northern motors

8/7/2019 northern motors

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TEACHER CERTIFICATE

This is to certify that RENU BALA student ofM.com II , has undertaken project

work on the topic ADVERTISING & SALES PROMOTION at

NORTHERN MOTORS PRIVATE LIMITED. He is sincere in his project.

To the best of my knowledge and belief the work is original and has not been

presented anywhere else.

Dr. Naresh Malhotra

H.O.D in Commerce Dept.

Doaba College, Jalandhar

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STUDENT DECLARATION

This is to certify that I RENU BALA D/o Sh. PARAMHANS has undergone

Summer training in NORTHERN MOTORS PRIVATE LIMITED and

prepared the project report entitled ADVERTISING & SALES PROMOTION

based on it.

RENU BALA

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ACKNOWLEDGEMENT

With an introduction of the professional courses the students are getting an

opportunity to get the practical knowledge along with the theoretical knowledge.

Such kinds helps us in getting the practical knowledge about the workings of

medical concerns. Therefore, I would like to thank all the persons who have been

instrumental in the completion of my project report. It gives me pleasure in

acknowledging invaluable assistance extended to me by various personalities in the

successful completion of this learning.

I am grateful to , DOABA COLLEGE , JALANDHAR and Dr Naresh

Malhotra, Head of Commerce Department for his inspiration and guidance that

has encouraged me a lot in the successful completion of this project.

RENU BALA

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PREFACE

Today is an era of consumerism. Consumer is considered as a king of the

market. In such a competitive world no company can survive without using its

promotional tools. Out of four Ps of marketing [Product, Price, Place and

Promotion]. Promotion is the most important element as it communicates with

market about other elements of marketing mix. Although promotion consists of

various tools like public relations, direct marketing, personal selling, advertisement

and sales promotion. But advertisement and sales promotion is the most popular

means of promotion. This may be due to many reasons involving cost factor, its

scope etc.

This survey was conducted to know the impact of advertisements and sales

promotional techniques on the sales of the concern thus finding out the position of

the concern.

This report contains genuine and true information regarding the awareness

of customers about the advertisement techniques of the concern. The study is a true

representation of Northern Motors and a sincere effort has been made to bring

about the lucid facts and it is hoped that this report meets the given expectations

and various requirements of the research.

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Profile

About Us

Northern Motors ( P) Ltd. Established in 1927 as Northern Motors Ltd; in

Rawalpindi now in Pakistan. Started Business as dealers of General Motors USA

for Buicks , Chevrolet & Mak Trucks. Holding a territory from Delhi onwards, till

North East frontier now in Pakistan.

Started business with Hindustan Motors in 1953 when General Motors left India.

Since then have continued as their dealer in Punjab, dealing in Ambassador,

Lancer & HM commercial vehicles.

Our sister concern are Rakesh Enterprises, Kirpa Ram Ram Ji Dass & Sons etc,

dealing with Leather Chemicals, Rubber chemicals. Dealer for NOCIL, paints &

allied products.Northern Motors (P) Ltd;, celebrated its 75 years in 2003, has been awarded for

best marketing activity all India, best maintains & designed showroom, all India

Highest Customer satisfaction rating given by Customers.

Having Hindustan Motors Dealership for Jalandhar & Amritsar as since 1984 for

whole of Punjab since 2002. We are striving to expand our business. Aport from a

Flag ship dealer ship in Jalandhar we have started a Flag ship show room in

Ludhiana , having Sales , service & spares under one roof.

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6

Like our sales department, the service operation, can equally boast:

"Nobody knows Mitsubishi like us!"

Our technicians have all undergone extensive training, with most of

them completed in excess of twenty years service each. Your car could not be

in safer hands. To ensure that you suffer the least inconvenience when your car

is serviced or repaired, we offer a collect and deliver service from your doorstep within Jalandhar and Ludhiana radius. Whatever your requirement please

give us a call and we will do our best to ensure your total satisfaction.

At the Mitsubishi Showroom your car is handled by trained professionals. A

dedicated team of company engineers is present to assist you and offer his

professional opinion when required.

SPECIAL FEATURES:

Peace of mind motoring

Removes un expected and non-budgeted casts of break down

Can be transferred, having increases the resale value.


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Mitsubishi LANCER

Inheriting its characteristics from

the four world rally championship

titles, Lancer is everything that

you always wanted your car to

be.

Mitsubishi CEDIA

When you see the Cedia for the

frist time, you'll promise yourself

it won't be the last. It doesn't just

catch your attention. It grabs it by

the collar and leaves only after

making a lasting Impression.

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Mitsubishi PAJERO

Life is a journey. One that is full of

surprises. Highs and lows. Twists

and turns. Sometimes calm.

Sometimes gruelling. But there are

times you just have to keep going,

no matter what. it's exactly what the

Pajero expects every time you take it

out.

Mitsubishi OUTLANDER

The Mitsubishi Ourlander is now in

India to give you the best of both

worlds - The pleasure of smooth 22WD

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mode for fuel - efficient driving and the

rugged 4WD mode for mastering the

toughest terrain.

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10

To keep your car always perfect and to make

them the king on the road, our professional

always suggests you to used the company

owned spares and products. Northern Motors

provide you all the quality spares at

reasonableprice.

With warehouses in both Delhi & Chennai,

you are sure to find any spare that your Lancer

might required, at the showroomitself.

