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A study on promtion activities conducted at arpita bajaj, hassan



A study on promtion activities conducted at arpita bajaj, hassan

A study on promtion activities conducted at arpita bajaj, hassan



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A study on promtion activities conducted at arpita bajaj, hassan A study on promtion activities conducted at arpita bajaj, hassan Document Transcript

  • Baja Auto Ltd Sales Promotion INTRODUCTION “Sales Promotion is a Powerful Marketing Tool”. Marketing promotion helps marketers communicate information to potential customer about the products existence value and the benefits that can be accrued from it. It comprises one of the four elements of the marketing mix. Designing and effective marketing communication mix helps marketers to attract persuade, urge and remind customers of the company’s brand. Consumers have `something' to look forward to and there is also an opportunity given to them to articulate their experiences associated with the brand. This is not to suggest that the typical sales promotion more for same price or `one free' with a purchase should never be done. To insure an excellent promotion the marketer must create a strong connection between the consumers. The connection must relate to the brand identity, the consumer and the understanding that promotions can and still move more than sales volume. Compared with that communication option available to marketers in the past, there are now a larger and greater diversity of communication options available. Thus, the design implementation and evaluation of the communication program in the current business scenario pose a significant challenge to marketers. Sales promotion is a form of attracting the consumers by offering them various benefits in the form of incentives or by adding value to the products. Sales promotions are generally aimed at resellers and final consumers. The various kinds of sales Promotional tools include coupons, discounts, rebates, samples, etc. most often organizations spend more money on sales promotions than on advertising. H.R.Institute of Higher Education, Hassan 1
  • Baja Auto Ltd Sales Promotion PROBLEM STATEMENT “A STUDY ON SALES PROMOTION CREATIVITY OF ARPITA BAJAJ.” The study is aimed at making an analysis of Arpita Bajaj in order to find out which sales promotional activities are helping them to increase their sales. The main rationale behind an analysis is to gain realistic corporate knowledge and for the purpose of value addition. Management thesis helps in every possible way to get knowledge about sales promotion activities and its impact on Arpita Bajaj. The Findings & Suggestions helps Arpita Bajaj improve their existing strategies and to overcome any obstacles so that it results in long term survival of an organization. Thesis results provides the data to know how sales promotion activities are building awareness about the organization and its products on a regular basis and what needs to be expected from the customers in return. The study is fully fledged in all magnitude here and the same has been collected by using primary data with market survey and by using questionnaires. By conducting this study I came to know about the impact and effect of sales promotional activities on Arpita Bajaj and different sales promotion strategy followed by Arpita Bajaj to increase customer and sales. H.R.Institute of Higher Education, Hassan 2
  • Baja Auto Ltd Sales Promotion OBJECTIVES • To know and understand various sales promotion activities used by Arpita Bajaj. • To know and trace out the effectiveness of different sales promotion activities used by Arpita Bajaj. • To analyze the customer’s attitude towards the two wheelers manufactured by “Bajaj Auto Ltd”. • To evaluate the market penetration rate and the Strategies of “Bajaj Auto Ltd”. • To analyze the promotional activities by Arpita Bajaj. • To understand the marek domination by Bajaj Auto Ltd. in two wheelers category. • To know the competitors of Bajaj Auto Ltd. two wheelers and their shares in the market. • To analyze the problems faced by Arpita Bajaj. H.R.Institute of Higher Education, Hassan 3
  • Baja Auto Ltd Sales Promotion SCOPE OF THE STUDY • The main scope of the study is to understand about of various sales promotional activities which increase the sales. • Reaching the target within a short span of time which increases the productivity & market image. • To improve the business environment within the organization. • Identifies which sales promotion activities are effective. • Customers will get to know about “What can be expected from the Organization.” H.R.Institute of Higher Education, Hassan 4
  • Baja Auto Ltd Sales Promotion RESEARCH METHODOLOGY The research conducted is concentrated much on the following information • How do customers make a purchase decision? • What are the various factors affecting the potential customers during the process of selection? • Brand awareness in the minds of the customers about the company? • What are the benefits, improvements required by the customers? • What is the effect of Bajaj’s Advertising/Promotion Campaign? • How does the competitor’s influence on the existing customers? METHODOLOGY Both primary and secondary data have been collected to bring this project report, primary data have been collected through the personal interview from the respondents. The survey of the respondents was made on the basis of Random Sampling Method. Questionnaire had been issued to the respondents to avoid unnecessary delay and to make filling task easy the questionnaires were prepared in structural manner. TECHNIQUES OF DATA COLLECTION A questionnaire is designed to collect data and information from the opinion survey of the product. It is meant to extract useful information about the various factors influencing consumer behaviors. Care is taken to arrange the questions in logical sequence and to form them in a simple and precise manner to enable to collect authentic and accurate response from the customer. H.R.Institute of Higher Education, Hassan 5
  • Baja Auto Ltd Sales Promotion The data collected through questionnaire are analyzed and interpreted conclusion in a systematic. FIELD WORK The field work was conducted in the month of March in the Hassan city. The interview with respondents with a time span of 5-10 minutes on an average to obtain the required formation for the structured questionnaire was used. DATA ANALYSIS TECHNIQUES Tabulation, percentage calculation, bivariate table, ranking, bar diagrams, pie charts is the techniques to analyze the data collected from the consumers. Graphs are also drawn and complied. H.R.Institute of Higher Education, Hassan 6
  • Baja Auto Ltd Sales Promotion LIMITATIONS OF THE STUDY • Data collection is bit complicated • Lack of co-operation from the staff. • Customer response was biased. • Since the sample size is limited, it may lead to the partial true factor about the research. H.R.Institute of Higher Education, Hassan 7
  • Baja Auto Ltd Sales Promotion 2. COMPANY PROFILE 2.1 INDUSTRY SCENARIO 2.1.1 HISTORY OF TWO- WHEELER The Encyclopedia describes a motorcycle as a bicycle or tricycle propelled by an internal-combustion engine (or, less often, by an electric engine). The motors on minibikes, scooters, and mopeds, are usually air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement, the multiple- cylinder motorcycles have displacements of more than 1,300 cubic cm. The automobile was the reply to the 19th-century dream of self-propelling the horse-drawn carriage. Similarly, the invention of the motorcycle created the self- propelled bicycle. The first commercial design was a three-wheeler built by Edward Butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two steer able front wheels and connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles, or pedal cycles by adding small, centrally mounted spark ignition engines. There was then felt the need for reliable constructions. This led to road trial tests and competition between manufacturers. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. Such were the proving ground for many new ideas from H.R.Institute of Higher Education, Hassan 8
  • Baja Auto Ltd Sales Promotion early two-stroke-cycle designs to supercharged, multivalent engines mounted on aerodynamic, carbon fiber reinforced bodywork. The two-wheeler industry today has a significant role in the Indian Economy. With an annual turnover of Rs. 6,200 crores and a compounded average growth of 10 per -cent in the recent years, it is one if the few industrial sectors in the growth phase today. The reasons for this are not far to seek. The consumer’s who wants to be mobile today considers personal transportation as one of his basic needs. In India, the two-wheeler is used in variety of purposes, particularly in urban areas communicating to work, visiting people, carrying loads, outdoors jobs like selling and the like. In rural areas, it enables people to travel more frequently to nearby towns for their daily needs. In other words, it has also become a valuable support for increasing productivity and profits, besides helping personal transportation. The year 1997 was a difficult period for the automobile sector with the major sector with major player hit by the recession. However, two- wheelers came through un- scratched with a modest three per cent growth. One of the primary reasons for this has been the robust growth of the rural market. A series of good monsoons and high prices for agricultural commodities have increased the purchasing power of rural customers. Today, the rural market of over six lakhs Indian villages contributes 35 percent to total two wheeler sales. 2.1.2 THE TWO-WHEELER INDUSTRY BASICALLY COMPRISES MOTOR CYCLES The motorcycles segment grew by 28% in terms of sales in 1995, which is remarkable by all standards. H.R.Institute of Higher Education, Hassan 9
  • Baja Auto Ltd Sales Promotion In the 1980’s the only available motorcycles in the Indian market were the conventional indigenously build Rajdoot, Bullet and Yezdi. This changed drastically when Japanese introduced their motorcycle in Indian market. The superior styling and better ergonomics led to increase in the market share. SCOOTERS In 94 - 95 the scooter segment accounted for 46 - 80% of two wheeler industries crossed the one million mark. As such the scooters segment has grown by 34% - 37%, which is one of the segment achievements of industry. The most important contribution to the segment is Baja Auto with an installed capacity of 12.72-lakh scooters per annum. In act the company is the largest manufacture of two-wheeler in the country and fourth largest in world. Other Companies, which involve in manufacturing scooter are LML with a capacity if 20,000 scooter per annum and Kinetic Honda. In both the companies (LML Limited and Kinetic Honda) foreign partners enjoyed a majority stake. MOPEDS In 1972 Indian customers was introduced to the models of two-wheeler, which was popularly known as Mopeds. The segment was dominated by Luna, which become virtually to generic name for mopeds and come to be identified with lower middles class people of the country because it was the cheapest available two wheeler with maximum offered mopeds are for this smallest chunk in the Industry. However this segment has failed to grow especially compared to Motorcycles and Scooters. During the 1980,s mopeds are quite popular in first half of the 1980’s, the scooters showed a phenomenal growth of 65% during 1980 – 85. During 1994 H.R.Institute of Higher Education, Hassan 10
