Kinetic Group of Company

8/6/2019 Kinetic Group of Company

1/58

INDEX

Sr.No.

Particulars PageNo

1 General Information 1

2 Increasing Role of Marketing 9

3 Marketing Mix 13

-Product Mix 16

-Price Mix 23

-Place Mix 30

-Promotion Mix 38

4 SWOT Analysis 54

5 Suggestion 55

6 Conclusions 56

7 Bibliography 57


2/58

CONTENTS

Sr. No. Particulars Page

No

1 Introduction 2

2 Overview Of Kinetic 3

3 History or Kinetic 4

4 Achievements 5

5 Social Responsibility Initiative 7

2


3/58

Introduction

India is the second largest producer of two-wheeler after

China. Despite the poor road infrastructure and merge

producing power, the two-wheeler industry in India has

enjoyed a wider appeal with the masses as a means of private

transportation. Two wheelers are generally classified in three

types i.e. scooters, motorcycle and mopeds.

Kinetic has become synonymous with pioneering

activities, in the Indian automobile industry. Kinetic pioneered

the concept of personalized transportation in India, with the

launch of Kinetic Luna, in 1972. Since then, the brand Kinetic

Luna has become generic with mopeds.

Kinetic also takes the credit of revolutionizing the

scooter industry in India. It was the first to introduce a

gearless scooter with advanced features like TLAD

suspension, auto choke, auto fuel cork, etc thus offering

convenience and comfort to the earlier hassled scooter

customer.

Kinetic now has the distinction of being Indias one of

the two wheeler companies who offer a full range of vehicles

which range right from mopeds, step-thrus, scooterettes,

scooters to motorcycles.

3


4/58

Overview Of Kinetic

NAME OF THE COMPANY : - Kinetic group of company

SIZE OF THE UNIT : - Large scale unit

FORM OF ORGANIZATION : - Limited Company

REGISTER OFFICE : - D-1 Block,

Plot No. 18/2,

M.I.D.C,

Chinchwad,

Pune 411 019.

PHONE NO. :- (020) 27474301-5

FAX NO. :- (020) 27475842-3

WEB SITE :- www.kineticindia.com

E-MAIL I.D. :[email protected]

YEAR OF ESTABLISHMENT: - 1974

NAME OF THE PRODUCT : - Two wheeler

FOUNDER : - Late Shri. H.K. Firodia

4
http://www.kineticindia.com/mailto:[email protected]://www.kineticindia.com/mailto:[email protected]


5/58

History Of Kinetic

The Kinetic Group of companies is a leading player in

the automotive industry in India. Kinetic Group, founded in

1974, has sold over 6 million vehicles in India. It has a history

of innovation and pioneering and has introduced several new

concepts that have revolutionized the two wheeler industry.

Kinetic brought the concept of personalized transport to India

with the launch of the moped Luna in 1974. In 1984, it

brought to the Indian customers the first-ever gearless scooter

which has come to symbolize comfort, convenience and

universal appeal. It has also brought to India new technologies

such as four valve engines, electric start on scooters and

motorcycles, v- twin engines, USD forks etc. It is the only

company to offer top-end world class bikes Comet and Aquila

to Indian bike enthusiasts.

The group has an international technical collaborations

with Hyosung Motors of Korea It has three state of the art

manufacturing facilities at Koregaon Bhima, Ahmednagar and

Pithampur; and a nationwide network of nearly 450 dealersand over 1,000 service centers. The company exports vehicles

to developed countries like USA, Canada, Latin America,

Europe, Africa, Middle East and South Asia and has won

several excellence awards for exports on state and national

level.

Current popular brand names include Luna, Nova 135,

Zing, Velocity, Boss, Aquila, Comet. The company ispreparing to launch some very exciting Italian designs over

the next two years.

5


6/58

Achievements

1964 Foundry and Plant of Jayhind Industries set up.

1970 Kinetic Engineering Ltd, incorporated for the

purpose of manufacturing 2 wheelers.

1974 Jayahind Sciaky, set up in collaboration with

Sciaky Intertechnique S.A. of Switzerland.

1980 Kinetic group joins hands with Twentieth Century

Finance Corp. And Integrated Finance Ltd., to float

Joint Venture Finance companies to finance

Kinetic 2 wheelers.

1981 ZF Steering Gear India Ltd. Launched. (Kinetic

enters into collaboration with Zahnradfabrik

Friedchshafen A.G. of West Germany).

1984 Kinetic Group enters into collaboration with Honda

Motor Company of Japan and a new company

Kinetic Honda Motor Ltd. is born.

1996 Kinetic group takes over Integrated Kinetic Fincap

Finance Ltd and the company is renamed as

Kinetic Lease and Finance ltd.

1996 Kinetic collaborates with Hyundai Corporation of

South Korea to form a new company - Kinetic

Transportation Products Ltd - to manufacture

elevators, escalators and Auto parking systems

with the latest state of the art VVVF technology.1997 Kinetic group take over Twentieth Century Kinetic

Finance and the company is now renamed as

Kinetic Fincap Ltd.

1998 History is created as Kinetic acquires major stakes

in Kinetic Honda Motors Ltd.

1998 Kinetic Communications Limited set up in

technology & license agreement with Daewoo

6


7/58

Electronics Limited of South Korea, for

manufacturing trading and marketing of Colour

Monitors for PC's.

