Department of Management Studies

BACHELOR OF BUSINESS ADMINISTRATION:

A Summer Internship Report on

“SALES AND PROMOTION OF HONDA CARS”

Submitted in Partial Fulfillment of the

Requirement for the Degree of
Bachelor of Business Administration

Submitted by:

Student Name: Nitya Bhardwaj

Enrolment Number: GE-21243779

Semester: 5th sem

Name: Ms. Anupama
Professor, Dept. of Management Studies

GUIDE CERTIFICATE

This is to certify that the topic entitled “SALES AND PROMOTION OF HONDA
CARS” is a record of research work carried out by Nitya Bhardwaj , during the
period of his study under my guidance and supervision. The Research Project
Report has reached the standard of fulfilling the requirements of the regulations
relating to the Bachelor of Business Administration (BBA) degree at Graphic Era
(Deemed to be) University.

Place: Dehradun Signature of Guide

Date: (Ms. Anupama)

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 ACKNOWLEDGEMENT

Words are indeed inadequate to convey my deep sense of gratitude to all those who have
helped me in completing this Internship report to the best of my ability. Being a part of
this project has certainly been a unique and a very productive experience on my part.

I am really thankful to Ms. Anupama for making all kinds of arrangements to carry the
project successfully and for guiding and helping me to solve all kinds of quarries
regarding the project work. Her systematic way of working and incomparable guidance
has inspired the pace of the project to a great extent.

I would also like to thank my mentor and project – coordinator for assigning me a project
of such a great learning experience and acquainting me with real life project financing
and appraisal.

NITYA BHARDWAJ

BBA

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 TABLE OF CONTENTS

CHAPTER NO. PARTICULARS

CHAPTER 1 INTRODUCTION

CHAPTER 2 COMPANY PROFILE

CHAPTER 3 RESEARCH METHODOLOGY

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

CHAPTER 5 FINDINGS,CONCLUSION &

RECOMMENDATION

CHAPTER 6 BIBLIOGRAPHY

QUESTIONARIES

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 CHAPTER-1
INTRODUCTION

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 INTRODUCTION

Sales Promotion

Sales promotion - Short-term incentives to encourage the purchase or sale of a product or

service.

Sales promotion describes promotional methods using special short-term techniques to

persuade members of a target market to respond or undertake certain activity. As a
reward, marketers offer something of value to those responding generally in the form of
lower cost of ownership for a purchased product (e.g., lower purchase price, money back)
or the inclusion of additional value-added material (e.g., something more for the same
price).

Sales promotions are often confused with advertising. For instance, a television
advertisement mentioning a contest awarding winners with a free trip to a Caribbean
island may give the contest the appearance of advertising. While the delivery of the
marketer’s message through television media is certainly labeled as advertising, what is
contained in the message, namely the contest, is considered a sales promotion. The
factors that distinguish between the two promotional approaches are:

 Whether the promotion involves a short-term value proposition (e.g., the contest is
only offered for a limited period of time), and
 The customer must perform some activity in order to be eligible to receive the value
proposition (e.g., customer must enter contest).

The inclusion of a timing constraint and an activity requirement are hallmarks of sales
promotion.

Sales promotions are used by a wide range of organizations in both the consumer and
business markets, though the frequency and spending levels are much greater for
consumer products marketers. One estimate by the Promotion Marketing Association
suggests that in the US alone spending on sales promotion exceeds that of advertising.

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Sales promotion is a tool used to achieve most of the five major promotional
objectives:-

1. 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
product introduction.

Additionally, as part of the effort to build product awareness, several sales promotion
techniques possess the added advantage of capturing customer information at the time of
exposure to the promotion. In this way sales promotion can act as an effective customer
information gathering tool (i.e., sales lead generation), which can then be used as part of
follow-up marketing efforts.

2. Creating Interest:
Marketers find that sales promotions are very effective in creating interest in a product.
In fact, creating interest is often considered the most important use of sales promotion. In
the retail industry an appealing sales promotions can significantly increase customer
traffic to retail outlets.

Internet marketers can use Carilar approaches to bolster the number of website visitors.
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.

3. Providing Information:
Generally sales promotion techniques are designed to move customers to some action and
are rarely Carply informational in nature. However, some sales promotions do offer
customers access to product information. For instance, a promotion may allow customers
to try a fee-based online service for free for several days. This free access may include
receiving product information via email.

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4. Stimulating Demand:
Next to building initial product awareness, 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.

5. Reinforcing the Brand:

Once customers have made a purchase sales promotion can be used to both encourage
additional purchasing and also as a reward for purchase loyalty (see loyalty programs
below). Many companies, including airlines and retail stores, reward good or “preferred”
customers with special promotions, such as email “special deals” and surprise price
reductions at the cash register.

Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers
to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial,
or purchase. Examples of devices used in sales promotion include coupons, samples,
premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

Sales Promotion Strategies

There are three types of sales promotion strategies:

1. Push 2. Pull 3. Combination of push &pull.

1. A push strategy involves convincing trade intermediary channel members to "push"

the product through the distribution channels to the ultimate consumer via promotions and
personal selling efforts. The company promotes the product through a reseller who in turn
promotes it to yet another reseller or the final consumer. Trade-promotion objectives are
to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a
brand in advertising, and/or push a brand to final consumers. Typical tactics employed in
push strategy are: allowances, buy-back guarantees, free trials, contests, specialty
advertising items, discounts, displays, and premiums.

