1

INTRODUCTION
India is the second largest producer of two wheeler in the world. In the last few years, the
Indian two wheeler industry has been spectacular growth. The country stands next to China and
Japan in terms of production and Sales respectively.
Majority of Indians, especially the youngsters prefer motorbikes rather than cars.
Capturing a large share in the two wheeler industry, bikes and scooters cover a major segment.
Bikes are considered to be the favorite among the youth generation, as they help in easy
Communication.
Large varieties of two wheelers available in the market, known for their latest technology
and enhanced mileage. Indian bikes, scooters and mopeds represent style and class for both men
and women in India
The study and analysis of Two-wheeler in Hero Two-wheeler company as the main
theme them of study.
Todays business operates in highly competitive environment. Marketing is most
dynamic and challenging function of modern business at this changing preference of people, the
business organizations are trying to attract customers at the possible extant. Companies are
creating new ways and tools to make the public know about their products.
Within in this exchange transaction customers will only exchange what they value
(money) if they feel that their needs are being fully satisfied; clearly the greater the benefit
provided the higher transactional value an organization can charge.
Marketing objectives, goals and targets have to be monitored and met, Competitor
strategies analyzed, anticipated and exceeded. Through effective use of market and marketing
research an organization should be able to identify the needs and wants of the customer and try
to delivers benefits that will enhance or add to the customers lifestyle. While at the same time
ensuring the satisfaction of these needs results in a healthy turnover for the organization.
Philip Kotler defines the marketing as Satisfying needs and wants through an exchange
processes.
2

NEED FOR THE STUDY
The main basic reason to the study the marketing mix strategies in Organization are to
evaluate the extent of satisfaction attained by the customer and the extent of fulfillment of needs
and wants of the customer.
Discounts and offers are one of the important tools of the sales promotional Strategy. The
study involves important that the discounts and offers have on the company in terms of Sales
Revenue, Market Share, Competitive advantage, Increase in Sales, attracting the Competitive
customers.
Hero Moto Corp Ltd. (formerly Hero Honda Motors Ltd) is the worlds largest two
wheeler manufacturer based in India* Worlds No.1 two wheeler company in terms of unit
volume sales in a calendar year.* The company was a joint venture between Indias Hero Group
and Honda Motor Company, Japan that began in 1984 later in 2011 it turn into Hero Motors
Limited.
Today, every second motorcycle sold in the country is a Hero bike. Every 30 seconds,
someone in India buys Hero splendor which is Indias selling motor cycle.* A popular
advertising campaign based on the slogan Fill it - Shut it - Forget it that emphasized the
motorcycles fuel efficiency helped the company grow at a double-digit pace since inception. The
technology in the bikes of Hero for almost 26 years (19842010) has come from the Japanese
counterpart Honda
The Companys growth in the two wheeler market in India is the result of an intrinsic
ability to increase reach in new geographies and growth markets. Hero Monocarps extensive
sales and service network now spans over to 5000 customer touch points. These comprise a mix
of authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.



3

OBJECTIVES OF THE STUDY
To analyze the marketing mix strategies of vara lakshmi motors ltd.
To analyze the products range and pricing strategies at vara lakshmi motors ltd.
To estimate the customers perception among major competitive brands analyzed.
To analyze the consumers purchasing power and buying behavior.
To analyze the various promotional strategies at vara lakshmi motors ltd.














4

RESEARCH METHODOLOGY
Methodology can prepare to the theoretical analysis of the methods appropriate to a field
of study or to the body of methods and principles to branch of knowledge.
A body practices, procedures, and rules used by those who in a discipline or engage in an
enquiry the branch of philosophy that analysis the principles and procedures of enquiry in a
particular discipline.
DATA COLLECTION METHODS:
PRIMARY SOURCES
QUESTIONNAIRES
SECONDARY SOURCES
DATA COLLECTION:
The data for the study has been adopted to collect data from the primary sources,
Secondary sources.
PRIMARY SOURCES:
Various techniques have been adopted to collect data from the primary sources.
QUESTIONNAIRES:
A well structured Questionnaire was developed for customers to extract information.
SECONDARY SOURCES:
To trace the origin, growth and performance of Hero the companys internal survey
record material, and business magazines, broachers and milestones are utilized.



5

LIMITATIONS OF THE STUDY
1. The scope has been confined to vizianagaram and surrounding areas.
2. The perceptual bias or attitude of respondents may also hurdles to the study.
3. The size of the sample is not consistent to the total customers.
4. Time is another major contrasting factor, as the project done in a time period of 40 days.















6

Frame Work of Study:
Chapter 1: It deals with introduction, need for the study, and objectives of the study,
methodology and limitations.
Chapter 2: It deals with industry profile of two- wheeler industry and company profile Sri vara
Lakshmi motors pvt Ltd, vizianagaram.
Chapter 3: It deals with theoretical frame work of study, about employee welfare measures.
Chapter 4: It deals with data analysis, tabulation and interpretation of the project study.
Chapter 5: It deals with findings and suggestion of the study.












7

Indian two wheeler industry
The two wheeler industry (hence forth TWI) in India has been in existence since
1955. It consists of the segments viz., scooters, motor cycles and mopeds. The increase in sales
volume of this industry is proof of its high growth. In 1971, sales were around 0.1 million units
per annum. But by 1988, had risen to 3 million units per annum.Similarly, Capacities of
production have also increased from about 0.2 million units of annual capacity in the seventies to
more than 4 million units in the late 90s.
The TWI in India began operations within the frame work of the national industrial
policy as espoused by the industrial policy resolution of 1956. This resolution divided the entire
industrial sector into three groups, of which one contained industries whose development was the
exclusive responsibility of the state and the private sector could be developed exclusively under
private initiative within the guidelines and the objectives laid out by the five year
plans(CMEI,1990).
Private investment was canalized and regulated through the extensive use of licensing
giving the state comprehensive control over the direction and pattern of investment. Entry of
firms, capacity expansion, choice of product and capacity mix and technology were all
effectively controlled by the state in a bid to prevent the concentration of the economic power.
However, due to lapses in the system, fresh Policies were brought in at the end of the sixties.
These consisted of MRTP of 1969 and FERA of 1973, which were aimed at regulating monopoly
and foreign investment respectively. Firms that they came under the preview of these acts were
allowed to invest only in a select set of industries.
This set of controls on the economy in the seventies caused several firms to-
Operate below the minimum scale of efficiency(henceforth MES)
Under-utilize capacity, and
Use outdated technology.
Low manpower

8

While operations below MES resulted from the fact that several incentives were given to smaller
firms, the capacity under utilization was the result of
(a) The capacity mix being determined independent of the market demand.
(b) The policy of distributing imports based on the capacity, causing firms to expand beyond
levels determined by demand so as to be eligible for more imports.
Use of outdated technology resulted from restrictions placed on import through the
provisions of FERA. Recognition of the deleterious effects of these policies led to the initiate of
reforms in 1975, which took on a more pronounced shape and acquired wider scope under the
new economic policy (NEP) in 1985. As part of these reforms, several groups of industries were
de-licensed and broad banding was permitted in select industries. Control over capacity
expansion was relaxed through the specification of the MES6 of production for several
industries. Foreign investment was allowed in select industries and norms under the MRTP act
were relaxed. These reforms led to a rise in the trend rate of growth of real GDP from 3.7% in
the seventies to 5.4% in the eighties. However the major set of reforms came in 1991 in response
to a series of macroeconomic crises that hit the Indian economy in 1990-91. Several industries
were deregulated, the Indian rupee was devaluated and made convertible on the current account
and tariff replaced quantitative restrictions in the area of trade. The initiation of reforms led to a
drop in the growth of real GDP between 1990-92, but this average at about 5.5% per annum after
1992. The decline in GDP in the years after reforms was the outcomes of devaluation and the
concretionary fiscal and monetary. Policies in 1991 to address the foreign exchange crisis. Thus
the industrial policy in India moved from a position of regulation and right control in the sixties
and seventies to a more liberalized one in eighties and nineties.
The two-wheeler industry in India has, to a great extent been shaped by the evolution of
the industrial policy of the country. Regulatory policies like FERA and MRTP caused the growth
of some segments in the industry like motorcycles to stagnate. These were later able to grow
(both in terms of overall sales volumes and number of players) once foreign investments were
allowed in 1981. The reforms in the eighties like broad building caused the entry of several
new firms and products, which caused the existing technologically, outdated products to lose
9

sales volume exit the market. Finally, with liberalization in the nineties, the industry witnessed a
proliferation in brands.
A description of the evolution of the two wheeler industry in India is usefully split up
into four 10 periods. This division traces significant changes in policy making. The first time
period 1960-1969 was one during which the growth of the two-wheeler industry was forecasted
through means like permitting foreign collaborations and phasing out of non-manufacturing
firms in the industry . The period 1970-1980 saw state control, through the use of the licensing
system and certain regulatory acts over the economy, at their peak.
During 1981-1991 significant reforms were initiated in the country. The final time
period covers the period 1991-1999 during which the reforms process was deepened. These
reforms encompassed several areas like finance, trade, tax, industrial policy etc., we now discuss
in somewhat greater detail the principle characteristics of each sub periods.
A) 1960-1969
The automobile industry being classified as one of importance under the industrial
policy resolution of 1948 was therefore controlled and regulated by the govt. In order to
encourage manufacturing, besides restricting import of complete vehicles, automobile assembler
firms were phased out by 1952 (Tariff commission, 1968), and only manufacturing firms
allowed continuing. Productions of automobiles were licensed, which meant that a firm required
a licensing approval in order to open a plant. It also meant that the govt. determined firms
capacity of production. During this period, collaborations with foreign firms were encouraged.
Table 1 illustrates the fact that most firms existing in this period had some form of collaboration
with foreign firms. Table 1 also gives the details of the various firms that existed in the industry
during this time period and the products they manufactured.
B) 1970-1980
This was a period during which all the overall growth rate of the two wheeler industry
was high (around 15% per annum). Furthermore, the levels of restriction and control over the
industry were also high. The former was the result of
10

