2012 HYUNDAI AUTO MOBILES

MBA FINAL YEAR PROJECT DURGAPUR INSTITUTE OF MANAGEMENT AND SCIENCE

Affiliated to WBUT(kolkata) SAHID SUKUMAR BANERJEE SARANI,BIDHAN NAGAR DURGAPUR Pin- 713212, West Bengal Contact- +91-343-2532606 E-mail: [email protected]

Prepared by:
Tuhin Subhra Kundu MBA (marketing) 2nd yr Roll no: 24900911032 Registration No-112490710032 of 2011-2013

Company guide: guide:

Mr. Abhisek Ganguly

faculty
Ass. prof. Amit kr. Banerjee

TOPIC NO 1
2

TOPIC NAME ACKNOWLEDGEMENT COMPANY PROFILE BACK GROUND HYUNDAI ENTRY IN INDIA SUCCESS STORY KEY COMPETITORS PRODUCT NAME INTRODUCTION HYUNDAIS ADVERTISEMENTS PORTERS 5 FORCES MODEL PEST ANALYSIS MARKETING MIX SWOT ANALYSIS

PAGE NO 4 5 6 7 8 9 10-18 19-35 36-38 39-40 41-43

3 4 5 6 7 8 9 10 11 12 13

44-47 48-52

14

CONCLUSION

53

15

REFERENCES / BIBLOGRAPHY

54

16

QUESTIONNAIRE

55

3 |Page

I acknowledge too many people who made me the direct and indirect cooperations for preparing my project. They give me moral supports and guidance to make my project unique. First and foremost I would like to very much thankful for the guidance and support of I also equally thankful the valuable and immense contribution of my guide Besides, I would like to express my heart-felt gratitude to Prof. Mr.Satyadeb Mondal (HOD of the MBA Dept.), and Mr. Rakesh Yadav(Training & Placement officer). And I would thankful to them who was very valuable person like my teachers, friends etc. to give me help and guidance. Above all I express my deepest reverence my parents. Without their support I do not complete my project.

Hyundai Motor India Ltd. (HMIL) is a wholly owned subsidiary of the Hyundai Motor Company (HMC), Korea, a part of the Hyundai Motor Group comprising Hyundai Motor Company, Kia Motors, Hyundai Mobis and other affiliated companies, with a combined turnover of over US$ 50 Billion. The Hyundai Motor Group with a presence in over 185 countries and combined annual sales of over 3 million units is one of the fastest growing auto manufacturers in the world. HMIL has emerged as the second largest and the fastest growing car manufacturer in India. HMIL presently markets over 26 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata in the E segment and the Tucson and Terracan in the SUV segment. The company recorded combined sales of 215,630 during calendar year 2004 with a growth of 43% over year 2003. HMIL is India's fastest growing car company having rolled-out over 700,000 cars in just over 70 months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,700 corers. HMIL has recorded a staggering growth of 149% in exports over the year 2003. HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 150,000 units per annum, raising HMILs total production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment of $450-$500 million on its new integrated facility. HMIL is investing to expand capacity in line with its positioning as HMCs global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 146 to 180 this year. And with the companys greater focus on the quality of its after-sales service, HMILs service network will be expanded to over 1,000 in 2005.

5 |Page

Till 1980, Indian car market had just 2 models : Ambassador from HM Fiat Padmini from PA The GOI dictated as to what type of vehicle the 2 companies manufacture. should Reason GOI s decision to keep the car industry tightly protected. No other domestic or foreign co. was allowed to enter the industry. This affected the growth of industry. CAGR over 2 decades(1960-80) was just 3.5%. In 1980 GOI allowed a joint venture b/w Suzuki & MUL. In 1983, MUL launched a small and affordable car Maruti 800 at price of Rs 40K. This fuelled the growth of Industry. CAGR over 1 decade(1981-1990) was 18.6%. Finally In 1993, the GOI de-licensed the automobile industry and allowed entry of domestic and foreign car manufacturers.

Entered in Indian car market through its subsidiary HMIL in 1996. Before making its move, the companyClosely studied the industry for an year Talked to vendors, dealers and customers to get a thorough knowledge of the industry. Conducted a survey, where customers were asked to rank their preference for cars by the country of origin. HMC initially wanted to introduce Accent as its first car in India. However they ended up launching Santro as the first car. May26, 1996 HMC established its plant in Tamil Nadu , near Chennai @ 614Mn. Plant had a capacity of producing 1.2 lakh cars and 1.3 lakh engine trans. units PA. First foreign car manufacturer to establish a manufacturing unit .

