Rajaj Pvt. Ltd.

(Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

INTERNSHIP PROJECT REPORT

On

"A Study on Sales Promotion Strategy and its Impact on

Consumer Purchasing Decision"

Submitted By

Rohit Patel
MBA (3rd Semester)
Shri Ram Institute of Technology, Jabalpur

Under the Guidance of

Prof. Nishita Patel

Company: Rajaj Pvt. Ltd. (Hero Agency, Jabalpur)

Academic Year: 2024 – 2025

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

COMPANY CERTIFICATE

RAJAJ PVT. LTD.

(Authorized Hero Agency, Jabalpur)
Near Vijay Nagar, Jabalpur – 482002 (M.P.)

To Whomsoever It May Concern

This is to certify that Mr. Rohit Patel, a student of MBA (3rd Semester) at Shri Ram Institute of
Technology, Jabalpur, has successfully completed his internship at Rajaj Pvt. Ltd. (Hero Agency,
Jabalpur) from 1st June 2024 to 31st July 2024.

During the tenure of his internship, he worked sincerely and diligently on the project titled "A
Study on Sales Promotion Strategy and its Impact on Consumer Purchasing Decision." He was
engaged in activities related to customer interaction, field sales support, promotional campaign
monitoring, and data collection.

His conduct and performance during the internship period were found to be satisfactory and
commendable. We wish him success in his academic and professional career.

Authorised Signatory
Rajaj Pvt. Ltd. (Hero Agency)
Jabalpur, Madhya Pradesh

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

STUDENT DECLARATION

I, Rohit Patel, a student of MBA (3rd Semester) at Shri Ram Institute of Technology, Jabalpur,
hereby declare that the project report titled "A Study on Sales Promotion Strategy and its Impact
on Consumer Purchasing Decision" submitted for the partial fulfillment of the degree of Master of
Business Administration is my original work.

This report has been prepared based on my personal observations, primary data collected
through a structured questionnaire, and secondary data from credible sources during my
internship at Rajaj Pvt. Ltd. (Hero Agency, Jabalpur).

I further declare that this report has not been submitted to any other university or institution for
any degree or diploma. All data presented in this report is true to the best of my knowledge.
Proper references and citations have been provided wherever necessary.

Date: ______________

Place: Jabalpur

Rohit Patel
MBA (3rd Semester)
Shri Ram Institute of Technology, Jabalpur

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

ACKNOWLEDGEMENT

First and foremost, I bow my head in gratitude to the Almighty God for providing me with the
strength, wisdom, and perseverance to complete this project successfully.

I would like to express my heartfelt gratitude to my project guide, Prof. Nishita Patel, faculty at
Shri Ram Institute of Technology, Jabalpur, for her constant guidance, valuable suggestions, and
encouragement throughout the preparation of this project report. Her constructive feedback and
mentoring have been instrumental in shaping this work.

I am deeply thankful to the management of Rajaj Pvt. Ltd. (Hero Agency, Jabalpur), especially the
Sales Manager and the entire staff, for providing me with the opportunity to intern at their
esteemed organization. Their cooperation and willingness to share practical knowledge about the
automobile sales industry greatly enriched my learning experience.

I extend my sincere thanks to the Director and all the faculty members of Shri Ram Institute of
Technology, Jabalpur, for their academic support and encouragement.

I am also grateful to all the customers and respondents who willingly participated in the survey
and shared their genuine opinions, without which the primary data collection for this study would
not have been possible.

Finally, I would like to thank my family and friends for their unwavering support, patience, and
motivation throughout this journey.

Rohit Patel
MBA (3rd Semester)

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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EXECUTIVE SUMMARY

This internship project report presents a detailed study on the sales promotion strategies
employed by Rajaj Pvt. Ltd. (Hero Agency, Jabalpur), an authorized dealership of Hero MotoCorp
Ltd., and their impact on the purchasing decisions of consumers. The study was conducted over
a period of two months from June to July 2024 as part of the MBA internship requirement.

Sales promotion is one of the most dynamic and result-oriented tools of marketing
communication. In the highly competitive two-wheeler industry of India, sales promotion plays a
critical role in attracting, persuading, and retaining customers. Hero MotoCorp, being the world's
largest manufacturer of two-wheelers, relies significantly on effective promotional activities to
maintain its market dominance.

The primary objective of this study is to understand how various promotional tools such as
discount offers, cashback schemes, EMI facilities, exchange programs, free accessories, and
loyalty bonuses influence the consumer's decision to purchase a Hero two-wheeler from Rajaj
Pvt. Ltd.

A structured questionnaire was administered to 75 respondents comprising existing customers,

potential buyers, and walk-in visitors at the showroom. The data was analyzed using descriptive
statistics, frequency tables, and visual charts including bar charts and pie charts.

Key findings of the study reveal that discounts and price reductions are the most influential
promotional tool, followed by EMI facilities and exchange offers. More than 68% of respondents
stated that sales promotions significantly affected their decision to purchase or visit the
showroom. The study also highlights that younger consumers aged 18–30 are more responsive
to promotional campaigns shared through social media and digital platforms.

The report concludes with practical recommendations for Rajaj Pvt. Ltd. to enhance its
promotional strategy by adopting digital marketing, improving the EMI documentation process,
strengthening customer loyalty programs, and offering more customized promotional packages to
different customer segments.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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TABLE OF CONTENTS

Chapter /
Title Page No.
Section

— Cover Page 1

— Company Certificate 2

— Student Declaration 3

— Acknowledgement 4

— Executive Summary 5

— Table of Contents 6

Chapter 1 Introduction 7

1.1 Concept of Sales Promotion 7

1.2 Importance of Sales Promotion 8

1.3 Consumer Buying Behavior 9

1.4 Objectives of Study 10

1.5 Scope of Study 10

Chapter 2 Company Profile 11

2.1 Overview of Rajaj Pvt. Ltd. 11

2.2 About Hero Agency, Jabalpur 12

2.3 Products and Services 13

2.4 Organizational Structure 14

2.5 Market Position 14

Chapter 3 Literature Review 15

Chapter 4 Research Methodology 19

4.1 Research Design 19

4.2 Data Collection Methods 20

4.3 Sample Size and Sampling 20

4.4 Questionnaire 21

4.5 Limitations of Study 22

Chapter 5 Data Analysis & Interpretation 23

Chapter 6 Findings 36

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Chapter /
Title Page No.
Section

Chapter 7 Conclusion 38

Chapter 8 Suggestions & Recommendations 40

Chapter 9 Learning Experience 43

— Bibliography 45

— Appendix – Questionnaire 46

— Appendix – Sample Data Table 48

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CHAPTER 1: INTRODUCTION

1.1 Concept of Sales Promotion

Sales promotion refers to those marketing activities, other than personal selling, advertising, and
publicity, that stimulate consumer purchasing and dealer effectiveness. It is a direct inducement
that offers extra value or incentive for a product to the salesforce, distributors, or the ultimate
consumer, with the primary objective of creating an immediate sale. In simple terms, sales
promotion is any short-term incentive designed to stimulate faster or greater purchase of a
product or service by consumers or the trade.

Sales promotion is a part of the broader concept of integrated marketing communications (IMC).
While advertising creates a long-term image of a brand, sales promotion generates an immediate
response from the target audience. The tools of sales promotion are diverse and include
coupons, discounts, rebates, contests, free samples, loyalty programs, exchange offers, and
point-of-purchase displays.

In the Indian automobile sector, particularly in the two-wheeler market, sales promotion has
evolved as one of the most effective strategies to boost short-term sales volumes, clear existing
inventory, attract new customer segments, and retain existing buyers. Companies like Hero
MotoCorp, Honda, Bajaj, and TVS use aggressive promotional campaigns during festive seasons
like Diwali, Navratri, and Onam to maximize their sales.

Sales promotions can be broadly classified into three categories: (a) Consumer-oriented
promotions, which are aimed directly at the end users and include discounts, cashback offers,
free gifts, and loyalty points; (b) Trade-oriented promotions, which are designed for dealers,
distributors, and retailers to push the product through the distribution channel; and (c) Sales-force
promotions, which motivate the internal sales team through incentives, bonuses, and recognition
programs.

