Project describes the marketing campaigns which were launched by hyundai for Hyundai i20 and also includes the analysis of i20 compared to other cars in same segment. It also contains the recommendations for improving the performance of i20 in market.

1. Page 1 of 10
SERIAL
No. TOPIC PAGE
No.
1. ABOUT THE COMPANY 2.
2. MARKET SHARE 2.
3. GROWTH & DECLINE 3-5.
4. MARKET TRENDS 5.
5. SWOT ANALYSIS 6-7.
6. CONSUMER BEHAVIOUR ANALYSIS 7-8.
7. PRESENT MARKETING STRATEGIES 8-9.
8. PROPOSED MARKETING STRATEGIES 9.
9. OUR PROPOSALS FOR INCREASING MARKET
SHARE
9.
10. REFERENCES 10.
CONTENTS

2. Page 2 of 10
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC). Established in 1996.HMIL is the largest passenger car exporter and the
second largest car manufacturer in India. It currently markets nine car models across segments -
in the A2 segment it has the Eon, Santro, i10 and the i20, in the A3 segment the Accent and the
Verna, in the A4 segment the Elantra, in the A5 segment Sonata and in the SUV segment the
Santa Fe.
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 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.
In overall passenger vehicle market:
In the overall passenger vehicle market, Hyundai had a share of 14.27% in FY13.
In compact small car market:
The compact small car segment constituted 52% of the overall passenger vehicle market in the
country with sales of 1.41 million cars in FY13. Hyundai is on the 2nd
position in the market with
22% share.
1.ABOUT THE COMPANY
2. MARKET SHARE

3. Page 3 of 10
In overall passenger vehicle market
In the first quarter ended June, it increased its market share to 15.67%.
Incompact small car market:
Hyundai managed to increase its market share to 25% and it expects the new cars to push this up
in the coming months.
a) PREMIUM HATCHBACKS GROWTH & DECLINE
India has a large proportion of first-time car buyers that are withering away due to the grim economic
conditions. Premium hatchbacks are additional cars in the family and the segment has taken a hit as
potential customers are postponing new purchases.
FROM 2012-13
Sales fell in 2012-13 by 7%, the highest in any fiscal over the past decade, demand has grown for entry-
level cars at the expense of the more aspirational models.
MANUFACTURER MODEL JUN'13 JUNE'12
GROWTH%(12-
13)
HYUNDAI i20 5628 7676 -26.681%
HONDA BRIO 2375 609 289.984%
MARUTI SUZUKI SWIFT 17236 15682 9.909%
VOLKSWAGEN POLO 3200 2418 32.341%
SKODA FABIA 132 594 -77.778%
TOYOTA LIVA 1951 2096 -6.918%
NISSAN MICRA 1989 1091 82.310%
3. GROWTH & DECLINE

4. Page 4 of 10
FIRST QUARTER FY13 & FY14
In the April-July period for FY14, the sales in the premium hatchback segment declined to
241,311 units to 270,329 units, a decline of 10-7% year-on-year.
Sales of premium hatchbacks slipped to 38,640 a month on average in first quarter of FY13
compared with 44,730 units in the year-ago period, a trend that reflects the broader market where
sales have continued to decline for the past seven months in a row.
Premium hatchback cars have failed to override the sluggish market conditions, with cumulative
sales in the once fastest-growing segment declining 14% in the first quarter of this year as buyers
switched to the cheaper entry-level models.
b) Hyundai i20 growth in market share
The i20 has been a strong performer with diesel and petrol power train. Its Uber life positioning
with sporty styling, premium features helped to differentiate to create a premium compact
segment and increase its market share in the compact segment.
The Hyundai i20, gained about 5.3% share in the segment during the first quarter of the year
2013 as the company pushed the petrol variant amid rising diesel prices and continued to refresh
-26.681%
289.984%
9.909%
32.341%
-77.778%
-6.918% 82.310%
Sales growth in the FY 2012-13
HYUNDAI
HONDA
MARUTI SUZUKI
VOLKSWAGEN
SKODA
TOYOTA
NISSAN

5. Page 5 of 10
the model.Hyundai's i20, which posted an impressive gain of 19% in sales, all other hatchback models
hit the reverse gear.
India has a large proportion of first-time car buyers that are withering away due to the grim
economic conditions. Premium hatchbacks are additional cars in the family and the segment has
taken a hit as potential customers are postponing new purchases.
The passenger vehicle market size has dropped from 2.42 lakh units per month in January 2013
to 1.86 lakh units per month in July 2013.
From the past couple of years, it has been observed that most of the car manufacturers have
adopted a skeptical view in launching a new car in the luxury hatchback segment and most of the
cars are being launched in the hatchback segment.
Cars manufacturers are providing diesel variants for their current cars and new cars due to
increase in petrol prices. Many cars are being launched with ecofriendly and pocket friendly fuel
variants.
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
19%
-7% -6% -5%
-20%
-28%
-62%
sales change in first quarter for the
period 2012-13
sales change in first
quarter for the period
2012-13
HONDABRIO
MARUTISUZUKISWIFT
VOLSWAGENPOLO
SKODAFABIA
TOYOTALIVA
NISSAN
MICRA
Hyundaii20
4. MARKET TRENDS

