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Kia
Kia Motors Corporation is South Korea's second-largest automobile manufacturer. All Kia models come with a seven-year warranty.
During the three-year warranty period offered by most manufacturers there are an average of 1.9 claims per car against guarantees. During seven years, Kia customers make an average 2.7 claims. That's 0.8 of a claim per car in the final four years of the warranty. This means the Kia cars get checked and repaired more and get more reliable in the long run. This seems to have a positive effect on the used value of Kia cars on the second hand market. The customer therefore wins twice: he gets 7 years of peace of mind, and a higher resale price. Kia from its side, almost tripled its market share.
- Website
- Country: South Korea
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Sectors:
- Car industry
- Maturity level: Established
Explore the Archetypes linked to this case
Combined strategies
Circular Value Creation Strategies
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Reuse
Reuse
The common use of a product (or product parts) spread over sequential timeframes.
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Repair
Repair
The correction of a specified fault to prolong the product’s lifetime.
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Optimal product use
Optimal product use
Decreasing the amount of products needed for delivering a given amount of value. This can be realized in several ways, e.g. by shared use, by extension of the product’s lifetime,...
Value Proposition Strategies
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Branding (eco/premium)
Branding (eco/premium)
Enabling a price premium by highlighting/guaranteeing quality and or environmental claims (e.g. certificates, environmental stewardship,...).
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Cost reduction
Cost reduction
Providing the customer with a cost reduction compared with BAU (e.g. shared use, avoiding waste handling fees, reducing resource consumption,…).