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2. A pull strategy attempts to get consumers to "pull" the product from the manufacturer
through the marketing channel. The company focuses its marketing communications
efforts on consumers in the hope that it stimulates interest and demand for the product at
the end-user level. This strategy is often employed if distributors are reluctant to carry a
product because it gets as many consumers as possible to go to retail outlets and request
the product, thus pulling it through the channel. Consumer-promotion objectives are to
entice consumers to try a new product, lure customers away from competitors’ products,
get consumers to "load up" on a mature product, hold & reward loyal customers, and
build consumer relationships. Typical tactics employed in pull strategy are: samples,
coupons, cash refunds and rebates, premiums, advertising specialties, loyalty
programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP)
displays.

3. Car dealers often provide a good example of a combination strategy. If you pay
attention to car dealers' advertising, you will often hear them speak of cash-back offers
and dealer incentives.

Tools of Sales Promotion are:-

 Coupons
 Discounts
 Contest
 Point of purchase displays
 Rebates
 Free Samples (in the case of food items)
 Gifts and incentive items
 Free travel, such as free flights

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  Sales promotions targeted at the consumer are called consumer sales
promotions. Sales promotions targeted at retailers and wholesale are called trade
sales promotions.

Sales Promotion Techniques

Consumer sales Promotions.

Sales promotions targeted at the consumer are called consumer sales promotions.

Trade Sales Promotions.

Sales promotions targeted at retailers and wholesale are called trade sales promotions.

Consumer sales promotion techniques:

 Price deal: A temporary reduction in the price, such as happy hour.
 Loyalty rewards program: Consumers collect points, miles, or credits for purchases
and redeem them for rewards. Two famous examples are Pepsi stuff Cents-off deal:
Offers a brand at a lower price. Price reduction may be a percentage marked on the
package.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
 Coupons: coupons have become a standard mechanism for sales promotions.
 Loss leader: the price of a popular product is temporarily reduced in order to
stimulate other profitable sales
 Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
 On-shelf couponing: Coupons are present at the shelf where the product is available.
 Checkout dispensers: On checkout the customer is given a coupon based on products
purchased.
 On-line couponing: Coupons are available on line. Consumers print them out and take
them to the store.
 Mobile couponing: Coupons are available on a mobile phone. Consumers show the
offer on a mobile phone to a salesperson for redemption.

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 Online interactive promotion game: Consumers play an interactive game associated
with the promoted product. See an example of the Interactive Internet Ad for tomato
ketchup.
 Rebate: Consumers are offered money back if the receipt and Barcode are mailed to
the producer.
 Contests/sweepstakes/games: The consumer is automatically entered into the event by
purchasing the product.
 Point-of-sale displays
Trade sales promotion techniques:
 Trade allowances: short term incentive offered to induce a retailer to stock up on a
product.
 Dealer loader: An incentive given to induce a retailer to purchase and display a
product.
 Trade contest: A contest to reward retailers that sell the most product.
 Point-of-purchase displays: Extra sales tools given to retailers to boost sales.
 Training programs: dealer employees are trained in selling the product.
 Push money: also known as "spiffs". An extra commission paid to retail employees to
push products.

Types of Sales Promotion

Sales promotion can be classified based on the primary target audience to whom the
promotion is directed. These include:

1. Consumer Sales Promotion

Consumer sales promotions encompass a variety of short-term promotional techniques
designed to induce customers to respond in some way. The most popular consumer sales
promotions are directly associated with product purchasing. These promotions are
intended to enhance the value of a product purchase by either reducing the overall cost of
the product (i.e., get same product but for less money) or by adding more benefit to the
regular purchase price (i.e., get more for the money).

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While tying a promotion to an immediate purchase is a major use of consumer sales
promotion, it is not the only one. As we noted above, promotion techniques can be used
to achieve other objectives such as building brand loyalty or creating product awareness.
Consequently, a marketer’s promotional toolbox contains a large variety of consumer
promotions.

Next we discuss the following 11 types of consumer sales promotions:

 Coupons
 Rebates
 Promotional Pricing
 Trade-In
 Loyalty Programs
 Sampling and Free Trials
 Free Product
 Premiums
 Contests and Sweepstakes
 Demonstrations
 Personal Appearances

Coupons:
Most consumers are quite familiar with this form of sales promotion, which offers
purchasers price savings or other incentives when the coupon is redeemed at the time of
purchase. Coupons are short-term in nature since most (but not all) carry an expiration
date after which the value may not be received. Also, coupons require consumer
involvement in order for value to be realized. In most cases involvement consists of the
consumer making an effort to obtain the coupon (e.g., clip from newspaper) and then
presenting it at the time of purchase.
Coupons are used widely by marketers across many retail industries and reach consumers
in a number of different delivery formats including:

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 Free-Standing Inserts (FSI) – Here coupon placement occurs loosely (i.e., inserted)
within media, such as newspapers and direct mail, and may or may not require the
customer to cut away from other material in order to use.
 Cross-Product – These consist of coupons placed within or on other products. Often
a marketer will use this method to promote one product by placing the coupon inside
another major selling product. For example, a pharmaceutical company may imprint
a coupon for a cough remedy on the box of a pain medication. Also, this delivery
approach is used when two marketers have struck a cross promotion arrangement
where each agrees to undertake certain marketing activity for the other.
 Printout – A delivery method that is common in many food stores is to present
coupons to a customer at the conclusion of the purchasing process. These coupons,
which are often printed on the spot, are intended to be used for a future purchase and
not for the current purchase which triggered the printing.
 Product Display – Some coupons are nearly impossible for customers to miss as they
are located in close proximity to the product. In some instances coupons may be
contained within a coupon dispenser fastened to the shelf holding the product while in
other cases coupons may be attached to a special display (see POP display below)
where customers can remove them (e.g., tear off).
 Internet – Several specialized websites, such as HotCoupons.com, and even some
manufacturer’s sites, allow customers to print out coupons. These coupons are often
the same ones appearing in other media, such as newspapers or direct mail. In other
cases, coupons may be sent via email, though to be effective the customer’s email
program must be able to receive HTML email (and not text only) in order to maintain
required design elements (e.g., bar code).
 Electronic – The Internet is also seeing the emergence of new non-printable coupons
redeemable through website purchases. These electronic coupons are redeemed when
the customer enters a designated coupon code during the purchase process.

