Marketing Strategy of Hyundai Motors in Patna PDF

1
SUMMER TRAINING PROJECT REPORT
ON
MARKETING STRATEGY OF HYUNDAI MOTORS
IN PATNA
A report submitted to IIMT, Greater Noida as a partial fulfillment of full time

Postgraduate Diploma in Management.
Under guider by- Rakesh kumar(sales manager)
SUBMITTED BYDEEPAK KUMAR
UNDER THE GUIDENECE OF

MR. RAJEEV GUPTA
ROLL NO. PGDM/11/11
IIMT COLLEGE OF MANAGEMENT GREATER NOIDA
CERTIFICATE
This is to certify that the Project Work titled Consumer Buying Behavior
Pattern For Hyundai Cars is a bonafide work of DEEPAK KUMAR carried out
in partial fulfillment for the award of degree of PGDM of IIMT College of
Management under my guidance. This project work is original and not
submitted earlier for the award of any degree or diploma or associate ship of
any other University /Institution.
CO-ORDINATOR
ACKNOWLEGEMENT
Here I take the opportunity to express my gratitude to all of them, who in some or the
other way helped me to accomplish this Project. The project study cannot be completed
without their guidance, assistance, inspiration and co-operation.
For successfully accomplishment of task apart from hard work the most important
requisite is the right direction and guidance. And for a student these become the major
part for the study. In HYUNDAI MOTORS this right direction and guidance is provided
by my guide and all the executives of the PATNA, in form of necessary information and
exhibits that give me a great help in completing my work.
First of all I would like to thanks HYUNDAI MOTORS and KRRISH HYUNDAI
showroom for giving me such a great opportunity of studying such a vast topic i.e.
MARKETING STRATEGY OF HYUNDAI MOTORS IN PATNA.
A special thanks to Mr. Rakesh kumar, Sales Manager (Patna) under whom I conducted
this study, for his able guidance in getting my project completed.
Lastly I express my gratitude to my parents who financed this project and who have been
a moral support to throughout my life.
DECLARATION
The summer training project on krrish motors pvt ltd, title: MARKETING STRATEGY
OF HYUNDAI MOTORS IN PATNA under the guidance of Mr. Rakesh kumar ,
Hyundai motors india Ltd is the original work done by me. This is the property of Institute &
use of this report without prior permission of the Institute will be considered illegal &
actionable.
Date: -
Deepak kumar
PREFACE
All students learn theoretical subjects in their classroom, but as we are the management
students, apart from theoretical studies we need to get a deeper insight into the practical
aspects of those theories by working as a part of organization during our summer training.
Training is a period in which a student can apply his theoretical knowledge in practical field.
Basically practical knowledge and theoretical knowledge have a very broad difference. So
this training has high importance as to know how both the aspects are applied together. The
study of management acquires most crucial position in the business administration. In order
to be successful, it is necessary to give priority to the management in an organization. But it
cant be denied that the study of management would be more educational, materialistic and
even more interesting, if it is to be paired with the work in organization as an employee.
The training session helps to get details about the working process in the organization. It has
helped me to know about the organizational management and discipline, which has its own
importance. The training is going to be a lifelong experience.
Management in India is heading towards a better profession as compared to other professions.
The demand for professional managers is increasing day by day. To achieve profession
competence, manager ought to be fully occupied with theory and practical exposure of
management. A comprehensive understanding of the principle will increases their decisionmaking ability and sharpens their tools for this purpose.
During the curriculum of
management programmers a student has to attain a practical exposure of an organization on

live project in addition to theory he/she studies.
This report is about the practical training done at KRRISH HYUNDAI, Patna during the
curriculum of PGDBM from IIMT.
TABLE OF CONTENT
S.NO
DETAILS
1.
PAGE
Executive summary
Literature review
2.
Chapter 1.
8-10
11-12
Introduction of the company

About the company
History of the company
13-20
Objective of the company

Mission and vision of the company
3.
Chapter 2.
Products of the company
21-24
4.
Chapter 3.
Sales and Distribution network in Bihar
25-38
5.
Chapter 4.
Marketing & Sales strategy of the company in
39-47
patna
6.
Chapter 5.
Sales and Marketing strategy of its competitors.

About the competitor
Product of the competitor and comparison with
48-54
product of Hyundai
Comparison of strategy of Hyundai motors and its
competitor
7.
Chapter 6.
Advertisement policy.
55-78
8.
Chapter 7.
Customer relationship management and
79-86
satisfaction survey
9.
Chapter 8.
social corporate activity of the company
10.
Chapter 9.
Findings
87-94
Suggestions
Learning
My Experience
Bibliography
Annexure
Word of thanks
95-103
EXECUTIVE SUMMARY
Being an PGDBM aspirant, I was assigned the most relevant title, as regards Summer
Training project, on Marketing strategy of Hyundai motors in patna To execute the
assigned task, I had to know about the car segment and made my customer aware about
Hyundai motors product or to convince them that they have made the right choice. To fulfill
this purpose I got detailed information about the products of Hyundai motors and learn about
their features and specialty so that I can do my task easily.
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the second
largest car manufacturer in India. HMIL presently markets 7 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, the A5 segment includes the Sonata Transform and the SUV segment
includes the Santa Fe.
HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. To cater to rising
demand, HMIL commissioned its second plant in February 2008, which produces an
additional 300,000 units per annum, raising HMILs total production capacity to 600,000
units per annum.
In continuation with its commitment to providing Indian customers with cutting-edge global
technology, HMIL has set up a modern multi-million dollar research and development
facility in the cyber city of Hyderabad. It aims to become a centre of excellence for
automobile engineering and ensure quick turnaround time to changing consumer needs.
As HMC's global export hub for compact cars, HMIL is the first automotive company in
India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars
to more than 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific.
It has been the number one exporter of passenger car of the country for the sixth year in a
row. To support its growth and expansion plans, HMIL currently has a 325 strong dealer
network and 674 strong service points across India, which will see further expansion in 2011.
Company, South Korea and is the second largest car manufacturer and the largest passenger
car exporter from India. HMIL presently markets 55 variants of passenger cars across
segments. The Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20
in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E
segment and the Tucson in the SUV segment.
Hyundai motors ranked highest in customer satisfaction with after-sales service. This is all
due to
True value
Driving school
Authorized service station
Insurance
Genuine accessories
Strength
Distributor network brand loyalty, Japan technology and Service distribution
After sales service
Cost-effective
Low maintenance
Indian middle-class
Low price,
High fuel efficiency
Weakness
Low capacity engine
Opportunity
High end car segment
Overseas market
10
Improve handling
Add extra features to small segment cars
Attracting youth
Export small cars
Threats
Fuel price
Foreign brands
Price high of raw material
Small car competition
Key competitors
Tata Motors, maruti, Ford, Mahindra , General Motors, Honda
Now my task was to meeting with clients and sales promotion or convincing customer, so I
use to meet with the customer and convince them about the products . I used to talk very
gently and they were also cordial with me, but I got some bitter experiences also at some
places. Further I used to meet with our clients or whatever problems they are getting, my
work was to solve that problem by consulting with different departments. For the purpose of
making aware to the prospective customers I had to explain each & every aspect of the
product. For fulfilling the formalities to giving information of Hyundai motors products I
had to gain the knowledge of the technical part also.
Further, in operations I learned about the documentation & process of filling the customer
form & in this process I have to follow the guidelines given by the project guide, I analyzed
different aspects of selling of cars with their benefits and finance facility..
11
LITERATURE REVIEW
The work is a pure applied part of my more than 7 weeks curriculum S T. It has been a
purely practical exposure to the corporate sector. I must say that being a PGDM(MM)
student, aspiring to take specialization in the field of marketing, I was quite familiar with the
business environment theory after completing 1 year of my studies.
Superficially, my
Summer Training has enabled me to get an in-depth knowledge of the reality show of the
corporate sector.
There is no doubt about the fact that theoretical knowledge acquired by a student during the
pursuance of his/ her PGDM(BM) lays down a foundation with the help of which the student,
in consideration, can expect to have the widest exposure of the reality show of the corporate
sector. But, one should not take it for granted that the so-called theoretical concepts can be
applied to the business environment in totality. That is to say that there, actually, is a
difference between the theoretical and practical environment of the corporate world. Part A
of the story is that one has to take into consideration, the feasibility of a specific theoretical
concept before one is to apply the same in the typical or complex business situation.
Decisions taken out of thin air, in an ad-hoc manner, may spell a disaster for the organization
as a whole. The other part of the story is that if one has applied a theoretical concept, in the
light of its feasibility and after effective consideration of the Cost and Benefit Analysis, the
same can prove to be very fruitful for the organization.
Marketing is the important division of any organization. The main role of manager is
improves the sales of company. They launch the product in market according to the market
segmentation. Marketing manager also control the supply chain system of product. So in
Hyundai motors we learned all aspect of business.
12
Thus, to conclude, I would say that there is a slight difference between theoretical and
practical realities. But, one must understand that, in order to rule the corporate world it is
worthwhile to have the theoretical knowledge because, it is the theoretical knowledge that
lays down the foundation for the success of a modern business man.
13
CHAPTER---------1
Introduction of the company
About the company
Objective of the company
Mission and vision of the

company
14
Introduction of company
About the company.
The Hyundai Motor Company was founded in 1967. It produced

Koreas first locally designed car in 1976, and now produces close to four million cars and
commercial vehicles a year. Today, Hyundai employs over 68,000 people around the globe.
We have manufacturing plants in Korea, India, the USA and the Czech Republic, and joint
venture plants in China, Turkey, South-East Asia, South America, Africa and Russia.
Hyundai is growing into a brand appreciated by its customers by continuously striving to
achieve the single goal of making excellent quality products with an emphasis on exceeding
customer expectations.
Hyundai now ranks as the worlds fifth largest automotive corporation. Whats more,
Hyundai annually invests billions of dollars in research and development to continuously
bring you eye-catching, practical cars that are safer and more efficient than ever before.
segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the
Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment
includes the Santa Fe.
advanced production, quality and testing capabilities in the country. To cater to rising
demand, HMIL commissioned its second plant in February 2008, which produces an
additional 300,000 units per annum, raising HMILs total production capacity to 600,000
units per annum.
15
In continuation with its commitment to providing Indian customers with cutting-edge global
technology, HMIL has set up a modern multi-million dollar research and development
facility in the cyber city of Hyderabad. It aims to become a centre of excellence for
automobile engineering and ensure quick turnaround time to changing consumer needs.
Company, South Korea and is the second largest car manufacturer and the largest passenger
car exporter from India. HMIL presently markets 55 variants of passenger cars across
segments. The Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20
in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E
segment and the Tucson in the SUV segment.
Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger
car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2008,
an increase of 49.6 percent over CY 2007. In the domestic market it clocked a growth of 22.4
percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports
accounting for 243,931 units in 2008.
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL commissioned its
second plant in February 2008 which produces an additional 300,000 units per annum, raising
HMIL's total production capacity to 600,000 units per annum.
HMIL has invested to expand capacity in line with its positioning as HMC's global export
hub for compact cars. Apart from the expansion of production capacity, HMIL currently has
271 strong dealer network across India, which will be further bolstered in 2009.
In 2008, HMIL also successfully completed 10 glorious years of operations in India and to
commemorate its achievements, initiated a unique trans-continental drive from Delhi to Paris
16
in two of its hugely popular i10 Kappa cars. The drive created automobile history by
completing a distance of 10,000km in just 17 days after which the i10s were showcased at the
Paris Motor Show in October. In fact it was at the Paris Motor Show that HMIL first unveiled
the Hyundai i20 and the car received a phenomenal response from the auto enthusiasts across
the world. Hyundai Motor India also accomplished the landmark of producing the fastest 20th
lakh cars in India in 2008.
Like 2008, the year 2007 had also been a significant year for Hyundai Motor India. It
achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai
exported to over 95 countries globally; even as it plans to continue its thrust in existing export
markets, it is gearing up to step up its foray into new markets. 2007 also saw the launch of the
i10 and yet another path-breaking record in its young journey by rolling out the fastest
1,500,000th car.
Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards from
the leading automotive magazines and TV channels like BS Motoring, CNBC-TV18
AutoCar, NDTV Profit Car & Bike India and Overdrive magazine. The i10 was also the
choice of the discerning automotive media of the country as they conferred the prestigious
'Indian Car of the Year' (ICOTY) award to the i10 as well.
The Santro and the Accent also received the 'TNS Voice of the Customer - 2008' award for
the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In March 2008 it
achieved yet another milestone by rolling out the fastest 500,000th export car.
In 2007, the Hyundai Verna had also bagged some of the most prestigious awards starting
with the Overdrive magazines Car of the Year 2007, the Best Mid-size Car of the Year
award from NDTV Profit Car & Bike India, the Best Value for Money Car from CNBC
Autocar and 'Performance Car of the Year' from Business Standard Motoring.
Hyundai cars have been a favorite at all awards ceremonies and has won many awards. The
Sonata Embera won the 'Executive Car of The Year 2006' award from Business Standard
Motoring magazine and NDTV Profit Car & Bike India had declared the Tucson as the 'SUV
of The Year 2006'.
Not only this, HMIL has also been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices.
17
segments. The A2 segment includes the EON, Santro, i10 and the i20, the A3 segment
includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the
SUV segment includes the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing
plant near Chennai boasts of the most advanced production, quality and testing capabilities in
the country. To cater to rising demand, HMIL commissioned its second plant in February
2008, which produces an additional 300,000 units per annum, raising HMILs total
production capacity to 600,000 units per annum.In continuation with its commitment to
providing Indian customers with cutting-edge global technology, HMIL has set up a modern
multi-million dollar research and development facility in the cyber city of Hyderabad. It aims
to become a centre of excellence for automobile engineering and ensure quick turnaround
time
to
changing
consumer
needs.
Hyundai was founded in 1946 in Seoul, Korea. The name Hyundai literally means Modern
era, and from the very start the company quickly adopted a passion for progress which has
been our hallmark ever since.
In less than 50 years, the Hyundai group has become a world leader in building
everything from ships to microchips, including consumer electronics, oil rigs and massive
infrastructure projects.
We even have our own steel blast furnace to process raw materials, many of which come
from Australia, which provides enhanced quality control over our products
18

