Situation Analysis Report
New Thinking, New Possibilities.
1
Table of Contents
Campaign Developer Overview
3
Company
4
Product
5
Pricing
7
Place
7
Promotion
8
Brand Image
9
Customers
10
Collaborators
14
Distributors
16
Competitors
17
Kia
17
Toyota
18
Nissan
19
Honda
20
Climate: PEST Analysis
21
SWAT Analysis
25
Target Audience
26
Sources
27
2
Campaign Developer Overview
An overseas market was initiated in the 1980s, and Hyundai began to export cars
to Canada in 1983.
Hyundai introduced Hyundai Excel in 1985, and in that same year Hyundai Motor
America was established in Garden Grove California. By 1988 they were able to open a
21 million dollar distribution center in Ontario California where they facilitated parts to a
number of their dealerships. In 1986 the Hyundai Excel was being exported to the U.S
and within a year it became very successful. Due to the success in the U.S Hyundai built
a factory in Bromont, Quebec. The factory was finally completed in 1989, but customers
began to complain about Hyundai cars so the factory had to close down. Despite this
downfall Hyundai was still making huge investments in the U.S. A 15 million dollar
investment established Hyundai Motor Finance Company in Fountain Valley California.
Southern California was a hit location for Hyundai so they opened a North American
headquarters in Fountain Valley, which is an 18-acre site that was a total cost of 18
million.
In 1990 the Scoupe, first sports car, was introduced. Then the next year Hyundai
introduced the first Hyundai designed engine named: the Alpha. After two years Beta was
unveiled, it was the second engine. Hyundai was the first car company in 1991 to provide
car buyers with regularly schedule maintenance and a warranty at no additional cost to
the buyer. In 1994 Hyundai JD power shows that Hyundai showed the highest rate of
improvement in sales satisfaction and customer satisfaction.
In 1998, Hyundai experienced economic decrease from Asian countries, but the
exports helped them out. They took control of their Korean competitors, Kia.
In 2000, Daimler AG took 10% of Hyundai’s stake because they wanted to help increase
the Asian automobile market share. In 2001, Hyundai lowered the stake it had with Kia
motors to 46%.
The Hyundai CEO, Kim Dong-Jin, was charged because he violated campaign
finance laws and participated in managerial negligence in 2004. During that same year,
Kim Dong-Jin was convicted of all charges and was sent to prison for two years.
In 2005, Hyundai Motor Manufacturing Alabama was opened, and produced
300,000 cars each year.
In 2006, Hyundai was once again in legal trouble because two executives were
arrested for Korean bribery. The executives had a flush fund that was funding a lobbyist
in the Korean government. The Flush Fund was created by chairman: Chung Mung-Koo,
3
so he was arrested. The executives had a flush fund that was funding a lobbyist in the
Korean government.
In 2008 Hyundai was recognized 8th in the automobile industry. In 2010, Hyundai
sold more than 3.6 million vehicles all over the world.
The company has defined its vision of being a “ lifetime partner in automobiles
and beyond”. Today the USA headquarters are located in Fountain Valley, California.
*Reference: Lexis-Nexis * MINT GLOBAL
Product
Hyundai has many commercial vehicles:
Aero (large city bus)
Entourage (minivan)
Aero Town (medium bus)
Equus/Centennial (premium sedan)
County (small bus)
Genesis (premium coupe)
e-Mighty (light commercial truck)
Getz (compact sedan)
Super Aero City (bus)
Santa Fe (SUV)
Universe (large coach bus)
Sonata (sedan)
Passenger cars
Tiburon (coupe)
Accent (compact coupe)
Tucson (SUV)
Atos Prime (subcompact)
Tucson (fuel cell)
Avante XD
Trajet (SUV)
Azera (sedan)
Veracruz (SUV)
Elantra (sedan)
Hyundai’s Top Product Line includes
4
1. Compact Accent: 38 mpg, 137 horsepower, 4-cylinder engine, 10 year-100,000
miles warranty
2. Compact Elantra: 38 mpg, 145 horsepower, 4-cylinder engine, luxury car
technology, alloy wheels