Rebates:
Rebates, like coupons, offer value to purchasers typically by lowering the customer’s
final cost for acquiring the product. While rebates share some Carilarities with coupons,
they differ in several keys aspects. First, rebates are generally handed or offered (e.g.,
accessible on the Internet) to customers after a purchase is made and cannot be used to

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obtain immediate savings in the way coupons are used. (So called “instant rebates”,
where customers receive price reductions at the time of purchase, have elements of both
coupons and rebates, but for our purposes we will classify these as coupons due to the
timing of the reward to the customer).

Second, rebates often request the purchaser to submit personal data in order to obtain the
rebate. For instance, customer identification, including name, address and contact
information, is generally required to obtain a rebate. Also, the marketer may ask those
seeking a rebate to provide additional data such as indicating the reason for making the
purchase.
Third, unlike coupons that always offer value when used in a purchase (assuming it is
accepted by the retailer), receiving a rebate only guarantees value if the customer takes
actions. Marketers know that not all customers will respond to a rebate. Some will
misplace or forget to submit the rebate while others may submit after a required deadline.
Marketers factor in the non-redemption rate as they attempt to calculate the cost of the
rebate promotion.

Finally, rebates tend to be used as a value enhancement in higher priced products

compared to coupons. For instance, rebates are a popular promotion for automobiles and
computer software where large amounts of money may be returned to the customer.

Promotional Pricing:
One of the most powerful sales promotion techniques is the short-term price reduction or,
as known in some areas, “on sale” pricing. Lowering a product’s selling price can have an
immediate impact on demand, though marketers must exercise caution since the frequent
use of this technique can lead customers to anticipate the reduction and, consequently,
withhold purchase until the price reduction occurs again.

As we will see in a later tutorial, promotional pricing is also considered within the
framework of the Price marketing mix component. More on of this technique will be
provided in that discussion.

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Trade-In:
Trade-in promotions allow consumers to obtain lower prices by exchanging something
the customer possess, such as an older product that the new purchase will replace. While
the idea of gaining price breaks for trading in another product is most frequently seen
with automobile sales, such promotions are used in other industries, such as computers
and golf equipment, where the customer’s exchanged product can be resold by the
marketer in order to extract value.

Loyalty Programs:
Promotions that offer customers a reward, such as price discounts and free products, for
frequent purchasing or other activity are called loyalty programs. These promotions have
been around for many years but grew rapidly in popularity when introduced in the airline
industry as part of frequent-filer programs. Loyalty programs are also found in numerous
other industries, including grocery, pizza purchasing and online book purchases, where
they may also be known as club card programs since members often must use a
verification card as evidence of enrollment in the program.
Many loyalty programs have become ingrained as part of the value offered by a
marketer. That is, a retailer or marketing organization may offer loyalty programs as
general business practice. Under this condition loyalty program does not qualify as a
sales promotion since it does not fit the requirement of offering a short-term value (i.e., it
is always offered). However, within a general business practice loyalty program a sales
promotion can be offered, such as special short-term offer that lowers the number of
points needed to acquire a free product.

Sampling and Free Trials:

Enticing members of a target market to try a product is often easy when the trial comes at
little or no cost to the customer. The use of samples and free trials may be the oldest of
all sales promotion techniques dating back to when society advanced from a culture of
self-subsistence to a culture of trade.
Sampling and free trials give customers the opportunity to experience products, often in
small quantities or for a short duration, without purchasing the product. Today, these
methods are used in almost all industries and are especially useful for getting customers
to try a product for the first time.

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Free Product:
Some promotional methods offer free products but with the condition that a purchase be
made. The free product may be in the form of additional quantities of the same purchased
product (e.g., buy one, get one free) or specialty packages (e.g., value pack) that offer
more quantity for the same price as regular packaging.
Premiums:
Another form of sales promotion involving free merchandise is premium or “give-away”
items. Premiums differ from samples and free product in that these often do not consist
of the actual product, though there is often some connection. For example, a cell phone
manufacturer may offer access to free downloadable ring tones for those purchasing a cell
phone.

Contests and Sweepstakes:

Consumers are often attracted to promotions where the potential value obtained is very
high. In these promotions only a few lucky consumers receive the value offered in the
promotion. Two types of promotions that offer high value are contests and sweepstakes.

Contests are special promotions awarding value to winners based on skills they
demonstrate compared to others. For instance, a baking company may offer free
vacations to winners of a baking contest. Contest award winners are often determined by
a panel of judges.

Sweepstakes or drawings are not skill based but rather based on luck. Winners are
determined by random selection. In some cases the chances of winning may be higher for
those who make a purchase if entry into the sweepstake occurs automatically when a
purchase is made. But in most cases, anyone is free to enter without the requirement to
make a purchase.

Demonstrations:
Many products benefit from customers being shown how products are used through a
demonstration. Whether the demonstration is experienced in-person or via video form,

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such as over the Internet, this promotional technique can produce highly effective results.
Unfortunately, demonstrations are very expensive to produce.

Costs involved in demonstrations include paying for the expense of the demonstrator,
which can be high if the demonstrator is well-known (e.g., nationally known chef), and
also paying for the space where the demonstration is given.
Personal Appearances:
An in-person appearance by someone of interest to the target market, such as an author,
sports figure or celebrity, is another form of sales promotion capable of generating
customer traffic to a physical location. However, as with demonstrations, personal
appearance promotion can be expensive since the marketer normally must pay a fee for
the person to appear.

