CHAPTER – I

INTRODUCTION

1
GENERAL INTRODUCTION

Motorcycle history begins in the second half of the 19th

century. Motorcycles are descended from the “safety bicycle”, a bicycle
with front and rear wheels of the same size and a pedal crank mechanism
to drive the rear wheel. Despite some early landmarks in its
development, motorcycles lack a rigid pedigree that can be traced back
to a single idea or machine. Instead, the idea seems to have occurred to
numerous engineers and inventors around Europe at around the same
time.
Bikes have been ruling the automobile sector in India for more than 50
years now and are a favorite among young men for the look, style and
speed it has. Apart for these, there are many advantages of having a bike
in India. For example, it gives you the space to move in an extremely
congested road. Moreover, you can use a bike to travel even on the very
narrow roads with ease. Roads in India are full of bikes and while these
are a passion for some, they are used for a number of practical purposes.
In the year 1955, reliable motorcycles were needed by the Indian
Government suitable for its police and Army for patrolling the country's
border highways. Most of the leading India bike manufacturers get bike
parts made in India itself. However, the latest designs and styles are
quite similar to the ones which are manufactured internationally. Bikes
which are made in India are especially designed for the Indian roads and
have indicators that show increase mileage and maximum throttle.
There are many different types of bikes that you can find on the Indian
roads. You can find sports bikes, E-bikes, economy bikes and bikes that
are suitable for all age groups.
With various types of bikes available on the Indian market, the two-
wheeler industry has something to suit every individual's taste. India is
the second largest motorcycle and the fourth largest commercial vehicle

2
manufacturer in the world. Over 13 million people work directly or
indirectly in the auto industry. Indian car exports amounted to 550,000
units in 2013-14. Passenger vehicle exports reached 622,000 units while
2.46 m two-wheelers (mainly motorcycles) and 408,000 three wheelers
were shipped overseas.

A long established and highly respected bicycle brand throughout

Europe and the number 1 bicycle brand in Austria, with dealers in over
50 countries worldwide, KTM officially arrived in the Australian market
in 2011 boasting a truly unique and innovative product range including
the latest in 29er technology.
KTM manufacturing is based in Mattighofen, Austria, and the company
has been designing and manufacturing bicycles since 1964. KTM
manufactures an impressive 200,000+ bicycles per year, a number which
is growing rapidly.

3
 RESEARCH METHODOLOGY

INTRODUCTION
Research is a careful inquiry or examination to discover new
information and to expand and verify existing knowledge. According to
Clifford Woddy, Research is defined as “the process which includes
defining and redefining problems, formulating hypothesis or suggested
solutions, collecting , organizing and evaluating data, making deductions
and reaching conclusions and atlast carefully testing the conclusions to
determine whether they fit the formulating hypothesis.”
STATEMENT OF THE PROBLEM
Sales management originally referred exclusively to the direction of
sales force personnel. Later the term look on broader significance in
addition to the management of personnel selling. Sales management is a
challenging profession. Top management hold sales executives
responsible for obtaining sales volume, handling the selling operation so
as to make contributions to profits, and seeing to it that the business
continues to grow. Society looks to them to assure the delivery of
products that final buyers want and can pay for and to use their influence
to see to it that products are “socially responsible”. Sales manager have
broad responsibilities. They recruit, select, and train sales personnel
provide them with reasonable assignments and goals and motivate them
to optimum effort. They coordinate the personnel selling operation with
other order getting methods, marketing activities of the distributive
network. They check whether they have reached department goals or
not. So a study on sales management help to recognize to know whether
the organization has succeed identifying the main assignment ,to
maintain an effective sales and also to know the caliber of the staff in
planning , coordinating, and controlling to ensure that personnel selling
activities make their optimum to the marketing effort.

4
SCOPE OF THE STUDY
Sales management is a business discipline which is focused on the
practical application of sales technique and the management of a firm’s
sales operations .It is an important business function as net sales through
the sale of products and services and resulting profit drive most
commercial business these are also typically the goals and performance
indicators of sales management.
The study on sales management will be useful for further analysis and
case studies. This project will be useful if the management goes for a
study about their sales position of their products. This study opens the
gate of reference for others who will be studying the sales position of the
company, in future.

IMPORTANCE OF THE STUDY

The study has been conducted to know the sales of KTM bikes. To know
how much it has influenced the youth sector and also to know the
specifications of different variants of this bikes. It also help in knowing
the specifications as well as the performance of this bikes with other two
wheelers. And also to know the sales management of this enterprise,
whether they are able to achieve the goal they have set and also they are
able to keep it stable. It also give the clear information regarding
whether there is awareness of these bikes among the people.

5
OBJECTIVES OF THE STUDY

The objectives of the study are as follows:

Primary objectives:
(a) To identify the sales volume of different products of KTM AG,
Kodimatha, Kottayam.

(b) To measure the relationship between the price & demand of

customers of various products of KTM AG, Kodimatha , Kottayam.

Secondary objectives:
(a) To forecast the sales volume of different products of KTM AG,
Kodimatha, Kottayam .
(b) To identify the continuing growth pattern of KTM AG,
Kodimatha , Kottayam, from its inception onwards.
(c) To measure the demand and customer awareness of KTM products
among the youth segment in Kottayam region .
TYPE OF RESEARCH
The type of research we used in this project study is Descriptive in
nature
DATA COLLECTION METHODS
Following are the sources for the collection of data:
(a) Primary Data
(b) Secondary Data

6
Primary Data

1. Structured Questionnaire
2. Observation

Secondary Data

a. Internal Secondary Data

1. Company’s Internal Records

2. Brochure
3. Newsletters
4. Company Website
5. Notices

b. External Secondary Data

1. Internet
2. Magazines
3. Journals

7
SAMPLE SIZE AND METHOD OF SAMPLING

The details are as follows:

(a) Universe. The universe for the purpose of this report was finite i.e. ,
KTM AG, Kodimatha , Kottayam.
(b) The sampling unit was the customers who were the users of KTM
bikes and also included other people who are not that much aware about
this product. And it included nearby 50 persons in Kottayam region
itself.
(c) Method of sampling adopted was Simple Random Sampling
method because all the customers have relatively different levels of
satisfaction, idea and awareness of this product, thus a sample size of
50 was considered to be adequate.

TOOLS AND TECHNIQUES

(a) Percentage Method
(b) Bar Diagrams
(c) Pie Charts
(d) Trend Analysis
(e) Correlation Analysis

8
LIMITATIONS OF THE STUDY
The limitations of the study are listed as follows:
(a) We had no prior exposure to the corporate environment.
(b) To some extend, some customers are reluctant to reveal the
information or their attitude about the objectives we used in the study.
(c) The organization is reluctant to share sensitive data / information that
is confidential to the firm.
(d) The time was also a limiting factor for the completion of the study.
PERIOD OF THE STUDY
The study was conducted for a period of 15 days.
CHAPTERIZATION
CHAPTER-I – INTRODUCTION
Introductive chapter Consists of General Introduction, Statement of The
Problem, Objectives of the Study, Importance of the study, Limitations
of the Study etc..
CHAPTER-II –REVIEW OF LITERATURE AND THEORETICAL
FRAMEWORK
It consists of the review of literature &the theoretical aspects
CHAPTER-III-DATA ANALYSIS AND INTERPRETATIONS
It consists of tables, figures, graphs and its interpretations of the study.
CHAPTER-IV-SUMMARY,FINDINGS & RECOMMENDATIONS
It deals with the summary, findings & recommendations of the study.
CHAPTER – V – SWOT ANALYSIS
It deals with the Strengths , Weakness , Opportunities and Threats of the
company

9
COMPANY PROFILE

10
 COMPANY PROFILE

KTM INDIA
HISTORY OF THE COMPANY

KTM Motorrad AG with registered office in

Mattighofen produces and develops race-ready offroad and street
motorcycles. KTM's products are distributed via 31 sales subsidiaries
and two joint ventures in Dubai and New Zealand, to more than 1,700
independent dealers and importers worldwide.

Since 1995, the Company in addition to its KTM-branded vehicles has

also been developing and producing motorcycles under the HUSABERG
brand in KTM Motorrad AG, which due to the acquisition of the license
rights to the HUSQVARNA brand in 2013 are marketed as "Husqvarna
Motorcycles" again.

As global market leader in the offroad competition segment, KTM in the

1990s also started to develop street motorcycles. By now, the Company
is offering an attractive and comprehensive product range of offroad and
street motorcycles.

Since 2007, KTM has been cooperating with the Indian Bajaj Group.
The cooperation focuses on the joint development of entry-level, 125 to
390cc street motorcycles, which are produced in India and distributed

11
under the KTM brand by both companies in their respective core
markets.

On January 24, 2012, the new 200 DUKE was presented to the public in
New Delhi for the first time ever. With this motorcycle, KTM entered
the Indian market together with Bajaj. The 200 DUKE is the first KTM
model ever to be offered worldwide. The KTM vehicles are suited for
use both in competition and in recreational sports.

KTM has been successfully involved in racing for decades. Racing

offers the ideal environment in which to test our latest developments in
the fields of materials and engineering in the most severe conditions.
True to KTM's corporate philosophy of "READY TO RACE", the
knowledge gained from motorsports is incorporated directly into series
production. This approach allows customers to experience the latest
racing technology when riding or driving their vehicles. This strong
involvement in racing has been an essential element in KTM's corporate
success from when the company was first founded. KTM is committed
to continuing this strategy.

