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Auto - Machine, is one of the leading manufacturer of pipe and tube fittings components of brass and steel and automobile parts. Auto - Machine, having established in 1983, have developed to a fully fledged manufacturing unit with annual capacity of more than 10 million components. We are producing large varieties of compression fittings, flare type fittings and high pressure couplings for hydraulic, pneumatic and refrigeration application, in strict compliance of BS, IS, and SAE specifications in various ranges and also we are manufacturing machined components as per the customer's requirements. Infrastructure We have the backing of a state-of-the-art infrastructure aiding the operations. The unit is well-equipped with advanced R&D wing assisted by sophisticated machines and equipment. These machines have enabled us in bringing out cost-effective products like Stainless Steel Rods, Steel Sheets & Plates. We have developed to a full-fledged manufacturing unit for precision and machined components supplying to all leading OEM groups of customers. We do own the rare privilege of being the self certified supplier to all leading earth movers and automobile manufactures. Our field activities are not confined to the customers in India. We have been exporting Automobile products to many of the countries since 1999. Auto - Machine, have established Quality Assurance Laboratory, which is responsible for inspection of components.

The above provides a general description of the company and its division With the economy set to recover, a number of markets will benefit from renewed interest, driving downstream demand for pipe and parts. The industry will particularly depend on growth in the agricultural, construction and automotive markets to boost revenue, with the low price and lightweight quality of continuing to draw in customers This industry includes manufacturers who produce a range of plastic pipes, plastic fittings for plastic pipes, and plastic profile shapes such as rods, tubes, plates and car parts, but specifically excludes plastic hose or plastic plumbing fixtures. The pipe products are sold to customers with fluid handling requirements such as construction and irrigation supply vendors, water treatment plants, oil rigs and farmers. The essential steps of pipe and fitting production are to heat, melt, mix and convey the raw material into a particular shape and hold that shape during the cooling process. This is necessary to produce solid wall and profile wall pipe as well as compression and injection moulded fittings. Quality Management Quality has been the integral part of our business policy. Our products are available with an assurance of high quality and standards as they are tested on different parameters before supply. This is to ensure that only flawless products reach the hands of the clients. Network We are thriving on our well-established network that is spread not only in India but also in the markets of Gulf countries. Our well-coordinated network has enabled us in the timely and efficient delivery of the products. Subsequently, we are acknowledged as one of the trusted, Industrial Fasteners Manufacturers & Suppliers in India.


SAE Fittings Pipe TEE, Clevis, Cock Pipe plug Olive type Ferrule type Flair type Hose fittings Forged and Machined components Elbow tee connector Pipe line fittings This assembly plant not only boasts its own assembly facilities but also a R&D center, a

performance experimenting and testing center, and a driving testing ground. As such, the India plant represents a family-type combined automobile assembly facility, capable of all production processes, research and development, testing of products, marketing for sales and provision of after sale service in India.




A reusable fitting that is sealed by an O-ring located between the termination of a straight OD thread and the wrench flats used to tighten the fitting inside a component. Also called a straight thread O-ring fitting.


Pipe TEE is a T-shaped fitting to connect three lengths of pipe in the same plane with one length at right angles to the other two. Clevis is A U-shaped metal connector within which another part can be fastened by a bolt or pin passing through the ends of the connector.


Fittings are used in pipe and plumbing systems to connect straight pipe or tubing sections, to adapt to different sizes or shapes.

TEE CONECTOR A Tee connector is an electrical connector that connects three cables together. It is usually in the shape of a capital T. It is usually used for coax cables and the three connector points can be either female or male gender, and could be different or the same standard, such as F type BNC or N type. The various type of Tee connectors that Auto Machine Produce OLIVE TYPE Elbow Connector TEE FLAIR TYPE Elbow TEE Connectors HOSE FITTINGS Elbow connector

FORGED AND MACHINED COMPONENTS TO CUSTOMER DRAWING. Forging is a manufacturing process involving the shaping of metal using localized compressive forces. Forging is often classified according to the temperature at which it is performed: "cold", "warm", or "hot" forging. Forged parts can range in weight from less than a kilogram to 580 metric tons. Forged parts usually require further processing to achieve a finished part. A branch of heavy machine building that produces various metal products (ranging from machine parts to household items) by forging, stamping, and pressing. The processes are based on the deformability of materials, that is, on their ability to change their shape without destruction under the influence of external forces. Conditions favorable for plastic deformation are selected according to the fundamental principles of the theory of metalworking by pressure. The value of forging and stamping methods is that the shape of the stock changes as a result of

redistribution of metal rather than removal of excess metal, as in machining, which makes possible a sharp reduction in waste and a simultaneous increase in the strength of the material.