  • Baja Auto Ltd Sales Promotion mopeds registered a growth of just 13% Kinetic Engineering is one of the leading producers of mopeds in India. A major part of growth on the two wheeler industry has come from Motorcycles especially the Indo – Japanese 100 CC motorcycles which are considered fuel efficient, reliable and suited for rough roads. Scooterettes are also growing at a fast pace and are being increasingly perceived as a better option providing convenience and modern style, by urban customers. In this category, TVS Scooty holds a dominant market share. TVS Scooty, launched in 1994, with its elegant looks has definitely spurred the growth of this segment. The two-wheeler industry has come a long way from a modest production of 150 units in 1950 to three million units per year in 1998. PROMISING FUTURE The future out look for the industry looks promising. Rising income levels in both urban and rural markets will ensure a rising market for the two-wheeler, considered a basic need. Most of the leading players such as TVS, Hero Honda and Bajaj Auto gearing up to strengthen their presence in this segment with a range of new products that will address the needs of specific consumer demand. Today customer preferences are driving the industry. Reliability, modern styling and economy are demanded by the mass segment while convenience the important features for the emerging segment the power and pleasure of riding a two wheeler as well. The manufacturers are responding to these customers needs with the introduction of new models and modifying existing models. The nest few years will see a flood of new vehicles from various manufactures. These vehicles will only have not only have to improved aesthetics and comfort but also be environmental friendly. The motorcycle segment will also see many new models introductions from TVS, Hero Honda, Bajaj and escorts. The market will see higher capacity vehicles in the 125 CC to 175 cc range compared to the predominantly 100 CC motorcycles sold now. The two-wheeler industry is geared up and going full steam ahead into the next century. H.R.Institute of Higher Education, Hassan 11
  • Baja Auto Ltd Sales Promotion 1990 – 91 CHANGING PROFILE OF TWO WHEELRS INDUSRTY 26% 50% Scooters Mopeds Motorcycles 24% 1997 – 98 H.R.Institute of Higher Education, Hassan 12
  • Baja Auto Ltd Sales Promotion 37% Scooters 39% Mopeds Motorcycles 20% 2.2 COMPANY PROFILE AN EYE SIGHT ON BAJAJ AUTO LIMITED H.R.Institute of Higher Education, Hassan 13
  • Baja Auto Ltd Sales Promotion 2.2.1INTRODUCTION The Bajaj group came into existence during the turmoil and the heady exploria of Indian’s freedoms struggle. Jamanlal Bajaj, founder of the Bajaj group, was a confident and disciple of Mahatma Gandhiji and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the company today, are often traced back to its birth during those long days of relentless devotion to a common cause. Kamalnayan, the eldest son of Jamanlal Bajaj, succeeded his father in 1942, at the age of twenty seven. Putting the nation before business, be devoted himself to the latter only after India achieved independence in 1947. But when be did so, he put his heart and soil into it. Within a short while, he not only consolidated the group, but also diversified into various manufacturing activities, elevating the group to the status it enjoys till this day. Rahul Bajaj heads the group. He has been the chairman of Bajaj since 1968is recognized as one of the most out standing business leaders in India. As dynamic and ambitions as his illustrious predecessors, he has been recognized for his achievements at various national and international forums. Bajaj is currently India’s largest two and three wheeler manufacturer and one of the biggest in the world. Bajaj has the long left behind its annual turnover of Rs. 72 million (1968), to currently register an impressive figure of Rs 42.16 billion (US$ 936 million). 2.2.2 CONSUMER AWARENESS ENRICHMENT TIPS To keep your vehicle up to date, few maintenance tips are as follows,  Pre delivery checks.  Tips on using a new vehicle.  Washing tips.  Ideal maintenance schedule.  Daily checks.  Free service checks.  Regular service checks. H.R.Institute of Higher Education, Hassan 14
  • Baja Auto Ltd Sales Promotion  Pollution control. 2.2.3 PRE DELIVERY CHECKS Following are the general guidelines you should follow While selecting a vehicle.  Check for smooth operation of fuel coak lever and accelerator.  Check engine idling and get it adjusted.  Check gear shifting and clutch lever for proper.  Adjustment and Working.  Check whether switches, speedometer and fuel meter  Operations for satisfactory working.  Check steering cum ignition lock and other locks e.g.  Luggage box, toolbox etc for proper working.  Check front and rear brakes for effective working.  Test drives the vehicle; see if any past is making an unwanted noise. 2.2.4 TIPS ON USING A NEW VEHICLE  Do not cross the 40 Kmph limit (up to 500Km) to Kmph (up to 200 Km)  Do not race the engine too much.  Do not start moving or racing the engine immediately after starting. Keep the engine during a few minutes to let the flow to all the engine parts.  Do not run the engine at constant speed for along time. Vary the speed from time to time.  Follow the specific instructions given in owner’s manual it dry with a Clean cloth.  Dry the vehicle and oil it. 2.2.5 FREE SERVICE CHECKS H.R.Institute of Higher Education, Hassan 15
  • Baja Auto Ltd Sales Promotion  Ensure that you get the following checks done in your free service.  Oil change – The oil level should be between the maximum and Minimum level  Air filters cleaning.  Spark plug cleaning and setting.  Fuel filters cleaning.  Engine, silencer decarburization  Tightening and adjustments of all major bolts / nuts, Control cables. 2.2.6 POLLUTION CONTROL Important tips to keep the emission low.  Keep the sparkplug clean and maintain specified gap Between electrodes.  Keep the air filter clean.  Get the carburetor tuned at an authorized service centre.  Avoid use of excess oil in fuel.  Avoid use of adulterated fuel.  Check the emission level once in 3 months and get the Engine tuned if it is above the prescribed limit.  Use the correct percentage of 2T oil. H.R.Institute of Higher Education, Hassan 16
  • Baja Auto Ltd Sales Promotion 2.2.7 NON USE MAINTENANCE  Keep the vehicle thoroughly.  Empty the fuel tank.  Start the Engine, consume the fuel inside the carburetor.  Inflate tyre to specified pressure, support the vehicle Such that both the tyres are not loaded.  Grease all unpainted parts.  Cover the vehicle properly.  If the vehicle is fitted with battery, remove it from Vehicle and subject it to bench charging, every fortnight. 2.2.7 THE CONSOLIDATED FINANCIAL RESULTS INCLUDE THE RESULTS OF THE FOLLOWING COMPANIES Name of the % Share holding Segment Consolidated as company and voting power of Bajaj Auto Ltd and subsidiaries A) Bajaj Auto 100 % Investment Subsidiary Holdings Ltd H.R.Institute of Higher Education, Hassan 17
  • Baja Auto Ltd Sales Promotion B) Bajaj Allianz 74 % Insurance Life Joint venture General Insurance Company Ltd C) Allianz Bajaj 74 % Insurance Life Joint venture Life Insurance Company Ltd D) Maharashtra 24 % Automotive and Joint venture Scooters Ltd Investments E) Bajaj Auto 46.15 % Hire purchase and Associate Finance Ltd financing 2.3 A REVIEW ON THE ANNUAL SALES OF TWO AND THREE WHEELERS IN 2008-09 Bajaj Auto records a sale of 140,117 units of two and three wheelers in March 09. 2.3.1 MOTORCYCLES SALES A total of 74,031 motorcycles were sold during March 08, as against a sale of 69,924 units in March 2009 a growth rate of 5.9%. April 1, 2003: This growth has been achieved despite very tough market conditions triggered by war, petrol price bikes, VAT related confusions etc. Such growth was enable by the strong product line up of the company-entry level CT 100 BYK, the new Pulsar 150cc of take of 10,754 units, Initial customer H.R.Institute of Higher Education, Hassan 18
  • Baja Auto Ltd Sales Promotion feedback is encouraging and company plans to produce over 30000 units during April 09. 2.3.2 THREE WHEELERS Demand for 3 wheelers, has been strong and over 16000 3 wheelers have been sold in March, 09. Commercial production of GC 1000-new one ton goods carrier powered by high performance Kubota Diesel Engine has commenced a Waluj plant. Company expects to produce over 500 units of this model in April 09. 2.3.3 EXPORTS GROWTH Exports growth continues in March. Exports performance continues to be strong, with 7,119 two and three wheelers exported during the month, a growth of 53.8% over 4,628 units exported in Mar, 09. Export performance during the month would have comfortably crossed 11000 units, but for the Mumbai customers House Agents strike for a few days which bampered shipping of goods. As of 31st March over 4200 units awaiting shipping in Mumbai port. Fiscal Year 08-09 volumes total sales of 2 and 3 wheelers for 08-09 are 14,42,760 units recording a growth rate of 6.2% over last year. Motorcycles sales are 868,089 units against 656,018 units sold during 08-09 recording a healthy growth rate of 32.3%. Despite intense competition, in this all H.R.Institute of Higher Education, Hassan 19
  • Baja Auto Ltd Sales Promotion rd important segment, for the 3 consecutive year, company has recorded market share improvement, which for 08-09 stood at 23%. Exports have been another high point of the year 94, 133 units have been exported-highest ever by the company and a whopping 112.4% growth over corresponding numbers of 44,311 units exported during the previous fiscal. Fiscal year 08-09 outlook based on product strength in critical motorcycle segment which is expected to contribute over 80% of 2 wheeler sales, company is bullish for the forth coming year. Discover and CT 100 have redefined be respective sub-segments and Pulsar 180 with its best in class performance and fuel efficiency, is making in roads in the Executive segment. Given the current uncertainties explained earlier, 08-09 is projected to be a difficult year. Despite this general back drop, based on its products, positioning and exports, company expects to sell over 1.6 million units in 08-09, achieving a 10% plus growth rate. 2.3.4 Following table shows the sales in March 2009 with comparison to previous year march 2008. March 09 March 08 Growth Motorcycles 868.089 656.018 32.3% Total 2 Wheelers 1.24.043 1.197.922 4.3% 3 Wheelers 193.717 160.684 20.6% H.R.Institute of Higher Education, Hassan 20
  • Baja Auto Ltd Sales Promotion Total 2 & 3 1.442.760 1.358.606 6.2% Wheelers Exports out of 94.133 44.311 112.4% above total 2 & 3 Wheelers 2.4 BOOK PROFIT OF THE FIRM Reflective of the growing competitive pressure in the Two wheeler industry. Bajaj Auto reported a marginal increase in turnover and net profit for the year ended Mar 2009. Aided by 6% increase in sales volume, the total income from operations rose 15% to Rs. 4,895.3 crores. For the year ended Mar 09 motorcycle sales rose 32% to 8.68 lakh units while 3 wheeler sales 21% to 1.94 lakh units. However the other two wheeler segment such as scooter and step they saw a net decline in sales volume. As a result, the total two wheeler sales inched up by 4% deposit a robust 21% increase in motorcycle sales. 2.4.1 FINANCIALS The operating profit margin rose to 18.9% from 17.5%. The cost control measures undertaken by the company along with the increased off take of higher value products such as Pulsar, CT 100 and 3 Wheeler helped the company to achieve a higher OPM. The increase in turnover and profitability helped Bajaj to record a 3.3% increase in post tax earnings to 5,38,42 crores. The company has maintained the dividend at 140% for the year ended Mar, 03. H.R.Institute of Higher Education, Hassan 21
