akshay suzuki winter project

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PROJECT TITLE

A MARKET STUDY ON SALES PROMOTION

AT AKSHAY SUZUKI AUTOMOBILES PVT LTD

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CONTENTS

Page no:

CHAPTER-I

INTRODUCTION 03

Need for the study

Objectives of the study

Research methodology

Scope of the study

Limitations of the study

CHAPTER-II 06

COMPANY PROFILE

CHAPTER-III 15

LITERATURE REVIEW

QUESTIONNAIRE 37

CHAPTER-IV 38

DATA ANALYSIS

CHAPTER-V 56

FINDINGS , CONCLUSIONS & SUGGETIONS

BIBLIOGRAPHY

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CHAPTER-I

INTRODUCTION

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INTRODUCTION

NEED FOR THE STUDY

This particular topic is chosen because every organization required sales promotion

and distribution to promote their product and services. Sales promotions and

distribution are playing a vital role in today's market. So it is important to know how

far these promotional activities are creating brand awareness in the minds of the

customer and influencing them to go for the products and services and also the need to

increase the quality, creativity and utilization of technology in the distribution and

sales promotions.

OBJECTIVES OF THE STUDY

To find out the opinion of customer about the perfect promotion technique.

To find out the opinion of the customer on the subject, sales promotion.

To find out the ways to promote the product so that it reaches the high

standards.

To know how well the product SUZUKI is doing well in the market.

To know how well the product SUZUKI is withstanding on their words, which

makes it to increase the sales.

To determine the share of the SUZUKI in two-wheeler by directly questioning

the customer.

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RESEARCH METHODOLOGY

1. DEFINING THE PROBLEM

This involves developing and understanding of the problem. The research need not be

undertaken only for a problem but also for opportunities and this study an attempt has

been made to understand Sales Promotion towards SUZUKI Motor Company.

2. DATA COLLECTION & PROCESSING

The data has to be collected by the methods predetermined; the primary data has been

collected through well designed questionnaire and personal interviews. Secondary

data is collected through various books i.e Marketing.

3. SOURCES OF DATA

The data has been collected from two sources i.e primary & secondary data.

a) Primary Source

This is through a well designed questionnaire.

b) Secondary Source

The secondary source was collected from the profile of the organization, catalogues

and various books.

SCOPE OF THE STUDY

The scope of the study is confined to all the customers of SUZUKI Company.

LIMITATIONS OF THE STUDY

The limitations of the study are restricted within the south and western Mumbai.

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CHAPTER-II

COMPANYPROFILE

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COMPANY PROFILE

Suzuki Motorcycle India Pvt., Ltd. engages in manufacturing two wheelers. The

companys products include motorcycles and scooters. It offers its products through a

network of dealers. The company was incorporated in 1997 and is based in Gurgaon,

India. Suzuki Motorcycle India Pvt., Ltd. operates as the subsidiary of Suzuki Motor

Corp.Suzuki Motor Corporation (SMC), a global giant of motorcycle manufacturing is

headquartered in Japan. It holds major stake in its Indian subsidiary, Suzuki

Motorcycle India Private Limited (SMIL). SMIL was set up after Suzuki's re-entry

into the Indian two-wheeler market after it severed ties with partner TVS in 2000-01.

Suzuki was then the technology provider in the erstwhile joint venture company TVS

Suzuki. Suzuki Motorcycle India Pvt Ltd (SMIPL) is the latest entry into the already

crowded Indian two-wheeler segment with players like Hero Honda, Bajaj Auto,

Honda, and TVS. SMIPL have started their Indian operations with a 125-cc mass-

market motorcycle. It has made an initial investment of Rs. 200 crores to start their

Indian operations. Company sources have revealed that Suzuki would follow up this

125cc bike with a high performance 150-cc sibling sometime next year. And for the

budget segment, another 100cc bike is expected in the first quarter of 2006. Mass

market is the initial aim with plans to enter all the segments rapidly. They have their

facilities located in Gurgaon. Suzuki had launched bike by diwali, which is the

auspicious time for buying a new vehicle in Indian families. Their setup in Gurgaon

has the capabilities of manufacturing one lakh motorcycles and they are ready to step

that up massively if the situation arises. They already have setup 40 dealerships

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around the country and are going to establish 4,000-5,000 sq.ft showroom and service

stations to provide services to the customers.

The parent company happens to be one of the largest manufacturers of two wheelers

in the world with more than 20 lakh bikes sold per annum. They are popular for their

range of high performance road machines, lightweight super bikes, dirt bikes, street

bikes, and motocross and fun bikes globally.

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MISSION OF SUZUKI

The core philosophy of SUZUKI is to provide VALUE-PACKED PRODUCTS.

Since the founding of SUZUKI Motor Corporation, the Organizations Endeavour has

always been to provide VALUE-PACKED PRODUCTS as one of the

manufacturing philosophies.

SUZUKI believes that VALUE-PACKED PRODUCTS come from the effort to

carry out Product development from customers point of view. This policy has been in

effect since Companys inception and has helped the Organization to meet customers

needs. As a result, Suzukis Products have become well received throughout the

World.

SUZUKI is fully committed to create Products that meet customers demand by

utilizing its dynamic, long-nurtured technological advantage coupled with its fresh

and active human resources.

Develop products of superior value by focusing on the customers

Establish a refreshing and innovative company through teamwork

Strive for individual excellence through continuous improvement

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AKSHAY SUZUKI

The Akshay Suzuki Show room has i t s separate serv ice center.Here

Akshay Suzuki also have a latest service center with all semi-automatic

instruments. I t maintains a unique and regular checking of each and

every bike to increase a satisfaction level of the customers.

