Chapter 1

Introduction
 CHAPTER 1
INTRODUCTION

1.1 SALES PROMOTION

The role of selling has become more complex because producers are more
technical, buyers are more sophisticated and the competition has become more
intense. This has necessitated the need for proper flow of communication from
the producer to the consumer either along with the product or well in advance of
the introduction of a product into the market. Successful marketing consists in
offering the right product at the right price at the right place and time with right
promotion.

Promotion is an exercise in information, persuasion and influence. Promotion has

come to mean the overall co-ordination of advertising, selling, publicity and
public relations. Promotion is a helping function designed to make all other
marketing activities more effective and efficient. Advertising and sales promotion are
the central elements in a company's communication strategy.

1.1.1 DEFINITION
The American marketing Association to bring a semblance of uniformity and
better understanding in the semantics jungle in the field of marketing. It
defined `Advertising as any paid form of non personal presentation and
promotion of ideas, goods or services by an identified sponsor'.
Sales Promotion is defined by the American Marketing Association in a specific
sense to mean: those Marketing activities, other than personal selling. advertising
and publicity that stimulate consumer purchasing behavior and dealer effectiveness,
such as display, shows and exhibitions, demonstrations and various non recurrent
selling efforts not in the ordinary routine.

1.1.2 CURRENT ISSUES IN SALES PROMOTION

The issue of sales promotion has been receiving increasing attention from both
advertising and marketing professionals and academicians. This increase of attention
can be explained by two major interrelated factors: first, the nature of sales
promotions - it brings certain measurable (as opposed to advertising) impact on sales,
which attracts many marketing managers; it also has been proven by time to be the
effective collection of techniques to increase sales. However, the phenomenon of
sales promotion is not studied very widely.

Sales promotions expenditures for most of the companies are increasing, however
with the total promotional budgets staying relatively the same it can be assumed that
the increase of expenditures on sales promotion come at the expense of decreasing
advertising budgets.

There are several reasons explaining this phenomenon: Increased brand parity and
price sensitivity of consumer- with more brand choices available to the consumer and
with the fact that product differences are becoming less and less apparent, consumers
are becoming more and more reliant to the price and price incentives. This goes hand
in hand with another reason of increasing sales promotions budget - decreased brand
loyalty.
Consumers are getting used to the fact that almost always at least one brand category
is on sale or on a sales promotional offer. Another reason is coming from the routs of
corporate culture and the reward and promotion strategy within corporations - in the
conditions of severe competition there is increasing pressure on brand managers to
show fast results in terms of increased sales and nothing is as effective in short run as
sales promotions to achieve this goal.
Another explanation has to do with the consumer responsiveness to money saving
options - for example the results of NCH Consumer Survey indicate that on average
80.5 percent of consumers in US used coupons over the period of 1996-1999. (Shimp
1993). One more reason for increasing sales promotion importance is that many
product categories on the market are in the mature stage and according to the product
life cycle theory, sales promotions are extremely effective in maturity stage of the
product helping to boost sales.
Finally the reason that is very relevant to highly competitive markets, where
companies find themselves constantly fighting for the smallest piece of market share -
"prisoner's dilemma" spiral - which is very similar to a price war situation.
Manufacturers are locked into defensive reactive escalation of sale promotional
expenditures. If one company cuts its sales promotions, it will suffer short-term loss,
 chances are that competitors will take advantage of that, if the company increases its
sales promotional expenditures short term increase of sales might be very small
because competitor reacts.
Because of highly practical importance of sales promotion the number of publications
in trade press on sales promotion has increased dramatically over the past decade.
However the same is not true for academic press. Though there is a certain increase of
articles on the topic in the academic journals, there still are a lot of potential areas for
research that didn't receive enough attention.
The purpose of this paper is to reveal what is really known and proven about sales
promotions, to systematize knowledge already available, discuss different models
available in literature and to identify possible directions of future research. Please
note that this paper is not intended to discuss the issues relevant to each particular
element of sales promotion, rather it is focused on the general issues and
characteristics shared by all (or most) of the components.

1.1.3 FORMS AND OBJECTIVES OF SALES PROMOTION

There are many sales promotional techniques (and the number is still growing with
the development of new ways to reach consumers), but they can apparently be
reduced to 12 classical and widely used. The rest of the techniques usually include
some kind of combination of these 12 most used techniques of sales promotion.
1. Sampling - the use of various distribution methods to deliver actual or trail size
products to consumers with the purpose to initiate trial.
2. Coupons - A promotional device that provides a price-off to consumer upon
redeeming the coupon
3. Trade incentives - incentives that are given to retail managers and sales people for
performing tasks such as displaying merchandise or selling certain lines of
merchandise.
4. Trade allowances - deals that are offered to retailers for performing activities in
support of manufacturer brand
5. Price-offs - promotion which entails a reduction in the brand's regular price.
6. In, on, and near-packs (and reusable containers) - specially designed pieces that
retailers give to consumers who purchase the promoted product.
7. Free-in the mail premiums - a promotion in which consumers receive premium item
from the sponsoring manufacturer in return for submitting a required number of
proofs of purchase.
8. Self-liquidating premiums - a method where the consumer mails in a stipulated
number of proofs of a purchase along with the fee to cover manufacturer's costs of
shipping and handling of premium item. From manufacturer's point of view this form
of promotion is cost free, and therefore the name is self-litigating.
9. Contests and sweepstakes - a form of consumer oriented promotion in which
winners receive prizes, cash, or merchandise.
10. Refund offers - A cash reimbursement to the consumer by the manufacturer whose
product the consumer has purchased.
11. Bonus packs - Extra-quantities of a product that company gives to consumers at a
regular price.
12. Stamp plans and continuity premiums - type of promotion where the consumer is
getting rewarded for continuos use or repetitive purchase of a product/service, f.ex
frequent flyer programs.
These techniques can be trade or consumer oriented.
Because sales promotional tools are so varied in form, no single unified objective can
be identified for them. There are three major contributions of sales promotions that
have practical influence of the objectives of promotion:
1. Communication - promotions gain attention and usually provide information that
may lead the consumer to the product
2. Incentive - they incorporate some concession, inducement or contribution designed to
represent value to the receiver
3. Invitation - promotions include a distinct invitation to engage in the transaction now.
Within these three major goals that sales promotion help to accomplish, specific
objectives might be reach of new users, reinforcement loyalty of old users, increase
product usage, introduction of new product, increase distribution channels, Obtain
trade support and improve or built trade relationship.

As it is mentioned in the beginning of the paper, the primary objective is to identify

common traits of sales promotional techniques and not each of its elements
separately. So, I'll proceed talking about the objectives of sales promotions and what
sales promotion can do for the company and what it can't do.
1.2 OVERVIEW OF JAGDAMBAY AUTO INTERNATIONAL

1.2.1 Jagdambay Auto International

Established in the year 1995, at the Ludhiana in Punjab, Jagdambay Auto

International has evolved as a competent manufacturer, exporter, supplier
and wholesaler of Sheet Metal, Components, Round Bar Components, Auto
Parts, Pipe Components, Scaffolding, Gate Decoratives and many more.

Keeping in mind requirements of our clients and the quality parameters, we

design and develop our products using latest technology and premium quality
raw materials. Raw materials used for manufacturing our products are sourced
from reliable vendors and are quality tested effectively at time of
procurement. The internationally designed state of the art infrastructure
available with us helps us in delivering a better range of products to our
clients. Divided into several units for maintaining flow of production process,
we are able to manufacture products ensuring zero defects. In our production
unit, we have installation of latest machines.

