Sip Kubota
Sip Kubota
Sip Kubota
EXECUTIVE SUMMERY
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EXECUTIVE SUMMERY
The project titled STUDY ON SALES PROMOTION ACTIVITY OF KUBOTA
TRACTOR for the company was undertaken with a prime motive to understand the
actual process involved in the sales promotion activity, carried out for Kubota tractors
models of the company which are basically tractors utilized for agriculture sector and
construction industries . These products are basically used in process industries such as
construction, agriculture etc.
This project was chosen with an intention to unrevealed sales promotion carried out
for industrial products and also since it is the area of interest for making a carrier in
industrial marketing i.e. business to business marketing. The company Kubota
Corporation Ltd. was specifically chosen since it is into manufacturing and marketing
of Tractors. Another reason for selecting this company is that it has huge and
diversified customer base for Kubota tractors. its products providing good scope for
the study.
The location chosen for the study was restricted to the companies within Jalgaon and
surrounding Jalgaon. And for each stage a different methodology was adopted. The
actual sales and promotion was done by mostly visiting the companies and interacting
with either maintenance/purchase/projects manager with reference to products and
then a detailed sales report was prepared on the basis of this interaction. Other sales
promotional technique such as sending emails, letters, and catalogs of the product was
also carried out.
In the second stage a feedback was taken from the customers regarding the price
offered by the company for the products , whether they are satisfied with the after sales
service provided by the company to its existing company and finally their opinion
about the variety of newly launched highly customized models of the company .
And after this feedback for each of the above mentioned parameters each was analyzed
individually to earn some productive results for the company.
And finally various sales promotional tools were studied. And it was found that
Majority of the existing and prospective customers were not satisfied with the price
offered by the company for tractors. After sales service was found to be a bit problem
issue for the company upon which the company needs to improve to gain competitive
advantage. And the existing as well as the prospective customers have given a very
overwhelming response to the newly launched products of the company
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CHAPTER 2
ORGANIZATIONAL PROFILE
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ORGANIZATIONAL PROFILE
Industry History
Indian Tractor Industry developed in 1945 to 1960 because of the War surplus tractors
and bulldozers were imported for land reclamation and cultivation in mid 1940's. In
1947 Central and State Tractor Organizations were set up to develop and promote the
supply and use of tractors in agriculture and up to 1960, the demand was met entirely
through imports. In 1951 there were 8,500 tractors in use, 20,000 in 1955 and 37,000
by 1960. Local production began with five manufacturers in 1961 producing a total of
880 units per year. Eicher, Gujarat Tractors, TAFE, Escorts, M&M are the major
tractor manufacturers.
During 1965 this had increased to over 5000 units per year and the total in use had
risen to over 52000. In the year 1970 annual production had exceeded 20000 units
with over 146000 units working in the country. From 1971 to 1980 six new
manufacturers were well established during this period although three companies
(Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd
began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK.
Others were HMT and PTL (SWARAJ) Total production climbed steadily to 33000 in
1975 reaching 71000 by 1980.
Credit facilities for farmers continued to improve and the tractor market expanded
rapidly with the total in use passing the half million mark by 1980. 1981 to 1990 A
further five (Auto Tractors, Haryana Tractors, United Auto Tractors, Asian Tractors,
VST Tillers) manufacturers began production during this period but only last one
survived in the increasingly competitive market place. Annual production exceeded
75000 units by 1985 and reached 140000 in 1990 when the total in use was about 1.2
million. Then India - a net importer up to the mid-seventies - became an exporter in
the 80's mainly to countries in Africa between 1991 to 1997.
Since 1992 it has not been necessary to obtain an industrial license for tractor
manufacture in India. By 1997 annual production exceeded 255000 units and the
national tractor park had passed the two million mark. India has now emerged as one
of the world leaders in wheeled tractor production. Saturation achieved in Punjab with
tractor density as high as 82 per 1000 ha against Indian average of 12.4, world average
of 17.4 and 32.1 in developed countries. Intense competition has led to rapid advances
in design and quality.
