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A

PROJECT REPORT
ON

PRODUCT OPPORTUNITIES IN INDUSTRIES AND ANALYSIS OF CUSTOMER


SATISFACTION

FOR

AFCIL INDUSTRIES LIMITED, PUNE.

SUBMITTED TO UNIVERSITY OF PUNE.


IN PARTIAL FULFILLMENT OF 2 YEARS FULLTIME COURSE MASTER IN
BUSINESS ADMINISTRATION (MBA)

BY

MR.GAJENDRA ARUN SABNIS.

VISHWAKARMA INSTITUTE OF MANAGEMENT,PUNE.


Index

3
ACKNOWLEDGMENT
5
OBJECTIVES
7
EXECUTIVE SUMMARY
11
INDUSTRY OVERVIEW
15
COMPANY OVERVIEW
24
THEREOTICAL BACKGROUND
35
DATA ANALYSIS

FINDINGS 41

RECOMONDATION 42

2
ACKNOWLEDGMENT

I take the occasion to thank AFCIL INDUSTRIES LIMITED . For giving me an


opportunity to work on this project, which has immensely helped in gaining and
developing my knowledge and experience. I would like to thank my institute, VIM
to provide me such a wonderful opportunity.

I especially thank my project guide Mr.Yuvraj Lahoty for his valuable guidance,
co-operation and encouragement throughout the project.

I am grateful to Mr.Narendra Harke (Marketing Manager), Mr.Mohak Desarda


(Executive Director) and Mr.Manik Desarda (Managing Director) for providing
their valuable thoughts and inputs throughout the project and kindly accepting
our suggestion and recommendations.
I specially want to thank Mr.Deepak Kakade to help me in my work.

I will always remain indebted to My Family for their constant moral support and
advice, which has helped me in every way of life.
Lastly I would like to specially thank the subordinates and my all friends for their
valuable support.

Place-

Date- ( Sabnis Gajendra Arun)

3
OB JECTIVES

4
OBJECTIVES

Every work has its objective, and by taking that in to consideration work gets

complete. Objective means motto, reason behind the work.

There mainly two types of objectives:

Primary objectives

Secondary objective

Primary objectives

In PRODUCT OPPORTUNITIES IN INDUSTRIES AND ANALYSIS

OFCUSTOMER SATISFACTION there are two main primary objectives

Increase the sale volume from existing customer

Analysis of the customer satisfaction level

Secondary Objectives

Making regular follow up to existing customer.

Marketing the foundry chemicals and allied


The weakness of the company that lead to dissatisfaction of the
customers.

By taking these entire primary and secondary objectives into consideration, I


complete my project in Afcil industries limited.

5
EXECUTIVE SUMMA RY

6
EXECUTIVE SUMMARY

Introduction of project

In India Automobile industry is growing from last 5 years, so the industries which
relates, directly or indirectly to automobile industry is also growing. The market of
this industry increased tremendously from last 5 years.
Foundry product industry is one of the major industries which directly relate
automobile industry. As major casting plant are developing in India the foundry
product and chemical allied industry show high potential.
The major work of this project is on finding out the potential of foundry product
and chemical allied in industry under which,
1. Increase the sale volume from existing customer
2. making regular follow up
3. marketing the foundry chemicals and allied
4. Analysis of the customer satisfaction level
The project includes marketing the foundry chemicals allied product to the
industries which require this product for casting, and analysis of customer
satisfaction level.

Project Title
The title of the project is PRODUCT OPPORTUNITIES IN INDUSTRIES AND
ANALYSIS OFCUSTOMER SATISFACTION

7
WHY?

There are some specific reasons behind to choose this project for working under
the AFCIL INDUSTRIES LTD., They Are:

As automobile industries are growing, foundry; chemical allied product


industries are showing high potential.

The concept which I learned in marketing subject cleared while actually


working in company.

There are lots of potential in this industry, which help me to make


strong carrier in this industry.

Location

Afcil industries limited.


Regd .Office &works:
Gate no 907/2/4,
Sanaswadi, Tal- Shirur,
Dist-Pune.412208
Email:afcil@afcil.com&afcil_india@hotmail.com

Duration:
The duration of this project was 1st of June to 20th July2006. In this duration, I
work mostly in pune city, Ahmednagar,and kolhapur.