We keep an eagle eye during the entire manufacturing process of our

products, to ensure the best quality products in the industry. We have a highly
skilled team of quality controllers and they conduct strict quality test on
varied parameters. To keep the environmental guidelines in view we are
registered as an ISO 9001:2015 Certified firm. We use superior quality steel
in our forging process like 20mncr5, 16mncr5, SAE 4140, SAE8620,
SAE1020, Mild Steel, SAE 1045, ST52.3, Low Carbon, EN8D, EN9, EN18,
EN19, EN24. Our professionals work in unison under the inspiring guidance
of our CEO, Mr. Gaurav Verma who have in-depth process knowledge and
expertise in this realm. Such strict quality observance and control has helped
us secure trust of multiple customers besides maintaining profitable &
enduring relations with the old ones. Our team consists of well experienced
and skilled staffs, who are continuously engaged in delivering a better range
of product and building strong relations with clients. People working with us
have helped us in expanding our business from national to global market
place. Our products are delivered on a timely basis at a ffordable prices.

1.2.2 Mission

We are committed to supply high precision and durable products to ensure total
satisfaction of our clients. We have established long lasting relationships with our
clients all across the globe by offering highest quality products.

1.2.3 Our Assurance

As to maintain international standards in terms of our product quality, we make our

approach based on the parameters of total quality management. We use superior
quality raw material with eco friendly chemicals in manufacturing these products. Our
quality controllers conduct stringent quality test on varied parameters to ensure the
quality of our products. During the forging process our quality analyst makes sure that
they procure the raw material from leading vendors and manufacture premium quality
products.

1.2.4 Our Team

We are supported by a team of highly skilled and well-experienced people. Our team
constitutes of 50 people, from different backgrounds and rich experience in their
domains. Sound knowledge and their willingness to deliver the best in the market
have really helped us in achieving a successful position among our client. Leveraging
in-depth industry knowledge and extensive experience our team is fully capable of
meeting the most stringent client specifications. No wonder we are highly appreciated
for our professional and reliable team.

1.2.5 The team consists of:

 Quality control personnel

 Designers
 Engineers
 Technicians and sales
 Management personnel
1.2.6 Customization

As we are customizing our products according to our clients need, we have been able
to expand our business on a global level. Along with the forging we have complete
facility for turning and hardening of the component as per client’s specifications. We
also forge special design as per guided by our clients.
USPs

We provide quality, delivery and competitive price structure on the basis of

experience, qualified staff and world class plant and machinery.
1.2.7 Product Portfolio

As manufacturer of a wide range of rings, combine parts, tractor parts, auto parts,
gears and flanges, we have been able to create a variety in our product library.
Products offered by us are forged as per the demands and specifications of our clients.
These products are designed and developed, with all regards to quality policies and
tested at each stage of development effectively to ensure zero defects.

1.2.8 Some of the salient features of our products are

 High performance
 Used extensively in many sectors
 Made up of high quality raw material
 Eco-friendly
 Consume low fuel
 Customized according to the needs of clients
1.2.9 SALES PROMOTION STRATEGIES ADOPTED BY
JAGDAMBAY AUTO INTERNATIONAL
 Pricing Strategies.
 Publicity
 Advertisement Policy
 Better Sales Force.
 Demonstration.
Addition to this there are many other factors which effects the safes of the
organization but this should be done by keeping the view of product life cycle. All
policies are to be applied according to the market scenario.

1.2.9.1 PRICING STRATEGIES OF JAGDAMBAY AUTO INTERNATIONAL

 Price of the Jagdambay Auto International Firm depends upon the cost of raw
material, in such a manner that with increase in the cost of raw material there will be
increase in the market price of the machinery. But with a decrease in the raw material
the price of the machine will automatically proportion.
 Labor cost puts an great effect on the increase and decrease of the product of
Jagdambay Auto International because they use to have the very skilled labor in the
factory. So that it will conclude a large portion of cost of the production of the
products.
 Inflating and deflation of the market scenario influences in most of the industries and
semi industrial. They use to change their pricing strategy according to the market
scenario. So that different strategies are very helpful to them to survive in the market
well.
 Along with the above the competitors are also in great influence on the pricing
strategy of the Jagdambay Auto International because the customer is very much
aware about the market rate of all the other industries.
They had two types of pricing strategy.
 Skimming Price Policy
 Penetration Price Policy

Skimming Price Policy

Skimming Price Policy sets highest price to first profit from price in elastic customer
then successfully lowering the price often under the increasing competition that is
called ‘Skim the cream’ This means to say that to have an high profit at the most
groom period So that there will be an extra income for to compete in the competition
in the near future and to cover the risk and uncertainties.

Penetration Price Policy

The Penetration Price Policy is a policy where the firm will have low price first and
try to increase their market share at the most by increasing the volume of their product
sales. They use to compete to competitors by most reasonable price.

But the Jagdambay Auto International is the organization where there is a less chance
of decrease in the price tag of their machinery tools.
Product Line Pricing
Firm use to develop lines rather than single product while designing the price
structure of the different product items the firm should take into consideration the
factors like cost different between the items, customer evaluation and the competitors
price. Their prices of the Jagdambay Auto International and the other firms.

Optimal Feature Pricing

This firm offer optimal products or features along with their main product. The
pricing strategy is to keep the prices of the optimal product on the higher side
comparatively.

PRICE ADJUSTMENT STRATEGIES

Geographical Pricing
A firm decide how to price its products to consumer in different parts of the country.
They use to charge the different price rates from the different customers belonging to
different areas of the country. Areas like Hyderabad, Gujrat, Banglore, Gurgaon,
Noida, and Ludhiana are the core area of the Jagdambay Auto International

Discount Pricing and Allowances

 Discounts in the machinery tools are reduction from final selling price that are
available to different channel members and final consumer for performing different
functions.
It can be in a following ways.
1. Trade Discounts.
2. Cash Discounts
3. Quantity Discounts
4. Seasonal Discounts
5. Allowances.

Customer Segment Pricing

In this type customer pays different prices for the same machinery tool.
Location Pricing
Different Location are price differently even though the cost of the offering each
location is the same.
Time Pricing
In this pricing strategy the firm used to charge a price differently in the delivery
period of the machinery to the consumer if the consumer wants its machine most in
the earlear period he has to pay high for it. In the same way if there is a delay in the
delivery of the ordered machine their may be a chances of discounts and other cash
allowances.
Odd Pricing
The Jagdambay Auto International firm is a firm who is not very much aware about
the odd pricing of the products they does not believe in the odd pricing.

Promotional Pricing
In this type the firm generally prices their product below list price. Promotional
pricing can take any of the following such that: -
 Special Pricing
 Low interest Financing
 Warranty Contracts

Low Interest Financing

 Instead of the lowering of the machinery the firm offers customer low interest
financing. IT is very common to the consumer durable especially machinery tool.
Low Interest financing appealing to those customers who cannot give the whole price
at the one time. Here the Jagdambay Auto International firm is taking 25% in advance
and the last 75% will be in installments that can be either 3years to 5years maximum.

Pricing adjustment Policy adopted by Jagdambay Auto International

Jagdambay Auto International is type of firm who is not very much belonging to a
singly pricing strategy. They believe that there should be a different price strategy for
the different consumer to the different areas at the different market scenario. To some
extent they use to have a penetration price policy because there are 300 competitors
are standing in the Ludhiana only and 22 to 30 are such type of competitors who are
producing the products at their quality product level.

