Automobile Industry in Bangldesh Essay

1. 1 Introduction Now day’s instruction is non merely confined to books and schoolrooms. Internship is such a plan that helps to prove the cognition and apprehension of the classs and to utilize them in a practical field. Internship developing gives this chance to be engaged in an organisation where it is possible to hold an experience of the existent concern universe and to see different practical facets of instruction. Marketing Department of Chittagong University is committed to bring forth selling professionals for the market who will non merely profit the society as a whole but besides make way of a better hereafter for the following coevals.

Internship plan is a measure towards carry through this committedness by giving the pupils an chance to acquire ready for the existent universe before they enter into it. 1. 2 Research Issue This research is a demand of the internship plan for my MBA plan. My supervisor Professor A. J. M. Nuruddin Chowdhury assigned me the subject. I have tried my degree best to do it as an first-class one. I used all the latest information and information. I have been functioning this company as an intern under Gross saless & A ; Marketing Department for two months. I got privilege to set latest information.

My occupation duty is to make relationship with our present and possible clients. gross revenues merchandises and supply service clip to clip by giving latest product’s information. So. I am acquiring the chance to be really near to the client. I have the thought why client choose. the ground of leave and the ground of utilizing pragoti Industries Product. My supervisor Mr. Khayrul Haue officer of Gross saless & A ; Marketing Department guides me clip to clip to do this study fruitful. 1. 3 Research Objectives The chief aim of this study is to hold an appraisal about overall activities of gross revenues & A ; selling section.

How they manage all the merchandising procedure. what services it is supplying to the client and how agents are acquiring benefit from it and eventually what is the addition for pragoti from this undertaking. in short how it is run intoing up the demands of the three stakeholders of the company. The aims of the survey are as follow: • To acquire the practical experience by making occupation with expert of gross revenues & A ; selling director. • To understand the thrust construction of PIL. • To understand the channels of PIL. • To detect the production procedure & A ; cognize the inputs procurance system. warehousing system and the merchandising and distribution system of the company.

• To cognize the selling and pricing policies of their merchandises • To cognize about the merchandises & A ; the quality of merchandises produced by the company. • To cognize the accounting system and the transparence in the readying of the fiscal statements. • To cognize the application of the Corporate Governance in PIL • To bring forth a study that will give a guideline to the hereafter research workers or clients of the Pragoti Industries Ltd on the different facets that are covered in this study.

• Finally. to propose the direction with some recommendations so that the direction can place some of the faulty countries in the organisation and originate necessary stairss to convey alterations in those countries. 1. 4 Research Methodology The current survey is conducted chiefly in participatory research analysis method and secondary on practical and theoretical analysis. The research supervisor proposed research subject. Primary and secondary information was collected from every possible beginning. The primary beginnings are as follows: • Observation of the production and direction sector of the company. • Face-to-face conversation with the several offices and materials of the industry.

• Related field survey as provided by the officer concerned. The secondary beginnings of informations and the information are: • Web site reference • Book footing articles • Internal magazine published by PIL • Different booklets of PIL • Information provided by my supervisor 1. 5 SCOPE OF THE STUDY This internship study covers all the facets of retail environment from all the three position. UBL. retail merchants and agent. This study besides gives an overview about the company like about the mission and ends of the company. the selling mix & A ; the schemes. competitory schemes etc.

This study has been prepared through extended treatment with the client. gross revenues development director. and agent and with the other stakeholder. While fixing this study. I had a great chance to hold an in deepness cognition of gross revenues activities of the “Pragoti Industries Ltd. ” It besides helped me to get a first-hand perceptual experience of a taking province run automobile industry in Bangladesh. 1. 6 Restriction of the Study I have tried my best to roll up the maximal information from the authorization. direction. production section and selling section.

But I have faced the undermentioned jobs: • To do a study it is really problem full to roll up the information from assorted personal for the occupation constrain. • Planning & A ; production department’s has no appropriate care of be aftering process and articles. • Time is non sufficient for assorted activities to fix a study. • Non-availability of published informations. • Information was non provided due to concern secretiveness. • Lack of equal cognition about research by new employee • Non-availability of secondary informations. Chapter- 2 Literature Review 2. 1 Introduction.