7 |Page

HMIL s first car, Santro rolled out in record time of 17 months. Priced @ Rs 2,89,000 it was placed in B segment of the Indian car industry. Analysts did not predict its success, because they felt the car lacked an elegant, appealing look, moreover the B - segment was dominated by Maruti zen at that time Contrary to expectations, Santro became a selling car major success, selling 75,000 vehicles b/w April 1999 March 2000 becoming the largest in B segment. With the success of just one model, Hyundai became second largest automobile manufacturer in India, across segments

1. MARUTI SUZUKI 2. HONDA 3. TOYOTA 4. NISSAN 5. TATA MOTORS 6. VOLKSWAGEN 7. BMW (X1 IN COMPETITION WITH NEWLY ENTERED SANTA FE) 8. FIAT 9. CHEVROLET

9 |Page

HYUNDAI EON

Hyundai EON is undoubtedly a head-turner. With its un-interrupted flowing curves and strong character lines, its a car thats modern and stylish like nothing else. The familiar Hyundai hexagonal grille, the swept back headlamps, the half moon shaped tail-lamps along with other distinctive design elements increase the style quotient and make the Hyundai EON a design revolution.

SANTRO XING

The new Santro Xing sports stunning design changes which include refreshing exteriors and new look luxurious interiors. The new front radiator grille, the full wheel cover and the rear spoiler makes the new Santro Xing aesthetically more appealing and sporty. With metallic touches at multiple locations and plush new two tone beige and brown color scheme, the new Santro Xing adds elegance and style to the existing great looks.

11 | P a g e

HYUNDAI i10

1. The BSIV compliant 1.2 Kappa2 engine with VTVT achieved a spectacular fuel mileage of 20.36 km/liter 2. Best in class ARAI-certified fuel efficiency among petrol cars in India

HYUNDAI i20

The luxury hatch is hotter than ever in its new avatar with Uber Features, Uber Style and Uber Power. The all new i-Gen i20 is your ticket to the Uber Life with attention to detail that makes it not just a style statement but also a lifestyle stat

ACCENT
13 | P a g e

Hyundai Accent has been designed keeping in mind your expectations from a true luxury sedan. With its smooth blend of design, a zippy responsive engine and well appointed interiors, the Accent sure packs a lot more thrill into your driving. Accent offers all that a mid-sized sedan can pack and more.

HYUNDAI VERNA

Introducing the new Hyundai Verna - A car that redefines style, luxury and power. Following a fluidic sculpture design philosophy that seeks to create cars that are inspired by nature and are based on the natural rhythm of life, it harmoniously blends power with style. With uninterrupted curves and a Coupe like sporty profile, the new Verna engages your senses with its very presence. Offering sleek good looks, advanced technology and groundbreaking safety features, this Sedan is a cut above the rest, and a revolution ahead.

NEO FLUDIC ELANTRA

15 | P a g e

Its no longer lonely at the top with the Neo Fluidic Elantra to keep you company. With its world-class engineering and exceptionally elegant design, it complements your own inimitable style. Add to that a host of well thought of features, unparalleled craftsmanship, and you have a car that celebrates success like none els

THE ALL NEW SONATA

Theres Luxury. Then theres the All New Sonata, a masterpiece crafted with the ultimate in luxury and technology. Designed with the elegant and refined beauty of the orchid flower in mind, the New Sonata embraces Hyundais Fluidic Sculpture philosophy where smooth, flowing lines meet function like never before. Where opulence and efficiency come together to form a car thats more a work of art, than an automobile.

SANTA FE

17 | P a g e

They say its impossible to overdo luxury. The Santa Fe is as close as it comes to that possibility. From the sleek lines of the design, to the lavish interiors, this car spells luxury with every inch. Add to that groundbreaking technology and features and you have a car is truly wellappointed.

One of the most difficult marketing decisions facing companies is how much to spend on promotional John Wanamaker, the departmental - store magazine, said, "I know that half of my advertising is wasted but I don't know which half."
Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where, when how and at what prices. The products would be available.

