MKT600: Marketing Plan for Kia Motors in the Indian Market Analysis

This report presents a marketing plan for Kia Motors, focusing on its entry into the Indian market. The report begins with an executive summary, followed by an overview of Kia Motors, including its global presence and product offerings. It then delves into the company's marketing strategies, such as segmentation, targeting, and positioning, tailored for the Indian market. The analysis includes a detailed examination of the target market, emphasizing the focus on youngsters, price-conscious individuals, and middle-class families. Furthermore, the report outlines Kia Motors' marketing mix, including product, price, place, and promotion strategies, with recommendations for implementation. The product strategy suggests focusing on mid-size SUVs and sedans, while the pricing strategy recommends competitive pricing. The place strategy emphasizes the importance of a wide dealer network, and the promotion strategy highlights the use of various media channels and partnerships. The report also addresses people, physical evidence, process, and partnership strategies. The report concludes with a summary of the key findings and recommendations, providing a comprehensive marketing plan for Kia Motors' success in the Indian market.

Running head: Principles of marketing
Principles of marketing

Principles of marketing
Table of Contents
Executive summary.....................................................................................................................................3
Company.....................................................................................................................................................3
Marketing strategies....................................................................................................................................3
Target market and positioning.................................................................................................................4
Marketing mix and recommendations......................................................................................................4
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8
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Executive summary
The main objective of this report is to make a marketing plan for Kia motors to gain
various opportunities and benefits in the global market. It is a continuation part of assignment 1.
In assignment 1, SWOT analysis and pestle analysis had been done to flourish the business in
Indian market. The situational analysis had been done in part 1 that helps to identify and measure
the challenges, risks and threats of the Indian market. In this report, it is explained that how the
company uses marketing strategies to struggle with competitors in the Indian market. The
marketing strategies such as targeting strategy, positioning strategy and marketing mix strategy
have been explained in the task briefly. These strategies help Kia motors to attain optimum level
in such market by selling the mid size SUV and a Sedan cars. A marketing mix that is
recommended to initiate the business in the Indian market also has been discussed in the task.
More detail of the paper
Company
Kia motors is a second biggest automobile manufacturer in South Korea, incorporated in
1944 (Kia, 2018). The company is a part of the Hyundai Kia automotive group and it is the
fourth biggest automaker across the world. The company is operating and managing its business
activities in more than 155 counties, Kia motors has annual sales in excess of 1.4 million (Kia,
2018). The main vehicles of Kia motors include luxury cars, automobiles and commercial
vehicles. The company is selling all these products in the international market to be a leader in
automobile industry.
Marketing strategies
The marketing strategy is a forward looking and long term strategy to attain common
objectives and goals in the competitive market. No company can uplift profitability and survive
business without using marketing strategies (Armstrong, Adam, Denize & Kotler, 2014). There
are various strategies that used by Kia motors while functioning and operating business in Indian
market. The marketing strategies help the firm to analyze risks and threats of the market along
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with this, strategies help in attaining competitive advantages. The company uses segmentation
strategy to attain common objectives, targets and goals. By implementing segmentation strategy,
the Kia motors has been able to categorize Indian market into the different segments such as
behavioral, demographic, geographic and psychographic (Lansbury, Suh & Kwon, 2007).
Target market and positioning
It is stated that the target marketing strategy plays a significant and empirical role in
analyzing and determining the tastes, preferences and choices of the customers. To select
adequate and dynamic target market, the company checks and evaluates the size of the Indian
market. The main target market of the company includes youngsters, and price conscious people
who want to buy the vehicles at appropriate prices. Apart from this, Kia Motors also focuses on
the family class and middle class people who are failed to pay higher prices of the automobile
vehicles. An overwhelming study shows that Kia Motors Company uses differentiated targeting
strategy for producing and selling its automobile products as the customer segments and enhance
and improve the customer satisfaction (Zorkóciová, Šimorová & Šášiková, 2014).
