1

PROJECT REPORT
ON
MARKETING STRATEGIES OF ER AUTO PVT LTD
Submitted in partial fulfillment of the requirements for award of
Bachelor of Business Administration (Gen)
Of
Guru Gobind Singh Indraprastha University, Delhi.
Submitted by
Sahil Misri
Enrolment No: 11310601710
Of
Ansal Institute of Technology
Gurgaon
Guided by Dr. Manmohan Rahul

Guru Gobind Singh Indraprastha University, Delhi

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ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during this
project. My deepest thanks to Dr. Manmohan Rahul, the guide of the project for guiding
and correcting various documents of mine with attention and care. He has taken pain to go
through the project and make necessary correction as and when needed. I express my thank. I
would also thank my Institution and my faculty members without whom this project would
have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.




SAHIL MISRI












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EVALUATION OF THE PROJECT

This is to certify that the project titled Marketing strategies of ER Auto Pvt Ltd.
submitted by Sahil Misri of BBA (General),5
th
Semester of ANSAL INSTITUTE OF
TECHNOLOGY affiliated to GGSIP University, Delhi has been examined by the following
examiners:






INTERNAL EXAMINER EXTERNAL EXAMINER








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TABLE OF CONTENT


Sr. No. Title Page No.
1 Chapter 1:
Introduction
7 17
2 Chapter 2: Literature
Review
18 - 38
3 Chapter 3: Research
Methodology
39 - 41
4 Chapter 4: Data
Interpretation And
Analysis
42 - 51
5 Chapter 5: Finding
And Conclusion
52
6 Chapter 6:
Bibliography
53
7 Chapter 7: Appendix 54 - 55







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CHAPTER 1

INTRODUCTION


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COMPANY PROFILE

E R Auto Group of companies with more than 1200 employees has a total of six ISO-
9001:2000 and/or ISO/TS 16949: 2002 certified manufacturing units with the Head Office at
Rohtak (Haryana). Manufacturing units like E R Auto Pvt. Ltd. and E R Automotives Ltd.
located at fully developed and upcoming Industrial Hub of Haryana- IMT Manesar, Gurgaon
(near New Delhi) are pioneers in the field of precision component manufacturing with state-
of-the-art technology. The plant E R Automotives Ltd. was launched in continuation of the
group expansion to diversify in the field of automotives with additional technologies of
Engineering for wide & varied product range.
E R Auto Group is a fully integrated auto components manufacturer. Since its inception in the
year 1997, the organizational team has been thriving to deliver quality product as per OEM
(Original Equipment Manufacturer) requirements of precision turned, hard and ground auto
components, press parts, sub-assemblies and gears. Cold / Hot forging and Casting (ferrous
and non-ferrous) is outsourced and then machined in-house. We are continuously improving
productivity, optimizing resource utilization with strong focus on quality of the product and
globally best cost.
The Managing Director and his highly professional team combined with vast experience in
there respective fields have a vision to expand. We encourage our customers to leverage our
expertise, manufacturing capabilities and production facilities to develop component they
require. We lay great emphasis on in-house processing to ensure quality product and efficient
process.
With a total shop floor area of 130,000 sq. ft. the group has setup
modern plants with sophisticated manufacturing, QC and R&D
labs with modern & latest equipments. An array of CNC Turning
& Machining Centers, dedicated SPM lines, Grinding Machines,
GPMs, MIG-Welding, sealed quench/continuous heat treatment
facility in-house for carburizing, case carburizing, LCN & neutral
hardening, gear cutting & cold forming technologies brought us
immense reputation among our esteemed customers.
Our unique and efficient methods of developing new products by Reverse Engineering and
manufacturing response to the varying needs of the market equipped with state-of-the-art
machines and qualified, well trained and skilled manpower is an asset to us and our
customers. We confidently and safely boast of having and maintaining one of the lowest
product development time period in the industry.
The present turnover is around INR 1000 million (25 million USD) with an ambitious target
to cross INR 1200 million (30 million USD) by the year 2010-2011 at the record growth rate
of 20% annually.


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PRODUCTS

AUTO TURNED PARTS
Cam rear brake
Collar FR Axle Distance
Collar FR Fender
Seat stopper spring
Sleeve rear wheel
Sleeve rear wheel CD-100
Spring gear shift return
U-Clamp
Upper metal
Collar swing arm
Nut (hex) cap
Nut axle 14mm
Nut steering stem
Pin guide roller
Sleeve rear wheel
Seat stopper spring
Collar RR wheel side
Nut cap 7mm
Orifice 1.2mm
Plate clip 65mm
ENGINE COMPONENTS
Bush 20*9
Cotter main shaft
Nut lock 14MM
Oil lock piece
Pivot oil pump
Rotor oil filter
Rod cluth lifter
Oil through
Rod clutch lifter
Setting main shaft cotter
GEARS
Dog clutch gear 28 teeth
9

Dog clutch gear 37 teeth
Dog clutch gear 41 teeth
Dog clutch gear 44 teeth helical
Z gear 43 teeth
Sleeve 25 teeth internal
Hub boss 10 teeth timing gear
PISTON ROD (SHOCKERS)
Fork bolts
Fork pipe
Piston rods
Plug bolt
Seat pipe
Rebound seat
Plate bump stopper
Seat spring stopper
Spring adjuster
Upper metal
Valve seat


IN-HOUSE FACILITIES


1) TOOL ROOM CNC
CNC wire cut
Numeric control drilling
Surface grinders
NC milling M/c
CNC turning centers


2) COMPUTERISED HEAT TREATMENT
Sealed quench furnace
Case carburizing
Carbo nitriding
Neutral hardening
Tempering and washing
Capacity: 250 Kg/batch
Conveyor type
Electric heated furnace

3) METALLURGY TESTING
Macro structure analysis of Raw material, grain size, inclusions ratings etc.
Metallurgical analysis of heat treated parts
10

Rockwell cum superficial hardness tester
Micro vickers hardness
Micro structure analysis
case depth measurement
Microscoper with image analyzer


4) INTER PLANT LOGISTICS
The group owns a fleet of 10 commercial vehicles.
Regular inter plant plant shuttling takes place on a daily basis.
As a result there is better handing of the parts.
It ensures timely deliveries to customers.


