Hyundai Card Co.Ltd.FUNCTIONAL MANAGEMENT CASE STUDYARI NUR WIDIATANTI - 1306356116ARIADI HERUTOMO - 1306356122ATHANASIUS G.M. - 1306356160AULIA ICHWAN - 1306356173AULIA YUNIARTO - 1306356186B. BETTY MARIA CHRISTINA - 1306356223

CONTENTSouth Korea OverviewHyundai Card Case StudyHyundai Card HistoryCredit Card Market in South KoreaHyundai Card OwnershipHyundai Card Marketing Strategy in South KoreaHyundai Card PerformanceAnalysisConclusion & Recommendation

SOUTH KOREA OVERVIEW

SOUTH KOREA OVERVIEW

SOUTH KOREA OVERVIEW

HYUNDAI CARD HISTORY1999HYUNDAI entered competitive South Korea Credit Card Industry2001Acquired Diners Card2003Launched HYUNDAI CARD M2004Selected as Koreas most respected enterprise2005Established strategic alliance with GE Consumer Finance2006Renewed Alphabet Card marketingRanked 1st on NCSI in Credit Card category

2008Received ISO27001 for Customer Information Protection Certification2010Korea Investors Service credit rating upgraded to AA+2011Selected as the Best Design Project in Korea for Card Design of Hyundai

CREDIT CARD MARKETCredit Card Market Share & Industry Characteristics in South Korea

OWNERSHIP

Customer Segmentation & Product DiversificationMARKETING STRATEGY

Customer Segmentation & Product DiversificationMARKETING STRATEGY

MARKETING STRATEGYMaximizing Creative Marketing to Increase Brand-Awareness

MARKETING STRATEGYPRIVIA - an internet-based shopping mall exclusively for HyundaiCard membersSpecial Promo

MARKETING STRATEGYHyundaiCard Opened World Largest Design Library (Gahoe-dong , 2013)Over 11,500 design books and reference materialsLots of limited edition collections as their claim that 70% of the books are rarely procured

Strategic Choices for Challengers in Growth MarketsMARKETING STRATEGY

Electronic Customer Relationship Management (eCRM)eCRM collected and analyzed data regarding HyundaiCard customers. eCRM analyzed customers online activities in categoriesHyundaiCard integrated online and offline information provided customer data and maximize the potential of marketing campaigns.To raise the eCRM quality to a higher level, HyundaiCard intended to :Provide effective tailor-made service through its website for HyundaiCard consumersPromote marketing campaigns with suitable online business strategies and competitive online servicesUpgrade e-mail solutionsMARKETING STRATEGY

Marketing Applications for Digitally Networked WorldStage in Customer Direction ofDirection of Direction ofexperience processinformation flows product flowscash flows

Customer insightH CProduct promotionH Cand brand buildingTransactionH CProduct Delivery H CHCustomer supportH C H C H Cand service

H = Hyundai CardC = CustomerMARKETING STRATEGYC

Future Plan : HYUNDAI CARD CHAPTER 2MARKETING STRATEGYHyundaiCards new business strategy plan started since July 2012

Tagline : SIMPLE, NO WORRY, CONVENIENT Discontinuing the issues of existing alphabet cards but black, purple, VIP cards and four other cards Confirmed the launching of two types of membership (point) cards and cash back cardsSome sources predicted that Hyundai Card will expand the benefits of their new card and will provide wider range of services to the customers

(Source: http://www.advancedtechnologykorea.com )

In average, sales volume for Hyundai Card increased around 25% every years for 2004 until 2008PERFORMANCE

In average, number of cardholders increased around 26% every years for 2004 until 2008PERFORMANCE

HyundaiCard is the 4th largest credit card company in South Korea (source : www.Hankyung.com, May 2007) which was supported earlier by Hyundai KIA Automotive Group & later on (since 2005) by GE Consumer Finance (GECF)HyundaiCard M is the credit card with the largest number of user in South KoreaTraffic for HyundaiCard website in 2005 & 2006 was numbered 3rd among credit card companies in South KoreaHyundaiCard is always the top 1st priority credit card company to be approached by music promoters as the main partner in inviting world-famous artists to South KoreaANALYSISSWOT Analysis for HyundaiCard

STRENGTH

HyundaiCard started from the lowest in terms of number of customers compared to other credit card companiesAlthough achieving remarkable success locally, in terms of brand-awareness growth, Hyundai[Card] has a considerably slow movement internationally, especially when compared to other top South Korean credit card companies such as Samsung & LG whose brands are already more well-known globallyHyundaiCard is considered a relatively new-comer in South Koreas credit card industry

South Korean government is actively endorsing & supporting the growth of credit card industry through various government regulations such as ensuring the security of credit card uses & giving out harsh sanction to stores that do not accept credit cardIn terms of statistics, each South Korean holds 3,8 credit cards but still this number is 2nd best to the US (5,3 credit cards/person), meaning there are still room to develop the market even furtherANALYSISSWOT Analysis for HyundaiCard WEAKNESSOPPORTUNITY

The ever-increasing number of users with bad credit card historyWar of Creativity caused by the high atmosphere of competition in South Korea credit card industry (currently entering adjustment period) where all the players involved are forced to actively looking for creative outputs in order to increase their market share Sustainability issue of their products. HyundaiCard CEO, Ted Chung, himself, stated that, The alphabets & numbers on cards were sensational in the market, but their sustainability was uncertainThe high-paced-expansion of credit card industry could cause lack of standardization control in terms of card issues

ANALYSISTHREATSWOT Analysis for HyundaiCard

HyundaiCard is using the approach of Share-Growth Strategies for Followers in promoting their credit cardThe strategy used here is the Encirclement StrategyHyundaiCards strategies as a follower are:Emphasizing on their unique differencesFocusing on their customers lifestylesDiversifying their products (Basic, Alphabetic, Premium, Solutions, etc)eCRM Strategy:Personalized service adjustments for all credit card holderGrouping their website/internet stores based on card type, e.g.: shopping, insurance, & travelUpgraded design & GUI, connected to HyundaiCards website, family site service & light-sized-contentMaximizing their databaseExtensive viral & internet-based-promotionANALYSIS

HyundaiCards Encirclement Strategy is a brilliant decision since they were not the first one in the market (pioneer) where as a follower, HyundaiCard went through extensive market study & came up with diversified products that are able to facilitate various types of lifestyles in South KoreaCONCLUSION & RECOMMENDATIONAs anticipation of the matured & highly-competitive local market in South Korea, HyundaiCard should start trying to expand their business overseas especially in developing countries where credit card industry is still at its earlier stages. This must soon be done because their other competitors like Samsung & LG are already more well-known globally which make them one step ahead

CONCLUSION & RECOMMENDATIONExpansion Target : Asia Pacific RegionDoubled Number of users

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