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FACTORS AFFECTING BUYING BEHAVIOUR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA A Project Report Submitted by GURIQBAL SINGH

Reg No !"#"#$#%""&

In partial fulfillment for the award of the degree Of MASTERS OF BUSINESS ADMINISTRATION IN MARKETING At

GURU NANA' DEV ENGINEERING COLLEGE LUDHIANA AUGUST (""&

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PREFACE I ee% !e%i"hte! to present my pro)e$t report on = FACTORS AFFECTING BUYING BEHAVIOR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA> is a matter o honor an! pri!e or me that I "ot a $han$e to un!er"o my Summer Trainin" in a $ompany %ike HERO CYCLE Lt9' 4CR D+?+8+o*7 In this perio! o six &eeks I "ot ami%iar to the rea% $on!itions o an or"ani-ation an! espe$ia%%y to the &ork $u%ture o su$h a .i" an! presti"ious "roup &hi$h has its name in the manu a$turin" o T@o )2ee,er8 an! many others pro!u$ts as &e%% as C-8to1er 8er?+ce8 The irst task or me &as to kno& a.out the $on$ept on &hi$h my pro)e$t &as .ase!' Then I ha! to set $riteria* on the .asis o &hi$h the a.o(e $on$ept &as (a%ue!' The !ata &as $o%%e$te! or ea$h o the parameter oun! responsi.%e in in %uen$in" the pur$hase !e$ision o the $ustomers throu"h Marketin" Resear$h 1ro"ram' +en$e* this pro)e$t ha! to .e $omp%ete! in the Six &eeks o time' As the time &as %imite!* so there is a possi.i%ity that some matters mi"ht not ha(e .een taken into $onsi!eration* .ut e(ery e ort has .een !one rom my si!e to in$%u!e e(ery ne$essary parameter an! in$%u!e &ho%e in ormation that I "ot rom the market !urin" sur(eys as &e%% as the marketin" Resear$h 1ro"ram'

GURIQBAL SINGH

CERTIFICATION

This is to $erti y that the resear$h pro)e$t entit%e! 2FACTORS AFFECTING BUYING BEHAVIOUR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA3 su.mitte! or the partia% u% i%%ment o re4uirement or the !e"ree o MASTERS OF BUSINESS ADMINISTRATION at GURU NANA' DEV ENGINEERING COLLEGE* 0u!hiana a i%iate! to PUN0AB TECHNICAL UNIVERSITY6 0ALANDHAR is a .ona i!e resear$h &ork $arrie! out .y Guri4.a% Sin"h o M'B'A un!er my super(ision an! that no part o this has .een su.mitte! or any !e"ree' The assistan$e an! he%p re$ei(e! !urin" the $ourse o the in(esti"ation ha(e .een u%%y a$kno&%e!"e!'

Mr PARAMPAL SINGH ASSISTANT PROFESSOR GURU NANA' DEV ENGINEERING COLLEGE LUDHIANA

DECLARATION

I here.y !e$%are that the pro)e$t tit%e! =FACTORS AFFECTING BUYING BEHAVIOUR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA> is an ori"ina% pie$e o resear$h &ork $arrie! out .y me' The in ormation has .een $o%%e$te! rom "enuine # authenti$ sour$es' The &ork has .een su.mitte! in partia% u% i%%ment o the re4uirement o Master o Business A!ministration to G-r- N.*.5 De? E*g+*eer+*g Co,,ege L-92+.*. a i%iate! to P-*j.A tec2*+c., -*+?er8+t3

P,.ceB D.teB

S+g*.t-reB G-r+CA., S+*g2 M B A 4(""!<#"7

EDECUTIVE SUMMARY In the a"e o ast $han"in" Marketin" strate"ies* $ustomer .eha(ior* ne& market

se"ments an! pro!u$t opportunities a%on" &ith sensiti(ity to $han"in" $ustomer nee!s* the +ero "roup !e(e%ops an! a!apts marketin" strate"y an! phi%osophy' As the +ero "roup is kno&n or its $omp%ete%y $ustomer5 !ri(en approa$h' For that (ery reason +ero ,y$%es ,RD un!er"oes this pro)e$t'

The main aim o the pro)e$t is to kno& the pur$hase $riteria 6 Buyin" Beha(ior o $ustomers o the ,o%! Ro%%e! Stee% Strips6 Sheets pro(i!e! .y the +ero ,y$%e ,'R' Di(ision an! use! in (arious in!ustries 7Automo.i%es* Bi$y$%e et$'8 in 0u!hiana'

The $ustomer/s per$ei(e 9ua%ity as the most important a$tor &hi%e pur$hasin"' More $ustomers &i%% .e attra$te! to&ar!s the pro!u$ts i 4ua%ity parameters su$h as sur a$e inish* pee%in" o et$' are impro(e! upon .y "ettin" $ontinuous ee!.a$k on the 4ua%ity an! other ser(i$es pro(i!e! .y the $ompany' The se$on! most important a$tor is !e%i(ery system an! pri$e' The pri$e shou%! .e $ompetiti(e &ith the other supp%iers' The thir! most important a$tor is ,re!it po%i$y o the $ompany' Better $re!it a$i%ity shou%! .e "i(en to the $ustomers an! payment norms shou%! .e simp%i ie!' 9ua%ity shou%! .e use! to $o(er the pri$e' Impro(ement in 4ua%ity* Ser(i$es* De%i(ery an! Rate re!u$tion shou%! .e ma!e to urther in$rease the market share an! to attra$t the ne& $ustomers o ,'R' Stee% Strips6 Sheets'

CONTENTS

CHAPTERS CHAPTER<# INTRODU,TION OF T+E 1REO:E,T RE;IE< OF 0ITERATURE OB:E,TI;E OF STUD= S,O1E OF STUD= CHAPTER<( ,OM1AN= 1ROFI0E CHAPTER<$ RESEAR,+ MET+ODO0OG= UNI;ERSE OF STUD= SAM10ING TE,+NI9UES 1ERIOD OF STUD= 0IMITATIONS OF STUD= S,O1E FOR FURT+ER STUD= CHAPTER<E ANA0=SIS OF TO1I, ,ON,0USIONS INFEREN,ES SUGGESTIONS # RE,OMMENDATIONS CHAPTER<F BIB0IOGRA1+= 9UESTIONNAIRE

CHAPTER<#

INTRODUCTION TO THE PRO0ECT The pro)e$t &as "i(en to me to stu!y the =FACTORS AFFECTING BUYING BEHAVIOR OF CUSTOMERS OF COLD ROLLED STEEL STRIPS/COILS IN LUDHIANA> So* the area o operation or me &as the MAR'ETING DEPARTMENT o the or"ani-ation' The irst task or me &as to kno& a.out the $on$ept on &hi$h my pro)e$t &as .ase!' Then I ha! to set $riteria* on the .asis o &hi$h the a.o(e $on$ept &as (a%ue!' The !ata &as $o%%e$te! or ea$h o the parameter oun! responsi.%e in in %uen$in" the .uyin" .eha(ior o the $ustomers thou"h Marketin" Resear$h 1ro"ram'

