a study on sales promotion · promotion is a helping function designed to make all other marketing...

A Study on Sales Promotion

S.R.N ADARSH COLLEGE

CHAPTER-1

INTRODUCTION



SALES PROMOTION

Promotion is the final element in the marketing mix. After the nature of product is

decided, its price fixed and the methods of distribution decided, the manufactures

has to take effective steps in meeting the consumers in the markets. In the present

consumer oriented markets it is the duty of manufacturers to know what is required

by the consumer. It is also their duty to make the customers know where, when

how and at what prices. The products would be available.

Meaning of Promotion

The term promotion is the term and includes mainly three type of sales

activity:

1. Mass impersonal selling methods (Advertising).

2. Face to face personal selling (Salesman ship).

3. Activities other than personal selling and advertising such as point of purchase

display (P.O.P.) show and exhibitions, demonstrations and other non securing

selling efforts. This form of activity is called ‗Sales Promotion‘.

Promotion and Sales Promotion

Similarly the terms sales promotion cannot be taken to mean what is commonly

does. Sales promotion is only a part of the promotion. Basically promotion is an

"exercise" in information persecution and influence. Promotion has come to mean

the overall co-ordination of advertising selling, publicity and public relations.

Promotion is a helping function designed to make all other marketing activities

more effective and efficient. But sales promotion as such helps only the selling

activity still, there exit same difference of opinion on the real connection of the

term sales promotion.



According. To A.H.R. Delons:-

"Sales promotion means any steps that are taken for the purpose of obtaining or

increasing sales".

According. to W.Q. Kelly Opines:-

"Muddled misused misunderstood that is sales promotion Acc. to him the field of

sales promotion as a marketing activity is still vaguely defined and organized.

Sales Promotion and Advertising

There is no universally accepted distribution between these two terms. To same

advertising includes all forms of mass media communication directed towards

influencing the end consumer. Sales promotion on the other hand, includes the

form of mass communication directed towards information and influencing the

channel of distribution (e.g. distributors, retailers etc.). Hence a price of product

literature distributed by retailers in sales promotion. These sales promotions merge

on one side in to advertising and on the other in to personal salesman ship. It is

concerned with the dissemination of information to whole sellers, retailers,

customers (both actual and potential, and to the salesman).

Sales promotion is concerned with the creation. Application and dissemination of

material and techniques that supplement advertising and personal selling. Sales

promotion makes use of direct mail, catalogues, trade shows, sales contests,

premiums, samples, windows displays and other aids. Its purpose is to increase the

desire of salesman, distributors and dealers to sell a certain brand to make

consumers more eager to buy that brand. Personal selling and advertising do

include prospects to make these decisions. Sale promotion provides an extra

stimulus.



Objective of Sales Promotion

To increase sales directly by publicity through media which are

complementary to press and poster advertising.

To disseminate information through sales man dealers etc. So as to insure

the product getting in to satisfactory use by the ultimate consumer.

To attract new consumer.

To face the competition effectively.

To help salesman in selling more to the retailers and consumers.

To check seasonal decline in sales. Generally speaking sales promotion

involves rendering the following services:-

o Services to dealers.

o Services to own salesman.

o Special publicity.

Sales Promotional at different levels

1. Sales promotion at Dealers Level:-

It may include various schemes some of which are discussed here.

(i) Advertising Materials:-

The advertising material prepared by the company such as store signs, banners,

shelf signs, board etc. are distributed to sub dealer for display purposes this is in

fact a method of advertising.

(ii) Store Demonstration:-

In the promises of the whole seller or the retailer the products sales personnel will

conduct special demonstration for the company‘s product. A personal

demonstration is good to introduce a new product at its peculiar advantage can be

high lightened and the consumer‘s doubt clear. It can be used to restimulated an



old product. A good demonstration with a great dealer of action will draw heavy

crowds in to the store and will attract attention to the product.

(iii) Special Display and Shows:-

These are in seasonal in character but could be arranged in an elaborate manner

and for all the products of an company. Usually these are arranged along with trade

fair and exhibition. Besides effecting sales these shows impress the company‘s

name generally on the public.

Sales promotion at consumer’s level

The various schemes of sale promotion at Consumer‘s Level may include.

1. Coupons (A Chit of Stated Value) :-

These are given directly to the consumer these coupons are in most cases kept

inside the package. The consumers many receive a price reduction of the stated

values of the coupon at the time of purchase. The retailer receives reimbursement

for the value of the coupon form the manufacturer. Coupons act as a short run

stimulus to the sale of the product, since they are directly tied with the purchase of

the item. They encourage the retailer to stock the product.

What is important is that a coupon offer does not spoil the named price of the

brand nor does it UN pair the margin of the dealers. But it is not easy to measure

the effectiveness of a coupon offer. One over knows how many customer would

have bought the product without the incentive. It is also difficult to find out how

many customers were held after the coupon offer expired.

2. Price-off-offer (Also known as bargain offer price packs) :-

This offer is intended to stimulate the sales during a slump season. In this method

the customer is offered a reduction from the printed price list. It is also used when

a substitute for competing product enters the market.



Many experts on sales promotion fed that ‗Off Schemes‘ are among the weaker

and less desirable methods of promotion. These can be trade resentment

particularly when the retailer raises the price to retain his margin. Secondly that is

not conductive to building up brand loyalty. Consumers may simply shift to the

products that offer this scheme.

3. Samples:-

In the hope of converting a prospect into a customer a sample (Some quantity of

the product) may be given. This helps the consumer to verify the real quality of the

product. Various pair manufacturing companies offer this method. For developing

brand loyalty this method is quite useful. Sampling is a fast method of demand

creation because one knows the result as soon as the consumer has had time to use

the sample and buy the brand.

Disadvantage of Sampler:-

Offering sample in quit expensive. There is the cost of producing samples. The

distribution costs are also high. Samples have to be mailed to potential customers

or to be distributed through retail shops. There are also problems when the real

product does not resemble the sample supplied.

4. Money Refund Offer:-

An offer usually stated on the package is that manufacturers will return within a

stated period part or all of the purchaser‘s money if he is not completely satisfied

with the product.

5. Trading Stamps:-

A premium in the form of stamps is given by the sellers to consumers while selling

goods. The number and value of stamp that the buyer receives depends on the

values of the purchase. These stamps are redeemable through premium catalogues

at the stamp redemption centres.



6. Buy-Back Allowance:

This an allowance following a previous trade deal not offer a certain amount of

money for new purchases based on the quantity of purchases on the first trade deal.

It extends the life of a trade deal and helps to prevent part deal sales decline. It

greatly strengthens the buyer‘s motivation to co-operate on the first deal.

7. Premium:-

There are various forms of premiums provided by the manufacturer as sales

promotional devices:-

(a) Coupons are supplied for effecting price reductions.

(b) Factory in pack premium these are popular in the case of Body food and Tin

food items, Spoons, Cups, Measuring, Glass etc. and such other items are packed

with the product in the box itself. Factory in pack premium are particularly goods

for product meant for children. The Binaca Toothpaste packs contain animal shape

toys. These are very attractive and quite popular among the children.

(c) Self Liquidating Premiums:-

The cost of the premium is collected from the buyer himself. But when the buyers

pays for it he has to pay only a considerably low price for the premium. This is

possible for the manufacturer purchases the items in bulk at a premium and his cost

per unit as is substantially low.



Other Steps by Manufacturer for Promoting Sales

Dealers can be helps in different ways:-

1. Communicating Market News:-

Often this service is reciprocal the manufacturer may acquaint his dealer with the

fact relating to his production and prices while the dealer may familiarize him in

return with the information bearing on charges in the consumer's demand, their like

and dislike complaints and criticism, substitutes etc.

2. Inviting to Sales Conference and Convention:-

The gestures of regard and respect pave the way for better relation and co-

operation.

3. Offering Reasonable Terms of Sale:-

Of all the forms of encouragement, the monetary incentive evokes immediate

response. Hence every producer must offer the most responsible terms of sale such

as longer periods of credit and higher rates of descants.

4. Supplying suitable packages and useful things.

5. By taking the return back.

6. By furnishing them with sales literature and display materials.



Aggressive Selling

Meaning:-

Goods are produced for market. Manufacturers have to make efforts to sell all they

produce. When the manufacturers use various sales efforts to obtain increased

sales volume for his product it is called aggressive selling or offensive selling. The

sales efforts which a manufacturer makes to retain his customers i.e. to protect his

already established market against his competitors is termed as defensive

selling. In contrast to this aggressive selling is concerned with the sales efforts

made with the express objective of selling more by expanding the market for the

product of the selling firm.

Aggressive Selling and Defensive Selling:-

Aggressive selling is based on the answer to the question how much does the firm

gain (in term of sales with profit) by using this method defensive selling is based

on consideration as to how much the firm will lose if it does not use this method

increase of sales can be obtained from two sources:-

1. New customers if the market is expending.

2. From the competitors i.e. those consumers who were purchasing similar product

of competition firms, if the market for the product is static.

According. To H. Whitehead:-

"In case of an expanding market the entire firm may stand to gain by following the

methods of aggressive selling but if the market is static manufacturer of a new

market will have to be much more aggressive to capture the established market of

competitors".



When Aggressive selling is resorted?

Usually manufacturer of a new product has to do aggressive selling:-

1. When the product has been improved.

2. When the manufacturer‘s product is supervisor in quality to the product of the

established competitor.

3. When the total market for the product or line of product to expanding.

4. If the manufacturer‘s share of the market is comparatively small.

5. If the manufacturer has unused production capacity with heavy investment in

plant and equipment he will like to develop the demand for his product rapidly so

that demand for his product is equal to the optimum production capacity of his

plant ; and

6. When primary demand for a product must be created and provision must be

made in the channel of distribution to educate consumers regarding the new

product and to instruct them in its use.

Method of Aggressive Selling:-

Sales promotion efforts use for aggressive selling may be divided in two classes.

1. Trade Promotion.

2. Consumer Promotion.

1. Trade Promotion:-

Under trade promotion methods special incentives are offered to the trader to buy

products of the firm. Such incentive may take one or more of the following firm :-



(a) Cash Allowance:-

A definite percentage of discounts are allowed on the purchase of given unit of a

product.

(b) Extra Product:-

Instead of giving any cash allowance extra product is given with each unit of

product ordered. For instance if a box normally contains 20 Cakes of Soap, special

box contains 25 cakes may be made and sold at the same price as that of the box of

20 cakes.

(c) Gifts:-

Various gifts are awarded in return for an order of a particular magnitude.

2. Consumer Promotion:-

Under consumer promotion method special incentives are offered to the consumers

to buy the firms product. The more prominent amongst such incentives are as

following.

(a) Coupons:-

A coupon of a giving value is sent to the consumer. By presenting this coupon to

the retailer consumers can purchase a particular product mentioned on the coupon

at a reduced price. The retailer sells the products mentioned. In the coupon to such

consumer (consumers presenting the coupons) under an agreement with the

manufacturer at a price lower than the user retail price. Thus the consumers get the

benefit of reduced price to the extent of the value of the coupons.

(b) Self Liquidating Offers:-

Under this system, the firm offers an article at an attracting price if the consumers

send a given sum of money accompanied by a given number of box tops from the



packages of a particular product the benefit to the consumer is that he receives the

articles at a bargain price.

(c) Bargain Packs:-

Under this system a product is sold at a reduced price for a short period Bargain

pack method encourages new consumers to try the product. It is also helpful in

obtaining large displays in the shops.

(d) Sampling:-

The method involves giving the product or a small quantity of the product to a

consumer free with the hope that the customer will be favorable impressed with its

actual use and will eventually become a regular purchaser of the product.

A firm selling new product or an extensively improved product finds this method

useful. Also a firm whose market is hold by competitors whose free sampling

almost expensive.

The above mentioned methods may be reinforced by adopting.

(i) Direct method of selling through.

(ii) Offer of door to door selling.

(iii) Hire purchase and installment payment methods of selling and by forming

combination.

Other Methods of Aggressive Selling:-

(i) Employment of ‗Missionary Salesman also known as Promotional Salesman‘.

These salesmen call upon retailers and aggressively promote a product.

(ii) Instead of using wholesalers, the firm may develop its own sales force to call

directly on retailers.



(iii) The firm may follow a compromise method by employing a manufacturer‘s

agent and giving him a large enough commission to encourage him to sell product

intensively and aggressively.

(iv) New territory exploitation sales promotion has a particularly important role in

developing the company‘s product in new territories.

Marketing

Marketing is a social and management process by which individual and

group obtain what they want thought creating, offering and exchanging product of

values with other. Marketing is concern with meeting business objectives by

providing customer satisfaction.

―Achieving organization goals depend on determining the need and wants of

the target market and delivering the desired satisfaction more effectively and

efficiently than competitors‖ - Philip kotler

FUNCTIONS OF MARKETING:

1. Buying and Assembling

2. Selling

3. Transportation functions of physical supply

4. Storage

5. Facilitating functions

6. Financing

7. Risk taking

8. Standardization and grading

9. Market information



Marketing concept

Is found on the brief that profit can be best achieving by identifying,

anticipating and satisfying customer need and wants.

A company which has adopted this concepts and philosophy placed the

customer at the centre of all business decisions.

Customer need permeate all levels and functions in the organization.

Co-ordinate and integrate all marketing activities that might affect customer.

Marketing research

Marketing research involved conducting research to support marketing

activities, and the statistical interpretation of the data into information. This

information is then used by managers to plan marketing activities, gauge the nature

of a firm‘s marketing environment and attain information from suppliers.

Marketing researchers use statically methods such as a quantitative research,

hypothesis tests, and chi squared tests, linear regression, correlations, frequency

distribution, binomial distributions, etc. to interpret their findings and convert data

Marketing concept

The achivement of goals through meeting and

execeeding customer needs better than

rivals

customer orientation Integrated effort Achievements of

goals by satisfying customer



into information. The marketing research process spans a number of stages,

including the definition of a problem, development of research plan, collection and

interpretation of data and disseminating information formally in the form of are

port. The task of marketing research is to provide management with relevant,

accurate, reliable, valid, and current information.

A distinction should be made between marketing research and market

research. Market research pertains to research in a given market. As an example, a

firm may conduct research in a target market, after selecting a suitable market

segment. In contrast, marketing research relates to all research conducted within

marketing. Thus, market research is a subset of marketing research.

Market segmentation

Market segmentation pertains to the division of a market of consumers into

persons with persons with similar needs and wants. For instance, Kellogg‘s

cereals, Frostier are marketed to children. Crunchy Nut cornflakes are marketed to

adults. Both goods denote two products which are marketed to two distinct groups

of persons, both with similar needs, traits, and wants. In another example, Sun

Microsystems can use market segmentation to classify its clients according to their

promptness to adopt new products.

Market segmentation allows for a better allocation of a firm‘s finite

resources. A firm only possesses a certain amount of resources. Accordingly, it

must make choice in servicing specific groups of consumers. In this way, the

diversified tastes of contemporary western consumers can be served better. With

growing diversity in the tastes of modern consumers, firms are taking note of the

benefit of servicing a multiplicity of new markets. Market segmentation can be

defined in terms of the STP acronym, meaning Segment, Target and Position.



Types of Market research

Market research, as a sub-set aspect of marketing activities, can be divided

into the following parts:

Primary research (also known as field research), which involves the

conduction and compilation of research for a specific purpose.

