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INTRODUCTION
Customer is the king, but that doesn’t mean you are not. The new rule says body is
the latest tools from the information technology repertoire which enables, promotes and
Marketing is used to identify the customer, satisfy the customer, and keep the customer.
With the customer as the focus of its activities, it can be concluded that marketing
evolved to meet the statics in developing new markets caused by mature markets and
overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires
businesses to shift their focus from production to the perceived needs and wants of their
The four main fields of the Marketing mix. The term "marketing mix" was first
used in 1953 when Neil Borden, in his American Marketing Association presidential
address, took the recipe idea one step further and coined the term "marketing-mix". A
seen wide use. The four Ps concepts are explained in most marketing textbooks and
classes.
Elements of the marketing mix are often referred to as 'the four Ps':
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on a large scale with a specific volume of units. Intangible products are service based like
the tourism industry & the hotel industry or codes-based products like cell phone load and
credits. Typical examples of a mass produced tangible object are the motor car and the
disposable razor. A less obvious but ubiquitous mass produced service is a computer
• Price - The price is the amount a customer pays for the product. A number of factors
including market share, competition, material costs, product identity and the customer are
perceived value of the product determines it. The business may increase or decrease the
• Place - Place represents the location where a product can be purchased. It is often referred
to as the distribution channel. It can include any physical store as well as virtual stores on
the Internet.
• Promotion - Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, word of
mouth and point of sale. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion. Advertising covers
any communication that is paid for, from cinema commercials, radio and Internet adverts
through
Print media and billboards. Public relations are the communications which are not
directly paid for and includes press releases, sponsorship deals, exhibitions, conferences,
seminars or trade fairs and events. Word of mouth any apparently informal communication
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engaged to create word of mouth momentum. Sales staff often plays an important role in
marketing. By offering the product with the right combination of the four Ps marketers can
improve their results and marketing effectiveness. Making small changes in the marketing
mix is typically considered to be a tactical change. ParmBains says making large changes
Promotional Strategies: Promotion is the method you use to spread the word about your
product or service to customers, stakeholders and the broader public. Once you’ve
identified your target market, you’ll have a good idea of the best way to reach them, but
most businesses use a mix of advertising, personal selling, referrals, sales promotion and
Advertising
Selling
Sales Promotion
Public Relations
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NEED FOR THE STUDY
I. Today’s companies are facing the toughest competition ever, so the companies can
outperform the competition, they move from product and sales philosophy, they
have come up with more effective and sophisticated value as means to gain
competitive advantage.
II. The main reason behind doing this research is to obtain information regarding the
customers the customers of the product, and to motivate the customers who want to
III. This survey will fortunately help the company in measuring the brand awareness,
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OBJECTIVES OF THE STUDY
Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors) in Visakhapatnam and customers
attitude towards all the products of Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors).
II. To understand the customer purchase behavior based on the promotional activities
III. To know the role of promotional activities of Adishwar Auto Diagnostics Pvt. Ltd
IV. To know how the company is achieving the competitive advantage through
promotional activities.
Diagnostics Pvt. Ltd (Mahavir Motors) for increasing sales of Mercedes Benz
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METHODOLOGY
RESEARCH METHODOLOGY
SAMPLING TECHNIQUE
Fact expressed in quantitative from can be termed as “data”. Data may be classified as
PRIMARY DATA:
The primary data was collected with the help of a structural questionnaire targeting the
customers. The questionnaire consists of 15 and these questions involve the impact of
promotional activities on Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors) sales as
well as customer purchase behavior and the benefits more which they are desired.
SECONDARY DATA:
The secondary data implies the data that is already available, collected, analyzed, and other
information in form reports, journals, newspapers and magazines. The secondary data
required for the study is obtained from the main office and websites.
SOURCES OF DATA:
After the objective has been stated clearly, the next task is to collect relevant data
regarding the research study. The data regarding the motor field in Indian scenario and
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Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors) are collected from the internet. And
other relevant data are collected from internet. Although there are some data from
newspaper and magazines but the major portion is given by the company i.e. the Marketing
Manager of the department Most of the data and figures are collected from the record of
the company. In fact the above collected data is not enough so there is need of primary
source of data. So the primary data involved data collected from customers.
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LIMITATIONS OF THE STUDY
I. The study will be undergone within the limited period of only 60 days
II. The major limitation in my study is, as most of the customers are illiterates they are
III. The area selected is limited to Visakhapatnam only. The findings are regional and
IV. The data which is used in the study is given by the Guide and which is assumed to
be true.
V. There is a possibility of biased answers from the respondents hence the information
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SCHME OF PRESENTATION
CHAPTER I
● Introduction
● Methodology
CHAPTER II
● Industry Profile
● Company Profile
CHAPTER III
CHAPTER IV
CHAPTER V
● Summary
● Findings
● Suggestions
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CHAPTER – II
INDUSTRY AND COMPANY PROFILE
In 1769, a French Engineer Captain Nicholas built the first load vehicle propelled
by its own power. It was a 4 wheeler vehicles fitted with steam engine. It attained a speed
of about 2 Y 2 MPH for 15 minutes. In 1880, German and French efforts developed an
internal combustion engine vehicle. The present day automobile is the development of this
Germany.
experimental automobile. In this year Panchard and Levamor in France also developed a
car with minor modifications and incorporated the chief feature of the automobile, as we
know it today. In 1890-95, the European designers were also active in the development of
the automobiles. In 1895, European designers purchased engine from France and had if
placed in front of chasis; housed on to a sliding gear; transmission and incorporated brake
pedal, clutch and accelerator. In 1900, the design of the automobile was so improved that it
awakened the public to the fact that this new form of the transportation was really
practical. In 1906, many of the great names around which the world’s largest
manufacturing industry was to be built in America had already begun to manufacture the
automobiles vehicle Packard, Auto car olds Mobile, While, Bulk Over Land, Ford,
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Cadillac etc., All these names were on motor vehicles before 1905. Pirer-Arrow,
Locomotives, Maxwell, Franking and peerless were also important during that time in the
In 1920, there was a gradual change and refinement in automobile design. It was
clear by the fact that the spark ignition gasoline engine was the power plant of the modern
motor vehicle water–cooled engines was almost universal. The sliding gear transmission
had established itself as predominant. The puppet valve was used in almost every engine
design. Engines were also located in the chassis. In this period the major improvements
were made in very carry feature. The designers tried to produce a vehicle which functions
at all times under all conditions; which is comfortable to ride and easy to operate.