Akshay Suzuki str ict ly watch and try to lesser the t ime of a customer

while they give bike in to service. Mostly Customer when come to give

his bikes in service, the service procedure of the showroom is very less

and smallest so that customer will free within 5 Minutes.

AKSHAY SUZUKI SELLING SCHEME & RESULT:

Sel ling sch eme i s a Dealers Scheme t ha t i s u se fu l to a tt ract the

customer towards the showroom to purchase new bike. This all selling

sch eme p ro vided to the cus to mer i s w ithin Rs.2000 . Such Sell ing

Scheme are:

RTO Free

Insurance Free

Petrol Free Up to some K.M or some Rupees.

Reference Sales

DSS (Door Sales Service)

Exchange (It is a Major tool of Scheme/Conversi on)

SELLING OF SHOW ROOM:

Every showrooms goal is to increase the sales. The Akshay Suzuki

has a great sales of b ike through providing different scheme, faci l i ty

and services to the customer. The Following figures are approximate:

Daily 15 vehicles

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Monthly 450 Vehicles

Yearly 13500 Vehicles.

The range of prices for SUZUKI two wheelers bikes starts from 47000 to

67000/-.

Akshay Suzuki offers Exchange Mela of bikes for two wheelers to satisfy

the customer convenience of various two-wheelers. It also offers test ride.

The registration of the two wheelers is done by the agents who are in touch

with Akshay Suzuki.

It also provides Two-Wheeler loans from respective banks like HDFC

for the customer convenience with lowest rate of interest rate of

payment.

The rate of interest charged on customer will depend on the amount he paid

and loan period.

(a) For employee 12% per annum.

(b) For business person 12% or 12.5% per annum.

Akshay Suzukigenerate various sales reports

1. Weekly sales reports

2. Monthly sales reports [ 1 -31st ]

3. Mid week sales report [from Friday to Tuesday]

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Sales are likely to be increased after the financial year i.e. after the budget of

every year is announced. December is the off season for sales and percentage

of sales is more for motor bikes.

Details about the Two-Wheelers

All SUZUKI Two-Wheeler motors are manufactured with pure Indian

Technology with not foreign collaboration. The main manufacturing unit of

SUZUKI Motors is located in Gurgaon (Haryana).

The maintenance cost of SUZUKI two wheeler is zero and the cost of

spare parts is very less when compare with other two wheeler spare parts.

The main competitors of SUZUKI two wheelers are the two wheelers from the

Hero Honda. The minimum warranty of engine is two years.

SUZUKI two wheeler are manufactured with the CC & BHP.

BHP - Break Horse Power

CC - Centrifugal Force of Engine

RMP - Revolution per Minute

Details of Work Shop (Service Department)

The workshop or service department has the following

Customer Lounge:

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Customer lounge is a place where to complete the customer are asked to wait for

this service to entertain the customer the administration had provided Television

and newspapers.

Supervisor cabin:

There is one supervisor who is the head of the service department .He looks after

the whole service department and is responsible for preparing the job card.

Engine Room:

There is a separate cabin called engine room for the repair room for the repair

works of the engine.

Water Room:

There is a separate block to wash the vehicles .A total of 30-40 vehicles are

serviced here.

Mechanics:

There are total of 8 automatic benches for service with 4 senior mechanics

who are well trained.

Job Card:

Job Card contains the details of the vehicle like, engine number, model, customer,

problem, amount of service, amount for spare parts, date and time of delivery.

Spare Parts:

A well versed spare parts block contains different racks for different models of

Vehicles.

Go down:

There is also one huge Go down which has the capacity of putting a maximum of 150

vehicles.

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CHAPTER-III

LITERATURE REVIEW

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LITERATURE REVIEW

Sales Promotions

Sales Promotions consist of many devices aimed at generating active Customer

response within a short period of time. Interestingly, most of the effort has been

receiving an increasingly large share of the advertising/Promotion budget, particularly

for Promotion oriented toward the trade.

Coupons and Promotions play a large role on the web as well. Over 50

percent of both first time and repeat buyers were influenced by either coupons

or free shipping. Promotion competes with advertising for budget it also

provides a different approach to influencing sales. In the case of advertising, the

basic approach is to create or increase a desire on the part of the Customer for

the product itself. In contrast, most Promotions implicitly assume the level of

desire for the product is fixed and try to "close the deal " by providing incentives to

purchase.

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This is, of course, an oversimplification. A" get them while supplies last" ad focuses

on immediate response, and Promotions, Involving free samples aim at generating

repeat business. Nonetheless, Promotions, many of which involve temporary price

reductions, are seen as a form of marketing effort that is more aggressive and oriented

toward immediate results. In reality, one if the few ways product managers can obtain

a short run change in sales or market share is to use sales Promotion activities.

In general Promotion falls in to three main categories:

1. Final Customer Promotion

2. Manufacturer Promotion to the channels or Trade Promotion.

3. Channel originated Promotion, or Retailer Promotion.

Final Customer Promotion comes directly to the Customer from the manufacturer.

Trade Promotion, in contrast, is directed at intermediate channels of distribution in an

attempt both to get them to buy more of a product and to commit their own effort to

"pushing" the product through the nest channel and ultimately to the consumer.

Channel-originated Promotions are run by the channel itself to either the next channel

in the distribution chain or to final Customers.

