INTRODUCTIONThe Hyundai Motor Company is one if not the most dynamic automobile producer in any developing country.

This is remarkable considering that the company is closing in on 40 years of existence. To outline its history one must also look into the life and times of its founder Chung Ju-Yung. It cannot be told without outlining the founders rise from the rice fields of Korea to the circumstances that let him to acquire the knowledge and determination that led to the creation of one of the fastest growing family owned businesses into a global competitor. His creation of numerous companies eventually let to the establishment of the Hyundai Group. The Hyundai Motor Company was one of these. It has already become a major global player with plants and dealerships that span six continents. The company is one of the largest and most diversified business organizations with 45 affiliated domestic companies and 254 overseas companies in nearly 200 countries. The Hyundai Motor Company is but one which the Group is active in such as shipbuilding, steel, petrochemicals, heavy machinery, aerospace, electronics and financial services. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC). HMIL is the largest passenger car exporter and the second largest car manufacturer in India. It currently markets nine car models across segments - in the A2 segment it has the Eon, Santro, i10 and the i20, in the A3 segment the Accent and the Verna, in the A4 segment the Elantra, in the A5 segment Sonata and in the SUV segment the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of advanced production, quality and testing capabilities. HMIL forms a critical part of HMC's global export hub, it touched 1.5 million in exports in March 2012. It currently exports to more than 120 countries across EU, Africa, Middle East, Latin America and the Asia Pacific. HMIL has been India's number one exporter for seven years in a row. To cater to rising demand the company commissioned its second plant in February 2008 having an installed capacity of 330,000 units per annum. To support its growth and expansion plans HMIL currently has 346 dealers and around 800 service points across India. In its commitment to provide customers with cutting-edge global technology, HMIL set up a modern multi-million dollar R&D facility in Hyderabad. The R&D centre endeavors to be a center of excellence in automobile engineering. 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 in the B segment, Getz Prime in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata in the E segment.
Product Portfolio

1. Hyundai Accent 2. Hyundai Getz 3. Hyundai i10 4. Hyundai i20 5. Hyundai Santa Fe 6. Hyundai Santro Xing 7. Hyundai Sonata Embera 8. Hyundai Tucson 9. Hyundai Verna

Critical Analysis of STP strategies for the Two Brands-

STP : Maruti Udyog vs Hyundai Motors India Limited

Segmenting: Maruti: The segments which MUL served ranged from A segment to the upper C segment. They had cars ranging from Maruti 800 to Grand Vitara. MUL had the highest market share in the B segment due to the number of models that it offered when compared to HMIL as it is largely influenced by Local Tastes and Economic scenario of its Consumers. HMIL: On the other hand, HMIL served segments starting from B to E. The cars which HMIL sold ranged from Hyundai Santro to Sonata. In this way, Hyundai catered to the upper class of the society as well. In the B segment, when compared to MUL, HMIL had only one car Santro whereas MUL had 3 models to serve the same segment Zen, Alto and Wagon R. Also from the case, it is evident that the B segment was the highest growing segment in the Indian auto industry and by having only one car to serve this segment, their overall market share was less when compared to MUL. This was even though Santro was initially the highest sold car in the segment. Targeting: Maruti: MUL initially targeted the Indian middle class by releasing the Maruti 800. This allowed them to capture around 85% of the market share. With the liberalization of the Indian economy, many other foreign companies also came into India. This forced MUL to come up with more models to serve different segments of the society. Currently MUL targets the Indian middle and upper middle class. HMIL: HMIL initially wanted to introduce a C segment car to target the upper middle class. However their surveys indicated that the B segment (and hence demand for smaller cars) was much more and hence they launched Santro to serve customers in the B segment. Initially HMIL targeted customers from 35-45 years. With the increase in competition from 2002 onwards, HMIL started targeting consumers in the age group of 25-30 years as it believed that the average age of car buyers had come down. It also targeted the luxury segments (D and E) where MUL did not have a presence. Our primary consumer target is middle to upper income professionals who need true value for their money and comfortable ride in city conditions.

