G.L.

Bajaj Institute of Management and Research

Approved by A.I.C.T.E., & Affiliated to Dr. A.P.J. Abdul Kalam Technical University (Formerly UPTU Lucknow)
Plot No. 2, Knowledge Park III, Greater Noida, Dist. G.B.Nagar, U.P., India Pin-201306

RESEARCH PROJECT REPORT

ON
Sales Promotion in Hyundai

FOR
THE PARTIAL FULLFILLMENT OF THE
REQUIREMENT FOR THE AWARD
OF
MASTER OF BUSINESS ADMINISTRATOR

Under the Guidance of: Submitted By:

Dr. Saroj Das Shakti Singh
1580

i
 ACKNOWLEDGEMENT

Any fruitful work is incomplete without a word of thanks to those involved

directly or indirectly in its completion. With my sincere gratitude I would

like to thanks everyone who has supported me in my project.

I would like to extend my sense of acknowledgement to Mr. Bhaskar for

their immense help & guidance that they have provided me during this

summer training. The present work has taken its Sharpe largely to their wise

counsels, concrete and constructive suggestion and sincere courtesy.

The help received from something without which the project would not have

been complete. Their insight as well as guidance helped me to understand

the essentials of the Project. I would like to thank them for their support.

I would also like to place on record my sense of gratitude to my parents and

friends for their support and encouragement, which has always guided me

my entire endeavored.

Shakti Singh

ii
iii
iv
 Abstract

Sales promotion is one of the four aspects of promotional mix. (The

other three parts of the promotional mix are advertising, personal

selling, and publicity/public relations.) Media and non-media

marketing communication are employed for a pre-determined, limited

time to increase consumer demand, stimulate market demand or

improve product availability

Many of the examples above are focused upon consumers. Don't

forget that promotions can be aimed at wholesales and distributors

as well. These are known as Trade Sales Promotions. Examples

here might include joint promotions between a manufacturer and a

distributor, sales promotion leaflets and other materials (such as

car), and incentives for distributor sales people and their retail

clients.

v
 TABLE OF CONTENT

1. Introduction

2. About Hyundai

3. Companys History

10

4. Vision & Mission

17

5. Research Objective

18

6. Sales Promotion

19

7. Promotion Mix

36

8. Company Profile

43

vi
9. Product Range

62

10. SWOT Analysis

67

11. Research Methodology

68

12. Data Collection

69

13. Research Process

70

14. Research Problem

71

15. Research Design

73

16. Analytical Tool Used

75

17. Sample Size

76

18. Analysis

77
vii
19. Limitation of the Survey

90

20. Conclusion

91

21. Suggestion & Recommendation

92

22. Questionnaire

93

23. Bibliography

99

Annexure

viii
Introduction

The Indian automotive component industry is dominated by around 500 players which
account for more than 85% of the production. The turnover of this industry has been
growing at a mammoth 28.05% per annum from 2002-03 onwards as illustrated in Fig
which clarifies its emergence

as one of India's fastest growing manufacturing sectors. During 1990s, the auto
components market in India used to be dominated by supplies to the aftermarket with
only 35% exports sourced by global Tier 1 OEMs (Original Equipment Manufacturers).
The industry made a sustained shift to the global Tier 1 market and today, the component
manufacturers supply 75% of their exports to global Tier 1 OEMs and the remaining to
the aftermarket. This is largely due to the growing capability of The Indian component
suppliers in understanding technical drawings, conversance with global automotive
standards, economically attractive costs (manufacturing costs are 25%-30% lower than its
western counterparts), flexibility in small batch production and growing information
technology application for design, development and simulation.

Besides The burgeoning demand of auto components from global majors, the domestic
automobile industry has been showing a sparkling growth caused by increasing customer
base and affordable loans. Based on this, the turnover of The Indian auto component
industry is expected to touch US$ 18.7 billion by 2009 and estimated to reach US$ 40
billion by 2014.

1
Overview of Indian Automobile Industry

The liberalized policies of The Indian Government paved towards steady evolution of
India as a stable and market driven economy with the real Gross Domestic Product
growth in excess of 8%, foreign exchange reserves crossing The $150 billion mark,
growing value of Indian Rupee compared to US dollar and reducing inflation rate. 100%
Foreign Direct Investment, absence of local content regulation, manufacturing and
imports free from licensing & approvals in The automobile sector coupled with customs
tarifforauto components reducing to 12.5% resulted in increased number of
multinationals establishing Their bases in India and with export markets looking up, The
Indian automobile industry is poised for a phenomenal growth. The automobile
production in the sub-continent has been growing steadily @ 18.53% per annum from
2002-03 onwards with total vehicle production standing at a mammoth 1,00,31,296 nos.
in 2005-06.

2
Among The automobiles, 2 wheelers account for 75.77%, cars about 11.09%, 3 wheelers
to the tune of 4.33%, tractors about 2.95%, buses & trucks constitute 2.19%, Multi Utility
Vehicles (MUVs) to The tune of 1.96% and Light Commercial Vehicles (LCVs) about
1.71% of The total number of automobiles produced in the country. Presently, India is the
second largest market after China for two & three wheelers.

In tractors production, India is one of the two largest manufacturers in the world along
with China. The subcontinent stands as the 4th largest producer of trucks in the world.
Coming to The passenger car segment, the country is positioned 11th in car production in
the world. The Indian passenger car market is far from being saturated leaving ample
opportunity for volume growth since the per capita car penetration per 1000 is only 7
compared to 500 in Germany. The production of cars in The country has been growing at
a mammoth 27.58% per annum from 2002- 03 onwards. In general, cars are broadly
classified as Mini, Compact, Mid-Size, Executive & Premium varieties. There has been a
steady rise in compact car production from 333,000 in 2002-03 to 715,000 in 2005- 06,
mid-size cars from 122,000 to 204,000 nos., executive cars from 2000 to 23,000 nos. and
premium variety cars from 4000 in 2002-03 to 5000 nos. in 2005-06. The mini car
segment production reduced from 150,000 in 2002-03 to 98,000 nos. in 2005-06. These
statistics vividly reveal the increasing capacity of The Indian customer, thus driving The
passenger car demand rapidly up The price ladder. Analysts speculate car production in
The sub-continent to touch 1575,000 in 2009 and 2654,000 by 2014. Cars and MUVs
exports rose from 72,000 in 2002-03 to reach 176,000 nos. in 2005-06 with growth @
48.155 per annum from 2002-03 onwards.

Out of The two wheelers produced in India, motorcycles account for 81.59%, scooters
about 13.42% and mopeds to the tune of 4.99% of the total production. The production
statistics which shows the growth of 2wheelers @ 16.58% per annum from 2002-03
onwards. Out of this, motorcycles have exhibited production growth @ 19.99% per
annum, scooters @ 6.74% per annum & mopeds @ 2.65% per annum from 2002-03
onwards. Two wheeler production units in India constitute of Japanese OEMS (Original
Equipment Manufacturers) which include Hero Honda Motors, Honda Motorcycle &

3
scooter India (P) Ltd., Yamaha Motor India (P) Ltd. & Suzuki Motorcycle India (P) Ltd.
and Indian OEMs consisting of Bajaj Auto Ltd. , T V S M o t o r Company Ltd., LML
Ltd., Kinetic Engineering Ltd., Majestic Auto Ltd., Kinetic Motor Company Ltd. and
Royal Enfield of Eicher Ltd.

Out of the aforementioned, Hero Honda accounts for 39.55%, Bajaj Auto about 26.87%,
TVS Motors 17.98%, Honda Motors 7.94%, Yamaha Motors 3.27%, LML 1.41% and
The remaining 2.98% of The total 2 wheelers production in The country. The exports of
two wheelers made a significant growth from a level of 180,000 in 2002-03 to reach
513,000 nos. in 2005-06. The latest estimates put up production of 2 wheelers to 13.6
million by 2009.