2. Trade Sales Promotions:

Promotion Decisions, certain promotions can help “push” a product through the channel
by encouraging channel members to purchase and also promote the product to their
customers. For instance, a trade promotion aimed at retailers may encourage retailers to
instruct their employees to promote a marketer’s brand over competitors’ offerings. With
thousands of products competing for limited shelf space, spending on trade promotion is
nearly equal that spent on consumer promotions.

Many sales promotions aimed at building relationships with channel partners follow
Carilar designs as those directed to consumers including promotional pricing, contests
and free product. In addition to these, several other promotional approaches are
specifically designed to appeal to trade partners. These approaches include:

 Point-of-Purchase Displays
 Advertising Support Programs
 Short Term Allowances
 Sales Incentives or Push Money
 Promotional Products
 Trade Shows

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Point-of-Purchase Displays:
Points of purchase (POP) displays are specially designed materials intended for
placement in retail stores. These displays allow products to be prominently presented,
often in high traffic areas, and thereby increase the probability the product will standout.
POP displays come in many styles, though the most popular are ones allowing a product
to stand alone, such as in the middle of a store aisle or sit at the end of an aisle (i.e., end-
cap) where it will be exposed to heavy customer traffic.
For channel partners, POP displays can result in significant sales increases compared to
sales levels in a normal shelf position. Also, many marketers will lower the per-unit cost
of products in the POP display as an incentive for retailers to agree to include the display
in their stores.

Advertising Support Programs:

In addition to offering promotional support in the form of physical displays, marketers
can attract channel members’ interest by offering financial assistance in the form of
advertising money. These funds are often directed to retailers who then include the
company’s products in their advertising. In certain cases the marketer will offer to pay
the entire cost of advertising, but more often, the marketer offers partial support known as
co-op advertising funds.

Short Term Trade Allowances:

This promotion offers channel partners price breaks for agreeing to stock the product. In
most cases the allowance is not only given as encouragement to purchase the product but
also as an inducement to promote the product in other ways such as by offering attractive
shelf space or store location, highlighting the product in company-produced advertising or
website display, or by agreeing to have the retailer’s sales personnel “talk-up” the product
to customers.
Allowances can be in the form price reductions (a.k.a. off-invoice promotion) and buy-
back guarantees if the product does not sell in certain period of time.

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Sales Incentives or Push Money:
Since sales promotions are intended to stimulate activity that leads to meeting
promotional objectives, it makes sense that these can also apply to those in the
organization who also affect sales. Thus, sales promotions are commonplace among an
organization’s sales force and customer service staff where they are used as incentives to
help sell more of the marketer’s product. Sometimes called push money, these
promotions typically offer employees cash or prizes, such as trips, for those that meet
sales requirements.

Promotional Products:
Among the most widely used methods of sales promotions is the promotional product;
products labeled with the brand or company name that serve as reminders of the actual
product. For instance, companies often hand out free calendars, coffee cups and pens that
contain the product logo.

Trade Shows:
One final type of trade promotion is the industry trade show (a.k.a. exhibitions,
conventions). Trade shows are organized events that bring both industry buyers and
sellers together in one central location. Spending on trade shows is one of the highest of
all sales promotions. In fact, the Promotion Marketing Association estimates that over
(US) $20 billion is spent annually by marketers to participate in trade shows.
Marketers are attracted to trade shows since these offer the opportunity to reach a large
number of potential buyers in one convenient setting. At these events most sellers
attempt to capture the attention of buyers by setting up a display area to present their
product offerings and meet with potential customers. These displays can range from a
single table covering a small area to erecting specially built display booths that dominate
the trade show floor.

Business-to-Business Sales Promotions:

The use of sales promotion is not limited to consumer products marketing. In business-
to-business markets sales promotions are also used as a means of moving customers to
action. However, the promotional choices available to the B-to-B marketer are not as

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extensive as those found in the consumer or trade markets. For example, most B-to-B
marketers do not use coupons as a vehicle for sales promotion with the exception of
companies that sell to both consumer and business customers (e.g., products sold through
office supply retailers). Rather, the techniques more likely to be utilized include:
 Price-reductions
 Free product
 Trade-in
 Promotional products
 Trade shows

2.9.4 Trends in Sales Promotion

Marketers who employ sales promotion as a key component in their promotional strategy
should be aware of how the climate for these types of promotions is changing. The
important trends in sales promotion include:

Electronic Delivery:
Sales promotions are delivered to customers in many ways such as by mail, in-person or
within print media. However, the Internet and mobile technologies, such as cell phones,
present marketers with a number of new delivery options. For examples, the combination
of mobile devices and geographic positioning technology will soon permit marketers to
target promotions to a customer’s physical location. This will allow retailers and other
businesses to issue sales promotions, such as electronic coupons, to a customer’s mobile
device when they are near the location where the coupon can be used.

A sub-set of both contests and sweepstakes are games, which come in a variety of formats
such as scratch-off cards and collection of game pieces. Unlike contests and sweepstakes,
which may not require purchase, to participate in a game customers may be required to
make a purchase. In the United States and other countries, where eligibility is based on
purchase, games may be subjected to rigid legal controls and may actually fall under that
category of lotteries, which are tightly controlled.

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Tracking:
As we discussed in our coverage of advertising, tracking customer’s response to
marketers’ promotional activity is critical for measuring success of an advertisement. In
sales promotion, tracking is also used. For instance, grocery retailers, whose customers
are in possession of loyalty cards, have the ability to match customer sales data to coupon
use. This information can then be sold to coupon marketers who may use the information
to get a better picture of the buying patterns of those responding to the coupon.

