INTRODUCTION

Human wants are unlimited and repetitive in nature. Business activities aim

at acquiring wealth converting into desired forms and making the final product

available for exchange of human wants. Marketing occupies an important position in

the organization of a business unit. The world economy has undergone a radical

transformation in the last two decades decides geographical and cultural distances

have shrunk significantly with the advent of airplane, fax machines, global computer

and telephone linkups and world television satellite broadcasting.

These advances have permitted companies to widen substantially both their

markets and their supplier sources. Marketing is highly strategic area in business

management. Marketing includes all activities starting with the idea of producing a

product to satisfy the needs of the customers and ending with the satisfaction of

customer even after the product is old. Thus, it involves planning producing selling

and serving the customers.

Marketing may be explained as a business function entrusted with the

creating and satisfaction of customers to achieve the aims of business. Marketing is

a social process by which individuals and groups obtain what they need and want

through creating, offering and freely exchange products and services of value with

others.

‘Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, and services to create exchanges that

satisfy Individual and Organizational goals.’

-------American Marketing Association

 “Marketing is the performance of the business activities that directs the slow of

goods and services form producers to consumer”.

-------American Marketing Association

 OBJECTIVES OF THE STUDY

 To make extensive study on the existing sales promotion

 To show the sales comparison between the product separated by the

Sri Viswarupa Automotives Pvt.Ltd

 To give an idea about every detail of the product such as price, supply.

 To acquire the information regarding of the practical of the organization

 To know the various factors affecting the sale of the product.

 To give information regarding after sales service of a product.

 To find the sales promotional activities of Sri Viswarupa Automotives Pvt.

Ltd

 To assess the marketing system of Sri Viswarupa Automotives Pvt. Ltd

 To study distributing network of Sri Viswarupa Automotives Pvt. Ltd

 To analyses distributors opinion with regard to sales promotion of Sri

Viswarupa Automotives Pvt.Ltd

 To measure the promotional activities of Sri Viswarupa Automotives Pvt.Ltd

 To know consumer reaction towards the marketing activities of Sri

Viswarupa Automotives Pvt.Ltd

 To measure effective and necessary improvements

 SIGNIFICANCE OF THE STUDY

 The study under consideration titled a “study on Sales Promotion activities”

of SRI VISWARUPA AUTOMOTIVIES PVT.LTD, MORAMPUDI

RAJAHMUNDRY.

 The importance of the “Sales Promotion” in the marketing discipline and

secondly understanding the importance of “Promotional activities of SRI

VISWARUPA AUTOMOTIVIES PVT.LTD that is to study following

Promotional activities
 NEED FOR THE STUDY

 Marketing occupies an important position in the organization of a business

unit.

 It is one of the important line activities of business operations.

 The changes that are taking place in the economy reflect every other field.

 The job of business is to produce goods and service to the customers.

 In any economy characterized by scarcity of men, material and money

 The job of business has become more complex.

 More over with the increase in the competition increase in the needs and

desires of consumer and widening of markets. The businessmen are placed in

more difficult position in producing and selling high goods.

 The performance of other activities felt necessary for the success and

survival of the business organization.

 It is in this context the activities of Sales Promotion came into existence.

 SCOPE OF THE STUDY

 This study gives information regarding the history of Cars and particularly

the market history of Sri Viswarupa Automotives Pvt.Ltd

 The study gives an analysis on the marketing performance of Sri Viswarupa

Automotives Pvt.Ltd.

 The study concentrates on analyzing the satisfaction levels of the customers

in Rajahmundry.

 This project work done is strictly confined to the Sri Viswarupa Automotives

Pvt. Ltd,

 The project work is been carried strictly within the stipulated period i.e.,

during the months of MAY TO JUNE 2016.

 The data is strictly collected from the marketing department of the

Organization. The data collected is not published in any other magazine and

journals

 The marketing criteria of the company among the dealers are taken into

consideration.

 The local conditions or preference and their level of applications are shown.

 A study about the relationship maintained by the company with customers

the scope of this project covers all the major areas in East Godavari District.
 METHODOLOGY OF THE STUDY

When once the problem is identified it must be determined how to obtain the

necessary information to solve the problem:

a) Primary data

b) Secondary data

Primary data is the data that is collected for the first for a specific purpose

in this project the surveyor has adopted the technique of questionnaire to survey the

dealers in order to collect the primary data regarding the channels of distribution, as

the survey research is a systematic gathering of data from respondents through

questionnaires. This type of personal interview through questionnaire provides

critical type of information on knowledge intentions, demographic characteristics &

opinions-----etc. here the surveyor took as sample size.

The secondary data includes those data which are collected for some earlier

research work and are applicable in the study the researcher has presently under

taken.

The internal data procured by a researcher in normal operations within his

own premises includes, previous research reports.

The external data are collected from different sources available outside the

firm’s premises. They include various text books and websites. In this project the

surveyor mainly used the secondary data to gather information regarding the

product, price and various aspects regarding the company.

 LIMITATIONS OF THE STUDY

 The study has been conducted for only 8 weeks during which it may not be

possible to draw accurate conclusion.

 The study is mostly based on the secondary data, which may involve certain

amount of bias. The reasons drawn may not be accurate in certain cases.

 The production techniques, technology used in the factory were not taken

into consideration.

 The sample size of dealers is 80 and it may not be sufficient to draw

conclusions.
 INDUSTRY PROFILE

AUTOMOTIVE INDUSTRY ANALYSIS

An Automobile, Auto Car, Motor Car or car is a wheeled motor vehicle

used for transporting passengers, which also carries its own engine or motor. Most

definitions of the term specify that automobiles are designed to run primarily on

roads, to have seating for one to eight people, to typically have four wheels, and to

be constructed principally for the transport of people rather than goods. The term

motorcar has also been used in the context of electrified rail systems to denote a car

which functions as a small locomotive but also provides space for passengers and

baggage.

These locomotive cars were often used on suburban routes by both

interurban and intercity railroad systems. It was estimated in 2010 that the number

of automobiles had risen to over 1 billion vehicles, with 500 million reached in

1986. The numbers are increasing rapidly, especially in China and India.

HISTORY:

The first working steam-powered vehicle was likely to have been designed

by Ferdinand Verbiest, a Flemish member of a Jesuit mission in China around 1672.

It was a 65 cm-long scale-model toy for the Chinese Emperor that was unable to

carry a driver or a passenger. It is not known if Verbiest's model was ever built.

Nicolas-Joseph Cugnot is widely credited with building the first self-

propelled mechanical vehicle or automobile in about 1769; he created a steam-

powered tricycle. He also constructed two steam tractors for the French Army, one

of which is preserved in the French National Conservatory of Arts and Crafts. His

inventions were however handicapped by problems with water supply and

maintaining steam pressure. In 1801, Richard Trevithick built and demonstrated his

Puffing Devil road locomotive, believed by many to be the first demonstration of a

steam-powered road vehicle. It was unable to maintain sufficient steam pressure for

long periods, and was of little practical use.

In 1807 Nicéphore Niépce and his brother Claude probably created the

world's first internal combustion engine which they called a Pyréolophore, but they

chose to install it in a boat on the river Saone in France. Coincidentally, in 1807 the

Swiss inventor François Isaac de Rivaz designed his own 'de Rivaz internal

combustion engine' and used it to develop the world's first vehicle to be powered by

such an engine.

The Niépces' Pyréolophore was fuelled by a mixture of Lycopodium powder

(dried spores of the Lycopodium plant), finely crushed coal dust and resin that were

mixed with oil, whereas de Rivaz used a mixture of hydrogen and oxygen. Neither

design was very successful, as was the case with others, such as Samuel Brown,

Samuel Morey, and Etienne Lenoir with his hippomobile, who each produced

vehicles (usually adapted carriages or carts) powered by clumsy internal combustion

engines.
 In November 1881, French inventor Gustave Trouvé demonstrated a working

three-wheeled automobile powered by electricity at the International Exposition of

Electricity, Paris. Although several other German engineers (including Gottlieb

Daimler, Wilhelm Maybach, and Siegfried Marcus) were working on the problem at

about the same time, Karl Benz generally is acknowledged as the inventor of the

modern automobile.

An automobile powered by his own four-stroke cycle gasoline engine was

built in Mannheim, Germany by Karl Benz in 1885, and granted a patent in January

of the following year under the auspices of his major company, Benz & Cie., which

was founded in 1883. It was an integral design, without the adaptation of other

existing components, and included several new technological elements to create a

new concept. He began to sell his production vehicles in 1888.

A photograph of the original Benz Patent-Motorwagen first built in 1885 and

awarded the patent for the concept. In 1879, Benz was granted a patent for his first
engine, which had been designed in 1878. Many of his other inventions made the

use of the internal combustion engine feasible for powering a vehicle.

His first Motorwagen was built in 1885, and he was awarded the patent for

its invention as of his application on January 29, 1886. Benz began promotion of the

vehicle on July 3, 1886, and about 25 Benz vehicles were sold between 1888 and

1893, when his first four-wheeler was introduced along with a model intended for

affordability. They also were powered with four-stroke engines of his own design.

Emile Roger of France, already producing Benz engines under license, now added

the Benz automobile to his line of products. Because France was more open to the

early automobiles, initially more were built and sold in France through Roger than

Benz sold in Germany.

In August 1888 Bertha Benz, the wife of Karl Benz, undertook the first road

trip by car, to prove the road-worthiness of her husband's invention. In 1896, Benz

designed and patented the first internal-combustion flat engine, called boxermotor.

During the last years of the nineteenth century, Benz was the largest automobile

company in the world with 572 units produced in 1899 and, because of its size, Benz

& Cie., became a joint-stock company. The first motor car in central Europe and one

of the first factory-made cars in world, was produced by Czech company

Nesselsdorfer Wagenbau (later renamed to Tatra) in 1897, the Präsident automobile.

Daimler and May Bach founded Daimler Motoren Gesellschaft (DMG) in

Cannstatt in 1890, and sold their first automobile in 1892 under the brand name,

Daimler. It was a horse-drawn stagecoach built by another manufacturer that they

retrofitted with an engine of their design. By 1895 about 30 vehicles had been built

by Daimler and Maybach, either at the Daimler works or in the Hotel Hermann,
where they set up shop after disputes with their backers. Benz, Maybach and the

Daimler team seem to have been unaware of each others' early work. They never

worked together; by the time of the merger of the two companies, Daimler and

Maybach were no longer part of DMG.

Daimler died in 1900 and later that year, Maybach designed an engine

named Daimler-Mercedes that was placed in a specially ordered model built to

specifications set by Emil Jellinek. This was a production of a small number of

vehicles for Jellinek to race and market in his country. Two years later, in 1902, a

new model DMG automobile was produced and the model was named Mercedes

after the Maybach engine which generated 35 hp. Maybach quit DMG shortly

thereafter and opened a business of his own. Rights to the Daimler brand name were

sold to other manufacturers.

