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PROJECT TITLE
A MARKET STUDY ON SALES PROMOTION
AT AKSHAY SUZUKI AUTOMOBILES PVT LTD
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CONTENTS
Page no:
CHAPTER-I
INTRODUCTION 03
Need for the study
Objectives of the study
Research methodology
Scope of the study
Limitations of the study
CHAPTER-II 06
COMPANY PROFILE
CHAPTER-III 15
LITERATURE REVIEW
QUESTIONNAIRE 37
CHAPTER-IV 38
DATA ANALYSIS
CHAPTER-V 56
FINDINGS , CONCLUSIONS & SUGGETIONS
BIBLIOGRAPHY
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CHAPTER-I
INTRODUCTION
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INTRODUCTION
NEED FOR THE STUDY
This particular topic is chosen because every organization required sales promotion
and distribution to promote their product and services. Sales promotions and
distribution are playing a vital role in today's market. So it is important to know how
far these promotional activities are creating brand awareness in the minds of the
customer and influencing them to go for the products and services and also the need to
increase the quality, creativity and utilization of technology in the distribution and
sales promotions.
OBJECTIVES OF THE STUDY
To find out the opinion of customer about the perfect promotion technique.
To find out the opinion of the customer on the subject, sales promotion.
To find out the ways to promote the product so that it reaches the high
standards.
To know how well the product SUZUKI is doing well in the market.
To know how well the product SUZUKI is withstanding on their words, which
makes it to increase the sales.
To determine the share of the SUZUKI in two-wheeler by directly questioning
the customer.
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RESEARCH METHODOLOGY
1. DEFINING THE PROBLEM
This involves developing and understanding of the problem. The research need not be
undertaken only for a problem but also for opportunities and this study an attempt has
been made to understand Sales Promotion towards SUZUKI Motor Company.
2. DATA COLLECTION & PROCESSING
The data has to be collected by the methods predetermined; the primary data has been
collected through well designed questionnaire and personal interviews. Secondary
data is collected through various books i.e Marketing.
3. SOURCES OF DATA
The data has been collected from two sources i.e primary & secondary data.
a) Primary Source
This is through a well designed questionnaire.
b) Secondary Source
The secondary source was collected from the profile of the organization, catalogues
and various books.
SCOPE OF THE STUDY
The scope of the study is confined to all the customers of SUZUKI Company.
LIMITATIONS OF THE STUDY
The limitations of the study are restricted within the south and western Mumbai.
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CHAPTER-II
COMPANYPROFILE
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COMPANY PROFILE
Suzuki Motorcycle India Pvt., Ltd. engages in manufacturing two wheelers. The
companys products include motorcycles and scooters. It offers its products through a
network of dealers. The company was incorporated in 1997 and is based in Gurgaon,
India. Suzuki Motorcycle India Pvt., Ltd. operates as the subsidiary of Suzuki Motor
Corp.Suzuki Motor Corporation (SMC), a global giant of motorcycle manufacturing is
headquartered in Japan. It holds major stake in its Indian subsidiary, Suzuki
Motorcycle India Private Limited (SMIL). SMIL was set up after Suzuki's re-entry
into the Indian two-wheeler market after it severed ties with partner TVS in 2000-01.
Suzuki was then the technology provider in the erstwhile joint venture company TVS
Suzuki. Suzuki Motorcycle India Pvt Ltd (SMIPL) is the latest entry into the already
crowded Indian two-wheeler segment with players like Hero Honda, Bajaj Auto,
Honda, and TVS. SMIPL have started their Indian operations with a 125-cc mass-
market motorcycle. It has made an initial investment of Rs. 200 crores to start their
Indian operations. Company sources have revealed that Suzuki would follow up this
125cc bike with a high performance 150-cc sibling sometime next year. And for the
budget segment, another 100cc bike is expected in the first quarter of 2006. Mass
market is the initial aim with plans to enter all the segments rapidly. They have their
facilities located in Gurgaon. Suzuki had launched bike by diwali, which is the
auspicious time for buying a new vehicle in Indian families. Their setup in Gurgaon
has the capabilities of manufacturing one lakh motorcycles and they are ready to step
that up massively if the situation arises. They already have setup 40 dealerships
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around the country and are going to establish 4,000-5,000 sq.ft showroom and service
stations to provide services to the customers.
The parent company happens to be one of the largest manufacturers of two wheelers
in the world with more than 20 lakh bikes sold per annum. They are popular for their
range of high performance road machines, lightweight super bikes, dirt bikes, street
bikes, and motocross and fun bikes globally.
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MISSION OF SUZUKI
The core philosophy of SUZUKI is to provide VALUE-PACKED PRODUCTS.
Since the founding of SUZUKI Motor Corporation, the Organizations Endeavour has
always been to provide VALUE-PACKED PRODUCTS as one of the
manufacturing philosophies.
SUZUKI believes that VALUE-PACKED PRODUCTS come from the effort to
carry out Product development from customers point of view. This policy has been in
effect since Companys inception and has helped the Organization to meet customers
needs. As a result, Suzukis Products have become well received throughout the
World.
SUZUKI is fully committed to create Products that meet customers demand by
utilizing its dynamic, long-nurtured technological advantage coupled with its fresh
and active human resources.
Develop products of superior value by focusing on the customers
Establish a refreshing and innovative company through teamwork
Strive for individual excellence through continuous improvement
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AKSHAY SUZUKI
The Akshay Suzuki Show room has i t s separate serv ice center.Here
Akshay Suzuki also have a latest service center with all semi-automatic
instruments. I t maintains a unique and regular checking of each and
every bike to increase a satisfaction level of the customers.
Akshay Suzuki str ict ly watch and try to lesser the t ime of a customer
while they give bike in to service. Mostly Customer when come to give
his bikes in service, the service procedure of the showroom is very less
and smallest so that customer will free within 5 Minutes.
