Professional Documents
Culture Documents
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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.
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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.
• Geographic factors
• Demographic factors
• Psychological factors
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…..
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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.
Research definition:
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- BY KERLINGER
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.
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.
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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.
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the pre- testing of questionnaire, I seen the reaction of respondents and suggestions
required to make change in research instrument.
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
(B)Sampling Unit:-
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everyone in the target population has known chance of being sampled. So the
survey is conducted particularly in Hyderabad City.
(C)Sample size:-
n=p*q (z/e) 2
Were,
n=Sample Size
q=0.20(I-p)
n= (0.84)*(016)*(1.96/0.05)2
= (0.1344)*(1536.64)
=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:-
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Review of LITERATURE
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.
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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.
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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 thus is :
1. Impersonal
2. A communication of ideas.
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.
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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.
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
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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.
The print media carry their massages entirely through the visual mode. These
media consist of newspapers, magazines and direct mail.
(A) Newspaper:
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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.
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.
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
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consumers at an advantageous point which they are embarking on a shopping trip.
This medium is a low cost medium.
SALES PROMOTION
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
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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 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
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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
ADVERTISING EFFECTIVENESS
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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:
PROGRESS TESTS
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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.
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.
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 :
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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
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
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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.
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:
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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:
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advertiser decides what media to use. The types of media categories from which
advertisers can choose include the following:
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:
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• 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?
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.
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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."
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:
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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 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
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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:
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.
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
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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
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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
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• 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.
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
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tractors) marked a growth of 17% over the corresponding previous. The two-
wheeler sales have witnessed a spectacular growth trend since the mid nineties.
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
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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:
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▪ 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
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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
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-
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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
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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
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.
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.
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 (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.
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.
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.
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.
Systech sector:
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.
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.
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:
56
Market Cap 295435.4096385 ( Rs. in Millions )
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.
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:
(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
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 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
audience likely to tune into a radio or television station? Which section of the
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
Point of sale:
Print media:
News paper
66
art/entertainment, society and sports. Most traditional papers also features an
editorial page containing columns which express the personal opinion of writers.
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
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.
recognized as an opposite editorial which third parties pay a fee to have included in
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
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
Hyderabad.
Brochures:
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
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”.
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:
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
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MORE
RELIANCE FRESH
Promotions:
• Television programs
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
Male 52 61 72 58 243
Female 81 64 38 74 257
72
Table 3
Count
Table 4
Disagree 71 14.2
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.
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.
75
Valid Frequency Percent Cumulative
Percent
Strongly Disagree 46 9.2 9.2
Table 6
Interpretation: The above data shows that the Mahindra two wheelers ads are
interesting or not 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?
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.
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.
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Valid Frequency Percent Cumulative
percent
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.
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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.
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TV ADS ENTERTAINMENT
Table 9
Interpretation: The above data belongs to that evaluation of the Mahindra two
wheelers ads are used to entertain its customers or not.
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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
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entertaining them. Finally we can say that Mahindra two wheelers ads are
entertaining the audience.
TV ADS EFFECTIVENESS
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.
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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
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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
Table 11
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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
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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
Table 12
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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
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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.
TV 310 62 90.2
Billboard 29 5.8 96
Internet 20 4 100
Table 13
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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,.
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.
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.
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.
Table 15
Interpretation: The above data shows that how much personally the ads were
relevant to the customers.
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HOW PERSONALLY RELEVANT WAS THE AD MESSAGE?
Chart 14
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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.
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.
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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.
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.
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DO YOU REMEMBER SEEING THIS AD?
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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
informative.
advertising
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Interview findings:
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.
SUGGESTIONS
• Frequency and attractiveness of ads in print media have to be increased.
be adapted
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• Social and personal life aspects of people in connection to the vehicles must
Conclusion
be adapted
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• The majority of people remember seeing the ads of Mahindra 2 wheelers.
advertising
Questionnaire
1. NAME :
2. GENDER :
3. AGE :
4. LOCATION :
5. MOBILE NUMER :
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Scale:
1. Strongly disagree
2. Disagree
3. Constant
4. Agree
5. Strongly agree
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Attractive 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
1. Yes
2. No
1. Hard to understand
2. Easy to understand
11) How believable were Ads statement about the product or services? ( )
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1. Very much unbelievable
1. Irrelevant
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
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• Copy – cat
• Convincing
• Creative
• Fast – Moving
• Irritating
• Worth remembering
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BIBLIOGRAPHY
• www.mahindra.com
• www.mahindra2wheeler.com
• en.wikipedia.org/wiki/Mahindra_and_Mahindra
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Mahindra & Mahindra Organization structure:
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