3. Elantra Coupe: 34 mpg, 173 horsepower, 4-cylinder engine, driver’s blind spot
mirror
4. Elantra GT: 34 mpg, 173 horsepower, 4-cylinder engine, heated front seats
5. Veloster: 36 mpg, 138 horsepower, 4-cylinder, rear view camera, pandora internet
radio
6. Sedan Sonata: 37 mpg, 185 horsepower, 4-cylinder, hands free smart trunk,
limited time offer lease loyalty cash
7. Azera: 29 mpg, 293 horsepower, V6 engine, hands free smart trunk. navigation
system, rear view camera
8. Sonata Hybrid: advanced battery(electronic), 40 mpg, 199 horsepower, 4-cylinder
9. Tucson: 29 mpg, 164 horsepower, 4-cylinder, limited time offer lease, U-turns
made easy (agility)
10. Santa Fe Sport: 27 mpg, 190 horsepower, 4-cylinder, good agility
11. Santa Fe: 25 mpg, 290 horsepower, V6 engine, 7 airbags,
12. Fuel Cell Tucson 2015: 134 horsepower, 10 minutes of fueling, battery capacity:
60 AH
13. Genesis Coupe: 25 mpg, 348 horsepower, V6 engine, brembo brakes,
14. Genesis: 29 mpg, 311 horsepower, V6 engine, received Kudos for quality, 8speed,
15. Equus: 23 mpg, 429 horsepower, V8 engine, lane departure warning, heated
steering wheel
5
Pricing
2015 Hyundai cars
Compact:
Sedans:
Hybrids:
Crossovers:
Performance/
Premium:
Accent:
$14,745
Sonata:
$21,150
Sonata
Hybrid:$26,000
Tucson: $21,650
Genesis Coupe:
$26,750
Elantra:
$17,250
Azera:
$34,000
Santa Fe Sport:
$24,950
Genesis: $38,000
Elantra
coupe
(2014):
$19,600
Santa Fe:
$30,150
Equus: $61,500
Elantra GT:
$18,800
Tucson Fuel
Cell: 36 month
lease $499/month
$2,999 down
-
Veloster:
$18,000
● *REFERENCE: HYUNDAI OFFICIAL WEBSITE
Place
Hyundai automobiles are sold in 193 countries by 6,000 dealerships and showrooms.
Hyundai automobiles are manufactured in including Korea, the United States, India,
China, Turkey, Czech, Russia, and Brazil.
*MINT GLOBAL
6
Promotion
● “Think about it campaign”: advertising campaign that convinces consumers that
Hyundai offers more than entry level vehicles.
● Groupon: Cut Rate service deal (Chicago Dealers): 2011
● BoostUp: add $500 to customer accounts when they purchase 2015 Hyundai Sonata
through BoostUp
● Superbowl ads 2015: “Dad’s sixth sense” – lots of positive feedback
● FIFA: soccer world cup(BIG event), marketing strategy: car ownership pride.
● #becausefutbol a hashtag started by Hyundai for the world cup had over 17 million
uses on Twitter
● Hyundai had the biggest share of voice among huge brands in the world cup.
● Two weeks into the world cup data showed Hyundai that weekly shopper traffic for
the 2015 Sonata page on Hyundai.com increased 86%
● Hyundai dealerships benefited from the #becausefutbol campaign with a 108%
spike in views of the 2015 Sonata
● Hyundai launched a campaign #livingsmarter which explores the roles of women in
the decision making of cars. The campaign acknowledges women in the
professional world, motherhood, and wives to empower women to live life smarter.
The 2015 Sonata #livingsmarter campaign is meant to honor women and encourage
them to be smarter about how they spend their time, smarter about their health,
smarter about family, smarter about their finance, and smarter about what is
important to them.
● Facebook: promotes new cars, builds community for Hyundai owners and fans.
● Twitter: features ad campaigns. Recent campaign: Grammy Amplified
● Instagram: includes pictures of new Hyundai vehicles
● Youtube: behind the scene videos
● Tumblr
● Vine
7
Brand Image
In 2013 Hyundai Motor Corporation expanded as company, and there was tough
competition. Hyundai’s slogan is “New Thinking. New Possibilities.” Hyundai has
reached the Top 50 global brand list. Hyundai is the very first motor company to create a
hydrogen fuel cell vehicle, which is a grand landmark. The Genesis vehicle is known as a
global luxury car. According to Market line: “the Genesis, completely reborn after seven
years, will make its debut in the global luxury car market, reaffirming Hyundai’s brand
value once again.” Hyundai is growing in the automobile market, and many consumers
are falling for the brand.