ACHIEVEMENTS

KTM record of success in racing – with over 250 world championship

titles in the various racing classes, countless national titles and 14
consecutive victories in the Dakar Rally, the toughest rally in the world
– is impressive proof of the high level of technical competence and the
quality of the KTM products.

12
2014 racing successes in summary

MOTOCROSS

65cc World Champion

Jett Lawrence (AUS)

85cc World Champion

Kim Savaste (FIN)

MXGP World Champion

Antonio Cairoli (ITA) + Manufacturer

MX2 World Champion

Jordi Tixier (FRA) + Manufacturer

450 MX USA
Ken Roczen (GER)

ENDURO

SuperEnduro World Champion

13
TaddyBlazusiak (POL) + Manufacturer

Enduro 1 World Champion

Christophe Nambotin (FRA) + Manufacturer

Enduro 3 World Champion

Matthew Phillips (AUS) + Manufacturer

Extreme Erzbergrodeo& Red Bull Romaniacs

Jonny Walker (GBR)

RALLY

Cross-Country Rallies World Champion

Marc Coma (ESP) + Manufacturer

Dakar
Marc Coma (ESP)

14
ROAD RACING

Moto3 World Champion

Manufacturer

2014 OVERALL

8 rider world titles

7 manufacturer world titles

251 world titles overall

14 consecutive title at Rally Dakar (2015)

Slogan
“Ready To Race”

Mission
Every new ride on your KTM is an ADVENTURE waiting to be
experienced – “a dream that is yours to realize”. The adventurous spirit
lurks in all of us, but few ever answer its call. For those with the courage
and vision to follow their sense of adventure, KTM is the perfect match.
True adventurers, permanently challenging themselves, looking to new
horizons for the next goal, destination or opponent to conqured.
15
Vision

The KTM Group is a premium manufacturer of high-performance and

ready-to-race vehicles with the KTM and Husqvarna brands for offroad
and street use, supported by continuous innovation and a differentiated
product design. It is our corporate vision to become the biggest global
sports motorcycle producer. To accomplish this, KTM is focusing on
further developing its position across all market segments and on
opening up new markets. KTM has realized its goal of becoming the
most successful manufacturer of motorcycles in Europe and the United
States and of standing out clearly from the competition by materially
increasing its market shares. KTM managed to continue this positive
trend and thus increased revenue and sales to a record level for the
fourth time in a row.
The product range here covers all important categories of engine
capacities and performance classes (125–1300 cc) and was also
expanded by the addition of multi-track vehicles. The small-engine
street motorcycles – developed in cooperation with our Indian partner,
Bajaj – open up a new, global segment for KTM. In March 2011 the 125
Duke was launched successfully on the European market, and the next
step was taken in January 2012 with the launch of the 200 Duke. This
latter was the first motorcycle to be offered globally by KTM. And just a
year later, the next globally available motorcycle, the 390 Duke, was
launched in the 2013 financial year. 2014 saw the launch of the 125 RC,
200 RC, and 390 RC Supersport models.

16
The 200 Duke and 390 Duke are important steps in implementing our
global product strategy and expanding into the emerging markets. With
these and the RC models also developed in collaboration with Bajaj and
launched in 2014, the KTM street product range offers uniquely varied
and wide-scale access to young buyers.
After the launch of the Travel Enduro 1190 Adventure in 2013, the
Adventure range was expanded in the period under review to include the
1290 Super Adventure and the 1050 Adventure and was presented to the
global public for launch in 2015.
In the first year after its full integration into the KTM Group, the
Husqvarna brand, with its concentration on Swedish roots and its diverse
heritage, reported the highest ever sales figures in its 111-year history.
Our successful involvement in offroad racing all over the world durably
strengthens the KTM brand and our leading market position. Directly
incorporating into serial products the successful technology that
originates from racing is a central element of our corporate strategy,
which is illustrated by the corporate philosophy of READY TO RACE.
Reentering the street world championship in 2012 with a Moto3 racing
engine developed completely on our own and dominating that class
since that reentry fits in seamlessly with that global product and sports
strategy. More than 250 world championship titles are an impressive
testament to a continuous, strong commitment to racing sports.
Extending our product range and opening up new niches and markets are
essential elements of KTM's long-term growth planning strategy.
Accordingly, our strategy focuses on research & development, on further
developing our distribution network, on an efficient supplier structure
and on investing in a strong and global brand.
KTM cultivates closeness to its customers through a well-trained
network of dealers passing on customer feedback and potential market
trends directly to the factory. Their professionalism and customer focus

17
are vital to our corporate success. KTM therefore strives to sustainably
further the partnership with its dealers, which is grounded in fairness and
trust. Due to the constant qualitative growth in product range and a
specially developed store concept, KTM dealers can run a profitable
business solely by selling KTM products.
FUTURE PLANS

 To enlarge the business through the method of market

segmentation in all over Kerala.

 To introduce the new products that’s more user friendly & more
comfortable for the customers.

 To implement more promotion strategies for increasing the sales of

KTM bikes there by the company would like to maximize their
profit.

 To implement more marketing strategies for competing with their

competitors in all over Kerala.

18
19
PRODUCT PROFILE

20
PRODUCT PROFILE
Table – 1.1

MODEL 200 DUKE 390 DUKE RC 200 RC 390

ENGINE 199.5cc,1 cyl, 373.27cc,1 cyl, 199.5cc,1cyl, 373.27cc,1 cyl,

4stroke 4 stroke 4 stroke 4 stroke
TYPE
25 Ps @ 10,000 rp
19.2 Nm 43.5 Ps @ 9000 25 Ps @ 10,000 43.5 Ps @9000
POWER rpm Rpm Rpm

8000 rpm 35 Nm @ 19.2 Nm @ 35 Nm @

TORQUE 7000 rpm 8000 rpm 7000 rpm

TRANSMISS 6 speed 6 speed 6 speed 6 speed

-ION
Trellis structure,
black Trellis structure Trellis structure, Trellis
FRAME
Black black structure,black

front :WP USD Front :WP USD WP USD WP USD

SUSPENSI- 43/rear: WP- 43/rear: WP- 43/rear: WP- 43/rear: WP-
ON Monoshock Monoshock Monoshock Monoshock

Dual disc brakes Dual disc

BRAKES Dual disc brakes Dual disc brakes 280mm/230mm brakes
280mm/230mm 280mm/230mm (front/rear) 280mm/230mm
(front/rear) (front/rear) (front/rear)

------------------- ABS by bosch

ABS ------------------ ABS by bosch

WEIGHT 136 kg(127 kg 154 kg(145 kg 154 kg(147.5 kg 166 kg 159.5kg

without fuel) without fuel) without fuel) without fuel)

21
KTM 200 DUKE
Bajaj Auto will convert its niche pro-biking stores across India into
exclusive KTM stores to sell the newly launched sports bike, Duke 200
that comes at an invitation price of 1.17 lakh (ex-showroom) Delhi.The
country's second-largest two-wheeler maker holds a 40% stake in KTM
Power Sports AG, Europe largest sports bike maker, and will distribute
the high-end European bikes from existing 34 pro-biking showroom that
would be done up with orange KTM livery and six new ones will added
in 2012.Besides, there would be 40 service centers dedicated for KTM
bikes. Bajaj would assemble the new bike at its Chakan plant and market
it across the country through KTM stores. The bikes can be booked
across these outlets and deliveries would start from early February.
"We plan to establish KTM as a sporty motorcycle brand that would
offer niche European features to Indian users. Between the Bajaj Pulsar
and the KTM Duke, we intend to further strengthen our dominant
position in the sports motorcycle segment in India," Bajaj Auto MD
Rajiv Bajaj said. Following the multi-brand concept, Bajaj would
continue to sell Kawasaki Ninja bikes through these KTM branded
stores, but would shift its high-end bikes like the Pulsar 200 and
Avenger cruiser range to regular Bajaj Auto dealerships that sells its
other volume bikes.

KTM 390 DUKE

IndianCarsBikes said that with a top speed of 160 km/h (99 mph) and a
0 to 100 km/h (0 to 62 mph) time of 5.5 seconds, the 390 Duke is the
fastestThe KTM 390 Duke and RC390 are 373.2 cc
(22.77 cu in) displacement single-cylinder engine motorcycles made in

22
India byBajaj Auto, in collaboration with Austrian
manufacturer KTM.The 390 Duke standard debuted at the
2012 EICMA show inMilan, Italy,and went on sale in India in June,
2013.The RC390 was presented at EICMA the following year.After the
Duke's initial release, KTM CEO Stefan Pierer announced plans to
export the 390 Duke to the US for 2014, which would make it the first
Indian-made KTM motorcycle sold in the US market.Bajaj said
eventually the bike will be sold in 80 countries worldwide. The 390
Duke's engine displacement and weight place it in the midrange size,
and it sells for more than three times the average price of a motorcycle
in India.As one Indian reviewer put it "The 390 Duke may well be a
simple little A2 license commuter for the European rider, but in the
environs of Mumbai traffic, it’s a proper rocket-powered scalpel."
In the US market, the same motorcycle is considered small-
displacement, lightweight, and relatively inexpensive. Similarly, the
UK Sunday Times said, "Given that the 390 Duke weighs less than
150kg when it's full of fuel, you have to sit on it to stop it blowing away.
It's as agile in traffic as a push-bike and whippet-thin," saying the bike
was ideal for young riders with the A2 license, limited to
47 bhp(35 kW), who would find it easy to ride and confidence-inspiring,
while feeling "fast and sporty". Such a bike in the UK would also appeal
to experienced riders looking for a practical and efficient commuter bike
and runabout. The 390 Duke won the 2013–14 Jury's Choice Bike of the
Year. KTM added a racing version of the RC390, the RC390 Cup for
use by motorcycle racers ages 13 to 21 in the ADAC Junior Cup,
a MotoGP event. The RC390 Cup has no lights or mirrors, and no ABS
to reduce weight, and an upgraded WP suspension, fully adjustable front
and rear. The engine isdetuned to a 38 hp (28 kW) with a block-off
plate, and has an Akrapovič exhaust.

