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Perception of Customers at Shriram Trans
Perception of Customers at Shriram Trans
EXECUTIVE SUMMARY
services.
improvement of services.
The study will help the company to know their awareness among the
The company can find out where their competitors stands in the minds
of the customers.
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The study will help the company to make proper marketing strategy for
Not single work is exception to the limitations every work has got its
city and it is not possible to make extensive study. It is assumed that the
RESEARCH METHODOLOGY:-
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INTRODUCTION
PERCEPTION OF CUSTOMERS TOWARDS SHRIRAM TRANSPORT
COMPANY LIMITED.
Like any other Financial products, sales of giving finance is largely dependent
on how well company plans out their marketing strategies which helps to
increase visibility and build a distinct brand image. Looking at the intense
role in making marketing strategies. Hence this study will provide the
company to what customers perceive about STFC. It will also help to find out
allowing the entry of foreign players. This is well supported by the economic
During the last decade, conscious efforts have been made to fine-tune state
policy to enable the Indian automobile industry realizes its potential to the
fullest. The freeing of the industry from this restrictive environment has
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Increasing competition as result of liberalization has led to continuous
The auto finance industry is expected to grow at 18.6% till ’09. Of that
used vehicle finance is expected to grow at 27% p.a, while new car and UV
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LITERATURE REVIEW
The world is full of stimuli. A stimulus is any unit of input affecting one or
more of the five senses sight, smell, taste, touch, hearing.The process by
important attributes, such as price or quality, that the targeted customers want
Customers also associate quality and reliability with certain brand names.
Companies watch their brand identity closely, in large part because a strong
link has been established between perceived brand value and customers
loyalty.
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Customer Perception Audits:
Every time you lose a customer, there’s a reason why. Do you really know
what your customers think about your business, your offerings, or your
service? Are they having good or bad experiences? Are you equipped with the
insight you need to improve customer satisfaction and loyalty, and make the
changes that matter? Entrepreneurs are often too busy to really take the time to
tap into what customers are really thinking. But customers hold the key. They
know what you need to do to dramatically increase the value you deliver to
them. Why keep this data a secret? Uncovering and understanding it will give
you what you need to be the best, generate higher sales and referrals and earn
repeat business.
the experiences your customers are having, analyzes the data, and provides
improvements, with the goal of closing the gap between the service that is
customer today is not only very demanding but also likes to know the
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relationship between the supplier of goods and services and its relationship
depends the guarantee and warranty terms to which the customer is entitled. A
customer expects trouble free service during the guarantee period. Thereafter it
is expected that a product will last to its full productive life with minimum
down time and the vendor will provide the required support service to ensure
foreseen in immediate future. Market forces will have to play the game with
only customer in mind if India has to make global presence. There is little time
in hand as we are having challenges from all sides. Small nations like Korea,
Taiwan, Singapore etc. have already surpassed us. These nations are working
on a vision and resultant plans. It is the right time for market players to
pamper the customer. As the saying goes, the four deadly sins of corporate
else is overhead!.
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Remember that a customer always buys a product or service with a lot
satisfied when Performance does not match with Expectations. Now this
expectation is what has been derived from perception. Perception is not good
or bad, right or wrong, it is just the way someone judges an experience based
on their value system of what they believe should happen. Since people are
unique, each of their perceptions are unique .On the other hand each situation
is a "point of contact" with an employee that will tell the customer a "truth"
about the company's idea of customer service. Each situation will create
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STATEMENT OF THE PROBLEM:-
The present day market is flooded with a variety of Non- banking and
Time has become talk of the town therefore the customers give utmost
only company rendering better performance from a long period of time with
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PURPOSE OF THE STUDY:-
satisfy the needs of the customers. The study will help the company to make
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1. To know the perception of customers towards Shriram Transport
improvement of services.
conclusions.
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CHAPTER – II
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COMPANY OVERVIEW:-
Branches and Service Centres, in India's premier financial services chain. This
company is the largest player in Truck Financing and Chit funds in the Indian
subcontinent.
The group, having an annual turnover of Rs. 6,000 crore (USD 1.3
Components.
agents nationwide who reach out to its customers in even the most remote
areas.
The Shriram Group's business ventures are built on providing the most
putting people first. This 'People First' business philosophy has earned them
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HISTORY AND MILESTONE:
APRIL 2005:
JULY 2004:
17MARCH 2003:
Corporate Citizenship.
DECEMBER2002
Shriram Group enters into strategic alliance with Citicorp Finance and
31AUGUST2002
Shriram Group ties up with UTI Bank for Retail Truck Financing
Scheme to offer low cost loans for purchase of new or used trucks to transport
operators.
7MAY2002
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4FEBRUARY2000
15DECEMBER1999
division became the first Indian company to win the Indian Drug
Manufacturers Association
27 MARCH1986
Shriram City Union Finance Ltd. Incorporated for cars and two-
wheelers.
12MARCH198
13JUNE1979
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VISION, MISSION AND VALUES:
people first.
