Hyundai Hits Street With RFP

Sales are soaring, but Hyundai Motor America sees "untapped potential" and is eager to become a "real Toyota/Honda-level brand," according to the RFP for its $160 million national creative account. The review, launched last week, caught the incumbent, Bates USA, off guard and immediate stirred speculation about the future of its Irvine, Calif., office. "We didn't see it coming, especially in light of all our success," said John Upton, group account director for Hyundai's national and dealer advertising. "I don't feel there's any dissatisfaction with the product or the agency/client relationship." Bates is defending. The search is being led by Select Resources International, West Hollywood, Calif. The RFP says shops must be ready to "fully service both the factory and the dealer side on a consolidated basis." Contenders take this to mean the dealer account will follow the national business. Should the dealer work be added, the budget will reach $200 million, the RFP states. One dealer said the creative review came as a surprise, given Hyundai's "phenomenal" increase in sales over the last three years. "I can't give an example of that in the 25 years I've been in the car business," the dealer said. "It [doesn't] seem like a good time to disturb the apple cart." "Our track record speaks for itself," said Bates president and COO Bill Whitehead. "Hyundai went from being one of the worst jokes on TV five years ago to one of the best fran chises in North America." More than a dozen shops received the RFP, including Bozell and Kirshenbaum Bond & Partners, both New York; Foote, Cone & Belding, Irvine, Calif.; Ground Zero, Marina del Rey, Calif.; Grey, Los Angeles; Siltanen/Keehn, El Segundo, Calif.; Campbell Mithun, Minneapolis; Hill, Holliday, San Fran cisco; and Berlin Cam eron/Red Cell, New York, said sources. Berlin declined because its WPP Group siblings have Ford; it is unclear if Hill, Holliday and FCB can pitch since other IPG shops handle General Motors. According to Ward's Automotive, Hyundai sales jumped 42.6 percent in 2000 to 234,059 units and 24 percent in 2001 to 290,218 units.Much of Hyundai's success has been built on its 10,000-mile, 10-year warranty. Bates earned a Gold Effie in 2000 for a campaign introducing that warranty, said agency svp of strategic planning Mark Weinfeld. Current creative has the theme, "Driving is believing." The review comes roughly a week after Bates lost the national Hyundai media account as part of a consolidation between Hyundai and Kia. The combined $400 million business went to Carat, New York. OMD, New York, was Kia's media incumbent. Kia creative, handled by davidandgoliath, Los Angeles, is not in review.The abrupt shift of an account that Upton described as "the biggest in the entire Bates system" could potentially leave the Irvine office with just a handful of relatively small accounts, including Pacific Sunwear and Aramark Uniform Services."Morale is obviously pretty low," Upton said. "We're making every effort to retain the business."The RFP said the client is "very concerned about potentially dominating or overrunning a small agency." It says agencies do not have to be based in Southern California, but would have to open an office there.Sources said client decision makers include vp of marketing Dave Weber, president Finbarr O'Neill, vp of sales Bob Cosmai and a dealer rep. Responses, agency qualifications and creative samples are due Feb. 11. Eight contenders will be revealed the final week of February, followed by a cut to three or four shops. Finalists will be briefed March 7. Final pitches are scheduled for early April, with a decision expected by mid-month.

Brand Marketing

Hyundai Hits Street With RFP

Rebecca Flass

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