Team Assignment #1
Before completing: Discuss with your group how insights from this assignment will help you complete your project. What will you learn? How will it help you evaluate your product’s prospects for the future?
1. What major demographic developments and trends will pose opportunities or threats for this company?
In consumer markets, one of the key forces is demographics. Difference in the size of commercial, industrial or residential customer with respect to both employees and sales are likely to contribute to differences in customer needs. Hyundai Elantra is best described as an affordable transportation. The ideal location for the market is educational and industrial communities. The age group that prefers to buy is normally low to medium income individuals and households such as college students and regular commute employees to use as a town car or as a work car. For a work car customers expect a compact to mid size car with a great fuel economy and safety.
2. What actions has the company taken in response to these developments and trends?
ACTIONS TAKEN: Standardized the engine performance for all models of Elantra. Elantra compact car comes with 4 cylinder, 1.8 L and Small station wagon class Elantra Touring comes with 4 cylinder, 2 L engine.
Toyota thrives for consistency; Honda on innovation, Hyundai is all about aggressiveness and speed – to react to the customer responses. In the year 2010, In the U.S., generous incentives for retail customers and fleet purchases have pushed sales up a strong 7% in a market down 24%. November was a spectacular month: Hyundai brand sales jumped 46% from the previous year, and Kia rose 18%. The price range of Elantra is under $20K and has a standard 4 cylinder, 1.8 L for a compact model. Depending on the preference customer can choose manual or automatic transmission. According to the U.S. Department of Energy, Elantra 2013 model has a fuel economy of 28-30 MPG in city and 39-40 MPG on highway. It offers a combined fuel economy of 33MPG based on a 55% in city and 45% highway. At $3.75 per gallon, fuel costs are estimated at $1700 based on 15,000 miles a year.
SOURCE:The official U.S. government source for fuel economy information: www.fueleconomy.gov
ACTIONS TAKEN: Six Hyundai Models Earn 2012 Insurance Institute for Highway Safety (IIHS) Top Safety Pick Honors.
Hyundai considered safety a top priority. Six Hyundai models, Elantra, Sonata, Genesis, Equus, Tucson and Santa Fe, achieved the 2012 Top Safety Pick honor from the Insurance Institute for Highway Safety (IIHS). This rating indicates that these model vehicles does the best job of protecting people in front, side, rollover, and rear crashes based on “good” ratings in Institute tests. Each of these model vehicles was equipped with Electronic Stability Control (ESC), a crash avoidance feature that significantly reduces crash risk. Elantra also earned a ‘superior’ ranking among midsize cars from the American Council for an Energy-Efficient Economy (ACEEE). The best-scoring vehicles are those that have high fuel economy and meet one of several higher emissions standards.
1. What major developments and trends in consumers’ income, prices (Consumer Price Index), savings, and credit will have an impact on the company?
Hyundai is priced for under $20,000 to lure consumers. Nevertheless, with the increase in the income levels, consumers tend to navigate towards the pricier vehicles such as Honda, Toyota etc. On the contrary, if the income levels reduce, consumers will have a difficulty making car installments.
Hyundai entered the U.S. market in 1986 with a single model, the Excel, which sold for $4,995 -- a price that so captivated bargain-minded Americans that Hyundai set a first-year record by selling 126,000 cars. Its second year in business, Hyundai adopted the slogan "Cars that make sense" and set another...