Case Study - IIM Kozhikode

Case Study

IIMK/CS/127/MM/2021/05

March 2021Kia: Change of Logo and a new slogan

1Professor, Marketing Management Area at the Indian Institute of Management Kozhikode, India. IIMK Campus P.O., Kozhikode, Kerala 673 570, India; Email: [email protected]; Phone Number (+91) 495 - 2809241

Atanu Adhikari1

Kia: Change of Logo and a new slogan

Introduction

Recently, Kia has unveiled a new logo and slogan. According to the Korean car manufacturer, the new logo represents ambitions of the company to establish itself in a position of leadership in the future. The company's new brand slogan is ‘Movement that inspires’. Kia's new logo is a continuous-stroke design, which resembles a handwritten signature. This new logo comes on the heels of the Plan S business strategy unveiled in 2020. Under this plan, the car manufacturer will focus on electric vehicles and focus on different mobility services custom-made for different individuals across different local markets.

Kia’s new brand slogan, ‘Movement that inspires’ reflects Kia’s new purpose of inspiring consumers their experiences with the brand through its products and services. Auto analysts felt that Kia’s new brand purpose emphasizes that movement is at the genesis of human development. According to the company, movement enables people to see new places, to meet new people, and to have new experiences. The company felt that this connection is the essence of Kia’s new brand – to enable human progress by providing innovative in-car spaces, exciting new products, and meaningful, convenient services that inspire customers and free up time for the activities that they enjoy the most. Artur Martins, Senior Vice President, Head of Global Brand & Customer Experience at Kia, said

“Movement has always been at heart of our brand, and moving people at the core of our business. Movement helps humankind to constantly progress, improve, and evolve. That is why at Kia we believe that movement inspires ideas.”

Kia has been in the ‘movement’ industry for more than 75 years, and the company went on to create Korea’s first domestic bicycles and to manufacture motorcycles and delivery trucks. The company hoped that its new brand slogan and the new logo, Kia will meet changing customer expectations about how they move, and how their movement impacts the world around them.

Kia’s new brand strategy is to respond to – and shape – these changing expectations by developing a range of products and services to meet customers’ needs in markets around the globe. These will offer greater access to a wider range of environmentally conscious mobility products and services to meet growing demand from customers worldwide for

flexible, customizable, individualized mobility solutions, enabled by data and new technologies.

As part of the announcement function, Kia also set a new Guinness World Record for the ‘Most unmanned aerial vehicles (UAVs) launching fireworks simultaneously’. 303 pyro drones were used to launch hundreds of fireworks in a synchronized manner. The company was in dilemma whether the logo and the slogan fulfils all aspects of brand salience.

Auto mobile industry in India

In 2019, toppling Germany, India went on to become the fourth largest automobile. India sold about 3.99 million units of passenger and commercial vehicles. By the year 2020, India is even expected to displace Japan and occupy the third position in the automobile industry. In India the market is largely dominated by the two wheelers segment in the context of sales volume owing to a demand among the rising middle-class and the youth. Again, the Indian automobile companies have displayed a keen interest in the rural markets which has further facilitated the development of this sector.

Market Size

Domestic automobiles production increased by 2.36% CAGR between the financial years 2016 to 2020 with 26.36 million vehicles being manufactured in the country during the financial year 2020. Overall, domestic automobiles sales increased by 1.29% compound annual growth rate (CAGR) between the financial years 2016 to 2020 with 21.55 million vehicles being sold during the financial year 2020. Two wheelers and passenger vehicles dominate the domestic Indian automobile market. Car sales in India predominantly comprise small and mid-sized passenger cars. Two wheelers and passenger cars accounted for 80.8% and 12.9% market share respectively, accounting for a combined sale of over 20.1 million vehicles during the financial year 2020.

Company Background

In 1992, Kia Motors America was established in the United States of America. The first Kia-branded vehicles were sold in the United States of America in 1992 from four dealerships in Portland, Oregon. Since then, Kia methodically expanded across one region at a time. Dealers in 1994 sold the Sephia and a few years later the United States segment expanded their line with the Sport age. Over one hundred Kia dealerships existed across thirty states by 1995, selling a record 24,740 automobiles.

In the year 1997, owing to the financial calamity which had affected Asia, Kia was forced to declare insolvency. The following year, that is 1998, Kia welcomed diversification by agreeing to exchange proprietorship with Hyundai Motor Company. By outdoing Ford Motor Company (which had a stake in Kia Motors since 1986) Hyundai Motor Company attained 51% of the company. And, subsequently with ensuing disinvestments, Hyundai Motor Company possesses about a third of KIA Motor Corporation. In the same light, Kia Motor company also owns around 22 subsidiaries of Hyundai Motor Company.

