You are on page 1of 110

Introduction

Technology advancements have increased the modes in which advertisers reach


their targets and, in turn, the way in which advertising is measured has also
advanced. By capitalizing on avenues such as web sites, e-mail marketing, and
internet advertising, there are more ways to gauge advertising campaigns’
effectiveness by incorporating… enterprises incorporating an Advertising
Effectiveness Survey solution powered by, confirm it can gauge advertising
success and ROI, through some of the following methods:

• Measure brand awareness prior to, during, and after a campaign.

• Measure customer demographics before and after a campaign to determine if


the intended target was reached.

• Measure visibility of the campaign and market opinion.

• Measure the perceived message of a campaign.

By implementing an Advertising Effectiveness Survey solution, enterprises enjoy


confirm it’s ability to fully integrate with existing advertising or marketing
applications, facilitating greater accuracy, speed, and detail in their surveys.
Confirm it solutions also feature a fully scalable platform that can measure
thousands to millions of consumers.

1
Objectives of the study

The advertising objectives flow from prior decisions on target market, market
positioning and marketing mix. An advertising goal or objectives is a specific
communication task and achievement level to be accomplished with a special
audience in a specific period of time.

The study includes –

• To find the effectiveness of Mahindra two wheelers advertising.

• Who are the target customers of Mahindra two wheelers?

• What kind of advertising they use?

• How they reach customers?

• What is the public opinion in Mahindra two wheelers Ads?

2
Limitations of the study

However the study may not be free from certain limitations. Since the sample size
only 500 persons, opinion and benefits may not represent the universal opinion. At
the same time the personal prejudices are of different people and their secrecy may
also acts as an hindrances of the study. Therefore every care has been taken to
ensure that the study represents the true findings of the sample size.

The limitations are

• Geographic factors

• Demographic factors

• Psychological factors

• Due to financial reasons the sample size is limited.

3
Scope of the study

The scope of the study is limited to Hyderabad and secunderabad. The data has
been collected from the areas of consumer’s greater buying potentiality. The study
has been done on the basis of their preferences and interests on the Brand name
MAHINDRA TWO WHEELERS…..

4
Research Methodology
(A)Introduction
Marketing research is the function which links the consumer, customer
and public to the marketers through information used to identify and define
marketing, opportunities and problems, generates refine marketing action; monitor
marketing performance; and improve understanding of marketing as a process.

Marketing research specifies the information required to address these


issues; designs the method for collection information manages and implements the
data collection process; analysis the results and communication the findings and
their implication.

Research definition:

“Research is careful inquiry or examination to discover new


information and relationship and to expand and to verify exiting knowledge,”

Research always starts with questions or a problem. Its purpose is to


find answer to questions through the application of the scientific method. It is a
systematic and intensive study directed towards a more complete knowledge of the
subject studies.

(B) Research design

“Research design is the plan, structure and strategy of investigation


conceived so as to obtain answer to research question and to control variance.”

5
- BY KERLINGER

From definition it is evident that research design is more or less a blueprint of


research.

At the outset may be noted that there are several ways of studying and
tackling a problem. There is no signal perfect design. The research design can be
classified in to true broad categories:

(A) Exploratory
(B) Descriptive
(C) Casual
Exploratory research is focus on the discovery of ideas. Exploratory research
is carried out to define problems and developed hypothesis to test later. An
exploratory study is generally based on the secondary data that are reading
available. It does not have to change his focus of direction, depending on the
availability of new ideas and relationship among variables.

Descriptive studies are undertaken in many circumstances. Descriptive


studies can be complex, determining a high degree of scientific skill on the part of
the researcher.

Casual research helps in determined cause and effect relationship. Between


two or more variables.

The present study seeks to find out the consumers attitude towards buying of
bike. The study also aims at findings out the drawbacks of the marketing set up of
Hero Honda PVT. LTD. So this makes the study a descriptive one.

6
D) Sources of Data
The sources of data collection methods are as follows.

a) Primary data:-

The primary data is that which details we collect first time from the market
and also used first time in the research. We also say that the information is first
time in the research decision. To collect the primary data questionnaire is prepared
structure non-disguise questionnaire is prepared.

b) Secondary data:-

Secondary data are those data which are already collected by someone for
some purpose and are available for the present study; secondary data are already
collected by the company’s records and other library’s books. When the secondary
data are sufficient, the researcher has to be satisfied with the primary sources of
data. Secondary data can be used as bases for comparison with primary data have
been collected by questionnaire.

d) Data Collection Method

Researcher instruments is the tool by which the researcher can do research


on specific problems or objective. The most popular researcher instrument for
collection data is “Questionnaire” for a particular investigation. It is simple for a
moiled set of questions presented to respondents for their answers. Due to this
flexibility, it is most common instrument used to collect the primary data. During

7
the pre- testing of questionnaire, I seen the reaction of respondents and suggestions
required to make change in research instrument.

The questionnaire contains three types of questions.

 Open-ended question:-
It is helpful in knowing what is uppermost in the mind of the respondents. It
gives complete freedom to the respondent.

 Dichotomous questions :-
It has only two answers in form ‘yes’ or ‘no’, ‘true’ or ‘false’, ‘use’ or ‘do
not use’. So the respondent is offered two or more choice.

 Multiple-choice question:-
In this, the respondent is offered two or more choice.

E) Sampling plan

Sampling is a process of obtaining. The information about the entire


population by examine a part of it .The effectiveness of the research depends on
the sample size selected for the survey purpose.

(A) sample Site:-

The survey was conducted in HYDERABAD CITY.

(B)Sampling Unit:-

It means “Who is to be surveyed”. Here target population is decided and it


is who are interested to purchase “Bike” and sampling frame is developed so that

8
everyone in the target population has known chance of being sampled. So the
survey is conducted particularly in Hyderabad City.

(C)Sample size:-

For the purpose of proper survey, there is need of perfect research


instruments to find out sample size for more accurate result about buying behavior
of bike. The sample size is 100 respondents.

Statically Formula for Sample Size is:-

n=p*q (z/e) 2

Were,

n=Sample Size

p=0.80(probability of satisfied customer)

q=0.20(I-p)

z=1.96(The z (95%) score associated with the degree of Confidence)

e=0.05 (tolerable error)

n= (0.84)*(016)*(1.96/0.05)2

= (0.1344)*(1536.64)

=206.52

Sample Size n=206.52

9
Here, from calculation n=206.52 is found but for the simplicity of the study
n=206.52have taken.

(D)Sampling Method:-

A Stratified random sample is one where the population is divided in to


mutually exhaustive strata or sub-group and then a simple random is selected
within each of strata on age groups, occupation etc. It may be noted that
stratification does not means absence of randomness. I use a simple random
sampling method.

10
Review of LITERATURE

CONCEPTUAL STUDY OF PROMOTION MIX


People no longer buy shoes to keep there feet warm and dry. They buy them
because of the way the shoes make them feel masculine, feminine, rugged,
different, sophisticated, young, glamorous, "in" buying shoes has become an
emotional experience . Our business now is selling excitement rather than shoes. -
Francis C. Rooney

Modern marketing calls for more than developing a good product it attractively
and making it accessible to target customers. Companies must also communicate
with their present and potential customers. Every company is inevitably cast into
the role of communicator and promoter.

What is communicated, however should not be left to change. To communicate


effectively; companies hire advertising agencies to develop effective ads; sales
promotion specialists to design sales incentive programmes and public relations
firms to develop the corporate image. They train their sales people to be friendly
and knowledgeable. For most companies, the question is not whether to
communicate but rather what to say, to whom.

11
Promotion influences demand by communicating product and company message to
the market. A promotion Techniques involves the co-ordination of all
communication efforts aimed at a specific audience; consumer and shareholder.
The most critical promotional question is the proper mix of advertising, personal
selling, sales promotion and publicity. The promotion mix is usually co-ordinated
on a campaign basis, taking the campaign may efforts include a total campaign
with one unified theme. All promotion messages tie in to this theme in one way or
the the, rather than conflicting with it.

ADVERTISING
The word ‘Advertising’ has its origin from a Latin word ‘Adventure’ which means
to turn to. The dictionary meaning of the word is ‘to announce publicity or to give
public concerned to a specific thing which has been announced by the advertiser
publicity in order to inform and influence them with the ideas which the
advertisement carries. In business world the terms in mainly used with reference to
selling the product of the concern.

The advertising, as Jones defines it is "a sort of machine made mass production
method of selling which supplements the voice and personality of the individual
salesman, such as manufacturing the machine supplements the hands of the
craftsman." It is thus a process of buying/sponsor/identified media space or time in
order to promote a product or an idea. From a careful scrutiny of the above
definition, the following points emerge :

Advertising is a paid form and hence commercial in nature. This any sponsored
communication designed to influence buyer behaviour advertising.

12
Advertising is non-personal. Unlike personal selling, advertising is done in a non-
personal manner through intermediaries or media whatever the form of
advertisement (Spoken, written or visual). It is directed at a mass audience and not
directed at the individual as in personal selling.

Advertising promotes idea, goods and services. Although most advertising is


designed to help sell goods, it is being used increasingly to further public interest
goals.

Advertising is identifiable with its sponsoring authority and advertiser. It discloses


or identifies the source of opinions and ideas.

Advertising thus is :

1. Impersonal

2. A communication of ideas.

3. Aimed at mass audience

4. By a paying sponsor.

The two forms of mass communication that are something confused with
advertising are publicity and propaganda. If we eliminate the elements of the
"paying sponsor" (The paid requirement) we would have the element of publicity
left. For publicity is technically speaking, advertisement without payment. In a
similar manner. If we eliminate the requirement of an "identified sponsor", the
resulting communication is propagandistic.

It is important for us to emphasize that advertising may involve the communication


of ideas or goods of service. We are all aware that advertising attempts to sell

13
goods and services. But we may overlook the more important fact that it often sells
ideas. Advertising may persuade with information; it may persuade with emotion:
more frequently, it Endeavour’s to persuade with some mixture of both.

(1) Electronic Media

Advertisers use two types of media to reach target consumers over the airwaves;
radio or T.V.

(A) Radio:

Advertisers using the medium of radio may also be classified as National or Local
advertisers. The radio is a prominent vehicle of advertising in our country and
accounts for a large sum of the total advertising budget.

The radio serves principally local rather than national or large regional markets.
Many small advertisers use the radio. So do some large organizations. When T.V.
became a factor in the advertising scene, some industry observers felt that radio
advertising might become insignificant or even disappear. This has not been so, for
radio operators have responded to the challenge by offering programmes that
features music etc. which appeal to local audience consumers have responded very
favorably to this approach. Moreover TV does not have much coverage in our
country.

(B) Television:

Late in India, a growing class of advertising media has been the TV. In our
country, commercial advertising on TV is severely limited because broadcast

14
timings are only in the evenings. The TV is a unique combination timing of sight
and sound and achieves a deeper impact than the other media do. This is
particularly advantageous for advertisers whose product require demonstration. TV
advertising offers advantage of impact, mass coverage, repetition, flexibility and
prestigious. In our country not everyone has a TV set; therefore it does not reach
everyone. Moreover, in rural India where 76.31% of our population lives. There
are hardly any TV sets, except at the community centers where electricity is
available. Moreover, TV programmes in our country do not offer much selectivity.
The translation is limited, any centers do not have TV towers.