  • Baja Auto Ltd Sales Promotion The impact of the competitive forces is evident in the fourth quarter of the previous fiscal. The turnover for this period rose by just 10% while the OPM saw a net decline. Over the past few years Bajaj has been fairly successful in segmenting the motorcycle market. It took the lead be launching CT 100 at the lower price spectrum and, with Avenger and Pulsar, which were positioned in the premium price band. However Hero Honda and TVS Motor have launched a product that competes with Bajaj’s range in almost all price segments. As a result, the company might find its growth rates getting stalled. 2.4.2 FORWARD LOOK For the financial year 2008 BAL is targeting two wheeler sales of 1.6 million units, inline with the 12% industry growth rate. But is motorcycle growth rate is 30%, with volumes crossing one million units, including projected Pulsar volume of 240,000 units. Final 2009 3 wheeler volumes are seen at 216,000 units while total 2 & 3 wheeler export is projected at 126,000 units. In July, the 124cc exceed launched. Its first year export volume is pegged at 6000 units, understanding with Bajaj being for an eventual 50000 units mostly to Indian markets. 2.5 ORGANIZATIONAL STRUCTURE BOARD OF DIRECTORS RAHUL BAJAJ Chairman MADHUR BAJAJ H.R.Institute of Higher Education, Hassan 22
  • Baja Auto Ltd Sales Promotion Vice Chairman RAJIV BAJAJ Managing Director SANJIV BAJAJ Executive Director RAKESH SHARMA CEO (International Business) R C MAHESHWARI CEO (Commercial Vehicles) S SRIDHAR CEO (Two Wheelers) 2.5.1 BOARD OF DIRECTORS Board of directors Managing Director H.R.Institute of Higher Education, Hassan 23 Executive V.P President Purchase Marketing Sa Sales
  • Baja Auto Ltd Sales Promotion Operations R&D Production Quality HRD& Industrial Business Finance Engineer Assurance TQC Relations Planning Information Industrial Program Program Program Corporate Systems Business Scooty Motorcycle Moped Communication 2.5.2 SALES & SERVICE DEPARTMENTS Senior Vice President Vice President H.R.Institute of Higher Education, Hassan 24 Sales Head Territory Mgr NationalMgr Area Mgr TerritoryMgr National Mgr Area Mgr TerritoryMgr National Mgr Area Mgr National Mgr TerritoryMgr Area Mgr
  • Baja Auto Ltd Sales Promotion 2.5.3 FUNCTIONS OF SALES & SERVICE DEPARTMENTS  Improved Customer Satisfaction  Customer Relation Management  Build the Auto Bajaj Ltd  Improve Channel Management  Expand dealer network 2.5.4 HUMAN RESOURCES DEVELOPMENT (HRD) Head of BAL H.R.Institute of Higher Education, Hassan DGM HRD 25
  • Baja Auto Ltd Sales Promotion Senior Manager (HRD) 3 Senior Administrative Assistants H.R.Institute of Higher Education, Hassan 26
  • Baja Auto Ltd Sales Promotion FIRM’S PROFILE A BIRD VIEW OF ARPITA BAJAJ 2.6 FIRM’S PROFILE 2.6.1 A BIRD VIEW OF ARPITA BAJAJ 2.6.2 BIRTH Arpita Bajaj has taken its birth in the year may 1, 2000 by appointing as a authorized dealer of Bajaj Auto Ltd. For the sales, service spares of two wheelers. A new showroom was started in Hassan in the heart of the city of the BM Road. In the early stages of the firm there were only 20 workers who were working. Due to the increase of sales and profit of the firm, they wanted to increase the scale of the business. So the purchased asset (site) in 1983, Hassan at BM Road. In that place, they constructed an exciting showroom for the purpose of business. It consists of 3 divisions. H.R.Institute of Higher Education, Hassan 27
  • Baja Auto Ltd Sales Promotion 2.6.3 THEY ARE a. A department for sales. b. A department for service. c. A department for spares. a. The sales department contains a head count of 13 members. b. The service department contains a head count of 25 members. c. The spare part department also contains a head count of 04 members to work. It is having computer facility for billing and charging the amount. 2.6.4 NATURE OF THE FIRM Arpita Bajaj is a sole trading firm. The founder of Arpita Bajaj.Was Vishwanath Patil who developed the firm into a greater extent. 2.6.5 INFRASTRUCTURAL FACILITIES The firm is having a total area of 2000 sq.ft. It is having a fabulous and an attractive showroom of 950 sq. ft. The spare part section is having on area of 1000 sq.ft. It is having a well equipped workshop with an area of 1800 sq.ft. The remaining area is using for parking and test riding of vehicles. The firm is having a separate counter for sales and for Bajaj Auto Finance. Bajaj Auto Finance is providing a good facility for customer like loans, free service etc. The customers will have the facility of loan by Bajaj Auto Finance Ltd., in Pune at an attractive rate of interest. The customer has to clear the installment within 12, 18, 24 & 36 months. H.R.Institute of Higher Education, Hassan 28
  • Baja Auto Ltd Sales Promotion 2.6.6 TABLE SHOWING THE TOTAL SALES OF TWO WHEELERS ACHIEVED BY ARPITA BAJAJ, IN THE LAST 2 YEARS. YEAR TOTAL SALES OF 2 WHEELERS 2008-09 79 2009-10 120 The above table clearly shows that the sales of two wheelers are in cumulative increase except in the year 2008-10. So that Arpita Bajaj performing its function in a competitive way. 2.6.7 PROMOTIONAL STRATEGY OF THE FIRM Arpita Bajaj emerged as a fast moving seller of two wheelers of Bajaj Auto Ltd, it has undertaken various promotional tools to retain the existing customers and to forecast the prospective and failure customer. Following are the sales promotional tools adopted by the firm to increase its sales. 2.6.8 NEWS PAPER The firm has adopted the newspaper as an advertisement media for the promotion of its two wheelers. If give the Add in the all English newspapers like Times of India, Vijay Times, Indian Express, Deccan Herald etc. It also gives Add in local newspapers such as Vijaya Karnataka, janatha madhyama, etc. 2.6.9 TELEVISION The firm displays its Add in different channels of television. It is an effective media of advertisement which is adopted by the firm to induce the prospective customers. H.R.Institute of Higher Education, Hassan 29
  • Baja Auto Ltd Sales Promotion 2.6.10 MAGZINES The firm subscribes its Add in various souvenirs and magazines of reputed colleges, educational institutions and in other institutions. 2.6.11 WINDOW DISPLAY The firm is having an exciting showroom and a large place for the display of vehicles. The vehicles will to display through windows. So it attracts the attention of the customers when they enter into the showroom. 2.6.12 OTHERS The firm displays its products big banners, posters, boards across the major busy roads and also leaf lets, pomplets issued to the customers. The posters, banners will be displayed in the sports events, drama festivals, youth festivals, exhibitions, fares, and other famous festivals. H.R.Institute of Higher Education, Hassan 30
  • Baja Auto Ltd Sales Promotion 2.7 PRODUCT PROFILE Type of Company: Public Founded in: 1945 Headquarters: Pune, India Products: scooters, motorcycles and auto rickshaw. Bajaj Auto Ltd. is an important Indian automobile manufacturer. Bajaj Auto is the second largest two-wheeler manufacturer in India and one of the largest in the world. It is also the earliest one in India to venture into automobile manufacturing. The company produces and exports scooters, motorcycles and the auto rickshaw. Bajaj Auto is based in Pune, Maharashtra, with plants in Akurdi and Chakan, Waluj and Pantnagar in Uttarakhand. Bajaj Auto Limited was founded on November 29, 1945. At that time it was known as M/s Bachraj Trading Corporation Private Limited. The company initially sold imported two- and three-wheelers in India. In 1959, Bajaj Auto obtained license from the Government of India to manufacture two- and three-wheelers in the country. In 1960, Bajaj Auto became a public limited company. Over the last few years, Bajaj Auto has smartly and successfully transformed its image from a scooter manufacturer to a two wheeler manufacturer. At present, the product range of Bajaj Auto includes Scooters and Motorcycles. The last few years have seen company's real growth in numbers after it successfully introduced a number of new models in various segments of the fast growing bike market in India. In fact, Bajaj Auto smartly introduced new segments in the motorcycle market to take on its arch rival and market leader Hero Honda. H.R.Institute of Higher Education, Hassan 31
  • Baja Auto Ltd Sales Promotion 2.7.1 Bajaj Avenger • Avenger 200 DTS-i HIGH BANDWITH LOW BANDWITH Bajaj Avenger is a cruiser bike from the stable of Bajaj Auto. Bajaj Avenger is modeled along the lines of Kawasaki Eliminator as it draws the styling and other design cues from Bajaj Eliminator which had an air-cooled, single cylinder Kawasaki engine. 2.7.2 Bajaj Platina Platina 125 HIGH BANDWITH Baja Platina is a bike built by the Bajaj Auto. Baja Platina borrows extensively from the Bajaj Wind and Bajaj CT 100 models. H.R.Institute of Higher Education, Hassan 32
  • Baja Auto Ltd Sales Promotion 2.7.3 Bajaj CT 100 Bajaj CT 100 is a 100 CC entry-level bike from Bajaj Auto. Bajaj CT 100 clearly targets the value-for-money conscious young bike buyer and offers build quality and trim levels of higher-end bikes at a price closer to that of a traditional metal-bodied scooter. 2.7.4 Bajaj Discover DTSi o Discover 135 DTS-i Discover DTS-Si Bajaj Discover DTSi is a 125 cc bike. The Bajaj Discover has been the highest selling 125 cc bike in India since its inception and far ahead of other bikes in its segment. It is equipped with world’s first 125cc DTSi engine which gives best in class power of 8.47kW (11.51Ps). 2.7.5 Bajaj Wave Bajaj Wave scooterette borrows heavily from the old Bajaj Safire in terms of the overall design but it comes with several new refinements. Bajaj has incorporated its patented DTSi (Digital Twin Spark Ignition) technology and Exhaust TEC into Bajaj Wave. H.R.Institute of Higher Education, Hassan 33
  • Baja Auto Ltd Sales Promotion 2.7.6 Bajaj Pulsar DTSi Pulsar 180 DTS-i HIGH BANDWITH LOW BANDWITH Bajaj Pulsar has achieved the status of a cult bike in India. The sturdy and macho looking bike has been hugely popular in the Indian motorcycle market and is largely responsible for changing the 'scooter manufacturer' image of Bajaj Auto. 2.7.7 Bajaj Wind 125 Bajaj Wind* 125 is an executive segment, upright postured, fuel efficient bike from Bajaj Auto. Though manufactured in India, Bajaj Wind 125 is available only for select international markets. 2.7.8 Auto rickshaws •Bajaj Auto rickshaw Rear Engine 2 stroke petrol •Auto rickshaw WH175ZK •Auto rickshaw passenger and goods carrier •Star Auto rickshaw 4 stroke petrol •Gasoline Motor Tricycle •3 Wheeler Auto rickshaws with Powerful 200cc Engine WZMT2001. H.R.Institute of Higher Education, Hassan 34
  • Baja Auto Ltd Sales Promotion 2.8 ACHIEVEMENT 2.8.1 BAJAJ AUTO LTD ACHIEVE SOME AWARDS FROM SOME COMPANIES, THEY ARE 2005 •Bajaj Discover DTS-I was chosen as Bike of the Year and Indigenous Design of the Year by Overdrive Awards. 2004 •Bajaj Auto was chosen as Bike Maker of the Year by ICICI Bank Overdrive Awards. •DTS-I Technology was chosen as Auto Tech of the Year by ICICI Bank Overdrive Awards. •Bajaj Pulsar DTS-I became Bike of the Year by ICICI Bank Overdrive Awards. •Wind 125 chosen as the Two Wheeler of the Year by CNBC AUTOCAR Awards. •Wind 125 chosen as the Bike of the Year by Business Standard Motoring. 2003 •Bajaj Pulsar 180 DTS-I chosen as Wheels Viewers Choice Two Wheeler of the Year and Best Two Wheeler by BBC World Wheels Award. •Bajaj Pulsar 150 DTS-I chosen as Best Two Wheeler between Rs. 45,000 to Rs. 55,000 by BBC World Wheels Award. H.R.Institute of Higher Education, Hassan 35
  • Baja Auto Ltd Sales Promotion •Bajaj Boxer AT KTEC chosen as Best Two Wheeler under Rs. 30,000 by BBC World Wheels Award. •Bajaj Pulsar chosen as Motorcycle Total Customer Satisfaction Study by NFO Automotive. •Bajaj Pulsar chosen as Bike of the Year by ICICI Bank OVERDRIVE Awards. 2002 •Bajaj Pulsar chosen as Most Exciting Bike of the Year by OVERDRIVE Awards. •Bajaj Eliminator chosen as Bike of the Year by OVERDRIVE Awards. 2001 •Bajaj Eliminator chosen as Most Exciting Bike of the Year by OVERDRIVE Awards. 2.9 SWOT ANALYSIS H.R.Institute of Higher Education, Hassan 36
