Project Title A Market Study On Sales Promotion at Sri Sai Tvs Motors

PROJECT TITLE
A MARKET STUDY ON SALES PROMOTION
AT SRI SAI TVS MOTORS
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CONTENTS
Page no:
CHAPTER-I
INTRODUCTION 03
 Need for the study
 Objectives of the study
 Research methodology
 Scope of the study
 Limitations of the study
CHAPTER-II 06
COMPANY PROFILE
CHAPTER-III 15
LITERATURE REVIEW
CHAPTER-IV 35
DATA ANALYSIS
CHAPTER-V 56
FINDINGS
CONCLUSIONS& SUGGETIONS
QUESTIONNAIRE
BIBLIOGRAPHY
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CHAPTER-I
INTRODUCTION
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INTRODUCTION
NEED FOR THE STUDY
This particular topic is chosen because every organization required sales promotion
and distribution to promote their product and services. Sales promotions and
distribution are playing a vital role in today's market. So it is important to know how
far these promotional activities are creating brand awareness in the minds of the
customer and influencing them to go for the products and services and also the need
to increase the quality, creativity and utilization of technology in the distribution and
sales promotions.
OBJECTIVES OF THE STUDY
 To find out the opinion of customer about the perfect promotion technique.
 To find out the opinion of the customer on the subject, sales promotion.
 To find out the ways to promote the product so that it reaches the high
standards.
 To know how well the product TVS is doing well in the market.
 To know how well the product TVS is withstanding on their words, which
makes it to increase the sales.
 To determine the share of the TVS in two-wheeler by directly questioning the
customer.
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RESEARCH METHODOLOGY
1. DEFINING THE PROBLEM
This involves developing and understanding of the problem. The research need not be
undertaken only for a problem but also for opportunities and this study an attempt has
been made to understand Sales Promotion towards TVS Motor Company.
2. DATA COLLECTION & PROCESSING
The data has to be collected by the methods predetermined; the primary data has been
collected through well designed questionnaire and personal interviews. Secondary
data is collected through various books i.e Marketing.
3. SOURCES OF DATA
The data has been collected from two sources i.e primary & secondary data.
a) Primary Source
This is through a well designed questionnaire.
b) Secondary Source
The secondary source was collected from the profile of the organization, catalogues
and various books.
SCOPE OF THE STUDY
The scope of the study is confined to all the customers of TVS Company.
LIMITATIONS OF THE STUDY
The limitations of the study are restricted within the twin cities of Hyderabad and
Secunderabad.
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CHAPTER-II
COMPANY PROFILE
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COMPANY PROFILE
TVS Group
The TVS Group is one of India's largest industrial conglomerates. TV Sundaram
Iyengar and Sons Limited, established in 1 9 1 1 , is the parent and holding
company of the TVS Group.
The largest automobile distribution company in India, TVS & Sons has an annual
turnover exceeding US$ 450 million (over Rs. 16,000 million), with a workforce of
over 5000, TV Sundaram lyengar and Sons Limited operate through the three
following divisions;
TVS
Sundaram Motors Madras Auto Service
TVS and Sons distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It
represents premier automotive companies like Ashok Leyland, Mahindra and
Mahindra Ltd., Fiat and Honda. It also distributes automotive spare pans for
several leading manufacturers.
TVS & Sons has grown into a leading logistics solution provider and has set up
state-of-the-art warehouses all over the country.
It has also diversified into distributing Garage equipment that ranges from paint
booths to engine analyzers and industrial equipment products.
With steady growth, expansion and diversification, today TVS commands a strong
presence in various fields-two-wheelers, automotive components, automotive spares,
computer peripherals and finance.
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TVS Motor Company
TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-
wheeler manufacturers. With a turnover of over Rs.2800 crores, the Company
manufactures a wide range of motorcycles, scooters, mopeds.
With (he joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became
the first Indian company to introduce 100 cc Indo-Japanese motorcycles in
September 1984. Through an amicable agreement the two companies parted ways in
September 2001.
Today TVS Motor Company has the largest market share in the moped category and is
also the undisputed leader in the scooterette segment. It also holds a considerable
market share-in motorcycles.
With a strong sales and service network of 500 Authorized Dealerships, 1018
Authorized Service Centers and over 864 Certified Service Points, TVS is growing from
strength to strength. The company manufactures its motorcycles, scooters and mopeds
at its state-of-the-art factories in Mysore and Hosur.
Various TVS two-wheelers
TVS offers a wide range of two-wheelers:
Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100 / TVS
Max 100R
 Scooterettes - TVS Scooty Pep/ TVS Scooty 2S
 Mopeds - TVS XL Super/ TVS XL Super HD
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Vision
TVS Motor will be responsive to customer requirements consonant with its core
competence and profitability. TVS Motor will provide total customer satisfaction by
giving the customer the right product, at the right price, at the right time.
TVS Motor will be one among (he top two two-wheeler manufacturers in India and
one among the top five two-wheeler manufacturers in Asia.
TVS Motor will have profitable operations overseas especially in Asian markets,
capitalizing on the expertise developed in the areas of manufacturing, technology and
marketing. The thrust will be to achieve a significant share for international business in
the total turnover. TVS Motor will hone and sustain its cutting edge of
technology by constant benchmarking against international leaders.
Introduced India's first catalytic converter enabled motorcycle, the 100cc
Shogun in Dec1996.
Launched India's first 5-spectl motorcycle, the Shoaling in Oct 1997.
Launched India's first high performance moped - the XL Super, with a 70
cc engine in Nov 1997.
Launched Victor in August 2001, a world-class 4-stroke 1 10 cc motorcycle.
Launched Centra in January 2004, a world-class 4-stroke 100 cc motorcycle
with Engines for best-in-class mileage.
Technology
TVS Motor Company's R&D division has an imposing pool of talent and one of
the most contemporary labs, capable of developing innovative designs. Committed
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to achieving total customer satisfaction through Total Quality Control (TQC),
the Company continuously strives to give the customer, the best value for money.
TVS is committed to protecting (his environment. The company's manufacturing
facilities at my sore & Hosur have state-of-the-art facilities & air pollution control
measures. Even the suppliers are encouraged to ensure that their products meet
eco-friendly norms.
 Launched TVS 50, India's first 2-seater, 50cc Moped in Aug 1980.
 First Indian Company to introduce l00cc Indo-Japanese motorcycles in
Sept 1984.
 Launched India's first indigenous Scooterette, TVS Scooty in June 1994.
 Introduced India’s first catalytic converter enabled motorcycle, the
100cc Shogun in Dec 1996.
 Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.
 Launched India's first high performance moped - the XL Super, with a 70
cc engine in Nov 1997.
 Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.
Awards
TVS Motor is the third Indian company to win the Doming Prize. Only two other
TVS companies have managed this before.
It's been a long time since the Doming Prize was instituted by the Union of
Japanese Scientists and Engineers. But very, very few organizations outside Japan
have had the honor of receiving it.
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In fact, the TVS Motor Company is the world's first motorcycle company to be
awarded the prize. As for the TVS Group, it's a third. Sundaram-Clayton Ltd.
(Brakes Division) and Sundaram Brake Linings Ltd. have already won it.
The Doming Prize is the ultimate confirmation of our commitment to quality
control.
Sri Sai TVS Motors:
Details of Sri Sai Motors