AKSHAY SUZUKI SELLING SCHEME & RESULT:
Sel ling sch eme i s a Dealers Scheme t ha t i s u se fu l to a tt ract the
customer towards the showroom to purchase new bike. This all selling
sch eme p ro vided to the cus to mer i s w ithin Rs.2000 . Such Sell ing
Scheme are:
RTO Free
Insurance Free
Petrol Free Up to some K.M or some Rupees.
Reference Sales
DSS (Door Sales Service)
Exchange (It is a Major tool of Scheme/Conversi on)
SELLING OF SHOW ROOM:
Every showrooms goal is to increase the sales. The Akshay Suzuki
has a great sales of b ike through providing different scheme, faci l i ty
and services to the customer. The Following figures are approximate:
Daily 15 vehicles
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Monthly 450 Vehicles
Yearly 13500 Vehicles.
The range of prices for SUZUKI two wheelers bikes starts from 47000 to
67000/-.
Akshay Suzuki offers Exchange Mela of bikes for two wheelers to satisfy
the customer convenience of various two-wheelers. It also offers test ride.
The registration of the two wheelers is done by the agents who are in touch
with Akshay Suzuki.
It also provides Two-Wheeler loans from respective banks like HDFC
for the customer convenience with lowest rate of interest rate of
payment.
The rate of interest charged on customer will depend on the amount he paid
and loan period.
(a) For employee 12% per annum.
(b) For business person 12% or 12.5% per annum.
Akshay Suzukigenerate various sales reports
1. Weekly sales reports
2. Monthly sales reports [ 1 -31st ]
3. Mid week sales report [from Friday to Tuesday]
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Sales are likely to be increased after the financial year i.e. after the budget of
every year is announced. December is the off season for sales and percentage
of sales is more for motor bikes.
Details about the Two-Wheelers
All SUZUKI Two-Wheeler motors are manufactured with pure Indian
Technology with not foreign collaboration. The main manufacturing unit of
SUZUKI Motors is located in Gurgaon (Haryana).
The maintenance cost of SUZUKI two wheeler is zero and the cost of
spare parts is very less when compare with other two wheeler spare parts.
The main competitors of SUZUKI two wheelers are the two wheelers from the
Hero Honda. The minimum warranty of engine is two years.
SUZUKI two wheeler are manufactured with the CC & BHP.
BHP - Break Horse Power
CC - Centrifugal Force of Engine
RMP - Revolution per Minute
Details of Work Shop (Service Department)
The workshop or service department has the following
Customer Lounge:
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Customer lounge is a place where to complete the customer are asked to wait for
this service to entertain the customer the administration had provided Television
and newspapers.
Supervisor cabin:
There is one supervisor who is the head of the service department .He looks after
the whole service department and is responsible for preparing the job card.
Engine Room:
There is a separate cabin called engine room for the repair room for the repair
works of the engine.
Water Room:
There is a separate block to wash the vehicles .A total of 30-40 vehicles are
serviced here.
Mechanics:
There are total of 8 automatic benches for service with 4 senior mechanics
who are well trained.
Job Card:
Job Card contains the details of the vehicle like, engine number, model, customer,
problem, amount of service, amount for spare parts, date and time of delivery.
Spare Parts:
A well versed spare parts block contains different racks for different models of
Vehicles.
Go down:
There is also one huge Go down which has the capacity of putting a maximum of 150
vehicles.
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CHAPTER-III
LITERATURE REVIEW
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LITERATURE REVIEW
Sales Promotions
Sales Promotions consist of many devices aimed at generating active Customer
response within a short period of time. Interestingly, most of the effort has been
receiving an increasingly large share of the advertising/Promotion budget, particularly
for Promotion oriented toward the trade.
Coupons and Promotions play a large role on the web as well. Over 50
percent of both first time and repeat buyers were influenced by either coupons
or free shipping. Promotion competes with advertising for budget it also
provides a different approach to influencing sales. In the case of advertising, the
basic approach is to create or increase a desire on the part of the Customer for
the product itself. In contrast, most Promotions implicitly assume the level of
desire for the product is fixed and try to "close the deal " by providing incentives to
purchase.
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This is, of course, an oversimplification. A" get them while supplies last" ad focuses
on immediate response, and Promotions, Involving free samples aim at generating
repeat business. Nonetheless, Promotions, many of which involve temporary price
reductions, are seen as a form of marketing effort that is more aggressive and oriented
toward immediate results. In reality, one if the few ways product managers can obtain
a short run change in sales or market share is to use sales Promotion activities.
In general Promotion falls in to three main categories:
1. Final Customer Promotion
2. Manufacturer Promotion to the channels or Trade Promotion.
3. Channel originated Promotion, or Retailer Promotion.
Final Customer Promotion comes directly to the Customer from the manufacturer.
Trade Promotion, in contrast, is directed at intermediate channels of distribution in an
attempt both to get them to buy more of a product and to commit their own effort to
"pushing" the product through the nest channel and ultimately to the consumer.
Channel-originated Promotions are run by the channel itself to either the next channel
in the distribution chain or to final Customers.
For consumer packaged goods sold through supermarkets, retailer Promotions are an
especially visible form of Promotions. Displays, feature advertising, and price deals
(price cuts, free merchandise, and retailer-issued coupons) all affect sales and profits
and either augment or detract from manufacturers direct Customer Promotions. In
general, the purpose of channel Promotions is to increase sales pf all products to the
Customer.
Promotion objectives and programs may be gathering offensive, or defensive.
Offensive Promotion attempt to gain an advantage through exclusively: being the only
company to offer a particular Promotion or level of Promotion support. In most
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markets, however, competitors quickly match Promotions. On top of that, in some
areas, notably consumer packaged goods; the channels have become sufficiently
powerful to both demand and schedule Promotions. The result is that companies,
including those with household brand names and dominant market shares, are
promoting due more to a perceived necessity to match competition and satisfy the
channels than to a conviction that Promotions benefit the manufacturer.