According to Philip Kotler, one of the world's foremost marketing authorities, sales promotion
consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker
or greater purchase of particular products or services by consumers or the trade. This definition
captures the essence of what sales promotion means in a practical business context.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
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1.2 Importance of Sales Promotion

Sales promotion is considered one of the most powerful short-term marketing tools available to
businesses. Its importance has grown tremendously in the last two decades, especially in
developing economies like India where price sensitivity is high among consumers and
competition among brands is intense. The following points highlight the key importance of sales
promotion in the modern business environment.

Firstly, sales promotions help businesses achieve their immediate sales targets. Dealerships like
Rajaj Pvt. Ltd. often face monthly or quarterly sales quotas set by Hero MotoCorp. Promotional
offers such as zero down payment or festival discounts help them meet these targets by
accelerating purchase decisions among consumers who might otherwise delay their buying.

Secondly, promotions play a vital role in introducing new models to the market. When Hero
MotoCorp launches a new motorcycle or scooter, dealerships offer introductory discounts or free
accessories to attract early buyers. This creates a buzz in the market and generates word-of-
mouth publicity, which is particularly effective in smaller cities like Jabalpur where community
networks are strong.

Thirdly, sales promotions help in managing the product lifecycle. When a model reaches the
decline stage, dealerships use heavy discounts and exchange offers to liquidate existing stock
before the newer variants arrive. This is a common practice observed at Hero showrooms across
India.

Fourthly, promotions enhance brand loyalty. Programs such as Hero's loyalty reward scheme,
extended warranty offers, and annual service packages encourage repeat purchases. A satisfied
customer who benefited from a past promotional offer is more likely to return to the same
dealership for their next purchase.

Finally, in the digital age, promotional campaigns create significant traction on social media
platforms. A well-publicized promotional offer on Instagram or Facebook can attract hundreds of
inquiries within hours, significantly increasing footfall at the showroom.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
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1.3 Consumer Buying Behavior

Consumer buying behavior refers to the actions and decision-making processes involved when
an individual or household purchases products or services for personal consumption.
Understanding consumer behavior is essential for marketers because it helps them design more
effective marketing strategies and promotional campaigns.

The consumer decision-making process typically involves five stages: Problem Recognition,
Information Search, Evaluation of Alternatives, Purchase Decision, and Post-Purchase Behavior.
In the context of two-wheeler purchases, a consumer may recognize the need for personal
transportation, search for information about various brands and models, evaluate Hero bikes
against competitors like Bajaj or Honda, and ultimately make a purchase decision influenced by
various factors including price, brand reputation, fuel efficiency, and available promotions.

Several internal and external factors influence consumer buying behavior. Internal factors include
personal income, attitude toward brands, lifestyle preferences, and risk perception. External
factors include peer influence, advertising, sales promotions, availability of financing, and after-
sales service quality. In Tier-2 cities like Jabalpur, factors such as easy EMI availability, trust in
local dealerships, and word-of-mouth recommendations play a disproportionately large role in
shaping purchase decisions.

Sales promotions specifically target the evaluation and purchase stages of the decision-making
process. A well-timed discount or a compelling exchange offer can tip the balance in favor of
purchase, particularly for customers who are undecided or comparing options. The psychological
principle of scarcity (limited-period offers) and social proof (many customers availing the offer) are
commonly used to nudge consumers toward faster decisions.

1.4 Objectives of Study

The objectives of this study are clearly defined to ensure a focused and purposeful research
approach. The study aims to:
1. To understand the various types of sales promotion strategies used by Rajaj Pvt. Ltd.
(Hero Agency, Jabalpur).
2. To analyze the impact of sales promotion tools on consumer purchasing decisions.
3. To identify which promotional tool (discount, EMI, exchange offer, cashback, free
accessories) is most influential in motivating consumer purchases.

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4. To study the demographic profile of customers visiting the Hero showroom and
understand their responsiveness to promotions.
5. To suggest practical improvements to the existing sales promotion strategies for better
customer acquisition and retention.

1.5 Scope of Study

The scope of this study is primarily confined to the operations and customer base of Rajaj Pvt.
Ltd. (Hero Agency, Jabalpur). The study covers the analysis of sales promotion strategies
implemented during the internship period of June–July 2024 and evaluates their effectiveness
based on customer feedback collected through a structured survey.

Geographically, the study focuses on the urban and semi-urban consumer population of Jabalpur
city in Madhya Pradesh. The respondents include individuals who visited the Hero showroom
during the study period, existing customers, and prospective buyers who were identified through
telephonic outreach. The study covers two-wheeler products including motorcycles and scooters
offered under the Hero MotoCorp brand.

The study does not cover competitive brands or multi-brand dealerships. It is limited to one
dealership and one brand, which may limit the generalizability of findings to a broader population.
The time frame of data collection is limited to two months, which means seasonal variations over
a full year are not captured.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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CHAPTER 2: COMPANY PROFILE

2.1 Overview of Rajaj Pvt. Ltd.

Rajaj Pvt. Ltd. is a professionally managed automobile dealership company operating as an
authorized dealer of Hero MotoCorp Ltd. in the Jabalpur district of Madhya Pradesh. The
company was established with a vision to provide world-class two-wheeler products and services
to the people of Jabalpur and the surrounding regions. Over the years, Rajaj Pvt. Ltd. has grown
from a small dealership into one of the most respected and trusted Hero agencies in the
Mahakoshal region of Madhya Pradesh.

The company operates under the guidelines and standards set by Hero MotoCorp Ltd., India's
largest manufacturer of two-wheelers. Rajaj Pvt. Ltd. is committed to delivering an exceptional
customer experience right from the moment a customer steps into the showroom until the after-
sales service phase. The dealership follows all Hero MotoCorp quality benchmarks in terms of
sales processes, service operations, spare parts management, and customer relationship
management.

The company has a strong team of sales executives, service technicians, and customer
relationship officers who are regularly trained by Hero MotoCorp to stay updated with the latest
products, technologies, and customer service practices. Rajaj Pvt. Ltd. has consistently been
recognized among the top-performing Hero dealers in Madhya Pradesh for its sales volumes and
customer satisfaction scores.

2.2 About Hero Agency, Jabalpur

The Hero Agency operated by Rajaj Pvt. Ltd. is strategically located near Vijay Nagar in Jabalpur,
one of the most commercially active areas of the city. The showroom is spacious, well-lit, and
designed according to Hero MotoCorp's standardized dealership layout, which features dedicated
zones for product display, test rides, customer lounge, finance desk, and accessories section.

Jabalpur is the third largest city in Madhya Pradesh and serves as the divisional headquarters of
Jabalpur Division. The city has a population of over 1.3 million and serves as a major commercial

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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and industrial hub for the surrounding districts. Given the high demand for personal transportation
in Tier-2 cities, the two-wheeler market in Jabalpur is extremely vibrant and competitive.

The Hero Agency in Jabalpur serves not just the urban population but also buyers from rural and
semi-urban areas such as Katni, Narsinghpur, Mandla, and Seoni who frequently visit Jabalpur
for commerce and services. This wide catchment area makes the dealership one of the busiest
Hero outlets in the region.

Particulars Details

Company Name Rajaj Pvt. Ltd.

Brand Represented Hero MotoCorp Ltd.

Category Authorized Two-Wheeler Dealership

Location Near Vijay Nagar, Jabalpur – 482002, M.P.

Services Offered Sales, Service, Spare Parts, Finance

Year Established 2008 (Approx.)

No. of Employees Approx. 35–40

Target Market Urban, Semi-urban, and Rural customers of Jabalpur division

2.3 Products and Services

Rajaj Pvt. Ltd. stocks and sells the complete range of Hero MotoCorp's two-wheelers available in
India. The product portfolio can be broadly divided into motorcycles and scooters, catering to a
wide variety of customer segments including students, working professionals, homemakers, and
rural farmers.

The dealership's key product offerings at the time of this study included the following models. In
the commuter motorcycle segment, the Hero Splendor Plus and Splendor+ i3S are the best-
selling models, known for their exceptional fuel efficiency and reliability. The Hero HF Deluxe
serves the entry-level budget segment, while the Hero Glamour targets young working
professionals who desire a stylish yet practical daily commuter. In the premium motorcycle
segment, the Hero Xtreme 160R and Xtreme 200S cater to performance-oriented younger buyers
who want sporty aesthetics with modern features.

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In the scooter segment, the Hero Maestro Edge 125 and Hero Destini 125 are popular among
both male and female customers who prefer the comfort and convenience of automatic
transmission. Hero's Xoom scooter targets the college-going youth segment with its aggressive
styling and feature-rich profile.

