A Marketing Plan on Hyundai PA Car A Latest addition in Hyundai’s fleet

1. A Marketing Plan on
Hyundai PA Car
A Latest addition in Hyundai‟s fleet
Submitted To:
Mizanur Rahman
Professor
Deparment of Marketing
Faculty of Business Studies
University of Dhaka
Submitted By :
Md. Rezwan Ullah Khan
Roll : 019 Sec : B
MBA 10th Batch
Department of Business Studies
Faculty of Business Studies
University of Dhaka

2. Executive Summary
This report will take you through the marketing plan for Hyundai Pa.
„„Hyundai Pa will bridge the gap between Santro and Getz (other cars of Hyundai), giving customers
more options within the Hyundai family''. Hyundai Pa will be competing with the new Zen Estilo
from Maruti. Hyundai is also working on a one-liter diesel engine for Pa, which proves to be a good
strategy to take on Maruti & KIA; as Hyundai‟s biggest competitor in the small car section in our
market is Maruti Suzuki & KIA. It will be a true „Value-for-money‟ product and will be available in
varied colors suited to the Indian market.
The car at first glance resembles a styling pattern derived from Honda, Fiat, BMW and a few other
manufactures. Once inside the car the styling puzzle tends to become a lot less significant.
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 to us. There
is a growing demand for small cars in Bangladesh and if the PA project works properly, it‟ll be a
huge success in Bangladesh also.