For consumer packaged goods sold through supermarkets, retailer Promotions are an

especially visible form of Promotions. Displays, feature advertising, and price deals

(price cuts, free merchandise, and retailer-issued coupons) all affect sales and profits

and either augment or detract from manufacturers direct Customer Promotions. In

general, the purpose of channel Promotions is to increase sales pf all products to the

Customer.

Promotion objectives and programs may be gathering offensive, or defensive.

Offensive Promotion attempt to gain an advantage through exclusively: being the only

company to offer a particular Promotion or level of Promotion support. In most

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markets, however, competitors quickly match Promotions. On top of that, in some

areas, notably consumer packaged goods; the channels have become sufficiently

powerful to both demand and schedule Promotions. The result is that companies,

including those with household brand names and dominant market shares, are

promoting due more to a perceived necessity to match competition and satisfy the

channels than to a conviction that Promotions benefit the manufacturer.

Many types of consumer products, service and industrial products use sales promotion

devices extensively. Short-term price discounts to consumers are very common in

industrial markets. In addition, farm equipment and office

Products manufacturers, for example, frequently target channel members for

promotions which may or may not passed on to the customers.

Simplified Channel and Promotion Structure

PROMOTIOM OBJECTIVES

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Final Customer Promotions

Final Customer Promotion, at least for existing or mature products, typically

takes a short-run view. Even when the focus as long-run, such as to generate trial,

the operational objective of most Promotion is to generate immediate response

in the form of sales. The possible advertising objective range from generating

awareness to increasing product understanding to improving attitude towards

purchase. In principle, Promotion can be directed toward any of those goals.

Customer Promotion Objectives

Objective Programming Typical

I .Long-run(relationship building)

A. Awareness enhancement

B. Image enhancement

Sweepstakes, contest, tie-ins

SponsorshipsII. Short-run (transactional)

A. Current Customers

1. Buy More

2. Be more loyal

3. Buy now

B. Occasional Customers(deal

prone, brand switchers)

Capture next purchase

C. Non Customers

Volume discounts/special value

packages

Coupons, premiums. Frequent buyer

Programs Rebates, coupons

Coupons, display, rebates

Trial sizes sampling

If awareness is the problem, a company can run a Promotion such as a game or

sweepstakes designed to increase awareness of a product rather than to increase

immediate sales. Similarly, a company can run a tie-in Promotion that may, in

addition to raising current sales, have a residual positive impact on brand image.

Such relationship-building motives, however, account for only a small percentage

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of the Promotion. Once awareness of the product is met then to improve the sales,

is it recommended that to go for the promotion objectives that are listed above.

By far the most common objective of a consumer Promotion is a short-run goal to

generate more transactions in a short period of time. The objective are implemented in

two ways, first we need to specify from what level sales should increase. The easiest

benchmark is last year or last period; the more difficult measure, but one from which

the true success of the program should be gauged, is what sales would be absent the

Promotion Second, we must select the target Customer and define desired behavior.

Basically, you ca focus on getting current Customers to buy more, capturing

occasional but not loyal Customers, or generating sales from current Non Customers.

Many Promotions focus on current Customers, attempting to get them to buy more

through a -volume discount, to be more loyal, or to accelerate their purchases and buy

sooner. Attracting occasional Customers, typically through temporary price cuts such

as coupons and rebates, is effective but also expensive. This is not only produces

lower margins on the sales to occasional Customers but may also lower margins on

sales that would have been made in the absence of the Promotion to either occasional

or regular Customers. Hence a major concern ids how to target Promotions o

competitor's Customer alone. Promotions to non Customers are generally used when a

product is new to generate trial. In a sense, targeting non Customers implies a long-

run relationship-building objective. In addition to their sales-generating role,

selectively distributed Promotions provide a legal means of price discrimination.

Special coupons may act as price discriminators as much as sales promoters.

Similarly, different sale price can be offered to target groups in catalogs based on their

past purchasing behavior.

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TRADE PROMOTIONS

The objectives of trade Promotions basically fall into three main categories.

Objective Typical Programs

Transactional: increase stocking levels Volume allowances Financing terms

Discount/price cuts Slotting allowances

Transactional: increase sales efforts Advertising Display allowances Premiums

allowances Contests

Relationship building Free goods

Relationship building

The first category focuses on getting the trade to buy or stock the product in greater

quantities by offering various financial incentives. The second category tries to

increase the level of trade support given to the product by means other than

increasing their inventories. A variety of allowances and direct incentives relate to this

task. The final set of objectives involves relationship building, a longer-term

objective. One example of relationship-building is t give extra product to a channel

with no explicit strings attached.

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An important type of trade Promotion involves participating in trade shows. One

major purpose of trade shows is to entice current and potential channel

members to carry a product. Trade shows are a great business in their own right.

Participants have multiple objectives, including image enhancement, new-product

introduction, and competitor monitoring.

Promotion Budgeting Total Advertising and Promotion Budget

Seven factors have been found to effect the total budget for advertising and sales

Promotion for manufactured products .Companies spend more on Promotion and

advertising relative to sales when

1. The product is relatively standardized.

2. There are many end users.

3. The typical purchase amount is small

4. Sales are made through channel intermediate than directly to end

users.