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MARKET CAPITALISATION
Tractor market in India is about Rs 6000
crore. On an average around 400000
tractors are produced and their sale is
260000.Uttar Pradesh is the largest tractor
market in our country. One out of every
four tractor is being purchased here. One
third of world's Tractor production is in
India. The Total Turn Over is 10000 crore
and the Total investment is 8000 crore.
With Employment of 28000 people
directly and 150000 people indirectly the
Tractor population is 3000000 compared
to 900000 in China.
Table 2.1
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Fig 2.1
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Fig 2.2
Fig 2.3
For the financial year 2013-14, domestic sales occupies around 91 percent share of
total tractor production and rest 9 percent production is exported from India. Below
graphs illustrates the same.
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Fig 2.4
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Fig 2.5
COMPANY PROFILE
History of the companyKubota
Company Information
Established in 1890, Kubota - taking full advantage of its forward-looking
management policies and by incorporating unique R&D activities - has made constant
efforts to remain on the leading-edge of development and innovation. As a result, it
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Kubota Corporation
Headquarters: Osaka, Japan
Kubota Corporation of Japan was established in 1890 and has become an international
brand leader with a focus on contributing to society by offering environmentally
compatible equipment designed to improve quality of life. Kubota Corporation has
subsidiaries and affiliates that manufacture and/or market products that are sold in
more than 130 countries.
Kubota was the first agricultural machinery manufacturing company in Japan to
receive the prestigious "Deming Award," for manufacturing excellence. In 1992,
Kubota Corporation received the "Sankei Newspaper Award" as part of the first Global
Environment Awards, recognizing the Companys continuing contribution to
protection of environment.
Beginning in 1982, Kubota customers have been offered a wide range of financing
alternatives through Kubota Credit Corporation, U.S.A. (KCC). It provides
competitive interest rates, equity financing, flexible down payments, monthly and
seasonal payment terms and property damage insurance. Kubota dealers can tailor a
variety of finance and lease programs to meet specific customer requirements and
KCC provides fast, efficient and convenient payment alternatives vital to cash flow
and other purchasing needs.
Through a comprehensive national dealer network, KCC offers personal credit
counseling, excellent service and competitive finance products.
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Brand Statement
"For Earth, For Life" the KUBOTA Group promises to continue supporting the
prosperous life of humans while protecting the environment of this beautiful earth.
Mission
Food, water and the environment are indispensable for human beings.
The KUBOTA Group continues to support the future of the earth and
humanity
by contributing products that help the abundant and stable production of
food,
help supply and restore reliable water, and help create a comfortable living
environment through its superior products, technologies and services.
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The world has many problems in the areas of food, water and the environment, which
are indispensable for human beings.
Those problems are not separate themes, but linked closely to each other.
The population growth has a great influence on environmental changes, brings
problems to water resources, and leads to the short supply of food.
The KUBOTA Group considers food, water and the environment as a singular theme
and contributes to solve problems in these areas.
KUBOTA GLOBAL LOOP Relations among food, water, and the environment
Food, water and the environment are not separate themes, but linked closely to each
other.
Corporate Data:-
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Corporate Name
KUBOTA Corporation
Head Office
Board of Directors
Established
1890
Capital
Revenues(Consolidated)
Revenues(Nonconsolidated)
Number of employees
(Consolidated)
Number of employees
(Non-consolidated)
NAEDA representative Steve Kost presented the 2013 NAEDA Dealers Choice
Award to Kubota Tractor Corporation (KTC) management at a special staff
presentation on Wednesday, April 17, 2013. From left to right: Buck Trawick, KTC
marketing director; Greg Embury, KTC senior vice president, marketing and dealer
development; Steve Kost, executive vice president for Far West Dealers Association
representing NAEDA; and, Todd Stucke, KTC vice president, agriculture and turf
division.
TORRANCE, Calif. - (April 18, 2013) Kubota Tractor Corporation has received the
number one rating and "Dealers Choice Award among Major Tractor Manufacturers,
according to the North American Equipment Dealers Association (NAEDA) 2013
Dealer-Manufacturer Relations Survey.
"Were honored to receive the Dealers Choice Award recognition from
NAEDA and from Kubota dealers across the country, said Greg Embury, sr. vice
president of marketing and dealer development for Kubota Tractor Corporation.
"Awards such as these fall directly in line with the companys top priorities, and we
look forward to working alongside our loyal and valued dealers to grow our business
and respond to the strong customer demand for Kubota tractors.
Nearly 1,000 equipment dealers participated in this years survey, rating the
manufacturer lines they carry on 12 categories. Kubota rated number one among major
tractor manufacturers in overall satisfaction, product quality, product technical
support, parts quality, return privileges, warranty procedures, warranty payments, and
manufacturer response to dealer needs/concerns. In all 12 categories, Kubota scored
above the average rating for all manufacturers. A third-party research firm not
affiliated with NAEDA collected and tabulated the results.
tractor manufacturer category included Kubota, AGCO, Case IH, Case Industrial, John
Deere and New Holland. Scoring 69.15 out of 84 points, Kubota took home top honors
for "Dealers Choice among major tractor manufacturers in this category. A formal
presentation of the award by NAEDA representatives to Kubota Tractor Corporation
management and staff was held at the manufacturers corporate office in Torrance,
Calif. on Wednesday, April 17.
NAEDA congratulates Kubota on its achievements and compliments the
company for placing a high importance on the dealer-manufacturer relationship, said
Joe Dykes, director of member services for NAEDA, and coordinator of this year's
survey. While 2013 marks the first year for the Dealer's Choice awards, Kubota has
scored consistently well from dealer ratings in past NAEDA Dealer Manufacturer
Relations surveys. In 2012, Kubota took top honors in the survey, ranking number
one in ten of 12 categories among major tractor manufacturers.
PRODUCT PROFILE
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LITERATURE REVIEW
Theoretical background
Promotion is term taken from Latin (Promovere) where it means moving from one end
to another. In marketing, promotion means all those tools that a marketer uses to take
his products from factory to the customer and hence involves advertising, sales
promotion, personal selling and public relations. Communication with prospective and
present customers. It is called as integrated marketing communication.
Advertising:
Any Paid form of non personal presentation and promotion of ideas, goods, or services
by an identified sponsor.
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Sales Promotion:
A variety of short term incentives to encourage trial or purchase of a product or
service.
Personal Selling:
Face to face interaction with prospective purchaser for the purpose of making
Answering questions, and procuring orders.
SALES PROMOTION:
In marketing, sales promotion is one of the five aspects of promotion. The other four
parts of the promotional mix are advertising, personal selling, publicity/public
relations, and direct &interactive marketing. Sales promotions are non-personal
promotional efforts that are designed to have an immediate impact on sales. Sales
promotion is media and non-media marketing communications employed for a predetermined, limited time to increase consumer demand, stimulate market demand or
improve product availability.
Examples include:
coupons
contests
rebates
Whereas advertising gives a reason to buy, Sales promotion offers an incentive to buy.
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Sales promotion can be directed at either the customer, own sales staff, or distribution
channel members.
Sales promotions targeted at the consumer are called consumer sales promotions.
For example: Samples, coupons, cash refunds, price offs, prizes etc.
Sales promotions targeted at retailers and wholesalers are called trade sales
Promotions. For example: Prices offs, advertising allowances, and free goods etc.
Sales promotions targeted at company s own sales force are called as sales-force
Promotion. For example: Trade shows, conventions, contests for sales representatives
and specialty advertisements.
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2. Letters:
Letters are also a useful sales promotion activity if properly composed and properly
timed. If not, they may have a negative effect. It is probably advisable to place to place
responsibility for promotional letters in a specialized unit, although almost every
division and department of a business usually participates by supplying information to
the unit.
3. Promotional novelties:
The company provides tool kits, hood, weight, etc gives for promotional novelties.
4. Public relations:
Essence of public relations is proper conduct of a firm relationship
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CHAPTER 3
OUTLINE OF PROBLEM
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OUTLINE OF PROBLEM
The project was undertaken with a prime objective to understand the practical aspects
of sales promotion activity carried out for the Kubota tractors. This project has some
objectives which are as under.
To study the Understanding the actual market scenario for Kubota tractors.
To study the views of customers on the newly launched models the company.
To study the impact on sales promotion on Kubota tractor.
To increase sales directly by publicity through media which are complementary
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CHAPTER 4
RESEARCH METHODOLOGY & DATA ANALYSIS
& INTERPRETATION
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RESEARCH METHODOLOGY
Managers need information in order to introduce products and services that create
value
In the mind of the customer. But the perception of value is subjective one,
With the various subgroups which compose its general public. This requires thorough
study of the way in which the company s operations affects each of these groups and a
comprehensive program for responding in a positive way to each of them.
And what customers value this year may be quite different from what they value next
year. As such, the attributes that create value cannot simply be deduced from common
knowledge. Rather, data must be collected and analyzed. The goal of marketing
research is to provide the facts and direction that managers need to make their more
important marketing decisions. To maximize the benefit of marketing research, those
who use it need to understand the research process and its limitations.
Marketing Research vs. Market Research
These terms often are used interchangeably, but technically there is a difference.
Market research deals specifically with the gathering of information about a market's
size and trends. Marketing research covers a wider range of activities. While it may
involve market research, marketing research is a more general systematic process that
can be applied to a variety of marketing problems.
The Value of Information can be useful, but what determines its real value to the
Organization?
In general, the value of information is determined by:
The ability and willingness to act on the information.
The accuracy of the information.
The level of indecisiveness that would exist without the information.
The amount of variation in the possible results.
The level of risk aversion.
The reaction of competitors to any decision improved by the information.
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Problem Definition
The decision problem faced by management must be translated into a market research
problem in the form of questions that define the information that is required to make
the decision and how this information can be obtained. Thus, the decision problem is
translated into a research problem. For example, a decision problem may be whether to
launch a new model. The corresponding research problem might be to assess whether
the market would accept the new product. The objective of the research should be
defined clearly. To ensure that the true decision problem is addressed, it is useful for
the researcher to outline possible scenarios of the research results and then for the
decision maker to formulate plans of action under each scenario.
Research Design
Exploratory research
The research methodology used for this study is exploratory research.
In some cases the research will fall into these categories, but in other cases different
phases of the same research project will fall into different categories. Exploratory
research has the goal of formulating problems more precisely, clarifying concepts,
gathering explanations, gaining insight, a literature search, surveying certain people
about their experiences, focus groups, and case studies.
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Data Collection
Data collection is a term used to describe a process of preparing and collecting data for
example as part of a process improvement or similar project. The purpose of data
collection is to obtain information to keep on record, to make decisions about
important issues, to pass information on to others. Primarily, data is collected to
provide information regarding a specific topic. The planning of data collection for
research work is generally developed in early stage of the research for its importance
and impact on the research work. For this research, the data is collected from the
companies through a survey questionnaire.
Primary Data
Primary data was collected through questionnaires and personal interaction
with the customers and also from personal observation.
Secondary Data
Through internal source, internet, magazines, articles, newspapers etc.
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Sampling methodConvenience sampling method has been adopted for selecting sample
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DATA ANALYSIS
Analysis of sales promotion activities reports
Sales promotion activity reports are analyzed on the basis of interaction with the
persons Contacted to find how many of them have given a positive response to the
tractor of the company.