Sri Sai motors is established in the year 1997 at chandanagar It was started as a
sub dealer to the TVS motors.
It has got the authorized main dealership in the year 2003 for its excellent
performance in increasing of sales & promotion and gaining huge customer
satisfaction. And it is ranked number 2nd in A.P.
It has got a total of 8 sub dealers in i t s in chain of dealers. The total number of
employees involved in the process of gaining the customer satisfaction is 50 and
these 50 numbers include administration staff sales executives and service men in
the workshop.
Sri Sai motors is headed by Mr. Narashimmha Reddy as proprietor and Mr.
Padmanabham sir (Sales Personnel).
Number of sales persons in Sri Sai motors is six.
Sri Sai motors sell total eight types of two wheelers each one divided into two
types.
Details of Sales
 The minimum number of two-wheelers which are sold by Sri Sai motors
is more than 300 per month.
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 Sri Sai motors provides various bikes for different people.
(a) TVS F2 or Victor GLX -Youth
(b) TVS Centra or TVS Star - Business people
(c) Victor Ax -Family
The range of prices for TVS two wheelers bikes starts from 36,000 to
56,000/-.The lowest priced TVS two wheeler that is XL Super.
 Sri Sai motors offers Exchange Mela of bikes for two wheelers to satisfy the
customer convenience of various two-wheelers. It also offers test ride.
 The registration of the two wheelers is done by the agents who are in touch
with Sri Sai motors.
 It also provides Two-Wheeler loans from respective banks like
ICICI, HDFC for the customer convenience with lowest rate of
interest rate of payment.
 The rate of interest charged on customer will depend on the amount he paid
and loan period.
(a) For employee 7% per annum.
(b) For business person
(c) 7.7% or 8.8% per annum.
Sri Sai motors generate various sales reports
1. Weekly sales reports
2. Monthly sales reports [ 1 -31st ]
3. Mid week sales report [from Friday to Tuesday]
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Sales are likely to be increased after the financial year i.e. after the budget of
every year is announced. December is the off season for sales and percentage
of sales is more for motor bikes.
Details about the Two-Wheelers
 All TVS Two-Wheeler motors are manufactured with pure Indian
Technology with not foreign collaboration. The main manufacturing unit of
TVS Motors is located in Tamil Nadu.
 The maintenance cost of TVS two wheeler is zero and the cost of spare
parts is very less when compare with other two wheeler spare parts. The
main competitors of TVS two wheelers are the two wheelers from the Hero
Honda. The minimum warranty of engine is two years.
 TVS two wheeler are manufactured with the CC & BHP.
BHP - Break Horse Power
CC - Centrifugal Force of Engine
RMP - Revolution per Minute
Details of Work Shop (Service Department)
The workshop or service department has the following
Customer Lounge:
Customer lounge is a place where to complete the customer are asked to wait for
this service to entertain the customer the administration had provided Television
and newspapers.
Supervisor cabin:
There is one supervisor who is the head of the service department .He looks after
the whole service department and is responsible for preparing the job card.
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Engine Room:
There is a separate cabin called engine room for the repair room for the repair
works of the engine.
Water Room:
There is a separate block to wash the vehicles .A total of 30-40 vehicles are
serviced here.
Mechanics:
There are total of 8 automatic benches for service with 4 senior mechanics
who are well trained.
Job Card:
Job Card contains the details of the vehicle like, engine number, model, customer,
problem, amount of service, amount for spare parts, date and time of delivery.
Spare Parts:
A well versed spare parts block contains different racks for different models of
Vehicles.
Go down:
There is also one huge Go down which has the capacity of putting a maximum of 150
vehicles.
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CHAPTER-III
LITERATURE REVIEW
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LITERATURE REVIEW
Sales Promotions
Sales Promotions consist of many devices aimed at generating active Customer
response within a short period of time. Interestingly, most of the effort has been
receiving an increasingly large share of the advertising/Promotion budget, particularly
for Promotion oriented toward the trade.
Coupons and Promotions play a large role on the web as well. Over 50
percent of both first time and repeat buyers were influenced by either coupons
or free shipping. Promotion competes with advertising for budget it also
provides a different approach to influencing sales. In the case of advertising, the
basic approach is to create or increase a desire on the part of the Customer for
the product itself. In contrast, most Promotions implicitly assume the level of
desire for the product is fixed and try to "close the deal " by providing incentives to
purchase.
This is, of course, an oversimplification. A" get them while supplies last" ad focuses
on immediate response, and Promotions, Involving free samples aim at generating
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repeat business. Nonetheless, Promotions, many of which involve temporary price
reductions, are seen as a form of marketing effort that is more aggressive and oriented
toward immediate results. In reality, one if the few ways product managers can obtain
a short run change in sales or market share is to use sales Promotion activities.
In general Promotion falls in to three main categories:
1. Final Customer Promotion
2. Manufacturer Promotion to the channels or Trade Promotion.
3. Channel originated Promotion, or Retailer Promotion.
Final Customer Promotion comes directly to the Customer from the manufacturer.
Trade Promotion, in contrast, is directed at intermediate channels of distribution in an
attempt both to get them to buy more of a product and to commit their own effort to
"pushing" the product through the nest channel and ultimately to the consumer.
Channel-originated Promotions are run by the channel itself to either the next channel
in the distribution chain or to final Customers.
For consumer packaged goods sold through supermarkets, retailer Promotions are an
especially visible form of Promotions. Displays, feature advertising, and price deals
(price cuts, free merchandise, and retailer-issued coupons) all affect sales and profits
and either augment or detract from manufacturers direct Customer Promotions. In
general, the purpose of channel Promotions is to increase sales pf all products to the
Customer.
Promotion objectives and programs may be gathering offensive, or defensive.
Offensive Promotion attempt to gain an advantage through exclusively: being the only
company to offer a particular Promotion or level of Promotion support. In most
markets, how ever, competitors quickly match Promotions. On top of that, in some
areas, notably consumer packaged goods; the channels have become sufficiently
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powerful to both demand and schedule Promotions. The result is that companies,
including those with household brand names and dominant market shares, are
promoting due more to a perceived necessity to match competition and satisfy the
channels than to a conviction that Promotions benefit the manufacturer.
Many types of consumer products, service and industrial products use sales promotion
devices extensively. Short-term price discounts to consumers are very common in
industrial markets. In addition, farm equipment and office
Products manufacturers, for example, frequently target channel members for
promotions which may or may not passed on to the customers.
Simplified Channel and Promotion Structure
PROMOTIOM OBJECTIVES
Final Customer Promotions
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Final Customer Promotion, at least for existing or mature products, typically
takes a short-run view. Even when the focus as long-run, such as to generate trial,
the operational objective of most Promotion is to generate immediate response
in the form of sales. The possible advertising objective range from generating
awareness to increasing product understanding to improving attitude towards
purchase. In principle, Promotion can be directed toward any of those goals.
Customer Promotion Objectives
Objective Programming Typical

