Automobile Industry in Bangldesh Essay

1. 1 Introduction zero(prenominal) days knowledge is non just con beauteousd to books and chassisrooms. Internship is such a program that helps to seek the knowledge and ascertaining of the courses and to map them in a concrete orbital cavity. Internship facts of life gives this opportunity to be eng suppu deemd in an organization where it is possible to leave an experience of the real disdain world and to see divers(prenominal) realistic aspects of education. merchandise Department of Chittagong University is committed to stupefy merchandising professionals for the market who go forth not still benefit the society as a self-co bring downed scarcely also wee path of a better next for the next generation.Internship program is a step towards fulfill this commitment by giving the students an opportunity to get ready for the real world in advance they enter into it. 1. 2 Research Issue This investigate is a necessary of the internship program for my MBA program. My supervisor Professor A. J. M. Nuruddin Chowdhury assigned me the fadeic. I guide attempt my level best to make it as an excellent sensation. I utilise wholly the latest info and entropy. I need been serving this union as an intern under Sales & Marketing Department for dickens months. I got privilege to put latest data.My job responsibility is to turn relationship with our pbegrudge and potential customers, gross gross sales products and provide supporter date to condemnation by giving latest products information. So, I am get the opportunity to be very close to the customer. I have the idea why customer choose, the condition of leave and the reason of using pragoti Industries Product. My supervisor Mr. Khayrul Haue officer of Sales & Marketing Department guides me succession to succession to make this report fruitful. 1. 3 Research Objectives The main designateing of this report is to have an assessment about over alone activities of sales & merchand ise section.How they manage all the selling exploit, what run it is providing to the customer and how agents ar acquiring benefit from it and finally what is the gain for pragoti from this project, in short how it is fiddleing up the requirements of the three stakeholders of the attach to. The objectives of the study ar as fol first-class honours degree To get the interoperable experience by doing job with expert of sales & marketing manager. To understand the drive structure of PIL. To understand the channels of PIL. To observe the business process & know the inputs procurement governance, warehousing system and the selling and distribution system of the association. To know the marketing and pricing policies of their products To know about the products & the quality of products produced by the company. To know the accounting system and the transparency in the preparation of the m 1tary statements. To know the application of the Corporate Governance in PIL To pr oduce a report that lead give a guideline to the future researchers or customers of the Pragoti Industries Ltd on the different aspects that are covered in this report. Finally, to suggest the direction with some recommendations so that the management can identify some of the defective areas in the organization and initiate necessary steps to bring changes in those areas. 1. 4 Research Methodology The current study is conducted primarily in participatory research analysis method and secondary on practical and theoretical analysis. The research supervisor proposed research topic. Primary and secondary data was collected from all possible source. The primary sources are as follows bill of the production and management sector of the company. Face-to-face conversation with the respective offices and stuffs of the sedulousness. associate field study as provided by the officer concerned. The secondary sources of data and the information are Web site address Book nates articles Internal magazine published by PIL Different brochures of PIL Information provided by my supervisor 1. 5 SCOPE OF THE STUDY This internship report covers all the aspects of sell environment from all the three perspective, UBL, retailers and agent. This report also gives an overview about the company deal about the mission and goals of the company, the marketing mix & the strategies, competitive strategies etc.This report has been prepared by dint of extensive magnetic discussion with the customer, sales affix manager, and agent and with the former(a) stakeholder. While preparing this report, I had a great opportunity to have an in depth knowledge of sales activities of the Pragoti Industries Ltd. It also helped me to achieve a first-hand perception of a leading state run machine industriousness in Bangladesh. 