Marketing March 21st

What are some recent consumer behavior trends that are influencing the industry?
-Since the economic downturn in the United States as well as the growing green movement, consumers have been buying more affordable and fuel efficient cars. There has been a recent trend in buying mid-sized sedans because they are the most affordable for the size.

What is the competitive landscape in the USA?
-The main domestic car companies in the United States are Ford and Chrysler. However, these companies are no longer competing solely with each other. They are now competing with a global market that includes companies like Toyota and Volkswagon.

How do companies in this industry differentiate themselves from one another?
-Companies differentiate themselves by have different mission statements as well as different models. Although most cars have the same overall purpose, they vary in accessories and efficiency.

Nissan to Resume Production in Japan

The article talks about what Nissan and all other Japanese based motor-vehicle companies are struggling to reopen their factories and to start sales again.

I think that the Japanese natural disaster will affect the industry a lot more than we would expect. Once we pic which company we want to advertise in our final paper we should consider how the natural disaster affected its sales too.

http://online.wsj.com/article/SB10001424052748704433904576212341267269496.html?mod=WSJ_auto_LeadStoryCollection#articleTabs%3Darticle

Maketing: March 21, 2011

What are some recent consumer behavior trends that are influencing the industry?

It is quite obvious that when a consumer is looking for a product, they want something that in today's economy is fuel efficient, safe, reliable and is of good quality. It should also be stated that people also look into prices. You cannot buy an Aston Martin with $50,000. More recently people have switched to hybrids and cars that are very fuel efficient. The cost of gas is rising so many people are investing in smaller cars, because they take less gas and still get the job done. People have needs when buying cars. Like I said in a previous post people purchase cars based on needs and affordability.

I personally want all the characteristics mentioned above in my car. Design and style are a huge deal for me. Yes I want something as fuel efficient as a hybrid, but I want the style of a mustang. It can often be difficult trying to construct a car like that. For me the most important piece that a car must have is style. I want to look good in my ride.

Sources: http://blogs.chron.com/carsandtrucks/2009/05/what_do_consumers_want.html

http://cars.lovetoknow.com/Worldwide_Automotive_Statistics

March 21st– Marketing

• How do companies in this industry differentiate themselves from one another?


Hyundai motor is currently trying to increase their luxury cars sales in the U.S market. Due to the company image that Hyundai has in the U.S market, which is generally known as a company producing quality cars which is cheap, they have tried to create a new luxury brand(Vehicle of price more than $60,000). Hyundai have evaluated that it would be difficult for them to enter the luxury brand model in the U.S market with their current image. Just like the Lexus of Toyota, it would be the best way for Hyundai to launch a new luxury brand. If Hyundai is likely to produce luxury cars, they would have to compete with other vehicle models from different companies such as, BMW 3series, Benz C-class, Lexus, and Audi A4. In order to survive to from the market, Hyundai would have to differentiate themselves with own unique marketing strategy, and their solution was creating a new luxury brand called Equus. Hyundai is expecting to sell between 2500 and 3000 units this year.

As we can see, Hyundai is focusing very much on their marketing strategy for the market in the U.S. Besides creating a luxury brand, they are also changing their name of the vehicles from its origin name from Korea. Naming marketing seems to control a lot for company’s sales in the market. Moreover, it would be interesting to see whether Equus can stabilize in the market with their expected image as the luxury brand in near future.



http://www.ridelust.com/2011-hyundai-equus-is-a-serious-luxury-sedan-contender/
http://www.aiada.org/news-and-events/first-up-daily-news/1236-hyundais-equus-loaded-for-us
http://www.ohmynews.com/NWS_Web/View/at_pg.aspx?CNTN_CD=A0001136145

Informational interview

sorry for the late post :)


Informational Interview
While searching for an appropriate candidate for my informational interview, I found out that my father has some connections through Hyundai motors. Thanks to his help, it wasn’t difficult for me to find somebody to interview with.

My interviewee was Harry Eum from Hyundai motor company in Washington office. He is a deputy director of strategic department. I have asked him some questions and very gently he has answered me back with sincerity.

