2 Wheeler Analysis-Icici

A STUDY ON TWO WHEELER FINANCING WITH SPECIAL
REFERENCE TO ICICI BANK LTD CONTENTS
CHAPTER NO. TITLE PAGE NO.
EXECUTIVE SUMMARY 1
I INTRODUCTION
1.1 THEORETICAL REVIEW 5
1.2 REVIEW OF LITERATURE 8
1.2 SCOPE OF THE STUDY 8
1.3 OBJECTIVES OF THE STUDY 9
1.4 RESEARCH METHODOLOGY 10
1.5 LIMITATIONS OF THE STUDY 12
II COMPANY PROFILE 13
III DATA ANALYSIS & INTERPRETATION 19
IV FINDINGS & RECOMMENDATIONS 78
V CONCLUSION 83
QUESTIONNAIRE 84
BIBLIOGRAPHY 88
LIST OF TABLES
TABLE NO. TITLE PAGE NO.
1 Finance companies in Dealership 18

2 Finance players who take the Leading Role 20
3 Whether the Motor Company have Local
tie-up with finance company 22
4 Finance Company with which the motor
company has tie-up 24
5 Factors influencing the customers to Choose
their Financiers -Weighted Average Rank Method 25
6 Finance companies based on Attractive Schemes 28
7 Finance companies based on Interest % 29
8 Finance companies based on Advertisement 32
9 Finance companies based on Counter Staffs’ Marketing
ability 34
10 Finance companies based on Promptness & Payments 36
11 Finance companies based on Ease of Documentation 38
12 Finance companies based on Lead time Credit Decision 40
13 Finance companies based on response of Scheme
Requirements 42
14 Percentage of dealer incentive offered by Ashok
Leyland Finance 44
15 Percentage of dealer incentive offer by Centurion Bank 46
16 Percentage of dealer incentive offer by HDFC bank 48
17 Percentage of dealer incentive offer by BAJAJ
auto Finance 50
18 Percentage of dealer incentive offer by ING Vysya Bank 52
19 Percentage of dealer incentive offer by TATA Finance 54
20 Percentage of dealer incentive offer by ICICI bank 56
21 Percentage of dealer Incentive offer by others 58
(Private Financiers)
22 Whether the dealer has participated in the Trade
Fairs / Meals 60
TABLE NO. TITLE PAGE NO.
23 Whether ICICI bank joined in trade shows 62

24 No. of customers who took Advantage of 0% Scheme 68
25 No. of customers who took Advantage of 999 Scheme 70
26 No. of customers who took advantage of 4999 scheme 72
27 No. of customers who took advantage of gift scheme 74
28 Effectiveness of Sales Promotional Measures offered
by the Finance Companies 76
CHAPTER-I
INTRODUCTION
TWO WHEELER FINANCE
ABOUT TWO WHEELER FINANCING
The two-wheeler financing sector has a lot of players in the form of
private banks, NBFCs etc. In the recent past the two-wheeler industry has been
on top gear. Discounts and launch of attractive models have seen the motor
cycle segment powering the growth of two-wheelers. This has widely enabled
The organised market of two wheeler in India is estimated to be Rs

6,000-7,000 crore. So, a huge space for the two wheeler finances companies.
Previously there was a limited awareness about availability of two wheeler
loans in the rural areas but now the demand for those areas are picking up.
These finance companies are aggressively marketing their products with
innovative service offering and incentives.
Getting auto loans has become quite easy. The finance agencies has
come of age and companies are aggressively marketing different auto loan
schemes by offering innovative and alluring offers to the customers. Today
there are so many two wheeler finance companies in India.
These companies are either banks like HDFC ICICI, Bank of Baroda and
Centurion Bank of Punjab or private companies from non-banking sector.
Overview
Two wheeler finance in India is easily available with little documentation.

The rates of interest are reasonable in the Indian market hence the mass can
easily get a bike financed.
 Up to 95% of the cost of the vehicle is financed.
 Flexible repayment options ranging from 12 to 48 months.
 The repayment is calculated upon monthly reducing rates.
 Repayment is made through post-dated cheques with easy EMIs .
Leading banks in the public and private sector are providing two wheeler
loans, right form mopeds to motorbikes. These loans are available at attractive
rates and best prices to attract new customers. Quite a few banks are offering
online loan application for the ease of prospective clients. Private sector
banks are ahead of their public sector counterparts in terms of efficiency of
application and processing of loans. On the spot loan offers are given by
various banks and other flexible schemes to suit the needs and pockets of
customers.
Maximum Loan offered by Banks for Two Wheeler Loans
Loans are provided by banks from as low as Rs. 5000 to Rs. 150000.
These loans can be paid in easy installments. The installment period can range
anywhere from six months to three years, depending on the finance option
chosen by the customer. In case of new vehicles, banks generally finance up to a
Maximum of 90% of the cost of the vehicle.
In case of old/second hand vehicles, banks finance up to a maximum of 85% of

the value of the vehicle. Repayment is done by Equated Monthly Installments or
EMI.
Interest Charged by Bank on Two Wheeler Loans

Although Public sector banks are offering lower interest rate than their
private counterparts but they are lagging behind due to poor quality of service.
Interest rates depend on the two wheeler model, loan tenure. Interest is
generally calculated on a monthly reducing balance
Process Of Two Wheeler Loans Application
Customers can contact the bank representative and apply for an auto loans.
They can also fill online forms. There is no processing fee for new cars in most
banks/finance companies. However, some companies do charge a minimal
processing fee for used two wheelers.
Documents Required for Two Wheeler Finance
To get any two wheeler financed, certain amount of documentations are

required. If the documents submitted fulfill the criteria of the financing
company, the loan is approved and the bike is yours. The basic documents
required are as mentioned below.
 Application Form
 Passport size photographs
 Proof of income of last two years
 Proof of Residence
 Proof of identity
1.2 REVIEW OF LITERATURE
The researcher has collected the several researchers’ viewpoints,

