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Abbs 4TH Sem Project-Mithun M Mohan - 18yucmd115

This document discusses a study on the marketing strategies adopted by Kerala Automobile Limited (KAL), an automobile company located in Kerala, India. KAL was established in 1978 as a government undertaking to manufacture three-wheelers. It initially had a production capacity of 52 vehicles per year but has since developed its own technology for vehicle production. The study aims to analyze KAL's marketing strategies such as advertising, dealer motivation programs, printed media usage, discounts, and other promotional activities to effectively transfer its products from the point of production to consumers. Marketing plays an important role in connecting customers and producers while also contributing to economic growth and stability.
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100% found this document useful (1 vote)
469 views84 pages

Abbs 4TH Sem Project-Mithun M Mohan - 18yucmd115

This document discusses a study on the marketing strategies adopted by Kerala Automobile Limited (KAL), an automobile company located in Kerala, India. KAL was established in 1978 as a government undertaking to manufacture three-wheelers. It initially had a production capacity of 52 vehicles per year but has since developed its own technology for vehicle production. The study aims to analyze KAL's marketing strategies such as advertising, dealer motivation programs, printed media usage, discounts, and other promotional activities to effectively transfer its products from the point of production to consumers. Marketing plays an important role in connecting customers and producers while also contributing to economic growth and stability.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 84

A STUDY ON MARKETING STRATEGIES ADOPTED AT

KERALA AUTOMOBILE LIMITED


Report submitted in partial fulfilment of the requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of

BANGALORE UNIVERSITY

By

MITHUN M MOHAN
18YUCMD115
Under The Guidance of

Dr. RAVI SHANKAR BHAKAT


Associate Professor

ACHARYA BANGALORE B SCHOOL

Bangalore University
2019-2020
DECLARATION BY THE STUDENT

I hereby declare that “A STUDY ON MARKETING STRATEGIES ADOPTED AT KERALA


AUTOMOBILE LIMITED” is the result of the project work carried out by me under the guidance of Dr RAVI
SHANKAR BHAKAT in partial fulfillment for the award of Master’s Degree in Business Administration by
Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not been submitted to any other
university or Institute for the award of any other degree or Diploma or Certificate.

Place: Bangalore Name : MITHUN M MOHAN

Date: Register Number: 18YUCMD115


ACKNOWLEGEMENT

First and Foremost, I thank God Almighty for His divine grace and blessings in
making my project possible. May he continue to lead me in the years to come. It
is my privilege to render my heartfelt thanks and gratitude to our most beloved
Director Dr.H.R VENKATESHA ,for providing me the opportunity to do this
project during my MBA degree. I would like to express my sincere and deep
gratitude to Dr. RAVI SHANKAR BHAKAT Professor Department of
Management. Last, but not the least I thank all my friends and family for their
valuable feedback from time to time as well as their help and encouragement.

MITHHUN M MOHAN

3
BANGALORE UNIVERSITY

Certificate of Originality
(Plagiarism)
Name of the Student :

Registration Number :

Title of Project :

Name of the Guide :

Similar Content (%) Identified :

(Acceptable maximum limit of similarity 25%)

Project ID number(s) in :

Turnitin
TheProject Report has been checked using TURNITIN anti-plagia

software (Attach first page of the originality report as ANNEXURE) and


found within limits as per plagiarism Policy and instructions issued by the
UNIVERSITY/CBSMS.

We have verified the contents of the project report, as summarized above and
Certified that the statements made above are true to the best of our knowledge and
belief.

Signature of the Guide

4
TABLE OF CONTENT

CHAPTER PARTICULARS PAGE NIMBER


NUMBER
LIST OF TABLES 6
LIST OF FIGURES 7
1 INTRODUCTION 10
2 REVIEW OF LITERATURE 19
3 PROFILE OF INDUSTRY 30
AND COMPANY
4 DATA ANALYSIS 54
5 FINDINGS , 75
RECOMMENDATION
SUGGESTION , AND
CONCLUSION
BIBLIOGRAPHY 79
ANNEXURE 80

5
LIST OF TABLES

Table no. Title of the table Page no.

4.1 Gender 56

4.2 Age 57

4.3 Occupation 58

4.4 The advertisements of KAL inspired 59

4.5 Source you come to know about KAL 60

4.6 Using KAL products 61

4.7 After sale service of KAL. 62

4.8 Reason for choosing this company 63

4.9 Have you seen advertisement of KAL 64

4.10 Which autoricksha you prefer 65

4.11 aware about promotion events in KAL 66

4.12 medium made you aware about KAL 67

4.13 engine you prefer mostly 68

4.14 The logo of KAL is attractive 69

4.15 Which product do you buy from KAL 70

4.16 The advertisement of KAL inspired you to buy product 71

4.17 The after sales service of the company is effective 72

6
The pricing policy of KAL is attractive 73
4.18
4.19 The distribution system of KAL is efficient 74

4.20 Would you like to do future business with KAL 75

LIST OF CHARTS

Chart no. Title of the chart Page no.

4.1.1 Gender 55

4.1.2 Age 56

4.1.3 Occupation 57

4.1.4 The advertisements of KAL inspired 58

4.5 source you come to know about KAL 59

4.6 using KAL products 60

4.7 after sale service of KAL. 61

4.8 Reason for choosing this company 62

4.9 Have you seen advertisement of KAL 63

4.10 Which autorickshaw you prefer 64

4.11 aware about promotion events in KAL 65

4.12 medium made you aware about KAL 66

4.13 engine you prefer mostly 67

4.14 The logo of KAL is attractive 68

7
4.15 Which product you buy mostly in KAL 69

4.16 The advertisement of KAL inspired you to buy products 70

4.17 The after sales service of the company is very effective in 71


building brand image

4.18 The pricing policy of KAL is attractive 72

4.19 The distribution system of KAL is efficient 73

4.20 Would you like to do future business with the company 74

8
CHAPTER 1

INTRODUCTION

9
INTRODUCTION

Kerala automobile company was incorporated on 15 March 1978 on a government of


Kerala undertaking with 164 employees. It is located at Aralumoodu once about
15kms away from the capital city of Kerala Trivandrum. The major function of KAL
in manufacture of three wheelers. KAL started operation with 104 employees where
capacity of production was only 52 vehicles per year initial technology for production
of these vehicles was in collaboration with April. Mumbai and 1987 it has been
developed its own technology for production.

Marketing in the process of transferring the goods from the point of production to the
point of consumption. It is the total system of interacting business activities designed
to plan, price promote and distribute want satisfying goods and services to the present
and potential customers. Marketing restricted to the political boundaries of a country
are called domestic marketing. The marketing which closes domestic boundaries is
known on international marketing. Marketing strategies include the advertisement,
dealer’s motivation, incentive schemes, printed media, discounts, deals etc.

Marketing creates some values or utilities to society viz product, place, time and
possession and also the marketing helps in economic growth. Marketing leads to the
development of county. And also the marketing maintains the economic stability by
balancing production and consumption. It helps to removes the imbalances of supply.
Marketing is a main connecting link between customer and produces. Marketing also
provides many importance to individuals firms. Such on increase the sales revenues
and it increase the profit of firms, provides valuable information to top management.
The marketing and also the innovation makes the dynamic of business. A customer
orientation in the center of all the marketing activities. A company attains its
objectives by satisfying customers. Marketing in an ancient art, marketing and a
process a function had originated and developed alone with human civilization.

10
Any business is likely to be more successful. When a strong marketing view point of
philosophy parameters like thinking and guides the decision and actions of everyone
in the business marketing is an exciting, dynamic and contemporary field It influence
us each day in both over roles an provides of goods and services We make such
marketing related decisions on choosing who one customer all. what goods and
services to offer, where to sell our goods and services. What feature to emphasize and
what price to charge. The persons who are providing these types of activities are
utilized by all types of organization and individuals.

The concept of marketing does not remain static. It is changing rapidly today it has
become the most vital function in the world of business. It works on the guide for all
business or none business organizations. It is powerful mechanism which alone can
satisfy the needs and wants of customers at the place and price they desire.

INDUSTRY PROFILE
The Indian auto motive industry after licensing in 1991 has grown at spectacular rate
on an average of 17.6% for the last few years. The global automobiles manufactures
have found huge potential market in no of developing countries. It is not only
manufactures cars, customer vehicle, two wheelers that are in these various countries
in large numbers, but three wheeler market is also quite large in these nations. We can
see innumerate three wheelers running on road of various South East Asian countries
like India, Thailand, Srilanka, Pakistan, Philippines and Nepal.

The Indian automobile industry is tenth largest in the world in an annual production
of approximately 2 million units. India auto industry promises to become the major
automotive industry in upcoming years and industry experts are hopeful that it will
touch to 10 million unit marks.

In India Bajaj is the leader by making 70% of three wheelers. According to figures
released by Society of Indian Automobile Manufactures (SIAM) the cumulative
production data for April-May 2009 shows production growth of 8.28% over April-
May 2008. In May 2009, overall production grew by 6.53% over the same month last
year. The history of automobile reflects an evolution that takes place worldwide. A
single inventor did not invent the automobile, as we know in a single day. In 1769,
the very first self-propelled vehicle was the military tractor invented by the French

11
Engineer and mechanic, Nichdas Joseph Cugnot. The following year he built a steam
powered tricycle that carried 4 passengers. Between 1832 and 1839 Robert Anderson
of Scotland invented the first electric carriage. Then in several years following 1900
new types of vehicles came to dominate the market. Now automobiles are playing a
very important role in our day to day activity.

1.3 THEORETICAL BACKGROUND OF THE STUDY

Marketing is defined by the American Marketing Association as "the activity, set of


institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large”. The
term developed from the original meaning which referred literally to going to market
with goods for sale. From a sales process engineering perspective, marketing is "a set
of processes that are interconnected and interdependent with other functions of a
business aimed at achieving customer interest and satisfaction".

Philip Kotler defined marketing as "Satisfying needs and wants through an exchange
process". and a decade later defines it as “a social and managerial process by which
individuals and groups obtain what they want and need through creating, offering and
exchanging products of value with others.”

The Chartered Institute of Marketing defines marketing as "the management process


responsible for identifying, anticipating and satisfying customer requirements
profitably". A similar concept is the value-based marketing which states the role of
marketing to contribute to increasing shareholder value. In this context, marketing can
be defined as "the management process that seeks to maximise returns to shareholders
by developing relationships with valued customers and creating a competitive
advantage".

