Part2 pm-1

Sales promotion on Sonalika Tractors
Introduction
Sales promotion offers a direct inducement to act by providing extra worth over and above
what is built into the product at its normal price. These temporary inducements are offered
usually at a time and place where the buying decision is made. Not only are sales
promotions very common in the current competitive market conditions, they are increasing
at a fast pace. These promotions are direct inducements.
In spite of the directness, sales promotions are fairly complicated and a rich tool of
marketing with innumerable creative possibilities limited only by the imagination of
promotion planners. Sales promotion is often referred to by the names of extra purchase
value and below-the-line selling.
Every businessman wants to increase the sale of goods that he deals in. He can adopt
several ways for that purpose. You might have heard about lakhpati bano, win a tour to
Singapore, 30% extra in a pack of one kg, scratch the card and win a prize etc. You
might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free
with some products.
Today we find companies in almost all sectors offering some sort of a promotion scheme.
These sectors range from automobiles to beverages, from financial services to foods, from
household durables to services, from household products to business products, from
personal care to textiles and apparel.
Thus, sales promotion consists of all activities other than advertising and personal selling
that help to increase sales of a particular commodity.
Rajiv Gandhi Memorial College of Engineering & technology, Nandyal, AP. Page
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Objectives of the study
Primary Objective
To study about the sales promotion on sonalika tractors at nandyal .
Secondary Objective
To examine the factors establishes and increases levels of sales promotion

towards sonalika tractors .
To study customers attitude towards purchase behavior induced efforts of sonalika
tractors .
To identify the sources & awareness of sonalika tractors.
To identify the marketing strength of sonalika tractors.
To obtain suggestion for the improvement of the product and services of
Sonalika tractors by its sales promotion.
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Need of the Study

Sales are the lifeblood of a businesswithout sales there would be no business in the first
place; therefore it is very important that if a business wants to succeed, it should have a
sales promotion strategy in mind. The primary objective of a sales promotion is to improve
a companys sales by predicting and modifying your target customers purchasing
behavior and patterns.
Sales promotion is very important as it not only helps to boost sales but it also helps a
business to draw new customers while at the same time retaining older ones.
A business can promote itself through and effective sales promotion because it says
something about work and helps the business to identify themselves. They can be an
inexpensive way of increasing awareness, of reaching new buyers or extending the buying
choices of existing audiences. As an essential part of any promotional campaign they
should be planned from the beginning. The main purpose of this study is to understand the
various Strategies Promotion Mix which make the customers of hero bikes to buy them.
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Scope of the Study
The study is restricted to Nandyal town. The main purpose of conducting research is
to understand sales promotion factors with reference to sonalika tractors in nandyal
town. As time specified for conducting research is short, I preferred to perform research in
nandyal town.
Good for building awareness effective at reaching wide audience.

Repetition of main brand and product positioning helps build customer trust.
Highly interactive lots of communication between the buyer ad sellers.
Excellent for communicating complex /detailed product information and features
relationship can b built up important if closing the sale make at a long time.
Can stimulate quick increases by targeting promotional incentives on particular
products.
Good short term tactical tool
Often seen as more "credible" - since the message seems to be coming from a third
party (e.g. magazine, newspaper)
Cheap way of reaching many customers - if the publicity is achieved through the
right media
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Limitations of the Study
To carry out the research study the following limitations were expected and faced
during the
Availability of secondary data from sales records of the companies where difficult.
Management may not like to share their views on the topic.
Time and location factors become major difficulties in completion of research.
However, to overcome the limitations and maintain the effectiveness of research

work.
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Research Design
A research design used in the study is descriptive research design. Thus, the
descriptive research included surveys, questionnaires, observations and fact finding
enquiries of different kinds used in very comprehensive manner. The main purpose of
descriptive research is describing the state of affairs as it exists at present. The main
characteristic of this method is that the researcher has no control over the variables. He/she
can only report what is happening. In this descriptive research design, we get information
from most accessible population.
A research design is the specification of methods and procedure for acquiring the
information needed. It is the overall operation pattern or framework of the project that
stipulates what information is to be collected from which source by what procedure. It is
also refers to the blue print of the research process.
Typ es o f res e a r ch d es i g n
The following are the different types of research designs used in research process used by
the researcher.
Descriptive study
Exploratory study
Experimental study
Case study
Descriptive study
A descriptive study is undertaken in order to describe the characteristics of the

variables of interest in a situation.
The main objective of this study is to offer to the researcher a profile or to describe
relevant aspects of the phenomena of interest from an individual, organizational,
industry related, or any other perspective.
Ex: study of technological advantages of the company.
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Features:
This study describes the phenomena understudy
The data collected here may relate to the demographic or the behavioral variables
of the respondent understudy.
The research has got very specific objective, clear cut data requirements and uses a
large sample which is drawn through a probability sampling design.
The conclusions, recommendations, findings in a descriptive study are definite
Exploratory study
These studies carried out to explore a subject.
The main objective is to help in defining a research problem and generate a set of
hypothesis or research question.
An exploratory study is undertaken when not known about the situation at hand, or
no information is available on how similar problems have been solved in the past.
Exploratory research is undertaken to better comprehend the nature of the problem.
Extensive interviews with many respondents will be taken to understand and

handle the situation.
In some cases explorative studies are important for obtaining a good grasp of the
phenomena of interest and advancing knowledge through subsequent theory
building and hypothesis testing.
Experimental study
In this type of study the researcher tests the hypothesis of casual relationships
between variables.
These studies not only reduce bias and increase reliability.
These mostly concern with scientific investigations
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Since experimental designs originated in the context of agricultural operations, we

still use, though in a technical sense.
Case study
This type of study involves in-depth, contextual analysis of matters relating to

similar situation in real time organizational environment.
These will act like a problem solving tools for organizations.
This type of studies help organizations applying solutions to current problems

based on past problem-solving experiences.
They also useful in understanding certain phenomena.
For the present study I have adopted Exploratory design.
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Research Methodology
Research methodology is a purely and simply the framework or a plans for the study that
guides the collection and analysis of data. Research is the scientific way to solve the
problems and its increasingly used to improve market potential. This involves exploring the
possible methods, one by one, and arriving at the best solution, considering the resource s at
the disposal of research.
Research in common parlance refers to search for knowledge. In fact, research is an art
of scientific investigation. Research methodology is the science of collecting,
identifying and presenting facts in such a way that it leads to unearthing some truths or
angles of reality. Every project work is based on certain methodology, which is a way
to systematically solve the problem or attain its objectives. It is a very important
guideline and lead to completion of any project work through observation, data
collection and data analysis According to Clifford Woody, Research Methodology
comprises of defining & redefining problems, collecting, organizing &evaluating data,
making deductions &researching to conclusions. Accordingly, the methodology used
in the project is as follows:
Defining the objectives of the study
Framing of questionnaire keeping objectives in mind (considering the
objectives)
Feedback from the customers
Analysis of feedback
Conclusion, findings and suggestions.
Variable
Variable is a term frequently used in research projects. It is pertinent to define
and identify the variables while designing quantitative research projects. A variable incites
excitement in any research than constants. It is therefore critical for beginners in research
to have clarity about this term and the related concepts.
Variables can be defined in terms of measurable factors through a process of
operationalization. It will convert difficult concepts into easily understandable concepts
which then can be measured, empirically. It is essential to define the term as variables so
that they can be quantified and measured. That is, the variable have to be able to work for
you to operate, or becomes operational.
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There are different types of variables and having their influence differently in a study viz.
Independent & dependent variables, Active and attribute variables, Continuous, discrete
and categorical variable, Extraneous variables and Demographic variables.
Independent and Dependent Variables
The independent variable is the antecedent while the dependent variable is the
consequent. If the independent variable is an active variable then we manipulate the values
of the variable to study its affect on another variable. In the above example, we alter
anxiety level to see if responsiveness to pain reduction medication is enhanced. Anxiety
level is the active independent variable.
Dependent variable is the variable that is affected by the independent variable.