Analytical reports and related details of two wheeler financing, this section the
collected materials as review of literature.
Rengasamy Elango and Vijayakumar Gudep has presented in their study

the service quality and customer satisfaction among the private, public
and foreign banks in India. An analysis is carried out to examine the level of
awareness among customers and to identify the best sector which provides
qualitative customer service. This becomes relevant in the context of
recommendations of various committees constituted by the Government of
India and the RBI, from time to time, to suggest measures to improve customer
service system the public sector commercial banks of India. Globally,
franchising is considered as a major route to achieve fast track growth in
business. Companies that have achieved growth at exponential rates have done
so, not by attempting to spread their own branches, but by associating with
like-minded people, who provide, in addition to other sources, finance and
entrepreneurial talents. This should be seen as a perfect example of leveraging
a business by brings in external resources. Franchising is a contractual
agreement between independent firms, which calls for coordinated operation of
the unified chain towards a common goal. The functioning of such a network
will be riddled with numerous issues between the partners. Clarity in the larger
objectives to be achieved by the network and on the roles that the individual
partners take up becomes important factors that determine the success of the
network.
The major development in the marketing literature is emergence of services

marketing as a domain. As pointed out by Payne (2002) during the 1980's the
emphasis of marketing was on services marketing (The major reason for the
evaluation and growth of services marketing as an off shoot of marketing is due
to the vibrant service sector - the part of the country's economy represented by
a spectrum of services - like legal services, restaurants, saloons, insurance, dry
cleaning, telecommunications, cinema, mail service, long distance phone call,
electricity, passenger transportation, repairs etc).
But services are not something very new. Hiring mercenaries, entertainment,
finance services are offered to the market even before the era of Christ. Service
is as old as agricultural sector. Now, at the dawn of the new millennium service
is the most vibrant sector in most developed and developing economies.
Furthermore, many service activities are not accounted like, the services of
domestic help, maid, laundry, platform, restaurants, saloons, etc. If these
activities are accounted the service sector will grab a higher share of Gross
Domestic Product (GDP).
Marketing is defined as the performance of business activities that direct the

flow of goods from the producer to the consumers. Paul Mazur defines
marketing s the delivery of standard of living. By satisfying existing needs of
the consumers and creating new desires for better and improved products
marketing sets the pattern of consumption and improves the living standards of
the people.
According to Peter Drucker, marketing is the only distinguishing and unique
functions of business. If we want to know what a business is we have to start
with its purpose. And its purpose must lie outside the business itself In fact, it
must lie in society since a business enterprise is an organ of society. There is
only one valid definition of business purpose that is to create a customer.
Theodore Levitt expressed the management must think of itself not as
producing products but as providing customer-creating value satisfaction. It
must push this idea into every nook and cranny of the organization. Otherwise
the company will be merely a series of pigeonhold parts with no consolidating
sense of purpose of direction. In short, the organization must learn to think of
itself not as producing goods or services but as buying customers, as doing
things that will make people want to do business with it.
According to Peter Drucker the neglect of marketing is one of the main factors
which keep an economy underdeveloped. He strongly argues that Marketing
might by itself go far toward changing the entire economic tone of the existing
system without any change in methods of production,
Marketing is the design, organization and implementation of economic and

social programmes to influence public participation in a nation's development.
This involves techniques of marketing research, product planning, pricing,
communication and distribution.
Marketing as conceived and practiced by the more mature economies has two
basic tasks, namely to direct the use of resources in conformity with demand;
and to aid in making the economy more dynamic.'
In the more sophisticated economies of the West it is perhaps inevitable that the
marketing concept came into ascendancy as an overriding philosophy of
management. The economies of such countries have often been described as
market-oriented. An important factor in this development has been the
existence of substantial competition among firms catering to the same market.
In recent years, this competition has become more severe owing to rising
discretionary income, the movement of firms into new and varied product lines,
and growing cross line product competition wherein a second car competes
with vacation travel.
The American Marketing Association defines channel of distribution as an

organized network of agencies and institutions which, in combination perform
all the activities required to link producers with users to accomplish the
marketing task.
Pankaj Munjal in his article “Smart Launch in Tamil Nadu” said “It is high
time we sit and take a closer look at the 14 million to 4.5 million ratios of
cycles to two wheelers. If the nation has to progress, let us not limit ourselves
to 4.5 million two wheelers users and instead current rate on that population
which is the real India. Let us try and make a difference in the true sense.
T. Jayashree has made “A Study on customer satisfaction of Hero Honda Motor

Cycle with reference to free service rendered by Gem Motors”. She has given
the following conclusion in her study. The dealer can improve the quality of
service by appointing trained people and they should pay more attention on the
complaint mentioned by the customer and they should give details about
unique feature, warranty schemes, operating features and safe riding of the
vehicle.
Senthil Kumar in his study, “Customer satisfaction of TVS vehicles with

specific reference to M/s. Sarathi Agencies”. He has conducted in his study is
that the spares should be made readily available and dealer should appoint
more skilled mechanics and service charge should be reduced and more
advertisements should be made for new vehicle.
Sasikala has made “A Study on Customer satisfaction of TVS group of vehicles

(Mopeds, Scooters & Bikes) in Indo Shell Agency Division”. Findings in her
study is, that the dealer should improve the quality of sales, service and after
sales service be delivered in a reasonable amount of time keeping in
perspective, the completion
service and delivery speed. Interest is shown in old vehicles even if the period
of the vehicles is owned more so that the customer will be satisfied.
Pawan Kant Munjal5 in his article “Pole position” said. The world over
motorcycles is the leading two wheelers. It is only in Italy, India and Indonesia
where you see scooters dominating but now motorcycles are ahead in India too,
due to many Indo-Japanese new ventures that pushed up sales. He graciously
allocated credit to TVS Suzuki, Kawazaki, Bajaj and Escorts, Yamaha 100 cc
like for offering well.
Anand Prakash6 of product planning in “Honda motor cycle and Scooter India
Pvt. Ltd.,” in his article “Bike Test” said, the customer is more interested in
pricing rather than looking at non essential functionality.
According to Joe Rocket dealers, “let your customers know that the mother
ship wants to hear from them”. The newly remodeled www.joerocket.com lets
JR fans submit photos, stories and accounts of their Joe Rocket experiences.
The site also showcases 2005 products with updated photos and imagery, and
features racing pictures, video dips and news posts of various two wheelers.
This article reports that with fuel prices soaring above $3 a gallon, sales of
motor scooters are booming in the U.S. Thomas Vorpahl, owner of Vespa
Atlanta in Duluth, Georgia, says that sales have risen sharply this spring, partly
because scooters can average 60 to 70 mpg. Paolo Timoni, president of Piaggio
Group America Inc., said that Vespa surveyed 1,000 Americans to see if they
would consider a scooter, and
30 percent said yes. They estimate that they would use their two wheelers for
35 percent of the miles they now drive in their cars.
1.3 SCOPE OF THE STUDY
1) The study helps in identifying the market potential towards
various Two Wheeler Finance companies.
2) The study helps in identifying the competitors of ICICI Bank.
3) The study helps in conducting further market study in the
relevant topic.
4) The study helps in identifying the market strength and
weakness.
1.4 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
The main objective of the research study is to formulate the strategies
for prospecting in two-wheeler financing.
SECONDARY OBJECTIVES
 To identify the factors which influence the customers in choosing