Increased life of tires, Independent front wheel suspension, and four wheels hydraulic
breaks, high compression ratio, higher power, use of new materials and hundreds of other
changes have been made. In recent years, the passenger’s car chassis construction has been
forced to shape itself to re designed bodies, while in the field of truck design, body- chassis
problems began to get simultaneous consideration greater than ever before. Fluid play
wheels, freewheeling over drives, automatic transmission and many other newer features
are in the today’s cars. The diesel engine was invented only a few years after the spark
ignition engine car had engine in the years has provided the owner with cars that are safe,
then existed in the country did not permit any reputable overseas automobile manufacturer
to establish company here. While elsewhere in the world survival for automakers depended
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on introduction of new vehicles with better technology, our country was a mute spectator
as all these technological advances were protected by Govt. and monopolist regime. The
Indian automobile industry was at the threshold of the transition that affected all the
segments from two wheelers to tractors. The entrances of MNC’s by the infusion of
modern technology have necessitated this tradition. In the coming years all segments in the
industry will face challenges on accounts of either over supply prize war or a shift in
consumer’s preferences This is likely to be felt more intensively in passenger car segments
than in other segments in the industry with 25% growth of $ 8 billion. Indian automobile is
one of the fastest growing industries in the world. The major auto manufacturers are well
aware of the galloping growth rate and most of them have rushed to set up company in
India to grab a slice of the potentially gigantic market. The automobile industry, which
has long stifled in the era of the controls, is emerging as a driving force for the engineering
sector with almost all the global leaders in the industry setting up a company in India.
There is an old saying “take a pan with some water, put a frog in it and start heating it, frog
will never realize that with the rise in temperature it is nearing its death but if you put the
frog in a pan of hot water, it will at once jump out”. Indian industries are in a similar
situation, before liberalization, they never realized that they are nearing death. It was only
after the liberalization they realized. In the coming years all segments in the industry will
face challenges on account of either over supply, price wars are a shift in consumer’s
preferences. This is likely to be felt more intensively in the passenger car segments of the
industry. The trend in India is being changed by the so-called status, need and necessity the
people who previously went on bikes now go on cars not just one particularly car but
choice of cars among them. So, the need is to upgrade in the sales of cars in India, which
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was pretty low. The automobile is not only an issue of consumption and consumers. The
LIBERALISATION POLICY
initiated measures, which may be said to have brought about a qualitative change in the
pattern of government business relationship, and statically alerted the character of business
of environment. The policy changes involve far reaching structural reforms aimed at
leading Indian trade and industry away from a regulatory and protective regime to market
competition. It was in july1991 that the liberalization of economic policy started in real
terms. India opened its gates to foreign investors who were seriously looking for untapped
markets to prop up the sagging. Most of the automobiles MNC’s entered into joint ventures
with existing Indian automobiles manufacturers and simply used up the existing facilities
to assemble their cars. So, the entry of MNC’s into the Indian protected market created a
wide range of choice for the buyers with latest models and enhanced features for the
ultimate satisfaction of the customers. Very soon one can expect a multitude of ears
specially designed and priced for Indians to hit the market. The new competitors are
offering product technologies that are far more advanced than the MARUTI of 800s
vintage. Many say that competition brings out the best in the people by posing challenges
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ENTRY OF CARS IN INDIA
India until 1950 has an automotive industry of its own. Previously cars were imported from
countries like U.K, Belgium, France, Italy, Germany, and Canada, & U.S, The cars, which
British India used on its road, were Buick, Plymouth, Pontoon Ford, Dodge, Rolls Royce’s
for the elite class. Morris Minor, Limo etc, didn’t stay for much longer period as the
government had laid restrictions on imports to conserve foreign exchange. In 1950, India
came out with its first car from Hindustan Motors, by the name ‘Baby Hindustan”, later
“Land Master’ and “Ambassador later came out with different models Mark I, II and IISI.
The latest “Nova” version of present age is that of mark IV version, another car
Contessa Classic was a real driving one in the company. The other players of this car
segment were Standard Motors originally in collaboration with Vanguard Motors produce
the Standard Vanguard Motors. Later they came out with models of Standard 8, Standard
10, Standard 2000, Standard payment and Standard Gazelle. They then shifted to Standard
Herald with mark I, II and IV versions. Lastly, we had Fiat in a joint venture with
premier Automobiles Limited came out with its first model of Fiat 1100 followed by Fiat
Elegant, fiat Minnicent, Premier, premier Padmini etc. the Ambassador and the Fiat were
the front runners with Herald coming in the third place. Until 1981, there were the three
dominated players in Indian scene. They are Hyundai Motors, Premier Automobiles &
Standard Motors.
