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BABASAB PATIL
EXECUTIVE SUMMARY
SCOPE OF THE STUDY: The study will help the company to know their awareness among the
consumers, the perception, brand position of the company.
The company can find out where their competitors stands in the minds
of the customers.
The study will help the company to make proper marketing strategy for
their weaker areas.
The study covers the customers owning HCV in Hubli city.
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LIMITATIONS OF THE STUDY:Not single work is exception to the limitations every work has got its
own limitations, so due to time constraint, my study confines only to Hubli
city and it is not possible to make extensive study. It is assumed that the
sample selected represents entire population.
RESEARCH METHODOLOGY:-
Data source
Area of Research
Research instrument
Sample plan
:
:
:
Hubli city
Questionnaire
Personal interview
Truck owners, Transporters
Sample unit
etc.
Stratified Random
Sampling method
Sample size
:
:
sampling
100 customers
INTRODUCTION
PERCEPTION OF CUSTOMERS TOWARDS SHRIRAM TRANSPORT
COMPANY LIMITED.
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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
competition it is become very necessary for company to make a name for
themselves in consumers mind. So the opinion of customers play an important
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
the brand image of STFC in the minds of customers.
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
would grow at 18.9% and 13.8%.
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
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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.
Customer Perception Audits by Coach Kevin captures information on
the experiences your customers are having, analyzes the data, and provides
meaningful, actionable recommendations on short-term and long-term
improvements, with the goal of closing the gap between the service that is
delivered and the service that customers expect.
relationship between the supplier of goods and services and its relationship
with the manufacturer or principal and its antecedents. It is on this 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
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down time and the vendor will provide the required support service to ensure
the customer is not put to trouble.
For adopting Japanese management or for customer oriented
management we should first have the willingness and a determination much
above the petty personal gains. It needs an attitudinal change. Looking
towards present socioeconomic and political conditions such change is not
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
management-complacency, blindness, megalomania, and greed. fit everything
else is overhead!.
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
expections of what the next experience will probably be like.
STATEMENT OF THE PROBLEM:The present day market is flooded with a variety of Non- banking and
as well as banking financial institutions as many as if not more than
companies like SHRIRAM TRANSPORT FINANCE COMPANY, Tata
Finance, Sundaram finance etc. are marketing their products.
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Time has become talk of the town therefore the customers give utmost
priority to those financial institutions which gives loans at lower rate of
interest, quick loans, documentation, percentage of finance etc. which have
been exerting influence on the playing decision of the consumer.
PURPOSE OF THE STUDY:The main purpose of the study is to understand the perception of customers
towards SHRIRAM TRANSPORT FINANCE COMPANY which will help the
company to make proper marketing strategy to render good services and
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satisfy the needs of the customers. The study will help the company to make
proper strategies and emphasize on their weaker areas.
SCOPE OF THE STUDY :The scope of the study covers the customers of SHRIRAM TRANSPORT
FINANCE COMPANY and other competitive companies in Hubli city Truck
owners, Transport companies etc.
OBJECTIVES OF THE STUDY:1. To know the perception of customers towards Shriram Transport
Finance Company Limited to improve the quality of service.
2. To know whether the customers are satisfied with the present
services of the company.
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CHAPTER II
COMPANY OVERVIEW:Established in the year 1974, the Shriram Group, comprising 750
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.
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The group, having an annual turnover of Rs. 6,000 crore (USD 1.3
billion), has a significant presence in the Insurance Consultancy, Consumer
Durable Finance and Stock Broking businesses. It also have diversified
investments in areas such as Information Technology, Pharmaceuticals,
Property
Development,
Project
Engineering,
Packaging
and
Auto
Components.
17MARCH 2003:
Shriram Investment Limited received the Mother Teresa Award for
Corporate Citizenship.
DECEMBER2002
Shriram Group enters into strategic alliance with Citicorp Finance and
Cummins Auto Services
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
Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional"
for the year 2002
4FEBRUARY2000
Shriram Recon Trucks incorporated as India's first corporate network for
selling reconditioned used trucks.
15DECEMBER1999
Medicorp, the flagship company of Shriram groups pharmacy
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division became the first Indian company to win the Indian Drug
Manufacturers Association
27 MARCH1986
Shriram City Union Finance Ltd. Incorporated for cars and twowheelers.