1999 Kinetic Motor Company Ltd. is formallyincorporated.

2000 Kinetic begins building product portfolio and over

the next few years, makes a strong entry into every

segment of the motorcycles industry

2001 Kinetic strikes alliance with Korean two wheeler

maker Hyosung Motors which over the next few

years brings to India revolutionary motorcyclessuch as the four valve engined GF, the super sports

bike Comet and the cruiser Aquila

2002 Kinetic launches 4-stroke scooter Nova which goes

on to win scooter of the year awards from ICICI

bank - Overdrive, from Business Standard

Motoring and also the Design excellence award in

automobile design from National Institute of

Design - Business world

2004 Kinetic strikes alliance with Italjet Moto Spa from

Italy, acquires production lines and complete

distribution rights to seven bestselling scooter

designs, chalks out a plan to revamp the two

wheeler segment in India

2005 Kinetic enters auto component industry for

manufacture of engineering components and toolengineering for domestic as well as international

companies

7


8/58

8


9/58

Social Responsibility Initiatives

Kinetic has initiated and runs a project called

"Swapnabhoomi" (Dreamland) in Parbhani District of

Maharashtra where a cluster of 150 villages have been

adopted and are provided inputs for sanitation, literacy,

vocational guidance, water conservation, irrigation, women'supliftment, village industries etc. These villages can aspire to

be called ' ideal ' villages.

Kinetic runs a special program for rehabilitation of

leprosy afflicted persons. by way of curing, caring, training

and providing gainful rehabilitation. This program has been

sustained for over 15 years, which is indicative of the

companys commitment and focused approach to the cause ofempowerment and rehabilitation of leprosy patients.

Kinetic has formed a special alliance with Mission:

Vijay II, a foundation that assists our countrys war heroes in

rehabilitation. The alliance covers all ex-servicemen and war-

wounded soldiers or their widows or families, and offers

them an opportunity for earning livelihood after they are no

longer able to serve in the army or have lost their familymembers. Through this alliance with Kinetic, the war

wounded, ex-servicemen and war widows are offered an

opportunity to set up Authorized Sales and Service stations

for Kinetic. These would be set up in the Tehsils or villages

across the country. They will earn commission on all sales

and also income from servicing of Kinetics two wheelers.

Kinetic will extend all training and support required for them

to carry out this activity. The alliance has been formed on anational level, so the program is open across the country.

Kinetic has sold over 60 lakh vehicles across India, so this

program can generate sizeable income.

In addition to these three on-going programs,

Kinetic also donates cash or assistance at times of emergency.

For example, Kinetic had donated financial assistance toLatur village when it was devastated by an earthquake.

Kinetic has also specially modified and donated scooters to

soldiers who lost their legs in the Kargil War. These scooters

are modified so as to help them get around despite their

disability.

9


10/58

INDEX


No

1 Introduction 10

2 Importance of Marketing Department 11

3 Marketing Yesterday and Today 12

10


11/58

Introduction

Marketing is the process of selling something at a shop

of at the market place, but according to modern marketing

concepts selling is not an important part of marketing but it is

the tip of the marketing iceberg. There will always, one can

assume, be need for some selling. But the aim of marketing is

to make selling superfluous.

Marketing is the process of planning and executing the

conception, pricing, promotion and distribution of ideas goods

and services to create exchanges that satisfy individual and

organizational goal.

-Philip Kotler

Marketing occupies an important position in business.

Traditional view of the marketing asserts that the customers

will accept whatever firm will produce. But now a days view

of marketing is changed and customers are given more

emphases than any other and firm produce every thing as per

the wish of customers.

Firm should have a very efficient marketing department

which tries to provide maximum satisfaction to the customers

while having reasonable profit on other hand. Marketing is

more than a company department. It is orderly and insightful

process for thinking about and planning for markets. The

process is applicable to more than goods and services.

Everything could be marketed and now marketing isconsidered as the universal process because marketing is used

in every area.

11


12/58

Importance Of Marketing Department

Marketing is the focus point of all business activities

because the objectives of all business enterprise are to satisfy

the needs and wants of the customers. Production and

purchase has no meaning unless a firm is able to market the

goods and services. Nothing happens unless somebody sells

something. Marketing is the distinguishing feature of

business. A business is essential part from all other human

organization by the fact that it markets the product or services.

Marketing is the basic operative function of all business firms.

It serves on the basis of business planning and generates

revenue for the firm. Efficient marketing management is

essential for the survival and growth of every enterprise.

Marketing is a system of integrated business activities

designed to develop marketing plans and programs leading to

the satisfaction of customer wants.

Marketing department represents an important functional

area of business management efforts for the flow of goods and

services from the producer to the consumers.

Marketing department of the kinetic is a crucial part of

its organization. The company can achieve its subsidiary

objectives along with the primary objectives with the help of

marketing department. It not only helps the company to

achieve the goals that are directly related to marketing

department but also helps in achieving the goals that arerelated to other departments of the organization.

With the help of the marketing department kinetic as a

company has not only been successful in gaining the sales

volume but also earned goodwill for itself. As a result of the

efforts made by the marketing department, Kinetic is enjoying

a prestigious position in the automobile industry.

12


13/58

Marketing Yesterday And Today

Business is changing at the speed of thought literally,

as across the globe, somewhere or the other; someone comes

up with something that revolutionizes the entire concept of

business, as it is understood then. To keep pace with these

developments, marketing has become more intricate and

scientific than ever before. Today no firm can afford to rest on

past success and be satisfied about its market. Competition is

more intense and cutthroat than ever before, and the firm has

to meet all these challenges, most in the form of direct or

indirect marketing strategies.

Yesterday was different, in the sense that firms that

enjoyed a good market reputation did not need to market

themselves to their consumers again and again. But today,

times have changed. Keep competition poses challenges that

have to met and countered, and the customers are more

demanding than they were around 20 years back. Past

achievements are no longer a companys claim to supremacy.

Earlier, marketing was confined to the narrow scope of

selling. But now, marketing is concerned with all activities

aimed at finding wants and filling them. The mantra followed

the world over is customer is the king. It is the customer

alone who keeps the business going and provides employment

to people. If the current trends were anything to go by, the

future would only add to the misery of unprofessional or

pedantic forms. Only firms willing and able to changeaccording to changing market conditions and consumer

demands would thrive in the market.