The production of Multi Utility Vehicles (MCVs) has been showing sparkling growth @
23.84% per annum, Light Commercial Vehicles (LCVs) @ 35.49% and Medium &
Heavy Commercial Vehicles (M & HCVs) @ 27.33% per annum from 2002-03 onwards
in India. Industry analysts put up MUVs production to reach 207,000 in 2009 and
277,000 in 2014. Commercial vehicle exports made a steady growth from a level of
11,000 in 2002- 03 to 41,000 in 2005-06. The manufacturing units for four wheelers in
India constitute of Japanese OEMs covering Maruti Udyog Ltd., Hyundai Motor (P) Ltd.,
Honda Siel cars India Ltd. & Swaraj Mazda Ltd., Indian OEMs consisting of Tata Motors
Ltd., Mahindra & Mahindra Ltd., Ashok Leyland Ltd., Force Motors Ltd., Eicher M o t o
r s L t d . & Hindustan Motors Ltd., Korean OEM Hyundai Motor India Ltd., American
OEMs which include General Motors India (P) Ltd. & Ford India (P) Ltd. and European
OEMs consisting of Skoda Auto India (P) Ltd., Daimler Chrysler India (P) Ltd., Volvo
India (P) Ltd., Tatra Trucks India Ltd. & Fiat India (P) Ltd. Presently, Maruti Udyog
accounted for 33.24%, Tata Motors 26.14%, Hyundia Motors15.13%, Mahindra &
Mahindra 7.47%, Ashok Leyland 3.78%, Hyundai 2.61%, Honda Siel Cars 2.40%, Force
Motors 2.08%, General Motors 1.78%, Ford India 1.57%, Eicher Motors 1.41% and
oThe4rs 2.39% of The total production of four wheelers in India.

4
The tractors production in the country has been making a steady growth @ 25.80% and
three wheelers @ 19% per annum from 2002-03 onwards. The Indian automobile
industry is flooded with huge investments involving green field and brown field projects.

Hyundai plans to set up a LCV plant at Pune, India. Hyundai would be investing US$ 4.2
billion for starting production of small cars & Suzuki plans to invest US$ 1.6 billion in
India.

Isuzu Motor & Nissan Motor belonging to Hitachi Ltd. Of Japan would begin
manufacturing cars in India.

Tata Motors is setting up its novel small car production facility near Kolkata. Hyundai
plans to make India an export base for small cars. Telecon is investing about US$ 54
million for production of earth moving vehicles/components at Kharagpur in India. Also,
Honda Motorcycles & scooters have ambitious plan for making this sub-continent a hub
for two wheelers exports. All These forward towards further increase in demand for auto
components.

Auto Components Production Range In India

India is bestowed with excellent infrastructure for production of auto components. There
are various national and multinational companies in the country that have put up state of
art auto component manufacturing facilities. The production range of auto components in
India. For many of the auto components, steel remains the dominant material due to its
versatility providing a wide range of properties through the choice of appropriate
combination of composition and processing.

Along with The above, long term availability of raw materials, good recycling ability, a
relatively favourable price and The large experience based knowledge favour steel as a
choice for use in auto component manufacturing.

5
The steel requirements in general for engine parts such as fan, pulley, piston pin & oil fan
are met by low carbon steels, medium carbon steels/alloy steels based on requisite
mechanical properties are applied for crankshafts, connecting rods, rocker arm shafts e t c
. While low carbon/low carbon alloy case hardening steels are u s e d f o r
moderately/severely stressed components. Transmission parts such as input shaft, output
shaft, front axle, rear axle, kick down & reverse bands, pinion shafts, clutch discs &
plates, automatic transmission components etc. are made with medium carbon/alloy steels
while The gears are made of low carbon/low carbon alloy case hardening steels.
Suspension and steering parts such as knuckle ball studs, arm sector shafts, arm parts,
pitman & idler arms, struts, tie rod ends, ball joint studs, center link etc. are either made
of medium carbon steel or alloy steel depending upon The conferred properties, spring
steels for suspension springs while low carbon case hardening steels are applied for
components that require wear resistance. Various low carbon/low carbon alloy steels are
used for rivets, bolts, nuts & other fastener items. Steel required for chassis components
are met with cold forming & wieldable low carbon/micro alloyed steel sheets/plates while
deep drawing & extra deep drawing varieties of steel sheets are employed for body.

Steels are shaped, formed, heat treated and/or machined into automotive components
fulfilling The specific design criteria requiring critical set of properties like strength &
toughness, fatigue & fracture resistance, wear resistance, corrosion resistance etc.
Technology of machining, fabricating or forming of engineering components has
undergone rapid changes with the advent of Computer

Aided Manufacturing systems and robotics. Consequently, the auto component

manufacturers require the highest degree of consistency in the quality of the steels both
metallurgical and dimensional. Also, the changes in customer expectations for lighter,
more powerful & fuel efficient vehicles with greater degrees of reliability & safety will
continuously drive The steel industry towards development and manufacturing of steel
with closer band of metallurgical properties, physical properties, leaner alloy
compositions, higher strength to weight ratio etc. at The most competitive prices.

6
Today, automobile sector accounts for 7% of the total steel consumed in India. The
sparkling growth of the automotive component industry and the automobile industry in
India translates into a tremendous potential and opportunity for domestic steel producers
to cater to the needs of these industries where steel is the most vital input.

India Emerging as Hub for Auto Components Indian auto component industry is fast
emerging as an attractive OEM & Tier 1 supplier. The auto component exports from India
rose from a mere US$ 0.760 billion in 2002-03 to US$ 1.8 billion in 2005-06 showing
growth @ 45.61% per annum from 2002-03 onwards. In 2005-06, about 36% of the
component exports headed for Europe, 26% for America, 16% for Asia, 10% to Africa,
10% to Middle East, 1.5% to Oceania and others account for 0.5% of the total exports.

Based on The sparkling growth in demand for auto components, global auto majors and
domestic giants have been investing heavily in India because of India's competitive
advantage. Accordingly, the total investment in Indian auto component industry has been
showing a tremendous growth @ 22.12% per annum from 2002-03 onwards. The
investment is expected to rise further with huge strides. Among various investments
pumping in India, auto parts maker Robert Bosch of Germany will investment US$ 201.4
million in its Indian subsidiaries over two years with bulk of investment in Motor
Industries Co. Ltd.(MICO). Hitachi Ltd. of Japan is planning to start auto component
manufacturing in India with its O E M s - I s u z u Motor & Nissan Motor to begin
manufacturing cars in India. GKN Driveline, a wing of UK based auto c o m p o n e n t
manufacturer GKN plans to open a new manufacturing facility in India. Dubai based auto
ancillary Parts International Company plans to invest about US$ 3.6 million in India over
three years which includes setting up a manufacturing facility to service exports to CIS &
SAARC countries. Fiat India has been taking various measures to become a global
sourcing hub for components by exporting components worth US$ 8.3 million last year to
its operations in South Africa and plans to source components worth US$ 200 million.
Hyundai already invested US$ 197 million to supply transmission system, gear boxes,
axles, propeller shafts and aluminium pressure die casting products to global operations.
Delphi is planning to source components such as piston rods, steering system, drive

7
shafts, catalytic converter, stampings in power train, sheet metal/stampings for chassis
and electrical parts like wiring harnesses & armature motors worth US$ 250 million by
2007. General Motors which presently is sourcing components worth US$ 6 million from
Indian suppliers intends to ship parts worth US$ 1 billion for its global production units
by 2010 and The components include crankshaft forgings, radiator caps, gear boxes, leaf
springs, wiring harnesses & cables. Ford Motors plan to source components like steering
columns, alloy wheels, crankshafts, exhaust parts, complete engines for IKON model,
radiators, springs, castings, forgings, leaf springs, body panel, horns, dash board
assembly, starters, alternators & door trims from The present level of US$ 150 million to
around US$ 600 million by 2009 from India. Visteon which had already invested US$ 56
million is sourcing components for exterior, instrument, cluster assembly & bumpers, AC
system, starters, motors, alternators and panel instrument assembly from India.

Along with this, over 20 OEMs have set up International Purchasing Offices (IPOs) in
India for components and the figure is expected to double by 2010.

Considering the above, Indian auto component manufacturers are substantially increasing
investments in production capacities, establishing partnerships in India & abroad and
have been investing in or acquiring companies overseas. In continuation with this, global
multi nationals are shifting automotive design centers into India with India evolving as an
excellent automotive R & D base for prototyping, testing, validating and production of
auto components caused by excellent IT skills & exemplary automotive domain
knowledge.

Conclusions

With increased role of outsourcing in an integrated global economy and India being
considered as a low cost automotive component producer possess a greater edge in the
global market aspiring to capture 10% share of the global market which translates into an
export target of US$20 billion by 2015. Also, by the current trends in the domestic
automotive industry, the indigenous demand for auto components is estimated to reach

8
US$20 billion in The next 10 years. This is expected to increase the demand for alloy
steels providing a great opportunity for alloy steel producers in the country to capitulate
on it.

