Hyundai brand reputation

[Simonwpb]

Hyundai's biggest problem in the US is brand image. Auto reviews tend to read "it's an awesome car and great value at any price, but..."

Do you think the Genesis sedan and coupe will significantly change the perception of Hyundai in the US, or of Korean made products in general? Do you expect a paradigm shift in brand perception or do the Germans and Japanese really have nothing to worry about?

 

[GrandPrix08]

I have posted about this number of times, but in my opinion, if the car is being sold under Hyundai and their flying H logo, it is a proven fact that the sales will go down half of what it will sell if it goes sold under different brand. Part of the reason that I think they should have invested the needed money to create a seperate premium brand for the Genesis like Toyota did with their Lexus. I know it will cost them bunch of money(some 2.5 billion dollars), but it is a gamble that CAN work for their advantage if they do a good job of providing their potential customers with the red carpert treatment synonomous(sp?) with most premium brands. Sure, it will take time for it to get noticed and sure, they will lose the money at first, but that's where the marketting team come in and do their part and slowly work their way up. That's what Toyota did to make them at where they are now. I don't remember if their first model, LS400 was hyped up this much as Genesis was when they were first introduced, but Hyundai really should have taken a different approach with this Genesis line, especially if they want it to succeed.

Sure the car will sell as is, but the name Hyundai will play a role as a barrior more than an assistance for the sale of the car. Selling at a much slower pace than they have anticipated, especially where the existing Hyundai dealers are playing markup games and even adding the garbage called 'Market Adjustments' premium on the official MSRP which everyone knows about already, that will NEVER do it's part to sell these cars to the American car buyers. Part of the reason that I have said earlier in other threads, that the cars like Genesis is just too early to be brought up into the North American market. It isn't too late to bring it in when Hyundai name gets established more and most people don't see it as just another 'cheaper alternative' to the big boys. It takes time, and they should have brought it AFTER they get their reputation build. I can understand they want to upgrade their credibility with this car, but I think it's just a rushed approach that may not work fully as they intended.

One thing I am worring about the Genesis since it gets sold under Hyundai, that what if, the Genesis face a same fate as the VW Phaeton did. Which didn't do a good job since it shared the VW showrooms rather than its' well deserved, seperate, new luxury Division.

Well, my 2 cents.

 

[BaywayRic]

I would say they need to worry. Watch the Sonata Plant video elsewhere on the site and you will see the HUGE investment Hyundai is making in quality. The thing that will kill them is the dealer experience. My guy is an ex-Mercedes guy, and he "gets it." Very good experience for me so far. The dealership itself is shabby city. Wouldn't go near it in a suit. General floor sales folks are still in Elantra class. 800 number customer service, while polite, is clueless about Genesis.

You've seen talk on the boards and in reviews about "separate areas" for Genesis, and "select salesmen." If they make that happen with the 87mil launch budget they will make a dent. If they piss it away on Super Bowl commercials, the others can relax for awhile, IMHO.

 

[SWilliams]

When I first heard about this car, I wondered, who would buy it. Then once I saw it and sat in it I realized that it was me they were targeting. I admit it my perception of Hyundai goes back to the Rodney King era, when he got caught doing 85 mph in his Exel, and I remember thinking, "I didn't know a Hyundai could go that fast." I will now say that anyone who thinks this car is a joke, has clearly not seen one in person. When I see people comparing them to M300, Maxima, even Infiniti G35 (I have a G35 Coupe), I think, they haven't seen one. I look at a Maxima and see a Nissan. If it was an Infiniti it would be 8-12 grand more. The Genesis is a Genesis, it just still has the Hyundai flying H. It definitely (for me anyway) competes in styling and fit and finish with Lexus, Acura and Infiniti, and styling with BMW and Mercedes.

The previous post about the Phaeton, my thoughts on this is I believe they were asking around 80 grand (don't quote me on that), in which case why would I not just get an Audi. I would equate this to Toyota coming out with a $70,000 Avalon, and wonder why no one is buying it when you can have a Lexus instead. As for should they have come out with a luxo brand? It would have made it easier for the Hyundai haters, and badge conscious (BMW, Lexus) buyers to feel good about their purchase, but also comes with a huge investment, and if their strategy pays off will raise the image of their entire line-up.

I will also say that Hyundai's strategy of selling this much car for the listed MRSP is smart, I'm just hoping the dealers don't screw it up by forcing the "market adjustment". 40 grand for a loaded V6, great deal, 45 grand (47 with custom wheels) not so much and would keep me from pulling the trigger.

When evaluating cars for my newly licensed daughter, my list was Civic, Mazda 3 and Toyota Corolla. Now I find myself with the previoulsy off the radar Elantra as the top choice.

The wife however is still, "Eeew, a Hyundai?". I'm guessing once I take her to see the Genesis, that will all change.

