Chapter-1: A Study On Sales Promotion

A Study on Sales Promotion
CHAPTER-1
INTRODUCTION
S.R.N ADARSH COLLEGE Page 1

SALES PROMOTION
Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution decided, the manufactures
has to take effective steps in meeting the consumers in the markets. In the present
consumer oriented markets it is the duty of manufacturers to know what is required
by the consumer. It is also their duty to make the customers know where, when
how and at what prices. The products would be available.
Meaning of Promotion
The term promotion is the term and includes mainly three type of sales
activity:
1. Mass impersonal selling methods (Advertising).
2. Face to face personal selling (Salesman ship).
3. Activities other than personal selling and advertising such as point of purchase
display (P.O.P.) show and exhibitions, demonstrations and other non securing
selling efforts. This form of activity is called ‗Sales Promotion‘.
Promotion and Sales Promotion
Similarly the terms sales promotion cannot be taken to mean what is commonly
does. Sales promotion is only a part of the promotion. Basically promotion is an
"exercise" in information persecution and influence. Promotion has come to mean
the overall co-ordination of advertising selling, publicity and public relations.
Promotion is a helping function designed to make all other marketing activities
more effective and efficient. But sales promotion as such helps only the selling
activity still, there exit same difference of opinion on the real connection of the
term sales promotion.

According. To A.H.R. Delons:-
"Sales promotion means any steps that are taken for the purpose of obtaining or
increasing sales".
According. to W.Q. Kelly Opines:-
"Muddled misused misunderstood that is sales promotion Acc. to him the field of
sales promotion as a marketing activity is still vaguely defined and organized.
Sales Promotion and Advertising
There is no universally accepted distribution between these two terms. To same

advertising includes all forms of mass media communication directed towards
influencing the end consumer. Sales promotion on the other hand, includes the
form of mass communication directed towards information and influencing the
channel of distribution (e.g. distributors, retailers etc.). Hence a price of product
literature distributed by retailers in sales promotion. These sales promotions merge
on one side in to advertising and on the other in to personal salesman ship. It is
concerned with the dissemination of information to whole sellers, retailers,
customers (both actual and potential, and to the salesman).
Sales promotion is concerned with the creation. Application and dissemination of

material and techniques that supplement advertising and personal selling. Sales
promotion makes use of direct mail, catalogues, trade shows, sales contests,
premiums, samples, windows displays and other aids. Its purpose is to increase the
desire of salesman, distributors and dealers to sell a certain brand to make
consumers more eager to buy that brand. Personal selling and advertising do
include prospects to make these decisions. Sale promotion provides an extra
stimulus.

Objective of Sales Promotion
 To increase sales directly by publicity through media which are

complementary to press and poster advertising.
 To disseminate information through sales man dealers etc. So as to insure
the product getting in to satisfactory use by the ultimate consumer.
 To attract new consumer.
 To face the competition effectively.
 To help salesman in selling more to the retailers and consumers.
 To check seasonal decline in sales. Generally speaking sales promotion
involves rendering the following services:-
o Services to dealers.
o Services to own salesman.
o Special publicity.
Sales Promotional at different levels
1. Sales promotion at Dealers Level:-
It may include various schemes some of which are discussed here.
(i) Advertising Materials:-
The advertising material prepared by the company such as store signs, banners,
shelf signs, board etc. are distributed to sub dealer for display purposes this is in
fact a method of advertising.
(ii) Store Demonstration:-
In the promises of the whole seller or the retailer the products sales personnel will
conduct special demonstration for the company‘s product. A personal
demonstration is good to introduce a new product at its peculiar advantage can be
high lightened and the consumer‘s doubt clear. It can be used to restimulated an

old product. A good demonstration with a great dealer of action will draw heavy
crowds in to the store and will attract attention to the product.
(iii) Special Display and Shows:-
These are in seasonal in character but could be arranged in an elaborate manner

and for all the products of an company. Usually these are arranged along with trade
fair and exhibition. Besides effecting sales these shows impress the company‘s
name generally on the public.
Sales promotion at consumer’s level
The various schemes of sale promotion at Consumer‘s Level may include.
1. Coupons (A Chit of Stated Value) :-
These are given directly to the consumer these coupons are in most cases kept
inside the package. The consumers many receive a price reduction of the stated
values of the coupon at the time of purchase. The retailer receives reimbursement
for the value of the coupon form the manufacturer. Coupons act as a short run
stimulus to the sale of the product, since they are directly tied with the purchase of
the item. They encourage the retailer to stock the product.
What is important is that a coupon offer does not spoil the named price of the
brand nor does it UN pair the margin of the dealers. But it is not easy to measure
the effectiveness of a coupon offer. One over knows how many customer would
have bought the product without the incentive. It is also difficult to find out how
many customers were held after the coupon offer expired.
2. Price-off-offer (Also known as bargain offer price packs) :-
This offer is intended to stimulate the sales during a slump season. In this method
the customer is offered a reduction from the printed price list. It is also used when
a substitute for competing product enters the market.