ABOUT HYUNDAI MOTORS INDIA LIMITED

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 6
models of passenger cars across segments. The A2 segment includes the Santro,
i10 and the i20, the A3 segment includes the Accent and the Verna, the A5
segment includes the Sonata Transform.

HMILs 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 HMCs 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 110 countries across EU, Africa,
Middle East, Latin America, Asia and Australia. It has been the number one
exporter of passenger car of the country for the sixth year in a row.

9
To support its growth and expansion plans, HMIL currently has a 290 strong
dealer network and 580 strong service points across India, which will see further
expansion in 2010.

To support its growth and expansion plans, HMIL currently has a 290 strong
dealer network and 580 strong service points across India.

COMANYS HISTORY

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung
Chung established Hyundai Auto Service in Seoul, South Korea at The age of 31 years.
The name Hyundai was chosen for its meaning which in English translates to modern.
The Hyundai logo is symbolic of The Company's desire to expand. The oval shape
represents The Company's global expansion and the stylized "H" is symbolic of two
people (The Company and customer) shaking hands.

Hyundai Motor India Limited was formed in 6 May 1996 by The Hyundai Motor
Company of Korea. The first production plant was established in Irrungattukotai
near Chennai, India.

HMIL's first car, The Hyundai Santro was launched in 23 September 1998 and was a
runaway success. Within a few months of its inception HMIL became the second largest
automobile manufacturer and The largest automobile exporter in India.

Hyundai sells several models in India, The most popular being The Santro Xing, i10 and
The i20.OTheR models Include Getz Prime, Accent, Verna TRANSFORM, Tucson, and
The Sonata Transform.

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1.3 COMPANYS VISION

The companys motto is "Innovation for Customers". The companys vision is five core
strategies: global orientation, respect for human values, customer satisfaction, technology
innovation, and cultural creation. They have a desire to create an automobile culture of
putting customer first via developing humancentered and environmentfriendly
technological innovation.

The companys strives to create a more affluent lifestyle for humanity, and contribute to
the harmony and co-prosperity with shareholders, customers, employees and other
stakeholders in The automobile industry.

The spirit of creative challenge of the company has been a driving force in leading HMIL
to where it is today. It is the permanent key factor for HMIL to actively respond to change
in the companys the management system and seek creative and selfinnovative system.
The spirit of creative challenge, creates profits, The primary objective of a private
enterprise. Furthermore, the companys takes responsibility for The environment and
society and provide benefits to all stakeholders including shareholders, customers,
executives, employees, suppliers, and communities.

11
Corporate Philosophy

Management Philosophy

12
With the spirit of creative challenge, we will strive to create a more affluent lifestyle for
humanity, and contribute to the harmony and co-prosperity with shareholders, customers,
employees and other stakeholders in the automobile industry.

The spirit of creative challenge has been a driving force in leading HMC to where it is
today.
It is the permanent key factor for HMC to actively respond to change in the management
system and seek creative and selfinnovative system. With the spirit of creative
challenge, we create profits, the primary objective of a private enterprise. Furthermore,
we take responsibility for the environment and society we belong to, and offer sustainable
mobility in order to implement our corporate philosophy and provide benefits to all
stakeholders including shareholders, customers, executives, employees, suppliers, and
communities. Vision We announced "Innovation for Customers" as our midto long
term 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.

13
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

14
confidence from all stakeholders.

15
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.

Auto Sales 2016

MGF DEVELOPMENTS

16
The MGF Developments has been making a difference to Indian lifestyle and
development for over seven decades. Our longevity and success represents an unmatched
commitment to our customers, our business and our employees. From being the pioneers
in the Hire Purchase and Leasing business, the MGF Developments today is making a
difference in Real Estate Development and Automobiles Distribution ventures across
India.

ABOUT MGF

MGF Developments is a leading player in the field of retail real estate and property
development in India, and has brought in international standards in commercial
complexes and shopping malls. It was first in the sector to introduce the concept of
condominiums in the country. Today, it is one of the largest shopping mall developers in
the National Capital Region, with almost 3 million sq.ft. of retail space under
development. Some of MGF Developments landmark projects include the Metropolitan,
The Plaza and the City Square Mall in Gurgaon in 2003. It is an organization that in
many ways has been a model for a host of new companies entering the field.

MGF Hyundai is one of the leading names in Automobiles dealership of Hyundai. Motor
India Ltd located at 1, Jhandewalan, Faiz Road, New Delhi. The centralized location of
the showroom effectively covers whole of Delhi in North, East, West & South and
providing dedicated professional after sales service to our esteemed customers by having
service centers at G.T. Karnal Road, Patparganj, Mayapuri and Okhla.

MGF Mayapuri service station is also the training hub for all North Indian Hyundai
Service stations.
MGF Hyundai is having highly professional & motivated team, dedicated leaders
providing their prompt, efficient services to our customers with utmost priority being the
Quality of Service and Customer Satisfaction. Our longevity and success represent an
unmatched commitment to our esteemed customers, solid knowledge of the Indian

17
Market and to a certain extent our competitive advantage with our large customer
database, distribution network and customer services.

VISION AND MISSION

At a time when India was awakening to the call of freedom, MGF was taking a
revolutionary step that would help hasten the country's development. Today, the MGF
Developments portfolio spans the entire spectrum of small, medium and large-scale
equipment finance as well as big ticket leasing, vehicle financing, Automobiles
dealerships, factoring services, consumer finance, and infrastructural development. The
MGF Developments brings international expertise, cutting-edge technology and global
scale of operations to deliver 100 percent satisfaction to its customers, clients and
employees. The MGF Developments vision is to be recognized as:

The preferred provider of services and integrated solutions in all its areas of operation
A diverse team of talented professionals with expertise in selected segments
An employer of choice, fostering a culture that values Dedication, Respect and
Continuous Improvement

18
 THE RESEARCH OBJECTIVE

Based on the problem the objective of the research is divided into two which are

as follows:

Primary Objective:

To analyze brand loyalty of customers towards the companys products

range

Secondary Objective:

Analyze consumer satisfaction and sales promotion of Hyundai for

different cars.

Analyze the after sales service provided by company

19
 SALES PROMOTION

Sales promotion is one of the five aspects of the promotional mix.

(The other 4 parts of the promotional mix are advertising, personal

selling, direct marketing and publicity/public relations.) Media and

non-media marketing communication are employed for a pre-

determined, limited time to increase consumer demand, stimulate

market demand or improve product availability. Examples include

contests, coupons, freebies, loss leaders, point of purchase

displays, premiums, prizes, product samples, and rebates.

Sales promotions can be directed at either the customer, sales

staff, or distribution channel members (such as retailers). Sales

promotions targeted at the consumer are called consumer sales

promotions. Sales promotions targeted at retailers and wholesale

are called trade sales promotions. Some sale promotions,

particularly ones with unusual methods, are considered gimmicks

by many.

20
Sales promotion includes several communications activities that

attempt to provide added value or incentives to consumers,

wholesalers, retailers, or other organizational customers to

stimulate immediate sales. These efforts can attempt to stimulate

product interest, trial, or purchase. Examples of devices used in

sales promotion include coupons, samples, premiums, point-of-

purchase (POP) displays, contests, rebates, and sweepstakes.

Sales promotion is implemented to attract new customers, to hold

present customers, to counteract competition, and to take

advantage of opportunities that are revealed by market research. It

is made up of activities, both outside and inside activities, to

enhance company sales. Outside sales promotion activities

include advertising, publicity, public relations activities, and special

sales events. Inside sales promotion activities include window

displays, product and promotional material display and

promotional programs such as premium awards and contests.[1]

21
Sale promotions often come in the form of discounts. Discounts

impact the way consumers think and behave when shopping. The

type of savings and its location can affect the way consumers view

a product and affect their purchase decision.[2] The two most

common discounts are price discounts (on sale items) and bonus

packs (bulk items).[2] Price discounts are the reduction of an

original sale by a certain percentage while bonus packs are deals

in which the consumer receives more for the original price.[2]

Many companies present different forms of discounts in

advertisements, hoping to convince consumers to buy their

products.

