"You Bought a What?!" Hyundai’s Battle with its Brand Image

"The only problem I have had so far is that the snobby Yuppies don't approve of Hyundai's. It's not on their list of approved cars. If that doesn't bother you, and I hope it doesn't, they are very good cars."
-from someone on Autoboardz

Korea Is In the Limelight:
Call it Korean Karma: Interest in Korean pop culture is at a all-time high. Chinese in Hong Kong and the US are watching Korean soap operas; they are eating them up. “Lost” has two Korean actors. The first Asian to win on "Survivor" was Korean. And Hyundai is getting noticed more and more in the car industry. Something is up.
Most recently AutoPacific's Image and Consideration Tracking Study selected Hyundai as the most improved car manufacturer of 2007. The 2007 Elantra was also given an award for "most ideal compact car" by AutoPacific.
Now Hyundai was eyeing the luxury market. Is it a coincidence that the current Hyundai “H” badge looks a lot like the Lexus “L” badge? Maybe the luxury market was among Hyundai’s aspirations all along.

Even though those folk that regularaly read car magazines know Hyundai’s quality and reliability has risen sharply in the last 6 years, the cachet of the brand is still lower than its competition. Even though it ranked No. 3 in JD Power’s initial quality study in 2006, in 2007, it still only has about 2.5% of the American car market. It seems Hyundai still has a lot of work to do to win the respect among the greater car buying public.

Hyundai Still Fighting the Ghost of the Excel

I'll go out on a limb and say there are still large numbers of people who either

• Have been trained to not believe Hyundai can make a desirable car (or even a decent car)
  
• Are afraid to look uncool or poor by driving a Hyundai
• Embarrassed to be perceived as cheap by buying a Hyundai

I really kind of wonder what my friends thought when they heard I was interested in buying a Hyundai Elantra. When your guy friends drive TL’s, CX-7’s, LS400’s, and Tundras, what do you think their first thought is when you utter “Hyun-dai”?

On Yahoo! Answers where you get normal people (like me) playing experts on anything from religion to digital cameras, responses like these still pop up:

“Hyundai is lame all together. I'd go with the Honda or Toyota”

“Hyundai ain't got S......on Toyota.
Hyundais vehicles are like Disposable Cameras, you use them for a while then they are garbage. If any manufacture will come close to Toyota it might be Honda, but Hyundai? Not even close.”

“most people already know Hyundai's and Kia's are junk. those that don't get suckered by the marketing ploys.”

Some people are even embarrassed to drive a Hyundai Sonata as a rental car. Check out this blog article, “Hyundais Don’t Suck, but their brand still stands for suckiness”

Hyundais early embarrassments still haunt them. Even though the Japanese made poor cars when they started, the media was not as strong back then. The media of the 80's poked fun about Hyundai relentlessly. Hyundai might be facing a tougher task than Honda and Toyota.

Hyundai Still Fighting Its 'Value' Image:

To get a beach head in the American market Hyundai made its warranty the star, not the cars. It made getting more features at a lower price its image. It made American car buyers think that Hyundai couldn’t compete with the other brands unless it undercut the competition. Heck I bought the Elantra for exactly for the bang for the buck factor(though its rising reliability was the tipping point).
I see Hyundai gradually trying to wean us off that image. 2008 Elantras with Traction Control standard now cost noticeably more than the 2007's. This is a double-edge sword. People who used to see Hyundais as a way to save money may give up on it, if they see that price difference diminished between it and a "cooler" car. Hyundai needs to rely on "smart value" consumers who recognize though Hyundai may not be cheaper than a Sentra(eventually), it has more features and perhaps more reliability, and thus it is the better value. If not enough consumers pick up on this revamped Hyundai, Hyundai will suffer. But so far I have to give Hyundai an "A" for effort.
Hyundai public perception is gradually moving from just being seen for the excellent value of its cars to being respected for its cars in general.

Time and Brand Strength

Time is key to building a strong brand image. Though Hyundai’s been making cars for 20 years, they only started getting respect here a few years ago. They have a long way to go before a Hyundai Tiburon is talked about with the same familiarity and high regard as the classic Ford Mustang or even a Mitsubishi Eclipse. Hyundai Motors has no marquee model to stand on. All the better established brands have had models that made them stand out as cool or innovative at one time or the other. Hyundai does not have any of this. All of its successful models this year still live in the long shadows of more popular cars. Take their best seller, the Elantra: Civics are still more reliable and cool. Mazda3 are more sexy and fun to drive. Corollas are still phenomenally popular despite not having a redesign in several years. But it was time (and continued exceptional quality) that has made Civics and Corolla the undisputed champs of their class. If Hyundai keeps up their quality, time will be as asset to them as well.

Rev Up the Fun Factor
Not saying they should abandon the mini-van, but if I were part of Hyundai product development, I would jazz up the sexiness and performance on a couple more models….really attempt wow the driving enthusiast. Right now their image is “value”. And “value” is not sexy to most people.
They have established they can be more reliable than Nissan and Mazda. They know how to craft a refined interior and tight exteriors. But they are still considered bland or “uninspired” by many car enthusiasts. The Sonata and Azera are handsome cars, but far from drool-worthy. With the Mazda3, people have seen "practicality and performance" and "economy and fun-to-drive" can go hand in hand. Hyundai needs a model that gives up the price game and just competes on driveability, horsepower and looks. The new Genesis is a step in the right direction. But I think it might be more important to turn their attention on the more practical, and thus more pivotal Elantra Touring Hatchback. It has decent looks and a sportier suspension than the Elantra sedan, but I think it will have the same tame 138-hp engine. If they offered a sport trim with some kick, something that lures people out of their Mazda3 S‘s, they might move things along faster.



Its Cars Have Caught Up To Its Logo
It is an exciting time for Hyundai. I really took notice of the brand when they redesigned their logo several years ago. I thought and still think the Hyundai head badge is a truly handsome logo. It is sporty, simple, yet expressive. I like it better than Honda’s and Toyota’s surely. But too bad none of the cars at the time looked nice enough to deserve that badge. After the 24/7 redesign, all the vehicles look good enough to bear that badge. There will be a future when Hyundai will not be haunted by the Excel or just shopped for its price. I think it will take a few more years, but Hyundai and car buyers will get there eventually. When Hyundai Motors' 25th birthday rolls around, I think they will be facing a more welcoming consumer base.