CHAPTER-I

INTRODUCTION

INTRODUCTION
"As we spread wings to expand our capabilities and explore new horizons, the fundamental
focus remains unchanged: seek out the best technology in the world and put it at the service
of our ultimate user: our customer."

Marketing mix
The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing
Association presidential address. However, this was actually a reformulation of an earlier idea by
his associate, James Culliton, who in 1948 described the role of the marketing manager as a
"mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares
his own recipe as he goes along, sometimes adapts a recipe from immediately available
ingredients, and at other times invents new ingredients no one else has tried. A prominent
marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide
use.

Four P's
Elements of the marketing mix are often referred to as the "Four P's", a phrase used since the
1960's

Product - It is a tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible products are
service based like the tourism industry & the hotel industry or codes-based products like
cellphone load and credits. Typical examples of a mass produced tangible object are the
motor car and the disposable razor. A less obvious but ubiquitous mass produced service
is a computer operating system. Packaging also needs to be taken into consideration.
Every product is subject to a life-cycle including a growth phase followed by an eventual
period of decline as the product approaches market saturation. To retain its
competitiveness in the market, product differentiation is required and is one of the
strategies to differentiate a product from its competitors.
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Price The price is the amount a customer pays for the product. The business may
increase or decrease the price of product if other stores have the same product.

Place Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as virtual
stores on the Internet.

Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, personal
selling and sales promotion. A certain amount of crossover occurs when promotion uses
the four principal elements together, which is common in film promotion. Advertising
covers any communication that is paid for, from cinema commercials, radio and Internet
adverts through print media and billboards. Public relations are where the communication
is not directly paid for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is any apparently
informal communication about the product by ordinary individuals, satisfied customers or
people specifically engaged to create word of mouth momentum. Sales staff often plays
an important role in word of mouth and Public Relations (see Product above).

Any organization, before introducing its products or services into the market; conducts a market
survey. The sequence of all 'P's as above is very much important in every stage of product life
cycle Introduction, Growth, Maturity and Decline.

Extended Marketing Mix (3 P's)

More recently, three more Ps have been added to the marketing mix namely People, Process and
Physical Evidence. This marketing mix is known as Extended Marketing Mix.

People: All people involved with consumption of a service are important. For example
workers, management, consumers etc. It also defines the market segmentation, mainly
demographic segmentation. It addresses particular class of people for whom the product
or service is made available.
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Process: Procedure, mechanism and flow of activities by which services are used. Also
the 'Procedure' how the product will reach the end user.

Physical Evidence: The marketing strategy should include effectively communicating

their satisfaction to potential customers.

Four Cs
Robert F. Lauterborn proposed a four Cs classification in 1993. The Four Cs model is more
consumer-oriented and attempts to better fit the movement from mass marketing to niche
marketing. The Product part of the Four Ps model is replaced by Consumer or Consumer
Models, shifting the focus to satisfying the consumer needs. Another C replacement for Product
is Capable. By defining offerings as individual capabilities that when combined and focused to a
specific industry, creates a custom solution rather than pigeon-holing a customer into a product.
Pricing is replaced by Cost reflecting the total cost of ownership. Many factors affect Cost,
including but not limited to the customer's cost to change or implement the new product or
service and the customer's cost for not selecting a competitor's product or service. Placement is
replaced by Convenience. With the rise of internet and hybrid models of purchasing, Place is
becoming less relevant. Convenience takes into account the ease of buying the product, finding
the product, finding information about the product, and several other factors. Finally, the
Promotions feature is replaced by Communication which represents a broader focus than simply
Promotions. Communications can include advertising, public relations, personal selling, viral
advertising, and any form of communication between the firm and the consumer.
Promotion is true that products are manufactured to satisfy the needs of the consumers..
But alone is not enough. Today the responsibility of the manufacturers does not cease with
physical production whatever may be the nature of the product. The present day marketers are
consumer oriented where it is the duty of the manufacturers to know from where, when, how and
what price the products would be available. Successful marketing consists in offering the right
product of the right price of the right place (and time) with right promotion.

In course of time, various activities came into vogue designed particularly to help easy sale
of goods. These activities commonly known as promotional Mix. The marketing communication
Mix also called as the Promotion Mix consists of four major tools.

1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling
Generally marketing communication is undertaken to pass on the message of a
product or sale to the ultimate consumers. Thus, there are three elements in this process.
The purpose of advertising is motivating but to sell something a product or service, the
real objective of advertising is effective communication between producers and consumers.
In other words the ultimate purpose all advertising is Increased awareness list of the
following specific objectives of advertising.
The process of selling is ensured by personal selling supposed by advertising and sales
promotion. Of these three methods personal selling occupies the predominant role mainly
because of the personal element involves. It may be described as a personal source rendered
to the community in connection with marketing of goods.

It is a marketing process with which consumers are personally persuaded to by goods and
services offered by a manufacturer. The most powerful element in the promotional mix is
salesman ship, is not something very new. Even centuraries ago salesman ship was practiced
in Greece and Rome. According to Peter Drucker Cyrus Mecornie was the first man to use
modern technique of selling.
Features:
1. It helps to establish a cordial and abiding relationship between the organization and its
customers.
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2. It is a creative art. It creates wants a new.

3. It is a science, in the sense that One human mind influences another human mind.
4. Personal selling imparts knowledge and technical assistance to the consumers.
Promotion includes all those functions, which have to do with the marketing of a
product all other activities designed to increase and expand the market. But it is clearly
distinguished from advertising and personal selling, through basic aim or all the three is one
and the same viz., to increase the volume of sales.
Sales promotion in a specific sense refers to those sales activities that supplement
both personal selling and advertising and co-ordination ate them and help to make them
effective, such as displays, shows and expositions, demonstrations and other non recurrent
selling efforts not in the ordinary routine.
Evaluation of Sales Promotion:
Two decades ago, there was no agreement among the marketing people that there was
a separate sales promotion function. In those days, promotion was a share- run to
gain a short run good.

