marketing mix of automobile sector

7/24/2019 Marketing Mix Of Automobile Sector

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STUDY OF MARKETING MIX OF AUTOMOBILE

SECTOR

HYUNDAI

Submitted by:

DIVYANKVERMAC!"": BCOM#H$%"&'

E%($me%t %$: A)**+,-+--.S/e0i!i1!ti$%: M!(2eti%3

U%de( 3uid!%0e $4:

M(& DHARMENDRA 5ANDEY

I%du"t(y Guide" %!me: F!0uty GuideDe"i3%!ti$%: De"i3%!ti$%

O(3!%i1!ti$%: ABS6 Lu02%$7

(SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME

MASTERS IN BUSINESS ADMINISTRATION (2014-17))


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AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR 5RADESH LUCKNO8

DECLARATION

Title of project report Study Of Marketing Mix Of Automobile Sector

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1ate2 ,ame of student231i"yank 4erma

5nrolment no23 A67789:8::;


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!TTA.


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INTERSIP PRO!RAM AND

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EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE *1AT5+

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*Institution deputing te students+

A--5.F==AIII S5M) ==A 4 S5M) =-OM 4 S5M+ from Amity !ni"ersity) !ttar


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(Student) (Facuty !uide) Director ("#S)

Acknowledgement

Tis project report would not a"e been possible witout te support and guidance of my

teacer' I would express my eart3felt gratitude towards and) witout wose guidance and

support) I would not a"e been able to understand te objecti"e of te project and tis project

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all te details wit patience' I would express my gratitude towards im for taking time out of im

scedule to guide me during te report'


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PREFACE


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I feel igly grati$ed in tis report' It as been my constant endea"or to present tis report

te most systematic and analytical manner'

TABLE OF CONTENTS

E)e-$t'5e S$mmar%

S%(o6'

I(trod$-t'o( De7('t'o(

De-r'6t'o( of %$(da' Motor

Re5'e8


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Com6a(% Pro7+e

Reear-h Methodo+og%

E6'+og$e

9'*+'ogra6h%

E)e-$t'5e S$mmar%

Marketing combine comprise of 8


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Typical samples of factory3made) tangible objects area unit te motor automobile and also te

disposable raGor' A less ob"ious owe"er present factory3made ser"ice could be a pc OS'

5"ery product is subject to a life cycle as well as a growt part followed by a maturity part and

Je"entuallyKand at lastL A, e"entual amount of decline as sales fall' Marketers sould do carefu

analysis on owe"er long te life cycle of te mercandise teyre selling is probably going to be

and focus teir attention on completely di0erent callenges tat arise because te productmo"es'

Te traDcker sould additionally take into account te mercandise combine' Marketers will

expand tis product combine by increasing an exact product lines dept or by increasing te

amount of product lines' Marketers ougt to take into account a way to position te mercandis

a way to exploit te wole) a way to exploit te companys resources and te way to assemble

te mercandise combine in order tat e"ery product enances te opposite' Te traDcker

sould additionally take into account de"elopment ways'

'


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Ad"ertising co"ers any communication tats bougt) from cinema commercials) radio and web

ad"ertisements troug medium and billboards' packaging is were"er te communication isnt

directly bougt and includes press releases) support deals) exibitions) conferences) seminars o

trade fairs and e"ents' spoken is any apparently informal communication concerning te

mercandise by standard people) glad customers or indi"iduals speci$cally engaged to form

word of mout momentum' sta0 typically plays a "ery important role in word of mout andpackaging'

S%(o6' for :Com6ar'(g Pr'-'(g Strateg'e Of A$tomo*'+

Com6a('e


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Student is re%uired to pro"ide te following information at te time of registration witin a wee

of joining teir course in te industry'

Student#s ,ame23 1i"yank 4erma

5nrolment ,o23A67789:8::;


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Te selling combine is one in e"ery of te foremost far3famed selling terms' Te selling combine

is tat te plan of action or operational a part of a selling arrange' Te selling combine is

additionally known as te 8


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Tere s%uare measure many ways to cost a product' Bet#s a"e a glance at a number of tem

and take a look at to know te simplest policyFstrategy in "aried

situations'