OUTSOURCING FACILITIES

PLATING
o Zinc with trivalent passivations as per ELV norm and HEX.
o Nickel
o Hard chrome plating
o Gold, Silver, Brass copper, Tin, Cadmium
o Various industrial coatings
o Electroplating coating

Pressure Die Casting and gravity Die Casting
Forging
Anodizing
Powder Coating
LCN (Liquid Chronogenic Nitrating)







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MACHINERY EQUIPMENT

MACHINERY EQUIPMENT AT E R GROUP
S.No. Machinery Quantity (Nos.)
1 CNC TURN-MILL CENTRE 2
2 CNC VERTICAL MACHINING CENTRE 4
3 CNC TURNING 40
4 GEAR HOBBING 3
5 GEAR SHAPER 2
6 GEAR SHAVING 1
7 GEAR CHAMFERING AND DEBURRING 2
8 SWAGING 1
9 BROACHING MACHINE UPTO 10 TON 3
10 CNC WIRE CUT 1
11 CENTRELESS GRINDER 50
12 AUTOMAT WITH BARFEEDER (UPTO 42 dia. Capacity) 100
13 POWER PRESS (5 TO 150 TON) 36
14 MIG/ PROJECTION WELDING 7
15 SPM 10
16 GANG DRILLING 2
17 DRILLING MACHINE 50
18 MILLING 6
19 THREAD ROLLING 15
20 TAPPING MACHINE 10
21 LATHE 2
22 BANDSAW 2
23 SHOT BLASTING MACHINE 2
24 SAND BLASTING MACHINE 1
25 BURNISHING MACHINE




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CUSTOMERS



HERO HONDA MOTORS LTD (HERO MOTOCORP)
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's
largest manufacturer of two - wheelers, based in India.
In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing companyin India and also, the 'World No.1' two-wheeler company in terms
of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this
position till date.

INTERNATIONAL TRACTORS LIMITED
Sonalika, a special variety of wheat seeds was the major catalyst in ushering green revolution in India in
the early sixties. It was the adaptation of these Sonalika seeds that resulted in geometric growth in
production of food grains in the country.

The spirit of the name Sonalika which literally means 'Sone ki Lakeerein' or Lines of Gold has not only
helped the country in becoming self sufficient in food grains but also ensured that it turns India into an
exporter of food grains through the surplus in domestic production.
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International Tractors Limited, manufacturer of Sonalika Farm Equipment and Tractors under the brand
name 'Sonalika' has taken the same spirit forward not only in India but to over 70 countries across the
world and has become a name to reckon with.

Incorporated in 1969 to accomplish newer heights of success, Sonalika Group has come a long way.
Today the group is among the top three tractor manufacturers of India and provides a complete product
line including tractors, multi-utility vehicles, engines, farm machinery attachments, diesel gensets, auto
components and pick & carry cranes.
The group understands the requirements of its customers fairly well and tries coming up with exceptional
tailor-made products suiting their needs. The group's state-of-the-art production plants spread across many
acres and are strategically established in a pollution free zone in Punjab and Himanchal Pradesh.


MUNJAL SHOWA LTD
Established in 1985, in technical and financial collaboration with Showa Corpration of japa,
the pioneering global leaders in the manufacture of shock absorbers, Munjal Showa Limited
is a member of Hero Group.
Munjal Showa Limited in its joint venture with showa Corporation, designs and
manufacturers shock absorbers and struts fot two wheeler and four wheelers. The Munjal
Sgowa manufacturing plant is spread over an area of 24075 sq mt in the industrial area of
gurgaon, Haryana on rhe outskirts of the National Capital Territoryof Delhi, India.

GABRIEL INDIA LIMITED
Gabriel India Limited has strong presence as a producer and supplier of high quality Ride
Control Products for the Indian Automotive Industry participating in all segments i.e.
Passenger Cars, Utility Vehicles, Commercial Vehicles and Two Wheelers.
With the largest range of automotive components, the group recorded a sales turnover of INR
50 Billion in 2011, targeting to achieve INR100 billion by 2015. In 1961, the Group
commenced its operations with the establishment of Gabriel India, the Group's flagship
Company in Mumbai for manufacturing Shock Absorbers.With 18 companies spread across
49 locations and 9 states of the country, Anand also has another vertical operating in the area
of Luxury Hospitality.
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15

INFRASTRUCTURE





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.VISION & PHILOSOPHY
To develop integrated auto industrial components manufacturing unit of international
standards and thrive to deliver excellence in product and services.
Emphasis on manufacturing process to ensure build up quality and volume with
lowest possible product development time.
Proactive approach to achieve and sustain the ever exceeding expectation of global
industries by continuous technology upgradation and innovation.

QUALITY POLICY
The ER Group is commited for total satisfaction by continual improvement in the
plant performance by focussing on the cost, quality and deliver.

QUALITY INSTRUMENTS
CMM
CONTOUR MEASURING MACHINE
DIGITAL HEIGHT GAUGES
UNIVERSAL GEAR TESTER
SURFACE FINISH TESTER
PROFILE PROJECTOR
MILLIPORE APPRATUS
AIR GAUGES

OBJECTIVES

To improve customer satisfaction

100 percent on time delivery

To increase productivity

To reduce the cost of poor quality

To improve employee motivation
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CHAPTER 2
LITERATURE REVIEW



















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REVIEW OF LITERATURE

A literature review discusses published information in a particular subject area, and
sometimes information in a particular subject area within a certain time period.
A literature review can be just a simple summary of the sources, but it usually has an
organizational pattern and combines both summary and synthesis. A summary is a recap of
the important information of the source, but a synthesis is a re-organization, or a reshuffling,
of that information. It might give a new interpretation of old material or combine new with
old interpretations. Or it might trace the intellectual progression of the field, including major
debates. And depending on the situation, the literature review may eva2luate the sources and
advise the reader on the most pertinent or relevant.