TV appeals to both the senses of sound and of sight. As a result is combines the
two to produce high-impact commercials. Finally, the fact that product or service is
promoted on TV may build a prestigious image of the product and its sponsor. The
pleasure derived from watching TV is at least potentially transferable to the
advertising message delivered through the medium.

(ii) Print Media

The print media carry their massages entirely through the visual mode. These
media consist of newspapers, magazines and direct mail.

(A) Newspaper:

A sizable share of the total advertising budget is spent on advertising in


newspapers. Newspapers in our country virtually reach most of the homes in the
cities. Since newspapers are local, marketers can easily use them to reach
particular markets. This selectivity is easily rigorous. Some are in the twelve-hour
range. From the viewpoint of the advertiser, newspaper offers several advantage,
they are local in content and appeal and provide opportunity for direct

15
communication between a product and its local dealers or distributors. Because
newspapers supply news, they offer an atmosphere of factual information and of
currency that may be favorable for some advertising situations. Advertisers can
reach a very broad audience through newspapers which offer great flexibility. The
advertisers may choose the specific area to be covered and the advertisement can
be placed in newspapers at very short notice as compared with other media.

(B) Magazines:

Magazines are also mean of reaching different market, both original and matinal
and of general and specific interest. An organization may approach national
markets through such publication as Business India, Famina, Sportsweek, India
Today, Business World and Film fare. Some marketers divide their market on the
basis of such variable as age, educational level and interest magazines. Magazines
are divided into those parts that serve business, industrial consumers, ladies, sports
etc. The diversity of magazines is tremendous. Some offer news or together
"General Interest" content to huge audience. Others are highly specialized,
technical or even exotic. In general, magazines offer advertiser the opportunity to
reach highly selective audience.

The primary advantages of magazine advertising are selectivity of market targets


quantity reproduction long life; the prestige associated with some magazines; and
the extra service offered by many publications. The quality of magazines
reproduction is usually high. Consumers sometime keep individual copies for long
period of time; reread them or pass them on to other. Some magazines have
prestige value. The marketer can cover national or large regional markets at a low
cost per contract (per individual reached). Magazines generally offer high-quality
printing of advertisement.
16
(iii) OUTDOOR AND TRANSIT MEDIA
(A) Outdoor Advertising:

Outdoor advertising involves the use of sign and bill-boards, posters or displays
(such as those that appear on a building’s wall) and electric spectacular (large,
illuminated, sometime animated sign and display). The marketers may purchase
billboards on the basis of showings. A showing indicates the percentage of the total
population of a particular geographic area that will be exposed to it during one
month period. The highest showing is 100. Here the number of billboards is would
attract approximately 50% of the local population about 20 times during a month.
Sings are usually smaller than billboards and are erected and maintained by the
marketer rather than by the advertising media.

This form of advertising has the advantage of communication quick and simply
ideas of repetition and of the ability to promote products that are available for
sales. Outdoor advertising is particularly effective in metropolitan and other can
use this medium to bring the products to the attention of consumers or to remaining
them of the product, while they are on shopping trips or area disposed towards
shopping. Advertisers may utilize this medium to economically reach a large mass
of people or small local markets.

(B) Transport Advertising:

Transport advertising appears on the inside or outside of taxis, buses, railways and
other modes of passenger transportation. Marketers may use transit advertisement
to attain high exposure to particular groups consumers on theory way to and from
work and tourists. Repeat exposure is possible for a majority of the people in our
country use public transport basis. Transport advertising is useful in reaching

17
consumers at an advantageous point which they are embarking on a shopping trip.
This medium is a low cost medium.

SALES PROMOTION

According to the American Marketing Association, Sales Promotion consists of


those marketing activities other than personal advertising and publicity that
stimulate consumer purchasing and dealer effectiveness, such as displays shows
and expositions, demonstration and various non-recurrent selling efforts not in the
ordinary routine.

Sales promotion activities are impersonal and usually non-recurring and are
directed at the ultimate consumers, industrial consumers and middlemen. These
activities tend to supplement the advertising and personal selling efforts. Examples
of sales promotion are free product samples, trading stamps, store displays,
premiums, coupons and trade shows. For many organisations, including the
marketers of food, toys and clothing, store displays are an important sales
promotion device. Display exposes the promotion messages to consumers at the
time and place of purchase. Such exposure is especially important for items that
are bought on impulse. Numerous consumers products are purchased in stores that
use self-service selling method's. Marketers of such items need effective display in
order to distinguish their products from those of their rivals.

PUBLICITY

Publicity is a means of promoting the mass market and is similar to advertising,


except that it is free, is found in the editorial portion of news media and pertains to
newsworthy events. The most common type of publicity are news release (also
know as press release), photographs and feature stories. Marketers have less

18
control over the nature of the publicity that their organization and products receive
than they have over their advertising, personal selling and sales promotions
messages. Upon receiving a news release, for instance, the editor or broadcast
station programme director may choose to throw the release in the waste paper
basket, change the hording, or print or broadcast it in the original form. The
disposition of the news release is entirely in the hands of the media and cannot be
dictated by the marketer. Publicity may be negative as well as positive. Some
products and brands have received bad publicity; for example cigarettes, wings,
artificial sweeteners have been branded unsafe or unhealthy in the publicity which
they would rather have done without. Many a companies and trade association
officials attempt to develop favorable working relationships, with the media in
order to minimize bad publicity. They realize that such communications to the
public may have every adverse impact upon the image of the organization.

PERSONAL SELLING

Personal selling consists of persons to communication between the sales persons


and their prospects. Unlike advertising, it involves personal interactions between
the sources and the destination. Advertising aims at grouping the shotgun
approach, while personal selling aims at individuals the right approach. Sales
persons are in the position to tailor their messages according to the unique
characteristics of each prospect. Further, by observing and listening, sales persons
receive immediate feedback on the extent to which their messages are getting
across. If feedback indicates that the message is not getting across, the sales person
may quickly adjust it or the method of its presentation.

Personal selling may be a very intense means of promotion. Consumers can easily
leave the room-during a TV commercial, ignore a store display. The most effective
19
method of promotion probably is to have sales person provided that the
organization has sufficient funds. The most effective method of promotion
probably is to have sales person call upon every target consumers, for many
institutions, especially those that appeal to the mass market, this would be terribly
inefficient. As a result, they employ mass marketing techniques such as
advertising, personal selling is very important in industrial marketing.

PUBLIC RELATIONS

Marketers engage in public relations in order to develop a favorable image of their


organization and products join the eyes of the public. They direct this activity to
parties other than target consumers. These "other" include the public at large
labour unions, the press and environmental groups. Public relations activities
include sponsoring, lobbying and using promotion message to persuade members
of the public to take up a desired position. The term public relations refer to a
firm's communication and relationships with the various sections of the public.
These sections include the organization customers, suppliers, share holders,
employees, the government, the general public and the society in which the
organization operates. Public relations programme may higher be formal or
informal. The critical point is that every organization, whether or not it has a
formalized (organized, programme, should be concerned about its public relations.

ADVERTISING EFFECTIVENESS

Advertising is an art not a science. Effectiveness of which cannot be measured


with a mathematical or empirical formula some advertisers argue that advertising
efforts go to waste, but every advertiser is keenly interested in measuring or in

20
evaluation of ad. Effectiveness. Testing for the effectiveness of ad. Will lead
advertisement testing must be done either before or after the ad has done in the
media. It is of two types, pretesting which is done before the ad. has been launched
and one is referred to as cost testing which is done before the ad. has been
launched and one is referred to as cost testing which is done after launching the
advertising campaign. The basic purpose of advertising effectiveness is to avoid
costly mistakes, to predict the relative strength of alternative strength of alternative
advertising strategies and to increase their efficiency. In measurement of ad.
effectiveness feed back is always useful even if it costs some extra expenditure to
the advertiser.

Sales-Effect:

Communication-effect advertising research helps advertisers assess advertising's


communication effects but reveals little about its sales impact. What sales are
generated by an ad that increases brand awareness by 20% and brand preference by
10%?

Advertising's sales effect is generally harder to measure than its communication


effect. Sales are influenced by many factors besides advertising, such as the
product's features, price, availability and competitors' actions. The fewer or more
controllable these other factors are, the easier it is to measure advertising's effect
on sales. The sales impact is easiest to measure in direct-marketing's effect on
sales. The sales impact is easiest it is to measure in direct-marketing situations and
hardest measure in brand or corporate-image-building advertising.

PROGRESS TESTS

21
These assess the various stages of buyer awareness, preference, buying intention
and the actual purchase in relation to ad. effort. They are called sales effect tests.

Measuring Sales Response to Advertising :

Though increase in sales in the true measure of advertising effectiveness, in reality


it is difficult to measure the increase that is due to a particular advertisement. It is
rather difficult to correlate the response in sales with the advertising programme.
However, a few methods have been discalled in the following paragraphs which
are generally used to measure the sales response to advertising.

The Netapps Method:

The term Netapps has been framed from the term net-ad-produce-purchases. This
method, which has been developed by Daniel Starch and Staff Company, requires
the measurement of both readers and non-readers who purchased and who did not
purchase the brand under investigation. The netapps method is useful in the
relative measurement of the sales-effectiveness of various advertising approaches.
But the method is subject to a high level of false reporting and open to interviewer
bias. Moreover, we have considered advertising influence as the only factor which
results in a purchase. There may be, and often are, other variables which affect
purchases.

Sales Results Tests:

The additional sales generated by the ads are recorded, taking several routes.Past
Sales before the ad and sales after the ad are noted. The difference is attributed to
ad impact.

Controlled Experiment :

22
In experimental market, any one element of marketing mix is changed. It is
compared with the sales of another similar market. The element's presence
observance is a reason for difference in sales. Instead of two markets, the
experiment can be carried on the two groups of consumers. The inventory audit is
dealers inventory before and after the ad is run.

Attitude Tests

This is an indirect measurement of the post-testing effects of ads on attitudes


towards the advertised product or brands. The change in attitude as a result of
advertising is assessed. The assumption is that favorable attitude towards the
product may lead to purchases. Most ads are designed to either reinforce or change
existing attitudes. An attitude is a favourable or unfavourable feeling about a
product.

Advertising Strategy
An advertising strategy is a campaign developed to communicate ideas about
products and services to potential consumers in the hopes of convincing them to
buy those products and services. This strategy, when built in a rational and
intelligent manner, will reflect other business considerations (overall budget, brand
recognition efforts) and objectives (public image enhancement, market share
growth) as well. As Portable MBA in Marketing authors Alexander Hiam and
Charles D. Schewe stated, a business's advertising strategy "determines the
character of the company's public face." Even though a small business has limited
capital and is unable to devote as much money to advertising as a large
corporation, it can still develop a highly effective advertising campaign. The key is

23
creative and flexible planning, based on an in-depth knowledge of the target
consumer and the avenues that can be utilized to reach that consumer.

