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A Project Report Submitted by
Reg. No. 1175207
In partial fulfillment for the award of the degree Of
MASTERS OF BUSINESS ADMINISTRATION
IN MARKETING At
RIMT-INSTITUTE OF MANAGEMENT AND COMPUTER TECNOLOGY,MANDI GOBINDGARH PUNJAB TECHNICAL UNIVERSITY
I take this opportunity to express my profound sense of gratitude & respect to all those who helped me in this Research. I would like to make special mention of help and encouragement that I received from Mr. RAJKUMAR SANDAL & MR.BHUPESH SHARMA, my project Managers which were critical in the development of this project. I have profited immensely from working with many distinguished thinkers and doers, who advised me at each step. I would also like to thank the Marketing Department of nice exports and people in the organization for sparing their valuable time and providing useful insight’s that have made my learning experience very fruitful.
Above all I want to thanks my parents, for their continuous involvement and constant support. Finally and most important I would like to thank to Faculty of RIMT to provide me with such an opportunity that has enhanced my learning horizon Last but not least, I thank the almighty, may he stand with all of us.
TINA ARORA REG. NO. 1175207 MBA-3RD SEM
I feel delighted to present my project report on “ FACTORS AFFECTING BUYING BEHAVIOR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA” is a matter of honor and pride for me that I got a chance to undergo my Summer Training in a company like NICE EXPORTS PVT LTD. (CR Division). In this period of six weeks I got familiar to the real conditions of an organization and especially to the work culture of such a big and prestigious group which has its name in the manufacturing of Two Wheelers and many others products as well as Customer services.
The first task for me was to know about the concept on which my project was based. Then I had to set criteria, on the basis of which the above concept was valued. The data was collected for each of the parameter found responsible in influencing the purchase decision of the customers through Marketing Research Program.
Hence, this project had to be completed in the Six weeks of time. As the time was limited, so there is a possibility that some matters might not have been taken into consideration, but every effort has been done from my side to include every necessary parameter and include whole information that I got from the market during surveys as well as the marketing Research Program.
This is to certify that the research project entitled “FACTORS AFFECTING BUYING BEHAVIOUR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA” submitted for the partial fulfillment of requirement for the degree of MASTERS OF BUSINESS ADMINISTRATION at , RIMT MANDI GOBINDGARH affiliated to PUNJAB TECHNICAL UNIVERSITY, JALANDHAR is a bonafide research work carried out by TINA ARORA of M.B.A under my supervision and that no part of this has been submitted for any degree.
The assistance and help received during the course of the investigation have been fully acknowledged. TINA ARORA
I hereby declare that the project titled “FACTORS AFFECTING BUYING BEHAVIOUR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA” is an original piece of research work carried out by me.
The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of Master of Business Administration to RIMT COLLEGE OF MANAGEMENT affiliated to Punjab technical university.
Signature: TINA ARORA M.B.A. 3RD SEM
Quality should be used to cover the price.R. Better credit facility should be given to the customers and payment norms should be simplified. Services. More customers will be attracted towards the products if quality parameters such as surface finish. customer behavior. The price should be competitive with the other suppliers. The main aim of the project is to know the purchase criteria / Buying Behavior of customers of the Cold Rolled Steel Strips/ Sheets provided by the NICE EXPORTS C. Division and used in various industries ( Bicycle ND PARTSetc. As the NICE EXPORTS group is known for its completely customer. For that very reason NICE EXPORTS CRD undergoes this project. .R. Improvement in quality. are improved upon by getting continuous feedback on the quality and other services provided by the company. peeling off etc. The third most important factor is Credit policy of the company. Delivery and Rate reduction should be made to further increase the market share and to attract the new customers of C. Steel Strips/ Sheets.driven approach.) in Ludhiana. The second most important factor is delivery system and price. the NICE group develops and adapts marketing strategy and philosophy. The customer’s perceive Quality as the most important factor while purchasing. new market segments and product opportunities along with sensitivity to changing customer needs.EXECUTIVE SUMMARY In the age of fast changing Marketing strategies.
CONTENTS CHAPTERS CHAPTER-1 INTRODUCTION OF THE PREOJECT REVIEW OF LITERATURE OBJECTIVE OF STUDY SCOPE OF STUDY CHAPTER-2 COMPANY PROFILE CHAPTER-3 RESEARCH METHODOLOGY UNIVERSE OF STUDY SAMPLING TECHNIQUES PERIOD OF STUDY LIMITATIONS OF STUDY SCOPE FOR FURTHER STUDY CHAPTER-4 ANALYSIS OF TOPIC CONCLUSIONS INFERENCES SUGGESTIONS & RECOMMENDATIONS CHAPTER-5 BIBLIOGRAPHY QUESTIONNAIRE .
Then I had to set criteria. the area of operation for me was the MARKETING DEPARTMENT of the organization. The data was collected for each of the parameter found responsible in influencing the buying behavior of the customers though Marketing Research Program. on the basis of which the above concept was valued. The first task for me was to know about the concept on which my project was based. .INTRODUCTION TO THE PROJECT The project was given to me to study the “FACTORS AFFECTING BUYING BEHAVIOR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA”. So.
