Corrected Minor Project222
Corrected Minor Project222
INTRODUCTION
Sales promotion is the process of persuading a potential customer to buy the product. Sales
promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as
a method of building long-term customer loyalty. Some sales promotions are aimed at
consumers. Others are targeted at intermediaries and at the firm's sales force.
Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts
of the promotional mix are advertising, personal selling, direct marketing and publicity/public
relations.) Media and non-media marketing communication are employed for a pre-
determined, limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples include contests, coupons, freebies, loss leaders, point of
purchase displays, premiums, prizes, product samples, and rebates.
Sales promotions can be directed at either the customer, sales staff, or distribution
channel members (such as retailers). Sales promotions targeted at the consumer are called
consumer sales promotions. Sales promotions targeted at retailers and wholesale are called
trade sales promotions. Some sale promotions, particularly ones with unusual methods, are
considered gimmicks by many.
Sale promotions often come in the form of discounts. Discounts impact the way
consumers think and behave when shopping. The type of savings and its location can affect
the way consumers view a product and affect their purchase decision. The two most common
discounts are price discounts (“on sale items”) and bonus packs (“bulk items”). Price
discounts are the reduction of an original sale by a certain percentage while bonus packs are
deals in which the consumer receives more for the original price. Many companies present
different forms of discounts in advertisements, hoping to convince consumers to buy their
products
Such efforts seem inevitable in today’s marketing situation. It can also reduce the
degree of consumer dissatisfaction. Nowadays, sales promotional efforts are undertaken for
variety of purposes. It is among the most critical and expensive marketing decisions.
Sales promotion covers those marketing activities other than advertising, publicity,
and personal selling that stimulate consumer purchasing and dealer effectiveness. Sales
promotion mainly involves short-term and non-routine incentives offered to dealers as well as
consumers. The popular methods used for sales promotion are demonstration, trade show,
exhibition, exchange offer, seasonal discount, free service, gifts, credit facilities, contests, and
so on.
Philip Kotler (1936) “Those marketing activities other than personal selling,
advertising, and publicity that stimulate consumer purchasing and dealer effectiveness, such
as display, shows, demonstrations, expositions, and various other non-current selling efforts,
not in ordinary routine.”
Robert C. and Scott A.: “Sales promotion consists of a diverse collection of incentive
tools, mostly short-term, designed to stimulate quicker and/or greater purchase of particular
products/services by consumers or traders.”
Sales Promotion is one of the four aspects of promotion i.e. advertising, personal
selling, and publicity/ public relations. According to AMA, “sales Promotion includes all
those sales activities that supplement both personal selling and advertising and coordinate
them and help to make them effective such as displays, shows and exhibitions,
demonstrations and other non-recurrent selling efforts not used in the ordinary routine.”
Sales promotion offers a direct inducement to act by providing extra worth over and
above what is built into the product at its normal price. These temporary inducements are
offered usually at a time and place where the buying decision is made. Not only are sales
promotions very common in the current competitive market conditions, they are increasing at
a fast pace. These promotions are direct inducements. In spite of the directness, sales
promotions are fairly complicated and a rich tool of marketing with innumerable creative
possibilities limited only by the imagination of promotion planners. Sales promotion is often
referred to by the names of ‘extra purchase value’ and ‘below-the-line selling’. Today we
find companies in almost all sectors offering some sort of a promotion scheme. These sectors
range from automobiles to beverages, from 11 financial services to foods, from household
durables to services, from household products to business products, from personal care to
textiles and apparel. (Boon rod, 2009). In recent years, sales promotion has been used widely
to supplement and coordinate advertising and personal selling efforts. Various sales
promotion tools such as free samples, premium on sale, prize contests, dealer incentives,
coupons and gifts, etc., are being used to stimulate market demand for products of daily use.
The basic purpose is to stimulate on the spot buying through short term and nonrecurring
incentives.
Money off coupons customers receive coupons, or cut coupons out of newspapers or a
products packaging that enables them to buy the product next time at a reduced price. This
money coupon helps the customer to avail the discount on the next or upcoming purchases.
Competitions buying the product will allow the customer to take part in a chance to win a
prize. The customers are provided a chance to participate in a competition and win an
exciting prize.
Discount vouchers a voucher (like a money off coupon). Discount vouchers are same like
the money voucher.
Free gifts a free product when buy another product. The customer is provided with a free gift
at a time of purchase in order to retain the customer and provided better purchasing
experience.
Point of sale materials e.g. posters, display stands – ways of presenting the product in its
best way or show the customer that the product is there.
