Hatchback Passenger Vehicle Case Study
Pricing strategy for Hyundai Though Hyundai is present in India only for a decade , it currently owns a market share of 14 % of Indian Automotive sector . They focused on the look of the car , feature style & design. Hyundai Santro are the focused car for lower segment. While i10 and i20 focussed on above 5 lacs segment.. Their prices are higher than it’s competitors within the same segment but Higher prices are justified by giving a better look , investing highly in advertising & promotion , providing good features .
There are many factor that decide their pricing : i. Market & Occasions – ii. Costs incurred iii. Dealer Margin Other considerable factors which affect the pricing strategies of Hyundai are: Packaging and Innovation: Hyundai invests 5% of their revenues in R&D to secure world-leading quality,marketability an technology . They have set up their new R & D center in Hyderabad. Their fourth overseas R & D center. This also stress that how important Indian market is to them . This 200,000 square-foot facility set up with an investment of Rs. 84 crores, , is aimed at further accelerating local content development and to enable Hyundai to respond even more quickly to changing customer needs across the world. They package product has a combination of elegance and functionality to the customers Advertising, Sales Promotion and Public Relations: Hyundia Motors car emphasizes on the features and look of their car. They have tried to build a band equity by roping Mr . Shah Rukh Khan as their brand ambassador almost since their start of operations in India.
His star power was used for catapulting sales of Hyundai Santro . Then with the launch of Hyunda Santro Xing. As for now , his pairing with model Ms Urvashi Sharma is used for promoting i10. According to article (http://business. outlookindia. com/printarticle. aspx? 101517 )- Mr Shah Rukh Khan takes about Rs 6 crore for 2 minute commercial . This shows that Hyundai allocate high marketing budget for their hatchback car. Their cars not only confer economic advantage but are luxurious and spacious .
They provide good comfort and features. The promotion is not only done through television but also through Newspapers, Magazines, Hoardings, Internet etc. The dealer also conducts point-of-purchase displays to advertise the products. Channels of Distribution: Hyundai have also employed a dealership model of distribution of it’s products . Though they only entered Indian Market only 15 years ago they have been able to form a satisfactory sales and service network. The dealers purchase products from the Co. t a negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within these prices. Hyundai Motors also operates its own dealerships which are known as Hyundai Motor Plazas in large metros. They also help in providing sales and service . To supports its growth and expansion plans , HMIl currently has a 329 strong dealer network and 698 strong service point across India, which will see further expansion in 2011 ( http://www. hyundai. com/in/en/CompanyInfomation/AboutHMIL/Profile/HMIL/HMIL. aspx)