Kia Motors: new logo and brand slogan1

Kia has revealed its new corporate logo and global brand slogan that signify the automaker’s new brand purpose and the values it promises to offer customers through future products and services, and the experiences these enable. A press declaration highlights Kia’s intentions behind coming up with a new logo design. It is a reflection of Kia’s motivations to create a position of leadership in the automobile sector by refurbishing all aspects of its business. The logo is structured in the form of unbroken lines that voices the commitment to forging moments of inspiration that the company indorses. Further, the logo’s proportion is a demonstration of the company’s confidence. The logo is designed like a handwritten signature which again the very ethos that the organisation symbolizes.

The continuous lines of the Kia logo reflect the company’s commitment to bringing moments of inspiration to the customers, while the symmetry of the logo demonstrates poise and assurance. The rising gestures of the logo embody Kia’s rising ambitions for the brand, and, more importantly, what it offers its customers. Ho Sung Song, Kia’s President and CEO said

“Kia’s new logo represents the company’s commitment to becoming an icon for change and innovation. The automotive industry is experiencing a period of rapid transformation, and Kia is proactively shaping and adapting to these changes. Our new logo represents our desire to inspire customers as their mobility needs evolve, and for our employees to rise to the challenges we face in a fast-changing industry.”

The new logo was unveiled during a record-breaking pyrotechnic display in the skies above Incheon, Korea. The event witnessed some three hundred and three (303) pyro

1 https://press.kia.com/eu/en/home/media-resouces/press-releases/2021/Kia-unveils-new-logo-and-global-brand-slogan.html

drones launching hundreds of fireworks in the form of a synchronized artistic display, igniting and celebrating Kia’s new foundation. This set a new Guinness World Record for ‘Most unmanned aerial vehicles (UAVs) launching fireworks simultaneously’.

The History of Kia’s Logo2

A powerful and renowned brand is one of the pillars of a great company and it is as essential as the other assets that the company uses to conduct its business. In marketing, it is termed as the silent salesman. From 1953 till date, Kia’s international logo design has undergone six evolutions. Interestingly, Kia is one of the few companies, if not the only one, that has two logos representing it at the same time: a text-based logo and a stylised-K logo for both the international and the local markets, respectively.

Background of old logo3

Kia Motors restructured its logo in 1964 to mirror its new array of business which was the production of license cars. The present logo included a circle with a diagonal line emerging out of it and positioned in way that focuses upwards towards the right. This design of the logo appears like an inverted letter Q, which is green in colour.

In 1986, Kia went on to redesign its logo once again. The restructured logo now comprised an embellished word-mark, in thick bold lettering of a custom font, and a undulating line was affixed to the upper part of the letter ‘K.’ Two colours-black and sky blue, were used in designing the new logo. The most acquainted Kia logo that we know of today, was created in the year 1994.The logo is in the form of a text and it invokes the name of the company in a sophisticated and graceful manner. This logo is structured in the form of three uppercase letters positioned on an ellipse with the letter ‘A’ devoid of its horizontal line. This logo is displayed with pride on Kia’s international convoy of cars.

In 2004, the same custom text-based logo design that we are familiar with experienced a minor modification–this slight alteration makes the red colour look brighter. There’s another logo that people hardly see around because it is mostly used in their local

2 (https://blog.logomyway.com/kia-logo/

3 https://press.kia.com/eu/en/home/media-resouces/press-releases/2021/Kia-unveils-new-

logo-and-global-brand-slogan.html)

markets- the K logo. This logo featured a stylized letter K designed with white lines resting in a black ellipse.

Kia endeavoured to introduce another logo in the market. In July 2019, the company sent an application to the Korea Intellectual Property Right Information Service (KIPRIS) to register its new logo. The trademark application is still under consideration as of this writing. In comparison to all the previous logos, most people consider this angular logo design to be the most stylized logo that Kia has ever created.

Background of the new logo4

Kia Motors new brand logo and its global corporate motto indicate the valiant renovation that Kia has undergone over the years and also highlights the renewed purpose of the brand. The new logo is also an embodiment of Kia’s motivations to establish a position of leadership in the automobile industry which they desire to accomplish by refurbishing almost every aspect of its business.

The logo symbolizes the new purpose of the brand and the standards it vouches to offer its customers through its products and services in the future, and the experiences these would allow them. Kia strengthens the vow all the more by creating the new logo in the form of a handwritten signature. The graceful, continuous contour of the logo articulates Kia's assurance to bringing about instants of motivation, while its evenness and proportion demonstrate poise and elegance. The rising motions of the logo denote Kia’s dauntless ambitions for the brand, and, more notably, what it aspires to offer its customers.

