This action might not be possible to undo. Are you sure you want to continue?
Need for the study Objectives of the study Research methodology Scope of the study Limitations of the study
CHAPTER-II COMPANY PROFILE CHAPTER-III LITERATURE REVIEW CHAPTER-IV DATA ANALYSIS CHAPTER-V FINDINGS CONCLUSIONS& SUGGETIONS QUESTIONNAIRE BIBLIOGRAPHY
which makes it to increase the sales. To know how well the product TVS is doing well in the market. sales promotion. To know how well the product TVS is withstanding on their words. To determine the share of the TVS in two-wheeler by directly questioning the customer. So it is important to know how far these promotional activities are creating brand awareness in the minds of the customer and influencing them to go for the products and services and also the need to increase the quality. creativity and utilization of technology in the distribution and sales promotions. To find out the ways to promote the product so that it reaches the high standards. Sales promotions and distribution are playing a vital role in today's market. 4 . To find out the opinion of the customer on the subject.INTRODUCTION NEED FOR THE STUDY This particular topic is chosen because every organization required sales promotion and distribution to promote their product and services. OBJECTIVES OF THE STUDY To find out the opinion of customer about the perfect promotion technique.
e Marketing. DEFINING THE PROBLEM This involves developing and understanding of the problem. a) Primary Source This is through a well designed questionnaire. 2. Secondary data is collected through various books i. 3. the primary data has been collected through well designed questionnaire and personal interviews. DATA COLLECTION & PROCESSING The data has to be collected by the methods predetermined. LIMITATIONS OF THE STUDY The limitations of the study are restricted within the twin cities of Hyderabad and Secunderabad. The research need not be undertaken only for a problem but also for opportunities and this study an attempt has been made to understand Sales Promotion towards TVS Motor Company. catalogues and various books. SOURCES OF DATA The data has been collected from two sources i. b) Secondary Source The secondary source was collected from the profile of the organization. 5 .RESEARCH METHODOLOGY 1. SCOPE OF THE STUDY The scope of the study is confined to all the customers of TVS Company.e primary & secondary data.
CHAPTER-II COMPANY PROFILE 6 .
16. The largest automobile distribution company in India. 7 .COMPANY PROFILE TVS Group The TVS Group is one of India's largest industrial conglomerates. with a workforce of over 5000. It also distributes automotive spare pans for several leading manufacturers. today TVS commands a strong presence in various fields-two-wheelers. TV Sundaram Iyengar and Sons Limited. With steady growth. It represents premier automotive companies like Ashok Leyland. TV Sundaram lyengar and Sons Limited operate through the three following divisions.. TVS & Sons has an annual turnover exceeding US$ 450 million (over Rs. Jeeps and Cars. automotive spares. established in 1 9 1 1 . expansion and diversification. TVS & Sons has grown into a leading logistics solution provider and has set up state-of-the-art warehouses all over the country. computer peripherals and finance. Mahindra and Mahindra Ltd. TVS Sundaram Motors Madras Auto Service TVS and Sons distribute Heavy Duty Commercial Vehicles.000 million). automotive components. is the parent and holding company of the TVS Group. It has also diversified into distributing Garage equipment that ranges from paint booths to engine analyzers and industrial equipment products. Fiat and Honda.
scooters and mopeds at its state-of-the-art factories in Mysore and Hosur.TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100 / TVS Max 100R Scooterettes . the Company manufactures a wide range of motorcycles. Today TVS Motor Company has the largest market share in the moped category and is also the undisputed leader in the scooterette segment. With a strong sales and service network of 500 Authorized Dealerships. It also holds a considerable market share-in motorcycles. mopeds. is one of India's leading twowheeler manufacturers. part of the TVS Group.TVS Motor Company TVS Motor Company Limited. TVS-Suzuki became the first Indian company to introduce 100 cc Indo-Japanese motorcycles in September 1984. With a turnover of over Rs.TVS Scooty Pep/ TVS Scooty 2S Mopeds . 1018 Authorized Service Centers and over 864 Certified Service Points. TVS is growing from strength to strength.2800 crores. Various TVS two-wheelers TVS offers a wide range of two-wheelers: Motorcycles .TVS XL Super/ TVS XL Super HD 8 . scooters. With (he joint venture with Suzuki Motor Corporation in 1983. The company manufactures its motorcycles. Through an amicable agreement the two companies parted ways in September 2001.
the Shoaling in Oct 1997. a world-class 4-stroke 1 10 cc motorcycle. TVS Motor will have profitable operations overseas especially in Asian markets. with a 70 cc engine in Nov 1997. a world-class 4-stroke 100 cc motorcycle with Engines for best-in-class mileage. capable of developing innovative designs. The thrust will be to achieve a significant share for international business in the total turnover. at the right time. Launched India's first 5-spectl motorcycle. Introduced India's first catalytic converter enabled motorcycle. TVS Motor will be one among (he top two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia.the XL Super. the 100cc Shogun in Dec1996. Launched India's first high performance moped . Technology TVS Motor Company's R&D division has an imposing pool of talent and one of the most contemporary labs.Vision TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. capitalizing on the expertise developed in the areas of manufacturing. at the right price. technology and marketing. TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking against international leaders. Launched Centra in January 2004. TVS Motor will provide total customer satisfaction by giving the customer the right product. Launched Victor in August 2001. Committed 9 .
First Indian Company to introduce l00cc Indo-Japanese motorcycles in Sept 1984. India's first 2-seater. 10 . Launched Victor in August 2001. It's been a long time since the Doming Prize was instituted by the Union of Japanese Scientists and Engineers. Awards TVS Motor is the third Indian company to win the Doming Prize. the Company continuously strives to give the customer.the XL Super. very few organizations outside Japan have had the honor of receiving it.to achieving total customer satisfaction through Total Quality Control (TQC). TVS Scooty in June 1994. The company's manufacturing facilities at my sore & Hosur have state-of-the-art facilities & air pollution control measures. But very. a world-class 4-stroke 110 cc motorcycle. Launched India's first indigenous Scooterette. 50cc Moped in Aug 1980. Only two other TVS companies have managed this before. Launched TVS 50. the 1996. TVS is committed to protecting (his environment. with a 70 cc engine in Nov 1997. Launched India's first 5-speed motorcycle. the best value for money. Even the suppliers are encouraged to ensure that their products meet eco-friendly norms. Launched India's first high performance moped . the Shaolin in Oct 1997. Introduced India’s 100cc Shogun in Dec first catalytic converter enabled motorcycle.
Sri Sai TVS Motors: Details of Sri Sai Motors Sri Sai motors is established in the year 1997 at chandanagar It was started as a sub dealer to the TVS motors.P. the TVS Motor Company is the world's first motorcycle company to be awarded the prize. Sri Sai motors sell total eight types of two wheelers each one divided into two types. As for the TVS Group. 11 . Narashimmha Reddy as proprietor and Mr. Sundaram-Clayton Ltd. Number of sales persons in Sri Sai motors is six. The total number of employees involved in the process of gaining the customer satisfaction is 50 and these 50 numbers include administration staff sales executives and service men in the workshop. It has got a total of 8 sub dealers in i t s in chain of dealers. Padmanabham sir (Sales Personnel). It has got the authorized main dealership in the year 2003 for its excellent performance in increasing of sales & promotion and gaining huge customer satisfaction.In fact. Sri Sai motors is headed by Mr. The Doming Prize is the ultimate confirmation of our commitment to quality control. (Brakes Division) and Sundaram Brake Linings Ltd. it's a third. have already won it. Details of Sales The minimum number of two-wheelers which are sold by Sri Sai motors is more than 300 per month. And it is ranked number 2nd in A.
000 to 56. (a) (b) (c) Sri Sai motors provides various bikes for different people.000/-. 3.7% or 8. (a) (b) (c) For employee For business person 7. Sri Sai motors generate various sales reports 1.Business people -Family The range of prices for TVS two wheelers bikes starts from 36.8% per annum. The registration of the two wheelers is done by the agents who are in touch with Sri Sai motors. HDFC for the customer convenience with lowest rate of interest rate of payment. Weekly sales reports Monthly sales reports [ 1 -31st ] Mid week sales report [from Friday to Tuesday] 2. It also provides Two-Wheeler loans from respective banks like ICICI. TVS F2 or Victor GLX TVS Centra or TVS Star Victor Ax -Youth . 12 . Sri Sai motors offers Exchange Mela of bikes for two wheelers to satisfy the customer convenience of various two-wheelers. 7% per annum. It also offers test ride. The rate of interest charged on customer will depend on the amount he paid and loan period.The lowest priced TVS two wheeler that is XL Super.
The main manufacturing unit of TVS Motors is located in Tamil Nadu. Break Horse Power Centrifugal Force of Engine Revolution per Minute BHP CC - RMP - Details of Work Shop (Service Department) The workshop or service department has the following Customer Lounge: Customer lounge is a place where to complete the customer are asked to wait for this service to entertain the customer the administration had provided Television and newspapers. TVS two wheeler are manufactured with the CC & BHP. Supervisor cabin: There is one supervisor who is the head of the service department . The maintenance cost of TVS two wheeler is zero and the cost of spare parts is very less when compare with other two wheeler spare parts. 13 . December is the off season for sales and percentage of sales is more for motor bikes. Details about the Two-Wheelers All TVS Two-Wheeler motors are manufactured with pure Indian Technology with not foreign collaboration.e. after the budget of every year is announced.Sales are likely to be increased after the financial year i. The main competitors of TVS two wheelers are the two wheelers from the Hero Honda.He looks after the whole service department and is responsible for preparing the job card. The minimum warranty of engine is two years.
date and time of delivery. 14 . Mechanics: There are total of 8 automatic benches for service with 4 senior mechanics who are well trained. problem. customer. model. Water Room: There is a separate block to wash the vehicles .Engine Room: There is a separate cabin called engine room for the repair room for the repair works of the engine. amount for spare parts.A total of 30-40 vehicles are serviced here. engine number. Spare Parts: A well versed spare parts block contains different racks for different models of Vehicles. amount of service. Go down: There is also one huge Go down which has the capacity of putting a maximum of 150 vehicles. Job Card: Job Card contains the details of the vehicle like.
CHAPTER-III LITERATURE REVIEW 15 .
of course. Interestingly. Involving free samples aim at generating 16 . the basic approach is to create or increase a desire on the part of the Customer for the product itself. and Promotions. an oversimplification. Coupons and Promotions play a large role on the web as well. most Promotions implicitly assume the level of desire for the product is fixed and try to "close the deal " by providing incentives to purchase. Over 50 percent of both first time and repeat buyers were influenced by either coupons or free shipping. In contrast. most of the effort has been receiving an increasingly large share of the advertising/Promotion budget.LITERATURE REVIEW Sales Promotions Sales Promotions consist of many devices aimed at generating active Customer response within a short period of time. A" get them while supplies last" ad focuses on immediate response. This is. particularly for Promotion oriented toward the trade. In the case of advertising. Promotion competes with advertising for budget it also provides a different approach to influencing sales.
Nonetheless. For consumer packaged goods sold through supermarkets. one if the few ways product managers can obtain a short run change in sales or market share is to use sales Promotion activities. On top of that. In general Promotion falls in to three main categories: 1. In general. are seen as a form of marketing effort that is more aggressive and oriented toward immediate results. 2. Displays. feature advertising. and price deals (price cuts. 3. notably consumer packaged goods. how ever. or defensive. many of which involve temporary price reductions. and retailer-issued coupons) all affect sales and profits and either augment or detract from manufacturers direct Customer Promotions. the channels have become sufficiently 17 . the purpose of channel Promotions is to increase sales pf all products to the Customer. Final Customer Promotion Manufacturer Promotion to the channels or Trade Promotion. Final Customer Promotion comes directly to the Customer from the manufacturer. retailer Promotions are an especially visible form of Promotions. free merchandise. competitors quickly match Promotions.repeat business. Offensive Promotion attempt to gain an advantage through exclusively: being the only company to offer a particular Promotion or level of Promotion support. Channel originated Promotion. In reality. Promotion objectives and programs may be gathering offensive. Channel-originated Promotions are run by the channel itself to either the next channel in the distribution chain or to final Customers. in contrast. In most markets. is directed at intermediate channels of distribution in an attempt both to get them to buy more of a product and to commit their own effort to "pushing" the product through the nest channel and ultimately to the consumer. Trade Promotion. Promotions. in some areas. or Retailer Promotion.
including those with household brand names and dominant market shares. farm equipment and office Products manufacturers. Simplified Channel and Promotion Structure PROMOTIOM OBJECTIVES Final Customer Promotions 18 . Many types of consumer products. The result is that companies. are promoting due more to a perceived necessity to match competition and satisfy the channels than to a conviction that Promotions benefit the manufacturer. Short-term price discounts to consumers are very common in industrial markets. In addition. frequently target channel members for promotions which may or may not passed on to the customers. service and industrial products use sales promotion devices extensively. for example.powerful to both demand and schedule Promotions.
premiums. in addition to raising current sales. a company can run a tie-in Promotion that may. contest.Long-run(relationship building) A.Final Customer Promotion. account for only a small percentage of the Promotion. however. Be more loyal 3. typically takes a short-run view. Promotion can be directed toward any of those goals. Short-run (transactional) A. is it recommended that to go for the promotion objectives that are listed above. 19 . Such relationship-building motives. the operational objective of most Promotion is to generate immediate response in the form of sales. Occasional Customers(deal prone. The possible advertising objective range from generating awareness to increasing product understanding to improving attitude towards purchase. Even when the focus as long-run. such as to generate trial. at least for existing or mature products. rebates Trial sizes sampling If awareness is the problem. Buy More 2. brand switchers) Capture next purchase C. Buy now B. Current Customers 1. In principle. coupons Coupons. Similarly. Awareness enhancement B. display. Image enhancement II. a company can run a Promotion such as a game or sweepstakes designed to increase awareness of a product rather than to increase immediate sales. Frequent buyer Programs Rebates. have a residual positive impact on brand image. Non Customers Typical Sweepstakes. Once awareness of the product is met then to improve the sales. tie-ins Sponsorships Volume discounts/special “value” packages Coupons. Customer Promotion Objectives Objective Programming I .
typically through temporary price cuts such as coupons and rebates. attempting to get them to buy more through a -volume discount. Similarly. first we need to specify from what level sales should increase. Hence a major concern ids how to target Promotions o competitor's Customer alone. Promotions to non Customers are generally used when a product is new to generate trial. different sale price can be offered to target groups in catalogs based on their past purchasing behavior. Basically. capturing occasional but not loyal Customers. TRADE PROMOTIONS 20 . we must select the target Customer and define desired behavior. targeting non Customers implies a longrun relationship-building objective. The easiest benchmark is last year or last period. the more difficult measure. The objective are implemented in two ways. In a sense. to be more loyal. but one from which the true success of the program should be gauged. Many Promotions focus on current Customers. This is not only produces lower margins on the sales to occasional Customers but may also lower margins on sales that would have been made in the absence of the Promotion to either occasional or regular Customers. is effective but also expensive. you ca focus on getting current Customers to buy more. or generating sales from current Non Customers. or to accelerate their purchases and buy sooner. Special coupons may act as price discriminators as much as sales promoters. In addition to their sales-generating role.By far the most common objective of a consumer Promotion is a short-run goal to generate more transactions in a short period of time. selectively distributed Promotions provide a legal means of price discrimination. is what sales would be absent the Promotion Second. Attracting occasional Customers.
Trade shows are a great business in their own right. a longer-term objective. Promotion Budgeting Total Advertising and Promotion Budget Seven factors have been found to effect the total budget for advertising and sales Promotion for manufactured products .Companies spend more on Promotion and advertising relative to sales when 1. new-product introduction. The typical purchase amount is small Volume allowances Financing terms Discount/price cuts Slotting allowances Advertising Display allowances Premiums Contests Free goods 21 . One example of relationship-building is t give extra product to a channel with no explicit strings attached. 2. The product is relatively standardized. including image enhancement. Participants have multiple objectives. An important type of trade Promotion involves participating in trade shows. 3. and competitor monitoring. One major purpose of trade shows is to entice current and potential channel members to carry a product.The objectives of trade Promotions basically fall into three main categories. The final set of objectives involves relationship building. Objective Typical Programs Transactional: increase stocking levels Transactional: increase sales efforts allowances Relationship building Relationship building The first category focuses on getting the trade to buy or stock the product in greater quantities by offering various financial incentives. A variety of allowances and direct incentives relate to this task. The second category tries to increase the level of trade support given to the product by means other than increasing their inventories. There are many end users.
users. 5. 6. 7. The product is premium priced. The product has a high contribution margin. The product or service has a small market share.
