1. A project report on advertising effectiveness of cold drinks Document Transcript1. Projectsformba.blogspot.

.com A PROJECT REPORT ONSTUDY OF ADVERTISING EFFECTIVENESS OF COLD-DRINKS IN BHOPAL SUBMITTED FOR THE PARTIALFULFILLMENT OF MASTER OF BUSINESSADMINISTRATION SUBMITTED TO:GUIDED BY:SUBMITTED BY: MILLENNIUM INSTITUTE OF TECH. &SCIENCE BARKATULLAH UNIVERSITY, BHOPAL YEAR2010Projectsformba.blogspot.com 12. Projectsformba.blogspot.com A PROJECT REPORT ONSTUDY OF ADVERTISING EFFECTIVENESS OF COLD-DRINKS IN BHOPAL SUBMITTED FOR THE PARTIALFULFILLMENT OF MASTER OF BUSINESSADMINISTRATION SUBMITTED BY Under the Guidance Of:FROM MILLENNIUM INSTITUTE OF TECH. & SCIENCEBARKATULLAH UNIVERSITY, BHOPAL YEAR2010Projectsformba.blogspot.com 23. Projectsformba.blogspot.com ACKNOWLEDGEMENTIt givesme immense pleasure to present this project report on entitledSTUDY OFADVERTISING EFFECTIVENESS OF COLD-DRINKS IN BHOPAL in partialfulfillment of post-graduate courseM.B.A.I take this opportunity to place on record my grateful thanksand gratitude to allthose who gave me valuable advice and inputs formy study. My study could nothave been completed if I had not beenable to get the reference materials from thecompany.I would befailing in my duty if I do not express my deep sense of gratitudetoMiss. SHAZIA QURESHI without her guidance it wouldnt have

2. been possiblefor me to complete this projectwork.Projectsformba.blogspot.com 34. Projectsformba.blogspot.com DECLARATIONI, Student of M.B.A. IV Sem fromMILLENNIUMINSTITUTE OF TECH. & SCIENCE, BHOPAL,Bhopal, declare that theproject work entitled STUDY OFADVERTISING EFFECTIVENESS OF COLD-DRINKS INBHOPAL was carried by me in the partial fulfillment of MBAprogramunder the University of Bhopal.This project was undertakenas a part of academic

curriculum according to theUniversity rulesand norms and it has not commercial interest and motive. It ismyoriginal work. It is not submitted to any other organization forany other purpose.Projectsformba.blogspot.com 45. Projectsformba.blogspot.com PREFACEThe research provides anopportunity to a student to demonstrate application ofhis/herknowledge. Skill and competencies required during the technicalsession.Research also helps the student to devote his /her skill toanalyze the problem tosuggest alternative solution, to evaluate themand to provide feasiblerecommendations on the provideddata.Although I have tried my level best to prepare this report anerror free report everyeffort has been made to offer the mostauthenticate position with accuracy.Projectsformba.blogspot.com 56. Projectsformba.blogspot.com CERTIFICATEThis is to certify thatthe AMRENDRA SINGH has completed project on EntitledSTUDY OF ADVERTISING EFFECTIVENESS OF COLD-DRINKS INBHOPALhich is based on data collected byresearcher.This report is completed under my supervision. It is onlyfor academic purpose andis a bonafide work done byresearch.Projectsformba.blogspot.com 6 3. 7. Projectsformba.blogspot.com INDEX 1. Introduction ofadvertising effectiveness 2. Introduction of advertising campaign 3.Research methodology A. Research design B. Data collection C.Sampling design D. Sampling technique E. Sampling size F. Area ofstudy 4. Market profile 5. Data analysis and interpretation 6. Finding7. Conclusion 8. Limitation 9. Suggestion 10.Bibliography11.QuestionnairesProjectsformba.blogspot.com 78. Projectsformba.blogspot.com .INTRODUCTIONProjectsformba.blogspot.com 89. Projectsformba.blogspot.comINTRODUCTION OFADVERTISING EFFECTIVENESSThe objectives of all businessare to makes profits and a merchandising concerncan do that byincreasing its sales at remunerative prices. This is possible, iftheproduct is widely polished to be audience the final consumers,channel membersand industrial users and through

convincingarguments it is persuaded to buy it.Publicity makes a thing or an ideaknown to people. It is a general term indicatingefforts at massappeal. As personal stimulation of demand for a product serviceorbusiness unit by planting commercially significant news about it ina publishedmedium or obtaining favourable presentation of it uponvideo television or stagethat is not paid for by the sponsor. On theother hand, advertising denotes a specific attempt to popularizeaspecific product or service at a certain cost. It is a method ofpublicity. It alwaysintentional openly sponsored by the sponsor andinvolves certain cost and hence ispaid for. It is a common form ofnon- personal communication about anorganisation and or itsproducts idea service etc. that is transmitted to a targetaudiencesthrough a mass medium. In common parlance the term publicityandadvertising are used synonymously.Projectsformba.blogspot.com9 4. 10. Projectsformba.blogspot.comWHAT IS ADVERTISING? Theword advertising is derived from the Latin word viz, "advertero""ad"meaning towards and "verto" meeting towards and "verto"meaning. "I turn"literally specific thing". Simply stated advertising isthe art "says green." Advertising is a generalterm for and all forms ofpublicity, from the cry of the street boy sellingnewspapers to themost celebrate attention attracts device. The object always is tobringto public notice some articles or service, to create a demand tostimulatebuying and in general to bring logethel the man withsomething to sell and the manwho has means or desires to buy".Advertising has been defined by different experts. Some of thequoteddefinition are : American marketing association has definedadvertising as "any paid formof non personal presentation andpromotion of ideas, goods or services by anidentified sponsor. Themedium used are print broad cast and direct. Stanton deserves that"Advertising consists of all the activities involved inpresenting to agroup a non- personal, oral or visual openly, sponsoredmessageregarding a product, service, or idea. This message called anadvertisement isdisseminated through one or more media and is paidfor by the identified sponsor.Projectsformba.blogspot.com 1011.

Projectsformba.blogspot.com Advertising is any paid form ofnon personal paid of presentation of ideasgoods or services by anidentified sponsor. Advertising is a "non- personal paid message ofcommercial significanceabout a product, service or company madeto a market by an identified sponsor. In developing an advertisingprogramme, one must always start byidentifying the market needsand buyer motives and must make five majordecisions commonlyreferred as 5M (mission, money message, media andmeasurement)of advertising.Basic Features of Advertising On the basis of variousdefinitions it has certain basic features such as :1. It is a mass non-personal communication.2. It is a matter of record.3. It persuades 5. buyers to purchase the goods advertised.4. It is a mass paidcommunication.5. The communication media is diverse such as print(newspapers and magazines)6. It is also called printed salesmanshipbecause information is spread by means of the written and printedwork and pictures so that people may be induced to act uponit.Projectsformba.blogspot.com 1112. Projectsformba.blogspot.comFUNCTIONS OF ADVERTISINGFor many firms advertising is the dominant element of thepromotional mix particulars for those manufacturers who produceconvenience goods such asdetergent, non prescription drugs,cosmetics, soft drinks and grocery products.Advertising is also usedextensively by maters of automobiles, home appliances,etc, tointroduce new product and new product features its uses itsattributes, ptavailability etc. Advertising can also help to convincepotential buyers that a firms productor service is superior tocompetitors product in make in quality, in price etc. it cancreatebrand image and reduce the likelihood of brand switching evenwhencompetitors lower their prices or offer some attractiveincentives. Advertising is particularly effective in certain otherspheres too such as :i) When consumer awareness of products orservice is at a minimum.ii) When sales are increasing for all terms inan industry.iii) When a product is new and incorporatestechnological advance not strong and.iv) When primary

buyingmotive exists.Projectsformba.blogspot.com 1213. Projectsformba.blogspot.comIt performance the followingfunctions :i) Promotion of salesii) Introduction of new productawareness.iii) Mass production facilitationiv) Carry out researchv)Education of people.TYPES OF ADVERTISING Broadly speaking,advertising may be classified into two categories viz.,product andinstitutional advertising.a) Product Advertising The main purpose of 6. such advertising is to inform and stimulate the marketabout theadvertisers products of services and to sell these. Thus typeofadvertising usually promote specific, trended products in such amanner as to makethe brands seam more desirable. It is used bybusiness government organizationand private nonbusinessorganizations to promote the uses features, images andbenefits oftheir services and products. Product advertising is sub-dividedintodirect action and indirect action advertising, Direct actionproduct advertisingwages the buyer to take action at once, ice heseeks a quick response to theadvertisement which may be to orderthe product by mail, or mailing a coupon, orhe may promptlypurchase in a retail store in response to prince reductionduringclearance sale.Projectsformba.blogspot.com 1314. Projectsformba.blogspot.com Product advertising is sub-dividedinto direct & indirect action advertising &product advertising aims atinforming persons about what a products is what itdoes, how it isused and where it can be purchased. On the other handselectiveadvertising is made to meet the selective demand for aparticular brand or type isproduct.b) Institutional Advertising : It isdesigned to create a proper attitude towards the sellers to buildcompanyimage or goodwill rather than to sell specific product orservice. Its purpose is tocreate a frame of mind and to implantfeeling favourable to the advertiserscompany. Its assignment is tomake friends for the institution or organization. It is sub-divided intothree categories : patronage, public, relations andpublic serviceinstitutional advertising.i) In patronage institutional advertising themanufacturer tells his prospects and

customer about himself hispolicies and lives personnel. The appeals to the patronage motivationof buyers. If successful, he convince buyers that his operationentitles him to the money spent by them.ii) Public relationsinstitutional advertising is used to create a favourable image of the 7. firm among employees, stock-holders or the general public.iii)Public service institutional advertising wages public support.c) OtherTypes :Projectsformba.blogspot.com 1415. Projectsformba.blogspot.com The other types are as follows : i)Consumer advertising ii) Comparative advertising iii) Reminderadvertising iv) Reinforcement advertisingADVERTISINGOBJECTIVES The long term objectives of advertising are broad andgeneral, and concernthe contribution advertising should make to theachievement of overall companyobjectives. Most companies regardadvert singly main objective as hat of provingsupport to personalselling and other forms of promotion. But advertising is ahighlyversatile communications tools and may therefore by used forachievingvarious short and long term objectives. Among theseobjectives are the following :1. To do the entire selling job (as inmail order marketing).2. To introduce a new product (by buildingbrand awareness among potential buyers).3. To force middlemen tohandle the product (pull strategy).4. To build brand preference 9bymaking it more difficult for middleman to sell substitutes).5. Toremind users to buy the product (retentivestrategy).Projectsformba.blogspot.com 1516. Projectsformba.blogspot.com6. To publicize some change inmarketing strategy (e.g., a price change, a new model or animprovement in the product).7. To provide rationalization (i.e.Socially acceptable excuses).8. To combat or neutralize competitorsadvertising.9. To improve the moral of dealers and/or sales people(by showing that the company is doing its share of promotion).10.To acquaint buyers and prospects with the new uses of the product(to extend the PLC).BENEFITS The functions of advertisement, andthat purpose its ethics, may bediscussion below :1. It leads tocheaper prices. "No advertiser could live in the highly competitive

8. arena of modern business if his methods of selling were more costlythan those of his rivals."2. It acquaints the public with the features ofthe goods and advantages which buyers will enjoy.3. It increasesdemand for commodities and this results in increased production.Advertising : a) Creates and stimulates demand opens and expandsthe markets; b) Creates goodwill which loads to an increase in salesvolume;Projectsformba.blogspot.com 1617. Projectsformba.blogspot.com c) Reduces marketing costs,particularly product selling costs. d) Satisfied consumer demands byplacing in the market what he needs.4. It reduces distributionexpenses in as much as it plays the part of thousands of salesman at ahome. Information on a mass scale relieves the necessity ofexpenditure on sales promotion staff, and quicker and widerdistribution leads to diminishing of the distribution costs.5. It ensuresthe consumers better quality of goods. A good name is the breath ofthe life to an advertiser.6. By paying the way for large scaleproduction and increased industrialization, advertising contributes itsquota to the profit of the companies the prosperity of the shareholderthe uplifts of the wage earners and the solution of he unemploymentproblem.7. It raises the standard of living of the general public byimpelling it to use to articles of modern types which may add to hismaterial well being. "Modern advertising has made the luxuries ofyesterday the necessities of today ..................... It is a positivecreative force in business. It makes two blades of grass grow in thebusiness world where one grew before.8. It establishes the goodwillof the concern for the test articles produced by it and in course oftime they sell like not cakes consumer search for satisfaction of theirneeds when they purchase goods what they want from its beauty,superiority, economy, comfort, approval, popularity, power, safety,convenience, sexual gratification and so on. ThemanufacturesProjectsformba.blogspot.com 17

9. 18. Projectsformba.blogspot.com therefore tries to improve thisgoodwill and reputation by knowing the buyer behaviour. To sum upit may be said that advertising aims at committing the producers,educating the consumer,

supplementing the salesman converting theproducer and the dealer to eliminate the competitor, but above all itis a link between the produce and the consumer.WHY & WHEN TOADVERTISE Advertising as a tool to marketing not only reachesthose who buy , but alsothose whose opinions or authority is countedfor example a manufacturer of marbletiles and building boardsadvertises not only to people who intend to build housesbut also toarchitect and engineers. While the manufacturers ofpharmaceuticalsproducts advertise to doctors as well as to thegeneral public. At time it isnecessary for a manufacturer or a concernto advertise things which it does not sellbut which when soldstimulates the sales of its own product. There are concernslikeelectric heaters, iron etc. because the use of these increases thedemand fortheir products. Advertising should be used only when itpromises to bring good result moreeconomically and efficiently ascompared to other means of selling. There aregoods for which muchtime and efforts are required in creating a demand bysendingsalesman to prospective buyers than by simply advertising them. Intheearly days of the cash register in America it was sold by speciallytrained salesmanwho called on the prospective users and had thedifficult task of convincing themProjectsformba.blogspot.com 1819. Projectsformba.blogspot.comthat they could no longer carry onwith the old methods, and that they urgentlyneeded a cash register.In our country certain publishers have found it less costly tosell theirbooks by sending salesman from house to house amongprospectivebuyers than to advertise them. In these two examples thecost of creating demandwould be too high if attempted byadvertising alone under such circumstancesadvertising is used to 10. make the salesman acceptable to the people they call upon toincreasethe confidence of the public in the house. Naturals when there aregoodprofits competitors will be attracted and they should be kickedout as and whensufficient capital is available by advertising on alarge scale. Immediate result maynot justify the increasedexpenditure but it will no doubt secure future sales.DESIGNINGADVERTISING CAMPAIGN: An

advertising is an organized seriesof advertising messages. It has beendefined as "a planned, co-ordinate series of promotional efforts built around acentral themeand designed to reach a specified goals." In other words, it isanorderly planned effort consisting of related but self containedand independentadvertisements. The campaign may appear in onemore media . it has single themeor keynote idea and a singleobjective or goal. Thus, "a unified theme of contentprovidespsychological continuity throughout the campaign while visual andoralsimilarity provide physical continuity. In short run, all campaignwant pre-determined psychological reaction in the long run,practically all campaigns havesales goal.The series of advertisementsused in the campaign must be integrated with thesales promotionalefforts and with the activities of the salesforce.Projectsformba.blogspot.com 1920. Projectsformba.blogspot.comCampaign vary in length some mayrun only for a few days, other for weeks, yetother for a season or theentire year. Usually a range of 3 to 6 months includesmanycampaigns. Many factors influences campaign length such ascompetitorsadvertising media, policies, seasonal falls curves of theproduct involved, the sizeof the advertising funds, campaignobjectives and the nature of the advertisersmarketingprogramme.OBJECTIVES OF CAMPAIGN The advertisingcampaign, especially those connected with the consumersaims atachieving these objectives : i) To announce a new product or 11. improve product. ii) To hold consumers patronage against intensifiedcampaign use. iii) To inform consumers about a new product use. iv)To teach consumers how to use product. v) To promote a contest or apremium offer. vi) To establish a new trade regional, and vii) Tohelp solve a coca regional problem.Projectsformba.blogspot.com 2021. Projectsformba.blogspot.com The institutional advertisingcampaign on the other hand, have these objectives. i) To create acorporate personality or image. ii) To build a company prestige. iii)To keep the company name before the public. iv) To emphasizecompany services and facilities. v) To enable company salesman tosee top executive consistently when making

sales calls, and vi) Toincrease friendliness and goodwill towards the company. Developingthe campaign programmes. The advertising campaigns arepreparedby the advertising agencies, which work an behalf of their clientswhomanufacture product or service enterprises, which have servicesto sell. The wordcampaign is used because advertising agenciesapproach their task with a sumBlanca of military fanfare in whichone frequently hears words like target audiencelogistics, zero in andtactics and strategy etc. The account executive co-ordinates the workin a campaign. The creation ofan advertising campaign starts with anexploration of consumers habits andpsychology in relation to theproduct. This requires the services of statisticaltrained in surveytechniques and of others trained in social psychology.Statisticiansselect samples for survey which are done by trained interviewerswhovisits individuals, included in the sample and ask question tofind out about theirtaste and habits.Projectsformba.blogspot.com 2122. Projectsformba.blogspot.com This enquiry often leads to achange in a familiar product. For instancebathing soap may come inseveral new colours or cigarette in a new packet ortalcum powder inanother size. Such interviews are often quite essential to find out the 12. appeal of advertisingmessage for a product that would be mosteffective with consumers. David Ogilvy describes a consumerssurvey to find out the most meaningfulbenefit in which women areinterested when they buy a face cream. The largestpreference asgiven to "Cleans deep into pores" followed in order of importancebyprevent dryness, "is a complete beauty treatment, recommendedby skin doctors"makes skin look younger contains estrogenichormones, pasteurized for purity,prevent skin form aging, smoothour wrinkles ogilvy concludes, form this votingcome one of HelenaRubinsteins most successful face creams. We christened itdeepcleanser, thus, building the winning form into name of the product.After getting the data the account executive puts together theessentialelements of his clients brief, interprets the research

findingsand draws up what hecalls the "advertising strategy".STAGE INADVERTISING CAMPAIGN Several steps are required todeveloped an advertising campaign the numberof stages and exactorder in which they are carried out may vary according toanorganisations resources, the nature of its product and the types ofaudiences to bereached. The major stages/step are :1. Identifying andanalyzing the advertising.2. Defining advertisingobjects.Projectsformba.blogspot.com 2223. Projectsformba.blogspot.com3. Creating the advertisingplatform.4. Determining the advertising appropriation.5. Selectionmedia plan.6. Creating the advertising message.7. Evaluating theeffectiveness of advertising.8. Organizing of advertising campaign.1.Identifying & Analyzing the Advertising target : Under this step it isto decided as to whom is the firm trying to reach withthe message.The advertising target is the group of people towardswhichadvertisements are aimed at four this purpose completeinformation about themarket target i.e. the location and geographicallocation of the people, thedistribution of age, income, sex, 13. educational level, and consumers attitudesregarding purchase anduse both of the advertising product and competingproducts is neededwith better knowledge of market target, effectiveadvertisingcampaign can be developed on the other hand, if theadvertising target is notproperly identified and analyzed thecampaign is does likely to be effective.2. Determining theadvertising objectives : The objectives of advertisement must bespecifically and clearly defined inmeasurable terms such as "tocommunicate specific qualities about a particularsproduct to gain acertain degree of penetration in a definite audience of agivenProjectsformba.blogspot.com 2324. Projectsformba.blogspot.comsize during a given period of time",increase sales by a certain percentage orincrease the firms marketshares." The goals of advertising may be to : i) Create a favourablecompany image by acquainting the public with the services offeredavailable to the employees and its achievements. ii) Createconsumers or distributor awareness by encouraging requestsproviding information about the types of products

sold; providinginformation about the benefits to be gained from use of thecompanys products or services; and indicating how product (orservices) can be used; iii) Encourage immediate sales byencouraging potential purchasers through special sales contests,getting recommendation of professional people about companysproducts etc. iv) It secures action by the reader through associatingideas, repetition of the same name in different contexts, immediateaction appeal.3. Creating the Advertising platform : An advertisingplatform consists of the basic issues or selling points thatanadvertiser wishes to include in the advertising campaign. A singleadvertisement inan advertising campaign may contain one or moreissues in the platform. Amotorcycle producers advertising platformshould contain issues which are ofimportance to consumers filling 14. and such issues also be those which thecompetitive product do notposses.Projectsformba.blogspot.com 2425. Projectsformba.blogspot.com4. Determining the AdvertisingAppropriation: The advertising appropriation is the total amount ofmoney which marketerallocates. For advertising for a specific timeperiod. Determining the campaignbudget involves estimating nowmuch it will cost to achieve the campaignsobjectives. If thecampaign objectives are profit relating and stated quantitatively,thenthe amount of the campaign budget is determined by estimating theproposedcampaigns effectiveness in attaining them. If campaignsobject is to build aparticular type of company image, then there islittle basis for predicting either thecampaigns effectiveness ordetermining the budget required.5. Selecting the Media : Mediaselection is an important since it costs time space and moneyvariousfactors influence this selection, the most fundamental beingthe nature of the targetmarket segment, the type of the product andthe cost involved. The distinctivecharacteristics of various media arealso important. Therefore management shouldfocus its attention onmedia compatibility with advertising objectives. Media Form1. PressAdvertising or Printi) Newspapers City, Small town, Sundays, Daily,weekly, Fortnightly, quarterlies, financial and annuals, English,vernacular or regional

languages.ii) Magazines General or special,illustrated or otherwise, English, Hindi,Projectsformba.blogspot.com2526. Projectsformba.blogspot.com Regional language.iii) Trade &Technical Journals, Industrial Circulated all over the country yearbooks, commercial, directories, and among the industrialist andtelephone, Directories, references business magnates. books &annuals.2. Direct Mail Circulars, catalogues, leaflets, brochures,booklets, folders, colanders, blotters, diaries & other printed 15. material.3. Outdoor or Traffic Poster and bills on walls, railwaysstations platforms outside public buildings trains, buses.4. Broadcastor radio and T.V. Spot, Sectional or national trade cost5. PublicityMovie Slides and films non theatrical and documentary films metalplates and signs attaches to trees.6. House to house Sampling ,couponing, free gifts, novelties, demonst- rations.7. Dealer aidsCounter and widows display demonstration given by retailer or theadvertises goods.8. Internet Today, Internet is a big spot foradvertising.So these are the media of the advertising campaign of theselecting of the media.Projectsformba.blogspot.com 2627. Projectsformba.blogspot.com6. Creating the AdvertisingMessages : This is an important stage of advertising campaign. Thecontents of themessage has to be very carefully drafted in theadvertisement. Characteristics ofperson in the advertising targetinfluence the message content and form. Anadvertisers must usewords, symbols and illustration that are meaningful, familiarandattractive to those persons. The type of media also influence thecontent andform of the message.7. Evaluating the Effectiveness ofAdvertising : The effectiveness of advertising is measured for avariety of reasons : a) To determine whether a campaignaccomplished its advertising objects. b) To evaluate the relativeeffectiveness of several advertisements to ascertain which copy,illustrations or layout is best. c) To determine the strengths andweaknesses of various media and media plans. In other words,measuring advertising effectiveness is needed to determinewhetherproposed advertisement should be used and if they will

be now theymightbe improved; and whether going campaign should be stopped,continued orProjectsformba.blogspot.com 2728. Projectsformba.blogspot.comchanged. In accomplishing thesepurposes, pretests and post test are conducted.The former tests 16. before exposing target consumers to advertisements and theletterafter consumers have been exposed to advertisements and theletter afterconsumers have been exposed to advertisements. For aneffective advertising programme, the advertising manager requiresabasic understanding of the medium that is going to carry it. Foreffectively using advertising the management must test advertisingtoknow which of the advertisement to know which of theadvertisement have provedprofitable and why as compared toothers.Projectsformba.blogspot.com 2829. Projectsformba.blogspot.com COMPANYPROFILEProjectsformba.blogspot.com 2930. Projectsformba.blogspot.comMARKET PROFILE(CocaCola)Brands of Coca- Colai) Coca Colaii) Thums-upiii) Limcaiv)Fantav) Maazavi) Maaza Tetravii) SpriteFlavours of the brand :i)ColaProjectsformba.blogspot.com 3031. Projectsformba.blogspot.comii) Lemoniii) Sodaiv) Orangev)Mangovi) Clear LemonSize of the Coca Cola cold drinks availablein marketi) 200 ml Bottles (RGB Glasses)ii) 300 ml Bottles (RGBGlasses)iii) 500 ml Bottles (RGB Glasses)iv) 1 Litre (PVCBottles)v) 1.5 Litre (PVC Bottles)vi) 2 Litre (PVC Bottles)Sales ofCoca Cola Cold drinksCoca Cola Weekly Monthly YearlyColddrinks (in carets) (in carets) (in carets)Coca Cola 520 184022400Fanta 250 1030 12900Thums-up 350 135018500Projectsformba.blogspot.com 3132. Projectsformba.blogspot.comLimca 380 1210 16300Maaza Tetra80 380 6200Sprite 70 280 5000Maaza 120 690 10000(Primarydata)There is more consumption of Coca Cola and has 70% marketshare in theYamunanagar city and Coca Cola is having maximumconsumption and after thatThumpsup and after it Limca cold drink

