Marketing Strategy and SWOT Analysis of Hyundai

When it comes to getting a car, a few things have to be taken into consideration. Reasonably, I think what most of us pay attention to is the brand of it. The more an automobile company achieves reputation, the more consumers is it likely to have. One of those amazing companies is Hyundai. Being founded in 1967, today it is one of the biggest multinational automotive manufacturers’. So, what is it that this company is doing correctly? To find out more about how it has been keeping up, let’s analyze its marketing strategies and SWOT analysis.

Firstly, let us examine the mission and vision statements of Hyundai.

Mission Statement

“Our mission is to treat both customers and employees like guests in our home and make certain our home is a place where people want to be. We ensure that every transaction is guided by the principles of honesty, integrity, and loyalty; and we set ourselves apart from other automotive retailers by having a transparent, enjoyable, and fair process in all of our business practices.”

We can infer that the main mission this company has is to be fair to its customers. They do not want to sell their products just for the sake of earning money. They want the advantage to be mutual. They care about their customers’ comfort and safety. A close relationship with consumers is a very important matter. If consumers feel at home in a Hyundai vehicle, then the latter’s mission is considered complete.

Vision Statement

“We not only pursue corporate growth but also seek ways to achieve co-prosperity with all our customers throughout the future. All companies in the Hyundai Motor Group share the same vision to invest in the present and shape a better tomorrow in the sectors most closely interconnected with daily life, from automobile and parts to construction, steel, finance, IT, and resorts. At the heart of “Together for a Better Future” are our respect for people and our efforts for environmental conservation.”

This company is looking forward to investing in different sectors. It is a very smart move indeed because that way it is going to be in the eye of people all the time. Buying a car, exchanging a key with money is not the only focus that this company wants its customers to have. The customers’ future also matters. How they live and prosper can be directly affected by Hyundai. It takes all of us to build a good future.

Now, let’s get to the positioning strategy of Hyundai.

For doing so, I suggest examining the following Instagram post.

In this Instagram post, Hyundai is advertising one of its latest creations, Palisade. In the second photo, we see the parked car in front of the beautiful sunset. In the first photo, we see some friends gathered around, being engaged in a conversation. The caption is suggesting that people should always try to find new adventures.

It is also important to be surrounded by an interesting company while doing so. And there is only one thing left that is needed. A nice and comfortable vehicle that will guide us along the different journeys we decide to take. The Palicade can be a great option.

The main message in this post is to go out and explore. Be surrounded by good people, and explore new things. To be free in the big world that we live in. The mentioned points are pushing us to a big hint. What other archetype would describe Hyundai better than the Explorer? The archetype of freedom, exploration, and individuality.

So, what are some things that are important to note about Explorers?

Desire: the freedom to find out who you are through exploring the world

Aim: to experience a better, more authentic, more fulfilling life

Strategy: journey, seek out and experience new things, escape from entrapment and boredom

And now, let’s look through the messaging levels of the Explorer brand archetype.

Level One: alienation, dissatisfaction, restlessness, yearning, boredom

Level Two: hitting the open road, going out into nature, exploring the world

Level Three: seeking your own individuality, to indicate, to become fulfilled

Level Four: expressing individuality and uniqueness

The Explorer may be fitting for your company, if

• your product helps people feel free, is nonconformist, or is pioneering in some way
• your product is rugged and sturdy or is appropriate for use in nature, on the road, or in dangerous settings or occupations
• your product can be purchased from a catalog, the Internet, or another alternative source
• your product helps people express their individuality (e.g. fashion, furnishings)
• your product can be purchased and consumed “on the go”
• you seek to differentiate your brand from a successful Regular Guy/Gal or other more conformist brands
• your organization has an Explorer culture

Moving on, let’s take a look at Hyundai’s SWOT analysis.

Strengths

• Entering new markets is always important. Hyundai has made sure that it not only goes into new markets but also gains success from them.
• Hyundai has successfully integrated different companies such as tech ones in hopes of building a reliable supply chain.
• When it comes to reaching the market, a strong distribution network is a crucial factor, which has also been achieved by the company.
• With the number of vehicles that Hyundai has put out there, it has built a strong portfolio.
• The company has strong Go to Market strategies.
• Hyundai also has a good dealer community. The relationship between the company and its dealers makes it possible for the latter to promote Hyundai’s products like none other.
• Because the investments in new projects end up being successful, good returns on Capital Expenditure are made possible.
• Hyundai invests a good amount of money in training its employees. Because the outcome is going to be double-sided, and beneficial.