 

[hyundaiorbust]

Does it matter? Perhaps maybe for resale value ... but I prefer that Hyundai doesn't get the brand reputation that Lexus, Mercedes, etc. does, cause then there's potential for the price to go down and for me to buy, cause yeah it's a good looking car, and I would want one (just hoping to test drive now). Really, who doesn't want to get a really nice car at a low price and laugh at all their friends and family for buying a brand name more expensive car that's pretty much the same thing (or worse), but you got yours for much less.

 

[Sal Collaziano]

The Genesis will change the brand perception of Hyundai. It's already happening and most people haven't even seen a Genesis yet (including myself). The Genesis is going to open the door for Hyundai to create a new luxury division for their next full-size luxury offering.

The Volkswagen Phaeton failed because it was too expensive. Too close in price to the cars it competed with.

 

[RichieRichLancair]

When I first heard about this car, I wondered, who would buy it.

The wife however is still, "Eeew, a Hyundai?". I'm guessing once I take her to see the Genesis, that will all change.

I had the same feeling for Hyundai. I was stuck in an airport rental agency at 11:57 and they closed in 2 minutes. All they had left was a Hyundai Sonata, the only reason I took it was because they promised me a real car tomorrow during my lunch hour.

I'd never been in a Hyundai dealership, I thought they were junk. Once I got the car I was very impressed. I ended up keeping the Hyundai for the 2 weeks I was there.

When I got home I gave my S80 T6 to my son and I bought a 2005 Elantra. Just in case it was a fluke, I wouldn't be in for too much money. I bought a new Sonata in 2006, then my Azera. I haven't had any of these in a dealer yet. Absolutely no problems. Hyundai is the only cars I have ever owned that hasn't been in the dealer for something.

I love the reaction of people when they ride in my Azera. Wow! I didn't know Hyundai built cars like this. This is the nicest riding car. If it someone's first time in a Hyundai, they go nuts. I get stopped all the time at gas stations, parking lots everywhere. Hey what kind of car is that? Hyundai? I didn't know they built cars like that. Like clockwork.

I think Hyundai's management is top notch. They need to get some good marketing people inhouse. Steal the Toyota guys. I like what the Hyundai chairman said a few years ago, "Hyundai's goal to build the best cars at any price".

But I agree with GrandPrix08. They need to create a premium brand. It will be too hard for Hyundai to overcome the bottom feeding image they have now. Not deserved, but from people that have not experienced a Hyundai.

 

[Simonwpb]

The wife however is still, "Eeew, a Hyundai?". I'm guessing once I take her to see the Genesis, that will all change.

I must admit that when I told my wife I had ordered a Hyundai it looked like I wouldn't get sex ever again.

I have tried not to tell her about the Genesis until she sees it for maximum shock effect!

Why is it OK to have a Samsung phone or flat panel tv, an LG appliance, a Chinese made iPod, iPhone or Thinkpad etc but a Hyundai is somehow bad karma?

 

[Simonwpb]

I will also say that Hyundai's strategy of selling this much car for the listed MRSP is smart, I'm just hoping the dealers don't screw it up by forcing the "market adjustment". 40 grand for a loaded V6, great deal, 45 grand (47 with custom wheels) not so much and would keep me from pulling the trigger.

As an FYI I just told the dealer I would never pay list plus for a car and if they wanted me to call the other dealers within a 100 mile radius that was fine with me. In a way the value added markup is a nod to the great value in the Hyundai pricing, and their sales are up +24% this year. But bumping MSRP is an odious practice and works counter to the marketing strategy of the manufacturer.

 

[SWilliams]

I must admit that when I told my wife I had ordered a Hyundai it looked like I wouldn't get sex ever again.

LOL Dude, you're killing me. Hopefully when she realizes the supreme intellect required to seek out and acquire such luxury and value and still have more than enough left over to get her a Gucci purse, she'll be unable to contain herself and you can break in the cavernous rear seat (after letting that new car smell wear off of course).

Progress on the home front, the wife asked to see the color selections in the pic galleries.

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[SWilliams]

Do you think the Genesis sedan and coupe will significantly change the perception of Hyundai in the US

As for the coupe I am much less enthused. I think the styling is not up to the high bar they set with the sedan. In fact the side view looks like the flying H logo to me. The interior doesn't look up to par either. Of course I may change my mind when I see it in person, but the pics just don't do it for me. I think they should have just made this the next Tiburon, then come out with a coupe based version of the sedan, ala Mercedes CL.

 

[Sal Collaziano]

I think they should have just made this the next Tiburon, then come out with a coupe based version of the sedan, ala Mercedes CL.

That would have been a pretty darn cool idea..