If idea of owning a car is still running from

pillar to post, going from services centre to

spare parts shop to showroom, then we urge

you to visit the Lancer Showroom today. You

will see how a truly professional sales and

services showroom can make getting the

Lancer serviced, as relaxing as driving it.

To keep your car always perfect and to make them the king on the road, our

professional always suggests you to used the company owned spares and

products. Northern Motors provide you all the quality spares at reasonable

price. For both safety and reliability it is imperative that the correct

replacement part is used on your vehicle. The only way to ensure this to fit a

genuine manufacturer's part available from Mitsubishi. In the event we do not

hold the item on our shelf we have the backup of Mitsubishi Parts order

facility enabling us to source the part normally within the following 36 hours.

Whatever your needs: Parts, Accessories or even advice, please call any of ourbranches who will be happy to help.


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11

Working / Bussiness

hrs.

Mon - Sat: 9:00 am

to 6:00 pm

Jalandhar Office NORTHERN MOTORS PVT. LTD.

Address Opp Govt. Nursery, G.T.Road

Jalandhar 144 001 (Pb.)INDIA

Phone: +91-181-2225092

Mobile +91-98141-16405

Contact Person Mr. Ajay Wadera

E-mail: [email protected]

[email protected]

Mitsubishi Website: www.mitsubishi-motors.co.in

Ludhiana Office NORTHERN MOTORS PVT. LTD.

Address

G.T ROAD, Outside Octori Post (west),

Jalandhar Byepass

Ludhiana 141005

Phone +91-161-2801892

Mobile +91-94170-44420

Contact Person Mr. Sachin Goyal

E-mail: [email protected]
mailto:[email protected]:%[email protected]://www.mitsubishi-motors.co.in/mailto:[email protected]:%[email protected]://www.mitsubishi-motors.co.in/mailto:[email protected]:[email protected]


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Objectives of Northern Motors

To provide hassle free total transportation solutions

To retain our position as leading distributors and service provider in industry

To remain profitability viable

TO remain proactive to match the changing scenarios

To retain our image amongst the best in automobile business

To achieve excellence in business and practices

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PRODUCTS RANGE AT NORTHERN MOTORS

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OBJECTIVES OF THE STUDY

The study has been conducted to analyze the influence of advertisements on

the sales of the concern.

However, the specific objectives of the study are as follows :

1) To study the advertisement plan of NORTHERN MOTORS.

2) To study the sales promotion plan of NORTHERN MOTORS.

3) To see the impact of advertisements on the sales and profits of the

concern.

4) To study that what proportion of total expenses is spent on advertisement

and sales promotion.

5) To study the pattern of their advertisement.

6) To evaluate the steps that can be taken to curb the proportionate amount

of expenses so as to bring them proportionate to the profits.

7) To study the response of the customers due to various advertisements and

sales promotion.

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RESEARCH METHODOLOGY

Research Methodology is a careful investigation or inquiry in a systematic

manner and finding solution to a problem under investigation. It includes

collection of data, data representation and time span.

Research is a careful investigation or inquiry especially through search for new

facts in branch of knowledge: market research specifies the information. Required

to address these issue: designs the method for collecting information: manage and

implements the data collection process analyses the results and communicates the

findings and their implications.

Research problem is the one which requires a researcher to find out the best

solution for the given problem that is to find out the course of action, the action the

objectives can be obtained optimally in the context of a given environment.

COLLECTION OF DATA :

The purpose of the study was to know the impact of advertisements on the

customers and on the sales trend of the concern.

Primary Data : Primary data is defined is the first time data collected. This

type of data was collected through the consumer survey. For this purpose, an

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appropriate structured questionnaire was designed and that was filled by the 35

customers of the concern.

Secondary Data : These types of data have already been collected bysomeone else and which have already been passed through the statistical process.

The methods/techniques used to collect the secondary data are Magazines,

Newspaper, Pamphlets and various websites.

DATA PRESENTATION :

Data is represented in the form of pie-diagrams and bar graphs.

These diagrams depict the clear answers that are given by the customers of

the concern.

Further, the graphs are used to represent the changing sales trend of the

concern over different months due to change in advertising criteria.

Sample Plan

Sample Size : - 100 respondents of Jalandhar city were selected.

Sampling Unit: Jalandhar

Sampling Technique: - Convenient Sampling

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LIMITATIONS OF THE STUDY

1) The study was restricted to Jalandhar City only. Wider area covered

would have made the more reliable and representative.

2) Consumers were sometime unwilling and hesitated in replying to answer

the questionnaire.

3) The size due to shortage of time, sample taken was small only of 35

persons and may not be sufficient to predict the result with 100%

accuracy and hence findings cannot be generalized.

4) Staff of the concern is usually busy in attending customers, so full

attention was a difficult for them.

5) The scope of study was restricted to urban areas only.

6) Despite the best efforts to include all-important aspects the chances of

unintentional exclusion of few cannot be ruled out.

7) The websites relating to automobiles are not easy accessible. Hence it

does not provide full support to gather information.

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INTRODUCTION TO STUDY

Doing Business without Advertising is like winking at a girl in the dark,

you know what you are doing, but no body else.

Stewat. H. Brite

WHAT IS ADVERTISING?

The term advertising is derived from the original Latin word advere which

mean to turn the attention allocation if the readers or the listeners or the viewers or

the own bookers towards the product or service or idea therefore. It can be said that

any thing that turn the attention to an article or a service might be called as

advertising.