Responsiveness to pain reduction medication is the dependent variable in the above
example. The dependent variable is dependent on the independent variable
Independent variable: promotion mix strategies

Dependent variable: sales
Population
A population can be defined as including all people or items with the characteristic
one wish to understand. Because there is very rarely enough time or money to gather
information from everyone or everything in a population, the goal becomes finding
representative sample of that population.
Population for this study is all people using two wheelers
Sample size
It refers to the number of elements of the population taken for sample.
The sample size chosen for the survey is 100.
In order to take a reasonable sample size and not to disturb the functioning of the
organization, a sample size of reasonable strength of the Company has been taken
in order to get responses of working conditions in the Company.
Sample units consist of customers who purchase Hero bikes.
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Accordingly, 100 customers have been selected at random from all the customers
of the organization and feedback forms (questionnaire) have been obtained. The
data has been analyzed in order to get sufficient information about post purchase
behaviour of customers
Sampling Technique
Simple random sampling

In a simple random sample (SRS) of given size, all such subsets of the frame
are given an equal probability. Furthermore, any given pair of elements bas the same
chance of selection as any other such pair
Systematic sampling
Systematic sampling relies on arranging the study population according to
some ordering scheme and then selecting elements at regular intervals through that
ordered list. A simple example would be to select every 10 th name from the telephone
directory.
Stratified Sampling
Where the population embraces a number of distinct categories, the frame can
be organized by these categories into separate strata. Each stratum is then sampled
as an independent sub population, out of which individual elements can be randomly
selected.
Cluster sampling
Sometimes it is more cost effective to select respondents in groups (clusters).
Sampling is often clustered by geography, or by time periods. For instance, if
surveying households within a city, we might choose to select 100 city blocks and
then interview every household within the selected blocks.
Quota sampling
In quota sampling, the population is first segmented into mutually exclusive
Sub groups, just as in stratified sampling. Then judgement is used to select the
subjects or units from each segment based in a specified proportion.
Sampling technique used in this study
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Sampling random sampling method is adopted in the study and respondents are
random selected to collect opinion from them.
Types of Data
For the study purpose both primary and secondary data are used. The primary data
collected from sales men of the companies, customers and dealers dealing in the products
of the company. The secondary data collected from records of the company, retailers and
dealers. The data of past sales also have been collected. The primary and secondary data
have been collected to cover every aspect of the study. The primary data are related to
behaviour and response of employees, dealers and customers. The secondary data shows
the sales of the company product wise. These data used in combination as per need of the
study. These data having different merits and demerits and have serves our purpose of the
research study. These are explained below:
(a) Primary Data
Primary data are information collected by a researcher specifically for a research
assignment. In other words, primary data are information that a company must gather
because no one has compiled and published the information in a forum accessible to the
public. Companies generally take the time and allocate the resources required to gather
primary data only when a question, issue or problem presents itself that is sufficiently
important or unique that it warrants the expenditure necessary to gather the primary data.
Primary data are original in nature and directly related to the issue or problem and current
data. Primary data are the data which the researcher collects through various methods like
interviews, surveys, questionnaires etc.
Advantages of primary data:
The primary data are original and relevant to the topic of the research study so the
degree of accuracy is very high.
Primary data is that it can be collected from a number of ways like interviews,
telephone surveys, focus groups etc. It can be also collected across the national borders
through emails and posts. It can include a large population and wide geographical
coverage.
Moreover, primary data is current and it can better give a realistic view to the
researcher about the topic under consideration.
Reliability of primary data is very high because these are collected by the concerned
and reliable party.
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(b) Secondary Data