23
KTM RC 200
The RC200 is the entry-level sportsbike from KTM for the Indian
market. The fully-faired motorcycle, based on the Duke 200, is one of
the few budget track-oriented machines on sale in India.The RC200 uses
the same 200cc single-cylinder liquid-cooled engine with power output
of 25bhp and 19Nm of torque, mated to a six-speed gearbox. This
motorcycle uses the modified version of the Duke’s trellis frame chassis
to extract better performance on track. With the kerb weight of just 154
kg, the RC200 has a superb power-to-weight-ratio of 162bhp per ton.
Apart from the full fairing, the RC200 also gets additional features over
the Duke 200 which includes dual projector headlamps, clip-on
handlebars, LED tail lamps, aerodynamic windshield, disc-brake with
Bosch ABS as standard feature. The motorcycle uses 43mm inverted
WP front shocks and a monoshock suspension at the rear. The LCD
display provides plenty of details including two tripmeters, shift lights
and low fuel indicator.
Unlike the Duke 200, this new bike gets super sticky Metzelertyres for
better road grip in both wet and dry conditions. The RC200 is
manufactured and exported from the Bajaj’s Chakan facility along with
the other entry-level models from KTM. The RC200 mainly competes
mainly with the CBR 250R and the Yamaha ABS in the entry-level
performance motorcycles segment.

KTM RC 390
KTM has a new flagship in India, the sporty RC390, and we’ve just put
it through a full road test to confirm exactly how it performs in India.

24
The list of exotic sportbikes available now in India is seemingly
unending, with a variety of quick two-wheeled machines available to
cater to all rider’s tastes. Sadly, due to soaring price tags, many larger-
capacity bikes retailing in India remain out of reach for most Indian
enthusiasts.
Over the past few years though, KTM with Bajaj has slowly been
changing things, bridging the gap between the affordability of everyday
commuter bikes and the capabilities of focussed performance bikes.
Now, this super successful partnership has introduced yet another
motorcycle, that’s being touted as nothing short of extraordinary.
The newly launched 200 and 390 RC or Race Competition siblings are
two fully faired sportbikes that share the same engines as their Duke
siblings, yet ride nothing like them.
We get astride the flagship KTM RC390 to tell you how this bike
performs in Indian conditions.KTM has equipped the RC390 with a
forged piston, and Nikasil-coated cylinder well, all working to increase
overall performance. The KTM RC390’s engine sounds best when
revved high. An unadulterated response from its lightweight throttle
unleashes all 42.9bhp without hesitation. The well weighted clutch feels
just right while pushing the bike on the highway, and performs smoothly
when riding in city too. The close-ratio, six-speed transmission ensures
precise shifts in a one-down, five-up pattern; and the RC390 accelerates
so quickly that quickshifts and an open throttle will reward you with
high speeds in a jiffy.To its credit, the KTM RC390’s 36kg engine
displayed refined, smooth manners and stayed vibe-free throughout this
test.

25
INDUSTRY PROFILE

26
INDUSTRY PROFILE
KTM-Sportmotorcycle AG is an Austrian motorcycle manufacturer,
which was formed in 1992 but traces its foundation as early as in 1934.
In 1992 the company was spun off from its parent company KTM when
it ran into financial troubles. KTM was split into four companies, all of
which shared the same KTM branding, and in present have many more
subsidiaries with the same branding. However, KTM-Sportmotorcycle is
most commonly associated with the iconic KTM branding, because it
still continues the flagship business of its parent company.
KTM is known for it’s off road motorcycles though in recent years it has
expanded into street motorcycle production and also developing a sports
car. In 1934 an Austrian engineer Johann (Hans) Trunkenpolz set up
a metalworking and locksmith shop in Mattighofen. In 1937 he started
selling DKW motorcycles and Opel cars the following year. His shop
was known as Kraftfahrzeug Trunkenpolz Mattighofen but the name was
unregistered. During the Second World War his wife took care of the
business which grew mainly of diesel engine repairs.[4]
After the war, demand for repair works fell sharply and Trunkenpolz
started thinking about producing his own motorcycles. The prototype of
first motorcycle R100 was produced in 1951.All of the components of
the motorcycle were produced in house, except for the Rotaxengines
which were made by Fichtel& Sachs. In 1953,
businessman ErnstKronreif became a sizable shareholder of the
company which was then renamed and registered as Kronreif
&Trunkenpolz Mattighofen. KTM started serial production of R100 in
1954. With just 20 employees, motorcycles were built at the rate of three
per day.
The company’s first title was secured shortly thereafter with the 1954
Austrian 125 national championship. KTM first made an appearance at
the International Six Days Enduro in 1956 where EgonDornauer secured
a gold medal. Racing continued to be a testing ground for production
27
technology, but next in line was its first scooter, the Mirabell. It started
providing a factory team for the ISDE in ’64. As the company continued
to expand, the workforce totaled 400 in 1971, and forty years after it was
founded, KTM was offering 42 different models
KTM Sportmotorcycle GmbH started operation in 1992 and later took
over the sibling tooling division KTM Werkzeugbau. In 2004 KTM
Sportmotorcycle GmbH was renamed KTM-Sportmotorcycle AG. In the
same year it started production of Duke series of road motorcycles.
In 1995 KTM acquired Swedish motorcycle maker Husaberg AB.
In 1997 LC4 Supermoto and LC4 Adventure motorcycles are introduced
by KTMKTM-Sportmotorcycle AG is fully owned by KTM AG
(formerly known as KTM Power Sports AG). In November 2007, Bajaj
Auto Limited of India acquired 14.5% stake in KTM Power Sports AG
and increased their shareholding to 47% by 2012.
At present KTM AG is 51% owned by CROSS KraftFahrZeug Holding
GmbH, a subsidiary of CROSS Industries AG and 47% owned by Bajaj
Auto. CROSS Industries is founded by KTM's current CEO Stefan
Pierer.

28
 CHAPTER - II
REVIEW OF LITERATURE & THEORETICAL FRAMEWORK

29
 COMPARATIVE STUDY

Many comparisons has been made with the KTM bikes. But here we
normally consider one case. Here the comparisons is been made with the
BAJAJ bikes. The comparison is made by www.bikewala.com and
www.motoroids.com

BAJAJ PULSAR NS 200 Vs KTM DUKE 200

Table – 2.1

MODEL

Bajaj Pulsar NS 200 KTM DUKE 200

Ex-showroom Price 2015 –Ex-showroom Price 2015

–Rs-1,36,147/-
Rs-93,457/-

Max Power 23 bhp @ 9500 rpm 25 bhp @ 10000 rpm

Maximum 18 Nm @ 8000 rpm 19 Nm @ 8000 rpm
Torque
Fuel Carburettor, UCD 33 93457 Fuel injection system 136147
Delivery
System
30
 Fuel Petrol Petrol
injection
Petrol Independent spark control Digital Ignition
Spark Plugs 3 1
Gear 6 6
Fuel Tank 12 11
Capacity
(Litres)
Reserve 2 2.5
Fuel
Capacity
(Litres)
FuelEfficie 40 35
ncy Overall
(Kmpl)
Electric DC Ignition 238 w Alternator
System
Brake/Tail 0.3/3 W, LED LED tail lamp
Light

31
 BAJAJ PULSAR 220 DTS-FI Vs KTM DUKE 390
Table – 2.2

MODEL

Bajaj Pulsar 220 KTM DUKE 390

DTS-Fi
Ex-showroom Price Ex-showroom Price
2015 – 2015 –
Rs-88,200/- Rs-190,000/-

Engine Displacement 220 cc, 4-stroke, DTS- 373.2 cc, 1-cylinder 4-

(cc) i, Air & Oil cooled stroke engine, water-
cooled
Maximum Power 21.04 @ 8500 43 hp
Maximum Torque 19.12 @ 7000 35 Nm
(Nm)
Top speed (kmph) 140 160
Start System Electric start electric
Tank Capacity 15 L 11 L
(Reserve)
Acceleration 0-60 km 4.8 2.6
Mileage / Average 40-45 30-35
(kmpl)

32
 BAJAJ PULSAR RS 200 Vs KTM RC 390
Table – 2.3

MODEL

BAJAJ PULSAR RS200

KTM RC 390
Ex-showroom Price 2015 –
Ex-showroom Price 2015 –
Rs-1,25,000/-
Rs-2,27,000/-