PIPE LINE FITTINGS: Pipe fitting is the occupation of installing or repairing piping or tubing systems that convey liquid, gas, and occasionally solid materials. This work involves selecting and preparing pipe or tubing, joining it together by various means, and the location and repair of leaks. Fitters work with a variety of pipe and tubing materials including several types of steel, copper, iron, aluminium, and plastic. Pipe fitting is not plumbing; the two are related but separate trades.


In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842. Development of roads made travelling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for travelling over longer distances.

The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses.

According the History of Automobile Industry US, dominated the automobile markets around the globe with no notable competitors. However, after the end of the Second World War in 1945, the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign automobile companies, especially those of Japan and Germany.

The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets, whereas the Automobile Industry in the developing nations, such as, India and Brazil, have been consistently

registering higher growth rates every passing year for their flourishing domestic automobile markets.

Those who are interested in gathering more information about the Automobile Industry may browse through the following links

World Automobile Industry Automobile Industry Trends India Automobile Market India Automobile Industry

The World Automobile Industry is turned to the developing markets. With the developed markets almost saturated, the World Automobile Industry is now focused on the developing markets of South America and Asia, and Eastern Europe with special emphasis on BRIC (Brazil, Russia, India, and China). As per the reports of the International Organization of Motor Vehicle Manufacturers or OICA(the association of the companies involved in World Automobile Industry), for the fiscal end in 2006, the automobile manufacturers in the U.S. have been overtaken by those in Japan, in terms of the total volume of automobile units manufactured worldwide. However, the struggling General Motors of the U.S. still remain the worldwide leaders of the World Automobile Industry, ahead of the rapidly growing Toyota Motor Corporation of Japan, by a substantial margin. Measures to be adopted by global leaders of the World Automobile Industry. Several significant economic measures are being considered by the major players of the World Automobile Industry in order to make a smooth entry into the markets of the developing countries, and to make a name for them. The effective measures include:

Reducing the selling prices of the automobiles manufactured in their factories Improving the levels of after-sales services to keep customers satisfied

Opening manufacturing factories in the developing nations, to reduce effective costs of production as well as saving shipping charges, and enhancing prompt delivery of automobile units.

Automobile Industry Trends In keeping with the Automobile Industry Trends, the leading automobile manufacturers are turning to the Asian markets that appear set to grow immensely over the next decade. The automobile markets in the U.S., Europe and the Japan have almost matured as a result of saturation and appear set to decline through the next decade. In contrast, the automobile markets spread over the entire Asian continent (with the exception of Japan), are constantly increasing in size and will be the destination for most of the globally leading automobile manufacturers. The Automobile Industry Trends reveal that the emerging markets of the developing nations of Asia especially China, and India are backed by their huge population growth rate, to add to the growing national economy of these two nations.

The rapid growth of the national economy of the BRIC countries (including Brazil, Russia, India, and China) has enabled a growing section of the population of these countries to purchase automobiles. Global surveys conducted recently reveal that within the next ten years, these emerging automobile markets will account for nearly a whopping 90 percent of the global automobile sales growth. As a result of this, leading Automobile manufacturers of the world are setting up factories in the emerging markets, in order to serve the potential consumers better as well as reduce manufacturing and shipping costs. In addition, these arrangements are enabling the leading global automobile manufacturers to compete with the local automobile manufacturers that were flourishing in the absence of quality competition.