1. 6 Limitation of the Study I have tried my best to collect the maximum information from the authority, management, production department and marketing departmen t.But I have faced the following problems To make a report it is very trouble full to collect the information from various personal for the job constrain. Planning & production departments has no appropriate maintenance of planning procedure and articles. Time is not sufficient for various activities to prepare a report. Non-availability of published data. Information was not provided due to business secrecy. Lack of adequate knowledge about research by peeled-sprung(prenominal) employee Non-availability of secondary data. Chapter- 2 Literature Review 2. 1 Introduction.Bangladesh is totally under break-danceed in the sector of locomotecar diligence. As It has no political machinemobile industriousness, the sector is totally depended on import, except a fewer travel- put together units. Due to increase measuring of film, requirement and increase every year it has to import a huge amount of railway cars from the opposite countries. But in recent times, Bangladesh gondolamobile industry is turning around, as a government issue topical anesthetic and foreign investor are interest about this sector for investment. So the sector has a great potentiality and prospect in the reading.Pragoti is the only state own locomote company in Bangladesh and it do & reclaim only government related automation production. Bangladesh machine tools Factory (BMTF) was arrive at in February 11, 1979 and it is the commercial automobile assembly plant, maintain by Bangladesh Army, especially for defense industry. Walton & Aftab is the greatheartedst Bangladeshi hidden automobile company in Bangladesh. Walton political party establish a vauntingly plant for motorbike production, on the other hand Aftab automobile is famous for bus approachingories assemble. pic.Mitsubishi Pajero will be set up in Bangladesh Mitsubishi Pajero, Hino Bus, Tata bus/Truck, Proton automobile maker company already buildup their production assemble plant in Bangladesh and here is the important news, near capital of Bangladesh, spatial relation name is Dolaikhal, is the largest automobile market in Bangladesh for expire & new automobile separate. 2. 2 Bangladesh near popular Automobile company harken Aftab Automobiles Pragoti TagAZ Bangladesh (Proposed) Mitsubishi Pajero Walton Bangladesh motorcar Tools Factory 2. 3 Auto move market of Bangladesh.Bangladesh automobile industry is not a big industry and maximum automobile part are imported from other countries . Besides, on that point is no quality local manufacturer of move and components. So, parts and components are in general imported from countries like Japan, UK, Taiwan, mainland China, Korea, Malaysia, USA, India, Indonesia, Pakistan, etc. The market of parts and components of this country is very small but expanding rapidly. Commercial importers import a bulk amount of parts and components that are distributed by wholesalers and retailers.Final users get the parts from the retailers and the retailers buy parts from the importers. However, on that point are also importers who have their own retail outlets. An assembler may also be an importer who requires a large quantity of parts and components for its assembling unit. A limited act of commercial importers import parts and components from different sources. In most cases, the assembler imports parts and components from the country where the rat is jobated. some(prenominal) assemblers crimson barter for parts and components directly from the big importers. on that point is another(prenominal) group inwardly the distribution channel of parts and components i. e. auto overhaul centers like garage, mechanical workshop, body building units, etc. The servicing centers purchase parts from the whole seller as well as from the retailer. abate users get parts and components from retailers dealing in different type and brand of automobile. Although no local manufacturer of quality parts does exist, but brisk negotiations are going on to set up joint accident parts and component manufacturing units with China, Korea and Taiwan.Present structure of parts and components market is graphically shown below pic In Bangladesh, neither we have an automobile industry nor a quality auto parts industry. So, the commonwealth of Bangladesh have no lighten idea about the automobile industry or auto parts and components and their employ. The market of auto parts and components is influenced by couple of elements.People trance purchase auto parts and components, they are influenced by several factors and these auto servicing centers, workshop and garage, motor pool managers, Institutional Importers (i. e.embassy), retailers, agents of branded automobile, 2. 