MARUTI ENTRY:
The first car came in 1984 with the entry of Maruti Suzuki. With the advent of Maruti
Suzuki, Indian customers got a taste of modern technology, reliability and an awareness of
international quality standards. The Indian automobile industry, which had never
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faced competition due to policy, protected and closed economy was still slumbering and
was slow to react. A limited number of manufacturers continued to provide old and out
dated technology. Despite the rumbling in the industry which was started by the entry
of Maruti Suzuki, the existing auto manufacturers did very little to upgrade their old and
outdated technology. Hence Maruti became the predominant player in the Indian passenger
car market. But sadly owing to the foreign exchange constraint Maruti could not keep
place with global technological advances. In spite of joint venture with one of the reputed
manufacturers, India did not again much by way of technological advancement. Many of
the auto components including the gearbox were still imported negating much of the
MarutiUdyog Limited, over took all the dominate players with its attractive prices and with
introduction of fresh designs by1998, Maruti controlled 84% car market with its models
In1993, the opening up of the economy attracted several international manufacturers to set
The premium car segment was chosen by the new entrants as part of a market entrance
strategy to create brand awareness. Today we have the unusual spectacle of how many cars
chasing too few Indians for a country, which used to manufacture1.81 lakh cars per annum
in 1991.India today produces over 7.8 (2003) cars per annum, The Indian market has now
changed from sellers market to buyers market. The first MNC’s car to Indian market was
South Korea major DAEWOO. It’s Ceilo, in competition with Maruti Esteem
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followed by Peugeot 3091 Manufactured by premium automobiles in collaboration with
Peugeot of France.Premier again had a tie up with Fiat of Italy to launch Fiat- UNO in
competition with Zen. Mercedes tied up with Telco; General Motors tied up with
Hindustan Motors to bring out Opel Astra : Ford with Mahindra & Mahindra for Ford Ikon
: Mitsubishi with Hindustan Motors to produce “Mitsubishi Lancer” Honda’s tie up with
Hero Motors for the making of Honda City. Hyundai entered India through a 100% owned
subsidy to manufacture Hyundai Santro Followed by Telco’s own indigenous car Tata
Indica: finally Toyota with its version of Qualis all set to use the existing facilities and to
prop up the sagging global passenger car market. As mentioned earlier the premier car
segment was chosen by the new entrants are part of the market entrance to create brand
awareness. Almost all the entrants now have clear plans of introducing new products in the
mid size segments as step towards capturing volumes to make the business viable.
Customers tend hold back their purchase decisions in anticipation of new car launches,
price cuts, the glamour of millennium car and the other factors. All most all the entrants
created their own brand image for an average Indian car buyer; the entry of MNC’s is
definitely a big boon. The customer is getting the best technology on par with other
developed countries.
In 1769, a French engineer CAPTAIN NICHOLAS built first load vehicle propelled by
its own power. It was a three-wheeler, four-seated vehicle fitted with steam engine. It
attained a speed of about 21/2 M.P.H. for 15minutes. In 1880, German &French efforts
developed as internal combustion engine vehicle. The present day automobile is the
16
In1885, Benz in Germany built a tricycle propelled by an internal combustion engine. In
developed a car with minor executions, in corporate. The chief features of the automobile
as we know it today. In1890-95, the European designers were also active in the
development of automobile. In this period the Major developments were made in every
carry features. The designers tried produce a vehicle which will function at all times under
all conditions and which were comfortable to ride and easy to operate. Increased life of
tires, independent, front wheel suspension, four wheeler hydraulic brakes, high
compressions ratio, higher power, use of new materials and hundreds of other changes
have been made. In recent years the passenger’s car chassis construction has been forced to
shape itself redesigned bodies. While in the field of truck design, body-chassis problems
now get simultaneous consideration to a greater extent that every before. Fluid play
wheels, freewheeling over drives, automatic transmission and many other new features are
in the today’s car. The diesel engine was invented only a few years after the owners that
Overview:
The automotive sector is one of the core industries of the Indian economy, whose prospect
is reflective of the economic resilience of the country. With 4% contribution to the GDP
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and nearly 5% of the total industrial output, the automotive sector has become a significant
contributor to the exchequer. Continuous economic liberalization over the years by the
government of India has resulted in making India as one of the prime business destination
for many global automotive players. The automobile industry witnessed a growth of 19.35
The Indian automobile Industry has a mix of large domestic private players such as Tata,
Mahindra, Ashok Leyland, Bajaj, Hero Honda and major international players including
GM, Ford, Daimler Chrysler, Toyota, Suzuki, Honda, Hyundai and Volvo.
Advantage of India:
India holds huge potential in the automobile sector including the automobile component
sector owing to its technological, cost and manpower advantage. Further, India has a well-
testing and R&D centers. The country enjoys natural advantage and is among the lowest
cost producers of steel in the world. The Indian automobile industry today boasts of being
the
Second largest two Wheelers manufacturers in the world, World largest Motorcycle
manufacturer is in India, Second Largest tractor manufacturer in the world, Fifth largest
commercial vehicle manufacturer in the world and Fourth largest Car market in Asia.
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Investment opportunities:
Production:
One of the largest industries in India, automotive industry has been witnessing impressive
growth during the last two decades. Abolition of licensing in 1991, permitting automatic
approval and successive liberalization of the sector over the years have led to overall
development of the automobile industry. The freeing of the industry from restrictive
environment, on the one hand, helped it to restructure, absorb new technologies, align itself
to global developments and realize its potential and on the other hand, this has significantly
automobile industry witnessed a growth of 19.35 percent in April- July 2006, India is the
2nd largest two wheeler manufacturer in the world second largest tractor manufacturer in
the world, 5th largest commercial manufacturer in the world, 3rd largest car market in
Asia, Automobile industry Contributes 17% of the total indirect taxes collected by the
exchequer & is a driver of product and process technologies, and has become a excellent
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High machine tool capabilities
Surge in automobile industry since the nineties has led to robust growth of the auto
component sector in the country. In tandem with the industry trends, the Indian component
sector has shown great advances in recent years in terms of growth, spread, absorption of
new technologies and flexibility. Indian auto component industry has seen major growth
with the arrival of world vehicle manufacturers from Japan, Korea, US and Europe. Today,
India is emerging as one of the key auto components center in Asia and is expected to play
a significant role in the global automotive supply chain in the near future. The auto parts
industry has emerged as one of India's fastest growing manufacturing sectors and a
globally competitive one. The auto components industry in India is dominated by around
500 key players, which contribute more than 85 percent of India's production. The industry
has very deep forward and backward linkages with almost every other engineering
tools, steel, aluminum, rubber, plastics, electrical, electronics, forgings and machining.