Bangladesh is wholly developing in the sector of car industry. As It has no car industry. the sector is wholly depended on import. except a few automobile-assembling units. Due to increase sum of demand. requirement and increased every twelvemonth it has to import a immense sum of cars from the other states. But in recent times. Bangladesh car industry is turning about. as a consequence local and foreign investor are involvement about this sector for investing. So the sector has a great potency and chance in the development.

Pragoti is the lone province ain car company in Bangladesh and it made & amp ; fix merely authorities related mechanization production. Bangladesh machine tools Factory ( BMTF ) was set up in February 11. 1979 and it is the commercial car assembly works. maintain by Bangladesh Army. particularly for defence industry. Walton & A ; Aftab is the largest Bangladeshi private car company in Bangladesh. Walton Company set up a big works for bike production. on the other manus Aftab car is celebrated for coach accoutrements piecing. [ movie ] .

Mitsubishi Pajero will be piecing in Bangladesh Mitsubishi Pajero. Hino Bus. Tata bus/Truck. Proton automobile maker company already buildup their production assemble works in Bangladesh and here is the of import intelligence. near Dhaka. location name is Dolaikhal. is the largest car market in Bangladesh for expire & A ; new car parts. 2. 2 Bangladesh most 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 car industry is non a large industry and maximal car parts are imported from other states. Besides. there is no quality local maker of parts and constituents. So. parts and constituents are chiefly imported from states like Japan. UK. Taiwan. China. Korea. Malaysia. USA. India. Indonesia. Pakistan. etc. The market of parts and constituents of this state is really little but spread outing quickly. Commercial importers import a majority sum of parts and constituents that are distributed through jobbers and retail merchants.

Final users get the parts from the retail merchants and the retail merchants buy parts from the importers. However. there are besides importers who have their ain retail mercantile establishments. An assembly program may besides be an importer who requires a big measure of parts and constituents for its piecing unit. A limited figure of commercial importers import parts and constituents from different beginnings. In most instances. the assembly program imports parts and constituents from the state where the trade name is originated. Some assembly programs even purchase parts and constituents straight from the large importers.

There is another group within the distribution channel of parts and constituents i. e. car serving centres like garage. mechanical workshop. organic structure constructing units. etc. The service centres purchase parts from the whole marketer every bit good as from the retail merchant. End users get parts and constituents from retail merchants covering in different type and trade name of car. Although no local maker of quality parts does be. but active dialogues are traveling on to put up joint venture parts and constituent fabricating units with China. Korea and Taiwan.

Present construction of parts and constituents market is diagrammatically shown below: [ movie ] In Bangladesh. neither we have an car industry nor a choice car parts industry. So. the people of Bangladesh have no clear thought about the car industry or car parts and constituents and their use. The market of car parts and constituents is influenced by twosome of elements.

Peoples while purchase car parts and constituents. they are influenced by several factors and these car service centres. workshop and garage. motor pool directors. Institutional Importers ( i. e. embassy ) . retail merchants. agents of branded car. 2. 4 Domestic parts and constituents industry Soon. there is no well-organized and choice maker of parts and constituents in Bangladesh. Some low quality autochthonal fabrication of parts and constituents are at that place but they are carried out against specific order to run into exigency demand. There is no mass production to run into the demands. Given below is some thought of what the local makers try to bring forth: Filters. radiators. radiator hosieries. air filter lodging ; Brake tablets. brake membranophone. brake phonograph record ;

Electrical parts such as battery. horn. wiring. wiper and washer assembly. caput visible radiations and other visible radiations ; Trim and upholstery such as rug. floor mat. rise up parcel shelf. place assembly. safety belt and melt muffling sheet ; General parts such as pigment and dilutant. under seal. tyres and tubing. and mirrors. Chapter- 3 Growth & A ; Development of Automobile Industry in Bangladesh 3. 1 Bangladesh Automobile Prospect Bangladesh has a great chance and potency in the development of car industry at that place has been an increasing tendency in the usage of all kinds of automobiles/vehicles in Bangladesh.

