Assignment 2 should be done by the data provided in assignment 1 which is attach

Marketing Plan

Hyundai Motors

Marketing Management, BUMKT5902

Submitted by: Mausam Ghimire-30323108

Submitted to: Chriendra Keerthipala

30th December 2016

Executive Summary

This report has been written as a part of our marketing assignment in which we have to do the situational analysis of the chosen company. For the purpose of this assignment, I have chosen Hyundai Motors because it is one of the leading automobile industries in the world.

The report includes a detailed situational analysis of Hyundai Motors and also includes industry, marketing, competitor, customer, operating, financial and also the product analysis.

In the compilation of this report, I have collected the data from various other sources that includes articles, journals, data from various websites, details of which are given in the referencing section.

After reading the report, the reader would have an idea and a general understanding of the environment where Hyundai motors operates. Moreover, their financial performance over the years, their SWOT and TOWS analysis would also be discussed which enables the reader to understand that what should be followed by Hyundai motors in order to maintain their position in the highly competitive market.

1. Introduction……………………………………………………………………………………………………………………..4

2. Situational Analysis………………………………………………………………………………………………………….4-11

   1. External Analysis…………………………………………………………………………………………………………...4-9

   2. Industry Analysis…………………………………………………………………………………………………….….10-11

   3. SWOT/TOWS………………………………………………………………………………………………………………11-12

3.0. References……………………………………………………………………………………………………………………13

1. Introduction

Firstly, marketing is all about knowing and identifying the customer needs and wants & then developing the product according to the needs of the customers. A company requires a marketing plan to follow its strategies and in order to capture the company’s current target market, although situational analysis also helps the company to identity their position in the current market. Not only this but also, situational analysis helps to identify the organizational internal and external environment, its capabilities, business environment and its customers altogether.

Coming towards the introduction of Hyundai Motors, the company was formed in 1967 in Seoul, Korea with a purpose and a vision to become the fastest growing automobile company in the world. The Headquarters of Hyundai Motors is located in Seoul. Currently Hyundai motors have more than 68,000 employees all around the world and it ranks at the 5th position in the automobile companies in the world.

Hyundai Motors came to Australia in the year 1986 and later in 2003; it got stabilized as a sedately owned subsidiary of Korean parent company named as Hyundai Motor Company Australia. (HMCA). Even after three decades, Hyundai has been serving to the Australian market and known as the fasted growing automotive company in Australia. (Hyundai Motor Company Australia 2016)

1. Situational analysis

   1. External Analysis

Hyundai motors are working and operating in a very stable economic growth in the business and also availing the environmental opportunities. The company’s situational analysis is as follows:

1. 1. 1. Industry Analysis

Hyundai motors are globally renowned and have its brand name and reputation in more then 180 countries in the world. Today Hyundai motors have its own seven plants that are operating overseas in different countries. Currently the company has an internal capacity to produce more than 3.91 Million units annually.

Porters Five Forces Model for Hyundai Motors

Porters five forces model is very famous and it comprises of 5 different powers and it takes into consideration that these five forces are significant to identify the company’s competitive power in its business environment. The Porter’s model is also very useful and important tool that can be used for the situational analysis of the company. At this point, Porter’s five forces model would enable to determine the current competitive power and position of Hyundai Motors.

1. Barriers to Entry

The automotive industry is very concentrated and it is a difficult task to enter in such a competitive and saturated market. Beginners would need a huge amount of capital and also other possible resources to establish their company or brand. Furthermore, new entrants would require a stable and powerful distribution and logistics network. Hyundai motors are a very well-known and an established brand and it come easily become a barrier for any of the new entrant.

1. Bargaining power of Buyer

The bargaining power of buyer in an automotive industry is high because there are a number of options available to the people to choose other automotive companies which provides and offers the same kind of cars in more or less prices as Hyundai does. If the buyer is not satisfied with the price or comfort of the car, he can easily switch to any other company.

1. Bargaining Power of Supplier

The bargaining power of Supplier in an automotive company is low because the companies can easily switch to other suppliers if one fails to satisfy them. Similarly Hyundai motors can easily switch to other suppliers if their supplier does not provide them enough satisfaction.

1. Threat of substitute

As far as Hyundai motors is concerned, the threat of substitute is not as much high as other companies because the demand and the level of satisfaction shows that the threat of substitute is not as high as compare to other companies but on the other hand, public transport is always a threat to private cars.

1. Rivalry Amongst Competitors

The competition in the automotive industry is quite high because the customers’ needs and demands always keep changing and hence the competition always becomes more intense. This can form a threat to Hyundai Motors because they always have to form, create, innovate new car designs in order to attract and capture more customers.

1. 1. 1. Market Analysis

         1. Market Structure

The market for Hyundai motors is expanding and growing with a phenomenal rate not only in Australia but also globally. The market analysis of Hyundai motors in terms of their growth is as follows: (Hyundai Website, 2016)

The sale of Hyundai vehicles has been increasing over a period of time and each year it has been growing. Specifically in Australia, as mentioned above, the sales for the passenger cars has been increased to 68.9% in the year 2015 (in no of units) whereas, the commercial vehicle such as buses, trucks and other heavy vehicles sales has also been increased to 10.2% in the year 2015. Coming towards the overseas market, the exports has been increased by 10.5% and through the overseas plant of Hyundai motors, a growth of 19.6% has been recorded in the year 2015.

