Essay Example on Hyundai Motors: Pioneering Automotive Vehicle Manufacturing in East Africa

Introduction

Hyundai Motors is a multinational company that manufactures automotive Vehicles. The companies headquarter located in Seoul in South Korea. This company is currently operating in many countries in the world. For example, last year, it opened a first car assembly in east African at Addis Ababa. According to the chief executive of the Hyundai company, the market opportunity in Ethiopia is excellent, and they expect the economic growth of this country to grow faster. Therefore, this task will review the brand audit and brand plan of the Hyundai company.

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Brand Audit

Almost every company performs a brand audit analysis. Whereby, the management of a company view the performance of the company and compare it with the goals expected to be achieved. According to some studies, brand audit analysis may differ from one company or industry to another (Rhee, Bohnsack & Lee, 2017). This analysis its sometimes complicated and hard, as the companies try to be more innovative as a way of struggling to stay at the top of the competitors. Some of the innovative ways that companies adopt are; rebranding their products and benchmarking the performance of the competitors.

Hyundai company is one of the international companies which performs with the dependence of brand audit analysis. The analysis has profoundly helped the company to expand its market as well as position its car products. The following is Hyundai motors brand audit analysis;

(i). Product differentiation Attributes

The company has been producing different and unique vehicles as compared to its competitors. For example, cars are manufactured in various designs and ensure that every person is driving comfortably. For instance, Santro is a small car manufactured by the Hyundai company, and it provides comfit to the tallboys (Rhee, Bohnsack & Lee, 2017). Also, the price of this particular brand it's nice or worthy as compared to this powerful machine. Although the price may vary from one product to another, the company has other different brands with different pricing to ensure all the customers enjoy its services. Thus, differentiating attributes of the products in a company, it plays a role in the performance of the company.

(ii). Brand Positioning

Indian automobile is one of the competitors of the Hyundai company in the market. In the world, the Indian automobile market is growing very fastest as compared to the other company. According to some researchers, the company is the largest in the manufacturing and marketing of small cars. For example, Maruti Suzuki is the largest brand small car in the market (JO & Yoo, 2018). However, other foreign companies manufacturing cars entered in the market of Indian vehicles. One of these companies is the Hyundai company and Toyota. Hyundai company have manufactured vehicles similar to those of Indian automobile company as a way of positioning its products.

Hyundai motors have remained to be the only competitor of Maruti due to its model's portfolio. For example, in the market segment of Hyundai motors, there are four different models that have been performing very well. The target customer profile of these models is the same as that of Maruti brand models. Also, the Hyundai company has another different segment of marketing other models like i20, and soon it's expecting to launch the i30 model. This strategy of positioning its brand in the Indian market, it has really contributed to its success. It has also enabled the company to set up a company manufacturing its Hyundai cars in India for the domestic and export market than its home market.

(iii). Marketing Communication

Communication is one of the strategies which has helped the Hyundai motors. Marketing communication is whereby the company tries to advertise its products to its customers. Hyundai company initially used the Santro model as a communication strategy in India. The brand of this particular car was admired by many Indians as it was comfortable in its small size and very affordable to all Indians of the middle class.

Currently, the same model is being continued or improved, i.e., there is a new model with a similar feature called i10. Also, there are other models that have been positioned in the market so as to create some different perceptions of its customers. For example, most of the Indians might prefer Maturi models because there is a perception that they save money (Rhee, Bohnsack & Lee, 2017). For instance, it is cheap, and it has a low diesel consumption as compared to other vehicles.

In this segment of marketing communication, the quality of a model is the key. For example, when one is purchasing a car, there are some aspects that he or she look for. For instance, the Hyundai cars which consume diesel one must confirm how an engine is responding. Thus, the company is planning to introduce other models, just like how Toyota company did to the Lexus model. Although at this particular age of the Hyundai company seems to be a long shot, the company can try to position its advertisements, which can communicate its image of cars to the world. For example, the company has already attempted to market a series of i20 and i30 models. Moreover, the company can try to focus on modern technology, and all perceptions about the old Korean brand on diesel engines will be withdrawn from the customer's mind. Thus, this will enable to company to expand its marketing in all parts of the world.

