Volume 8, Issue 4, April 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Marketing Strategies of KIA Motors

Runjhun Kumari
Student, School of Business
Galgotia’s University, Greater Noida UP, India

Abstract:- The auto industry has seen tremendous More than 1.4 million vehicles are manufactured and
growth and Kia Motors is one of them. Kia Motors assembled by Kia each year at 14 facilities in 8 countries.
entered the Indian auto market in 2017. Kia Motors More than 3,000 dealers and distributors in 172 countries
wants to create a brand that aims to increase sales and sell and service these automobiles.
market share, not profits. Hyundai Motor Group
company is fully aware of government plans and Over $17 billion a year is brought in by the company's
regulations regarding infrastructure and other 40,000 or so employees. Kia's "home" country of South
requirements for EVs before launching their EVs in Korea is home to three large car assembly plants (Hwasung,
India. Kookhyun shim is both the CEO and MD of Kia Sohari, and Kwangju plants), as well as a world-class R&D
Motors India. In an interview, he explained that Kia's centre with 8,000 specialists and environmental R&D
long-term goal is to establish itself as a household name facilities in Namyang. Future hydrogen fuel cell vehicles
in India.Kia has taken many cues from the industry's and cutting-edge end-of-life recycling technologies are
leading firms.. Seltos is the first product introduced by being investigated at the Institute of Eco-Technology in
Kia Motors. is a sports utility vehicle (SUV) that aims to Seoul. Kia invests 6% of its revenue into R&D every year,
challenge the SUV market in India. In this extremely and the company also maintains facilities in the United
competitive market, Kia has set a reasonable objective. States, Japan, and Germany.
The manufacturing industry has a major impact on
economic growth because it provides so many different A. Present Condition of the Indian Automobile Industry
types of jobs.goods or services. Due to the split of India sold 4,444 commercial vehicles in 2018, making it
Andhra Pradesh, the AP's economic situation, natural the world's fourth largest automaker by volume (399
resources, trade opportunities and allowing foreign million). Cars accounted for 80% of domestic vehicle sales
direct investment in the Indian economy have spurred in FY2019, as shown in Exhibit 1, while motorcycles made
up only 20%. The large middle class and relatively young
the economy and job growth in the state. Due to the
population are likely responsible for their dominance. This
development of Sri City(Chennai-Bangalore Industrial
Corridor), AP Government is seeking Car industry is expanding because car manufacturers
Manufacturing New Industry at Hyderabad-Bangalore increasingly want to sell their products in the world's 4,444
HighwayN.H-44, Penukonda, Ananthapur District. Kia rural markets. India is positive that it can keep its top spot as
Motors (Korea's first automobile company) invested $2 an auto exporter worldwide. The projected CAGR for auto
billionto create 10,000 jobs. Thanks to this business, exports from 2016–2026 is 3.05%, down from FY19’s
Penukonda and its surroundings have undergone a great CAGR of 14.50%. The government's efforts have led
change, andinagriculture, out of agriculture, rental experts to predict that by 2020, India's two- and four-
house, activity work etc. saw an increase in business. wheeler market will have surpassed China's.

I. INTRODUCTION B. KIA Motors Corp

The Korean word Kia has two possible meanings in
With the introduction of new companies and models, English. Ki, a preposition meaning "out," and a suffix
the Indian auto industry has undergone significant meaning "is," are both appropriate here. Therefore, "from
transformation in recent years. With an 8.3 percent increase the East" refers to a company based in East Asia that serves
in sales to 3.99 million units in 2018, Kia Motors became clients worldwide. Kia Motors, founded in May 1944, is the
the seventh largest replica car manufacturer in India and the oldest automaker in Korea. It began producing bicycles and
fourth largest automaker in India. According to data from motorcycles. Hyundai-Kia Motors, a Hyundai Group
the Indian auto market, 80 percent of all domestic vehicle affiliate, has risen to the position of fifth-largest automaker
sales this fiscal year came from the two-wheeled vehicle in the world. It manufactures approximately 1.4 million
sector.This is because of the dramatic rise in both median vehicles per year at its 14 assembly plants located in eight
income and total population. Kia Motors' expanding focus different countries. It generates roughly $17 billion in
on the agricultural market has helped boost the auto sector annual revenues thanks to its network of over 3,000
as a whole. Kia Corporation is the oldest company in Korea, distributors and resellers in 172 countries.
having been established in May 1944. Kia Motors, a
division of the Hyundai-Kia Motors Corporation, is now the
fifth largest automaker in the world, having started out
making bicycles and motorcycles.

