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Hero Motocorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On 4th June 2012,Hero Motocorp approved a proposal to merge the investment arm of its parent-Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split from Honda Motor. Termination of Honda joint venture Main article: Hero Honda split In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone. Hero MotoCorp The new brand identity and logo, Hero MotoCorp, was developed by the London firm Wolff Olin‟s. The logo was revealed on 9 August 2011 in London, the day before the third test match between England and India. Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use any vendors for its components instead of just Hondaapproved vendors. Company performance During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market. Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together. Hero Honda's bike hero splendor pro sells more than one million units per year. On 1st June 2012, Hero MotoCorp reported its highest ever monthly sales at 5, 56,644 units in May, registering a growth of 11.28%.
According to my experience I found that overview about Hero motors. Different types of sales promotion & techniques used to promote & increase growth level of Hero Motocorp. Hero splendor pro & Hero passion pro of the cash cow of the Hero Motocorp.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS
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 company in 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. Hero MotoCorp two wheelers are manufactured across three globally
benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the hill state of Uttarakhand. In the 1980's the Company pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006. Its plants use world class equipment and processes and have become a benchmark in leanness and productivity. Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to innovate and develop cutting edge products and processes. Hero MotoCorp offers wide range of two wheeler products that include motorcycles and scooters, and has set the industry standards across all the market segments.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS The Company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero MotoCorp's extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, service & spare parts outlets, and dealer-appointed outlets across the country. The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground- level activation. Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent Total net operating income of Rs. 19401.15 Corers, growth of 22.32 per cent Net profit after tax at Rs. 1927.90 Corers Total dividend of 5250% or Rs. 105 per share including Interim Dividend of Rs. 70 per share on face value of each share of Rs. 2 each EBIDTA margin for the year 13.49 per cent EPS of Rs. 96.54 Hero Motocorp Ltd formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On 4th June 2012,Hero Motocorp approved a proposal to merge the investment arm of its parent-Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split from Honda Motor.
To have an overview about Hero motors. Page 6 . 2. To suggest few sales promotion techniques to improve the brand awareness amongst consumers. To study the consumer perception about the Hero motors.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS OBJECTIVES Objectives 1. 3.
it seems appropriate to present a brief overview of the research process. Formulating the research problem Extensive literature survey Development of working hypothesis Preparing the research design Determining the research design Collecting the data By observation through personal interview By questionnaires 2. 2. 1. Execution of the project Analysis of data Hypothesis-testing Generalization and interpretation Preparation of the report Page 7 . Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. 5.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS RESEARCH METHODOLOGY RESEARCH PROCESS: Before embarking on the details of research methodology and techniques. 4. 4. 1. 5. 3. 6. 3.
STEP1: DEFINE THE O Define the Objectives of the Research BJECTIVES OF G AND EVAL Collecting and evaluating secondary data Designing a primary research study Collection of Primary data Processing and Interpretation of Data Therefore to achieve the objectives of my research I have used Descriptive method for research Page 8 . The figure below depicts a model of consumer research process.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS RESEARCH PROCESS:The research was carried out as per steps of consumer research process.
5. : Shree Sai Motors. Data source Research approach Geographical area Sampling unit Sample size Research instrument Contact method : Primary & secondary : Survey method : Nanded. 6. 7.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS SAMPLING PLAN FOR THE PROJECT: 1. Nanded. 2. 4. : Personal contact Page 9 . : Questionnaire. : 100 Customers. 3.
so organization doesn‟t disclose it properly. Customer information is highly confidential. Making appointments to the Management personnel is tough job. 5. Respondent‟s answers might have influence or bias. Page 10 . because they are very busy. Information is collected from the customers and dealers only. 4. 2.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS LIMITATIONS The limitations are as follows:1. Some customers refuse to co-operate and do not disclose their Genuine opinion. 3.
Page 11 .A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS COMPANY PROFILE Corporate Office Headquarter of New Delhi. India.
