MBA Programme

Pune.

Bharati Vidyapeeth University,

A
PROJECT REPORT
ON
IMPACT OF SALES PROMOTION ACTIVITIES ON
SALES

MENON BEARINGS PRIVATE LTD.

SUBMITTED BY
Mr. PATEL APPALAL D.
B.SC.

SUBMITTED TO
BHARTI VIDHYAPEET UNIVERSITY INSTITUTE
OF MANAGEMENT KOLHAPUR
IN PARTIAL FULFILLMENT OF M.B.A. DEGREE
UNDER THE GUIDANCE OF
PROF. M. N. PALIWAL
M.Sc. M.I.B.

THROUGH
THE DIRECTOR
BHARATI VIDYAPEETH S
INSTITUTE OF MANAGEMENT, KOLHAPUR
B. V. U. Institute of Management,

Kolhapur

MBA Programme
Pune.

Bharati Vidyapeeth University,

2006-2008

DECLARATION
I, the undersigned hereby declare that this report entitle IMPACT
OF SALES PROMOTION ACTIVITIES ON SALES Is genuine &
Bonafide work prepared by me under the guidance of

PROF. M. N.

PALIWAL & is my original work. The empirical findings in

the report are based on the data collected by me. The matter presented in
this project is not copied from any way the university authorities deem to be
fit. This work has not been submitted for the award of any diploma or
degree either in Bharti or any other University.
This work is humbly submitted to Bharti University for the award
of the Master of Business Administration.

Place:
Date:
Mr. PATEL APPALAL D.

B. V. U. Institute of Management,

Kolhapur

MBA Programme
Pune.

Bharati Vidyapeeth University,

BHARTI VIDHYAPEETHS INSTITUTE OF

MANAGEMENT , KOLHAPUR

Directors Recommendation
Date :To,
The Registrar,
BVU Institute of management,
Kolhapur
Subject:- MBA Project Report
Sir,
I am recommending the project report titled A IMPACT OF
SALES PROMOTION ACTIVITIES ON SALES With special reference
to MENON BEARINGS PRIVATE LTD Prepared by Mr. Mr.
PATEL APPALAL D. towards the partial Fulfillment of the university
requirement for the degree in Master of Business Administration , 20062008, of BVU Institute of Management, Kolhapur
Thanking You ,
Yours Faithfully
Date :
Place:
Dr. V. M. Chavan
( Director )
B. V. U. Institute of Management,

Kolhapur

MBA Programme
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Bharati Vidyapeeth University,

BHARTI VIDHYAPEETHS INSTITUTE OF

MANAGEMENT , KOLHAPUR

Guides Certificate
This is to certify that Mr. PATEL APPALAL D. is a student of
MBA degree Programme studying in this institute from the academic year
2006-08 In partial Fulfillment of the degree M.B.A. he has completed a
project work A IMPACT OF SALES PROMOTION ACTIVITIES ON
SALES Under my guidance satisfactorily.

Place :
Date:
PROF. M. N. PALIWAL
( Project Guide )

B. V. U. Institute of Management,

Kolhapur

MBA Programme
Pune.

B. V. U. Institute of Management,

Bharati Vidyapeeth University,

Kolhapur

MBA Programme
Pune.

Bharati Vidyapeeth University,

INDEX

1. INTRODUCATION TO STUDY

A)INTRODUCATION
B)OBJECTIVES
C)RESEARCH METHODOLOGY
2. INTORDUCATION TO THE ORGANISATION

A)INTORDUCATION
B) BRIEF HISTORY OF ORGANISATION
C) SUBSIDARY
D)DEPARTMENT
E) ORGANISATION STRUCTURE
3. THORITICAL BACKGROUND
4. DATA ANALYASIS & INTERPRETATION
5. FINDING & OBSERVATIONS
6. SUGGESTIOS & CONC
7.