 

[Simonwpb]

Back on topic, how many of you have had positive experience with other Korean products (LG, Samsung etc). Does Hyundai get the rolled eyes response because it is made in South Korea or because of the Hyundai name in particular..?

 

[Sal Collaziano]

Back on topic, how many of you have had positive experience with other Korean products (LG, Samsung etc). Does Hyundai get the rolled eyes response because it is made in South Korea or because of the Hyundai name in particular..?

It's the Hyundai name in particular, as far as I'm concerned.. I don't have a problem with Hyundai (obviously)...

 

[Simonwpb]

It's possible that higher sales vs. forecast for the Genesis will determine is a new lux brand is feasible in NA.
With the price of gas and increased materials costs I think Hyundai right now is more concerned with increasing sales of high-MPG vehicles. Their goal is whatever delivers the most sales volume after all.

 

[Simonwpb]

For those interested in branding and marketing I found this PowerPoint presentation that gives an inside look at the marketing strategies for Hyundai and Genesis. The 1st video gives an overview of Hyundai's growth and share in the American market. The 2nd video is very specific on costs to develop, competitors, and features of the Genesis.

[YOUTUBE]<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/lkaWhIykqo8&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.youtube.com/v/lkaWhIykqo8&hl=en&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object>[/YOUTUBE]

[YOUTUBE]<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/yjia6K0Rnqg&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.youtube.com/v/yjia6K0Rnqg&hl=en&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object>[/YOUTUBE]

 

[Jackson]

Thoughts on the Phaeton v. Genesis analogy. Like the genesis, the Phaeton was intended to lift the impression of the VW brand. But it was sold by VW dealers that weren't ready and trained to sell it. It was a beautiful car that drove great. I test drove 4 different Phaetons. they had good lease deals available. Exclusivity. Turned heads as you drove them.

Every Phaeton I drove had glaring production/manufacture defects. split seams, fans that didn't work, uneven gaps. Every dealer promissed those would be fixed before delivery. I had never test drove a premium level car with any obvious defects. Every Phaeton I drove had them. So they had a great designed product, not built to the most exacting standards, with substandard dealer experience.

VW couldn't build a premium brand around the Phaeton, they already have Audi. You could get an A8 for slightly more money, have a better car, better resale, a better dealer experience, or you could be the only one out there with the Phaeton.

I don't see the Genesis suffering the same fate. It's clearly superior to anything Hyundai sells. They have a large customer base who would like a car to aspire to that isn't Japanese made.

The problems they face are the dealer experience (concerning), and reliability (simply can't be known ... especially with the Tau). they are hitting a rapidly changing market place with a big car with a choice of big engines. Having dealers who can cater to the clientelle, explain why it is economical to buy this big car for the price of some smaller comparable cars, and establishing an expectation that the Hyundai name isn't going to kill resale is really the key.

If I go to the dealer and am pulled into a back room for a "finance manager " to tell me I need rustproofing, etching, and other crap, then they don't know who their target customer is.

Every dealer will try to maximize their profit, be it Ford, Honda, or BMW. But if you want to move a $42k sport sedan to a sophisticated buyer who would never ever otherwise walk into your dealership, you need to know your product and reevaluate your sales practices. This car becomes a smash if people like us buy it early, drive it around, and influence others to do the same with our big mouths. that is how Lexus established it's beach hold.

If the 2% price increase roles through (essentially eviscerating our $500 coupons), Hyundai will get savaged on these boards more than they did when they failed to hit their promissed $33k/$40k loaded promises while dropping content (adaptive cruise).

 

[Sal Collaziano]

Great points about the Phaeton vs Genesis, Jackson... I also agree with what you're saying about the money issues we're beginning to see. There are so many potential "major issues" with this launch. I just hope the Hyundai Corporate executives are here reading our minds...

 

[GenFan]

I agree with Jackson 100%.

The Genesis is the only reason I've walked onto a Hyundai dealership. I'm glad I have. I have a lot of respect for Hyundai now that I have been exposed to their products. I would consider a Sonata for my mom.

The dealer experience is the downside. In my experiences, the sales people are not accustomed to this customer. They default to the tricks, scams, and gimmicks that less experienced buyers fall victim to regularly.

I think the Genesis is great but I'm dreading the buying experience and trips back to the service department.

 

[RichieRichLancair]

I agree with Jackson 100%.

The Genesis is the only reason I've walked onto a Hyundai dealership. I'm glad I have. I have a lot of respect for Hyundai now that I have been exposed to their products. I would consider a Sonata for my mom.

The dealer experience is the downside. In my experiences, the sales people are not accustomed to this customer. They default to the tricks, scams, and gimmicks that less experienced buyers fall victim to regularly.

I think the Genesis is great but I'm dreading the buying experience and trips back to the service department.

BINGO!!

Couldn't have said it better.