A

PROJECT REPORT

ON

“STUDY OF SALES PROMOTION TECHNIQUES USED BY

PATNI AUTOMOBILE FOR BAJAJ BIKE IN NAGPUR CITY

(M.S.)”

(2012 to 2013)

IN PARTIAL FULFILLMENT

OF

MASTER’S DEGREE

IN

MASTER OF BUSINESS ADMINISTRATION

RASHTRASANT TUKADOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR

(M.S.)

SUBMITTED BY:-

Mr. AJAY L. IKHAR

(ROLL NO:-MB11028)

MBA II Year

UNDER THE GUIDANCE OF

Mr. VASU RAOAssistant Professor

D.M.S. K.I.T.S. RAMTEK (2012-2013)

DEPARTMENT OF MANAGEMENT STUDIES,

KAVIKULGURU INSTITUTE OFTECHNOLOGY & SCIENCE, RAMTEK –

441 106, DIST: NAGPUR (M.S)

KAVIKULGURU INSTITUTE OF TECHNOLOGY & SCIENCE,RAMTEK – 441 106, DIST: NAGPUR (M.S.)

CERTIFICATE

This is to certify that this is a bonafide record of project work entitled

“STUDY OF SALES PROMOTION TECHNIQUES USED BY

PATNI AUTOMOBILE FOR BAJAJ BIKE IN NAGPUR CITY

(M.S.)”

(2012 to 2013)

Carried out by

Mr. AJAY L. IKHAR

(ROLL NO:-MB11028)

Student of the MASTER OF BUSINESS ADMINISTRATION course

During the academic year 2012-13

In partial fulfillment of the requirement of the Master Degree of

MASTER OF BUSINESS ADMINISTRATION offered by the

R.T. M. Nagpur University, Nagpur.

MR.VASU RAO Dr.BHASKAR PATEL

PROJECT GUIDE DIRECTOR

Ph. No. (07114) 255309Fax No. (07114) 255236Email: kits_ngp@sancharnet.in

Ref. No.: DMS/MB11028Reg. No.: RTMNU/A9/ 39448

DEPARTMENT OF MANAGEMENT STUDIESK.I.T.S, Ramtek- 441106

Ref. No.: DMS/MB11028 Ph. No. (07114) 255309Reg. No.: RTMNU/A9/ 39448 Fax No. (07114)255236

Email:kits_ngp@sancharnet.in

CERTIFICATE

I hereby declare that this project work titled,

“STUDY OF SALES PROMOTION TECHNIQUES USED BY

PATNI AUTOMOBILE FOR BAJAJ BIKE IN NAGPUR CITY

(M.S.)”

(2012 to 2013)

is submitted in partial fulfillment of the degree of

MASTER OF BUSINESS ADMINISTRATION

Embodies the result of the confide research carried out by

Mr. AJAY L. IKHAR

I find the work comprehensive, complete and of sufficiently high standard to warrant

this presentation for examination.

I further certify that the work has been carried out under my guidance and has not been

submitted earlier for any degree or diploma examination.

Place: KITS, Ramtek MR.VASU RAO

Date: (PROJECTGUIDE)

Department of Management Studies,K.I.T.S., Ramtek- 441106

DECLARATION

I, Mr. AJAY IKHAR, hereby declare that the Project Report entitled

“STUDY OF SALES PROMOTION TECHNIQUES USED BY

PATNI AUTOMOBILE FOR BAJAJ BIKE IN NAGPUR CITY

(M.S.)”

(2012 to 2013)

is submitted by me for the partial fulfillment of MBA at Kavikulguru Institute of

Technology & Science(KITS), Ramtek.

This report is an original work prepared/done by me and it has never been submitted to

any university/institution for the award of any degree/diploma.

Place: KITS, Ramtek Mr. AJAY L. IKHAR

Date: Email:ikharramtek@gmail.com

PROPOSAL

ENROLLMENT NO. RTMNU/A9/ 39448

NAME OF THE INSTITUTION Kavikulguru Institute of Technology &

Science, Ramtek

NAME Mr. AJAY L. IKHAR

ADDRESS Nehru Ward, Ramtek. Di- Nagpur

TITLE OF THE PROJECT “STUDY OF SALES PROMOTION

TECHNIQUES USED BY PATNI

AUTOMOBILE FOR BAJAJ BIKE IN

NAGPUR CITY (M.S.)” (2012 to 2013)

SUBJECT AREA MARKETING MANAGEMENT

NAME OF THE GUIDE Mr. Vasu Rao

Signature of the Student Signature of the Guide

Date:

FOR OFFICIAL USE ONLY

Approved Dr. Bhaskar Patel

Date: Signature of Director

PREFACE

In this age of globalization hyper competition has become a regular feature.

Today the markets are no less than battlegrounds and one has to strive very hard for

survival and growth.

This research work was undertaken with a view to getting acquainted with the

real life of an organization and the working environment in marketing department,

what we study in the books to know did the company follow the same procedure. What

is exactly the working style of the organization   and also to relate the conceptual

framework of Sales promotion practices in “PATNI AUTOMOBILE FOR

BAJAJ BIKES”

Changes in the global economy, the product image and brand preference of

Indian customer has changed from traditional model of loyalty to that of new model of

sheer value. For retention of such customer, marketer use sales promotion as a major

tool. Due to the development in the technology, product look nearly same .It is not

possible to the marketer to differentiate their product on the basis of quality, feature,

price etc. Hence the sales promotion play crucial role in the marketing.

In this project more emphasize given to the various techniques of sales

promotion and its impact on sales of products. Actually in recent trend various

techniques become victim of clutter, even though it can be eliminated by generating

innovative and more attractive techniques to lure the customers.

It remained a good experience on the part researched as now researcher is able

to learn some real life situation of business in this globalization. The researcher hopes

that the study research will enable the reader to gain such crucial information intended

for knowledge.

Mr. AJAY L. IKHAR

Email:ikharramtek@gmail.com

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible

without the kind support and help of many individuals and organizations. I would like

to extend my sincere thanks to all of them.

I, AJAY L. IKHAR, student of K.I.T.S. Ramtek (Department of Management

Studies) extremely grateful to “PATNI AUTOMOBILE” for inspiring me to do the

study on the particular topic entitled “Study of sales promotion techniques used

by PATNI Automobile for Bajaj bike in Nagpur city (M.S.)” (2012 to

2013)

At this juncture I feel deeply honored in expressing my sincere thanks to all

dealers for understanding my research work & providing valuable information to me

which is needed & leading to the successful completion of my project.

I express my gratitude to Dr. Bhaskar Patel, Director, Kavikulguru Institute of

Technology and Science. The blessing, help and guidance & inspiration given by him

time to time shall carry me a long way in the journey of life on which I am about to

embark.

I take this opportunity to express my profound gratitude and deep regards to

my guide Mr. Vasu Rao & Mr. Sohail Khan , faculty, D.M.S., K.I.T.S, RAMTEK for

his exemplary guidance, monitoring and constant encouragement throughout the

course of this project.

I would also like to thank all the faculty members of D.M.S.,

K.I.T.S.,RAMTEK for their valuable support, advice and guidance. They never

refused me to help as I am not doing project under them.

Lastly, I thank almighty, my parents, seniors and friends for their constant

encouragement & support.

Mr. AJAY L. IKHAR

Email:ikharramtek@gmail.com

CHAPTER PLAN

Sr.No Chapter Page

No.