1. Are you aware of Kubota tractor Yes or No?
Table no: 4.1
Particular
No of
Percentage
Yes
respondents
35
70%
No
15
30%
Total
50
100%
BRAND AWARENESS
30%
Yes
No
70%
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No of Respondents
12
15
11
12
50
Sales
24%
24%
swaraj
mahindra
kubota
22%
30%
new holland
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3.
Particular
No of
Percentage
Yes
respondents
45
90%
No
Total
5
50
10%
100%
showroom visit
10%
Yes
No
90%
Fig 4.3
Analysis: - out of 50 respondent 45 are visit frequently and 5 are not visited
Interpretation: - most of customer visited frequently.
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Particular
No of
Percentage
respondent
Promotional offers
s
20
40%
Discount offers
20
40%
Range of products
10%
8%
other
2%
Total
50
100%
visit
promotional offer
8% 2%
discount offer
10%
40%
range of product
location of the store
other
40%
Fig - 4.4
Analysis: - out of 50 respondent, 20 are come to visit for promotional
Offers, 20 for discount offer, 5 for range of the product, 4 for location of the store
and 1 are other reason visited.
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No of
Percentag
respondent
Advertisement
s
10
20%
30
60%
Hoardings/Newspape
10
20%
r
Total
50
100%
Particular
Promotional Activity
20%
20%
advertisement
friends and relatives
hoardings/newspaper
60%
Fig - 4.5
Analysis: - out of 50 respondent, 30 are come to know friends and relatives, 10 for
advertisement, and 10 for Hoardings and newspaper.
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Interpretation:- 60% customer are come to know friends and relatives and another
20%, 20% are come to know for advertisement and newspaper/hoardings.
6.
Table 4.6
Particular
No of
Percentage
respondent
Good
s
30
60%
average
18
36%
poor
4%
Total
50
100%
Rate
4%
good
36%
60%
avarage
poor
Fig 4.6
Analysis: - out of 50 respondent,30 users have good rate to Kubota tractor,18 are
average and 2 are average rate to Kubota tractor.
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Interpretation: - 60% customers have good rate to Kubota tractor, 36% have
average rate, and 4% customer have poor rate.
7. Does the Sales Promotion activities of Kubota tractor made you to visit
again?
Table -4.7
Particular
No of
Percentage
Yes
respondents
45
90%
No
10%
Total
50
100%
visit
10%
Yes
No
90%
Fig-4.7
Analysis: - out of 50 respondents, 45 are visit again and 5 are not visited.
Interpretation: - 90% customer are visited and 10% are not visited when Kubota
tactor does sales promotion activity
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Table -4.8
Particular
No of
Percentage
respondent
Good
s
40
80%
average
10%
poor
10%
Total
50
100%
Customer Experience
10%
10%
Good
Average
Poor
80%
Fig 4.8
Analysis: - out of 50 respondents, 40 respondents have good experience, 5 are
average experience and 5 are poor experience.
Interpretation:-80% customers have good experience, 10% have average and also
10% have poor experience for purchase Kubota tractor.
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Particular
No of
Percentag
e
Very Attractive
respondents
40
80%
Less Attractive
18%
2%
Total
50
100%
18%
2%
Very Attractive
Less Attractive
Not at all attractive
80%
Fig 4.9
Analysis: - out of 50 respondent,40 are said offers are very attractive, 9 are said less
attractive and 1 said not at all attractive.
Table 4.10
Particular
No of
Percentag
e
Satisfactory
respondents
45
90%
Average Satisfactory
8%
Dissatisfactory
2%
Total
50
100%
8% 2%
Satisfactory
Average Satisfactory
DisSatisfactory
90%
Fig 4.10
Analysis:- out 50 respondent ,45 are satisfies,4 are average satisfy and 1 are
dissatisfy for quality of product as per the advertisement of Kubota tractor.