For instance. However. Because the business market is so large. it draws the interest of millions of companies worldwide that market exclusively to business customers. purchase decision hinge on the outcome of a bidding process between competitors offering similar products and services. which invariably will lead to new purchases by a large number of companies. the opposite is true if demand declines. Under these condition companies will ratchet up their operations to ensure demand is met. For example. If consumer demand for cars increases many companies connected with the automobile industry will also see demand for their product and services increase. a small swing in consumer demand can create big changes in business purchasing. Thus unlike consumer markets. may be will down the supply chain from where the business operates.INTRODUCTION TO CONSUMER BEHAVIOUR The Business market is comprised of organizations that in some form are involved in the manufacturing. The amount of purchasing undertaken in the business market easily dwarfs the total spending by consumers. where building a recognizable brand is very important. it is conceivable that an increase of just one or two percent for consumer demand can increase business demand for products and services by five or more percent. for many purchase situations in the business market this not the case. which as we will discuss. Unfortunately. . In fact. In some ways understanding the business market is not as complicated as understanding the consumer market. the demand by business for products and services is affected by consumer purchases (called derived demand) and because so many organizations may have a part in creating consumer purchases. in certain business market. distribution or support of products or services sold or otherwise provided to other organizations. Automobile purchases are a good example. in many other ways business buying is much more complicated. For these marketers understanding how businesses make purchase decision is critical to their organization’s marketing efforts. Trying to predict these swings requires businesses to not only understand their immediate customers but also the end user.
a marketer can obtain a better picture of who is involved by looking at popular business classification systems set up by international governments. Essentially the chain represents major steps needed to manufacture a product that will eventually be sold as a final product. With such a large number of originations and industries contained within the business market. Mexico and the United States and the International Standard Industrial Classifications (ISIC). Each member of the supply chain purchases products and services enabling them to carry out its business objectives. which is widely used in Europe. Supply Chain Members The supply chain consists of mostly for-profit companies engaged in activities involving product creation and delivery. which covers Canada. such as the North American Industrial Classification system (NAICS). When making purchase decisions supply chain members may be motivated by such factors as: Product cost Return on investment Assurance of consistent supply Reciprocity with supplying firm . These reports provide descriptions of hundreds of industry classification. They operate in many industries and range in size from huge multinational companies with thousands of employees to one-person small businesses.WHO MAKES UP THE BUSINESS MARKET? There are millions of organizations worldwide selling their products and services to other organizations.
several additional User markets also make purchases either for their own consumption or they buy with the intention of redistributing to others. Business User Markets Besides selling final products and services to supply chain companies.An example of purchasing occurring in the supply chain includes: Manufacturing and Plant equipment Information Technology Offices Supplies Professional Business Services. In these purchase situations the buyer generally does not radically change the product from it’s from when it was purchased from a products manufacture. etc. .
especially within larger organizations. While single person purchasing is not unusual. but most of the time purchases are individual decisions.BUSINESS MARKET V/S CONSUMER MARKET? For marketers. the two markets are dissimilar in other ways requiring marketers to take a different approach when selling to business customers than to consumers. which consists of individuals within an organization that perform one or more of the following roles: . the selling environment of business markets present uniquely different circumstances when compared to selling to consumers. These differences include: How decisions are made. In the marketing literature those associated with the purchase decision are known to be part of a Buying Centre. There are situations in which multiple people may be involved in a consumer purchase decision. and 2) Demand in business markets tend to be more volatile than consumer markets. Size of purchases. such as a child influencing a parent to choose a certain brand of cereal or a husband and wife deciding together to buy a house. How Decision Are Made In the consumer market a very large percentage of purchase decisions are made by a single person. However. Time needed to make buying decision. requires of many. Number of buyers. especially within a small company. a significant percentage of business buying. The business market is significantly different. Type of promotional effort needed to reach buyer. At the beginning of this tutorial we saw two ways in which consumer and business markets differ: 1) Business markets are more likely to be price driven than brand driven. Existence of experienced purchasers.
. researchers. Buyer – Buyer is responsible for dealing with suppliers and placing orders (e. C. Gatekeeper – anyone who controls access to other Buying Center members (e.those who will actually use the product when it is received (e. the number of people involved in business purchase decisions results in decisions taking weeks. Influencer – has the ability to affect what is ordered such as setting order specifications (e. or even years. professional buyers are generally as knowledgeable about the product and industry as the marketer who is selling to them.g.g. (e...E. User . Experienced purchasers As noted in the discussion of the buying center. purchasing Agent).g. organizations often employ purchasing agents or professional buyers whose job is to negotiate the best deals for their company.. Larger purchases For products that are regularly used and frequently purchased. administrative assistant). .g. product manager).O). engineers. Unlike consumers. Because of this business purchasers often demand price breaks (e..g. Unlike consumer markets where impulse purchasing is rampant.g. discounts) for higher order levels. who often lack information when making purchase decisions. Initiator – any buying centre member who is the first to determine that a need exist.. Decision Making Time Depending on the product. businesses will often buy a larger volume at one time compared to consumer purchases. office staff etc). business purchase decisions can drag on for an extensive period. months. Decider – Decider has the power to make the final purchase decision.