Many types of consumer products, service and industrial products use sales promotion
devices extensively. Short-term price discounts to consumers are very common in
industrial markets. In addition, farm equipment and office
Products manufacturers, for example, frequently target channel members for
promotions which may or may not passed on to the customers.
Simplified Channel and Promotion Structure
PROMOTIOM OBJECTIVES
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Final Customer Promotions
Final Customer Promotion, at least for existing or mature products, typically
takes a short-run view. Even when the focus as long-run, such as to generate trial,
the operational objective of most Promotion is to generate immediate response
in the form of sales. The possible advertising objective range from generating
awareness to increasing product understanding to improving attitude towards
purchase. In principle, Promotion can be directed toward any of those goals.
Customer Promotion Objectives
Objective Programming Typical
I .Long-run(relationship building)
A. Awareness enhancement
B. Image enhancement
Sweepstakes, contest, tie-ins
SponsorshipsII. Short-run (transactional)
A. Current Customers
1. Buy More
2. Be more loyal
3. Buy now
B. Occasional Customers(deal
prone, brand switchers)
Capture next purchase
C. Non Customers
Volume discounts/special value
packages
Coupons, premiums. Frequent buyer
Programs Rebates, coupons
Coupons, display, rebates
Trial sizes sampling
If awareness is the problem, a company can run a Promotion such as a game or
sweepstakes designed to increase awareness of a product rather than to increase
immediate sales. Similarly, a company can run a tie-in Promotion that may, in
addition to raising current sales, have a residual positive impact on brand image.
Such relationship-building motives, however, account for only a small percentage
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of the Promotion. Once awareness of the product is met then to improve the sales,
is it recommended that to go for the promotion objectives that are listed above.
By far the most common objective of a consumer Promotion is a short-run goal to
generate more transactions in a short period of time. The objective are implemented in
two ways, first we need to specify from what level sales should increase. The easiest
benchmark is last year or last period; the more difficult measure, but one from which
the true success of the program should be gauged, is what sales would be absent the
Promotion Second, we must select the target Customer and define desired behavior.
Basically, you ca focus on getting current Customers to buy more, capturing
occasional but not loyal Customers, or generating sales from current Non Customers.
Many Promotions focus on current Customers, attempting to get them to buy more
through a -volume discount, to be more loyal, or to accelerate their purchases and buy
sooner. Attracting occasional Customers, typically through temporary price cuts such
as coupons and rebates, is effective but also expensive. This is not only produces
lower margins on the sales to occasional Customers but may also lower margins on
sales that would have been made in the absence of the Promotion to either occasional
or regular Customers. Hence a major concern ids how to target Promotions o
competitor's Customer alone. Promotions to non Customers are generally used when a
product is new to generate trial. In a sense, targeting non Customers implies a long-
run relationship-building objective. In addition to their sales-generating role,
selectively distributed Promotions provide a legal means of price discrimination.
Special coupons may act as price discriminators as much as sales promoters.
Similarly, different sale price can be offered to target groups in catalogs based on their
past purchasing behavior.
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TRADE PROMOTIONS
The objectives of trade Promotions basically fall into three main categories.
Objective Typical Programs
Transactional: increase stocking levels Volume allowances Financing terms
Discount/price cuts Slotting allowances
Transactional: increase sales efforts Advertising Display allowances Premiums
allowances Contests
Relationship building Free goods
Relationship building
The first category focuses on getting the trade to buy or stock the product in greater
quantities by offering various financial incentives. The second category tries to
increase the level of trade support given to the product by means other than
increasing their inventories. A variety of allowances and direct incentives relate to this
task. The final set of objectives involves relationship building, a longer-term
objective. One example of relationship-building is t give extra product to a channel
with no explicit strings attached.
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An important type of trade Promotion involves participating in trade shows. One
major purpose of trade shows is to entice current and potential channel
members to carry a product. Trade shows are a great business in their own right.
Participants have multiple objectives, including image enhancement, new-product
introduction, and competitor monitoring.
Promotion Budgeting Total Advertising and Promotion Budget
Seven factors have been found to effect the total budget for advertising and sales
Promotion for manufactured products .Companies spend more on Promotion and
advertising relative to sales when
1. The product is relatively standardized.
2. There are many end users.
3. The typical purchase amount is small
4. Sales are made through channel intermediate than directly to end
users.
5. The product is premium priced.
6. The product has a high contribution margin.
7. The product or service has a small market share.
ADVERTISING AND PROMOTION
Several factors affect this allocation decision. First, the total amount of resources
available has a major impact. If the marketing budget is small, extensive media
advertising is usually not worthwhile unless the target market is local and can be
reached by media such as radio and newspapers, because advertising usually needs a
minimum or threshold amount to have any impact. Beneath the threshold value, the
money is virtually wasted. In such cases, spending the budget on sales Promotion
results in a greater market impact than advertising. Second, Customer factors affect
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allocation decisions. One relevant aspect of Customer behavior is the degree of brand
loyalty. Promotion money spent on a product or service exhibiting high levels of
loyally rewards primarily existing Customers. Although this may be what the product
manager wants, it is usually not the best way to spend money. If Customer's are not
very loyal, the product manager should try to understand if their behavior is endemic
to the category; if so, there may be an opportunity to attract brand switchers with
Promotions. It is also possible, however that the product manager has created non-
loyal Customers through frequent, price-based Promotions, and thus all that happens
is a temporary swapping of Customers.
A second relevant aspect of consumer behavior is the type of decision required of
them. If the product is complex and therefore requires a fair amount of information
processing, more should be spent on advertising because it is better communications
device. Alternatively, most sales promotion amount is spent on product categories in
which decision making is routine and involves little processing of information about
the product.
