1.1 INTRODUCTION ABOUT THE STUDY

INTRODUCTION:

CONSUMER PROMOTION

DEFINITION

Action intended to convince individuals to purchase a

good or service. A typical business will only offer a consumer

promotion like a reduced price, free sample or bonus offer for

a short period in order to stimulate demand for

and awareness of the product being promoted.

MEANING:

Consumer promotion is an ongoing challenge for all

businesses. Whether just starting out or have been in

business for years, the solutions that will help the business

find new customers without spending a fortune. 

Promoting the business to potential customers gives the

opportunity to increase your sales, gain a competitive

advantage and enhance awareness about the range of products

and/or services.

SALES PROMOTION:

There are number of different definitions focusing on various

characteristics of sales promotion. This diversification as it

will be shown later plays very important role in identifying

objectives and models for promotions.

1. Sales promotion consists of a diverse collection of

incentive tools, mostly short-term designed to stimulate

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quicker and/or greater purchase of a particular product

by consumers or the trade. (Kotler, 1988)

2. "Sales promotion is the direct inducement or incentive

to the sales force, the distributor or the consumer with

the primary objective of creating and immediate sale"

(Shultz, Robinson 1982)

3. "Sales promotion is the methods or techniques for

creating public acceptance of or interest in a product,

usually in addition to standard merchandising techniques,

such as advertising, and personal selling; generally

consisting of the offer of free samples, gifts made to

purchaser etc. (Random House Unabridged Dictionary 1983)

4. "Sales promotion represents those marketing efforts

that are supplementary in nature, are conducted for a

limited period of time and seek to induce buying "

(Davis, 1981)

b. Sales promotions are all marketing activities that

attempt to stimulate to quick buyer action or attempt to

promote immediate sales of product" (Shimp, 1993)

All those definitions are stressing different aspects of sales

promotions and all of them are correct ones. There are several

common characteristics that might be drown out of these

definitions. (Blattberg, Neslin 1990)

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A) Sales promotions are action focused - the emphasis is

on consumer to make some action in a limited period of

time.

B) Sales promotions are marketing events - they all

happen within marketing strategy of the company/

organization. As early as in 1967 researchers were

concerned that interaction of the promotions with other

elements of marketing mix should not be ignored (Engel

1967). Because promotions include so many difference

tools and mechanisms there is an ongoing threat of

viewing sales promotional techniques in isolation from

other marketing mix elements.

C) Sales promotions are designed to have a direct impact

on behaviour. It is argued in the literature that while

advertising goes through the process of cognition and

then influences an action, promotion is believed to work

directly on behaviour.

CLASSIFICATION OF SALES PROMOTION:

The sales promotions consist of two types following on:

Consumer oriented sales promotion Business oriented sales promotion

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Consumer oriented Sales promotion

Business oriented

Sales promotion

Retail Promotions

inducements offered by retailersto consumers Includes pricediscounts, retail coupons, doublecoupons, features, specialdisplay, etc.

Consumer PromotionsInducements offered bymanufacturers to wholesalersand retailers, or by includeoff-invoice discounts,merchandise allowances,promotional allowances, etc.

Trade Promotions

Inducements offered bymanufacturers to wholesalersand retailers, or by a includeoff-invoice discounts,merchandise allowances,promotional allowances, etc.

Industrial Promotions

Inducements offered by and toraw materials supplierscomponent parts manufacturers,and final producers ormanufacturers includes off-invoice discounts, merchandiseallowances, etc.

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Business Promotions

Inducements offered bybusiness product suppliers toany other business ororganization a includes off-invoice discounts, merchandiseallowances, etc.

SALES PROMOTION AT CONSUMER’S LEVEL:

The various schemes of sales promotion at Consumer’s Level

may include.

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

These are given directly to the consumer these coupons

are in most cases kept inside the package. The consumers

many receive a price reduction of the stated values of the

coupon at the time of purchase. The retailer receives

reimbursement for the value of the coupon form the

manufacturer. Coupons act as a short run stimulus to the

sale of the product, since they are directly tied with the

purchase of the item. They encourage the retailer to stock

the product.

What is important is that a coupon offer does not spoil

the named price of the brand nor does it unpaired the margin

of the dealers. But it is not easy to measure the

effectiveness of a coupon offer. One over knows how many

customer would have bought the product without the

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incentive. It is also difficult to find out how many

customers were held after the coupon offer expired.

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

packs):-

This offer is intended to stimulate the sales during a

slump season. In this method the customer is offered a

reduction from the printed price list. It is also used when

a substitute for competing product enters the market.

Many experts on sales promotion fed that ‘Off Schemes’

are among the weaker and less desirable methods of

promotion. These can be trade resentment particularly when

the retailer raises the price to retain his margin. Secondly

that is not conductive to building up brand loyalty.

Consumers may simply shift to the products that offer this

scheme.

3. Samples:-

In the hope of converting a prospect into a customer a

sample (Some quantity of the product) may be given. This

helps the consumer to verify the real quality of the

product. Various pair manufacturing companies offer this

method. For developing brand loyalty this method is quite

useful. Sampling is a fast method of demand creation because

one knows the result as soon as the consumer has had time to

use the sample and buy the brand.

Disadvantage of Samples:-

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Offering sample in quit expensive. There is the cost of

producing samples. The distribution costs are also high.

Samples have to be mailed to potential customers or to be

distributed through retail shops. There are also problems

when the real product does not resemble the sample supplied.

4. Money Refund Offer:-

An offer usually stated on the package is that

manufacturers will return with in a stated period part or

all of the purchaser’s money if he is not completely

satisfied with the product.

5. Trading Stamps:-

A premium in the form of stamps is given by the sellers

to consumers while selling goods. The number and value of

stamp that the buyer receives depends on the values of the

purchase. These stamps are redeemable through premium

catalogues at the stamp redemption centres.

6. Buy-Back Allowance:

This an allowance following a previous trade deal not

offer a certain amount of money for new purchases based on

the quantity of purchases on the first trade deal. It

extends the life of a trade deal and helps to prevent part

deal sales decline. It greatly strengthens the buyer’s

motivation to co-operate on the first deal.

7. Premium:-

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There are various forms of premiums provided by the

manufacturer as sales promotional devices:-

(a) Coupons are supplied for effecting price reductions.

(b) Factory in pack premium these are popular in the case of

Body food and Tin food items, Spoons, Cups, Measuring, Glass

etc. and such other items are packed with the product in the

box itself. Factory in pack premium are particularly goods

for product meant for children. The Bianca Toothpaste packs

contain animal shape toys. These are very attractive and

quite popular among the children.

(c) Self Liquidating Premiums:-

The cost of the premium is collected from the buyer

himself. But when the buyers pay for it he has to pay only a

considerably low price for the premium. This is possible for

the manufacturer purchases the items in bulk at a premium

and his cost per unit as is substantially low.

8. Bonus packs.

Bonus packs are simply packages containing an extra amount

of the product but sold at the price of a regular sized

package. Bonus packs are most typically associated with

transaction building, but may serve brand building purposes as

well. For both strategies, bonus packs have their pros and

cons. For transaction building, consumers new to the brand may

appreciate the extra value a bonus pack provides. However, for

some product categories, consumers unfamiliar with a brand may

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hesitate from purchasing a bonus pack because the extra

quantity represents a slightly larger purchase commitment to

an untried brand. For brand building, consumers loyal to a

particular brand may view the bonus pack like a small premium

a thank you for being good customers. However, the effect of

bonus packs on the value of a brand among brand loyal

consumers is not known.

9. Price off packs.

Some manufacturers offer price reductions by printing the

discount right on the package. Because it is a price based

promotion, it may have a larger impact on transaction building

than on brand building, though brand loyal customers will

certainly appreciate the savings.

Price off packs hold strong appeal for marketers because

of their simplicity. They require no coupon distribution, no

rebate offers, and even no advertising because the offer

itself is obvious and printed prominently on the package

itself.

The only major administrative tasks for price off packs

are arrangements with retailers to honour the lower price and

to reimburse retailers the difference between the discounted

price and the retailer’s regular price.

10. Sweepstakes and Contests.

Sweepstakes and contests are not synonymous. Sweepstakes

winners are determined strictly by random drawing while

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contests require participants to perform some task or display

some talent in order to win.

Legal restrictions governing sweepstakes have left them

somewhat out of favour with promotion managers. Because

sweepstakes winners are determined by chance, they cannot be

limited to those who purchase the product. The sweepstakes

would actually be a lottery in which the product purchase

amounted to buying a ticket. Lotteries not sanctioned by a

government agency are illegal in most states. Marketers

promoting by means of sweepstakes must provide an easy

mechanism for non purchasers to enter and must note that no

purchase is necessary to enter in all material promoting the

sweepstakes.

Contests determine winners by their display of some

talent or participation in some competition. As such,

participation can be limited to those who purchase the

product. However, unlike sweepstakes which are simple to

administer, contests frequently require judging as well as the

development of rules and criteria for winning. Often

unforeseen circumstances arise that cast controversy on the

contest and by extension, its sponsor.

Promotion by either contest or sweepstakes generally

attempts to build transactions by generating excitement about

the brand. These activities serve to draw in new purchasers

but have little effect on brand loyal purchasers. They may

even participate in the contest or sweepstake, but their

purchase patterns change little as a result.

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11. Loyalty Programs

Promotions that offer customers a reward, such as price

discounts and free products, for frequent purchasing or other

activity are called loyalty programs. These promotions have

been around for many years but grew rapidly in popularity when

introduced in the airline industry as part of frequent-flier

programs. Loyalty programs are also found in numerous other

industries, including grocery, pizza purchasing and online

book purchases

Where they may also be known as club card programs since

members often must use a verification card as evidence of

enrolment in the program.

Many loyalty programs have become ingrained as part of

the value offered by a marketer. That is, a retailer or

marketing organization may offer loyalty programs as general

business practice. Under this condition loyalty program does

not qualify as a sales promotion since it does not fit the

requirement of offering a short-term value (i.e., it is always

offered). However, even within a loyalty program that is part

of a general business practice, a sales promotion can be

offered such as special short-term offer that lowers the

number of points needed to acquire a free product.

12. Demonstrations and Personal Appearances

Many products benefit from customers being shown how

products are used through a demonstration. Whether the

demonstration is experienced in-person or via video form, such

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as over the Internet, this promotional technique can produce

highly effective results. Unfortunately, demonstrations are

very expensive to produce. Costs involved in demonstrations

include paying for the expense of the demonstrator, which can

be high if the demonstrator is well-known (e.g., nationally

known chef), and also paying for the space where the

demonstration is given.

