INTRODUCTIONIn 2009, HyundaiCards 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.

PROBLEM STATEMENTHyundaiCard 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 leaders 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 1990s 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. HyundaiCards 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 (Koreas 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 that has been placed on the credit card issuers by the Korean government and the significant market share that its main competitors hold, there are some good opportunities for HyundaiCard. The initial opportunity is their ability to move into the industry leader role. It is easier for a company to work its way into first place rather then trying to maintain first place. This is a huge opportunity for HyundaiCard because they have already employed very successful marketing strategies that helped them establish themselves in the industry and can utilize similar types of plans to push them to the top.Another opportunity is for HyundaiCard to expand globally. In comparison to its competition in S. Korea, Hyundai is a very well know brand name within the automotive industry across the globe. This brand recognition strength gives them the ability to expand into other countries where Kookmin Card and Shinhan Card could not because of low brand recognition. Because of the lower number of available credit card holders in S. Korea due to regulations, HyundaiCard has an opportunity to limit loss and even gain more subscribers in other parts of the world.

There are many threats to HyundaiCard establishing itself as the industry leader; however the most significant one is the growing regulations that governments are putting on the financial/banking/credit card industry. Due to the global economy taking a substantial down turn over the past 5 years, credit card consumers are utilizing credit cards much less and if they are using them there is an increase in late payments and defaults on the accounts. This poses a significant threat because while a company is trying to establish itself as an industry leader, the industry has taken a downturn and is shrinking rather than growing. These two circumstances combine pose a great threat to HyundaiCards ability to achieve its goal as becoming the industry leader.

SITUATIONAL ANALYSIS (DISTINCTIVE COMPETENCIES)HyundaiCard has one distinctive core competency that sets them apart from their competition and that is their ability to capture customer usage data through their eCRM system. By integrating their website with the eCRM system, HyundaiCard was able to provide tailor made services through their website to the consumers. They were able to promote marketing campaigns with online business strategies and competitive online services. Lastly, they were able to upgrade the e-mail solutions in order to achieve the companys objectives. Through this systems integration HyundaiCard was able to strengthen their customer relationship by analyzing customer tendencies and provide customized services for the individual credit card holders. They were also able to develop themed malls within the website based on card members tendencies. By integrating this customer information both online and offline, HyundaiCard has been able to connect with each card memberpersonally and utilize the data from the website and the actual channel customer data to assist the marketing team with decisions on their strategies moving forward. This is very essential because it allows the marketing team to utilize real time data for their marketing programs and keeps them ahead of the game when there are changes in consumer behaviors.

DEVELOPMENT OF ALTERNATIVESHyundaiCard has a distinct challenge to transform into the industry leader in S. Korea from being a strong competitor but mostly recognized as a follower. To accomplish this, HyundaiCard marketing has several strategies they could take in order to try to achieve their goal. One strategy HyundaiCard could take would be to revamp their customer base within S. Korea. Currently they are an established credit card provider, but there are other companies that hold more market share. These companies are typically more financial based companies in S. Korea and are well known as a financial services company. The marketing team could take the approach to drive marketing campaigns that emphasize HyundaiCards capabilities as a financial services company. HyundaiCard has already established a brand extension by entering the credit card market through its M card in the late 1990s and developing Hyundai Financial as a separate division. By implementing marketing strategies that focus their capabilities as a financial entity, they have the opportunity to utilize the Hyundai brand that is well-known and extend that awareness to their financial division.

Another strategy HyundaiCard could take would be by partnership or acquisition with another established financial company/credit card provider in S. Korea and target the Korean market specifically. An example would be aligning with one of the banks in S. Korea like Korean Exchange and develop a co-branded series of credit cards. This would allow them to utilize the strong brand of Hyundai and a well known brand in the banking industry like Korean Exchange to target consumers who do not recognize Hyundai as a suitable financial services company.

Another option would be for HyundaiCard to take the highly recognized brand of Hyundai and co-brand with key regional financial services companiesglobally. Instead of solely focusing on the Korean market, HyundaiCard could utilize their brand name, eCRM system in specific regions across the globe and a partnership with highly recognized banks like Citibank in the U.S., Barclays in the UK and Europe and Banco Santander in Latin America. These countries and regions are areas where the Hyundai brand is already recognized with their automobile sales, combining the Hyundai brand with those banks as well as implementing the credit cards similar to the way they entered the S. Korean market and deploying the eCRM system in each country or region, HyundaiCard would have the opportunity for tremendous growth outside of Korea as well as establishing themselves as the leader in Korea.

RECOMMENDATIONHyundai Financial has successfully established themselves as an industry leader in the Korean credit card industry with the HyundaiCard and its different product cards (M, M Lady, S, A, Black, Purple, etc). Through utilizing an impressive eCRM system in combination with its online websites they can obtain important customer information that has allowed them to specifically develop market strategies that adhere to their customers. However, HyundaiCard would like to move to the top of the Korean credit card industry and in order to do so they need to develop and implement some new innovative marketing strategies to overtake the competition. Therefore I recommend that HyundaiCard take the strategy of entering new markets across the globe by partnering and co-branding with established banks in the regions where the brand Hyundai is known from their automotive division.

ACTION PLANHow does HyundaiCard enter into foreign markets in order to increase their market share in Korea as well? Initially Hyundai financial should partner up with well established banks in various regions of the globe. An example would be partnering with Banco Santander in S. America and develop a co-branded credit card. I feel they should initially introduce the card in the same manner they did in Korea through their automotive customers. Offer the card to consumers who purchase a new Hyundai or Kia and give them incentives for using the card on parts, oil changes, accessories and apparel for the car as well as they could use the card for other purchase. Then by utilizing their eCRM system they can review the consumers purchasing habits, patterns and usage to determine which type of cards they want to launch into the market. In South America, Hyundai and Kia are economical brands in the automotive industry, therefore it may be more suitable for them to launch the HyundaiCard M, M Lady, W and U as these cards are catered to consumers that value shop. This model then could be deployed globally which would give the marketing team the ability to implement a strategy back in S. Korea that highlights HyundaiCard as an acknowledged credit card globally and could target and overtake its competition in S. Korea and vault HyundaiCard to the industry leader.