Rahul Fiat Cars

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The automobile as we know it was not invented in a single day by a single inventor.

The history
of the automobile reflects an evolution that took place worldwide. It is estimated that over
100000 patents created the modern automobile. However, we can point to the firsts that occurred
along the way. Starting with the first theoretical plans for a motor vehicle that had been drawn up
by both Leonardo Da Vinci and Isaac Newton.
In 1769, the very first self-propelled road vehicle was a military tractor invented by the
French engineer and mechanic, Nicolas Joseph Cugnot. Cugnot used a steam engine to power
this vehicle, built under his instructions at the Paris arsenal by mechanic Brezin for the French
army, to haul artillery at a whopping speed of 2.5 mph on three wheels. The vehicle had to stop
every ten to fifteen minutes to build up steam and boiler was separated from the rest of the
vehicle and placed in front. The following year 1770, Cugnot built a steam-powered tricycle that
carried four passengers.
In 1771, Cugnot drove one of his road vehicles into stonewall, making Cugnot the first person to
get involved in a vehicle accident. This was the beginning of bad luck for the inventor. After
Cugnot died road vehicle experiments ended.
Steam engines added so much weight to a vehicle that they proved a poor design for road
vehicles; however, steam engines were very successfully used in locomotives. Historians, who
accept that early steam powered road vehicles were automobiles, feel that Nicolas Cugnot was
the inventor of the first automobile.
On March 8, 1886; Daimler took a stagecoach and adopted it to hold his engine, there by
designing the worlds first four-wheeled automobile. Daimler is considered as the first inventor
to have invented a practical internal combustion engine.
Daimler founded the Daimler Motoren-Gesellschaft to manufacture his designs. Eleven years
later, Wilhelm Maybach designed the Mercedes automobile.
By the early 1900s, gasoline cars started to out sell all other types of vehicles. The market was
growing for economical automobiles and the need for industrial production was pressing. The
first car manufacturers in the world were French, Panhard&Levassor and Peugeot. By car
manufacturer, we mean builders of entire motor vehicles for sales not just engine inventors who

experimented with car design to test their engines, Daimler and Benz before becoming full car
manufacturers made their early money by licensing their patents and selling their engines to car
manufacturers.
Later the use of tyres and efficient brake system were also invented and society started accepting
the vehicle more as convenience and economical for their use, automobile manufacturing started
allover.
American car manufacturer, Henry Ford invented an improved assembly line and installed
conveyor belt based assembly line in his car factory in Fords Highland park, Michigan plant,
around assembly line reduced production costs for cars by reducing assembly time. Ford made
his first car, called the QUADRICYCLE in June 1896. However he formed the Ford Motor
Company in 1903. This was the third car manufacturing company to produce and design. After
the installer assembly lines in his factory in 1913, Ford became the biggest car manufacturer.
Then the popularity of cars grew with terrific speed all over the world and several other car
manufacturers started their production. Initially, the cost was high per car but as the line of
production proceeded, the costs came down by at least 50%.
The present day car manufacturers are in search of models that will be economical, as fuel
shortages are affecting the running cost. Alternative energy sources are under research. More
widely accepted alternative source is the electrical energy with series of batteries or solar energy.
The present models are constantly improving by continuous research on all aspects of the car
efficiency.
In India, the first manufacturing unit of cars was in early 40s. Hindustan Motors were the
pioneers to start the manufacturing of cars in India, which was later followed by Premier
Automobiles that set up a manufacturing unit in the suburbs of Mumbai. The two Indian
companies had to face a tough time in Indian market due to the free availability of foreign
models in India.
Indian passenger car industry is over 4 decades old. There was no serious attempt at upgrading
the technology until recent years. Even when petrol prices shot up, there was no attempt by
Indian manufacturers to go in for fuel efficiency technology. It was in the early 80s, which
paved the way for the introduction of a fuel-efficient car in the Indian market.

Automobile industry in India is still in its infant stage but rapidly growing. The opportunities in
the automobile industry in India are attracting big names with big purses and they are investing
vigorously in infrastructure, design and development, and marketing. Automobile industry in
India is today poised for the big leap.
India is the second largest two-wheeler manufacturer in the world.
Second largest tractor manufacturer in the world.
Fifth largest commercial vehicle manufacturer in the world.
Third largest car market in Asia, surpassing China.

