Hyundai Strategic Analysis and its Business in South Africa The WritePass Journal

Hyundai Strategic Analysis and its Business in South Africa Introduction Hyundai Strategic Analysis and its Business in South Africa Introduction What is the Hyundai Motor Company (HMC)South Africa and consumer (Target Market)I20 Hyundai car (market offering)Primary data and Secondary dataWhat is the benefit of primary data?The conclusionBibliographyRelated Introduction In recent times, it is sure that the importance of marketing research has increased due to serious competition between companies. That is why there are a plenty of method for information research in order to understand the mind of consumer which can be useful to make the plans and strategy for producing of marketing offering needed by consumer. In addition, through the researching of marketing, the company can build up the priority way to be connected in terms of closes between company and consumer. Therefore, most of companies in the world have tried to concentrate on the marketing area by investing a lot of money to investigate for gaining specific information which affects to increase a profit. In this essay, Firstly, the organisation selected is the company of Hyundai Motor. Secondly, target market is South Africa. (sourse:www.autoblog.com/media/2006/06/hyundai.jpg) What is the Hyundai Motor Company (HMC) Hyundai Motor Company (HMC) is one of the most competitive companies in Korea. From 1960s to the early 1980s, Korean government supported automobile industry through special policies and laws like Automobile Industry Protection Law and A Long term Plan to Promote the Automobile industry in order to boost the economy after the Korean War(1950-1953). While developing continuously with this support, HMC started to export their technique and products to other countries. Their first export was carried out in 1980s in Quebec, Canada. However, their first attempt was unsuccessful closing their plant rather early and struggled to succeed again in India in 1998. Now, HMC is a global company which could survive among other companies in competitive relation: KIA and DAEWOO during economic recession and has continued to develop from both inside and outside of Korea. (A review by Russell et al. 2006) South Africa and consumer (Target Market) According to the table it can be seen below, it show that the growth of rating of economy in South Africa has developed rapidly. It means that for motor company the South African can be consumer marketing area to get a profit.   (Source:   http://en.wikipedia.org/wiki/Economy_of_South_Africa) In addition, South Africa has launched a programme called Black Economy Empowerment, since 1994. This programme is aimed at promote the Black People who have more disadvantages relatively under the circumstance of apartheid economically. Despite some criticism on this programme, it plays a crucial role in developing South Africas economy. To be concrete, it encourages companies being run by black owners, especially the Petroleum and Liquid Fuels (PLF) and Mining industry to achieve economic growth within some years. (A reviewed by Stefano Ponte et al 2007) With this series of economic strategy, South Africa has founded more growing economic system and increasing the black peoples right gradually. From this information, it can be known that the quality of life style of Black People in South Africa among Africa is developing due to policy of government which support Black People. As a result, the people supported by BEE policy might have became middle class who get a confidence economically and the ability to buy products. Briefly, it can be said that this group can be great market if the HMC is aimed at there. I20 Hyundai car (market offering) In mind of consumer, it is sure that the extent of safety of product is main issue. I20 is the motor produced which is one of the most safeties cars in Hyundai motor company. I20 contains of both the condition of safety and modern design including superb interior made from material which feel people comfortable. I20 is the prestigious European National Car Assessment Programme 5 star which proves the quality of safety. In addition, it is cheaper than other motor companies. (I20 may be required hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_BJ_080313131438.html , no date) It will be able to have a competitiveness of product to survive in business market if it is sold in South Africa. However, the Hyundai motor company need to have other market strategy for getting more powerful endurance. One example is that they put specific brand image and soul into I20 by using advertisement and giving people t-shirt drawn the picture and logo of I20 to connect with consumer. In conclusion, it should reach on the target group who became middle class in South Africa who has economical ability because of BEE policy established in time of Nelson Mandela. In addition, it should be focus on group which has educated under parent affected by BEE. They get a sense of selecting the car designed as modern and up to date and elegant. (Source: Http://www.hyundai.com/in/en/Showroom/Flash/SRF/DF_IN_SR_BJ_080313131453) Primary data and Secondary data Generally, there are three types of information the company can obtain: Internal data, Marketing intelligence, and Marketing research. (The view proposed by Philip Kotler 2010 P.126-131).Three kind of information can be divided into two methods: Primary data, and Secondary data. Basically, the primary data is related to