I .Long-run(relationship building)
A. Awareness enhancement Sweepstakes, contest, tie-ins
B. Image enhancement Sponsorships
II. Short-run (transactional)
A. Current Customers
1. Buy More Volume discounts/special “value”
2. Be more loyal packages
3. Buy now Coupons, premiums. Frequent buyer
B. Occasional Customers(deal Programs Rebates, coupons
prone, brand switchers)
Capture next purchase
C. Non Customers Coupons, display, rebates
Trial sizes sampling
If awareness is the problem, a company can run a Promotion such as a game or
sweepstakes designed to increase awareness of a product rather than to increase
immediate sales. Similarly, a company can run a tie-in Promotion that may, in
addition to raising current sales, have a residual positive impact on brand image.
Such relationship-building motives, however, account for only a small percentage
of the Promotion. Once awareness of the product is met then to improve the sales,
is it recommended that to go for the promotion objectives that are listed above.
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By far the most common objective of a consumer Promotion is a short-run goal to
generate more transactions in a short period of time. The objective are implemented in
two ways, first we need to specify from what level sales should increase. The easiest
benchmark is last year or last period; the more difficult measure, but one from which
the true success of the program should be gauged, is what sales would be absent the
Promotion Second, we must select the target Customer and define desired behavior.
Basically, you ca focus on getting current Customers to buy more, capturing
occasional but not loyal Customers, or generating sales from current Non Customers.
Many Promotions focus on current Customers, attempting to get them to buy more
through a -volume discount, to be more loyal, or to accelerate their purchases and buy
sooner. Attracting occasional Customers, typically through temporary price cuts such
as coupons and rebates, is effective but also expensive. This is not only produces
lower margins on the sales to occasional Customers but may also lower margins on
sales that would have been made in the absence of the Promotion to either occasional
or regular Customers. Hence a major concern ids how to target Promotions o
competitor's Customer alone. Promotions to non Customers are generally used when a
product is new to generate trial. In a sense, targeting non Customers implies a long-
run relationship-building objective. In addition to their sales-generating role,
selectively distributed Promotions provide a legal means of price discrimination.
Special coupons may act as price discriminators as much as sales promoters.
Similarly, different sale price can be offered to target groups in catalogs based on
their past purchasing behavior.
TRADE PROMOTIONS
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The objectives of trade Promotions basically fall into three main categories.
Objective Typical Programs
Transactional: increase stocking levels Volume allowances Financing terms
Discount/price cuts Slotting allowances