India has also emerged as an outsourcing hub for auto parts for international companies
such as Ford, General Motors, Daimler Chrysler, Fiat, Volkswagen, and Toyota.
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India enjoys cost advantage with regard to castings and forgings. The manufacturing costs
in India are 25 to 30 percent lower than its western counterparts. India's competitive
advantage does not come from costs alone, but from its full service supply capability.
To encourage the smooth growth of the industry, the government of India has allowed
automatic approval for foreign equity investment up to 100 percent of manufacture of auto
components. Further, the engineering export promotion council under the aegis of Ministry
of Commerce and Industry, Government of India, over the years has been engaged in
promoting exports of engineering goods including auto parts. Besides, the Automotive
Exports:
1.4 billion. A high growth of 30 percent is expected to continue in 2005-06 also. Indian
auto-components are being exported throughout the world. During the year 2004-05, total
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Mahavir Motors
Started in the year 1998, we began our history by being one of the first to launch
Mercedes-Benz passenger cars in Hyderabad. Mahavir Group is the largest cars & bikes
Skoda, DSK Benelli& Indian Motorcycles for Hyderabad & Vijayawada. Through years of
dedicated hard work, we have become the leading dealerships in the states and cities of
What started off as a dealership for only Mercedes-Benz passenger cars has moved on to
something larger. We are now the largest dealers for Mercedes cars, buses, trucks; Škoda
cars; Isuzu SUVs and pickups; Indian motorcycles, DSK Benelli superbikes and Suzuki
The maruti showroom of jayabheriautomotives private limited has capital turn over 63 to --
-100 crores, it is the second largest company in India. The jayabehri group has expanding
Esteem.
Versa.
Zen Estilo.
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Maruti-800.
Ritz
Swift.
Swift Dzire.
Maruti SX4.
Grand vitara.
A – Star.
Wagon R.
Alto
Ertiga
S Cross
STD BS-III
AC BS-III
AC BS-III (M)
AC LPG BS_III
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AC LPG BS-III (M)
STD BS-III
LX BS-III
LX BS-III (M)
LXi BS-III
5 SEATER-BS-III
5 SEATER-BS-III (M)
8 SEATER –BS-III
8 SEATER-BS-III (M)
5 SEATER-LPG BS-III
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WAGON R On Road Price
LX BS-III
LX BS-III (M)
LXi BS-III
VXI BS III
LX Petrol/LPG
LX Petrol/LPG (M)
LXI Petrol/LPG
AX BS III
AX BS III (M)
A STAR LXI
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A STAR VXI
A STAR VXI(M)
A STAR ZXI
A STAR ZXI(M)
ESTILO – LX
ESTILO-LX (M)
ESTILO-LXI
ESTILO-LXI (M)
ESTILO-VXI
ESTILO-VXI (M)
ESTILO-VXI (ABS)
ESTILO-Sports
LXI BS III
VXI BS III
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VXI WITH ABS
Swift DzireZXI
Swift DzireLDI
Swift DzireVDI
Swift DzireZDI
SX4 VXI
SX4 ZXI
Service offered:
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• Three free services and paid service after sale of the car.
Working time:
Working hours inJayabheriAutomotives Pvt. Ltd are 8 hours per day commencing from
8AM to 6PM with two hours for lunch.
CHAPTER – III
PROMOTIONAL MIX: AN OVERVIEW
DEFINITION
activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value of customers, clients, partners, and society at large. "
The term developed the original meaning which referred literally to going to a market to
buy or sell goods or services. Seen from a systems point of view, sales process engineering
views marketing as "a set of processes that are interconnected and interdependent with
other functions, whose methods can be improved using a variety of relatively new
approaches."
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The Chartered Institute of Marketing defines marketing as "the management
profitably." A different concept is the value-based marketing which states the role of
included advertising, distribution and selling. However, because the academic study of
The overall process starts with marketing research and goes through market segmentation,
business planning and execution, ending with pre and post sales promotional activities. It is
also related to many of the creative arts. The marketing literature is also adept at re-
inventing itself and its vocabulary according to the times and the culture.
PROMOTIONAL STRATEGIES:
Another one of the 4P's is 'promotion'. This includes all of the tools available to the
marketing communications has its own 'promotions mix.' Think of it like a cake mix, the
basic ingredients are always the same. However if you vary the amounts of one of the
ingredients, the final outcome is different. It is the same with promotions. You can
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The elements of the promotions mix are:
Direct Mail.
The elements of the promotions mix are integrated to form a coherent campaign. As
with all forms of communication. The message from the marketer follows the
'communications process' as illustrated above. For example, a radio advert is made for a
car manufacturer. The car manufacturer (sender) pays for a specific advert with contains a
The message is decoded by a car radio (decoding) and the target consumer
interprets the message (receiver). He or she might visit a dealership or seek further
information from a web site (Response). The consumer might buy a car or express an
interest or dislike (feedback). This information will inform future elements of an integrated
promotional campaign. Perhaps a direct mail campaign would push the consumer to the
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PROMOTION MIX
Let us look at the individual components of the promotions mix in more detail.
Remember all of the elements are 'integrated' to form a specific communications campaign.
It is not enough for a business to have good products sold at attractive prices. To generate
CUSTOMERS.