Every piece of advertising guarantees satisfaction of human wants and wants

stems from needs and desires. Advertisers, manufacturers and dealers use this

media to communicate the message to the target audience.

DEFINITIONS:

According to American Marketing Association (AMS) :

Any paid form of non-personal presentation or promotion of ideas, goods

or services of an identified sponsor.

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Prof. Strach has defined advertising in the following words :-

It is selling in printing or presenting a commodity in commodity in print to

the people in such a way that they may be induced to buy it.

In the words ofLittlefield and Krik Patrick:

Advertising is mass communication of information intended to persuade

buyers so as to maximize profits.

According to the Brain Box ofProf. P. White:

Advertisement is a purchased publicity, directed according to a definite

plan to secure, maintain and increase the distribution and consumption of a

product.

Thus, Advertising is the growing business and gaining importance day by

day. But still it is in its infancy stage. For the executive have little confidence in

advertising. They rely upon personal selling.

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Definite

Plan Ideas, goodsor services

Identified

S onsor

Non-

Personal

Paid

Form


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Advertisement is an integral part of our social and economic system.

Concentrating for which on the motivational construction, the advertiser and the

suspect system, namely advertising agencies and medias, have only a very limited

role. Social scientists gave advertising a form using the base of physically against

the background of socio-economic norms. These media men begin an uptake

assimilate the advertising concepts swiftly and adopts it as a part of marketing mix.

Perhaps advertising comes first followed by marketing certainly there can be no

marketing transactions without meaningful communication. This does not simply

provide information about products and services. But is an active attempt by every

appeal to reason or emotion and advertising as being one of the marketing trend,

affects the status of the firm.

Right advertising is an essential as the right product, the right price, the right

distribution on channel and personal willing. This necessarily calls for right

advertisement planning.

ADVERTISING PROCESS

There are various models, which explain how promotional elements i.e.

advertising, sales promotion, personal selling, publicity and public relation works.

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Communication models aim at explaining the possible sequence through which

advertising may eventually affect buyer. The most important models are :

1. AIDA Model :

It was developed to represent the stages a sales person must take a consumer

through in the personal selling process. The effect is the action into which a

prospect may be induced as a result of advertising.

This model highlights the importance of catching the eye / ear of the

prospect in order to create his interest desire and finally his determination to

buy the advertised product by showing it in the final action.

2. Innovation Adoption Model :

Public evolves this model from work on the diffusion of innovation to the

adoption of the innovation. This model involves various steps as follows :

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Attention Interest Desire Action


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In this model, the challenge facing companies who launches a new product

is to create awareness and interest of consumers so that they proceed to

evaluate the viability of a new product by actual use. And by evaluating the

viability by actual trial the consumer may proceed further in adopting the

advertised product.

3. Hierarchy of Effect Model :

This model is also called LEVIDGE AND SKINER MODEL. This model

shows the process by which the advertising works and assumes that the

consumer passes through a series of steps in sequential order form initial

awareness of a product or service to actual purchase.

The basic premise of this model is that advertising effect occur over a

period of time. Advertising communication may not had to immediate

behavioral response or purchase rather a series of effects must occur with

each step fulfilled before the consumer can move to the next stage in

hierarchy.

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Awareness Interest Evaluation Trial Adoption

UnawarenesAwarness of

the product

Knowledge Liking


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MEDIAS OF ADVERTISEMENT

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PreferenceConvictionPurchaseConfirmative

Television

Direct mail

advertise

Magazines

Outdoor

advertise

Window display


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ADVERTISEMENT AND SALES PROMOTIONAL BUDGET :

The concern can decide its advertisement and sales promotion budget in

many different ways as they are decided below :

1. SHARE OF VOICE METHOD :

In this method, company market share analysis before deciding upon the

level of advertisement can be altered or increased.

2. HISTOTRICAL METHOD :

The level of budget for advertisement can also be determined by taking into

account increase or decrease in advertising cost.

3. FINANCIAL METHOD :

The Budget for the present year advertisement should be fixed according to

the business turnover or the profit margin.

4. COMPARATIVE METHOD :

Before deciding upon the extensive or intensive level of advertisement for

the present year, past year a comparative figure that shows the amount spent

an advertisement should be analyzed carefully.

5. NEED BASED THEORY :

As already determined, the budget advertisement should be fixed according

to need of the organization for either just to maintain. Advertising and sales

budget are very crucial and important house because with over budgeting,

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cost of sale will shoot up resulting in decreased profit margin and under

budgeting will result in less utilization of media efficiencies available. So

the management should check out a suitable policy for the advertisement and

sales promotion budget. But this policy should be flexible so that they can be

changed according to the change in the external condition,

For e.g. : large budget can fixed for a region where audience is less aware of

the advantages of the purchase where as budget can be curtailed down from

the area in which products are already established and penetrated into the

minds of customers.

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SALES PROMOTION CONCEPT

MEANING :

Sales Promotion refers to those marketing activities, other than personal

selling, advertising and publicity, that stimulates consumer purchasing and dealer

effectiveness, such as displays, shows and expositions, demonstration and various

non-recurrent selling efforts, not in the ordinary routines.

All forms of sponsored communication apart from activities associated

with personal selling. ROGER A.

STRONG

Today, sales promotion has been fastest growing method or promotion

because of more emphasis on persuasion and conviction.

To push up the sales, sales promotion is very necessary activity. The sales

promotional techniques depend upon many factors.