13


14/58

INDEX


No

1 Introduction 14

2 Product Mix 16

3 Price Mix 23

4 Place Mix 30

5 Promotion Mix 38

14


15/58

Introduction

The marketing mix activities of product, planning,

pricing and distribution are performed mainly within the

organization and its marketing partners. However, with

promotion activities the firm communicates directly with

potential customers will continue to look for quality but their

interpretation is changing. They will be more interested in

values such as response, service etc. positioning in the right

manner has, therefore, become a buzz word of marketing and

advertising people not only an Indian but all over the world.

Marketing depends heavily or an effective

communication flow between the company and the consumer.

Manufacturing a product and making it available in the market

is not enough. It is more important to make it known to the

consumer that the product is available in the market. In a

competitive market, where several firms are striving to win

over consumer, it is not enough if the availability of a product

only is made known to consumer. It is essential to propagate

the distinctive features of the product, moreover, producers at

in one city and consumers who are spread throughout the

country or even, world, can be contacted only through

promotion, the firm should also get feedback an how the

consumers accept its produces and interpret its messages. This

multidimensional function can be carried out only through an

effective continuous and two way flow of information

between the firm and the consumer.

A successful marketing strategy must have a marketing

mix as well as target market for which the marketing mix is

prepared. The elements that make up marketing mix are 4 and

they are as under;

I. Decision on product or service

II. Decision on price

III. Decision on promotionIV. Decision on place or distribution

15


16/58

The success of company will be assorted to only by

buying the right product linked with the right promotion at the

right price & in the right place. What is right is to be declared

by the customer. The decision on one element can also affectthe other elements because the marketing mix is changed as

per change in environmental force.

In the simplest manner, the basic marketing mix is the

blending of 4 inputs or submits which forms the marketing

system. The 4 inputs are also known as the 4ps of marketing

mix. They are;

1) Product mix2) Price mix

3) Promotion mix

4) place mix

16


17/58

CONTENT

1. Introduction

2. Product line

Commuter motorcycle

Premium Motorcycle

Sporty Motorcycle

Family Scooter

Load carrying vehicles

17


18/58

I ntroduction

Product is an important component of the marketing

mix, It plays a central role in the activities of allorganizations, for it is the medium through which they may

seek to achieve their dual objectives of maximizing both

consumers and organizational satisfaction.

It is not necessary that product of the company is always

in the form of good or commodity, product might be in the

form of service also.

Firm has to take many crucial decisions regarding its

products. Firm has to decide that when to introduce any new

product, when to modify it and when to withdraw it.

Product mix is referred to as product portfolio, the

composite of the products offered to sale by a firm or a unit.

Product line is group of closely related products whichare able to satisfy class of need, to be used together, to be sold

to the same customer groups, to be moved through the same

distribution channels, or fall within a given price range.

18


19/58

Product Line

Commuter Motorcycles

The super smart and super stylishKinetic Stryker with oil filter

technology and gas-filled rear

shock absorbers.

The only motorcycle in India with

four valves, it is gutsy and untiring.

For the sub-50,000 price, you get

one of best looking motorcycles in

India, premium tyres and electric

start as standard!

The Kinetic Velocity is designed

to be the ultimate commuter bike

offering performance, smoothness,

comfort, style, fuel efficiency and

many user-friendly features at an

unbeatable value price!

Kinetic Boss 115 gives a boost of

power to the economy segment for

the first time in terms of a higher

engine cubic capacity and also

power in BHP, without mileage

compromise - an important - an

important factor to many buyers of

this category.The Kinetic Boss has been

specifically designed to give the

customer outstanding value for

money. The bike is strong and

rugged, powerful, very good

looking and has an excellent fuel

economy of 80 KMPL on the road.

Premium Motorcycles

19
http://www.kinetic2wheelers.com/showroom/motorcycles/bossEX/index.phphttp://www.kinetic2wheelers.com/showroom/motorcycles/boss115/index.phphttp://www.kinetic2wheelers.com/showroom/motorcycles/velocity/index.phphttp://www.kinetic2wheelers.com/showroom/motorcycles/gf125/index.phphttp://www.kinetic2wheelers.com/showroom/motorcycles/stryker/index.php


20/58

The most desirable motorcycle in

India has arrived. If you love sports

bikes, your prayer has finally been

answered. Welcome the high spec,

high performance sports bike

Comet 250.

The Aquila features a 250cc, V-

twin, liquid cooled engine, 26 bhp

of power at 9000 RPM, and a top

speed of 130 kmph; loads of style

with dual tone colors and

abundance of chrome and highly

comfortable ergonomics.

Sporty Motorcycles

The Laser combines exceptional

performance with styling, handling

and comfort of riding. The GF

Laser is given a fresh, sporty look

with a half fairing, twin headlamps,

dual tone color schemes anddashboard-like instrument console.GF 170 is the next benchmark in performance

bikes from the Kinetic-Hyosung association

after the much acclaimed cruiser Aquila. We

aim to change the price-performance equation

of this segment - the GF combines exceptional

performance with styling, handling and

comfort of riding.

20
http://www.kinetic2wheelers.com/showroom/motorcycles/gf170/index.phphttp://www.kinetic2wheelers.com/showroom/motorcycles/laser/index.phphttp://www.kinetic2wheelers.com/showroom/motorcycles/comet/index.php


21/58

Family Scooters

The exciting Kinetic Blaze is the

first launch from Kinetic's seven-

vehicle Italiano Series. With itsaggressive and glamorous Italian

design, generous proportions and

majestic presence, the very special

Blaze makes an instant celebrity of

its rider. The high-spec Blaze also

has ample go to match the show

with a powerful 165cc, 4 valve

engine that pumps out 11.6 bhp,coupled with automatic

transmission, the Blaze is a breeze

to ride short distance or long

tours.

The Kinetic 4-s builds on the

illustrious legacy of comfort,

Convenience, adventure, reliability

and endurance built over a Decadeof proven performance and

delighted customers.

Imagine a scooter that effortlessly

rides up steep mountain roads.

