Automobile Industry in Bangldesh Essay

1. 1 Introduction flop off days education is not just confined to books and classrooms. Internship is such a program that helps to rise the take up intercourseledge and understanding of the courses and to enforce them in a practical written report. Internship training gives this opportunity to be enmeshed in an organization where it is viable to throw off an experience of the real business valet and to see incompatible practical aspects of education. Marketing surgical incision of Chittagong University is committed to produce merchandiseing professionals for the grocery store who go forthing not wholly benefit the society as a whole solely also make path of a better future for the next generation.Internship program is a step towards fulfill this commitment by enceinte the students an opportunity to give out ready for the real world before they enter into it. 1. 2 look into bulge out This research is a destiny of the internship program for my MBA program. My sup ervisor Professor A. J. M. Nuruddin Chowdhury assigned me the topic. I nurse seek my level best to make it as an excellent one. I spendd all told told the latest info and information. I direct been serving this company as an intern under sales & Marketing Department for two months. I got privilege to charge latest data.My job responsibility is to create relationship with our make and potential customers, sales produces and provide do time to time by giving latest carrefours information. So, I am getting the opportunity to be very close to the customer. I have the idea why customer choose, the reason of leave and the reason of using pragoti Industries Product. My supervisor Mr. Khayrul Haue officer of Sales & Marketing Department guides me time to time to make this report fruitful. 1. 3 Research Objectives The main objective lens of this report is to have an assessment close to overall activities of sales & marketing department.How they manage all the ex variety sho w process, what serve it is providing to the customer and how agents atomic play 18 getting benefit from it and finally what is the gain for pragoti from this project, in short how it is contact up the requirements of the three stakeholders of the company. The objectives of the study be as fol execrable To get the practical experience by doing job with expert of sales & marketing manager. To understand the sweat structure of PIL. To understand the channels of PIL. To ascertain the yieldion process & know the inputs procurement system, w atomic flesh 18housing system and the selling and distri bution system of the company. 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 hydrofoil in the preparation of the financial statements. To know the application of the Corpo appreciate Governance in PIL To produce a report that will give a guide bir th to the future researchers or customers of the Pragoti Industries Ltd on the antithetical aspects that atomic number 18 covered in this report. Finally, to suggest the management with whatsoever recommendations so that the management fire identify some of the faulty aras in the organization and initiate necessary steps to bring changes in those atomic number 18as. 1. 4 Research Methodology The current study is conducted primarily in participatory research analysis method and thirdhand on practical and theoretical analysis. The research supervisor proposed research topic. Primary and secondary data was sedate from every possible source. The primary sources be as follows Observation of the production and management firmament of the company. opposite conversation with the respective offices and stuffs of the perseverance. Related field study as provided by the officer concerned. The secondary sources of data and the information are Web site address Book basis articles Internal magazine write out 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 retail environment from all the three perspective, UBL, retailers and agent. This report also gives an overview about the company like about the mission and goals of the company, the marketing mix & the strategies, competitive strategies etc.This report has been prepared through extensive give-and-take with the customer, sales growth manager, and agent and with the early(a) stakeholder. While preparing this report, I had a huge opportunity to have an in depth knowledge of sales activities of the Pragoti Industries Ltd. It also helped me to acquire a first-hand perception of a leaders state run move indus bear witness in Bangladesh. 1. 6 Limitation of the Study I have tried my best to adopt the maximum information from the authority, management, production department and marketing department.But I ha ve 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 allow for maintenance of planning procedure and articles. season is not sufficient for various activities to prepare a report. Non-avail mightiness of published data. Information was not provided ascribable to business secrecy. Lack of adequate knowledge about research by brand- newfound employee Non-availability of secondary data. Chapter- 2 Literature Review 2. 1 Introduction.Bangladesh is all in all under sustained in the sector of travel industry. As It has no rail machine industry, the sector is totally depended on import, except a few automobile-assembling units. Due to attach tally of convey, requirement and increased every social class it has to import a huge amount of automobiles from the former(a) countries. But in recent times, Bangladesh automobile industry is turning a round, as a result local and foreign investor are interest about this sector for investment. So the sector has a great potential difference and vista in the development.Pragoti is the only state own automobile company in Bangladesh and it do & repair only government related automation production. Bangladesh machine tools Factory (BMTF) was establish in February 11, 1979 and it is the commercial automobile assembly plant, maintain by Bangladesh Army, especially for defense industry. Walton & Aftab is the largest Bangladeshi private automobile company in Bangladesh. Walton Company establish a large plant for motorcycle production, on the other hand Aftab automobile is famous for bus accessories assembling. pic.Mitsubishi Pajero will be assembling in Bangladesh Mitsubishi Pajero, Hino Bus, Tata bus/Truck, Proton automobile manufacturing business company already buildup their production assemble plant in Bangladesh and here is the important news, nest Dhaka, location name is Dolaik hal, is the largest automobile market in Bangladesh for expire & new automobile parts. 2. 2 Bangladesh to the highest degree popular Automobile company List Aftab Automobiles Pragoti TagAZ Bangladesh (Proposed) Mitsubishi Pajero Walton Bangladesh Machine Tools Factory 2. 