Hero Honda has a customer loyalty program since 2000. A popular advertising campaign based on the slogan 'Fill it . These plants together are capable of churning out 3 million bikes per year. Munjal family and Honda group both own 26% stake in the Company. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda. Hero MotoCorp has a large sales and service network with over 3. The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda Hero MotoCorp has three manufacturing facilities based at Dharuhera. called the Hero Honda Passport Program. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera India. the company introduced motorcycles that were popular in India for their fuel economy and low cost. In 2010.Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. it was reported that Honda planned to sell its stake in the venture to the Munjal family.000 dealerships and service points across India. During the 1980s.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS COMPANY PROFILE “Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. Hero MotoCorp hopes to achieve 10 per cent of Page 12 . Gurgaon in Haryana and at Haridwar in Uttarakhand.Shut it .
directly or through or products. With a global network of 474* subsidiaries and affiliates accounted for under the equity method. and they expected to launch sales in Nigeria by end-2011 or early-2012. Ltd. Honda develops. In addition. to cope with the new demand over the coming half decade. "The Three Joys" expresses our belief and desire that each person working in. or coming into contact with our company.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS their revenues from international markets. the company was going to build their fourth factory in South India and their fifth factory in Western India. Based on this. Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price. "Respect for the Individual" reflects our desire to respect the unique character and ability of each individual person. trusting each other as equal partners in order to do our best in every situation. manufactures and markets a wide variety of products.commonly expressed as The Joy of Buying. There is no confirmation where the factories would be built. should share a sense of joy through that experience. ranging from Page 13 . the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society. since its establishment in 1948. HERO Motor Co. In addition. The Joy of Selling and The Joy of Creating.. The Company has grown to become the world's largest motorcycle manufacturer and one of the leading automakers. for worldwide customer satisfaction. operates under the basic principles of "Respect for the Individual" and "The Three Joys" . In line with these basic principles.
Automobiles Motorcycles Scooters ATVs Electrical Generators Water pumps Lawn and Garden Equipments Tillers Page 14 Products . Type Public (TYO: 7267) & (NYSE: HMC) 6. Satoshi Aoki (Chairman) Takanobu Ito (CEO) Key people 1.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS small general-purpose engines and scooters to specialty sports cars. 6. Soichiro Honda Takeo Fujisawa Founder(s) Headquarters Area served Minato. Automotive Aviation Industry Founded 24 September 1948 1. 7. Japan Worldwide 1. Ltd. 2. 4. 3. 2. 5. 7. to earn the Company an outstanding reputation from customers worldwide Hero Motor Company. Tokyo. 2. 8.
2. 12.27 Billion (FY 2009) ▲ US$ 2. Acura Honda Aircraft Company Subsidiaries Website Honda Worldwide Page 15 . 11.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 9. Outboard motors Robotics Jets Jet Engines Revenue Operating income Net income Total assets Total equity Employees ▲ US$ 120.39 Billion (FY 2009) ▼ US$ 124.98 Billion (FY 2009) ▼ US$ 40. 10.34 Billion (FY 2009) ▲ US$ 1.876 1.6 Billion (FY 2009) 181.
Hero MotoCorp Ltd. explore growth opportunities globally. Mission Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility. styling and quality so that it converts its customers into its brand advocates.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Vision The story of Hero Honda began with a simple vision .the vision of a mobile and an empowered India. company's new identity. setting benchmarks in technology. aggressively expand its reach to customers.. reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena. continue to invest in brand building activities and ensure customer and shareholder delight. continuously improve its operational efficiency. Page 16 . powered by its bikes. It will continue its focus on value creation and enduring relationships with its partners. The company will provide an engaging environment for its people to perform to their true potential. Strategy Hero Moto Corp's key strategies are to build a robust product portfolio across categories.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS PRODUCTS OF HERO MOTORS Products of Hero Motors:Overview of Hero Bikes:Hero cycle:- Type Industry Founded Private company Bicycles 1956 Page 17 .
