PROJECT TITLE A MARKET STUDY ON SALES PROMOTION AT AKSHAY SUZUKI AUTOMOBILES PVT LTD

CONTENTS
Page no:

CHAPTER-I INTRODUCTION
Need for the study Objectives of the study Research methodology Scope of the study Limitations of the study

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CHAPTER-II COMPANY PROFILE CHAPTER-III LITERATURE REVIEW QUESTIONNAIRE CHAPTER-IV DATA ANALYSIS 37

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15

38

CHAPTER-V FINDINGS , CONCLUSIONS & SUGGETIONS

56

BIBLIOGRAPHY

CHAPTER-I INTRODUCTION

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.

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.

CHAPTER-II COMPANY PROFILE

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 massmarket 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

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.

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

AKSHAY SUZUKI
The Akshay Suzuki Show room has its separate service center.Here Akshay Suzuki also have a latest service center with all semi-automatic instruments. It maintains a unique and regular checking of each and every bike to increase a satisfaction level of the customers. Akshay Suzuki strictly watch and try to lesser the time 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:

Selling scheme is a Dealers Scheme that is useful to attract the customer towards the showroom to purchase new bike. This all selling scheme provided to the customer is within Rs.2000. Such Selling 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/Conversion)

SELLING OF SHOW ROOM: Every showrooms goal is to increase the sales. The Akshay Suzuki has a great sales of bike through providing different scheme, facility 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) (b)

For employee 12% per annum. For business person 12% or 12.5% per annum.

Akshay Suzuki generate various sales reports 1. Weekly sales reports Monthly sales reports [ 1 -31st ] Mid week sales report [from Friday to Tuesday]

2. 3.

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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. Break Horse Power Centrifugal Force of Engine Revolution per Minute

BHP CC -

RMP -

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. 2. 3. Final Customer Promotion Manufacturer Promotion to the channels or Trade Promotion. 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 I .Long-run(relationship building) A. Awareness enhancement B. Image enhancement II. 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 Typical Sweepstakes, contest, tie-ins Sponsorships 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 longrun 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 Transactional: increase sales efforts allowances Relationship building 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. Volume allowances Financing terms

Discount/price cuts Slotting allowances Advertising Display allowances Premiums Contests Free goods

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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. 2. 3. 4. The product is relatively standardized. There are many end users. The typical purchase amount is small Sales are made through channel intermediate than directly to end

users. 5. 6. 7. The product is premium priced. The product has a high contribution margin. 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 nonloyal 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. B. Additional volume/bonus pack Samples 1. 2. 3. 4. Central location Direct(e.g., mail) Attachment (in-/-on-pack) Media placed (clip-and-send coupons)

II.

Price based A. B. Sale price Coupons 1. 2. 3. 4. C. D. E. Central location Direct (mail) Attachment (in-/-on-pack) In media (e.g., websites)

Refind/rebates Financing Frequent

III.

Premiums Place-based Promotions(physical '1;splays; Internet site based) Games (sweepstakes, contests)

IV.
V.

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 brandloyal 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. B. II.

Free goods Consignment/returns policy

Price based A. B. Buying allowances Financial terms

III

Place based A. B. C. Slotting allowances Display allowances Warehousing/delivery assistance

IV

Advertising and promotion based A. B. C. Co-op advertising Selling aids Co-op selling

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 offset by the crosshatched "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. 4. Carryover effects of past purchases. 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. 2. 3. 4. 5. Temporary retail price reductions substantially increase sales. Higher market share brands are deal elastic The frequency of deals changes the consumer's reference price. The greater the frequency of deals, the lower the height of the deal. Cross-Promotional effects are asymmetric, and promoting higher-quality

brands affects weaker brands disproportionately. 6. 7. 8. 9. Retailers pass through less than 100 percent of trade deals Display and feature advertising have strong effect on item sales. Advertised Promotions can result in increased store traffic. 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? a) Maximum b) Moderate c) Minimum d) Nil