Taking pride in your car by driving it and admiring it is one thing, actually knowing
its history is quite another.
The 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 the 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. He created it and transformed it from a mere
assembler of Ford models to a designer and exporter of its own cars and engines in
less than four decades. 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. These pages therefore
outlines not only the rich and unique History of the Hyundai Motor Company but also
the remarkable years beforehand that led to its creation, the eventual breakup of the
Group and its continuous development into a top ten global automaker.
Pre-Hyundai History 1900-1946
1915
1930
1932
1934
1937
1939
1940
1945
1946
1947
1940
1941
1942
1943
1944
1945
1946
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1948
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1990
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2002
2003
2004
2005
2006
2007
2008
2009
2010 2011
Mission and vision of the company

Vision
We announced "Innovation for Customers" as our midto longterm vision with five core
strategies: global orientation, respect for human values, customer satisfaction, technology
innovation, and cultural creation. We desire to create an automobile culture of putting customer
first via developing humancentered and environmentfriendly technological innovation.
Management Policy
Based on a respect for human dignity, we make efforts to meet the expectations of all
stakeholders including customers and business partners by building a constructive relationship
amongst management, labor, executives and employees. Also, we focus on communicating our
corporate values both internally and externally, and gaining confidence from all stakeholders.
20
Mid-and Long-term Strategies

We developed five midand longterm strategies: global management, higher brand values,
business innovation, environmental management, and strengthening product competitiveness.
Especially, we selected environmental management as one of our strategies to meet the needs of
our stakeholders and the society we belong to. We also intend to promote sustainability
development and preservation of the environment.
21
Chapter- 2
Products of the company
HYUNDAI VERNA
HYUNDAI ACCENT
HYUNDAI TUCSON
22
Hyundai Cars in India are delivered from Hyundai Motor India Limited, a wholly owned
subsidiary of Hyundai Motor Company. Hyundai India is the second largest car manufacturer
in India. It markets a great number of Hyundai car variants particularly in the passenger car
section. The Hyundai Car variants are marketed in six segments. Hyundai India has great
plans for the future. Hyundai India envisages the employment of 800 odd people in the period
of 2 years. Hyundai cars in India have offered a wide scope in the R&D segment.
Hyundai India is also looking forward to undertake application oriented strategic research in
Information and Communication Technologies like Software, Telemetric and Simulation
Systems. Hyundai car is well known for its user friendly drive, fuel efficiency and easy
manoeuvrability. Hyundai Car provides engineering services through Computer Aided
Designing & Computer Aided Engineering.
Hyundai Cars in India have managed to secure very skilled research personnel to create new
technologies. Hyundai Car has focus on future-oriented automobiles and improvised
products, ideally suited to various regions. Hyundai India has also been a pioneer in
manufacturing family oriented small cars well suited for the Indian roads. Eco friendly cars
and hybrid beauties are soon going to be a reality at Hyundai India.
23
EON:The Hyundai Eon is a 5-door hatchback subcompact produced by the Hyundai Motor
Company. It was launched in 1 October 2011 in India and in March 2012 in the Philippines.
Design:The Eon was designed jointly between the Hyundai R&D centers in Namyang, South
Korea and Hyderabad, India. It is offered with a 814cc 3-cylinder gasoline engine that
generates 55 bhp and 75 Nm torque. Accor ding to Hyundai's Philippine distributor, the Eon
has a fuel economy rating of 26.3 kilometers per liter.
In January 2012, Hyundai India announced LPG models of Eon as well, with an additional
cost of approximately INR 27000 to the available models.
Model of Eon
D-LITE
D-LITE+
ERA+
MAGNA+
SPORTZ
24
Variants of EON:D-Lite:- This has the same features as D-Lite but has an air conditioner and full wheel
cover with Hub cap.
Hyundai Sonata
Hyundai Sonata Embera has added a new
dimension in the luxury sedan car segment of
India. This new offering from Hyundai is
"undoubtedly distinguished" in terms of design,
comfort
and
safety.
Sonata
Embera
is
contemporary and sharp from the outside with

charismatic
features
from
inside,
i.e.
more
spacious, elegant and cool. The 2.4 L VTVT

engine, with the awesome power of 165 ps, would
make
your
ride
smoother
CHAPTER3
and
controlled.
25
Sales and Distribution network in Bihar

Hyundai sales up by 3.5%
Patna, July 2, 2012: Hyundai Motor India Ltd (HMIL), the countrys second largest car
manufacturer and the largest passenger car exporter registered aggregate sales of 54,354 units
(52,521 units) in June, up 3.5 % from the corresponding month last year, domestic sales were
30,450 units (30.402 units) up 0.2% and exports were 23,904 units (22,119 units) up 8.1%.
Commenting on the sales, Mr Arvind Saxena, Director, Marketing and Sales, HMIL said,
The general inflationary trend, high fuel prices, interest rates that are still high are keeping
sentiment low. Unless any triggers get activated, sentiment is not expected to improve very
much. Speaking about the growth in exports, Mr Saxena said, We are witnessing good
volumes in South America and Africa. The Eon is being particularly well received in Africa
and the i10 is strong in South America.
HMIL Sales
June 2011
June 2012
Growth%
Domestic
30,402
30,450
0.2
Exports
22,119
23,904
8.1
Cumulative
52,521
54,354
3.5
The segment-wise cumulative sales for June 2012 are: A2 segment 44,046 units (Eon, Santro,
i10, i20); A3 Segment 10,182 units (Accent and Verna); A5 segment 39 units (Sonata);
SUV 87 units (Santa Fe)
Hyundai aggregate sales up 16.6%
Patna, June 1, 2012: Hyundai Motor India Ltd (HMIL), the countrys second largest car
manufacturer and the largest passenger car exporter registered aggregate sales of 55,670 units
(47,762 units) in May up by 16.6% from the corresponding month last year, domestic sales
were 32,010 units (31,123 units) up 2.8% and exports were 23,660 units (16,639 units) up
42.2 %.
26
Commenting on the sales, Mr Arvind Saxena, Director, Marketing and Sales, HMIL said,
The recent hike in petrol prices has depressed market sentiment, with the macro-economic
indicators providing no cause for cheer, the demand outlook doesnt look very bright.
HMIL Sales
May 2011
May 2012
Growth%
Domestic
31,123
32,010
2.8
Exports
16,639
23,660
42.2
Cumulative
47,762
55,670
16.6
The segment-wise cumulative sales for May 2012 are: A2 segment 48,250 units (Eon, Santro,
i10, i20); A3 Segment 7,306 units (Accent and Verna); A5 segment 43 units (Sonata); SUV
71 units (Santa Fe).
Hyundai domestic sales up 10.9%
Patna, May 2, 2012: Hyundai Motor India Ltd (HMIL), the countrys second largest car
manufacturer and the largest passenger car exporter registered domestic sales of 35,070 units
(31,636 units) last month, up 10.9% from the corresponding month last year, aggregate sales
touched 54,606 units (52,057 units) up 4.9 % for the same period.
Commenting on the April domestic sales, Mr Arvind Saxena, Director, Marketing and Sales,
HMIL said, Consumer confidence continues to be weak, prices went up following the excise
hikes in the Union Budget and interest rates are yet to come down. Given the present
conditions its a challenging market.
HMIL Sales
April 2011
April 2012
Growth%
27
Domestic
31,636
35,070
10.9
Exports
20,421
19,536
- 4.3
Cumulative
52,057
54,606
4.9
The segment-wise cumulative sales for April 2012 are: A2 segment 44,891 units (Eon,
Santro, i10, i20); A3 Segment 9,579 units (Accent and Verna); A5 segment 66 units
(Sonata); SUV 70 units (Santa Fe).
DISTRIBUTION NETWORK
The system of intermediaries between the producer of goods and/or services and the final users.
Distribution Network Design
In the wake of increasingly complicated supply chains, distribution network design plays a
key role in controlling the cost of doing business. And, in a world of shrinking margins,
controlling the cost of doing business can be the factor that puts you ahead of your
competitors.
Distribution Network Design Solutions
An optimal distribution network is intelligently designed to minimize costs by providing the
customer the right goods, in the right quantity, at the right place, and at right time. A tall
order, right? In most organizations, controlling distribution costs involves striking a balance
between warehousing and transportation. While more distribution centers drives down the
cost of transportation, the opposite holds true as well. Tompkins distribution network design
services attempt to answer questions like:
How many DCs should you have?
Where should they be located?
What should be the configuration and strategy of each DC?
Which group of customers should each DC service?
How will customers order from and how will each DC be replenished?
28
Tompkins Associates pioneered the use of computers for modeling and analyzing distribution
networks. Nobody does it with the depth of understanding or attention to detail that we do.
We choose from an array of the best modeling tools to best suit each client's operation.
Understanding Distribution Network Design
Because the volatile forces at play in the market today can cause a company's momentum to
vanish into thin air, we design into your distribution network the flexibility to adjust to
changing market conditions, including:
Geographic shifts in production and consumption
Market segmentation, new markets and new customer service requirements
Cost increases in energy, plant and equipment maintenance, and labor
Government regulation or deregulation
Not only will we create the most demand-flexible, cost-effective distribution network, as a
full-service consulting and integration firm, we can build it for you and step you and your
employees through the transition to the new network. Tompkins can provide your firm
everything from site selection and real estate services to construction and integration services.
Product Promotional Pattern
In classification various techniques are used to promote and sell a pharmaceutical such as TV
advertising, distributing broachers, regular visits by medical representative, gift and sample
distribution. An ethical drug first has to be approved and recommended by a physician and
then sold to the patient or consumer, through medical stores, non ethical or patented products
can be directly sold to the consumer through persuasive advertising through various media
such as newspaper, magazine, radio or TV.
It can be sold through point of sale advertising which means poster in the medical shop or
window displays, but the proportion of non ethical or patented products is hardly about 20%
of the total output of drugs and pharmaceutical products.
29
Hence an indirect method, a roundabout way of promotion and distribution has been adopted
in pharmaceutical marketing. It can be shown diagrammatically as given under.
Company
Central Depot
C & F (Carry and Forward)
District wise Stockist
Retailers
Customer
30
Automobile Co.
SALES PROMOTION HYUNDAI MOTOR

Marketing is the process of performing market research, selling products and/or services to
customers and promoting them via advertising to further enhance sales. It generates the
strategy that underlies sales techniques, business communication, and business developments.
It is an integrated process through which companies build strong customer relationships and
create value for their customers and for themselves.
Marketing is used to identify the customer, to satisfy the customer, and to keep the customer.
With the customer as the focus of its activities, it can be concluded that marketing
31
management is one of the major components of business management. Marketing evolved to

meet the stasis in developing new markets caused by mature markets and overcapacities in
the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their
focus from production to the perceived needs and wants of their customers as the means of
staying profitable.
The term marketing concept holds that achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions. It proposes that
in order to satisfy its organizational objectives, an organization should anticipate the needs
and wants of consumers and satisfy these more effectively than competitors.
Sales performance
Hyundai Motor India Limited Annual Sales
Calendar Year
Domestic Sales
Exports
Total
1998
8,447
8,447
1999
17,627
20
17,647
2000
82,896
3,823
86,719
2001
87,175
6,092
93,267
2002
102,806
8,245 111,051
2003
120,325
30,416 150,741
2004
139,759
75,871 215,630
2005
156,291
96,560 252,851
2006
186,174
113,339 299,513
2007
200,411
126,749 327,160
2008
245,397
243,919 489,316
32
Hyundai Motor India Limited Annual Sales
Calendar Year
Domestic Sales
Exports
Total
2009
289,863
270,017 559,880
2010
356,717
247,102 603,819
2011
373,709
242,330 616,039
OBJECTIVES OF SALES PROMOTION