Splendor NXG 2011 . Excellent Blue. Candy Blazing Red.Splendor Pro 2012 Eight different color shade designs are now available for Hero MotoCorp Splendor PRO Bike.Splendor+ 2005 . Cloud Silver. 1994 . 4.Super Splendor 2008 . 2. These color shades are named as Black Monotone. Heavy Grey. body colored visor & highlighted Splendor PRO logo sticker on its body Page 18 . 5. Along with extreme graphics Hero MotoCorp Splendor PRO has some more features to design itself from outside as newly designed multi-reflector halogen head lamp.Splendor 2004 . and Hi Granite Blue & Palace Maroon. 3.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Splendor pro:- Splendor Model 1. Black with Purple Stripe.
9. Two-Wheeler Bike Design 4 Stroke Engine 223 cc Engine Displacement Single Cylinder OHC Valve Mechanism Air Cooling Technology Carburetor Fuel Injection Max. 4. 2. 5. Hero MotoCorp Karizma ZMR Price in India . Karizma has been designed specifically for the Indian market.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Karizma ZMR:- The Hero Karizma ZMR is a motorcycle manufactured by Hero Motocorp. Torque of 18.6 liters Fuel Tank Page 19 . 8. it was supplemented by another variant Karimza ZMR. Power of 17. It was launched in May 2003 and was given a cosmetic upgrade Karizma R in 2007.The Hero MotoCorp Karizma ZMR Bike is now available with an attractive price tag of Rs 95500 Hero MotoCorp Karizma ZMR Technical Specifications 1. 3. 7.6 BHP @ 7000 RPM Max.35 Nm @ 6000 RPM 13. 10. In September 2009. 6.
33.85 Front Wheel 80/100 47P – 18 inch Front Tire 18 X 2.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 11. 17. 19. 23. 13. 18. 14. 15. 30. 21. 36. 22. Electric / Self Start DC – FTIS Ignition 5 Speed Gearbox Constant Mesh Transmission Diamond Frame Chassis Spoke/ Cast Wheels 5 Spokes 18 X 1.15 Rear Wheel 100/90 56P – 18 inch Rear Tire Tubeless Tire 276 mm Dia Disc Brake @ Front 240 mm Dia Disc Brake @ Rear 1350 mm Wheelbase 2110 mm/ 805 mm/ 1175 mm Size (L/W/H) 159 mm Ground Clearance 159 kg Weight (Kerb) 12 volt -6 Ah Battery Capacity Maintenance Free Wet Battery Multi-reflector Head Lamp 35 watt (D. 12.C) Halogen Bulb LED Tail Lamp Clear Lens Amber Bulb Turn Lamp Speedometer Tech o meter Low Fuel Indicator Single-row Seat Page 20 . 37. 28. 29. 38. 35. 25. 32. 26. 20. 16. 24. 31. 27. 34.
2 cc engine capacity and generates amazing power and torque. The new Hero Passion Pro offers a mileage of 69 kmpl and Hero Passion Pro plus offers a mileage of 70 kmpl.300 Hero Passion Pro Mileage.2 cc engine displacement and sports air cooled. single cylinder. Hero Passion Pro Pick up The new and classy Hero Passion Pro comes in two models.500 rpm.Pro and Plus.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Passion Pro:- Price of passion pro is Rs. Both the variants Page 21 . Average and Fuel Economy The stylish Hero Passion Pro is very powerful and fuel efficient bike in its segment. Both the variants come in 97. Both the variants of the Hero Passion Pro are equipped with 97.8 PS at 7500 rpm and develops a peak torque value of 8. 46. 4 stroke. OHC power train. The other variant Hero Passion Pro Plus produces a maximum power of 7.04 NM at 4.5 PS at 8000 rpm and a max torque of 7.95 Nm at 5000 rpm. The new Hero Passion Pro Pro generates a top power of 7.
Black with Frost Blue and Force Silver. Force Silver. Leaf Green Metallic. Body Color of the Hero Passion Pro attracts everybody and seems like mixture of two colors. The colors available in Hero Passion Pro Plus are Black & Sport Red. hood's side panels. Black & Frost Blue and Palace Maroon. Black with sports Red. The body color of the bike is painted at front mud-guard. The colors available in Hero Passion Pro are Vibrant Blue. Vibrant Blue. Colors of Hero Passion Pro The new and elegant Hero Passion Pro is available in many exciting colors.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS with this amazing power and torque offer zipper acceleration and pick up. Sports Red. Black with Heavy Grey. side panels and rear side panels Page 22 . fuel tank and its shrouds.
