Hyundai looks at sharper positioning in future

BY IMPACT Staff

Nalin Kapoor, Senior General Manager & Group Head – Marketing, Hyundai Motor India Ltd, talks about emerging consumer and marketing trends, evolution of the luxury segment and the importance of the digital medium

Q] The brand has had an association with Shah Rukh Khan for ten years now, how has this benefitted the brand in terms of sales?

It definitely leads to top of mind recall and brand recognition. Earlier, Shah Rukh was the brand ambassador for Santro and more recently he has represented i10. All our surveys and researches tell us that his association with the brand is extremely strong. We see great value leading to brand salience and recognition; this leads to business in the market place as well.

Q] Has Hyundai cut back on its advertising and marketing budgets due to the fuel price hike?

We haven’t cutback on our expenses, we have optimized them. In fact, we were the first ones to bring out the Petrol Price Lock Assurance program on the very next day of the fuel hike. This was announced in leading newspapers supported by digital media. Under the program, customers were offered discounts on the petrol models of the Eon, Santro, i10, i20, Accent and Verna. The program covers the fuel hike for the next seven months, and is valid for purchases made till May 31st .

Q] India has been an extremely price sensitive market. Besides pricing, what are the other factors that play an important role in the purchase process?

Price remains fundamental across all segments. Style has climbed up in the choice quotient with a requirement of features. For instance, with i10 and Verna, we launched the rear parking camera. We were the first to launch this feature in the segment for which we received positive feedback. Consumers have become very receptive to new features that make their driving very enjoyable and safe. A few years ago, consumers’ choice was only focused on value for money. Now, consumers are looking for a strong combination of features, technology and style.

Q] Have you seen a growth in the premium segment? What is the strategy used to target this segment?

Earlier, the consumer’s interest and interaction with the luxury segment was sporadic . The consumer’s understanding of luxury brands has now increased most definitely. The luxury segment has evolved as a definitive segment and various manufacturers including Hyundai are targeting it. We communicate to this segment via a lot of direct and niche marketing, even the choice of media vehicle is very select. For example, for Sonata we used only business newspapers, specific interest magazines and websites. Additionally, airport marketing was used as a tool where we displayed our car at the foyer of the airport; we also used in-flight branding to reach our target segment strongly and effectively.

Q] What is the strategy used to tap Tier 2 and 3 markets?

Marketing Tier 2 and 3 cities is definitely a very important engagement for us and we are extremely mindful how these markets behave, which are the specific time periods when marketing is most effective and how we communicate to them. It is a very important element in our overall marketing strategy.

Our brand positioning and business momentum is very strong in Tier 2 and 3 cities. Our media vehicles include use of radio and outdoor media in vernacular languages. The content of the message itself can be slightly different from what we do in other cities. It also varies in terms of language, colour, manner and tone. All Tier 2 and 3 cities do not behave uniformly, which is where geographic and state differences come in, we are mindful of the fact that we need to communicate to a certain region during their festival which it is more effective compared to another region.

Q] Do you think the distance between the rural and urban consumer has drastically narrowed?

Yes. The distance is definitely far less. At the same time, the usage of the car and the buying pattern is slightly different, too. Among Tier 2 and 3 towns, the purchase still is a family or collective purchase wherein you speak to your friends and relatives before buying. The purchase process and usage patterns are different; the understanding of the product and assessment is a common theme between the rural and urban consumers.

Q] What are the general marketing trends in the automobile industry today?

There is a definitive focus on the corporate brand of letting the customer understand what the corporate brand means. The role of the digital medium in the overall marketing strategy has got further enhanced and cannot be underestimated. A large proportion of consumers are going to the digital space to understand, compare and look up specifications. While they still go to dealerships, the digital medium has become a pre-step. Also the consumer demographic is younger today, so we see a lot of youth marketing.

Q] What is the role of experiential and digital marketing in your marketing mix?

The digital medium is integral to each and every campaign we do; we ensure every campaign has a digital foot print. Experiential marketing is essentially used during the launch of a product or when we want to tell a new story about the product. It is used to give the consumer a touch and feel of the product. To us, digital is a more consistent medium.

Q] What are the plans for the brand for 2012 – 2013?

The consumers will see sharper positioning and communication for all our products.

Q] How do your marketing campaigns differ per product? What is the common thread in all communication?

The common thread is our brand slogan ‘New thinking, New possibilities’, which is present in all our communication. Besides, our communication portrays it has come from one company that is stylish, modern and edgy.

While we have an underlying theme, there is a clear takeaway for each product. For example, the Eon is for the whole country, the communication makes it relevant to anybody from any town, and any city , while i10 says life is brilliant when you drive this car. The communication pegs are distinctly different for all the products. We clearly define what each product means to the target audience and what is its USP. We then map this for various products and match it with the target audience. On the basis of this we determine the communication, channel and message.

Q] What is the differentiating factor for the brand vis-à-vis competition?

Moving with the times in terms of product, communication and all other aspects.

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Tags : CMO Interview