Positioning:

Maruti: Initially the Indian market had 2 models Fiat and Ambassador, which were of inferior quality but high in price. With majority of the Indian population being in the middle class, MUL decided to position its first model (Maruti 800) as an affordable small car. This helped consumers to graduate from 2 wheelers to 4 wheelers. HMIL: HMIL marketing strategy focused on bring out the differentiating factors when compared to its competitors. Santro was initially positioned on the design aspect. Later on Santro was positioned itself as a complete family car. The brand was targeting those users who wanted to upgrade into the B segment. Hyundai This was when the target group of consumers was between 35-45 years. With the increase in competition in 2002, Hyundai repositioned Santro as a sunshine car in order to attract consumers from the 25-30 years segment. Sunshine was communicating two intangibles: Freshness and youthful attitude. The brand was moving to a " Change your life " positioning. With regard to the other models, Hyundai Accent was positioned as a next generation car and this was highlighted by its base line The Next Step. On the other hand, Hyundai positioned Sonata as a luxury/premium car and emphasized on the same with the base line Dreamt by everyone. Owned by a few.

HMILs Marketing Strategy (4 Ps )

Hyundai Santro PRODUCT Cars were considered as convenience options and compact cars. Looking forward to the Demographic classification in India, it was observed that the lower middle and middle income consumers generally are at this level. Hence, the product was designed to meet the needs of this segment of consumers. However, keeping in mind the volume of sales needed for breaking even, there was a need to provide additional features (add-ons) which can transform the car in to a luxury package to appeal to business class people and the youth. Positioning and promoting the product on the basis of the factors that motivate the consumers at this level of the hierarchy would prove an effective strategy. The base model of the all-new Hyundai Santro i.e. Santro LP was fully loaded with a range of exciting new features. Its unique design provides the car with more head room which allowed for easier entry and exit. Visibility became better with Santro as the drivers seat was higher. Also seating postures were improved by proper economic designs of the seats. In addition to these design features, a number of safety features like rear door locks for child safety, collapsible steerable column, and ultra high strength steel bars for protection against side collisions were also provided.

This provided a look of stability, a sense that it is packed with energy and ready to deliver a dynamic drive. It had features like heater, air conditioner and power steering. The next version of Santro i.e. Santro LE had additional features like central locking, back wipers, power windows, body colored bumper, remote tail gate release and tinted glass throughout the car. The most advanced model i.e. Santro GS has features like fog lamps, rear defogger, waistline molding, full size wheel cover in addition to those provided by Santro LE.

PRICE Hyundai decided to take Maruti heads on with the pricing of their upcoming Hyundai cars. The reason being that they believed that customers would not be reluctant to pay a bit more for value add. The base mode of Santro i.e. Santro LP was priced at Rs 2.89 lakhs whereas the next 2 models i.e. Santro LE and Santro GS were priced at Rs 3.49 and Rs 3.69 lakhs respectively. The idea was that Hyundai with their extensive service network and brand reputation for making reliable cars should get the customers nod over their competition. PROMOTION As the strategy would be creating brand awareness, an advertising contract with Saatchi & Saatchi was made, who then decided to use the Bollywood superstar Shah Rukh Khan. The first phase of the advertising campaign was an ad that concentrated on introducing the car by using humor to remove the ignorance. The second phase of the promotion concentrated on clearing any queries that prospective buyers may have had. This was done once again through an ad featuring Shah Rukh Khan. It mainly focused on highlighting the cars features. Also Hyundai promoted the car through their existing customer base by running a customer satisfaction campaign which televised existing customers experiences through ads. During the latter part of 2002, Santro was repositioned as a sunshine car to target younger consumers. Once again, new TV commercials were made to promote the repositioned Santro. On the other hand, to tap the rural market, Hyundai joined hands with dealers in rural areas and promoted Santro through road shows. Also to ensure that the rural consumers were aware of the quality (which was the USP), they also promoted through test drives. PLACE Santro was launched across India (both in urban and rural areas).