4 Domestic parts and components industry Presently, there is no well-organized and quality manufacturer of parts and components in Bangladesh. Some low quality indigenous manufacturing of parts and components are there but they are carried out a gainst unique(predicate) ensnare to meet emergency requirement. There is no mass production to meet the requirements. Given below is some idea of what the local manufacturers try to produce Filters, radiators, radiator hoses, air filter housing Brake pads, brake drum, brake discElectrical parts such as battery, horn, wiring, wiper and washer assembly, head lights and other lights Trim and upholstery such as carpet, floor mat, rear contribution shelf, seat assembly, safety belt and melt damping sheet General parts such as paint and thinner, under seal, tires and tube, and mirrors. Chapter- 3 Growth & information of Automobile Industry in Bangladesh 3. 1 Bangladesh Automobile Prospect Bangladesh has a great prospect and potentiality in the development of automobile industry there has been an increasing trend in the use of all sorts of automobiles/ vehicles in Bangladesh.However, the change magnitude demand of individual types of automobile varies from case to case. As a result of increasing demand of individual the annual demand for automobile is increasing with a great speed an statistic show the demand has change magnitude into 30 percent than the expire year with the Improvement of roads and highways and increase figure of speech of bridge and culverts are also responsible for motivating mass to buy vehicles for their day to day activities. Again the Improvement of life personal manner in the urban areas is also responsible for the development automobile industry .With the passage of time the living standard of general people of BD has increased and they also turn into low class to middle class, middle class to stop digit class and in recent times the amount of upper middle class has increased which means additive demand for automobile There are also some another key reason for whom Bangladesh has a great potentiality in this industry. They are mentioned below administration annual development plan has given priority on development of automobil e industry Special attraction for Japan made vehicles locomote of Rickshaw little by little. Getting popularity of Small car/sports vehicle Rent-a-car getting popularity Reduction of tax on the new motor vehicles Govt. initiative to swim 10,000 commercial vehicles Expanded and increased volume of export and import 3. 2 Comparative scenario of different types of automobiles in Bangladesh A comparative scenario of different vehicles and their usage trend may be explained as below (a) Motorcycle The use of pedal in Bangladesh is increasing day by day by a new group of users. Motorcycle is extensively used in Bangladesh in 2 rural and urban areas.The use of cycle has gradually increased in Bangladesh due to easy to drive easy access to remote location cheapest transport Longevity of the vehicle easy to call and park at any place. The general users are the students, individual businessmen, officials of marketing companies and pharmaceutical industries. Over the last one and a half decades, the field level officials of different non- government organizations have been using a large number of bicycles. In Bangladesh, both locally assembled motorcycle and imported motorcycle are acquirable for intending users as detailed below(i) Locally assembled motorcycle Mainly, there are about 20 locally assembled brands. For example ATLAS, EMMA, NITOL and SINGER. List of the local motorcycle assembling houses is given in the annex. (ii) Imported motorcycle There are at least 7-8 different regular brands of motorcycle and these are Honda CD 80, Yamaha, Suzuki from Japan, Xinfu, Jangshen, Jailing, Hero, TVS Victor, Yamaha, Suzuki, Bajaj, Vespa, etc. (b) Auto jinrikisha / Three oscillationers There has been a phenomenal increase in the number of auto rickshaw and tampoo in Bangladesh. Now, it is an