Engine 373.2 cc 199.5 cc

Cc
No Of NA NA
Cylinder
Max 43 bhp @ 9000 rpm 24.2 bhp @ 9750 rpm
Power
Max 35 Nm @ 7000 rpm 18.6 Nm @ 8000 rpm
Torque
Valves 4 4
Per
Cylinder
Valves Fuel Injection System Fuel Injection
Per
Cylinder
33
Cooling Liquid Cooled Liquid Cooled
System
Fuel 9.5 L 13 L
Tank
Capacity
Reserve NA 2L
Fuel
Capacity
Mileage 25 kmpl 35 kmpl

34
 BAJAJ PULSAR RS 200 Vs KTM RC 200
Table – 2.4

MODEL

BAJAJ PULSAR RS200

KTM RC 200 Ex-showroom Price 2015 –
Ex-showroom Price 2015 – Rs-1,25,000/-
Rs-1,66,738/-

Engine 199.5cc Single-cylinder, 4- 199.5cc Liquid Cooled four

Type and stroke, spark-ignition engine, valve DTS-i Triple Spark
Displace liquid-cooled Engine with Fuel Injection
ment
Power 25.3 24.5
(PS)
Torque 19.2 18.6
(Nm)
Fuel Tank 13 10
Capacity
(Litre)
Front 300mm Disc brake with four- 300mm disc brake with Single
Brake pot brake caliper channel ABS

35
SALES MANAGEMENT- GENERAL INTRODUCTION

Sales management is a business discipline which is focused on the

practical application of sales technique and the management of a firm’s
sales operations. It is an important business function as net sales through
the sale of products and services and resulting profit drive most
commercial business. These are also typically the goals and performance
indicators of sales management.

Contents

1. Sales Planning

2. Recruitment of sales staff

3. Sales Reporting

Sales Planning: sales planning involve strategy, setting profit based

sales targets, quotes, sales forecasting, demand management and the
writing and execution of a sales plan. A sales plan is a strategic
document that outline the business targets, resources and sales activities.
It typically follows the lead of the marketing plan , strategic planning
and the business plan with more specific detail on how the objective can
be achieved through the actual sale of products and services.

36
RECRUITMENT OF SALES STAFF:
The three recruitment tasks used in sales management are
Job Analysis

Job Description

Job Qualifications

Job Analysis is performed to specify the certain tasks that a salesperson

would be responsible for on a daily basis. It should identify what
activities are deemed as being vital to the success of the company. Any
person associated with the sales organization or the human resources
department could carry out the analysis as well as an outside specialist.
The person that is responsible for completing a job analysis should have
an in-depth comprehension of the daily activities of the salespeople.
This job analysis is then written in an explicit manner as a job
description. The general information consists of:
1. Title of job
2. Organizational relationship
3. Types of products and services sold
4. Types of customers called on
5. Duties and responsibilities related to the job
6. Job demands.

37
Job Description, an effective job description will identify compensation
plans, size of workload, and the salespeople’s duties. It is also primarily
responsible for hiring tools such as application forms and psychological
tests. The most difficult part of this process would be the determination
of job qualifications. A reason for this difficulty is because hiring affects
a company’s competitive advantage in the market as well as the amount
of revenue. Additionally, there should be a set of hiring attributes that is
associated with each sales job that is within a company. If an individual
does not excel in their assigned territory, it could be due to external
factors relating to that person’s environment. Let it be noted that a
company should be careful not to submit to discrimination in regards to
employment.

Job Qualification, a number of qualifications (ethnic background, age,

etc.) cannot be used in the selection process of hiring.

SALES REPORTING:
The sales reporting includes the key performance indicators of the sales
force. The Key Performance Indicators indicate whether or not the sales
process is being operated effectively and achieves the results as set forth
in sales planning. It should enable the sales managers to take timely
corrective action deviate from projected values. It also allows senior
management to evaluate the sales manager. More "results related" than
"process related" are information regarding the sales funnel and the hit
rate.
Sales reporting can provide metrics for sales management
compensation. Rewarding the best managers without accurate and
reliable sales reports is not objective. Also, sales reports are made for
internal use for top management. If other divisions’ compensation plan
38
depends on final results, it is needed to present results of sales
department’s work to other departments. Finally, sales reports are
required for investors, partners and government, so the sales
management system should have advanced reporting capabilities to
satisfy the needs of different stakeholders.

SIGNIFICANCE
Sales management facilitates the directions of activities and functions
which are involved in the distribution of goods and services. According
to Philip Kotler, “Marketing management is the analysis, planning
implementation and control of programme designed to bring about
desired exchanges with target markets for the purpose of achieving
organizational objectives. It relies heavily on designing the
organizations’ offering in terms of the target markets needs and desires
and using effective pricing, communication and distribution to inform,
motivate and service the market.” Sales or marketing management is
concerned with the chalking out of a definite programme, after careful
analysis and forecasting of the market situations and the ultimate
execution of these plans to achieve the objectives of the organization.
Further their sales plans to a greater extent rest upon the requirements
and motives of the consumers in the market aimed at. To achieve this
objective the organization has to give heed to the right pricing, effective
advertising and sales promotion, discerning distribution and stimulating
the consumer’s through the best services. To sum up, marketing
management may be defined as the process of management of marketing
programmes for accomplishing organizational goals and objectives. It
involves planning, implementation and control of marketing
programmes or campaigns.

39
FUNCTIONS:
Sales research and planning.
Demand creation.
Sales costs and budget.
Price fixations.
Development of products.
Establishing sales territories.
Co-ordination of sales.

These functions differ from company to company according to their size

and the nature of their products.
IMPORTANCE OF SALES MANAGEMENT
Sales management has gained importance to meet increasing
competition and the need for improved methods of distribution to reduce
cost and to increase profits. Sales management today is the most
important function in a commercial and business enterprise. The
following are the other factors showing importance of the sales
management:
(i) Introduction of new products in the market.
(ii) Increasing the production of existing products.
(iii) Reducing cost of sales and distribution.
(iv) Export market.
(v) Development in the means and communication of transportation
within and outside the country.
(vi) Rise in per capita income and demand for more goods by the
consumers.

40
According to R A Jeffry , in his recent studies related to sales
management he establishes the point that, “Sales management is a
business discipline which is focused on the practical application
of sales techniques and the management of a firm's sales operations. It is
an important business function as net sales through the sale of products
and services and resulting profit drive most commercial business”.

According to Wufford & Murphy in their studies related to the sales

management, they establishes the following points:

Set Goals
Quantified sales objectives are necessary in any for-profit company.
Sales goals alert your sales staff to the revenue productivity expected.
Sales reps often are motivated by achievement and ego, and target
numbers enable your business to implement incentive pay programs
such as commissions and bonuses. It aligns your operations and support
staff with bottom-line results as well, because employees in those areas
understand the company-wide intention of achieving particular sales
milestones. Goals also serve as a rallying point to create cohesion.
Monitor Sales Performance
You can't effectively manage sales without constantly monitoring sales
performance. The only way to identify lags in productivity, and to
implements strategies to improve efficiency in converting sales, is to
know how you are doing. Numerous software programs allow you to
track sales from day-to-day, month-to-month and year to year. You can
break down overall performance to distinct divisions, business units and
products to figure out the high-performers and the laggards. Without
data tracking, it otherwise may take months to even realize you have a
problem with flat or declining sales

41
Coaching for Improvement
The point of monitoring sales performance is to establish reasonable
goals, but also to allow you to identify gaps in performance. Knowing
which business units, sales reps or product lines aren't getting the job
done enables price strategy and coaching efforts. Defining and training
staff on efficient operational and sales processes are vital to optimizing
revenue. When sales managers spend time with reps, for instance, they
can identify time-wasters and coach for improvement on techniques like
prospecting, presentations and closing. When your company is hitting
the mark on its numbers, the next step is to raise the bar and continue to
push for even greater productivity.

OBJECTIVES OF SALES MANAGEMENT

Sales management entails numerous objectives which are executed by
sales managers. There are mainly three such objectives
1. Sales Volume
2. Contribution to profits
3. Continuous Growth
The sales executives in this case are the ones who help implement these
objectives. However it is the top management who has to outline the
strategies to achieve these objectives of sales management. The top
management should provide products which are socially responsible and
are marketed in a manner which meets customers expectations and does
not break it. Thus sales management involves a strong interaction
between Sales, marketing and Top management.

42
SALES FORCE
Sales force management systems are information systems used in
CRM marketing and management that help automate some sales
and sales force management functions. They are often combined with
a marketing information system, in which case they are often called
customer relationship management systems .Sales force management
systems are essentially the same thing as sales force automation system.
A SFA, typically a part of a company’s customer relationship
management system, is a system that automatically records all the stages
in a sales process. SFA includes a contact management system which
tracks all contact that has been made with a given customer, the purpose
of the contact, and any follow up that may be needed. This ensures that
sales efforts are not duplicated, reducing the risk of irritating customers.
SFA also includes a sales lead tracking system, which lists potential
customers through paid phone lists, or customers of related products.
Other elements of an SFA system can include sales forecasting, order
management and product knowledge. More developed SFA systems
have features where customers can actually model the product to meet
their needs through online product building systems. This is becoming
popular in the automobile industry, where patrons can customize various
features such as color and interior features such as leather vs.
upholstered seats.
An integral part of any SFA system is company wide integration among
different departments. If SFA systems aren’t adopted and properly
integrated to all departments, there might be a lack of communication
which could result in different departments contacting the same
customer for the same purpose. In order to mitigate this risk, SFA must
be fully integrated in all departments that deal with customer service
management.