Transactional: increase sales efforts Advertising Display allowances Premiums
allowances Contests
Relationship building Free goods
Relationship building
The first category focuses on getting the trade to buy or stock the product in greater
quantities by offering various financial incentives. The second category tries to
increase the level of trade support given to the product by means other than
increasing their inventories. A variety of allowances and direct incentives relate to this
task. The final set of objectives involves relationship building, a longer-term
objective. One example of relationship-building is t give extra product to a channel
with no explicit strings attached.
An important type of trade Promotion involves participating in trade shows.
One major purpose of trade shows is to entice current and potential channel
members to carry a product. Trade shows are a great business in their own right.
Participants have multiple objectives, including image enhancement, new-product
introduction, and competitor monitoring.
Promotion Budgeting Total Advertising and Promotion Budget
Seven factors have been found to effect the total budget for advertising and sales
Promotion for manufactured products .Companies spend more on Promotion and
advertising relative to sales when
1. The product is relatively standardized.
2. There are many end users.
3. The typical purchase amount is small
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4. Sales are made through channel intermediate than directly to end
users.
5. The product is premium priced.
6. The product has a high contribution margin.
7. The product or service has a small market share.
ADVERTISING AND PROMOTION
Several factors affect this allocation decision. First, the total amount of resources
available has a major impact. If the marketing budget is small, extensive media
advertising is usually not worthwhile unless the target market is local and can be
reached by media such as radio and newspapers, because advertising usually needs a
minimum or threshold amount to have any impact. Beneath the threshold value, the
money is virtually wasted. In such cases, spending the budget on sales Promotion
results in a greater market impact than advertising. Second, Customer factors affect
allocation decisions. One relevant aspect of Customer behavior is the degree of brand
loyalty. Promotion money spent on a product or service exhibiting high levels of
loyally rewards primarily existing Customers. Although this may be what the product
manager wants, it is usually not the best way to spend money. If Customer's are not
very loyal, the product manager should try to understand if their behavior is endemic
to the category; if so, there may be an opportunity to attract brand switchers with
Promotions. It is also possible, however that the product manager has created non-
loyal Customers through frequent, price-based Promotions, and thus all that happens
is a temporary swapping of Customers.
A second relevant aspect of consumer behavior is the type of decision required of
them. If the product is complex and therefore requires a fair amount of information
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processing, more should be spent on advertising because it is better communications
device. Alternatively, most sales promotion amount is spent on product categories in
which decision making is routine and involves little processing of information about
the product.
A third factor affecting allocation decisions is whether advertising and promotion
amount high the unique aspects of the product, consumer franchise building (CFB)
aspects. CFB activities are those that build brand equity, including advertising,
sampling, coupon, and product demonstrations. Non-CFB activities focus on price
alone and include trade promotions, short-term price deals, and refunds.
TYPES OF FINAL CUSTOMER PROMOTIONS
Deciding on which Promotion element to employ in many ways parallels the media
selection process in advertising
CONSUMER PROMOTIONS
I. Product based
A. Additional volume/bonus pack
B. Samples
1. Central location
2. Direct(e.g., mail)
3. Attachment (in-/-on-pack)
4. Media placed (clip-and-send coupons)
II. Price based
A. Sale price
B. Coupons
1. Central location
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2. Direct (mail)
3. Attachment (in-/-on-pack)
4. In media (e.g., websites)
C. Refind/rebates
D. Financing
E. Frequent
III. Premiums
IV. Place-based Promotions(physical '1;splays; Internet site based)
V. Games (sweepstakes, contests)
PRODUCT-BASED PROMOTIONS
One obvious category of Promotions is to give away the product itself. Extra volume
packages bare common in consumer products. Even more dramatic are completely
free products. Coupons for free goods show up in the mail, on or in packages of the
good, or in media vehicles. Computer hardware and software companies often give
free copies of their products to select Customers as "beta" test sites to help get any
bugs out and stimulate early word of mouth. Sampling has the obvious benefit of
stimulating product trial because it gives the shortcomings. First, it is very expensive.
Second, it may not target the right potential Customers; people who distribute free
samples in supermarkets or on street corners are not very discriminating about to
whom they give the product
PRICED-BASED PROMOTIONS
Another obvious type of Promotion involves price. The use of sale price is
understated if we describe them as being "widespread". Unfortunately, most short-
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term price reductions are not narrowly targeted because all buyers, including
extremely brand-loyal ones, have access to in-store price reductions.
More targeted price reductions that require at least some effort on the part of the
consumer involve coupons. Coupons are one of the very few ways to legally
implement price discrimination, that is, charge different prices to segments with
different sensitivities to price by delivering targeted coupons. The use of attachment
coupons allows a more focused price cut, though outright theft and trading of coupons
are common As just noted one advantage of coupons is that they can be delivered by
mail, at the cash register, or even through the Internet to carefully targeted audiences.
In addition, because they normally have to be cut out and physically carried to the
point of transactions, coupons require more commitment to purchase the product, and
thus may engender more repeat purchases. They are also flexible because they can be
designated for larger package sizes, a now flavor extension, and the like.
Other, price-based consumer Promotion is also options. Refunds and rebates are
common and effective, though the long-run effects may be negative. Frequent user
programs such as those offered by supermarkets, sporting goods stores etc, are useful
for encouraging brand loyalty and allow consumers to buy products at a discount after
they have accumulated a sufficient number of points.
OTHER CUSTOMER PROMOTIONS
In addition to product - and price-based Promotions, other elements of the marketing
mix can be used to meet company objectives. Point-of-purchase displays are common;
notice the checkout and end-of-aisle displays at any supermarket. One popular form
of place-based Promotion is the exposition at which manufacturers congregate to
display and sell their wares. Another inducement to purchase is free service. In
addition, various premiums have proven effective.
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TYPES OF TRADE PROMOTIONS:
Trade Promotions are directed not to the final Customer but to the channels through
which the goods are sold. Like consumer Promotions, they can be broken into five
categories
Trade Promotions
I. Product based
A. Free goods
B. Consignment/returns policy
II. Price based
A. Buying allowances
B. Financial terms
III Place based
A. Slotting allowances
B. Display allowances
C. Warehousing/delivery assistance
IV Advertising and promotion based
A. Co-op advertising
B. Selling aids
C. Co-op selling
V Sales based
A. Bonuses and incentives
B. Contents and prizes
Product-based Promotions include free goods and generous returns policies.
Returns policies allow the channel to return unsold merchandise for a full or partial
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refund, reducing the risk of carrying the product. Price deals include various volume
discounts and allowances, as well as financing terms such as long period of time
before payment is due or below-market interest rates.
Place-based allowances are especially for consumer packaged goods. Slotting
allowances, which are basically payments for placing a product on the shelf, have
become increasingly important as power has shifted from manufacturers to retailers.
These fees charged to manufactures have had a negative effect on the number of
competitors in many product categories and have been particularly hard on small
companies, for which the fees can become prohibitive. Display allowances
compensate retailers for prominent display of goods.
Other Promotion involve reducing inventory and transportation costs by either
warehousing the goods for the channel or paying all or part of delivery charges.
Providing selling assistance is also common. In addition to selling aids companies
often provide cooperative advertising, sharing the channel's advertising expense.
EVALUATING CUSTOMER PROMOTIONS
The easiest approach to evaluating Customer Promotion is to simply look at
incremental results during the period of Promotion. This method provides a useful
starting point, but may lead to an overestimate of the benefit of Promotion because it
ignores both where the sales come from and the long-term consequences of
Promotion. As with evaluating advertising effects, a standard approach to measuring
the impact of sales Promotion is tracking.
EVALUATING SALES PROMOTION: TRACKING STUDIES
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As shown in above picture of simple tracking approach with point A on horizontal
axis representing the time when the Promotion say, a price reduction -is given to
end consumers. Tracking studies such as these are used frequently because the
effects of sales Promotion often show up quickly. Unfortunately, product managers
tend to look at the shaded above point a as shown. The simple analysis could be made
is the gain could be offset by the crosshatched "dip" at point B,
representing the possibility that consumers have increased their inventories at home,
thus negating the need to rebuy soon.
