Hyundai was recognized as one of the top spot terms based on corporate brand loyalty amongst American potential customers within automotive industry. Hyundai has improved over the years, migrating from cheap brand with cheaper quality to one of the most recognized loyalty based brand. Hyundai’s Kia brand appeared as one of top individual brand loyalty within America. The change in brand took fairly longer time than expected to catch up with corporate auto brands, hence competing favorably with top brands such as General Motors and Ford. The company focused on good quality and pricing techniques which contributed great deal on its brand quality. Such strategy assisted Hyundai in differentiating itself from other competitive car brands within the market. Such brand promise communicated adequately company’s belief system in providing quality products at affordable prices. Their concept of 10-year, 10,000 mile warranty proved the company’s seriousness in acquiring big percentage of the market share, since it attracted new buyers as well as encouraging repeat purchases (Kotler and Keller, 2007).
The company based their marketing strategy on the fact that consumers change taste with time. This made Hyundai to improve on their innovative capabilities for the purposes of creating new car designs and at the same time utilizing appropriate marketing communication mix strategies such as sales promotions. Such strategy encouraged advertisement focusing on hyping of new kind of return policy making consumers to talk and buy much of Hyundai brands. Advertisements promoted Hyundai by convincing consumers on the quality of the product and terms of purchase which guaranteed no loss on the side of customers (Kotler and Keller, 2007).
Discussion on influence of Hyundai’s value-pricing strategy in consumer decision
Value-pricing create significant value on car brands within automotive industry. Consumers are always ready to pay higher prices for identical luxury vehicles in the market. Brands are crucial factor amongst consumers when it comes to buying habits. Despite growing interest in their new brand image, customers still had slight negative attitude based on poor understanding of the brand. Such a case can be attributed to the fact that consumers usually have deep insight when it comes to differentiation of various car brands. They evaluate the brand based on earned reputation for car’s excellence compared to total cost.
Significant quality, attractiveness, low cost of ownership and warranty coverage appeals to consumers. Resulting value proposition increased Hyundai brands unit volume as well changing consumer perception concerning the brands. Due to such value-pricing strategy, consumers acknowledged Hyundai brand personality, cost of ownership which contributed towards driving consumer shopping behavior towards Hyundai products. Prices offered affected near-term demand since sales jumped from a low of 90,200 vehicles in 1998 to 467,000 in the year 2007. Despite the sales, first timers wishing to own cars declare their lack of interest in owning Hyundai car owing to its product cycles. In consumers’ minds, Hyundai brand represent combination of product excellence as well as cost ownership which overrides other competitors making them trade-off curve. Accumulated product experience shaped consumer perceptions towards the brand, this was done through direct product experiences such as safety ratings and product reviews.
Discussion of other factors driving consumer decisions and satisfaction
Brand positioning and development play an important role within the automotive business strategies. Brand reputation should exceed demonstrated product attributes. Contrary to other consumer goods, automotive brand perceptions usually change based on consistent as well as sustained changes within company’s product portfolio. Basically, relative performances of Hyundai products are based on excellence and cost. For increase in sales to be realized, Hyundai should include additional insights concerning brand differentiation. They should include the aspect of luxury and prestige to which majority of consumers focus on since they believe other qualities such as reliability, safety and ride accompanies prestige. At the same time, consumers focus on the size of transaction, duration of ownership cycle and sense of self-worth which all contribute towards level of attraction hence rise in sales.
Emergence of passive interaction devices such as iPod and MP3 players enables easy communication and advertisement between company and consumers. Such devices are used as players of content hence not having human level of understanding. The nature of interactions from the user cannot be easily measured or quantified. On the other hand active interaction devices such as PCs and Mobile phones allows for collection of usage data while making use of the input sensors.
Discussion on Segments
Due to new technology, it is vital to develop sales team capable of reviewing online social networks after every short period during marketing processes within target markets. Basically, such segments as represented the lady in the case study represents self- dependency based on personal interests and desires. New technology has advantages and disadvantages of carrying out the project, achievements and relevance of the management’s priorities (Kerin et al, 2011). Concept of geographical segmentation has led to generation of various changes within product portfolio of Hyundai since consumers have different preferential taste depending on region represented. Introduction of computers and mobile phones has helped in reinforcing modernized communication system. There is an agreement that use of computers and use of information technology is capable of enhancing effectiveness of communication in terms of company’s operation strategies. The same effectiveness can be utilized in its application within every market segment. Computerization can be the most basic yet efficient process that an organization can demand in their every segment.
Management within any organization is endowed with responsibility of ensuring that segments dealing with new brands are capable of setting clear conditions for schedule and tasks that needs to be achieved. A standard contract for signature is drawn for the purposes of allowing contract consider all obligations. Such project allows existence of good marketing strategy depending on appropriate processes, goals and alleged schedules used in project implementation. The lessons learned from technological innovations should be stored to ensure that clients are comfortable. Establishing processes for terminating projects that are not feasible help in achieving objectives and goals of branding based on available market (Grimwade, 2000).
Pros and cons of Hyundai’s branding strategy
Impact of branding on new and emerging technologies and their applications is evident in Hyundai’s project portfolio. Differentiation on image branding has capability of taking very sharp and upper dimensions within the market. Use of modern technology in integrated marketing communication mix has been identified to include advances in product differentiation within the market based on unique qualities. Such branding strategy through modern technology can be attributed to increase in the number of customers capable of accessing information from internet as well as new display technologies (Fill, 2005).
Strong car brand assist in creating significant value of Hyundai within the automotive industry. This encourages consumers to pay required prices based on value attached. Superiority of the brand used helped in extending Hyundai’s fame across every model of their cars. However, perceptions on brand name at times prove not perfect since some brand reputations fall below standards of their own product attributes.
References
Fill, C. (2005). Marketing Communications – Engagement, strategies and practice. Edinburgh Gate: Pearson Education Ltd.
Grimwade, N. (2000). International trade: New patterns of trade, production & Investment. (2nd ed.). New York: Routledge.
Kerin, R, Hartley, S, & Rudelius, W. (2011). Marketing. New York: McGraw-Hill/Irwin
Kotler, P, & Keller, K. (2007). Marketing Management. Upper Saddle River, New Jersey: Pearson