Kia 2002 Annual Report Download - page 8

An 8.2% increase in domestic sales was achieved through
effective marketing and improved sales activities.
��� The Noblesse M embership Club provides various customer benefits and boosts the corporate and brand image.
��� The introduction of new models w ith greater customer appeal boosted competitiveness in the RV and
passenger car markets.
��� New vehicle launches w ere linked w ith cultural events, increasing marketing effectiveness.
��� Online services offer information, accept inquiries by e-mail and host a range of promotional events.
New customer management and sales strategies were behind
the steady growth in sales in the Korean market.
Domestic Sales
2002 KIA MO TO RS AN N UAL REPORT
1213
26.5%
2000 2001 2002
410,300 413,942 447,898
600,000
500,000
400,000
300,000
200,000
100,000
Domestic Sales (units) Domestic Market Share (FY 2002)
Source : KAMA (Korea Automobile Manufacturers Association)
Others
26.2%
Kia
26.5%
Hyundai
47.3%
2002 saw Kia place emphasis on improving sales. One initiative designed to achieve that objective w as the Noblesse
M embership Club, w hich w as designed to attract customers for life by offering a range of benefits and promotions to members.
Also w ell received domestically w as the strategy of linking our marketing activities to domestic cultural events, tying the Kia
brand into Korea’s rich cultural heritage. These efforts resulted in an increase of 8.2% in domestic sales.
Kia launched more new models in a single year than ever before in 2002 and a detailed strategy w as developed to raise the
effectiveness of our sales activities. Our dealer support system w as improved and customer programs w ere expanded.
In 2001 Kia launched a campaign stressing safety and technology as a means to promote family unity. This campaign w as
repeated in 2002, continuing efforts to enhance Kia’s brand image. Special tours of the Kw angju plant w ere also offered to
major commercial vehicle customers to expand Kia’s corporate reputation.
Product competitiveness in the passenger car market w as improved w ith the introduction of the New Optima/M agentis (the
Optima Regal in Korea) and the New Rio (Rio SF in Korea), w hile the all-new Sorento and the New Carens increased the compa-
ny’s cachet in the domestic RV market. Successful market penetration by these new models have led to higher sales, better prof-
itability, and an enhanced corporate image.
Kia also adopted unique marketing approaches in 2002. The initial launches of the New Optima/M agentis and the New Rio
w ere held in conjunction w ith a fashion show by international designer Park Ji-w on and an exhibition by renow ned photogra-
pher Kim Joong-man to project a more up-market image. M arketing and PR channels w ere also diversified, sponsoring movie
premieres and carrying joint advertisements on a golf w ebsite w ith Korea’s premier online content provider Daum
Communication. Joint-marketing alliances also helped to boost sales w hile keeping expenditures to a minimum.
Online promotions and competitions w ere held through the company’s homepage to complement new launches and to
increase consumer awareness and acceptance of new models. The Internet w as also used to develop computerized support as
dealerships expanded and to improve customer service by notifying buyers via email or text messaging of new vehicles ready for
pick up, for example.
A stronger domestic marketing approach w ill be applied to passenger cars in 2003, starting w ith the Opirus. A sales target of
510,000 units has been set as Kia aims to occupy 30% of the Korean market in the coming year. Kia is being positioned as a
brand-leader in the competitive Korean RV market and efforts are underw ay to increase our share of the domestic passenger car
and commercial vehicle markets.
A membership of over one million in the Noblesse Club w ill be the basis for a full-fledged customer relationship management
program w hich w ill place top priority on customer satisfaction.