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Particular
Percentag
No of
Respondent
s
Cash discount
30
60%
Free accessories
10
20%
Free servicing
10%
10%
replacing
Total
50
100%
Promotional aspect
Cash discount
10%
Free assesories
10%
Free servicing
20%
60%
Fig No:-4.11
Analysis:-out of 50 respondent ,30 are prefer cash discount, 10 are prefer free
accessories, and 5 are prefer free servicing,5 are prefer free spare part replacing.
Interpretation:The promotional aspect like cash discount, free accessories, free servicing, free
spare part etc want by customers from dealer.
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COMPANY NAME
1
Swaraj
2
Mahindra
3
Kubota
4
New Holland
AFTER SALES
NEW
SERVICE
MODELS
New product is
AVERAGE
GOOD
New product is
EXCELLENT
OUTSTANDING
New product is
AVERAGE
GOOD
New product is
OUTSTANDING
OUTSTANDING
Interpretation:Most of the customers are satisfied with newly launched models & after
sales service provided by company.
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CHAPTER 5
ACTIVITY CHART
ACTIVITY CHART
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Week
Week 1
Target Assigned
To visit all customer who
Target Status
Achieved
successfully
villages
To visit all customer who
Achieved
successfully
villages
To visit all customer who
Achieved
successfully
villages
To visit all customer who
Achieved
successfully
villages
To visit all customer who
Achieved
successfully
villages
To visit all customer who
Achieved
successfully
villages
To visit all customer who
Achieved
successfully
on Kubota tractor.
on Kubota tractor.
on Kubota tractor.
Task Performed
Visited 1 village per day
villages
To visit all customer who
Partially
Achieved
on Kubota tractor.
villages
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CHAPTER 6
KEY LEARNING
KEY LEARNING
I learn a lot of things and a marvellous experience of practical business environment. The
company guided me in the right direction which helped me to understand the
organizational culture, teamwork, targets and the process to achieve them, to handle
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pressure, management information system, work flow, information flow and so on. In a
nutshell, I can say that the internship at Kubota tractor helped me to develop greater skills
within myself such as managerial skills, communication skills, interpersonal skills,
employability skills, corporate etiquettes such as marketing etiquettes, office etiquettes,
meeting etiquettes, telephone etiquettes, presentation etiquettes, customer interaction
etiquettes, time management and maintaining a healthy relationship with the company
and its customers.
I understood the Kubota tractor features and quality and its performance in
market.
I understood the companys services and overall companies market in that
jalgaon area.
I understood practical knowledge about sales promotions.
I understood the various advertisements which are use in field.
I understood how to directly interact with the customer in face to face sales
promotion activity.
I understood how to convince to the customer for purchase the products
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CHAPTER 7
CONTRIBUTION TO THE ORGANIZATION
of sale.
With the help of this project satpuda motors was able to analyze how to maintain
old customer.
With the help of this project they was able to analyze there is a need for improvement
in the sales promotions.
With the help of this project they was able to analyze company should improve the
image of the firm.
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With the help of this project they was able to analyze popularize the brand name of the
product.
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CHAPTER 8
REFERENCE & APPENDIX, QUESTIONNAIRE
& WEB SITE DETAIL
Marketing Management
-Philip Kotler.
Marketing Management
Research Methodology
- C R Kothari.
Websites:www.kubota.co.in
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www.kubota.com
www.google.com
www.wikipedia.com
Questionnaires
1)
2)
3)
4)
5)
6)
Name
:
Age
:
Educational Status :
Address
:
Occupation
: a) Farmer
[]
b) Other
Annual Income
: a) Below 40000
[]
1. b) 41000-80000
[]
2. c) 81000-110000
[]
3. d) 111000 and above
[]
7) Are you aware of Kubota tractors Yes or No?
a. a)Yes
b)No
[]
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a. Yes
b. No
16) Your overall shopping Experience due to offers and discounts in kubota
Tractor?
a. Good
b. Average
c. Poor
17) If yes what kind of promotional aspect will you prefer?
a)Cash discount b) Free accessories c)Free servicing d) Any other
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