Executive summary 9

1 Introduction

2.1 Sales Promotion Concept

11

2 Company profile 27

3 Research Aim, Objectives& Reason for selecting the topic 37

4 Literature review 39

5 Research Methodology

5.1 Research method

5.2 Research approach

5.3 Sample plan

5.4 Source of data collection

43

6 Data analysis and interpretations 50

7 Conclusions 77

8 Suggestions 79

9 Limitations & Future Research Scope 81

Bibliography 83

Annexure 86

EXECUTIVE SUMMARY

Sales promotion being one of the important tool used by marketer to promote its

product in the market. More than any other element of the promotional mix

(advertising, personal selling, publicity, direct marketing), sales promotion is about

“action”. It is about stimulating customer to buy the product. It acts as a competitive

weapon by providing an extra incentive for the target audience to purchase or support

one brand over another.

This project is undertaken to know the sales promotion techniques used by PATNI

Automobile for its dealers. This project explores the sales promotion techniques which

EXECUTIVE SUMMARY

creates impact on dealers with reference to Nagpur city.

At the beginning of this project researcher give brief information about the concept of

sales promotion & about the company. Then after concentration is given to the primary

research it includes the analysis and results of survey which was focuses on

effectiveness of sales promotion techniques. The survey was conducted with the help

of structured questionnaire. At last conclusion of report, findings and suggestions was

given based on study of secondary source as well as primary research.

There were some limitations while doing the project. The data was collected by

personal interviews of the respondents with the help of structured questionnaire. It was

very challenging to fill up the questionnaire because every dealer was busy in work

and hence they refused to give time and answer for the questions.

Objectives of the Study

To understand the concept of sales promotions.

To study the different sales promotion schemes used by PATNI automobile for Bajaj bike.

To study the impact of sales promotion on sales of PATNI automobile.

Sales promotion is a key ingredient in marketing campaigns. Sales promotion

consist of a diverse collection of incentive tools, mostly short term, designed to

stimulate quicker or greater purchase of a particular products or services by

CHAPTER – 01

INTRODUCTION

consumers or the trade.

Whereas advertising offers a reason to buy, sales promotion offers an incentive

to buy, sales promotion includes tools for consumers promotion (tour, coupons, free

display material, premiums, prizes, rewards, free trials, warranties, tie in promotions,

cross promotions, point of purchase display and demonstration); trait promotion

(prices off, advertising and display allowances, and free goods).

Sales promotion tools are used by most organizations, including manufactures,

distributors, retail or stared associations, and non profit organizations.

The sales promotion has very important it pulls customer or can be push by the

manufacturer, distributors, dealers by offering inducement to the customer, retailer,

dealer, distributor etc. sales promotion have short term gains of increasing sales and its

effect is also temporary.

Patni Automobile is the authorized dealer for Bajaj Auto Ltd. in Nagpur city.

Patni automobile is uses several sales promotion techniques to increase the sales of the

Bajaj bikes. To increase sale of the bikes it is not sufficient to provide the benefits to

the customer only there should be need to provide extra benefits to the peoples who

make product (bike) reach/available to the customers hence Patni automobile gives

more emphasis on the dealers and try to satisfy its dealers by providing extra benefit

and hence it gives more focus on dealer (trade) sales promotion techniques.

MARKETING MIX

Marketing mix is the set of marketing tools that a firm uses to pursue its

marketing objectives in the target market.

McCarthy has popularized a four factor classification of marketing tools known

as the 4P’s of the marketing mix.

Fig- MARKETING MIX

These are the four basic pillar of marketing mix. Most of the marketing

strategies are built on the basis of these criteria. Promotion is one of the important

elements of marketing mix.

PRODUCT:

Product is anything which satisfies needs and wants of the customer, it may be

tangible (goods) or intangible (services). It deals with new product development,

product life cycle, product mix, product lines, branding and associated services to a

product. From the customer’s point of view, it helps in satisfying the customer’s needs

and wants.

PRICE:

Price is the monetary value of the product. Price deals with selecting the

pricing objectives, setting the price, discounts, allowances, payment policies and credit

terms. It is very important to the customers as it decides the cost the customer has to

pay to gain the product value.

PLACE:

This marketing tool stands for the various activities the company undertakes to

make the product accessible and available to the customer. It involves market size,

channel selection and management, storage and physical distribution with the ultimate

purpose of efficiently supplying the company’s offer to the target market.

PROMOTION:

MARKETING MIX

PROMOTIONPLACEPRICEPRODUCT

Promotion stands for various activities the company undertakes to

communicate and promote its products to the target market. It involves communication

programs i.e. direct marketing, advertising, sales promotions, public relations and

motivation of sales force. To the customer this tool provides knowledge and

information.

PROMOTION MIX

The Promotion Mix of a company includes;

Fig- PROMOTION MIX

CONCEPT OF SALES PROMOTION

PROMOTION

MIX

PUBLIC RELATIONS

ADVERTISING

DIRECT MARKETING

PUBLICITY

PERSONAL SELLING

SALES PROMOTION

Sales Promotion Defined:

“Sales promotion is a marketing discipline that utilizes a variety of incentive

technique to structure sales –related programs targeted to consumers, trade, and / or

sales levels that generate a specific, measurable action or response for a product or

service.”

- Counsel of sales promotion agencies

“A direct inducement that offers an extra value or incentive for the product to

the sales force, distributors, or the final consumer with the primary objective of

creating an immediate sale”

- Haugh (1983)

“Media & non media marketing pressure applied for a predetermined, limited

period of time in order to stimulate trial & impulse purchases, increase consumer

demand, or improve product quality”.

- American Marketing

Association(AMA)

1988

“Sales promotion consists of a diverse collection of incentive tools, mostly

short term, designed to stimulate quicker or greater purchase of a particular products or

services by consumers or the trade”.

- Philip Kotler

“Sales promotions are short-term incentives to encourage purchase or sales of a

product or service.”

- Roger A Strang

Sales promotion tools are continuously employed by retailers, dealers,

distributors and manufacturers with the purpose of stimulating the purchase and the

consumption of their products and brands.

Sales promotion refers to the short-term incentives to encourage sales of a

product or service. Sales promotion consist of a diverse collection of incentive tools,

mostly short term, designed to stimulate quicker or greater purchase of a particular

products or services by consumers or the trade.

Sales promotion tools are continuously employed by retailers and

manufacturers with the purpose of stimulating the purchase and the consumption of

their products and brands.

More than any other element of the promotional mix (advertising, personal

selling, publicity, direct marketing) sales promotion is about “action”. It is about

stimulating customer to buy the products. Sales promotion techniques are used by most

organizations, including manufactures, distributors, retail or stared associations, and

non profit organizations. While the role of sales promotion has become increasingly

important and has evolved in to an important element of the strategic IMC mix. Sales

promotion acts as a competitive weapon by providing an extra incentive for the target

audience to purchase or support one brand over another.

Sales promotion is one of the seven aspects of the promotional mix. (The other

six parts of the promotional mix are advertising, personal selling, direct marketing,

publicity/public relations, corporate image and exhibitions.) Media and non-media

marketing communication are employed for a pre-determined, limited time to increase

consumer demand, stimulate market demand or improve product availability.

Examples include contests, coupons, freebies, loss leaders, point of purchase displays,

premiums, prizes, product samples, and rebates.

OBJECTIVES OF SALES PROMOTION

Stimulating Demand:

The most important use of sales promotion is to build demand by convincing

customers to make a purchase. Special promotions, especially those that lower the cost

of ownership to the customer (e.g., price reduction), can be employed to stimulate

sales.

