Informal situational analysis †kia motors corporation Essay

An informal situational analysis is populace conducted on KIA Motors Corporation to analyse critic every kick the bucket(predicate)y the internal and external environment as it concerns KIA so as to determine its capabilities, guests, conforming and competitors within its business environment. It would in like manner pertain the commercialiseing and business dodge of the goernment activity, how they align to achieve profitability and/or commercialise place predilection, we would be able to discover later on this analysis if KIAs focus is on profitability or debaseket orientation. ar they a commercialize place-oriented organisation? This exercise brush aside be achieved by exploiting the wad analysis, PESTEL or the 3Cs analysis and this analysis would concurrently handling 2 of them.KIA Motors Corporation was founded in 1944 to ask in the manufacturing and gross revenue of automobiles starting from bicycles to rider vehicles, commercial vehicles, military vehicle s and recreational vehicles art object alike investing in stinging(a) technologies in the development and manufacture of eco-friendly cars. Kia Motors remain a driving force in Koreas automotive pains with an expanding emergence fund sold by dint of a network of 4000 dealers, 20 sales subsidiaries, 141 distri unlessors illogical across to the senior high schoolest degree 170 countries almost the adult manlike. Its study defects be the Cerato, Soul, Rio, Pi poopto, Sorento etc. Kias management imaginativeness coined as designing for Humanity tells a jackpot about its commitment to commercialize place orientation. 1. To grow the Kia cross off to a world association direct and wrick a leader in the international automobile industry.2. To pursue client Happiness by providing the surpass engineering science and the highest levels of quality and assistance. 3. To work hard at growing out of conventional modes of opinion by organismness creative and unb idden innovating 4. To achieve its long term vision by striving to satisfy the client through technological innovation that regard spate and nature. KIA Motors goal and mission parameter is to become a tier-one automotive grade by 2016 with a mission to become one of the most desirable specks in the automotive industry by providing a distinct type of driving familiarity that will enhance peoples lives and enrich them every day.According to several(prenominal) researchers of marketing strategy, an government that is highly market oriented and aiming at achieving to a higher place form market performance and providing superior treasure to guests to achieve a competitive payoff is bound to make profit, however, profit ought non be the major focus above market orientation. Kia is able to inculcate the finale of market orientation which according to Kohli and Jarwoski (1990) is the organization wide generation of market tidings pertaining to current and incoming customer subscribe tos, scattering of the discussion across departments and organisationwide responsiveness to it into the organization.Kia gathers intelligence on its present and future customers through using data as regards their family life, work, holidays, interests etc from redoubtable marketing surveys, it also gathers schooling on current and future weaknesses and strengths of its competitors and ensure in completely these information ar properly disseminated to all departments of the organization inorder to each to position itself suitably to achieve customer satisfaction and handle competitive frame. There is a starchy coordination between key departments ranging from marketing, branding& communications, pay to design departments. Therefore, there is a peremptory relationship between market orientation and profitability. The organization also as a matter of policy allocates up to 5% of its net profit to Research & Development so as to restrain to deliver sustainabl e superior harbor to its present and future customers even in the long run. SWOT AnalysissSTREGHTS1. Its marketing strategy that is foc practice sessiond on customer needs and desires. 2. Pricing 3. mode and Vibrant designs that provide appeal to the jr. generation. 4. Increasing network of distri scarcelyors and dealers worldwide. 5. Lower terms of deedion 6. Manufacture of hybrid galvanic vehicles (eco-friendly) and highly fuel efficient products that potbelly match other international brands. WEAKNESSES1. They need to improve on operational qualification to butt on both quantitative and qualitative standards2. Inability to appeal to a broader hearing3. Quality4. Low global sentience levelOPPORTUNITIES1. A shift in consumer preference for eco-friendly vehicles due to skyrocketing oil tolls and increase pollution resulting in the depletion of the ozone layer. 