However. the increased demand of single types of car varies from instance to instance. As a consequence of increasing demand of single the one-year demand for car is increasing with a great velocity an statistic show the demand has increased into 30 per centum than the last twelvemonth with the Improvement of roads and main roads and increased figure of span and culverts are besides responsible for actuating people to purchase vehicles for their twenty-four hours to twenty-four hours activities. Again the Improvement of life manner in the urban countries is besides responsible for the development car industry.

With the transition of clip the populating criterion of general people of BD has increased and they besides turn into low category to middle category. in-between category to upper category and in recent times the sum of upper in-between category has increased which means extra demand for car There are besides some another cardinal ground for whom Bangladesh has a great potency in this industry. They are mentioned below: • Government one-year development program has given precedence on development of car industry • Special attractive force for Japan made vehicles • Withdrawn of Rickshaw bit by bit.

• Geting popularity of Small car/sports vehicle • Rent-a-car acquiring popularity • Reduction of revenue enhancement on the new motor vehicles • Govt. enterprise to drift 10. 000 commercial vehicles • Expanded and increased volume of export and import 3. 2 Comparative scenario of different types of cars in Bangladesh A comparative scenario of different vehicles and their usage tendency may be explained as below: ( a ) Motorcycle The usage of bike in Bangladesh is increasing twenty-four hours by twenty-four hours by a new group of users. Motorcycle is extensively used in Bangladesh in both rural and urban countries.

The usage of bike has bit by bit increased in Bangladesh due to easy to drive ; easy entree to remote location ; cheapest conveyance ; Longevity of the vehicle ; easy to manage and park at any topographic point. The general users are the pupils. single business communities. functionaries of marketing companies and pharmaceutical industries. Over the last one and a half decennaries. the field degree functionaries of different non- authorities organisations have been utilizing a big figure of bikes. In Bangladesh. both locally assembled bike and imported bike are available for meaning users as elaborate below:

( I ) Locally assembled bike: Chiefly. there are about 20 locally assembled trade names. For illustration: ATLAS. EMMA. NITOL and SINGER. List of the local bike piecing houses is given in the extension. ( two ) Imported bike: There are at least 7-8 different regular trade names of bike and these are: Honda Cadmium 80. Yamaha. Suzuki from Japan. Xinfu. Jangshen. Jailing. Hero. TVS Victor. Yamaha. Suzuki. Bajaj. Vespa. etc. ( B ) Auto jinrikisha / Three Wheelers There has been a phenomenal addition in the figure of car jinrikisha and tampoo in Bangladesh. Now. it is an of import vehicle in Bangladesh.

Low and in-between category household members chiefly use these vehicles. But. the authorities of Bangladesh has already banned these two vehicles to avoid environmental pollution. It is estimated that soon there are 160. 000 car jinrikishas including unauthorised units in Dhaka City entirely. There has been a phenomenal. – However. effectual first September. 2002. the two stroke car jinrikisha will be wholly banned. which is expected to dramatically cut down the demand of parts for these type of vehicles. but increase demand for the new CNG car jinrikisha and three stroke car jinrikishas will be at that place with increased demand for parts and constituents.

( degree Celsius ) Motorcars Increased demand. economic development and changed life manner have resulted in a great addition in the figure of motor autos and the demand for motor autos is still increasing twenty-four hours by twenty-four hours. Both trade name new and reconditioned autos are imported into the state. Statisticss show that bulk of the people normally prefer reconditioned autos more than trade name new autos due to take down monetary value. In Bangladesh. more than 65 % of the entire autos are coming from Japan. Many Bangladeshis life in Japan involve themselves in reconditioned auto concern.

Recently. the authorities has put an age limitation on the import of reconditioned motor autos. Reconditioned autos more than 3 old ages old can non be imported. The authorities has besides reduced the responsibilities and revenue enhancements on the import of new autos to deter reconditioned auto import. Impact is that people now can purchase new autos at a sensible monetary value holding longer lastingness. The authorities has introduced new system of hack in 1998. As a consequence. the figure of autos has been increasing. But. the demand of trim parts and constituents will be lesser.