A third factor affecting allocation decisions is whether advertising and promotion
amount high the unique aspects of the product, consumer franchise building (CFB)
aspects. CFB activities are those that build brand equity, including advertising,
sampling, coupon, and product demonstrations. Non-CFB activities focus on price
alone and include trade promotions, short-term price deals, and refunds.
TYPES OF FINAL CUSTOMER PROMOTIONS
Deciding on which Promotion element to employ in many ways parallels the media
selection process in advertising
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CONSUMER PROMOTIONS
I. Product based
A. Additional volume/bonus pack
B. Samples
1. Central location
2. Direct(e.g., mail)
3. Attachment (in-/-on-pack)
4. Media placed (clip-and-send coupons)
II. Price based
A. Sale price
B. Coupons
1. Central location
2. Direct (mail)
3. Attachment (in-/-on-pack)
4. In media (e.g., websites)
C. Refind/rebates
D. Financing
E. Frequent
III. Premiums
IV. Place-based Promotions(physical '1;splays; Internet site based)
V. Games (sweepstakes, contests)
PRODUCT-BASED PROMOTIONS
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One obvious category of Promotions is to give away the product itself. Extra volume
packages bare common in consumer products. Even more dramatic are completely
free products. Coupons for free goods show up in the mail, on or in packages of the
good, or in media vehicles. Computer hardware and software companies often give
free copies of their products to select Customers as "beta" test sites to help get any
bugs out and stimulate early word of mouth. Sampling has the obvious benefit of
stimulating product trial because it gives the shortcomings. First, it is very expensive.
Second, it may not target the right potential Customers; people who distribute free
samples in supermarkets or on street corners are not very discriminating about to
whom they give the product.
PRICED-BASED PROMOTIONS
Another obvious type of Promotion involves price. The use of sale price is understated
if we describe them as being "widespread". Unfortunately, most short-term price
reductions are not narrowly targeted because all buyers, including extremely brand-
loyal ones, have access to in-store price reductions.
More targeted price reductions that require at least some effort on the part of the
consumer involve coupons. Coupons are one of the very few ways to legally
implement price discrimination, that is, charge different prices to segments with
different sensitivities to price by delivering targeted coupons. The use of attachment
coupons allows a more focused price cut, though outright theft and trading of coupons
are common As just noted one advantage of coupons is that they can be delivered by
mail, at the cash register, or even through the Internet to carefully targeted audiences.
In addition, because they normally have to be cut out and physically carried to the
point of transactions, coupons require more commitment to purchase the product, and
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thus may engender more repeat purchases. They are also flexible because they can be
designated for larger package sizes, a now flavor extension, and the like.
Other, price-based consumer Promotion is also options. Refunds and rebates are
common and effective, though the long-run effects may be negative. Frequent user
programs such as those offered by supermarkets, sporting goods stores etc, are useful
for encouraging brand loyalty and allow consumers to buy products at a discount after
they have accumulated a sufficient number of points.
OTHER CUSTOMER PROMOTIONS
In addition to product - and price-based Promotions, other elements of the marketing
mix can be used to meet company objectives. Point-of-purchase displays are common;
notice the checkout and end-of-aisle displays at any supermarket. One popular form of
place-based Promotion is the exposition at which manufacturers congregate to display
and sell their wares. Another inducement to purchase is free service. In addition,
various premiums have proven effective.
TYPES OF TRADE PROMOTIONS:
Trade Promotions are directed not to the final Customer but to the channels through
which the goods are sold. Like consumer Promotions, they can be broken into five
categories
Trade Promotions
I. Product based
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A. Free goods
B. Consignment/returns policy
II. Price based
A. Buying allowances
B. Financial terms
III Place based
A. Slotting allowances
B. Display allowances
C. Warehousing/delivery assistance
IV Advertising and promotion based
A. Co-op advertising
B. Selling aids
C. Co-op selling
V Sales based
A. Bonuses and incentives
B. Contents and prizes
Product-based Promotions include free goods and generous returns policies.
Returns policies allow the channel to return unsold merchandise for a full or partial
refund, reducing the risk of carrying the product. Price deals include various volume
discounts and allowances, as well as financing terms such as long period of time
before payment is due or below-market interest rates.
Place-based allowances are especially for consumer packaged goods. Slotting
allowances, which are basically payments for placing a product on the shelf, have
become increasingly important as power has shifted from manufacturers to retailers.
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These fees charged to manufactures have had a negative effect on the number of
competitors in many product categories and have been particularly hard on small
companies, for which the fees can become prohibitive. Display allowances
compensate retailers for prominent display of goods.
Other Promotion involve reducing inventory and transportation costs by either
warehousing the goods for the channel or paying all or part of delivery charges.
Providing selling assistance is also common. In addition to selling aids companies
often provide cooperative advertising, sharing the channel's advertising expense.
EVALUATING CUSTOMER PROMOTIONS
The easiest approach to evaluating Customer Promotion is to simply look at
incremental results during the period of Promotion. This method provides a useful
starting point, but may lead to an overestimate of the benefit of Promotion because it
ignores both where the sales come from and the long-term consequences of
Promotion. As with evaluating advertising effects, a standard approach to measuring
the impact of sales Promotion is tracking.
EVALUATING SALES PROMOTION: TRACKING STUDIES
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As shown in above picture of simple tracking approach with point A on horizontal
axis representing the time when the Promotion say, a price reduction -is given to end
consumers. Tracking studies such as these are used frequently because the effects of
sales Promotion often show up quickly. Unfortunately, product managers tend to
look at the shaded above point a as shown. The simple analysis could be made is the
gain could be of fset by the crossha tched "dip" at point B, representing the
possibility that consumers have increased their inventories at home, thus negating
the need to rebuy soon.
The gain must be evaluated relative to a base amount: the amount of sales that would
have been generated had the Promotion not to run. This base line calculation is some
what difficult because it will change by the time.
The analysis does not account for other factors in the marketplace, including
actions by both the product in question and the competition.