The prosperity of the national economy is reflected in the rising per capita income of the developing nations. Therefore, increasing Gross Domestic Product and per capita income have raised the purchasing ability of the population that constitutes these emerging markets

As a growing percentage of the population in the developed nations age rapidly, in comparison to the rest of the world, these aging numbers necessitate automobiles to fit the physiological change of the world population. The Emerging India Automobile Market The India Automobile Market is a promising industrial sector that is growing immensely every passing year. The passenger cars are referred to, through the use of the word "automobile." The whooping growth experienced by the Indian Automobile Market in the last financial year itself that is the financial year end in February, 2007 was very close to an 18 percent over the previous fiscal. This statistical fact is a glittering example of the potential of the growing Automobile Industry in India. As per the survey conducted by the Society of Indian Automobile Manufacturers, the total number of automobiles manufactured by the Automobile Industry in India, throughout the financial year 2006-07, was very close to the 15.5 lakh (1.5 million) margin. The huge of number of automobiles manufactured by the Automobile Industry in India was an enormous growth upon the number of automobiles manufactured during the previous fiscal that ended in 2006. The total number of cars that were exported from India were very close to the 2.0 lakh (2.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in India. The export of cars manufactured in India comprised nearly 13 percent of the total number of cars manufactured domestically by the Automobile Industry in India.

The India Automobile Market looks set to prosper, largely due to the growing market for automobiles that is developing in India. In the financial year that ended in February, 2004, the Indian automobile markets were the fastest growing in the world, with the registered growth rate touching nearly 20 percent. The Automobile Industry in India mainly comprises of the small car section, which enjoys nearly a 2/3rd market share of the entire market for automobiles in India. In this respect, the Indian markets are the largest in the world for small cars, behind Japan.

The Indian passenger car market which ranks amongst the largest in the world, is poised to become even larger and enter the top five passenger car markets in the world in the next decade.

India Automobile Industry Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry.

The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent the automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997.

With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

Automobile Dealers Network in India In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufacturers are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in turn pass it on to the customers in the form of reduced interest rates.

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors

Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology

and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.

The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- ahalf times the export figure for 2001-02.

Automobile Export Numbers

Category Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers

1998-99 25468 2654 10108 100002 21138

2004-05 (Apr-Dec) 121478 3892 19931 256765 51535

Percentage Growth



THE KEY FACTORS BEHIND THIS UPSWING Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry.

As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies.

The auto component sector has also posted significant growth of 20 per cent in 2003-04, to achieve a sales turnover of Rs.30,640 crore (US$ 6.7 billion). Further, there is a potential for higher growth due to outsourcing activities by global automobiles giants. Today, this sector has emerged as another sunrise sector.

EVEN GROWTH Opposing the belief that the growth in mobile industry has catered only to the top income-stratum of society, Growth of exports of 32.8 % in the first three quarters of 2004-05, the fastest growth in volumes has come from commercial vehicles as against passenger cars.

Between 1998-99 and 2003-04, output of commercial vehicles has grown 2.8 times compared to the 2.2 times increase in passenger cars. Furthermore, two-wheeler output continues to dominate the volume statistics of the sector. In 2003-04, for every passenger car turned out by the sector, there were 7 two-wheelers produced. In the two wheeler segment, there is a greater preference for motorcycles followed by scooters, with both production and domestic sales of motorcycles increasing at faster rates than for scooters in the current and previous years. However, mopeds

have registered low or negative growth. Export growth rates have been high both for motorcycles and scooters.

Automotive spare parts and components is a lesser known industry yet a big one. In past few years the industry has grown enormously, even more than the automotive industry itself not only in the Indian but global scenario.

This vast industry includes automotive components, accessories, gadgets, spare parts and tools; the consumers being the OEM segment and the replacement and aftermarket sector. Automotive spare parts replacement and aftermarket have in themselves become a major industry. In mid 1990s the quality of Indian products increased a lot and the prices were considerably lowered. This posed an interesting situation where the Indian replacement and aftermarket industry had geared up to meet the international standards and awaited an ideal opportunity for global exposure. Certain SMEs through their focused operations are now serving the global automotive giants directly or through suppliers. Online catalogs and websites have added to the online presence of our clients.

The results are quite apparent, Indian automotive parts industry makes original components of major automotive giants like General Motors and Mercedes amongst others. They have, through consolidated efforts been positioned as global players of the sector.


PRIMARY OBJECTIVE To study on effectiveness of promotional strategy.