Sales promotion is any initiative undertaken by an organisation to

promote an increase in sales, usage or trial of a product or service

(i.e. initiatives that are not covered by the other elements of the

marketing communications or promotions mix). Sales promotions

are varied. Often they are original and creative, and hence a

comprehensive list of all available techniques is virtually

22
impossible (since original sales promotions are launched daily!).

Here are some examples of popular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a

self-liquidating promotion. For example if a loaf of bread is priced

at $1, and cost 10 cents to manufacture, if you sell two for $1, you

are still in profit - especially if there is a corresponding increase in

sales. This is known as a PREMIUM sales promotion tactic.

(b) Customer Relationship Management (CRM) incentives such

as bonus points or money off coupons. There are many examples

of CRM, from banks to supermarkets.

(c) New media - Websites and mobile phones that support a sales

promotion. For example, in the United Kingdom, Nestle printed

individual codes on KIT-KAT packaging, whereby a consumer

would enter the code into a dynamic website to see if they had

won a prize. Consumers could also text codes via their mobile

phones to the same effect.

(d) Merchandising additions such as dump bins, point-of-sale

materials and product demonstrations.

23
(e) Free gifts e.g. Subway gave away a card with six spaces for

stickers with each sandwich purchase. Once the card was full the

consumer was given a free sandwich.

(f) Discounted prices e.g. Budget airline such as EasyJet and

Ryanair, e-mail their customers with the latest low-price deals

once new flights are released, or additional destinations are

announced.

(g) Joint promotions between brands owned by a company, or

with another company's brands. For example fast food restaurants

often run sales promotions where toys, relating to a specific movie

release, are given away with promoted meals.

(h) Free samples (aka. sampling) e.g. tasting of food and drink at

sampling points in supermarkets. For example Red Bull (a

caffeinated fizzy drink) was given away to potential consumers at

supermarkets, in high streets and at petrol stations (by a

promotions team).

(i) Vouchers and coupons, often seen in newspapers and

magazines, on packs.

24
(j) Competitions and prize draws, in newspapers, magazines, on

the TV and radio, on The Internet, and on packs.

(k) Cause-related and fair-trade products that raise money for

charities, and the less well off farmers and producers, are

becoming more popular.

(l) Finance deals - for example, 0% finance over 3 years on

selected vehicles.

Many of the examples above are focused upon consumers. Don't

forget that promotions can be aimed at wholesales and distributors

as well. These are known as Trade Sales Promotions. Examples

here might include joint promotions between a manufacturer and a

distributor, sales promotion leaflets and other materials (such as

car), and incentives for distributor sales people and their retail

clients.

25
Consumers Sales Promotion Types

Short term sales to achieve short term objectives

Price deal: A temporary reduction in the price, such as 50% off.

Loyal Reward Program: Consumers collect points, miles, or

credits for purchases and redeem them for rewards.

Cents-off deal: Offers a brand at a lower price. Price reduction

may be a percentage marked on the package.

Price-pack/Bonus packs deal: The packaging offers a consumer

a certain percentage more of the product for the same price (for

example, 25 percent extra). This is another type of deal in which

customers are offered more of the product for the same price.[2]

For example, a sales company may offer their consumers a bonus

pack in which they can receive two products for the price of one. In

these scenarios, this bonus pack is framed as a gain because

buyers believe that they are obtaining a free product.[2] The

purchase of a bonus pack, however, is not always beneficial for

the consumer. Sometimes consumers will end up spending money

26
on an item they would not normally buy had it not been in a bonus

pack. As a result, items bought in a bonus pack are often wasted

and is viewed as a loss for the consumer.

Coupons: coupons have become a standard mechanism for sales

promotions.

Loss leader: the price of a popular product is temporarily reduced

below cost in order to stimulate other profitable sales

Free-standing insert (FSI): A coupon booklet is inserted into the

local newspaper for delivery.

Checkout dispensers: On checkout the customer is given a

coupon based on products purchased.

Mobile couponing: Coupons are available on a mobile phone.

Consumers show the offer on a mobile phone to a salesperson for

redemption.

Online interactive promotion game: Consumers play an

interactive game associated with the promoted product.

27
Rebates: Consumers are offered money back if the receipt and

barcode are mailed to the producer.

Contests/sweepstakes/games: The consumer is automatically

entered into the event by purchasing the product.

Point-of-sale displays:-

Aisle interrupter: A sign that juts into the aisle from the shelf.

Dangler: A sign that sways when a consumer walks by it.

Dump bin: A bin full of products dumped inside.

Bidding portals: Getting prospects

Glorifier: A small stage that elevates a product above other

products.

Wobbler: A sign that jiggles.

Lipstick Board: A board on which messages are written in

crayon.

Necker: A coupon placed on the 'neck' of a bottle.

28
YES unit: "your extra salesperson" is a pull-out fact sheet.

Electroluminescent: Solar-powered, animated light in motion.

Kids eat free specials: Offers a discount on the total dining bill by

offering 1 free kids meal with each regular meal purchased.

Sampling: Consumers get one sample for free, after their trial and

then could decide whether to buy or not.

Online deals vs. In-store deals

There are different types of discounts available online versus in

the stores. On-shelf couponing: Coupons are present at the shelf

where the product is available. * On-line couponing: Coupons are

available online. Consumers print them out and take them to the

store.Although discounts can be found online and in stores, there

is a different thought process when shopping in each location. For

example, online shoppers are more price-sensitive because of the

readily available low search cost and direct price comparisons.[2]

Consumers can easily go to other websites and find better deals

as opposed to physically going to various stores.[2] In addition,

29
buyers tend to refrain from purchasing bonus packs online

because of the skepticism (of fraud and scams) that may come

with the deal.[2] Since bonus packs are more difficult than price

discounts to process online, they are more difficult and effortful for

the consumer to understand.[2] For example, a buy-one-get-one-

free deal on a website requires more work than the same bonus

pack offered in a store. Online, consumers have to deal with

payment processing, shipping and handling fees, and days waiting

for the products arrival, while in a store, the products are available

without those additional steps and delays.

30
 SALES PROMOTION

Marketing

Key concepts

Product / Pricing / Promotion

Distribution / Service / Retail

Brand management

Account-based marketing

Marketing ethics

Marketing effectiveness

Market research

Market segmentation

Marketing strategy

Marketing management

Market dominance
Promotional content

Advertising / Branding

Direct marketing / Personal Sales

Product placement / Public relations

Publicity / Sales promotion

31
 Sex in advertising / Underwriting
Promotional media

Printing / Publication / Broadcasting

Out-of-home / Internet marketing

Point of sale / Novelty items

Digital marketing / In-game

Word of mouth
This box: view talk edit

Sales promotion is one of the four aspects of promotional mix. (The

other three parts of the promotional mix are advertising, personal

selling, and publicity/public relations.) Media and non-media

marketing communication are employed for a pre-determined, limited

time to increase consumer demand, stimulate market demand or

improve product availability. Examples include:

contests

point of purchase displays

rebates

free travel, such as free flights

32
Sales promotions can be directed at either the customer, sales staff,

or distribution channel members (such as retailers). Sales promotions

targeted at the consumer are called consumer sales promotions.

Sales promotions targeted at retailers and wholesale are called trade

sales promotions. Some sale promotions, particularly ones with

unusual methods, are considered gimmick by many.

Consumer sales promotion techniques

Price deal: A temporary reduction in the price, such as happy

hour

Loyal Reward Program: Consumers collect points, miles, or

credits for purchases and redeem them for rewards. Two

famous examples are Pepsi Stuff and AAdvantage.

Cents-off deal: Offers a brand at a lower price. Price reduction

may be a percentage marked on the package.

Price-pack deal: The packaging offers a consumer a certain

percentage more of the product for the same price (for

example, 25 percent extra).

Coupons: coupons have become a standard mechanism for

sales promotions.

33
 Loss leader: the price of a popular product is temporarily

reduced in order to stimulate other profitable sales

Free-standing insert (FSI): A coupon booklet is inserted into the

local newspaper for delivery.

On-shelf couponing: Coupons are present at the shelf where

the product is available.

Checkout dispensers: On checkout the customer is given a

coupon based on products purchased.

On-line couponing: Coupons are available on line. Consumers

print them out and take them to the store.

Mobile couponing: Coupons are available on a mobile phone.

Consumers show the offer on a mobile phone to a salesperson

for redemption.

Online interactive promotion game: Consumers play an

interactive game associated with the promoted product. See an

example of the Interactive Internet Ad for tomato ketchup.