Many experts on sales promotion fed that ‗Off Schemes‘ are among the weaker
and less desirable methods of promotion. These can be trade resentment
particularly when the retailer raises the price to retain his margin. Secondly that is
not conductive to building up brand loyalty. Consumers may simply shift to the
products that offer this scheme.
3. Samples:-
In the hope of converting a prospect into a customer a sample (Some quantity of

the product) may be given. This helps the consumer to verify the real quality of the
product. Various pair manufacturing companies offer this method. For developing
brand loyalty this method is quite useful. Sampling is a fast method of demand
creation because one knows the result as soon as the consumer has had time to use
the sample and buy the brand.
Disadvantage of Sampler:-
Offering sample in quit expensive. There is the cost of producing samples. The
distribution costs are also high. Samples have to be mailed to potential customers
or to be distributed through retail shops. There are also problems when the real
product does not resemble the sample supplied.
4. Money Refund Offer:-
An offer usually stated on the package is that manufacturers will return within a
stated period part or all of the purchaser‘s money if he is not completely satisfied
with the product.
5. Trading Stamps:-
A premium in the form of stamps is given by the sellers to consumers while selling
goods. The number and value of stamp that the buyer receives depends on the
values of the purchase. These stamps are redeemable through premium catalogues
at the stamp redemption centres.

6. Buy-Back Allowance:
This an allowance following a previous trade deal not offer a certain amount of
money for new purchases based on the quantity of purchases on the first trade deal.
It extends the life of a trade deal and helps to prevent part deal sales decline. It
greatly strengthens the buyer‘s motivation to co-operate on the first deal.
7. Premium:-
There are various forms of premiums provided by the manufacturer as sales

promotional devices:-
(a) Coupons are supplied for effecting price reductions.
(b) Factory in pack premium these are popular in the case of Body food and Tin
food items, Spoons, Cups, Measuring, Glass etc. and such other items are packed
with the product in the box itself. Factory in pack premium are particularly goods
for product meant for children. The Binaca Toothpaste packs contain animal shape
toys. These are very attractive and quite popular among the children.
(c) Self Liquidating Premiums:-
The cost of the premium is collected from the buyer himself. But when the buyers
pays for it he has to pay only a considerably low price for the premium. This is
possible for the manufacturer purchases the items in bulk at a premium and his cost
per unit as is substantially low.

Other Steps by Manufacturer for Promoting Sales
Dealers can be helps in different ways:-
1. Communicating Market News:-
Often this service is reciprocal the manufacturer may acquaint his dealer with the
fact relating to his production and prices while the dealer may familiarize him in
return with the information bearing on charges in the consumer's demand, their like
and dislike complaints and criticism, substitutes etc.
2. Inviting to Sales Conference and Convention:-
The gestures of regard and respect pave the way for better relation and co-
operation.
3. Offering Reasonable Terms of Sale:-
Of all the forms of encouragement, the monetary incentive evokes immediate

response. Hence every producer must offer the most responsible terms of sale such
as longer periods of credit and higher rates of descants.
4. Supplying suitable packages and useful things.
5. By taking the return back.
6. By furnishing them with sales literature and display materials.

Aggressive Selling
Meaning:-
Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers use various sales efforts to obtain increased
sales volume for his product it is called aggressive selling or offensive selling. The
sales efforts which a manufacturer makes to retain his customers i.e. to protect his
already established market against his competitors is termed as defensive
selling. In contrast to this aggressive selling is concerned with the sales efforts
made with the express objective of selling more by expanding the market for the
product of the selling firm.
Aggressive Selling and Defensive Selling:-
Aggressive selling is based on the answer to the question how much does the firm
gain (in term of sales with profit) by using this method defensive selling is based
on consideration as to how much the firm will lose if it does not use this method
increase of sales can be obtained from two sources:-
1. New customers if the market is expending.
2. From the competitors i.e. those consumers who were purchasing similar product
of competition firms, if the market for the product is static.
According. To H. Whitehead:-
"In case of an expanding market the entire firm may stand to gain by following the
methods of aggressive selling but if the market is static manufacturer of a new
market will have to be much more aggressive to capture the established market of
competitors".

When Aggressive selling is resorted?
Usually manufacturer of a new product has to do aggressive selling:-
1. When the product has been improved.
2. When the manufacturer‘s product is supervisor in quality to the product of the

established competitor.
3. When the total market for the product or line of product to expanding.
4. If the manufacturer‘s share of the market is comparatively small.
5. If the manufacturer has unused production capacity with heavy investment in

plant and equipment he will like to develop the demand for his product rapidly so
that demand for his product is equal to the optimum production capacity of his
plant ; and
6. When primary demand for a product must be created and provision must be
made in the channel of distribution to educate consumers regarding the new
product and to instruct them in its use.
Method of Aggressive Selling:-
Sales promotion efforts use for aggressive selling may be divided in two classes.
1. Trade Promotion.
2. Consumer Promotion.
1. Trade Promotion:-
Under trade promotion methods special incentives are offered to the trader to buy
products of the firm. Such incentive may take one or more of the following firm :-

(a) Cash Allowance:-
A definite percentage of discounts are allowed on the purchase of given unit of a

product.
(b) Extra Product:-
Instead of giving any cash allowance extra product is given with each unit of
product ordered. For instance if a box normally contains 20 Cakes of Soap, special
box contains 25 cakes may be made and sold at the same price as that of the box of
20 cakes.
(c) Gifts:-
Various gifts are awarded in return for an order of a particular magnitude.
2. Consumer Promotion:-
Under consumer promotion method special incentives are offered to the consumers
to buy the firms product. The more prominent amongst such incentives are as
following.
(a) Coupons:-
A coupon of a giving value is sent to the consumer. By presenting this coupon to

the retailer consumers can purchase a particular product mentioned on the coupon
at a reduced price. The retailer sells the products mentioned. In the coupon to such
consumer (consumers presenting the coupons) under an agreement with the
manufacturer at a price lower than the user retail price. Thus the consumers get the
benefit of reduced price to the extent of the value of the coupons.
(b) Self Liquidating Offers:-
Under this system, the firm offers an article at an attracting price if the consumers
send a given sum of money accompanied by a given number of box tops from the