Imagine a scooter that smoothly

glides over potholed and dug up

streets. Imagine a scooter that

easily handles turns and sharpcurves. Imagine a scooter that

silently makes its way through high

traffic roads. Imagine Advanced

Acceleration and Handling

Optimiser (AAHO!). Welcome the

Kinetic Nova 135.

Kinetic Nova is Indias most

critically acclaimed product. Voted

21
http://www.kinetic2wheelers.com/showroom/scooters/novaEX/index.phphttp://www.kinetic2wheelers.com/showroom/scooters/nova135/index.phphttp://www.kinetic2wheelers.com/showroom/scooters/4s/index.php


22/58

Scooter of the Year 2003 by ICICI

bank Overdrive and Voted Scooter

of the Year 2003 by Business

Standard Motoring amongst other

recognitions.

Kinetic Zoom is India's most loved

scooter with over 16 lakh happy

users , upgraded powerful 110 CC

engine with best pickup in class

and 50 kmpl mileage (on road)

Scooterettes

Conceptualized as the small

Kinetic, Kine brings together cool

looks, high comfort & convenience

and power packed performance in a

lightweight and easy to handle

package, along with a reduced

price tag

Zing is Kinetic's special offering

for the young heart. Kinetic Zing carriesthe trademark comfort and convenience

features that Kinetic scooters are known for -

auto start, auto gears featuring smooth

variomatic transmission. In addition, it shows

off the latest global design and an advanced

new engine.

22
http://www.kinetic2wheelers.com/showroom/scooters/zing80/index.phphttp://www.kinetic2wheelers.com/showroom/scooters/kine/index.phphttp://www.kinetic2wheelers.com/showroom/scooters/zoom/index.php


23/58

Load carrying Vehicles

The Kinetic King 100 is a double

role bike because it has power and

'shaan' of a motorcycle!

Hardworking and economical as

well with tremendous load carrying

and mileage.

V2 is Kinetics' 60cc vehicle

catering to the needs of lakhs of

people across the country. It's the

only moped with a variomatic

transmission and gives great pickup in no time and pulls heavy load

with ease.

Economical and Fun

India's first moped which made Luna a generic

brand. Very convenient to ride with negligible

maintenance cost it appealed to the hearts of

millions of people across the spectrum.

23
http://www.kinetic2wheelers.com/showroom/utilityvehicles/luna/index.phphttp://www.kinetic2wheelers.com/showroom/utilityvehicles/v2/index.phphttp://www.kinetic2wheelers.com/showroom/utilityvehicles/king/index.php


24/58

CONTENT

1. Introduction

2. Pricing Objective

3. Factors affecting pricing

4. Pricing policy

5. Price list

6. Discount & allowance

7. Credit terms

8. Price sensitivity

9. Govt. policy

10. Pricing method

24


25/58

Introduction

Price is the only element in the marketing mix that

creates sales revenue; the other elements are costs. Pricing is avery critical decision in marketing management. The main

objective of the firm, i.e. to earn a profit very much depends

upon the correct price decision. After meeting all the costs

involved, the sales revenue figure is however maternally

affected by the price charged for the product. The company

should also keep competitors costs, price, and offers in mind

and then fix the price of their product. Sometimes one price is

fixed for the product but in some cases, different prices are setfor different persons, i.e. authorized dealers, dealers, sub-

dealers and customers.

In KINETIC price of a product is decided considering various

factors like,

Raw material purchase

Transportation

Processing expense

Taxes

Marketing expenses

Based on Geography

Commissions to middlemen

KINETIC has adopted flexible and reasonable pricing

policy. At the end of every month, directors of each zone,marketing officers meet together at the marketing office. They

check the suitability of the current price in the light of current

degree of competition; changes in demand, advertising and

other services etc then they fix up their product prices.

25


26/58

The pricing mix should cover the following points: -

1. Pricing Objective

2. Factors affecting pricing

3. Pricing policy4. Price list

5. Discount & allowance

6. Credit terms

7. Price sensitivity

8. Govt. policy

9. Pricing method

1. PRICING OBJECTIVE :-

To take decision regarding the price is most

difficult task for manager. A firm must set a price a price

for the first time. When the firm develops or acquires a new

product, when it introduces its regular product into a new

distribution channel or geographical area and when it enters

into a new contract work.

Thus, every marketing planning involves a pricingdecision. Therefore all marketing planners must make

accurate & planned pricing decision. The company has

some definite idea about what it wants to accomplish with

its particular product.

a) To achieve target return of investment.

b) To stabilize the price.

c) To maintain or improve target share of market.d) To meet competition.

e) To prevent competition.

f) To maximize profit.

g) To maintain an image.

2. PRICING POLICY :-

Pricing is an important element in the marketing mix.

Arrival at the right selling price is essential in soundmarketing mix. Price policies provide the general framework

26


27/58

within which the price decision can be made. Price policies

are guidelines to carry out pricing strategy. Price policy must

change and adopt themselves with the changing objectives and

changing environment.

Price of the product of Kinetic is fixed by board of

director and further is followed by dealer. Price of the product

is differing according to location of leader.

3. FACTORS AFFECTING PRICING: -

There are various factors affecting price. The marketer

has to know the firms cost function and the influence ofexternal environment variable like competitors reaction and

government policy, besides knowing how demand varies

across different price levels.

Kinetic considers a number of factors while deciding

upon the price. The factors include:

a) Price of competitorsb) Production cost

c) Govt. excise

d) Customers demand

These four factors play an important role in deciding

pricing. Cost is the most important factor to be taken into

consideration while setting the price of the base of deciding

the pricing. The next important factor is the govt. taxes. If thegovt. taxes are to be paid more, then the prices of the product

will also increasing accordingly. While customers demand

and firms cost function serve to provide the boundaries of

price decision, environmental forces tend to have an upward

or downward involving effect of the price.

4. PRICE LIST

27


28/58

Price list proved very helpful to dealers, retailers &

consumers. They become aware of the maximum price limit.