The gain must be evaluated relative to a base amount: the amount of sales that would
have been generated had the Promotion not to run. This base line calculation is
some what difficult because it will change by the time.
The analysis does not account for other factors in the marketplace, including
actions by both the product in question and the competition.
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Product managers must carefully examine point C. The point at which sales seem to
return to "normal"; it could be higher than the base for some period of time,
representing a positive long-run effect.
If products have several Promotions running simultaneously, it is difficult to separate
the effects of one Promotion from another.
SHORT-RUN EVALUATION
Sales increase from Promotions may be generated by accelerating purchasing by loyal
buyers. Many coupon redeemers, May be Customers who would have bought the
product anyway and simply used the coupon as "found of money" or, at best, bought
the products somewhat sooner than they would have in the absence of a Promotion.
Basically, a coupon can have several incremental impacts:
1. Accelerated regular purchase—that is, regular buyers of the brand
simply buy sooner
2. Accelerated captured purchases—purchases that neither would have
bought at the time nor bought the promoted brand but are persuaded to
do both by the Promotion.
3. Uncelebrated regular purchases—regular buyers who use the coupon
as a "bonus" price cut.
4. Uncelebrated regular purchases—purchases of other brands who
switch to the promoted brand because of the Promotion.
Obviously, categories 2 and 4 are pluses and category 1 also represents incremental
sales, albeit borrowed ones. Category 3 is basically a negative. Category 1 is
potentially but not necessarily negative. If subsequent sales are depressed as a result
of increased inventory, there is no benefit and a clear cost. Of course, one possible
benefit of Promotion is that "captured" buyers will remain loyal and repeat purchase
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the promoted brand on a subsequent purchase occasion. It is possible that Promotion
increases category purchase quantity, either with or without depressing future
purchase quantity. Interestingly, considerable evidence seems to suggest that
increased quantity due to Promotion is neither preceded nor fallowed by decreased
quantity purchased.
To assess the value of Promotion, then it is necessary to estimate both the source of
additional sales and its overall magnitude. In addition, the profit consequences of each
need to be considered. Some Promotions have lower redemption rates than others that
are freestanding insert coupons versus on-pack or register a price discount, which
lessen their negative impact on profit margins but at the same time decreases their
impact on quantity. The main point here is that it is possible to estimate the impact of
a Promotion through systematic analysis and that the results of such analysis are often
quite sobering.
In addition to the direct effects of manufacturer Promotions on Customer, the
Promotion has an indirect impact on channel (retailer) behavior. Notice that a major
factor affecting the profitability of Promotions is whether or not a good is easily
stockpiled. Perishable goods and services cannot be stockpiled and hence paper towel
Promotions tend to result in stockpiling, and, if Promotion is matched by competitors,
actually lead to lower profits. In contrast, Promotions on underused services or
perishable goods may produce increasing profits.
LONG-RUN CONCERNS
Promotion also has two important long-run impacts. First is the impact of Promotion
on Customer perceptions of the brand. Brand bought on Promotion may be seen as
lower in quality and, the extreme, something it make sense to buy only on deal. A
30
recent study suggests when long-run negative impacts are considered, the total
positive impact of a Promotion is only one-third its short-run impact.
COMPETITIVE REACTION
There is also concern about the impact of Promotions on competitors. Most markets
are oligopolies, and hence decisions need to take likely competitive reactions into
account. Not surprisingly competitors often match Promotions quickly, thus negating
many of the possible benefits while increasing costs. A Promotion spiral can ensue
with great benefit to Customers and harm to companies profits.
PROMOTION EFFECTS
Scanner data have been used extensively to assess the effects of Promotion on buying
behavior. We know consumers use coupons extensively. Further, while some
consumers purchase at regular intervals, some accelerate purchases and stockpile
goods in response to Promotions.
Given the prevalence of scanner data for supermarket and drugstore products, it is not
surprising that a large number of models have been developed to use them to asses the
impact of marketing variables such as Promotion or assuming primary demand
(market size) is constant on share. The models generally assess the value of each
brand to an individual Customer as a function of several components:
1. The inherent value of a brand-size combination. This is either treated holistically or
further decomposed into product attributes.
2. The non-product marketing mix elements: price, Promotion, the amount
of the Promotion, and advertising.
3. Carryover effects of past purchases.
4. Customer loyalty or inertia
31
Scanner data are not a perfect means for assessing the impact of Promotions. They
generally include only household-level data, do not cover purchases at non-scanned
stores, and exclude many potential influences on sales. They are, however, a useful
and unobtrusive means for evaluating both natural and controlled experiments.
Scanner data are increasingly being used to compare different Promotions and provide
directional guidance to managers.
The impact of Promotion to the most is based on analysis of consumers packaged
goods and here are some of the analyses made:
1. Temporary retail price reductions substantially increase sales.
2. Higher market share brands are deal elastic
3. The frequency of deals changes the consumer's reference price.
4. The greater the frequency of deals, the lower the height of the deal.
5. Cross-Promotional effects are asymmetric, and promoting higher-quality
brands affects weaker brands disproportionately.
6. Retailers pass through less than 100 percent of trade deals
7. Display and feature advertising have strong effect on item sales.
8. Advertised Promotions can result in increased store traffic.
9. Promotional affect sales in complementary and competitive categories.
TEST MARKET
Test markets are as useful for evaluating different sales Promotions as they are for
advertising copy or pricing experiments. A product manager can attempt different
combinations of free samples, end-of aisle displays, coupons, and special price
Promotion over a period of time, using some stores as the Experimental group and
others with no promotional activity as the control group.
32
The above figure shows that of a result of a special display experiment run in a
Behavior Scan market. It can be seen that a significant spike in unit sales
occurred around the data when all of the special displays were installed. An
interesting result is that although the sales in the experimental stores were lower
than those in the control stores after the experimental period, there was no large
"through," thus implying that the net effect was quite positive.
EVALUATING TRADE PROMOTIONS
The results of earlier has shown that many users of consumer Promotion would have
bought the product anyway, so they simply pocket the value of the Promotion stock
up at the low price. A similar problem exists for trade Promotions, the issue of "gray
markets". Gray markets involve authorized dealers or retailers that buy the product
from the producer and then resell it to other, unauthorized dealers. This practice is
common when a company offers a volume discount and multiple dealers in effect
33
pool their orders to obtain it. Various Internet-enabled consortia have sprung up to
take advantage of these discounts.
Further, although many trade Promotions involve implied cooperation on the part of
the channel, these provisions are hard to monitor and enforce. Put differently.
Although the manufacturer's objectives are best served when Promotions are passed
through to consumers, channels' profits are often increased by retaining all or a
substantial amount of a Promotion allowances as profit. One way to evaluate trade
Promotions is as a necessary cost of doing business, an explicit recognition of the
growing power of mass merchandisers in consumer packaged goods marketing.
Trade Promotion now accounts for more of the Promotion budget than either
advertising or consumer Promotions. One reason is a key to increased volume.
Trade Promotion consisted of three basic types—off-invoice discounts, sales drive
discounts, and special fall premiums—and their effects were treated separately. The
model included an "end-of-deal" variable to account for orders placed during the deal
period but not shipped until the next period. The sales drive consisted of a percentage
payment to channel when it sold units to the retailer. The special fall premium was
direct payment to the Manufacturer/s own sales force. To remove the impact of the
direction sales force were headed on their own the model also used a time trend term.
A different approach uses an expert system style modeling method (promoter) based
on the results of many past Promotions. This approach begins by developing a baseline
sales level based on trend and seasonality plus any unusual factors that may have
affected sales. Basically, a baseline estimation procedure relies on periods when
Promotion is zero. Incremental sales are then computed as the difference between
baseline and actual sales. Thus, in contrast to the multiple-equation approach
PROMOTOR does not asses the process by which a Promotion works; rather it
34
concentrates on estimating its magnitude. The general findings from PROMOTOR are
the fallowing:
Trade deals tend to have lower "pass-through"; that is, savings by the retailer are
passed along to consumers less than manufacturers hope. Retailers tend to forward buy
when they offered Promotions, allowing them to stock up and ultimately making
the Promotion unprofitable for the manufacturer. The effectiveness of trade deals
varies greatly across sizes of products and markets.
35
CHAPTER-IV
DATA ANALYSIS
DATA ANALYSIS
1) Which promotion techniques would you prefer for your purchase?
I) Newspaper Advertisement
Options Maximum Moderate Minimum Nil