3. 1. Current Market Situation
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. As we will have
to import the car from India, that‟s why these information are given. India is the nearest biggest
manufacturer of Hyundai cars & it emphasizes on producing smaller cars at cheaper rates but with
greater values. 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.
In Bangladesh, around 3000-3500 cars are being sold in every month costing over BDT 400,000 to
BDT 3.5 crore. This huge gap between the prices indicates that there is a huge demand of small
cars in our market and this market is growing very rapidly. And our Hyundai PA will fit into this gap
by pricing its product at BDT 450,000. This will revolutionize the small car market and will be
followed by the other giants like KIA and Maruti.
In the context of Bangladesh, we have smaller and narrower roads with heavier traffics to tackle
with. So we need a compact car that‟ll fulfill our needs of being fast and efficient at the same time.
But not to forget, price is also a decisive matter in this case. Our car will fulfill all these
requirements and provide a greater value to the customers.
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4. 1.1 Features of Hyundai Pa Source : Hyundai Motors Bangladesh Ltd.
Exterior
Advanced
Steering Wheel
Molded roof
Clear Head/Rear
lining
Lamp
Rear Parcel Tray
ORVM
Front & Rear
Tinted Glass
Speaker Grill
B/C Bumper
Room & Map
Radiator Grille Interior
Lamp
Side Reflectors
Standard Floor
Wheel Cover
Console
Waistline Molding
Front & rear Door
Mud Guard – Front &
full size Arm Rest
Rear
Luggage
Compartment
side tray
Seating
Electronic trip
Antisubmarine front
meter
seats
Low fuel warning
Seating capacity for 5
Seat Belt Warning
adults
Door & Tailgate
Rear Seat double
ajar warning
folding Instrument
Hand brake
60:40 split in rear Panel
warning
back rest
Rear Seat Adjustable
Head Rest
Adjust for Front Seat
– Inclination & Height
Safety & Security
Air Bags
Seat Belts A/C & Heater
Anti Braking system Power saving
Child safety Lock Blower speed
Comfort &
Day Night inside rear Remote fuel lid
Convenience
view mirror opener
Fog Lamps Cigar lighter
Collapsible Steering Antena
Collapsible Steering
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5. 2. SWOT Analysis
2.1 Strengths
 The best quality available
 Better manufacturing facilities
 Lowest price available
 3 years warranty provided
 Company goodwill
2.2 Weaknesses
 Change of price in manufacturing country
 The fluctuation of foreign currency exchange rate
 Other competitor KIA is also a Korean company
2.3 Opportunities
 The growing demand of small cars in Bangladesh
 Maruti has a negative image in the mind of the consumer of Bangladesh
2.4 Threats
 KIA is doing well in the compact car segment
 Very recently the tax on the imported car has been increased by the government
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6. 2.5 Advantages over the competitor (a comparison between PA and ZEN)
Source : Hyundai Bangladesh Ltd.
Specification Description Hyundai Pa Maruti Zen
Overall Length (mm) 3690 3535
Overall width (mm) 1690 1495
Overall Height (mm) 1590 1405
Dimensions
Wheel Base (mm) 2380 2335
Min.Turning radius(M) 5 4.9
Fuel tank Capacity (Ltr ) 45 35
No. of Cylinders 4 4
No. of valves 12 16
Valvetrain ( type ) SOHC SOHC
Engine
Displacement (cc) 1341 993
Max. Power (ps/rpm) 82.9/5500 60.79/6200
Max. Torque (Kgm/rpm) 11.8/3200 8.0/4500
McPherson strut McPherson strut
Front Suspension with coil spring 3 link rigid axle,
Suspension Rear Suspension Gas filled Shock coil spring, Gas
Rear Shock absorber absorber, CTBA Shock absorber
Gas Filled Gas Based
Front Ventilated discs Discs
Brakes
Rear Drums Drums
Tyre Size 155/80 R13 145/80 R12
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7. 3. Marketing Strategy
3.1 Objectives
 Will be focused on the market purely
 Product is chosen to meet the maximum need of the customers
 To be a market leader in compact car segment
 15% increase in sales within one year
3.2 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 our city
conditions. Our secondary consumer target is university students who need style and speed at the
same time efficiency.
Our other segment could be the business market where mid-sized corporate offices want to help
their managers and employees by providing them a car for ease of transport. Then we can also
target for entrepreneurs and small business owners.
Each of the four marketing strategies conveys Hyundai Pa‟s differentiation to the target marketing
segments identified above.
3.3 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 an economic car for the next generation.
3.4 Strategies
Product
Hyundai pa is fully loaded and will be sold with 3 years of warranty. We will also introduce a
diesel/CNG/LPG version of Hyundai Pa in the near future.
Price
Hyundai Pa‟s base model will be introduced at showroom price of BDT 4.5 lakhs. This price reflects
a strategy of -
1) Attracting desirable channel partners
2) Taking market share from Maruti and KIA
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8. Distribution
Manufacturer
Importer
Dealer
The importer will collect the car from the manufacturer
Then the importer will import the car to thy country and give it to the dealer
The dealer will display the product through its showroom and promote it
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9. 3.5 Marketing Mix
Product Price
Marketing Mix
Place Promotion
Product
Features:
The all-new “Hyundai Pa” is fully loaded with a range of exciting new features. It's a perfect
complement to your evolved tastes and lifestyle. And the best way to take your driving pleasure to a
brand-new high.
 European Styling.
 Japanese Engineering.
 Dream-Like Handling.
The new Hyundai Pa is a generation different from Getz and Santro design. Styled with a clear sense
of muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense that it
is packed with energy and ready to deliver a dynamic drive.
Price
Hyundai is expected to take Maruti and KIA heads on with the pricing of their Hyundai Pa car. After
launching cars for the masses since so many years, India‟s second largest automobile manufacturer
Hyundai is now targeting the premium segment of thy country and also Bangladesh with their latest
model from the Hyundai‟s stable.
This price range would practically rip apart Maruti‟s offering in Zen Estilo, which is priced at a
higher tag of Rs. 500,000. Hyundai is known for their extensive service network and brand
reputation for making reliable cars that should get the customer‟s nod over their competition.
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10. Promotion
Road Shows
The company can plan to stage road shows, to display vehicles in the pavilions during various
college festivals and exhibition. This car will appeal to youngsters more.
Television advertisements
Advertisements to promote and market our product will be shown on leading television channels.
Major music and sports channels will promote and they will reach out to the youth will be promoted
through Ntv, Etv, Bangla Vision, Channel I, ATN Bangla etc as it has more viewers.
FM Radio
Fm and AM both band Radios are the medium with the widest coverage within the shortest of time.
Studies have recently shown high levels of exposure to radio broadcasting both within urban and
rural areas, whether or not listeners actually own a set. Many people listen to other people's radios
or hear them in public places. So radio announcements will be made and advertisements will be
announced on the radio about the product features and price, qualities, etc.
Print Ads
Daily advertisements in leading newspapers and magazines will be used to promote the product.
Leaflets at the initial stage will be distributed at shopping malls, university & office areas and
various other locations. We could stick posters to the wall of the streets to promote it.
Banners, neon signs
Hoardings, banners, neon signs will be displayed on road side hoardings beside all the busy roads
of Dhaka, Chittagong, Sylhet and the other major cities of Bangladesh.
Booklets and pamphlets
Booklets will be kept at car showrooms, retail battery outlets for the customer to read. These
booklets will provide information about our company; the products offered which suits the
customers need accordingly.
Place
Hyundai Motors Bangladesh Ltd.
210A, Tejgaon I/A, Dhaka - 1208
Phone:+ 880-2-988-1264
Fax:+ 880-2-886-0073
Email: info@hyundaimotorbd.com
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11. 4. Financial projection
The pricing strategy would be like the following –
The manufacturer cost for this car will be RS 150,000 (in India). The converted price will be BDT
200,000 (in Bangladesh), then it‟ll be accompanied by the import cost and customs duty plus all the
expenses. The cost of the year-long advertising expenses and a profit margin must also be added
to this price. After all the adding, the math would look something like the following –
Factory cost BDT 200,000
(+) Import Duty + Tax + transportation cost
(+) BDT 10,000
(+) Profit margin 10%
The sum would be around BDT 450,000
(N.B. the import duty and taxes are fluctuating and recently been developing on a new scale, that‟s
why the percentages are not shown but the amount has been placed here by keeping the average in
mind.)
The promotion cost basically depends on the company. Here I‟ve planned a year-long advertising
promotion for the car in different media including TV, billboards, banners etc. The cost of
promotion is anticipated BDT 25,000,000; that‟ll add up to BDT 10,000 per car.
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12. Product Life Cycle
Profits
Negative Rising High Declining
Sales
Growth Maturity
Introduction Decline
Time
Figure : Product Life Cycle
In the introductory stage of the products life cycle, the profit will always be negative. The
companies eagerly waiting for money at the very beginning will be disappointed with this. Profits
will rise at the growth stage of the product and become high in the matured market. Profits will
again decline at the declining stage.
The same will happen here for Hyundai Pa also. Hyundai will make its profit over the other Hyundai
products but not on this brand, at least not at the beginning. The profit will be gained at the growth
level when the car will be accepted by the consumers and the sales will be rising very quickly.
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13. 5. CONCLISION
Automobiles have become an indispensable part of our lives, an extension of the
human body that provides us faster, cheaper and more convenient mobility every
passing day. Behind this betterment go the efforts of those in the industry, in the
form of improvement through technological research. What actually lie behind
this betterment of the automobiles are the opinions, requirements, likes and
dislikes of those who use these vehicles.
These wheeled machines affect our lives in ways more than one. Numerous
surveys and research are conducted throughout the world every now and then to
reveal one or the other aspect of automobiles, be it about the pollution caused
due to vehicle population in cities, or rising motor accidents and causes,
vehicular technology, alternative medicine and so on.
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