BIOBLOGRAPHY

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INTRODUCTION TO THE STUDY :

1.1 INTRODUCTION :
As the part of academic curriculum the Master of Business
Administration program. Each student has to undergo training program in an
organization the researcher has completed in plant training program in
Menon Bearings Pvt. Ltd .Dist. Kolhapur which was established in 1992.
The industry located in the researcher native place and researcher can get
easily all the information about in organization.
The researcher has done project on the topic of Impact of Sales
Promotion Activities on Sales. In marketing mix having 4 Ps product
mix, price mix, promotion mix, and place mix. The sale promotion is a part
of promotional mix and its come under its come under two type of aids.
Dealers Aids / Distributor / Retailers Aid :
Consumer aids.
The definition of the sales promotion Those marketing activities,
other than personal selling, advertising and publicity, that stimulate
consumer purchasing and dealer effectiveness, such as displays, shows and
demonstrations, exposition and various non-current selling efforts, non in
ordinary routine.
Sales promotion activities are impersonal and usually non recurring
and are directive to ultimate consumer, industrial were and middle men.

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The basic goals of sales promotion :

To introduce new product.
To attract new customers.
To include present customers to buy more.
To help firm remain competitive.
To increase sales in off seasons.
To increase the inventories of business buyers.

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Objectives of study
1. To Study the production performance of menon bearing limited.
2.

To Study of sales performance of domestic as well as export

Market

To find out customers contribution of the company products

To Study the sales forecast estimated sales for menon bearing brands
of the products during a stated period in a specific market.

5 To study the company profile.

6 To give suggestion for improvement of the organization

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Research Methodology of the Study:

Research in common parlance refers to a search for knowledge.
Research can be defined, as A scientific and systematic search for pertinent
information on a specific topic Infect research is an art of scientific
investigation, random and moray define research as a systematized effect to
gain new knowledge
Research comprises of defining and redefining problems, collecting,
organizing and reaching conclusions. The last step could be determine
weather they fit the formulated hypothesis.
Research methodology is ways of systematically solve the research
problems it may be understood as a science of studying how research is done
scientifically.
The scope of research methodology is wider than that of research methods.
Thus when researcher talk of research methodology researcher not only talks
of research method but also consider the logic behind the methods use in the
context of research study.
There are two methods of collecting data.
Primary Data
This is especially collected for the purpose on first hand basis. It is not
referred to any available data. This is collection through questionnaire,
interviews, focus groups survey etc.

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Secondary Data
Secondary data is collected through the following sources
Company record: It is collected through the literature available from the company
records.
Web site: The second sources for collecting the data is website of the company
Reference Book: The third sources used by researcher to collect the data are reference books
and journals.

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INTRODUCTION TO THE ORGANIZATION:

Name:

Menon Bearing Limited.

Location: G-1, MIDC Area, Gokul Shirgao.

Ph.:

0231 2672279
2672533

Fax:

+91-231 2672278

Email:

menonbrg@sancharnet.com

Website:

www.menonbearings.com

BOARD OF DIRECTORS :
Mr. Ram Menon

Chairman

Mr. R.D. Dixit

Vice chairman & M.D.

Mr. Sachin Menon

Director

Mr. Nitin Menon

Joint Managing Director

Mr. K. Guha

Ex. Director

Mr. Kumar Chandra nair.

Director

Mr. P.M. Vardhe

Auditor

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M/s P.M.Vardhe & Company.

Bharati Vidyapeeth University,

Charterd Acc.

2.1 INTRODUCTION TO THE INDUSTRY :

Menon Bearing Limited was founded in the year 1992, it is
incorporated as a public limited company.
Menon Bearing limited manufacturers a whole range of thin walled
bimetal engine bearing, bushes of thrust washers for light and heavy
automobile engines, two-wheelers engine as well as for compressor and for
refrigerator, air conditioner, etc.
Today Menon Bearing limited has sizable export to the U.S.A., U.K.,
Israel, Turkey, and France, etc. The original equipment manufacturer,
suppliers such as Cummins India limited, Kirloskar, Tata, Maruti Udyog,
Eicher, L & T, Johndeer, Hero Honda, Mahindra, etc. The overseas customer
such as Mack Truck, Mack Bee, King Limited, Lister Peter (U.K.), U.S.
Techno Engineering and many more.
Plant capacity of the Menon Bearing limited about the products are
quantity wise produces 3 to 4 lack, Bush 5 to 6 lack, Thrust Washers 3 to 4
lack. It is an highly sophisticated plant at Kolhapur for original market,
replacement market as well as export market. Today the Menon Bearing
limited with present level of export at 30% of capacity.
Menon Bearing limited as QS 9000 certified by LRGA-UK.Menon
Bearing Company listed on Bombay, Pune, and Ahmedabad, Stock
Exchange.