Evaluate Options 4. Promotional Focus Companies who primarily target consumers often use mass advertising methods to reach an often widely dispersed market. along with a smaller number of buyers. Purchase 5. makes P2P contact by sales representatives a more effective means of promotion. Additionally. within some industries buyers are highly concentrated in certain geographic areas. within a particular market the number is much smaller. there are only a few thousands grocery stores with many of these centrally controlled as part of a chain of stores. BUSINESS BUYING BEHAVIOR To cap our discussion of the business market we now look at how purchasing decisions are made.business marketers the size of individual orders. Consequently. Need Recognition 2. compared to consumer products.Number of Buyers While there are several million companies worldwide that operate in the overall business market. marketing efforts are confined to a smaller targeted group. while in the United States there are 95 million households who may shop at a grocery store. After Purchase Evaluation. . Business purchasing follows the same five-step buying process faced by consumers: 1. For business-to. For example. Search 3.
OBEJECTIVES OF RESEARCH Primary Objective: To study the purchase criteria of the customers and identify the factors that influence the Customer Buying Behavior in respect of Cold Rolled Steel Strips/Sheets provided by the NICE EXPORTS(C. Secondary Objectives: 1. To find the major Specifications and Grades of Cold Rolled Steel Strips/ Sheets used in various type of industries in Ludhiana. . 3.R. 4. To know about the future expansion plans of various organizations & ascertain their increased buying from NICE EXPORTS CR Division.R) steel strips/ sheets are used as a raw material. 2. Division) used in various industries (Bicycle) in Ludhiana. To find out the market share of the NICE EXPORTS CR Division in Ludhiana Region. To find out the requirements of various types of industries in Ludhiana in which cold Rolled (C.
CYCLE PARTS in India began its journey around four decades ago. It is this spirit which drives even today the dream of providing total satisfaction in all its spheres of activities. besides being the fastest growing Indian Two-wheeler Company.NICE EXPORTS PROFILE NICE EXPORTS. of achievement through grit and determination. With a deep sense of belonging to the nice . Like every success story. cycles. 20000 Crore in 2007-2008 of which EXPORT share is more than 15%. NICE has today grown into multi-unit. The exports are being made to all parts of the world including sophisticated markets of Europe & US. coupled with vision and meticulous planning. The NICE EXPORTS began with a simple philosophy: “To provide excellent transportation to the common man.A name synonymous with the two wheelers. cold rolled steels and components. Today NICE is the largest exporter of two-wheelers in India. The group has redefined the concept of ANCILLIARISATION by extending technical & managerial support to the ancillaries. Starting as manufacturer of bicycle components. Hero’s saga contains an element of spirit and enterprise. manufacturing companies for bicycles. at a price he could easily afford”. multi-product. geographically diversified. Group Turnover is Rs.. IT has increased its market share from 54% to 58 %.
With the expertise available in-house the group has mustered to implement SAP in other Companies on its own.000 employees of the group have vividly and continuously demonstrated that human endeavor can ceaselessly achieve excellence and distinction given a congenial and conducive environment. He was awarded Businessman of the year award in 2005 by a leading business journal of India.. the Group’s dealers have catalyzed growth and act as a strong bridge between the customers and the group. is one of the leading business personalities among the businessmans. The flag ship company of the group NICE EXPORTS LIMITED has been practicing JUST-IN-TIME (JIT) INVENTORY since the period when the term was not widely known. .fraternity. The group Chairman Mr. SANJEEV GUPTA. The practice is prevalent in all the group companies. More than 20. This has been amply testified in very low employee turnover and world-class productivity.
With an installed capacity of 50. However the product was soon accepted by major automotive and White Goods manufacturers and today has been supplied to other market segment also. The plant was commissioned in July. and a modern close annealing facility to maximize the quality of its products. the Group established its own cold rolling mill for steel processing in 1990. Maruti Udyog Limited ancillaries/vendors for both formed and drawn components -in D. At the base of all Hero Group’s activities is one basic ingredient . 320 million with an installed capacity of 50. U. Cold Rolling Division is renowned for its tradition in maintaining high standards in the Product Quality constantly. 1991 at Ludhiana at a cost of Rs. EDD. Asia’s largest engineering consultants which had a technical collaboration with WEAN UNITED.A.000 TPA with an additional investment of Rs. e. Slitter. Reliability in customer servicing and is also committed to attune to the changing quality standards through continuous up gradation of Product. the plant has been investing constantly in up gradation of Technology and Human Resources. along with hydrogen annealing and Electro cleaning line has been installed for better product quality and capacity enhancement to 1. the world’s largest bicycle manufacturer. Cognizant of the importance to ensure perfect quality of the basic raw material. The plant was commissioned primarily to cater to the group requirements. Process and Human Resources.COMPANY PROFILE Hero Cycles Limited (Cold Rolling Division) has been promoted under backward integration plan by Hero Cycles Limited.30. An additional 6-HI COLD REDUCTION MILL based on a joint Engineering & design by MECON & Hero Cycle Ltd. automobile sector.000 MT per annum.cold rolled steel.S. MC-11 and other medium and high carbon grades. . the mill has state-of-art equipment including 4-HI reversible cold rolling-cum-skin pass mill with rewinding line. DD.000 MT in consultation with MECON. Towards realization of CUSTOMER DELIGHT. R.g. 700 million. C.
