In 2009, HyundaiCard’s vice-president of marketing Jae-Woo Park met with several other marketing managers to discuss new strategies for the HyundaiCard in Korea. HyundaiCard entered the Korean credit card industry in 1999; they initially started with their “M” card that was targeted to their customers buying an automobile. This card proceeded to be a success and jump started their dive into the credit card industry to a full. Although the card was a success, HyundaiCard suffered from minimal customer count which is a key to becoming one of the leading players within the credit card industry. However, as a result of an innovative marketing plan they were able to establish themselves as on of the market leaders in the Korean credit card market.
HyundaiCard was able to establish itself into the Korean credit card market as one of the leaders by implementing an innovative marketing plan and following some of the other leader’s actions within the industry. However over the past years, the market has become more competitive, partnerships and acquisitions has placed other credit card companies ahead of HyundaiCard and they are faced with the challenges of maintaining its position in the industry. Therefore with new laws regulating credit card issuance, other credit card companies grasping a better hold of the industry and HyundaiCard currently positioned as a market follower, how can they position themselves as a market leader by utilizing newer and fresher marketing strategies?
SITUATIONAL ANALYSIS (SWOT)
HyundaiCard established itself as a key market player in the Korean credit card industry. They were able to achieve this due to their innovative marketing plan. However there are other factors that helped established them as a key player in the market. One of those being the name brand recognition of the card, Hyundai is the major automotive producer in Korea and is well recognized as a brand throughout Korea and the world. By utilizing that name brand power, HyundaiCard was able to enter the market through an effective channel by utilizing their automotive customer base to launch their card. HyundaiCard other key factor that strengthened them as an industry player is the credit card market in S. Korea. Credit cards were introduced into S. Korea in the 1978 by the Korean Exchange Bank in partnership with Visa. But it was between the 1990’s and 2002 when the credit cards issued in S. Korea increased from 10 million to 100 million. This large increase in customer base made it simple for the emerging credit card companies in S. Korea to pick up substantial market share. This increase in customer base landed them as the second highest per capita credit card issuances only trailing the United States.
There are several challenges that face HyundaiCard as it tries to position itself as the industry leader. HyundaiCard’s weakness is that they have modeled themselves after some of the other leading credit card issuers and therefore are stuck in the position as a follower in the industry. Another weakness is for HyundaiCard is that they are utilizing a brand name that holds great recognition in the automotive industry as well as others, but does not hold the same significant strength as a brand amongst the credit card industry. Their competitors Kookmin Card, which is the largest bank in Korea, Samsung Card whom are the third largest card issuer and Shinhan (LG) Card which is backed by their parent company Shinhan Financial Group all have much better brand recognition as a credit card issuer. These companies pose a challenge to HyundaiCard because of their ability to partner up with other key companies like Samsung did with American Express and Shinsaegae (Korea’s largest department store). Along with a few others, these two weaknesses of HyundaiCard pose a challenge to them becoming the industry leader in Korea.
Although HyundaiCard faces challenges like the regulation...