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Volume 8, Issue 4, April 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
C. Kia Motors' Debut in India engine, all of which comply with the latest BS VI emissions
In August of 2019, car sales fell by their largest standards. The 1.4-liter turbo petrol engine and the manual
percentage in 20 years. Car sales in the United States were and automatic transmissions are unique to the GT Line.
consistently down from April to September of this year. Seltos is 16 miles away.Gas mileage can be anywhere from
Since announcing their intent to enter the Indian market in 1 to 20, depending on the fuel and the model. The Seltos is a
2016, automaker Kia Motors has been unusually quiet. In 2610mm long, 1800mm wide, and 4315mm tall SUV with
time for the holiday shopping season, the company will seating for 5. The Kia Seltos is equipped with numerous
introduce the Kia Seltos, its first car built specifically for the features, including Kia's UVO connected car technology's
Indian market. There won't be another one until next 10.25-inch touchscreen, ambient lighting with an 8-inch
October. The brand was virtually unknown in India up until head-up display, and a smart air purifier. Sunroofs, leather
about eight months before the launch. Kia, on the other interiors, heated front seats, a Bose sound system with eight
hand, has made some pretty audacious promises, such as the speakers, power drivers seats, and ventilated front seats are
fact that it intends to become one of the top five auto just some of the available options. When it comes to safety,
suppliers in India within the next three years. He has this vehicle has got you covered with its six different
invested $1.1 billion (about Rs 6,900 crore) in a 536-acre airbags, anti-lock brakes, electronic brake-force distribution
luxury manufacturing facility in the Anantapur district of (EBD), and electronic stability control (ESC). It has a blind-
Andhra Pradesh, India. The factory can crank out three view 360-degree camera, parking sensors for the front and
million units per year thanks to its state-of-the-art robotics, back, and a rear-view monitor. Some competitors to the
artificial intelligence (AI) building, and eco-friendly power Seltos include the Nissan Kicks, Maruti Suzuki SCross,
infrastructure. Kia uses an aggressive marketing campaign Hyundai Creta, and Renault Captur. Competitors in this
to shift these vehicles. sector include the MG Hector and the Tata Harrier.There is
also a need for the next-generation Skoda VISION IN SUV.
D. Strategy Product Price Placement Promotion
Kia Motors, based in South Korea, is a Fortune Global F. Caravanide Kiai
500 company that pulls in $1.5 billion in annual revenue. The Carnival MPV is available in three different grades
The company's automobiles have a reputation for being (Prestige, Premium, and Limousine) and has seating for
among the most thrilling and lifelike in the business. seven, eight, or nine people, respectively. Each of the three
Vehicles in this lineup include trucks, cars, SUVs, and even variants is powered by a diesel engine displacing 2.2 litres.
transport and military vehicles. Kia Motors made their debut In the middle row of the limousine model, there are seven
in the Indian market with the release of the Seltos, a midsize comfortable seats. Prestige models are available with either
sport utility vehicle.It plans to take on established players in seven or nine seats. Either seven or eight seats are standard
India's rugged SUV market like Hyundai, Tata Motors Ltd, in the Premium package. There are three colour options:
and Mahindra & Mahindra Ltd. The Chinese SAIC Motor Aurora Black Pearl, Steel Silver, and Glacier White Pearl.
and the French PSA Group are both gearing up to enter this Some of these colours, however, have variations. Unlike the
market, increasing the intensity of competition. Kia plans to rear-wheel-drive InnovaCrysta, the Carnival has front-wheel
release four new models in India over the next two years, drive, a claimed fuel economy of 13.9 kmmpl, and 540 litres
despite fierce competition in the market. Popular Kia models of cargo space.The Carnival's unique features include a
in India right now include the Seltos and the Carnival. Kia wireless phone charger, Android Auto, Apple CarPlay, and
Motors India will compete with other major brands like tri-zone climate control. Other available amenities include a
Maruti Suzuki India and Hyundai India10, which have also rear entertainment screen, power sliding rear doors, and a
announced plans to offer electric vehicles in India by power liftgate. You can get electronic stability control
2020.To get ready for the production of EVs, Kia is also (ESC), a camera, parking sensors (front and rear), anti-lock
investing in a plant in Andhra Pradesh. Beyond the Seltos brakes (ABS) with electronic brake-force distribution
and the Carnival, Kia Motors has ambitious plans to grow its (EBD), and six airbags. The upper trims also include a three-
product line. Kia plans to launch about nine new vehicles in year subscription to UVO Connected Car, a 10.1-inch dual-
India between 2020 and 2021. These will include the Kia touchscreen Harman/Kardon premium audio system, a
Stonic, Kia Sonet, Kia Soul, and Kia Xceed. The nine new ventilated driver's seat, rear entertainment, a 10-way power
models include two sedans, four SUVs, and three driver's seat, wireless chargers, and Smartwatches -
hatchbacks. Connected (Part 5). The Kia Carnival competes with a wide
variety of vehicles, including the Ford Endeavour, Mahindra
E. Seltos KIA Alturas G4, Toyota Innova Crystal, Isuzu MU-X, Honda
The Kia Seltos is offered in two different trim levels: CR-, and Mitsubishi Pajero Sport.
Tech and GT Line. All models in the Tech Line have prices
between 9.89 and 16.34 million. HTE, HTK, HTK+, HTX, G. Pricei:
and HTX+ are the models available. Luxury meets high Kia Motors, based in South Korea, has implemented a
performance in the Grand Tourer (GT) Line, perfect for reasonably priced pricing structure there. Only in the United
extended trips on the open road. States, the United Kingdom, and certain parts of Africa have
export prices remained consistently high. While its brand is
There are a total of three distinct models, and their well-known around the world, its prices tend to be higher
prices range from 1,379 lakh (ex-pan-India showrooms) to than those of competitors like Nissan. After finishing a
1,734 lakh (GTX+). The Seltos is available with a 1.5L massive expansion and modernization of its flagship store
petrol engine, a 1.4L turbo petrol engine, or a 1.5L diesel and other brands, the company intends to increase prices. It's

