AMB220-Final situation analysis final PDF

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1.2 Relevant theories The Foote, Cone and Belding (FCB) grid was first introduced in the late 1980s by the senior president of advertising agency Foote, Cone and Belding-Richard Vaughn (). Accordingly, all products will be divided based on two axes of the chart: the level of intervention to purchase decisions (Involvement) and purchase method (Think/Feel). It means that the businesses can categorize where their products are located, thereby offering appropriate advertising campaigns (). A detailed four primary advertising planning strategies can be seen in Figure ().

High informative

Low informative

Thinking Informative (thinker) Car-house-furnishing new products Model: Learn-feel-do (Economics?) 2. Habit information (doer) Food-household items Model: Do-learn-feel (responsive?)

Feeling 1. Affective (Feeler) Jewellery-cosmeticsfashion apparelmotorcycles Model: Feel-learn-do (psychological?) 4. Self-satisfaction (reactor) Cigarettes-alcoholconfectionery Model: Do-feel-learn (social?)

Figure 3: FCB Grid adapted from Belch, G. E., & Belch, M. A. (2019). Advertising : An integrated marketing communication perspective According to the figure 3, motor vehicle category is often located in informative strategy (high involvement/thinking). Since buying a car is such as an important decision when it takes a large amount of money, thus the customer need to spend a lot of time considering, researching and testing before making purchase decision. However, through the campaign for Venue SUV in latest ‘Fits in anywhere, stand out everywhere’, it can be seen that Hyundai’s tactic is to emphasis strongly on the audience’ feeling more than thinking. Most of the promotional videos do not give specific indicators and information about the machine but create viral clips with short content, beautiful images and impressive messages. When specific information is less than an attitude or holistic feeling, psychological model is important aspect(). Therefore, affective strategy might also be an appropriate option for Venue model to focus on product enjoyment, enhancing self-image, and building selfesteem for target customers, when brand aim to appeal to an audience who appreciates standout design, uniqueness experience (web). In other words, the brand could use both strategies flexibly for the advertising campaign depending on different channels advertising. When Richard Vaughn introduced FCB grid, he suggested that strategies should not be restricted to the four quadrants of the matrix, some products could mix different strategies ().

The hierarchy-of-effects theory is critical in the creation and evaluation of advertising for high-involvement purchasing decisions (Belch, 2019). Moreover, this model is developed based on the learn-feel-do theory where functional and knowledge designed to create customer acceptance leads to subsequence purchase (). Thus, since Hyundai venue is an informative and affective theory, this model will be the most appropriate response mechanism. The graphical representation of these models is shown in Figure 4. Stages

AIDA Model

Hierarchy of Effects Model

Cognitive Stage

Attention

Awareness

Interest Desire

Knowledge Linking Preference Conviction

Affective Stage

Innovation Adoption Model Awareness

Interest

Information Processing Model Presentation Attention Comprehension Yielding Retention

Evaluation Behavioural Trial Stage Action Purchase Adoption Behaviour Figure 4 Response Hierarchy Models, adapted from “Advertising: an integrated marketing communication perspective”, by Belch, G.E., & Belch, M. A. (2019). 1.3 Ethical considerations The Australian Association of National Advertisers (AANA) has implemented this Code as part of its self-regulation programme for advertisement and marketing. Its goal is to make sure that ads and other ways of marketing contact are legitimate, good, fair, and truthful (AANA, n.d.). Thus, Hyundai should be mindful of any potential breaches of this code of ethics while planning campaigns. Furthermore, for specifically motor vehicle advertisements, advertiser should concern the Federal Chamber of Automotive Industries Code (FCAI Code) that provide guidance a responsible approach when advertising for motor vehicles ().

Regulatory in Campaign-Objectives Make sure the statistics, information, and function are correct. Do not exaggerate the product functionality. Avoid misleading conveyed messages.

Codes of Ethics 1.2 Advertising or Marketing Communications shall not be misleading or deceptive or be likely to mislead or deceive

Ensuring no stereotype content

2.1 Advertising or Marketing Communications shall not portray people or depict material in a way which discriminates against or vilifies a person or section of the community on account of race, ethnicity, nationality, gender, age, sexual preference, religion, disability, mental illness or political belief. 3.2 Advertising or Marketing Communications for motor vehicles shall comply with the Federal Chamber of Automotive Industries Code of

Ensuring appropriate standards for portray of image, themes, and message relating to road safety.