“Kia’s new logo represents the company’s commitment to becoming an icon for change and innovation”, opined Ho Sung Song, Kia’s President and CEO. “The automotive industry is experiencing a period of rapid transformation, and Kia is proactively shaping and adapting to these changes. Our new logo represents our desire to inspire customers as their mobility needs evolve, and for our employees to rise to the challenges we face in a fast-changing industry.”

Kia revealed its new logo in the form of a fire-works display in the skies of Incheon in South Korea. It was an unprecedented and path-breaking event which showcased three hundred and three (303) pyro drones setting in motion hundreds of fireworks in a coordinated creative display, commemorating Kia’s new inception. The event earned a

4 https://blog.logomyway.com/kia-logo/

place in the Guinness Book of World Records for the ‘Most unmanned aerial vehicles (UAVs) launching fireworks simultaneously’.

Kia’s new brand slogan (along with the redesigned logo) the world over is, ‘Movement that inspires’. Detailed information related to Kia’s new brand stratagem which contains the purpose and philosophy of the brand as well as the array of Kia’s future products, were communicated through the digital ‘New Kia Brand Showcase’ event which was held at 01:00 AM CET on the 15th of January, 2021.

Ensuing the unveiling of the new logo Kia announced their long-term business policy titled ‘Plan S’ in 2020. Under this strategy, Kia, among other aims, is ambitious about achieving a position of leadership in the global auto market. The company aims to achieve this by concentrating on promoting electric vehicles and acquaint customers with a broad assortment of mobility amenities, custom-made to meet the needs and sensitivities of individuals as well as the local markets.

The Kia brand of cars are easily identifiable among all the other automobile brands in the market. And it is all thanks to its simple and comprehensibly designed custom logo5. The logo is an identifiable sign that customers can easily recognise and associate it with a specific brand, for instance, Kia. Without logos companies would lose their identity and become generic. During the various stages of its evolution, the Kia logo has been an expression of the company’s vision and its product offerings to its customers. This is an indication of the company’s sustainability in the topdrawer business. The elliptical shape of the logo is a reminder to the stakeholders of the company’s vision of a strong global presence. It also amplifies the company’s objective to manufacture eco-friendly cars with the view to safeguard the environment6. Its simplicity, style, and uniqueness are projected in their cars. Kia cars provide comfort, style, luxury, and innovation while providing value for money. Finally, the red-bold typeface that spells Kia resonates the company’s passion and courage to confront future challenges.

Consumer behaviour of foreign brand car in India7

The Automobile industry in India is expanding on a large extend. With the increasing ratio per capita income of the people, studies highlight an increasing trend in the

5 https://blog.logomyway.com/kia-logo/ 6 https://blog.logomyway.com/kia-logo/ 7 https://yourbusiness.azcentral.com/features-slogan-5762.html) (https://images.app.goo.gl/5FjCsmhBmCNr8vtk9

purchase of luxury items like cars, diamonds, and others. Consumers are increasingly seeking out flexible, environmentally conscious, and integrated forms of transportation.

Presently, companies are endeavouring to serve their customers at any level and point according to their wishes and demands. They are looking of ways and manners in which to satisfy their customers and one of the many methods of finding the customer satisfaction quotient is the “Customer Satisfaction Survey”. Customer satisfaction refers to the measurement of customers’ behaviours following their purchase of a product. It is calculated in terms of a customer’s expectations meeting the perceived value of goods and service. A customer is considered happy and content if the perceived value of goods and service exceeds the customer’s expectations and again, a customer is discontented if the perceived value is less than the expected value of the goods and service. Moreover, customers most of the times want the best conceivable product or service but at a low cost. The manner in which the notion of the best product or service available at the lowest price along with safety significantly impact both the industry as well as the consumers. The Indian market, prior to independence from colonial rule was perceived as a market for imported automobiles per se and India, instead of manufacturing, was mostly into assembling cars manufactured by General Motors and other brands of automobiles. The Indian automobile industry was primarily engaged in the servicing, distribution, funding and upkeep of automobiles. Post-independence and till 1950, the Indian Railways played a crucial role in meeting the transportation requirements of the country. And, almost after a decade, post-independence, production of automobiles commenced in India. The Indian automobile industry has encountered a lot of challenges and detriments since independence. In India, the production competence of automobiles was constrained by the rule of license and could not be augmented. However, despite the trials and tribulations the automobile industry in India has, over the years, has developed significantly and achieved success.

The Dilemma

KIA, as it launches the new logo and slogan, is not sure how the consumers will take the new design. Would it fulfil all criteria of the brand salience or the change would only invite some critic's comments and would remain as fad?

EXHIBIT

Exhibit 1: KIA's new logo

Exhibit 2: KIA's new slogan

https://www.youtube.com/watch?v=F_DOgGp_QYU

Exhibit 3: Industry details of automobile industry

Exhibit 3: Different dimensions of consumer behaviors

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