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Volume 8, Issue 4, April 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
not on par with the other names in the series, though. To with a bang. This is significantly higher than the majority of
prevent price wars between its different brand segments, the businesses that have been operating in India for at least a
company maintains price discrepancies between its various decade.
product lines. Exhibit 6 Kia Motors anticipates annual sales
of $44 billion. After analysing the market, considering I. Promotioni:
customers' willingness and ability to buy Kia Motors India, Kia Motors' use of advertising is a key component of its
knowing the fierce competition from 4,444 competing overall promotional mix strategy. The company's recent
companies, and trying to avoid the right balance between its sponsorships of major sporting events like the Australian
businesses, a pricing strategy is developed. It uses a Open, NBA basketball games, the NBA Women's
competitive pricing strategy, matching or beating the prices Basketball League, FIFA, and the UEFA Cup have
of its competitors. Kia Motors' improved profitability is increased its global profile. Kia Motors' advertising push
based not on the profit maximisation principle of expanding extends across a wide range of mediums, from billboards
business but on the growth of its customer base. Kia's first and TV to newspapers and magazines to digital marketing.
entry into the Indian market, the Seltos, also happens to be In an effort to gain more exposure, the company has
the best-selling vehicle of its class. The Kia Seltos is a partnered with several notable athletes and sports
midsize SUV with a starting price tag of Rs 9.89 lakh and organisations. Kia Motors has established itself as an
going all the way up to Rs 1,729 lakh (ex-showroom).The industry leader by prioritising customer satisfaction over
price of a Kia Carnival starts at 24.95 lakh and goes up to profit. Social media campaigns like "Share #Kia" help
3.395 million. The cost of a diesel-powered Fiesta ranges spread the word about the company's automobiles. Kia has
from 24.95 lakh to 33.95 lakh in India. shown concern for society and the environment on a global
scale through its participation in a variety of CSR activities,
H. Placei such as product donations to the disabled and scholarships
Kia Motors is an international automaker with global for college students. Kia India has probably already received
operations headquartered in Seoul. In addition to its a lot of interest from its target market. An effective sales and
headquarters in South Korea, the firm also maintains 14 marketing campaign combines market-specific narratives
manufacturing and R&D facilities in the United States, with online, offline, and television advertising.
Vietnam, Mexico, China, and Slovakia. Kia Motors America
handles sales and distribution in the United States. Kia has Kia's new ad campaign stars a young celebrity. As the
approximately 4,000 service dealers and distributors spread popularity of Bollywood films grows in India, so does Tiger
across more than 170 countries worldwide to provide Shroff's fan base. India's large mobile consumer base has led
customers with access to sales and maintenance for the to a shift in the country's emphasis towards digital
company's products. More than three million units have platforms. It was crucial to generate interest in the brand
been sold thanks to this robust network. There are 342 sales before formally introducing it to the market. Some of the
offices under the supervision of 20 regional headquarters. websites and social media sites it has utilised include
It's simple to place an order for a Kia Motors vehicle at a Facebook, Instagram, and YouTube. Videos are a great
dealership or through an online auto marketplace. medium for advertising to Indians because of their love of
the format. The success of this advertising campaign can be
With the launch of the Seltos and a highly aggressive seen in the fact that over 6,000 pre-orders were placed on
network strategy that includes a presence in 160 cities and the first day they were offered.
265 contact points, Kia India has entered the Indian market