Suppose you go to the market to buy soap. The shopkeeper suggests that if you buy two soap cakes, an extra soap cake will be given to you free of cost under buy 2 get 3 scheme. You feel attracted to buy as by doing so you are saving money on one soap. Moreover, soap is an item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product and it is quite different from what you have learnt in the earlier two lessons. Let us learn more about it in this lesson.

Meaning of Sales Promotion

Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about lakhpati bano, win a tour to Singapore, 19 | P a g e

30% extra in a pack of one kg, scratch the card and win a prize etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighboring markets notices of winter sale, summer sale, trade fairs, discount up to 50% and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as Sales Promotion. You have learnt about advertising and personal selling in the earlier lessons. Personal selling involves face-to-face contact with specific individuals, while advertising is directed towards a large number of potential customers. They also help in increasing sales of goods. Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for sales promotion. Personal selling can as well include communication of the incentives to individual customers. But, sales promotion differs from advertising and personal selling in terms of its approach and technique. Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market. Thus, sales promotion consists of all activities other than advertising and personal selling that help to increase sales of a particular commodity.

Objectives of Sales Promotion

You have learnt that the main objective of sales promotion is to increase sales. However, there are also some other objectives of sales promotion. The objectives are: i. To introduce new products ii. To attract new customers and retain the existing ones iii. To maintain sales of seasonal products iv.To meet the challenge of competition Let us learn about these objectives in details. (i) To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new Customers to buy the product. (iii) To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., Which are used only in particular seasons? To maintain the sale of these types of products normally the manufacturers and dealers give off-season discount. For example, you can buy air conditioner in winter at a reduced price. Similarly you may get discount on winter clothes during summer. (iv) To meet the challenge of competition: Todays business faces competition all the time. New products frequently come to the market and at the same time improvement also takes place. So sales promotion measures have become essential to retain the market share of 21 | P a g e

the seller or producer in the product-market.

Tools of Sales Promotion

To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion. (i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers. (iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500 or exchange your black and white television with a colour television are various popular examples of exchange scheme. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. Rs. 2 off on purchase of a lifebuoy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal

tea, Rs. 1000 off on cooler etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products. (vi) Fairs and Exhibitions: Fairs and exhibitions may be organized at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. International Trade Fair in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a well-known example of Fairs and Exhibitions as a tool of sales promotion. (vii) Trading stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value. (viii) Scratch and win offer: To induce the customer to buy a particular product scratch and win scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers.

23 | P a g e

(ix) Money Back offer: Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market. Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 3050% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a low and high spending companies can be found.

Deciding on the promotion mix

Companies face the task of distributing the total promotion budget over the five promotional tools :

Advertising
Sales Promotion Public Relations and Publicity Sales Force Direct Marketing. Whatever method a company adopt for promoting its product it must be from above mentioned method.

Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is

the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where, when how and at what prices. The products would be available.

Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity : 1. Mass impersonal selling methods (Advertising). 2. Face to face personal selling (Salesman ship). 3. Activities other than personal selling and advertising such as point of purchase display (P.O.P.) show and exhibitions, demonstrations and other non securing selling efforts. This form of activity is called Sales Promotion. There are two type of promotion blends :1. Pull Blend. 2. Push Blend. Both of these are closely related to the channel of Distribution. 1. A pull blend is one in which mass impersonal, sales efforts are given the greatest emphasis. The purpose of pull blend to pre-sell to the final consumers. So that they demand the product at the retail level of distribution. The firm adopting this strategy would spend more on 25 | P a g e

advertising and sales promotion rather than in personal selling. These efforts pull down the product from the manufacturer. 2. A push blend emphasizes personal selling. Naturally firms adopting this method develop a strong sales force at both the distributor and the dealer level. This method would tends to push the product through the channel of distribution.

Promotion and Selling

The term promotion is very often used as a synonym for selling. But selling is a narrow term which includes only transfer of title or personal selling. Promotion on the other hand is broader in its outlook and includes a variety of activities used ultimately for increasing sales volume.

Promotion and Sales Promotion

Similarly the terms sales promotion can not be taken to mean what is commonly does. Sales promotion, is only a part of the promotion. Basically promotion is an "exercise" in information persecution and influence. Promotion has come to mean the over all co-ordination of advertising selling, publicity and public relations. Promotion is a helping function designed to make all other marketing activities more effective and efficient. But sales promotion as such helps only the selling activity still, there exit same difference of opinion on the real connection of the term sales promotion.