packages of a particular product the benefit to the consumer is that he receives the
articles at a bargain price.
(c) Bargain Packs:-
Under this system a product is sold at a reduced price for a short period Bargain
pack method encourages new consumers to try the product. It is also helpful in
obtaining large displays in the shops.
(d) Sampling:-
The method involves giving the product or a small quantity of the product to a
consumer free with the hope that the customer will be favorable impressed with its
actual use and will eventually become a regular purchaser of the product.
A firm selling new product or an extensively improved product finds this method
useful. Also a firm whose market is hold by competitors whose free sampling
almost expensive.
The above mentioned methods may be reinforced by adopting.
(i) Direct method of selling through.
(ii) Offer of door to door selling.
(iii) Hire purchase and installment payment methods of selling and by forming
combination.
Other Methods of Aggressive Selling:-
(i) Employment of ‗Missionary Salesman also known as Promotional Salesman‘.

These salesmen call upon retailers and aggressively promote a product.
(ii) Instead of using wholesalers, the firm may develop its own sales force to call
directly on retailers.

(iii) The firm may follow a compromise method by employing a manufacturer‘s

agent and giving him a large enough commission to encourage him to sell product
intensively and aggressively.
(iv) New territory exploitation sales promotion has a particularly important role in
developing the company‘s product in new territories.
Marketing
Marketing is a social and management process by which individual and
group obtain what they want thought creating, offering and exchanging product of
values with other. Marketing is concern with meeting business objectives by
providing customer satisfaction.
―Achieving organization goals depend on determining the need and wants of

the target market and delivering the desired satisfaction more effectively and
efficiently than competitors‖ - Philip kotler
 FUNCTIONS OF MARKETING:
1. Buying and Assembling
2. Selling
3. Transportation functions of physical supply
4. Storage
5. Facilitating functions
6. Financing
7. Risk taking
8. Standardization and grading
9. Market information

Marketing concept
 Is found on the brief that profit can be best achieving by identifying,
anticipating and satisfying customer need and wants.
 A company which has adopted this concepts and philosophy placed the
customer at the centre of all business decisions.
 Customer need permeate all levels and functions in the organization.
 Co-ordinate and integrate all marketing activities that might affect customer.
Marketing concept
The achivement of
goals through
meeting and
execeeding customer
needs better than
rivals
Achievements of
customer orientation Integrated effort goals by satisfying
customer
Marketing research
Marketing research involved conducting research to support marketing
activities, and the statistical interpretation of the data into information. This
information is then used by managers to plan marketing activities, gauge the nature
of a firm‘s marketing environment and attain information from suppliers.
Marketing researchers use statically methods such as a quantitative research,
hypothesis tests, and chi squared tests, linear regression, correlations, frequency
distribution, binomial distributions, etc. to interpret their findings and convert data

into information. The marketing research process spans a number of stages,

including the definition of a problem, development of research plan, collection and
interpretation of data and disseminating information formally in the form of are
port. The task of marketing research is to provide management with relevant,
accurate, reliable, valid, and current information.
A distinction should be made between marketing research and market

research. Market research pertains to research in a given market. As an example, a
firm may conduct research in a target market, after selecting a suitable market
segment. In contrast, marketing research relates to all research conducted within
marketing. Thus, market research is a subset of marketing research.
Market segmentation
Market segmentation pertains to the division of a market of consumers into
persons with persons with similar needs and wants. For instance, Kellogg‘s
cereals, Frostier are marketed to children. Crunchy Nut cornflakes are marketed to
adults. Both goods denote two products which are marketed to two distinct groups
of persons, both with similar needs, traits, and wants. In another example, Sun
Microsystems can use market segmentation to classify its clients according to their
promptness to adopt new products.
Market segmentation allows for a better allocation of a firm‘s finite

resources. A firm only possesses a certain amount of resources. Accordingly, it
must make choice in servicing specific groups of consumers. In this way, the
diversified tastes of contemporary western consumers can be served better. With
growing diversity in the tastes of modern consumers, firms are taking note of the
benefit of servicing a multiplicity of new markets. Market segmentation can be
defined in terms of the STP acronym, meaning Segment, Target and Position.

Types of Market research
Market research, as a sub-set aspect of marketing activities, can be divided

into the following parts:
 Primary research (also known as field research), which involves the

conduction and compilation of research for a specific purpose.
 Secondary research (also referred to as desk research), initially conducted
for one purpose, but often used to support another purpose or end goal.
By these definitions, an example of primary research would be market
research conducted into health foods, which is used solely to ascertain the
needs/wants of the target market for health foods. Secondary research in this
case would be research pertaining to health foods, but used by a firm
wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret
from data to information. Nevertheless while secondary research is relatively
in expansion, it often can become out dated and outmoded, given that it is
used for a purpose other than the one for which it was intended. Primary
research can also be broken down into quantitative research and qualitative
research, which, as the term suggest, pertain to numerical and non-numerical
research methods and techniques, respectively. The appropriateness of each
mode of research depends on whether data can be quantified (quantitative
research), or whether subjective, non-numeric or abstract concepts are
required to be studied (qualitative research)
There also exist additional modes of marketing research, which are:

 Exploratory research, pertaining to research that investigation an
assumption.
 Descriptive research, which, as the term suggests, describes ― what
is‖.
 Predictive research, meaning research conducted to predict a future
occurrence.
 Conclusive research, for the purpose of deriving a conclusion via a
research process.