Today, most advertising strategies focus on achieving three general goals, as the
Small Business Administration indicated in Advertising Your Business: 1) promote
awareness of a business and its product or services; 2) Stimulate sales directly and
"attract competitors' customers"; and 3) establish or modify a business' image. In
other words, advertising seeks to inform, persuade, and remind the consumer. With
these aims in mind, most businesses follow a general process which ties
advertising into the other promotional efforts and overall marketing objectives of
the business.

Stages of Advertising Strategy

As a business begins, one of the major goals of advertising must be to generate


awareness of the business and its products. Once the business' reputation is
established and its products are positioned within the market, the amount of
resources used for advertising will decrease as the consumer develops a kind of
loyalty to the product. Ideally, this established and ever-growing consumer base
will eventually aid the company in its efforts to carry their advertising message out
into the market, both through its purchasing actions and its testimonials on behalf
of the product or service.

Essential to this rather abstract process is the development of a "positioning


statement," as defined by Gerald E. Hills in "Marketing Option and Marketing" in
The Portable MBA in Entrepreneurship: "A 'positioning statement' explains how a
company's product (or service) is differentiated from those of key competitors."
With this statement, the business owner turns intellectual objectives into concrete
24
plans. In addition, this statement acts as the foundation for the development of a
selling proposal, which is composed of the elements that will make up the
advertising message's "copy platform." This platform delineates the images, copy,
and art work that the business owner believes will sell the product.

With these concrete objectives, the following elements of the advertising strategy
need to be considered: target audience, product concept, communication media,
and advertising message. These elements are at the core of an advertising strategy,
and are often referred to as the "creative mix." Again, what most advertisers stress
from the beginning is clear planning and flexibility. And key to these aims is
creativity, and the ability to adapt to new market trends. A rigid advertising
strategy often leads to a loss of market share. Therefore, the core elements of the
advertising strategy need to mix in a way that allows the message to envelope the
target consumer, providing ample opportunity for this consumer to become
acquainted with the advertising message.

TARGET CONSUMER:

The target consumer is a complex combination of persons. It includes the person


who ultimately buys the product, as well as those who decide what product will be
bought (but don't physically buy it), and those who influence product purchases,
such as children, spouse, and friends. In order to identify the target consumer, and
the forces acting upon any purchasing decision, it is important to define three
general criteria in relation to that consumer, as discussed by the Small Business
Administration:

1. Demographics—Age, gender, job, income, ethnicity, and hobbies.

25
2. Behaviors—When considering the consumers' behavior an advertiser needs
to examine the consumers' awareness of the business and its competition, the
type of vendors and services the consumer currently uses, and the types of
appeals that are likely to convince the consumer to give the advertiser's
product or service a chance.
3. Needs and Desires—Here an advertiser must determine the consumer needs
—both in practical terms and in terms of self-image, etc.—and the kind of
pitch/message that will convince the consumer that the advertiser's services
or products can fulfill those needs.

PRODUCT CONCEPT:

The product concept grows out of the guidelines established in the "positioning
statement." How the product is positioned within the market will dictate the kind of
values the product represents, and thus how the target consumer will receive that
product. Therefore, it is important to remember that no product is just itself, but, as
Courtland L. Bovee and William F. Arens stated in Contemporary Advertising, a
"bundle of values" that the consumer needs to be able to identify with. Whether
couched in presentations that emphasize sex, humor, romance, science,
masculinity, or femininity, the consumer must be able to believe in the product's
representation.

COMMUNICATION MEDIA:

The communication media is the means by which the advertising message is


transmitted to the consumer. In addition to marketing objectives and budgetary
restraints, the characteristics of the target consumer need to be considered as an

26
advertiser decides what media to use. The types of media categories from which
advertisers can choose include the following:

• Print—Primarily newspapers (both weekly and daily) and magazines.


• Audio—FM and AM radio.
• Video—Promotional videos, infomercials.
• World Wide Web.
• Direct mail.
• Outdoor advertising—Billboards, advertisements on public transportation
(cabs, buses).

After deciding on the medium that is 1) financially in reach, and 2) most likely to
reach the target audience, an advertiser needs to schedule the broadcasting of that
advertising. The media schedule, as defined by Hills, is "the combination of
specific times (for example, by day, week, and month) when advertisements are
inserted into media vehicles and delivered to target audiences."

ADVERTISING MESSAGE:

An advertising message is guided by the "advertising or copy platform," which is


a combination of the marketing objectives, copy, art, and production values. This
combination is best realized after the target consumer has been analyzed, the
product concept has been established, and the media and vehicles have been
chosen. At this point, the advertising message can be directed at a very concrete
audience to achieve very specific goals. Hiam and Schewe listed three major areas
that an advertiser should consider when endeavoring to develop an effective
"advertising platform":

27
• What are the product's unique features?
• How do consumers evaluate the product? What is likely to persuade them to
purchase the product?
• How do competitors rank in the eyes of the consumer? Are there any
weaknesses in their positions? What are their strengths?

Most business consultants recommend employing an advertising agency to create


the art work and write the copy. However, many small businesses don't have the
up-front capital to hire such an agency, and therefore need to create their own
advertising pieces. When doing this a business owner needs to follow a few
important guidelines.

COPY:

When composing advertising copy it is crucial to remember that the primary aim is
to communicate information about the business and its products and services. The
"selling proposal" can act as a blueprint here, ensuring that the advertising fits the
overall marketing objectives. Many companies utilize a theme or a slogan as the
centerpiece of such efforts, emphasizing major attributes of the business's products
or services in the process. But as Hiam and Schewe caution, while "something
must be used to animate the theme …care must be taken not to lose the underlying
message in the pursuit of memorable advertising."

When writing the copy, direct language (saying exactly what you mean in a
positive, rather than negative manner) has been shown to be the most effective.

28
The theory here is that the less the audience has to interpret, or unravel the
message, the easier the message will be to read, understand, and act upon. As Jerry
Fisher observed in Entrepreneur, "Two-syllable phrases like 'free book,' 'fast help,'
and 'lose weight' are the kind of advertising messages that don't need to be read to
be effective. By that I mean they are so easy for the brain to interpret as a whole
thought that they're 'read' in an eye blink rather than as linear verbiage. So for an
advertiser trying to get attention in a world awash in advertising images, it makes
sense to try this message-in-an-eye-blink route to the public consciousness—be it
for a sales slogan or even a product name."

The copy content needs to be clearly written, following conventional grammatical


guidelines. Of course, effective headings allow the reader to get a sense of the
advertisement's central theme without having to read much of the copy. An
advertisement that has "50% off" in bold black letters is not just easy to read, but it
is also easy to understand.

ART WORK AND LAYOUT:

Small business owners also need to consider the visual rhetoric of the
advertisement, which simply means that the entire advertisement, including blank
space, should have meaning and logic. Most industry experts recommend that
advertisers use short paragraphs, lists, and catchy illustrations and graphics to
break up and supplement the text and make the document both visually inviting
and easy to understand. Remember, an advertisement has to capture the reader's
attention quickly.

ADVERTISING BUDGET:

29
The advertising budget can be written before or after a business owner has
developed the advertising strategy. When to make a budget decision depends on
the importance of advertising and the resources available to the business. If, for
instance, a business knows that they only have a certain amount of money for
advertising then the budget will tend to dictate what advertising is developed and
what the overall marketing objectives will be. On the other hand, if a business has
the resources available, the advertising strategy can be developed to meet
predetermined marketing objectives. For small businesses, it is usually best to put
together an advertising budget early in the advertising process.

The following approaches are the most common methods of developing an


effective budget. All the methods listed are progressive ones that look to perpetuate
growth:

• Percentage of future or past sales


• Competitive approach
• Market share
• All available funds
• The task or objective approach

The easiest approach—and thus the one that is most often used—is the percentage
of future or past sales method. Most industry experts recommend basing spending
on anticipated sales, in order to ensure growth. But for a small business, where
survival may be a bigger concern than growth, basing the advertising budget on
past sales is often a more sensible approach to take.

Methods of Advertising

30
Small business owners can choose from two opposite philosophies when preparing
their advertising strategy. The first of these, sometimes called the push method, is a
stance wherein an advertiser targets retail establishments in order to establish or
broaden a market presence. The second option, sometimes called the pull method,
targets end-users (consumers), who are expected to ask retailers for the product and
thus help "pull" it through the channel of distribution. Of course, many businesses
employ some hybrid of the two when putting together their advertising strategy.

PUSH METHOD:

The aim of the push method is to convince retailers, salespersons, or dealers to


carry and promote the advertiser's product. This relationship is achieved by
offering inducements, such as providing advertising kits to help the retailer sell the
product, offering incentives to carry stock, and developing trade promotions.

PULL METHOD:

The aim of the pull method is to convince the target consumer to try, purchase,
and ultimately repurchase the product. This process is achieved by directly
appealing to the target consumer with coupons, in-store displays, and sweepstakes.

Analyzing Advertising Results

Many small businesses are distressingly lax in taking steps to monitor whether
their advertising efforts are having the desired effect. Instead, they simply throw a

31
campaign out there and hope for the best, relying on a general sense of company
health when determining whether to continue, terminate, or make adjustments to
advertising campaigns. These small business owners do not seem to recognize that
myriad factors can influence a business's fortunes (regional economic straits,
arrival of new competition, seasonal buying fluctuations, etc.). The small business
owner who does not bother to adequately analyze his or her advertising efforts runs
the danger of throwing away a perfectly good advertising strategy (or retaining a
dreadful one) if he or she is unable to determine whether business upturns or
downturns are due to advertising or some other factor.

The only way to know with any accuracy how your advertising strategy is working
is to ask the consumer, the opinions of whom can be gathered in several ways.
Although many of the tracking alternatives are quite specialized, requiring either a
large budget or extensive advertising research expertise, even small businesses can
take steps to measure the effectiveness of their advertising strategies. The direct
response survey is one of the most accurate means of measuring the effectiveness
of a company's advertising for the simple reason that it measures actual responses
to a business's advertisements. Other inexpensive options, such as use of
redeemable coupons, can also prove helpful in determining the effectiveness of an
advertising campaign.

Advertising Agencies

The decision whether or not to use an advertising agency depends both on a


company's advertising strategy and its financial resources. An agency has
professionals who can organize, create, and place advertising so that it will meet
established objectives better than most small businesses can do on their own, but of

32
course the expense associated with soliciting such talent is often prohibitive for
smaller companies. Still, some small- and mid-sized businesses have found that
agencies can be helpful in shaping and monitoring advertising strategies.

Because of their resources and expertise, agencies are useful when a business is
planning a broad advertising campaign that will require a large amount of
resources. An advertising agency can also help track and analyze the effectiveness
of the advertising. Some criteria to consider when choosing an agency include size
of the agency, size of their clients (small companies should avoid allying
themselves with agencies with a large stable of big corporate clients so that they
are not treated as afterthoughts), length of time that the principals have been with
the agency, the agency's general advertising philosophy, and the primary nature of
the agency's accounts (are they familiar with your industry and the challenges
involved in differentiating your company's products or services from others in that
industry?).