important vehicle in Bangladesh.Low and middle class family members mainly use these vehicles. But, the government of Bangladesh has already banned these ii vehicles to repeal environmental pollution. It is estimated that presently there are 160,000 auto rickshaws including unauthorized units in capital of Bangladesh City alone. There has been a phenomenal. However, effective 1st September,cc2, the deuce stroke auto rickshaw will be totally banned, which is judge to dramatically reduce the requirement of parts for these type of vehicles, but increase demand for the new CNG auto rickshaw and three stroke auto rickshaws will be there with increased demand for parts and components.(c) Motorcars increase demand, stinting development and changed life style have resulted in a great increase in the number of motor cars and the demand for motor cars is still increasing day by day. Both brand new and reconditioned cars are imported into the country. Statistics show that majority of the people usually choose reconditioned motorcars more than brand new cars due to lower expenditure. In Bangladesh, more than 65% of the total motorcars are coming from Ja pan. Many Bangladeshis living in Japan involve themselves in reconditioned car business.Recently, the government has put an age restriction on the import of reconditioned motor cars. Reconditioned cars more than 3 days old can not be imported. The government has also reduced the duties and taxes on the import of new cars to discourage reconditioned car import. Impact is that people now can buy new cars at a credible price having longer durability. The government has introduced new system of taxicab in 1998. As a result, the number of motorcars has been increasing. But, the requirement of spare parts and components will be lesser.Again, after the 1st September 2002, the ban of auto rickshaw will lead to a significant increase in motorcars mainly in the form of taxi cabs. Use of motorcars has increased tremendously, which is evident from the statistics for the last five years shown in the chart below (d) Light & loaded down(p) commercial vehicles (bus, minibus, truck, pick-up, etc) Like the motorcar, there has been an increasing trend in the number of light and heavy commercial vehicles that include mini bus, bus, human howlers, rider carriers, trucks, pick-ups, covered vans, large covered vans, etc.Over the last one decade, the use of these types of vehicles has increased at a high rate. This is due to increased demand for the these types of vehicles/automobiles effectively backed by institutional financial meet to procure them. This growth rate will continue to increase in the near future. The average growth rate is 5. 63% and 4,644 in the number of vehicles annually. (e) Farm and plain equipment/vehicles Also, there is an increasing trend in the number of farm and agricultural equipment/vehicles due to increased application of modern tools and techniques in farming and agricultural production.Now-a-day, agricultural vehicles like force play tiller, tractor and trailers are existence used in the rural areas more frequently than the past. During the last one decade, various agricultural development projects funded by the different donor agencies have been implemented in the rural areas and under those programs, the farmers were given financial facilities through NGOs and banks to procure modern agricultural equipment including farm vehicles. One of the key elements that made this possible is the availability of lease financing facilities in the country and the large amount of agricultural credit funds.It has been observed that there is a valid growth in the number of agricultural equipment every year. This growth rate will continue to increase in the near future provided there is no drastic change in the government policy relating to agricultural sector like reduction in the subsidy and assistance and low cost fund for the farmers. The average annual growth rate is 2. 5% and 125 in number of vehicles every year. 3. 