Kia Motors' Marketing Plan In India: A Strategic Essay.

The marketing plan is to be based on a company (product) of your choice. You are expected to analyse the current market conditions, target market, marketing mix and then formulate recommendations.  It is suggested that you do NOT choose successful multinationals such as McDonald’s, Apple, Sony, Nike etc. Instead select a company that has a product or service that is a fairly new introduction into the marketplace OR is in the decline stage of the product life cycle.

Background of Kia Motors

The main objective of this report is to make a marketing plan for Kia motors to gain various opportunities and benefits in the global market. It is a continuation part of assignment 1. In assignment 1, SWOT analysis and pestle analysis had been done to flourish the business in Indian market. The situational analysis had been done in part 1 that helps to identify and measure the challenges, risks and threats of the Indian market. In this report, it is explained that how the company uses marketing strategies to struggle with competitors in the Indian market. The marketing strategies such as targeting strategy, positioning strategy and marketing mix strategy have been explained in the task briefly. These strategies help Kia motors to attain optimum level in such market by selling the mid size SUV and a Sedan cars. A marketing mix that is recommended to initiate the business in the Indian market also has been discussed in the task. More detail of the paper

Kia motors is a second biggest automobile manufacturer in South Korea, incorporated in 1944 (Kia, 2018). The company is a part of the Hyundai Kia automotive group and it is the fourth biggest automaker across the world. The company is operating and managing its business activities in more than 155 counties, Kia motors has annual sales in excess of 1.4 million (Kia, 2018). The main vehicles of Kia motors include luxury cars, automobiles and commercial vehicles. The company is selling all these products in the international market to be a leader in automobile industry.

The marketing strategy is a forward looking and long term strategy to attain common objectives and goals in the competitive market. No company can uplift profitability and survive business without using marketing strategies (Armstrong, Adam, Denize & Kotler, 2014). There are various strategies that used by Kia motors while functioning and operating business in Indian market. The marketing strategies help the firm to analyze risks and threats of the market along with this, strategies help in attaining competitive advantages. The company uses segmentation strategy to attain common objectives, targets and goals. By implementing segmentation strategy, the Kia motors has been able to categorize Indian market into the different segments such as behavioral, demographic, geographic and psychographic (Lansbury, Suh & Kwon, 2007).

It is stated that the target marketing strategy plays a significant and empirical role in analyzing and determining the tastes, preferences and choices of the customers. To select adequate and dynamic target market, the company checks and evaluates the size of the Indian market. The main target market of the company includes youngsters, and price conscious people who want to buy the vehicles at appropriate prices. Apart from this, Kia Motors also focuses on the family class and middle class people who are failed to pay higher prices of the automobile vehicles. An overwhelming study shows that Kia Motors Company uses differentiated targeting strategy for producing and selling its automobile products as the customer segments and enhance and improve the customer satisfaction (Zorkóciová, Šimorová & Šášiková, 2014).

Marketing Strategies for Kia Motors in the Indian Market

Apart from that, Kia Motors also uses positioning strategy to build and develop a strong and dynamic image and position in the global market. Positioning includes the way an organization’s marketing activities are perceived by the key target audience with regards to marketing approaches used by the competitors like Toyota, Honda, and Nissan motors in the Indian market. It is analyzed from the various studies that Kia motors uses value based positioning strategy to take various functional benefits in the global market (Tomiyama, 2016). An effective and dynamic positioning strategy identifies and considers the weaknesses and strengths of the company, the needs of the customers and market and the position of the rivalries. The main motive of Kia motors positioning strategy is that it permits the firm to highlight the specific areas where they may outshine and compete the competitors in the Indian market. The main motive behind the using of positioning strategy is to promote the automobile products in the Indian market (Akpoyomare, Adeosun & Ganiyu, 2013).

The marketing mix is innovative strategy that is used by Kia motors to capture entire target audience and to achieve various competitive benefits globally. In order to boost and maximize the profitability and revenue, the company uses marketing mix strategy. The company uses this strategy to introduce new cars such as mid size SUV and a Sedan in the Indian market. The marketing mix strategy for Kia Motors Company has been discussed below.