The steep oil price hike in 1974 following which two-wheeler became popular modes of personal
transport because they offered higher fuel efficiency over cars/jeeps. On the other hand, the
introduction of regulatory policies such as MRTP and FERA Resulted in a controlled industry.
The impact of MRTP was limited as it effects only large firms like Bajaj auto Ltd. whose growth
rates were curbed as they came under the purview of this act. However, FERA had a more far-
reaching effect as it caused.
Foreign investment in India to be restricted. In the motorcycles segment FERA did not because
technological stagnation, as consequence of which, new products nor firms entered the market
since this segment depended almost entirely on foreign collaborations for technology. The
scooter and mopped segments on the other hand were technologically more self-sufficient and
thus there were two new entrants in the scooter segment and three in the moped segment.
C) 1981-1990
The technologically backwardness of the Indian two-wheeler industry was one of the
reasons for the initiation of reforms in 1981. Foreign collaborations were allowed for all two-
wheelers up to an engine capacity of 100cc. This prompted a spate of new entries into the
industry (Table 1) the majority of which entered the motor cycle segment, bringing with them
new technology that resulted in more efficient production processes and products. The variety in
products available also improved after broad banding was allowed in the industry in 1985 as a
part of NEP. This, coupled with the announcement of the MES of production for the two-wheeler
industry, gave firms the flexibility to choose an optimal product and capacity mix which could
better incorporate market demand into their production strategy and there by improve their
capacity utilization and efficiency. These reforms had two major effects on the industry. First
licensed capacities went up t 1.1 million units per annum overshooting the 0.675 million units
per annum target set in the sixth plan. Second, several existing but weaker players died out
giving were to new entrants and superior products.
D) 1991-1999
The reforms that began in the late seventies underwent their most significant change in 1991
through the liberalization of the economy. The two-wheeler industry was completely
11

deregulated. In the area of trade, several reforms were introduced with the goal making Indian
exports competitive. The two wheeler industry in the nineties was characterized by
An increase in the number of brands available in the market which caused firms to
complete on the basis of product features.
Increase in sales volumes in the motorcycles segment via the scooter segment
reversing the traditional trend.
The period between 1998-201 is considered to be significant in the history of Indian two
wheeler industries, as it saw and end of at least three alliances. First to go was that between
Kinetic and Honda. In November 1998, after protracted negotiations, in which Honda tried to
take over completely, and the firodias refused to surrender, Honda sold its shares to the Kinetic
Group. In 2000, Yamaha and escorts parted ways with the Nandas-controlled escort group
selling shares to the Japanese manufacturer. During this period, the TVS group and Suzuki
Motorcycle parted ways.
AWARDS & RECOGNITIONS
Year
2011
Two wheeler manufacturer of the year award by bike India magazine. Adjudged the
Bike manufacturer of the year at the economic times
Most recommended two wheeler brand of the year by CNBC Awaaz Consumer
awards.
Ranked no 1 brand in the Auto (two wheelers) category in the Brand equity MOST
TRUSTED BRAND 2011 Survey
2010
Company of the year awarded by Economic times awards for corporate excellence
2008-09.
12

CNBC TV 18 overdrive awards 2010 Hall of Fame to splendor.
2009
Two wheeler manufacturer of the year by NDTV profit car & bike awards 2009 and
passion pro adjudged as CNB viewers Choice Two wheeler.
NDTV Profit business leadership Awards 2009 two wheeler category.
2008
Top gear design awards 2008- Hunk bike of the year award
NDTV Profit business leadership Awards 2008 two wheeler category.
2007
Overall BIKE OF THE YEAR- CBZ X-treme
BIKE TECHNOLOGY OF THE YEAR- Glamour PGM FI.
2006
Adjudged 7
th
top Indian company by Wall Street Journal Asia (Top Indian two Wheeler
Company).
No.1 in automobile industry by its TNS corporate Social Responsibility Award.
2005
Awaaz Consumer Awards 2005-Indias most preferred two-wheeler brand by CNBC in
the Automobiles category.
ICWAI National Award for Excellence in cost Management 2004 in the private sector
category by ICWAI
10
th
Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for
the period 1991-2005.
13

2004
Winner of the review 200- Asia companies award (3rd Rank amongst the top 10 Indian
Companies).
Adjudged as the Best Value creator- Large size companies 2003-04 by the outlook
money.
Corporate excellence award 2004 by Indian Institute of Materials Management.
ICSI National Award for excellence in Corporate Governance 2004 by the institute of
Company Secretaries of India.
2003
Winner of the Review 200-Asias Leading Companies Award (3
rd
Rank amongst the top
10 Indian companies).
Most Respected Company in Automobile sector by Business world.
Bike maker of the Year by Overdrive Magazine.
1999
National Productivity Award for the Best Productivity Award in the Category of
Automobile & Tractor presented by Vice president of India.
1995
The analyst Award 1995 presented to Hero Honda ltd. On Being ranked 9
th
amongst the
most investor rewarding companies in India.
1991
Economic Times Harvard Business School Award for Corporate Performance to Hero
Honda Ltd.,
14

PROFILE OF THE DEALER
Sri Varalakshmi motors pvt.ltd.is one of the biggest hero Honda showroom in
the vizianagaram district. It is existed head quarters (vizianagaram) and the heart of the
city. It has been established in 2005 28
th
Aug as hero authorized dealer Mr. Rama venkata
reddy is the managing director of the company.
Sri Varalakshmi motors pvt.ltd. Is selling around 1000 vehicles per year and
around 50 employees are working in the company. Marketing and sales department has
one marketing manager, 2 marketing executives and 5 members of sales team.
Sri Varalakshmi motors pvt.ltd. Has a huge automates Work shop for servicing of
the vehicles. Daily around 50 vehicles and services and repaired in the servicing centre.
Workshop has one service manager, Technical supervisor and skilled mechanics.
Sri Varalakshmi motors pvt.ltd. Has linked with HDFC, ICICI To finance the
customers who wish to buy the vehicles in Finance. Monthly the company maintenance
300 vehicles as opening stock and sell 250 vehicles. The company authorities invested 2
cores to shape the company.
CONSUMER FACILITIES AT SERVICING CENTER
1. Automated workshop
2. Quick service
3. Breakdown servicing
4. Lounge for customers
5. Phone
6. Restroom
7. Free replacement and split pin and tube cap
15

8. TV with cable
9. RTA approved pollution checkup
10. Free drop facilities
Services offered
The service offered to the customers in the Sri Varalakshmi motors pvt.ltd.
1. 3 free services and paid services after sale of motorcycle
2. Free checkup campaign
3. Finance through banks
4. Demonstrations of new products
5. Acceptance of Warranty from claim.
Products available at Sri Varalakshmi motors pvt.ltd.
Sri Varalakshmi motors pvt.ltd. Franchise of Hero Honda Company. Herohonda
Company manufactures various types of motorcycles.
They are
1. Hero Honda ambition
2. Herohonda cbz-xtreme
3. Herohonda cd deluxe
4. Herohonda cd dawn
5. Herohonda glamour
6. Herohonda glamour 125 PGM fi
16

7. Herohonda hunk 150
8. Herohonda Karizma
9. Herohonda Karizma ZMR
10. Herohonda passion plus
11. Herohonda pleasure
12. Herohonda passion pro
13. Herohonda splendor NXG
14. Herohonda Splendor plus
15. Herohonda Super splendor 125
16. Hero impulse
17. Hero Maestro
18. Hero Ignitor
Employers in Sri Varalakshmi motors pvt.ltd
Sri Varalakshmi motors pvt.ltd. Headed by managing director. It has various
departments- Accounts department, Sales department, Spares department and workshops.
Total employees in Sri Varalakshmi motors are around 65 members in various
departments.
SALES:
Sales of the Sri Varalakshmi motors are higher than any other two-wheeler
company in vizianagaram.

17

YEAR NO.OF UNITS
2005-2006 2223
2006-2007 3938
2007-2008 4149
2008-2009 4983
2009-2010 5185
2010-2011 5608
2011-2012 5235
In its workshop, daily 70 to 80 customers are servicing their vehicles. The workshops
per day Income is about Rs. 15000 to Rs. 35000.
COMPANY PROFILE OF SRI VARA LAKSHMI MOTORS LTD
Brijmohan Lall munjal-the king of the road, the venerated patriarch and visionary of the
hero group, is a first generation entrepreneur who started very small and through sheer hard work
and perseverance has today made his two-wheeler venture the worlds no.1 two wheeler
company. The story of the indomitable entrepreneur, one of the brightest stories of Indian
entrepreneurship began 71 years ago when a six-years old boy quietly walked into a newly
opened gurkul (Indian value based school) near in his home in kamalia (now in Pakistan)
determine to gain admission. Impressed by his conviction, the gurukul granted him admission
instantly. Thus began an extraordinary saga of entrepreneurial achievement. Today, we know
that boy has brijmohan Lall munjal, the much-venerated patriarch of the hero group, one of the
largest groups in the corporate company. Brijmohan Lalls inspiration to enter the two wheeler
world came from a desire to provide the cheapest from of transport for the poorest of the poor.
Post-partition, Brijmohan Lall munjal and his brothers relocated to Ludhiana. They had to begin
from scratch. They set up as manufacture of the bicycle components. From then on, there was no
18

looking back. In typically modest manner, brijmohan Lall munjal accords a greatest deal of the
credit for his success to his family and his team.
BOARD OF DIRECTORS
Chairman Brijmohan Lall munjal
Joint managing director Toshiaki Nakagawa
Managing director & CEO Pawan munjal
Technical director Sumihisa fukuda
Non-Executive Director Pradeep dinda
Non-Executive and Independent director Prakesh malik
Non-Executive and Independent director Dr.pritam Singh
Non-Executive director Om prakesh munjal
Non-Executive director Masahiro
Non-Executive director Sunilkanth munjal
Non-Executive director Takashi Nagai
Non-Executive and Independent director Ms.shobhana Bhatia
Non-Executive and Independent director Sunil Bharti mittal
Non-Executive and Independent director Meleevtil Damodaran
ALTERNATE DIRECTOR Satoshi matuzawa
COMPLANCE OFFICER Sr. G. M. llam c. kamboj


19

OTHER DIRECTORS:
Non-Executive and Independent director Amar Nath Maria
Non-Executive and Independent director Sunil Bharti Mittal
Whole-time director Yutaka kudo
Non-Executive and Independent director Marinade Nath vohra
COMMITTEE OF DIRECTORS:
Chairman Pradeep dinodia
Member Gen. (Retd.) Ved prakesh malik
Member Dr. Pritam Sing
REMUNERATION COMMITTEE:
Chairman Gen. (retd.) ved prakesh
Member Pradeep dinodia
SENIOR MANAGEMENT TEAM:
Sr.vice president & CFO Ravi sud
Sr.vice president-sales,Marketing and customer care Anil dua
Plants head-operative and supply chain Vikram s.kasbekar
Vice president-HRM, corporate Dr.Anand s. pande
Vice president-information systems Vijay sethi
INITIATIVES
An environment and socially, aware company at hero Honda, our goal is not only to sell
you a bike, but also to help every step in making your world better place in live in. besides it will
provide a high quality services to all its customers. Hero Honda takes a stand as a socially
20

responsible enterprise respectful of its environment and respectful of t6he important issues. Hero
Honda has been strongly committed not only to environment conversion programmers but also
expresses the increasingly inseparable balances between the economic concerns and the
environment and social issues faced but rather must mankind.
We must do something for the community from whose land we generate our
wealth-a famous quote by Mr.Brijmohan Lall Munjal, CMD.
WEBSITE www.heromotocorp.in

HERO COMPANY PROFILE
TYPE Public company
Traded as BSE:500182
NSE: HEROMOTOCORP
BSE SENSEX Constituent
INDUSTRY Automotive
FOUNDED 19 January 1984(Gurgoan)
FOUNDERS Brijmohanlall munjal
HEADQUARTERS New Delhi, India
KEY PEOPLE Brijmohanlall munjal
Pawanmunjal(MD&CEO)
PRODUCTS Motorcycles, scooters, three-Wheeled vehicles
REVENUE 19669.290 CRORE
PARENT HERO GROUP
21

ORGANISATIONAL CHART





Managing
Director
Finance
manager
manager
of services
Service
saupervisor
Technicians
Floor
supervisor
Technicians
manager of
spares sales
Executive
of outdoor
manager of
wholesales
Executive
of showroom
General
manager
22