Karl Benz proposed co-operation between DMG and Benz & Cie. when

economic conditions began to deteriorate in Germany following the First World

War, but the directors of DMG refused to consider it initially. Negotiations between

the two companies resumed several years later when these conditions worsened and,

in 1924 they signed an Agreement of Mutual Interest, valid until the year 2000. Both

enterprises standardized design, production, purchasing, and sales and they

advertised or marketed their automobile models jointly, although keeping their

respective brands.

On June 28, 1926, Benz & Cie. and DMG finally merged as the Daimler-

Benz company, baptizing all of its automobiles Mercedes Benz, as a brand honoring

the most important model of the DMG automobiles, the Maybach design later

referred to as the 1902 Mercedes-35 hp, along with the Benz name. Karl Benz
remained a member of the board of directors of Daimler-Benz until his death in

1929, and at times, his two sons participated in the management of the company as

well.

In 1890, Émile Levassor and Armand Peugeot of France began producing

vehicles with Daimler engines, and so laid the foundation of the automobile industry

in France. The first design for an American automobile with a gasoline internal

combustion engine was made in 1877 by George Selden of Rochester, New York.

Selden applied for a patent for an automobile in 1879, but the patent application

expired because the vehicle was never built. After a delay of sixteen years and a

series of attachments to his application, on November 5, 1895, Selden was granted a

United States patent (U.S. Patent 549,160) for a two-stroke automobile engine,

which hindered, more than encouraged, development of automobiles in the United

States. His patent was challenged by Henry Ford and others, and overturned in 1911.

In 1893, the first running, gasoline-powered American car was built and

road-tested by the Duryea brothers of Springfield, Massachusetts. The first public

run of the Duryea Motor Wagon took place on September 21, 1893, on Taylor Street

in Metro Center Springfield. To construct the Duryea Motor Wagon, the brothers

had purchased a used horse-drawn buggy for $70 and then installed a 4 HP, single

cylinder gasoline engine. The car had a friction transmission, spray carburetor, and

low tension ignition. It was road-tested again on November 10, when the The

Springfield Republican newspaper made the announcement. This particular car was

put into storage in 1894 and stayed there until 1920 when it was rescued by Inglis

M. Uppercu and presented to the United States National Museum.

 In Britain, there had been several attempts to build steam cars with varying

degrees of success, with Thomas Rickett even attempting a production run in 1860.

Santler from Malvern is recognized by the Veteran Car Club of Great Britain as

having made the first petrol-powered car in the country in 1894 followed by

Frederick William Lanchester in 1895, but these were both one-offs. The first

production vehicles in Great Britain came from the Daimler Motor Company, a

company founded by Harry J. Lawson in 1896, after purchasing the right to use the

name of the engines. Lawson's company made its first automobiles in 1897, and they

bore the name Daimler.

In 1892, German engineer Rudolf Diesel was granted a patent for a "New

Rational Combustion Engine". In 1897, he built the first Diesel Engine. Steam-,

electric-, and gasoline-powered vehicles competed for decades, with gasoline

internal combustion engines achieving dominance in the 1910s. Although various

pistonless rotary engine designs have attempted to compete with the conventional

piston and crankshaft design, only Mazda's version of the Wankel engine has had

more than very limited success.

GRAPHICAL REPRESENTATION FOR INDUSTRY PROFILE

INDUSTRY GROWTH:

FUTURE OF AUTOMOBILE IN THE ECONOMY:

EMERGING TRENDS OF MOTOR INDUSTRY:

India is an emerging country with huge potential. The domestic economy is

now growing at around 9-10% per annum and India’s importance in global

terms is being reinforced by rapidly rising exports and domestic consumption. At

a time when numbers of a slowdown and overheating in the Indian economy have

started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP

figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at

the center of India’s new global dynamic.

The domestic market expanding rapidly as incomes rise and consumer credit

becomes more widely available. Manufacturer’s product lines are being

continually expanded, as is the local automotive manufacturing base.

Expectation are high that India can develop as a global hub for vehicle
manufacturers and as an outsourcing center that offers the global automotive

industry solution high up the automotive value chain

 India eyes 25 million automotive jobs.

 India's GDP is set to double over the next decade

 In percentage terms, the automotive industry's contribution should also

double

 In dollar terms, the sector's contribution is set to quadruple to some $145bn

Portrait of Henry Ford (ca. 1919)

Ford's complex safety procedures—especially assigning each worker to a

specific location instead of allowing them to roam about—dramatically reduced the

rate of injury. The combination of high wages and high efficiency is called

"Fordism," and was copied by most major industries. The efficiency gains from the

assembly line also coincided with the economic rise of the United States. The

assembly line forced workers to work at a certain pace with very repetitive motions

which led to more output per worker while other countries were using less

productive methods.
 In the automotive industry, its success was dominating, and quickly spread

worldwide seeing the founding of Ford France and Ford Britain in 1911, Ford

Denmark 1923, Ford Germany 1925; in 1921, Citroen was the first native European

manufacturer to adopt the production method. Soon, companies had to have

assembly lines, or risk going broke; by 1930, 250 companies which did not, had

disappeared.

Development of automotive technology was rapid, due in part to the

hundreds of small manufacturers competing to gain the world's attention. Key

developments included electric ignition and the electric self-starter (both by Charles

Kettering, for the Cadillac Motor Company in 1910–1911), independent suspension,

and four-wheel brakes.

Ford Model T, 1927, regarded as the first affordable American automobile

Since the 1920s, nearly all cars have been mass-produced to meet market

needs, so marketing plans often have heavily influenced automobile design. It was

Alfred P. Sloan who established the idea of different makes of cars produced by one

company, so buyers could "move up" as their fortunes improved.

Reflecting the rapid pace of change, makes shared parts with one another so

larger production volume resulted in lower costs for each price range. For example,
in the 1930s, LaSalles, sold by Cadillac, used cheaper mechanical parts made by

Oldsmobile; in the 1950s, Chevrolet shared hood, doors, roof, and windows with

Pontiac; by the 1990s, corporate power trains and shared platforms (with

interchangeable brakes, suspension, and other parts) were common.

Even so, only major makers could afford high costs, and even companies

with decades of production, such as Apperson, Cole, Dorris, Haynes, or Premier,

could not manage: of some two hundred American car makers in existence in 1920,

only 43 survived in 1930, and with the Great Depression, by 1940, only 17 of those

were left.

In Europe much the same would happen. Morris set up its production line at

Cowley in 1924, and soon outsold Ford, while beginning in 1923 to follow Ford's

practise of vertical integration, buying Hotchkiss (engines), Wrigley (gearboxes),

and Osberton (radiators), for instance, as well as competitors, such as Wolseley: in

1925, Morris had 41% of total British car production.

Most British small-car assemblers, from Abbey to Xtra had gone under.

Citroen did the same in France, coming to cars in 1919; between them and other

cheap cars in reply such as Renault's 10CV and Peugeot's 5CV, they produced

550,000 cars in 1925, and Mors, Hurtu, and others could not compete. Germany's

first mass-manufactured car, the Opel 4PS Laubfrosch (Tree Frog), came off the line

at Russelsheim in 1924, soon making Opel the top car builder in Germany, with

37.5% of the market.

The Indian Four-Wheeler Industry

ICRA Sectoral Review 2006

 The 4W industry in India has not quite matched up to the performance of its

counterparts in other parts of the world. The primary reason for this has been the all-

pervasive regulatory atmosphere prevailing till the opening up of the industry in the

mid-1990s. The various layers of legislative Acts sheltered the industry from

external competition for a long time. Moreover, the industry was considered low-

priority as cars were thought of as "unaffordable luxury".

Initially in the post-liberalization period, the automotive sector, especially

the passenger car segment, saw a boom. The buoyancy in the sector was derived

primarily from economic vibrancy, changes in Government policies, increase in

purchasing power (especially of the upper middle class), improvement in life styles,

and availability of car finance. The passenger car industry was finally deregulated in

1993, and many companies, both Indian and foreign (like Daewoo, Ford, General

Motors, and DaimlerChrysler), entered the market.

However, the smooth sailing was suddenly disrupted in the last quarter of

FY1996. The automobile industry, which contributed substantially to industrial

growth in FY1996, failed to maintain the same momentum between FY1997 and

FY1999. The overall slowdown in the economy and the resultant slowdown in

industrial production, political uncertainty and inadequate infrastructure

development were some of the factors responsible for the slowdown experienced by

the automobile industry. In FY2000, the sector experienced a turnaround, posted

positive growth rates and witnessed the launch of many new models. But the

spectacular growth in FY2000 was followed by a decline in FY2001 and only a

marginal growth of 0.5% in FY2002.

 However, since FY2003, industry sales have increased at a 3-year CAGR of

17.4% to 1.14 million in FY2006. Although there was a slowdown in FY2006, after

the high growth in FY2004-05, the recent high growth has been on the strength of an

increase in the disposable income of middle-income salaried people, release of pent-

up demand, and easy availability of credit.

Low Penetration, but Rising Share of World Production

Although the Indian automobile industry has come a long way since the

deregulation in 1993, India does not rank well among its global peers in many

respects, viz., the contribution of the sector to industrial output, number of cars per

person, employment by the sector as a percentage of industrial employment, number

of months' income required to purchase a car, and penetration of cars.

However, the major car manufacturers worldwide consider India a good

potential market and they foresee a large future demand here. As can be seen from

the table below, India is now a major global producer of cars, with India's share in

world production increasing from 1.6% in 2000 to 2.7% in 2005.

 Two things that stunted growth of the Indian automobile industry in the past

have been low demand and lack of vision on the part of the original equipment

manufacturers (OEMs). However, the demand has picked up after the liberalization

of the regulatory environment, and global OEMs who enjoy scale economies both in

terms of manufacturing and research and development (R&D) entered the Indian

market. This has resulted in a significant shift in the way business is conducted by

suppliers, assemblers and marketers.

Spending on Vehicles and Transport

India's private final consumption expenditure (PFCE) on transport was

estimated at around Rs. 3,124 billion in FY2005, accounting for around 16.5% of

total PFCE. This comprises three categories: personal transport equipment,

operation of personal transport equipment, and purchase of transport services.

In terms of PFCE, the share of transport in total PFCE has witnessed rapid growth

since the mid-1980s. By comparison, the share remained at around 3-5% till the

mid-1980s. The motor vehicles sector is also an important source of central excise

duties. Central excise duty collections from motor vehicles were Rs. 54.70 billion

during FY2005, accounting for 6% of central excise duty collections.

Taxes on vehicles, passengers and goods also form an important component of

states' tax collections, and formed 8.7% of states' own tax collections during

FY2005.

Demand Characteristics

Passenger Cars

In developed markets, engine capacity and wheel-base are the bases of

segmentation of passenger cars: price does play a role but only up to a point. Since

affordability is the most important demand driver in India, the domestic car market

has until now been segmented on the basis of vehicle price. Price-based competition

takes place in a continuum rather than in segments since nearly all the models are

launched in multiple versions at different price points. As a result, a higher-end

variant may compete with a lower-end variant of a car in a segment above it.
MUVs: The MUV segment consists of vehicles that are suited to both rural and

urban areas. In rural areas where the roads are usually bad, these vehicles are used as

goods carriers and also for public transportation. Northern and Western India

account for nearly two-thirds of the demand for MUV. Specifically, in States like

Rajasthan, Madhya Pradesh, Uttar Pradesh and Maharashtra, the demand for MUVs

is the largest.

