Hyundai Motor India has awarded the advertising accounts of the Accent, Sonata, Elantra and Terracan to Cheil Communications.
While the Sonata and Elantra accounts have moved from Saatchi & Saatchi, the Accent and Terracan accounts move from Grey Worldwide. Saatchi & Saatchi will, however, continue to handle the accounts for Hyundai's compact cars — Santro Xing and Getz.
"We have basically consolidated the accounts of the compact cars with Saatchi & Saatchi, while the accounts for the premium cars have been given to Cheil. We felt that activities surrounding our compact models needed more focus. Also the account shifts will help us to infuse fresh thinking in the brands and also help maintain economies of scale," Mr Sanjeev Shukla, Manager (Marketing), Hyundai Motor India, said.
With the shifts, Hyundai's ad spend of about Rs 50 crore is now equally divided between the two agencies.
When asked if the company plans to increase its advertising spend this year, Mr Shukla said that while the ad spends would remain the same, there would be greater focus on direct marketing and association with sports. "In fact, we are increasingly spending in new areas such as database management rather than mainstream advertising. At present, areas such as direct marketing, database management, etc account for about 8-10 per cent of our total advertising and marketing expenditure. This is a general trend being seen in the auto industry," he said.