6. Page 6 of 10
Strengths
 The Quality Advantage: Hyundai owners experience fewer problems with their vehicles
than any other car manufacturer in India. Hyundai i20 gives features as provided by
luxurious cars.
 A Buying Experience Like No Other: Hyundai has a sales network of 250 state-of-the-art
showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to
guide the customers in finding the right car.
Weaknesses
 Commodity Price Risks: Hyundai commodity price risks to higher costs due to changes
in prices of inputs such as steel, aluminum, plastics and rubber, which go into the
production of automobiles. In order to mitigate these risks, the company continues to
attempts to enter into long term contracts based on its projections of prices. They also
help minimize the impact of growing input prices.
 Exchange Rate Risk: The Company is exposed to the risks associated with fluctuations in
foreign exchange rates mainly of import of components & raw materials and export of
vehicles. The company has a well-structured exchange risk management policy. The
company manages the exchange risk by using appropriate hedge instruments depending
on the prevailing market conditions and the view on the currency.
Opportunities
Hyundai i20’s target is a demographic bracket below 35 years of age but there liessw potential to
expand its target base as there is a lot of appeal for older audience.
Limited completion in the segment could lead to Hyundai acquiring a grip on the market share
with introduction of variants that appeal to a wide variety of proposed customers.
5. SWOT ANALYSIS

7. Page 7 of 10
Threats
•Risk Factors: In the course of its business, Hyundai is exposed to a variety of market and other
risks including the effects of demand dynamics, commodity prices, currency exchange rates,
interest rates, as well as risk associated with financial issues, hazard events and specific assets
risk. Whenever possible, the instrument of insurance is used to mitigate the risk.
•Business Risks: The automotive industry is very capital intensive. Such investments require a
certain scale of operation to generate viable returns. These scales depend on demand.
The above graph suggest that majority of the respondent would like to buy a hatchback.
This shows that now people are preferring hatchback over other segments of car.
The above graph show that if provided a budget constraint of 6-7 Lacs, majority of the
respondents would like to buy Hyundai i20. This suggests that in this price range, Hyundai i20 is
the best considered option. However, we can see that it face competition from Maruti Suzuki
Swift and Volkswagen Polo. Hence according to the above graph and charts, Hyundai i20 enjoys
6. CONSUMER BEHAVIOUR ANALYSIS
In which of the following
segments, would you
buy a car?
If you want to buy a
car, provide your
budget is Rs 6-7 lacs,
which car would you
buy?

8. Page 8 of 10
a dominant position in Hatchback car market where prices are from 6-7 lacs but is facing
competition from Maruti Suzuki Swift and Volkswagen Polo.
The above graph and table represent the ratings that Hyundai i20 got on various
parameters from the respondents. They show the percentage of people who give higher
ratings to each of the mentioned parameter. It is evident that maximum people gave
Comfortability and Looks/Design higher ratings. Also, Mileage got the lowest rating.
Through this, we can say that Hyundai i20 is a success in terms of comfortability and
Looks/Design. However, it needs to work on its mileage to satisfy its customer and
hence, to capture better market in future.
 Viral campaign ‘Casts a Spell’ Crosses over 1 Million Viewers
 Advantage department- Exchange offers : Customers can exchange their cars of any
brand, with our brand new i20 with some discount based on the resale price of their old
car as per analyzed by analyst.
This will increase market share as other brand users will shift to Hyundai.
56
58
60
62
64
66
68
70
72
74
76
Rate Hyundai
i20 on the basis
of following
characteristics.
7. PRESENT MARKETING STRATEGIES

9. Page 9 of 10
 Occasional Discounts : special discount on Diwali ,other festivals and occasions
 Goodies and Accessories: giving free goods and accessories with cars
 Event marketing
Featuring our product through movies and TV serials. Organizing events in malls and
shopping centers. Tie up with reality shows and offering i20 as prize.
 Flexible EMI Scheme
Variant finance schemes so that people from all income groups can buy our product
without thinking much about the cost. Attractive 0% interest offers. Tie ups with
financial institutions.
 Strategic alliance with oil and Gas companies
Special facilities and attention ould be given to Hyundai user on particular Oil company
outlets.
 Mobile and online services
Consumers can request for free pick and drop service.
They can check at which stage their car is being services at that very moment of time.
 Product proposals: Introducing CNG
In today’s market scenario, customer has less buying power, increasing petrol and diesel
prices forces customer not to become consumer of Car.Moreover, people want to have
status edge over others while paying less out of their pockets.
In these conditions, HYUNDAI i20 can give the option of CNG in its petrol cars.
Customers can customize their car booking and select whether they want CNG in their
petrol car or not.
 Special discounts for first time car buyers.
8. OUR PROPOSALS FOR INCREASING MARKET SHARE
7. PROPOPSED MARKETING STRATEGIES

10. Page 10 of 10
 www.Gaadi.com
 Hyundai Motor India Limited annual reports
 www.hyundai.com
 www.economictimes.com
 www.livemint.com
 www.motoring.com.au
 www.bizcommunity.com
9. REFERENCES