There are three segments of buyers for MUVs: the private market,

Government, and the Defense. Until the 1990s, the Government and Defense

segments accounted for the largest share of the market. The reduction in

Government and defense spending since the 1990s has substantially reduced sales to

these two segments. This has pushed private sector purchases into greater

prominence.

There are three sub-segments of the UV / MUV segment: the hard-top, soft-

top and pick-up. The hard-top version consists of the higher-end Sports Utility

Vehicles (SUVs) that have been present in the Indian markets since FY1999.

Following the success of the higher-end SUVs, the share of the hard top segment in

total MUV sales has registered an increase. Soft-top MUVs, which are largely

dependent on sales in the rural and semi-urban markets where the vehicles serve as

modes of mass transportation (maxi taxi); have witnessed a contraction in volumes

in recent years.

The declining share of the soft-top sub-segment is attributable largely to the

increasing acceptance of SUVs as an alternative to soft-tops (and even higher end-

cars). Those apart, soft-top sales have also been affected by a decline in rural
income, increase in sales tax in some states, increase in diesel prices, enforcement of

strict emission control norms, and restraints on the issue of licenses to use soft-top

vehicles as rural taxis.

Demand Structure

When the industry was deregulated in 1993, the global carmakers chose to

operate in the high price-high value segment. However, the strategy did not work as

the market for premium and luxury vehicles in India was not large enough. MUL

was entrenched in the low price-low value segment, and given its scale economies, it

could not be dislodged. In the latter half of the 1990s, foreign car manufacturers

changed their strategy. It was still difficult to remove MUL from its market

leadership in the dominant low price-low value segment as scale economies formed

the basis of competition in this segment.

Thus, the global players changed the price-value equation by offering

superior value at a price that was still higher than that of the Maruti 800 and Omni,

but significantly lower than of the cars in the high price-high value segment. The

process gained momentum in FY2000 when the growth in the car market was led by

the Compact segment. Although the compact segment now accounts for 65% of

domestic sales of passenger cars, in recent years, the mid-size segment has captured

a rising share of the market, and since 2004, sales in the mid-size segment have

exceeded sales in the mini-segment.

Low Penetration Levels

Although India's 4W sales have increased in recent years, penetration levels

are low at around 0.9%. Till the last decade, the industry was considered low

priority as cars were thought of as 'unaffordable luxury', and treated as such through
Government policies. Although reduction in excise duties, favorable Government

policies, and lower prices have resulted in significant increase in penetration, India's

passenger car penetration is low by global standards-1.3% in Chino, 59% in EU, and

81% in the US.

Estimates from Notional Sample Survey 58th Round (2002) indicates that

ownership of four-wheelers (car or jeep) is restricted to about 4.4% of urban

households, and 0.6% of rural households. During 2002-03, ownership of cars/jeeps

was restricted to around 0.9 million households in rural areas, and 2.57 million

households in urban areas.

 COMPANY PROFILE

INTRODUCTION OF RENAULT:

Introduction:

Traditionally one of the big 6 car makers in Europe, Renault is expanding its

business in recent years through its subsidiary Dacia and Samsung. Even more

benefits are gained by the alliance with Nissan - or actually the ownership of Nissan

- thanks to sharing power trains, platforms and manufacturing plants. They formed

the world's 5th largest car group. Renault and Nissan complements each other in

different markets, for example, Renault is strong in Europe and Latin America but it

has no presence in North America and Japan, while Nissan is well established in

Japan and NA and weaker in Europe and South America. This is really a marriage

made in heaven.

HISTORY:

The story of Renault is first and foremost the story of a man with an unusual

destiny. The adventure began on December 24, 1898, when Louis Renault took up a

challenge to drive his A-type Voiturette up the steep Rue Lepic in Montmartre,

Paris. The exploit won him his first 12 orders. The company continued to grow as

Renault began winning road races: Paris-Berlin, Paris-Vienna...

Louis Renault gambles and wins:

A leader's childhood:

Louis Renault was born into a typically bourgeois Parisian family in

February 1877. The youngest of five children, he had two sisters and two brothers.

His father, Alfred, a conscientious businessman, had built up a comfortable fortune

through the sale of fabrics and buttons. His mother, Louise, the daughter of well-to-

do shopkeepers, enjoyed entertaining and the arts.

Louis was a pampered child. At an early age he developed an enthusiasm for

all things mechanical, including engines and electricity — everything that surfaced

during that era was overflowing with technical progress. The Renault family had a

second home in Billancourt, very near to Paris, and it was in a garden shed there that

the young Louis set up his first workshop. Studies were not his strong point and he

was more than content to pass his baccalaureate. But the quiet teenager had two vital

assets for getting on in life: he was both intuitive and practical.

New vehicle moves into gear:

At the age of 20, he made a brilliant entrance into the emerging world of the

motor car. He converted his De Dion-Bouton tricycle into a small, four-wheeled

vehicle and added another of his inventions that would soon propel the motor car

into a new era: the 'direct drive', the first gearbox. It instantly dethroned the

transmission chains and cogs that had been used until then.

On December 24, 1898 Louis was spending Christmas Eve with some

friends. Confident about his invention, he bet them that his vehicle could climb the

13% slope of the Rue Lepic in Montmartre. Although they were incredulous at first,

his friends were soon forced to believe their eyes. Not only did Louis win his bet -
he also pocketed his first 12 firm orders, along with cash deposits. His career was

under way. A few months later he filed the patent for the direct drive system that

would make his fortune. It was soon adopted by all the manufacturers of the time.

A string of firsts

His two brothers, Marcel and Fernand, who ran the family business

prudently, set up the Renault Brothers company in 1899 - with a small amount of

capital and without including their talented sibling. They left Louis the ownership of

his patent and paid him a good salary on condition that he shows results. In fact,

Marcel and Fernand were dubious that the sideline had much future... But Louis was

very soon to prove them wrong.

It was through racing that Renault Brothers became known, with Louis and

Marcel at the wheels of their vehicles. Starting with the Paris-Trouville event in

1899, they chalked up win after win in most of the city-to-city races, including

Paris-Bordeaux, Paris-Ostend, Paris-Berlin and, most important, a magnificent

Paris-Vienna won by Marcel in 1902.

Rapid growth:

Those victories were the most effective form of advertising and direct

marketing that the brothers could have wished for. An admiring public made their

order books fatter with every race. The cars were sold for 3,000 francs - the

equivalent of ten year's average salary at the time. The company expanded rapidly

and the workshops by the Seine were forced to expand with it. By 1902 they covered

7,500 square metres. The Renault catalogue included several models, including the

first saloon car on the market. In the same year Louis introduced the first Renault
engine, with four cylinders and horse-power of 24. Soon after he patented the first

turbo.

The Americans' lead:

In 1919 Louis Renault assessed the gap that separated European automobile

manufacturers from their American rivals. The United States, which was not

involved in the war, had already entered the consumer era. Thanks mainly to Ford,

which was mass-producing inexpensive vehicles, more people could afford cars, and

making them had become a major industry with repercussions on the national

economy. In France, the motor car was still regarded as a luxury and was heavily

taxed, which was holding back its progress. The golden age of the French

automobile was a thing of the past.

The weapon: 'A large-scale organization'

After the first recession that rocked the world economy in 1920-1921, Louis

Renault reorganized his business. He set up the Société Anonyme des Usines

Renault (SAUR), sold a stake in the company to a bank and worked out his view of

'a large-scale organization' that would be strong and independent, a sort of autarkical

stronghold that could face up to the competition and stay afloat when the economy

was going through a depression.

Like Ford, which had gone as far as buying its own railroad, the SAUR

became an 'all-in-one' firm with an extraordinarily varied range of production units

and sites. This is known as 'vertical concentration' - the exact opposite of Renault

today, which focuses on its core business of making cars and buys in about 80% of

the components.
Renault was everywhere

Peace, with lost time to be made up for and needs to be satisfied in many

areas, gave Louis Renault a tremendous boost of creativity. He manufactured

everything that had an engine: cars, light commercial vehicles, vans, buses and

trucks, farm tractors (whose caterpillar tracks were inherited from wartime tanks),

ships' engines, motor units, railcars and, of course, aeroplane engines.

To supply the workshops, he acquired his own foundries, ironworks,

sandpits, and forests and sawmills, enabling him to make everything that would

reduce his dependency on other companies: steel, cardboard, electrical equipment,

industrial rubber, oil and lubricants. He did buy in components when they were

cheaper than those he could make himself, and of the required quality.

Billancourt comes back to life with the 4CV

A Chairman with an iron fist:

On January 16, 1945, an ordinance established that the Société Anonyme des

Usines Renault was to be nationalized, becoming the Régie Nationale des Usines

Renault (RNUR). The French government appointed Pierre Lefaucheux as the

company's first Chairman. Engineer and graduate of the prestigious Ecole Centrale,

active in the Resistance and with a strong industrial background, this energetic,

enthusiastic leader of men quickly settled into this prominent role.

He won a first major victory for the future of the company when the new

state authorities having decided that Billancourt would concentrate solely on the

production of trucks, he managed to gain authorization to manufacture passenger

cars as well. Despite a difficult time getting the plant back into working order, the

4CV project was launched.

The 4CV:

Outlined while France was in the throes of war, and finalized during the

post-war rationing period, this little 'everyman's vehicle', designed by the engineer

Ferdinand Picard, was sturdy, discreet and inexpensive. Pierre Lefaucheux was

convinced that small cars were the best way to revive the country's automobile

industry. Other manufacturers, such as Citroën, Fiat, Morris and, of course

Volkswagen, also took this direction, launching their own small cars.

The 4CV (760 cm3) was unveiled at the first Paris Motor Show in 1946 and

its mass production, which began the following year, continued up through 1961.

The car's huge success far surpassed all expectations. Exported from 1947 onwards,

the 4CV was the leading source of foreign income.

Transfer machines:

During this time, the company was equipped with transfer machines, high-

performance work tools for engine block machining. They were designed by Pierre

Bézier, a Renault engineer who, while a prisoner of war in Germany, improved upon

the automatic machine principle introduced before the war by GM (General Motors).

With their multiple workstations and electromagnetic heads, these mechanical

monsters, precursors of robots, made it possible to perform a variety of different

operations consecutively on a single part by transferring it from one station to

another. The RNUR sold a number of these machines to competitors in France, the

USSR and even the US. Bézier was later responsible for designing the famous

curves used around the world for CAD (computer-aided design).

Brief History:

Like Henry Ford, the young Louis Renault was a self-taught engineer

fascinated with the idea of motor cars. He built his first car in 1898 and founded his

company with the financial support from his elder brothers, Fernand and Marcel. 6

cars were made that year. This rose to 179 cars in 1900 and then nearly 1500 cars a

further 5 years later, thanks to a contract for supplying Paris taxis.