Secondary data are the data collected by a party not related to the research study
but collected these data for some other purpose and at different time in the past. If the
researcher uses these data then these become secondary data for the current users. These
may be available in written, typed or in electronic forms. A variety of secondary
information sources is available to the researcher gathering data on an industry, potential
product applications and the market place. Secondary data is also used to gain initial
insight into the research problem. Secondary data is classified in terms of its source
either internal or external. Internal, or in-house data, is secondary information acquired
within the organization where research is being carried out. External secondary data is
obtained from outside sources. There are various advantages and disadvantages of using
secondary data.
Advantages of Secondary Data:
The primary advantage of secondary data is that it is cheaper and faster to access.
Secondly, it provides a way to access the work of the best scholars all over the world.
Thirdly, secondary data gives a frame of mind to the researcher that in which direction
he/she should go for the specific research.
Fourthly secondary data save time, efforts and money and add to the value of the
research study.
Methodology for the study
The collection of data refers to a planned gathering of information relevant to the
subject matter of the study from the units under investigation. The method of collection of
data depends mainly upon the nature, objectives and scope of the inquiry on one hand and
available of resources and time on the other hand. Data may be classified into primary and
secondary data, depending upon the nature and mode of collection.
Primary source:-
Primary data is collected directly from the customers of Hero show room.
Primary data is collected through interaction with various respondents.
Secondary source:-
Secondary data collected from the published magazines and websites to collect the data.
The secondary data is collected form the following sources.
Business magazines
Journals
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Published Books
Websites
Company broachers and books
D a t a C o l l e c t i o n Tec h n i q u e s
1. Observation Methods
The method can be used to study sales techniques, customer movements,
customer response etc.
2. Experimentation Method
It may be used in the following situations:
What are they services providing post purchase of Hero bikes ?
3. Questionnaire Method
The survey method is the technique of gathering data by asking question from
people who are thoughts to have the desired information.
For this study Questionnaire method was adopted.
Tool for data analysis and interpretation
Measurement and evaluation of the data is done using statistical tools, techniques such as
Sample percentage method
Graphical representation
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LITERATURE REVIEW
Drucker (1999) noted that marketers use numerous tools to elicit response from
the target markets. These tools include: Place, Price, Products and Promotions also
referred to as 4Ps of marketing (McCarthy, 1996). Marketing mix decisions must be made
for influencing the trade channels as well as the final consumers and in return sales.
Typically a firm can change any of the marketing mix to achieve the desired
response from the potential buyers. For instance, a firm can change its price, sales force
size and advertising expenditures in the short run. It can develop new products and
modify its distribution channel only in the long run.
Kotler (2000) indicated that the 4Ps represent the sellers' view of the marketing
tools available for influencing buyers. From the buyers' point of view, each marketing tool
is designed to deliver a customers' benefit. Lauter(1990) suggested that the seller's 4Ps
correspond to the customer's four Cs that include: customer solution, cost, convenience and
communication.
Winning companies will be those who can meet customer needs economically and
conveniently and with effective communication. Marketing mix is a controllable factor
that the marketing manager can take to solve a marketing problem (Bekowitz (et 91),
1997).
This chapter in the research is the most essential one. It provides the second hand
information that is the information from secondary sources that help the researcher in the
research. The literature referred by the researcher and the findings implied in the research
are mentioned and written under this chapter. This chapter gives a brief review of some of
the researches conducted. In my research I used secondary data for information. The
review of my literature is as follow:-
Ali (2006) in his study consumer response to promotional schemes has concluded that
market has been flooded with promotional schemes that are essentially meant to existing
customers loyal which give an essence of consumer retention. An analytical approach has
been proposed to make a comparative study of the schemes as well as to study the
response under some well known schemes. As there are large number of schemes like
collect the points and win prizes , Discount coupons , Free offers , test drive , test ride in
case of Automobile sector . but consumer response is different in different situations . The
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study showed that discount / price cut schemes directly reaches and consumers are
satisfied with these schemes.
Bureau, from article structural constraints in equity master.com, 11 may 2002 found
that India is no.1 in the terms of irrigated land area, second in the arable lands and seventh
in the total area. The one way to improve productivity is to increase the level of
mechanization. In this article they look at the growth prospects of the tractor industry and
how it is closely correlated with the Indian agricultural sector consider the size of tractor
industry. The tractor market has more than double in the current decade. The first half of
the decade was characterized by aggregate volume of growth of more than 14% p.a. over
production and unremunerable pricing strategies followed by some of the lead players also
affect the overall growth of the sector. India is on rank 4 in the tractor market in overall
world and second in terms of volume of tractors. Punjab and Haryana are on top of the list
in tractor market.
Bureau, from article Automobiles in myris.com (2000) concluded that nine companies
mfrs. Tractors in the country. Sales are however, concentrated in the 20-50 hp segments
owing to the small size of the land holding in the country, M&M is industry leader in
terms of tractor. For range 41-50 hp, Escort is no .1 and M&M is on second place. India
has about 8 tractors per thousand hectares v/s the Asian average of 14. Potential demand
for tractors is consequently large with growth in agricultural output and productivity.
Bureau, from article Indian tractor industry to see flat growth this year, Zee news 8 Jan
2009 concluded that the Indian tractor industry in 2008-09 is unlikely to register growth
and sales are likely to be at 3 lac tractors same as what was achieved in 2007-08.
Mahindra sold 92000 tractors in last year and exported 8000.
Bureau, from article Tractor maker claims record export sales, Indiaforums.com 19 Apr
2009 concluded that ITL which sells tractors under the sonalika brand claimed it has
achieved highest export sales among all mfrs. In the country during 2008-09. The
company posted export sale of Rs.105 Crores. An increase of over 262% over the previous
year. it had earned Rs .40 crores from export in 2007-08
Diwan & Jain (2004) in their study brand positioning: The unbeatable weapon in present
market scenario concluded that right positioning can beat the competition because today
the markets are flooded with clones or sea of homogeneous products. Only way to cross
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this sea is to create and communicate a distinctive image which makes the customers
convinced to choose the brand over the competitors brand. An Effective brand positioning
strategy includes the needs of customers, product category, target segment, competition,
benefit, perception and brand personality. All this help in raising brand value.
Kathirvel (2009) in his study on satisfaction level of farmers towards production
marketing of agricultural product concluded that 47% of farmers are not satisfied and
49.2% of farmers are neither satisfied nor dissatisfied and only 3.8% are satisfied from the
marketing of agricultural product and majority of farmers are not in favour of using new
techniques for cultivation (98.6) only 4.4% using new techniques of cultivation. The size
of farm directly affects the output of agricultural product and when landholding increases
the satisfaction also increases. The govt. can pay attention by providing transportation
facilities, maintaining good roads and providing subsidies for fertilizers so that small and
medium farmers may be benefitted.
Kaushik (2004) in her article now come outsourcing of tractors MNCs drive exports by
18.5% concluded that the tractors sales up and now exported to foreign market and also at
good rate of 18.5% increase annually. Eicher group, the exports of tractor last year grow to
16100 unit from 13581 units in 2002-03. Some of new MNC entrant SAME deutz fahr
also has plans to develop India as an Export Hub.
Seth (2009) in his article in livemint concluded that tractor exports excluding production
at 2009 due to recession in foreign market, in this fiscal year tractor demand in India have
been 303882 units which represent a growth of 5% over the previous year. According to
Chaudhary who is also the President of Industry body Tractor Mfrs. Association, estimates
domestic tractor sales will grow between 5-8% in fiscal 2010.
Shrinivasan(2000) in her article Indian Tractor industry is ready to face the Chinese threat
concluded that 75% of Indians are involved in agriculture sector still it seems they are
being neglected . other than Haryana and Punjab , intensity of mechanization is also very
low due to some lending norms the policy makers will take into account the fact that the
tractor is a multi utility vehicle and therefore the revenues of a tractor owner are going to
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come in not from land of his own but also through contract farming or hiring of land for
production
Valson (2001) in his study on tractor industry, segmented into four categories based on
engine horse power less than 30hp, 31 to 40hp, 41-50hp and more than 50 hp. historically
the 31-50 hp segment contribute to over 50% of the market owing to the demand from the
northern state of India and finded some factors that drive the demand for tractors in India
like agricultural production and govt. procurement price directly affect the demand of
Tractors. Same as in the case of monsoon and credit policies of bank also directly affect
the demand of tractors. Some change factors occurred in other states like Gujarat, the
gross irrigated area has increased from 27% in 1989-90 to 335 in 1996-97. Now
companies take stress on 50 hp tractors instead of small tractors and second hand tractors
also attracted the demand of tractors in mind of consumers due to their Competitive price
for same segment.
Promotional elements
Berkowitz (et al.)(1997) defined promotion as a means of communication between
the seller and buyer. To communicate with consumers, a company can use one or more of
the promotional alternatives that is personal selling, advertising, sales promotion and public
relation
Sales promotion
Hardie (1991) explains that sales promotion gives a short-term inducement of
value offered to arouse interest in buying a good or service. It is offered to intermediaries
as well as consumers inform of coupons, rebates samples and sweepstakes'. Foskett (1999)
argues that sales promotions cannot be the sole basis for campaign because gains are
often temporary and sales drop off when the deal ends so that advertisement is often used
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to convert the customer who tried the product because of sales promotion into a long-term
buyer.
Kotler (1994) noted that if sales promotion is conducted continuously, they lose
their effect. Customers begin to delay until a coupon is offered or they question the product's
value.
When organizing sales promotion firms' can direct sales promotion to ultimate consumers,
that is, Consumer- oriented sales promotion to support a company's advertising and personal
selling.
On the the hand firms' can also direct their sales promotion to traders like the
wholesalers, retailers or distributors. This can be done by giving the traders allowances and
discounts. They can also carry out cooperative advertising whereby manufacturer pays a
percentage of the retailers local advertising expenses for advertising the manufacturer's
products and lastly, firms can train distributor sales forces to increase their performance
(Hardie, 1991).
Direct marketing
Kotler (2000) defined direct marketing as an interactive, marketing system that
uses one or more advertising media to effect a measurable response and/or a transaction at
any location. Hardie (1991) emphasized that sales produced through direct marketing are
growing rapidly. Today many direct marketers see direct marketing as playing a major role
that of building a long-term relationship with the customers.
Major channels for direct marketing

