Hyundai: Marketing Strategy: Pricing Strategy

Pricing Objectives involve specifying the role of price in an organization’s marketing and strategic plans. These

A company’s pricing strategy is important for the company to meet competition, maintain market share and of course to maximize the profit. Proton has positioned itself as a low-priced car manufacturer by offering affordable price to attract customers from middle income level. This price positioning of Proton has led to the major sales of its first automobile product, Proton Saga. The price of different car models also determines the classification of the various Proton’s car models. The affordable price of Proton’s products helps the company to draw the customers’ attention with its cost leadership strategies.

Third, the price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. The most commonly used are:

SUMMARY OF CH.10 Pricing strategies: Price: is an amount of money that the consumer is paying for a product or a service. Costumer value-based pricing: to determine the price of product or service we have to consider the customer expectations of the value not the seller’s cost. Good-value pricing means the balance between good quality and service, decent price for both the customer and the company in order for it to gain profit.

They are Hyundai Motor’s “Santro”, Daewoo Motors “Matiz” and Fiat India “Uno”. There was an effect on price sensitivity as people are ready to pay more for fuel efficient cars.

The price that we pay is the value that we associate to any product, whether it is a good or service. It is the compensation given to a person or authority to purchase an object or service. The greater the value associated to the product, the greater the price.

Tata Motors released the Nano automobile in 2008. In 2007, India with a population of 1.2 billion, only bought a little over 1 million automobiles. By contrast, they bought over 7 million

Volkswagen as well. Audi and Volkswagen were launched in India in 2004 and 2007, respectively. In 2010, a

As mentioned above, because of The Optima’s high end service and product quality, while implementing premium pricing, company aims to reduce the prices slightly without effecting negatively its “high-end image” and company exerts different promotional offers to support the higher price policy and make the

Market: Marketing strategies always when deciding the pricing for a product, where company have to compare with other companies or brands in market and then decide the feasible price for its customers to capture the market where department chain store also have to see its competitors value as well as situation of the market and expected customers then have to do decide price for high-ranged products.

Proton is now a market leader in the domestic market which make up to 70% of the market share of car sales in Malaysia. Proton recently has also developed their own engine, own

Finally the last strategy used by Tesla is defining their prices in under a Skimming Pricing Strategy. This tactic is often used for the introduction of a new product to a market, were in a first phase the focus is trying to establishing a high initial price for a product, looking for the upper end of the demand curve. Later in the phases that follow, the price of the product can be dropped until finding a balance of the actual demand the product will have and its price. We can see this in the Tesla case when in a first moment they introduce the Tesla Roadster as a high value

The Hyundai Motor Company (HMC) is the largest South Korean automobile manufacturer, which is the fifth largest automaker in the world.

In this era of new age where life is fast paced and always on the go, the world requires a car that is compact and reliable to match up to their daily requirements of work and comfort. Hyundai addresses this very need through its pocket friendly and efficient car – the all-new 'Elite' i20. The older i20 did surprisingly well in the premium hatchback segment, and now Hyundai has set to achieve even greater success with a car that promises to bring a new level of 'luxury' to this section of the market.

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).