The importance of sales promotion is modern marketing has increased mainly an

account of its ability in promoting sales and preparing the ground for future
expansion. The main objective of sales promotion is to attract the prospective buyer
towards the product.

PUBLICITY
The publicity is derived as Any form of commercially significant news about a
product, and institution, a service, or a person published I a space or radio i.e. not paid for by
the sponsor. In short advertisement is paid form of publicity. It is to be noted here that
though the terms ADVERTISING AND Publicity or differences in the field of marketing,
both are used interchangeably.

The media are broadly classified into direct indirect. Direct method of advertising
refers to such methods used by the advertiser with which he could establish a direct contact
with the prospects. Most of the media are indirect in nature EX: Free Publicity, cinema, etc.

Need And Importance the Study:

The increasing competition in business is the reason to pay much more attention
to satisfying customers. It may help the market to notice role of customer satisfaction in
the overall context of product of service development and management.
Customers do not buy services, they buy satisfaction. Hence marketers must be
clear about the satisfaction the customer is seeking and check out whether the customers
are getting the actual satisfaction. This study helps the marketers to take necessary steps
to gain the competitive advantage over the competitors.
The study helps to predict further behavior intentions of the customers such as
intention to re-purchase, intention to increase the usage, intention to recommend the
product and Service to others. Today the customers have wide variety of motorcycles to
chose.
If the satisfaction level of the customer goes down he may switch over to other
brand. Ultimately the company loses its actual customers. This study helps the marketer
to take necessary steps to overcome this problem and retain in the increase of customer
loyalty.

Objectives of the Study:

To study the promotional activities offered by Varun Motor .
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 To identify the impact of sales in the market by using promotional strategies of

Varun Motor.
To study the influence of schemes offered by firm on sales.

To study the customers awareness towards the after sale services offered to him
or her.

Scope of The Study:

The area of study is considered to be in two districts. Those are Hyderabad and Ranga Reddy
districts.
In the present study an attempt has been made to know the actual implementation
of Communication Process as management techniques in general and some other aspects such
as awareness of the workers, effectiveness of the performance appraisal system in particular.
Human resource projections are valid on appraisals. By improving job skills, the
employees have lot of scope for development and prepare themselves for higher
responsibilities.
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METHODOLOGY AND DATA BASE

a) Source of data:
1) Primary Data:
The primary data is collected through questionnaires from the customers.
2) Secondary Data:
The secondary data is collected from the books, journals and internet.
Data collected method:
The data is collected through close ended questionnaire.
b) Sample size:
1. The sample size of the survey (N) is 100.
2. Samples are collected customers of showroom.
3. The age limit of the customers is in between 20-55.
4. The customers will be randomly selected.
c) Tools & Techniques: For analyzing the data statistical tables, percentages, and bardiagrams will be used.
d) Further scope of study; The topic of promotional activities is vast there is further
scope of study for eg; Advertising, sales promotion etc.
e) Kind of research: The research study will be carried out in qualitative and
quantitative research approaches.
The research has to be done in very efficient way; the frame work for collecting
data is called research design.

The statistical involves the study of a few factors in large number of cased. The
contents of research design are
i)
Data collected method.
ii)
Research instrument.
f) Survey approach: The survey will be conducted through close ended questionnaire.
This questionnaire will contain the multiple choice questions; each question will be
given options. The collection of data in survey follows two types they are
i)
Primary data (first hand data).
ii)
Secondary data (used data).
Period Of The Study:
Since so many years Varun Motor Hyderabad has been following the same procedure of
Communication Process for their executives and employees and for the study of my project last
one-year data has collected on Promotional Activates..
Limitations to the study:
Primary data analysis only depended on the respondents.
Process of study/survey is limited only to some customers.
Survey will be conducted for the period of 45 days only.

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CHAPTER-II
INDUSTRIAL PROFILE
& COMAPANY PROFILE

COMPANY PROFILE:

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INTRODUCTION TO VARUN MOTORS PVT.LTD:

VARUN is one of the authorized dealers of marutisuzuki cars. It is one of the biggest showrooms
in twin cities, which is located in Begumpet.Mr. PRABU KISHOR .M started this showroom in
the year of 1993 August 1st. it was started with few employees and very soon it has provided an
opportunity to nearly 200 members. It is now with nearly 200 employees. At present varun as
few authorized outlets in twin cities one is in Begumpet and others are in Kukatpally, Banjara
hills, Balanagar, Malakpet and this branchs as got an authorized service centre.
VARUN is providing all kinds of financial support to the customers by which they are not
required to go to banks to get the loans. The banks executives are available in the showroom to
explain the various schemes to the customers. It makes easy for the customers in decisionmaking process. VARUN has tie-ups with banks such as ICICI, CITI, SBH bank not only banks
but it also tie-ups with financial institutions such as sundaram finance and Mahindra finance.
The service centre are providing good quality after-sales-service for their customers, not only
that VARUN MOTORS can also providing spare parts for Maruti Suzuki cars for their
customers, which have helped them in sales for maruti. They have qualified service engineers
who provide good service to the customers. This has been a major asset to the company. The
companys staff has been very sincere in their work and they respect the customers and they
satisfy the customers by their work.
Because of this good service, VARUN is able to capture the market easily. The loyalty of the
customers of VARUN is very high. The sales of VARUN are 7000 cars per annum. As the sales
of the cars increase there is the possibility of increase in customers for the service centres also.
Therefore they are focusing very well on various promotional strategies to increase the sales and
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also the services

Dealership Achievements:

The management practices at Varun complements the pursuit of perfection. The speed of
adaptation to change and commitment to growth largely boosted the operational efficiency of the
organisation. Varun's Zero Defect approach that has driven it to upgrade its operating systems
continuously earned it the 180 certification and No.1 position in the market. Behind the success
of Varun Group lies the saga of team work, aggressive marketing, dedication, discipline, higher
levels of sensitivity towards customers and excellent HR practices.
Varun's immense focus on service and customer care blitzes the competition whilst its
showrooms and workshops are also top notch. For example, Varun's Maruti showroom in
Visakhapatnam is the largest showroom in India whilst Varun's workshops are equipped with up
to date technology, modern inventory and world class facilities. Our Maruti dealership at
Vijayawada is in an outstanding 3S facility.