including hydraulic auto gauge controls. Division has also entered into an agreement for technical assistance to improve operation & maintenance of the plant with the help of technology & know how from Kawasaki Steel Corporation. 2) To improve the gauge accuracy. R. removal of Defects. C. Japan. Kawasaki Steel possesses expertise based on the wealth & experience and expertise acquired through development. Primarily Cold Rolling is done for two purposes: 1) To improve the surface finish of the steel.The mill has several firsts to its credit. automatic slow down and a totally enclosed. Kawasaki Steel Corporation will help C. semi continuous pickling line. . Division for improvement of Production Yield. reduction of Customer Returns & improvement of Maintenance Operations against certain predetermined Targets. Hero Cycles Limited. operation & maintenance of its own Cold Rolling Plant in Chiba and Mizushima Works. apart from effective anti-pollution and safety controls which were incorporated from the very beginning. computerized pass schedules. The company has also implemented SAP R/3 with the assistance of SIEMENS & MECON. Japan. R.
EXPRESSED AND IMPLIED BY MAINTAINING CONSISTENCY IN QUALITY THROUGH CONTINUOUS UPGRADATION OF TECHNOLOGY AND HUMAN ENDEAVOR FOR MAXIMIZING THE RETURN ON INVESTMENT TO THE STAKE HOLDERS .THE QUALITY POLICY OF THE COMPANY TO MEET THE CUSTOMER NEEDS.
SWOT ANALYSIS OF NICE EXPORT .
SWOT ANALYSIS STRENGTHS MANAGEMENT WITH VISION GOOD CORPORATE IMAGE LOCATION ADVANTAGE STRONG BRAND IMAGE MATERIAL QUALITY SATISFACTORY GOOD CUSTOMER BASE CAPTIVE CONSUMPTION 6 HI MILL WITH ADVANCED CAPABILITIES HYDROGEN ANNEALED FURNACE FOR BETTER FINISH SAP/ERP IMPLIMENTATION CAN PRODUCE SPECIAL GRADE MATERIAL INFRASTRUCTURAL FACILITIES FOR NORTHERN REGION .
WEAKNESSES INABILITY TO ACCOMMODATE CUSTOMERS IN URGENCIES INTER/ INTRA DEPARMENTAL COMMUNICATIONS NOT EFFECTIVE RECCURANCE OF SIMILAR PROBLEM INEFFECTIVE IMPLEMENTATION OF CORRECTIVE MEASURES DELAY & DAMAGES DURING TRANSPORTATION NEW DEVELOPMENTS. PERPETUAL DELAY UNPROFITABLE PRODUCT MIX NARROW WIDTH LIMITATION IN 760 MM PERCIEVED HIGH PRICE OF PRODUCT DELAY IN DELIVERY LESS CREDIT PERIOD .
SATISFACTION OF THE CUSTOMER CAN BE INCREASD THE COMPANY CAN INCRESE ITS MARKET SHARE BY INCRESING ITS PRODUCTION CAPCITY INCREASE MARKET SEGMENTS TO CATER AND TO INCREASE CUSTOMER BASE .OPPORTUNITIES GROWTH IN AUTO/ WHITE GOODS SEGMENTS GROWTH N ECONOMY WILL PULL THE DEMAND DIRECT/ INDIRECT EXPORT OPPORTUNITIES TO INCREASE THE MARKET FORWARD INTEGRATION IN PRESS MENTAL COMPONENTS/ TUBES/ COATED/ WIDER WIDTH BACKWARD INTEGRATION LIKE TIE UP WITH SOME HR PRODUCER QUALITY SHOULD BE USED TO COVER THE PRICE BY SUPPLYING RIGHT QUANITY AT TIME .
USAGE PATTERN CHANGING FROM CR TO GALVANIZED.THREATS HUGE IDLE & ADDITIONAL CAPACITY IN EXPANSIONS IN NEW MILL. EXISTENCE OF COMPETITION WILL CUT DOWN PROFITS REGIONALISATION DUE TO HIGH TRANSPORTATION COSTS. DECIMATION OF DD/ EDD GRADES. COATED STEEL MAJOR COMPITITORS OF HERO ARE IMPROVING THEIR QUALITY AND DELIVERY SMALLER SUPPLIER ARE INCREASING THEIR CREDIT PERIOD THE POLICIES OF THE COMPETITORS ARE FLEXIBLE AS COMPARED TO HERO CYCLES CR DIVISON . HR OILED AND PICKLED MARKET. SHIFT OF CR MARKET TO HR. COLOUR .
