Hyundai plans on spending $80 Million dollars to launch and market Genesis. They are playing for all the marbles here.

http://adage.com/article?article_id=127417

"Hyundai plans on spending $80 Million dollars to launch and market Genesis"

Do the math. 30,000 units allocated for the US amounts to $2,667 per unit, before rebates and eventual dealer discounts. Too many zeros in the launch budget.

"Do the math" as you say contains "too many zeros in the launch budget". And you would be right except Hyundai is not spending its marketing dollars just for this launch. If that was the only strategy it would be an ill conceived one. The plan is to catapult the Hyundai brand and use Genesis to shift perceptions about the brand. The Genesis as the flagship, along with the supporting cast of Sonata, Azera and company, will push sales further.

2500 delivered units per month is a relatively small number, compared to the overall premium market but the traffic spill over will help drive cross over, as well as a fair amount of conquest sales, to their other models, particularly, from domestics.

I recall the '80s, when Toyota spent gobs of TV Ad dollars promoting their brand, and building brand awareness. It's a formula that worked for them and I believe it will work for Hyundai now that they've brought an "A" game player to mix.

The success of the Genesis will lead Hyundai to the next obvious step, which is to build separate premium brand channel for Genesis.

"Hyundai plans on spending $80 Million dollars to launch and market Genesis".

Do the math part 2: 2,500 monthly units distributed to 800 US dealers amounts to 3 units per dealer per month. A risky move if as you say the objective is consumer pull through into the showroom to become acquainted with the Hyundai family of vehicles.

The Hyundai product line in many cases is secondary in a dual dealer network. The Korean suits are rolling the dice if they have the confidence their existing dealer network selling other brands will step up and get the job done.

"May I help you", "Yeah, I want to see this new Genesis I have heard so much about" "Sorry, our allocation is sold out but..... let me show you the new Lincoln"

Part of the 80 large would be better served creating and developing a "Genesis" dealer network on the front side as was the case with Toyota / Lexus.

This post has been edited by Dean Sr.: Jun 4 2008, 02:36 AM