Secondary research (also referred to as desk research), initially conducted

for one purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market

research conducted into health foods, which is used solely to ascertain the

needs/wants of the target market for health foods. Secondary research in this

case would be research pertaining to health foods, but used by a firm

wishing to develop an unrelated product.

Primary research is often expensive to prepare, collect and interpret

from data to information. Nevertheless while secondary research is relatively

in expansion, it often can become out dated and outmoded, given that it is

used for a purpose other than the one for which it was intended. Primary

research can also be broken down into quantitative research and qualitative

research, which, as the term suggest, pertain to numerical and non-numerical

research methods and techniques, respectively. The appropriateness of each

mode of research depends on whether data can be quantified (quantitative

research), or whether subjective, non-numeric or abstract concepts are

required to be studied (qualitative research)

There also exist additional modes of marketing research, which are:

Exploratory research, pertaining to research that investigation an

assumption.

Descriptive research, which, as the term suggests, describes ― what

is‖.

Predictive research, meaning research conducted to predict a future

occurrence.

Conclusive research, for the purpose of deriving a conclusion via a

research process.



Marketing Strategy

The field of marketing strategy considers the total marketing environment

and its impacts on a company or product or service. The emphasis is on ―an in

depth understanding of the market environment, particularly the competitors and

customers.‖

A given firms may offer numerous products or services to a marketplace,

spanning numerous and sometimes wholly unrelated industries. Accordingly, a

plan is required in order to effectively manage such products. Evidently, a

company needs to weigh up and ascertain how to utilize its finite resources. For

example, a start-up car manufacturing firm would face little success should it

attempt to rival Toyota, ford, Nissan, Chevrolet, or any other large global car

maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the

issue of divert, or a ceasing of production, may be made. Each scenario requires a

unique marketing strategy. Listed below are some prominent marketing strategy

models.

MARKETING MIX

Marketing mix is a mix of controllable elements or tools which is a company use in

its marketing plan.

DEFINATION:

―Marketing mix is the firm the best solution for its marketing decision variables;

the settings constitutes its marketing mix‖

THE 7P‘s OF MARKETING ARE:-

1. Product

2. Place

3. Price

4. Promotion

5. People



6. Process

7. Physical evidence

1. PRODUCT:

A product is the first p in the marketing mix it can be understood as any tangible

good which satisfies the needs and wants of the customers and fetches the value in

exchange. The term ‗product‘ refers to tangible, physical products as well as

service. In the case of physical products, it also refers to any services or

conveniences that are part of the offerings. Product includes are:

Packaging

Quality

Brand name

Safety

Styling

Technology

Usefulness

Warranty

Value

2. PRICE DECISIONS:

Price is a major marketing tool and helps in directing the product to a specific

consumer segment. It is the price of the product or a service that ensures a decent

return in investment, guarantees stable economic structure, creates, maintains and

extends market and market share. Price includes:

Price discrimination.

Price flexibility.

Pricing strategy.

Seasonal pricing.

Volume discount and wholesale pricing.

Suggested retail price.



3. PLACE (DISTRIBUTION) DECISIONS:

The channels of distribution is the organized network or a system of agencies and

institution which in combination perform all the activities required to link

producers with users to accomplish the marketing task. The distribution system

performs transactional, logistical, and facilitating functions. Distribution channels

include:

Warehousing

Transportation

Distribution Channels

Distribution Centers

Inventory Management

4. Promotion Decisions:

Promotion mix is the communication mix which deals with the personal and

impersonal persuasive communication about the product or service of the

manufacturer. Promotions are related to communicating and selling to potential

consumers. It is done with the objective of generating a positive customer

response. Promotion includes:

Advertisement

Sales Promotion

Personal selling & sales force

Public relation

Publicity

Special Offers

User trials

Free Gifts.



5. People:

This refers to mainly the service provider and service receiver. Since providing the

service isn‘t tangible, both the provider and the receiver must be physically present

together at the same time and the same place in order to provide and encounter the

service, respectively.

The receiver trusts the provider and as a result, affects the purchasing decision in

the marketing and the management of services in their role both as provider of the

service and the customer. People include:

Employees

Management

Culture

Customer service.

6. Process:

Process here means step-by-step method of the sequential method as a service must

be provided to the customer. If there‘s no proper method or process of providing

the service, then the customer‘s needs won‘t be fulfilled and as a result, the

satisfaction derived after being provided with service will be very low and the

customer might not come back again to the same provider, to encounter the

service. Hence process mix is very important in services marketing. Process

includes:

Especially related to service industries.

How are services consumed?

7. Physical Evidence:

This is the marketing mix available to the service providers where in, it is the

physical place where the service encounter takes place. This includes not only

building, but also right ambience which must also be appropriate and suit the type



of service being provided. The potential customers form impression about the

service organizations on the basis of physical evidence like brochures, stationery,

equipment, furniture and building. Physical Evidence includes:

Facilities

Comfort

Interface

Automobile Industry in India

Introduction

India represents one of the world‘s largest automobile industries. Easy availability

of finance and rising income levels are encouraging the middle class population to

upgrade their two wheelers to a car. Besides, the growing organized used car

market has also been a positive growth factor in the used car market of the country.

Driven by the above factors, the used cars market is anticipated to grow at a

compound annual growth rate (CAGR) of 16 per cent during 2013–17, highlighted

the RNCOS report titled, ‗Booming Used Car Market in India Outlook 2017‘.