8
Result:

In this duration my finding was, there must be improvement in the management,


productivity, cost, customer satisfaction.

9
IN DUSTRY OVERVIEW

10
INDUSTRY OVRVIEW

The Indian Foundry Industry occupies a special place in shaping the country s
economy. India is currently among the 10 largest producers of ferrous and non-
ferrous castings and has over 6500 foundries in the small, medium, and large
scale sectors. Approximately 90% are in the small scale. India exports annually
above Rs.700/- crores worth of castings to countries like USA, U.K., Canada,
Germany etc.

Basic technologies have not undergone much change but the emphasis has
changed. The world has become more environmentally conscious and
technologies have to conform to more and more stringent environment norms.
The U.S. foundry population has declined by about one-third over the last 20
years largely due to the cost of legislative compliance. This has given the Indian
producers a good opportunity for export market.

Even with these improvements the export of castings from India amounted to
only one percent of the world requirement. In the near future there will be ample
scope for the Indian foundry Industry to forge strategic alliances with their
counterparts in the developed countries which are on the verge of closure
primarily due to three major reasons:
1. waste disposal and highly stringent pollution control
regulations,
2. high manpower costs, and
3. acute shortage of trained personnel to work in foundries.

11
This is where Indian foundries can make their presence felt in the international
market by approaching foreign foundries to source castings from India at more
economical prices and thus enhance their market share.

At present, the industry is growing at 6% a year; but it is set to increase to


over 20% by 2010.

With the new liberalized polices of Govt. of India, Foundries have taken a new
shape to cater to the present domestic and export demand of the country.

The Indian Foundry industry, witnessing an unprecedented boom and the foreign
outsourcing on the Indian foundries, is showing rapid growth.

The ever-increasing global competitiveness, vast potential of castings export,


and growing demand for castings in domestic market are all have resulted for the
growth in foundry industry.

India can also benefit from this phenomenon. The world market is estimated to
be in excess of US$ 10 billion. India has been witnessing an average growth of
more than 7% per annum over the last 7 years. However, its share in the world
market is still less than 1%. This is attributed to use of traditional and
obsolete technology.

World rank (2003): 6th


Production (2003): 4 million metric tons
Employment (2003): 500,000 employees
No. of establishments (2002): 5,000

A comparison of performance of Indian foundries with those in the developed


countries indicates that even though we are excellent in several areas, including
metallurgy, we need fast improvement in technology sphere.

12
That will bring vast scope for improvement in the management, productivity,
capacity utilization, and customer satisfaction and to meet global competition.

13
COMPA N Y OVERVIEW

14
COMPANY OVERVIEW

AFCIL INDUSTRIES LIMITED well known as Afcil, centrally located in PUNE,


INDIA was founded in 1975 under the able shoulders of our Chairman Mr.
Manik Desarda who have expertise in the field of foundry Industry since three
decades. AFCIL INDUSTRIES LIMITED is an ISO 9001-2000company.

Afcil is a leading Manufacturer & Exporter of Foundry Chemicals, Castings,


& Allied products, having over two decades of Experience in the manufacture
and export of a wide range of Foundry Chemicals, Castings and Allied products.

Afcil Foundry Chemicals Division has always dedicated itself to the


development and manufacture of a wide range of high quality Foundry
Chemicals, to enable Foundries to enhance the Quality of their Castings and
improve Productivity levels.

Currently company is having their manufacturing plat and administrative office at


sanaswadi. Now they are developing another plant for resin coated sand which is
one of the major materials which require for casting. Company is having very
strong customer base in
maharashtra,Gujrat,tamilnadu,madhyapradesh,Karnataka,Chattisgadh,Goa,Keral
a, Uttar Pradesh, Andhra Pradesh, Rajasthan, Punjab and In USA, UK, TURKI,
which is a having major automobile industry.