  • Baja Auto Ltd Sales Promotion 2.9.1 STRENGTH H.R.Institute of Higher Education, Hassan 37
  • Baja Auto Ltd Sales Promotion 1. Minimal response time due to good teamwork. 2. Government Bank giving more attention to installation loan improvement 3. Focus on customer delight besides customer satisfaction. 4. Ever time more demand. 5. Latest Hi-tech core concepts of production & quality. 2.9.2 WEAKNESS 1. The company has a strong portfolio of products spread across almost the entire spectrum of the two-wheeler market. 2. Inconsistency in delivering quality products and service 3. The degree of success enjoyed by model introduction would be critical performance determinate. 4. More than 50% of the targeted customer are youngsters 2.9.3 OPPORTUNITIES H.R.Institute of Higher Education, Hassan 38
  • Baja Auto Ltd Sales Promotion A choice for the trader is not an easy one these days. It is because most scrip’s have zoomed up sizeably and therefore are of doubtful nature for recommendation for further gain. There are others who are resisting a fall. They are neither good for short sellings nor for long trades. 1. Opportunity to adopt modern techniques 2. Government will provide local market facility to producer 3. Government and bank will give financial help to improve technology 2.9.4 THREATS The initiation of liberalization in India posed great challenges for Bajaj Auto. Liberalisation brought the threat of cheap imports and FDI from top companies like Honda. Rahul Bajaj became famous as the head of the Bombay Club, which opposed liberalization. The scooter sails plummeted as people were more interested in motorcycles and the rival Hero Honda was a pioneer in it. The recession and stock market collapse of 2001 hit the company hard and it was predicted that the days of Bajaj Auto were numbered. However, Bajaj Auto re- invented itself, established a world-class factory in Chakan, invested in R&D and came up with Bajaj Pulsar Motorcycle. 1. Price fluctuation 2. Natural calamities 2.9.5 Bajaj Auto’s smart move  Faced with tough competition.  In the late 1990s, Bajaj Auto, the leading scooter manufacturer, faced a crisis. There was a shift from scooters to motorcycles. Urban youth as well as rural markets were patronizing the motorcycles, effectively ignoring scooters. H.R.Institute of Higher Education, Hassan 39
  • Baja Auto Ltd Sales Promotion 3. REVIEW OF LITERATURE 3.1 SALES PROMOTION ACTIVITIES Sales promotion is an important component of a small business’s overall marketing strategy, along with advertising, public relations, and personal selling. The American Marketing Association (AMA) defines sales promotion as “media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality.” But this definition does not capture all the elements of modern sales promotion. One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing, selling effectiveness, or the effort of the sales force. It can be used to inform, persuade, and remind target customers about the business and its marketing mix. Some common types of sales promotion include samples, coupons, sweepstakes, contests, in-store displays, trade shows, price- off deals, premiums, and rebates. Businesses can target sales promotions at three different audiences: consumers, resellers, and the company’s own sales force. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and unplanned purchases. Most marketers believe that a given product or service has an established perceived price or value, and they use sales promotion to change this price-value relationship by increasing the value and/or lowering the price. Compared to the other components of the marketing mix (advertising, publicity, and personal selling), sales promotion usually operates on a shorter time line, uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to profitability. H.R.Institute of Higher Education, Hassan 40
  • Baja Auto Ltd Sales Promotion In determining the relative importance to place on sales promotion in the overall marketing mix, a small business should consider its marketing budget, the stage of the product in its life cycle, the nature of competition in the market, the target of the promotion, and the nature of the product. For example, sales promotion and direct mail are particularly attractive alternatives when the marketing budget is limited, as it is for many small businesses. In addition, sales promotion can be an effective tool in a highly competitive market, when the objective is to convince retailers to carry a product or influence consumers to select it over those of competitors. Similarly, sales promotion is often used in the growth and maturity stages of the product life cycle to stimulate consumers and resellers to choose that product over the competition—rather than in the introduction stage, when mass advertising to build awareness might be more important. Finally, sales promotion tends to work best when it is applied to impulse items whose features can be judged at the point of purchase, rather than more complex, expensive items that might require hands-on demonstration. 3.1.1 Promotion It involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. (The other three elements are product marketing, Pricing, Place.) Promotion is generally sub-divided into two parts: • Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad • Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows H.R.Institute of Higher Education, Hassan 41
  • Baja Auto Ltd Sales Promotion The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. The term “promotion” is usually an “in” expression used internally by the marketing company, but not normally to the public or the market – phrases like “special offer” are more common. Getting the marketing mix right for your product or service means you are covering all of the important bases in your marketing campaign. Here is a definition of marketing mix and a description of its main components. To order to properly market a product or service. Also known as The 4 Ps of Marketing, the marketing mix is a he term marketing mix refers to the primary elements that must be attended to in very useful, if a bit general, guideline for understanding the fundamentals of what makes a good marketing campaign. Here is a brief description of each component of the 4 Ps of the marketing mix. 3.1.2 PRODUCT: The marketing mix concept has its roots in the 1950s U.S. corporate marketing world, and the practice of marketing has obviously evolved tremendously since this term was invented. One of the changes is that there are a lot more services available nowadays, such as those available online. Also, the distinction between product and service has become more blurry (e.g., is a Web-based software application a product or a service?). Either way, product here refers to products or services. The product or service you offer needs to be able to meet a specific, existing market demand. Or, you need to be able to create a market niche through building a strong brand. H.R.Institute of Higher Education, Hassan 42
  • Baja Auto Ltd Sales Promotion 3.1.3 PRICE: The price you set for your product or service plays a large role in its marketability. Pricing for products or services that are more commonly available in the market is more elastic, meaning that unit sales will go up or down more responsively in response to price changes. By contrast, those products that have a generally more limited availability in the market (but with strong demand) are more inelastic, meaning that price changes will not affect unit sales very much. The price elasticity of your product or service can be determined through various market testing techniques. 3.1.4 PLACE: This term really refers to any way that the customer can obtain a product or receive a service. Provision of a product or service can occur via any number of distribution channels, such as in a retail store, through the mail, via downloadable files, on a cruise ship, in a hair salon, etc. The ease and options through which you can make your product or service available to your customers will have an effect on your sales volume. 3.1.5 PROMOTION: Promotion is concerned with any vehicle you employ for getting people to know more about your product or service. Advertising, public relations, point-of-sale displays, and word-of-mouth promotion are all traditional ways for promoting a product. Promotion can be seen as a way of closing the information gap between would-be sellers and would-be buyers. Your choice of a promotional strategy will be dependent upon your budget, the type of product or service you are selling, and availability of said promotional vehicle. Marketing has come a long way from the 4 Ps of yesteryear, and yet understanding this marketing mix is for your product or service remains very relevant today. The marketing mix serves as an excellent touchstone for continually checking that you are covering all of the bases in your marketing campaign. H.R.Institute of Higher Education, Hassan 43
  • Baja Auto Ltd Sales Promotion 3.2 Role of Promotion “To communicate with individuals, groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more audiences to accept an organization's products.” 3.4 Promotion and Society Marketers need to communicate, therefore need a medium to facilitate communication. • TV • Newspapers • Radio • Magazines Marketers need to communicate, therefore provide funds for Event Sponsorship. 3.5 Nine elements to the communication process Sender Chrysler and Receiver Target Market (35-50yr aspire BMW/Lexus) are the major parties in the communication process. Message New Car, Cirrus, comfort of a Lexus and handling of a BMW for less money and the media TV, direct mail, Brooks Brothers etc are the major communication tools. 3.6 More major functions H.R.Institute of Higher Education, Hassan 44
  • Baja Auto Ltd Sales Promotion • Encoding--putting thought into symbolic form. Advertising Agencies creating radio commercials, TV commercials, prepare direct mail pieces, sales pitch etc • Decoding--consumer interprets message. Understanding the target market's perception process is critical. • Response--Reactions of the receiver buy or not to buy, take next step down AIETA, go to the showroom etc. 3.7 Scope and importance of sales promotion  323 billion coupons were distributed 1993 nationally annually (3,200/household), only 2.3% are redeemed.  9000 trade shows containing 10 exhibits or more/year. New York auto show attracts more than a million people per year.  $15-20 billion/year spent on point of purchase material in stores. Why?  Companies are looking to get a competitive edge.  Quick returns are possible for short term profits.  More consumers are looking for promotions before purchase.  Channel members putting pressure on manufacturing for promotions.  Advances in tech. make SP easier (i.e. coupon redemption). 3.8 Sales Promotion Opportunities and Limitations  Increase in sales by providing extra incentive to purchase. May focus on resellers (push), consumers (pull) or both.  Objectives must be consistent with promotional objectives and overall company objectives.  Balance between short term sales increase and long term need for desired reputation and brand image.  Attract customer traffic and maintain brand/company loyalty.  Reminder functions-calendars, T Shirts, match books etc.  Impulse purchases increased by displays  Contests generate excitement esp. with high payoffs. H.R.Institute of Higher Education, Hassan 45