Hyundai USA has a strong bond with its customers and the customers have great
pride for the brand overall. Hyundai has 1,782,430 followers on Facebook. Fans/
Followers engage on the social media outlet by liking, commenting or sharing. Recently a
photo of the Genesis vehicle was posted many fans commented. For example, on fan
wrote: “Best car ever!” Another fan stated: “Love my 2 Genesis!!!” This simply shows
that Hyundai as a brand is greatly admired.
On Instagram, Hyundai has 39.9 thousand followers. Many individuals show
great interest towards. Some customers and fans engage on the Instagram page as well. A
picture of the new Veloster was posted and some fans commented. Some comments from
followers included: “Want one so bad”, “I love mine!!”, “such a beautiful car”, “ Would
trade in my Elantra GT any day for the turbo V.”
Hyundai USA is one many more social media platforms like Twitter, Youtube,
and recently joined Snapchat, HyundaiUSA. Many people are engaging with the brand,
and this has expanded the bond between consumers and Hyundai.
Culture
●
Business practices
● In 2007, Hyundai was fined $25 million for violating competition rules.
They put a lot of pressure on car dealers to sell and promote lots of cars. (ABI)
Values
● Hyundai $1 million donation to Martin Luther King Jr. National Memorial
Project.
● New Hispanic Advertising campaign (2006)-diversity
● #Thisisloyalty campaign- college football fans/community (Proquest newsstand)
Goals
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● Get southern California residents interested in the new Hyundai Tucson fuel cell
vehicle. Once southern California residents become aware of this great form of
transportation they can become influencers for new car buyers.
● Overall goal: get individuals to talk about Hyundai overall, and reinvent
Hyundai’s brand image. The anticipating goal is to amplify Hyundai.
Customers
Current Hyundai Consumers
One of the key benefits Hyundai has over their competitors is they have consumer
loyalty. Hyundai’s current consumers are middle-aged individuals who cannot afford
luxury vehicles. Automotive brands are poised to pounce on millennial car buyers who,
while still outnumbered by car-buying Baby Boomers, today represent 40 percent of the
nation’s potential car buying population, according to “Gen Y in the Driver’s Seat,” a
study by consulting firm Deloitte. The key word here is “potential,” because people under
30 are buying cars at a slower rate than at almost any other time in history, says David
Matathia, director-marketing communications at Hyundai. Hyundai has decided to
patiently wait it out with them, but be visible where it counts in the meantime.
● Marketing research has determined that young adults are in steady decline when it
comes to purchasing new vehicles, the baby boomers still hold the lead in the car
buying industry in general.
● Hyundai’s diverse selections for customers range with their case as well.
● Over the past decade Hyundai has been attracting consumers that expect a
Mercedes- Benz or a BMW type of vehicle. Although some consumers are not
content with purchasing a 60,000 for a Hyundai, the company is working their
hardest to make sure that the ownership experience exceeds their customer's
expectations.
● Hyundai 10 year or 100,000 mile warranty is still one of the key aspects that
attract the baby boomer audience.
● Hyundai realized that pushing the bar so high would also necessitate upgrades to
their customer service infrastructure. Since the brand did not have the prestigious
nameplate of one of the established luxury players, they needed to find a way to
convince those buyers that the Equus or any other type of Hyundai was the car for
them.
Demographics
○ Men and women ages 18-34
○ Total population in California is approximately 38,340,074 people
○ Orange County employment in 2013 was 2,018,437: full and part-time
○ Median household income for 2013 was $61,094
○ In 2013, around 690,443 residents in Orange County, made $10,000 or more
○ In 2013, 1,111,997 reported that they drive to work and school ALONE in a
car.
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Psychographics
○ California
○ 68.6% in Family Households: 12,542,460
■ 32.7% of those households have children under 18
■ 49.2% of those households don’t have any children
○ 31.4% in Non-Family Households
■ 24.2% live alone
■ 8.5% are 65 years old and over: 12,542,460
○ 29.9% of Californians are college or graduate school students
○ 25 year olds and over in California: 25,455,010
■ 7.8% have a A.A. Degree
■ 19.4% have a B.A. Degree
■ 11.2% have a Graduate Degree
Market size and growth
○ Over 30 Subsidiaries
○ Almost 10 Equity Held Companies
○ 3 domestic production plants in Ulsan, Chunjoo and Ahsan, and the ROK
○ Head office in Seoul, South Korea
○ US Office in Fountain Valley, California
○ Total Revenue for 2013 was $87,307,636,000
○ Operating Income is $8,315,497,000
○ Net Income is $8,541,834,000
○ Total assets are $133,421,479,000
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○ Cash flow from operations are $1,208,466,000
Benefits
○
○
○
○
Long lasting vehicle
Cost efficient fueling
Environment friendly fueling
Durable and reliable vehicle
Motivation behind purchase
○ Alternative choice of Tucson Cell fueling instead of gasoline
○ Inexpensive fueling cost
○ Environmentally friendly
Decision maker or decision-making unit
○ Hyundai Corporate makes most decisions for vehicles
Retail channel
○ Hyundai Dealerships
Consumer information sources
○ Hyundai Website
○ Hyundai Dealership
Buying process
○ Careful Comparison
■ Buying a vehicle is an important decision for a customer because they,
most likely, going to own it for several years.