5. The product is premium priced.

6. The product has a high contribution margin.

7. The product or service has a small market share.

ADVERTISING AND PROMOTION

Several factors affect this allocation decision. First, the total amount of resources

available has a major impact. If the marketing budget is small, extensive media

advertising is usually not worthwhile unless the target market is local and can be

reached by media such as radio and newspapers, because advertising usually needs a

minimum or threshold amount to have any impact. Beneath the threshold value, the

money is virtually wasted. In such cases, spending the budget on sales Promotion

results in a greater market impact than advertising. Second, Customer factors affect

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allocation decisions. One relevant aspect of Customer behavior is the degree of brand

loyalty. Promotion money spent on a product or service exhibiting high levels of

loyally rewards primarily existing Customers. Although this may be what the product

manager wants, it is usually not the best way to spend money. If Customer's are not

very loyal, the product manager should try to understand if their behavior is endemic

to the category; if so, there may be an opportunity to attract brand switchers with

Promotions. It is also possible, however that the product manager has created non-

loyal Customers through frequent, price-based Promotions, and thus all that happens

is a temporary swapping of Customers.

A second relevant aspect of consumer behavior is the type of decision required of

them. If the product is complex and therefore requires a fair amount of information

processing, more should be spent on advertising because it is better communications

device. Alternatively, most sales promotion amount is spent on product categories in

which decision making is routine and involves little processing of information about

the product.

A third factor affecting allocation decisions is whether advertising and promotion

amount high the unique aspects of the product, consumer franchise building (CFB)

aspects. CFB activities are those that build brand equity, including advertising,

sampling, coupon, and product demonstrations. Non-CFB activities focus on price

alone and include trade promotions, short-term price deals, and refunds.

TYPES OF FINAL CUSTOMER PROMOTIONS

Deciding on which Promotion element to employ in many ways parallels the media

selection process in advertising

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CONSUMER PROMOTIONS

I. Product based

A. Additional volume/bonus pack

B. Samples

1. Central location

2. Direct(e.g., mail)

3. Attachment (in-/-on-pack)

4. Media placed (clip-and-send coupons)

II. Price based

A. Sale price

B. Coupons

1. Central location

2. Direct (mail)

3. Attachment (in-/-on-pack)

4. In media (e.g., websites)

C. Refind/rebates

D. Financing

E. Frequent

III. Premiums

IV. Place-based Promotions(physical '1;splays; Internet site based)

V. Games (sweepstakes, contests)

PRODUCT-BASED PROMOTIONS

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One obvious category of Promotions is to give away the product itself. Extra volume

packages bare common in consumer products. Even more dramatic are completely

free products. Coupons for free goods show up in the mail, on or in packages of the

good, or in media vehicles. Computer hardware and software companies often give

free copies of their products to select Customers as "beta" test sites to help get any

bugs out and stimulate early word of mouth. Sampling has the obvious benefit of

stimulating product trial because it gives the shortcomings. First, it is very expensive.

Second, it may not target the right potential Customers; people who distribute free

samples in supermarkets or on street corners are not very discriminating about to

whom they give the product.

PRICED-BASED PROMOTIONS

Another obvious type of Promotion involves price. The use of sale price is understated

if we describe them as being "widespread". Unfortunately, most short-term price

reductions are not narrowly targeted because all buyers, including extremely brand-

loyal ones, have access to in-store price reductions.

More targeted price reductions that require at least some effort on the part of the

consumer involve coupons. Coupons are one of the very few ways to legally

implement price discrimination, that is, charge different prices to segments with

different sensitivities to price by delivering targeted coupons. The use of attachment

coupons allows a more focused price cut, though outright theft and trading of coupons

are common As just noted one advantage of coupons is that they can be delivered by

mail, at the cash register, or even through the Internet to carefully targeted audiences.

In addition, because they normally have to be cut out and physically carried to the

point of transactions, coupons require more commitment to purchase the product, and

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thus may engender more repeat purchases. They are also flexible because they can be

designated for larger package sizes, a now flavor extension, and the like.

Other, price-based consumer Promotion is also options. Refunds and rebates are

common and effective, though the long-run effects may be negative. Frequent user

programs such as those offered by supermarkets, sporting goods stores etc, are useful

for encouraging brand loyalty and allow consumers to buy products at a discount after

they have accumulated a sufficient number of points.

OTHER CUSTOMER PROMOTIONS

In addition to product - and price-based Promotions, other elements of the marketing

mix can be used to meet company objectives. Point-of-purchase displays are common;

notice the checkout and end-of-aisle displays at any supermarket. One popular form of

place-based Promotion is the exposition at which manufacturers congregate to display

and sell their wares. Another inducement to purchase is free service. In addition,

various premiums have proven effective.

TYPES OF TRADE PROMOTIONS:

Trade Promotions are directed not to the final Customer but to the channels through

which the goods are sold. Like consumer Promotions, they can be broken into five

categories

Trade Promotions

I. Product based

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A. Free goods

B. Consignment/returns policy

II. Price based

A. Buying allowances

B. Financial terms

III Place based

A. Slotting allowances

B. Display allowances

C. Warehousing/delivery assistance

IV Advertising and promotion based

A. Co-op advertising

B. Selling aids

C. Co-op selling

V Sales based

A. Bonuses and incentives

B. Contents and prizes

Product-based Promotions include free goods and generous returns policies.

Returns policies allow the channel to return unsold merchandise for a full or partial

refund, reducing the risk of carrying the product. Price deals include various volume

discounts and allowances, as well as financing terms such as long period of time

before payment is due or below-market interest rates.

Place-based allowances are especially for consumer packaged goods. Slotting

allowances, which are basically payments for placing a product on the shelf, have

become increasingly important as power has shifted from manufacturers to retailers.

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These fees charged to manufactures have had a negative effect on the number of

competitors in many product categories and have been particularly hard on small

companies, for which the fees can become prohibitive. Display allowances

compensate retailers for prominent display of goods.