Rebates: Consumers are offered money back if the receipt and

barcode are mailed to the producer.

Contests/sweepstakes/games: The consumer is automatically

entered into the event by purchasing the product.

34
 Point-of-sale displays:-

o Aisle interrupter: A sign that juts into the aisle from the

shelf.

o Dangler: A sign that sways when a consumer walks by it.

o Dump bin: A bin full of products dumped inside.

o Glorifier: A small stage that elevates a product above

other products.

o Wobbler: A sign that jiggles.

o Lipstick Board: A board on which messages are written in

crayon.

o Necker: A coupon placed on the 'neck' of a bottle.

o YES unit: "your extra salesperson" is a pull-out fact sheet.

Trade sales promotion techniques

Trade allowances: short term incentive offered to induce a

retailer to stock up on a product.
Dealer loader: An incentive given to induce a retailer to
purchase and display a product.
Trade contest: A contest to reward retailers that sell the most
product.

35
 Point-of-purchase displays: Extra sales tools given to retailers
to boost sales.
Training programs: dealer employees are trained in selling the
product.
Push money: also known as "spiffs". An extra commission paid
to retail employees to push products.

Trade discounts (also called functional discounts): These are

payments to distribution channel members for performing some

function.

POLITICAL ISSUES

Sales promotions have traditionally been heavily regulated in many

advanced industrial nations, with the notable exception of the United

States. For example, the United Kingdom formerly operated under a

resale price maintenance regime in which manufacturers could legally

dictate the minimum resale price for virtually all goods; this practice

was abolished in 1964.

Most European countries also have controls on the scheduling and

permissible types of sales promotions, as they are regarded in those

countries as bordering upon unfair business practices. Germany is

36
notorious for having the most strict regulations. Famous examples

include the car wash that was barred from giving free car washes to

regular customers and a baker who could not give a free cloth bag to

customers who bought more than 10 rolls.

PROMOTIONAL MIX

In marketing, the promotional mix describes a blend of promotional

variables chosen by marketers to help a firm reach its goals. It has been

identified as a subset of the marketing mix. It is believed that there is an

optimal way of allocating budgets for the different elements within the

promotional mix to achieve best marketing results, and the challenge for

marketers is to find the right mix of them. Activities identified as

elements of the promotional mix vary, but typically include the

following:

Advertising is the paid presentation and promotion of ideas, goods, or

services by an identified sponsor in a mass medium. Examples include

print ads, radio, television, billboard, direct mail, brochures and catalogs,

37
 signs, in-store displays, posters, mobile apps, motion pictures, web

pages, banner ads, emails.

Personal selling is the process of helping and persuading one or more

prospects to purchase a good or service or to act on any idea through the

use of an oral presentation, often in a face-to-face manner or by

telephone. Examples include sales presentations, sales meetings, sales

training and incentive programs for intermediary salespeople, samples,

and telemarketing.

Sales Promotion is media and non-media marketing communication used for

a pre-determined limited time to increase consumer demand, stimulate

market demand or improve product availability. Examples include

coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-

liquidating premiums, trade shows, trade-ins, and exhibitions.

Public relations or publicity is information about a firm's products and

services carried by a third party in an indirect way. This includes free

publicity as well as paid efforts to stimulate discussion and interest. It

can be accomplished by planting a significant news story indirectly in

the media, or presenting it favorably through press releases or corporate

38
 anniversary parties. Examples include newspaper and magazine articles,

TVs and radio presentations, charitable contributions, speeches, issue

advertising, seminars.

Direct Marketing is a channel-agnostic form of advertising that allows

businesses and nonprofits to communicate directly to the customer, with

methods such as mobile messaging, email, interactive consumer

websites, online display ads, fliers, catalog distribution, promotional

letters, and outdoor advertising.

Corporate image campaigns have been considered as part of the promotional

mix

Sponsorship of an event or contest or race is a way to generate further

positive publicity.

Guerrilla marketing tactics are unconventional ways to bring attention to an

idea or product or service, such as by using graffiti, sticker bombing,

posting flyers, using flash mobs, doing viral marketing campaigns, or

other methods using the Internet in unexpected ways.

39
Product placement is paying a movie studio or television show to include a

product or service prominently in the show.

There are four main aspects of a promotional mix. These are:

1 Advertising- Any paid presentation and promotion of ideas, goods,

or services by an identified sponsor. Examples: Print ads, radio,

television, billboard, direct mail, brochures and catalogs, signs, in-

store displays, posters, motion pictures, Web pages, banner ads, and

emails.

2 Personal Selling - A process of helping and persuading one or

more prospects to purchase a good or service or to act on any idea

through the use of an oral presentation. Examples: Sales

presentations, sales meetings, sales training and incentive programs

for intermediary salespeople, samples, and telemarketing. Can be

face-to-face or via telephone.

3 Promotions- Incentives designed to stimulate the purchase or sale

of a product, usually in the short term. Examples: Coupons,

sweepstakes, contests, product samples, rebates, tie-ins, self-

liquidating premiums, trade shows, trade-ins, and exhibitions.

40
4 Public relations - Paid intimate stimulation of supply for a product,

service, or business unit by planting significant news about it or a

favorable presentation of it in the media. Examples: Newspaper and

magazine articles/reports, TVs and radio presentations, charitable

contributions, speeches, issue advertising, and seminars.

Direct Marketing is often listed as a the fifth part of the marketing mix

Sponsorship is sometimes added as a sixth aspect.

41
CATEGORY: SALES PROMOTION

Subcategories

This category has only the following subcategory.

[+] Customer loyalty programs (1)

"Sales promotion"

Bargain G P cont.

Buy one, get one free Grand opening Promotional item

C H R

Clip strip Happy hour Rebate (marketing)

Coupon Hoover free Running of the

flights promotion Brides

D

I S
Discounts and

allowances Institute of Sales Sample sale

42
 Doorbuster Promotion Serverbuster

Drug Coupon Specialty catalogs

L
Student Price Card
F
Ladies' night
V
Free sample
M
Visual

Magalog merchandising

Money back
W
guarantee

Wiki wiki dollar

P

Y
Pick 'n' mix

Young America
Point of sale
Corporation
display

Price markdown

43
 COMPANY PROFILE

Hyundai Motor Company

Public (KRX: 005380,

Type
LSE: HYUD)
Founded 1967
Founder(s) Chung Ju-Yung
Headquarters Seoul, South Korea
Area served International
Chung Mong-Koo,
Key people
Chairman and CEO
Industry Automobile manufacturer
Products Automobiles
Revenue US$ 74.3344 billion
Hyundai Kia Automotive
Parent
Group
Website Hyundai-Motor.com

The Hyundai Motor Company, a division of the Hyundai Kia

Automotive Group, is the worlds fifth largest automaker in terms of

units sold per year.[1] Headquartered in Seoul, South Korea, Hyundai

44
operates the worlds largest integrated automobile manufacturing

facility in Ulsan, which is capable of producing 1.6 million units

annually. The Hyundai logo, a slanted, stylized 'H', is said to be

symbolic of two people (the company and customer) shaking hands.

Hyundai means "modernity" in Korean.

History

Chung Ju-Yung founded the Hyundai Engineering and Construction

Company in 1947. Hyundai Motor Company was later established in

1967. The companys first model, the Cortina, was released in

cooperation with Ford Motor Company in 1968. In 1975, the Pony,

the first Korean car, was released, with styling by Giorgio Giugiaro of

ItalDesign and powertrain technology provided by Japans Mitsubishi

Motors. Exports began in the following year to Ecuador and soon

thereafter to the Benelux countries. In 1991, the company succeeded

in developing its first proprietary gasoline engine, the four-cylinder

Alpha, and transmission, thus paving the way for technological

independence.

45
In 1986, Hyundai began to sell cars in the United States, and the

Excel was nominated "Best Product #10" by Fortune magazine,

largely because of its affordability. The company began to produce

models with its own technology in 1988, beginning with the midsize

Sonata.

In 1996, Hyundai Motors India Limited was established with a

production plant in Irrungattukatoi near Chennai, India.[2]

In 1998, Hyundai began to overhaul its image in an attempt to

establish itself as a world-class brand. Chung Ju Yung transferred

[3]
leadership of Hyundai Motor to his son, Chung Mong Koo, in 1999.