their financiers.
 To study the effectiveness of the existing promotional strategies on

prospecting financiers.
 To identify the promotional strategies that would enhance the success
of ICICI Bank.
 To determine the effectiveness of the proposed strategies with

relevant statistical techniques.
 To conclude a comprehensive promotional strategy for ICICI Bank

in two-wheeler financing.
1.5 RESEARCH METHODOLOGY
The Research Methodology adopted for the project is in line with the
requirements of the objectives of the project.
The following are the methods adopted for the project.
 The Research Design is made as per the requirements of the
project.
 For the secondary data collection, the information in the records
of the company proved to be sufficient.
 For the primary data collection, the researcher has preferred the
survey method to the other methods. This is in line with the
objectives of the project.
 In the survey method, the researcher chose to undertake field
work. This is because there is a perception that in the geographical
area in which he was to conduct the survey, better and quicker
data was possible to be collected only through direct field work.
 In the field work, instead of choosing any interviews or recorded
observations, the researcher chose to incorporate all the questions
in form of a questionnaire.
SAMPLE SIZE
The sample size is taken as 100 respondents.

PILOT SURVEY
The questionnaire was designed and surveyed with 25 respondents.
Then the final questionnaire was restructured with necessary changes.
ANALYSIS TOOLS ADOPTED FOR THE STUDY
The analysis tools used for the study are as follows:
 Simple percentage method
 Chi-square test
 Pie diagram
 Bar diagram
1.6 LIMITATIONS OF THE STUDY
The limitations of the study are as under:
 The study is limited only ICICI in Chennai city.
 The duration study is only four months.
 Some of the respondents are not willing to answer the entire
question; hence there may be bias in the data collection.
 The number of respondents is limited to 100.

CHAPTER - II
ICICI BANK – PROFILE
ICICI Bank is India's second-largest bank with total assets of Rs.
3,849.70 billion (US$ 82 billion) at September 30, 2008 and profit after tax Rs.
17.42 billion for the half year ended September 30, 2008. The Bank has a
network of about 1,400 branches and 4,530 ATMs in India and presence in 18
countries. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialised subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. The Bank currently has subsidiaries in the United Kingdom,
Russia and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has
established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE) .
History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an

Indian financial institution, and was its wholly-owned subsidiary. ICICI's
shareholding in ICICI Bank was reduced to 46% through a public offering of
shares in India in fiscal 1998, an equity offering in the form of ADRs listed on
the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited
in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was
formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term
project financing to Indian businesses. In the 1990s, ICICI transformed its
business from a development financial institution offering only project finance
to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank
or financial institution from non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context

of the emerging competitive scenario in the Indian banking industry, and the
move towards universal banking, the managements of ICICI and ICICI Bank
formed the view that the merger of ICICI with ICICI Bank would be the
optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger
would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the
ability to participate in the payments system and provide transaction-banking
services. The merger would enhance value for ICICI Bank shareholders
through a large capital base and scale of operations, seamless access to ICICI's
strong corporate relationships built up over five decades, entry into new
business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and
its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI
Bank approved the merger of ICICI and two of its wholly-owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. The merger was approved by shareholders
of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai
and the Reserve Bank of India in April 2002. Consequent to the merger, the
ICICI group's financing and banking operations, both wholesale and retail,
have been integrated in a single entity.
OPERATIONS
Operations provide the interface between the clients and the
organization.
The Operations develops and maintains the systems and the processes
through which any business transaction in the organization takes place. The
operations section has the following key functions:
 Development of operation channels
 Maintaining the processes of the business
 System handling, maintenance and development
 Providing the link between all the process departments
The operation is a centralized section and monitors and controls the
entire process of a request for a policy till the time the policy is written and
given to the client. The section also monitors the entire period
The responsibility of operations department is:
 Develop an effective business channel
 Develop a system with the least “Turn Around Time”
 Develop and maintain an error free, zero defect, efficient
and accurate operation channel.

SERVICES
Service function caters to the needs of the policyholders and advisors.
The major areas under services are:
1. Call centers
2. Customer servicing
3. Advisor Servicing
4. Developing and presenting an image of quality service to the world at
large
In today’s era of cut throat competition, it the service aspect of an
organization that marks the line between the market leader and the rest. This
onus lies with all the service personnel to do this and to maintain the service
culture constantly.
ACTUARIAL FUNCTION
An actuary is an expert in statistics and it is obvious what his function
would be. The actuarial department is responsible for studying market trends
and designing products and pricing them suitably. It conducts continuous
research to see how suitable the products are. The actuary will also conduct a
profitability analysis to assess the return on capital the shareholders will get.
The main functions of the actuary are:
 Product design, development and pricing
 Evaluating the company’s liabilities, determining the surplus at
the year-end, and recommending a product mix for distribution
 Monitoring of solvency
 Preparing statutory returns

 Doing post-distribution analysis for future use.
Once the product is approved internally, it is the function of the actuary
to get it approved by the IRDA. Under IRDA regulations, an actuary has to be
a full-time employee of the company. It is expected that this would facilitate
day-to-day involvement of the actuary in the company. In most other countries,
actuaries are mere consultants advising the company on strategies. Product
Development: Within product development, the role of the actuary is varies. It
is not sufficient that a new product is developed. The challenge is in constantly
monitoring existing products and determining how to improve them for the
policyholders and the shareholders. The actuary will;
 Design new products/review existing ones
 Identify product features with information from marketing and
distribution
 Price the product in keeping with market trends
 Get the product approved
Once the products are in place, the actuary’s duties in financial
management and product review begin.
Financial Management: Once the products are in the market, the actuary
will evaluate them annually to fix a value on the company’s liabilities. A
periodic review will give an idea of the surplus with the company at the year-
end. The actuary will then decide how much of that surplus has to be passed on
to policyholders as bonus. The IRDA also prescribes a 7.5 percent return to
shareholders. It is the actuary’s job to ensure this obligation is met without
affecting policyholder commitments. The actuary will:

 Conduct an annual valuation
 Determine surplus by year-end
 File returns to IRDA
 Monitor financial positions of the company and provide
inputs for claims settlement on that basis
The investigations of the actuary into the market, along with the
financial situation of the company, will act as inputs for the underwriters and
other departments of the insurance company.
Other functions: When it comes to settlement of claims and using the
investible surplus, the insurance company relies on the market experience of
the actuary. The analysis of the finances and market trends will influence the
underwriter’s evaluation of an application and the investment policy of the
company.
The actuarial department provides inputs for the company’s policy on:
 Re-insurance
 Underwriting
 Investment
The actuary’s analysis of profitability, mortality (the death rate),
morbidity (the incidence of sickness in a group of well people), policy lapses
and expenses of the company will be the basis for any changes in product
development, pricing, marketing and the settlement of claims.

CHAPTER - III
DATA ANALYSIS & INTERPRETATION

Table 3.1
Age of the respondents
S.No Age No.of.Respondents %
1 21-24 years 12 12%
2 25-28 years 17 17%
3 29-32 years 11 11%
4 33-36 years 23 23%
5 Above 36 years 37 37%
Total 100 100%
Source : Primary data
INTEFERENCE
Table 3.1 shows that maximum of the respondents (37%) are
above 36 years followed by others
Chart 3.1
Age of the respondents
Table 3.2
Educational qualification of the respondents
Educational No.of.Respondents %
Qualification
UG 19 19%
PG 24 24%
Professional 33 33%
Others 24 24%
Total 100 100%
INTEFERENCE
Table 3.2 reveals that sizeable of the respondents 33% is
professional followed by Post graduates and others (24%)
Chart 3.2
Educational qualification of the respondents
Table 3.3
Marital status of the respondents
Marital status No.of.Respondents %
Married 46 46%
Single 54 54%
Total 100 100%
INFERENCE
Table 3.3 indicates that majority of the respondents (54%) one
single followed by married (46%).
Chart 3.3
Marital status of the respondents
Table 3.4
Occupation of the respondents
Occupation No.of.Respondents %
State govt 13 13%
employees
Central Govt 22 22%
employees
Business 17 17%
Others 48 48%
Total 100 100%
INFERENCE
Table 3.4 shows that maximum of the respondents (48%)
one others followed by central govt employees (22%)
Chart 3.4
Occupation of the respondents
Table 3.5
Monthly income of the respondents
Monthly income No.of.Respondents %
Upto Rs.25000 42 42%
Rs.25000-50000 27 27%
Rs.50001-100000 13 13%
Rs.100000 above 18 18%
Total 100 100%
INFERENCE
Table 3.5 shows that maximum of the respondents have monthly income
up to Rs. 25,000 followed by the income group between Rs.25001-Rs.50000
(27%) followed by others
Chart 3.5
Monthly income of the respondents
Table 3.6
Nature of the family respondents
Nature of family No.of.Respondents %
Nuclear family 46 46%
Joint family 54 54%
Total 100 100%
INFERENCE
Table 3.6 ascertains that a majority of the respondents (54%) one
living joint family followed by nuclear family (46%)
Chart 3.6
Nature of the family respondents
TABLE-3.7
FINANCE COMPANIES IN DEALERSHIP
FINANCE NO. OF % OF
COMPANIES RESPONDENTS RESPONDENTS
ASHOK LEYLAND
FINANCE 10 10.64
CENTURION BANK 15 15.96
HDFC BANK 20 21.28
BAJAJ AUTO
FINANCE 8 8.51
ING VYSYA BANK 5 5.32
TATA FINANCE 3 3.19
ICICI BANK 25 26.60
OTHERS 14 14
TOTAL 100 100
INTERPRETATION
The above table 3.7 states the finance companies in the dealership.
8(8.51%) of the respondents said that private financiers are in the dealership,
25(26.60%) of the respondents said that ICICI Bank is their financier,
20(21.28%) of the respondents dealers said HDFC Bank, 15(15.96%) of the
respondents said Centurion Bank, 10(10.64%) of the respondents dealers said
Ashok Leyland Finance, Bajaj Auto Finance is for 8(8.51%) and 5(5.32%) of
the respondents said that ING Vysya Bank are their financier, 3(3.19%) of the
respondents said Tata Finance is their financier. Hence from the above table it
is inferred that for majority of the dealers financiers are ICICI Bank.
GRAPH 3.7
TABLE 2
FINANCE PLAYERS WHO TAKE THE LEADING ROLE
FINANCE NO. OF % OF
COMPANIES RESPONDENTS RESPONDENTS
ASHOK LEYLAND
FINANCE 7 8.43
HDFC BANK 20 24.10
BAJAJ AUTO
FINANCE 5 6.02
TATA FINANCE 2 2.41
ICICI BANK 30 36.14
OTHERS 12 12
TOTAL 100 100.00
INTERPRETATION
The above table 3.8 states the finance players who take a leading role in
their dealership. 30(36.14%) of the respondents said that ICICI Bank are
leading, 20 (24.10%) of the respondents said that HDFC Bank are leading,
10(12.05%) of the respondents replied that either Centurion Bank are leading,
7 (8.43%) of the respondents said that Ashok Leyland Finance plays lead role
among the dealership companies, 5 (6.02%) of the respondents opinion is that
Bajaj Auto or private financiers play a leading role, 4(4.82%) of the
respondents said that ING Vysya Bank plays leading role, 2 (2.41%) of the
respondents said that Tata Finance plays leading role. Hence, from the above
table we can conclude that ICICI Bank takes a leading role.

GRAPH 3.8
TABLE-3.9
WHETHER THE MOTOR COMPANY HAVE LOCAL
TIE-UP WITH FINANCE COMPANY
PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

YES 35 35%
NO 65 65%
TOTAL 100 100%
INTERPRETATION
The above table 3.9 states whether the motor company have local tie-up
with the finance companies. 65 (65%) of the respondents said that the motor
companies do not have local tie up with the motor companies, 35 (35%) of the
respondents said that the companies have tie up. Hence from the above table
we can find that majority of the motor companies do not have local tie up with
the finance companies.