Hyundai Accent PRODUCT The new Hyundai Accent was claimed to be similar to the Japanese Mitsubishi Lancer in terms of technology and luxury. Areas where the car had the latest technology included remote controlled music system, engine immobilizer, keyless entry system etc.

Also in October 2002, a diesel variant of Accent was also released which was built using the CRDi technology. This allowed the car to be quieter and comfortable when compared to other diesel cars in India and this was attributed to its better engine. PRICE Price and Quality were the two most important factors looked upon by middle income consumers before they made a purchase. To ensure that the car provided a stiff competition, the car was priced at a lower price when compared to Lancer. It was priced at Rs 5.35 lakhs. This was to provide luxury to consumers at a more affordable price when compared to their competitors. PROMOTION Brand awareness and information about the new car were promoted more using the print media when compared to the TV which was preferred in the case of Santro. The idea was that as this was a higher valued product, they intended to focus on a particular part of the consumer segment. The ads were so developed to highlight the latest technological features being provided. On the other hand, TV ads were used to promote the diesel variant of the Accent. PLACE Accent was launched across India.

Hyundai Sonata PRODUCT The new Hyundai Sonata was technologically compared to the Japanese Honda Accord. The aim was to target higher income consumers and hence the strategy focused on the higher end technology that was used. PRICE To ensure that the consumers were attracted towards the car, Hyundai priced the car at a lower price (Rs 16,00,000) when compared to Honda Accord (Rs 17,00,000).

PROMOTION Brand awareness and information about the new car were promoted using TV advertisements. PLACE Accent was launched across India.

Strategies-

No heroes, no heroic moves, but pure strategies determine its success. The general of the organisation with his men devised good strategies and the artillery and the rank commanders in the marketing and sales departments implemented them religiously. The leaders in the market whether Maruti, Honda, Hyundai or any other Automobile Industry do not believe in springing surprises but displaying strategic winning moves. They not only give adequate warning before implementation, but also conquer indiscriminately and continuously There is no such thing as a good marketing strategy in the abstract. Good strategy is bad and bad strategy is good, depending on who is going to use it. In fact, offensive strategy is very much like defensive strategy, just that the usage is entirely the opposite. The psychological effect of an attack far outweighs any material damage inflicted. Whether the outcome of a battle is victory or defeat is more important than the casualty roll. Attacking does not merely consist of striking at the Competitor in full battle armour it must include the art of assailing the enemys mental equilibrium. The problem with attack is that it takes time. An attacker in a marketing campaign not only tends to sacrifice surprise but also wastes time in bringing the forces into action. Strategy adopted by HMIL Entry Strategy Prior to the presence of Hyundai Motors in India, the country had its own share of car providers ranging from Indian companies like Maruti Udyog Limited, Fiat to foreign players like Ford Motors, Toyota Motors, Honda Motors etc. So rather than just entering the market and then deciding on which segments to serve, Hyundai Motors did a careful analysis of the Indian automobile industry. This was done through discussions and surveys with dealers, consumers and vendors. It was only after analyzing these results did HMIL release its first car. This analysis helped them as prior to this, they had planned to release a car in the C segment but the analysis told them that the most profitable and growing segment was the B segment due to which they went ahead and released a car in the B segment.

Maruti-

In early 1980s Indian Govt decided to produce a small car, which would be within buying

reach of Indian middle class. Maruti rolled out its 1st car, Maruti 800 with 800cc engine in

December 1983. This model targeted at masses and was lanuched as Peoples car. In early 2003, Maruti Udyog, a joint venture between Suzuki and Indian Govt. dominated Indias

automobile market with 54% market share. Because of its early enterance into the Indian Market it still enjoys First-Mover Advantage and has Lions Share in the Automobile Market

Operation Strategy To ensure that they have maximum profits, HMIL focused on creating a low cost strategy. For this reason, they set up their own manufacturing plant in India to take advantage of the low labor and manufacturing costs. This was opposite to what the competitors were doing as they only had assembly units in India. Also in comparison to other car companies, HMIL entered India by starting its own subsidiary whereas other companies had entered through joint ventures with Indian companies. HMIL was able to provide higher quality cars at lower prices when compared to its competitors. This was as they were able to use better and the latest technology while at the same time were able to use the low cost labor and other manufacturing facilities available in India.