5. Are you satisfied with the maintenance cost of'your Bike? a) Maximum b) Moderate c) Minimum d) Nil

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

8. Do you think that features of SUZUKI motors matches with the price of the Bike? a) Maximum b) Moderate c) Minimum d) Nil

9. Do you have any Complaint about your Bike in terms of following? a) Maximum b) Moderate c) Minimum d) Nil

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

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 Maximum 53 Moderate 71 Minimum 36 Nil 22

Options Responses

36

Percentage

29%

39%

20%

12%

Percentage

ra te

u m

5% 0 4% 0 3% 0 2% 0 1% 0 0 %
im a x

o d e

pt n oio s

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.

2) Which promotion techniques would you prefer for your purchase? II) Exchange Mela Moderate 54 30% Minimum 21 12% Nil 20 11%

Options Responses Maximum 87 48%

Percentage

37

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Percentage

ra te

im

u m

6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
a x

o d e

o to s p n i

INTERPRETATION 48% of the total customers have responded to the maximum extent that promotion

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,

3) Which promotion techniques would you prefer for your purchase? III) Scheme Coupons Maximum 70 38% Moderate 61 34% Minimum 30 16% Nil 21 12%

Options Responses Percentage

38

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Precentage

4% 0 3% 0 2% 0 1% 0
m u m u

0 %
a x

ra te

o d e

ot n pio s

INTERPRETATION 38% of the total customers have responded to the maximum extent that promotion

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.

4) Which promotion techniques would you prefer for your purchase? IV) Others Maximum 40 22% Moderate 33 18% Minimum 47 26% Nil 62 34%

Options Responses
4% Percentage 0 3% 0 2% 0 1% 0 Precentage

ra te

in im

0 %
a x

u m

o d e

39

ot n pio s

in im

N il

im

N il

im

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 Other promotion 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 Responses Percentage Maximum 60 33% Moderate 27 15% Mini in u in 87 48% Nil 8 4%

Precentage

ra te

u m

6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
im a x

o d e

ot n pio s

INTERPRETATION

40

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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? Options Responses Percentage
Precentage

Maximum 8 4%

Moderate 83 46%

Minimum 77 42%

Nil 14 8%

ra te

im

in im

u m

5% 0 4% 0 3% 0 2% 0 1% 0 0 %
a x

o d e

o to s p n i

INTERPRETATION

41

N il

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? Options Responses Percentage
Precentage

Maximum 75 41%

Moderate 80 44%

Minimum 10 5%

Nil 17 9%

ra te

u m

5% 0 4% 0 3% 0 2% 0 1% 0 0 %
a x

o d e

ot n pio s

INTERPRETATION

42

in im

N il

im

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? Options Responses Percentage
Precentage

Maximum 92 50%

Moderate 75 41%

Minimum 14 8%

Nil 1 1%

ra te

u m

6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
a x

o d e

ot n pio s

INTERPRETATION

43

in im

N il

im

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? Options Responses Percentage Maximum 29 16% Moderate 89 49% Minimum 31 17% Nil 33 18%

Precentage

ra te

u m

6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
a x

o d e

ot n pio s

INTERPRETATION

44

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N il

im

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? Options Responses Percentage Maximum 41 23% Moderate 77 42% Minimum 34 i 9% Nil 30 1 6%

Precentage

ra te

u m

5% 0 4% 0 3% 0 2% 0 1% 0 0 %
im a x

o d e

ot n pio s

INTERPRETATION 23% of the total customers have responded that to the maximum extent SUZUKI are increasing the sales.