Hyundais parent company, Hyundai Motor Group, invested heavily in

the quality, design, manufacturing, and long-term research of its

vehicles. It added a 10-year or 100,000-mile (160,000 km) warranty

to cars sold in the United States and launched an aggressive

marketing campaign.

In 2004, Hyundai was ranked second in "initial quality" in a

survey/study by J.D. Power and Associates. Hyundai is now one of

the top 100 most valuable brands worldwide. Since 2002, Hyundai

46
has also been one of the worldwide official sponsors of the FIFA

World Cup.

In 2006, the South Korean government initiated an investigation of

Chung Mong Koos practices as head of Hyundai, suspecting him of

corruption. On April 28, 2006, Chung was arrested, and charged for
[4]
embezzlement of 100 billion won (US$106 million), with Hyundai

Vice Chairman and CEO, Kim Dong-jin taking over as head of the

company.

47
Business

Assembly line at Hyundai Motor Companys car factory in Ulsan,

South Korea

Hyundai

In 1998, after a shake-up in the Korean auto industry caused by

overambitious expansion and the Asian financial crisis, Hyundai

acquired rival Kia Motors.

In 2000, the company established a strategic alliance with

DaimlerChrysler and severed its partnership with the Hyundai Group.

In 2001, the Daimler-Hyundai Truck Corporation was formed.

In 2004, however, DaimlerChrysler divested its interest in the

company by selling its 10.5 percent stake for $900 million.

48
Hyundai has invested in manufacturing plants in the North America,

China, Pakistan, India, and Turkey as well as research and

development centers in Europe, North America, and Japan.

In 2004, Hyundai Motor Company had $57.2 billion in sales in South

Korea making it the countrys second largest corporation, or chaebol.

Worldwide sales in 2005 reached 2,533,695 units, an 11 percent

increase over the previous year. Hyundai has set as its 2006 target

worldwide sales of 2.7 million units (excluding exports of CKD kits).

Hyundai motor vehicles are sold in 193 countries through some 5,000

dealerships and showrooms. After a recent survey of global

automotive sales by Automotive News, Hyundai is now the tenth

largest automaker in the world in 2007.

Hyundai Motor Companys brand power continues to rise as it was

ranked 72nd in the 2007 Best Global Brands by Interbrand and

BusinessWeek survey. Brand value estimated at $4.5 billion. Public

perception of the Hyundai brand has been transformed as a result of

dramatic improvements in the quality of Hyundai vehicles.

49
Hyundai in the United States

Hyundai Azera

Hyundai Genesis

Hyundai entered the United States market in 1986 with a single

model, the Hyundai Excel. The Excel was offered in a variety of trims

and body styles. That year, Hyundai set a record of selling the most

50
automobiles in its first year of business in the United States

compared to any other car brand (c. 126,000 vehicles).

Initially well received, the Excels faults soon became apparent; cost-

cutting measures caused reliability to suffer. With an increasingly

poor reputation for quality, Hyundai sales plummeted, and many

dealerships either earned their profits on repairs or abandoned the

product. At one point, Hyundai became the butt of many jokes (i.e.

Hyundai stands for "Hope you understand nothing's driveable and

inexpensive") and even made David Letterman's Top Ten Hilarious

Mischief Night Pranks To Play In Space: #8 - Paste a "Hyundai" logo

on the main control panel.

In response, the parent company of Hyundai began investing heavily

in the quality, design, manufacturing, and long-term research of its

vehicles. It added a 10-year or 100,000-mile (160,000 km) powertrain

warranty (known as the Hyundai challenge) to its vehicles sold in the

United States. By 2004, sales had dramatically increased, and the

reputation of Hyundai cars improved. In 2004, Hyundai tied with

Honda for initial brand quality in a survey/study from J.D. Power and

Associates, for having 102 problems per 100 vehicles. This made

51
Hyundai second in the industry, only behind Toyota, for initial vehicle

quality. The company continued this tradition by placing third overall

in J.D. Powers 2006 Initial Quality Survey, behind only Porsche and

Lexus.

Hyundai continues to invest heavily in its American operations as its

cars grow in popularity. In 1990, Hyundai established the Hyundai

Design Center in Fountain Valley, California. The center moved to a

new $30 million facility in Irvine, California in 2003, and was renamed

the Hyundai Kia Design and Technical Center. Besides the design

studio, the facility also housed Hyundai America Technical Center,

Inc. (HATCI, established in 1986), a subsidiary responsible for all

engineering activities in the U.S. for Hyundai. Hyundai America

Technical Center moved to its new 200,000-square-foot (19,000 m2),

$117 million headquarters in Superior Township, Michigan (near Ann

Arbor) in 2005. Later that same year, HATCI announced that it would

be expanding its technical operations in Michigan and hiring 600

additional engineers and other technical employees over a period of

five years. The center also has employees in California and Alabama.

52
Hyundai America Technical Center completed construction of its

Hyundai/Kia proving ground in California City, California in 2004. The

4,300-acre (17 km2) facility is located in the Mojave Desert and

features a 6.4-mile (10.3 km) oval track, a Vehicle Dynamics Area, a

vehicle-handling course inside the oval track, a paved hill road, and

several special surface roads. A 30,000-square-foot (2,800 m2)

complex featuring offices and indoor testing areas is located on the

premises as well. The facility was built at a cost of $50 million. An

aerial view can be found here.

Hyundai completed an assembly plant just outside Montgomery,

Alabama in 2004, with a grand opening on May 20, 2005, at a cost of

$1.1 billion. At full capacity, the plant will employ 2,000 workers.

Currently, the plant assembles the Hyundai Sonata and the Hyundai

Santa Fe. It is Hyundais second attempt at producing cars in North

America, as the Hyundai Auto Canada Inc. plant in Quebec closed

down in 1993.

In 2003, According to Consumer Reports, Hyundais reliability

rankings tied Hondas.

53
In 2005, Hyundai allowed Ed Voyles Hyundai in Smyrna, Georgia to

become the first "deaf friendly" dealership in the entire world. The

staff in this dealership are able to accommodate deaf customers with

the use of American Sign Language and video conferencing phones.

In 2006 JD Power and associates quality ranking, overall the Hyundai

brand ranked 3rd, just behind Porsche and Lexus, and beating long

time rival Toyota.[12] The brand overall is ranked much higher than the

average industry and resale value continues to improve; a

comparable 2003 Hyundai Sonata sedan ranks just $2200 below a

similarly equipped Honda Accord, according to Kelley Blue Book

Pricing 2006.

In 2006, Hyundais minivan Entourage earned a five-star safety

rating the highest honor the National Highway Traffic Safety

Administration bestows for all seating positions in frontal and side-

impact crashes. The Insurance Institute for Highway Safety also rates

Good its highest rating in front, side and rear impacts. The IIHS

(Insurance Institute for Highway Safety, United States), in fact, named

the 2006 Hyundai Entourage and Kia Sedona a Gold Top Safety
[13][14][15]
Pick, making the safest minivan ever tested.

54
In 2006, Hyundai was awarded 'Top-rated 2006 Ideal Vehicle' by Auto

pacific, marketing research and consultancy firm for the automobile

industry

In 2007 Strategic Vision Total Quality Awards, Hyundai Motors leads

the most vehicle segments in Strategic Visions Total Quality Index,

measuring the ownership experience. They attempt to measure more

than just the number of problems per vehicle. Hyundai tops in

Strategic Vision Total Quality Awards. For the first time ever, Hyundai

has risen to share the position of having the most models leading a

segment. Three models with the top Total Quality Index (TQI) score in

their segments, including the Hyundai Azera, Entourage, Santa Fe.

In 2007, Hyundais midsize SUV Santa Fe earns 2007 TOP SAFETY

PICK award by IIHS.

In 2007 at the New York International Auto Show, Hyundai unveiled

its V8 rear-drive luxury sedan called Concept Genesis to be slotted

above the Azera in the Hyundai line-up. This concept will make its

American debut in mid 2008.[21]

55
In 2007 at the Los Angeles International Auto Show, Hyundai unveiled

its second rear-drive concept car, this car, called Concept Genesis

Coupe, will be Hyundais first sports car due to make its debut in early

2009.

In 2008, Hyundai Santa Fe and Hyundai Elantra awarded 2008

Consumer Reports "top pick" which was among the top 10 vehicles

for 2008 unveiled in the magazine's issue. The magazine's annual

ratings, based on road tests and predicted safety and reliability are
[23]
considered highly influential among consumers. and Hyundai

Elantra earned Consumer Reports' 'excellent' rating in predicted

reliability. Hyundai Elantra is Consumer Reports top-ranked 2008

vehicle amongst 19 other compacts and small family cars. Beating

out such high-quality stalwarts as the Honda Civic, Toyota Corolla

and Toyota Prius.]