3 Estimated demand of automobile /vehicles in Bangladesh.Taking into consideration the future prospects and also keep ing the resent growth pace influenced by various elements discussed earlier, it is expected that there would an additional increase in the use of vehicles. In view of the possible new avenues and prospects and looking into the weighted average growth rate of 6%, table below shows estimated demand for the next five years. Table Projected demand of automobile /vehicles in Bangladesh Vehicle/Year Taxi Bus/ Minibus Tractor 3,646 plate 11, Agrabad C/A, Finley sign of the zodiac (3rd floor) P.O. box no. 73 Chittagong4100, Bangladesh Location of the manu milling machinery Barabkund, Dhaka-Chittagong Highway, Sitakund, Chittagong. Year of establishment 1966 under private ownership Nationalized Time afterwards liberation of Bangladesh on 11th May, 1972 typefaces of operation Assembling the Transport Vehicles Operated By Bangladesh Steel and Engineering Corporation under the Ministry of industry Company Type Autonomous Initial Authorized Capital 20 Cores, Divided into 20, 00,000 shares tk100/- pay Capital.25 Lakhs, Divided into 25,000 no. of Ordinary Shares. Products Car Assembling, Automotive part Main sources of CMD Kits from Vauxhall Motors of England American Motors Corporation (AMC) of USA Isuzu Motors Corporation, Mitsubishi Motors Corporation, Nissan & Toyota Motors of Japan KIA Motors, Daewoo Motors of Korea Aelous, Dong Feng of China HML TATA, Swaraj Mazda, Mahindra & Mahindra, Maruti, Eicher and Ashok Leyland of India Recent Initiative A CNG Conversation Unit is established in Tejgoan Workshop at Dhaka. Nature of Business Govt. approved automobiles marketing company, bushel Distributor of Isuzu, Suzuki vehicles from Japan and Bajaj, Swaraj Mazda & Maruti vehicles from India. Parts & Accessories, Sawafuji & Suzuki beginning from Japan, Scott & English industrial Generator from Singapore & G. S. Automotive battery from Indonesia Initial production capacity (Approximately) 200 Present production capacity (Approximately ) 900 Logo pic Website http//www. bsec. gov. bd/html/ent_progoti.php .4. 2 organise of Pragoti Industries Limited The sky is not the limit for them but their expectations are at heart limit. Their imagination soars beyond conventional barriers. They share their destiny with their beloved motherland. They expect to serve her the better in the greater quest for discipline economic emancipation.. 4. 3 Mission of PIL We shall be at the forefront of automobile industry development by Anticipating automobiles required by all our customers everywhere and innovatively preparation them beyond expectation. Setting industry benchmarks of world class standard in delivering customer value through our comprehensive product range, customer attend and all our activities Building an exciting team-based working environment that will attract, develop and retain employees of exceptional ability who help celebrate the success of our business, of our customers and of national development Mainta ining the highest ethical standards and a community responsibility worthy of a leading integrated citizen Continuously improving productivity and profitability. 4. 4 vision of PIL.To be in thee forefront of national development by providing all the customers inspirational strength, dependable support and the most comprehensive range of vehicle solutions, through our team of professionals who work passionately to be outstanding in everything we do. 4. 5 Organizational structure of the Pragoti Industries Ltd. (Agrabad Branch) Branches of Pragoti Industries Limited Chittagong mogul 11, Agrabad C/A, Finley House (3rd floor), post box no. 73, Chittagong. Production Factory Barabkund, Dhaka-Chittagong Highway, Sitakund, Chittagong. Dhaka piazza 151-152, Tejgaon C/A, Dhaka-1208.Pragoti Industries Limited (Local Management) Name Position Engr. Md. Nazmul Huda Managing music director Md. Mustafizur Rahman General conductor ( Marketing & Admin) Engr. Md. Ali Chowdhury Addl. Chief Eng ineer (purchase) Engineer Nizamul Haque Addl. Chief Engineer (In arraign Plant) Dr. Zubaid-Ur-Rahman Addl. Chief Medical Officer Md. Ashraful Haider Khandaker DGM (Com) Md. Golam Nabi Deputy Chief Accounts Officer Md. Faridul Islam DGM (com) Dhaka Office Board of Directors (PIL Company Board) Sl. Name Designation 1 Md. Ataur Rahman hot seat Chairman, BSEC. predict88-02-8114616, 8112808. 2 Mr. Md. Forhad Uddin Director Addl. Secretary, Ministry of Industries. Telephone 88-02-9563561, 7194156 (Res. ) 3 Mr. P R Borua Director Rtd. DIG. Phone 88-02-8912414 4 Mr. Sheikh Md. Mobarak Hossain. Director Director (Planning & Development), BSEC Telephone 88-02-8130473, 9338429 5 Mr. A T M Pearul Islam Director Telephone 88-02-8122898, 9348371 cubicle 01711895957 6 Mr. Capt. (Retired) K. A. K. Modabber Hossain Director Secretary , BSEC Telephone 88-02-8121451Res 8757332 7 Mr.Dider Mohammad Abdur Rab Director Genarel Manager, Office of the Gene ral Manager, Sonali Bank Ltd,Chittagong. 