SIP on Brand Awareness of Eicher Tractor PDF

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PROJECT REPORT ON A STUDY ON BRAND AWARENESS OF EICHER TRACTOR LTD WITH SPECIAL REFRENCE TO MOLAI RAJ MOTORS, SHAHADA SUBMITTED TO UNIVERSITY OF PUNE BY RAJ MURTAZA ZAKIUDDIN GUIDED BY DR. VARDHAN CHOUBEY MBA – II (2014-2016)

MET’s INSTITUTE OF MANAGEMENT, NASHIK, MAHARASHTRA, INDIA - 422003

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CERTIFICATE

This is to certify that Project Report titled A STUDY ON BRAND AWARENESS OF EICHER TRACTOR LTD WITH SPECIAL REFRENCE TO MOLAI RAJ MOTORS, SHAHADA is a bonafide work carried out by Mr. RAJ MURTAZA ZAKIUDDIN , of MBA II of MET’s Institute of Management, Nasik, Maharashtra, India 422003, as a part fulfillment of MBA Degree of University of Pune.

He has worked under our guidance and satisfactorily completed the Project Work.

Place: Nasik

Signature of Guide

Date:

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Signature of Director

INDEX Sr.No. Particulars Title Page Certificate of the Institute Certificate of The Organization Acknowledgement Executive Summary Chapter 1: Introduction of the Subject Chapter 2: Profile of the Organization Chapter 3: Research Methodology 3.1 Need of the Study, 3.2 Objective of Project, 3.3 Type of Research Study, 3.4 Tools of Data Collection, 3.5 Sampling Method, 3.6 Tools of Data Analysis

Page No. 1 2 4 5 6-25 26-47 48 49 49 49 50 50

51 Chapter 4:Data Presentation & Data Collection 52-66 Data Analysis and Interpretation Chapter 5: Findings & Conclusion 67-70 Chapter 6:Appendices 71 Questionnaire 72-75 Glossary of Terms 76-77 Bibliography/References 78

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Acknowledgement

I take occasion to thank “Molai Raj Motors” for giving me opportunity to work on this project, which helped me to increase my practical knowledge and get experience to interact with customers. I would like to thank my project guide Dr. Vardhan Choubey sir, for his guidance, co- operation, and encouragement. I would like to thank Director, sir Dr. Nilesh Berad for his guidance. I am also grateful to Mr. Zakiuddin Raj (proprietor) for providing me necessary information and proper approach towards my study and project work. I thank him for all the guidance and co- operation he gave. I am always thankful to my family members who always gave me moral support and advice, my friends, especially all respondents of my survey.

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Executive Summary: My project work was to find out the brand awareness of Eicher Tractor Ltd in current scenario. Eicher tractor is major player in tractor industries after Mahindra & Mahindra Tractors. It has scope to improve in sales & increase market share. For this brand awareness of brand, problems face by dealer, customer perception towards the product and promotional activities of dealer. To find out this information, was my project. Market in Shahada town was targeted. Survey was conducted using questionnaire. The information about various attributes and factors was collected. All the data collected, primary data filtered and analyzed, represented in the forms of graphs and charts. Secondary data was also used in report such as company profile, product profile etc. on the basis of analysis of data, conclusions were drawn. The survey gave knowledge about customer’s satisfaction, loyalty and their feel about the brand. The survey gave an insight into organized market of Eicher Tractor and competitors of Eicher Tractor. On the basis of findings and conclusions suggestions were given. There are many limitations of this project like biased reply, customers busy, area limitations, time constraints as the project has time limit of 2 months etc.

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CHAPTER-1  Introduction

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INTRODUCTION: India being an agriculture dependent country, farm equipments such as tractors have played a very crucial and significant role due to which where we can find the consistency and efficiency in the economy. In today’s competitive world, a firm has to attract the interest of the customers and satisfy by providing effective services to them consistently as per their taste and requirements. They have to understand and know customer needs and preferences. Marketing occupies an important position in the organization with regard to business. Peter Ducker, points out that the purpose of marketing or business is “to create a customer”. Few decades back the seller was the king of the market, the simple reason for this was lack of competitions. Marketing is the human activity directed at satisfying human wants through the exchange of goods and services. Marketing management occupies the most important position in business management. Marketing management in a firm is critical as it deals with customers and their needs. The major task of marketing management is to adopt firm’s resources to market opportunities. The essence of marketing concept is that the customer and not the product shall be the heart of the entire business system. It emphasizes on customer oriented marketing process, plans. Policies and programs, which are formulated to serve efficiently the customer demand. “Marketing is so basic that it cannot be considered as a separate function. It is the whole business seen from the point view of its final results i.e., from the customers point of view”. A customer is the king and has the right to choose from a large variety of offering. He is the central point and all marketing activities revolve around him. Today market is a more consumer oriented in the sense all the business operations revolve around the customer satisfaction and services. Thus, marketing is often dynamic, challenging and rewarding. It can also be frustrating and even disappointing but never dull. The topic “A study on the brand awareness of Eicher Tractor Ltd” is chosen to study the Brand Awareness adopted in Molai Raj Motors, dealers for Eicher Tractor Ltd. This project deals with how Eicher Tractor Ltd. defines its consumer target and uses its marketing tools in the best way to attract and satisfy their needs and wants competitively and profitably. Here marketing