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.

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. 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.

Providing Information:

Generally sales promotion techniques are designed to move customers to some

action and are rarely simply informational in nature. However, some sales promotions

do offer customers access to product information.

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.

The specific objectives set for sales promotions will vary with the type of the

target market.

For Consumer promotions:

Consumer relationship building

Encouraging purchasing of larger sized units.

Building trial among non-users.

Attracting switchers away from the competitor’s brands.

For Trade promotions:

Including retailers to carry new items and higher level of inventory.

Encouraging off-seasonal buying.

Of-setting competitive promotions.

Building brand loyalty of retailers and gaining entry into new retail outlets.

For Sales force promotions:

Help in encouraging support of a new product or model.

Encouraging more prospecting and stimulating off-seasonal sales

SALES PROMOTION STRATEGY

A sales promotion strategy is an activity that is designed to help boost the sales

of a product or service. The importance of a sales promotion strategy cannot be

underestimated. This is because a sales promotion strategy is important to a business

boosting its sales.

Types of Sales Promotion Strategies are,

Pull Strategies: (Consumer Promotion)

A ‘pull’ sales promotion strategy focuses more on the consumer instead of the

reseller or distributor. This strategy involves getting the consumer to ‘pull’ or purchase

the product/services directly from the company itself. This strategy targets its

marketing efforts directly on the consumers with the hope that it will stimulate interest

and demand for the product. This pull strategy is often used when distributors are

reluctant to carry or distribute a product.

Push Strategies: (Trade Promotion)

A ‘push’ sales promotion strategy involves ‘pushing’ distributors and retailers

to sell your products and services to the consumer by offering various kinds of

promotions and personal selling efforts. What happens here is that a company

promotes their product/services to a reseller who in turn promotes it to another reseller

or to the consumer. The basic objective of this strategy is to persuade retailers,

wholesalers and distributors to carry your brand, give it shelf space, promote it by

advertising, and ultimately ‘push’ it forward to the consumer.

TYPES OF SALES PROMOTION

There should be mainly three types of sales promotion, which used in the

business.

Consumer-Oriented Promotions

Trade (Dealer) -Oriented Promotions

Sales Force-Oriented

Promotion

Fig- TYPES OF SALES PROMOTION

SALES PROMOTION TOOLS

Many tools can be used to accomplish sales promotion objectives. Main

promotional tools are as follows,

CONSUMER-ORIENTED PROMOTION TOOLS

The main consumer promotion tools are as follows,

Samples:

They are offers of a trial amount of a product. It consists of inviting prospective

purchasers to try the product without cost or at a lower cost in the hope that they will

buy the product. Samples may be free or discounted.

Coupons:

Coupons are certificates that give buyers a saving when they purchase a

specified product. Coupons can be mailed, placed in advertisements or included with

other products.

Premiums:

These are the goods offered either free or at a low cost as an incentive to buy a

product. Premiums may be in-pack or on-pack (outside the pack).

Price Packs:

Samples

Coupons

Premiums

Contests

Prizes

Premiums

Extra Quantity

Price off or Discount

Discount

Bonuses

Buying allowances

Incentive

Gift

Tour

Contest

Credit facility

Sales contests

Sales Commission

Trips

Gifts

Salesmen Training

Cents-off deals or price packs offer consumers savings by way of reducing

prices that are marked by the producer directly on the package.

Prizes:

They are offers of chance to win something such as cash, trips or goods – by

luck or through extra efforts. Contests of talent and sweepstakes or draws the most

popular prize offering promotions.

Price off or Discount

The concession or reduction in price is given to the customers and they save the

money in the purchase. The customers get the products in lower price. The same

features of the products areoffered to the customers at lower price. The value of the

money of customers is increased.

Extra Quantity:

Under this sales promotion method the additional benefit is given by providing

extra quantity of the product without an extra payment. Quantity of the product is

packed in the pack itself or separately.

TRADE (DEALER) -ORIENTED PROMOTION TOOLS

More money is spent by companies on trade promotion (58%) than on

consumer promotions (42%). The major trade promotion tools are as follows;

Discounts:

It is also known as price-off or off-invoice or off-list. Discounts price cut off

the list price on a particular quantity purchased during a stated time.

Buying Allowances:

They are the amount offered in return for an agreement by the retailer to feature

the manufacturer’s products in some way; displays, advertising or otherwise.

Contests:

Advertisers can develop contests to motivate resellers.

.

SALES FORCE-ORIENTED PROMOTION TOOLS

Sales contests:

Contests are great ways to create a sense of participation and to motivate

salespeople to achieve success, especially when they are participating against each

other.

Sales commission:

The managers fix the commission rates on the sales of the products. The

commission can be of fix rate or it may be variable or in combination. Depending upon

the situation and type of products the commission rates can be decided.

Trips:

This shows the target to the salesman to work and achieve. The salesmen who

achieve the target at the end of year or quarter or half year or annual, would be

sponsored free trips to the tourist destination. This exciting offer keeps the salesmen

motivated.

Gifts:

The salesmen those who work as per the plan and achieve the targets can be

offered gifts or merchandise. This keeps the interest of the sales men on track and they

do their work without any disturbance.

Training of salesmen:

The training provides knowledge regarding the products, their features,

operating system and fault finding and repair etc. The training gives knowledge and

skills to the trainees. The skills and knowledge give confidence and in return the

confidence gives good performance and satisfaction at job.

Incentive:

Incentive is given to the sales force on their achievement and performance. If

any sales person achieves target or more than these, then he is able for the incentive.

BAJAJ AUTO LTD.

Bajaj Auto Limited is an Indian motorised vehicle-producing company. Bajaj Auto is

CHAPTER – 02

COMPANY PROFILE

a part of Bajaj Group. It was founded by Jamnalal Bajaj at Rajasthan in the 1930s. It is

based in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad) and

Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D

centre Ahead. Bajaj Auto makes and exports automobiles, scooters, motorcycles and

auto rickshaws.

Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-

largest in India.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946. It features at

1639 in Forbes 2011 list.

Bajaj Auto Limited

Type Public company

Traded asBSE: 532977, NSE: BAJAJ-AUTO

BSE SENSEX Constituent

Industry Automotive

Headquarters Pune, Mumbai, India

Key people Rahul Bajaj (Chairman)

ProductsMotorcycles, three-wheeler vehicles

and cars

Revenue202.01 billion (US$3.7 billion)

(2012)[1]

Net income30.45 billion (US$560 million)

(2012)

Employees 10,250 (2006–07)

Parent Bajaj Group

Website www.bajajauto.com

The company has changed its image from a scooter manufacturer to a two-wheeler

manufacturer. Its product range encompasses scooterettes, scooters and motorcycles.

Its growth has come in the last four years after successful introduction of models in the

motorcycle segment. The company is headed by Rahul Bajaj.