An in-person or personal appearance by someone of

interest to the target market, such as an author, sports

figure or celebrity, is another form of sales promotion

capable of generating customer traffic to a physical location.

However, as with demonstrations, personal appearance promotion

can be expensive since the marketer normally must pay a fee

for the person to appear.

OTHER STEPS BY MANUFACTURER FOR PROMOTING SALES:

1. Communicating Market News :-Often this service is

reciprocal the manufacturer may acquaint his dealer with the

fact relating to his production and prices while the dealer

may familiarize him in return with the information bearing

on charges in the consumer's demand, their like and dislike

complaints and criticism, substitutes etc.

2. Inviting to Sales Conference and Convention:-

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The gestures of regard and respect pave the way for better

relation and co-operation.

3. Offering Reasonable Terms of Sale:-

Of all the forms of encouragement, the monetary incentive

evokes immediate response. Hence every producer must offer

the most responsible terms of sale such as longer periods of

credit and higher rates of descants.

4. Supplying suitable packages and useful things.

5. By taking the return back.

6. By furnishing them with sales literature and display

materials.

RETAIL PROMOTION:

1. Price cuts. A retail store putting products “on sale” is an

age old staple of retail promotions. Shopkeepers of old used

the basic laws of price and demand to move stubborn inventory

through their stores and into the hands of consumers by simply

lowering the price. Modern retailers use the same technique,

though their approach to the practice is much more scientific

and calculated. Not only do retailers attempt to forecast

demand of an item that’s put on sale, they attempt to predict

how that price change will affect sales of complimentary and

competing goods. Their goal is to vary the prices of sets of

products so as to produce maximum profits for their entire

inventory of goods. The mathematical models used for these

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types of calculations can be quite sophisticated and

impressive. We will glimpse briefly at how these mathematical

models work later when we examine how to evaluate the success

of sales promotions. For now, we focus on the mechanics of

retail price cutting.

A. presenting the reduced price. According to Tellis

(1998), retailers rely on four basic approaches to presenting

price cuts to consumers, which vary on the basis of the

information retailers provide when giving the offer. First,

they may provide the regular and discounted prices together

and let the consumer calculate the actual discount. For

example, the retailer may present the discount on a television

by stating that the set The advantage to this approach is

that the regular price is provided, though the disadvantage is

that consumers must calculate the discount themselves.

Second, retailers may present the reduced price as the

dollar difference between the regular and discounted prices.

Similarly, third, retailers may present the discount as the

percentage difference between the regular and discounted

prices. When choosing between these two methods, research

suggests that consumer response favors the method that

suggests a larger numerical savings. This in turn may depend

on how expensive the item is to begin with. For example,

suppose a retailer reduces the price of an item from two

dollars to one dollar. For this relatively inexpensive item,

presenting the discount as “save fifty percent” or “save half”

would be more effective than “save a dollar.” On the other

hand, suppose the price of an item regularly marked for one-14

thousand dollars was reduced to nine hundred dollars. It would

probably be more effective to present the price reduction as

“save one hundred dollars” rather than save “ten percent.” of

course, these guidelines are just that: guidelines. Different

people from different perceptions of the same price

reductions.

Fourth, retailers can frame price reductions in terms of

how much more consumers can buy at the reduced amount relative

to the regular amount. For example, price reductions can be

presented as “buy three get one free,” “buy three for five

dollars,” or “get three for the price of two.” Research shows

that, of the four basic presentation methods for price

reductions, the fourth tends to elicit the strongest sales

response acres a variety of consumer product categories. Two

reasons may account for the effectiveness of this approach.

One may be simply that consumers perceive this method as being

suggestive of larger discounts. Two, and more importantly,

consumers frequently believe that the discount does not apply

unless they buy the total number stated in the offer.

B. price discounts and the law. The Federal Trade Commission

views all four of these methods as suitable ways of presenting

price discounts as long as none deceive consumers. In other

words, as long as the information is accurate and is honoured

by retailers, the does not consider any as inherently

deceptive.

Where retailers frequently run afoul of the law regards

what constitutes the “regular” price from which the discount

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is calculated. Discount from a regular price when the product

in question is rarely or never sold at that regular price.

Discounts calculated from such unrealistic regular prices may

be seen as deceptive.

In response, retailers frequently base their discount

calculations on “manufacturer’s suggested retail price.” These

prices, arbitrarily published by manufacturers, tend to be

higher than average retail prices, which allow retailers to

claim discounts well below manufacturers suggested retail

price. Another tactic retailers use to give the appearance of

price reductions is to present the discount relative to some

arbitrary “reference price,” which may bear no relationship to

the item’s regular price.

2. Retail coupons. Retailers frequently issue their own

coupons to consumers, though they issue considerably less than

consumer products manufacturers. Indeed, little is known about

the general couponing habits of all but the largest national

retailers. This is because retailers are more numerous and

diverse than manufacturers. For example, retailers differ

widely in terms of their size, ranging from small single

outlet sole proprietorships to some of the world’s largest

corporations. Likewise, retailers are dispersed throughout all

of our country’s towns and cities. Such variation makes

systematic study of their overall promotional strategies

extremely difficult.

That said, we do know anecdotally about some ways retail

coupon promotion differs from couponing by manufacturers.

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First, retailers are more likely than manufacturers to cross

promote merchandise. That is, retailers may offer a coupon

discount for one item if consumers purchase another usually

more popular item. Unlike manufacturers, who obviously can

only offer coupons on their own brands, retailers are free to

offer coupons on the multitude of brands that they carry. This

typically permits retailers greater flexibility in creating

coupon promotions. Second, retailers more frequently offer

blanket discounts by coupons. In other words, a retailer may

distribute a coupon offering “10% off any merchandise in the

store.” Clearly, manufacturers cannot make such blanket

offers. Third, retailers are more likely than manufacturers to

offer non price promotions by coupon. That is, relative to

manufacturers, retailers more frequently use coupons to offer

free merchandise or free services to their customers. Finally,

retailers routinely modify the dollar amounts offered by

manufacturers’ coupons. Indeed, retailers may do so with other

retailer coupons. That is, a retailer may decide to double or

even triple coupon face values. Indeed, the retailer can

target the offer to coupons for certain goods or from certain

manufacturers.

These advantages may lead you to wonder why retailers do

not coupon more often and manufacturers less often. Small

retailers, who really cannot afford to compete on price

against larger retailers, do not wish to sensitize their

customers to price, which regular couponing can do. Therefore,

refrain from price promoting for all but the most important of

occasions. Large retailers, on the other hand regularly

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compete on price, which affords them little incentive to offer

coupons.

These retailers operate on razor thin margins every day.

Managing coupon deals on a large scale becomes more costly and

effortful than simply putting the item on sale for some period

of time. Therefore, as with smaller retailers, coupon

promotions at the retail level are generally reserved for

special occasions or unusual circumstances.

3. Retail displays. Promotion managers understand full well

that drawing attention to a promotion is the first essential

ingredient in its success. In retailing, where promotions rely

so heavily on the store’s physical environment, retail

displays provide a highly effective means of drawing consumer

attention to a promotional offer. Although attracting

attention remains the top and overriding purpose of retail

displays, attention itself is needed for a variety of more

specific purposes. Displays frequently give prominence to

price cuts, highlight many consumer promotional offers such as

premiums or bonus packs, introduce new products or services,

and permit sampling or inspection of new products.

Retailers can create their own retail displays or rely on

manufacturers to provide them with retail display materials.

Manufacturers are often eager to provide especially large

retailers with display materials in their efforts to help

retailers merchandise the manufacturers’ products. These

professionally prepared retail displays frequently boast

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highly complex and elaborate designs with moving parts or

interactive features.

Retailers select the location for in-store retail

displays depending on the importance of the retail promotion,

the nature of the product being promoted, or the trade deals

being received from the manufacturer. Clearly, some retail

space is more desirable than others. As a general rule, the

more people that walk past a space, the more desirable that

space is for a retail display.

A. Front-of-store displays. Many retailers design into their

stores large open areas near the store entrances to hold large

retail displays. Because all customers entering the store pass

by these displays, the front of the store is the most valued

location for retail displays. Retailers offer this location to

manufacturers willing to provide valuable trade deals or other

merchandising assistance.

B. Endcap displays End caps are simply end of aisle shelving.

After the front of the store, endcaps are valued most as

retail display space. Depending on store layout, most shelving

aisles end into high traffic aisles or walkways that funnel

consumers to particular store departments or to cash

registers. Naturally, endcaps exist at both ends of a shelving

aisle. As a general rule, endcap displays nearest the cash

registers are more valued display space.

C. In-aisle displays. Retail displays may also be placed in

shelving aisles. Relative to the front of the store and

endcaps, in-aisle displays are less desirable locations. This

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is because a given aisle will receive less traffic than other

store locations. Moreover, because of in-aisle space

limitations, these displays tend to be smaller and may draw

less consumer attention. To boost the attention given to in-

aisle displays, many use “shelf talkers,” which use a motion

sensor to trigger a brief recorded message. Thus, as shoppers

walk near the display, the shelf talker speaks to them,

drawing their attention. Such devices should be used sparingly

as they run the risk of annoying shoppers.

IMPORTANCE OF SALES PROMOTION:

First, as discussed in earlier notes, the growth of

retailer power in distribution channels has led to an

increase in consumer promotions. Sometimes, manufacturers

make special offers to consumers because a powerful

retailer insisted that they do so. Other times,

manufacturers make special offers to consumers as a way

of counteracting retailer power by strengthening the

bonds of loyalty consumers may feel toward the brand.

Either way, retailers frequently serve as the driving

force behind consumer promotions.

Second, the nature of competition has changed remarkably

over recent years resulting in ever greater consumer

price sensitivity. The proliferation of brands and brand

extensions, highly segmented consumer markets, and lower

brand loyalty have combined to make consumers much more

aware of price given that many product categories are

populated by several competitors.

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Third, price deals have become the rule rather than the

exception for many products. Rebates on certain brands of

automobiles, department store sales, and coupons on many

grocery items are only a few areas where consumers have

grown to expect price breaks. Indeed, the expectation has

become so strong that, when possible, many consumers will

wait for promotional offers rather than buy with no deal.

Fourth, advertising clutter has forced marketers to find

new ways of getting consumer attention. Product benefits

alone frequently prove insufficient to prompt consumer

action much less get their attention. Thus, marketers

increasingly look to sales promotion to find ways of

breaking through to customers who face a constant

bombardment of promotional messages.