Beyond vehicle sales, Rajaj Pvt. Ltd. also provides a comprehensive range of after-sales services
including periodic maintenance services, engine overhaul, bodywork repairs, and warranty-
related repairs. The dealership maintains a well-stocked spare parts store to ensure minimal
waiting time for customers requiring parts replacement. The dealership also partners with leading
financial institutions including HDFC Bank, Bajaj Finance, and Hero FinCorp to offer easy
financing options to customers.

2.4 Organizational Structure

The organizational structure of Rajaj Pvt. Ltd. is hierarchical and functional in nature. The
Managing Director holds the apex position and is responsible for overall business strategy and
performance. Below the MD, the organization is divided into Sales, Service, Finance, and
Customer Relationship functions, each headed by a department manager.

Position Role

Overall business strategy, financial oversight, dealer-OEM

Managing Director
relations

Sales team supervision, target achievement, promotion

Sales Manager
planning
Service Manager Workshop operations, technician management, quality control

Finance & Insurance Manager Loan processing, insurance tie-ups, EMI documentation

CRM Executive Customer feedback, complaint handling, loyalty programs

Sales Executives (8–10) Floor sales, customer counselling, test ride management

Service Technicians (6–8) Vehicle servicing, repair, PDI (Pre-Delivery Inspection)

Accounts & Admin Staff Billing, inventory management, GST compliance

2.5 Market Position

Hero MotoCorp is the world's largest manufacturer of two-wheelers by volume and holds the
dominant market position in the Indian two-wheeler industry. With a market share consistently

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
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of Technology

above 35% in the domestic two-wheeler segment, Hero outperforms competitors like Honda
Motorcycle, Bajaj Auto, and TVS Motor Company.

In Jabalpur, Hero MotoCorp commands a significant share of the two-wheeler market, particularly
in the commuter motorcycle segment which accounts for the largest portion of sales. Rajaj Pvt.
Ltd. competes with other Hero dealerships in Jabalpur as well as competing brands' dealerships.
The agency distinguishes itself through aggressive promotional campaigns, a strong after-sales
service reputation, and excellent customer relationship management.

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Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

CHAPTER 3: LITERATURE REVIEW

The literature review for this study draws on published research, academic journals, marketing
textbooks, and industry reports related to sales promotion strategies and their influence on
consumer behavior in the automobile sector, with particular reference to the Indian two-wheeler
market.

3.1 Sales Promotion: Theoretical Foundations

Philip Kotler and Kevin Lane Keller, in their seminal textbook Marketing Management (14th
Edition), define sales promotion as a key ingredient in marketing campaigns that consists of a
collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase
of products or services by consumers or the trade. They categorize sales promotion tools into
consumer promotions (samples, coupons, rebates), trade promotions (price-off deals,
allowances), and business promotions (conventions, specialty advertising).

Belch and Belch (2015) in their book Advertising and Promotion: An Integrated Marketing
Communications Perspective emphasize that the main advantage of sales promotion over
advertising is its ability to generate an immediate behavioral response. While advertising builds
brand awareness and preference over time, a coupon or a discount deal can trigger an immediate
purchase within hours of being communicated to the consumer.

Blattberg and Neslin (1990) in their foundational work Sales Promotion: Concepts, Methods, and
Strategies provide a comprehensive analytical framework for understanding sales promotions.
They distinguish between three main effects of promotions: the acceleration effect (consumers
buy sooner than they would have), the stockpiling effect (consumers buy more than they need),
and the switching effect (consumers switch from a competing brand to take advantage of the
offer).

3.2 Consumer Behavior and Sales Promotions

Chandon, Wansink, and Laurent (2000) conducted an influential study titled A Benefit
Congruency Framework of Sales Promotion Effectiveness, published in the Journal of Marketing.
Their study found that different types of promotions provide different types of benefits to

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consumers. Monetary promotions (discounts, coupons) primarily provide utilitarian benefits such
as savings and quality, while non-monetary promotions (free gifts, contests) primarily provide
hedonic benefits such as entertainment and self-expression. Their framework suggests that
matching the type of promotion to the type of product and consumer motivation leads to higher
effectiveness.

Mela, Gupta, and Lehmann (1997) in their study The Long-Term Impact of Promotion and
Advertising on Consumer Brand Choice, published in the Journal of Marketing Research, found
that consumers who are repeatedly exposed to price promotions become more price sensitive
over time. This has important implications for automobile dealerships that rely too heavily on
discounting, as it may erode brand equity and reduce consumers' willingness to pay the full price
in the future.

Srinivasan and Anderson (1998) conducted a study on the effectiveness of sales promotions in
the automobile industry and found that promotional pricing was the most effective tool for
generating showroom visits and test drives. They also found that non-price promotions such as
extended warranties and free service packages were more effective in converting fence-sitters
into actual buyers because they added perceived value without reducing the brand's prestige.

3.3 Sales Promotion in the Indian Context

Beri (2018) in his book Marketing Research notes that Indian consumers are highly price-
sensitive, especially in Tier-2 and Tier-3 cities, and respond more strongly to promotional
incentives than consumers in developed markets. He attributes this to lower disposable incomes,
a culture of bargaining and deal-seeking, and greater reliance on social proof in purchase
decisions. For the two-wheeler market, this means that promotional tools like EMI offers,
exchange schemes, and festival discounts are extremely powerful drivers of purchase behavior.

Kumar and Srivastava (2013) in a research paper titled Impact of Sales Promotion on Consumer
Buying Behavior: A Study in the Context of Automobile Industry in India found that discounts, free
accessories, and extended warranty offers were the top three promotional tools that positively
influenced buyer decisions for two-wheelers. The study surveyed 200 respondents across three
cities and found that over 72% of buyers admitted that some form of sales promotion played a
role in their decision to buy.

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Sharma and Kaur (2016) studied sales promotion strategies of leading two-wheeler brands in
India and concluded that Hero MotoCorp's promotional strategy is more effective than that of its
competitors due to its wide distribution network, strong dealer relationships, and ability to offer
localized promotions tailored to regional consumer preferences. The study also noted that Hero's
aggressive use of festive season promotions, combined with celebrity endorsements, gives it a
significant competitive edge.

3.4 Digital Promotions and Modern Consumer Behavior

With the rapid adoption of smartphones and social media in India, the dynamics of sales
promotion have undergone a significant transformation. Gupta (2020) in her study Digital
Marketing and its Impact on Consumer Behavior in the Two-Wheeler Industry notes that digital
promotions through platforms such as WhatsApp, Facebook, and Instagram have become
increasingly effective in reaching younger consumers aged 18–30 who rely on peer
recommendations and influencer content to make purchase decisions.

Mishra and Tripathi (2021) found in their research that EMI availability through digital lending
platforms such as Hero FinCorp's mobile app has reduced the perceived financial barrier for first-
time buyers, particularly those in the 22–28 age group who may not have a significant credit
history. This has effectively expanded the addressable market for dealerships like Rajaj Pvt. Ltd.
in cities like Jabalpur.

3.5 Research Gap

While substantial research exists on sales promotion in the FMCG and retail sectors, there is a
relative scarcity of localized, dealership-specific studies on the effectiveness of promotional
strategies in the two-wheeler segment of smaller Indian cities. Most existing studies have been
conducted in metropolitan areas such as Delhi, Mumbai, and Bengaluru, which have different
consumer profiles and competitive landscapes compared to Tier-2 cities like Jabalpur.

This study attempts to fill that gap by focusing specifically on the operational context of Rajaj Pvt.
Ltd. in Jabalpur, using primary data collected directly from customers who interacted with the
dealership's promotional activities. The findings are expected to offer actionable insights relevant
to similar dealerships in smaller Indian cities.

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Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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CHAPTER 4: RESEARCH METHODOLOGY

4.1 Research Design

The research design adopted for this study is descriptive in nature. A descriptive research design
is used when the researcher seeks to describe the characteristics of a phenomenon or situation
without manipulating variables. In this case, the study describes the sales promotion strategies of
Rajaj Pvt. Ltd. and their perceived impact on consumer purchasing decisions, without introducing
any experimental interventions.

The study uses a quantitative approach as its primary methodology, supplemented by qualitative
observations made during the internship period. The quantitative approach involves the collection
of structured data through a survey questionnaire, which is then analyzed using descriptive
statistics including frequency distributions, percentages, and cross-tabulations.