INTRODUCTION TO CONSUMER BEHAVIOUR The Business market is $omprise! o or"ani-ations that in some orm are in(o%(e! in the manu a$turin"* !istri.ution or support o pro!u$ts or ser(i$es so%! or other&ise pro(i!e! to other or"ani-ations' The amount o pur$hasin" un!ertaken in the .usiness market easi%y !&ar s the tota% spen!in" .y $onsumers' Be$ause the .usiness market is so %ar"e* it !ra&s the interest o mi%%ions o $ompanies &or%!&i!e that market ex$%usi(e%y to .usiness $ustomers' For these marketers un!erstan!in" ho& .usinesses make pur$hase !e$ision is $riti$a% to their or"ani-ation/s marketin" e orts' In some &ays un!erstan!in" the .usiness market is not as $omp%i$ate! as un!erstan!in" the $onsumer market' For examp%e* in $ertain .usiness market* pur$hase !e$ision hin"e on the out$ome o a .i!!in" pro$ess .et&een $ompetitors o erin" simi%ar pro!u$ts an! ser(i$es' Thus un%ike $onsumer markets* &here .ui%!in" a re$o"ni-a.%e .ran! is (ery important* or many pur$hase situations in the .usiness market this not the $ase' +o&e(er* in many other &ays .usiness .uyin" is mu$h more $omp%i$ate!' For instan$e* the !eman! .y .usiness or pro!u$ts an! ser(i$es is a e$te! .y $onsumer pur$hases 7$a%%e! !eri(e! !eman!8 an! .e$ause so many or"ani-ations may ha(e a part in $reatin" $onsumer pur$hases* a sma%% s&in" in $onsumer !eman! $an $reate .i" $han"es in .usiness pur$hasin"' Automo.i%e pur$hases are a "oo! examp%e' I $onsumer !eman! or $ars in$reases many $ompanies $onne$te! &ith the automo.i%e in!ustry &i%% a%so see !eman! or their pro!u$t an! ser(i$es in$rease' Un!er these $on!ition $ompanies &i%% rat$het up their operations to ensure !eman! is met* &hi$h in(aria.%y &i%% %ea! to ne& pur$hases .y a %ar"e num.er o $ompanies' In a$t* it is $on$ei(a.%e that an in$rease o )ust one or t&o per$ent or $onsumer !eman! $an in$rease .usiness !eman! or pro!u$ts an! ser(i$es .y i(e or more per$ent' Un ortunate%y* the opposite is true i !eman! !e$%ines' Tryin" to pre!i$t these s&in"s re4uires .usinesses to not on%y un!erstan! their imme!iate $ustomers .ut a%so the en! user* &hi$h as &e &i%% !is$uss* may .e &i%% !o&n the supp%y $hain rom &here the .usiness operates'

)HO MA'ES UP THE BUSINESS MAR'ETG There are mi%%ions o or"ani-ations &or%!&i!e se%%in" their pro!u$ts an! ser(i$es to other or"ani-ations' They operate in many in!ustries an! ran"e in si-e rom hu"e mu%tinationa% $ompanies &ith thousan!s o emp%oyees to one5person sma%% .usinesses' <ith su$h a %ar"e num.er o ori"inations an! in!ustries $ontaine! &ithin the .usiness market* a marketer $an o.tain a .etter pi$ture o &ho is in(o%(e! .y %ookin" at popu%ar .usiness $%assi i$ation systems set up .y internationa% "o(ernments* su$h as the North Ameri$an In!ustria% ,%assi i$ation system 7NAI,S8* &hi$h $o(ers ,ana!a* Mexi$o an! the Unite! States an! the Internationa% Stan!ar! In!ustria% ,%assi i$ations 7ISI,8* &hi$h is &i!e%y use! in Europe' These reports pro(i!e !es$riptions o hun!re!s o in!ustry $%assi i$ation'

S-pp,3 C2.+* Me1Aer8 The supp%y $hain $onsists o most%y or5pro it $ompanies en"a"e! in a$ti(ities in(o%(in" pro!u$t $reation an! !e%i(ery' Essentia%%y the $hain represents ma)or steps nee!e! to manu a$ture a pro!u$t that &i%% e(entua%%y .e so%! as a ina% pro!u$t' Ea$h mem.er o the supp%y $hain pur$hases pro!u$ts an! ser(i$es ena.%in" them to $arry out its .usiness o.)e$ti(es' <hen makin" pur$hase !e$isions supp%y $hain mem.ers may .e moti(ate! .y su$h a$tors as> 1ro!u$t $ost Return on in(estment Assuran$e o $onsistent supp%y Re$ipro$ity &ith supp%yin" irm

An examp%e o pur$hasin" o$$urrin" in the supp%y $hain in$%u!es>

Manu a$turin" an! 1%ant e4uipment In ormation Te$hno%o"y O i$es Supp%ies 1ro essiona% Business Ser(i$es* et$' B-8+*e88 U8er M.r5et8 Besi!es se%%in" ina% pro!u$ts an! ser(i$es to supp%y $hain $ompanies* se(era% a!!itiona% User markets a%so make pur$hases either or their o&n $onsumption or they .uy &ith the intention o re!istri.utin" to others' In these pur$hase situations the .uyer "enera%%y !oes not ra!i$a%%y $han"e the pro!u$t rom it/s rom &hen it &as pur$hase! rom a pro!u$ts manu a$ture'

BUSINESS MAR'ET V/S CONSUMER MAR'ETG

For marketers* the se%%in" en(ironment o .usiness markets present uni4ue%y !i erent $ir$umstan$es &hen $ompare! to se%%in" to $onsumers' At the .e"innin" o this tutoria% &e sa& t&o &ays in &hi$h $onsumer an! .usiness markets !i er> ?8 B-8+*e88 1.r5et8 .re 1ore ,+5e,3 to Ae pr+ce 9r+?e* t2.* Ar.*9 9r+?e*6 .*9 @8 De1.*9 +* A-8+*e88 1.r5et8 te*9 to Ae 1ore ?o,.t+,e t2.* co*8-1er 1.r5et8 +o&e(er* the t&o markets are !issimi%ar in other &ays re4uirin" marketers to take a !i erent approa$h &hen se%%in" to .usiness $ustomers than to $onsumers' These !i eren$es in$%u!e> Ho@ 9ec+8+o*8 .re 1.9e EH+8te*ce o; eHper+e*ce9 p-rc2.8er8 T+1e *ee9e9 to 1.5e A-3+*g 9ec+8+o* S+:e o; p-rc2.8e8 N-1Aer o; A-3er8 T3pe o; pro1ot+o*., e;;ort *ee9e9 to re.c2 A-3er Ho@ Dec+8+o* Are M.9e In the $onsumer market a (ery %ar"e per$enta"e o pur$hase !e$isions are ma!e .y a sin"%e person' There are situations in &hi$h mu%tip%e peop%e may .e in(o%(e! in a $onsumer pur$hase !e$ision* su$h as a $hi%! in %uen$in" a parent to $hoose a $ertain .ran! o $erea% or a hus.an! an! &i e !e$i!in" to"ether to .uy a house* .ut most o the time pur$hases are in!i(i!ua% !e$isions' The .usiness market is si"ni i$ant%y !i erent' <hi%e sin"%e person pur$hasin" is not unusua%* espe$ia%%y &ithin a sma%% $ompany* a si"ni i$ant per$enta"e o .usiness .uyin"* espe$ia%%y &ithin %ar"er or"ani-ations* re4uires o many' In the marketin" %iterature those asso$iate! &ith the pur$hase !e$ision are kno&n to .e part o a Buyin" ,entre* &hi$h $onsists o in!i(i!ua%s &ithin an or"ani-ation that per orm one or more o the o%%o&in" ro%es> B-3er I Buyer is responsi.%e or !ea%in" &ith supp%iers an! p%a$in" or!ers 7e'"'* pur$hasin" A"ent8'