India is quietly becoming a production hub of high-end vehicles meant for export

to China. The US-based motorbike maker Harley Davidson, Austrian motorcycle

manufacturer KTM and Mahindra & Mahindra have also preferred to set up

manufacturing facilities in India than in the relatively low-cost China and export

the output.

Furthermore, India is set to become Mercedes Benz‘s fastest-growing market

worldwide ahead of China, the US and Europe, according to internal projections.

We expect growth rates to be the fastest in India globally, and expect sales to move

up by 10 per cent over the next five years or so, as per Mr Matthias Luhrs, Vice-

President (Global Sales), Mercedes Benz Cars.



Key Statistics

The passenger vehicles production in India touched 3.23 million units in 2012–13

and is expected to reach 10 million units by 2020–21. The industry is estimated to

grow at a CAGR of 13 per cent during 2012–2021. In addition, the industry

recorded exports worth US$ 9.3 billion in 2012–13 and is projected to touch US$

30 billion by 2020–21, according to data from Automotive Component

Manufacturers‘ Association (ACMA).

The cumulative foreign direct investment (FDI) inflows into the Indian automobile

industry during April 2000 to October 2013 was recorded at US$ 9,079 million,

amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data

published by Department of Industrial Policy and Promotion (DIPP), Ministry of

Commerce, Government of India.

India is also expected to emerge as a centre for producing compact superbikes as

Indian customer‘s progress to the next level of biking. Several global and Indian

bike makers plan to utilize India's mass-production base of 16 million two-

wheelers to roll out sports bikes in the 250 cc capacity.

More so, the demand for premium sports utility vehicles (SUVs) will continue to

grow. The market size of premium SUVs was estimated to be around 25,000 units

annually in India.

Major Developments & Investments

Tata Motors Ltd plans to invest about £30 million (US$ 49.17 million) in the

National Automotive Innovation Campus (NAIC) for research and

development (R&D). The investment would be made through its subsidiary

Tata Motors European Technical Centre (TMETC) at the University of

Warwick campus, UK.

Volvo India Pvt. Ltd plans to set up truck and bus manufacturing facility in

Malur, Karnataka, with an investment of Rs 974 crore (US$ 158.32 million).

The facility is expected to give employment to about 2,125 people.

Manufacturing companies in Japan continue to view India as the top



destination for investments—over China, Thailand, Vietnam, Brazil and

Indonesia—in the next three years, according to Mr. Masanori Nakano,

Consul General of Japan in Chennai.

Tata Motors-owned Jaguar Land Rover (JLR) has entered into an agreement

with the state of Rio de Janeiro to build a manufacturing plant in Brazil with

an investment of Rs 4,626 cro (US$ 751.95 million).

JBM Auto has formed a joint venture (JV) with Italian bus maker Breda

Menarinibus to manufacture luxury buses in India. The Indo–Italian venture

plans to set up a plant at Kosi, near Faridabad in Haryana, and produce 2,000

buses every year initially, at an investment of Rs 500 crore (US$ 81.27

million).

Mahindra & Mahindra (M&M) plans to develop the world's first hybrid

technology that can be deployed in vehicles with manual transmission and

enhance fuel efficiency by almost 20 per cent.



CHAPTER-2

RESEARCH DESIGN



Research meaning

Research means search of knowledge. It can be also define as a scientific

and systematic search for pertinent information on a specific topic. In fact research

is an art of scientific investigation. The advanced learner‘s dictionary of current

English lays down the meaning of research as ―a careful investigation or inquiry

especially through search for new facts in any branch knowledge‖.

Research methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is done

systematically. The research study consists of various steps generally adopted by a

researcher in studying research problem along with the logic behind them. It is

necessary for the researcher to know not only the research methods or techniques,

but also the methodology.

Definition Research Design

A research design is a plan that specifies the sources and types of

information relevant to the research problem. It is a strategy specifying which

approach will be used for gathering and analyzing the data. A research design

provides a rational approach to research enabling one to decide in advance what to

do, how to do, when to do, in investigating the subject. It enables the researcher to

carry out the project within the given time, available means and manpower of

achievement of the objectives. The research design is simply a specific

presentation of the various steps in the process of research. Design means adopting

that of techniques of research which is most suited for the research and study of the

problem. By preparing a design the research can collect relevant information with

minimum expenses and minimum time. The research design depends on the

research purpose.



Meaning of Questionnaire

Questionnaire is a list of questions or statement pertaining to an issue or

program. It is used for studying the opinions of people. It is commonly used in

opinion polls. People are asked to express their responses to the listed or reactions

to the listed statement.

Characteristics of a good questionnaire

The purpose, objective and scope of the questionnaire in particular and the

study as a whole in general must be clearly identified and specified.

Personal details like names, sex, age, educational level, etc., which are

closely related to the basic aspects of the study should have a proper place

in the questionnaire.

The questions must be easily understandable, clearly presented, and simple

and brief in appearance.

Predetermined and well planned answers can be provided through leading

questions should be avoided.

Meaning of Sampling

Sampling is simply the process of learning about the population on the basis

of a sample drawn from it. Thus, in the sampling technique instead of every unit of

the universe only a part of the universe is studies and the conclusion are drawn on

that basis for the entire universe.