Sales Promotion and Advertising

There is no universally accepted distribution between these two terms. To same advertising includes all forms of mass media communication directed towards influencing the end consumer. Sales promotion on the other hand, includes the form of mass communication directed towards information and influencing the channel of distribution (e.g. distributors, retailers etc.). Hence a price of product literature distributed by retailers in sales promotion. These sales promotion merges on one side in to advertising and on the other in to personal salesman ship. It is concerned with the dissemination of information to whole salers, retailers, customers (both actual and potential, and to the salesman). Sales promotion is concerned with the creation. Application and dissemination of material and techniques that supplement advertising and personal selling. Sales promotion makes use of direct mail, catalogues, trade shows, sales contests, premiums, samples, windows displays and other aids. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand to make consumers more eager to buy that brand. Personal selling and advertising do include prospects to make these decisions. Sale promotion provides an extra stimulus.

The various schemes of sale promotion at Consumers Level may include

27 | P a g e

 Coupons (A Chit of Stated Value)

These are given directly to the consumer these coupons are in most cases kept inside the package. The consumers many receive a price reduction of the stated values of the coupon at the time of purchase. The retailer receives reimbursement for the value of the coupon form the manufacturer. Coupons act as a short run stimulus to the sale of the product, since they are directly tied with the purchase of the item. They encourage the retailer to stock the product. What is important is that a coupon offer does not spoil the named price of the brand nor does it un pair the margin of the dealers. But it is not easy to measure the effectiveness of a coupon offer. One over knows how many customer would have bought the product without the incentive. It is also difficult to find out how many customers were held after the coupon offer expired.

Price-off-offer (Also known as bargain offer price packs)

This offer is intended to stimulate the sales during a slump season. In this method the customer is offered a reduction from the printed price list. It is also used when a substitute for competing product enters the market. Many experts on sales promotion fed that Off Schemes are among the weaker and less desirable methods of promotion. These can be trade resentment particularly when the retailer raises the price to retain his margin. Secondly that is not conductive to building up brand loyalty. Consumers may simply shift to the products that offer this scheme.

Samples

In the hope of converting a prospect into a customer a sample (Some demo classes of the training) may be given. This helps the consumer to verify the real quality of the product. Various pair manufacturing companies offer this method. For developing brand loyalty this method is quite useful. Sampling is a fast method of demand creation because one knows the result as soon as the consumer has had time to use the sample and buy the brand.

Disadvantage of Sampler
Offering sample in quit expensive. There is the cost of producing samples. The distribution costs are also high. Sample have to be mailed to potential customers or to be distributed through retail shops. There are also problems when the real product does not resemble the sample supplied.

Money Refund Offer

An offer usually stated on the package is that manufacturers will return with in a stated period part or all of the purchasers money if he is not completely satisfied with the product.

Trading Stamps
A premium in the form of stamps is given by the sellers to consumers while selling goods. The number and value of stamp that the buyer receives depends on the values of the purchase. These stamps are redeemable through premium catalogues at the stamp redemption centres.

Buy-Back Allowance
29 | P a g e

This an allowance following a previous trade deal not offer a certain amount of money for new purchases based on the quantity of purchases on the first trade deal. It extends the life of a trade deal and helps to prevent part deal sales decline. It greatly strengthens the buyers motivation to co-operate on the first deal.

Premium
There are various forms of premiums provided by the manufacturer as sales promotional devices :(a) Coupons are supplied for effecting price reductions. (b) Factory in pack premium these are popular in the case of Body food and Tin food items, Spoons, Cups, Measuring, Glass etc. and such other items are packed with the product in the box itself. Factory in pack premium are particularly goods for product meant for children. The Binaca Toothpaste packs contain animal shape toys. These are very attractive and qutie popular among the children.

(c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the buyers pays for it he has to pay only a considerably low price for the premium. This is possible for the manufacturer purchases the items in bulk at a premium and his cost per unit as is substantially low.

Other Steps by Manufacturer for Promoting Sales

Dealers can be helps in different ways

1. Communicating Market News:Often this service is reciprocal the manufacturer may acquaint his dealer with the fact relating to his production and prices while the dealer may familiarize him in return with the information bearing on charges in the consumer's demand, their like and dislike complaints and criticism, substitutes etc

2. Inviting to Sales Conference and Convention:The gestures of regard and respect pave the way for better relation and co-operation.

