CHAPTER – 1

1

INTRODUCTION ABOUT THE STUDY

There are more than 125 Fortune 500 companies in India. India is an emerging

global manufacturing hub for low cost cars.

Changing demographics, rising disposable income and entry of several new players

has expanded the domestic market for passenger vehicles.

The industry turnover is estimated to reach a level of US $155 billion by 2016.

Looking into the eastern India, Vijayawada has emerged as a key state with

minerals and metals based metal based industry with the total Gross State

Domestic Product (GSDP) about $40.6 billion in 2013-14.

As an economic-centre and capital of Andhra Pradesh with tremendous potential

many foreign companies are trying to grasp the opportunity by placing their

different product targeting different income group.

This project was done to access the brand sales of one of the well known German

brand ‘VOLKSWAGEN’ and to analyse the need of degree of brand promotion in

Vijayawada market.

With the help of questionnaire targeting all potential sector of society a survey

was done to measure sales level and satisfaction level of customer with their

present car and many more aspects.

2

Introduction about Volkswagen Group

Type Pubic Company – Aktiengesellschaft

Industry Automotive

Founded German

Headquarters Wolfsburg, Germany

Number of locations 61 production plants in countries

Area served Worldwide

Key people Ferdinand k Piech (Chairman of the supervisory board)

Martin Winterkorn (CEO and Chairman management)

Product Automobiles, commercial vehicle, engines

Production output 6,054,829 units for sale in 153 countries (2009)

Services financial services

Revenue €177.2 billion

Total equity €37.43 billion

Employees 368,500 (end 2009)

Divisions Automotive

Vehicle brand companies:

AUDI AG,

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BENTEY AUTOMOBILES LIMITED,

UGATTI AUTOMOBILES,

LAMBORGHINI,

SEAT,

SKODA AUTO,

VOLKSWAGEN PASSENGER CAR,

VOLKSWAGEN COMMERCIAL VEHICLES,

SCANIA AB

FIANANCIAL SERVICES:

VOLKSWAGEN FINANCIAL SERVICES AG,

VOLKSWAGEN EASING Gmbh

OTHERS: LOGISTCS, MARINES, INTERNATIONAL COLABORATIONS

Website www.volkswagenag.com

4

INTRODUCTION

Sales Promotion

Sales promotion refers to the short-term incentives to encourage sales of a product or

service. It consists of a diverse collection of incentive tools, mostly short-term, designed to

stimulate quicker and greater purchase of products or services by consumers.

Sales Promotion Tools

Many tools can be used to accomplish sales promotion objectives. Descriptions of the

main promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows;

1. Samples:

They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try

the product without cost or at a lower cost in the hope that they will buy the product. Samples

may be free or discounted.

2. Coupons:

Coupons are certificates that give buyers a saving when they purchase a specified product.

Coupons can be mailed, placed in advertisements or included with other products.

3. Rebates:

Rebate is also known as cash refund offers. Rebates are offers to refund part of the purchase

price of a product to its customers who send a proof of purchase to the manufacturer.

These are like coupons except that the price reduction occurs after the purchase and not

at the point of sale.

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Price Packs: Price packs offer consumers savings by way of reducing prices that are marked by the producer directly on the package.

Premiums:

These are the goods offered either free or at a low cost as an incentive to buy a

product. Premiums may be in-pack or on-pack (outside the pack).

Prizes:

They are offers of chance to win something such as cash, trips or goods – by luck or through

extra efforts. Contests of talent and sweepstakes or draws the most popular prize offering

promotions.

Tie-in Promotions:

Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or

contests to increase their pulling powers.

Cross Promotions:

Cross promotions involve using one brand to advertise non-competing brand.

Advertising Specialties:

These are useful articles imprinted with an advertiser’s name, given as gifts to consumers.

Patronage Rewards:

They are cash or other awards for the regular use of company’s products or services. They

Are values (in cash otherwise) that are proportional to one’s patronage of a certain vendor Or a

group of vendors. They aim at building brand loyalty.

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Pop Promotions:

Point of purchase (Pop) includes displays and demonstrations that take place at the point of

purchase or sale.

Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on consumer

promotions (42%). The major trade promotion tools are as follows;

Discounts:

It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price on a

particular quantity purchased during a stated time.

Allowances:

They are the amount offered in return for an agreement by the retailer to feature the

manufacturer’s products in some way; displays, advertising or otherwise.

Free Goods:

Free goods are the extra merchandise offered to middlemen who buy a specific amount of a

product.

Companies also offer push money and specialty advertising items to the middlemen.

Business Promotion Tools

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Companies spend huge amount on promotions focused on industrial consumers. The

major business promotion tools are as follows;

a) Trade Shows and Conventions.

b) Sales Contests.

Clearly, sales promotions play an important role in the total promotion mix. To use it well, the

marketer must define the sales promotion objectives, select the best tools, design the sales

promotion program, pretest and implement the program and evaluate its results.

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CHAPTER-2

9

o Industry profile

1.1.1 Automobile industry in India

The Automobile industry in India is the seventh largest in the world with an annual

production of over 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest

exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is

expected to top the world in car volumes with approximately 611 million vehicles on the nation's

roads.

Following economic liberalization in India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.

Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and

Mahindra, expanded their domestic and international operations. India's robust economic growth

led to the further expansion of its domestic automobile market which attracted significant India-

specific investment by multinational automobile manufacturers. In February 2009, monthly sales

of passenger cars in India exceeded 100,000 units.

Embryonic automotive industry emerged in India in the 1940s. Following the

independence, in 1947, the Government of India and the private sector launched efforts to create

an automotive component manufacturing industry to supply to the automobile industry.

However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the

license raj which hampered the Indian private sector. After 1970, the automotive industry started

to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars

were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to

the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with

Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government chose

Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in

1991 and the gradual weakening of the license raj, a number of Indian and multi-national car

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companies launched operations. Since then, [automotive component and automobile

manufacturing growth has accelerated to meet domestic and export demands.

1.1.2 Exports

India has emerged as one of the world's largest manufacturers of small cars. According

to New York Times, India's strong engineering base and expertise in the manufacturing of low-

cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several

automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors

plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General

Motors announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup a plant in India with an

annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the

Indian market and for export. The company said that the plant was a part of its plan to make

India the hub for its global production business. Fiat also announced that it would source more

than US$1 billion worth auto components from India.

According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of

cars.

Rank wise Largest Automobile Manufacturers in India by Sales

Maruti Suzuki

Hyundai

Tata Motors

Mahindra

GM Chevrolet

Honda

HSD

Ford

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Fiat Fiat Motors

Škoda

Local Brands

Chinkara: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, [Sailster].

Hindustan: Ambassador.

ICML: Rhino Rx

Mahindra: Major, Xylo, Scorpio, Bolero.

Mahindra Renault: Logan.

Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni,

Versa, Eeco, Gypsy, Grand Vitara.

Premier: Sigma, Rio.

San: Storm.

Tata: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo, Safari, Xenon,

Aria.