Some Of Other Strategies:

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At Varun, the management interacts directly with customers, and communication is seen across
all levels of management. We keep enough stock for customers to touch, feel and see.
Many innovative and flexible finance schemes are tailor made to make the products
easily available to all segments of customers. This is the main reason for highest sales in our
outlets and has also raised the affordability levels of customers. We focus more on service than
mere sales because we believe in getting back what we sow, and even more.
Varun's philosophy of serving the customer at his door step is the main reason behind its
expansion plan of workshops As the Indian economy is a 60% agricultural economy, emphasis is
given to rural marketing, mobile showrooms and rural service centres with spares parts back up.
Varun also has driving schools. All services are under one roof, for ex: RTA, Insurance, extended
warranty, accessories, exchange and true value departments.

Varun Group- Service Statistics:

We are currently servicing 18,000 Bajaj's range of 2- wheeler and 3- wheeler vehicles per month
and 5700 Maruti cars per month. Varun Motors has serviced 10, 00,000 Bajaj vehicles and 2,
00,000 Maruti cars till date.

Seamless services across nation:

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The customer can get all the services like buying new policy, effecting renewals, endorsements
and claims at any Maruti authorized dealer outlet across the dealer network spread all over India.
The services cover right from policy issuance to emergency assistance to post accident repairs
and claim settlement
.
Faster & Fair Claim settlement:

With Maruti Insurance there are no hassles like Insurance Co. is not giving fair claim settlement.
Whatever is payable by standards is admissible by Insurance Co. The customer is not forced to
bear the undue differential cost of repair/ replacement.

Easy settlement of claims with no follow-ups:

There would not be any need of the customer's personal involvement with the surveyor or
Insurance company, nor would the customer have to worry about salvage disposal in the process
of settlement of claims. All this will be taken care of by the dealer.

Repairs at Authorized Dealer workshops:

15

After an accident, the damaged vehicles are repaired at the Authorized Dealer workshops that are
equipped with the best facilities and infrastructure. This would lead to quality repairs with Maruti
Genuine spare parts and trained mechanics with Maruti Insurance the customer need not
compromise on the quality of repairs and thus health of the car, by going to smaller roadside
workshops.

Dealer Assisted towing facility:

Towing assistance would be provided, for getting the vehicle to the dealer workshop, in case of
accidents where the vehicle has been rendered immobile. This facility is available free of cost up
to Rs 1500/- If the cost incurred for towing is more than Rs1500/- then the excess amount will be
borne by the customer. This can be increased should the insured prefer so by paying extra
premium at the time of policy issuance.

Easy transfer of No claim bonus:

No matter which Insurance company the customers' vehicle was previously insured with, his no
claim bonus earned on previous policy will be easily transferred to Maruti Insurance policy that a
customer is buying at the time of renewal.

Instant Policy issuance:

No longer would the customer need to wait for the policy document, which sometimes takes

16

months to get delivered from the Insurance company. With MI, the policy is issued through
Internet and it is instantaneous.
Faster refunds and cancellations & Policy Verification:

Maruti Insurance is completely driven by IT systems and thus it is possible to have a faster
response time for cancellations and refunds compared to other Insurance companies. At the time
of payment of claims also, the policy and premium credit verification is instant. This adds to both
Dealer and Customer comfort.

Easy settlement of claims with no follow-ups:

There would not be any need of the customer's personal involvement with the surveyor
or Insurance company, nor would the customer have to worry about salvage disposal in
the process of settlement of claims. All this will be taken care of by the dealer.

Repairs at Authorized Dealer workshops:

After an accident, the damaged vehicles are repaired at the Authorized Dealer
workshops that are equipped with the best facilities and infrastructure. This would lead
to quality repairs with Maruti Genuine spare parts and trained mechanics with Maruti
Insurance the customer need not compromise on the quality of repairs and thus health
of the car, by going to smaller roadside workshops.

Dealer Assisted towing facility:

Towing assistance would be provided, for getting the vehicle to the dealer workshop, in

17

case of accidents where the vehicle has been rendered immobile. This facility
is available free of cost up to Rs 1500/- If the cost incurred for towing is more than
Rs1500/- then the excess amount will be borne by the customer. This can be increased
should the insured prefer so by paying extra premium at the time of policy issuance.

Easy transfer of No claim bonus:

No matter which Insurance company the customers' vehicle was previously insured
with, his no claim bonus earned on previous policy will be easily transferred to Maruti
Insurance policy that a customer is buying at the time of renewal.

Instant Policy issuance:

No longer would the customer need to wait for the policy document, which sometimes
takes months to get delivered from the Insurance company. With MI, the policy is
issued through Internet and it is instantaneous.

Faster refunds and cancellations & Policy Verification:

Maruti Insurance is completely driven by IT systems and thus it is possible to have a

faster response time for cancellations and refunds compared to other Insurance

18

companies. At the time of payment of claims also, the policy and premium credit
verification is instant. This adds to both Dealer and Customer comfort.

Reference: http://seminarprojects.com/Thread-an-internship-programme-in-varunmaruti-suzuki#ixzz4BqTEoRRT

Business Verticals of the Group

Automobile

Established in 1950s.

20% Year on year growth for the last 7 years.

One of the largest Automobile dealers in the country.

Rs. 1500 cr annual turnover.

Auto-Financing

Established in 1980s.

40% YOY growth in the last 5 years.

Business penetration in to the remote corners of AP.

Rs. 100 annual disbursement.

Infrastructure

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Established in 1980s.

Built over 1.3 million SFT in the last 5 years.

Backward integration to meet infrastructure needs of Group's automobile dealerships.

Hospitality & Entertainment

Established in 1980s.

