Presented by Shraddha Shah Ruchi Wadhwa

was established in 1999. sponsored by Hyundai Kia Automotive Group. The company provides credit card products and services to its customers in Korea. Hyundaicard plans to enter into various international markets through the launch of its products in the US. Company‟s strategy focus is to have a diversified and stable funding portfolio. Hyundai Motor Group acquired Diners Card as a subsidiary and changed the card‟s name in 2001 to “Hyundai Card”. .     Hyundaicard. Europe and China.

the Hyundai Motor Group owned 53. 2011. GECF invested 678.     In 2005.00% of the Company‟s shares capital. a unit of General Electric (GE).98% and GE Capital 43. The partnership with GECF has enhanced Hyundaicard‟s management structure. Hyundaicard introduced GE‟s advanced financial product planning and risk management systems. thus becoming the largest shareholder. Hyundaicard had a strategic alliance with GE Consumer Finance (GECF).3 billion won in the firm. . As of December 31. financial profile and competitiveness.

In February 2006. and then in 2008. targeting the top five percent of cardholders. Hyundaicard was the first company in Korea to introduce card brand marketing. Hyundaicard is Korean market leader in premium cards and is one of the largest card issuers in the country. .05% of cardholders. premium VIP card program and card design marketing. Hyundaicard launched the Purple Card. the Black card.     As at the end of 2011. In May 2003. targeting the top 0. Hyundaicard launched its flagship credit card Hyundai Card M and in February 2005. using „alphabet marketing‟. Hyundaicard had a market share of 14. The Red Card. an exclusive premium brand.30% in the domestic credit card market. the first super-premium brand.

1969 issued by Shinsaegae Department Store to Samsung Corporation employees. . The purpose of issuing the credit card was simply to expand the sales volume (transaction volume) in department store. Kookmin in 1987. in 1978. 1980-1990 An aggressive growth of credit card industry was started in 1987 when the Law of Credit Card (currently the Financial Law of Credit Business) had amended. there were four mono-line credit companies established. the type of credit card was divided into Mono-line and Bank credit cards. Since then. 1970-1980 A specialized mono-line credit card company was Korean Express Credit Card Company. and Samsung in 1988. LG in 1987. For example. At this stage. Korean Exchange Bank Credit Service (KEBCS) in 1988.      1960-1970 The first card was appeared in July.

South Korea‟s credit card companies offered competitive incentives like Cash Discounts. Point Cash and Pre auto financing service. Interest-free Installments. in order to entice credit card customers to use their products frequently. . Air mileage Service. A great deal of credit card use was tied to Retail Chains or Conglomerates / Business Corporation.  A unique characteristic of the Korean Credit Card was its multi-functionality.

  Information technology was an important growth engine for the South Korean economy and had expanded rapidly since the early 1990s. The use of credit cards (38.was the most common mode. followed by cash and online banking services. In particular.70%) . . utilized by South Koreans to pay for products and services. South Korea was a technology-savvy country in which electronic payment was easy and popular.

developed high-end technologies. . The member stores were reimbursed within three days. The affiliated member stores were equipped with electronic authorization and settlement technologies.    Korean credit card web sites had gained nationwide popularity. using the VAN service. This convenience helped the issuers attract more affiliated stores. Korean credit card companies. resulting in various new services and goods. appearing on the Internet.

The average South Korean had at least Four Credit Cards. thanks to the support and an encouraging policy by the Korean government since 2000. encouraging credit card use. The Korean government made the acceptance of the credit card mandatory and penalized stores not accepting the credit card. There were sensational credit card lottery events and tax incentives for credit card usage. The Korean government encouraged consumers to use credit cards to stimulate private spending and secure more taxes.000 thousands.000.000.       South Korea was one of the world‟s most dynamic countries. . The membership stores exceeded 15. Nos of credit card issued exceeded 100.

