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
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.
A specialized mono-line credit card company was Korean Express Credit
Card Company, in 1978.
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
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
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
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.
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.
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
Hyundaicard’s first finance shop opened for business in 2006
in Seoul, South Korea.
By 2009, the company had the network to 12 shops
• 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
• Hyundai card M had the largest subscriber.
• Minimal customer count.
• Low in comparison.
• Low brand awareness.
• Weak marketing communication.
• Fewer customer and sustain moderate
• Encourage consumers to use credit card to
stimulate private spending.
• Secure more taxes.
• Growth in the market.
• 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.
• Active support from the government and
• Government panelized stores not
accepting credit card.
• Tax Incentives for credit card users.
• Strategic alliance with GECF, a unit of GE.
• Improvement in risk profile.
• Largest subscriber in 2005.
• Increased market share from 1.8% -9.96%.
•Focuses on customer lifestyle.
• Based on gender, age, status and card
• S card for women in 30’s as largest
• Use of strategic websites.
• Easily accessible from the internet.
• Popularization of E-payment in a Tech
The Innovative marketing Strategy focused on customers
Divided into four categories (General, Low, Middle and High)
Customer segmentation filtered each group’s usage, status and
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
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
The integrated information could then be shared by the whole
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
Hyundaicard, as a market follower, will have to generate an
aggressive marketing strategy, to catch up with the market
Hyundaicard will have to adopt differentiated market
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.