Kia 2004 Annual Report Download - page 49

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49
KIA Motors_2004 Annual Report
Credit Ratings
In November 2004, Moody's Investors Service raised its credit rating for Kia Motors two notches, from "Ba2" to the investm ent grade "Baa3". This is all the more
meaningful because the credit rating agency is known for its conservative assessments.
Behind the upward revision lying Kia's efforts to upgrade its management and financial soundness, while the synergy effect from the merger with Hyundai Motors
played a part. Kia's increasing share in the European and Chinese markets also helped boost its credit ratings. Despite additional plant construction in China and
Europe, a stable financial status is projected, further strengthening its credit ratings.
The profile of Kia Motors has also been bolstered as its short-term credit rating was revised upward by a domestic agency to top level ("A1”), while the long-term
rating remaining at "AA-". Furthermore, the low er financial costs are likely to result in improved profit margins.
Brand Identity
In January 2005, the Hyundai-Kia Autom otive Group announced the launch of its new global brand m anagem ent strategy. Hyundai and Kia w ill pursue
differentiated brand images as a m eans of boosting the Group's overall market share by targeting very different customers with different lifestyles. Under the new
strategy, Hyundai and Kia will be promoted under separate brand slogans. The Hyundai slogan "Drive your way" is designed to communicate the company's
"refined and confident" brand attributes, while the slogan "The Power to Surprise" is aimed at embodying the "exciting and enabling" values of the Kia brand.
A specialized TFT is dedicated to strategic and company-wide brand enhancement. The tw o automakers also apply consistent brand-enhancing schemes in the
areas of product development, design, marketing, sales, and after-sales service. As the com panies build marketing machines in the US, Europe, China and other
overseas markets, consistency rem ains firm . Following are strategic action plans for the campaign:
▶1st phase (2005~2006: Establish foundations for brand management): Decide on brand direction and build a system for global brand assessment, detailed
implementation to plan.
▶2nd phase (2007~2008: Bolster brand managem ent): Unveil new models reflecting brand strategies, expand global brand strategies to all regions.
• Credit Ratings Trend
Refined & Confident
" Drive your way" (emerge as a leading global brand,
offering customers satisfaction and inspiration)
Balanced modern
Exciting & Enabling
" The Power to Surprise" (continue developing new models
that deeply impress customers and lead dynamic change)
Self-confident, adventurous, and young at heart
Hyundai KIA
Brand Essence
Brand Slogan
Target Customer