Total sales

Product Range

Individual sale of different product

Field of the sales, etc.

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In general we can say that all the efforts made by a firm to increase its sales

are included in sales promotion, it is a bridge or a connecting link converting the

gap between advertising and personal salesmanship, the two wings of promotion.

OBJECTIVES OF SALES PROMOTION

The main objectives of sales promotion are as below :

1) To supplement and to coordinate the efforts of advertising and personal

selling.

2) To stimulate the customers to make purchase at the time of purchase.

3) To introduce new products.

4) To prompt existing customers to try more. So as to increase the usage

rate by present customers.

5) To attract new customers.

6) To meet competition.

7) To encourage off-season purchases by retailers.

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ADVERTISING SALESMANSHIP


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8) To encourage wholesalers to cooperate in a manufacturers efforts to

generate more feedback from retailers.

9) To maintain customers loyalty.

10) To encourage middleman to increase their order size.

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STEPS IN SALES PROMOTION PROCESS

31

Defining the sales

promotion target

Defining the sales

promotion

objectives

Setting the

budget

Developing the

Sales Promotion

Strategy

Selecting the type

of the sales

promotion


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METHODS OF SALES PROMOTION

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Customer

Promotion

Trade

Promotion

Sales force

Promotion

To motivate

salesmen so

as to induce

Retailers

&

other

Ultimate

Consumer

Samples,

Coupons,

Contests,

Demonstrations

,

Premiums,

Price Off,

Money

Refund, Free

Gifts

Return At

Cash & Trade

Advertising

Allowances

Premium

Bonus

Free Goods

Gift Novelties

Festival Bonus

Bonus

Commission

Quota

Incentives

Gift Novelties

Sales Force

Contests &

Convention


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SALES PROMOTION ACTIVITIES :

For the marketer resorting to sales promotion, a variety of techniques are

considered for the purpose of promotion sales are as follows :

Catalogues

Coupons

Gifts

Exhibitions

After sales services

Sales promotion letters.

PLANNING FOR SALES PROMOTION PROGRAMME :

33

Defining the sales

promotion target

Setting Sales

Promotion

Objectives

Setting Sales

Promotion

Budget

Developing the

Sales Promotion

Strategy

Selecting

Type of Sales

Promotion

Coordinating

Plan

Evaluating Sales

Promotion

Effectiveness


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ADVERTISING TECHNIQUES OF THE CONCERN

Advertising techniques of any business are highly based upon media

coverage. More money is spent on media than on the preparation and completion

of the advertisement itself. Media planning has now days become extremely

complicated. Media planning is an art in itself. Some media planners understand

the qualitative aspect of the media as well as quantitative side too. And can

therefore use media in an creative manner. Following are the detail of advertising

media adopted by NORTHERN MOTORS.

1. TRADE MAGAZINES AND JOURNALS

Trade magazines and Journals are the universal mode of advertising. The

Company sees to it that their campaigns are published offer the regular

Intervals to maintain the market or to push up the sales. The magazines

mostly use for advertisements by NORTHERN MOTORSare: -

Connect Yellow Pages

Lions Club yearly Directory

New Times Jalandhar Discount Diary

Sadna Path etc.

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2. THROUGH SALES FORCE

Major promotion of the automobiles, which have to he distributed through

this concern, is done through sales force like salesmen.

3. HOARDINGS & BANNERS

For releasing an impression and lasting impact, NORTHERN MOTORS

frequently at regular intervals put large hoardings across the city, which is

captivating though to attract the masses attention and convey the meaning

behind them. The co. uses hoardings and form of:

Glow signs

Posters

Banners

4. DIRECT MAIL

ADVERTISING

It includes all form of printed

advertisements delivered to the

customer through mail or distributed from door to door a delivered by

messenger or pass on to street through leaflets. It may be handed events the

customer at the counter.

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NORTHERN MOTORS, form time to time send leaflets to the prospective

customers through different newspapers.

5. ADVERTISEMENT IN NEWSPAPER:

Newspaper is very much common and popular made of advertising that

provide wider coverage to the sales of automobiles.

NORTHERN MOTORS is using this form time to time for attaining mass

recognition.

Newspapers in which their advertisements are published are: -

Punjab Kesri

Dainik Jagran

Ajit Samachar

Akali patrika

Moreover, they also have recently launched their own Newspaper under

concern name, NORTHERN MOTORS TIMES which is source of their

own advertisement too.

6. TRADE SHOWS AND EXHIBITIONS:

To influence channel members, customers, it has become common practice

for the sellers to participate in trade shows and exhibitions. The visitors in

such shows are either customers or other trade dealers.

It participated in the exhibition held at HOTEL KINGS.

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7. SPONSORSHIP TO VARIOUS SHOWS AND GET-TOGETHER:

Various shows go on to be held from time to time. Sponsorships to them is

good of advertisements.

NORTHERN MOTORS frequently take initiative to sponsor shows like:-

Recently held MASTI night in wonderland on 2nd Nov., 2005. On the day

of KARVACHOTH, it has sponsor gifts for the get together held at HOTEL

MAYA.

On New Year celebrations also, they give sponsorships to the shows.

8. POSTERS:

A poster is a sheet of paper depicting a message. Poster may be posted on

Boards and walls of Building at different places. They are more flexible of

all outdoor media, as they can be changed frequently. This media of

advertising is not much expensive as the advertiser has to pay only the lost

of papers, printing and wages to the persons who paste papers.