"promotional mix" and consists of a blend of advertising, personal selling, sales promotion
and public relations tools. In this revision note, we describe the four key elements of the
promotional mix in more detail. It is helpful to define the four main elements of the
1. Personal Selling.
The sales person acts on behalf of the organization. They tend to be well trained in the
approaches and techniques of personal selling. However sales people are very expensive
and should only be used where there is a genuine return on investment. For example
salesmen are often used to sell cars or home improvements where the margin is high.
service or to act on any idea through the use of an oral presentation. Examples: Sales
31
presentations, sales meetings, sales training and incentive programs for intermediary
2. Sales Promotion.
Sales promotion tends to be- thought of as being all promotions apart from
advertising, personal selling, and public relations. For example the BOGOF promotion, or
Buy One Get One Free. Others include couponing, money-off promotions, competitions,
free accessories (such As. free blades with a new razor), introductory offers (such as buy
digital TV and get free installation), and so on. Each sales promotion should be carefully
coasted and compared with the next best alternative. Media and non-media marketing
Public Relations are defined as 'the deliberate, planned and sustained effort to
establish and maintain mutual understanding between an organization and its publics
(Institute of Public Relations). It is relatively cheap, but certainly not cheap. Successful
strategies tend to be long-term and plan for all eventualities. All airlines exploit PR; just
watch what happens when there is a disaster. The pre-planned PR machine clicks in very
quickly with a very effective rehearsed plan. The product can be as good as possible, but if
32
the company has a bad image already, people won't trust in the company, and won't be
4. Direct Mail.
Direct mail is very highly focused upon targeting consumers based upon a
database. As with all marketing, the potential consumer is 'defined' based upon a series of
attributes and similarities. Creative agencies work with marketers to design a highly
focused communication in the form of a mailing. The mail is sent out to the potential
consumers and responses are carefully monitored. For example, if you are marketing
medical text books, you would use a database of doctors' surgeries as the basis of your mail
shot.
Such approaches are very good for making new contacts and renewing old ones.
Companies will seldom sell much at such events. The purpose is to increase awareness and
to encourage trial. They offer the opportunity for companies to meet with both the trade
and the consumer. Expo has recently finish in Germany with the next one planned for
Japan in 2005, despite a recent decline in interest in such events. . You make your product,
and let potential buyers try the product, this way; you know directly what people see in
your product. The downside, your competitor can see exactly what you are doing.
6. Advertising
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Advertising is a 'paid form' communication. It is used to develop attitudes, create
awareness, and transmit information in order to gain a response from the target market.
There are many advertising 'media' such as newspapers (local, national, free, trade),
magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor
7. Sponsorship
cause or image. Companies will sponsor sports events such as the Olympics or Formula
One.
8. Word Of Mouth
Among all the promotional activities, the word of mouth is the best activity. It is
used to develop attitudes, create awareness, and transmit information in order to gain a
response from the target market. There are many advertising 'media' such as newspapers
(local, national, free, trade), magazines and journals, television (local, national, terrestrial,
customer's questions
Effective at reaching a wide
34
audience make a final purchasing decision
products
Too much promotion may
35
Public Often seen as more "credible" - Risk of losing control - cannot
Relations since the message seems to be always control what other people
coming from a third party (e.g. write or say about your product
magazine, newspaper)
With the invention of the wheel in 4000 B.C, man's journey on the road of
mechanized transport had begun. Since then he continually sought to devise and
automated, labor savings machine to replace the horse. Innumerable attempts reached
conclusion in the early 1760s with the building of the first steam tractor driven by a French
It was however left to Karl Benz and Gottlief Daimler to produce the first vehicles
powered by the internal combustion engine in 1885. It was then that the petrol engine was
introduced, which made the car practical and safe proposition. The cars in this period were
more like the cars on our roads with cars came the era of speed.
The first ever land speed record was established about 100 years back, in 1898.
Count Gaston do Chasselouppp-laubat of France drove an electric car (in Archeries near
Paris) at a speed of 39.24 miles per hour. This flagged off the era of wheels were racing,
which lasted till 1964, after which et rocket propelled vehicles were allowed.
may be of interest to customers, and the strategy to use in sales, communications and
business development. Companies create value for customers and build strong customer
36
relationships in order to capture value from customers in return through an integrated
process.
Marketing is used to identify the customer, to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be concluded that
evolution of marketing was caused due to mature markets and overcapacities in the last 2-3
centuries. N9edcdl Companies then shifted the focus from production to the customer in
The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions. It
anticipate the needs and wants of consumers and satisfy these more effectively than
competitors
Promotion Strategies
37
A successful product or service means nothing unless the benefit of such a service
Advertising: Is any non-personal paid form of communication using any form of mass
media?
Public relations: Involves developing positive relationships with the organization media
public. The art of good public relations is not only to obtain favorable publicity within the
media, but it is also involves being able to handle successfully negative attention.
Sales promotion: Commonly used to obtain an increase in sales short term. Could involve
Direct Mail: Is the sending of publicity material to a named person within an organization.
There has been a massive growth in direct mail campaigns over the last 5 years. Spending
on direct mail now amounts to £18 are a year representing 11.8% of advertising
expenditure (Source: Royal Mail 2000). Organizations can pay thousands of pounds for
allowing them to send publicity material to a named person within their target segment. By
personalizing advertising, response rates increase thus increasing the chance of improving
sales. Listed below are links to organization whose business involves direct mail.
38
An effective communication campaign should comprise of a well thought out
message strategy. What message are you trying to put across to your target audience? How
will you deliver that message? Will it be through the appropriate use of branding? Logos or
slogan design? The message should reinforce the benefit of the product and should help the
Media strategy refers to how the organization is going to deliver their message.