The companies have to orient & circulate price list

periodically among the dealers. The price list of every

company is reprinted from time to time depending on thechanges like technology, tax; rebates etc. price list forms an

internal part of the teamwork of the company. It is a

statement, which shows the future, profits indirectly.

Kinetic prepares price list at the time of budget every

year. If there are any changes taking place in the price then

price list is reprinted & circulated.

5. DISCOUNT AND ALLOWANCES

Discount and allowances are price concession offered

to traders or buyers in the form of deduction from the price list

or from the amount of bills or invoices. Many companies are

also ready to grant discounts, allowances & special terms to

their dealers and customers that they may feel to realize how

title profit may be made. Company should measure the cost ofgranting each discount or allowances against its impact on

marketing the sale. They should than establish better polices

as to what should be granted to customer in bidding for their

business. There are various types of discounts & allowances

like cash discount, functional discount, seasonal discount,

quality discount, advertisement allowances, window display

amt, trade in allowance etc.

Kinetic provide various types of discount to the

customers. They provide discount to the dealers according to

lot they order to the company. Dealers also provide discount

to the customers at cash purchase, at special occasion like

Diwali, Janmasthmi, and Dasera.

6. CREDIT TERMS: -

28


29/58

It refers to the rules & regulations in the form of an

agreement between the producer and dealers or producers and

consumers in relation to credit facilities available from the

company. Depending on the policy of the management of the

company, credit terms may remain the same or different fromconsumer to consume. Credit terms change over a period of

time. In todays market it is a fact that each company has to

give a short or long-term credit. Then only it can expand &

sustain its market in cutthroat competition.

Kinetic gives cash & credit facilities to its customers.

Kinetic provide installment facilities to the customers. It gives

installment facilities through following banks. City Finance

ICICI Bank

Centurian Bank

Mahindra & Mahindra

7. PRICE SENSITIVITY: -

This is one of the customers behaviors that comfort the

marketer. Price sensitivity is the change in behavior of

customer due to price change. The marketer has to perform

the task of knowing the customers who are highly price

sensitivity.

In this company price sensitivity is less because of

diversified products. Price sensitivity is low if the buyer hasdifficulty comparing two alternative buyers are less price

sensitive where the expenditure on the product is how

compared to the total cost of the end products.

8. GOVERNMENT POLICY: -

The governments fiscal policy also contributes towards

the pricing decision. Here the company has to consider taxes,

customs and excise duties on the product of the firm. If thegovernment increases the taxes and excise duties, the price of

29


30/58

the product also increases. Even if the firm wants to reduce

the end price to the customer to generate demand, it may not

be able to do so mainly because of the government policy.

Thus, price mix receives more attention of the manager

because it is much more important in marketing mix.

Therefore the decision relating to prices usually appears at the

center stage. Price is such a tool, which can attract more

customers. It is reasonable with best quality. Price mix plays a

critical role in the operation and the management of the

business unit.

9. PRICING METHOD: -Cost demand and competition underline the different

pricing methods that a firm may accept.

Kinetic adopt the demand oriented pricing method. In

the long run the best pricing policy in a competitive market is

the market-based method of pricing. It is safer to follow the

process of import competitors who dominates the market such

a price policy will prevent price war and assure normal profit.

10. TYPES OF PRICING: -

Companies usually dont set a single price for the

product or service, but refers variation in geographically,

purchase timing, purchase frequency etc. There are different

types of pricing, which are as under: -

1) Discretionary or differentiated pricing2) Discounted pricing

3) Promotional pricing

4) Product line pricing

30


31/58

CONTENT

1. Introduction

2. Distribution Channel3. Importance Of Distribution Channel

4. Distribution Channel Of Kinetic

5. Physical Distribution

6. Importance Of Physical Distribution

31


32/58

Introduction

Place mix is also known as Distribution Mix. This stands

for the various activities the company undertakes to make the

producer easily available to the customer. In todays economythe producers, customer are separated by vast distances. Place

mix is nothing but marketing activities in which movements

or flows of goods or services are there from primary producer

to ultimate consumer. Following are the major topics to be

studied.

Distribution channel

Physical Distribution

In todays economy there are many kinds of middlemen

like wholesaler, retailer, dealer, facilitators, agents, brokers,

sales force etc. Thus channel members right from the

producer up to the customer are interrelated and thus it

becomes a total distribution system. Channel should be

managed efficiently & effectively.

Physical distribution looks after physical handling of the

goods assuring maximum customers service. It aims at

providing delivery of right goods at the right time and at the

right place to the right consumers. These activities cover order

processing, handling of goods, packaging, warehousing,

transportation, inventory control & customer service. Old

middlemen performs these functions and they assure putting

the product within an arms length of customers desire &

demand.

32


33/58

Distribution Channel

When production process is being completed andproduct is ready to consume, the next problem faced by the

producer is to sell the goods to targeted consumers. There are

always links between producers and consumers. The way

through which the goods fallow from producers to consumers

is called channel of distribution. Marketing channels are sets

of interdependent organization involve in the process of

making product or service available for use of consumption.

Marketing channel decision is among the most critical

decision. Once a firm chooses a marketing channel, it must be

usefully remain for a substantial period. Most producers sell

their goods through wholesalers, retailers or agents, which

forms a part of a marketing channel. They must choose the

cheapest channel because it is very risky.

33


34/58

Importance Of Distribution Channel

Many time questions arise that why would a producer

delegate some of the selling job to the intermediaries? Thedelegation means relinquishing some control over how and to

whom the products are sold. The producers appear to be

placing the firms dissolving in the hands of intermediaries.

But producers do get several advantages by intermediaries.

Kinetic uses intermediaries to increase their efficiency in

the marketing goods widely available & accessible to target

market through their contacts, experience, specification & saleof operation. Intermediaries usually offer the firm more than

what it can achieve on its own.