Marketing is the process of communicating the value of a product or service to customers.
Marketing might sometimes be interpreted as the art of selling products, but selling is only a
small fraction of marketing. As a practice, it consists in coordination of four elements called
4P's: (1) identification, selection, and development of a product, (2) determination of its
price, (3) selection of a distribution channel to reach the customer's place, and (4)
development and implementation of a promotional strategy.

MEANING OF MARKETING STRATEGY
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of
marketing that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore contribute to
the goals of the company and its marketing objectives.




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TYPES OF MARKETING STRATEGY
One of the most important concepts of the marketing planning process is the need to develop
a cohesive marketing strategy that guides tactical programs for the marketing decision areas.
In marketing there are two levels to strategy formulation:
General Marketing Strategies
Decision Area Strategies

General Marketing Strategy
These set the direction for all marketing efforts by describing, in general terms, how
marketing will achieve its objectives. There are many different General Marketing Strategies,
though most can be viewed as falling into one of the following categories:
Market Expansion
Market Share Growth
Niche Market
Status Quo
Market Exit
Decision Area Strategies
These are used to achieve the General Marketing Strategies by guiding the decisions within
important marketing areas (product, pricing, distribution, promotion, target marketing). For
example, a General Marketing Strategy that centres on entering a new market with new
products may be supported by Decision Area Strategies that include:
Target Market Strategy employ segmenting techniques
Product Strategy develop new product line
Pricing Strategy create price programs that offer lower pricing versus competitors
Distribution Strategy use methods to gain access to important distribution partners
that service the target market
Promotion Strategy create a plan that can quickly build awareness of the product.
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MARKETING STRATEGY PROCESS







Understand Your Customer
Develop a clear picture of your target customer using market research and analysis.
Understand their pain points and the benefits of your solution.
Analyze the Market
Some basic market research should allow you to find market data such as total available
market, market growth (historical numbers and projections), market trends, etc.
Analyze the Competition
Ask yourself what other choices your target customers have to solve their pain point.
Research and assess the strengths and weaknesses of each.
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Research Distribution Channels
What is the best way to deliver your product or service to your target customers? This
will impact your sales strategy and your financials, as well as your marketing mix.

Define Your Marketing Mix
Check out this article about defining your marketing mix: Product,Price, Place
and Promotion.
Analyze the Financials
Put together your marketing budget and evaluate projected marketing ROI, customer
acquisition costs, etc.
Review and Revise
Continuously evaluate the effectiveness of your marketing strategy, and revise or extend
as needed.

Marketing Strategy objectives
Increase product awareness among the target audience by 30 percent in one
year.
Inform target audience about features and benefits of our product and its
competitive advantage, leading to a 10 percent increase in sales in one year.
Decrease or remove potential customers' resistance to buying our product,
leading to a 20 percent increase in sales that are closed in six months or less.
The marketing strategy section of your plan outlines your game plan to achieve your marketing
objectives. It is, essentially, the heart of the marketing plan. The marketing strategy section should
include information about:
Product - your product(s)and services
Price - what you will charge customers for products and services
Promotion - how you will promote or create awareness of your product in the marketplace
Place (distribution) - how you will bring your product(s) together with your customers.
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LIMITATION OF MARKETING STRATGY
leads to faulty marketing decisions based on improperly analyzed data
creates unrealistic financial projections if information is interpreted incorrectly


MARKETING MANAGEMENT

Marketing Management is a business discipline which is focused on the practical application
of marketing techniques and the management of a firm's marketing resources and activities.
Rapidly emerging forces of globalization have compelled firms to market beyond the borders
of their home country making International marketing highly significant and an integral part
of a firm's marketing strategy. Marketing managers are often responsible for influencing the
level, timing, and composition of customer demand accepted definition of the term. In part,
this is because the role of a marketing manager can vary significantly based on a business'
size, corporate culture, and industry context. For example, in a large consumer products
company, the marketing manager may act as the overall general manager of his or her
assigned product To create an effective, cost-efficient Marketing management strategy, firms
must possess a detailed, objective understanding of their own business and the market in
which they operate. In analyzing these issues, the discipline of marketing management often
overlaps with the related discipline of strategic planning.

DIFFERENTIATION STRATEGY
It is the one, which creates a product or service that is perceived as being unique "throughout
the industry". The emphasis can be on brand image, proprietary technology, special features,
superior service, a strong distributor network or other aspects that might be specific to the
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industry. This uniqueness should also translate to profit margins that are higher than the
industry average. Some of the conditions that should exist to support a differentiation strategy
include strong marketing abilities, effective product engineering, creative personnel, the
ability to perform basic research and a good reputation.

COST LEADERSHIP STRATEGY
It is based on the concept that one can produce and market a good quality product or service
at a lower cost than its competitors. These low costs should translate to profit margins that are
higher than the industry average.
Some conditions that should exist to support a cost leadership strategy include an on-going
availability of operating capital, good process engineering skills, and close management of
labor, products designed for ease of manufacturing and low cost distribution.

FOCUS STRATEGY
It may be the most sophisticated of the generic strategies, in the sense that it is a more
'intense' form of either the cost leadership or differentiation strategy. It is based on the
concept of serving a particular target in such an exceptional manner, those others cannot
compete. Usually this means addressing a substantially smaller market segment than others in
the industry, but because of minimal competition, profit margins can be very high.

