Hyundai Mo­tors India has reg­is­tered steady growth in ru­ral India over the years. Puneet Anand, GM & Group Head- Mar­ket­ing, Hyundai Mo­tors India talks to Mohd Mus­taquim about the cus­tomised mar­ket­ing strate­gies for ru­ral cus­tomers.

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Santro is a big suc­cess story on ru­ral roads, how has been the growth in ru­ral India over the years, es­pe­cially af­ter Prad­han Mantri Gram Sadak Yo­jana (PMGSY) un­der the Min­istry of Ru­ral De­vel­op­ment, Gov­ern­ment of India?

Prad­han Mantri Gram Sadak Yo­jana (PMGSY) un­der the Min­istry of Ru­ral De­vel­op­ment, Gov­ern­ment of India is one of the in­fra­struc­ture de­vel­op­ment schemes launched in the year 2000 with an ob­jec­tive of pro­vid­ing all weather road con­nec­tiv­ity to un­con­nected ru­ral habi­ta­tions of India. This Ru­ral road con­nec­tiv­ity scheme has mas­sively helped the gov­ern­ment to im­prove the ru­ral econ­omy as well as India’s over­all eco­nomic growth. The in­crease in con­nec­tiv­ity

has led to rise in de­mand for pas­sen­ger ve­hi­cles in mul­ti­ple folds. The Ru­ral mar­kets are key part of Hyundai’s long term strat­egy fo­cus­ing to­wards the cus­tomers in these mar­kets di­rectly to cre­ate an in­ter­face with prod­ucts and of­fers them with best ben­e­fits. Santro was the per­fect ex­am­ple for Hyundai’s suc­cess in these mar­kets. Presently, Hyundai cars, es­pe­cially Eon, Grand i10, Elite i20 and Creta are highly ac­cepted and ap­pre­ci­ated in the ru­ral and semi-ur­ban mar­kets. These brands of­fer low cost of ac­qui­si­tion, low cost of own­er­ship with a strong as­sur­ance of higher re­sale val­ues.

In the en­try level cars, the growth in ru­rAl mAr­kEts hAs sig­nif­i­CAntly been faster than ur­ban mar­kets,

so how does Hyundai see this op­por­tu­nity?

Nearly, two third of India’s to­tal pop­u­la­tion live in ru­ral ar­eas and there has been an enor­mous de­mand base and huge mar­ket po­ten­tial. In last few years, the busi­ness op­por­tu­ni­ties in the ru­ral mar­kets have sub­stan­tially in­creased. The pur­chas­ing power of cus­tomers in ru­ral mar­ket has gone up as the dis­pos­able in­comes are on higher side. Cus­tomers in the ru­ral mar­kets are as­pi­ra­tional how­ever they be­lieve more in the Tried and Trusted brands. As a cus­tomer centric and car­ing brand, Hyundai’s fo­cus is to pen­e­trate in the ru­ral mar­ket, to bring our cus­tomers closer to the brand and es­tab­lish Hyundai as the Pre­ferred Brand of Choice. Hyundai as­pires to be a life­time part­ner in au­to­mo­bile and be­yond by con­stantly adding Bril­liant Mo­ments to the cus­tomers’ lives through ru­ral centric mar­ket­ing ac­tiv­i­ties and high qual­ity prod­ucts backed with Hyundai As­sur­ance.

Con­sid­er­ing the mar­ket size and low in­come group of con­sumers, what of­fer­ings Hyundai has for the ru­ral mar­ket?

The ru­ral mar­ket cus­tomers have a very stable in­come and pos­i­tive cash flow. Var­i­ous ru­ral fo­cused ac­tiv­i­ties are be­ing con­ducted for brand build­ing and sales re­sult­ing into con­ver­sions. Spe­cial cus­tomised schemes for farm­ers, traders and Pan­chayat mem­bers are of­fered for their con­ve­nient buy­ing process. We have tied -up with co­op­er­a­tive banks to fa­cil­i­tate eas­ier fi­nance op­tions. We are en­hanc­ing our reach by in­creas­ing sales and ser­vice net­work in the ru­ral mar­kets. Fur­ther, we also pro­vide testt drives with se­lect fi­nanciers ata their branches or at some promi­nentp lo­ca­tions of re­spec­tive area.a

WhatW are the big­gest chal­lenges do youy see in front of the au­to­mo­bile sec­tor,s par­tic­u­larly for Hyundai in ru­ralr India and how do you tackle them?t

HyundaiH Mo­tor India has a clearc mis­sion to bring world class, in­no­va­tive and pre­mium au­to­mo­bile prod­ucts to the In­dian con­sumers. At Hyundai, we be­lieve that chal­lenges are the op­por­tu­ni­ties in dis­guise. We are in­creas­ing our ru­ral sales out­lets to reach out to the cus­tomers across India to sup­port with wide ser­vice net­work.

How are you build­ing your brand vis­i­bil­ity in the ru­ral mar­ket?