Again. after the first September 2002. the prohibition of car jinrikisha will take to a important addition in autos chiefly in the signifier of cab cabs. Use of autos has increased enormously. which is apparent from the statistics for the last five old ages shown in the chart below: ( vitamin D ) Light & A ; heavy commercial vehicles ( coach. minibus. truck. pick-up. etc ) Like the auto. there has been an increasing tendency in the figure of light and heavy commercial vehicles that include mini coach. coach. human belly laughs. rider bearers. trucks. pick-ups. covered new waves. big covered new waves. etc.

Over the last one decennary. the usage of these types of vehicles has increased at a high rate. This is due to increased demand for the these types of vehicles/automobiles efficaciously backed by institutional fiscal support to secure them. This growing rate will go on to increase in the close hereafter. The mean growing rate is 5. 63 % and 4. 644 in the figure of vehicles yearly. ( vitamin E ) Farm and agricultural equipment/vehicles Besides. there is an increasing tendency in the figure of farm and agricultural equipment/vehicles due to increased application of modern tools and techniques in agriculture and agricultural production.

Now-a-day. agricultural vehicles like power tiller. tractor and dawdlers are being used in the rural countries more often than the past. During the last one decennary. assorted agricultural development undertakings funded by the different giver bureaus have been implemented in the rural countries and under those plans. the husbandmans were given fiscal installations through NGOs and Bankss to secure modern agricultural equipment including farm vehicles. One of the cardinal elements that made this possible is the handiness of rental funding installations in the state and the big sum of agricultural recognition financess.

It has been observed that there is a sensible growing in the figure of agricultural equipment every twelvemonth. This growing rate will go on to increase in the close hereafter provided there is no drastic alteration in the authorities policy associating to agricultural sector like decrease in the subsidy and aid and low cost fund for the husbandmans. The mean one-year growing rate is 2. 5 % and 125 in figure of vehicles every twelvemonth. 3. 3 Estimated demand of car /vehicles in Bangladesh.

Taking into consideration the hereafter chances and besides maintaining the resent growing gait influenced by assorted elements discussed before. it is expected that there would an extra addition in the usage of vehicles. In position of the possible new avenues and chances and looking into the leaden mean growing rate of 6 % . tabular array below shows estimated demand for the following five old ages. Table: Projected demand of car /vehicles in Bangladesh |Vehicle/Year | |Taxi | |Bus/ Minibus | |Tractor |3. 646 | |Headquarters |11. Agrabad C/A. Finley House ( 3rd floor ) P.

O. box no. 73 | | |Chittagong4100. Bangladesh | |Location of the mill |Barabkund. Dhaka-Chittagong Highway. Sitakund. Chittagong. | |Year of constitution |1966 under private ownership | |Nationalized Time | : After release of Bangladesh on 11th May. 1972 | |Types of operation |Assembling the Transport Vehicles | |Operated By |Bangladesh Steel and Engineering Corporation under the Ministry of industry | |Company Type | : Autonomous | |Initial Authorized Capital |20 Cores. Divided into 20. 00. 000 portions @ tk100/- | |Paid-up Capital.

|25 Lakhs. Divided into 25. 000 no. of Ordinary Shares. | |Products |Car Assembling. Automotive Parts | |Main beginnings of CMD Kits from | : Vauxhall Motors of England ; American Motors Corporation ( AMC ) of USA ; Isuzu Motors | | |Corporation. Mitsubishi Motors Corporation. Nissan & A ; Toyota Motors of Japan ; KIA | | |Motors. Daewoo Motors of Korea ; Aelous. Dong Feng of China ; HML TATA. Swaraj Mazda. | | |Mahindra & A ; Mahindra. Maruti. Eicher and Ashok Leyland of India | |Recent Initiative |A CNG Conversation Unit is established in Tejgoan Workshop at Dhaka.

| |Nature of Business |Govt. approved cars marketing company. Sole Distributor of Isuzu. Suzuki | | |vehicles from Japan and Bajaj. Swaraj Mazda & A ; Maruti vehicles from India. Parts & A ; | | |Accessories. Sawafuji & A ; Suzuki Generator from Japan. Scott & A ; English industrial | | |Generator from Singapore & A ; G. S. Automotive battery from Indonesia | | Initial production capacity | ( Approximately ) 200 | |Present production capacity | ( Approximately ) 900 | |Logo | [ movie ] | |Website |http: //www. bsec. gov. bd/html/ent_progoti. php | .