Foreign Brands

Locally manufactured Automobiles of Foreign Brands

Audi: A4, A6.

BMW: 3 Series, 5 Series.

Chevrolet: Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

Fiat: Grande Punto, Linea, Palio Stile.

Ford: Ford Figo, Ikon, Fiesta, Endeavour.

Honda: Jazz, City, Civic, Accord.

Hyundai: Santro, i10, i20, Accent, Verna Transform, Sonata Transform.

Mercedes-Benz: C-Class, E-Class.

Mitsubishi: Lancer, Lancer Cedia, Pajero.

Nissan: Micra.

Škoda: Fabia, Octavia, Laura,Superb.

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Toyota: Corolla, Innova, Camry.

Volkswagen: Polo, Jetta, Passat.

Automobiles sold in India as CBU (Completely Built Units)

Audi: A8, TT, R8, Q5, Q7.

Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur,

Mulsanne.

BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.

Chevrolet: Captiva.

Fiat: Nuova 500, Bravo.

Honda: Civic Hybrid, CR-V.

Jaguar: XF, XJ, XK.

Lamborghini: Gallardo, Murciélago.

Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.

Maybach: 57 and 62.

Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class, Viano,

SLS AMG.

Mitsubishi: Montero, Outlander.

Nissan: Teana, X-Trail, 370Z.

Porsche: 911, Boxster, Panamera, Cayman, Cayenne, Cayenne Hybrid

Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.

Škoda: Superb.

Suzuki: Grand Vitara.

Toyota: Land Cruiser, Land Cruiser Prado, Fortuner*, Prius.

Volkswagen: Beetle, Touareg, Phaeton.

Volvo: S60, S80, XC90.

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1.1.3 Commercial Vehicle manufacturers in India

Local Brands

Ashok Leyland

Force

Mahindra Navistar

Premier

Tata

Foreign Brands

Volvo

Audi

BMW

Mercedes-Benz

Electric car manufacturers in India

Ajanta Group

Mahindra

Hero Electric

REVA

Tata International

Tata

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1.1.3 EVOLUTION OF INDIAN CAR INDUSTRY

It was in 1898 that the first motorcar rode down India’s roads. From then till the First

World War, about 400 cars were directly imported to India from foreign manufacture.

The Hindustan Motors (HM) was set up in 1942 and in 1944; premier Automobile

Limited (PAL) was established to manufacture automobiles in India. However, it was PAL who

produced the first car in India in 1946, as HM was concerned with auto components and could

produce their first car only in 1949.

In 1952, the Government of India (GOI) set up a tariff commission to device regulations

to develop an indigenous automobile industry in the country. After the commission submitted its

recommendations, the GOI asked assembly plants, which did not have plans to setup

manufacturing facilities, to shut operations. As a result, General Motors Ford and assemblers

closed operations in the country. The year was 1954 and this decision of Government gave

market a turning point of vehicle each manufacturer should make. Therefore , each product was

safely count in its own segment with no fears of any impending competition. Also, no new

entrant was allowed even though they had plans for full – fledged manufacturing program. The

restrictive set of policies was chiefly aimed at building an indigenous auto industry. However,

the restrictions on foreign collaborations led to limitations on import of technology through

technical agreements.

The other control imposed on carmakers related to production capacity and distribution.

The GOI control even extended to fixation of prices for cars and dealer commissions. This

triggered the start of a protracted legal battle in 1969 between some carmakers and GOI. Simply

put, the three decades following the establishment of the passenger car industry in India and

leading upto the early 1980s, proved to be the 'dark ages' for the consumer, as his choice

throughout this period was limited to two models via Ambassador and Padmini. It was only in

1985, after the entry of Maruti Udyog, that the car makers were given a free hand to fix the

prices of cars, thus, effectively abolishing all controls relating to the pricing of the end product.

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In the early 80's, a series of liberal policy changes were announced marking another

turning point for the automobile industry. The GOI entered the car business, with a 74% stake in

Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan.

In 1985, the GOI announced its famous broad banding policy which gave new licenses

to broad groups of automotive products like two and four-wheeled vehicles. Though a liberal

move, the licensing system was still very much intact.

MUL extended its product range to include vans, multi-utility vehicles (MUVs) and mid-

sized cars. The company has single handedly driven the sales of cars in the country from 45,000

in FY84 to 409,951 cars by FY2000, cornering around 79.6% market share. With increasing

competition from new entrants, this market share has plummeted to almost 62% in FY2000.

The de-licensing of auto industry in 1993 opened the gates to a virtual flood of

international auto makers into the country with an idea to tap the large population base of 950mn

people. Also the lifting of quantitative restrictions on imports by the recent policy is expected to

add up to the flurry of foreign cars in to the country.

Many companies have entered the car manufacturing sector, to tap the middle and

premium end of car industry. The new entrants are Nissan (Micra), VW (Polo) and Chevrolet

(Beat) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi, Honda and Fiat

have entered the mid-sized car segment and Mercedes-Benz is in the premium end of market.

Car manufacturers like Malaysia based Proton are also in line to hit the Indian ramp.

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2.1 ORGANIZATION PROFILE

Introduction about Brand Volkswagen

Type Public

Industry Automotive

Founded 28 May 1937

Headquarters Wolfsburg, Germany

Key people Martin winterkorn: Chairman of the Board of Management,

Ferdinand Piech: Chairman of Volkswagen Supervisory board

Product Cars

Employees 368,500 (2009)

Website www.volkswagen.com

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2.1.1 VOLKSWAGEN:

Volkswagen (abbreviated VW) is an automobile manufacturer based in Wolfsburg,

Lower Saxony, Germany. Volkswagen was originally founded in 1937 by the German Labour

Front (Deutsche Arbeitsfront). Volkswagen is the original marque within the Volkswagen Group,

which includes the car marques Audi, Bentley Motors, Bugatti Automobiles, Automobili

Lamborghini, SEAT, Škoda Auto and heavy goods vehicle manufacturer Scania. In 2009, the

Supervisory Board of Volkswagen AG endorsed the creation of an integrated automotive group

with Porsche under the leadership of Volkswagen.

Volkswagen means "people's car" in German, in which it is pronounced [ˈfɔlks

ˌvaːɡən]. Its current tagline or slogan is Das Auto (in English The Car). Its previous German

tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love

of the Automobile, as translated by VW in other languages.

2.1.1.1 History

In the early 1930s German auto industry was still largely composed of luxury models,

and the average German rarely could afford something more than a motorcycle. Seeking a

potential new market, some car makers began independent "peoples' car" projects - Mercedes'

170H, Adler's Autobahn, Steyr 55, Hanomag 1,3L, among others. The trend was not new, as

Béla Barényi is credited with having conceived the basic design in the middle 1920's. Josef Gann

developed the Standard Superior (going as far as advertising it as the "German

Volkswagen").Also, in Czechoslovakia, the Hans Ledwinka's penned Tatra T77, a very popular

car amongst the German elite, was becoming smaller and more affordable at each revision. In

1933, with many of the above projects still in development or early stages of production, Adolf

Hitler declared his intentions for a state-sponsored "Volkswagen" program. Hitler required a

basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). The

"People's Car" would be available to citizens of the Third Reich through a savings scheme at 990

Reich mark, about the price of a small motorcycle (an average income being around 32RM a

week).