Direct marketers can use a number of channels for reaching prospects and
customers. These include face-to-face selling, direct mail, catalog, telemarketing, TV and
other direct-response media, kiosk marketing and online channels (Kotler, 2000).
i. Direct mail
Direct mail involves an organization sending an offer, announcement, reminder or
other item to a person at a particular address (Hardie, 1991). Women groups deal directly
with their customers and so giving an offer or making an announcement to the prospects
become easier.
ii. Catalog marketing
Catalog marketing occurs when companies mail one or more product catalog to
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select addresses. They may send full time merchandise catalog, specialty consumer
catalog, and business catalog usually in print form but sometimes in CDs, videos or online
(Kotler, 2000).
iii. Kiosk marketing
Some companies have designed customer order placing machine called kiosk in
contrast to vending machine, which dispense actual products. This can be important to
companies, which produce perishable commodities like women groups as the customer
without the need to travel the prospects ((Hardie, 2000).
iv. On-line marketing
In on-line marketing, the consumer, not the marketer gives permission and controls
the interaction as they decide what marketing information they receive about which
product and services under what condition (Kotler, 2000).
Foskett (1999) emphasized that on-line marketing will enable women groups to
adjust to market conditions by quickly add product to their offering change prices and
descriptions, it will also enable them to dialogue with consumers and learn from them
hence build strong relationship.
v. Public and ethical issues in direct marketing
Marketers using direct marketing as a their promotional tool experience various
ethical issues. For instance, many people find the increasing number of hard sell direct
marketing solicitation to be a nuisance (Kotler 2000). They dislike direct response TV
commercials that are too loud or too long and too insistent. Customers also complain
about unfairness, invasion of privacy. Women groups and other marketers should address
these issues as left untended may lead to increased negative consumer attitudes, consumer
response rate and calls for greater state and federal regulation (Hardie 2000).
Increasing the value of promotional elements
Foskett (1999) stresses that today's customers seek value from companies that
provide leading-edge products, hassle-free transactions at competitive prices and
customer intimacy. Promotion practices have changed dramatically to improve
transactions and increase customer intimacy by emphasizing long-term relationships and
increasing self-regulation.
Factors to consider when choosing promotional elements
A firm's promotional mix is the combination of one or more of the promotional elements
it chooses to use (Kotler, 2000).
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Target Audience
Gaunt, 1991) noted that promotional programs are directed to the ultimate consumer, to an
intermediary (retailer, wholesaler or industrial distributor) or to both. Promotional
programs directed to buyers or consumers' products use mass media. Kotler and
Armstrong (2004) supported that advertising directed to industrial buyers is used
selectively in trade publications, however, as industrial buyers have specialized needs or
technical questions.
Personal selling is particularly important as the sales person can provide information and
the necessary support after sales.
Product life cycle
All products have a product life cycle and the composition of the promotional mix changes
over the four life cycle stages.
i. Introductory stage
The promotional objective is to inform consumers in an effort to increase their
level of awareness. At this stage, all promotional mix elements are used but advertising is
particularly important as a means of reaching as many people as possible to build up
awareness and interest (Pierce and Robinson, 2000).
ii. Growth stage
Kotler and Armstrong (2004) noted that primary objective of promotional elements
is to persuade the consumers to buy the product. Advertising is the primary promotional
element used which stresses brand differences. Personal selling is used to solidify the
channel of distribution.
iii. Maturity stage
The need for promotion is to maintain existing buyers and advertising's role is to
remind buyers of the product's existence. The company also uses sales promotion like
discounts and coupons to maintain loyal buyers (Palmer, 2002). This enables women
groups to maintain their customers because if that is not done the consumers can switch to
other companies' products.
iv. Decline stage
At this stage little money is spent in the promotional mix as the product is phased
out (Kotler and Armstrong, 2004). Although Evans (1999) disagrees and says that women
group's products is not fashion oriented and so they do not have decline stage, which may
affect their choice of promotional elements.
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Production characteristics
According to Evans (1995) the proper blend of elements also depends on the type of
products. The characteristics include complexity, risks and ancillary services.
i. Complexity
It refers to the technical sophistication of the product and hence the amount of
understanding required using it. In this case greater emphasis is on personal selling. This
arouses the need to use promotional mix elements so that the potential consumers may not
fear trying the product. (Kotler, 2000).
ii. Risk
Risk for the buyer can be assessed in terms of financial risk, social risk and
physical risk. Advertising may be used but the greater the risk, the greater the need for
personal selling. For instance, women groups produce some "jikos" termed as "upesi jiko"
which are very delicate hence use of promotional elements will encourage the consumers
to try the product (Barnes, 1993 and Evans, 1995).
iii. Ancillary Services
James and Philips (1995) explain that the ancillary services pertains to the degree
of services or support required after sales. Advertising is used to establish the seller's
reputation. However, personal selling is essential to build buyer confidence and provide
evidence of consumer service.
Stages of the buying decision

Kotler (2000) noted that knowing the customer's stage of decision-making also
affects the choice of promotional Mix
i. Pre-purchase stages
In pre-purchase stage, advertising is more helpful than personal selling because
advertising informs the potential customer of the existence of the product and the seller.
Sales promotion in the form of free samples also can play an important role to gain low risk
trial (Kotler, 2000).
ii. Purchase stage
At this stage personal selling plays a greater role. Sales promotion in the form of
coupon, deals, point of purchase displays and rebates are very helpful in encouraging
demand (Ibid, 2000).
iii. Post purchase stage
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In this stage the buyer needs personal contact hence salesperson is important. Advertising
is also important to assure the buyer that the right purchase was made while sales
promotion in the form of coupons can help encourage repeat purchase from satisfied first-
time triers (Palmer, 2002).
Channel strategies
Kevin et al (2003) noted that promotional strategies assist in moving a product
through the channel of distribution. The manufacturer has to decide whether to use push,
pull or both in its channel of distribution.
i. Push strategy
In this approach, personal selling and sales promotion play a major role.
Salespeople call on wholesalers to encourage orders and provide sales assistance and this
increases purchase of products from women groups (James and Philip, 2001) as the
wholesalers will give order to the women groups.
ii. Pull strategy
The manufacturer directs its promotional mix to customers to encourage them to
ask retailers for the product. Seeing the demand from ultimate consumers, retailers order
the product from wholesalers (Hardie, 1999).
Integrated Marketing Communication

Kotler (1995) noted that in the past, the promotional elements were regarded as
separate functions handled by experts in separate departments. The sales force designed
and managed its activities independently of the advertising departments and sales
promotion and public relation were often the responsibility of outside agencies or
specialists.Today the concept of designing market communications program co-ordinate
all promotional cactivities to provide a consistent message across all audiences.
Many people have also carried out researches to find out if promotional elements
have influence on sales. For instance, Ndambuki (2000) did a research and found out that
indeed promotional elements have effect on sales which turned out to be different from
the findings of Ondiri (1998) who found out that there is no significant difference effect
on sales. However, the difference may have been caused by geographical difference as
Ndamuki (2000) did his research in rural setting while Ondiri carried out research in town
setting. Ndambuki's finding was also the same as (Kivuva, 2003) that, those products
23
which are on promotion tend to have more demand than those which do not. Due to
different findings which may have been caused by use of different organizations and
geographical differences, the researcher needs to find out if promotional elements can
have influence on sales among women group products.
24
Theoretical Framework
Introduction
Marketers have always been looking out for the best possible ways to communicate their
colorful and aesthetically designed ideas, messages to stimulate a desired response or
specific perception about their products/ services among the targeted group of customers.
There are several modes of communicating a message to the targeted audience. The
process of assembling of the idea, message, design, media, color and form is known as
Communication Mix. In order to gather this communication mix, organizations have a
variety of tools to choose from as shown in the figure above. The tool could be any one or
a combination of few. Communication Mix is also referred to as Promotion Mix. It
helps in not just spreading awareness about the manufacturers product but also
stimulating the customers to make purchases.
Sales Promotion is one such tool; Advertising, Personal Selling, Direct Marketing and
Public Relations are the rest of them. Each one has a specific purpose to serve, objective to
accomplish. They are used at different points in time during a products life cycle.
In order to increase their sales, trial or usage of a product or service, organizations make
use of initiatives such as Sales Promotion. It is essentially an inducement, a direct and
immediate one that prompts the customer/ dealer to buy the product. It does so by adding
extra value in the product than what is actually available at its normal price. The offers are
made at such places and usually at the time when the buying decisions are being made.
Sales promotion can hence be referred to as activities that offer incentive and create
interest. Generally, these activities are events that are short-term in nature. Some of the
objectives of sales promotion are to motivate and influence the customers purchase,
stimulate particular behavioral reactions from them.
With respect to the picture below, sales promotion can be understood as an incentive to
induce, persuade and motivate the customers to purchase products immediately since such
offers, promotions and schemes are available only for a short period of time.
In the light of the present competitive market conditions, sales promotions are very
common and are increasing at a very fast pace. In spite of the directness of Sales
promotion, it is considered to be fairly complicated. It is also known to be a useful tool of
25
marketing with numerous possibilities of creativity limited only by the promotion