GRAPH 3.9
WHETHER THE MOTOR COMPANY HAVE LOCAL

TIE-UP WITH FINANCE COMPANY
35%
65%
YES NO
TABLE 3.10
FINANCE COMPANY WITH WHICH THE MOTOR
COMPANY HAS TIE-UP
NO. OF
% OF
FINANCE RESPONDENT
RESPONDENTS
S
ASHOK LEYLAND
3 8.57
FINANCE
HDFC BANK 5 14.29
BAJAJ AUTO
4 11.43
FINANCE
TATA FINANCE 2 5.71
ICICI BANK 10 28.57
OTHERS 6 17.14
TOTAL 35 100
INTERPRETATION
The above table 3.10 represents the motor companies which has local tie
up with the finance companies. 10(28.57%) of the companies have tie up with
ICICI Bank, 6 (17.14%) of the companies have tie up with private financiers, 5
(14.29%) of the companies have tie up with HDFC Bank, 4 (11.23%) of the
companies are tied up with Bajaj Auto Finance, 3 (8.57%) of the companies
have tie up with either Ashok Leyland Finance or ING Vysya Bank, 2(5.71%)
of the companies have tie with either Centurion Bank or Tata Finance. Hence,
from the above table we can conclude that majority of the motor companies
have tie up with ICICI Bank.

GRAPH 3.10
FINANCE COMPANY WITH WHICH THE MOTOR

COMPANY HAS TIE-UP
30.00
28.57
25.00
% OF RESPONDENTS
20.00
17.14
15.00 14.29
11.43
10.00
8.57 8.57
5.71 5.71
5.00
0.00
ASHOK C ENTURION HDFC B AJ AJ ING V Y SA TFL IC IC I OTHER S
LEY LAND A UTO
FINANCE COMPANIES
TABLE 3.11
FACTORS INFLUENCING THE CUSTOMERS TO CHOOSE
THEIR FINANCIERS
WEIGHTED AVERAGE RANK METHOD
WEGHTED WEIGHTED
PARTICULARS 1 2 3 4 5 RANK
TOTAL AVG.
ATTRACTIVE
60 23 5 7 5 426 42.6 III
SCHEMES
INTEREST % 75 8 7 5 5 443 44.3 I
ADVERTISEMENT 70 14 5 6 5 438 43.8 II
COUNTER STAFFS
40 25 11 17 7 374 37.4 V
MARKETABILITY
OTHERS 50 28 12 5 5 413 41.3 IV
INTERPRETATION
The above table 3.11 stages the factors influencing the customers to
choose their financiers. Interest percentage takes the first place for a customer
to choose their financiers, followed by advertisement, attractive scheme, other
factors and finally the counter staff’s marketability. Hence from the above table
we can find that interest percentage takes the first rank for the customers to
choose their financiers.

GRAPH 3.11
FACTORS INFLUENCING THE CUSTOMERS TO CHOOSE

THEIR FINANCIERS
41.3 (IV) 42.6 (III)
37.4 (V)
44.3 (I)
43.8 (II)
ATTRACTIVE SCHEMES
INTEREST %
ADVERTISEMENT
COUNTER STAFFS MARKETABILITY
OTHERS
TABLE – 3.12
FINANCE COMPANIES BASED ON ATTRACTIVE SCHEMES
FINANCE WEIGHTED WEIGNTED

1 2 3 4 5 678 9 RANK
COMPANIES TOTAL AVG.
ALF 45 26 15 8 3 1 2 0 0 791 17.58 V
BAFL 75 6 8 4 2 2 0 3 0 827 18.38 IV
ICICI 80 8 6 0 2 1 0 2 1 845 18.78 II
CENTURION 70 12 5 6 4 3 0 0 0 829 18.42 III
ING VYSYA 70 3 6 8 3 2 4 3 1 786 17.47 VI
HDFC 75 12 8 3 0 1 0 0 1 850 18.89 I
TFL 50 12 16 5 9 3 1 0 4 752 16.71 VIII
OTHERS 50 22 5 4 12 3 1 0 3 763 16.96 VII

(source :Primary data)
INFERENCE
The above table 3.12 represents the rank of finance companies based on
the attractive schemes HDFC Bank takes the first place followed by ICICI
Bank, Centurion Bank followed by BAFL, ALF, ING Vysya Bank, other
financiers and TFL. Hence from the above table we can find that HDFC is
placed first among the finance companies based on attractive schemes.

GRAPH 3.12
FINANCE COMPANIES BASED ON ATTRACTIVE

SCHEMES
16.96 (VII) 17.58 (V)
16.71 (VIII) 18.38 (IV)
18.89(I)
18.78 (II)
17.47 (VI) 18.42 (III)
ALF BAFL ICICI CENTURION

ING VYSYA HDFC TFL OTHERS
TABLE 3.13
FINANCE COMPANIES BASED ON INTEREST %

1 2 3 4 5 6 7 8 9 RANK
ALF 75 8 6 3 2 3 2 0 1 908 20.18 I
BAFL 85 5 4 3 1 0 1 1 0 861 19.13 II
ICICI 80 6 5 2 4 0 0 3 0 841 18.69 V
CENTURION 75 8 6 9 2 0 0 0 0 845 18.78 III
ING VYSA 70 5 9 4 3 4 2 3 0 800 17.78 IV
HDFC 80 4 5 4 3 1 2 0 1 837 18.60 VI
TFL 65 8 5 9 5 4 2 1 1 788 17.51 VII
OTHERS 50 12 16 5 4 6 4 0 3 747 16.60 VIII
INFERENCE
the interest percentage. ALF stands first followed by BAFL, Centurion Bank,
ING Vysya Bank, ICICI Bank, HDFC Bank, TFL and others. Therefore from
the above table we can find that ALF takes the first rank among the finance
companies based on the interest percentage.