■ Customers are going to do careful price and vehicle comparisons.
Frequency of purchase, seasonal factors
○ Only available for lease
Quantity purchased at a time
○ One vehicle
Trends
○ Our target audience focus should come from social media trends; Facebook,
Twitter, Instagram, etc.
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Media Habits, Influencers
○ Word of mouth information concerning car brands and benefits
○ World wide campaigns
■ #becausefutbol
● Campaign based on “fan passion” launched during the Futbol World
Cup 2014
■ The Chop Shop on Walking Dead
● Celebrity influence over consumers.
● Our Television influence is huge for potential consumers in our
target audience.
● Our focus should be on maintaining good public opinion as we
expand our marketing efforts.
○ Online social media sites
■ Facebook
■ Twitter
■ Tumblr
■ Instagram
■ Vine
Online social media sites are the key to not only our target audience
but also putting us in a platform where every single type of
consumer is readily available and willing to look at our products.
○ Online reviews and star rating outlets
■ Yelp
■ Hyundai Website
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Collaborators
Delphi is a global automotive supplier and leader of
automotive technology. It supplies for automotive and
commercial vehicles. It’s headquarters are located in
Gillingham England though they have customer service
plants in over 33 countries. Their company’s goal is to
create products that make cars smarter and safer as well
as more powerful and efficient around the entire world.
● Products:
○ Actuators, Automotive wheels, Industrial Transmissions, Automotive
switches, Suspensions, Engine sensors, Seating components, Power
transmission equipment, Fiber Optic connectors, Automotive brakes,
Automotive axles, Heat exchangers
Media: “ Delphi is a leader in the advancement of fuel cell development, having worked
with U.S. and European customers in SOFC and PEM fuel cell development programs
for several years” (Proquest) Delphi produced an ad campaign “You don’t just repair one
vehicle make. We don’t make parts for just one either.” This campaign was a
commercial set up to advertise Delphi as a multi-car brand supplier. It was a great success
to show that they make parts for all types of cars, including American, European and
Asian made cars. Delphi is the largest automotive supplier in the world and announced its
plan they have been working on since the 1990’s to expand even more. They now supply
for the aftermarket in Paris. "The aftermarket represents an opportunity for Delphi to
utilize our existing global engineering and manufacturing capabilities to realize growth in
a new market. We believe our original equipment quality and broad product portfolio
will provide added value to our aftermarket customers," said Alapont. "Becoming a
strong player in the aftermarket will strengthen Delphi's position as an OEM supplier and
enable the company to partner with automakers to provide products and services
throughout the entire life of a vehicle, which will ultimately benefit the consumer."
Expanding their brand has created a huge success for the company. Today Delphi is one
of the top five aftermarket suppliers worldwide.
Sources: Thomas.net, companies individual websites, international business encyclopedia
AP Technoglass, Alabaster - glass for Santa Fe
AP Technoglass is a supplier that focuses on automotive
glass, flat glass, display, chemicals, and electronics &
energy taking pride in its world-class core technologies
with glass, fluorine chemistry, and other key areas.
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Dongwon Metals, location to be
announced - door frames
Dongwon Metals is a manufacture company located in Korea. At first they only
supplied steel parts but today they cover the steel, auto parts, machine,
information, etc.
Hisan Inc., Scottsboro - brake and fuel lines
Hisan Inc. is owned by Sanoh America now. Sanoh America
manufactures tubular products for the automotive industry.