Internet Communication:
For many years consumers typically became aware of sales promotions in passive ways.
That is, most customers obtained promotions not through an active search but by being a
recipient of a marketer’s promotion activity (e.g., received coupons in the mail). The
Internet is changing how customers obtain promotions. In addition to websites that offer
access to coupons, there are a large number of community forum sites where members
share details about how to obtain good deals which often include information on how or
where to find a sales promotion. Monitoring these sites may offer marketers insight into
how customers feel about certain promotions and may even suggest ideas for future sales
promotions.

Clutter and Need for Creativity:

In the same way an advertisement competes with other ads for customers’ attention, so to
do sales promotions. This is particularly an issue with inserted coupon promotions that
may be included in mailing or printed media along with numerous other offerings. The
challenge facing marketers is to find creative ways to separate their promotions from
those offered by their competitors.

Customers Expectations:
The onslaught of sales promotion activity over the last several decades has eroded the
value of the short-term requirement to act on sales promotions. Many customers are
conditioned to expect a promotion at the time of purchase otherwise they may withhold or
even alter their purchase if a promotion is not present. For instance, food shoppers are

22
inundated on a weekly basis with such a wide variety of sales promotions that their
loyalty to certain products has been replaced by their loyalty to current value items (i.e.,
products with a sales promotion). For marketers the challenge is to balance the
advantages short-term promotions offer versus the potential to erode loyalty to the
product.

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 CHAPTER-2
COMPANY PROFILE

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 COMPANY PROFILE

ABOUT HONDA DIVINE

Oberai Motors has been promoted by Shri Rakesh Oberai, who is a part of the S.L. Oberai
Group engaged in Mining, Lime manufacturing and in Automobile Dealerships in
Dehradun.

In the year 1985, Shri Rakesh Oberai initiated the diversifications of the family's mining
business into Automobile Dealership with the franchise of DCM Toyota vehicles.
Thereafter, he added the Bajaj Auto franchise in the year 1989. In september 1991, he
took over the ailing Hindustan Motors Dealership of DEE DEE Motors Private Limited
and turned it around by increasing its turnover to four times within one year. In 1993, he
also took on the Ashok Leyland Limited franchise for the Garhwal Region which was
continued till 1998. In the short period of time, the Company manage to establish a
substaintial market share for the Ashok Leyland product.

Oberai Motors today is a trusted name and leading organization in the Automobile trade
in its region. The DIVINE HONDA Dealership was awarded to Oberai Motors in
November 1999. The company has managed to successfully promote the DIVINE
HONDA Passenger Car range in their region, in a short span, due to sheer determination,
hard work and a customer oriented approach.

In the Company's continuous efforts to achieve customer delight, the company has set up
a full fledged Sales, Service cum Spare Parts outlets spread over an area of more than one
acre just six kms from the heart of the City of Dehradun. It has state-of-the-art Workshop
facility with latest equipments such as Paint Booth, computerized Wheel Alignment,

25
Wheel Balancing and crash repair system, among other to cater to the needs of their
customers.

To further provide convince to its customers, the Company has a branch office cum
service center at Saharanpur as well.

Being satisfied with working of the group, M/S DIVINE HONDA awarded Oberai
Motors the dealership for promoting the sale of their Commercial Vehicle Range in 2002.
The new company has established a state of the art 3S facility in the Transport Nagar,
where the sale and service facility will be developed for the Commercial Vehicle range.
The company has also established a 3S facility for commercial vehicles and passenger car
in Maletha, Sringar, Garhwal for catering to the growing needs of customers in the hilly
region.

Shri Rakesh Oberai has carved for himself a niche in automobile market. He is connected
with a large number of business, social and religious organisation, and is highly respected
in business and social circles.

He is assisted by his son Raghav Oberai, who has graduated in Mechanical Engineering
from Manipal Institute of Technology, Manipal and an MBA from Indian School of
Business, Hyderabad. After getting his Engineering Degree, he was selected on Campus
by DIVINE HONDA as a Graduate Engineer trainee in their Jamshedpur Plant. After one
year experience with DIVINE HONDA he joined the family business of Automobile
Dealership in the year 1999. Under his leadership, the DIVINE HONDA Passenger Car
dealership and the DIVINE HONDA Commercial Vehicles dealership have grown to
establish the Highest Market Shares and Customer Satisfaction level in the Garhwal
region of Uttaranchal.

26
 INTRODUCTION TO HONDA AUTOMOBILES

Honda Motor Company, Ltd.

Honda Giken Kogyo Kabushiki-gaisha
本田技研工業株式会社

Public
Type
(TYO: 7267) & (NYSE: HMC)

 Automotive
Industry  Aerospace

Founded 24 September 1948

 Soichiro Honda
Founder(s)
 Takeo Fujisawa

Headquarters Minato, Tokyo, Japan

Area served Worldwide

 Satoshi Aoki (Chairman)

Key people
 Takanobu Ito (CEO)

Products  Automobiles
 Motorcycles
 Scooters
 ATVs
 Electrical Generators
 Robotics
 Marine Equipment
 Jets

27
  Jet Engines
 Lawn and Garden Equipments

Revenue ▲ US$ 120.27 Billion (FY 2010)

Operating income ▲ US$ 2.34 Billion (FY 2010)

Net income ▲ US$ 1.39 Billion (FY 20010)

Total assets ▲ US$ 124.98 Billion (FY 2010)

Total equity ▲ US$ 40.6 Billion (FY 2010)

Employees 181,876

 Acura
Subsidiaries
 Honda Aircraft Company

Website Honda Worldwide

Honda Motor Company, Ltd. Honda Technology Research Institute Company, Limited)
is a Japanese multinational corporation primarily known as a manufacturer of
automobiles and motorcycles.

Honda is the world's largest manufacturer of motorcycles as well as the world's largest
manufacturer of internal combustion engines measured by volume, producing more than
14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to
become the second-largest Japanese automobile manufacturer. As of August 2008, Honda
surpassed Chrysler as the fourth largest automobile manufacturer in the United States.
Honda is the sixth largest automobile manufacturer in the world.

Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura in 1986. Aside from their core automobile and motorcycle businesses,
Honda also manufactures garden equipment, marine engines, personal watercraft and
power generators, amongst others. Since 1986, Honda has been involved with artificial

28
intelligence/robotics research and released their ACARO robot in 2000. They have also
ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and
the Honda HA-420 Honda Jet, scheduled to be released in 2011. Honda spends about 5%
of its revenues into R&D.

From a young age, Honda's founder, Soichiro Honda had a great interest in automobiles.
He worked as a mechanic at a Japanese tuning shop, Art Shokai, where he tuned cars and
entered them in races. A self-taught engineer, he later worked on a piston design which he
hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro worked
painstakingly to perfect the design, even going back to school and pawning his wife's
jewelry for collateral. Eventually, he won a contract with Toyota and built a factory to
construct pistons for them, which was destroyed in an earthquake. Due to a gas shortage
during World War II, Honda was unable to use his car, and his novel idea of attaching a
small engine to his bicycle attracted much curiosity. He then established the Honda
Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle
motorbike engines. Calling upon 18,000 bicycle shop owners across Japan to take part in
revitalizing a nation torn apart by war, Soichiro received enough capital to engineer his
first motorcycle, the Honda Cub. This marked the beginning of Honda Motor Company,
which would grow a short time later to be the world's largest manufacturer of motorcycles
by 1964.

The first production automobile from Honda was the T360 mini pick-up truck. Powered
by a small 356 cc straight-4 gasoline engine, it was classified under the cheaper Kei car
tax bracket. The first production car from Honda was the S500sports car. Its chain driven
rear wheels point to Honda's motorcycle origins.

Trademark origins
The stylized word and drawing design HM logo is a registered trademark at the USPTO,
and owned by Honda Motor Company Ltd.

Whereas Honda's trademark had been registered in Japan since November 13, 1953 it
wasn't until a decade later that the motorcycle and automobile company filed for trade
markregistration in the United States. On Friday, August 30, 1963, Honda Giken Gokyo
Kabushiki Kaisha of Tokyo, Japan filed for two trademarks with the USPTO.

29
One trademark was for the word mark of HM within an oval geometric shape. The
application, signed by founder Soichiro Honda, was filed in the primary category of non-
metallic building material products. Description included for the HM trademark was for
land vehicles-namely, motor cars, motorcycles, and motor trucks. Trademark registration
was granted on September 15, 1964.

Honda filed a second trademark with the USPTO on the same date of August 30, 1963.
The second mark was for the winged HM design logo that Honda had registered in Japan
since June 15, 1962. The Winged HM mark is in the non-metallic building material
products as well and applied to goods and services for land vehicles-namely, motor cars,
motorcycles, and motor trucks. The USPTO granted registration on September 15, 1964.

Of note, the USPTO initially issued an Office Action to Honda rejecting their application
for both the HM and Winged HM marks. The U.S. trademark office cited two other HM
trademarks that would likely cause confusion, mistake, or deception. Additionally they
determined that the identification of goods was too broad and indefinite. One of the
confusing HM trademarks was U.S. Registration No. 748,4794 for pneumatic tires and
owned by B.F. Goodrich. The other confusing trademark was for Holman & Moody for
automobile bodies and frames, U.S. Registration No. 708,684. Honda responded to the
Office Action, and following the USPTO's admonitions, amended their applications to
narrowly define the description of their goods and services to readily distinguish the
Honda HM trademarks to avoid confusion, mistake or deception. Subsequently, the
USPTO accepted Honda's response and approved their trademark registration on both
marks. U.S. trademark status for the HM and stylized winged HM is registered and
renewed. Both marks are owned by Honda Motor Co. LTD of Tokyo, Japan.

Corporate Profile and Divisions

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock
Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya,
Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland.

The company has assembly plants around the globe. These plants are located at China,
USA, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia, India,
Thailand, and Turkey.

Honda's Net Sales and Other Operating Revenue by Geographical Regions in 2010

30
Geographic Region Total revenue (in millions)

Japan ¥1,681,190

North America ¥5,980,876

Europe ¥1,236,757

Asia ¥1,283,154

Others ¥905,163

Automobiles
Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, Odyssey and
S2000. An early proponent of developing vehicles to cater to different needs and markets
worldwide, Honda's lineup varies by country and may feature vehicles exclusive to that
region. A few examples are the latest Acura TL luxury sedan and the Ridgeline, Honda's
first light-duty pickup truck. Both were engineered primarily in North America and are
exclusively produced and sold there.

The Honda Civic is a line of compact cars developed and manufactured by Honda. In
North America, the Civic is the second-longest continuously-running nameplate from a
Japanese manufacturer; only the Toyota Corolla, introduced in 1968, has been in
production longer. The Civic, along with the Accord and Prelude, comprised Honda's
vehicles sold in North America until the 1990s, when the model lineup was expanded.
Having gone through several generational changes, the Civic has become larger and more
upmarket, and it currently slots between the Fit and Accord.

Honda Automobiles is one of the Big Asian Four (with Toyota, Nissan and Hyundai).
The 2006 Ridgeline was a reintroduction of the concept of a Uni-Body truck. Earlier
examples of this concept are the Subaru Brat and Baja, Volkswagen Rabbit pick-up, and
Dodge Rampage/Plymouth Scamp.

Honda increased global production in September 2008 to meet demand for small cars in
the U.S. and emerging markets. The company is shuffling U.S. production to keep
factories busy and boost car output, while building fewer minivans and sport utility

31
vehicles as light truck sales fall. Honda produces the Insight, an affordable hybrid electric
vehicle that competes with Toyota Prius. Its first entrance into the pickup segment, the
light duty Ridgeline, won Truck of the Year from Motor Trend magazine in 2006 (also in
2006, the redesigned Civic won Car of the Year from the magazine, giving Honda a rare
double win of Motor Trend honors).