TIMELINE OF NEW RELEASES1960–1970 Vespa 150 – under the licence of Piaggio of Italy

1971 three-wheeler goods carrier

1972 Bajaj Chetak

1976 Bajaj Super

1977 Bajaj Priya

1977 Rear engine autorickshaw

1981 Bajaj M-50

1986 Bajaj M-80, Kawasaki Bajaj KB100, Kawasaki Bajaj KB125,

1990 Bajaj Sunny

1991 Kawasaki Bajaj 4S Champion

1993 Bajaj Stride

1994 Bajaj Classic

1995 Bajaj Super Excel

1997 Kawasaki Bajaj Boxer, rear engine diesel autorickshaw

1998 Kawasaki Bajaj Caliber, Bajaj Legend

1999 Bajaj Spirit

2000 Bajaj Saffire, Bajaj Prowler

2001 Eliminator, Bajaj Pulsar, Caliber Croma

2003 Caliber 115, Kawasaki Bajaj Wind 125, Bajaj Pulsar DTS-i, Bajaj Endura FX

2004 Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-

i

2005 Bajaj Wave, Bajaj Avenger, Bajaj Discover 112

2006 Bajaj Platina

2007 Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel

Injection), XCD 125 DTS-Si

2008 Bajaj Discover 135 DTS-i – sport (upgrade of existing 135 cc model)

2009 Bajaj Pulsar 135, Bajaj XCD 135 cc, Bajaj Pulsar 150 DTS-i UG IV, Bajaj Pulsar

180 DTS-i UG IV, Bajaj Pulsar 220 DTS-i, Bajaj Discover 100 DTS-Si, Kawasaki

Ninja 250R

2010 Bajaj Discover 150

2011 Bajaj Discover 125

2012 Bajaj RE 60, mini car for intra-city urban transportation

2012 KTM Duke 200, launch of 200 cc bike from the KTM stable

2012 Bajaj Pulsar 200 NS, launch of 200 cc bike, Discover 125ST, launch of 125 cc bike

COMPANY PROFILE PATNI AUTOMOBILE

PATNI AUTOMOBILE DISTRICT-NAGPUR CITY (M.S.)  

Founder of the PATNI Automobile Nagpur, Dist. Nagpur is Mr.Umesh Patni and Mr.

Naresh Patni. Both of them have dynamic leadership for Bajaj Auto Ltd. in Nagpur

City.

Year Established: 1969

PATNI AUTOMOBILE DIST. NAGPUR CITY.

Patni Automobile is the authorized dealer for Bajaj Auto Ltd., Worlds leading two

wheeler company - started with an humble beginning in the year 1969. Under the

enterprising, intelligent and dynamic leadership of Mr.Umesh Patni and Mr. Naresh

Patni, Proprietor. The dealerships grew in build over the years presently enjoying the

distinction of Bajaj bikes two wheeler dealership in Central India. Patni has its two

showroom/distribution centre one is in Kamptee road, Nagpur and another is at

Butibori, Nagpur.

COMPANY HIERARCHY

Fig- COMPANY HIRARCHY

ACTIVITIES BY PATNI AUTOMOBILE

DEALER/MECHANIC MEETING

MANAGER

GODOWN INCHARGE

WORKSHOP MANAGER

AREA MANAGER

SHOWROOM MANAGER

SALESMAN

MILEGE CONTEST

TOUR FOR DEALERS:

PRIZEDISTRIBUTION

CHAPTER – 03

Research Aim Research Objectives Reason for Selecting the

Topic

Group Photo of Dealers and their Sub-dealers

TITLE: -

“Study of Sales Promotion Techniques used by PATNI Automobile for Bajaj

bike in Nagpur city” (2012 to 2013)

Aim: -

Sales Promotion is done to boost up the sales. Various sales promotion

techniques are used by the companies to boost up their respective sales may be on

short term .The researcher aim to find the various sales promotion activities used by

PATNI automobile. In this project more emphasize is given to know the various

techniques of sales promotion and its impact on sales of PATNI automobile.

Objectives of the Study

To understand the concept of sales promotions.

To study the different sales promotion schemes used by PATNI automobile for

Bajaj bike.

To study the impact of sales promotion on sales of PATNI automobile.

Reasons for selecting the topic:-

Sales promotion is very important part of promotion. Many companies

spending huge money on sales promotion & it goes on increasing.

This study will help the management in decision-making about sales promotion

tools and techniques of PATNI automobiles.

This study will help the management in better and more effective relation with

the dealers & customers & the company that definitely affect the results in

better way.

LITERATURE REVIEW

Literature review is a body of text that aims to review the critical points of current

knowledge or mythological approaches on particular topic. Literature review are

secondary source most often associated with academic oriented literature such as these

a literature review usually precedes a research proposal and result section. Its ultimate

goal is to bring the reader up to date with current literature on a topic and forms the

basis for another goal such as future that may be needed in the area.

Sunil Gupta, (1988) have demonstrated that a comprehensive model which captures

three main components of consumers buying decision: when, what, and how much to

buy. The model incorporates price, and promotions of the competitive brands as well.

He states that promotional variables (feature, display, price cut) play a strong role in

consumer brand choice decisions. feature and display have some impact on the

purchase time decision, price cut and regular price have almost none.

CHAPTER – 04

Literature Review

Blattberg and Neslin, (1990); Effect of sales promotion as a tool on customer

attention to purchase; One of the most important of channels is sales promotion. Sales

promotion is action-focused marketing events whose purpose is to have a direct impact

on the behaviour of the firm’s consumers. The researcher analysed that there are three

major types of sales promotion: consumer promotion, trade promotion and sales force

promotion. Consumer promotions are promotions offered by manufacturer directly to

consumers whereas trade promotion is benefited for retailers/dealers & sales force

promotion is give benefit to the sales people hence all three sales promotion

programmes are similar important for the companies.

Chimun Kumar Nath, (2003) find that advertising and sales promotion has large

impact on the buying behavior and brands preferences. According to researcher

advertising remind the consumer about the product. And sales promotion helps the

consumer to purchase the product. Researcher states that the exposure to advertising is

associated with changes in the buying pattern in so for as the choice of the brand is

concerned.

Begona Alvarez and Rodolfo Vazquez Casielles (2005) found that it is necessary to

consider the product's promotional state at the moment of purchase as an explanatory

element of the process. Also they state that immediate price reduction is the technique

that exerts greatest influence on the brand choice process. It is possible that the

consumer perceives a promotion, for example, coupons or rebates, but does not modify

his or her behavior.

Nelson OlyNdubisi, (2006) suggest that the effectiveness of sales promotional

strategies namely coupons, price discounts, free samples, bonus pack and in-store

display in the purchases of low-involvement of products by Malaysian consumers.

Their research work also recognizes that certain demographic factors such as education

and income of consumers can found the observed relationship hence, these factors

were controlled. Their survey shows that price discounts, free samples, bonus packs

and store display are associated with product trial. Coupons do not have any significant

effect on product trial.

Universiteit Maastricht (2007); In this study researcher suggest that, Today’s

consumer-oriented marketplace is characterized by a countless number of products &

brands. Globalization causes increased competition, national borders disappear,

consumer demand more and more, and the pressure on producers to efficiently and

effectively live up to consumer’s expectations keeps increasing. This research

conclude that the presence of a premium promotion leads to an increase in category,

brand choice is to the greatest extend affected by the premium promotion.

Bobby Andersson and AmanHailemariam, (2007) according to them, the individual

objective of the tool can be different they can still be used overall to lead to the same

overall goal. Their research work also state that focus is not always on using sales

promotion tool to generate sales, but to improve relationships. As for the tools used,

they found that there are commonly used sales promotional tools. More specifically

gift giving can be deemed inappropriate in certain contexts and should be used

carefully.

Asif Zameer, (2008) states that management of sales promotion and event has directly

impact on the profit , awareness and image in the mind of the customer. In retail

sector sales promotion tools has impact on the store traffic with fast movement of the

goods. Also researcher state that the use of promotional tools or event depend on the

nature of the product and also the purpose of the event and promotion.