17. in the market and all the products hasgood sale but less thanthese.Brands of Pepsii) Pepsi Colaii) Mirinda Lemoniii) MirindaOrangeiv) Pepsi Sodav) Pepsi AppleFlavours of the brand :i) Colaii)LemonProjectsformba.blogspot.com 3233. Projectsformba.blogspot.comiii) Orangeiv) Sodav) AppleSize ofthe Pepsi cold drinks available in marketvi) 200 ml Bottles (RGBGlasses)vii) 300 ml Bottles (RGB Glasses)viii) 500 ml Bottles (500pt. Bottles)ix) 1 Litre (PVC Bottles)x) 1.5 Litre (PVC Bottles)xi) 2Litre (PVC Bottles)Sales of Pepsi Cold drinksPepsi Weekly MonthlyYearlyCold drinks (in carets) (in carets) (in carets)Pepsi 430 175021600Mirinda Lemon 390 1180 15400Mirinda Orange 245 100013600Pepsi Soda 126 470 6000Pepsi Apple 120 4005000Projectsformba.blogspot.com 3334. Projectsformba.blogspot.com(Primary Data) The consumption ofPepsi cola, after this sale of Mirinda Lemon is there andafter itMirinda Orange is there and the market share is less of Pepsiincomparison of Coca Cola.Projectsformba.blogspot.com 3435. Projectsformba.blogspot.com OBJECTIVES OF THESTUDYProjectsformba.blogspot.com 3536. Projectsformba.blogspot.com OBJECTIVES OF THESTUDYFollowing are the objectives of the study:1. To know themost effective media of advertisement2. To find out the reasons forliking the advertisement of cold drinks.3. To find out the mostpopular slogan of advertisement regarding colddrinks.Projectsformba.blogspot.com 3637. Projectsformba.blogspot.com Research MethodologyResearchMethodologyResearch is voyage from known tounknownProjectsformba.blogspot.com 37

18. 38. Projectsformba.blogspot.comResearch is a procedure of logicaland systematic application of the fundamentalsof science to thegeneral and overall questions of a study and scientifictechniquewhich provide precise tools, specific procedure andtechnical rather thanphilosophical means for getting and ordering thedata prior to their logical analysisand manipulation. Different type ofresearch designs is available depending uponthe nature of researchproject, availability of able manpower

andcircumstances.Methodology 1. Research Design: The researchdesign is the blueprint for the fulfillment of objectives and answeringquestions. It is a master plan specifying the method and proceduresfor collecting and analyzing needed information. o DescriptiveResearch is used in this study as the main aim is to describecharacteristics of the phenomenon or a situation. 2. Data CollectionMethods: The source of data includes primary and secondary datasources. Primary Sources: Primary data has been collected directlyfrom sample respondents through questionnaire and with the help ofinterview. Secondary Sources: Secondary data has been collectedfrom standard textbooks, Newspapers, Magazines & Internet. 3.Research Instrument: Research instrument used for the primary datacollection is Questionnaire.Projectsformba.blogspot.com 3839. Projectsformba.blogspot.com 4. Sample Design: Sample designis definite plan determine before any data is actually obtaining for asample from a given population. The researcher must decide the wayof selecting a sample. Samples can be either probability samples ornon-probability samples. Sampling Technique: Convenience SampleSize: 50 Respondents. Area of Study: MP nagar, new market,Piplani, Nehru Nagar.Projectsformba.blogspot.com 3940. Projectsformba.blogspot.com DATA ANALYSIS ANDINTERPRETATIONProjectsformba.blogspot.com 40 19. 41. Projectsformba.blogspot.com DATA ANALYSIS ANDINTERPRETATION TABLE 4.1RESPONDENTSCLASSIFICATION ACCORDING TO AGEAge (in years) No. ofrespondents Percentage11-20 22 4421-40 25 5041-60 3 6Total 50100 100 90 80 70 60 20-Nov 50 21-40 40 41-60 30 Total 20 10 0No. of respondents PercentageTable 4.1 shows that 44% of therespondents are in the age group of 11-20, 50%are in the age groupof 21-40 and 6% are in the age group of 4160.TABLE4.2Projectsformba.blogspot.com 4142. Projectsformba.blogspot.comRESPONDENTSCLASSIFICATION ACCORDING TO SEXSex No. of respondentsPercentageMale 30 60Female 20 40Total 50 100 100 80 60 MaleFemale 40 Total 20 0 No. of

respondents Percentage Table 4.2shows that 60% of the respondents are males and 40% of themarefemalesTABLE 4.3Projectsformba.blogspot.com 4243. Projectsformba.blogspot.comRESPONDENTSCLASSIFICATION ACCORDING TOEDUCATIONALQUALIFICATIONQualification No. ofrespondents PercentageIlliterate 0 0Below Matric 0 0Matric 510Graduate 29 58Post graduate 16 32Total 50 100 60 50 40 IlliterateBelow Matric 30 Matric 20 Graduate Post graduate 10 0 No. ofrespondents Percentage Table 4.3 reveals that out of 50 respondents5 are matriculate and 29 are Graduateand rest of them 16 are postgraduate.TABLE 4.4DRINKING OF COLDDRINKProjectsformba.blogspot.com 4344. Projectsformba.blogspot.comDo you take cold drinks No. ofrespondents PercentageYes 50 100No 0 0Total 50 100 100 90 80 7060 Yes 50 No 40 Total 30 20 10 0 No. of respondents PercentageTABLE 4.5FREQUENCY OF TAKING COLD DRINKSHOW 20. FREQUENTLY No. of respondents PercentageYOUDRINKProjectsformba.blogspot.com 4445. Projectsformba.blogspot.comOnce a day 15 30Twice a day 24More than twice 1 2Not regular drunker 32 64Total 50 100 100 9080 70 60 Once a day 50 Twice a day 40 More than twice 30 Notregular drunker 20 Total 10 0 No. of Percentage respondents Table4.5 reveals that 30% of the respondents drink it once a day, 4%twicea day, 2% more than twice and 32% drink it noregularly.TABLE 4.6NAME OF THE COLD DRINKSAVAILABLE IN MARKETName of cold drinks No. of respondentsPercentageCoca cola - -Pepsi - -Fanta - Projectsformba.blogspot.com 4546. Projectsformba.blogspot.comLimca - Mirinda - -Thums-up - -Canada dry - -Maaza - -Dew - -All of above 50 100Total 50 100 10080 60 East 40 West North 20 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Table4.6 reveals that all of the respondents are of the view that alltheabove mentioned cold drinks are available in the market.TABLE4.7PREFERENCE OF COLD DRINKWhich cold drink you No. ofrespondents Percentagelike mostCoca cola 12 24Pepsi 12 24Fanta

12Limca 7 14Mirinda 1 2Projectsformba.blogspot.com 4647. Projectsformba.blogspot.comThums-up 10 20Canada dry 48Maaza 3 6Dew - -Total 50 100 100 80 60 East 40 West North 20 01st Qtr 2nd Qtr 3rd Qtr 4th Qtr Table 4.7 indicate that out of 50respondents 12 like Coca cola, 12 like Pepsi, 7like Limca, 1 likeFanta, 1 like Mirinda, 10 like Thumsup, 4 like Canada dry and3 likeMaaza.TABLE 4.8FLAVOURS OF COLD DRINKSFlavours No. ofrespondents PercentageCola 30 60Lemon 7 14Orange 7 14Mango 24Others 4 8Total 50 100Projectsformba.blogspot.com 47 21. 48. Projectsformba.blogspot.com 100 90 80 70 Cola 60 Lemon 50Orange 40 Mango 30 Others 20 Total 10 0 No. of respondentsPercentage Table 4.8 shows that out of 60% of the respondents likethe cola flavour of colddrink, 14% like the Lemon flavour and samepercentage of respondents like theorange flavour of colddrink.Projectsformba.blogspot.com 4849. Projectsformba.blogspot.comTABLE 4.9 ADVERTISEMENTOF COLD DRINKDo you think No. of respondentsPercentageadvertisement of colddrink is requiredYes 48 96No 24Total 50 100 100 80 60 Yes No 40 Total 20 0 No. of respondentsPercentage Table 4.9 indicate that 96% of the respondents are of theview that theyhave been the advertisement of the cold drink they likemost while 4% shows thatthey dont have seen the advertisementthey like most .TABLE 4.10Projectsformba.blogspot.com 4950. Projectsformba.blogspot.com MEDIA OFADVERTISEMENTTHROUGH WHICH No. of respondentsPercentageMEDIA YOU HAVESEEN IT?TV 46 92Newspaper 24Magazine 1 2Other 1 2Total 50 100 100 80 TV 60 NewspaperMagazine 40 Other 20 Total 0 No. of respondents Percentage Table4.10 reveals that 92% of the respondents are of opinion that theyhaveseen the advertisement on TV while 4% are of the opinion thatthey have seen theadvertisement through newspaper.TABLE4.11NO. OF ADVERTISEMENTProjectsformba.blogspot.com 5051. Projectsformba.blogspot.comHow many No. of

respondentsPercentageadvertisements youseen are of the mostlikely cold drinkby you1 11 222 14 283 11 224 14 28Total 50 100 100 80 1 60 2 3 404 20 Total 0 No. of respondents Percentage Table 4.11 shows thatout of the 50 respondents 11 are of view that there is 1type ofadvertisement and other says that there are more than onetype.TABLE 4.12 SLOGAN OF COLD DRINKSlogan of cold drink 22. No. of respondents Percentagewhich youlikeProjectsformba.blogspot.com 5152. Projectsformba.blogspot.comTaste the thunder 12 24Yara Datashan 14 28Yeh dil mange more 16 32Jo chahe ho jaye, coca 816cola enjoyTotal 50 100 100 90 Taste the thunder 80 70 Yara Datashan 60 50 Yeh dil mange more 40 30 Jo chahe ho jaye, 20 cocacola enjoy 10 Total 0 No. of Percentage respondents Table 4.12shows that out of 50 respondents 12 like the slogan taste thethunder,14 like Yara da tashan, 16 like yeh dil mange more and 8like the slogan Jochahe ho jaye coca cola enjoy.TABLE 4.13REASON FOR LIKING THE ADVERTISEMENTWhy you likeNo. of respondents PercentageadvertisementIts theme and making is30 60Projectsformba.blogspot.com 5253. Projectsformba.blogspot.comappealableIt has film stars 714Because of good music 7 14Other reasons 6 12Total 50 100 10090 Its theme and making 80 is appealable 70 It has film stars 60 50Because of good 40 music 30 20 Other reasons 10 0 Total No. ofPercentage respondentsTable 4.13 shows that majority of therespondents like the advertisement due to itstheme while majority ofthe respondents like the advertisement due to its film starsand goodmusic.TABLE 4.14EFFECT OF ADVERTISEMENT ONCONSUMPTION OF COLD DRINKDo you think ads. No. ofrespondents PercentageEffect the consumptionof cold drinkYes 2346No 17 354Projectsformba.blogspot.com 5354. Projectsformba.blogspot.comCannt say 10 20Total 50 100 400350 300 250 Yes 200 No 150 Cannt say Total 100 50 0 No. ofrespondents Percentage Table 4.14 shows that 46% of therespondents are of the view that advertisementforced them toconsume product more 34% of them has

view thatadvertisementdont force them to consume the product while 20% of 23. them cannot say anythingabout it.TABLE 4.15 BEST MEDIA OFADVERTISEMENTWhich Media Presently No. of respondentsPercentageIs More EffectivelyTV 50 100Newspaper - Magazine - -Others - -Total 50 100Projectsformba.blogspot.com 5455. Projectsformba.blogspot.com Table 4.15 reveals that 100% ofthe respondents are of the view thatpresently the TV is mosteffective media of advertisement.TABLE 4.16NECESSITY OFADVERTISEMENTDO YOU THINK THE No. of respondentsPercentageADVERTISEMENT ISNECESSARY FORCOLDDRINKS?Necessary 14 28Very necessary 34 68Cant say 2 4Total50 100Projectsformba.blogspot.com 5556. Projectsformba.blogspot.com 100 90 80 70 60 Necessary 50Very necessary 40 Cant say 30 Total 20 10 0 No. of respondentsPercentage Table 4.16 shows that highest number of respondents areof the view thatadvertisement is very necessary for cold drinks whilefew respondents are of theview that advertisement isnecessary.TABLE 4.17 EFFECTIVENESS OF EXPENDITUREINCURRED ON ADVERTISEMENTDoes expenditure No. ofrespondents Percentageshould be incurred onadvertisementYes 4386No 2 4Cant say 5 10Total 50 100Projectsformba.blogspot.com 5657. Projectsformba.blogspot.com 100 90 80 70 60 Yes 50 No 40Cant say 30 Total 20 10 0 No. of respondents Percentage Table 4.17shows that 86% of the respondents are of the view thattheexpenditure incurred on advertisement is effective in adding theprofit while 4%denied the same and 10% did not reply.TABLE4.18REASONS FOR DIFFERENCE OF ADVERTISEMENTEFFECTIVENESSWHICH REASON No. of respondentsPercentageYOU FIND FOR THEDIFFERENCEOFADVERTISEMENTEFFECTIVENESSEducation 20 40Liking

24. 10 20Standard of Living 10 20Level of Development 1020Projectsformba.blogspot.com 5758. Projectsformba.blogspot.comTotal 50 100 100 80 Education 60Liking Standard of Living 40 Level of Development 20 Total 0 No.of respondents Percentage Table 4.18 shows that 40% of therespondents say education is one of themain reason of Advertisementeffectiveness while equal % of the respondents arein the favour oflikings, standars of living and level ofdevelopmentProjectsformba.blogspot.com 5859. Projectsformba.blogspot.comTABLE 4.19ADDEFFECTIVENESS AND IMPROVEMENT INADVERTISEMENTWILL THE STUDY No. of respondentsPercentageOF EFFECTIVENESSWOULDCONTRIBUTETOIMPROVEMENT OFPRESENTADVERTISEMENTYes 4590No 1 2Cannot say 4 10Total 50 100 100 80 60 Yes No 40 Cannotsay Total 20 0 No. of respondents PercentageTable 4.19 shows thatthe majority of the respondents are of the view that the studyofeffectiveness contributes the improvement in presentadvertisement.TABLE 4.20NECESSITY OF ADVERTISEMENTEFFECTIVENESSProjectsformba.blogspot.com 5960. Projectsformba.blogspot.comIS ADVERTISEMENT No. ofrespondents PercentageEFFECTIVENESS ISNECESSARYFORCOMPANY?Yes 48 96No 1 2Cant say 1 2Total 50 100 100 9080 70 60 Yes 50 No 40 30 Cant say 20 Total 10 0 No. of PercentagerespondentsTable 4.20 reveals that majority of the respondents saythat the advertisementeffectiveness is necessary while same did notreplied.TABLE 4.21USERS OF ADVERTISEMENTEFFECTIVENESSTHE USE STUDY OF No. of respondentsPercentageEFFECTIVENESS ISProjectsformba.blogspot.com 60

25. 61. Projectsformba.blogspot.comFOR WHOM?For company 3468For employees 1 2For customers 15 30None of these - -Total 50100Table 4.21 indicates that 68% of the respondents are of the viewthat the study ofeffectiveness is meant for company while 30% saythat it is meant for customers.Projectsformba.blogspot.com 6162.

Projectsformba.blogspot.com OBSERVATIONS & FINDINGSFINDINGSAfter going through all the project and the collected data,I found that:Projectsformba.blogspot.com 6263. Projectsformba.blogspot.comP 84% of the respondents said thatTV is the most effective media of advertisement.a 60% of therespondents said that they like the advertisement of cold drinksbecause of its theme whereas, 14% said that they like celebrities inadvertisement.a Some 32% of the respondents said that yeh dilmaange more is the most popular slogan whereas 28% of therespondents said that yara da tashan is the popular slogan.pMajority of respondents are of the view that advertisement is verynecessary for cold drink.f Majority of respondents sees theadvertisement of the cold drink they like most.m Majority of therespondents like cola flavor of cold drinkM Equal number ofrespondents like the brand of Coca Cola andPepsiProjectsformba.blogspot.com 6364. Projectsformba.blogspot.comCONCLUSIONCONCLUSIONProjectsformba .blogspot.com 6465. Projectsformba.blogspot.comIn last conclude that majority of therespondents said that TV is the most effectivemedia foradvertisement of cold drinks and the celebrities and the slogans intheadvertisement effect the consumers.SUGGESTIONSWe reachedsome suggestions :W Advertisement should not be too expensive,because the advertisement leads and increase the prize of the 26. product.a Media should be selected according to the choice ofcustomers.M In rural areas media should be according to the choiceof the people.I To give more attention in making the advertisementto make it effective for the sale of cold drink.s Price should bedecreased so as to attract the consumers to use product more.P Togive attention on the weak media of advertisement so that theconsumers comes to know about the product.c It should be attractiveone so that people are attracted toward theadvertisement.LIMITATIONSProjectsformba.blogspot.com 6566. Projectsformba.blogspot.comP The project relied mainly on theprimary data.T Consumer give very unclear picture.C We have alimited time.W The study is based on limited sample.T It begin myfirst attempt to

undertake such a study, thus the inexperience is also aobstacle to accomplish the project in a proper way.a It was alsodifficult to get proper information from the people because they wereindulging in some other activities.Projectsformba.blogspot.com 6667. Projectsformba.blogspot.comBIBLIOGRAPHYProjectsformba.blogspot.co m 67Aaker David A. etc. advertising Management 4th ed, New Delhi,prentice Hall of India 1985.Journals: Economic PoliticalWeeklyMagazines and Newspapers:Projectsformba.blogspot.com68 68. Projectsformba.blogspot.com Kothari, C.R (2003):Research Methodology (II Edition), New Age International Pvt.Ltd. Khan and Martin (2003): Sales and Distribution (I Edition),Anurag Jain publishing company, New Delhi Rajan Saxena(2003): Marketing Management (II Edition), Tata McGraw - Hillpublishing company Ltd., New Delhi 27. 69. Projectsformba.blogspot.com QUESTIONNARIESADVERTISEMENTEFFECTIVENESSProjectsformba. blogspot.com 6970. Projectsformba.blogspot.com OF COLD DRINKS BACKGROUND INFORMATIONI) Name :__________________________________II) Age :__________________________________III) Qualification :IV) 1.Literate 2. Illiterate if literate ? 1. Below Matric 2. Matric 3.Graduate 4. Post GraduateV) Profession :__________________________________VI) Address :___________________________________________________________ _________VII) Size of family :__________________________________1). Do you take cold drink? a. Yes b. No2). How frequently you take cold drink ? a. Once a dayb. Twice a day c. More than twice d. Not regular3). Which are thedifferent cold drinks available in the market ? a. Coca Cola b. Pepsic. Limca d. Fanta e. Thums-up f. Mirinda g. Limca h. Maaza i.Canada Dry j. All of these4). Which cold drink you like most ? a.Coca Cola b. Pepsi c. Limca d. Fanta e. Thums-up f. Mirinda g.Limca h. Maaza i. Canada Dry j. All of these5).