Having visited Henry Ford in America and saw the expansion of arch-rival

Citroen, Louis Renault followed suit to apply mass production lines to his factory in

1922. As a result, production surged to 25,000 cars in 1924. Renault became one of

the major car makers in the world. Unlike Citroen, Renault built a wide range of

vehicles, from small cars to luxury cars, also vans, trucks, buses and even tanks.

During both World Wars, like many other car makers, it was transformed to

produce military vehicles and aero engines. In the WW II, it was occupied by

German forces (so was the whole France) and worked for the German army. As a

result, after the war Louis Renault was found guilty and was sentenced. Just 20 days

later, he died in prison.

Renault 4CV (1947-61)

Therefore the company was nationalized. The government-appointed new

boss continued expanding the factory and introducing new cars, also eliminated the

wide-range policy in pre-war era. The sole mass production model became 4CV,

which was a rear-engine small car. It was immediately successful in the market

place, with 1.1 million units sold between 1947 and 1961, earning crucial foreign

currency for France.

The 4CV was succeeded by Renault 4, a front-drive roomy small car. It was

seen as a more up market alternative to Citroen 2CV, but it was proved even more

popular - 8.1 million units were built from 1961 to 1993, making it the most popular

French car in history. Another successful model, Renault 5, was launched in 1972 as

its first supermini.

Details of Renault Company:

Country France

Brands

Renault, Nissan, Dacia, Samsung, Lada, Alpine

Subsidiaries

Nissan (Japan) - 44.3% (Nissan owns 15% non-voting shares of Renault)

Dacia (Romania) - 99.4%

Renault Samsung (S. Korea) - 80.1%

Avtovaz (Russia) - 25%

AB Volvo (Truck) (Sweden) - 21.8%

Location:

Headquarters: Boulogne- Billancourt, Paris.

Technical Center: Guyancourt

Main plants:

France: Douai (Scenic), Flins (Clio), Maubeuge (Kangoo), Sandouville

(Laguna, Vel Satis, Espace), Dieppe (Renault Sport).

Spain: Palencia (Megane), Valladolid (Clio, Modus)

Slovenia: Novo Mesto (Clio, Twingo)

Romania: Pitesti (Dacia Logan, Sandero)

Turkey: Bursa (Clio, Megane)

Russia: Moscow (Avtovaz) (Logan)

South Korea: Busan (Samsung SM3, SM5, SM7, Koleos)

Brazil: Curitiba (Logan, Megane, Scenic, Sandero)

Argentina: Cordoba (Clio, Kangoo)

Sales figures --------- 2011 sales:

Renault-Nissan Alliance: 8,029,222 units

Renault Group: 2,722,062 units (Renault + Dacia + Samsung)

Nissan Group: 4,670,000 units (Nissan + Infiniti)

Lada brand (AvtoVAZ): 638,000 units

2010 sales:

Renault-Nissan Alliance: 7,276,398 units

Renault Group: 2,625,796 units (Renault + Dacia + Samsung)

Nissan Group: 4,080,588 units (Nissan + Infiniti)

Renault brand: Units

Dacia brand: units

Samsung brand: 155,697 units

Lada brand (AvtoVAZ): 570,014 units

Renault-Nissan Alliance sales:

2009: 6,085,058 units

2008: 6,090,304 units

2007: 6,160,046 units

2006: 5,911,171 units

2005: 6,131,000 units

Renault brand sales:

2009: 1,861,389 units

2008: 2,019,274 units

2007: 2,134,484 units

2006: 2,115,176 units

2005: 2,249,995 units

2009 production by models:

Twingo: 182,353 units

Clio: 379,086 units

Logan: 289,477 units

Sandero: 224,454 units

Modus: 71,702 units

Kangoo: 168,788 units

Megane (incl. Scenic): 463,428 units

Koleos: 34,220 units

Laguna: 56,460 units

Espace: 16,083 units

Vel Satis: 1,196 units

KEY FIGURES

Renault Atlas (May 2012)

 Three brands: Renault, Dacia and Renault Samsung Motors

 Renault is now present in 118 countries

 Group sales worldwide: 2, 7 million vehicles (year 2011)

 A commercial network made of 18,000 sites

 43% of the group sales are made outside Western Europe (2010)

 The 5 biggest markets of the group are: France, Brazil, Germany, Russia and

Turkey

 Revenues for the year 2011: €42,628 million (car sales and financing)

 A workforce of 128,322 employees (as of December 31, 2011)

 100% of Renault industrial sites are ISO 14001 certified

 Renault: more than 10 years as the leading LCV

STRATEGY

On February 10, 2011 Carlos Ghosn, Chairman and CEO of Renault, introduced the

Group's new strategic plan. Renault 2016 – Drive the Change is founded on

Renault’s ambition to make sustainable mobility accessible to all, expressed in the

brand tagline, "Drive the Change

A strategic plan covering a six-year period:

This strategic plan covers a six-year period with a mid-term review at the end of

2013. This will allow us to build a long-term strategic outlook to ensure continuity
in operations and to establish precise, quantified priorities for the three years to

come.

Renault 2016 – Drive the Change has been built to meet two objectives:

 Ensure the Group’s growth,

 Generate free cash flow on a lasting basis, with the following aims for the

2011-2013 periods: sales of over 3 million vehicles in 2013 and at least €2

billion in aggregate free cash flow.

The Renault group will work on seven key levers to meet these objectives:

 Pursue the innovation policy,

 Strengthen the product offer,

 Reinforce the image of the Renault brand,

 Ensure the excellence of the distribution network in customer relations,

 Control investment and R&D expenditure,

 Reduce costs,

 Maintain positions in Europe and pursue growth internationally.

Commenting, Carlos Ghosn, Chairman and Chief Executive Officer of

Renault, said: “The success of Renault 2016 - Drive the Change relays on the

mobilization and engagement of the men and women of Renault throughout the

world. They are the key to the company’s future. It is their commitment that will

contribute to building day after day the Renault of tomorrow.

More competitive Renault meeting stakeholders’ expectations. A strong

Renault with a powerful brand image and a benchmark level of quality and services

that will make all our employees proud. A Renault as established in its French roots
and as at ease all over the world, making mobility affordable for all everywhere. A

sustainable Renault in line with the energy and environmental challenges of the 21st

century.”

QUALITY:

Renault wants to be recognized by its customers and the public at large in all regions

and market segments as one of the world’s top automakers for the quality of its

products and services.

Quality and customer satisfaction are inscribed in the company’s genes:

In recent years, thanks to a stringent policy and ongoing quality

improvements, the Group’s brands have vied with those of the world’s top

carmakers in terms of reliability and service quality. In several European countries,

as well as in South Korea and Brazil, rankings by independent organizations and the

trade press have highlighted the advances made in terms of quality.

Renault makes certain that the vehicles and services its supplies to customers

deliver total satisfaction and create a peace-of mind relationship with the brand. That

effort is reflected in our strong commitments to consolidating recent years’ good

results, improving the durability and longevity of our vehicles, and offering

customers exemplary service across the entire sales network.

Today, the top priorities of our quality policy are to ensure customer

satisfaction and win public recognition for the group’s progress on quality. The new

advertising baseline “Renault Quality Made” was launched in 2011 as an ongoing

reminder that our core competencies are focused on the overarching need for quality

and customer satisfaction.

Renault Mégane: Renault’s quality flagship:

Mégane III is Renault’s top-selling model, with more than 700,000 vehicles

purchased worldwide since end of 2008. It ranks among the leaders in its segment

for reliability, according to an independent survey across a sample of French and

German motorists. Mégane III has placed among the leaders for two years running

in Automobile Magazine’s “Top 100 for Reliability” ranking, in which more than 80

models from 25.Brands were rated by quality and reliability based on customer

experience and press drives.

Mégane III is described as “business-like and robust. As with all Renault’s

recent products, New Mégane delivers top-notch reliability.” According to the

German auto club ADAC, which publishes the industry-standard report on vehicle

reliability (measuring VOR breakdowns for cars on the road between 1 and 6 years);

Megan’s reliability has been ranked “good” then “excellent” since 2006.

Furthermore, for both Mégane II and Mégane III, warranty-covered incidents in the

first year on the road have dropped by 40%.

Recognition by authoritative organizations and surveys:

In its latest report on vehicle reliability, ADAC-Pannenstatistik 2011, the

main German motoring organization stressed the progress made throughout our
range. All the models have ranked “good” or “excellent” for reliability since 2006.

In a service quality survey by the same organization, “ADAC- Werkstatt-Test

2001”, all Renault garages was ranked “very good”. The trade press has also

highlighted the progress made in the quality of our brands. In Automobile

Magazine’s “28 carefree models” survey published in France in January 2011, four

of the Group’s models placed first for quality and reliability.

Dacia, high-quality products… and services high:

In January 2012 the Dacia brand was ranked first in the “Reliability Hit

Parade” by the French magazine Autoplus. At European level, a survey on vehicle

reliability by five organizations across 30,000 consumers in France, Spain, Italy,

Belgium and Portugal singled out Dacia as the most reliable brand. Last July the

German magazine Autobild awarded Dacia the best results ever achieved by an

automotive brand in 25 years for after sales service.

Renault Samsung Motors: setting standards in South Korea:

In South Korea, Renault Samsung Motors was recognized for customer

satisfaction in 2011 - for the 10th year running. The independent 2011 Automotive

Syndicated Research Survey carried out by Marketing Insight compared several

South Korean car manufacturers and interviewed around 100,000 customers.

Renault Samsung Motors was ranked first on eight criteria, including initial quality,

product attractiveness, satisfaction with sale and after-sales satisfaction.

BRAND BASELINE:

Renault reveals its new brand baseline in Frankfurt: "Drive the change" (in french :

"Changeons de vie. Changeons l 'automobile.")

A GLOBAL PLAYER:

RENAULT IN INDIA:

With an annual growth rate of around 20% in recent years, the Indian car

market is one of the most buoyant in the world and is expected to become the fourth

biggest within three years. To win its share of the market, Renault has acquired

manufacturing facilities with the Renault-Nissan plant in Chennai, its own sales

network, a logistics centre, an engineering centre shared with the Alliance and a

design centre based in Mumbai

A strongly expanding economy:

India is the world’s 12th biggest economic power. Between 2005 and 2007 it

posted steady economic growth of over 9%, and GDP per capita has doubled in the

space of ten years. The car market is growing by around 10% a year, attracting the

attention of many vehicle manufacturers. India’s middle classes total more than 350

million people, all of whom are potential buyers and their numbers are continuing to

grow. Suzuki/Maruti is currently No. 1 on the small car market. Honda, GM

Chevrolet and Fiat/Tata are building their presence. Renault is moving into position.

After Fluence and Koleos, India welcomes Pulse:

Renault Pulse was specially designed for the Indian market:

On March 17, 2011, Renault Nissan Alliance Chairman and CEO Carlos

Ghosn inaugurated Chennai plant with the presence of representatives of state

government of Tamil Nadu. The first dedicated Alliance global plant has a

production capacity of up to 400,000 units per year. It operates in full compliance

with Alliance global manufacturing processes and quality standards.