Lisa S. McNeill, (2008)- have demonstrated that no major impact of initial product

price on consumers who likely to feel satisfied or pleased with price promotion

experience. Incomes of the consumer’s have impact on the sales promotion. Rebates

and Refunds have an impact of the consumer’s preferences.

RaheelaNiazi, (2008)- suggest that firms use games as major type for online sales

promotions of consumer products. In addition firm also use ad vergames, contests and

sweepstakes for online sales promotion. For digital product firms take necessary

aspects to make their websites effectives. He also focuses on the online transaction

security and provides playfulness in websites which make them more effective.

His research work state that firms use aspects to make websites effective, they do not

use many of sales promotion types for online promotions.

Adebisi Sunday A., Babatunde Bayode O.(2009); The title of research paper is

“STRATEGIC INFLUENCE OF PROMOTIONAL MIX ON ORGANISATION

SALE TURNOVER IN THE FACE OF STRONG COMPETITORS” in this research

paper researchers had concluded that Every organization that must continue to

survive in its operating environment must be able to adequately its product. For the

organization to achieve its aim of profit making as a manufacturing organization, it

must make sure that, its promotional activities achieve its aim of making the product

acceptable and bought by the targeted market. The promotion of any product must be

accessible to the people that the product will be useful for and at the same time, must

be able to encourage new customers to purchase and repurchase the products. Every

organization must have a proper and well monitor promotional activities and must be

able to tailor it in such a way that it will increase it sales thereby increasing the profit

of the organization.

Ibojo Bolanle Odunlami and Amos Ogunsiji (2011); In this research paper the

objective of the research paper is to find out if sales promotion techniques to be

adopted at a given time affect the company’s sales volume and also to look at the

effect of sales promotion on organizational performance. The researcher found that

effective implementation of sales promotion tools lead to increase in sales volume and

invariably higher profit. The effectiveness of sales promotion can sustain the life of a

failing product sufficiently to enable it recover from its decline. Sales promotion is

important at all level of product life cycle but it is more important at the introductory

and growth stage. Finally, the effects of sales promotion on organizational

performance have been positive resulted in increased organizations sales volume and

profitability in terms of purchase of larger size unit of products by consumers which

will in turn lead to higher sales and profitability

Oyedapo Williams , Akinlabi Babatunde (2012). In this researcher paper the

researcher analyzed that sales promotion is normally used to boost sales there by

increasing the profit. The most significant sales promotion techniques that contributed

to higher performance in the company are special sales, price off and coupons. The

low significant techniques are sweepstake and gifts. In the course of any sales

promotion exercise, management should strategically facilitate the exercises so that

customers do not doubt the reality of the programme by using credible techniques. For

instance, very incredible prize like winning over a thousand brand new automobiles

should be avoided. In addition, the study found that organization promotion strategies

enhance consumer buying pattern. According to the result, majority of the respondents

accepted the facts that organization promotion strategies enhance consumer buying

pattern

Alexander Preko(2012) The researcher states that consumers are always attracted by

various sales promotion tools to try a new product and make an initial purchase.

However, the effects induced by sales promotion tools need to be sustained by the

actual performance of the products, which should be the ultimate focus of management

to retain loyal consumers so as to generate stable sales revenues in a longer term. Sales

promotion helps to build brand loyalty by giving the seller the opportunity to attract a

loyal and profitable set of customers which provides sellers some protections from

competition and greater control in planning their marketing mix.

Dr Sadashiv. P. Kalyankar & Mr. Babapeer .S .Hamgi (2012); The researcher

studied with the title “EFFECT OF SALES PROMOTION ACTIVITIES ON SALES

VOLUME OF COMMERCIAL VEHICLE DEALERS IN VIDHARBHA”; In this

study researcher suggest that educating their local customers and conclude the sales.

Researcher states that in order to achieve the designated target the dealer is required to

maintain a close link with the target market through various sales promotional

activities. At the end the research concludes that there is definite relationship between

the sales promotional activities conducted by the dealer and the sales volume achieved

by them.

RESEARCH METHODOLOGY

Research Methodology is defined as “The study of methods by which gets

knowledge; it deals with the cognitive processes imposed on research by problems

arising from the nature of its subject matter.”

CHAPTER – 05

Research Methodology

The purpose of this study is to discover and analyze the impact of various sales

promotion techniques of PATNI Automobile on dealers as driving factor and measures

its impact.

TYPES OF RESEACH

There are three types of research in business:

Exploratory research

Descriptive research

Causal research

This research is based on Descriptive type of research because the research is to

describe things such as Sales promotion techniques used by PATNI Automobile for its

dealers and to know its impact.

DESCRIPTIVE RESEARCH:

Objective is to describe things such as market potential for a product or the

demographics and attitude of customers.

Also known as statistical research.

Describes characteristics of a population or phenomenon.

Uses for frequencies, averages and other statistical calculations.

Unable to describe what caused the situation.

Some understanding of the nature of the problem.

DATA COLLECTION:

The research study required a considerable amount of data. In order to collect

the most appropriate data there are two way to collect data.

Fig- METHOD OF DATA COLLECTION

PRIMARY DATA

Primary data is the data which is researcher collected by its own. It is used to

solve a problem or take advantage at an opportunity on which decision is pending. In

this project work the primary data was collected through a survey and well- designed

DATA COLLECTION

PRIMARY DATA SECONDARY DATA

questionnaires.

SECONDARY DATA

Secondary data is the data which is collected by someone else. The secondary

data is the data which have already collected and stored. In this project work the

secondary data was collected through Referring books, Company Records, Internet,

Journals etc.

RESEARCH APPROACH:-

The process of management follows a typical structure, wherein, the

approaches may be different and vary from situation to situation. The process may be

purely academic or theoretical or action oriented. Which approach is appropriate for a

given situation is largely depends on specific need of a researcher. In research

approach there are generally following kinds of methods are found,

i) Survey Method-

There are different ways a survey can be carried out. It can be done by

telephone, by mail, or in person.

ii) Observation Method-

By watching people, observational researchers gain a better understanding of

what a product symbolizes to a customers, and greater insight in to the bond people

and product that is the essence of brand loyalty.

iii) Experiment Method-

This involve the more control over the cause and effect, when compared to a

survey. In experiment, researcher tries to measure the effect of one or more variables

by changing the level of some variables, and measuring the effect.

From all above methods, Researcher used survey method and observation

method, it is because, to know the opinion of dealers it helps to measuring the impact

of sales promotion techniques.

RESEARCH INSTRUMENT :

Questionnaire:-

It is the instrument through which are data is collected.

A well structured Questionnaire were used as a research instrument and during

this project primary data collected with the help of questionnaire.

INTERVIEW METHOD:-

Telephonic interview Method:-

It is the method in which contact made with dealers with the help of telephone.

Personal Contact Method:-

It is systematic method by which one individual person can directly contact

with researcher. And give their individual opinion.

SAMPLING PLAN :

Sampling is the process of selecting a small number of elements from a larger

defined target group of elements.

It is plans of data collection in which researcher take a particular set of people

by which the researcher can be occupy most of the research which the researcher

allotted.

Sampling Unit

In this project, sampling unit is Dealers of PATNI Automobiles who deals in

Bajaj bikes.