4. 2 Aim of Pragoti Industries Limited The sky is non the bound for them but their outlooks are within bound. Their imaginativeness soars beyond conventional barriers. They portion their fate with their beloved fatherland. They want to function her the better in the greater quest for national economic emancipation. . 4. 3 Mission of PIL We shall be at the head of car industry development by: • Expecting cars required by all our clients everyplace and innovatively providing them beyond outlook.

• Puting industry benchmarks of universe category criterion in presenting client value through our comprehensive merchandise scope. client service and all our activities • Building an exciting team-based working environment that will pull. develop and retain employees of exceeding ability who help observe the success of our concern. of our clients and of national development • Keeping the highest ethical criterions and a community duty worthy of a taking corporate citizen • Continuously bettering productiveness and profitableness. 4. 4 Vision of PIL.

To be in thee head of national development by supplying all the clients inspirational strength. reliable support and the most comprehensive scope of vehicle solutions. through our squad of professionals who work passionately to be outstanding in everything we do. 4. 5 Organizational construction of the Pragoti Industries Ltd. ( Agrabad Branch ) Branches of Pragoti Industries Limited Chittagong Office 11. Agrabad C/A. Finley House ( 3rd floor ) . station box no. 73. Chittagong. Production 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 Director | |Md. Mustafizur Rahman |General Manager ( Marketing & A ; Admin ) | |Engr. Md. Ali Chowdhury |Addl. Chief Engineer ( purchase ) | |Engineer Nizamul Haque |Addl. Chief Engineer ( In charge Plant ) | |Dr. Zubaid-Ur-Rahman |Addl. Chief Medical Officer | |Md. Ashraful Haider Khandaker |DGM ( Com ) | |Md. Golam Nabi |Deputy Chief Accounts Officer | |Md. Faridul Islam |DGM ( com ) Dhaka Office | Board of Directors ( PIL Company Board ) |Sl. |Name |Designation | |1 |Md. Ataur Rahman |Chairman | | |Chairman. BSEC. | | | |Telephone:

88-02-8114616. 8112808. | | |2 |Mr. Md. Forhad Uddin |Director | | |Addl. Secretary. Ministry of Industries. | | | |Telephone: 88-02-9563561. 7194156 ( Res. ) | | |3 |Mr. P R Borua |Director | | |Rtd. DIG. | | | |Phone: 88-02-8912414 | | |4 |Mr. Sheikh Md. Mobarak Hossain. |Director | | |Director ( Planning & A ; 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 Director | | |Managing Director. Pragoti Industries Ltd. | | | |Telephone: 88-031-723110. 725712 | | |9 |Mr. Md. Helal Uddin |Director | | |General Manager. Janata Bank Ltd. Divisional Office. | | | | 27 Agrabad C/A. Chittagong. | | | | | | Chapter- 5 Marketing organisation of pragoti industry The “Marketing & A ; Gross saless Department” of PIL is one of the most of import sections of PIL.

In this section. there are one DGM ( Depute general director ) . two adjunct director and four executives. They are smart. energetic. experienced and high educated. They are capable of managing clients and selling the merchandises in the efficient and effectual manner. [ movie ] Role & A ; Duties of “Marketing & A ; Gross saless Department” : ? Supplying Citation among prospect about enquiry. ? Receiving order from different chance or client. ? Choosing specific theoretical account for client from mill on behalf of their pick. ? Direction to mill applied scientist for made up pre needed theoretical account base on client pick. ? Delivery the order pre specific day of the month.

