Hero MotoCorp is an Indian motorcycle and scooter manufacturer founded in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. In 2010, Honda exited the venture and Hero group acquired full ownership. The company was renamed Hero MotoCorp in 2011. The document discusses Hero MotoCorp's pricing policy and objectives. It explains the company uses penetration pricing for mass market products and premium pricing for higher-end models to signal quality. The pricing strategy aims to balance market share goals with profit targets. Suggestions are made to improve pricing capabilities through business intelligence and one-to-one customer engagement.

1. HERO MOTO CORP.
PRICING POLICY OF
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2. Brief Information About The
Company
 Hero Motocorp Ltd. formerly Hero Honda is an
Indian motorcycle and scooter manufacturer based
in New Delhi.
 It was founded on Jan 1984 in Dharuhera, Haryana.
 Now has plants in
Gurgaon and Haridwar
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3. Mr. Brijmohanlal munjal,
Chairman,Hero Group Of
Industries
Mr. Pawan Munjal,
MD & CEO of Hero MotoCorp
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4.  It was joint venture between- Hero Cycles India and
Honda of Japan.
 In 2010, Honda decided to move out of the venture,
Hero group bought the shares held by Honda.
 In August 2011, the company was renamed as Hero
MotoCorp Ltd.
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5. Vision
The story of Hero Honda began with a simple vision
 The vision of a mobile and an empowered India,
powered by its bikes.
 Hero MotoCorp Ltd., company's new identity,
reflects its commitment
1. Towards providing world class mobility
solutions
2. Focus on expanding company's footprint in the
global arena.
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6. MissionHero MotoCorp's mission is to :-
 Become a global enterprise fulfilling its customers' needs
 Aspirations for mobility
 Setting benchmarks in technology
 It will continue its focus on value creation and enduring
relationships with its partners.
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7. Hero MotoCorp's key strategies are :-
 To build a robust product portfolio across
categories,
 Explore growth opportunities globally,
 Continuously improve its operational efficiency,
 Aggressively expand its reach to customers,
 Continue to invest in brand building activities and
 Ensure customer and shareholder delight.
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8. What is Pricing ?
 Pricing is the most effective profit lever.
 Price is the only revenue generating element amongst the
four Ps, the rest being cost centers.
 A good pricing strategy would be the one which could
balance between the price floor and the price ceiling.
 It is a price that shifts most of the consumer surplus to
the producer.
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9. Pricing Objectives
Meet
Business
Objectives
Other Pricing Objectives
 Status Quo
 Image
 Social & Ethical Considerations
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10. Pricing can be approached at three levels:-
 Pricing at the industry level
 Pricing at the market level
 Pricing at the transaction level
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11. Segmentation And Targeting
Penetration pricing is the pricing technique of setting a
relatively low initial entry price.
Advantages of this policy:-
1. It can result in fast diffusion and adoption.
2. This can achieve high market penetration rates
quickly.
3. This can take the competition by surprise,
not giving them time to react.
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12. Market-oriented pricing
Glamour- Price and technology oriented people
Setting a price based upon analysis and research compiled
from the target market. This means that marketers will set
prices depending on the results from the research. For
instance if the competitors are pricing their products at a
lower price, then it's up to them to either price their goods
at an above price or below, depending on what the
company wants to achieve.
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13. Premium pricing
Karizma- Status oriented people
Premium pricing is the practice of keeping the price of
a product or service artificially high in order to
encourage favorable perceptions among buyers, based
solely on the price. The practice is intended to exploit
the (not necessarily justifiable) tendency for buyers to
assume that expensive items enjoy an exceptional
reputation or represent exceptional quality and
distinction.
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14. The price execution(which includes the development of
pricing strategy and the implementation of the strategy) done
by Hero Motocorp has been well so far it has helped the
company to be consistent in sales efforts and proposals.
 Suggestions:-
1. Establish a business-intelligence Center of Excellence to
facilitate the use and improvement of pricing data in the
organization.
2. Have the organization develop capabilities that will
support one-to-one marketing, pricing, and sales. 14

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16. By :-
Sagar Raj
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