Built First 5-star hotel - Novotel Varun Beach in Vizag, which was awarded as THE BEST 5STAR HOTEL PROJECT - PAN INDIA (2011) - by Zee Businesss & RICS.

Opened First 6-screen multiplex in Vizag.

Credentials & Achievements

Over 60 yrs in the Automobile industry resulted in creation of Trust, Goodwill & Reputation.

High rate of satisfaction from all touch points - i.e., principals, customers, bankers, employees,
and Govt bodies.

Varun Motors was awarded Maruti PLATINUM award Eight times consecutively for the past 10
years in Balanced Scorecard (Platinum award is the highest rated award in Maruti)

Adjudged India's No.1 Maruti dealer in Balanced Scorecard in 2003-2004.

Committed Customer Service got us the ISO 9001 - 2008 Certification.

Govt of AP awarded "Best dealer award for payment of tax (VAT) & Compliance to AP VAT
provisions in "2001-02 and 2006-07".

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Received "Bajaj Star dealer" award many times from Bajaj Auto Limited.

One of the first Bajaj dealers to start in house finance and exchange facility.

Best Emerging JCB dealer for FY 09-10 in the first year of operation.

Best dealer award for "Highest key account generation" by Mahindra Navistar in FY 2011-12.

Novotel Varun Beach awarded "Best Hotel Project Pan India" by Zee Business & RICS in 2011.

Novotel Varun Beach awarded "Best New Hotel" by HISCA in 2012.

Many more awards for Sales Satisfaction and Customer Satisfaction over the years.

PROMOTERS OF THE GROUP

Mr. V Prabhu Kishore

Chairman
Varun Group

Mr. Prabhu Kishore is a visionary, entrepreneur and a successful businessman.

He is the Chairman of Varun Group which is known across Andhra Pradesh and
Telangana through their flagship company, Varun Motors Pvt Ltd

Mr. Prabhu Kishore started his business career at the age of 19 yrs, taking care of his
family business of Automobile Dealerships in Vijayawada, M/S. Padmaja Commercial
21

Corporation and soon started his own Business ventures - Lakshmi Finance and Varsha
Builders in 1980s. In 1992, through the establishment of Varun Motors in Visakhapatnam
he spread his automobile dealership business throughout Andhra Pradesh and Telangana.

Today, Varun Motors is a household name in Andhra Pradesh and Telangana, serving
millions of customers since its inception, representing automobile brands such as Bajaj
Auto, Maruti Suzuki, JCB and Bharat Benz. Varun Group, under the leadership of Mr.
Prabhu Kishore is fast emerging as the leading automobile business in India.

Mr. Prabhu Kishore, with his wife Mrs. Lakshmi Kishore and son, Mr. Varun Dev and
daughter Varsha live in Vizag.

Mrs. Lakshmi Kishore

Mrs. Lakshmi Kishore hails from a business family in Vijayawada, Andhra Pradesh.

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Educated with a degree in English Literature, she has been a pillar of support to the Varun
Group.

Balancing the family responsibility with hands on approach to various aspects of the
Group business, Mrs. Lakshmi Kishore is a business woman par excellence.

Mr. Varun Dev

Mr. Varun Dev, holds a Masters degree in Engineering from Warwick University in UK
and has worked with Suzuki in Hungary.

He joined the family business in 2007 and is currently the Managing Director of the
Automobile Division i.e., Maruti, Bajaj, JCB, and Daimler dealerships of the Group.

Ms. Varsha

Ms. Varsha holds an MBA in Hospitality degree from Les Roches School of Hotel
Management, Switzerland and a BscHons Management degree from The University of
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Manchester, United Kingdom.

She is the Owners Representative for the Hospitality Sector in the Group. With a keen
eye for Interior Design, Marketing, Operations and New Projects, she pursues various
aspects in the Hospitality & Entertainment Vertical.

VARUN GROUP - AWARDS

Over 62 yrs in the Automobile industry resulted in creation of Trust, Goodwill &
Reputation.

High rate of satisfaction from all touch points - i.e., principals, customers, bankers,
employees, and Govt bodies.

Varun Motors was awarded Maruti PLATINUM award Eleven times in Balanced
Scorecard (Platinum award is the highest rated award in Maruti)

Adjudged India's No.1 Maruti dealer in Balanced Scorecard in 2003-2004.

All India No 1 Maruti dealer for overall excellence "Champions of Champions" in 201314

All India 1st Runner up Maruti dealer for overall excellence "Champions of
Champions" in 2014-15

24

Govt of AP awarded "Best dealer award for payment of tax (VAT) & Compliance to
AP VAT provisions" in "2001-02 and 2006-07".

Received "Bajaj Star dealer" award many times from Bajaj Auto Limited.

One of the first Bajaj dealers to start in house finance and exchange facility.

Best Emerging JCB dealer for FY 09-10 in the first year of operation.

Novotel Varun Beach awarded "Best Hotel Project Pan India"by Zee Business & RICS
in 2011.

Novotel Varun Beach awarded "Best New Hotel" by HICSA in 2012.

Novotel Varun Beach received DDP Trailblazer Award, Best Meetings & Conference
Hotel, Best Hospitality Partner in 2014 - 15

Novotel Varun Beach is classified as "5 STAR Deluxe Hotel" in 2014

Many more awards for Sales Satisfaction and Customer Satisfaction over the years.

Received "Best Employer of the Year" (in the Area of "Corporate Social
Responsibility") Award for the year 2013 by Labour Department, Govt of AP.

Varun Bharat Benz sold 108 Trucks in Jan2015 and stood No.1 among all India dealers

Varun Bharat Benz received Best Dealer for 24X7 RSA Achieved Recovery in < 24 Hrs
(putting the vehicle back on road) award 2014
25

Varun JCB Best dealer Overall performance in Parts (All India) Award in 2014

CHAPTER-III
REVIEW OF LITERATURE

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The Marketing Mix

(The 4 P's of Marketing)
The major marketing management decisions can be classified in one of the following four
categories:

Product

Price

Place (distribution)

Promotion

These variables are known as the marketing mix or the 4 P's of marketing. They are the
variables that marketing managers can control in order to best satisfy customers in the target
market. The marketing mix is portrayed in the following diagram:
The firm attempts to generate a positive response in the target market by blending these four
marketing mix variables in an optimal manner.