5. New digital – Analog combo meter console All secure ignition switch with key shutter Diamond lustre headlight Anti drag fuel tank 5 spoke wheels & front and rear disc brakes. The bike was introduced in the year 2008. 2. The Rectangular swing arm with 5 step adjustable gas reservoir suspension in the rear and Telescopic hydraulic type in the front makes you comfortable ride on the Indian roads without any hitch. Eye-catching Diamond luster Headlamp and prism shed tail lamp gives stunning new look. the new model has little else in common. and Halogen bulb Trapeze. X treme body comes with secured key shutter for safe ignition. Hero CBZ-X treme Features: 1.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero CBZ X treme:- CBZ X treme is a 150 cc motorcycle from Hero Motors which is the successor of the Hero CBZ. It has good ground clearance 145mm. 3. Except for a mild resemblance to the older CBZ's headlamp. 4. 6. 5 spoke cast Rim wheel. Prism shell LED tail lamp Page 23 .
or rear drum brake. Comfort and handling The Hunk has a stepped seat and rear-set foot pegs that give the rider a sporty stance without sacrificing rider comfort. The bike also features gas-charged adjustable rear shock absorbers and rear tire with a tuff-up tube. Awards The Hunk has won the NDTV Profit Car India & Bike India Awards Viewers’ Choice Award in the bike category. kick-start and selfstart.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Hunk:- Hero Hunk is a 150 cc motorcycle launched by Hero Honda Motors India Ltd in October 2007. It is offered in two variants. The new 2011 model is offered with either rear disc brake. Page 24 . The vibrations are well controlled.
Page 25 . The Maestro will be sold from January 2012 onwards. The Maestro is powered by a 4-stroke engine which produces 8.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Maestro:- The Maestro is an automatic scooter unveiled by Hero MotoCorp at the 2012 Delhi Auto Expo. The Maestro will be sold along the Hero Pleasure.2bhp at 7500rpm.
00 10.00 Air Cooled OHC 7. 4 Stroke. The price of this two wheeler is around Rs.10ps@7000rpm 7.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Pleasure:- This is the first time I am doing a review and road test of a Scooter.00 102cc. Power: Torque: 104. The high pricing is because of the 100cc engine and the bike positions itself in the premium scooter segment.00 125.85nm@5000rpm kg mm liters mm Page 26 . and I hope to do more soon.5k (ex-showroom) in Delhi.36. Hero Pleasure is the first scooter launched by Hero in competition to the Scooty Pep and Honda Activa. Hero Honda Pleasure Specifications: Engine: Maximum Maximum Weight: Ground Fuel Wheelbase: Brakes: 130mm Drum brakes for both Clearance: Tank: 1240.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Impulse:- Impulse Publisher First appearance DC Comics Legion of Super-Heroes vol. 4 #12 (October 1990) Kent Bart Iris West Flash Kid Flash Shakespeare Allen Characters See also Impulse Series publication information Schedule Format Genre Publication date Number issues Main character(s) of Monthly Ongoing series Superhero April 1995 – October 2002 90. 2 annual Bart Allen Page 27 .
Now Hero Honda has come up with new variants of Glamour & Glamour Fi with some cosmetic changes and technical changes. Now the 125cc engine comes with ASFS (advanced swirl flow induction system) to deliver increased mileage and performance. Page 28 .A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Hero Glamour:- Hero Honda Glamour Review Hero Honda Glamour is a perfect blend between the higher end so called sporty bikes and lower end 100cc bikes. ASFS system creates swirl inside the combustion mixture for better burning of fuel.
The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. to satisfy the customer. and business developments. Marketing is used to identify the customer. it proposes that in order to satisfy its organizational objectives. Page 29 . With the customer as the focus of its activities. it can be concluded that marketing management is one of the major components of business management. an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. the adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. and to keep the customer. selling products and/or services to customers and promoting them via advertising to further enhance sales. it generates the strategy that underlies sales techniques. it is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS THEORETICAL BACKGROUND SALES PROMOTION Marketing is the process of performing market research. business communication.