Sample Size

This refers to the number of items to be selected from the universe to continue

the sample. The size of sample should neither be excessively large nor too small. It

should be optimum. An optimum sample is one which fulfills the requirement of

efficiency, representativeness, reliability and flexibility.

The sample size used for this study is as fallows,

Dealers - 30

Due to the time constraints it is not possible to meet maximum number of

dealers hence 30 dealers selected and try to find out the best possible and reliable

result.

Sample procedure

Sampling

Fig- METHOD OF SAMPLING

Probability Sampling:

Probability sampling is also known as ‘random sampling’ or ‘chance sampling’

in this sampling design, every item of the universe has equal chance of inclusion in the

sample.

Non-Probability Sampling:

Non-probability sampling is that sampling procedure which does not afford any

basis for estimating the probability that each item in the population has of being

included in the sample.

In this research study convenience sampling is used for the retailers.

Convenience sampling:

Convenience sampling relies upon convenience and access. Convenience

sampling as name implies is based on the researcher who is to select a sample.

Respondent is the sample for researcher who is to select a sample.

Scaling techniques:

Ratings scale Likert scale (5 point) which is close ended is used in this research

to know about impact of sales promotion techniques used by PATNI Automobile for

dealers for the Bajaj bikes.

Method of Data Analysis:

For the analysis of impact of sales promotion, Chi-square test is used for the

data analysis.

Research period for this topic is 2012-13 and Research Location is Nagpur city (M.S.)

Simple random sampling. Systematic random sampling. Stratified random sampling. Cluster sampling.

Convenience sampling. Judgment sampling. Quota sampling. Snowball sampling.

Probability Non-Probability

DATA ANALYSIS:

Analysis of data is the most skilled task of all the stages of any research work.

It is a task calling for the researcher’s own judgment & skill.

Data analysis is a process of gathering, modeling, and transforming data with

the goal of highlighting useful information, suggesting conclusions, and supporting

decision making. Data analysis has multiple facets and approaches, encompassing

diverse techniques under a variety of names, in different business, science, and social

science domains.

Analysis of data in general way involves a number of closely related operations

which are performed with the purpose of summarizing the collected data and

CHAPTER – 06

Data analysis and Interpretations

organizing these in such a manner that they answer the research question(s).

Analysis Process

The proof of the worth of a hypothesis lies in its ability to meet the test of its

validity. So to verify the authenticity of this research work as per the responses given

by the employees, Chi-square test has been applied for the analysis of data.

Chi-Square Test:

Chi-square test is an important test amongst the several tests of significance

which are used. It is symbolically written as χ2It is a statistical measure used in the

context of sampling analysis for comparing a variance to a theoretical variance. This is

a widely used as a non-parametric test in statistical work. This is simple test

distribution which has many applications in situations that involve the testing of

hypothesis concerning qualitative or discrete data. With the help of this test, we are in

a position to know whether a given difference between actual & expectation has been

caused by a chance or whether it has resulted because of the inadequacy of the theory

to fit the observed facts. The following formula helps in obtaining the value of Chi-test

x2=∑❑(Oi−Ei ) 2Ei

Here, O= observed frequency

E= expected frequency

There are 7 steps involved while calculating this value of Chi. they are as follows:

Converting the problem/situation into hypothesis form.

Define expected & find observed frequency table.

Fit the data into the Chi-table.

Calculate value of Chi.

Find out degree of freedom by the formula (r-1) (c-1).

Check the significance level

Compare the calculated & critical value of Chi.

Write the summary statement i.e.

If the calculated value is less than the critical value, then do not reject Ho.

If the calculated value is greater than the critical value, then reject Ho &

accept H1.

Significance level

The community used levels of significance are 5% & 1%.

5% level implies that 95 out of 100 samples are confident that our decision to reject

Ho is correct. This level of significance is always fixed in advance.

In this research work 5% significance level is assumed for the calculation purpose.

Data Interpretation

Interpretation of data refers to that important part of the investigation which is

associated with the drawing of inferences from the collected facts after an analytic

study. It is very important part of study as it makes possible the use of collected data.

Statistical facts have no utility unless they are interpreted properly. This only provides

certain conclusions about the problem under study.

What do you think sales promotion technique use by PATNI automobile helps for

easy to sale bikes?

Strongly agree Agree Neutral Disagree

Strongly disagree

Observed frequency on Response & No. of respondents

No. of

Respondents

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

0 – 10 0 10 3 2 0 15

11 – 20 15 0 0 0 0 15

21 – 30 0 0 0 0 0 0

Total 15 10 3 2 0 30

H0 = Sales Promotion does not helps to make sales easy of the bikes.

H1 = Sales Promotion does helps to make sales easy of the bikes.

Marginal Row Probability:

pr1 = 15/30 = 0.5 pr2 = 15/30= 0.5 pr3 = 0/30 = 0

Column Probability

pc1 = 15/30 = 0.5 pc3 = 3/30 = 0.1 pc5 = 0/30 = 0

pc2 = 10/30 = 0.33 pc4 = 2/30 = 0.06

If the null hypothesis to be true, cell probability for the 1st cell (c1, r1) will be,

(pr1) x (pc1) = 0.5 x 0.5 = 0.25

So the expected frequency for the 1st cell will be, 0.25 x 30 = 7.5

Expected frequency of each table:

No. of

Respondents

Excellent Very Good Good Average Poor Total

0 – 10 7.5 4.95 1.5 0.9 0 14.85

11 – 20 7.5 4.95 1.5 0.9 0 14.85

21 – 30 0 0 0 0 0 0

Total 15 9.9 3 1.8 0 29.7

Degree of Freedom = (c-1) (r-1)

Degree of Freedom = (5-1) (3-1) = 8

d.f. of 8 at 5% significance level is 15.507

Now calculating the value of χ2 = ∑ (0 i−Ei) 2Ei

No. of

Respondents

Excellent Very

Good

Good Average Poor Total

0 – 10 7.5 5.15 1.5 1.34 0 15.49

11 – 20 7.5 4.95 1.5 0.9 0 14.85

21 – 30 0 0 0 0 0 0

Total 15 10.1 3 2.24 0 30.34

Calculated Value of χ 2 > Table Value of χ 2

i.e. 30.34 > 15.507

Therefore, Alternative Hypothesis i.e. H1 is accepted

So from the above calculations we can say that the calculated value of χ 2 =

30.34 which is greater than the critical value of χ 2 for 8 at 5% significance level i.e.

15.507, so H1 is accepted.

Hence, Sales Promotion helps to make sales easy of the bikes.

Sales Promotion helps to increase sales of the bikes?

Strongly agree Agree Neutral Disagree Strongly disagree

Observed frequency on Response & No. of respondents

No. of

Respondents

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

0 – 10 0 10 3 2 0 15

11 – 20 15 0 0 0 0 15

21 – 30 0 0 0 0 0 0

Total 15 10 3 2 0 30

H0 = Sales Promotion does not helps to increase sales of the bikes.

H1 = Sales Promotion helps to increase sales of the bikes.