II. RESULTS AND DISCUSSION

Table 1: What are the sales of Kia cars in India of any Five Months?
MODEL NAME OCT 2022 NOV 2022 DEC 2022 JAN 2023 FEB 2023
SELTOS 9777 9284 5995 10470 8012
CARNIVAL 301 419 88 1003 504
SONET 7614 7834 5772 9261 9836
CARENS 5479 6360 3195 7900 6248
EV6 152 128 134 0 0

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Volume 8, Issue 4, April 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

KIA CAR's Monthly Sale

12000

10000

8000

6000

4000

2000

0
SELTOS CARNIVAL SONET CARENS EV6

Oct-22 Nov-22 Dec-22 Jan-23 Feb-23

.
Table 2: How did you come to know about Kia Motors?
Magazines 20
Newspapers 45
TV Ads 60
Dealers 54
Others 21

Magazines
Newspapers
TV Ads
Dealers

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Volume 8, Issue 4, April 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Table 3: Out of all the other brands, what made you buy a Kia?
Power 53
Design 45
Features 20
Mileage 32
Safety 55
Performance 65
Price 90

Chart Title
Performance

Safety

Mileage

Features

Design

Power

0 10 20 30 40 50 60 70

III. CONCLUSION and no other company comes close to matching it. Direct
customer contact, sales promotion, and sponsorship are all
Kia Motors has set 2019 as the official release date for examples of below-the-line promotion strategies that
its vehicles in India. Hyundai holds a 33.88% stake in Kia complement more traditional forms of marketing such as
Motors15. Despite fierce competition in the English market, advertisements, online blogs, banners, etc. Kia Motors has
the company was able to break through. Their efforts are set up a digital hub to better serve its customers online. Kia
largely responsible for the widespread success of the dealer Motors also plans to prioritise corporate social responsibility
network they've established. There are 12 production lines (CSR) and environmental education. It collaborates with
for Hyundai Kia spread across 165 countries. They have Trees in Cities, an organisation that promotes tree planting
over 166 suppliers, making them the fourth largest original in cities. The company needs to take such extreme action if
equipment manufacturer worldwide. Every business needs a it is to remain competitive.
USP—a way to differentiate itself from competitors. Kia
Motors Corporation separates itself from competition by KIA Motors India has done a preliminary feasibility
offering cheaper prices. However, the long-term objective study. If it stays true to its roots and principles, the company
has been to have people associate this name with innovative, should be able to compete well in India. Intriguing progress
high-quality design. Sporting events are a common venue will be made in the coming year if the company is
for promotional appearances. Kia joined FIFA as an official successful in breaking into the Indian market.
partner and sponsor in 2002.
REFERENCES
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both the cricket and tennis leagues. Kia's seven-year [3.] https://www.indiatoday.in/auto/latest-auto-
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reliable producer of stylish goods. They reworked their 2021-1796796-2021-04-30
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clouded as a result. Kia's marketing strategy is unparalleled, reports/india-passenger-car-market-outlook

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