Page 30 . personal selling. the purpose of sales promotion is to stimulate. publicity and direct marketing. from personal care to textiles and apparel. Today we find companies in almost all sectors offering some sort of a promotion scheme. they are increasing at a fast pace.” 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. from household durables to services. these temporary inducements are offered usually at a time and place where the buying decision is made. These sectors range from automobiles to beverages.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Definition of sales promotion: Sales promotion includes incentive-offering and interest-creating activities which are generally short-term marketing events other than advertising. Sales promotion is often referred to by the names of „extra purchase value‟ and „below-the-line selling‟. not only are sales promotions very common in the current competitive market conditions. motivate and influence the purchase and other desired Behavioural responses of the firm‟s customers. sales promotions are fairly complicated and a rich tool of marketing with innumerable creative possibilities limited only by the imagination of promotion planners. These promotions are direct inducements. in spite of the directness. from financial services to foods. from household products to business products.
as part of the effort to build product awareness. Another important way to create interest is to move customers to experience a product. • Creating interest – marketers find that sales promotions are very effective in creating interest in a product.e. some sales promotions do offer customers access to Page 31 . creating interest is often considered the most important use of sales promotion. • Providing information – generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However. Internet marketers can use similar approaches to bolster the number of website visitors. which can then be used as part of follow-up marketing efforts. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets.. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost. sales lead generation).A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS OBJECTIVES OF SALES PROMOTION Sales promotion is a tool used to achieve most of the five major promotional objectives discussed in the promotion decisions tutorial: • Building product awareness – several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Additionally. In this way sales promotion can act as an effective customer information gathering tool (i. In fact. several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion.
price reduction). can be employed to stimulate sales. many buyers are conditioned to look for sales promotions prior to making purchase decisions. a promotion may allow customers to try a fee-based online service for free for several days. • Reinforcing the brand – once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). reward good or “preferred” customers with special promotions. This free access may include receiving product information via email. Many companies.. the most important use of sales promotion is to build demand by convincing customers to make a purchase. including airlines and retail stores. especially those that lower the cost of ownership to the customer (e. CLASSIFICATION OF SALES PROMOTION Sales promotion can be classified based on the primary target audience to whom the promotion is directed. Consumers are exposed to sales promotions nearly every day.g. Page 32 . such as email “special deals” and surprise price reductions at the cash register. These include: • Consumer market directed . Special promotions. For instance. • Stimulating demand – next to building initial product awareness.possibly the most well-known methods of sales promotion are those intended to appeal to the final consumer.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS product information. and as discussed later.
once products are stocked. • Business-to-business market directed – a small. marketers utilize promotions to strengthen the channel relationship. but important. b-to-b promotions are used in many industries. An extensive discussion of different types of promotions for each classification can be found in our types of sales promotion tutorial. Trade promotions are initially used to entice channel members to carry a marketer‟s products and.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS • Trade market directed – marketers use sales promotions to target all customers including partners within their channel of distribution. Page 33 . sub-set of sales promotions are targeted to the business-to-business market. While these promotions may not carry the glamour associated with consumer or trade promotions.
For example. Sales promotion differs from advertising in that its intent is to create a sense of urgency to encourage immediate action as opposed to building sales or a brand over a long period of time. ATTRACT CUSTOMERS Sales promotions are used to attract customers during periods of slow sales. Sales promotion may take the form of a temporary price reduction or a campaign to introduce an item. The promotion will likely increase your sales by taking away Page 34 . by running a promotion in the middle of winter where the price is reduced by 50 percent may encourage people to buy a grill at a time where it might not otherwise cross their mind. if you offer a seasonal product such as barbecue grills. INCREASING MARKET SHARE Sales promotions can lead to an increase in market share for the manufacturer. PRODUCTION DIFFERENTIATION Use of sales promotion techniques helps to differentiate your products from those of your competitors.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS FUNTION OF SALES PROMOTION Sales promotion is a short-term marketing strategy designed to achieve a specific purpose. this is especially beneficial are your products offered essentially the same features and benefits as others on the market. a method often used to make products stand out is to offer them at a slightly reduced price for a short period of time.