planners imagination. Some common names by which Sales promotion is often referred
to are extra purchase value and below-the-line selling. In other words, Sales Promotion
can also be defined as techniques and incentives directed towards traders, dealers and
customers with a view to induce immediate or short-term sales effects.
The committee on definitions of the American Marketing Association (AMA) defines sales
promotion as follows:
In a specific sense, sales promotion includes those sales activities that supplement both
personal selling and advertising, and coordinate them and make them effective, such as
displays, shows, demonstrations and other non-recurrent selling efforts not in the ordinary
routine.
The AMA, in its Web-based "Dictionary of Marketing Terms," defines sales promotion as
follows.
"Media and non-media marketing pressure applied for a predetermined, limited period of
time in order to stimulate trial, increase consumer demand, or improve product
availability."
Some other definitions of sales promotion are:
"Sales promotion means any steps that are taken for the purpose of obtaining or increasing
sales."(A. H. R. Delons)
"Muddled misused misunderstood that is sales promotion.(W. Q. Kelly) According to

him, the field of sales promotion as a marketing activity, is still vaguely defined and
organized.
Examples of sales promotions can be seen anywhere and everywhere. A freestanding insert
in the Sunday newspaper may contain a coupon offering 10% off Caf Coffee Day coffee.
E-mail from ebay.com may offer free shipping on your next purchase over Rs. 5000. A
point-of-purchase display in the local market tempts impulse buyers with a stack of Real
Fruit Juice. An executive may buy a new mobile phone and get an accessory free. Hence,
26
we can summarize that strong and early responses can be stimulated through Sales
Promotion.
Sales promotion refers to short term use of incentives or other promotional activities that
stimulate the customer to buy the product. Sales promotion techniques are very useful
because they bring:
(a) Short and immediate effect on sale.
(b) Stock clearance is possible with sales promotion.
(c) Sales promotion techniques induce customers as well as distribution channels.
(d) Sales promotion techniques help to win over the competitor.
Sales Promotion Techniques for Customers:
Some of the sales promotion activities commonly used by the marketer to increase the sale
are:
(i) Rebate:
It refers to selling product at a special price which is less than the original price for a
limited period of time. This offer is given to clear off the stock or excessive inventory for
example; coke announced 2 liter bottles at Rs 35 only.
27
(ii) Discounts:
This refers to reduction of certain percentage of price from list price for a limited period of
time. The discounts induce the customers to buy and to buy more. Generally at the end of
season big companies offer their products at discounted price to clear off the stock e.g.,
seasons sale at Snow-White Jain Sons, Paul Garments, Bhuvan Garments, etc.
(iii) Refunds:
This refers to refund or part of price paid by customer on presenting the proof of purchase
for example, Rs 2 off on presentation of empty pack of Ruffle Lays.
(iv) Premiums or Gifts/or Product Combination:
These are most popular and commonly used promotion tool. It refers to giving a free gift
on purchase of the product. Generally the free gift is related to product but it is not
necessary for example, Mug free with Bourn vita, Shaker free with Coffee, Toothbrush
free with Toothpaste, etc.
(v) Quantity Deals:
It refers to offer of extra quantity in a special package at less price or on extra purchase
some quantity free for example, buy three get one free e.g., this scheme of buy three get
one free scheme is available on soaps.
(vi) Samples:
It refers to distribution of free samples of product to the customers. These are distributed
when the seller wants the customer must try the product. Generally when a new product is
launched for example, when Hindustan Level launched Surf Excel it distributed the
samples as it wanted the customers to try it.
(vii) Contests:
It refers to participation of consumers in competitive events organised by the firm and

winners are given some reward for example, Camlin Company organizes painting
28
competition, Bourn vita quiz contest and some companies organise contest of writing
slogans and best slogan is awarded prize.
(viii) Instant Draws and Assigned Gifts:
It includes the offers like scratch a card and win instantly a refrigerator, car, T-shirt,
computer etc.
(ix) Lucky Draw:
In this draws are taken out by including the bill number or names of customers who have
purchased the goods and lucky winner gets free car, computer, A.C., T.V., etc. Draw can be
taken out daily, weekly, monthly, etc.
(x) Usable Benefits:
This includes offers like Purchase goods worth Rs 5000 and get a holiday package or get
a discount voucher, etc.
(xi) Full Finance @ 0%:
Many marketers offer 0% interest on financing of consumer durable goods like washing
machine, T.V. etc. e.g., 24 easy installments 6 paid as front payment and remaining 18
with post-dated cheques. In these types of scheme customers should be careful about the
file charges etc.
(xii) Packaged Premium:
In this type of sales promotion the free gift is kept inside the pack. The gift is kept in
limited products but the excitement of getting the gift induces the customer to buy the
product for example, gold pendant in soap, gold coin in Tata tea etc.
(xiii) Container Premium:
This refers to use of special container or boxes to pack the products which could be reused
by the customer for example, Pet Bottles for Cold Drinks. This bottles can be used for
29
Steering Water, Plastic Jars for Bourn vita, Maltova, etc. which can be reused by the
housewives in kitchen.
Merits of Sales Promotion:
1. Attention Value:
The incentives offered in sales promotion attract attention of the people.
2. Useful in New Product Launch:
The sales promotion techniques are very helpful in introducing the new product as it
induces people to try new products as they are available at low price or sometimes as free
sample.
3. Synergy in Total Promotion Efforts:
Sales promotion activities supplement advertising and personal selling efforts of the
company. Sales promotion adds to the effectiveness of advertisement efforts.
4. Aid to other Promotion Tools:
Sales promotion technique makes other promotion techniques more effective. Salesmen
find it easy to sell products on which incentives are available.
30
Demerits of Sales Promotion:
1. Reflect Crisis:
If firm is offering sales promotion techniques again and again it indicates that there is no
demand of product which can create crisis situation.
2. Spoil Product Image:
Use of sales promotion tool may affect the image of product as buyer feel that product is
of low quality that is why firm is offering incentives.
31
Company profile
The Sonalika Group is an Indian multinational company headquartered in

Hoshiarpur(PUNJAB), India and is active mainly in the automobile sector.
The Sonalika Group is headed by Lakshman Das Mittal.
International Tractors Limited is the major company, involved in manufacturing

and exporting tractors, Farm Equipments and accessories.[1]
International Cars And Motors Ltd. (ICML) manufactures MUVs, and was
established in 2004 with the capacity to manufacture 2000 vehicles in a month.[2]
Sonalika Agro Industries Corporation was established in 1969 to support the

Indian farmers with mechanization technology to facilitate persistence of green
revolution.[citation needed]
International Autotrac Finance Ltd is a non banking finance company approved

by the Reserve Bank of India. The company provides finance to Indian customers
situated in rural and semi urban areas with different schemes.
Sonalika International Tractors Ltd. is the countrys heavy duty tractor manufacturing
company that produces bestselling tractors between 20 HP to 110 HP. Today, Sonalika ITL
is countries 3rd largest tractor maker. Sonalika ITL is recognized in both domestic and
international market as a formidable player. The company has earned the trust of over 6
32
lakhs patrons in more than 100 countries across the globe. It is today present in 20
European countries and is a popular brand internationally.
Sonalika Group
Industry Automobile
Founded 1969
Founder Lakshman Das Mittal
Headquarters India
Area served Worldwide
Products Tractors, multi-utility

vehicles, engines, farm machinery
attachments, diesel gensets, auto
components and pick & carry
cranes.
Number of 5000
employees
Website http://www.sonalika.com
Sonalika International Tractors Ltd. is the countrys heavy duty tractor manufacturing
company that produces bestselling tractors between 20 HP to 110 HP. Today, Sonalika ITL
is the third largest player. Sonalika ITL is recognized in both domestic and international
33
market as a formidable player. The company has earned the trust of over 6 lakhs patrons in
more than 100 countries across the globe. It is today, the only Indian company present in
20 European countries and is most preferred tractor company internationally.
Sonalika ITL boasts of State-of-the-art integrated tractor