3 Auto parts market of Bangladesh.Bangladesh automobile industry is not a coarse industry and maximum automobile parts are imported from other countries . Besides, there is no quality local manufacturer of parts and components. So, parts and components are principally imported from countries like Japan, UK, Taiwan, China, Korea, Malaysia, USA, India, Indonesia, Pakistan, etc. The market of parts and components of this realm is very small but expanding rapidly. Commercial importers import a bulk amount of parts and components that are distributed through wholesalers and retailers.Final users get the parts from the retailers and the retailers buy parts from the importers. However, there are also importers wh o 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 express mail number of commercial importers import parts and components from different sources. In closely cases, the assembler imports parts and components from the nation where the brand is rootageated. well-nigh assemblers even purchase parts and components directly from the big importers. at that place is another crowd within the distribution channel of parts and components i. e. auto servicing centers like garage, mechanical workshop, body mental synthesis units, etc. The servicing centers purchase parts from the whole seller as well as from the retailer. death 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 active negotiations are going on to touch on up interchangeable venture parts and component manufactur ing units with China, Korea and Taiwan.Present structure of parts and components market is graphically paraden under pic In Bangladesh, neither we have an automobile industry nor a quality auto parts industry. So, the people of Bangladesh have no clear idea about the automobile industry or auto parts and components and their usage. The market of auto parts and components is influenced by couple of elements.People while 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 gondola carried out against circumstantial order to meet emergency requirement. There is no mass produc tion 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 outpouring, horn, wiring, wiper and washer assembly, head lights and other lights Trim and upholstery such as carpet, floor mat, rear parcel shelf, seat assembly, safety belt and move damping sheet popular parts such as paint and thinner, under seal, tires and tube, and mirrors. Chapter- 3 Growth & maturation 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 increase trend in the use of all sorts of automobiles/vehicles in Bangladesh.However, the increased contract of individual types of automobile varies from case to case. As a result of increasing admit of individual the annual demand for automobile is increasing with a great speed an statistic show the demand has increased into 30 percent than the last year with the Improvement of roads and highways and increased number of bridge and culverts are also responsible for motivating people to buy vehicles for their day to day activities. again the Improvement of life style in the urban areas is also responsible for the development automobile industry .With the passage of time the living standard of widely distributed people of BD has increased and they also turn into low class to middle class, middle class to upper 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 Government annual development plan has accustomed priority on development of automobile industry Special attraction for Japan made vehicles Withdrawn of Rickshaw gradually. Getting popularity of Small car/s ports vehicle Rent-a-car getting popularity Reduction of tax on the new motor vehicles Govt. initiative to ball up 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 motorcycle in Bangladesh is increasing day by day by a new group of users. Motorcycle is extensively used in Bangladesh in some(prenominal)(prenominal) rural and urban areas.The use of motorcycle has gradually increased in Bangladesh due to easy to drive easy access to remote location cheapest transport Longevity of the vehicle easy to handle and park at any place. The general users are the students, individual businessmen, officials of marketing companies and pharmaceutical industries. everyplace the last one and a half decades, the field level officials of different non- government organizati ons have been using a large number of motorcycles. In Bangladesh, both locally assembled motorcycle and imported motorcycle are available for intending users as detailed below(i) topically assembled motorcycle master(prenominal)ly, 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 ricksha / Three wheelers 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 two vehicles to ward off environmental pollution. It is estimated that presently there a re 160,000 auto rickshaws including unauthorized units in Dhaka City alone. There has been a phenomenal. However, efficacious maiden September,2002, the two stroke auto rickshaw will be totally banned, which is expected 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 Increased demand, economic 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 favor reconditioned motorcars much than brand new cars due to lower terms. In Bangladesh, more than 65% of the total motorcars are coming from Japan. Many Bangladeshis living in Japan involve themselves in reconditioned car busines s.Recently, the government has put an age restriction on the import of reconditioned motor cars. Reconditioned cars more than 3 years 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 reasonable price having longer durability. The government has introduced new system of travelcab 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) commence & doughy commercial vehicles (bus, minibus, truck, pick-up, etc) Like the motorcar, there has been an increasing trend in the number of light and heav y commercial vehicles that include mini bus, bus, human howlers, passenger 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 support to procure them. This festering 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 clownish 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 out tiller, tractor and trailers are being 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 ascertained that there is a reasonable 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 service 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 believeation the future prospects and also keeping the resent growth pace influenced by various elements discussed earlie r, it is expected that there would an superfluous 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 