In 2008, at the North American International Auto Show, the

production version of the luxury & performance-oriented Hyundai

Genesis sedan made its debut, dealerships will have the Genesis as

soon as Summer 2008.

56
In 2008, at the New York International Auto Show, Hyundai debuted

its production version of the performance-oriented rear-drive Hyundai

Genesis Coupe, slated to hit dealerships in early 2009.

2009, Hyundai has announced the five-door hatchback variant of the

Elantra compact sedan will carry the name Elantra Touring when it

goes on sale in the spring as a 2009 model.[25]

US sales

Calendar Year Sales

2005 244,391

2006 346,235

2007 375,119

2008 400,221

2007 418,615

2008 455,012

2009 455,520

57
2010 467,009

2011 401,742

Electric vehicles

Hyundai plans to begin producing hybrid electric vehicles in 2009.

The Avante will be the first vehicle to be produced.

Since 2004, Hyundai has supplied about 3,000 hybrid versions of its

Getz and Accent small cars to government fleets as part of a testing

program. The automaker cites a lack of local tax benefits for

purchasing hybrids as a barrier to its hybrid development program.

[30]
But Hyundai expects the tax situation to change in 2009 .

The new hybrid electric Sonata will make its debut at the Los Angeles

International Auto Show in November 2008. Hyundai expects to

release it in the U.S. market in 2010, featuring lithium-ion battery

technology [31].

Environmental record

58
On April 23, 2008 Hyundai Motor announced the beginning of a five-

year project to turn 50 km of infertile land into grassland by 2012.

Hyundai is doing so with the help of the Korean Federation for

Environmental Movement (KFEM). The project, named Hyundai

Green Zone, is located 660 km north of Beijing. The goal of the

project is to end the recurring dust storms in Beijing, block

desertification and protect the local ecosystem. Local weeds will be

planted in the region that have the ability to endure sterile alkaline

soil. This is the first environmental project of the companys social

contribution program.

Hyundai Motor plans to aid Chevron Corporation in the construction

of up to six hydrogen fueling stations that will be located in California,

including locations at the University of California-Davis and the

Hyundai America Technical Center in Chino. Hyundai is going to

provide a collection of 32 Tucson fuel cell vehicles, which are

powered by UTC Fuel Cell power plants.

Motorsport

59
Alister McRae driving an Accent WRC at the 2001 Rally Finland.

Hyundai entered motorsport by competing in the F2 class of the

World Rally Championship in 1998 and 1999. In September 1999,

Hyundai unveiled the Accent WRC, a World Rally Car based on the

Hyundai Accent. The Hyundai World Rally Team debuted the car at

the 2000 Swedish Rally and achieved their first top-ten result at that

year's Rally Argentina, when Alister McRae and Kenneth Eriksson

finished seventh and eighth, respectively. Eriksson later drove the car

to fifth place in New Zealand and fourth in Australia. In 2001, Hyundai

debuted a new evolution of the Accent WRC, which was intended to

improve reliability, but the performance of the car was still not good

enough to challenge the four big teams (Ford, Mitsubishi, Peugeot

and Subaru). However, at the season-ending Rally GB, the team

achieved their best result with McRae finishing fourth and Eriksson

sixth.

60
For the 2002 season, Hyundai hired the four-time world champion

Juha Kankkunen, along with Freddy Loix and Armin Schwarz.

Kankkunen's fifth place in New Zealand was the team's best result,

but they managed to edge out koda and Mitsubishi by one point in

the battle for fourth place in the manufacturers' world championship.

In September 2003, after a season hampered by budget constraints,

Hyundai announced withdrawal from the WRC and a plan to return in

2006.

61
Electric propulsion

Hyundai plans begin producing hybrid electric vehicles in 2009. They

are going to use Hybrid Blue Drive, that includes lithium polymer

batteries, instead of lithium-ion [37] [38] [39].

[30]
The Avante will be the first vehicle to be produced. . Other are the

Santa Fe Hybrid, the Elantra, Sonata Hybrid (to the U.S. market in

2010) and the Hyundai i20 (this last, replaces the Getz) [37].

62
 PRODUCT RANGE

Accent
Atos/Santro
Azera
Dynasty
Elantra
Equus/Centennial (joint project of Hyundai and Mitsubishi)
Genesis
Genesis Coupe
Click/Getz
Grandeur (joint project of Hyundai and Mitsubishi)
Grandeur XG/XG300/XG350
Grandeur/Azera
Matrix/Lavita
Santamo (Rebadged Mitsubishi Chariot) (Originally produced
by Hyundai Precision Industry)
Sonata/i40
Tiburon/Coup/Tuscani
i30
i20
i10

63
SUVs and vans

Entourage (Similar to the Kia Sedona)

Galloper (Rebadged Mitsubishi Pajero) (Originally produced by

Hyundai Precision Industry)

Grace (1st generation was a rebadged Mitsubishi Delica)

H-1/Satellite/Starex/Libero/H-200

Hyundai H-1/iMax/i800

Hyundai H-100 Grace / Porter

HD1000 (Minibus/Porter)

Porter (1st generation was a rebadged Mitsubishi Delica)

Santa Fe

Starex

Terracan

Trajet

Tucson

Veracruz

64
Commercial vehicles

Ford D Series

Ford DK Series

Ford R Series

O303 Benz Bus

HM 1620 urban bus

HM 1630 suburban bus

Hyundai 4.5 to 5-ton truck (Rebadged Mitsubishi Fuso Fighter)

Hyundai 8 to 25-ton truck (Rebadged Mitsubishi Fuso Super

Great)

Aero (Rebadged Mitsubishi Fuso Aero Bus)

Aero City

Aero Town (e-Aero Town)

Hyundai DQ-7

Bison & 3ton Truck

Chorus

County (e-County)

e-Mighty

Hyundai FB

65
 HD160

HD170

Mega Truck

New Power Truck

Mighty (Rebadged Mitsubishi Fuso Canter)

Mighty II

Hyundai RB

Super Truck Medium

Super Truck

Trago

Universe

66
67
 SWOT ANALYSIS

STRENGTH WEAKNESS

Strong Brand Image. Very high price

Technically Superior. Major Competitors

Good after Sales services.

OPPORTUNITIES THREATS

Young generations need for more Strong competitors like Indigo

branded. CS, Swift Dezire
Strong advertising by competitors.
Brand image is necessary for
looking rich

Proper advertising for brand

building

68
 RESEARCH METHODOLOGY

Research methodology is the Procedure adopted for conducting the research

study. Research methodology should be carefully planned as the accuracy

reliability and adequacy of results is totally depending on the Research

Methodology followed. It gives the researcher a guideline by which he/she

can decide which techniques and procedures will be applicable to a given

problem. Moreover it helps in the evaluation of research by other also. So

for the research to be successful, purposeful and effective the researcher

should plan the Research Methodology before preceding the study.

The following aspect should be considered while designing a Research

Methodology.

69
 DATA COLLECTION

The task of data collection begins after a research problem has been defined

and research design has been chalked out while decided about the method of

data collection to be used for the study we must know that there are basically

two types of data Primary data and Secondary data.

In the present study only secondary data has been incorporated.

Secondary Data:

The secondary Data has been collected from

The data collected for the project undertaken gives the information about the

sales measures and practice applied for selling the goods. The data has been

allocated from various information channels like companys websites about

the products and offers & different strategies, business magazines, news

websites etc.

70
 RESEARCH PROCESS

AREA OF WORK

The report is the result of a survey which was undertaken in Mathura city.

The objectives of the project has been fulfilled by getting response from the

customer associated to these segments through a personal interview in the

form of a questionnaire. The responses available through the questionnaire

are used to evaluate the brand loyalty for the products of Hyundai and the

willingness of the customer to purchase its products on future.

The project also covers an analysis of the switch over of customers to

competitors products in the market.

The field work is conducted in the Mathura city in various show rooms

situated in different location all over the city. Some of them are in

IndraNagar, Aliganj, Chowk, Hussainganj and Alambagh.