Its production management system, launched for the first time at any plant of

Renault and Nissan, is based on mutual knowledge sharing and the best practices

from both companies. At the AutoExpo 2010 (in New Delhi), Renault announced its

will to introduce a full range in India in a 4 years’ timeframe. Most of these vehicles

will be produced in Chennai. Fluence and Koleos models have been launched in

2011.

In October 2011, Pulse, an upscale compact car, has been revealed and is

scheduled to go on sale in the beginning of 2012. The car was designed by Renault's

Design Center in Mumbai and will be produced in the Alliance's plant in Chennai,

which will also manufacture its engine (1.5 dCi, best-in-class for fuel efficiency).

Renault Pulse will constitute the core of Renault' product range in India.
Design & logistics:

Design center in Mumbai: impetus for creative projects:

Set up as an observational unit in India in 2005, Renault Design India has played a

key role in a number of high-profile projects, including the Logan Steppe concept

and R&D into luxury textiles reflecting India’s heritage. In 2008, the unit became a

fully fledged design center. It will design vehicles for the Indian and regional

markets. Renault Design India thus becomes the first vehicle design center to be set

up by a western manufacturer in India. An opportunity for Renault to reinforce its

international design network.

A logistics platform in Poona:

Renault opened a logistics site in Poona (Maharashtra) in 2008. This platform turns

out components for all Renault-Nissan Alliance production plants. The Poona site

contributes to Renault’s international development.

India in brief

 Capital: New Delhi

 Area: 3,165,596 km²

 Population: 1,148 million

  GDP: US$ 1,170,968 billion

 Roads: 3,319,644 km

Renault in India, key points (2009):

 A production capacity of 400,000 vehicles/year at Chennai

 The Chennai plant represents an investment of 45 billion Rupees ($990

million).

CONCEPTION: In line with its ambition to increase sales outside Europe, the

Group designs and develops its vehicles at a global level. Local development of

vehicles ensures they respond closely to market requirements while advance

planning of necessary modifications allows them to be marketed internationally.

International engineering, close to markets:

The Techno centre R&D center (France):

Renault's engineering resources are active around the world. The department has 2

divisions: Central Engineering, at the heart of the system, and Regional Engineering,

present across Renault’s strategic markets.

The engineering centers:

 The Techno centre (France), global engineering headquarters,

 Renault Technologies Americas (entities in Brazil, Argentina, Mexico, Chile

and Colombia),

 Renault Technologies Romania (entities in Romania, Turkey, Russia,

Slovenia and Morocco),

 Renault Technologies Spain (entities in Spain and Portugal),

  The Renault Samsung Technical Center in South Korea.

This organization is based on a standardization of Renault's engineering processes

around the world: coordination of technical standards, definition of key functions

and harmonization of technical policies.

A well-developed network of design centers:

Renault Design America Latina in Sao Paulo (Brazil)

The Group also relies on a parallel network of 4 “satellite” design centers that keep a

close eye on the latest technology and design trends and create vehicles for new

markets. They are involved from the launch of a new project through to the

production of the final concept car.

The design centers:

• Renault Design Central Europe (Bucharest, Romania)

• Renault Design America Latina (Sao Paulo, Brazil)

• Renault Samsung Desigh (South Korea)

• Renault Design India (Mumbai, India)

MANUFACTURING:

International industrial organization:

- 38 industrial sites in 17 countries ensure production occurs close to markets

- Standardization guarantees the same level of quality throughout the world

- International production capacities are expanding rapidly

Major projects of development

• Russia: a partnership signed with the AvtoVAZ automaker,

• Morocco: work began on a new industrial complex in Tangiers.

The Renault Production Way, driving international development

The RPW ensures Renault's capital equipment achieves an optimal level of

performance. It ranks among the most competitive and most flexible in the

automotive sector and is continuously improved through the application of Renault-

Nissan Alliance best practices.

The Renault Production Way:

 Guarantees the same quality standards throughout the world,

 Enhances Group performance (plant specialization according to car segment,

development of plant capacity to produce different vehicles on the same

production line, continuous improvement of the workstation, etc.),

 Ensures the Group's commitments to the environment (100% of Renault's

production sites are committed to ISO 14001 (environmental management

standard) certification processes),

 Reinforces safety throughout the world.

Logistics: a transversal, international activity

 The logistics division engineers, organizes and manages flows of goods and

information on a global scale:

  From pre-production (procurement of parts) to post-production (distribution

of vehicles),

 From customer order to vehicle delivery within the sales network.

 Sites:

 7 ILN (International Logistic Network) hubs in Argentina, Brazil, France,

India, Romania, Spain and Turkey receive store and dispatch parts to

manufacturing sites.

 4 Sofrastock International sites (Renault logistics subsidiary) manage and

distribute small automotive parts and Non Production Materials (NPM)

SALES IN 2011:

The Renault group is reporting record sales volumes for 2011, with 2,7 million

vehicles sold (+3.6% on 2010). This performance is driven by strong growth

outside Europe (+19.6%) and by the Renault brand (+6.8%). The Group's global

market share stands on 3.6%. The year 2012 will feature a major product offensive

both in Europe and on international markets with the arrival of ZOE, Twizy, Lodgy

and New Clio (among others).

GROUP BRANDS:

Renault Dacia Renault Samsung Motors

RENAULT:

Renault is the Group's historical, founding brand. Strongly present in Europe, the

Renault brand is in a worldwide expansion. Renault has always been a vector for

innovation, with the invention of the MPV (multi-purpose vehicle).

Renault in figures (2010 data)

 More than 100,000 employees worldwide

 2,115,600 vehicles sold, more than 80% of the group's total sales

 The leading automobile brand in France (23.9% of the market in volume), in

Portugal (12.3%) and in Slovenia (18%)

 The leading brand in Europe in the light commercial vehicle market for the

last 13 years

Attractive products

 Commercial launch of the Renault Latitude sedan, designed for the well-

being of its occupants

 An extended "driving pleasure" offer with Renault Wind, Renault Mégane

Coupé-Cabriolet and the Gordini vehicles.

  Renault Twingo remains the leader in the small city car segment in France

 The first mass produced electric vehicles, Renault Kangoo Express Z.E. and

Renault Fluence Z.E.

 The success of the third generation of the popular MPV Renault Scénic

Worldwide presence

Renault has commercial and industrial sites worldwide, in order to:

 Warranty the best customer satisfaction all around the world,

 Produce close to the markets.

The Techno centre engineering center

This research and development center in Guyancourt (France) works to drive

innovation and reduce design and development costs. The Techno centre works

closely with decentralized engineering centers, in different markets and in different

production sites. It drives projects with global reach. In addition, Renault can count

on a network of four "satellite" design centers, fully integrated into the group’s

global Design function processes: Seoul (South Korea), Bucharest (Romania)

A Renault engineering center in Romania:

The RTR (Renault Technologies Romania) was created in 2007.

This regional center handles development of vehicle and power train projects. Once

the development stage is complete, vehicles are manufactured in the region’s plants

and marketed in Central and Eastern Europe, Turkey, Russia and North Africa. RTR

has offices in Bucharest (design offices), Pitesti (engineering services at body

assembly and power train plants) and Titu (Test centre scheduled for startup in the

second half of 2009).

DACIA: Created in 1966 and bought by Renault in 1999, Dacia is the most

important auto maker in Romania. Its values are: simplicity, robustness and

unbeatable value for money. A large part of its success comes from the emblematic

vehicle: Logan. Dacia is also the group's vector for development in Europe and

Euromed regions.

RENAULT CORPORATE SALES:

Created in 1999 and present in 37 countries, the Renault Corporate Sales Division

has been helping businesses manage their vehicle fleets. It relies on Renault's

leadership amongst French professional customers and an international expertise,

ranking top three in Europe.

From small businesses to multinationals: The Renault Corporate Sales Division

delivers fleet management solutions to businesses that need to provide vehicles to

their personnel. The self-employed, small business and multinationals all call on

Renault to supply and manage their fleets and benefit from the brand’s financial and

maintenance services for their vehicles. Renault Corporate Sales is active on every

continent, working with more than 130 multinationals in every economic sector and

supporting them in their international growth.

Adapting vehicles to our customers’ specific needs: Certain vehicles can be

customized or converted to meet the specific needs of a particular profession or

company. The custom services proposed by Renault Corporate Sales range from the
creation of a special bodywork color, to the installation of an external power outlet

or the customization of the interior trim.

Services for professional vehicles: Renault Entreprises offers a range of solutions

to reduce the cost of purchasing and maintaining vehicles and to guarantee the

optimal use of the fleet:

Fleet management solutions and follow-up control services, financial services

(credit, long-term rental contracts, leasing contracts, etc.), advice on vehicle

taxation, mobility services (assistance, replacement vehicles, etc.), and service and

maintenance contracts.

A sales organization adapted to international customers:

Servicing vehicle fleets in several countries can be a complex and costly business.

. Renault can help multinationals to cut their costs by optimizing the management of

their fleets. Renault Corporate Sales guarantees optimal fleet management by

appointing a dedicated point of contact, which centralizes all their requests and

delivers customized solutions. This system allows for the deployment of

international fleet management strategies on a local level, while simplifying

exchanges between Renault and its customers

Worldwide coverage, local support:

Every day, Renault Corporate Sales can rely on a worldwide network, with some

11,000 dealerships in Europe alone. Each establishment has a sales force dedicated

to business customers, proposing maintenance contracts for their vehicles and taking

care of their every need. Renault Corporate Sales also operates the Renault Pro +
network of outlets dedicated to fleet vehicles. Customers can test drive the models

on offer from Renault Corporate Sales and have their vehicles repaired and

maintained in these sales and after-sales outlets dedicated to professional customers,

thanks to dedicated service, extended hours, quick services, etc.

RENAULT TECH: Renault TECH is a business unit set up in 2008 to design,

produce and sell vehicles converted to meet the special needs of users, such as

professionals and people with reduced mobility.

Customizing Renault vehicles:

Renault master Renault TECH examines all types of requests from fleet customers

and can even design customized vehicles to order, installing a fire extinguisher or an

external power socket or redesigning the vehicle’s interior to meet a special

requirement.

Transportation of people with reduced mobility:

Renault TECH customizes new and used Renault vehicles that are large enough to

accommodate wheelchairs. Many models are available to buy or rent, including

Kangoo, Logan, Master and Trafic. Renault TECH also produces driving aids

(steering-wheel mounted accelerators and brakes, multifunction remote control units

to operate indicators, lights and horn, pedal transfers, etc.) and vehicle access aids,

such as manual or electric swivel seats. Driving school vehicles: Renault TECH

equips Clio, Modus, Mégane and Scénic with dual control pedals and other controls

used by driving instructors. Business vehicles: Kangoo, Trafic and Master in

dumper, flatbed and large-volume versions can be customized for use by builders,
market gardeners and other professionals. Personalized fleets: vehicles are outfitted

with features such as decals, revolving lights, towing gear, etc

Workshops in Renault plants: Renault Kangoo is part of the lineup of customized

vehicles for the transportation of people with reduced mobility

Renault TECH is headquartered at Les Ulis near Paris and has vehicle

conversion workshops in eight Renault plants across Europe. Located directly

alongside Renault’s production lines, these automated shops perform powertrain and

bodywork operations. Once a vehicle has been converted, it is fed back into the

initial logistics flow. Renault TECH also has a workshop in the French town of

Heudebouville that converts vehicles for disabled users.