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A ric body of literature exists on di0ering types of $rm learning and its role in $rm#s

performance te normal exposition of $rm centered on industry3speci$c "ariables to capture te

extent of inno"ations and proxies tem troug "ariables like .H1 expenditure and range of

patents' 4ariations in inter3$rm performances werent captured as $rm was sculptural in terms o

production perform wit any inter3$rm di0erences arising strictly out of producti"ity canges' In

reality) di0erences in inter3$rm performances exist owing to te presence of informationasymmetries) distributed data and di0erential capabilities tat successi"ely create to completel

di0erent learning processes inside' 4arious forms of learning processes are known witin te

Biterature learning by doing) learning troug ac%uisition of internal resources) learning troug

spillo"ers) learning troug inno"ations) learning by commercialism and last owe"er not te

smallest amount) learning and forgetting'

Lear('(g *% do'(g

Bearning cur"e is outlined as cur"e relating unit prices to accumulated "olume) tat a"e an

e0ect on future prices and market position' te normal metod of estimating te training cur"e

to estimate te connection between input use and accumulati"e output) wereby input units

decline wit accumulated output' Spence *::+ models te implications o0 earning cur"e on

te entry) market sares and gain of corporations' Analogous to economies of scale were"er t

typical prices fall slowly relati"e to output) making entry barriers& during a similar approac) its

witin te case of intermediate learning cur"es were"er te entry barriers are te greatest'

Industries wit terribly slow or in no time learning a"e low entry barriers wit a lot ofcompetition' ?rom te regulation perspecti"e)enforcing competition in industries wit moderate

learning may scale back tecnical potency'

Lear('(g *% I((o5at'o("yundai 5ngineering and -onstruction -ompany in :86' >yundai

Motor -ompany was later establised in :96' Te companys :st model) te partial "eil) was

discarged in cooperation wit ?ord Motor -ompany in :9' once >yundai needed to de"elop

teir own automoti"e) tey employed /eorge Turnbull) te pre"ious decision maker of capital of

Texas Morris at =ritis Beyland' >e successi"ely employed N alternati"e prime =ritis automoti"


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engineers' Tey were Cennet =arnett body style) engineers on Simpson and 5dward

-apman) on -rostwaite ex3=.M as cassis engineer and yundai automoti"e was engineered'

In :9) >yundai began to sell cars witin te us) and terefore te stand out was appointed as

U=est yundai cars reaced te four million

mark' In ::) te corporate succeeded in de"eloping its :st proprietary I-5) te four3cylinder

Alpa) and additionally its own transmission) terefore pa"ing te means for tecnological

independence'

In :9) >yundai Motor .epublic of India restricted was establised wit a production plant in

Irungattukottai close to Madras) India'

In :) >yundai began to o"eraul its image in an e0ort to determine itself as a $rst complete'

-ung u @ung transferred leadersip of >yundai Motor to is son) -ung Mong Coo) in :'

>yundais parent company) >yundai Motor cluster) endowed ea"ily witin te %uality) design)

producing) and long analysis of its "eicles' It accessorial a :73year or one undred)7773mile

*:97)777 km+ warrant to cars sold3out witin te us A,d launced an aggressi"e selling

campaign'

In 778) >yundai was ierarcal second in Uinitial %ualityU in an exceedingly sur"eyFstudy by '1

yundai as additionally been one amongst te worldwide oDcia

sponsors of te ?I?A tournament'


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In 779) te Sout Corean go"ernment initiated A, in"estigation of -ung Mong Coos practices

as ead of >yundai) suspecting im of corruption' On twenty eigt /regorian calendar mont

779) -ung was in remission) and carged for teft of one undred billion Sout Corean won

*!SW:79 million+' As a result) >yundai cairman and corporate executi"e) Cim 1ong3jin) replaced

im as ead of te corporate' On tirty September 7::) rule Seung Suk declared is retiremen

as corporate executi"e of >yundai Motor -o' witin te interim replacement amount) -ungMong3koo and Cim 5ok3jo can di"ide te duties of te corporate executi"e position'

Methodo+og%

In tis study) we a"e a tendency to broadly speaking follow te paradigm of Structure3-onduct


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caracter of competition is analyGed' Troug performance focus is gi"en on pro$t and

drawback areas of te arena' Special attention as been gi"en on go"ernment policies

concerning in"estment witin te automobile sector) trade performance and di0erent trade

policies tat area unit mo"ing automobile sector of tose countries'