Apart from that, Kia Motors also uses positioning strategy to build and develop a strong
and dynamic image and position in the global market. Positioning includes the way an
organization’s marketing activities are perceived by the key target audience with regards to
marketing approaches used by the competitors like Toyota, Honda, and Nissan motors in the
Indian market. It is analyzed from the various studies that Kia motors uses value based
positioning strategy to take various functional benefits in the global market (Tomiyama, 2016).
An effective and dynamic positioning strategy identifies and considers the weaknesses and
strengths of the company, the needs of the customers and market and the position of the rivalries.
The main motive of Kia motors positioning strategy is that it permits the firm to highlight the
specific areas where they may outshine and compete the competitors in the Indian market. The
main motive behind the using of positioning strategy is to promote the automobile products in
the Indian market (Akpoyomare, Adeosun & Ganiyu, 2013).
Marketing mix and recommendations
The marketing mix is innovative strategy that is used by Kia motors to capture entire
target audience and to achieve various competitive benefits globally. In order to boost and
maximize the profitability and revenue, the company uses marketing mix strategy. The company
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uses this strategy to introduce new cars such as mid size SUV and a Sedan in the Indian market.
The marketing mix strategy for Kia Motors Company has been discussed below.
Product strategy: Kia motors is one of the growing and leading car manufacturing
organizations. Kia is a producing various commercial vehicles that are the products in its
marketing strategy. It is also producing various military vehicles for the government of South
Korea. The company has decided to enter into the Indian market to strive with rivals and earn
more and more revenue. The car market segment of the company includes sedans, hybrid and
electric car, crossovers and minivans and concepts cars. Some of the well known brands include
Rio, Picanto, Optima, Cerato, Carnival and Cadenza that help the company to augment
profitability and returns in Indian market (Mbaskool, 2018).
Kia motors has been developing its brand image in the international market. By
implementing this strategy, Kia motors wants to increase grab entire target audience in the Indian
market. It uses innovative research and development centers to launch products like mid size
SUV and a Sedan in the Indian market. The company is also trying to develop and improve the
ride quality and experience by implementing advanced technologies globally. It is recommended
that Kia motors should focus on the product development strategy to increase the sale of vehicles
in the Indian market. Brand identity is one of the unique and effective product strategies that can
be used by Kia motors while functioning and managing the business activities in such market. By
using innovative product strategy, the company can distinguish its products from the rivals in the
Indian market (Rakita, Madić & Marković, 2017).
Price strategy: One of the vital strategies that can be pursued by the company while managing
the business in the Indian market is pricing strategy. It is stated that Kia motors follows a
competitive pricing strategy in South Korean market. But it has to stepped into the exports
vehicles from the producing plants itself. Due to this, the company charges higher prices in some
other countries like UK and Africa. It is recommended from the various studies that Kia motors
shall focus on the low cost pricing strategy to stand out against the rivals in the Indian market.
Kia motors is not only rendering very competitive discounts and offers as its counterparts like
Nissan after it has attained brand value in various parts of the globe. As the company is
expanding and exploring the ambitiously and upscaling its flagships cars and its other innovative
and unique brands, it is trying to shift the ladder of the price range in the Indian market.
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Moreover, it shall be observed that Kia motors should maintain a price gaps between the ranges
of vehicle products so that the brand segments do not overlap in the Indian market (van Tuijl,
2014).
Place strategy: It is noted that Kia motors has received a worldwide network of approx 4000
dealers which serve to more than 170 countries. This will help the company to flourish the
business functions in the Indian market. There are 20 regional headquarters which take care of
approx 342 sales offices (Mbaskool, 2018). The company has further got a network of approx 11
shopping offices in all over the world which are strategically and effectively placed and able to
supply to America, Middle East, Europe, Asia pacific regions and Africa. The company has a
huge network to serve the customers internationally (Aula, 2010). It is portrayed that Kia motors
has got 3 research and development centers which take care of reengineering the ride experience
and cater innovative and unique design in the form concepts vehicles. It further has received
technical centers that help in enhancing and improving the safety ratings and effectiveness and
ride quality (Nagle & Müller, 2017). The commercial vehicles are also segmented by the
company in a hassle free manner. To expand and flourish the business in Indian market, the
company should focus on the places and analyze the market effectively. The company should
focus on the technician team, research and development centers before implementing the
business operations in such market. In this way, the company can attain a competitive edge while
managing business in the Indian market (Oh & Rhee, 2008).