The Shriram Group set out with the objective of reaching out to the
common man with a host of products and services that would be helpful to
him in his path to prosperity. Over the decades, the Group has achieved
needs of the common man, by offering him high quality and cost-effective
products & services, are the values driving the organization. These core values
are deep-rooted within the organization and have been strongly adhered to
customer. It is this guiding philosophy of putting people first that has brought
the Group closer to the grassroots and has made it the preferred choice for all
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NON-BANKING FINANCIAL COMPANY (NBFC) – A GENERAL
SCENARIO
under the Companies Act, 1956 and is engaged in the business of loans and
leasing, hire-purchase, insurance business, chit business but does not include
banking institution which is a company and which has its principal business of
non-banking company).
NBFCs are doing functions akin to that of banks, however there are a few
differences:
ii. It is not a part of the payment and settlement system and as such cannot
iii. Deposit insurance facility of DICGC is not available for NBFC depositors
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COMMERCIAL VEHICLE
balance transfer on high cost loans, top up on existing loans, Extend product,
Any individual / Partnership firm / company with more than 2 years business
How much?
Loan amount can vary from a few thousands to crore depending upon the
specific requirement.
Funding can be up to the extent of 100 % of the chassis, body funding can be
over an old high-interest loan and converting it into low interest loan.
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Repayment:
of the loan.
Interest:
Interest is charged on a flat rate based on the scheme applicable for the
particular product.
Farm equipment loan has also a big chunk in the vehicle finance.
Eligibility :-
Agricultural Users
Any individual aged above 21 years at the beginning of the tenure and below
65 years by the end of the tenure; involved in agriculture for the last 5 years.
Having minimum 2 acres of land with its value at least twice the loan
amount.
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Commercial Users
Any individual aged above 21 years at the beginning of the tenure and below
65 years by the end of the tenure; involved in business for the last 3 years.
Loan Amount:
valuation of the land being mortgaged, income of the customer and tenure
desired. A maximum of 100% of the cost of the tractor, 75% of the cost of the
Documentation:
Agricultural use
and/or guarantor.
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Loan agreement, duly signed by the applicants and guarantor.
Commercial Use
and/or guarantor.
The rate of interest varies from customer to customer and depends on various
factors like land holding, loan amount, viability of the proposition and the
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Interest:
as the case may be. Every installment that is paid has a component of principal
installment payment.
TWO WHEELERS:
Eligibility Criteria:
1. Salaried Individuals
4. Partnership Entities
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Interest rates:Interest rate is charged on a monthly reducing balance .
Documents:
Identity Proofs
Residence Proof
Income Proof
CC billing statement
Bank passbook/Statement
No objection Certificate
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Recipient of outstanding woman professional for 2000 – 01 by FICCI
– FICCI Ladies organisation (FLO). The award was given by Ms. Sheila dixit
Shriram Social Welfare Trust (SSWF) that was set up in the year 1993. SSWT
Micro – credit financing through self- help groups for the marginalized
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OPRHAN AND DESTITUTE CHILDREN:
To swiftly help the poor and the needy to be self reliant and live with dignity,
not charity. The primary focus and beneficiaries of the Trust’s activities are.
women
develop
c. Micro credit financing through self help groups in 156 villages in Tamil
Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. In Andhra
Pradesh. Over 2000 children receive free education. Schools offer education
level.
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FUTURE PLANS :
a. To start six primary schools for the rural poor in the villages of Andhra
Pradesh.
six districts.
June 2005.
e. Empowerment of Women.
f. Greater leverage and status of SHG members in local communities and with
the state.
3. To lend credit at low interest rates to 3 lakh women below poverty line
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NATIONAL AWARDS WON
by FICCI from the Hon’ble Vice – President of India Mr. Krishna Kant
on 1999.
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PRODUCT PROFILE
1.TRUCK FINANCE
4. All India presence with a branch network of 260 offices and employing
'Shriram City Union Finance Ltd., the consumer finance arm of the group.
crore.
Our monthly business amounts to over Rs.25 crore in individual loans, ranging
months to 36 months.
Since its inception, we have financed over 2,15,000 white goods and two-
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wheelers, with over 90% of the business arising out of the non-metro markets.
This financing is backed by lines of credit extended by ICICI Bank, UTI Bank
Citicorp financial services Ltd. An arm citigroup has taken 14.9% equity stake
Limited in 2002.
FMO the Dutch Government owned financial services company has recently
picked up equity stake in SIL and STFC. The company has extended a long
Reliance Capital has also taken an equity stake in the two companies at a
premium.
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AN OVERVIEW OF THE SHRIRAM GROUP TRUCK FINANCING
BUSINESS IN INDIA
2.CONSUMER FINANCE:-
2002. through Shriram City Union Finance Ltd. The consumer arm of the
group. Within a short span o 2 years, we have managed a profile of over rest
loans, ranging from as little as Rs.8000 to Rs. 100000 and with tenures
Since its inception we have financed over 215000 white goods and
two wheelers with over 90% of the business arising out of the non metro
markets.