Marginal Row Probability:

pr1 = 15/30 = 0.5 pr2 = 15/30= 0.5 pr3 = 0/30 = 0

Column Probability

pc1 = 15/30 = 0.5 pc3 = 3/30 = 0.1 pc5 = 0/30 = 0

pc2 = 10/30 = 0.33 pc4 = 2/30 = 0.06

If the null hypothesis to be true, cell probability for the 1st cell (c1, r1) will be,

(pr1) x (pc1) = 0.5 x 0.5 = 0.25

So the expected frequency for the 1st cell will be, 0.25 x 30 = 7.5

Expected frequency of each table:

No. of

Respondents

Excellent Very Good Good Average Poor Total

0 – 10 7.5 4.95 1.5 0.9 0 14.85

11 – 20 7.5 4.95 1.5 0.9 0 14.85

21 – 30 0 0 0 0 0 0

Total 15 9.9 3 1.8 0 29.7

Degree of Freedom = (c-1) (r-1)

Degree of Freedom = (5-1) (3-1) = 8

d.f. of 8 at 5% significance level is 15.507

Now calculating the value of χ2 = ∑ (0 i−Ei) 2Ei

No. of

Respondents

Excellent Very

Good

Good Average Poor Total

0 – 10 7.5 5.15 1.5 1.34 0 15.49

11 – 20 7.5 4.95 1.5 0.9 0 14.85

21 – 30 0 0 0 0 0 0

Total 15 10.1 3 2.24 0 30.34

Calculated Value of χ 2 > Table Value of χ 2

i.e. 30.34 > 15.507

Therefore, Alternative Hypothesis i.e. H1 is accepted.

So from the above calculations we can say that the calculated value of χ 2 =

30.34 which is greater than the critical value of χ 2 for 8 at 5% significance level i.e.

15.507, so H1 is accepted.

Hence, Sales Promotion helps to increase sales of the bikes.

Opinion about sales promotion schemes used by PATNI Automobile for its

dealers?

Excellent Very good Good Average

Poor

Observed frequency on Response & No. of respondents

No. of

Respondents

Excellent Very

Good

Good Average Poor Total

0 – 10 8 0 4 3 0 15

11 – 20 0 15 0 0 0 15

21 – 30 0 0 0 0 0 0

Total 8 15 4 3 0 30

H0 = Negative opinion about sales promotion schemes used by PATNI Automobile for

its dealers.

H1 = Positive opinion about sales promotion schemes used by PATNI Automobile for

its dealers.

Marginal Row Probability:

pr1 = 15/30 = 0.5 pr2 = 15/30= 0.5 pr3 = 0/30 = 0

Column Probability

pc1 = 8/30 = 0.26 pc3 = 4/30 = 0.13 pc5 = 0/30 = 0

pc2 = 15/30 = 0.5 pc4 = 3/30 = 0.1

If the null hypothesis to be true, cell probability for the 1st cell (c1, r1) will be,

(pr1) x (pc1) = 0.5 x 0.26 = 0.13

So the expected frequency for the 1st cell will be, 0.13 x 30 = 3.9

Expected frequency of each table:

No. of

Respondents

Excellent Very Good Good Average Poor Total

0 – 10 3.9 7.5 1.95 1.5 0 14.85

11 – 20 3.9 7.5 1.95 1.5 0 14.85

21 – 30 0 0 0 0 0 0

Total 7.8 15 3.9 3 0 30

Degree of Freedom = (c-1) (r-1)

Degree of Freedom = (5-1) (3-1) = 8

d.f. of 8 at 5% significance level is 15.507

Now calculating the value of χ2 = ∑ (0 i−Ei) 2Ei

No. of

Respondents

Excellent Very

Good

Good Average Poor Total

0 – 10 4.31 7.5 2.15 1.5 0 15.46

11 – 20 3.9 7.5 1.95 1.5 0 14.85

21 – 30 0 0 0 0 0 0

Total 8.21 15 4.1 3 0 30.31

Calculated Value of χ 2 > Table Value of χ 2

i.e. 30.31 > 15.507

Therefore, Alternative Hypothesis i.e. H1 is selected.

So from the above calculations we can say that the calculated value of χ 2 =

30.31 which is greater than the critical value of χ 2 for 8 at 5% significance level i.e.

15.507, so H1 is accepted.

Hence, Dealers have Positive opinion about sales promotion schemes used by PATNI Automobile for its dealers.

Which sales promotion scheme of PATNI Automobile is preferred more by the

dealer’s?

Tour Incentive Seminar Gift

Free display material Sales contest

Table: 1

13%

20%

7%

17%

33%

10%

Number of Respondents

Tour IncentiveSeminarGiftFree display materialSales contest

Figure: 1

Interpretation

From above pie chart it is clear that free display material is much preferred sales

promotion scheme by the dealers. Around 33.33% of dealers preferred free display

material, 20% of dealers preferred Incentive, 16.67% of dealers preferred gifts, 13.33%

of dealers preferred gifts 10% of dealers preferred tour, 6.67% of dealers preferred

seminar as sales promotion scheme.

Sr.No. Sales promotion scheme Number of Respondent

Percentage

1 Tour 4 13.33%

2 Incentive 6 20%

3 Seminar 2 6.67%

4 Gift 5 16.67%

5 Free display material 10 33.33%

6 Sales contest 3 10%

Total 30 100 %

What do you think sales promotion activity really beneficial for PATNI

automobile to increase the sales?

Yes No

Sr. No. Sales promotion activity really beneficial for PATNI

Number of Respondent

Percentage

1 Yes 27 90%

2 No 3 10%

Total 30 100%

Table: 2

Yes No1 2

0

5

10

15

20

25

30

Number of Respondents

Number of Respondent

Figure: 2

Interpretation

From above column chart it is clear that sales promotion activity really beneficial

for PATNI automobile to increase the sales. Nearly 90% of the dealers have opinion

that Sales promotion activity really beneficial for PATNI automobile to increase the

sales hence it can be said that sales promotion fulfill its objective. Only 10% of dealers

have opinion that only Sales promotion activity is not responsible for increase in sales.

What do you think sales promotion schemes used by PATNI Automobile attract

you towards the company?

Yes No

Sr. No. sales promotion schemes used by PATNI Automobile attract dealers

Number of Respondent Percentage

1 Yes 25 83.33%

2 No 5 16.66%

Total 30 100%

Table: 3

Yes No1 2

0

5

10

15

20

25

30

25

5

Number of Respondents

Number of Respondent

Figure: 3

Interpretation

From above column chart it is clear that sales promotion schemes used by PATNI

Automobile attract dealers towards the company. Nearly 83.33% of the dealers have

opinion that sales promotion schemes used by PATNI Automobile attract dealers

towards the company and 16.66% of dealers have opinion that they are not attracted

towards the company just because of sales promotion schemes.

What do you think sales promotion helps to retain customer?

Favor Against

Sr. No. sales promotion helps to retain customer Number of Respondent

Percentage

1 Favor 13 43.33%

2 Against 17 56.67%

Total 30 100%

Table: 4

43%

57%

Number of RespondentsFavor Against

Figure: 4

Interpretation

From above pie chart it is clear that dealers have nearly mixed opinion about the

retaining of the customer with the help of sales promotion schemes. Nearly 43.33% of

dealers have opinion that sales promotion schemes help to retain the customer and

56.67% of dealers have opinion that sales promotion schemes does not help to retain

the customer. Hence can say that, can not fully neglect that sales promotion schemes

helps to attract the customers.

Do you think sales promotion helps to create awareness amongst customer?

Yes No

Sr. No. sales promotion helps to retain customer Number of Respondent Percentage

1 Yes 10 33.33%

2 No 20 66.67%

Total 30 100%

Table: 5

YesNo

02468

101214161820

Number of Respondents

Number of Respondent

Figure: 5

Interpretation

From above column chart it is clear that dealers opinion that sales promotion

does not helps to create awareness amongst customer at higher extent but it is not

negligible also. 33.33% of dealers have opinion that that sales promotion does helps to

create awareness amongst customer whereas 66.67% of dealers have opinion that sales

promotion does not helps to create awareness amongst customer. Hence it is not

possible to say that sales promotion does not create awareness but it helps at very

lower extent.