Marketing Strategy
The field of marketing strategy considers the total marketing environment

and its impacts on a company or product or service. The emphasis is on ―an in
depth understanding of the market environment, particularly the competitors and
customers.‖
A given firms may offer numerous products or services to a marketplace,

spanning numerous and sometimes wholly unrelated industries. Accordingly, a
plan is required in order to effectively manage such products. Evidently, a
company needs to weigh up and ascertain how to utilize its finite resources. For
example, a start-up car manufacturing firm would face little success should it
attempt to rival Toyota, ford, Nissan, Chevrolet, or any other large global car
maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the
issue of divert, or a ceasing of production, may be made. Each scenario requires a
unique marketing strategy. Listed below are some prominent marketing strategy
models.
MARKETING MIX
Marketing mix is a mix of controllable elements or tools which is a company use in
its marketing plan.
DEFINATION:
―Marketing mix is the firm the best solution for its marketing decision variables;
the settings constitutes its marketing mix‖
THE 7P‘s OF MARKETING ARE:-
1. Product
2. Place
3. Price
4. Promotion
5. People

6. Process
7. Physical evidence
1. PRODUCT:
A product is the first p in the marketing mix it can be understood as any tangible
good which satisfies the needs and wants of the customers and fetches the value in
exchange. The term ‗product‘ refers to tangible, physical products as well as
service. In the case of physical products, it also refers to any services or
conveniences that are part of the offerings. Product includes are:
 Packaging
 Quality
 Brand name
 Safety
 Styling
 Technology
 Usefulness
 Warranty
 Value
2. PRICE DECISIONS:
Price is a major marketing tool and helps in directing the product to a specific
consumer segment. It is the price of the product or a service that ensures a decent
return in investment, guarantees stable economic structure, creates, maintains and
extends market and market share. Price includes:
 Price discrimination.
 Price flexibility.
 Pricing strategy.
 Seasonal pricing.
 Volume discount and wholesale pricing.
 Suggested retail price.

3. PLACE (DISTRIBUTION) DECISIONS:
The channels of distribution is the organized network or a system of agencies and

institution which in combination perform all the activities required to link
producers with users to accomplish the marketing task. The distribution system
performs transactional, logistical, and facilitating functions. Distribution channels
include:
 Warehousing
 Transportation
 Distribution Channels
 Distribution Centers
 Inventory Management
4. Promotion Decisions:
Promotion mix is the communication mix which deals with the personal and
impersonal persuasive communication about the product or service of the
manufacturer. Promotions are related to communicating and selling to potential
consumers. It is done with the objective of generating a positive customer
response. Promotion includes:
 Advertisement
 Sales Promotion
 Personal selling & sales force
 Public relation
 Publicity
 Special Offers
 User trials
 Free Gifts.

5. People:
This refers to mainly the service provider and service receiver. Since providing the
service isn‘t tangible, both the provider and the receiver must be physically present
together at the same time and the same place in order to provide and encounter the
service, respectively.
The receiver trusts the provider and as a result, affects the purchasing decision in
the marketing and the management of services in their role both as provider of the
service and the customer. People include:
 Employees
 Management
 Culture
 Customer service.
6. Process:
Process here means step-by-step method of the sequential method as a service must
be provided to the customer. If there‘s no proper method or process of providing
the service, then the customer‘s needs won‘t be fulfilled and as a result, the
satisfaction derived after being provided with service will be very low and the
customer might not come back again to the same provider, to encounter the
service. Hence process mix is very important in services marketing. Process
includes:
 Especially related to service industries.

 How are services consumed?
7. Physical Evidence:
This is the marketing mix available to the service providers where in, it is the
physical place where the service encounter takes place. This includes not only
building, but also right ambience which must also be appropriate and suit the type

of service being provided. The potential customers form impression about the
service organizations on the basis of physical evidence like brochures, stationery,
equipment, furniture and building. Physical Evidence includes:
 Facilities
 Comfort
 Interface
Automobile Industry in India
Introduction
India represents one of the world‘s largest automobile industries. Easy availability
of finance and rising income levels are encouraging the middle class population to
upgrade their two wheelers to a car. Besides, the growing organized used car
market has also been a positive growth factor in the used car market of the country.
Driven by the above factors, the used cars market is anticipated to grow at a
compound annual growth rate (CAGR) of 16 per cent during 2013–17, highlighted
the RNCOS report titled, ‗Booming Used Car Market in India Outlook 2017‘.
India is quietly becoming a production hub of high-end vehicles meant for export
to China. The US-based motorbike maker Harley Davidson, Austrian motorcycle
manufacturer KTM and Mahindra & Mahindra have also preferred to set up
manufacturing facilities in India than in the relatively low-cost China and export
the output.
Furthermore, India is set to become Mercedes Benz‘s fastest-growing market

worldwide ahead of China, the US and Europe, according to internal projections.
We expect growth rates to be the fastest in India globally, and expect sales to move
up by 10 per cent over the next five years or so, as per Mr Matthias Luhrs, Vice-
President (Global Sales), Mercedes Benz Cars.