3. Offering Reasonable Terms of Sale:Of all the forms of encouragement, the monetary incentive evokes immediate response. Hence every producer must offer the most responsible terms of sale such as longer periods of credit and higher rates of descants.

4. Supplying suitable packages and useful things.

5. By taking the return back. 6. By furnishing them with sales literature and display materials.

Aggressive Selling
31 | P a g e

 Meaning
Goods are produced for market. Manufacturers have to make efforts to sell all they produce. When the manufacturers use various sales efforts to obtain increased sales volume for his product it is called aggressive selling or offensive selling. The sales efforts which a manufacturer makes to retain his customers i.e. to protect his already established market against against his competitors is termed as defensive selling. In contrast to this aggressive selling is concerned with the sales efforts made with the express objective of selling more by expanding the market for the product of the selling firm.

Method of Aggressive Selling

 Sales promotion efforts use for aggressive selling may be divided in two classes
1. Trade Promotion. 2. Consumer Promotion.

Trade Promotion
Under trade promotion methods special incentives are offered to the trader to buy products of the firm. Such incentive may take one or more of the following firm :(a) Cash Allowance :A definite percentage of discount is allowed on the purchase of given unit of a product. (b) Extra Product :Instead of giving any cash allowance extra product is given with each unit of product ordered. For instance if a box normally contains 20 Cakes of Soap, special box contains 25 cakes may be made and sold at the same price as that of the box of 20 cakes. (c) Gifts :Various gifts are awarded in return for an order of a particular magnitude.

Consumer Promotion
33 | P a g e

Under consumer promotion method special incentives are offered to the consumers to buy the firms product. The more prominent amongst such incentives are as following.

(a) Coupons :A coupon of a giving value is sent to the consumer. By presenting this coupon to the retailer consumers can purchase a particular product mentioned on the coupon at a reduced price. The retailer sells the products mentioned. In the coupon to such consumer (consumers presenting the coupons) under and agreement with the manufacturer at a price lower than the user retail price. Thus the consumer get the benefit of reduced price to the extent of the value of the coupons.

(b) Self Liquidating Offers :Under this system, the firm offers an article at an attracting price if the consumer send a given sum of money accompanied by a given number of box tops from the packages of a particular product the benefit to the consumer is that he receives the articles at a bargain price.

(c) Bargain Packs :Under this system a product is sold at a reduced price for a short period Bargain pack method encourages new consumers to try the product. It is also helpful in obtaining large displays in the shops.

(d) Sampling :The method involves giving the product or a small quantity of the product to a consumer free with the hope that the customer will be favourable impressed with its actual use and will eventually become a regular purchaser of the product.

A firm selling new product or an extensively improved product finds this methods useful. Also a firm whose market is hold by competitors whose free sampling almost expensive. The above mentioned methods may be reinforced by adopting. (i) Direct method of selling through. (ii) Offer of door to door selling. (iii) Hire purchase and installment payment methods of selling and by forming combination. Other Methods of Aggressive Selling :(i) Employment of Missionary Salesman also known as Promotional Salesman. These salesman call upon retailers and aggressively promote a product. (ii) Instead of using wholesalers, the firm may develop its own sales force to call directly on retailers. (iii) The firm may follow a compromise method by employing a manufacturers agent and giving him a large enough commission to encourage him to sell product intensively and aggressively. (iv) New territory exploitation sales promotion has a particularly important role in developing the companys product in new territories. (v) Increment and promotions. (vi) Letters to dealer and Customer. In fact, an ingenious sales manager can devise any number of incentives schemes for promoting the sales volume.

35 | P a g e

37 | P a g e

* *

1. The threat of new entrants In most markets, the capital and expertise needed to setup an auto or parts manufacturing facility, would be a great enough barrier to entry to prevent many new entrants from setting up.

However, given India's incrediable growth forecasts, infrastructure progress (especially new and better roads), and ever-expanding financing options to rural residents, the market is attractive. As such, we expect the threat of new entrants to be high.

* *

2. The bargaining power of buyers/customers Buyers in India have a wide variety of choice. There are more than 20 foreign manufacturers selling in India (including ultra high-end such as Rolls-Royce and Lamborghini). Of course there are also a plethora of incredibly cheap choices, like the famous Tata Nano.