Making the product available to the customer is the most

convenience way in a function which only a middleman can

perform. Imagine a situation where no middlemen exist, the

cost of obtaining the product will be very high. Further, there

is also inconvenience which will have to go through justobtain our requirement directly from a manufacturer.

34


35/58

Distribution Channel Of Kinetic

Consumer

35

Company

C & F Agent

Dealer


36/58

Physical Distribution

The marketing process is not complete simply by

creating super product and by creating a customer by

aggressive salesmanship. Delivering the product to the

consumers at the right time and at the right place is an equally

important function of marketing this vital function is called

physical distribution. In simple language physical distribution

means the process of delivering the product to the user or

consumers. Promptly, safely and in time. Physical

distribution involves management of flows of raw materials

and finished products from the point of origin to the point ofconsumption to meet the consumers need at profit.

The major components of physical distribution are.

Order processing

Warehousing

Inventory management Transportation

A. Order processing

Order processing is considered as the key to customer

service and satisfaction. Order processing includes receiving,

recording, filling and assembling of products for dispatch. The

amount of time required for the date of receipt of an order upto the date of dispatch of goods is reasonable and ad short as

possible. The company is now using a computer system to

speed up order handling. Measures are taken to ensure proper

execution of orders.

B. Warehousing

The word storage means holding the stock of goods forrelatively longer period as the goods are not immediately in

36


37/58

demand. Warehousing involves more than storage.

Warehousing perform many of the usual function of

wholesalers, e.g. breaking bulk, dispatch of smaller

consignment to retailers, holding the stock of retailers,

equality the goods flow to retailers, proving marketintelligence and many other more changing service of

manufacturer. A full service warehousing is called a

distribution center. Warehousing is fixed facilities where

companies store their inventories usually for longer period.

C. Inventory management

Marketing mgt. is directly interested in effective

management and control of inventory, as inventory

management is a powerful tool in the process of creation and

satisfaction of customer demand. Inventories are reservation

of goods held in anticipation of sales. Inventories are the link;

inter connecting the customers order and companys

production activity. In fact the entire physical distribution m.

rotates around the inventory management.

Inventory mgt. is the heart of the game of physical

distribution.

D. Transportation

It is one of the important tools of the distribution

system. To send the product at the right place, at right timeand at the right price. The marketers should be aware of their

companys transport decision. At the time of taking decisions

about it critical such as speed, frequency, tractability & cist

should be considered. Thus, transport is crux of the problems

of physical distribution. In Kinetic trucks, train is used to

transport in India, and ship is used to export abroad.

37


38/58

Importance Of Physical Distribution

Physical distribution management has assumed great

importance as it alone can reduce the cost of transport,

storage, material handling and order processing and holding of

inventories. These are the basic building blocks or planned

physical distribution because it can assure a competitive level

of increasing demand while holding down the total cost of

distribution as much as possible. The total cost approach, the

idea of cost trade offers the system approach and avoidance of

sub optimization of costs are principal supporting concepts of

the modern physical distribution system.

38


39/58

CONTENT

1. Introduction

2. Advertisement

3. Objective Of Advertising

4. Advertising Media

5. Adverting Media Used By Kinetic

6. Advertisement Budget7. Sales Promotion

8. Sales Promotion By Kinetic

9. Sales Force

10. Public Relation

11. Directing Marketing

39


40/58

Introduction

Promotion compasses all the tools in the marketing

mix whose major role is persuasive communication.- Philip Kotler

Promotion has three specific purposes. It

communicates marketing information to consumers, users

and reseller. It is not enough to communicate ideas.

Promotion persuades and convinces the buyer and

influences his/her behavior to take the desired action.

Promotional efforts act as powerful tools of competition providing the cutting edge of its entire marketing

programme.

Broadly speaking promotion means to push

forward or to advance an idea in such a way as gain as its

acceptance and approve. Promotion is any communicative,

activity whose main objective is to move forward aproduct, service or idea in any channel of distribution. It is

an effort by a marketer to inform and pursue buyers to

accept, recommended or use the article, service or

communication with an additional element of persuasion.

The promotional activity always attempts to affect ideas,

products services etc. is the heart of promotion.

Modern marketing causes for more thandeveloping a good product prcing attractively and making

it a accusable to target customers company must also

communicate with their present and potential customers.

40


41/58

The promotion mix includes five totals they are: -

1. Advertisement

2. Sales promotion3. Sales force

4. Public relation

5. Direct marketing

All these tools have one dimension in common i.e. they

are all communication a message to customer Buy Me.

Promotion is the process of marketing communication to

inform, persue, remind & influence consumers or users infavour of the product or service. It is said that in a competitive

market, without promotion nothing can be sold.

In essence, promotion is the spark plug of our marketing

strategy. It is not enough to communicate ideas. Promotion

persuades and convincing the buyer & influences his/her

behavior to take desired action. Promotional efforts act as

powerful tool of competition providing the cutting edge of itsentire marketing program.

41


42/58

Advertisement

Advertising is one of the very important tools. It is

nothing but a paid form of non-personal presentation or

promotion of ideas or goods or services by an identify

sponsor. It communicates about the product and the

services provided to the customer and also about the firm,

which manufactures the product. Advertisement has well

defined differently by different experts. Few of them are

follows.

Advertising is a paid form of non-personal

presentation of ideas, goods, and services bymanufacturer or any of the channel members.

- Richard Buskee.

The above definition clearly reveals the nature of

advertisement. In other terms advertise means spreading of

informations. Three points can be made easy to remember

what advertisement is.

1. Paid form

2. Non personal presentation of goods, ideas, & services

3. Having an identify sponsor.

In India, advertising is a recognize mean of sales

promotion but it was accepted very latterly in Indian

business world. The delay was obvious because of late

industrialization in the country. But today India has alsoemerged into an industrial country, which is quite evident

from the nature.