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Product managers must carefully examine point C. The point at which sales seem to
return to "normal"; it could be higher than the base for some period of time,
representing a positive long-run effect.
If products have several Promotions running simultaneously, it is difficult to separate
the effects of one Promotion from another.
SHORT-RUN EVALUATION
Sales increase from Promotions may be generated by accelerating purchasing by loyal
buyers. Many coupon redeemers, May be Customers who would have bought the
product anyway and simply used the coupon as "found of money" or, at best, bought
the products somewhat sooner than they would have in the absence of a Promotion.
Basically, a coupon can have several incremental impacts:
1. Accelerated regular purchasethat is, regular buyers of the brand
simply buy sooner
2. Accelerated captured purchasespurchases that neither would have
bought at the time nor bought the promoted brand but are persuaded to
do both by the Promotion.
3. Uncelebrated regular purchasesregular buyers who use the coupon
as a "bonus" price cut.
4. Uncelebrated regular purchasespurchases of other brands who
switch to the promoted brand because of the Promotion.
Obviously, categories 2 and 4 are pluses and category 1 also represents incremental
sales, albeit borrowed ones. Category 3 is basically a negative. Category 1 is
potentially but not necessarily negative. If subsequent sales are depressed as a result
of increased inventory, there is no benefit and a clear cost. Of course, one possible
benefit of Promotion is that "captured" buyers will remain loyal and repeat purchase
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the promoted brand on a subsequent purchase occasion. It is possible that Promotion
increases category purchase quantity, either with or without depressing future
purchase quantity. Interestingly, considerable evidence seems to suggest that
increased quantity due to Promotion is neither preceded nor fallowed by decreased
quantity purchased.
To assess the value of Promotion, then it is necessary to estimate both the source of
additional sales and its overall magnitude. In addition, the profit consequences of each
need to be considered. Some Promotions have lower redemption rates than others that
are freestanding insert coupons versus on-pack or register a price discount, which
lessen their negative impact on profit margins but at the same time decreases their
impact on quantity. The main point here is that it is possible to estimate the impact of
a Promotion through systematic analysis and that the results of such analysis are often
quite sobering.
In addition to the direct effects of manufacturer Promotions on Customer, the
Promotion has an indirect impact on channel (retailer) behavior. Notice that a major
factor affecting the profitability of Promotions is whether or not a good is easily
stockpiled. Perishable goods and services cannot be stockpiled and hence paper towel
Promotions tend to result in stockpiling, and, if Promotion is matched by competitors,
actually lead to lower profits. In contrast, Promotions on underused services or
perishable goods may produce increasing profits.
LONG-RUN CONCERNS
Promotion also has two important long-run impacts. First is the impact of Promotion
on Customer perceptions of the brand. Brand bought on Promotion may be seen as
lower in quality and, the extreme, something it make sense to buy only on deal. A
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recent study suggests when long-run negative impacts are considered, the total
positive impact of a Promotion is only one-third its short-run impact.
COMPETITIVE REACTION
There is also concern about the impact of Promotions on competitors. Most markets
are oligopolies, and hence decisions need to take likely competitive reactions into
account. Not surprisingly competitors often match Promotions quickly, thus negating
many of the possible benefits while increasing costs. A Promotion spiral can ensue
with great benefit to Customers and harm to companies profits.
PROMOTION EFFECTS
Scanner data have been used extensively to assess the effects of Promotion on buying
behavior. We know consumers use coupons extensively. Further, while some
consumers purchase at regular intervals, some accelerate purchases and stockpile
goods in response to Promotions.
Given the prevalence of scanner data for supermarket and drugstore products, it is not
surprising that a large number of models have been developed to use them to asses the
impact of marketing variables such as Promotion or assuming primary demand
(market size) is constant on share. The models generally assess the value of each
brand to an individual Customer as a function of several components:
1. The inherent value of a brand-size combination. This is either treated holistically or
further decomposed into product attributes.
2. The non-product marketing mix elements: price, Promotion, the amount
of the Promotion, and advertising.
3. Carryover effects of past purchases.
4. Customer loyalty or inertia
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Scanner data are not a perfect means for assessing the impact of Promotions. They
generally include only household-level data, do not cover purchases at non-scanned
stores, and exclude many potential influences on sales. They are, however, a useful
and unobtrusive means for evaluating both natural and controlled experiments.
Scanner data are increasingly being used to compare different Promotions and provide
directional guidance to managers.
The impact of Promotion to the most is based on analysis of consumers packaged
goods and here are some of the analyses made:
1. Temporary retail price reductions substantially increase sales.
2. Higher market share brands are deal elastic
3. The frequency of deals changes the consumer's reference price.
4. The greater the frequency of deals, the lower the height of the deal.
5. Cross-Promotional effects are asymmetric, and promoting higher-quality
brands affects weaker brands disproportionately.
6. Retailers pass through less than 100 percent of trade deals
7. Display and feature advertising have strong effect on item sales.
8. Advertised Promotions can result in increased store traffic.
9. Promotional affect sales in complementary and competitive categories.
EVALUATING TRADE PROMOTIONS
The results of earlier has shown that many users of consumer Promotion would have
bought the product anyway, so they simply pocket the value of the Promotion stock
up at the low price. A similar problem exists for trade Promotions, the issue of "gray
markets". Gray markets involve authorized dealers or retailers that buy the product
from the producer and then resell it to other, unauthorized dealers. This practice is
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common when a company offers a volume discount and multiple dealers in effect pool
their orders to obtain it. Various Internet-enabled consortia have sprung up to take
advantage of these discounts.
Further, although many trade Promotions involve implied cooperation on the part of
the channel, these provisions are hard to monitor and enforce. Put differently.
Although the manufacturer's objectives are best served when Promotions are passed
through to consumers, channels' profits are often increased by retaining all or a
substantial amount of a Promotion allowances as profit. One way to evaluate trade
Promotions is as a necessary cost of doing business, an explicit recognition of the
growing power of mass merchandisers in consumer packaged goods marketing.