Finally, consumer promotion’s growth can also be

attributed to increased pressure on marketing management

for short-term results. Publicly traded companies find

themselves especially prone to this orientation. Many

investors look to immediate bottom-line results rather

than the long-term health or stability of the companies

in which they invest. Responding to this pressure,

marketing managers seek quick fixes for sagging bottom

lines. Sales promotions are often seen as ways to boost

near term sales. However, as their use becomes more

common, their costs become regular and recurring and

therefore potentially self-defeating.

FUNCTIONS OF SALES PROMOTION:

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Production Differentiation

Use of sales promotion techniques helps to differentiate

one’s products from the of competitors. This is especially

beneficial is the product offered essentially the same

features and benefits as others on the market. A method often

used to make products stand out is to offer them at a slightly

reduced price for a short period of time.

Attract Customers

Sales promotions are used to attract customers during

periods of slow sales. For example, if the offer a seasonal

product such as barbecue grills, by running a promotion in the

middle of winter where the price is reduced may encourage

people to buy a grill at a time where it might not otherwise

cross their mind.

Increasing Market Share

Sales promotions can lead to an increase in market share for

the manufacturer. The promotion will likely increase the sales

by taking away sales from the competitors. As a result, the

market share will increase while the competitors' share

decreases.

New Product Introduction

Retailers can use sales promotions to introduce a new

product. By offering the new item at a reduced price and

placing a "new item" sign in front of it, they can persuade

customers to give the new product a try. At the same time they

can discontinue a slow-moving item in the same category by

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marking it down and placing a "reduced for quick sale" sign in

front of it. This technique has the effect of keeping the

category fresh while freeing up needed shelf space

Inventory Control

Sales promotion can help retailers limit out-of-stock

situations by allowing them to purchase large quantities at a

reduced price. This can be especially advantageous to the

retailer for items that are popular sellers that can be

difficult to keep on the shelf.

METHODS OF SALES PROMOTION:

Percentage Sales Method :

Many companies set their promotion expenditures at a specified

percentage of sales. Accordingly the sale is set on the basis

of sales.

In this a specified sales percentage is decided for the

promotional budget Advantages of this method:

1. First, its use means that promotional budget vary with

what a company can afford.

2. Second, it encourages the management to think in terms of

the relationship among promotion costs, selling price,

and profit per unit,

3. Third, it encourages the competitive stability to the

extent that competing firms spend approximately the same

of their sales on promotion.

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4. In spite of the advantages, the sales method has little

to justify it. Its reasoning is circular: It views sales

as the determiner of the promotion rather than as a

result. It leads to budget setting by availability of

funds rather than by marketing opportunities.

• Competitive Parity Method:

Some companies set their promotional budget to achieve

share-of-voice parity with other competitors. Two arguments

are made in support of competitive parity method.

One is that the competitor’s expenditure represents the

collective wisdom of the industry. The other is that

maintaining a competitive parity helps prevent promotional

wars.

Neither argument is valid. There are no grounds for

believing that competition knows better what should be spent

on promotion.

Objective and Task Method:

The objective & task method calls upon marketers to

develop their promotion budgets by defining their specific

objectives, determining the task that must be performed to

achieve these objectives, and estimating the cost of

performing these tasks.

Deciding on the promotion mix:

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Companies face the task of distributing the total promotion

budget over the five promotional tools:

• Advertising

• Sales Promotion

• Public Relations and Publicity

• Sales Force

• Direct Marketing.

BENEFITS OF CONSUMER PROMOTION:

It is clear what the benefits of sales promotions are for

consumers and they know it. Demand for rewards and consumer

incentives have grown immeasurably in the last year and it’s

now what consumers expect wherever they shop. On the surface

it would appear that this is a one-sided relationship in which

consumers are holding businesses over a barrel.

Sales promotion shouldn’t and mostly isn’t something that

businesses are forced to resort to. Managed properly and

thought out thoroughly, sales promotion can be mutually

beneficial – particularly in the current economic climate.

Consumer retention

In the long-term a loyal customer is worth far more to a

business than an occasional high purchaser. When a customer is

recognised as loyal the emotional involvement with the brand

is increased. Showing recognition by offering consumer

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incentives for loyalty stands to solidify the idea of staying

loyal to the brand. Loyalty can be rewarded in a number of

ways from offering a coupon at the checkout to point’s

collection cards.

Create positive brand associations

Working together with another brand creates a sense of

corporate validation and helps the brand to tap into new loyal

customer bases. Whatever trade in there is sure to be a

synergistic brand for the to work with, for example hotels and

theatres or gyms and sports clothing retailers. It can also

work well for pushing you brand’s image in a new direction by

moving away from the logical partnerships.

Increase brand recognition

Brand recognition is essential for enticing customers to

buy your product/service over another. The authority

recognition gives the brand offers consumer’s confidence in

the product/service, as they know what to expect. Increasing

brand recognition comes from offering the sales promotion to a

wider audience than the regular customer base. A good example

of this is featuring a consumer incentive or exclusive

discount in a loyalty and membership programme or discount

club. These programmes are usually a free marketing option,

managed by an external agency that has a large existing

customer base.

Reach new consumers

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Sales promotion can be one of the most effective ways to

catch new customers’ eye.  The best ways to offer a discount

or consumer incentive is through a loyalty and membership

programmes/ discount club or a chance to win a grand prize. By

doing this you are giving consumers a reason to stray away

from the brands they are usually loyal to. Competitions are an

instant way to catch people’s attention but loyalty and

membership programmes or discount clubs go out to an

established customer base and can sustain a lasting message.

These rewards are useful to any business and however want to

represent the brand there is a sales promotion answer for

business that can be effectively integrated to compliment any

marketing plan.

FACTORS THAT DETERMINE THE SALES PROMOTIONAL TOOLS USED:

Each of the above components of the sales promotional has

strengths and weaknesses. There are several factors that

should be taken into account in deciding which, and how much

of each tool to use in a promotional marketing campaign:

(1) Resource availability and the cost of sales promotional

Advertising (particularly on television and in the

national newspapers can be very expensive). The overall

resource budget for the promotional campaign will often

determine which tools the business can afford to use.

(2) Market size and concentration

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If a market size is small and the number of potential

buyers is small, then personal selling may be the most cost-

effective promotional tool.

A good example of this would be businesses selling software

systems designed for supermarket retailers. On the other hand,

where markets are geographically disperse or, where there are

substantial numbers of potential customers, advertising is

usually the most effective.

(3) Customer information needs

Some potential customers need to be provided with

detailed, complex information to help them evaluate a purchase

(e.g. buyers of equipment for nuclear power stations, or

health service managers investing in the latest medical

technology). In this situation, personal selling is almost

always required - often using selling teams rather than just

one individual.

1.2 OBJECTIVES OF THE STUDY

Primary objectives:

28

To study on consumers’ promotion towards Sri Meenakshi

Motors (P) Ltd, Tirunelveli.

Secondary objectives:

To study on effectiveness of advertisement towards Sri

Meenakshi Motors (P) Ltd, Tirunelveli.

To identify the consumers’ opinion about new product

promotions in Sri Meenakshi Motors (P) Ltd, Tirunelveli.

To study about impact of promotion on consumers’

behaviour towards Sri Meenakshi Motors (P) Ltd,

Tirunelveli.

29

1.3 SCOPE OF THE STUDY

The study entitled, “A Study on consumers’ promotion

towards Sri Meenakshi Motors Pvt.Ltd., Tirunelveli” covers the

various promotional activities like exchange offer, free

trail, gift offered towards their consumers. This study

analyzes the effectiveness of advertisement of Sri Meenakshi

Motors (P) Ltd. It identifies and evaluates the consumers’

opinion towards new product promotion of Sri Meenakshi Motors.

This study helps to know the consumers’ expectation of

promotional offers from Sri Meenakshi Motors (P) Ltd,

Tirunelveli.

30

1.4 NEED OF THE STUDY

The organizations can use promotional tools as a weapon

in order to increase the sales and introducing new product in

the market for attracting more number of consumers and used to

compete with its rival environment. Hence this study is needed

for the organization. The purpose of this study to the

organization regarding the importance of consumers’ promotion.

31

1.5 LIMITATIONS OF THE STUDY

• The research study is applicable only to Sri Meenakshi Motors Pvt Ltd, Tirunelveli.

• The information given by the respondents may be biased.

32

1.6 REVIEW OF LITERATURE

Topic: Sales Promotions on Consumer Preferences

Author: Haresh B. Vaishnani

Publication year: 2002

Abstract

Behavioral research on sales promotions has tended to

focus on the demographics of deal-prone consumers (Bawa and

Shoemaker 1987; Blattberg et al. 1978; Narasimhan 1984) and on

33

the identification of personal traits such as coupon

proneness, value consciousness, or market mavenism (Feick and

Price 1987; Lichtenstein, Netemeyer, and Burton 1990 and 1995;

Mittal 1994). These studies offer a coherent portrait of the

demographic and psychographic characteristics of deal prone

consumers (for a review, see Blattberg and Neslin 1990, pp.

65-82).

However, because of their focus on individual variables, these

studies do not examine the nature, and the number, of the

specific consumer benefits of sales promotions. As a result,

most analytical and econometric models of sales promotions

simply assume that monetary savings are the only benefit

motivating consumers to respond to sales promotions (Blattberg

and Neslin 1993). Yet, some robust empirical results suggest

that monetary savings cannot fully explain why and how

consumers respond to sales promotions. For instance, why do

consumers respond more to on-shelf coupon than to a similarly

advertised temporary price reduction offering the same

monetary incentive (Dhar and Hoch 1996; Schindler 1992)? Why

do consumers respond to insignificant price reductions (Hoch,

Drèze, and Purk 1994; Inman, McAlister, and Hoyer 1990), and

why do consumers switch brands because of a coupon or a

rebate, but then do not redeem it (Bawa and Shoemaker 1989;

Dhar and Hoch 1996; Soman 1998).

Keywords: Coupons, Price discount, free gift, Trade offer,

Price sensitive.

34

2. Topic: The Effectiveness of advertising

Author: Elisabetta corvi

Publication year: 2007

Abstract

Advertising effectiveness can be defined as the extent to

which advertising generates a certain desired effect.

Measuring the effects of advertising is very important. Given

the amount of investment needed for advertising. While it is

not possible to obtain a global measure of the advertising

effectiveness, we should seek to develop and apply methods and

measures for a partial verification of results. Regarding the

difficulty of measuring the overall effectiveness, we believe

that it is due essentially to the following consideration.

Advertising interacts with other business variable

(behaviour, marketing policies, financial decision

etc...) and environment variable (competition, economic,

conjunction etc.)

The effects of advertising are varied and not always

translate into quantitative terms.

Advertising causes long term effects, therefore the

result occur in the same period in which are the cost.

35

Keywords: External factors, Attention, attitude behaviour,

Memory.