42


43/58

Objectives Of Advertisement

1. PREPARING A GROUND FOR NEW PRODUCT

Advertisement may be used to introduce a new product

in the market. The new product needs introduction to the mass

in the initial stage. So advertisement creates awareness about

the new product among the customers.

2. CREATION OF DEMAND

Another main objective of advertisement is to create afavorable climate for maintaining or improving sales mainly

in the growth and maturity stage of product life cycle.

Customers are to be commonly remained about the product

and the brand name.

3. FACING THE COMPITITION

Another objective of the advertisement is to face thecompetition. In other words advertising in modern days has

undertaken not only to remain but also to maintain the

position of product and brand in the competitive market.

Advertisement helps to build up the brand image and brand

loyalty among customers.

4. TO INFORM CONSUMERS ABOUT THE

CHANGES

The advertisements are mainly made for informing the

customers. A part from a new product and remaining of old

product, advertisement also gives The information about the

changes made in the old product. Such changes may be price,

size, quality, weight, packing, special offers etc.

43


44/58

5. BARRING NEW ENTRANCES

From the advertisement point of view a strong image

through long advertising helps to keep new entrances away

from the market. They believe that advertisement built up a

certain monopoly for the product, which becomes barrier for

the competitors mew products.

6. SUPPORT SALESMANS EFFORTS

Sales man deals directly with customers and advertising

renders great help me to them. When customers come to know

of the characteristic, quality, uses and various brands of a

product through advertisement, they ask for it from the

salesman, without much inquiry about it. To that extent, much

time & energy of the salesman arte saved, advertising helps

salesman in securing increase in sales buy acquainting more

people in a short length of time with the merits of a product.

7. MAINTAIN DEMAND

The objects of advertising are not only to create demand

for a product, but also to maintain it at the current level. If

efforts are not made to maintain it, it is possible that it will

decline in face of competition from the rivals. It is for this

reason that established companies continue advertising their

product in spite of very high level of their demand.

8. TO ENHANCE PRESTIGE

One of the objects of advertising is to enhance prestige

of the product, its manufacturers and dealer as well. The fact

is that repeated advertisements succeed in strengthening

customers confidence in products. For instance, constant

advertising of products likes Luna, Nova 135, Zing, Velocity,

Boss, Aquila, Comet etc., add to their credibility and raise the

prestige of their manufactures.

44


45/58

9 ESTABLISH CORDIAL RELATIONS BETWEEN

BUYERS AND RETAILERS

Generally, manufacturers give information in theiradvertisements about the names and addresses of local dealers

who stock and sell their products. When customers impressed

by advertisements, contact these dealers with a desire to

purchase the advertisements, products, they hardly ask for

further details about these products. Such positive attitude on

the side of both the parties establishes and develops a friendly

relation between them.

45


46/58

Advertising Media

Advertising is said to be a system of information and the

various means through which information is passed on form

producer to consumers are termed as advertising media. In a

competitive market, a producer or manufacturer of goods and

services has to inform the consumers and persuade them to

buy his products. To serve this purpose, the service of outside

agencies is called for. Obviously advertising is a tripartite

relationship between the producers, consumers and the

advertising agencies.

The most brilliant and original advertising ideas will be

wasted if they are not presented through the right media. It is

important for achieving the objectives of marketing. An

advertising media is means or vehicle of delivering a

definite message. It is a means through which an advertising

message or information is passed on to the prospective

customers, readers, viewers, listeners, or passerby. Example of

media is newspapers, magazines, radio, television, directmails, posters, films, catalogues etc.

There are different advertising media. They can be

classified into indoor, outdoor, postal, display and special

media. Each division has sub divisions, which are shown, in

the next page.

46


47/58

Advertising Medias Used By Kinetic

A. PRESS MEDIA

Newspaper

Books

Magazine

B. EXTERNAL MEDIA

Posters

Wall writing & painting Vehicle cards

Kiosk

Land writing

Models & Sign Boards

Advertising Vehicles

C. DIRECT MEDIA

Letters

Circulars

Vouchers & letter pads

Folders

Catalogues

Models, gifts, & samples

Dealers aid

D. AUDIO VISUAL MEDIA

Radio

Television

Exhibition

Trade fair

Show room

47


48/58

Internet

Mobile

Advertisement Budget

After determine objectives, the company can proceed to

establish its advertising budget for each product. The

company has to spend the necessary amount required to

achieve the sales goal. But how does a company know if it is

spending the right amount? If the company spends,

-Too little: then the effect will be that the sales of thecompany will decrease.

-Too much: then the effect will that company has scare

of finance that sum of money could have been put to

better use.

An advertisement budget or appropriation is referred to

as an organized plan made out for expenditure of money an

advertisement.

A planned cost analysis of different media of

advertisement and its effectiveness should be considered

while preparing the advertisement budget.

METHODS

The following method s are commonly used in

determining the size of the advertising budget :

Availability of Funds / Affordable method

Percentage of sales method

Return on Investment method Competitive party method

Objective and task method

Market share approach

48


49/58

From the above all these, the Kinetic use Availability of

Funds / Affordable method for advertising budget. Lets go

through the more information that How and Why companies

use this method and Who it will be decided.

Sales Promotion

The fast growing Indian market, increasing competition

in market, the maturing and the standardization of product

puts a pressure on the marketer to be innovative in his

strategy. In this situation sales promotion helps to motivate the

consumers and indirectly increase the sales.

Sales promotion is an important instrument in marketing

to lubricate the marketing efforts. It is referred to promotional

activities other than personal selling, advertising and

publicity, which stimulate the consumer purchasing & dealer

effectiveness. It includes display, exhibition and showroom

demonstration, free samples, coupons, premiums, contests and

various other non-recurring selling efforts. It is a plus

ingredient in the marketing mix; where as advertisement and personal selling are essential and basic ingredients in the

marketing mix. It acts as a connecting link covering the gap

between advertising and personal selling. It is not merely a

luxury or a fashion. It has been came a necessity.

