2013 PRISM AWARDSCAMPAIGN: Launch of Hyundai R1200LC-9 ExcavatorCATEGORY: Launch of a new projectCOMPANY: HPE AFRICASUBMISSION: NGAGE

Introduction Statement

The launch of the Hyundai R1200LC-9 is a prime example of how a well planned and well executed PR campaign can make all the difference in the launch of a new product, even an industrial one. Despite an over saturated mining market, the launch of this machine by High Power Equipment (HPE) Africa has caused a stir in the mining industry, resulting in a number of decision makers reconsidering their choices of mining equipment. With an extremely targeted approach, this campaign chose quality over quantity and, as a result, was highly successful.

Opportunity Statement

The Hyundai R1200LC-9 excavator is the largest and most powerful in the HPE Africa range and is particularly well-suited for use in mining and quarrying applications. The size and robustness of the Hyundai R1200LC-9 excavator makes it an ideal choice for large earthmoving projects, especially in the harsh African climate and landscape. What’s more, it is more competitively-priced than similar sized competitor excavators, ultimately reducing the overhead costs of managing a larger fleet, while maintaining the highest standards of quality and reliability.

The excavator was launched worldwide in early June 2012, and locally on 21June 2012 by the sole distributer of Hyundai Heavy Equipment, HPE Africa. The aim was to break into a market segment that Hyundai had never participated in before, which is the mining sector. The machine would be going up against trusted brands that have been on the market for years, such as Caterpillar and Hitachi.

The mining sector is an especially difficult sector to break into as it is generally run by older generation miners who are set in their ways, and only use brands that they know and trust. As a result, a change of mindset was needed. Another disadvantage to Hyundai and HPE Africa is the fact that, unlike their major competitors, they do not have existing personnel and workshops on the major mines in Africa. This was overcome by partnering with engine manufacturer Cummins, which has technicians based at most major mines throughout the continent.

Research

Prior to the launch of the excavator, a significant amount of research was done with regard to target audience and markets.

Research was done into the population of similar sized machines in the South African and African market.

Open cast mining came up as the most populated with this particular sized machine. NGAGE researched and targeted a number of trade publications to specifically reach this

audience. NGAGE also researched dates prior to the event and found 21 June 2012 to be the most

suitable time. A targeted database of potential clients was put together in order to invite guests to the

event.

Planning

Measurable Criteria for Success Launch Campaign Objectives

PR Objectives Create awareness of this new machine in the mining industry. Encourage positive media comment and acknowledgement of the Hyundai R1200LC-9

excavator. Position the R1200LC-9 as being just as reliable, yet more competitively-priced, when

compared to similar sized excavators. Change the perception surrounding the Hyundai brand as a serious mining equipment

contender. Achieve R200 000 in AVE

Business Objectives

To obtain ten enquiries. This successfully led to quotations for the machine within the first six months.

To sell two machines within the first year. To sell three machines within the second year. Ensure that significant market share is gained with this model of machine in the long term.

Target Market

The target market was clearly identified as the mining, quarry and hire industries. The target audience was identified as male, between 30 and 60 years old, in the above

sectors. More specifically, procurement officers at major mines were targeted. Contract miners who have smaller fleets were targeted. Junior miners who cannot afford competitor equipment were targeted. Fleet owners who contract their machines to mines were targeted.

Message Formulation

The message was formulated around the fact that the machine is more competitively-priced than similar sized competitor machines and, at the same time, is able to maintain the highest standards of quality and reliability. NGAGE also emphasised HPE Africa’s commitment to service delivery and short turnaround times with the brand message: 'Reliability has a new name, HPE Africa', which was filtered through all communications.

Communication Channels

Due to the target market, trade media was an obvious choice. NGAGE specifically targeted mining, hire and fleet publications. Television coverage was also targeted as HPE Africa is a sponsor of the popular Super

Sport show, Two Wheels, and NGAGE used this to the company's advantage. Social media was considered but, due to the nature of the product, was not acted on. Direct email and telephonic communication with key contacts was undertaken to ensure

that the right people were at the launch. This was key to the success of the campaign.

Media Vehicles

Knowledgeable GM Neil Sauls, who was able to comprehensively answer all queries put forward by the media.