Advertising Laws

The Federal Trade Commission (FTC) protects consumers from deceptive or


misleading advertising. Small business owners should be familiar with the
following laws, which pertain to marketing and advertising and are enforced by the
Commission:

• Consumer Product Safety Act—Outlines required safety guidelines and


prohibits the sale of harmful products.
• Child Protection and Toy Safety Act—Prohibits the sale of toys known to be
dangerous.

33
• Fair Packaging and Labeling Act—requires that all packaged products
contain a label disclosing all ingredients.
• Antitrust Laws—Protects trade and commerce from unlawful restraints,
price deception, price fixing, and monopolies.

Many complaints against advertiser’s center on allegedly deceptive advertisements,


so small business consultants urge entrepreneurs and business owners to heed the
following general rules of thumb:

1. Avoid writing ads that make false claims or exaggerate the availability of the
product or the savings the consumer will enjoy.
2. Avoid running out of advertised sale items. If this does happen, businesses
should consider offering "rain-checks" so that the consumer can purchase
the item later at the same reduced price.
3. Avoid calling a product "free" if it has cost closely associated with it. If
there are costs associated with the free item they need to be clearly disclosed
in the ad.

INDUSTRY PROFILE

The Indian automotive industry consists of five segments: commercial vehicles;


multi-utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors.
With 5,822,963 units sold in the domestic market and 453,591 units exported
during the first nine months of FY2005 (9MFY2005), the industry (excluding

34
tractors) marked a growth of 17% over the corresponding previous. The two-
wheeler sales have witnessed a spectacular growth trend since the mid nineties.

Two-wheelers: Market Size & Growth

In terms of volume, 4,613,436 units of two-wheelers were sold in the country in


9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian
industry accounted for around 77.5% of the total vehicles sold in the period
mentioned.

Figure 1
Segmental Growth of the Indian Two Wheeler Industry
(FY1995-2004)

After facing its worst recession during the early 1990s, the industry bounced back
with a 25% increase in volume sales in FY1995. However, the momentum could
not be sustained and sales growth dipped to 20% in FY1996 and further down to
12% in FY1997. The economic slowdown in FY1998 took a heavy toll of two-
wheeler sales, with the year-on-year sales (volume) growth rate declining to 3%
that year. However, sales picked up thereafter mainly on the strength of an increase
in the disposable income of middle-income salaried people (following the

35
implementation of the Fifth Pay Commission's recommendations), higher access to
relatively inexpensive financing, and increasing availability of fuel efficient two-
wheeler models. Nevertheless, this phenomenon proved short-lived and the two-
wheeler sales declined marginally in FY2001. This was followed by a revival in
sales growth for the industry in FY2002. Although, the overall two-wheeler sales
increased in FY2002, the scooter and moped segments faced de-growth. FY2003
also witnessed a healthy growth in overall two-wheeler sales led by higher growth
in motorcycles even as the sales of scooters and mopeds continued to decline.
Healthy growth in two-wheeler sales during FY2004 was led by growth in
motorcycles even as the scooters segment posted healthy growth while the mopeds
continued to decline. Figure 1 presents the variations across various product sub-
segments of the two-wheeler industry between FY1995 and FY2004.

Demand Drivers

The demand for two-wheelers has been influenced by a number of factors over the
past five years. The key demand drivers for the growth of the two-wheeler industry
are as follows:

▪ Inadequate public transportation system, especially in the semi-urban and rural


areas;
▪ Increased availability of cheap consumer financing in the past 3-4 years;
▪ Increasing availability of fuel-efficient and low-maintenance models;
▪ Increasing urbanisation, which creates a need for personal transportation;
▪ Changes in the demographic profile;
▪ Difference between two-wheeler and passenger car prices, which makes two-
wheelers the entry level vehicle;

36
▪ Steady increase in per capita income over the past five years; and
▪ Increasing number of models with different features to satisfy diverse consumer
needs.

While the demand drivers listed here operate at the broad level, segmental demand
is influenced by segment-specific factors.

MARKET CHARACTERISTICS
Demand
Segmental Classification and Characteristics
The three main product segments in the two-wheeler category are scooters,
motorcycles and mopeds. However, in response to evolving demographics and
various other factors, other subsegments emerged, viz. scooterettes, gearless
scooters, and 4-stroke scooters. While the first two emerged as a response to
demographic changes, the introduction of 4-stroke scooters has followed the
imposition of stringent pollution control norms in the early 2000. Besides, these
prominent sub-segments, product groups within these sub-segments have gained
importance in the recent years. Examples include 125cc motorcycles, 100-125 cc
gearless scooters, etc. The characteristics of each of the three broad segments are
discussed in Table 1.

Table 1
Two-Wheelers: Comparative Characteristics
Scooter Motorcycle Moped

37
Price*(Rs. as in
> 22,000 > 30,000 > 12,000
January 2005)
2-stroke, 4- Mainly 4-
Stroke 2-stroke
stroke stroke
Engine Capacity (cc) 90-150 100, 125, > 125 50, 60
Ignition Kick/Electronic Kick/Electronic Kick/Electronic
Engine Power (bhp) 6.5-9 7-8 and above 2-3
Weight (kg) 90-100 > 100 60-70
Fuel Efficiency (kms
50-75 50-80+ 70-80
per litre)
Load Carrying High Highest Low

Segmental Market Share

The Indian two-wheeler industry has undergone a significant change over the past
10 years with the preference changing from scooters and mopeds to motorcycles.
The scooters segment was the largest till FY1998, accounting for around 42% of
the two-wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of
the market respectively, that year). However, the motorcycles segment that had
witnessed high growth (since FY1994) became larger than the scooter segment in
terms of market share for the first time in FY1999. Between FY1996 and
9MFY2005, the motorcycles segment more than doubled its share of the two-
wheeler industry to 79% even as the market shares of scooters and mopeds stood
lower at 16% and 5%, respectively.

Figure 2
Trends in Segmental Share in Industry Sales (FY1996-

38
9MFY2005)

While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported
a healthy growth of 20%, indicating a clear shift in consumer preference. This
shift, which continues, has been prompted by two major factors: change in the
country's demographic profile, and technological advancements.
Over the past 10-15 years the demographic profile of the typical two-wheeler
customer has changed. The customer is likely to be salaried and in the first job.
With a younger audience, the attributes that are sought of a two-wheeler have also
changed. Following the opening up of the economy and the increasing exposure
levels of this new target audience, power and styling are now as important as
comfort and utility.

The marketing pitch of scooters has typically emphasised reliability, price, comfort
and utility across various applications. Motorcycles, on the other hand, have been
traditionally positioned as vehicles of power and style, which are rugged and more
durable. These features have now been complemented by the availability of new
designs and technological innovations. Moreover, higher mileage offered by the
executive and entry-level models has also attracted interest of two-wheeler

39
customer. Given this market positioning of scooters and motorcycles, it is not
surprising that the new set of customers has preferred motorcycles to scooters.
With better ground clearance, larger wheels and better suspension offered by
motorcycles, they are well positioned to capture the rising demand in rural areas
where these characteristics matter most.
Scooters are perceived to be family vehicles, which offer more functional value
such as broader seat, bigger storage space and easier ride. However, with the
second-hand car market developing, a preference for used cars to new two-
wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few
years have witnessed a shift in preference towards gearless scooters (that are
popular among women) within the scooters segment. Motorcycles, offer higher
fuel efficiency, greater acceleration and more environment-friendliness. Given the
declining difference in prices of scooters and motorcycles in the past few years, the
preference has shifted towards motorcycles. Besides a change in demographic
profile, technology and reduction in the price difference between motorcycles and
scooters, another factor that has weighed in favour of motorcycles is the high re-
sale value they offer. Thus, the customer is willing to pay an up-front premium
while purchasing a motorcycle in exchange for lower maintenance and a relatively
higher resale value.

Supply
Manufacturers
As the following graph indicates, the Indian two-wheeler industry is highly
concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd
(Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of
the industry sales as in 9MFY2005. The other key players in the two-wheeler

40
industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd
(KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd
(Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India
(P) Ltd (HMSI).

Figure 3
Shares of Two-Wheeler Manufacturers in Industry Sales
(FY2000-9MFY2005)

Although the three players have dominated the market for a relative long period of
time, their individual market shares have undergone a major change. Bajaj Auto
was the undisputed market leader till FY2000, accounting for 32% of the two-
wheeler industry volumes in the country that year. Bajaj Auto dominance arose
from its complete hold over the scooter market. However, as the demand started
shifting towards motorcycles, the company witnessed a gradual erosion of its
market share. HHML, which had concentrated on the motorcycle segment, was the
main beneficiary, and almost doubled its market share from 20% in FY2000 to
40% in 9MFY2005 to emerge as the market leader. TVS, on the other hand,
witnessed an overall decline in market share from 22% in FY2000 to 18% in
9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis

41
till FY2003 as it changed its product mix but has declined since then.

Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly
through: licensing and technical collaboration (as in the case of Bajaj Auto and
LML); and joint ventures (HHML).

A third form - that is, the 100% owned subsidiary route - found favour in the early
2000s. A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2
details the alliances of some major two-wheeler manufacturers in India.

Besides the below mentioned technology alliances, Suzuki Motor Corporation has
also followed the strategy of joint ventures (SMC reportedly acquired equity stake
in Integra Overseas Limited for manufacturing and marketing Suzuki motorcycles
in India).

Table 2
Technological tie-ups of Select Players
Nature of Alliance Company Product
Bajaj Technological tie- Kawasaki Heavy Motorcycles

42
Auto up Industries Ltd, Japan
Technological tie- Tokya R&D Co Ltd, Two-wheelers
up Japan
Technological tie- Kubota Corp, Japan Diesel
up Engines
HHML Joint Venture Honda Motor Co, Japan Motorcycles
KEL Technological tie- Hyosung Motors & Motorcycles
up Machinery Inc
KEL Tie up for Italjet, Italy Scooters
manufacturing
and distribution
LML Technological tie-up Daelim Motor Co Ltd Motorcycles
Hero Technological tie-up Aprilia of Italy Scooters
Motors
Compiled by INGRES

With the two-wheeler market, especially the motorcycle market, becoming


extremely competitive and the life cycle of products getting shorter, the ability to
offer new models to meet fast changing customer preferences has become
imperative. In this context, the ability to deliver newer products calls for sound
technological backing and this has become one of the critical differentiating factor
among companies in the domestic market. Thus, the players have increased their
focus on research and development with some having indigenously developed new
models as well as improved technologies to cater to the domestic market. Further,
with exports being one of the thrust areas for some Indian two-wheeler companies,
the Indian original equipment manufacturers (OEMs) have realised the need to
upgrade their technical capabilities. These relate to three main areas: fuel economy,
environmental compliance, and performance. In India, because of the cost-
sensitive nature of the market, fuel efficiency had been an interest area for

43
manufacturers.

It is not only that the OEMs are increasing their focus on in-house R&D, they also
provide support to the vendors to upgrade the technology and also assist them
striking technological alliances.

