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“The marketing as the performance of business activities
that direct the flow of good and services from producer to
customer is user”

-The American Marketing Association-

“The market includes both place and region in which buyers

and sellers are in free competition one another.”


“Market for most commodities may be through of not as a

geographical meeting place but as getting together buyers and
sellers in person by mails, telephone, telegram or any other
means of communication”.

“Marketing is a the deliver of a standard of living to society”.

Marketing is the social and managerial process by which
individual and groups obtain what there need and want to create
offering and exchanging product of value with others.

Need: The human need is a state of felt deprivation of sum basis


Ex – Food, cloth, shelter, safety, belongings and few per


Wants: There are desires for specific satisfier so this deeper


Note: Wants are continuously shop and reshaped by social forces

and institution such as searches, schools, families and business

Demand: This is specific product that is backed by ability and

willingness to buy them.

Exchange: It is the act of obtaining a desire product from some

one by offering something in return
Transaction: - It consists of trade of value between two parties
transaction differ from transfer

Markets: - A market consists of all the contention customer

sharing a particular need is want who may believe and able to
engage in exchange to satisfies the need and want.

A market is some one seeking a resource from some one

else and willing to offer something of value in exchange.

Need for the Study

Modern business environment is highly competitive. Thanks

to the paradigm sift in the economy brought about since 1991,
new process of competition have been us her in all sectors of the
economy. The entrepreneur and the industrial managers have
now to face fierce competition not only from local players but also
from global players. Under the changing scenario, managing
marketing efforts not only to create but also to sustain customer
base has become really challenging.
Strategic marketing consisting of segmentation, targeting
and positioning has become the necessity.

It is in this context that the present study on “marketing

mix” in Varun motors dairy, Vadlamudi, Guntur district is carried


A business depends upon the customer. It is necessary to win the

customer and then to retain him.

Today we might look successful even without implementing

some of the pains raised. But, there is no real competition.
Customer might not be having any better alternatives. However
until and unless we give out best to consumers in terms of
In case of industry the service can be provided in many ways
viz. attending every customer complaints within 244 hours,
making the product available through out the day.

Today it is an era of competition and therefore, one just can

not afford to take consumer for granted. There is no other
alternative expect to provide quality products as well as service.

Organized dairies in India add about 25-30% value of milk

during its collection and transportation from village’s
pasteurization chilling, packaging, distribution to consumer.


The present study has taken up with the following objectives.

To study the marketing mix practices of milk and milk

products in “Varun motors dairy” Guntur district
To know the attitudes of consumers on milk and milk
products of Varun motors dairy.

To find out loopholes in marketing mix practices and offer

suitable suggestions to remove them.

To find the promotional activities which helps to take a

position in the minds of the customer?

To study about the pricing policies of the organisation which

they are following.

Methodology of the study

The basic principle in the research has been adopted in the

over all methodology. The following methodology has been used
for meeting the requirements.
– Defining objectives
– Developing the information Sources
– Collection of information
– Analysis of information
– Suggestions

The methodology followed for collection, analysis under

interpretation of data is explained below.

1. Research design:

There are generally three categories of research based on the

type of information required, they are

1. Exploratory research
2. Descriptive research
3. Casual research

The research category used in this project is descriptive research,

which is focused on the accurate description of the variable in the
problem model. Consumer profile studies, market potential
studies, product usage studies, attitude surveys, sales analysis,
media research and prove surveys are the examples of this
research. Any source of information can be used in this study
although most studies of this nature rely heavily on secondary
data sources and survey research.

2. Data Collection Method:

a. Primary Method: It is collected through the questionnaire, a

formalized instrument of asking information directly from
respondent, demographic characteristics, attitude, belief and
feelings through personal contracts. Structured and on
distinguished from of questionnaire is used and consists of
multiple choice questions.

Secondary Data:- internal secondary data about the Varun

motors included formal data, which is generated within the
organisation itself, where obtained through concerned head in the
organisation itself, where obtained through concerned head in the

External secondary data generated by source outside the

organization was used such as distributor’s available data
provided by the reports of the company. All this information is of
great importance and conceptualizes and illuminates the core of
the study.

Sample Design:

a) Sampling Unit:- The study is directed towards the distributors

of Varun motors Dairy

b) Sample size:- Sample size of 100 is taken in this study which

is nearly 100% of the total population.

4. Data Analysis:-

Sample analysis method is followed for analyzing the data

pertaining to different dimensions of employees. Simple statistical
data like percentage are used in the interpretation of data
pertaining to the study. The results are illustrated by means of
bar charts.

1. The findings of the study may not be true representative of

what they could be had of customers in the population
2. The number of respondents are restricted to 100 accurate
conclusions can not be drawn from this limited size;
3. Limited number of questions is a back drop in this study
4. Some of the customers were reluctant to give proper
information owing to their busy schedule.
5. The study was conducted only in Tenali town hence it is
confined to a limited group only.
Automobile Sector in India:

The Indian automotive industry consists of five segments:

commercial vehicles; multi-utility vehicles and passenger cars;
two-wheelers ; and tractors ,with 5,822,963 units sold in the
domestic market and 453,591 units exported during the first nine
months of FY 2005 (9MFY2005), the industry (excluding tractors)
marked a growth of 17% over the corresponding previous. The
two-wheeler sales have witnessed a spectacular growth trend
since the mid-nineties.

Profile of Two Wheeler Industry in India:

The two wheelers industry has under gone a drastic change
since its time of invention a one and half century ago very few of
us would have anticipated that the different types of two wheelers
would be as popular as a means of personal transport as its

Chronicle of Motor Cycle and 2 Wheelers:

The first motorcycle was invented by an English man called

EDWARD BULTER in the year 1848. It took the inventor to the
public and that was in the year 1885. Soon this motorcycle
attracted the industrialist and the first manufacturing unit has
been at MUNCH in the year 1893.

A close cousin of this machine was a motor scooter which

was invented in ENGLAND by BRADSHAW in the year 1919. There
are two inventions merged as the must popular two wheelers in
the modern days and were developed in to even fine and
sophisticated models for the needs of the common man.

In the earlier stages, sale of scooters, motorcycles and

mopeds were confined mainly to urban but lately in rural areas
the bicycles are being by power driver two wheelers such as
scooters, motor cycles and mopeds.