Loyalty cards e.g. Nectar and Air Miles; where customers earn points for buying certain
goods or shopping at certain retailers – that can later be exchanged for money, goods or other
offers Loyalty cards have recently become an important form of sales promotion. They
encourage the customer to return to the retailer by giving them discounts based on the
spending from a previous visit. Loyalty cards can offset the discounts they offer by making
more sales and persuading the customer to come back. They also provide information about
the shopping habits of customers – where do they shop, when and what do they buy? This is
very valuable marketing research and can be used in the planning process for new and
existing products.
Exchange offer An exchange offer, in finance, corporate law and securities law, is a form of
tender offer, in which securities are offered as consideration instead of cash. Loan A loan is a
debt provided by an entity (organization or individual) to another entity at an interest rate,
and evidenced by a promissory note which specifies, among other things, the principal
amount of money borrowed, the interest rate the lender is charging, and date of repayment. A
loan entails the reallocation of the subject asset(s) for a period of time, between the lender
and the borrower. The loan is generally provided at a cost, referred to as interest on the debt,
which provides an incentive for the lender to engage in the loan. In a legal loan, each of these
obligations and restrictions is enforced by contract, which can also place the borrower under
additional restrictions known as loan covenants. Although this article focuses on monetary
loans, in practice any material object might be lent. Acting as a provider of loans is one of the
principal tasks for financial institutions such as banks and credit card companies. For other
institutions, issuing of debt contracts such as bonds is a typical source of funding.
The motorcycle industry is a dynamic and global sector that revolves around the design,
production, marketing, and distribution of motorcycles and related products. Motorcycles,
two-wheeled vehicles powered by internal combustion engines or electric motors, have a rich
history dating back to the late 19th century. They have evolved from basic, single-cylinder
machines to advanced, high-performance vehicles catering to a diverse range of riders and
purposes.
**Global Market Size: The industry's market size varies from year to year and region
to region. It is influenced by factors like economic conditions, consumer preferences,
and transportation needs.
**Safety Measures: Safety is a top priority, with innovations such as ABS (Anti-lock
Braking System), traction control, and protective gear playing critical roles in
reducing accidents and enhancing rider safety.
**Market Regulations: The industry operates under various safety and environmental
regulations, which vary by region and impact product design and sales.
**Riding Culture: Motorcycling is often associated with a unique riding culture and
community, including motorcycle clubs, rallies, and events.
**Impact of the COVID-19 Pandemic: The motorcycle industry, like many others,
was affected by the COVID-19 pandemic, resulting in supply chain disruptions and
changes in consumer behaviour.
**Future Trends: The industry's future will likely be shaped by emerging trends, such
as autonomous motorcycles, increased connectivity, and the growth of electric
mobility.
The motorcycle industry is diverse and constantly evolving to meet the changing needs and
desires of riders. It maintains a strong connection to culture, community, and the thrill of the
open road, making it a significant and enduring part of the transportation landscape. For the
latest and most detailed information on the motorcycle industry, it is advisable to consult
industry reports, trade publications, and official sources within the sector.
Hero MotoCorp is one of the largest motorcycle manufacturers in the world, headquartered in
India.
**Research and Development**: Hero MotoCorp has a strong focus on research and
development to innovate and develop new products. They have a dedicated R&D
centre in Jaipur, Rajasthan.
**Market Share**: Hero MotoCorp is one of the market leaders in the Indian two-
wheeler industry and has a substantial market share.
**Awards and Recognition**: Hero MotoCorp has received numerous awards and
accolades for its products and contributions to the industry.
Royal Enfield is a well-known motorcycle manufacturer based in India with a rich history.
**Founded**: Royal Enfield's history dates back to 1893, making it one of the oldest
motorcycle manufacturers in the world.
**Products**: Royal Enfield is famous for its retro-styled, classic motorcycles. They
offer a range of cruiser and retro-styled bikes, with their most iconic models being the
Bullet, Classic, and the more recent Interceptor 650 and Continental GT 650.
**Global Presence**: Royal Enfield has a strong presence in India and has expanded
to various international markets, including Europe, North America, and Asia.
**Manufacturing Facilities**: The company has multiple manufacturing facilities in
India, including their main plant in Chennai, which is one of the largest motorcycle
manufacturing facilities in the world.
**Heritage**: Royal Enfield has a rich heritage, with its motorcycles often associated
with a bygone era of classic, rugged, and enduring designs.
**Innovation**: In recent years, Royal Enfield has modernized its product lineup
with the introduction of new models featuring advanced technologies while retaining
their classic appeal.
**Awards and Recognition**: The company has received several awards and
accolades for its products, design, and contributions to the motorcycle industry.