The 'marketing concept' proposes that to complete its organizational objectives, an


organization should anticipate the needs and wants of potential consumers and satisfy
them more effectively than its competitors. This concept originated from Adam
Smith's book The Wealth of Nations but would not become widely used until nearly
200 years later. Marketing and Marketing Concepts are directly related.

12
Given the centrality of customer needs, and wants in marketing, a rich understanding
of these concepts is essential

Needs: Something necessary for people to live a healthy, stable and safe life.
When needs remain unfulfilled, there is a clear adverse outcome: a dysfunction
or death. Needs can be objective and physical, such as the need for food,
water, and shelter; or subjective and psychological, such as the need to belong
to a family or social group and the need for self-esteem.
Wants: Something that is desired, wished for or aspired to. Wants are not
essential for basic survival and are often shaped by culture or peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have
the potential to become economic demands.

Marketing strategy is a long-term, forward-looking approach to planning with the


fundamental goal of achieving a sustainable competitive advantage.

Scholars continue to debate the precise meaning of marketing strategy. Consequently,


the literature offers many different definitions. On close examination, however, these
definitions appear to centre around the notion that strategy refers to a broad statement
of what is to be achieved.

Strategic planning involves an analysis of the company's strategic initial situation


prior to the formulation, evaluation and selection of market-oriented competitive
position that contributes to the company's goals and marketing objectives.

Strategic marketing, as a distinct field of study emerged in the 1970s, and built on
strategic management that preceded it. Marketing strategy highlights the role of
marketing as a link between the organization and its customers.

Marketing strategy involves mapping out the company's direction for the forthcoming
planning period, whether that be three, five or ten years. It involves undertaking a 360°
review of the firm and its operating environment with a view to identifying new business
opportunities that the firm could potentially leverage for competitive advantage. Strategic
planning may also reveal market threats that the firm may need to consider for long-term
sustainability. Strategic planning makes no assumptions about the firm continuing to offer
the same products to the same customers into the future. Instead, it is concerned with
identifying the business opportunities that are likely to be successful and evaluates the
firm's capacity to leverage such opportunities. It seeks to

13
identify the strategic gap; that is the difference between where a firm is currently
situated (the strategic reality or inadvertent strategy) and where it should be situated
for sustainable, long-term growth (the strategic intent or deliberate strategy).

The Marketing Concepts and its strategies

The marketing concept is the Philosophy that firms should analyse the needs of their
customers and then make decisions to satisfy those needs, better than the competition.
Today most firms have adopted the marketing concept, and their policies attract the
customer. In 1776 Adam Smith of the Wealth of Nations, defines that the needs of
producers should be considered only with regard to meeting the needs of consumers.
While this philosophy is consistent with the marketing concept, it would not be
adopted widely until 200 years. 73 To better understand the marketing concept, it is
worthwhile to put it in perspective by reviewing other philosophies that once were
predominant. While these alternative concepts prevailed during different historical
time frames, they are not restricted to those periods and are still practiced by some
firms today. Marketing strategy concerns the decisions marketers make to help the
retail sector satisfy its target market and attain its business and marketing objectives,
Price, of course, is one of the key marketing mix decisions and since all marketing
mix decisions must work together, the final price will be impacted by how other
marketing decisions are made. For instance, marketing selling high quality products
would be expected to price their products in a range that will add to the perception of
the product being at a high level. It should be noted that not all companies view price
as a key selling feature. Some firms, for example those seeking to be viewed as
market leaders in product quality, will deemphasize price and concentrate on a
strategy that highlights non-price competition which can help the company avoid
potential price wars that often break out between competitive firms that follow a
market share objective and use price as a key selling feature.

The Marketing Mix: - Retailing sectors form integral parts of the marketing mix i.e.
product, price, Place and Promotions. The 4Ps were designed at a time where business
sold products, rather than services and the role of customer service in helping brand
development wasn’t so well know. Over time, Booms and Pitner added three extended
‘Service mix P’s Particulars, Physical evidence and Processes, and later Participants was
renamed Today, it’s recommended that the full 7Ps of the marketing mix are considered
when reviewing competitive strategies. These Ps helps companies to review

14
and define key issues that affect the marketing of its products and services and is
often now referred to as the 7 Ps frameworks for the digital marketing mix.

• Product: - The First P’s which is the unit that an organization wants to supply in the
market. This product found in two form i.e. tangible object or intangible service.
Consumer goods such as soaps, toothpaste and spoons which are also called tangible
objects while intangible can be services like tourism. This is the most crucial thing in
an organization. ` A Tangible product should have certain characteristics such as
quality goods, attractive images, branded product, warranty, service, ingredients or
contents, manufactured date and the expiry date. In addition, a product should have
distinguishing characteristics that is, unique selling Proposition as well as the
packaging concept and the phenomena of originality play a very crucial role.

• Price: - The Second P which is simply the amount paid by a consumer for the product.
It is the amount that a firm will charge a customer for offering such as discounting, credit,
free or value-added elements the product to him. It’s proves that the 2nd P i.e.
price is crucial part of marketing Mix.

• Place: - The third p that also important part of Marketing mixes. This strategy
becomes an obligation as the items have to be available to the consumers when they
want them. These 75 places might be virtual stores such as Trade channel, segmented
channel, e-mail and e-market, online business while physical stores are like
departmental stores, supermarkets and new modern malls. This encourages and
promotes the consumer to pay heed to the products and offers the place utility to the
customer.

• Promotion: - The fourth p that involves advertising and publicizing of the product.
Promotion has four different elements such as Public relation, advertising, sales
promotion and personal selling. Promotion is work as market communicator and used
as sales promotion. Promotion is started before the product is introduced in the market
since it increases the interest of the customers and gets him eager to find out what the
item is. So, it’s important factors of marketing mix.

• People: - The 5th p that is use for incorporate people as the part of the marketing
mix is also very essential. Individual marketing policy influences on sale products.

15
• Performance/physical evidence - This is another important factor which entails the
performance of the business. This variable is involving product packaging and
financial performance metrics are seen.

• Process: - This refers to the process and methods of offering a service. Such as the
method of handling sales, processing of orders and after – sale service can be very
important elements of the marketing mix.

A 76 final step in developing a marketing strategy and its policies are to create a plan
to monitor progress and a set of contingencies if problems arise in the implementation
of the plan.

Differentiated Marketing Strategy

A differentiated marketing strategy is when a company creates campaigns that appeal


to at least two market segments or target groups. For example, a store can promote a
sale that appeals to people in at least two cities or locations, or a company can market
a product that appeals to women in at least two age groups. Differentiated marketing
strategies can target many more than two segments; shoe companies often create
campaigns that appeal to both men and women in a variety of age groups.

Differentiated marketing strategies can also use different messages in the same
campaign for different segments. For example, a retailer might market low cost to a
budget-conscious segment and product quality to an affluent market segment.

Concentrated Marketing Strategy

A concentrated marketing strategy is targeted to one specific market segment or


audience. For example, a company might market a product specifically for teenage
girls, or a retailer might market his business to residents in a specific town.
Concentrated marketing strategies are often geared for smaller groups of people,
because they are designed to appeal to a specific segment.

Innovative Marketing

Innovative marketing is a set of innovative processes and activities that market and
communicate new products and services to a targeted group of consumers. Innovation and
marketing are the two words that must understand. Innovation in marketing is an activity
that involves new ideas that have a positive impact to a new product and service.

16
Marketing is a process that involves marketers to communicate product and service
information to consumers.

Innovative marketing concept is all about conducting market research into customer
needs, behaviors and trends, develop a prototype or changes within product designing,
launching a new product in a unique place, pricing the product in a unique way,
promoting products in an unconventional way.

Reactive Marketing

Reactive Marketing is marketing or advertising that places your product or service in


the places where people are already actively looking. As you can imagine, there is less
of a gamble of your marketing or advertising efforts converting into a sale if they see
your product or service where they are already looking. For instance, let’s say you sell
hot sauce, and you feel you have the best in the world. You could try to get your
product placed in gas stations because you feel people would come in to pay for gas,
see your product, and buy it. Because after all, it’s amazing. Wouldn’t it be smarter to
get your product in the grocery store, where people are already coming to shop for
food? Where do you think your best conversions could be? Where people need to be
disrupted from paying for gas to purchase a food item or where people are going to
buy food? This may seem like a simple concept, but I cannot tell you how much this
strategy is overlooked. It is overlooked for several reasons, which may include hype
over a new advertising platform, following what the competition is doing, wanting to
see your name for personal satisfaction reasons, not knowing your clients or
customers well enough, or the fact that reactive marketing may take more work.

Full Market Coverage

Here a firm attempts to serve all customer groups with all of the products they might
need. Only very large firms can undertake a full market coverage strategy. Examples
include IBM (computer market), General Motors (vehicle market), and Coca-Cola
(drink market). Large firms can cover a whole market in two broad ways: through
undifferentiated marketing or differentiated marketing.

In undifferentiated marketing, the firm ignores market-segment differences and goes after
the whole market with one market offer. Focusing on a basic buyer need, it designs a
product and a marketing program that will appeal to the broadest number of buyers.

17
To reach the market, the firm uses mass distribution backed by mass advertising to
create a superior product image in people's minds. The narrow product line keeps
down costs of research and development, production, inventory, transportation,
marketing research, advertising, and product management; the undifferentiated
advertising program keeps down advertising costs. Presumably, the company can turn
its lower costs into lower prices to win the price-sensitive segment of the market.

In differentiated marketing, the firm operates in several market segments and designs
different programs for each segment. General Motors does this with its various
vehicle brands and models; Intel does this with chips and programs for consumer,
business, small business, networking, digital imaging, and video markets.32
Differentiated marketing typically creates more total sales than does undifferentiated
marketing. However, the need for different products and marketing programs also
increases the firm's costs for product modification, manufacturing, administration,
inventory, and promotion.

Because differentiated marketing leads to both higher sales and higher costs, we
cannot generalize regarding this strategy's profitability. Still, companies should be
cautious about over segmenting their market. If this happens, they may want to use
counter segmentation to broaden their customer base.

