Marketing Strategy of Hyundai

The first Hyundai automobiles were sold in the United States in 1986 (Rowand, 1988, p. 1). The model initially marketed in the United States, was the Excel, which carried a sticker price of $4,995. This price, in 1986, placed the Excell $742 below the average prices for its lowest priced subcompact competitors, which were (1) the Honda Civic, (2) the Toyota Tercel, (3) the Nissan Stanza, and (4) the Ford Escort.

The target market for the Excel in the United States is comprised of a variety of population segments. First, the Excel targets the automobile consumer who demands a low acquisition price. The reason behind such a demand (conservative in spending habits, low to moderate income levels) is not as significant as is the fact that a low acquisition price is demanded. The second and third characteristics which describe the Excel target market are demands for (1) reliable transportation, and (2) economy of operation. Lastly, the Excel targets the automobile consumer who values economy and reliability over luxury an

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bcompact segment of the American new automobile market. The combined result of these moves by the American and Japanese manufacturers was the development of a significant opportunity for the low priced Excel. Initially, the Excel achieved great success in the United States. Maintenance and reliability problems, coupled with the cost of repairs, however, later soured many American automobile consumers on the Excel (Cole & Nakarmi, 1988, p. 63). Sales of the Excel in the United States dropped sharply in late 1987 and in 1988. Hyundai claims that the problems with the Excel were over stated, and that steps have been initiated to correct the problems. Nevertheless, the company must now overcome public perceptions of unreliability, as it introduces the Sonata to the American market. The Sonata offers the largest interior volume of any car in its class (Gawronski, 1989, p. 4). Its standard 2.4 liter engine is also the most powerful standard engine in its class. The Sonata is the first car to use the new General Electric Xenoy fasica front and rear bumper system (Kenzie, "Hyundai's," 1988, p. 65). The air filled bladders of the system slowly collapse during a minor collision, and the bumper reassumes its shape as the bladder
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Approximate Word count = 1394
Approximate Pages = 6 (250 words per page)

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