Trade Promotion now accounts for more of the Promotion budget than either
advertising or consumer Promotions. One reason is a key to increased volume.
Trade Promotion consisted of three basic typesoff-invoice discounts, sales drive
discounts, and special fall premiumsand their effects were treated separately. The
model included an "end-of-deal" variable to account for orders placed during the deal
period but not shipped until the next period. The sales drive consisted of a percentage
payment to channel when it sold units to the retailer. The special fall premium was
direct payment to the Manufacturer/s own sales force. To remove the impact of the
direction sales force were headed on their own the model also used a time trend term.
A different approach uses an expert system style modeling method (promoter) based
on the results of many past Promotions. This approach begins by developing a baseline
sales level based on trend and seasonality plus any unusual factors that may have
affected sales. Basically, a baseline estimation procedure relies on periods when
Promotion is zero. Incremental sales are then computed as the difference between
baseline and actual sales. Thus, in contrast to the multiple-equation approach
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PROMOTOR does not asses the process by which a Promotion works; rather it
concentrates on estimating its magnitude. The general findings from PROMOTOR are
the following:
Trade deals tend to have lower "pass-through"; that is, savings by the retailer are
passed along to consumers less than manufacturers hope. Retailers tend to forward buy
when they offered Promotions, allowing them to stock up and ultimately making
the Promotion unprofitable for the manufacturer. The effectiveness of trade deals
varies greatly across sizes of products and markets.
QUESTIONNAIRE
1. What Bike do you hold at present?
a) Brand b) Model c) Satisfy d) Mileage
2. wich promotion technique would prefer for increasing of sales?
a) Advertising b) Exchange Mela c) Scheme Coupons d) Others
3. Do you think Exchange Mela's will attract you in buying the Bike?
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a) Maximum b) Moderate c) Minimum d) Nil
4. Do you think Advertisement with Star amenities will attract you to buy the Bike?
a) Maximum b) Moderate c) Minimum d) Nil
5. Are you satisfied with the maintenance cost of'your Bike?
a) Maximum b) Moderate c) Minimum d) Nil
6. Do you think that SUZUKI Motors Company is following the above techniques for
increasing the sales and promotion of the brand?
a) Maximum I)) Moderate e) Minimum d) Nil
7. Do you feel that SUZUKI Brand Motors arc increasing their sales in the market?
a) Maximum b) Moderate c) Minimum d) Nil
8. Do you think that features of SUZUKI motors matches with the price of the Bike?
a) Maximum b) Moderate c) Minimum d) Nil
9. Do you have any Complaint about your Bike in terms of following?
a) Maximum b) Moderate c) Minimum d) Nil
10. Put the appropriate alphabet in the space available.
a)Excellent b)Good c) Moderate d) Less e) Nil
11. If you arc already owner of SUZUKI vehicle/hike, are you fully satisfied?
a) Maximum b) Moderate c) Minimum d) Nil
12. Would you like to buy SUZUKI two-wheeler motor in future? (Yes/no)
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CHAPTER-IV
DATA ANALYSIS
DATA ANALYSIS
1) Which promotion techniques would you prefer for your purchase?
I) Newspaper Advertisement
Options Maximum Moderate Minimum Nil
Responses 53 71 36 22
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Percentage 29% 39% 20% 12%
0%
10%
20%
30%
40%
50%
Maxim
Moder
Minim
Nil
potions
Percen
INTERPRETATION:
29% of the total customers have responded to the maximum extent that promotion
technique Newspaper advertisement is good.
39% of the total customers have responded that the promotion technique Newspaper
Advertisement is moderate.
20% of the total customers have responded that Newspaper Advertisement
Promotion technique is to the level of minimum. 12% of the total customers have
responded that News paper advertisement is not at all a promotion technique.
2) Which promotion techniques would you prefer for your purchase?
II) Exchange Mela
Options Responses Maximum
87
Moderate
54
Minimum
21
Nil
20
Percentage 48% 30% 12% 11%
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0%
10%
20%
30%
40%
50%
60%
Maxim
Mode
Minim
Ni
options
Pe
rce
INTERPRETATION
48% of the total customers have responded to the maximum extent that promotion
technique Exchange Mela is good. 30% of the total customers have responded that
the promotion technique Exchange Mela is moderate. 12% of the total customers
have responded that Promotion technique Exchange Mela is to the level of minimum.
11% of the total customers have responded that Exchange Mela is not at all a
promotion technique,
3) Which promotion techniques would you prefer for your purchase?
III) Scheme Coupons
Options Maximum Moderate Minimum Nil
Responses 70 61 30 21
Percentage 38% 34% 16% 12%
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0%
10%
20%
30%
40%
Maxim
Mod
e
Minim
Nil
options
Pr
ecen
0%
10%
20%
30%
40%
Maxim
Mod
er
Minim
Nil
options
Precen
INTERPRETATION
38% of the total customers have responded to the maximum extent that promotion
technique Scheme Coupons is good.
34% of the total customers have responded that the promotion technique Scheme
Coupons is moderate.
16% of the total customers have responded that Promotion technique Scheme
Coupons is to the level of minimum.
12% of the total customers have responded that Scheme Coupons is not at all a
promotion technique.
4) Which promotion techniques would you prefer for your purchase?
IV) Others
Options Maximum Moderate Minimum Nil
Responses 40 33 47 62
Percentage 22% 18% 26% 34%
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INTERPRETATION
22% of the total customers have responded to the maximum extent that Other
promotion techniques are good.
18% of the total customers have responded that the Otherpromotion techniques arc
moderate,
26% of the total customers have responded that Other Promotion techniques are to
the level of minimum.
34% of the total customers have responded not at all to the Other Promotion
techniques.
05) Do you think that Exchange Mela's will attract you in buying bike?