Maruti- In this respect not a great difference was being observed in its Operation at the Earlier stage but in the recent past it was first time in history that Maruti Dealers possed an Inventory of all time high of upto 15 months which led Maruti Suzuki to suspend petrol car production at Gurgaon plant on March 9,2013. All this was in respect to low Market demand preceeded by 8% monthly decline in Sales of Feburary,2013
Refer- ET Article dated 8 March,2013 Product Strategy While competitors imported their existing successful models from abroad for the Indian market, HMIL went against the trend by developing models especially for the Indian market. This allowed it to design cars suitable more for the Indian environment and hence Indian tastes. Also HMIL launched products in the segments where there was lesser completion from MUL (who at the time was one of the biggest competitor) i.e. in the D and E segment. This was through proper understanding of the Indian consumer requirements. Maruti- Earlier the strategies were hardly different from HMIL but over the time it took a

complete turn-about into it. Maruti Suzuki which controls slightly over half of the domestic car market in the country has said that it would design small cars suitable for the Indian conditions as a strategy to beat the stiff competition with the entry of global auto makers. It would be launching compact cars with more features to meet the needs of the customers locally. Maruti is also betting on a faster growth in the small car market as fuel prices trend upwards boosting demand for such models worldwide. The Indian small car market is set to witness a plethora of compact models being launched from its competitors.

Distribution Strategy
To ensure that Hyundai was able to react quickly to changing market needs, HMIL followed a formal and meticulous procedure for choosing dealers. The main criteria was to select dealers who would react quickly to changing market needs. The procedure included dealers having to give their educational background, financial background, notes on current future trends in the automobile industry etc. This elaborate procedure allowed choosing those dealers through a scientific procedure that were best suitable for a location. On the whole, HMIL followed innovative marketing strategies as they focused more on understanding what the consumers wanted and then promoting and placing their products accordingly. As an entry strategy Hyundai motors corporation (HMC) set up its subsidiary in India and named it Hyundai Motors India Ltd (HMIL). This was contrast to other foreign companies who entered the Indian market by forming joint ventures with Indian companies. HMC wanted to leverage upon the low manufacturing and labour costs in India. Hence it set up its own manufacturing plant at Irrungattukottai near Chennai. In contrast other companies only established their assembling units in India. HMIL used superior technology in its products, which gave it a competitive advantage over its competitors. As a result Santro and Ascent became the market leaders, although they were the sole products of HMIL in their respective segments. HMIL also widened its portfolio by introducing one product in each segment and also made sure that the product had a substantial market share in its segment. HMIL was the first company to introduce what became popular as the pricing based on customer value perceptions. Based on this strategy HMIL had introduced three models of Santro with varying features and different prices.

MarutiMaruti Suzuki India is currently focussing its distribution network to setup stock patio in different parts of the country to reduce delivery time to customers, while it looks to boost its sales force. Setting up stockyards for both finished products and spare parts at regional level is high on the agenda so as to reduce our transportation time, cost and mainly delivery time to customers. The company is directly negotiating with land owners for acquiring land and along with its dealers, will be increasing the strength of its sales force. Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189cities, 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 the No.1 nameplate in the J.D. Power SSI Study 2004. A t M a r u t i S u z u k i , yo u w i l l f i n d a l l yo u r c a r r e l a t e d n e e d s m e t u n d e r o n e r o o f . Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all your car related needs.

Promotional Strategies used

Maruti Suzuki-

Maruti dealers conduct various events at malls, at workshops and at near banks and government offices. They also give advertisements in local newspapers and distribute pamplets. Maturi focused its promotions strategy on targeting two-wheelers owners, by enter in new domains and reaching out potential customers through its True value'. In 2003, to attract customer Maruti launched novel offers like Change your life campaign and also offered vehicle insurance for just Rupee one only. In 2003, came out with a toy car advertisement that became popular for its simplicity.

Kya Karron Papa Petrol khatam hi hani Hota.