manufacturing plant, situated in Hoshiarpur with a capacity of
manufacturing approximately 2 lakh tractors. The company has
strategic partnerships with Blackstone PE and Yanmar, Japan.
Vision
Sonalika ITLs vision is to become the worlds leading tractor manufacturing and farm
mechanization company.
To be the best in customer satisfaction by being customer focussed and aligning systems
and processes that develops and delivers high quality, innovative products at competitive
price
Jisne sapna nahin dekha use bhi sapna dikhana hai
Gali Gali Sonalika pahunchaana hai
Core Values
Sonalika ITL is committed to its core values to serve its patrons with passion and deliver
quality, the company strives to build a relationship based on trust and promotes team work
and innovation amongst its employees.
Global presence :-
A key element of ITLs growth is its strong commitment to the global marketplace. We
constantly align our production platform in response to customer demand. As a result the
company is making its presence felt in more than 100 countries across all continents and
its international opportunities and pursuits are growing. The global recognition of ITLs
growth has been highlighted by strategic investment into the Group by leading
international brands like Yanmar of Japan and Private Equity Partner, Black Stone of
Singapore. Through world class integrated manufacturing facility, a well-equipped
research and development center, a robust dealership network, consistency in our quality
34
of products and services and our customer centric approach, we are aiming to become a
well-respected global player.
Our competencies :-
Since its inception in 1996, Sonalika ITL has come across a long way and has today
become the third largest tractor manufacturer in India. Owing to its customer centric
approach, Sonalika has registered its success globally through sheer dedication towards
serving farmers and making their lives easier. Sonalika understands the needs of the
farmers and provides them tailor made farm mechanized solutions.
Sonalika realizes its strength in imbibing trust and confidence amongst its stakeholders i.e.
farmers, employees, business associates etc. and has never been afraid of trying new ideas
to meet the challenging demands of the future. Sonalika is known for its aftersales services
and community engagement initiatives. The company is open to exploring new avenues
for business growth and improving the lives of the farmers.
In order to reach out to the farmers in a better way, Sonalika has also set up training
centers for farmers to provide training on proper usage of tractors and farm implements.
35
Initiatives for Success
Thinking out of the box

Trying out new ideas in practice
Finding new avenues for delivery and market penetration
Developing new ideas to meet the challenging demands of the future
Attention to details
Understanding the basics and need of the farmers
Providing tailor made farm mechanization solutions
CSR
Sonalika has been into philanthropic activities much before the

government made it mandatory for organizations to plough back 2% of
their net profit towards upliftment of society. Always burning with a
desire to make a proactive change in the society and environment they
have taken several initiatives over the years in Hoshiarpur to improve
the lives of people through various initiatives.
Under the ardent leadership of Mr. Deepak Mittal whose philanthropic interest has led to
initiation of CSR activities, Sonalika ITL, over the last 14 years have been working pro-
actively in Hoshiarpur. Amongst their many ventures, is the Clean and Green project
where they have adopted 30 colonies in the city and have launched garbage cleaning
activity and maintenance of the green environment around. The program is done through
engaging the community who enthusiastically participate in running it on ground with
Sonalika ITL. Today, this thought is well aligned with Prime Ministers vision of Swatch
Bharat Abhiyan. Armed with an ISO certification for one of the adopted colonies, and
36
going at the current rate, they have added 2 more colonies to the existing list this year.
Today Hoshiarpur is among the cleanest city of Punjab.
Another interesting initiative they have started is planting a tree in one familys name and
having their names painted on it. The tress are planted in parks which are in front of their
houses which inevitably attracts the interest of housemates so that they start taking care of
it. This too has got an active participation from the residents and has become a huge
success. The tree plantation drive has created an awareness among the local population to
keep their environment clean and green.
Project clean & green
Sonalika Group not only produces world class tractors and farm equipments, it is also
committed to promote best environment protection practices as part of Corporate Social
Responsibility (CSR). In 2004, the Group took lead in inviting leading industrialists of
Hoshiarpur and formed the Clean & Green Association (CGA). Throughout the year, CGA
organises cleanliness and plantation drives in different parts of Hoshiarpur city "The main
purpose of organising these drives is to create awareness among residents about the
37
benefits of clean and green environ," says Mr. A.S. Mittal, Vice Chairman of the Sonalika
Group.
Industry profile
Tractors in India is a major industry and significant contributor to its agriculture output
gains.[3][4]
In 1947, as India gained independence from British colonial empire, the level of
agriculture mechanisation was low. The socialist oriented five-year plans of the 1950s and
'60s aggressively promoted rural mechanisation via joint ventures and tie-ups between
local industrialists and international tractor manufacturers. Despite these efforts, the first
three decades after independence local production of 4-wheel tractors grew slowly. By the
late 1980s tractor production was nearly 140,000 units per year, and a prevalence rate of
less than 2 per 1,000 farmers.
After economic reforms of 1991, the pace of change increased and by late 1990s with
production approached 270,000 per year. In early 2000s, India overtook the United States
as the world's largest producer of four-wheel tractors. FAO estimated, in 1999, that of total
agricultural area in India, less than 50% is under mechanised land preparation, indicating
large opportunities still exist for agricultural mechanisation.[5]
In 2013, India produced 619,000 tractors accounting for 29% of world's output, as the
world's largest producer and market for tractors.[6][7] India currently has 16 domestic and 4
multinational corporations manufacturing tractors.
History of tractors in India[edit]

1945 to 1960[edit]
War surplus tractors and bulldozers were imported for land reclamation and cultivation in
mid-1940s. In 1947 central and state tractor organisations were set up to develop and
promote the supply and use of tractors in agriculture and up to 1960, the demand was met
entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and
37,000 by 1960.
38
1961 to 1970[edit]
Local production began in 1961 with five manufacturers(Eicher, Gujarat Tractors, TAFE,
Escorts, M&M) producing a total of 880 units per year. By 1965 this had increased to over
5000 units per year and the total in use had risen to over 52,000. By 1970 annual
production had exceeded 20,000 units with over 146,000 units working in the country.
1971 to 1980[edit]
Six new manufacturers were established during this period although three companies
(Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. HMT, a large
public sector unit, began manufacturing Agricultural Tractors in 1972 under the HMT
brand name with technology acquired from Zetor of the Czech Republic. Escorts Ltd.
began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total
production climbed steadily to 33,000 in 1975-76
1981 to 1990[edit]
A further five manufacturers(Auto Tractors, Haryana Tractors, United Auto Tractors,