PRICING STRATEGY
Having defined the overall offering objective and selecting the generic strategy one must
decide on a variety of closely related operational strategies. One of these is how one will
price the offering. A pricing strategy is mostly influenced by the net income. There are three
basic strategies one can consider.
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Penetration pricing
You often see the tagline special introductory offer the classic sign of penetration
pricing. The aim ofpenetration pricing is usually to increase market share of a
product, providing the opportunity to increase price once this objective has been achieved.
Penetration pricing is the pricing technique of setting a relatively low initial entry price,
usually lower than the intended established price, to attract new customers. The strategy aims
to encourage customers to switch to the new product because of the lower price.
Penetration pricing is most commonly associated with a marketing objective of increasing
market share or sales volume. In the short term, penetration pricing is likely to result in
lower profits than would be the case if price were set higher. However, there are some
significant benefits to long-term profitability of having a higher market share, so the pricing
strategy can often be justified.

Cost-plus pricing
Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing
the product and adds on a percentage (profit) to that price to give the selling price. This
method although simple has two flaws; it takes no account of demand and there is no way of
determining if potential customers will purchase the product at the calculated price.
This appears in two forms, Full cost pricing which takes into consideration both variable and
fixed costs and adds a % markup. The other is Direct cost pricing which is variable costs plus
a % markup, the latter is only used in periods of high competition as this method usually
leads to a loss in the long run.

Creaming or skimming
In most skimming, goods are sold at higher prices so that fewer sales are needed to break
even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore
"skimming" the market. Skimming is usually employed to reimburse the cost of investment
of the original research into the product: commonly used in electronic markets when a new
range, such as DVD players, are firstly dispatched into the market at a high price. This
strategy is often used to target "early adopters" of a product or service. Early adopters
generally have a relatively lower price-sensitivity - this can be attributed to: their need for the
product outweighing their need to economise; a greater understanding of the product's value;
or simply having a higher disposable income.
This strategy is employed only for a limited duration to recover most of the investment made
to build the product. To gain further market share, a seller must use other pricing tactics such
as economy or penetration. This method can have some setbacks as it could leave the product
at a high price against the competition



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PROMOTION
Promotion is a form of corporate communication that uses various methods to reach a
targeted audience with a certain message in order to achieve specific organizational
objectives. There are two types of promotional strategies :

Push Strategy
A push promotional strategy makes use of a company's sales force and trade promotion
activities tocreate consumer demand for a product. The producer promotes the product to
wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.
A good example of "push" selling is mobile phones, where the major handset manufacturers
such as Nokia promote their products via retailers such as Carphone Warehouse. Personal
selling and trade promotions are often the most effective promotional tools for companies
such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell
higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels
(e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions
and advertising are the most likely promotional tools.

Pull Strategy
A pull selling strategy is one that requires high spending on advertising and consumer
promotion to build up consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the retailers
will ask the wholesalers, and the wholesalers will ask the producers.









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FOUR Ps OF MARKETING MIX






PRODUCT
The first thing you need, if you want to start a business, is a product. Therefore Product is
also the first variable in the marketing mix. Product decisions are the first decisions you need
to take before making any marketing plan. A product can be divided into three parts. The core
product, the augmented product and the tertiary product. Before deciding on the product
component there are some questions which you need to ask yourself.
What product are you selling?
What would be the quality of your product?
Which features are different from the market?
What is the USP of the product?
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Whether the product will be branded as sub brand or completely new?
What are the secondary products which can be sold along with primary (Warranty, services)
Based on these questions, several product decisions have to be made. These product
decisions will in turn affect the other variables of the marketing mix. For example You
launch a car with is to have the highest quality. Thus the pricing, promotions and placing
would have to be altered accordingly. Thus as long as you dont know your product, you
cannot decide any other variable of the marketing mix. However, if the product features are
not fitting in the marketing mix, you can alter the product such that it finds a place for itself
in the marketing mix.

PRICE
Pricing of a product depends on a lot of different variables and hence it is constantly updated.
Major consideration in pricing is the costing of the product, the advertising and marketing
expenses, any price fluctuations in the market, distribution costs etc. Many of these factors
can change separately. Thus the pricing has to be such that it can bear the brunt of changes
for a certain period of time. However, if all these variables change, then the pricing of a
product has to be increased and decreased accordingly.
Along with the above factors, there are also other things which have to be taken in
consideration when deciding on a pricing strategy. Competition can be the best example.
Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for
sales promotions in the form of trade discounts. Thus based on these factors there are
several pricing strategies, one of which is implemented for the marketing mix.



PLACE
Place refers to the distribution channel of a product. If a product is a consumer product, it
needs to be available as far and wide as possible. On the other hand, if the product is
a Premium consumer product, it will be available only in select stores. Similarly, if the
product is a business product, you need a team who interacts with businesses and makes the
product available to them. Thus the place where the product is distributed, depends on the
product and pricing decisions, as well as any STP decisions taken by a firm.
Distribution has a huge affect on the profitability of a product. Consider a FMCG company
which has national distribution for its product. An increase in petrol rates by 10 rs will in fact
bring about drastic changes in the profitability of the company. Thus supply chain and
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logistics decisions are considered as very important costing decisions of the firm. The firm
needs to have a full proof logistics and supply chain plan for its distribution.


DISTRIBUTION CHANNELS
Direct/sales team: One or more sales teams that you employ directly. You may use
multiple teams that specialize in different products or customer segments.
Direct/internet: Selling through your own e-commerce website.
Direct/catalog: Selling through your own catalog.
Wholesaler/distributor: A company that buys products in bulk from many
manufacturers and then re-sells smaller volumes to resellers or retailers.
Value-added reseller (VAR): A VAR works with end-users to provide custom
solutions that may include multiple products and services from different
manufacturers.
Consultant: A consultant develops relationships with companies and provides either
specific or very broad services; they may recommend a manufacturers product or
simply purchase it to deliver a solution for the customer.
Dealer: A company or person who buys inventory from either a manufacturer or
distributor, then resells to an end-user.
Retail: Retailers sell directly to end-users via a physical store, website or catalog.
Sales agent/manufacturers rep: You can outsource your sales function to a
company that sells different manufacturers products to a group of similar customers
in a specific territory.

