British Journal of Industrial Relations

Running head: MARKETING FRAMEWORK OF HYUNDAI MOTOR IN HAITI ECONOMY
MARKETING FRAMEWORK OF
HYUNDAI MOTORS IN HAITI ECONOMY
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1 MARKETING FRAMEWORK OF HYUNDAI MOTOR IN HAITI ECONOMY
Introduction
The paper studies the marketing framework of Hyundai Motors in Haiti economy
through comparative analysis with its home market in South Korea. It examines the
marketing strategies followed by the company to operate in both countries –South Korea
being a developed market while Haiti being an underdeveloped market. The contrast of two
different markets are taken to bring clarity and portray the difference of culture, consumer
behavior along with the marketing mix. Haiti is chosen as the selected country to show how
business can also flourish in a poor market. The paper discusses how Haiti’s business
environment can pose threats as well as opportunities for Hyundai Motors and also
recommendations are suggested to improve the market.
Brief Analysis of Hyundai Motors
Hyundai Motors is the largest car manufacturing leader in automobile industry
globally. With headquarter in Seoul, South Korea, it is now one of the top 100 valuable car
brands and the official sponsor of the FIFA World Cup for 17 years. With business divisions
in Kia and Genesis, the overall company’s net revenue on 2018 is 1.64 trillion. The brand
philosophy of the company is strong commitment of the humans of the society in terms of
comfortable and fast-paced mobility with quality time [2]. This multinational conglomerate is
the third largest car manufacturer after Toyota and Volkswagen operating with widespread
business over Asia, South and Central America. It presently has nine profit generation car
models across product line segments – Eon, Grandi10, Elitei20, Activei20, Xcent, Verna,
Elantra, Creta and Tucson [15]

2 MARKETING FRAMEWORK OF HYUNDAI MOTOR IN HAITI ECONOMY
Current Marketing Strategies of Hyundai Motors
It has a four-tier distribution channel with manufacturers, dealers, retailers and
customers. Hyundai in its customer sales promotion strategy use mainly free accessories,
fewer rates of interest, exchange offers with a certain percentage of discount to attract
consumers to their retail showrooms. The target market of Hyundai consists of the middle
class and elite class level of consumers with high price models for conspicuous consumption
while the lighter models are for average class level. Hyundai gains a competitive advantage
through differentiation by investing about 10% of its market revenue in research and
development for bringing technological innovation [9]. The innovative designs of the
vehicles based on a sensual sportiness principle through creative marketing strategies,
Hyundai increased its guarantee period, mileage coverage and inserted new modulations of
eco-friendly features on the cars [15].
Challenges Encountered by Hyundai Motors in Haiti
The main opportunities lying for Hyundai Motors in Haiti are:
• The government of Haiti has increased its revenue collection, but 20% of its
annual budget comes from foreign aid [3].
• In 2003, Haiti reportedly had a higher ratio with people per registered vehicles
among other countries in the Western Hemisphere. With a population of around 10 million,
Haiti offers a significant market entry for exporters in automobiles [11].
Specific international programs like CBTPA and HOPE II have been extended by
the Haiti Economic Lift Program (HELP) Act, 2010 till 2020. The Trade Preferences
Extension Act, 2015 extended trade benefits until 2025 [12].

3 MARKETING FRAMEWORK OF HYUNDAI MOTOR IN HAITI ECONOMY
The PESTLE is used to study the external environment of Hyundai Motors in
both Haiti and South Korea.
• Political – In Haiti, few people pay taxes according to the World Bank. It is
estimated that remittances to Haiti at approximate $3 billion on 2018 constituting 31% of its
GDP running on foreign aids [3]. While in South Korea, people pay taxes and follow the
strict regulations of the country’s laws. It is GDP has fallen for three consecutive years due to
trade issues with the U.S.
• Economic- Haiti being an underdeveloped economy involves widespread
political instability in poverty and natural disasters with an increased flow of migrants [4].
South Korea is a developing economy with less poverty and natural disasters, but with a high
pollution index and with focus on eco-friendly production of automobile models [8].
• Social- In Haiti, the elite class enjoy a luxurious lifestyle and are capable of
purchasing the cars only while the rural people are simplistic in the countryside using
livestock or trucks and motorcycles as transport [6]. In South Korea, both the rural and urban
sectors enjoy a medium class of luxury. The elite class prefer sporty, trendy cars and are
always after a fashion. The rural sectors prefer low luxury through purchase within budget.
• Technological- Due to insufficient wired infrastructure and wireless antennas,
Internet service providers face on trying to extend their reach [12]. South Korea relies on high
technology with full network coverage and people using the internet. All types of high-tech
solutions are installed in cars.
• Legal- There are less safe driving laws for drivers and pollution is not taken
into consideration. The legal procedures in terms of driving and fuel efficiency are highly
controlled.