Automobile market structure witin te and3picked countries as been e"aluated taking under

consideration te demand pattern and production structure' -onsidering te market pase)

country wise production information is analyGed to spot during wic segments tese countries

area unit specialiGing' Also) major players and teir possession pattern are known to grasp te

role of state) domestic non3public sector and M,-s witin te de"elopment of te car sector' a

number of te policy parts like form of taxes and tari0s on te arena are studied' Taxes area uni

di"ided into ; major groups "iG' company taxation) tax on "eicles and import tari0s on -=! an

a cross comparison are pro"ided to grasp te business setting'

To analyGe production) sales and trade information) we"e noticed tat te information structure

of productions area unit totally di0erent in se"eral countries'


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category and kind of fuel used *diesel or petrol+' for instance "ariety of class segmentation as

four teams "iG' -ar) MS code tat is in armony

at te 93digit le"el across te countries' Automobile sector consists of eigty two 93digit le"el >S

codesXX and terefore te nature of segmentation doesnt matc wit te categories of

production information' >ence) te analysis of trade information couldnt be joined wit te

assembly information'

Te trade analysis is completed considering tese 93digit codes' Tese codes represent all te

elements of "eicles and "eicles as a full' -odes area unit segmental into se"en sub3 teams "iG

.ubber and /lass element) Iron and Steel element) 5ngines and components) macine element macine element II) macine element III and 4eicles' macine element I) consists of pulleys)

gaskets) screws) electrical $ttings) macine element II contains body elements) bumpers) brakes

clutces) safety element and macine element III includes seats) indicators) bicycle and motor

cycle elements) etc' Te trends of international trade associated wit tese sub teams area unit

analyGed to grasp teir pattern' ?irst) six sub3groups area unit in te main elements and among

tese initial ; area unit important and major elements for any "eicle' Auto3components *I3III+

area unit in te main tiny elements and accessories' Te collecti"e trade dynamics area unit

analyGed to grasp te caracter and tecnical standards of te car trade of tese and3picked

countries' Also) major export destination and import sourcing countries for e"ery cluster are

analyGed to judge te amendment in commercialism partners' All te export3import information

of all te countries area unit taken from (orld Trade Integrated Solutions *(ITS+'

Brief Review of Hyundai Marketing Strategies:-

T>5


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In August 778) a number one business newspaper reportable tat >yundai Motors Asian nation

restricted *>MIB+) associate degree Indian subsidiary of te Sout Corea3 primarily based >yund

Motors -ompany *>M-+; was expected to scale back te "alue of its Qagsip automobile 3 Santr

3 by te maximum amount as .s forty)777' business specialists were expecting a discount in

Santros "alue in response to te "alue war being waged by te market leader in Asian nation 3

Maruti !dyog restricted *M!B+)8 tat ad reduced te "alue of its largest marketing automobilewitin te = section 3 Alto 3 by .s $fty eigt)777 in "alue cuts ranging from September 77;'

Tis mo"e ad resulted in Alto substitution Santro because te largest marketing automobile

witin te = section witin te amount anuary to une 778 *.efer 5xibit I for te market

segmentation of te Indian automobile industry+'

.ebutting te report on "alue cuts) >MIBs manager) =4. Subbu *Subbu+ aforesaid) U(e arent

cutting costs on te Santro' we"e allowed our competitors te per%uisite of cutting costs'UN

many dealers of >MIB additionally felt tat te corporate wouldnt scale back Santros "aluebecause it ad not adopted suc tecni%ues earlier'

Santro ad been te foremost roaring product of >MIB and was additionally te biggest

marketing automobile witin te = section until te yr 77;378'

Introduced in late :) Santro ad emerged because te second largest marketing automobile

in Asian nation once M!Bs M77 and ad preser"ed its position until Marc 778 *.efer 5xibit

for te wole units and wort sales of te igest ele"en automobile models in India+'

In middle 778) >MIB wit its four models) Santro) Accent) classical music and 5lantra) was te

second largest company in Asian nation wit nineteen market sare witin te business' te

corporate was aiming to launc anoter model) /etG) in September 778'

MA.C5TI,/ SA,T.O

Santro recei"ed associate degree encouraging feedback from customers (>O appreciated its

distincti"e style tat ga"e a lot of eadroom and expedited straigtforward entry and exit'''

BA!,-> O? A--5,T


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=y middle :) te most important players realised tat te = section would be te %uickest

growing witin te automobile trade' To cas in) telepone company re3launced its Indica by

introducing many new options and determination te glitces witin te original model'''