Importance

NEED OF THE STUDY

This study will help to find out the customer’s perception and factors which are
influencing the customer perception of product manufactured at KERALA
AUTOMOBILE LTD and also clearly explain the present scenario of the market. This
study also reveals the opinion and views of customers that will ultimately help in
designing the company’s policies and find out the area of contingencies which will
eventually enable it to have a better foot hold in the market by active optimum
customer’s satisfaction .

18
CHAPTER 2

REVIEW OF LITERATURE

19
2.1 REVIEW OF LITERATURE

Ataman M.B. (2010) simultaneously examine the effect of all 4 P’s on the
performance of mature brands. This study broadens integrated marketing program
research beyond previously typical considerations of advertising and/or price
promotions to also include product and distribution programs and characteristics.

P. Rajan Varadarajan(1984) The hard task of selecting an overall company strategy


for Iong-run survival and growth is called strategic planning. Each company must find
the game plan that makes the most sense given its specific situation, opportunities,
objectives, and resources. This is the focus of strategic planning-the process of
developing and maintaining a strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities.

Philip KOTLER & GARY ARMSTRONG(2005) It is now becoming clear. that


strategy formulation has been emphasized to the neglect of strategy implementation; a
number of recent books and articles have pointed out the need for a balanced
perspective. 1 In an attempt to provide that balance, this article focuses on conceptual
aids for both facets of effective marketing strategy. Beginning with a presentation of
alternative conceptual frameworks that provide insights into marketing growth
opportunities at the product market level, we will then detail real world examples to
show the feasibility of exploiting these opportunities. The article then concludes with
a brief discussion of marketing strategy implementation.

Bruce et al. (2012) construct a dynamic linear model to study the effects of two
marketing program tactics (word of mouth and advertising) on demand for different
products across different launch stages. Controlling for other marketing program
elements, they find that word of mouth and advertising both influence demand for
new products but do so at different stages of the relationship between the company
and consumer.

Slater and Olson (2001). Conversely, marketing strategy implementation concerns


doing it in terms of translating these broad what marketing strategy decisions into a
set of detailed and integrated marketing tactics and accompanying these with
appropriate actions and resource deployments to enact them

20
Whittington (2006). How might such an approach inform marketing strategy research
with respect to better understanding who does it, what they do, how they do it, and
how this shapes strategy decisions, their implementation and outcomes? For example,
how does what CMOs think that marketing strategy is vary across firms and why?
When, why and with what consequences do CMOs use different perspectives and
tools in developing marketing strategy.

Piercy (1998). From this perspective, marketing strategy formulation involves


managers making explicit what decisions regarding goals and the broad means by
which they are to be accomplished in terms of target market selection, required value
offerings and desired positioning, timing,

Dickson et al.(2001). This study identifies and develops dynamic, mental model
mapping techniques for marketing strategy development. The authors contend that in
the MSM process, executives should view the market as a moving video rather than
the common practice of viewing it as a static snapshot. The study provides a
normative process to help marketing executives improve their marketing strategy
decision-making in this way.

Dobni & Brooke, 1998; Ennew et al., 1993) of the contemporary business
environment places a special importance on strategic marketing. Strategic Marketing
provides the expertise for environmental monitoring, for deciding what customer
groups to serve, for product specifications, and for deciding which competitors to
position against. Customer satisfaction

David Aaker (1988), In fact, the only difference is that marketing strategy ( as we
define it) focuses on a limited set of competitive advantages- advantages based on the
performance of the marketing functions ( customers and channels) while corporate
strategy must consider a wider set of business activities and relationships. There is a
natural dilemma between the top-down and the bottom-up approaches to strategic
decision making. Evolution of Management Systems

21
Brown, A., Sommers, & E., 1982 A marketing strategy is made of several interrelated
elements. The first and most important is market selection. which is directly related to
choosing the markets to be served. Product planning includes the specific products the
company sells., the makeup of the product line, and the design of individual offerings in
the line. Another element is the distribution system: the wholesale and retail channels
through which the product moves to the people who ultimately buy it and use it. The
overall communications strategy, employs advertising to tell potential customers about
the product trough radio, television, direct mail, and public print and personal selling to
deploy a sales force to call on potential customers, urge them to buy, and take orders.
Finally , pricing, is an important element of any marketing program and is one of the most
directed marketing elements in the creation of value for shareholders.

Cravens & W., (2000) “understanding the strategic situation confronting an


organization is an essential starting point in developing a marketing strategy”

Dobni & Brooke, 1998; Ennew et al., 1993 of the contemporary business environment
places a special importance on strategic marketing. Strategic Marketing provides the
expertise for environmental monitoring, for deciding what customer groups to serve, for
product specifications, and for deciding which competitors to position against.

Lambin, (1993) This classic approach also makes reference to the “opportunities” (),
these opportunities are those potential possibilities at which the company arrives at
through an external analysis. Strategic Marketing should be centered in the integral
management of products and markets with the aim to reach the objectives previously
set

Piercy, (1990) “business opportunities". Whenever a business opportunity is detected,


we should specify them as “hypothetical opportunities”, which can or cannot to be
certain or true. They can or cannot to be completed, specifying alternative control
systems of these opportunities like the impact matrix.

22
Walker & C., (2003). It is vital as a first step be able to read, to evaluate, to gather
data, to generate systems of information of marketing intelligence, which allow the
marketing manager to decide the markets and the most attractive products for the
company in the future. Without a good analysis of the marketing plan it doesn't exist
the Strategic Marketing Plan Sturdiness and then is not easy to build on it.

Wilson et al., (1997) under a general rule, the word “planning” also appears
continuously in the definitions. Authors talk about planning keeping in mind aspects
like analysis and decisions and the actions which should be kept in mind to determine
future products and markets, as well as attractiveness, market opportunities.

Jain, (1993) The term is associated to new and innovating concepts such as the
approach of 3 c' s since they affect consumers, corporations and competition. The
management of strategic marketing requires and forces managers to make decisions
on the basis of: 1. Where to compete (that is to say, markets, following different
criteria from classification such as territories, segments, styles of life, etc.) 2. How to
compete, where a clear link to the actions of marketing (or operative marketing) and
integrating this with the marketing strategy, and 3. When to compete, giving to
understand that the moment also must be analyzed, being key at the time of obtaining
the best results in the attainment of objectives related to 3 Cs’s.

Day & S., G. (1984) the extent to which the firm exceeds the customer satisfaction
levels of the competition. Marketing strategy contributes to competitive advantage by
combining the customer-influencing strategies of the business into an integrated array
of market-focused actions. Strategic marketing includes the actions of the businesses
aimed at providing customer satisfaction. Strategy development considers business
scope, generic options, competitive advantage and organizational effectiveness.
Customer targeting and assembling the market influencing components of the
business are coordinated among the functions of the business. Strategic marketing
provides the organization’s link with the environment and emphasizes marketing as an
integrated responsibility of the business rather than a specialized function. Achieving
competitive advantage requires teamwork and functional integration

23
Dodge & L., (1995). The planning in time will be crucial to avoid falling in the trap
of speaking of expected intentions or marketing actions which do not get completed
because are not time-related. The terms of time are key to define the degree of
execution of the strategic plan of marketing. Marketing strategies must control
performance. ( Are the proper steps being taken to achieve the objective?), They must
allocate resources directly and indirectly.

Dodson et al., (1988) The strategic marketing is understand most of the occasions as
a process This process begins with a clear specification of the objectives, because if
the company does not know where it wants to go and why could be guided in an
erroneous way. ( if you do not have a clear idea about where do you want to go, you
take the risk of ending in the middle of nowhere).

Drummond, Graeme, Ensor, John, & Marketing., (2001). This section covers the
aspects to take into account when analyzing strategic marketing. Is really important to
follow some key aspects or elements, expressed like having a deep understanding of
the market and its environment. In this case, the marketing manager will have to
delimitate the relevant market, to develop market segmentation, to evaluate segments:
size, growth of demand, and to develop a competition analysis based in the
competitive positioning.

Lambin et al., (1993) Strategic marketing decisions usually have far-reaching


implications. In the words of one marketing strategist, strategic marketing is a
commitment, not an act. These long term implications affect to the balance and the
account of operation of the company of important way since they are connected to
decisions key. For example, a company must decide where it will be in a term of 3 or
5 years.

24
STATEMENT OF PROBLEMS

The research problem chosen for the present study in “ A study of marketing
strategies adopted in Kerala automobiles Limited Aralumoodu” This problem
highlights the competition in marketing and marketing strategies to learn more profit.
The main objective is to satisfy the customers by more services and earning maximum
profit. In this topic, we studied about the problems affecting marketing strategies,
brand positioning strategy, promotional strategies, advertisement strategies and
distribution strategies of Kerala automobiles Limited. An examination of marketing
strategy will review the characterization of strategy and the identification of issues
affecting marketing strategies in Kerala automobiles Limited at their workspace.

SCOPE OF THE STUDY

This study will helpful for automobile vehicle sellers to shape their products and
service for improving customer satisfaction and gain a sustainable growth in
automobile industry. This study makes to ascertain the taste and preference of
customers and how to market the organization.

OBJETIVES OF THE STUDY

1. To study marketing strategies adopted in Kerala Automobiles Limited.

2. To analyze the marketing department and its techniques.

3. To identify if there is any relation between marketing strategy and sales.

RESERCH DESIGN

A research design indicates plan of action to be carried out in connection with the
proposed project work. It is the basic framework which provides guidance for the rest
of the research process. It specifies the method for data analysis. The descriptive type
research is adopted in this study. It helps to describe a particular situation prevailing
within the company.

25
DATA BASE DESIGN

Data collection includes both primary data and secondary data.

A) Primary Data

These data mainly includes the data collected through direct personal interview from
the workers by using an interview and questionnaire.

 Questionnaire

This is important and very popular method of data collection. In this method
questionnaires containing a printed list of questions are prepared and send to the
respondents and a request is made that the questions should be answered and returned.
The questionnaire should be designed in such a way that, it elicits the accurate
information. Moreover it should be short as possible and simple to understand.

 Interview

An interview is a procedure designed to obtain information from a person’s oral


response to oral inquiries. On the other hand, it is a formal meeting between two
people where questions are asked by the interviewer to obtain information, qualities,
wishes etc.

