Marketing and Management for Hyundai Motor Company

This report discusses the marketing and management strategies for Hyundai Motor Company's newly launched small SUV brand, Kona, in the Australian market. It includes product description, marketing objectives, target market, positioning, unique selling proposition, communications, pricing, and value proposition.

Running Head: Marketing and Management
hyundai motor company
Marketing and Management

Marketing and Management 1
Table of Contents
Introduction......................................................................................................................................2
Product/brand description................................................................................................................2
Marketing objectives.......................................................................................................................3
Direct competitor brands.................................................................................................................3
Target market...................................................................................................................................4
Positioning.......................................................................................................................................4
Unique selling proposition...............................................................................................................5
Communications..............................................................................................................................5
Brand image.................................................................................................................................5
Non-digital media platforms........................................................................................................5
Digital Media platforms...............................................................................................................6
Communications objectives.........................................................................................................6
Pricing objective..........................................................................................................................6
Pricing related to competitors......................................................................................................6
The value proposition...................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

Marketing and Management 2
Introduction
The Hyundai Motor Company is a South Korean Multinational automotive manufacturing
company. Its headquarters is situated in Seoul, South Korea. The company was founded in 1967
and since then, they have made their presence in various parts of the globe. The company is
known as the third largest vehicle manufacturing brand in the globe and deals in various
segments of cars. As per the case study, Hyundai Motor Company has planned to launch a small
SUV brand in Australian market in the name of Kona. The Kona brand appeared in Hyundai
dealerships accompanied by a high visibility marketing communications campaign. Management
of the organization decided to launch Kona in the Australian market by reviewing their past
performance in Australia. Company has a significant sales and market share in Australian
Consumer Passenger Vehicle Market. In relation with the successful launch of the new car in the
target market, promotional campaign will be discussed in this report. Marketing objectives,
primary competitors of the organization, target market of the organization, USPs of the car, etc.
elements related with the marketing and promotion will be discussed in this report so that the
launching of the car would be done in an effective manner (Hyundai Motor Company, 2018).
Product/brand description
As per the case study, Hyundai Motor Company has decided to launch a small SUV in the
Australian market in order to expand their customer base in the small city cars market. Primary
objective behind launching small SUV car is to expand its market share in the Australian market
along with increasing their sales. Kona has been launched to develop a distinctive image in the
market and for making their product unique from its primary competitors. Hyundai’s new small
segment SUV is a five seater car along with the seating capacity; it has a large cabin and boot
space through which outstation trips could easily be planned. Apart from these features, the new
SUV has been launched in both manual and automatic variants along with the option in diesel
and petrol variant. While comparing this car with its competitor’ cars in this segment, Kona has
been found has the most reliable and strongest product. With the help of this car, organization
has planned to cross the 1 million new car sales in one year after its launching date (Hyundai
Motor Company, 2018).

Marketing and Management 3
Marketing objectives
Organization has launched Kona with the view to acquire a large part of the market share in
terms of small city cars. While in the initial period, organizational main objectives will be
spreading awareness amongst the target audience in relevance with the car’s unique features,
specifications and other advantages. Apart from this, organizational main objective behind
launching this car is to reach to the target sale of 1 million new cars in one year after its
launching. Increase in the customer base in the first three months after the car’s launching is
another major objective of Hyundai (Jo & You, 2011).
Along with the increase in the demand for the car and increase in the market share in the target
market, organizational other marketing objectives linked with this car is customer acquisition,
retention and gaining competitive advantage in the market (Armstrong, et. al., 2015).
Direct competitor brands
(Source: Hyundai Motor Company, 2018)
Hyundai Kona’s primary competitors are Honda HR-V, Mazda CX and Mitsubishi ASX. From
the above figure, it could be evaluated that in all aspects, Hyundai Kona is far better than its
competitors. With the help of this, organization will be able to attain adequate competitive

