MARKET STUDY OF EXCAVATORS WITH SPECIAL REFERENCE

TO HYUNDAI HEAVY EXCAVATORS

INTRODUCTION
The average person is exposed to many advertising messages per day
through various media channels such as billboards, magazines and newspapers,
television, radio, online etc. As human beings, we have a limited amount of
storage space in which we retain these brands and it is therefore very
important for the future success of brands that the people in charge of managing
them are aware of who the target audience is, what it is in their lives that they
want brands to fulfil, and how the current image, perception or attitude of your
brand compares to that of your competitors brands.
Nowadays, a successful brand can be a determining factor in whether or not
a business is successful (Haig, 2004). The process of branding involves creating
and managing an identity for your brand through which a clear message is
expressed. It is important that the values and images associated with the brand
are clearly identified by the organization, regularly checked to determine
whether they are relevant and consistently portrayed at every touch point with
the consumer. It is vital that the manufacturers / marketers of the brand
understand what the consumers wants and needs are and that they are able to
anticipate what they will be in the future. Smart organizations understand how

important it is to create an emotional link between brands and consumers, and

even form relationships with them, in order to create a situation of

loyal

consumers rather than just satisfied consumers. The purpose of this research
report is to study the brand perception of the corporate Hyundai brand.
This study will provide valuable information for Hyundai as it will inform
them as to whether or not their current brand positioning is aligned with what
the consumer desires, and through uncovering the current brand image profile,
Hyundai will be aware of whether or not action is needed in order to improve
the image.
OBJECTIVES
To determine the brand perception, brand image, attitudes and behavior of
the of the target audience with regard to the corporate Hyundai.
To measure determine the value drivers for the target audience when
purchasing the products or attribute of the product drive the potential

customer to prefer the particular product.

To find out the awareness level of customers on the brand.
To find out the brands with which hyundai has to compete in the market.
Consumer buying behavior with respect to excavators.
Rating or rank of Hyundai excavators.
To interpret the results of the measurements based on analysis.

LITERATURE REVIEW
The evolution of Branding

Manohar David of Philips (Director and Senior Vice President, Philips India
Limited, 1996), a challenge loving, risk taking Brand Manager, who retired after
a 31 year marketing career with Philips, and responsible for its brand success
has to say; In the 1970s, products were made from the manufacturing, rather
than the customer point of view. But with the focus shifting to the consumer,
marketing has assumed a much larger role. Significant parameters in brand
building literature have experienced a dramatic shift in the last decade.
Branding and the role of brands, as traditionally understood, have been subject
to constant review and redefinition. A traditional definition of a typical brand
was: the name, associated with one or more items in the product line, which is
used to identify the source of character of the item(s) (Kotler, 2000). The
American Marketing Associations (AMA) definition of a brand is a name,
term, sign, symbol, or design, or a combination of them, intended to identify the
goods and services of one seller or group of sellers and to differentiate them
from those of competitors. Within this view, whenever a marketer creates a
new name, logo, or symbol for a new product, he or she has created a brand,
(Keller, 2003). He recognizes, however, that brands today are much more than
that. According to these definitions brands had a simple and clear function as
identifiers. Before the shift in focus towards brands and the brand building
process, brands were just another step in the whole process of marketing to sell
products. For a long time, the brand has been treated in an off-hand fashion as a
part of the product, (Urde, 1999). Branding is a major issue in product strategy

(Kotler, 2000). As the brand was only part of the product, the communication
strategy worked towards exposing the brand and creating a brand image. Within
the traditional branding model, the goal was to build a brand image, (Aaker and
Joachimsthaler, 2000); a tactical element that drives short-term results. It is
mentioned that the brand is a signtherefore external-whose function is to
disclose the hidden qualities of a product which are inaccessible to contact
(Kapferer, 1997). The brand served to identify a product and to distinguish it
from competition.
In the journey from product-centric brands to customer-centric brands, many
consumer companies have locked in on a transitional concept segmentspecific brands. While brand Nike focuses on physically active consumers,
brand Disney focuses on parents with small children. This is a significant step in
the right direction and it reflects growing awareness of the power of customers.
A brand differentiates a product in several forms and it can be broadly divided
into two categories- The tangibles (rational) and the intangibles (emotional and
symbolic). Either way, while the product performs its basic functions, the brand
contributes to the differentiation of a product (Keller, 2003). These dimensions
distinguish a brand from its unbranded commodity counterpart and give it
equity which is the sum total of consumers perceptions and feelings about the
products attributes and how they perform, about the brand name and what it
stands for, and about the company associated with the brand. A strong brand
provides consumers multiple access points towards the brand by attracting them