Other Promotion involve reducing inventory and transportation costs by either

warehousing the goods for the channel or paying all or part of delivery charges.

Providing selling assistance is also common. In addition to selling aids companies

often provide cooperative advertising, sharing the channel's advertising expense.

EVALUATING CUSTOMER PROMOTIONS

The easiest approach to evaluating Customer Promotion is to simply look at

incremental results during the period of Promotion. This method provides a useful

starting point, but may lead to an overestimate of the benefit of Promotion because it

ignores both where the sales come from and the long-term consequences of

Promotion. As with evaluating advertising effects, a standard approach to measuring

the impact of sales Promotion is tracking.

EVALUATING SALES PROMOTION: TRACKING STUDIES

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As shown in above picture of simple tracking approach with point A on horizontal

axis representing the time when the Promotion say, a price reduction -is given to end

consumers. Tracking studies such as these are used frequently because the effects of

sales Promotion often show up quickly. Unfortunately, product managers tend to

look at the shaded above point a as shown. The simple analysis could be made is the

gain could be of fset by the crossha tched "dip" at point B, representing the

possibility that consumers have increased their inventories at home, thus negating

the need to rebuy soon.

The gain must be evaluated relative to a base amount: the amount of sales that would

have been generated had the Promotion not to run. This base line calculation is some

what difficult because it will change by the time.

The analysis does not account for other factors in the marketplace, including

actions by both the product in question and the competition.

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Product managers must carefully examine point C. The point at which sales seem to

return to "normal"; it could be higher than the base for some period of time,

representing a positive long-run effect.

If products have several Promotions running simultaneously, it is difficult to separate

the effects of one Promotion from another.

SHORT-RUN EVALUATION

Sales increase from Promotions may be generated by accelerating purchasing by loyal

buyers. Many coupon redeemers, May be Customers who would have bought the

product anyway and simply used the coupon as "found of money" or, at best, bought

the products somewhat sooner than they would have in the absence of a Promotion.

Basically, a coupon can have several incremental impacts:

1. Accelerated regular purchasethat is, regular buyers of the brand

simply buy sooner

2. Accelerated captured purchasespurchases that neither would have

bought at the time nor bought the promoted brand but are persuaded to

do both by the Promotion.

3. Uncelebrated regular purchasesregular buyers who use the coupon

as a "bonus" price cut.

4. Uncelebrated regular purchasespurchases of other brands who

switch to the promoted brand because of the Promotion.

Obviously, categories 2 and 4 are pluses and category 1 also represents incremental

sales, albeit borrowed ones. Category 3 is basically a negative. Category 1 is

potentially but not necessarily negative. If subsequent sales are depressed as a result

of increased inventory, there is no benefit and a clear cost. Of course, one possible

benefit of Promotion is that "captured" buyers will remain loyal and repeat purchase

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the promoted brand on a subsequent purchase occasion. It is possible that Promotion

increases category purchase quantity, either with or without depressing future

purchase quantity. Interestingly, considerable evidence seems to suggest that

increased quantity due to Promotion is neither preceded nor fallowed by decreased

quantity purchased.

To assess the value of Promotion, then it is necessary to estimate both the source of

additional sales and its overall magnitude. In addition, the profit consequences of each

need to be considered. Some Promotions have lower redemption rates than others that

are freestanding insert coupons versus on-pack or register a price discount, which

lessen their negative impact on profit margins but at the same time decreases their

impact on quantity. The main point here is that it is possible to estimate the impact of

a Promotion through systematic analysis and that the results of such analysis are often

quite sobering.

In addition to the direct effects of manufacturer Promotions on Customer, the

Promotion has an indirect impact on channel (retailer) behavior. Notice that a major

factor affecting the profitability of Promotions is whether or not a good is easily

stockpiled. Perishable goods and services cannot be stockpiled and hence paper towel

Promotions tend to result in stockpiling, and, if Promotion is matched by competitors,

actually lead to lower profits. In contrast, Promotions on underused services or

perishable goods may produce increasing profits.

LONG-RUN CONCERNS

Promotion also has two important long-run impacts. First is the impact of Promotion

on Customer perceptions of the brand. Brand bought on Promotion may be seen as

lower in quality and, the extreme, something it make sense to buy only on deal. A

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recent study suggests when long-run negative impacts are considered, the total

positive impact of a Promotion is only one-third its short-run impact.

COMPETITIVE REACTION

There is also concern about the impact of Promotions on competitors. Most markets

are oligopolies, and hence decisions need to take likely competitive reactions into

account. Not surprisingly competitors often match Promotions quickly, thus negating

many of the possible benefits while increasing costs. A Promotion spiral can ensue

with great benefit to Customers and harm to companies profits.

PROMOTION EFFECTS

Scanner data have been used extensively to assess the effects of Promotion on buying

behavior. We know consumers use coupons extensively. Further, while some

consumers purchase at regular intervals, some accelerate purchases and stockpile

goods in response to Promotions.

Given the prevalence of scanner data for supermarket and drugstore products, it is not

surprising that a large number of models have been developed to use them to asses the

impact of marketing variables such as Promotion or assuming primary demand

(market size) is constant on share. The models generally assess the value of each

brand to an individual Customer as a function of several components:

1. The inherent value of a brand-size combination. This is either treated holistically or

further decomposed into product attributes.

2. The non-product marketing mix elements: price, Promotion, the amount

of the Promotion, and advertising.