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2.2 BRIEF HISTORY OF THE ORGANISATION :

Menon Group is one of the largest equipment suppliers of some of the
most critical engine component faced to high combustion and high friction,
to leading names in the Indian Automobile Industry.
Menon Group have 1200 employee workforce with business activities
in 24 countries around the globe. The global outlook is also reflected in its
collaboration from Nippon Piston Rings to Izumi Industries of Japan and
King Limited Israel, where the world leaders in auto components have
reposed their faith on the technical capabilities of the group.

Major Achievements:
1 Company has been awarded ISO 9002 Certificate BUREAU VIRTUES
QUALITY INTERNATIONAL, LONDON.
2 The company has been awarded by QS 9000
3 SHIP TO USE is awarded by CUMINS GREAVES KIRLOSKER,
COPELAND
For high and consistent quality standards.
4 BEST SUPPLIRS OF THE YEAR BY CUMINS INDIA LTD.
5 BEST AMONG THE BEST award from CUMINS INDIA LTD.

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6 SELLS CERTIFIED SOURCE FROM TELCO.

Departments :
1) Finance Department
2) Production department
a) Production engineering department
b) Production research department
c) Production planning control department
3) General administrative department
4) Marketing department
a) Original equipments manufacture
b) Replacement
c) Export

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Subsidiries :
1. Menon bearing Limited Kolhapur.Gokul shirgaon MIDC
area.
2. Menon and piston PVT. LTD. Kolhapur.
3. Menon & menon PVT. LTD. Kolhapur.
4. Menon auto LTD. Kolhapur.
5. Menon alkop limited, Kagal.
6. Menon information technology, PVT. LTD. Benglore

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PRODUCT TYPES :
1 Bearings :
a) con rod bearings
b) Crank shaft bearings
c) Flanged bearings
d) tri metal bearings

2 Bushes :
a) Conrod truncate bushesh
b) Crack shaft bushes
c) Bush for conrod
d) Small end bushesh

3 Thrust washers :
a) Ring type thrust washers
b) thrust face contour

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Chairman

Managing Director

Joint Managing Director

Executive Director

Incharge of Engineering

Company Secretary

Incharge of
Quality
Department

Incharge of Production
Engineering
department

Incharge of
Administration
Managing
representative

Incharge of Finance

Incharge of Production
Recruitment

Incharge of Marketing
Incharge of Production
Planning Control
OEM
Replacement

Export

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THEORATICAL BACKGROUND
BASIC CONCEPT SALES PROMOTION ACTIVITY
The term sales promotion is a catch-all for a wide variety of
promotional activities. It has been defines as : Those marketing activities,
other than personal selling, advertising and publicity, which stimulate
consumer purchasing and dealer effectiveness, such as displays shows and
demonstrations, expositions, and various non-current selling efforts, non in
ordinary routine. Therefore, advertising generally used along with personal
selling and both are complementary to each other.
Sales promotion activities are impersonal and usually non-recurring
and are directive to ultimate consumers, industrial users, and middle-men.
Sales promotion serves as a bridge between advertising and personal
selling and its supplements and co-ordinates efforts in these two areas. In
modern times the importance of sales promotion has increased
tremendously. Lacks of rupees are now spent on determining the most
effective techniques and appeals for arresting the attention of the prospects
into the dealers space of business. Consumers dissatisfaction about
particular product of a particular manufacturer can be removed by
aggressive sales promotion programmed Sales promotional devices are often
the only promotional materials available at the point-of purchase.
Advertising media reach the consumer at their homes, offices or while in
travel, and they may soon forgotten. But sales promotional devices at the

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point of purchase remind of stimulate the customer to make purchase

promptly on the spot.

The recent trend is to go for freebies for example :

LML grand exchange offer for scooter of any make
Philips Phil shaver for exchange with old electric shaver
RPG Numeric pager with purchase of BPL., Maharaja Washing
Machine, HCL Computers, Liberty Shoes etc.