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Product
The product is the physical product or service offered to the consumer. In the case of physical
products, it also refers to any services or conveniences that are part of the offering.
Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.
Price
Pricing decisions should take into account profit margins and the probable pricing response of
competitors. Pricing includes not only the list price, but also discounts, financing, and other
options such as leasing.

Place
Place (or placement) decisions are those associated with channels of distribution that serve as the
means for getting the product to the target customers. The distribution system performs
transactional, logistical, and facilitating functions.
Distribution decisions include market coverage, channel member selection, logistics, and levels
of service.
Promotion
Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis should be
performed when making promotion decisions. It is useful to know the value of a customer in
order to determine whether additional customers are worth the cost of acquiring them.
Promotion decisions involve advertising, public relations, media types, etc.
A Summary Table of the Marketing Mix

28

The following table summarizes the marketing mix decisions, including a list of some of the
aspects of each of the 4Ps.
Summary of Marketing Mix Decisions
Product

Price

Place

Promotion

Functionality

List price

Channel members

Advertising

Appearance

Discounts

Channel motivation

Personal selling

Quality

Allowances

Market coverage

Public relations

Packaging

Financing

Locations

Message

Brand

Leasing options

Logistics

Media

Service levels

Budget

Warranty
Service/Support

The increasing competition in business to pay much more attention to satisfying customers. It
may help the marketer to notice role of customer satisfaction in the overall context of product of
service development and management.
Customers do not buy services, they bys satisfaction. Hence marketers must be clear about the
satisfaction the customer is seeking and check out whether the customer are getting the actual
satisfaction.
This study helps the marketers to take necessary steps to gain the competitive advantage over the
competitors.
The study helps to predict further behavior intentions of the customers such as intention to Repurchase, intention to increase the usage, intention to recommend the product and service to
others. Today the customers have wide variety of motorcycles to chose. If the satisfaction level
of the customer goes down he may switchover to other brand. Ultimately the company loses its
29

actual customers. This study helps the marketer to take necessary steps to overcome this problem
and retain its actual customers.
1. Can be major source of revenue, although it often receives too little management
attention.
2. Is essential for achieving customer satisfaction and good long-term relationship-as
identified by a number of researches.
3. Can provide a competitive advantage.
4. Play a role in increasing the success rate of new products introduced.
5. Needs to be fully evaluated during new product development, as good product design
can make customer support more efficient and cost-effective. Increased competition
within many industries has led to increased attention on customer service.

Various studies indicate that upset customers may have big effect on sales of company. Therefore
all dealers try to put all their attention to keep their customers satisfied and fulfill their needs and
wants as much as possible. One of the strong tools which help all companies in this matter is
providing best after-sales service.

Market: The set of all actual and potential buyers of a product of a service.
Marketing:
In todays competitive world any organization to run successfully three factors plays an
important role are
1. Finance.
2. Human resources.
3. Marketing.
Along with the above mentioned the other three factors which plays an important role to
achieve the organizational goals and objectives in the competitive market they are
1. Innovative technology.
2. Quality.
3. Price.
Because of globalization, privatization and liberalization the number of competitors
are increasing at a constant rate as a result of which consumers are preferring products
which are of high quality, technology and at a reasonable price.
Though the company is producing high quality products at a reasonable price to be
success in the competitive market the company should take promotional activities and
marketing tools and techniques to achieve its mission and vision.
30

Marketing is not just telling and selling but in the new sense satisfying customer
needs marketing is a comprehensive term and it includes all resources and a set of
activities necessary to direct and facilitate and flow of goods and services from producer
to consumer in the process of distribution.

Marketing definition.
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging products and
value with others.
ELEMENTS OF MODERN MARKETING SYSTEM:

Company
(Marketer
)

Suppliers

Competito
rs

Marketing
Intermediari
es

End users

The art and science of choosing target customers and building profitable relationships
with them.
Delivering and communicating superior customer value. Thus marketing
management involves managing customer relationships.
THE MARKETING CONCEPT:
The marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions
better than competitors do. Under the marketing concept, customer focus and valve are
the paths to sales and profits.
Market

Customer

Integrated

Profits through

Needs

Marketing

Customer satisfaction

31

DEVELOPING THE MARKETING MIX:

Marketing Mix:
The set of controllable tactical marketing tools that he firm blends to provide the
response it wants in the target market. The marketing mix consists of everything the firm
can do to influence the demand for its product. It can be collected into four groups of
variables known as FORUPS.

1) PRODUCT
2) PRICE
3) PLACE
4) PROMOTION
Product:
Product means the goods-and services combination the company offers to the target
market.
Price:
Price is the amount of money customers have to pay to obtain product.
Place:
Place includes company activities that make the product available to a target consumers.
Promotion:
Promotion means the activities taken by the company to communicate the merits of the
product and promote its product to the target market.

32

ACTIVITIES UNDER THE 4P ARE OF THE MARKETING MIX:

1) Product:
Managing the product includes planning and developing the right products and
services to be marketed by the company policy strategy guidelines are needed for
changing the existing products and adding new ones.
A product activity includes policies and procedures relating to:
a. Product variety, quality, features, design, brand name, packaging, size, services,
warranties and returns.
b. Markets to sell-whom, where and in what quantity.
c. New product policy, R&D programs.
2) Pricing activities:
Include policies and procedures relating to
1. List prices.
2. Discounts.
3. Allowances.
4. Payment period.
5. Credit terms.
Generally markets consider the following factors while seeking price: target customers, cost,
competition, social responsibility.
3) Promotional activities:
Includes policies and procedures relating to.
Advertising: media mix, budget, allocation and programmes.
Personal setting: objectives, quality of sales force, cost level, level of motivation.
Promotion: special setting plans/ devices directed at or through the trade forms of
these devices are consumer promotions and trade opinions.
Publicity and public relations.
4) Place/distribution activities: Basically place of distribution activities are to transfer
ownership to consumer and to place products, services, idea at the right time and place.
Distribution is made up of two components
1) Physical distribution and
2) Channels of distribution

33

i)

Physical distribution: Activities involved in moving products or services from

producer to consumer are.