(i) Free samples: you might have received free samples of shampoo. As a result. INVENTORY CONTROL Sales promotion can help retailers limit out-of-stock situations by allowing Them to purchase large quantities at a reduced price. Let us know more about some of the commonly used tools of sales promotion. bonus.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS sales from your competitors. they can persuade customers to give the new product a try. These are known as tools or techniques or methods of sales promotion. at the same time they can discontinue a slow-moving item in the same category by marking it down and placing a "reduced for quick sale" sign in front of it. while purchasing various items from the market. This can be especially advantageous to the retailer for items that are popular sellers that can be difficult to keep on the shelf. etc. your market share will increase while your competitors' share decreases. and many more. TOOLS OF SALES PROMOTION To increase the sale of any product manufactures or producers adopt different measures like sample. This technique has the effect of keeping the category fresh while freeing up needed shelf space. gift. coffee powder. washing powder. By offering the new item at a reduced price and placing a "new item" sign in front of it. NEW PRODUCT INTRODUCTION Retailers can use sales promotions to introduce a new product. Page 35 .
(ii) Premium or bonus offer: a milk shaker along with NESCAFE. Page 36 . this type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. These are distributed to attract consumers to try out a new product and thereby create new customers. RS. rs. 2 off on purchase of a Lifebouy soap. toothbrush with 500 grams of toothpaste. Some businessmen distribute samples among selected persons in order to popularize the product. They are effective in inducing consumers to buy a particular product. This is useful for drawing attention to product improvement. in the case of textbooks. in the case of medicine free samples are distributed among physicians. This is also useful for encouraging and rewarding existing customers. (iii) Exchange schemes: it refers to offering exchange of old product for a new product at a price less than the original price of the product. Are the examples of premium or bonus given free with the purchase of a product. 1000 off on cooler‟ etc. For example. mug with Bournvita. 30% extra in a pack of one kg.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. are some of the common schemes. „Bring your old mixer-cum-juicer and exchange it for a new one just by paying rs.500‟ or „exchange your black and white television with a colour television‟ are various popular examples of exchange scheme. 15 off on a pack of 250 grams of taj mahal tea. (iv) Price-off offer: under this offer. products are sold at a price lower than the original price. „rs. specimen copies are distributed among teachers.
to create ways to persuade consumers to select brands and to further brand loyalty. as well as the advantages of its proprietary databases and survey methods. These coupons can be presented to the retailer while buying the product.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS (v) Coupons: sometimes. or in other words. The dentsu group offers clients various campaign promotion methods that employ information technology. regional. integrating all these capacities to create influence that extends from the formation of the consumer's brand perception to the encouragement of actual purchasing at retail. demonstrate the products and to explain special features and usefulness of the products. For example. „international trade fair‟ in new delhi at pragati maidan. „show this and get rs. the reduced price under this scheme attracts the attention of the prospective customers towards (vi) fairs and exhibitions: fairs and exhibitions may be organised at local. goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. 15 off on purchase of 5 kg. purpose of sales promotion the purpose of sales promotions is to encourage purchasing at retail locations. is a well known example of fairs and exhibitions as a tool of sales promotion. national or international level to introduce new products. Page 37 . The holder of the coupon gets the product at a discount. of annapurna atta‟. you might have come across coupons like. which is held from 14th to 27th november every year. coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS In addition to the specialized fields of e-promotions. Page 38 . by integrating mass media and sales promotion. retail promotions. cutting-edge creative materials. customer relationship management (crm) and direct response. the group provides clients with sales promotion solutions that combine conventional sales promotion methods and mass advertising." a unique method of producing cross-media campaigns that maximizes both effectiveness and efficiency. we have created "power promotion design. and a wealth of high-power content.
Page 39 . No.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS ANALYSIS & FINDINGS 1. of people using two wheelers? Yes : 70 No : 30 Column1 Yes No Interpretation After survey student found most of customers having bikes.