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Some of the major customers which company have:

TATAMOTORSLIMITED
BAJAJ TEMPO LIMITED
KIRLOSKAR BROTHERS LIMITED
KIRLOSKAR OILENGINES LIMITED
KIRLOSKARPNEUMATIOCSCO.LIMITED
SIMPLEX CASTING LIMITED, BHILAI.
BHARAT HEAVI ELECTRICALS LIMITED, HYDRABAD, BHOPAL, HARIDWAR.
SHANTHI GEARS LIMITED
BEEKAY ENGINEERINGAND CASTING LIMITED
BHILAI ENGG.CORP.LTD
SHRIRAM FOUNDRY LTD.
ASHTA LINERS PVT.LTD
WALCHANDNAGAR INDUSTRIES LTD.
CASPRO METALS LTD.
GREAVES COTTON LTD.
VIR ALLOYS
HOGNOUS INDIA
JAYANTHI CASTING
STAR CASTING
ONKAR FOUNDERS&ENG
ABHINAV ALLOYS.

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Products which Customer use:

No Company Name Products


1. Greaves cotton ltd Afcicoat-16,Afcifix-71,Afcirez,Afcicoat-31rfu
2. BHEL, Bhopal Afcifix-71,Afcihold-21,Afcifeed-121,Afcimol-
11rfu
3 Tata motors Afcihold-21
4 KPCL Afcicoat-71,Afcihold-21,Afcimol-11rfu
5 Simplex Casting Ltd. Afcicoat-51,Sleeves
6 SAIL Afcicoat-51,Sleeves
7 Bakaro Steel. Afcicoat-51,Sleeves
8 BHEL, Bhilai. Afcifeed-12
9 Vir Alloys Afcimol-81rfu,Sleeves,Afcifix-71
10 Hognous India Afcifeed-12
11 Jayanthi Casting Afcicoat-34,Afcimol-11
12 Star Casting Afcimol-11,Afcimix-21,Afcihold-21
13 Onkar Foundries Afcimol-81,Sleeves,Afcibreak-51
14 Abhinav Alloys Sleeve,Afcimol-81

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Products which company manufactures:

AFCIMOL

AFCIMOL is a range of solvent based inflammable & air drying mould & core
washes with graphite, Zircon, Magnesite & mixed ceramic filler for general-
purpose use depending on their individual application characteristics are
available in powder paste or ready for use form.

INTRODUCTION:

The use of mould & core wash has now become an important & accepted part of
foundry practice. This was not always the case, but the increased importance of
good surface finish on a castings & the realization of the greatly reduced cleaning
costs made possible by their use, have over the past few years, awakened
realization to the considerable advantages their regular use can show.

In the same way, too, the use of solvent based dressings in India largely
developed by AFCIL has long passed the experimental stage & is now accepted
as most satisfactory, fulfilling the long felt need for a material combining the
benefits of a dressing & skin drying agent.

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AFCICOAL

SAND ADDITIVES

AFCICOAL is a carbonaceous, low ash green sand additive, an excellent


substitute developed to overcome the following shortcomings of conventional
coal dust: -

1. Serious problems like contamination of Iron Pyrites slate & other


minerals, which are injurious to casting finish are eliminated by use of
AFCICOAL.
2. Ash content is maintained at minimum level to avoid reduction in
permeability and refractoriness of Sand usually faced due to coal dust.
3. Inconsistency in volatile matter content in coal dust is eliminated.
4. It is a free flowing powder & disperses easily with minimum mixing
effort.

FUNCTION:

AFCICOAL s high carbon producing ability forms a protective non wetting


barrier between the sand & the metal , resulting in castings free from surface
imperfections. It also acts as a buffer between sand grains, allowing the sand to
expand, thereby improving permeability, reducing expansion defects & blow-hole
formation.

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AFCIFIX
INTRODUCTION:
AFCIFIX is an inorganic, medium viscosity self setting adhesive which develops
a bond of moderate strength when used for jointing purposes. AFCIFIX varities
are greatly suitable for jointing half cores, repairing damaged cores & building
intricate core assemblies.

DESCRIPTION :
AFCIFIX is supplied in white / yellow / red colour paste form & is particularly
suitable for jointing moulds & cores produced by carbondioxide process. It has
good air setting properties when applied to cold cores & sets in about 1-2 hours.
Dressing may be applied over AFCIFIX joint without any ill effect.