GRAPH 3.13
FINANCE COMPANIES BASED ON INTEREST %
16.60 (VIII) 20.18 (I)
17.51 (VII)
19.13 (II)
18.69 (V)
17.78 (IV)
18.60 (VI)
18.78 (III)

ING VYSA HDFC TFL OTHERS
TABLE 3.14
FINANCE COMPANIES BASED ON ADVERTISEMENT

1 2 3 4 5 6 7 8 9 RANK
ALF 85 0 2 1 2 2 2 2 4 817 18.16 V
BAFL 90 2 4 3 1 0 0 0 0 877 19.49 III
ICICI
90 10 0 0 0 0 0 0 0 890 19.78 I
CENTURION 85 4 3 5 2 1 0 0 0 862 19.16 IV
ING VYSYA 25 12 17 9 24 6 2 4 1 653 14.51 VII
HDFC 90 5 2 3 0 0 0 0 0 882 19.60 II
TFL 0 17 14 21 19 6 9 4 10 524 11.64 VIII
OTHERS 25 15 16 9 11 10 9 0 5 638 14.18 VI
INFERENCE
the advertisement. ICICI Bank takes the first place among the finance
companies based on advertisement, followed by HDFC Bank, BAFL,
Centurion Bank, ALF followed by other financiers like ING Vysya and TFL.
Hence from the above we can find that ICICI Bank stands first among the
financiers based on advertisement.

GRAPH – 3.14
FINANCE COMPANIES BASED ON ADVERTISEMENT
14.18 (VII) 18.16 (V)
11.64 (VIII)
19.49 (III)
19.60 (II)
19.78 (I)
14.51 (VI)
19.16 (IV)

TABLE – 3.15
FINANCE COMPANIES BASED ON COUNTER STAFFS MARKETABILITY

1 2 3 45678 9 RANK
ALF 80 6 5 7 2 0 0 0 0 855 19.00 IV

BAFL 75 4 6 8 4 2 1 0 0 828 18.40 V
ICICI 90 8 2 0 0 0 0 0 0 888 19.73 I
CENTURION 85 6 7 2 0 0 0 0 0 874 19.42 III
ING VYSYA 75 5 4 2 1 6 0 5 2 796 17.69 VI
HDFC 90 6 3 1 0 0 0 0 0 885 19.67 II
TFL 50 12 14 5 8 6 1 4 0 749 16.64 VIII
OTHERS 55 14 12 4 6 4 5 0 0 776 17.24 VII
INFERENCE
the counter staff’s marketability ICICI Bank stands first among the finance
company based on the counter staffs marketability followed by HDFC Bank,
Centurion Bank, ALF, BAFL, ING Vysya Bank, other financiers and TFL.
Hence from the above table we can find that ICICI is rank first among the
finance companies, based on the counter staff marketability.

GRAPH 3.15
FINANCE COMPANIES BASED ON COUNTER STAFFS

MARKETABILITY
17.24 (VII) 19.00 (IV)
16.64 (VIII)
18.40 (V)
19.67 (II)
19.73 (I)
17.69 (VI) 19.42 (III)

TABLE 3.16
FINANCE COMPANIES BASED ON PROMPTNESS & PAYMENTS

1 2 3 4 5 6 7 8 9 RANK
ALF 90 4 5 1 0 0 0 0 0 883 19.62 I
BAFL 60 9 7 8 6 10 0 0 0 779 17.31 VII
ICICI 85 12 3 0 0 0 0 0 0 882 19.60 II
CENTURION 85 4 3 5 1 2 0 0 0 861 19.13 IV
ING VYSYA 90 1 0 2 2 0 0 5 0 850 18.89 V
HDFC 90 4 2 4 0 0 0 0 0 880 19.56 III
TFL 60 6 18 5 6 5 0 0 0 794 17.64 VI
OTHERS 55 10 14 6 4 4 6 0 1 764 16.98 VIII
INFERENCE
The above table 3.16 represents the service level of finance companies
based on promptness and payments. ALF stands first followed by ICICI Bank,
HDFC Bank, Centurion Bank, ING Vysya Bank, TFL, BAFL, other financers.
Hence from the above table we cane find that ALF provides best promptness
and payments.
GRAPH 3.16
FINANCE COMPANIES BASED ON PROMPTNESS &

PAYMENTS
16.98 (VIII) 19.62 (I)
17.64 (VI)
17.31 (VII)
19.56 (III)
19.60 (II)
18.89 (V) 19.13 (IV)

TABLE 3.17
FINANCE COMPANIES BASED ON EASE
OF DOCUMENTATION

1 2 3 4 5 6 7 8 9 RANK
ASHOK
LEYLAND 80 4 3 4 4 5 0 0 0 837 18.60 VII
FINANCE
CENTURION
80 3 8 4 0 2 3 0 0 841 18.69 V
BANK
HDFC BANK 85 9 5 1 0 0 0 0 0 878 19.51 I
BAJAJ AUTO
80 6 2 1 4 5 2 0 0 834 18.53 VIII
FINANCE
ING VYSYA
85 2 3 1 4 2 3 0 0 845 18.78 IV
BANK
TATA
85 7 4 3 1 0 0 0 0 872 19.38 II
FINANCE
ICICI BANK 80 5 2 6 4 1 1 1 0 839 18.64 VI
OTHERS 85 4 3 1 1 4 2 0 0 851 18.91 III
INFERENCE
based on Ease of Documentation. ICICI Bank stands first followed by HDFC
Bank, followed by, ING Vysya Bank, BAFL, TFL, ALF, Centurion Bank and
others. Hence from the above table we cane find that ICICI Bank provides best
ease of documentation.
GRAPH 3.17
FINANCE COMPANIES BASED ON EASE ON DOCUMENTATION
19.51 (I)
19.38 (II)
19.60
19.40
19.20
18.91 (III)
18.78 (IV)
19.00
WEIGHTED AVERAGE
18.69 (V)
18.64 (VI)
18.60 (VII)
18.80
18.53 (VIII)
18.60
18.40
18.20
18.00
ASHOK CENTURION HDFC BA J AJ ING VYSYA TA TA ICICI B A NK OTHERS
LEYLAND AUTO FINA NCE
FINANCE FINA NCE
FINANCE COMPANIES
TABLE 3.18
FINANCE COMPANIES BASED ON LEAD TIME CREDIT DECISION

1 2 3 4 5 6 7 8 9 RANK
ALF 90 2 3 5 0 0 0 0 0 877 19.49 III
BAFL 75 6 5 4 2 4 3 1 0 819 18.20 VII
ICICI 90 8 2 0 0 0 0 0 0 888 19.73 I
CENTURION 85 5 4 3 3 0 0 0 0 866 19.24 IV
ING VYSYA 85 3 3 2 4 1 1 1 0 851 18.91 V
HDFC 90 6 3 1 0 0 0 0 0 885 19.67 II
TFL 75 5 4 6 3 4 2 1 0 818 18.18 VIII
OTHERS 80 4 4 5 5 2 0 0 0 843 18.73 VI
INFERENCE
based on lead time Credit decision. ICICI Bank stands first followed by HDFC
Bank, ALF, Centurion Bank, ING Vysya Bank, and other financers like BAFL
and TFL. Hence from the above table we can find that ALF provides best lead
time Credit Decision.