So, that the manager of the firm used different price strategies in a different period
after knowing the competitors pricing. For this I have done a comparison of same
segment competitors. These are the firms which are very much aware about the
customer need and satisfaction. They often use to produce their product by an advance
technology which will reduce their cost of the production and also helpful to attract
the more and more customers.

So here the manager of the Jagdambay Auto International firm has to compete with
them by changing their pricing along with the changes in the pattern of their
manufacture style.

1.2.9.2 ADVERTISEMENT
Advertisement is the mass communication of the information entended to enforce
buyers so as to maximize profits. Advertisement is a word which means to turn the
mind toward. It may be to give public notice or to announce publicity.
 To give information to prospective buyer about the features of the machinery tool.
 To create demand
 To maintain market for the product
 To educate people in the use of products
 To remove and overcome competition
 To build goodwill and create brand loyality
 Boost the sales efforts
 Increase sales and reduce cost.

Why Jagdambay Auto International Comes Into Advertisement Market

The Owner of the Jagdambay Auto International believes in the advertisement. In his
point of view he thinks that instead of reducing the cost of the product we should
advertise their product at the large level and will recover the cost of advertisement by
increasing the sales volume and large profit of the firm.
 It creates demand by informing about the prompt availability of the special machinery
tools.
 It promotes sales by marinating the present demand and expending the market by
attracting more and more customers.
 It makes the goodwill by making the name of the firm and his product famous and
known in every industry field.
 Helps in control the sales volume in out of the seasonal fluctuation in demand.
 It facilitates quick turn over rate by promoting highly responsive market and thus
enables the firm to keep smaller inventories which in turn reduces may expenses and
losses.
 It reduces the cost of production by making large scale production through creation of
demand
 It increase profit by increases sales reduction in cost of production and cost of
distribution. As the cost of per unit reduced which will increase sales in turn to which
their will be increase in the profits.

TYPES OF ADVERTISEMENT BY THE JAGDAMBAY AUTO

INTERNATIONAL
Yellow pages book
It is a book in which there are several yellow pages. Yellow pages are the sign of
indication to the consumer who want to buy the machinery tool for the further
 production in their factory. It is the most popular and famous type of advertisement in
the field of industry advertisement.

Press Media
Press media of advertisement refers to publication of advertisement in newspapers
magazines and journals. This is the most important media used by the Jagdambay
Auto International firm. A large number of national state and local newspaper
industrial and technical journal and a wide variety of magazines are available in
which various types of advertises are frequently appearing.

Magazines and Journals

Magazines and Journals are used by the firm periodically may be monthly, quarterly,
or yearly. Jagdambay Auto International use to advertise their products in various
types of magazine like ordinary magazines, special magazines, industry magazines,
machinery tool magazines etc. etc.

Painted Display
Painted Display refers pained bulletins and wall paintings. These displayed on
structure blade of metal or roofs of the building. They are usually of big size that can
be easily read and see from the large distance but this is much costlier which
discourage the Jagdambay Auto International firm.

Direct Mail Advertisement

This is the most common and famous media of advertisement usually used by the
industries of the Ludhiana. From the last three years the Jagdambay Auto
International is also become a great portion in the direct mail advertisement. It is a
way of transmitting advertisement to potential consumer who has selected by the
sellers: -
 It is flexible and may be adopted to suit the specific needs.
 It maintains privacy
 Highly selective and thus less cost
 It is punctual and reaches the person at a time
 It provides educative value.
 It is more effective as the attention of the leader is attracted to only one commodity.

Exhibitions and Demonstrations

These are becoming very popular these days in our county in the field of industry of
machinery tools. There are many types of exhibitions held in the industrial area and
also in the different states related to the industry like Gurgaon, Ludhiana, Delhi,
Chandigarh and Noida. They are organized on a large scale in the industrial places
where masses of industrial consumer can reach easily. They can order a special type
of machine as they required to the manufacturer.

1.2.9.3 PUBLIC RELATIONS

Marketers primarily focus on customers and distributors but needs and interests of
other groups such as those of employees, shareholders, local community, media,
government and pressure groups are also important.

Public relation is the management of relationships and communication to establish

goodwill and mutual understanding between an organization and its publics. Public
relations is more wide ranging than marketing which primarily focuses on markets,
distribution channels and customers. By communicating to other groups, public
relations creates an environment which it is easier to conduct marketing. Public
relation activities include publicity, corporate advertising, seminars, publications,
lobbying and charitable donations

Functions of public relations

Public relation accomplishes many objectives:
 Facilitates company's overall Reputation.
It fosters prestige and reputation which can help companies to sell products, attract
and keep good employees, and promotes favorable community and government
relations.

 Aids Promotion
It can help in promotion of products. Awareness and interest in products and
companies can be generated. Desire to buy a product is helped by unobtrusive things
 that people read and see in the press. People increasingly understand that media has
its own interests to serve but still they are more likely to believe the story on a product
appearing in the media than the claims made by the company in its advertisement.
 Helps in tackling social and environmental issues
If the company has a good record of fulfilling its societal obligations and safe
guarding their environment. It is occasional breach will be looked at with benevolence
and the organization will be allowed to meets its ways amicably by government
bodies and pressure groups.
 Ensures that customers are treated well
The company realizes that customers are habitual story tellers. If a customer is not
treated well by the company he will spread the story far and wide. And if he perceives
that the company has gone out of its way to be of help to him, he will be equally
profuse in its praise. The need to maintain good public relations ensures that
customers are presented with useful information, are treated well and have their
complaints dealt with fairly and speedily.
 Develops reputation as a good supplier and customer
It helps in building reputation as a good customer for its suppliers and a reliable
supplier for its distributors and customers. Customers and suppliers are likely to
believe that a company with good reputation with other stakeholders will also keep its
commitments with them. With increasing globalization of business getting a favorable
international media coverage has become imperative for attracting customers and
suppliers from across the world. When distances between a company and its suppliers
and customers increase what appears in the media about the company becomes a very
important criteria in the decision of the suppliers and customers to consider doing
business with the company. Detailed evaluations obviously follows but a company
with a bad media coverage gets blocked out right in the beginning of the customers'
and supplier-evaluation process.

Methods of Communication for Public Relation of Jagdambay Auto International

 Direct Mail
 Press Release
 Leaflets
 Pamphlets
  Booklets and outlets
 Exhibitions and Trade fairs
 Demonstrations
 Word of Mouth.
 Seminar and conferences.
 Publicity
 Donation to Charitable trusts

1.2.10 SALES AND DISTRIBUTION EXPENDITURE:

The following chart shows the trend of sales and distribution expenditure taking 2013-
18 as base year:
Year 2013-14 2014-15 2015-16 2016-17 2018
Rs. (‘000) 3455 3685 3743 2659 2264
% 100 106.6 108.3 76.96 65.52

120

100

80

60
%

40

20

0
2013-14 2014-15 2015-16 2016-17 2017-18

Since the last two years the concern has reduced its sales promotion expense, which is
the main reason for the fall in the sales and distribution expenses trend line. The
reason being that high quality well established cycle parts manufacturers and leaders
need not spend on such petty sales promotion expenses.