The two wheelers emerged as a common man’s power house

from the stages of rich class luxury item. The growth in the year
1980’s was mainly due to changing tastes and standard of living.
After that initial growth there was segment phase with
recessionary trends in the early 1990’s but the progress during
1993-1999 has been significant with total output rising by 69.64%
to 29.8 from 17.55 lakhs units in 1993-1994.

The increase in sales was pronounced in 1994-1995 and

1995-1996. But there has been a declaration in 1996-1997 with
the total rising by 11.48% against 20.32 and 25.73% in the
previous years. There is a steep escalating growth in the 1999-
2000 by 10.9% while compared to the sales in the year 1998-
1999 which amounts 34, 03,427.

Even in absolute terms, sales well higher by only 3.05 lakhs

units in 1994-1995. The sales were hitch hiked to a increase of
7,96,778 units in the year 1999-2000 from the sales in the year
1997-1998 which amounts 29,80,000 units.

Two-wheelers: Market Size & Growth

In terms of volume, 4,613,436units of two-wheelers were

sold in the country in SMFY2005 with 2565,756 units exported.
The total two-wheelers sales of the Indian industry accounted for
around 77.5% of the total vehicles sold in the period mentioned.
After facing its worst recession during the early 1990s, the
industry bounced back with a 25% increase in volume sales in FY
1995. How ever, the momentum could not be sustained and sales
growth dipped to 20% in FY1996 and further down to 12% in
FY1997. The economic slow down in FY1998 took a heavy toll of
two-wheelers sales, with the year-on-year sales (volume) growth
rate declining to 3% that year. However sales picked up there
after mainly on the strength of an increase in the disposable
income of middle-income salaried people; higher access to
relatively inexpensive financing and increasing availability of fuel
efficient two-wheeler models, nevertheless. This phenomenon
proved short-lived and the two-wheeler sales declined marginally
in FY2001.this was followed by a revival in sales growth for the
industry in FY2002.

Although, the overall two-wheeler sales increased in FY2002,

the scooter and moped segments faced the growth .FY2003 also
witnessed a healthy growth while the mopeds continue to decline.

Even with a greater preference for our motor cycles and

large incremental sales, a net drop in total additional sales could
not be avoided as there was a slackening demand for mopeds?
But the aggregate sales of two wheelers have risen by 7.94%,
19.4% and 13.55 respectively in the years 1994-1995, 1995-1996
and 1996-1997.

The trends in production and sales during 1993-1999 clearly

indicate that motor cycles are being preferred to a greater extent
that scooter and mopeds through scooters for the largest market
share of allow wheelers at 44.2% in 1996-1997 and 47.53% in

On the basis if the data for 1993-2000 total two wheeler may
rise to nearly 50 lakhs units by 2002-2003. The new opportunities
fully utilized by the existing major players like auto, LML,
Bajaj auto has been increasing the capacity of its factories at
Waiuj and Akrudi and is implementing a new project at third site
in pune with an eventual capacity of 3.5 million units annually.
Hero Honda has been making considerable head way in recent
years. Besides increasing the capacity of its daluhia plant to 3.5
lakhs unit per annum it is setting up a new project in gorgon with
a yearly out put of 3 lakhs units. Escorts has been creating
separate division for trying out tractors and two wheelers and a
joint venture in collaboration with Yamaha of Japan has been
promoted with equal state in the equity capital and the complex
in Sujpur in up , which will be the biggest of its kind in the
country. Kinetic Honda and Kinetic engineering have been
creating new facilities in the existing plants while TVS Suzuki is
executing a new plant in tumkur, Karnataka with capacity of 3
lakhs units yearly, LML for its part, has completed its first phase
of expansions in the year 1996 at a cost Rs 200 crores which
resulted in an increase inits production capacity from 2lakhs units
to 3lakhs unit annually. The second phase o f expansion would
engage the company to increase its production to six units

Present trend in automobile sector

Market size & growth

in terms of volume, between 2004-2005 and 2005-2006, the

industry’s oberall sales of two-wheelers grew by 16.7%, from
5.63million. Motorcycles, which constitute by far the most
dominant category, showed increase in the volume of sales by
20.9% from around 4.32 million to almost 5.22million. As a result ,
the share of motorcycles to two wheelers sales rises from 76.7%
in 2004-2005 to 2005-2006. The total tow-wheeler sales of the
India industry accounted for around 77.5% of the total vehicles
sold in the period mentioned.

Demand drives

The demand for two wheelers has been influenced by anumber of

factors ober the past five years. The key demand drivers for the
growth of the two-wheelers industry are in flows:

➢ Inadequate public transportation system, especially in the

semi urban and rural areas.
➢ Increase in availability of cheap financing schemes in past 3-
4 years.
➢ Increasing availability of fuel-efficient and low-maintenance
➢ Increasing urbanization , which creates a need for personal
➢ Changes in the demographic profile.
➢ Deference between two-wheelers and passenger car prices.
➢ Entry level models in two-wheelers.
➢ Steady growth in per capital income in past five years.
➢ Increase in number of models with different features to
satisfy diverse consumer needs.

Increasing focus on exports:

For the first nine months of FY2006.two-wheelers exports have
increased by 31% over the corresponding previous year led
mainly by motorcycles even as exports of other two-wheelers was
healthy. While motorcycles exports increased by 40% scooter and
moped exports increased by 29% and 27%.


Volumes in the two-wheeler industry are expected to rise at

double digit rates for quite same time to come. The monsoon is
good, the economy is booming and personal incomes are rising all
indicators for sustained growth with steel prices declining, input
cost will stabilize and companies can hope to maintain margins at
current levels, prices of steel, the biggest raw material.

Declining shows the growth of two-wheeler industry market is

expected grow 10-12% increase during 2006-2007.



The Bajaj group came in to existence during the turmoil and the
heady euphoria

Of Indian’s freedom struggle. Jamnala Baja, was a confidant and

discipline of Mahatma Gandhi, and was deeply involved in the
efforts from freedom. The integrity, dedication resourcefulness
and determination to succeed which are characteristic of the
company today, are often traced back to its birth those long days
of relentless devotion to a common cause.