Well researched and well written press release and a case study. A well planned product launch with the excavator not only on display, but working to

demonstrate its capabilities.

Management Campaign Support

The campaign was not only well supported by local management, but also by their South Korean counter parts, who made the journey all the way from Hyundai Heavy Industries' headquarters in Ulsan to show support at the launch. In addition to giving speeches, they also liaised with potential customers and were quoted in the press releases. They were also tasked and prepped for answering difficult questions, such as that of parts delivery and warranty support from South Korea.

Execution

Implementation

The idea behind the launch was to drive the brand message: 'Reliability has a new name, HPE Africa'. Another aspect behind the launch was to enable potential buyers to experience firsthand the amazing capability of this machine. Well placed exclusive editorial was sent to selected publications prior to the launch, informing the appropriate members of the public of the event. Invitations were sent to the press and specifically targeted mining and fleet personnel prior to the event.

The launch of the event itself was held on 21 June 2012 at the old drive-in at Zwartkops race way near Pretoria. A large amount of consideration went into choosing this particular venue, as it was not easy to find a venue that was large enough to contain the mammoth machine, or willing to allow the operators to dig a large hole with it on site.

The idea of operating the machine at the venue - as opposed to simply having it on display under the spotlight - was implemented to further add to the message of reliability. What's more, it also proved the machine's cycle times, which is the time it takes from the bucket penetrating the dirt to dumping the load onto the back of an articulated dump truck (ADT). This is something that every mine or fleet manager looks for when purchasing a machine.

The drive-in screen was covered with a large HPE Africa banner displaying its largest ever excavator. This in itself added to the epic proportion of the event. Guest speakers included ex world cup winning Springbok Kobus Wiese, and Two Wheels presenter Dave Peterson, who entertained the guests after the formal speeches were given. A lucky draw was also advertised on the invitation to draw people to the event. Overall, it was a day for the boys, which is exactly what was needed to introduce such an epic machine to the market. Media packs were also handed out on the day.

Adjustments / Difficulties

A competitor caught wind of the launch and planned a launch on the same day to keep their customers away from the HPE launch. As a result, NGAGE and HPE Africa had to make the difficult decision of whether to move the launch or take the risk of losing potential customers and media. In the end, both companies agreed not to change the date.

Evaluation

Business Success 20 quotes for the machine were sent out. Two machines were sold in the first six months. A total of 15 excavators in this size range were sold in 2012. HPE Africa sold two of them

within six months of the launch, giving the company a 13 per cent market share in this excavator class.

Media Success A print AVE of R282 571.65 was achieved. Two Wheels aired a clip of the event on Friday, 29 June 2012 at 6pm, before repeating it a

further five times between Saturday morning, and the following Tuesday in different slots across the various Super Sport channels. Total AVE amount was over R228 000

Neil Sauls was interviewed on camera for Mining Weekly’s online videos, one of Africa’s biggest and most viewed Mining websites, which receives 25 000 views a week.

"The popular TV-series, the A-Team, had a favourite saying 'I love it when a plan comes together' and this was definitely the case with the launch of the Hyundai 120 ton excavator. HPE and NGAGE presented the end-user, the industry and media with a fun-filled, interactive and informative day. It was one of the functions that stood out for me as an editor and with the professionalism offered by both HPE and NGAGE, I will not hesitate to attend any future event, that they organise. Congratulations and well done." Cherry Ellis – Publishing Manager and Managing Editor, Media 24.

“The HPE Africa event at Zwartkops was one of a kind. The demonstrations were intriguing, fascinating and accomplished the mission at hand of showcasing the significance of the new HPE Africa range. I was very impressed, and will definitely attend more events of this nature.” Zandile Mavuso - Features Reporter, Creamer Media.

“The PR around the launch caused a big stir within the industry. Unfortunately, an R11-million machine is something that doesn’t sell easily. However, the increased customer awareness and resultant competitiveness that it has created has definitely been a huge benefit, and we expect a substantial amount of the machines to be sold in 2013, with the introduction of new company budgets. It is important to bear in mind that this is a mining machine and, with the unease in the mining sector at the moment, it might be severely affected. HPE Africa did, without doubt, receive great PR by working with NGAGE and it definitely has caused talk within the industry,” Kirsty Denholm – Marketing Manager, HPE Africa.