Method of sampling

1. Random sampling or probability sampling

Simple random sampling

Stratified random sampling

Systematic sampling



Cluster sampling

Sequential sampling

Multi stage sampling

2. Non-random, non-probability sampling

Quota sampling

Convenience sampling

On-the-spot sampling

Title of the Study

A study of, ―SALES PROMOTION‖ with respect to ―VPRO AUTO

PRODUCT COMAPANY‖

Statement of the Problem

Sales promotion is one of the measure tools for increasing the sales volume

for a short period of time.

Sales promotion includes discount, coupons offers, buy one get one free offers, gift

offers, sampling, etc. this tools will helps the company to increase market share

and bearing in more awareness to the customer about their product.

Hence, my study will find out the ―SALES PROMOTION‖ activity and it is

effect with reference to that company.

Objectives of the study

To understand sales promotion of Vpro company.

To analyses sales promotion activity of Vpro company against its

competitors.

To attract new company.

To maintains exiting customer.

To maintains goodwill of Vpro Company.



Scope of the study

The study analyzes the sales promotion activities of Vpro in comparison to its

competitors and also explores the ways of retaining its existing customers and on

how to attract new customers. The study will be conducted on the existing and

potential customers.

Methodology of the data

The methodology involves collection of data from primary and secondary

sources. The data so collected is subjected to analysis using the necessary tools that

are relevant. Inferences are drawn incorporating both quantitative and qualitative

data are available at the researcher‘s disposal. Based upon the inferences,

conclusions are drawn and recommendations are made to enhance the study on

sales promotion of Vpro auto Product Company.

In the study, questioners and direct interviews are used as a medium of data

collection. Tables, charts, graphs are used for data analysis.

Types of research and tools for data collection

The data relevant to the study was collected through primary and secondary

data.

PRIMARY DATA was collected through the discussion with the dealers,

customers, and fleet owners.

SECONDARY DATA was collected from text books, magazines, internet

and libraries and through the records of the company.



Data analysis

The primary and the secondary data have been analyzed with the

information received. Feedbacks from the questioners are used to analyses the data.

Reference period

The reference period is of the one month that is from 17th

February 2014 to

18th march 2014.

Limitation of the study

The scope of the study is limited to the dealer and consumers of Bangalore

(Karnataka). Thus confined to this city only and is not universal applicable.

Sometimes the consumer does not reveal the correct information so biases

come.

People do not like to waste times in giving the reply.

Human error factor is always involved as a basis limitation in study.

The result determined by the survey is of the selected respondents based on

the information given by the prospect.



CHAPTER 3

INDUSTRY AND COMPANY PROFILE



History of Vpro auto product

―Vpro Auto Product‖ partnership firm a firm was commissioned in the year

2009. Vpro auto products is located at 113/2 9th

cross, doddanna industrial estate,

near peenya 2nd

stage, Bangalore-91.

Vpro company manufacture DC electric horns suitable for automobiles such as

cars, jeep, LCVs, HCVs, auto rickshaws, trucks, tractor, motor cycle and scooters

in wide ranges of visual appeal, fitment and operating voltages.

The manufacturing facility comprises of press shop, assembly and testing facilities

backed up by design and development. About 8 dedicated and skilled associates

from our workforce and are supported by good ancillary support for rubber, plastic

and metal components. Substantial portion of VPRO auto products business is for

branding of different types of vehicle manufacturers as stated above, apart from the

open market. Vpro auto product has a network of distribution outlets spread all

over the company.

With the objectives of meeting customer‘s requirements consistently, now QMS is

being implemented as per ISO 9001:2008

Vpro auto product is committed to provide consistent quality of products and

service, which meets the customer requirement. This commitment is fulfilled

through continuous improvement efforts and cost-effective measures in every

functional area.

Infrastructure

Company infrastructure is set up 8000 sq ft area. The investment comprising

of 4, 8 and tone hydro pneumatic presses, contract riveting, closed horn testing

chamber, power press etc., and other basic facilities required. Additional

investments are planned based on the requirements for further expansion. The

critical components are manufactured in house to ensure quality assurance of the

component. Company has current production capacity of 50,000 horns/ month and

will be expended based on the requirement time to time. The robust design of tools



with pokayoke, right sources of raw material, process will result in the better

component and finally the product.

Production and Quality

Work experience of more than 15 years in similar industry has worked in

various capacities from quality, design and production. And every horn is tested in

a closed chamber monitored with frequency meter, voltmeter, and ammeter with

high, low and normal working voltage range as per standards.

Digitally monitored test chamber to check the life of the horn as per IS 1884: 1993

standards. Quality of the product is monitored at each stage of production and on

life inspection, set up approvals, display of limit samples. Etc.

Performance

Currently company is manufacturing 75 dia & 92 dia horns for the

aftermarket requirement in both AC/DC 12V and 24V.

75 dia horns with different brackets suitable for hero Honda, kinetic Honda, Honda

activa, TVS victor, TVS Suzuki, TVS XL, BAJAJ pulsar, BAJAJ auto rickshaw‘s

and AC/DC horns.

92 dia repairable type horns suitable for 12V and 24V battery vehicles.

