Becoming The #4 Globally in Terms of Sales Volumes is not an Easy Task. Not even for The Largest Korean Carmaker. But having Achieved that, how fast can it Grab The #3 Spot?
This summer started on a rather busy note for Land Securities Group. The commercial realty giant has been put in charge of changing the neon light-lit gigantic 1,250 sq. ft.hoarding at Piccadilly Circus (London’s equivalent of Times Square) to an LED screen (which will be ready by October this year). It is a rare event. Those signboards do not change often (the last time it happened was 17 years back!). So what landed Land Securities a new customer willing to pay a massive $3.29 million-a-year for the space? Call it economics – unable to convert failure mystically into cash-flow, Sanyo, the earlier client, was forced to give up the space to a car company, Hyundai Motors. Taking up the billboard is a metaphorical move for the Korean car-maker, and clearly goes beyond catching the attention of the 56 million visitors who flock to Piccadilly, every year.
It’s a move that personifies Hyundai’s attempts to finally break into the top three carmakers of the world. Nobody believed they could do that. Many still don’t. Well, nobody thought the Sanyo billboard would ever be taken over by another company. That’s how metaphorical it can become...
And that’s how a company strives to ensure a perception change within the global audience. For starters, before the turn of the new millennium, the Seoul-based outfit was regarded as just another manufacturer of affordable hatchbacks. No more. Thanks to huge dollars spent on its marketing and advertising strategies, the company has witnessed astounding high growth across many markets over the past two years.
Today, together with its sister company Kia Motors, Hyundai looks all set to break into the top three ranking of the world’s auto market (in sales volume). How soon will that happen? Very, if it continues to grow the way it did in 2010. The company recorded total sales figures of 5.74 million units in CY2010 – a y-o-y growth of 23.97%. It was the highest growth recorded amongst the five largest automakers in the world. While Toyota’s sales rose by 8% (to touch 8.55 million units), GM’s rose by 6% (8.39 million), Volkswagen’s by 13.5% (7.14 million) and Ford’s by 19% (5.31 million). Taking advantage of the streamlining that Ford went through in 2009 & 2010, the Hyundai-Kia combination ran past it to occupy the #4 spot in CY2010. But rising further will be a much bigger challenge.
As per estimates by IHS Global, Hyundai will remain where it is even when 2011 ends. The Korean company, having sold over 2.1 million vehicles during the first four months of 2011, is well on its way to clocking total deliveries of 6.3 million units during CY2011 – a y-o-y rise of 9.76%. On the other hand, Toyota is forecasted to sell 8.6 million units, GM – 8.5 million & VW – 7.5 million. Good news is – when 2011 ends, if all goes well, Hyundai will be much closer to the #3 spot, with the deficit between the Korean and the #3 VW reduced by 1.2 million units.
This summer started on a rather busy note for Land Securities Group. The commercial realty giant has been put in charge of changing the neon light-lit gigantic 1,250 sq. ft.hoarding at Piccadilly Circus (London’s equivalent of Times Square) to an LED screen (which will be ready by October this year). It is a rare event. Those signboards do not change often (the last time it happened was 17 years back!). So what landed Land Securities a new customer willing to pay a massive $3.29 million-a-year for the space? Call it economics – unable to convert failure mystically into cash-flow, Sanyo, the earlier client, was forced to give up the space to a car company, Hyundai Motors. Taking up the billboard is a metaphorical move for the Korean car-maker, and clearly goes beyond catching the attention of the 56 million visitors who flock to Piccadilly, every year.
It’s a move that personifies Hyundai’s attempts to finally break into the top three carmakers of the world. Nobody believed they could do that. Many still don’t. Well, nobody thought the Sanyo billboard would ever be taken over by another company. That’s how metaphorical it can become...
And that’s how a company strives to ensure a perception change within the global audience. For starters, before the turn of the new millennium, the Seoul-based outfit was regarded as just another manufacturer of affordable hatchbacks. No more. Thanks to huge dollars spent on its marketing and advertising strategies, the company has witnessed astounding high growth across many markets over the past two years.
Today, together with its sister company Kia Motors, Hyundai looks all set to break into the top three ranking of the world’s auto market (in sales volume). How soon will that happen? Very, if it continues to grow the way it did in 2010. The company recorded total sales figures of 5.74 million units in CY2010 – a y-o-y growth of 23.97%. It was the highest growth recorded amongst the five largest automakers in the world. While Toyota’s sales rose by 8% (to touch 8.55 million units), GM’s rose by 6% (8.39 million), Volkswagen’s by 13.5% (7.14 million) and Ford’s by 19% (5.31 million). Taking advantage of the streamlining that Ford went through in 2009 & 2010, the Hyundai-Kia combination ran past it to occupy the #4 spot in CY2010. But rising further will be a much bigger challenge.
As per estimates by IHS Global, Hyundai will remain where it is even when 2011 ends. The Korean company, having sold over 2.1 million vehicles during the first four months of 2011, is well on its way to clocking total deliveries of 6.3 million units during CY2011 – a y-o-y rise of 9.76%. On the other hand, Toyota is forecasted to sell 8.6 million units, GM – 8.5 million & VW – 7.5 million. Good news is – when 2011 ends, if all goes well, Hyundai will be much closer to the #3 spot, with the deficit between the Korean and the #3 VW reduced by 1.2 million units.
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Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
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Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
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