Our products consist of small diameter tubing with corrosion
resistant coatings, plastic tubing assemblies for fuel tank and engine applications
and brazed products for engine applications. (Website)
PPG Industries, Talladega - glass for Sonata
“PPG is a global manufacturer of paints, coatings, optical
products, specialty materials, glass and fiber glass, and a
Fortune 200 company with headquarters in Pittsburgh and
operations in nearly 70 countries around the world.”
(http://corporate.ppg.com/Our-Company.aspx#sthash.zCBfcXkP.dpuf)
Engelhard
Located in New Jersey, USA they
are a leading supplier in catalysts.
They have been creating automotive catalytic converters since 1970. They are
involved in many huge industries such as the petroleum industry and precious
metals. They have many international subsidiaries with more than half of their
sales coming from outside of the United States.
● Products:
○ Colors, Pigments, Catalysts, Platinum manufacturer, Metal
finishing, Paint coloring services, Vehicle exhaust purifiers
Teksid
Starting in 1917, Teksid is a global leader in
iron manufacturing. In 1987 their sales was over
14
800 billion. Their biggest specialty is automotive pieces and they have eight
plants, 4 in Europe, 1 in south America, 1 in central America and 1 in china and
their revenue is now over 900 billion with 7,000 employees.
● Products:
○ Castings, Engines, Cylinder heads
Arvin Meritor Headquarters being located in Troy
Michigan, USA they are a leading global supplier
drivetrain, braking equipment, mobility solutions for both
commercial vehicles and automotive markets. The goal of
their products for over 100 years has been to offer superior performance,
reliability, and efficiency.
● Products:
○ Vehicle exhaust extraction systems
Distributors
Power Zone Equipment Inc.
● Products
○ Industrial parts and pumps
○ Various types of pumps
■ centrifugal, drilling mud, air operated, single acting, double
acting, rotary and screw pumps
○ Engines, Gearboxes, Generators, Compressors, Electric Motors,
Sheaves, Drills
■ rebuilding, packaging, consulting, design, equipment
locating, machining, repair, pump rental, salt water
disposal, oil/gas refining,
Jamieson Equipment Co. Inc
● Products:
○
Distributor of actuators, aeration
blowers, filters, air compressors, refrigerated dryers, air cylinders, air
valves, bearings, bulk bag handling equipment, concrete batch plants,
conveyors, idlers, return rolls, belt alignment, safety stop and material
flow switches, detectors, gear reducers, motors, hoppers, feeders, impact
beds, pulleys, dust control systems, dry bulk loading equipment, ducting,
hoses, fittings, dust collection systems, water reclaimers, flat tank covers,
indicators, liner material, moisture sensors and controls, motion controls,
post drivers, post pullers, radio remote controls, screw conveyors,
feeders, wheel chocks, derails, rerailers, safety signs, wheel blocks,
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marking tapes, car pullers, hopper gate openers, motion sensing signals,
scales, load cells, silos, slump inspection platforms, ticket delivery
systems, vibrators, air blasters, water meters, heaters, chillers, steam
generators, and safety products
Competitors
Kia
Product
● Bought by Hyundai in 1997, making
South Korea’s largest automaker and
the second-largest Asian automaker
after Toyota. Operating from Ulsan,
South Korea, Hyundai-Kia maintains
the world's largest automobile-manufacturing plant, which has an annual
productive capacity of 1.6 million vehicles.
● The company has been riding the success of the wildly popular mid-size Hyundai
Sonata, the compact Hyundai Elantra, and the compact Kia Forte.
Pricing
● Optima Hybrid $25,990/Soul EV $33,700
● 8.7% Market share
Place
● The rapid growth in sales of both Hyundai and Kia vehicles in the United States
has helped Hyundai achieve the fastest-growing US sales of any automaker.
● Over the five years to 2014, revenue from Hyundai-Kia's US car and automobile
manufacturing segment is expected to grow at an annualized rate of 6.7% to $8.4
billion.
● The company has been riding the success of the wildly popular mid-size Hyundai
Sonata, the compact Hyundai Elantra, and the compact Kia Forte.
Promotion
●
Currently and actively promoting the Trailster on Instagram and Pinterest.
Introducing the new turbocharged hybrid, off roading vehicle. On Instagram they
have anywhere from 326-480 likes for the following hashtags: #CAS15,
#KiaTrailster, #offroad, and #AWD.
Strengths/Weaknesses
● IBISWorld expects Kia will continue to gain US market share during the next five
years.