Teen Group Card. Another variety was credit cards issued by banks. . LG (Shinhan) Card and Hyundaicard. launched its credit card business in 1980. Transportation Card and Cellular Phone Card. The aforementioned companies issued credit cards. With 9. the country‟s largest bank. customized for Korean individuals – Lady Card. Kookmin bank. The major mono-line credit card issuers were Samsung Card. Revolving Card.      The Korean Credit Card market was characterized by rapid growth and intensified competition.3 million card holders. Kookmin Card established its leadership position in the industries.

       I) Customer Segmentation The Innovative marketing Strategy focused on customers lifestyles. the company issued the new “Hyundai Card S” for women in their thirties. status and purchasing methods Customers segmentation helped in collecting data according to their age. Thus. . having unique and creative design. etc. Customer segmentation filtered each group‟s usage. Middle and High) according to credit card payment. based on consumer lifestyle. S. Hyundaicard formulated “Alphabet Marketing”. gender and the main location of purchase (shops.). restaurants. Low. U. W. gas station. Hyundaicard executed the company‟s alphabet marketing strategy by launching Hyundaicard M. Hyundaicard divided its card members into four categories (General. K and A.

accurate information about Internet customers and their transactions.    eCRM was introduced in the most widely used credit card websites in Korea. The database provided useful. . eCRM collected Hyundaicard customer information. Establishing an effective eCRM system could potentially strengthen Internet services and allow the company to execute Internet marketing strategies.

Hyundaicard‟s first finance shop opened for business in 2006 in Seoul. By 2009.   The finance shop was the place that enabled Hyundaicard customers to enjoy all-in-one service. the company had the network to 12 shops nationwide. South Korea. getting financial consultation services and enjoying an ambience created by world-famous designers. .

. maximized the potential of marketing campaigns. Hyundaicard enjoyed the synergy effect of online and offline channels for customer information.     Hyundaicard integrated online and offline customer data. It maximized the two channels (online and offline channels) to increase customer profits and strengthen customer relationships. The integrated of online and offline information provided accurate customer data to CRM Business departments and related administrators. The integrated information could then be shared by the whole company.

Hyundaicard was named Korea‟s Most Admired Company for the second consecutive year out of all Korean credit card companies. through an innovative marketing strategy.33 million in 2007.96% and the number valid card holders were 6.  Hyundaicard market share stood at 9. . In 2007.

.952 2.498 49.542 11.970  Backed by its stable financial results. The financial highlights for the year 2007 are as under: Sr No 1 2 3 4 5 Particulars Operating Revenue Net Income Total Assets Total Liabilities Total Shareholders‟ Equity US dollars in thousands 11. Hyundaicard was slowly becoming a brand name in the international markets.512 37.

Hyundaicard will have to realize sustainable growth by further developing its differentiated marketing strategies. all of whom are leading players in the South Korean credit card industry. .    Hyundaicard is facing tough competition from Kookmin Card. Hyundaicard will have to increase efforts to create new. It will be important for Hyundaicard to continuously develop advanced marketing strategies. to maintain current customer relations and attract potential customers. additional value in the constantly changing domestic market. Samsung Card and Shinhan Card.

Hyundaicard had fewer customers and sustained moderate losses. credit card companies began witnessing an alarming growth in the number of late payments and users with bad credit history. reduced standards for issuing card. etc. due to a rapid expansion in the number of cards. In the loan services.    Korean credit card market experienced a period of overheating. The Korean credit card industry was a bubble on the verge of bursting. .

to catch up with the market leaders. so as to become a global player. will have to generate an aggressive marketing strategy. Such strategy will perfectly address each customer‟s lifestyle and needs.      Hyundaicard. Internationally. Hyundaicard will also have to extend its network of alliance with major players. Hyundaicard will have to adopt differentiated market strategy. in various industries. . by promoting cross-selling and expand customized services. as a market follower. will be vital. by solidifying with GE. raising the status of the company. As a brand in the international market. Hyundaicard will have to create additional value. Hyundaicard will have to break into the foreign financial markets.

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