Sales are given boosters by marketing agents as well as annual personal visits by the
directors of the industrial house. In addition, personal visits on the ceremonial
 occasions in the dealers' family functions either by the directors or by their
representatives are positively made to keep the intimate relationship, which directly
affects the sales promotion. At the same time any of the dealers visiting the factory
premises is very well attended to and given due care and respect, simply targeting to
boost the sales.

The undertaking is not dealing in any kind of petty sales promotional activities such
as contests among dealers, parties and get-togethers or offering bonus or gifts through
PRO's.

 Peak Seasons Of Sales

There are generally two dips in the sales in a year, which coincide with fall in
production a month before. This happens because of working labourers are mostly
migrants of rural background who leave during harvesting seasons for their native
land thereby affecting the production and the sales are therefore directed to oblige the
orders in response to the reduced stock and production. However, there is an
escalation in the sales following rains because of increased wear and tear, which
directly increases the demand, and hence there is a transitory boost up of sales.

 Credit
Finance is the lifeblood of business. The financing function of marketing refers to the
service of providing credit and money required to meet the costs of getting
merchandise into the hands of the ultimate consumer. Pyle remarks,
"Money or credit is the lubricant that facilitates the operation of marketing machine."
Market financing may be divided into two major groups:
1. Credit — It involves the postponement of payment to some period following purchase
of a commodity and
2. Loans - It involves the advancement of money on either a short term or a long-term
basis for the financing of an undertaking.

The firm's ability to manufacture and market its product first and foremost depends on
its ability to both avail and grant credit. The present day marketing depends too much
on the effectiveness in the credit control programme. For its own needs the firm may
 depend on its own sources or the loaned funds from banks and financial institutions
depending upon the nature and volume of business. While granting the credit the
credit period is decided before hand to ensure the payment in time.

Bcekman and Holtzelaw developed the criteria governing the basis of credit as:
(i) the moral basis and
(ii) the material basis

which lean on the three C's of granting credit i.e. character, capacity and capital,
where character depicts the moral basis and capacity and capital the material basis.
Further, to avoid the risk of losses arising out of non-payment or expenses involved
the businessmen indulge in innumerable activities.
 They offer inducements in the form of general discounts for immediate or early
payments.
 Some concerns even establish the credit control departments that maintain up to date
accounts with in built safety measures to indicate danger signals.
 Efficient and up-to-date accounting can reduce the magnitude of bad debts by
indicating the danger signals.
 Credit insurance is another way to overcome such losses.
 Appointment of factors also rescues the firms from the credit risks.

The Jagdambay Auto International director considers credit to be the backbone of

every business and sales are directly linked to credits irrespective of its linkage to
purchase.
 Average collection period
70

60

50

40

30 Average collection period

20

10

0
2013-14 2014-15 2015-16 2016-17 2017-18

Year 2013-14 2014-15 2015-16 2016-17 2017-18

In days 39 49 50 55 60

Jagdambay Auto International had framed its credit policy offering 30 days credit
period but due to the increased market pressures this has doubled since last few years,
which is clear from the above chart.

The house although not getting any overdue credit from the market but has its
indwelling strong finances to purchase within a specified period and selling its
products again within a specified sale credit period. Nevertheless the corporation
keeps a high loan limit from the bank for more than 100% surety of smooth sales
activity.

However, few dealers do create bad debts but regular pulling up and warning to bring
these dealers in line with the help of regular heavy pressure on the agents procuring
orders bring back the financial deficit collected though a little late. It is at rare
occasion that industrial house directors had to take strong decision for a sporadic
dealers to not to give goods further till bad debts are cleared first. Most of the time it
is the congenial atmosphere that prevails in the sales of this house.
The following table and graph shows the picture of outstanding debtors and cheques
for the last few years :

Outstanding debtors & cheques

3000

2500

2000

1500

1000

500

0
2013-14 2014-15 2015-16 2016-17 2017-18
 Year 2013-14 2014-15 2015-16 2016-17 2017-18
In days 1551 1441 2429 2828 2715

The fruit of congenial atmosphere in all these years has been sweeter because of
regular upkeep of accounts on daily basis to which four stars have been added because
of availability of maintenance of accounts by Tally under the watchful eye of
qualified computer professional. Any moment any dealer is found crossing the
danger line is immediately targeted and given caution to immediately clear the debts
within the stipulated period.

1.2.11 TERMS OF SALE

Price remains vague unless all details about the terms of sale are clearly spelt out. An
efficient marketing manager therefore decides about the terms of sale before
negotiating with the customer. The discussion of the terms of sale with few
adjustments and alterations clinches the deal in a convincing manner ensuring best
value for money and making both sides clear of their respective obligations.
The marketing manager must enlist the following terms in his policy :
 Price - F.O.B. price/ Cash sale price/Credit sale price/Installment sale price/Ex-
warehouse price/Destination price
 Discounts — Specific/Cash discount/Trade discount/Festival discounts/Quantity
discounts/Rebates
 Place of delivery
 Mode of delivery
 Date of delivery
 Packing
 Insurance
 Legal terms
 Arbitration and adjudication
 Other specifications
 At Jagdambay Auto International the terms of sale are always discussed before
accepting the order. There are no overheads or hidden charges, which is the basic
policy of company that is appreciated by most of the dealers scattered all over India.

Rates are uniform for all the dealers irrespective of their business standing, sales
status or are of operation. Time duration for selling the goods on credit basis is fixed
and is not compromised; normally it is 60 days.

In case there is poor performance in making the payment in specified period a request
followed by caution, followed by warning and if not attended to is followed by
stopping the sale of goods to the defaulted dealer till all the dues are cleared. For
recovery booking agencies are actively involved and pressurized to assure recovery of
payment and a word of promise to not to default in future is ensured before permitting
dispatch of next consignment.

This good policy though better at times for some has been able to yield the best of
results with continuous sale and receipt of money against the sold goods.

1.2.12 SALES FORCE MANAGEMENT

The company's sales force is one of the important factors that can make or mar the
image of the company and thus decides the fate of the company. The effectiveness of
the sales force determines the extent of achievement of the marketing objectives;
relevant example to this is that of Eureka Forbes.
Sales force management implies the management of the people effecting sales and it
involves the following activities :
 Planning the sales force requirements and fixing up their objectives
 Recruitment and Selection of capable and qualified salespersons.
 Equipping and assigning tasks to the appointed sales persons.
 Directing, Supervising & Controlling their activities.
 Compensating them sufficiently.
 Motivating and training them for further improvement in performance.

It aims for the all round development of the human resources and involves:
 1. personal development of salesman
2. use of computers in sales management
3. more professionalism in personal selling field.
In Jagdambay Auto International sales agents are recruited on the basis of
recommendation by the already existing agents and preferably from their families. It
is not the personal qualification which is given weight age rather it is their way of
talking, presentation, selling skill (which is partially taught in the office itself) and
conduct with humility, honesty and punctuality which is given preference.

Refresher training course is given in the office by the already working senior agents
as well as staff members followed by practical hand to accompany the senior agents
for different areas is given and if the candidate successfully comes out with
flourishing colours is then entrusted with the test task to go alone and bring the order.
And in case he is able to improve upon the existing sale from a particular region is
given a pat on the back along with the token money as a gesture by the senior director
of the firm and encouraged to continuously improve upon the given target to fetch
more money, more prize money, more confidence of the directors and above all the
blessings of good relation with the house. This policy is very well reflected in the
sales executives and agents who have attached their services with the house since fifty
years without any grudge or grievance against the industrial house.