Weaknesses

• The competitors have somewhat of an advantage. Most of Hyundai’s products are successful when it comes to sales. Its selling proposition is not well-defined which leaves room for competitors to attack.
• When it comes to niche categories, the company hasn’t had much luck and has lost market share.
• In its category, Hyundai is very successful but when it comes to other industries, the success has been limited.
• Hyundai’s arrtirion rate is higher compared to its competitors. The employees’ training costs much more than it does for competitors.
• As the company is expanding to more parts of the world, it needs to invest in new technologies. Which, as its own, costs a lot of money.
• Expansion in adjacent product segments is also limited. The reasoning behind that is that the company is consistent only with the present business model.
• The product range sold by the company is inconsistent. There are gaps that can give the competitors more advantages.

Opportunities

• The market is overall developing. So, it makes Hyundai’s competitiveness increase pretty possible.
• As consumer trends are changing more and more, Hyundai can use the situation wisely and enter new markets.
• The consumption of Hyundai vehicles by the state and federal government contractors. It is possible because of the government’s green drive.
• In the new market, Hyundai’s pricing can be differentiated. It will not only continue the relationship with existing consumers but also bring new ones into the picture.
• There are new environmental policies and understandings. Thus, the company can benefit from it by creating sustainable products for example.

Threats

• As liability laws vary in different countries, the company is exposed to various claims in different markets. As the policies may not match the offers.
• The company is available in different countries, where currencies are different. Therefore, income fluctuations are possible.
• Hyundai regularly invents new products. However, most of the time, they are just a response to other players. And because the supply of these new products is irregular, the sales number fluctuates.

Moving on, let’s get to discussing the segmentation strategy of Hyundai.

Let’s watch a short clip to get a better understanding of it.

https://www.youtube.com/watch?v=rYsd37JrXPM

The video begins and we already see a cute puppy. Already a good start. We see him going back and forth to the house and to the yard. He picks different home items and hides them. The last thing that we see him putting away is a car key. Then his owners come out: a husband and a wife. They are looking for the key.

There are many holes dug by the puppy and it would take forever to try to find the necessary item. The owners are in a rush. So, the husband chooses to instead use a phone application to open up the car doors. Then the commercial ends and we see what it was advertising. Hyundai ELANTRA, which is a phone application that you can use instead of a spare key.

Now what clues are hidden in this advertisement? The first and the most major one is the feeling of family presence. We have an impression that the couple is sweet and loving. Then, another thing is that we can tell that their home is their safe and comfortable spot, an important place in their lives. And we get an overall peaceful and chill vibe. All of this leads us to conclude that the segment that Hyundai chose to target are the Floaters.

Now, what do we know about Floaters?

Lifestyle and values:

Floaters really care about family and spending time with them. Cooking good meals and even cleaning as long as at home. Even though they may not have the best budget, they still do everything of their power to provide for the family. Home is the safest space where kids can grow up and learn things. This segment does not really care about appearance. It is better to get clothes in which you will feel comfortable than put together outfits that look good but don’t feel quite the same.

Floaters go to work for the sake of money. They don’t actively search for new opportunities for career growth. A reason behind that is they don’t like to be in control, but rather being told what to do. And it is the same when it comes to relationships. This segment prefers committed and long-term relationships.

Shopping preferences:

This segment likes looking for discounts and special offers. Using money in a smart way is very important. The lower the price, the better. It’s nicer to get a few items at lower prices than to buy one high price item. In their case, even if the product quality is low, it is still preferable if sold at a reasonable price. It takes a lot of time for Floaters to start purchasing new brands.

Here are some other interesting facts about Floaters.

They 

• Like spending their free time at home
• Prefer a quiet evening with the family, rather than going out
• Don’t do sports, nor are interested in social events
• A daily walk is all they would do as an exercise
• Meeting up with the big family on the weekend is a tradition for them
• Are close to nature
• Rely on TV to keep them informed
• Seek local news, sports broadcasts, request shows, talk shows, police news, and series
• Have a below-average national newspaper and magazine consumption
• Aren’t really interested in the news other than what is happening in their direct environment
• Don’t use the Internet because computers confuse them
• Hardly ever listen to the radio

Ultimately, this blog found some insight regarding Hyundai’s mission and vision statements, the archetype it belongs to, its SWOT analysis, and segmentation strategy. For many more posts like this, check out our website where we regularly update our feed.