Which flavour ofcold drink you like most ?Projectsformba.blogspot.com 7071. Projectsformba.blogspot.com a. Cola b. Lemon c. Mango d.Orange e. Other6). Have you seen the advertisement of cold drinkyou like most ? a. Yes b. No7). Through which media you have seenit? a. T.V. b. News Paper c. Magazine d. Others8). How many typesof advertisement of you preferred brand of cold drink arethere? a. 1b. 2 c. 3 d. 49). Which slogan of cold drink you like most ? a. Tastethe Thunder b. Yara Da Tashan c. Yeh Dil Mange More d. Jo chaheho Jai COCA-COLA enjoy10). Why do you like the advertisement ?a. Because it has film stars ? b. Because of Good music c. Its theme 28. and making is appealable. d. Any other reason.11). Do you think thatadvertisement has forced you to consume product more ? a. Yes b.No12). Which media is presenting the advertisement is necessary forsale of colddrink ? a. T.V. b. News Paper c. Magazine d. Others13).Do you think the advertisement is necessary for sale of cold drink ?a. Necessary b. Very Necessary c. Not Necessary d. CantSayProjectsformba.blogspot.com 7172. Projectsformba.blogspot.com14). The expenditure incurred onadvertisement of cold drink is such effectivethat it adds to profit ? a.Yes b. No c. Cant Say15) Which reason you find for the differenceof advertisement effectiveness ? a. Education b. Likings c. Standardof Living d. Level of Development16) Is the study of effectivenesswould contribute to improvement in presentadvertisement ? a. Yes b.No c. Cant Say17) Is advertisement effectiveness is necessary forcompany ? a. Yes b. No c. Cant Say18) What do you think the useof study of effectiveness is for who? a. For Company b. ForEmployees c. For Customers d. None oftheseProjectsformba.blogspot.com 72 29. 2. Projectsformba.blogspot.com INTRODUCTION OF THEREPORTSTATEMENT OF PROJECT:The statement of our topicisEFFECTS OF ADVERTISEMENT ON THE BUYINGBEHAVIOUR OFFEMALESSo at the very beginning, well definethat what is the

advertisement, its history, itsMedias and what are thereasons to advertise.WHAT IS ADVERTISEMENT?PAID,MEDIATED PRESENTATION OF INFORMATION ABOUTSERVICES,PRODUCTS, OR IDEAS WITH THE SPECIFICGOAL OF INFLUENCINGCONSUMERS OR THE PUBLIC.THEADVERTISER PURCHASES TIME (RADIO, TELEVISION,CABLE) ORSPACE (PRINT PUBLICATIONS NEWSPAPERS,MAGAZINES, SHOPPER)ORON BILLBOARDS OR OTHERDISPLAY OPPERTUNITIES SUCH AS BUSCARDS.ADVERTISING IS EVERYWHERE In our homes In thesupermarkets On the streets On airplanes On trains Even inschools, colleges and universities. WHY ADVERTISEMENT ISTHE GOAL OF INFLUENSING ADVERTISEMENT IS APERSUASIVE MESSAGE HERES why my product (or service oridea) is better than your alternatives If you buy my product (orservice or ide a) your life will be improved in thiswayProjectsformba.blogspot.com 23. Projectsformba.blogspot.comProjectsformba.blogspot.com 34. Projectsformba.blogspot.com HISTORY OF ADVERTISEMENTHERE IS A BRIEF HISTORY OF ADVERTISEMENT IN THEWORLD Johannes Gutenberg 1441 Inventiuon of Movable TypeVolney Palmer 1841 First Advertising Agency Robert Bonner 1850First Great Advertising Campaign "Doctor" Drake 1860- PatentMedicine Lydia Pinkham 1890 Patent Medicine George Rowell1869 American Newspaper Directory Francis W. Ayer 1875 OpenContract John Powers 1880 First Copywriting "Superstar" AdolphusGreen 1890 Branding J. Walter Thompson 1885 The AccountExecutive Cyrus Curtis Growth of Magazine AdvertisingEarnestElmo Caulkins 1895 Art Direction John E. Kennedy 1904 Reason-Why Copy Albert Lasker 1904 The Modern Advertising AgencyClaude C. Hopkins 1906 "Scientific" Advertising TheodoreMcManus 1915 Impressionism Social Sciences inAdvertisingStanley & Helen Resor 1920 Women in AdvertisingAdvertising Research Raymond Rubicam 1923 CreativeExperimentation 1926 Commercial Radio Leo Burnett 1930-

Inherent Drama 1947 Commercial Television Rosser Reeves 1950Unique Selling Proposition David Ogilvy 1950 Brand Image MarionHarper 1950-60 Agency Mergers & Integrated Services WilliamBernbach 1960 Creative Revolution Jay Chiat 1990- Advertising inthe 90sCreativity & Brand Building Hal Riney FIRST 30. ADVERTISING AGENCY INPAKISTANProjectsformba.blogspot.com 45. Projectsformba.blogspot.com Manhattan PakistanHead : Col.Aizaz ul WaheedAffiliation : NoneBrief Intro : We were one of thefirst Pakistaniowned ad agencies to enter Pakistans advertisingarena and have remained one of the front- runners ever since. TodayMPL ranks as one of the top agencies in terms of business volumeand client portfolio. Serving the promotional needs of numerousclients both Above The Line (ATL) and through Below The Line(BTL) for the last four decades, Manhattan Pakistan has now enteredin its fifth decade with the fervor to build brands through consumerinsights by converting buyers into brand believers.History : We firstsaw the light of day in 1954, establishing our roots in Karachi,Pakistan. We operate with a strong family feeling, with 100professionals steering the agency on a straight course towardssuccess! We maintain the delicate balance betweenconceptualization, to product positioning and an effectiveperformance in the marketplace. We have helped influence consumerpreferences and changing lifestyles. We are ManhattanPakistan!Founded : 1954Top : InstaphoneClients Askari Bank PTVBurraq Telecom PTCL NOTE: DETAILS OF TOP ADVERTISINGAGENCIES IN PAKISTAN ARE ATTACHED AT THE END OFREPORT IN ANNEXURES. Projectsformba.blogspot.com 56. Projectsformba.blogspot.com MAJOR ADVERTISINGMEDIASIN 1970S FOLLOWING MASS MEDIAS BOCAMEMATURE IN THEWHOLEWORLDProjectsformba.blogspot.com 67. Projectsformba.blogspot.com NEWS PAPERS (DOMINATE) TELEVISION DIRECT MAIL RADIO MAGAZINES OTHERS (BILL BOARDS, TRADE PRESS ETC) IN 1980s,CABLE ADVERTISING

GREW AND IN 1990s, INTERNETADVERTISING GREW. SPECIFIC MEDIA WITHIN EACHGENERAL MEDIA TYPETelevision Yellow PagesNewspaperMagazine Major Kinds of MediaDirect Mail Outdoor Radio InternetMAJOR ADVERTISING MEDIAS IN PAKISTAN IN THEBOUNDARIES OF PAKISTAN, FOLLOWING MEDIAS AREWORKING: Projectsformba.blogspot.com 78. Projectsformba.blogspot.com o TV o Radio o Media BuyingHouses o Media Representatives o Media Monitoring Agencies oMedia Marketing Firms o New Media Companies o Internet ServiceProviders o Major English Dailies o Major Urdu Dailies o EnglishEveningers o Urdu Eveningers o English Magazines o UrduMagazinesProjectsformba.blogspot.com 8 31. 9. Projectsformba.blogspot.com TYPES OFADVERTISEMENT:Product Advertising: In which manufacturerswants to focus on productsProjectsformba.blogspot.com 910. Projectsformba.blogspot.com For example: Head & shouldersshampoo.Institutional Advertising When focus on brand name of thecompany For example: McDonald, KFC.Informative AdvertisingThe purpose of the companies to give some sort of information Forexample Telenor informed earlier to its launching ofnetworkPersuasive Advertising When any company launches a newproduct For example When warid telecom introduces any newpackageReminder Advertising Telling the consumer that there is alsoadditional attributes in our product For example When Pepsiintroduces additional taste in bottles as Pepsi twistComparativeAdvertising When we compare any two products For exampleSupreme vs. LiptonProjectsformba.blogspot.com 1011. Projectsformba.blogspot.comCelebrity Testimonial Whencompanies cast a celebrity in its advertisement For example Alizafar, reema, meera and amna huq in LUX ADD now daysRetailAdvertising When shop keepers advertise their shops or malls Forexample PaceInteractive Advertising Contact through the telephonicconversation to sell the product. For example It happens basically inbusiness to business advertisement like

when pharmaceuticalcompanies advertise their new medicines to the doctors.Advertisinga Service Instead Of A Product Advertising services is one of themost difficult type of advertising. You dont have a tangible productyou can put in someones hand. They cant touch it, feel it, see it orsmell it. For example Advertisement for new admission opens inuniversity.Projectsformba.blogspot.com 1112. Projectsformba.blogspot.com REASONS TOADVERTISEAdvertising is such an important thing for a business todo, advertising is not justimportant for businesses but for things thatoffer services. Advertising tells people aboutyour product orproducts so they can be sold. Big companies such as McDonaldsandColgate Palmolive dont need to advertise because their productsare already knownthroughout the world, but when these two firstcame out they would have had to havespent millions of pounds onadvertising to get them to the stage where they are now.Thefollowing may be the maximum reasons toadvertiseProjectsformba.blogspot.com 1213. Projectsformba.blogspot.com Produce leads Educateprospects about the benefits you offer Expand into new markets Influence the people who influence others (the trendsetters) Makeyour name known to people who have never heard of you Pre-sell 32. your offering (prior to the sales persons call) Expand upon a publicrelations story Tell the story of your company Add authority toyour message (by putting it into print, people equate advertising withsuccess) Build your corporate identity Build confidence in yourproduct/services Dispel an ugly rumor Keep your name in theforefront of your customers minds Head off competitors Go aftercompetitors business Prove your quality with success stories Make your stockholders happy Assert your leadership Maintain aconstant public presence Help your direct mail pay off Announcethe existence of your product Gain credibility Become a brandname Establish a niche Highlight testimonials from satisfiedcustomers Test something Create a desire to buy Make sales Obtain names for your prospect or customer mailing list Informmany

people at the same time Motivate people to call or e -mail orsend coupon Engage in research by studying the profiles ofrespondents Prove your superiority ... to earn aprofitProjectsformba.blogspot.com 1314. Projectsformba.blogspot.com PROS AND CONS OFADVERTISEMENTSAdvertising - Good or Bad?"Advertising -Good or Bad" In todays society, one must consider Is there anyadvantage ofadvertising? In many cases it is onlydisadvantageProjectsformba.blogspot.com 1415. Projectsformba.blogspot.com- An annoying hindrance in ourdaily lives. It gets on our nerves, distorts thetruth, and adds to thecost of the product. Advertising is designed for onepurpose - to sell.To achieve this goal, advertises are willing to stretch anddistort thetruth, just to convincing people to buy their product. Forexample, anadvertiser may convince buyers to purchase their product bystatingthat has been tested and found superior. In reality, the product isnotlikely to be better than any other - the tests themselvesdoubtlesslyconducted by the promoting company conducted toensure at leastsomething is superior about the product, even if it isonly the color. Theseadvertisements are worded carefully so thatthey are telling the "literal truth"- the truth is exactly what the wordssay, although people misinterprets themessage by usingconversational logic as something different - somethingbetter. Byusing ingenious tactics like these, the populace is deceivedintobuying a product that may not do what is required, or a productwhich abuyer may have never really needed. This is why advertisingis a bad thing,for our society.FOLLOWING ARE THE BASICADVANTAGES ANDDISADVANTAGES OF ADVERTISMENT.Advantages DisadvantagesProjectsformba.blogspot.com 15 Self-service operations ability to possible provide detailedinformationPURPOSE OF 33. RESEARCH:Projectsformba.blogspot.com 16 Some media limitthe Editorial content throwaway rate surrounds ad Some mediahave high Message study possible Some media require longcontent; lead message can be standardized time Control overmessage Geographic flexibility

available limited Manyalternatives Low cost per contact investments Some mediarequire large Gains pass along lack readership flexibility (for print) Standardized messages Attracts a large audience 16.Projectsformba.blogspot.com17. Projectsformba.blogspot.comEFFECT OF ADVERTISEMENTON THE BUYING BEHAVIOR OF FEMALES:As our basicresearch process is concerned with the effects of advertisementsonthe buying behavior of females so on this regards well conduct afullresearch process to evaluate that how much the advertisementaffects thebuying behavior of females.As it is a very known sayingthat Customer is the king of the marketNow here we believe thatfemales are the queens of the market.As large areas of markets areoccupied by the females so their buyingbehavior means a lot for themanufacturers. They must be very careful intheir marketingstrategies and should consider the females attitudetowardsconsumption of their product.Now here our basic purpose ofresearch is to come to the result that what arethe basic thingsregarding to products that largely affect the buying behavioroffemales and how much advertising influence their buying. Whenwell getour findings then well give very fruitful suggestions to themarketingdepartments of the organizations that how they canincrease their saleamongst the females.Projectsformba.blogspot.com1718. Projectsformba.blogspot.comRESEARCH PROCESSNowcoming towards the basic topic, well start from here the majorportion of our reportwhich is the research process through whichwell conclude what we find and what arethe recommendations forthe marketing departments of theorganizations.Projectsformba.blogspot.com 1819. Projectsformba.blogspot.comTYPE OF RESEARCH:As ourresearch is for all the organizations so we can say that our researchtype is BASICor PURE RESEARCH, which is on a generaltopic.Projectsformba.blogspot.com 1920. Projectsformba.blogspot.com OBSERVATION:Observationmeans to see or feel what certain changes are occurring or newbehaviors, attitudes and

feelings are surfacing. It is the stage whenproblem is not def ined yet.There are four types of observation suchas:Projectsformba.blogspot.com 20 34. 21. Projectsformba.blogspot.com 1) Currently existing problem 2)Situation requiring improvements 3) Theoretical or conceptualproblem 4) Problem requiring empirical answersHere in our project,the problem can beSITUATION REQUIRINGIMPROVEMENTBecause we are going to conduct the wholeresearch process on the buying behavior offemales, so situation issatisfactory as females buy more and more with the passage oftime.We just want to reach at those results which tell us that which thingsinfluence thefemales buying. Is it advertisement, quality, appearanceor any other thing?So our basic research is on a situation in whichwe observe the buying behavior offemales having different taste,different preferences, and living in different cities ofPakistan and areof different ages.Projectsformba.blogspot.com 2122. Projectsformba.blogspot.com PRELIMINARY DATACOLLECTION: It means to seek information in order to knowmore about what we observedHere we are working on a broaderterm that which factors influence the females buyingbehavior so wehave to collect data from different tools to confirm our observationthatwhich things actually influence the female buying and how muchadvertisement play rolein their buyingbehavior.Projectsformba.blogspot.com 22 Unstructured interviews STRUCTURED INTERVIEWS:Instructured interviews the interviewer asks those questions which arepre planned. All the questions are well prepared and the interviewercan easily ask the questions in a series from an appropriateRespondent. It is also called formal interview. UNSTRUCTUREDINTERVIEW: In unstructured interviews normally the interviewerasks the questions without any predetermined sequence. Thequestion which comes first in the mind of the interviewer will beasked first. It is also called informal interview.For the purpose ofcollecting the preliminary data about our observation, weconductedsome unstructured interviews from following 2SECTORS A. EDUCATIONAL SECTOR B.

ADVERTISINGAGENCY EDUCATIONAL SECTOR: FROM EDUCATIONALSECTOR WE SELECTED THE FEMALE MEMBERS OFFOLLOWING INSTITUTIONSProjectsformba.blogspot.com23 Structured interviews 23.Projectsformba.blogspot.comPrimary Data can be collected by thefollowing two ways;1- Interviews2- Literature Survey 1.INTERVIEWS: Interviews are conducted for the followingreasons To bring preliminary issues to the surface so thatresearcher can determine about variables of interest. To understandthe scenario of situation. To explore the variables in thesituation.INTERVIWS MAY BE OF TWO TYPES: 35. 24. Projectsformba.blogspot.com 1. THE WELL KNOWNEDFEMALE TEACHERS OF UNIVERSITY OF THE LAHORE 2.THE TEACHERS OF AN INSTITUTION, PAK AIMS INLAHORE 3. THE FEMALE TEACHERS OF D & E ACADEMYGUJRANWALA. 4. FROM THE FEMALE STUDENTS OFUNIVERSITY OF THE LAHORE, PAK AIMS AND D & EACADEMY.According to the structured and unstructured interviewswhich we have conducted to theabove females, we collected thefollowing information about our situation problem Fem alesmostly prefer the quality of the product Advertisement effects theirbuying but the routine products which they use to buy from manyyears, from them they dont see that for which product advertisementis good. they just buy that product as routine E.g. Max bar, head &shoulders shampoo Females are more attractive towards productslike cosmetics, clothing, shoes Especially working women Advertisement is also the biggest cause to influence the buyingbehavior of females but advertisements should be approved by themarketing departments of companies. ADVERTISINGAGENCYProjectsformba.blogspot.com 2425. Projectsformba.blogspot.com2. LITERATURE SURVEYS:It isalso a part of Primary Data Collection. The purpose of literaturereview is to ensurethat no variable is ignored that has been considerimportant in the past.Literature Survey can be defined in thefollowing manner;Projectsformba.blogspot.com 2526. Projectsformba.blogspot.com

Documentation of comprehensivereview of published and unpublished work from secondary sourcesof data in area of interestAs far as our topic is concerned, weselected the following literatures from internet forthe purpose ofpreliminary data collection 1) AAEC 3100 Food and FiberMarketing Dr. Steven C. Turner Chapter 6 Analyzing ConsumerMarkets & Psychological 2) From the study of an article publishedin the sitewww.csustan.edu/market/petrosky/Old3410/34Lect5CB/tsld0...Inthis article we found the following things according to consumerbuying behaviorCharacteristics Affecting Consumer BehaviorBuyer Psychological Personal SocialCultureProjectsformba.blogspot.com 26 Personal SocialCultural Buying BehaviorIn which we found the following datathatMajor Factors which Influence the Consumer Behavior can be27. Projectsformba.blogspot.comFactors Affecting ConsumerBehavior: Culture Social Class People within a social class tendto exhibit similar buying behavior. Occupation SOURCE ofIncome Education WealthMost basic cause of a persons wantsand behavior Values Perceptions Subculture Groups of people 36. with shared value systems based on common life experiences. Mature ConsumersFactors Affecting Consumer Behavior: Social Reference Group influence: Membership Groups: Primary andSecondary Non membership groups: Aspiration and Dissociative More important with publicly consumed products Familyinfluences: Stage of the family lifecycle Buying Roles in thefamily Factors Affecting Consumer Behavior: Psychological Psychological Factors Motivation Perception LearningProjectsformba.blogspot.com 2728. Projectsformba.blogspot.com Beliefs and AttitudesSoaccording to these literature surveys and from the interviews, weconfirm ourobservation that there are some specific things whichhighly influence theconsumers buying behavior, especially offemale customers.Projectsformba.blogspot.com 2829. Projectsformba.blogspot.com PROBLEM DEFINITIONAfter thepreliminary data collection, we can now develop a statement toexplain

thebasic problem.Any gap between desired situation andactual situation is called Problem and briefstatement that explainsany thing is called Definition. So, Problem Definition means:Astatement that explains what the real problem is, what types offactors are involved in this problem and finally what areconsequences of a problem.Projectsformba.blogspot.com 2930. Projectsformba.blogspot.comAfter going through interviews andliterature review we check the following essentialelements ofProblem Definition: 1) Antecedents(Contributing Factors) 2) RealProblem(What is Wrong) 3) Consequences(Results)The problemdefinition of our project can be explained with the help offollowingdiagram: (Real situation) (Consequences) EFFECTS ONBUYING BEHAVIOUR OF PRICE AND QUALITY ORIENTEDFEMALES ECONOMY 1- PRICE 2- QUALITY 3ADVERTISEMENT (Antecedents) 4- IMPORTED PRODUCTS 5PURCHASING POWER 6- STATUSANTECEDENTS:Antecedents are the contributing factors which are responsible forthe real problem. In our project antecedents are1- PRICE2-QUALITY3- ADVERTISEMENT4IMPORTED PRODUCTS5-PURCHASING POWER6STATUSProjectsformba.blogspot.com3031. Projectsformba.blogspot.comThese are the antecedents becausethese are the basic reasons behind the buying behaviorof females.These above antecedents effects directly or indirectly to the buyingbehaviorof females.REAL PROBLEM: As we know that welldefined problem is half solved and symptoms are not the realproblems.Real problem is that situation which results from the 37. antecedents or contributing factors.So in our project real situationwhich is created from the contributing factors is:How the buyingbehavior of females is influencing? Which factors influence it and istheadvertisement a basic factor?CONSEQUENCES:Consequences are the results of real problemIn our projectconsequence is The economy will be price an d quality orientedthisconsequence is the result of the preliminary data collection as whenwe conductinterviews, mostly females think that they prefer thequality from all other factors.Projectsformba.blogspot.com 3132.

Projectsformba.blogspot.com THEORETICAL FRAMEWORKIt is a logical developed, described & elaborated network ofassociations among variables that have been identified throughinterviews, observation & literature surveyVariables:Projectsformba.blogspot.com 32 Imported products Now in the research process well see that whichare the basic most important factors which mostly influence thebuying behavior of females. 3. Moderating Variable The variablewhich has strong contingent effect on the relationship of dependentSubstitutes Purchasing power Advertisement Quality Price Extraneous variable1. Dependent variable Any variable that willdepend on others for its valuesIn our project, our dependentvariable isBUYING BEHAVIOR OF FEMALESNow wellexplain the effect of other factors on this dependent variable in detailin ourwhole project.2. Independent Variables: It is the variable onwhich the dependant variable depends upon for its value The majorcauses of a problem are called independent variables. In our project,our independent variables are: Intervening variable Moderatingvariable Independent variable Dependent variable 33.Projectsformba.blogspot.com The identification of key variables isvery important in every research study.It can be defined as: Avariable is anything that takes different values. T ypes of Variables:& independent variable It is also called second independentvariable. Projectsformba.blogspot.com 33 Sales taxAs sales tax has little effect on the buying behavior so itcan be easily ignoredHere we show the relationship of differenttypes of variables diagrammaticallyProjectsformba.blogspot.com34 Willingness to buyThe effect of these variables can only be feltbut we can not measure them quantitatively.These variablescontribute an important role on the creation of the problem.5.Extraneous Variables: There are infinite numbers of factors whichmay have impact on the situation but we will ignore these factors byassuming them as constant are called extraneous variables. In ourproject extraneous variable is as follows Status consciousness

