Hyundai card-marketin)
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Hyundai card-marketin)

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The strategy followed by Hyundai card for marketing

The strategy followed by Hyundai card for marketing

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Hyundai card-marketin) Hyundai card-marketin) Presentation Transcript

  • HyundaiCard’s Marketing Strategy
  •  Hyundai Motor Group prepared a long term strategy to enter into Credit Card industry .  They entered into the competitive Korean credit card industry in the year 1999 as “Hyundai M Card” .  HyundaiCard was the top among its competitors in Credit Card industry.  HyundaiCard plans to enter into various international markets.
  • 1960-1970  The first card was appeared in July, 1969 issued by Shinsaegae Department Store to Samsung Corporation employees.  The purpose of issuing the credit card was simply to expand the sales volume (transaction volume) in department store. 1970-1980  A specialized mono-line credit card company was Korean Express Credit Card Company, in 1978. 1980-1990  An aggressive growth of credit card industry was started in 1987 when the Law of Credit Card (currently the Financial Law of Credit Business) had amended.  At this stage, there were four mono-line credit companies established. For example, LG in 1987, Kookmin in 1987, Korean Exchange Bank Credit Service (KEBCS) in 1988, and Samsung in 1988.  Since then, the type of credit card was divided into Mono-line and Bank credit cards.
  •  Hyundaicard is facing tough competition from Kookmin Card, Samsung Card and Shinhan Card, all of whom are leading players in the South Korean credit card industry.  Hyundaicard will have to realize sustainable growth by further developing its differentiated marketing strategies.  It will be important for Hyundaicard to continuously develop advanced marketing strategies, to maintain current customer relations and attract potential customers.  Hyundaicard will have to increase efforts to create new, additional value in the constantly changing domestic market.
  • PRODUCT  Hyundaicard was the first company in Korea to introduce card brand marketing, using ‘alphabet marketing’, premium VIP card program and card design marketing.  In May 2003, Hyundaicard launched its flagship credit card Hyundai Card M and in February 2005, the Black card, the first super-premium brand, targeting the top 0.05% of cardholders.  In February 2006, Hyundaicard launched the Purple Card, an exclusive premium brand, targeting the top five percent of cardholders, and then in 2008, The Red Card.
  • PRICE  Different fee for each kind of card depends on its card holder type and its card benefit or services.  Such as, for VIP card holder the annual card fee can double than university students (HyundaiCard U holder). But this different price must be supported by worth benefit and services from HyundaiCard. PLACE  Retailers.  Websites.  Online and offline channels.
  •  The finance shop was the place that enabled Hyundaicard customers to enjoy all-in-one service, getting financial consultation services and enjoying an ambience created by world-famous designers.  Hyundaicard’s first finance shop opened for business in 2006 in Seoul, South Korea.  By 2009, the company had the network to 12 shops nationwide. Finance Shop
  • Strengths • Country’s 4th largest credit card co. • Won 1st prize in service quality. • Most admired co during 07 and 08. • Ranked no. 1 in the credit card category. • Ranked no. 1 in NSCI for the 3rd consecutive year (05,06,07). • Hyundai card M had the largest subscriber. Weakness • Minimal customer count. • Low in comparison. • Low brand awareness. • Weak marketing communication. • Fewer customer and sustain moderate losses. Opportunities • Encourage consumers to use credit card to stimulate private spending. • Secure more taxes. • Growth in the market. Threats • Strict control of the Korean Government. • Redistributing cards to expired members • Rapid expansion in the number of cards. • Reduced standards for issuing cards. • Late payments. SWOT
  • Political • Active support from the government and encouraging policies. • Government panelized stores not accepting credit card. • Tax Incentives for credit card users. Economical • Strategic alliance with GECF, a unit of GE. • Improvement in risk profile. • Largest subscriber in 2005. • Increased market share from 1.8% -9.96%. Social •Focuses on customer lifestyle. • Based on gender, age, status and card type. • S card for women in 30’s as largest consumer segment. Technological • Use of strategic websites. • Easily accessible from the internet. • Popularization of E-payment in a Tech savvy country. PEST
  • Customer Segmentation  The Innovative marketing Strategy focused on customers lifestyles.  Divided into four categories (General, Low, Middle and High)  Customer segmentation filtered each group’s usage, status and purchasing methods  Helped in collecting data according to their age, gender and the main location of purchase (shops, gas station, restaurants, etc.).  Hyundaicard formulated “Alphabet Marketing”, having unique and creative design.  Hyundaicard executed the company’s alphabet marketing strategy by launching Hyundaicard M, S, W, U, K and A, based on consumer lifestyle.  Thus, the company issued the new “Hyundai Card S” for women in their thirties.
  •  eCRM was introduced in the most widely used credit card websites in Korea.  eCRM collected Hyundai card customer information.  The database provided useful, accurate information about Internet customers and their transactions.  Establishing an effective eCRM system could potentially strengthen Internet services and allow the company to execute Internet marketing strategies.
  •  Hyundaicard integrated online and offline customer data, maximized the potential of marketing campaigns.  It maximized the two channels (online and offline channels) to increase customer profits and strengthen customer relationships.  Hyundaicard enjoyed the synergy effect of online and offline channels for customer information.  The integrated of online and offline information provided accurate customer data to CRM Business departments and related administrators.  The integrated information could then be shared by the whole company.
  •  Korean credit card market experienced a period of overheating, due to a rapid expansion in the number of cards, reduced standards for issuing card, etc.  In the loan services, credit card companies began witnessing an alarming growth in the number of late payments and users with bad credit history.  The Korean credit card industry was a bubble on the verge of bursting.  Hyundaicard had fewer customers and sustained moderate losses.
  •  Hyundaicard, as a market follower, will have to generate an aggressive marketing strategy, to catch up with the market leaders.  Hyundaicard will have to adopt differentiated market strategy.  Hyundaicard will have to create additional value, by promoting cross-selling and expand customized services. Such strategy will perfectly address each customer’s lifestyle and needs.  Hyundaicard will also have to extend its network of alliance with major players, in various industries.  Internationally, Hyundaicard will have to break into the foreign financial markets, so as to become a global player.  As a brand in the international market, raising the status of the company, by solidifying with GE, will be vital.