COMPANY PROFILE
44
About Mahindra & Mahindra
Group Overview:
Mahindra embarked on its journey in 1945 by assembling the Willys Jeep
in India and is now a US $6.3 billion Indian multinational. It employs over
1,00,000 people across the globe and enjoys a leadership position in utility
vehicles, tractors and information technology, with a significant and growing
presence in financial services, tourism, infrastructure development, trade and
logistics. The Mahindra Group today is an embodiment of global excellence and
enjoys a strong corporate brand image.

Mahindra is the only Indian company among the top tractor brands in the world
and has made an entry in the two-wheeler segment, which will see the company
emerge as a full-range player with a presence in almost every segment of the
automobile industry.

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the
leading global business and information technology services company, Satyam
Computer Services. The company is now known as Mahindra Satyam.

Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality
Medal, the only tractor company worldwide to be bestowed this honour. It also
holds the distinction of being the only tractor company worldwide to win the
Deming Prize. The US based Reputation Institute recently ranked Mahindra among
the top 10 Indian companies in its Global 200: The World's Best Corporate
Reputations list.

45
Mahindra is also one of the few Indian companies to receive an A+ GRI checked
rating for its first Sustainability Report for the year 2007-08.

Business divisions:
Automotive sector:
The Mahindra Group’s Automotive Sector is in the business of manufacturing and
marketing utility vehicles and light commercial vehicles, including three-wheelers.
It is the market leader in utility vehicles in India since inception, and currently
accounts for about half of India’s market for utility vehicles.

Although created in 1994 following an organizational restructuring, the


Automotive Sector can trace its antecedents back to 1954. The iconic Jeep that led
American G.I.s to victory in World War II is the very same vehicle that drove the
Mahindra Group to success inthe Automotive Sector. Mahindra & Mahindra
Limited, the flagship company of the Group, was set up as a franchise for
assembling general purpose utility vehicles from Willys, USA.

Over the years, the Group has developed a large product portfolio catering to a
diverse customer base spanning rural and semi-urban customers, defense
requirements and luxurious urban utility vehicles. In 2002, it launched the
indigenously engineered world-class sports utility vehicle-Scorpio, which bridges
the gap between style and adventure, luxury and ruggedness, and performance and
economy.

The Group exports its products to several countries in Europe, Africa, South
America, South Asia and the Middle East.

46
The Automotive Sector continues to be a leader in the utility vehicle segment with
a diverse portfolio that includes mass transport as well as new generation vehicles
like Scorpio, Bolero and the recently launched Xylo.

Mahindra & Mahindra’s foray into the three wheeler segment with Alpha and
Champion has also made it a leader in its category.

The International Operations of the Automotive Sector focuses on the international


business.

Mahindra Renault (MRPL) announced the launch of Logan, India’s first wide body
car, sporting a host of class-defying features at an aggressive price. The Logan
redefines its segment in terms of spaciousness as well as performance, technology
with the latest generation dci common rail engine. It has been designed for the
Indian market incorporating a contemporary styling and design.

Mahindra Navistar Automotives Ltd. (MNAL), a joint venture between Mahindra


& Mahindra Limited and International Truck and Engine Corporation, will
manufacture trucks and buses for India and export markets. It will also provide
component sourcing and engineering services to International Truck and Engine
Corporation.

Mahindra Navistar (MNEPL) a second joint venture agreement with Mahindra &
Mahindra, Ltd. focuses on producing diesel engines for Medium and heavy

47
Commercial vehicles in India. Beginning in 2009, MNEPL’s advanced diesel
engines will power the full line of trucks and buses produced by MNAL.
Farm equipment sector:
Farm Equipment Sector (FES) is a part of US $6.3 billion Mahindra group, which
is amongst the top 10 industrial houses in India. The group has a leading presence
in key sectors of the Indian economy, including the financial services, trade, retail
and logistics, automotive components, after-market, information technology and
infrastructure development. Mahindra has recently made an entry in the two-
wheeler segment.

The Mahindra group's Farm Equipment Sector (FES) is amongst the top three
tractor brands in the world. It has won the Japan Quality Medal in 2007. It also
holds the distinction of being the first tractor company globally to win the Deming
Application Prize in 2003. FES is the first tractor company worldwide to win these
honors. This shows the strong focus of FES on Quality and Customer Satisfaction.
Today, the domestic market share of FES is around 42%. (Mahindra brand: 30%
and Swaraj brand: 12%).

The motto of FES is to usher prosperity; for its customers, dealers, employees,
society and all other stakeholders.FES has 6 state-of-the-art manufacturing plants
(including 2 plants of Swaraj) in India, 2 plants in China, 3 assembly plants in
USA and 1 assembly plant in Australia. FES has its presence in around 25
countries across six continents with more than 1000 dealers world-wide.

FES has a subsidiary agricultural tractor manufacturing company in India known


as Mahindra Gujarat Tractor Limited (MGTL).

48
Mahindra Group has commenced the Sustainability Reporting from 2008. Today,
M&M group is amongst the few Indian companies to have an A+ GRI
certification. As per the commitments given by the Group under GRI framework,
significant reduction in usage of electricity, water and solid waste is called for. To
make FES employees aware on the tenants of sustainability, various initiatives like
easily accessible information on sustainability, setting up of permanent
sustainability corners in all FES plants, observing of energy conservation month
etc. are undertaken.

FES has a Sustainability Committee in place to take care of the implementation of


GRI requirements.

Financial services sector:


Finance is a major impetus for the growth of automotive products and this led to
the Group’s foray into financial services through Mahindra Finance and its
subsidiary. Together, a cluster of these companies forms the Trade and Financial
Services Sector of the Mahindra Group.

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of 's
leading non-banking finance companies focused on providing finance for utility
vehicles, tractors and cars in the rural and semi-urban sector. Mahindra Finance
currently has the largest network of over 436 branches. It has entered into more
than 600,000 customer contracts and has disbursements of around Rs. 21000crore
since inception.

Mahindra Insurance Brokers, a wholly owned subsidiary of Mahindra Finance,


is one of the few insurance broking companies in to receive the ISO 9001:2000

49
Certification for Quality Management Systems. It provides direct insurance
broking for retail and corporate customers with a wide and comprehensive range of
plans for Life and Non-life Insurance segments. Under the Non-life Insurance
category, Personal, Industrial, Commercial, Social and Liability products are
available.

Mahindra Rural Housing Finance Ltd (MRHFL) is a wholly owned subsidiary


of Mahindra & Mahindra Financial Services (MMFSL). It has been recently set up
with an objective of meeting the housing finance needs of the rural/semi urban
customers across the country.

Systech sector:

Systech* is a fully integrated 'Art to Part' automotive component supplier. It was


established in 2004 in response to the growing competitiveness in the automotive
industry. With a complete array of services, Systech intends to create India's most
valuable and innovative auto component business that partners global customers in
their business needs. It already has a diverse portfolio of domestic and international
firms as its clients, like Tata Motors in India and GM and Ford in the US
Systech consists of various businesses, which together have ensured that clients
get a full service supply, from design to delivery.

Mahindra Engineering is a full service provider of design and engineering


services. It offers enhanced design, CAD and CAE services to the automotive
domain, aerospace and general engineering.

Mahindra Sourcing* primarily focuses on vendor management and product


development for global OEMs.

50
In addition, Systech has several companies that produce forgings, gears, steel,
stampings and special polymers.

Information Technology:
The Mahindra Group's foray into Information Technology dates back to 1986 when
the flagship company of the Sector, Mahindra-British Telecom (MBT), was
formed as a joint venture with British Telecommunications plc (BT). In 2006,
MBT’s name was changed to TechMahindra Ltd. and the company made a hugely
successful public issue in August, 2006.Tech Mahindra – which specializes in
solutions for communications industry – is the largest telecom-focused system
integration and IT solutions company from India. Tech Mahindra has been ranked
in the Leaders Category in ‘The 2009 Global Outsourcing 100’ (IAOP’s Annual
Listing of the World’s Best Outsourcing Service Providers).

Tech Mahindra is the chosen transformation partner for wire line, wireless and
broadband operators around the world.

Bristlecone is recognized by industry analysts as a leader in helping clients


maximize the strategic value of their supply chains. It provides a range of services
focused on the entire supply chain spectrum, including strategy and process
consulting, systems implementation and business process outsourcing, to leading
companies globally.

Mahindra Satyam is a leading global business and information technology services


company that leverages deep industry and functional expertise, leading technology
practices, and an advanced, global delivery model to help clients transform their
highest-value business processes and improve their business performance.
51
Two wheeler sector:
The Mahindra Group's foray into the two-wheeler segment began with the
acquisition of the business assets of Kinetic Motor Company Ltd. (KMCL)
extending Mahindra's heritage and pedigree into the two wheeler space. The Two
Wheeler Sector of Mahindra will design and market a full range of scooters and
motorcycles for the Indian and global markets. Thus, establishing a robust and end-
to-end two-wheeler business in every segment of the industry. The company has a
state-of-the-art manufacturing facility at Pithampur, near Indore in Madhya
Pradesh. The plant, products and processes are ISO 9001 certified from DNV.

Mahindra & Mahindra's stringent quality standards, which are a part of its
consumer centric approach, will be reflected in all its products. The company uses
the design and engineering services of its affiliates including the Italy based
Engines Engineering. This ensures product development work that delivers
technologically superior products with latest styling to its valued costumers.
Engines Engineering offers specialized services in the area of motorcycle &
scooter design and development. Some of the names associated with Engines
Engineering include Ferrari, Ducati, Honda, and Yamaha. The motorcycles
developed by Engines Engineering have indeed made a mark in the Moto GP
Circles.

Mahindra also has a partnership with Taiwan's Sanyang Industry Company


Limited (SYM). A US $ 1 billion automobile giant, SYM is a leading manufacturer
of two-wheelers, including scooters, motorcycles and ATVs. SYM has a complete,
advanced research and design facility that develops products from concept upto

52
production. The association with SYM translates into cutting edge technology and
best products from Mahindra.

Backed by the Mahindra Group’s strong R&D support, Mahindra Two Wheelers
plans to market a range of scooters, value engineered motorcycles and high-end
motorcycles for the Indian and global markets. Within the overall two-wheeler
strategy for Mahindra Two Wheelers the product profile will range from top end
motorcycles to entry level bikes. The range will also have a variety of scooters
fulfilling different needs. In keeping with this strategy, Mahindra introduced the
Flyte as its first two-wheeler offering across all markets in India in April 2009

On 10th Sept 2009, Mahindra Two Wheelers Ltd. unveiled two new Power
Scooters - the Mahindra Rodeo and the Mahindra Duro. With their contemporary
styling and attractive features, these Power Scooters come packed with a host of
features which make riding them a sheer pleasure.

Mahindra Rodeo

The perfect choice for the young urban male, the Mahindra Rodeo is a high
performance, feature-packed scooter with a distinctly macho demeanour

A robust 125 cc engine offers 8.0 bhp of power, making it one of the most
powerful vehicles in its class. Excellent pick up and smooth acceleration ensures
agility even in dense traffic and low maintenance costs.

Telescopic suspension ensures you can ride the Rodeo in comfort on the roughest
of roads, while specially designed brakes allow smooth and effective braking for a
safe ride. A bigger 7AH battery permits easy starting and implies less maintenance.