The research approach is cross-sectional, meaning data was collected at a single point in time
rather than over an extended longitudinal period. While this limits the ability to capture behavioral
changes over time, it is appropriate for the scope and duration of this internship project.

4.2 Data Collection Methods

Data for this study was collected from both primary and secondary sources.

Primary Data
Primary data was collected directly from respondents through a structured questionnaire. The
questionnaire was administered in person at the Hero showroom of Rajaj Pvt. Ltd. during June–
July 2024. Some questionnaires were also distributed through WhatsApp and Google Forms to
existing customers of the dealership. The questionnaire consisted of 15 questions covering
demographic information, awareness of promotional offers, influence of various promotions, and
satisfaction with the buying experience.

Secondary Data
Secondary data was gathered from multiple sources including Hero MotoCorp's official annual
reports, Society of Indian Automobile Manufacturers (SIAM) industry reports, published research

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

papers in marketing and consumer behavior journals, marketing management textbooks, and
news articles related to the Indian two-wheeler industry. Secondary data helped in understanding
the broader market context and provided a theoretical foundation for the study.

4.3 Sample Size and Sampling Method

A sample of 75 respondents was selected for this study. The sampling method used was
purposive sampling (also known as judgmental sampling), where respondents were selected
based on their direct relevance to the study, i.e., individuals who had either recently purchased a
Hero two-wheeler from Rajaj Pvt. Ltd. or had visited the showroom with the intent to purchase.
This ensured that all respondents had first-hand experience with the dealership's promotional
activities.

The sample comprised 75 respondents: 42 males and 33 females. The age distribution ranged
from 18 to 55 years, with the largest group (38%) falling in the 18–25 age bracket.
Occupationally, the sample included students (24%), private sector employees (32%),
government employees (16%), self-employed individuals (20%), and homemakers (8%).

4.4 Questionnaire Design

The questionnaire was designed to be simple, clear, and easy to fill out. It was available in both
English and Hindi to ensure accessibility for all respondents. The questionnaire consisted of 15
questions covering the following areas:

[Link]. Question Area Type

Q1 Age of respondent Demographic

Q2 Gender of respondent Demographic

Q3 Occupation Demographic

Q4 Monthly household income Demographic

Q5 Are you aware of Hero's sales promotion offers? Awareness (Yes/No)

Q6 How did you learn about current promotions? Multiple Choice

Q7 Which promotional offer influenced your visit? Multiple Choice

Q8 Did the promotional offer impact your decision to buy? Likert Scale (1–5)

Q9 Which promotion do you find most useful? Ranking

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

[Link]. Question Area Type

Q10 Rate the attractiveness of EMI offers Likert Scale (1–5)

Q11 Did exchange offers affect your purchase decision? Yes/No + Rating

Q12 Were you satisfied with the discount offered? Likert Scale (1–5)

Q13 Would free accessories influence your purchase? Yes/No

Q14 How likely are you to recommend this dealership? Net Promoter Scale

Q15 Overall rating of promotional experience at the showroom Rating (1–5)

4.5 Limitations of Study

Every research study has certain limitations that must be acknowledged for the sake of academic
integrity. The limitations of this study are as follows.

First, the study is limited to a single dealership in a single city, which restricts the generalizability
of the findings to other Hero dealerships, other cities, or other brands. Second, the sample size of
75 respondents, while sufficient for a student project, may not be large enough to draw
statistically robust conclusions applicable to the entire customer population. Third, the study was
conducted over a two-month period, which may not capture seasonal variations in consumer
behavior, particularly the significant uptick in sales during Diwali and other festive seasons.

Fourth, self-reporting bias is a potential issue, as respondents may not always accurately recall
the factors that influenced their purchase decisions. Finally, the cross-sectional nature of the data
means that causal relationships between promotional activities and purchase decisions cannot be
definitively established, only correlational associations can be inferred.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

CHAPTER 5: DATA ANALYSIS & INTERPRETATION

This chapter presents the analysis and interpretation of data collected from 75 respondents
through the structured questionnaire. The data is organized into tables and visual charts
(represented as scaled bar and distribution tables) to ensure clarity and ease of understanding.
Each table or chart is followed by an interpretation of the key findings.

5.1 Age-wise Distribution of Respondents

Age Group No. of Respondents Percentage (%)
18 – 25 years 28 37.3%

26 – 35 years 22 29.3%

36 – 45 years 15 20.0%

46 – 55 years 7 9.4%

Above 55 years 3 4.0%

Total 75 100%

Chart 5.1 – Age-wise Distribution of Respondents (Bar Chart)

Category Value Bar

28 ███████████████████████████████████████████████████████
respo █████████████████████████
18–25 yrs
ndent
s
22 ███████████████████████████████████████████████████████
respo ████████
26–35 yrs
ndent
s

15 ███████████████████████████████████████████
respo
36–45 yrs
ndent
s

7 ████████████████████
respo
46–55 yrs
ndent
s

55+ yrs 3 █████████

respo
ndent

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Category Value Bar

Interpretation: The data reveals that the largest segment of respondents (37.3%) falls in the 18–
25 years age group, making young adults the primary target audience for Hero two-wheelers at
Rajaj Pvt. Ltd. This is followed by the 26–35 age group (29.3%), which comprises working
professionals. Together, these two groups account for over 66% of the sample, indicating that
Hero's products and promotional strategies must be tailored primarily to the needs and
preferences of young and middle-aged consumers.

5.2 Gender-wise Distribution of Respondents

Gender No. of Respondents Percentage (%)

Male 45 60.0%

Female 30 40.0%

Total 75 100%

Chart 5.2 – Gender Distribution of Respondents (Pie Chart)

Category Responses Share (%)

45
Male 60.0%
respondents

30
Female 40.0%
respondents

Interpretation: Male respondents form the majority at 60% of the sample, which is consistent with
the general demographic of two-wheeler buyers in India. However, the notable 40% female
participation indicates a growing trend of female customers for two-wheelers, especially scooters.
This is a significant insight for Rajaj Pvt. Ltd., suggesting that promotional strategies should
increasingly cater to female buyers by highlighting features like convenience, safety, and stylish
design.

5.3 Occupational Profile of Respondents

Occupation No. of Respondents Percentage (%)

Student 18 24.0%

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Occupation No. of Respondents Percentage (%)

Private Sector Employee 24 32.0%

Government Employee 12 16.0%

Self-employed / Business 15 20.0%

Homemaker 6 8.0%

Total 75 100%

Chart 5.3 – Occupational Profile of Respondents (Bar Chart)

Category Value Bar

18 ███████████████████████████████████████████████████████
respo █████
Student
ndent
s

24 ███████████████████████████████████████████████████████
respo █████████████████████████
Pvt. Employee
ndent
s

12 ████████████████████████████████████████
respo
Govt. Employee
ndent
s

15 ██████████████████████████████████████████████████
respo
Self-employed
ndent
s

6 ████████████████████
respo
Homemaker
ndent
s

Interpretation: Private sector employees form the largest occupational group (32%), followed by
students (24%) and self-employed individuals (20%). This profile suggests that Hero's two-
wheelers primarily serve people who need affordable and reliable daily transportation for
commuting to work or college. Government employees (16%) represent a stable income segment
that may be more interested in long-term value and less in promotional gimmicks. Promotions
such as loyalty discounts and service packages may be particularly effective with this group.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

5.4 Monthly Household Income of Respondents

Income Range (Rs./month) No. of Respondents Percentage (%)

Below Rs. 15,000 12 16.0%

Rs. 15,001 – Rs. 25,000 22 29.3%

Rs. 25,001 – Rs. 40,000 27 36.0%

Rs. 40,001 – Rs. 60,000 10 13.3%

Above Rs. 60,000 4 5.4%

Total 75 100%

Chart 5.4 – Monthly Household Income Distribution (Bar Chart)

Category Value Bar

12 ████████████████████████████████████
respo
< 15K
ndent
s

22 ███████████████████████████████████████████████████████
respo ██████████
15-25K
ndent
s

27 ███████████████████████████████████████████████████████
respo █████████████████████████
25-40K
ndent
s

10 ██████████████████████████████
respo
40-60K
ndent
s
4 ████████████
respo
> 60K
ndent
s

Interpretation: The majority of respondents (36%) fall in the Rs. 25,000–Rs. 40,000 monthly
household income bracket, confirming Hero's strong positioning in the lower-middle to middle-
income segment. A significant portion (29.3%) earns between Rs. 15,000–Rs. 25,000 per month,
making them highly price-sensitive and responsive to EMI offers and discount schemes. Only
5.4% earn above Rs. 60,000, indicating limited penetration in the higher income segment, which
is increasingly targeted by premium brands.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

5.5 Awareness of Hero's Sales Promotion Offers

Response No. of Respondents Percentage (%)

Yes, fully aware 38 50.7%

Somewhat aware 27 36.0%

Not aware 10 13.3%

Total 75 100%

Chart 5.5 – Awareness of Sales Promotion Offers (Pie Chart)

Category Responses Share (%)

38
Fully Aware 50.7%
respondents
27
Somewhat Aware 36.0%
respondents

10
Not Aware 13.3%
respondents

Interpretation: An encouraging 86.7% of respondents were at least somewhat aware of Hero's

current promotional offers, with 50.7% being fully aware. Only 13.3% were unaware, suggesting
that the dealership's promotional communication channels are broadly effective. However, the
36% who are 'somewhat aware' represent an opportunity for Rajaj Pvt. Ltd. to improve its
communication outreach, particularly through targeted digital marketing campaigns.