Dec+9er A De$i!er has the po&er to make the ina% pur$hase !e$ision' 7e'"'* ,'E'O8' I*;,-e*cer A has the a.i%ity to a e$t &hat is or!ere! su$h as settin" or!er spe$i i$ations 7e'"'* en"ineers* resear$hers* pro!u$t mana"er8' U8er 5 those &ho &i%% a$tua%%y use the pro!u$t &hen it is re$ei(e! 7e'"'* o i$e sta et$8' I*+t+.tor I any .uyin" $entre mem.er &ho is the irst to !etermine that a nee! exist' G.te5eeper I anyone &ho $ontro%s a$$ess to other Buyin" ,enter mem.ers 7e'"'* a!ministrati(e assistant8' EHper+e*ce9 p-rc2.8er8 As note! in the !is$ussion o the .uyin" $enter* or"ani-ations o ten emp%oy pur$hasin" a"ents or pro essiona% .uyers &hose )o. is to ne"otiate the .est !ea%s or their $ompany' Un%ike $onsumers* &ho o ten %a$k in ormation &hen makin" pur$hase !e$isions* pro essiona% .uyers are "enera%%y as kno&%e!"ea.%e a.out the pro!u$t an! in!ustry as the marketer &ho is se%%in" to them' Dec+8+o* M.5+*g T+1e Depen!in" on the pro!u$t* .usiness pur$hase !e$isions $an !ra" on or an extensi(e perio!' Un%ike $onsumer markets &here impu%se pur$hasin" is rampant* the num.er o peop%e in(o%(e! in .usiness pur$hase !e$isions resu%ts in !e$isions takin" &eeks* months* or e(en years' L.rger p-rc2.8e8 For pro!u$ts that are re"u%ar%y use! an! re4uent%y pur$hase!* .usinesses &i%% o ten .uy a %ar"er (o%ume at one time $ompare! to $onsumer pur$hases' Be$ause o this .usiness pur$hasers o ten !eman! pri$e .reaks 7e'"'* !is$ounts8 or hi"her or!er %e(e%s' N-1Aer o; B-3er8 <hi%e there are se(era% mi%%ion $ompanies &or%!&i!e that operate in the o(era%% .usiness market* &ithin a parti$u%ar market the num.er is mu$h sma%%er' For examp%e* &hi%e in the

Unite! States there are BC mi%%ion househo%!s &ho may shop at a "ro$ery store* there are on%y a e& thousan!s "ro$ery stores &ith many o these $entra%%y $ontro%%e! as part o a $hain o stores' A!!itiona%%y* &ithin some in!ustries .uyers are hi"h%y $on$entrate! in $ertain "eo"raphi$ areas' ,onse4uent%y* $ompare! to $onsumer pro!u$ts* marketin" e orts are $on ine! to a sma%%er tar"ete! "roup' Pro1ot+o*., Foc-8 ,ompanies &ho primari%y tar"et $onsumers o ten use mass a!(ertisin" metho!s to rea$h an o ten &i!e%y !isperse! market' For .usiness5to5 .usiness marketers the si-e o in!i(i!ua% or!ers* a%on" &ith a sma%%er num.er o .uyers* makes 1@1 $onta$t .y sa%es representati(es a more e e$ti(e means o promotion' BUSINESS BUYING BEHAVIOR To $ap our !is$ussion o the .usiness market &e no& %ook at ho& pur$hasin" !e$isions are ma!e' Business pur$hasin" o%%o&s the same i(e5step .uyin" pro$ess a$e! .y $onsumers> D8 Nee9 Recog*+t+o* E8 Se.rc2 C8 E?.,-.te Opt+o*8 F8 P-rc2.8e G8 A;ter P-rc2.8e E?.,-.t+o*'

OBE0ECTIVES OF RESEARCH Pr+1.r3 OAject+?eB

To stu!y the pur$hase $riteria o the $ustomers an! i!enti y the a$tors that in %uen$e the ,ustomer Buyin" Beha(ior in respe$t o ,o%! Ro%%e! Stee% Strips6Sheets pro(i!e! .y the Hero C3c,e8 4C R D+?+8+o*7 use! in (arious in!ustries 7Automo.i%es* Bi$y$%e8 in L-92+.*. Seco*9.r3 OAject+?e8B H8 To in! the ma)or Spe$i i$ations an! Gra!es o ,o%! Ro%%e! Stee% Strips6 Sheets use! in (arious type o in!ustries in 0u!hiana' B8 To in! out the re4uirements o (arious types o in!ustries in 0u!hiana in &hi$h $o%! Ro%%e! 7,'R8 stee% strips6 sheets are use! as a ra& materia%' ?I8 To in! out the market share o the +ero ,y$%e ,R Di(ision in 0u!hiana Re"ion' ??8 To kno& a.out the uture expansion p%ans o (arious or"ani-ations # as$ertain their in$rease! .uyin" rom +ero ,y$%es ,R Di(ision'

CHAPTER<(

H ERO GROUP PROFILE H ERO GROUP 5 A name synonymous &ith the t&o &hee%ers in In!ia .e"an its )ourney aroun! our !e$a!es a"o' 0ike e(ery su$$ess story* +ero/s sa"a $ontains an e%ement o

spirit an! enterpriseJ o a$hie(ement throu"h "rit an! !etermination* $oup%e! &ith (ision an! meti$u%ous p%annin"' The +ero Group .e"an &ith a simp%e phi%osophy> 2To pro?+9e eHce,,e*t tr.*8port.t+o* to t2e co11o* 1.*6 .t . pr+ce 2e co-,9 e.8+,3 .;;or9> ' It is this spirit &hi$h !ri(es +ero* e(en to!ay the !ream o pro(i!in" tota% satis a$tion in a%% its spheres o a$ti(ities'

T2e 8.g. o; HERO 8t.rte9 +* #&FJ' Startin" as manu a$turer o .i$y$%e $omponents* +ero has to!ay "ro&n into mu%ti5unit* mu%ti5pro!u$t* "eo"raphi$a%%y !i(ersi ie!* manu a$turin" $ompanies or .i$y$%es* motor $y$%es* mini motor $y$%es* mope!s* $o%! ro%%e! stee%s an! $omponents' The %a"ship $ompany o the "roup +ERO ,=,0ES 0TD' entere! into the =GUINNESS BOO' OF )ORLD RECORDS> as the %ar"est .i$y$%e manu a$turers o the &or%! in ?BHF an! $ontinues to ho%! the en(ious re$or! e(er sin$e then' ,urrent%y it is pro!u$in" @?CII .i$y$%es per !ay' Group Turno(er is Rs' @IIII ,rore in @IIG5@IIH o &hi$h EK1ORT share is more than ?CL' The exports are .ein" ma!e to a%% parts o the &or%! in$%u!in" sophisti$ate! markets o Europe # US' To!ay +ero is the %ar"est exporter o t&o5&hee%ers in In!ia* .esi!es .ein" the astest "ro&in" In!ian T&o5&hee%er ,ompany'

One o the "roup $ompanies* +ero +on!a a%so a&ar!e! as Co1p.*3 o; t2e Ye.r .y Eco*o1+c T+1e8 +* (""& as it in$rease! its market share rom CEL to CH L'The main $omponent o a%% +ero "roup $ompanies are ,R Stee% there ore "ro&th in these $ompanies means "ro&th in +ero ,y$%es ,R Di(ision'

The "roup has re!e ine! the $on$ept o ANCILLIARISATION .y exten!in" te$hni$a% # mana"eria% support to the an$i%%aries' ,onse4uent%y* +ERO +ONDA has mana"e! to a$hie(e in!i"eni-ation o o(er BCL 5 a +on!a re$or! &or%!&i!e'

+ero is prou! to ha(e a DEA0ER NET<ORK o more than EIII* &hi$h has .een $emente! &ith &armth o persona% re%ationship* rapport # raternity' <ith a !eep sense o .e%on"in" to the +ero raternity* the Group/s !ea%ers ha(e $ata%y-e! "ro&th an! a$t as a stron" .ri!"e .et&een the $ustomers an! the "roup' More than @I*III emp%oyees o the "roup ha(e (i(i!%y an! $ontinuous%y !emonstrate! that human en!ea(or $an $ease%ess%y a$hie(e ex$e%%en$e an! !istin$tion "i(en a $on"enia% an! $on!u$i(e en(ironment' This has .een amp%y testi ie! in (ery %o& emp%oyee turno(er an! &or%!5$%ass pro!u$ti(ity' The %a" ship $ompany o the "roup HERO CYCLES LIMITED 2.8 Aee* pr.ct+c+*g 0UST<IN<TIME 40IT7 INVENTORY sin$e the perio! &hen the term &as not &i!e%y kno&n' The pra$ti$e is pre(a%ent in a%% the "roup $ompanies' The "roup ,hairman Mr' Bri)mohan 0a%* is one o the %ea!in" .usiness persona%ities o the $ountry' +e &as a&ar!e! Businessman o the year a&ar! in ?BBE .y a %ea!in" .usiness )ourna% o In!ia' Mr' Bri)mohan 0a% is the ormer 1resi!ent o Asso$iation o In!ian Automo.i%e Manu a$turers 7AIAM8 as &e%% as o ,on e!eration o In!ian In!ustries 7,II8* the premier In!ustry Asso$iation o In!ia' On Enterprise Resour$e 1%annin"* the Group has a%rea!y starte! its )ourney an! has starte! &orkin" on SAP R/$ 1o9-,e +* Hero Ho*9.6 Hero C3c,e8 Lt9 .*9 Hero C3c,e8 Lt9 4C R D+?+8+o*7' <ith the expertise a(ai%a.%e in5house the "roup has mustere! to imp%ement SA1 in other ,ompanies on its o&n'