AFCIBOND 31
INTRODUCTION:
AFCIBOND 31 is prepared from specially selected materials. These additives
are suitable for green sand molding & are recommended for all synthetic, semi-
synthetic and natural sand for iron, steel & non-ferrous castings.
Non-irritant & non-toxic sand additive. It is a superior quality sodium base binder.
It gives exceptionally high green & dry strength. It imparts excellent flow ability.
It has high thermal stability & lower rejects. It develops high cohesive strength &
maintains mould strength in pressure casting.
It gives sharp & strong mould edges & corners

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AFCIHOLD 21

AFCIHOLD is a perlite slag holding compound added to molten metal in the


ladles, prior to pouring the metals into mould.
AFCIHOLD is a granular material, and reacts with the slag in the ladle, forming a
viscous taffy layer at the metal interface covered by an insulating layer on the
top. This condition allows easy removal of the slag, where ladle skimming is
practiced and ensures a clean metal surface free from slag. An additional
advantage of addition of AFCIHOLD is its highly insulating property, where in it
forms an efficient insulating layer on the top of the metal which significantly
reduces radiant loss of heat from the metal surface, which if desired may be
retained until pouring time and then skimmed off.

AFCIFEED

AFCIFEED is a range of exothermic cum insulating compound to minimize the


heat losses due to radiation, from the exposed surface of the feeder head & also
acts as an insulating barrier, there by increasing efficiency of riser, resulting in
improved directional solidification used for ferrous & non - ferrous castings

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SPECIFICATION:

SR. NO. CODE. PRODUCT CHARACTERISTICS


NO.
1. AFCIFEED To minimize the heat
G011
11 losses & also increases
2. AFCIFEED feeding efficiency of riser
G012
12 resulting in improved
AFCIFEED directional solidification.
3.
G021 21 Used for ferrous & non
ferrous castings.
4. AFCIFEED
G051
51 Used for ferrous castings.

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THEROTICA L

BACKGROUND

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THERIOTICAL BACKGROUND

Marketing Concept:

The marketing Concept is essentially a point of view about business. It


enunciates that business is basically a need satisfying process and that business
must be managed keeping the consumer and his need as focus. The concept
prescribes that all goals of business, including profit, must be realized through
consumer orientation and generation of consumer satisfaction.

Some definitions of marketing:

Marketing is the performance of business activities that direct the flow of goods
and services from the producer to the consumer.

Marketing is the economic process by which goods and services are exchanged
between the maker and the user, their values determined in terms of money
prices .

Marketing is a total system of interacting business activities designed to plan,


promote and distribute need satisfying products and services to existing and
potential consumers .

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Direct Marketing

Direct marketing is demassified marketing; It deals with customers on a one-to-


one basis. In convention marketing, the marketer sells to a multitude of
customers treating them as a mass; he uses mass production, mass
communication and mass distribution devices. In contrast, in direct marketing,
the marketer approaches the customer individually, communicates with them on
a one to one basis and even offers products that are modified to suit the
requirements of the chosen customer. In other words direct marketing relies on
customized production. Even in sales promotion measures, while conventional
marketing opts for incentives on mass basis, direct marketing opts incentive for
individual basis. Direct marketing targets the individual customer and develops its
offer for him.

In direct marketing, the marketer sells to the customer directly; he reaches out to
them directly; communicates with them directly and also delivers the product
directly. The marketer knows his customer and has on his hands a specific profile
of each individual customer.
Direct marketing is interactive to a large extent. For example, while mass
marketing has to remain content with one way messages, flowing from firm to the
market, direct marketing enjoys the advantage of two way communication,
between the firm and every one of the customers. In fact here both sides are able
to seek and obtain clarifications in an interactive way.
In direct marketing, the marketer secures the sale directly from the customer and
enables the latter to receive the product without having visit to retail outlet.

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Direct marketing tackles all the component tasks of marketing such as customer
identification, product adaptation, packaging modification, distribution, price
negotiation, marketing communication, and sales promotion in an integrated and
compressed manner. In direct marketing it eliminates all intermediaries and
handles the consumer directly and in one action. It also reaches the product to
the consumer directly.