B) Secondary Data

These secondary data are collected from the records, documents, broachers, and
magazines that were kept in the organization. Secondary data, on the other hand, are
those which have already been collected by someone else and which have been passed
through the statistical process. For this research the website of KAL reports etc are
used.

26
MEASUREMENT DESIGN

SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It
refers to the procedure, adopted by a researcher for selecting items for a sample.
Sample design suggest how many items are to be included in the sample.

SAMPLING METHODS:

For this study, the researcher has used convenience sampling method. A convenient
sample is obtained by selecting a convenient population unit.

TOOLS USED FOR DATA COLLECTION

For this study questionnaire is the tool used for collecting data. Personal information
was collected through open ended questions and other data were collected through
close end questions.

STATISTICAL DESIGN

Tool used for analysis

a) PERCENTAGE METHOD

The percentage analysis used to calculate the present of the favorable and unfavorable
responses. The percentage is used for making comparison between two or more series
of data. In this method simple percentage method is used. The formula for percentage
method is as follows:

Number of respondents

Percentage method = *100

Total number of respondents

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b) DIAGRAMMATIC REPRESENTATION

Chart is used for diagrammatic representation. These diagrams represent the


responses in a diagrammatic way.

LIMITATIONS OF THE STUDY

 The information provided by the company assumed to be authentic.


 The difficult problem was collecting data from the customers. Most of
the customers are from other states.
 The sample size was restricted to 50.
 Some of the customers refuse to co-operate.
 Incomplete response from the respondents is the major limitation of the study.

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CHAPTER 3

PROFILE OF THE INDUSTRY AND RESPONDENTS

29
INDUSTRY PROFILE
The Indian auto motive industry after licensing in 1991 has grown at spectacular rate
on an average of 17.6% for the last few years. The global automobiles manufactures
have found huge potential market in no of developing countries. It is not only
manufactures cars, customer vehicle, two wheelers that are in these various countries
in large numbers, but three wheeler market is also quite large in these nations. We can
see innumerate three wheelers running on road of various South East Asian countries
like India, Thailand, Srilanka, Pakistan, Philippines and Nepal.

The Indian automobile industry is tenth largest in the world in an annual production
of approximately 2 million units. India auto industry promises to become the major
automotive industry in upcoming years and industry experts are hopeful that it will
touch to 10 million unit marks.

In India Bajaj is the leader by making 70% of three wheelers. According to figures
released by Society of Indian Automobile Manufactures (SIAM) the cumulative
production data for April-May 2009 shows production growth of 8.28% over April-
May 2008. In May 2009, overall production grew by 6.53% over the same month last
year. The history of automobile reflects an evolution that takes place worldwide. A
single inventor did not invent the automobile, as we know in a single day. In 1769,
the very first self-propelled vehicle was the military tractor invented by the French
Engineer and mechanic, Nichdas Joseph Cugnot. The following year he built a steam
powered tricycle that carried 4 passengers. Between 1832 and 1839 Robert Anderson
of Scotland invented the first electric carriage. Then in several years following 1900
new types of vehicles came to dominate the market. Now automobiles are playing a
very important role in our day to day activity.

WORLD SCENARIO

Over the years, the world has been witnessing fantabulous development in the sector
of automobile industry. With their advanced engineering techniques the major auto
giants like Mercedes, Ford motors, General motors, Audi, Hyundai etc. have come
with some of the most sophisticated that a human mind could have imagined just a
few years ago. The Global Automobile Manufactures have found huge potential
market in a number of developing countries. It is not only the cars, consumer,
vehicles

30
and two wheelers that are sold in these countries in large numbers, but the three
wheeler market is also quite big in these nation.

The innumerable three wheelers running on the roads of various Southeast Asian
countries like India, Thailand, and Nepal etc. There are a number of reasons that have
resulted in to the proliferation of the three wheelers in umpteen countries. Three
wheelers are quite economical in terms of manufacturing and maintenance. They have
earned huge popularity to their easy manufacturing capabilities through narrow lines
that are prevalent in most of the developing countries. It is not that three wheelers are
used only in the developing nations.

INDIAN SCENARIO

The Indian automotive industry after liberalization in 1991 has grown at a spectacular
rate on an average of 17.6% for the last few years. Global automobile manufacturers
have found huge potential market for their products in India. Apart from passengers’
cars, customer vehicles and two wheelers, a three wheelers market has immense
future prospects in South Asian countries.

The automobile industry is the tenth largest in the world having an annual production
of approximately 2 million units. Indian auto industry promises to become the major
automotive industry in the upcoming years and industry experts are hopeful that it
will touch the 10 million unit mark within 10 years.

The Government of India’s liberalization policy of 1991 made possible the


transformation of automobile industry through modernization and technological up
gradation. Automobile Products of India (API) established the first three wheeler
industry in India in 1961. But the three wheelers market is virtually monopolized by
Bajaj Auto LTD. This was established in the 1970’s. KAL was launched in 1978.
Commercial production was started from 1984. Now it is having a steady position in
the three wheeler market.

31
AN OVERVIEW OF THE INDIAN AUTOMOBILE INDUSTRY

Starting its journey from the day when the first car rolled on the street of Mumbai on
1898, the Indian automobile industry has demonstrated a phenomenal growth to this
day. Today, the Indian automobile industry presents a galaxy of verities and models
meeting all possible expectation and globally established industry standards. Some of
the leading names echoing in the Indian automobile industry include Maruti Suzuki,
Tata motors, Mahindra, Hindustan motors in addition to a number of other.

During the early stages of its development, Indian automobile industry heavily
depended on foreign technologies. However over the year, the manufactures in India
have started using their he native own technology evolved in the native soil. The
thriving market place in the country has attracted a number of automobile
manufacturers including some of the reputed global leader to set their foot in the soil
looking forward to enhance their profile and prospects to new heights. Following a
temporary setback an account of the global economics recession, the Indian
automobile market has once again picked up a remarkable momentum witnessing a
buoyant sale for the first time in its history in the month of September 2009.

The automobile sector of Indian is the seventh largest in the world. In a year, the
country manufacturer about 2.6 million cars making up an identification chunk in the
world’s annual production of about 73 million car in a year. Recently, the automobile
giants of India including General Motors, Honda and Hyundai have declared
significant expansion plans.

POTENTIALS OF INDIANS AUTOMOBILES INDUSTRY

There is a very stiff competition in the automobile industry segment in India. This has
helped many to realize their dreams of driving the most luxuries cars. During the
recent past, a number of overseas companies have started grabbing a big chunk of the
market share in both domestic and export sales. Every new dawn in India with some
new launches by active players in the Indian automobile arena. By introducing some
low cost cars, the industry had made it possible for common men to buy cars for their
personal use.

While the automobile industry in India is the ninth largest in the world, the country
emerged as the fourth largest automobile exporter on the globe following Japan, South

32
Korea and Thailand, in the year 2009. Over and above a number of automobile
manufactures based in India have expanded their operation around the globe also
giving way for a number of reputed MNCs the enthusiastically invest in the Indian
automobile sector.

During the current fiscal year, the Indian automobile industry rode high on the
resurgence of consumer demand in the country as a result of the government fiscal
stimulus and attractively low interest rates. As a result the total turnover of the
domestic automobile industry increased by about 27 percent.

In may 2009 commercial vehicles sales fell by 14.77% compared to may 2008. Three
wheelers sales recorded a growth rate of 3.53% in April 2009. In the month of May two
wheelers sales registered a growth of 12.45%. In May 09 however, overall export grew
by 5% with two wheelers and passenger vehicles segment registering positive growth.

INDIAN THREE WHEELER INDUSTRY

An Auto rickshaw is a vehicle for hire that is one of the chief modes of transport in
India as well as Pakistan, Nepal, Bangladesh and many other countries. It is also
called motto-taxi. Moto in Peru and Central America as Bajaj in Indonesia.

Auto rickshaws are one of the most popular means of public transportation in urban
India not restricted to cities. They are also prevalent in large numbers in villages and
in the country side. Modified version of auto rickshaw fitted with carrier commonly
known as pick van or carrier auto are used for good traffic.

As a mode of transport, auto rickshaw is turning out to be a major employer in India.


All major nationalized banks of India offering loans to buy one under self
employment schemes.

EXPORTS OF AUTOMOBILE INDUSTRY

Today, India is among the world’s largest producers of small cars. The New York
times has rated India as a very strong Engineering base with an incomparable
expertise in times the arena of manufacturing a number of low-cost, fuel-efficient cars
has encouraged the expansion plans of manufacturing facilities of a number of
automobile leaders like Hyundai motors, Toyota, Volkswagen and Suzuki.

33
th
On 22 February 2010, Hyundai motors exported its 10,00,000 car; the feat was
achieved by the firm in just over 10 years. Hyundai Motors is the largest passenger
car exporter. In the similar lines, general motors’ have announced its plans to exports
not less than 50,000 cars made in India by the year 2011. In yet other proposal, ford
motors is setup a manufacturing facilility costing about US$500 million in India with
an annual capacity of 250,000 cars. The firm has stated that the facility will play a
major part in its strategic plan to make India a hub for its global production business.
In yet another significant move, fiat motors has stated that it will source a big volume
of auto components from India.

VARIOUS SEGMENTS OF THE INDIA AUTOMOBILE INDUSTRY

Motor cycles manufactures makes up the major share in the two wheeler segment of
the India automobile industry. About 50% of the motorcycles are manufactured by
Hero Honda. While Honda manufactures about 46% of the scooters, TVS produces
82% of the mopeds running on the Indian roads.

About 40% of the three wheelers manufactured in India are used for transporting goods
and manufacturing 40% of the vehicles sold in the Indian market. On the other hand,
Bajaj has emerged as the leader in manufacturing three-wheelers used for passenger
transport in India. Like many other nation India’s highly developed transportation system
has played a very important role in the development of the country’s economy.

COMPANY PROFILE

HISTORY

Kerala Automobiles Limited (KAL) Incorporated in 1978 as a Government of Kerala


undertaking is setup in the picturesque back drop, 16 kilometers south of
Thiruvananthapuram in a tiny village called Aralumoodu in Neyyattinkara Taluk. The
company manufacturers Three Wheelers [Diesel, Petrol, LPG and CNG] suitable for
passengers and good traffic in the brand name of Kerala which are considered as the
most Eco-friendly vehicles. It is housed in 20 acres of land.