Kamalanyan, the eldest son Jamnala Bajaj, succeeded his father in

1942, at the age of twenty-seven. putting the nation before
business, he devoted himself to the latter only after India
achieved independence in 1947.

But when he did so. He put his heart and soul in to it. with in a
short while, he not only consolidated the group. But also
diversified in to various Manufacturing activities, elevating the
groups to the status in the enjoy till this day.

Rahul Bajaj to day heads the groups. He has been the chief
executive officer go Bajaj since 1968 and is recognized as one of
the most outstanding business leaders in India. As dynamic as his
illustrious predecessors. he has been recognized for his
achievement as various national and international forums.

Bajaj’s is currently Indian’s largest two-wheelers

manufacture and one of the biggest in the world. Bajaj’s has long
left behind its annual turnover of Rs72 million(1968), to currently
register an impressive figure of Rs42.16 billion(US$36).

Under Rahul Bajaj auto has made it really big among other
segment of the Bajaj family. Bajaj auto it self accounts for Rs
3845crores in the country’s Rs7000crores market for two-
wheelers and three wheelers. Presently it is passing through a
worst recession in its 46 years out history under Rahul because of
growing competition from the other companies.

Based in pune Bajaj auto has two factors presently in walaji and
akrudi and a new project is coming up at a third site in pune it self
with this the total capacity will be 3.5 million units annually.

The Rs293 crores Maharashtra scooters, a two wheelers assembly

unit caters specifically to Bajaj Auto’s need with a manufacturing
capacity of 1.6 million units annually both two wheelers and three
wheelers. Bajaj auto is the fourth largest three wheeler products
in the world. But for the first time in 22 years Bajaj Auto’s not
projects in the first half of 1997-1998 (205.38 crores) were lower
than those it had earned during the corresponding period of 1996-
1997(225.89crores). Now Bajaj auto goes hand with Kubota
Corporation of Japan.

Bajaj auto accounts for Rs3,845 crores of the total shares of

the India two wheeler market which includes scooters,
motorcycles and mopeds and it also has aan overwhelming shall
of 87% in the three wheeler market.

Collectively, the two and three wheelers business account

for 67% of the group’s 5553 cores turnover.

The second largest company in the group contributing 16% of its

total turnover in Mukund. Jointly owned by Bajaj and shah
families. Then the groups remaining turnover is generated by the
Rs206.77 cores Bajaj subsidiary Bajaj sevasharam and sekhar
Bajaj run 291.93cores Bajaj Electrical limited


Bajaj auto’s main focus is on the middle class who are its
traditional customers and potential customers, so all its strategies
are tailored to make the company cost focused as most of the
middle class, if not all look for “value for money for years”
though Bajaj auto is very competitively positioned., overall the
last few years, it has been gradually loosing its market share in
the two wheelers segment for premium models. Though Bajaj
auto focuses on middle class this segment will be not in future.
The threat to the company came from with in because it had
ignored the role of product development. Forever, the spate of
new products and models in the recent past show that the phase
is over.

The company is a cost leader and was struggling to become

as a differentiator. its resistance to change lies in its belief that its
cost focus strategy is too strong to be diluted. strong to be


➢ November 29,1945 BAJAJ Auto comes into existence as

M/s.BachraJ Trading corporation Limited.
➢ 1948 sales in india commence by importing two and three-
➢ 1959 Bajaj Auto obtains license from the Government of
India to manufacturing two and three-wheelers.
➢ 1960 Bajaj Auto becomes a public limited company Bhoomi
Pooja of Akrudi plant.
➢ 1969-70 Bajaj Auto rolls put its 1,00,000th vehicle
➢ 1971 the three wheelers goods carrier is introduced
➢ 1972 The Bajaj Auto Chetak is introduced.
➢ 1976 The Bajaj super is introduced.
➢ 1976-77 Bajaj Auto achieves production and sales of
1,00,000 vehicles in single financial year.
➢ 1981 The Bajaj M-50 is introduced
➢ January 10,1984 foundation stone laid for the new plant at
➢ 1985 produuction commences at Waluj, Aurangabad time of
16 months
➢ November 5,1985 the waluj plant inaugurated the erstwhile
president of india shri Giani Zail Singh.
➢ 1986-89 the Bajaj M-80 and the kawasaki Bajaj KB100
motorcycles are introduced 5,00,000 vehicles produced and
sold in a single financial year.
➢ 1990 the Bajaj sunny is introduced.
➢ 1991 The kawasaki Bajaj 4s champion is introduced.
➢ 1994 The Bajaj classic is introduced.
➢ 1994-95 one million vehicles were produced and sold in this
financial year.
➢ 1995 The Bajaj super Excel is introduced while Bajaj
celebrations its then millionth vehicle.
➢ 1995 agreements singed with kubota of japan for the
development of diesel engines for the three wheelers and
with Tokyo R&D for un-geared scooter and moped
➢ November 29,1995 Bajaj Auto is 50 years.
➢ 1997 The kawasaki Bajaj Boxer and the RE diesel Auto
Rickshaq are introduced.
➢ 1998 june 7th kawasaki caliber Roll out of waluj.
➢ July 25th Legends, Indian’s first four-stroke scooter roll out of
➢ October 1996 spirit launched.
➢ 1999 caliber motor cycle notches up 1,00,000 sales record
time of 12 months.
➢ 2000 The Bajaj suffer is introduced.
➢ 2001 The Eliminator is introduced.
➢ 2002 The Bajaj pulsar is introduced.
➢ 2003 Bike is introduced.
➢ 2003 caliber115b(Hoodibabaa) is introduced.
➢ 2004 pulsar DTS-I is introduced.
➢ 2004 wind-125 is launched.
➢ 2005 june 9th Bajaj CT-100 is introduced.
➢ 2006 Bajaj launched the new Bike platina and by the year
ending Bajaj is planning launch new 200ccpulsar.
➢ 2006 Bajaj chairman Mr.Rahul Bajaj electede as Member of
parliament (Rajya sabha) from Maharashtra.
➢ 2007 kristal is introduced.
➢ 2007 Bajaj launched the new bike pulsar 220cc Fi will be
introduced in the year ending.
➢ 2008 Bajaj launced the new bike Discover 100cc, 135cc will
be introduced in the year ending.
➢ 2009 Bajaj launched the new bike NINJA 250cc will be
introduced in the year ending.

