Swot Analysis

Strength-

 With multiple product and varieties of offerings Kia motors has a wide product
portfolio. Some of them are SUV’s passenger cars etc.
 The an increase in the value of brand worldwide by 6.7% , Kia has an estimated
worth of 6.7 Billion USD. It is one of top 50 brands in the world.
 By positioning itself as experience provider and providing superior designing plus
performance, it is exceeding the customer expectation.
 With great research and development it has been able to come up with innovative
products such as electric cars, hybrid cars etc.

Weakness-

 Available only in niche market but not present wide audiences.

 The brand image is good at the origin country but lacks positive association in
countries like Europe and USA.
 The focus shift of business from formerly fleet sales to now retail car due to decrease
in demand of fleet vehicles was a wrong strategy.
 Most of the promotion activities and budget is spent in sporting events thus becoming
invisible in the retail sector.

Opportunities-

 Automaker have huge opportunity due to emerging markets.

 Government efforts to improve roads and infrastructure will lead to more demand of
automobiles.
 Urban migration, change in income pattern increasing women drivers will create a
positive impact in this sector.
 The spending in the research and development is going to help in the near future
where there is going to be demand for environment friendly vehicles.

Threats

 The number of competitors in this sector are many. Nissan, Toyota and Honda being
the biggest ones.
 With problems of global warming, quality control, environment friendly etc, the cost
is going to increase.
Hofstede’s framework-

India with score of 77 in power distance shows that there exists a hierarchy in organization or
structure and there exist unequal rights between the people top in hierarchy and the one lower
in hierarchy. Centralised power control is exercised and direct communications is expected as
to what are the functionality and expected outcomes by an employee.

With an intermediary score of 48 the Indian culture shows inclination towards both
collectivism and individualism. The people prefer working and socialising with large groups
but at the end there act according to their own good. The individualism has come in Indian
culture through their beliefs in the concept of rebirth.

With High score in masculine, it depicts that Indian culture is core towards achieving success
and believes in competition. The bets in the competition are the winner and win is going to
decide the leader in a category. India likes to show its success.

With a medium low score on uncertainty avoidance, India is a patient country which is ready
for unexpected situations. They are not threatened or try to avoid uncertainties.

India is dominated by the concept of “Karma”, thus a score of 51 on the dimension of long
term orientation. They believe the deeds of today are going to affect the future results and
help handling the future challenges.
The very low score of 26 in indulgence dimension shows how restricting is the society here.
Cynicism and pessimism has existence and people do not encourage fulfilment of desires.

Marketing mix of Kia

Product- Kia offers a diversified product portfolio .The presence of the product is mainly
into these categories-Compact cars, hybrid, minivans, sedans, electric cars, crossovers ,
concept car and special edition car. Some of its well known brands are Picanto, Cerato,
Optima, Soul, Cadenza and Sportage. The brand’s belief in quality of product with advantage
of design at affordable price is helping it to enter into new categories with innovative
products.

Price-Kia follows competitive pricing strategy in South Korea but due to its exporting of
vehicles to other countries like UK it charges them higher price. The price is high because
cost increases when exporting from direct manufacturing plants. It also does not belief in
offering any competitive discounts. As compared to its competitor Nissan does. It is trying to
enter into more premium segment and has gap between two segments of prices of its products
so that they do not overlap.
Place-With network of4000 dealers and serving in 170 plus counties the sales gain has been 3
million units. With 20 regional headquarters handling 342 sales offices, it has also
strategically got a network of 11 shopping offices which can serve Middle East, Europe, Asia
Pacific region and America. With combined efforts of 20 regional service centres and 243
service providers it also provides long term warranty.

Promotion- With association with major sporting events and activities Kia is well recognised
for its marketing policies. Some of the sports sponsored by Kia are FIFA, Australia open,
NBA etc. Apart from sponsorship it also has presence on print media, social media,
billboards, online, T.V etc. In order to gain recognition it has also collaborated with
sportspersons, athletes, teams etc., It uses story telling to depict the experience of using Kia
products and the quality and design with customer satisfaction. In order to address the
environmental problem Kia is also present in CSR activities and has tie ups with NGOs, local
communities etc.
Value Chain Of Kia-

https://www.hofstede-insights.com/country-comparison/india/

https://www.marketing91.com/swot-analysis-kia-motors/

https://www.google.com/search?q=kia%27s+value+chain+analysis&client=firefox-b-
d&sxsrf=ACYBGNT9w7PbneETwDNVUT4g1KyD7QDNhw:1580501108845&source=lnm
s&tbm=isch&sa=X&ved=2ahUKEwjvq6O50a7nAhXhmuYKHUExBOkQ_AUoAXoECAw
QAw&biw=1536&bih=750#imgrc=vct100y9CJ-NOM: