You are on page 1of 79

INTRODUCTION

Marketing includes all those activities having to do with effecting changes in the ownership and possession of goods and services. It is that part of economics which deals with the creation of time, place and possession utilities and that phase of business activity through which human wants are satisfied, by the exchange of goods and services for some valuable consideration. American Marketing Association.

Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. 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. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Marketing is further defined by the AMA as an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. The term developed from an original meaning which referred literally to 1

going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering marketing is "a set of processes that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches." The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably." A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. In this context, marketing is defined as "the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage." Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science, allowing numerous universities to offer Master-ofScience (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre- and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture.

MARKETING MIX Marketing mix is the set of marketing tools that a firm uses to pursue its marketing objectives in the target market. McCarthy has popularized a four factor classification of marketing tools known as the 4Ps of the marketing mix. They are: Product Price Place Promotion

Product: Product stands for the firms tangible offer to the market, including the product quality, design, features, branding and packing. It deals with new product development, product life cycle, product mix, product lines, branding and associated services to a product. From the customers point of view, it helps in satisfying the customers needs and wants. Price: Price is the monetary value of the product. Price deals with selecting the pricing objectives, setting the price, discounts, allowances, payment policies and credit terms. It is very important to the customers as it decides the cost the customer has to pay to gain the product value. Place: This marketing tool stands for the various activities the company undertakes to make the product accessible and available to the customer. It involves market size, channel selection and management, storage and physical distribution with the ultimate purpose of efficiently supplying the companys offer to the target market. To the customer, this marketing tool refers to convenience.

Promotion: Promotion stands for various activities the company undertakes to communicate and promote its products to the target market. It involves communication programs i.e. direct marketing, advertising, sales promotions, public relations and motivation of sales force. To the customer this tool provides knowledge and information. Promotion mix The set of activities undertaken by the company to communicate its products is called promotion mix. The Promotion Mix of a company includes the following tools; Advertising: It is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Direct Marketing: It refers to the use of mail, telephone and other non-personal contact tools to communicate with or solicit a response from specific customers and prospects. Personal Selling: Face to face interaction with one or more prospective purchasers for the purpose of making a sale refers to personal selling. Public Relations and Publicity: It refers to the variety of programs designed to promote and or protect a companys image or its individual products. SALES PROMOTIONS: The short-term incentive to encourage trial or purchase of a product or service refers to sales promotion. Whereas advertising offers a reason to buy; sales promotion offers an incentive to buy. Since sales promotion directly push up the sales, increasing number of companies are undertaking sales promotion activities. 4

Sales promotion is one of the five aspects of promotional mix. Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates Promotion activities/ strategies includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes. PURPOSE OF SALES PROMOTION Sales promotion tools vary in their specific objectives. They may be used to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion usually targets brand switchers because nonusers and users of other brands do not always notice a promotion. Sales promotions are thus also seen as a tool for breaking down loyalty to other products. PROMOTIONAL STRATEGIES It concerns with the element of a firm's decision-making concerned with choosing the most appropriate mix of advertising, sales promotion, personal selling and publicity for communication with its target market. OBJECTIVES OF PROMOTIONAL STRATEGY Promotional strategy objectives vary among organizations. Some use promotion to expand their markets, others to hold their current positions, still others to present a corporate viewpoint on a public issue. Promotional strategies can also be used to reach selected markets. Most sources identify the specific promotional objectives or goals of providing information, differentiating the product, increasing sales.

NEED FOR THE STUDY


The first decision for any company is to develop a brand name for its product. A brand name makes it easier for the seller to process order & track down problems. The brand name can only be possible only through promotion of a product. The seller's promotional activities may be copied by competitors. This is the reason why a company focuses on its promotional strategies. Promotion helps in buildings the corporate image is to be well utilized by the company. Promotion gives the seller the opportunity to a loyal & profitable set of customers. That is why a company is needed to study or develop the research program regarding its promotional activities in the customer's mind.

SCOPE OF THE STUDY


The present project is undertaken in the area of marketing. Since only the sales promotion strategy part of marketing has been discussed, this makes its scope of study very confined. Only few aspects have been covered to analyze the promotion strategies of the respondents (consumers). Study is restricted to various parts of Karimnagar. Time frame-there is limited time of 45 days. Analyze the promotional strategies of Mahindra.

OBJECTIVES OF THE STUDY


The study has been carried out to meet the following objectives. The main objective of the study is "PROMOTIONAL STRATEGIES OF PANCHASHEEL ENTERPRISES". 1. To study the sales promotion strategies of automobile companies. 2. To examine the sales position of Panchasheel enterprises. 3. To find out the promotional tools offered by the Panchasheel enterprises to increase the sales. 4. To study the various factors that will influence the sales of tractors. 5. To offer suggestions if any to improve the performance of Panchasheel enterprises, if any.

RESEARCH METHODOLOGY
Definition:Research is an organized inquiry designed and carried out to provide information for solving problems. Fred Kerlinger

Research is careful inquiry or examination to discover new information or relationships and to existing knowledge. - Francis Rammel Research design Research design is the plan for collecting the information related to the study. Research design explains the methods that are used for collecting the information. The research design will focus attention on the different methods that are used for collection of the data. Also it will help to solve the problem. Different forms of collecting the data will be tasted in the research design. In this case, survey method is used to collect the necessary data in the survey method, the personal interview is used to collect the information from the respondents, and questionnaires are used. The respondents are visited personally, and the detail information is collected related to the study. The question mainly focuses attention on the consumer loyalty to fulfil the objective of the study. The study of promotional strategies of Mahindra tractors is mainly concerned with the various promotional tools and techniques followed by Mahindra tractors to promote their products. DATA SOURCES The main data sources are: PRIMARY DATA: The primary data refers to original information gathered for a specific purpose and 9

provides up to date, accurate and relevant information and it is gathered in an investigation according to the needs of the problem. Tools Used To Collect The Primary Data: The primary data is collected on the basis of survey method with the help of questionnaires, and interviews, personal observation with consumers. Both open and closed end questions are used in the questionnaire. Methods: The survey method is used to collect the primary data with the help of questionnaire based on explorative and conclusive research. SECONDARY DATA: The secondary data can be defined as data collected by son\me one else for purposes other than solving problem being investigation and previously meant for another purpose. A secondary data is collected from the books, periodical journals, magazines, papers, company records, internet and other publications. Sampling Unit: It refers to the individuals who are to be surveyed in the study and it is the customer who is consuming or using or who has bought Samsung products are surveyed. Sample Size: It refers to the number of people surveyed for this topic, in the study 120 people were surveyed and responses drawn. Sampling technique: Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, 10

without incurring the cost or time required to select a random sample. Research instruments A structured questionnaire is used as an instrument for collecting the response from selected respondents.

11

LIMITATIONS
So much care has been taken to study this project, but the study is subjected to some limitations. They are As the time given for the completion of the project is limited. The accuracy of the answers depends upon the mode of interest of respondents. The number of sample size is limited to 120 respondents only. As the area is limited to Karimnagar only, the data collected from the consumers may not be same as the consumers of other area. As the data is collected from the customers, there is every possibility that the given information by the customers may not be correct as their opinion, attitudes etc., may differ from others.

12

INDUSTRY PROFILE
As commercialization of agriculture grew in intensity in the mid to late 1800s, the British Raj, the local legislatures and provinces began investing in agricultural development through support and establishment agricultural research farms and colleges and large scale irrigation schemes yet the level of mechanization was low at the time of independence in 1947. The socialist oriented five year plans of the 1950s and 60s aggressively promoted rural mechanization via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite this aggressiveness the first three decades after independence, local production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was nearly 140,000 units per year and by the late 1990s with production approaching 270,000 per year, India over-took the United States as the world's largest producer of four-wheel tractors with over 16 national and 4 multi-national corporations producing tractors today. Despite these impressive numbers FAO statistics estimate that of total agricultural area in India, less than 50% is under mechanized land preparation, indicating large opportunities still exist for agricultural mechanization. 1945 to 1960 War surplus tractors and bulldozers were imported for land reclamation and cultivation in 1940's. In 1947, central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960. 1961 to 1970 Local production began in 1961 with five manufacturers producing a total of 880 units per year. By 1965, this had increased to over 5000 units per year and the total in use had risen to over 52,000. By 1970, annual production had exceeded 20,000 units with over 146,000 units working in the country.

13

1971 to 1980 Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pattie Tractors) did not survive. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total in use passing the half million mark by 1980. 1981 to 1990 A further five manufacturers began production during this period but only one of these survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa. 1991 to 1997 Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997, annual production exceeded 255,000 units and the national tractor population had passed the two million mark. India now emerged as one of the world leaders in wheeled tractor production. 1997 to 1999 Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well established in the motor industry, began tractor production in Pune. In April of the same year, New Holland Tractor (India) Ltd. launched production of 70 hp tractors with matching equipment. The company is making a $US 75 million initial investment in a state of the art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen and Toubro have established a joint venture with John Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra and Grieves Ltd. will produce tractors under similar arrangements with Same Deutz-Fahr of Italy.

14

Looking to South American export markets, Mahindra and Mahindra is also developing a joint venture with Case for tractors in the 60-200 hp range. Total annual production was forecast to reach 300,000 during the following year. 1999 to Present Facing market saturation in the traditional markets of the North West (Punjab, Haryana, and eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002, sales went below 200,000. Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets. Sales remained in a slump, and added to the market saturation problems also came increased problems of "prestige" loan defaults, where farmers who were not financially able took tractors in moves to increase their families prestige. Government and private banks have both tightened their lending for this sector adding to the industry and farmers woes. By 2004, a slight up tick in sales once again due to stronger and national and to some extent international markets. But by 2006 sales once again were down to 216,000 and now in 2007-08 have slid further to just over 200,000. MAHINDRA STORY: In 1962, M&M formed a joint venture with International Harvester to make tractors carrying the name Mahindra name-plate for the Indian market. Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M-a major auto maker- developed its first tractor, the B-275. This successor to International Harvester's incredibly popular B-414 is still the basis for some current Mahindra models. Today, Mahindra is the third largest tractor manufacturer in the world with sales of nearly 85,000 units annually in 10 countries. This places them ahead of John Deere & Kubota. In India, Mahindra has been the number one selling brand since 1983.

15

Mahindra & Mahindra Ltd. (M&M) Mahindra & Mahindra is the most respected company in India. For its SUV model 'Scorpio,' the company won the National Award for outstanding in-house research and development. Bolero, Commander, Voyager is the popular brands of the company in automotive segment. Quick Facts Founder The two brothers, J.C. Mahindra and K.C. Mahindra and Ghulam Mohammed Country Year of Establishment Listings & its codes Plants Company Flashback: Mahindra & Mahindra Limited (M&M), the flagship company of US $ 2.59 billion Mahindra Group, has a significant presence in key sectors of the Indian economy. M&M is one of the most respected companies in India. The Company over the years has transformed itself into a Group that caters to the Indian as well as foreign markets with a presence in vehicles, farm equipment, information technology, trade and Akruli Road, Kandivli (East) finance related services, and infrastructure development. Now, they have started with Mumbai 400 101 a separate Sector, Mahindra Systems and Automotive Technologies (MSAT) in order Tel.: +(91)-(22)-28874601 to focus on developing components as well as offering engineering services. Nasik Mahindra & Mahindra currently employs around 11,600 people and has eight 89, MIDC Road No. manufacturing facilities spread over 500,000 square meters. The company has 17 49 Satpura, Nasik 007 sales offices that are supported by a network of over 780 dealers 422 the country. across Tel.: +(91)-(253)-2351496 The company's outstanding manufacturing and engineering skills allow it to innovate and launch new products constantly for the Indian market. Mouje Taluka: Nasik Tel.: 16 422 +(91)-(2553)-284226/ Talegaon Igatpuri 403 8 India October 2, 1945 NSE: M&M; BSE: 500520 Mumbai

Andhra

Pradesh

The "Scorpio", a SUV developed by the company from the ground up, resulted in the Company winning the National Award for outstanding in-house research and development from the Department of Science and Industry of the Government in the year 2003. In the community development sphere, M&M has implemented several programs that have benefited the people and institutions in its areas of operations. On the auspicious occasion of its 60th anniversary, the Company announced a range of CSR activities supported by a commitment of 1% of Profit after Tax for its CSR initiatives. Mahindra & Mahindra Ltd. Mahindra & Mahindra Limited (M&M) is the flagship company of US $ 2.59 billion Mahindra Group (F04 - US$ 1.96 billion, which has a significant presence in key sectors of the Indian economy. A consistently high performer, M&M is one of the most respected companies in the country. Set up in 1945 to make general-purpose utility vehicles for the Indian market, M&M soon branched out into manufacturing agricultural tractors and light commercial vehicles (LCVs). The company later expanded its operations from automobiles and tractors to secure a significant presence in many more important sectors. M&M has two main operating divisions - Automotive Division manufactures utility vehicles, light commercial vehicles and three wheelers. Tractor (Farm Equipment) Division makes agricultural tractors and implements that are used in conjunction with tractors, and has also ventured into manufacturing of industrial engines. Tractor Division has won the coveted Deming Application Prize 2003, making it the only tractor manufacturing company in the world to secure this prize. The Company has recently entered into a JV with Renault of France for the manufacture of a midsized sedan, the Logan, and with International Truck & Engine Corporation, USA, for manufacture of trucks and buses in India.

17

Project Sankraman - SAP R/3 Enterprise (4.7) Implementation on Centralized Architecture M&M entered into a new phase in technology initiatives from April 2005 by virtue of two important events:

Implementation of SAP R/3 Enterprise 4.7 on single instance and centralized architecture

Centralization of all servers located across various units to a single server at secure data centre located at Kandivli

Although the implementation work of the project was completed in F05, the postlaunch and benefit realization were major activities in F06. This signified M&M moving closer towards being a real-time organization. It provided access to new functionalities directly catering to the Indian taxation and auto industry requirements. It also facilitated standardization of business processes, harmonized master data and better system compliance. Single sign-on and role-based authorization features provided enhanced user experience. Organization-wide information now being available on single server resulted in on-line availability of consolidated information with drill-down up to transaction level. Implementation of SAP APO (Advance Planner and Optimizer) for Automotive Sector Implemented SAP APO at Farm Equipment Sector in F04, and rolled-out at Automotive Sector in F06. SCM processes are streamlined using SAP APO. Forecasting, planning, and decision support has been facilitated through on PPDS (Production Planning Demand Scheduling) & SNP (Supply Network Planning) modules. APO-DP (Demand Planning) facilitated collaborative planning between dealers and sales offices.

18

Roll - out of SAP SRM (Supplier Relationship Management) The objective of this project was to extend visibility of supply end of the value chain. The supplier portal - www.mahindrasrm.com - enables suppliers to do transactions and also track material supplied to M&M from the stages of receiving, bill passing & payment. M&M buyers get online information about e-invoice created by suppliers. Suppliers are also able to view analysis related to their supplies. As a result of the roll-out, all major suppliers are now accessing SRM portal. Implementation of Strategic Sourcing supporting sourcing module is now under process. Implementation of SAP DMS-CRM (Dealer Management System - Customer Relationship Management) It is essential for Auto OEMs to keep in close contact with the end consumers, build brand loyalty and provide total customer experience. Implementation of centrally hosted Mahindra Dealer Management System (DMS) covers - Marketing, Pre-sales, Sales, Services, Spares, Warranty, Dealer Financials, Analytics, CRM and Business Intelligence. The pilot involving 50+ dealer locations initiated last year is in the final phase of implementation, to be followed by roll-out across Mahindra Dealer Community. Appropriate infrastructure including dealer connectivity is being established. Implementation of SAP DMS-CRM has provided an additional opportunity to ensure process standardization and compliance across all dealers of M&M. Enhanced the ability to integrate a change more easily across the entire dealer chain. Facilitated better customer information management, end-customer database, along with seamless integration with back-end SAP systems.

19

Bar-coding Enabled Warehouse Management System at Spares Business Unit The Spares Business Unit (SBU) has a Warehouse at Wagholi. The spare parts required for Automotive & Farm Equipment Sector dealers are managed through this warehouse. Wireless hand-held terminals are used to scan the bar-codes on the component packs. The same is integrated with SAP R/3 System and being used to track the material during Pre-packing, Binning, Picking & Packing and error-free warehouse processes. This has facilitated substantial improvement in productivity and efficiency of warehouse staff to support high volume needs of the business. Implementation of SAP CFM (Corporate Finance Management) Loans, Investment SAP CFM were implemented in F05 for Corporate Finance function. This year focused on Forex module and Market risk analyzer. This has facilitated online monitoring of financial measures such as Forex exposures, Investment portfolios, Yield to Holding etc. Project Suraksha Considering the criticality of Information Security in current business environment an organization wide security project has been initiated leading to BS7799 Certification. The scope covers all Information assets in Paper or Digital format across all the locations of M&M and underlying IT Infrastructure. Organization wide information security policies and all the relevant systems & processes have been documented and published on company intranet. All business heads/ department heads are directly responsible for ensuring policy compliance. All the information and IT assets across locations have been identified, risk analysis carried out, risk mitigation plan defined by the users and concerned departmental heads supported by Information Security team. A well defined Information Security organization structure consisting of Apex council, Information Security Councils at each location and departmental representatives is in place. Information Security Cell within Corporate IT coordinates all activities related to this initiative.

20

M&M has deployed a world class Security Infrastructure, designed to both protect and enable business, thus ensuring Confidentiality, Integrity and Availability of the information systems at all times. Among the Security Infrastructure components are Firewalls & Intrusion Detection System, Antivirus Architecture, Virtual Private Network and Web Access, Strong Authentication, Anti-spam & Content Filtering. M&M has always been in the forefront of Information Technology adoption for business benefits. Today, Information Technology touches every corner of the business and enhances capabilities of every process taking M&M towards its IT vision of being the "Best IT Enabled Real-time Enterprise". M&M was one of the First organizations to implement SAP R/3 way back in 1998. It was the largest site in the world on Windows NT platform at that time. Today SAP R/3 Enterprise (version 4.7) integrates all the organizational processes across all the locations. Built on this platform, Information Technology has been extended to integrate with business partner processes through New Dimension solutions such as:

Supplier Relationship Management (SAP-SRM) - First to implement in Asia-Pacific region

Advance Planner & Optimizer (SAP-APO) - First to implement APO in India.

Dealer Management System - Customer Relationship Management (SAP DMS-CRM)

All these are driven with the objective of providing the best products and services to the customer at optimal cost and simultaneously ensuring the value to M&M's business partners. Other decision support and productivity improvement modules include:

Strategic Enterprise Management (SAP SEM - BCS) Business Information Warehouse (SAP BIW) Employee Self Service (ESS) through Enterprise Portal

21

Entire design process and product data management is through Team Center Enterprise from UGS All the above business solutions are effectively delivered through state-of-art Mahindra IT Infrastructure (MahindraNet) connecting all manufacturing plants, Corporate Office, regional offices, sales offices and Data Centers with the best in class security architecture, Network Operations Center to monitor and manage this network. Redundancy for power, network, bandwidth, hardware, Data Center and DRS set-up ensure almost 100% availability of applications to users. The whole organisation is geared towards complying with the BS 7799 information security standard, which adds to the confidence of M&M customers and partner organisations. M&M will be the first BS: 7799 certified organization in India, in the manufacturing sector, with such comprehensive scope. M&M users are using various value-added IT Services such as VPN, Desktop Web Conferencing - Video & Audio interaction from desktop, Video Conferencing - Video & Audio interaction and conferencing between multiple locations, Live Chats and FTP. Live Interactive chats have been a successful platform for M&M employees to communicate with Mahindra Senior Management. Senior executives share their vision, thoughts and also answer to queries from employees. This technology is used successfully for interaction between senior executives and subject experts during Finance Minister's Union Budget speech. The adoption of Information Technology has moved up the value chain, from cost savings to business enablement. The business benefits of various business solutions implemented have resulted in standardization, synergistic operations, inventory reduction, easier consolidation, and cycle time reduction and optimized business processes leading to faster operations and informed decision-making. However more importantly, IT has impacted all the business functions and processes in the organization, the value of which can be seen more in creation strategic capabilities - such as anytime, anywhere availability of secured information, 22

facilitating collaboration and improved communication within and outside the organization, effective leveraging knowledge within the organization for business benefits, enabling organization to be more customer centric and agile. BOARD OF DIRECTORS

Anand Mahindra Chairman & Managing Director Mahindra & Mahindra Rajeev Dubey President Group HR & Aftermarket Sector, Mahindra & Hemant Luthra Mahindra President Systech Sector S.P. Shukla President Group Strategy and Chief Brand Officer Anita Arjundas CEO Real Estate Sector and Managing Director, Mahindra S Durgashankar Lifespace Developers Executive Vice President - Mergers & Acquisitions Ruzbeh Irani Chief Executive International Operations, Automotive & Farm Equipment Divisions

Bharat Doshi Executive Director & Group CFO Pawan Goenka President Automotive & Farm Equipment Sectors Anoop Mathur President Two Wheeler Sector Ulhas Yargop President Information Technology Sector & CTO, Zhooben Bhiwandiwala Mahindra Group Executive Vice President & Managing Partner Mahindra C.P. Gurnani Partners Division Chief Executive Officer Mahindra Satyam Ramesh Iyer Managing Director Mahindra & Mahindra Financial Services and CEO Financial Services Sector 23

Romesh Kaul Global CEO Gears Business, Systech Sector Bishwambhar Mishra Chief Executive - Tractor & Farm Mechanization, Farm Equipment Rajiv Sawhney Sector CEO, Mahindra Holidays & Resorts India Ltd. Ashok Sharma Chief Executive - Auto & Farm Strategy, Agri and Allied Business

Harsh Kumar Managing Director Mahindra Intertrade & Mahindra Steel Service V.S. Parthasarathy Centre Group CIO, EVP Group M&A, Finance and Accounts, Pravin Shah Member of the Group Executive Chief Executive Automotive Board Division Rajan Wadhera Chief Executive Technology, Product Development and Sourcing, Automotive & Farm Equipment Sectors

24

PROFILE OF MAHINDRA SHOWROOM, KARIMNAGAR (M/s. Panchasheel Enterprises (Ailneni) Pvt. Ltd.) M/s. Panchasheel Enterprises (Ailneni) Pvt. Ltd., Karimnagar was established on 1s1 April. 1987. By nature, it is a sole proprietorship. Proprietor of the showroom is Mr. A. J. Anatha Rao. It is a not manufacturing unit and on the other hand it is a showroom for the products of MAHINDRA & MAHINDRA limited. This showroom is located at Karimnagar. Objectives of the Organization To sell the Mahindra & Mahindra products. To provide services to the ultimate consumers of the vehicle. To provide efficient & effective services to its consumers in time. To facilitate financial assistance to the consumers.

BRIEF HISTORY OF MAHINDRA TRACTORS 1945: On October 2, Mahindra & Mohammed formed 1945: The Company was renamed Mahindra & Mahindra Limited (M & M) Steel Trading business was started in association with suppliers in UK 1945: Business connections in USA through Mahindra Wallace 1950: The first business with Mitsubishi Corporation (for 5000 Tons) for building plates for supply from Yawata Iron & Steel 1953: Otis Elevator Co. (India) established 1956: Shares listed on the Bombay Stock Exchange Dr. 'Beck & Co. formed - a JV with Dr. Beck & Co. Germany 1957: Mahindra Owen formed - a JV with Ruble' Owen & Co. Ltd., UK 1958: Machine Tools Division started 25

1963: International Tractor Co. of India (ITCI) formed - a JV with International. Harvester Co., USA

1970: Mahindra Engineering & Chemical Products Ltd.(MECP) Commenced operations

1971: International Harvester collaboration ended 1979: License from Automobiles Peugeot, France for manufacture of XDP 4.90 Diesel Engines

1982: License from KIA for manufacture of 4 Speed Transmissions Mahindra brand of tractors born Siro Plast formed

1983: M&M becomes market leader in Indian Tractor Market (Position retained ever since)

1984: Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to assemble and market utility vehicles in Europe

Mahindra British Telecom (MBT) formed - a JV with British Tele communications plc (BT), UK acquired International instruments Ltd.

1989: Automotive Pressing Unit (now MUSCO Stampings) acquired from GKW

Introduction of Commander series Triton Over water Transport Agency Ltd., formed implementation of the Service Center project at Kahn Merged diverse activities of Steel, Machine Tools, Graphics into Inter trade Division

1994: Mahindra Realty & Infrastructure Developers Ltd. (MRIDL) formed Mahindra USA Inc., formed for distribution of Tractors in the USA EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic Company Ltd. A/S, Denmark Reorganization of the Group creating six Strategic Business Units MSL Division (Auto Components) hived off to form Mahindra Sona ltd. Mahindra Nissan Aileen Limited merged with tile Company 26

1996:Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor Co. USA to manufacture passenger cars. The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115 million

1997: A new die shop was inaugurated at Nasik Inauguration of the Mahindra United World College of India

1999: Launch of 'Bijlee' a battery operated, 3-wheeler environmental-friendly vehicle. The largest online used vehicle website in India launched by Mahindra Network Services. The business of Inter trade Division and Mahindra Exports Ltd. combined and renamed Mahindra Inter trade ltd.. The Company acquired major stake in Gujarat Tractors. Mahindra & Mahindra Financial Services Limited becomes a subsidiary of M&M

2001: A 3-wheeler diesel vehicle "Champion" is launched. The Company launches Mahindra MaXX a MUV positioned with the caption Maximum Space, Maximum Comfort. M&M ties up with Renault for petrol engines. M&M established a separate division to provide Defense Solutions

27

AWARDS 2012: Mahindra receives the Gold award for 'Brand Communicator of the Year' at the 9th Asia Pacific PR Awa Mahindra's Auto&Two wheeler sectors receive top awards from automotive media Mahindra announces Mahindra Samriddhi India Agri Awards 2012 Mahindra Navistar Recognizes the Heroes of the Indian Transport Industry Mahindra and Mahindra honours Indian farmers at the Mahindra Samriddhi India Agri Awards 2012

Mahindra XUV500 to open All India bookings from 8th June 2012
Mahindra Finance receives the Information Week Edge awards

Mahindra was honoured with the 6th Social and Corporate Governance Awards 2010 by Bombay Stock Exchange Limited in the category of BEST CORPORATE SOCIAL RESPONSIBILITY PRACTICE for its Esops Initiative.

Nashik Plant was awarded the prestigious JSW TOI Earth Care Award 2010 for Excellence in Climate Change Mitigation & Adaptation

MHRIL's Club Mahindra Tusker Trail (CMTT), Thekkady received the coveted Rotary-Binani Zinc CSR Award in association with NIPM Kerala Chapter.

Mahindra & Mahindra was the proud recipient of the India Shining Star CSR Award for the exceptional work it has done in the Automobile Sector.

Mahindra Finance won the award for "Best in Corporate Social Responsibility Practice

Mahindra and Mahindra received prestigious Annual PRCI (Public Relations Council of India) Awards under 3 categories: 28

Corporate Brochure - Lifeline Express - Silver Award Newsletter (Tabloid) - Esops Digest - Bronze Award

Corporate Film - Documentary film on Bihar Flood Rehabilitation at Pattori - Bronze Award

2011: Anand Mahindra receives Business Leader of the Year Award at Asian Awards 2011 held in London Mahindra Excellenc in Theatre Awards kicks off in the city Mahindra partners Zee News for India Agri Awards 2011 Mahindra honours Indian farmers at the first Mahindra Samriddhi India Agri Awards 2011 2010: Mahindra Excellence in Theatre Awards Celebrates its 5th Anniversary Mahindra Group wins a record 9 awards at the annual ABCI awards nite

About Farm Equipment Manufacturers leaders in India. Poised to take on the world. For over two decades, Mahindra Tractors is the undisputed leader of the Indian tractor market, which is the largest tractor market in the world. A division of over US$ 6 billion conglomerate, Mahindra & Mahindra, we began as a joint venture with International Harvester. And with that began a new era in power, control and reliability in farm equipment manufacturing. Today, with the largest manufacturing set up in India, Mahindra Tractors is among the top three players in the global market. And as we step into the 27th year of excellence, we continue on our journey of cultivating golden harvests across the globe. Mahindra Tractors conferred with the global honour.

29

In the year 2003, Mahindra Tractors bagged the Deming Prize, a global honour for quality practices. Three years later, the company was eligible to qualify for the Japan Quality Medal, the highest honour for excellence in Total Quality Management practices. In 2007, Mahindra Tractors became one of the 20 companies worldwide to receive this rare honour. Till date, we are the only tractor company in the world to bag this prestigious award. Mahindra Tractors goes global. Mahindra Tractors have reached all four corners of the world. And wherever we went, weve proved ourselves nothing less than the best. That explains the great demand for Mahindra tractors across the United States, Australia, Brazil, Turkey, South Africa & Syria etc among many more. In the US market, Mahindra USA, a subsidiary company of Mahindra tractors, sells more than 10,000 tractors annually. A nationwide network of over 300 dealers, total product support and prompt after sales service ensure that every tractor functions for years without any hassles. Another big leap took us past the Great Wall of China. We acquired Jiangling Motor Co., to form Mahindra China Tractor Company Ltd. (MCTCL). Started operation with Jiangsu Yueda Yancheng Tractor Manufacturing Co. in the year 2008 & formed MYYTCL.The 18-35 HP tractors manufactured here cater to domestic as well as overseas markets. From China, we crossed the Pacific Ocean and entered the Australian farms. Assembled at Mahindra Australia, these tractors are sold all over the Australian continent. The variety includes a range of 2WD and 4WD compact tractors (20-30 HP range) and utility tractor models (45-85 HP range) along with attachments like loaders and mowers. These attachments can also be put to multiple uses with utmost reliability and ease. Heading eastwards from Australia, we entered the European continent and launched Mahindra Tractors at the Novi Sad fair in May 2005. Today, we have a significant presence in Turkey, Macedonia and Serbia.

30

In the massive African continent, we have already spread across 20 countries that include Angola, Tchad, Democratic Republic of Congo, Mali, Morocco, Nigeria, Sudan, The Gambia, Zambia, Egypt, Algeria, Ghana, Niger, Uganda, Tanzania, Mallawi, Mozambique, Zimbabwe, Botswana & South Africa. Besides that we have set up assembly plants in Ghana, The Gambia, Nigeria Mali & Tchad, which were technically guided and commissioned along with our channel partners in these countries. And it wont be too long before our brand of red tractors are found across the rest of the African continent. But the journey doesnt end here. We look forward to tapping the remotest farms of the globe and continue to cultivate countless smiles. Various products of Mahindra & Mahindra available in this showroom are: Tractors, Autos, and other Agricultural implements.

31

Models in Tractors MAHINDRA BHOOMIPUTRA BHOOMIPUTRA BHOOMIPUTRA BHOOMIPUTRA SARPANCH SARPANCH SARPANCH SARPANCH ARJUN ARJUN ARJUN 275 DI 265 Dl 275 DI 475 DI 575 DI 265 DI 275 DI 475 DI 575DI 605 DI ULTRA CRPTO

Others agricultural implements available in Panchasheel Enterprises are: Disk plough, Cultivators, Harvesters, Spring cultivators etc.

32

MAHINDRA TRACTORS - MODELS NBP SERIES MODEL : 235 DI ENGINE HP: 24 HP

This single cylinder air cooled tractor is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well. MODEL : 245 DI ENGINE HP: 27 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well.

33

MODEL : 275 DI ENGINE HP: 39 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well. MODEL : 475 DI ENGINE HP: 42 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well.

34

MODEL : 575 DI ENGINE HP: 45 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well. MODEL : 585 DI ENGINE HP: 50 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well.

35

NST SERIES MODEL : 265 DI ENGINE HP: 32 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping. MODEL : 275 DI ENGINE HP: 39 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping.

36

MODEL : 475 DI ENGINE HP: 42 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping. MODEL : 575 DI ENGINE HP: 45 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping.

37

MODEL : 595 DI ENGINE HP: 52 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping. MODEL : 585 DI ENGINE HP: 50 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping.

38

Ultra SERIES MODEL : 445 DI ENGINE HP: 42 HP

These tough and reliable tractors are designed to perform multiple tasks and take on the rigors of work with ease. They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing. MODEL : 555 DI ENGINE HP: 52 HP

These tough and reliable tractors are designed to perform multiple tasks and take on the rigors of work with ease. They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing.

39

MODEL : 605 DI ENGINE HP: 59 HP

These tough and reliable tractors are designed to perform multiple tasks and take on the rigors of work with ease. They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing.

40

INTRODUCTION
PROMOTION Promotion is one of the market mix elements. The specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand

equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are: 1. To present information to consumers as well as others. 2. To increase demand. 3. To differentiate a product. Definition: Generally, promotion is communicating with the public in an attempt to influence them toward buying your products and/or services. How does promotion differ from advertising? Promotion is the broader, all inclusive term. Advertising is just one specific action you could take to promote your product or service. Promotion, as a general term, includes all the ways available to make a product and/or service known to and purchased by customers and clients. The word promotion is also used specifically to refer to a particular activity that is intended to promote the business, product or service. A store might advertise that it's having a big promotion on certain items, for instance, or a business person may refer to an ad as a promotion. There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product.

41

Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product. The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common. Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates Sales promotions can be directed at the customer, sales staff,

or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes. Several factors influence the development of sales promotion with the first being increased similarities between brands and price sensitivity, coupled with reduced consumer brand loyalties. Without real or significant product differentiation, consumers have become more reliant on price or price-related incentives (coupons, penny-off deals, refunds, giveaways and competitions). A second factor contributing to the development of sales promotion is the fractionalization of markets, coupled with rising media costs.

42

A third factor has been the concentration on brand management organizational structures that lends itself to short-term sales response rather than long-term growth. A fourth and final factor illustrating the development of sales promotion has been consumer responsiveness. Many consumers participate on a regular basis in some form of sales promotion (Kitchen, 1999)." Types of Sales Promotions In order to understand how effective sales promotion is in influencing consumer purchase decisions, one has to take a closer look at marketing and consumer behavior theories. This article will focus on critically analyzing the relevant concepts and theories relating to sales promotion and the consumer purchase decision. The selected path will cover a wide range of topics, from the broader concepts of marketing communications mix to the more specific concepts of sales promotions and the consumer purchasing process. Promotion: Burnett (1993) defines promotion as the marketing function concerned with persuasively communicating to target audience the components of the marketing program in order to facilitate exchange between the marketer and the consumer and to help satisfy the objectives of both. Consumer Sales Promotions: Clow and Baack (2002) define consumer sales promotions as the incentives aimed at the firms customers. These customers are the end users of the product and do not resell to another business. The various types of consumer sales promotions are as follows: 1. Coupons 2. Premiums 3. Contests and Sweepstakes 4. Refunds and Rebates 5. Sampling 6. Bonus Packs 7. Price-offs Coupons: A coupon is a price reduction offer to a consumer. It may be a percentage off the retail price such as 25 percent or 40 percent, or an absolute amount. 43

Premiums: Premiums are prizes, gifts, or other special offers that consumers receive when purchasing products. When a company offers a premium, the consumer pays full price for the product or service, in contrast to coupons, which are price reductions. Contests and Sweepstakes: Contests normally require the participant to perform some type of activity. The winner is selected based on who performs best or provides the most correct answers. Often, contests require the participants to make a purchase to enter, whereas no purchase can be required to enter a sweepstakes. Consumers may enter as many times as they wish. It is permissible for firms to restrict customers to one entry per visit to the store or some other location. The chances of winning sweepstakes are on a probability factor. When planning a sales promotion, what should your basic objective be? Several sales promotion theories are explored in this article, offering different points of view that you can adapt to your own business situation. Refunds and Rebates: Refunds and rebates are cash returns offered to consumers following the purchase of a product. Consumers pay full price for the product but can mail in some type of proof of purchase, and then the manufacturer refunds a portion of the purchase price. A refund is a cash return on what are called soft goods such as food or clothing. Rebates are cash returns on hard goods, which are major ticket items such as automobiles. Sampling: Sampling is actual delivery of a product to consumers for their use or consumption. Normally, samples are provided free of charge. Often a coupon or price-off incentive then is used to persuade the consumer to make a purchase of a larger version of the product, such as a full-size package. Sampling can be of various types: 1. In-store distribution 2. Direct sampling 3. Response sampling 4. Cross-ruff sampling 5. Media sampling 44

6. Professional sampling 7. Selective sampling Bonus packs: When an additional or extra number of items is placed in a special product package, it is called a bonus pack. Price-offs: A price-off is a temporary reduction in the price of a product to the consumer (Clow and Baack, 2002). Joint Promotions Sales promotions involve high costs and, hence, companies are always looking for ways to reduce the cost of promotions but still maintain the effectiveness of the promotional activities being carried out. This is where companies use joint promotions. Smith and Taylor (2003) state that joint promotions or cross promotions offer economical routes to target the same customers with relevant offers. Integrated Promotions Shimp (1997) defines integrated marketing communications as the process of developing and implementing various forms of persuasive communication programs with customers and prospects over time. Many methods are available to entice consumers to take the final step and make a purchase. Advertising creates interest and excitement and can be used to offer the deal that brings the consumer into the store. At the same time marketers use other tactics like consumer promotions in conjunction with advertising programs to generate sales (Clow and Baack 2002). Since more and more companies are using sales promotions in order to win consumers, it is highly essential for companies to develop integrated promotion strategies, i.e. integrating sales promotion with other marketing communication tools like advertising, point-of-sale, etc to increase the visibility and the impact of the campaign. Smith and Taylor (2003) state that media-supported promotions do better than ones that are not supported. 45

Objectives of Sales Promotion According to Smith and Taylor (2003), some typical sales promotion goals might be as follows:

Increase sales (although it may only be a temporary increase because customers can simply stock up with the goods or temporarily switch brands while the promotion is running)

Develop new sales leads Move excess stock Block a competitor Match a competitor Build a database Generate Publicity

Sales Promotion Capabilities 1. Invigorate Sales of a Mature Brand: Sales promotions cannot reverse the sales decline for an undesirable product or brand. However, sales promotions can invigorate sales of a mature product that requires a shot in the arm. 2. Neutralize Competitive Advertising and Sales Promotions: Sales promotions can be used to offset competitors' advertising and sales-promotion efforts. 3. Obtain Trial Purchases from Consumers: Marketers depend on free sample, coupons, and other sales promotions to encourage trial purchases of new products. Many consumers would never try new products or previously untried established brands without these promotional inducements. 4. Hold Current Users by Encouraging Repeat Purchases: Strategic use of certain forms of sales can encourage repetitive purchasing, helping reduce brand switching by consumers. 5. Increase Product Usage by Loading Consumers: Consumers tend to use more of certain products (e.g., snack foods and soft drinks) when they have more of them available in their homes. 46

6. Preempt Competition by Loading Consumers: When consumers are loaded with one companys brand, they are temporarily out of marketplace for competitive brands. Hence, one brands sales promotion serves to preempt sales of competitive brands. 7. Reinforce Advertising: An advertising campaign can be strengthened greatly by a well coordinated sales promotion effort (Shimp, 1997). Need for Product Promotion a) To introduce a new product in the market. b) To influence the public with the help of new uses of the product. c) To increase the frequency of purchase by each buyer. d) To encourage dealers to stock more goods. e) To withstand in the competitive field. f) To increase the sales by imparting special training to salesmen and by window display. Effects of Promotion 1. The present day market is very competitive due to the large number of rivals and substitutes. With the help of promotion producer must create product differentiation in the minds of consumers. 2. Promotion is very essential to communicate the use of the product and the nature of the product to consumers and middlemen 3. Nowadays most of the consumers market their products in wider area and the consumers are also very large in number. In such cases personal selling alone cannot be used and so all the steps for promotion are to be followed. 4. During the periods of depression it is essential to maintain at least some minimum market. Therefore it is very essential to use promotion.

47

Promotional Strategies

There are many different types of promotional strategies a company can implement, and promotional products are just one of them. You need to have complete campaign and strategy in place. Here are a few strategies that can be employed. 1. Media releases Media releases are a great way to get information about your product, service or company out to a large amount of potential customers. If you can put information about your product into an interesting story then there is a chance your story will be picked up. Remember it must be interesting for people or it will not be grabbed. 2. Events Is your event going to be memorable? Are people going to feel like friends visiting or like walking wallets? Spend a little extra, make them feel welcome and get to know people. Yes, you are there for a purpose, however people expect a good time at events and you want to make sure they leave with a favourable impression. 3. Networking Networking within your industry and clients is a great way to get yourself and you product noticed. Attend networking functions, have a good story or joke ready, and they will be sure to remember you for the right reasons.

48

4. Sales Pitches A great sales pitch consists of not only showing the prospect your product. You are also selling yourself. Be likeable, bring along morning or afternoon tea, and be memorable. 5. Follow-up with clients Once you have spoken with a client it is important to follow up my mail or email, if only to confirm with them the items you discussed. This also sets the tone for further talks and reminds them that they are important to you. 6. Promotional products Promotional products can be used to accomplish several things. They can motivate customers to use your product or service, increase attendance at conferences or trade booths, thank loyal customers, for attracting staff, and for rewarding staff. When choosing a promotional product think of the goal you are trying to achieve.

7. Talk to us!! Promo Sales consultants are happy to have a chat about what you need from you promotion. We are always interested in hearing from you and want to see your promotion succeed.

49

CONSUMER SALES PROMOTION STRATEGIES Price deal: A temporary reduction in the price, such as 50% off.

Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards.

Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package.

Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).

Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales

Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery.

On-shelf couponing: Coupons are present at the shelf where the product is available.

Checkout dispensers: On checkout the customer is given a coupon based on products purchased.

On-line couponing: Coupons are available online. Consumers print them out and take them to the store.

Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption.

Online interactive promotion game: Consumers play an interactive game associated with the promoted product.

Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer.

Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product.

Point-of-sale displays:

Aisle interrupter: A sign that juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: A bin full of products dumped inside. 50

Glorifier: A small stage that elevates a product above other products. Wobbler: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon placed on the 'neck' of a bottle. YES unit: "your extra salesperson" is a pull-out fact sheet. Electroluminescent: Solar-powered, animated light in motion. Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each regular meal purchased.

Trade sales promotion techniques

Trade allowances: short term incentive offered to induce a retailer to stock up on a product.

Dealer loader: An incentive given to induce a retailer to purchase and display a product.

Trade contest: A contest to reward retailers that sell the most product. Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your product on the spot.

Training programs: dealer employees are trained in selling the product. Push money: also known as "spiffs". An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function .

Retail Mechanics

Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new marketing initiatives.

Buy x get y free a.k.a. BOGOF for Buy One Get One Free Three for two

51

Buy a quantity for a lower price Get x% of discount on weekdays.

Political issues Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964. Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the most strict regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls. Promotion Concept Development Process Promotion concepts are never developed in isolation. It is only with a clear understanding of each of the following components of the overall assignment, can the right "Concept" be created.

Brand or Corporate Objectives Promotional Objectives Brand Profile, Image and Personality Knowledge of the Target Audience Promotion Strategies Promotion Tactic

In addition to knowing the Strategies and Tactics that need to be employed, every promotion concept must be relevant to the target audience!

52

1. Who influenced you to buy this tractor?

TABLE-1 S. NO 1 2 3 4 5 6 TOTAL CHART-1 OPINION Friend Advertising Relatives Brand image Self Others NO.OF RESPONDENTS 22 30 30 28 10 0 120 PERCENTAGE RESPONDENTS 18% 25% 25% 23% 8% 0% 100% OF

30% Percentage of respondents 25% 25% 20% 15% 10% 5% 0% 0% Friend Advertising Relatives Brand image Self Others 8% 18% 25% 23%

Opinion PERCENTAGE OF RESPONDENTS

INTERPRETATION: The above graph shows that 25% of respondents said that advertising of Mahindra Tractors influenced them to purchase the Mahindra tractors. 25% of respondents said that their relatives and 23% of respondents said that brand image of Mahindra Tractors influenced them to purchase the Mahindra tractors. 18% of respondents said that their friends and 8% of respondents said that their self decision influenced them to purchase the Mahindra tractors.

53

2. Which brand advertisement has the greatest appeal?

TABLE-2 PERCENTAGE OF RESPONDENTS 27% 21% 33% 19% 100%

S. NO 1 2 3 4 TOTAL

OPINION Sonalika Eicher Mahindra John Deere

NO.OF RESPONDENTS 32 25 40 23 120

CHART-2
35% Percentage of respondents 30% 25% 20% 15% 10% 5% 0% Sonalika Eicher Opinion PERCENTAGE OF RESPONDENTS Mahindra John Deere 27% 21% 19% 33%

INTERPRETATION: The above graph shows that 33% of respondents said that Mahindra brand advertisement has the greatest appeal. 26% of respondents said that Sonalika brand advertisement has the greatest appeal. 20% of respondents said that Eicher brand advertisement has the greatest appeal. 19% of respondents said that John Deere brand advertisement has the greatest appeal.

54

3. Which is the motivating factor to buy Mahindra tractors?

TABLE-3 S. NO 1 2 3 4 5 TOTAL CHART-3


35% Percentage of respondents 30% 25% 20% 15% 10% 5% 0% Price Model Quality Opinion PERCENTAGE OF RESPONDENTS Good Service Brand 12% 12% 21% 22% 33%

OPINION Price Model Quality Good Service Brand

NO. OF RESPONDENTS 25 26 40 14 15 120

PERCENTAGE OF RESPONDENTS 21% 22% 33% 12% 12% 100%

INTERPRETATION: The above graph shows that 33% of respondents said that quality is the motivating factor to buy Mahindra tractors, 22% said that models are the motivating factor, 21% said that price, 12% said good sercice is the motivationsl factor and 12% said that brand is the motivational factor to buy Mahindra tractors.

55

4. How did you come to know about Mahindra tractors? TABLE-4 NO. OF RESPONDENTS 25 35 22 15 23 120 PERCENTAGE OF RESPONDENTS 21% 29% 18% 13% 19% 100%

S. NO 1 2 3 4 5 TOTAL CHART-4
35% Percentage of respondents 30% 25% 20% 15% 10% 5% 0% 21%

OPINION Pamphlets TV Ads Wall Painting Magazines News papers

29%

18% 13%

19%

Pamphlets

TV Ads

Wall Painting Opinion

Magazines

News papers

INTERPRETATION: The above graph shows that 29 % of respondents said that they came to know about the Mahindra tractors through TV ads. 21% of respondents said that they came to know about the Mahindra tractors through Pamphlets. 19% of respondents said that they came to know about the Mahindra tractors through Newspapers. 18% of respondents said that they came to know about the Mahindra tractors through wall paintings. 13% of respondents said that they came to know about the Mahindra tractors through Magazines.

56

5.Do you think that Mahindra tractors have positive word of mouth publicity? TABLE-5 NO. OF RESPONDENTS 100 20 120 83% 17% 100% PERCENTAGE OF RESPONDENTS

S. NO 1 2 TOTAL

Opinion Yes No

CHART-5
90% Percentage of respondents 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes Opinion PERCENTAGE OF RESPONDENTS No 17% 83%

INTERPRETATION: The above graph shows that 83% of respondents agreed that Mahindra tractors have positive word of mouth publicity and 17% of respondents disagreed that Mahindra tractors have positive word of mouth publicity.

57

6.What is your reaction if the promotion was stopped? TABLE-6 NO. OF RESPONDENTS 20 60 40 120 PERCENTAGE OF RESPONDENTS 17% 50% 33% 100%

S. NO 1 2 3 Total

OPINION I will stop purchasing I will not purchasing Im not sure stop

CHART-6

60% Percentage of respondents 50% 50% 40% 30% 20% 10% 0% I will stop purchasing I will not stop purchasing Opinion PERCENTAGE OF RESPONDENTS Im not sure 17% 33%

INTERPRETATION: The above graph shows that 50% of respondents said that they will not stop purchasing if the promotion of Mahindra was stopped, 33% of respondents said that they are not sure and 17% of respondents said that they will stop purchasing if the promotion of Mahindra was stopped.

58

7. What are the factors do you consider when you purchase the tractors? TABLE-7 NO. OF RESPONDENTS 35 20 25 40 120 PERCENTAGE OF RESPONDENTS 29% 17% 21% 33% 100%

S. NO 1 2 3 4 Total

OPINION Parents suggestions Friends suggestions T.V ads Old customer

CHART-7
35% Percentage of respondents 30% 25% 20% 15% 10% 5% 0% Parents suggestions Friends suggestions Opinion PERCENTAGE OF RESPONDENTS T.V ads Old customer 17% 29% 21% 33%

INTERPRETATION: The above graph shows that 33 % of respondents said that they consider the old customers while purchasing the Mahindra tractors. 29% of respondents said that they consider the parents suggestions, 21% of respondents consider the TV ads and 17% of respondents said that they consider the friends suggestions while purchasing the Mahindra tractors. 59

8. What attributes you like in the Mahindra tractors?

TABLE-8 NO. OF RESPONDENTS 28 40 25 27 120 PERCENTAGE OF RESPONDENTS 23% 33% 21% 23% 100%

S. NO 1 2 3 4 Total

OPINION New designs Brand image Price of the tractor Promotional activities

CHART-8
35% Percentage of respondents 30% 25% 20% 15% 10% 5% 0% New designs Brand image Price of the tractor Promotional activities 23% 21% 23% 33%

Opinion PERCENTAGE OF RESPONDENTS

INTERPRETATION: The above graph shows that 33% of respondents like the brand image of Mahindra tractors. 23% of respondents like the new designs, 23% of respondents like the promotional activities and 21% of respondents like the price rates of Mahindra tractors.

60

9. Are you aware of any campaign of Mahindra tractors?

TABLE-9 NO. OF RESPONDENTS 80 40 120 PERCENTAGE OF RESPONDENTS 67% 33% 100%

S. NO 1 2 Total

OPINION Yes No

CHART-9
80% Percentage of respondents 70% 60% 50% 40% 30% 20% 10% 0% Yes Opinion PERCENTAGE OF RESPONDENTS No 33% 67%

INTERPRETATION: The above graph shows that 67% of respondents said that they are aware of campaign of Mahindra tractors and 33% of respondents said that they are unaware of campaign of Mahindra tractors

61

10. Do you believe that Mahindra tractors have a genuine commitment in creating efficient and effective promotional tools? TABLE-10 NO. OF RESPONDENTS 50 30 40 120 PERCENTAGE OF RESPONDENTS 42% 25% 33% 100%

S. NO 1 2 3 Total CHART-10
45% Percentage of respondents 40% 35% 30% 25% 20% 15% 10% 5% 0%

OPINION Yes No Not clear

42% 33% 25%

Yes

No Opinion PERCENTAGE OF RESPONDENTS

Not clear

INTERPRETATION: The above graph shows that 42% of respondents said that Mahindra tractors have a genuine commitment in creating efficient and effective promotional tools. 33% of respondents said that they are unclear and 25% of respondents said that Mahindra tractors dont have a genuine commitment in creating efficient and effective promotional tools.

62

11. In your view, what is the promotional strategy followed by Mahindra tractors? TABLE-11 NO. OF RESPONDENTS 30 20 30 40 120 PERCENTAGE OF RESPONDENTS 25% 17% 25% 33% 100%

S. NO 1 2 3 4 Total

OPINION Direct marketing Retailers Dealers All the above

CHART-11
35% percentage of respondents 30% 25% 20% 15% 10% 5% 0% Direct marketing Retailers Opinion PERCENTAGE OF RESPONDENTS Dealers All the above 17% 25% 25% 33%

INTERPRETATION: The above graph shows that 33% of respondents opined that Mahindra tractors follow direct marketing, retailing and dealership as promotional strategies. 25% of respondents opined that Mahindra tractors follow direct marketing, 25% of respondents opined that Mahindra tractors follows dealership and 17% of respondents opined that Mahindra tractors follows retailing as promotional strategis.

63

12. Do Mahindra tractors participated in any tradeshows or exhibitions?

TABLE-12 NO. OF RESPONDENTS 50 40 30 120 PERCENTAGE OF RESPONDENTS 42% 33% 25% 100%

S. NO 1 2 3 Total

OPINION Yes No Not clear

CHART-12
45% Percentage of respondents 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Opinion PERCENTAGE OF RESPONDENTS Not clear 33% 25% 42%

INTERPRETATION: The above graph shows that 42% of respondents said that Mahindra tractors participated in tradeshows or exhibitions. 33% of respondents said that Mahindra tractors dont participated and 25% of respondents said that they are not clear about the participation of Mahindra tractors in tradeshows or exhibitions.

64

13. Do they design banners and advertising copies to promote their products?

TABLE-13

S. NO 1 2 3 Total CHART-13
60% percentage of respondents

OPINION Yes No Not clear

NO. OF RESPONDENTS 60 40 20 120

PERCENTAGE OF RESPONDENTS 50% 33% 17% 100%

50% 50% 40% 30% 20% 10% 0% Yes No Opinion PERCENTAGE OF RESPONDENTS Not clear 17% 33%

INTERPRETATION: The above graph shows that 50% of respondents said that Mahindra design banners and advertising copies to promote their products. 33% said that Mahindra dont design and 17% of respondents said that they are not clear about the designing of banners and advertising copies by Mahindra to promote their products

65

14. Do Mahindra tractors provide credit sales to customer?

TABLE-14 PERCENTAGE OF RESPONDENTS 46% 29% 25% 100%

S. NO 1 2 3 Total CHART-14
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

OPINION Yes No Not clear

NO. OF RESPONDENTS 55 35 30 120

46%

Percentage of respondents

29% 25%

Yes

No Opinion PERCENTAGE OF RESPONDENTS

Not clear

INTERPRETATION: The above graph shows that 46% of respondents said that Mahindra tractors provide credit sales to customer, 29% said that Mahindra dont provide credit sales to customer and 25% of respondents not clear about the statement.

66

15. Do Mahindra advertised about their product in any news paper, magazine or T.V.?

TABLE-15

S. NO 1 2 3 Total

OPINION Yes No Dont know

NO. OF RESPONDENTS 60 35 25 120

PERCENTAGE OF RESPONDENTS 50% 29% 21% 100%

CHART-15
60% percentage of respondents 50% 50% 40% 30% 20% 10% 0% Yes No Opinion PERCENTAGE OF RESPONDENTS Dont know 29% 21%

INTERPRETATION: The above graph shows that 50% of respondents know that Mahindra is advertising about their products in news paper, magazine and T.V. 29% of respondents know that Mahindra is not advertising and 21% of respondents dont know that Mahindra is advertising about their products in news paper, magazine and T.V. 67

16. What do you think is the more beneficial promotional tool for Mahindra? TABLE-16 NO. OF RESPONDENTS 15 30 25 mouth 50 120 PERCENTAGE OF RESPONDENTS 13% 25% 20% 42% 100%

S. NO 1 2 3 4 Total

OPINION Net promotion Print media TV Word of publicity

CHART-16

PERCENTAGE OF RESPONDENTS
Percentage of respondents 50% 40% 30% 20% 10% 0% Net promotion Print media Opinion PERCENTAGE OF RESPONDENTS TV Word of mouth publicity 13% 25% 20% 42%

INTERPRETATION: The above graph shows that 42% of respondents said that mouth publicity and 25% of respondents said that print media is the best promotional tool for Mahindra. 21% of respondents said that TV is the best promotional tool and 3% of respondents said that net promotion is the best promotional tool for Mahindra.