PROFILE OF THE DEALER
Sri Varalakshmi motors pvt.ltd.is one of the biggest hero Honda showroom in the
vizianagaram district. It is existed head quarters (vizianagaram) and the heart of the city. It has
been established in 2005 28
th
Aug as hero authorized dealer Mr. Rama venkata reddy is the
managing director of the company.
Sri Varalakshmi motors pvt.ltd. Is selling around 1000 vehicles per year and around 50
employees are working in the company. Marketing and sales department has one marketing
manager, 2 marketing executives and 5 members of sales team.
Sri Varalakshmi motors pvt.ltd. Has a huge automates Work shop for servicing of the
vehicles. Daily around 50 vehicles and services and repaired in the servicing centre. Workshop
has one service manager, Technical supervisor and skilled mechanics.
Sri Varalakshmi motors pvt.ltd. Has linked with HDFC, ICICI. To finance the
customers who wish to buy the vehicles in Finance. Monthly the company maintenance 300
vehicles as opening stock and sell 250 vehicles. The company authorities invested 2 crores to
shape the company.
CONSUMER FACILITIES AT SERVICING CENTER
1. Automated workshop
2. Quick service
3. Breakdown servicing
4. Lounge for customers
5. Phone
6. Restroom
7. Free replacement and split pin and tube cap
8. TV with cable
23

9. RTA approved pollution checkup
10. Free drop facilities
Services offered
The service offered to the customers in the Sri Varalakshmi motors pvt.ltd.
1. 3 free services and paid services after sale of motorcycle
2. Free checkup campaign
3. Finance through banks
4. Demonstrations of new products
5. Acceptance of Warranty from claim.
Products available at Sri Varalakshmi motors pvt.ltd.
Sri Varalakshmi motors pvt.ltd. Franchise of Herohonda Company. Herohonda Company
manufactures various types of motorcycles. These are
1. Hero Honda ambition
2. Herohonda cbx-xtreme
3. Herohonda cd deluxe
4. Herohonda cd dawn
5. Herohonda glamour
6. Herohonda glamour 125 PGM fi
7. Herohonda hunk 150
8. Herohonda Karizma
9. Herohonda Karizma ZMR
24

10. Herohonda passion plus
11. Herohonda pleasure
12. Herohonda passion pro
13. Herohonda splendor NXG
14. Herohonda Splendor plus
15. Herohonda Super splendor 125
16. Hero impulse
17. Hero Maestro
18. Hero Ignitor
Employers in Sri Varalakshmi motors pvt.ltd
Sri Varalakshmi motors pvt.ltd. Headed by managing director. It has various
departments- Accounts department, Sales department, Spares department and workshops. Total
employees in Sri Varalakshmi motors are around 65 members in various departments.
SALES Sales of the Sri Varalakshmi motors are higher than any other two-wheeler
company in vizianagaram.
YEAR NO.OF UNITS
2005-2006 2223
2006-2007 3938
2007-2008 4149
2008-2009 4983
2009-2010 5500
2010-2011 5000
25

INTRODUCTION TO MARKETING MIX
The 21st century has seen the advent of the new economy, thanks to the technology
innovation and development. To understand the new economy, it is important to understand in
brief characteristics and features of the old economy. Industrial revolution was the start point of
the old economy with focus on producing massive quantities of standardized products. This mass
product was important for cost reduction and satisfying large consumer base, as production
increased companies expanded into new markets across geographical areas. The old economy
had the organizational hierarchy where in top management gave out instructions which were
executed by the middle manager over the workers.
In contrast, the new economy has seen the buying power at all time thanks to the digital
revolution. Consumers have access to all types information for product and services.
Furthermore, standardization has been replaced by more customization with a dramatic increase
in terms of product offering. Purchase experience has also changed as well with the introduction
of online purchase, which can be done 24 7 with products getting delivered at office or home.
Companies have also taken advantage of information available and are designing more efficient
marketing programs across consumers as well as the distribution channel. Digital revolution has
increased speed of communication mobile, e-mail SMS, etc. This helps companies take faster
decisions and implement strategies more swiftly.
Marketing is art of developing, advertising and distributing goods and services to
consumer as well as business. However, marketing is not just limited to goods and services it is
extended to everything from places to ideas and in between. This brings forth many challenges
within which marketing people have to take strategy decisions. And answer to these challenges
depends on the market the company is catering to, for consumer market decision are with respect
to product, packaging and distribution channel. For business market, knowledge and awareness
of product is very essential for marketing people as businesses are on the lookout to maintain or
establish a credential in their respective market. For global market, marketing people have to
consider not only culture diversity but also be careful with respect to international trade laws,
trade agreement, and regulatory requirements of individual market. For non for profit
26

organization with limited budgets, importance is related to pricing of products, so companies
have to design and sell products accordingly.
Marketing philosophy employed by any given company has to be mix of organization
interest, consumer interest and societal interest. In production philosophy, companies focus is on
numbers, high production count, which reduces cost per unit and along with mass distribution.
This kind of concept is usually making sense in a developing market where there is the need of
product in large numbers. The product philosophy talks about consumers who are willing to pay
an extra premium for high quality and reliable performance, so companies focus on producing
well made products. The selling concept believes in pushing consumers into buying of products,
which under normal circumstance, they would be resistant. The marketing concept believes
consumer satisfaction, thereby developing and selling products keeping focus solely on customer
needs and wants. The customer philosophy believes in the creation of customized products,
where in products is design looking at historical transaction of consumers. The last philosophy is
the societal concept which believes in developing products, which not only generate consumer
satisfaction but also take into account well being of society or environment.
Digital revolution and 21st century have made companies fine tune the way they conduct
their business. One major trend observed is the need of stream lining processes and systems with
the focus on cost reduction through outsourcing. Another trend observed in companies is,
encouragement to entrepreneur style of work environment with glocal (global-local) approach.
At the same time, marketers of companies are looking forward to building long term relationship
with consumers. This relationship establishes platform understanding consumer needs and
preference. Marketers are looking at distribution channels as partners in business and not as the
customer. Companies and marketers are making decisions using various computers simulated
models.
Neil Borden in the year 1953 introduced the term Marketing mix, an extension of the work done
by one of his associates James Culliton in 1948.
Marketing Mix - A mixture of several ideas and plans followed by a marketing
representative to promote a particular product or brand is called marketing mix. Several
27

concepts and ideas combined together to formulate final strategies helpful in making a brand
popular amongst the masses form marketing mix.
Elements of Marketing Mix
The elements of marketing mix are often called the four Ps of marketing.
Product
Goods manufactured by organizations for the end-users are called products.
Products can be of two types - Tangible Product and Intangible Product (Services)
An individual can see, touch and feel tangible products as compared to intangible products.
A product in a market place is something which a seller sells to the buyers in exchange of
money.
Price
The money which a buyer pays for a product is called as price of the product. The price of a
product is indirectly proportional to its availability in the market. Lesser its availability, more
would be its price and vice a versa.
Retail stores which stock unique products (not available at any other store) quote a higher price
from the buyers.
Place
Place refers to the location where the products are available and can be sold or purchased.
Buyers can purchase products either from physical markets or from virtual markets. In a physical
market, buyers and sellers can physically meet and interact with each other whereas in a virtual
market buyers and sellers meet through internet.



28

Promotion
Promotion refers to the various strategies and ideas implemented by the marketers to make the
end - users aware of their brand. Promotion includes various techniques employed to promote
and make a brand popular amongst the masses.
Promotion can be through any of the following ways:
o Advertising
Print media, Television, radio are effective ways to entice customers and make them aware of the
brands existence.
Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic
areas, crossings, railway stations, bus stands attract the passing individuals towards a particular
brand.
Taglines also increase the recall value of the brand amongst the customers.
o Word of mouth
One satisfied customer brings ten more customers along with him whereas one dis-satisfied
customer takes away ten more customers. Thats the importance of word of mouth. Positive word
of mouth goes a long way in promoting brands amongst the customers.
Lately three more Ps have been added to the marketing mix. They are as follows:
People - The individuals involved in the sale and purchase of products or services come
under people.
Process - Process includes the various mechanisms and procedures which help the product to
finally reach its target market
Physical Evidence - With the help of physical evidence, a marketer tries to communicate the
USPs and benefits of a product to the end users

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Four Cs of Marketing Mix
Now a days, organizations treat their customers like kings. In the current scenario, the four Cs
has thus replaced the four Ps of marketing making it a more customer oriented model. Koichi
Shimizu in the year 1973 proposed a four Cs classification.
Commodity - (Replaces Products)
Cost - (Replaces Price) involves manufacturing cost, buying cost and selling cost
Channel - The various channels which help the product reach the target market.
Communication - (Replaces Promotion)
INTRODUCTION TO MARKETING MIX
Marketing identifies consumers needs and supplies various goods and services to satisfy those
needs most effectively. So the businessman needs to: (a) produce or manufacture the product
according to consumers need; (b) make available it at a price that the consumers find
reasonable; (c) supply the product to the consumers at different outlets they can conveniently
approach; and (d) inform the consumers about the product and its characteristics through the
media they have access to.
So the marketing manager concentrates on four major decision areas while planning the
Marketing activities, namely, (i) products, (ii) price, (iii) place (distribution) and (iv) promotion.
These 4 Ps are called as elements of marketing and together they constitute the marketing mix.
All these are inter-related because a decision in one area affects decisions in other areas. In this
lesson you will learn about the basic aspects relating to these 4Ps viz., product, price, place and
promotion.
OBJECTIVES
After studying this lesson, you will be able to :
explain the concept of marketing mix and its components;
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explain the meaning of product and its classification;
state the various factors affecting pricing decisions;
describe different methods of pricing;
state the meaning of channels of distribution;
identify the various channels of distribution;
state the factors affecting choice of a channel of distribution; and
explain the concepts of promotion and promotion mix.
CONCEPT AND COMPONENTS OF MARKETING MIX
Marketing involves a number of activities. T o begin with, an organization may decide on
its target group of customers to be served. Once the target group is decided, the product is to be
placed in the market by providing the appropriate product, price, distribution and promotional
efforts. These are to be combined or mixed in an appropriate proportion so as to achieve the
marketing goal. Such mix of product, price, distribution and promotional efforts is known as
Marketing Mix.
According to Philip Kotler Marketing Mix is the set of controllable variables that the
firm can use to influence the buyer s response. The controllable variables in this context refer
to the 4 P s [product, price, place (distribution) and promotion]. Each firm strives to build up
such a composition of 4P s, which can create highest level of consumer satisfaction and at the
same time meet its organisational objectives.
Thus, this mix is assembled keeping in mind the needs of target customers, and it varies
from one organisation to another depending upon its available resources and marketing
objectives.
Product:
Product refers to the goods and services offered by the organization. All these are
purchased because they satisfy one or more of our needs. We are paying not for the tangible
31