Asian Tractors, VST Tillers) began production during this period but only Last one
survived in the increasingly competitive market place. Annual production exceeded 75,000
units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million.
Then India - a net importer up to the mid-seventies - became an exporter in the 1980s
mainly to countries in Africa.
1991 to 1997[edit]
Since 1992, it has not been necessary to obtain an industrial license for tractor
manufacture in India. By 1997 annual production exceeded 255,000 units and the national
tractor population had passed the two million mark. India now emerged as one of the
world leaders in wheeled tractor production.
1997 to 1999[edit]
give new manufacturers started production in this period. In 1998 Bajaj Tempo, later
renamed Force Motors, began tractor production in Pune. In April of the same year New
Holland Tractor (India) Ltd launched production of 70 hp tractors with matching
equipment by investing $US 75 million in a state-of-the-art plant at Greater Noida in Uttar
Pradesh state with an initial capacity of 35000 units per year. Also during this time, Larsen
and Toubro established a joint venture with John Deere, USA for the manufacture of 35-
65 hp tractors at a plant in Pune, Maharashtra. And Greeves Ltd began producing tractors
39
under similar arrangements with Deutz-Fahr of Italy. CASE now Case IH looking to
develop a joint venture in India went into discussions with various Indian companies and
in 1999 settled with New Holland Pvt Ltd. India for manufacturing CASE brand tractors
and harvesting equipment at New Holland's facility.
1999 to present[edit]
Facing market saturation in the traditional markets of the north west (Punjab, Haryana,
Western Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went
below 200,000. Manufacturers expanded into eastern and southern India markets in an
attempt to reverse the decline, and began exploring the potential for overseas markets.
In 2013, India produced 619,000 tractors accounting for 29% of world's output. It is the
world's largest producer and market for tractors.[8][9] India currently has 16 domestic and 4
multinational corporations manufacturing tractors.
Prevalence and market share[edit]
Tractors are getting widespread acceptance in India. Kotaks and ICRA reports estimate
that nearly 4.3 million tractors were in operation, and 1 in 20 rural households owned a
tractor in 2011. They project that the market will grow at 7% to 8% per year, and only
19% of Indian rural farming households that can afford a tractor have as yet purchased a
unit. Designs that allow multifunctional use, adapted to local needs and rural constraints,
are experiencing higher demands. Five companies account for over 80% of the market
share - Mahindra and Mahindra (largest at 40% share), TAFE, Escorts, ITL-Sonalika, and
John Deere.
Sonalika[edit]
Main article: Sonalika Tractors
International Tractors Limited was incorporated on 17 October 1987 and began
manufacturing tractors designed by Central Mechanical Engineering Research Institute
(CMERI). Its engines were initially designed on the successful HMT brand of engines, and
gearbox as per Punjab Tractor Limited design (now known as Swaraj (now owned by
Mahindra & Mahindra Ltd ). In 2000 ITL entered into a tie up with Renault Agricultural of
France and began manufacturing Sonalika tractors. Sonalika is currently manufacturing
models between 18 HP to 120 HP, and as well as the Renault CERES brand between
60HP to 90HP. Renault Agriculture is a subsidiary of the Renault Group. Renault
Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has
a strong presence in India market producing its Crop Tiger range of Combine Harvesters
in a plant in Faridabad (near New Delhi) since 1992. CLAAS opened a new plant in
Punjab at Morinda in 2006. In 2005 Yanmar bought a 13 per cent stake in the company
and began lifted production to 200 tractors per day. today Yanmar has approximately 16%.
In 2013 the worlds largest private investment company USD based Blackrock purchased
40
approximately 13% stake in ITL with the remaining 70 owned by founder Lachhman Das
Mittal.
Tractor Manufacturers Association[edit]
The Tractor Manufacturers' Association of India (TMA) is housed under

The Confederation of Indian Industry (CII), New Delhi. Though not all manufacturers are
members TMA is recognised as the main trade group representing the agricultural tractor
industry in India. TR Kesavan, COO - Product Strategy and Corporate Relations, TAFE -
Tractors and Farm Equipment Limited is the current President of TMA.
41
DATA ANALYSIS AND INTERPRETATION

Data analysis is an important part in any of the research as it fulfills the purpose for which
research is made. In this chapter analysis of every question asked from consumer through
the questionnaire is done. In this part of my study the analysis of data is done from the
basis of information collected through the questionnaire with the help of table and graphs.
TABLE 4.1
Brand owned by the targeted consumers of tractors
Brand % age
Sonalika 6
Escort/ford 30
Mahindra & Mahindra 28
Tafe/Massey 20
Swaraj 14
John deere 2
35 30
30 28
25 20
20 14
15
10 6
5 2
0
FIGURE -4.1a
INTERPRETATION
From our research on the tractor users we find that mostly people owned the Escort
tractors and Mahindra & Mahindra tractors.
TABLE 4.2
42
PURPOSE OF USING THE TRACTOR
Agriculture % Industial % Loading/unloading %
94 4 2
2 1
Agriciulture Industial Loading/unloading
47
FIGURE 4.2a
INTERPRETATION
In our study on comparative analysis, we find that most of the people using tractors for
agricultural purposes and some of the users using tractor as loading and unloading of
sands, bricks etc like thing and some small entrepreneurs using for industrial purposes.
TABLE -4.3
MAIN COSIDERATION WHILE PURCHASING TRACTORS
43
Consideration % age
Price 4
Performance 90
Quality -
Brand image 6
100
90
80
70
60
50
40
30
20
10
0
Price Performance Quality Brand image
FIGURE 4.3a
INTERPRETATION
The main consideration of buying the tractors is performance they not bother about the
price as shown above on the figures and same in case of brand image and quality because
performance automatically deals with quality.
TABLE 4.4
HORSE POWER OF TRACTORS
30-40 40-50 50-60

44
28 40 32
30-40 HP 40-50 HP 50-60 HP
FIGURE 4.4a
INTERPRETATION
Generally people uses the tractors between 40-50 horse power range due to less cost of
these tractors and less expenses on maintenance near about 32% respondents uses more
than these limits but about 40% using between above said limits.
TABLE4. 5
COST INCURRED ON TRACTORS
Cost % age
2-4 lacs 28
4.6 lacs 64
45
>6 lacs 8
Cost
2-4 lacs 4-6 lacs >6 lacs
FIGURE 4.5a
INTERPRETATION
Around 54% respondents using the tractor costing 4 to 6 lacs and 28 % respondents using
2 to 4 lacs range tractors. Very few from our sample space using tractor costing more than
6 lacs
46
TABLE 4.6
AWARENESS LEVEL OF SONALIKA TRACTORS
Awareness level % age

Yes 100
No -
Awareness level
Yes No
FIGURE 4.6a
47
INTERPRETATION
Almost all the respondents are aware of the Sonalika tractors. They know about the brand
of these tractors they basically like DI 740 III.
TABLE 4.7
SOURCE OF INFORMATION ABOUT SONALIKA TRACTORS
Source of information % age

Newspaper -
Television 4
Displays 42
Social network 32
Dealers 22
45
40
35
30
25
20
15
10
0
Newspaper Television Displays Social network Dealers
48
FIGURE 4.7a
INTERPRTATION
The respondents basically know from the displays and their social network like relatives
and friends. Respondents are less aware about the ads in newspapers.
TABLE 4.8
FACTOR OF DISTINCTION AT THE TIME OF THE PURCHASE OF THE
TRACTORS
Factor Of Distinction % age

Price 4
Promotional scheme 6
Engine performance 70
Technical advancement 20
49
factor of distinction
4% 6%
20%
Price Promotional scheme Engine performance Technical advancement
70%
FIGURE 4.8a
INTERPRETATION
Basically the respondents like the engine performance at the time of the purchase of
tractors only 4 % people go for the prices.
TABLE 4.9
BRAND PREFERANCES BY THE RESPONDENTS
PREFERENCE % AGE
Sonalika 24
Farmtrac/ Escort 40
Mahindra & Mahindra 20
Eicher 2
Swaraj 8
John deere 6
50
40
35
30
25
20
15
10
5
0
FIGURE 4.9a
INTERPRETATION
Around 40% people preferred farmtrac/escorts tractors and 24% preferred sonalika and 20
% Mahindra and Mahindra
TABLE 4.10
SATISFACTION LEVEL OF THE TRACTOR USERS WITH THEIR PRESENT
TRACTORS
51
excellent satisfactory good poor Very poor

52 42 6 - -
60
50
40
30
Column2
20
10
0
excellent satisfactory good
FIGURE 4.10a
TABLE 4.11
52
FUTHER EXPECTATION IN NEW TRACTORS MODEL