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This financing is backed by lines of credit extended by
3.CHIT FUNDS:-
Shriram chits is the largest chits fund in the country. We have grown to
Shriram Chits recent years not only indicated the usefulness of this savings
Chits one of the earliest investment instrument known to man, were founded
Shriram chits started its operations in the year 1974 with a single branch that
has quickly grown into trusted household name for making chits a viable form
Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka
and Maharastra, where has a reputation for timely disbursement of funds and
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Using state of the art computer systems/networks and a transparent
4.GENERAL INSURANCE:-
markets and has already aggregated business volumes in excess of Rs. 200
insurance, finance, law and other management discipline, who have vast
business and managerial experience. The company has handled major claims
for renowned clients. There have been several claim cases that were won even
then studied. Based on the results of these evaluations. The team then suggests
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the most cist effective, integrated insurance package that is perfectly suited to
The company plans to extend its customer base of the existing 500000 policy
holders to cross the 1 million mark by the end of financial year 2005-06.
5.LIFE INSURANCE:-
The shriram group plans to enter the life insurance segment 05. Am
application has already been filed with the IRDA for the same. We are also
6.STOCK BROKING:-
Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a
member of the National Stock Exchange , India and the Multi Commodity
Exchange. This unit has expended the network by 150% over the last year and
today it has more than 230 terminals spread across the length and breadth of
the country.
The company launched its new products like Derivatives and commodity
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Atimely payments and direct share transfer facility from NSE.
ORGANISATION CHART
BOARD OF DIRECORS
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SHIRAM TRANSPORT FINANCE COMPANY LIMITED
SAMPLING:
personal interview.
SAMPLE UNIT:
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I have taken the customers who are owning a truck or (HCV).
SAMPLING METHOD;
Sample size for this project is 100 customers who are truck owners.
RESEARCH DESIGN:
In this research design of this project the study was conducted by the survey
method.
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A. PRIMARY DATA:
Questionnaires
B. SECONDRY DATA:
Internet
MEASURING TOOLS:
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CHAPTER - III
CHAPTER III
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1) Do you own a HCV?
Table: 3.1
follows:-
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2. Source of finance for your HCV?
Table: 3.2
companys.
follows:-
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3. Are you aware of STFC?
Table:3.3
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Number of customers Percentage
Yes 100 100%
No Nil Nil
Total 100 100%
follows:-
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4) How did you come to know about this company?
Table:3.4
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The same information is presented in the form of diagrammatically as
follows:-
Table:3.5
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Number of customers Percentage
Yes 84 84%
No 16 16%
Total 100 100%
from STFC .
finance.
follows:-
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6) Are you satisfied with the documentation process at STFC?
Table:3.6
satisfied/dis-satisfied .
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The same information is presented in the form of diagrammatically
as follows:-
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7) Do you require any changes in the documentation process?
Table:3.7
process at STFC .
follows:-
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8. What do you feel about the interest rates at STFC?
Table:3. 8
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The same information is presented in the form of diagrammatically as
follows:-
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9) Are you satisfied by the percentage of finance provided by
STFC?
Table:3. 9
follows:-
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10). Are you satisfied with the services offered by STFC?
Table:3. 10
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The same information is presented in the form of diagrammatically
as follows:-
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11) What are the features that attracted you to borrow loan
from STFC?
Table:3. 11
follows:-
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12. How do you rate STFC with respect to other finance
companies?
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Table:3. 12
2nd place.
follows:-
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13. What is your experience when you approached the executives
of STFC for finance of HCV?
Table:3. 13
good behaviour.
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The same information is presented in the form of diagrammatically as
follows:-
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14. Are your queries cleared quickly?
Table:3. 14
While remaining 18% of them are telling their queries are not
cleared quickly.
follows:-
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15. Are you satisfied with the repayment system of STFC?
Table:3. 15
STFC.
system.
follows:-
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16. Do you recommend STFC to others?
Table:3. 16
to others.
follows:-
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17. Do you want to take finance in near future from STFC?
Table:3. 17
STFC.
from STFC .
follows:-
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CONCLUSION
Less than anticipated growth in the face of intensifying competition and rising
Commercial Vehicles.
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SUGGESTIONS
The firm should tap the un-tapped locations & market. This will help
The company should bring down their interest rates compared to other
competitor rates.
instalments.
in future also.
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CHAPTER-4
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Questionnaire
Dear Sir/Madam,
Yes [ ] No [ ]
Yes [ ] No [ ]
Yes [ ] No [ ]
If Yes specify _______________________________.
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8.What do you feel about the interest rates at STFC?
11. What are the features that attracted you to borrow loan from
STFC?
12. How do you rate STFC with respect to other finance companies
( 1 being highest and 6 being lowest)/
1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ]
Yes [ ] No [ ]
Yes [ ] No [ ]
Yes [ ] No [ ]
____________________________________.
Yes [ ] No [ ]
_______________________________________________________
________________________________________________.
Address:
_______________________________________________________
Occupation: _____________________________
** Thank You **
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