COMPANY PROFILE Hero C3c,e8 L+1+te9 4Co,9 Ro,,+*g D+?+8+o*7 has .een promote! un!er .a$k&ar! inte"ration p%an .y +ero ,y$%es 0imite!* the &or%!/s %ar"est .i$y$%e manu a$turer' The

p%ant &as $ommissione! in :u%y* ?BB? at 0u!hiana at a $ost o Rs' D@I mi%%ion &ith an insta%%e! $apa$ity o CI*III MT in $onsu%tation &ith ME,ON* Asia/s %ar"est en"ineerin" $onsu%tants &hi$h ha! a te$hni$a% $o%%a.oration &ith <EAN UNITED* U'S'A' A* .99+t+o*., J<HI COLD REDUCTION MILL A.8e9 o* . jo+*t E*g+*eer+*g / 9e8+g* A3 MECON / Hero C3c,e Lt9' a%on" &ith hy!ro"en annea%in" an! E%e$tro $%eanin" %ine has .een insta%%e! or .etter pro!u$t 4ua%ity an! $apa$ity enhan$ement to ?*DI*III T1A &ith an a!!itiona% in(estment o Rs' GII mi%%ion' The p%ant &as $ommissione! primari%y to $ater to the "roup re4uirements' +o&e(er the pro!u$t &as soon a$$epte! .y ma)or automoti(e an! <hite Goo!s manu a$turers an! to!ay has .een supp%ie! to other market se"ment a%so* e'"' automo.i%e se$tor* Maruti U!yo" 0imite! an$i%%aries6(en!ors or .oth orme! an! !ra&n $omponents 5in D' DD* EDD* M,5?? an! other me!ium an! hi"h $ar.on "ra!es' To&ar!s rea%i-ation o ,USTOMER DE0IG+T* the p%ant has .een in(estin" $onstant%y +* -p gr.9.t+o* o; Tec2*o,og3 .*9 H-1.* Re8o-rce8 ' ,o%! Ro%%in" Di(ision is reno&ne! or its tra!ition in maintainin" hi"h stan!ar!s in the 1ro!u$t 9ua%ity $onstant%y* Re%ia.i%ity in $ustomer ser(i$in" an! is a%so $ommitte! to attune to the $han"in" 4ua%ity stan!ar!s throu"h $ontinuous up "ra!ation o 1ro!u$t* 1ro$ess an! +uman Resour$es' At t2e A.8e o; .,, Hero Gro-pK8 .ct+?+t+e8 +8 o*e A.8+c +*gre9+e*t < co,9 ro,,e9 8tee, Cog*+:.*t o; t2e +1port.*ce to e*8-re per;ect C-.,+t3 o; t2e A.8+c r.@ 1.ter+.,6 t2e Gro-p e8t.A,+82e9 +t8 o@* co,9 ro,,+*g 1+,, ;or 8tee, proce88+*g +* #&&" ' <ith an insta%%e! $apa$ity o CI*III MT per annum* the mi%% has state5o 5art e4uipment in$%u!in" E5+I re(ersi.%e $o%! ro%%in"5$um5skin pass mi%% &ith re&in!in" %ine* ,' R' S%itter* an! a mo!ern $%ose annea%in" a$i%ity to maximi-e the 4ua%ity o its pro!u$ts'

The mi%% has se(era% irsts to its $re!it* in$%u!in" hy!rau%i$ auto "au"e $ontro%s* $omputeri-e! pass s$he!u%es* automati$ s%o& !o&n an! a tota%%y en$%ose!* semi $ontinuous pi$k%in" %ineJ apart rom e e$ti(e anti5po%%ution an! sa ety $ontro%s &hi$h &ere in$orporate! rom the (ery .e"innin"'

T2e co1p.*3 2.8 .,8o +1p,e1e*te9 SAP R/$ @+t2 t2e .88+8t.*ce o; SIEMENS / MECON +ero ,y$%es 0imite!* ,' R' Di(ision has a%so entere! into an a"reement or te$hni$a% assistan$e to impro(e operation # maintenan$e o the p%ant &ith the he%p o te$hno%o"y # kno& ho& rom Ka&asaki Stee% ,orporation* :apan' Ka&asaki Stee% ,orporation &i%% he%p ,' R' Di(ision or impro(ement o 1ro!u$tion =ie%!* remo(a% o De e$ts* re!u$tion o ,ustomer Returns # impro(ement o Maintenan$e Operations a"ainst $ertain pre!etermine! Tar"ets' Ka&asaki Stee% possesses expertise .ase! on the &ea%th # experien$e an! expertise a$4uire! throu"h !e(e%opment* operation # maintenan$e o its o&n ,o%! Ro%%in" 1%ant in ,hi.a an! Mi-ushima <orks* :apan'

1rimari%y ,o%! Ro%%in" is !one or t&o purposes>

?@8

To +1pro?e t2e 8-r;.ce ;+*+82 o; t2e 8tee,

?D8

To +1pro?e t2e g.-ge .cc-r.c3

THE QUALITY POLICY OF THE COMPANY

TO MEET T+E ,USTOMER NEEDS* EK1RESSED AND IM10IED B= MAINTAINING ,ONSISTEN,= IN 9UA0IT= T+ROUG+ ,ONTINUOUS U1GRADATION OF TE,+NO0OG= AND +UMAN ENDEA;OR FOR MAKIMIMING T+E RETURN ON IN;ESTMENT

TO T+E STAKE +O0DERS

S)OT ANALYSIS STRENGTHS MANAGEMENT <IT+ ;ISION GOOD ,OR1ORATE IMAGE 0O,ATION AD;ANTAGE STRONG BRAND IMAGE MATERIA0 9UA0IT= SATISFA,TOR= GOOD ,USTOMER BASE ,A1TI;E ,ONSUM1TION F +I MI00 <IT+ AD;AN,ED ,A1ABI0ITIES +=DROGEN ANNEA0ED FURNA,E FOR BETTER

FINIS+ SA16ER1 IM10IMENTATION ,AN 1RODU,E S1E,IA0 GRADE MATERIA0 INFRASTRU,TURA0 FA,I0ITIES FOR NORT+ERN

REGION

)EA'NESSES INABI0IT= TO A,,OMMODATE ,USTOMERS IN URGEN,IES INTER6 INTRA DE1ARMENTA0 ,OMMUNI,ATIONS NOT EFFE,TI;E RE,,URAN,E OF SIMI0AR 1ROB0EM INEFFE,TI;E IM10EMENTATION OF ,ORRE,TI;E MEASURES DE0A= # DAMAGES DURING TRANS1ORTATION NE< DE;E0O1MENTS* 1ER1ETUA0 DE0A= UN1ROFITAB0E 1RODU,T MIK NARRO< <IDT+ 0IMITATION IN GFI MM 1ER,IE;ED +IG+ 1RI,E OF 1RODU,T DE0A= IN DE0I;ER= 0ESS ,REDIT 1ERIOD