38. Above is the moderating variable because it has a strongcontingent effect on therelationship of dependent variables andindependent variables. As if marketingdepartments make the goodstrategies to attract the customers then they can increase theirsalevolume.4. Intervening VariablesThere are some factors which haveeffect on the situation but we can not measure them quantitatively,we can just feel their effect.These variables will be createdautomatically by the working of independent variables.In our projectintervening variables are as follows: Role of marketingdepartments of the companies 34. Projectsformba.blogspot.comInour project, our moderating variables are:35. Projectsformba.blogspot.com (Dependant Variable) (InterveningVariables) (Independent Variables) Imported products SubstitutesPurchasing power Advertisement Quality Price StatusconsciousneBuying behavior of ss females -willingness (ModeratingVariables) (Extraneous Variables) Role of the Sales tax marketingdepartmen ts of companies. . Projectsformba.blogspot.com 3536. Projectsformba.blogspot.comProjectsformba.blogspot.com 36 RELATIONAL This can be further classified as o Co relationalhypothesis o Casual hypothesis.Co relational Hypothesis:When astatement will create relationship among more than two factors orwhen causes of a problem are more than one, the hypothesis aboutsuch a problem will be called as co relational hypothesis. ORWhen there is only one problem and there are a lot of factors orvariables which Increase the problem is also called Co relationalHypothesis.In our study there is the situation of buying behavior offemales and there are manyindependent variables which influencethe buying behavior of females. Now we will checkthe relationshipamongst those variables by creating the Hypothesis and applyingcertainStatistical tools which will tell us that which factor is stronglyin connection with thebuying behavior offemales.Projectsformba.blogspot.com 37 DESCRIPTIVE 37.Projectsformba.blogspot.com HYPOTHESIS DEVELOPMENT Ahypothesis is a logically conjectured relationship between two ormore

variables expressed in the form of a testable statement. OR Astatement whose validity will be confirm in future by applyingdifferent statistical toolsSo, in hypothesis we confirmed the validityof any statement after the experiments or datacollection.KINDS OFHYPOTHESIS:38. Projectsformba.blogspot.comSo the following is the creation ofHypothesis of different factors that affect the buyingbehavior offemalesFemale preferences:H: females do not prefer quality ofthe product while buyingH1: females prefer quality of the products 39. while buying.Influence of advertisements:H: Advertisement has noinfluence on the buying behavior of femalesH1: advertisement hasinfluence on the buying behavior of females.Statuscons ciousnessH: females do not prefer status/self image whilebuying.H1: females prefer status/ self image while buying.Negativeeffects of advertisements:H: there is not any negative effect ofadvertisement on the buying behavior of femalesH1: there is anynegative effect on the buying behavior of females.Advertisements ofsubstitutes:H: advertisements of the substitutes do not affect thepopularity of the product.H1: advertisements of the substitutes affectthe popularity of the product.Imported goods:H: imported good arenot more attractive for femalesH1: imported goods are moreattractive for females.Satisfaction level:H: good advertisements arenot the basic cause of satisfaction of females towards consumptionof goods.H1: good advertisements are the basic cause of satisfactionof females towards consumption of goods.Advertised products:H:females do not prefer the advertised products on necessities oflifeH1: females prefer the advertised products on the necessities oflife.Product success or failure:H: advertisements can not becomethe cause of any product success or failure.H1: advertisements canbecome the cause of product failure or success.Demand of theproduct:H: advertisements cannot create the demand of anyproduct.H1: advertisements can create the demand of anyproduct.Projectsformba.blogspot.com 3839. Projectsformba.blogspot.comProjectsformba.blogspot.com 3940. Projectsformba.blogspot.com RESEARCH DESIGN:It is a majorand

pivotal step of business research. The step involves the overallschemeabout data collection.Research design is a plan and structureof investigation to obtain answer to researchquestion. It is overallscheme and program of research which includes an outline ofwhatthe researcher will do from developing hypothesis and to thefinal analysis of data. Research design constitutes the blue print forcollection, measurement and analysis ofdata. R.D is plan andstructure of investigation to obtain answer to researchquestions.PURPOSEOF TYPE OFSTUDY INVESTI RESEARGATION CHER INTERFE RENCE STUDY SETTING UNIT OFANALYSI S TIME HORIZO N SAMPLIN G DATA COLLECMEASURE TION MENT OF METHOD MEASURE S SProjectsformba.blogspot.com 4041. Projectsformba.blogspot.com PURPOSE OF STUDY: In thepurpose of study, researcher defines the purpose behind the research.These may be 4 types of purposes: 1. exploration 2. description 3.hypothesis 4. case study Here in our research process, our purpose ofstudy is to evaluate that WHAT affects the females buying 40. behavior, WHICH are the factors, which influence the buyingbehavior of females, HOW advertisements affect the buyingbehavior of females. So we can say that as we are explaining anexisting situation so our purpose of study is Description. Objectiveof descriptive study is to learn the who, how, what, when, where of atopic. TYPES OF INVESTIGATIONS: Investigation is conducted tocomplete the research process efficiently. Investigations may be oftwo types: 1. casual investigation 2. co relational investigation CORELATIONAL INVESTIGATION: The investigation which isconducted to explain the effect of different variables on the situationis called co relational investigation.In simple words, we can say thatwhen there are more than one reasons of a problem it iscalled corelational investigation.In our research process,Our type ofinvestigation is Non Casual because there is more than one reasonwhichinfluences the buying behavior of females.Projectsformba.blogspot.com 4142. Projectsformba.blogspot.comRESEARCHERINTERFERENCE:In

researcher interference we see that which typeof study is going to be conduct by ourgroup. Either it is 1. corelational study, in which minimum involvement of researcher isrequired because it is based on findings of others, or 2. Casual study,in which researcher involvement is more. As we are conductingresearch through the findings of others so our involvement isminimum in the findings of research. STUDY SETTING: It meansin which type of environment weve conducted our research process.The study setting may be of 2 types: a. Contrived This can be furtherclassified as o Lab experiment. b. non-contrived This can also befurther classified as o Field study. o Field experiment. Non-contrived: When the research is conducted in natural or normalenvironment, it will be called non contrived study. Normally, thistype of study is conducted inside the organization. Field Study:When the researcher has to co related the factors then investigationout side the organization is called as Field Study. So, the type of ourstudy setting is non-contrived and during our research we alsoconducted Field Study. Projectsformba.blogspot.com 42 Non Probability Sampling Projectsformba.blogspot.com 43Probability Sampling OrganizationsIt depends upon the nature ofproblem that is being investigated. In our research process, wevegathered the data from INDIVIDUALS in the form of questionnairesand from ORGANIZATIONS in the form of interviews. TIMEHORIZON: In which we mention that how much time weve used indata collection. Time horizon has two types 1. cross-sectional 2.longitudinal Longitudinal study: As In Longitudinal method thewhole data is collected again and again with out any time interval.So in our research time horizon is Longitudinal. SAMPLING: The 41. process of using a small number of items or parts of a largepopulation to make conclusions about the whole population Thebasic purpose of sampling is; To obtain maximum information aboutthe characteristics of population with in less time, cost and effortThere are two types or styles of Sampling. That is GroupsDyads Individuals 43. Projectsformba.blogspot.com UNIT OFANALYSIS:It is aggregation of data during subsequent analysis.Data can be gathered form:44.

Projectsformba.blogspot.comWHERE PROBABILITYSAMPLING CONTAINS: 1. Complex random sampling Thisfurther can be classify as o Systematic Sampling o StratifiedSampling o Cluster Sampling o Area Sampling o Double Sampling2. simple random samplingAND NON PROBABILITY SAMPLINGCAN BE CLASSIFIED AS: 1. Convenient sampling 2. purposivesampling o judgment approach o quota approachhere in our researchprocess, weve done the complex random sampling under the head ofprobabilitysampling in which weve used the CLUSTERSAMPLING APPROACH in which sample is chosen onthe basis ofintra- group heterogeneity and inter-group homogeneity.As we arecomparing here the females with females so our sampling criteria isinter-group homogeneity.Projectsformba.blogspot.com 4445. Projectsformba.blogspot.comDATA COLLECTIONMETHODS:There are two types of data collection methods. 1.primary data collection structured interviews unstructuredinterviews 2. secondary data collection questionnairesStructuredInterview: Structured Interviews are conducted when it is known atthe outsetwhat information is needed. The interviewer has a list ofpre-determined questions to beasked of the respondents eitherpersonally, through the telephone, or by sending the mainthroughelectronic mail.Un-Structured Interview: In case of unstructuredinterview, the interviewer asks thequestions without any predetermined sequence. Those questions are asked first whichcome inthe mind of the interviewer first.So we conducted StructuredInterviews with the employees of different selectedorganizations.And our method of collecting Primary Data is throughStructuredInterviews and Un-structured Interviews which we havealready discussed in preliminarydata collection methods.Unobtrusivemeasures: It means to trace the measures from a primary source thatdoesnot involve people.In the primary data collection, we also usethis technique by just observing the buyingbehavior of females ofour homes and near our homes.Projectsformba.blogspot.com 4546. Projectsformba.blogspot.comQuestionnaire: A questionnaire isa

reformulated written set of questions to whichrespondents recordtheir answers, usually within rather closely defined 42. alternatives.Questionnaires are an efficient data collectionmechanism when the researcher knows exactlywhat is required andhow to measure the variables of interest.Questionnaire can beadministered personally, mailed to respondents, orelectronicallydistributed.During our research process we made closeended questionnaires, and these arepersonallyadministered.MEASUREMENT OF MEASURES: Measurement ofmeasures is a key step in research design; it means to measuretheinformation collected from different respondents by differentways by using differentmethods of data collection, to check theaccuracies and reliability of data or informationcollected. It is alsocalled the MOM of research.Scale: Scale is a tool by which theindividual units are distinguished on the basis ofvariable of interestin some meaningful way.We can say that scales will categories thethings into different groups.Types of Scales a) Nominal Scale b)Ordinal Scale c) Interval Scale d) Ratio ScaleAPPROACHES OFSCALING: a) Dictorious scaling. b) Category scaling. c) Likertscaling.Projectsformba.blogspot.com 4647. Projectsformba.blogspot.com d) Semantic scaling. e) Numericalscaling. f) Ranking scaling. g) Fixed scaling. h) Psychologicalscaling i) Graphic scalingIn our Central EditingFIELDEDITING:According to this approach, researcher makes thecorrections at the time of gettinginformation from the respondents.Soin our research process, we used this approach at each and every stepdue to which ourdata is correct and having no mistake or blanks init.Now we can analyze it through differenttechniques.Projectsformba.blogspot.com 47 Field editing designing of questionnaire, we have used the following approachesin questions,Dictorious scalingCategory scalingSemanticscalingRanking scalingGraphical scaling (in every question)DATAPREPERATION FOR ANALYSIS:Before analyzing the data, weveedit our data due to the reason that there should be notany mistake indata which can cause the error in the data analysis.Types of Editing48.

Projectsformba.blogspot.comProjectsformba.blogspot.com 4849. Projectsformba.blogspot.com DATA ANALYSISFor thepurpose of analyze the validity and reliability of data, certainstatistical toolsAveragesCorrelationPercentage etc are applied. Herefor the confirmation of our research we will use thepercentagetechnique in which mea of the data is also calculated.NOW WELLANALYZE ALL THE FACTORS INVOLVED IN ALLQUESTIONSOF OUR QUESTIONNAIR TO COME AT THECONCLUSION THAT WHAT ARETHE BASIC FACTORSWHICH INFLUENCE THE FEMALE BUYING BEHAVIORANDHOW MUCH ADVERTISING PLAYS THE ROLE IN IT:Well 43. analyze here each and every question one by one, keep in mind thatthisquestionnaire was only for females.Projectsformba.blogspot.com4950. Projectsformba.blogspot.comQ#1: What is your preference whilebuying?Frequency TableYour preference while buying FrequencyPercent Valid Percent Cumulative Percent Valid price 33 11.0 11.011.0 quality 134 44.7 44.7 55.7 appearance 24 8.0 8.0 63.7 local or22 7.3 7.3 71.0 imported all of the 87 29.0 29.0 100.0 above Total300 100.0 100.0GRAPHICAL REPRESENTATION: price all of theabove local or imported qualityappearanceProjectsformba.blogspot.com 5051. Projectsformba.blogspot.comIN THE NUT SHELL: In thisquestion we want to evaluate that which factors basicallyinfluencethe female buying. We filled the 300 questionnaires from 300femalesof different ages and from different areas. When we took thefrequency of ourresults provided by females, we come to the resultthat the main basic factorwhich hardly influences the female buyingis PRODUCT QUALITY. Manyfemales have also selected the priceand appearance and imported products, butaccording to the results itis approved that they give more preference to thequality of anyproduct.At the second place, mostly females also selected the lastoption which is ALLOF THE ABOVE, which means now daysfemales do shopping according to aplanning. They buy each

andevery thing with full concentration and do notcompromise with anything while buying.So at the result, we can say that females give firstpriority while buying to thequality and then to the other influencingfactors. HENCE THE RESULTQ#2: Do advertisements influenceyour buying?Projectsformba.blogspot.com 5152. Projectsformba.blogspot.comFrequency TableDo adver influencebuying Frequency Percent Valid Cumulative Percent Percent Validyes 193 64.3 64.3 64.3 no 58 19.3 19.3 83.7 I dont 49 16.3 16.3100.0 know Total 300 100.0 100.0GRAPHICALREPRESENTATION: 300 200 100 Count 0 yes no i dont know doadver influence buyingIN THE NUTSHELL:Projectsformba.blogspot.com 5253. Projectsformba.blogspot.comWe structured the above questionaccording to the basic requirement of ourresearch topic which isEFFECT OF ADVERTISEMENT ON THE BUYINGBEHAVIOUROF FEMALES.So according to the above findings, we can see that193 females are agreedupon the fact that their buying influencedwith the advertisements. Whichmeans advertisement is also a basicfactor of influencing females buyingbehavior.Secondly 58 femalessaid that advertisement do not influence their buying. Thismay be 44. due to the fact that Pakistan is a poor country and females cant beartoomuch expensive things so they always cant follow theadvertisements whilebuying the necessities of life.And the lastportion of females, which is 49they said that they dont haveanyidea about it which means they do shopping according to theroutine matters.They dont prefer which things are newly emergingin advertising Medias. HENCE THE RESULTQ#3: While buying,you are more conscious towards:Projectsformba.blogspot.com 5354. Projectsformba.blogspot.comFrequency TableConscious towardsFrequency Percent Valid Cumulativ Percent e Percent Validadvertise 33 11.0 11.0 11.0 ment status 51 17.0 17.0 28.0 price, 14147.0 47.0 75.0 quality all of the 75 25.0 25.0 100.0 above 300 Total100.0 100.0GRAPHICAL REPRESENTATION: advertisement allof

the above status price, qualityIN THE NUTSHELL:Projectsformba.blogspot.com 5455. Projectsformba.blogspot.comAbove question was administeredby our group by keeping in mind the femalepsyche that when theygo to the market to buy something, they are moreconscious towardswhich things. So according to the results we also got thesameanswers as we got in question one because mostly females said thattheyprefer quality and price factor while buying. They do notcompromise with thequality of the product. Others are the secondarythings.Here we can observe that status also influence the buyingbehavior because inour country females often consider the statuswhile buying. HENCE THE RESULTQ#4: Do you prefer status/selfimage during buying?Frequency TableProjectsformba.blogspot.com5556. Projectsformba.blogspot.comStatus preferences FrequencPercent Valid Cumulati y Percent ve Percent Valid i think so 15451.3 51.3 51.3 i dont 44 14.7 14.7 66.0 think so seldom 64 21.3 21.387.3 think so i dont 38 12.7 12.7 100.0 know Total 300 100.0100.0GRAPHICAL REPRESENTATION 180 160 140 120 100 8060 40 Count 20 i think so i dont think so seldom think so i dontknow status preferencesIN THE NUTSHELL:Projectsformba.blogspot.com 5657. Projectsformba.blogspot.comHere we can see that how statuseffects the female buying behavior. Here in ourcountry females arevery conscious for their self image so we can see that in theresults144 females agree that they consider the self image whilebuying.Secondly females said that they seldom think that theyconsider the status whilebuying because they also consider the priceand quality of the products as wellbecause they are also veryimportant.At the last some females said that they are not status 45. conscious and some saidthat they dont know that either theyconsider the self image while buying ornot. These may be thosefemales which only prefer to buy basic necessities lifeand belongs tomiddle or lower middle families. HENCE THE RESULTQ#5:Which type of advertisement is more attractive foryou?Projectsformba.blogspot.com 5758.

Projectsformba.blogspot.comFrequency TableType ofadvertisement Frequency Percent Valid Cumulative Percent PercentValid product 165 55.0 55.0 55.0 institutional 51 17.0 17.0 72.0celebrity 84 28.0 28.0 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: celebrity product institutionalIN THE NUTSHELL:Projectsformba.blogspot.com 5859. Projectsformba.blogspot.comHere well se that whichadvertisement type is more attractive for females. Thisquestion wasmade for the purpose to suggest the companies that femalespreferwhich types of advertisements.Here we can see that productadvertisement is at the top of the list. Females aremore familiartowards product advertisements instead of other types.Secondarycelebrity advertisements are also very famous amongst thefemalesbut there should be improvements in this type for becomingmore successful. HENCE THE RESULTQ#6: Is there any negativeeffect of advertisement on your buying behavior?FrequencyTableProjectsformba.blogspot.com 5960. Projectsformba.blogspot.comNegative effect of advert FrequencyPercent Valid Cumulative Percent Percent Valid yes 59 19.7 19.719.7 no 66 22.0 22.0 41.7 sometimes 147 49.0 49.0 90.7 never 28 9.39.3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: 160 140 120 100 80 60 40 20 Count 0 yes nosometimes never negative effect ofadvertProjectsformba.blogspot.com 6061. Projectsformba.blogspot.comIN THE NUT SHELL:Now wellsee that we know that advertisements have influencing effects onthebuying behavior of females but is advertisement has negativeeffects as well ornot.For this purpose we illustrated the abovequestionnaire and took feedback fromfemales. From that feedbackwe came to know that mostly females think thatsometimesadvertisement effects negatively. These negative effects may beofany type.On the second and third place we can see that ratio isalmost same, somefemales think that there are definitely bad effectsof advertisement and somethink that there is no any negative effectsof advertisements. And some said thatthere can never be any badeffects of advertisements. Advertisements aresuccessful always.

46. HENCE THE RESULTQ#7: Negative effects of advertisement maybe of which type?Frequency TableProjectsformba.blogspot.com 6162. Projectsformba.blogspot.comNegative effects may b FrequencyPercent Valid Cumulative Percent Percent Valid You often 109 36.336.3 36.3 neglects the price while purchasing Too much 39 13.0 13.049.3 prefer the celebrity advertisement Prefer only 73 24.3 24.3 73.7appearance and reputation of company, not quality others 79 26.326.3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: others You of ten neglects Pref er onlyappearan Too much pref er theIN THE NUTSHELL:Projectsformba.blogspot.com 6263. Projectsformba.blogspot.comIn the above question we give someoptions regarding to negative effects ofadvertisements. That if thereis any negative effect of advertisement then thatshould be what. Soaccording to our research, we can say that females think thatwhennew advertisement come then they often neglect the price of theproductand purchase that advertised product. They dont think thathow much theproduct is expensive; they just go through to buy thatproduct due to veryattractive advertisement.Also a group of femalessaid that they think that they often see the goodappearance of theproduct and purchase that, they dont consider the qualitymuch atthat time.And also a large number of females said there are alsoother negative effects ofadvertisements that appear according to theconditions. HENCE THE RESULTQ#8: Effectiveness andattractiveness of advertisement depends uponFrequencyTableProjectsformba.blogspot.com 6364. Projectsformba.blogspot.comAttraction towards FrequencyPercent Valid Cumulative Percent Percent Valid slogan 54 18.0 18.018.0 trade mark 25 8.3 8.3 26.3 company 64 21.3 21.3 47.7 reputeappearance 39 13.0 13.0 60.7 all of the 118 39.3 39.3 100.0 aboveTotal 300 100.0 100.0GRAPHICAL REPRESENTATION: 140 120100 80 60 40 20 Count 0 slogan company repute all of the abovetrade mark appearance attractiontowardsProjectsformba.blogspot.com 6465. Projectsformba.blogspot.comIN THE NUT SHELL:We makethis question

for the marketing departments of the companiestosuggest them that which things according to the females becomeanadvertisement attractive and effective. Thats things may be offollowings:SloganTrade markCompany reputeAnd appearanceButthe females said that all of the above options can combinely makeanadvertisement effective and attractive for females.If the companiesgive attention to all of the above things then they can attractthefemales toward their products through advertisement. HENCE THE 47. RESULTQ#9: How the advertisements of substitutes affect thepopularity of any productFrequencyTableProjectsformba.blogspot.com 6566. Projectsformba.blogspot.comAdvertisement of substituteFrequency Percent Valid Cumulative Percent Percent Valid Demandof the 121 40.3 40.3 40.3 product reduces You neglect 67 22.3 22.362.7 the product due to new advertisement of substitute it doesnt112 37.3 37.3 100.0 effect Total 300 100.0 100.0GRAPHICALREPRESENTATION: it dosnt effect Demand of the produc Youneglect the proProjectsformba.blogspot.com 6667. Projectsformba.blogspot.comIN THE NUT SHELL:Here is aquestion to check that if a new advertisement of the substitute ofanyexisting product come then is that affects the popularity and salevolume of theexisting product.So according to the feedback we cansee that 121 females said that demand ofthe existing productdecreases due the advertisement of the new product and112 femalessaid that it doesnt effect the popularity of the product whichmeanshere is a controversy amongst the different group of females,whichmeans that females perceive the new advertisementsdifferently according totheir mood and situations. HENCE THERESULTQ#10: Which advertisement media is more attractive foryou?Frequency TableProjectsformba.blogspot.com 6768. Projectsformba.blogspot.comAdvertisement media FrequencyPercent Valid Cumulative Percent Percent Valid electronic 187 62.362.3 62.3 news paper 21 7.0 7.0 69.3 fashion 52 17.3 17.3 86.7magazines bill boards 34 11.3 11.3 98.0 others 6 2.0 2.0 100.0 Total300 100.0 100.0GRAPHICAL REPRESENTATION: 200 100 Count0 electronic fashion magazines others

new s paper bill boardsadvertisement mediaProjectsformba.blogspot.com 6869. Projectsformba.blogspot.comIN THE NUT SHELL:Now in thisquestion well see that which advertising Medias are mostpopularamongst females.Now here we can see that electronic mediais the basic most important mediafor the popularity of theadvertisements amongst the females.On the second place we can alsosee that fashion magazines are also verypopular amongst femaleslike akhbar-e-jahan and others. HENCE THE RESULTQ#11: Howadvertisements affect the level of your buyingFrequencyTableProjectsformba.blogspot.com 6970. Projectsformba.blogspot.comAdvertisement effect level ofbuying Frequency Percent Valid Cumulative Percent Percent Validbuy more 106 35.3 35.3 35.3 buy less 30 10.0 10.0 45.3 remainssame 164 54.7 54.7 100.0 Total 300 100.0 100.0GRAPHICAL 48. REPRESENTATION: buy more remains same buy lessIN THENUT SHELL:Projectsformba.blogspot.com 7071. Projectsformba.blogspot.comHere we are checking that how theadvertisement affects the level of the buyingof females. Is itpositively affects or negatively or remains neutral.So here we can seethat mostly females said their there level of buying remainssamewith the new advertisements. They buy in the routine; there is notany bigchange due to advertisements.But on the second hand anotherbig group of females said that their buyinglevel increases with thenew and innovative advertisements. When anyadvertisement attractsthem then they definitely buy that due to which theirbuying levelincreases. HENCE THE RESULTQ#12: Advertisements of importedproducts are more attractive for you due toFrequencyTableProjectsformba.blogspot.com 7172. Projectsformba.blogspot.comAdvertisement of importedproducts Frequency Percent Valid Cumulative Percent Percent Validquality 120 40.0 40.0 40.0 reliability 77 25.7 25.7 65.7 company 5919.7 19.7 85.3 image status 44 14.7 14.7 100.0 Total 300 100.0100.0GRAPHICAL REPRESENTATION 140 120 100 80 60 40Count 20 quality reliability

company image status advertisement ofimported productsIN THE NUTSHELL:Projectsformba.blogspot.com 7273. Projectsformba.blogspot.comFemales in our country prefer a lotthe imported goods on local goods so weconducted the research forthis purpose also that what are the reasons behindthis so that ourlocal companies can also adopt that strategies so that theirselling willalso increaseSo according to the results we can see that femalesprefer them due to thequality and reliability of that products, theimported products are more reliableand have the good quality due towhich they prefer them and neglect the localgoods. HENCE THERESULTQ#13: Which advertisement, for the following categories,is more attractive for youFrequencyTableProjectsformba.blogspot.com 7374. Projectsformba.blogspot.comMore attractive advertisementcategories Frequency Percent Valid Cumulative Percent PercentValid basic 91 30.3 30.3 30.3 accessories home 52 17.3 17.3 47.7appliances art and craft 36 12.0 12.0 59.7 cosmetics 120 40.0 40.099.7 others 1 .3 .3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: others basic accessories cosmetics homeappliances art and craftIN THE NUTSHELL:Projectsformba.blogspot.com 74 49. 75. Projectsformba.blogspot.comWe know that advertisement is verypopular amongst the females but here wewanted to know thatadvertisements of which category are mostly popular.Here accordingto the results female like the ads of cosmetics more and thencometowards the basic accessories of life and on the other categories.HENCE THE RESULTQ#14: Degree of your satisfaction, towardsconsumption of goods depends uponFrequencyTableProjectsformba.blogspot.com 7576. Projectsformba.blogspot.comDegree of satisfaction, consumptionof goods Frequency Percent Valid Cumulative Percent Percent Validgood quality 174 58.0 58.0 58.0 price 38 12.7 12.7 70.7 appearance34 11.3 11.3 82.0 company 30 10.0 10.0 92.0 image others 24 8.08.0 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: 200 100 Count 0 good quality appearanceothers price company image degree of satisfaction,

consumption ofgoodsIN THE NUT SHELL:Projectsformba.blogspot.com 7677. Projectsformba.blogspot.comSatisfaction is very important forevery one, towards consumption of goods. Ifa costumer is satisfiedthen he will again and again purchase that product.According to ourresearch we came to know that females become satisfy mostlydue togood quality of the product.Price, appearance, company images havethe secondary importance for thesatisfaction of females towardsconsumption of goods. HENCE THE RESULTQ#15: Do you preferadvertised products on basic necessities of life duringbuyingFrequency TablePrefer advertised products on basicnecessariesProjectsformba.blogspot.com 7778. Projectsformba.blogspot.com Frequency Percent ValidCumulativ Percent e Percent Valid i think so 125 41.7 41.7 41.7 idont think 82 27.3 27.3 69.0 so seldom think 60 20.0 20.0 89.0 so idont know 33 11.0 11.0 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: i dont know seldom think so i think so i dontthink soIN THE NUT SHELL:Projectsformba.blogspot.com 7879. Projectsformba.blogspot.comHere is a question to see theimportance of advertised products. We ask fromthe females that ifthey prefer the advertised products on basic necessities thenwe cansee that almost 42 % females think that yes they often prefertheadvertised products on the basic necessities.And also on thesecond hand almost 28 % females think that they do not prefertheadvertised products on the basic necessities of life. HENCE THERESULTQ#16: Is advertisement become the cause of product failureor successFrequency TableProjectsformba.blogspot.com 79 50. 80. Projectsformba.blogspot.comAdvertisement cause productfailure or success Frequency Percent Valid Cumulativ Percent ePercent Valid i think so 125 41.7 41.7 41.7 i dont think 53 17.7 17.759.3 so seldom think 52 17.3 17.3 76.7 so i dont know 42 14.0 14.090.7 5 28 9.3 9.3 100.0 Total 300 100.0 100.0GRAPHICALREPRESENTATION: 140 120 100 80 60 40 20 Count 0 i think soseldom think so 5 i dont think so i dont know advertisement causeproduct failure or successProjectsformba.blogspot.com 8081.