product but for the benefit it will provide. So, in simple words, product can be described as a
bundle of benefits which a marketer offers to the consumer for a price. Product can also take the
form of a service like an air travel, telecommunication, etc. Thus, the term product refers to
goods and services offered by the organisation for sale.
Price:
Price is the amount charged for a product or service. It is the second most important
element in the marketing mix. Fixing the price of the product is a tricky job. Many factors like
demand for a product, cost involved, consumer s ability to pay , prices charged by competitors
for similar products, government restrictions etc. have to be kept in mind while fixing the price.
In fact, pricing is a very crucial decision area as it has its effect on demand for the product and
also on the profitability of the firm.
Place:
Goods are produced to be sold to the consumers. They must be made available to the
consumers at a place where they can conveniently make purchase. So, it is necessary that the
product is available at shops in your town. This involves a chain of individuals and institutions
like distributors, wholesalers and retailers who constitute firm s distribution network (also called
a channel of distribution). The organization has to decide whether to sell directly to the retailer or
through the distributors/wholesaler etc. It can even plan to sell it directly to consumers. The
choice is guided by a host of factors about which you will learn later in this chapter .
Promotion:
If the product is manufactured keeping the consumer needs in mind, is rightly priced
and made available at outlets convenient to them but the consumer is not made aware about its
price, features, availability etc, its marketing effort may not be successful. Therefore promotion
is an important ingredient of marketing mix as it refers to a process of informing, persuading and
influencing a consumer to make choice of the product to be bought. Promotion is done through
means of personal selling, advertising, publicity and sales promotion. It is done mainly with a
view to provide information to prospective consumers about the availability , characteristics and
uses of a product. It arouses potential consumers interest in the product, compare it with
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competitors product and make his choice. The proliferation of print and electronic media has
immensely helped the process of promotion.
CONCEPT OF PRODUCT AND ITS CLASSIFICA TION
As stated earlier, product refers to the goods and services offered by the organization for sale.
Here the marketers have to recognize that consumers are not simply interested in the physical
features of a product but a set of tangible and intangible attributes that satisfy their wants. For
example, when a consumer buys a washing machine he is not buying simply a machine but a
gadget that helps him in washing clothes. It also needs to be noted that the term product refers to
anything that can be offered to a market for attention, acquisition, or use.
Thus, the term product is defined as anything that can be offered to a market to satisfy a want.
It normally includes physical objects and services. In a broader sense, however, it not only
includes physical objects and services but also the supporting services like brand name,
packaging accessories, installation, after sales service etc.
Product
Acc to William J. S tanton
Product is a set of tangible and intangible attributes including packaging, colour ,price,
manufacturer s prestige, retailer s prestige and manufacturer s and retailerservices which
buyer may accept as offering satisfaction of wants and services.
Jerome McCarthy
A product is more than just a physical product with its related functional and aesthetic features.
It includes accessories, installation, instructions on use, the package, perhaps a brand name,
which fulfills some psychological needs and the assurances that service facilities will be
available to meet the customer needs after the purchase.



33

PRODUCT CLASSIFICATION
Product can be broadly classified on the basis of (1) use, (2) durability, and (3) tangibility.
Let us have a brief idea about the various categories and their exact nature under each head,
noting at the same time that in marketing the terms product and goods are often used
interchangeably .
1. Based on use, the product can be classified as:
(a) Consumer Goods; and
(b) Industrial Goods.
(a) Consumer goods: Goods meant for personal consumption by the households or ultimate
consumers are called consumer goods. This includes items like toiletries, groceries, clothes etc.
Based on consumers buying behavior the consumer goods can be further classified as :
(i) Convenience Goods;
(ii) Shopping Goods; and
(iii) Speciality Goods.
(i) Convenience Goods: Do you remember, the last time when did you buy a packet of butter or
a soft drink or a grocery item? Perhaps you dont remember, or you will say last week or
yesterday. Reason is, these goods belong to the categories of convenience goods which are
bought frequently without much planning or shopping effort and are also consumed quickly .
Buying decision in case of these goods does not involve much pre-planning. Such goods are
usually sold at convenient retail outlets.
(ii) Shopping Goods: These are goods which are purchased less frequently and are used very
slowly like clothes, shoes, household appliances. In case of these goods consumers make choice
of a product considering its suitability, price, style, quality and products of competitors and
substitutes, if any. In other words, the consumers usually spend a considerable amount of time
and effort to finalize their purchase decision as they lack complete information prior to their
34

shopping trip. It may be noted that shopping goods involve much more expenses than
convenience goods.
(iii) Specialty Goods: Because of some special characteristics of certain categories of goods
people generally put special efforts to buy them. They are ready to buy these goods at prices at
which they are offered and also put in extra time to locate the seller to make the purchase. The
nearest car dealer may be ten kilometers away but the buyer will go there to inspect and purchase
it. In fact, prior to making a trip to buy the product he/she will collect complete information
about the various brands. Examples of specialty goods are cameras, TV sets, new automobiles
etc.
(b) Industrial Goods: Goods meant for consumption or use as inputs in production of other
products or provisions of some service are termed as industrial goods. These are meant for non-
personal and commercial use and include (i) raw materials, (ii) machinery , (iii) components, and
(iv) operating supplies (such as lubricants, stationery etc). The buyers of industrial goods are
supposed to be knowledgeable, cost conscious and rational in their purchase and therefore, the
marketers follow different pricing, distribution and promotional strategies for their sale.
It may be noted that the same product may be classified as consumer goods as well as industrial
goods depending upon its end use. Take for example the case of coconut oil. When it is used as
hairoil or cooking oil, it is treated as consumer goods and when used for manufacturing a bath
soap it is termed as industrial goods. However, the way these products are marketed to these two
groups are very different because purchase by industrial buyer is usually large in quantity and
bought either directly from the manufacturer or the local distributor.
2. Based on Durability, the products can be classified as:
(a) Durable Goods; and
(b) Non-durable Goods.
(a) Durable Goods:
Durable goods are products which are used for a long period i.e., for months or years together .
Examples of such goods are refrigerator , car , washing machine etc. Such goods generally
35

require more of personal selling efforts and have high profit mar gins. In case of these goods,
sellers reputation and pre-sale and after-sale service are important determinants of purchase
decision.
(b) Non-durable Goods:
Non-durable goods are products that are normally consumed in one go or last for a few uses.
Examples of such products are soap, salt, pickles, sauce etc. These items are consumed quickly
and we purchase these goods more often. Such items are generally made available by the
producer through large number of convenient retail outlets. Profit margins on such items are
usually kept low and heavy advertising is done to attract people towards their trial and use.
3. Based on tangibility, the products can be classified as:
(a) tangible Goods; and
(b) Intangible Goods.
(a) Tangible Goods:
Most goods, whether these are consumer goods or industrial goods and whether these are durable
or non-durable, fall in this category as they have a physical form that can be touched and seen.
Thus, all items like groceries, cars, raw-materials, machinery etc. fall in the category of tangible
goods.
(b) Intangible Goods:
Intangible goods refer to services provided to the individual consumers or to the organisational
buyers (industrial, commercial, institutional, government etc.). Services are essentially intangible
activities which provide want or need satisfaction. Medical treatment, postal, banking and
insurance services etc., all fall in this category.
PRICING AND FACTORS AFFECTING PRICING DECISIONS
As stated earlier price is the consideration in terms of money paid by consumers for the
bundle of benefits he/she derives by using the product/ service. In simple terms, it is the
exchange value of goods and services in terms of money. Pricing (determination of price to be
36

charged) is another important element of marketing mix and it plays a crucial role in the success
of a product in the market. If the price fixed is high, it is likely to have an adverse effect on the
sales volume. If, on the other hand, it is too low, it will adversely affect the profitability. Hence,
it has to be fixed after taking various aspects into consideration.
The factors usually taken into account while determining the price of a product can be
broadly described as follows:
(a) Cost: No business can survive unless it covers its cost of production and distribution. In large
number of products, the retail prices are determined by adding a reasonable profit margin to the
cost. Higher the cost, higher is likely to be the price, lower the cost lower the price.
(b) Demand: Demand also affects the price in a big way. When there is limited supply of a
product and the demand is high, people buy even if high prices are charged by the producer . But
how high the price would be is dependent upon prospective buyers capacity and willingness to
pay and their preference for the product. In this context, price elasticity, i.e. responsiveness of
demand to changes in price should also be kept in view.
(c) Competition: The price charged by the competitor for similar product is an important
determinant of price. Marketer would not like to charge a price higher than the competitor for
fear of losing customers. Also, he may avoid charging a price lower than the competitor.
Because it may result in price war which we have recently seen in the case of soft drinks,
washing powder, mobile phone etc.
(d) Marketing Objectives: A firm may have different marketing objectives such as
maximization of profit, maximization of sales, bigger market share, survival in the market and so
on. The prices have to be determined accordingly. For example, if the objective is to maximize
sales or have a bigger market share, a low price will be fixed.
(e) Government Regulation: Prices of some essential products are regulated by the government
under the Essential Commodities Act. For example, prior to liberalization of the economy ,
cement and steel prices were decided by the government. Hence, it is essential that the existing
statutory limits, if any, are also kept in view while determining the prices of products by the
producers.
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METHODS OF PRICE FIXATION
Methods of fixing the price can be broadly divided into the following categories.
1. Cost based pricing
2. Competition based pricing
3. Demand based pricing
4. Objective based pricing
1. Cost Based Pricing
Under this method, price of the product is fixed by adding the amount of desired profit margin to
the cost of the product. If a particular soap costs the marketer Rs. 8 and he desires a profit of
25%, the price of the soap is fixed at Rs 8 + (8x25/100) =Rs. 10.
While calculating the price in this way, all costs (variable as well as fixed) incurred in
manufacturing the product are taken into consideration.
2. Competition Based Pricing
In case of products where market is highly competitive and there is negligible difference in
quality of competing brands, price is usually fixed closer to the price of the competing brands. It
is called young rate pricing and is a very convenient method because the marketers do not have
to worry much about demand and cost and effect the change as per the changes by the industry
leaders.
3. Demand Based Pricing
At times, prices are determined by the demand for the product. Under this method, without
paying much attention to cost and competitors prices, the marketers try to ascertain the demand
for the product. If the demand is high they decide to take advantage and fix a high price. If the
demand is low, they fix low prices for their product. At times they resort to differential prices
and charge different prices from different groups of customers depending upon their perceived
values and capacity to pay.
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4. Objective Based Pricing
This method is applicable to introduction of new (innovative) products. If, at the introductory
stage of the products, the organization wishes to penetrate the market i.e., to capture large parts
of the market and discourage the prospective competitors to enter into the fray, it fixes a low
price. Alternatively , the organization may decide to skim the market i.e., to earn high profit by
taking advantage of a group of customers who give more importance to their status or distinction
and are willing to pay even a higher price for it. In such a situation they fix quite high price at the
introductory stage of their product and market it to only those customers who can afford it.
CHANNELS OFDISTRIBUTION
You are aware that while a manufacturer of a product is located at one place, its consumers are
located at innumerable places spread all over the country or the world. The manufacturer has to
ensure the availability of his goods to the consumers at convenient points for their purchase. He
may do so directly or, as stated earlier, through a chain of middlemen like distributors,
wholesalers and retailers. The path or route adopted by him for the purpose is known as channel
of distribution. A channel of distribution thus, refers to the pathway used by the manufacturer
for transfer of the ownership of goods and its physical transfer to the consumers and the
user/buyers (industrial buyers).
Stanton has also defined it as A distribution channel consists of the set of people and firms
involved in the transfer of title to a product as the product moves from producer to ultimate
consumer or business user. Basically it refers to the vital links connecting the manufacturers
and producers and the ultimate consumers/users. It includes both the producer and the end user
and also the middlemen/agents engaged in the process of transfer of title of goods.
Primarily a channel of distribution performs the following functions:
(a) It helps in establishing a regular contact with the customers and provides them the necessary
information relating to the goods.
(b) It provides the facility for inspection of goods by the consumers at convenient points to make
their choice.
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(c) It facilitates the transfer of ownership as well as the delivery of goods.
(d) It helps in financing by giving credit facility.
(e) It assists the provision of after sales services, if necessary.
(f) It assumes all risks connected with the carrying out the distribution function.
TYPES OF CHANNELS OFDISTRIBUT ION
Generally we do not buy goods directly from the producers. The producers/manufacturers
usually use services of one or more middlemen to supply their goods to the consumers. But
sometimes, they do have direct contact with the customers with no middlemen in between them.
This is true more for industrial goods where the customers are highly knowledgeable and their
individual purchases are large. The various channels used for distribution of consumer goods can
be described as follows:
1. Zero stage channel of distribution
Manufacturer__________> consumer
Zero stage distribution channel exists where there is direct sale of goods by the producer to the
consumer . This direct contact with the consumer can be made through door-to-door salesmen,
own retail outlets or even through direct mail. Also in case of perishable products and certain
technical household products, door-to-door sale is an easier way of convincing consumer to
make a purchase. Eureka Forbes, for example, sells its water purifiers directly through their own
sales staff.
2. One stage channel of distribution.
Manufacturer- retailer- consumer
In this case, there is one middleman i.e., the retailer. The manufacturers sell their goods to
retailers who in turn sell it to the consumers. This type of distribution channel is preferred by
manufacturers of consumer durables like refrigerator, air conditioner, washing machine, etc.
where individual purchase involves large amount. It is also used for distribution through large
scale retailers such as departmental stores (Big Bazaar, Sponsors) and super markets.
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3. Two stage channel of distribution
Manufacturer- wholesaler- retailer- consumer
This is the most commonly used channel of distribution for the sale of consumer goods. In this
case, there are two middlemen used, namely, wholesaler and retailer. This is applicable to
products where markets are spread over a large area, value of individual purchase is small and
the frequency of purchase is high.
4. Three stage channel of distribution
Manufacturer- agent- wholesaler- retailer- consumer
When the number of wholesalers used is large and they are scattered throughout the country , the
manufacturers often use the services of mercantile agents who act as a link between the producer
and the wholesaler . They are also known as distributors.
FACTORS AFFECTING THE CHOICE OF DISTRIBUTION CHANNEL
Choice of an appropriate distribution channel is very important as the pricing as well as
promotion strategy are dependent upon the distribution channel selected. Not only that, the route
which the product follows in its journey from the manufacturer to the consumer also involves
certain costs. This in turn, affects not only the price of the product but also the profits. Choice of
inappropriate channels of distribution may result in lesser profits for the manufacturer and higher
price from the consumer. Hence, the manufacturer has to be careful while finalizing the channel
of distribution to be used. He should pay attention to the following factors while making his
choice.
(a) Nature of Market: There are many aspects of market which determine the choice of channel
of distribution. Say for example, where the number of buyers is limited, they are concentrated at
few locations and their individual purchases are large as is the case with industrial buyers, direct
sale may be the most preferred choice. But in case where number of buyers is large with small
individual purchase and they are scattered, then need may arise for use of middlemen.
(b) Nature of Product: Nature of the product considerably affects the choice of channel of
distribution. In case the product is of technical nature involving a good amount of pre-sale and
41