OPPORTUNITIES

GRO<T+ IN AUTO6 <+ITE GOODS SEGMENTS GRO<T+ N E,ONOM= <I00 1U00 T+E DEMAND DIRE,T6 INDIRE,T EK1ORT O11ORTUNITIES TO IN,REASE T+E MARKET FOR<ARD INTEGRATION IN 1RESS MENTA0 ,OM1ONENTS6 TUBES6 ,OATED6 <IDER <IDT+ BA,K<ARD INTEGRATION 0IKE TIE U1 <IT+ SOME +R 1RODU,ER 9UA0IT= S+OU0D BE USED TO ,O;ER T+E 1RI,E B= SU110=ING RIG+T 9UANIT= AT TIME * SATISFA,TION OF T+E ,USTOMER ,AN BE IN,REASD T+E ,OM1AN= ,AN IN,RESE ITS MARKET S+ARE B= IN,RESING ITS 1RODU,TION ,A1,IT= IN,REASE MARKET SEGMENTS TO ,ATER AND TO IN,REASE ,USTOMER BASE

THREATS

+UGE ID0E # ADDITIONA0 ,A1A,IT= IN EK1ANSIONS IN NE< MI00'

S+IFT OF ,R MARKET TO +R* +R OI0ED AND 1I,K0ED MARKET'

EKISTEN,E OF ,OM1ETITION <I00 ,UT DO<N 1ROFITS

REGIONA0ISATION DUE TO +IG+ TRANS1ORTATION ,OSTS'

DE,IMATION OF DD6 EDD GRADES'

USAGE 1ATTERN ,+ANGING FROM ,R TO GA0;ANIMED* ,O0OUR ' ,OATED STEE0

MA:OR ,OM1ITITORS OF +ERO ARE IM1RO;ING T+EIR 9UA0IT= AND DE0I;ER=

SMA00ER SU110IER ARE IN,REASING T+EIR ,REDIT 1ERIOD

T+E 1O0I,IES OF T+E ,OM1ETITORS ARE F0EKIB0E AS ,OM1ARED TO +ERO ,=,0ES ,R DI;ISON

P ROCESS ROUT E Be ore the exe$ution o a pro!u$tion or!ers the !etai%s o pro$ess route an! pro!u$t spe$i i$ations are sent to the shop %oor in the orm o a sma%% re$tan"u%ar $ar!' This $ar! a$$ompanies the $oi% throu"h out its pro$ess %i e' The !i erent &ork $enters in +ERO ,=,0ES 0t!' ,'R' Di(ision are>

#7

HR 4Hot Ro,,e97 SLITTER

The +R ,oi% is irst sent to the +R S%itter* &here it $an .e s%it in maximum E &i!ths' The &i!ths are !e$i!e! .ase! on a$tors %ike minimi-ation o s%it %oss* or!er priority et$' This a$ti(ity is .ein" !one manua%%y at present .y PRODUCTION PLANNING / CONTROL !epartment* .ut the optimi-ation pa$ka"e .ein" !e(e%ope! .y ME,ON &i%% $a%$u%ate this* an! su""est the most optimum5s%ittin" pattern or the +R ,oi%' A E !i"it uni4ue $o!e is assi"ne! to the +R ,oi%* an! a su ix o A* B* , an! D is a!!e! to this num.er a ter the $oi% is s%atte!' This i!entity o s%atte! $oi% is maintaine! ti%% it rea$hes the ,R s%ittin" sta"e The 1u%% throu"h +R s%ittin" %ine $uts the rou"h e!"es o the +R $oi%s* s%ittin" it into narro&er &i!ths' The +R S%itter has a pro!u$tion $apa$ity o @I tonnes6hr'

(7

PIC'LING

A ter the +R s%ittin"* the $oi% "oes throu"h the pro$ess o pi$k%in" that the $oi% is sent throu"h (arious $ham.ers $ontainin" a$i!s* &hi$h remo(es the sur a$e impurities' The pi$k%in" %ine uses three a$i! tanks an! three rinse tanks' A ter the pi$k%in" operation* the $oi% is sent or $o%! ro%%in"' As it &as mentione! a.o(e* the route* &hi$h the $oi% has to take* is pre!etermine!* an! is !isp%aye!* on a $ar!* &hi$h a$$ompanies the $oi%' It o ers the o%%o&in" A!(anta"es> Remo(es errous s$a%es rom the sur a$e o the +R ,oi%s' Minimum $arryo(er o $h%ori!e' Minima% setAup* hen$e more a!apta.%e to 4ui$k $han"eo(ers' A hot air .%o&er at the en! !ries o the ex$ess &ater on the strip'

$7

ROLLING

Ro%%in" $an .e !one either in JH+ 1+,, or +* EH+ 1+,, !epen!in" upon the !esire! thi$kness* an! a(ai%a.%e $apa$ity' The ro%%e! $oi%s ha(e to .e re&oun! to !e$rease the tension' This $an .e !one either on @+i* E+i or F+i mi%%' Ro%%in" a%so %ea!s to in$rease! har!ness* &hi$h makes the $oi%s .ritt%e' The F5+i mi%% has automati$ "au"e $ontro%* pass s$he!u%e stora"e an! auto interme!iate s%o& !o&n' The mi%%s "i(e %at strip shape* minimi-e! e!"e !rops an! thinner "au"es'

E7

ANNEALING

Annea%in" is a pro$ess o +eatin"* Soakin" an! ,ontro%%e! $oo%in" o a ,oi% in a non5 oxi!i-in" atmosphere' This pro$ess ren!ers the strip so t an! restores the !u$ti%ity an! orma.i%ity' There are t&o types o annea%in"> HYDROGEN ANNEALING

NITROGEN ANNEALING

F7 S'IN PASS A ter Annea%in" the $oi% is sent or skin pass' This 1ro$ess imparts a sur a$e inish or e'"' matte* mirror et$' to the $oi%* !epen!in" on the $ustomer re4uirements' This pro$ess $an .e $arrie! out on a%% D ro%%in" mi%%s' It o ers the o%%o&in" A!(anta"es> Skin 1assin" remo(es stret$her strain or 0u!er 0ines' It pro(i!es !esire! inishes su$h as Matt* Bri"ht on the strip sur a$e' Imparts %atness to the strip'

J7

CR4Co,9 Ro,,e97 SLITTER

A ter the skin pass the $oi% is sent to ,R s%ittin" ma$hines' The s%it $oi%s are a"ain a%%otte! a ne& num.er* an! the pre(ious i!entity is %ost a ter this pro$ess' Other $onsi!erations here are the inner an! outer !iameter an! num.er o $oi%s'

%7 CUT TO LENGTH I the $ustomer re4uires strips as ina% "oo!s then the $oi%s are sent to ,ut to 0en"th 7,T08 ma$hines &hi$h $ut the $oi% in the !esire! %en"th o the strips'The %en"th $an (ary rom EIImm to DCIImm'

!7

PAC'ING

The ina% pro$ess is pa$kin" o $oi%s an! strips* an! su.se4uent !ispat$h' This is the $omp%ete !es$ription o the pro$ess route' It is not ne$essary or the $oi% to "o throu"h a%% the pro$esses mentione!' Depen!in" on the type o pro!u$t an! $ustomer/s re4uirement some o these pro$esses $an .e skippe! or repeate!'