Projectsformba.blogspot.comIN THE NUT SHELL:Thisquestion was made to get the idea of females that what they thinkthat canadvertisement cause any product failure or success?Soaccording to the results 41.7 % females said that yes a goodadvertisementcan be the cause of product success and a badadvertisement can become thecause of product failure.The ratios forthe rest options are almost same. HENCE THE RESULTQ#17: Isadvertisement increases demand of any productFrequencyTableProjectsformba.blogspot.com 8182. Projectsformba.blogspot.comAdvertisement cause demand ofproduct Frequency Percent Valid Cumulative Percent Percent Validyes 214 71.3 71.3 71.3 no 39 13.0 13.0 84.3 i dont know 47 15.715.7 100.0 Total 300 100.0 100.0GRAPHICAL REPRESNTATION:i dont know no yesProjectsformba.blogspot.com 8283. Projectsformba.blogspot.comIN THE NUT SHELL:In the abovequestion we got ideas that can advertisement create more demandforthe products or not.So here we can see that 71 % females said thatyes advertising can create thedemand for any product. If advertisingagencies make good advertisements thenthe demand of theirproducts will also be increased. HENCE THE RESULTQ#18: Howmarketing departments of companies make advertisementinterestingHow mkt dept make advertisementinterestingProjectsformba.blogspot.com 8384. Projectsformba.blogspot.com Frequency Percent ValidCumulative Percent Percent Valid By using 37 12.3 12.3 12.3famous celebrities By using 35 11.7 11.7 24.0 different medias By63 21.0 21.0 45.0 improving appearance of products All of the 16555.0 55.0 100.0 above Total 300 100.0 100.0GRAPHICALREPRESENTATION: 180 160 140 120 100 80 60 40 20 Count 0 Byusing famous cele By improving appeara By using different m All ofthe above how mkt dept make advertisement interestingIN THENUT SHELL:Projectsformba.blogspot.com 8485. Projectsformba.blogspot.comIn this question we collect thesuggestions from the females that how the marketingdepartments can

51. make the most attractive advertisements due to which femalesbecomemore influence towards the product and buy that product.Wegave the following options to the females for selection that areByusing famous celebritiesBy using different MediasBy improvingproduct appearanceBut 55 % females are agreed upon one conditionthat all of the above situations can becombinely put in the process ofmaking attractive advertisements to influence the buyingbehavior offemales. HENCE THE RESULTHYPOTHESISTESTING:Projectsformba.blogspot.com 8586. Projectsformba.blogspot.comProjectsformba.blogspot.com 8687. Projectsformba.blogspot.com FINDINGSIn our whole researchprocess, we get the following findingsProjectsformba.blogspot.com87 Marketing departments of the companies can make theadvertisements more attractive by using famous celebrities, differentmedias and by improving the appearance of the product.CONCLUSIONSThe purpose of our research is to find out thefemale behaviors towards thebuying of the products and also to seethat how much advertising affects theProjectsformba.blogspot.com88 Demand of the products can be increased with the help of goodadvertisements. Advertisement can become the cause of productfailure or success. Females mostly satisfy with the good quality ofthe product. Imported goods are mostly preferred due to their goodquality and reliability. Advertisement doesnt much effect the levelof buying. The most attractive advertising media in Pakistan iselectronic media Company reputation effects also in theeffectiveness of advertisements. Advertisements can become moreeffective through innovative slogans, different trade marks.Advertisement often left some negative effects in the minds ofconsumer, according to our research process that negative effectsmay be categorized in this sense that females neglect the price of theproduct and buy that advertised product at any cost. The mostpopular advertisement type amongst the females is productadvertisement Self image effects too much when females buy anyproduct Advertisement influence the female buying behavior butnot

more than quality of the product Females are more concernedtowards the quality of the product while buying 88.Projectsformba.blogspot.comThat:89. Projectsformba.blogspot.combuying behavior of females. Thebasic purpose of our research is to getinformation from females andthen suggest to the companies that what theycan do maximum toimprove their selling. Is advertisement is the biggesttool they have to 52. attract the females towards their products or there are someotherfactors as well which have the affects more than advertisements. Soforthis purpose we planned a full fledge research process and for thispurposewe did the cluster sampling and made the questionnaires tofill from thesample group to come to the conclusions.After collectingthe data we analyzed it and made some conclusions basedonfindings. We have found that females prefer the quality of theproduct atvery first stage. Now days females are very intelligent,they know thatadvertisements and appearances of the products maybe fake and canperceive them so they firstly check the quality of theproduct and then buythat product in the routine.As we conducted thewhole research from the very qualified females livingin good areasso their responses are very effective for our research process.Theover all trend was seen in the questionnaires regarding to the qualityofthe products so which means females do not compromise with thequality.People have mixed results about the advertisements of theproducts. On theone hand it also highly influences the buyingbehavior of females due toattractive Medias, different types,innovations in slogans but on the otherhand it also has some negativeeffects as well. If a good advertisement canbecome the cause of thesuccess of any product then a bad advertisement canbecome thecause of failure of any product.More over advertisements can effectnegatively and also positively to thechildren. They can perceive anything from the ads so advertisements shouldbe much ethical andgood for the children and teenagers.Further more according tofemales, the marketing departments should makethe advertisementsbetter through new and unique strategies if

they want toincrease theirsale and want to use the advertisement a big tool to increasetheir salevolume. RECOMMENDATIONSAfter getting the conclusions ofour research, we want to give somerecommendations to themarketing departments of the companies sothatProjectsformba.blogspot.com 89 Packaging must be g Advertisement affects the buying behaviorbut it must be realistic We also asked an open ended question fromthe females, they give us some value able suggestions which wewant to give you And rewardingHere we suggest you the ten stepsto make advertising successful1. Narrow your market to a specificgroup of prospective clients. Find your nichemarket.2. Analyze yourmedia. Does it appeal to your niche market? If it does, tailor youradsto relate directly to your media.3. Appeal to the impulse in theviewers of your ad. Call your readers to action *now*... Emphasizethe benefits which a consumer will get after purchasing yourproduct.Offer something free in the ad itself.4. Use other medias as well forcreating more demand of your products. Analyzethe advertisingstrategies of others.5. Design "killer" headings (slogans). Use new 53. and interesting techniques whiledesigning a message for yourproduct.6. Use different famous celebrities to become the moreattractive advertisement.7. Use realistic facts and figures in your adsso that the customers become moreloyal towards your product.8.Repeat again and again your advertisements so that theadvertisement of yourproduct can continuously be seen bycustomers.9. Clearly define all the attributes of the product so thatcustomers also believe thatthis product has also a good quality.10.Now promise yourself this: Youre going to get your ads noticed bywriting themyourself and taking these steps to advertising success.Relevant Truth full Advertisement can do any thing, it can createthe demand of any product but the advertising strategies should beeffective so that females believe on these ads and buy the productsso advertising should be: As females mostly prefer the quality ofthe products so they should highly focus on the quality of theirproducts. 90. Projectsformba.blogspot.comthey can focus on thosethings through

which they can increase their salevolume amongst thefemales. Advertisements influence but to someextentProjectsformba.blogspot.com 90 ood to influence the buyingbehavior of females Advertisements can change the preferences of females while buyingbut that must be realistic.So at the end we are stronglyrecommending you that if you want to increasethe sale volume ofyour product then firstly make its quality good, makerealisticadvertisements and use effectivemedias.Projectsformba.blogspot.com 91 Females prefer electronicmedias advertised products. Medias play an important role andadvertisements must be interesting. Buying behavior varies fromregion to region so advertisement does not affect a lot. 91.Projectsformba.blogspot.com 54. A comparison study on the top three two wheeler companies in india DocumentTranscriptProjectsformba.blogspot.comA COMPARISON STUDY ON THETOP THREE TWO WHEELER COMPANIES IN INDIADISSERTATION SUBMITTED IN PARTIAL FULFILLMENTFOR THE AWARD OF THE DEGREE OF MASTER OFBUSINESS ADMINISTRATION BY UNDER THE GUIDANCEOF PROF. FACULTY GUIDE- CUIMCHRIST UNIVERSITY INSTITUTE OF MANAGEMENTBANGALORE560029Projectsformba.blogspot.com pg. 1Projectsformba.blogspot.com DECLARATION This is to certify thatthis research project titled A COMPARISON STUDY ON THETOP THREE TWO WHEELER COMPANIES IN INDIAis anoriginal work carried out in the 5th and 6th trimester of myMBA(2008-2010) underthe guidance of ... Thisproject is made exclusively as a part of mycurriculum and will not besubmitted in future to any other university or institution.Date:Projectsformba.blogspot.com pg. 2Projectsformba.blogspot.com CERTIFICATE This is to certify that., student of Christ University of Management,Bangalore, has completed this research project titled ACOMPARISON STUDY ONTHE TOP THREE TWO

WHEELERCOMPANIES IN INDIA under my guidance from in partialfulfillment of the Masters of Business Administration degree... PROFESSOR,MARKETING DEPT. CHRIST UNIVERSITY INSTITUTE OFMANAGEMENT BANGALOREProjectsformba.blogspot.com pg. 3Projectsformba.blogspot.com ACKNOWLEDGEMENTIt is withimmense satisfaction and pride that, I am completing myDissertation Project report. I therefore, would like to stop for a fewmoments and thank Christ University Institute of Management,Bangalore and .. for allowing me to take up myDissertationProject on comparison study of two wheeler companiesin India . I am also very thankful for his extensive support, timelyguidance and regular monitoring our progress and providingvaluable inputs from time to time. Sincere thanks to all therespondents, for parting their valuable time and being so patientinsharing the relevant information. I also express my overriding 55. debts and thanks to my friends, without whose help it would havebeen impossible to complete my project. Last but not the least; Iwould like to thank all those concerned people who have directly orindirectly contributed in the completion of this entire dissertationreport.Projectsformba.blogspot.com pg. 4Projectsformba.blogspot.comContentsDECLARATION.............................. ..........................................................................................................2CERTI FICATE.......................................................................................................... .................................3ACKNOWLEDGEMENT............................................. ...............................................................................4 1.1 Introduction to Indian TwowheelerSector:............................................................................10 1.2Evolution of Two-wheeler Industry inIndia:..............................................................................11 1.3 ProfileChange in Indian TwoWheelerIndustry........................................................................14 1.4 KeyEarningsDrivers.......................................................................................

...........................152.1 COMPANY PROFILE....................................................................................................... ................17 2.2 Hero Honda MotorsLimited................................................................................................ ......18 2.3 CorporateProfile:............................................................................................ ...........................18 2.4 Missionstatement:.......................................................................................... ..........................20 2.5 HERO HONDASMANDATE:..................................................................................... ..................20 2.6 S.W.O.TANALYSIS:...................................................................................... .............................21STRENGTHS:............................................................... ......................................................................21WEEKNESS:....................... ................................................................................................................21 2.7 HERO HONDAS COREVALUES.............................................................................................. ...22 2.8 Product range of HEROHONDA............................................................................................... .23 2.9 BAJAJ autoltd............................................................................................................ ...............27 2.11 BAJAJ AUTOSMISSION:......................................................................................... .................29Projectsformba.blogspot.com pg. 5Projectsformba.blogspot.com 2.12 SWOTAnalysis............................................................................................... .. 56. ........................29 2.13 The InevitableChange........................................................................................... ..................31 2.14 Product range ofBajaj............................................................................................................ .32 2.15

CurrentSituation............................................................................................. ........................35 CurrentPerformance...................................................................................... .............................35 2.16 The Industry Analysis - Five ForcesAnalysisBAL...................................................................36 ExternalEnvironment..................................................................................... .............................36 2.17 Product & Advertising Strategies OFBAL................................................................................37 2.18Strategies &Implementation............................................................................................ ......38 FMCG BusinessModel.............................................................................................. ....................38 2.19 Other StrategicIssues.............................................................................................. ................39 2.20 Strategies for the OverseasMarkets.......................................................................................40 2.21R&D........................................................................................................ .................................41 2.22 TheFuture...................................................................................................... .........................42 2.23 New Strategies adopted byBajaj.............................................................................................432.24 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.)Ltd.(HMSI)....................................................44 2.25 About HondaMotorcycle & Scooter India Pvt.Ltd..................................................................44 2.26 CORPORATEPROFILE................................................................................. ..............................45 2.27 MissionStatement.......................................................................................... ........................46 2.28 SWOTAnalysis............................................................................................... ..........................46 2.29 PRODUCTRANGE:.......................................................................................

............................47 2.30 Market growth and market size(HMSI)..................................................................................50 2.31Strategy of rivals VsHMSI.......................................................................................................5 1 2.32 Strategy ofHMSI........................................................................................................... ..........53 2.34 Strategy adopted by TVS & Bajaj for increasingsales and countering growth of HMSI...........53 2.35 Review of 57. strategies adopted byHonda..................................................................................543.1RESEA RCHDESIGN................................................................................................. .......................58Projectsformba.blogspot.com pg. 6Projectsformba.blogspot.com 3.2 STATEMENT OFPROBLEM................................................................................................ .........58 3.3HYPOTHESIS........................................................................................... ...................................59 3.4 AIMS ANDOBJECTIVES......................................................................................... .....................60 3.5 SAMPLINGTECHNIQUE............................................................................... ..............................60 3.6 SAMPLEUNIT................................................................................................ ............................60 3.7 SAMPLESIZE................................................................................................ ..............................60 3.8 STATISTICALDESIGN.................................................................................. ................................61 3.9 PRIMARYDATA............................................................................................. .............................61 3.10 SECONDARYDATA...................................................................................... .............................62 3.11 LIMITATIONS OFSTUDY......................................................................................................

.....624.1 RESPONDENTSPROFILE........................................................................... .....................................64 4.2SEX........................................................................................................... ..................................64 4.3 MARITALSTATUS......................................................................................... ..............................65 4.4OCCUPATION.......................................................................................... ...................................66 4.5AGE.......................................................................................................... ..................................67 4.6INCOME................................................................................................... ..................................695.1 DATAANALYSIS............................................................................................ ................................71 5.2 OWNERSHIP OF TWOWHEELER............................................................................................. .71 5.3 MOST VIEWEDADS................................................................................................. ..................72 5.4 MOST INFLUENTIAL ADS.........................................................................................................735 .5 BEST RECALLED 58. ADS............................................................................................................... ..74 5.6 MOST COMMON SOURCE OFADS.............................................................................................755.7 SOURCE OF RELIABLE INFORMATION FOR PURCHASEDECISIONS............................................76 5.8 FACTORS WHICHMOTIVATE PURCHASINGDECISION...............................................................78 5.9PREFERRED PRICE RANGE(in000s)........................................................................................... 795.10 RATING FOR VARIOUS FACTORS(1 LEAST PREFERREDAND 7

MOST PREFERRED)...................81 5.11 ISCROSSCHECKINGDONE?....................................................................... ..............................83Projectsformba.blogspot.com pg. 7Projectsformba.blogspot.com 6.1 DEMAND AND GROWTHDRIVERS...................................................................................... ......85 PersonalIncome............................................................................................. ..............................86 Demography andInspiration................................................................................................ ........86 PenetrationLevel............................................................................................ .............................86 OtherFactors.................................................................................................. .............................86 7.1FINDINGS................................................................................................. .................................87 8.1 HYPOTHESISTESTING................................................................................ ................................89 9.1RECOMMENDATIONS............................................................................ ....................................91 Scaling Up ServiceCenters.............................................................................................. .............92 Focus on Easy CreditLending................................................................................................ .......92 Investment in Research andDevelopment..................................................................................92Foc us on Exports and GlobalMarket...........................................................................................921 0.1LEARNINGS............................................................................................. .................................93 11.1BIBLIOGRAPHY..................................................................................... ....................................95

12.1QUESTIONNAIRE.................................................................................. ....................................98Projectsformba.blogspot.com pg. 8 59. Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 9Projectsformba.blogspot.com1.1 Introduction to Indian TwowheelerSector:The Indian automotive industry consists of five segments:commercial vehicles; multi-utilityvehicles & passenger cars; twowheelers; three-wheelers; and tractors. With 7,822,963 unitssold inthe domestic market and 753,591 units exported during the first ninemonths ofFY2007, the industry (excluding tractors) marked a growthof 43% over the correspondingProjectsformba.blogspot.com pg. 10Projectsformba.blogspot.comprevious. The two-wheeler sales havewitnessed a spectacular growth trend since the midnineties.India isthe second largest producer and manufacturer of two-wheelers in theworld. Indiantwo-wheeler industry has got spectacular growth in thelast few years. Indian two-wheelerindustry had a small beginning inthe early 50s. The Automobile Products of India (API)startedmanufacturing scooters in the country.Bikes are a major segment ofIndian two wheeler industry, the other two being scootersandmopeds. Indian companies are among the largest two-wheelermanufacturers in the world.Hero Honda and Bajaj Auto are two ofthe Indian companies that top the list of worldcompaniesmanufacturing two-wheelers.The two-wheeler market was opened toforeign companies in the mid 1980s. The openness ofIndian marketto foreign companies lead to the arrival of new models of twowheelers intoIndia. Easy availability of loans from the banks,relatively low rate of interest and thediscount of prices offered by thedealers and manufacturers lead to the increasing demand fortwo-wheeler vehicles in India. This lead to the strong growth of Indianautomobile industry.1.2 Evolution of Two-wheeler Industry in India:Two-wheeler segment is one of the most important components ofthe automobilesector that has undergone significant changes due toshift in policy environment. The twowheeler industry has been inexistence in the country since 1955. It consists of threesegmentsProjectsformba.blogspot.com pg.

11Projectsformba.blogspot.comviz. scooters, motorcycles and mopeds.In India there are some MNCs and Indian companydealing inautomobile sector. The main key players who are dealing in thissector are HeroHonda, Bajaj, Yamaha, Honda, and TVS. HeroHonda is the biggest player in this sector inIndia as well as in theworld and playing a very important role in two wheelerautomobilesector. Hero Honda, Bajaj and TVS are the Indiancompanies and Yamaha & Honda areinternational automobile brand.Bajaj is the first Indian two wheeler automobile company in themarket since1945 with the name M/s Bacharj trading corporationprivate limited. In 1959 M/s Bacharjtrading corporation privatelimited change its name as Bajaj Auto Ltd. Bajaj Auto obtainslicense 60. from the Government of India to manufacture two- and three-wheelers vehicles in1959. Hero Honda Motors Limited wasestablished in 1984, as a joint venturebetween Indias Hero Group(worlds largest bicycle manufacturers) and Japans HondaMotorCompany. And created the worlds single largest two wheelercompany and also one of themost successful joint venturesworldwide. During the 80s, Hero Honda became the firstcompany inIndia. Over 19 million Hero Honda two wheelers running on Indianroads today. TVS Motors is the third largest company in the twowheeler industry with amarket share of 16%. Infect, it is the onlyIndian company without a foreign collaboration inthe two-wheelerindustry. When the company opted out of the collaboration withSuzuki in2002, many believed that TVS was headed towardsextinction. But the company proved thedoomsayers wrong and cameout with a very successful `TVS Victor. TVS Motors Ltd.originallyincorporated in 1982 to manufacture twowheelers in collaborationwith SuzukiMotors of Japan, TVS was one of the leaders in two-wheeler industry.Projectsformba.blogspot.com pg. 12Projectsformba.blogspot.com Yamaha Motor Corporation is the automobile company of Japan(1953) which works in India since 1955and providing latest technology in India from lasttwo decades.Yamaha Motor India was incorporated in august 2001 as a 100%subsidiary ofYamaha motor corporation, Japan Honda motors ofJapan is not a new name in the

two wheeler scenario in thecountry,they were in a tie up with the Firodias owned Kinetic group.However in the late 90sthey parted ways after problems arose overissues like introduction of new models,advertising expenditure,marketing strategies and other related issues. In the mid 80Hondamotors of Japan joined hands with the largest bicycle makerof India the Hero cycles to createHero Honda which in a couple ofdecades or so have gone on to become the single largestmotorcyclecompany in the world. Though Honda has come on its own on theIndian marketyet it will be providing technological support to HeroHonda for the next ten years. Thuspresenting a unique situation inwhich the company will be in direct competition with thecompanywhich it has been associated for nearly two decades. HondaMotorcycles andScooters India limited, a 100% subsidiary of Hondamotor company Japan eventually enteredthe Indian market withHonda Unicorn in 2004.Projectsformba.blogspot.com pg. 13Projectsformba.blogspot.com1.3 Profile Change in Indian Two-Wheeler IndustryThe demand shift from scooters to motorcycles inthe 1990s was without parallel in anycomparable product category inIndia. This was mainly attributed to the change incustomerspreference towards fuelefficient and aestheticallyappealing models, which scootermanufacturers failed to provide. The 61. delayed launch of new, advanced scooter models, fear offourstrokescooters being prone to increased skidding risks and vibrations, andthe difficultyof maintenance also contributed to thisshift.Interestingly, the growth in the motorcycle segment was mainlydriven by the demand fromrural and semi-urban consumers. Anestimated 60% of the demand for motorcycles camefrom rural andsemi-urban customers. The rise in their disposable incomes onaccount ofgood monsoons in the 1990s provided the normallyconservative rural and semi-urbancustomers with extra money thatinduced them to experiment with new, innovativeproducts.Projectsformba.blogspot.com pg. 14Projectsformba.blogspot.comShift from Scooter to MotorcycleScooter Motorcycle Moped Year Total In 000 Overall Growth No. %No. % No. %

