Hyundai Veloster Marketing Plan essay
Ruskin-Brown (1999, p.24) claims that the major purpose of marketing plan is the coordination of team efforts, organization of all resources, including finance, defining of time and place of the marketing efforts appliance. These overall combined efforts should lead to the desired result for the company-manufacturer.
The present marketing plan is constructed for marketing for a Hyundai Veloster which is a compact sport car model that will be introduced to the UK market in 2012. Hyundai Veloster is a sport compact car. Its UK launch will be supported by the well planned marketing mix that will help the manufacturer to build the effective Hyundai Veloster knowledge within the target audience with the use of TV, online and national print marketing activities.
- Situational analysis
- Market analysis
According to the available UK cars sales figures (SMMT/Mintel data for the period of 2006-2010), UK Cars figure illustrate the output approximately 1.3 million cars in 2010 and this growth of 8% comparing to the year before is indicating to the car demand increasing, despite the fact that the production in 2007 and 2008 is higher but the big improvement in 2010 gives us a strong indication in how the market is going. In addition, SMMT/Mintel data confirm that the small to medium-sized cars dominate purchases on the UK car market. These data claim that the largest segments for new car sales in 2010 were supermini and lower-medium-sized cars, which together accounted for 63% of volumes.
It should be noted that the manufacturer of Hyundai Veloster defines its car as the representative of the S (sport cars) market segment. In accordance to the European classification it is defined as G segment. Nevertheless, Hyundai Veloster has competitors in several segments such as A, B and C segments parts of which are moving towards sportiness. A great example of such category’s shift may be the launch of C-Class Coupe Sport by Mercedes-Benz in 2012 which represents the transformation of C-Class.
Clearly, compact cars and coupes are the attractive segments of the car market that despite the economic downturn of the recent years have demonstrated the confident growth in the UK market. The cars that represent these segments compete with each other within these segments. Additionally, the different market segments compete with each other as well, and the frames of these segments are actually shifting now and new car modifications appear.
Tim Pollard (2011, Web) describes the market capacity forecast for 2011: The Society of Motor Manufacturers and Traders that is responsible for statistics of the UK car industry, forecasts a 5% decrease in 2011 UK car market sales in comparison to the results of 2010 and it forecasts 1.93 million of car sales on this market. These experts also note that there is an obvious motor manufacturing recovery trend that was seen in 2010 and that car industry in the UK may expect the further steady growth.
- Market demand
According to the data of the UK August 2011 car sales available online, the biggest growth was demonstrated by mini segment (up 34.5%) and supermini segment (up 17.6%). A conclusion could be made that the market demand for the both car segments is high.
At the same time based on SMMT data conclusion could be made: larger, and typically more expensive, cars have much lower volumes, with the 4×4 SUV, multipurpose and executive segments the most notable with nearly 19% of sales in 2010. Therefore, compact cars have much more chances for market success in the UK. Even sport cars have to be smaller to meet the demand trend,
- Market segmentation
In order to create the effective and realistic marketing strategy, the company should target not only the sport cars segment (G-segment, also known as S-segment), but also the B and C market segments. It should be noted that sales and competition in B segment are booming. There is no doubt that the major customer’s expectations of B-segment cars include fuel efficiency, good performance and of course superior car interior. (Griffey Web) The characteristics of Hyundai Veloster allow it to compete successfully with the best representatives of both B and C segments, and not only G (S) sport cars segment. The Veloster is the new standard of versatility for the compact car segment without sacrificing efficiency. (Voss & Rawlins, n.a.) Such features as the best-in-class interior volume mixed with sporty looks will help Hyundai Veloster to compete against its powerful competitors that represent B or C segments. (Voss & Rawlins, n.a.)
- Competitors
In accordance to Choy (2012) the market that Hyundai Veloster is entering is extremely competitive hot-hatch market. The direct competitors of Hyundai Veloster on the UK market according to its manufacturer are Volkswagen Scirocco, Vauxhall Astra and Renault Megane Coupe.