The different work centers in HERO CYCLES Ltd.R. Division are: . C. This card accompanies the coil through out its process life.PROCESS ROUTE Before the execution of a production orders the details of process route and product specifications are sent to the shop floor in the form of a small rectangular card.
the coil goes through the process of pickling that the coil is sent through various chambers containing acids. which removes the surface impurities. and a suffix of A. As it was mentioned above. . on a card. but the optimization package being developed by MECON will calculate this. B. and is displayed. This identity of slatted coil is maintained till it reaches the CR slitting stage. and suggest the most optimum-slitting pattern for the HR Coil. The Pull through HR slitting line cuts the rough edges of the HR coils. PICKLING After the HR slitting. order priority etc. Minimum carryover of chloride. the route. which the coil has to take. This activity is being done manually at present by PRODUCTION PLANNING & CONTROL department. The HR Slitter has a production capacity of 20 tonnes/hr. It offers the following Advantages: Removes ferrous scales from the surface of the HR Coils. hence more adaptable to quick changeovers. A hot air blower at the end dries off the excess water on the strip.1). the coil is sent for cold rolling. After the pickling operation. 2). slitting it into narrower widths. which accompanies the coil. where it can be slit in maximum 4 widths. Minimal set–up. The widths are decided based on factors like minimization of slit loss. The pickling line uses three acid tanks and three rinse tanks. is predetermined. HR (Hot Rolled) SLITTER The HR Coil is first sent to the HR Slitter. A 4 digit unique code is assigned to the HR Coil. C and D is added to this number after the coil is slatted.
Soaking and Controlled cooling of a Coil in a nonoxidizing atmosphere. which makes the coils brittle. It provides desired finishes such as Matt. This process can be carried out on all 3 rolling mills. The mills give flat strip shape. mirror etc. It offers the following Advantages: Skin Passing removes stretcher strain or Luder Lines. Rolling also leads to increased hardness. This process renders the strip soft and restores the ductility and formability. and available capacity. matte. . 4). NITROGEN ANNEALING. to the coil. There are two types of annealing: HYDROGEN ANNEALING. depending on the customer requirements. The rolled coils have to be rewound to decrease the tension. pass schedule storage and auto intermediate slow down. minimized edge drops and thinner gauges. Imparts flatness to the strip. SKIN PASS After Annealing the coil is sent for skin pass. 4Hi or 6Hi mill.3). ANNEALING Annealing is a process of Heating. ROLLING Rolling can be done either in 6Hi mill or in 4Hi mill depending upon the desired thickness. The 6-Hi mill has automatic gauge control. This can be done either on 2Hi.g. Bright on the strip surface. 5). This Process imparts a surface finish for e.
Depending on the type of product and customer’s requirement some of these processes can be skipped or repeated. This is the complete description of the process route. and subsequent dispatch. and the previous identity is lost after this process. The slit coils are again allotted a new number. CR(Cold Rolled) SLITTER After the skin pass the coil is sent to CR slitting machines. 7). 8). PACKING The final process is packing of coils and strips.6). Other considerations here are the inner and outer diameter and number of coils. . It is not necessary for the coil to go through all the processes mentioned. CUT TO LENGTH If the customer requires strips as final goods then the coils are sent to Cut to Length (CTL) machines which cut the coil in the desired length of the strips.The length can vary from 400mm to 3500mm.
Electric steel (Laminations. Cable tape. Transformers and Radiators. Bicycle and bicycle components. ovens. Domestic appliances (Washing machines. typewriters. Some of the common applications are detailed below:Automobiles & Auto Components.R. switch gears). fans. Bearings. Division to meet a variety of uses. picture tube frames. meters. Furniture. Shutters. stoves. sewing machines. grills etc) Office automation products (Computer components. Photostat machine components etc) . Refrigerators. TV chassis. toasters. Pipes and Tubes.PRODUCT APPLICATIONS Cold rolled steel strips are manufactured by C.
20. 23. 2. 8. 9. 24. KAPURTHALA INDO ASIAN FUSEGARS LIMITED PGT COMPONENTS LIMITED AGRO ENGINEERING WORKS/ASIAD ENGINEERS HORIZON INDUSTRIES PRODUCTS JAY YUSHIN LIMITED DHANJAL ENGINEERING LIMITED MULTITECH PRODUCTS MITASO APPLIANCES LIMITED . 18.MAJOR CUSTOMERS OF NICE EXPORTS CR DIVISION 1. 10. 5. 16. 11. 19. 15. 12. 14. 3. 13. 6. 4. MARUTI UDYOG LIMITED ESCORTS LIMITED (MSD) ESCORTS LIMITED (TRACTOR DIVISION) ESCORTS LIMITED (YAMAHA MOTOR CYCLES DIVISION) HERO HONDA MOTORS LIMITED TECHNICO IINDUSTRIES (P) LIMITED GABRIEL INDIA LIMITED GODREJ GE APPLIANCES LIMITED MANDAP INTERNATIONAL LIMITED HERO CYCLES LIMITED LOHIA MACHINES LIMITED MOONLIGHT AUTO (P) LIMITED BHURJEE MACHINE TOOLS SHEET COMPONENTS/PIONEER AUTO (KAY JAY) HAWKINS COOKERS LIMITED RAIL COACH FACTORY. 17. 21. 22. 7.