1993 1,503.36 -6.40 709.73 47.2 379.06 25.2 414.5727.6 1994 1,770.22 17.75 840.17 47.5 472.58 26.7 457.47 25.8 19952,209.23 24.80 1,033.52 46.8 652.01 29.5 523.70 23.7 1996 2,660.0420.41 1,223.43 46.0 809.53 30.4 627.08 23.6 1997 2,963.49 11.411,301.05 43.9 978.68 33.0 683.76 23.1 1998 3,042.85 2.68 1,262.7041.5 1,131.31 37.2 648.84 21.3 1999 3,403.43 11.85 1,325.87 39.01,395.66 41.0 681.90 20.0 2000 3,745.55 0.80 901.88 24.0 2,156.0358.0 687.64 18.0Source: (SIAM). No. Number of Units (in000)Advanced technology, larger wheelbase, higher groundclearance and the ability to ride onbad roads with less effort and lessdanger of skidding and decreased maintenance cost werethe otherfactors that encouraged customers to choose motorbikes over othertwo-wheelers.1.4 Key Earnings DriversBelow are the key factors,which strongly affect the auto industry: -Government policy impacton petrol prices: Petrol prices determine the running cost oftwo/threewheelers expressed in Rupees per kilometer.Petrol prices are thehighest in India as GOI subsidizes kerosene and diesel. But withtherecent change in GOI policy to reduce the subsidy, the prices ofpetrol will remain constant atthe current prices. This will have apositive effect on purchases of two/three wheelers.Improvement indisposable income: With the increase in salary levels, due to entryofmultinationals following liberalization process and fifth paycommission, the disposableincome has improved exponentially overthe years. This will have multiplier effect ondemand for consumerdurables including twowheelers.Changes in prices of second-handcars: The second hand car prices of small cars havecome downsharply in the recent past. This will shift the demand from higher-end two-wheelers to cars and affect the demand for two-wheelersnegatively. A further drop inProjectsformba.blogspot.com pg. 15Projectsformba.blogspot.comsecond-hand car prices will lead topressure on the two-wheeler majors who plan to releasehigherendscooters and motorcycles.Implementation of mass transport system:

62. Many states have planned to implement masstransport systems instate capitals in the future. This will have negative impact ondemand fortwowheelers in the long run. But taking into account thedelays involved in implementationof such large infrastructureprojects the demand to be affected only five to seven years downtheline.Availability of credit for vehicle purchase: The availability andcost of finance affects thedemand for two- and three-wheelers as thetrend for increased credit purchases for consumerdurables haveincreased over the years. Therefore, any change with respect to anyof thesetwo parameters as a result of change in RBI policy has to beclosely watched to assess thedemand for two- and threewheelers.Projectsformba.blogspot.com pg. 16Projectsformba.blogspot.com 2.1 COMPANYPROFILEProjectsformba.blogspot.com pg. 17Projectsformba.blogspot.com2.2 Hero Honda Motors Limited HeroHonda Motors Limited was established in 1984, as a joint venturebetweenIndias Hero Group (worlds largest bicycle manufacturers)and Japans Honda MotorCompany. In 1985 production began withthe launch of its first motorcycle, the CD100,which gave 80 km tothe liter. In 1987 the engine plant was started and in 1989 theCompanyproduced its 3,00,000th motorcycle. In 2001 Hero Hondamanufactured its 50,00,000thmotorbike. Hero Honda has areputation of being the most fuel-efficient and the worldssinglelargest two wheeler Company. Shri Brijmohan Lall Munjal is thechairman andmanaging director of this Company. As early as in1960s very few Indian bicycle manufacturers were interestedinexports. However, the hero groups foray into the overseas marketsin 1963 pioneered Indianexports in the bicycle segment. It was moreprompted essentially by the need to remainattuned to the globalmarketplace. While initial exports were restricted to Africa andthemiddle east, today more than 50% of the exports from HeroCycles Ltd. Meet the demands ofsophisticated markets in Europeand America. This is primarily because of appropriateproductdevelopment and excellent quality that hero offers..

Hero Honda hasgrown like no other company in the auto business. Severaltimes inthe path, savvy observers have insisted that it has grown just too bigand that nocompany its size can continue to show growth rates. ButHero Honda has ignored that opinionand continued growing at theplace it has set many years ago. Hero Honda today faces morecompetitor than it has ever in the history. Nowthat is the undisputedtwo wheeler Numero Uno in the country. Every single twowheelermanufacturer in India if looking market share away from it.More over for the first time thereare so many four- strokechallengers in the market. And Hero Hondas best selling productsareageing.2.3 Corporate Profile:Projectsformba.blogspot.com pg. 18 63. Projectsformba.blogspot.com The joint venture between Indias HeroGroup and Honda Motor Company, Japan hasnot only created theworlds single largest two wheeler company but also one of themostsuccessful joint ventures worldwide. During the 80s, HeroHonda became the first company in India to prove that it waspossibleto drive a vehicle without polluting the roads. The companyintroduced newgeneration motorcycles that set industry benchmarksfor fuel thrift and low emission. Alegendary Fill it - Shut it - Forgetit campaign captured the imagination of commuters acrossIndia, andHero Honda sold millions of bikes purely on the commitment ofincreased mileage Over 19 million Hero Honda two wheelers treadIndian roads today. These are almostas many as the number ofpeople in Finland, Ireland and Sweden put together! Hero Honda hasconsistently grown at double digits since inception; and today,everysecond motorcycle sold in the country is a Hero Honda. Every30 seconds, someone in Indiabuys Hero Hondas top sellingmotorcycle Splendor. This festive season, the company soldhalf amillion two wheelers in a single montha feat unparalleled inglobal automotivehistory. Hero Honda bikes currently roll out fromtwo globally benchmarked manufacturingfacilities based atDharuhera and Gurgaon in Haryana. These plants together arecapable ofchurning out 3.9 million bikes per year. A third state of theart manufacturing facility atHardwar in

Uttranchal will soon becommissioned to cope with sustained customer demand. HeroHondas extensive sales and service network now spans over 3000customertouch points. These comprise a mix of dealerships, serviceand spare points, spare partsstockiest and authorized representativesof dealers located across different geographies.Hero Honda values itsrelationship with customers. Its unique CRM initiative HeroHondaPassport Program, one of the largest programs of this kind inthe world, has over 3 millionmembers on its roster. The program hasnot only helped Hero Honda understanditsProjectsformba.blogspot.com pg. 19Projectsformba.blogspot.comcustomers and deliver value at differentprice points, but has also created a loyal communityof brandambassadors. Having reached an unassailable pole position in theIndian two wheeler market, HeroHonda is constantly workingtowards consolidating its position in the market place. Thecompanybelieves that changing demographic profile of India, increasingurbanization and theempowerment of rural India will add millions ofnew families to the economic mainstream.This would provide thegrowth ballast that would sustain Hero Honda in the years tocome.As Brijmohan Lall Munjal, the Chairman, Hero Honda Motorssuccinctly points out, "Wepioneered Indias motorcycle industry,and its our responsibility now to take the industry tothe next level.Well do all it takes to reach there.2.4 Mission statement: Hero 64. Hondas mission is to strive for synergy between technology,systems and humanresources, to produce products and services thatmeet the quality, performance and priceaspirations of its customers.At the same time maintain the highest standards of ethics andsocialresponsibilities. This mission is what drives Hero Honda to newheights in excellence and helps theorganization forge a unique andmutually beneficial relationship with all its stake holders.2.5 HEROHONDAS MANDATE:Projectsformba.blogspot.com pg. 20 Spare parts are toocostly.OPPOURTUNITIES:Projectsformba.blogspot.com pg. 21Its market share is reducing from last few years. They have biggap between cubic capacities of its products. Not fit for rulerIndia. Suppose to be very

sophisticated. The company hasclarified about its intention of setting a third plant in addition to itsexisting two plants. The company has embarked upon a green fieldexpansion plan and has earmarked Rs 2 bn for the same. It should benoted that the company has a strong cash flow position; it generatedRs 9 bn from operation in FY04 and is virtually a debt freecompany.WEEKNESS: Debt equity ratio is only 0.1. Bestcustomer preference. It gives better service for customers. It hasa good brand image. It has the highest share in automobile sector. Better sale service. Huge sale network (3500 Dealers). HeroHonda gives 80 Km/Liter Avg. Hero Honda introduced Firststroke bike in the Indian market. Projectsformba.blogspot.comHero Honda is a world leader because of its excellent manpower,provenmanagement, extensive dealer network, efficient supply chainand world-class products withcutting edge technology from HondaMotor Company, Japan. The teamwork andcommitment aremanifested in the highest level of customer satisfaction, and this goesa longway towards reinforcing its leadership status2.6 S.W.O.TANALYSIS:STRENGTHS: Decreasing market share.2.7 HERO HONDAS COREVALUESProjectsformba.blogspot.com pg. 22 The cost of theproduct is very high in comparison to other companies. Mainthreats to Hero Honda are their competitors like:- o Bajaj Auto Ltd. oTVS motors Ltd. o Yamaha Motors India. o Honda motorcycle andscooter India. As government polices are amended againstpollution in metro cities, Hero Honda being 4 stroke bikemanufacture have great opportunities to explore its new innovationsand technologies.THREATS: They have big opportunities inheavy bike segments. There is large no. of young consumers in themarket. Company has to focus on them. They should go in newsegments of bikes. Hero Hondas the first manufacture to launcheco friendly bikes with 4-stroke engines. They have attained a 65. stronger good will and popularity in the industry and the consumers. Projectsformba.blogspot.com Prompts transparency Enables relationship buildings. Is a caringorganization? Providing learning environment. Is selfreliant.Provide fearless, enjoyable working environment. Is striving

forexcellence. Is a boundary less organization? Is a responsiveorganization? Respect for Human Beings. Projectsformba.blogspot.com & Is performance oriented?2.8Product range of HEROHONDAScootersProjectsformba.blogspot.com pg. 23 Is creativitypromoting. trust.Projectsformba.blogspot.com HeroHonda Pleasure Hero HondaPleasure Manufacturer Hero Honda motorcycle Ltd. Production2005 -present Price Rs. 37990 Engine 102 cc, 7bhp@ 7000 rpm,torque 0.78 kg- m @5000 rpm Motorcycles CD Dawn CD Deluxe Splendour + Splendour NXG Passion pro Passion plus SuperSplendour Glamour Glamour PGMF1Projectsformba.blogspot.com pg. 24Projectsformba.blogspot.com Achiever CD Dawn CBZ XTREME HUNK Karizma Karizma ZMR Features of a few bikes fromabove mentioned list from HERO HONDA are as follows.. CDDawn Manufacturer Hero Honda motorcycle Ltd. Production 2003-present Price Rs. 37990 Engine 97.2 cc, 7.7 ps@ 7500 rpm,torque0.77 kg -m @6000 rpm CD Deluxe CD Deluxe ManufacturerHero Honda motorcycle Ltd. Production 2007-present Price Rs.40,000 Engine 97.2 cc, 7.7 ps@ 7500 rpm, torque0.77 kg -m @6000rpmProjectsformba.blogspot.com pg. 25Projectsformba.blogspot.com Splendor + Splendor + ManufacturerHero Honda motorcycle Ltd. Production 2003-present Price Rs.40,400 Engine 97.2 cc, 7.7 ps@ 8000 rpm, torque7.95 N-m @5000rpm Hunk Karizma ZMR Hunk Manufacturer Hero Hondamotorcycle Ltd. Production 2007present Price Rs. 63,000 Engine150 cc, 14.4 ps@ 8500 rpm, Manufacturer torque12.8 N-m @6500rpm Hero Honda motorcycle Ltd. Production 2009present Price Rs.91,000Projectsformba.blogspot.com Engine 223 cc, 17.6bhp@ 7000rpm, pg. 26 torque18.35 N-m @6000 rpmProjectsformba.blogspot.com Karizma ZMR2.9 BAJAJ auto ltdSince 1986, there is a technical tie-up of Bajaj Auto Ltd. withKawasaki HeavyIndustries of Japan to manufacture state-of-art rangeof latest twowheelers in India. The JVhas already given the Indianmarket the KB

series, 4S and 4S Champion, Boxer, theCaliberseries, and Wind125 Kawasaki Heavy Industries is a Fortune 66. 500 company with a turnover of USD 10billion (Rs. 45,840 crore). Ithas crafted new technologies for more than hundred years.Thetechnologies of KHI have redefined space systems, aircrafts, jetengines, ships, locomotive,energy plants, automation system,construction machinery, and of course high reliability two-wheelersProjectsformba.blogspot.com pg. 27Projectsformba.blogspot.com KHI has given the world its legendaryseries of 600-1200cc Ninja and 1600 Vulcanbikes. Straight from itsdesign boards, the Kawasaki Bajaj Eliminator, Indias first realcruiserbike, redefines the pleasure of "biking" in looks as well asperformance.2.10 Corporate Profile Inspiring Confidence, thetagline, has build up confidence, through excitementengineering, notonly to domestic consumers but also internationally. Established justeightdecades back in 1926 by Jamnalal Bajaj, the company has beenvested with Indias largestexporter of two and three wheelers,196,710 units in 2004-05, a great 26 per cent jump overthe previousyear. Bajaj Auto Ltd. sales have increased by approximately 21 percent in the year2004-05, which exceeds Rs 65.4 billion, a record inthe history of the company. The grossoperating profit stands at Rs.9.3 billion, again a record. The profits after tax of the BAL arecloseto Rs. 7.7 billion, and the pre-tax return on operating capital is at animpressive 80 percent. The strength of the company is its qualityproducts, excellence in engineering anddesign, and its ability todelight the customers. The Pulsar, introduced in November 2004,iscontinually dominating the premium segment of the motorcyclemarket, helping to maintainthe market superiority. Discover DTSi,one more successful bike on Indian roads, is in thevalue segment ofthe motorcycle market. It incorporates a high degree of power withfuelefficiency of a 100 cc motorcycle. BAL is committed toprevention of pollution, continual improvement ofenvironmentperformance and compliance with all environmentallegislation and regulations. TheyalwaysProjectsformba.blogspot.com pg.

28Projectsformba.blogspot.combelieve in providing the customer valuefor money and keep an special eye upon quality,safety, productivity,cost and delivery. Extensive R Product design and developmentcapabilities. Highly experienced management. 2.11 BAJAJAUTOS MISSION: We at Bajaj Auto continue to firmly believe inproviding the customer Value formoney, for years through ourproducts and services. This we shall maintain and improve, In ourdecision making, quality, safety and service will be given asmuchconsideration as productivity, cost and delivery. Quality shallbe built into every aspect of our work life and businessoperations.Quality improvements and customer satisfaction shall bethe responsibility of everyemployee.2.12 SWOT AnalysisLets 67. analyze the position of Bajaj in the current market set-up, evaluatingits strengths,weaknesses, threats and opportunitiesavailable.Strengths & High performance products across allcategories.Projectsformba.blogspot.com pg. 29 Widespreaddistribution network. D focus. The competition catches-up any new innovation in notime.Projectsformba.blogspot.com pg. 30 Growing world demandfor entry-level motorcycles especially in emerging marketsThreatsThe growing gearless trendy scooters and scooterette market.More maturity and movement towards higher-end motorcycles.Untapped market above 180 cc in motorcycles. Double-digitgrowth in two-wheeler market. Not a globally recognizable brand(unlike the JV partner Kawasaki)Opportunities Not a global playerin spite of huge volumes. Still has no established brand to matchHero Hondas Splendor in commuter segment. Hasnt employed theexcess cash for long. High economies of scope.WeaknessesHigh economies of scale. Great financial support network (Forfinancing the automobile) High export to domestic sales ratio. Projectsformba.blogspot.com Margins getting squeezed from both the directions (Price as well asCost)2.13 The Inevitable ChangeBajaj on internal analysis found thatit lacked 1. The technical expertise to deliver competitive goods.2.The design know-how.3. And the immediate inability to support theonslaught of competitors. All these forced Bajaj to look for

aninternational partner who could bring intechnology and also offersome basic platforms to be manufactured and marketed inIndia.Kawasaki of Japan is a world-renowned manufacturer of highperformance bikes. Bajajentered into a strategic tie-up withKawasaki in late 1990s to enhance its product line andknowledgeup-gradation to support long-term strategies. This served the purposeof sustaining the market competition for a while. From 1996to 2000,Bajaj invested hugely in infrastructure while simultaneouslydeveloping productdesign and innovation capabilities, which is theprime reason behind the energetic Bajaj of21st century. Bajajintroduced a slew of products right from entry-level motorcycle tothehigh premium segment right from 2001 onwards, and since thenits raining success all theway for Bajaj.Projectsformba.blogspot.compg. 31 Threat of cheap imported motorcycles from China. Projectsformba.blogspot.comProjectsformba.blogspot.com Last quarter, Bajaj had impressiveperformance growing at a rate of 20%+ when thelargestmanufacturer grew at just 6%. This stands a testimony to the variousimportantstrategic decisions over the past decade.2.14 Product range 68. of BajajMotorcycles: PULSAR 135 LS PULSAR 150 DTS-i PULSAR 180 DTS-i PULSAR 220 DTS-i DISCOVER 135 DTSiProjectsformba.blogspot.com pg. 32Projectsformba.blogspot.com DISCOVER DTS-i PLATINA 125 PLATINA 100 AVENGER 200 DTS-i KAWAZAKI NINJA250RFeatures of a few bikes from above mentioned list from BAJAJare as follows.. Bajaj Pulsar 220 DTS-i PULSAR 220 DTS-i BajajDiscover DTS-i Manufacturer Bajaj Auto Production 2008presentPrice Rs. 78,200 Engine 220 cc ,21.04 @ 8500 (Ps @ RPM) 19.12@ 7000 (Nm @ RPM) Manufacturer Bajaj Auto Production 2005present Price Rs.47000-49200Projectsformba.blogspot.com pg. 33Engine 135 CC ,9.64kw (13.10 ps) @ 8500rpm,11.88 nm @ 6500rpm / 1.21 kgmProjectsformba.blogspot.comDISCOVER135 DTS-i Bajaj PlatinaPLATINA 125 cc Bajaj Avenger DTS-i Manufacturer Bajaj AutoProduction 2006-present Price Rs. 38621 Engine

125CC,8.5PS@7000rpm,10NM@4000rpm. Manufactur Bajaj Auto er Production2005-present Price Rs. 64,524AVENGER 200 DTS-i Engine 200cc,17.51 PS @ 8000 rpm 16.78 Nm @ 6000rpmProjectsformba.blogspot.com pg. 34Projectsformba.blogspot.com2.15 Current SituationCurrentPerformance.C BAL is currently outperforming the industry growthrate in two-wheeler segment with32% growth in year 2004-05 v/sindustry growth of 19%.3 Market share in Motorcycles is improvingwith every passing year. It has also increasedfrom 28% in 2004-05 to31% in 2005-06.f Annual turnover for the year 2005-06 is Rs. 81.06billion v/s Rs. 63.23 billion a yearbefore - an increase of 28% whichis very healthy.b BAL has significant presence in all the three basicsegments - Price Segment, ValueSegment and Performance Segment- and has been showing increased sales in all thesegments overyears.Besides this, BAL is a market leader in two-wheeler exportsand it consists a great chunk ofthere overall revenues. Currently,BAL is selling over 1 lac motorcycles annually in SriLanka, further,they are commanding 50% market share in CentralAmerica.Projectsformba.blogspot.com pg. 35Projectsformba.blogspot.com2.16 The Industry Analysis - FiveForces Analysis-BALExternal EnvironmentIndustry: Automobiles:Two WheelersSegments: Presence in all segmentsEntryBarriers:Entry barriers are high.E The market runs on higheconomies of scale and on high economies of scope.E The need fortechnical expertise is high.E Owning a strong distribution network isimportant and is very costly.All these make the barrier high enoughto be a deterrent for new entrants.Supplier Bargaining 69. Power:Suppliers of auto components are fragmented and areextremely critical for this industry sincemost of the component workis outsourced. Proper supply chain management is a costly yetcriticalneed.Buyers Bargaining Power:Buyers in automobile market havemore choice to choose from and the increasingcompetition is drivingthe bargaining power of customers uphill. With more models tochoosefrom in almost all

categories, the market forces haveempowered the buyers to a large extent.Industry Rivalry:Theindustry rivalry is extremely high with any product being matched ina few months bycompetitor. This instinct of the industry is primarilydriven by the technical capabilitiesacquired over years of gestationunder the technical collaboration with internationalplayers.Substitutes:There is no perfect substitute to this industry.Also, if there is any substitute to a two-wheeler,Bajaj has presence init. Cars, which again are a mode of transport, do never directlycompeteProjectsformba.blogspot.com pg. 36Projectsformba.blogspot.comor come in consideration whileselecting a two-wheeler, cycles do never even compete withthe lowentry level moped for even this choice comes at a comparativelyhigher economicpotential.Summarizing the industry analysis, it canbe said that the two-wheeler market is attractive asit scores well onthree out of five categories2.17 Product & Advertising Strategies OFBALThe focus of BAL off late has been on providing the best of theclass models at competitiveprices. Most of the Bajaj models comeloaded with the latest features within the price bandacceptable by themarket. BAL has been the pioneer in stretching competition intoprovidinglatest features in the price segment by updating the lowprice bikes with the latest featureslike diskbrakes, anti-skidtechnology and dual suspension, etc.BAL adopted differentmarketing strategies for different models, few of them arediscussedbelow: -Kawasaki 4S - First attempt by bajaj to make amark in the motorcycle segment. The targetcustomer was the fatherin the family but the target audience of the commercial was the soninthe family. The time at which Kawasaki 4S was launched HeroHonda was the marketleader in fuel-efficient bikes and Yamaha inthe performance bikes.The commercial of Kawasaki 4S had thepunch line "Kyun Hero" means "now what hero"which reflected theaggressiveness in the marketing front by the company.Boxer - It tookthe reins from where the Kawasaki 4S left. Target was the ruralpopulationand the price sensitive customer. Boxer marketed as avalue for money bike with

greatProjectsformba.blogspot.com pg. 37Projectsformba.blogspot.commileage. Larger wheelbase, highground clearance and high mileage were the selling factorsand it wasin direct competition to Hero Honda Dawn and SuzukiMX100.Caliber - The focus for the Caliber 115 was youth. And 70. though Bajaj made the bike lookbigger and feel more powerful thanits predecessor (characteristics that will attract theaverage, 25-plus,executive segment bike buyer), its approach towards advertising isevenmore radically different this time around. Bajaj gave themandate for the ad campaign toLowe, picking them from the cliqueof three agencies that do promos for the company (theother twobeing Leo Burnett and O&M). Going by the initial market response,the campaignwas clearly a hit in the 5-10 years age bracket. So, theteaser campaign and the emphasis onthe Caliber 115 being a`Hoodibabaa bike placed it as a trendy motorcycle for the college-goers and the 25 plus executives both at the same time.Pulsar -Pulsar was launched in direct competition to the Hero Hondas CBZmodel in 150cc plus segment. The campaign beared innovativepunch line of "Definitely Male" positioningPulsar to be a masculine-looking model with an appeal to the performance sensitivecustomers.The Pulsar went one step ahead of Hero Hondas CBZ and launched atwinvariant of Pulsar with the 180 cc model. The model was a greatsuccess and has alreadycrossed 1 million mark in sales.Discover -The same DTSI technology of Pulsar extended to 125 cc Discoverwas a greatsuccess. With this, Bajaj could realize its success ridingon the back of technologicalinnovation rather than the joint ventureway followed by competitors to gain market share.2.18 Strategies &ImplementationFMCG Business ModelBAL now is taking a leaf outof the FMCG business model to take the company togreaterheights.Bajaj has kicked off a project to completelyrestructure the companys retail network andcreate multiple saleschannels.Projectsformba.blogspot.com pg. 38Projectsformba.blogspot.comOver the next few months, thecompany will set-up separate sales channels for every segmentof itsbusiness and