Key Statistics
The passenger vehicles production in India touched 3.23 million units in 2012–13
and is expected to reach 10 million units by 2020–21. The industry is estimated to
grow at a CAGR of 13 per cent during 2012–2021. In addition, the industry
recorded exports worth US$ 9.3 billion in 2012–13 and is projected to touch US$
30 billion by 2020–21, according to data from Automotive Component
Manufacturers‘ Association (ACMA).
The cumulative foreign direct investment (FDI) inflows into the Indian automobile
industry during April 2000 to October 2013 was recorded at US$ 9,079 million,
amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data
published by Department of Industrial Policy and Promotion (DIPP), Ministry of
Commerce, Government of India.
India is also expected to emerge as a centre for producing compact superbikes as

Indian customer‘s progress to the next level of biking. Several global and Indian
bike makers plan to utilize India's mass-production base of 16 million two-
wheelers to roll out sports bikes in the 250 cc capacity.
More so, the demand for premium sports utility vehicles (SUVs) will continue to
grow. The market size of premium SUVs was estimated to be around 25,000 units
annually in India.
Major Developments & Investments
 Tata Motors Ltd plans to invest about £30 million (US$ 49.17 million) in the
National Automotive Innovation Campus (NAIC) for research and
development (R&D). The investment would be made through its subsidiary
Tata Motors European Technical Centre (TMETC) at the University of
Warwick campus, UK.
 Volvo India Pvt. Ltd plans to set up truck and bus manufacturing facility in
Malur, Karnataka, with an investment of Rs 974 crore (US$ 158.32 million).
The facility is expected to give employment to about 2,125 people.
 Manufacturing companies in Japan continue to view India as the top

destination for investments—over China, Thailand, Vietnam, Brazil and

Indonesia—in the next three years, according to Mr. Masanori Nakano,
Consul General of Japan in Chennai.
 Tata Motors-owned Jaguar Land Rover (JLR) has entered into an agreement
with the state of Rio de Janeiro to build a manufacturing plant in Brazil with
an investment of Rs 4,626 cro (US$ 751.95 million).
 JBM Auto has formed a joint venture (JV) with Italian bus maker Breda
Menarinibus to manufacture luxury buses in India. The Indo–Italian venture
plans to set up a plant at Kosi, near Faridabad in Haryana, and produce 2,000
buses every year initially, at an investment of Rs 500 crore (US$ 81.27
million).
 Mahindra & Mahindra (M&M) plans to develop the world's first hybrid
technology that can be deployed in vehicles with manual transmission and
enhance fuel efficiency by almost 20 per cent.

CHAPTER-2
RESEARCH DESIGN

Research meaning
Research means search of knowledge. It can be also define as a scientific
and systematic search for pertinent information on a specific topic. In fact research
is an art of scientific investigation. The advanced learner‘s dictionary of current
English lays down the meaning of research as ―a careful investigation or inquiry
especially through search for new facts in any branch knowledge‖.
Research methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is done
systematically. The research study consists of various steps generally adopted by a
researcher in studying research problem along with the logic behind them. It is
necessary for the researcher to know not only the research methods or techniques,
but also the methodology.
Definition Research Design

A research design is a plan that specifies the sources and types of
information relevant to the research problem. It is a strategy specifying which
approach will be used for gathering and analyzing the data. A research design
provides a rational approach to research enabling one to decide in advance what to
do, how to do, when to do, in investigating the subject. It enables the researcher to
carry out the project within the given time, available means and manpower of
achievement of the objectives. The research design is simply a specific
presentation of the various steps in the process of research. Design means adopting
that of techniques of research which is most suited for the research and study of the
problem. By preparing a design the research can collect relevant information with
minimum expenses and minimum time. The research design depends on the
research purpose.

Meaning of Questionnaire
Questionnaire is a list of questions or statement pertaining to an issue or

program. It is used for studying the opinions of people. It is commonly used in
opinion polls. People are asked to express their responses to the listed or reactions
to the listed statement.
Characteristics of a good questionnaire
 The purpose, objective and scope of the questionnaire in particular and the
study as a whole in general must be clearly identified and specified.
 Personal details like names, sex, age, educational level, etc., which are
closely related to the basic aspects of the study should have a proper place
in the questionnaire.
 The questions must be easily understandable, clearly presented, and simple
and brief in appearance.
 Predetermined and well planned answers can be provided through leading
questions should be avoided.
Meaning of Sampling
Sampling is simply the process of learning about the population on the basis
of a sample drawn from it. Thus, in the sampling technique instead of every unit of
the universe only a part of the universe is studies and the conclusion are drawn on
that basis for the entire universe.
Method of sampling
1. Random sampling or probability sampling

 Simple random sampling
 Stratified random sampling
 Systematic sampling
 Cluster sampling
 Sequential sampling
 Multi stage sampling
2. Non-random, non-probability sampling
 Quota sampling
 Convenience sampling
 On-the-spot sampling
Title of the Study

A study of, ―SALES PROMOTION‖ with respect to ―VPRO AUTO
PRODUCT COMAPANY‖
Statement of the Problem

Sales promotion is one of the measure tools for increasing the sales volume
for a short period of time.
Sales promotion includes discount, coupons offers, buy one get one free offers, gift
offers, sampling, etc. this tools will helps the company to increase market share
and bearing in more awareness to the customer about their product.
Hence, my study will find out the ―SALES PROMOTION‖ activity and it is
effect with reference to that company.
Objectives of the study

 To understand sales promotion of Vpro company.
 To analyses sales promotion activity of Vpro company against its
competitors.
 To attract new company.
 To maintains exiting customer.
 To maintains goodwill of Vpro Company.

Scope of the study

The study analyzes the sales promotion activities of Vpro in comparison to its
competitors and also explores the ways of retaining its existing customers and on
how to attract new customers. The study will be conducted on the existing and
potential customers.
Methodology of the data

The methodology involves collection of data from primary and secondary
sources. The data so collected is subjected to analysis using the necessary tools that
are relevant. Inferences are drawn incorporating both quantitative and qualitative
data are available at the researcher‘s disposal. Based upon the inferences,
conclusions are drawn and recommendations are made to enhance the study on
sales promotion of Vpro auto Product Company.
In the study, questioners and direct interviews are used as a medium of data
collection. Tables, charts, graphs are used for data analysis.
Types of research and tools for data collection

The data relevant to the study was collected through primary and secondary
data.
 PRIMARY DATA was collected through the discussion with the dealers,
customers, and fleet owners.
 SECONDARY DATA was collected from text books, magazines, internet
and libraries and through the records of the company.