marketing research. Secondary data also is connected to marketing intelligence and internal data. When it comes to the principle of marketing, the mean of primary can be classified as ‘it consists of information gathered for the special research plan’. (Philip Kotler 2010 P.131) The secondary data can be defined as ‘it consists of information that already exists somewhere having been collected for another purpose’. Philip Kotler 2010 P.131) Secondary data can be consists of two sorts of source: internal source and external sources. Examples of internal source are company reports, previous company research, salesperson feedback and customer feedback. The examples of external source are the published research, trade organisation, syndicated research and government source. Primary data collection is divided into four types of collection: research approaches, contact methods and sampling plan and research instrument. (Philip Kotler 2010 P.133-142) Firstly, the research approaches consists of four types of researches: observational research, ethnographic research, survey research and experimental research. The observational research can be the technique to collect the primary data by observing the people in term of action and circumstance. The ethnographic research is to use the professional discover for understanding of natural the environment of consumer. The survey of research is generally the most useful skills for knowing of knowledge and attitude and preference. The experimental research is of collection general information. When it comes to contact method in a marketing research, generally, it is linked to the way of online to pick up the thought of consumer. The benefits of contact method by online are that it is cheap and speed. The representati ve examples of contact Methods are Mail and Telephone and personal interviewing. (Philip Kotler 2010 P.135) According to principle of marketing, the definition of sample can be determined as ‘a segment of the population selected for marketing research to represent the population as a whole.’ (Philip Kotler 2010 P.139) In order to use this tactics, first of all, the company should consider who people to be selected for survey are. In addition it should be took into account how many people will be research as well as how the people can be chosen. Furthermore, the research instrument is questionnaires that it is general way by using phone and online. (Philip Kotler 2010 P.139-142) What is the benefit of primary data? Basically, there are advantages and disadvantages both primary data and secondary data. Compared with primary data, there are a number of secondary data so that it can be of use for the company faced with problem, indicating a way for overcoming of problem with developing of the understanding of problem. (Illustrations of the Secondary VS Primary Market research can be found online. allbusiness.com/marketing/market-research/1310-1.html) However, there are some problems in a secondary data up to whether its information is relevant with problem of company or not. Therefore it is necessary for the company to consider the extent of relevant, accurate, up to date and impartial with the problem faced with company. (Philip Kotler 2010 P.133) On the other hand, the main benefit of primary data is to get the information for target group in the time of makeing new products, which affect the company get competitiveness for winning against competitive company. (Illustrations of the Secondary VS Primary Market research can be found online. allbusiness.com/marketing/market-research/1310-1.html) In addition, this method will become the protection of wall for loss of profit by preparing the situation carried out. From the primary data, the company can obtain fulfilling conditions of information in term of accurate, up to date, relevant.   (Source:http://www-rohan.sdsu.edu/~renglish/370/notes/chapt08/index.htm) The conclusion For company both secondary data and primary data should be need. Even though the cost of making of primary data is expensive but help the company to succeed against competitive company. (Illustrations of the Secondary VS Primary Market research can be found online. allbusiness.com/marketing/market-research/1310-1.html) For improving of marketing research skill, firstly, the company has to define what the problem is and the target marketing is. In addition, should   be created new idea what the market place is and the target consumer is as well as considering of which product the consumer want to buy. If company build up the creative strategy for specific target market with consumer, it will be able to succeed. Bibliography RUSSELL D. LANSBURY*, SEUNG-HO KWON** CHUNGSOK SUH (2006) ‘Globalization and Employment Relations in the Korean Auto Industry: The Case of the Hyundai Motor Company in Korea, Canada and India’ Vol. 12, No. 2, 131–147, EBSCO (Online), available at (assessed: April 2006) Stefano Ponte, Simon Roberts and Lance van Sittert (2007) ‘Black Economic Empowerment’, Business and the State in South Vol. 38, Issue 5, p933-955. 23p. EBSCO (Online), (assessed: ep2007) Philip Kotler, Gary Armstrong 2010 Principle of Marketing, Thirteenth Edition, p 126-142.PEARSON allbusiness.com/marketing/market-research/1310-1.html (no date and Author) hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_BJ_080313131438.html (No date and Author) http://www-rohan.sdsu.edu/~renglish/370/notes/chapt08/index.htm Available at: http://en.wikipedia.org/wiki/Economy_of_South_Africa [/level-freee-rstricted]