43
Making a dynamic sales force links strategy and operational actions that
can take place within a department. the SFA relies on objectives, plans,
budget, and control indicators under specific conditions.

DEMAND AND SUPPLY

In microeconomics, supply and demand is an economic
model of price determination in a market. It concludes that in
a competitive market, the unit price for a particular good, or other traded
item such as labor or liquid financial assets, will vary until it settles at a
point where the quantity demanded (at the current price) will equal the
quantity supplied (at the current price), resulting in an economic
equilibrium for price and quantity transacted.
The four basic laws of supply and demand are:
1. If demand increases (demand curve shifts to the right) and supply
remains unchanged, a shortage occurs, leading to a higher
equilibrium price.
2. If demand decreases (demand curve shifts to the left) and supply
remains unchanged, a surplus occurs, leading to a lower
equilibrium price.
3. If demand remains unchanged and supply increases (supply curve
shifts to the right), a surplus occurs, leading to a lower equilibrium
price.
4. If demand remains unchanged and supply decreases (supply curve
shifts to the left), a shortage occurs, leading to a higher equilibrium
price.

44
The price P of a product is determined by a balance between production
at each price (supply S) and the desires of those with purchasing
power at each price (demand D). The diagram shows a positive shift in
demand from D1 to D2, resulting in an increase in price (P) and quantity
sold (Q) of the product.
Although it is normal to regard the quantity demanded and the quantity
supplied as functions of the price of the goods, the standard graphical
representation, usually attributed to Alfred Marshall, has price on the
vertical axis and quantity on the horizontal axis, the opposite of the
standard convention for the representation of a mathematical function.
Since determinants of supply and demand other than the price of the
goods in question are not explicitly represented in the supply-demand
diagram, changes in the values of these variables are represented by
moving the supply and demand curves (often described as "shifts" in the

45
curves). By contrast, responses to changes in the price of the good are
represented as movements along unchanged supply and demand curves.

SALES FORECASTING

Sales forecasting is estimating what a company's future sales are likely

to be based on sales records as well as market research. The information
used in them must be well organized and may include information on the
competition and statistics that affect the businesses' customer base.
Companies try to forecast sales in hopes of identifying patterns so that
revenue and cash flow can be maximized.
Before the forecasting process begins, marketing, sales, or other
managers should determine how far ahead the estimate should be done.
Short-term forecasting is a maximum of three months and is often
effective for analyzing budgets and markets. Intermediate forecasting is
between a period of three months and two years and may be used for
schedules, inventory and production. Long-term forecasting is for a
minimum of two years and is good for dealing with growth into new
markets or new products. Sales forecasts should be conducted regularly
and all results need to be measured so that future methods can be
adjusted if necessary.
Basically, sales forecasting is analyzing all parts of a business from total
inventory to the strengths and weaknesses of salespeople. Managers
must think about changes in customer sales or other changes that could
affect the estimated figures. They must be competitive when assessing
the competition and how they can surpass others in the marketplace to
better meet the needs of the target market.

46
SALES FORCASTING METHODS:

JURY OF EXECUTIVE OPINION

This technique is part of a set of techniques that are useful in situations
where past data do not exist, causal relationships have not been
identified, or some major change has occured in the forecasting context
which is not accounted for by other techniques (such as a Gulf War,
trade agreement, etc.). Evidence as to the validity of using these methods
by themselves is mixed, although using them correctly can provide very
good forecasts, especially in uncertain environments. The objective of
these techniques is to provide logical, unbiased, and systematic
quantitative estimates.Have "forecast meetings", perhaps beginning with
initial estimates of the forecast variables. Discussion ends when
consensus is reached.

POLL OF SALES FORCE OPINION

A method commonly used by companies for short-term forecasts is to

take advantage of their field staff's intimate knowledge of customers'
needs and market conditions by asking them to forecast the company's
sales for their respective areas for the coming season or year. To
enhance accuracy of the forecast and facilitate its preparation field staff
should be provided with the following background material:
 information on the overall market situation, such as changes in
government policies impinging on fertilizer consumption, changes
in competitors’ position, imports and overall availability. Staff at
field level are often unaware of developments at the macro level
and, without such knowledge, become unduly influenced by local
conditions leading to over-pessimistic or over-optimistic estimates;

47
  sales, by dealer, for the previous three years;
 the format in which the forecast is required. (see Annex III for
specimen format).

The past record of dealers enables sales staff to classify the outlets as
follows:

 dealers active in previous season or year but now declining;

 dealers with promise of higher sales in coming season or year;
 dealers not presently carrying the company's products but who are
potential contributors to increased sales.

If incentives are extended to field staff linked to their reaching and

exceeding sales quotas, it is to be expected that their forecasts will be on
the low side to make attainment of quotas easier. An adjustment for this
has to be made to bring the forecast more in line with immediate market
potential. An important advantage of this method is that it creates a
sense of commitment among the field staff to attain sales targets. It also
provides enough information for compiling a detailed breakdown of
expected sales by product, area, dealer outlet and time.

PROJECTION OF PAST SALES

The projection of past sale method of sales forecasting taking a variety
of forms.
The simplest is to set the sales forecast for the coming year at the same
figure as the current years actual sales, or the forecast maybe made by
adding a set percentage to last years sale, or a moving average of the sale

48
figures for several past year. For instance, if it is assumed that there will
be a same percentage sales increasing next year as this year, the forecast
might utilize a naïve model projection such as

Next year sales = this year sales× this year sale

Last year sale

DESCRIPTIVE RESEARCH
The term descriptive research refers to the type of research question,
design, & data analysis that will be applied to a given topic. Descriptive
statistics tell what is, while inferential statistics try to determine cause
and effect relationship.
Three main purposes of research are to:-
 Describe
 Explain
 Validate findings.
TREND ANALYSIS
Trend analysis is a statistical technique used to forecast the value of a variable in
future based on different ways of calculations. The basic equation for the trend
analysis is given by
Trend equation is y = a+bx , where,
a = Ʃy/n ;
b = Ʃxy/Ʃ𝑥 2

49
CORRELATION ANALYSIS
Correlation analysis is a statistical method to find the relationship of one variable
over another variable. The different methods for calculating the value of
correlation is given by :-
1. Karl Pearson’s method of correlation
2. Spearman’s rank correlation method
3. Concurrent deviation method

Here in this project study we adopted Karl Pearson’s method

of correlation and its equation is given by
r= nƩdxdy – (Ʃdx)(Ʃdy)

√nƩ𝑑2 x - (Ʃ𝑑𝑥)2 × √nƩ𝑑2 𝑦 - (Ʃ𝑑𝑦)2

BAR DIAGRAMS AND PIE CHARTS

Bar diagrams and pie charts are basically used for representing the data in pictorial
form. Simply they are used for diagrammatical representation of data in data
analyses section.
PERCENTAGE METHOD
Percentage method is a mathematical method used to find out the percentage.
Basically percentage method is used for the following applications.
1. To find out the percentage
2. For comparison
3. For evaluation & estimation
4. In the case of enumeration purposes
5. In the case of data analysis & interpretations
SAMPLE SIZE & SAMPLING
Sample size means the number of units we selected from a population.
The process of selecting a sample from a population is called sampling.

50
SURVEY OF CUSTOMERS BUYING PLAN
Industrial marketers use this approach more than consumer goods
marketers, because it is the easiest to use where the potential market
consists of small numbers of customers and prospects, substantial sales
are made to individual accounts, the manufacturer sells direct to users,
and costumers are concentrated in a few geographical areas. In such
instances, it is relatively inexpensive to survey a sample of customers
and prospects to obtain their estimated requirements for the product, and
to project the results to obtain a sale forecast. Few companies base
forecast exclusively on a survey of customers buying plans. Even though
the survey of customer buying plans is generally an unsophisticated
survey and is the selection of respondents is by probability sampling.

51
 CHAPTER – III
DATA ANALYSIS & INTERPRETATIONS

52
DATA ANALYSIS
1. To identify the sales volume of different products

Table – 3.1
PRODUCT : KTM DUKE 390
PRICE/UNIT: Rs. 2, 23,956/-
Month Number Of units Sold Sales Volume
January , 2015 1 2,23,956
February , 2015 0 ---------
March , 2015 1 2,23,956
April , 2015 0 ----------
May , 2015 4 8,95,824
June , 2015 0 -----------
July , 2015 3 6,71,868
August , 2015 1 2,23,956
September , 2015 1 2,23,956
October , 2015 1 2,23,956
TOTAL 12 26,87,472

53
 Fig - 3.1

4.5
4
NUMBER OF units SOLD

3.5
3
2.5
2
1.5
1
0.5
0

MONTH

INTERPRETATION
1. The sale in the month of January is just rising up because it was the
starting period after launching a new showroom in Kottayam. And also
this constant level can be seen in March too.
2. No sale has occurred in the month of February, April and June; it’s
because of the market fluctuations and the trend.
3. But there can be seen a hike in the sale volume in the month of May
and July. It might be due to the influence of the existing customers and
also the increase in awareness of people about the product.

54
 4. But there is no improvement and decline in the sale of the product
during the months August, September and October. It remains stable just
like the inception period (January).
5. From the overall observation, this product needs some promotion
strategies for the improvement in the sale of the product which would
results a good sale in the deficient month.