Data analysis
The primary and the secondary data have been analyzed with the
information received. Feedbacks from the questioners are used to analyses the data.
Reference period
The reference period is of the one month that is from 17 th February 2014 to
18th march 2014.
Limitation of the study

 The scope of the study is limited to the dealer and consumers of Bangalore
(Karnataka). Thus confined to this city only and is not universal applicable.
 Sometimes the consumer does not reveal the correct information so biases
come.
 People do not like to waste times in giving the reply.
 Human error factor is always involved as a basis limitation in study.
 The result determined by the survey is of the selected respondents based on
the information given by the prospect.

CHAPTER 3
INDUSTRY AND COMPANY PROFILE

History of Vpro auto product
―Vpro Auto Product‖ partnership firm a firm was commissioned in the year
2009. Vpro auto products is located at 113/2 9 th cross, doddanna industrial estate,
near peenya 2nd stage, Bangalore-91.
Vpro company manufacture DC electric horns suitable for automobiles such as

cars, jeep, LCVs, HCVs, auto rickshaws, trucks, tractor, motor cycle and scooters
in wide ranges of visual appeal, fitment and operating voltages.
The manufacturing facility comprises of press shop, assembly and testing facilities
backed up by design and development. About 8 dedicated and skilled associates
from our workforce and are supported by good ancillary support for rubber, plastic
and metal components. Substantial portion of VPRO auto products business is for
branding of different types of vehicle manufacturers as stated above, apart from the
open market. Vpro auto product has a network of distribution outlets spread all
over the company.
With the objectives of meeting customer‘s requirements consistently, now QMS is

being implemented as per ISO 9001:2008
Vpro auto product is committed to provide consistent quality of products and

service, which meets the customer requirement. This commitment is fulfilled
through continuous improvement efforts and cost-effective measures in every
functional area.
Infrastructure
Company infrastructure is set up 8000 sq ft area. The investment comprising

of 4, 8 and tone hydro pneumatic presses, contract riveting, closed horn testing
chamber, power press etc., and other basic facilities required. Additional
investments are planned based on the requirements for further expansion. The
critical components are manufactured in house to ensure quality assurance of the
component. Company has current production capacity of 50,000 horns/ month and
will be expended based on the requirement time to time. The robust design of tools

with pokayoke, right sources of raw material, process will result in the better
component and finally the product.
Production and Quality
Work experience of more than 15 years in similar industry has worked in

various capacities from quality, design and production. And every horn is tested in
a closed chamber monitored with frequency meter, voltmeter, and ammeter with
high, low and normal working voltage range as per standards.
Digitally monitored test chamber to check the life of the horn as per IS 1884: 1993
standards. Quality of the product is monitored at each stage of production and on
life inspection, set up approvals, display of limit samples. Etc.
Performance
Currently company is manufacturing 75 dia & 92 dia horns for the

aftermarket requirement in both AC/DC 12V and 24V.
75 dia horns with different brackets suitable for hero Honda, kinetic Honda, Honda
activa, TVS victor, TVS Suzuki, TVS XL, BAJAJ pulsar, BAJAJ auto rickshaw‘s
and AC/DC horns.
92 dia repairable type horns suitable for 12V and 24V battery vehicles.
Objectives of company
 Customer service improvement

 To Increase in productivity
 Minimize the production cost
 To reduce internal rejection
 To enhance customer satisfaction
 To reduce customer complaint.
 Reliability.
 To provide timely delivery

Product profile
This horn is suitable in two wheeler like

hero Honda, kinetic Honda, Honda active
and Suzuki etc.
Thise product suitable in

only tractor.. the voltage
capacity is 12v, current (A)
is 3.0 A Max and sound
level (dB A) 110 +- 20 hz.

People use melody maker

in two wheeler to making
different sound in the vehicles. It is suitable for all 12V battery vehicles.
Mini Vibro in suitable for

four wheeler vehicles and
12V/6V battery vehicles.
Under these horn volts (V)
capacity is 12v/6v, current (A) 3.0 a max and sound level (dB A) is 110 +- 3

These horn suitable

only in BAJAJ pulsar
all model. And they are
two types of horns one
is positive and another
is negative. Each horn
has a capacity of 12
volts, current (A) is 3.0
A Max, and sound level
(dB A) is 110 +- 3 dB.
This type of horn suitable for

super XL, scooty and Suzuki etc.
it is also suitable for three
wheeler like auto rickshaw. This
horn has a product like a
condenser. And voltage capacity
is 12 V alter current and direct
current, current (A) 2.2 a max and
sound level capacity (dB A) is
108 +- 5 dB.

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

Analysis and Interpretation
1. Present Fitment:
Sample size 50 customer
Vpro 4
Roots 28
Bosch 8
Minda 6
Varroc 4
Present Fitment
60%
50%
40%
30%
20%
10%
0%
Vpro Roots Bosch Minda Varroc
Interpretation: Studying the questionnaire of 50 customers it was found that 8%

of the customers were using Vpro, 55% were using Roots, 15% were using
Bosch, 12% were using Minda and 10% were using Varroc.
Inference: The majority of customers prefer Roots. A small portion of them prefer
Vpro.

2. Awareness of the Vpro as a brand:

Sample size 50 customers
Aware 18
Unaware 32
Level of Awareness
Aware Unaware
35%
65%
Interpretation: studying the questionnaire of 50 customers it was found that 35%

were Aware of Vpro as a brand and that 65% of them were Unaware of it.
Inference: most of the customers are not aware of Vpro as a brand.