Organisation structrure:













Grabbing the market share;

Bajaj produces three product groups,

➢ Scooters
➢ Motorcycles
➢ And three wheelers

Bajaj still retains the dominant market position in scooters in

India. One of the strengths Bajaj posseses is its reputation for
inexpensive and durable products. Bajaj also has developed
products that fit with in Indian needs and draw on the Indian
consumer’s sense of national Identiy. It is one of India’s top ten
companies in terms of market captalization and among the top
five3 in terms of annual turnover.

Motorcycles models and their sale;

The pulsar continues to dominate the premium segment fo

the motorcycle market.The 125cc Discover DTS-I was introduced
in the value segment of the motorcycyle market and proved as
best vehicle in its class, with better mileage and maintenance.
The new CT-100 and platina has been introduced in entry level
with Exhaus Tec, spring in spring (SNS) year suspension on Indian


The company has a network of 479 dealers and over 1300

services dealer across the country. During the FY04-05 52 new
dealers were appointed. This addition 52 dealers is the largest
network expansion in the automobile sector during the year2004-

Bajaj Auto Facts;

Customer point of view;

Experience in the auto mobile field for the last 41 tears

1. Products are truly affordable of buy and run.

2. Widestr sales and after sales services network.
3. Economy of man production.
4. Low cost of spare parts.
5. Easer technology, familiar even to local mechanics.
6. Widest range of production in the two wheeler market
suitable for everyone.
7. Products are proven and reliable they require minimum
8. Time tested performance having creditability of ober one
core satisfied customers.
9. Regular technology up gradations.
10.Over 150 filed service engineers to give their expertise.
11.Having its own finance company Bajaj Auto Finance Ltd.

Production of Bajaj Automobile:

There are three segments of bikes those are:

Entry-Level Executive Level premium level

pro-biking level

CT-100 Wind-125 pulsar-150


Platina Discover 100(k.s) pulsar-180


100cc Discover 100(k.s)


135cc Discover 135(k.s)


Name of the Organization:



40-1-126, BENZE CIRCLE,


It is situated on the bank of river krishna . This is the true

GATE OF THE SOUTH for the travels from northern and eastern
parts of the country. It also connects the 3 regions of Andhra
Pradesh and in major transit point having the biggest the railway
junction in south central railway and biggest Bus station in Asia. It
has been started on 4th September ,1999 by Mr. Prabhukishore,
with a landmark showroom situated at the heart of city , having
all the infrastructure amenities with full range of vehicles large
scale financing of its own and having the remarkable mile stone in
achieving an average sale target of 850 vehicles per month and
around 3000 vehicles servicing with well planning.


To brief about VARUN MOTORS , VIJAYAWADA. It has been

started on 4th September ,1999 by Mr.Prabhukishore , with a
landmark showroom situated at the heart of the city having all
the infrastructure , amenities with full range of Bajaj Vehicles
large scale financing if its won and having the remarkable mile
stone in achieving an average sale target of 850 vehicles per
month and around 3000 vehicles servicing with well planning the
highly disciplined and dedicated efforts of one and all at highly
sophisticated prestigious showroom and as well as workshop
respectively. We are having four branches situated at Gudiwada ,
Nuzivid, Machilipatnam and Nandigama to make perfect a
command area. We have a network of ASC’s in the following
areas Gudivada ,Challapalli ,Kaikuluru,
Hanumanjunction ,Pamarru ,Tiruvurru and Jaggaiahpet.

 Bajaj auto limited started in 1960.

 Jamanlal Bajaj founder of the Bajaj group , was a confidante
and disciple of Mahatma Gandhi and was deeply involved in
the effort for freedom.
 It is the leading of Bajaj company is ‘Bajaj Chetak’.
 The house of Bajaj came into limelight with the first person
of the family.
 Mr.Jamnala Bajaj’s whose varied activities spread across
different fields including business. The present day Bajaj
auto is headed by grandson Mr.Rahul Bajaj.
 Only Rahul Bajaj auto has made it really big among other
segment of the Bajaj family.
 Bajaj auto it self accounts for Rs.3845 crores in the counter’s
Rs.7000 crores market for two wheelers and three wheelers.
 Presently it is passing through a worst recession in its 38
years old history because of growing competition from the
competitive companies.
 Based in pune Bajaj auto has two factors presently in Walaji
and Akrudi and a new project is coming up at third site in
pune it self with the total capacity will be 3.5 million units

 The Rs.293 crores Maharastra scooters , a two wheelers

assembly unit caters specifically to Bajaj Auto’s need with a
manufacturing capacity of 1.6 million units annually both two
wheelers and three wheelers. Bajaj auto is the fourth largest
three wheeler products in the e world. But for the first time
in 22 years Bajaj Auto’s not projects in the first half of 1997-
1998 (205.38 crores) were lower than those it had earned
during the corresponding period of 1996-1997 (225.89
crores). Now Bajaj auto goes hand with Kubota corporation
of Japan.

Bajaj auto accounts for Rs.3845 crores of the total shares of the
Indian two wheeler market which includes scooters,
motorcycles and mopeds and it also has an over wheeling shall
of 87% in the three wheeler market.

Collectively the two and three wheelers business account for

67% of the group’s 5553 crores turnover.

The second largest company in the group contributing 16%

of its total turnover in Mukund jointly owned by Bajaj and shah
families. Then the groups remaining turnover is generated by
the Rs.206.77 crores Bajaj subsidiary Bajaj sevasharam and
sekhar Bajaj run 291.93 crores bajaj electrical limited.


Bajaj auto’s main focus is on the middle class who are its
traditional customers and potential customers, so all its strategies
are tailored to make the company cost focused as most of the
middle class, if not all look for “value for money for years”,it has
been gradually loosing its market share in the two wheelers
segment for premium models. Though Bajaj auto and focuses on
middle class this segment will not in future. The threat to the
company comes from with in because the role of product
The company is a cost leader and struggling to become as a
differentiator. Its resistance change lies in its belief that its cost
focus strategy is too strong to be diluted with reserves of Rs.1500
crores cash rich Bajaj auto need not think twice about investing in
innovation and technology. Yet the company has never first to
launch new models. Recently the company is trying to get rid of
the image that is unable to innovate , so apart from upgrading
each of its vehicles by the end of the year 1998. Bajaj auto going
to launch lower new models including motorcycles, scooters and


At present the Bajaj company is expected to hit the Indian roads

with four wheeler vehicles by 2008-2009. The company is also to
launch dual-fuel 2 wheeler over the next 12 months which will
also have the option of running on petrol apart from CNG/LPG.