Options Maximum Moderate Mini in u in Nil
Responses 60 27 87 8
Percentage 33% 15% 48% 4%
0%
10%
20%
30%
40%
50%
60%
Maxim
Moder
Minim
Nil
options
Precent
INTERPRETATION
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33% of the total customers have responded that exchange mela's to the maximum
extent attract them to buy the bike.
15% of the total customers have responded moderately that exchange mela's are a
good source of buying new one's.
48% of the total customers have responded that exchange mela's will attract them
to buy the new to minimum.
4% of the total customers have responded that exchange mela's will have no effect on
them.
06) Do you think that Advertisement with Star amenities will attract you to buy the
Bike?
Options Maximum Moderate Minimum Nil
Responses 8 83 77 14
Percentage 4% 46% 42% 8%
0%
10%
20%
30%
40%
50%
Maxim
Mode
Minim
Ni
options
Pre
ce
INTERPRETATION
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4% of the total customers have responded that advertisements with star amenities will
attract them to maximum extent.
46% of the total customers have responded that they are
moderately attracted towards purchasing bikes of advertising with star amenities,
42% of the total customers have responded that advertisements with star amenities
will attract them to level of minimum.
8% of the total customers have responded that advertisements with star amenities
will have no effect on them,
07) Are you satisfied with the maintenance cost of your Bike?
Options Maximum Moderate Minimum Nil
Responses 75 80 10 17
Percentage 41% 44% 5% 9%
0%
10%
20%
30%
40%
50%
Maxim
Mod
er
Minim
Nil
options
Precen
INTERPRETATION
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41% of the total customers have responded that to the maximum extent they have
satisfied with maintenance cost.
44% of the total customers have responded that the maintenance cost of the bike is
moderate.
5% of the total customers have responded that the maintenance cost of the bike is to
the level off minimum,
9% of the total customers have responded that the maintenance cost is very much nil.
08) Are you aware of new SUZUKI brand Two-Wheelers in the Market?
Options Maximum Moderate Minimum Nil
Responses 92 75 14 1
Percentage 50% 41% 8% 1%
0%
10%
20%30%
40%
50%
60%
Maxim
Mod
er
Minim
Nil
options
Prec
en
INTERPRETATION
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0% of the total customers have responded that to the maximum extent they are aware
of the new models of the SUZUKI bikes.
41% of the total customers have responded that the awareness of the new models of
SUZUKI bikes is moderate.
8% of the total customers have responded that the they are aware of new one's to the
minimum level.
1% of the total customers have responded they arc not aware of the new models of
the SUZUKI bikes
09) Do you think that SUZUKI Motors Company is following the above techniques
for increasing the sales and promotion of the brand?
Options Maximum Moderate Minimum Nil
Responses 29 89 31 33
Percentage 16% 49% 17% 18%
0%
10%
20%
30%
40%
50%
60%
Maxim
Mod
er
Minim
Nil
options
Prec
en
INTERPRETATION
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16% of the total customers have responded that to the maximum extent they are
increasing the sales fallowing above techniques.
49% of the total customers have responded that the SUZUKIto increase sales by
fallowing above promotion techniques is moderate.
17% of (he total customers have responded that SUZUKI, to increase sales by
fallowing above techniques is to the level of minimum.
18% of the total customers have responded they are not at all fallowing above
promotion techniques to increase sales.
10) Do you feel that SUZUKI Brand Motors are increasing their sales in the market?
Options Maximum Moderate Minimum Nil
Responses 41 77 34 30
Percentage 23% 42% i 9% 1 6%
0%
10%
20%
30%
40%
50%
Maxim
Mod
er
Minim
Nil
options
P
recen
INTERPRETATION
23% of the total customers have responded that to the maximum extent SUZUKI are
increasing the sales.
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42% of the total customers have responded that the SUZUKI increasing sales are
moderate.
19% of the total customers have responded that SUZUKI increasing sales is to the
level of minimum.
16% of the total customers have responded they are not at all are increasing the sales.
11) Do you think that features of SUZUKI motors matches with the price of the Bike?
Options Maximum Moderate Minimum Nil
Responses 40 78 34 30
Percentage 22% 43% 19% 1 6%
0%
10%
20%
30%
40%
50%
Maxim
Moder
Minim
u
Nil
options
Precent
INTERPRETATION
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Among total 182 respondents:22% of the total customers have responded that to the
maximum extent SUZUKI features matches with the price of the bike.
43% of the total customers have responded that the SUZUKI features, matches with
the price is to moderate.
19% of the total customers have responded that SUZUKI features matches with the
price are to the level of minimum.
16% of the total customers have responded that SUZUKI features not at all matches
with the price of the bike.
12) Do you have any Complaint about your Bike in terms of the following?
Options Maximum Moderate Minimum Nil
Responses 36 80 36 30
Percentage 20% 44% 20% 16%
0%
5%
10%
15%
20%
25%
Ma
ximu
Moder
Minim
u
Nil
options
Precent
INTERPRETATION
20% of the total customers have responded that to the maximum
extent SUZUKI motors have repairs. 44% of the total customers have responded that
the repairs about SUZUKI motors are moderate.20% of the total customers have
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responded that repairs about SUZUKI bikes are to the minimum level. 16% of the
total customers have responded that SUZUKI motors do not have any repairs.
13) Put the appropriate alphabet in the space available?
Options Excellent Good Moderate Less Nil
SUZUKI 62% 17% 14% 7%
0%
0%
Others 64% 27% 9% 0%
0%
10%20%
30%
40%
50%60%
70%
E
xcell
Goo
M
oder
Les
Nil
Potions
Percen
INTERPRETATION
62% of SUZUKI and 64% of Other Customers have responded for the option
Excellent.
17% of SUZUKI and 27% of Other Customers have responded for the option Good.
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14% of SUZUKI and 9% of Other Customers have responded for the option
Moderate.
7% of SUZUKI and 0% of Others Customers have opted the options Less.