PROMOTION
Promotions in the marketing mix includes the complete integrated marketing communications
which in turn includes ATL and BTL advertising as well as sales promotions. Promotions are
dependent a lot on the product and pricing decision. What is the budget for marketing and
advertising? What stage is the product in? If the product is completely new in the market, it
needs brand / product awareness promotions, whereas if the product is already existing then it
will need brand recall promotions.
Promotions also decide the segmentation targeting and positioning of the product. The right
kind of promotions affect all the other three variables the product, price and place. If the
promotions are effective, you might have to increase distribution points, you might get to
increase the price because of the rising brand equity of the product, and the profitability
might support you in launching even more products. However, the budget required for
29

extensive promotions is also high. Promotions is considered as marketing expenses and the
same needs to be taken in consideration while deciding the costing of the product.


The following are two types of Promotion:
Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet,
Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an
advertising agency to place the ad
Below the line promotion: All other promotion. Much of this is intended to be subtle enough
for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product
placement, endorsements, sales promotion, merchandising, direct mail, personal selling,
public relations, trade shows

There are five main aspects of a promotional mix. These are:
Advertising - Presentation and promotion of ideas, goods, or services by an identified
sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and
catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and
emails. (Always in Paid Form non personal)
Personal selling - A process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral
presentation. Examples: Sales presentations, sales meetings, sales training and incentive
programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face
or via telephone.
Sales promotion- Media and non-media marketing communication are employed for a
pre-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples: Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions.
Public relations - Paid intimate stimulation of supply for a product, service, or business
unit by planting significant news about it or a favorable presentation of it in the
media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations,
charitable contributions, speeches, issue advertising, and seminars.
Direct Marketing is a channel-agnostic form of advertising that allows businesses and
nonprofits to communicate straight to the customer, with advertising techniques such as
mobile messaging, email, interactive consumer websites, online display ads, fliers,
catalog distribution, promotional letters, and outdoor advertising.
Corporate image Corporate image may also be considered as the sixth aspect of promotion
mix. The Image of an organization is a crucial point in marketing. If the reputation of a
30

company is bad, consumers are less willing to buy a product from this company as they
would have been, if the company had a good image. Sponsorship is sometimes added as an
seventh aspect.

DISTRIBUTION
One must also select the distribution strategy(s) which should get the offering into the hands
of the customer. These include:
On-premise Sales involving the sale of the offering using a field sales organization
that visits the prospect's facilities to make the sale.
Direct Sales involves the sale of the offering using a direct, in-house sales
organization that does all selling through the Internet, telephone or mail order
contacts.
Wholesale Sales involves the sale of the offering using intermediaries or "middle-
men" to distribute product or service to the retailers.
Self-service Retail Sales involves the sale of the offering using self-service retail
methods of distribution.
Full-service Retail Sales involves the sale of the offering through a full service retail
distribution channel.

DISTRIBUTION TYPES
1. Intensive distribution means the producer's products are stocked in the majority of
outlets. This strategy is common for basic supplies, snack foods, magazines and soft
drink beverages.
2. Selective distribution means that the producer relies on a few intermediaries to carry
their product. This strategy is commonly observed for more specialised goods that are
carried through specialist dealers, for example, brands of craft tools, or large
appliances.
3. Exclusive distribution means that the producer selects only very few
intermediaries. Exclusive distribution is often characterised by exclusive dealing
where the reseller carries only that producer's products to the exclusion of all others.
This strategy is typical of luxury goods retailers such as Gucci.


31

CONCLUSION
After defining the strategy one must use the information one has gathered to determine
whether this strategy will achieve the objective of making the enterprise competitive in the
marketplace. It is essential to know who the competitors are and to understand their strengths
and weaknesses.
Various factors to consider include:
Each of the competitors experience,
Staying power,
Market position,
Strength,
Predictability and
Freedom to abandon the market must be evaluated.


MARKETING RESEARCH

Marketing research is "the function that links the consumers, customers, and public to the
marketer through information information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the method for
collecting information, manages and implements the data collection process, analyzes the
results, and communicates the findings and their implications."
It is the systematic gathering, recording, and analysis of qualitative and quantitative data
about issues relating to marketing products and services. The goal of marketing research is to
identify and assess how changing elements of the marketing mix impacts customer behavior.
The term is commonly interchanged with market research; however, expert practitioners may
wish to draw a distinction, in that market research is concerned specifically with markets,
while marketing research is concerned specifically about marketing processes.

TYPES OF MARKETING RESEARCH

There are two types of marketing research. These are :

Primary research
32

Secondary research

PRIMARY RESEARCH

Primary research is information that can be directly collected from a source such as your
target demographic audience, and past or current customers. It can be done in a number of
ways including through both qualitative and quantitative means.


Qualitative Primary Research

Qualitative primary research involves using focus groups and interviews to gather important
information from key members of your target audience. We do this with open ended
interviews that require complex answers beyond the typical yes and no and that will
reveal things like innate interests, dislikes, trends and emotional factors that affect buying
behaviors.
Focus group research is done in groups of six or more people that are led by a trained
professional in that field. Because we have such a wide base of trained experts in a number of
disciplines we can expedite the process of having and building focus groups for your
business.

Quantitative Primary Research

Beyond opinions and interactions with target audience members, there are times at which you
will want more numerical data with which to work. We offer surveys that allow us to gather
numerical data from a large group of people that can be analyzed to better understand the
thoughts and actions of your market. Online tools make this faster and easier than ever before
to accomplish.