Transportation, warehousing and storage, order processing and inventory control.
ii)
Channels of distribution;: These are the routes taken by good from producer

consumer it includes.
Channel design
Location of outlets
Channel remuneration
Dealer-principal relations

An effective marketing program blends all of the marketing-mix elements into a

coordinated program designed to achieve companys marketing objectives by delivering value to
consumer. The marketing mix constitutes the companys tactical tool kit for establishing string
positioning in target markets. The four Ps concept taken the sellers view of the market, not the
buyers view. From the users view point the four Ps might be better described as the four Cs.
FOUR PS

FOUR CS

Product

customer solution

Price

customer cost

Place

convenience

Promotion

communication

34

Thus marketers see themselves as selling products; customers see themselves as buying
value of solutions to their value of solutions to their problems. The customer is interested in more
than just the price they are interested in the total cost of obtaining, using and disposing of a
product. Customers want the product and service to be as conveniently available as possible,
marketers think about the four Cs first and build the four Ps platform.
COMOMIC ENVIROMENT:
Markets require buying power as well as people. The economic environment consists of
factors that affect consumer purchasing power and spending patterns.
The factors effecting consumer behavior are:
1) Cultural factors
2) Social factors
3) Personal factors
4) Psychological factors
1) Cultural factors:
35

i)

Cultural is the set of basic values, perceptions wants and behavior learned by a
member of society from family and other important institutions.

ii)

Sub-culture a group of people with shared value sustains based on common life
experiences sub cultures includes nationalities, religion.

iii)

Social classes relatively permanent and ordered divisions in a society whose

members share similar values, interests and behaviors. Social class is measured by
a combination of factors like income, occupation, education, wealth etc. types are
upper class, upper middle, lower class, working class etc.

2) Social factors:
i)

Groups: Two or more people who interact to accomplish individual of mutual

goods. The broad types are groups, reference groups, opinion leaders in the
reference group are persons who because of special skills, knowledge, personality,
exerts influence of others.

ii)

Family: marketers are interested in the roles and influence of the husband, wife
and children on the purchase of different products and services. Five fingers of the
hand relating to five members of family influencing the decision of purchase.

iii)

Roles and Status: A person role differs from group to group. A role consists of the
activities people are expected to perform according to the persons around them.
Each role carries a status reflecting the general esteem given to it by society.
People often choose products that show their status in the society.

3) Personal factors:
i)

Age and life cycle stage: tastes in food, clothes, furniture etc care often age
related. Buying is also shaped by the stage of family life cycle the stages through
which families might pass as they mature over time.

ii)

Occupation; A persons occupation affects the good and services bought. Blue
collar workers tend to buy more rugged clothes where as white collar workers buy

36

more suits. A company cans ever specialty in making products needed by a given
occupation.
iii)

Economic situation: Marketers of income sensitive goods, look at the consumer

personal income savings and interest rates. If the economic indicators point to a
recession, marketers can take steps to redesign reposition and re-price their
products closely.

iv)

Life style: Life style is a persons pattern of living understanding these forces
involves measuring consumers activities, interests and opinions.

v)

Personality and self concept: It refers to the unique psychological characteristics

that lead to relatively consistent and tasting response to ones own environment,
Personality is usually described in terms of traits such as self-confidence,
dominance, sociability, autonomy, defensiveness, adaptability and aggressiveness.

4) Psychological factors:
i)

Motivation: A motive is a need that is sufficient pressing to direct the person to

seek satisfaction. Psychological have developed theories of human motivation for
consumer analysis and marketing.

ii)

Perceptions: It is the process by which people select, organize, and intercept

information to form a meaningful picture of the world. Two people with same
motivation and is the same situation may act quite differently because they
perceive the situation differently.

iii)

Learning: When people act, they learn. Learning describes chares In an individual
behavior arising from experience. Learning theorists say that most human
behavior is learned learning occurs through the interplay of drives, stimuli, uses,
responses and reinforcement.
Beliefs and Attitudes: Through doing and learning people acquire beliefs

nd

attitude. These in turn influence their buying behavior. A belief is a descriptive

37

thought that a person has about something; as attitude describes a persons

relatively consistent evaluations, feelings and tendencies toward an object of
India.

38

There are four main aspects of a promotional mix. These are:

Advertising - Any paid presentation and promotion of ideas, goods, or services by an

identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures
and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads,
and emails.

Personal Selling - A process of helping and persuading one or more prospects to purchase
a good or service or to act on any idea through the use of an oral presentation. Examples:
39

Sales presentations, sales meetings, sales training and incentive programs for
intermediary salespeople, samples, and telemarketing. Can be face-to-face or via
telephone.

Sales promotion - Media and non-media marketing communication are employed for a
pre-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples: Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions.

Public relations - Paid intimate stimulation of supply for a product, service, or business
unit by planting significant news about it or a favorable presentation of it in the media.
Examples: Newspaper and magazine articles/reports, TVs and radio presentations,
charitable contributions, speeches, issue advertising, and seminars.

Corporate image - The Image of an organization is a crucial point in marketing. If the

reputation of a company is bad, consumers are not less willing to buy a product from this
company as they would have been, if the company had a good image.

Direct Marketing is often listed as a the fifth part of the marketing mix

Exhibitions - are try-outs. You make your product, and let potential buyers try the
product, this way; you know directly what people see in your product. The downside,
your competitor can see exactly what you are doing.