Practice relating to Advertising for Motor Vehicles. Allow for a variety of scene shot in different terrains and surface. However, ensuring terrain test shots do not contain speed and safety rules

An advertisement may legitimately depict the capabilities and performance of an offroad vehicle travelling over loose or unsealed surfaces, or uneven terrain, not forming part of a road or road related area. Such advertisements should not portray unsafe driving and vehicles must not travel at a speed which would contravene the law Adapted from “AANA Code of Ethics”, by the Australian Association of National Adverisers; and……………. 1.1Product, Category and Competitors Hyundai Motor Company was founded in 1967 by the current chairman and CEO, Mong-Koo Chung, with the majority mission is that develop new technologies and products to enhance the safety and convenience products (web). In 2019, Hyundai has launched its new SUV model, Venue, through a campaign ‘Fits in anywhere, stands out everywhere’ for Australia market. Sport utility vehicles (SUVs) is a model bias conveniently sized, connectivity, safety, comfort and uniquely boxy design style (web). According to IBISWorld, 2020 indicated that SUVs have surpassed passenger cars as the most common vehicle type in Australia which accounted for 44.4 per cent of the market in 2020. The table below shows the motor vehicle segmentation.

SUVs’ share of industry sales has increased significantly over the last five years (IBISWorld, 2020), in which the highest selling in 2020 was Toyota, with an impressive 204,801 vehicles sold for 22.3 per cent market share and Hyundai is in third place with 7.1 per cent market share (FCAI, 2020). This industry’s level of competition is medium and forecasted increasing which have four largest players accounted for more than 40% of industry revenue, and many more medium-size players behind these companies (IBISWorld, 2020). BANG

Toyota has been the highest selling car brand in Australia for many years, due to brand loyalty among consumers and a range of vehicles spanning locally manufactured, while Hyundai Motor Company Australia Pty Limited is ranked number 231 out of the top 2000 companies in Australia with total revenue of $2,107,027,000 in 2019 (IBISWorld, 2020). However, the growth revenue rate of Hyundai is quite slow due to growing demand for utility vehicles, which brand does not offer (IBISWorld, 2020). Therefore, with the new product line of Venue integrating many utilities can create a new breakthrough for Hyundai. 3. Target audience analysis 2.1 Segmentation of target audience and the influential factors on the target audience’s decision marking Hyundai Venue is positioned as the car for Gen Z and Millennial generation. Through economic, individual and reputation factors influencing these customer’s purchasing decisions(…), the brand has discovered the ideal conditions for developing advertising campaign to potential customers. Favorable economic factors can be used to participate in risk-reducing buying decisions in high-involvement decisions such as car purchases (…), thus income has a positive effect on the decision to buy a new car (emeard). The motor vehicle price index is expected to decline in 2020-21 as a result of lower disposable income, according to IBISWorld. As a result, products with reasonable prices have become popular. Secondly, according to a study shows that the Millennial generation values aspects of individual interest, such as status and performance, as well as aspects of family background, such as safety and comfort (..). Additionally, these customers tend to consult their peer group and family about their car buying preferences. The table below shows more complete representation of those analyses. Demographics

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City-dwelling millennials generation and Gen Z between 22-30 - Earning around the average Australian wage of 90,800 dollars ()

Geographics

- Men and women - Living in urban areas of Australia

Psychographics

-

-

Behavioural Characteristics

-

-

Benefits Sought

-

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The young people with a fondness for the latest and hottest trends and technologies () Appreciate the value of convenience, minimalism lifestyle and considering the friendly environment product () Action-oriented, be interested in experiences () These customers will become brand loyal if the product is view as ‘value for money’ They look for the review information, rely on more the opinions of relevant others and word-of-mouth (WOM) recommendations ( All the modern-day essentials (connectivity, safety, comfort, style…) are included as standard Affordable price Upgraded features Reduce fuel consumption

Adapted from……. Moreover, the value, attitudes and lifestyles System (VALS) is most commonly used in psychographic segmentation to gain a deeper insight into the behavior of consumer beside demographic information (). According to this framework, this target audience would be ‘Experiencer’ as they are action-oriented people who keep up with the latest trend and spending money on social activities(). Bangr vals

Figure 5. Values and Lifestyle System Framework. Adapted from "V als – values attitude lifestyle," by Bhasin, H BY STRATEGIC BUSINESS INSIGHTS, 2014 http://www.strategicbusinessinsights.com/vals 2.2 Consumer Insight...