CATI Surveys

Computer aided telephone interviews are a powerful and highly effective means of generating
large volumes of data from your target audience and existing customers without the expense
of manually operating a survey.
To develop a CATI survey for your business we will develop an objective brief and survey
draft, then a call script and lead list with which to start contacting prospects. We have the
resources and technology already in place to conduct these telephone interviews and can
work with you to customize the process to fit your specific market. Most often, CATI surveys
are used to better understand how your products and services are perceived in contrast to
those of your competitors and what issues your competitors may be concerned about.


SECONDARY RESEARCH

Secondary market research involves analyzing large volumes of data from secondary sources
online. Web based market research can be done rapidly - almost in real time - because of the
plethora of resources available including social media, organic search results and online news
sources.
33


Secondary research sources used by our staff include:

Trade Associations
Marketing Departments of Local Colleges
Chamber of Commerce
Insurance Companies
Banks
Real Estate Companies
Wholesalers
Manufacturers
Libraries and Public Information Centers
Books and Publications
Magazines and Newspapers
Media Representatives
Competitors
Business Information Centers
Federal Government Resources
Regional Planning Organizations
Discussion Groups


Marketing planning
The area of marketing planning involves forging a plan for a firm's marketing activities. A
marketing plan can also pertain to a specific product, as well as to an organization's overall
marketing strategy. Generally speaking, an organization's marketing planning process is
derived from its overall business strategy. Thus, when top management are devising the
firm's strategic direction or mission, the intended marketing activities are incorporated into
this plan. There are several levels of marketing objectives within an organization. The senior
management of a firm would formulate a general business strategy for a firm. However, this
general business strategy would be interpreted and implemented in different contexts
throughout the firm.





34

Marketing Environment

The marketing environment surrounds and impacts upon the organization. There are three
key elements to the marketing environment which are the internal environment,
the microenvironment and the macroenvironment. Why are they important? Well marketers
build both internal and external relationships. Marketers aim to deliver value to satisfied
customers, so we need to assess and evaluate our internal business/corporate environment and
our external environment which is subdivided into micro and macro.

MICROENVIRONMENT
The microenvironment refers to the forces that are close to the company and affect its ability
to serve its customers. It includes the company itself, its suppliers, marketing intermediaries,
customer markets, competitors, and publics.
The company aspect of microenvironment refers to the internal environment of the company.
This includes all departments, such as management, finance, research and
development, purchasing,operations and accounting. Each of these departments has an impact
on marketing decisions. For example, research and development have input as to the features
a product can perform and accounting approves the financial side of marketing plans and
budgets.
The suppliers of a company are also an important aspect of the microenvironment because
even the slightest delay in receiving supplies can result in customer dissatisfaction. Marketing
managers must watch supply availability and other trends dealing with suppliers to ensure
that product will be delivered to customers in the time frame required in order to maintain a
strong customer relationship.
Another aspect of microenvironment is the customers. There are different types of customer
markets including consumer markets, business markets, government markets, international
markets, and reseller markets. The consumer market is made up of individuals who
buy goods and services for their own personal use or use in their household. Business markets
include those that buy goods and services for use in producing their own products to sell.
This is different from the reseller market which includes businesses that purchase goods to
resell as is for a profit. These are the same companies mentioned as market intermediaries.
The government market consists of government agencies that buy goods to produce public
services or transfer goods to others who need them. International markets include buyers in
other countries and includes customers from the previous categories.
Competitors are also a factor in the microenvironment and include companies with similar
offerings for goods and services. To remain competitive a company must consider who their
biggest competitors are while considering its own size and position in the industry. The
company should develop a strategic advantage over their competitors.
The final aspect of the microenvironment is publics, which is any group that has an interest in
or impact on the organizations ability to meet its goals. For example, financial publics can
hinder a companys ability to obtain funds affecting the level of credit a company has. Media
publics include newspapers and magazines that can publish articles of interest regarding the
company and editorials that may influence customers opinions. Government publics can
35

affect the company by passing legislation and laws that put restrictions on the companys
actions.


MACROENVIRONMENT
The macroenvironment refers to all forces that are part of the larger society and affect the
microenvironment. It includes concepts such as demography, economy, natural forces,
technology, politics, and culture.
Demography refers to studying human populations in terms of size, density, location, age,
gender, race, and occupation. This is a very important factor to study for marketers and helps
to divide the population into market segments and target markets. An example of
demography is classifying groups of people according to the year they were born. These
classifications can be referred to as baby boomers, who are born between 1946 and
1964,generation X , who are born between 1965 and 1976, and generration Y, who are born
between 1977 and 1994. Each classification has different characteristics and causes they find
important.
Another aspect of the macroenvironment is the economic environment. This refers to the
purchasing power of potential customers and the ways in which people spend their money.
Within this area are two different economies, subsistence and industrialized. Subsistence
economies are based more in agriculture and consume their own industrial output. Industrial
economies have markets that are diverse and carry many different types of goods. Each is
important to the marketer because each has a highly different spending pattern as well as
different distribution of wealth.
The natural environment is another important factor of the macroenvironment. This includes
the natural resources that a company uses as inputs and affects their marketing activities. The
concern in this area is the increased pollution, shortages of raw materials and increased
governmental intervention. As raw materials become increasingly scarcer, the ability to
create a companys product gets much harder. Also, pollution can go as far as negatively
affecting a companys reputation if they are known for damaging the environment. The last
concern, government intervention can make it increasingly harder for a company to fulfill
their goals as requirements get more stringent.
The technological environment is perhaps one of the fastest changing factors in the
macroenvironment. This includes all developments from antibiotics and surgery to nuclear
missiles and chemical weapons to automobiles and credit cards. As these markets develop it
can create new markets and new uses for products. It also requires a company to stay ahead
of others and update their own technology as it becomes outdated. They must stay informed
of trends so they can be part of the next big thing, rather than becoming outdated and
suffering the consequences financially.
The political environment includes all laws, government agencies, and groups that influence
or limit other organizations and individuals within a society. It is important for marketers to
be aware of these restrictions as they can be complex. Some products are regulated by both
state and federal laws. There are even restrictions for some products as to who the target
market may be, for example, cigarettes should not be marketed to younger children. There are
36