Bajaj group is amongst the top 10 business houses in India. The

group’s flagship company. Bajaj auto is ranked as the world’s
fourth largest 2 and 3 wheeler manufacturer and the brand is
well-known in over a dozen countries in Europe,Latin America the
US and Asia. It has a network of 479 dealers and over 1300
service dealers across the country.

Promotional activities of Varun Motors:

The promotional activities carried and adopted by Varun Motors

➢ Advertising in newspapers.
➢ Free campaigns
➢ Test rides
➢ Exchange melas
➢ Mileage contents
➢ Loan melas
➢ Hoardings and wall paintings
➢ Extra value for exchange

The additional services offered to the customers in Varun Motors


➢ The free services for scooters a 6 for and paid service after
scale of scooters break down repair service.
➢ Four years extended engine said problem service.
➢ Finance through Bajaj Auto Finance and other finance like.

➢ Free check up campaigns
➢ Demo for new products
➢ Acceptance of warranty claims
➢ Customer training and
➢ Good customer management with a mission of inspiring


The quality service connection of varun motors is here under


“Every customer is our GUEST”

Greet the customer

 Acknowledge customer immediately

 Stand and show respect
 Smile to show friendly
 Introduce self and use customer name
 Establish eye contact
 Shake hands
 Offer assistance by saying “ I help you”
 Offer the customer a seat understand the customer’s
 Listen attentively
 Ask questions to probe and clarify
 Reface so that understanding occurs
 Maintain a friendly tone of voice
 Maintain confidently Empathize with the customer
 Put yourself into the customer shoes
 If the customer complaints, seek out something to agree
 Demonstrate genuine concern solve the customer needs
 Take responsibility
 Offer additional support, if needed.

Work Force

The total numbers of employees working in varun motors are

more than 150 more than five employees are on administration
and remaining are with marketing and the total number of
employees working in Varun Bajaj in Krishna district are 520
number, in the 60% will be on administration and marketing 40%
should be service.


DISCOVER 100 GC 1000


Varun has single franchise that is Bajaj auto. Bajaj auto

manufactures various types of scooters, motorcycle, mopeds and
three wheelers.

Year Scooters Ungraded Motor cycle Total

2000-2001 3654 407 665 4726
2001-2002 3052 `714 2640 6406
2002-2003 3049 813 2680 6602
2003-2004 1514 1031 5030 7575
2004-2005 885 1234 6353 8472
2005-2006 429 832 9396 10657
2006-2007 221 1109 12932 14262
2007-2008 66 250 11324 11640
2008-2009 60` 180 10000 18624
Two Wheelers sales in different companies:

Company April-March April-March Average Market

2007-2008 shares
07- 08-09
Hero Honda 28,93070 31,57,429 9.14 49.7 48.18
Bajaj 17,47,806 20,78,860 18.94 30.0 31.72
TVS 7,52,576 8,44,174 12.17 12.9 12.88
Yamaha 2,05,480 2,10,315 2.35 3.54 3.21
Honda 98,072 1,63,977 67.22 1.69 2.50
Others 1,13,555 98,889 -12.92 1.95 1.51
Total 58,10,559 65,53,664 12.79 100 100
Source:Eenadu paper june 18,2009

Two-wheelers Sales:

Company April-2006 April-2007 May-2008 May-2009

Hero Honda 2,55,408 2,34,656 2,69,532 2,85,193
Bajaj 1,26,494 165,811, 1,29,724 1,72,847
TVS 48,058 76,285 41,724 71,731
Total 5,70,000 6,06,000 4,77,901 5,71,367

3.28% 16.36%
Sources Eenadu paper june18-2009



 Varun motors has sold over 77199 two wheelers and 16860
three wheelers
 Varun motors achieved the all India No.1 ensuring customer
satisfaction by Gallup an independent market research
market research organization.
 Varun motors are the member of the executive dealers
committee which consists of fourteen dealers all over India.



 Bajaj auto ltd grew at impressive 42.9% for fiscal 2005 due
to jump in its motorcycle sale.
 The company achieved the 2004-2005 with an incredible
26,21,400 motorcycles, an impressive jump of 27% obit FY
 The year on year growth registered by the company is
extremely well.


It is the process of planning and executing the conception,

pricing, promotion and distribution of goods, services and ideas is
create exchanges with target groups the satisfy customer and
organizational object.

The scope of marketing:-

Marketing is typically seen as the task of creating, promoting
and delivering goods and services to consumers and businesses.
In fact, marketing people are involved in marketing 10 types of

Goods services, experiences, events, persons, place,

properties, organizations, information and ideas.

Goods: Physical goods constitute the bulk of most countries

production and marketing effort. The US economy alone produces
and markets each year 80 billion eggs, 3 billion chickens, 5 million
hair dryers, 200 million tons of steel and 4 billion tons of cotton.
In developing nations, goods particularly food, commodities,
clothing and housing – are the main stay of the economy.

Services: As economies advance, a growing proportion of their

activities are focused on the production of services. The US
economy today consists of a 73-30 services to goods mix,
services include the work of airlines, hotels, car rental firms,
barbers and maintenance and repair people, dog kennels and dog
therapists as well as professional working within or for companies,
such as accountants, lawyers, engineers, doctors, software
programmers and management consultants.
Experiences: By orchestrating several services and goods, one
can creates, stage and market experiences, a pirate ship or a
hunted house. So are hard rock café and planet Hollywood. There
is a market for different experiences, such as a spending a week
at a base ball greats, paying to conduct the Chicago symphony
orchestra for five minutes.

Events: Marketers promote time based events. Such as the

Olympics; company anniversaries, majors trade shows, sports
events; and artistic performances. There is a whole profession of
meeting planners who work out the details of events and stage it
to come off perfectly.