ELECTROLUX INDIA LIMITED TECUMSEH PRODUCTS INDIA LIMITED BAJAJ TEMPO LIMITED BAJAJ AUTO (ANCILLARIES) INDICA (ANCILLARIES) TECH AUTO LIMITED DAEWOO MOTORS LIMITED (ANCILLARIES) .25. 29. 43. 37. 45. 44. 38. 31. 35. 34. 30. AUTOMOTIVE COMPONENTS SDL AUTO PVT. PERFECT WHEELS SETHI INDISTRIAL CORPORATION R. 36. 27. 48. 46. (FOR CAR SEAT COMPONENTS) JBM TOOLS LIMITED SHIVANI LOCKS (P) LIMITED VENUS METALS/VENUS STAMPINGS VICTORA TOOLS OMAX ENGINEERS EMM KAY INDUSTRIES INTERNATIONAL ELECTRONIC DEVICES LIMITED (IEDL) STEEL TUBES OF INDIA LIMITED AUTO TECH AUTO MAX (UNIT OF OMAX AUTO LIMITED) HIMACHAL FASTENERS LIMITED (VENDORS FOR PUROLATOR) 40. 42. LTD.R. 32. 41. 47. 39. NATIONAL ENGINEERING INDUSTRIES LIMITED BPL (INDIA) LTD. 33. 28. 26.
As per Marketing Department this method was the suitable for the project. and passed by our HOD Marketing. After decision about the sampling.) 2. It is a blue print according to which research is to be conducted. the questionnaire was designed and the respondents were contacted to answer the question. Survey Method: The Survey Method was selected to obtain the needed information by asking the questions to the respondents through the Questionnaire developed. This process of getting answer is known as interviewing. Wording of questionnaire (It must be such that it extract desired information accurately and unbiased.RESEARCH METHODOLOGY The Research Design is the basic framework. The primary data is collected with the help of Questionnaire. . For carrying out my research work. I carried out survey and respondents were contacted at their places. Ability and willingness of the respondent to give accurate and unbiased information. Surveys are generally conducted both in qualitative and quantitative researches. which provides the basic guidelines for the Research process. Two significant factors affect the effectiveness of survey methods are: 1.
thus I have taken a proper sample in proportion of various industries giving due weight age to number of various type of industries using C.) Steel Strips/Sheets.Method Used in conducting survey: Personal Interview: Personal interview is the process of communication where face to face contact between the investigator and the respondent is established. It is the conversation arranged for the purpose of obtaining views of the respondent on the topic of interest to the interviewer. he establishes a close rapport with the respondent and motivates him or her to answer all the question satisfactory. NUMBER OF AUTOMOBILE INDUSTRY = 27 NUMBER OF BICYCLE INDUSTRY = 21 NUMBER OF OTHER INDUSTRY = 12 .R.Steel Strips/Sheets in Ludhiana.R. Under this method the investigator presents the questionnaire in person at office of the respondent. Being active participant. Samples: Since I have to make a survey of various type of industries in Ludhiana which are using Cold Rolled (C.
R. The price should be competitive with the other suppliers. . The third most important factor is Credit policy of the company. Quality should be used to cover the price. There are some Suggestions. Communication channels should be improved for providing the maximum satisfaction. peeling off etc. These are: Prices should be competitive. which should be considered in the future for better customer satisfaction. The second most important factor is delivery system and price. More customers will be attracted towards the products if quality parameters such as surface finish. Lifting of Material should quickly after the sale for better customer satisfaction Better credit facility should be given to the customers In future to attract the new customers Discount should be given. Better credit facility should be given to the customers and payment norms should be simplified. Delivery should be on time as per Quantity scheduled. are improved upon by getting continuous feedback on the quality and other services provided by the company. Delivery and Rate reduction should be made to further increase the market share and to attract the new customers of C. Improvement in quality.SUGGESTIONS & RECOMMENDATIONS The customers of CR Steel Strips/Coils perceive quality as the most important factor while purchasing. Steel Strips/ Sheets. Services.
There was no proper record maintained by the customers about the consumption of C.Some respondents have not given the proper answers.Time has also affected the research due to less availability of number of days. . Steel Strips/ Sheets. Respondent Biasness: .Some Respondents did not properly co-operated for giving answers.Some companies were very much favor in one company but they were unable to provide logic behind it. they are not aware of the objectives undertaken for research purposes. the basic reason was non-availability of time.R. Non Co-operation of some Respondents: . survey was conducted in few days. Time Constraint: . Technical Complexities: .LIMITATIONS OF STUDY Presence of Human Error: .
What type of products do you manufacture? TYPE OF PRODUTS Automobile parts Bicycle parts Others %AGE OF RESPONDENTS 45% 35% 20% NO. . Radiators. White Goods etc. OF RESPONDENTS 27 21 12 Others 20% Bicycle parts 35% Automobile parts 45% INFERENCE The graph represents that 45% of the industries that use cold rolled steel in Ludhiana are manufacturing automobile parts. 35% of the industries manufacturing bicycle parts & rest of them i.Ques1.e. 20% industries are manufacturing Stampings.
Hero Honda Motors Limited.33% of industries comes in 2nd tier that are vendors of 1st tier industries & 26. What is your status in supply chain? STATUS IN SUPPLY CHAIN 1st tier 2nd tier 3rd tier %AGE OF RESPONDENTS 50% 23.67 % industries comes in 3rd tier that are vendors of 2nd tier industries. Maruti Udyog Limited etc.Hero cycles.33% 26. .67% NO. OF RESPONDENTS 30 14 16 1 tier 2 tier 3 tier 27% 23% 50% INFERENCE The major amount of industries using cold rolled steel (50%) in Ludhiana comes in 1st tier means they are direct vendors of the industries like Nice exports.The 23.Ques2.