P RODUCT APPLICATIONS ,o%! ro%%e! stee% strips are manu a$ture! .y ,'R' Di(ision to meet a (ariety o uses' Some o the $ommon app%i$ations are !etai%e! .e%o&B<A-to1oA+,e8 / A-to Co1po*e*t8 B+c3c,e .*9 A+c3c,e co1po*e*t8 P+pe8 .*9 T-Ae8 Re;r+ger.tor8 F-r*+t-re S2-tter8 Be.r+*g8 C.A,e t.pe Tr.*8;or1er8 .*9 R.9+.tor8 E,ectr+c 8tee, 4L.1+*.t+o*86 TV c2.88+86 p+ct-re t-Ae ;r.1e86 1eter86 8@+tc2 ge.r87 Do1e8t+c .pp,+.*ce8 4).82+*g 1.c2+*e86 ;.*86 8to?e86 8e@+*g 1.c2+*e86 o?e*86 to.8ter86 gr+,,8 etc7 O;;+ce .-to1.t+o* pro9-ct8 4Co1p-ter co1po*e*t86 t3pe@r+ter86 P2oto8t.t 1.c2+*e co1po*e*t8 etc7

MA0OR CUSTOMERS OF HERO CR DIVISION ?E8 ?C8 ?F8 ?G8 ?H8 ?B8 @I8 @?8 @@8 @D8 @E8 @C8 @F8 @G8 @H8 @B8 DI8 D?8 D@8 DD8 DE8 DC8 DF8 DG8 MARUTI UD=OG 0IMITED ES,ORTS 0IMITED 7MSD8 ES,ORTS 0IMITED 7TRA,TOR DI;ISION8 ES,ORTS 0IMITED 7=AMA+A MOTOR ,=,0ES DI;ISION8 +ERO +ONDA MOTORS 0IMITED TE,+NI,O IINDUSTRIES 718 0IMITED GABRIE0 INDIA 0IMITED GODRE: GE A110IAN,ES 0IMITED MANDA1 INTERNATIONA0 0IMITED +ERO ,=,0ES 0IMITED 0O+IA MA,+INES 0IMITED MOON0IG+T AUTO 718 0IMITED B+UR:EE MA,+INE TOO0S S+EET ,OM1ONENTS61IONEER AUTO 7KA= :A=8 +A<KINS ,OOKERS 0IMITED RAI0 ,OA,+ FA,TOR=* KA1URT+A0A INDO ASIAN FUSEGARS 0IMITED 1GT ,OM1ONENTS 0IMITED AGRO ENGINEERING <ORKS6ASIAD ENGINEERS +ORIMON INDUSTRIES 1RODU,TS :A= =US+IN 0IMITED D+AN:A0 ENGINEERING 0IMITED MU0TITE,+ 1RODU,TS MITASO A110IAN,ES 0IMITED

@C'

1ERFE,T <+EE0S

DH8 DB8 EI8 E?8 E@8 ED8 EE8 EC8 EF8 EG8 EH8 EB8 CI8 C?8

SET+I INDISTRIA0 ,OR1ORATION R'R' AUTOMOTI;E ,OM1ONENTS SD0 AUTO 1;T' 0TD' 7FOR ,AR SEAT ,OM1ONENTS8 :BM TOO0S 0IMITED S+I;ANI 0O,KS 718 0IMITED ;ENUS META0S6;ENUS STAM1INGS ;I,TORA TOO0S OMAK ENGINEERS EMM KA= INDUSTRIES INTERNATIONA0 E0E,TRONI, DE;I,ES 0IMITED 7IED08 STEE0 TUBES OF INDIA 0IMITED AUTO TE,+ AUTO MAK 7UNIT OF OMAK AUTO 0IMITED8 +IMA,+A0 FASTENERS 0IMITED 7;ENDORS FOR 1URO0ATOR8

C@8 CD8 CE8 CC8 CF8 CG8 CH8 CB8

NATIONA0 ENGINEERING INDUSTRIES 0IMITED B10 7INDIA8 0TD' E0E,TRO0UK INDIA 0IMITED TE,UMSE+ 1RODU,TS INDIA 0IMITED BA:A: TEM1O 0IMITED BA:A: AUTO 7AN,I00ARIES8 INDI,A 7AN,I00ARIES8 TE,+ AUTO 0IMITED

FI8

DAE<OO MOTORS 0IMITED 7AN,I00ARIES8

CHAPTER<$

RESEARCH METHODOLOGY

The Resear$h Desi"n is the .asi$ rame&ork* &hi$h pro(i!es the .asi$ "ui!e%ines or the Resear$h pro$ess' It is a .%ue print a$$or!in" to &hi$h resear$h is to .e $on!u$te!' For $arryin" out my resear$h &ork* I $arrie! out sur(ey an! respon!ents &ere $onta$te! at their p%a$es' The primary !ata is $o%%e$te! &ith the he%p o 9uestionnaire'

S-r?e3 Met2o9B The Sur(ey Metho! &as se%e$te! to o.tain the nee!e! in ormation .y askin" the 4uestions to the respon!ents throu"h the 9uestionnaire !e(e%ope!* an! passe! .y our +OD Marketin"' As per Marketin" Department this metho! &as the suita.%e or the pro)e$t' Sur(eys are "enera%%y $on!u$te! .oth in 4ua%itati(e an! 4uantitati(e resear$hes' A ter !e$ision a.out the samp%in"* the 4uestionnaire &as !esi"ne! an! the respon!ents &ere $onta$te! to ans&er the 4uestion' This pro$ess o "ettin" ans&er is kno&n as inter(ie&in"' T&o si"ni i$ant a$tors a e$t the e e$ti(eness o sur(ey metho!s are> F?8 <or!in" o 4uestionnaire 7It must .e su$h that it extra$t !esire! in ormation a$$urate%y an! un.iase!'8 F@8 A.i%ity an! &i%%in"ness o the respon!ent to "i(e a$$urate an! un.iase! in ormation'

Met2o9 U8e9 +* co*9-ct+*g 8-r?e3B

Per8o*., I*ter?+e@B 1ersona% inter(ie& is the pro$ess o $ommuni$ation &here a$e to a$e $onta$t .et&een the in(esti"ator an! the respon!ent is esta.%ishe!' It is the $on(ersation arran"e! or the purpose o o.tainin" (ie&s o the respon!ent on the topi$ o interest to the inter(ie&er' Un!er this metho! the in(esti"ator presents the 4uestionnaire in person at o i$e o the respon!ent' Bein" a$ti(e parti$ipant* he esta.%ishes a $%ose rapport &ith the respon!ent an! moti(ates him or her to ans&er a%% the 4uestion satis a$tory' S.1p,e8B Sin$e I ha(e to make a sur(ey o (arious type o in!ustries in 0u!hiana &hi$h are usin" ,o%! Ro%%e! 7,'R'8 Stee% Strips6Sheets* thus I ha(e taken a proper samp%e in proportion o (arious in!ustries "i(in" !ue &ei"ht a"e to num.er o (arious type o in!ustries usin" ,'R'Stee% Strips6Sheets in 0u!hiana'

NUMBER OF AUTOMOBILE INDUSTRY L (% NUMBER OF BICYCLE INDUSTRY L (# NUMBER OF OTHER INDUSTRY L #(

SUGGESTIONS / RECOMMENDATIONS

The $ustomers o ,R Stee% Strips6,oi%s per$ei(e 4ua%ity as the most important a$tor &hi%e pur$hasin"' More $ustomers &i%% .e attra$te! to&ar!s the pro!u$ts i 4ua%ity parameters su$h as sur a$e inish* pee%in" o et$' are impro(e! upon .y "ettin" $ontinuous ee!.a$k on the 4ua%ity an! other ser(i$es pro(i!e! .y the $ompany' The se$on! most important a$tor is !e%i(ery system an! pri$e' The pri$e shou%! .e $ompetiti(e &ith the other supp%iers' The thir! most important a$tor is ,re!it po%i$y o the $ompany' Better $re!it a$i%ity shou%! .e "i(en to the $ustomers an! payment norms shou%! .e simp%i ie!' 9ua%ity shou%! .e use! to $o(er the pri$e' Impro(ement in 4ua%ity* Ser(i$es* De%i(ery an! Rate re!u$tion shou%! .e ma!e to urther in$rease the market share an! to attra$t the ne& $ustomers o ,'R' Stee% Strips6 Sheets' There are some Su""estions* &hi$h shou%! .e $onsi!ere! in the uture or .etter $ustomer satis a$tion' These areB < 1ri$es shou%! .e $ompetiti(e' De%i(ery shou%! .e on time as per 9uantity

s$he!u%e!' satis a$tion

0i tin" o Materia% shou%! 4ui$k%y a ter the sa%e or .etter $ustomer

Better $re!it a$i%ity shou%! .e "i(en to the $ustomers In uture to attra$t the ne& $ustomers Dis$ount shou%! .e "i(en' ,ommuni$ation $hanne%s shou%! .e impro(e! or pro(i!in" the maximum

satis a$tion'