also many restrictions on subliminal messages and monopolies. As laws and regulations
change often, this is a very important aspect for a marketer to monitor.
The final aspect of the macroenvironment is the cultural environment, which consists of
institutions and basic values and beliefs of a group of people. The values can also be further
categorized into core beliefs, which passed on from generation to generation and very
difficult to change, and secondary beliefs, which tend to be easier to influence. As a marketer,
it is important to know the difference between the two and to focus your marketing campaign
to reflect the values of a target audience.


MARKET SEGMENTATION
Market segmentation is a marketing concept which divides the complete market set up
into smaller subsets comprising of consumers with a similar taste, demand and
preference .
A market segment is a small unit within a large market comprising of like minded
individuals.
One market segment is totally distinct from the other segment.
The individuals from the same segment respond in a similar way to the fluctuations in
the market.


TYPES OF MARKET SEGMENTATION
Psychographic segmentation
The basis of such segmentation is the lifestyle of the individuals. The individuals
attitude, interest, value help the marketers to classifythem into smaller groups.
Behavioural segmentation
The loyalties of the customers towards a particular brand help the marketers to
classify them into smaller groups, each group comprising of individuals loyal towards
a particular brand.
Geographical segmentation
Geographical segmentation refers to the classification of market into various
geographical areas. A marketer cant have similar strategies for individuals living at
different places.




37

MARKET TARGETING

Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments. Target marketing can be the key to a small
businesss success.

The beauty of target marketing is that it makes the promotion, pricing and distribution of your
products and/or services easier and more cost-effective.

Target marketing provides a focus to all of your marketing activities. Market targeting simply
means choosing ones target market. It needs to beclarified at the onset that marketing
targeting is not synonymous with marketsegmentation. Segmentation is actually the prelude
to target market selection.One has to carry out several tasks beside segmentation before
choosing the targetmarket.

After the most attractive segments are selected, a company should not directly start targeting
all these segments -- other important factors come into play in defining a target market. Four
sub activities form the basis for deciding on which segments will actually be targeted.

The four sub activities within targeting are:
1. defining the abilities of the company and resources needed to enter a market
2. analyzing competitors on their resources and skills
3. considering the companys abilities compared to the competitors' abilities
4. deciding on the actual target markets.
The first three sub activities are described as the topic competitor analysis. The last sub
activity of deciding on the actual target market is an analysis of the company's abilities to
those of its competitors. The results of this analysis leads to a list of segments which are most
attractive to target and have a good chance of leading to a profitable market share.
Obviously, targeting can only be done when segments have been defined, as these segments
allow firms to analyze the competitors in this market. When the process of targeting is ended,
the markets to target are selected, but the way to use marketing in these markets is not yet
defined. To decide on the actual marketing strategy, knowledge of the differential advantages
of each segment is needed.


POSITIONING
When the list of target markets is made, a company might want to start on deciding on a good
marketing mix directly. But an important step before developing the marketing mix is
deciding on how to create an identity or image of the product in the mind of the customer.
Every segment is different from the others, so different customers with different ideas of
what they expect from the product. In the process of positioning the company:
1. Identifies the differential advantages in each segment
38

2. Decides on a different positioning concept for each of these segments. This process is
described at the topic positioning, here different concepts of positioning are given.
The process-data model shows the concepts resulting from the different activities before and
within positioning. The model shows how the predefined concepts are the basis for the
positioning statement. The analyses done of the market, competitors and abilities of the
company are necessary to create a good positioning statement.
When the positioning statement is created, one can start on creating the marketing mix.

















39

CHAPTER-3
RESEARCH METHODOLOGY

INTRODUCTION
The system of collecting data for research projects is known as research methodology. The
data may be collected for either theoretical or practical research for example management
research may be strategically conceptualized along with operational planning methods and
change management. Research methodology is where you describe the how goanna gather
information (methods) this can be survey interview, litterateur review etc. And then explain
each method what are they, what you will do in each method.

DATA COLLECTION METHOD USED
Questionnaire Method

Type of data
Source of data can be classified in to two. Those are,
Primary data
Secondary data
PRIMARY DATA
Data that has been collected from first-hand-experience is known as primary data. Primary
data has not been published yet and is more reliable, authentic and objective. Primary data
has not been changed or altered by human beings, therefore its validity is greater than
secondary data. Following are some of the sources of primary data.
Experiments: Experiments require an artificial or natural setting in which to perform logical
study to collect data. Experiments are more suitable for medicine, psychological studies,
nutrition and for other scientific studies. In experiments the experimenter has to keep control
over the influence of any extraneous variable on the results.
Survey: Survey is most commonly used method in social sciences, management, marketing
and psychology to some extent. Surveys can be conducted in different methods.
40

Questionnaire: is the most commonly used method in survey. Questionnaires are a list of
questions either open-ended or close -ended for which the respondent give answers.
Questionnaire can be conducted via telephone, mail, live in a public area, or in an
institute, through electronic mail or through fax and other methods.
Interview: Interview is a face-to-face conversation with the respondent. In interview the
main problem arises when the respondent deliberately hides information otherwise it is
an in depth source of information. The interviewer can not only record the statements
the interviewee speaks but he can observe the body language, expressions and other
reactions to the questions too. This enables the interviewer to draw conclusions easily.
Observations: Observation can be done while letting the observing person know that he
is being observed or without letting him know. Observations can also be made in natural
settings as well as in artificially created environment.