Product strategy: Kia motors is one of the growing and leading car manufacturing organizations. Kia is a producing various commercial vehicles that are the products in its marketing strategy. It is also producing various military vehicles for the government of South Korea. The company has decided to enter into the Indian market to strive with rivals and earn more and more revenue. The car market segment of the company includes sedans, hybrid and electric car, crossovers and minivans and concepts cars. Some of the well known brands include Rio, Picanto, Optima, Cerato, Carnival and Cadenza that help the company to augment profitability and returns in Indian market (Mbaskool, 2018).

Kia motors has been developing its brand image in the international market. By implementing this strategy, Kia motors wants to increase grab entire target audience in the Indian market. It uses innovative research and development centers to launch products like mid size SUV and a Sedan in the Indian market. The company is also trying to develop and improve the ride quality and experience by implementing advanced technologies globally. It is recommended that Kia motors should focus on the product development strategy to increase the sale of vehicles in the Indian market. Brand identity is one of the unique and effective product strategies that can be used by Kia motors while functioning and managing the business activities in such market. By using innovative product strategy, the company can distinguish its products from the rivals in the Indian market (Rakita, Madi? & Markovi?, 2017).

Product Strategy

Price strategy: One of the vital strategies that can be pursued by the company while managing the business in the Indian market is pricing strategy. It is stated that Kia motors follows a competitive pricing strategy in South Korean market. But it has to stepped into the exports vehicles from the producing plants itself. Due to this, the company charges higher prices in some other countries like UK and Africa. It is recommended from the various studies that Kia motors shall focus on the low cost pricing strategy to stand out against the rivals in the Indian market. Kia motors is not only rendering very competitive discounts and offers as its counterparts like Nissan after it has attained brand value in various parts of the globe. As the company is expanding and exploring the ambitiously and upscaling its flagships cars and its other innovative and unique brands, it is trying to shift the ladder of the price range in the Indian market. Moreover, it shall be observed that Kia motors should maintain a price gaps between the ranges of vehicle products so that the brand segments do not overlap in the Indian market (van Tuijl, 2014).

Place strategy: It is noted that Kia motors has received a worldwide network of approx 4000 dealers which serve to more than 170 countries. This will help the company to flourish the business functions in the Indian market. There are 20 regional headquarters which take care of approx 342 sales offices (Mbaskool, 2018). The company has further got a network of approx 11 shopping offices in all over the world which are strategically and effectively placed and able to supply to America, Middle East, Europe, Asia pacific regions and Africa. The company has a huge network to serve the customers internationally (Aula, 2010). It is portrayed that Kia motors has got 3 research and development centers which take care of reengineering the ride experience and cater innovative and unique design in the form concepts vehicles. It further has received technical centers that help in enhancing and improving the safety ratings and effectiveness and ride quality (Nagle & Müller, 2017). The commercial vehicles are also segmented by the company in a hassle free manner. To expand and flourish the business in Indian market, the company should focus on the places and analyze the market effectively. The company should focus on the technician team, research and development centers before implementing the business operations in such market. In this way, the company can attain a competitive edge while managing business in the Indian market (Oh & Rhee, 2008).

Price Strategy

Promotion strategy: Kia motors uses effective and strong marking and advertising policy. It further has gained recognition because of its cooperation and significant association. The company has sponsored Australian open apart from some other events such as FIFA and UEFA. It is recommended that the company must pursue some innovative promotional strategies to beat the competitors. It should further use some innovative social media channels like TV, print media, billboards, online ads, and facebook for its marketing (Mbaskool, 2018). It should tie up with various sports and athletes team to grow business in the Indian market. Various campaigns, programs and sessions shall be conducted by the company while selling mid size SUV and a Sedan cars in the Indian market (Onkvisit & Shaw, 2008). It will help to attract maximum number of Indians in the marketplace. It is evaluated that the organization shall tie up with various NGOs, communities and government to provide support its stakeholders in the Indian market (Mbaskool, 2018).

People: It is measured from the various studies that the company carries out a project to motivate and educate their employees at the workplace. The company focuses on the educations, qualifications and development of the workers while recruiting them for performing roles and responsibilities. It is recommended that the Kia motors shall focus on the quality, educations and qualification of the workforce while recruiting the candidates in the Indian market. The firm further must focus on the job retention and development programs to conduct business smoothly in such market. An employee is considered as a asset of every company therefore, dynamic and effective recruitment and selection process shall be implemented by Kia motors while initiating the business in foreign market (Mbaskool, 2018).