Marketing and Management 4
advantage in the target market along with developing a unique image in the target market.
Hyundai Kona comes with packed technology that helps the driver to control the car and be on
track while being connected. With features like the Head-Up Display that has never been seen in
Hyundai’s SUV range, the Kona is a small SUV designed for today’s hyper connected world
(Hyundai Motor Company, 2018).
Target market
In relation with determining the most appropriate target market for the newly launched small
SUV in the market, it is necessary to use segmentation strategy. Segmentation strategy is used
for dividing a huge market into small groups with the objective of analysing the most appropriate
market from the organizational perceptive in relation with the particular product. As per the case
study, Hyundai is launching small SUV in the Australian market with the objective of enhancing
its market share in small city cars’ market. For analysing the target market for newly launched
Kona, it is necessary for the organization to evaluate all segments of the target market (Lee,
Kozlenkova & Palmatier, 2015).
Demographic segment of the segment criteria defines that people are classified on the basis of
their age, income, gender, family size, etc. Psychographics are classified on the basis of unique
personalities, traits, attitudes, interest and lifestyles (George, et. al., 2018). Apart from these two
types of segmentation, geographic are classified on the basis of nationality, country, city, etc.
The last one is behavioural segmentation and in this category, people fall down who purchase
products on the basis of consumer buying behaviour. In relation with the small SUV car,
organization could use demographics behavioural types of segmentation strategies for
approaching towards their target audience (Wedel & Kamakura, 2012).
Hyundai will focus over young people below age 35 for promoting their new small SUV Kona in
the Australian market. This is because this car is designed by considering the two most basic
features i.e. fun and safety and with the help of these features, organization will easily approach
to its target audience and the car has also been designed by considering the choices of young
people.

Marketing and Management 5
Positioning
Hyundai Motor Company has launched small SUV car with the objective of increasing the
company’s market share in the small city car’s market along with gaining competitive advantage
in the Australian market. In relation with this, positioning statement for Kona is “Live more
Vibrant Life”. With the help of this, organization will be able to make a separate image in the
target market by providing unique features along with advanced specifications and safety
measures to the target audience at reasonable prices. This will help the organization to uplift its
sales and the objective of achieving to the 1 million new cars sales in one year will also be
acquired easily (Hofmann-Wellenhof, Lichtenegger & Collins, 2012).
Unique selling proposition
Technological features of Kona are advanced enough to make its distinct and better image from
the company’s cars in the same segment. Along with this, advanced safety measures has also
been fitted in the car because the most two important things in a car is fun and safety. The Kona
has been built by fulfilling both the expectation because it is fun to drive along with modern
safety features including Hyundai SmartSense™ technology. Apart from this, Hyundai also
offers complimentary first service at 1,500 km; Hyundai offers Australia’s highest levels of
ongoing support and care in our iCare program (Hyundai Motor Company, 2018).
Communications
For communicating with the target audience, organization has adopted various advertisement and
promotional strategies. In these strategies, primary message which will be communicated to the
target audience is the positioning statement of the organization i.e. ‘Live a more Vibrant Life”
(Guérin, et. al., 2013).
Brand image
Hyundai is engaged in the automotive industry since a very long time and they have gained a
reputed position in the industry along with the high trustworthiness amongst the customers. This
is the first time; Hyundai has entered into small SUV market with the objective of increasing
their market share in the small city cars’ market (Hyundai Motor Company, 2018).

