https://www.engineeringnews.co.za

Market placement crucial to success

POWERING THE A-SEGMENT Instead of marketing the Grand i10 as a B-segment vehicle, Hyundai has retained the vehicle’s A-segment classification

STANLEY ANDERSON It is not our sales people who sell the second or third car to customers, it is the service department

25th July 2014

By: Donna Slater

Features Deputy Editor and Chief Photographer

  

Font size: - +

Categorising different vehicle models in specific segments could be a crucial factor when taking into account how car buyers envisage the new-car market, says Hyundai South Africa.

Hyundai South Africa marketing director Stanley Anderson tells Engineering News that some vehicle brands will keep an existing model in its respective segment and give it a facelift or enhancement, along with a new name, while launching a vastly updated version of the model in an elevated segment as the next progressive step.

For example, a current model in the A-segment can be issued with new headlights and a new bumper, and then marketed as a completely new offering with a different name.

Therefore, research and development that should have been invested in the outdated model is directed towards developing a completely new and different model, which enables the brand to market it as a more premium offering and, subsequently, classify it in a higher segment with a higher price tag.

This practice saves the brand money on the development of new vehicles, as existing infrastructure – such as light clusters, wiring harnesses, interior panels and moulds used in the manufacture of body panels, as well as other compatible components – can be used for production of the renamed model.

Practical Approach
Hyundai adopts a different approach by making clear exactly what it is offering.

“You can see this with our new Grand i10,” he says. Instead of marketing the Grand i10 as a B-segment vehicle, Hyundai has retained the vehicle’s A-segment classification and made it clear that it is simply a bigger and grander version of the existing i10.

The Grand i10 was launched onto the South African market in June and features the same engine as the i10.

The current i10 will remain in production until December 2015; however, Anderson notes that production may likely continue beyond this date, owing to the model being produced in India – a country with a strong demand for compact cars.

Challenges to Industry
Anderson says an alarming number of consumers have ‘over- borrowed’, incurring increased debt – a matter of concern among South African consumers.

The debt issue also affects vehicle sales. “We recently noticed a lot of car buyers who apply for finance and get approved, but fail to accept the offer to purchase,” he says, adding that the probable cause of this is expenditure restraints and tight budgets.

“Only 50% to 60% of the vehicle finance deals that get approved are completed,” he says.

Meanwhile, owing to high-interest rates and a poorly performing gross domestic product, Hyundai forecasts a drop in vehicle sales for this year of between 5% and 8%.

Owing to the unpredictability of South Africa’s economy, coupled with strikes that affect numerous industries, Anderson says it is going to become even more difficult to predict sales figures for the coming few years. “Anything could happen, but I am confident Hyundai has the right plans in place to remain consistent as a leader in the automotive industry.”

After-Sales Key to Success
After-sales service is possibly the greatest driver of the future success of the brand and Hyundai places great emphasis on keeping existing customers happy, states Anderson.

“It is not our salespeople who sell the second or third car to cus- tomers – it is the service department,” he says, adding that if a customer receives poor after-sales service at any point, that customer is highly unlikely to buy that brand again.

“We can make a brand advocate out of a customer simply by the manner in which we handle issues. “We constantly engage with technicians and apprentices to inform them how important their role is in building the Hyundai brand,” Anderson concludes.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

Comments

Latest News

An image of Maltento CEO Dean Smorenburg, Cape Town mayor Geordin Hill-Lewis and Cape Town premier Alan Winde
Maltento aiming to bolster sustainability efforts
18th March 2024 By: Tasneem Bulbulia

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.11 0.157s - 162pq - 2rq
Subscribe Now