Renault quality standards: All conversions comply with the quality standards of

the Renault group. Warranties are identical to those on the standard model, namely

24 months for Renault vehicles and 36 months for Dacia vehicles. Renault TECH’s

manufacturing sites are ISO 9001 certified, meaning that a quality-driven approach

based on customer satisfaction and continuous improvement is applied throughout

the vehicle conversion process.

Renault TECH in figures (2010 data)

• Wholly owned by Renault

• € 50 million in revenues

• 250 employees

• 90,000 vehicles converted

 • Target: 100,000 vehicles converted by 2013

RENAULT CONSULTING:

Renault Consulting is a key player in operational efficiency for Renault, the

Alliance and its partners. It also works for more than 300 companies across a broad

range of sectors. The structure relies on the expertise of over 150 consultants and

has three offices, in Paris, London and Madrid.

Real-life consultancy established some 25 years ago, Renault Consulting

brings its customers operational advice across the value chain, based on the

international experience of the Renault-Nissan Alliance and targeting enhanced

performance, management and organization. Renault Consulting has an international

team able to work on all continents and adapt to all needs and activity sectors. The

structure transfers skills so as to make the customer company independent, thereby

capitalizing on the obtained gains and improvement process. For Renault

Consulting, the true value of consulting lies in implementation, with action focused

on quick and measurable results.

Main areas of expertise:

Renault Consulting can support companies in a wide range of fields:

 Vision, strategy and policy implementation

 Benchmarking

 Project management

 Process-based management

 Organizational consultancy
  New production systems

 Lean Sigma

 Lean Service

 Lean Development

And also in e-business, quality control, managerial skill development and

purchasing.

SERVICES: The purchase of a car has become inseparable from a wide range of

services, from financing and insurance, through warranty and maintenance. To make

sure that cars remain synonymous with freedom, Renault has developed an array of

services for its vehicles.

Finance: RCI Banque: The Renault group’s finance arm RCI Banque, a wholly-

owned Renault subsidiary, provides financing options and services to the customers

and networks of Renault, Nissan, Dacia, and Renault Samsung Motors. RCI Banque

is present in 39 countries.

Maintenance and repair:

Motrio: Multi-brand automobile repair

Motrio brings its customers maintenance and repair services, covering servicing,

lighting, oil changes, brakes, shock absorbers, filters, exhausts, engine timing, and

tires. Launched in France in October 2003, Motrio now has 1,100 sites, and is also

present in Spain, Portugal, Poland and Argentina.

Motrio is also a multi-brand range of spare parts and workshop products covering

80% of Europe’s vehicle population, or 32 brands and 4,000 models.

Renault Minute: For everyday vehicle maintenance:

Renault Minute proposes everyday servicing and repair solutions requiring short

workshop times and quick service without appointments. Nine services are

provided: servicing, oil changes, tires, brakes, exhausts, air conditioning, shock

absorbers, batteries and accessories.

Renault Minute has 1,200 sites in 22 countries.

Renault Minute Carrosserie: Quick and efficient body work:

Renault Minute Carrosserie proposes bodywork operations over short, 24-hour to

48-hour periods for glazing, locks, body parts (bumpers, wings, hoods and doors)

and rearview mirrors. Renault Minute Carrosserie has over 800 sites in 23 countries.

Renault Pro +: a « one stop shop » service for professionals

Renault Pro+ brings to professionals a global and tailor-made response to all their

needs when it comes to sales and afters sales. Watchwords are: proximity,

proactively and profitability. Client charters materialize this commitment in 12

sections. In 2009, 66 Renault Pro + sites were inaugurated in 14 countries. The aim

is to have a network of 400 centers before end-2012.

Car hire:

Renault Rent: Vehicle rental across France

Renault Rent offers short-term rental deals for passenger cars and light commercial

vehicles at extremely competitive prices. Customers can rent all Renault range

models from a network of 258 franchises.

MANAGEMENT:

To achieve its objectives and maintain the highest standards of corporate

governance, Renault pays close attention to the balance between its management, its

supervisory bodies and its shareholders.

Top-level governance:

The company is administered by a Board of Directors composed of 19 members (10

of them being independent).The Group Executive Committee (CEG) comprises 9

members, including the Chairman and CEO. It meets once a week and at

monthly seminars. The Renault Management Committee (CDR) comprises of 26

members, including the members of the Group Executive Committee. It meets once

a month and holds seminars twice a year.

Management driven by profit and focused on customers:

The Group’s performance is founded on a managerial organization adapted to rapid

international action and on the ability of its managers to define and follow through

on quantifiable, measurable, achievable objectives.

Management by region: 5 regional management committees (CMR) are

responsible and accountable for the contribution of their geographic region to the

Group’s profits.

Management by program: Program Directors are responsible and accountable for

the contribution of their vehicles to the Group’s profitability across all markets,

throughout the product lifecycle and including all related services.

11 transversal teams: are responsible for continuously challenging the performance

of each function and operation with reference to the best global practices
BOARD OF DIRECTORS:

 Carlos Ghosn, (Chairman and Chief Executive Officer)

 Yves Audvard

 Alain J.-P. Belda

 Patrick Biau

 Alain Champigneux

 Charles de Croisset

 Bernard Delpit

 Thierry Desmarest

 Jean-Pierre Garnier

 Takeshi Isayama

 Alexis Kohler

 Marc Ladreit de Lacharrière

 Dominique de La Garanderie

 Philippe Lagayette

 Benoît Ostertag

 Franck Riboud

 Luc Rousseau

 Hiroto Saikawa

 Pascale Sourisse
 THEORTICAL FRAME WORK

INTRODUCTION

In a time when customers are exposed daily to a nearly infinite amount of

promotional messages, many marketers are discovering that advertising alone is not

enough to move members of a target market to take action, such as getting them to

try a new product. Instead, marketers have learned that to meet their goals they

must use additional promotional methods in conjunction with advertising.

Other marketers have found that certain characteristics of their target market

(e.g., small but geographically dispersed) or characteristics of their product (e.g.,

highly complex) make advertising a less attractive option. For these marketers

better results may be obtained using other promotional approaches and may lead to

directing all their promotional spending to non-advertising promotions.

Finally, the high cost of advertising may drive many to seek alternative, lower

cost promotional techniques to meet their promotion goals.

Sales promotions are used widely in many industries and especially by

marketers selling to consumers. We will see that the objectives of sales promotion

are quite different than advertising and are specifically designed to encourage

customer response.

DEFINITION

An activity designed to boost the sales of a product or service. It may include

an advertising campaign, increased PR activity, a free-sample campaign, offering

free gifts or trading stamps, arranging demonstrations or exhibitions, setting up

competitions with attractive prizes, temporary price reductions, door-to-door calling,

telemarketing, and personal letters on other methods".

What is Sales Promotion?

Sales promotion describes promotional methods using special short-term

techniques to persuade members of a target market to respond or undertake certain

activity. As a reward, marketers offer something of value to those responding

generally in the form of lower cost of ownership for a purchased product (e.g., lower

purchase price, money back) or the inclusion of additional value-added material

(e.g., something more for the same price).

Sales promotions are often confused with advertising. For instance, a

television advertisement mentioning a contest awarding winners with a free trip to a

Caribbean island may give the contest the appearance of advertising. While the

delivery of the marketer’s message through television media is certainly labeled as

advertising, what is contained in the message, namely the contest, is considered a

sales promotion. The factors that distinguish between the two promotional

approaches are:

 Whether the promotion involves a short-term value proposition (e.g., the

contest is only offered for a limited period of time), and

 The customer must perform some activity in order to be eligible to receive

the value proposition (e.g., customer must enter contest). The inclusion of a

timing constraint and an activity requirement are hallmarks of sales

promotion.

Sales promotions are used by a wide range of organizations in both the

consumer and business markets, though the frequency and spending levels are much

greater for consumer products marketers. One estimate by the Promotion Marketing
Association suggests that in the US alone spending on sales promotion exceeds that

of advertising.

Consumer Sales Promotion

Consumer sales promotions encompass a variety of short-term promotional

techniques designed to induce customers to respond in some way. The most popular

consumer sales promotions are directly associated with product purchasing. These

promotions are intended to enhance the value of a product purchase by either

reducing the overall cost of the product

(i.e., get same product but for less money) or by adding more benefit to the regular

purchase price (i.e., get more for the money).

While tying a promotion to an immediate purchase is a major use of

consumer sales promotion, it is not the only one. As we noted above, promotion

techniques can be used to achieve other objectives such as building brand loyalty or

creating product awareness. Consequently, a marketer’s promotional toolbox

contains a large variety of consumer promotions.

A producer must also guard against the possible negative effect of

discounting on a brand's reputation.

Disanta Ojah:

Sales promotions can be directed at 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

wholesalers are called trade sales promotions. Some sale promotions, particularly

ones with unusual methods, are considered gimmicks by many. Consumer sales

promotion techniques
 Price deal: A temporary reduction in the price; this includes a happy hour

 Cents-off deal: Offers a brand at a lower price. Price reduction may be a

percentage marked on the package.

 Price-pack deal: The packaging offers a consumer a certain percentage more of

the product for the same price (eg: 25% more free).

 Coupons: coupons have become a standard mechanism for sales promotions.

 Free-standing insert (FSI): A coupon booklet is inserted into the local

newspaper for delivery.

 On-shelf couponing: Coupons are present at the shelf where the product is

available.

 Checkout dispensers: On checkout the customer is given a coupon based on

products purchased.

 On-line couponing: Coupons are available on line. Consumers print them out and

take them to the store.

 Rebates: Consumers are offered money back if the receipt and barcode are mailed

to the producer.

 Contests/sweepstakes/games: The consumer is automatically entered into the

event by purchasing the product.

Methods of sales promotion

There are many consumer sales promotional techniques available, summarized in

the table below: Price promotions Price promotions are also commonly known as"

price discounting" These offer either

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

Increased sales gained from price promotions are at the expense of a loss in profit -

so these promotions must be used with care. A producer must also guard against the

possible negative effect of discounting on a brand's reputation

SALES PROMOTION:

Sales promotion includes tools for consumer promotion(samples, coupons,

cash refund offers, price off, premiums prices patronage rewards, free trails,

warranties, Tie in promotion (price off, advertising and display allowances, and free

goods),business and sales forces promotion (trade shows and conventions, contests

for sales representatives and specialty advertising).

Sales promotion tools are used by most organizations, including

manufacturing distributors, retailers, trade associations, and nonprofit organizations.