What aspects of the promotional mix will the company use to deliver their message
strategy. Where will they promote? Clearly, the company must take into account the
readership and general behavior of their target audience before they select their media
strategy. What newspapers do their target markets read? What TV programmers do they
watch? Effective targeting of their media campaign could save the company on valuable
financial resources.
create demand. A push strategy is where the manufacturer concentrates some of their
them to stock the product. A combination of promotional mix strategies are used at this
stage aimed at the retailer including personal selling, and direct mail. The product is
39
A pull strategy is based around the manufacturer promoting their product amongst
the target market to create demand. Consumers pull the product through the distribution
channel forcing the wholesaler and retailer to stock it, hence the name pull strategy.
Organisations tend to use both push and pull strategies to create demand from retailers and
consumers
40
AIDA is a communication model, which can be used by firms to aid them in selling
their product or services. AIDA is an Acronym for Attention, Interest, Desire, Action..
When a product is launched, the first goal is to grab attention. Think, how can an
organization use it skills to do this? Use well-known personalities to sell products? Once
you grab attention how can you hold Interest, through promoting features, clearly stating
the benefit the product has to offer. The third stage is desire, how can you make the
product desirable to the consumer? By demonstrating it? The final stage is the purchase
action; if the company has been successful with its strategy then the target customer should
As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the healthy success
41
Introduction:
target audience of its entry. Television, radio, magazine, coupons etc may be used to push
the product through the introduction stage of the lifecycle. Push and Pull Strategies will be
Growth:
As the product becomes accepted by the target market the organization at this
stage of the lifecycle the organization works on the strategy of further increasing brand
Maturity:
At this stage with increased competition the organization take persuasive tactics
to encourage the consumers to purchase their product over their rivals. Any differential
42
advantage will be clearly communicated to the target audience to inform of their benefit
Decline:
As the product reaches the decline stage the organization will use the strategy of
range of tactical techniques designed with in a strategic marketing frame work, to add
value to a product or service in order to achieve a specific sales & marketing objectives:
Alternative Definition:
They work.
43
They can be clearly targeted.
Objectives:
To increase sales.
To maintain competitiveness.
To challenge competitors.
Classification:
44
Trade promotion — targeted intermediaries in the channel of distribution.
Consumer Promotions:
purchasing.
Roles:
To encourage sales.
To increase usage.
Trade shows
Banners & Streamers
Trading stamps
Loyalty cards
Money off coupons
Rebates
Price off
BOGOF
Bargain packs
Bundling.
Trade promotion:
Sales promotion to gain reseller support & to improve reseller effort. Sales
45
To assist sales force.
Techniques of Trade Promotion:
Price deals.
Promotion allowances.
Sales contests.
Calendars.
Gifts.
Co-operative advertising.
Trade shows.
Meetings.
Catalogues.
Sales force promotion:
Sales promotion designed to motivate the sales force & make sales force selling
efforts more effectiveness.
Displays.
Sales aids.
Competition.
Meetings & conventions.
Sales promotion.
Arguments against.
Complements media advertising.
Benefit short lived sales fall off after the promotion is finished.
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Internet Promotion:
The development of the World Wide Web has changed the business environment
forever. Dot com fever has taken the industry and stock markets by storm. The e-
Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week.
organization. Consumers can now obtain instant information on products or services to aid
them in their crucial purchase decision. Sony Japan took pre-orders of their popular Play
station 2 consoles over the net, which topped a 1 million after a few days, European
football stars are now issuing press releases over the web with the sites registered under
Advertisers have now moved their money over to the internet as customers are on
average spending more time online then watching TV. Popular ways to advertise seem to
The Institute of Practitioners in Advertising (IPA), the body that represents advertising
"The means of providing the most persuasive possible selling message to the right
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Kotler and Armstrong provide an alternative definition:
"Advertising is any paid form of non-personal presentation and promotion of ideas, goods
and services through mass media such as newspapers, magazines, television or radio by an
identified sponsor".
specific target audience during a specified period of time. Advertising objectives fall into
Marketers should remember that the role of advertising is to create demand for a
product. The amount spent on advertising should be relevant to the potential sales impact
of the campaign. This, in turn will reflect the characteristics of the product being
advertised. For example, new products tend to need a larger advertising budget to help
build awareness and to encourage consumers to trial the product. A product that is highly
differentiated may also need more advertising to help set it apart from the competition -
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Setting the advertising budget is not easy - how can a business predict the right amount to
spend. Which parts of the advertising campaign will work best and which will have
relatively little effect? Often businesses use "rules-of-thumb" (e.g. advertising/sales ratio)
Spending a lot on advertising does not guarantee success (witness the infamous
John Cleese campaign for Sainsbury). Research suggests that the clarity of the advertising
message is often more important than the amount spent. The advertising message must be
Believable - a difficult task, since research suggests most consumers doubt the truth
of advertising in general
There are a variety of advertising media from which to choose. A campaign may
use one or more of the media alternatives. The key factors in choosing the right media
include:
Reach - what proportion of the target customers will be exposed to the advertising?
Frequency - how many times will the target customer be exposed to the
advertising message?
Media Impact - where, if the target customer sees the message - will it have most
49
impact? For example does an advert promoting holidays for elderly people have
more impact on Television (if so, when and which channels) or in a national
Another key decision in relation to advertising media relates to the timing of the
campaign. Some products are particularly suited to seasonal campaigns on television (e.g.