  • Baja Auto Ltd Sales Promotion 3.9 Limitations  Consumers may just wait for the incentives  May diminish image of the firm, represent decline in the product quality.  Reduces profit margins, customers may stock up during the promotion.  Shift focus away from the product itself to secondary factors, therefore no product differential advantage. 3.10 Sales Promotion The word promotion, originates from the Latin word “promovere”, the meaning is “to move forward” or to advance an idea. The aim of production is sales. Sales and promotion are two different words and sales promotion is the combination of these two words. Sales promotion methods aim to capture the market and increase the sales volume. Sales promotion consists of a diverse of innovative tools, mostly short term, designed to stimulate quicker or greater purchase or particular products/services by the consumers are the trade. Today sales promotion has been accounted for 60% to 70% of the combined budget. Sales promotion expenditure has been increasing 12 annually compared with advertising in of 7.6%. Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trail and while a free management advertising service cements a long-term relationship with a retailer. Sales promotion often attracts brand switchers, because H.R.Institute of Higher Education, Hassan 46
  • Baja Auto Ltd Sales Promotion users of other brands and categories do not always notice or act on a promotion. Brand switchers are primarily looking for low price, good values or premiums. Sales promotions are unlikely to turn them into loyal brand users. In markets of high brand dissimilarity, sellers use incentive type promotions to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion yields faster responses in sales than advertising. 3.11 Sales promotion has dual objectives • To increase buying response by ultimate consumers • To increase selling efforts and intensity by dealers as well as by sales a personnel • To capture the major share of the market • To meet the competition of other firms • To inform the public about the new product and its specialties, attraction and advantages • To create favorable attitude towards the product • To create additional talking points to sales persons • To establish and maintain communication with large market segments • Sales promotion includes those sales activities that supplement both personal selling and advertising to co-ordinate them and help them make effective such as displays shows and expositions, demonstrations and non-recurrent selling efforts not in ordinary routine. 3.12 Marketers take sales promotion activities for the following reasons • For introducing new product • For overcoming unique competitive situation • For unloading accumulated inventory H.R.Institute of Higher Education, Hassan 47
  • Baja Auto Ltd Sales Promotion • For getting new accounts • For persuading dealer to buy more/increase size of orders • For retrieving cost accounts 3.13 Major consumer promotional tools 3.13.1 COUPONS: coupons are supplied along with a product. It is a certificate that reduces prices. Coupons can be mailed, enclosed in the packets or printed in the advertisements. 3.13.2 SAMPLES: Free samples are given to consumers to increase the product. These are given to the people in the hope that they will buy the goods when they are satisfied with the sample. 3.13.3 MONEY REFUND OFFERS: If he purchaser is not satisfied with the product, a part or all of the entire purchaser’s money will be refused. 3.13.4 PREMIUM OFFER: It is a temporary price reduction, which increases the instinct of the buyers. Products are offered free or at a reduced cost as an inducement for purchasing. 3.13.5 CONTESTS: The customers are asked to state in a few words why they prefer a particular product. To enter, the consumer must purchase a product and submit the evidence with the entry forms to contests, for the winner attractive prizes are given in the form of cash or valuable articles. 3.13.6 DEMONSTRATION: It is the instructions to educate the consumers in the manner of using products. It is arranges at the retail, store or in trade fairs. H.R.Institute of Higher Education, Hassan 48
  • Baja Auto Ltd Sales Promotion 3.13.7 PRICE OFF OFFERS: It stimulates sales during slump reasons. It gives a temporary discount to the customers. 3.14 Dealer’s promotion tools 3.14.1 PRICE OFF/OFF LIST: a price off is a straight discount of the list price on each case purchased during a stated time period. 3.14.2 ALLOWANCE: An allowance is an amount offered in return for the retailers agreeing to feature the manufacturer’s product in some way. 3.14.3 FREE GOODS: Free goods are offers of extra cases of merchandise to middlemen who buy a certain quality or who feature a certain flavour or size. 3.14.4 DEALER’S CONTEST: This is an indirect way of boosting the sales. This type of contest is conducted at the level of retailers and wholesalers. 3.14.5 PRICE DEALS: Apart from the regular discount, special discount are also allowed to dealers for a special quantity of purchased. 3.14.6 CO-OPERATIVE ADVERTISING: Dealers spend money in advertising manufacturer’s product with the consent of manufacturers. 3.15 Sales force promotion tools Trade shows and convention: Industry associates organize annual trade shows and conventions. H.R.Institute of Higher Education, Hassan 49
  • Baja Auto Ltd Sales Promotion 3.15.1 BONUS TO SALES FORCE: The manufacturers set a target of sales for a year. If the sales force sells the product above the targeted sales, bonus is offered to them. 3.15.2 SALES CONTESTS: A sales contest is a contest involving the sales force or dealers, aimed at inducing them to increase their sales results over a stated period, with prizes going to those who succeed. 3.15.3 SPECIALTY ADVERTISING: It consists of useful, low cost items given by sales people to prospectus and customers bearing the giver’s name and address and sometimes an advertising message. 3.16 Brand Brands are names generally assigned to a product or service or a group of complementary products while a corporate image covers every aspect of the company. Brands are drivers of competitive edge. “A successful brand is a name, symbol, design, or some combination, which identifies the ‘product’ of a particular organization as having a sustainable differential advantage” 3.17 Branding It is the practice of giving a specified name to a product or group of products of one seller branding is the process of finding and fixing the means of identification naming a product like naming a baby, is known as branding. Branding gives seller the opportunities to attract profitable set of customers. A brand loyalty gives seller some protection from the competitors and greater control in market program. Some importance of branding is as follows:  Branding helps the seller segment market each formulated differently and aimed at specific benefits seeking segment.  Good brand helps in building corporate image  Memory recalls is facilitated H.R.Institute of Higher Education, Hassan 50
  • Baja Auto Ltd Sales Promotion  Advertising can be directed more effectively and linked with other communication programs  Branding leads to a more ready acceptance of a product by wholesalers and retailers  The importance of price differentials may be diminished  Brand loyalty may give a manufacture greater control over marketing strategy and channels of distribution  Branding makes market segmentation easier  Brand mark is that part of the brand, which appears in the form of a symbol, design or distinctive, coloring or lettering it is designed to easy identification of a product.  Brand should suggest something about the product, purpose, quality and benefits etc.  It should be easy to advertise and identify  Should be of a permanent nature  It should be capable of being registered and protected legally  It should economical to reproduce  It should create a good image  It must have a pleasing sound to the ear when pronounced. 3.18 Forms of promotion  Personnel selling  Advertising  Sales Promotion  Publicity  Propaganda and Public Relation 3.19 Selling H.R.Institute of Higher Education, Hassan 51
  • Baja Auto Ltd Sales Promotion “Selling is the personnel or interpersonal process of assisting and persuading a prospective customer to buy a commodity or service and to act favorably upon an idea that has commercial significance to the seller’. 3.20 Labeling Label is a part of the product which carries verbal information about the product or the seller. It may be part of package, or it may be a tag attached directly to the product. The act of attaching or tagging the label is known as labeling. 3.21 Packaging Packaging of a consumer product is an important part of the marketing plan. Packing means wrapping of goods before they are transported or stored o4 delivered to a customer. Packaging an activity, which is concerned with protection economy convenience and promotional consideration? The wrapper of the container is celled package. 3.22 Advertising Advertising as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertisement is that activity by which visual oral messages are addressed to the general public the aim is to persuade people to buy more. It creates desire for new products the success of advertising greatly depends upon effective advertising programme. Its purpose is to inform or influence then in order to increase of the sales. According to Philip Kotler, “advertising is non-personal form of communication conducted through paid media under clear sponsorship.” 3.23 Advertising is mainly for the purpose of H.R.Institute of Higher Education, Hassan 52
  • Baja Auto Ltd Sales Promotion • Promotion of new product • Support of personnel selling • To create brand patronage • For dealers support • Advertising appears effective in increasing the volume purchased by local buyers but less effective in winning new buyers. 3.24 Kinds of Advertising 3.24.1 Product Advertising It aims at selling a particular product. A particular product with its brand is promoted through advertisement. 3.24.2 Institutional Advertising It is displayed to create goodwill for the firm rather than to sell its product it gives importance to the firm and wants to create a good impression about a particular manufacturer. 3.24.3 Commercial Advertising May be trade advertising relation to trade industrial advertising, relation to industrial professional, relating profession form, relating to farm products 3.24.4 Non-commercial Advertising Non-profit organizations adopt this type of advertisement. 3.24.5 Selection of Advertising Media H.R.Institute of Higher Education, Hassan 53
  • Baja Auto Ltd Sales Promotion It is a means through which advertises communicate their idea to likely customer to influence them with a view to know and decide about the product or service advertised. It needs a prudent calculation; it eats away the funds, the absence of correct decision will waste the money without result. It must satisfy the following. • It has to reach maximum prospects • It must gain the attention of readers • It must have wide coverage at least cost. 3.24.6 Advertising Media Medium is a means through which the advertising message is conveyed to the consumers. The proper selection of the medium, by which the message is to be conveyed, must achieve the pre-determined goals. A medium is the carrier of advertising message. It is the means to deliver the advertising message. Each advertiser has good many media for his selection. 3.25 Kinds of Media 3.25.1 Indoor advertising media When advertising is made through newspapers, magazine, radio, T.V program or cinema program in video etc., so that people can get the message at home, it is known as indoor advertisement. This media represents the use of those vehicles by the advertisers that carry the message right into the houses or indoors of the audiences. Here the massage reaches the audience indoors when it is easy and interceptive mood because house is the resting place for inmates for relax. 3.25.2 Outdoor advertising media H.R.Institute of Higher Education, Hassan 54