ADVERTISING AND PROMOTION Several factors affect this allocation decision. First, the total amount of resources available has a major impact. If the marketing budget is small, extensive media advertising is usually not worthwhile unless the target market is local and can be reached by media such as radio and newspapers, because advertising usually needs a minimum or threshold amount to have any impact. Beneath the threshold value, the money is virtually wasted. In such cases, spending the budget on sales Promotion results in a greater market impact than advertising. Second, Customer factors affect allocation decisions. One relevant aspect of Customer behavior is the degree of brand loyalty. Promotion money spent on a product or service exhibiting high levels of loyally rewards primarily existing Customers. Although this may be what the product manager wants, it is usually not the best way to spend money. If Customer's are not very loyal, the product manager should try to understand if their behavior is endemic
to the category; if so, there may be an opportunity to attract brand switchers with Promotions. It is also possible, however that the product manager has created nonloyal Customers through frequent, price-based Promotions, and thus all that happens is a temporary swapping of Customers. A second relevant aspect of consumer behavior is the type of decision required of them. If the product is complex and therefore requires a fair amount of information
processing, more should be spent on advertising because it is better communications device. Alternatively, most sales promotion amount is spent on product categories in which decision making is routine and involves little processing of information about the product. A third factor affecting allocation decisions is whether advertising and promotion amount high the unique aspects of the product, consumer franchise building (CFB) aspects. CFB activities are those that build brand equity, including advertising, sampling, coupon, and product demonstrations. Non-CFB activities focus on price alone and include trade promotions, short-term price deals, and refunds. TYPES OF FINAL CUSTOMER PROMOTIONS Deciding on which Promotion element to employ in many ways parallels the media selection process in advertising CONSUMER PROMOTIONS I. Product based A. B. Additional volume/bonus pack Samples 1. 2. 3. 4. II. Price based A. B. Sale price Coupons 1. Central location Central location Direct(e.g., mail) Attachment (in-/-on-pack) Media placed (clip-and-send coupons)
2. 3. 4. C. D. E. III.
Direct (mail) Attachment (in-/-on-pack) In media (e.g., websites)
Refind/rebates Financing Frequent
Premiums Place-based Promotions(physical '1;splays; Internet site based) Games (sweepstakes, contests)
PRODUCT-BASED PROMOTIONS One obvious category of Promotions is to give away the product itself. Extra volume packages bare common in consumer products. Even more dramatic are completely free products. Coupons for free goods show up in the mail, on or in packages of the good, or in media vehicles. Computer hardware and software companies often give free copies of their products to select Customers as "beta" test sites to help get any bugs out and stimulate early word of mouth. Sampling has the obvious benefit of stimulating product trial because it gives the shortcomings. First, it is very expensive. Second, it may not target the right potential Customers; people who distribute free samples in supermarkets or on street corners are not very discriminating about to whom they give the product PRICED-BASED PROMOTIONS Another obvious type of Promotion involves price. The use of sale price is understated if we describe them as being "widespread". Unfortunately, most short-
other elements of the marketing mix can be used to meet company objectives. The use of attachment coupons allows a more focused price cut.and price-based Promotions. though the long-run effects may be negative. Frequent user programs such as those offered by supermarkets. notice the checkout and end-of-aisle displays at any supermarket. and the like. 25 . a now flavor extension. sporting goods stores etc. OTHER CUSTOMER PROMOTIONS In addition to product . In addition. including extremely brand-loyal ones. They are also flexible because they can be designated for larger package sizes. though outright theft and trading of coupons are common As just noted one advantage of coupons is that they can be delivered by mail. One popular form of place-based Promotion is the exposition at which manufacturers congregate to display and sell their wares. Coupons are one of the very few ways to legally implement price discrimination. have access to in-store price reductions. or even through the Internet to carefully targeted audiences. because they normally have to be cut out and physically carried to the point of transactions. Point-of-purchase displays are common. Another inducement to purchase is free service. and thus may engender more repeat purchases. coupons require more commitment to purchase the product. are useful for encouraging brand loyalty and allow consumers to buy products at a discount after they have accumulated a sufficient number of points. various premiums have proven effective. price-based consumer Promotion is also options. that is.term price reductions are not narrowly targeted because all buyers. Refunds and rebates are common and effective. More targeted price reductions that require at least some effort on the part of the consumer involve coupons. charge different prices to segments with different sensitivities to price by delivering targeted coupons. at the cash register. In addition. Other.
Co-op advertising Selling aids Co-op selling V Sales based A. B. Bonuses and incentives B.TYPES OF TRADE PROMOTIONS: Trade Promotions are directed not to the final Customer but to the channels through which the goods are sold. B. B. Contents and prizes Product-based Promotions include free goods and generous returns policies. Like consumer Promotions. Free goods Consignment/returns policy Price based A. C. II. Slotting allowances Display allowances Warehousing/delivery assistance IV Advertising and promotion based A. B. they can be broken into five categories Trade Promotions I. C. Buying allowances Financial terms III Place based A. Returns policies allow the channel to return unsold merchandise for a full or partial 26 . Product based A.
but may lead to an overestimate of the benefit of Promotion because it ignores both where the sales come from and the long-term consequences of Promotion. Other Promotion involve reducing inventory and transportation costs by either warehousing the goods for the channel or paying all or part of delivery charges. In addition to selling aids companies often provide cooperative advertising. which are basically payments for placing a product on the shelf. as well as financing terms such as long period of time before payment is due or below-market interest rates.refund. sharing the channel's advertising expense. a standard approach to measuring the impact of sales Promotion is tracking. Slotting allowances. Display allowances compensate retailers for prominent display of goods. EVALUATING SALES PROMOTION: TRACKING STUDIES 27 . Price deals include various volume discounts and allowances. have become increasingly important as power has shifted from manufacturers to retailers. EVALUATING CUSTOMER PROMOTIONS The easiest approach to evaluating Customer Promotion is to simply look at incremental results during the period of Promotion. for which the fees can become prohibitive. This method provides a useful starting point. These fees charged to manufactures have had a negative effect on the number of competitors in many product categories and have been particularly hard on small companies. As with evaluating advertising effects. Providing selling assistance is also common. reducing the risk of carrying the product. Place-based allowances are especially for consumer packaged goods.
thus negating the need to rebuy soon. a price reduction -is given to end consumers. The simple analysis could be made is the gain could be offset by the crosshatched "dip" at point B. The gain must be evaluated relative to a base amount: the amount of sales that would have been generated had the Promotion not to run. 28 . product managers tend to look at the shaded above point a as shown. including actions by both the product in question and the competition. The analysis does not account for other factors in the marketplace. representing the possibility that consumers have increased their inventories at home.As shown in above picture of simple tracking approach with point A on horizontal axis representing the time when the Promotion say. Tracking studies such as these are used frequently because the effects of sales Promotion often show up quickly. This base line calculation is some what difficult because it will change by the time. Unfortunately.