HyundaiDealers conduct cold callings i.e. calling old customers. They give advertisement in papers, conduct roadshows and conduct service checkup camps. Gives exchange offers. The marketing strategies of HMIL are superb for example HMIL is one the official partners of FIFAcup2004. Hyundai India presently markets 6 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna Transform, the A5 segment includes the Sonata Transform.

The recent Press release of Hyundai India explained that it is the largest passenger car exporter and it has reached a historic milestone with the sale of its vehicles, including exports, reaching 3 million marks. The occasion marked the announcement of several attractive schemes & promotions for all the existing and potential consumers of Hyundai India. They are planning to beat Maruti Suzuki in the upcoming years.

MARKETING STRATEGY OF TWO GIANTSANY COMMERCIAL ORGNISTION can succeed only if it is financially viable and also profitable. And profits flow from the market; from the customers. Marketing is the process of ensuring that sufficient customers conduct business with an organisation and come back for more, which alone will ensure its continuous profitability. Competition is the cornerstone for customer delight. It is the guarantee and passport for excellence in manufacture. It is the insignia and lapel pin, announcing quality and reliability of the goods and services which we buy. Few businesses enjoy a monopoly. What is more, competition does not go about its way by

carefully avoiding the company, or steering clear of it. Competition is there to get at it, to grab it, and clean destroy it. Their marketing efforts are designed to sell their products, and push the companys products into wilderness. Marketing is warfare, and competition deploys an ever changing armoury of weapons to secure an edge. Companies need to keep their eyes and ears open, always and every time, even to survive, leave alone succeed. There is no such thing as a good marketing strategy in the abstract. Good strategy is bad and bad strategy is good, depending on who is going to use it. In fact, offensive strategy is very much like defensive strategy, just that the usage is entirely the opposite. HMIL had its unique interacting methodology with its dealers, which gave HMIL a better understanding of the customers.

Korean car major Hyundai also did a great job when it attacke d Marutis reign, pitching the Santro against Marutis ever popular Zen. They challenged Zens mileage and value for money factor with the narrowest frontal attack. They simply concentrated on Santro being just as economical but with better technology. The result has been a resounding success with Santro sales at an incline. Although MUL maintained the top position in terms of total sales, the auto giant took a beating in terms of market-share, suffering an all-time low of 51 per cent -- a measly number compared to its over 80 per cent share for several years. Consider this: In January 2000, MUL could only claim a market-share of 51 per cent compared to the whopping 78.6 per cent for the same month in 1999 -- a drop of more than 27 percentage points. Unfortunately for MUL, the drop comes not in just one segment, but two -- the small car and mid-size segments. Maruti's loss is Hyundai's gain as the Korean company sold 7,402 units of the Santro while the Zen lagged behind with 6,337 units in January 2000. But Maruti Udyog Limited is iconic in India. Not only has the auto major positioned itself unerringly in the line of attack but has also shown remarkable audacity of attacking its own throne. It is quite astounding that Maruti has four mega success brands in the A segment the Maruti 800, Alto, Wagon R and the Zen. This bravery to attack itself not only gives Maruti great reputation but is also an obvious reason to continue being a market leaderforyears.