* *

3. The threat of substitute products India is famous for its two-wheelers (bikes and mopeds) and threewheelers. These are very real and obvious threats to auto manufacturers.

* *

4. The amount of bargaining power suppliers have It is likely that the suppliers to the manufacturers have considerable bargaining power. They are not held ransom by one single manufacturer as they can market their products to any of the others in India.

39 | P a g e

* *

5. The amount of rivalry among competitors High. The industry is not yet in its shake-out phase and is still struggling to find the up-and-coming stars and possibly topple the leaders.

India's auto industry is much like China's, as far as Porter's Five Forces is concerned. Like China's, the P5F analysis ignores the massive future prospects which could indeed render this analysis irrelevant.

* *

Political Conditions Hyundai entered India when liberalization was at its peak. As a result, everyone was very open to the idea of foreign companies setting up base in India.

The government insisted on the Companies using 70% local content in the manufacture of the cars as they would have generated tremendous revenue for India. Hyundai achieved this in a very short time.

Change in government policies in recent times like opening of FDI in various segments has given a thrust to Hyundai initiatives in India like opening of its R & D centre in Chennai.

A positive EXIM policy also has helped HMIL to boost its topline with Exports of Santro to other countries.

* *

Economic Conditions The economic conditions during the launch of Hyundai were very relaxed and liberal. Hyundai was launched when the country had just opened its doors to liberalization. So there were no strict norms or bylaws that the company had to adhere by.

The resources available in India were utilized by the multinationals, which generated considerable revenue for the government.

A booming banking sector and a phenomenonal growth in Auto Loans market has made Santro more affordable.

Social Conditions

41 | P a g e

A rise in Middle class and concept of small nuclear families has propelled a demand of B-Segment cars. Hyundai Santro provides an exact choice for this demand leading to its high growth.

An average Indian was bored with the same Maruti 800 as his first car and Santros positioning as ones first car has led to Hyundais success.

* *

Technological Conditions Hyundai is a fairly new company in India. As a result when it started out in India it started out with the best of machinery. So, the quality of products was several times better than what was available at that time. This resulted in the acceptance of Hyundai as a technologically superior company in the minds of the people.

Since Hyundai manufacturers everything from the smallest of screws to the biggest of machines in its factory it is able to maintain the efficiency of the machines. Hyundai therefore manufactures cars under best of conditions with the best of machinery. As a result, the cars manufactured are of top quality.

Introduction
The car at first glance resembles a styling pastiche derived from Honda, Fiat, BMW and a few other manufacturers, can easily be forgiven. Once inside the car and with express orders to drive it, the styling puzzle tends to become a lot less significant. And the adage about imitation being the most sincere form of flattery springs to mind.This section takes you through the marketing plan for Hyundai Pa. ''Hyundai Pa will bridge the gap between Santro and Getz, giving customers more options within the Hyundai family''. Hyundai Pa will be a hatchback aimed squarely at the new Zen Estilo from Maruti. Hyundai is also said to be working on a oneliter diesel engine for Pa, which may just prove to be a good strategy to take on Maruti with. It will be a true 'Value-for-money' product and will be available in varied colors suited to the Indian market.The company's

under-development compact car, code named project PA, will also be exclusively made and exported from India. Hyundai exports Santro and Accent models from India.

Situation Analysis
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 20 variants of passenger cars in six segments. The Santro and Pa in the B segment, Getz Prime in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 % over CY 2005. In the domestic market it clocked a growth of 19.1 % a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 %, with exports of 113,339 units.HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL is setting up its second plant, which will produce an additional 300,000 units per annum, raising HMIL's total production capacity to 600,000 units per annum by end of 2007. HMIL is investing to expand capacity in line with its positioning as HMC's global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 183 to 250 this year. And with the company's greater focus on the quality of its aftersales service, HMIL's service network will be expanded to around 1,000 in 2007. The year 2006 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 300,000th export car. Hyundai exports to over 65 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step 43 | P a g e

up its foray into new markets. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