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Despite heavy lobbying in favor of one of the existing projects, Hitler chose to

sponsor an all new,state owned factory. The engineer chosen for the task was Ferdinand Porsche.

By then an already famed engineer, Porsche was the designer of the Mercedes 170H, and worked

at Steyr for quite some time in the late 1920s. When he opened his own design studio he landed

two separate "Auto für Jedermann" (car for everybody) projects with NSU and Zündapp, both

motorcycle manufacturers. Neither project come to fruition, stalling at prototype phase, but the

basic concept remained in Porsche's mind time enough, so on 22 June 1934, Dr. Ferdinand

Porsche agreed to create the "People's Car" for Hitler. Changes included better fuel efficiency,

reliability, ease of use, and economically efficient repairs and parts. The intention was that

ordinary Europeans would buy the car by means of a savings scheme ("Fünf Mark die Woche

musst Du sparen, willst Du im eigenen Wagen fahren" — "Five Marks a week you must save, If

to drive your own car you crave"), which around 336,000 people eventually paid into.

Volkswagen honored its savings agreements in West Germany (but not in East Germany) after

World War II.Prototypes of the car called the "KdF-Wagen" (German: Kraft durch Freude —

"strength through joy"), appeared from 1936 onwards (the first cars had been produced in

Stuttgart). The car already had its distinctive round shape and air-cooled, flat-four, rear-mounted

engine. The VW car was just one of many KdF programs which included things such as tours

and outings. The prefix Volks— ("People's") was not just applied to cars, but also to other

products in Europe; the "Volksempfänger" radio receiver for instance. On 28 May 1937, the

Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH (sometimes abbreviated to

Gezuvo) was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk

GmbH" on 16 September 1938.

Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of

the prototype, which was recognizably the Beetle known today. It was one of the first to be

evolved with the aid of a wind tunnel, in use in Germany since the early 1920s.

The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now

called Wolfsburg, which had been purpose-built for the factory workers. This factory had only

produced a handful of cars by the time war started in 1939. None was actually delivered to any

holder of the completed saving stamp books, though one Type 1 Cabriolet was presented to

Hitler on 20 April 1938 (his 49th birthday).

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War meant production changed to military vehicles, the Type 82 Kübelwagen ("Bucket

car") utility vehicle (VW's most common wartime model), and the amphibious Schwimmwagen

which were used to equip the German forces..

2.1.1.2 Global ranking

Volkswagen officially ranks as the world’s 3rd largest manufacturer as measured by

OICA in 2008. In 2009, it was widely reported that the Volkswagen Group had bypassed

General Motors as the world's second largest auto maker. However, this was not the case.

According to data published by all three companies, Toyota Group did lead in 2009 with 7.23

million units. General Motors ended the year in place 2 with 6.503 million units. Volkswagen

was third with 6.29 million units delivered to customers. Official OICA numbers for the

preceding year are published in summer of the following year. In the first quarter of 2010,

according to data provided by all three manufacturers, this trend continued; Volkswagen taking

third place with 1.73 million units delivered. GM Group is in 2nd place with 1.99 million units

sold]. Toyota Group ranks number one with 2.31 million units sold. Volkswagen is aiming to

become, sustainably, the world's largest car maker by 2018.

2.1.2 A brief journey through a long history

When in 1937 the company known as "Gesellschaft zur Vorbereitung des Deutschen

Volkswagens mbH" was founded, no one could have guessed that it would one day be Europe's largest

carmaker. The history of the company - with all its trials and tribulations - is first and foremost a story of

impressive success.

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1937-1945

On May 28th, 1937 the "Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH" company is

founded, and on September 16th, 1938 it is renamed "Volkswagenwerk GmbH". In early 1938, in what is

today Wolfsburg, work begins on construction of the Volkswagenwerk plant which is to house

production of the new vehicle designed by Ferdinand Porsche.

During the Second World War Volkswagenwerk's production is switched to armaments. Some 20,000

forced labourers, prisoners of war, and later also concentration camp prisoners, work at the plant.

In September 1998, in recognition of the events of that time, VOLKSWAGEN AG established a

humanitarian fund on behalf of the forced labourers compelled to work at Volkswagen during the Second

World War. By the end of 2001 more than 2,050 people in 26 countries had received humanitarian aid

from the fund. Furthermore, a Memorial in remembrance of the forced labour employed at the

Volkswagenwerk plant is currently being established at Wolfsburg, involving contributions from present-

day Volkswagen apprentices.

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1945-1949

After the end of the Second World War, in mid June 1945, responsibility for Volkswagenwerk is placed

in the hands of the British Military Government. Under the management of Major Ivan Hirst, mass

production of the Volkswagen Beetle is started.

1949-1960

On March 8th, 1950 the Type 2 goes into production, expanding the company's product range. The

Volkswagen Bus, still today known to many as the "VW Bully", soon creates rising demand thanks to its

multifunctional capabilities. In 1956 a separate manufacturing base for the Transporter is established in

Hanover, at the same time setting down the roots of today's Volkswagen Commercial Vehicles brand.

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1960-1980

On February 17th, 1972 Volkswagen breaks the world car production record: with 15,007,034 units

assembled, the Beetle surpasses the legendary mark achieved by the Ford Motor Company's Model T,

popularly known as the "Tin Lizzy", between 1908 and 1927.

In 1973 the Passat is the first model of the new generation of Volkswagen vehicles to go into production -

with front-wheel drive, a water-cooled four-cylinder engine and a range of engines up to 110 bhp. The

Passat is built in line with the modular strategy, by which standardized components usable in a range of

different models provide significant rationalization.

In January 1974 the first Golf is built at the Wolfsburg plant. The compact saloon quickly becomes a hit,

and advances to become the legitimate heir to the legendary Beetle. The same year also sees the launch of

the sporty Scirocco, which was to continue in production until 1981.

In 1976 the first Golf GTI rolls off the production line. The car, with its110 bhp engine, creates a real

furore on the roads - and lays the foundations for the birth of a legend.

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1980-1990

In June 1983 production of the second-generation Golf begins. The car is designed for a largely

automated assembly process, and in the specially erected final assembly hall, designated Hall 54, robots

are deployed for the first time in vehicle manufacture.

1990-2000

With the production launch of the Lupo 3L TDI, the first production car to offer fuel consumption of just

three litres per 100 kilometres, in July 1999, Volkswagen once again makes automotive history.

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2000-2003

In August 2002, at Volkswagen Slovakia, a.s. in Bratislava, mass production of the Touareg, a luxury-

class off-road vehicle, is started, marking the Volkswagen brand's move into an entirely new market

segment.