Responses 53 71 36 22
Percentage 29% 39% 20% 12%
36
Percentage
50%
40%
30%
20%
10%
0%
te
m
m
ra
u
il
im
im
N
e
d
x
in
o
a
M
M
M
potions
INTERPRETATION:
29% of the total customers have responded to the maximum extent that promotion
technique Newspaper advertisement is good.
39% of the total customers have responded that the promotion technique Newspaper
Advertisement is moderate.
20% of the total customers have responded that Newspaper Advertisement
Promotion technique is to the level of minimum. 12% of the total customers have
responded that News paper advertisement is not at all a promotion technique.
II) Exchange Mela
Options Responses Maximum Moderate Minimum Nil
87 54 21 20
Percentage 48% 30% 12% 11%
37
Percentage
60%
50%
40%
30%
20%
10%
te
m
m
0%
ra
u
u
im
il
im
e
N
d
x
in
o
a
M
M
M
options
INTERPRETATION
technique Exchange Mela is good. 30% of the total customers have responded that
the promotion technique Exchange Mela is moderate. 12% of the total customers
have responded that Promotion technique Exchange Mela is to the level of minimum.
11% of the total customers have responded that Exchange Mela is not at all a
promotion technique,
III) Scheme Coupons

Percentage 38% 34% 16% 12%
38
Precentage
40%
30%
20%
10%
te
m
0%
m
ra
u
il
im
im
e
N
d
x
in
o
a
M
M
M
options
INTERPRETATION
technique Scheme Coupons is good.
34% of the total customers have responded that the promotion technique Scheme
Coupons is moderate.
16% of the total customers have responded that Promotion technique Scheme
Coupons is to the level of minimum.
12% of the total customers have responded that Scheme Coupons is not at all a
promotion technique.
IV) Others

Precentage
40%
Percentage 22% 18% 26% 34%
30%
20%
10%
te
m
0%
ra
u
il
im
im
e
N
d
x
in
o
a
39
M
M
M
options
INTERPRETATION
22% of the total customers have responded to the maximum extent that Other
promotion techniques are good.
18% of the total customers have responded that the Other promotion techniques arc
moderate,
26% of the total customers have responded that Other Promotion techniques are to
the level of minimum.
34% of the total customers have responded not at all to the Other Promotion
techniques.
05) Do you think that Exchange Mela's will attract you in buying bike?
Options Maximum Moderate Mini in u in Nil

Percentage 33% 15% 48% 4%
40
Precentage
60%
50%
40%
30%
20%
10%
0%
te
m
m
ra
u
il
im
im
N
e
d
x
in
o
a
M
M
M
options
INTERPRETATION
33% of the total customers have responded that exchange mela's to the maximum
extent attract them to buy the bike.
15% of the total customers have responded moderately that exchange mela's are a
good source of buying new one's.
48% of the total customers have responded that exchange mela's will attract them
to buy the new to minimum.
4% of the total customers have responded that exchange mela's will have no effect on
them.
06) Do you think that Advertisement with Star amenities will attract you to buy the
Bike?

41
Precentage
50%
40%
30%
20%
10%
te
m
0%
ra
u
u
im
im
il
e
N
d
x
in
o
a
M
M
M
options
INTERPRETATION
4% of the total customers have responded that advertisements with star amenities will
attract them to maximum extent.
46% of the total customers have responded that they are
moderately attracted towards purchasing bikes of advertising with star amenities,
42% of the total customers have responded that advertisements with star amenities
will attract them to level of minimum.
8% of the total customers have responded that advertisements with star amenities
will have no effect on them,
07) Are you satisfied with the maintenance cost of your Bike?