3. Carryover effects of past purchases.

4. Customer loyalty or inertia

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Scanner data are not a perfect means for assessing the impact of Promotions. They

generally include only household-level data, do not cover purchases at non-scanned

stores, and exclude many potential influences on sales. They are, however, a useful

and unobtrusive means for evaluating both natural and controlled experiments.

Scanner data are increasingly being used to compare different Promotions and provide

directional guidance to managers.

The impact of Promotion to the most is based on analysis of consumers packaged

goods and here are some of the analyses made:

1. Temporary retail price reductions substantially increase sales.

2. Higher market share brands are deal elastic

3. The frequency of deals changes the consumer's reference price.

4. The greater the frequency of deals, the lower the height of the deal.

5. Cross-Promotional effects are asymmetric, and promoting higher-quality

brands affects weaker brands disproportionately.

6. Retailers pass through less than 100 percent of trade deals

7. Display and feature advertising have strong effect on item sales.

8. Advertised Promotions can result in increased store traffic.

9. Promotional affect sales in complementary and competitive categories.

EVALUATING TRADE PROMOTIONS

The results of earlier has shown that many users of consumer Promotion would have

bought the product anyway, so they simply pocket the value of the Promotion stock

up at the low price. A similar problem exists for trade Promotions, the issue of "gray

markets". Gray markets involve authorized dealers or retailers that buy the product

from the producer and then resell it to other, unauthorized dealers. This practice is

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common when a company offers a volume discount and multiple dealers in effect pool

their orders to obtain it. Various Internet-enabled consortia have sprung up to take

advantage of these discounts.

Further, although many trade Promotions involve implied cooperation on the part of

the channel, these provisions are hard to monitor and enforce. Put differently.

Although the manufacturer's objectives are best served when Promotions are passed

through to consumers, channels' profits are often increased by retaining all or a

substantial amount of a Promotion allowances as profit. One way to evaluate trade

Promotions is as a necessary cost of doing business, an explicit recognition of the

growing power of mass merchandisers in consumer packaged goods marketing.

Trade Promotion now accounts for more of the Promotion budget than either

advertising or consumer Promotions. One reason is a key to increased volume.

Trade Promotion consisted of three basic typesoff-invoice discounts, sales drive

discounts, and special fall premiumsand their effects were treated separately. The

model included an "end-of-deal" variable to account for orders placed during the deal

period but not shipped until the next period. The sales drive consisted of a percentage

payment to channel when it sold units to the retailer. The special fall premium was

direct payment to the Manufacturer/s own sales force. To remove the impact of the

direction sales force were headed on their own the model also used a time trend term.

A different approach uses an expert system style modeling method (promoter) based

on the results of many past Promotions. This approach begins by developing a baseline

sales level based on trend and seasonality plus any unusual factors that may have

affected sales. Basically, a baseline estimation procedure relies on periods when

Promotion is zero. Incremental sales are then computed as the difference between

baseline and actual sales. Thus, in contrast to the multiple-equation approach

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PROMOTOR does not asses the process by which a Promotion works; rather it

concentrates on estimating its magnitude. The general findings from PROMOTOR are

the following:

Trade deals tend to have lower "pass-through"; that is, savings by the retailer are

passed along to consumers less than manufacturers hope. Retailers tend to forward buy

when they offered Promotions, allowing them to stock up and ultimately making

the Promotion unprofitable for the manufacturer. The effectiveness of trade deals

varies greatly across sizes of products and markets.

QUESTIONNAIRE

1. What Bike do you hold at present?

a) Brand b) Model c) Satisfy d) Mileage

2. wich promotion technique would prefer for increasing of sales?

a) Advertising b) Exchange Mela c) Scheme Coupons d) Others

3. Do you think Exchange Mela's will attract you in buying the Bike?

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a) Maximum b) Moderate c) Minimum d) Nil

4. Do you think Advertisement with Star amenities will attract you to buy the Bike?


5. Are you satisfied with the maintenance cost of'your Bike?


6. Do you think that SUZUKI Motors Company is following the above techniques for

increasing the sales and promotion of the brand?

a) Maximum I)) Moderate e) Minimum d) Nil

7. Do you feel that SUZUKI Brand Motors arc increasing their sales in the market?


8. Do you think that features of SUZUKI motors matches with the price of the Bike?


9. Do you have any Complaint about your Bike in terms of following?


10. Put the appropriate alphabet in the space available.

a)Excellent b)Good c) Moderate d) Less e) Nil

11. If you arc already owner of SUZUKI vehicle/hike, are you fully satisfied?


12. Would you like to buy SUZUKI two-wheeler motor in future? (Yes/no)

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CHAPTER-IV

DATA ANALYSIS

DATA ANALYSIS

1) Which promotion techniques would you prefer for your purchase?

I) Newspaper Advertisement

Options Maximum Moderate Minimum Nil

Responses 53 71 36 22

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Percentage 29% 39% 20% 12%

0%

10%

20%

30%

40%

50%

Maxim

Moder

Minim

Nil

potions

Percen

INTERPRETATION:

29% of the total customers have responded to the maximum extent that promotion

technique Newspaper advertisement is good.

39% of the total customers have responded that the promotion technique Newspaper

Advertisement is moderate.

20% of the total customers have responded that Newspaper Advertisement

Promotion technique is to the level of minimum. 12% of the total customers have

responded that News paper advertisement is not at all a promotion technique.