(iv). Brand Presentation

The brand presentation is one of the marketing strategy programs in the Hyundai company. For example, the company has a unique Hyundai logo, which highly attracts its customers. Most people have a perception of the products manufactured in this company. For instance, they say that the car models are of high quality as compared to the others (Lee & Kim, 2017). This is currently acting as one of the strengths associated with the company, and it's making the company management to be more innovate so as to produce something better. The brand presentation has helped the Hyundai motors to remain at the top of its competitors in India. Also, due to its concentration of manufacturing quality products, its product cars are the most preferred by different organization segments. For example, most of the governments in the world usually have a bulk booking of Hyundai cars.

Factors Contributing Towards Brand Performance of Hyundai Cars

The company has been manufacturing quality products with different new designs. This one of the factor which has increased the performance of Hyundai motors. For example, the manufacturing of small model cars has highly increased in India, and most of the Indians in the middle class have shifted to the Hyundai market. Thus, increasing its performance at a higher rate.Increase the rate of manufacturing its brand products. The Hyundai motors company has expanded its operation in a different part of the world. For example, after it started operating in India, the company overtook other car manufacturing industries in that country. Thus, increase manufacturing rate has increased the brand performance of Hyundai motors, and more expansion is expected to the rest part of the world.

Application of innovative strategy in the development and improvement of its Hyundai cars. To handle the issue of competition in the market, the company has developed its cars in different models from what is in the market. For example, the manufacturing of cars that are friendly to the environment (Lee & Kim, 2017). Thus, this type of strategy has contributed to the Hyundai motors performance.

Good customer relationship has also enabled the company in contributing towards the brand performance. Hyundai company manufactures what its customers want. Also, the clients at Hyundai motors usually enjoy a long-term payment as a mode of the payment program. The company also operates in 24 hours for the customer's assistance service. Thus, a client can ask anything concerning the company's products at any time.

Challenges Connected to Brand Performance at Hyundai Company

For many years, competition has been one of the greatest challenges at the Hyundai company. For example, there are different Japanese and United States automakers. However, the company has tried manufacturing quality cars at an affordable price. For example, due to the manufacturing of good cars, the company overtook Indian industries that were manufacturing cars. It's become one of the best-performing motor companies in India.

Although many businesses and companies are affected by the economic recession, it has deeply affected the Hyundai motors company. For example, during 2008, when there were financial crises, the company made a lot of losses (Lee & Kim, 2017). Also, due to the current global economy, the company is not performing well as it was predicted to perform in the past.

Recently there is a decrease rate of clients in the car market. For example, in the United States, people with the intention of buying cars have highly decreased. Thus, the company reduces its manufacturing rate as there are no customers to prevent producing more cars. These factors have been affected by the decrease in people who can afford a car due to the unemployment rate.

Brand Plan

In almost every company, it must have a brand plan of developing its strategies for marketing its products or services. Developing a strong brand plan helps in providing product visibility in the market, as the strength of the brand can be measured easily. Also, it's a relevant method of reviewing to the target customers what the company is planning to produce in the market (JO & Yoo, 2018).

Brand plan or development is whereby there are the creation and strengthening of products and services in a company. This process of developing the company's brands has three phases which are; the company ensures the brand strategy in connection to its business objectives. Then, the company develops tools that will be used as a marketing communication of the brand, i.e., brand logo. Lastly, the company has to strengthen or update new development.

The company is in the process of developing the brand plan so as to improve its marketing strategies. Hyundai company has a lot of strengths that position it at the top of its competitors. However, the company is also faced with several weaknesses during its performance.

Brand Strengths

The Hyundai company is listed as the sixth-largest company in the manufacturing of automotive brands in the whole world. This factor highly markets the Hyundai cars as most of the customers are normally attracted to the brand that is currently in the market, and it has no connection to issues.

Hyundai motors are very effective in the research and development of new ideas. For example, the company is well known to be improving its products from old to modern models. Also, there is the use of researches by manufacturing innovative new cars in the market (Choi & Choi, 2016).

Cars manufacture at the Hyundai company are of high quality as compared to the other companies. Thus, the vehicles of Hyundai motors are durable cars. Also, the company ensures that the prices of its products are friendly to the customers. For example, only a low cost is needed for a person to start driving the Hyundai car.

Excellent design and vehicle safety have strengthened the Hyundai brand. For many years, the company has been receiving awards as a result of manufacturing very unique models. The designs of Hyundai cars ensure that the vehicle is safe from an accident (JO & Yoo, 2018). Thus, this attracts more and more clients.

Lastly, the Hyundai cars are strongly present in many markets. The company is a multinational company, and this has helped it to set up many manufacturing industries...