42
Precentage
50%
40%
30%
20%
10%
te
m
0%
m
ra
u
il
im
im
e
N
d
x
in
o
a
M
M
M
options
INTERPRETATION
41% of the total customers have responded that to the maximum extent they have
satisfied with maintenance cost.
44% of the total customers have responded that the maintenance cost of the bike is
moderate.
5% of the total customers have responded that the maintenance cost of the bike is to
the level off minimum,
9% of the total customers have responded that the maintenance cost is very much nil.
08) Are you aware of new TVS brand Two-Wheelers in the Market?
43
Precentage
60%
50%
40%
30%
20%
10%
te
m
0%
m
ra
u
il
im
im
e
N
d
x
in
o
a
M
M
M
options
INTERPRETATION
0% of the total customers have responded that to the maximum extent they are aware
of the new models of the TVS bikes.
41% of the total customers have responded that the awareness of the new models of
TVS bikes is moderate.
8% of the total customers have responded that the they are aware of new one's to the
minimum level.
1% of the total customers have responded they arc not aware of the new models of
the TVS bikes
09) Do you think that TVS Motors Company is following the above techniques for
increasing the sales and promotion of the brand?

Percentage 16% 49% 17% 18%
44
Precentage
60%
50%
40%
30%
20%
10%
te
m
0%
m
ra
u
il
im
im
e
N
d
x
in
o
a
M
M
M
options
INTERPRETATION
16% of the total customers have responded that to the maximum extent they are
increasing the sales fallowing above techniques.
49% of the total customers have responded that the TVS to increase sales by
fallowing above promotion techniques is moderate.
17% of (he total customers have responded that TVS, to increase sales by fallowing
above techniques is to the level of minimum.
18% of the total customers have responded they arc not at all fallowing above
promotion techniques to increase sales.
10) Do you feel that TVS Brand Motors are increasing their sales in the market?

Percentage 23% 42% i 9% 1 6%
45
Precentage
50%
40%
30%
20%
10%
0%
te
m
m
ra
u
il
im
im
N
e
d
x
in
o
a
M
M
M
options
INTERPRETATION
23% of the total customers have responded that to the maximum extent TVS are
increasing the sales.
42% of the total customers have responded that the TVS increasing sales are
moderate.
19% of the total customers have responded that TVS increasing sales is to the level
of minimum.
16% of the total customers have responded they are not at all are increasing the
sales.
11) Do you think that features of TVS motors matches with the price of the Bike?
46
Percentage 22% 43% 19% 1 6%
Precentage
50%
40%
30%
20%
10%
0%
te
m
m
ra
u
il
im
im
N
e
d
x
in
o
a
M
M
M
options
INTERPRETATION
Among total 182 respondents:22% of the total customers have responded that to the
maximum extent TVS features matches with the price of the bike.
43% of the total customers have responded that the TVS features, matches with the
price is to moderate.
19% of the total customers have responded that TVS features matches with the price
are to the level of minimum.
16% of the total customers have responded that TVS features not at all matches with
the price of the bike.
12) Do you have any Complaint about your Bike in terms of the following?

47
Percentage 20% 44% 20% 16%
Precentage
25%
20%
15%
10%
5%
0%
te
m
m
ra
u
il
im
im
N
e
d
x
in
o
a
M
M
M
options
INTERPRETATION
20% of the total customers have responded that to the maximum
extent TVS motors have repairs. 44% of the total customers have responded that the
repairs about TVS motors are moderate.20% of the total customers have responded
that repairs about TVS bikes are to the minimum level. 16% of the total customers
have responded that TVS motors do not have any repairs.
13) Put the appropriate alphabet in the space available?
Options Excellent Good Moderate Less Nil

TVS 62% 17% 14% 7% 0%
0%
Others 64% 27% 9% 0%
48
Percentage 70%
60%
50%
40%
30%
20%
10%
0%
te
t
n
ra
s
e
il
o
s
ll
N
e
o
e
e
d
G
L
c
o
x
M
E
Potions
INTERPRETATION
62% of TVS and 64% of Other Customers have responded for the option Excellent.
17% of TVS and 27% of Other Customers have responded for the option Good.
14% of TVS and 9% of Other Customers have responded for the option Moderate.
7% of TVS and 0% of Others Customers have opted the options Less.
No customer have opted for nil
14) Style

TVS 45% 36% 15% 4% 0%
Others 53% 24% 22% 0% 0%
49
Percentage
60%
50%
40%
30%
20%
10%
0%
te
t
n
ss
ra
il
lle
N
o
e
e
e
L
d
xc
o
M
E
Potions
INTERPRETATION
15). Comfort
TVS 38% 50% 8% 4% 0%

Others 31% 64% 4% 0% 0%
50
Percentage
70%
60%
50%
40%
30%
20%
10%
te
0%
t
n
ra
s
e
il
s
ll
N
o
e
e
d
G
L
c
o
x
M
E
Potions
INTERPRETATION
38% of TVS and 31% of Other Customers have responded for the option Excellent,
4% of TVS and 0% of Others Customers have opted the option Less.
16 ) Pickup
Options Excellent Good Moderate less Nil

TVS 53% . 34% 0%
10% 4%
Others 56% 36% 4% 4% 0%
51
Percentage
60%
50%
40%
30%
20%
10%
0%
te
t
d
n
ss
ra
il
le
N
o
e
e
el
L
d
xc
o
M
E
Potions
INTERPRETATION
17) Cost Factor

TVS 4% 10% 41% 45% 0%
Others 13% 16% 22% 49% 0%
52
Percentage
0.6
0.5
0.4
0.3
0.2
0.1
0
te
t
n
ra
s
e
il
o
s
ll
N
e
o
e
e
d
G
L
c
o
x
M
E
Potions
INTERPRETATION
10% of TVS and 16%'of Other Customers have responded for the option Good,
18) If you are already the owner of TVS bike/vehicle, are you fully satisfied?

