Hyundai New Product Development

new THINKING new POSSIBILITIES
Group 5 Section B Lokesh Ankit Sagar Shivani Meghna Rahul D
INDIAN AUTOMOTIVE INDUSTRY

Largest growing industry and seventh largest in the world Growth rate of 16-18% Nearly 30,00,000 Cars are sold in the previous year In 2010, 28,14,548 Cars are sold
INDIAN ECONOMY
4th largest in the world It accounts for approx. 4% of the world's GDP
Expected to grow by 7.5% in 2011-12

India's tax revenue to GDP ratio is 10% Tax free annual income limit has been raised to Rs. 150,000*
*http://knowindia.net/
Source: http://www.motorbeam.com/sales-figures/august-2012-sales-figures-analysis/
OPPORTUNITY SCAN
A car with a diesel engine in the range of Rs 3.2 4 lacs targeting middle income professionals and college students A 700 cc diesel engine which has a maximum output of 16 hp @ 3200 rpm, with a peak torque of 37.5 Nm @ 2000 rpm can be used which is currently being used in Tata Ace
Indian Economy is expected to grow by 7.5% in 2011-12

The domestic sales is increasing at an average rate of 19.1%
Segmentation
Behavioural segmentation: To identify what keeps prospects away from buying and develop a strategy that makes customers to part with their hard earned money. Geographic segmentation: The product should be first launched in Metros and Tier I cities where Hyundai has better distribution network. Over a period of time Hyundai should launch the product in Tier II and Tier III cities as Hyundai has the largest network of showrooms and service station next to Maruti in India. Demographic segmentation: College going students in the age group of 18 24 years old. Young professionals in the age group of 23 27 years old earning a salary in the range of Rs 5 7 lacs .
VALUE PROPOSITION
Easy to maintain Driveability Low cost, more mileage will make Hyundai- Novus deliver superior value to the customers. Value-for-money proposition As the price of the car is lower than its competitors and no other car with diesel engine exists in this price range. The car would be suitable for college students and middle income people. First mover advantage of having a 700 cc diesel engine in a car.
MARKET STRATEGY
Market Penetration Strategy
Low Price Policy 3 Year/100,000 kms warranty
Marketing Mix
PRODUCT PRICE PROMOTION
PLACEMENT
Low cost car in diesel segment, with great design Smartly priced (3.2 4 lac), within reach of the target consumer
Brand ambassador Irrfan Khan Continuous brand building
Existing service network and distribution channel, making the product easily available
PRODUCT CONCEPT DEVELOPMENT

IDENTIFICATION OF OPPURTUNITY
Diesel car in the price range of Rs. 3.2 4 lacs
SELECTION OF TARGET SEGMENT
The middle income group
VALUE PROPOSITION
Low cost diesel vehicle with a mileage of 16 kmpl
Hyundai Product Line

Line
L1
Type
Passenger Car
Segment B
Segment C
Segment D
Petrol Variant
Diesel Variant Verna Fluidic
Petrol Variant Santro Xing
Diesel Variant I10 Petrol Variant
C(1)
C(2)
Diesel Variant Elantra
Eon
I20
LPG Variant
Petrol Variant Verna Fluidic
Elantra
Sonata
Accent
Accent
Contd.
L2
Line
Utility Vehicle
Commercial Vehicles
Type
SUV
Santa Fe
PRODUCT LIFE CYCLE
Funnel Concept
Hyndai NOVUS
Diesel car in the price of 3.2 4 lac Low cost SUV, Novus, Traveler
Product Developed and marketed in stages
ANSOFF MATRIX
Existing Product New Product
Market Penetration
Hyundai Nuvos
Existing Market
Hyundai Commercial Vehicles Hyundai Utility Vehicles New Market
Diversification
PRODUCT DEVELOPMENT
Research & development and innovation Detailed insights into customer needs (and how they change) Being first to market We are coming up with a new product which is not part of our product portfolio . This is product would be launched in Indian Market first. It is a diesel variant at a 700-850 cc range. This basically meant for urban nuclear families.
MARKET PENETRATION
Secure dominance of growth markets Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors Increase usage by existing customers for example by introducing loyalty schemes
As far as our product is concerned we would like to also promote it as a commercial carrier/fleets.
DIVERSIFICATION
This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. However, for the right balance between risk and reward, a marketing strategy of diversification can be highly rewarding. As of now considering the Economic senario we would not like to go for this strategy.
MARKET DEVELOPMENT
New geographical markets; for example exporting the product to a new country New distribution channels (e.g. moving from selling via retail to selling using e-commerce and mail order) Different pricing policies to attract different customers or create new market segments. As of now Hyundai Motors India limited does offer any product apart from passenger cars . In future we would like push our commercial vehicles which are doing good in other markets into Indian market. Also segment E has no product as far as India is concerned.
NEW PRODUCT TO BE LAUNCHED
IDENTIFIED
From the PLC analysis the following has be decided.
Initial Launch: Basic version of Hyundai Novus After Six months: New Variants in Hyundai Novus are launched into the market
POST LAUNCH INITIATIVES

