A Study on Advertisement and Sales Promotion of Automobiles in Nepal, Analysis of Customers Perception on Bajaj and Hero Honda Motorbikes (At Present Hero and Honda Separated)

Abstract

The world market today has been narrowed by the information system. The customers keep information of the products or services through various sources. To inform about the products or services to the customers is the other part of companies‟ activities to increase the sales. Thus, producing the product is not sufficient; in addition it should be promoted as well. This principle applies in case of bike as well. Various brands of bikes are available in the Nepalese market along with the various models. If consumer attempts to collect information about the various models of various brands of bike, it is obvious that he/she would be confused on the crowd of the brands. Thus, a bike company as well practices various promotional tools. Among various promotional tools, the study has examined the advertising and sales promotion only. The main objective of this study is to examine the effect of advertising and sales promotion on the sales of Bajaj and Hero Honda bikes, considering these two bikes as much consumed by the Nepalese riders. The other specific objectives are to examine the brand awareness, view towards purchasing of consumers, effectiveness of advertising and sales promotion and perception of Bike Companies to promotion.

To achieve the objective, the study has been based on primary data analysis and thus is experimental in nature. One set of questionnaire is prepared and distributed to 20 riders of Bajaj Bike and 20 riders of Hero Honda Bike, and the other set of questionnaire is prepared and distributed to 2 Sales Officers and 2 Marketing Officers of each HH Bajaj Bike Company and Syakar Company Limited. The study has found that consumers remain aware about the brand of bike through the promotion by various medias. The demographic variables affect the purchasing decision of the riders and the advertising and sales promotion are effective in influencing the buying decision of the consumers. The sales promotion mainly causes the riders to refer other people as per the views of Bike Companies. The study finally concludes that the sales promotion and advertising have turned result oriented whenever applied; however, it is difficult to determine which promotion tool is much effective. Finally, the study recommends that the advertising and sales promotion should be continuously practiced keeping the consumers at centre while creating either advertising or offering value through sales promotion.