SECONDARY DATA
Data collected from a source that has already been published in any form is called as
secondary data. The review of literature in nay research is based on secondary data. MNostly
from books, journals and periodicals.
Sources of Secondary Data:
Secondary data is often readily available. After the expense of electronic media and internet
the availability of secondary data has become much easier.
Published Printed Sources: There are variety of published printed sources. Their credibility
depends on many factors. For example, on the writer, publishing company and time and date
when published. New sources are preferred and old sources should be avoided as new
technology and researches bring new facts into light.
Books
Journals/periodicals
Magazines/Newspapers

Published Electronic Sources: As internet is becoming more advance, fast and reachable to
the masses; it has been seen that much information that is not available in printed form is
available on internet. In the past the credibility of internet was questionable but today it is
not. The reason is that in the past journals and books were seldom published on internet but
today almost every journal and book is available online. Some are free and for others you
have to pay the price.
e-journals
General websites;
Weblogs
Diaries
41

Letters

Governement Records: Government records are very important for marketing,
management, humanities and social science research.
Census Data/population statistics:
Health records
Educational institutes records

Public Sector Records:
NGOs's survey data
Other private companies records


SAMPLE SIZE : 50
















42

CHAPTER-4
DATA INTERPRETATION & ANALYSIS
The data was collected from 50 employees through a questionnaire which had 10 questions.

Q1) Do you think that marketing management plays an important role in success of an
organisation?
a) Yes
b) No




According to this, 80% people think that management plays an important role in the
success of the organisation while 20% are not in the favour of this.


80%
20%
Yes No
43

Q2.) How would you rate your ability to discuss the use and features of the parts you sell?
a) Good
b) Very good
c) Average



CONCLUSION
According to this, 50% say very well while 45% say good and 5% say average.







45%
50%
5%
Good
Very Good
Average
44


Q3) Do you think targeting the right customers and people in the market are very beneficial
for running a long term business?
a) Yes
b) No



CONCLUSION
According to this, 80% people say Yes while rest 20% say No.





80%
20%
Yes
No
45

Q4) Do you think an effective business targeting policy always brings the desired clientele?
a) Yes
b) No



CONCLUSION
According to this, 75% people say YES while 25% say NO.






75%
25%
Yes No
46

Q5) do you think the advertisements of our services and products capture the best quality in
the market?
a) Yes
b) No
c) Cant say



CONCLUSION
According to this, 85 % people say YES that advertisement capture the market while
10% say NO and 5% were not able to say.






85%
10%
5%
Yes
No
Cant Say
47

Q6) Do you need new tools to educate prospects about your industry or product?
c) Yes
d) No




CONCLUSION
According to this, 90% say YES that they need new tools while 10% say NO.









90%
10%
Yes
No
48

Q7) Do you know your most profitable customers and are you targeting prospects that look
just like your best customers ?
a) Yes
b) No




CONCLUSION
According to this, 75% people say YES that they are aware of their profitable
customers and are targeting prospects while 25% say NO.








75%
25%
Yes
No
49

Q8) Does the company need to recruit more staff for implementing the policies?
a) Yes
b) No




COCLUSION
According to this, 85% people say YES that they should recruit more staff for
implementing policies while 15% people say NO.






85%
15%
Yes
No
50

Q9) Are you tracking and recording response and transactional data to create full profiles of
your customers and their behavior so you can target future promotions?
a) Yes
b) No





CONCLUSION
According to this, 90% people say YES that they are tracking and recording responses
of their customer to target for future promotions while 10% people say NO.








90%
10%
Yes
No
51

Q10) Do you often take feedbacks from your customers?
a) Yes
b) No




CONCLUSION
According to this, 90% people take feedbacks from their customers ehile 10% say No.








90%
10%
Yes
No
52

CHAPTER-5
FINDINGS & CONCLUSIONS

From the entire project we all learnt and found out the following things-
Many of the people were not willing to give the answers properly and correctly.
Many of the respondents rated quality action to be very important buying criteria.
As per the survey, price is perceived to be an important criterion by many of the
respondents.
Surveyed conclude that as our company is new it has more growth as compared
to other companies.
Many of the respondents think that management plays an important role in the success
of every organisation.
Advertisements also capture the best quality in the market as said by many of the
respondents.

LIMITATIONS
Many of the respondents were not willing to give the answers and were also not
intersted.
Time frame of the study was also very less.
As the survey was taken from one or two organisations , the scope of the studsy is
limited.








53

CHAPTER-6
BIBLIOGRAPHY & REFERENCES

1 .www.google.com
2. www.erauto.com
3. ER AUTO PVT LTD catalogues
4. Survey of employees of various departments and organizations
5. www.quickmba.com


















54

CHAPTER-7
APPENDIX
QUESTIONNAIRE

Q1) Do you think that marketing management plays an important role in success of an
organisation?
a) Yes
b) No

Q2.) How would you rate your ability to discuss the use and features of the parts you sell?
a) Good
b) Very good
c) Average

Q3) Do you think targeting the right customers and people in the market are very beneficial
for running a long term business?
a) Yes
b) No

Q4) Do you think an effective business targeting policy always brings the desired clientele?
a) Yes
b) No


55

Q5) do you think the advertisements of our services and products capture the best quality in
the market?
a) Yes
b) No
c) Cant say

Q6) Do you need new tools to educate prospects about your industry or product?
a) Yes
b) No

Q7) Do you know your most profitable customers and are you targeting prospects that look
just like your best customers ?
a) Yes
b) No

Q8) Does the company need to recruit more staff for implementing the policies?
a) Yes
b) No

Q9) Are you tracking and recording response and transactional data to create full profiles of
your customers and their behavior so you can target future promotions?
a) Yes
b) No

Q10) Do you often take feedbacks from your customers?
a) Yes
b) No