16
● Kia began offering 10-year or 100,000-mile warranties on all cars sold in the
United States, which is strength for Kia since most automotive companies only
offer a 5-year warranty.
● Kia’s weakness is that they had a reputation for poor quality vehicles in the
United States, and were valued more for their low prices than reliability.
Toyota
Product
● Let’s Go Places.
● Toyota maintains a vast geographical reach,
selling to 170 countries and regions through
more than 500 consolidated subsidiaries and
some 210 affiliated companies.
● Almost 60% of its sales come from Asia
(Japan counts for 48%), while North America generates around 20 of total sales.
Countries in Europe, Africa, the Middle East, Oceania, and Latin America
account for the remainder.
● Toyota was the 4th largest automotive maker by 1970 and the number continues to
grow and expand to different countries.
● Toyota was the first car manufacturer to produce a gas/electric hybrid car to the
public.
Place
●
●
Toyota maintains a vast geographical reach, selling to 170 countries and regions
through more than 500 consolidated subsidiaries and some 210 affiliated
companies.
Almost 60% of its sales come from Asia (Japan counts for 48%), while North
America generates around 20 of total sales. Countries in Europe, Africa, the
Middle East, Oceania, and Latin America account for the remainder.
Pricing
● Mirai $58,325/Prius Plug-in Hybrid $29,990
● Toyota holds one of the top three shares in the market for car manufacturing along
with General Motors and Honda.
● Toyota spent 9.76 billion dollars in research and development during the 2013
fiscal year.
● 18.1% Market share
Promotion
● Marketing campaign on Toyota website, Twitter, and Facebook. “Leave Your
Mark” is the name of the campaign that is raising awareness to support hydrogen
in your location. Targeted mostly towards the Mirai.
17
Strengths/Weaknesses
● Toyota’s greatest strength is that they hold a strong market position in many
different parts of the world not just in the United States.
● One of Toyota’s weaknesses is the advancement of technology that other
competitors are catching up.
● Toyota was the first car manufacturer to produce a gas/electric hybrid car to the
public.
Nissan
Product
● Innovation that Excites
● Last year Nissan’s main strategy was selling
one of the most affordable cars in the market,
selling the Nissan Versa for $9,999.
● Reported earnings for the company in 2010
was over 85 billion dollars.
Pricing
● 6.2% Market share
● Nissan is Japan’s Second largest automotive company.
● During fiscal year 2013 Nissan sold over 5 million vehicles and made over 105
billion dollars. (Earnings increased 20 billion dollars in three years)
● The LEAF, the first mass-market, pure-electric vehicle launched globally, is now
the best-selling EV in history with almost 50% share of the zero-emission
vehicle segment.
● Last year Nissan’s main strategy was selling one of the most affordable cars in
the market, selling the Nissan Versa for $9,999.
Place
● Nissan is Japan’s Second largest automotive company.
Promotion
● Nissan has over 20 social media sites; including Facebook and Twitter, to
communicate with current as well as potential consumers.
Strengths/Weaknesses
18
● One of Nissan’s greatest strengths is their research and development capability.
Nissan has spent 5,689.5 million dollars during the 2013 Fiscal year, and what
they focus is on is the environment, car safety, information technology, and
product development.
● One of the greatest weaknesses the Nissan has working against them is there
recent recalls. For example in 2013 Nissan had to recall almost 200,000 vehicles,
for faulty brake control software. This impacts the company because; to a
consumer it means that they are not inspecting the cars before they are
distributed to the public.
Honda
Product
● Honda became the second largest auto
manufacturer in Japan in 2001.
● Honda became the eighth largest
manufacturer in the world in 2011.
● Helpful Honda Person; Marketing campaign
that was created in 2014 for Honda
consumers.
● The 2015 Accord is the Best Buy of the Year among midsize cars, according to
Kelley Blue Book’s KBB.com
Pricing
● FCX Clarity $600 a month lease only/Fit EV $36,625
● North America was credited for 46.7 percent of the total revenue during the
fiscal year in 2013; North America reached 55,809.6 million, which was a 31.8
percent increase over 2012.
● 7.0% Market share
● Honda is one of the top 3 car manufactures in the world.
Place
● Like Toyota, Honda has a strong market position, which gives them the
opportunity to take risks within the company.
● Honda became the second largest auto manufacturer in Japan in 2001.
19
Promotion
● Honda promotes 10 media websites to promote their vehicles to current and
potential consumers.