through both functional and emotional attributes (Keller, 2003). The tangible
dimensions that a brand creates are product innovations, high qualities and/or
attractive prices etc. Those are often observable from the products marketing
mix and product performance. The intangible values of a brand will include
those that cannot be quantified. These intangibles go beyond the product level to
become a synaptic process in the brain. In other words, consumers will be able
to respond to this particular brand without the presence of the product (Bedbury,
2002). More importantly, an intimate rapport may be developed between the
consumers and their brands (Roberts, 2004; Fournier, 1998; Muniz and Schau,
2005). The attributes of a branded product add

value for consumers, the

intermediaries and the manufacturers. The most significant contribution of a

strong brand to consumers would be the reduced searching time and cost when
they are confronted with a set of identical products. It helps consumers to
identify and locate a product with less information processing and decision time
because of the expected quality from accumulated brand knowledge
(Pelsmacker et al., 2004). Consumers will be able to develop associations and
assumptions through brand name, package, label etc. A strong brand also offers
high brand credibility: it becomes a signal of the product quality and
performance. This reduces the risks involved in the purchase including the
functional, physical, financial, social, psychological and time risks (Swait and
Erdem, 2004 ; Keller, 2003). Consumers do not only benefit from the functional
values of a brand, they also benefit from the emotional aspects. A strong brand

mixes and blends the product performance and imagery to create a rich, deep,
and complementary set of consumer responses towards the brand (Zamardino
and Goodfellow, 2007). Hence consumers are attracted to more dimensions of a
brand and will be more likely to effectively bond with the brand. Consumers
also use the brand as a means of self-image reflection, symbolic status and an
anchor in this forever changing world. Finally, a brand smoothes consumers
communication process to others and enriches their everyday lives (Holt, 2004;
Keller 2003; Fournier, 1998).
In terms of the branding benefits to intermediaries such as retailers and
wholesalers, a strong brand with high brand recognition and brand awareness
speeds up the stock turnover rate, lowers the selling cost, and leads to higher
sales. Consumers will also be more inclined to (re)purchase in their stores and
spread word of mouth to others. These in turn facilitate the in-store activities
related to the selling of the products with the brand. On the other hand, a strong
brand also implies that the manufacturer supplying the products will be more
committed to the in-store promotions (Webster, 2000). For manufacturers, a
strong brand is a valuable asset to the company. A well-recognized brand serves
as a signal, and it increases the likelihood for consumers to place the product in
their consideration or choice set (Swait and Erdem, 2004). Manufacturers will
also win a reputable name through consumers positive attitudes and evaluation
towards the brand. As discussed previously, manufacturers with strong brands
are more committed to their retailers, and the retailers will in return invest more

effort and resource in maintaining the relationship. Therefore, a strong brand

leads to mutual trust and commitment, and fosters the manufacturer-retailer
relationship (Morgan and Hunt, 1994). Sometimes, the manufacturers may even
gain greater bargaining power over their retailers, and are presented with more
distribution channels (Pelsmacker et al., 2004).
Furthermore, a price premium can be imposed on a strong brand because of the
brands perceived higher quality over the competitors brands (Keller, 2003). A
unique product positioning can be created by a strong brand, which may act as
an entry barrier, such as the retention of intellectual property rights, patents or
trademarks etc (Keller, 2003). This entry barrier can also be established through
consumers repurchase behavior, because it enhances the sales forecast
predictability and secures the demand (Keller, 2003). Moreover, because of
these loyal customers (i.e. implying higher customer retention rate), a company
will find it easier to extend its brand, and lower its marketing costs. Several
studies have proved that a higher customer retention rate will enhance a firms
financial performance and lead to a higher shareholder value (Srivastava, et al.
1998;).
A strong brand also affects a companys financial bottom line directly in case of
a merger or acquisition, because buyers are usually required to pay an extra cost
over the fair value of the firm. This results in a positive goodwill (i.e. intangible
asset) which will be booked on the balance sheets (Elliot and Elliot, 2007).
Overall, a branded product adds value to all parties associated with it. However

it does not automatically create value. Only through adoption of an appropriate

marketing communication strategy will the brand be successful. The key to
branding is that consumers perceive the brand differently as compared to other
brands in the same product category (Keller, 2003). This statement is supported
by (Pennington and Ball, 2007), they define branding as the process in which a
customer or customers, define, label, and seek to purchase a subset of an
otherwise undifferentiated or unbranded product. On the surface it appears that
it is up to the consumers to determine a brands strength, but in fact it is the
branding process that creates a unique mental map in a consumers mind and
guides their behavior (Keller, 2003). In this context, it is vital for organizations
to shift the focus of the consumer relationship from product brands toward a
trusted and credible umbrella brand and further move the implementation of
tactical activities with targeted consumers or segments, rather than at the brand
level.