A decade ago, the advertising- to-sales promotion ration was about 60:40. Today in

many consumer packaged-goods companies, sales promotion expenditures have

been increasing as a percentage of budget expenditure annually for the last two

decades.

Several factors contribute to the rapid growth of sales promotion, particularly

in consumer markets.

Internal Factors:

Include the following: promotion is now more accepted by the top

management as an effective sales goal: more product managers are qualified to use

sales- promotion tools: and are under greater pressure to increase the current sales.

External Factors:

Include the following the number of brands has increased competitors use

promotion frequently many brands are seen as similar consumers are more price-
oriented, the trade has demanded more deals from manufactures and advertising

efficiency has declined because of rising costs, media clutter and legal restraints.

Sales promotion is another important component of the marketing

communication mix. It is essentially a direct and immediate inducement. It adds

extra value to the product and hence prompts the dealer/consumer to buy the

product.

The committee on definition of the American marketing association

defines sales promotion as follows. ‘in a specific sense, sales promotion includes

those sales activities that supplement both personal selling and advertising, and

coordinate them and make them effective, such as displays, shows , demonstrations

and other non-recurrent selling efforts not in the ordinary routine.

Sales displays are the act of putting things for view or on view. In sales

management, sales display means “arranging systematically saleable goods so as to

attract the attention of the customer”. Advertising helps in awareness, reminding and

informing customers about products and services. The actual product is not

displayed in advertising. Sales displays fulfill that need by appealing to the eye of

the prospects. Through a sales display, the manufacturer shows the goods or services

to the customer.

In the past sales display was the only media for exhibiting products and

inducing prospects to buy the same. Sales displays are actually advertising at the

point of purchase.
 Definition of sales:

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

term, designed to stimulate quicker /or greater purchase of a particular product by

consumers and traders .Kotler

“Sales promotion represents those marketing efforts that are supplementary in nature

which are conducted for a limited period of time and seek to induce buying”.

…..Davis

Importance of Sales Promotion:

In a competitive market, sales promotion, sales promotion comes handy to a

marketer, to solve of his short-term hurdles. Short term because, the impact of sales

promotion measures is not that durable and lasting like the results obtained through

advertising and personal selling. Sales promotion, by and large, is understood and

practiced as a catalyst, and a supporting facility to advertising and personal selling.

Types of Sales Displays:

There are three forms of display:

I. Interior Display:

a. Includes on the floor, walls, in show cases and show boxes. Goods should

be neatly arranged inside the retail outlet. In this type of display, proper

lighting and color matching should also be ensured so that the overall

effect of interior display becomes pleasing and attractive.

II. Exterior display:

a. Is the display of products in the show window of the retail outlet? It

creates that long lasting first impression. It also seeks attention of passers-
 by as well as prospects and invites them to enter the establishment.

Window dressing is one example of exterior display.

III. Other displays:

a. Like showrooms, show cases, glass boxes, cupboards, etc. from part of

display. They are used only for sales display but also as a publicity device

for enhancing sales. The success of showrooms and show cases depends,

to a great extent, on the location, decoration, lighting and such other

devices

There are various classes of sales display of which the following are important:

1. Product unit display: Such unit displays use merchandise that is identical in size,

color, shape, use, etc. this type of display is used for bags, readymade garments,

shirts, etc. efficient merchandising is of interest to both the dealer and the

manufacturer.

2. Life-style displays: Using the market segmentation approach, life-style display

are used

Organizing sales promotion campaigns:

Though almost all companies resort to sales promotion techniques, only

some of them go about the job in planned way. Others mostly view sales promotion

as a weapon that can be taken out just like that and used in emergent situation. Sales

promotion yields the intended results only when it meets certain basic requirement.

The condition for success of sales promotion is discussed below

Identifying the requirements:

The first requirement is to identify the specific requirement of the firm in

resorting to sales promotion. Earlier in this chapter, we identified the broad contexts
in which sales promotion techniques can be employed. The find out its need-is it to

bring in substantial extra sales immediately is it to offload accumulated stock is it to

regain loosing consumer interest in the product is it to enlist some support for the

advertising effort that is already on.

Identifying the right promotion programme:

The next step is to identify the apt programme earlier; we discussed the

different tools available for sales promotion. The firm has to select the programme

suitable to the current need and situation. Should it go in for product demonstration

or free samples of the product or should it go in for a large scale consumer contest.

The choice of the programme will be primarily decided by the resources available

with the firm.

Enlisting the involvement of salesmen:

Often, sales promotion programme are conceived and planned at the head

office of the firm and implemented in a hurry without enlisting the cooperation and

involvement of the field sales people. For the campaigns to succeed, it is essential

that the salesmen be briefed on the context and content of the programme.

. They have also to be informed of their roles in the conduct of the

programme, given detailed information / working guides, and be told what they are

expected to do at different stages of the campaign.

Enlisting the support of the dealers (trade):

It is also essential to enlist the support of the dealers in any large-scale sales

promotion venture. Since a major part of the activity to take place around the

dealership, the campaign may flop if the dealer is not motivated to support it . the

pop materials and the product under campaign will get the required prominence only
the dealer so desires. While organizing consumer contests, most companies in

corporate dealer contests and dealer motivation programmes.

Enlisting the advertisement organizing sales promotion campaigns

Though almost all companies resort to sales promotion techniques, only

some of them go about the job in a planned way. Other mostly view sales

promotions a weapon that can be taken out just like that and used in an emergent

situation. Sales promotion yields the intended results only when it meets certain

basic requirements. The conditions for success of sales promotion are discussed

below.

Identifying to the requirements:

The first requirement is to identify the specific requirement of the firm in

resorting to sales promotion. Earlier in this chapter, we identified the broad contexts

in which sales promotion techniques can be employed. The firm most find out its

need to bring in substantial extra sales immediately us it to offload accumulated

stock is it to regain loosing consumer interest in the product it is to enlist is it to

some support for the advertising effort that is already on.

Identifying the right promotion programme:

The next step is identify the at programme. Earlier, we discussed the

different tools available for sales promotion. The firm has to select the programme

suitable to the current need and situation. Should it go in for product demonstration

or free samples of the product or should it go in for a large –scale consumer contest

the choice of the programme will be primarily decided by the resources available

with the firm .a big consumer contest cannot be organized send implemented unless

the firm can command substantial resources and organizing capacity.

Enlisting the involvement of salesmen:

Often, sales promotion programmes are conceived and planned at the head

office of the firm and implemented in a hurry without enlisting the cooperation and

involvement of the field sales people. For the campaigns to succeed, it is essential

that the sales men be briefed on the context and content of the programmed agencies

Support

The advertisement agency’s support is also essential for the successful

working of a sales promotion venture. Since a major part of the activity has to take

place around the dealer shop, the campaign may flop if the dealer is not motivated to

support it. The POP materials and the product under campaign will get the required

prominence only if the dealer so desires.

Enlisting the advertisement agency’s support:

The advertisement agency’s support is also essential for the successful

working of a sales promotion campaign. Carrying out a sales promotion campaign is

as challenging as conducting an advertising campaign. In fact, for an advertisement

campaign, quite often the results are readily available to be measured.

Maintaining the tempo:

Sometimes the sales promotion campaigns are lunched with great publicity

and fanfare. But subsequently the tempo of the programme is allowed to view out. It

is essential that the initial tempo built around the programme be maintained.

Coordination with other elements of promotion:

Sales promotion programmes yield the best results when they are well

coordinated with the other elements of promotion- advertising, personal selling and

publicity. Sales promotion programme cannot be run totally independent of theses

major promotion variable. When used in combination with them, sales promotion

stands a better chance of meeting its aims.

Choosing a push or a pull strategy of sales promotion:

 Push strategy:

A sales promotion programme, aimed primarily at is called push strategy.

The marketer will promote to his products heavily among distributors, wholesalers

and retailers. At the lost stage, the retailer promotes them among consumers. A push

strategy usually involves a lot of personal selling and sales promotion including

contests for sales people and display at trade shows.

 Pull strategy:

With a pull strategy, promotion is directed at the ultimate consumers. The

objective is to motivate them to ask retailers for the products. Strategy relies heavily

on advertising and various forms of sales promotion such as samples free gifts etc.

FACTORS INFLUENCING SALES PROMOTION:

 Target market

 Nature of product and services

 Stage of the product life cycle

 Budget available for promotion.

Tools of sales promotion:

Prize scheme: Prize scheme are an important method of sales promotion. A prize

scheme is designed for retailers/ customer and the dealers to make the scheme

effective, it should be advertised through packages or retailers. The latest method of

advertising is through the press, posters, etc. For dealers, sales competitions are
arranged, prizes are announced or special offers are made if they show a substantial

progress in sales.

Correspondence : This could be an effective device for sales promotion a

specialized correspondence section will be more advantages as it can communicates

very effective with prospects as well as potential customer and established for it is

better equipped to write letters.

Catalogues: These play dominant role both advertising and sales promotion

campaigns. They are largely used when a manufactures different types of products,

distinguishable by size, shape and others features. It is from the catalogue files that

one can get information required about different products of a particular

manufacturer. The following purposes can be served by catalogues.

 To get orders

 To make the customers aware about the specification

 To provide detailed information

 To solicit products sales

Advertising Novelties: Small, Interesting, or personally useful items, etc. can be

used for sales promotion. To be effective, an advertising novelty should meet the

following requirements.

 Origination of display contests among retailers

 Publicity through newsletters mentioning retailer’s name.

 Provision of display good and fixtures at special subsidiaries prices.

 Photo-flashing of retailers display to bother retailers.

 Cooperative advertising and sales promotion, i.e., promoting the retail store

as well as the manufacturers product on cost-sharing basis.

SALE PROMOTION OBJECTIVES:

Sales promotions are increasingly being used to accomplish an ever-

expanding list of marketing objectives. The company’s marketing objectives and

strategies influence the development of sales promotion objectives and strategies.

There can be a number of sales promotion objectives, depending upon the firms

policies, marketing objectives, nature of the product and its stage in product life

cycle, level of existing and anticipated competitive activity, consumer response

pattern economic conditions and the target group(consumers, traders, or sales force)

etc.

Sales promotion objectives could be either proactive or reactive are

 To gain additional market share or additional revenue

 To expand the target market

 To develop favorable consumer experience with the product

 To add extra value to the product and develop brand franchise

 Reactive sales promotion objectives are developed in response to some un

favorable market situation, or where the objectives are essential short term,

such as the following.

 In response to competitive moves

 When excessive inventory piles up

 To generate short term cash

 When the decision is to discontinue a product, or close down the business.

In a dynamic and rapidly changing marketing environment, unfavorable

conditions may appear with little or no warning. It is difficult for the management to
anticipate and plan for such exigencies: however, hasty decisions regarding sales

promotion objectives may sometimes produce adverse effects for the long-run.

An important area that concerns sales promotion objectives is directly related to

the specific promotional techniques to be used. The techniques could be those where

the measurement of result is straight forward, or difficult to measure. For example, it

is easy to measure the impact of discount offer on sales, but it is very difficult to

measure the impact of premium on the perceived value of the promoted brand.