3. Topic: New product Launches and Consumer Insights-Application of Behavioural

Insights in the Marketplace

Author: S L Rao

Publication year: 2004

Abstract:In this launching new products and some insights into

consumer behavior that drove them or arose from them. Product

launches in those years were centred round manufacturing

capability. The consumer had limited choice. So did the

manufacturer who had limited options in features that he could

offer in the product. But most did consider what the consumer

wanted, her considerations in taking the purchase decision,

and ways in which it could be in favour of a particular

36

product. The consumer’s attitudes, habits and preferences were

relevant and were studied. Today of course this is much more

the case. Production capacities, packaging, pricing, use

instructions, distribution, advertising and promotion, should

usually have resulted from the understanding and

interpretation of these consumer attributes.

Many products succeeded despite the lack of such

preparatory studies because of the monopoly that was conferred

by production and import licensing and the copying of products

that had succeeded in overseas markets. In the illustrations

that I give, consciously and in a planned manner or

intuitively, consumer behaviour was at the core of all

decisions that had to do with the product. Over time, the

consumer’s concerns began to be integrated into all decisions

relating to new products, and marketing strategy became

business strategy. Many products and brands that dominated

consumer franchise for many years and others that were

successfully launched, have declined or disappeared now after

many years. The reasons have been varied: changing economic

situation; new consumer contexts, behaviours and preferences;

competing products offering better value choices to the

consumer; lack of nimbleness of the company in adapting to

changing markets; and inability to change product images and

product forms to meet new directions in consumer behaviour.

Keywords: Test marketing, Quantitative data, direct marketing,

samples,

37

4. Topic: Customers behavioural response to sales promotion

Author: Nelson oly Ndubisi

Publication year: 2007

Abstract

This research evaluates the impact of sales promotional

tools, namely coupon, price discount, free sample, bonus pack,

and in store display, on product trial and repurchases

behavior of consumers. In addition, the moderation role of

fear of losing face on the relationship between the sales

promotional tools and product trial was examined. The samples

points for the research were supermarket in Malaysia. A total

of 420 randomly selected customers were surveyed using

structured questionnaire, out of which 312 usable responses

were received. The results of data analysis show that price

discount, free samples, bonus packs, and in store display are

associated with product trial. Coupon does not have any

significant effect on product trial. Trail determines

repurchases behavior and also mediates in the relationship

between sales promotion and repurchase. Fear of losing face

significantly moderates the relationship between in store

display and product trail.

38

Keywords: coupons, Bonus pack, in store display, product

trail, repurchase.

5. Topic: “Impact of Sales Promotions on Sale of FMCG Products”

Author: Chetan Panara

Publication year: 2011

Abstract:

FMCG industry, alternatively called as Consumer packaged

goods industry primarily deals with the production,

distribution and marketing of consumer packaged goods. The

Fast Moving Consumer Goods (FMCG) is those consumables which

are normally consumed by the consumers at a regular interval.

Some of the prime activities of FMCG industry are selling,

marketing, financing, purchasing, etc. The industry also

39

engaged in operations, supply chain, production and general

management. FMCG Industry Economy FMCG industry provides a

wide range of consumables and accordingly the amount of money

circulated against FMCG products is also very high. The

competition among FMCG manufacturers is also growing and as a

result of this, investment in FMCG industry is also

increasing, specifically in India, where FMCG industry is

regarded as the fourth largest sector . FMCG Sector in India

is estimated to grow. FMCG industry is regarded as the largest

sector in New Zealand which accounts for of Gross Domestic

Product.Common FMCG products Some common FMCG product

categories include food and dairy products, glassware, paper

products, pharmaceuticals, consumer electronics, packaged food

products, plastic goods, printing and stationery, household

products, photography ,drinks etc. and some of the examples of

FMCG products are coffee, tea, dry cells, greeting cards,

gifts, detergents, tobacco and cigarettes, watches, soaps etc.

Market potentiality of FMCG industry Some of the merits of

FMCG industry, which made this industry as a potential one,

are low operational cost, strong distribution networks,

presence of renowned FMCG companies. Population growth is

another factor which is responsible behind the success of this

industry.

Keywords: None monetary. Monetary promotions, price

sensitivity,Swithover

40

6. Topic: Format Effects in Volume Discounts to Consumers

Author : Béatrice parguel

Publication year : 2008

Abstract

Using a classification of benefits and costs of

promotional offers (Raghubir et al., 2004) along three routes –

economic, informational and affective – this paper aims at

evaluating, from the consumer’s point of view, the relative

perceptual disadvantages of separate-item bundles compared to

pre-wrapped bundles. Retailers use sales promotions in a very

intensive manner to attract customers and increase their

sales. In particular, in the volume discount sales category,

bundling is a type of promotional offer in which obtaining a

free product or money discount is linked to the purchase of a

set number of product units (Guiltinan, 1987; Stremersch and

Tellis, 2002). Implementation costs for product bundles are

very high as they incur costs associated with product

identification (creation of an identification barcode),

product manufacturing (special packaging, specific shipping)

and product management (sales previsions on a per shop basis,

shelving, inventory management). Manufacturers mainly finance

these costs, which represent their second spending effort,

after production costs (Dreze and Bell, 2003). However, one

type of bundling may avoid most of these costs. Indeed,41

separate-item bundles, enabled by the use of sophisticated

cash registers by retailers, present the products separately,

and not in a pre-wrapped format as in the case of more classic

bundles.

Keywords: Bundle formats presentation, free product, money discount, campaigns

7. Topic: current issues sales promotion

Author: Henderson

Publication year: 2005

Abstract

Systematization of knowledge on sales promotion I believe

should start from systematizing the definitions of concept. There is

lack of conformity in methodology and hence in the definition of

what can be considered sales promotion. (Kotler 1983, Levy 1971,

Shimp 1993). The word "promotion" comes from a Latin word meaning

"to move forward". So, in this case any tool(s), method(s),

technique (s) that stimulates the growth of the sales can be

considered a part of sales promotion. Sales promotions are designed

42

to have a direct impact on behavior. It is argued in the literature

that while advertising goes through the process of cognition and

then influences an action, promotion is believed to work directly on

behaviour.

Also, sales promotion gives extrinsic reason to buy a product,

whereas advertising focuses to internal qualities or brand equity of

the product. A common assumption is that advertising, word-of-

mouthor the salesperson has infromed the consumer about the product,

while sales promotion gives them additional reasons to buy."Sales

promotion is an action-focused marketing event whose purpose is to

have a direct impact on the behavior of the firm's customers".

(Blattberg, Neslin 1990). One of the aspects that is not reflected

in this operational definition is the short-term effect of

promotion.

Keywords; Trade incentives, sweepstakes, in-store support,

trial of the product.

43

1.7 RESEARCH METHODOLOGY:

Research Design:

Research designs are concerned with turning the research

question into a testing project. The best design depends on

your research questions. Every design has its positive and

negative sides. The research design has been considered as a

"blueprint" for research, dealing with at least four problems:

what questions to study, what data are relevant, what data to

collect, and how to analyze the results.

Descriptive Research Design:

Descriptive research design is a scientific method which

involves observing and describing the behaviour of a subject

without influencing it in any way.

Data Collection Method:

Questionnaire was used for data collection.

A questionnaire is a research instrument consisting of a

series of questions and other prompts for the purpose of

gathering information from respondents. Although they are

often designed for statistical analysis of the responses, this

is not always the case. The questionnaire was invented by Sir

Francis Galton.

Sources of Data:

44

1. Primary data

2. Secondary data

Primary Data:

Primary research entails the use of immediate data in

determining the survival of the market. The popular ways to

collect primary data consist of surveys, interviews and focus

groups, which shows that direct relationship between potential

customers and the companies.

Secondary Data:

In secondary data, information relates to a past period.

Hence, it lacks acceptances and therefore, it has

unsatisfactory value. Primary data is more accommodating as it

shows latest information.

Secondary data is obtained from some other organization

than the one instantaneously interested with current research

project. Secondary data was collected and analyzed by the

organization to convene the requirements of various research

objectives.

45

Sampling Methods:

This study is using the Non-Probability Sampling method.

Non probability sampling does not meet this criterion and

should be used with caution. Non probability sampling

techniques cannot be used to infer from the sample to the

general population.

Sampling Techniques:

This study is using the Convenience Sampling technique.

Convenience members of the population are chosen based on

their relative ease of access. To sample friends, co-workers,

or shoppers at a single mall, are all examples of convenience

sampling.

Sampling Size:

This study is taken the sample size is 400.

Geographical Area:

The study was done in Tirunelveli city and data was

collected from the Tirunelveli town and palayankottai

Statistical Tools:

Percentage analysis.

Weighted average method.

46

Chi-square test.

Weighted average Ranking method

Percentage Analysis:

Percentage method refers to a specified kindwhich is used in making comparison between two or more

series of data. Percentages are based on descriptive

relationship. It compares relative items. Since the

percentage reduces everything to a common base and thereby

allow meaning comparison.

No of Respondents

Percentage = ________________________ X 100

Total no. of Respondents

Weighted Average Method:

The term weight stands for relative importance ofdifferent items. Weights have been assigned to various

ranks. The weights score is calculated by multiplying the

number of respondents in a cell with their relative weights

and the whole number is summed up to give the weights score

for that factor.

n ∑ i=1 value x weight ageWeighted average = Total no of respondents

47

Chi-square test

Chi- square test is a non- parametric method that can be used

to test whether and difference between observed values and

theoretical values.

Formula:

The Chi-Square test given by the formula,

d.f (Degrees of freedom) = (m-1)*(n-1)

m = no. of rows

n = no. of columns

Row total * column

total

Expected frequency (Ei) =

--------------------------------------

Grand

total n (Oi-Ei) 2

Calculated value of Chi square test = ∑---------------------

i=1 Ei

Where;

Oi= observed frequency

Ei= expected frequency

48

Weighted average Ranking Method:

Weighted average Ranking Method it means

an average that takes into account the proportional relevance

of each component, rather than treating each

component equally.

2.1 INDUSTRY PROFILE

Motorcycle:

A motorcycle (also called a motorbike, bike, motto or

cycle) is a two or three wheeled motor vehicle. Motorcycles

vary considerably depending on the task they are designed for,

such as long distance travel, navigating congested urban

traffic, cruising, sport and racing, or off-road conditions.

Motorcycles are one of the most affordable forms of

motorized transport in many parts of the world and, for most

of the world's population; they are also the most common type

of motor vehicle. There are around 200 million motorcycles

(including mopeds, motor scooters, motorized bicycles, and

other powered two and three-wheelers) in use worldwide, or

49

about 33 motorcycles per 1000 people. This compares to around

590 million cars, or about 91 per 1000 people.

