Hyundai Motor America has not been a threat to other car manufacturers until now. The recession has pushed the South Korean automaker into the competition amongst popular car brands in the United States and Japan. Their sales have significantly increased in the past two years.
In the past, Hyundai has had a reputation as a "second-tiered brand". With people watching their pocketbooks and using the Cash for Clunkers incentive program, the brand appears to be more appealing to the struggling economy. People are beggining to question the extra money that other automakers such as Honda and the Ford Motor Company are asking. Hyundai passed both companies in sales last year and Hyundai fell just short in sales behind Toyato, GM and Volkswagon.
John Krafcik, head of Hyundai Motor America, said, the brand was well placed, “particularly in a recessionlike environment." This is definately the time for the company to flaunt their lower end but lower priced vehicles.
Hyundai is even offering a "luxury sedan", the genesis, that is priced low for "luxury", a term not usually associated with the company. The company is targeting business owners who had to lay off employees and want to project a better budget-friendly company while maintaing their lifestlye.
Also, recession marketing tactics are being used. Offering people who have been layed off a year to return their car and 3-month payment relief are examples that other companies such a Ford briefly borrowed.
This is a right-time and the right-place kind of marketing but it seems to be working ina very positive way for the company. The company appears to even have some lasting power as people are becoming more familar with the brand.
http://www.nytimes.com/2009/09/22/business/global/22hyundai.html?_r=1&ref=business
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