Customer Satisfaction:
The extent to which products perceived performance matches a buyers expectation.
Consumer satisfaction depends on the products perceived performance, relative to a
buyers expectations. If the products performance falls short of expectations, the customer is
dissatisfied.
40

If performance exceeds expectations, the customer is highly satisfies of delighted.

Satisfied customers repeat purchases and tell others about their good experiences with the
product. The key is to match customer expectations with company performance.
The customer centered firm seeks to deliver high customer satisfaction relative to
competitors. A company can always increase customer satisfaction by lowering its price of
increasing its services. But this may result in lower profits. The purpose of marketing is to
generate customer value profitably.
Customer loyalty:
Highly satisfied customers produce several benefits for the company. Satisfied customers
are lesser price sensitive. They talk favorably to others, about the company and its products and
remain for longer period. Customer delight created an emotional relationship with a product of
service. This crated high customer loyalty.

41

CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION

42

QUESTIONNAIRE AND INTERPRETATION WITH GRAPHS:

1) Income per month
a) Less than 6000K

b) 6001K -10000K

c) 10001K-15000K

d) Above 15000K

Less than 6000K

6001K -10000K

10001K-15000K

Above 15000K

24

42

29

5%
29%

24%

Less than 6000K

6001K -10000K
10001K-15000K
Above 15000K

42%

Interpretation:
By the above pie chart we know that the customers have an income per month , 10,000 to
20,000 is 42%, above 15000 are 29%, between 6,000 and 10,000 are 24% and less than 6000 are
43

5%.

2) Are they are aware of retail products?

a) YES

b) NO
YES

NO

97

YES
NO

Interpretation:

By the above pie-chart we know that 97% of the respondents are aware of retail products and 3%
are not aware of retail products. So the study is concentrated on both the type of respondents.

44

3. Did you hear about Varun Motor?

a) YES

b) NO

YES

NO

95

5%

YES
NO

95%

Interpretation:
By this pie-chart we can understand most of the respondents know about the retail
products of Varun Motor.
45

4. Are you using Varun Products?

a) YES

b) NO
YES

NO

67

33

33%
YES
NO
67%

Interpretation:
By the above pie chart we know that 67% respondents are using Varun Motor
Products and rest of the 33% respondents are not using Heritage retail Products.
So we have to concentrate more on those 33% as well as 67% respondents.

46

5 YES, What is your rating factor for varun Products which you will give?
RATING FACTOR GOOD

FAIR

BAD
Quality

62

46

20

Price

55

12

Longevity
Others (_)

Rating factor for varun products

70
60
50

QUALITY
PRICE

40

LONGEVITY

30
20
10
0

GOOD

FAIR

BAD

47

Interpretation:
By the above bar-chart we know that out of 100 respondents 67% have used the Varun Motor
Products. Out of 67% respondents 62% people rated good quality, 4% respondents rated fair
quality and remaining 1% respondents rated bad quality.
Out of 67% respondents 46% respondents rated good price, 20% respondents rated fair
quality and remaining 1% respondents rated bad price.
Out of 67% respondents 55%respondents rated good longevity and 12% respondents
rated fair longevity.
6. If YES, how do you heard about Varun Products
a) Electronic media

b) Print media

c) Sales person

d) others (

Electronic media

Print media

Sales person

others

17

51

16

11

48

12%

18%
ELECTRONICMEDIA

17%

PRINTMEDIA
SALESPERSON
OTHERS
54%

Interpretation:
By this pie-chart we can analyze that most of response came from news paper promotion is 54%,
Through electronic media is 18%, sales persons is 17% and rest of them by others, by this we
known that paper ads are best than others.

7) What way you think promotion of Varun Motor Products Should be done
a) Offers

b) Advertisement

c) Free Service

d) others (

Offers

Advertisement

Advertisement

Free Service

Free service and offers

All the
above

And offers

49

10

17

42

what do you think promotions should be done

5%
12%
10%

6% 8%
17%

offer

advertisement

free service

offers &
advertisement

advertisement &
free service

offers & free service

allthe above
42%

Interpretation:
By this pie-chart we know that the promotions should be done by free service and advertisement.

50

PRODUCT PERFORMANCE Varun Motor

8. Which following future made you to buy l Products?
1) Quality 2) Price

3) Brand Name

4) Free service

SL.NO

OPTIONS

RESPONSE`

Quality

48

Price

13

Brand name

27

Free service

12

Source: customer survey (primary data)

RESPONSE`

Interpretation:
From the above analysis we conclude that among 100 customers 48% of the
customers buy Varun Motor on Quality, 13% basing on price, 27% basing on brand
and 12% on free service offer.

51

9. Since how long you have been using H Varun Motor .

1) <1 year

SL.N

2) 1 to 3 years

3) Above 3 years

OPTIONS

RESPONSE`

< 1 year

17

1 to 3 years

52

Above 3 years

31

Source: customer survey (primary data)

PERIOD OF USING Heritage retail Products

31

17
52

Interpretation:
From the above analysis out of 100 customers when a question was raised
regarding the duration period they have been using the Varun Motor Products. The
responded was less that 1 year is 17%, between 1-3 years 52% and above 3 years
31%.

52

10. Are you satisfied with the performance of your Varun Motor Products?
1) Completely satisfied
SL.N

2) Satisfied

3) Not satisfied

OPTIONS

RESPONSE`

Completely satisfied

69

Satisfied

29

Not satisfied

Source: customer survey (primary data)

Satisfaction of the attributes provided by Heritage retail Products

29

2
69

Interpretation;
From the above analysis we conclude that 69%of the cistomers are completely satisfied,
29% are just satisfied and 2% of the respondents are not satisfied .

53

11. How comfortable are you while using Varun Motor

1) Good
SL.N

2) Average

3) Poor

OPTIONS

RESPONSE`

Good

95

Average

Poor

Source: customer survey (primary data)

Comfortness while driving

5
95

Interpretation:
From the above analysis wee can conclude that out of 100 customers, 95% of the customers
felt good, 5% average ragarding the customers.