Table -3.2
PRODUCT: KTM DUKE 200
PRICE/UNIT: Rs. 1, 64,194/-
Month Number Of units Sales Volume
Sold
January,2015 4 6,56,776
February,2015 5 8,20,970
March,2015 4 6,56,776
April,2015 5 8,20,970
May,2015 4 6,56,776
June,2015 8 13,13,552
July,2015 3 4,92,582
August,2015 8 13,13,552
September,2015 5 8,20,970
October,2015 1 1,64,194
TOTAL 47 77,17,118

55
 Fig - 3.2

9
8
NUMBER OF units SOLD

7
6
5
4
3
2
1
0

MONTH

INTERPRETATION
1. From January 2015 till May 2015, the sale of the product has resulted
in a good extend.

2. There has been an increase in the sale in the month of June and
August which really shows the popularity of this product .
3. From the overall observation if some sort of improvement strategies
is done in the promotion of the product, this would result in good sale as
it has been expected.

56
 Table - 3.3

PRODUCT: KTM RC 390

PRICE/UNIT: Rs.2, 66,408 /-

Month Number Of units Sales Volume

Sold
January,2015 0 ---------
February,2015 1 2,66,408
March,2015 1 2,66,408
April,2015 2 5,32,816
May,2015 0 ---------
June,2015 1 2,66,408
July,2015 2 5,32,816
August,2015 2 5,32,816
September,2015 0 ---------
October,2015 0 ---------
TOTAL 9 23,97,672

57
 Fig – 3.3

2.5
NUMBER OF units SOLD

1.5

0.5

MONTH

INTERPRETATION
1. The sale in the month of January at the starting itself is nil.

2. There has been a constant sale in the month of February and

March.

3. There has been a huge increase in the month of April, July, and
August. Definitely this might be due to the influence of style, trend
and existing customers.

58
4. But a soon decline can be seen in the month of September and
October.

5. But in over all observation we can see that there has been decline
in the sale of this product when we compare with KTM DUKE
390.

Table - 3.4

PRODUCT: KTM RC 200

PRICE/UNIT-1,92,992/-

Month Number Of units Sales Volume

Sold
January,2015 4 7,71,968
February,2015 4 7,71,968
March,2015 4 7,71,968
April,2015 4 7,71,968
May,2015 4 7,71,968
June,2015 7 13,50,944
July,2015 5 9,64,960
August,2015 1 1,92,992
September,2015 4 7,71,968
October,2015 1 1,92,992
TOTAL 38 73,33,696

59
 Fig – 3.4

8
7
NUMBER OF units SOLD

6
5
4
3
2
1
0

MONTH

INTERPRETATION

1. For the first five months a constant sale of the product can be
seen.
2. In the month of June there can be seen a hike in the sale of
product , it definitely might be due to trend or style and also
customer influence.
3. In the month of August and October, a decline can be seen in
the sale of the product.

4. But in an overall aspect the sale of the product is much

comparatively lower as we compare with the KTM DUKE 200.

60
 2.To measure the relationship between the price and demand of
customers of various products of KTM

Table - 3.5
Period: 1st January 2015 – 31st October 2015

Product with price Number dx=x-A dy=y-B dxdy 𝑑2 𝑥 𝑑2 y

details of units
(x) sold (y)
KTM DUKE 390 12 30,964 -26 -8,05,064 95,87,69,296 676
:-Price=2,23,956

KTM DUKE 200 47 -28,798 9 -2,59,182 82,93,24,804 81

:-Price=1,64,194

KTM RC 200 38 0 0 0 0 0
:-Price=1,92,992

KTM RC 390 9 73,416 -29 -21,29,064 5,38,99,09,056 841

:-Price=2,66,408

TOTAL 106 75,582 -46 -31,93,310 7,17,80,03,156 1598

Where A and B:
A= Assumed mean of x = 1, 92,992
B= Assumed mean of y = 38

61
Karl Pearson’s Coefficient Of Correlation

r= nƩdxdy – (Ʃdx)(Ʃdy)

√nƩ𝑑2 x - (Ʃ𝑑𝑥)2 × √nƩ𝑑2 𝑦 - (Ʃ𝑑𝑦)2

= 4×-31,93,310 – (75,582)×(-46)
√4×7,17,80,03,156 -5,71,26,38,724 × √4×1598- 2116

= -1,27,73,240 + 34,76,772
1,51,655.44 × 65.391
-92,96,468
= 99,16,900.88

= -0.94

INTERPRETATION

There is a negative correlation exist between price and demand of

KTM products.
ie ., the price and demand moves in opposite direction,
so that an increase in the value of price results into a decrease in
the value of demand or vice- versa.

62
3. To forecast the sales volume of different products of KTM

PRODUCT: - KTM DUKE 390

Table - 3.6
Month Number of x=t-5 xy 𝑥2
units(y)
1 1 -4 -4 16
2 0 -3 0 9
3 1 -2 -2 4
4 0 -1 0 1
5 4 0 0 0
6 0 1 0 1
7 3 2 6 4
8 1 3 3 9
9 1 4 4 16
10 1 5 5 25
TOTAL 12 5 12 85

Trend equation is y = a + bx , where,

a = Ʃy/n
= 12/10
=1.2

b = Ʃxy/Ʃ𝑥 2
= 12/85
= 0.14

63
Trend Equation is
y = 1.2 + 0.14x
Number of units of KTM DUKE 390 that will be sold for the month 11
is:
y (11) = 1.2 + 0.14x
= 1.2 + 0.14(t-5)
= 1.2 + 0.14(11-5)
= 1.2 + 0.14(6)
= 1.2 + 0.84
= 2.04 = 2 (approx.)

Number of units of KTM DUKE 390 that will be sold for the month 12
is:

y (12) =1.2 + 0.14x

= 1.2 + 0.14(t-5)
=1.2 + 0.14(12-5)
=1.2 + 0.98
= 2.18 = 2 (approx.)

64
The different trend values of KTM DUKE 390 is given by
X Trend Value y(x)= 1.2 + 0.14x
-4 0.64
-3 0.78
-2 0.92
-1 1.06
0 1.2
1 1.34
2 1.48
3 1.62
4 1.76
5 1.90

Fig 3.6

2
1.8
Trend Value

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

MONTH

65
PRODUCT: - KTM DUKE 200
Table - 3.7
Number of x=t-5 xy 𝑥2
Month units (y)
1 4 -4 -16 16
2 5 -3 -15 9
3 4 -2 -8 4
4 5 -1 -5 1
5 4 0 0 0
6 8 1 8 1
7 3 2 6 4
8 8 3 24 9
9 5 4 20 16
10 1 5 5 25
TOTAL 47 5 19 85

Trend equation is y = a + bx , where;

a = Ʃy/n
= 47/10
= 4.7
b = Ʃxy/Ʃ𝑥 2
= 19/85
= 0.22

66
Trend Equation is
y = 4.7 + 0.22x
Number of units of KTM DUKE 200 that will be sold for the month 11
is:

y (11) = 4.7 + 0.22x

= 4.7 + 0.22(t-5)
= 4.7 + 0.22(6)
= 6.02 = 6 (approx.)
Number of units of KTM DUKE 200 that will be sold for the month 12
is
y(12) = 4.7 + 0.22(x)
= 4.7 + 0.22(t-5)
= 4.7 + 0.22(7)
= 6.24 = 6 (approx.)
The different trend values of KTM DUKE 200 is given by
x Trend Value y(x)= 4.7 + 0.22x
-4 3.82
-3 4.04
-2 4.26
-1 4.48
0 4.7
1 4.92
2 5.14
3 5.36
4 5.58
5 5.80

67
 Fig - 3.7
7
6
Trend Value 5
4
3
2
1
0

MONTH

Product: - KTM RC 390

Table 3.8
Number of x=t-5 xy 𝑥2
Month units(y)
1 0 -4 0 16
2 1 -3 -3 9
3 1 -2 -2 4
4 2 -1 -2 1
5 0 0 0 0
6 1 1 1 1
7 2 2 4 4
8 2 3 6 9
9 0 4 0 16
10 0 5 0 25
TOTAL 9 5 4 85

68
Trend equation is y = a + bx , where
a = Ʃy/n
= 9/10
= 0.90
b = Ʃxy/Ʃ𝑥 2
= 4/85
=0.047
Trend Equation is
y = 0.90+0.047x
Number of units of KTM DUKE RC 390 that will be sold for the month
11 is:
y (11) = 0.90 + 0.047x
= 0.90 + 0.047(t-5)
= 0.90 + 0.047(6)
= 1.18 = 1(approx.)
Number of units of KTM DUKE RC 390 that will be sold for the month
12 is:

y (12) = 0.90 + 0.047x

= 0.90 + 0.047(t-5)
= 0.90 + 0.047(7)
= 1.229 = 1 (approx.)