Sales promotion is a tool used to achieve most of the five major promotional objectives
discussed in the Promotion Decisions tutorial:
Building Product Awareness Creating Interest Providing Information Generally

sales promotion techniques are designed to move customers to some action and are
rarely simply informational in nature. However, some sales promotions do offer
customers access to product information. For instance, a promotion may allow
customers to try a fee-based online service for free for several days. This free access
may include receiving product information via email.
Stimulating Demand
Reinforcing the Brand
CLASSIFICATION OF SALES PROMOTION

Sales promotion can be classified based on the primary target audience to whom the
promotion is directed. These include:
Consumer Market Directed - Possibly the most well-known methods of sales

promotion are those intended to appeal to the final consumer. Consumers are exposed
to sales promotions nearly everyday, and as discussed later, many buyers are
conditioned to look for sales promotions prior to making purchase decisions.
Trade Market Directed Marketers use sales promotions to target all customers
including partners within their channel of distribution. Trade promotions are initially
used to entice channel members to carry a marketers products and, once products are
stocked, marketers utilize promotions to strengthen the channel relationship.
33
Business-to-Business Market Directed A small, but important, sub-set of sales

promotions are targeted to the business-to-business market. While these promotions
may not carry the glamour associated with consumer or trade promotions, B-to-B
promotions are used in many industries.
An extensive discussion of different types of promotions for each classification can be found
in our Types of Sales Promotion tutorial.
FUNTION OF SALES PROMOTION
Sales promotion is a short-term marketing strategy designed to achieve a specific purpose.
Sales promotion differs from advertising in that its intent is to create a sense of urgency to
encourage immediate action as opposed to building sales or a brand over a long period of
time. Sales promotion may take the form of a temporary price reduction or a campaign to
introduce an item.
Production Differentiation
Attract Customers
Increasing Market Share
New Product Introduction
Inventory Control
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
34
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 lifebouy 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 organised 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.
35
SALES & DISTRIBUTION

A sales promotion at a business may be a scheduled event, such as a weekly or monthly price
reduction, or it may occur at different times throughout the year. It is completely up to the
company as to when they will offer promotional pricing on goods or services. Sales
promotions often occur at the changes of the seasons, where the type of merchandise sold
may change, and companies will want to move old merchandise quickly to make room for
new items to sell at full price.
1. Aim and structure
Our aim is to analyses the driving forces affecting the S&D innovations and increase the
understanding of supply chain management innovations in delivering customer satisfaction.
What does the network of relations mean in this system? Which are the major actors and core
relations? Which power do they exercise? Who are the win-ners and the losers so far?
In section 3 and 4 we are developing a model for the analysis of our case. In section 5 we are
presenting the case which is analyzed in section 6. In section 7 we are look-ing for a pattern
of change, the managerial implications and policy issues of the de-regulation process going
on in the EU.
2. Theory: Competitiveness, competencies and networks
There is an interesting imbalance between different theoretical aspects of this field and also
between theories and best practice. More general research approaches of interest here are
found in the fields of industrial organization, e.g. Porter (1980; 1985; 1990) and transaction
cost economics (TCE) (Williamson, 1999). In the automotive industry, one of the most
competitive of the major, mature industries, competitive-ness and performance are key
concepts for the understanding of the innovative process. However, Porter/Competitive
Strategies and Williamson/TCE can only offer partial explanations for the understanding of
the automotive channels development. Their major weakness is that both approaches are very
cost focused. There are no concepts for the understanding of the dynamics, value creation and
other processes that are generating income. We need other references for these aspects.
3. Managing innovations in sales and distribution
In the development of a model for the understanding of the innovation process we are using
some relevant concepts and a process model from the literature. For each phase in the model
36
we are discussing our empirical case in the light of the model. Finally, we will analyze the
case and discuss how the innovation process could be improved.
4. Empirical setting
The major members in the automotive industry supply chain are traditionally the car
manufacturers and their suppliers, especially the first tier suppliers, the dealers and the final
consumers. During the last few years a new group of members has ap-peared namely the
Internet-based intermediaries (new middlemen). Our analysis of the distribution and sales
part of the supply chain is taking the driving forces including the new members and catalysts
into account.
5. Analysis
In order to analyse the development of automotive industry sales and distribution we are
applying the four different aspects of the management of innovations presented by Van de
Ven (1986). First, we are discussing how the market channel members have managed
peoples attention to new ideas. In the following sections, the man-agement of ideas into
37
good currency, and the part-whole relationships and the man-agement of innovation context
are depicted.
Managing attention: recognizing the need of renewal, communicating the need of renewal,
and understanding double-loop learning .
The human problem of managing attention involves the tension between stability and
creativity in the initial phase of the innovation process. The problem is how to trigger people
to pay attention to new ideas and concepts. Van de Ven means that successful organizations
experience more difficulties in changing peoples attention from daily activities and routines
to new ideas, opportunities and needs. According to Schroeder et al (1989), innovations are
often triggered by internal or external shocks, e.g. business cycles or internal organizational
crisis.
In the strategic analysis of the development of more efficient S&D, we must consider the
roles of the members. The OEMs or primes own the product brands that are the basis for all
businesses in the supply chain. Therefore they have to focus upon the management of the
interfaces, relationships and contracts from the suppliers all the way to the final customer. At
the same time OEMs control over the operational part of the value-adding supply chain is
decreasing as suppliers are taking over a larger share of operational activities. Crossfunctional and organizational integration is in-creasing. The complexity of the system is
growing.
38
Managing ideas into good currency and the part-whole relationships: Dy-namic Capabilities
- A Quasi-Resolution to Conflict
The process problem of managing ideas into good currency relates to the difficulties in
implementing and institutionalizing innovative ideas in the organization. While individuals
provide the invention and the initial idea, the implementation of the invention involves the
whole organization. This process of transforming the idea into good currency is primary
influenced by social-political dynamics within the organization, and is controlled by the
existing system as long as the critical debate of problems continue (Van de Venn 1986).
Thereafter, new ideas are initiated and the political debate can go on. A political tension in
the organization can move the idea forward. When this tension decreases other ideas are
initiated and thus the political problems related to the new idea are debated.
39
CHAPTER-4
Marketing & Sales strategy of the company in
Patna
As companies find it harder to differentiate their physical products, they turn to service
differentiation. Companies seek to develop a reputation for superior performance in on time
delivery, better and faster answering of inquiries, and quicker resolution of complaints.
Service becomes the mantra, and many books have been written to point out the superior
profitability of companies that manage to deliver superior service.
Marketing strategies for service firms

Once service firms lagged behind manufacturing firms in their use of marketing because they
were small or professional businesses that did not use marketing, or faced large demand or
little competition; but this has certainly changed.
Three additional Ps
The traditional four Ps marketing approaches work well for goods, but additional elements
require attention in service businesses. Booms and bitner suggested three additional Ps for
service marketing people, physical evidence, and process. Because most services are
provided by people, the selection, the training, and motivation of employees can make a huge
difference in customer satisfaction. Ideally, employees should exhibit competence, a caring
attitude, responsiveness, initiative, problem solving ability and good will.
The 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 - MarutiUdyog 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
40
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).
This would lead to a loss in Santro's market share. (Refer Exhibit III for the comparison of
features of various models in the B segment).
Background Note
For a long time after India became independent in 1947, the car market had just two models
to offer - the sturdy 'Ambassador' from Hindustan Motors (HM) and the sleek 'Fiat' from
Premier Automobiles (PA). This was the result of Government of India's (GOI) decision to
keep the car industry tightly protected.
Hyundai's Entry in India

One of the major players that entered the Indian car market was HMC through its subsidiary
HMIL. Before making its move, the company closely studied the industry for a year. The
company's officials talked to vendors, dealers and customers to get a thorough knowledge of
the industry.
Marketing Santro
Santro received an encouraging feedback from customers who appreciated its unique design
that gave more headroom and facilitated easy entry and exit...
Launch of Accent
By mid 1999, the major players realized that the 'B' segment would be the fastest growing in
the car industry. To cash in, Telco re-launched its 'Indica' by introducing several new features
and solving the glitches in the original model...
Repositioning Santro
By late 2002, the competition in the B segment had increased significantly. MUL's Alto
which was launched in October 2000 had received a good response. Although HMIL's Santro
remained the largest selling car in the B segment, MUL commanded the largest market share
in this segment due to the combined sale of its three cars - Zen, Wagon R and Alto...
Status in 2004
41
The financial year 2003-04 ended on a positive note for HMIL. The company achieved
revenues of Rs 50 bn and profit after tax (PAT) of Rs. 1.90 bn in the financial year 2003-04
compared to Rs 43 bn revenues and PAT of Rs 1.65 bn in the fiscal 2002-03...
The Challenges Ahead
During the period January to June 2004, Santro lost its leadership status in the B segment...
Exhibits
Exhibit I: Segments of Indian Car Market
Exhibit II: Total Sales of Leading Car Models (2003-04)
Exhibit III: Comparision of Features of Different Models in B Segment
Exhibit IV: Market Share (in Units) of Car Models (April 2000 - January 2004)
Exhibit V: HMIL's Santro
Exhibit VI: Advertisement of Accent
Exhibit VII: Advertisements of Santro Xing
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 Pas marketing strategy is differentiated marketing. Our primary consumer target is
middle to upper income professionals who need true value for their money and comfortable
42
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 Pas differentiation to the target
marketing segments identified above.
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.
Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main points of
product differentiation. Research about media consumption, pattern will help our advertising
agency to choose appropriate media and timing to reach prospects before & during the
product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain
brand awareness and communicate various differentiation messages. The agency will also coordinate public relation efforts to build Hyundai brand & support the differentiation message.
To attract market attention & encourage purchasing, we will offer a limited time, registration
& insurance. To attract, retain & motivate channel partners for a push strategy, we will use
trade sales promotions and personal selling to channel partner.
Marketing Mix
43
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.
Its solid look is complemented by an equally rooted road presence and class-defining ride
quality. New chassis systems allow for the front suspension lower arms, steering, and
gearbox and rear engine mounting to be attached to a suspension frame. You get lower road
noise and a greater feeling of stability as you sail over our roads with feather-touch ease.
Price
Hyundai is expected to take Maruti heads on with the pricing of their upcoming Hyundai Pa
car. After launching cars for the masses since so many years, Indias second largest
automobile manufacturer is now targeting the premium segment with their latest model from
the Hyundais stable. The analysts predict the pricing of this premium hunchback to start
from Rs. 3 lakh.
44
This price range would practically rip apart Marutis offering in Zen Estilo, which is priced at
a higher tag of Rs. 3.5 lakh. Both the companies are known for their value based offerings
and Hyundai with their extensive service network and brand reputation for making reliable
cars should get the customers nod over their competition.
The official pricing however is still not out. However, the company is said to be studying the
prospects of launching the base model at the 3 - lakh price tag.
if they indeed do take the chance of pricing Hyundai at a considerable lower price than Zen
Estilo , they would quite likely force the competition to rethink their strategy.
Promotion
Road Shows
The company plans 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 Star, Zee, Sony and Doordarshanetc as it has more viewers.
Radio
Radio is the medium with the widest coverage. 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 railway stations, malls, college areas
and various other locations.
Workshops and Seminars
45
Workshops and seminars will be held in colleges and big corporate to make people aware
about the companies past performance and product features, its affordability and usage, vast
distribution network. Road shows will be conducted where free trials of the car would be
given.
Banners, neon signs

Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and shops to
promote our brand car.
Booklets and pamphlets
Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read.
These booklets will provide information about our company; the products offered which suits
the customers need accordingly.
Marketing Strategies - Hyundai
The case discusses the marketing strategies of Korea based Hyundai Motor Company (HMC)
in India. HMC entered India by establishing its wholly owned subsidiary Hyundai Motors
India Limited (HMIL) in 1996. Within a year of launch of its first product - Santro, HMIL
had emerged as the second largest car company in India.
The case describes in detail the entry, product, pricing, distribution and promotional
strategies of HMIL. The case briefs the challenges faced by the company and its marketing
plans in future. It also includes a note on the Indian passenger car industry, the leading player
and its marketing strategy.
The 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)
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 - MarutiUdyog Limited (MUL), 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.
Objectives
46
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 Pas 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 Pas differentiation to the target
marketing segments identified above.
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.
Price
47
Hyundai Pas base model will be introduced at ex-showroom price of 3 lakhs. This price
reflects a strategy of
1) attracting desirable channel partners
2) Taking market share from Maruti.
Distribution
STOCKIST
to
DEALERS
to
SUB DEALERS
to
BOOKING AGENTS
The Stockist will represent 3 to 4 districts in a State.
The Dealer will represent a district or main City.
The Sub-Dealer shall represent a particular area or taluka.
The booking agents will be individuals working on freelance basis.
CHAPTER- 5
48
Sales and Marketing strategy of its Competitors

About the competitor
Product of the competitor and comparison with
Product of Hyundai
Comparison of strategy of Hyundai motors and its

Competitor.
49
Sales and Marketing strategy of its Competitors
50
51
SWOT analysis of Hyundai Motors

Strengths of HMIL
Hyundai India has such a brand equity that it is almost assumed to be an Indian brand, with
lot of good accolades for being Indias second most selling brand next to MUL in market
share
Hyundai Motor India limited is the largest car exporter from Asian Market which showed a
10% growth compared to last FY
The domestic sales is increasing at an average rate of 19.1%
HMIL is known for its quality products which has better performance and it has constantly
been ahead in the race with Maruti Udyog limited in many parameters
The product length includes around 8 cars, starting from new Eon in small car segment to
SUV segment Santa Fe
Among the automobile players only HMIL is known for its CSR activities
Hyundai products never fail to win laurels in each segment from various automobile ratings
ever since its operations in India
52
Hyundai , has the largest network of showrooms and service station next to Maruti in India
An article in Economic times quoted that Hyundai Eon launched , treads on Alto territory
indicated that Eon will act as a threat to reduction in Altos market share.
Weaknesses of HMIL
HMIL took a long time to gain the market share as its not the first mover in India
In terms of most reliable and trusted brand; Maruti is more strong in Indian subcontinent
Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not have
PAN India presence
In SUV segment both Tucson and its next model Santa Fe didnt make a major impact
Increase in commodity prices such as steel, aluminium and ancillary parts has affected
margins
Since HMIL concentrates on both domestic and International sales there are higher risks of
exchange rate fluctuations
As Hyundai majorly concentrates on quality, most of its product are in premium category in
each segment. Hyundai is still struggling to make a better impact in small car segment in
terms of cost efficiency like other manufactures
Hyundai doesnt have any product match to compete in Corporate orders like Tata Indica V2,
Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most preferred in
both cab segment and government booking for bulk orders
Opportunities of HMIL
SIAM Society of Indian automobile Manufacturers, have stated that there is steady increase
in Car sales both Domestic and Indian contributing a valuable share in Indias Gdp
The export markets growth rate is 22.30% compared to last fiscal year
The saving consumption pattern of India is an added advantage for any segment doing
business in India. This was one of the major reason for Indian market to survive amidst
global recession
There is more scope of HMIL to enter into small car segment as its has dedicated R&D plant
in Hyderabad, India. Hyundai is one of the very few companies that has widest R&D network
across the world located in Korea, Europe, India, US, Japan
53
Hyundai has very good opportunity in entering into commercial vehicles and Recreational
vehicles as they are already doing well outside India. Currently HMIL has its focus only on
Passenger car segment
Threats of HMIL
Though Hyundai claims itself to have no direct competitors other than MUL, there are Indian
players like Tata, Mahindra imposing a strong threat for Hyundai Motors India to expand its
product category
Foreign Direct Investments flowing in Indian automobile space are not good signs for already
existing Giants like MUL and Hyundai.
Almost all major automobile players have started invading India to open up their market and
their manufacturing plant in India.Chennai is referred to as the Detroit of Asia!
Hyundai faced a slight decline in market share due to tough competition from Fords Figo
and Volkswagen- Polo
Many manufacturers have started to concentrate on small car segment as an alternative to
Nano. These will slowdown the expected sales of Eon.
TATA MOTORS
ABOUT THE COMPANY:
54
The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel
vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and
machine tools. The commercial diesel vehicles which were known Tata Mercedes Benz
(TMB) is now called Tata vehicles after the expiry of the collaboration agreement with
Daimler-Benz AG, West Germany. The company also used to manufacture pulp and paper
making machinery.
HONDA MOTORS
HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd.
(India) as the key promoters. Hondas models are strongly associated with advanced design
and technology, apart from its established qualities of durability, reliability and fuelefficiency.
MARUTI SUZUKI
Maruti Suzuki has a strategy for the future, says Bhargava The Hindu Business Line New
Delhi: 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.
MAHINDRA & MAHINDRA

It was in early 2004 that Anand Mahindra (Anand), vice chairman and managing director
Mahindra & Mahindra (M&M), heard Kenneth Ramsay (owner of Angus Valley Farm
Supply in the town of Elm Mott in Texas USA - population 200), rave about his Mahindra
tractor - the brand he and his townsfolk preferred to well known US tractor brands like John
Deere and New Holland. Anand realized that M&M had a real opportunity to become a 'truly
global' brand.
55
CHAPTER -6
SALES AND ADVERTISEMENT POLICY
Advertising Program
Gary Armstrong and Philip Kotler's "Marketing" describe four decisions you have to make.
Know what you need to accomplish with your advertising, called advertising objectives, and
how much you can spend on your advertising choices, called your advertising budget. Decide
what your advertising will say about your product and what media you're going to use, called
your advertising strategy. After your advertising strategy has been set into play, you need to
consider the effectiveness of your decisions, called evaluating your advertising campaign.
Advertising Objectives
You should have ideas of what you want from your advertising campaign. There are three
types of advertising objectives discussed by Armstrong and Kotler in their book--informative
advertising, in which you are letting customers know about your new product; persuasive
advertising, in which you try to convince customers why they should choose your product
over a competitor's; and reminder advertising, in which you consumers to continue choosing
your established product rather than going to a new product.
Advertising Budget
Armstrong and Kotler have four methods for the advertising budget of the product. The
affordable method is simple: The company's management makes a decision about what the
company can afford to spend on the product. The percent-of-sales method is based on a
percentage of the amount of sales the product is bringing in or is expected to bring in. The
competitive-parity method is when you try to match your advertising expenditures to your
competitors'. For the objective-and-task method, look at your product's advertising objectives.
You will then make a budget based on an estimate of how much attaining those objectives
will cost.
Advertising Strategy
For this, you have to decide what you want your advertising to convey about your product
and what types of media you are going to use. You will need a message strategy, which just
outline what you want the advertising to point out about your product. After you have a
56
message strategy, you will need a creative concept, the thing about your product's advertisers
consumers will remember. After that, you will come up with the execution styles your
advertising will use. Examples of execution styles are showing a specific lifestyle, a character
for the product, or evidence about the product (such as endorsements or scientific studies).
Now consider the media you want to use. You must know how many people you need to see
your advertising to decide what type of media to use, as every type of media reaches a
different amount of people. After that, consider what vehicles within the media, such as
specific TV shows or magazines, would work best for your product. When the vehicle is
chosen, you'll run your ads either with continuity, in which the ads are presented evenly in a
time period, or by pulsing them, in which the ads are run heavily for short bursts of time.
Evaluating the Campaign
Now is the time for you to think about what your advertising campaign is doing for your
product. Armstrong and Kotler describe two types of advertising results--the communication
effects and the sales and profit effects. In communication effects, you look at whether the
advertising is presenting the message you want. In the sales and profit effects, you can choose
to compare sales and profits with how much money has gone into advertising, or you can
conduct experiments to see what the effects of your advertising are (for example, you can
vary your advertising in different areas).
Difference Between Advertising and Sales Promotion

Advertising and Sales Promotion are different. They have differences in there use and utility.
Will try to explain it with example of HUTCH (Orange) to facilitate our understanding.
ADVERTISING
SALES PROMOTION
By using a variety of persuasive appeals, Besides giving reasons in the form of

it offers reasons to buy a product or different appeals, they offer incentive
service.
to the consumers to buy the product

or service now.
For new users, 1HUTCH no is given
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Eg:
Good
Network,
Promises
and free for 1 month &sms is free for 3
Delivers.
months.
Appeals are emotional or functional in Appeals are rational

nature.
Eg: the current ad of Wherever you go, It justifies whatever it says.
our network follows
Time-frame is long term.
Time frame is short term.
The primary objective is to create an To get sales quickly or to induce trial.

enduring brand image.
Indirect and subtle approach towards Direct
in
approach
to
induce
persuading customers to buy a product or consumers to buy a product or service

service.
immediately by temporarily changing

the existing price-value relationship
of the product or service.
Advertising Methods
1. Appeals to Emotion
When advertisers use this technique, they attempt to appeal to those emotional needs
experienced by all humans. The text will be worded to emphasize those needs. Some of the
common appeals to emotion include:
the need to be accepted by others
the need to have membership in an elite group
the need for self-acceptance
the need for security
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the need for family
the need for change
the need for excitement
the need to attract sex, be sexy , and/or have sex.
2. Associations
When advertisers use association, they attempt to associate their product with the people,
values and lifestyles depicted in the ads. Associations are positive and rely heavily on the
visual image created in the ad, but the text enforces the association. Products are commonly
associated to:
wealth / luxury
fame / prestige
happiness
success
youthfulness / health
excitement / adventure / risk
patriotism
independence / individuality / non-conformity
love / romance / sex
3. Fear Tactics
When advertisers use fear tactics, they attempt to sell their product by playing on our fears.
The reasoning is that if consumers buy the product the fear is abolished. Ads that use fear
tactics rely heavily on the text. Some common fear tactics are:
fear of death / aging / sickness
fear of failure
fear of poverty
fear of violence
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fear of bodily embarrassments
fear of sexual failure
Fear of failing to provide
Fear of aging / sickness
It is important to note that the advertising techniques of appeal to emotions, associations and
fear tactics may overlap. However, one technique should be dominant.
Advertising Example
When deconstructing Advertising techniques:
The text, visual and layout should all be considered and all should reinforce the predominant
advertising technique. Any one product can be marketed in a variety of ways, using a variety
of techniques. For example, an ad campaign for a diamond ring could be marketed through:
A. An appeal to emotion
Suppose the ad contains:
a visual of a woman peering longingly at a tray of diamond rings displayed in a store

front window
while her husband, with a smile on his face, watches from a short distance away.
the text reads "Show your love."

Then, the add is an appeal to emotion and the need is the desire to please someone
you love.
B. An association
If the ad contained:
a visual of a handsome man offering the ring to a beautiful woman
a luxuriously furnished apartment
a table set with wine and candles; and
a text which reads "Love has no price"
Then the add
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would be associating the purchase of the diamond ring to wealth.
Depending on the
positioning of the male & female, for example, a close embrace, the association may extend
to love and romance.
C. Fear Tactic
If the ad shows:
a man and woman warmly embracing while visibly displaying the diamond ring on
her finger and
the text reads, "He just gave her a diamond. She thinks its absolutely perfect. She
thinks he is too"
Then the ad technique
may be a fear tactic. The fear implied here is fear of failure to provide for a woman as other
men do or possibly fear of rejection if the viewer were to buy anything less than what the
intended woman thought was a perfect gift. On another note,
this type of ad would be considered a stereotype.
Why?
There may be other ways to interpret these ads
but these examples should demonstrate that:
products can be marketed through a variety of techniques
the visual, the text, the layout, and specific details combine to enforce the message, &
these details in an ad will distinguish the techniques of appeal, association & fear
tactic.
Just because
diamonds are generally expensive does not mean that association to wealth is the only
technique used to sell diamonds.
You must ask yourself:
Is this ad creating a need?
Is this ad associating the product to a positive image?
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Is this ad working on our personal fears?
. The Message of the Ad
Background: Where and when does the advertisement appear?

What is the size of the print ad or the length of the TV or radio
commercial? What product or service is the ad selling?
Target Audience: For whom is this advertisement intended?