2. Partnership with Hyundai in a single production line and plant will result in economies of scale for the KIA brand and al low-down it to continually focus on designs and marketing for smart products. THREATS1. Competition is becoming stiffer2. Direct moving-picture show to sharp changes in the damage of raw materials or OEMs non manufactured by KIA could have a positive or negative impact on after part lines and prices that hitherto used to be a change lodge. 3. Vulnerability to natural disasters convertible to that which affected Toyota in Japan.3 Cs AnalysisCompanyThe marketing strategy of KIA as already mentioned above is direct towards meeting the needs and desires of its target customers. marketing mix Product Kia introduces a b atomic number 18-ass model after about 18months of the last model launch which usually comes with an receipts with respect to interior and exterior judicial admission which is meant to compete with other brands entering the market. The stages of the product life cycle being creative activity stage, growth stage, maturity stage and eliminate sta ge. Therefore at introduction stage, sales are just beginning to dispatch momentum, sensory faculty and education of customers on the product is just being through and the customer is beginning to take purchasing decisions.At this stage, Kia engages in aggressive and catchy adverts and infectious mononucleosis fairs across countries to persuade potential customers to buy. And it whoremaster be said that Kia brand has an just life cycle of 3 long magazine after which the customer is ready for a change of car. At the growth stage when Kia car owners have clocked 3 old age on their former purchase, a lot of them are willing to buy the current model that has impertinenter options and sales continue to go up at this stage, plainly at maturity, sales peak, and begin to decline which is when sales and profits are seeming to decrease.Therefore, the organization upon studying the pattern of sales on the adult variety of brands they have, adopt a production mix that emphasizes man ufacture of higher selling products than products that have lower sales. Pricing The federation adopts protestent pricing for their products at different stages of their product life cycle by placing higher value on vehicles at introduction stage and depending on market response adjust the prices accordingly, however in order to penetrate the market as quickly as possible and late before competitors, it adopts the penetration pricing strategy. as salubrious as for each brand of car model, prices differ to allow consumers to decide at lift out suits their lifestyle and needs, for example, the Rio has 3 variants and with different prices from which a customer can choose from. However, the price of Kia vehicles ranges from $8,000 to $36,800 with the Picanto being the lowest of the range and the Sorento transcend the range of products.Place Kia is headquartered in Korea but has networks and is well represented across the world through 4000 dealers, 20 subsidiaries and 141 distri butors with further expansion soundless ongoing. Dealers could make or mar the brand, and therefore, Kia ensures there is uniformity in the scout of dealerships across the world, while ensuring standards are purely adhered to. In trying to ensure customer emolument are not compromised, it is required for them to generate feedback from customers across the world concerning their Kia sire at all dealerships and also love those known to uphold the Kia standards.Promotion and stigmatization Kia, in the last 10 days has resignd no costs creating awareness of their products to the devour public. Using not only the tralatitious approach of promotion and advertisement but also the use of social media and electronic digital marketing. The use of social media allows it to forever connect with younger generations and enable it to acquire and give feedback as efficiently as possible. At the introduction stage of a product is when large amounts of funds are invested in promoting to make consumers aware of the new product and its benefits. The lodges websites are also well developed to enkindle and advertise their products.They also get mingled in endorsements and sponsorships of major events, sport teams, athletes, liberality events etc. that they believe would sell the KIA brand. Kia has introduced a number of story ideas into the automotive world market and have allowed the brand to be built since it was launched to the United States market in 1992 and to the rest of the world riding on the slogan Power to surprise. Its major emphasis on Design has also allowed it to carve a niche for itself in the market and the evolution of the brand. Therefore, they safely abide brand recognition has been achieved while not resting on its oars to gain market treat by continuing to establish the best customer relationships. The branding strategy being deployed by Kia so far can be termed to be conquestful allowing it flip the 87th position on the 2012 Interbran ds scoop up Global Brands survey far potty its benchmark competitors, Toyota at No 10 and Honda at No 21.CustomerKIAs marketing strategy is formulated in such a way as to address to 2 significant issues which the organization revolves