In December 2002 the "Auto 5000 GmbH" company, operating a plant at the Group's site in Wolfsburg,

starts production of the Touran compact van. A special collective pay model has been developed, aimed

at implementing lean production and involving flat hierarchies, team working, flexible working hours and

the deployment of more process expertise.

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In 2003 production of the fifth-generation Golf is started, embodying a new dynamism in its design and engineering.

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VOLKSWAGEN PRODUCTS IN INDIA

Volkswagen Polo

European car manufacturer Volkswagen is

planning to launch its popular hatchback car

Volkswagen Polo in India by March 2010. Renowned for

luxury cars across the globe, Volkswagen Motors is eying the most competitive hatchback car market in

India. The car is expected to cost between Rs.4-7lakhs.

Volkswagen Motors is all set to drive into the hatchback car segment in India with its popular

hatchback Volkswagen Polo. The company has plans to launch the stylish Polo in India at the end of

March 2010. The car will be available in seven variants including three petrol, three diesel and a sports

version. The glimpse of Volkswagen Polo at auto expo 2010 showcased the stylish looks, performance

and advanced features which are available at low price tag in Volkswagen Polo.

Company Segment Maximum Power

Volkswagen (VW) India

Hatchback70PS @ 5400rpm (petrol), 80PS @ 4000rpm (diesel)

Striking Features

Stylish Exteriors

Advanced Safety Features

Spacious interiors

Low Price Tag

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Appearance

Volkswagen Polo is a stylish hatchback featuring an aggressive front grille with stylish

headlamps and body colored bumpers making the front appearance very stylish and aggressive. Body

colored door handles and body colored rear view mirrors provide stylish side profile to Volkswagen Polo.

Body colored bumpers, bumpers strips, roof rails, silver colored, black side bump strips, chrome-plated

internal door handles, body colored door mirrors, chrome front radiator grille, full size wheel trims etc

enhance the appearance of this smart hatchback.

Comfort

Loaded with advanced integrated music system with Aux in support, FM, and with four

integrated speakers offering best in class entertainment during journey, Volkswagen Polo provides world

class comforts. Volkswagen Polo will be packed with powerful climate control dual air conditioning

system with HVAC providing immense driving comforts. Dual tone dashboard packed with advanced

instrument cluster adds to the styling comfort of the car.

Volkswagen Jetta

Jetta, packed with luxury, comfort and stunning performance, is a latest offering from world's

one of the leading car makers Volkswagen from Germany. The all new Volkswagen Jetta car is geared

and graced with wealth of features that would offer superior class of on road performance while

providing cushion like comfortable ride to its occupants. The launch of Volkswagen Jetta in the sedan car

segment would make the competition more tough for its rivals like Honda, Hyundai and Maruti.

The all new Volkswagen Jetta comes in both petrol and diesel variants, with 1.6 L and 1.9 L engine

versions exhaling 101 bhp & 104 bhp of maximum output respectively. So embrace the beauty and enjoy

the power packed performance of this luxury featured sedan car that has been launched in five sizzling

color and boasts a price ranging between 14-15 Lacs.

Company Segment USP

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Volkswagen (VW) India

SedanHead turning beauty with innovative technology

Striking Features

Superior class exterior with catchy front-grille, indicators and chrome plating on windows.

102 PS strong output engine mated with 05 speed manual gearbox for refined performance.

Airbags for the driver and front passenger.

Ergonomically designed seats for comfortable ride.

MP3 compatible 6-disc CD changer and 10 loudspeakers.

Equipped with Anti-lock Braking System (ABS)and Electronic Stabilisation Program (ESP) for

safety while driving, even in tough terrains.

Powerful fog lamps for better visibility in bad weather conditions.

Elegant looking 16" alloy wheels that catches the eye-balls.

Convenient and spacious trunk offering much flexibility.

Color Options

Campanella White

Red Spice

Reflex Silver

Platinum Grey

Deep Black

Price & Variants of Volkswagen Jetta Car

The price range of Volkswagen Jetta Sedan car starts with Rs 13-14 Lakhs. The ex-showroom (in Mumbai) price of various models are given below:

Volkswagen Jetta 1.6 Trendline: Rs. 13,19,209

Volkswagen Jetta TDI 1.9 Trendline: Rs. 14,45,534 Volkswagen Jetta TDI 1.9 Comfortline: Rs. 16,94,042

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Volkswagen Passat

Foraying in the luxury car segment of India, German auto

maker Volkswagen (VW) is here with Passat- dressed in classical

styling, powered with most advanced technology and state of the art

comfort features. The captivating features of VW Passat-

electronic seat adjustments, parking sensors, ultra silent cabin, high

torque diesel engine - makes it a true luxury car at its best.

The luxury sedan Passat will be imported from VW Germany as CBU (Completely Built Units) and

would be available for sale through company's sole dealer in India. Volkswagen Passat, with its price tag

of Rs. 25 Lac - 28 Lac, will challenge the luxury car market of BMW and Mercedes.

Company Segment USP

Volkswagen (VW) India Luxury Sedan High end luxury features.

Striking Features

Powerful TDI engine that produces 103 kW (140 hp) of power.

Achieved the top five-star rating for safety and protection In the Euro NCAP crash test.

Leather-covered multi-function steering wheel.

The direct shift gearbox DSG for better transmission control.

Electric parking brake prevents the car from rolling back especially at traffic lights.

12-way front seats with integral adjustable lumbar support.

The 6-disc CD changer with MP3 compatibility feature.

Eye-catching 16" alloy wheels.

Four-link rear suspension gives perfect riding comfort and stability.

30

Model Variants

Volkswagen Passat Highline DSG Volkswagen Passat Highline DSG S

Color Options

a) Candy Whiteb) Arctic Blue Silver Metallicc) Reflex Silver Metallicd) Wheat Beigee) Deep Black (Pearl Effect)f) Mocca Antracite (Pearl Effect)

Price & Competition for Volkswagen Passat

With its innovative technology and advanced features VW Passat will spell compete with Toyota Camry,

Nissan Teana, Mercedes C Class, BMW 3 series and Audi A4 category.

Volkswagen Passat has a price tag of Rs.25.0-28.0 Lacs.

31

Volkswagen Beetle

Volkswagen motors have launched its much awaited compact luxury car 'Volkswagen Beetle' in India in premium D-segment. The cute looking Volkswagen Beetle is a small car with unique and stylish exteriors. The legendary curves throughout Beetle’s body provide a distinctive look. Initially, the car will be imported as a CBU (Completely Built Unit) from its Mexican based manufacturing plant. With only one variant in the market, Volkswagen Beetle is a tough competition for other D-segment luxurious small car models like Fiat 500 and another awaited model Fiat Bravo.