What is the age, sex, social class, values and life-styles of the
intended audience? What details suggest this particular audience?
Hook and Story: How does the ad get our attention? What is
happening in the ad -- many ads tell stories. What "problems" will
the product solve? What are the advertisers trying to get you to
believe?
Summarize the story briefly.
The developmental
techniques of the story will be addressed in other sections.
Primary Informational Message: Some advertisements provide

you with knowledge about a given product, but many ads say
nothing about the actual product. What actual knowledge/facts, or
lack of, have been provided in the ad?For example, car
advertisements focus on mileage, acceleration, comfort and style.
Secondary Messages (techniques of structure): These are the

messages that are designed to "seduce" the potential consumer.
The may take the form of appeals to emotion, associations, or fear
tactics. They may appeal to the needs and desires of individuals
such as: guilt, security, sensuousness, social interaction, selfimprovement, community, cleanliness, get up and do, desire to
own, status, power, the need to help others. What are the
associations the ad makes with the product. What are the
advertisers trying to get you to believe? What messages is the ad
trying to send? In car advertisements the seduction may be the
use of models, or the most often feature is freedom of the open
highway - traveling in comfort and speed alone in one's freedom
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machine. What is the overall message of your ad?
Advertising Claims (techniques of language): What techniques

of language have been used in the ad? Identify, name, and discuss
the claims. Demonstrate any weaknesses in the claims. What are
the claims really saying?
B. Composition of Pictorial and Ad Copy (Techno-Effects)
Characters: What people (number, male or female, age, etc),

animals, animated characters are used in the ad?
Setting: What place, decor, time of day, era, lighting, natural or

artificial surroundings mark the ad?
Copy: What words ( whether written or spoken), slogans or

catchy phrases, and logos are used? How many times does the
name of the product appear?
Or how many times is it spoken?
What is the location and prominence of the product itself in the

ad? How are captions used to attract your attention?
Sound: What voice (male or female), music, natural noises,

special sound effects are used?
Visual: How are the elements in the picture arranged? Is there

any blank space? Does the ad contain juxtaposition ( seemingly
unrelated items placed close together or side by side)?
What is
the message connected to body language? Who or what is in the

foreground? Background? What details may have been left out?
Color and Lighting: Every color suggests a mood or tone. Is the

color bright and cheerful?
Warm and comforting? Cool and
professional? What kind of lighting has been incorporated: top

lighting, side lighting, bottom lighting, back lighting artificial
lighting, or natural lighting? ( Link to camera angles and shots)
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Point of View: What camera angles have been used -- close up,
long shot, looking up (low angle shot) or down (high angle shot),
looking in or out, sharing a person's perspective (eye-level shot).
(link to cameral angles and shots)
Details and Accessories: What clothing, jewelry, price tags and

other details are displayed in the ad. Remember that every detail
has been chosen for a purpose.
C. Summary Observations
Intended and Unintended Effects: What are the intended effects

of the ad? What are the products trying to do? Identify the
unintended effects of the ad. Imagine a wide spectrum of
responses to the ad. What other meanings (oppositional readings)
could audiences construct from the ad?
What the Ad Does Not Show: What information is withheld

from
the
audience?
Labor
involved?
Resources
Used?
Environmental Issues? Health concerns? etc...
Personal Reaction: How effective is the ad? Why does it work?

not work?
Does the ad conform to the advertising codes in
existence?
What codes are violated? Is this ad controversial?
Does the ad use shock value through sexual means or by raising

social issues?
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EVALUATION
the advertisement has been clipped and sent with the ad

deconstruction
the analysis has been written in complete sentences and proper

paragraphing; headings may be used
the message, the composition and the summary of the ad have all
been addressed
individual topics within the main headings have been addressed as

they pertain to the ad
the student has attempted to explain the possible reason/s for the
the choices made in the actual ad construction; why were these
choices made?
if the student is unsure of a particular detail, he/she still addressed

the concern and offered a possible explanation
the analysis reflects application of the advertising information

presented in this module
the analysis is neat and organized and demonstrates critical

thinking
SALES
PROMOTION
Sales promotion refers to many kinds of incentives and techniques directed towards
consumers and traders with the intention to produce immediate or short-term sales effects.
DEFINITION OF SALES PROMOTION
Sales promotion includes incentive-offering and interest-creating activities which are
generally short-term marketing events other than advertising, personal selling, publicity and
direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the
purchase and other desired behavioral responses of the firms customers.
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Sales promotion offers a direct inducement to act by providing extra worth over and above
what is built into the product at its normal price. These temporary inducements are offered
usually at a time and place where the buying decision is made. Not only are sales promotions
very common in the current competitive market conditions, they are increasing at a fast pace.
These promotions are direct inducements. In spite of the directness, sales promotions are
fairly complicated and a rich tool of marketing with innumerable creative possibilities limited
only by the imagination of promotion planners. Sales promotion is often referred to by the
names of extra purchase value and below-the-line selling.
Today we find companies in almost all sectors offering some sort of a promotion scheme.
These sectors range from automobiles to beverages, from financial services to foods, from
household durables to services, from household products to business products, from personal
care to textiles and apparel.
Sales Promotions are activities that affect how and when people buy and thus attract new
audiences and increase sales. It's an all encompassing term that covers everything apart from
advertising, publicity and direct marketing, although these might also be used to deliver your
sales promotions. SalesPromotion offer people (consumers) incentives to buy and so close a
sale already made in the consumers mind. Its major strength is its impact and influence, in
getting the consumer to make a purchase in response to a message, advertisement, coupon,
point-of-purchase device or a special demonstration at the point of sale. For any Sales
Promotion to be successful, it must be part of an overall marketing strategy and form part of
your marketing mix (ask for our publication on the Marketing Mix for more details).
Sales Promotion is often interfaced withprice with discounts being a commoningredient as
well as:
1) sampling or learning opportunities
2) joint promotions or collaborations with third parties
3) special events
4) competitions
5) incentives
6) value adding
7) other rewards
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The techniques of Sales Promotion are used both to motivate people who sell to improve their
performance as well as to induce consumers to purchase their goods and services. Sales
Promotion works most closely with advertising, but its also connected with all other
elements of marketing: production services, packaging, price, and distribution. At the
manufacturing and wholesale levels of distribution, the methods used to motivate personnel
to meet specific goals usually fall into two categories - sales incentive prizes (such as
merchandise, travel, or cash awards) and sales contests. Both are based upon the salesperson
reaching an objective above the normal sales budget. Consumer promotions encompass a
wide variety of techniques, including:
1) Sampling of goods or services
2) Redeemable "money-off" coupons to encourage the trial or testing of Products
3) Special price-reduced packages
4) Mail-in premium merchandise offers
5) Cash or coupon refunds by mail
Promotional activities can be wide and varied and can include:
Advertising
Public Relations
Affinity group promotions
Exhibitions
National Insurance on Incentives
From 6 April 2000, where a third party provides workers with awards in non-cash vouchers
as part of an incentive scheme, the third party may pay the national insurance contributions
(NICs) rather than employers having to report and pay NICs on incentives they do not
control. In those circumstances only, the NICs liability for non-cash vouchers is changed
from Class 1 (employee and employer) to Class 1A (employer only) NICs liability.
Sales promotion describes incentives and rewards to get customers to buy now rather than
later. Whereas advertising is a long-run tool for shaping the markets attitude toward a brand,
sales promotion is a short-term tool to trigger buyer action. No wonder brand managers
increasingly rely on sales promotion, especially when falling behind in achieving sales
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quotas. Sales promotions work! Sales promotions yield faster and more measurable responses
in sales than advertising does. Today the split between advertising and sales promotion may
be 3070, the reverse of what it used to be.
The growth of sales promotion reflects the higher priority companies are attaching to current
sales than to long-term brand building. It is a return to transaction marketing (TM) rather than
relationship marketing (RM).
Reasons for Growth of Sales Promotion
There are a number of reasons that are favorable to the growth of sales promotion:
1. Increasing Competition
The air of change is gaining momentum after the introduction of economic liberalization. Due
to increase in competition, companies are finding it increasingly difficult to compete on
quality. They are therefore resorting to more innovative methods of sales promotion. In order
to have a competitive advantage over its competitors like Levis, Pepe, Killer and others,
Spykar Jeans, once a year has a grand sale of upto 50%.
2. Customers Have Become More Price Sensitive
This increased price sensitivity is a direct result of rampant inflation. Economic recession is
likely to fuel this trend further, as consumers and dealers become more sensitive towards
prices. If the customers get branded jeans at half the actual price, then they are definitely
going to make huge purchases of Spykar Jeans because they want value for their money, as
they are price sensitive.
3. Sales Promotions Generally Create An Immediate Positive Impact On Sales
Advertising, personal selling and other methods of promotion produce slower sales response
compared to sales promotion. Sales promotions are mostly for short duration, for a specified
period, leading to a sense of urgency in consumers to buy now. This creates an immediate
positive impact on sales.
4. Products have become more standardized
In many product categories, there is a proliferation of brands; many of them are line
extensions and me-too brands. Most brands are being perceived by consumers to be more or
less similar within a given price range because of the inability of manufacturers to develop
truly differentiated products. Under these circumstances, advertising messages are unable to
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strongly influence the consumers perceptions and create brand franchise. As a result of these
perceptions of similarity among brands, marketers have no way but to compete on the basis
of extra benefit offered through sales promotion. Competing companies struggle to capture
market share by using every tool likely to bring sales success.
There are many unbranded jeans sold at shopping malls and places like linking road, bandra
which are bought at half the price of actual branded jeans. People who are money conscious
buy such jeans. Therefore, Spykar Jeans comes up with such discounts, which helps them in
increasing their sales and also in stock clearance, if any.
5. Consumer Acceptance
As competition intensifies and promotions proliferate, consumers have learnt to earn the
rewards of being smart shoppers. Over a period of time, they have also learnt that brands on
promotion are not necessarily of lower quality.
Spykar Jeans, if sold at disount rates, are not perceived to be a brand of low quality. Instead,
if word is out of a mega discount scheme for Spykar Jeans, then people even time their
purchase accordingly.
6. Advertising Has Become More Expensive And Less Effective
All the advertising media have become quite expensive. Audio-visual medium, which is
considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a
10 second exposure during prime time. In many cases, consumers have reached a point of
boredom due to excessive advertising on TV. Some consumers even consider advertising as
an intrusion into their privacy, leading to zapping (surfing channels). Firms with small
budgets cannot compete with big companies, which spend huge sums of money on
advertising. For these small budget firms, sales promotion is a more cost-effective promotion
method to produce sales results.
7.Trade Has Become More Powerful
Retailers and wholesalers have become powerful and find themselves in a position to demand
extra facilities from the companies. They Channel members demand more incentives to get
the desired results. Manufacturers do not seem to have any alternatives but to concede to their
demands, keeping in view the competitive market conditions. In shopping malls like Globus
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and Lifestyle, decent margins have to be paid to them in order to have shelf visibility for your
brand.
8. Emphasis On Sales Volumes
Towards achieving the long-term profit goals, manufacturers try to attain high sales volume.
Brand managers and product managers find themselves under pressure to achieve short-term
sales results for the sake of their careers. Compared to any other promotional method, sales
promotion is a more effective method to generate short-term sales volume.
9. Sales Promotions Maximize Profits
A number of economic theories conclude that a company can maximise profits by using sales
promotion. Such promotions can permit price discrimination by allowing the brand to
compete in 2 or more different market segments. Sales promotion may allow a premium
brand to compete with a lower tier brand among price sensitive consumers. For example, a
premium brand of toilet soap may be on promotion in some price sensitive markets, while in
the remaining markets it is sold at its normal price.
10. Introducing An Element Of Interest:
There are a number of promotions, which are often called interest promotions. Some of the
more
popular interest promotion techniques are samples, contests, and sweepstakes, free premiums
and mail-in premiums. These promotions create an element of interest and excitement, and
consumers enjoy these and response enthusiastically to such contests and sweepstakes, etc.
11. Impulse Buying Is Increasing
The number of marginal customers is increasing. Displays at the point of purchases lead to
impulse buying by consumers, more so if the items on display are not expensive. There is a
popular saying in Hindi, jodikhtahai, vohbiktahai.
12. Sales Promotion Specialists Are Available
As a result of economic liberalisation, the number of management institutions has increased.
This has lead to the availability of specialists, who are not only well paid but can handle this
specialised work more efficiently in the current market conditions, where sales promotion has
become more important.
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13. Excess Stocks