34
The present product range comprises of Auto rickshaw (Drive away Chassis & Fully
Built), Pickup/ Delivery Van, Pollution free CNG/LPG fitted Auto and Load carriers
etc. The strong, highly motivated work force in the Technical and Management cadres
are working hand in hand for the progress of the Company. The ancillary units
developed by the Company around the factory complex provide livelihood for
hundreds of families.

Since commencement of production in 1984, the Company has manufactured and


marketed more than 1, 00,000 Three Wheelers. KAL has distinguished itself as a force
worth reckoning in the Automobile industry in India. The Company has also exported
a number of Three Wheelers to Bangladesh, Sri Lanka, Nepal, Sudan, Botswana,
Nigeria, South Africa, Madagascar, and Guatemala (Central America). The Company
could turn the corner for the first time in 1993-94 and continued to keep the same
trend at a higher level. The acceptability of KAL Three Wheelers in the Third World
countries speaks for its utility and quality. KAL is also manufacturing sophisticated
components to be used in various space programs of ISRO (VSSC, LPSC, and IISU).

Kerala Automobiles Limited started its operations with 164 employees where the
capacity of the production was only 52 vehicles per year. Initial technology for
production of three-wheelers was in collaboration with the Automobile Products of
India (API), Mumbai and from I987 it has developed its own technology for
production. In 2004-2005 company has registered an annual profit of about 220 lakhs.

The Company is getting all kind of support from the Government of Kerala, without
which it would not have been possible to achieve the present level of promising state of
affairs. KAL was awarded with ISO Certification in 1998 itself and keep hold of the same
ever since by updating the quality management system appropriately to conform with the
amendments in the ISO Standards. Currently KAL is certified as ISO 9001:2008
compliant in recognition to its strong customer focus, the motivation and implication of
top management, the process approach and continual improvement. It is the unflinching
faith of our customers, which has powered KAL into the path of progress and looking
forward for continued patronage at a higher rank.

At present KAL is a less profit making organization and the company is concentrating
on Diesel engine version only. As with any public sector Automobile manufacturing
establishment, certain gestation period was there along with many ups and downs. It

35
enjoys a market share of about 4%. The company has well disciplined and motivated
employees. In India it mostly concentrates on northern part. KAL has three
warehouses located at Delhi, Sonepat and Ludhiana.

Date of incorporation : 15th march 1978


Address & registration : Athiyanoor, Aralumoodu, TVM [Dist];
695123

Phone & website : 91-471-2229100, 2229111, 2229119

www.keralaautomobilesltd.com

MISSION
“ To provide value added service and product to the customers and to earn reasonable
profit.”

VISION

“ To become top Three Wheeler automobile manufacturer in 10 years.”

MOTTO OF KAL

“Streamlining production process by elimination of shortages and wastages”.

MAIN MARKETS

 Haryana
 Utter Pradesh
 Rajasthan
 Uttaranchal
 Punjab
 Gujarat
 Delhi

MAJOR COMPETITORS OF KAL

 Bajaj automobile ltd

36
 TVS
 Mahindra

QUALITY POLICY
“The management and employees of KAL are committed to develop, manufacture,
market and service three wheelers, enhancing customer satisfaction through a process
of continual improvement of its quality management system.”

PRODUCTION PLANT
Kerala Automobiles Limited (KAL)'s state-of-the-art factory is equipped with the
most modern CNC machines to ensure dimensional accuracy of each component
being produced. The factory has highly sophisticated testing facilities to maintain
vigorous quality control at every stage. The proof of the high quality standards
attained can be appreciated from the fact that KAL has the distinctive privilege of
supplying critical components to the Indian Space Research Organization (ISRO),
for India’s sterling space program.

PETROL MODEL
 P1- Petrol Auto Rickshaw-Regular Three Seater.
In this model was the first born member of Kerala automobiles ltd group. Production
of this model was started in 1984. It has the advantage of easy handling and has a fuel
efficiency of 24.4 km/l.

 P2-New Look Auto Rickshaw


It was started in 1988. It was a 175cc petrol engine, which had a fuel efficiency of
24.2km/l. It was mainly manufactured for export purpose with more storage space,
better riding comfort etc.

 P3-Petrol Delivery Van

37
It was started in 1987. Its chassis is provided with closed loading tray. It was easy to
handle even in congested traffic condition.

 P4-Petrol Pick Up Van


The production of this model was also started in 1987. It was usually used for
transporting items such as food materials, construction materials.

 P5-Petrol Three Wheeler Chassis


The production of this model was started in 1985. Its production was stopped due to
non compliance with other vehicle. It has an option of both closed tray and open tray.

DIESEL MODEL

 D1-Diesel Pick Up Van


The production of this model was started in 1984. It is similar to petrol pick up van. It
has a petrol option and has a mileage of 35 km/l.

 D2-Diesel Auto Rickshaw


The Production of this model was started in the year 1988. It has an option of both
petrol and diesel. Its mileage is 35km/l.

 D3-Diesel Auto Trailer


The production of this model was started in 1988. This was build with the aim of
transporting heavy cargos. The loading tray of this model is long and bigger.

 D4-Diesel Chassis of KAL comes in three models

 4360 chassis-self starter.


 4325 chassis-shorter rope start.
 Six seater-provided with layered chassis.

 D5-Diesel Six Seater Auto Rickshaw Jumbo

38
This model often referred as diesel limousine three wheeler. The chassis is two layer
additional shock absorbers are provided for comfort and its mileage is 35km/l.

 D6-KeralaMX 400
This is the model which has unique features like tires, strong universal joint and axle
assembly, high fuel efficiency, hydraulic breaking system, upgraded gear and G1400
engine. The fuel efficiency of this model is 30km/l in standard conditions.

NUMBER OF EMPLOYEES
Numbers of employees working in the KAL under various departments are as follows.

DEPARTMENT NO. OF
EMPLOYEES

Marketing Department 6

Accounts Department 10

Purchase Department 7

HR and Administration 18

Skill Development and Reconstruction 2

Service and Spares Department 3

Service & Spares Department 3

Design and Drawing Department 2

Planning Department 1

Machine Shop 38

Fabrication Department 18

Assembly Department 15

Painting Department 3

Quality Assurance Department 7

39
Stores Department 10

Maintenance Department 9

General 5

Liaison office 1

Total Staff 155

ORGANIZATIONAL STRUCTURE

A Board of Directors (BOD) consisted by Government of Kerala manages the


company unless otherwise determined by the Government. According to the
instructions from the Government the number of directors should not be less than 2
and not more than 9, appoints all the directors including the full time Managing
Director (MD). However need not be share holders.
The organizational structure of the company is pyramid in shape and Board of
directors is on the top. They mainly frame the policies required for the company to
achieve its missions, vision and objectives. The MD shall execute the work through
the managers in different departments. The General Manager be in charge of the
company when MD is not present.
There are mainly 20 departments working in the organization. The top position is held
by Board of Directors. Under BOD, there is a Chairman and a Managing Director.
There are about 159 employees working in the organization and about 35 apprentices
and about 11 trainees are also present.

BOARD OF DIRECTORS

The board of directors and the MD are appointed by the Government of Kerala. The
board members and the MD may be different persons at different times according to
the ruling government.

40
The BODS consists of following persons:

1. The chairman.

2. The managing director.

3. The representatives from trade union.

4. The representatives from banks where KAL taken loan.

5. Representatives from finance department.

6. The consulting engineer.

FUNCTIONAL AREA/DEPARTMENT

KAL has various departments for carrying out every activity smoothly. The various
departments of the company are shown below. In KAL various departments are,
Administration department, HR department, Marketing, Service and Spares department,
Accounts department, Purchase department, Vendor department, Sub contract department,
Planning department, Quality control department, Maintenance department, Stores
department, Machine shop, Fabrication, Assembly and Painting department.

Administration department

HR department

Marketing, service and spares


department

Accounts department Managing

Purchase department

Vendor development
department

Sub contract department


Various Departments
41
Planning department
HUMAN RESOURCE DEPARTMENT

HR department is important branch of business management. It constitutes the key to


the managerial actions and its success. HRM comprises those activities that have
aligned by a separate HRD department under the charge of a staff and service
manager known as HRD manager. Human resource is the most important asset of any
organization. HRM is all about how to induce people to make an organization by
getting the people who can make an organization, enabling those people to acquire
required capabilities to make a successful organization and motivating them to
contribute their resources continuously for running the organization successfully. The
functions of HR department:

(i) Recruitment and Selection


(ii) Training and Development

(iii) Wages and Salary Administration

(iv) Promotion Opportunities

(v) Leaves, Holidays Allowances, Benefits & Incentives

(vi) Performance Appraisal

(vii) Industrial Relations

(viii) Disciplinary Procedure

(ix) Grievance Procedure

 ADMINISTRATION DEPARTMENT

Effective administration plays an important role in the healthy functioning of an


organization. The department is involved in managing and maintaining the company
vehicles, monitoring their running, dispatch of letters, control of canteen and day to
day office matters. The administration department is also responsible for the control
of reception and security wing.

42
FUNCTIONS:

 MANAGEMENT OF CANTEEN FACILITY:

Running and maintenance of canteen comes under the control of Administration


Department. There is a canteen committee which controls the overall functioning of
the Canteen.

It consists of
 Manager(Administration) as chairman of the committee

 Four employee representatives.

 A trade union member.

 Four management representatives.

The contract of canteen is for one year.

 PROVIDING CONVEYANCE FACILITIES:

A bus is provided for conveyance of the staff. It is free of charge. The bus runs
between Thiruvananthapuram and Neyyattinkara on all shifts.

 MEDICAL ASSISTANCE:
KAL provides supplementary Medical Assistance to its employees. Under this scheme,
an amount of RS 75,000 will be paid as advance for treatment with approval of
management. KAL also provides one month salary as medical reimbursement. KAL has
accidental insurance scheme of Rs 20000 for employees and their family members.

 LICENSE RENEWAL:

The Administration Department is concerned with the renewal of factory license. The
renewal fee for the license is Rs 75000. It is also concerned with the renewal of license
from the Pollution Control Board in connection with water pollution and air pollution.

 SAFETY MEASURES:

43
For safety, Boots, Gloves, Masks, Goggles etc are provided to workers. Company has
an Auto Ambulance for workers in case of emergencies. Fire extinguishers are also
placed in various locations.