Company Segment USP

Volkswagen Hatchback Power 420 PS (309 kW/414 bhp) @ 7,800 rpm

Key Features

Cute and Stylish look

Legendary curves throughout the body

Reliably secure with reflectors for night driving

Climatic A.C

Color Options

Salsa Red

Candy White

Black

Sunflower

Reflex Silver

Laser Blue

Price (Rs. in lakhs)

New Beetle 2.0L - 20,45,000

32

Chapter-3

33

RESEARCH METHODOLOGY

This research study involves knowing the brand positioning of Mixer Grinder

adopted by Bajaj Electricals Ltd. What uniqueness and special features it has got in

its product which differentiated it form its competitors and also how Brand

Positioning is stimulates.

Process Of The Research:

I have completed my project with visiting different retails outlets, dealers,

distributors, and also service centres and customers in Vijayawada market to

analyze how sales of Brand Volkswagen positioned and help to boost up their sales

in comparison on their competitors.

So entire project was divided into three parts:

01. Conducting market research in the various part of the city in order to get the

idea about the effectiveness of Brand Position in bringing the customers and

dealers satisfaction.

02. Retailers or dealers perception, views or satisfaction level regarding the

product they are using.

03. Identification of the factor that are responsible for the dealers or consumers

response towards these brand positioning.

34

Like whether offered sales promotion,

Brand loyalty,

Approaches towards the new product,

Explore needs of the consumers

TYPE OF STUDY:

My study is an Empirical Research. Empirical research is practical or data based

research. Whatever I have done relies on the experience and observations. Lastly

the conclusions with which I have come up are capable of being verified.

DATA SOURCES:

I have collected the data from different area in the Vijayawada market. Data are

collected through both the primary and secondary sources. Primary data are

collected from the market by circulating questionnaires to the respondent and the

secondary data are collected from web sites and published material as listed in the

bibliography.

DATA COLLECTION METHODS:

The data has been collected through a personal survey.

SAMPLING METHODS: This research is based on the non probability

Quota sampling methods. Since I have selected my sample dealers or

distributors according to channel wise.

DATA COLLECTION INSTRUMENT: I have collected data using face

to face (personal interaction) for the customer’s views and dealers views and

Scheduling methods for analyzing the customer’s and dealer’s satisfaction

and the effectiveness of the branding after sales-service. Scheduling methods

are those methods in which a schedules containing relevant question are

35

prepare and than enumerators fill the schedules and the basis of the reply

given by respondent. My questionnaire consists of both open ended and

close ended question.

3.1 Need for the Study:

Branding is an integral part of a product which is offered for sale. Today, we the consumers

are not buying mere products; in fact we are buying brands. In the present Scenario of globalized

competition, many organizations are offering similar products serving similar purposes. In such

cases, Branding plays the role of differentiating the product of one manufacturer from the other.

Also, the customers’ perception of a brand plays a major role in the market stability of an

organization.

Hence the study on the effectiveness of branding will contribute in the long term decision

making of an organization.

3.2 TITLE:

A STUDY ON SALES PROMOTION IN AUTOMOBILE SECTOR OF VOLKSWAGEN AT

ATR CARS PRIVATE LTD, VIJAYAWADA.

3.3 OBJECTIVES OF THE STUDY

3.3.1 PRIMARY OBJECTIVE:

To study the Sales promotion of Volkswagen at ATR CARS PVT. LTD., Vijayawada

3.3.2 SECONDARY OBJECTIVES:

To analyze how a SALES PROMOTION effects the customer’s purchase decision.

To study the customer’s perception on the Promotion of ‘Volkswagen’

36

To study the reasons to prefer Volkswagen to other brands

3.4 SAMPLING DETAILS:

3.4.1 SAMPLE SIZE:

It was decided to choose 70 samples out 150 of customers through convenient sampling

through the questionnaire for the respondents.

3.4.2 SAMPLING TECHNIQUE:

‘PERCENTAGE METHOD’ is chosen from sampling technique tools for analyzing the data.

3.4.3 SAMPLE DESIGN:

‘SIMPLE RANDOM SAMPLING’ has been adopted as sample design for the study

3.4.4 Scope of the study:

The scope of the study is limited to the extent of knowing customers opinions on

Volkswagen residing within Vijayawada City.

3.5 LIMITATIONS:

1. Lack of free time with the respondents.

2. The study is limited by time period which is restricted to 8 weeks.

3. The study is limited to customers of Volkswagen.

4. The study is confined to the limits of Vijayawada city only

o METHODOLOGY :

37

Methodology is a systematic procedure of collecting information in order to analyze

and verify a phenomenon. The collection of data or information is done through principle

sources viz. primary data and secondary data.

3.7 SOURCES OF DATA

3.7.1 SOURCES OF PRIMARY DATA:

Primary data is the information collected directly without any reference. The primary

data was collected with the help of direct interactions, interviews discussions with the customers.

3.7.2 SOURCES OF SECONDARY DATA:

Secondary data is obtained from the books, newspapers, journals, magazines and from

organizations websites.

SOURCES OF DATA

Primary Data Secondary Data

Questionnaire Newsletter

Observation Journals

Interviews Magazines

38

Visits to other Newspapers

Companies Information Books

Through Departmental heads Website

ORGANISATION CHART

GM

SALES MANAGER (SALES) SALES MANAGER (MARKETING) TECHNICAL

OPERATORS

[field]

[SHOWROOM] [OFFICE]

TEAM LEADER OFFICE SUPERVISOR FINANCE (VW )

FIELD OFFICERS (5 MEN) SALES OFFICERS (3 WOMEN) RECEPTION

(2 WOMEN)

EMPLOYEE STRENGTH:

A total of 30 personnel including executives, managers and showroom service workers are

Working for the company.

39

DUTIES AND RESPONSIBILITIES:

GENERAL MANAGER:

The company General manager is Mr.V.Srinivas. He takes care of sales, stock, deliveries,

customer feedback, payments, events etc.

SALES MANAGER:

There are two sales managers in the office. The first manager is assigned for sales targets in field

and the second manager takes care of marketing. They both combined plan future events and

offers.

TEAM LEADER:

The main duty of team leader is to effectively guide the field officers about events, targets and

take care of sales.

FIELD OFFICERS:

Field officers duty is to do cold calls, events, road shows and to interact directly with customers

and take the feedback about performance of vehicles.

FINANCE OFFICER:

Finance officer approaches the customer to offer the bank loans required for the customer and

even clarifies the doubts about finance and also finance officer takes care of transactions done by

the customer.

40

TECHNICAL OPERATORS:

Their duty is to book the vehicles, registration of temporary number.

SWOT ANALYSIS OF AUTOMOBILE SECTOR:

Strengths:

1. Quality

2. Reliable

3. Performance-oriented

4. Ability to design products with differentiating features

5. Brand image

6. Experience and know-how in technology

Weaknesses:

1. Market share is threatened by huge lineups from Toyota, BMW, Merc High labor

costs

2. Production facilities

Opportunities:

1. Road development

2. Territorial expansion

3. Car penetration in India

41

4. Interest in environment friendly vehicles

5. Tax benefits

Threats:

i. Global competition.

ii. Government regulations, fuel issues.

iii. Rising oil and raw material prices in the world market

Sales Promotion

Sales Promotion is the use of short-term incentives to encourage the purchase or sale of a

product. Sales promotions are programs such as contests, coupons, displays, trade shows,

samples, premiums, product demonstrations, or other incentives that marketers design to build

interest in or encourage purchase of a product during a specified time period. Sales promotions

are intended to stimulate immediate action, often in the form of a purchase, rather than to build

long-term loyalty.  Whereas advertising and personal selling offer reasons to buy a product, sales

promotion offers reasons to buy now.