Usually, sales promotion programmed are primarily

short term in nature and designed to quickly stimulate sales. It

provides incentives to buy.

49


50/58

Sales Promotion By Kinetic

Kinetic uses many ways and techniques of promoting

sales. It has different activities for different class of

distributors following are the promotional activities carried

out by Kinetic.

1. Sales Promotion for customers:

Seasonal discount

Off-season discount

Festival discount

Gift Articles

2. Sales Promotion for retailers and dealers:

Distributors of Kinetic are also resorted for

helping in sales promotion they are rewarded in

monetary terms. The promotional activities for

dealers are as follows:

Buying allowances or quantity discount Advertising allowances, 50% of

expenses on newspaper advertisement, leaflet

Trade discount and other special discount

Sales Scheme and sales contents.

Trade show participation allowances,

80% of trade show expenses done by dealers.

50


51/58

Sales Force

Sales force includes salesmen, sales executive, sales

officers or sale supervisors today; many companies develop

sales forces for better promotion of sale. Sale force is helpful

in the promotion of sales. And to link the customers and

producers it has favor of companys product, which gives it

enough remuneration.

As far as Kinetic is concerned it has many direct sales

forces. However, its distributors have appointed sales

executives which they work for the company. Firm is very

conscious about personal selling, and Kinetic tries to increase

sales by personal selling. Currently company has following

portion of sales by different sales force.

50% of sales through counter

30% of sales through sub dealers and brokers

10% of sales through institution

10% of sales through personal selling

Company is trying to achieve 40% of sale through

personal selling.

51


52/58

Public Relation

Public relation is believed indirect marketing tool that

means smooth public relation can create a good image in the

market. Here public relation means not only relation with

customers, suppliers, shareholders, dealers but relation with

employee legislation, community leaders, should be

maintained the public relation department perform the

function like press relations. Product publicity corporate

communication counseling etc. it can be helpful in launching a

new developing the firms reputation.

Kinetic is cognizant about the public relation, it maintain

relation through different activity like

Sonia Gandhi

delivers modifiedNovas

Sonia Gandhi

delivers modified

Zoom tohandicapped

people via Rajiv

Gandhi

foundation

52


53/58

Direct Marketing

Direct marketing is an interactive system of marketing,which uses one or more advertising media like direct mail,

catalog, telemarketing electronic shopping etc. it has been

growing at more rates because it is very useful than store

marketing it is used by any organization. It has advantage of

selectivity personalization, continuity, better timing high

leadership and privacy.

Kinetic use mobile and e mail as a direct marketing tool.Through this media Kinetic give direct advertisement to the

prospective customers.

Thus, promotion mix includes advertising, sales

promotional. Public relations, sales force and direct marketing

ahs some benefits and some drawbacks. However, they all are

used in marketing a proper use of promotional tools can lead

the company on the steps of success.

53


54/58

Conclusion Of Marketing Mix

At the end of marketing mix I would like to say that 4

Ps of marketing are very effective and covers the whole

marketing functions. It can be useful to producer to affect the

mentality of buyers. And buyers can also be aware of every

product in the market. 4 Ps can be matched with 4 c that

means product is for customers needs and wants price

represents the cost price is for convenience and promotion is a

communication.

The mix of 4 Ps can only fulfill the marketing plans a

good mix is helpful in obtaining top position each has its own

functions to perform and marketing mix is uncompleted

without any of them thus, marketing mix is a very useful and

important tool to stand in competition.

54


55/58

SWOT Analysis

The SWOT analysis calls for Strength, Weakness,

Opportunities, and Threats in relation to a business.

STRENGTHS

Brand & Image in the Indian Market

Strong product line with a variety of products.

Good customer relation

WEAKNESS

As compare to other competitive automobile

industry due to less advertisement Kinetic has less market

share. But today it is being changing.

OPPORTUNITIES

To cover more market share with the help of the

present product line by increasing advertising.

THREATS

Surrounding environment like competitors,

government laws etc.

Technological advances in the field. Threats of substitutes, like the introduction of

motorcycles running on batteries.

55


56/58

SuggestionOn the basis of comprehensive research of Kinetic,

under gone at Eagle Kinetic it can be concluded that the

position of the Kinetic in the corporate field is very strong.

The well experienced efficient and industrious sales force is

the strength of it. The value of the Kinetic is more than the

other vehicles manufactures.

From this report it is found that there are some areas

where they need improvements that are as follows:

1. The company spends less on promotionactivity and consumers are expecting more promotional

benefit so company need to offer more promotional

benefit to the consumer.

2. In spite of regular introduction of new

models by the company, consumers are still expecting

better bikes with better re-sale value and less

maintenance. So company should introduce new modelby considering this factor.

56


57/58

Conclusion

Viewing Kinetic from every angle, it can be conclude

that the entire unit is progressing well because Kinetic has

provided excellent quality of product due to sophisticated

technology and highly qualified technical & management

staff. By this way, they can able to create a good demand for

their product and satisfy the consumer.

In the report presented, an attempt has been made to

focus on the marketing mix side of Kinetic through Eagle

Kinetic at Rajkot. It was an excellent opportunity and I amglad that I was provided an opportunity to make a project

repot on such a famous company.

As far as advertisement is concerned, this companys

advertising department is effective and they spend lot of

money for the advertisement and attract the customer.

It can be said that credit of success of the company goes

to the management as well as workers and employee that

Kinetic has bring bright future.

In short, its grip on every aspect of the business is tight

which helps it in fight every uncertainty. It is continues to do

well, sure its future will be full of success.

57


58/58

BibliographyBooks:

Marketing Management - PHILIP KOTLER.

Marketing Management - S.A.SHARELEKAR.

Webssite:

www.kineticindia.com
http://www.kineticindia.com/http://www.kineticindia.com/

Date post:	07-Apr-2018
Category:	Documents
Upload:	prince-dudhatra
View:	216 times
Download:	0 times

Kinetic Group of Company

Documents