GRAPH 3.18
FINANCE COMPANIES BASED ON LEAD TIME CREDIT

DECISION
19.73 (I)
19.67 (II)
20.00
19.49 (III)
19.24 (IV)
19.50
18.91 (V)
18.73 (VI)
19.00
18.18 (VIII)
18.20 (VII)
18.50
18.00
17.50
17.00
ALF BAFL ICICI CENTURION ING HDFC TFL OTHERS
VYSYA
TABLE 3.19
FINANCE COMPANIES BASED ON RESPONSE OF SCHEME
REQUIREMENTS

1 2 3 4 5 6 7 8 9 RANK
ALF 80 5 6 2 4 1 2 0 0 850 18.89 V
BAFL 90 1 3 4 1 0 0 1 0 870 19.33 III
ICICI 90 6 4 0 0 0 0 0 0 886 19.69 I
CENTURION 85 3 6 4 1 1 0 0 0 864 19.20 IV
ING VYSYA 80 2 4 3 4 2 1 1 3 818 18.18 VI
HDFC 90 3 4 3 0 0 0 0 0 880 19.56 II
TFL 70 4 5 8 2 4 2 1 4 783 17.40 VIII
OTHERS 70 6 5 4 3 5 7 0 0 793 17.62 VII
INFERENCE
based on response of scheme requirements. ICICI Bank stand first followed by
HDFC Bank, BAFL, Centurion Bank, ALF, ING Vysya Bank, TFL and other
financers. Hence from the above table we cane find that ICICI Bank provides
best response of scheme requirements.

GRAPH 3.19
FINANCE COMPANIES BASED ON RESPONSE OF SCHEME

REQUIREMENTS
17.62 (VII)
17.4 (VIII)
19.56 (II)
FINANCE COMPANIES
18.18 (VI)
19.2 (IV)
19.69 (I)
19.33 (III)
18.89 (V)
16 16.5 17 17.5 18 18.5 19 19.5 20
WEIGHTED AVERAGE
TABLE – 3.20
PERCENTAGE OF DEALER INCENTIVE OFFERED BY
ASHOK LEYLAND FINANCE
NO. OF
INCENTIVE % % OF RESPONDENTS
RESPONDENTS
1–2 0 0
2–3 1 10
3–4 3 30
4–5 6 60
TOTAL 10 100
INFERENCE
The above table 3.20 represents the percentage of dealer incentive
offered by Ashok Leyland finance. 6 (60%) of the incentive provided by Ashok
Leyland is between 4% - 5%, 3 (30%) of the incentive provided by Ashok
Leyland lies between 3% - 4%, 1 (10%) of the incentive provided by Ashok
Leyland is between 2%-3%, none of the dealers are provided with 1%-2%
incentive. Hence from the above table it is inferred that most of the dealers are
provided with 4%-5% incentive by the Ashok Leyland Finance Limited.

GRAPH 3.20

ASHOK LEYLAND FINANCE Ltd.,
60%
60
50
% OF RESPONDENTS
40
30%
30
20
10%
10
0%
0
1–2 2–3 3–4 4–5
INCENTIVE %
TABLE 3.21
CENTURION BANK
NO. OF
INCENTIVE % % OF RESPONDENTS
RESPONDENTS
1-2 0 0.00
2-3 2 13.33
3-4 4 26.67
4-5 9 60.00
TOTAL 15 100.00
INTERPRETATION
offered by Centurion Bank. 9 (60%) of the incentive provided by Centurion is
between 4% - 5%, 4 (26.67%) of the incentive provided by Centurion lies
between 3% - 4%, 2 (13.33%) of the incentive provided by Centurion is
between 2%-3%, none of the dealers are provided with 1%-2% incentive.
Hence from the above table it is inferred that most of the dealers are provided
with 4%-5% incentive by the Centurion Bank.

GRAPH 3.21

CENTURION BANK
60.00%
60.00
50.00
% OF RESPONDENTS
40.00
26.67%
30.00
20.00
13.33%
10.00
0.00%
0.00
1–2 2–3 3–4 4–5
INCENTIVE %
TABLE 3.22
PERCETAGE OF DEALER INCENTIVE
OFFERED BY HDFC BANK
INCENTIVE % NO. OF RESPONDENTS % OF RESPONDENTS

1–2 1 5.00
2–3 3 15.00
3–4 8 40.00
4–5 8 40.00
TOTAL 20 100.00
INFERENCE
offered by HDFC Bank. 8 (40%) of the incentive provided by HDFC Bank is
either between 4% - 5% or 3% - 4%, 3 (15%) of the incentive provided by
HDFC Bank is between 2%-3%, 1 (5%)of the dealers are provided with 1%-
2% incentive. Hence from the above table it is inferred that most of the dealers
are provided with 4%-5% or 3%-4% incentive by the HDFC Bank.

GRAPH 3.22

HDFC BANK
60.00%
60.00
50.00
% OF RESPONDENTS
40.00
26.67%
30.00
20.00 13.33%
10.00
0.00%
0.00
1–2 2–3 3–4 4–5
INCENTIVE %
TABLE 3.23
PERCETAGE OF DEALER INCENTIVE OFFERED BY
BAJAJ AUTO FINANCE

1–2 2 25.00
2–3 3 37.50
3–4 3 37.50
4–5 0 0.00
TOTAL 8 100.00
INTERPRETATION
offered by Bajaj Auto Finance. 3 (37.50%) of the incentive provided by Bajaj
Auto Finance is either between 3% - 4% or 2% - 3%, 2 (25%) of the incentive
provided by Bajaj Auto Finance is between 1%-2%, none of the dealers are
provided with 4%-5% incentive. Hence from the above table it is inferred that
most of the dealers are provided with 4%-5% or 3%-4% incentive by the Bajaj
Auto Finance.
GRAPH 3.23