The basic goals of sales promotion are :

To introduce new products
To induce buyers to purchase a new product, free samples may be
distributed, or money and merchandise allowance may be offered to
business to stock and sell the product.
To attempt new customers.
New customers may be attracted through issue of free samples,
Premiums, contests and similar devices.
To induce present customers to buy more.
Preset customers may be induced to buy more by knowing more
about a product, its ingredients and uses.
To help firm remain competitive.
Sales promotion may be undertaken to meet competition from a firm.
To increase sales in off-seasons.
Buyers may be encouraged to use the product in of seasons by
showing them the variety of uses of the product.
To increase the inventories of business buyers.
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Retailers may be induced to keep in stock more units of product, so

that more sales can be affected.

Examples of sales promotion activities are

Consumer Promotion
Sampling

Channel Promotion
Bonus

Given way product to induce trail

Coupon

Extra cash payment for sale

Push Money or Premium

Certificate that reduces prices

Cents-off promotion

Bonus on certain brand.

Contests

Reduction in regular prices

Prizes to best sales efforts in a

Premium

given period
Co-operative advertising

Small extra gift with product

Manufacturer and distributor

Competition

share advertising costs

Dealer-listed promotion

Contests, Sweep-stakes

Manufacturers advertisement

Demonstrations

that lists distributor

Consignment

Sharing of product in use

Manufacturers finances

Trading stamps

distributor inventories
Point of purchase Display
Counter top, poster,
mechanized.

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Couponing:
Coupons are generally supplied along with the product, which entitle
the holder to either a specified savings on a products or a cash refund. Most
coupons are designed to (a) introduce a new product (b) increase sale of an
established products, (c) sell new and larger sizes of a products, (d) induce
customers to switch brands, or (e) encourage repeat sales.
Coupons are used for consumer convenience goods. They may be
distributed by mail or door to door inserted in packages, or part of magazine
or newspaper advertisement. When coupons are used to promote a product
caution must be exercised to prevent fraud.

Dealers sales promotional activities :

When products are sold by manufacturers through the retailers or
wholesalers, promotional activities may be employed for attracting the
retailers and wholesalers to keep a large stock with them. Such activities
consist of offering cash or trade discount, on the basis of orders placed,
display and advertising allowances (to compensate the dealers for the space
given for the display of manufacturers product), and premium for getting
sales above a particular limit.
The objectives of premiums are generally to (i) induce consumes to
switch from a competitors product to the sellers, (ii)induce consumers to
try larger sizes of products (iii) increase off season sales (iv) introduce a new
product, (v) obtain names of prospects, and (vi) off-set price competition.

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DATA ANALYASIS & INTERPRETATION

Product wise sales performance of last five years

SR.NO

PRODUCT
1 BUSH

2002-03
70498885

2003-04

2004-05

2005-06

93197211 117319695 104172656

2006-07
107845890

The above graph shows that, in the year 2002-03 the sales was
lowest and in the year 2004-05 the Sales was highest.

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Bearing Sales:
SR.NO

PRODUCT
2 BEARINGS

2002-03

2003-04

2004-05

2005-06

2006-07

52466446

66738926

86852533

87763788

89003824

The above graph shows that, in the year 2002-03 the sales was
lowest and in the year 2006-07 the Sales was highest.

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T/W Sales
SR.NO

PRODUCT 2002-03
3 T/W

2003-04

2004-05

2005-06

2006-07

18903977 26919884 48862844 47500393 53550211

The above graph shows that, in the year 2002-03 the sales was
lowest and in the year 2006-07 the Sales was highest.

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Customer wise last five years sales Performance

(VALUE IN LAKHS)
Sr.
No.

O.E(Original
Equipment)/Years

TATA MOTORS (PUNE)

2002-03

200304

200405

200506

200607

130.2

200.2

260

210.1

310.6

19.3

8.3

28.75

65.14

90.65

20.5

25.1

35.7

35.4

75.45

45.2

55.5

105

120.55

190.95

JAMSHEDPUR
MAHINDRA & MAHINDRA
(PUNE)
CUMMINS INDIA LTD.,
(KP)
MARUTI
UDYOG(GORGAON)

5.7

6.6

7.65

5.85

7.2

JOHN DEAR LTD.