**Founded**: TVS was founded in 1978 as a division of TVS Group but became a
separate entity in 2001.
**Global Presence**: TVS has a global footprint and exports its vehicles to many
countries around the world.
**Innovation**: TVS is known for its innovative approach, and they have introduced
technologies like the TVS Apache series with advanced features, among others.
**Awards and Recognition**: TVS has received various awards and accolades for its
products and contributions to the automotive industry.
Suzuki Motorcycles India is the Indian subsidiary of Suzuki Motor Corporation, a renowned
Japanese motorcycle manufacturer. Established in 2006, Suzuki Motorcycles India has
rapidly gained a presence in the Indian motorcycle market.
**Company History** Suzuki Motorcycles India began its operations in the Indian
market with a clear focus on producing and selling motorcycles and scooters. They
entered the Indian two-wheeler market with a commitment to quality and innovation,
aiming to meet the diverse needs of Indian consumers.
**Notable Models** Some of the notable Suzuki motorcycle models in India have
included the Suzuki Gixxer series, Suzuki Access scooters, Suzuki Intruder cruiser,
and more. These models have been designed to appeal to various customer
preferences and riding styles.
**Manufacturing Facilities** Suzuki Motorcycles India has a manufacturing facility
in Gurugram, Haryana, where they produce and assemble motorcycles for the Indian
market.
**Sales and Service Network** The company has steadily expanded its network of
dealerships and service centres across India, ensuring that customers have access to
sales, service, and spare parts support.
Yamaha Motor India is the Indian subsidiary of Yamaha Motor Co., Ltd., a prominent
Japanese motorcycle manufacturer. As of my last knowledge update in September 2021, here
is a brief profile:
**Product Range**: Yamaha Motor India manufactures and sells a wide range of
motorcycles and scooters for the Indian market. Their product line-up includes
popular models like the Yamaha FZ series, YZF R15, Ray ZR, and more.
**R&D**: They also have a Research and Development centre in India focused on
developing products tailored to local preferences and market demands.
**Innovation**: Yamaha is known for its innovation in design and technology, and it often
introduces advanced features and designs in its two-wheelers.
The study indicates promotional programs such as sampling, couponing, sales inducing etc.
carried out through various locations in kerala. Creation and implementation of new
promotional events. The study will be sales oriented character of any promotion. The study
focuses on the target groups. Study on effective management of promotional material and
free product handling. Follow up of any promotion activity.
RESEARCH METHODOLOGY
2.1 RESEARCH
knowledge.
Research is the process of discovering the unknown and rediscovering the known.
practice of an art."
of critical investigation.
The consistent effort to discover new things through scientific methods is called
research.
discover new things, correct existing facts and establish new conclusions. It
In this study, the descriptive research design is used to carry out the study. It helped us to
differentiate the salesman opinion about the occurring events.
2.4 DATA-SOURCE
Data source is the process by which companies extract and integrate data from multiple
internal and external sources.
1) Primary data
2) Secondary data
PRIMARY DATA
Primary data are those collected by the investigator himself for the first time and those they
are original in character.
b) Personal interview:- It is a face to face communication between the investigator and the
respondents .
SECONDARY DATA
The use of data collected by a person for his research work by another person for his research
study is known as secondary data. The information contained in the RBI Bulletin is primary
data for the Reserve Bank of India. The same information used by a person or organization
for a particular purpose is secondary data.
Primary data in the hands of a person will be secondary data for another person.
To make a research, various surveys are conducted. They are as follows: The various data
collected are from primary and secondary source through the questionnaires: books, journals,
old reports and annual report were used. Personal interview was really helpful to understand
the emotions and expectation of the customer of the company. personal interview was helpful
for me to collect the data and information.
Primary data is received from first hand sources such as: direct observation, interview,
survey, and questionnaire etc. On the other hand, secondary data is received from secondary
sources such as: printed material and published material etc.
The secondary data are readily available from the other sources and as such, there are no
specific collection methods. The researcher can obtain data from the sources both internal and
external to the organization. The sources of secondary data are:
Internet
Company information
Reports and feedback from the dealer, salesmen, and manager
Observation Method
This is a method of primary data collection in which researchers collect data based on their
personal observation. For-example if a researcher wants to collect data about the employee’s
job satisfaction in any organization. For this purpose researcher will interact with employees
to observe their behaviour in order to assess their job satisfaction.
Personal Interview
This is a method of data collection in which questionnaire is used as a data collection tool.
