Names such as Honda, Nissan and Toyota are already flying the flag for Asian car brands. The latter in particular is looming large in the rear-view mirror of General Motors, the world's biggest carmaker, and may yet take the top spot. So it is not surprising that SsangYong is raising its game and hoping to steal some of the limelight.
Last week, former Kia managing director Paul Williams, recruited by SsangYong's importer Koelliker UK last month, hired Cosmic ID to handle its ad account. Williams has also been reunited with Nigel Unwin, his former events and sponsorship manager at Kia, who has joined as marketing director.
SsangYong, which has been available in the UK since 2003, is now pursuing a fresh positioning in time for the launch of its mid-market Rexton and Kyron 4x4 models and the seven-seater Rodius.
Cosmic ID's strategy will be to build the SsangYong brand 'from the bottom up' and focus its advertising on the niche groups for which its big, diesel-powered vehicles are most appropriate. This will initially involve advertising in countryside- or caravan-related magazines and through the brand's rural dealer networks. More mainstream media activity may follow as part of the multimillion-pound campaign, says the agency's strategy director, Jon Edwards.
Practical considerations
The bottom seems an appropriate place to start. The marque sold just 1323 cars last year, although there is evidence that the brand is saleable; 33,672 cars have been bought in Italy since its launch there in 2003 and, according to the Society of Motor Manufacturer and Traders UK (SMMT), SsangYong UK registrations in January were 72.5% up year on year. Nonetheless, its ambitions are modest with UK sales targets of just 3000 for 2008.
SsangYong has made efforts to emphasise that it will not pursue the traditional aspirational car promotional strategy seen in the UK, instead focusing on selling practicality. Edwards is under no illusions about the task ahead, conceding that the smaller player cannot yet go 'head to head with the big brands, not even other Asian brands such as Kia'. Nonetheless, although thinking small now, he eventually sees SsangYong's main competitors as the bigger vehicles from Nissan, Mitsubishi, Jeep, Hyundai and Chevrolet.
Whether SsangYong will reach these heights is yet to be seen, but one thing is certain: the marketing push could not come at a better time. In 2007, 180,000 4x4 vehicles were sold in the UK and the market is set to get tougher with 27 4x4s launching in the UK last year alone.
Ian Fletcher, an auto specialist at financial analysts Global Insight, believes SsangYong faces a tough challenge because consumers are unfamiliar with the brand. 'People are more interested in Land Rovers and Toyotas because they will go for a brand that they trust.'
The marque may also struggle as consumers feel financial pressures due to banks' reluctance to lend, higher interest rates and falling house prices. On top of that, the auto market is already shaky, with statistics from the SMMT showing that January car sales declined 2.1% year on year.
Meanwhile, the team at Kia, SsangYong's most obvious rival, due to its origins and pricing similarities, is not worried by SsanYong's impending activity. It is already working on a strategy and has launched a 'Designed to change your mind' campaign, intended to reposition the brand as a higher-end marque to rival Peugeot, Renault and Vauxhall. Walt Madeira, an auto analyst at CSM Worldwide, says this is the right strategy for Kia to pursue, and cites its ads featuring tennis stars Andre Agassi and Rafael Nadal to boost its image as a wise move.
Simon Hetherington, marketing director at Kia Motors UK, claims SsangYong is not yet a direct competitor and describes it as 'where [Kia] used to be'. Kia is already well ahead of SsangYong in the sales stakes, selling 16,288 cars in the UK in 2007, up 7.7% compared with 2006.
SsangYong might yet have a battle on its hands to win over the UK market, but with targeted marketing activity and by using the experience acquired by Williams and Unwin during their time at Kia, it could reach its 3000-car sales target this year and move one step closer to mirroring its success in Italy.
Timeline
- 1954 SsangYong starts manufacturing vehicles under the Ha-Dong-hwan Motor workshop name.
- 1988 Becomes the SsangYong Motor Company.
- 1991 Signs a strategic alliance with Mercedes-Benz to develop light commercial vehicles.
- 1992 Signs an agreement with Mercedes-Benz to cover the development of petrol engines.
- 1994 Completes the construction of a second plant at Changwon, which manufactures petrol and diesel engines.
- 1998 SsangYong Motor Company merges with Daewoo Group.
- 2000 Separates from Daewoo to become an independent manufacturer again.
- 2003 Enters UK market.
- 2004 Merges with Shanghai Automotive Industry Corporation (SAIC) of China.
- 2006 Turnover reaches nearly $3.2bn.
- 2007 Opens European parts centre in the Netherlands; SAIC and Nanjing Automobile Corporation merge, bringing Longbridge and the MG brand to SAIC.