As Genesis continues to grow in the U.S., the young premium nameplate is gaining autonomy from the mass-market brand that created it, the brand’s North American COO said.”When we launched, we needed a lot of support from Hyundai, but now we are growing and every single function that is consumer facing is becoming completely independent,” Claudia Marquez told Automotive News. That includes adding dedicated teams for sales, field operations, marketing and customer experience.Hyundai Motor North America CEO Jose Muñoz, who is CEO to Genesis in the region, has been vocal about the critical need to build Genesis apart from mainstream Hyundai to compete on the same level as established rivals. That includes the physical separation of dealerships.Some dealers initially expressed skepticism around the plausibility of a luxury division, many snubbing the initial Keystone facilities program that entailed pouring millions of dollars into construction of exclusive Genesis storefronts. Dealers later asked Muñoz for an extension on the program after those who opted in reported improvement in customer service ratings as well as increased sales and profits.With a stronger brand awareness in the U.S., a budding lineup, record sales and an experienced executive leadership team, Genesis is building momentum./cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js
“We are different from Hyundai. We are not in the mass market, and we understand how competitive it is and that we are the new kid on the block,” Marquez said.Genesis made its U.S. debut in 2016 with just two sedans. Eight years later the lineup is more robust, offering:
- A third sedan, the sporty G70
- An electric version of the G80
- A pair of sleek crossovers, the compact GV70 and midsize GV80
- Two electric crossovers, the electric version of the GV70 and the all-electric GV60 compact crossover.
The new products, which Marquez describes as a “strong model offensive,” have been steadily boosting volume. In March, Genesis sales were up 4 percent compared with the year-ago month, marking the 17th month of consecutive sales growth. Genesis ranked No. 10 in the U.S. in the first quarter, with 14,777 sales, a spot ahead of Infiniti and one behind Land Rover.Marquez said Genesis also is committed to electrification. The brand plans to convert its full lineup to all-electric by 2030. It teased some of what that might look like ahead of the New York auto show in March with the unveiling of four high-performance concept models meant to usher in a new sub-brand called Magma.
The GV60 Magma concept, a variant of the GV60 compact crossover, is headed for production and will be on sale “in the near future.”A fifth concept, the Neolun, is a massive, high-style electric crossover that will likely be the predecessor to the GV90 three-row crossover.
When Marquez joined the brand in October 2021, Genesis Motor America had 59 dedicated full-time employees. Today it has nearly tripled that number, with 165 team members in the U.S.This year, Genesis expects to expand to 195.The dealer network also is in a growth spurt. Today there are 11 dedicated storefronts that are selling Genesis vehicles separately from Hyundai. Genesis says the standalone dealership count could reach 40 by year end.
Genesis recently created a CMO position and brought on industry veteran Drew Slaven, who spent two decades at Mercedes-Benz USA. Slaven most recently was CMO. He stepped in as interim CEO from 2020 to 2021.”We needed help to go to the next step, and someone with very strong experience,” Marquez said, noting that he will continue positioning the brand not only in the U.S., but globally.In the new role, Slaven will be responsible for developing and executing consumer marketing as well as developing a strategic plan for national and regional advertising. He also will partner with dealers to support local marketing efforts and oversee multicultural, experiential and digital marketing. Marquez said he will be building out his team, including adding more directors to manage Genesis customer experience and aftersales training.
When she came on board, Marquez said Genesis’ marketing strategy was centered on social and digital advertising. She pushed for a broader strategy that included spending on national advertising.”Being a young brand and not there in terms of volume, it’s a big percentage of revenue in comparison to many others because, in the end, the cost for media is the cost for media, whether it’s $10 million or $1 million,” she said.Genesis, which uses consumer marketing data firm GfK to benchmark brand awareness among other insights, closed 2023 with the “highest awareness positioning ever,” Marquez said.”We have a very clear objective every year to 2030, and by then we will not only have to be at the segment average, but at the luxury segment average or higher,” she said.”So we cannot stop. We are still in investing mode.”
Source: autonews.com