Hyundai is con­tin­u­ously work­ing to pen­e­trate into the ru­ral with var­i­ous ru­ral fo­cused ac­tiv­i­ties that are be­ing con­ducted for the brand build­ing and sales. To start with, the Mini-RSO is a Unique Out­let Model, un­der which a sales and ser­vice point is cre­ated within a to­tal area of 2000 sq ft. A thou­sand square feet of each, sales and ser­vice area is cre­ated to ex­tend sup­port to cus­tomers in in­te­rior ar­eas of RSOs. Se­condly, there are around 260 RSO which are con­nected with our Global Dealer Man­age­ment Sys­tem an MIS sys­tem which fo­cuses to es­tab­lish the con­nec­tiv­ity at all the RSOs. The In­fra­struc­ture Ren­o­va­tion based on Global Dealer Space

The ru­ral mar­ket cus­tomers have a very stable in­come and pos­i­tive cash flow. The Ru­ral cus­tomers have a strong pref­er­ence for tried and tested brands. Var­i­ous ru­ral fo­cused ac­tiv­i­ties are be­ing con­ducted for brand build­ing and sales re­sult­ing into con­ver­sions

Iden­tity (GDSI) is be­ing car­ried out across HMIL RSOs as a sup­port to deal­ers to de­liver Hyundai’s 360 de­gree Mod­ern Pre­mium ex­pe­ri­ence. We are si­mul­ta­ne­ously also em­pha­sis­ing more on hoard­ing cam­paigns. Re­cently, Hyundai has ini­ti­ated Pan India Float Ac­tiv­ity to in­crease brand aware­ness at RSOs and nearby lo­ca­tions. Float is a branded plat­form cre­ated on a car­rier ve­hi­cle to dis­play a par­tic­u­lar prod­uct for pro­mo­tion in semi ur­ban and ru­ral ar­eas. It fo­cuses on in­creas­ing Test Drive Ac­tiv­i­ties at RSO lo­ca­tions to in­crease aware­ness about Hyundai prod­ucts and qual­ity. Work­shop and ground ac­tiv­i­ties with fi­nanciers with high ru­ral pen­e­tra­tion are be­ing con­ducted to fa­cil­i­tate ru­ral cus­tomers in pur­chase. To fa­cil­i­tate ease of pur­chase and ve­hi­cle fi­nance, Hyundai is ty­ing up with Co­op­er­a­tive banks in re­gional mar­kets.

How has been the re­sponse of ru­ral con­sumers over the years?

For last six years, Hyundai sales in ru­ral mar­kets have in­creased. Strong fo­cus with strate­gic roadmap for ru­ral mar­kets has made Hyundai a pre­ferred brand in ru­ral India as well. In 2011, the share of ru­ral sales was 14.5 per­cent. We reg­is­tered a good growth in the share of ru­ral mar­ket as well as in in­creas­ing num­bers. In 2012, the share of ru­ral mar­ket in to­tal sales rose to 17.8 per­cent,

in the years 2013, 2014, 2015 and 2016, the share of ru­ral mar­kets in­creased con­sid­er­ably to 18.7 per­cent, 20.4 per­cent, 21.6 per­cent and 23.5 per­cent respectively. Sim­i­larly, the num­ber of ve­hi­cles sold in ru­ral mar­kets in­creased to 117,4101 in 2016 from 53,849 in 2011.2

WhatW is the USP of Hyundai Mo­torsM India?

Hyundai’sH USP is com­mit­ment to safety,s qual­ity and re­li­a­bil­ity of prod­ucts.p We be­lieve in mak­ing ModernM Pre­mium Cars with in­no­va­tivei tech­nol­ogy, cut­ting edgee de­sign and global qual­ity stan­dards.s A Hyundai car is made withw ut­most care and re­gard for con­sumer and their fam­i­lies. Hyundai Mo­tor India has a wide sale net­work of 866 out­lets pan India and backed by a ser­vice net­work of 1,235 out­lets. Hyundai Mo­tor India has achieved a unique dis­tinc­tion as the top league of Qual­ity Man­u­fac­tur­ers achiev­ing fourth rank in 2015 JD Power Ini­tial Qual­ity Study. Hyundai re­ceived JD Power APEAL Awards for per­for­mance and de­sign for EON, i10, Grand i10, Elite i20/Ac­tive and CRETA. Our 3 mod­els – Eon, i10 and CRETA re­ceived JD Power IQS Award for their top qual­ity in the year 2016.

Hyundai’s USP is com­mit­ment to safety, qual­ity and re­li­a­bil­ity of prod­ucts. We be­lieve in mak­ing Mod­ern Pre­mium Cars with in­no­va­tive tech­nol­ogy, cut­ting edge de­sign and global qual­ity stan­dards. A Hyundai car is made with ut­most care

Post sale ser­vice is the ma­jor com­po­nent for au­to­mo­bile sec­tor, how do you fo­cus on it in ru­ral India?

In or­der to strengthen Hyundai Ser­vice Brand Im­age to win cus­tomer trust and loy­alty, Hyundai Mo­tor India has a very large net­work of 1,235 post-sale ser­vice out­lets across the coun­try. We also pro­vide mod­ern pre­mium ex­pe­ri­ence to our ru­ral cus­tomers through GDSI and Work­shop au­to­ma­tion.

Un­der the “Ex­pe­ri­ence Hyundai” pro­gramme for cus­tomers we have ini­tia­tives like Miles & Smiles Rally, Hyundai Al­ways Around Camps, Ser­vice Camps, low cost own­er­ship cam­paign, Re­fer­ral cam­paign and other cus­tomer meet ac­tiv­i­ties. Hyundai has also launched a first of its kind in­te­grated mo­bile ap­pli­ca­tion for ser­vice of­fer­ing to its cus­tomers. ‘Hyundai Care’ mo­bile App en­sures to as­sist its cus­tomers with all forms of ser­vice sup­port, ser­vice net­work, car ser­vice cal­cu­la­tor and ser­vice ap­point­ment with just a few clicks.

Puneet Anand

Group Head- Mar­ket­ing, Hyundai Mo­tors India

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