No customer have opted for nil
14) Style
Options Excellent Good Moderate Less Nil
SUZUKI 45% 36% 15% 4% 0%
Others 53% 24% 22% 0% 0%
0%
10%
20%
30%
40%
50%
60%
Exc
ellen
Goo
Mod
erat
Less
Nil
Potions
Percenta
INTERPRETATION
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45% of SUZUKI and 53% of Other Customers have responded for the option
Excellent.
36% of SUZUKI and 24% of Other Customers have responded for the option Good.
15% of SUZUKI and 22% of Other Customers have responded for the option
Moderate.
4% of SUZUKI and 0% of Others Customers have opted the options Less.
No customer have opted for nil
15). Comfort
Options Excellent Good Moderate Less Nil
SUZUKI 38% 50% 8% 4% 0%
Others 31% 64% 4% 0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
E
xcell
Goo
M
oder
Les
Nil
Potions
Percen
INTERPRETATION
38% of SUZUKI and 31% of Other Customers have responded for the option
Excellent,
50% of SUZUKI and 64% of Other Customers have responded for the option Good.
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8% of SUZUKI and 4% of Other Customers have responded for the option
Moderate.
4% of SUZUKI and 0% of Others Customers have opted the option Less.
No customer have opted for nil
16 ) Pickup
Options Excellent Good Moderate
10%
less
4%
Nil
SUZUKI 53% . 34% 0%
Others 56% 36% 4% 4% 0%
0%
10%
20%
30%
40%
50%60%
Exc
ellen
Goo
Mod
erat
Less
Nil
Potions
Percenta
INTERPRETATION
53% of SUZUKI and 56% of Other Customers have responded for the option
Excellent.
34% of SUZUKI and 36% of Other Customers have responded for the option Good.
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10% of SUZUKI and 4% of Other Customers have responded for the option
Moderate.
4% of SUZUKI and 4% of Others Customers have opted the options Less.
No customer have opted for nil
17) Cost Factor
Options Excellent Good Moderate Less Nil
SUZUKI 4% 10% 41% 45% 0%
Others 13% 16% 22% 49% 0%
0
0.1
0.2
0.3
0.4
0.5
0.6
Exc
elle
Goo
Moder
Les
Nil
Potions
Percent
INTERPRETATION
4% of SUZUKI and 13% of Other Customers have responded for the option
Excellent.
10% of SUZUKI and 16%'of Other Customers have responded for the option Good,
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41% of SUZUKI and 22% of Other Customers have responded for the option
Moderate.
45% of SUZUKI and 49% of Others Customers have opted the options Less.
No customer have opted for nil
18) If you are already the owner of SUZUKI bike/vehicle, are you fully satisfied?
Options Maximum Moderate Minimum Nil
Responses 20 79 28 10
Percentage 15% 58% 20% 7%
Percentege
0
20
40
60
80
Maximum Moderate Minimum Nil
optio
INTERPRETATION
15% of the total customers have responded that to the maximum extent the
performance of the SUZUKI bikes is good.
58% of the total customers have responded that the SUZUKI bikes performance is
moderate.
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20% of the total customers have responded that SUZUKI vehicles performance is to
the level of minimum.
1% of the total customers have responded mat SUZUKI vehicles performance is not
up to the mark.
19) SERVICE AND SPARES
Options Maximum Moderate Minimum Nil
Responses 89 21 17 10
Percentage 65% 15% 13% 7%
Percentege
0%
20%
40%
60%
80%
Maxim
Moder
Minim
Nil
opti
INTERPRETATION
65% of the total customers have responded that to the maximum extent the service
and spares is good.
15% of the total customers have responded that the SUZUKI bikes service and
spares is moderate.
20% of the total customers have responded that SUZUKI vehicles service and spares
is to the level of minimum.
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1% of the total customers have responded that SUZUKI vehicles spares and spares
are not up to the mark.
20. Would you like to buy SUZUKI two-wheeler motor in future?
Options YES NO
Responses 127 55
Percentage 70% 30%
70%
30%
INTERPRETATION
70% of the total customers have opted for the yes option which implies a greater
proportion of buying the SUZUKI vehicle.
30% of the total customers have opted for no.
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CHAPTER-V
FINDINGS CONCLUSIONS & SUGGETIONS
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FINDINGS
Most of the customers have the opinion that there is no resale value for the
SUZUKI brand two-wheelers in the Market, so there is a need to improve the
resale value of the SUZUKI products.
Brand image plays an important role for retaining the Customers to a particular
brand in the Market. So it is vital to standardize the brand image of the
SUZUKI motorcycles.
Dealers should ensure that more and more servicing centers are available in
the smaller towns.
More style, pickup and mileage products to be manufactured to meet the
satisfaction of the Customer and to retain them to the Brand of SUZUKI.
Small modifications to the existing models can bring enormous.
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CONCLUSIONS
Sales Promotion is an important function of any Organization in todays Market. Sales
Promotion deals with various promotion techniques for improving the Sales and
Brand awareness of SUZUKI Brand two-wheelers.
Knowing the importance of the Sales Promotions in to-days Market, I want to
conclude by saying that the SUZUKI Brand two-wheelers should carry out the various
program's for increasing the Sales of SUZUKI brand two-wheelers in the Market.
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SUGGETIONS
It is advised to stability the Brand name and increase the Mileage of the
bike to attract the middle and lower middle class people.
It is advised to give advertisement in local channel, which may boost the
business in local areas.
Change in the perception of the Customers towards SUZUKI bikes.
It is advised to reduce the price of the spare parts to target the middle and
lower class income people.
Efforts to be made to capture uncovered areas.
It is advised to increase promotional schemes to attract more number of
people free servicing of the vehicles should be carried out effective
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BIBLIOGRAPHY
Principles of Marketing -Kotler Amstrong
Essence of Marketing -Majaro
Basic Marketing -Me Carthy
Product Management -Donald R. Lehman
Internet