12MARCH198
Shriram Investments Ltd. Incorporated
13JUNE1979
Shriram Transport Finance Company Ltd. Incorporated
achieved
leasing, hire-purchase, insurance business, chit business but does not include
any institution whose principal business is that of agriculture activity,
industrial activity, sale/purchase/construction of immovable property. A nonbanking institution which is a company and which has its principal business of
receiving deposits under any scheme or arrangement or any other manner, or
lending in any manner is also a non-banking financial company (Residuary
non-banking company).
DIFFERENCE BETWEEN BANKS & NBFC ?
NBFCs are doing functions akin to that of banks, however there are a few
differences:
i. A NBFC cannot accept demand deposits;
ii. It is not a part of the payment and settlement system and as such cannot
issue cheques to its customers; and
iii. Deposit insurance facility of DICGC is not available for NBFC depositors
unlike in case of banks.
COMMERCIAL VEHICLE
It is the funding of products include, trucks, buses, tippers, light
commercial vehicles, pick ups, 3 wheelers, etc.
Range of services: funding of new vehicles, refinance on used vehicles,
balance transfer on high cost loans, top up on existing loans, Extend product,
working capital loans & other banking products.
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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
extended on special requirement & on the past experience.
Generally undertaken is Hypothecation funding. They are also taking
over an old high-interest loan and converting it into low interest loan.
Repayment:
In general repayment period is of 3 -4 years, however depending on the nature
of the deal the tenure can vary from 6 - 60 months.
The repayment schedule & the amortization schedule is sent on disbursement
of the loan.
Interest:
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Interest is charged on a flat rate based on the scheme applicable for the
particular product.
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.
Owns at least one tractor or commercial vehicle.
Owns either a house or an office or at least 2 acres of land.
Has a permanent phone connection either at office or at home.
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Loan Amount:
The loan amount varies from customer to customer depending on the
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
trailer and 50% of the cost of the implements is funded.
Documentation:
Agricultural use
Application form with photograph of the customer and all co applicants
and/or guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Land records of the borrower/s.
Land valuation and title search report of the land.
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Commercial Use
Application form with photograph of the customer and all co applicants
and/or guarantor.
Proforma Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following) :
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Interest:
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis
as the case may be. Every installment that is paid has a component of principal
as well as interest. Interest is charged on the principal outstanding after every
installment payment.
TWO WHEELERS:
Two wheeler finance is comparably Simple, Friendly and Quick.
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Eligibility Criteria:
1. Salaried Individuals
2. Self Employed Individuals
3. Pensioners, Housewives & Students
4. Partnership Entities
5. Private Limited Companies
6. Public Limited Companies
Bank passbook/Statement
No objection Certificate
Micro credit financing through self- help groups for the marginalized
FUTURE PLANS :
a. To start six primary schools for the rural poor in the villages of Andhra
Pradesh.
b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in
six districts.
c. Immediate Plans: to start two schools in Cudapah and Guntur districts in
June 2005.
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PRODUCT PROFILE
1.TRUCK FINANCE
1. Shriram Truck Financing Companies. The wheels of progress.
2. Largest NBFC in the country exclusively engaged in financing of
heavy commercial vehicles.
3. Monopoly position in financing of used vehicles.
4. All India presence with a branch network of 260 offices and employing
over 4000 people.
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Our monthly business amounts to over Rs.25 crore in individual loans, ranging
from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12
months
to
36
months.
Since its inception, we have financed over 2,15,000 white goods and twowheelers, 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
and Development Credit
THE GROUP COMPANIES ATHAT CATER TO TRUCK FINANCING
NEEDS A DIFFERENT PARTS OF THE COUNTRY ARE
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FMO the Dutch Government owned financial services company has recently
picked up equity stake in SIL and STFC. The company has extended a long
term debt of 6 million Euros each to the two companies.
Reliance Capital has also taken an equity stake in the two companies at a
premium.
AREA OF OPERATION
ALL INDIA
Branch offices
260
Employees
4000
Depositors
12.20 lakhs
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Agency Force
Funds managed
Net worth
Stock Listing
2.CONSUMER FINANCE:We entered the consumer Durable Finance Business business in early
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
684 crores in this business.
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.