 WELFARE FUND:

KAL has a welfare fund with contributions from employees, management and other
sources. Company has a welfare committee with representatives of employees and
equal number of representatives from management. Committee looks after the
administration of welfare funds and welfare measures.

 INCENTIVES AND ALLOWANCES:

In addition to wages and salary, an incentive is also provided to the employees based
on production of total vehicles per month.

 CONTROL OF RECEPTION AND SECURITY WING:

Administration department also looks after the working of the reception and security
wing.

 ESTATE COMMITTEE:

It comes under the control of Administration Department, which deals with the
management of natural property of the company such as Coconuts, Mangoes, and Jack
Fruits etc.

 PROCUREMENT AND MAINTENANCE OF FURNITURE:

It is bought and supplied by the Administration department. The repair work is also
done by this department.

 DISPATCH OF LETTERS:

Every outgoing letter is sent via Administration department. There is a machine called
‘Franking Machine’ to seal the letters, which is issued from the postal department.
The parcel weight is measured and the respective stamp rates are printed.

44
 PLANNING DEPARTMENT
Planning lays down the basis for all other managerial functions of the management. All
major functions are performed within the framework of the plans laid down by the
planning department. This department makes decision regarding production. Planning
provides the basis for all other functions. The production department after consultation
with the marketing department and the top management fix the monthly production
targets. The targets will be sent to production department for implementation. The various
divisions of the production department has to prepare a daily production report and it
should be given to the planning department for verification. If any default arises, planning
department has to take care of these situations by taking corrective action after discussion
with Manager (Production). The result will be sent to the Managing Director.

FUNCTIONS:
After the information is received from the marketing department and top management
regarding the monthly product requirement, the planning department fixes the
monthly production target.
In KAL, planning takes place in 3 phases:
 Planning phase

 Executing phase

 Control phase

On the basis of monthly production target, planning department prepares a production


plan. Copies of the production plan are sent to concerned departments. Production
Plan consists of all critical information about allocation and utilization of machines
and materials required for production. Incoming raw materials for production are
collected. From stores and distributed to different departments. Planning department
checks all the materials issued from stores to different departments concerned with
production. Planning Department issues work orders on a quarterly basis to different
production departments. The actual production is verified against the already prepared
schedule. If there is any deviation, cause for the same is found out using Root Cause
Analysis or Fish Bone Diagrams. Shortage lists are prepared and sent to the materials
department for initiating necessary action.

45
Planning department also performs the controlling function. The copies of day to day
production performance are sent to planning department to check whether production
is in accordance with the planned level. If not, corrective actions are taken.

 PURCHASE DEPARTMENT
Purchase Department ensures the availability of right material at right time at right
place at the right quantity. The department is under the control of purchase manager.
All the activities regarding purchase are undergone in this department. The purchase
of materials from vendors is undertaken by the Purchase Department and Purchase
Department rates the vendors and evaluates them on the basis of parameters like
quality, price and time. The department is following ABC (Always Better Control)
analysis for purchasing of products. The Purchase Department also has a PDCA cycle
of activities. The responsibility for ‘A’ category materials lies with materials
manager, ‘B’ category with Asst Manager and ‘C’ is with Senior Engineer (Purchase).
There is a purchase committee formed for the purpose of bulk purchase of materials.
This department also uses vendor rating and vendor evaluation techniques. If the
rating of the vendor is ‘C’ grade, the department will encourage the vendor to
promote to ‘B’ grade. If vendor is not living up to their expectations, the company
will delete the vendor name from the vendor list.

 SUPPLIERS DEPARTMENT
In order to find out good and fair source of supply of materials, a supplier
development department is functioning in KAL. The department functions under the
control of Manager (Materials).

FUNCTIONS:

 Strive towards the development of existing suppliers and identify their


problems, then come out with optimal solutions.

 Develop fresh parties for items requested by R & D department.

 Identify quality suppliers from new suppliers.

 Provide alternative solutions for quality products.

46
 SUB CONTRACT DEPARTMENT
In KAL, many of the items such as proprietary items, fasteners etc are outsourced
from external suppliers. This outsourcing function is handled by Sub Contract
Department. Materials manager is in charge of Sub Contract department.
 STORES DEPARTMENT
Stores Department is mainly concerned with receipt of material and their storage.
Thus Stores department is mainly concerned with inventory management. Stores
Department comes under Manager (Materials). KAL follows ABC analysis for
inventory storage. According to the nature of items stores are kept as,
Store 1: Hardware items, Painting items, Rubber parts, Gear items etc.
Store 2: Bearing components, Location assembly, Battery.
Store 3: Casting, Forging, Sheet metal items.
Store 4: Raw materials, Pipes

FUNCTIONS:

 Rejected materials will be returned to the party within 45 days after


clearing provisional GRN. Otherwise the item will be diverted to the scrap
yard without any further information

 Reduce the stock of nonmoving items at 10% per year.

 Control the inventory as per the level fixed for max and min stock for
critical items such as Casting, Forging, Pipes, rods etc.

 Improve the storage facility for bearing, battery, rear back plate
assembly, tool items etc.

 Stores department also follows PDCA cycle in its activities.

 MAINTENANCE DEPARTMENT
Maintenance Department functions under the control of Manager (Production). This
department undertakes the works of electrical, mechanical, and civil maintenance.
The maintenance procedure is done as a team work of supervisors and technicians.
Maintenance work, which can’t be settled by the department, is done by licensed
contractors and outside experts.

47
FUNCTIONS:
There are mainly two types of maintenance conducted at KAL
 Preventive Maintenance

 Breakdown Maintenance

(i) PREVENTIVE MAINTENANCE:


Preventive Maintenance is carried out on a scheduled basis to increase the lifespan of
the machine. It is classified as daily, weekly, quarterly and yearly maintenance.

(ii) BREAK DOWN MAINTENANCE:


Break down Maintenance is carried out at the time of breakdown of machines, when
the breakdown of machines is informed by the concerned trades’ man. If a number of
machines are broken down at the same time, then the machines are prioritized on the
basis of loss due to breakdown per hour.

 MARKETING DEPARTMENT
An efficient Marketing Department is inevitable for the success of every organization.
In KAL, marketing department is under the control of DGM. The activities of this
Department are directly reported to the MD. This department identifies the customers,
interacts with them and finds out their needs and thus figures out the market potential
of various products. Marketing management is a pre requisite for the successful
operation of any business enterprise. Marketing department shall be responsible for
the after sales service activities of the company. The marketing department shall
maintain a register showing details of the warranty claims against each vehicle.
Marketing department determines the needs of the customer and sets out the pattern of
production of goods and service necessary to satisfy their needs.

FUNCTIONS:

The Marketing Department ensures that the company’s products are
dispatched to various outlets, taking into consideration the demand for various
types of vehicles at the various outlets.

Appointment of dealers

48
 Preparation of sales budget.

 Payment to dealers/ agents

 Responding to enquiries

 Preparation of Sales and Dispatch plan

 RESEARCH & DEVELOPMENT DEPARTMENT

This department designs the products and provides information about various items,
which the company can produce. This department is under the control of Deputy
General Manager.

A well-developed R&D section is very necessary for a manufacturing company to


survive in the market by developing innovative products which aims at capturing the
market. In KAL, there is also a R&D department. The new product to be launched
soon is a Rear Engine Vehicle. R&D department also provides information about
various items which are necessary for the manufacture of the company’s products.

MAJOR ACHIEVEMENTS
 Introduction of Diesel engine three wheeler

 Introduction of Six seated Diesel engine three wheeler

 Development of aerodynamic front show

 Introduction of TRIMO which is a three wheeler micro car with round


steering. It showed a major market potential but was not able to commercialize
due to financial, legal, and bureaucratic constraints.

 Design, development and introduction of diesel vehicles with


hydraulic braking system.

 QUALITY ASSURANCE DEPARTMENT


Quality control refers to systematic control of various factors that affect the quality of the
end product. There is a well-functioning Quality Assurance Department in KAL which
functions under the control of Deputy General Manager. The main objectives of the
department are cost reduction, quality checking and providing all suggestions for the
system improvement. The ISO series of quality management system is adopted in

49
KAL. Quality of finished goods as well as the incoming materials is strictly checked
and maintained by quality assurance Department. KAL is an ISO: 9001: 2008
certified company.

OBJECTIVES
The main objectives of this department are:

Cost control.

Wastage control.

Reduce defects of implant items by 10%.

Create a culture among the employees of the company towards “Total Quality”
concepts and higher productivity through planned training for all employees.


Detect and prevent nonconformance defect as early as possible and eliminate
them through appropriate change to the quality management system.

To reduce the percentage of vehicle with brake pedal problem from 30% to 5%.

To reduce the defects of following components in the production department to
less than 10 %.

 SERVICE & SPARES DEPARTMENT


Service & Spares Department comes under the control of DGM. KAL is providing
quality service to the customers. The main functions of this department include.

FUNCTIONS:

 Collect feedback report from marketing department about products.

 Rectification of field complaints.

 Framing customer satisfaction report.

 Pre delivery inspection.

50
 GENERAL DEPARTMENT

All the Government letters are received by this department. All the main decisions are
taken by this department and corporate level management exists in this department. All
the emails and websites are checked by this department and the Managing Director. This
department is under the direct control of the Managing Director. The General Department
consists of mainly five levels. There is a Managing Director, one Senior Engineer, one
Senior Computer Operator, one Higher Grade Driver, and one Helper.