● Helpful Honda Person; Marketing campaign that was created in 2014 for Honda
consumers.
Strengths/Weaknesses
● Like Toyota, Honda has a strong market position, which gives them the
opportunity to take risks within the company.
● One of the biggest threats that Honda has is the growing tension of the raw
materials they use to produce their vehicles, relying on these outside sources
slows down production and increases the cost to produce when the raw materials
they are using are more expensive.
Climate: PEST Analysis
Political & Regulatory Environment
The Clean Energy Group has released a report to collaborate on policies to
promote emerging distributed energy storage technologies. They will create both national
and international networks of industry, policy makers, and non-government organizations
to advance new and effective policies for distributed energy storage technologies.
Distributed energy storage is the clean, efficient, fast-scaling solution to many problems:
●
Combine renewables for many generation resources and prevent
overbuilding of fossil fuel.
●
Reduce energy costs when paired with photovoltaic, through load shifting
and the reduction of demand charges.
●
Provides resilient power to keep the lights on when the grid goes down,
which can help avoid expensive grid investment.
California’s self-generation incentive program is the largest portion of the equivalent
annual cost. It is accounted for two-thirds to three-fourths of installations using natural
gasses and a greater share of renewable fuel used. This is because the federal tax credit
of $3,000 is capped at 30% of the capital cost of the unit.
20
The California Fuel Cell Partnership released A Road Map for Fuel Cell Electric
Buses in California: A zero-emission solution for public transit, offering
recommendations to state and federal policy makers about actions they can take to put
fuel-cell to full commercial readiness. In May 2013, the California Energy Commission
adopted the 2013-2014 Investment Update to support development of alternative fuels.
Programs have already been funded across America to kickstart fuel cell research.
CALSTART, based in Pasadena, CA, has been funded $7.7 million the FTA’s National
Fuel Cell Bus Program for the four fuel cell bus projects. This includes $4 million to
develop and demonstrate a battery-dominant fuel cell bus based on a commercial hybrid
platform.
●
Source: US Department of Energy, State of the States: Fuel Cells in
America 2013
Economic Environment
● 86% of United States citizens have a high school diploma, from the Census 20092013
● 28.8% have a Bachelor’s degree or higher
● The median household income as reported in 2013 is $53,046
● 2009-2013, workers from the age of 16 and older spent an average of 25.5 minutes
commuting to work
● Studies show a steady employment rate since 2012.
● CEC was awarded more than $18 million for hydrogen station projects
● Southern California Gas Company established a $1 million innovation fund with Los
Angeles Cleantech Incubator to speed the development of clean technologies in fuelcell
● A San Diego non-profit, J. Craig Venter Institution, received $5 million grant from
the Roddenberry Foundation to support research in fuel-cells
● Source: US Department of Energy, State of the States: Fuel Cells in America 2013
21
● http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/state_of_the_states_2013.p
df
As for fuel cell fueling stations, there are currently eight available and forty-nine
in developments. There is an application in the Apple Store and Google Play Store,
Alternative Fueling Station Locator, that helps locate the nearest fueling station to the
user.
Social/Cultural Environment
In the year 2010 the percentage of new car sales went up by 10% then went down
by half of that in 2014. It is predicted to go even lower in the following years to 1%. As
the economy is still at a downfall, Americans are choosing to purchase used cars.
Car shows are becoming very popular and the attendees are prominently young
males. Hyundai has attended ten auto shows this year, which include: Philadelphia,
Portland, Chicago, Pittsburgh, Cincinnati, Milwaukee, Kansas City, Cleveland,
Minneapolis, Columbus, and have four more shows: Dallas, Atlanta, New York, and
Denver scheduled for this quarter. These car shows have allowed Hyundai to showcase
their newest technology and car models.
Social media applications are the primary source of advertising especially when
targeting millennials. Some popular applications are: Snapchat, Vine, Twitter, Instagram,
and Facebook. Popular social media context are hashtags that allow users to view pictures
or updates about a topic. All competitors have created a variety of hashtags of their
campaigns creating news buzz. Instagram, Twitter and Facebook have become great
vessels for these campaigns to explode in the media.
