Case analysis for Hyundai Card
Executive Summary
As a latecomer in Korean credit card market, Hyundai Card has gradually increased the market share since it entered the business in 1999. With its tie with Hyundai motor group, the company branded itself as "Hyundai M Card". It started off by attracting buyer to consider using the card to purchase Hyundai automobile by offering discount. In later stages, the company has adopted the customer segmentation strategy to diversify its target groups of clients.
With the emphasis on market segmentation based on different groups of card holders, utilizing clients ' card usage data, it has led to the unique customized service via alphabet card marketing activities. The strategy has led to great success, Hyundai Card received a Number One ranking in the Korea 's National Customer Satisfaction Index.
The Korean credit card market has experienced a period of overheating due to a rapid expansion in the number of cards, reduced standards for issuing cards, etc. However, in recent years, Korean government has tighten up the policy in the credit card industry, and it results in lower % returns for the card issuer. The market has become saturated, consumers are having too many different options in card for different needs. But the fact is that most people are only using 1 or 2 cards, and the rising cost of operating business also presents an area of concern for major card player like Hyundai Card.
Background
Hyundai Card is a credit card company in South Korea. Hyundai Motor Group and GE Capital are two of their largest shareholders. The company entered the credit card business in 1999 through the acquisition of Diners Card as a subsidiary. In 2001, the card 's name was changed to "Hyundai Card".
Credit card business in South Korea is a competitive market. According to a report of The Economist, Korea has the equivalent of 4.4 cards for every member of the labor force. And Koreans made frequent transactions
As a latecomer in Korean credit card market, Hyundai Card has gradually increased the market share since it entered the business in 1999. With its tie with Hyundai motor group, the company branded itself as "Hyundai M Card". It started off by attracting buyer to consider using the card to purchase Hyundai automobile by offering discount. In later stages, the company has adopted the customer segmentation strategy to diversify its target groups of clients.
With the emphasis on market segmentation based on different groups of card holders, utilizing clients ' card usage data, it has led to the unique customized service via alphabet card marketing activities. The strategy has led to great success, Hyundai Card received a Number One ranking in the Korea 's National Customer Satisfaction Index.
The Korean credit card market has experienced a period of overheating due to a rapid expansion in the number of cards, reduced standards for issuing cards, etc. However, in recent years, Korean government has tighten up the policy in the credit card industry, and it results in lower % returns for the card issuer. The market has become saturated, consumers are having too many different options in card for different needs. But the fact is that most people are only using 1 or 2 cards, and the rising cost of operating business also presents an area of concern for major card player like Hyundai Card.
Background
Hyundai Card is a credit card company in South Korea. Hyundai Motor Group and GE Capital are two of their largest shareholders. The company entered the credit card business in 1999 through the acquisition of Diners Card as a subsidiary. In 2001, the card 's name was changed to "Hyundai Card".
Credit card business in South Korea is a competitive market. According to a report of The Economist, Korea has the equivalent of 4.4 cards for every member of the labor force. And Koreans made frequent transactions
Bibliography: HyundaiCard 's Marketing Strategy, by Chan Soo Park and Ronald D. Camp II, 2009 Hyundai internet home page (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