The poster and Boards for advertising NORTHERN MOTORS can be

seen at various temples in the city, outside city, its poster can be seen

BOMBAY PICNIC SPOT and some other place also.

9. PAINTED DISPLAYS :

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Painted Displays refer to painted bulletins and wall paintings; these may be

painted directly by hand by articles. These may be directly structure build or

wood placed at important places or the compound walls or roofs of

buildings. These are usually of big size that can be read or seen from a

distance.

NORTHERN MOTORS is being advertising through this way also. Its

painted displays can be seen in almost every area of the city.

10.TELEVISION :

Last, but not in any way least, media for advertisement adopted by

NORTHERN MOTORS is through T.V. Advertisement. Its regularly gives

its advertisement to Win Cable which is telecasted daily.

They also gave sometimes price of automobiles, which were telecasted daily

on Win Cable News.

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SALES PROMOTIONAL ACTIVITIES

ADOPTED BY THE CONCERN

1. SALES PROMOTION LETTERS

Several large companies utilize the medium of letters for sales promotion.

These letters serve different purposes. Sometimes, they are used to give

information about company, product. Sometimes, they act as reminders for

customers to buy a particular brand. Some letters seek information from

customer on various aspects on the their purchases studies conducted on the

efficacy of latter as a medium of sales promotion indicate that a good letter

must seek action from receiver. Sales promotion letters are sent to salesman,

dealers, distributors and consumer.

2. CATALOGUES

Catalogues carry essential information and the product offered by the

company. Well-designed catalogues give complete information relating to

products, their pictures, size specifications, colour, packing, use and price.

Some deluxe catalogues are also prepared for special client etc. The products

are properly listed and indexed to facilitate order booking and processing.

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3. POINT OF PURCHASE DISPLAY

Point of purchase promotion (POP) is one of the most widely used sales

promotion. With the proliferation of brands, innovative displays have

become a prerequisite for success brand complete with each other for

consumers attention and for shelf space. The need to remain one top of the

consumers mind has become the price concern of marketers hence the

importance of POP display.

The automobiles is to be displayed to the customers for attracting their

attention. Thus, automobiles in a properly interiored showroom looks

attractive and takes over the attention. Over and above dealings of the

salesmen adds to the customers privilege in NORTHERN MOTORS.

4. TRADE FAIR AND EXHIBITIONS

Trade fairs and exhibitions are extensively used sales promotional

tools. They also form one of the oldest practices in sales promotion. Trade

fair and exhibition provide companies with the opportunity of introducing

and displaying their products. This brings companys product and consumer

in direct contact with each other.

SEEING IN BELIEVING is a concept behind large-scale

exhibitions. Similarly, on the basis of this concept, NORTHERN MOTORS

had taken an active part in the exhibition that held in the city from time to

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time. Trade Fair held at HOTEL KINGS was one of the fair entered into by

the concern, which was based specially on Chevrolet Aveo.

5. COUPONS

Coupons are distributed to the customers so as to promote the sales.

Coupons are usually launched by the concern during festival or marriage

seasons.

6. GIFTS

Distributing gifts to people customers, dealers and influential and key

people. These gifts are intended to towards the company and indirectly

promote the companys sales interest.

Various gifts every year are distributed by NORTHERN MOTORS

throughout the year like shopping bags, clocks, pens, lamps, kettles, Trays,

Lunch Boxes, ice boxes, religious books, silver bowls and silver lemon sets

glasses, cups, calendars, purses, automobiles accessories etc.

7. VARIOUS SCHEMES

NORTHERN MOTORS, every year launch various schemes on festival

seasons. This years launched schemes are:

A return ticket to GOA for a couple with the purchase of wheelers

8. OTHER SALES PROMOTIONAL ACTIVITIES FOLLOWED BY

THE COMPANY ARE:

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New Year greeting cards

Calendars

Discount, bonus etc.

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SALES DATA ANALYSIS

The Study is conducted to know the impact of advertisement and sales promotion

techniques on sales of the concern.

For this very purpose, the figures of expenditure on these expenses and the

sales figures of the concern are collected and analysed. It has been seen that firm is

earning more in those months in which more sales promotion techniques are

adopted. On the other hand, in the lean seasons, advertisements do well in

maintaining the level of sales appropriate.

It has been shown by the following trend analysis:

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TABLE I

ADVERTISEMENT EXPENSES

1-4-2005 to

31-3-06

Advertisement

Expenses (Rs.)

Inc./Dec.

(Rs.)

Inc./Dec. (1) Trend

April, 05 14400 3900 37.14 100

May 10500 2010 16.06 72.9

June 12510 2020 19.25 86.8

July 10490 14150 51.42 72.84

August 24640 3240 15.14 171.11

September 21400 2200 11.45 148.61

October 19200 4600 31.50 133.33

November 14600 940 6.04 101.38

December 15540 1040 7.17 107.91

January, 06 14500 3505 19.46 100.69

February 18005 1428 7.34 125.03

March 19400 134.95

Total 191218

Source: From Ledgers.

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Graph Showing the Trend of Advertisement Expenditure.