Vehicle Trends of 2015
●
Newer model cars have built in Wi-Fi
●
Smaller sized SUV’s
●
Aluminum body cars for lighter weight and increase in mpg
●
Self-driving cars
An organization that has contributed to the Fuel-Cell community is the Clean
Energy State Alliance. The CESA published state policymakers with the essential
22
introductory information they need to understand fuel cell technology and the ways in
which it can be commercialized:
● Fuel Cell Technology: A Clean, Reliable Source of Power
● Advancing Stationary Fuel Cells Through State Policies
● Stationary Fuel Cells and Critical Power Applications
● Hydrogen Production & Storage
● Fuel Cells for Supermarkets
Technological Environment
More hybrid cars are being released to be environment friendly. Hybrid cars get
better mileage and don’t use regular gasoline. Hybrid cars are the future as eventually
there will be a gas shortage and in the long run it will be cheaper to pump than regular
gas. Millennials are heavy spenders and they always want the newest and greatest in the
tech industry.
Four Main Types of Electrical Cars
●
Hybrid Electric Vehicle
●
Plug-in Hybrid Electric Vehicle
●
Extended-range Electric Vehicle
●
Battery Electric Vehicle
Low carbon vehicles, clean diesel technology and sustainable mobility are being
seen in new cars. They offer the following advantages for consumers:
●
Improved aerodynamics and reduced rolling drag
●
Green materials (recyclable, recycled, bio-sourced) and new materials
●
New energy sources
●
Integration of low energy-consumption technologies into vehicle functions
23
SWOT Analysis
24
Strengths (Internal)
●
●
●
●
●
Three Hyundai vehicles are the "Highest
Ranked Small Car, Compact Car, and
Midsize Premium Car for Initial Quality"
in the 2014 J.D. Power Initial Quality
Survey.
Vehicles are being sold in 193 countries
Gaining competitive luxury car consumers
Recent promotions through The World
Cup and The Walking Dead has expanded
their range of new customers
High rate customer loyalty
Opportunities (External)
● Social Media Trends
● Fuel Efficiency is becoming a necessity
for the future
● Marketing the fuel cell vehicles can
benefit the way potential clients look at
the company as well.
● Hyundai is the second fastest growing
auto manufacturer.
● Marketing to target audiences like the
viewers of the Walking Dead, will help us
reach a different demographic in potential
consumers.
● Leasing the car to a few select people
gives the company a chance to get
consumer feedback before the vehicle is
available for purchase to the public.
● In 2010, Hyundai & Kia gained some
market share, more consumers favored the
smaller compact cars they had to offer at a
competitive price.
Weakness (Internal)
● Negative brand image from 2006’s
bribery incident
● Bad reputation for the violation
competition rules in 2007
Threats (External)
● Many competitors are producing fuelefficient cars as well.
● Decline in young adults, making new car
purchases
● Toyota will be releasing Mirai, which will
be available for purchase at $58,325
Target Audience
25
● On the go people will have the convenience of charging the fuel cell Tucson in
ten minutes.
● One of the key advantages of buying a Hyundai vehicle is that they are more
affordable than Honda and Toyota.
● Trying to find different audiences;
● Hyundai promotes different cars to different age groups
● Different age groups have different needs and Hyundai has been focusing
their promotional efforts to satisfy different consumer needs.
● Hyundai Motor America is reaching out to Generation X and Y during the
2002 Sprite Liquid Mix Tour.
● Although the concert series were presenting groups from different genres
the demographic was the same.
● Age group attended ranges from 18-35.
■ Hyundai aims at family crowd
● During 2001 Hyundai partnered with the Women's United
Soccer association which targeted young families for their sport
utility vehicles (SUV’s)
■ Hyundai also sponsored the World Cup who targeted mainly the
Hispanic market with great results.
● The Hispanic market focused on the soccer fans that watched
the World Cup, which were big families and were within the
age group of 13-55 on average.
● Not only were they focused on small compact cars but also big
SUV’s to accommodate the bigger families.
■ Hyundai Veloster targets Academy Awards audience in 2012.
● Hyundai mainly picked this audience to feature the new
technology the Veloster featured.
● The Veloster was given to some of the younger people working
on the production, so they can experience the coupe and all the
technology that comes with it.
● The car started off with a retail price of 17,000 targeting the
younger demographic who were just starting off in their careers
who were looking to buy a new car that had the technological
features other major car brands sold for more money.
● 2013 Santa Fe exceeded market expectations and the age for
buyers went down 5 years with the new model.
Sources
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February 2015.
● "Hyundai America." Hyundai America RSS. N.p., n.d. Web. 03 Feb. 2015.
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●
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●
●
●
●
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RAND
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