SECONDARY OBJECTIVES 1. To find out sales increase in competitive market. 2. To find tools and techniques of sales promotion that is used in the Industry. 3. To analyze the purchasing behavior of the customer. 4. To analyze the product competitor in the market. 5. To analyze the current Market and establishing a New Market 6. To find and Strengthen Brand Loyalty 7. To make a Introduction for a New Product Line

Promotion is more important in changing the timing rather than the level of purchasing because customers tend to buy earlier (Doyle and Saunders, 1985). Promotion is the marketing effort designed to communicate to an organizations target market. Promotion is, undoubtedly, the most visible element of the marketing mix ( Govoni, Eng and Galper, 1986; Guiltinan and Paul,1994; Lamb, Hair and McDaniel,1992; Pride and Ferrel,1989). There is a growing emphasis on designing the best marketing promotional strategies for targeting and maintaining consumers. A good promotional strategy encompasses advertising, sales promotion, public relations, and personal selling in order to communicate with their present and potential consumers (Kotler,1994). Promotions is responsible for moving the demand curve upward and to the right by utilizing some or all of the elements of the promotion mix- advertising, personal selling, and publicity along with sales promotion( Ward and Hill, 1991). Promotion has been defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors or the ultimate consumer with the primary objective of creating an immediate sale (Schultz and Robinson, 1982). The termsales promotion has been used to represent at least three different concepts: (1) the entire marketing mix, (2) marketing communications (Anderson, 1982),(3) a catch-all for all communication instruments that do not fit in the advertising, personal selling or public relation subcategories ( Van Waterschoot and Van den Bulte, 1992).

Pride and Ferrel(1989) state that sales promotion methods fall into one of two groups. Consumer sales promotion methods are directed toward consumers and include coupons, contests, bonuses, vacations, gifts, tie-ins and free samples ( Lamb et al, 1992). Trade sales promotion methods focus wholesalers, retailers and salespersons. Examples include sales contests, free merchandise, demonstrations, point-of purchase, and display (Anderson, 1986; Pride and Ferrel, 1989). Blattberg and Neslin (1990) summarize the various definitions offered by several authors (Kotler, 1988; Webster, 1981; Davis,1981), and develop the following definition of sales promotion: sales promotion is an action-focused2 marketing event whose purpose is to have a direct impact on the behaviour of the firms

consumers. Different authors have identified different categories of consumer-oriented sales promotion. According to the International Chamber of Commerces (ICC) International Code of Sales Promotion Practices, consumer-oriented sales promotion encompasses the following techniques: 1. Sampling: by definition, sampling includes any method used to deliver an actual or trial size product to consumers ( Shimp, 1993, p.491). Sampling is generally considered the most effective way of generating trial, though it is the most expensive. ( Belch and Belch,1995). 2. Coupon: A coupon is a promotional device that provides cent-offs savings to consumers upon redeeming the coupon ( Shimp,1993,p.496). Coupons can be disseminated to consumers through newspapers and magazines, direct mail and packages.

3. Premiums: A premium is an offer of merchandise or service either free or at a low price that is used as an extra incentive for buyers ( Belch et al, 1995, p.494). Several forms of premium offers, serving different purposes exist. The three types of offers are free-in-the-mail premiums, in-and on pack premiums, and self-liquidating premiums. 4. Price-off: It is a reduction in a brands regular price. According to Blair and London( 1981), the major reason for marketers to use the price-off reductions is that this type of deal usually presents a readily apparent value to shoppers, especially when they have a reference price point for the brand, therefore they can recognize the value of the discount.

5. Bonus Packs: These are extra quantities of a product that a company offers to consumers at the regular price by providing larger containers or extra units. Bonus packs result in a lower cost per unit for consumers and provide extra value, as well as more product for the amount of money paid.

6. Refunds and Rebates: Refunds and rebates refer to the practice in which manufacturers give cash discounts or reimbursements to consumers who submit proofs of purchase ( Shimp, 1995,p.520). Typically, a refund refers to cash reimbursement for packaged goods, whereas a rebate more often refers to reimbursements for durable goods. These two sales promotion techniques provide users a delayed rather than an immediate value since the consumer has to wait to receive the reimbursement. ( Tat, Cunningham and Babakus, 1988).

7. Contests and Sweepstakes: They offer consumers the chance to win cash, merchandise or travel prizes. However, there are some differences between the two practices. A contest is a promotion where consumers compete for prizes or money on the basis of skills or ability. In a sweepstakes, winners are determined purely by chance.

8. Event Sponsorship: in general, a company develops sponsorship relations with a particular event. In general, sports receive two-thirds of the event sponsorship budget (Shimp et al, 1993, p.494).