For the marketing of its best quality cycle parts I observed and came to the following
conclusion as regards through the

1.2.13 CHANNELS OF DISTRIBUTION

A channel is a pipeline through which a product flows on its way to the consumer. It
bridges the gap between the producer and the consumer.
Where we are? Where we want to go?

Gap
Channels of Distribution
Producer Consumer
 Typically, the marketing channels involve the middlemen who may be the
wholesalers, retailers, dealers, distributors or agents. John A. Howard defines
"Marketing channels are the combination of agencies through which the seller
markets his product to the ultimate user." A variety of channels are available to the
organizations and the most

The functions performed by the channels highlight their significance in marketing of

the product. In brief they perform the following functions
 Financing the producers indirectly by reducing inventory requirements, and finance
the customer directly by extending credit.
 Match the assortments and quantities of goods desired by customers with those
available.
 Promote the products through advertising, displays, exhibitions etc.
 Providing transportation and warehousing facilities.
 Bearing risk.
 Grading and packaging the products.
 Service the products and provide advice on their use.
 Providing market information

The marketing manager should, therefore, make a careful choice of the marketing
channel as the wrong choice may result in delay, deterioration of product, more
 expenditure, ineffective presentation of product, loss of market, poor customer service
and higher channel maintenance cost ultimately landing the enterprise towards losses.

So the marketing manager must the following factors while selecting the marketing
channel:

Product & Market Characteristics Company Characteristics Middlemen Considerations

* No. of customers
* Cost of Product
* Frequency of purchase
* Service level required
*Technical nature of product
Com
* Geographical concentration of market
* Type of the product
* Degree of channel control
desired
* Financial Resources
* Propensity to assume risk
* Management ability
* Service provided by middlemen
* Availability of middlemen
* Attitude of middlemen towards
manufacturers' policies

Jagdambay Auto International believes to distribute ten packs to ten people

individually rather than giving ten packs to one man and asking him to distribute. The
firm does hot have any distributors. The sales are directly destined to the individual
dealers all over India. The dealer network comprises of more than 1500 concerns all
across India. The higher sales can be achieved and are in demand by bigger houses of
bicycle assemblers but the sales are actually achieved through a wide range of dealers
on regular demand, which remains on higher side throughout the year because of good
quality of the product.

The house has kept a network of order procurement agents who cover different
national regions and areas at regular intervals to bring regular orders and payments for
smooth continuous sale of the products. In addition certain dealers place the orders
directly but the commission of the agents are passed on to them even if the direct
order from his region is received in the central office. Any defaulter in payment is
initially requested, then cautioned, then warned and is not given the supply till he
clears the backlog of his dues. Agents are partly involved to sort out such kind of
problem, if arises. However, such instances have been very-very few in the last fifty
 years because of good dealing and regular upkeep and maintenance of proper records
and accounts,

MARKET COVERAGE
A major decision in marketing is to decide about the extents f market to be covered by
the firm and is measured by the percentage of a]] potential outlets that a firm wants to
carry its products.
There are three basic coverage strategies :
1. Intensive distribution - It means maximum coverage as the marketer sells its
products through every available outlet where the consumer might look for.
2. Selective distribution - The manufacturer sells through multiple but not all possible
outlets.
3. Exclusive Distribution - this is the most restrictive one with only one outlet in a
geographical area.

Intensive Selective Exclusive

Distribution through
Distribution through multiple but not Distribution
every reasonable reasonable outlet in the through single
outlet in market market wholesaling
middleman in the
market

Jagdambay Auto International has the stress and priority to fulfill the national
demand over the international orders perhaps because of the instability in
international requirements over a number of years.

Market coverage is all over India - Punjab, Harvana, U.P., M.P., Chhatisgarh,
Assam, Tamil Nadu, Maharashtra, Raiasthan etc. irrespective of status of the
dealers till his financial dealings are up to the mark. No exclusive rights of sales are
given to any dealer. Directors do visit various dealers at least once in a year to
practically know the difficulties, if any and the gap that needs to be fulfilled.
At this juncture the director of the house do make personal gestures distributing some
gifts to almost all the dealers, giving attractive gifts to those who are showing rising
trends in sales but no financial or extra benefits on sales is offered to any of the
dealers to keep a uniformity and universality among the dealers. This part of industrial
house strategy though difficult to swallow for a few but mostly it is appreciated and
linked by most of the dealers scattered over different parts of the country
 Chapter – 2
Review of the literature
 REVIEW OF THE LITERATURE

Klaus (2015) highlighted that customers perceive quality on three dimensions: brand
experience, service experience and post-purchase/ consumption experience. The
research has also pointed out that customers experienced quality, while evaluating
significant marketing outcomes like satisfaction, level of loyalty and word of mouth
publicity.

Stanković et al., (2012) analyzed that over time, consumer behavior begins to differ
between the groups to which they belong, as well as individually. Companies use
tools for sales promotion when they want to achieve in the short run acceleration or
increase of sales to customers. At a time of increased competition when most
companies apply sales promotion activities, it is crucial to be the first and innovative.
When profitable growth is defined as a goal then it means to build customer loyalty
by offering them an additional value.

Homburg, Muller and Klarmann (2011) discussed the challenges faced by sales
people to understand consumer behavior that boost up sales growth. Data has been
collected from across industries through a survey of sales managers, sales
representatives and customers. With reference to product promotion through personal
selling, the findings highlight that an optimum level of customer orientation is
essential with regard to individualized products having premium price and high
degree of competitive intensity.

Hanawalt and Rouse (2010) identified the issues leading to success or failure of an
automotive, analyzing product successes and failures in United States during the last
50 years. The development and analysis of twenty case studies have found several
factors driving the fate of the products launched. The results indicate that the product
development system of new vehicles with high success has emerged from financial
and corporate responses to market crisis. The target segment of a new entrant in the
automotive sector and its progress depends on the economic conditions of buyers and
the leadership position of the firm.
Božidarević and Salai (2009) observed that the promotional activities include
different set of targets oriented communication with stakeholders in order to achieve
the desired image in the public that will contribute to the realization of the planned
business objectives. Promotion is an effective way of influencing the results of the
operations of business organizations. The role of promotion in marketing program is
of dynamic character, which means that there is no defined promotion of combined
marketing mix, even for businesses or for products of a production program, but they
are subject to change as well as the other instruments of the marketing mix. The
promotional activities also include advertising, sales increase, personal selling,
publicity and public relations.

Maričić (2008) stated that selling products companies mostly come into direct contact
with the consumers for the first time, which provokes different reactions. As sale
represents an inevitable phase of the cycle of reproduction so is its improvement an
important form of promotion as an instrument of the marketing mix. Consumers are
constantly in apposition to choose between two or more alternatives, where the
decisions by itself means the intention of consumers to purchase products and services
and meet the specific needs and desires.

A study by Yeniyurt, Townsend and Talay (2007) identified factors impacting the
launch of brands in emerging global markets. The multiple indicators of activities can
contribute to experiential learning while launching brands globally. Market
attractiveness positively impacts the possibility of a brand being launched in an
emerging market. This indicates that potential demand conditions should be
considered during the product introduction stage. The results have shown significant
outcomes with respect to the role of psychic distance and experiential learning. There
are lesser probabilities of brands launching into nations that are culturally and
economically less similar to the domestic market. From a managerial perspective, this
research suggests that enterprises should look for acquiring both local and global
expertise to materialize the launch of products and brands in the international markets.