Product
Launched their first B-Segment Car SANTRO .This was a newly designed product for Indian Market .It had much better features than its competitor car had I. e .ZEN from MUL .Special Features were added like AC, Heater, Power steering, Power Windows, and Central Locking .In Oct 1999, They launched ACCENT targeting the Segment category .Accent had technology and Luxury Of Japanese Mitsubishi Lancer .Accent was launched in both Petrol and Diesel Versions. It rapidly became 3rd in terms of Market Share .Later In 2002 they launched Sonata for DSegment category .In May 2003 due to increase in competition and Price wars they came up with a Improved version of Santro known as Santro Xing. In April 15,2004 they launched Elantra so as to make the DSegment more accessible. In Mid 2004 HMIL became the second largest company with its 4 models Santro, Accent, Elantra, Sonata with 19% Market Share. Finally They Launched Getz in 2004,for Upper B-Segment so that counter the competition imposed by Wagon-R. And Then Now They have come up with i-10 and i-20and Hyundai Accent Executive

Price
They launched Santro at Rs 2,89,000 much below Zen which was priced at Rs.3,45,000. They had kept there pricing Based on Customer Value.Perception. Accent was priced at Rs. 5,35,000 much below what Lancer was Priced at Rs.7,80,000 targeting C-Segment.They launched Accent CRDi at Rs. 7,25,000 much below any one would have expected.Experts commented CRDi technology is a Leap not a Step .They launched Sonata at Rs.16,00,000 which was again priced below Honda Accord which was priced at Rs.17,00,000.Launched Elantra at Rs.8,69,000 so as to fill up thegap between C and D Segment. It also competed in terms of Value for Money with Toyota Coralla , SkodaOctavia, And Optra. They launched Getz at a price of Rs.4,30,000 so as to have a car between Santro and Accent targeting Upper B-Segment.

45 | P a g e

Place
They had chosen India for a Number of reasons: 1. The Indian Economy liberalized and Indian. Government De-Licensed the automobile Industry. 2. India had a huge growth potential. 3. Rural Market was Untapped. 4. There was only one player in the market MUL which had cars for BSegment. Therefore on May 26,1996 they opened there plant in Irrun gattukottai Near Chennai at a cost of 614 million dollars. It had a capacity to produce 1,20,000 cars and 1,30,000 engine transmission .It got the first mover advantage as it became the first foreign company to set up its Manufacturing Unit in India. Cost of labour is also low in India.Low Manufacturing Cost. Selected Dealers who could react fast to changing market needs. In Mid-2003 HMIL decided to Tap Rural Market .They had less capacity of production in India as compared to MUL.

Promotion
Since it was a new Brand they emphasized more on Promotion Santro promotion was handled by Saatchi & SaatchiSantro was Promoted in 4 phases as explained by the videos. It was a campaign that used Humor to remove ignorance about Hyundai. They also launched a New Customer Satisfaction Campaign Promotion of Accent was done more by Print Media than on Television. Accent was positioned with a baseline The Next Step. Accent Promotion was handled by Grey Worldwide India They used film celebrity again like Pretty Zinta and ShahRukh Khan for promotion of the new version of Santro Xing The Sunshine Car. They conducted Various Road Shows in Rural Market to promote Santro. Accent Advertisement showed a Young man driving Accent CRDi. In order to promote there brand more they tied up with PNB for financing of there cars.

47 | P a g e

 Strengths
The Quality Advantage Hyundai owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study). The Santro was chosen the best in the premium compact car segment and the Getz in the entry level mid - size car segment across several parameters. This study measures owner in terms of design, content, layout and performance of vehicles across several parameters. A Buying Experience Like No Other Hyundai has a sales network of 250 state-of-the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve higher nameplate in the J.D. Power SSI Study. Quality Service across 1036 Cities In the J.D. Power CSI Study Hyundai scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.The 92% of Hyundai owners feel that work gets done right the first time during service. The J.D. Power CSI study also reveals that 97% of Hyundai owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

 Weaknesses
Commodity Price Risks Hyundai commodity price risks to higher costs due to changes in prices of inputs such as steel, aluminum, plastics and rubber, which go into the production of automobiles.In order to mitigate these risks, the company continues to attempts to enter into long term contracts based on its projections of prices. In a volatile commodity market, where your company gives top priority to ensuring smooth availability of inputs, long term contracts are helpful. They also help minimize the impact of growing input prices. Conversely, long term contracts dilute the benefits, if any of a decline in input prices. Exchange Rate Risk The company is exposed to the risks associated with fluctuations in foreign exchange rates mainly of import of components & raw materials and export of vehicles. The company has a well structured exchange risk management policy. The company manages the exchange risk by using appropriate hedge instruments depending on the prevailing market conditions and the view on the currency.