consumers. Bajaj Autos entire product portfolio, fromthe entry-level tothe premium, is being sold by the same dealers. Therestructuring will involve separate dealernetworks catering to theurban and rural markets as well as its three-wheeler andpremiumbikes segments.Bajaj Auto also plans to setup anindependent network of dealers for the rural areas. Theneeds offinancing, selling, distribution and even after-sales service arecompletely differentin the rural areas and do not makes sense for citydealers to control this. The company alsoplans to set-up exclusivedealerships for its three-wheeler products instead of having themsoldthrough an estimated 300 of its existing dealers.2.19 Other StrategicIssuesCash is strength: Bajaj Auto has been sitting on a cash pile forover five years now. Over thenext couple of years, competition in thetwo-wheeler market is set to intensify. TVS Motorsand Hero Hondaare on a product expansion binge. To fight this battle and retain itshard-earned market share in the motorcycle segment, Bajaj Auto willneed its cash muscle. A lookat its own story over the past five years 71. provides valuable insight.Delisting worry: What is worrying is thatthere is an idea to delist the investment company(also an indirectindication that it would be listed initially). This would be closing thevalve ofequitable ownership distribution.There is a hint of a buybackof shares of the investment company as this is the only way it canbedelisted. The company would not be short of cash to put throughsuch a buyback.Factors such as low valuation, low trading interestand the need to provide shareholders maybe cited as plausiblereasons for the buyback.Stake for Kawasaki: Bajaj Autos attempt tovest the surplus cash in a separate companymay be a prelude tooffering a stake to Kawasaki of Japan in the equity of theautomobilecompany. The latter has been playing an increasinglyactive role in Bajajs recent models, andits brand name is also morevisible in Bajaj bikes than in the past.Projectsformba.blogspot.compg. 39Projectsformba.blogspot.comBetter value proposition: Shareholderinterests may be better served if the cash is retained topursue growthin a tough market. This would also obviate the need to fork-out

fancysums asstamp duty to the government for the de-merger. Acombination of a large one-time dividendand a regular buybackprogram through the tender route may offer better value. Astrategicstake for Kawasaki would only positively influence thestocks valuation.2.20 Strategies for the Overseas MarketsBajaj Autolooks at external markets primarily with three strategies: -1) Amarket where all BAL need to do is distribute through CKD or CBUroutes.2) Markets where BAL need to create new products.3)Markets where BAL need to enter with existing products andprobably with a gooddistributor or a production facility or a jointventure.Earlier, most of the products that Bajaj exported werescooters and some motorcycles.However, in its target markets, likein India, the shift was towards motorcycles. With theexpansion inBajajs own range to almost five-six platforms of motorcycles, it hada betteroffering to export, also the reason for its stronger showing.For the last fiscal, 60 per cent ofits exports were two-wheelers andthe rest three-wheelers. Of the two-wheeler exports, closeto 90 percent were motorcycles.Bajaj has identified certain key markets,which hold potential. Its first overseas officeestablished at the JebelAli free trade zone has been the focal point for exports tomiddleAfrica and the Saharan nations. Egypt and Iran also continueto be strong markets for Bajaj.The other market, which would be afocus area, is South America, where the company feels itis fairlywell represented in most countries, except in Brazil, the largestmarket. The companyProjectsformba.blogspot.com pg. 40Projectsformba.blogspot.comrecently participated in a large autoexhibition in Brazil and found good consumer acceptanceto products 72. like Pulsar and Wind 125.The other focus area is the ASEANnations, which constitute the third biggest consumer oftwo-wheelers.The biggest among them is Indonesia, where Bajaj distributors arelooking tointroduce eco-friendly four-stroke auto rickshaws. Buttwo-wheeler market requires greatdeal of effort from BAL.Everybody is there with Honda leading the show. TheresSuzuki,Kawasaki and some Korean and Chinese models. BALshould look at the right product mixfor two-wheelers. Bajajs

Pulsarmodel has taken off well there. It also wants to develop anew stepthrough model for the Indonesian market, but for now it will create abase therewith its motorcycle models.Bajaj has also made abeginning by selling bikes in the Philippines branded in the name ofitstechnical partner, Kawasaki. The two signed an MoU in February.Kawasaki, a large multiproduct conglomerate, only makes high-endbikes and does not have sub200cc models.Kawasaki is marketingthe new model, Wind 125, developed by both companies, inthePhilippines. The Bajaj-developed models, Caliber and Byk, whichis a fuel-efficient bike, arealso being distributed by Kawasaki. Thisis a good beginning strategically for Kawasaki toevince interest inBajaj products for markets which can still buy less than 150 cc.2.21R&DBajaj Auto has a huge, extensive and very wellequippedResearch and Development winggeared to meet two criticalorganizational goals: development of exciting new productsthatanticipate and meet emerging customer needs in India andabroad, and development of eco-friendly automobiletechnologies.While the manpower strength of the R&D represents across-section of in-depth design andengineering expertise, thecompany has also been investing heavily in the latest,sophisticatedtechnologies to scale down product developmentlifecycles and enhance testing capabilitiesBajaj Auto R&D alsoenjoys access to the specialized expertise of leadinginternationaldesign and automobile engineering companies workingin specific areas.Projectsformba.blogspot.com pg. 41Projectsformba.blogspot.comBased on their own brand ofglobalization, they have built their distribution network over60countries worldwide and multiplied the exports from 1% of totalturnover in Fiscal 1989-90to over 5% in Fiscal 1996-97.Thecountries where their products have a large market are USA,Argentina, Colombia, Peru,Bangladesh, Sri Lanka, Italy, Sweden,Germany, Iran and Egypt. Bajaj leads Colombia with65% of thescooter market, in Uruguay with 30% of the motorcycle market andin Bangladeshwith 95% of the three-wheeler market.Several newmodels are being developed specifically for global markets and withthese thecompany

will progressively endeavor to establish itspresence in Europe too.2.22 The FutureAlthough the avalanche ofmotorcycles offered Indian consumers a wide variety of models 73. tochoose from, it also resulted in increased pressure on thecompanies to concentrate on cost-cuts, technology enhancementsand up-gradations and styling. Their margins came underpressure asmarketing costs escalated.The companies were forced to reduceprices and offer discounts to survive the competition.Moreover,analysts were skeptical about the segments ability to maintain thegrowth rate inthe years to come. One of the major assumptionsunderlying the motorcycles rush was that ifthe market wasconsiderably large and was growing at a constant pace, there wasroom for aprofitable existence for all brands.In 2001, there were over30 motorcycle brands in the market. However, with the topfivebrands accounting for more than 60% of the market, only 40% ofthe market was availablefor all other new brands put together.Despite the launch of more vehicles, the survivalprospects of manyof the individual brands were deemed to be ratherbleak.Projectsformba.blogspot.com pg. 42Projectsformba.blogspot.comFurther, the growth in the motorcyclesegment was dependant on continuing favorable marketconditions.Analysts claimed that to sustain this growth rate, the segment wouldhave tocompletely cannibalize the market for scooters and aconsiderable part of the market forscooters and mopeds.Consideringthe fast growing scooter segment, with high demand from femalecustomers,followed by the moderately growing moped segment andthe restructuring in the scootersegment with major national andforeign players reinforcing their presence, it was unlikelythat theentire growth in the two-wheeler sector would be due tomotorcycles.Analysts also commented that as the two-wheelerindustry had grown steadily for eight years,stages in the product lifecycle would apply to the field sooner, rather than later and thedeclinestage would invariably come some day. There was littledifferentiation between thebrands being launched apart from stylingas most companies had introduced their four-strokevehicles.With

thefailure of the joint ventures, the expected introduction of cheaperChinese brands,stringent emission norms and threat from majorinternational players, the survival ofindigenous brands lookeduncertain. Constrained with the ruling price levels in themarketplace, limited infrastructure and lack of technologicalinnovations when compared to theirforeign counterparts, whether theIndian companies would succeed in generating the kind ofvolumesneeded to sustain in the competitive motorcycle market, remains tobe seen.2.23 New Strategies adopted by BajajMajor emphasis to beon new product launches.Have a new scooter market underdevelopment will be launched early 2010.Plan to launch a three-wheeled motorcycle, to cater to a niche segment.Bajaj expectsstronger growth in the first quarter of FY10 powered by thecontinuing success of theXCD 135 DTS-Si as also the launch of 74. product upgrades off the Pulsar platformAs a result of the recentstake hike by Bajaj Auto, KTM now has Rajiv Bajaj on its board andthecooperation agreement between the two companies coversproduct development, technology, vendorsourcing and distribution.Existing Products New Launchs in2009Projectsformba.blogspot.com pg. 43Projectsformba.blogspot.comBajaj Bajaj Kristal DTSi XCD 135DTSi Pulsar XCD Sprint Discover 135 DTSi Discover 100 DTS-SiPlatina 100, 125 DTSi Kawasaki Ninja 250R2.24 HONDAMOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.(HMSI) Honda isthe worlds largest manufacturer of 2wheelers. Its symbol, theWings,represents the companys unwavering dedication in achievinggoals that are unique and aboveall, conforming to internationalnorms. These wings are now in India as Honda Motorcycle &ScooterIndia Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda MotorCompany Ltd.,Japan. These wings are here to initiate a change andmake a difference in the Indian 2-wheeler industry. Hondas dreamfor India is to not only manufacture 2-wheelers of globalquality, butalso meet and exceed the expectations of Indian customers withoutstanding aftersales support.2.25 About Honda Motorcycle &Scooter India Pvt. Ltd.Official Name Honda Motorcycle & ScooterIndia Pvt.

Ltd.Projectsformba.blogspot.com pg. 44Projectsformba.blogspot.comEstablished 20th Aug, 1999PlaceManesar, District Gurgaon, Haryana, IndiaInvestment Rs. 300CroreRepresentative Mr. Shinji Aoyama, President & CEOFactoryLocation Manesar, District Gurgaon, Haryana, IndiaProductionCapacity 10,000,00 Units per Year Hondas dream for India is to notonly manufacture 2-wheelers of global quality; butalso meet andexceed the expectations of Indian customers with outstanding aftersalessupport. They aim to produce technologically superior, efficientand reasonably priced 2-wheelers, with Honda tested technology,backed up with after sales service of Hondas globalstandard.2.26CORPORATE PROFILE Honda Motor Co., Ltd., operates under thebasic principles of "Respect for theIndividual" and "The ThreeJoys"-commonly expressed as The Joy of Buying, The Joy ofSellingand The Joy of Creating. Respect for the Individual" reflects ourdesire to respect theunique character and ability of each individualperson, trusting each other as equal partners inorder to do our best inevery situation. Based on this foundation of Respect for theIndividual,"The Three Joys" expresses our belief and desire that eachperson working in, or coming intocontact with our company, directlyor through our products, should share a sense of joythrough thatexperience. In line with these basic principles, since its establishmentin 1948, Honda Motor Co.,Ltd., has remained on the leading edge by 75. creating new value by providing products oftheProjectsformba.blogspot.com pg. 45 HMSI is the subsidiary company of Honda Motors Ltd. Which is thelargest company in the proposed sectorProjectsformba.blogspot.compg. 46 Honda having high tech engines Honda is the firstcompany who introduced the technology of central shock absorptionin India Honda have a big share of market in scootreats segmentAffordable price Reliable brand name Projectsformba.blogspot.comhighest quality at a reasonable price,for worldwide customer satisfaction. In addition, theCompany hasconducted its activities with a commitment to protecting theenvironment

andenhancing safety in a mobile society. The Companyhas grown to become the worlds largest motorcycle manufacturerandone of the leading automakers. With a global network of 454*subsidiaries and affiliatesaccounted for under the equity method,Honda develops, manufactures and markets a widevariety ofproducts ranging from small general-purpose engines and scooters tospecialtysports cars, to earn the Company an outstanding reputationfrom customers worldwide.2.27 Mission Statement Maintaining aglobal viewpoint, we are dedicated to supplying products of thehighestquality at a reasonable price for worldwide customersatisfaction.2.28 SWOT AnalysisStrength Threat of cheap imported motorcycles and components fromChina2.29 PRODUCT RANGE: SCOOTERS: DIOProjectsformba.blogspot.com pg. 47 There is high competitionin the market Honda can be use brand image of HeroHondaThreats More maturity and movement towards higherendmotorcycles Untapped market above 180 cc in motorcycles.Increase in product range Maintenance cost is veryhighOpportunity Low product range Spares parts are not easilyavailable Market share very less as compare to there competitorLess number of service center Projectsformba.blogspot.comWeaknessProjectsformba.blogspot.com ACTIVA AVIATORMOTORCYCLES: CB TWISTER SHINE CBF STUNNER UNICORN CBF STUNNER PGM FI CB1000R CBR1000RRFeatures of a few bikes from above mentioned list fromHONDA are as follows.. Activa ACTIVA Manufacturer HondaMotors Ltd. Production 2004-present Price Rs. 40661 Engine 4-stroke, air cooled,7 bhp @ 7000 rpm,102ccProjectsformba.blogspot.com pg. 48 76. Projectsformba.blogspot.com CB Twister CB TWISTERManufacturer Honda Motors Ltd. Production 2010 ONWARDSPrice Rs 48,000 Engine 110cc,9bhp@8000 CBF STUNNER PGMFI rpm,9Nm@6000rpm CBF STUNNER Manufacturer HondaMotors Ltd. PGM FI Production 2010 ONWARDS Price Rs48,000Projectsformba.blogspot.com pg. 49 Engine125cc,11.6bhp@8000 rpm,11.2Nm@6250rpmProjectsformba.blogspot.com UNICORNUNICORN

ManufacturerHonda Motors Ltd. Production 2005-present Price Rs 63,000 Engine150cc,13.3bhp@8000 rpm,12.8N- m@5500rpm.2.30 Market growthand market size (HMSI)Projectsformba.blogspot.com pg. 50Projectsformba.blogspot.comThe automobile industry has seen anoverwhelming growth in liberal India. Almost everybigmanufacturer has made its presence felt in the country. After theforeign direct investmentregulations were removed, manymanufacturers saw India as a potential market. Most of theautomanufacturers were in collaboration with the Indian companies after91 till 99, whenthe rules were changed; some of them still enjoythat. With many foreign manufacturerseyeing India as the market,the giants were no exception and most of them are alreadyhavingtheir manufacturing or assembling facilities in India. Hondawas into the Indian two-wheelerindustry from 1983, when it joinedhands with Hero to start Hero Honda and with Kinetic tostart KineticHonda. Honda broke the ties with Kinetic in 99 and set up its own100%subsidiary called Honda Motorcycle and Scooter India (HMSI)Pvt. Ltd.HMSI laid its foundation stone in Manesar, Haryana in thesame year and also signed anagreement with Hero that it wontmanufacture motorcycles for the next five years i.e. till2004 as HeroHonda was not into the scooter segment at that time. This gaveHonda a licenseto manufacture scooters at will and it did that byrolling out its first scooter, Activa in 2001and followed it with Dio inthe same year. Honda now enjoys a large chunk of market shareinthe scooter segment with Activa, Dio and now Aviator as itsproducts. Honda introducedits first motorcycle, Unicorn in 2004 inthe 150cc segment which was followed by Shine inthe 125ccsegment in 2006 followed by Stunner in the same segment in 2008.All thesemotorcycles were highly appreciated and instant hits in thegrowing Indian market whichover these years was mainly dominatedby Hero Honda and Bajaj Auto Ltd.The main rivals HMSI iscountering are BAL, Hero Honda and TVS in themotorcyclesegment and TVS, Hero Honda and Mahindra Kinetic inthe scooter segment. HMSI is themarket leader in the scootersegment and is yet to have a major share

in the motorcyclesegmenteven though it is growing at 32.24% on a monthly basis.The bikesegment has a market growth rate of 43% with HMSI having a share 77. of 18% Thebiggest rival in this segment is HMSIs sister concernHero Honda with a share of 55%. Thescooter segment is having agrowth rate of 32.24% and HMSI having a market share of57.7%.The nearest rival in this segment is TVS motors with a share of18.7%.2.31 Strategy of rivals Vs HMSIIn 2007, out of every 100two-wheelers sold in the country - only 12 were scooters.Thatnumber went up to 16 in the past financial year and is projectedto zoom to almost 20 thisProjectsformba.blogspot.com pg. 51Projectsformba.blogspot.comyear. Theres more: the scooter marketgrew in double digits last fiscal, outperforming thetwowheelermarket, which grew 2.6 per cent in the same period. The golden daysof theearly 80s, when scooters had a 64 per cent market share, arestill far away. But the revivalsignals are strong.Scootermanufacturers said the 1.14 million-strong domestic market wasexpected to cross 2million units in the next four years. That explainsthe entry of a host of newer players in thesegment, such asMahindra-Kinetic and Yamaha. Sensing competition, theestablishedplayers Honda, TVS Motors, Bajaj Auto, Hero Hondaand Suzuki have hit the drawingboard once again, to pull outflashy, high-powered and un-geared scooters.Scooter productionstands at roughly 20% of the overall two-wheeler productionYearTwo Wheelers Production (Bikes + scooters) 2002-03 5,076,2212003-04 5,622,741 200405 6,529,829 2005-06 7,608,697 2006-078,466,666 2007-08 8,026,681 2008-098,418,626(http://www.siamindia.com/scripts/productiontrend.aspx)HMSI has 55 per cent market share, followed by TVSMotors with 19 per cent and HeroHonda with 14.5 per cent and Bajajmanaging a 11% market share. Sales Growth / Decline % ProjectedMarket share % * Growth% HMSI 55 32.24% 18% TVS 19 14% 7Bajaj 11 -12% NA* based on year on year comparison with sales inJuly 2008* Comparison of scootersales.Projectsformba.blogspot.com pg. 52Projectsformba.blogspot. The Company has entered the bikes marketsince 2004. This has led to a

certain degree of cannibalism betweenHero Honda The company would focus on gearless scooters in thefuture and with the launch of the new Activa, HMSI is looking at atotal of 18% growth in its two-wheeler sales in the next fiscal, 2009-10. Honda to exit geared scooter segment in India, the Japanesetwo-wheeler major Honda will exit the geared scooter market inIndia and phase out its 150 cc model Eterno as the companyplans to focus on the gearless segment. com2.32 Strategy of HMSI& Honda remains committed to its promise to deliver superiortechnology and performance, even though HMSI products are pricedrelatively higher than other companies in the market.2.34 Strategyadopted by TVS HMSI has a one-month waiting period for its new 78. Activa (110 cc); six months before, it was just 10 days. Encouraged,it is ramping up its monthly production to 60,000 from 40,000earlier. HMSI. However, Honda motor company stands to gain outof either companys success. & Bajaj for increasing sales andcounteringgrowth of HMSIMost companies currently producescooters in the 100-125cc range that are targeted atcustomers whowant higher mileage and are ready to compromise on power.Generally, anentry-level bike (100cc) is more powerful andeconomical than a gearless scooter.To counter this, companies areworking on scooter models that generate higher powerwithoutundermining the fuel economy. The result will be a productthat matches the performance ofmotorcycles while being morecomfortable, agile and easy on the pocket.They also aim atdeveloping E- scootersProjectsformba.blogspot.com pg. 53 The countrys second largest bike maker, Bajaj Auto, is alsodeveloping a completely new, un-geared, scooter. To be launched in2011, it is aimed at taking on the products of HMSI. This productwill be high on power output, like the companys current bike range,but will not sacrifice on fuel economy.2.35 Review of strategiesadopted by HondaThe first bike launched by Honda, Unicorn waslaunched in the existing 150cc segmentwhich was mainly dominatedby Pulsar series and later TVS Apache also chipped in withinthecompetition. Same was the case with

Shine, its second bike in the125cc segment. Afterthis, Honda slightly moved away fromconvention by adopting a new strategy ofsegmentation by creating asegment within two existing segments. In 2008, Honda launcheda125cc Stunner CBF intended for not the conventional 125ccsegment but just between 125ccand 150cc segment. Honda did notcompromise on the feature rich and technologically soundproductand not on the price either. The price of this bike was 50-60thousand, thusovercoming the price void between the 150cc and125cc bikes. The competitors sell their125cc bikes at 40-50 thousandwhile the price of 150cc segment starts somewhere around60thousand. This pricing strategy of Honda has paid well and nowthey are planning topenetrate the gap between the existing 100cc and125cc segments by launching a new featureladen and technologicallysound 100cc bike. Again Honda has clearly announced that thepriceof this bike wont be in the conventional 100cc range but slightlymore than that. SBU Market Market Share Market Share RelativeQuadrant Growth Rate Of Nearest Market ShareRivalProjectsformba.blogspot.com pg. 54 Chennai-based TVSMotors, makers of Scooty, are developing a premium ungearedscooter that will be more powerful and superior on design andstyling. The company is learnt to have developed a new platform, 79. much more powerful than the 90cc Scooty. Projectsformba.blogspot.comProjectsformba.blogspot.com Bikes 43 18 55 0.33 Question MarkScooters 32.24 57.7 18.7 3.08 StarProjectsformba.blogspot.com pg.55Projectsformba.blogspot.com RELATIVE MARKET SHARE STARQuestion Mark (Scooters) (Bikes) 10 CASH COW DOG0Projectsformba.blogspot.com pg. 56Projectsformba.blogspot.comMARKETGROWTHProjectsformba.blogsp ot.com pg. 57Projectsformba.blogspot.com 3.1 RESEARCH DESIGN3.2STATEMENT OF PROBLEM One of the major problem is thenegative growth being faced by companies in the two wheelerindustry. The two wheeler industry has been shrinking continuously.From a peak of over 40% growth in 2002 it is currently facing agrowth of -12% in the

second quarter of 2008. Exhibit shows therecent trends.Projectsformba.blogspot.com pg. 58Projectsformba.blogspot.com The above exhibit shows the De-growth in the industry.3.3HYPOTHESISProjectsformba.blogspot.com pg. 59Projectsformba.blogspot.comNull Hypothesis, H0 : There is anegative growth in the two wheeler industryAlternative Hypothesis,H1: There is no negative growth in the two wheeler industry.3.4AIMS AND OBJECTIVES To study and compare the top threecompanies HERO HONDA,BAJAJ,& HMSI To compare andanalyze the product strategies of these three companies. To find outthe reasons for change in growth of two wheeler industry.3.5SAMPLING TECHNIQUENon-probability sampling techniqueConvenience Sampling was used for collecting datafrom theconsumers for the survey.3.6 SAMPLE UNIT Sample units arenothing but the respondents covered during the process of collectingdata for the purpose of research. The sampling units consisted ofpeople who own a two wheeler.3.7 SAMPLESIZEProjectsformba.blogspot.com pg. 60Projectsformba.blogspot.comThe sample size is the total numbercount of the number of total respondents covered for theresearchpurposes.Total sample size =100Male 88Female- 123.8STATISTICAL DESIGN The data was collected and complied inMicrosoft Excel and is analyzed using graphs and pie charts.3.9PRIMARY DATA Primary data was collected through theadministration of questionnaires to the sample units and conducting a 80. pilot study to ascertain the worth of the questionnaire. Questionnaire Design Questionnaire Administration ScoringProcedure Pilot studyProjectsformba.blogspot.com pg. 61Projectsformba.blogspot.com3.10 SECONDARY DATA Secondarydata would be collected from internet, industry journals andmagazines. This information and the previous research papers willhelp in designing the questionnaires and various attributes on whichthe companies are to be assessed. The company dealers alsoprovided valuable information.3.11 LIMITATIONS OF STUDY Owing to the huge population size (sampling

universe) spanningthroughout the country, it becomes almost impossible to cover all theplaces in the given scope of study. The results thus obtained arejust an overview of the areas and companies covered. The datagathered and the results interpreted are what was done in a timeframe of 6 months and hence may not reveal the depth of thesituation. For the ease of analysis, percentage of respondents usingthe products was considered as the market share of the particularproduct in that category. This dissertation is confined on the basisof more secondary data collected only hence it is not very much areliable data for the study.Projectsformba.blogspot.com pg. 62Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 63Projectsformba.blogspot.com 4.1 RESPONDENTS PROFILE4.2SEX TABLE 3: SEX OF RESPONDENTS SEX NUMBER OFPERCENTAGE OF RESPONDENTS RESPONDENTS(%) Male 8888 Female 12 12Projectsformba.blogspot.com pg. 64Projectsformba.blogspot.com 88 males and 12 females were coveredduring the survey.Hence 88% of the respondents were males and therest 12% were females.4.3 MARITAL STATUS MARITALSTATUS OF RESPONDENTS MARITAL STATUS NUMBER OFPERCENTAGE OF RESPONDENTS RESPONDENTS(%)Unmarried 70 70 Married 30 30Projectsformba.blogspot.com pg. 65Projectsformba.blogspot.com MARITAL STATUS MARRIED 30%SINGLE 70% Out of the total respondents ,70% were single,30%were married and separated factor was not taken into account.4.4OCCUPATION OCCUPATION OF RESPONDENTSOCCUPATION NUMBER OF PERCENTAGE OFRESPONDENTS RESPONDENTS STUDENTS 68 68 SELFEMPLOYED 20 20 WORKING 12 12Projectsformba.blogspot.compg. 66Projectsformba.blogspot.com Among the 100 people surveyed ,68%were students,20% were self-employed and remaining 12% belonged 81. to working class like office goers, clerks etc.4.5AGEProjectsformba.blogspot.com pg. 67Projectsformba.blogspot.comAGE GROUP NUMBER