Because of increasing number of brands, it is difficult for manufacturers and dealers to
anticipate future sales. This, at times, leads to excessive inventories, and the quickest way to
clear that is to go for sales promotion.
Advantages of Sales Promotion
Sales promotions have a significant effect on the behaviour of consumers and trades people.
Such promotions can bring in more profits for the manufacturers because they permit price
discrimination.
1. Price discrimination:
Producers can introduce price discrimination through the use of sales promotions. They can
charge different prices to different consumers and trade segments depending on how sensitive
each segment is to particular prices. Coupons, special sales events, clearance sales and
discounts are examples to explain the phenomenon.
Often such price discrimination are offered in specific cities in the country, Bajaj Auto Ltd.
started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you
get Rs.3000/- off, valid only in Ahmadabad.
2. Effect on consumer behaviour:
As sales promotions are mostly announced for a short period, customers may feel a sense of
urgency and stop comparing the alternatives. They are persuaded to act now rather than later.
With every 500g pack of Tang, you get a free Tang glass. Offer valid only till stocks last.
3. Effect on trade behaviour:
Short-term promotions present an opportunity and encourage dealers to forward buy. This
forward buying ensures that retailers wont to go out of stocks. As dealers have more than
the normal stocks, they think it advisable to advertise in local media, arranged displays and
offer attractive promotion deals to consumers. These actions help in increasing the store
traffic. Buy 2 dozen shampoo sachets & get 2 sachets free.
4. Regional Differences:
The South is generally characterised by greater degree of going out and people tend to drink
outside the house. The Tamilian, consumer in particular, is value oriented, rational and looks
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up to film stars, while the Keralite is more international in his outlook. The Bangalorean is as
cosmopolitan as his Mumbai or Delhi counterpart. Such factors have to be taken into
consideration while providing incentives to the customers.
Disadvantages of Sales Promotion
While sales promotion is a powerful and effective method to produce immediate short term
positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is
speed up the killing of a bad product.
1. Increased price sensitivity
Consumers wait for the promotion deals to be announced and then purchase the product.
This is true even for brands where brand loyalty exists. Customers wait and time their
purchases to coincide with promotional offers on their preferred brands. Thus, the routine
sales at the market price are lost and the profit margin is reduced because of the discounts to
be offered during sale-season.
The Diwali Bonanza Offers on electronic goods.
2. Quality image may become tarnished:
If the promotions in a product category have been rare, the promotions could have a negative
effect about its quality image. Consumers may start suspecting that perhaps the product has
not been selling well, the quality of the product is true compared to the price or the product is
likely to be discontinued because it has become outdated.
The Smyle Powder offer of Buy 1 and get 2 free went on and on. Ultimately people
stopped asking for the product as the on-going sales promotion strategy made the customers
perceive it to be a cheap and an inferior product.
3. Merchandising support from dealers is doubtful:
In many cases, the dealers do not cooperate in providing the merchandising support nor do
they pass on any benefit to consumers. The retailer might not be willing to give support
because he does not have the place, or the product does not sell much in his shop, or may be
he thinks the effort required is more than the commission/benefit derived.
4. Short-term orientation:
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Sales promotions are generally for a short duration. This gives a boost to sales for a short
period. This short-term orientation may sometimes have negative effects on long-term future
of the organization. Promotions mostly build short-term sales volume, which is difficult to
maintain. Heavy use of sales promotion, in certain product categories, may be responsible
for causing brand quality image dilution
PULL STRATEGY
In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and
consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free
samples, consumer premiums, etc are used. If this strategy is also chosen to include
advertising, then, there are large advertising expenditures.
The objective of such promotional efforts would be to create sufficient consumer demand to
pull the product through the channels, that is the consumers are encouraged to demand the
product from retailers who in torn place orders with wholesaler or manufacturer to meet the
consumer demand.
This strategy may require little promotional efforts from the resellers except to stock input the
product on shelves.
A pull strategy is appropriate when
The product demand as high.
It is possible to differentiate the product on the basis of real or emotional features.
Brand consumers show high degree of involvement in the product purchase,
There is reasonably high brand loyalty and
Consumers make brand choice decision before they go to the store.
Push Strategy for Sales Promotion

If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer
becomes very dependent on their personal selling abilities and efforts.
The promotional efforts are focused at pushing the product through the distribution channels;
the resellers may be required to display, demonstrate and offer discounts, to sell the product.
The communication to resellers is generally through trade circulars or the sales
force.
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Push strategies generally appropriate for
Product categories where there is low brand loyalty
Where many acceptable substitutes are available in the market.
Relatively new products are to be launched
When the brand choice is often made in response to displays in the stores,
The product purchase is unplanned or on impulse and
The consumer is familiar and has reasonably adequate knowledge about the product.
Manufacturers, who cannot afford to engage in sustained mass advertising, often use push
strategy and offer effective incentives to dealers.
Retailer promotion: Buy Cadburys products worth Rs.3000/- and get any 30 chocolates
worth Rs.5 each free.
Through this offer the company is pushing its product to the retailers and now that the retailer
has enough incentive the retailer stocks more and thus it becomes essential for the retailer to
push the product to the consumers.
Techniques of Sales Promotion
Sales promotions directed at the end-user, whether by the manufacturer or the retailer, are
called consumer sales promotions. Manufacturer announced promotions to consumers are
based on
Objectives of consumer market sales promotions
The following basic objectives can be pursued with sales promotions in the consumer market:
1. Stimulate trial purchase:
When a firm wants to attract new users sales promotions tools can reduce the consumer
Consumer Sales Promotion and Methods of Promotion
Price discounts or price-off deals:
Price deals are probably the most commonly used promotional techniques.
A price deal for a customer means a reduction in the price of the promoted product and the
consumer saves money on purchase.
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Example:
Colgate fresh energy ice blue gel (Colgate India) 50 gm pack, Rs. 5.50 off on normal price,
now available at Rs. 12.50 only.
Price discounts are communicated through POP advertising, window displays, sales people,
advertising in newspapers, magazines and TV ads.Such promotions work very well in gaining
the attention of consumers, particularly at the point of purchase among similar brands and
may also encourage unplanned or impulse buying.
Price pack deals
Price pack deals are also called value packs. They can take any of the two forms:
1. Bonus pack
In case of a bonus pack, an additional quantity of the same product is offered free when the
standard pack size of the product is purchased at the regular price.
Example:
Godrej Colour Gloss triple action shampoo, offers 20% extra free. 100ml +20ml.
Sunsilk shampoo (HLL) 400ml bottle gives 33% more free.
Dettol shaving cream get 40% extra free.
Bisleri 20% extra free (Bada Bottle, Same price)
The Banded pack is when the marketer develops special packs of the product containing more
quantity but the price is proportionately low. This is a method to load the consumer up with
the product. This technique is often used to introduce a new large size of the product or to
encourage continued usage and also to increase consumption.
The offer is termed as banded pack when 2 or more units of the products are sold at a
reduced price compared to the regular price.
Another variation of this technique is buy 1 get 1 free or some similar offer, it could be
same for less or more for the same.
Example:
Fairglow soap buy 3 get 1 free,
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The main advantage of this tool is that extra product may encourage increased usage and help
sustain the habit. Also among other similar brands, a bonus pack stands out at the point of
sale.
2. Refunds And Rebates:

Refund is the repayment of total money paid for purchase, while the rebate represents
repayment of only part of the money paid for the purchase. Refund offers seems to work very
well in guaranteeing the trial of a product or service since there is no risk involved for the
customer because of the promise of total refund of the purchase amount. Refunds and
After having launched it new product Whisper Ultra Thin, confident about the product quality
and confident about offering the promised product, to increase its trail and usage, had started
the money back offer.
3. Coupon:
A coupon entitles a buyer to a designated reduction in price for a product or service. Coupons
are the oldest and most widely used form of sales promotions. Coupons bear an expiry date
and cannot be redeemed after the cut off date.
The main Advantages of coupons are:
1.Encourage brand switching
2.Stimulate trial for a product
3.Take off the attention from price
Fair and Lovely dark circle removal cream to create more product trials has coupons in the
newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack.
4. Contests and Sweepstakes:
Contests and sweepstakes can draw attention to a brand like no other sales promotions
technique. A contest has consumers compete for prizes based on skill or ability. Winners in a
contest are determined by a panel of judges or based on which contestant comes closest to a
predetermined criterion for the contest.
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5.Sampling:
Getting consumers to simply try a brand can have a powerful effect on future decisionmaking. Sampling is a sales promotion technique designed to provide a consumer with an
opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a
popular technique is an understatement. Sampling is particularly useful for new products, but
should not be reserved for new products alone. It can be used successfully for established
brands with weak market share in specific geographic areas.
Sampling Techniques
1.In-store sampling
Lakme has in-store trail products. Since it in the cosmetics market it is very essential to
provide samples, many stores in Mumbai from time to time have Lakme sampling offers.
Where they allow you to try the product and then buy it.
2.Door-to-Door sampling
Whisper have done door-to-door sampling, sampling through schools, newspapers, etc. even
now after so many years of its launch it does sampling because of the new target base that
gets added every year.
3.Newspaper sampling
align="justify">Again Whisper and Pantene have done sampling through the newspapers.
4. On-package sampling
Fair glow, a lot of free Fairglow soaps were available with many other products, especially
other HLL products.
5.Mobile sampling
Many road shows and mobile vans distribute free products or offers.
Free Movie tickets, disco passes, pensare often distributed.
6.Trial offers
Trial offers have the same goal as sampling to induce consumer trial use of a brand- but
they are used for more expensive items. Exercise equipment, appliances, consumer
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electronics, etc. the expense to the firm of course can be formidable. Segments chosen for this
sales promotion technique must have high sales potential.
Premiums are items offered free or at a reduced price, with, the purchase of another item.
Many firms offer a related product free.The main advantage of Premiums is that they offer
not only that one product but also another product, which may influence the customer, a lot to
buy the product, especially if the other product is worth it.
Also new products are given free with established brands to stimulate trial of the new brand.
Ponds Buy Ponds cold cream 100ml and get a ponds body lotion 50ml pack free.
Pepsodent toothpaste buy 100gm and get 4 Clinic Plus sachets free.
Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens, calendars, etc.
The message gets placed on a useful icon, and is given to the consumers with no obligation.
Pepsodent toothpaste 100gm pack get free dental insurance worth Rs.1000.
Buy a Fairglow fairness cream and get a mirror free. Many other kids products are influence
a lot by such specialties especially liked by the kids like tattoos, masks, tazo, cricket bats etc.
hence products that have such offers sell more than the other brand available.
Ruffles lays, get free Tazo,Rasna, get free Prankies
Continuity/frequency Programmes
In recent years, one of the most popular sales promotion techniques among consumers has
been frequency Programmes. The main objective of such Programmes is encouraging
repeat purchases or repeated visits to particular retail shops. Frequency Programmes offer
consumers discounts or free product rewards for repeat purchase or patronage of the same
brand or company.
Shoppers stop started the First Citizens Club and enrolled customers as members of the
shoppers club by charging a fee of Rs.150. The customers were entitled to a variety of
benefits by collecting points.
Brand placement
Brand placement often referred to, as product placement is the sales promotions technique of
getting a marketers brand featured in movies and television shows. The use of a brand by
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actors and actresses or the mere association of the brand with a popular film/ television show
can create a positive image and have a huge impact on the sales of a brand.
Coke in Yaadein , Pepsi in Khushi, ICICI Bank in Baghbaan
Event sponsorship
When a firm sponsors or co-sponsors an event such as a rock concert, a cricket match, etc. the
brand featured in an event immediately gains credibility with the event audience. The
audience attending an event already has a positive attitude and affinity for the contest that
they choose to attend. When this audience encounters a brand in this very favourable
reception environment, the brand benefits from the already favourable audience attitude.
Samsung & LG keep sponsoring cricket matches.
Exchange offers
Consumer durables market is the one where exchange offers are used the most. Almost all the
TVs, Refrigerators, Washing Machines, etc. have exchange offers.
Samsung - On exchanging old TV for a new Samsung Plano, uptoRs. 5000 off.
On exchanging old TV for a new Samsung Hitron Digital, uptoRs. 3000 off.
On exchanging old refrigerator for a new Samsung refrigerator, uptoRs. 8000 off.
Internet promotions
They are the most recent form of sales promotions. They are promotions that are done via the
Internet. It is becoming increasingly popular because of the large use of Internet. But still it
has a lot to develop.
Information on Product Advertising
A product is anything that can be presented to a market, so a product is not only an item you
can buy in stores, but also a brand, an organization, a service or even an idea, and you need to
advertise your product to get your consumers to notice you.
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CHAPTER- 7
Customer relationship management and satisfaction survey
80
Acknowledgement
Before we embark upon the details of this project, let me take this opportunity to express our
heartiest gratitude towards the people who have provided invaluable help & support through
the entire duration the project. I am thankful to our facilitator MS. YOGITA SHAINI for his
continuous guidance & support.
I would like to thank her for giving us excellent suggestion and affectionate, encouraging
through development of project and for devoting their precious time. We offer thanks to them
for co-ordination and grateful to all our well-wishers who extended their support and for their
valuable help throughout the work.
OBJECTIVE
To understand the CUSTOMER RELATIONSHIP MANAGEMENT in automotive industry
(in passenger cars) & than sync it with CRM of HYUNDAI MOTORS.
INTRODUCTION OF TOPIC
To understand the real business scenario about the practice of CRM in Indian Automotive
industry & than compare it with HYUDAI motors in passenger cars.
The automobile industry in India is the tenth largest in the world with an annual production of
approximately 2 million unitsis expected to become one of the major global automotive
industries in the coming years. A number of domestic companies produce automobiles in
India and the growing presence of multinational investment, too, has led to an increase in
overall growth. Following the economic reforms of 1991 the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. The monthly sales of passenger cars in India exceed 100,000 units. According to
Society of Indian Automobile Manufacturers in 2008-09 the cumulative growth of the
Passenger Vehicles segment during April 2008 March 2009 was 12.17 percent. Passenger
Cars grew by 11.79 percent, Utility Vehicles by 10.57 percent and Multi Purpose Vehicles by
21.39 percent in this period.
BRIEF ABOUT COMPANY