5.6 Source of Awareness About Promotions

Source No. of Respondents Percentage (%)

TV / Newspaper Advertisement 18 24.0%

Social Media (Facebook,

22 29.3%
Instagram)

Existing Customer Reference 17 22.7%

Showroom Banner / Walk-in 11 14.7%

SMS / WhatsApp from

7 9.3%
Dealership

Total 75 100%

Chart 5.6 – Source of Awareness About Sales Promotions (Bar Chart)

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Category Value Bar

18 ███████████████████████████████████████████████████████
respo ██████████
TV/Newspaper
ndent
s

22 ███████████████████████████████████████████████████████
respo █████████████████████████
Social Media
ndent
s

17 ███████████████████████████████████████████████████████
respo ███████
Word-of-Mouth
ndent
s

11 ████████████████████████████████████████
respo
Showroom Walk-in
ndent
s

7 █████████████████████████
respo
SMS/WhatsApp
ndent
s

Interpretation: Social media (29.3%) is the most prominent source of awareness, followed by
traditional TV and newspaper advertising (24.0%) and word-of-mouth from existing customers
(22.7%). This clearly demonstrates the growing importance of digital channels in reaching today's
consumers. SMS and WhatsApp marketing, though less popular at 9.3%, offer a direct and
personalized communication channel that can be strengthened. The high word-of-mouth figure
confirms that satisfied customers are a powerful organic marketing asset for the dealership.

5.7 Most Influential Sales Promotion Tool

Promotional Tool No. of Respondents Percentage (%)

Cash Discount / Price

28 37.3%
Reduction

Easy EMI / Zero Down

22 29.3%
Payment

Exchange Offer on Old Vehicle 14 18.7%

Free Accessories / Gifts 7 9.3%

Cashback Offers 4 5.4%

Total 75 100%

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Chart 5.7 – Most Influential Promotional Tool (Bar Chart)

Category Value Bar

28 ███████████████████████████████████████████████████████
respo █████████████████████████
Cash Discount
ndent
s

22 ███████████████████████████████████████████████████████
respo ████████
Easy EMI
ndent
s

14 ████████████████████████████████████████
respo
Exchange Offer
ndent
s

7 ████████████████████
respo
Free Accessories
ndent
s

4 ███████████
respo
Cashback
ndent
s

Interpretation: Cash discount and price reduction emerged as the most influential promotional
tool, cited by 37.3% of respondents. This is consistent with the price-sensitive nature of the target
market in Jabalpur. Easy EMI and zero down payment facilities were the second most influential
tool (29.3%), reflecting the financial constraints faced by many buyers in lower and middle income
brackets. Exchange offers were cited by 18.7% of respondents, indicating a significant segment
of repeat buyers who trade in their old vehicles. Free accessories (9.3%) and cashback (5.4%)
were less influential, suggesting these are supplementary rather than primary motivators.

5.8 Impact of Sales Promotion on Purchase Decision

Impact Level No. of Respondents Percentage (%)

Strongly influenced (5) 22 29.3%

Influenced (4) 29 38.7%

Neutral (3) 13 17.3%

Slightly influenced (2) 8 10.7%

Not influenced at all (1) 3 4.0%

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Impact Level No. of Respondents Percentage (%)

Total 75 100%

Chart 5.8 – Impact of Promotions on Purchase Decision (Pie Chart)

Category Responses Share (%)

22
Strongly Influenced 29.3%
respondents

29
Influenced 38.7%
respondents

13
Neutral 17.3%
respondents

8
Slight Influence 10.7%
respondents

3
No Influence 4.0%
respondents

Interpretation: A combined 68% of respondents (rating 4 or 5) indicated that sales promotions

significantly influenced their purchase decision. Only 4% reported no influence whatsoever. This
strongly validates the hypothesis that sales promotion is a powerful driver of purchasing behavior
at Hero showrooms. The 17.3% who remained neutral may represent consumers who had
already made up their minds to purchase or who prioritize factors like brand loyalty and service
quality over promotions.

5.9 Attractiveness of EMI Offers

EMI Perceived as Attractive? No. of Respondents Percentage (%)

Very Attractive 31 41.3%

Attractive 24 32.0%

Somewhat Attractive 12 16.0%

Not Attractive 5 6.7%

Not Applicable (Cash Buyer) 3 4.0%

Total 75 100%

Chart 5.9 – Attractiveness of EMI Offers (Bar Chart)

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Category Value Bar

31 ███████████████████████████████████████████████████████
respo █████████████████████████
Very Attractive
ndent
s

24 ███████████████████████████████████████████████████████
respo ███████
Attractive
ndent
s

12 ███████████████████████████████
respo
Somewhat
ndent
s

5 █████████████
respo
Not Attractive
ndent
s

3 ████████
respo
Cash Buyer
ndent
s

Interpretation: A remarkable 73.3% of respondents found EMI offers either 'Attractive' or 'Very
Attractive', making it the most universally appreciated promotional tool in the dealership's arsenal.
This underlines the critical importance of maintaining seamless and hassle-free financing options
for customers. The 4% who identified themselves as cash buyers represent high-value customers
who are not dependent on financing but should still be incentivized through premium service
packages or exclusive discounts.

5.10 Impact of Exchange Offers on Purchase Decision

Impact of Exchange Offer No. of Respondents Percentage (%)

Yes, strongly influenced my

19 25.3%
decision

Yes, partially influenced my

21 28.0%
decision

No significant impact 18 24.0%

Not applicable (first-time buyer) 17 22.7%

Total 75 100%

Chart 5.10 – Impact of Exchange Offers (Pie Chart)

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Category Responses Share (%)

19
Strongly Influenced 25.3%
respondents

21
Partially Influenced 28.0%
respondents

18
No Impact 24.0%
respondents

17
Not Applicable 22.7%
respondents

Interpretation: Exchange offers influenced the purchase decision of 53.3% of relevant

respondents (those who had an old vehicle to exchange). Among the 58 respondents who owned
an existing two-wheeler, 40 (69%) reported that exchange offers had some influence on their
decision. This highlights the importance of maintaining a transparent and competitive exchange
valuation process at the dealership. A low exchange value can be a deal-breaker, while a fair or
generous offer can close a sale that might otherwise be lost to a competitor.

5.11 Overall Satisfaction with Promotional Experience

Satisfaction Rating No. of Respondents Percentage (%)

Highly Satisfied (5) 25 33.3%

Satisfied (4) 30 40.0%

Neutral (3) 12 16.0%

Dissatisfied (2) 6 8.0%

Highly Dissatisfied (1) 2 2.7%

Total 75 100%

Chart 5.11 – Overall Satisfaction with Promotions (Bar Chart)

Category Value Bar

25 ███████████████████████████████████████████████████████
respo ████████████
Highly Satisfied
ndent
s

30 ███████████████████████████████████████████████████████
respo █████████████████████████
Satisfied
ndent
s

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Category Value Bar

12 ████████████████████████████████
respo
Neutral
ndent
s

6 ████████████████
respo
Dissatisfied
ndent
s

2 █████
respo
Highly Dissatisfied
ndent
s

Interpretation: 73.3% of respondents expressed satisfaction (rating 4 or 5) with the overall

promotional experience at Rajaj Pvt. Ltd. This is a strong positive indicator of the dealership's
promotional effectiveness. The 10.7% dissatisfied respondents should be investigated further to
understand the specific causes of their dissatisfaction, which could include unmet expectations
about discount quantum, poor communication of offer terms, or delays in EMI processing.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

CHAPTER 6: FINDINGS

Based on the data collected from 75 respondents and the analysis carried out in the previous
chapter, the following key findings have been identified. These findings represent the core
insights derived from the study and form the basis for the recommendations presented in the
subsequent chapter.

