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Perception of Customers Shriram Transport Finance PROJECT REPORT MBA MARKETING PDF
Perception of Customers Shriram Transport Finance PROJECT REPORT MBA MARKETING PDF
Perception of Customers Shriram Transport Finance PROJECT REPORT MBA MARKETING PDF
EXECUTIVE SUMMARY
services.
improvement of services.
The study will help the company to know their awareness among the
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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
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
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 the brand
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 helped
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Increasing competition as result of liberalization has led to continuous
aggressive marketing strategies has played a bid role in boosting the automobile
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 which
recognize that we need some help in making a purchase decision. People cannot
important attributes, such as price or quality, that the targeted customers want in
also associate quality and reliability with certain brand names. Companies
watch their brand identity closely, in large part because a strong link has been
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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 with
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
above the petty personal gains. It needs an attitudinal change. Looking towards
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-
overhead!.
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Remember that a customer always buys a product or service with a lot of
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
priority to those financial institutions which gives loans at lower rate of interest,
company rendering better performance from a long period of time with the
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PURPOSE OF THE STUDY:-
company to make proper marketing strategy to render good services and satisfy
the needs of the customers. The study will help the company to make proper
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OBJECTIVES OF THE STUDY:-
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
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
people first. This 'People First' business philosophy has earned them unstinted
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APRIL 2005:
JULY 2004:
UTI Bank picks up equity stake in two Shriram Group companies
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
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 over
the decades.
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
hire-purchase, insurance business, chit business but does not include any
institution which is a company and which has its principal business of receiving
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.
Repayment:
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In general repayment period is of 3 -4 years, however depending on the nature
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.
Commercial Users
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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.
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
Interest:
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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
installment payment.
TWO WHEELERS:
Eligibility Criteria:
1. Salaried Individuals
4. Partnership Entities
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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
face. As a company firmly grounded up a middle class ethos, we take our social
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 up
to class VII and student will progressively move up to higher secondary level.
FUTURE PLANS :
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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.
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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• Business World Compaq award fota Social Responsiveness instituted by
FICCI from the Hon’ble Vice – President of India Mr. Krishna Kant on
1999.
PRODUCT PROFILE
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1.TRUCK FINANCE
commercial vehicles.
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-
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 ICICI Bank, UTI Bank
regions in India.
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.
BUSINESS IN INDIA
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AREA OF OPERATION ALL INDIA
Branch offices 260
Employees 4000
Depositors 12.20 lakhs
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 684 crores
in this business.
ranging from as little as Rs.8000 to Rs. 100000 and with tenures ranging from
12 months to 36 months.
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 become
recent years not only indicated the usefulness of this savings instrument, but is
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
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 accounting
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 in
the client company’s business environment. The company’ risk profile is then
studied. Based on the results of these evaluations. The team then suggests the
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most cist effective, integrated insurance package that is perfectly suited to the
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 exploring the
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
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:
For preparing this project I have considered questionnaire as measuring tool for
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CHAPTER - III
CHAPTER III
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RESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:-
Table: 3.1
Diagram-3.1
100
100
80
60
Percent
40
20 0
0
Yes No
Responses
Yes No
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2. Source of finance for your HCV?
Table: 3.2
⇒ 19% respondents have taken loan from tata finance and 4% from
co-op banks.
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Diagram-3.2
70 61
60
Percent 50
40
30
19 16
20
10 4
0
Co-op banks STFC Tata finance Others
Responses
Table:3.3
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Total 100 100%
follows:-
Diagram-3.3
100 100
80
60
Percent
40
20
0 0 S1
Yes
No
Responses
Yes No
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4) How did you come to know about this company?
Table:3.4
of their friends.
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The same information is presented in the form of diagrammatically as follows:-
Diagram-3.4
38
40
35 32
30
24
25
Percent
20
15
10 6
5
0
Friends Agents Advertisements Others
Responses
Table:3.5
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Yes 84 84%
No 16 16%
Total 100 100%
STFC .
D iagram-3.5
No
16%
Ye s
84%
Y es No
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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:-
D ia g ra m -3 .6
50 42
40
28
30
Pecent
20 14 14
10 2
0
Hig h ly S a tis fie d Ne ith e r D is -S a tis fie H
d ig h ly d is -
S a tis fie d s a tis fie d /d is - S a tis fie d
s a tis fie d
Re sponse s
H ighly S atis fied S atis fied
N e ithe r s atis fied /d is -s atis fied D is -S a tis fied
H ighly dis -S atis fie d
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7) Do you require any changes in the documentation process?
Table:3.7
process at STFC .
Diagram-3.7
Yes
28%
No
72%
Yes No
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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:-
Diagram -3.8
50 44
40 34
percent
30
20 16
10 6
0
Very High High Moderate Low
Responses
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9) Are you satisfied by the percentage of finance provided by
STFC?
Table:3. 9
given by STFC .
Diagram-3.9
No
12%
Yes
No
Yes
88%
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10). Are you satisfied with the services offered by STFC?
Table:3. 10
Neither satisfied/dis-satisfied .
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The same information is presented in the form of diagrammatically
as follows:-
Diagram-3.10
35 32
29
30
25 20
Percent
20
15 10
10 7
5
0
Completely Satisfied Neither Dis-Satisfied Completely
Satisfied satisfied/dis- dis-Satisfied
satisfied
Responses
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11) What are the features that attracted you to borrow loan
from STFC?
Table:3. 11
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Diagram 3.11
100 84
80
Percent
60
40
6 10
20 0
0
Quick finance
documentatio
Low interest
Low EMI
rates
Easy
n
Responses
companies?
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Table:3. 12
⇒ 12% of the respondents rated Tata in the 1st place with other
2nd place.
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D iagram-3.12
30 26
25
20 18 18
14
Percent
15 12 12
10
5
0
Tata A shok S TFC HDFC ICICI SBI
Leyland
Re sponse s
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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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Diagram-3.13
60
48
50
40
Percent
30 22 24
20
10 4 2
0
Very good Good Neither Bad Very bad
good/bad
Re sponse s
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14. Are your queries cleared quickly?
Table:3. 14
⇒ 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.
Diagram-3.14
No
18%
Yes
82%
Yes No
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15. Are you satisfied with the repayment system of STFC?
Table:3. 15
STFC.
system.
Diagram-3.15
No
36%
Yes
64%
Yes No
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16. Do you recommend STFC to others?
Table:3. 16
others.
Diagram -3.16
No
32%
Yes
68%
Yes No
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17. Do you want to take finance in near future from STFC?
Table:3. 17
STFC.
from STFC .
Diagram-3.17
No
40%
Yes
60%
Yes No
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CONCLUSION
Less than anticipated growth in the face of intensifying competition and rising
satisfied with their services such as Quick finance, Easy documentation process
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.
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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