The article ‘UK car sales’ (2011) indicates that the Ford Fiesta was the UK’s best-selling model in September 2011 and despite the fact that it traditionally represents the B-segment, many customers perceive it as the representative of C-segment, so Hyundai is definitely recommended to consider this hatchback as a close competitor for Hyundai Veloster.
- PESTEL Analysis
- Political factors
There is no doubt that regulations are considered an important factor for the UK industry. The regulations regarding environment and safety issues are considered as of the major importance.
- Economic factors
The economic situation and car industry often influence each other. On the one hand, the development of the car industry has a great influence on the economy and development of many other industries that supply the resources or materials for car market. There are a number of researches that claim the impact of auto-producers on other industries.
On the other hand, the economy trends influence the demand on the production of this industry. Therefore it critically important to analyze the possible impact of the crisis that happened in 2008-2009 and also the possible negative impact of the current sovereign debt crisis on the UK car industry and car market.
- Socio-cultural factors including consumer behaviour
This group of factors is vital for the car industry. Socio-cultural influence the consumer behaviour and consequently it forms the consumption trends. Compact cars are designed for the urban population, for the citizens of the big cities who want to be mobile but at the same time they are the trendsetters, they value the fashion and the attractiveness attributes of cars. These motives of the modern citizens of the big cities are targeted by car manufactures
- Technology
Technologies are extremely influential and they tend to affect the majority of the modern industries; car industry is not an exception. They make an impact of the car industry in two major aspects.
Firstly, technologies influence the innovations in the car industry. Secondly, they influence the customers’ choices via internet. The clients use the internet when making the initial decision on the choice of the certain car model. (Neely, 2002, p.30) Therefore internet influence may be considered as threat and also as a great opportunity for the car manufacturer.
- Demographic factors
The demographics is also an important factor that defines the target audience of the car segments. The target audience of the sport cars are mostly men in their mid twenties –mid thirties.
- Global factors
The global factors include the influence and the role of the associations created by the largest car producers (for instance, Alliance of Automobile Manufacturers). These organizations may influence the industry via introduction of the global car industry regulatory standards.
- SWOT Analysis
Strengths/Weaknesses:
- Market capacity
According to MINTEL forecast, the UK total car market volume will be decreasing from 2,031,000 in 2010 to 1,539,000 in 2015 which equal % 50 decreases. Also in some optimistic cases it forecast growing in the market volume from 2,031,000 in 2010 to 2,369,000 in 2015, however, in any cases even so in worse forecast which is decreasing to 709,000 in 2015 the market potential is very bad to introduce a new car which will attract some of the customers. (MINTEL)
Therefore the market capacity is likely to decrease and the new cars should have strong competitive abilities, their manufacturers should have an ability ensure consumers in their cars safety and attractiveness.
- Previous experience
In order to compete and to be viewed by the clients as the reliable producer, the companies that want to gain the leadership in the car industry (no matter which the segment is chosen) have to confirm their previous positive experience in the car manufacturing business. Otherwise they will have to spend a lot of money and time to ensure their potential customers in their reliability.
That is why the start up projects in the car industry are considered to be a rather complicated initiative and the investments will be received back in a number of years (and only in the case if the project will become successful). The majority of competitors have a well-established long term reputation and the global recognition, how could a start-up company compete with these giants?
- Alternative Energy Movement
The environment regulations and alternative energy/hybrid trend both have a substantial impact on the car industry, and therefore any company has to be able to meet the environmental requirements otherwise non-compliance will cause may lead to the market share loss and a decrease in profit. Therefore, it should be specified that the companies should be oriented on the production of cars that are hybrid friendly and fuel efficient.
- Organizational Structure
Organisational structure of the car producer should be modern and flexible in order to quickly respond to the market challenges. It may be considered as strong side or the weakness depending on the situation.
Opportunities:
- Innovation, new technologies
- Hybrid vehicles and eco-friendly car models
- The global expansion
- The developments of new designs and forms
- Develop New Vehicle Styles and Models
Threats:
- The rise of fuel prices
- The rise of competitors, their increase in numbers
- Increased social and other costs (staff health care benefits)
- The rise of resources and materials costs