after sale services, the sale is generally done through retailers without involving the wholesalers.
But in most of the consumer goods having small value, bought frequently in small quantities, a
long channel involving agents, wholesalers and retailers is used as the goods need to be stored at
convenient locations. Items like toiletries, groceries, etc. fall in this category . As against this in
case of items like industrial machinery, having large value and involving specialized technical
service and long negotiation period, direct sale is preferred.
(c) Nature of the Company: A firm having enough financial resources can afford to its own a
distribution force and retail outlet, both. But most business firms prefer not to create their own
distribution channel and concentrate on manufacturing. The firms who wish to control the
distribution network prefer a shorter channel.
(d) Middlemen Consideration: If right kind of middlemen having the necessary experience,
contacts, financial strength and integrity are available, their use is preferred as they can ensure
success of newly introduced products. Cost factors also have to be kept in view as all middlemen
add their own margin of profit to the price of the products. But from experience it is learnt that
where the volume of sales are adequate, the use of middlemen is often found economical and less
cumbersome as against direct sale.
PROMOTION
Promotion refers to the process of informing and persuading the consumers to buy certain
product. By using this process, the marketers convey persuasive message and information to its
potential customers. The main objective of promotion is to seek buyers attention towards the
product with a view to:
arouse his interest in the product;
inform him about its availability; and
inform him as to how is it different from others.
It is thus a persuasive communication and also serves as a reminder. A firm uses different tools
for its promotional activities which are as follows:
Advertising
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Publicity
Personal selling
Sales promotion
These are also termed as four elements of a promotion mix. Let us have a brief idea about these
promotion tools.
1. Advertising: Advertising is the most commonly used tool for informing the present and
prospective consumers about the product, its quality, features, availability, etc. It is a paid form
of non-personal communication through different media about a product, idea, a service or an
organization by an identified sponsor. It can be done through print media like newspaper,
magazines, billboards, electronic media like radio, television, etc. It is a very flexible and
comparatively low cost tool of promotion.
2. Publicity: This is a non-paid process of generating wide range of communication to
contribute a favorable attitude towards the product and the organization. You may have seen
articles in newspapers about an organization, its products and policies. The other tools of
publicity are press conference, publication and news in the electronic media etc. It is published
or broadcasted without charging any money from the firm. Marketers often spend a lot of time
and effort in getting news items placed in the media for creation of a favorable image of the
company and its products.
3. Personal selling: Y ou must have come across representatives of different companies
knocking at your door and persuading you to buy their product. It is a direct presentation of the
product to the consumers or prospective buyers. It refers to the use of salespersons to persuade
the buyers to act favorably and buy the product. It is most effective promotional tool in case of
industrial goods.
4. Sales promotion: This refers to short-term and temporary incentives to purchase or induce
trials of new goods. The tool includes contests, games, gifts, trade shows, discounts, etc. Sales
promotional activities are often carried out at retail levels.

43

AN ANALYSIS OF MARKETING MIX STRATEGIES WITH REFERENCE TO -
SRI VARA LAKSHMI MOTORS PRIVATE LTD.
Sri Varalakshmi motors pvt.ltd.is one of the biggest hero Honda showroom in the vizianagaram
district. It is existed head quarters (vizianagaram) and the heart of the city. It has been
established in 2005 28
th
Aug as hero authorized dealer Mr. Rama venkata reddy is the managing
director of the company.
Sri Varalakshmi motors pvt.ltd. Is selling around 1000 vehicles per year and around 50
employees are working in the company. Marketing and sales department has one marketing
manager, 2 marketing executives and 5 members of sales team.
Sri Varalakshmi motors pvt.ltd. Has a huge automates Work shop for servicing of the
vehicles. Daily around 50 vehicles and services and repaired in the servicing centre. Workshop
has one service manager, Technical supervisor and skilled mechanics.
Sri Varalakshmi motors pvt.ltd. has linked with HDFC, ICICI. To finance the customers
who wish to buy the vehicles in Finance. Monthly the company maintenance 300 vehicles as
opening stock and sell 250 vehicles. The company authorities invested 2 crores to shape the
company.
CONCEPT OF MARKETING MIX
According to Philip Kotler Marketing Mix is the set of controllable variables that the
firm can use to influence the buyers response. The controllable variables in this context refer
to the 4 Ps [product, price, place (distribution) and promotion]. Each firm strives to build up
such a composition of 4Ps, which can create highest level of consumer satisfaction and at the
same time meet its organisational objectives.
Thus, this mix is assembled keeping in mind the needs of target customers, and it varies
from one organisation to another depending upon its available resources and marketing
objectives.


44

PRODUCT
INTRODUCTION
There are two essentials in marketing i.e. product (goods & services) & marketing
(buyers & sellers). Without these two essentials there can be no marketing. Markets & products
are the foundations on which the whole study of marketing is based. The transfer of ownership
cannot take place, unless there are both a market & a product.
Product Strategies of Hero Moto Corp
Hero shifted its focus from catering to the fuel efficient conscious consumer to try and
occupy other segments of the motorbike market and therefore the new product launches from
hero Moto corp. in the last three year have been in this direction. The company has also
upgraded some of its bikes to stay in contention and to meet euro emission norms. The new
underlining theme for the company one for everyone has led to the launching of new products
with the launch of new motorbikes and various other motorbikes in the pipeline, hero moto
corp.s strategy is to get into these segments of the motorcycle market where they have not made
in roads earlier.
Street Smart: Hero Moto corp. introduced its street smart in 1997. The company who were
more inclined towards the scooters and who thought that the scooters were safer than the
motorcycles, thus hero Moto corp. decided to launch the street smart. The bike was built in such
a way that it resembled more like a scooters, than a motorcycle, but actually it is a motorbike. I.e.
it is a hybrid

Product Description (Hero Moto Corp Ltd.)
Hero Moto Corp Has Launched The Following Motorbikes In The Indian Market.
Hero Moto Corp Cd 100
Hero Moto Corp Cd 100 Ss
Hero Sleek
Hero Moto Corp Splendor
45

Hero Moto Corp Street Smart
Hero Moto Corp Cbz
Hero Moto Corp Joy
Hero Moto Corp Passion
Hero Moto Corp Ambition
Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some
examples of the product decisions to be made:
1. Brand name
2. Functionality
3. Styling
4. Quality
5. Safety
6. Packaging
7. Repairs and Support
8. Warranty
9. Accessories and services
PRICE
The amount as of money or goods, asked for or given in exchange for something
else. T h e c o s t a t wh i c h s o me t h i n g i s o b t a i n e d : b e l i e v e s that the price of
success is hard work. a reward offered for the capture or killing of a person: a felon with a price
on his head. a free system could not flourish without price competition. Price is the universal
index of value. it is the best measure of demand. Price serves to bring the supply of goods and
services produced into equilibrium with the quantity demanded. In a business firm various
marketing decisions relating to pricing of products are the most significant because they from the
very basis for survival and growth of the firm.

