Audi's top American executives were in Arizona this week, hosting golf outings with Ronnie Lott, tippling drinks with Kate Hudson and throwing swanky parties at an exclusive nightclub, all in conjunction with the carmaker's first Super Bowl advertisement in 17 years.
Hyundai is also advertising during the Super Bowl for the first time in years -- 19 to be precise -- to promote its new Genesis luxury sedan. Its on-the-ground Super Bowl effort? Inviting a handful of Hyundai dealers to attend the game with the corporate marketing chief.
"It's a question of where we want to put our resources," explained Chris Perry, vice president of marketing communications at Hyundai Motor America, based in Fountain Valley. Yet considering the money involved -- an estimated $2.7 million for each 30-second spot, and Hyundai bought two -- as well as a public miscue that made it appear that Hyundai was pulling its ads, only to recommit a few days later, Hyundai's approach to the big game strikes an odd note at a crucial moment for the company.
The stakes couldn't be higher for the South Korean automaker, which is trying to push an upscale image in advance of the June launch of the Genesis. For years, the company has prospered at the bargain end of the car-selling spectrum, but it is facing a slumping market for cars in general and a looming threat from Chinese automakers eager to break into the area.
"This is extremely important for Hyundai," said George Peterson, president of industry consultant AutoPacific. "They have to move their product up in public perception. The question is: Can they position themselves as a luxury brand?"
If they can't, he says, the cost could be much greater than $5.4 million in airtime.
Last year, Hyundai sold 467,009 cars and sport utility vehicles in the U.S., according to AutoData, a record but well short of its target of 512,000. For 2008, the company expects to sell 500,000 vehicles, a tall order in an overall U.S. market expected to shrink, by Hyundai's expectations, by 4%. Last month, it sold 21,452 vehicles, down 22.6% from a year earlier.
The Genesis, though not expected to be a big seller at first, is a significant part of Hyundai's growth strategy. Since entering the U.S. in 1986, Hyundai has focused on cars priced below $20,000. Last year Hyundai had difficulty meeting dealer demand for its low-cost Accents and Elantras, but the carmaker had a surplus of Sonatas, which top out at $25,000, and it sold many into rental fleets.