OFPERCENTAGE OF RESPONDENTS RESPONDENTS18-22 1010%2225 60 60%25-30 20 20%>30 10 10% AGE 18 - 22 10% > 3010% 25 - 30 20% 22 - 25 60% Of the 100 respondents, 60%belonged to 22-25 age group,20% to 25 -30 group,10% to18-22group and the remaining 10% to more than 30 agegroup.Projectsformba.blogspot.com pg. 68Projectsformba.blogspot.com4.6 INCOME MONTHLY NUMBEROF PERCENTAGE OF INCOME(IN RESPONDENTSRESPONDENTS 000S)RS. <20 30 30% 20-30 55 55% 30-40 1010% >40 5 5% 30% of the total respondents earn less than Rs.20,000 per month,55% of the respondents earn Rs. 20,000-30,000per month,10% of the respondents earn Rs .30,000-40,000 per monthand 5% of respondents earn more than Rs. 40,000 permonth.Projectsformba.blogspot.com pg. 69Projectsformba.blogspot.comProjectsformba.blogspot.com pg. 70Projectsformba.blogspot.com 5.1 DATA ANALYSIS5.2OWNERSHIP OF TWO WHEELER YES 80% NO20%Projectsformba.blogspot.com pg. 71Projectsformba.blogspot.com ANALYSIS: 80% of the respondentsown a two wheeler and 20 % of them do not have one.INTERPRETATION: Since majority of my respondents are studentsfrom colleges, they own two wheelers for daily commutation. Eachone of them own different brands according to the taste andpreferences of the two wheelers available in the market. The mostcommon brands are Hero Honda, Bajaj, Honda.TVS etc.5.3 MOSTVIEWED ADSHERO HONDA 50%BAJAJ 40%HMSI10%Projectsformba.blogspot.com pg. 72Projectsformba.blogspot.com MOST VIEWED ADS HEROHONDA, 50 50 45 BAJAJ, 40 40 35 30 25 20 15 HMSI, 10 10 5 0HERO HONDA HMSI BAJAJ ANALYSIS: The viewership rate ofads among respondents is highest for Hero Honda with 50%,thencomes Bajaj with 40% and Honda with 10%. INTERPRETATION:Hero Honda and Bajaj being the long term rivals compete each otherto capture the market share. Hence if one of them comes with aneffective ad, the other will surely try to better it. In case of Hondaits a late entry into the Indian market and its growing.5.4

MOSTINFLUENTIAL ADS HERO HONDA 35% BAJAJ 55% HMSI10%Projectsformba.blogspot.com pg. 73 82. Projectsformba.blogspot.com ANALYSIS: In terms of influence ofads on the respondents, Bajaj comes with 55% , then Hero Hondawith 35% and Honda 10%. INTERPRETATION: Bajaj comes withads that has more adrenalin rush specially targeting the youth andmajority of them get inspired by the same. Hero Honda mainlydepends on celebrities to influence the viewers. Honda mainlyfocuses on the international reputation of brand name they have builtfor themselves. 5.5 BEST RECALLEDADSProjectsformba.blogspot.com pg. 74Projectsformba.blogspot.com ANALYSIS: In terms of recall ,50%of respondents were for Bajaj stunt ad, then 35% were for HeroHonda KARIZMA ad with Hrithik roshan as brand ambassador.INTERPRETATION: Bajaj came with stunt ads so that it may attractthe youth,and they positions their bike mainly high performing,aggressive, reliable. Hero Honda comes with the fan base of itsbrand ambassador who very well connects with the features of thebike .Very few recalled Honda bike ads as they were verystereotyped ads.5.6 MOST COMMON SOURCE OF ADSTV18%NEWSPAPER/MAGAZINES70%Projectsformba.blogspot.com pg. 75Projectsformba.blogspot.comBILLBOARDS 5%INTERNET7%ANALYSIS:Among the common source of ads, newspaper andmagazines are marked by 70% ofrespondents, TV by 18% ,Internetby 7% and Billboards by 5%.INTERPERTATION:Newspaper andmagazines comes with a lot of information related to bikes and it is amajorsource. Latest trend of internet penetration also brings in adson bikes ,mainly through socialnetworking sites, during onlinematches, events etc.5.7 SOURCE OF RELIABLE INFORMATIONFOR PURCHASEDECISIONS FRIENDS5%Projectsformba.blogspot.com pg. 76Projectsformba.blogspot.com INTERNET 65% AUTOMOTIVE10% MAGAZINES COMPANY 20% DEALERS ANALYSIS: Outof 100 respondents ,65% found internet as a good source of

reliableinformation,then with company dealers 20%,automotive magazines10%,friends 5%. INTERPRETATION: The various web sites on thenet provide valuable information regarding the bikes. With theavailability of net, people can browse about any information aboutanyProjectsformba.blogspot.com pg. 77Projectsformba.blogspot.com model before going to any dealer.Company dealers provide specific information and in depth about aparticular model. The rest is from friends and auto magazines.5.8FACTORS WHICH MOTIVATE PURCHASING DECISION.DISCOUNT RATE 30% EMI 45% RESALE VALUE 12% 83. ALLOWANCES 8% OTHERS 3%Projectsformba.blogspot.com pg.78Projectsformba.blogspot.com ANALYSIS: EMI is one of the majormotivating factor with 45% liking it,then comes discount rate30%,resale value 12%,allowances 8%,and others 3%INTERPRETATION: EMI comes with a great motivational factor inpurchasing a bike. It is less risky ,and affordable way of purchasing.Discount rate normally comes during festival seasons wheremaximum sales happen. Resale value has few effects on certainbranded bike purchases.5.9 PREFERRED PRICE RANGE(in 000s)30-40 5% 40-50 5% 50-60 13% 60-70 65% 708010%Projectsformba.blogspot.com pg. 79Projectsformba.blogspot.com >80 2% ANALYSIS: The mostpreferred price range is 60-70 with 65% going for this option.13%for 50-60, 10%for 70 to 80, 5% each for 30-40 & 40-50.and 2% formore than Rs.80,000. INTERPRETATION: Most of theperformance, value segment bikes falls in the 60-70 price category,and there is huge competition among the major players. Then thepreferred ones are high performance bikes in the >Rs. 70,000 andmedium performance and high efficient ones in the <Rs.60,000category .Projectsformba.blogspot.com pg. 80Projectsformba.blogspot.com5.10 RATING FOR VARIOUSFACTORS(1 LEAST PREFERRED AND7 MOSTPREFERRED)Projectsformba.blogspot.com pg. 81Projectsformba.blogspot.com ANALYSIS: In this the most preferredfactor is performance with 75% going for it. Then comes service

andsupport and fuel efficiency with 90% and 70% in terms ofpreferences. This is followed by price and brand value of the bike.INTERPRETATION: Performance is one factor which most of thepeople specially youth look upon in a two wheeler. Also thecompanies have come upon with a segment of this categoryandProjectsformba.blogspot.com pg. 82Projectsformba.blogspot.com have developed bikes based on this.The customers also look into the after sales and support the companyoffer when going for a two wheeler. Hence the service offered is ofprime importance. The price is an important factor for mediumsegment people that is below Rs.60,000 as they try to balance priceas well as efficiency of two-wheeler. Brand value plays a major rolefor loyal customers for eg. A person buys only HONDA, because itsone of the internationally trusted brands.5.11 IS CROSSCHECKINGDONE? YES 20% NO 80%Projectsformba.blogspot.com pg. 83 84. Projectsformba.blogspot.com ANALYSIS: Only 20% say that theydo cross checking of what they see in the commercial,80% do not doit INTERPRETATION: Most of the viewers see the ads and getsome information regarding it with very few doing crosscheckingabout what really is behind the scenes.Projectsformba.blogspot.compg. 84Projectsformba.blogspot.com 6.1 DEMAND AND GROWTHDRIVERSProjectsformba.blogspot.com pg. 85Projectsformba.blogspot.comThe following factors play a major rolein increasing the demand for two wheelers in India.Personal Income,demography and penetration level are key growth drivers in thetwowheeler industry.Personal IncomeDemand increases as theincome increases, only to be substituted later by the demand forfourwheelers. Income has been steadily growing in India and isprojected to stabilise at a growthrate of 9-12 percent range by2012.Demography and InspirationThe bigger the young and workingpopulation, the greater is its need for commutation. The ITand BPOrevolution has influenced this movement. This is a favourable factorsince Indianworkforce is young.Penetration LevelThe lower thepenetration levels in the market, the better the scope

for futuredemand. As thepenetration of the rural market is significantly low, itis going to be a significant long termgrowth driver.OtherFactorsImprovement in infrastructure increases competition, whilesimultaneously improving thepublic transport. The average timeperiod taken to replace an existing bike with a newermodel hasdecreased from 7 years to 5 years, resulting in replacement demandgrowth.Projectsformba.blogspot.com pg. 86Projectsformba.blogspot.com 7.1 FINDINGSThe major findingsduring the data collection and analysis time can be summed up asfollows:Projectsformba.blogspot.com pg. 87Projectsformba.blogspot.com Interest rates are one of the primereasons for the sharp fall in demand. Many banks have increasedinterest rates which make two wheelers costlier. Difficulty inavailing loans, rising defaults, tightening of loan recovery laws andvarious other factors have dissuaded consumers from availing loansand led to further problems in credit lending. Increasing oil priceshave deterred many lower middle class families from buying twowheelers. Introduction of low priced cars will directly affect themarket. The family segment would want to gradually move from twowheelers to four wheelers. The major impact of this phenomenonwould be experienced in the 100-125 cc two wheelers whereas theperformance segment i.e. > 125cc will continue to grow strongly. With the introduction of the Bharat -4 norms, it will be more 85. challenging to meet these stringent norms whilst simultaneouslyoffering competitive prices. In spite of these factors, demand driversare present for the foreseeable future and are favourable for the twowheeler industry. However, to capture this growth, any player willhave to correctly position itself to appeal to theconsumer.Projectsformba.blogspot.com pg. 88Projectsformba.blogspot.com 8.1 HYPOTHESIS TESTINGNullHypothesis, H0 : There is a negative growth in the two wheelerindustryAlternative Hypothesis, H1: There is no negative growth

inthe two wheeler industry.Projectsformba.blogspot.com pg. 89Projectsformba.blogspot.comPARAMETERS TO TESTHYPOTHESISSince the hypothesis is stated in absolute subjectiveterms, there was a requirement to convertthis subjectivity intoobjectivity to arrive at a stage for testing the hypothesis. Forperformingthis task, 7 product categories were selected and thecompanies were tried on the grounds of: Availability of product Number of customer complaints Dealers satisfaction level Areasof operation and design of distribution channels Hold on the marketshare Hence the companies were tested on these basis and hence theresults were compiled according to the respective product categoriesitself.RESULT OF HYPOTHESIS TESTINGThe overall researchand analysis of the two wheeler companies across these 7 categoriesledto the following result: Null hypothesis is accepted for theproduct categories of 100cc and 125cc segment as there is intensecompetition from fuel efficient small cars in India. Null hypothesisdoes not hold true for product categories like135cc,150cc,180cc,220cc.Since the null hypothesis does not holdtrue in majority of the product categories and hencethe nullhypothesis is not valid and hence, NULL HYPOTHESIS IS NOTPROVED. InIndian markets for majority of the two wheeler productcategories, Foreign companies havestreamlined their operations anddistribution channels in a much more effective way ensuringhigheravailability of their goods in the market in panIndia.Projectsformba.blogspot.com pg. 90Projectsformba.blogspot.com 9.1 RECOMMENDATIONSThefollowing recommendations are:Projectsformba.blogspot.com pg. 91Projectsformba.blogspot.com The two wheeler companies shouldfocus on gearless scooters. The market share of gearless scooters isincreasing at a healthy rate. Bajaj is virtually absent in this range thatcaters to the needs of women and families. Presently Honda, HeroHonda and TVS are big players in this segment. Entry into fourwheeler segment Bajaj has entered into a joint

venture with Renault-Nissan in the development of a small car priced at $3000. This is a 86. significant move because it directly competes with Tata NANO.Bajaj has also displayed its small car prototype in the recently heldauto expo. It promises double the mileage as compared to any car inthe economy segment and is also considering the option ofintroducing Diesel and LPG variants. The four wheeler segment willalso be able to hedge any risk that might arise because of the twowheeler industry and would profit from retaining consumersswitching from two wheelers. Scaling Up Service CentersCompanies need to scale up its service centers both in numbers andin capacity. Keeping in line with its growth target for the next 5years, the service centers should not only cater to two wheelers butshould also be upgraded to cater to the needs of four wheelers thatcompanies plans to launch. Focus on Easy Credit Lending Investment in Research and Development Focus on Exports andGlobal MarketProjectsformba.blogspot.com pg. 92Projectsformba.blogspot.com 10.1 LEARNINGSI had some majorlearnings while working on this research project which can besummarizedas follows:Projectsformba.blogspot.com pg. 93Projectsformba.blogspot.com Dream High because that will helpyou to Achieve Big. Systematic Planning is the essence for theproject. Making realistic time frame and following them ismandatory. Data Collection requires a lot of patience and followup. It requires meticulous research to select the right sample forresearch. Secondary data collection is also an important task andone must be aware which source is completely authentic and reliable. SMART 87. A project report on measuring customer satisfaction level and sales promotion in yamaha Document Transcript1. Projectsformba.blogspot.com SUMMER TRAINING PROJECT REPORT ONMEASURING CUSTOMER SATISFACTION LEVEL AND SALES PROMOTIONIN YAMAHA AT LAKHIMPUR and UNNAOSUBMITTED IN THE PARTIALFULFILLMENT FOR THE REQUIREMENT OF MBA

DEGREE SUBMITTED TO:(2008-2010) SUBMITTED BY: DR.BIMAL AGGARWAL HEMRUDRA PRATAPSINGH (DIRECTOR) MBA- III SEM. ROLL NO. 0825070024 BBS INSTITUTE OFMANAGEMENT STUDIES PLOT NO. 33, KNOWLEDGE PARK-III GREATERNOIDA, UTTAR PRADESH Projectsformba.blogspot.com2. Projectsformba.blogspot.com TO WHOMESOEVER IT MAY CONCERNThis isto certify that ., a student of Post Graduate DegreeinMBA, BBS Institute of Management Studies, Greater Noida has worked intheMARKETING DEPARTMENT, under the able guidance and supervisionof., in INDIA YAMAHA MOTORS Pvt. Ltd.The period forwhich he was on training was for 8 weeks, starting from ..ThisSummer Internship report has the requisite standard for the partial fulfillmentthePost Graduate Degree in Marketing. To the best of our knowledge no part of thisreporthas been reproduced from any other report and the contents are based onoriginalresearch. ACKNOWLEDGEMENT Projectsformba.blogspot.com3. Projectsformba.blogspot.comI express my sincere gratitude to my industry guide.. INDIAYAMAHA MOTORS, for his able guidance, continuoussupport and cooperationthroughout my project, without which the present workwould not have been possible.I would also like to thank the entire team of INDIAYAMAHA MOTORS, for the constantsupport and help in the successful completionof my project.Also, I am thankful to my faculty guide . of myinstitute, for hiscontinued guidance and invaluable encouragement. Candidatedeclaration Projectsformba.blogspot.com4. Projectsformba.blogspot.comI hereby declare that the work which is beingpresented in theproject report entitled Measuring Customer Satisfaction levelandSales promotion in the partial fulfillment of the requirement forthe award ofMaster of Business Administration of BBS Instituteof Management Studies, GreaterNoida of Uttar PradeshTechnical University, Lucknow is record of my own work andwascarried for a period of two months under the guidanceof.. of

commercial work of MarketingDepartment YamahaIndia Motors. TABLE OF CONTENTS Projectsformba.blogspot.com5. Chapter TopicNo.1.0 Industry Profile Projectsformba.blogspot.com 1.0 IndustryProfile 1.1 Competitors Analysis 1.2 Company Profile 1.3 Swot Analysis 1.4 Swotfor Two wheeler Industry 1.5 Swot for India Yamaha motors 1.6 Recent Launches1.7 Future Launches2.0 Critical Review of Literature3.0 Hypotheses4.0 ExecutiveSummary5.0 Research Design 5.1 Data Source 5.2 Research Approach 5.3Objectives 5.4 Research Design 5.5 Sample Design 5.6 Scope of Study 5.7Limitations of the study6.0 Data Primary Data Secondary Data7.0 Findings & 88. Analysis 6.1 Results of Customer Survey 6.2 Hypotheses TestsProjectsformba.blogspot.com6. Projectsformba.blogspot.com Chapter 1.01.0 Industry Profile1.1 CompetitorsAnalysis1.2 Company Profile1.3 Swot Analysis1.4 Swot for Two wheelerIndustry1.5 Swot for India Yamaha motors1.6 Recent Launches1.7 FutureLaunches Projectsformba.blogspot.com7. Projectsformba.blogspot.com1.0 INDUSTRY PROFILEAUTOMOBILEINDUSTRY TILL DATEThe automobile industry is one of the biggest industries inthe world. Being a majorrevenue and job generating sector it drives the economiesof some of the superpowersof the world. In India the automobile industry has grownby leaps and bounds since theadvent of the liberalization era the automobileindustry and especially the two wheelersegment has grown by leaps andbounds.The liberalization has done away with primitive and prohibitive practices oflicensing andrestricted foreign investment have been done away with. The result ofwhich was theentry of foreign players into the Indian market. The two wheelersegment was largelydominated by Automobile Products of India (API) and Enfieldin the 50s. Later ontowards the end of the 50s Bajaj Autos began importing Vespascooters from Italiancompany Piaggio. In the following decades the automobileindustry in India was mainlydominated by scooters with API and later Bajajdominating the market. There were veryfew products and choices available as faras motorcycle is concerned and Enfield bulletand Rajdoot dominated

themarket.The 80s saw the entry of Japanese companies in the Indian market with theopening upof the market to foreign companies. Hero Honda and TVS Suzuki arecompanies formedin this era of market reform. The market was still predominantlyscooter dominated andBajaj and LML were the leading brands producing theproducts at that time. Scooter wasviewed as a more family and utility friendlyvehicle than motorcycle and hence waspreferred. Projectsformba.blogspot.com8. Projectsformba.blogspot.comThe Japanese companies not only collaboratedwith Indian companies to produce thealready existing products but also brought innew technology as a result of which theever conquering 100cc bikes which wereextremely fuel efficient with 4 stroke engineswere launched in India. These provedto be highly successful as they provided a cheapand affordable means of personaltransport to all those who could not buy a car. Theflourishing middle class took agreat liking for these bikes and the bike sales in Indiabegan to grow exponentiallyyear on year leading to Hero Honda becoming the leader inthe two wheelerindustry in India and the largest producer of two wheelers in the world.The post 90sera was the era of liberalization and weakening of restrictive measures.Thegovernment went on an overdrive to support the industry and all FDI regulationsandlicensing was abolished. 100% FDI was allowed in the automobile industry andtheexcise duty was also considerably reduced to its current level of 12% on twowheelers.All these factors combined with the rising fuel prices, the increasingdispensableincomes of households, easy access to finance, etc. have led to twowheeler industrybecoming the backbone of the automobile industry in India.The twowheeler industry in India forms a major chunk of the automobiles produced inIndia.According to Society of Indian Automobile Manufacturers statistics for the year2008 89. 2009, two wheelers comprise 76.49% of market share among thevehiclesproduced in India.The production share of two wheelers is quite similar tothe market share. The twowheeler industry comprises around 74% of the totalautomobiles produced in India. TheSIAM data for the year 2008-09 states that8,418,626 two wheelers were producedduring the year

against a total of11,175,479vehicles produced during the year.SEGMENTATION OF TWOWHEELERA Two Wheeler Sector SubSegmenting in the three Segments. 1.Motorcycle 2. Scooter 3. Mopeds Projectsformba.blogspot.com9. Projectsformba.blogspot.com Domestic Market Share 2008 09 CommercialVehicles 3.95% Total Passenger Vehicles 15.96% Total Two Wheelers 76.49%Three Wheelers 3.60%1.1.1 Domestic Market Share 2008-09Projectsformba.blogspot.com10. Projectsformba.blogspot.com1.1 The Domestic Market Share of Two wheelersin 2008-09PAST YEAR REPORTIn the past year the sales of the automobilesegment has taken a setback and the twowheeler segment has not proved to beany exception. The two wheeler segment hassuffered a setback of over 7% duringthe past fiscal year but there have been signs ofrecovery in the current year.Projectsformba.blogspot.com11. Projectsformba.blogspot.com 1.2 Comparative Analysis of Domestic Sales ofAutomobiles 2008-09 1.3 Sales trend of automobiles for the last severalyearsProduction Trend Projectsformba.blogspot.com12. Projectsformba.blogspot.comIf we compare to the last year production of twowheelers it was around 8,026,681 out of10,853,930 but this year we have gotgrowth of 1.78%, this year production of twowheelers is around 8,418,626 out of11,175479 total automo