II) Exchange Mela

Options Responses Maximum

87

Moderate

54

Minimum

21

Nil

20

Percentage 48% 30% 12% 11%

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0%

10%

20%

30%

40%

50%

60%

Maxim

Mode

Minim

Ni

options

Pe

rce

INTERPRETATION


technique Exchange Mela is good. 30% of the total customers have responded that

the promotion technique Exchange Mela is moderate. 12% of the total customers

have responded that Promotion technique Exchange Mela is to the level of minimum.

11% of the total customers have responded that Exchange Mela is not at all a

promotion technique,


III) Scheme Coupons



Percentage 38% 34% 16% 12%

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0%

10%

20%

30%

40%

Maxim

Mod

e

Minim

Nil

options

Pr

ecen

0%

10%

20%

30%

40%

Maxim

Mod

er

Minim

Nil

options

Precen

INTERPRETATION


technique Scheme Coupons is good.

34% of the total customers have responded that the promotion technique Scheme

Coupons is moderate.

16% of the total customers have responded that Promotion technique Scheme

Coupons is to the level of minimum.

12% of the total customers have responded that Scheme Coupons is not at all a

promotion technique.


IV) Others



Percentage 22% 18% 26% 34%

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INTERPRETATION

22% of the total customers have responded to the maximum extent that Other

promotion techniques are good.

18% of the total customers have responded that the Otherpromotion techniques arc

moderate,

26% of the total customers have responded that Other Promotion techniques are to

the level of minimum.

34% of the total customers have responded not at all to the Other Promotion

techniques.

05) Do you think that Exchange Mela's will attract you in buying bike?

Options Maximum Moderate Mini in u in Nil


Percentage 33% 15% 48% 4%

0%

10%

20%

30%

40%

50%

60%

Maxim

Moder

Minim

Nil

options

Precent

INTERPRETATION

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33% of the total customers have responded that exchange mela's to the maximum

extent attract them to buy the bike.

15% of the total customers have responded moderately that exchange mela's are a

good source of buying new one's.

48% of the total customers have responded that exchange mela's will attract them

to buy the new to minimum.

4% of the total customers have responded that exchange mela's will have no effect on

them.

06) Do you think that Advertisement with Star amenities will attract you to buy the

Bike?




0%

10%

20%

30%

40%

50%

Maxim

Mode

Minim

Ni

options

Pre

ce

INTERPRETATION

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4% of the total customers have responded that advertisements with star amenities will

attract them to maximum extent.

46% of the total customers have responded that they are

moderately attracted towards purchasing bikes of advertising with star amenities,

42% of the total customers have responded that advertisements with star amenities

will attract them to level of minimum.

8% of the total customers have responded that advertisements with star amenities

will have no effect on them,

07) Are you satisfied with the maintenance cost of your Bike?




0%

10%

20%

30%

40%

50%

Maxim

Mod

er

Minim

Nil

options

Precen

INTERPRETATION

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41% of the total customers have responded that to the maximum extent they have

satisfied with maintenance cost.

44% of the total customers have responded that the maintenance cost of the bike is

moderate.

5% of the total customers have responded that the maintenance cost of the bike is to

the level off minimum,

9% of the total customers have responded that the maintenance cost is very much nil.

08) Are you aware of new SUZUKI brand Two-Wheelers in the Market?




0%

10%

20%30%

40%

50%

60%

Maxim

Mod

er

Minim

Nil

options

Prec

en

INTERPRETATION

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0% of the total customers have responded that to the maximum extent they are aware

of the new models of the SUZUKI bikes.

41% of the total customers have responded that the awareness of the new models of

SUZUKI bikes is moderate.

8% of the total customers have responded that the they are aware of new one's to the

minimum level.

1% of the total customers have responded they arc not aware of the new models of

the SUZUKI bikes

09) Do you think that SUZUKI Motors Company is following the above techniques

for increasing the sales and promotion of the brand?



Percentage 16% 49% 17% 18%

0%

10%

20%

30%

40%

50%

60%

Maxim

Mod

er

Minim

Nil

options

Prec

en

INTERPRETATION

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16% of the total customers have responded that to the maximum extent they are

increasing the sales fallowing above techniques.

49% of the total customers have responded that the SUZUKIto increase sales by

fallowing above promotion techniques is moderate.

17% of (he total customers have responded that SUZUKI, to increase sales by

fallowing above techniques is to the level of minimum.

18% of the total customers have responded they are not at all fallowing above

promotion techniques to increase sales.

10) Do you feel that SUZUKI Brand Motors are increasing their sales in the market?



Percentage 23% 42% i 9% 1 6%

0%

10%

20%

30%

40%

50%

Maxim

Mod

er

Minim

Nil

options

P

recen

INTERPRETATION

23% of the total customers have responded that to the maximum extent SUZUKI are

increasing the sales.

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42% of the total customers have responded that the SUZUKI increasing sales are

moderate.

19% of the total customers have responded that SUZUKI increasing sales is to the

level of minimum.

16% of the total customers have responded they are not at all are increasing the sales.

11) Do you think that features of SUZUKI motors matches with the price of the Bike?



Percentage 22% 43% 19% 1 6%

0%

10%

20%

30%

40%

50%

Maxim

Moder

Minim

u

Nil

options

Precent

INTERPRETATION

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Among total 182 respondents:22% of the total customers have responded that to the

maximum extent SUZUKI features matches with the price of the bike.

43% of the total customers have responded that the SUZUKI features, matches with

the price is to moderate.

19% of the total customers have responded that SUZUKI features matches with the

price are to the level of minimum.

16% of the total customers have responded that SUZUKI features not at all matches

with the price of the bike.

12) Do you have any Complaint about your Bike in terms of the following?