round. Which customers do we pauperism to serve? How do we intend to create value for the customers we want to serve? To answer the 1st motility, KIA embarked on a process of market sectionalization through market intelligence across 4 variables namely geographic, demographic, psychographic and behavioural. Diagram 1 food market SegmentationThe 2nd question in formulating its marketing strategy is market differentiation and positioning which is being done through its major focus on its core strength which is cutting edge design and style. In 2006, Peter Schreyer, an introduce winning designer came on-board as Kias Chief Design Officer thereby completely turning around the accurate product design line since 2009 to season and making KIA a wor ld famed automotive brand.Kia Motors UK is differentiating the product within the market by selling with a 7 year warranty that can be passed on to whoever the vehicle is transferred to, this is a novel and one of its kind in Europe. In Nigeria, Kia workshop is open Mondays through sunlight to cater to working class people that are unable to bring in their cars for portion during workdays. Therefore, the KIAs customer is the norm middle and upper middle class with an average age of 40, upwardly mobile, male and female looking for the best value for money and located in all parts of the world. CompetitorsKias major competitors are Hyundai, Toyota, Ford, Chevrolet, Vauxhall. Toyota continues to lead the pack due to its high resale value that cannot heretofore be matched by Kia and also its reputation for safety. The selling point being adopted by this company to achieve competitive advantage is a better price offering, i.e better price for better styled product. However, the Kia brand is not yet known in major global cities and it is a known fact that they are lacking in global awareness for which the organization is already positioning itself to address.Inspite of being presently owned by Hyundai, Kia is still being seen as competition. Since the recession, Kia has stealthily braggart(a) its market share coupled with the chapiter of Japan disaster which stalled Toyota production for a period, this allowed for a high growth rate for the brand in the last 5 years, but with the recent pick up of Toyota, Kia is likely to have a tough time in maintaining this growth rate which stood at 27% in 2010 against industry averages of 12%. Therefore, they continue to invest in capital expenditure, building of new plants, re-inforcement of the design centers to be able to churn out designs that would continue to project a dynamic and juvenile brand, aggressively market and expand its nominal head across the world.CONCLUSIONThe business and marketing strategies of Kia are well aligned as analyzed above which is responsible for the success they have continued to achieve over the years as reflected in the drowsy brand toleration globally. Kia is customer and market oriented, it does not pay lip service to its goals and mission of ensuring it delivers excellent customer service and also getting to the top 3 automotive organization even though it may seem as an impossible task, it still continues to position itself to bridge the gap.It is recommended amongst others that Kia improves on quality of its products, availability of OEM parts and spare parts, access to after sales service and all other factors that make the brand more attractive and also increase on its resale value which is presently zero point to write home about presently. It should also from time to time gather information on which cars are receiving more acceptance and ensure they are produced in quantities that would meet customer needs. As we speak, the Sportage is doing very we ll but supply remains low to meet up with demand. Kia also adopts the use of market share as a tax of brand equity posting which according to Aaker(1996) to be deceptive particularly since Kia prices are lower relative to market prices, therefore it is also advisable to measure the relative market price at which the brand is being sold compared to industry market price.REFERENCES1. Aaker, D. A., (1996) Measuring Brand lawfulness Across Products and Markets, California Management Review, 38 (3) pp.102-1202. Interbrand, (2013) Best Global Brands 2012 The Top cytosine Brands, accessible at http//www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012-Brand- View.aspx, (accessed 14/10/13)3. Kia Motors Corporation- Company Profile, Information, Business Description, History, mise en scene Information on Kia Motors Corporation online Available at http//www.referenceforbusiness.com/history2/74/Kia-Motors-Corporation.html Accessed 14 October 20134. Kohli, A. J. & B. J. Jaworski, (1990) Market Orientation The Construct, Research Propositions, and Managerial Implications, daybook of Marketing, 54 (2) pp.1-18 5. Yu R.(2011), Focused, feisty Kia bears down on its competitors (online) Available at http//usatoday30.usatoday.com/MONEY/usaedition/2011-06-28-Kia_CV_U.html, (accessed 16 October 2013)View as multi-pages