  • Baja Auto Ltd Sales Promotion Outdoor advertising passes the message to those people who are moving audience. Generally, almost all people go out on some purpose or other-office walk, sightseeing, journey, park visit etc. This advertising message is delivered to the audience like print and broadcast media. Rather the message is placed in strategic places exposed to moving audience. This outdoor advertising has the best effects of advertising. 3.25.3 Direct mail advertising The object of direct advertising is to create a direct contact with the customers. The advertiser can keep a close touch with the customers or the public who are supposed to have interest in his products. It covers all forms of printed advertisements delivered directly to the prospective customers instead of indirect distribution like newspapers and magazines. The advertiser contacts customer and keeps a close touch with them through mail advertising. 3.25.4 Display advertising Media The object of this media is to increase the sales. This is hinged on concepts of display. Display is the systematic arrangements of sample of saleable products to catch the imagination as well as to attract the attention and notice of the lookers. It demonstrates directly about the product by presenting them than by telling and selling the points directly. 3.26 The following factors govern the choice of advertising medias  Nature of the product  Potential market  Type of distribution strategy  Advertising objectives  Type of selling messages  The budget available  Competitive advertising  Media availability  Change of Media H.R.Institute of Higher Education, Hassan 55
  • Baja Auto Ltd Sales Promotion 3.27 Major Methods of Advertising 3.27.1 Brochures or flyers Many desk-top publishing and word-processing software packages can produce highly attractive tri-fold (an 8.5 inch by 11-inch sheet folded in thirds) brochures. Brochures can contain a great deal of information if designed well, and are becoming a common method of advertising. (See Writing Brochures.) 3.27.2 Direct mail Mail sent directly from you to your customers can be highly customized to suit their nature and needs. You may want to build a mailing list of your current and desired customers. Collect addresses from customers by noticing addresses on their checks, asking them to fill out information cards, etc. Keep the list online and up-to-date. Mailing lists can quickly become out-of-date. 3.27.3 E-mail messages These can be wonderful means to getting the word out about your business. Design your e-mail software to include a "signature line" at the end of each of your e-mail messages. Many e-mail software packages will automatically attach this signature line to your e-mail, if you prefer. (See Netiquette - Techniques and styles of writing e-mail messages and E-mail vs. voice mail.) 3.27.4 Magazines Magazines ads can get quite expensive. Find out if there's a magazine that focuses on your particular industry. If there is one, then the magazine can be very useful because it already focuses on your market and potential customers. Consider placing an ad or writing a short article for the magazine. Contact a reporter to introduce yourself. Reporters are often on the look out for new stories and sources from which to collect quotes. (See Classifieds of Newspapers and Magazines.) 3.27.5 Newsletters H.R.Institute of Higher Education, Hassan 56
  • Baja Auto Ltd Sales Promotion This can be powerful means to conveying the nature of your organization and its services. Consider using a consultant for the initial design and layout. Today's desktop publishing tools can generate very interesting newsletters quite inexpensively. (See Newsletters.) 3.27.6 Newspapers (major) Almost everyone reads the local, major newspaper(s). You can get your business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to get a story written about your business. Advertising can get quite expensive. Newspaper are often quite useful in giving advice about what and how to advertise. Know when to advertise -- this depends on the buying habits of your customers. (See Classifieds of Newspapers and Magazines.) 3.27.7 Newspapers (neighborhood) Ironically, these are often forgotten in lieu of major newspapers, yet the neighborhood newspapers are often closest to the interests of the organization's stakeholders. (See Classifieds of Newspapers and Magazines.) 3.27.8 Online discussion groups and chat groups As with e-mail, you can gain frequent exposure to yourself and your business by participating in online discussion groups and chat groups. Note, however, that many groups have strong groundrules against blatant advertising. When you join a group, always check with the moderator to understand what is appropriate. (See the groups listed on the right-hand side, Netiquette - Techniques and styles of writing e-mail messages and E-mail vs. voice mail.) 3.27.9 Posters and bulletin boards H.R.Institute of Higher Education, Hassan 57
  • Baja Auto Ltd Sales Promotion Posters can be very powerful when placed where your customers will actually notice them. But think of how often you've actually noticed posters and bulletin boards yourself. Your best bet is to place the posters on bulletin boards and other places which your customers frequent, and always refresh your posters with new and colorful posters that will appear new to passers by. Note that some businesses and municipalities have regulations about the number of size of posters that can be placed in their areas. (See Signs and Displays.) 3.27.10 Radio announcements A major advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for example, when in their cars. Ads are usually sold on a package basis that considers the number of ads, the length of ads and when they are put on the air. . A major consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio. (See Advertising on Radio and T.V.) 3.27.11 Telemarketing The use of telemarketing is on the rise. (See Telemarketing.) 3.27.12 Television ads Many people don't even consider television ads because of the impression that the ads are very expensive. They are more expensive than most of major forms of advertising. However, with the increasing number of television networks and stations, businesses might find good deals for placing commercials or other forms of advertisements. Television ads usually are priced with similar considerations to radio ads, that is, the number of ads, the length of ads and when they are put on the air. (See Advertising on Radio and T.V.) 3.27.13 Web pages You probably would not have seen this means of advertising on a list of advertising methods if you had read a list even two years ago. Now, advertising and promotions on the World Wide Web are almost commonplace. Businesses are developing Web H.R.Institute of Higher Education, Hassan 58
  • Baja Auto Ltd Sales Promotion pages sometimes just to appear up-to-date. Using the Web for advertising requires certain equipment and expertise, including getting a computer, getting an Internet service provider, buying (usually renting) a Website name, designing and installing the Website graphics and other functions as needed (for example, an online store for e-commerce), promoting the Website (via various search engines, directories, etc.) and maintaining the Website. (See Building, Managing and Promoting Your Website and Online Advertising and Promotions.) 3.27.14 Yellow Pages The Yellow Pages can be very effective advertising if your ads are well-placed in the directory's categories of services, and the name of your business is descriptive of your services and/or your ad stands out (for example, is bolded, in a large box on the page, etc.). The phone company will offer free advice about placing your ad in the Yellow Pages. They usually have special packages where you get a business phone line along with a certain number of ads. 3.28 Promotional Activities through the Media (Reporters, Newspapers, etc.) 3.28.1 Articles that you write Is there something in your industry or market about you have a strong impression? Consider writing an article for the local newspaper or a magazine. In your article, use the opportunity to describe what you're doing to address the issue through use of your business. (See Basic Writing Skills.) 3.28.2 Editorials and letters to the editor Often, program providers are experts at their service and understanding a particular need in the community; newspapers often take strong interest in information about these needs, so staff should regularly offer articles (of about 200 to 900 words) for publication. (See Managing Media Relations and Basic Writing Skills.) H.R.Institute of Higher Education, Hassan 59
  • Baja Auto Ltd Sales Promotion 3.28.3 Press kits This kit is handy when working with the media or training employees about working with the media. The kit usually includes information about your business, pictures, information about your products, commentary from happy customers, etc. (See Managing Media Relations.) 3.28.4 Press releases or news alerts They alert the press to a major event or accomplishment and requesting, e.g., it get included in the newspaper; they explain who, what, where, why and when; some include pictures, quotes, etc. to make it easier for the reporter to develop an announcement or story. (See Managing Media Relations.) 3.29 Other Promotional Activities and Events 3.29.1 Annual reports Disseminate these to key stakeholders; they're ripe with information if they include an overview of your year's activities, accomplishments, challenges and financial status. (See Annual Reports.) 3.29.2 Collaboration or strategic restructuring If you're organization is undertaking these activities, celebrate it publicly. (See Organizational Alliances.) 3.29.3 Networking Spread the word to peers, professional organizations and those with whom you interact outside the organizations, e.g., educators, consultants, suppliers, clients, etc. (See Networking.) H.R.Institute of Higher Education, Hassan 60
  • Baja Auto Ltd Sales Promotion 3.29.4 Novelties It seems more common to find ads placed on pens and pencils, coffee cups, T-shirts, etc. These can be powerful means of advertising if indeed current and potential customers see the novelties. This condition often implies additional costs to mail novelties, print T-shirts, etc. 3.29.5 Presentations You're probably an expert at something. Find ways to give even short presentations, for example, at local seminars, Chamber of Commerce meetings, trade shows, conventions, seminars, etc. It's amazing that one can send out 500 brochures and be lucky to get 5 people who respond. Yet, you can give a presentation to 30 People and 15 of them will be very interested in staying in touch with you. (See Presenting.) . 4. METHODLOLOGY 4.1 TYPE OF RESEARCH Descriptive method has been used in this research for the collection of data. As research is related to the study of sales promotion, which can be more effective when its studied through direct questions, experimental research will not be much effective. Also, considering the constraint, descriptive research is the most suitable design for this research. 4.1.1 Qualitative Research Qualitative research allows you to explore perceptions, attitudes and motivations and to understand how they are formed. It provides depth of information which can be used in its own right or to determine what attributes will subsequently be measured in quantitative studies. Verbatim quotes are used in reports to illustrate points and this brings the subject to life for the reader. However, it relies heavily on H.R.Institute of Higher Education, Hassan 61