The company can use sales promotion to achieve many objectives: however,

every offer must start by being specific as to what objectives are intended to

achieve. According to Schultz and Robinson in sales Promotion Management

(Chicago: Crain Book, p.149 1982.), the objectives should be:

i. specific

ii. Measurable

iii. clear and concise

iv. practical and realistic

v. affordable, and

vi. Attainable.

Perhaps, the most difficult part in managing sales promotion is to decided which

particular sales promotion tools should be used for achieving the specific

objectives, which of these tools can be and should combined to produce a synergistic

effect, and can these be delivered to the target audience, that is or the sales force.
 DATA ANALYSIS AND INTERPRETATION

1. How long have you been associated with Renault?

a. From 1 year
b. 1 – 3 years
c. 3 – 5 years
d. 5 – 10 years
e. 10 or more years

Years From 1 1 – 3 years 3 – 5 years 5 – 10 10 or more

year years years

No Of 10 20 35 25 10
Persons

Percentage 10 20 35 25 10

percentage

From 1 year
1 – 3 years
3 – 5 years
5 – 10 years
10 or more years

Interpretation: The survey was undertaken for the customers, who have purchased

their vehicle from Sri Viswarupa Automotives Pvt. Ltd Rajahmundry. 10% of the

respondent said the from one year, 20% of the respondents are said 1 to 3 years,

35% of the respondents are said 3 to 5 years, 25% of the respondents 5 to 10 years

remaining 10% of them are said more than 10 years.

Which factor do you considered to purchase of four wheeler?

S.NO REASONS NO. OF CONSUMERS %

1 AVAILABILITY 70 70%

2 AFTER SALES SERVICE 15 15%

3 TIMELYAVALIABILITY 10 10%

4 PRICE 5 5%

TOTAL 100 100%

100
90
80
70
60 REASONS
50 NO. OF CONSUMERS
40
%
30
20
10
0
1 2 3 4 TOTAL

INTERPRETATION: From the table and graphs show that out of 100 consumers,

70 consumers are purchase the cars based upon availability, 15 consumers are

purchase the cars based upon after sales service, 10 consumers are purchase the cars

based upon timely availability, 5 consumers are purchase the cars based upon price.

Finally majority of the consumers are purchase the cars based upon quality.
Are you a satisfied with Renault products.

a. Yes b. No

Objectives No of customers Percentage

Yes 63 63%

No 27 27%

Percentage

70%
60%
50%
40% Percentage
30%
20%
10%
0%
Yes No

Interpretation: The survey was undertaken for the customers, who have purchased

their vehicle from Sri Viswarupa Automotives Pvt. Ltd Rajahmundry. This is one of

the vital and cars aspects of the survey 73% of the respondent said the

service/product was satisfied, 17% of the respondents are partially satisfied with the

service/product, 63% of the respondents are not satisfied with the service/product.

Nearly, 27% of the respondents rated satisfied & partially satisfied regarding overall

performance of service/product and the remaining 27% of them are unsatisfied with

the service/product
Did employee spent more time with you during sales?
a) Strongly disagree
b) Disagree
c) Neither disagree or agree
d) Agree
e) Strongly agree

Objectives Percentage

Strongly disagree 0

Disagree 0

Neither disagree or 5
agree

Agree 15

Strongly agree 80

90
80
70
60
50 Percentage
40 Objectives
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11

Interpretations: According to the survey the employee spent more time with you

during sale is indicating in the percentages of 0% is strongly disagree, 0% is

disagree, 5% is neither disagree of agree, 15% is agree, 80% is strongly agreed.

Do you have Supply in Time?

No of

Sc no Choice Respondents Percentage

1 Yes 75 75%

2 No 25 25%

Total 100% 100%

80
70
60
50
40 No of Respondenis
30 Percentage
20
10
0
Yes No Total
1 2

Interpretation:

The Above Table and Graph Shows that out of 100 Respondents, 75

Respondents Are strongly Agree in With the Above Statement 25 Respondents are

agree With the no, Finally Majority of Respondents Are Strangely Agree With

Above Statement.
If “Yes” Which factor you consider is satisfies you most?

a) Feature

b) Low Maintenance

c) Looks

d) After Sales Service

Objectives No of customers Percentage

Feature 33 33%

Low Maintenance 40 40%

Looks 7 7%

After Sales Service 20 20%

Percentage

Feature

Low

Maintenance
Looks

After Sales
Service

Interpretation: The survey represents the factors of our products which the

customers were purchased on the basis of above tasks. According the analyses our

cars are purchased on the features, low maintenance, looks and after sales service.

33% of customers purchased according to service, 40% of customers purchased

according to Low maintenance, and 7% of people purchased according to Looks,

finally 20% of customers are purchased according to after sales service.

After sale services provide by the company?

No of

S. no Reasons Respondents percentage

1 Good 35 35%

2 Bad 19 19%

3 average 46 46%

Total 100 100%

100
90
80
70
60
50 No of Respondents
40
percentage
30
20
10
0
Good Bad average Total
1 2 3

Interpretation:

The above table and graph shows that out of 100 Respondents, 46

respondents are strongly agreeing with the Average, 35 respondents are agreeing

with the Good and 19 Respondents are agree with the Bad. Finally majority of

respondents are strongly agreed with above statement.

What is the main source of information regarding four wheeler?

No of

S. no Reasons Respondents percentage

1 TV 38 38%

2 Radio 8 8%

3 News paper 29 29%

4 Promotional program's 25 25%

Total 100 100%

100
90
80
70
60
50
40
30
20 No of Respondents
10
0 percentage
TV

Radio

News paper

Total
Promotional
program's

1 2 3 4

Interpretation:

The above table and graph shows that out of 100 respondents,38 respondents

are strongly agree with the TV, 29 respondents are agreeing with the News paper,25

Respondents are agreeing with the promotional program’s and 8 Respondents are

agree with the Radio. Finally majority of respondents are strongly agreed with above

statement.
Whether the advertisement of the company help to promoted the sales?

No of

S. no Reasons Respondents percentage

1 Yes 89 89%

2 No 11 11%

total 100 100%

100
90
80
70
60
50 No of Respondents
40 percentage
30
20
10
0
Yes No total
1 2

Interpretation:

The above table and graph shows that out of 100 respondents, 89

Respondents are strongly agreeing with the Yes and 11 Respondents are agreeing

with the No. Finally majority of respondents are strongly agreed with above

statement.
Are you satisfied with the present distribution system?

S. no Reasons No of Respondents percentage

1 Yes 83 83%

2 No 17 17%

Total 100 100%

100
90
80
70
60
50 No of Respondents
40 percentage
30
20
10
0
Yes No Total
1 2

Interpretation:

The above table and graph shows that out of 100 Respondents, 83

Respondents are strongly agreeing with the Yes, 17 Respondents are agreeing with

the NO. Finally majority of respondents are strongly agree with above statement
Are they charging the same price for the same dealers?

S. no Reasons No of Respondents percentage

1 Yes 67 63%

2 No 33 33%

Total 100 100%

100
90
80
70
60
50 No of Respondents
40 percentage
30
20
10
0
Yes No Total
1 2

Interpretation:

The above table and graph shows that out of 100 Respondents, 66

Respondents are strongly agreeing with the Yes and 34 Respondents are agreeing

with the NO. Finally majority of respondents are strongly agreed with above

statement.
Do you face any market problem regarding Sri Viswarupa Automotives

Pvt.Ltd?

S. no Reasons No of Respondents percentage

1 Yes 42 42%

2 No 58 58%

Total 100 100%

120

100

80

60 percentage
No of Respondents
40

20

0
Yes No Total
1 2

Interpretation:

The above table and graph shows that out of 100 respondents, 58

respondents are strongly agreeing with the No and 42 Respondents are agreeing with

the Yes. Finally majority of respondents are strongly agreed with above statement.
After sales providing the service?

S. no Reasons No of Respondents percentage

1 very good 15 15%

2 Good 24 24%

3 satisfactory 61 61%

Total 100 100%

100%
100%
100%
99%
99%
99% percentage
99%
No of Respondents
99%
98%
Good

satisfactory
very good

Total

1 2 3

Interpretation:

The above table and graph and shows that out of 100 Respondents, 61

Respondents are strongly agreeing with the Satisfactory, 24 Respondents are

agreeing with the Good and 15 respondents are agree with the very good. Finally

majority of respondents are strongly agreed with above statement.

How do you rate the performance of the cars?

a) Good b) Very Good c) Excellent d) Extra Ordinary

Objectives No of customers Percentage

Good 70 70%

Very Good 15 15%

Excellent 10 10%

Extra Ordinary 5 5%

Percentage

Good
Very Good
Excellent
Extra Ordinary

Interpretation:

From the above analysis 70% of our customers are ranked good with our car

performance, 15% are ranked very good, 10% are ranked excellent and finally 5%

are ranked extra ordinary with the car performance. So finally our car’s performance

was good
 FINDINGS & SUGGESTIONS

FINDINGS

 A detailed analysis of the company shows that the company has had a strong

fundamental as well as a strong market performance over the years.

 On an average more than 73% people feel that the prices are affordable

whereas 12% do not agree, 74% believe that attractive discounts are offered

whereas 26% are not satisfied with the discounts offered.

 20% said that the test drives are not offered and 15% said that post sales

follow ups are not done regularly whereas 85% said that they were done

regularly but people feel that it is the people’s car as it is satisfactory on all

other parameters.

 Knowledgeable sales persons, employees spent enough time before and

during sales, display of merchandise is attractive, availability of product,

variety of merchandize, vehicle in good condition.

 Prices are affordable, attractive discounts are offered, décor of the waiting

area is pleasing, responds to complaints quickly, service at Renault service

station is excellent, careful with personal information and is value for

money.

 The overall opinion about Renault is very good.

 The promotional activities of the company are not up to the mark.

SUGGESTIONS

 Increase the profit margin during the continuous financial years.

 Improving the marketing Strategies.

 Analysis the business strategies of competitors.

 Making the decision to capture the rural market.

 More test drives should be offered.

 Post Sales Follow Up as it shows the concern of the company with the

customer.

 Most of the customers are feeling that to increase the after sale service. So

the company may take necessary actions for the sale service and to satisfy

the customers.

 As a promotional measure of Sri Viswarupa Automotives Pvt. Ltd may

increase free services camps.

 Company management should bring pressure on distributors to maintain

stock to their carrying capacity. So that it matches with the expected demand

in peak season.

 This will increase the customer’s loyalty. A few more service stations

smaller in size may be set up in areas where there is more demand which

satisfy more customers of all areas.

 Customers of expecting some complaints during the delivery car.

 Hence, such items may be given to improve customer’s satisfaction.

 BIBLIOGRAPHY

TEXT BOOKS

1. MARGETING MANAGEMENT-PHILIPKOTLER

2. MARKETING MANAGEMENT- V.S.RAMA SWAMY

- S.NAMA KUMARI

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