68

17. Mahindra tractors give proper demonstration of their product to the customers. How do you agree with the statement? TABLE-17 PERCENTAGE OF RESPONDENTS 20% 13% 25% 20% 22% 100%

S. NO 1 2 3 4 5 Total

OPINION Strongly agree Agree Neutral Disagree Strongly disagree

NO. OF RESPONDENTS 25 15 30 24 26 120

CHART-17
30% Percentage of respondents 25% 25% 20% 20% 15% 10% 5% 0% Strongly agree Agree Neutral Opinion PERCENTAGE OF RESPONDENTS Disagree Strongly disagree 13% 20% 22%

INTERPRETATION: The above graph shows that 25% of respondents neutrally agreed and 22% of respondents strongly disagreed that Mahindra tractors give proper demonstration of their product to the customers. 20% of respondents strongly agreed, 20% of respondents disagreed and 13% of respondents agreed that Mahindra tractors give proper demonstration of their product to the customers. 69

18. Do Mahindra tractors supply any advertising material which specifies their name and products?

TABLE-18

S. NO 1 2 3 Total

OPINION Yes No Not clear

NO. OF RESPONDENTS 50 40 30 120

PERCENTAGE OF RESPONDENTS 42% 33% 25% 100%

CHART-18
45% Percentage of respondents 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Opinion PERCENTAGE OF RESPONDENTS Not clear 33% 25% 42%

INTERPRETATION: The above graph shows that 42% of respondents expressed that Mahindra tractors supply some advertising material which specifies their name and products. 33% of respondents expressed that Mahindra tractors dont supply and 25% of respondents having no idea regarding Mahindra tractors supply some advertising material which specifies their name and products.

70

19. How Mahindra market their products?

TABLE-19

S. NO 1 2 3 4 Total

OPINION Direct marketing Retailers Dealers All the above

NO. OF RESPONDENTS 30 20 25 45 120

PERCENTAGE OF RESPONDENTS 25% 17% 21% 38% 100%

CHART-19
40% percentage of respondents 35% 30% 25% 20% 15% 10% 5% 0% Direct marketing Retailers Opinion PERCENTAGE OF RESPONDENTS Dealers All the above 17% 25% 21% 38%

INTERPRETATION: The above graph shows that 38% of respondents said that Mahindra market their products through direct marketing, retailers and dealers. 25% of respondents is direct marketing only, 20% of respondents use dealers and 17% of respondents said that Mahindra market their products through retailers.

71

20. Do they have any point of purchase displayed at their showroom? TABLE-20 NO. OF RESPONDENTS 60 40 20 120 PERCENTAGE OF RESPONDENTS 50% 33% 17% 100%

S. NO 1 2 3 Total

OPINION Yes No Not clear

CHART-20
60% percentage of respondents 50% 50% 40% 30% 20% 10% 0% Yes No Opinion PERCENTAGE OF RESPONDENTS Not clear 17% 33%

INTERPRETATION: The above graph shows that 50% of respondents said that Mahindra has a point of purchase displayed at their showroom. 33% of respondents said that Mahindra dont have and 17% of respondents are unclear that Mahindra has a point of purchase displayed at their showroom

72

FINDINGS
1. 25% of customers said that advertisements of Mahindra Tractors influenced them to purchase the Mahindra tractors. 2. 29.16% of customers agreed that TV ads are the motivational factors to buy the Mahindra tractors. 3. 29.16% of customers came to know about the Mahindra tractors through TV ads. 4. Customers like the brand image of Mahindra tractors. 5. 50% of customers said that Mahindra design banners and advertising copies to promote their products 6. 25% of customers neutrally agreed that Mahindra tractors give proper demonstration of their product to the customers 7. 37.50% of customers said that Mahindra market their products through direct marketing, retailers and dealers. 8. 50% of customers said that Mahindra has a point of purchase displayed at their showroom

73

SUGGESTIONS
The study is related to the promotional strategies of Mahindra tractors. The following are the some of the suggestions found in the study. Customers of Mahindra consider the old customers while purchasing the Mahindra tractors. So, the company has to focus on the old customers and must provide the best services before sales and after service.

74

CONCLUSIONS
1. In the view point of customers, Mahindra brand advertisement has the greatest appeal. 2. Mahindra tractors have a genuine commitment in creating efficient and effective promotional tools 3. Customers felt that mouth publicity is the best promotional tool for Mahindra. 4. Most of the customers said that they will not stop purchasing if the promotion of Mahindra was stopped. 5. Customers opined that Mahindra tractors follow direct marketing, retailing and dealership as promotional strategies. 6. Mahindra tractors provide credit sales to customer

75

QUESTIONNAIRE ON PROMOTIONAL STRATEGIES OF MAHINDRA TRACTORS 1. Name: 4. Address: 5. Occupation: a) Farmer b) Other b) 1,50,000-2,50,000 d) 4,00,000 and above 2. Age: 3. Educational Status:

6. Annual Income: a) 50,000-1,50,000 c) 2,50,000-4,00,000 7. Who influenced you to buy this tractor? a) Friend c) Relatives e) Self b) Advertising d) Brand image f) Others

8. Which brand advertisement has the greatest appeal? a) Sonalika b) Eicher c) Mahindra d) John Deere

9. Which is the motivating factor to buy Mahindra tractors? a) Price d) Good Service b) Model e) Brand c) Quality

10. How did you come to know about Mahindra tractors? a) Pamphlets c) Wall Painting b) TV Ads d) Magazines e) News papers

11. Do you think that a Mahindra tractor has positive word of mouth publicity? a) Yes b) No

12. What is your reaction if the promotion was stopped? a) I will stop purchasing b) I will not stop purchasing c) Im not sure 13. What are the factors do you consider when you purchase the tractors? a) Parents suggestions c) T.V ads b) Friends suggestions d) Old customer

76

14. What attributes you like in the Mahindra tractors? a) New designs tractor b) Brand image c) Price of the

d) Promotional activities

15. Are you aware of any campaign of Mahindra tractors? a) Yes b) No

16. Do you believe that Mahindra tractors have a genuine commitment in creating efficient and effective promotional tools? a) Yes b) No c) Not clear

17. In your view, what is the promotional strategy followed by Mahindra tractors? a) Direct marketing c) Dealers b) Retailers d) All the above

18. Do Mahindra tractors participated in any tradeshows or exhibitions? a) Yes b) No c) Not clear

19. Do they design banners and advertising copies to promote their products? a) Yes b) No c) Not clear

20. Do Mahindra tractors provide credit sales to costumer? a) Yes b) No c) Not clear

21. Do Mahindra advertised about their product in any news paper, magazine or T.V.? a) Yes b) No c) Dont know

22. What do you think is the more beneficial promotional tool for Mahindra? a) Net promotion b) Print media c) TV d) Word of mouth publicity

77

23. Mahindra tractors gives proper demonstration of their product to the customers. How much do you agree with the statement? a) Strongly disagree d) Disagree b) Agree c) Neutral

e) Strongly agree

24. Do Mahindra tractors supply any advertising material which specify their name and products? a) Yes b) No c) Not clear

25. How Mahindra market their products? a) Direct marketing c) Dealers b) Retailers d) All the above

26. Do they have any point of purchase displayed at their showroom? a) Yes b) No c) Not clear

78

BIBLIOGRAPHY REFERENCE BOOKS: Concepts of Marketing: Kotler Philip, Marketing Management, 11th edition, Prentice hall of India Pvt. Ltd. Ramaswamy And Namakumari, Marketing Management, 3rd Edition, Macmillan India;Ltd Kotler Philip & Armstrong, Principles of Marketing, 9th Edition, Pearson Education Pvt.Ltd. G.C.Beri, Marketing Research 3rd edition, Me Milan India Ltd. C.R. Kothari- Research Methodology

Websites:

www.mahindra.com

79