SPECIFICATION %age
GEAR SYSTEM 14
ENGINE EFFI. 26
ACESSORIES 16
HYDRAULICS LIFTMENT 10
MILEAGE 34
35
30
25
20
15
10
5
0
FIGURE 4.11a
INTERPRETATION
Basically people want new modification in engine efficiency and mostly people go for
developments in mileage.
Findings
53
From the study this is to be found that 32% of customers felt that they identified
advertisement in purchasing the Hero bike, 30% publicity, 23% sales promotion,
1% personal selling, 3% direct marketing, 9% word of mouth, 2% events and
exhibition.
From the study this is to be found that 91% of customers feel that the paper
presentation of Hero Moto Corp is effective.
From the study this is to be found that 80% of customers feel that the media
advertisement of Hero Moto Corp made them to purchase the product.
From the study this is to be found that 71% of customers feel that the publicity of
Hero Moto Corp is effective in promoting the product.
From the study this is to be found that 61% of customers agree that the
promotional offers of Hero Moto Corp are attractive and made them to purchase.
From the study this is to be found that 42% of customers agree that the payment
methods of Hero Moto Corp are effective.
From the study this is to be found that 36% of customers received mails or phone
calls from Hero Moto Corp as part of promoting their product.
From the study this is to be found that 46% of customers agreed that the sales
person directly approached them for the promotion of their product.
From the study this is to be found that 52% of customers received messages and
advices from their friends about purchasing Hero Moto Corp products.
From the study this is to be found that 75% of customers feel that the role of
personal selling maintained by Hero Moto Corp in promoting their products is
effective.
From the study this is to be found that 79% of customers feel that the exhibition of
the product of Hero Moto Corp is attractive.
From the study this is to be found that79% of customers feel that the demo of the
product of Hero Moto Corp helps to know about the product.
From the study this is to be found that 53% of customers rated that the overall
effectiveness of promotion mix maintaining by Hero Moto Corp is very effective,
44% rated effective and 3% as neutral.
Suggestions
Through tractor market is highly competitive in India and Sonalika is relatively new
brand. Hence Sonalika need a strong positioning. As sonalika tractor is capable of pulling
more load and unbeatable and unchallengeable features. Sonalika must be positioned as a
tractor, which is most economical and ideal for heavy load work.
54
Product awareness:
For promotion of a new product awareness is most important factor. As all the farmers
contacted are aware of sonalika tractors and their features and specifications. This can be
done through organizing kisan melas, exhibitions and effective demonstration at village
level.
Here opinion leaders can play a vital role. Opinion leader is a person whose opinion is
given high weight age by common people like sarpanchs. Company should also
concentrate on this factor.
Besides these points we would like to suggest few more things:
More & more emphasis on R & D must be given
Spare parts must be easily available for different models of tractors
Become a cost leader in field of tractors
Provide better after sale service to develop better relation with dealers
.
55
Conclusion.
Sonalika has various advantages over its competitors such as low initial cost, low fuel
consumption, high speed, low maintenance cost, & easy availability.
As tractor is meant for pulling load, sonalika has all these qualities to pull maximum load
due to high backup torque
People prefer farmtrac / ford tractors as per our research study and people like engine
performance as the main consideration of purchasing tractors.
They basically affected by the displays in providing information regarding new products
so company should create some awareness regarding this and make some hording on roads
to attract tractor users with new features mention on it.
Respondents are basically from village sides so they are not affected by the newspapers,
because in their daily life they never spent time on newspaper and their purchasing
decision followed by dealers, social network and hoardings.
Clearly, sales promotion plays an important role in total promotion mix. To use it well, the
marketer must define the sales promotion objectives, select the best tools, design the sales
promotion program, implement the program, and evaluate the results. Moreover, sales
promotion must be coordinated carefully with other promotion mix elements within the
integrated marketing communications program
56
QUESTIONNAIRE
Demographic Information:
1 Name: ___________________________________.
2 Age:
a 18-20 b) 20-25 c) 25-30 d) 30-35 above
3 Profession:
a Student b) Employee c) Business d) Others
4 Income per month (In Rupees):
a 10000-20000 b) 20001-30000 c) 30001-40000 d) 40001-50000
Questions related to Sales Promotion
1) Which brand of tractor you are currently using?
Sonalika Escorts Mahindra & Mahindra Tafe Swaraj

John Deere New Holland
Please Mention companys particular brand name of tractor
.
2) For which purpose you are using tractor?
Agriculture Industrial purpose Loading Unloading
3) During purchase of tractor what was your consideration?
Price Performance Quality Brand Image
After Sale Services Hydraulic liftment power Mileage Hp
4) How much horse power is it? Mention
5) What cost did you incurred to procure it?
2-4lac 4-6lac More than 6lac
6) Are you satisfied with the features provided by company in your tractor?
Yes No
If no then reason is
7) Are you aware of sonalika tractors?
Yes No
8)If yes, how did you come to know about sonalika tractors?
Newspapers Television Displays Friends/Relatives

Festivals/Social functions Dealers
09) Is after sale service of this product is easily available to you in near market?
57
Yes No
10) Are you satisfied with after sale service provide by company?
Yes No
11) From which factor you feel that this companys tractor is different from another
companys
tractors?
Price Promotional schemes Engine performance
Technical advancement any other specifies ..
12) Rate your preferences among the different brands of tractors?
Sonalika Farmtrac Mahindra & Mahindra Eicher

Swaraj
John Deere Ford Any other
mention.
13) How has been the performance of your tractor?
Excellent Satisfactory Good Poor Very poor
14) What will you think that this tractor fulfill your all requirements?
Strongly Agree Agree Cant says Disagree Strongly
Disagree
15) What kind of development you want to have in new model?

Gear System Engine Efficiency Availability of Accessories
Hydraulic Liftment Efficiency Mileage Any Other
Any suggestions
BIBLIOGRAPHY
58
1. WWW.SONALIKA.COM
2. SEARCH ENGINE (GOOGLE AND YAHOO)
3. SONALIKA LIBRARY
4. MAGAZINES (INDIA TODAY)AND JOURNALS
5. NEWSPAPERS
59

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Sales promotion on Sonalika Tractors

Objectives of the study

To study about the sales promotion on sonalika tractors at nandyal .

To examine the factors establishes and increases levels of sales promotion

Need of the Study

Scope of the Study

Good for building awareness effective at reaching wide audience.

Limitations of the Study

Management may not like to share their views on the topic.

Time and location factors become major difficulties in completion of research.

However, to overcome the limitations and maintain the effectiveness of research

A descriptive study is undertaken in order to describe the characteristics of the

Ex: study of technological advantages of the company.

This study describes the phenomena understudy

The conclusions, recommendations, findings in a descriptive study are definite

These studies carried out to explore a subject.

Exploratory research is undertaken to better comprehend the nature of the problem.

Extensive interviews with many respondents will be taken to understand and

These studies not only reduce bias and increase reliability.

These mostly concern with scientific investigations

Since experimental designs originated in the context of agricultural operations, we

This type of study involves in-depth, contextual analysis of matters relating to

These will act like a problem solving tools for organizations.

This type of studies help organizations applying solutions to current problems

They also useful in understanding certain phenomena.

For the present study I have adopted Exploratory design.

Independent and Dependent Variables

Dependent variable is the variable that is affected by the independent variable.

Independent variable: promotion mix strategies

Simple random sampling

(b) Secondary Data

Major channels for direct marketing

Stages of the buying decision

Integrated Marketing Communication

marketing with numerous possibilities of creativity limited only by the promotion

Some other definitions of sales promotion are:

"Muddled misused misunderstood that is sales promotion.(W. Q. Kelly) According to

(a) Short and immediate effect on sale.

(b) Stock clearance is possible with sales promotion.

(c) Sales promotion techniques induce customers as well as distribution channels.

(d) Sales promotion techniques help to win over the competitor.

Sales Promotion Techniques for Customers:

(iv) Premiums or Gifts/or Product Combination:

(v) Quantity Deals:

It refers to participation of consumers in competitive events organised by the firm and

(viii) Instant Draws and Assigned Gifts:

(ix) Lucky Draw:

(x) Usable Benefits:

(xi) Full Finance @ 0%:

(xii) Packaged Premium:

(xiii) Container Premium:

Merits of Sales Promotion:

The incentives offered in sales promotion attract attention of the people.

2. Useful in New Product Launch:

3. Synergy in Total Promotion Efforts:

4. Aid to other Promotion Tools:

Demerits of Sales Promotion:

2. Spoil Product Image:

The Sonalika Group is an Indian multinational company headquartered in

International Tractors Limited is the major company, involved in manufacturing

Sonalika Agro Industries Corporation was established in 1969 to support the

International Autotrac Finance Ltd is a non banking finance company approved

European countries and is a popular brand internationally.