Trend of advertisement expenses

020406080

100120140160180

April,04

May

June Ju

ly

August

Septem

ber

October

Novem

ber

Decem

ber

J

an,0

5

February

March

Series1

INTERPRETATION:

After seeing the figures of last years advertisement expenses collected from

the concern, it can be seen that advertisements expenditure is more in the months

of August and September as these months are the commencement of festival

seasons and efforts are made by the concern to catch the attention of the customers

immediately by making them aware of the upcoming varieties in the automobiles

in the following months trend is fluctuating and is more during the peak seasons of

marriages and festivals like Diwali, Dhantiras, Karvachoth etc.

TABLE 2

SALES PROMOTION EXPENSES

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1-4-2005 to

31-3-06

Sales

Promotion

Expenses (Rs.)

Inc./Dec.

(Rs.)

Inc./Dec. (1) Trend

April, 05 840 --- ---- 1004

May 940 100 10.63 111.90

June 630 -310 -49.5 75

July 1231 +610 +48.82 146.54

August 1100 -131 -11.90 130.95

September 1790 +690 +38.54 213.09

October 2730 2730 +940 325.30

November 4005 4005 +1275 476.70

December 2012 -1993 -99.05 239.52

January, 06 1045 -967 -92.53 124.40

February 490 -555 -113.26 58.33

March 730 +240 +32.87 86.90

Total 17543


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INTERPRETATION :

The trend in the graph shows that there is too much flexibility in the rate of

expenses incurred on sales promotion expenses. The concern keeps a changing is

sales promotion schemes depending upon the period of trade and the customers

preferences. Thus, the above line graph depicts that the sales promotion expenses

are maximum in the months of November, which is the month of festivals.

As the customers purchase more in this month, they are offered maximum

discount offers, gifts other services.

GRAPH SHOWING TRENDOF SALES PROMOTION EXPENSES

Trend of sales promotion expenses

0

100

200

300

400500

600

April

,04

May

June Ju

ly

Augu

st

Sept

embe

r

Oct

ober

Nove

mbe

r

Dece

mbe

r

Jan,

05

Febr

uary

Mar

ch

trend(b)

Series1

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TABLE 3

SALES DURING THE YEAR 2005-06

1-4-2005 to

31-3-06

Amount

(Rs.)

Inc./Dec.

(Rs.)

Inc./Dec. (1) Trend

April, 05 1412823 ---- ---- 100

May 1267293 -145530 -11.48 86.69

June 1417293 +150000 10.58 100.31

July 1231193 -186100 -15.115 87.14

August 143490 +242297 +16.44 104.29

September 1869055 +395565 +21.16 132.29

October 3469730 +1600675 +46.13 245.58

November 4780501 +1310771 +27.419 338.36

December 2873015 -1907486 -66.39 203.35

January, 06 2579830 -293185 11.36 182.60

February 1564440 -101590 -64.90 110.73

March 1336930 -227510 -17.01 94.62

Total 2,52,75,593

Source : From Ledgers.

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INTERPRETATION :

The trend in the above graphs of sales shows that maximum sales in the

month of November. As the customer are offered more offers and gifts during the

festival seasons, advertisements work less than sales promotional schemes.

Thus, first sales shows increasing trend in off seasons, again declining trend.

GRAPH SHOWING TRENDOF SALES

Trend Showing Sales

0

50

100

150

200

250

300

350

400

April

,04

May

June

July

Augu

st

Sept

embe

r

Octo

ber

Nove

mbe

r

Dece

mbe

r

Jan,

05

Febr

uary

Mar

ch

trend()

Series1

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TABLE 4

COMPREHENSIVE STUDY OF ALL THE 3 TABLES

1-4-2005

to 31-3-06

Adverti-

sement

Exp.

(Rs.)

Trend

(%)

Sales

Promo-

tion Exp.

(Rs.)

Trend

(%)

Sales

(Rs.)

Trend

(%

)

April, 05 14400 100 840 100 1412823 100

May 10500 72.9 940 111.90 1267293 86.89

June 12510 86.87 630 75 1417293 100.31

July 10490 72.87 1231 146.54 1231193 87.14

August 24640 171.11 1100 130.95 1473490 104.29

September 21400 148.11 1790 213.09 1869055 132.29

October 19200 133.33 2730 325.00 3469760 245.58

November 14600 101.38 4005 476.78 4780501 338.36

December 15540 109.91 2012 239.52 2873015 203.35

Jan., 06 14500 100.69 1045 124.40 2579830 182.60

February 18005 125.03 490 58.33 1564440 110.73

March 19433 134.95 730 86.90 1336930 94.62

Total 191218 17543 25275593


INTERPRETATION:

The comparative and comprehensive study of all the 3 tables of

advertisement expenses, sales promotion expenses and sales graph depicts that

there is more impact of sales promotion expenses on the sales of the concern. The

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customers get more attracted towards the schemes and offers during festival

seasons as they are to purchase automobiles during those seasons. Advertisements

are used to cover off the declining sales in the lean seasons. Thus, advertisements

play an important role for the concern to make adequate profits in even sleeks

seasons and sales promotion techniques helps in taking advantage of boom period.

GRAPHSHOWING COMPREHENSIVE STUDYOF 3 TABLES.

0

100

200

300

400

500

600

April,2

005

M

ay

June

J

uly

A

ug.

Sept.

O

ct.

N

ov.

D

ec.

Jan,2

006

Feb

.