6.1 Key Findings

Finding 1: Young consumers dominate the customer base. The largest customer segment
(37.3%) visiting Rajaj Pvt. Ltd. is in the 18–25 age group. This demographic is highly influenced
by digital promotions, peer recommendations, and social media content. Dealerships that invest
in digital marketing and Instagram/Facebook campaigns are more likely to attract and convert this
segment.

Finding 2: Cash discounts and price reductions are the most powerful promotional tools. Out of
five major promotional tools, cash discounts were cited as most influential by 37.3% of
respondents. This underscores the price sensitivity of the Jabalpur market, where consumers
place a high premium on immediate monetary savings.

Finding 3: EMI facilities are almost universally appreciated. As many as 73.3% of respondents
found EMI offers attractive or very attractive. Given that the average price of a Hero motorcycle or
scooter ranges from Rs. 60,000 to Rs. 1,20,000, affordable EMI options are critical to making the
purchase accessible to lower and middle-income buyers who form the bulk of the target market.

Finding 4: Social media is the dominant channel for promotion awareness. Social media platforms
accounted for 29.3% of promotion awareness, overtaking traditional advertising channels. This is
a significant shift and indicates that the dealership should allocate a greater share of its marketing
budget to digital platforms, including targeted paid advertising on Facebook and Instagram.

Finding 5: Word-of-mouth remains a powerful channel. 22.7% of respondents became aware of

promotions through recommendations from existing customers. This highlights the importance of
customer satisfaction and referral programs. A formal referral incentive scheme could significantly
amplify this organic marketing channel.

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Finding 6: Exchange offers are highly relevant for repeat buyers. Among respondents who owned
an existing two-wheeler, 69% reported that the exchange offer played a role in their decision. The
perceived fairness of the exchange valuation is critical; any perception of undervaluation can lead
to customer loss.

Finding 7: A significant majority of buyers are influenced by promotions. 68% of respondents

rated promotions as having a strong or very strong influence on their purchase decision (rating 4
or 5 on a 5-point scale). This validates the strategic importance of maintaining active and well-
communicated promotional campaigns throughout the year, not just during festive seasons.

Finding 8: Overall satisfaction with promotional experience is high. 73.3% of respondents

expressed satisfaction with the promotional experience at the showroom. This is a positive
reflection of the dealership's salesforce quality and promotional execution. The remaining 10.7%
who were dissatisfied represent opportunities for improvement.

Finding 9: Female customers are a growing segment. The 40% female representation in the
sample, primarily interested in scooters like the Hero Destini 125 and Maestro Edge 125,
indicates an opportunity to design promotions specifically targeting women, such as safety gear
packages, ladies-specific EMI schemes, or free first-year insurance.

Finding 10: Private sector employees are the single largest occupational buyer group. At 32% of
the sample, salaried professionals in the private sector are prime targets for salary-linked EMI
products and corporate discount schemes that Hero FinCorp can offer through tie-ups with local
companies and industries in Jabalpur.

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CHAPTER 7: CONCLUSION

This project report has attempted to study, analyze, and evaluate the sales promotion strategies
employed by Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) and their impact on the purchasing
decisions of consumers in the Jabalpur market. Based on the data collected, analyzed, and
interpreted in the preceding chapters, the following conclusions can be drawn.

Sales promotion is a vital and indispensable component of the marketing strategy of Rajaj Pvt.
Ltd. In a market characterized by intense competition, price-conscious consumers, and growing
aspirations for personal mobility, sales promotion acts as the critical trigger that converts a
potential buyer's interest into an actual purchase. The study confirms that a well-designed and
effectively communicated promotional campaign can significantly increase showroom footfall,
shorten the purchase decision cycle, and boost monthly sales volumes.

Among the various promotional tools available, cash discounts and price reductions emerged as
the most universally influential, particularly for the price-sensitive lower and middle-income
segments that dominate the Jabalpur market. EMI facilities are a close second, serving as the
key enabler for customers who lack the immediate liquidity to make an outright cash purchase.
These two tools together — discounted pricing and flexible financing — form the backbone of the
dealership's promotional strategy.

Exchange offers occupy a unique position in the promotional toolkit, as they address a specific
segment of repeat buyers who own older vehicles and are looking to upgrade. The effectiveness
of exchange promotions depends critically on the perceived fairness of the exchange valuation
process. Transparent, standardized, and competitive valuations can turn exchange offers into a
powerful differentiator for Rajaj Pvt. Ltd. against competing dealerships.

The study also reveals that the communication landscape for sales promotions has shifted
significantly toward digital channels. Social media platforms, particularly Facebook and
Instagram, now play a more prominent role than traditional TV and newspaper advertising in
creating awareness about Hero's promotional offers. This shift is driven primarily by the young
consumer base (18–35 years) that forms over 66% of the dealership's customer population. Any
promotional strategy that does not incorporate a strong digital component risks failing to reach its
primary target audience effectively.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

Word-of-mouth, driven by satisfied customers, continues to be a powerful and cost-effective

source of promotion awareness. This underlines the importance of after-sales service quality and
customer relationship management as indirect promotional tools. A customer who has a positive
experience at Rajaj Pvt. Ltd. — from the initial sales interaction through to the after-sales service
experience — becomes an organic brand ambassador who drives referral business.

The overall satisfaction level with the dealership's promotional activities is encouraging, with
73.3% of respondents expressing positive views. However, the 10.7% dissatisfied customers
represent a risk to the dealership's reputation in the age of social media, where a single negative
review can reach hundreds of potential buyers. Proactive grievance redressal and follow-up with
dissatisfied customers is therefore essential.

In conclusion, sales promotions at Rajaj Pvt. Ltd. are a well-recognized and impactful part of the
customer's purchase journey. The challenge going forward is to evolve these promotions from
being primarily price-based to encompassing a richer mix of value-added benefits, digital
engagement, and personalized communication that can build deeper customer loyalty and long-
term brand preference, rather than just driving one-time transactional purchases.

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Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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CHAPTER 8: SUGGESTIONS & RECOMMENDATIONS

Based on the findings and conclusions of this study, the following practical suggestions and
recommendations are offered to Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) for improving and
enhancing its sales promotion strategy. These recommendations are grounded in the data
collected from respondents and the observations made during the internship period.

8.1 Invest in Digital Marketing and Social Media Promotions

Given that social media has overtaken traditional advertising as the leading source of promotion
awareness (29.3%), Rajaj Pvt. Ltd. should allocate a dedicated budget for digital marketing. This
should include creating professionally managed Facebook and Instagram business pages with
regular posts about new launches, offers, and customer testimonials. Paid social media
advertising, including geo-targeted ads directed at consumers within a 30-km radius of Jabalpur,
can be a highly cost-effective way to reach the target demographic.

The dealership should also invest in creating short video content for YouTube and Instagram
Reels showcasing test rides, customer delivery moments, and the features of key models. Such
content is highly shareable and can generate organic reach at minimal cost. Hero MotoCorp itself
provides content assets to its dealers; maximizing the use of these official resources can further
reduce content creation costs.

8.2 Enhance the EMI Experience

While EMI offers are appreciated by 73.3% of respondents, the actual process of availing finance
can be a source of frustration for many customers due to documentation requirements and
processing delays. Rajaj Pvt. Ltd. should work with its banking and NBFC partners to streamline
the loan application process, ideally enabling instant pre-approval through a mobile-based
application using Aadhaar-linked e-KYC.

The dealership should also consider training its sales executives to proactively educate
customers about EMI eligibility and required documents before they visit the showroom. This can
reduce the incidence of incomplete applications and the frustration caused by repeated visits for
documentation purposes.

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of Technology

8.3 Develop a Formal Customer Referral Program

Word-of-mouth from existing customers accounts for 22.7% of promotion awareness. To
systematically capitalize on this organic channel, Rajaj Pvt. Ltd. should launch a structured
referral reward program. Under this program, existing customers who successfully refer a new
buyer to the dealership should be rewarded with tangible benefits such as free service vouchers,
cashback credits, branded merchandise, or loyalty points that can be redeemed against future
service charges.