Most of the motorcycles, 58%, are in the developing

countries of Asia – Southern and Eastern Asia, and the Asia

Pacific countries, excluding Japan – while 33% of the cars

(195 million) are concentrated in the United States and Japan.

In 2006, China had 54 million motorcycles in use and an annual

production of 22 million units. As of 2002, India, with an

estimated 37 million motorcycles/mopeds, was home to the

largest number of motorized two wheelers in the world. China

came a close second with 34 million motorcycles/mopeds.

History:

The first internal combustion, petroleum fueled

motorcycle was the Petroleum Reitwagen. It was designed and

built by the German inventors Gottlieb Daimler and Wilhelm

Maybes in Bad Constant, Germany in 1885. This vehicle was

unlike either the safety bicycles or the boneshaker bicycles

of the era in that it had zero degrees of steering axis angle

and no fork offset, and thus did not use the principles of

bicycle and motorcycle dynamics developed nearly 70 years

earlier. Instead, it relied on two outrigger wheels to remain

upright while turning.

50

The inventors called their invention the Reitwagen

("riding car"). It was designed as an expedient tested for

their new engine, rather than a true prototype vehicle.

If a two-wheeled vehicle with steam propulsion is

considered a motorcycle, then the first was the French

Michaux-Perreaux steam velocipede of 1868. This was followed

by the American Roper steam velocipede of 1869, built by

Sylvester H. Roper Roxbury, Massachusetts. Roper demonstrated

his machine at fairs and circuses in the eastern U.S. in 1867,

and built a total of 10 examples.

In 1894, Hildebrand & Wolfmüller became the first series

production motorcycle and the first to be called a motorcycle.

In the early period of motorcycle history, many producers

of bicycles adapted their designs to accommodate the new

internal combustion engine. As the engines became more

powerful and designs outgrew the bicycle origins, the number

of motorcycle producers increased. Many of the nineteenth

century inventors who worked on early motorcycles often moved

on to other inventions. Daimler and Roper, for example, both

went on to develop automobiles.

The motorcycle, built in 1884 by an Englishman named

Edward Butler, looked pretty silly. It had three wheels, not

two, and was really just a tricycle with a motor.

Nevertheless, people were afraid of Butler’s motorcycle so

afraid that they asked the government to pass laws against the

new machine. One law said that there must always be three

51

people on a motorcycle. Another said that a man with a red

flag must run ahead of the motorcycle, waving the flag and

yelling to warn people that a motorcycle was coming.

Until World War I, the largest motorcycle manufacturer in

the world was Indian, producing over 20,000 bikes per year. By

1920, this honor went to Harley-Davidson, with their

motorcycles being sold by dealers in 67 countries. By the late

1920s or early 1930s, DKW took over as the largest

manufacturer.

After World War II, the BSA Group became the largest

producer of motorcycles in the world, producing up to 75,000

bikes per year in the 1950s. The German company NSU held the

position of largest manufacturer from 1955 until the 1970s.

In the 1950s, streamlining began to play an increasing

part in the development of racing motorcycles and the "dustbin

fairing" held out the possibility of radical changes to

motorcycle design. NSU and Moto Gauzy were in the vanguard of

this development, both producing very radical designs well

ahead of their time NSU produced the most advanced design, but

after the deaths of four NSU riders in the 1954–1956 seasons,

they abandoned further development and quit Grand Prix

motorcycle racing. Moto Gauzy produced competitive race

machines, and by 1957 nearly all the Grand Prix races were

being won by streamlined machines.

52

The following year, 1958, full enclosure fairings were

banned from racing by the FIM in the light of the safety

concerns:

From the 1960s through the 1990s, small two-stroke

motorcycles were popular worldwide, partly as a result of East

German Walter Karen’s engine work in the 1950s.

Today, the motorcycle industry is mainly dominated by

Japanese companies such as Honda, Kawasaki, Suzuki, and

Yamaha, although Harley-Davidson and BMW continue to be

popular and supply considerable markets. Other major

manufacturers include Piaggio group of Italy, KTM, Triumph and

Ducati.

In addition to the large capacity motorcycles, there is a

large market in smaller capacity (less than 300 cc)

motorcycles, mostly concentrated in Asian and African

countries. An example is the 1958 Honda Super Cub, which went

on to become the biggest selling vehicle of all time, with its

60 millionth unit produced in April 2008. Today, this area is

dominated by mostly Indian companies with Hero Motorcar

emerging as the world's largest manufacturer of two wheelers.

Other major producers are Bajaj and TVS Motors. For example,

its Splendor model has sold more than 8.5 million to date.

Demographics:In numerous cultures, motorcycles are the primary means

of motorized transport. According to the Taiwanese government,

for example, "the number of automobiles per ten thousand

53

populations is around 2,500, and the number of motorcycles is

about 5,000.

In places such as Vietnam, motorized traffic consists of

mostly motorbikes due to a lack of public transport and low

income levels that put automobiles out of reach for many.

The four largest motorcycle markets in the world are all

in Asia: China, India, Indonesia, and Vietnam. The motorcycle

is also popular in Brazil's frontier towns. Amid the global

economic downturn of 2008, the motorcycle market grew by 6.5%.

Recent years have seen an increase in the popularity of

motorcycles elsewhere. In the USA, registrations increased by

51% between 2000 and 2005. This is mainly attributed to

increasing fuel prices and urban congestion. A Customer

Reports subscribers' survey of mainly United States motorcycle

and scooter owners reported that they rode an average of only

1,000 miles (1,600 km) per year, 82% for recreation and 38%

for commuting. Americans put 10,000–12,000 miles (16,000–

19,000 km) per year on their cars and light trucks.

As motorcyclists age, there is a tendency for riders to

choose touring bikes over sports bikes.

Uses:

While people choose to ride motorcycles for various

reasons, those reasons are increasingly practical, with riders

54

opting for a powered two-wheeler as a cost-efficient

alternative to infrequent and expensive public transport

systems, or as a means of avoiding or reducing the effects of

urban congestion. In places where it is permitted, lane

splitting, also known as filtering, allows motorcycles to use

the space between vehicles to move through stationary or slow

traffic.

Construction:

Motorcycle construction and Motorcycle design

Motorcycle construction is the engineering,

manufacturing, and assembly of components and systems for a

motorcycle which results in the performance, cost, and

aesthetics desired by the designer.

With some exceptions, construction of modern mass-

produced motorcycles has standardized on a steel or aluminum

frame, telescopic forks holding the front wheel, and disc

brakes. Some other body parts, designed for either aesthetic

or performance reasons may be added.

A petrol powered engine typically consisting of between

one and four cylinders (and less commonly, up to eight

cylinders) coupled to a manual five- or six-speed sequential

transmission drives the swing arm-mounted rear wheel by a

chain, driveshaft or belt.

55

Fuel economy:

Motorcycle fuel economy varies greatly with engine

displacement and riding styleranging from a low of 29 mpg-US

(8.1 L/100 km; 35 mpg-imp) reported by a Honda VTR1000F rider,

to 107 mpg-US (2.20 L/100 km; 129 mpg-imp) reported for the

Veracity Nitro 50 cc Scooter.

A specially designed Matzo Matsuzawa Honda XL125 achieved

470 mpg-US (0.50 L/100 km; 560 mpg-imp) "on real highways – in

real conditions. Due to low engine displacements (100 cc–200

cc), and high power-to-mass ratios, motorcycles offer good

fuel economy.

Under conditions of fuel scarcity like 1950s Britain and

modern developing nations, motorcycles claim large shares of

the vehicle market.

Electric motorcycles:

Very high fuel economy equivalents are often derived by

electric motorcycles. Electric motorcycles are nearly silent,

zero-emission electric motor-driven vehicles. Operating range

and top speed suffer because of limitations of battery

technology.

Fuel cells and petroleum-electric hybrids are also under

development to extend the range and improve performance of the

electric motors.

56

Dynamics:

Different types of motorcycles have different dynamics

and these play a role in how a motorcycle performs in given

conditions. For example, one with a longer wheelbase provides

the feeling of more stability by responding less to

disturbances. Motorcycle tires have a large influence over

handling.

Motorcycles must be leaned in order to make turns. This

lean is induced by the method known as counter steering, in

which the rider momentarily steers the handlebars in the

direction opposite of the desired turn. Because it is counter-

intuitive this practice is often very confusing to novices –

and even too many experienced motorcyclists.

Accessories:Motorcycle accessories

Various features and accessories may be attached to a

motorcycle either as OEM (factory-fitted) or after-market.

Such accessories are selected by the owner to enhance the

motorcycle's appearance, safety, performance, or comfort, and

may include anything from mobile electronics to sidecars and

trailers.

Safety:Motorcycle safety and Motorcycle safety clothing

57

Motorcycles have a higher rate of fatal accidents than

automobiles or trucks and buses. United States Department of

Transportation data for 2005 from the Fatality Analysis

Reporting System show that for passenger cars, 18.62 fatal

crashes occur per 100,000 registered vehicles. For motorcycles

this figure is higher at 75.19 per 100,000 registered vehicles

– four times higher than for cars.

The same data shows that 1.56 fatalities occur per 100

million vehicle miles travelled for passenger cars, whereas

for motorcycles the figure is 43.47–28 times higher than for

cars (37 times more deaths per mile travelled in 2007).

Types:

Types of motorcycles

There are three major types of motorcycle: street, off-

road, and dual purpose. Within these types, there are many

different sub-types of motorcycles for many different

purposes.

Street bikes include cruisers, sport bikes, scooters and

mopeds, and many other types. Off-road motorcycles include

many types designed for dirt-oriented racing classes such as

motocross and are not street legal in most areas.

Dual purpose machines like the dual-sport style are made

to go off-road but include features to make them legal and

comfortable on the street as well.

58

Each configuration offers either specialized advantage or

broad capability, and each design creates a different riding

posture.

Legal definitions and restrictions

Legal definition of motorcycle:

A motorcycle is broadly defined by law in most countries

for the purposes of registration, taxation and rider licensing

as a powered two-wheel motor vehicle. Most countries

distinguish between mopeds of 49 cc and the more powerful,

larger vehicles (scooters do not count as a separate

category). Many jurisdictions include some forms of three-

wheeled cars as motorcycles.

Environmental impact:

In 2007 and 2008, motorcycles and scooters, due to good

fuel efficiency, attracted interest in the United States from

environmentalists and those affected by increased fuel prices.