69
The different trend values of KTM DUKE RC 390 is given by

X Trend Value y(x)= 0.90 + 0.047x

-4 0.71
-3 0.76
-2 0.81
-1 0.85
0 0.90
1 0.95
2 0.99
3 1.04
4 1.09
5 1.14

Fig – 3.8
1.2

1
Trend Value

0.8

0.6

0.4

0.2

MONTH

70
Product: - KTM RC 200
Table – 3.9
Number of x=t-5 xy 𝑥2
Month units(y)
1 4 -4 -16 16
2 4 -3 -12 9
3 4 -2 -8 4
4 4 -1 -4 1
5 4 0 0 0
6 7 1 7 1
7 5 2 10 4
8 1 3 3 9
9 4 4 16 16
10 1 5 5 25
TOTAL 38 5 1 85

Trend equation is y = a + bx
a = Ʃy/n
= 38/10
= 3.8
b = Ʃxy/Ʃ𝑥 2
= 1/85
= 0.011
Trend Equation is
y = 3.8 + 0.011x

71
Number of units of KTM DUKE RC 200 that will be sold for the month
11 is:

Y(11) = 3.8 + 0.011x

= 3.8 + 0.011(t-5)
= 3.8 + 0.011×6
= 3.87 = 4 (approx.)
Number of units of KTM DUKE RC 200 that will be sold for the month
12 is:

Y(12) = 3.8+0.011x
= 3.8+0.011(t-5)
= 3.8+0.011×7
= 3.88 = 4 (approx.)

The different trend values of KTM DUKE RC 200 is given by

X Trend Value y(x)= 3.8+0.011x
-4 3.76
-3 3.77
-2 3.78
-1 3.79
0 3.8
1 3.81
2 3.82
3 3.83
4 3.84
5 3.85

72
 Fig – 3.9
3.86
3.84

Trend Value
3.82
3.8
3.78
3.76
3.74
3.72
3.7

MONTH

INTERPRETATIONS
From the trend analysis related to the products of KTM , we can
interpret the following points & the same will be summarized in the
following table :

Name of the product Number of units to be Number of units to be

sold in 11th month sold in 12th month
KTM Duke 390 2 2

KTM Duke 200 6 6

KTM RC 390 1 1

KTM RC 200 4 4

73
4. To study the growth pattern of KTM KODIMATHA
KOTTAYAM from its inception onwards

Question No 1:
Are you aware of the brand KTM?
Table 3.10
Criteria Number of Percentage
respondents
Yes 48 96%
No 2 4%
Total 50 100%

Fig 3.10

No
4%

Yes
96%

74
INTERPRETATIONS:
1. Almost all the people do agree with the statement that they are
familiar with the product.
2. Only few of them are unaware of the products.

Question No 2:
Through which source you came to know about this brand?
Table 3.11

Criteria Number of percentage

respondents
Advertisement 15 30%
Newspaper and 10 20%
magazine
Existing customer 13 26%
Journals 1 2%
Reference groups 4 8%
Opinion leader 2 4%
All the above 5 10%
Total 50 100%

75
 Fig 3.11

opinion leader
4%
all the above
reference group 10% advertisement
8%
30%
journals
2%

existing customer
26% newspaper and
magazine
20%

INTERPRETATIONS
1. The people are aware of this brand mostly through advertisement
.It really shows how much advertisement plays a major role in the
awareness of product.

2. Newspaper & magazine has also led a major part in the awareness
of the product. But at the same time the awareness of the product
through journals is very less.

3. And it’s a most interesting factor that the product has gain its
awareness through its existing customers.
76
Question No 3:
When you buy a new motorcycle, will you prefer the brand KTM?
Table 3.12

Criteria Number of respondents Percentage

Yes 44 88%
No 6 12%
Total 50 100%

Fig – 3.12

No
12%

Yes
88%

77
INTERPRETATIONS

1. Most of the people said that they would prefer this brand definitely
when they are going to buy a new motorcycle.

2. But small amount of people are not interested in purchasing the

product. It might be due to their personal reasons.

Question No 4:
Why do you prefer this product/ brand?
Table 3.13

Criteria Number of percentage

respondents
Horse power & 22 44%
torque
Mileage 3 6%
Style 10 20%
Brake & suspension 8 16%
Other specifications 4 8%
All the above 3 6%
TOTAL 50 100%

78
 Fig 3.13
all the above
other specification 6%
8%

brake & suspension horse power &

16% torque
44%

style
20% mileage
6%

INTERPRETATIONS

1. The product has been well know and preferred by most people
because of its horse power and torque.

2. And the main factor style has also played a major role in it.

3. But the mileage factor is quite less.

79
Question No 5:
If you are an existing customer, are you satisfied with the product?
Table 3.14

Criteria Number of Percentage

respondents
Yes 33 66%
No 17 34%
Total 50 100%

Fig 3.14

No
34%

Yes
66%

80
INTERPRETATIONS

1. Almost 66% of the people suggest that they are satisfied with the
product. It might be definitely due to the services which is been
provided by the showroom and also the product has definitely met
the requirements of the customer.

2. Some of the people often do not support the product it might be

due to their personal reasons or experience they had with the
product.

Question No 6:
If you are an existing customer, will you recommend this product to
other?
Table 3.15

Criteria Number of percentage

respondents
Yes 34 68%
No 16 32%
Total 50 100%

81
 Fig 3.15

No
32%

Yes
68%

INTERPRETATIONS

1. Definitely most of the people would like to suggest this product to

other its because they have found speciality in the product which
would have influenced them and motivates them to suggest others.

2. But at the same time 32% of the people would not like to suggest
this product its because they might have personal experience which
de-motivates them to suggest this product to others.

82
 Question No 7:
How to do you think that this product compares with the other
brands available in the market in terms of meeting your
requirements and need?

Table 3.16

Criteria Number of percentage

respondents
I don’t think there is much difference 19 38%
in this new product and the one which I
am using
This product appears to have huge 22 44%
improvement as compared to the
product I am currently using
None of above 9 18%
Total 50 100%

83
 Fig 3.16
I don’t think there
is much difference
in this new product
and the one which I
none of the above
am using
18%
38%

this product
appears to
have a huge
improveme
nt as
compared
to the
product I
am
currently…

INTERPRETATIONS

1. Almost 44% of people are satisfied with the product and they also
recommend that they found something special in this product
,when its been compared with the product they are currently using.
.
2. And also at the same time some people often suggest that they are
not at all satisfied with the product and also they have not found
anything attractive with regard to this product.

84
Question No 8:
Please select the statement that describes the need of your product.
Table 3.17
Criteria Number of Percentage
respondents
I need it badly 10 20%
I need this product 21 42%
I don’t really need 12 24%
this product but it
might come handy
I don’t need this 7 14%
product at all
Total 50 100%

Fig 3.17

I don’t need this I need it badly

product at all 20%
14%
I don’t really need
this product but it
might come handy
24%
I need this product
42%

85
INTERPRETATIONS

1. Most of the people said that they need the product.

2. And only less people said that they don’t need the product .but at
the same time some people are willing to buy if it becomes handy.

Question No 9:
This product according to you
Table 3.18
Criteria Number of percentage
respondents
Is fit to be launched 20 40%
Need some changes 20 40%
and modifications
before launching
Is completely useless 4 8%
and no change will
make it worth buying
I don’t know anything 6 12%
about it
Total 50 100%

86
 Fig 3.18

I don’t know
Is completely anything about it
useless and no 12%
change will make it
worth buying
8%
Is fit to be
launched
40%

need some changes

and modifications
before launching
40%

INTERPRETATIONS

1. Most of the people said that the product is fit to be launched, but at
the same time people also suggest that some modifications have to
be made before launching of the product.
2. Some of them also suggest that the product is not fit to be launched
, it might be due to external factors or personal needs.

87
Question No 10:
To what extend are you familiar with KTM
Table 3.19
Criteria Number of percentage
respondents
Very well I have used 29 58%
it before
Heard of but I have 19 38%
never use it
I don’t know it at all 2 4%
Total 50 100%

Fig 3.19

I don’t know it at
all
4%

heared of it but I
have never use it
38% very well I have
used it before
58%

88
INTERPRETATIONS

1. Most of the people say that they have used the product.

2. Some of them have heard about the product but have never used it
before.

Question No 11:
Would you refuse the international brands?
Table 3.20

Criteria Number of percentage

respondents
Yes 22 44%
No 28 56%
Total 50 100%

89
 Fig 3.20

Yes
44%

No
56%

INTERPRETATIONS

1. Most of the people refuse to use the international product,its

because they are not ready to try the international brands.

2. Some of them are willing to buy this product. And also they are
ready to give a try to the international brand.

90
Question No 12
Compare to the brand abroad, what advantage do you think the
local brands have?

Table 3.21
Criteria Number of percentage
respondents
Better effect 17 34%
Lower price 24 48%
Meet the demand 4 8%
Promoted by 1 2%
celebrities
All the above 4 8%
Total 50 100%

Fig 3.21
promoted by all the above
celebrities 8%
2%
meet the demand
8%
better effect
34%

lower price
48%

91
INTERPRETATIONS
1. Most the people said that this product has been popularized by its
lower price.

2. Some of them also suggest that the product is getting the sales
through celebrity promotions is least compared to other criterions.

92
 CHAPTER – IV
SUMMARY, FINDINGS & RECOMMENDATIONS

93
 SUMMARY

KTM AG is a bike showroom which was inaugurated in December,

2014 in Kodimatha , Kottayam. The company usually do the sales of 4
varieties of bikes, KTM DUKE 200, KTM RC 200, KTM DUKE 390,
KTM RC 390. The main plant is in Mumbai. The manufacturing
process takes place over here in Mumbai and it’s been delivered to
different showroom in India according to the order which has been
placed. KTM bikes are really considered to be as the sport bike. And
hence it is attracted by people because of its style and shape.
This product is well known for his style, shape, performance,
service which is been provided by the company. Hence it has gain a
huge popularity among the youngsters. And these bikes are normally
famous for bike rallies, races etc.
“A study on Sales Management in KTM AG Kodimatha,
Kottayam” is a study with a basic objective of measuring the sales of
the KTM products of the company. This study has been done on the
basis of information with regard to sale of the product from the time
soon after inception (January to October).
In this project we have taken 50 as sample size. And the
following study has been done through which it has helped in Data
Analysis. The trend graphs, pie charts have also been mentioned in order
to describe the actual sale of the product.
Finally, we came to know that its very necessary to know the
background/genesis of the topic/subject first, so as to understand the
requirement/problem at hand and then consider its present status and
future prospects so as to arrive at a suggested set of
solution/recommendations/suggestion so vital.