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functions are limited to the function of buying and selling, but they include all functions necessary to satisfy the customer such as financing, after sales services, etc. Customer oriented marketing approach points out the primary task of business enterprise is to study needs, besides the value of potential customer on the basis of latest and accurate knowledge of marketing demand. Marketing management usually represents all managerial efforts and functions to operate the marketing concept, not only in letters but also in the spirit. Marketing concept demand customer oriented marketing plans, programs and policies so that the merchants can assume perfect correlation between demand and supply. Thus, marketing is a matching process by which a producer provides a marketing mix i.e., product, price, promotion and physical distribution that meet consumer’s demand of a target market within the limits of society. Finding out “A study on the brand awareness of Eicher Tractor Ltd” is the important statement of the problem in this project. This will help the firm or company to improve their marketing strategies as well as servicing strategies adopted by them. It also helps them to know their current position in the market.

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Conceptual Framework: Brand: A brand is a name used to identify and distinguish a specific product, service, or business. A legally protected brand name is called a proprietary name.

History: The word “brand” is derived from the Old Norse brandr, meaning “to burn”. It refers to the practice of producers burning their mark (or brand) onto their products. Although connected with the history of trademarks and including earlier examples which could be deemed “proto brands” (such as the marketing puns of the “Vesuvinum” wine jars found at Pompeii), brands in the field of mass-marketing originated in the 19 th century with the advent of package goods. Industrialization moved the production of many household items, such as soap, from communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, extending the meaning of “brand” to that of trademark. Bass & Company, the British brewery, claims their red triangle brand was the world’s first trademark. Lyle’s Golden Syrup makes a similar claim, having been named as Britain’s oldest brand, with its green and golden packaging having remained almost unchanged since 1885. Cattle were branded long before this; the term “maverick”, originally meaning an unbranded calf, comes from Texas rancher Samuel Augustus Maverick who, following the American Civil War, decided that since all other cattle were branded, his would be identified by having no marketing at all. Even the signatures on paintings of famous artists like Leonardo Da Vinci can be viewed as an early branding tool. Factories established during the Industrial Revolution introduced mass-produced goods and needed to sell their products to a wider market, to customers previously familiar only with locally-produced goods. It quickly became apparent that a generic package of soap had difficulty competing with familiar, local products. The packaged goods manufacturers needed to convince the market that the public could place just as much trust in the non-local product. Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima and Quaker Oats were among the first products to be ‘branded’, in an effort to increase the consumer’s familiarity with their products. Many brands of that era, such as Uncle Ben’s rice and Kellogg’s breakfast cereal furnish illustrations of the problem. Around 1900, James Walter Thompson published a house ad explaining trademark advertising. This was an early commercial explanation of what we now know

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as branding. Companies soon adopted slogans, mascots, and jingles that began to appear on radio and early television. By the 1940’s, manufacturers began to recognize the way in which consumers were developing relationships with their brands in a social/ psychological/ anthropological sense. From there, manufacturers quickly learned to build their brand’s identity and personality (see brand identity and brand personality), such as youthfulness, fun or luxury. This began the practice we now know as “branding” today, where the consumers buy “the brand” instead of the product. This trend continued to the 1980s, and is now quantified in concepts such as brand value and brand equity. Naomi Klein has described this development as “brand equity mania”. In 1988, for example, Philip Morris purchased Kraft for six times what the company was worth on paper; it was felt that what they really purchased was its brand name. Marlboro Friday: April 2, 1993- marked by some as the death of the brand- the day Philip Morris declared that they were to cut the price of Marlboro cigarettes by 20%, in order to compete with bargain cigarettes. Marlboro cigarettes were notorious at the time for their heavy advertising campaigns, and well-nuanced brand image. In response to the announcement Wall Street stocks nose-dived for a large number of ‘branded’ companies: Heinz, Coca Cola, Quaker Oats, and PepsiCo. Many thought the event signaled the beginning of a trend towards “brand blindness”, questioning the power of “brand value”.

