A SYNOPSIS ON

“A STUDY ON PRICING DECISION OF PRODUCTS ASSOCIATED

WITH HYUNDAI MOTOR INDIA LIMITED”

A THESIS
TO BE SUBMITTED BY
SUKANYA CHHETRI

UNDER THE GUIDANCE OF

MS. GEETA RAJAN

IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE

AWARD OF DEGREE OF
MASTER DEGREE OF COMMERCE
(SAVITRIBAI PHULE PUNE UNIVERSITY)

DEPARTMENT OF COMMERCE
CHRIST COLLEGE, PUNE
2018-2019
INTRODUCTION
The present research seeks to study in depth the pricing decisions of Hyundai
Motor India Ltd. Pricing decisions are management decisions about what to
charge for the products and services that companies deliver. To maximise
operating income, companies produce and sell units as long as the revenue from
an additional unit exceeds the cost of producing it. In order to take the correct
decision, it is important to understand the concept and its influence on pricing
decision.
The three major influences on pricing decision are:-
 1. Customers
2. Competitors
3. Costs
Thus it is a very important decision faced by top management and marketing
manager. Hence, before setting up the price of the product, the manufacturer
must investigate the credentials of the product mix.
Pricing is one of the four elements of marketing mix, along with the product,
place and promotion. Pricing is an important strategic issue because it is related
to product positioning. Companies may use a variety of pricing strategies,
depending on their own marketing goals and objectives. Hyundai Motor India
Ltd. is a wholly owned subsidiary of the Hyundai Motor Company
headquartered in South Korea. It is the second largest automobile manufacturer
with 17% market share as of 2017 and 5.5 billion USD turn-over in India.
Hyundai Motor India Limited was formed on 6 May, 1996, by the Hyundai
Motor Company of South Korea. When Hyundai Motor Company entered the
Indian Automobile Market, there were only five major automobile
manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra.
Presently, it is the second largest automobile manufacturer in India.

OBJECTIVES OF STUDY

 To study the basic approaches to pricing by the Company

 To understand the various factors affecting the pricing decision

LIMITATIONS OF STUDY
 Time period is short so the data may not contain full details
 Respondents are not taking the questionnaire seriously
 Many of the respondents hesitate to give complete information about their
vehicle
 Restrictions placed by government to maintain the secrecy of the process

REVIEW OF LITERATURE
Ronald J. Baker (2006, Pricing on Purpose) - The pricing strategy is considered
as the success factor of the organisation. Pricing decisions are likely to have an
effect on the customer’s purchasing behaviour and on financial performance
regionally and globally.

S.P. Raj (1992, Reference Price Research) - “Price is a highly sensitive factor of
an organisation. Business owners often feel their product deserves a higher price
than it really does on the market. Understanding the costs involved in running a
business is an essential element of sound pricing and profitability”

Warren Buffet (2013, Forbes) - “The single most important decision in

evaluating a business is pricing power... If you’ve got the power to raise prices
without losing business to a competitor, you’ve got a very good business. And if
you have to have a prayer session before raising the price by 10 percent, then
you’ve got a terrible business.”

Ron Johnson (2013, New York Times) - “Pricing is actually a pretty simple
and straight forward thing. Customers will not pay literally a penny more than
the true value of the product.”

N. Robert Hammer (2012, Harvard Business Review) - “Product pricing is

aligned to the way customers want to acquire their solutions and are delivered
via different delivery models including appliances, the cloud, or as on-premise
software solutions.”

Seth Godin (2005, All Marketers Are Liars) - “Perhaps the reason price is all
your customers care about is because you haven’t given them anything else to
care about.”

John Harrison (2014, Pricing News Daily) - “You know you’re priced right
when your customers complain—but buy anyway.”

David Wayne Wilson (2014, Pricing News Daily) - “What I 'charge' today has
nothing to do with yesterday or tomorrow. It has to do with 'now'!”

Carl Rogers (2013, Pricing News Daily) - “With the price of life these days,
you've got to get everything for free you can.”
Patrick Campbell (2012, Price Intelligently) - "Pricing is the exchange rate you
put on all the tangible and intangible aspects of your business. Value for cash."

Warren Buffet (2012, Bloomberg) - "Price is what you pay. Value is what you
get.”

John Harrison (2014, Pricing News Daily) - “You know you’re priced right
when your customers complain—but buy anyway.”

RESEARCH METHODOLOGY

Method of Data collection

 Newspaper articles
 Magazines and Books
 Web
 Journals
Sources of data collection

 Personal Interview
 Survey
 Questionnaire

CHAPTER SCHEME

CHAPTER 1- INTRODUCTION
PRICING DECISION
OBJECTIVES OF STUDY
SCOPE OF STUDY
IMPORTANCE OF STUDY
LIMITATIONS OF STUDY

CHAPTER 2- RESEARCH METHODOLOGY

METHOD OF DATA COLLECTION
SOURCES OF DATA COLLECTION
 TECHNIQUES OF DATA ANALYSIS

CHAPTER 3- REVIEW OF LITERATURE

CHAPTER 4- ABOUT THE COMPANY

INDUSTRY PROFILE IN INDIAN HISTORY

CHAPTER 5- FINDINGS AND SUGGESTIONS

CHAPTER 6- CONCLUSIONS

CHAPTER 7- BIBLIOGRAPHY

 https://www.thebalancesmb.com/what-to-consider-when-making-pricing-
decisions-4083152
 https://accountlearning.blogspot.com/2012/04/concept-of-pricing-decision-
and.html
 https://en.wikipedia.org/wiki/Pricing