Percentage 20% 44% 20% 16%

0%

5%

10%

15%

20%

25%

Ma

ximu

Moder

Minim

u

Nil

options

Precent

INTERPRETATION

20% of the total customers have responded that to the maximum

extent SUZUKI motors have repairs. 44% of the total customers have responded that

the repairs about SUZUKI motors are moderate.20% of the total customers have

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responded that repairs about SUZUKI bikes are to the minimum level. 16% of the

total customers have responded that SUZUKI motors do not have any repairs.

13) Put the appropriate alphabet in the space available?

Options Excellent Good Moderate Less Nil

SUZUKI 62% 17% 14% 7%

0%

0%

Others 64% 27% 9% 0%

0%

10%20%

30%

40%

50%60%

70%

E

xcell

Goo

M

oder

Les

Nil

Potions

Percen

INTERPRETATION

62% of SUZUKI and 64% of Other Customers have responded for the option

Excellent.

17% of SUZUKI and 27% of Other Customers have responded for the option Good.

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Moderate.

7% of SUZUKI and 0% of Others Customers have opted the options Less.

No customer have opted for nil

14) Style


SUZUKI 45% 36% 15% 4% 0%

Others 53% 24% 22% 0% 0%

0%

10%

20%

30%

40%

50%

60%

Exc

ellen

Goo

Mod

erat

Less

Nil

Potions

Percenta

INTERPRETATION

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Excellent.



Moderate.



15). Comfort


SUZUKI 38% 50% 8% 4% 0%

Others 31% 64% 4% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

E

xcell

Goo

M

oder

Les

Nil

Potions

Percen

INTERPRETATION


Excellent,


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Moderate.

4% of SUZUKI and 0% of Others Customers have opted the option Less.


16 ) Pickup

Options Excellent Good Moderate

10%

less

4%

Nil

SUZUKI 53% . 34% 0%

Others 56% 36% 4% 4% 0%

0%

10%

20%

30%

40%

50%60%

Exc

ellen

Goo

Mod

erat

Less

Nil

Potions

Percenta

INTERPRETATION


Excellent.


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Moderate.



17) Cost Factor


SUZUKI 4% 10% 41% 45% 0%

Others 13% 16% 22% 49% 0%

0

0.1

0.2

0.3

0.4

0.5

0.6

Exc

elle

Goo

Moder

Les

Nil

Potions

Percent

INTERPRETATION


Excellent.

10% of SUZUKI and 16%'of Other Customers have responded for the option Good,

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Moderate.



18) If you are already the owner of SUZUKI bike/vehicle, are you fully satisfied?




Percentege

0

20

40

60

80

Maximum Moderate Minimum Nil

optio

INTERPRETATION

15% of the total customers have responded that to the maximum extent the

performance of the SUZUKI bikes is good.

58% of the total customers have responded that the SUZUKI bikes performance is

moderate.

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20% of the total customers have responded that SUZUKI vehicles performance is to

the level of minimum.

1% of the total customers have responded mat SUZUKI vehicles performance is not

up to the mark.

19) SERVICE AND SPARES




Percentege

0%

20%

40%

60%

80%

Maxim

Moder

Minim

Nil

opti

INTERPRETATION

65% of the total customers have responded that to the maximum extent the service

and spares is good.

15% of the total customers have responded that the SUZUKI bikes service and

spares is moderate.

20% of the total customers have responded that SUZUKI vehicles service and spares

is to the level of minimum.

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1% of the total customers have responded that SUZUKI vehicles spares and spares

are not up to the mark.

20. Would you like to buy SUZUKI two-wheeler motor in future?

Options YES NO

Responses 127 55

Percentage 70% 30%

70%

30%

INTERPRETATION

70% of the total customers have opted for the yes option which implies a greater

proportion of buying the SUZUKI vehicle.

30% of the total customers have opted for no.

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CHAPTER-V

FINDINGS CONCLUSIONS & SUGGETIONS

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FINDINGS

Most of the customers have the opinion that there is no resale value for the

SUZUKI brand two-wheelers in the Market, so there is a need to improve the

resale value of the SUZUKI products.

Brand image plays an important role for retaining the Customers to a particular

brand in the Market. So it is vital to standardize the brand image of the

SUZUKI motorcycles.

Dealers should ensure that more and more servicing centers are available in

the smaller towns.

More style, pickup and mileage products to be manufactured to meet the

satisfaction of the Customer and to retain them to the Brand of SUZUKI.

Small modifications to the existing models can bring enormous.

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CONCLUSIONS

Sales Promotion is an important function of any Organization in todays Market. Sales

Promotion deals with various promotion techniques for improving the Sales and

Brand awareness of SUZUKI Brand two-wheelers.

Knowing the importance of the Sales Promotions in to-days Market, I want to

conclude by saying that the SUZUKI Brand two-wheelers should carry out the various

program's for increasing the Sales of SUZUKI brand two-wheelers in the Market.

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SUGGETIONS

It is advised to stability the Brand name and increase the Mileage of the

bike to attract the middle and lower middle class people.

It is advised to give advertisement in local channel, which may boost the

business in local areas.

Change in the perception of the Customers towards SUZUKI bikes.

It is advised to reduce the price of the spare parts to target the middle and

lower class income people.

Efforts to be made to capture uncovered areas.

It is advised to increase promotional schemes to attract more number of

people free servicing of the vehicles should be carried out effective

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BIBLIOGRAPHY

Principles of Marketing -Kotler Amstrong

Essence of Marketing -Majaro

Basic Marketing -Me Carthy

Product Management -Donald R. Lehman

Internet

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