The wheels are turning. The cogs of development bring with its advancement in media, communication, and global connections. Our fast-paced world has no dearth of choices. Options are aplenty in all areas with new ones popping up every second. The automobile industry is no less competitive.  It is undeniable that, if any venture is to succeed and place its stronghold in today’s automobile market, one has to stand out of the crowd.

Brand Koncept identified key questions for new entry players like MG Motor and KIA Motors:

India has been somewhat of a confusing ground to bat on with so many European companies withdrawing its mark from the country. Companies like Maruti and Toyota, on the other hand, have found a way to prosper and sustain in the Indian market. A lot of customer perceptions have to do with the way brands are marketed. How many of us actually buy a coat or a phone based on just the specifications? A variety of factors including and not just confined to design, social status symbol, and advertising play a major role in a customer’s buying decisions. Companies with a strong vision formulate strong marketing strategies and have sustained in the Indian market. It is fascinating nevertheless to understand the tricks behind this multi-faceted industry. The article focuses on the brand strategies used by two front-runners of the automobile industry, in an attempt to create awareness, educate and perhaps even influence brand marketing. 

One of the companies in focus, a company that has stood the test of time, and has been revived, is MG Motors.  In the year 1922, Cecil Kimber became the General Manager of Morris Garages. By the year 1930, MG motors began to enter into the car production arena. MG cars did not just sell automobiles, they sold an idea, the British dream; of the freedom of cruising past narrow roads with hedgerows on either side. However, this freedom was short-lived; the years between 1989 – 1972 saw a period of recession in which MG motors had to withdraw from the market, leaving the sports car market uncontested.  In the year 1992, a team of experts from Rover decided to revive the MG Marque, flaunting the values of romanticism, audacity, fearlessness, agility, and openness. Later, in the year 2006, following the downfall of the MG Rover, Chinese automaker Nanjing Automobiles acquired the company. In the very next year, 2007, SAIC Motors, a Chinese automotive company bought Nanjing Automobiles and was renamed as MG Motor UK Limited. From 2016, MG Motor vehicles were imported into the UK, and since then, the company has seen a steady increase in sales. Between the years 2008 and 2017, sales in the UK has seen more than 400% increase. Sales in China were more marked at the same time. 

A company that has changed hands so often now rests in China, with the legacy of being a British-owned automotive company. The MG Marque is a name that has remained in the hearts of people since 1922, which is perhaps why the original name has been retained. However, just a name is not sufficient. It needs to be coupled with major improvements in design and technology to survive in today’s market. With the introduction of the MG series, an innovative brand strategy needed to be planned. Product positioning plays a major role in deciding how its customers perceive the product. MG motors were initially positioned as a sports car, achieving a fine balance between performance and affordability.  MG Motors has a rich legacy, and that needed to be preserved.  It cannot be branded as just another new entry into the scene. It needed to be unique. It attracted the more stylish section of the crowd, mostly single or childless men in their late 20s to early 40s.  Some of the strategies the company adopted helped them attain their prestigious position in the automobile market. MG Motors’ marketing strategy revolved around clear brand positioning, coupled with worldwide coverage. The European markets were enthusiastic about its entry. In a short period of time, MG motors succeeded in emerging victorious. The company focused on customer satisfaction and optimizing sales and profit. Their slogan “The World’s most enjoyable car to drive” helped strike at the heart of their customer base. Their focus was on a global scale, and this helped them achieve popularity in such a short span of time, even after having undergone so many changes since the year 1922. MG Motors’ story sure has certain aspects that companies should take inspiration from. It will be interesting to note the reaction of the Indian market to the introduction of “The World’s most enjoyable car to drive.”

Another global pioneer, Kia Motors also plans to enter into the Indian market in the year 2019.  Kia Motors has discovered their rhythm and found their niche in the global market. In a competitive market such as the UK, they have managed to enter it and do so successfully. Hyundai owns 33.88% share of Kia Motors. The reason for their success can be majorly owing to the ample number of dealers the company has established.  Hyundai Kia has 12 manufacturing assembly plants spread over 165 countries. They are the fourth largest car OEM in the world spanning over 166 dealerships. Every company has a unique selling point, which is a key aspect of brand recognition. Kia Motors’ USP was their competitive prices compared to the other players in the market.  Over the years, however, the company has aimed to change this image of their brand to one with great quality and design. This was done primarily through sports sponsorship deals. Kia announced itself as the official FIFA partner and was sponsored in FIFA 2002. All the way until the year 2022, they have obtained sponsorship deals. Futuristic thinking coupled with sports sponsorship has helped to alter their brand image in favor of great quality and design, as opposed to merely known for competitive pricing. Besides, Kia has also secured sponsorship deals in cricket and tennis. 

Kia’s 7-year warranty on its products further promoted the brand and enhanced the image of great quality and design. Their marketing strategy progressed from raising awareness in their customers to captivating their attention, then stimulating their desire and lastly, calling for action. They influenced customers’ buying choices in this way. Kia’s promotion techniques surpass all mediocre attempts at the same. They focus not only on grabbing the attention of their customers through mass media; advertising, online blogging, banners, etc. They also took several steps ahead with their under-the-line promotion strategies. This included direct customer contact, sales promotions, and sponsorships. Further, Kia motors have an online portal to forge relations with customers online. Kia Motors have also taken steps towards creating awareness about environmental issues. They have a partnership with Trees in Cities, aiming to instill a desire for planting trees in people. These additional steps are necessary for a company to stay ahead of the curve. 

The two companies have their own marketing strategy, and each works in its own way. One is the heir of British heritage, trying to find its spotlight in the Indian market, flaunting ideas of freedom and romanticism. 

The other, whose shares are partly owned by a company which already has a strong foothold in the Indian market, also has a strong USP. Their focus on customer satisfaction and competitive pricing have already won them a prestigious global position. Their brand positioning has successfully portrayed them as a company with great quality and design, which is backed up by the sponsorships and partnerships they have with sports. 
Each one, with its own unique signature, is now testing the Indian waters, about to wade in knee deep. Their experience backed with expertise, in theory, should hold in the Indian market if the company holds its values and ideals close. It will be interesting to witness the future of these two companies in Indian soil in the coming year.