46

PRICING STRATEGIES OF HERO MOTO CORP
The company has a policy to price its product very competitively. In todays world,one
cannot has a skimming pricing says Mr. Tapan, marketing manager, Hero Moto Corp.
Necessarily the pricing policy is completely a blend of two strategies i.e. Penetration and
Skimming. It has been the companys policy to provide the customers with value for money-give
more for less. We are the only company in the two wheeler segment that is in the process of
passing on the whole benefit of cost advantage achieved as a result of the increased localization
levels of up to 60% to the customers.
We are in the process of keeping our product increasing popular and affordable. The
company keeps telling its customers to think about Quality rather than price. Further if one talks
about the changes in the price in the last three years, the prices have never been changed except
the budgets except once in APRIL 2011,when the company started off with their celebration
offer, and thus decided to sanctioned a discount and curtail on every Model Rs 1001\-. The
company is surely in a business of delivering quality rather than price. The company gives
importance to the quality rather than cheap products.
Well Hero Moto Corp has bikes at different price point but there is one common thing
that is they are priced at a premium of INR 2000- 3000 from the competitors and it seems their
strategy is working fine with the target customers as it is the largest seller of bikes in the Indian
market with a market share of 48 % .Customers are ready to shell out the extra money because
they believe and its fact that the fuel efficiency of the bikes is much better than its competitors.
The different price points for Hero Motors Limited are :
NAME PRICE
Dawn ------------------- 32,000
Splendor --------------- 41,000
Passion ---------------- 44,000
Cbz--------------------- 52,000-60,000
Thus we find that HML has bikes for every one for entry level customers they have dawn which
is a no frill attached product whose emphasis is on mileage with performance .And for customers
who like to have bike which is good at performance and with descent looks they have Splendor
which is their fastest selling bike and account for half of the total sales. Customers who are
47

looking for style with performance can go for Passion which is a huge success among the urban
class as it is priced little bit higher than splendor and the looks of the bike are astounding.
For customers who want style and power they have CBZ which is targeted towards the
premium segment and it was a runaway success initially but is not a hot seller now due to some
problems. Hero Moto Corp is planning to introduce few more models in years time in order to
make their portfolio of products more versatile. They are trying to introduce new models and
they are trying to introduce models at the premium segment as it has high margins and the
company feels that its the segment which is will grow in the near future as the income of people
will increase with the change of life styles .HML also intend to introduce few models which are
economical in nature as they this segment provides the volumes to the company. Hero Moto
Corp still wants to charge a price of premium as its brand enjoys a high level of respectability
and reliability among the target customers as their products have already proved their mettle in
the market and enjoy high level of brand equity among the target customers.
Hero Moto Corp has an advantage of large no of dealers and also economies of scale
which help them to absorb the costs to a great extent.
Price Decisions
1. Pricing strategy (skimming, penetration, etc.)
2. Suggested retail price
3. Volume discounts and wholesale pricing
4. Cash and early payment discounts
5. Seasonal pricing
6. Bundling
7. Price flexibility
8. Price discrimination

PRICE OF THE PRODUCTS AN OVERVIEW:

Hero Motocorp Karizma ZMR Price: Rs. 1, 03,000
Hero Motocorp HF CD Dawn Price: Rs. 38,000
Hero Motocorp Pleasure Price: Rs. 42,500
48

Hero Motocorp Splendor NXG Price: Rs. 43,000
Hero Motocorp HF Deluxe Price: Rs. 44,000
Hero Motocorp Splendor plus Price: Rs. 44,500
Hero Motocorp Passion plus Price: Rs. 45,000
Hero Motocorp Splendor Pro Price : Rs. 45000-48100
Hero Motocorp Passion Pro Price: Rs. 49,000
Hero Motocorp Maestro Price: Rs. 50,000
Hero Motocorp Passion xPro Price: Rs. 51,500
Hero Motocorp Super Splendor Price: Rs. 51800
Hero Motocorp Glamour Price: Rs. 54,500
Hero Motocorp Ignitor Price: Rs. 57,200
Hero Motocorp Achiever Price: Rs. 58,000
Hero Motocorp Impulse Price: Rs. 69,500
Hero Motocorp Hunk Price: Rs. 71,200
Hero Motocorp CBZ Xtreme Price: Rs. 72,300
Hero Motocorp Karizma R Price: Rs. 82,100
PLACE
Place stands for various activities the company undertake such as channels, coverage,
location, inventory and transport, to make the product accessible and available to target
consumers. Thus, a firm must identify, recruit, and link various middle men under and marketing
49

facilitators so that its products and services are efficiently supplied to the target market. It must
understand the various types of retailers, wholesalers and physical distribution firms as how they
make their decisions.





PLACEMENT OF HERO MOTO CORP

Hero Moto Corp Limited sells the motorcycle through a widely spread all India networks
of over 450 of dealers. The motorcycle can be serviced at the authorized dealers or SSPs (Spare
and Service points). In the year 1996, Hero Moto Corp was the first company to introduce
Indias first chain of automated services workshops. To expand the service network further to
smaller towns, the company has appointed Service extensions.
Hero Moto Corp genuine spare parts are available from the dealers, SSPs and the
stockiest. The company provides good after sales service through its well-established dealer
network. The company has a policy of three S, Single S for stockiest, Double S for services and
three SSS for sales. The company is having about 460 of SSS, which deals in Sales, Service, and
Stock, 260 of SS, which deals in Service and Stock and 12 of S, which exclusively deals in
stocks.
The Network As On 31st March 2002 Is As Under: Dealers (3s_-Sales, Service, Spares)-
458, Ssps (2 S-Service and Spares)-256, Stockiest (Single S-Spares)-12
The company has developed a unique distribution network, which has given it a
distinctive competitive advantage. The whole idea behind establishing this vast distribution
network is to reach the customer even in the remote areas.
The company has segregated the areas as Urban, Rural, and semi rural and has appointed
dealers in many of these areas, after seeing the potential. The companys major thrust is the easy
availability of all the models in every part of the country. The companys bikes are sold through
the dealers and they are required to provide proper infrastructure, Workshops, Facilities, and
trained Personals.
The dealers are given targets and they are required to sell sufficient number of vehicles to
earn a return on investments. Regional offices are in constant touch with these dealers.
50

Presently the company is having 8 regional offices in the country. The regional offices constantly
assist these offices as a kind of linkage between the company and the dealer and the dealers.
The sales and the marketing personals at the regional offices are trained and encourage
maintaining a cordial relationship with various dealers on the basis of trust and understanding.
The companys service engineer and the other sales staff supervise all the facilities at the dealer
and the service outlet from planning the layout to the erecting of the specially designed benches
and the tools.
In fact all the possible efforts are made by the company to make the dealers to become
the part of the Hero family and its culture. The company has appointed fleet of more than 400
trucks from around 45 transporters to assist them in the delivery of vehicle. From the factory and
within the factory premises, the company has a good fleet of trucks and trailers.
The cargos are loaded in the trucks and the trailers and they are delivered at the
stockyards of the dealers in whichever part of the country they may be located. So the company
in this way delivers the motorbikes in the fresh factory conditions. By the time the bike reaches
our dealers they might have done hardly a couple of kilometers.
The company believes the marketing efforts should go beyond ensuring product
availability. The focus is therefore on a vast distribution network. In order to ensure the
customers a better quality service at the various stations, the company mounts an effective
training program in which all the mechanic, supervisory staff and the other senior staff personnel
participate.
The company is also planning to set up some of the fully equipped express authorized
highway. In these highways, one would see a Hero Moto Corp dealer every 15-25 KMS. This
concept is thought by the company with a view to provide good after sales services to the
customer. This exercise will also check the company to check the use of spurious products,
which ultimately spoil the bike. The highways to be covered in this scheme are:
-GWALIOR
-CHANDIGARH
-LUDHIANA
-DHANBAD
The company is perhaps the second company after Maruti Udyog Limited to implement a
factory fresh concept. The company is the only company in the two-wheeler segment having so
51

much of vast distribution network. Hero Moto Corp will be adding 25 more dealers and
50service stations to build a network of 575 dealership-cum-service points (including 400
dealerships) across the country. The level of investment in an automated Hero Moto Corp service
station is expected to be around Rs 10 lakh, apart from land and building.

Consumer Finance:
In order to focus on organized consumer financing, Hero Moto Corp tied up with Tata
Finance a week ago. This is Hero Moto Corp's second tie-up following Centurion, which is
accounting for around 3,000 bikes a month through 100 dealerships.
A thorough understanding of the fast-changing consumer behavior, new market segments
and product opportunities along with sensitivity to changing customer needs, form the core of
Hero's marketing strategy and philosophy.
At Hero we essentially have a completely Customer-driven approach. A nation-wide
dealer network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225
franchise holders for motorcycles, ensures convenient access to the Group's products across the
country.
The Group has undertaken a steady up gradation of technologies and there has been
diversifications and setting up of newer establishments to meet stringent international standards.
At the core of it all is a customer-centric scheme of policies and production and the bottom line
is to "Add Value while Engineering Satisfaction.
DISTRIBUTION CHANNELS AN OVER VIEW OF HERO MOTORCORP
Place is also known as channel, distribution, or intermediary. It is the mechanism
through which goods and/or services are moved from the manufacturer/ service provider to the
user or consumer. The organization must distribute the product to the user at the right place at the
right time. Efficient and effective distribution is important if the organization is to meet its
overall marketing objectives
The Hero Moto corp. use intermediaries such as wholesalers, agents, retailers, the
Internet, and direct marketing for sell their products. The Hero Moto corp. provides their bikes
indirectly to its target customers. The advantage of indirect distribution is that it reduces the cost
of manufacturer.
52

We can see reach easily on the outlets of Hero Moto corp. in every city and buy their
products. This company use Exclusive distribution for selling their products. It means exclusive
distribution Involves limiting distribution to a single outlet.

DISTRIBUTION CHANNEL- HERO MOTORCORP


DEALER MANAGEMENT-
Mapping of regional dealers:
They have been divided into three categories on the basis of their turnover and the selling
capacity.
1. REGIONAL DEALERS:
Includes the modern trade and they have direct billing from the branch office. They have
high turnover and the company depends heavily on them
2. DISTRIBUTORS:
They have direct billing from the branch office. Their turnover is also high.
3. SUB DEALERS :
level 1
Manufacturer
level 2
Distributor
level 3
consumer
53

They have direct billing from distributors or from the branch office. Their turnover is not so
high, but there are few sub dealers whose potential is quite high. According to sales the
branch has designated as gold and silver sub dealers.

PROMOTION
Marketing is an activity, set of institutions, and processes for creating, communicating,
and delivering and exchanges offerings to that have value for customers, clients, partners,
and society at large- American marketing association
PROMOTIONAL STRATEGIES OF HERO MOTO CORP
1. Hero Moto Corp's `Ride Safe and Good Rider' campaign is aimed at communicating the
philosophy of delivering safe products and promoting good driving for the overall safety
of the Hero Moto Corp customer.
2. Created by McCann Erickson, the adHero Moto Corp cares for your safety--invited all
Hero Moto Corp owners to attend the Ride Safe programme on October 27, 2011 at
Delhi's India Gate lawns. This was the first phase of the programme, where three
instructors from Japan demonstrated techniques of right driving.
3. In the second phase, Hero Moto Corp will communicate the launch of the 4S concept
(sales, service, spare parts and safety) at Hero Moto Corp dealerships.
4. The focus of the third phase will be to promote the launch of the Hero Moto Corp Safety
Riding Promotion School, which will have riding simulators and safety riding tracks
5. Hero will take the riding programme-- where trained personnel will give riding tips to
bike owners-- to over 100 dealerships across 90 towns.
6. Promotion in this sector cannot be like that in the Fast Moving Auto parts (Automobile)
sector. The promotions in this sector are like 0% finance schemes and 33 other sort of
things. The company takes the services of many good and reputed advertising agencies
like Reddifuusion, Lintas, sachi & Sachi and others.
7. The company has also signed a kind of agreement with two celebrities just now to be
their brand ambassadors. Hero Moto Corp, a leading manufacturer of motorcycles, has
54

roped in film actor Hrithik Roshan and captain of Indian Cricket team Sourav Ganguly as
its brand ambassadors for three years till 2003.
8. They would endorse the company products, attend corporate and brand events and help
promote its "we care" campaign comprising safety riding, environment, and friendliness.
9. Hero has embarked upon an ambitious project to achieve sale of one million bikes this
year with a market share of 47 per cent. The turnover would be in excess of Rs. 3000
crore.
10. The corporate campaign will be largely complemented by on-ground initiatives under the
umbrella brand of ``We Care'', incorporating activities in the arena of community
services, safety and services programmes, tree-plantations and environmental-friendly
projects.
11. In line with Hero's worldwide, safety riding programme, this fiscal Hero Moto Corp
Motors Limited will take the riding programme-- where trained personnel will give riding
tips to bike owners
SALES PROMOTIONS
Hero Moto Corp regularly has promotions running for its dealers as well as customers in
order to ensure that there is a interest among the target customers about the company and its
products. Normally Company participates in road shows, Sponsors college festivals, promotes
eco friendly initiatives, Have festive Season offers, and sometimes price discounts to attract the
attention of the people.
These promotions are targeted mainly on youngsters as they are the primary buyers of
bikes. The company launches financial schemes as Zero % finance schemes in collaboration with
different banks so that customers can pick bikes in easy installments. The effect of these
promotions can be understood from the fact that 35 % of bikes are sold through this medium.
PROMOTION ANALYSIS:
The company is conducting various promotional activities to promote its products in the market
because these activities only create awareness to the customer towards these products and
increases customer loyalty towards the company.
The various promotional activities conducting by Hero Moto corp. are
1. Advertisements:
55

Company is giving advertisements about its products, offers & other Information in the
televisions, newspapers every year. For this company is Also allocates budget to conduct this
activity successfully.


