Kia 2003 Annual Report Download - page 19

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2003 Annual Report 19
Still Going Strong
The US demand was sluggish, heavily affected by an economic slowdown. Despite offering a bold
incentive package, Kia’s total automobile sales amounted to 237,417 units in 2003, only slightly higher
(0.1% ) than in the previous year. While sales decreased by 6.6% in passenger vehicles, sales in the more
profitable RVs segment jumped 11.6% , despite an inventory shortage following strikes in September and
October.
Boosting Brand Value through Product Quality
A survey conducted by J. D. Power and Associates, the American automobile market research firm,
revealed that the repeat buy rate of Kia products has quintupled over the past two years to 50% . Kia
Motors is now ranked 12th in terms of repeat customers. Meanwhile, the New York Times praised the
Sorento in a test drive review: “If the best compliment you can make about a car is that this car can be
seriously considered for purchase, the Sorento seems to be just that car.” These gratifying results were
made possible by a determined effort to improve quality improvement and engage in customer-centered
marketing campaigns.
Stronger Product M ix to Increase M arket Share
US sales are expected to see strong growth into 2004 on the expanded sales of the Cerato and Opirus
and the second-half introduction of the KM, a new-concept SUV. All-out marketing and PR campaigns
are planned to ensure a successful market debut for the Amanti, Cerato and KM, while quality
enhancement efforts will continue unabated. The company will work to improve the brand image still
further by achieving a higher IQS score and stepping up sales support to dealers for optimal
competitiveness.
▶Kia dealers throughout the US enjoyed a brisk
business in 2003, thanks to the improved price-
to-performance level of their products.
▶▶ A nationwide dealers’ convention is held each year
to improve information exchange and secure a
solid position in the US market.
∙
Source Company data
Market Share
1.31%
1.41% 1.42%
01 02 03
Sales Volume
(units)
223,721 237,345 237,471
01 02 03