This analysis will be further helpful in analyzing the impact of market fluctuations among various industries. .STATUS IN SUPPLY CHAIN 1st tier 2nd tier 3rd tier AUTO INDUSTRY 19 6 2 BICYCLE INDUSTRY 8 5 8 OTHER INDUSTRIES 3 3 6 20 18 16 14 12 19 AUTO 10 8 8 6 6 4 2 0 1st TIER 2nd TIER 3rd TIER 3 5 3 2 6 8 BICYCLE OTHERS INFERENCE The graph indicates the distribution of various industries under different levels of supply chain.
Ques3. while making purchase. OF RESPONDENTS 36 24 NO 40% YES 60% INFERENCE Out of the total number of respondents 40% of the respondents said that market fluctuations do not affect their buying behavior while remaining 60% industries are affected by fluctuations in market. This shows that if there are market fluctuations. . then there is a change in buying behavior i.e. Do fluctuations in market affect your buying behavior? OPTION Yes No %AGE OF RESPONDENTS 60% 40% NO. the factors normally kept in mind are ignored & some other factors are considered keeping in view the prevailing circumstances.
. 3rd tier industries are the most affected ones when market fluctuations take place.1ST TIER 100% 80% 60% 40% 20% 0% AUTO BICYCLE OTHERS NO YES 100% 80% 60% 40% 20% 0% 2ND TIER NO YES AUTO BICYCLE OTHERS 3RD TIER 100% 80% 60% 40% 20% 0% AUTO BICYCLE OTHERS NO YES INFERENCE The above graphs show the effect of fluctuations in market on various industries classified according to their status in supply chain. Through these we can infer that most of the industries in 1st tier are not very much affected by market fluctuations while 2nd tier industries are less affected by the same.
OF RESPONDENTS 15 9 36 CR COILS 25% BOTH 60% CR STRIPS 15% INFERENCE The graph shows that most of the companies use both CR steel strips as well as coils in their manufacturing operations. CR strips are purchased by very less number of companies I. In which form do you buy steel? FORM OF CR STEEL CR Coils CR Strips BOTH %AGE OF RESPONDENTS 25% 15% 60% NO. .Ques4. So they specify their strip sizes according to their product requirements.e. most of those which do not have their own CTL (Cut to Length) machines.
white goods etc. 12.12 OTHERS 36 INFERENCE The percentage share of D (Drawing) Grade steel is much higher because it is the main material grade used in manufacturing of bicycles & Large amount of D Grade steel is consumed . MC-11. Other higher grade steels like DD.Ques5. Which grade(s) of steel do you purchase? GRADE D DD/EDD MC-11.12 OTHERS PERCENTAGE 44 36 15 5 GRADE 15 5 44 D DD/EDD MC-11. stampings. EDD. IF etc are used in manufacturing other components that require more strength like auto parts. Moreover D grade steel is cheaper than other grades as it has lesser carbon content. .
this attribute is given the lowest preference.5 0 4. OTHERS PRICE QUALITY DELIVERY TIME CREDIT PERIOD AFTER SALES SERVICE 2.01 4.11 AUTO IND.57 2.98 2.89 2.33 1.5 1 0.77 AUTO IND.28 3.44 4.25 3. Delivery time is another factor influencing their buying behavior followed by price and after sales service.5 2 1. It can be seen that in auto industry credit period allowed by the seller is given the lowest rank.Ques7.11 4. . This does not mean that this factor is not taken under consideration but it suggests that keeping in view the other factors.99 2. PRICE QUALITY DELIVERY TIME CREDIT PERIOD AFTER SALES SERVICES INFERENCE As the graph represents that most of the customers in Auto industry prefer Quality as the major factor while making purchase decision. Which factors do you consider the most while purchasing CR steel? (Rank 1 – 5 in order of preference) ATTRIBUTES AUTO INDUSTRY AVERAGE RANKING BICYCLE INDU.44 4.5 3 2. 5 4.22 2.22 1.01 2.89 2.33 1.5 4 3.29 2.86 4.
5 3 2. OTHER IND.25 3. after sales service & credit period allowed by sellers are major factors that influence the minds of customers while making purchase decision.5 2 1.29 1.77 OTHER IND.BICYCLE IND.5 4 3. PRICE QUALITY DELIVERY TIME CREDIT PERIOD AFTER SALES SERVICES INFERENCE As the graph indicates that in other industries. credit period allowed & least preference is given to after sales service. 5 4.5 3 2.98 2. 4. The other factor influencing choice of buyers is quality followed by delivery time.5 0 3.01 2. .99 2.86 2. Other factors are also closely held with all these attributes.57 BICYCLE IND.5 2 1.5 4 3.5 1 0. 5 4.01 2.28 PRICE QUALITY DELIVERY TIME CREDIT PERIOD AFTER SALES SERVICES INFERENCE It can be seen very clearly that in bicycle industry highest preference is given to Price as an attribute while making purchase.5 0 4.5 1 0.
etc. From which supplier(s) you are buying presently? % AGE MARKET SHARE HERO CRD 5 10 10 BHUSHAN STEELS 45 AVON CYCLES ATLAS STRIPS OTHERS 30 INFERENCE A major chunk of Ludhiana CR steel users purchase CR steel from NICE AND HERO CR Division. TATA. Followed by Avon Group. SAIL.Ques8. Atlas strips. As per the graph Bhushan Steels is a major competitor with almost 30% of total sales. .