Sales promotion geared to marketing intermediaries is called trade promotion. Companies

actually spend about as much on trade promotion as on advertising and consumer-oriented sales

promotion combined. Trade promotion strategies include offering free merchandise, buyback

allowances, and merchandise allowances along with sponsorship of sales contests to encourage

wholesalers and retailers to sell more of certain products or product lines.

Sales promotion tools are used by most organizations, including manufacturers,

distributors, retailers, trade associations, and not-for-profit institutions. They are targeted toward

final buyers, retailers and wholesalers, business customers, and members of the sales force.

Several factors have contributed to the rapid growth of sales promotion, particularly in consumer

markets. First, inside the company, product managers face greater pressures to increase their

current sales; and sales promotion is viewed as an effective short-run sales tool. Second,

externally, the company faces more competition; and competing brands are less differentiated.

Increasingly, competitors are using sales promotion to help differentiate their offers. Third,

42

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

Finally, consumers have become more deal oriented, and ever-larger retailers are demanding

more deals from manufacturers. The growing use of sales promotion has resulted in promotion

clutter, similar to advertising clutter, however. Consumers are increasingly tuning out sales

promotions, weakening their ability to trigger immediate purchase. Manufacturers are now

searching for ways to rise above the clutter, such as offering larger coupon values or creating

more dramatic point-of purchase displays.

Sales Promotion Objectives:

Sales promotion objectives differ widely:

1. Increase Short-Term Sales (consumer promotion)

2. Build Long-Term Market Share (consumer promotion)

3. Encourage Retailers to Carry New Items and Additional Inventory (trade promotion)

4. Encourage Retailers to Advertise and Provide More Shelf Space (trade promotion)

5. Encourage Retailers to Buy Ahead (trade promotion)

6. Increase Sales Force Support (sales force promotion)

7. Increase Number of New Accounts (sales force promotion)

Sellers may use consumer promotions to increase short-term sales or to help build long-

term market share. Objectives for trade promotions include getting retailers to carry new items

and more inventories, getting them to advertise the product and give it more shelf space, and

getting them to buy ahead. Sales force promotion objectives include getting more sales force

support for current or new products or getting salespeople to sign up new accounts.

  Sales promotions are usually used together with advertising, personal selling, or other

promotion mix tools. Consumer promotions must usually be advertised and can add excitement

and pulling power to ads. Trade and sales force promotions support the firm’s personal selling

process.

Consumer-Oriented Sales Promotion:

The main consumer promotion tools include samples, coupons, cash refunds, price packs,

premiums, advertising specialties, patronage rewards, point-of-purchase displays and

43

demonstrations, and contests, sweepstakes, and games. Consumer-oriented sales promotions can

be classified as either price-based or attention-getting consumer promotion.

Price-Based Consumer Promotion:-

Price-based consumer promotions emphasize short-term price reductions or refunds, encouraging

consumers to choose a brand while the deal is on. If used too frequently, however, consumers

become conditioned to purchase the product only at the lower promotional price.

Coupons:-

A coupon is a certificate that gives buyers a saving when they purchase a specified product.

Coupons can stimulate sales of a mature brand or promote early trial of a new brand.

Redemption rates have been declining in recent years, however, as a result of coupon clutter.

Most major consumer goods companies are issuing fewer coupons and targeting them more

carefully. They are also cultivating new outlets for distributing coupons, such as supermarket

shelf dispensers, electronic point-of-sale coupon printers, or “paperless coupon systems.”

44

Cash Rebate Offers:

A cash rebate is an offer to refund part of the purchase price of a product to consumers who send

a “proof of purchase” to the manufacturer.

Price Packs:

A price pack is a reduced price that is marked by the producer directly on the label or package.

Price packs can be single packages sold at a reduced price, or two related products banded

together. Price packs are very effective—even more so than coupons—in stimulating short-term

sales.

Patronage Rewards:

A patronage reward is cash or other award for the regular use of a certain company’s products.

45

Special Packs:

A special pack is a package that gives the shopper more products instead of lowering its price. A

special pack also can be a separate product given away along with another product.

46

Attention-Getting Consumer Promotion:

Attention-getting consumer promotions stimulate interest in and publicity for a company’s

products.

Samples:

A sample is a small amount of a product offered to consumers for trial. Sampling is the most

effective—but most expensive—way to introduce a new product. About 84 percent of consumer

packaged-goods marketers use sampling as a part of their promotion strategy. Some samples are

free; for others, companies charge a small amount to offset its cost. The sample might be

delivered door-to-door, sent by mail, handed out in a store, attached to another product, or

featured in ads. Samples can also come with the morning newspaper, in a sample pack, or via the

Internet.

47

Premiums:

A premium is a good offered either free or at low cost as an incentive to buy a product. A

premium is not the product being promoted. It is used as an incentive to encourage purchase of

the featured product. A premium may come inside or outside the package, or through the mail.

48

Advertising Specialties:

An advertising specialty is a useful article imprinted with an advertiser’s name, given as a gift to

consumers. Typical items include pens, calendars, key rings, matches, shopping bags, T-shirts,

caps, nail files, and coffee mugs. In a recent study, 63 percent of all consumers surveyed were

either carrying or wearing an ad specialty item. More than three-quarters of those who had an

item could recall the advertiser’s name or message before showing the item to the interviewer.

Point-of-Purchase (POP) Promotions:

A point-of-purchase promotion is a display or demonstration that takes place at the point of

purchase or sale. Unfortunately, many retailers do not like to handle the hundreds of displays,

signs, and posters they receive from manufacturers each year. Manufacturers have responded by

49

offering better POP materials, tying them in with television or print messages, and offering to set

them up.

Contests, Sweepstakes, and Games:

Contests, sweepstakes, and games are promotional events that give consumers the chance to win

something—such as cash, trips, or goods—by luck or through extra effort. A contest calls for

50

consumers to submit an entry—a jingle, guess, or suggestion—to be judged by a panel that will

select the best entries. A sweepstakes calls for consumers to submit their names for a drawing. A

game presents consumers with something—bingo numbers, missing letters—every time they

buy, which may or may not help them win a prize.

Trade-Oriented Promotion:

Manufacturers direct more sales promotion dollars toward retailers and wholesalers (78

percent) than to consumers (22 percent). Trade promotion can persuade resellers to carry a brand,

give it shelf space, promote it in advertising, and push it to consumers. Shelf space is so scarce

51

these days that manufacturers often have to offer discounts, allowances, buy-back guarantees, or

free goods to retailers and wholesalers to get products on the shelf and, once there, to stay on it.

