Hyundaicard's Marketing Strategy: Case Study
Write a full case analysis: HyundaiCard's Marketing Strategy
Hyundaicard's marketing strategy
General overview of Hyundaicard
Current marketing strategy assessment
Financial analysis
Strategic alternatives
Assessment of the strategic alternatives
Implementation plan
Exhibits
Segmentation criteria
Qualitative ranking of alternatives
Market share of credit card companies
Preference of payment
Hyundaicard financial statements
This essay is a case study for Hyundaicard marketing strategy. Hyundaicard is a company situated in Korea's credit card industry. It forms the basis of the case study because of its' unique experience with marketing, since it was a late comer in the very competitive market it had to employ various marketing strategies in order to shift from being a market follower to being a market leader.
This study will first of all identify some key issues or aspects of the company after which it will conduct an evaluation and assessment of the company's internal and external situations. Thirdly the paper will look at some of the possible alternative strategies of which the company can employ and at the end one alternative will be chosen. Lastly the paper will give some few recommendations before it ends with an action plan that includes a projected financial performance after the recommendations have been implemented by the company.
General overview
Hyundaicard Company was established in 1999 after the Hyundai KIA Automotive group acquired Diners card, which was the first company to release into the market a general purpose credit card. Thou initially it didn't trade in the name of 'Hyundaicard', the current card name was only implemented in 2001 when the company resorted to re-energies itself and take a leading position in the market place.
The Korean credit card industry first developed in 1969 when Shinsaegae; a Korean department store which introduced the first credit card into the market that was to be used by its' customers, this development was later to be followed in 1978 when another credit card was launched by the Korean exchange bank for its' customers who travelled frequently. By the 1980's many players had already entered into the Korean credit card industry and it is reported that by the year 2000 the industry had recorded a tremendous growth with over a hundred million credit card issued countrywide.
The Hyundaicard which is the case study of this paper is perceived by marketing consultants to focus more on customer needs, this was after it shifted to a new online marketing campaign strategy and also new credit card products. In a bid to address customers' needs the Hyundaicard launched a strategy that involved dividing it clients' base into segments with regards to their respective lifestyle activities, in addition it has also diversified its' product line by introducing new products such as the purple and black credit card.
Goals and objective
Hyundaicard company's goal was to make its' retail businesses, financial services and internet fields, leaders in the market in terms of innovation and quality of their products and services. And by forming a strategic alliance with another company called the GE consumer finance (GECF), Hyundaicard Company aimed at increasing its revenue, market share, sales level, reputation and image and product development, since the new strategic partner was expected to provide extra funds, risk management system and financial product planning for Hyundaicard to initiate marketing campaigns for alphabet cards that were designed for their new unique and customized services.
The company had a long-term objective of transforming itself from what many used to know as an automobile manufacture into a global leader in the provision of additional services that are related to the automobile industry.
Problem statement
At its inception in 1999, the creative business model of Hyundaicard which was based on innovative products, integration of offline and online customers and the general consumer needs, forecasted that their clients would be given a discount of up to two million won as a promotion for using the Hyundaicard when purchasing Hyundai automobiles. This discount awarded could be paid back using points accrued from the use of the credit card in a five-year period. Thou there was commendable success of the creative business model in the Korean market, the performance of the company had not shown the much anticipated improvement, seven years down the line.
This prompted the company to evaluate its' marketing strategies, after which it was evident that the company experienced difficulties in relating its' creative business model to the loyal clients of other leading companies in the Korean credit card industry. This resulted to a minimal client base i.e. The number of Hyundaicard holders was very minimal representing a very small...
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