March

Trend(% Series1

Series2

Series3

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DATA ANALYSIS AND INTERPRETATION

The study was conducted and the primary data was collected through

questionnaire method. Such an analysis helped me a lot in having a better insight to

the concerns affairs regarding advertising and sales promotion activities. For this

purpose, around 35 customers of the concern were approached and analysis has

been shown below:

WHICH BRAND OF CAR DO YOU OWN

Table No. 1

Brand Percentage

Chevrolet 10%

Hyundai 15%

Tata 15%

Maruti 35%

Others brands 25%

10%

15%

15%

35%

25% Chevrolet

Hyundai

Tata

Maruti

Others brands

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Inference:

This Chart Indicates that 35% of the respondents own a Marutis branded cars,

15% each of the respondents owns a Hyundai & Tata brands of Car and 10% of

the respondents own a Chevrolet Brand of car respectively and remaining 25% of

the respondents owns different brands of cars. From this it can be concluded that

most of the respondents own a Maruti Companys Car. So we can say that Maruti

is the market leader because it is the old player in the automobile market and has

wide range of different cars.

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IS IT YOUR FIRST CAR

Table No. 2

Response No of Respondents PercentageYes 56 56%

No 44 44%

Total 100 100

Percentage

48%

52%

Yes

No

Inference:

This chart indicates that 56% of the respondents purchase the Car for the first time

while 44% of the respondents were already having a car. This shows that most of

the respondents were the first time Purchaser.

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(CONT). IF NO, WHICH CAR DID YOU OWN PRIOR TO

THE ABOVE BRAND

Table No. 3Brand Percentage

Chevrolet 6%

Hyundai 15%

Tata 14%

Maruti 40%

Others brands 25%

6%15%

14%

40%

25% Chevrolet

Hyundai

Tata

Maruti

Others brands

Inference:

This table indicates that 40% of the respondents own a Maruti, 15% of the

respondents own a Hyundai, 14% own a Tata , 6% own a Chevrolet and remaining

25% of the respondents have other branded cars.

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TIME OF BUYING AUTOMOBILES

No. of Person % of Person

Occasionally (Festivals) 13 37%

Occasionally (Marriages) 22 63%

TIME OF BUYING TWO WHEELERS

37%

63%

Occasionally (Festivals)

Ocasionally (Marriages)

INTERPRETATION:

37% of the people purchase cars yearly on the occasions like festivals while

63% of the people purchase cars at the time of marriages and parties.

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MOST POPULAR TECHNIQUE

Customers purchase No. of Person % of Person

Reputation of the concern 13 37%

Old links 10 29%

Sales Promotion Schemes 4 11%

Advertisements 3 9%

Others 5 14%

37%

29%

11%9%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Reputation of

the concern

Sales

Promotion

Schemes

Others

MOST POPULAR TECHNIQUE

INTERPRETATION:

Advertisements made aware those customers who are new and are wishing

to change old car after looking at the advertisements and wants to avail benefit of

sales promotional schemes.

ATTRACTION TOWARDS SALES PROMOTION SCHEMES

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Yes 26 74%

No 9 26%

ATTRACTION TOWARDS SALES PROMOTION

SCHEMES

74%

26%

Yes

No

INTERPRETATION:

74% of the population gets attracted towards the sales promotional schemes

like discount offers or free offers etc. 26% of the population does not have any

attraction towards such schemes.

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IMPACT OF MEDIA ON PURCHASE DECISIONS


Newspapers & Magazines 8 23%

Trade shows & Exhibitions 4 11%

Sponsorship in various shows 4 11%

Banners & Hoardings 2 6%

T.V. Advertisements 17 49%

Others 0 0

23%

11% 11%

6%

49%

0%0%

5%

10%

15%20%

25%

30%

35%

40%

45%

50%

Newspapers &

Magazines

Trade Shows &

Exhibitions

Sponsorship in

various shows

Banners &

Hoardings

T.V.

Advertisements

Others

IMPACT OF MEDIA ON PURCHASE DECISIONS

INTERPRETATION:

Television is the most popular media of advertisements but newspapers are

also playing an important role in stealing the attention of customers.

SATISFACTION WITH QUALITY STANDARDS OF THE CONCERN.

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Yes 32 91%

No 3 9%

SATISFACTION WITH QUALITY STANDARDS

91%

9%

Yes

No

INTERPRETATION:

91% of the population is satisfied with the quality standards of the concern

due to the good brand loyalty, market position and reputation of the NORTHERN

MOTORS and 9% of the population is not satisfied with the concern.

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SATISFACTION WITH COMPLAINT HANDLING PROCEDURE


Yes 19 55%

No 4 11%

Often 12 34%

SERVICE OF COMPLAINT HANDLING

55%

11%

34%

Yes

No

Often

INTERPRETATION :

Above table shows that 55% respondents are satisfied with grievance cell of

NORTHERN MOTORS as they provide prompt redressal to the complaint.

However, 11% are still under the category of not satisfied with the services

provided as they feel they consume a lot of time. 34% of the customers are not able

to say anything about this matter because they are fully satisfied with NORTHERN

MOTORS.

. QUALITY OF SALESMANSHIP OF NORTHERN MOTORS

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Yes 31 89%

No 4 11%

QUALITY OF SALESMANSHIP

89%

11%

Yes

No

INTERPRETATION:

89% of the customers are satisfied with the dealings done by the salesman

but 11% of the customers are not satisfied by the dealings. This may be due to the

reason that sales people are not trained well.

