Sales Laundry

Archive for March 12th, 2009

Hyundai has a problem shared by every car manufacturer; we are not buying new cars. 

 Sales are down 30%+ across the industry and GM, once the pride of American manufacturing is on the verge of being delisted from the stock exchange as shares trade under $1.00.

 The difference is Hyundai gets it.  Instead of gutting their value and defensively dropping their shorts on price, rebates and financing, they are on the offensive, effectively saying “Mr. customer, I dare you to lose your job.”

 they are on the offensive, effectively saying 

“Mr. customer, I dare you to lose your job.”

Hyundai already has a sales strategy and marketing message that I would think would play well in this economic environment.

 That message being “We build stylish high quality, inexpensive cars, and we back it up with a strong warranty” which was designed to solve the problem of “I don’t have a lot of money, but I need a car that is better than what I am driving now.”

 That message has a lot of appeal, but apparently not enough to keep sales from falling off of a cliff. 

 Hyundai took a deeper look at why business was slumping and thought way outside of the box for ways to solve a problem weighing much heavier on the minds of their prospect than the problem their current value statement was solving.

 That deeper problem being “What happens if I lose my job and cannot pay my bills?”

 The answer until now has been “The car gets repossessed.  I lose my transportation.  It would be harder to find a new job.  My credit gets ruined, and I won’t be in a position to buy a car on credit when I do get back on my feet.”

 Final decision:  “A new car would be nice, but there is just too much downside right now to justify it.  I will keep my old car; at least it is paid for.”

 So what did Hyundai do?

 Hyundai Assurance Plus:  If you lose your income, we will make your payments for 3 months.  If that is not enough time to work things out, you can still bring the car back within a year.  By the way, you still get the 10yr warranty.

 I have no idea how this strategy is going to play out for them, though I assume it will be fantastic as long as legal did not pack the contract with too many outs.  I can, however, tell you how it makes me feel as a consumer.

 I feel like Hyundai is a company that gets it.  That they understand and they are offering up a legitimate “bail out” for the little guy if it becomes necessary.  More importantly, I feel like Hyundai cares.  Hyundai is willing to step in and help out if life’s challenges get a little too big for a while.

 Hyundai is going to earn some respect and get a look by a segment of the market that would not have looked at a Hyundai before and Hyundai is going to win a deep loyalty from the customers they end up helping out.

 More sales today, more happy customers and more market share tomorrow.

It is an aggressive move in a market that finds most of their competitors retreating to a defensive position of low price.

 Ask yourself, does your present value statement carry the same weight it once did?  Is there a bigger problem in your customers mind than the one you are presently solving?

Identify that problem, find the solution, and then figure out how your company can help deliver that solution alone or with strategic partnerships.

 If I were an independent car dealer right now I would be calling my financial partners to see if we could put a “Hyundai Solution” in place for my dealerships.

 What is the creative solution for your industry?  Get it right and you will be the one rewarded with customer loyalty and market share. 

I am looking forward to reading your thoughts.