54

2) Did you experience any problem with Varun Motor Products?

1) Yes
SL.N

2) No

OPTIONS

RESPONSE`

Yes

17

No

83

Source: customer survey (primary data)

Problems with Heritage retail Products

17
83

Interpretation;
From the above analysis we conclude that out of 100 respondents 17% of the respondents
experienced problems with their phone and 83% of the respondents said that they have not
experienced any problem with the Varun Motor .

55

3) Would you like to change your Varun Motor

1) Yes
SL.N

2) No

OPTIONS

RESPONSE`

No

98

Yes

Source: customer survey (primary data)

Changing Heritage retail Products

RESPONSE`

Interpretation:
From the above analysis we conclude that 2% of the customers wanted to change their
Varun Motor Products and 98% of the customers said not regarding the idea to change their
choice from Varun Motor to others competitors .

56

Service appointment
4) Is the appointment system useful to you?
1) Completely 2) Useful
SL.N

3) Not useful

OPTIONS

RESPONSE`

Completely

25

Useful

73

Not useful

Source: customer survey (primary data)

Appointment system

2
25
73

Interpretation;
Among the 100 customers when a question was raised regarding the usefulness of service
appointment system 25% of the respondent said completely useful, 73% said useful and 2% said
not useful.

57

5) Are you satisfied with the courtesy and friendliness of service personal?
1) Completely satisfied
SL.N

2) Satisfied 3) Not satisfied

OPTIONS

RESPONSE`

Completely satisfied

36

Satisfied

54

Not satisfied

10

Source: customer survey (primary data)

Courtesy and friendliness of service personal

10

36

54

Interpretation:
From the above analysis we conclude that 36% of the customers are completely satisfied,
54% of the customers are satisfied and 10% of the customers are not satisfied regarding the
courtesy and friendliness of the service personnel.

58

6) Are you satisfied with infrastructure and customer lounge facilities?

1) Completely satisfied
SL.N

2) Satisfied 3) Not satisfied

OPTIONS

RESPONSE`

Completely satisfied

44

Satisfied

54

Not satisfied

Source: customer survey (primary data)

Infrastructure and customer lounge

2
54

44

Interpretation:
From the above analysis we conclude that among 100 respondents 44% of the customers
are completely satisfied, 54% of the customers are satisfied and 2% of the customers are not
satisfied regarding the infrastructure and customer lounge facilities.

59

7) Are you shuffled from one sales person to another at the time of purchase?
1) Yes

SL.N

2) No

OPTIONS

RESPONSE`

Yes

No

100

Source: customer survey (primary data)

Shuffled form one sales person to another

100

Interpretation:
From the above analysis we conclude that 100% of the customers responded that they
have not been shuffled one sales person to another at the time of purchase.

60

8) Do you get the information from service advisor on the services to be

performed?
1) Completely 2) Adequately 3) Partially
SL.N

OPTIONS

RESPONSE`

Completely

37

Adequately

54

Partially

Source: customer survey (primary data)

Information from service advisor

Interpretation:
From the above analysis we come to conclusion that 37% of the customers are getting
complete information from service advisor and 54% are getting adequately and 9% of the
customers are getting partial information regarding the services to be performed.

61

9) Are you getting clear explanation of the service performed and charges at the
time of delivery?
1) Yes all the time 2) Mostly 3) Sometime
SL.N

OPTIONS

RESPONSE`

Yes all the time

29

Mostly

56

Sometime

15

Source: customer survey (primary data)

Explanation from the service person

Interpretation:
From the above analysis we conclude that out of 100 customers 29% of the customers
said all the time they are getting cleared explanation and 56% said mostly and 15% of the
customers are getting only sometime about the services performed and charges at the time of
delivery.

62

CHAPTER-V

FINDINGS
SUGGESTIONS
CONCLUSION
QUESTIONNAIRE
BIBILIOGRAPHY

63

FINDINGS
The company is advertisement is fair and is reaching to all people.
The advertisement is difficult to understand.
Varun Motor Products is not concentrating on the promotional activities for the customers
and for the retailers.
The company is not concentrating on other types of advertising media.
The package design is not communicative and eye catching, so package design and color
have to blend harmoniously to make the package communication effective.
The company is not conducting road shows so as to get awareness in the public about the
product and services.
Improve the marketing personnel and they should give full knowledge to the customers
and retailers.

Varun Motor Products must improve their personnel selling direct contacting customers
to give awareness of their products.

64

SUGGESTIONS
The company is not concentrating on other types of advertising media.
The package design should be communicative and eye catching, so package design and
color have to blend harmoniously to make the package communication effective.
Network (Market) should be expanding to rural villages.
Reduce the rates to increase the market share.
The company should conduct road shows so as to get awareness in the public about the
product and services.
Improve the marketing personnel and they should give full knowledge to the customers
and retailers.

The offers should be fairer and should also necessary to bring new models with
fascinating offers.

It will help full in Increasing of Sales if The Varun Motor Products brings cards for the
different groups of people such as, Students, Employees, Girls etc.,

65

CONCLUSION

From project conclude that promotion of any service can be successfully executed by
creating awareness through word of mouth and by maintaining the service according to
Advertising and Sales Promotional Activities.

66

BIBILIOGRAPHY
S.No. AUTHOR NAME

REFERED BOOKS

Principles of Marketing 11th Edition

1. PHILLIP KOTLER

Prentice Hall India.

2. PHILLIP KOTLAR

Marketing Management Millennium

Edition.Prentice Hall India

3. V.S.RAMASWAMY &
NAMAKUMARI

4. RICHARD R STILL

Marketing Management -7th Edition

Millennium India Ltd.

Sales Management -5th Edition

Prentice Hall India.

5. G.C.BERI

Marketing Research -6th Edition

Tata McGraw Hill Co.Ltd.
67

6. LUCK DAVID &

ROBIN RONALD

Marketing Research -7th Edition

Prentice Hall India.

WEB SITES
www.google.com
www. Varun Motor .com
www.customersopt.org

68