Concepts: Brand is the image of the product in the market. Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is and a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called integrated marketing. Careful brand management seeks to make the product or services relevant to the targeted audience. Therefore cleverly crafted advertising campaigns, can be highly

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successful in convincing consumers to pay remarkably high prices for products which are inherently extremely cheap to make. This concept, known as creating value,

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Essentially consists of manipulating the projected image of the product so that the consumer sees the product as being worth the amount that the advertiser wants him/her to see, rather than a more logical valuation that comprises an aggregate of raw materials, plus the cost of manufacturer, plus the cost of distribution. Modern valuecreation branding-and-advertising campaigns are highly successful at inducing consumers to pay, for example, 50 dollars for a T-shirt that cost mere 50 cents to make, or 5 dollars for a box of breakfast cereal that contains a few cent’s worth of wheat. Brands should be seen as more than the difference between the actual cost of a product and its selling price- they represent the sum of all valuable qualities of a product to the consumer. There are many intangibles involved in business, intangibles left wholly from the income statement and balance sheet which determine how a business is perceived. The learned skill of a knowledge worker, the type of metal working, the type of stitch: all may be without an ‘accounting cost’ but for those who truly know the product, for it is these people the company should wish to find and keep, the difference is incomparable. Failing to recognize these assets that a business, any business, can create and maintain will set an enterprise at a serious disadvantage. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiments in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, Disney has been successful at branding with their particular script font (originally created for Walt Disney’s “signature” logo), which it used in the logo for go.com. Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, storebranding product), people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.

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Brand Building Tools: There are various tools used by the marketers to build their brands. In early days, TV advertisements were the most effective brand building tool. There were very few TV channels and people watched movies and ads with equal interest. Nowadays, most of the viewers are ignoring the ads. In fact, many more are simply not watching TV or switched to internet and other recreational activities. So the major challenge to the Marketers are to use effective tools, in order to attract the attention of the consumers to their brands. Some of the important brands building tools are: 1. Public relations

2. Press releases

3. Sponsorships

4. Corporate websites

5. Exhibitions

6. Event marketing

7. Public facilities

8. Online advertisements 9. Broadcast media

Brand Awareness: Brand awareness is a marketing concept that measures consumer’s knowledge of a brand’s existence. At the aggregate (brand) level, it refers to the proportion of consumers who know of the brand. The likelihood, that consumers recognize the existence and availability of a company’s product or services. Creating brand awareness is one of the steps in promoting a product.

INVESTOPEDIA EXPLAINS Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. For example, in

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the soft drink industry, very little separates a generic soda from a brand-name soda, in terms of taste. However, consumers are very aware of the brands Pepsi and Coca Cola, in terms of their images and names. This higher rate of brand awareness equates to higher sales and also serves as an economic moat that prevents competitors from gaining more market share. Brand awareness refers to customer’s ability to recall and recognize the brand under different conditions and link to the brand name, logo and jingles and so on to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs to and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products.

How do customers remember? The tendency of a brand to be thought of in a buying situation is known as “brand salience”. Brand salience is “the propensity for a brand to be noticed and/or through of in buying situations” and the higher the brand salience the higher its markets penetration and therefore its market share. Salience refers not to what customers think about brands but to which ones they think about. Brands which come to mind on an unaided basis are likely to be the brands in a customer’s considerations set and thus have a higher probability of being purchased. Advertising weight and brand salience are cues to customers indicating which brands are popular, and customers have a tendency to buy popular brands. Also, an increase in the salience of one brand can actually inhibit recall of other brands, including brands that otherwise would be candidates for purchase. It is widely acknowledge that buyers do not see their brand as being any different from other brands that are available. They buy a particular brand because they are more aware of it, not because it is distinctive, or has point of difference. We not know that all decision made by humans involve memory process to a greater or lesser extent. Incoming information from the external environment travels by the sensory memory into the short-term (or working) memory (STM) but it is not acted upon in a very short time the brain simply discards it. But salient information that is important and received on a regular basis through different channels is passed to the long term memory (LTM) where it can be stored for many years. Memories are stored or filed via connection between new and existing memories in the different parts of the memory. They are laid down in a framework making some memories easier to access than others. Recall is the process by which

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individual reconstruct the stimulus itself from the memory, removed from the physicality’s of that reality.

Seven Ways to Build Brand Awareness To some, branding might not feel like a tangible aspect of running a business. It can’t be seen like a product on a shelf, or counted like a cash drawer at the end of the night. But, branding is the reason people pay three times more for a product at one store over another. Good branding is the product of a clear vision, and nobody knows more about vision than small business owners. But, with limited resources, creating a brand identity can be tricky. Fortunately, building brand awareness on the internet does...