. The capacity is expected to increase by approx.e. Do you have any expansion plans in near future? PERCENTAGE 20 YES NO 80 INFERENCE As we know that bicycle as well as auto industry is expanding rapidly. 80% of the companies said that they have expansion plans in near future i. within a period of 1-2 years. so most of the organizations have expansion plans to cater to the increasing future market demand.Ques9. This means that the future of CR Steel industry is very bright. 30%.
If encountered frequently. the customer may reduce the amount of purchasing from that particular seller and may shift to some other source.Ques11. steel being pitted. improper lamination. inappropriate thickness etc are faced by the customers. If at all. problems like rusting. What are the major quality related problems that you face while purchasing CR steel? Quality Related Problems Over Width Camber Rusting Thickness Lamination Grain opening Pitted No Problem Percentage 6 7 19 8 11 4 5 40 Sales OVER WIDTH 6 7 40 19 THICKNESS LAMINATION 8 5 4 11 GRAIN OPENING PITTED NO PROBLEM CAMBER RUSTING INFERENCE The above graph shows the major quality related problems as faced by customers. . Most of the customers do not face any kind of quality related problem.
66 71 RESPONSE TIME 40 ACCOMMODATION OF URGENCIES 65 . Conformance with specifications d. Accommodation of urgencies ATTRIBUTES PERCENTAGE RATING COMPANY IMAGE 81.66 DELIVERY CONFORMANCE WITH SPECIFICATIONS AFTER SALES SERVICES 52. Response time f. Delivery c. Company image b.66 91.Rating of NICE EXPORTS CR DIVISION IN TERMS OF FOLLOWING PARAMETERS a. After sales services e.
it is neither too good nor too bad. The company gets high rating in conformance with specifications i.66 71 40 65 PERCENTAGE RATING INFERENCE The graph indicates that NICE EXPORTS CRD enjoys a very good image from the customers’ point of view.PERCENTAGE RATING 100 90 80 70 60 50 40 30 20 10 0 81.66 52. The company was given average rating in terms of after sales service i. . delivering the material having exactly same chemical as well as mechanical properties as specified by the customers. This is a major factor considered while major factor that customers consider while making their purchase decisions.e.66 91. The company is very poor in giving proper response to customer’s grievances. It was seen that the customers shifted to other suppliers owing to poor delivery by NICE EXPORTS CRD.e. This factor may affect the company in a bad way. Delivery does not get much rating essentially due to recession as there has been a shortage of raw material in the market since couple of months. More than 80% customers believe that NICE EXPORTS CRD is a well known and reputed company.
DD e. What type of products do you manufacture? a. CTL (Cut To Length) Ques5. D d. No Ques4. In which form do you buy steel? a. MC-12 c. EDD f. What is your status in supply chain? a. What is your monthly requirement of CR steel grade wise? a. Bicycle parts c. 3 tier Ques3. IF Ques6. MC-11 b. CR Coil b. Which grade(s) of steel do you purchase? a. QUESTIONNAIRE Company name: ______________________________________________ Contact person: ______________________________________________ Address : ______________________________________________ ______________________________________________ Ques1.As the graph shows. 1 tier b. Yes b. DD/EDD _____________________________ MT . NICE EXPORTS CRD is quite good in accommodating urgencies as posed by the customers. Others Ques2. 2 tier c. D _____________________________ MT b. Do fluctuations in market affect your buying behavior? a. Automobile parts b.
___________________________Qty __________ MT Ques9. What quantity of your increased capacity of CR steel will you purchase from NICE EXPORTS Ltd (CR Division)? ____________________________________ MT (approx. Others _____________________________ MT Ques7. Quality c. From which supplier(s) you are buying presently? Please specify the quantity also. What are the problems that you face while purchasing CR steel? a. MC-11/12 _____________________________ MT d. Price b. After sales services Ques8. ______________________________________________ b. ___________________________Qty __________ MT c. Which factors do you consider the most while purchasing CR steel? (Rank 1 – 5 in order of preference) a.) Ques10. Lead time d. ______________________________________________ . Credit facility e.) Ques11. ___________________________Qty __________ MT b. No ____________________________________MT (approx. Do you have any expansion plans in near future & what will be your increased capacity? a. a.c. Yes b.
Accommodation of urgencies Date: (Signature) . Delivery h. After sales services j. Conformance with specifications i. Response time k. Company image g. ______________________________________________ b.Ques12. What are the suggestions that you can give to counter those problems?\ a. ______________________________________________ Rate Nice Exports Ltd (CR Division) in terms of following parameters: (Give rating from 1-5) 1 = Poor & 5 = Excellent f.
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