Such imposing strategies position one as an evergreen leader in the minds of the customers. During the lethal price war in the small car segment, when Hyundai with its Santro launched a severe attack on the countrys biggest carmaker, Maruti, the latter not only managed to consolidate its position vis-a-vis the Zen, against whom Santro was pitted, but also struck back by launching the Alto and the Wagon R in the same segment. The result has been a resounding accomplishment with each of these brands in the A category. Though Hyundai continues to try, Maruti has been successful in blocking most of the great competitive moves from the Korean automotive giant. From the customers viewpoint, Maruti is still numero uno in terms of economy and value for money. Maruti launched Wagon R in Feb. 2000 to compete with the Hyundai's Santro, Tata's Indica, Fiat's Palio in Indian market. It was a huge success at the time of its launch in month of Feb. and March with sales of approx. 8000 units but after that it bumped in the market which resulted in loss to maruti (in terms of profit after tax) for the first time in the history of more than twenty years and reduced market share to 48% from 50%. Later in 2001-2004 Maruti entered in four related businesses such as corporate lease and fleet management (Mid-2001), buying and selling of used cars (October 2001) auto finance (January 2002), car insurance (May 2002) to increase the market share. They also positioned the wagon R as a family car and emphasized on the features of the vehicle. In year 20032004 Wagon R growth rate was higher than Santro. In February 2005, Wagon R's sales were higher than the Santro's and in March the Alto stole, too, the Santro's thunder. Another brave leaders move in the automotive sector is that of Honda. Despite the astonishing success of the old Honda City, the company went ahead, innovated and attacked itself with the new look City. This one with very different looks, a less powered engine but with a lower price tag. The move has been the greatest strategic success in the C segment of the Indian automotive industrys history, effectively blocking moves from the GMs Optra, Marutis Baleno and Hyundais Accent and the Accent Viva. Such strategic courage is what determines the leaders and not any heroic moves.

Refer http://articles.economictimes.indiatimes.com/2012-1126/news/35364900_1_alto-small-car-car-segment

HISTORY OF HMIL STRATEGIESThe Price Cut

In August 2004, a leading business newspaper reported that Hyundai Motors India Limited (HMIL), an Indian subsidiary of the South Korea- based Hyundai Motors Company (HMC)3 was expected to reduce the price of its flagship car - Santro - by as much as Rs 40,000. Industry experts were expecting a reduction in Santro's price in response to the price war being waged by the market leader in India Maruti Udyog Limited (MUL),4 which had reduced the price of its largest selling car in the B segment Alto - by Rs 58,000 in two price cuts starting from September 2003. This move had resulted in Alto replacing Santro as the largest selling car in the B segment in the period January to June 2004 (Refer Exhibit I for the market segmentation of the Indian car industry). Rebutting the report on price cuts, HMIL's managing director, BVR Subbu (Subbu) said, "We are not cutting prices on the Santro. We have allowed our competitors the prerogative of cutting prices." 5 Several dealers of HMIL also felt that the company would not reduce Santro's price as it had not adopted such tactics earlier. Santro had been the most successful product of HMIL and was also the largest selling car in the B segment till the fiscal year 2003-04. Introduced in late 1998, Santro had emerged as the second largest selling car in India after MUL's M800 and had retained its position till March 2004 (Refer Exhibit II for the total units and value sales of the top eleven car models in India). In mid 2004, HMIL with its four models, Santro, Accent, Sonata and Elantra, was the second largest car company in India with 19% market share in the industry. The company was planning to launch another model, 'Getz', in September 2004.

SUGESSTIONSMaruti should more frequently come with mid-size models like sx4 and swift as this sedan model is doing very good in market.Maruti and Hyundai should come up with diesel model of mid-size cars as market survey says that the use of diesel cars will increase by 50% by 2010.Hyundai should try to increase their number of dealers and service stations so that customers can get better service.Both companies should try to build trust in customers as competition is increasing day by day.Company should try to give some good schemes and offers and discounts for old and new customers. Maruti should try to expand its range of cars from small car and hatchbacks to more mid-size cars like sx4 and swift mid size version. Maruti suzuki is good in its marketing strategy and shows good results. And as Maruti has its vast network of dealers and service centers they are able to provide good after sales services and are able to maintain good relationship with customers which is their strongest point. Maruti is also benefited with its goodwill and Brand name which is already there in market. So Maruti can use these as an opportunity to bring new and innovative car models in market and try to attract more and more customers. It can be seen that Maruti is trying to attract

customers from all segments by launching cars like sx4, Swift, Ritz but their main preference is A segment cars only

Hyundai strategies of endorsing their products with celebrities has got a very good response but Hyundai should advertise better to create a good picture of its products by transferring the key good things about its cars. Hyundai has a good tract record of having successful diesel mid size cars in its portfolio and it should encash the same opportunity to launch the diesel versions of small car before Maruti too have competitive advantage. And Hyundai should also try to increase their service centers so that customers can find it convenient.