A referral program not only leverages the network of satisfied customers but also deepens their
engagement with the brand, making them more likely to return for their next vehicle purchase.

8.4 Improve Exchange Offer Transparency and Valuation Process

The study found that exchange offers influence over 53% of relevant buyers. However, the
effectiveness of this tool is contingent on the customer's perception of the fairness of the
valuation. Rajaj Pvt. Ltd. should adopt a standardized and transparent valuation process, ideally
using a digital tool or app that generates an estimated exchange value based on the vehicle's
make, model, age, and condition.

Customers should be allowed to receive a preliminary exchange quote before they physically visit
the showroom, either through a WhatsApp chatbot or an online form on the dealership's website.
This reduces uncertainty and makes it easier for customers to plan their purchase.

8.5 Design Women-Specific Promotional Packages

With women comprising 40% of the respondent sample and showing strong interest in the
scooter segment, there is a clear opportunity to design promotional packages tailored specifically
for female buyers. These could include a 'Ladies' First' package featuring a free first-year
comprehensive insurance policy, a free safety helmet, and a discounted AMC (Annual
Maintenance Contract).

Promoting these packages through women-oriented social media content and partnerships with
women's colleges, corporates, and self-help groups in Jabalpur can help capture this growing
segment more effectively.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

8.6 Introduce a Loyalty Points Program

Currently, most promotional activities at Rajaj Pvt. Ltd. are transaction-focused, meaning they
incentivize the initial purchase but do not actively reward long-term customer loyalty. The
dealership should consider introducing a Hero Loyalty Rewards program where points are earned
on every vehicle purchase, service visit, spare parts purchase, and insurance renewal.

Accumulated points can be redeemed for free services, accessories, or discounts on future
purchases. Such a program encourages customers to return to the same dealership for all their
Hero-related needs, rather than seeking cheaper alternatives elsewhere.

8.7 Leverage Festive Season Promotions More Aggressively

Festive seasons such as Diwali, Navratri, Akshaya Tritiya, and Dhanteras are peak buying
periods for two-wheelers across India. Rajaj Pvt. Ltd. should plan its promotional calendar well in
advance for these events, coordinating with Hero MotoCorp's national promotional campaigns
and supplementing them with local add-ons such as bumper lucky draws, extra exchange
bonuses, and limited-time free accessories packages.

Pre-festive marketing campaigns should begin at least four to six weeks before the festival to
build anticipation and encourage customers to plan their purchases in advance. Collecting
advance bookings with a nominal deposit can also help the dealership accurately plan inventory
requirements.

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of Technology

CHAPTER 9: LEARNING EXPERIENCE

The internship at Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) was one of the most enriching and
transformative experiences of my academic journey. Over the course of two months — from June
to July 2024 — I had the opportunity to observe and participate in the day-to-day operations of a
live automobile dealership, witnessing firsthand how theoretical marketing and management
concepts are applied in a real-world business environment.

9.1 Practical Exposure to Sales Processes

One of the most valuable lessons I learned during the internship was how the actual sales
process at a two-wheeler dealership works, from the moment a customer walks into the
showroom to the moment they drive out with their new vehicle. I observed how experienced sales
executives greet and engage with walk-in customers, identify their needs and budget constraints,
guide them through the product range, and use promotional offers strategically to accelerate the
purchase decision.

I learned that effective selling is as much about listening as it is about talking. The best sales
executives at Rajaj Pvt. Ltd. spent the first few minutes simply understanding the customer's daily
commute distance, income, family situation, and past vehicle experience before presenting any
product. This needs-based selling approach ensured that the right vehicle was recommended to
the right customer, leading to higher satisfaction and fewer returns.

9.2 Understanding Sales Promotions in Practice

My internship project topic — sales promotion strategies — gave me a unique lens through which
to observe and analyze the dealership's activities. I was directly involved in helping the sales
team distribute promotional pamphlets, update the showroom's promotional banners, and assist
customers at the finance desk. These hands-on activities gave me a practical understanding of
how promotions are planned, communicated, and executed at the ground level.

I also learned that the effectiveness of a promotion depends not just on its content (the discount
amount or the EMI rate) but also on how it is communicated. Customers who were clearly
explained the total benefit of an offer — including the monetary value of free accessories, the

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savings on insurance, and the reduced EMI — were far more likely to proceed with the purchase
than those who received only a vague mention of 'special offers'.

9.3 Customer Interaction and Data Collection Skills

Administering the survey questionnaire to 75 respondents was a challenging but immensely
rewarding experience. I learned how to approach customers respectfully, explain the purpose of
the survey clearly, and ensure that responses were accurate and unbiased. Many customers
were initially reluctant to participate, but with patience and good communication, I was able to
secure genuine and thoughtful responses from most of them.

This experience significantly improved my interpersonal communication skills, my patience in

dealing with diverse personalities, and my ability to handle rejection gracefully — skills that I know
will be invaluable in any future managerial or business development role.

9.4 Understanding the Automobile Market

Prior to this internship, my knowledge of the Indian automobile industry was largely textbook-
based. The internship gave me a ground-level perspective on the competitive dynamics of the
two-wheeler market in a Tier-2 city. I gained insights into how Hero MotoCorp's pricing and
product strategy translates into dealership-level operations, how competitor brands (Bajaj, Honda,
TVS) are positioned, and how customers in Jabalpur make their purchase decisions based on a
combination of functional needs, financial constraints, and social aspirations.

9.5 Professional Development

The internship also contributed to my overall professional development. Working in a corporate
environment — attending morning meetings, maintaining punctuality, collaborating with
colleagues from different functions, and presenting my findings to the Sales Manager — taught
me the importance of professional conduct, time management, and team collaboration. The
experience helped me bridge the gap between the academic world and the professional world,
making me more confident about entering the workforce after completing my MBA.

I am deeply grateful to the entire team at Rajaj Pvt. Ltd. for their patience, support, and generosity
in sharing their knowledge and experience. The insights I have gained during this internship will

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem
Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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remain with me throughout my professional career, serving as a practical foundation upon which I
will continue to build my knowledge and expertise in marketing and business management.

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Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

BIBLIOGRAPHY

The following sources were referred to in the preparation of this internship project report:

Books and Textbooks

1. Kotler, P. and Keller, K. L. (2012). Marketing Management (14th Edition). Prentice Hall, New
Jersey.

2. Belch, G. E. and Belch, M. A. (2015). Advertising and Promotion: An Integrated Marketing

Communications Perspective (10th Edition). McGraw-Hill Education, New York.
3. Blattberg, R. C. and Neslin, S. A. (1990). Sales Promotion: Concepts, Methods, and Strategies.
Prentice Hall, Englewood Cliffs, NJ.

4. Beri, G. C. (2018). Marketing Research (6th Edition). Tata McGraw-Hill Education, New Delhi.

5. Kothari, C. R. (2014). Research Methodology: Methods and Techniques (3rd Edition). New
Age International Publishers, New Delhi.

6. Ramaswamy, V. S. and Namakumari, S. (2013). Marketing Management: Global Perspective,

Indian Context (5th Edition). McGraw-Hill Education, New Delhi.

Research Papers and Journals

7. Chandon, P., Wansink, B. and Laurent, G. (2000). A Benefit Congruency Framework of Sales
Promotion Effectiveness. Journal of Marketing, 64(4), pp. 65–81.
8. Mela, C. F., Gupta, S. and Lehmann, D. R. (1997). The Long-Term Impact of Promotion and
Advertising on Consumer Brand Choice. Journal of Marketing Research, 34(2), pp. 248–261.

9. Kumar, A. and Srivastava, P. (2013). Impact of Sales Promotion on Consumer Buying

Behavior in the Indian Automobile Industry. Indian Journal of Marketing, 43(7), pp. 34–45.

10. Sharma, R. and Kaur, P. (2016). Sales Promotion Strategies of Leading Two-Wheeler Brands
in India: A Comparative Analysis. Asian Journal of Management, 7(3), pp. 211–218.

11. Mishra, S. and Tripathi, A. (2021). Digital Lending and its Impact on Two-Wheeler Purchase
Decisions in Tier-2 Cities of India. Journal of Financial Services Marketing, 26(1), pp. 44–55.