Shriram chits is the largest chits fund in the country. We have grown to
become a trusted household investment option. The growth registered by
Shriram Chits recent years not only indicated the usefulness of this savings
instrument, but is also a reflection our customers trust in.
Chits one of the earliest investment instrument known to man, were founded
by the enlightened communities of India. These have, ever since, worked to
the advantages of communities that are batting scarce capital resource.
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
of saving and borrowing to all sections of the social.
Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka
and Maharastra, where has a reputation for timely disbursement of funds and
excellent customer services which differen tiates it from other companies.
Using state of the art computer systems/networks and a transparent
accounting system, Shriram Chits have transformed this contemporary mehod
of savings into an attractive personalised to banking system.
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
exploring the possibilities
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.
It has a retail customer base of around 50000.
The company launched its new products like Derivatives and commodity
Trading in early 2004.
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ORGANISATION CHART
BOARD OF DIRECORS
Managing Director
S. Venkatakrishnan
Executive Director
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Umesh G Revankar
Executive Director
K.R.C Sekhar
Director
S. Ranganathan
Dr. T S Sethurathnam
K. Prakash
Officer
SAMPLING:
Sample plan to know the perception of customers in this project is through
personal interview.
SAMPLE UNIT:
I have taken the customers who are owning a truck or (HCV).
SAMPLING METHOD;
I have used Non- probability sampling i.e. Stratified Random Sampling.
Sample size for this project is 100 customers who are truck owners.
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RESEARCH DESIGN:
In this research design of this project the study was conducted by the survey
method.
A. PRIMARY DATA:
The data collected from the company persons.
Questionnaires
B. SECONDRY DATA:
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MEASURING TOOLS:
For preparing this project I have considered questionnaire as measuring tool
for collecting the data.
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CHAPTER - III
CHAPTER III
RESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:-
Yes
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Number of customers
100
Percentage
100%
No
Total
Nil
100
Nil
100%
The information presented in table3.1 reveals that: Almost all respondents are owning Heavy Commercial Vehicle.
The same information is presented in the form of diagrammatically as
follows:-
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Number of customers
4
61
19
16
100%
Percentage
4%
61%
19%
16%
100%
The information presented in table3.2 reveals that: 61% respondents have taken loan from STFC .
19% respondents have taken loan from tata finance and 4%
from co-op banks.
While remaining 16% have taken from other finance
companys.
Yes
No
Total
Number of customers
100
Nil
100
Percentage
100%
Nil
100%
The information presented in table- 3.3 reveals that: Almost all respondents are aware of STFC .
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Number of customers
38
24
32
6
100
Percentage
38%
24%
32%
6%
100%
The information presented in table3.4 reveals that: 38% respondents have bought finance from STFC on the
advice of their friends.
24% will seek the advice of agents.
While 6% from others and 32% on the basis of Advertisements.
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Number of customers
84
16
100
Yes
No
Total
Percentage
84%
16%
100%
The information presented in table3.5 reveals that: 84% respondents are in favour of quick finance availability
from STFC .
While remaining 16% of them are not in favour of quick
finance.
The same information is presented in the form of diagrammatically as
follows:-
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Number of customers
28
42
Percentage
28%
42%
14
14%
14
2
100
14%
2%
100%
The information presented in table3.6 reveals that: 28% of the respondents are Highly Satisfied with the
documentation process at STFC , 42% of the respondents are
Satisfied and from the analysis 14% of them are Neither
satisfied/dis-satisfied .
Nearly 14% of the respondents are dis-Satisfied and 2% of
them are Highly dis-Satisfied .
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Yes
No
Total
Percentage
28%
72%
100%
The information presented in table3.7 reveals that: 28% of the respondents require changes in documentation
process at STFC .
While 72% of the respondents are Satisfied with the
documentation process at STFC .
The same information is presented in the form of diagrammatically as
follows:-
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Number of customers
16
44
34
6
100
Percentage
16%
44%
34%
6%
100%
The information presented in table3.8 reveals that: 16% of the respondents are in favour that interest rate at STFC
is very high and 44% of them are in favour of High rates.
While 34% of them are in favour of moderate interest rates and
6% for low interest rates.
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STFC?
Table:3. 9
Number of customers
88
12
100
Yes
No
Total
Percentage
88%
12%
100%
The information presented in table3.9 reveals that: 88% of the respondents are Satisfied with Percentage of
finance given by STFC .
