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Case study 2-HyundaiCard’s Marketing Strategy Goal Company’s goal was to strengthen its financial services,retail businesses and Internet fields S. W. O. T. ANALYSIS Strengths : ? Strategic alliance with GE Consumer finance (GECF)(gain cumulative expertise and Know-how, upgrade of creditability and financial stability) ? Unique, customized service via alphabet card marketing activities ? 12 finance shops ( all-in-one shop) ? Differentiated marketing based on consumer lifestyle ?
High sales volume per cardholder in comparison with the competition ? Enhanced Internet system environments and integrated customer relationship management ? Extensive use of online and offline channels to collect customer information Weaknesses: ? Latecomer (low customer counts) ? Web traffic website was low ? Low brand awareness ? Weak marketing communication ? Weak card services Opportunities: ? Cooperation with a well-known financial institution ? Cross-selling services [pic][pic] ? Legislation that supports the use of credit cards Alliances with well-known global brands (e. g. Wall-Mart, Tesco) ? Multi-functional credit card combined with conglomerates ? Credit card was the most common mode of paying products and services ? Credit card web sites gained nationwide popularity Threats: ? Korean credit cards Crisis ? Downsizing of company’s operation ? Tough competition from leading card players ? Constantly changing domestic market ? Non-compatibility with US market Customer Segmentation 1. General 2. Low 3. Middle 4. High ) How could Hyundai Card, a market follower, successfully position itself as a market leader? ? the alliance with GECF, through which gained cumulative expertise and know how ? segmentation strategy ? usage of websites (on-line marketing campaigns) ? strengthening of internal administration regarding customer service ? guarantee safe online transactions ? marketing strategies to force cardholders from low to high usage frequency of cards 2) Could HyundaiCard’s marketing strategy keep enhancing its competitive edge in the market ?
In case the company adopts the followings, it could enhance its competitive edge in the market. ? cooperation with well-known financial organizations [pic] ? cross selling services ? alliances with well-known global brands ? continuous development of new products and services ? more analytical segmentation of the market 3) What future strategy would be best for HyundaiCard? ? focus on the affluent cardholders (+ enhancing profitability, – limitation of customer basis) ? expansion to the international market (+ infinity customer basis, – risky strategy) ? oyalty privileges to “healthy” and profitable cardholders (+ retaining profitable customers, – cost) ? cooperation with financial institutions to enhance customer service (+ empowered sales network, enhancing distribution channels, – lack of flexibility in decision making) ? Consider the option of merging with one of its main competitors (+ generate a greater market share, strengthen it Brand name within the domestic market, – minimise its flexibility in decision making, functional issues related to merger & acquisitions. ) [pic]