INTRODUCTION:
FIAT was founded in Italy in 1899. FIAT is an acronym for Fabrica Italian Automobiles Torino.
In 1902, the company was appointed a director, namely, Giovanni Agnelli. In 1908, the company
branched out overseas to the United States where production increased. Fiat then ventured into
other industries such as steel, electricity and public transport. During the First World War, all
production was aimed at munitions. During the reign of Mussolini, Fiat had to concentrate on the
domestic market. Technological developments were vast for commercial vehicles, aviation and
railway sectors. With the arrival of the second world war, the production of cars almost ceased as
commercial vehicles had more of an impetus. 1958 marked the beginning of the economic boom
in Italy.
Domestic production and that from FDI increased as the automobile was the driving force of the
Italian economy. From 1965 to 1977 production continued to increase along with exports but
there was also a rise in trade union conflicts resulting in 15 million hours of strikes in 1969
collectively. 1978 brought the dawn of robotic assembly equipment.
In 1979, the auto sector was established as an independent company called Fiat Auto S.p.A
which incorporated Fiat, Lancia, Autobianchi, Abarth and Ferrari. Alfa Romeo was acquired in
1984 and Maserati 1993. Also in this era, other companies were set up. In addition to Fiat Auto,
Fiat Ferroviaria, Fiat Avio, Fiat Trattori, Fiat Engineering, Comau, Teksid and MagnetiMarelli
were established, all under the Fiat brand. In the early 1990s, Fiat expanded it product range to
international markets which resulted in 60% of its turnover coming from outside of Italy.
Innovation continued in the turn of the millennium with the introduction of Multijet engines
which increased fuel economy. More recently, in 2009, Fiat saved GM from collapse in a swift
equity acquisition. GM was hit hard with the credit crisis and now chief executive, Sergio
Marchionne, has the task of developing a strategy in order to help rehabilitate the damaged
company (Betts, 2009).

President Obama has faith that the Fiat chief will be able to instil stability back to the depleted
firm (Betts, 2009). Fiat also had its eyes set on the acquisition of German giant Opel. It was
bidding along with RHJ International and Magna. Eventually, General Motors decided to pull out
of the sale of its subsidiary, Opel (Robinson, 2009).
If this acquisition had been achieved it would have meant a massive market share in Europe for
Fiat and market dominance (Weismann, 2009).Due to the size of the Fiat group, this report will
only focus on Fiat cars and the car market.
FIAT Group Automobiles India Private Limited (FGAIPL) is a fully owned subsidiary of FIAT Group
Automobiles S.p.A, Italy. The company was incorporated in Mumbai, India, in March 2012 and will
distribute FIAT and Jeep vehicles in the country through an independent dealer network. The company
is currently selling the FIAT Linea and Punto models, which are manufactured by the Tata-FIAT joint
venture plant at Ranjangaon. The company in India will have around 100 employees and plans to have
120 dealers by the end of 2013.
FIAT is an international auto group that designs, produces and sells vehicles for the mass market under
the FIAT, Lancia, Alfa Romeo, FIAT Professional and Abarth brands, as well as luxury and
performance cars under the Ferrari and Maserati brands. The Group has increased its global reach through
the integration with Chrysler Group and recently expanded its product portfolio with Jeep and Chrysler
brand models that are produced in North America and now also distributed in Europe through the new
Lancia-Chrysler and Jeep sales networks. FIAT also operates in the components sector, through
MagnetiMarelli and Teksid, and in the production systems sector, through Comau.
FIAT Group Automobiles designs, produces and sells automobiles under the FIAT, Alfa Romeo, Lancia
and Abarth brands, and light commercial vehicles under the FIAT Professional brand. In Europe, it also
distributes Jeep brand vehicles. From January 2012, the activities of FIAT Powertrain which
researches, develops and produces engines (power output from 65 to 235 hp) and transmissions for
passenger cars and light commercial vehicles (torque up to 400 Nm) were transferred to FIAT Group
Automobiles.

STATEMENT OF THE PROBLEM


It is true that consumers of both industrial and consumers of goods exhibits various
attitudes and behavior toward the products and service offered and rendered to them. This
is basically because presently consumers income is very low due to the economic
predicament coupled with the other environmental factors that influence their buying habit
many consumers preferred to spend their hard earned resources on essential goods like
food stuff, clothes, shelter and other immediate requirement.

