Case analysis for Hyundai Card

п»їExecutive Summary

As a latecomer in Korean credit card market, Hyundai Card has slowly but surely increased the market share since it entered the business in 1999. Having its tie with Hyundai motor unit group, the organization branded itself as " Hyundai Meters Card". That started off simply by attracting customer to consider using the card to purchase Hyundai automobile by offering discount. In later levels, the company has adopted the consumer segmentation technique to diversify their target categories of clients.

With the focus on market segmentation based on distinct groups of credit card holders, utilizing clients' greeting card usage info, it has resulted in the unique personalized service by way of alphabet cards marketing actions. The technique has led to great success, Hyundai Card received a Number One position in the Korea's National Customer Satisfaction Index.

The Korean language credit card industry has skilled a period of overheating as a result of a rapid development in the quantity of cards, lowered standards for issuing greeting cards, etc . Yet , in recent years, Korean language government provides tighten up the policy in the credit card industry, and this results in reduce % results for the card issuer. The industry has become saturated, consumers are having too many different choices in credit card for different requires. But the fact is that most people are just using one or two cards, as well as the rising cost of operating organization also presents an area of concern for main card gamer like Hyundai Card.

Background

Hyundai Card is a visa or mastercard company in South Korea. Hyundai Electric motor Group and GE Capital are a pair of their largest shareholders. The corporation entered the credit card business in 1999 through the acquisition of Diners Card being a subsidiary. In 2001, the card's identity was changed to " Hyundai Card".

Credit card business in Southern region Korea is a competitive marketplace. According into a report in the Economist, Korea has the equal of 5. 4 greeting cards for every part of the labor force. And Koreans made regular transactions with credit card, usually, each Korean swipes greeting card for 129. 7 occasions in 2011. The number of has very well exceeded People in the usa (77. 9) and Canadians (89. 6).

Hyundai Card is the last biggest visa or mastercard issuer in South Korea. As per numbers in May 3 years ago, it records a on the lookout for. 96% reveal of the market. The Korean credit card market is led by Koomin (16. 21%), LG ELECTRONICS (16. 08%), Samsung (12. 33). Among the major players in the mastercard market, Hyundai is considered like a latecomer.

Current Scenario

Hyundai cards has ongoing to increased its business in the competitive Korean industry. As per numbers at the end of 2012, Hyundai Card a new market share of 14. 3%. And Hyundai Card in addition has received a good market standing being ranked as Number 1 in the Korea's National Client satisfaction Index.

Critical Marketing Issue

The credit card industry has experienced an modification period. Mastercard company knowledge a growth inside the number of later payment and bad debts. And the card industry has become saturated, as there are way too many card items in the market, which card attracts different need. In fact , most card holder only uses 1 or 2 credit-based card to purchase. Another is the politics factor of the tightening government policy, it has also present a problem to card issuers because they are having reduce % of return available. In 2012, the government barred credit card companies coming from extracting larger fees via smaller merchants. And it also help to make it much easier for buyer to compare interest rates around products and harder for less credit worthy borrowers to spend further than their means. As a result, various card giving companies started to cut this and become even more conservative in doing their card business.

Alternative Solutions

1 . Try to move out in the business selling off it into a suitable buyer

Advantages: If the business can find the ideal buyer then sell the business at a good price, once and for all, the company does not need to encounter the problem...

Bibliography: HyundaiCard 's Marketing Strategy, by simply Chan Soo Park and Ronald D. Camp 2, 2009

Hyundai internet homepage (http://ir.hyundaicard.com/ceh/ho/cehho0101_01.hc)

http://totalidentity.com/hyundai-card-innovation-growth-activation-rebranding

http://www.economist.com/news/finance-and-economics/21589470-it-getting-harder- make-money-worlds-most-prolific-card-users-swipe