Uncelebrated regular purchases—regular buyers who use the coupon as a "bonus" price cut. Of course. 4. Category 3 is basically a negative. albeit borrowed ones. a coupon can have several incremental impacts: 1. bought the products somewhat sooner than they would have in the absence of a Promotion. Accelerated regular purchase—that is. Accelerated captured purchases—purchases that neither would have bought at the time nor bought the promoted brand but are persuaded to do both by the Promotion. Basically. SHORT-RUN EVALUATION Sales increase from Promotions may be generated by accelerating purchasing by loyal buyers. Uncelebrated regular purchases—purchases of other brands who switch to the promoted brand because of the Promotion. If subsequent sales are depressed as a result of increased inventory. The point at which sales seem to return to "normal". 3. categories 2 and 4 are pluses and category 1 also represents incremental sales. Obviously. there is no benefit and a clear cost. one possible benefit of Promotion is that "captured" buyers will remain loyal and repeat purchase 29 . If products have several Promotions running simultaneously. representing a positive long-run effect. May be Customers who would have bought the product anyway and simply used the coupon as "found of money" or. Category 1 is potentially but not necessarily negative. at best. it could be higher than the base for some period of time.Product managers must carefully examine point C. Many coupon redeemers. regular buyers of the brand simply buy sooner 2. it is difficult to separate the effects of one Promotion from another.
something it make sense to buy only on deal. In addition to the direct effects of manufacturer Promotions on Customer. either with or without depressing future purchase quantity. Promotions on underused services or perishable goods may produce increasing profits. then it is necessary to estimate both the source of additional sales and its overall magnitude.the promoted brand on a subsequent purchase occasion. Some Promotions have lower redemption rates than others that are freestanding insert coupons versus on-pack or register a price discount. Notice that a major factor affecting the profitability of Promotions is whether or not a good is easily stockpiled. considerable evidence seems to suggest that increased quantity due to Promotion is neither preceded nor fallowed by decreased quantity purchased. A 30 . Brand bought on Promotion may be seen as lower in quality and. the Promotion has an indirect impact on channel (retailer) behavior. and. if Promotion is matched by competitors. the profit consequences of each need to be considered. the extreme. LONG-RUN CONCERNS Promotion also has two important long-run impacts. The main point here is that it is possible to estimate the impact of a Promotion through systematic analysis and that the results of such analysis are often quite sobering. First is the impact of Promotion on Customer perceptions of the brand. Interestingly. It is possible that Promotion increases category purchase quantity. In addition. actually lead to lower profits. To assess the value of Promotion. Perishable goods and services cannot be stockpiled and hence paper towel Promotions tend to result in stockpiling. In contrast. which lessen their negative impact on profit margins but at the same time decreases their impact on quantity.
Customer loyalty or inertia 31 . COMPETITIVE REACTION There is also concern about the impact of Promotions on competitors. Not surprisingly competitors often match Promotions quickly. thus negating many of the possible benefits while increasing costs. The non-product marketing mix elements: price. Given the prevalence of scanner data for supermarket and drugstore products. 4. We know consumers use coupons extensively. Carryover effects of past purchases. and advertising. PROMOTION EFFECTS Scanner data have been used extensively to assess the effects of Promotion on buying behavior. Promotion. and hence decisions need to take likely competitive reactions into account. some accelerate purchases and stockpile goods in response to Promotions. The inherent value of a brand-size combination. The models generally assess the value of each brand to an individual Customer as a function of several components: 1.recent study suggests when long-run negative impacts are considered. Most markets are oligopolies. Further. This is either treated holistically or further decomposed into product attributes. while some consumers purchase at regular intervals. the total positive impact of a Promotion is only one-third its short-run impact. it is not surprising that a large number of models have been developed to use them to asses the impact of marketing variables such as Promotion or assuming primary demand (market size) is constant on share. 2. A Promotion spiral can ensue with great benefit to Customers and harm to companies profits. the amount of the Promotion. 3.
end-of aisle displays. Higher market share brands are deal elastic The frequency of deals changes the consumer's reference price. Retailers pass through less than 100 percent of trade deals Display and feature advertising have strong effect on item sales. coupons. 2. They are. 9. Promotional affect sales in complementary and competitive categories. 32 . a useful and unobtrusive means for evaluating both natural and controlled experiments. They generally include only household-level data. and promoting higher-quality brands affects weaker brands disproportionately. 4.Scanner data are not a perfect means for assessing the impact of Promotions. 8. TEST MARKET Test markets are as useful for evaluating different sales Promotions as they are for advertising copy or pricing experiments. The impact of Promotion to the most is based on analysis of consumers packaged goods and here are some of the analyses made: 1. and exclude many potential influences on sales. however. Temporary retail price reductions substantially increase sales. The greater the frequency of deals. A product manager can attempt different combinations of free samples. the lower the height of the deal. do not cover purchases at non-scanned stores. Advertised Promotions can result in increased store traffic. 5. Cross-Promotional effects are asymmetric. 3. 7. 6. using some stores as the Experimental group and others with no promotional activity as the control group. Scanner data are increasingly being used to compare different Promotions and provide directional guidance to managers. and special price Promotion over a period of time.