Persons: Celebrity marketing has become major business years

ago, someone seeking fame would hire a press agent to plant
stories in news papers and magazines. Today every major film
star has an agent, personal managers, and has to a public
relations agency. Artists, musicians, CEO’s, physicians, high
profile lawyers and finances and other professionals are drawing
help from celebrity marketers.

Places: Place – cities, states, regions and whole nations –

compete actively to attract tourists was a fairly run down city with
one assets, its name a river called Avon. These become the basis
for an annual Shakespeare festival that put Stratford and the
tourist map.

Properties: Properties are intangible rights of ownership of

either real property or financial property. Properties are bought
and sold, and this occasional a marketing efforts. Real estate
agents work of property owners or seekers to sell or buy
residential or commercial real estate.

Organizations: Organizations actively work to build a strong

favorable image in the mind of their publics. We see
corporate identity ads by companies seeking more public
recognition. Philips, the Dutch Electronics company, puts
out ads with the tag line “let’s make things better”.

Information’s: Information can be produced and marketed as a

product. This is essential what schools and universities produce
and distributes at a price to parents, students and communities,
encyclopedias and most nonfiction books market information.
Managers such as road and track byte supply considerable
information about the car and computer worlds respectively.

Ideas: Every markets offering includes a basis idea at its core.

Charley Revision of revision observed “in the factory we make
cosmetics: in the store we sell hope”. The buyers of a drill are
really buying a hole.

Marketing mix is the set of controllable tactical

marketing tools product, price, place and promotion that
the firm blends to produce the response it wants in the
target market, marketing mix consists of everything the
firm can do to influence the cleanly for its product.

Elements of marketing mix. The four basic elements viz.

product, price, promotion and the place constitute the marketing

These four elements called 4 ps are used for grouping

different marketing activities under these heads. Therefore the
marketing mix consists of the following major activities usually
referred to as elements of marketing mix.

1. Product:-
Means the goods and service combinations the company
offers to the target market and activities relating to the product
services etc.
2. Price

It is the amount of money the customer pay to obtain the


3. Place:-

Includes company activities that market the product

available to the target consumer i.e. delivery/distribution of

4. Promotion:

Means those activities the company undertakes to

communicate and promote its product to the target market.

An effective marketing programme blends and the elements

of the marketing mix into a coordinated way to achieve the
company’s marketing mix into a coordinated way to achieve the
company’s marketing objective by delivering value to the
customer. The marketing mix constitutes the company’s practical
tool kit for establishing strong positioning in target markets.
It may be here that the four ps represent the seller view of
the marketing tool available for influencing buyers. Form a
consumer view point each marketing tools are designed to deliver
a customer benefit.

According to one marketing expert the companies should

view the four ps. In terms of the customers four cs.

FOUR Ps’ Four Cs

Product Customer needs and wants

Price Cost of the customer

Place Convenience

Promotion Communication.

Thus, winning companies will be those that can meet

customer’s needs economically and conveniently and with
effective communication.
Activities under the 4 ps the marketing mix

1. Product activities: Include policies and procedures relating

a. Product variety, quality, beaters, design, brand name
packaging, sizes, services, warranties and returns.
b. Markets to seal-whom, where and in what quantity.
c. New product policy, R sc D programmes.

2. Price activities: include policies and procedures relating to

– 1) List price 2) Discounts 3) Allowances 4) payment period
5) credit teems. Generally marketers consider the following
factors while seeking price, target customers, cost
competition, social responsibility.
3. Promotional activities: include policies and procedures
relating to
➢ Advertising: Media mix, budget, allocations, and
➢ Personal selling: objectives, quality of sales force,
cost level of motivation.
➢ Promotion: Special selling plans/devices directed
at or through the trade. Form of these devices is
consumed promotions and trade promotions.
➢ Publicity and public relations.

4. Place/distribution activities: Basically place or

distribution activities are used to transfer ownership to
consumer and to place products, services, ideas at the right
time and place distribution is made up of two components:
Physical distribution and channels of distribution.

Physical distribution: activities involved in moving products or

services form producer to consumer are:

– Transportation
– Where housing and storage
– Order processing
– Inventory control

Channels of distribution are the routes taken by goods form


It includes:

– Types of intermediaries channel design

– Location of outlets
– Channel remuneration
Dealer-principal relations

In brief, the four ‘ingredients’ in the mix are interrelated.

These are also known as marketing decision variables.

a. The product:-

Managing the product includes planning and developing the

right products and or services to be marketed by the company
policy strategy guidelines are needed for changing the existing
products adding new ones and decisions are also needed
regarding packaging co loop and other product features.

The marketing mix concept has its roots in the 1950s U.S.
corporate marketing world, and the practice of marketing has
obviously evolved tremendously since this term was invented.
One of the changes is that there are a lot more services available
nowadays, such as those available online. Also, the distinction
between product and service has become more blurry (e.g., is a
Web-based software application a product or a service?). Either
way, product here refers to products or services. The product you
offer needs to be able to meet a specific, existing market
demand. Or, you need to be able to create a market niche
through building a strong brand

b. Place

The management is required to determine the basis for

fixing the price of its goods and then establish policies for dealing
with discount, freight payments, payment, delivery, credit, terms
and other price related situation.

This term really refers to any way that the customer can
obtain a product. Provision of a product can occur via any number
of distribution channels, such as in a retail store, through the
mail, via downloadable files, on a cruise ship, in a hair salon, etc.
The ease and options through which you can make your product
available to your customers will have an effect on your sales

c. Promotion:-

The management must inform, persuade and remind the

market regarding the company‘s products. Advertising personal
selling and sales promotion programme are major promotional

Promotion is concerned with any vehicle you employ for

getting people to know more about your offering. Advertising,
public relations, point-of-sale displays, and word-of-mouth
promotion are all traditional ways for promotion. Promotion can
be seen as a way of closing the information gap between would-
be sellers and would-be buyers. Your choice of a promotional
strategy will be dependent upon your budget, the type of offering
you are selling, and availability of said promotional vehicle.