Christmas hampers) whereas for other products, a regular advertising campaign throughout
the year in media such as newspapers and specialist magazines (e.g. cottage holidays in the
2. The Sales Effects - has the campaign generated the intended sales growth? This
"The planned and sustained effort to establish and maintain goodwill and natural
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A business may have many "publics" with which it needs to maintain good
relations and build goodwill. For example, consider the relevant "publics" for a publicly-
Employees
Shareholders
Trade unions
Members of the "general public"
Customers (past and present)
Pressure groups
The medical profession
Charities funding medical research
Professional research bodies and policy-forming organizations
The media
Government and politicians
Reinforcing favorable opinions transforming perhaps neutral opinions into positive ones
There are many techniques available to influence public opinion, some of which are more
Consumer communication
Customer press releases
Trade press releases
Promotional videos
Consumer exhibitions
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Competitions and prizes
Product launch events
Celebrity endorsements
Websites
Business Communication
Trade Exibitions
52
It is actually quite difficult to measure whether the key messages have been communicated
to the target public. In any event, this could be quite costly since it would involve a large
amount of regular research. Instead, the main measures of effectiveness concentrate on the
Monitoring the amount of media coverage obtained (press cuttings agencies play a
relations efforts.
Personal selling is oral communication with potential buyers of a product with the
intention of making a sale. The personal selling may focus initially on developing a
relationship wit/i the potential buyer, but will always ultimately end with an attempt to
Personal selling is one of the oldest forms of promotion. It involves the use of a
sales force to support a push strategy (encouraging intermediaries to buy the product) or a
pull strategy (where the role of the sales force may be limited to supporting retailers and
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Kotler describes six main activities of a sales force:
Communicating - with existing and potential customers about the product range
Selling - contact with the customer, answering questions and trying to close the sale
Information gathering - obtaining information about the market to feedback into the
Allocating - in times of product shortage, the sales force may have the power to
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Main Disadvantages of Using Personal Selling
The main disadvantage of personal selling is the cost of employing a sales force.
Sales people are expensive. In addition to the basic pay package, a business needs to
provide incentives to achieve sales (typically this is based on commission and/or bonus
arrangements) and the equipment to make sales calls (car, travel and subsistence costs,
In addition, a sales person can only call on one customer at a time. This is not a
"I know that half of my advertising budget is wasted, but I'm not sure which half
Advertising is just one of the variables that might affect sales in a particular period. These
include:
Availability of product (e.g. does the retailer actually have stock to sell?)
How can a business know whether a specific advertising campaign was effective?
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As a percentage of sales, advertising expenditure varies enormously from business
to business, from market to market. For example, the leading pharmaceutical companies
spend around 20% of sales on advertising, whilst business such as Ford and Toyota spend
less than I %. An average for fast- moving consumer goods markets ("FMCG") is around
8-10% of sales.
In practice, the following approaches are used for setting the advertising budget:
In markets with a stable, predictable sales pattern, some companies set their
advertising spend consistently at a fixed percentage of sales. This policy has the advantage
However, there are some disadvantages with this approach. This approach assumes
that sales are directly related to advertising. Clearly this will not entirely be the case,
since/other elements of the promotional mix will also affect sales. If the rule is applied
when sales are declining, the result will be a reduction in advertising just when greater
This approach has widespread use when products are well-established with
predictable sales patterns. It is based on the assumption that there is an "industry average"
A major problem with this approach (in addition to the disadvantages set out for the
56
advertising spend — it makes them "lazy". It could also prevent a business with
competitive advantages from increasing market share by spending more than average.
The task approach involves setting marketing objectives based on the "tasks" that
These tasks could be financial in nature (e.g. achieve a certain increase in sales,
profits) or related to the marketing activity that is generated by the campaigns. For
example:
measured
The residual approach, which is perhaps the worst of all, is to base the advertising
budget on what the business can afford — after all other expenditure. There is no attempt
to associate marketing objectives with levels of advertising. In a good year large amounts
of money could be wasted; in a bad year, the low advertising budget could guarantee a
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Marketing planning - setting marketing objectives Introduction
Objectives set out what the business is trying to achieve. Objectives can be set at two
levels:
These are objectives that concern the business or organization as whole Examples
We aim to achieve an operating profit of over £10 million on sales of at least £100
million
We aim to increase earnings per share by at least 10% every year for the
foreseeable future
2) Functional level
We aim to build customer database of at least 250,000 households within the next
12 months
We aim to achieve 75% customer awareness of our brand in our target markets
Both corporate and functional objectives need to conform to the commonly used SMART
criteria.
58
The SMART criteria (an important concept which you should try to remember and apply
them
Time Bound - objectives should be set with a time-frame in mind. These deadlines
Values form the foundation of a business' management style. Values provide the
We are professional
59
We respect each other
everyone can benefit from the power of communication skills & technology.
Many Japanese businesses have used the value system to provide the motivation to
make them global market leaders. They have created an obsession about winning that is
communicated at all levels of the business that has enabled them to take market share from
competitors that appeared to be unassailable. For example, at the start of the 1970's
Komatsu was less than one third the size of the market leader — Caterpillar — and relied
on just one line of smaller bulldozers for most of its revenues. By the late 1980's it had
passed Caterpillar as the world leader in earth-moving equipment. It had also adopted an
aggressive diversification strategy that led it into markets such as industrial robots and
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To succeed in the long term, businesses need a vision of how they will change and
improve in the future. The vision of the business gives it energy. It helps motivate
What are the components of an effective business vision? Davidson identifies six
Is motivating
Some of the most common methods used in sales promotion strategies include:
Coupons
Price discounting
Gift with purchase offers
Sweepstakes
Sampling
Mail in offers and rebates
Refund and premium offers
Group promotions
Frequent user/loyalty incentives
Point-of-sale displays
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CHAPTER – IV
ANALYSIS OF SURVEY RESULTS ON MARKET PROMOTION: CUSTOMERS
PERSPECTIVE
1. Table 4.1 Customers Response
Age
21-30 27 27
31-40 26 26.