  • Baja Auto Ltd Sales Promotion the skills of the moderator, is inevitably subjective and samples are small. Techniques include group discussions/workshop sessions, paired interviews, individual in-depth interviews and mystery shopping (where the researcher plays the role of a potential student, etc in order to replicate the overall experience). 4.1.2 Quantitative Research Quantitative research is descriptive and provides hard data on the numbers of people exhibiting certain behaviors’, attitudes, etc. It provides information in breadth and allows you to sample large numbers of the population. 4.1.3 Descriptive research Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time.  Statement of the problem.  Identification of information needed to solve the problem.  Selection or development of instruments for gathering the information.  Identification of target population and determination of sampling procedure.  Design of procedure for information collection.  Collection of information.  Analysis of information.  Generalizations and/or predictions. H.R.Institute of Higher Education, Hassan 62
  • Baja Auto Ltd Sales Promotion 4.2 SOURCE OF DATA Data which is collected for the first time is called primary data. In the study primary data includes the data which is collected from the customer directly with interaction. The study includes data got with personal interaction. 4.2.1 Primary and Secondary Data The appraiser or market analyst must know what they are and what affects them. All data used in appraisals and market studies should be current, relevant, reliable, accurate, and conceptually correct. This article presents a discussion of each of these terms and their significance in the context of the data and in the analysis. The article then discusses the nature of potential errors that can affect primary and secondary data. Several categories of errors can exist. The analyst needs to be able to recognize the error, understand its significance and evaluate the applicability of that data in the analysis. Secondary data--Information from secondary sources, i.e., not directly compiled by the analyst; may include published or unpublished work based on research that relies on primary sources of any material other than primary sources used to prepare a written work. Secondary data has been gathered by others for their own purposes, but the data could be useful in the analysis of a wide range of real property. In general, secondary data exists in published sources. Primary and secondary data are used in appraisals, highest and best use studies, market analysis sections of appraisals, and full-scale market studies. A conceptual link between these two types of data and their use appears in the "Levels of Study" discussion presented in the Appraisal Institute's Course 520, "Highest and Best Use and Market Analysis" and in Chapter 5 of Market Analysis for Valuation Appraisals, which is published by the Appraisal Institute. A detailed discussion of this relationship appears later in this paper. 4.3 Methods for Obtaining Primary Data The analyst can obtain primary data through the process of direct observation or by explicit questioning of people. H.R.Institute of Higher Education, Hassan 63
  • Baja Auto Ltd Sales Promotion 4.3.1 Observation Observation as a data gathering technique focuses attention on an observable fact or inanimate entity such as a building or on an observable action or behavior by an animate entity such as a homeowner or shopper. Observation of an inanimate object is the easier of the two activities, but it is not free from error or misinterpretation. 4.3.2 Sampling Sampling is a process of learning about the population on the basis of which sample is drawn. A sample is a subset of a population unit. 4.3.3 Sample Design Sampling is a practice a researcher uses to draw data on people, places, or things to study. Sampling allows statisticians to draw conclusions about a whole by examining a part. It enables us to estimates characteristics of a population by openly observing a portion of the entire population. The whole that the researcher wants to know something about is the population is called a sample. 4.3.4 Sampling Tequnique The sampling technique used in the study includes both simple random sampling as well as judgment sampling. Respondent Size: 100 Tool for data collection: Structured questionnaire Geographical area: Hassan 4.5 Data collection instrument The primary data collection instrument for the survey is self administrated and structured questionnaire which consists of preference and scaling questions. This method of data collection is quite popular, particularly in case of big enquires. The questionnaire consists of close-ended and open ended questionnaire. 4.6 The modes of data collection H.R.Institute of Higher Education, Hassan 64
  • Baja Auto Ltd Sales Promotion • Interviewing face-to-face • Interviewing by telephone • Remote self-completion e.g. postal, internet. • Face-to-face and telephone interviewing are often computer-assisted (CASIC). • The amount • The complexity • The quality of the data they can collect • Interviewing is the most powerful mode in all these respects. • But interviewing, particularly in the field, is also by far the most expensive. • Choosing modes of data collection is a fundamental survey design decision. • When survey aims are being defined in detail, strengths and limitations of modes must be kept in mind. 5. ANALYSIS OF DATA AND INTERPRETATION 5.1 SALES PROMOTION ACTIVITIES ADOPTED BY ARPITA BAJAJ A consumer survey is conducted on the “Marketing and consumer attitude towards the sales promotion activities”. Various key aspects are taken while conducting the survey. These key aspects reveled the attitudes of different type of customers towards sales promotion activities. 5.1.1 ADVERTISING Advertising is a paid from of non personal presentation of goods or services by an Identified sponsor. It can done using any form of media like television, radio, print H.R.Institute of Higher Education, Hassan 65
  • Baja Auto Ltd Sales Promotion media, etc. a firm has the flexibility of choosing the target market while advertising. It advertises its product/service in the local newspaper to reach a small geographical area. If it is looking for national reach, the firm can advertise its product/service on the television through a national channel like doordarshan or any other television channel depending on the target audience. Arpita Bajaj promoting their sales through local channel advertising. Mainly they targeting to regular income people like Govt employees and also they suggesting them to go bank loan and also many of employees are going to bank loan this is one of the tool helping them to increase there sales. 5.1.2 FESTIVAL OFFERS Arpita Bajaj launching special schemes in occasion to the customer likes Deepawali, Dashara and New Year. In this festival offer are if they purchase bike they are giving offer two years service free and sometimes they are offering free Gold coin with purchase of any bike. 5.1.3 INSTALLMENTS FACILITIES Arpita Bajaj providing installment facilities to whom having capability of payment of installments. They have three years and five years installment facility. How installment increases interest rate also increases. Many of the middle class H.R.Institute of Higher Education, Hassan 66
  • Baja Auto Ltd Sales Promotion people are going to installment base purchase and organization also getting profit by this promotion tool. 5.1.4 FREE BIKE INSURANCE This promotional tool helps to the customer while purchasing the bike First time insurance is providing by company itself. And customers are not pay any extra amount for that company providing it free. Company tie up with ICICI insurance company. 5.2 CONTRIBUTION TOWORDS THE SOCIAL SERVICE Arpita Bajaj contributing towards the development of society. They contributing yearly AMOGH city cable award it helps to the organization to make awareness of the organization in city. 5.3 SALES INCREASED AS PER SALE PROMOTION ACTIVITIES ADDOPTED • ADVERTISING 33 • FESTIVAL OFFERS 17 • INSTALLMENTS FACILITIES 39 • FREE BIKE INSURANCE 11 H.R.Institute of Higher Education, Hassan 67
  • Baja Auto Ltd Sales Promotion 5.4 Questionnaire to the sales promotion at the Arpita Bajaj 1. Are you aware of Arpita Bajaj? Table 5.4.1 Response No of customer Yes 65 No 45 Chart 5.4.1 H.R.Institute of Higher Education, Hassan 68
  • Baja Auto Ltd Sales Promotion No of customer No of customer , No, 45, 41% Yes No of No customer , Yes, 65, 59% Inference: From the above pie chart we can ascertain that majority of customers i.e., around 65% of customers frequently visits to the store and 45% of the customer visits the Arpita automobiles rarely. 2. How do you come to know about Arpita Bajaj? Table 5.4.2 Response No of customer Cable advertisement 18 Friends 25 Magazine 34 News paper 23 Chart 5.4.2 H.R.Institute of Higher Education, Hassan 69
  • Baja Auto Ltd Sales Promotion No of customer Magazine, 34 35 30 Friends, 25 25 Cable News paper, 23 20 advertisement , 18 15 10 5 0 Cable Magazine advertisement Inference: From the above table chart we can analyze that the majority of the customer i.e. 34out of 100 customer visits Arpita bajaj once in three week , followed by 26 customer once in a month. Thus we can say that majority of customer visit arpita bajaj once in three week, may be during weekends. We can conclude that the customer do not visit Arpita automobiles for purchase the bike or servicing bike, which they do in some other automobiles or in a nearby Hero Honda motors. 3. Why do you at Bajaj bikes? Table 5.4.3 Reason No. of customers Style 42 Product variety 26 Quality 08 Mileage 24 Chart 5.4.3 H.R.Institute of Higher Education, Hassan 70
  • Baja Auto Ltd Sales Promotion No. of customers No. of customers, 24 No. of Style customers, 42 Product variety No. of Quality customers, 8 Mileage No. of customers, 26 Inference: From the data collected we can determine that most of the customer visits the bajaj by perception that product are stylist bike i.e. 42% and 26% for the product variety and 24% for the mileage. From this we can say that Bajaj have expand their product variety. 4. Are you aware of products offered by Arpita Bajaj? Table 5.4.4 Response No of customer Yes 69 No 31 Chart 5.4.4 H.R.Institute of Higher Education, Hassan 71
  • Baja Auto Ltd Sales Promotion No of customer No of No of customer, customer, , No, 31 No of customer, Yes, 69 Yes No Inference: From the data collected , we can conclude that majority of the customer that is 69 customer out of 100 customer said that they find different variety of product in Arpita automobiles and 31 customer said they don’t. 5. Was your vehicle delivered within the committed time? Table 5.4.5 Response No of customer Yes 57 No 43 Chart 5.4.5 H.R.Institute of Higher Education, Hassan 72
  • Baja Auto Ltd Sales Promotion No of customer Yes No No of customer, No, 43 No of customer, Yes, 57 Inference: Here from the above pie chart, 57 customer said that they find specific brand that they look in Bajaj bikes and 43 customer said No, from this we can conclude that Bajaj bike have different variety of product not that much variety of product and they have to rethink about the brand available in their showroom and they have to expand their brand availability. 6. Did you have any Bajaj company bike? Table 5.4.6 Response No of customer Yes 72 No 28 H.R.Institute of Higher Education, Hassan 73
  • Baja Auto Ltd Sales Promotion Chart 5.4.6 No of customer No of customer, No, 28 No of customer, Yes, 72 Yes No Inference: From the pie chart , we came to know that 72 customer’s out of 100 customer shop up to the period of 2-3 hour’s and by 28 customer shop up to the duration of above 3 hrs , this means Bajaj bikes have more product to Arpita automobiles. 7. How do you consider the service provided by Arpita Bajaj? Table 5.4.7 Response No of customer Excellent 46 Satisfied 16 Average 28 Not satisfied 10 H.R.Institute of Higher Education, Hassan 74