3. Sources of information gathered before purchasing:

Sources Customers
TV Commercial 0
Newspaper 17
Friend 26
References 7
Internet 0
sources
TV Commercial newspaper Friends References internet
0%
14%
33%
53%
Interpretation:
Studying the questionnaire of 50 customers it found that 53% gathered

information from Friends before purchasing where as 0% from TV Commercials,
14% from References, 33% from Newspaper and 0% from Internet.
Inference:
Most of customers gathered information from friends before purchasing a Vpro

product.

4. Quality of Vpro product with reference to dealer:
Sample size 15 dealers
Quality Customers
Very Good 6
Good 6
Satisfactory 3
Poor -
Poor
Satisfactory 0%
20%
Very Good
40%
Good
40%
Interpretation: Studying the questionnaire of 15 dealers it was found that 40%

dealers found the quality is very good, 40% dealers found it to be good and 20%
dealers found it to be satisfactory.
Inference: Most of the dealers are highly satisfied with the product but some of
them were reasonably happy with the product. Only a handful of them were less
satisfied with the product.

5. Number of Vpro Dealers according to the sample size:
status Dealers
Dealer 5
Non Dealer 10
Dealer Non Dealer
32%
68%

were Dealers and 68% were Non Dealers
Inference: Majority of respondents are not dealing with the product manufactured
by Vpro Company. Only some deal with the company product.

6. Dealers opinion of the sales promotional activities given by Vpro

product:
Sample size 15 dealer
Sales Promotional Activities Dealers

Very good 1
Good 8
Satisfactory 4
Poor 2
Very good
7%
Poor
13%
Satisfactory
27%
Good
53%

dealers found the sales Promotional activities to be very good, 53% found it to
be good, 27% found it to be satisfactory and remaining 13% found it to be poor.
Inference: More than half of the respondents found the sales promotion done by
Vpro Company is good while some of them found it satisfactory.

7. Dealers opinion about credit period given by Vpro:
Credit Period Dealers

Very Good 4
Good 5
Satisfactory 3
Poor 3
Poor
20% Very Good
27%
Satisfactory
20%
Good
33%

dealers founds the Credit Period is very good, 33% found it to be Good where as
20% found it to be satisfactory and 20% found it to be poor.
Inference: Majority of the respondents found the credit period given by Vpro is
good while equal number of respondents gave the feedback as satisfactory and
poor

8. Dealers opinion of the price of Vpro product:
Sample size 15 Dealers
Price Dealers
Very High 3
High 6
Average 6
Low -
low
0% Very High
20%
Average
40%
High
40%
Interpretation: Studying the questionnaire of 15 Dealers it was found that 20%

found the Price to be Very High, 40% found it to be high and the remaining 40%
found it to be average.
Inference: Equal number of respondents found the price of Vpro product high as
well as average. And the remaining felt the price is very high.

9. Dealers opinion of the promotional factory they expect from Vpro:
Factors Dealers
Promotional Scheme 8
Sales Follow-up 4
Service 2
Credit Facility 1
Percentage
60%
50%
40%
30%
Percentage
20%
10%
0%
Promotional Scheme Sales Follow-up Service Credit Facility

wants the company to have promotional scheme, 25% wanted to have sales
follow-up, 13% wanted service and 9% wanted credit facility.
Inference: Most of the respondents expect a great promotional scheme from Vpro
to promote their products.

10. Expectation in a using a horn:

Advantage Important Neutral Not Important
Sound Level 15 20 15
Brand 16 27 7
Price 32 10 8
important neutral not important

65%
54%
40%
30% 30% 32%
20%
14% 15%
sound level price brand
Interpretation: Studying the questionnaire of 50 customers
Sound level: 40% of customers are neutral for sound level
Price: 54% of customers are neutral for price.
Brand: 65% of customers are important for brand.
Inference: Majority of the respondents are having a mixed opinion on sound level
of the horns, More than half of respondents also gave a mixed response on price of
the product and Most of the respondents feel the brand image is very much
essential in decision making process of customer.

11. Sales promotion activity

Sales promotion activity Customers
discount 35
Gift 3
Coupons 5
offers 7
sales promotion activity
offers
15%
coupons
10%
gift discount
5% 70%
Interpretation: Studying the questionnaire of 50 customers it was found that

70% liked discount, 5% liked gift, 10% liked coupons and 15% customers liked
other offers.
Inference: Most of the customer expects a discount on the price of the product
among other sales promotion activity.

CHAPTER 5
FINDINGS AND SUGGESTIONS

Findings
 Buying process in mostly through word of mouth

Communication.
 Customers are more concerned with the quality than the brand.
 Credit period (3 months) given by Vpro is good as per the dealer.
 Dealer expects more of sales promotional activities and good service
from the company
 The company does not use online and tele. Promotional activities.
 Customer like discount offers.
 Many customers do not know about company as it is 5 years old
company.
 The awareness a about the product is very less among people as most of
the product are recently launched.

Suggestions
 It is suggested that the company should increase their advertising, newspaper

and sales promotion like discount offer, coupons etc.
 The company should also find out ways to decrease their price so that they
can compete with its competitors.
 They should give more sales promotional service to the dealers so that they
are happy with the company and ultimately boost up the sales.
 The company should all so focus Original equipment (OE) fitments because
it has a downward trend in the past years.
 It is also suggested that the company should arrange awareness programs
regarding horns so that customers can know about it and can buy it on the
next purchases.