53
Percentege
80
options
60
40
20
0
Maximum Moderate Minimum Nil
INTERPRETATION
15% of the total customers have responded that to the maximum extent the
performance of the TVS bikes is good.
58% of the total customers have responded that the TVS bikes performance is
moderate.
20% of the total customers have responded that TVS vehicles performance is to the
level of minimum.
1% of the total customers have responded mat TVS vehicles performance is not up
to the mark.
19) SERVICE AND SPARES

54
Percentege
options
80%
60%
40%
20%
0%
te
m
m
ra
u
il
im
im
e
N
d
x
in
o
a
M
M
M
INTERPRETATION
65% of the total customers have responded that to the maximum extent the service
and spares is good.
15% of the total customers have responded that the TVS bikes service and spares is
moderate.
20% of the total customers have responded that TVS vehicles service and spares is to
the level of minimum.
1% of the total customers have responded that TVS vehicles spares and spares are
not up to the mark.
20. Would you like to buy TVS two-wheeler motor in future?
Options YES NO
Responses 127 55
Percentage 70% 30%
55
30%
70%
INTERPRETATION
70% of the total customers have opted for the yes option which implies a greater
proportion of buying the TVS vehicle.
30% of the total customers have opted for no.
CHAPTER-V
FINDINGS CONCLUSIONS & SUGGETIONS
56
FINDINGS
 Most of the customers have the opinion that there is no resale value for the
TVS brand two-wheelers in the Market, so there is a need to improve the
resale value of the TVS products.
 Brand image plays an important role for retaining the Customers to a
particular brand in the Market. So it is vital to standardize the brand image of
the TVS motorcycles.
 Dealers should ensure that more and more servicing centers are available in
the smaller towns.
57
 More style, pickup and mileage products to be manufactured to meet the
satisfaction of the Customer and to retain them to the Brand of TVS.
 Small modifications to the existing models can bring enormous.
CONCLUSIONS
Sales Promotion is an important function of any Organization in today’s Market.
Sales Promotion deals with various promotion techniques for improving the Sales and
Brand awareness of TVS Brand two-wheelers.
Knowing the importance of the Sales Promotions in to-days Market, I want to
conclude by saying that the TVS Brand two-wheelers should carry out the various
program's for increasing the Sales of TVS brand two-wheelers in the Market.
SUGGETIONS
 It is advised to stability the Brand name and increase the Mileage of the
bike to attract the middle and lower middle class people.
 It is advised to give advertisement in local channel, which may boost the
business in local areas.
 Change in the perception of the Customers towards TVS bikes.
 It is advised to reduce the price of the spare parts to target the middle and
58
lower class income people.
 Efforts to be made to capture uncovered areas.
 It is advised to increase promotional schemes to attract more number of
people free servicing of the vehicles should be carried out effectively.
QUESTIONNAIRE
1. What Bike do you hold at present?
a) Brand b) Model c) Satisfy d) Mileage
2. wich promotion technique would prefer for increasing of sales?
a) Advertising b) Exchange Mela c) Scheme Coupons d) Others
3. Do you think Exchange Mela's will attract you in buying the Bike?
a) Maximum b) Moderate c) Minimum d) Nil
59
4. Do you think Advertisement with Star amenities will attract you to buy the Bike?
5. Are you satisfied with the maintenance cost of'your Bike?
6. Do you think that TVS Motors Company is following the above techniques for
increasing the sales and promotion of the brand?
a) Maximum I)) Moderate e) Minimum d) Nil
7. Do you feel that TVS Brand Motors arc increasing their sales in the market?
8. Do you think that features of TVS motors matches with the price of the Bike?
9. Do you have any Complaint about your Bike in terms of following?
10. Put the appropriate alphabet in the space available.
a)Excellent b)Good c) Moderate d) Less e) Nil
11. If you arc already owner of TVS vehicle/hike, are you fully satisfied?
12. Would you like to buy TVS two-wheeler motor in future?
(Yes/no)
60
BIBLIOGRAPHY
Principles of Marketing -Kotler Amstrong
Essence of Marketing -Majaro
Basic Marketing -Me Carthy
Product Management -Donald R. Lehman
Internet
61
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PROJECT TITLE

A MARKET STUDY ON SALES PROMOTION

AT SRI SAI TVS MOTORS

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY

makes it to increase the sales.

 To determine the share of the TVS in two-wheeler by directly questioning the

1. DEFINING THE PROBLEM

been made to understand Sales Promotion towards TVS Motor Company.

2. DATA COLLECTION & PROCESSING

collected through well designed questionnaire and personal interviews. Secondary

data is collected through various books i.e Marketing.

This is through a well designed questionnaire.

and various books.

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

The TVS Group is one of India's largest industrial conglomerates. TV Sundaram

Iyengar and Sons Limited, established in 1 9 1 1 , is the parent and holding

company of the TVS Group.

Sundaram Motors Madras Auto Service

represents premier automotive companies like Ashok Leyland, Mahindra and

several leading manufacturers.

state-of-the-art warehouses all over the country.

booths to engine analyzers and industrial equipment products.

presence in various fields-two-wheelers, automotive components, automotive spares,

computer peripherals and finance.

wheeler manufacturers. With a turnover of over Rs.2800 crores, the Company

manufactures a wide range of motorcycles, scooters, mopeds.

the first Indian company to introduce 100 cc Indo-Japanese motorcycles in

market share-in motorcycles.

at its state-of-the-art factories in Mysore and Hosur.

Various TVS two-wheelers

TVS offers a wide range of two-wheelers:

 Scooterettes - TVS Scooty Pep/ TVS Scooty 2S

 Mopeds - TVS XL Super/ TVS XL Super HD

one among the top five two-wheeler manufacturers in Asia.

capitalizing on the expertise developed in the areas of manufacturing, technology and

technology by constant benchmarking against international leaders.

Introduced India's first catalytic converter enabled motorcycle, the 100cc

Launched India's first 5-spectl motorcycle, the Shoaling in Oct 1997.

Launched India's first high performance moped - the XL Super, with a 70

cc engine in Nov 1997.

Launched Victor in August 2001, a world-class 4-stroke 1 10 cc motorcycle.

Launched Centra in January 2004, a world-class 4-stroke 100 cc motorcycle

with Engines for best-in-class mileage.

the most contemporary labs, capable of developing innovative designs. Committed

TVS is committed to protecting (his environment. The company's manufacturing

 First Indian Company to introduce l00cc Indo-Japanese motorcycles in

 Launched India's first indigenous Scooterette, TVS Scooty in June 1994.

 Introduced India’s first catalytic converter enabled motorcycle, the

100cc Shogun in Dec 1996.

 Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.

 Launched India's first high performance moped - the XL Super, with a 70

cc engine in Nov 1997.

 Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.

TVS companies have managed this before.

have had the honor of receiving it.

The Doming Prize is the ultimate confirmation of our commitment to quality

Sri Sai TVS Motors:

Details of Sri Sai Motors

sub dealer to the TVS motors.

performance in increasing of sales & promotion and gaining huge customer