71
 THE RESEARCH PROBLEM

The problem formulation is the first step to a successful

research process. The project undertake the problem of analyzing the

customer satisfaction level of the Hyundai and to find the marketing sales

promotion of the product in comparison to other products.

72
 THE RESEARCH OBJECTIVE

Based on the problem the objective of the research is divided into two

which are as follows:

Primary Objective:

To analyse brand loyalty of customers towards the companys products

range

Secondary Objective:

Analyse consumer satisfaction and sales promotion of Hyundai for

different cars.

Analyse the after sales service provided by company

73
 THE RESEARCH DESIGN

The research design used in the project is exploratory design.

The investigation is carried upon the customers in Mathura city. The reason

for choosing this design is to get responses from the customers so that their

perception about the products of the company and their loyalty could be

predicted.

74
 THE DATA SOURCE

The data has been taken from two sources

Primary data source

The primary data source has been collected through questionnaire by

Personally interviewing each respondent on a number of queries structured

in a questionnaire.

Secondary data source

Secondary data was collected from following sources

Prior research reports

Websites

Books

Newspaper

Personal consultation

75
 THE ANALYTICAL TOOLS USED

The analytical tools used are mostly graphical in nature which

include

Pie charts

Cylindrical charts

Column charts

Tables showing percentage

76
 THE SAMPLE SIZE

The sample size consists of 100 units out of which the most

logical and non biased response are selected thus the sample size is taken out

to be 100 units.

77
 ANALYSIS

Monthly No. of

Income respondent
30000-50000 62
51000-100000 24
above 100000 14

78
1. Information source about Hyundai ?

No. of
respondent
News paper 13
T.V ad 4
Trade show 18
Internet 2
Peer group 38
Personal approach by dealer 25

79
2. - Which language News paper and T.V channel do you prefer?

No. of

respondent
Hindi 38
English 52
Other 10

80
3. - Have you seen Hyundai Advertisement (print ad or T.V commercial)?

No. of

respondent
Print ad 74
T.V commercial 26

81
4. - Was that Advertisement effective?

No. of respondent
Yes 82
No 18

82
6. - What was the influencing power of advertisement?

No. of respondent
Discount 68
Brand ambassador 6
Free gifts 4
Mileage 22

83
84
7. - How many times do you see Hyundai and competitors advertisement?

No. of

respondent
Logan (monthly) 18
Hyundai (Weekly) 26
Swift desire (daily) 34
Indigo CS (weekly) 22

No. of respondent

22% 18%

26%
34%

Logan (monthly) Hyundai (Weekly)

Swift desire (daily) Indigo CS (weekly)

85
8. - Which car Advertisement is effective? Please rank 1 to 5 as below cars.

Rating Scale

No. of respondent
Hyundai 40
Swift desire 10
Logan 30
Indigo CS 20

No. of respondent

20%
40%

30%
10%

Hyundai Swift desire Logan Indigo CS

86
9. - What is the influencing power of the advertisement?

No. of respondent
Look 42
Technology 8
After sales service 34
Engine performance 16

87
10. - Which additional benefit attract you for Hyundai?

Benefits No. of respondent

Discount 34
Free accessories 4
Free gift 8
Extended warranty 6
Service 14
Offers 10
Test Drive 24

88
11. Which feature do you most like in Hyundai?

Attributes No. of
respondent
Looks 8
Interior 4
Comfort 12
Mileage 44
Safety 6
Boot Space 26

89
12. Which part of promotional activity do you most prefer to buy a car?
Please rank
Trade Show 2
Discount 6
Free gift 2
Safety feature 10
Mileage 8
Interior 4
Look 18
Special Package 2
Test driving 14
Engine performance 10
Seating arrangement 4
Over all feature 2
Technology 12
Brand Ambassador 2
Service part 6

90
91
13. Sales promotion activity for Hyundai (Free test drive)

Feed back from customer

No. of respondent
Fair 26
Good 38
Excellent 36

92
 LIMITATION OF THE SURVEY

Though, best efforts have been made to make the study fair, transparent and

error free. But there might be some inevitable and inherent limitations.

Though outright measure are undertaken to make the report most accurate.

The limitation of the survey is narrated below:

The project is valid for Mathura city only.

It was not possible to cover each and every showroom due to time

Constrains.

There may be some biased response form the respondents

Some respondents did not provide the full data.

Unwillingness on the part of the customers to disclose the information

as per the questionnaire.

The decisiveness on the part of the customers regarding some question

Hence, difficulty faced in recording and analyzing the data.

93
 CONCLUSION

This effort for the innovation in sales promotion of Hyundai car

will help the road shows, TV Advertisement, Mouth publicity etc.

And other thing is provide some offers like Discount, Diwali

offers, Free Gift like music system, Accessories etc.

My project is a key to open the door of greater comfort to the all

segment.

The customers of Hyundai are brand loyal with only a small

percent want to shift over to other brands. Trying of other brands

by customers is mainly because the customer wants to try

something new.

The performance of Hyundai good in comparison to other brands.

After sales service is the basic feature influencing brand loyalty.

94
 SUGGESTION AND RECOMMENDATION

After this study some points emerge which should be

implemented by the media for enhanced the impact of

advertisement for sales promotion.

1. Advertisement should be given more space news paper.
2. Advertisement should be published in colored forms

more now days it is too much effective for sales

promotion.
3. Sales promotion is effective through advertisement.

95
 QUESTIONNAIRE

Name

Address of the customer

Occupation

Other Vehicle Owned

Age

Annual Income

1. - How you become interested about Hyundai?

(1) Newspaper (2) T.V ad (3) Trade show

(4) Internet \

(5) Peer group (6) Personal approach by dealer

2. - Which language News paper and T.V channel do you prefer?

(1) Hindi (2) English (3) Other

96
3. - Have you seen Hyundai Advertisement (print ad or T.V commercial)?

Yes No

Print ad

T.V commercial

4. - Was that Advertisement effective?

(1) Yes (2) No

6. - What was the influencing power of advertisement?

7. - How many times do you see Hyundai and competitors advertisement at

T.V and in News paper?

(1) Daily (2) Weekly (3) Monthly (4) Hardly

Hyundai

Newspaper

TV

97
_____________________________________________________________________

Icon Ford News paper

T.V ad

________________________________________________________________________

Swift desire News paper

T.V ad

________________________________________________________________________

Indigo CS News paper

T.V ad

8. - Which car Advertisement is effective? Please rank 1 to 5 as below cars.

Rating Scale- 1 2 3 4 5

Poor So So Fair Good Excellent

(1) Icon Ford

(2) Maruti

(3) Logan

(4) Indigo CS

98
9. - What is the influencing power of the advertisement?

10. - Which additional benefit are you getting with Hyundai, Swift Desire,

Indigo CS and Icon Ford?

Benefits Cars- Hyundai Indigo Icon Ford Swift

CS Desire

Discount

Free accessories

Free gift

Extended warranty

Registration

Offers
Test Drive

11. Which feature do you most like in Hyundai?

Attributes Rating scale 1 2 3 4 5

(1) Looks
(2) Interior
(3) Comfort
(4) Mileage
(5) Safety
(6) Boot Space

99
12. Which part of promotion activity do you most prefer to buy a car? Please rank 1 to 15

(1) Trade Show (10) Engine performance

(2) Discount (11) Seating arrangement
(3) Free gift (12) Over all feature
(4) Safety feature (13) Technology
(5) Mileage (14) Brand Ambassador
(6) Interior (15) Service part
(7) Look
(8) Special Package
(9) Test driving

100
 BIBLIOGRAPHY

Books & Generals

Kothari, C.R., (2004), Research Methodology Methods And Techniques,

Delhi, New Age International (I) Ltd., Publishers, Pg 1 & 65.

Krishnamacharyulu, C. S. G. & Lalitha Ramakrishna, (2002), Rural

Marketing, Delhi, Pearso n Education (Singapore) Pte. Ltd., Indian Branch,

482 F.I.E. Patparganj, India, Pp 93-114.

Ravindranath. V. Badi & Narayansa. V. Badi, (2004), Mumb ai, Himalaya

Publishing House, Pp. 78-96.

Tull Donald, S. & Hawkins, Del I. (2005), Marketing Research

Measurement & Methods, New Delhi, Prentice-Hall Of India Pvt. Ltd., Pg

530-552

India today

Business standard

4ps of marketing ( vol. no.3 feb.2010)

101
Web sites

www.hyundai.com

www.altavista.com

www.google.com

102