Marketing and Management 6
Non-digital media platforms
In relation with spreading awareness amongst the target audience about the specification and the
features of the car for the purpose of promotion and advertisement, organization could use
various strategies such as print medium of promotion, digital medium as well as through special
events. Amongst the print mediums, the most popular range of mediums which could be used by
the organization for promoting their newly launched car are TV, radio, newspapers, magazines,
etc. (Chaffey & Ellis-Chadwick, 2016).
Hyundai will implement mixture of print as well as digital medium of advertisement and
promotion for promoting their newly launched small SUV in the target market. Amongst the
available techniques, social media platforms like email marketing will be majorly used for
promotion of the new car. Apart from this, organization could also promote their new car
through trending strategy of sponsorship of special events.
Digital Media platforms
In terms of digital mediums of promotion and advertisement, organization could use their official
site for providing appropriate information in relevance with the new small SUV car along with
this; social media platforms could also be used as it is the most trending strategy for uplifting the
demand of the newly launched products as well as for uplifting sales.
Communications objectives
Objective behind communicating with the target audience is to spread awareness amongst the
about the newly launched product. Along with this, it is also necessary to solve customers’
queries related to any concern about the product. Apart from this, taking feedbacks about the
product is another major communication objective of the organization (Lipsman, et. al., 2012).
Hyundai’s communication objectives are to spread awareness amongst the target audience in
relation with the launching of the new car. Along with this, organizational other objectives are to
provide sufficient information to the target audience in relevance with the specifications, features
and the USPs of the car. This will help the organization to develop better customer relations.

Marketing and Management 7
Pricing objective
Along with the introduction of small SUV car in the target market, pricing objectives are
increasing sales and profitability of the organization. In relation to this, organization has adopted
cost leadership strategy with the objective of providing unique design and advanced features at
reasonable rates to the target audience. By adaptation of the cost leadership strategy,
organizational main motive is to acquire large part of the market as well as to uplift their and
revenues and profitability so that the desires sales objectives could be attained.
Pricing related to competitors
With the help of cost leadership strategy, organization would be able to make their separate
image in the market. Competitive advantage in the market will also be attained easily in the
market. This also helps the organization to develop a unique image amongst the target audience
in relevance with the competitors.
The value proposition
Value proposition of Hyundai Kona is that it is an advanced technology based small SUV with
adequate safety measures. This helps the organization to make their car unique and effective as
compared to its competitors (Nagle, Hogan & Zale, 2016).
Conclusion
From the aforesaid information, it can be concluded that Hyundai has planned to enter into small
city cars’ market and for the same objective; the very first car they have launched is Kona which
is a small SUV. This car has all specifications which are necessary for fulfilling the basic two
requirements about the car i.e. fun with safety. In this report, its promotional campaign have
been discussed under which communication objectives of the organization and the mediums used
for promoting the new car in the Australian market have been discussed.

Marketing and Management 8
References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Chaffey, D. and Ellis-Chadwick, F., 2016. Digital marketing. Prentice Hall.
George, W.B., Smith, K.G., Hansen, I.M., Aurigemma, P. and Sandquist, C.J., Adobe Systems
Inc, 2018. Geographic segmentation systems and methods. U.S. Patent 9,860,148.
Guérin, C., Reignier, J., Richard, J.C., Beuret, P., Gacouin, A., Boulain, T., Mercier, E., Badet,
M., Mercat, A., Baudin, O. and Clavel, M., 2013. Prone positioning in severe acute respiratory
distress syndrome. New England Journal of Medicine, 368(23), pp.2159-2168.
Hofmann-Wellenhof, B., Lichtenegger, H. and Collins, J., 2012. Global positioning system:
theory and practice. Springer Science & Business Media.
Hyundai Motor Company, 2018. Kona [online]. Available at:
http://www.hyundai.com.au/cars/suvs/kona. [Accessed 29th March 2018].
Jo, H.J. and You, J.S., 2011. Transferring production systems: an institutionalist account of
Hyundai motor company in the United States. Journal of East Asian Studies, 11(1), pp.41-74.
Lee, J.Y., Kozlenkova, I.V. and Palmatier, R.W., 2015. Structural marketing: Using
organizational structure to achieve marketing objectives. Journal of the Academy of Marketing
Science, 43(1), pp.73-99.
Lipsman, A., Mudd, G., Rich, M. and Bruich, S., 2012. The power of “like”: How brands reach
(and influence) fans through social-media marketing. Journal of Advertising research, 52(1),
pp.40-52.
Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New International
Edition. Routledge.
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological
foundations (Vol. 8). Springer Science & Business Media.

Marketing and Management 9