Analyzing the current portfolio of HMIL it is very clear that there are certain segments which Hyundai does not cater to are segment A, segment E ,diesel cars for segment B. The need for the hour in the current scenario is a Diesel car for segment B and if possible in A.
Main focus as of now is Hyundai Nuvos .This are also budget constraints as far as launch of new products is concerned.
We have other products to launched in some duration, first of which would be SUV in the price range of 9-12 lakhs. Next inline would be a Hyundai Traveller.
POST LAUNCH INITIATIVES CONTD

Launching different variants 1. Hyundai Novus Basic (with A/C) 2. Hyundai Novus PW(with power windows, A/C) 3. Hyundai Novus XE (power brakes, power windows, A/C) 4. Hyundai Novus ZE (power brakes, power windows, A/C, central locking, audio system)

Multi channel marketing Digital Marketing
Sports sponsorship

Feedback
Sales force
Customer
Online feedback
Surveys

Check market reaction
If negative If positive
Tweak features keeping core value same
Retain the features
NEW PRODUCTS FOR LAUNCH
Hyundai Traveller (Automatic Transmission)

Segment
Fleet/Taxi Segment (26 seater and 15 seater)
Opportunity
Tempo traveler which travels in the city to pick up people from various destinations during peak and non-peak hours. The clutch is really heavy but needs a lot of effort to press in it.
Value
Hyundai Traveler with Automatic Transmission Gearless travel, reduces lot of effort on part of the driver
Hyundai - Potestas
Segment Upper middle class people, looking for an SUV Opportunity Existing SUV's which are in the price range of Rs. 7-10 lacs, have very less rear seat space and very poor looks, poor interiors and very less ground clearance Market value for SUV segment grew at 58% in the first quarter of 2012 Value Large space enough to transport a family Good ground clearance 220mm - capable to take on the worst of Indian roads, boot Space - 675 liter capacity, twin Tube Shocks of "Rancho, improved interiors

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What are the opportunities identified for new vehicle launches by Hyundai Motors India Limited?

What are the opportunities identified for new vehicle launches by Hyundai Motors India Limited?

What are the different market segments identified for potential new vehicles?

What are the different market segments identified for potential new vehicles?

new THINKING new POSSIBILITIES

Group 5 Section B Lokesh Ankit Sagar Shivani Meghna Rahul D

INDIAN AUTOMOTIVE INDUSTRY

Expected to grow by 7.5% in 2011-12

Indian Economy is expected to grow by 7.5% in 2011-12

Brand ambassador Irrfan Khan Continuous brand building

PRODUCT CONCEPT DEVELOPMENT

Diesel car in the price range of Rs. 3.2 4 lacs

SELECTION OF TARGET SEGMENT

The middle income group

Low cost diesel vehicle with a mileage of 16 kmpl

Hyundai Product Line

Petrol Variant Santro Xing

Diesel Variant I10 Petrol Variant

Diesel Variant Elantra

Petrol Variant Verna Fluidic

PRODUCT LIFE CYCLE

Product Developed and marketed in stages

Hyundai Commercial Vehicles Hyundai Utility Vehicles New Market

NEW PRODUCT TO BE LAUNCHED

POST LAUNCH INITIATIVES

POST LAUNCH INITIATIVES CONTD

POST LAUNCH INITIATIVES CONTD

POST LAUNCH INITIATIVES CONTD

POST LAUNCH INITIATIVES CONTD

Tweak features keeping core value same

Retain the features

NEW PRODUCTS FOR LAUNCH

Hyundai Traveller (Automatic Transmission)

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