I started off with the first question asking him that how he had first entered to this industry.
He replied me back that he has entered Hyundai motor not because he had great interest on automotive industry, but on a very casual incidence. He told me when he was looking for a job, there was a recruiting booth installed at school when he was a senior. He achieved lots of information from the recruiting booth and he also added he felt the company was attracting because they told him he could have a chance to study in the U.S for the MBA programme by the support from the company when being employed. “Hyundai motor encourages employees who want to study more especially abroad like the MBA programmes in the U.S. They support you well enough when you actually decide to continue study, and well of course they expect from you more when returning back to their company” said Eum.

Moreover, I also asked some questions about which I had been curious about. I wanted to hear how Hyundai actually thinks of their brand image here in the U.S. Frankly saying, I have heard that Hyundai motor’s image here in the U.S is relatively cheap and low rated car compared to other foreign vehicles such as vehicles from Japan or Germany. He partially agreed with this opinion however he added some comments contrast to this statement as well. He said that in the past days, around 4-5 years ago, it was true that Hyundai had such an image of the company. However, selling vehicles in low prices compared to the other companies was part of their strategy to enter the market, and nowadays the perception from the market is changing compared to the olden days. It is now beginning to accept the Hyundai product with a fine quality, design and especially great with mileage. He also remarked that there is still a huge potent lying here in the U.S for Hyundai motors which they will try to focus more with new strategy and products to the market.

After his interview, I really felt proud of the company since my hometown company seemed to be doing great in the foreign market. Also I have felt that it would be interesting to see how Hyundai motors would try to input their new full luxury car models into the U.S markets. Overall, it was a pleasure interview and great experience for me as well and I would just hope this informational interview would help me and my teammates for the final paper as well.


Info of the interviewee
HARRY EUM
Deputy Director
Hyundai Motor Company Washington Office
1660 L Street, NW, Suite620, Washington, DC 20036
Phone)202 296 5550
email : hseum@hyundai.com

Marketing: March 21, 2011

The ways that auto companies differentiate themselves from one to another.

There are several ways that some auto industry groups follow to be unique. First, the price of the products as we learned from our book. The person whom I interviewed mentioned that for me. He says that being aggressive and easy to negotiate about prices increase the saling process. This what KIA is dong and it gives them a good market. Second, the use of promotions is really important for automotive customers. Companies provide buyers with free maintenance programs or sometimes even 200, 000 miles like Toyota. Sometimes there are discounts like the discounts on special days. For example, some companies made discounts on Labor day, Thanksgiving, and Independence day. Finally, engineering stimulation is a new method that has many benefits. For example, new devices that are environmentally-friendly to reduce the amount of CO2 in the air.

In my opinion, I think that there is another way auto companies can differentiate from one to another. The way of being timed with technological enhancements. In other words, auto companies should be up to date with any new technological developments. For example, when the iPod was created, some companies, such as BMW, Mercedes, and Infiniti introduced the iPod's cable. This cable connects the iPod with the car's computer. This allows drivers to play their iPods without touching it, just from the screen of the car or from the audio buttons. It also charges the iPod; in addition to that, Infiniti's cars can show pictures of singers in the car's screen if the iPod already has those pictures.

References:

http://www.simutechgroup.com/images/Brochures/Industry/automotive-pdf7792.pdf

Personal experience (informational interview)

Informational Interview

Basher El-fiky

8527 Leesburg Pike, Vienna, VA, 22182 • basher.el-fiky@infinitioftysonscorner.com • 703-663-7021

Director of Financial Services at Infiniti of Tysons Corner

I chose to interview Mr. Basher El-fiky at Infiniti of Tysons Corner. We met at his showroom office on Saturday the 26^th of February, a day on which 11 cars had already been sold. While this number may seem high, it is typical of a small, luxury store at month-end. Also, the pressure to meet quotas is high and aggressive pricing ensues.

I asked Mr. El-fiky about his thoughts about different auto companies which have the potential growth. Although he works at Infiniti, he has a high level of experience in the auto market. He answered my question by saying that Hyundai Company is growing too fast for three reasons.