Conclusion
From the study conducted it can be concluded that the sales promotional activity of
Vpro Company is minimal in the market as the company came into existence
around 4 years ago. Customer are not aware of sales promotional activity,
company should try to advertise about its product and also sales promotion activity
in order to increase sales volume. The recommendations have been conveyed to the
company.

Questionnaire

QUESTIONNAIRE
Name:
1. Which company horn you are using for your vehicles.
Roots Minda
Vpro Bosch
Varroc
2. Which is your priority while purchasing a new horn? (rank them)
Price Quality Brand name
Durability feature comfort
3. What advantages you expect from using a particular horn.

Advantage Important Neutral Not Important
Sound Level
Brand
Price
4. Do you seek information before making purchases?

Yes No

5. If yes, from where you gather your information.

TV advertising News paper
Friends Reference
Internet Any other (specify)
6. Have you heard about Vpro horn?

Yes No
7. How would you rank the Vpro horn?

Very Good Good Satisfactory Poor
Price
Quality
Sound
8. How do you compare Vpro with its competitors?

Excellent Good
Ok Poor
9. Have you seen the Vpro advertising?

Yes No

10.If yes, from where.

TV Magazine
Newspaper hoarding
Wall Painting
11.What type of sales promotional activity do you prefer with Vpro Product?
Discount Gift
Coupons Offers
12.What do you think about sales promotion activity given by Vpro?

Very Good Good
Satisfactory Poor
13.What are the factors that you expect from Vpro to promote their products?
Promotional scheme sales follow-up
Service Credit Facility
14.Which factor enables you to be the dealer of Vpro product?

Promotional scheme Quality
Company policy Margin

15.How long you are dealing with Vpro product?

1-2 years 2-3 years
3-4 years above 4 years
16.What do you feel about Quality of Vpro product?

Very Good Good
Satisfactory Poor
17.What do you feel about credit period given by Vpro?

Very Good Good
Satisfactory Poor
18.What do you feel about the price of Vpro product?

Very High High
Average Low
19.Are you dealing with other companies?

Yes No
If yes, specify

20.Do you any complaints about Vpro product?

Yes No
If yes specify,
21.Do you any suggestion to improve the quality of Vpro product?

Yes No
If yes, specify,
22.What do you feel about after sales service given by Vpro?

Highly satisfied Satisfied
Moderate Dissatisfied

BIBLIOGRAPHY

BIBLIOGRAPHY
BOOK REFERRED:
Marketing Research Measurements & Method by Donald S. Tull and Del I.

Hawkins
WEBSITE REFERRED
 www.wikipedia.org
 www.automobileindustry.com
 www.hornindusty.com

Chapter-1: A Study On Sales Promotion

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter-1: A Study On Sales Promotion

Uploaded by

Copyright:

Available Formats

A Study on Sales Promotion

S.R.N ADARSH COLLEGE Page 1

1. Mass impersonal selling methods (Advertising).

2. Face to face personal selling (Salesman ship).

Promotion and Sales Promotion

S.R.N ADARSH COLLEGE Page 2

According. To A.H.R. Delons:-

According. to W.Q. Kelly Opines:-

Sales Promotion and Advertising

There is no universally accepted distribution between these two terms. To same

Sales promotion is concerned with the creation. Application and dissemination of

S.R.N ADARSH COLLEGE Page 3

Objective of Sales Promotion

 To increase sales directly by publicity through media which are

Sales Promotional at different levels

1. Sales promotion at Dealers Level:-

It may include various schemes some of which are discussed here.

(i) Advertising Materials:-

(ii) Store Demonstration:-

S.R.N ADARSH COLLEGE Page 4

(iii) Special Display and Shows:-

These are in seasonal in character but could be arranged in an elaborate manner

Sales promotion at consumer’s level

The various schemes of sale promotion at Consumer‘s Level may include.

1. Coupons (A Chit of Stated Value) :-

2. Price-off-offer (Also known as bargain offer price packs) :-

S.R.N ADARSH COLLEGE Page 5

In the hope of converting a prospect into a customer a sample (Some quantity of

4. Money Refund Offer:-

S.R.N ADARSH COLLEGE Page 6

There are various forms of premiums provided by the manufacturer as sales

(a) Coupons are supplied for effecting price reductions.

(c) Self Liquidating Premiums:-

S.R.N ADARSH COLLEGE Page 7

Other Steps by Manufacturer for Promoting Sales

Dealers can be helps in different ways:-

1. Communicating Market News:-

2. Inviting to Sales Conference and Convention:-

3. Offering Reasonable Terms of Sale:-

Of all the forms of encouragement, the monetary incentive evokes immediate

4. Supplying suitable packages and useful things.

5. By taking the return back.

6. By furnishing them with sales literature and display materials.

S.R.N ADARSH COLLEGE Page 8

Aggressive Selling and Defensive Selling:-

1. New customers if the market is expending.

S.R.N ADARSH COLLEGE Page 9

When Aggressive selling is resorted?

Usually manufacturer of a new product has to do aggressive selling:-

1. When the product has been improved.

2. When the manufacturer‘s product is supervisor in quality to the product of the

4. If the manufacturer‘s share of the market is comparatively small.

5. If the manufacturer has unused production capacity with heavy investment in

Method of Aggressive Selling:-

S.R.N ADARSH COLLEGE Page 10

(a) Cash Allowance:-

A definite percentage of discounts are allowed on the purchase of given unit of a

(b) Extra Product:-

Various gifts are awarded in return for an order of a particular magnitude.

A coupon of a giving value is sent to the consumer. By presenting this coupon to

(b) Self Liquidating Offers:-

S.R.N ADARSH COLLEGE Page 11