The 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
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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. He created it and
transformed it from a mere assembler of Ford models to a designer and exporter of its own
cars and engines in less than four decades. 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.
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 30 variants of passenger cars across segments.
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL has set up its
second plant, which produces an additional 300,000 units per annum, raising HMIL's total
production capacity to 600,000 units per year.
HMIL has invested to expand capacity in line with its positioning as HMC`s global export
hub for compact cars. Apart from the expansion of production capacity, HMIL currently has
271 strong dealer network across India, which will be further bolstered in 2009.
PRODUCTS OF HYUNDAI COMPANY
Tucson:
Veracruz:
Hyundai Verna
Sonata:
Getz
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i30:
METHODOLOGY
We collected information from both primary & secondary data. I visited various dealers
showroom HYUNDAI and asked their respective relationship managers about the companys
offerings, to get detailed knowledge of CRM applications & practice in real business
scenario.
Findings & Analysis:
BUSINESS STRATEGY & CRM
Three key phases:
Customer Acquisition.
Customer Retention.
Customer Extension.
Three contextual factors:
Marketing Orientation.
Value Creation.
Innovative IT.
Customer Acquisition
This is the process of attracting our customer for their first purchase. We have acquired our
customer.
Customer Retention
Our customer returns to us and buys for a second time. We keep them as a customer. This is
most likely to be the purchase of a similar product or service, or the next level of product or
service.
Customer Extension
- Our customers are regularly returning to purchase from us. We introduce products and
services to our loyal customers that may not wholly relate to their original purchase. These
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are additional, supplementary purchases. Of course once our loyal customers have purchased
them, our goal is to retain them as customers for the extended products or services.
Marketing Orientation
- Means that the wholes organization is focused upon the needs of customers. Customer
needs are addressed by the Three Levels of a Product whereby the organizations not only
supplies the actual, tangible product, but also the core product and its benefit, and also the
augmented product such as a warranty and customer service. Marketing orientation will focus
upon the needs of consumers for all three levels of a product. (N.B. 'market' orientation and
'marketing' orientation are not the same).
Value Creation
- Centres on the generation of shareholder value based upon the satisfaction of customer
needs (as with marketing orientation) and the delivery of a sustainable competitive
advantage.
Innovative IT
- is exactly that - Information Technology must be up-to-date. It should be efficient, speedy
and focus upon the needs of customers. Whilst IT and/or software are not the entire story for
CRM, it is vital to its success. CRM software collects data on consumers and their
transactions. Huge databases store data on individuals and groups of individuals. In some
ways, CRM means that an organization is dealing with a segment of one person, since every
consumer displays different purchasing habits and preferences. Organizations will track
individuals, and try to market products and services to them based upon similar buyer
behaviour seen in other individuals (e.g. When Amazon tells you that customer that
viewed/bought the same product as you, also bought another product).
AUTOMOTIVE industry , Companies focus upon the needs of customer, not only providing
the tangible product i.e. CAR but also augmented product such as warranty, customer service,
providing more services than competitors, distributing free gifts, free vehicle check-up, etc &
now-a-days almost every big company use CRM software in collecting data on consumers &
their transaction, providing them customized service . After every new launch of a car,
companies give information about that same product to their loyal customers. Not only
companies stick to that car only but tries to sell accessories also like seat covers, Alloy
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wheels, music system so that customer doesnt have to go to several places & quite often
dealers give discount also in these items as a CRM business strategy .
Hyundai Motors has taken a phased approach to the implementation, with the goal of
achieving success in each phase before moving forward.
Phase 1, currently under way, focuses on capturing customer and vehicle data and automating
routine tasks.
Phase 2 will focus on leveraging data to improve customer interactions and streamline
product development and planning.
Phase 3 will focus on tuning the system and delivering additional value-added services to
customers. To address its competitive challenges, Hyundai Motors began standardizing its
customer-facing business processes companywide, laying the foundation for stronger dealer
relationships, improved operational efficiency and effectiveness, and a better customer
experience. This has posed numerous challenges, as it involves working with 250 dealer
organizations and more than 1,600 locations staffed by more than 10,000 salespeople across
India.
CUSTOMER KNOWLEDGE
Customer knowledge refers to understanding your customers, their needs, wants and aims is
essential if a business is to align its processes, products and services to build real customer
relationships. Customer knowledge can be approached from two ends. Firstly, you could say
that customer Knowledge is the "collection of information and viewpoints that an
organization has about its customers". Using this definition, the role of customer knowledge
management is to capture and organize this data to allow it to be shared and discussed
throughout the organizational alternative definitive of customer knowledge is that it is the
"collection of information and insight that you need to have to build stronger customer
relationships". From this point of view what you currently know about your customers may
not be sufficient. You may need to put in processes and systems to gather more information
and data about who your customers are, what they do and how they think.
CUSTOMIZATION:
Customization bonds approach suggest that customer loyalty can be encouraged through
intimate knowledge of the individual customers and through the development of one-to one
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solutions that fit the individual customers needs. HYUNDAI MOTORS believes in
'Customer is THE KING', and also knows well how to make them feel One. They have an
extensive follow up programme and prompt service. This helps them to change their
strategies and customize their services to fit developing customer needs. For this purpose,
they always request the customers to fill in their feedback form that follows the service/repair
visit. If a low score is received on their feedback form, they would go out of the way to
apologize for the error. Simultaneously, they provide technicians who visit their home place
in order to attend the issues and rectify them to their satisfaction level. Follow up calls are
made to ensure that how efficiently their problems were resolved.
RELATIONSHIP POLICY:
The customer is tied to the company primarily through financial incentives lower prices for
greater volume purchases or lower prices for customers who have been with a firm a long
time.
As we know, the acquisition cost is not the only cost one faces when buying a car. it may
not necessarily be affordable to maintain, as some of its regularly used spare parts may be
priced quite steeply. Hyundai Motors provides very good after sale services to its customers.
It is in the economy segment that the affordability of spares is most competitive as compared
to others.
It also provides its long term customers either with stable prices or lower price increases as
compared to the new customers.
HYUNDAI motors provides financial incentives and rewards to the customers who bring
more business to their service station by recommending and spreading good word of mouth to
others about their services.
CRM Systems and Implementation
These are some of the key features for which AUTOMOTIVE SECTOR applies CRM
software:
Sales management shares customer information between sales, service and parts
departments
Vehicle management gives complete vehicle data along with sales, service and financial
history, as well as dealer and license information and owner and contact information
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Recommendations
Many organizations operating in automobile market still do not differentiate their CRM
activities at the segment level. They contact each prospect with the same Frequency instead
of applying a level of effort consistent with the cost of acquisition and profit potential. Their
unrefined use of resources not only leads to wasted investment but can cause annoyance
among customers who are either being oversupplied or undersupplied with attention.
Companies keep the name of financing company as the owner of the vehicle and in many
cases does not have the record of effective owner of vehicle who was responsible for the
purchase decision.
In CRM Indian Automobile industry has to learn much from other service industries such as
airline industry. Each time a customer approaches a service agent, his entire history was
flashed on screen.
Customer knowledge can be used to give customer specific offer on purchase of second
vehicle in family.
CONCLUSION
Hyundai Motors has proven excellence over the years through its technologically advanced
products, market expansion, customer satisfaction and increasing sales. Hyundai Motors
consistently strives to increase shareholder value, build stronger customer relations and work
with its business partners to provide the best value for money. The company is also involved
in accelerating the countrys economic growth and protecting the environment. With the
initial financial backing of the giant parent company, Hyundai Group, the division has built a
strong business over the past 60 years and continues to show strong financial results. The
continual improvement and introduction of new products in the market have allowed it to
successfully enter as well as dominate the automobile industry in India. With increasing
sales, employees, product offerings, manufacturing facilities and distribution centres along
with expansion in India, the company seems to have a promising future.
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Chapter- 8
Social corporate activity of the company
Hyundai Social Corporate activity of the company
Social Corporate activity has become the key issue in company-society relations. SCR has
taken a position of the core pillars of Hyundai Motor as the company strives to establish a
new Sustainable Business Management System based on its five primary business principles.
The Conceptal Areas

Hyundai Motor socially responsible management covers three conceptual areas: economic
responsibility, social responsibility, and environmental responsibility.
Area of strategic focus
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Corporate social responsibility covers three areas: trust-based management, environmental

management..
In 2007, a year dedicated to global social contribution, Hyundai Motor Company prepared its
infrastructure to execute corporate social responsibility , as well as social contributions. It
established the 'Hyundai Motor Global CSR Network' with primary production and sales
subsidiaries around the world, and will establish a network covering all its subsidiaries
worldwide, by continuously extending the network. Hyundai also laid foundations by
promoting global CSR (Corporate Social Responsibility) activities, and by developing and
opening the 'Global CSR Web site' for information exchange.)
Corporate Social Responsibility (CSR) India

Corporate have Social Responsibility (CSR) targets to help improve community living. In
India, though the corporate understand their accountability towards the society and are
willing to take initiatives for the betterment, it becomes difficult for them to reach the
grassroots level.
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We thus join hands with the corporate to help them advance their welfare initiatives to the
needy families and save on their time and human resources. We help the corporate meet their
Corporate Social Responsibility targets through NGOs with expertise in the respective field.
The very foundation of TKF was laid on the realization of a group of young corporate
professionals that it was their social responsibility to give back to the society.
Achieve your Business Social Responsibility Goals
Support some of our programs and social service initiatives.
Adopt a child, family, school, or a village to meet you social responsibility.
Corporate can sponsor a vocation training program through our Sponsor a Skill
drive.
Buy greeting cards from our partner NGOs.
With Corporate Social Responsibility in India having acquired a new dimension in the
recent years, more and more companies are increasingly realizing that it is a good hearted
investment, which brings manifold benefits to the company. Thus, all CSR activities are
being designed in alignment with the corporate business strategies.
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Once you register with us for your CSR activities, you can come online at any time even after
years and get the collated record of all the work done by you and all the people who have
benefited from your support.
CSR is not new to India; companies like TATA and BIRLA have been imbibing the case for
social good in their operations for decades long before CSR become a popular cause. Inspire
of having such life size successful examples, CSR in India is in a very nascent stage. It is still
one of the least understood initiatives in the Indian development sector. It is followed by a
handful of public companies as dictated by the very basis of their existence, and by a few
private companies, with international shareholding as this is the practice followed by them in
their respective foreign country. Thus the situation is far from perfect as the emphasis is not
on social good but rather on a policy that needs to be implemented.
A lack of understanding, inadequately trained personnel, non availability of authentic data
and specific information on the kinds of CSR activities, coverage, policy etc. further adds to
the reach and effectiveness of CSR programmes. But the situation is changing. And CSR is
coming out of the purview of doing social good and is fast becoming a business necessity.
The business case for CSR is gaining ground and corporate houses are realizing that what
is good for workers - their community, health, and environment is also good for the
businesses.
Corporate Social Responsibility Practices - the survey on CSR is timely and apt. The survey
is expected to facilitate formation of an alliance of CSR initiatives so that such initiatives can
be further stream lined, focused and converged to a powerful force of intervention. One of the
major objectives of the survey is to bring out in open the current status of CSR thereby giving
both the NGOs and the common man an understanding of the various initiatives undertaken
by corporate and the role that is played by the government in the field.
The survey underlines the various issues - current CSR policies, major stakeholders - their
current and future plans, geographical areas covered, role of civil society and government,
challenges, recommendations etc.
Eco-friendly i30 Blue makes Hyundais Blue DriveTM concept a production reality
(Offenbach, April 07th 2009) A new derivative has joined Hyundais successful i30 range, as
the first examples of the i30 Blue today rolled off the production line at the companys
factory in the Czech Republic. Fitted with the innovative Idle Stop and Go (ISG) system,
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i30 Blue offers reduced fuel consumption and CO2 emissions and is the first model to be
launched under the companys Blue DriveTM eco-initiative.
RSPCA
In WA and NSW, Hyundai supports the 'Million Paws Walk' which is the RSPCA's major
national fundraiser. Every year over 60,000 people and 25,000 pets hit the pavement to raise
much needed funds for the RSPCA.
Children's Hospital at West mead, Sydney
Hyundai Sydney metro dealers support the Children's Hospital at West mead in Sydney,
which is a stand-alone service dedicated to pediatrics. Wesley Hospital Kim Walters
Choices
In Queensland, Hyundai supports the Wesley Hospital 'Kim Walters' Choices Program
(Choices) which offers support for women and men diagnosed with breast cancer, and
women diagnosed with gynecological cancers and their families. For more information visit:
Royal Childrens Hospital Foundation
In Queensland, Hyundai supports the Royal Childrens Hospital Foundation through its
sponsorship of the 'Hyundai Harmony Cup', a multicultural community football competition.
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(i) Health Care