Objectives of company

Customer service improvement

To Increase in productivity

Minimize the production cost

To reduce internal rejection

To enhance customer satisfaction

To reduce customer complaint.

Reliability.

To provide timely delivery



Product profile

This horn is suitable in two wheeler like

hero Honda, kinetic Honda, Honda active

and Suzuki etc.

Thise product suitable in

only tractor.. the voltage

capacity is 12v, current (A)

is 3.0 A Max and sound

level (dB A) 110 +- 20 hz.



People use melody maker

in two wheeler to making

different sound in the vehicles. It is suitable for all 12V battery vehicles.

Mini Vibro in suitable for

four wheeler vehicles and

12V/6V battery vehicles.

Under these horn volts (V)

capacity is 12v/6v, current (A) 3.0 a max and sound level (dB A) is 110 +- 3



These horn suitable

only in BAJAJ pulsar

all model. And they are

two types of horns one

is positive and another

is negative. Each horn

has a capacity of 12

volts, current (A) is 3.0

A Max, and sound level

(dB A) is 110 +- 3 dB.

This type of horn suitable for

super XL, scooty and Suzuki etc.

it is also suitable for three

wheeler like auto rickshaw. This

horn has a product like a

condenser. And voltage capacity

is 12 V alter current and direct

current, current (A) 2.2 a max and

sound level capacity (dB A) is

108 +- 5 dB.



CHAPTER 4

DATA ANALYSIS AND INTERPRETATION



Analysis and Interpretation

1. Present Fitment:

Sample size 50 customer

Vpro 4

Roots 28

Bosch 8

Minda 6

Varroc 4

Present Fitment

Interpretation: Studying the questionnaire of 50 customers it was found that 8%

of the customers were using Vpro, 55% were using Roots, 15% were using

Bosch, 12% were using Minda and 10% were using Varroc.

Inference: The majority of customers prefer Roots. A small portion of them prefer

Vpro.

0%

10%

20%

30%

40%

50%

60%

Vpro Roots Bosch Minda Varroc



2. Awareness of the Vpro as a brand:

Sample size 50 customers

Aware 18

Unaware 32

Interpretation: studying the questionnaire of 50 customers it was found that 35%

were Aware of Vpro as a brand and that 65% of them were Unaware of it.

Inference: most of the customers are not aware of Vpro as a brand.

35%

65%

Level of Awareness

Aware Unaware



3. Sources of information gathered before purchasing:


Sources Customers

TV Commercial 0

Newspaper 17

Friend 26

References 7

Internet 0

Interpretation:

Studying the questionnaire of 50 customers it found that 53% gathered

information from Friends before purchasing where as 0% from TV Commercials,

14% from References, 33% from Newspaper and 0% from Internet.

Inference:

Most of customers gathered information from friends before purchasing a Vpro

product.

0%

33%

53%

14% 0%

sources

TV Commercial newspaper Friends References internet



4. Quality of Vpro product with reference to dealer:

Sample size 15 dealers

Quality Customers

Very Good 6

Good 6

Satisfactory 3

Poor -

Interpretation: Studying the questionnaire of 15 dealers it was found that 40%

dealers found the quality is very good, 40% dealers found it to be good and 20%

dealers found it to be satisfactory.

Inference: Most of the dealers are highly satisfied with the product but some of

them were reasonably happy with the product. Only a handful of them were less

satisfied with the product.

Very Good 40%

Good 40%

Satisfactory 20%

Poor 0%



5. Number of Vpro Dealers according to the sample size:


status Dealers

Dealer 5

Non Dealer 10


were Dealers and 68% were Non Dealers

Inference: Majority of respondents are not dealing with the product manufactured

by Vpro Company. Only some deal with the company product.

32%

68%

Dealer Non Dealer



6. Dealers opinion of the sales promotional activities given by Vpro

product:

Sample size 15 dealer

Sales Promotional Activities Dealers

Very good 1

Good 8

Satisfactory 4

Poor 2


dealers found the sales Promotional activities to be very good, 53% found it to

be good, 27% found it to be satisfactory and remaining 13% found it to be poor.

Inference: More than half of the respondents found the sales promotion done by

Vpro Company is good while some of them found it satisfactory.

Very good 7%

Good 53%

Satisfactory 27%

Poor 13%



7. Dealers opinion about credit period given by Vpro:


Credit Period Dealers

Very Good 4

Good 5

Satisfactory 3

Poor 3


dealers founds the Credit Period is very good, 33% found it to be Good where as

20% found it to be satisfactory and 20% found it to be poor.

Inference: Majority of the respondents found the credit period given by Vpro is

good while equal number of respondents gave the feedback as satisfactory and

poor

Very Good 27%

Good 33%

Satisfactory 20%

Poor 20%



8. Dealers opinion of the price of Vpro product:

Sample size 15 Dealers

Price Dealers

Very High 3

High 6

Average 6

Low -

Interpretation: Studying the questionnaire of 15 Dealers it was found that 20%

found the Price to be Very High, 40% found it to be high and the remaining 40%

found it to be average.

Inference: Equal number of respondents found the price of Vpro product high as

well as average. And the remaining felt the price is very high.