Marketing has come a long way from the 4 Ps of yesteryear,

and yet understanding this marketing mix is for your product
remains very relevant today. The marketing mix serves as an
excellent touchstone for continually checking that you are
covering all of the bases in your marketing campaign.
d. Distribution:-

Under this the management should select and manage the

trade channels through which it wants the product to reach the
market at the right time. It is also required to develop a
distribution system for physically handling and transporting the
products through these channels viz. the intermediary.

A company’s marketing effort should start and end with the

customers. Management should select its market targets analyze
them carefully and then develop a programme for each of those

Product Price

Variety List price

Quality Discounts

Design Allowances

Features Payment

Promotion Place
Advertising Customers Channels

Personal Coverage
promotion Locations
Fig 4.1 the four P’s of Marketing Mix

Price: The price you set for your offering plays a large role in its
marketability. Pricing for offerings that are more commonly
available in the market is more elastic, meaning that unit sales
will go up or down more responsively in response to price
changes. By contrast, those products that have a generally more
limited availability in the market (but with strong demand) are
more inelastic, meaning that price changes will not affect unit
sales very much. The price elasticity of your offering can be
determined through various market testing techniques.

Marketing factors are those on which the company has no

direct control but they affect the working of the market
programme. They are the consumer behavior, competition,
pattern of the distribution system and government control.

B. Marketing Factors:-

These are the factors which the company has direct control.
They are product planning. Brand policy, distribution, channels
personnel selling policy sales promotion and market research.

So the market factors influence that no control over their

products. It losses its independence regarding fixing a price for
their products. The Varun motors is also facing that it has no
power to fix a price particularly out side the state. With in the
state on fix price according to the member of co-operative society
union essentially the survey is concentrated in the city of Guntur
in particular and in Guntur district in general is a total of 100
consumer are selected of when 50 are potential areas. These
people at random.

Company is terms of quantity of milk supplied and

population, all the questions are of an open type and multiple
choose type, the number of questions were then in respect of
consumers in Guntur district.
In addition to the primary data information as also been
obtained from secondary data in the shape company literature
test books and journals etc.









Promotion is the process of marketing, communication

involving information, persuasion and influence. In its broadest
sense it encompasses all selling activities – advertising, personal
selling sales promotion are synonymous with marketing.
Promotion has two specific purposes. To communicate market in
formation to consumer, users, and retailers and to per suede and
convenience customer to buy.
Sales promotion consists of short term in connives to
encourage purchase of sales product or service. While advertising
offers reasons to buy a product/service sales promotion offers
reason to buy now.

Promotion has to be decided based on the nature of the

product and various socio cultural factors involved in the situation

1. The promotion programme in case of Varun motors is found to

be the following.
a) Andhra Pradesh state cooperation federation designs and
implements the promotion programme for all the cooperation
b) The media is same throughout to state
c) It is difficult for the individual dairies to design and implement
communication programme

2. Once the communication programme i.e., Advertising and

publicity material is certainly implemented the budget will be
shared by all the number of dairies on an agreed basis.

3. Advertisements are given to create an image on Vijay brands in

T.V news papers, magazines, boarding, and cinema slides. Every
year huge amounts will be spent on Advertisements alone by A.P.
cooperative federation. The share of varun motors worked out
about Rs. 40000 for three months.
4. Every year the employees of Varun motors conduct a survey
and feedback programme in the area covered on the impact of
this communication programme.

Table No. 1
Consumption of Varun motors products:
No. of Percenta
S.No Particulars
Respondents ge
1. Yes 80 80%
2. No 20 20%
Total 100 100

From the above table 80% of the respondents said that
customers are consuming Varun motors products where as 20%
said ‘no’.

Table No. 2
Quality and quantity of Varun motors Products:-

No. of Percenta
S.No Particulars
Respondents ge
1. Yes 90 90%
2. No 10 10%
Total 100 100

Interpretation: -

From the above table, 90% of the respondents said that

they are satisfied with the quality and quantity of the Varun
motors products where as 10% said no.

Table 3
Price levels of Varun motors Products

No. of Percenta
S.No Particulars
Respondents ge
1. Yes 90 90%
2. No 10 10%
Total 100 100

From the above table, 90% of the respondents said that they
are satisfied with the price levels of Varun motors products,
where as 10% said ‘no’

Table 4
Getting Varun motors

No. of Percenta
S.No Particulars
Respondents ge
1. From milk parlor 20 20
2. Direct to home 20 20
3 Others 60 60
Total 100 100

From the above table 60% of the respondents said that they
are getting the Varun motors milk from others where as 20% said
from Parlor and 20% said direct to home.

Table 6
Availability of milk in time

No. of Percenta
S.No Particulars
Respondents ge
1. Yes 90 90
2. No 10 10
Total 100 100

From the above table 90% of the respondents said that the
milk is available in time where as 10% said not getting in time.

Table 7
Parlor near to home
No. of Percenta
S.No Particulars
Respondents ge
1. Yes 80 80
2. No 20 20
Total 100 100
From the above table 80% of the respondents said that the
parlour is near to home where as 20% said ‘no’.

Table 8
Leakages in milk packets
No. of Percenta
S.No Particulars
Respondents ge
1. Yes 10 10
2. No 90 90
Total 100 100

From the above table, 90% of the respondents said that no
leakages in milk packets where as 10% said ‘Yes’.

Awareness of the schemes

S.No Particulars No. of Percenta

Respondents ge
1. Milk cards 75 75
2. Festival offers 25 25
Total 100 100

Interpretation: -
From the above table, 75% of the respondents said that they
are aware of milk and schemes, where as 25% said ‘festival

Table 10
Uses of Varun motors milk
No. of Percenta
S.No Particulars
Respondents ge
1. Curd 40 40
2. Butter milk 50 50
3. Ghee 5 5
4. Tea/Coffee 5 5
Total 100 100

From the above table 50% of the respondents said that they
use the Varun motors milk as butter milk where as 40% said for
curd and 5% for Ghee and 5% said for Tea/Coffee.
Table 11
Purchase under Varun motors products
No. of Percenta
S.No Particulars
Respondents ge
1. Curd 20 20
2. Butter milk 30 30
3. Ghee 10 10
4. Milk 40 40
Total 100 100

From the above table 40% of the respondents said that they
are purchasing Varun motors milk where as 30% said butter milk
and 20% of respondents said that as curd and 10% said ghee.