20% .10% Column1 Hero moto TVS Honda Bajaj Other Interpretation After survey student found that most of the customers having Hero bikes.45% .5% .A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 2.20% . Page 40 . Percentage of people using different brand? Hero Moto TVS Honda Bajaj Other .
Page 41 .A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 3. Does your purchasing decision affected by the brand name of the bike? Yes No 80 20 Yes No Interpretation Most educated customers say yes.
it is quite cheap. Page 42 . What is the opinion about the price policy of Hero products? Expensive 40 Cheap 60 Expensive Cheap Interpretation Most of the young riders say.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 4.
Page 43 . For what purpose you buy Hero bike? Official Household Business Any other 25 55 10 10 60 50 40 30 20 10 0 Official Hosehold Business Any other Interpretation Customers mostly preferred to use Hero bikes for their family itself.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 5.
Page 44 . Have you faced any problem regarding power driving of the vehicle? Yes 06 No 94 Yes No Interpretation Customers were satisfied with engine performance.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 6.
Page 45 . How does Hero have customer relations? Satisfactory Unsatisfactory 88 12 100 80 60 40 20 0 Satisfactory Unsatisfactory Interpretation Customers are satisfied with Hero‟s customer relations.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 7.
Page 46 . Are you satisfied with Hero bikes? Yes No 80 20 Yes No Interpretation Customers are satisfied with Hero bikes.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 8.
How did you come to know about this model? TV Internet Newspaper Banners & Hoardings Friends/Relatives Road show Magazine Dealer : 30 : 10 : 12 : 10 : 15 :8 :5 : 10 TV Internet Newspaper Banner&Hoardings Friends/Relatives Roadshow Magazine Page 47 .A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 9.
CONCLUSSION & SUGGESTIONS Page 48 .A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS FINDINGS.
Most of the customers go for Hero because of its safe engine. Hero technology is very innovative High segment goes for name and goodwill. 5. 2. 4.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS FINDINGS 1. After survey student found the satisfaction level of the Hero bike riders. Youth feel very comfortable with it. Page 49 . 3.
5. More financing options should be available. Follow-ups should be increased. The company should increase their service stations. The company should provide more consumer value. Efforts should be increased for Customer Relationship MANAGEMENT. 6.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS SUGGESTIONS 1. Special offer should be there for govt. Page 50 . 3. 4. employee. 2.
This research is also done to know the views of the customer towards the services and quality and supply chain management of Hero Bikes. therefore to satisfy each and every customer the important of building relationship with them existed. it becomes a difficult task to satisfy every customer. Page 51 . advertising and sales promotion of Hero. for this purpose a number of questions were asked to find out behavior of the customers. so that efforts might done to satisfy them which would result in building long-term relationships between customer and company. Due to delivery in customer needs and expectations.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS CONCLUSION This survey was done to identify various problems and level of satisfaction of consumers.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS ANNEXURE Page 52 .
Do you have vehicle? Yes No 2. Teacher -Govt. Mobile: ………………. Does your purchasing decision affected by the brand name of the bike? Yes No 4. Address: ……………… Occupation: .Shop Owner -Own Business -Other 1. Employees .Student 1.. Have you faced any problem regarding power driving of the vehicle? Yes No 7.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS ANNEXURE Questionnaire Name: ………………. Are you satisfied with Hero bikes? Yes No Page 53 . Which bike you have own? Hero TVS Honda Bajaj Other 3. How does Hero have customer relations? Satisfactory Unsatisfactory 8. What is the opinion about the price policy of Hero products? Expensive Cheap 5. For what purpose you buy Hero bike? Official Household Business Any other 6.
A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS 9. How did you come to know about this model? Internet Friends/Relatives Newspaper Magazine Banners & Hoardings TV Road show Page 54 .
Philips Kotler Marketing Research-G. Heromotorcorp.A STUDY OF ADVERTISING AND SALES PROMOTION OF HERO TWO WHEELERS BIBLOGRAPHY BOOK REFERENCE Referred Books:Principles of Marketing.C Beri WEBSITES:- WWW.com WWW.Timesdrive.com Various magazines such as Overdrive Wheelocity Autobhan Page 55 .
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