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of Technology

Industry Reports and Websites

12. Hero MotoCorp Ltd. Annual Report 2023–24. Retrieved from [Link]

13. Society of Indian Automobile Manufacturers (SIAM). Annual Report 2023–24. Retrieved from
[Link]

14. India Brand Equity Foundation (IBEF). Indian Automobile Industry Report 2024. Retrieved
from [Link]

15. Hero MotoCorp Dealer Portal (Internal Reference). Promotional Guidelines and Schemes –
June–July 2024.

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Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
of Technology

APPENDIX A: SURVEY QUESTIONNAIRE

Project Title: A Study on Sales Promotion Strategy and its Impact on Consumer
Purchasing Decision

Dealership: Rajaj Pvt. Ltd. (Hero Agency, Jabalpur)

This questionnaire is designed purely for academic research purposes. All information provided
will be kept strictly confidential and will not be shared with any third party.

Section A: Demographic Information

Q1. What is your age?

□ 18–25 years □ 26–35 years □ 36–45 years □ 46–55 years □ Above 55 years

Q2. What is your gender?

□ Male □ Female □ Prefer not to say

Q3. What is your occupation?

□ Student □ Private Employee □ Government Employee □ Self-employed □ Homemaker

Q4. What is your approximate monthly household income?

□ Below Rs. 15,000 □ Rs. 15,001–25,000 □ Rs. 25,001–40,000 □ Rs. 40,001–60,000 □

Above Rs. 60,000

Section B: Awareness of Sales Promotions

Q5. Are you aware of the current sales promotion offers at Hero showroom (Rajaj Pvt. Ltd.)?

□ Yes, fully aware □ Somewhat aware □ Not aware

Q6. How did you come to know about the promotional offers? (Select one)

□ TV/Newspaper Advertisement □ Social Media (Facebook/Instagram) □ Recommendation

from existing customer

□ Showroom banner/Walk-in □ SMS/WhatsApp from dealership

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Section C: Impact of Promotional Tools

Q7. Which promotional offer most influenced your visit to/purchase from this showroom? (Select
one)

□ Cash Discount □ Easy EMI / Zero Down Payment □ Exchange Offer □ Free Accessories
□ Cashback

Q8. On a scale of 1 to 5, how much did the sales promotion influence your purchase decision? (1
= No influence, 5 = Strong influence)

□1 □2 □3 □4 □5

Q9. How attractive do you find the EMI offer available at this dealership?

□ Very Attractive □ Attractive □ Somewhat Attractive □ Not Attractive □ Not Applicable

(Cash Buyer)

Q10. Did the exchange offer (for your old vehicle) affect your decision to purchase?

□ Yes, strongly influenced □ Yes, partially influenced □ No significant impact □ Not

applicable

Q11. Would a free accessories offer (helmet, seat cover, lock) influence your purchase decision?

□ Yes, definitely □ Yes, somewhat □ No, not really

Q12. Were you satisfied with the discount offered to you at the time of purchase?

□ Highly Satisfied □ Satisfied □ Neutral □ Dissatisfied □ Highly Dissatisfied

Section D: Overall Experience

Q13. How likely are you to recommend Rajaj Pvt. Ltd. to a friend or family member? (1 = Very
Unlikely, 10 = Very Likely)

□ 1–3 (Detractor) □ 4–6 (Passive) □ 7–8 (Satisfied) □ 9–10 (Promoter)

Q14. What one improvement would you suggest in the promotional offers of this dealership?
(Open-ended)

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___________________________________________________________

Q15. Overall, how would you rate the promotional experience at this showroom?

□ Excellent (5) □ Good (4) □ Average (3) □ Poor (2) □ Very Poor (1)

Thank you for your valuable time and responses!

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Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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APPENDIX B: SAMPLE SURVEY DATA TABLE

The table below presents a sample of 30 respondent records from the survey data collected from
75 respondents. The full dataset was used for analysis in Chapter 5. Data is presented in
anonymized form (Respondent No. only) to maintain respondent confidentiality.

Column Key: A=Age Group, G=Gender, O=Occupation, Q5=Promotion Awareness, Q7=Most Influential
Tool, Q8=Purchase Influence (1–5), Q9=EMI Attractiveness, Q15=Overall Rating

Re Ge
Occ Awar EMI Exchange Rati
sp Age nde Inf. Tool Q8 Score
up. e? Rating ? ng
. r

Stu
R0 18-
M den Fully Discount 5 Very Attr. N/A 5
1 25
t

Pvt.
R0 26-
F Em Fully EMI 5 Very Attr. Partial 4
2 35
p.

Stu
R0 18- Some
M den EMI 4 Attractive N/A 4
3 25 what
t

Self
R0 36- - Exchang
M Fully 4 Attractive Strong 5
4 45 em e
p.

Pvt.
R0 26- Some
F Em Discount 4 Very Attr. N/A 4
5 35 what
p.

Stu
R0 18-
M den Fully Discount 5 Attractive N/A 5
6 25
t

Gov
R0 46- t.
M Fully EMI 3 Somewhat Strong 3
7 55 Em
p.

Ho
R0 26- me Some Free
F 3 Somewhat N/A 3
8 35 mak what Acc.
er

R0 18- M Stu Fully Discount 5 Very Attr. N/A 5

9 25 den

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Re Ge
Occ Awar EMI Exchange Rati
sp Age nde Inf. Tool Q8 Score
up. e? Rating ? ng
. r

Self
R1 36- - Exchang
M Fully 4 Not Attr. Strong 4
0 45 em e
p.

Pvt.
R1 26-
F Em Fully EMI 5 Very Attr. N/A 5
1 35
p.

Stu
R1 18- Some
M den Discount 4 Attractive N/A 4
2 25 what
t

Ho
R1 46- me Not Free
F 2 Somewhat N/A 3
3 55 mak Aware Acc.
er

Pvt.
R1 26-
M Em Fully EMI 5 Very Attr. Partial 5
4 35
p.

Gov
R1 36- t. Some Exchang
M 3 Attractive Strong 4
5 45 Em what e
p.

Stu
R1 18-
F den Fully Discount 4 Very Attr. N/A 4
6 25
t

Self
R1 26- - Cashba
M Fully 3 Attractive No Impact 3
7 35 em ck
p.

Self
R1 - Not Exchang
55+ M 2 Not Attr. Strong 2
8 em Aware e
p.

Stu
R1 18- Some
F den EMI 4 Attractive N/A 4
9 25 what
t

Pvt.
R2 26-
M Em Fully Discount 5 Very Attr. N/A 5
0 35
p.

Pvt.
R2 36- Some
F Em EMI 4 Attractive Partial 4
1 45 what
p.

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Rajaj Pvt. Ltd. (Hero Agency, Jabalpur) | MBA Internship Project Report 2024 | Rohit Patel | Shri Ram Institute
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Re Ge
Occ Awar EMI Exchange Rati
sp Age nde Inf. Tool Q8 Score
up. e? Rating ? ng
. r

Gov
R2 46- t. Exchang
M Fully 4 Very Attr. Strong 4
2 55 Em e
p.

Stu
R2 18-
M den Fully Discount 5 Very Attr. N/A 5
3 25
t

Ho
R2 26- me Not Free
F 2 Somewhat N/A 3
4 35 mak Aware Acc.
er

Self
R2 36- -
M Fully Discount 4 Attractive No Impact 4
5 45 em
p.

Stu
R2 18-
F den Fully EMI 5 Very Attr. N/A 5
6 25
t

Pvt.
R2 26- Some Exchang
M Em 3 Attractive Partial 4
7 35 what e
p.

Gov
R2 46- t.
M Fully Discount 4 Somewhat Strong 3
8 55 Em
p.

Stu
R2 18-
F den Fully EMI 5 Very Attr. N/A 5
9 25
t

Self
R3 36- - Some Cashba
M 3 Not Attr. No Impact 3
0 45 em what ck
p.

Note: The above data is a representative sample of 30 records. Full analysis of all 75 respondents was
used in Chapter 5. Age: 18-25, 26-35, 36-45, 46-55, 55+. Gender: M = Male, F = Female. Occup. =
Occupation. Q8 Score = Purchase Influence (1–5 scale). Inf. Tool = Most Influential Promotional Tool.

A Study on Sales Promotion Strategy – Rajaj Pvt. Ltd., Jabalpur | Rohit Patel, MBA 3rd Sem