Headquarters 11, Agrabad C/A, Finley House (3rd floor) P.O. buffet no. 73 Chittagong4100, Bangladesh Location of the factory Barabkund, Dhaka-Chittagong Highway, Sitakund, Chittagong. Year of establishment 1966 under private ownership Nationalized Time After liberation of Bangladesh on 11th May, 1972 Types of operation Assembling the Transport Vehicles Operated By Bangladesh Steel and applied science Corporation under the Ministry of industry Company Type Autonomous Initial Authorized Capital 20 Cores, Divided into 20,00,000 shares tk100/- Paid-up Capital.25 Lakhs, Divided into 25,000 no. of Ordinary Shares. Produ cts Car Assembling, Automotive Parts 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 communication Unit is established in Tejgoan Workshop at Dhaka. Nature of Business Govt. approved automobiles marketing company, repair Distributor of Isuzu, Suzuki vehicles from Japan and Bajaj, Swaraj Mazda & Maruti vehicles from India. Parts & Accessories, Sawafuji & Suzuki Generator from Japan, Scott & English industrial Generator from Singapore & G. S. Automotive battery from Indonesia Initial production capa urban center (Approximately) 200 Present production capacity (Approximately) 900 Logo pic Website http//www. bsec. gov. bd/html/ent_progoti.php .4. 2 Aim of Pr agoti Industries Limited The sky is not the limit for them but their expectations are within limit. Their imagination soars beyond conventional barriers. They share their destiny with their beloved motherland. They want to serve her the better in the greater pursuit for national 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 supplying them beyond expectation. Setting industry benchmarks of world class standard in delivering customer value through our encyclopedic product range, customer service 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 Maintaining the highest ethical standards and a community responsibility magna cum laude of a leading cor porate 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 Office 11, Agrabad C/A, Finley House (3rd floor), post box no. 73, Chittagong. yield Factory Barabkund, Dhaka-Chittagong Highway, Sitakund, Chittagong. Dhaka Office 151-152, Tejgaon C/A, Dhaka-1208.Pragoti Industries Limited (Local Management) Name Position Engr. Md. Nazmul Huda Managing manager Md. Mustafizur Rahman General passenger vehicle ( Marketing & Admin) Engr. Md. Ali Chowdhury Addl. Chief Engineer (purchase) Engineer Nizamul Haque Addl. Chief Engineer (In charge Plant) Dr. Zubaid-Ur-Ra hman Addl. Chief Medical police 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 Chairman Chairman, BSEC. Telephone88-02-8114616, 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. call back 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 Cell 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 General Manager, Sonali Bank Ltd,Chittagong. 8 Engr. A. k. M. Solayman Haque Managing Dir ector 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 foursome 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 Role & Responsibilities of Marketing & Sales Department ? Providing Quotation among prospect about inquiry. ? Receiving order from different prospect or customer. ? Selecting specific model for customer from factory on behalf of their choice. ? Direction to factory engineer for made up pre requisite model base on customer choice. ? Delivery the order pre specific date. ? Receiving product price through hard currency, 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 ripple 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 stick Origin of CKD ( ClOSE KNOCK DOWN) Country of origin 1 MITSUBISHI PAJERO 4.4 LWB WGON MITSUBISHI MOTOR JAPAN V31VHNDKB CORPORATION 2 MITSUBISHI PAJERO KH4WGNMR MITSUBISHI MOTOR JAPAN CR-45 CORPORATION 3 TATA TC BUS LP01316 TC TATA engine room & INDIA LOCOMOTIVE COMPANY LTD. 4 TATA miniskirt TRUCK 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 determine ( approved by BRTA), Petrol engine 4. 4, 4 cylinder, V31VHNDKB 86 k. w. long horse power/117 PS/5500 RPS, drive by even off hand, hard 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. , power 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, Drive by right hand,6 cylinder, horse power 160PS/K. W120/2500 RPM, Water cold, Diesel engine, Wheel bestial 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 motor 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 heed 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 MICROBUS 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 Price 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 in tended 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 realise these approaches the cost base approach (cost plus pricing, break-even analysis, and target profit pricing) the buyer-based approach (value-based pricing) and the competition-based approach (going rate and pie-eyed 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 Fully cash 3,05,000 Total=58,05,000 2 MITSUBISHI PAJERO CR-45 75,00,000/= Fully cash 76,000/= With additional fittings Total=75,76,000 3 TATA TC BUS 24,58,000 35% in down payment, additional 65% paid 18% interest wit h 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 good 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 incen tive to aid the sales of service or products of the firm is called sales promotion. PIL uses the following Consumer promotion tools they are Price crime syndicate At the time of festival PIL erect some special discount for Suzuki vehicles. Cash refund offer PIL still thinking about it. Patronage reward For corporate sales (Huge quantity) special discount offering. 6. 4. 2 Advertising advert is the fine art of convincing people that the doors to open standards are never closed.The Advertisement plan & campaign plan are similar in outline & structure. It matches the right audience to the right Message & represents it in the right medium to reach that audience. Objective of advertising plan are pee-pee awareness among 60% of target audience. Pragoti industries use the following media for advertising its products. They are Newspaper Advertise publish in The Daily Newspaper with multi colour, regarding after sales service facilities. Direct mail New products memorandum sends by d irect mail with product specification, advantage and design.Calendar Every 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 nigh of the Producers use intermediaries to bring their products to market. They try to forge a distribution channela set of mutually beneficial organizations involved 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 Pragoti 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. franchise will be cancelled if they fail to achieve the quota.