Sundarsan (2007) evaluated the effectiveness of advertising on sales of small and

large firms, and for multinational corporations. The results showed that advertising
has influenced sales, though its relative effectiveness was not the same for all the
categories of firms.

Jobber and Fahy(2006) pointed that the increase in sales during a short period of
timeto reduce inventory or to achieve a financial plan before the deadline is an
important objective of sales promotion activities conducted by the company. The
companies that compete with each other over a long period bind customers to
themselves through the entire sales promotion activities, thereby increasing the
frequency of repeated purchases during the promotion period.

Hemdev (2005) stated that Marlboro advertisements have benefitted by the tradition
that precedes them. They have captured a complex message which attempts to
differentiate a product from competitors that are largely the same, through simple
image and few words. The success of Marlboro brand can be attributed to the
branding strategy used by its parent company - the Altria Group. Altria has opted for
an endorsement strategy. In this strategy, individual brands and divisions are
marketed under the canopy of the parent company. The combination of brand equity
of the parent company with the value of individual brands and divisions has created
greater impact. It leverages the endorsement equity of the parent across divisional and
product categories. The brands and divisions retain their identity and can be included
in the total equity of the company. Thus, it brings recognition among the shareholders,
increased crossselling opportunities, and endorsement credibility for new products or
services.

Guo (2003) examined the relationship between advertising and consumption at macro
level using the US data on advertising expenditure, personal consumption and
disposable income. The study with the use of unit root tests and co-integration
analysis substantiated the existence of co integration among variables, which reveals
the presence of long-term equilibrium relationship among them.

Kamber (2002) found a measurable relationship between advertising expenditure and

sales, even after controlling other factors, such as, company size and past sales
growth, etc.
A study Beverland (2002) analyzed the strategy adopted by large New Zealand based
companies and reveals that the relationship with East European traders is context
driven. It has been debated that relationship marketing models accurately capture the
trading realities of market entry in Eastern Europe. A series of propositions have been
developed with respect to the research which has reflected uncertainties in market
entry, formation of alliances and building relationships.

Smith (2002) analysed that activities of sales increase stimulate consumers to try products,
sellers use promotion as an incentive instrument to promote in order to attract new
customers, reward loyal customers and increase the rate of repurchase of occasional users.
Companies in the competitive contest implement the sales promotion activities to obligate
themselves to those consumers who go from one to another brand and who primarily search
for low prices. These activities encourage the sale of products and services, and thus the
economic effects of trade and production with esthetic decoration of shop windows, interior
and exterior sale points, contributing to the rationalization of work in the store and helps
customers to more quickly and more comfortably choose and buy certain products.

Elliot (2001) revealed that advertising has a significant positive effect on food
industry sales and this relationship between advertising expenditure and sales appears
to be stable.

Pagan et al (2001) studied the effectiveness of advertising on sales using bivariate

Vector Auto Regression model and showed that one time increase in advertising
expenditure leads to increase in the sales of orange with a one month lag. It was also
found that the impact of advertising expenditure on grape fruit sales is more
immediate and relatively large. While analysing the relationship between a company’s
advertising expenditure and its sales during the recession.
 Chapter – 3
Research Methodology
 CHAPTER – 3
OBJECTIVES AND RESEARCH METHODOLOGY

3.1 NEED OF STUDY

The function of marketing is to ensure that the right product is made available at
the right place, in the right quality, at the right price, at the right time and under
the right impressions to the consumer. All these righteousness is made possible by
performing the sales function. Thus, sales function is the pivotal factor in any
organization. It is even capable of deciding the very existence of an
organization. The various promotional mix elements are designed for achieving
better sales. Advertising is a necessity with a view to maximization of the return on
the money invested. The probability of securing the optimum effectiveness is greater
when advertising is adequately planned, executed and constantly evaluated in terms of
carefully crystallized objectives. Thus, advertising offers a reason to buy while; sales
promotion offers an incentive to buy.

3.2 OBJECTIVES OF THE STUDY

The study on effectiveness of sales promotion and advertising activities with special
reference to Jagdambay Auto International.
 To find out the factors that influences the purchase decision of dealers/consumers.
 To identify need of new innovations of the company towards sales promotion.
 To know about the different strategies for sales promotion.

3.3 MEANING OF RESEARCH

Research is a systematic method of finding solutions to problems. Research simply
means a search for knowledge. Research is an original contribution to the existing
stock of knowledge making for its advancement. It aims at discovering the truth.
Research is a process of systematic and in-depth study or search of any particular
topic, subject or area of investigation backed by collection, computation, presentation
and interpretation of relevant data.
3.4 MEANING OF METHODOLOGY
Methodology means methods of conducting research and the logic behind the
methods. The methodology is the theory of how research should be undertaken. It is
the tools and techniques used to obtain and analyze data.

3.5 MEANING OF RESEARCH METHODOLOGY

Research methodology means the method adopted in studying the problem. It helps in
explaining the tools and techniques used in studying the problem under study. It is
necessary that the researcher should know which tool is used and for what purpose.
Research methodology is a way to systematically show the research problem. The
research methodology not only talk about the research methods but also consider the
logic behind the method we sue in the context of our research study and explain why
we are using others so that the research results are capable of being evaluated either
by the researcher himself or by others.

3.6 RESEARCH DESIGN

Research design is the “framework or blueprint” for collecting information needed in
the best possible way. The correct design will save resources and also tests the
validity and the reliability of the research.
A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance of the research purpose with economy in
procedure. It constitutes the blueprint for the collection, measurement and analysis of
data. The design includes an outline of what the researcher will do from writing the
hypothesis and its operational implication to the final analysis of data. The decision
with respect to the following will be included in the research design.

3.7 DESCRIPTIVE RESEARCH

In this study descriptive type of research is adopted. This type of research includes
surveys and fact-finding enquiries of different kinds. These major purpose of
descriptive research is description of the state of affairs as it exists as present. The
main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening.
3.8 METHODS OF DATA COLLECTION
The search for answers to research questions calls for collection of data. Data are
facts, figures and other relevant materials, past, and present, serving as bases for study
and analysis.

3.8.1 Primary Data:

Primary data is collected with the help of interview techniques, question naire
and consumer survey methods. Interview is an effective, informal verbal and non
verbal conversation, initiated for specific purpose and focused on certain
planned content areas. Questionnaire is a systematic compilation of questions
that are submitted to a sampling of population from which information is
desired. Consumer surveys are conducted to learn what consumers think of
promotion how many took advantage of it and how the promotion affected
subsequent brand-choice behavior.

3.8.2 Secondary Data:

Secondary data sources include:
a) Annual financial report of the firm
b) Magazines: Business Today.

3.9 SAMPLING TECHNIQUES

The sampling method adopted is the non-probability sampling method. In non-
probability sampling method the convenience sampling method is used here. In
convenience sampling method the researcher can collect the samples as per his or her
convenience. This is usually adopted when the population is unknown and the area of
study is very wide.
3.9.1 Population Size:-
Population Size of this project is unknown.

3.9.2 Sample Size: -

It is the number of items that has been selected from a population to make the study.
Sample size of 50 samples was considered for this study
3.9.3 Area of the study: - The study has been conducted only on the Ludhiana district.