Manufacturers use several trade promotion tools. Many of the tools used for consumer

promotions—contests, premiums, displays—can also be used as trade promotions.

Discounts:

A discount is a straight reduction in price on purchases during a stated period of time.

This is also called price-off, off-invoice, or off-list. The discount could be based on the volume

of the product ordered. 

Allowances:

An allowance is promotional money paid by manufacturers to retailers in return for an agreement

to feature the manufacturer’s products in some way. An advertising allowance compensates

52

retailers for advertising the product. A display allowance compensates them for using special

displays.

 

Conventions and Trade Shows:

Many companies and trade associations organize conventions and trade shows to promote their

products. Firms selling to the industry show their products at the trade show. A trade show is an

event at which many companies set up elaborate exhibits to show their products, give away

samples, distribute product literature, and troll for new business contacts. Trade shows are major

vehicles for manufacturers to show off their product lines to wholesalers and retailers. More than

4,300 trade shows take place every year, drawing as many as 85 million people. Vendors receive

many benefits, such as opportunities to find new sales leads, contact customers, introduce new

products, meet new customers, sell more to present customers, and educate customers with

publications and audiovisual materials. Trade shows also help companies reach many prospects

not reached through their sales forces. About 90 percent of a trade show’s visitors see a

company’s salespeople for the first time at the show. Business marketers may spend as much as

35 percent of their annual promotion budgets on trade shows.

Other Programs:

Manufacturers may offer free goods, which are extra cases of merchandise, to resellers who buy

a certain quantity or who feature a certain flavor or size. They may offer push money—cash or

53

gifts to dealers or their sales forces to “push” the manufacturer’s goods. Most retailers also

charge manufacturers slotting fees—payments demanded by retailers before they will accept new

products and find “slots” for them on the shelves. Manufacturers may also give retailers free

specialty advertising items that carry the company’s name, such as pens, pencils, calendars,

paperweights, matchbooks, memo pads, and yardsticks. For more expensive and highly complex

products, manufacturers often provide specialized training for retail salespeople. This

background helps salespeople explain features, competitive advantages, and other information to

consumers. Training can be provided in several ways: A manufacturer’s sales representative can

conduct training sessions during regular sales calls, or the firm can distribute sales literature and

videocassettes.

54

CHAPTER - 4

55

DATA SUFFICIENCY AND ANALYSIS:

1. Which car (fuel based) do u prefer?

a) Petrol

b) Diesel

c) L.P.G.

Table no: 1

Customers preference No of customers

Petrol 34

Diesel 50

L.P.G 16

Analysis: From the above table, 34% of the people are preferring to have a petrol car,50% of the

people are preferring diesel version cars and remaining are preferring LPG cars.

Petrol Diesel LPG

34 50 16

Customer Preference

56

Interpretation: by the result we came to know that the customers go for diesel one with Sound

quality.

2. What do you feel great about your car when compared to other cars in the

Market?

o Fuel efficiency

o Durability

o Low maintenance

o Sound quality

o Safety

Table no: 2

Customers perspective No of customers

Fuel efficiency 30

Low maintenance 18

Sound quality 22

Safety 30

Analysis:

57

Customer

Perspecti

ve

Fuel

efficie

ncy

Low m

ainten

ance

Sound Q

uality

Safet

y0

3018 22 30

Customer PerspectiveSeries1 Series2 Series3

Interpretation: From this question we can position the cars according to the customer’s

perspectives. Many of the VOLKSVAGEN customers are buying the cars by seeing its Brand

Name only. The no. of customers satisfied with the fuel efficiency is very low.

3. What kinds of offers do you like or expect from the dealer?

1. Free insurance

2. Special discount on sale of cars

3. Extending the service period

4. Finance availability with 0% interest

Data analysis:

Offers No. of customers

Free insurance 16

Special discount on sale of cars 14

Extending the service period 40

Finance availability with 0% interest 30

58

0 18 1440 30

0

OffersSeries1 Series2 Series3

Interpretation: By the result of this question we come to know about the various promotional

techniques/offers which attract the customers. From the above analysis many customers are

expecting the extension in the service period from the various offers given to them.

4. What more do you expect from your dealer?

1. Information about new cars

2. Information about service and mileage

3. Assistance regarding loans and insurance

4. Understanding customer needs

Data analysis:

Expectations of customer No. of customers

Information about new cars 20

Information about service and mileage 36

Assistance regarding loan & insurance 20

Understanding customer needs 24

59

020 36 20 24

Customer ExpectationsSeries1 Series2 Series3 Series4

Interpretation: Most of the customers are expecting the information about service and mileage

regarding the cars from the dealer. From the above analysis we come to know about the

customer’s expectations and their post purchase service demands from the dealer.

5. Where do you get your car serviced regularly?

1. At authorized service centre

2. At a local workshop near my home

Data analysis:

Place of service No. of customers

At authorized service centre 70

At a local workshop near home 30

60

1

0

70

30

ServicePlace of service At authorized service centre At a local workshop near home

Interpretation: Most of the Volkswagen customers are interested to service their vehicles only

at the authorized dealers. From this we come to know what the importance of authorized service

centers for car is.

6. What other brand(s) will you seriously consider before making this car

Purchase?

1. Honda

2. MERC

3. SKODA

4. Volkswagen

Data analysis:

61

Brand name No. of customers

Honda 24

MERC 30

Skoda 36

Volkswagen 10

Brand name Honda MERC Skoda Volkswagen

0

2430

36

10

Brands

Series1 Series2 Series3

Interpretation: Most of the Volkswagen customers are opting for Skoda when they are asked to

consider a brand other than VW. MERC occupies the second place in their preference.

7. Can you share your experience with after sale service support?

1. Very much satisfied

2. Satisfied

3. Ok

4. Not satisfied

Data analysis

62

Post service experience No. of customers

Very much satisfied 10

Satisfied 60

Ok 18

Not satisfied 12

0 10

60

18 12

ExperienceSeries1 Series2 Series3 Series4

Interpretation: This question is prepared to know the service levels of the authorized Dealer.

Most of the customers are just telling SATISFIED about the service. Only a very few customers

are very much satisfied with the service. Even some of the customers are not satisfied with the

service given by the authorized service men.

8. Which bank do you prefer in getting financial help while purchasing a car?

1. ICICI

2. HDFC

3. SBI

4. Others

Data analysis

Name of the bank No. of customers

63

ICICI 42

HDFC 12

SBI 40

Others 6

Name of the bank ICICI HDFC SBI Others

0

42

12

40

6

Banks Series1 Series2 Series3

Interpretation: Most of the customers prefer ICICI and SBI banks for taking financial help while

purchasing a car. Customers are asking for 0% interest on financial help provided by the banks

9. How do you feel when an unknown sales person approaches you by knowing

Your full details to demonstrate about any product?