Promotion strategy: Kia motors uses effective and strong marking and advertising policy. It
further has gained recognition because of its cooperation and significant association. The
company has sponsored Australian open apart from some other events such as FIFA and UEFA.
It is recommended that the company must pursue some innovative promotional strategies to beat
the competitors. It should further use some innovative social media channels like TV, print
media, billboards, online ads, and facebook for its marketing (Mbaskool, 2018). It should tie up
with various sports and athletes team to grow business in the Indian market. Various campaigns,
programs and sessions shall be conducted by the company while selling mid size SUV and a
Sedan cars in the Indian market (Onkvisit & Shaw, 2008). It will help to attract maximum
number of Indians in the marketplace. It is evaluated that the organization shall tie up with
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various NGOs, communities and government to provide support its stakeholders in the Indian
market (Mbaskool, 2018).
People: It is measured from the various studies that the company carries out a project to motivate
and educate their employees at the workplace. The company focuses on the educations,
qualifications and development of the workers while recruiting them for performing roles and
responsibilities. It is recommended that the Kia motors shall focus on the quality, educations and
qualification of the workforce while recruiting the candidates in the Indian market. The firm
further must focus on the job retention and development programs to conduct business smoothly
in such market. An employee is considered as a asset of every company therefore, dynamic and
effective recruitment and selection process shall be implemented by Kia motors while initiating
the business in foreign market (Mbaskool, 2018).
Physical evidence strategy: The interaction and cooperation between the manufacturers and
customers shall be done when a business deal is made in the Indian market. In today’s modern
world, the company has maintained a tangible presence and a innovative dealership with its new
and old customers globally. It is recommended that documentation must be done by the firm
while selling the products to the customers around the globe. By using this strategy, Kia motors
can gain confidence and loyalty of the customers in the new market.
Process strategy: The company follows a lean manufacturing approach to product vehicles in
the global market. It is suggested that the firm should focus on the outsourcing and software
engine that help in examining and evaluating 5 systems such as parts sales, vehicles ID no,
warranty claims, vehicle inventory and master storage file. The organization should further use
innovative policies, processes and approaches to stay in the competitive market (Mbaskool,
2018).
Partnerships: It is recommended that Kia Motors must tie up with various NGO’s, Indian
government, celebrities, and sports and athletes team to accomplish the desired objectives and
targets in the Indian market. Further, partnership is also needed to promote and launch mid size
SUV and a Sedan cars in the such market (Kia, 2018).
Apart from this, it is recommended that the company must focus on the business level
and corporate level strategies to penetrate the entire market (Hill, Jones & Schilling, 2015). It
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should also identify and analyze the choices, needs and requirements of the Indian customers for
capturing entire market and to augment market share. Diversification strategy shall be considered
while conducting business in India (Hinterhuber, 2008).
Conclusion
It is evaluated from the above overwhelming study that Kia motors is growing motor
vehicle manufacturing in Korea. The company wants to expand its business in Indian market
therefore, a marketing plan is made to launch mid size SUV and a Sedan cars in such market.
The above analysis showcases that Kia motors Corporation uses innovative and dynamic
marketing strategies to expand operations and actions in the Indian market. It is stated that
marketing mix is recommended to achieve desired mission and vision and to cope up with rivals
in such market. An effective and dynamic targeting and positioning strategy is further initiated
by Kia motors to identify and measure the choices and preferences of the Indian customers.
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References
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