This practice is common when a company offers a volume discount and multiple dealers in effect 33 . there was no large "through. A similar problem exists for trade Promotions. the issue of "gray markets". It can be seen that a significant spike in unit sales occurred around the data when all of the special displays were installed. unauthorized dealers. Gray markets involve authorized dealers or retailers that buy the product from the producer and then resell it to other.The above figure shows that of a result of a special display experiment run in a Behavior Scan market. EVALUATING TRADE PROMOTIONS The results of earlier has shown that many users of consumer Promotion would have bought the product anyway." thus implying that the net effect was quite positive. so they simply pocket the value of the Promotion stock up at the low price. An interesting result is that although the sales in the experimental stores were lower than those in the control stores after the experimental period.
these provisions are hard to monitor and enforce. Put differently. Basically. The special fall premium was direct payment to the Manufacturer/s own sales force. The sales drive consisted of a percentage payment to channel when it sold units to the retailer. channels' profits are often increased by retaining all or a substantial amount of a Promotion allowances as profit. Trade Promotion now accounts for more of the Promotion budget than either advertising or consumer Promotions. an explicit recognition of the growing power of mass merchandisers in consumer packaged goods marketing. Although the manufacturer's objectives are best served when Promotions are passed through to consumers. One way to evaluate trade Promotions is as a necessary cost of doing business. in contrast to the multiple-equation approach PROMOTOR does not asses the process by which a Promotion works. although many trade Promotions involve implied cooperation on the part of the channel. To remove the impact of the direction sales force were headed on their own the model also used a time trend term.pool their orders to obtain it. Further. Various Internet-enabled consortia have sprung up to take advantage of these discounts. The model included an "end-of-deal" variable to account for orders placed during the deal period but not shipped until the next period. rather it 34 . This approach begins by developing a baseline sales level based on trend and seasonality plus any unusual factors that may have affected sales. sales drive discounts. Trade Promotion consisted of three basic types—off-invoice discounts. Incremental sales are then computed as the difference between baseline and actual sales. One reason is a key to increased volume. A different approach uses an expert system style modeling method (promoter) based on the results of many past Promotions. and special fall premiums—and their effects were treated separately. Thus. a baseline estimation procedure relies on periods when Promotion is zero.
concentrates on estimating its magnitude. savings by the retailer are passed along to consumers less than manufacturers hope. The general findings from PROMOTOR are the fallowing: Trade deals tend to have lower "pass-through". that is. The effectiveness of trade deals varies greatly across sizes of products and markets. Retailers tend to forward buy when they offered Promotions. 35 . allowing them to stock up and ultimately making the Promotion unprofitable for the manufacturer.
CHAPTER-IV DATA ANALYSIS DATA ANALYSIS 1) Which promotion techniques would you prefer for your purchase? I) Newspaper Advertisement Maximum 53 29% Moderate 71 39% Minimum 36 20% Nil 22 12% Options Responses Percentage 36 .
39% of the total customers have responded that the promotion technique Newspaper Advertisement is moderate. 20% of the total customers have responded that Newspaper Advertisement Promotion technique is to the level of minimum. 12% of the total customers have responded that News paper advertisement is not at all a promotion technique. 2) Which promotion techniques would you prefer for your purchase? II) Exchange Mela Moderate 54 30% Minimum 21 12% Nil 20 11% Options Responses Maximum 87 48% Percentage 37 M in im N il .Percentage ra te u m 5% 0 4% 0 3% 0 2% 0 1% 0 0 % im a x u m o d e M M pt n oio s INTERPRETATION: 29% of the total customers have responded to the maximum extent that promotion technique Newspaper advertisement is good.
12% of the total customers have responded that Promotion technique Exchange Mela is to the level of minimum. 30% of the total customers have responded that the promotion technique Exchange Mela is moderate. 11% of the total customers have responded that Exchange Mela is not at all a promotion technique.Percentage ra te im u m u 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % a x m o d e M M o to s pi n INTERPRETATION 48% of the total customers have responded to the maximum extent that promotion technique Exchange Mela is good. 3) Which promotion techniques would you prefer for your purchase? III) Scheme Coupons Maximum 70 38% Moderate 61 34% Minimum 30 16% Nil 21 12% Options Responses Percentage 38 M in im N il .
Precentage 4% 0 3% 0 2% 0 1% 0 u m u 0 % a x ra te m o d e M M ot n pio s INTERPRETATION 38% of the total customers have responded to the maximum extent that promotion technique Scheme Coupons is good. 12% of the total customers have responded that Scheme Coupons is not at all a promotion technique. 34% of the total customers have responded that the promotion technique Scheme Coupons is moderate. 4) Which promotion techniques would you prefer for your purchase? IV) Others Maximum 40 22% 4% 0 3% 0 2% 0 1% 0 ra te m u Options Responses Percentage Precentage Moderate 33 18% M in im Minimum 47 26% N il im Nil 62 34% 0 % a x u m o d e 39 M M ot n pio s M in im N il im . 16% of the total customers have responded that Promotion technique Scheme Coupons is to the level of minimum.
05) Do you think that Exchange Mela's will attract you in buying bike? Options Responses Percentage Maximum 60 33% Moderate 27 15% Mini in u in 87 48% Nil 8 4% 40 . 18% of the total customers have responded that the Other promotion techniques arc moderate. 34% of the total customers have responded not at all to the Other Promotion techniques.INTERPRETATION 22% of the total customers have responded to the maximum extent that Other promotion techniques are good. 26% of the total customers have responded that Other Promotion techniques are to the level of minimum.
Precentage ra te m u m 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % im a x u o d e M M ot n pio s INTERPRETATION 33% of the total customers have responded that exchange mela's to the maximum extent attract them to buy the bike. 06) Do you think that Advertisement with Star amenities will attract you to buy the Bike? Options Responses Percentage Maximum 8 4% Moderate 83 46% Minimum 77 42% Nil 14 8% 41 M in im N il . 4% of the total customers have responded that exchange mela's will have no effect on them. 15% of the total customers have responded moderately that exchange mela's are a good source of buying new one's. 48% of the total customers have responded that exchange mela's will attract them to buy the new to minimum.