Direct marketing facilitates delivering near perfect solutions to customer s


problem s. As the marketer is able to contract the customer individually, he can
know exactly what the consumer wants and make it available to him.
It also supports accurate segmentation and sharper targeting of the market,
which in turns facilitates formulation of more fine tuned marketing strategies.

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Consumer Satisfaction

Creating and delivering better customer value is the only route by which firms
implement the marketing concept. Customer satisfaction is the central theme of
the marketing concept and it is achieved by delivery of customer value.

It is obvious that it is through its market offering that a firm extends the benefits
that he seeks from the offer and makes mental note of the total value provided by
the offer. The total weight he assigns to a product offer reflects the value he
perceives in it. The customer has to pay cost for acquiring this value. This cost
includes the price of the product plus other elements of cost to him, economic
and non economic. He is happy when the value exceeds the cost he incurs. And,
he gets satisfaction when on using the product. He finds that the value he
actually receives matches the value he assumed. The larger the value cost, the
greater is satisfaction. He compares the value cost gaps of competing offers and
selects the one that gives him the best trade off.

For the successful execution of marketing strategies or for translating the


strategies into meaningful purpose, it is essential to have a detailed knowledge of
the changing behavior of users of services. It is very essential that organization
well be aware of their behavior as it simplifies their task of creating and
simulating demand.
Users have values, perception, preferences and a behavior pattern, which are
the result of various influences. It is important to assess both behavior pattern
and users characteristics for in the recent years users have become more
discriminating in their needs for different products and brand changing. This
makes the marketers analyze their needs and identify how to improve marketing
products and communications to satisfy them.

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RESEARCH

Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on
a specific topic.
In fact research is an art of scientific investigation. a careful investigation or
inquiry specially through search for new facts in any branch of knowledge.
Some people consider research as a movement, a movement from known to
unknown .It is actually voyage of discovery.
According to Clifford woody research comprises defining and redefining
problems, formulation hypothesis or suggested solutions: collecting, organizing
and evaluating data; making deductions and reaching conclusion; and at last
carefully testing the conclusion to determine whether they fit the formulating
hypothesis. the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids
in construction of theory in the practice of an art. Research is thus, an original
contribution to the existing stock of knowledge making for its advancement. It is
the persuit of truth with the help of study, observation, comparison and
experiment .In short, the search for knowledge through objective and systematic
method of findings solution to a problem is research. The systematic approach
concerning generalization. As such the term research refers to the systematic
method consisting of enunciating the problem, formulating a hypothesis,
collecting the facts or data, analyzing the facts and reaching certain conclusions
either in the form of solutions towards the concerned problem or in certain
generalizations for some theoretical formulation. and the formulation of a theory
is also research.

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Objectives of research

The purpose of research is to discover answers to questions through the


application of scientific procedures. The main aim of research is to find out the
truth which is hidden and which has not been discovered as yet.

29
Market Research

Market research is a key to the evaluation of successful marketing strategies and


programmed. It is an important tool to study buyer behavior, changes in
consumer lifestyle, consumption pattern, brand loyalty and also forecast market
changes. Market research is also used to study competition and analyze the
competitor products positioning and how to gain competitive advantage.
To make market research effective, it is important that it has a linkage with
business strategy and should respond to future or emerging scenarios in the
market place.

The research Process:

1. Problem definition
2. Defining research objectives
3. Work out research design
4. Deciding on the source of data
5. Planning and deciding on data collection techniques and tool.
6. Analyzing data
7. Conclusion.

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Problem definition

This is starting point in the marketing research exercise. In problem definition, it


is important to be specific, avoid ambiguities and generalities. Care should be
taken not to define problems in too narrow a field as that may distract researcher
perspective.
Market research problem is information oriented, and in contrast to management
decision, problem is narrowly defined.
Once a problem is identified or recognized, it is important to understand exactly
what needs to be examined.

Statement of research objective


Once a problem is defined the next logical step is to state what the researcher
wants to achieve. This statement is called objective. To be meaningful and help
focus the researcher s attention, these objectives should be specific, attainable
and measurable.
The purpose of these objectives is to act as a guide to the researcher and help
him in maintaining a focus through the research.