Mail Survey
Mail survey is a primary data collection method in which questionnaire is used as a data
collection tool. In mail survey, researchers mail questionnaires to the respondents. The
respondents then fill the questionnaire and return at their convenience.
SAMPLING
Sampling Design
Sampling allows concentrating our attention upon a relatively smaller number of people and
hence, to devote more energy to ensure that the information collected from them is accurate.
Convenience Sampling
• Sampling Size
The sample size for the study is calculated by using the 5 managers of the organisation.
3.1 Analysis
1.What does management consider the role of sales force in promotion of sales?
Table 3.1.1
Total 1 1 1 1 1 5 100%
Chart 3.1.1
INTERPRETATION
Suzuki and Yamaha says that management consider sales force in promotion of sales
are most important. Royal Enfield says that says that management consider sales force
in promotion of sales are very important. TVS and Hero says that management
consider sales force in promotion of sales are important.
2.Does management take step to motivate the salesman for better performance in your
company?
Table 3.1.2
Sometimes 0 0 0 0 0 0 0%
Total 1 1 1 1 1 5 100%
Chart 3.1.2
INTERPRETATION
3.Which methods of motivation are being used for salesman in your company?
Table 3.1.3
Commission 0 1 0 0 1 2 40%
on sales
Total 1 1 1 1 1 5 100%
Chart 3.1.3
INTERPRETATION
TVS says that providing travelling allowances to salesman are being used to motivate
their salesman. Suzuki and Yamaha says that incentives to salesman are being used to
motivate their salesman. Royal Enfield says that commission on sales to salesman are
being used to motivate their salesman.
4.How familiar are you with the current sales promotions and incentives?
Table 3.1.4
Total 1 1 1 1 1 5 100%
Chart 3.1.4
INTERPRETATION
All companies are very familiar with their sales promotion activities.
5.Do you believe our current sales promotions are effective in driving customer
purchase?
Table 3.1.5
Chart 3.1.5
INTERPRETATION
Suzuki, Royal Enfield and Hero says that that their sales promotional activities are
highly effective for driving the customers. TVS and Yamaha says that their sales
promotional activities are moderately effective for driving the customers.
6.What challenges, if any, have you encountered while communicating about sales
promotions with customers?
Table 3.1.6
Chart 3.1.6
INTERPRETATION
TVS and Yamaha says that attitude of customer are the challenges faced by them
while communicating to their customers. Suzuki, Royal Enfield and Hero says that
response of customer are the challenges faced by them while communicating to their
customers.
7.How do you often do you proactively promote your current sales offers to customers
during your interactions?
Table 3.1.7
Never 0 0 0 0 0 0 0%
Total 1 1 1 1 1 5 100%
Chart 3.1.7
INTERPRETATION
Royal Enfield, TVS MotoCorp and Hero always promote their vehicle. Suzuki and
Yamaha occasionally promote their vehicles. Hero promote their vehicles rarely.
8.What strategies or techniques do you find most effective in conveying the value of
your sales promotions to customers?
Table 3.1.8
Total 1 1 1 1 1 5 100%
Chart 3.1.8
INTERPRETATION
Suzuki, Royal Enfield, Hero and TVS says that advertisement is the most effective for
conveying to the customers. Yamaha says that displaying in public place is the most
effective for conveying to the customers.
9.Are there specific products or services that you believe could benefit from additional
sales efforts?
Table 3.1.9
Total 1 1 1 1 1 5 100%
Chart 3.1.9
Yes No
INTERPRETATION
All companies believe that additional promotion can increase their specific products
sales.
10.Have you received any feedback or suggestions from customers regarding the sales
promotions?
Table 3.1.10
Total 1 1 1 1 1 5 100%
Chart 3.1.10
Yes No
INTERPRETATION
11.How well do you understand the terms and conditions of your sales promotions?
Table 3.1.11
Chart 3.1.11
INTERPRETATION
Royal Enfield, Yamaha and Hero says that they understand their terms and conditions
very well. Suzuki and TVS says that they understand their terms and conditions
moderately well.
12.Are there any training or resources you believe would help you better utilize the sales
promotions in your sales efforts?
Table 3.1.12
6
5
4
3
2
1
0
Suzuki Royal TVS Motor Yamaha Hero
Enfield Motor MotoCorp
Company
Series 1
INTERPRETATION
All companies say that effective training for staff can help to utilize the sales
promotion activities.
13.What improvements are changes would you suggest for the sales promotion
strategies to make them more effective for your role?