94
 FINDINGS

1. It can be seen that the awareness of the product among the people is
too much high(96%).
2. Most of the people suggest that they would refer this product to others
because of their choice.
3. Majority of people said that they would prefer this product /brand
because of its horse power and torque.
4. Some of them suggest that there is not much difference with the
product they are currently using.
5. Some of them often suggest that this product need some more
modifications before its launch.
6. Almost 56 % of people said that they would refuse to use the
international brand. It might be of the service cost and also the price of
the product.
7. The product has less awareness by celebrities.
8. From the analyzing table it is clear that the sale of the products in the
few months are constant and in some months it shows decline.
9. Almost some people suggest that they are not aware of its service cost
and its maintenance.
10. Awareness through journals, reference groups, and opinion leaders
about the KTM product is low.
11. People would like to purchase the product and also to give a try in
international brand but some external as well as the personal factors de-
motivates them from buying it.

95
12. The KTM bikes has gain its image among the youngsters but not as
whole.
13.The number of units of KTM products that would be sold in the
month 11 & also in the month 12 should be in a constant level.
14. There is a negative correlation exist between price and demand of
KTM products.The price and demand moves in opposite direction, so
that an increase in the value of price results into a decrease in the value
of demand or vice- versa.
15. From its inception onwards KTM AG Kodimatha, Kottayam is going
in a continuous growth level in terms of sales volume , marketing
strategies , promotional applications etc.
16.From the trend analysis the forecasted value of units to be sold in the
11th & 12th month is high in the case of KTM Duke 200 & low in the
case of KTM RC 390.

96
 RECOMMMENDATIONS

From the project study we can get into a conclusion that the company is
a bit far from making its products awareness among the people, but often
do trying to maintain its popularity through several programmes. For the
sake of its development, a few recommendations are as follows:-

 The awareness of the product should be made among the

customers via newspapers , journals and articles.

 Open discussion must be conducted as an open air programme in

order to make people aware of its maintenance cost and
performance of the product.

 Promotion through celebrities should be made essential, today in

this modern era celebrities play a major role in influencing the
customers.

 In order to ensure a constant or a hike level of sale , the company

should provide some offers in the product such as festival offers,
discount in service maintenance, free service check up etc.

 The company officials itself should come in to the open air

discussion and should deal with the new customers and should try
to motivate them in purchasing the product.

97
 The company should offer some surprise rewards for its
customers so that this could also play a major role for satisfying
the customers and also it would result in popularity of the product
through existing customers.

 The company should often conduct some rallies and sport events to
make this product awareness and to attract the customers.

 The company should introduce some important marketing

strategies to improve the sale of KTM RC 390 because the
forecasted value of KTM RC 390 is too much low compared to
the forecasted value of other KTM products.

 The company should maintain a positive correlation between the

price and demand of the KTM products .

 From the project study we can suggest that the company try to
build its brand image not only among the youngsters but also
among the whole class of customers

 The company should introduce the KTM products with some sort
of modifications which is higher than the specifications of other
company products.

 The company should introduce their products and its price will be
affordable for the customers because from the study we can see
that most of the people were refused to use the international
brands.

98
 CHAPTER – V
SWOT ANALYSIS

99
 SWOT ANALYSIS
STRENGTHS

1. Ability to understand customer’s needs and wants.

2. The company is having too many effective promotional activities.

3. Recognized and established brand name.

4. The company is having well after sales service.

5. Technology up gradation is always happening in the company

products.

6. Company’s name is synonymous with resale value is high.

7. The products are attractive in nature.

8. Reputation and brand image of the company.

9. Capable marketing personnel.

10. Efficient employer- employee relationship.

WEAKNESS

1. KTM AG , Kodimatha , Kottayam started in the year 2014. So the

company suffers lack of leadership in the market.

2. Industries are importing cheaper raw materials for the production of

two wheelers.

3. High overhead cost due to the large size and hike in petrol price.

4. Cost and availability of raw material is affected by monsoon

5. Difficult to find the potential customers for the DUKE products.

100
OPPORTUNITIES

1.Expansion of target market including Global expansion Opportunities.

2. Relatively low rate of interest and the discount of easily available

prices offered by the dealers and manufacturers lead to the increasing
large market for the high performance.

3. Demand for two-wheeler vehicles segment which is increasing with

the up liftmen of the lifestyle of people

4. Expanding its distribution areas

5. Growing demand of its products

THREATS

1. Introduction of the new models of the competitors.

2. Hike in petrol prices

3. Pollution norms created by the authorities is high.

4. Probable entry multinational companies

5. Upward revision of crude oil price increasing the price of ingredients.

101
APPENDIX

102
 ANNEXURE I : QUESTIONNAIRE
We, students of Good Shepherd College, Kottayam currently doing a
project work entitled “A STUDY ON SALES MANAGEMENT IN
KTM AG , KODIMATHA , KOTTAYAM” as a part of our academic
curriculum (B.Com Model II Finance & Taxation).We request you to
participate in our study and also we assure you that the data generated
shall be kept confidential.
Name :
Age :
Gender :
Mobile No :
1.Are you aware of the brand KTM?

Yes No
If Yes ,
2.Through which source you came to know about this brand?

Advertisement Existing Customer

Newspaper&Magazines Journals

Reference Groups Opinion Leaders

3.When you buy a new motorcycle, will you prefer the brand KTM?

Yes NO

103
4.Why do you prefer this product/brand?

Horse Power &Torque Mileage

Style Brake & Suspension

Other Specifications all the above

5.If you are an existing customer, Are you satisfied with the product?

Yes No

6.If you are an existing customer, Will you recommend this product to
others?
Yes No
7. How do you think that this product compares with the other brands
available in the market in terms of meeting your requirements and need?
I don’t think there is much difference in this new product and the
one which I am currently using.
This product appears to have a huge improvement as compared to
the product I am currently using.
None of the above

104
8.Please select the statement that describes the need of your product.

I need it badly I need this product

I don’t really need this product but it might come handy

I don’t need this product at all

9.This product according to you :

Is fit to be launched

Need some changes and modifications before launching

Is completely useless and no change will make it worth buying

I don’t know anything about it

10.To what extent are you familiar with KTM?

Very well I have used it before

Heard of it but never use it

I don’t know it at all

11.Would you refuse the international brands?

Yes NO

105
12.Compare to the brand abroad, what advantages do you think the local
brands have?

Better effect Lower price

Meet the demand better Promoted by

Celebrities

All the above

106
ANNEXURE II : SCREEN SHOT OF THE COMPANY WEBSITE , http://www.ktm.com

107
ANNEXURE III: COMPANY BROCHURE

108
109
ANNEXURE IV : NOTICES

110
 BIBLIOGRAPHY

 Marketing Management, R.S.N Pillai, Bhagavathi.S.Chand &

Company Ltd, New Delhi, 2010, 2nd Edition, 545 page.

 Marketing Management, V.S Ramaswamy, S. Namakumari, Rajiv

Beri for Macmillan Publishers India Ltd, New Delhi, 1990, 4th
Edition, 831 pages.

 Research Methodology, C.R Kothari, New Age International

Publishers, New Delhi,2008, 8th Edition,389 pages.

 Business Research Methods, William G.Zikmund ,Dryden

Publishers, New Delhi, 2012,6th Edition,439 pages.

 Marketing Research, C. Kinneer, Vikas Publications, 2nd edition.

 Quantitative Techniques for Business Research , P.M.Thomas &

Tony Mathew, Prathiba Publications.

 Statistics For Research, L R Potti, Yamuna Publications,

Thiruvananthapuram ,2nd Edition, 82 pages.

 “Off –the-Shelf Racers; KTM’s Supermoto three-pack” American

Motorcyclist (American Motorcyclist Association) 58 (4), April
2004 : 20, ISSN 0277 – 9358,retrieved 2011 – 05 – 04.

111
 Duke, Olly (August 1994), “KTM Duke: supermotard styling
strikes again”, Cycle World:62.

 “A Short Background Of KTM Bicycles” Retrievedm2013 -06-

23.

 “OVERTAKE INDIA” , A Malayalam Magazine, Volume 6,

Number 4.

 “SMART DRIVE” , A Malayalam Magazine,Volume 4,Number 4

 “Fast Track” , Volume 8 , Number 2

112
 WEBLIOGRAPHY

 http://www.ktm.com/in/

 http://www. ktm.com/naked-bike/

 http://www.autoevolution.com

 http://www.roadandtrail.com

 http://www.motoroids.com

 http://www.bikewala.com

 http://www.wikipedia.com/ktm

 http://www.google.com/ktm

 http://www.bikeportal.in/KTM-Duke

 http://www.overtakeonline.in

 http://www.smartdriveonline.in

 http://www.manoramaonline.com/fasttrack.html

 http://www.indianmagazinesonnet.com/fasttrack
113
114