Hyundai Motor Co. Tunaround
Essay Preview: Hyundai Motor Co. Tunaround
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1. (Michelle Alifano)
Founded in 1967, Hyundai Motor Co. has grown-up into the Hyundai Motor Group, which was classified as the world’s fifth-largest automaker since 2007. (Hyundai Motor Company)
In 1988, Hyundai was at a crossing in the U.S Market. After a decade of diminishing sales and troublesome quality worries, Hyundai was in desperate need to turn its brand around, so the company took bold moves. Moreover, in one of the new tactics needed, they came up with a 10-year, 100,000-mile warranty. Hyundai presented this proposal to provide consumer value, to show the customers that it is a trusted product with good quality. They delivered this offer to gain new brand image and brand awareness. This warranty has a minimal relation of post-purchase dissonance, which is the uncomfortable feeling that occurs following a high involvement decision.
Because buying a car involves a high involvement decision it relates to post purchase dissonance, however, the warranty royalty certify customers that they made a good choice because they are covered for 10 years as well as 100,000 miles. The warranty offered wouldn’t be as important today than a decade ago because back then the warranties weren’t very current like nowadays.
Additionally, This particular warranty gives the consumer the ability to buy the product with more confidence. Today this warranty is seen as very important because it provides the customers with great assurance of their high involvement decision.
2. (Emilio)
The dictionary defines loyalty as having a strong feeling of support or allegiance. In this case, loyalty is when a consumer sticks to one brand in particular when buying a car. By making the improvements in adding a 10-year, 100,000 mile warranty, reconfiguring their price and product line, they have made it easier for consumers to stay loyal to their brand, and also attracting new ones.
I believe that the measure reported in the case captures this type of loyalty. Not only did they increase their sales from 90,200 in 1998 to over 500,000 in 2010, but they also beat the competition by having the highest loyalty rate in 2011. This was in terms of current owners who were researching Hyundai as their next vehicle. In 2013, Hyundai partnered with 25 of the top college football schools and they launched a College Football loyalty campaign. They created an in stadium experience called the Fieldhouse where they have used refurbished shipping containers and converted it to a mobile tailgating experience. They used an RFID chip to track the movement and experience of fans as they used the Fieldhouse. At the end of the season, 71% of their respondents stated that the experience has improved their opinion about Hyundai. These campaigns and improvements have made Hyundai the #1 in customer loyalty 5 years in a row from 2010-2014.
3. (Sara)
Hyundai’s efforts thus far have resulted in an overwhelming response from consumers. The company has emphasized quality in its turnaround; it provided a 10-year, 100,000-mile warranty and improvements in quality of the vehicles. Consumers previously held negative views on the brand, viewing its company as cars that fell apart easily. Hyundai did effective market researching before launching a change in its brand, discovering that midsize car buyers want safety, quality, a good value and a fair price. Consumers of the Hyundai brand wish to have a car that fits their lifestyle, and the textbook states that research shows that Hyundai consumer’s lifestyles are described as “authentic”. In response, Hyundai offered a vehicle that was reliable and easily accessible. The brand has focused on taking a utilitarian approach rather than a value-expressive approach in their overall strategy and marketing efforts in order to maintain strong customer loyalty. Customers are offered a fair value for great benefits, which is what Hyundai’s target market is after. This has created an effective business strategy in which Hyundai is thriving.
4. (Valerie)
The VALS segments U.S. adults into eight distinct types using a specific set of psychological traits and key demographics that drive consumer behavior. The graphic representation of the VALS is known as the U.S. framework, which clearly illustrates the eight types and two critical concepts for understanding consumers that are primary motivation and resources. The VALS basically assigns a VALS type to each individual based on its survey results. VALS is an excellent source that provides clients with a fresh perspective by effectively “putting them inside the head” of their customers. Primary motivation is divided into three different categories including Ideals, Achievement, and Self-Expression. All these motivations provide the main basis for communication with the VALS types and a variety of strategic applications.
In the Hyundai’s Turnaround case, Hyundai was facing a decade of dwindling sales, which caused them to implement a new strategy. “The changes were dramatic and sales jumped up to 500,000 vehicles in 2010.” Hyundai was beating