42% of the total customers have responded that advertisements with star amenities will attract them to level of minimum. 46% of the total customers have responded that they are moderately attracted towards purchasing bikes of advertising with star amenities. 07) Are you satisfied with the maintenance cost of your Bike? Options Responses Percentage Maximum 75 41% Moderate 80 44% Minimum 10 5% Nil 17 9% 42 M N il .Precentage ra te im in im u m u 5% 0 4% 0 3% 0 2% 0 1% 0 0 % a x m o d e M M o to s p n i INTERPRETATION 4% of the total customers have responded that advertisements with star amenities will attract them to maximum extent. 8% of the total customers have responded that advertisements with star amenities will have no effect on them.
Precentage ra te u m u 5% 0 4% 0 3% 0 2% 0 1% 0 0 % a x m o d e M M ot n pio s INTERPRETATION 41% of the total customers have responded that to the maximum extent they have satisfied with maintenance cost. 08) Are you aware of new TVS brand Two-Wheelers in the Market? Options Responses Percentage Maximum 92 50% Moderate 75 41% Minimum 14 8% Nil 1 1% 43 M in im N il im . 9% of the total customers have responded that the maintenance cost is very much nil. 5% of the total customers have responded that the maintenance cost of the bike is to the level off minimum. 44% of the total customers have responded that the maintenance cost of the bike is moderate.
41% of the total customers have responded that the awareness of the new models of TVS bikes is moderate. 8% of the total customers have responded that the they are aware of new one's to the minimum level.Precentage ra te u m u 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % a x m o d e M M ot n pio s INTERPRETATION 0% of the total customers have responded that to the maximum extent they are aware of the new models of the TVS bikes. 1% of the total customers have responded they arc not aware of the new models of the TVS bikes 09) Do you think that TVS Motors Company is following the above techniques for increasing the sales and promotion of the brand? Options Responses Percentage Maximum 29 16% Moderate 89 49% Minimum 31 17% Nil 33 18% 44 M in im N il im .
17% of (he total customers have responded that TVS. 49% of the total customers have responded that the TVS to increase sales by fallowing above promotion techniques is moderate.Precentage ra te u m u 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % a x m o d e M M ot n pio s INTERPRETATION 16% of the total customers have responded that to the maximum extent they are increasing the sales fallowing above techniques. to increase sales by fallowing above techniques is to the level of minimum. 10) Do you feel that TVS Brand Motors are increasing their sales in the market? Options Responses Percentage Maximum 41 23% Moderate 77 42% Minimum 34 i 9% Nil 30 1 6% 45 M in im N il im . 18% of the total customers have responded they arc not at all fallowing above promotion techniques to increase sales.
of the total customers have responded they are not at all are increasing the 11) Do you think that features of TVS motors matches with the price of the Bike? Options Responses Maximum 40 Moderate 78 Minimum 34 Nil 30 46 M in im N il .Precentage ra te m u m 5% 0 4% 0 3% 0 2% 0 1% 0 0 % im a x u o d e M M ot n pio s INTERPRETATION 23% of the total customers have responded that to the maximum extent TVS are increasing the sales. 16% sales. 19% of the total customers have responded that TVS increasing sales is to the level of minimum. 42% of the total customers have responded that the TVS increasing sales are moderate.
19% of the total customers have responded that TVS features matches with the price are to the level of minimum. matches with the price is to moderate. 12) Do you have any Complaint about your Bike in terms of the following? Options Responses Maximum 36 Moderate 80 Minimum 36 Nil 30 47 M in im N il .Percentage 22% 43% 19% 1 6% Precentage ra te m u m 5% 0 4% 0 3% 0 2% 0 1% 0 0 % im a x u o d e M M o tio s p n INTERPRETATION Among total 182 respondents:22% of the total customers have responded that to the maximum extent TVS features matches with the price of the bike. 43% of the total customers have responded that the TVS features. 16% of the total customers have responded that TVS features not at all matches with the price of the bike.
16% of the total customers have responded that TVS motors do not have any repairs.20% of the total customers have responded that repairs about TVS bikes are to the minimum level. 44% of the total customers have responded that the repairs about TVS motors are moderate.Percentage 20% 44% 20% 16% Precentage ra te m u m 2% 5 2% 0 1% 5 1% 0 5 % 0 % im a x u o d e M M ot n pio s INTERPRETATION 20% of the total customers have responded that to the maximum extent TVS motors have repairs. 13) Put the appropriate alphabet in the space available? Options TVS Others Excellent 62% 64% Good 17% 27% Moderate 14% 9% Less 7% 0% Nil 0% 0% M 48 in im N il .
No customer have opted for nil 14) Style Options TVS Others Excellent 45% 53% Good 36% 24% Moderate 15% 22% Less 4% 0% Nil 0% 0% 49 L e N il .Percentage ra te e n t d 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % x c s s G o o e ll o d e M E Pt n oio s INTERPRETATION 62% of TVS and 64% of Other Customers have responded for the option Excellent. 17% of TVS and 27% of Other Customers have responded for the option Good. 7% of TVS and 0% of Others Customers have opted the options Less. 14% of TVS and 9% of Other Customers have responded for the option Moderate.
No customer have opted for nil 15). 36% of TVS and 24% of Other Customers have responded for the option Good. 15% of TVS and 22% of Other Customers have responded for the option Moderate. Comfort Options TVS Others Excellent 38% 31% Good 50% 64% Moderate 8% 4% Less 4% 0% Nil 0% 0% 50 L e N il . 4% of TVS and 0% of Others Customers have opted the options Less.Percentage e lle n t ra te 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % d G o o xc ss M E o d e P tio s o n INTERPRETATION 45% of TVS and 53% of Other Customers have responded for the option Excellent.
8% of TVS and 4% of Other Customers have responded for the option Moderate. No customer have opted for nil 16 ) Pickup Options TVS Others Excellent 53% .Percentage ra te e n t d 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % x c G o o s s e ll o d e M E Pt n oio s INTERPRETATION 38% of TVS and 31% of Other Customers have responded for the option Excellent. 56% Good 34% 36% Moderate 10% 4% less 4% 4% Nil 0% 0% 51 L e N il . 50% of TVS and 64% of Other Customers have responded for the option Good. 4% of TVS and 0% of Others Customers have opted the option Less.