53
A colour changing digital console incorporates various car like features including a
trip meter, clock, tachometer, digital speedometer and odometer, allowing the rider
to see important data at a mere glance. Horn rimmed headlights add to the
vehicle’s stylish appearance, while ensuring greater visibility. A USB port cum
mobile charger keeps you entertained and connected even on the move. The mirror
is adjustable and non-breakable and moves inward in case of impact, resulting in
almost no breakage. A unique ‘side stand buzzer’ reminds the rider that the side
stand is still on, avoiding any imbalance or undue damage to the vehicle.

The Mahindra Rodeo offers the ultimate in comfort, convenience and safety. A
specially designed petrol tank inlet in front allows the driver to refuel without
having to alight from the scooter. This peppy two wheeler also boasts of the largest
illuminated storage space in its category, which allows you to even store food and
perishable items as the petrol tank is not located inside.

Ergonomically designed seats ensure a comfortable journey for both the driver and
the pillion rider. A 4-in-1 key system starts the engine, operates the fuel lock,
handle lock and a magnetic shutter which provides additional safety against theft.

This testosterone packed two wheeler sports aerodynamic, sleek contours with
attractive body graphics and is available in seven sophisticated shades usually
found on high end sedans – Fiery Black, Forest Green, Cappuccino Brown,
Blazing Red, Golden Beige, Majestic Maroon and Deep Ocean Blue.

Mahindra Flyte

In 2009, Mahindra kick-started its two-wheeler foray with the introduction of the
Flyte as its first product offering across India. With its innovative features backed

54
with power-packed performance and contemporary styling, Flyte is an ideal
product offering for its target audience - the Youth.

Flyte is powered with a 125 cc engine and boasts of cool features like Front
fuelling, 4-in-1 key, largest storage space and telescopic suspension to make it a
comfortable, convenient and smooth ride. To add to this, body coloured impact
resistant mirrors and vibrant colours for its TG add to the products overall appeal.

Mahindra Duro

Mahindra Duro is the award winning scooter that lets you enjoy and explore your
freedom in every possible manner. Be it design, speed, handling, storage space; the
new Mahindra Duro has it all. You don’t just own a Mahindra Duro, you possess
it. Not to mention the other possessions which come along with it: Power,
smartness, freedom and sensibility! That's what this Mahindra Power Scooter
stands for.
It is packed with many conveniences packed features like one of the largest fuel
tank you will find in any scooter. That means less refueling and more riding. And
when all you want is everything, there’s enough under seat space to store all that
you shop for household chores, along with two lights to make sure you find all that
you need easily.
In today’s constantly overcrowding cities, there’s one place you don’t need to be
crammed in: the Mahindra Duro. With the Xtra leg room, the only thing that’d
need a stretch would be the road. And yes, even your friend riding pillion will
never complain, because with Mahindra Duro, nobody needs to be crammed.
When traffic is flying, you needn’t follow. With a 125cc engine coupled with a 4
stroke engine you can kiss passer-bys goodbye with a gentle turn of the wrist as

55
you accelerate backed with the power build-up. Go ahead, stay ahed and show
them the way.
Move up the style ladder, with the sturdy look and admirable fit finish of Mahindra
Duro. Born out of EUROSTYLING, the Duro comes in a wide array of colours:
from sexy maroon to elegant black all the way from gray, red, golden, light blue
and light green. Go ahead! Paint the town red or any color of your choice.
Mahindra Kine:

Kine, the all-new scooter, are Mahindra's latest offering, one that lets you zoom
around town as you leave the world behind. Its ergonomic styling, funky colours
and a power-packed performance impress you and every pedestrian you flash past.
With a 71.5 cc engine, a spacious storage area, and a comfortable seat, Kine is
designed to be your perfect companion on every journey.

It has everything to make your journey a safe one. With a spacious storage room,
you can carry not just your helmet and kit bag, but your dreams and your world.
Comfortable and convenient seating to ensure that frequent commuting is nothing
but pure fun; for you and those with you. A spacious foot-board ensures your legs
never feel cramped and tired, however long the journey.

The stylish Mahindra Kine has a youthful appeal with its Fresh Body Graphics that
match your persona. Every Kine scooter comes with a body-coloured grab rail that
provides maximum safety to your pillion rider while also upping the style quotient.

Snapshot:

Date of Establishment 1945

Revenue 2905.42 ( USD in Millions )

56
Market Cap 295435.4096385 ( Rs. in Millions )

Corporate Address Gateway Building,Apollo


Bunder,Mumbai-400001, Maharashtra
www.mahindra.com
Management Details Chairperson-Keshub Mahindra
MD - Anand G Mahindra
Directors - A K Nanda, A S Ganguly,
Anand G Mahindra, Anupam Puri, Arun
Kanti Dasgupta, Bharat Doshi, Deepak S
Parekh, Keshub Mahindra, M M
Murugappan, Nadir B Godrej, Narayan
Shankar, Narayanan Vaghul, R K
Kulkarni
Business Operation Automobiles-Tractors

Background Mahindra & Mahindra was established


on October 2, 1945 when K.C. Mahindra
visited the United States of America as
Chairman of the India Supply Mission.
He met Barney Roos, inventor of the
rugged 'general purpose vehicle' or Jeep
and had a flash of inspiration: wouldn't a
vehicle that had proved its invincibility
on the battlefields of World War II be
ideal for India's rugged terrain and its
kutcha rura
Financials Total Income - Rs. 134544.5 Million
( year ending Mar 2009)
Net Profit - Rs. 8367.8 Million ( year
ending Mar 2009)
BankersAuditors Deloittee Haskins & Sells

Achievements/ recognition:-

57
2010

• Roma Balwani has been honoured in Delhi on April 3, 2010 with the
prestigious Hall of Fame 2010 award by the Public relations Society of India
(PRCI). PRCI is the National body of Communication, Advertising, Media,
academics & PR professionals in the country. Apart from providing a common
platform to enrich professional development, PRCI is also involved in the field
of PR Education & accreditation to PR professionals.

• The Mahindra Group has won the following awards from Public relations
Society of India (PRCI), the National body of Communication, Advertising,
Media, academics & PR professionals in the country. Overall performance for
the Year – Silver, Online Newsletter - Mahindra Spectrum – Gold, External
Magazine - Refresh – Silver, Tabloid - Inside Information – Bronze, Table
Calendar - Mahindra Navistar – Bronze, Diary 2010 - Mahindra Navistar –
Appreciation, Multimedia Campaign - Sustainability Campaign – Silver,
Corporate Advertisement - Mahindra Navistar – Bronze. The awards were
presented in New Delhi on April 3, 2010.

• Anand Mahindra was honoured with the Business Man of the Year Award by
NDTV at a star studded ceremony in New Delhi on February 24, 2010. The
awards honour outstanding Indians who helped build Brand India through
excellence in their fields.

• Mr. Anand Mahindra was named the Ernst & Young Entrepreneur Of The
Year 2009 at a function in Mumbai on February 16, 2010. “We have honoured
Mahindra for taking his business to the next level, creating a visible impact

58
both in local and global markets, and for the sheer value his businesses have
provided to all stakeholders,” said a statement from Ernst & Young.
“Mahindra and his entrepreneurial vision have truly set a higher benchmark for
the Made in India brand, and hence we have honoured him with the award.”

• Mr. Arun Nanda has been honoured with the Lifetime Achievement Award at
the ‘Golden Star Awards 2010’ ceremony in the category ‘Food, Hospitality &
Services’ on February 10, 2010. This award recognises people/organizations
for the quality of service and excellence in the Food, Hospitality, Services &
Retailing sector in India today. The award salutes professionals who have
made a significant difference to their organizations.

• Mr. Rajeev Dubey has been awarded the 1st Late Jagdeep Khandpur Award
for Outstanding HR Leadership at the Global HR Excellence Awards 2009 –
10 at the World HRD Congress, held in Mumbai on February 10, 2010. This is
the first year that the Award has been instituted, and the criteria for the Award
included "Trust, Integrity and Credibility", which are important pillars of the
Mahindra culture and heritage.

• Mr. Arun Nanda, Executive Director, Mahindra & Mahindra was honoured
with the CA Business Achiever Award in the category – Corporate at the ICAI
Award 2009 ceremony held in Mumbai on January 21, 2010 at Mumbai. The
award acknowledges Chartered Accountants who have demonstrated
excellence in the way in which they conduct their profession, are exemplary
role models in the industry and who have created value to their company's
stakeholders on a sustainable basis.

• Farm Equipment Sector was awarded the prestigious ‘Golden Peacock

59
Innovative Product / Service Award - 2010’ for YUVRAJ 215, the first of its
kind in the Indian tractor industry. The award was conferred by Shri Salman
Khurshid, Honourable Minister for Corporate Affairs, at a specially organized
gala awards night on January 16, 2010 in the presence of eminent business and
political leaders of the country.

• Mahindra Xylo was conferred the ‘UV of the year’ award from CNBC TV18
Overdrive awards on January 5, 2010. Mahindra XYLO is perhaps India’s first
Sedan Plus vehicle that offers the ultimate combination of luxury and power.

• Mahindra Duro was awarded the Best Scooter of the year by NDTV Car &
Bike awards on January 7, 2010. The Duro, with its stylish good looks and
powerful engine offers the best value for money product in its category.

• Mahindra Xylo was decorated as MPV of the Year by NDTV Car & Bike
awards on January 7, 2010.

• M&M received the Auto Bild India Golden Steering Wheel for Technology of
the Year for its path-breaking FuelSmart system with Micro Hybrid
technology on January 2, 2010. This technological innovation developed by
the Mahindra Research & Development team with the support of M/S
BOSCH, is not only environment friendly but also fuel efficient and very
affordable

2009:

60
• Golden Peacock Award for Occupational Health & Safety - 2009
• Mahindra FES won gold as the Best New Tractor in the Lower Horse Power
Category (upto 70 Hp) at the 76th International Novisad Fair.
• On May 14, 2009, Mahindra & Mahindra was awarded the prestigious 21st
CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar 2008,
• On April 29, 2009, Club Mahindra Snow peaks Resort, Manali was awarded
as the Best Socially Responsible Resort at Manali.
• The Scorpio receive the Best Off roader vehicle of the year 2009 award and
the Start-stop technology received the Environment Initiative of the year
2009 award from Carwale.com on April 29, 2009.

2008:

• Mahindra & Mahindra was awarded the Niryat Shree Bronze Trophy by
FIEO.
• Mahindra Farm Equipment Sector (FES) with their partner RC&M (a
leading experimental marketing solution provider) bagged two golds at the
second edition of the Rural Marketing Association of India (RMAI) awards
2008.
• Mahindra and Mahindra Limited has been conferred with the CSIR
Diamond Jubilee Technology Award 2007.
• Mahindra & Mahindra Ltd. received the prestigious ICSI National Award
for Excellence in Corporate Governance for the year 2008.
• Zaheerabad plant has bagged the 1st prize in National Energy Conservation
Award – 2008.