1. 1. 1. Competitor Analysis

Hyundai motors faces very strong and robust competition with other reputed and leading companies globally such as Toyota, General Motors, Ford, Nissan, Volkswagen, BMW etc.

A graphical representation of the competitors of Hyundai Motors is as follows: (Global Market share of largest automobile companies, 2016)

As the pie diagram shows that automotive industry has been leading by Toyota motors having a global market share of 11.6% which is followed by Volkswagen which have a market share of 11% followed by General motors with 8.2% of market share globally. The fifth position has been secured by Hyundai motors with a share of 5.3% globally. Hyundai motors has a long term growth strategies that are coming in the near future which would help the company to grasp more market share in the international automotive market.

1. 1. 1. Customer analysis

Hyundai motors usually offers their cars and their target market starts from middle class to upper middle class. Hyundai offers its cars to those who need a car with comfort, style, safety etc. with a reasonable and affordable price. The company is no thinking to target the upper class customers by offering more luxurious and more expensive cars.

Customer Analysis –Automotive Market

1. 1. 1. Macro Environmental Factors

         1. Political

Every year, Hyundai motors export thousands of no of units of their vehicles around the world. The Government policies and taxation rules in different countries on import and export of vehicles might affect Hyundai.

1. 1. 1. 1. Socio-cultural

Hyundai motors are based in Korea and hence they follow the Korean methodology of doing the business. Hyundai motors follow the Korean family business system in order to survive in the competitive market.

1. 1. 1. 1. Economic

The car industry is one of the significant contributors in the world’s economy. The fluctuation in fuel prices globally is a considerable factor that can influence the sales of cars. Hyundai motors planned to manufacture the electric cars & they started the production of their hybrid card in the year 1995. The company then afterwards, produced the mass quantity of hybrid cars and produced almost 3,000,000 cars in the year 2015 (Hyundai Motors, 2013).

1. 1. 1. 1. Technological

As far as the technology is concerned, Hyundai motors are always searching something new and innovative to meet the customer needs. As the technology is changing day by day so does the R&D network of Hyundai motors is also growing faster.

1. 1. 1. 1. Environmental

Hyundai motors are now environmental friendly and they produce eco-friendly cars keeping in mind the concept of sustainability. Moreover, Hyundai motors have even proved to be environmental friendly by producing fuel efficient, Hybrid and electric vehicles. (Hyundai Environmental Policy)

1. 1. Internal Analysis

      1. Operational Analysis

For any company, Operations is the most integral part for any manufacturing company, particularly for the company who is the car business where it is a mandatory requirement to perform every operation in a timely manner and Hyundai motors is really good at it because the company has seven differently located manufacturing plants and also has R&D centres all over the world. Hyundai motors are known as very credible because of their accurate, effective and efficient operations. Right from assembling the parts till the final product and delivering it to the consumer is definitely a state of art for Hyundai motors.

1. 1. 1. Financial analysis

The financial analysis and the financial summary of Hyundai motors is as follows:

The key ratios of Hyundai motors shows a strong and stable position of the company in the competitive market of automotive as far as the financial aspect is concerned. But as compare to the year 2014, in 2015 the company’s performance has little weaken up as its ROI is dropped to 10.72 from 13.41, whereas, its current ratio has also been decreased with a slight difference. Moreover, the company has taken more debt in 2015 and its profit margin has also been decreased to 6.98 from 8.23. Although such financials still show a strong and a positive position of the company but the company needs to increase its overall profitability and try to pay off its debt in the near future.

1. 1. 1. Product Analysis

         1. Current Product

Hyundai motors produces a large of vehicles and it offers variety of cars to people of all ages. They offer SUV’s to passenger and family cars to even the large commercial vehicles. The fundamental reason is to provide the customers comfortable yet fuel efficient cars. The price of the vehicles ranges from AUD 14,990 to AUD 50,000 for their commercial and other luxurious vehicles.

1. 1. 1. 1. Target Market

The target market for Hyundai motors starts from the middle class to the upper middle class because it has variety of vehicles available that meets the demand of every customer. All of Hyundai’s passenger cars have different price range according to the type and features which can be afforded by the middle class to the elite class. But altogether, Hyundai motor vehicles are for those who want comfort, luxurious, speed, fuel efficiency and quality under one roof.

1. 1. SWOT/TOWS

      1. SWOT analysis

1. 1. 1. TOWS Analysis

1. References

About Hyundai Motor Company Retrieved from http://www.hmmausa.com/our-company/about-hmma/hmc-fact-sheet/

Global market share of the world's largest automobile companies. (n.d.). Retrieved from Statista: http://www.statista.com/statistics/316786/global-market-share-of-the-leading-automakers/

Global Networks. Retrieved from Worldwide Hyundai: http://worldwide.hyundai.com/WW/Corporate/Network/GlobalNetworks/index.html

HMMA Enviornmental policy. Retrieved from http://www.hmmausa.com/our-company/hmma-environmental-policy/

Hyundai. Retrieved from http://www.hyundai.com.au/hyundai-info

Hyundai Motor Co Financials. Retrieved from Morningstar: http://financials.morningstar.com/ratios/r.html?t=HYUO&region=gbr&culture=en-US

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