Brands
Brands play a pivotal role in many companies marketing strategy. They
represent critical resources allowing companies to gain competitive advantage
over their competitors (Hunt, 2000; Srivastava, Shervani, & Fahey, 1998).
Expenses for building and nurturing brands often represent an important part of
a firms overall marketing budget. Consequently, marketing scholars and

practitioners alike show strong interest in concepts and mechanisms that can
potentially increase the value of a companys brand portfolio. Beyond financial
aspects of measuring brand equity, understanding the processes that lead
customers to prefer one brand over others are at the centre of academic research.

Perception
Perception is defined as a process through which individuals are exposed to
information, attend to the information, and comprehend the information
(Mowen, 1995). Understanding perception and the factors determining how
consumers view products and services is central to effective marketing
(Berkman, Lindquist, and Sirgy, 1996). Schiffman and Kanuk (1994) stated
about consumer perception saying " as diverse individuals, we all tend to see the
world in our own special ways. "Reality" to an individual is merely that

individual's perception of what is "out there"- of what has taken place.

Individuals act and react on the basis of their perceptions, not on the basis of
objective reality. Thus, to the marketer, consumers' perceptions are much more
important than their knowledge of objective reality. For if one thinks about it,
it's not what actually is so, but what consumers think is so that affects their
actions, their buying habits, their leisure habits, and so forth. And because
individuals make decisions and take actions based on what they perceive to be
reality, it is important that marketers understand the whole notion of perception
and its related concepts so they can more readily determine what factors
influence consumer to buy.
Brand perception
A number of studies focus on creating frameworks to understand the key
components of brand perceptions, including Keller (1993), Aaker (1991) and
Plummer (1985) (Simms and Trott, 2006). Brand perception is consumers
ability to identify the brand under different Sadeghi et al. 12027 conditions, as
reflected by their brand recognition or recall performance. Brand recall refers to
consumers ability to retrieve the brand from the memory. Brand building has
been around for centuries as a means to distinguish the goods of one producer
from those of another. The earliest signs of branding in Europe were the
medieval guilds requirement that craftspeople put trademarks on their products
to protect themselves and consumers against inferior quality. In the fine arts,

branding began with artists signing their works. Brands today play a number of
important roles that improve consumers lives and enhance the financial value
of firms (Wonglorsaichon and Sathainrapabayut, 2008).

Schiffinan and Kanuk (1994) stated about consumer perception saying " as
diverse individuals, we all tend to see the world in our own special ways.
"Reality" to an individual is merely that individual's perception of what is "out
there"- of what has taken place. Individuals act and react on the basis of their
perceptions, not on the basis of objective reality. Thus, to the marketer,
consumers' perceptions are much more important than their knowledge of
objective reality. For if one thinks about it, it's not what actually is so, but what
consumers think is so that affects their actions, their buying habits, their leisure
habits, and so forth. And because individuals make decisions and take actions
based on what they perceive to be reality, it is important that marketers
understand the whole notion of perception and its related concepts so they can
more readily determine what factors influence consumer to buy."
Zeithaml (1988) pointed out that perceived value is very subjective and distinct
and it is different from one customer to another. After consolidating four
consumers' expressions of value, she defined perceived value as a customers
overall assessment of the utility of a product based on the perception of what is
received and what is given. A customer might evaluate the value dimension of

the same product differently at different occasions. To illustrate; a customer may

regard price as the most important criteria at the time of making decision to
purchase a product. Subsequently, when he/she is faced with any problem with
regards to the product, he/she might consider that customer service is the most
important factor that will affect his/her satisfaction/dissatisfaction.
In service marketing, the value concept appears quite frequently, but any clear
definition cannot be found until we turn to the literature on pricing. Monroe
(1991) defined customer -perceived value as the ratio between perceived
benefits and perceived sacrifice. The perceived sacrifice was not solely referred
to the purchase price but also includes all other possible costs that the customer
might face in the purchasing process. Consider an example in which a customer
intends to obtain a telephone service. Besides having to pay for the first month
rental plus a deposit, he must also consider the cost of transportation, internal
wiring, waiting time, repairs and maintenance, risk of failure and/or poor
performance. The perceived benefits are a combination of physical attributes,
service attributes and technical support available in relation to the particular use
of the product, as well as the purchase price and other indicators of perceived
quality. Thus, perceived value is the results or benefits customers receive in
relation to total costs (which include the price paid plus other costs associated
with the purchase). In simple terms, value is the difference between perceived
benefits and costs. However, what constitutes value appears to be highly