Shares:

61
Price Information as on 16-04-2010

Open 511.00
High 513.75
Low 500.00
Last Price 500.50
Prev. Close 510.80
Close Price 502.85
Change -10.30
% Change -2.02
VWAP 507.45
Total traded quantity 2342006
Turnover in Rs.Lakhs 11884.51

Corporate Governance:
62
Mahindra & Mahindra limited firmly believes in the principles of
Corporate Governance and is commited to conduct its business in a manner, which
will ensure sustainable, capital-efficient and long term growth thereby maximizing
value for its shareholders, customers, employees and society at large. Company’s
policies are in line with Corporate Governance guidelines prescribed under listing
agreements with stock exchanges and the company ensures that various disclosures
requirements are complied in ‘letter and spirit’ for effective Corporate
Governance.

The companies shareholders are aware that the Mahindra Companies have
been associated with good governance even before corporates were faced with
legislation and a set of regulations. The Company has formally enunciated its own
governance practices by way of a Code of Corporate Governance. This Code seeks
to serve as a reminder of the underlying principles governing the conduct of our
businesses. They are a reiteration of the fundamental precept that good Corporate
Governance must, and will, always be an integral part of the fabric that makes up
the ethos.

63
Media selection by Mahindra two
wheelers
Advertising media:

Advertising can be accomplished through many types of media including

newspapers, radio, magazines, television, direct mail, point of sale, outdoor

(signage and bill boards) and the internet. The media type used by the target

audience to learn about products and services and to make purchasing decisions

need to be consistent with the advertising media chose. It is also important to

consider the advantages and disadvantages of each media type. Once the type of

media is chosen, the specific media outlet, such as the specific newspaper or radio

station, must be selected. Consider the geographic reach of the publication or

station and demographics of the readers or listeners to determine if they match the

target audience of the product or service being advertised. The placement or timing

of the advertising is also an important factor to determine. When is the target

audience likely to tune into a radio or television station? Which section of the

newspaper or magazine is the target audience likely to read?

64
Print media:

• News papers

• Magazines

• Hoardings

• Brochures

• Bill boards

Electronic media:

• Television

• Radio

• Online advertising

• Electronic hoardings

• Mobile advertising

• Call centers

65
Indoor media:

• Shopping complex

• Multiplex

• Retail outlets

• Others

Promotions:

• Television programs

• Events and promotions

• Corporate parties and round table conferences

Point of sale:

Print media:

News paper

A newspaper is a written publication containing news, information and

advertising, usually printed on low-cost paper called newsprint. General-interest

newspapers often feature articles on political events, crime, business,

66
art/entertainment, society and sports. Most traditional papers also features an

editorial page containing columns which express the personal opinion of writers.

Supplementary sections may contain advertising, comics, coupons, and other

printed media. News papers are most often published on a daily weekly basis, and

they usually focus on the particular geographical area where most of their readers

live. Despite recent setbacks in circulation and profits newspapers are still the most

iconic outlet for news and other types of written journalism.

Most newspapers make a majority of their income from advertising; the

income from the costumer’s payment at the news-stand is small in comparison.

The portion of the newspaper that is advertising is called editorial content, editorial

matter, or simply editorial, although the last term is also used to refer specially to

those articles in which the newspaper and its guest writers express their opinions.

In recent years, the advertorial emerged. Advertorials are most commonly

recognized as an opposite editorial which third parties pay a fee to have included in

the paper. Advertorials commonly advertise new products or techniques, such as a

new design for golf equipment, a new form of laser surgery, or weight-loss drugs.

The tone is usually closer to that of a press release than of an objective news story.

67
Mahindra two wheelers have been giving various attention getting slogans and

ad designers to attract the readers of the newspaper, it has understood the power

and reach of the newspaper in India.

Hoardings:

Hoardings are the oldest form of outdoor print media advertising generally it

is put at high levels on roads for proper visibility. Hoardings play a vital role in

informating the product to not only the but rural areas to

Mahindra two wheelers have allocated the Hoardings at different areas in

Hyderabad.

Brochures:

Fancy booklet that differ from an ordinary booklet in that it is constructed of

heavier quality paper, uses extensive colour and expensive type, and is generally

put together with special care. The name originates from the French verb brochure,

meaning “to stitch”, indicating a booklet bound by stiching, although today other

binding methods are also used. Brochures are frequently part of a retail advertising

campaign and are sometimes distributed with the Sunday papers. They are also

enclosed in direct mail and considered to be the “work horse” of the direct-mail

package.

68
Electronic Media:

Television

A television advertisement, advert or commercial is a form of advertising in


which goods, services, organizations, thought, etc, are promoted via the medium of
television. Most commercials are produced by an outside advertising agency and
airtime is purchased from a media agency or direct from the TV channel or
network.

The first television advertisement was broadcast in the USA at 14:29 on July
1, 1941, when the Bulova watch company paid $9 to New York city NBC affiliate
WNBT (now WNBC) for a 20-second spot aired before a baseball game between
the Brooklyn Dodgers and Philadelphia Phillies. It simply displayed a Bulova
watch over a map of the U.S., with a voiceover of the company slogan “American
runs on Bulova time”.

The vast majority of television advertisements today consists of brief


advertising spots, ranging in length from a few seconds to several minutes (as well
as program length informercials). Advertisements of this sort have been used to
sell every product imaginable over the years, from household products to goods
and services, to political campaigns. The effect of television advertisement upon
the viewing public has been so successful and so pervasive that it is considered
impossible for a politician to wage a successful election campaign, in the United
States, without use of television advertising.

Radio:

69
Radio is the transmission of signals, by modulation of electromagnetic wave
with frequencies below those of visible light. Electromagnetic radiation travels by
means of oscillating electromagnetic fields that pass through the air and the
vacuum of space. Early speculation that this required a medium of transport, called
luminiferous aether, were found to be false. Information Is carried by
systematically changing (modulating) some property of the radiated waves, such as
their amplitude or their frequency. When radio waves pass an electrical conductor,
the oscillating fields induce an altgernating current in the conductor. This can be
detected and transformed into sound or other signals that carry information.

In 1888, Heinrich Hertz produced and measured the ultra high frequency range
(via a spark gap transmitter). Although Nikola Tesla first in America demonstrated
the feasibility of wireless communications in 1893, Guglielmo Marconi, an Italian
inventor, was one of the first to develop commercial workable radio
communication. It is supposed thae he sent and received his first radio signal in
Italy in 1895.

With the upcoming of private FM channels radio have got all its attention it
deserved Mahindra two wheelers was no less to it started its ad on radio targeting
area of interactive advertising presents fresh challenges for advertisers who have
hitherto adopted an interruptive strategy.

online advertising:

Online video directories for brands are at a good example of interactive


advertising. These directories complement television advertising and allow the
viewer to view the commercials of a number of brands. If the advertiser has opted
for a response feature, the viewer may then choose to visit the brand’s website, or

70
interact with the advertiser through other touch points such as email, chat or phone.
Response to brand communication is instantaneous, and conversion to business is
very high. This is because in contrast to conventional forms of interruptive
advertising,the viewer has actually chosen to see the commercial.

Electronic hoardings:

They are the modern hoardings which include lights and revolving grids
attached to it. They attract more attention from people.

Indoor media:

• Shopping complex

• Multiplex

• Retail outlets

They are the another modern approach to advertising many Mahindra two
wheelers publicity ads can found in the following places.

I-MAX

CENTRAL

FOOD WORLD

GVK ONE

71
MORE

RELIANCE FRESH

Promotions:

• Television programs

• Events & promotions

Mahindra two wheelers have also turned stones of the promotion medias by
organizing events and television programs.

DATA ANALYSIS
Gender * Age cross tabulation:

Gender Age

20-25 25-30 30-35 >40 Total

Male 52 61 72 58 243

Female 81 64 38 74 257

Total 133 125 110 132 500

72
Table 3

AGE * GENDER Cross tabulation:

Count

Age Gender Total


Male Female
20-25 52 81 133
25-30 61 64 125
30-35 72 38 110
>40 60 72 132
Total 243 257 500

Table 4

NEWSPAPER ADS EFFECTIVENESS

Valid Frequency Percent

Strongly Disagree 38 7.6

Disagree 71 14.2

Constant 104 20.8

Agree 154 30.8

Strongly Agree 133 26.6

73
Total 500 100

Table 5

Interpretation: The above data explains about the effectiveness of the Mahindra
two wheelers ads and why we are asking this question is, because how much
effective the ad is to the consumer.

News paper Ads Effectiveness?

74
Chart 4

Inferences: The above diagram explains that How many customers are effective to
the Mahindra two wheeler ads, 7% Strongly Disagree with us, 14% customers
Disagree us and 31% and 27% customers are Strongly Agree with us those says
that the ads are very effective than other ads.

NEWSPAPER ADS INTERESTING

75
Valid Frequency Percent Cumulative
Percent
Strongly Disagree 46 9.2 9.2

Disagree 78 15.6 24.8

Constant 121 24.2 49

Agree 147 29.4 78.4

Strongly Agree 108 21.6 100

Total 500 100

Table 6

Interpretation: The above data shows that the Mahindra two wheelers ads are
interesting or not interesting.

Newspaper Ads Interesting?

76
Chart 5

Inference: The above diagram explains that the Newspaper ads are interesting or
not and it says that 22% people Strongly Agree with us and 29% people Agree
with us, and 24 % people are constant, and 16% and 9% of people Disagree with
us, they says that newspaper ads are not interesting.

77
NEWSPAPER ADS ATTRACTIVE?

Valid Frequency Percent Cumulative


Percent

Strongly 49 9.8 9.8


Disagree
Disagree 47 9.4 19.2

Constant 117 23.4 42.6

Agree 190 38 80.6

Strongly Agree 97 19.4 100

Total 50 100

Table 7

Interpretation: Why we are asking this question is, because the newspaper ads are
attractive or not. The above data says that How much attractive the newspaper ads
are for the customer.

Newspaper Ads Attractive?

78
Chart 6

Inference: The above diagram says that the newspaper ads of Mahindra two
wheelers are 38% people Agree with us and 19% people Strongly Agree with us,
23 % people says that constant and 10% and 10% people disagree with us, Finally
we says that more than 50% of people find the ads are Attractive.

NEWSPAPER ADS INFORMATIVE?

79
Valid Frequency Percent Cumulative
percent

Strongly 41 8.2 8.2


Disagree
Disagree 59 11.8 20

Constant 108 21.6 41.6

Agree 163 32.6 74.2

Strongly Agree 129 25.8 100

Total 500 100

Table 8

Interpretation: The above data explains that the Mahindra two wheelers ads are
informative or not informative, and why we are asking this question is, because
How much informative is the ads for the customer.

NEWSPAPER ADS INFORMATIVE?

80
Chart 7

Inferences: The above diagram says that the majority the majority of the people
says the Mahindra two wheeler ads are the more informative and message oriented,
33% of people Agree with us and 26% of people strongly agree with us and 8%
and 12% of people does not agree with us.