Very High 20%

High 40%

Average 40%

low 0%



9. Dealers opinion of the promotional factory they expect from Vpro:


Factors Dealers

Promotional Scheme 8

Sales Follow-up 4

Service 2

Credit Facility 1


wants the company to have promotional scheme, 25% wanted to have sales

follow-up, 13% wanted service and 9% wanted credit facility.

Inference: Most of the respondents expect a great promotional scheme from Vpro

to promote their products.

0%

10%

20%

30%

40%

50%

60%

Promotional Scheme Sales Follow-up Service Credit Facility

Percentage

Percentage



10. Expectation in a using a horn:


Advantage Important Neutral Not Important

Sound Level 15 20 15

Brand 16 27 7

Price 32 10 8

Interpretation: Studying the questionnaire of 50 customers

Sound level: 40% of customers are neutral for sound level

Price: 54% of customers are neutral for price.

Brand: 65% of customers are important for brand.

Inference: Majority of the respondents are having a mixed opinion on sound level

of the horns, More than half of respondents also gave a mixed response on price of

the product and Most of the respondents feel the brand image is very much

essential in decision making process of customer.

30% 32%

65%

40%

54%

20%

30%

14% 15%

sound level price brand

important neutral not important



11. Sales promotion activity


Sales promotion activity Customers

discount 35

Gift 3

Coupons 5

offers 7

Interpretation: Studying the questionnaire of 50 customers it was found that

70% liked discount, 5% liked gift, 10% liked coupons and 15% customers liked

other offers.

Inference: Most of the customer expects a discount on the price of the product

among other sales promotion activity.

discount 70%

gift 5%

coupons 10%

offers 15%

sales promotion activity



CHAPTER 5

FINDINGS AND SUGGESTIONS



Findings

Buying process in mostly through word of mouth

Communication.

Customers are more concerned with the quality than the brand.

Credit period (3 months) given by Vpro is good as per the dealer.

Dealer expects more of sales promotional activities and good service

from the company

The company does not use online and tele. Promotional activities.

Customer like discount offers.

Many customers do not know about company as it is 5 years old

company.

The awareness a about the product is very less among people as most of

the product are recently launched.



Suggestions

It is suggested that the company should increase their advertising, newspaper

and sales promotion like discount offer, coupons etc.

The company should also find out ways to decrease their price so that they

can compete with its competitors.

They should give more sales promotional service to the dealers so that they

are happy with the company and ultimately boost up the sales.

The company should all so focus Original equipment (OE) fitments because

it has a downward trend in the past years.

It is also suggested that the company should arrange awareness programs

regarding horns so that customers can know about it and can buy it on the

next purchases.



Conclusion

From the study conducted it can be concluded that the sales promotional activity of

Vpro Company is minimal in the market as the company came into existence

around 4 years ago. Customer are not aware of sales promotional activity,

company should try to advertise about its product and also sales promotion activity

in order to increase sales volume. The recommendations have been conveyed to the

company.



Questionnaire



QUESTIONNAIRE

Name:

1. Which company horn you are using for your vehicles.

Roots Minda

Vpro Bosch

Varroc

2. Which is your priority while purchasing a new horn? (rank them)

Price Quality Brand name

Durability feature comfort

3. What advantages you expect from using a particular horn.

Advantage Important Neutral Not Important

Sound Level

Brand

Price

4. Do you seek information before making purchases?

Yes No



5. If yes, from where you gather your information.

TV advertising News paper

Friends Reference

Internet Any other (specify)

6. Have you heard about Vpro horn?

Yes No

7. How would you rank the Vpro horn?

Very Good Good Satisfactory Poor

Price

Quality

Sound

8. How do you compare Vpro with its competitors?

Excellent Good

Ok Poor

9. Have you seen the Vpro advertising?

Yes No



10. If yes, from where.

TV Magazine

Newspaper hoarding

Wall Painting

11. What type of sales promotional activity do you prefer with Vpro Product?

Discount Gift

Coupons Offers

12. What do you think about sales promotion activity given by Vpro?

Very Good Good

Satisfactory Poor

13. What are the factors that you expect from Vpro to promote their products?

Promotional scheme sales follow-up

Service Credit Facility

14. Which factor enables you to be the dealer of Vpro product?

Promotional scheme Quality

Company policy Margin



15. How long you are dealing with Vpro product?

1-2 years 2-3 years

3-4 years above 4 years

16. What do you feel about Quality of Vpro product?

Very Good Good

Satisfactory Poor

17. What do you feel about credit period given by Vpro?

Very Good Good

Satisfactory Poor

18. What do you feel about the price of Vpro product?

Very High High

Average Low

19. Are you dealing with other companies?

Yes No

If yes, specify



20. Do you any complaints about Vpro product?

Yes No

If yes specify,

21. Do you any suggestion to improve the quality of Vpro product?

Yes No

If yes, specify,

22. What do you feel about after sales service given by Vpro?

Highly satisfied Satisfied

Moderate Dissatisfied



BIBLIOGRAPHY



BIBLIOGRAPHY

BOOK REFERRED:

Marketing Research Measurements & Method by Donald S. Tull and Del I.

Hawkins

WEBSITE REFERRED

www.wikipedia.org

www.automobileindustry.com

www.hornindusty.com

http://www.wikipedia.org/

http://www.automobileindustry.com/

http://www.hornindusty.com/

a study on sales promotion · promotion is a helping function designed to make all other marketing...

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