Kia 2007 Annual Report Download - page 52

052_ Kia Motors Annual Report 2007
Meanwhile, Kia intends to promote marketing that targets VIPs and women as the number of high-income and female customers are on the rise. To respond
sophisticated and different life style of customers, various marketing activities optimized for target customers will be implemented as people increasingly enjoy
more leisure time and hobbies.
Kia will carry out business promotion advertising campaign, “Design Kia” to enhance brand image and will strengthen sports marketing and star marketing.
Sales promotion plan in 2008 by vehicle type can be broken down as follows:
In the passenger car sector, Kia will focus its sales capacity on new cars such as Morning(Picanto) face-lift model which is classified into mini car taking benefits,
Lotze(Optima) face-lift, compact passenger car ‘TD’(code name). By doing so, we can drive a new momentum in sales.
In the RV segment, we will attract the attention to new car boom by releasing Mohave (Borrego) and small CUV ‘AM’(code name) and focus our efforts on
expanding sales of LPI models(Liquefied Petroleum Injection : advanced LPG models) and publicizing competitiveness of products.
In the area of light commercial vehicles, besides consistently managing relationship with the existing customers, we will work hard to promote sales by seeking new
clients in large numbers and focusing on target customers. In addition, we intend to publicize high quality of products and brand image to increase market share in
the commercial auto market that is expected to show a leap forward this year.
Kia will take a further step to serve customers through various sales promotion events linked to cultural performances including Cinema Day event and customized
events for each region, theme and customer. Additionally, to take full responsibility as a social enterprise, Kia will commit itself to voluntary works and make
donations to society. Kia will work hard to renew its brand image that can bring happiness and vibrancy to customers through high quality products and services.
Overseas Sales
Kia has set its 2008 export goal at 888,200 units (exports from Korea plant, CKD excluded), a 5.4% rise over 2007. It is expected that the industry will face challenges in
market in 2008 due to high oil prices and stiff competition in the industry stemming from stagnant demand. Kia plans to actively respond the market movement
through localization reflecting regional market condition and to expand sales by introducing new cars such as Borrego(Mohave), compact passenger car 'TD'(code
name).
In particular, as part of efforts to strengthen sales capacity, we will pursue qualitative growth by developing competent dealers from metropolitan areas and
replacing or terminating contracts with dealers with poor performance.
Kia plans to enhance brand image through various sports marketing such as EURO 2008, Australian Open and NBA sponsorship and to give young and dynamic
image of Kia to the local customers. Along with this effort, Kia will upgrade brand image by publicizing the cee’d was short-listed for the “2008 European Car of the
Year” (COTY) award and Kia entered the top tier of automakers for the first time in the J.D. Power and Associates 2007 Initial Quality Study(IQS).
In North American market, we will pursue qualitative growth by developing competent dealers or replacing dealers who have poor performance. We will endeavor
to establish sales foundation in preparation for the operation of US plant in 2009.
In third quarter, the new car, Borrego(Mohave), is set to be launched. For a successful launching of the new car, we plan to promote sales in advance by holding
events inviting media officials and bloggers. In addition, we will expand our sales through TV advertisement linked to NBA sponsorship and strengthening financial
program for customers.
In the Western European market, Kia will pursue qualitative growth by developing dealers in big cities and strengthening dealer management system. In addition,
we will step up second hand car remarketing program to provide support for dealers to sell new cars and to improve profitability. In the Eastern European market,
we will focus our sales efforts on Russia with rapidly expanding market, and Ukraine and Kazakhstan that have great growth potential. In the European market, cee’d
manufactured at the Slovakia plant will play a leading role in expanding sales. Starting from the production of 5Dr hatchback in the late 2006 and addition of Wagon
and 3Dr hatchback in 2007, Kia will begin full line-up production of cee’d from 2008.
Management’s Discussion & Analysis