Case Study

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PAUL Y J KIM

HYUNDAI AND KIA:
AUTOMOBILE stigmatization IN CHINA
It was a hot summer morning in August 2006, and Mr. J.M. Noh, president of Beijing
Hyundai Motor Company (BHMC), was in his site in Beijing, China. He was preparing for
a quarterly business criticism meeting, to be held at the end of the month at Hyundais Korean
headquarters. He was troubled by the slow sales of NF Yu Xiang, the that locally scoreed
premium sedan in the associations portfolio. Since its launch in September 2005, sales of NF
Yu Xiang had remained disappointingly low. In contrast, the four international brands
launched in preceding years had brought awesome success to the company, elevating
BHMC quickly to the position of fourth-largest automaker in China. Noh was wondering
whether the obscure sales of NF Yu Xiang had resulted from problems in local branding. He
recalled his meeting with Hyundais planetary marketing officer, Mr. J.W. lee, at the Korean
headquarters two weeks before. They had talked about the brand provide1 study of Hyundai and
Kia in China. The Hyundai brand still had significant manner for improvement in converting
consumer awareness into brand consideration in the purchase process.




These were the same issues facing Mr. H.K. Lee, president of Dongfeng Yueda Kia (DYK),
in Shanghai. DYK was a joint venture of Hyundais sister company, Kia Motors, with two
Chinese partners. Lee was stunned by the drastic sales decline of his top-selling brand,
Tianlima, a locally branded compact car. The companys forward-looking launch, Cerato, had quickly
cannibalised the sales of Tianlima, resulting in limited overall business growth. The weak
power of the Kia brand, lagging considerably behind its Chinese competitors, as shown in the
brand power study, demanded his immediate attention. At the upcoming company board
meeting in Shanghai, he would have to present cover plans to...If you want to get a full essay, order it on our website: Orderessay



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