8 Engr. A. k. M. Solayman Haque Managing Director Managing Director, Pragoti Industries Ltd. Telephone 88-031-723110, 725712 9 Mr. Md. Helal Uddin Director General Manager, Janata Bank Ltd, Divisional Office, 27 Agrabad C/A, Chittagong. Chapter- 5 Marketing organization of pragoti industry The Marketing & Sales Department of PIL is one of the most important departments of PIL.In this department, there are one DGM (Depute general manager), two assistant manager and four executives. They are smart, energetic, experienced and high educated. They are capable of handling clients and selling the products in the efficient and effective way. pic post & Responsibilities of Marketing & Sales Department ? Providing Quotation among prospect about inquiry. ? Receiving locate from different prospect or customer. ? Selecting specific model for customer from factory on behalf of their choice. ? Direction to factory engineer for mad e up pre necessity model base on customer choice. ? Delivery the order pre specific date.? Receiving product price through notes, chque, or money receipt. ? Deposit that amount into accounts department. ? Attending seminar, symposium as part of marketing activities. ? Input all of sales & money receipt in respective journal. Chapter- 6 Marketing go strategies of Pragoti Industries 6. 1 Product As we have known that Pragoti industries limited does not produce auto mobiles but only assembles the auto mobiles. After assembling it mainly markets the following products Product name and model, origin of CKD & country of origin Sl No Product name salutary example Origin of CKD ( ClOSE knap DOWN) Country of origin 1 MITSUBISHI PAJERO 4.4 LWB WGON MITSUBISHI MOTOR JAPAN V31VHNDKB connection 2 MITSUBISHI PAJERO KH4WGNMR MITSUBISHI MOTOR JAPAN CR-45 participation 3 TATA TC bus topology LP01316 TC TATA ENGINEERING & INDIA LOCOMOTIVE COMPANY LTD. 4 TATA mini motortruck LPT 709 TATA ENGINEERING & INDIA LOCOMOTIVE COMPANY LTD. 5 ASHOK LEYLAND MINI TRUCK HR-55 ASHOK LEYLAND LTD INDIA 6 NISSAN NAVARA PIC UP YD25DDTI NISSAN MOTORS LTD. JAPAN 7 MITSUBISHI MICROBUS L-300 P13WHLNDER MITSUBISHI MOTOR JAPAN CORPORATION Pragoti Industries ltd. Product name, model & Specification/FeaturesSl No Product Name Model Specification/Features 1 MITSUBISHI PAJERO 4. 4 LWB WGON Long wheel base, 5 door, 9 set ( approved by BRTA), Petrol engine 4. 4, 4 cylinder, V31VHNDKB 86 k. w. vaulting horse precedent/117 PS/5500 RPS, drive by right hand, ruffianly top metal, 2350 CC, wheel base 2725 m. m. , digital clock, cigarette lighter, fold belt, power steering, 1 additional wheel with cover. Co lour BLACK 2 MITSUBISHI PAJERO CR-45 KH4WGNMR Long wheel base, 5 door, 7 set ( approved by BRTA), Diesel engine 4 WD, 4 cylinder, 100 k. w.horse power/136 PS/3500 RPS, drive by right hand, hard top metal, 2477 CC, wheel base 2800 m. m. , p ower steering, 1 additional wheel with cover. Co lour BLACK,SILVER 3 TATA TC BUS LP01316 TC Tata LPO-1316/55TC,52 set Deluxe bus, power steering, 4*2, fag by right hand,6 cylinder, horse power 160PS/K. W120/2500 RPM, water supply cold, Diesel engine, Wheel footing 5545 CC,1additionl wheel. 4 TATA MINI TRUCK LPT 709 Tata LPT-709 EX, 3. 5 ton truck chassis, 4. *2, 4 cylinder, 3783 CC, Turbo Charge inter cooled, diesel engine, Drive by right hand, Wheel Base 3400 CC, output 66.3 km,90 PS/2400RPS,1additionl wheel. 5 ASHOK LEYLAND MINI Truck HR-55 HR-55 in 1. 5 ton mini truck chassis, 4 cylinder, 2771 CC in line over beware volt direct injection, water cold, diesel engine, power steering, output 59 k. w/3600RPM, 6 NISSAN NAVARA PIC UP YD25DDTI Double Cabin 4/4, Dingell pick up,2488 (2500) CC, 4 Door, 5set with driver, power steering, 128 horse power/4000 RPS, Wheel Base 3200, radio, Digital Clock, CD player, power Window, Bumper 7 MITSUBISHI MICRO BUS P13WHLNDER 5 door (Sliding both side), 12 set ( approved by BRTA), 4.2 cylinder, 86 k. w. L-300 horse power/114 PS/5750 RPS, drive by right hand, hard top metal, power steering, 1 additional wheel with cover, bilt in ac . Co lour WHITE 6. 2 Services In case of providing services Pragoti industries limited is not exception. Like other automobiles industries it provides services which are followings every product has one year warrantee. All repairmen services are provided through 7 (seven) servicing agents of Pragoti Industries Ltd which are situated at Dhaka and Chittagong. A. Dhaka city No. of agents -05.The servicing agents are at Motijeel, Fakirarpul, Tejgaon, Baridhara and Tongi. B. Chittagong City No. of servicing agents 02. The servicing agents are at Sholoshahar and Jamal Khan Lane Product. 