A study on promtion activities conducted at arpita bajaj, hassan

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.


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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.


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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.”


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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.


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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.


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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.


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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


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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

2.1.2.1 MOTOR CYCLES
The motorcycles segment grew by 28% in terms of sales in 1995, which is
remarkable by all standards.

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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.

2.1.2.2 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.

2.1.2.3 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


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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.

2.1.2.3 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.


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1990 – 91

CHANGING PROFILE OF TWO
WHEELRS INDUSRTY

26%

50% Scooters
Mopeds
Motorcycles
24%

1997 – 98


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37% Scooters
39%
Mopeds

Motorcycles

20%

2.2 COMPANY PROFILE

AN EYE SIGHT ON BAJAJ AUTO LIMITED


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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.


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 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


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 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.


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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


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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


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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


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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%


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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.


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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


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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

Executive V.P President

Purchase Marketing
Sa Sales

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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

Sales Head
Territory Mgr
NationalMgr
Area Mgr TerritoryMgr
National Mgr
Area Mgr TerritoryMgr
National Mgr
Area Mgr National Mgr
TerritoryMgr
Area Mgr

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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

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Senior Manager (HRD)

3 Senior Administrative Assistants


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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.


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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.


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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.


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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.


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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.


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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.


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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.


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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.


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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.


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•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


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2.9.1 STRENGTH


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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


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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.


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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.


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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


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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.


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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.


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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


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• 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.


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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


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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


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• 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.


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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.


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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


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 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


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“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


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• 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


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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


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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


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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


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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


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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


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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.)


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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.)


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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


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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.


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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.


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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


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• 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


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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


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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


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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


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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
Cable advertisement 18
Friends 25
Magazine 34
News paper 23

Chart 5.4.2


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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


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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
Yes 69
No 31

Chart 5.4.4


A study on promtion activities conducted at arpita bajaj, hassan

A study on promtion activities conducted at arpita bajaj, hassan

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