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IMPACT OF SERVICES PROVIDED BY THE CONCERN


Yes 29 83%

No 6 17%

IMPACT OF SERVICES PROVIDED BY THE

CONCERN

83%

17%

Yes

No

INTERPRETATION:

After sales service like guarantee card issued by the concern to the

customers at the time of each sales influence a great mass. 83% of the customers

are satisfied with after sales services provided by the concern but 17% of the

customers are not satisfied with services rendered by the concern.

FINDINGS

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The findings from the study made on advertising and sales promotion

techniques conducted in the concern are as under:

1. While managing advertisement campaigns, the NORTHERN

MOTORS keep a regular watch on activities of the competitors so that their

sales are not affected at all.

2. Sales policy and discount structure as sales promotion techniques

are formulated by taking into account competitors sales policy.

3. Strict control, consistent consumer services also promote sales.

4. Most of the population gets aware of the brands launched by the

concern through advertisements on T.V., Newspaper are also the source of

information for the 30% of the population.

5. Sales of the concern gets affected by the advertisements

throughout the year and the sales promotion schemes increase the sales

during the boom period many fold.

6. Quality standard offered by the concern is satisfactory and the

customer services offered by the concern and its hospitality to the people is

also appreciable.

7. The carss of the concern are most popular and qualitative among

the masses.

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SUGGESTIONS

In the light of prevailing threats like ever increasing competition in the local

market, government restrictions, management of human resources etc.

NORTHERN MOTORS has developed as a mature, stable and strong business

house. Certain suggestions and recommendations which might be useful as

under :

1. Investments in media should be carefully made so as to avoid the

possibility of over budgetting.

2. It should demand better accountability from advertising which must be

more business oriented, not just creative lead.

3. The concern should approach the agencies and not only depend upon the

agencies that approach the concern for advertisements. In this way they can

avoid much expenses spent on sales promotion activities.

4. The cars available at the concern should be specified in the printed

advertisements in the newspaper.

5. Sales promotion schemes should be publicized at a large scale so that

large masses should get attracted.

6. The company should try to deflect attention of customers from price of

competitors product through success full advertising campaigns.

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7. The firm should also held contest for its employees to increase their

involvement in the business and creating a feeling of family within the

concern.

8. The company should try to spend qualitatively on advertisement and

sales promotion rather than quantitatively making an expenditure on them.

9. The company should follow that policy in which their expenses are

reasonable and maximum benefit by having maximum profits through

increased sales.

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CONCLUSION

NORTHERN MOTORS, a name that has become synonymous with Auto

Trade in Northern India, has contemporary history of more than 40 years now.

Various findings reflect that the concern earns more during the marriage and

festival seasons as the people mostly purchase the cars during these seasons. Thus

we can see that generally, people purchase when they need but advertisements

throughout the year attracts the peoples attention and catch them even in slack

seasons thus, plays an important role in making equal profitability during those

seasons also. The information gathered from the interviews of customers also

depicts that advertisements and sales promotional schemes affect them and catch

their attention many folds. As, this is the concern has good name and fame in

automobile market, thus generally, they get aware by the advertisements given on

T.V. Thus, the study concludes that the target market depends upon the customers.

As said by PETER.F.DRUCKER. the only profit center is the

customer. And here the profit center i.e., the customers are mostly affected by

advertising and sales promotion techniques.

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BIBLIOGRAPHY

Verma and Aggarwal, International Marketing management, Kings

publisher, 2000.

Riso, ovid, Sales promotion hand book, USB publisher distributors Ltd.,

1993.

Rather, B.S., Advertising management, Himalaya publishers, 1999

Sontakki, C.N., Marketing Salesmanship and advertising, Kalyani publisher,

1987.

WEB SITES

www.northernmotors.com

www.google.com

www.marutiudyog.com

www.indiancarbazar.com

MAGAZINES AND NEWSPAPERS

Cars magazine

NORTHERN MOTORS Times newspaper

68
http://www.northernmotors.com/http://www.google.com/http://www.marutiudyog.com/http://www.indian/http://www.northernmotors.com/http://www.google.com/http://www.marutiudyog.com/http://www.indian/


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QUESTIONNAIRE

1. Which brand of car do you own ?

Chevrolet Hyundai

Tata Maruti

Others brands

2. Is it your first car?

Yes No

3. (Cont). if no, which car did you own prior to the above brand ?

Chevrolet Hyundai

Tata Maruti

Others brands

4. How often you purchase cars ?

Occasionally (Festivals) Occasionally (Marriages)

5. At the time of purchasing cars you rely upon (Please rank these in order of

your preference)

Reputation of concern Old links

Sales promotion schemes Advertisements

Any other (specify) : ___________________________________________

6. Do you get attracted towards sales promotional schemes like discount offers

or free offers, etc.

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Yes No

7. Which media has greater impact on your purchase decisions ? (Please rank

these in order of your preference)

Newspapers & magazines

Trade shows and exhibitions

Sponsorship in various shows

Banners & hoardings

T.V. advertisements

Any other (specify) :

_____________________________________________

8. Are you satisfied with quality standards of the concern?

Yes No

9. Are your grievances are readily attended to ?

Yes, satisfactorily

No

Often

10. Are you satisfied with the way of dealing of salesmen with you ?

Yes No

11. Do you appreciate the services provided to the customers of the concerns?

Yes No

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12. Please give your valuable suggestions that can enhance market interaction

between you and your choice of car:

_____________________________________________________________

_____________________________________________________________

northern motors

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