Marketing Strategy and SWOT Analysis of Kia

Cars have a huge role in our everyday lives. We use them to go to work, school, grocery stores, various meetings, and so on. Even imagining simple day to day activities without a car seems unreal. Surely, we all have heard of Kia motors. It takes second place in South Korea’s automobile manufacture after Hyundai. With its motto “movement that inspires”, Kia makes about 1.3 billion dollars a year. That means that a lot of people choose to go for a car from this brand. So, what is it about Kia that draws so much attention from people? To get a better idea about Kia’s success, let us dive into its marketing strategies and SWOT analysis of the brand.

Firstly, let us examine Kia’s mission and vision statements

Mission statement

Kia’s mission statement is “to produce the best vehicles exhibiting superior technology, quality, and value through a spirit of continuous improvement, creativity, teamwork, and value-based relationships.” 

The statement above shows that the company cares about what it puts out there. It wants its creation to be the best, the most convenient, and something that people can rely on. The company strives for being a leader but, at the same time, being a great outcome in case you decide to invest in it. 

Vision statement

The vision statement of Kia Motors is “Establishing a robust marketing culture that permeates every level of organization and within which the distinct needs of customers are identified and met will continue to be our vision for the short, medium, and long term.” 

Again, this is a company that truly cares about its customers and their needs. A company that wants to make sure that everything you ever wish for as a car consumer will be fulfilled.

And the way that the statement ends is also very impressive. It is nice to know that even in the long run a company still aims to thrive. 

Now it’s time to go through the positioning strategy of Kia Motors.

To do so, let’s analyze the following Instagram post of the company.

Ideas come randomly. Every single one that we get and put to use, gets stored somewhere in our minds. Eventually, little ideas come together and make a big one. That is what this photo and its caption are trying to communicate.

We see the small bricks that are about to come together to build a home. Just like that, the company always seeks ideas and creates new products. Kia makes sure to let its Instagram followers know that its movement is supposed to inspire them.

A brand archetype is an important matter when it comes to marketing as it lists important characteristics. So, what archetype does Kia belong to?

We can see a lot of thought put in only one post. We see wisdom and depth that motivate new creations based on the old ones, and we see the desire to teach people new stuff. With that in mind, we can guess by now that Kia’s archetype is the Magician.

What information do we know about the Magician archetype?

Desire: knowledge of the fundamental laws of how the world or universe works
Aim: make dreams come true
Strategy: develop a vision and live it

And now, let’s get into the messaging levels of the magician brand archetype.

Level 1: hunches, extrasensory or synchronistic experiences
Level 2: magical moments and experiences of transformation
Level 3: the experience of flow
Level 4: miracles, moving from vision to manifestation

The Magician may be a suitable identity for the brand if

• the product or service is transformative
• it appeals to New Age consumers or cultural creatives
• it helps to expand or extend consciousness
• it has a spiritual or psychological component
• it is a new and very contemporary product
• it is medium to high priced

Brand Archetypes. Why do we need them in practice?

Being a leader in the industry also requires proper branding and messaging tactics. Here I want to mention the importance of the branding based on the archetypes. Nike says “Just do it”. What do they want to tell us?

They just emphasize the inner heroes inside of us. Here it is, famous brands like Nike and their rivals Adidas have adopted branding tactics based on archetypes.

And it’s up to you to dive in and learn better the following directions. We have written a book “8 steps to a complete archetypal branding” that shows you clear ways to reach your target and conquer their hearts immediately.  Just try archetypal branding on any of the brands you are working on.

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

Strengths

• Product portfolio: with a bunch of brands such as Optima, Sedona, Cadenza, Forte, and a ton of categories in sports cars, passenger cars, sedans, and others, Kia Motors is in great condition with the portfolio that it has to offer.
• Brand value: it is a big deal when your company is included in the top 50 brands all over the world. This company is currently in that position, and, other than that, it has an estimated value of 6.7 USD. 
• Positioning: Other than a great interior and an exterior, these cars are created especially for relieving car experiences that leave the customer with nothing but a happy smile. 
• Hybrid cars: this company has two well-known brands named Cadenza and Optima, what another way to make a smart invention than making a hybrid version of the two cars that people adore worldwide. 

Innovation: 

• making sure that your creation is visually appealing is not the only thing that you have to worry about when thinking of innovations. You have to look at other factors as well. This company has done that. It has constructed electric cars, hydrogen cell-powered cars, and other versions for alternative variants of energy. 