personal, idiosyncratic, and may vary widely from one customer to another
(Holbrook, 1994; Zenithal, 1988). Research evidence suggests that customer
who perceive that they received value for money are more satisfied than
customer who do not perceive they received "value for money" (Zeithaml,
1988). Perceived value is the results or benefits customers receive in relation to
total costs (which include the price paid plus other costs associated with the
purchase). In simple terms, value is the difference between perceived benefits
and costs. However, what constitutes value appears to be highly personal,
idiosyncratic, and may vary widely from one customer to another (Holbrook,
1994; Zeithaml, 1988). Research evidence suggests that customers who
perceive that they received "value for money" are more satisfied than customers
who do not perceive they received value for money" (Zeithaml, 1988). Based
on this review and with regards to perceived price and perceived value
constructs. However, Anderson, Fornell & Lehman (1996), while studying the
relationship between customer satisfaction, market share and profitability,
proposed that value will has a direct impact on how satisfied customers are with
suppliers. Similarly, Fornell, Johnson, Anderson, Cha & Bryant (1996) have
used the construct perceived value as the perceived level of service quality
relative to the price paid. They also suggested that perceived value is one of the
customer satisfaction determinants and the antecedents of perceived value are
perceived quality and customer satisfaction. To provide competitive service
value to customers, a company must have a thorough understanding on the

customers need and the activities that constitute the customers value chain. The
customer value chain represents the sequence of activities performed by the
individual customer with various members in which the product or service is
appropriate. For example, a telephone service may be considered as a basic
input for the customers value chain for local and long-distance communication
device. Perhaps, some of the customer regards the telephone service as a
facsimile medium or an alternative to Internet access. Therefore, if a company
knows the actual customer needs, they will be able to deliver the correct value
plus the benefits that would be comprehended with its initial product offering.
There is no clear definition for the term "brand". As Jean-Noel Kapferer (2008)
says, a brand is one of the hottest points of disagreement between experts.
Each expert comes up with his or her own definition, or nuance to the
definition.
For example, Philip Kotler and Gary Armstrong (2008) defines a brand as a
name, term, sign symbol or a combination of these, that identifies the maker or
seller of the product. But a brand is much more than just a name and logo.
J.-N. Kapferer (2008) writes that a good name helps. One that is easily
pronounceable around the world and spontaneously evokes desirable
associations. But what really makes a name become a brand is the fact that this
name commands trust, respect, passion and even engagement. So in Kapferers

opinion, a brand is not just a simple name it is a name with the power to
influence the market (2008).
Keller places a brands definition as a set of mental associations, held by the
consumer, which add to the perceived value of a product or service (2008). But
a brand is not only about the consumers side. Although Ogylvy said that
"products are built in factories, brands are built in the mind", today it is critical
to take into account the producers side, the brands creator.
David Aaker operates with two terms: brand image and brand identity. Brand
image is how a brand is perceived, brand identity is how the brand would like to
be perceived (2002). So brand identity is about the producers side as brand
image consumers.
Kapferer writes that a brand is a shared desirable and exclusive idea embodied
in products, services, places and/or expectations (2008). For example, Kilian is
a perfume as an art or German chocolate Ritter Sport which is chocolate
with a difference with famous its slogan Quadratisch. Praktisch. Gut. Its
crucial that a brand's image and identity coincide with each other.
Brand deals with the perceived quality. The perceived quality is an important
element in David Aakers brand equity model. According to Aaker, perceived
quality is even more pivotal than the actual quality for brands. He describes the
perceived quality as the customers perception of the overall quality or

superiority of a product or service with respect to its intended purpose, relative

to its alternative (1991). The perceived quality concept is rather complex.
Actual quality and perceived quality is not the same. Achieving actual high
quality, according to Aaker, is not enough. The high actual quality should be
translated into high perceived quality. Consumers should believe in the product
or service.
The perceived quality has a connection with the country of the brands origin.
Aaker, Keller and Kapferer all mention the role of the country of origins effects
on perceived quality. For example, a label Made in Italy has a positive effect
on a consumers decisions about fashion brands, and Made in France has a
similar affect for perfume, wine and also apparel.
Factors affecting a brands perception can vary in different countries and are
usually connected with global trends influencing the consumers behaviour. The
global trends used in the paper are studied by global agencies Trend watching
(www.trendwatching.com) and TNS Russia (http://www.tns-global.ru). Also,
some current tendencies affecting a consumers decisions and marketing
activities have been derived from the Harvard Business Review Magazine ("The
10 Trends You Have to Watch". Harvard Business Review, July-August 2009).