Please give rating to the following Sales promotional techniques used by Patni

automobile company for the dealers. According to its effectiveness?

Sr. no. Activities Excellent Very Good Good Average Poor

1 Bonuses 15 10 5

2 Free display material 10 8 6 4 2

3 Buying allowances 12 6 4 5 3

4 Discounts 22 6 2

5 Dealers Gifts 24 4 2

6 Credit facility 8 10 6 4 2

7 Price deals 10 10 10

8 Tour 20 6 4

9 Seminar 20 7 3

10 Free demonstration &

trial at shop

14 8 5 2 1

Bonuses

Free d

isplay

mate

rial

Buying a

llowan

ces

Discounts

Dealer

s Gifts

Credit f

acility

Price

deals

Tour

Seminar

Free d

emonstr

ation &

trial

at sh

op0

5

10

15

20

25

30

35

PoorAverageGoodVery Good Excellent

Interpretation:

From above column chart it is clear that Gift, Tour, Seminar, Discount much

preferred by the dealers of PATNI Automobile. For Gift out of 30 respondents, 24

dealers say excellent, 4 very good, 2 good. For Discount out of 30 respondent, 22

dealers say excellent, 6 very good, 2 good. For Seminar out of 30 respondents 20

dealers say excellent, 7 very good, 3 good. For Tour out of 30 respondents 20 dealers

say excellent, 6 very good, 4 good. For Bonus out of 30 respondents 15 dealers say

excellent, 10 very good, 5 good. For Free demonstration & trial at shop out of 30

respondents 14 dealers say excellent, 8 very good, 5 good, 2 average, 1 poor. For

Credit facility out of 30 respondents 8 dealers say excellent, 10 very good, 6 good, 4

average, 2 poor. For Buying allowances out of 30 respondents 12 dealers say excellent,

6 very good, 4 good, 5 average, 3 poor

CONCLUSION

Sales promotion is found to be an important tool to attract dealers and hence it

has helped the PATNI Automobile to push its product (bike) in the market

through dealers.

Sales promotion is beneficial for the PATNI Automobile it helps to increase the

sales of the Bajaj Bikes.

PATNI Automobile uses different types of sales promotional

techniques for its Bajaj bikes like cash incentives, gifts, price

discount, tour, seminars, exchange offer etc. The researcher found

CHAPTER – 07

Conclusion

that the free display material is widely used by Patni automobile for its sales

promotion activity.

The sales promotion tools have helped satisfactorily to the Dealers to achieve

their sales target in the campaigning month also it was analyzed that the sales

has increased drastically only because of the various sales promotion activity

carried out by Patni Automobile.

Based on the above research work the following recommendations are made to the PATNI Automobile.

Sales promotion help to increase the sale of the bikes of PATNI Automobile

hence need to launch such sales promotion schemes periodically (i.e., at regular

interval of time).

Sales Promotion Schemes like, seminars for dealers, gifts, exchange etc. need

to be used quite frequently.

Need to spread business hence need to focus on the rural areas nearby Nagpur

city.

CHAPTER – 08

Recommendations

Following are the limitationse of the research work

CHAPTER – 9

Limitations

Due to time constraint, the research work and survey was conducted over 30

dealers only.

This research work is done with reference to Nagpur city. Hence it has scope of

study in other regions which may result differently.

Accuracy of the result is less due to small sample size. Hence the study

provides scope to get reliable results by using large sample size.

While conducting survey some respondents hesitate to respond, it creates

problem in research work to collect data.

This research work confide to dealers only there should be no involvement of

customers hence there’s a research scope to do the research by involving

customers.

Further Readings

Beri G.C. (2008), “Marketing Research”, Tata McGraw-Hill Publication, 4th

Edition, Pg No.235-245, 280, 311-314

Kothari C.R. (2004), “Research Methodology Methods”, New Age

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JOURNALS:

Bibliography

Alexander Preko (2012), “The Effect of Sales Promotion on TV Advertising”, Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3 (2) (ISSN: 2141-7024)

Dr. Sikroria Rajiv (2008), “Exploring Promotional Mix in Indian Rural Market”, International Journal of Business and Management Cases Vol. 1 No. 2

Dr Sadashiv. P. Kalyankar (2012), “EFFECT OF SALES PROMOTION ACTIVITIES ON SALES VOLUME OF COMMERCIAL VEHICLE DEALERS IN VIDHARBHA”, ASM’s International E-Journal of Ongoing Research in Management and IT e-ISSN-2320-0065

Kim-Shyan Fam (New Zealand), Lin Yang (New Zealand), Innovative sales promotion techniques among Hong Kongadvertisers – a content analysis, Innovative Marketing, Volume 4, Issue 1, 2008

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WEBSITE

www.internationaljournalofmarketing.Com Date 22/8/2012 Time 11.00 am

http://www.essays.se/about/literature+review+of+sales+promotion/ Date

23/8/2012 Time 10.00 pm

http://www.iimahd.ernet.in/publications/data/2007-11-02Vyas.pdf Date

28/8/2012 Time 2.00 pm

http://iipalibrary.in/iipa/pdf/2010mar15.pdf Date 28/8/2012 Time 9.00 pm

http://www.freshpromotions.com.au/the-history-of-promotions.html Date

10/1/2013 Time 10.35am

gala-news.com/marketing/5-10-methods-of-sale-promotion.html Date

15/1/2013 Time 10.17am

www.bajajauto.com Date 25/1/2013 Time 10.30 pm

QUESTIONNAIRE FOR DEALERS

Dear Respondent,

I am conducting the survey on sales promotion tools used by PATNI

Automobile for Dealers for its Bajaj Bike. It would be very grateful if you could fill

Annexure

up the following questionnaire in this regard.

Respondent: -------------------------------------

Address: ---------------------------------------------

Que1) Which sales promotion scheme of PATNI Automobile is preferred more by the

dealer’s.

Tour Incentive Seminar Gift

Free display material Sales contest

Que2) What do you think sales promotion technique use by PATNI automobile helps

for easy to sale bikes?

Strongly agree Agree Neutral Disagree

Strongly disagree

Que3) Sales Promotion helps to increase sales of the bikes?

Strongly agree Agree Neutral Disagree

Strongly disagree

Que4) In campaigning month how much you achieved your target?

Excellent Very Good Good Average Poor

Que5) What do you think sales promotion activity really beneficial for PATNI

automobile to increase the sales?

Yes No

Que6) Please give rating to the following Sales promotional techniques used by

PATNI automobile company for the dealers. According to its effectiveness?

Sr. no. Activities Excellent Very

Good

Good Average Poor

1 Bonuses

2 Free display material

3 Buying allowances

4 Discounts

5 Dealers Gifts

6 Credit facility

7 Price deals

8 Tour

9 Seminar

10 Free demonstration &trial

at shop

Que7) What do you think sales promotion schemes used by PATNI Automobile

attract you towards the company?

Yes No

Que8) What do you think sales promotion helps to retain customer?

Favor Against

Que9) Opinion about sales promotion schemes used by PATNI Automobile for its

dealers?

Excellent Very Good Good Average Poor

Que10) Do you think sales promotion helps to create awareness amongst customer?

Yes No