  • Baja Auto Ltd Sales Promotion Chart 5.4.7 No of customer No of 50 customer, 46 40 No of customer, 28 30 No of 20 customer, 16 No of customer, 10 10 0 Excellent Satisfied Average Not satisfied No of customer Inference: Most of the customer who visits to the Arpita Bajaj, would like to visit to the Bajaj bike first which means it shows customer preference towards pulsar style bike and followed by using Bajaj bikes. 8. What type of service do you expect from Arpita Bajaj in future? Table 5.4.8 Response No of customer Better service 42 Better settlements & claims 29 Better returns 19 Others 10 Chart 5.4.8 H.R.Institute of Higher Education, Hassan 75
  • Baja Auto Ltd Sales Promotion No of customer 10 Better service 19 Better settlements & 42 claims Better returns Others 29 Inference: From the above pie chart , we can analyze that the customer choice Better service in Arpita automobiles in spare & part service section , which shows that providing good service to customer in the Arpita Bajaj by different variety of product that can customer buy. 9. Rank the service given below according to your satisfaction level? Table 5.4.9 Response No of customer Information in time 12 Quick issues of re-imbursement 10 Claim & settlements procedure 31 Good relationship with customers 47 Chart 5.4.9 H.R.Institute of Higher Education, Hassan 76
  • Baja Auto Ltd Sales Promotion No of customer 12 Information in time 10 Quick issues of re- 47 imbursement Claim & settlements procedure Good relationship with 31 customers Inference: From the above pie chart, we get to know that most of the customer is somewhat satisfied with modern equipment and good relationship with customer in Arpita Bajaj. 10: How do you feel about the staff members and their responses towards your queries and doubts? Table 5.4.10 Response No of customer Quick response 20 Timely response 14 Delayed response 42 No response 24 Chart 5.4.10 H.R.Institute of Higher Education, Hassan 77
  • Baja Auto Ltd Sales Promotion No of customer No of customer No of customer 45 , 42 40 35 No of customer 30 No of customer , 24 25 , 20 No of customer 20 , 14 15 10 5 0 Quick response Timely response Delayed No response response Inference: From the above graph chart, we can analyze that the customer prefer the quick response the providing good service to customer in buying process of Arpita Bajaj. And 20 out of 100 is respond is bad to quick response during buying bikes in the customers minds. 11. Rank the company according to their relationship management with the customers Table 5.4.11 Response No of customer First 46 Second 36 Others 18 Chart 5.4.11 H.R.Institute of Higher Education, Hassan 78
  • Baja Auto Ltd Sales Promotion No of customer Others , 18 First , 46 Second, 36 First Second Others Inference: From the above that, we come to know that majority of the customer said that the store layout is not up to the mark, i.e. they are not satisfied with the store lay out present in the Bajaj bikes in the Arpita Bajaj. 12: When you think of Bajaj bikes which bike comes to your mind? Table 5.4.12 Response No of customer Pulsar 45 Discover 31 Platinum 13 Bajaj CT 100 11 Chart 5.4.12 H.R.Institute of Higher Education, Hassan 79
  • Baja Auto Ltd Sales Promotion No of customer No of customer 50 , 45 40 No of customer , 31 30 No of customer 20 No of customer , 13 , 11 10 0 pulsar Discover Platinum Bajaj CT 100 No of customer Inference: From the data collected with this question, 45out of 100 customer to respond about pulsar of Bajaj bikes is ok, 31 customer respond are discover, 13 customer are excellent in platinum, and 11 customer respond are good in Bajaj CT 100 , the inside the Arpita Bajaj services , so to improve the services inside the showroom. 13: How do you rate Bajaj bikes with mileage? Table 5.4.13 Response No of customer Excellent 46 Good 30 Fair 24 Chart 5.4.13 H.R.Institute of Higher Education, Hassan 80
  • Baja Auto Ltd Sales Promotion No of customer 24 46 Excellent Good Fair 30 Inference: From the above pie chart, we can analyze that the customer prefer the excellent the in the Bajaj bikes in mileage is good. And 100 out of 30 are respond is fair to buy the Bajaj bike in the Customers minds. 14. Was your vehicle delivered with all accessories & relevant papers? (Except Registration papers) Table 5.4.14 Response No of customer Excellent 43 Good 25 Average 22 Poor 10 H.R.Institute of Higher Education, Hassan 81
  • Baja Auto Ltd Sales Promotion Chart 5.4.14 No of customer No of customer 50 , 43 40 No of customer 30 No of customer , 25 , 22 20 No of customer , 10 10 0 Excellent Good Average Poor No of customer Inference: From the data collected with this question, 43out of 100 customer to respond about excellent of providing registration papers, 25 customer respond are good, 22 customer are average, and 10 customer respond are poor. 15. Would you suggest your friends and relatives to opt for Bajaj bikes? Table 5.4.15 Response No of customer Yes 82 No 18 Chart 5.4.15 H.R.Institute of Higher Education, Hassan 82
  • Baja Auto Ltd Sales Promotion No of customer No of customer , No, 18 Yes No No of customer , Yes, 82 Inference: From the pie chart, we conclude that the most of the customer that is 82% are satisfied with the purchasing with providing suggestion to friends and relatives, And 18% customer are not satisfied. 6. FINDINGS  Changing the motor bikes as per the taste and changing perceptions of the customers.  Manufacturing bikes as per the changing generations.  Advertising through local channel.  Avail festive offers. H.R.Institute of Higher Education, Hassan 83
  • Baja Auto Ltd Sales Promotion  One year free service after sales.  Providing loan facility.  Contribution towards the social development.  Customers are fully satisfied by Bajaj bikes and Service.  Getting more profit on installment schemes. SUGGESTIONS Conducting a detailed survey on the “Consumer attitudes towards sales promotion activities” it is found with some of the suggestions as below:  Suggestion box should be kept in the organization so that employees can give their point of view, complaints if any.  The time schedule for the working of employees should be reduced. H.R.Institute of Higher Education, Hassan 84
  • Baja Auto Ltd Sales Promotion  They are solely concentrated on customers with regular income for installment based sales, instead they must also concentrate on the customers other than them as well.  Reduce the interest rate on installment schemes.  Minimum amount of money should be spent on local advertisement. 7. CONCLUSION From this analysis I conclude that Arpita Bajaj is using a different promotional activity that is helping them to increase their set target and all the customers are fully satisfied by Bajaj bikes and their after sales service. In India, the two-wheeler industry is passing through a very interesting phase. Development such as the entry for more and more foreign manufacturers, best products for very least price in the market. H.R.Institute of Higher Education, Hassan 85
  • Baja Auto Ltd Sales Promotion With more than 40% of the motorcycle demand flowing from the rural sector, the success or failure of monsoon has a major influence on the sales volume. A lot of changes taking place in the market share, a divergent trend in share price and sharp swing in the price earning multiple. Bajaj continues to be the market leader in the motorcycle segment with a 44.7% share. But it has conceded vital market share to competitors such as Hero Honda (23.7%) and TVS motor (19.2%). Competitive price, fuel economy, more mileage, the company has been able to hold its ground. 8. BIBLIOGRAPHY 8.1 BOOKS • SHH kazmi Satish K Batra Advertising and sales promotion Third Edition Exel Books Page, No, 477 H.R.Institute of Higher Education, Hassan 86
  • Baja Auto Ltd Sales Promotion • Donald R. Lehman Russell S. Winner Product Management Fourth Edition Tata Mc Graw-Hill Publishing Company Ltd Page, No, 359 • C R. Kothari Business Research Methodology Second Revised Edition New Age International Publishers Page, No, 2-4, 31-32, 95-105, 55-67. 8.2 MAGZINES • Over Drive • Auto India 8.3 WEBSITES • Google com • Bajaj Auto. Com • India Info line. Com ANNEXURE QUESTIONNAIRE METHOD Questionnaire method is used to collect primary data, which is confidential. In this method of collecting data, a set of questions pertaining to the survey is prepared by keeping in mind the information required. This method is used to collect information where of investigation is very vast and large samples of information’s are selected for the survey before we frame the questionnaire it is essential to set out in detail the information, which we desire from the questionnaire. The questions should be arranged logically. APPENDICES H.R.Institute of Higher Education, Hassan 87
  • Baja Auto Ltd Sales Promotion Dear Sir/Madam, A survey being conducted by Vijay Kumar the student of H.R.I.H.E college Hassan, pursuing my 4th Semester MBA. Please co-operate by filling the questionnaire for “A study on the effectiveness of various sales promotions activities of Arpita Bajaj for increase sales and Services of Bajaj’s two wheeler’ all the information provided by you will be kept as a confidential by me. 1. Name : __________________________________________________ 2. Address ___________________________________________________________ _____________________________________________________ 3. Company : __________________________________________________ 4. Contact : __________________________________________________ 5. Occupation:_________________________________________________ 6. Are you aware of Arpita Bajaj? a) Yes b) No 7. How do you come to know about Arpita Bajaj? a) Cable Advertisement b) Friend c) Magazine d) News Paper 8. Why do you at Bajaj bikes? a) Style b) Product Variety c) Quality d) Mileage H.R.Institute of Higher Education, Hassan 88
  • Baja Auto Ltd Sales Promotion 9. Are you aware of products offered by Arpita Bajaj? a) Yes ( ) b) No ( ) 10. Was your vehicle delivered within the committed time? a) Yes ( ) b) No ( ) 11. Did you have any Bajaj bike? a) Yes b) No 12. How do you consider the service provided by Arpita Bajaj? a) Excellent b) Satisfied c) Average d) Not Satisfied 13. What type of service do you expect from Arpita Bajaj in future? a) Better Service b) Better Settlements & Claims c) Better Returns d) Others 14. Rank the service given below according to their relationship management with customers? a) Information in time b) Quick issues c) Claim & Settlement Procedure d) Good Relationship 15. How do you feel about the staff members and their responses toward your queries & doubts? a) Quick Response b) Timely Response c) Delayed Response d) Not Response 16. Rank the company according to their relationship management with customers? a) First b) Second c) Others H.R.Institute of Higher Education, Hassan 89
  • Baja Auto Ltd Sales Promotion 17. When you think of Bajaj bikes which bike come to your mind? a) Pulsar b) Discover c) Platinum d) Bajaj CT 100 18. How do you rate Bajaj bikes with mileage? a) Excellent b) Good c) Fair 19. Was your vehicle delivered with all accessories & relevant papers? [Expect Registration papers] a) Excellent b) Good c) Average d) Poor 20. Would you suggest your friends and relatives to opt for Bajaj bikes? a) Yes ( ) b) No ( ) 21. If you would like to give suggestion, please. _______________________________________________________________ __________________________________________________________ THANK – YOU SIGNATURE H.R.Institute of Higher Education, Hassan 90