Table 12
Purchase of 180 Certification

S.N No. of
o Particulars Respondents Percentage

1 Yes 65 65

2 No 35 35

Total 100 100

From the above table, 65% of the respondents said that no
purchase of certification leakages in milk packets where as 35%
said ‘Yes’.


Interest buying new products

No. of Percenta
S.No Particulars
Respondents ge
1. Sweet less Kova 10 10
Sweet lassies
2. 40 40
3. Basundhi 40 40
4. Mango Dringk 10 10
Total 100 100

From the above table 40% of the respondents said that they
are interest to buy sweet lassie packets and 40% said ‘Basundhi’
where as 10% said sweet less Kova and the remaining 10% said
mango drink.

Table 14
Consumption of milk per day
No. of Percenta
S.No Particulars
Respondents ge
1. Below 1 liter 40 40
2. 1-2 liter 30 30
3. 2-5 liters 20 20
4. Above 5 liters 10 10
Total 100 100

From the above table 40% of the respondents said that they
consume below 1 liter where as 30% said 1-2 and 20% said 2-5
and 10% said above 5 liters.

Table 15
Types of delivery System
No. of Percentag
S.No Particulars
Respondents e
1. Door delivery 60 60%
2. Retailers 10 10%
3. Agents 20 20%
4. Other 10 10%
Total 100 100

From the above table, 60% of respondents said that they
prefer the door delivery system where as 20% said through
agents and 10% said through retailers and the remaining 10%
said through others.

Purchases Branded Milk

S.N No. of
o Particulars Respondents Percentage
Varun motors
1 Milk 70 70

2 Vijaya Milk 20 20

3 Dodla Milk 10 10

Total 100 100

From the above table, 70% of respondents said that they
prefer the Varun motors Milk s where as 20% said Vijaya Milk and
10% said Dodla Milk.

Use Varun motors Milk

S.N No. of
o Particulars Respondents Percentage

1 Every Day 90 90%

2 Day by Day 10 10%

3 Weekly 0 0
Total 100 100

From the above table, 90% of respondents said that they
prefer the every day system and the remaining 10% said day by

TABLE – 18
Purchase the Varun motors Curd

S.N No. of
o Particulars Respondents Percentage
1 Yes 60 60
2 No 40 40
Total 100 100

From the above table, 40% of the respondents said that no
purchase of certification leakages in milk packets where as 60%
said ‘Yes’.

1. The consumption of milk is 1 liter in morning hours where as in

the evening hours it is ½ liter for a house hole

2. Consumers of Vijay milk are of low income group and those are
adopting daily payment at booths. Only 7% of Vijaya milk
consumers are utilizing Varun motors milk carcls in buying the

3. It has been observed that most of the consumers of Vijaya milk

preferred obtaining the milk in 500ml low price consumers who
purchase less than 50ml milk, can be captured by the introduction
of 200ml packages
4. Most of the consumers agree that doodpeda is tasty but its
price is high

5. cooling of milk is not maintained at required optimum


6. About 34% consumers of milk are following advance payment

system either to vender’s commission agents or to door delivery

1. The should introduce standardize and high fatty milk to attract
a segment of consumers from middle and high income groups
2. Incentive should be given to commission agent based on their
indents by encouraging them carrying out more milk sales
3. The should adopt an aggressive campaign with special caption
which can educate the consumers about bacteria free milk.
4. Measures to be taken to reduce the price of Kova and packing
of Kova should be made attractive.
5. Messages to be taken to improve quality of butter milk and to
be available in sufficient quantity a the parlors. Butter milk may
be sold through pan shapes on commission basis.
6. Pamphlets/booklets should be published and distributed to
educate ladies in preparing various milk food items like Kova
Sweets thus enabling increase in milk sales.
7. New milk products like rose milk bodem milk etc. may be
Milk distribution should be maintained systematically so that they
can reach customer in time.


Marketing: Marketing is a comprehensive term and it includes all

resources and a set of activities necessary to direct and facilitate
the flow of goods and services from producer to consumer in the
process of distribution

Marketing Management: - Marketing management usually

represents all managerial efforts and functions to operate the
marketing concept not only in letter but also in spirit.

Demand Forecasting: Demand under the free market

economies one of the universal constraints. Limitations on
freedom of Acton, encountered by all marketers
Product: The product is a bundle of all kinds of satisfaction of
both material and non material kinds, ranging from economic
utilities to satisfaction of a social-psychological nature.

Price: Economist defines price as the exchange value of product

or service always expressed in money to the consumer the price
is an agreement between seller and buyer concerning what each
is to receive

Promotion: Promotion is the process of marketing

communication to inform persuades, remind and influence
consumers or users in favor of your product or service

Advertising: Advertising can be defined as mass, paid

communication of goods, services or ideas by an identified

Channels of Distribution: In the field of marketing, channels of

distribution indicates routes or pathways through which goods
and services flow, or move from producers to consumers.

1. ICMR - Indian Council of Medical Research

2. NDDB - National Development Board
3. IDC - Indian Corporation
4. GATT - General Agreement on Trade and Tariffs
5. NMG - National Milk Grid
6. GDMPCUL - Guntur District Milk Producer’s cooperative
Union Ltd
7. SNF - Solids-Not-Fat
8. PPPP - Product, Price, Place, Promotion
9. CCCC - Customer needs and wants
cost of Customer
10. HPCL - Hindustan Packaging Company Ltd
11. GBMS - Greater Bombay Milk Scheme
12. SMP - Skim Milk Powder

After completion of the study “MARKETING MIX ANALYSIS ” in

VARUN MOTORS DAIRY., Vadlamudi it is observed that in
performance of the company is improving year by year. The
company sales were increasing rapidly compared to the previous
years in both villages and towns.

The company sales are increased extra-ordinarily by maintaining

good quality and product is available at competitive rates even
though they are not promoting the product in mass media.

1. Principles of marketing - PHILIP KOTLER

2. marketing Management - PHILPKOTLER
3. consumer Behavior - SHUFFMAN AND KARK.
4. Fundamentals of Marketing- William. J. Stanston
5. Market research - J.C. Ganthi


1) The consumer Magazine

2) Business World