Brain or Money? Hyundai example

Mitesh Mishra
Nov 4 · 2 min read

In every company there’s a budgetary process through which every manager tries to have more money for any future upscale in projects.

But let us understand here with an example, where we need to use less money and more brains.

So, Hyundai, a south Korean automobile company in 2009 doubled its market share in US while the market was declining -36%, Hyundai grew +4%.

Remember there was NO change in car model, NO change in prices, NO change in distribution but just one Change a piece of advertising making a promise: “if you buy a Hyundai car and you lose your job in next 12 months, then give us the car back. NO questions will be asked”.

Guess what the sales boomed, and we all know the market of 2009 of US.

Many big established firms didn’t think this would actually work for Hyundai, but Hyundai understood something!

Their thought was in different line, like in the time of deep crisis some people still need a new car. Some people still had the money to buy a new car but only one obstacle they were afraid to lose the job.

What Hyundai did in the market? They created a psychological pressure on customer.

The first 5 months the sales boomed no car was returned by any customer, after 12 months there were only 95 cars had been returned which was very small cost to such giant automobile manufacturing company.

I certainly believe it was the most efficient way for that time a company could have done in selling its product and the same effect has been proven for Hyundai as it kept growing in 2010–11 and had a stable market in 2012.

What we learn from this is in any market there are substantially 2 important things.

PRODUCT & PRICE.

The fast-growing market and our own competitors know how to bring the same product and we have less differences to point out among them.

With prices if you are not practical to the market value you may lose the top position and go down and down.

So, one should have a right product with a right price, and one should also have something more to give to their customers with their products like Quality, Trust, Service, policies which are customer centric etc.

#hyundai #automobilemanufacturing #economy #Indainbrands #crises #businessmangement #mspeak #businessowner #ruleofbusiness #gotomarket #finance #techincalfinance #organisationrules #costofbusiness #capital #employeeengagements #peoplemanagement #productmanagement

Mitesh Mishra

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A step towards self introspecting https://www.linkedin.com/in/miteshmishra26

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