2. Safe road Programs:
Company is conducting safe road programs for the customers to create awareness on safe
bike riding. For this company conducts this event with the Professional Bike riders & with
the Celebrities also.

3. Discounts:
Company also gives discounts especially to the customers who are government employees,
students & senior citizens.
4. Free Service Campaigns:
Coming to free service campaigns, company is also conducting free service campaigns at
customers work places.
5. Hero Good life Programs & offers:
This Good life programs especially conducting by Hero Moto corp. only. In this program
company conducts games to the customers, lucky dips in every month, bumper draws for
every six months. In this the customers can win new bikes, Prize money & free Trips.
6. Annual Celebrations With the Customers:
Company also conducts annual celebrations by inviting the customers every year. In this the
company conducts some entertainment programs to the customers & offers prizes to the
winners. This increases customer loyalty towards the company.
7. Melas:
Company also conducts exchange melas for the customers who are having interest to buy
new bike by exchanging their old bike.


56




Data Analysis of Marketing Mix Strategies at Hero Honda
Table 1:
Which of the following best describe your age group?
a) 14-18 b) 18-25 c) 25 to 35 d) above 35







Graph 1:
The graph represents the average age group which is consider for survey

Opinion About Age Group % Of Respondents
14-18 years 20
18-25 years 16
25 to 35 years 15
above 35 years 5
Total 100
57




Interpretation:
The above table and graph the age factor of responds is consider identifying the influence of
demographic factor for purchasing the product.
The marketing mix decisions are majority based on consumers taste and references to understand
the buying behavior of the consumers.
Majority of responds are between 14-18 age which constitute 20% of the survey









0
5
10
15
20
25
14-18 years 18-25 years 25 to 35 years above 35
years
Average Age Group
% of respondents
58















Table 2:
For which purpose you purchase the motorbike?
a) College going b) Office going c) Maintain friend circle d) Other purpose








Graph 2:
The graph represents the purpose you purchasing the motorbike

Opinion About Purchase % Of Respondents
College going 39
Office going 25
friend circle 14
Other purpose 22
Total 100
59




Interpretation:
The above table and graph represents the consumer preferences to purchasing the motor bikes.
The aim of marketing is to meet and satisfy target customers wants and needs better than
competitors.
Markets always analyze the existing customer trends to identify new marketing opportunities.
From the study majority of respondents are using motor bikes for personal use






Purpose For Purchasing Motor Bike
College going
Office going
friend circle
Other purpose
60


















Table 3:
Which of following companys motorbike do you have?
a) Bajaj b) HERO MOTO CORP c) Suzuki d) Yamaha e) Any other









Graph 3:
The graph represents the market share amongst various brands
Opinion About Market Share % Of Respondents
Bajaj 32
Hero Moto Corp 40
Suzuki 12
Yamaha 11
others 5
Total 100
61




Interpretation:
The above table and graph represents the maximum share of various brands in motor bikes
divisions.
The marketing strategy involves understanding the consumer perception of the product and
mapping with product attributes.
From this study, the majority of respondents that is 40% have contributed for maximum share for
hero Moto corp.
This is because company adopts effective positioning strategy in terms of pricing, promotion,
and product features.
0
5
10
15
20
25
30
35
40
Bajaj Hero Moto
Corp
Suzuki Yamaha others
Market Share Of Motor Bikes
% of respondents
62













Table 4:
How come you know about that brand?
a) T.V. b) Newspaper c) Dealer effort d) World of mouth e) Internet f) Any other









Graph 4:
Opinion about Brand Awareness % of respondents
Tv 38
News paper 25
Dealer effort 9
Word of mouth 23
others 5
Total 100
63

The graph represents the medium for creating brand awareness





Interpretation:
1. The above table and graph represents the media selection for creating brand awareness
for the product. Branding is an important strategy for differentiation a product from its
competitor.
2. The marketing strategy to create consumer awareness includes developing and
communicative brand equity.
3. It reflect added value on production and services. From this survey it is analyze that the
media for creating brand awareness is maximum selected as electronic media like t.v,
radio etc.


0
5
10
15
20
25
30
35
40
Tv News
paper
Dealer
effort
Word of
mouth
others
Brand Awareness Medium
% of respondents
64


















Table 5:
Rate the following in order of influence to purchase a bike?
a) Brand image of the product b) Price c) After sales service d) Quality and feature of product
e) Ease of availability f) Value for money









Graph 5:
Opinion About Purchase Influencer % Of Respondents
Quality & feature 15
Price 10
Ease of availability 15
Brand image of the product 24
After sales service 32
Value for money 4
Total 100
65

The graph represents the factors influencing purchase behavior




Interpretation:
The above table and graph it is analyzed that majority of responds that is 32% influenced with
after sales services. Brand image of the product will impact the purchase behavior of consumers.
The markets will examine the purchase pattern of consumers to plan the sales promotion
programs and understanding consumer buying behavior.








Purchase Behaviour
Quality & feature
Price
Ease of availability
Brand image of the product
After sales service
66


















Table 6:
Which option you prefer when you purchase a bike?
a) Onetime payment b) Financial option c) Exchange offers d) Any other.








Graph 6:
The graph represents the payment modes opted by a buyer
Opinion About Payment Mode % Of Respondents
Onetime payment 15
Financial option 65
Exchange offers 12
Other modes 8
Total 100
67






Interpretation:
The above table and graph represents pricing strategy which plays an important role in product.
Marketing strategies of the firms has to consider consumer budgetary limit to promote the
product.
Majority of the responds it is 65% opted for financial options during purchase of product like
credit sales, EMI etc





0
10
20
30
40
50
60
70
Onetime
payment
Financial
option
Exchange
offers
Other
modes
Payment Modes
% Of Respondents
68



















Table 7:
Who was the decision maker in your purchase of motor bike?
a) Parents b) Friends c) Yourself d) Spouse e) Other









Graph 7:
Opinion About Purchase Decision % Of Respondents
Parents 15
Friends 35
yourself 22
spouse 8
others 20
Total 100
69

The graph represents the purchase decision maker for the bike

Interpretation:
The above table and graph represents majority of the customers accepted that their purchase
decisions are majorly influenced by friends.
Table 8:
Which physical features contributed most in you buying decision?
a) Looks b) Body build c) Style e) Robustness








Graph 8:
The graph represents the physical features contributed most in buying decision
0
5
10
15
20
25
30
35
Parents
Friends
yourself
spouse
others
purchase decions
% Of Respondents
Opinion About Physical Features % Of Respondents
Looks 35
Body build 25
Style 22
Robustness 18
Total 100
70






Interpretation:
The above table and graph represents the consumer behavior which is influenced with physical
attributes.
The marketing mix strategy majorly includes product decisions to satisfy the consumer
expectations.
Product includes combination of tangible and intangible benefits.
The potential product should attribute and hold consumers.
Form the survey majority responds that is 35% accepted for purchase decisions based on
physical attributes.

Physical Features
Looks
Body build
Style
Robustness
71



















Table 9:
What technological feature effected in your buying decision?
a) Power economy mode b) Mileage c) Four stroke engine d) Any other








Graph 9:
The graph represents the technical features contributed most in buying decision:
Opinion About Technical Attributes % Of Respondents
Power economy mode 22
Mileage 48
Four stroke engine 18
Any other 12
Total 100
72







Interpretation:
The above table and graph represents technical features which contributes buying decisions of
motor bikes.
Majority of responds that is 48% accepted that mileage is the important attributes for motor
bikes.
The purchase decisions also include other technical attributes and their efficiency.





Technical Features
Power economy mode
Mileage
Four stroke engine
Any other
73



















Table 10:
From where did you purchase your bike?
a) Authorized outlet b) Near-by dealer c) Online d) Any other








Graph 10:
The graph represents the sources where purchase is made:
Opinion About Purchase Sources % Of Respondents
Authorized outlet 47
Near-by dealer 33
Online 13
Any other 7
Total 100
74








Table 11:
Which brand has better after sales service?
a) Bajaj Caliber b) Passion c) TVS victor d) Ambition e) LML Freedom f) Other.







Graph 11:
The graph represents the sources where purchase is made:
Purchase Sources
Authorized outlet
Near-by dealer
Online
Any other
Opinion About After Sales Service % Of Respondents
Authorized outlet 47
Near-by dealer 33
Online 13
Any other 7
Total 100
75









Table 12
2009-2010 SALES ANALYSIS
After Sales Services
Authorized outlet
Near-by dealer
Online
Any other
PRODUCTS 2009-2010
SALES
CD DELUX 310
SPL PLUS 1395
PASSION PLUS 169
PASSION PRO 1880
SPLEDOR NXG 25
SUP. SPLENDOR 10
76














INTERPRETATION:
From the below sales analysis it was understood that, sales of 2009-2010 are 5185. The
company is giving more importance to promotional activities by conducting melas and
giving huge discounts. And customers also attracted towards to these products for
mileage efficiency, better pickup & good price.



GRAPH: 12
GLAMOUR 490
GLAMOUR FI 0
CBZ EXTREME 455
HUNK 25
KARIZMA 1
PLEASURE 230
SPLENDOR PRO 195
TOTAL 5185
77






310
1395
169
1880
25
10
490
0
455
25
1
230
195
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2009-2010 sales
2009-2010 sales
78

TABLE-13
2010-2011 SALES ANALYSIS
PRODUCTS 2010-2011 SALES
CD DELUX 359
SPL PLUS 1435
PASSION PLUS 200
PASSION PRO 2087
SPLEDOR NXG 30
SUP. SPLENDOR 11
GLAMOUR 510
GLAMOUR FI 0
CBZ EXTREME 479
HUNK 29
KARIZMA 3
PLEASURE 246
SPLENDOR PRO 241
TOTAL SALES 5608

INTERPRETATION:
From the above sales analysis it was understood that sales of SPL plus & Passion pro are
very high compared to other products. The company is giving more importance to these
two products in promotional activities by conducting melas and giving discounts. And
customers also attracted towards to these two products for mileage efficiency. And
company spent huge amount to advertisements, which attracts the customers when
compared to previous year.