81
TV ADS ENTERTAINMENT

Valid Frequency Percent Cumulative


Percent

Strongly 63 12.6 12.6


Disagree
Disagree 73 14.6 27.2

Constant 47 9.4 36.6

Agree 136 27.2 63.8

Strongly Agree 181 36.2 100

Total 500 100

Table 9

Interpretation: The above data belongs to that evaluation of the Mahindra two
wheelers ads are used to entertain its customers or not.

82
TV ADS ENTERTAINMENT

Chart 8

Inference: the above diagram explains that the 36% of people strongly agree with
us and 27% of people agree with us, 9% of people say constant and 13% of people
strongly disagree and 15% of people disagree with us because the ads are not

83
entertaining them. Finally we can say that Mahindra two wheelers ads are
entertaining the audience.

TV ADS EFFECTIVENESS

Valid Frequency Percent Cumulative


percent

Strongly 31 6.2 6.2


Disagree
Disagree 52 10.4 16.6

Constant 93 18.6 35.2

Agree 125 25 60.2

Strongly Agree 199 39.8 100

Total 500 100

Table 10

Interpretation: The above data says about the Mahindra two wheeler ads are
effective or not effective, and why are we asking this question, because we find out
How much is the ads effective to the customer.

84
TV ADS EFFECTIVENESS

Chart 9

Inference: the above diagram shows that the 40% of people strongly agree with us
and 25% of people agree with us, 19% of people says constant. 10% and 6% of
people Disagree and strongly disagree with us they says that the Mahindra two

85
wheeler ads are not effective to them. Finally we can say that more than 65% of
people agree that the ads of the Mahindra two wheelers are effective.

TV ADS ATTRACTIVENESS

Valid Frequency Percent Cumulative


percent
Strongly 25 5 5
Disagree
Disagree 33 6.6 11.6

Constant 106 21.2 32.8

Agree 200 40 72.8

Strongly Agree 136 27.2 100

Total 500 100

Table 11

86
Interpretation: In the above data that How much attractive to the customers and
why we are asking this question, because the Mahindra two wheeler TV ads are
How much attractive than other company ads.

TV ADS ATTRACTIVENESS

Chart 10

87
Inference: The above diagram says that the 40% of people agree with us and 27%
of people strongly agree with us, 21% of people says that it is constant and 7% of
people Disagree with us and 5% of people Strongly disagree with us, they say that
the ads are not attractive to them. Finally we say that the maximum of people agree
that Mahindra two wheelers ads are attractive.

TV ADS INFORMATIVE

Valid Frequency Percent Cumulative


percent
Strongly 56 11.2 11.2
Disagree
Disagree 58 11.6 22.8

Constant 97 19.4 42.2

Agree 135 27 69.2

Strongly Agree 154 30.8 100

Total 500 100

Table 12

88
Interpretation: The above data shows that the Mahindra two wheelers ads are
informative and message oriented, why we are asking this question, because to
know about the ads are informative or not informative.

TV ADS INFORMATIVE

89
Chart 11

Inference: The above diagram shows that the TV ads of Mahindra two wheeler.
31% of people says that the Ads are informative and 27% of people agree with us
they say that the ads are informative and 19% of people says constant, 12% of
people says that the ads are not informative. And 11% of people strongly disagree
with us saying that the ads are not so attractive.

SAW OR HEARD AN AD FOR?

Valid Frequency Percent Cumulative


percent

Newspaper 52 10.4 10.4

Magazine 89 17.8 28.2

TV 310 62 90.2

Billboard 29 5.8 96

Internet 20 4 100

Total 500 100

Table 13
90
Interpretation: The above data shows that the Mahindra two wheelers ads, why
we are asking this question, because where the customer has lastly seen or heard
this ad,.

Where you see or hear the ad?

Chart 12

91
Inference: The above diagram represents that the 62% of people have seen the ad
in television, and 18% of people have seen in magazine and 10% of people have
seen in newspaper, and 6% and 4% have seen in billboards and internet
respectively. Finally we can say that maximum of the people have seen the ad in
Television.

HOW BELIEVABLE WERE THE ADVERTISEMENT ABOUT THE


PRODUCT/SERVICE?

Valid Frequency percentage Cumulative


percentage

Very much unbelievable 60 12 12

Somewhat unbelievable 71 14.2 26.2

Very much believable 57 11.4 37.6

Somewhat believable 165 33 70.6

About the same 147 29.4 100

Total 500 100

Table 14

92
Interpretation: The above data shows that how much believable it is to our
personal life, and to know that the ads are believable or not believable.

How believable were the ad about the Product?

93
Chart 13

Inference: The above diagram shows that the Mahindra two wheelers ads are
believable or not believable, 33% and 12% of people says that the ads are very
much believable, 14% and 12% of people says that the ads are not believable, 29%
of people have not responded to me. Finally we say that the Mahindra two wheeler
ads are much believable.

HOW PERSONALLY RELEVANT WAS THE AD MESSAGE?

Valid Frequency Percentage Cumulative


Percentage
Irrelevant 62 12.4 12.4
Some what 66 13.2 25.6
irrelevant
About the same 51 10.2 35.8
Some what 133 26.6 62.4
relevant
Relevant 188 37.6 100
Total 500 100

Table 15

Interpretation: The above data shows that how much personally the ads were
relevant to the customers.

94
HOW PERSONALLY RELEVANT WAS THE AD MESSAGE?

Chart 14

95
Inference: The above diagram shows that the Mahindra 2 wheelers ads are
relevant or not relevant, 38% and 27% of people says that they are very much
personally relevant and 10% of people are not responded to me. The remaining
13% and 12% of people says that they are not personally relevant to them. Finally
we can say that the Mahindra 2 wheeler is relevant.

HOW WELL THE ADS DESCRIBE PRODUCT / SERVICE?

Valid Frequently percentage Cumulative


percentage
Hard to Understand 127 25.4 25.4

Easy to understand 373 76.6 100

Total 500 100

Table 16

Interpretation: The above data shows that how will the ad describe the product or
services. Whether it is easy to understand or hard to understand.

96
How well the Ad describe Product/ Service?

97
Chart 15

Inference: The above diagram shows that the 75% people says that the Mahindra
two wheelers ads are very easy to understand and 25% of people says that it is hard
to understand.

DO YOU REMEMBER SEEING THIS AD?

Valid Frequency Percentage Cumulative


Percentage
Yes 361 72.2 57.2

No 139 27.8 100

Total 500 100

Table 17

Interpretation: Why we are asking this Question is, Because how many
consumers remember the ads of Mahindra 2 wheelers and what type of feeling
they expressed to us. This data explains that how many people remember this ad.

98
DO YOU REMEMBER SEEING THIS AD?

99
Chart 16

Inference: The above diagram explains the Mahindra 2 wheelers ads takes the care
as big 57% of people remember seeing an Mahindra 2 wheeler ad, and 43% people
are not remember seeing an Mahindra 2 wheeler ad..

FINDINGS
Questionnaires findings:

• It has been carefully observed from the data that has majority of people find

Mahindra 2 wheelers television ads and newspaper ads to be interesting and

informative.

• TV ads of Mahindra 2 wheelers have been given more emphasis for

attractiveness and appealing

• The majority of people remember seeing the ads of Mahindra 2 wheelers.

But, It still has scope to attractive the remaining market by better

advertising

100
Interview findings:

• Some interviews were taken orally in the showroom and college’s

youngsters were asked if they like the Mahindra 2 wheelers ads and which

ad of Mahindra 2 wheelers they like the most. The following were the

findings.

• Majority of people of both showroom and college remember seeing the ads.

• Most of the college youngsters liked the celebrity ads of Mahindra 2

wheelers like (Amir Khan in 3 idiot’s movie) ads.

SUGGESTIONS
• Frequency and attractiveness of ads in print media have to be increased.

• Advertising through billboards with brand ambassadors of Mahindra 2

wheelers has to be improved to attain a wider action.

• New trends in advertising through 3D animations and 2D animations must

be adapted

• Advertising through popular serials of popular channels must be taken up.

• Must try to increase promotional activities.

101
• Social and personal life aspects of people in connection to the vehicles must

be highlighted more for more attraction.

• Innovative ideas must be created to attract even upper middleclass and

middle class families towards Mahindra 2 wheelers.

• Online advertising of Mahindra 2 wheeler should come up like Television

ads in a vast way to each and attract potential market.

Conclusion

• Mahindra 2 wheelers Must try to increase promotional activities for its

newly launch scooters

• New trends in advertising through 3D animations and 2D animations must

be adapted

102
• The majority of people remember seeing the ads of Mahindra 2 wheelers.

But, It still has scope to attractive the remaining market by better

advertising

• Advertising through billboards with brand ambassadors of Mahindra 2

wheelers has to be improved to attain a wider action.

Questionnaire

1. NAME :

2. GENDER :

3. AGE :

4. LOCATION :

5. MOBILE NUMER :

103
Scale:

1. Strongly disagree

2. Disagree

3. Constant

4. Agree

5. Strongly agree

6) Please indicate your evaluation of News Paper Ads?

Entertainment 1)___ 2)___ 3)___ 4)___ 5)___

Effectiveness 1)___ 2)___ 3)___ 4)___ 5)___

Interesting 1)___ 2)___ 3)___ 4)___ 5)___

Attractive 1)___ 2)___ 3)___ 4)___ 5)___

Informative 1)___ 2)___ 3)___ 4)___ 5)___

7) Please indicate your evaluation of TV Ads?

Entertainment 1)___ 2)___ 3)___ 4)___ 5)___

Effectiveness 1)___ 2)___ 3)___ 4)___ 5)___

Interesting 1)___ 2)___ 3)___ 4)___ 5)___

104
Attractive 1)___ 2)___ 3)___ 4)___ 5)___

Informative 1)___ 2)___ 3)___ 4)___ 5)___

8) Where was the last place you see or hear the advertising? ( )

1. News paper

2. Magazine

3. Television

4. Billboards

5. Internet

9) Do you remember seeing this advertisement? ( )

1. Yes

2. No

10) How well the Ad describe the product or services? ( )

1. Hard to understand

2. Easy to understand

11) How believable were Ads statement about the product or services? ( )

105
1. Very much unbelievable

2. Some what believable

3. Very much believable

4. Some what believable

5. About the same

12) How personally relevant was the Ads message to you ? ( )

1. Irrelevant

2. Some what irrelevant

3. About the same

4. Some what relevant

5. Relevant

13) Which of the following words or phrases would you use to describe the
Ads message to you? ( )

• Appealing

• Attention - Getting

• Boring

• Clever

106
• Copy – cat

• Convincing

• Creative

• Fast – Moving

• Irritating

• Worth remembering

• Wouldn’t mind seeing again

(Thanks for your Response)

107
BIBLIOGRAPHY

• Marketing management by Philip Kotler.

• Advertising theory and practice by chaunawalia kumar sethia, subrahanian


Sichuan.

• Johnson, J.Douglas, “Advertising Today”, Chicago Science Research


Associates.

• Advertising management by Mahinder Mohan.

• The economic time of India Magazine.

• The Business time Magazine.

• www.mahindra.com

• www.mahindra2wheeler.com

• en.wikipedia.org/wiki/Mahindra_and_Mahindra

108
Mahindra & Mahindra Organization structure:

109
110