Table 3.1.13
6
5
4
3
2
1
0
Suzuki Royal TVS Motor Yamaha Hero
Enfield Motor MotoCorp
Company
Series 1
INTERPRETATION
Suzuki and Hero MotoCorp say that enquiry to customers helps to improvement of
sales promotion. Suzuki and Hero say that providing questionnaire help to improve
sales promotion.
14.Would you like to receive additional training or materials related to the sales
promotions?
Table 3.1.14
Total 1 1 1 1 1 5 100%
Chart 3.1.14
Yes No
INTERPRETATION
15.Please provide any additional comments or insights regarding your sales promotion
efforts that you think would be valuable for us to know.
Table 3.1.15
Chart 3.1.15
6
5
4
3
2
1
0
Suzuki Royal TVS Motor Yamaha Hero
Enfield Motor MotoCorp
Company
Series 1
INTERPRETATION
All companies say that vehicle demonstration help to increase their sales.
3.2 FINDINGS
4.1 SUGGESTIONS
4.2 CONCLUSION
Our team members have selected 5 different franchises for our project. It is the concluded
that sales promotion is important to improve the sales of the company and to reach new
customers. Each and every organization should have a good strategic plan for their promotion
to withstand in the market with huge competition. The discounts and loyalty program in the
company will improve the sales by attracting new customers. The best sales promotion will
help the company to fulfil the organizational objectives. The sales promotion is must to
improve their sales in every organizations. The sales is monitored based on the promotional
activities practiced by the organization, the company should have better promotional
activities practiced in the organization to estimate the sales. Therefore, the sales promotion
plays a vital role in the organization to fulfil the organizational goals and objectives. The
company should frame the best strategic plan to meet the competition in the market and fulfil
the customer needs. Many authors has proved that the sales promotion is the key that helps
the company to achieve the sales.
4.2 BIBLIOGRAPHY
REFERENCES
[1] Frank Kuper (2008) Advertising and sales promotion (Vol.2) No. 29 Industry like
manufacturing.
[2] Roddy Mullin (2010) Power of sales promotion and digital marketing (Vol. 1) No. 229
with relation to automobile industry.
[3] Mitch Carson (2011) Behaviour of silent salesman and product promotion, 1st Edition
No. 179.
[4] Ken Kasar (2012) Principle and practices of sales promotion (edition 3) No.6
[6] Craig Andrews (2014) Delivering the fundamentals (9th Edition) No. 17
[7] Dr. Sc. Almira Curri-Mehmeti (2015) Communication and relationship management
(Vol.7) Pg. No 77.
[8] Nikolaos Georgantzis (2016) Promotional effect and direct selling pg. No 45
[9] Christian Boris Brunner (2016) Strategic planning and sales promotional effect on
business.
[10] A'dillah Mustafa (2015) Digital marketing system in Malaysia (Vol no. 10)
https://www.heromotocorp.com/en
https://www.royalenfield.com/in/en
https://www.tvsmotor.com
https://www.suzukimotorcycle.co.in
https://www.yamaha-motor-india.com/
https://www.wikipedia.org
4.3 APPENDIX
1.What does management consider the role of sales force in promotion of sales?
[ ] Most important
[ ] Very important
[ ] Important
2.Does management take step to motivate the salesman for better performance in your
company?
[ ] Always
[ ] Sometimes
[ ] Often
3.Which methods of motivation are being used for salesman in your company?
[ ] Travelling allowances
[ ] Incentives
[ ] Commission on sales
4.How familiar are you with the current sales promotions and incentives?
[ ] Very familiar
[ ] Somewhat familiar
[ ] Not familiar
5.Do you believe your current sales promotions are effective in driving customer purchase?
[ ] Highly effective
[ ] Moderately effective
[ ] Not effective
6.What challenges, if any, have you encountered while communicating about sales
promotions with customers?
7.How often proactively promote your current sales offers to customers during your
interactions?
[ ] Always
[ ] Occasionally
[ ] Rarely
8.What strategies or techniques do you find most effective in conveying the value of your
sales promotions to customers?
9.Are there specific products or services that you believe could benefit from additional sales
promotion efforts?
[ ] Yes
[ ] No
10.Have you received any feedback or suggestions from customers regarding the sales
promotions?
[ ] Yes
[ ] No
11.How well do you understand the terms and conditions of your sales promotions?
[ ] Very well
[ ] Moderately well
12.Are there any training or resources you believe would help you better utilize the sales
promotions in your sales efforts?
13.What improvements are changes would you suggest for the sales promotion strategies to
make them more effective for your role?
14.Would you like to receive additional training or materials related to the sales promotions?
[ ] Yes
[ ] No
15.Please provide any additional comments or insights regarding our sales promotion efforts
that you think would be valuable for us to know.