While 12% of them are not Satisfied .
The same information is presented in the form of diagrammatically as
follows:-
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Number of customers
10
32
Percentage
10%
32%
20
20%
29
29%
9%
100
100%
The information presented in table3.10 reveals that: 10% of the respondents are completely Satisfied with
the service offered y STFC, 32% of the respondents are
satisfied and from the analysis 20% o the respondents
are Neither satisfied/dis-satisfied .
Nearly 29% of them are dis-Satisfied and remaining 9%
of them are completely dis-Satisfied .
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11) What are the features that attracted you to borrow loan
from STFC?
Table:3. 11
Sources
Low interest rates
Easy documentation
Quick finance
Low EMI
Total
Number of customers
6
10
84
Nil
100
Percentage
6%
10%
84%
Nil
100%
The information presented in table3.11 reveals that: 84% of the respondents are attracted by quick finance.
10% of the respondents for easy documentation.
While remaining 6% for low interest rates.
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companies?
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Table:3. 12
Sources
Tate
Ashok Leyland
STFC
HDFC
ICICI
SBI
Total
Number of customers
12
18
26
18
14
12
100
Percentage
12%
18%
26%
18%
14%
12%
100%
The information presented in table3.12 reveals that: 12% of the respondents rated Tata in the 1st place with other
companys and 18% of them for Ashok Leyland and HDFC in
2nd place.
26% of them rated STFC in 3rd place.
Nearly 14% of them for ICICI in 4th place.
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Number of customers
22
48
24
4
2
100
Percentage
22%
48%
24%
4%
2%
100%
The information presented in table3.13 reveals that: 22% of the respondents are in favour of very good behaviour
from the executives of STFC , 48% of them are in favour of
good behaviour.
24% of them are in favour of Neither good/bad.
While 4% of them are bad and 2% very bad.
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Yes
No
Total
Number of customers
82
18
100
Percentage
82%
18%
100%
The information presented in table3.14 reveals that: 82% of the respondents are in favour that their enquiries are
cleared quickly at STFC .
While remaining 18% of them are telling their queries are not
cleared quickly.
The same information is presented in the form of diagrammatically as
follows:-
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Yes
No
Total
Number of customers
64
36
100
Percentage
64%
36%
100%
The information presented in table3.15 reveals that: 64% of the respondents are Satisfied with repayment system at
STFC.
While remaining 36% of them requires changes in repayment
system.
The same information is presented in the form of diagrammatically as
follows:-
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Yes
No
Total
Number of customers
68
32
100
Percentage
68%
32%
100%
The information presented in table3.16 reveals that: 68% of the respondents are in favour of recommending STFC to
others for taking loan.
While remaining 32% of them are not in favour of recommending
to others.
The same information is presented in the form of diagrammatically as
follows:-
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Yes
No
Total
Number of customers
60
40
100
Percentage
60%
40%
100%
The information presented in table3.17 reveals that: 60% of the respondents wants to take finance in near future from
STFC.
While remaining 40% of them are not in favour of taking finance
from STFC .
The same information is presented in the form of diagrammatically as
follows:-
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CONCLUSION
Less than anticipated growth in the face of intensifying competition and rising
costs, can hardly be expected to get the company foaming.
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SUGGESTIONS
The firm should tap the un-tapped locations & market. This will help
them in increasing the business. Rural places are advised
The company should bring down their interest rates compared to other
competitor rates.
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CHAPTER-4
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Questionnaire
Dear Sir/Madam,
1.Do you own a HCV?
Yes [ ]
No [ ]
STFC [ ]
No [ ]
( If no go to Question No:- 17 ).
Agents [ ]
No [ ]
High [ ]
Moderate [ ]
Low [ ]
If No specify _________.
11. What are the features that attracted you to borrow loan from
STFC?
Low interest rates [ ]
Easy documentation [ ]
Quick finance [ ]
Low EMI [ ]
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[ ]
Good [ ]
Neither Good/Bad [ ]
Bad [ ]
Very Bad [ ]
No [ ]
No [ ]
No [ ]
No [ ]
Name:
_______________________________________________________
Address:
_______________________________________________________
Occupation: _____________________________
Annual Income ______________________
Gender: Male [ ]
Female [ ]
** Thank You **
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