45

in im

N il

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? Options Responses Percentage Maximum 40 22% Moderate 78 43% Minimum 34 19% Nil 30 1 6%

Precentage

ra te

u m

5% 0 4% 0 3% 0 2% 0 1% 0 0 %
im a x

o d e

ot n pio s

INTERPRETATION

46

in im

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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? Options Responses Percentage Maximum 36 20% Moderate 80 44% Minimum 36 20% Nil 30 16%

Precentage

ra te

u m

2% 5 2% 0 1% 5 1% 0 5 % 0 %
im a x

o d e

ot n pio s

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

47

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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 SUZUKI Others Excellent 62% 64% Good 17% 27% Moderate 14% 9% Less 7% 0% Nil 0% 0%

Percentage

ra te

e n t

7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
x c

s s

G o o

e ll

o d e

Pt n oio s

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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L e

N il

14%

of SUZUKI and 9% of Other Customers have responded for the option

Moderate. 7% of SUZUKI and 0% of Others Customers have opted the options Less. No customer have opted for nil

14) Style Options SUZUKI Others Excellent 45% 53% Good 36% 24% Moderate 15% 22% Less 4% 0% Nil 0% 0%

Percentage

e lle n t

ra te

6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
d G o o xc

ss

o d e

P tio s o n

INTERPRETATION

49

L e

N il

45%

of SUZUKI and 53% of Other Customers have responded for the option

Excellent. 36% of SUZUKI and 24% of Other Customers have responded for the option Good. 15% of SUZUKI and 22% of Other Customers have responded for the option

Moderate. 4% of SUZUKI and 0% of Others Customers have opted the options Less. No customer have opted for nil

15). Comfort Options SUZUKI Others

Percentage

Excellent 38% 31%

Good 50% 64%

Moderate 8% 4%

Less 4% 0%

Nil 0% 0%

ra te

e n t

7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
x c

G o o

s s

e ll

o d e

Pt n oio s

INTERPRETATION 38% of SUZUKI and 31% of Other Customers have responded for the option

Excellent, 50% of SUZUKI and 64% of Other Customers have responded for the option Good.

50

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8%

of SUZUKI and 4% of Other Customers have responded for the option

Moderate. 4% of SUZUKI and 0% of Others Customers have opted the option Less. No customer have opted for nil

16 ) Pickup Options SUZUKI Others Excellent 53% . 56% Good 34% 36% Moderate 10% 4% less 4% 4% Nil 0% 0%

Percentage

6 0% 5 0% 4 0% 3 0% 2 0% 1 0% 0%
e l le n t ra te d ss G o o xc o de Le N il

Potions

INTERPRETATION 53% of SUZUKI and 56% of Other Customers have responded for the option

Excellent. 34% of SUZUKI and 36% of Other Customers have responded for the option Good.

51

10%

of SUZUKI and 4% of Other Customers have responded for the option

Moderate. 4% of SUZUKI and 4% of Others Customers have opted the options Less. No customer have opted for nil

17) Cost Factor Options SUZUKI Others Excellent 4% 13% Good 10% 16% Moderate 41% 22% Less 45% 49% Nil 0% 0%

Percentage

ra te

e n t

0 .6 0 .5 0 .4 0 .3 0 .2 0 .1 0
x c

s s

G o o

e ll

o d e

Pt n oio s

INTERPRETATION 4% of SUZUKI and 13% of Other Customers have responded for the option

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

52

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N il

41%

of SUZUKI and 22% of Other Customers have responded for the option

Moderate. 45% of SUZUKI and 49% of Others Customers have opted the options Less. No customer have opted for nil

18) If you are already the owner of SUZUKI bike/vehicle, are you fully satisfied? Options Responses Percentage Maximum 20 15% Moderate 79 58% Minimum 28 20% Nil 10 7%

P r e te e ec n g
options 8 0 6 0 4 0 2 0 0 Mx u a im m M d r te o ea M im m in u N il

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.

53

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 Options Responses Percentage Maximum 89 65% Moderate 21 15% Minimum 17 13% Nil 10 7%

Pr e t g ec ne e
options 8% 0 6% 0 4% 0 2% 0 0 %
a x

ra te

u m

o d e

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.

54

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im

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 Responses Percentage YES 127 70% NO 55 30%

3% 0

7% 0

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

56

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.

57

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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