1. I will not respond

2. Lost my privacy

3. Interested in knowing (if I feel a need of it)

Data analysis:

Customer opinion No. of customers

64

I will not respond 22

Lost my privacy 10

Interested in knowing (if I feel a need 68

of it)

Customer opin-ion

I will not respond

Lost my privacy Interested in knowing (if I feel a need

of it)

022

10

68

Customer feelingSeries1 Series2 Series3

Interpretation: This question is prepared indirectly to know about the customer’s opinion about

the Data Bank maintenance by the VOLKSWAGEN. In reply majority of the customers gave a

positive reply by showing interest in knowing about the cars when a sales person gives a detailed

description about the cars

10. What’s your opinion on a Brand Ambassador for the cars?

1. Very necessary

2. Not needed

3. Waste of money for manufacturer

Data analysis:

Customer opinion on ambassador No. of customers

Very necessary 86

65

Not needed 14

Waste of money for manufacturer 0

1

0

86

140

Customer opinion on ambassador

Customer opinion on ambassador Very necessaryNot needed Waste of money for manufacturer

Interpretation: This question is meant to know about the importance of Brand Ambassador for a car in the customer’s point of view. Most of the VOLKSWAGEN customers think that a Brand Ambassador is very necessary for promoting a car

11. What’s your opinion on the price list of Volkswagen cars?

1. Affordable by common man

2. Affordable only by rich man

3. Can’t say

Data analysis:

Customer opinion No. of customers

66

Affordable by common man 12

Affordable only by rich man 84

Can’t say 4

Customer opinion

Affordable by common man

Affordable only by rich

man

Can’t say

0

12 84 4

Customer opinion

Series1 Series2 Series3

Interpretation: More than 80% of customers think that VOLKSWAGEN cars are affordable only by rich men. These cars are too expensive for an economic/common man of the society.

67

Chapter-5

FINDINGS OF THE PROJECT:

Sales Promotion, a short-term inducement, offered to a consumer or trade has gained momentum

as a promotional tool world over. It represents nearly three fourth of the marketing budget at

most consumer product companies. Sales promotions can enhance consumers’ self-perception of

being “smart” or a “good” shopper.

Quality is the most influencing factors in the purchase decision while price is also an

important for purchase decision.

68

Schemes always attract more and more consumers towards particular brand. Simultaneously it gives idea about the factors which consumers look most in the product before they make final decision.

Free insurance and free accessories are the two main offers/schemes which consumers have came across at the time of purchase.

TV as the best media to market the product which will cover majority of the viewer ship. On the second place it shows news papers as the media to promote the product in the market.

People are not much aware of the schemes which continue in the market it may be because of the present stock of the product at their place.

Free insurance and EMI or other free schemes are more demanded and more aware

schemes in the market.

People are ready to switch over to another brand if they find better promotional schemes which suit their budget means more quality, better features etc.

People are more quality and price oriented.

Consumer remembers that name of the product by the company name and also from the past performance of that company.

Customers are looking for any type of the promotions on the product before they are going to purchase.

SUGGESTIONS:

The findings of the empirical study indicate that unless the brand to be promoted is in the consideration

set of the consumer, sales promotion by itself is unlikely to have any major impact. Clearly this shows

that managers need to invest into brand building exercise so that his/her brand appears in the

consideration set of the target consumers. Only after this should he spend time, money and energy on

sales promotion activities.

Sales promotion should not be used in isolation but need to be integrated with other tools and in line with

the overall positioning of the brand. Also the importance of the role of mass media came out clearly in the

study.

69

Companies need to create sufficient awareness about sales promotion schemes through mass media in

order to create awareness. AUTOMOTIVE products are low involvement products characterized by

switching behavior. Also the person going to the showroom for the purchase of vehicle is the final

decision maker of the brand. Hence it is essential that companies need to design attractive, striking offers

for scheme announcements.

The findings exhibited that both the retailers and consumers perceived that sales promotion activities

carried out by the companies for increasing sales in short term and clearing excess stocks. What it implies

is that companies need to use sales promotion synergistically and communicate so that they provide value

to the target audience and enhance brand quality/image perceptions.

Companies need to systematize information flow regarding sales promotion activities particularly at

dealer and retailer level. Ensuring proper information flow and devising checks and measures to reduce

misappropriations and implementation flows should be considered critical aspects for the success of sales

promotion activities by the companies. Through dealers and proper feedback mechanism, companies keep

in touch with the market.

Developing a system to tap such responses from time to time both at dealer and consumer level would be

helpful for planning future sales promotion activities. In order to build trust and commitment companies

should tap preferences, perceptions of dealers as well as consumers.

BIBILOGRAPHY:

BOOKS:

Philip Kotler and Armstorng.G, “Marketing”, Prentice Hall of India, 12th Edition, New Delhi, 2006.

Bye. Walker & others, “Marketing Management”, Tata McGraw Hill, New Delhi.

Neelamegham.S.,” Marketing in India – Cases and readings”, Vikas Publishing House, New Delhi.

Enis.B.M., “Marketing Classics: A Selection of Influential articles”, McGraw Hill,

New York 1991.

70

Ramaswamy V.S. & Name Kumari. S, “Marketing Management – Indian Context”, Macmillan, New Delhi, 1900.

William J. Stanton, “Fundamentals of Marketing”, McGraw Hill, New York, 1994.

JOURNALS & MAGAZINES:

BUSINESS TODAY

NEWS PAPERS:

BUSINESS LINE

THE HINDU

ECONOMIC TIMES

WEB SITES:

www.volkswagen.co.in

www.marketing.com

www.wikepidia.com

QUESSIONNAIRE

1. Which car (fuel based) do u prefer?

1. Petrol

2. Diesel

3. L.P.G.

2. What do you feel great about your car when compared to other cars in the

Market?

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1. Fuel efficiency

2. Durability

3. Low maintenance

4. Sound quality

5. Safety

3. What kinds of offers do you like or expect from the dealer?

1. Free insurance

2. Special discount on sale of cars

3. Extending the service period

4. Finance availability with 0% interest

4. What more do you expect from your dealer?

1. Information about new cars

2. Information about service and mileage

3. Assistance regarding loans and insurance

4. Understanding customer needs

5. Where do you get your car serviced regularly?

1. At authorized service centre

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2. At a local workshop near my home

6. What other brand(s) will you seriously consider before making this car purchase?

1. Honda

2. MERC

3. SKODA

4. Volkswagen

7. Can you share your experience with after sale service support?

1. Very much satisfied

2. Satisfied

3. Ok

4. Not satisfied

8. Which bank do you prefer in getting financial help while purchasing a car?

1. ICICI

2. HDFC

3. SBI

4. Others

9. How do you feel when an unknown sales person approaches you by knowing your full

details to demonstrate about any product?

1. I will not respond

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2. Lost my privacy

3. Interested in knowing (if I feel a need of it)

10. What’s your opinion on a Brand Ambassador for the cars?

1. Very necessary

2. Not needed

3. Waste of money for manufacturer

11. What’s your opinion on the price list of VOLKSWAGEN cars?

1. Affordable by common man

2. Affordable only by rich man

3. Can’t say

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