3.10 SAMPLING METHODS

The sampling method adopted is the non-probability sampling method. In non-
probability sampling method the convenience sampling method is used here. In
convenience sampling method the researcher can collect the samples as per his or her
convenience. This is usually adopted when the population is unknown and the area of
study is very wide.

3.11 TOOLS USED FOR DATA ANALYSIS

The collected data were analyzed with the help of simple percentage analysis.

Percentage Analysis
Percentage refers to a special kind of ratio in making comparison between two or
more data and to describe relationships. Percentage can also be used to compare the
relation terms the distribution of two or more sources data.
Number of Respondents
Percentage of Respondent = x 100
Total Respondent
 Chapter – 4
Data analysis
and
Interpretation
 CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
Data analysis refers to collection of organize information usually analysis the result of
experience, observation or experiment, or a set of premises. This may consist of
number, words or images, particular as measurement or observation of set of
variables. Interpretation is a communication. It is telling a story. It is vital part of how
people experience the places there is it. The good interpretation will leave your
visitors felling connected, inspired and alive with curiosity.
4.1 EFFECT OF MEDIA
Media No. Of Respondents Percentage

Visual 20 40
Print 15 30
Audio 2 4
Displays 1 2
Banners 2 4
Brochures 10 20
Total 50 100

45

40

35

30

25

PERCENTAGE
20

15

10

0
Visual Print Audio Displays Banners Brochures

Figure No. 4.1

Result shows that visual media and print media influence customers mostly and
brouchers also attract the customers. About 40% were influenced by visual media,
30% by print media, and 20% by brouchers, Audio media, displays and banners
attracted 4% and 2%.
4.2 DEALER DEMONSTRATION

ATTRIBUTES NO. OF RESPONDENTS PERCENTAGE

Excellent 10 20

Good 25 50

Satisfactory 15 30

Poor 0 0

Total 50 100

Poor

Satisfactory

Good

Excellent

0 10 20 30 40 50 60

Figure No. 4.2

About 50% of customers respondent dealer demonstration was good while 30%
demanded that the result was only satisfaction. And 20% commanded it to be
excellent.
4.3 SUCCESS OF ADVERTISEMENT MESSAGE

ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE

YES 30 60
NO 20 40
Total 50 100

YES
NO

Figure No. 4.3

About 60% demanded that advertisement message has succeeded in influencing the
customers while 40% had negative opinion.
4.4 CUSTOMER SATISFACTION

ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE

Excellent 14 28
Good 28 56
Satisfactory 8 16
poor 0 0
Total 50 100

PERCENTAGE

Excellent
Good
Satisfactory
Poor

Figure No. 4.4

About 56% of customers were of the opinion that, the product provided good quality
while 28% commended it to be excellent and 16% it as only satisfactory.
4.5 NEED FOR ADDITIONAL ADVERTISEMENT AND SALES
PROMOTIONAL ACTIVITIES
ATTRIBUTES NO.OF RSPONDENTS PERCENTAGE
YES 20 40
NO 30 60
Total 50 100

PERCNTAGE

YES
NO

Figure No. 4.5

About 40% of customers demanded on the need for additional sales promotional and
advertisement activities while 60% were satisfied with present status.
4.6 CUSTOMER DEALER RELATIONSHIP

DEALER NO.OF RESPONDENTS PERCENTAGE

RELATIONSHIP
Cordial 20 40
Very Friendly 15 30

Hostile 12 24
Poor 3 6
Total 50 100

PRECENTAGE

Cordial
Very friendly
Hostile
Poor

Figure No. 4.6

About 40% of the customers were of the opinion that the customer’s relationship was
cordial and 30% as very friendly, 24% as hostile. And 6% commanded it as not very
good.
4.7 SATISFACTION WITH SALES PROMOTIONAL ACTIVITIES

LEVEL OF SATISFACTION NO.OF RESPONDENTS PERCENTAGE

EXCELLENT 5 10
GOOD 25 50
SATISFACTORY 20 40
POOR 0 0
Total 50 100

Percentage

10

40 EXCELLENT
GOOD
SATISFACTORY
POOR

50

Figure No. 4.7

50% of customers were the opinion that the present sales promotional activities were
good and 40% commended it as satisfactory and other 10% as excellent.
4.8 DELIVERY MODE OF COMPANY
DELIVERY MODE NO.OF PERCENTAGE
RESPONDENTS
Prompt Delivery 30 60
Slightly Late 16 32
Very Late 4 8
Total 50 100

60

50

40

30

20

10

0
Prompt delivery Slightly Late Very Late

Figure No. 4.8

60% of customers were the opinion that company delivery is on prompt and 32%
replied that slightly late and remaining 8% replied that delivery of Jagdambay Auto
International is very late.
4.9 PAGE IN PRINT MEDIA TO GET MAXIMIUM ATTENTION

DETAILS OF PAGE NO.OF RESPONDENTS PERCENTAGE

First 20 40
Middle 5 10
Last 25 50
Total 50 100

First
Middle
Last

Figure No. 4.9

50% of customers demanded print media advertisement as more attractive and

influencing on last and 40% were of the opinion on first page and some customers
about 10% respond as middle page.
4.10 GIFTS GIVEN BY COMPANY

ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE

Very Good 22 44
Good 18 36
Average 10 20
Bad 0 0
Very Bad 0 0

45

40

35

30

25

20

15

10

0
Very Good Good Average Bad Very Bad

Figure No. 4.10

44% of customer’s opinion that gifts given by the company is very good, 36% opinion
that it is good and 20% opinion that it is average.
4.11 SATISFACTION WITH PRICE OF THE PRODUCT

ATTRIBUTES NO.OF PERCENTAGE

RESPONDENTS
Highly satisfied 10 20
Satisfied 20 40
Moderate 14 28
Dissatisfied 6 12
Highly Dissatisfied 0 0
Total 50 100

40

35

30

25

20

15

10

0
Highly Satisfied Satisfied Moderate Dissatisfied Highly
Dissatisfied

Figure No. 4.11

40% of customers tells that they satisfied with price,20% are highly satisfied with
price, 28% are moderate with price and 12% are dissatisfied with price
4.12 DIRECTING MARKETING STRATEGY

ATTRIBUTES NO.OF PERCENTAGE

RESPONDENTS
Very Good 24 48
Good 12 24
Average 6 12
Bad 4 8
Very Bad 4 8
Total 50 100

Very Bad

Bad

Average

Good

Very Good

0 10 20 30 40 50

Figure No. 4.12

48% of customers tell that direct marketing strategy of Jagdambay Auto International
is very good, whereas 24% replied as good, 12% average, 8% bad and very bad for
each one respectively.
 Chapter – 5
Findings, Suggestions,
Limitations & Conclusion
5.1 FINDINGS
 Company produces more environmental friendly products to customers & also try to
attain maximum consumer satisfaction.
 Company favour traditional line of sales promotion programmer like transporting
products directly to the shops.
 Company provides discount coupons gift etc to the customers.`
 As a trend in our economy, numbers of farmers are on decreasing stage it will affect
the demand of cattle food.
 Company faces competitor’s effectively through quality and effective sales promotion
program of the company.
 Company always depends upon the middlemen for distributing goods, and then never
adopts direct marketing strategy.
 Company is on developing stage with many of branches and products.
 The whole office work is done through computerized technology.
 Company uses process cum machines for production process and packing. Direct and
close supervision used by Jagdambay Auto International.
 Company factors horizontal communication by method of written communication.
5.2 SUGGESTIONS
 Marketing department should concentrate more on Ludhiana district explore the
chances created by the opening of a new plant.
 Strict cost control measure should be taken to reduce unnecessary over heads.
 Make appropriate market study and introduce more innovations in sales.
 Advertising through media should be used as effective sales promotion program.
 Direct marketing technique should be used for effective sales promotion program.
 Diversification of products should be used as the key to future growth.
 The company should pay more attention to outside Ludhiana markets.
 Customer retention measures should be enhanced.
5.3 LIMITATIONS OF THE STUDY
1) Time Factor: The researcher had only limited period of one month for study.
The elaborate topic could not be fully covered; hence a complete picture could not
be obtained.
2) Experience: The researcher had limited experience in the field being a student.
3) Response: Some of the respondents failed to express their reactions clearly.
4) Sample Survey: Since the information is being collected from a sample of
population, their view cannot be generalized on large population.
5.4 CONCLUSION
The organizational study enables me to gather knowledge regarding the working of an
organization. The study has brought light to know the organization as a whole.
Different products and efficiency in working for attaining of a common goal.

