Kia 2001 Annual Report Download - page 7
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Please find page 7 of the 2001 Kia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.After a contraction early in the year, domestic demand for
automobiles in 2001 gradually recovered to eventually
record a 1.4% year-on-year increase at 1,451,000 units.
Demand for RVs decreased slightly, despite an increase in
SUV demand. The fall in minivan sales is attributed to the
weakened economic advantage offered by LPG vehicles in
the domestic market.
Demand for passenger cars increased, particularly for mid-
size and larger models. Mid-sized vehicles recorded a 5.2%
year-on-year increase, reaching 657,000 units. On the back
of the economic recovery, commercial vehicle sales
increased by 3.8% to 384,000 units due to greater demand
for small buses and light trucks.
In the passenger car market, Kia sold 134,000 units to
secure more than 20% of the market. Sales of the Spectra
and Optima were particularly healthy. Sales of commercial
vehicles also increased dramatically to 118,000 units, a
13.5% year on year increase. This increase is mainly attrib-
uted to an intensive effort aimed at making each model the
top-selling vehicle in its class through a focus on quality and
competitiveness. In the RV category the exceptional quality
of the new Carnival continues to boost sales. Kia is also
aggressively promoting of the Carens and the Carstar,
models that maximize the strengths of LPG vehicles and
contribute to expanding the market share for minivans.
Kia is establishing a unique brand image while maximizing
sales via diverse marketing channels. Strategic partnerships
with related firms such as Daum Communications are being
expanded to increase the scope and reach of Kia's cus-
tomer messaging. Increased use of marketing databases is
improving sales efficiency by targeting key market seg-
ments. Kia has also generated greater demand for its prod-
ucts by promoting Kia's excellent safety record as attested
by certified domestic and overseas institutions.
Increased internal competition is bolstering performance
within our sales network. An ongoing campaign aimed at
improving overall sales productivity by 10% through
stronger training and on-site support for all employees is
helping to develop organizational and personnel capabili-
ties. Various PR events encourage consumers to visit deal-
erships, and customer satisfaction is being raised through
customer-oriented service support based on speed, cour-
tesy, precision and trust. We have also reduced sales losses
and promoted sound, profit-oriented management by con-
stantly reducing payment delinquencies.
In 2002, the domestic automobile market is expected to
see 5% growth with demand reaching about 1,525,000
units. This forecast is based on factors including a steady
recovery of the economy, expanded consumption sparked
by upcoming events such as the World Cup, the continuing
growth trend in domestic demand and new model launches
by local manufacturers.
Kia has set a domestic sales goal of 440,000 units, repre-
senting a 6% increase over 2001. Performance will be
aided by the launch of the Sorento, which will be highly
competitive in the SUV market, and increased marketing
activities for the Carnival and the Carens. Kia will also con-
solidate its leadership of the domestic RV and improve com-
petitiveness in both the passenger and commercial vehicle
areas through the introduction of new models.
Improvements in productivity and customer satisfaction
will also be a priority for 2002. An in-house sales qualifica-
tion system has been introduced and Kia is cultivating elite
sales specialists capable of handling every aspect of an
automobile's life cycle, from sales and insurance to mainte-
nance and disposal. Kia will also aim to provide an opti-
mum level of service by maintaining a one-to-one ratio
between sales and maintenance personnel.
Kia is stepping up sports marketing activities by utilizing
the Kia Tigers professional baseball team and developing
programs around the World Cup. The company is also
strengthening joint marketing activities to expand opportu-
nities for customers to learn about Kia and its products.
Database marketing efforts will be improved to better serve
individual customers. Kia's " Noblesse Management
System" already offers benefits to long-term customers to
encourage repeat purchase of Kia cars.
KIA MOTORS
Domestic business activities
Kia's outstanding sales results and a strategy of
brand differentiation have secured the company's number two
position in the Korean market.
10 11
2001
Jimkana Festival New Rio Unveiling Optima Winner Roadshow Sorento Unveiling
2001 KIA MOTORS ANNUAL REPORT