In a developing economy like Nigeria, it is not enough for manufactures to just produce and
expect consumer will buy their product or services without considering what they will benefit
or deprive from it. Hence sales promotion becomes inevitable. Manufacturers are faced with
the problem of products substance and competition. So for that reason many manufactures
now attempt to stimulate and get consumers attention with customer loyalty, increase
market share by using sales promotion tools on goods and service.
Organizations usually encounter problems such as lack of management known how not
appointing the right and experience marketers or sales promotion experts. More sales
promotions carried out by organizations are usually badly organized and implemented
which leads to the aim being defeated thereby having a direct effect on sales volume and
profit. This problem of low sales and low demand have promoted producers to use sale
promotion to compliment the use of other promotional mixes like advertising personal
selling, publicity and public relations.
However, it has been observed over the year that some producers do not employ the use of
appropriate sales promotional tools and methods, to enhance the achievement of stated
goals, and have neglected the importance of marketing concept which is people oriented
philosophy that regarded the customers as a king and sole aim of the business existence.
Some of the questions the study will answer are what impact does sales promotion has on
the sales performance of an organization.
1.4 OBJECTIVE OR PURPOSE OF STUDY
All research or product work ought to have purpose or objective will be meaningless. For
the purpose of this study the followings are the objectives of the project.

1. This study will highlight the prospect and importance of sales promotion in an
organization
2. The study will also highlight the role of sales promotion and also recommend on
measures to be used in order to improve on sales performance of an organization.
3. The major objective is to examine how the company creates awareness and the
impact of sales promotion in the Brewery Industry.
4. The study will also assess the contribution and efforts of sales promotion to improve
the sales of an organization.
1.5 SCOPE FO THE STUDY
This research study cover all products of Nigerian Breweries Plc Kaduna consumers within
confines of Unwar Television in Chukun Local Government Area of Kaduna State to
examine what the impact of sales promotion strategies on customers patronage.
1.6 DEFINITION OF TERMS
1. Sales Promotion: May be described or defined as the use of short term incentives
periodically to stimulate or encourage consumers to buy product
2. Consumer: One who buys and uses goods and services to satisfy personal or
household ants or for resale.
3. Advertising: Any paid form of non personal presentation and promotion of ideas,
goods or services by an identified sponsor in the Radio Television or cinema
4. Consumer Goods: goods destined for use by the infinite consumer or a household.
5. Marketing: Is the management function that is concerned with the identification
anticipation and satisfaction of customer wants. It organises and directs all the
business activities involved in accessing and converting consumer purchasing power
into effect demand for a specific product or service and in moving the product or
service to the final consumer to achieve the profit target get by the organization.

6. Public relations: Conscious effort to improve and mention a good corporate image
and relationship with pubic and employee and customers, shareholders, local
communities, trade union etc.
7. Personal selling: The process of making oral commercial representation during a
buying / seller interview situation. This is collegially referred to as face to face selling
or known as buyer / seller interface
8. Promotional mix: This is the set tool used by manufacturers to persuade
consumption habit. They are advertising, personal selling, sales promotion, publicity
and public relations.
9. Marketing communication: Conveying of information from the marketing to the
market with the aim of creating awareness and obtaining favourable attitude toward
the company and its products or service.
10. Marketing mix: This is a concept of marketing strategy which is based on product,
price promotion, distribution, processing and pack gaining in an integrated marketing
programme.
11. Competitors: These are business rival usually in charge of sales who sell or
persuade buyers to buy the companys products or service who are controlled by
the national or regional sales manager.
12. Dealers: Middlemen in distribution channels who buy goods in order to resell them,
but not always to the general public. This is general synonymous with retailers but it
is often referred to the large distributors.
1.7 LIMITATION OF THE STUDY
In the process of undertaking, this research work, a number of problems both directly or
indirectly have affected the study. Brewery products like other branches are consumed
virtually buy many people every day. It has been the intention of the researcher to cover all
other branches of breweries to determine to what effect sales promotion has on consumers
and dealers. The time is a major constraint to the study. Attitudes of consumers and
consumers are generally unpredictable as some of them are not willing to give useful
information. It was limited to the impact of sales promotion.

Objectives of Sales Promotion


1. Stimulating Demand:
The most important use of sales promotion is to build demand by convincing customers to make
a purchase. Special promotions. Especially those that lower the cost of ownership to the
customer (e.g., price reduction ), can be employed to stimulate sales.
2. Building Product Awareness:
Several sales promotion techniques are highly effective in exposing customers to products for the
first time and can serve as key promotional components in the early stages of new production
introduction. Additionally, as part of the effort to build product awareness, several sales
promotion techniques posses the added advantage of capturing customer information at time of
exposure to the promotion.

3. Creating Interest:
Marketers find sales promotion are very effectives in creating interest in a product. In fact,
creating interest is often considered the most important use of sales promotion. Another
important way to create interest is to move customers to experience a product. Several sales
promotion techniques offer the opportunity for customers to try products for free or at low cost.

4. Providing Information:
Generally sales promotion techniques are designed to move customers to some action and are
rarely simply informational in nature. However, some sales promotions do offer customers
access to product information.

5. Reinforcing the

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