LIMITATIONS OF STUDY P re8e*ce o; H-1.* ErrorB < Some respon!ents ha(e not "i(en the proper

ans&ers* they are not a&are o the o.)e$ti(es un!ertaken or resear$h purposes'

T +1e Co*8tr.+*tB < Time has a%so a e$te! the resear$h !ue to %ess a(ai%a.i%ity

o num.er o !aysJ sur(ey &as $on!u$te! in e& !ays' T ec2*+c., Co1p,eH+t+e8B 5 There &as no proper re$or! maintaine! .y the

$ustomers a.out the $onsumption o ,'R' Stee% Strips6 Sheets' N o* Co<oper.t+o* o; 8o1e Re8po*9e*t 8 B < Some Respon!ents !i! not

proper%y $o5operate! or "i(in" ans&ers* the .asi$ reason &as non5a(ai%a.i%ity o time' R e8po*9e*t B+.8*e88B 5 Some $ompanies &ere (ery mu$h a(or in one

$ompany .ut they &ere una.%e to pro(i!e %o"i$ .ehin! it'

CHAPTER<$

Q-e8# )2.t t3pe o; pro9-ct8 9o 3o- 1.*-;.ct-reG TYPE OF PRODUTS A-to1oA+,e p.rt8 B+c3c,e p.rt8 Ot2er8

MAGE OF RESPONDENTS ECL DCL @IL

NO OF RESPONDENTS @G @? ?@

INFERENCE The "raph represents that ECL o the in!ustries that use $o%! ro%%e! stee% in 0u!hiana are manu a$turin" automo.i%e parts* DCL o the in!ustries manu a$turin" .i$y$%e parts # rest o them i'e' @IL in!ustries are manu a$turin" Stampin"s* Ra!iators* <hite Goo!s et$'

Q-e8( )2.t +8 3o-r 8t.t-8 +* 8-pp,3 c2.+*G

STATUS IN SUPPLY CHAIN # t+er (*9 t+er $ t+er


r9 8t

MAGE OF RESPONDENTS CIL @D'DDL @F'FGL

NO OF RESPONDENTS DI ?E ?F

INFERENCE The ma)or amount o in!ustries usin" $o%! ro%%e! stee% 7CIL8 in 0u!hiana $omes in ? st tier means they are !ire$t (en!ors o the in!ustries %ike +ero $y$%es* +ero +on!a Motors 0imite!* Maruti U!yo" 0imite! et$'The @D'DDL o in!ustries $omes in @ n! tier that are (en!ors o ?st tier in!ustries # @F'FG L in!ustries $omes in Dr! tier that are (en!ors o @n! tier in!ustries'

STATUS IN SUPPLY CHAIN #8t t+er (*9 t+er $ t+er


r9

AUTO INDUSTRY ?B F @

BICYCLE INDUSTRY H C H

OTHER INDUSTRIES D D F

INFERENCE The "raph in!i$ates the !istri.ution o (arious in!ustries un!er !i erent %e(e%s o supp%y $hain' This ana%ysis &i%% .e urther he%p u% in ana%y-in" the impa$t o market %u$tuations amon" (arious in!ustries'

Q-e8$ Do ;,-ct-.t+o*8 +* 1.r5et .;;ect 3o-r A-3+*g Ae2.?+orG OPTION Ye8 No

MAGE OF RESPONDENTS FIL EIL

NO OF RESPONDENTS DF @E

INFERENCE Out o the tota% num.er o respon!ents EIL o the respon!ents sai! that market %u$tuations !o not a e$t their .uyin" .eha(ior &hi%e remainin" FIL in!ustries are a e$te! .y %u$tuations in market' This sho&s that i there are market %u$tuations* then there is a $han"e in .uyin" .eha(ior i'e' &hi%e makin" pur$hase* the a$tors norma%%y kept in min! are i"nore! # some other a$tors are $onsi!ere! keepin" in (ie& the pre(ai%in" $ir$umstan$es'

#ST TIER

(ND TIER

$RD TIER

INFERENCE The a.o(e "raphs sho& the e e$t o %u$tuations in market on (arious in!ustries $%assi ie! a$$or!in" to their status in supp%y $hain' Throu"h these &e $an in er that most

o the in!ustries in ?st tier are not (ery mu$h a e$te! .y market %u$tuations &hi%e @ n! tier in!ustries are %ess a e$te! .y the same' Dr! tier in!ustries are the most a e$te! ones &hen market %u$tuations take p%a$e'

Q-e8E I* @2+c2 ;or1 9o 3o- A-3 8tee,G

FORM OF CR STEEL CR Co+,8 CR Str+p8 BOTH

MAGE OF RESPONDENTS @CL ?CL FIL

NO OF RESPONDENTS ?C B DF

INFERENCE The "raph sho&s that most o the $ompanies use .oth ,R stee% strips as &e%% as $oi%s in their manu a$turin" operations' ,R strips are pur$hase! .y (ery %ess num.er o $ompanies I'e' most o those &hi$h !o not ha(e their o&n ,T0 7,ut to 0en"th8 ma$hines' So they spe$i y their strip si-es a$$or!in" to their pro!u$t re4uirements'

Q-e8F )2+c2 gr.9e487 o; 8tee, 9o 3o- p-rc2.8eG

GRADE D DD/EDD MC<##6#( OTHERS

PERCENTAGE EE DF ?C C

INFERENCE The per$enta"e share o D 7Dra&in"8 Gra!e stee% is mu$h hi"her .e$ause it is the main materia% "ra!e use! in manu a$turin" o .i$y$%es # 0ar"e amount o D Gra!e stee% is $onsume! .y the +ero ,y$%es on%y' Moreo(er D "ra!e stee% is $heaper than other "ra!es as it has %esser $ar.on $ontent' Other hi"her "ra!e stee%s %ike DD* EDD* M,5??* ?@* IF et$ are use! in manu a$turin" other $omponents that re4uire more stren"th %ike auto parts* stampin"s* &hite "oo!s et$' Q-e8% )2+c2 ;.ctor8 9o 3o- co*8+9er t2e 1o8t @2+,e p-rc2.8+*g CR 8tee,G 4R.*5 # I F +* or9er o; pre;ere*ce7 ATTRIBUTES PRICE QUALITY DELIVERY TIME CREDIT PERIOD AUTO INDUSTRY @'DD ?'HB @'?? E'EE AVERAGE RAN'ING BICYCLE INDU ?'CG @'@B @'HF E'I? OTHERS D'@C D'I? @'BB @'BH

AFTER SALES SERVICE

E'@@

E'@H

@'GG

INFERENCE

As the "raph represents that most o the $ustomers in Auto in!ustry pre er 9ua%ity as the ma)or a$tor &hi%e makin" pur$hase !e$ision' De%i(ery time is another a$tor in %uen$in" their .uyin" .eha(ior o%%o&e! .y pri$e an! a ter sa%es ser(i$e' It $an .e seen that in auto in!ustry $re!it perio! a%%o&e! .y the se%%er is "i(en the %o&est rank' This !oes not mean that this a$tor is not taken un!er $onsi!eration .ut it su""ests that keepin" in (ie& the other a$tors* this attri.ute is "i(en the %o&est pre eren$e' INFERENCE It $an .e seen (ery $%ear%y that in .i$y$%e in!ustry hi"hest pre eren$e is "i(en to 1ri$e as an attri.ute &hi%e makin" pur$hase' The other a$tor in %uen$in" $hoi$e o .uyers is 4ua%ity o%%o&e! .y !e%i(ery time* $re!it perio! a%%o&e! # %east pre eren$e is "i(en to a ter sa%es ser(i$e' INFERENCE As the "raph in!i$ates that in other in!ustries* a ter sa%es ser(i$e # $re!it perio! a%%o&e! .y se%%ers are ma)or a$tors that in %uen$e the min!s o $ustomers &hi%e makin" pur$hase !e$ision' Other a$tors are a%so $%ose%y he%! &ith a%% these attri.utes'