Weaknesses

• Poor reach: unlike its competitors, Kia Motors has failed to reach out to a wide range of consumers. Interestingly enough, its audience is narrowed down to a comparatively small group of people. 
• Brand identity: this is a pretty similar condition as in the last point. Kia is widely known in Korea which is where it was invented. But what about Europe and the USA, and other places where marketing plays a huge role? Surprisingly enough, this company has yet to prove itself to other parts of the World. 
• A shift of focus: It is important to be set on one area and keep moving forward. Changing your branding back and forth may not be the best possible strategy. The latter is the case Kia is dealing with. Initially, fleet sales were the main focus of it. However, after some time, it turned into a retail car brand. 
• Poor advertisements: When investing in sponsorships, companies have to be smart about it. In other words, they should look for the best and most popular events as it will guarantee new customers. The sporting events that Kia puts its promotional budget into are not promising. The reason for that though is that Kia is sadly unseen in the retail market. 

Opportunities

• Market potential: Being provident is also important. While the USA and Europe are big markets for automakers, India and China may soon come to replace them. Therefore, reaching these markets can be a huge source of new opportunities in the near future.  
• Improved infrastructure: There is a big interest in trying to work on roads and their safety, as well as intercity connectivity. This, in sequence, means that driving long distances will be made possible which is only a positive situation for a car company. 
• Change of trends: Mindsets are transforming and we are becoming to be more open-minded about women drivers. The number of working women is increasing making dual-income households possible. Lastly, more urban migration is happening. All of this will ensure for car sales to be impacted greatly. 
• Green cars: Designing environmentally friendly alternative energy vehicles is an area of interest for a ton of reasons. As Kia already has hybrid, green, and environment-friendly models, it is most likely going to face great opportunities.

Threats

• Competition: Let’s not forget that the names Toyota, Nissan, and Honda are recognized as well. Maintaining your reputation when other companies selling products from the same category as you are thriving can get challenging. 
• Regulatory framework: As there are ongoing problems with global warming and the reduction of fossil fuels, problems may arise concerning automaking cost. 

Another important topic that should be touched on is the segmentation strategy of Kia.

But before we do so, let’s watch a short commercial that will help shape an opinion about this topic. 

The video starts with a group of hamsters greeting each other. Then they start rapping. They are basically communicating that you are in charge of your own choice. They show a bunch of equipment, such as a toaster, a cardboard car, and a washing machine. We see them in comparison with a Kia vehicle.

All of them fail different hamsters, but the ones that are in the car are thriving, the roads are smoothly driven in, and the ladies are not hesitant to stare. “You could go with this, you could go with that, you could go with this, this is where it’s at” are the lyrics of the song.

Meaning that even if you pick different options, Kia is the way to go. Judging by the luxurious jewelry and outfits that the hamsters are wearing we can come up with one conclusion.

They are proud of the achievements that they have and they are not ashamed to show them off. Although this looks like a humorous approach, it is a smart way to communicate a brand’s segmentation strategy. With that being said, the segment that Kia chose to target are Breakouts.

So, what do we know about Breakouts?

Lifestyle and Values:

People who belong to this group are pretty set on their goals. They hold a viewpoint that success, money, and fame are what are needed to be fortunate. These people want new achievements and will work towards their goals even if it means sacrificing quality time with loved ones.

Even though being a leader in a group is typical for the segment, working in a group is just as fine. Breakouts are super money-oriented and reward themselves with buying nice stuff. The latter results in not being good at saving up, but being perfect at spending money. 

Another way to show success is appearance, treating themselves with designer brands, and being the center of attention.

Breakouts care about themselves a ton. This segment likes taking risks but also worries about the future. For them getting over gender stereotypes and living a healthy lifestyle is not an area of concern.

Neither is thinking about using environmentally friendly products to not harm the surroundings. Eating whatever they desire without thinking about the long-term effects of what they put in their bodies is typical as well.  

Shopping preferences:

As soon as a newly released item becomes more affordable, Breakouts are buying them. It results in shopping for things just for the sake of having them.

Spending a good amount of money on clothing and trying new brands is easy. However, when it comes to environmentally friendly product usage, they are not willing to go out of their way.

Here are some other interesting facts about the Breakout segment.

They

•  use TV mostly for entertainment purposes
•   will not spend the time to fully go through articles when it comes to reading the news
•   can tolerate listening to the radio
•  like spending time with friends and getting drunk either at their or someone else’s home
• visit either a pub or a club when going out.
• are not interested in are cultural events and activities, technology, or traveling abroad

16 Personalities (why do you need them in your business?)

After understanding the basics of Breakouts behavior you may ask, what kind of brand will be interesting for them? Which hidden and at the same time important things have to be considered? You can find all the answers to these questions in our e-book called “16 Personalities”.  You will also find all the solutions for your marketing problems, which will obviously change your insights about Buyer Persona.

Of course this is one of the 16 personalities and with this book you will discover all of them. With knowledge of each 16 personalities you will confidently find your ideal buyer persona and change your marketing strategy to achieve new levels. 

The book also gives you some other hints for selling your product and negotiating with your clients.

To conclude, Kia is a huge automotive manufacturer that gains a good number of profits in a year. We hope that you got a good idea about the way Kia markets and promotes its brand. If this blog got you interested, be sure to check out the home page of our website for more.