10% of TVS and 4% of Other Customers have responded for the option Moderate.Percentage 60% 50% 40% 30% 20% 10% 0 % el le n t ra te d ss G o o xc o d e L e N il M E Potions INTERPRETATION 53% of TVS and 56% of Other Customers have responded for the option Excellent. 4% of TVS and 4% of Others Customers have opted the options Less. 34% of TVS and 36% of Other Customers have responded for the option Good. No customer have opted for nil 17) Cost Factor Options TVS Others Excellent 4% 13% Good 10% 16% Moderate 41% 22% Less 45% 49% Nil 0% 0% 52 .
4 0 . 41% of TVS and 22% of Other Customers have responded for the option Moderate.5 0 .Percentage e ll e n t ra te 0 .6 0 .2 0 .1 0 d s s G o o o d e x c M E Pt n oio s INTERPRETATION 4% of TVS and 13% of Other Customers have responded for the option Excellent. No customer have opted for nil 18) If you are already the owner of TVS bike/vehicle. are you fully satisfied? Options Responses Percentage Maximum 20 15% Moderate 79 58% Minimum 28 20% Nil 10 7% 53 L e N il .3 0 . 10% of TVS and 16%'of Other Customers have responded for the option Good. 45% of TVS and 49% of Others Customers have opted the options Less.
19) SERVICE AND SPARES Options Responses Percentage Maximum 89 65% Moderate 21 15% Minimum 17 13% Nil 10 7% 54 . 1% of the total customers have responded mat TVS vehicles performance is not up to the mark.P r e te e ec n g options 8 0 6 0 4 0 2 0 0 Mx u a im m M d ra o e te M im m in u N il INTERPRETATION 15% of the total customers have responded that to the maximum extent the performance of the TVS bikes is good. 20% of the total customers have responded that TVS vehicles performance is to the level of minimum. 58% of the total customers have responded that the TVS bikes performance is moderate.
Pr e t g ec ne e options 8% 0 6% 0 4% 0 2% 0 0 % a x ra te m u m u o d e INTERPRETATION 65% of the total customers have responded that to the maximum extent the service and spares is good. Would you like to buy TVS two-wheeler motor in future? Options Responses Percentage YES 127 70% NO 55 30% M M M in im 55 N il im . 20. 15% of the total customers have responded that the TVS bikes service and spares is moderate. 1% of the total customers have responded that TVS vehicles spares and spares are not up to the mark. 20% of the total customers have responded that TVS vehicles service and spares is to the level of minimum.
CHAPTER-V FINDINGS CONCLUSIONS & SUGGETIONS 56 .3% 0 7% 0 INTERPRETATION 70% of the total customers have opted for the yes option which implies a greater proportion of buying the TVS vehicle. 30% of the total customers have opted for no.
FINDINGS Most of the customers have the opinion that there is no resale value for the TVS brand two-wheelers in the Market. 57 . So it is vital to standardize the brand image of the TVS motorcycles. Brand image plays an important role for retaining the Customers to a particular brand in the Market. Dealers should ensure that more and more servicing centers are available in the smaller towns. so there is a need to improve the resale value of the TVS products.
It is advised to reduce the price of the spare parts to target the middle and 58 . CONCLUSIONS Sales Promotion is an important function of any Organization in today’s Market. which may boost the business in local areas. SUGGETIONS It is advised to stability the Brand name and increase the Mileage of the bike to attract the middle and lower middle class people. More style. It is advised to give advertisement in local channel. I want to conclude by saying that the TVS Brand two-wheelers should carry out the various program's for increasing the Sales of TVS brand two-wheelers in the Market. Change in the perception of the Customers towards TVS bikes. Knowing the importance of the Sales Promotions in to-days Market. Small modifications to the existing models can bring enormous. pickup and mileage products to be manufactured to meet the satisfaction of the Customer and to retain them to the Brand of TVS. Sales Promotion deals with various promotion techniques for improving the Sales and Brand awareness of TVS Brand two-wheelers.
lower class income people. It is advised to increase promotional schemes to attract more number of people free servicing of the vehicles should be carried out effectively. Efforts to be made to capture uncovered areas. QUESTIONNAIRE 1. wich promotion technique would prefer for increasing of sales? a) Advertising b) Exchange Mela c) Scheme Coupons d) Others 3. Do you think Exchange Mela's will attract you in buying the Bike? a) Maximum b) Moderate c) Minimum d) Nil 59 . What Bike do you hold at present? a) Brand b) Model c) Satisfy d) Mileage 2.
Do you feel that TVS Brand Motors arc increasing their sales in the market? a) Maximum b) Moderate c) Minimum d) Nil 8.4. Do you think that features of TVS motors matches with the price of the Bike? a) Maximum b) Moderate c) Minimum d) Nil 9. Do you think Advertisement with Star amenities will attract you to buy the Bike? a) Maximum b) Moderate c) Minimum d) Nil 5. Do you have any Complaint about your Bike in terms of following? a) Maximum b) Moderate c) Minimum d) Nil 10. are you fully satisfied? a) Maximum b) Moderate c) Minimum d) Nil 12. If you arc already owner of TVS vehicle/hike. Do you think that TVS Motors Company is following the above techniques for increasing the sales and promotion of the brand? a) Maximum I)) Moderate e) Minimum d) Nil 7. a)Excellent b)Good c) Moderate d) Less e) Nil 11. Put the appropriate alphabet in the space available. Are you satisfied with the maintenance cost of'your Bike? a) Maximum b) Moderate c) Minimum d) Nil 6. Would you like to buy TVS two-wheeler motor in future? (Yes/no) 60 .
BIBLIOGRAPHY Principles of Marketing -Kotler Amstrong Essence of Marketing -Majaro Basic Marketing -Me Carthy Product Management -Donald R. Lehman Internet 61 .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.