32
 CHAPTER-3
RESEARCH
METHODOLOGY

33
 RESEARCH METHODOLOGY

Any activity done without an objective in a mind cannot turn faithful. An objective
provides a specific direction to an activity. Objectives may range from very general to
very specify , but the should be clear enough to point out with responsible accuracy what
researcher wants to achieve through the study and how it will be helpful to the decision
maker in solving the problem.

Each research study has its own specific purpose. It is like to discover to question through
the application of scientific procedure. But the main aim of our research to find out the
truth that is hidden and which has not been discovered as yet.

1). RESEARCH DESIGN

On the basis of theoretical study a research has many types. All of these are distributed on
the nature of research. Some of there are like

1. Descriptive and analytical

2. Qualitative and Quantitative
3. Conceptual and Empirical
4. Applied and Fundamental
5. One Time Research

Our research is based on descriptive, qualitative and Quantitative research.

Descriptive Research :- Descriptive research includes surveys and facts finding

enquires of different kinds. The major purpose of Descriptive research is description of
the state of affairs as it exists at present. Researcher has no control over the variables of
this type of research.

Qualitative Research: - In our research we need comparison between different stage

and different condition. So this based on all qualitative data in short, Qualitative research
is especially important in the behavioral science where the aim is to discover the
underline motives of human behavior. Though such research we can analyses various
factors which motivate to people to behave in particular manner or which make people
like or dislike a particular thing.

34
Quantitative Research: - Quantitative research is based on the measurement of quantity
or amount. It is applicable to phenomena that cab be expressed in terms of Quantity. So
we can use it in our research for collection of all the numerical data.

2).SAMPLING DESIGN:-

“Sample Design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for
the sample”

3). SOURCES OF DATA

TYPE OF DATA

A) PRIMARY DATA
B) SECONDRY DATA

A) PRIMARY DATA:-

a) questionnaire

b) Interview schedule

B) SECONDRY DATA:-

a) Online Database

b) Journal

b) Internet

4) DATA COLLECTION TOOLS

Our research is based on qualitative & Quantitative research.

35
5) METHOD OF DATA COLLECTION

With the help of the questionnaire, interview schedule and study of data from
research carried out on Real Estate marketing Sector.

Statistical Tools :- it is sample percentage method.

Sample Area: Dehradun

Sample Size: 30

OBJECTIVE OF THE STUDY

The objective of this project is

 To know the preference of customer towards Honda Divine.

 To judge the Honda Divine preference among people and to find out the impact of
advertising.
 The most effective media of sales promotion and gauge consumer's, reaction to
promotional effort,
 To find out the promotional activities.
 To know the impact of advertisement on the customer’s mind.
 To know the effect of sales promotion strategy adopted by the company on the
mind of the customers.

36
 CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION

37
 DATA ANALYSIS AND INTERPRETATION

Table No. 1 Table representing the sex of the marketing executives

Sex No. of Respondents Percentage

Male 6 20%

Female 24 80%

Total 30 100%

No. of Respondents

Male
Female

Analysis

 80% of the respondents are male.

 20% of the respondents are female.

38
Table No. 2: Table representing the pricing of upcoming packs?

Prices No. of Respondents Percentage

High ─ ─

Reasonable 16 54%

Competitive 14 46%

Low ─ ─

Total 30 100%

No. of Respondents

High
Reasonable
Competitive
Low

Analysis
 54% of the respondents are of the opinion that the voucher are reasonable.
 46% of the respondents are of the opinion that the prices of the voucher are
competitive.
 None of the respondents feel that the prices of the voucher are either high or
low.

Table No. 3 Table representing the customer preference towards different network?

39
 Major Competitor No. of Respondents Percentage

Honda Divine 24 80

Vodafone 4 13

Airtel 2 7

Total 30 100

30

25 24

20

15

10

5 4
2

Analysis

 Majority of the respondents i.e. 80% opines that they are using Honda
Divine.
 13% of the respondents are of the opinion that the Vodafone is the major
competitor.
 Airtel is considered as the major competitor by 7% of the respondents.

40
 Table No. 4 Table representing the competitor’s strength of Honda Divine?

Strength No. of Respondents Percentage

Internet ─ ─

Brand Image 24 80

Pricing ─ ─

Promotional Activities 6 20

Total 30 100

30

25 24

20

Quality
15 Brand Image
Pricing
Promotional Activities
10

6
5

0 0
0
No. of Respondents

Analysis
 80% of the respondents are of the opinion that the competitor’s strength is
brand image.
 20% of the respondents opine that promotional activities are the strength of
the competitors.
 None of the respondents feel that quality and pricing are the strength of the
competitors.
Table No. 5 Table representing service of Honda Divine with respect to other competitors

Rating No. of Respondents Percentage

41
 Good 17 57

Very good 13 43

Fair ─ ─

Poor ─ ─

Total 30 100

No. of Respondents

Good
Very good
Fair
Poor

Analysis
 Majority of the respondents i.e. 57% are of the opinion that the Honda Divine
services are of good with respect to other competitors.

42
Table No. 6 Table representing the effect of sales promotion strategy on Customers?

Merits No. of Respondents Percentage

Yes 25 83

No 5 17

Total 30 100

17

Yes
No

83

Analysis

 83% of the respondents says that sales promotion strategy has good impact on
customer.

