Toyota Vs. Hyundai - Getting it Wrong and Right.

We now know how Toyota sped to the back of the pack, led by self-accelerating gas pedals, reluctant recall practices and bad PR. Less obvious but more informative as an advertising or marketing tactic is how Hyundai drove into the lead.



Viewed as a bargain-basement alternative for people who couldn't afford anything else, Hyundai saw the handwriting on the wall back in the day, and responded. It countered the brand perception with perhaps the most comprehensive warranty on a non-luxury vehicle at the time: five-year/60,000 miles on major powertrain components, and 10 years/100,000 for corrosion.

The warranty's effect was two-fold. Sure, it offered peace of mind for potential Hyundai buyers. But the brand message, that Hyundai must be a pretty good car for them to offer such an extensive warranty, was the image engine. In short, the brand recognized its reality, and dealt directly with how consumers related to it.

The same is true today, and Hyundai, is reaping more rewards.

The Hyundai Assurance Plan. Empathy as a Marketing Strategy

When the economy tanked last year, Hyundai didn't just show a price tag: It showed empathy. If you bought their car, and lost your job within the first year, they would take the car back, no questions asked.

When I heard that offer, it stopped me in my tracks.

Of course the Hyundai Assurance plan had some fine print. Only buyers who experienced problems outside their control - like losing a job or driver's license for medical reasons, or becoming disabled - would qualify. Also, purchasers must have made two payments before returning the vehicle, and would receive the depreciation on the vehicle, limited to $7,500. But it all, sounded reasonable.



In fact, it sounded like a car manufacturer, a foreign one at that, really gave a damn about my situation. Especially when Jeff Bridges - the commercial's announcer - said, "We're all in this together."

And the numbers prove it. According to the blog Cars.com, "Toyota fell from its perch as the leader in brand loyalty among car shoppers, slipping to third place while Hyundai surged ahead to first, according to Kelley Blue Book...."

"Hyundai increased its percentage of Hyundai owners looking at new models within the brand by 10.4 percentage points, to 56.3%. Toyota fell 4.4 percentage points to 53.3% from 2009 to 2010, mostly because of its highly publicized recall issues. Honda managed to increase its loyalty by 0.7 percentage points to 55.8%."

In other words, it pays to understand how your brand is perceived, and how your customers are feeling about their world, and then promote accordingly.