Group Americas supported this interest with the launch of a

"Vespanomics" website and platform, citing lower per-mile

carbon emissions of 0.4 lb/mile (113 g/km) less than the

average car, a 65% reduction, and better fuel economy. United

States Environmental Protection Agency 2007 certification

result reports for all vehicles versus on highway motorcycles

(which also includes scooters).

2.2 DEALER PROFILE

59

SRI MEENAKSHI MOTORS Pvt .Ltd., TIRUNELVELI

The every business is main vital role based on marketing

concepts. The products are some better condition in meet stiff

competition. Then product only consumer or services.

The motorcycle dealer only on consumer satisfaction

towards the service to successful run and wide range of

development on sales and service

They dealer in some introduction new vehicle and some

improvement on one year to another year.

Another main dealer concern on Sri Meenakshi Honda motors

to Tirunelveli. the employee on training program in service

vehicle and methods into learn only permitted on students some

years ago talents person mechanic mark level, so another

mechanic ship employee are permitted in the job on service

field.

Profile:

Sri Meenakshi Honda motors agency in Tirunelveli started on

October 31, 2004. Managing director is Mr.T.Dalton

Vision:

Honda motor will be responsive to customer requirements

consonant with its core competence and profitability. Honda

motor will provide total customer the right product, at the

right price, at the right time.

60

Mission:

We are committed to being a highly profitable, socially

responsible, and leading manufacturer of high value for money,

environmentally friendly, life time personal transportation

products under the Honda motors for customers to provide

fulfilment and prosperity for employees.

Department:

Sales

Service

accounts

HONDA MOTORCYCLE MODELS

Honda CBT twister

Honda CB unicorn

Honda Dream yuga

Honda CB shine

Honda Dio

Honda CBR 150

Honda CBR 250r

Honda Aviator

Honda Activa

Honda Stunner

61

3.1 DATA ANALYSIS AND INTERPRETATION

TABLE NO: 3.1

GENDER OF THE RESPONDENTS

S.NO GENDER NO.OF RESPONDENTS PERCENTAGE (%)

1 Male 271 67.75

2 Female 189 22.25

Total 400 100

(Source: primary data)

Inference

62

From the above table shows that, 67.5% of the respondentsare male and 22.5% of the respondents are female.

CHART NO: 3.1

GENDER OF THE RESPONDENTS

Male Female0

10

20

30

40

50

60

70

67.75

22.25

GENDER

PERCEN

TAGE

TABLE NO: 3.2

AGE OF THE RESPONDENTS

S.NO AGE NO.OF RESPONDENTS PERCENTAGE (%)

1 Below-25 years

198 49.5

2 25-35 111 27.5

3 35-45 74 18.5

4 Above-45 years

17 4.5

Total 400 100

63

(Source: primary data)

Inference

From the above table shows that 49.5% of the respondents

are below 25 years of age, 27.5% of the respondents are 25-35

years of age, 18.5% of the respondents are 35-45 years of age

and 4.5% of the respondents are above-45 years of age.

CHART NO: 3.2

AGE OF THE RESPONDENTS

Below 25 25-35 35-45 Above 450

10

20

30

40

50

60

49.5

27.518.5

4.5

AGE

PERCEN

TAGE

TABLE NO: 3.3

QUALIFICATION OF THE RESPONDENTS

S.NO QUALIFICATION NO.OF. RESPONDENTS PERCENTAGE (%)

1 School 109 27.752 DIP/IT 124 313 UG 111 27.754 PG 32 85 Illiterate 24 6

64

Total 400 100

(Source: primary data)

Inference

From the above table shows that 31% of the respondents

are Diploma holders and/IT Graduates, 27.75% of the

respondents are up to school level education, and under

graduate, 8% of the respondents are post graduate, and 6% of

the respondents are illiterate.

CHART NO: 3.3

QUALIFICATION OF THE RESPONDENTS

school Dip/IT UG PG illiterate

0

5

10

15

20

25

30

3527.75

3127.75

86

Education

Percen

tage

CHART NO: 3.4

OCCUPATION OF THE RESPONDENTS

65

S.NO OCCUPATION NO.OF RESPONDENTS PERCENTAGE (%)

1 Student 189 47.252 Professional 18 4.53 Business people 39 9.54 House wife 48 125 Government

Employee 41 10.25

6 Private Employee 55 13.75Total 400 100

(Source: primary data)

Inference

From the above table shows that 47.25%

of the respondents are students, 13.75% of the respondents are

private employee, 12 % of the respondents are house wife,

10.25 % of the respondents are government employee, 9.5 % of

the respondents are business people and remaining 4.5 % of

the respondents are professionals.

CHART NO:3.4

OCCUPATION OF THE RESPONDENTS

Student

Professional

Business people

House wife

Government employee

Private employee

0 5 10 15 20 25 30 35 40 45 50

47.25

4.5

9.5

12

10.25

13.75

PERCENTAGE

OCCUPA

TION

66

TABLE NO: 3.5

AWARENESS OF SRI MEENAKSHI MOTORS

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Friends & relations 51 12.75

2 colleagues 116 293 Magazine 41 10.254 Newspaper 17 4.255 Banner 21 5.256 Pamphlets 118 29.57 Road show 36 9

Total 400 100

(Source: primary data)

Inference

From the above table shows that 29.5%

of the respondents said Pamphlets, 29% of the respondents

said colleagues, 12.75% of the respondents said

advertisement, 10.25% of the respondents said magazine, 9% of

the respondents said Road show, 5.25 % of the respondents said

banner, and 4.25% of the respondents said newspaper towards

the awareness of Sri Meenakshi Motors.

CHART NO: 3.5

AWARENESS OF SRI MEENAKSHI MOTORS

67

friends & relationsmagazine

bannerroadshow

0

5

10

15

20

25

30

12.75

29

10.25

4.25 5.25

29.25

9

AWARENESS OF SRI MEENAKSHI MOTORS

PERCEN

TAGE

TABLE NO.3.6

PURCHASED VEHICLE FROM SRI MEENAKSHI MOTORS ALREADY

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Yes 219 54.75

2 No 181 45.25

Total 400 100

(Source: primary data)

Inference

From the above table shows that

54.75% of the respondents are purchased the vehicle already,

and 45.25% of the respondents are not purchased the vehicle

already.

68

CHART NO: 3.6

PURCHASED VEHICLE FROM SRI MEENAKSHI MOTORS ALREADY

yes no0

10

20

30

40

50

60

54.75 45.25

PURCHASING VEHICLE

PERCEN

TAGE

TABLE NO: 3.6 (A)

VEHICLES PURCHASED FROM SRI MEENAKSHI MOTORS ALREADY

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 CBT Twister 19 8.672 CB Unicorn 23 10.503 Dream yuga 38 17.354 CB Shine 50 22.835 Dio 30 13.696 CBR 150R 5 2.317 CBR250R 3 1.368 Aviator 16 7.319 Activa 24 10.9510 CBF Stunner 11 5.02

Total 219 100(Source: primary data)

Inference

69

From the above table shows that 22.83% of the

respondents said CB Shine, 17.35% of the respondents said Dream

yuga, 13.69% of the respondents said Dio, 10.95% of the respondents

said Activa, 10.50% of the respondents said CB Unicorn, 8.67 % of

the respondents said CBT Twister, 7.31% of the respondents said

Aviator, 5.02% of the respondents said CBF Stunner, 2.31% of the

respondents said CB 150R, and 1.36% of the respondents said CB 250R

Honda model bike purchased from Sri Meenakshi Motors.

CHART NO: 3.6 (A)

VEHICLES PURCHASED FROM SRI MEENAKSHI MOTORS ALREADY

CBT Tw

ister

CB Uni

corn

Dream

yuga

CB Shi

ne Dio

CBR 15

0R

CBR250

R

Aviato

r

Activa

CBF St

unner

0

5

10

15

20

25

8.67 10.5

17.35

22.83

13.69

2.31 1.36

7.3110.95

5.02

VEHICLES PURCHASED HONDA MODEL

PERCEN

TAGE

TABLE NO: 3.6 (B)

WEIGHTED AVERAGE RANKING METHOD

PROMOTIONS OFFERED IN PURCHASING VEHICLE

Particulars

Rank1

Rank2

Rank3

Rank4

Rank5

Rank6

Rank7

Rank8

Weighted mean

Rank

Gift 16 13 22 32 37 19 41 37 23.19 8Coupon 8 17 32 42 23 32 17 48 23.75 7

Free trial

19 40 31 29 17 18 32 31 27.22 5

70

Exchangeoffer

32 42 21 36 23 29 17 19 30.22 4

Loan 40 23 29 39 31 31 19 19 31.22 3

service 45 32 17 39 18 29 36 15 33.86 1Insurance

41 39 42 23 17 32 20 15 32.11 2

Money save benefit

13 17 30 21 39 41 23 35 24.11 6

(Source: Primary data)

Weightages

Rank 1 = 5 points

Rank 2 = 4 points

Rank 3 = 3 points

Rank 4 = 2 points

Rank 5 = 1 point

Formula

n Weighted average = ∑ i=1 (value x weightage) Total no of respondents

Inference:

From the above table shows that, most of the respondents

ranked promotional tools as first service followed by

71

Insurance, Loan , Exchange offer, Free trial, Money save

benefit, Coupon, Gift towards consumer promotional tools

respondents received.

72

TABLE NO: 3.7

RESPONDENTS OPINION IN CHOOSING SRI MEENAKSHI MOTORS

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Attractiveness 74 18.52 Immediate

response 67 16.75

3 Gifts 12 12.254 After sales

service 138 34.5

5 Exchange offer 91 22.756 Seasonal offer 14 3.57 Others 2 0.5

Total 400 100(Source: primary data)

Inference

From the above table shows that 34.5% of the

respondents said After sale service, 22.75% of the

respondents said exchange offer, 18.5% of the respondents

said Attractiveness, 16.75% of respondents said immediate

response,12.25 % of the respondents said gift , and 3.5% of

the respondents said seasonal offer, and 0.5% of the

respondents said other promotions in choosing Sri Meenakshi

Motors.

CHART NO: 3.7

RESPONDENTS OPINION IN CHOOSING SRI MEENAKSHI MOTORS

73

Attrac

tivene

ss

immedi

ate re

sponse gif

t

After

sale s

ervice

Exchan

ge off

er

season

al off

eroth

ers0510152025303540

18.5 16.75 12.25

34.522.75

3.5 0.5

Axis Title

Axis Title

TABLE NO: 3.8

EXPECTATIONS FROM SRI MEENAKSHI MOTORS FOR NEXT PURCHASE

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Reduced price 55 13.752 Sweepstakes&

contest 107 26.75

3 Premium offer 104 264 Loyalty program 87 21.755 Rebates 45 11.256 others 2 0.5

Total 400 100 (Source: primary data)

Inference

From the above table shows that

26.75% of the respondents expected sweepstakes, 26% of the

respondents expected premium offer, 21.75% of the respondents

expected loyalty program, 13.75% of the respondents expected

74

Reduced price, 11.25% of the respondents expected rebates,

and 0.5% of the respondents expected others promotion.