? Receiving merchandise monetary value through hard currency. chque. or money reception. ? Deposit that sum into histories section. ? Attending seminar. symposium as portion of selling activities. ? Input all of gross revenues & A ; money reception in several diary. Chapter- 6 Marketing Mix schemes of Pragoti Industries 6. 1 Merchandise: As we have known that Pragoti industries limited does non bring forth car Mobiles but merely assembles the car Mobiles. After piecing it chiefly markets the undermentioned merchandises: Merchandise name and theoretical account. beginning of CKD & A ; state of origin |Sl No |Product name |Model |Origin of CKD ( ClOSE KNOCK DOWN ) |Country of beginning | |1 |MITSUBISHI PAJERO 4.


|Sl No |Product Name |Model |Specification/Features | | | | | | |1 |MITSUBISHI PAJERO 4. 4 |LWB WGON |Long wheel base. 5 door. 9 set ( approved by BRTA ) . Petrol engine 4. 4. 4 cylinder. | | | |V31VHNDKB |86 k. w. Equus caballus power/117 PS/5500 RPS. thrust by right manus. difficult top metal. 2350 CC. | | | | |wheel base 2725 m. m. . digital clock. coffin nail igniter. fold belt. power maneuvering. 1| | | | |additional wheel with screen. | | | | |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. tungsten.

Equus caballus power/136 PS/3500 RPS. thrust by right manus. difficult top metal. 2477 CC. | | | | |wheel base 2800 m. m. . power maneuvering. 1 extra wheel with screen. | | | | |Co lour – BLACK. SILVER | |3 |TATA TC BUS |LP01316 TC |Tata LPO-1316/55TC. 52 set Deluxe coach. power maneuvering. 4*2. Drive by right manus. 6 | | | | |cylinder. Equus caballus power 160PS/K. W120/2500 RPM. Water cold. Diesel engine. Wheel Base | | | | |5545 CC. 1additionl wheel. | |4 |TATA MINI TRUCK |LPT 709 |Tata LPT-709 EX. 3. 5 ton truck human body. 4. *2. 4 cylinder. 3783 CC. Turbo Charge | | | | |inter cooled. Diesel engine. Drive by right manus. Wheel Base 3400 CC. end product 66.

3 | | | | |km. 90 PS/2400RPS. 1additionl wheel. | |5 |ASHOK LEYLAND MINI Truck |HR-55 |HR-55 in 1. 5 ton mini truck human body. 4 cylinder. 2771 CC in line over attentiveness Vs | | | | |direct injection. H2O cold. Diesel engine. power maneuvering. end product: 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 Equus caballus power/4000 RPS. Wheel Base 3200. wireless. Digital Clock. Cadmium | | | | |player. power Window. Bumper | |7 |MITSUBISHI MICROBUS |P13WHLNDER | 5 door ( Skiding both side ) . 12 set ( approved by BRTA ) . 4.

2 cylinder. 86 k. w. | | |L-300 | |horse power/114 PS/5750 RPS. thrust by right manus. difficult top metal. power maneuvering. 1 | | | | |additional wheel with screen. bilt in Ac. | | | | |Co lour – WHITE | 6. 2 Services: In instance of supplying services Pragoti industries limited is non exception. Like other cars industries it provides services which are followerss every merchandise has one twelvemonth warrantee. All maintenance mans services are provided through 7 ( seven ) serving agents of Pragoti Industries Ltd which are situated at Dhaka and Chittagong. A. Dhaka metropolis: No. of agents -05.

The service agents are at Motijeel. Fakirarpul. Tejgaon. Baridhara and Tongi. B. Chittagong City: No. of serving agents – 02. The service agents are at Sholoshahar and Jamal Khan Lane Product. 6. 3 Pricing: Monetary value is the component of the selling mix that produces gross ; the other elements produce costs. Price is the easiest selling mix elements to set ; merchandise characteristics. channel. and even promotion take more clip. Price besides communicates to the market the company’s intended value place of its merchandise and trade name. Companies set monetary values by choosing a general pricing attack that includes one or more of three sets of factors.