 PRODUCTION DEPARTMENT
KAL has the capacity of producing 1000 units/month. But due to some financial crisis
they can produce only 100-200 vehicles now. Production Department is mainly
concerned with the manufacture of various parts of vehicles.The company also uses
output raw materials for production instead of the necessary item that was produced
by KAL. On the basis of monthly production target, the planning department makes
allocation and distribution of materials to different production department. The entire
work flow is divided into three major processes:
 MOP (management oriented process)
On the basis of monthly production target, planning department takes decision about
the allocation and distribution of materials to different production departments
achieve the targeted profit, required steps are taken by them. It is concerned with
providing goods of good quality at a competitive price. For this purpose the quality
assurance department is established.
 COP (customer oriented process)
Deals with making the customer satisfied by providing all the services they require.
Various departments are covered under COP.
 SOP (support oriented process)
It is concerned with providing necessary services that supports the MOP and COP.
SOP do also play an important role in the organization. Unless SOP is not working at
100% efficiency, it is not possible to provide quality goods on time. SOP covers
various departments like – stores, HRD, QA etc.
There are mainly six sub departments present under the production department

 Machine Shop

51
 Heat Treatment

 Tool Room

 Fabrication Shop

 Assembly Shop

 Paint Shop

(i) MACHINE SHOP DEPARTMENT


Parts which are required for assembly are produced here. There is a tool room in the
section that stores the tools that are required for the production. As per the planned
schedule, the stores issue the materials required for the production in a weekly basis.
Chamfering, Thread cutting, Turning, Milling, Boring, Tapping etc. are the main
functions of the machine shop. This shop is under the control of Manager
(Production). Under him there is one Engineer and one Junior Engineer. (ii) TOOL
ROOM DEPARTMENT
The storage & maintenance of tools are done at the tool room department. The
consumable tools require frequent maintenance. Tool Room looks after the fabrication
of components for VSSC and KELTRON.

(iii) HEAT TREATMENT DEPARTMENT


Here the components are heat treated. The heat treatment section mainly consists of
muffler furnace, gas carburizing furnace and induction hardening. These processes are
done in high temperature. The materials for heat treatment are supplied from machine
shop. They are brought using pallet trucks. Since the temperature is high, the manual
handling of material is impossible. For this, a power hoist is used. Because of this,
material handling system in this section is perfect. The tempered and hardened units
are tested in quality assurance department.

(iv) FABRICATION DEPARTMENT


Fabrication works of the components are done under this department. Body
fabrication of vehicles, framework and welding are done here. Four types of welding
are done here. (v) ASSEMBLY DEPARTMENT
Gear Box Assembly, Engine Assembly and Vehicle Assembly are done in this
department. The Production Manager heads this section and one Senior Engineer comes

52
under him. There is a chassis assembly line in this section. Assembly section holds
sub assembly, Dome assemblies and Engine Assembly. (vi) PAINTING
DEPARTMENT
The painting works of finished goods are done here. Two types of painting are mainly
done here. They are
 Spray painting
 Dip painting

Before painting, the products are sent to the pretreatment section. The pretreatment is
done to avoid rusting. The products after pretreatment are sent to the painting booth.
Small components are dipped in to the paint and big components are spray painted.
After painting the components are sent to the heater for drying. The head of this
department is Manager (Production). Under him there is a Junior Engineer and seven
trade’s men in this department.
 FINANCE/ACCOUNTS DEPARTMENT
Money is the lifeblood of any organization as it is required to purchase raw materials
and machines, to pay wages and salaries etc. The financial statement of the company
is prepared under the conventional accrual basis as a going concern complying with
the accounting standards prescribed under Companies Act 1956. Effective finance
management depends upon the efficiency of procedures and practices adopted by the
enterprise. It is the duty of the finance department to maintain all statutory books and
registers required under the Companies Act. If any entry is to be rectified, it can only
be done through an adjustment document. This ensures security of documentation
against any accidental errors or manipulation.

There is lots of function associated with the functioning of finance department. The good
received note (GRN) issued by store department are received by the purchase department
and sent to finance department to for preparing the voucher. It analyses the supplier
account. Regarding the sales finance department is associated with preparation of sales
tax return, payment of incentives, warranty claim settlement, attending sales tax hearings,
verification of accounts. It receive, withdraws, payment of cash to the employees. It
settles the salary, payment of retainer fee, physical verification of cash, and payment of
vouchers. The finalization of department functions includes analysis of ledger,
rectification of errors, assisting internal audit, preparation of annual report.

53
CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

54
1. Gender of the respondent
Table 4.1

SL NO Parameter Number of Percentage of


respondents respondents
1 male 42 84

2 female 6 12
3 total 50 100

Graph 4.2

Percentage of respondents
90
80

70

60

50 Percentage of respondents

40
30

20
10
0

male female

INTERPRETATION: In this above chart shows the 88% where male and the
13% where female

55
4.2 AGE OF RESPONDENT

Table 4.2

SL NO Parameter Number of Percentage of


respondents respondents
1 15-20 7 14

2 21-25 8 16

3 26-30 23 46

4 Above 30 12 24

5 total 50 100

Primary source

Chart 4.2

Percentage of respondents
50
45
40
35
30
25
Percentage of respondents
20
15
10
5
0
15-20 21-25 26-30 Above 30

INTERPRETATION: In the above chart we can show that the 46% where 26-30
age groups and 16% where 21-15 age group, and 14% where 15-20 age groups and
24% where above 30 age groups

56
4.3 OCCUPATION OF RESPONDENT

Table 4.3

Occupation

SL.NO Parameter Number of Percentage of


respondents respondents
1 student 5 10

2 business 18 36

3 Govt employee 10 20

4 Private 17 34
employee
5 total 50 100

Primary source

Chart 4.3

Percentage of respondents
40

35

30

25

20
Percentage of respondents
15

10

0
student business Govt Private
employee employee

INTERPRETATION: In the above chart we can see that the 34% where private
employees, 36 % where business, 20% where govt employees, and the 10%
where students

57
Table 4.4

The advertisements of KAL inspired you to buy products

Sl.NO Parameter Number of Percentage of


respondents respondents
1 Strongly agree 2 4

2 Agree 23 46

3 Neutral 14 28

4 Disagree 7 14

5 Strongly disagree 4 8

6 total 50 100

Primary source

Chart 4.4

Percentage of respondents
120

100

80

60
Percentage of respondents

40

20

0
Strongly Agree Neutral Disagree Strongly total
agree disagree

INTERPRETATION: In the above chart we can see that 46% where agree, 28%
where neutral, 14% where disagree, 8% where strongly disagree, and the 4%
where strongly agree.

58
Table 4.5

From which source you come to know about KAL

Sl.No Parameter Number of Percentage of


respondents respondents
1 NEWS PAPER 23 46

2 ADVERTISEMENT 10 20

3 SOCIAL MEDIA 0 0

4 MOUTH PUBLICITY 17 24

6 TOTAL 50 100

Primary source

Chart 4.5

50 PERCENTAGE
45
40
35
30
25
20 PERCENTAGE
15
10
5
0
NEWS PAPER ADVERTISEMENT SOCIAL MEDIA MOUTH
PUBLICITY

INTERPRETATION: From the above cart we can see that 46% where come
to know with newspaper, 34% where mouth publicity, 20% where through
advertisements, and no one with social media

59
Table 4.6

How long you are using KAL products

SL NO Parameter Number of Percentage of


respondents respondents
1 Less than 1 year 6 12
2 2-3 years 12 24

3 4-5 years 10 20

4 More than 5 years 22 44


5 TOTAL 50 100
Primary source

Chart 4.6

PERCENTAGE
50
45
40
35
30
25
PERCENTAGE
20
15
10
5
0
Less than 1 year 2-3 years 4-5 years More than 5 years

INTERPRETATION: From the above chart we can see that the 44% where using
more than 5 years, 24% where using 2-3 years, 20% where using 4-5 years, and
12% where using less than one year.

60
4.7 Are you aware about after sale service of KAL.

Table 4.7

SL NO Parameter Number of Percentage of


respondents respondents
1 YES 12 24

2 NO 38 76

3 TOTAL 50 100

Primary source

Chart 4.7

Percentage of respondents
80

70

60

50

40 Percentage of
30 respondents

20

10

0
YES NO

INTERPRETATION: From the above chart we can see that 76% of the customer
didn’t aware about aftersales service and 24% where aware about after sales
service of KAL.

61
4.8 Reason for choosing this company

TABLE 4.8

SL NO Parameter Number of Percentage of


respondents respondents
1 Low cost 18 36

2 Durability 23 46

3 Service 5 10

4 all 4 8

5 TOTAL 50 100

Primary source

Chart 4.8

Percentage of respondents
50
45
40
35
30
25
Percentage of respondents
20
15
10
5
0
Low cost Durability Service all

INTERPRETATION: From the above chart we can see that 46% where choose
for durability,36% where choose for low cost, 10% where choose for service, and
8% where choose for all service.

62
4.9 Have you seen advertisement of KAL?

TABLE 4.9

SL NO Parameter Number of Percentage of


respondents respondents
1 YES 36 72

2 NO 14 28

3 TOTAL 50 100

Primary source

Chart 4.9

Percentage of respondents
80
70
60
50
40 Percentage of

30 respondents
20
10
0
YES NO

INTERPRETATION: From the above chart we can see that the 72% where
seen KAL advertisement And 28% where didn’t seen KAL advertisement.

63
4.10 Which model auto rickshaw you prefer.

TABLE 4.10

SL NO Parameter Number of Percentage of


respondents respondents
1 Petrol 8 16

2 Diesel 29 58

3 electronic 13 26

4 TOTAL 50 100

Primary source

Chart 4.10

Percentage of respondents
70
60

50

40 Percentage of respondents

30

20

10

0
Petrol Diesel electronic

INTERPRETATION: In the above chart we can see that 58% where prefer diesel,
26% where electronic, and 16% where petrol.

64
4.11 Are you aware about promotion events in KAL

Table 4.11

SL NO Parameter Number of Percentage of


respondents respondents
1 YES 19 38

2 NO 31 62

3 TOTAL 50 100

Primary source

Chart 4.11

Percentage of respondents
70
60

50

40 Percentage of

30
respondents
20
10

0
YES NO

INTERPRETATION: In the above chart we can see that the 62% where not aware
about promotion activities, and 38% where aware.

65
4.12 Which medium made you aware about KAL

Table 4.12

SL NO Parameter Number of Percentage of


respondents respondents
1 SIGN BOARDS 0 0
2 SOCIAL 2 4
MEDIA
3 NEWSPAPER 36 72
4 MOUTH 12 24
PUBLICITY
5 TOTAL 50 100

Primary source

Chart 4.12

Percentage of respondents
80
70
60
50
40 Percentage of respondents
30
20
10
0
SIGN SOCIAL VECHILE NEWS PAPER
BOARDS MEDIA BRANDING ADDS

INTERPRETATION: In the above chart we can see that the 72% where aware
with the vehicle branding, 24% where newspaper ads, 4% where social media, and
no one where signboards.