6. 3 Pricing de lineine is the element of the marketing mix that produces revenue the other elements produce costs. Price is the easiest marketing mix elements to adjust product features, channel, and even promotion take more time. Price also communicates to the market the companys intended value position of its product and brand. Companies set prices by selecting a general pricing approach that includes one or more of three sets of factors.We examine these approaches the cost base approach (cost plus pricing, break-even analysis, and direct profit pricing) the buyer-based approach (value-based pricing) and the competition-based approach (going rate and sealed bid pricing) Pragotis pricing Method Pragoti fo0llows the cost- based method in setting prices of all its products. They consider different prices and estimate break-even volumes, probable demand, and profits for each. Pragoti Industries ltd. Product name, price per unit & payment terms Sl No Product Name Price per unit Payment terms 1 MITSUBISHI PAJERO 4.4 55,00,000 full cash 3,05,000 Total=58,05,000 2 MITSUBISHI PAJERO CR-45 75,00,000/= Fully cash 76,000/= With additio nal fittings Total=75,76,000 3 TATA TC BUS 24,58,000 35% in down payment, additional 65% paid 18% interest with 36 monthly installment. 4 TATA MINI TRUCK 16,50,000 Fully cash 5 ASHOK LEYLAND MINI Truck 16,50,000 Fully cash 6 NISSAN NAVARA PIC UP 41,72,000 Fully cash 7 MITSUBISHI MICROBUS 28,50,000 Fully cash L-300 6. 4 PromotionIn recent time marketing not only calls for just developing a impregnable product but also pricing it attractively and making it available to the targeted customer. Companies also must communicate with their customers and they try to create a good customer relation among them. To communicate well, the firm often hires advertising agencies to develop effective advertisement, give appointment to active experienced officers and executives, give on line services to the big businessmen or organization, and create a private relationship with clients. As PIL assembles automobiles for selective customers it spends less than the others.It mainly uses two types promotion. They are Consumer promotion tools & Advertising 6. 4. 1 Consumer promotion tools Short term incentive to encourage the sales of service or products of the firm is called sales promotion. PIL uses the following Consumer promotion tools they are Price Pack At the time of festival PIL offer some special discount for Suzuki vehicles. Cash rejoin offer PIL still thinking about it. Patronage reward For corporate sales (Huge quantity) special discount offering. 6. 4. 2 Advertising publicizing is the fine art of convincing people that the doors to open standards are never closed.The Advertisement plan & campaign plan are similar in line & structure. It matches the right audience to the right Message & represents it in the right long suit to reach that audience. Objective of advertising plan are Create ken among 60% of target audience. Pragoti industries use the following media for advertising its products. They are report Advertise publish in The Daily Newspap er with multi colour, regarding after sales service facilities. Direct place New products separate sends by direct direct with product specification, advantage and design.Calendar any year Pragoti Publishes colourful and attractive calendar with picture of their products. Direct mail New products catalogue sends by direct mail with product specification. Advertising problems PIL often can not advertise in the media since it is very expensive and difficulty in the corporate level. Finance 6. 4. 3 Distribution Channel Most of the Producers use intermediaries to bring their products to market. They try to act upon a distribution channela set of interdependent organizations complex in the process of making a product or service available for use or consumption by the consumer or business user.The distribution functions of PIL are made by 32 dealers. Functions of the dealers Sell the cars to the private company, people or NGO which are produced by the 1st party. here(predicate) Pr agoti is the 1st party, They cannot sell other companys cars except the Pragoti within the duration of the contract, The full payment will be collected by them from the buyers, Help the buyers in taking permission from BRTA, Will sell at least 40 cars within the deed duration, The performance will be evaluated after 6 months. Dealership will be cancelled if they hand out to achieve the quota.