18.1

55.2

90.9

50.6

105.6

3
4

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As per the graph the customer sales shows increasing in sales in

the year 2006-07 and showing lowest sales in the year 2002-03.
The graph remark that the Tata motors sales is

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Higher than other Customers. And its below the Cummins India
Ltd.

Customer wise last five years sales Performance of

Export Sales

Sr.
No.

Customer name

2002-03 2003-04 2004-05 2005-06 2006-07

Mack truck U.S.A.

120.4

160.4

220.2

285.7

130.95

Inter state McBee

Ltd.

35.15

85.1

165.5

95.35

210.9

Arrow Eng. USA

15.3

15

20.2

20.75

30.95

Lister Peter ltd. UK.

0.4

4.1

10.15

35.1

50.7

U.S. techno Eng.

20.25

15.6

50.2

50.9

30.15

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Customer wise last five years sales Performance of

Export Sales

As per the graph the Export sales shows increasing in sales in the
year 2005-06and showing lowest sales in the year 2002-03. The

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graph remark that the increasing and Decresing of export of mack

trucks U.S.A. and inter state Mc. Bee Ltd.
Higher than other Customers. And the lowest performance of
Arrow Eng. USA.

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Findings and Suggestions:

Findings:
1. After observation and survey it is found that maximum No.
of Distributors and retailers demanding for the sales
promotion activities
2. After observation and survey it is found that the most no. of
respondent gives first preference to bimetal and kirloskar as
compare to menon product.
3. After observation and survey it is found that the Distributors
are not satisfied with the margin.
4. After observation and survey it is found that the Companies
market share is low as compare to other competitors.
5. After observation and survey it is found that the distribution
channels are least in no.

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Suggestions:
1. Company should increase the production capacity.
2. Company should increase and motivate the distributors
and retailers by giving them Gifts, key chains etc.
3. Company should improve the quality of all products.
4. Company should Increase the no. of Distribution
Channels.
5. Company should launch the better scheme for higher
purchaser.

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Conclusion:
From overall studies it is concluded that MENON BERINGS
PVT. LTD. Has a tremendous growth in market
They should keep concentrate on maintaining the
quality and pricing policy of company as compare to other
competitor and also keep concentrate on sales promotion
activities of all menon products.

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BIBLIOGRAPHY
1. MARKETING MANAGEMENT:
PHILIP KOTLER
2. INTERPRENERIAL DEVELOPMENT:S. S. KHANKA
3. ADVERTISING AND SALE PROMOTION
M.N. MISHRA

4. www.menonbarings.com.

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Impact of Sales Promotion Activities on Sales

Q U E S T I O N N A I R E
General :
1) Name
Address

:
:

2) Which brand you are using for Bearings, Bushes & Thirst Washers?
a) Menon Bearings Ltd.
b) Kirloskar Oil Engine
c) Gabrial (I) Ltd. (Anand)
d) Bimetal Bearings Ltd.
e) Patel Brass Works (PBW)
3) What is the criteria for using particular brand?
a) Quality
b) Price
c) Service
d) Attractive Schemes
e) Any other
4) Are you aware of all Menon Bearings Products ?
a) Yes

b) No

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5) How do you come to know about Menon Bearings Products?

a) Advertisement
b) Field / Sales Officer
c) People in same business
d) Any other
6) Are you aware of Menon Bearings Promotion schemes / policies?
a) Yes

b) No

7) Which Promotion scheme / facility do you get?

a) Coupon scheme
b) 20 + 1 scheme
c) Gold Dhamaka
d) New Festival Dhamaka
e) Special discount
8) Do you use / sell more Menon bearings products after getting new scheme
?
a) Yes

b) No

9) Give the rating to Menon Bearings product quality.

a) Excellent

b) Good

d) Poor

e) Very Poor

c) Average

10) Do you receive any complaints from final customers ?

a) Yes

b) No

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11) Mention any suggestions to improve Menon Bearings sale.

a)
b)

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