Kia Motors Canada is one lap closer to its fall launch after a review that ended with Griffin Bacal Volny edging out a competing Toronto shop to win agency of record status.
The advertising strategy for the new Canadian operation of the Korean automaker is still in the planning stages and although the budget is not being disclosed, it’s estimated to be between $5 million and $10 million.
Kia has been operating in the U.S. since 1994 and now has 500 dealers across the country. In that territory, the company puts most of its budget into television. Further, it has been steadily increasing its ad spending over the last few years. It spent US$39 million in 1997 and US$33.1 million for the first half of 1998 alone. When it launched its 1999 Sportage compact sports utility vehicle (SUV) last year, it did so with a US$10 million TV-only campaign, created by Goldberg Moser O’Neill of San Francisco, Kia’s U.S. agency.
Andrew Gray, assistant marketing manager for Kia Canada, says while some U.S. creative may be used in Canada, there is no obligation to do so and much of it will come from the new agency.
He says he’s expecting great things from GBV, adding its solid track record and automotive experience were key factors in choosing the agency.
‘They’re all automotive enthusiasts,’ says Gray. ‘They had a very good chemistry that worked very well with us.’
For his part, GBV president Peter Volny says the agency is thrilled with what he calls an ‘amazing piece of business’.
He says the Kia account is a great addition to a roster that includes automotive aftermarket clients such as Yokohama Tire and Castrol but no automaker since resigning Lada more than four years ago.
Volny says he was impressed by the professionalism of Kia both in the U.S. and Canada, the quality and design of its vehicles, and most importantly, glowing reviews by U.S. dealers that he polled.
This year Kia will unveil year 2000 editions of two of its brands: the Sportage SUV and the compact Sephia.
Both vehicles have won a number of industry awards and awards from automotive magazines.
The Sephia is expected to compete with the Hyundai Elantra, Toyota Corolla and Chrysler Neon while Sportage will give the Honda CRV and Toyota RAV4 a run for their money.
Two other vehicles, a sub-compact and a minivan, will be added to the lineup for 2001.
Kia Canada’s parent company, Kia Motors Corp. of Seoul, South Korea, was recently purchased by Hyundai Motor Co., the company that brought the first Korean-made cars to Canadian roads 15 years ago.