CHART NO: 3.8

EXPECTATIONS FROM SRI MEENAKSHI MOTORS FOR NEXT PURCHASE

reduce

d pric

e

sweept

akes &

conte

st

premiu

m offe

r

loyalt

y prog

ram

rebate

s

others

05

1015202530

13.75

26.75 2621.75

11.25

0.5

RESPONDENTS EXPECTATION

PERCEN

TAGE

TABLE NO: 3.9

DIFFER FROM COMPETITORS FOR CONSUMER PROMOTION

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 After sale service 63 15.75

2 Quick response 122 30.53 Loan facility 69 17.254 Insurance 76 195 Speed delivery 70 17.756 Others - -

Total 400 100

75

(Source: primary data)

Inference

From the above table shows that 30.5%

of the respondents said quick response, 19% of the respondents

said Insurance, 17.75% of the respondents said speed

delivery.17.25% of the respondents said loan facility, and

15.75% of the respondents said after sales service.

CHART NO: 3.9

DIFFER FROM COMPETITORS FOR CONSUMER PROMOTION

after sale service loan facility

speed delivery

0

5

10

15

20

25

30

35

15.75

30.5

17.25 1917.75

0

DIFFER FROM COMPETITORS

percen

tage

TABLE NO: 3.10

WEIGHTED AVERAGE METHODRESPONDENTS OPINION TOWARDS PERFORMANCE OF SRI MEENAKSHI

MOTORS

PARTICULARS HS S NS DS HDS Weighted

AverageSeasonal offer

55 217 115 2 11 3.75

New product 43 158 192 5 2 3.62

76

offerService 22 112 77 6 2 1.75Advertisement 55 217 107 17 4 3.87(Source: Primary date)

Weightages:

HS = Highly satisfied = 5

Points

S = Satisfied = 4

Points

NS = Neutrally satisfied = 3

Points

DS = Dissatisfied = 2

Points

HDS = Highly dissatisfied = 1

Point

Formula

n ∑

i=1 (value x weightage) Weighted average = Total no of respondents

Weighted average mean = Weighted average value

Total number of attributes

Weighted average mean value = 12.99

4

77

Weighted average mean value = 3.25 = 3

Interpretation:From the above analysis, it is inferred that most of the

respondents are neutrally satisfied with the Advertisement as

the performance of Sri Meenakshi Motors ltd.

78

TABLE NO: 3.11

RESPONDENTS PREFERING TOOL TO PURCHASE VEHICLE

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Price sensitive 52 132 Money save benefit 80 203 Service 211 52.754 Loan 57 14.25

Total 400 100(Source: primary data)

Inference

From the above table shows that 52.75% of

the respondents said service, 20% of the respondents said

money save benefit, 14.75 % of the respondents said loan

facility, and 13% of the respondents said price sensitive as

preferring tool to purchase the vehicle.

CHART NO: 3.11

79

RESPONDENTS PREFERING TOOL TO PURCHASE VEHICLE

price senstitive

money benefit service loan0

10

20

30

40

50

60

1320

52.75

14.75

RESPONDENTS PREFERENCE

PERCEN

TAGE

TABLE NO: 3.12

WEIGHTED AVERAGE RANKING METHOD

RESPONDENTS OPINION TOWARDS CONSUMER PROMOTIONAL TOOLS

Particulars

Rank1

Rank2

Rank3

Rank4

Rank5

Rank6

Rank7

Rank8

Weighted mean

Rank

Gift 15 50 32 39 43 144 55 22 44.31 8Price sensitive

67 63 55 18 37 108 27 44 50.97 6

Money save benefit

40 50 45 35 42 118 100 20 48.63 7

Exchangeoffer

32 90 55 86 82 15 30 10 57.69 3

Loan & insurance

89 41 136 45 38 16 20 15 63.75 1

service 122 68 32 30 35 58 39 16 61.16 2coupons 36 45 48 51 78 75 32 35 52.27 5Free trail

13 57 72 82 117 17 30 12 53.77 4

80

(Source: Primary data)

Weightages

Rank 1 = 5 points

Rank 2 = 4 points

Rank 3 = 3 points

Rank 4 = 2 points

Rank 5 = 1 point

Formula

n ∑ i=1 (value x weightage)Weighted average = Total no of respondents

Inference:

From the above table shows that, most of the respondents

ranked promotional tools as first Loan & insurance followed by

service, Exchange offer, free trial, Coupon, price sensitive,

Money save benefit, Gift among the respondents opinion about

the various consumer promotional tools.

81

TABLE NO: 3.13

RESPONDENTS OPINION TOWARDS MEDIA OF ADVERTISEMENT

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

82

1 Campaign 30 7.52 Pamphlets 131 32.753 Banner 53 13.254 Bus panel 64 165 Teaser 122 30.5

Total 400 100 (Source: primary data)

Inference

From the above table shows that 32.75% of

the respondents said pamphlets, 30.5% of the respondents said

teaser, 16 % of the respondents said bus panel, 13.25 % of the

respondents said Banner, and 7.5% of the respondents said

campaign towards the media of advertisement

CHART NO: 3.13

RESPONDENTS OPINION TOWARDS MEDIA OF ADVERTISEMENT

campagin pamphlets banner bus panel teaser

0

5

10

15

20

25

30

35

7.5

32.75

13.75 16

30.5

MEDIA OF ADVERTISEMENT

percen

tage

TABLE NO: 3.14

83

RESPONDENTS OPINION TOWARDS THE ATTRACTIVENESS OFADVERTISEMENT

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Strongly Agree 142 35.52 Agree 228 573 Neutral 30 7.54 Disagree - -5 Strongly Disagree - -

Total 100 100 (Source: primary data)

Inference

From the above table shows that 57% of the

respondents are agreed, 35.5% of respondents are strongly

agreed and, 7.5 % of the respondents are neutrally agreed

towards the attractiveness of advertisement to purchase

vehicle.

CHART NO: 3.14

RESPONDENTS OPINION TOWARDS THE ATTRACTIVENESS OFADVERTISEMENT

84

strongly agree agree neutral disagree strongly

disagree

0

10

20

30

40

50

60

35.5

57

7.5

0 0

ATTRACTIVENESS OF ADVERTISEMENT

PERCEN

TAGE

TABLE NO: 3.15

RATING THE ATTRACTIVENESS OF ADVERTISEMENT

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Very attractive 77 19.252 Less attractive 297 74.253 Not all

attractive 26 6.5

Total 400 100

(Source: primary data)

Inference

From the above table shows that 74.25%

of the respondents said less attractive, 19.25% of the

respondents said very attractive and, 6.5 % of the respondents

85

said not at all attractive towards the advertisement of Sri

Meenakshi motors.

CHART NO: 3.15

RATING THE ATTRACTIVENESS OF ADVERTISEMENT

Very attractive

Less attractive

Not all attractive

0 10 20 30 40 50 60 70 80

19.25

74.25

6.5

PERCENTAGE

ATTRAC

TIVENESS

OF ADVE

RTISEM

ENT

TABLE NO: 3.16

RESPONDENTS SATISFACTION LEVEL OF ADVERTISEMENT

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Highly Satisfied 57 14.25

2 Satisfied 262 65.53 Neutral 62 15.54 Dissatisfied 13 3.255 Highly

Dissatisfied 6 1.5

Total 400 100

86

(Source: primary data)

Inference

From the above table shows that 65.5% of the

respondents are satisfied, 15.5% of the respondents are

neutrally satisfied, 14.25 % of the respondents are highly

satisfied, 3.25% of the respondents are dissatisfied, and 1.5%

of the respondents are highly dissatisfied.

CHART NO: 3.16

RESPONDENTS SATISFACTION LEVEL OF ADVERTISEMENT

Highly

satis

fied

Satisf

ied

Neutra

l

Dissat

isfied

Highly

Dissa

tisfie

d 010203040506070

14.25

65.5

15.53.25 1.5

ADVERTISEMENT

PERCEN

TAGE

TABLE NO: 3.17

KNOWING THE NEW HONDA BIKE MODELS BY THE RESPONDENTS

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)1 Yes 362 90.5

87

2 No 38 9.5Total 400 100

(Source: primary data)

Inference

From the above table shows that 90.5% of the

respondents know new Honda bike model and 9.5% of the

respondents don’t know new Honda bike models.

CHART NO: 3.17

KNOWING THE NEW HONDA BIKE MODELS BY THE RESPONDENTS

Yes

No

0 10 20 30 40 50 60 70 80 90 100

90.5

9.5

PERCENTAGE

NEW HO

NDA BIKE

MODEL

TABLE NO: 3.17 (A)

88

RESPONDENTS AWARE OF NEW HONDA BIKE MODEL

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)1 Dream Yuga 241 66.572 HET Scooters 121 33.43

Total 362 100

(Source: primary data)

Inference

From the above table shows that 66.57% of

the respondents said new bike model Dream Yuga, and 33.43% of

the respondents said new bike model HET Scooters.

CHART NO: 3.17(A)

RESPONDENTS AWARE OF NEW HONDA BIKE MODEL

Dream yuga HET Scooters0

10

20

30

40

50

60

70

66.57

33.43

AWARE OF NEW HONDA BIKE MODEL

PERCEN

TAGE

89

TABLE NO: 3.18

PROMOTIONS OFFERED FOR NEW HONDA BIKE MODEL

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)1 Campaign 3 3.252 Teaser 186 46.53 Test ride 165 41.254 Trade offer 18 4.55 Point of purchase

display 4 1

Total 400 100

(Source: primary data)

Inference

From the above table shows that 46.5 % of the

respondents said teaser, 41.25% of the respondents said test

ride, 4.5 % of the respondents said trade offer, 3.25 % of the

respondents said campaign, and 1 % of the respondents said

point of purchase display towards the promotions offered for

new Honda bike models.

CHART NO: 3.18

PROMOTION OFFERED FOR NEW HONDA BIKE MODEL

90

campaign teaser test ride trade offer point of

purchase

05

101520253035404550

3.25

46.541.25

181

PROMOTION FOR NEW BIKE MODEL

PERENT

AGE

TABLE NO: 3.19

WEIGHTED AVERAGE RANKING METHOD

RESPONDENTS OPINION TOWARDS NEW PRODUCT PROMOTIONS

S.