Marketing Management -ase Studies K -ase Study in Management) Operations) Strategies)

promoting Management) -ase Studies.epositioning Santro

=y late 77) te competition witin te = section ad accumulated considerably' M!Bs Alto ta

was launced in /regorian calendar mont 777 ad recei"ed a decent response' toug >MIB

Santro remained te biggest commerce automobile witin te = section) M!B commanded te

biggest market sare during tis section attributable to te combined sale of its ; cars 3 Yen)

(agon . and Alto'''

STAT!S I, 778

Te yr 77;378 $nised on a positi"e note for >MIB' te corporate acie"ed re"enues of .s $fty

bn and pro$t once tax *


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>@!,1AI endea"ors to snatc te opportunities radiated from te worldwide rebuilding of te

business and migration of creation base to creating nations' Most eading "eicle makers keep

on putting resources into .esearc and de"elopment so tat te generation expenses get

lessened and create association wit nearby $rms wic focus on creation exercises to decrease

cost' /o"ernment arrangements towards "eicles commercial "entures in tese nations

additionally got ad"anced alongside tis' Strategies towards liberaliGation of speculation

administration brougt uge pro$ts to te cose nations as pri"ate players "entures in wit

present day engineering and ?1I began spilling in mostly troug te ands of apanese auto

majors' ,oneteless) te o"ercapacity issue confronted by te worldwide auto industry likewise

creped in te car business of tese cose nations' 1istincti"e nations took di"erse approaces t

andle te o"ercapacity issue in te segment' -inese as endea"ored to merge te business

troug mergers and obtaining wile Indians looked for abroad market' In bot tese nations)

go"ernment approaces a"e been towards ad"ancement of te indigenous auto segment

troug reinforcing te national players wile Tailand concentrated essentially on te fare

sowcase troug apanese organiGations'

In -ina) organiGation structures are primarily as "s' !nion of ouseold organiGations is

constantly ele"ated to structure bigger gaterings) for example) ?A() 1M-) and so on' In India)

ouseold organiGations) for example) Telco) >industan 5ngines are recorded organiGations at t

stock trade wit generally low le"el of ?1I' Tese organiGations de"eloped signi$cantly under t

defensi"e en"ironment of te administration and are presently ri"aling Mncs' Indeed organiGatio

like Maruti) in wic SuGuki as a noteworty stake) as become troug go"ernment support

and today) go"ernment olds more tan :7Z o0er in te organiGation' Actually) ouseold

players in Indonesia stayed as accomplices to Mncs in amassing exercises' Insurance in car

segment in tese nations prior was fundamentally troug ig le"y) import boycott of -=!)

neigborood substance utiliGation condition) and con$nement on pri"ate speculation and oter

administrati"e condition' Insurance in segment part did not function admirably as a rule as it

elped just essential parts di"ision to become locally in tese nations' Te majority of te

discriminating segments are foreign made notwitstanding insurance gi"en to part segment'

Tai go"ernment as embraced a tecni%ue to connect te cre"ices to te segment part troug

its speculation ad"ancement plan' India is additionally now trying to create indigenous part

segment troug gi"ing concentrate in .esearc and de"elopment and tigtening te I


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point in te essential part segment troug furter decrease in expense' ?or te "eicles) it is a

of now concentrating on te union of te local parts and enancing te inno"ati"e and

additionally managerial abilities of te segment as a rule' =ecause of neigborood substance

prere%uisite and absence of learned patent rigts) sub3framework and con$guration

impro"ement area as not been created in -ina wic is an essential for worldwide

aggressi"eness' Assurance in Indonesia troug its impetus programs did not elp segmentindustry muc as constructing agents transported in basic parts and purcased just fundamenta

and little segments pro"incially' Ten again) bigger re%uest in utility and business "eicles

elped te sub3segment concentrate on parts utiliGed as a part of tis section'

-ar industry in tese nations is liable to mixed bag of carges) for example) extract carge) dea

carge) corporate pay duty) 4AT and import obligations' 1uty structure of tese nations on

"eicles is not comparati"e wic demonstrates te entusiasm of te administration' In

Tailand and -ina distincti"e expenses are exacted on autos) engine "eicles) -"s and so fort

wile in India it is not "eicle particular and constrained to UautosU and oters' Te expenses

are moderately ea"ier in India' -orporate


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9'*+ogra6h%"

marketing mix of automobile sector

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