I have been able to understand the activities of Jagdambay Auto International their
way of working and their way of approaching the customers and the importance of
Advertising, i.e. how beneficial is the advertising for any firm to communicate about
their offers and events to the customers. The results of the research proved to be
encouraging. The respondents were very positive in providing the information about
how Jagdambay Auto International has to go for promotion and why do they go for
Jagdambay Auto International and what measures Jagdambay Auto International has
to take in improving the service to their customers, Though there are many
competitors in the market for this segment, the company Jagdambay Auto
International is doing well by satisfying its customers by having good relationship
with them and.
Bibliography
 BIBLIOGRAPHY
 Bajaj, chetan; tuli, rajnish; srivastava, nidhiv;(2005) ‘retail management’, oxford
university press, new delhi.
 Beverland, M.(2002). Relationship strategies for market entry: The experience of
New Zealand companies in Eastern Europe. Journal of East-West Business, 7(4), 55-
77.
 Evans, Martin;jamal, Ahmed and Foxall, Gordon,(2006) Consumer Behaviour, John
Wiley & Sons, Ltd.PP29;86-87;97-102;119-126;109-110;152-156;38;
 Foxall, Gordon R, (1988), Consumer Behaviour, New Fetter Lane London, Pp.30-
34,45-52,63-65.
 Hanawalt, E.S.,and Rouse, W.B.(2010). Car wars: Factors underlying the success or
failure of new car programs. Systems Engineering, 13 (4), 389-404, Wiley Periodicals
Inc.
 Hemdev, P.A. (2005). Marlboro - A mini case study. The Marketing Review, 5 (1),
73-96.
 Klaus, P. (2015). Measuring Customer Experience. Palgrave Macmillan UK.
 Kothari, C.R, ‘Research Methodology’, (1990) 2nd edition, by new age international
(p) ltd.
 Pagan J., Sethi, S. and Soydemir, G.A. (2001), “TheImpact of Promotion/Advertising
Expenditureson Citrus Sales”, Applied Economic Letters,Vol.8 (10), pp.659-63.
 Smith, R. P. (2002). Marketing communications. Belgrade: Clio.
 Stankovic, Lj.,Djukic, S. &Popovic, A. (2012). Developing socially responsible
marketing. Marketing, 43 (3), 181-189.
 Totten, John C and Block, Martin P,(1994), Analysing Sales Promotion,
2ndEdition,TheDartner Corporation, pp6-13.
 Williams. Terell G (1982), Consumer behaviour, fundamentals and strategies, West
publishing company.
 http://www.marketingteacher.com/Lessons/lesson_consumer_buying_behaviour.htm
 http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename
=html/Output/Published/EmeraldFullTextArticle/Pdf/0070390104.pdf
ANNEXURE
 QUESTIONAIRE

1. Name of the Respondent:

2. Area of the respondent :
3. Age of the respondent :
(a) Below 20
(b) 20 to 29
(c) 30 to 39
(d) 40 to 49
(e) 50 & above

4. Gender :
(a) Male
(b) Female

5. Occupation
(a) Student
(b) Employer
(c) Professional
(d) Others

6. From which source, do you come to know about the product of Jagdambay Auto
International?
(a) Visual media
(b) Print media
(c) Audio media
(d) Displays
(e) Banners
(f) Brochures

7. What is your satisfaction level on dealer Demonstration?

(a) Excellent
(b) Good
 (c) Satisfactory
(d) Poor

8. Rank the following factors on the basis of influence of the purchase decision.
(a) Advertisement
(b) Cash Discount
(c) Gifts
(d) Coupons
(e) premium

9. Has the advertisement message succeeded in building desirability and believability

with respect of the product in your mind?
(a) Yes
(b) No

10. Your satisfaction level on product quality of Jagdambay Auto International?

(a) Excellent
(b) Good
(c) Satisfactory
(d) Poor

11. Do you think that Advertisement and sales promotional activities are need as for
increasing sales volume?
(a) Yes
(b) No

12.. What is your opinion about customer dealer relationship?

(a) Cordial
(b) Very friendly
(c) Hostile
(d) Poor
13. What is your experience with sales promotion activities offered by Jagdambay Auto
International?
(a) Excellent
(b) Good
(c) Satisfactory
(d) Poor

14. Deliver made of dealer

(a) Prompt delivery
(b) Slightly late
(c) Very Late

15. Maximum attention from print media is obtained on advertisement in

(a) First page
(b) Inner page
(c) Last page
 A
SUMMER TRAINING REPORT
ON
SALES PROMOTION ACTIVITIES OF
JAGDAMBAY AUTO INTERNATIONAL

SUBMITTED TO
I.K. GUJRAL PUNJAB TECHNICAL UNIVERSITY,
KAPURTHALA

IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT

FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

Submitted By
Charanjit Singh
University Roll No. 1811822

Department of Business Administration

Guru Nanak Institute of Management and Technology,
Model Town, Ludhiana – 141 002
Session 2019-20
 DECLARATION

I Charanjit Singh student of MBA here by solemnly declare that the project titled
“Sale Promotional Activities of Jagdambay Auto International” is my original as
all the information, facts and figure in this report is based on my own experience and
study during my summer training procedures.

Date:
Place: ………………
 ACKNOWLEDGEMENT

No task is a single man’s task. Various factors, situations and persons integrate to
provide background for accomplishment of tasks. This project is a result of
contribution made by many people.

I deeply acknowledge the role played by all those who provided me their valuable
support in develop of this project.

I am deeply grateful to Mr. Dharminder Singh for his ever willing help and
guidance to complete my project successfully.

I would also like to thank Dr. H.S. Singha (Director, GNIMT) & Dr. (Mrs.)
Sandhya Mehta (Dy. Director of GNIMT) for giving me this opportunity to learn
under project advisor Mrs. Shilpa Miglani (Faculty, GNIMT) who only made sure
that this project goes well at every stage. I am highly indebted for her guidance and
constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.

I also thank to MBA department of my institute and its esteemed faculty for co-
operating with me.
 TABLE OF CONTENT

Chapter No. Chapter Name Page No.

Chapter 1 Introduction 1 – 32

Chapter 2 Review of literature 33 – 37

Chapter 3 Objectives and Research Methodology 38-42

Chapter 4 Data Analysis and Interpretation 43-56

Chapter 5 Findings, Suggestions, Limitations & Conclusion 57-61

Bibliography 62-63

Annexure 64-67