43
 Table No. 7 Table representing the promotion of the Honda Divine

Promotions No. of Respondents Percentage

Paper insertion 7 24

Telemarketing 10 33

Display stalls ─ ─

Participating in exhibition 10 33

Direct mail ─ ─

Presentations ─ ─

Showrooms 3 10

Total 30 100

12

10

8
Paper insertion
Telemarketing
Display stalls
6
Participating in exhibition
Direct mails
Presentation
4
Showrooms

0
No. of Respondents

Analysis

44
 24% of the respondents are of the opinion that paper insertions are used as
promotion of the Honda Divine.
 33% of the respondents opine that telemarketing is the means of promotion of
the Honda Divine.
 33% of the respondents feel that participating in exhibition has promoted the
Honda Divine.
 10% of the respondents are of the opinion that showrooms are used as
promotion of the Honda Divine.

45
Table No. 8 Table representing the satisfaction level of customer towards Honda Divine
Car

Discounts Given No. of Respondents Percentage

Satisfied 27 90

Not Satisfied 3 10

Total 30 100

Satisfied
Not Satisfied

Analysis

 90% of the respondents are of the satisfied with Honda Divine Car.
 10% of the respondents are not satisfied.

46
Table No. 9 Table representing the target consumers?

Target No. of Respondents Percentage

Students 20 66

Business Man 3 10

Corporate office 7 24

Total 30 100%

24

Students
Business Man
10 Corporate office
66

Analysis

 66% the target customers are students.

 10% of the target customers are Business man.
 24% are from Corporate Office.

47
CHAPTER-5
FINDINGS,
SUGGESTION,
CONCLUSION

48
 FINDINGS

 80% of the respondents are male.

 54% of the respondents are of the opinion that the voucher are reasonable.
 None of the respondents feel that the prices of the voucher are either high or
low.
 Majority of the respondents i.e. 80% opines that they are using Honda
Divine.
 13% of the respondents are of the opinion that the Vodafone is the major
competitor.
 Airtel is considered as the major competitor by 7% of the respondents.
 80% of the respondents are of the opinion that the competitor’s strength is
brand image.
 20% of the respondents opine that promotional activities are the strength of
the competitors.
 None of the respondents feel that quality and pricing are the strength of the
competitors.
 Majority of the respondents i.e. 57% are of the opinion that the Honda Divine
services are of good with respect to other competitors.
 83% of the respondents says that sales promotion strategy has good impact on
customer.
 24% of the respondents are of the opinion that paper insertions are used as
promotion of the Honda Divine.
 33% of the respondents opine that telemarketing is the means of promotion of
the Honda Divine.
 33% of the respondents feel that participating in exhibition has promoted the
Honda Divine.
 10% of the respondents are of the opinion that showrooms are used as
promotion of the Honda Divine.
 90% of the respondents are of the satisfied with Honda Divine Car.
 10% of the respondents are not satisfied.
 66% the target customers are students.

49
 SUGGESTIONS
 The first and foremost criteria of the company should be “to satisfy the customers
according to their demand and requirements.
 It has to introduce its own marketing strategy to compete with the competitors.
 The company must have to do much advertisement and Sales promotion by the way
its products can be known to various customers.
 It should be made aware to the customers that which kind of service is provided by
“Honda Divine”.
 The company has to change the wrong conception of the customers and they have to
make convince to purchase the products directly from the company for getting good
service.
 The company has to implement consumer sales promotion techniques such as Price
deal, loyalty rewards programs, Contests/sweepstakes/games, Point-of-sale displays.
 Also the company has to do trade sales promotions through Advertising Support
Programs Short Term Allowances, Sales Incentives or Push Money, Trade Shows.

50
 CONCLUSIONS

The study reflects that the use of sales promotion undeniably has increased over the years
in India. Future holds lot of promise for such schemes across wider range of product-
markets.

Sales Promotion has ceased to be major differentiator at least in the metros, with
almost all companies offering Carilar freebies and gifts. As a result now marketers have
to find out some innovative ways of sales promotion to differentiate from competitors.
Currently Price off and Bye one nice offers are very effective to attract the consumers
towards the products.

We have noted that these kind of promotional tools are useful for short term
increase in sales and to induce first trial. These types of promotional schemes should be
consistent and changed from time to time depending upon season and competitor’s
schemes.

So here marketer tries to increase sales of flats by using sales promotion tactics
like price off and percentage extra.

51
 BIBLOGRAPHY

Referred Books:

 Kothari C.R.- “Research Methodology” New Delhi Tata McGraw Hill In (95-
102)
 Kotler Phillip –“Marketing management “analysis, planning implementation and
control.
 Schiffman Leon G.& Kanuk Leslie Lazar, "Consumer Behavior", Prentice Hall of
India “6th edition
 Singh Harpreet–“Research Methodology”-Kalyani Publishers.(page no. 1-8, 68-
102)
Referred Websites:

www.godirect.in
 www.trustedproperty.org
 www.indianrealestateforum.com
 www.google.com
 www.scribd.com
 www.propertywala.com
 www.indiatimes.com
 www.buisnessstanderd.com
 www.economicstimes.com

52
 ANNEXURE

Representing the gender of the marketing executives

 Male

 Female

Representing the pricing of upcoming packs?

 High

 Reasonable

 Competitive

 Low

Representing the customer preference towards different network?

 Honda Divine

 Vodafone

 Airtel
Representing the competitor’s strength of Honda Divine?

 Internet

 Brand image

 Pricing

 Promotional activities

Representing service of Honda Divine with respect to other competitors

 Good

 Very good

 Fair

 Poor

53
Representing the effect of sales promotion strategy on customers?

 Yes

 No

Representing the promotion of the Honda Divine

 Paper insertion

 Telemarketing

 Display stalls

 Participating in exhibition

 Direct mail

 Presentations

 Showrooms

Representing the satisfaction level of customer towards Honda Divine Car

 Satisfied

 Not satisfied

Representing the target consumers?

 Students

 Business Man

 Corporate office

54