66
4.13 Which engine you prefer mostly

Table 4.13

SL NO Parameter Number of Percentage


respondents of
respondents
1 Front engine 42 84

2 Rear engine 8 16

3 total 50 100

Primary source

Chart 4.13

Percentage of respondents
90
80
70
60
50 Percentage of
40
respondents
30
20
10
0
Front engine Rear engine

INTERPRETATION: In the above diagram we can see that 84% where prefer
for front engine, and 16% where prefer for back engine.

67
4.14 The logo of KAL is attractive

Table 4.14

SL NO Parameter Number of Percentage of


respondents respondents
1 Strongly agree 3 6
2 Agree 5 10
3 Neutral 15 30
4 Disagree 11 22
5 Strongly 16 32
disagree

6 total 50 100
Primary source

Chart 4.14

Percentage of respondents
35
30

25

20 Percentage of

15
respondents
10
5

0
Strongly Agree Neutral Disagree Strongly
agree disagree

INTERPRETATION

From the above diagram we find that 32% of the respondent disagree that the logo
of KAL is attractive.

68
4.15 Which product you buy mostly in KAL

Table 4.15

SL NO Parameter Number of Percentage of


respondents respondents
1 AUTORICKHAW 41 82
2 SPARE PARTS 6 12

3 TWO WHEELER 0 0

4 OTHERS 3 6

5 TOTAL 50 100

Primary source

Chart 4.15

Percentage of respondents
90
80
70
60
50 Percentage of
40
30 respondents
20
10
0
AUTORICKHA SPARE PARTS TWO OTHERS
WHEELER

INTERPRETATION: In the above chart we can see that 82% where bought
autoricksha, and 12% where bought spare parts, 6% where bought others, and
none was two wheeler.

69
4.16 The advertisements of KAL inspired you to buy products.

Table 4.16

Sl.NO Parameter Number of Percentage of


respondents respondents
1 Strongly agree 2 4

2 Agree 23 46

3 Neutral 14 28

4 Disagree 7 14

5 Strongly disagree 4 8

6 total 50 100

CHART 4.16

Chart Title
50
45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree
Series 1 Column1 Column2

INTERPRETATION

From the above data we can find that 46% of the respondent agree that the
advertisement of the company has influenced them to buy KAL products.

70
4.17The after sales service of company is effective

Table 4.17

SL NO Parameter Number of Percentage of


respondents respondents
1 Strongly agree 32 64

2 Agree 6 12

3 Neutral 3 6

4 Disagree 6 12

5 Strongly disagree 3 6

6 total 50 100

Primary source

GRAPH 4.18

Chart Title
70

60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree
Series 1 Series 2 Series 3

INTERPRETATION

From the above data we find that 64% of the respondent strongly agree that the
after sales service of the company is effective in building a good brand image.

71
4.18 The pricing policy adopted is attarctive

Table 4.18

SL NO Parameter Number of Percentage of


respondents respondents
1 Strongly agree 16 32
2 Agree 15 30
3 Neutral 5 10
4 Disagree 11 22
5 Strongly 3 6
disagree
6 total 50 100

Chart Title
35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagre Strongly disagree

INTERPRETATION

From the above data we can find that 32% of the respondent find that
the pricing policy of the company is effective.

72
4.19 The distribution system of KAL is efficient
TABLE 4.19

SL NO Parameter Number of Percentage of


respondents respondents
1 Strongly agree 21 42
2 agree 19 38

3 neutral 7 14

4 disagree 3 6
5 Strongly disagree 0 0

6 total 50 100

GRAPH 4.19

Chart Title
45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree
Series 1 Column1 Column2

INTERPRETATION
From the above data we find that 42% of the respondent find that the distribution
system of the company is effective and the product are delivered on time

73
4.20 Would you like to do future business with KAL.

TABLE 4.20

Sl no Parameter Number of Percentage of


respondent respondent
1 Strongly agree 24 48
2 Agree 10 20
3 Neutral 8 16
4 Disagree 4 8
5 Strongly 0 0
disagree

GRAPH 4.20

Chart Title
60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree STRongly disagree
Series 1 Column1 Column2

74
75
FINDINGS
1. Most of the customers are males.
2. The advertisements are partially inspired the audience. The
marketing department must improve the advertising methods.
3. Currently the mouth publicity and newspaper ads are strongly influencing
the customers to get to know about KAL.
4. KAL products are durable in nature. Customers are using it more than
five years.
5. The after sales services are very poor in the organisation and it must
be improved.
6. Maintain the low cost and durable goods will increase the sales
7. Most of the people are did seen the ads of KAL.
8. The customers are actually need the diesel auto and electronic auto so the
company must concentrate on electronic auto and diesel engine auto.
9. Vehicle branding is very good responds for promotion activities.
10. Customer need the rear engine auto and the company must advertise that in
the adds
11. The company must call the customers after sale for feedback purpose.
12. The company must change or reintroduce the logo of KAL

76
SUGGESTIONS

1. The organization need to build a new team for marketing management.


2. The marketing department need to Find funds for advertising
3. The marketing team need to start social media ads for marketing purpose.
4. Organization need to hire new employee for digital marketing to improve the
marketing activity.
5. The organization need to Change the logo. Most of the customers
are unsatisfied with the existing logo.
6. The marketing team need to collect feedbacks from customers for better
relation to the customers.
7. If any inconvenience caused to customers, should be apologised by
the employees.
8. It is better to start more retail outlets for the convenience of customers.
9. Any promise made by the service provider related to service to the
customers should be done on prompt time.
10. Training programme should be conduct to the employees for better serve
to the customers.

77
CONCLUSION

Marketing strategy lies at the conceptual heart of the strategic marketing field. It is also
central to marketing practice and the area within which many of the most pressing
challenges for marketers arise. Using a new conceptualization of the domain of the
marketing strategy construct as a lens, we assess the current state of marketing strategy
research. We uncover important challenges to marketing strategy research but also
numerous opportunities for developing important and highly relevant new marketing
strategy knowledge. The research agenda we develop provides opportunities for
researchers to develop new theory, establish clear relevance, and contribute to improving
practice. Since many of these cannot be adequately addressed with current publicly
available secondary data, researchers need to become more eclectic and creative in their
research designs, including emerging new technologies for data capture and analysis.
Correspondingly, Editors, Associate Editors, and reviewers will need to become more
open, and skilled in evaluating such research designs. While there may be institutional
obstacles in doing so, our research suggests the payoffs can be enormous the number and
importance of unanswered marketing strategy questions and opportunities to impact
practice has arguably never been greater.

78
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M. Berk Ataman, Harald J. Van Heerde, Carl F. Mela(2010) ,Vol 47, Issue 5, 2010

The Long-Term Effect of Marketing Strategy on Brand Sales

P. Rajan Varadarajan, Anil Menon Vol 52, Issue 3, 1988

Cause-Related Marketing: A Coalignment of Marketing Strategy and Corporate


Philanthropy

G Armstrong, P Kotler - 2005 - Pearson, Prentice Hall, New Jersey.Marketing: An


Introduction (International edition)

Stanley F. Slater Eric M. Olson . Volume22, Issue11 November 2001

Pages 1055-1067 Marketing's contribution to the implementation of business strategy:


an empirical analysis

Completing the Practice Turn in Strategy Research ,Richard Whittington Vol 27,
Issue 5, 2006

Implementation Strategies in the Market-Driven Strategy Era

David W. Cravens , Vol 26, Issue 3, 1998

Measuring innovation culture in organizations: The development of a generalized


innovation culture construct using exploratory factor analysis. C. Brooke Dobni,
European Journal of Innovation Management, 2008

Behavior-Based and Outcome-Based Salesforce Control Systems.DAVID W


CRAVENS . Vol 57, Issue 4, 1993

Strategic marketing : a European approach. J. Lambin

Published 1993

OXFORD UNIVERSITY PRESS. Marketing ( Asian edition 2013)

Aaker & A., D. 1998. Developing business strategies (6th Ed.).

79
QUESTIONNAIRE

GENERAL PROFILE FOR RESPONDENTS

Name :

Age group : 15-20 21-25 25-30 above 30

Gender : Male Female

Designation : student

Business

Govt employee

Private employee

QUESTIONS

1. The advertisements of KAL inspired you to buy products do you agree


with this?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

2. From which of the following source you come to know about KAL ?
a. News paper
b. Advertisement
c. Social media
d. Mouth publicity

3. How long you are using KAL product?


a. less than one year
b. 2-3 years
c. 4-5 years
d. More than 5 years

80
4. Are you aware about after sale service of KAL?
a. YES
b. NO

5. Why did you choose this automobile company?


a. Low cost
b. Durability
c. Service
d. all

6. Have you seen the advertisement of KAL?


a. YES
b. NO

7. Which autoricksha do you prefer?


a. Petrol
b. Diesel
c. electronic

8. Which medium made you aware about KAL?


a. Sign boards
b. Social media
c. Vehicle branding
d. Newspaper advertisement

9. Are you aware about promotion events in KAL?


a. YES
b. NO

10. Which model vehicle you like to buy?


a. Front engine
b. Rear engine

11. Are you aware about the promotion events in KAL.

81
a, Yes

b. No

12. Through which medium you came to know about the

company. a. Sign board

b. Social media

c. Mouth publicity

d. Newspaper advertisement

13. Which engine you prefer mostly


a.Front engine

b. Back engine

14. The logo of KAL is attractive

a. strongly agree
b. agree
c. neutral
d. disagree
e. strongly disagree

15. Which product mostly you bought in KAL


a. Autoriksha
b. Spare parts
c. Two wheelers
d. Others

16. The sign boards of KAL are useful and easily catchable do you agree?
a. strongly agree
b. agree
c. neutral
d. disagree
e. strongly disagree

17 The after sales service of company is effective

82
a. strongly agree

b. agree

c. neutral

d. disagree

e. strongly disagree

18 The pricing policy adopted is attractive.

a. strongly agree

b. agree

c. neutral

d. disagree

e. strongly disagree

19 The distribution system of KAL is efficient


a. strongly agree

b. agree

c. neutral

d. disagree

e. strongly disagree

20 Would you like to do future business with KAL.


a. strongly agree

b. agree

c. neutral

d. disagree

e. strongly disagree
83
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