41-50 24 24
51 & Above 23 23
Interpretations: Above table 4.1 indicates that age of respondents, 27% age in between
21-30. 26% in between 31-40 and 24% age In between 41-50 years. The same
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2. Table 4.2 Customers Response
Gender
Male 83 83%
Female 17 17%
Interpretations: Above table 4.2 indicates that gender of respondents, 83% male and 17%
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3. Table 4.3Customers Response
Educational Qualification
Undergraduate 12 12%
Graduate 43 43%
12% undergraduates, 43% are the graduates and 45% are the post graduates. The same
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4. Table 44 Customers Response
Martial Status
Married 84 84%
Unmarried 16 16%
300
250
No.of respondents
200
150
100
50
0
Married Unmarried
Marital Status
Interpretations: Above table 4.4 indicates that the martial status of respondents, 16% are
unmarried and 84% are unmarried .The same presented in figure 4.4
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5. Table 4.5 Customers Response
Occupation
Employed 90 90%
Housewife 2 2%
Business 5 5%
Retired 3 3%
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Table-4.6:Why Have You Chosen This Model When You Can Find Similar Model In
Other Brands?
40
35
30
25
20
15
10
5
0
STYLISH COMFORT SAFETY LOW PRICE
INTERPRETATION
People choose the brand mostly because of the comfort it has. That’s why 40% of people
chosen comfort. 30% because of its stylish features.
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Table-4.7: Where Do You Go To Service Your Vehicles Regularly?
35
30
25
20
15
10
0
VARUN AVINASH ADISHWAR OTHERS
INTERPRETATION:
People go for servicing there vehicles either to the service locations like varun,avinash
,Adishwar or 35% mostly other locations
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Table-4.8: If the answer for the above question is other, why do you choose other
garages when qualified garages are there to service your vehicles?
Chart
-4.8:
45 Custo
40 mers
Respo
35 nse
30
25
20
15
10
0
QUICK TIME SERVICE COST DISTANCEIS SMALL
INTERPRETATION
For servicing car people mostly go for other garages due to quick time delivery 40% of
people agree for it
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Table-4.9: Have Do You Come Across Any Promotional Activity Of The Company?
70
60
50
40
30
20
10
0
YES NO
INTERPRETATION
60% of people are not aware of the promotional activities of the company
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Table-4.10:Do You Known That Company Providing Financial Assistance Througth
Banks For Purchasing The Product?
2. NO 40 40
60
40
Yes No
INTERPRETATION:
Company is providing financial assistance through banks 60% of people are aware of this
assistance
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Table-4.11:Which Of The Add Is More Attractive And up to The Mark Among
Mercedes Benz Models?
1. 20 20
2. WAGONR 20 20
3. SX4 60 60
4. TOTAL 100 100
60
20 20
INTERPRETATION:
60% of people are attracted and impressed with sx4 advertisement
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Table-4.12: Is Jayabheri Automobile Providing Any Other Offer More Than
The Competitors Do?
45
40
35
30
25
20
15
10
0
YES NO NOT RESPONDED
INTERPRETATION:
30% of people said that jayabehri is providing other offers compare to there competitor
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Table-4.13: Did You Buy Your vehicle During the Festival Promotion?
1. YES 25 25
2 NO 75 75
3. TOTAL 100 100
80
70
60
50
40
30
20
10
0
Yes No
INTERPRETATION:
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Table-4.14: Who’s Advertising Strategies Has Highest Rating among the Following?
2 MARUTI SUZUKI 55 55
3. TATA MOTORS 10 10
4. HONDA MOTORS 10 10
60
50
40
30
20
10
0
HUNDAI MARUTI SUZUKI TATA MOTORS HONDA MOTORS
INTERPRETATION:
Hyundai advertisement strategy is very impressive when compare with others
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Table-4.15: Overall Satisfaction?
60
50
40
30
20
10
0
EXCELLENT GOOD AVERAGE POOR
INTERPRETATION:
Response to overall satisfaction 50% of people said good and 30% people said excellent.
This shows the maruti Suzuki brand image.
76
CHAPTER-V
FINDINGS AND SUGGESTIONS
Findings
It is observed that 90 %t of the respondents who visit the showroom, most of them
like the various models of cars, offered in the showroom and the ambience,
The reception in the showroom is average and sales persons response is very
effective.
Even though people contemplate to buy four /two wheelers they will decide their
preference on the combination of comfort and price, and price and brand image.
It is observed that majority of the customers are satisfied the services of Adishwar
From the detailed study it is arrived that most of the samples are not aware of
In the study it was experienced that company’s sales promotion activities are based
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Suggestions
Auto Diagnostics Pvt. Ltd.)have to be made more often in all leading local cable
It is being found that only for new launch model, Mahavir Motors(Adishwar Auto
Diagnostics Pvt. Ltd.)is making sales promotional offers vary frequently hence it is
Mahavir Motors (Adishwar Auto Diagnostics Pvt. Ltd.) offers various sales
The Mahavir Motors(Adishwar Auto Diagnostics Pvt. Ltd.) should use more
consumer promotional tools like price discounts contest and sweep stakes, coupons,
Mahavir Motors(Adishwar Auto Diagnostics Pvt. Ltd.) can also conduct some road
shows relating to the sales promotional offer provided by them to its customers
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Conclusion
This organization was a place where there are few major players and many local and
regional players. The company which I represented was Mahavir Motorswith reference to
Adishwar Auto Diagnostics Pvt. Ltd which gave me lot of opportunity and scope to
regarding the company and also the customers has been collected from the survey, which
helped me to clearly understand the real problems faced by the marketers to distribute and
also make the distributors to sell the company’s product in market.The suggestion made to
the company is applicable for the benefit of the company in order to survive and grow in
the existing scenario with large number of competitors craving for the same market.Thus,
finally it can be said that the industry needs lot of change in management activities to be
79
BIBLIOGRAPHY
BOOKS:
WEBSITES:
www.mahavir-motors.in
www.google.com
JOURNAL:
FORTUNE MAGAZI NE
COMPANY REPORTS
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