It will benefit the overall general public by preventive and curative health care programs,
related medical research and training programs, including awareness and campaign programs
through hospitals, medical schools, colleges, universities and institutions etc.
(ii) Education & Vocational Training
(iii) Road Safety
It will benefit the overall general public by road safety programs, related research and
training programs, including awareness and campaign programs through schools, colleges,
universities and institutions etc.
(iv) Arts, Science & Technology
It will benefit the overall general public by science and technology, promoting performing
arts and crafts, architecture, culture, heritage and cuisine, related research and training
programs, including awareness and campaign programs through schools, colleges,
universities etc.
dge and insight you need to improve decision making, leverage partnerships, manage risk,
and measure performance.
Who Is Right for the Program
The program is specifically designed for senior executives who direct corporate social
responsibility programs or oversee departments such as public affairs, philanthropy,
sustainability, environmental health and safety, or community affairs. Senior officers with
profit-and-loss responsibilities will benefit from attending.
What You Can Expect
Improving Your Organization's Performance
Corporate social responsibility (CSR) is integral to long-term business success. Today's
organizations must be increasingly mindful of the impact that their operations have on society
at large, and this requires much more than isolated measures. In a climate of heightened
social awareness and instant access to information, CSR must be a fundamental part of your
company's targeted practices, broad objectives, and overall culture.
93
Taking Your Skills to the Next Level

In this program, you will enhance your ability to set priorities, measure results, and
communicate the value of CSR efforts across your organization. Specifically, you will learn
how to:
Create competitive advantage through CSR
Assess risks and opportunities before making capital investments or other business
decisions
Align CSR strategies with organizational goals and capabilities
Evaluate current initiatives and consolidate efforts around key objectives
Present a business case for CSR initiatives
Implement CSR at all levels of the company
Understand how CSR directly affects current and future regulatory practices
Foster successful interaction with key internal and external stakeholders as well as
Managing Risk and Decision Making
Evaluating complex environments and potential impacts before investing capital or

making business decisions
Interacting successfully with governments, NGOs, and stakeholders
Decentralizing CSR to allow for local differences and optimizations across the
organization
Who Is Right for the Program

This program is designed for senior executives who direct CSR programs or oversee
departments such as public affairs, philanthropy, sustainability, environmental health and
safety, or community affairs. Senior officers with profit-and-loss responsibilities will benefit
from attending.
94
Past Participants Represented:

Industries
Nationalities
3%
Chem/Pharm/Bio
4%
Africa
22%
Consumer Products
7%
Asia
14%
Financial
14%
Europe
31%
Nonprofit Services
20%
Latin America
3%
Other Services
7%
Middle East
6%
Professional Services
48%
North America
17%
Raw Materials/Energy
3%
3%
Retail Services
Utilities/Telecommunications
95
Chapter-9
Findings
Suggestions
Learning
My Experience
Bibliography
96
FINDINGS
Examines the production, sales, and export growth rates of the sector, along with a
mention of the major manufacturers.
Identification of the opportunities for foreign companies in terms of exports,
technology transfers, strategic alliances, financial collaborations and JV's, in the
Indian vehicle sector.
The component-wise share of production is assessed.
Assessment of the implications of vehicle emissions
Demand forecasts till 2011.
Major changes occurring in the Indian market
A study of the market access strategies for companies
An insight into the profiles of big players of the Indian automotive sector.
97
Suggestions
Hyundai should improve after sale service to its customers.
Instead of focusing upper class customers Hyundai should focus on consuming class.
Hyundai should launch new models for youth generation.
It should increase its show rooms in rural areas also.
Products knowledge and demo services can be improved
Initial Services to new customers must be provided to make the new customers
familiar with the product.
98
MY LEARNINGS FROM THE PROJECT

No doubt that a field work or training can change ones attitude and behavior. In between
training course I have come to recognize my own potential and skills taking into mind my
dreams. Which has given me a right platform to make my career in corporate sector; there I
can utilize my skills and knowledge in a better way.
Planning and organizing: Planning about the given task and complete it within the time
boundary and try to put optimum utilization of available resources in the work.
Customer Focus: Understanding the customer focus planning and respond them
appropriate and satisfactory answer for making long term relationship with them.
Negotiations: How to build internal commitment and external credibility, through

effective negation and suitable influencing styles based on a clear understanding of
organizational decision making dynamics.
Team effectiveness: Ability to lead the team members and ability to get the work
done from them.
Personality Development: Working under the guidance of Mr. Vikas goel has been
a rewarding experience threw picking up some charismatic points from his personality I
tried to put on the customers. It enhances my confidence & presentations skills.
Achievement Orientation: Ambition to achieve the target within the given period
enhances my capability and helps in to overcome obstacles and give outstanding result or
outcomes.
Corporate Exposure: The achievements which I got from this training, will be
helpful in my professional life by this I learnt how I can do smart work with minimum
efforts.
I have gained several experiences in the field of marketing.
I have got the opportunity to meet various people, which fluctuate in different
situation and time. This summer training project has given me the opportunity to have
first experience in the corporate world.
I could understand the working culture of corporate.
99
Making plan for the next day and finding the concern person allowed me to increase
my communication ability, written as well as verbal.
My confidence to meet people has tremendously gone up.
I also attended the customer demonstration which gave me the knowledge about how
the customer can be convinced, how there queries are handled.
I also learnt very small-small things in the organization which is very necessary in any
flat organization like photocopying, fax the documents.
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MY EXPERIENCE WITH KRRISH MOTORS PVT Ltd.

These seven weeks with Krrish Motors Pvt. Ltd. are unforgettable for me. The experience,
which I got during these days, was tremendous. I have made good relationship with so many
people in frontline division & other division. Everybody over there I found nice & helping. I
also made some good friends of other B-schools who were also management trainee there. I
faced the odd situation in working life & got the adoption quality. The main thing I got from
my project was how to interact with various people.
Really, the experience I have got from my project will be very helpful to enrich and nourish
my career.
101
BIBLIOGRAPHY
BOOKS:
1) AUTHER:
BERI G.C
TITLE:
MARKEING REASEAARCH
PLACE OF PUBLICATION:
DELHI-110092
PUBLISHER:
PEARSON EDUCATION
DATE OF PUBLICATION:
2007
2) AUTHOR:
KOTLER PHILIP
TITLE:
MARKETING
MANAGEMENT
PLACE OF PUBLICATION:
DELHI
PUBLISHER:
TATA MCGRAWHILL
DATE OF PUBLICATION:
2007
NO. OF PAGES:
18 TO 24
Websites:
www.hyundaimotors.com
Date of site visited:
25th June,1st July,3rd July,5th July,6th July to 14th July
www.carwala.com
Date of site visited :
28th June, 29th June,1st July,3rd July,7th July
www.ifbeam.com
24th June, 25th June,1st July,5th July , 14th July
www.solvepappers.com
www.hayway.com
102
www.kotaksecurities.com
29th June, 30th June,,3rd July,5th Jul 12th July
www.driveincide.com
25th June, 27th June,1st July,3rd July,7th July to 14th July
www.scribed.com
Magazine:
Hyundai cars annual magazine.
Annexure
103
(A)
Questionnaire
Name:
Contact Number:
Email Id:
Age:
(1) Occupation:
(a) Government
(c)Business
(b) Professionals
(d) Housewife
(e) Retried
(2) Income:
(a) Upto 3,00,000
(b) 3,00,000 5,00,000
(d) 7, 00, 000 10,00,000
(e) Above 10,00,000
(c) 5,00,000 7,00,000
(3) Reasons for purchasing Hyundai Cars?

(a) Manufacturer Reputation
(b) Availability of Service
(c) Cost of the Vehicle
(d) Looks of the Vehicle
(4) Awareness about the car

(a) Television Advertisement
(b) Newspaper Advertisement
(c) Friends & Relatives
(5) How car is being purchased?
(d) Other Sources
(a) Through Loan
(b) Direct Payment
104
(6) What parameters do you consider while purchasing the Hyundai Cars?
(a) Looks (b) Price
(c) Colour (d) Engine Capacity (e) Pickup (f) Accessories
(7) Further Plans of the customers towards new car?

(a) Hyundai
(b) Opel
(c) Hindustan Motors (d) Maruti (e) Ford
(8) Purpose of buying the car?

(a) Own Use
(b) Company Use
(c) Taxi Service
(9) What is your opinion regarding the price of Hyundai Cars?

(a) Highly priced
(b) Reasonably priced
(c) Approximately priced
(d) Below Level priced
Any Suggestions
(f) Honda
105
WORD OF THANKS
This project report is a result of endless effort & immense degree of toil. I would like to thank
all those people who graciously helped me by sharing their valuable time, experience &
knowledge. I would like to express heartiest thanks to our chairman sir Dr. D. K. GARG
(Chairman), Mr. M. K. VERMA (Dean) and placement head Mr. T. K. GUHA for lending me
their kind support for completion of my project.
I thank all those who directly or indirectly supported me morally, financially and through
providing knowledge by which I could complete my project as well as summer training. I
thank to all those readers who will study this project in the future.
Last but not the least I am thankful to the management of Krrish motors Pvt. Ltd., Patna
(Bihar) & especially to my guide Mr. Rakesh kumar (sales Manager) whose Co-operation
and guidance was a milestone in completion of my project. Who influenced me to work
positively at each step by giving his precious time to discuss and to provide relevant
information and providing me co-operation and cordial environment for making me
comfortable during my stay in company?
Lastly, I express my gratitude to my parents and elders who financed this project and have
been a moral support to me during the project.

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1

SUMMER TRAINING PROJECT REPORT

A report submitted to IIMT, Greater Noida as a partial fulfillment of full time

Under guider by- Rakesh kumar(sales manager)

SUBMITTED BYDEEPAK KUMAR

UNDER THE GUIDENECE OF

ROLL NO. PGDM/11/11

IIMT COLLEGE OF MANAGEMENT GREATER NOIDA

During the curriculum of

management programmers a student has to attain a practical exposure of an organization on

Introduction of the company

Objective of the company

Products of the company

Sales and Distribution network in Bihar

Marketing & Sales strategy of the company in

Sales and Marketing strategy of its competitors.

Customer relationship management and

social corporate activity of the company

Introduction of the company

About the company

History of the company

Objective of the company

Mission and vision of the

The Hyundai Motor Company was founded in 1967. It produced

History of the company

Mission and vision of the company

Mid-and Long-term Strategies

contemporary and sharp from the outside with

spacious, elegant and cool. The 2.4 L VTVT

Sales and Distribution network in Bihar

How many DCs should you have?

Where should they be located?

What should be the configuration and strategy of each DC?

Which group of customers should each DC service?

Geographic shifts in production and consumption

Market segmentation, new markets and new customer service requirements

Cost increases in energy, plant and equipment maintenance, and labor

Government regulation or deregulation

C & F (Carry and Forward)

District wise Stockist

SALES PROMOTION HYUNDAI MOTOR

management is one of the major components of business management. Marketing evolved to

Hyundai Motor India Limited Annual Sales

Hyundai Motor India Limited Annual Sales

OBJECTIVES OF SALES PROMOTION

Building Product Awareness Creating Interest Providing Information Generally

Reinforcing the Brand

CLASSIFICATION OF SALES PROMOTION

Consumer Market Directed - Possibly the most well-known methods of sales

Business-to-Business Market Directed A small, but important, sub-set of sales

SALES & DISTRIBUTION

Marketing strategies for service firms

Hyundai's Entry in India

Workshops and Seminars

Banners, neon signs

The Stockist will represent 3 to 4 districts in a State.

The Dealer will represent a district or main City.

The Sub-Dealer shall represent a particular area or taluka.

The booking agents will be individuals working on freelance basis.

Sales and Marketing strategy of its Competitors

Comparison of strategy of Hyundai motors and its

Sales and Marketing strategy of its Competitors