We examine these attacks: the cost base attack ( cost plus pricing. break-even analysis. and mark net income pricing ) ; the buyer-based attack ( value-based pricing ) ; and the competition-based attack ( traveling rate and sealed command pricing ) Pragoti’s pricing Method: Pragoti fo0llows the cost- based method in puting monetary values of all its merchandises. They consider different monetary values and gauge break-even volumes. likely demand. and net incomes for each. Pragoti Industries ltd. Merchandise name. monetary value per unit & A ; payment footings: |Sl No |Product Name |Price per unit |Payment footings | | | | | | |1 |MITSUBISHI PAJERO 4.

4 |55. 00. 000 |Fully hard currency | | | |3. 05. 000 | | | | |Total=58. 05. 000 | | |2 |MITSUBISHI PAJERO CR-45 |75. 00. 000/= |Fully hard currency | | | |76. 000/= | | | |With extra adjustments |Total=75. 76. 000 | | |3 |TATA TC BUS |24. 58. 000 |35 % in down payment. extra 65 % paid 18 % involvement with 36 monthly | | | | |installment. | |4 |TATA MINI TRUCK |16. 50. 000 |Fully hard currency | |5 |ASHOK LEYLAND MINI Truck |16. 50. 000 |Fully hard currency | |6 |NISSAN NAVARA PIC UP |41. 72. 000 |Fully hard currency | |7 |MITSUBISHI MICROBUS |28. 50. 000 |Fully hard currency | | |L-300 | | | 6. 4 Promotion:

In recent clip selling non merely calls for merely developing a good merchandise but besides pricing it beautifully and doing it available to the targeted client. Companies besides must pass on with their clients and they try to make a good client relation among them. To pass on good. the house frequently hires publicizing bureaus to develop effectual advertizement. give assignment to active experient officers and executives. give on – line services to the large business communities or organisation. and make a private relationship with clients. As PIL assembles cars for selective clients it spends less than the others.

It chiefly uses two types publicity. They are: • Consumer publicity tools & A ; Advertising • 6. 4. 1 Consumer publicity tools: Short term inducement to promote the gross revenues of service or merchandises of the house is called gross revenues publicity. PIL uses the undermentioned Consumer publicity tools they are: Price Battalion: At the clip of festival PIL offer some particular price reduction for Suzuki vehicles. Cash refund offer: PIL still believing about it. Patronage wages: For corporate gross revenues ( Huge measure ) particular price reduction offering. 6. 4. 2 Ad: Ad is the all right art of converting people that the doors to open criterions are ne’er closed.

The Advertisement program & A ; run program are similar in lineation & A ; construction. It matches the right audience to the right Message & A ; represents it in the right medium to make that audience. • Objective of advertisement program are • Create consciousness among 60 % of mark audience. Pragoti industries use the undermentioned media for publicizing its merchandises. They are Newspaper: Advertise publish in The Daily Newspaper with multi coloring material. sing after gross revenues service installations. Direct mail: New product’s catalogue sends by direct mail with merchandise specification. advantage and design.

Calendar: Every twelvemonth Pragoti Publishes colourful and attractive calendar with image of their merchandises. Direct mail: New product’s catalogue sends by direct mail with merchandise specification. Ad jobs: PIL frequently can non publicize in the media since it is really expensive and trouble in the corporate degree. Finance 6. 4. 3 Distribution Channel: Most of the Producers usage mediators to convey their merchandises to market. They try to hammer a distribution channel—a set of mutualist organisations involved in the procedure of doing a merchandise or service available for usage or ingestion by the consumer or concern user.

The distribution maps of PIL are made by 32 traders. Functions of the traders: • Sell the autos to the private company. people or NGO which are produced by the 1st party. Here Pragoti is the first party. • They can non sell other company’s autos except the Pragoti within the continuance of the contract. • The full payment will be collected by them from the purchasers. • Help the purchasers in taking permission from BRTA. • Will sell at least 40 autos within the title continuance. The public presentation will be evaluated after 6 months. Dealership will be cancelled if they fail to accomplish the quota.


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