• First, Hyundai has a great strategy for advertising their products whether on TV or in the internet. They also successfully target the middle class.
• Second, Hyundai is competing with everyone; they have SUVs, economic cars, small vehicles, and luxury ones.
• Third, the price point strategy is interesting. Hyundai provides affordable cars and allows customers to negotiate their prices.

During our conversation, I asked Mr. El-fiky about his job and his responsibilities. He has to complete and organize the bank and DMV paperwork as well as financing for customers, so he said he does a lot of paperwork.

He mentioned that Infiniti provides training programs for new employees. I asked him about the types of training programs Infiniti assigns specifically and how long they take. He replied that Infiniti trains new sales people on greeting customers, negotiating with them, paperwork completion and learning more about Infiniti’s products. He added that two perfect weeks without interruptions would be enough time for initial training. Furthermore, Mr. El-fiky said that the most important skill sets that he would like to find in new candidates are that they are well spoken and outgoing.

I also asked him about Infiniti’s future hiring plans and potential employees. He said that IT people are the market now, and they are important. These jobs are most likely back office jobs. The reason is that customers do not have enough time to visit four or five showrooms to compare different cars; they search online. Therefore, the creation of a virtual store on the website is extremely beneficial because it shows each feature in the car and it makes comparisons with different cars. He said that all of this can be done at home. We also talked about the jobs that his Infiniti office offers, and he said they may be seeking sales people.

Finally, we talked about how auto companies differentiate themselves. Mr. El-fiky said there is no specific way; however, price, inventory and incentives can differentiate companies. An example of incentives would be long maintenance programs or sometimes electronic devices like an iPod. At the end he said, “Customers’ satisfaction is the most important thing for us.”

Informational Interview

For my informational interview I talked with Eve Muldoon, the Sales Manager from Chevy Chase Acura Dealership in Bethesda, Maryland. The interview was very interesting and educational. I learned a lot about her job as a Sales Manager. Ms. Muldoon talked about what her job requirements were. I learned that she is the middleman between the owners of the dealership and the general staff that makes most of the sales. As a Sales Manager, Ms. Muldoon has to make sure that the staff is properly trained to execute a sale and she also has to keep them up to date on their quotas and sales goals. She also mentioned that in order to be successful in her job she has to be very organized due to the fact that there are different appointments and deadlines that need to be followed.
When I asked her about what kind of people she is looking to hire she said that the most important characteristics she is looking for are: being outgoing and able to talk to customers, having a background experience in the sales department, and being very hardworking with good work ethics. She also said that she looks in favor upon the staff that makes their quotas for every deadline.
Overall I had a great experience talking with Eve Muldoon. The lady was really nice and helped me better understand the mechanics behind working in the Automotive Industry. The most important takeaways that I found she emphasized the most were being a hardworking person and having good ethics.

Eve Muldoon
Chevy Chase Acura
7725 Wisconsin Ave

Bethesda, MD 20814
Email: eve.muldoon@chevychasecars.com
Website: http://www.chevychaseacura.com/
Telephone #: 301-657-4000

Informational Interview With The General Manager of DARCARS Chrysler-Jeep-Dodge

For my interview I talked to Paul Tibolla, the general manager of DARCARS Chrysler, Jeep and Dodge of Marlow Heights, MD. His job was interesting because he oversees the whole dealership in that area. He was very nice, but seemed to convey to me that as long as the products sells and it was what the people wanted he wasn't too concerned about what really went into the products. Although he said that he also made a point that the auto industry is a unique industry to work in and that there is so much room for change and innovation. One thing that he did make note of is that it is the people in the industry that make it different. He looks for people to employ that have a strong work ethic. He likes to look for salespeople that have worked in restaurants because it shows that they know how to serve others. He was an extremely nice guy and loves his job and serving people, but it was clear that money is also in important factor in his life and that he enjoyed making it.

Contact:

Paul Tibolla

DARCARS:

Chrysler-Jeep-Dodge

5060 Auth Way

Marlow Heights, MD

Email: ptibolla@DARCARS.com

Website: chryslermh.DARCARS.com

Telephone: 301.423.5111

Fax: 301.541.2386