Opportunities
Leading Growth As the market leader, company led the growth in the passenger car sector last year. Hyundai sales went up 30% to 4,72,000 units. This, as I said earlier, is the highest annual sale since company began operations 20 years ago. Hyundai also gained market share, mainly on account of its performance in the competitive A2 segment where it increased its share from 40.3% in 2005-06 to 47.7% in 2006-07. The record sales performance was reflected in the financials. Net Sales (excluding excise) grew by 31% 49 | P a g e

to Rs 93,456 million. Operating Profit Margin increased from 0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax jumped 270% to Rs 5421 million.

Threats
Risk Factors In the course of its business, Hyundai is exposed to a variety of market and other risks including the effects of demand dynamics, commodity prices, currency exchange rates, interest rates, as well as risk associated with financial issues, hazard events and specific assets risk. Whenever possible, we use the instrument of insurance to mitigate the risk. Business Risks The automotive industry is very capital intensive. Such investments require a certain scale of operation to generate viable returns. These scales depend on demand. Although 2005-06 was year of continued growth for the Indian economy, whether this growth momentum will continue has to be seen.

Threats from Competitors

Maruti Udyog Limited For the fiscal year ended December 2006, Maruti generated revenues of $193,517 million, an increase of 4.3% from the previous year. The company reported a net income of $2,805 million for fiscal 2005, down 26.6% from the previous year. Tata Motors Limited

In the 2006 fiscal year, Tata Motors generated revenues of $3,542.2 million (INR154,935.2 million). The company made a net profit of $185 million (INR8,103.4 million) in the 2006 fiscal year.

Marketing Strategy
Objectives
First year Objectives: We are aiming for 5% market share of the Indian market through unit sale volume of 100000.Second year Objectives: We are aiming for 10% market share of the Indian market.An important objective will be to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary.

Target Markets
Hyundai Pa's marketing strategy is differentiated marketing. Our primary consumer target is middle to upper income professionals who need true value for their money and comfortable ride in city conditions. Our secondary consumer target is college students who need style and speed.Our primary business target is mid sized to large sized corporates that want to help their managers and employees by providing them a car for ease of transport. Our secondary business target is entrepreneurs and small business owners who want to provide discounts to managers buying a new car.Each of the four marketing strategies conveys Hyundai Pa's differentiation to the target marketing segments identified above.

51 | P a g e

 Positioning
Using product differentiation we are positioning the Hyundai Pa as the most versatile, convenient, value added car model for above target market used. The marketing strategy will be focused on promoting the car as economic car for the next generation.

Strategies Product
Hyundai pa is fully loaded and will be sold with 3 year warranty. We will also introduce a diesel/CNG/LPG version of Hyundai Pa in the near future. Also the high end model will have an option of GPS system.

The project report on the seals promotion technique of automobile company industry as well as HYUNDAI MOTOR INDIA LTD.(RUDRA HYUNDAI). of Durgapur is being dedicated to my beloved father & mother. While undergoing my training at HMIL I had the opportunity to be conversant with the practical activities of the company. I have carefully studied the history and background of sales and promotional activities and other organizational aspects of the company such as its administrative strategy, its dealings/interactions with customers and its promotional activities etc. I have acquired some practical experience and gathered some knowledge of how to deal with decision making aspects and marketing management.

Although I have gathered requisite knowledge of management skills, I am confident of applying such acquired knowledge in practical fields in the environs of industry.

53 | P a g e

1. Rudra Hyundai Address: Bamunara, POLICE STATION KANKSHA,NH-2, Opp- EPIP Plot, Durgapur, West Bengal, 713303

2. Hyundai India website http://www.hyundai.com/in/en/main/

3. Wikipedia http://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited

4. http://hyundaiindia.net/main/main.aspx

6. Marketing Managemnent (Philip Kotler)

What are major sales and promotion techniques taken by HMIL? Who are the major threats to the HMIL? What is the most popular Brand of HMIL in automobile market? What are the corporate social responsibilities of HMIL? Is the global automobile companies are threat for the Indian automobile companies? What are the new features and technologies they will launch in there future cars? What are the present and future aspects OF HMIL? What are the major strength and weakness of global automobile industry as well as HMIL?

55 | P a g e