79

GRAPH: 13



359
1435
200
2087
30
11
510
0
479
29
3
246 241
0
500
1000
1500
2000
2500
2010-2011 SALES
2010-2011 SALES
80

TABLE 14
2011-2012 SALES ANALYSIS
PRODUCTS 2011-2012
SALES
CD DELUX 272
SPL PLUS 1255
PASSION PLUS 383
PASSION PRO 1795
SPLEDOR NXG 85
SUP. SPLENDOR 117
GLAMOUR 631
GLAMOUR FI 0
CBZ EXTREME 332
HUNK 29
KARIZMA 17
PLEASURE 319
SPLENDOR PRO 0
TOTAL 5235

INTERPRETATION:
From the above analysis it was understood that the sales has been decreased from 5600 to 5235
in 2011-2012 year. The company has reduced its promotional campaigns when compared to the
previous year. And another reason is hero and Honda both companies are breakup their
agreement and established separately their manufacturing units. This has also shown impact on
the sales.


81

GRAPH-14

272
1255
383
1795
85
117
631
0
332
29
17
319
0
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2011-2012 SALES
2011-2012 SALES
82

TABLE 15
COMPARISON BETWEEN 2009-10 SALES & 2010-11 SALES
S.NO PRODUCTS 2009-10 2010-11 DIFFERENCE
1
CD DELUX 310 359
49
2
SPL PLUS 1395 1435
40
3
PASSION PLUS 169 200
31
4
PASSION PRO 1880 2087
207
5
SPLEDOR NXG 25 30
5
6
SUP. SPLENDOR 10 11
1
7
GLAMOUR 490 510
20
8
GLAMOUR FI 0 0
0
9
CBZ EXTREME 455 479
24
10
HUNK 25 29
4
11
KARIZMA 1 3
2
12
PLEASURE 230 246
16
13
SPLENDOR PRO 195 241
46
14
TOTAL 5185 5608
423

INTERPRETATION:
From the year 2009-2010 the sales have been increased from 5185 to 5608 in 2010-2011.
Because in the year 2009-2010 the company given huge discounts to the customers in purchasing
their products. This result shows 5185 sales in that year. But in 2010-2011 the Company mainly
focused on Advertisements & free service campaigns which are created awareness to the
customers about Hero products. This result shows 5608 sales in that year.

83

GRAPH 15





0
500
1000
1500
2000
2500
A
x
i
s

T
i
t
l
e

Axis Title
2009-10
2010-11
84

TABLE-16
COMPARISON BETWEEN 2010-2011 SALES & 2011-2012 SALES
S.NO. PRODUCTS 2010-2011 2011-2012 DIFFERENCE
1
CD DELUX 359 272
-87
2
SPL PLUS 1435 1255
-180
3
PASSION PLUS 200 383
-183
4
PASSION PRO 2087 1795
-292
5
SPLEDOR NXG 30 85
55
6
SUP. SPLENDOR 11 117
-106
7
GLAMOUR 510 631
121
8
GLAMOUR FI 0 0
0
9
CBZ EXTREME 479 332
-147
10
HUNK 29 29
0
11
KARIZMA 3 17
14
12
PLEASURE 246 319
73
13
SPLENDOR PRO 241 0
-
14
TOTAL 5608 5235
-373

INTERPRETATION:
Compared to 2010-2011 annual year, in the year 2011-2012 the sales of Hero Moto corp.
Company have been decreased to 5235 from 5608. Because even though the company is
conducting promotional activities every year, the company is divided into two groups that Hero
& Honda and Hero Started its own productions as Hero Moto Corp. Based up on the customer
loyalty towards Hero Honda in the market the sales are decreased to 5235.

85

GRAPH: 16




0
500
1000
1500
2000
2500
2010-2011
2011-2012
86

TABLE-17
BUDGET ALLOCATION FOR PROMOTIONAL ACTIVITIES IN THE
YEAR 2009-10
PARTICULARS
FOR THE PERIOD
2009-2010
AMOUNT(Rs)
ADVERTISEMENTS 349523
DISCOUNTS 1213595
MELAS 50955
FREE SERVICES 106207
OTHER
PROMOTION
EXPENDITURES
57767
TOTAL AMOUNT 1778047


INTERPRETATION:
In the year 2009-2010 the company has been spent huge amount for promotional activities i.e.
for advertisements, discounts, melas, free services, and other promotional activities. The total
amount spent by the company was 17, 78,047/-. In this amount, majority of amount is only spent
in the form of discounts i.e. 12, 13,595/-. And this results the sale of 5185 products in that annual
year.


87

GRAPH: 17




349523
1213595
50955
106207
57767
0
200000
400000
600000
800000
1000000
1200000
1400000
2009-2010
advertisements
discounts
melas
free services
other promotion exp
88

TABLE 18
BUDGET ALLOCATION FOR PROMOTIONAL ACTIVITIES IN THE
YEAR 2010-2011

PARTICULARS
FOR THE PERIOD
2010-2011
AMOUNT(Rs)
ADVERTISEMENTS 395884
DISCOUNTS 47971
MELAS 34020
FREE SERVICES 115448
OTHER
PROMOTION
EXPENDITURES
115413
TOTAL AMOUNT 708736

INTERPRETATION:
In the year 2010-2011 the company has been spent huge amount for promotional activities i.e.
for advertisements, discounts, melas, free services, and other promotional activities. The total
amount spent by the company was 7, 08,736/-. In this amount, majority of amount is only spent
in the form of advertisements i.e. 3, 95,884/-. And this results the sale of 5608 products in that
annual year.



89

GRAPH 18:


395884
47971
34020
115448 115413
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
2010-2011
ADVERTISEMENTS
DISCOUNTS
MELAS
FREE SERVICES
OTHER PROMOTION
EXPENDITURE
90

TABLE-19
BUDGET ALLOCATION FOR PROMOTIONAL ACTIVITIES IN THE
YEAR 2011-2012



INTERPRETATION:
In the year 2011-2012 the company has been spent huge amount for promotional activities i.e.
for advertisements, discounts, melas, free services, and other promotional activities. The total
amount spent by the company was 7, 13, 056/-. In this amount, majority of amount is only spent
in the form of advertisements i.e. 3, 53, 336/-. And this results the sale of 5235 products in that
annual year.


PARTICULARS
FOR THE PERIOD
2011-2012
AMOUNT(Rs)
ADVERTISEMENTS 353336
DISCOUNTS 13783
MELAS 148551
FREE SERVICES 151357
OTHER
PROMOTION
EXPENDITURES
46029
TOTAL AMOUNT 713056
91

GRAPH-19:




353336
13783
148551
151357
46029
0
50000
100000
150000
200000
250000
300000
350000
400000
2011-2012
ADVERTISEMENTS
DISCOUNTS
MELAS
FREE SERVICES
OTHER PROMOTION
EXPENDITURES
92

TABLE-20
Amount spent for promoting two wheelers
YEARS Total amount for promotional
activities (Rs)
2009-2010 1778047
2010-2011 708736
2011-2012 713056

INTERPRETATION :
From the above table we understood that, the company is giving more importance to promote its
products by allocating budgets to promotional activities every year.In the year 2009-2010
company has been spent Rs 17,78,047/- only for promotional activities. But it was reduced to Rs
7, 08,736/- in the next year. Because in the year 2009-2010 company has been spent huge
amount only by giving discounts but it has been reduced in 2010-2011 & 2011-2012 years. In
these years company has spent huge amount for advertisements only. And this results more sales
compared to 2009-2010 year.




93

GRAPH-20:










1778047
708736 713056
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
2009-2010 2010-2011 2011-2012
Total amount spent for promotional activities (In Rs)
Total amount for promotional
activities
94

SUMMARY
During the 80s, Hero Moto Corp (previously Hero Honda) became the first company in
India to prove that it was possible to drive a vehicle without polluting the roads. The company
introduced new generation motorcycles that set industry benchmarks for fuel thrift and low
emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of
commuters across India, and Hero Moto Corp (previously Hero Honda) sold millions of bikes
purely on the commitment of increased mileage. In today world customer is the king irrespective
of whatever the business may be, wherever the operations may be.
Good business organizations known by its strong customer loyalty, which turns to
become a unified family. The project assigned to me by the company was a market mix study on
100cc bikes among the dealers with special reference to Hero Moto Corp (previously Hero
Honda) dealers.
The objective of the study was to find out the dealers opinion about the100cc bikes with
special reference to Hero Moto Corp (previously Hero Honda) dealer to understand how market
fluctuations affect their strategic decision. Different models Hero Moto Corp (previously Hero
Honda) vehicles can be introduced for ladies, with better comfort, speed and power, so that it can
cater to the changing tastes of women.
More service stations should be established in every part of the city, so those customers
have an easy accessibility. With a strong sales and service network of 650 Authorized dealership,
1500 authorized service centers and over 1000 certified service points, Hero Moto Corp
(previously Hero Honda) is growing from strength to strength. Hero Moto Corp (previously Hero
Honda) motor should also start producing other models and should add a different style and
variety to their product line. This will surely attract more customers. This will help to increase
the existing goodwill and position in the market. The experience gained during the analysis and
drawing inferences was an exciting and informative exercise under the guidance of unit head


95

FINDINGS
During this research project the marketing mix strategies of hero motocorp are analysed with
special reference to Vara Lakshmi motors ltd.
1. Hero Moto Corp (previously Hero Honda) is considered to be most fuel-efficient bike on
Indian roads.
2. Service & Spare parts are available throughout India in local markets also.
3. While buying a motorcycle, economy is the main consideration in form of maintenance
cost, fuel efficiency.
4. Number of products is large in comparison to others
5. The distribution policies are more efficient than any other company.
6. Hero Moto Corp (previously Hero Honda) makes more stress on advertisement on
television and help there dealers for local advertisement.
7. The pricing policy of Hero Moto Corp (previously Hero Honda) is for better than the
pricing policy of the competitors.
8. Now the performance of Hero Moto Corp (previously Hero Honda) product is also very
good regarding to the bike owner of the Hero Moto Corp (previously Hero Honda).
9. Companys marketing mix strategy in terms of various products, pricing strategies,
channels of distribution and promotional activities is analyzed.
10. The company launches various products based on customer requirements.
11. The channels of distribution included three levels i.e. manufacturer distributor
customer.

96

SUGGESTIONS
After doing market research I would like to suggest or recommend to the Company that
there are certain outcomes of research, which followed through the formal and informal
procedure during the research. Thus we are bound to draw the attention of Company to certain
points which are ought to be perceived by the Company with full care.
Publicity and advertisement should be broad, because competition is more. Size and
weight of bike should be match with their C.C. Company should follow worldwide strategies for
increasing their global revenue. Bike should have stepping facility which may help during
critical situation.
Company should provide promotional schemes to the customers. Now Company is
required to recover the faith of customers towards the brand image. Company should improve
the mileage of the Bikes. Prices of the Bike must be set as it can be approved by major part of the
population.
Fuel tank portion can be changed Hero Moto corp. introducing the new products and they
want to produce different sizes of products. They are producing different bikes based on
customer requirements to increase sales and set the market demand.
The market pricing feedback must reach basic users and middlemens in a structured
manner to make the pricing decision effectively and to ensure competitive price. More
distribution centers are to be appointed.
This will help to reach the rural markets. They want increasing more publicity by way of
advertisements and using various sources like media, radios newspapers to done in specific
location where VSP present is poor awareness level are look.