Reference no: EM132195138

The KIA Motors Corporation, based in South Korea, has 12 manufacturing and assembly plants and subsidiaries in 165 countries around the world. Globally the Hyundai KIA Group is now the fourth largest car company in the world. Kia Motors UK has more than 166 dealerships. It also has plans to grow the network to support the increasing demand. Kia is a relatively new entrant to the UK car market. However, it has become more well known in recent years. Kia does not have the same level of brand heritage in the UK as it does elsewhere in the world. Kia aims to overcome this through its massive ambition and plans for growth in the European market.

Process of planning at the very top of an organization. Senior managers determine the long term aims of the organization. An aim for Kia is to become a major player in the UK car market. A process of research through which customer needs are identified then follows planning. A business then has to establish processes that enable it to satisfy these needs. Kia wants to bring a fresh, fun and dynamic approach to the UK car market. Its marketing strategy supports its objectives with a focus on increasing brand awareness. It aims to emphasize the great design and quality of Kia’s products, while still offering competitive prices.Kia-sportageThe marketing mix comprises of the 4Ps and is a useful way of summarizing the marketing strategy of an organization. Every organization will have a unique marketing mix. Organizations need to create a unique mix of:

•the right product, •sold at the right price, •in the right place, •using the most suitable promotion

For example, the marketing mix for Kia is based around:

•product – good design and quality alongside a high level of customer service, Kia’s unique selling point is its 7-year warranty

•price – competitive prices provide an advantage over competitors

•place – with 166 dealerships there is a large and expanding number of outlets

•promotion – this includes a new sponsorship in cricket and long-term partnerships in football and tennis.

Promotion is about communicating with customers and potential customers. It has a number of purposes, for example:

•to increase awareness – such as the range of vehicles Kia offers

•to raise brand recognition – this is important in an industry with over 30 major players in the UK

•to increase demand – thereby helping to meet the objective of growth in the UK

•to improve brand perception – promotion communicates the fun approach of the Kia brand

•to highlight the superiority of the product – e.g. the high quality and great design of Kia cars.

AIDA

The acronym AIDA is useful when developing a promotional mix. Promotion activities help to:

There are a number of approaches to promotion that are open to organizations. Above-the-line promotions use mass media methods. This type of promotion focuses on advertising to a large audience. It includes print, online media, television and cinema advertising.

As the fourth largest car company in the world, Kia is a big brand. It offers a range of products targeted at different market segments.kia-piccanto Above-the-line activities include adverts in the press. They also produce online banner advertisements, place advertisements on billboards and use their website to meet the needs of their consumers. Recent TV advertising campaigns have included the ‘small yet mighty’ cat for the new Picanto and the ‘future proof’ Kia cee'd, emphasizing the 7 year warranty. TV advertising has also been used to relay the message that Kia is an official FIFA partner.

Making a message memorable to a large audience is not always easy. It is difficult to tailor a promotion to a specific group of consumers through above-the-line promotions. This is because a mass audience with different tastes and needs views it. Above-the-line promotion is also very expensive.

What is the marketing strategy adopted by KIA to compete with other brands offering similar products? Justify your answer by referring to the case above.