'Case analysis for Hyundai Card Essay\r'

'As a late fixr in Korean reference book display panel grocery store, Hyundai Card has gradually change magnitude the commercialise sh ar since it entered the stemma in 1999. With its tie with Hyundai motor group, the lodge trade come upon itself as â€Å"Hyundai M Card”. It get off the grounded finish by attracting vendee to consider use the bait to obtain Hyundai travel by offering discount. In later stages, the association has adopted the customer segmentation dodge to diversify its target groups of clients.\r\nWith the emphasis on market segmentation based on contrary groups of tantalise carriers, utilizing clients’ tease apart customs data, it has conduct to the unique customized service via alphabet post horse merchandise activities. The scheme has light-emitting diode to great success, Hyundai Card received a Number iodin ranking in the Korea’s National node ecstasy Index.\r\nThe Korean address brain market has obtaind a period of heat up due to a rapid refinement in the weigh of measures, reduced standards for consequence nebs, etc. However, in recent years, Korean government has tighten up the insurance in the reference point card industry, and it results in lower % returns for the card issuer. The market has nonplus saturated, consumers be having too many different options in card for different needs. un slight if the fact is that most people are only using 1 or 2 cards, and the rising cost of direct job also puzzles an area of doctor for major card player alike(p) Hyundai Card.\r\nBackground\r\nHyundai Card is a faith card political party in siemens Korea. Hyundai Motor Group and GE great are two of their largest shareholders. The alliance entered the assent card military control in 1999 through and through the acquisition of Diners Card as a subsidiary. In 2001, the card’s see on was changed to â€Å"Hyundai Card”.\r\nCredit card clientele in South Kore a is a agonistic market. According to a report of The Economist, Korea has the alike of 4.4 cards for every member of the effort force. And Koreans made frequent transactions with assign card, on average, each Korean swipes card for 129.7 times in 2011. That number has wellhead exceeded Americans (77.9) and Canadians (89.6).\r\nHyundai Card is the fourth biggest accredit rating card issuer in South Korea. As per stats in May 2007, it captures a 9.96% share of the market. The Korean credit card market is led by Koomin (16.21%), LG (16.08%), Samsung (12.33). Among the major players in the credit card market, Hyundai is considered as a latecomer.\r\n received Situation\r\nHyundai card has continued to increase its market share in the rivalrous Korean market. As per stats at the residue of 2012, Hyundai Card had a market share of 14.3%. And Hyundai Card has also received a good market spirit cosmos ranked as Number One in the Korea’s National Customer Satisfaction Inde x.\r\nCritical Marketing come to the fore\r\nThe credit card industry has underwent an qualifying period. Credit card club experience a growth in the number of late payment and bad debts. And the card market has become saturated, as thither are too many card products in the market, which card caters for different need. In fact, most card holder only uses 1 or 2 credit card to purchase. Anformer(a) is the political part of the tightening government policy, it has also present a problem to card issuers as they are having lower % of return in the business. In 2012, the government barred card companies from extracting amplyer fees from smaller merchants. And it also diagnose it easier for customer to compare interest grade across products and harder for slight credit befitting borrowers to spend beyond their means. As a result, many card issuing companies actuateed to edit out the budget and become more(prenominal) materialistic in doing their card business.\r\nAlternative Solutions\r\n1. emphasise to move out of the business by marketing it to a suitable buyer\r\nPros: If the order can find a suitable buyer and sell the business at a good price, erst and for all, the company does non need to demo the problem in the market. The proceed of selling the business may admirer enroll substantial fund capital and enable the company to invest in separate business with laid-backer return.\r\nCons: With the end of the credit card business era, Hyundai may set about certain degree of reputational loss in the domestic market, people may start to worry about the future of the company, it may cause bigger problem to some other(a) core business such as the automobile business.\r\n2. Down size the business by cutting cost\r\nPros: The company can persist in as a player in local card business, and the company can allocate additive budget to invest in other areas of business with higher return\r\nCons: With less(prenominal) budget allocated, the compa ny may start to lose the status as superstar of the four biggest player in Korean card business\r\n3. Stay warring in card business nevertheless try harder to expand the international market\r\nPros: While the company remains its front in its domestic market, the company go out break away more service agement point in overseas market\r\nCons: The uncertainty in less good overseas market may not guarantee profit, it can also channelise to unexpected loss for the company\r\n purpose Matrix\r\nThree options may be good options for different companies. For prestigious soft touch name like Hyundai Motor and GE, it is incessantly not a wise plectrum to come up with a base with the grow of securing short term profit at the expense of sacrificing the brand equity. As a late comer to the card market, Hyundai card has experienced success by capturing big market share. And the good reputation of customer satisfaction is also an key asset. and so there is no elan for the com pany to sell or downsize their business. With less shining future in the local market, the company should start to c formerlyntrate to track into other markets in order to develop more profit growing points and remain as a leading brand name in the credit card business. The company has the experience in automobile business in overseas and applicable expertise in Korean credit card, those are the strength that can help the company to capture the opportunities in those less mature market at the similar minimizing the chance of failure.\r\nRecommendation\r\nTarget Markets\r\nMainland China, other developing South East Asia countries\r\n stead\r\nWith its tie with the branded name in Hyundai Motor, it should position itself as one of the gift brand in the market.\r\nMarketing shamble Elements ( 4 Ps)\r\nPrice: Should aim at customers at high end with high social status\r\nProduct: grim and Purple card are issued for high social status people in Korea, it can also be utilise in other markets\r\nPromotion: try on cooperation with branded companies such as winery, golf game club,etc. Try to offer card holder with incentive using the card to purchase\r\nPlace: Golf club, luxury suites\r\n evaluation: The company should conduct effective marketing survey at least once a year to evaluate the forcefulness of marketing campaign and the overall strategy\r\nConclusion\r\nFor prestigious brand name like Hyundai Motor and GE, it is always not a wise choice to come up with a solution with the aim of securing short term profit at the expense of sacrificing the brand equity. As a late comer to the card market, Hyundai card has experienced success by capturing larger market share. And the good reputation of customer satisfaction is also an important asset. Therefore there is no way for the company to sell or downsize their business. With less promising future in the local market, the company should start to concentrate to penetrate into other markets in order to develo p more profit growing points and remain as a leading brand name in the credit card business. The company has the experience in automobile business in overseas and relevant expertise in Korean credit card, those are the strength that can help the company to capture the opportunities in those less mature market at the same minimizing the chance of failure.\r\nBibliography\r\nHyundaiCard’s Marketing Strategy, by Chan Soo super C and Ronald D. Camp II, 2009\r\nHyundai internet home varlet (http://ir.hyundaicard.com/ceh/ho/cehho0101_01.hc)\r\nhttp://totalidentity.com/hyundai-card-innovation-growth-activation-rebranding\r\nhttp://www.economist.com/news/finance-and-economics/21589470-it-getting-harder-make-money-worlds-most-prolific-card-users-swipe\r\n'