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Research design

In this stage the marketing research process is deciding on the research design.
There are three types of research design namely:
Exploratory
Descriptive
Causative
Exploratory research: Exploratory research is conducted when the researcher
does not kno0w how and why a certain phenomenon occurs.
Descriptive research: Descriptive research is carried out to describe a
phenomenon or market characteristics.
Causative research: Causative research is done to establish a cause and effect
relationship.

Sources of data

There are mainly two sources of data-


Primary
Secondary

Primary sources refer to data collected directly from the market place-
customers, traders suppliers are often major sources. These are often reliable
data sources and help in overcoming limitation of secondary data. The problem
of in primary data is the cost, both in terms of money and time.
Primary data are of two types- census and sample
Census refers to the collecting from entire population.
Samples refer to a pie taken from population.
The decision on sample size is based on the time available to the researcher and
decision maker It is also depend upon nature of the problem or research design.

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Secondary sources of data refer to information that has been collected earlier by
someone else. Often this includes printed or published reports, news item and
industry. This include internal document like invoice, sales report, payment
history of customer and dispatch records.

Secondary data offers the advantage of economics of time and cost. It offers
the benefit of convenience to the researcher. In addition to this direct advantage,
secondary data offer a solution to the research problem.

Data collection:

Procedure of Data collection:

Survey-the most common procedure is the survey. The researcher has to


carefully select the instruments and method of surveying. These methods are
postal surveys, telephone survey, or personal contact.

Tool For data collection-

Questionnaire-This is the most popular tool for data collection. A questionnaire


contains questions that a researcher wishes to ask his respondents. It is
important that these questions be put in a language the customer understands
and find easy to answer.
It is important that questions are unloaded to avoid any research bias. it is also
important that the information collected must be believable and unbiased. Just as
researcher bias has to be avoided. Respondent bias must also be avoided.

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Data Analysis-The next stage is that of data analysis. it is important to
understand that raw data has no usage in marketing research. hence appropriate
analytical tools must be used. The most elementary is the arithmetic analysis
using percentile and ratios.

Conclusion-This is last step of the process where conclusion is carried out on


the basis of data analysis

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DA TA A N A L YSIS

35
Are you satisfied with product Quality?

No. of respondent Yes No

25 22 3

25

20

15

10

0
Yes No

88%of customers are satisfied with quality of product.

Yes
No

Interpretation: Most of the customers are satisfied with quality of the


product.

36
Are you satisfied with Price of the product?

No. of respondent Yes No

25 16 9

16
14
12
10
8
6
4
2
0
Yes No

64%of customers are satisfied with price of product.

Yes
No

Interpretation: Most of the customers are not satisfied with packaging of


the product.

37
Are you satisfied with Packaging of the material?

No. of respondent Yes No

25 9 16

16
14
12
10
8
6
4
2
0
Yes No

64%of customers are not satisfied with packaging of material.

Yes
No

Interpretation: Most of the entire customers are satisfied with dealing with
company.

38
Are you satisfied with credit time given by company?

No. of respondent Yes No

25 13 12

Yes
No

55%of customers are satisfied with credit time given by company.

Yes
No

Interpretation: Some customers want increase in credit time.

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Are you satisfied with overall dealing with company?

No. of respondent Yes No

25 24 1

Yes
No

Almost 95%customers are satisfied in dealing with company.

Yes
No

Interpretation: Reduction in price of the products recommends most of the


customer.

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Findings

According to data analysis,

Most of the customers are satisfied with quality of the product.

Reduction in price of the products recommends most of the customer.

Some customers want increase in credit time.

Most of the customers are not satisfied with packaging of the product.

Most of the entire customers are satisfied with dealing with company.

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Recommendation:

There is a need of fast improvement in technology sphere.

There is a need for improvement in the management, productivity,


capacity utilization, and customer satisfaction and to meet global
competition.

Management has to look and work on the cost of production. The efforts
have to take on reducing cost of production.

Improvement in the packaging of material must take place.

Customer relationship management must implement, because it help to


overall maintain the relationship with customer.

There is vast scope for products, so effective marketing strategy must


implement.

Proper planning, controlling will help overall increase sale of product.

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