Physical evidence strategy: The interaction and cooperation between the manufacturers and customers shall be done when a business deal is made in the Indian market. In today’s modern world, the company has maintained a tangible presence and a innovative dealership with its new and old customers globally. It is recommended that documentation must be done by the firm while selling the products to the customers around the globe. By using this strategy, Kia motors can gain confidence and loyalty of the customers in the new market.

Process strategy: The company follows a lean manufacturing approach to product vehicles in the global market. It is suggested that the firm should focus on the outsourcing and software engine that help in examining and evaluating 5 systems such as parts sales, vehicles ID no, warranty claims, vehicle inventory and master storage file. The organization should further use innovative policies, processes and approaches to stay in the competitive market (Mbaskool, 2018).

Place Strategy

Partnerships: It is recommended that Kia Motors must tie up with various NGO’s, Indian government, celebrities, and sports and athletes team to accomplish the desired objectives and targets in the Indian market. Further, partnership is also needed to promote and launch mid size SUV and a Sedan cars in the such market (Kia, 2018).

Apart from this, it is recommended that the company must focus on the business level and corporate level strategies to penetrate the entire market (Hill, Jones & Schilling, 2015). It should also identify and analyze the choices, needs and requirements of the Indian customers for capturing entire market and to augment market share. Diversification strategy shall be considered while conducting business in India (Hinterhuber, 2008).

Conclusion 

It is evaluated from the above overwhelming study that Kia motors is growing motor vehicle manufacturing in Korea. The company wants to expand its business in Indian market therefore, a marketing plan is made to launch mid size SUV and a Sedan cars in such market. The above analysis showcases that Kia motors Corporation uses innovative and dynamic marketing strategies to expand operations and actions in the Indian market. It is stated that marketing mix is recommended to achieve desired mission and vision and to cope up with rivals in such market. An effective and dynamic targeting and positioning strategy is further initiated by Kia motors to identify and measure the choices and preferences of the Indian customers.

References

Akpoyomare, O. B., Adeosun, L. P. K., & Ganiyu, R. A. (2013). Approaches for generating and evaluating product positioning strategy. International Journal of Business Administration, 4(1), 46.

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.

Aula, P. (2010). Social media, reputation risk and ambient publicity management. Strategy & Leadership, 38(6), 43-49.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2015). Strategic management theory. Cengage Learning,.

Hinterhuber, A. (2008). Customer value-based pricing strategies: why companies resist. Journal of business strategy, 29(4), 41-50.

Kia.,(2018). About Kia motors [Online], Retrieved from https://www.lockwoodkia.com/about-kia.htm 

Kia.,(2018). Sports [Online], Retrieved from https://www.kia.com/worldwide/experience_kia/sports/sports.do 

Lansbury, R. D., Suh, C. S., & Kwon, S. H. (2007). The global Korean motor industry: The Hyundai Motor Company's global strategy. Routledge.

Mbaskool.,(2018). Kia motors marketing mix (4Ps) strategy [Online], Retrieved from https://www.mbaskool.com/marketing-mix/products/17028-kia-motors.html 

Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably. Routledge.

Oh, J., & Rhee, S. K. (2008). The influence of supplier capabilities and technology uncertainty on manufacturer-supplier collaboration: a study of the Korean automotive industry. International Journal of Operations & Production Management, 28(6), 490-517.

Onkvisit, S., & Shaw, J. (2008). International marketing: strategy and theory. Routledge.

Rakita, B., Madi?, V., & Markovi?, D. (2017). Competitive strategies of late followers in auto industry: case study Hyundai-Kia. Industrija, 45(1), 121-146.

Tomiyama, E. (2016). How do the Marketing Strategies of Major Foreign Automobile Manufacturers in the Russian Market Differ?. English-language papers, 4(0032), 47-66.

van Tuijl, E. (2014). Car makers and upgrading: Renault in Romania. Journal of Business Strategy, 35(2), 13-18.

Zorkóciová, O., Šimorová, L., & Šášiková, M. (2014). Corporate Identity as a Strategic Tool for Companies to Remain Competitiveness in Car Industry during Current Financial and Economic Crisis. Journal of Applied Economics & Business Research, 4(1).