A variety of methods of study have been adopted by the researcher to fulfill the objectives of the study. In order to have a better grasp of the study, the researcher chose to become a keen observer, studying the various aspects of the organization.

With a view to understand the crunch of the matter and to find out the ground realities, the researcher formed a schedule specifically for the set of respondents. The researcher met the respondents personally, interviewed them and made them to fill the questionnaire.

The researcher has done the research in the following manner; a) Type of the research undertaken is descriptive research design. b) Technique used is random sampling. c) Sample size taken is 30. d) Sources of data used include both primary as well as secondary data. e) Tool used for the research is questionnaire. f) Plan of analysis are tables and graphs.

REASEARCH DESIGN: A research design is considered as the framework or plan for a study that guides as well as helps the data collection and analysis of data. The research design may be exploratory, descriptive and experimental for the present study. The descriptive research design is adopted for this project.


In this study, the foremost data collection instrument used is the questionnaire method. The questionnaire has been designed with both open ended and closed ended questions. Apart from this, the research instrument consists of primary and secondary data collected for the study.


Primary Data

Secondary Data

Questionnaire Observation Interviews Visits to other Companies Information Through Departmental heads

Newsletter Journals Magazines Newspapers Books Websites

Primary Data: Here first hand information is obtained by distributing printed questionnaire to the marketing executives of the company. Data was also obtained from the observation and interview technique adopted by the researcher. Moreover, information was disseminated by the departmental heads.

Secondary Data: Here the information is obtained from the brochure of Auto-machine, books, websites, newsletter, journals, magazines, newspapers, etc.


1. Name:

2. Designation:

3. Age:

4. Sex o Male o Female

5. What do you feel about the pricing of products? o High o Reasonable o Competitive o Low

6. What do you think is your competitors strength? o Quality o Brand image o Pricing o Promotional activities

7. How is the quality of the products of industry with respect to other competitors? o Good o Very good o Fair

o Poor

8. What kind of products sold more in a month? o CMM, profile projector o Lathe machine

9. What among the following is the merit of the product of industry that differentiates it from others? o Reasonable price o Quality o Customized product o Finishing

10. Rate the following factors which play a major role in demand generation? Factors Ratings

5 Price of the product Awareness about the product

Delivery of the product ordered

Presentation about the product

Design of the product

11. What are all the promotional activities undertaken for the products of the industry? o Paper insertion

o Telemarketing o Display stalls o Participating in exhibition o Direct mail o Presentations o Lab

12. Will you provide discounts on repeat purchase? o Yes o No

13. What percentage of discounts given on repeat purchase? o 2-5% o 6-10% o 11-15% o 16-20% o None

14. Which of the following ways do you adopt for marketing of products? o Direct marketing o Retailers o Dealers o All the above

15. Who is your target consumer? o Upper class o Middle class o Lower class

16. What are the kinds of incentives received by the employee?

o Commission o Schemes o Free gifts o Recognition o Nothing at present

17. What type of promotion strategies do you adopt? o Push strategy o Pull strategy o Both

18. What is the important point that you keep in mind while developing a promotion strategy? o Consumer attitudes and buying patterns o Your brand strategy o Your competitive strategy o Your advertising strategy o Other external factors that can influence products availability and pricing.

19. Are you satisfied with the nature of your job? o Yes o No

20. What is the most important benefit of promotion? o Boost sales o Retain old customers o To draw new customers o To challenge the competition

21. Which of the following tools do you use for sales promotion? o Free samples

o Premium or bonus offer o Exchange schemes o Price-off offer o Coupons o Fairs & exhibitions

22. The importance of sales promotion is appreciated by consumers because they cannot change over to new brand of goods. o Strongly agree o Agree o Partially disagree o Disagree

23. Sales promotion plans are developed with three groups in mind: the consumer, the distributor, and o The advertising agency o The sales force o The manufacturer o Competitors o The media

24. The most common objective of consumer promotion activity is to have the consumer o Purchase a second time o Make a trial purchase o Spread word-of-mouth o Enter a contest o Purchase more frequently 25. Consumer promotions seeking to take the customer out of the market for a time encourage o Membership

o Contest entries o Trial purchase o Brand loyalty o Multiple purchases