No Particulars

Rank

1

Rank

2

Rank

3

Rank

4

Rank

5

Average Rank

1 Campaign 79 70 68 66 79 72.67 3

2 Teaser 112 102 88 32 28 88.26 1

3 Test ride 101 122 165 41 33 86.86 2

4 Trade offer 32 28 75 93 134 54.96 5

5 Point of

purchase38 40 66 130

88 59.73 4

91

(Source: Primary data)

Weightages

Rank 1 = 5 points

Rank 2 = 4 points

Rank 3 = 3 points

Rank 4 = 2 points

Rank 5 = 1 point

Formula

n ∑ i=1 (value x weightage)Weighted average = Total no of respondents

Inference:

From the above table shows that, most of the respondents

ranked promotional tools as first Teaser, followed by Test

ride, Campaign, point of purchase, Trade offer among the

respondents opinion about new product promotional tools.

.

92

TABLE NO: 3.22

RESPONDENTS OPINION IN RECOMMENDING OTHERS TO BUY THE VEHICLEIN SRI MEENAKSHI MOTORS Pvt .Ltd.

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)1 Yes 332 832 No 68 17

93

Total 400 100

(Source: primary data)

Inference

From the above table shows that 83 % of the

respondents said that they recommend others to buy and 17 % of

the respondents said that they won’t recommend others to buy

vehicle in Sri Meenakshi Honda Motors Pvt Ltd.

CHART NO: 3.22

RESPONDENTS OPINION IN RECOMMENDING OTHERS TO BUY THE VEHICLEIN SRI MEENAKSHI MOTORS Pvt .Ltd.

Yes No0

10

20

30

40

50

60

70

80

90

83

17

RECOMMEND OTHERS TO BUY THE VEHICLE

PERCEN

TAGE

TABLE NO: 3.22 (A)

RESPONDENTS REASONS IN RECOMMENDING OTHERS TO BUY THE VEHICLEIN SRI MEENAKSHI MOTORS Pvt .Ltd.

94

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Seasonal offer 52 132 New product offer 70 22.53 Service 221 55.754 Exchange offer 57 14.25

Total 400 100(Source: primary data)

Inference

From the above table shows that 55.75% of

the respondents said service, 22% of the respondents said New

product offer, 14.75 % of the respondents said Exchange offer,

and 13% of the respondents said seasonal offer as the reasons

in recommending others to buy the vehicle in Sri Meenakshi

Motors Pvt Ltd.

CHART NO: 3.22 (A)

RESPONDENTS REASONS IN RECOMMENDING OTHERS TO BUY THE VEHICLEIN SRI MEENAKSHI MOTORS Pvt .Ltd

seasonal offer

New product offer

Service

Exchange offer

0 10 20 30 40 50 60

13

22.5

55.75

14.25

PERCENTAGE

REASON

S IN RE

COMMENED

ING OT

HERS

95

TABLE.NO.3.23

RESPONDENTS OPINION IN SWITCH OVER OF SRI MEENAKSHI MOTORSPvt .Ltd

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)1 Yes 42 10.52 No 358 89.5

Total 400 100

(Source: primary data)

Inference

From the above table shows that 89.5% of the

respondents said that they won’t Switch over, and 10.5% of the

respondents said that they switch over the Sri Meenakshi

Motors Pvt Ltd.

CHART NO : 3.23

RESPONDENTS OPINION IN SWITCH OVER OF SRI MEENAKSHI MOTORSPvt .Ltd.

Yes No0102030405060708090

10.5

89.5

RESPONDENTS OPINION IN SWITCH OVER OF SRI MEENAKSHI MOTORS

PERCEN

TAGE

96

TABLE NO: 3.23 (A)

RESPONDENTS REASON FOR SWITCH OVER OF SRI MEENAKSHI MOTORS Pvt.Ltd.

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)

1 Low response 12 28.572 Poor quality of

service 10 23.80

3 Lack of festival offers 13 30.95

4 Lack of variety ofbike colour model 7 16.66

Total 42 100(Source: primary data)

Inference

From the above table shows that 30.95% of

the respondents said Lack of festival offers, 28.57% of the

respondents said Low response, 23.80 % of the respondents said

Poor quality of service, and 16.67% of the respondents said

Lack of variety of bike colour model as the reason for switch

over of Sri Meenakshi Motors Pvt Ltd.

CHART NO: 3.23 (A)

RESPONDENTS REASON FOR SWITCH OVER OF SRI MEENAKSHI MOTORS Pvt.Ltd.

97

Low response

Poor quality of service

Lack of festival offers

Lack of variety of bike colour model

0 5 10 15 20 25 30 35

28.57

23.8

30.95

16.66

PERCENTAGE

RESP

ONDENTS

REASON FOR

SWITC

H OVER

TABLE NO: 3.21

THE RELATIONSHIP BETWEEN SATISFACTION LEVEL ON PROMOTIONALOFFERS AND ITS STIMULATING LEVEL ON PURCHASING VEHICLE

Satisfaction Level on promotional offer

s Stimulating Purchasingvehicle

HighlySatisfied

Satisfied

NeutrallySatisfied

Dissatisfied

Highly Dissatisfied

Total

Very high 25 20 10 31 24 110

High 12 35 20 11 12 90

Moderate 12 25 15 12 12 76

Low 11 13 13 11 10 58

Very low 23 18 11 7 7 52

98

Total 83 111 69 72 65 400

(source: primary data)

NULL HYPOTHESIS: There is no relationship between

satisfaction level on promotional offers and its stimulating

level on purchasing vehicle.

ALTERNATIVE HYPOTHESIS: There is a relationship between

satisfaction level on promotional offers and its stimulating

level on purchasing vehicle.

Level of significant 0.05

The Chi-Square test given by the formula,

d.f (Degrees of freedom) = (m-1)*(n-1)

m = no. of rows

n = no. of columns

= (5-1)*(5-1)

= 4*4

= 16

Row total * column

total

Expected frequency (Ei) =

--------------------------------------

Grand

total

n ( Oi-Ei)2

99

Calculated value of Chi square test = ∑

---------------------

i=1 Ei

Where;

Oi= observed frequency

Ei= expected frequency

Calculated value =47.63

Table value = 34.43

Since the calcaluated value is higher than tabulated

value, alternative hypothesis is accepted.

Inference :

There is a relationship between the satisfaction

level on promotional offers and its stimulating level on

purchasing vehicle.

100

4.1 FINDINGS

67.5% of the respondents are male.

49.5% of the respondents are in the age group of

below 25 years.

31% of the respondents are Dip/IT Graduates.

27.75% of the respondents are up to the school level

of education.

47.25% of the respondents are students.

29.5% of the respondents said pamphlets in aware of

Sri Meenakshi Honda Motors Pvt Ltd.

54.75% of the respondents are purchased the vehicle

already in Sri meenakshi motors.

22.83% of the respondents purchased HONDA CB Shine

from Sri Meenakshi Honda Motors Pvt Ltd.

Service -31% of the respondents said service as the

promotion offered while purchasing vehicle.

34.5% of the respondents said after sale service as

the reason for choosing Sri Meenakshi Honda Motors

Pvt Ltd.

26.75% of the respondents expected sweepstakes as

benefit for next purchase.

30.5% of the respondents said quick response as the

differ of Sri Meenakshi Honda Motors Pvt Ltd from

its competitors.

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Most of the respondents are neutrally satisfied with

the Advertisement as the performance of Sri

Meenakshi Honda Motors Pvt Ltd.

52.75% of the respondents said service as preferred

tool in purchasing vehicle.

Among the various consumer promotional tools, the

loan & Insurance holds the rank first, next to loan&

Insurance, service holds the second rank.

32.75% of the respondents said Pamphlets as the

media of Advertisement; 30.5% of the respondents

said teaser as the media of Advertisement.

57% of the respondents are agreed towards

attractiveness of advertisement.

74.25% of the respondents said advertisement is less

attractive.

65.5% of the respondents are satisfied towards

advertisement of Sri Meenakshi Honda Motors Pvt Ltd.

90.5% of the respondents know the new Honda bike

models of Sri Meenakshi Honda Motors Pvt Ltd.

66.57% of the respondents know about Dream Yuga.

46.5% of the respondents said teaser as the new

product promotion of Sri Meenakshi Honda Motors Pvt

Ltd.

Among the various new product promotional tools,

Teaser holds the rank first, next to Teaser; Test

ride holds the second rank.

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83 % of the respondents recommend others to buy the

vehicle in Sri Meenakshi Honda Motors Pvt Ltd.

55.75% of the respondents said service as the reason

to recommend others in order to buy the vehicle in

Sri Meenakshi Honda Motors Pvt Ltd.

89.5% of the respondents said that they won’t switch

over Sri Meenakshi Honda Motors Pvt Ltd.

30.95% of the respondents said Lack of festival

offers as the reason for switch over of Sri

Meenakshi Honda Motors Pvt Ltd.

There is a relationship between the satisfaction

level on promotional offers and its stimulating

level on purchasing vehicle.

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4.2 SUGGESTIONS

The organization can implement advertisement strategy

which is attractive and known to all consumers by the

methods like television advertisement and radio

announcement.

Benefits like sweepstakes, premium offer and loyalty

programme, are expected by the respondents. So the

organization can add these benefits in addition with its

promotional tools.

The organization can implement innovative new product

promotion tools like providing novelties, conducting

presentations about vehicle.

The organization may announce the festival offers in

order to retain existing customers and to attract the new

consumers.

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5.1 CONCLUSION

Consumer Promotion is like promoting the business to

potential customers which gives an opportunity to increase the

sales, gain a competitive advantages and enhancing awareness

about the range of products or services of an organization.

From this study it is clear that most of the consumers are

satisfied with offers like seasonal offers, new product offer

and service rendered by the organization. If the organization

follows the researchers suggestions like implementing festival

offers and providing promotions like sweepstakes and contest,

loyalty programme, the customers could be retained and can

reach new consumers.

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BIBLIOGRAPHY

REFERENCE BOOK

Philip Kotler and Kevin Lane, Marketing Management, (PHI

Learning / Pearson

Education 13th Edition, 2008)

Donald R. Cooper and Pamela S. Schindler, Business

Research methods ,(9th

Edition, Tata Mc Graw Hill, 2006)

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Wells, Moriarty & Burnett, Advertising, Principles &

Practice, (Pearson Education

7th Edition, 2007)

WEBSITES:

http://smallbusiness.chron.com/consumer-sales-promotion-

techniques-1035.html

http://en.wikipedia.org/sales promotion

http://managementhelp.org/marketing/advertising/

methods.htm#anchor4293953708

www.marketingteacher.com/lesson-advertisement/lesson-

salespromotion.html

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