Q-e8! Fro1 @2+c2 8-pp,+er487 3o- .re A-3+*g pre8e*t,3G

INFERENCE A ma)or $hunk o 0u!hiana ,R stee% users pur$hase ,R stee% rom +ero ,y$%es ,R Di(ision' As per the "raph Bhushan Stee%s is a ma)or $ompetitor o +ero ,RD &ith a%most DIL o tota% sa%es' Fo%%o&e! .y A(on Group* At%as strips* TATA* SAI0* et$'

Q-e8& Do 3o- 2.?e .*3 eHp.*8+o* p,.*8 +* *e.r ;-t-reG

INFERENCE As &e kno& that .i$y$%e as &e%% as auto in!ustry is expan!in" rapi!%y* so most o the or"ani-ations ha(e expansion p%ans to $ater to the in$reasin" uture market !eman!' HIL o the $ompanies sai! that they ha(e expansion p%ans in near uture i'e' &ithin a perio! o ?5@ years' The $apa$ity is expe$te! to in$rease .y approx' DIL' This means that the uture o ,R Stee% in!ustry is (ery .ri"ht'

Q-e8## )2.t .re t2e 1.jor C-.,+t3 re,.te9 proA,e18 t2.t 3o- ;.ce @2+,e p-rc2.8+*g CR 8tee,G Pe ;+ % #& 8 ## E 5

INFEN ENCE le The a. me "raph sho&s the ma)or 4ua%ity re%ate! pro.%ems as a$e! .y $ustomers' Most o the $ustomers !o not a$e any kin! o 4ua%ity re%ate! pro.%em' I at a%%* pro.%ems %ike rustin"* stee% .ein" pitte!* improper %amination* inappropriate thi$kness et$ are a$e! .y the $ustomers' I en$ountere! re4uent%y* the $ustomer may re!u$e the amount o pur$hasin" rom that parti$u%ar se%%er an! may shi t to some other sour$e' R.t+*g o; HERO CYCLES LIMITED CR DIVISION IN TERMS OF FOLLO)ING PARAMETERS . A c 9 e Co1p.*3 +1.ge De,+?er3 Co*;or1.*ce @+t2 8pec+;+c.t+o*8 A;ter 8.,e8 8er?+ce8 Re8po*8e t+1e

Acco11o9.t+o* o; -rge*c+e8 ATTRIBUTES PERCENTAGE RATING

COMPANY IMAGE DELIVERY CONFORMANCE )ITH AFTER SALES SERVICES SPECIFICATIONS RESPONSE TIME ACCOMMODATION OF URGENCIES

H?'FF C@'FF B?'FF G? EI FC

INFERENCE The "raph in!i$ates that +ERO ,RD en)oys a ?er3 goo9 +1.ge rom the $ustomers/ point o (ie&' More than HIL $ustomers .e%ie(e that +ERO ,RD is a &e%% kno&n an! repute! $ompany' This is a ma)or a$tor $onsi!ere! &hi%e ma)or a$tor that $ustomers $onsi!er &hi%e makin" their pur$hase !e$isions' De,+?er3 !oes not "et mu$h ratin" essentia%%y !ue to re$ession as there has .een a shorta"e o ra& materia% in the market sin$e $oup%e o months' It &as seen that the $ustomers shi te! to other supp%iers o&in" to poor !e%i(ery .y +ERO ,RD' The $ompany "ets hi"h ratin" in co*;or1.*ce @+t2 8pec+;+c.t+o*8 i'e' !e%i(erin" the materia% ha(in" exa$t%y same $hemi$a% as &e%% as me$hani$a% properties as spe$i ie! .y the $ustomers' The $ompany &as "i(en a(era"e ratin" in terms o .;ter 8.,e8 8er?+ce i'e' it is neither too "oo! nor too .a!' The $ompany is (ery poor in "i(in" proper re8po*8e to $ustomer/s "rie(an$es' HEUO This a$tor may a e$t the $ompany in a .a! &ay' As the "raph sho&s* +ERO ,RD is 4uite "oo! in .cco11o9.t+*g -rge*c+e8 as pose! .y the $ustomers' QUESTIONNAIRE Co1p.*3 *.1eB OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Co*t.ct per8o*B OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO A99re88 B OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

Q e8 # ) 2 .t t3 p e o; p ro 9 ct 8 9 o 3 o 1 . * -; .c t-

reG . c A-to1oA+,e p.rt8 Ot2er8 A B+c3c,e p.rt8

Q-e8( )2.t +8 3o-r 8t.t-8 +* 8-pp,3 c2.+*G . # t+er I I A ( Q-e8$ Do ; , c t . t + o * 8 + * 1 . r 5 e t . ; ; c $ t+er t+er

ect 3o-r A-3+*g Ae2.?+orG . Ye8 I I A No

Q-e8! Fro 1 @2+ c2 8-p p,+e r487 3o.re A-3 +*g pre 8e* t,3G P,e .8e 8pe c+;3 t2e C-. *t+t 3 .,8o MT

Q-e8E I* @2+c2 ;or1 9o 3o- A-3 8tee,G . CR Co+, A CTL 4C-t To Le*gt27 A DD c EDD e MC<#( ; IF

Q-e8F )2+c2 gr.9e487 o; 8tee, 9o 3op-rc2.8eG . D 9 MC<## MT Q-e8J )2.t +8 3o-r 1o*t2,3 reC-+re1e*t o; CR 8tee, gr.9e @+8eG MT . D MT A DD/EDD MT c MC<##/#( 9 Ot2er8 Q-e8% )2+c2 ;.ctor8 9o 3o- co*8+9er t2e 1o8t @2+,e p-rc2.8+*g CR 8tee,G 4R.*5 # I F +* or9er o; pre;ere*ce7 a' Pr+ce A Q-.,+t3 c e Le.9 t+1e A;ter 8.,e8 8er?+ce8 9 Cre9+t ;.c+,+t3

. OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Qt3

A OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Qt3 c OOOOOOOOOOOOOOOOOOOOOOOOOOOO Qt3 MT MT

R.te HERO C Y C L E S L

A No Q-e8& Do 3o- 2.?e .*3 eHp.*8+o* p,.*8 +* *e.r ;-t-re / @2.t @+,, Ae 3o-r +*cre.8e9 c.p.c+t3G . Ye8

t OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO 9 MT 4.pproH 7 4 C R D

Q-e8#" )2.t C-.*t+t3 o; 3o-r +*cre.8e9 c.p.c+t3 o; CR 8tee, @+,, 3o- p-rc2.8e ;ro1 HERO CYCLES Lt9 4CR D+?+8+o*7G

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO + MT 4.pproH 7 ? . Q-e8## )2.t .re t2e proA,e18 t2.t 3o- ;.ce @2+,e p-rc2.8+*g CR 8tee,G A + 8 + o . Q-e8#( )2.t .re t2e 8-gge8t+o*8 t2.t 3o- c.* g+?e to co-*ter t2o8e A proA,e18GP * 7 + *

ter18 o; ;o,,o@+*g p.r.1eter8B 4G+?e r.t+*g ;ro1 #<F7 #L Poor / F L EHce,,e*t . A c 9 e ; Co1p.*3 +1.ge De,+?er3 Co*;or1.*ce @+t2 A;ter 8.,e8 8er?+ce8 Re8po*8e t+1e Acco11o9.t+o* o;

8pec+;+c.t+o*8

-rge*c+e8

D.teB

4S+g*.t-re7

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