BAJ AJ AUTO FINANCE
0.00%
25.00%
37.50%
37.50%
1–2 2–3 3–4 4–5

TABLE 3.24
PERCENTAGE OF DEALER INCENTIVE OFFERED
BY ING VYSYA BANK
INCENTIVE
NO. OF RESPONDENTS % OF RESPONDENTS
%
1–2 0 0.00
2–3 0 0.00
3–4 1 20.00
4–5 4 80.00
TOTAL 5 100.00
INFERENCE
offered by ING Vysya Bank. 4 (80%) of the incentive provided by ING Vysya
Bank, is between 4% - 5%, 1(20%) of the incentive provided by ING Vysya
Bank lies between 3% - 4%, none of the dealers are provided with either 2%-
3% or 1%-2% incentive. Hence from the above table it is inferred that most of
the dealers are provided with 4%-5% incentive by the ING Vysya Bank.
GRAPH 3.24
PERCENTAGE OF DEALER INCENTIVE OFFERED BY ING

VYSYA BANK
80%
80
70
60
50
% OF RESPONDENTS
40
30
20%
20
10
0% 0%
0
1–2 2–3 3–4 4–5
INC ENTIVE%
TABLE 3.25
PERCETAGE OF DEALER INCENTIVE OFFERED BY
TATA FINANCE

1–2 0 0.00
2–3 3 100.00
3–4 0 0.00
4–5 0 0.00
TOTAL 3 100.00
INTERPRETATION
The above table 3.25 represents the dealer incentive offered by TFL. 3
(100%) of the dealers are offered with 2%-3% of incentives, none of the
dealers are provided with 1%-2%, 3%-4% or 4%-5% of incentives by TFL.
Hence from the above table we can find that all the dealers of TFL are provided
with 2%-3% of incentives.

GRAPH 3.25
PERCENTAGE OF DEALER INCENTIVE OFFERED

BY TATA FINANCE
100
100
90
80
70
% OF RESPONDENTS
60
50
40
30
20
10 0 0 0
0
1–2 2–3 3–4 4–5
INC ENTIVE%
TABLE 3.26
PERCETAGE OF DEALER INCENTIVE OFFERED
BY ICICI BANK

1–2 0 0.00
2–3 5 20.00
3–4 8 32.00
4–5 12 48.00
TOTAL 25 100.00
INFERENCE
offered by ICICI Bank. 12 (48%) of the incentive provided by ICICI Bank is
between 4% - 5%, 8 (32%) of the incentive provided by ICICI Bank lies
between 3% - 4%, 5 (20%) of the incentive provided by ICICI Bank is between
2%-3%, none of the dealers are provided with 1%-2% incentive. Hence from
the above table it is inferred that most of the dealers are provided with 4%-5%
incentive by the ICICI Bank.

GRAPH 3.26
PERCENTAGE OF DEALER INCENTIVE

OFFERED BY ICICI
0%
20%
48%
32%
1–2 2–3 3–4 4–5

TABLE 3.27
PERCETAGE OF DEALER INCENTIVE OFFERED BY OTHERS
(PRIVATE FINANCIERS)
INCENTIVE
NO. OF RESPONDENTS % OF RESPONDENTS
%
1–2 4 50
2–3 3 37.5
3–4 1 12.5
4–5 0 0
TOTAL 8 100
INTERPRETATION
offered by private financiers. 4 (50%) of the incentive provided by private
financiers either between 1% - 2%, 3 (37.5%) of the incentive provided by
private financiers between 2%-3%, 1 (12.5%) of the dealers are provided with
3%-4% incentive. Hence from the above table it is inferred that most of the
dealers are provided with 1%-2% incentive by the private financiers.

GRAPH 3.27

PRIVATE FINANCIERS
0%
13%
49%
38%
1– 2 2– 3 3– 4 4– 5
TABLE 3.28
WHETHER THE DEALER HAS PARTICIPATED IN THE TRADE
FAIRS / MELAS
OPTION NO. OF RESPONDENTS % OF RESPONDENTS

YES 90 90
NO 10 10
TOTAL 100 100
INTERPRETATION
The above table 3.28 represents whether the dealers have participated in
the trade fairs / melas. 90( 90%) of the dealers have participated in the trade
fairs / melas and 10(10%) of the dealers have not participated. Hence from the
above table we can find that most of the dealers have participated in the trade
fairs / melas.
GRAPH 3.28
WHETHER THE DEALER HAS PARTICIPATED IN THE

TRADE FAIRS / MELAS
10%
90%
YES NO
TABLE 3.29
WHETHER ICICI BANK JOINED IN
TRADE SHOWS
PARTICULARS NO. OF RESPONDENTS % OF RESPONDENTS

YES 20 20
NO 80 80
TOTAL 100 100
INFERENCE
The above table 3.29 represents whether ICICI Bank have participated
in the trade shows. 80 (80%) have not participated and 20(20%) have
participated. Hence from the above table we can conclude that most of the
times ICICI Bank has not participated in the trade shows.

GRAPH 3.29
WHETHER ICICI BANK JOINED IN

TRADE SHOWS
20%
80%
YES NO
TABLE 3.30
NO. OF CUSTOMERS WHO TOOK ADVANTAGE OF 0% SCHEME
CUSTOMERS NO. OF RESPONDENTS % OF RESPONDENTS

<15 10 10
15-25 20 20
25-50 35 35
50-75 25 25
75-100 10 10
>100 0 0
TOTAL 100 100
INFERENCE
The above table 3.30 represents the number of customers benefited by
0% scheme. 25-50(35%) of the customers are benefited by 0% scheme, 50-75
(25%) of the customers are benefited by 0% scheme75-100 or less than 15
(10%) of the customers are benefited by 0% scheme. Hence from the above
table we can find that most (25-50) of the customers are benefited by 0%
scheme.
GRAPH 3.30
NO. OF CUSTOMERS WHO TOOK ADVANTAGE

OF 0% SCHEME
35
35
30
25
25
20
% OF RESPONDENTS
20
15
10 10
10
5
0
0
<15 15-25 25-50 50-75 75-100 >100
NO . O F CUSTO MERS
TABLE 3.31
OF 999 SCHEME

<15 3 3
15-25 7 7
25-50 20 20
50-75 30 30
75-100 40 40
>100 0 0
TOTAL 100 100
INFERENCE
The above table 3.31 represents the number of customers benefited by
999 schemes. 75-100(40%) of the customers are benefited by 999 schemes, 50-
75 (30%) of the customers are benefited by 999 schemes, 25-50 (20%) of the
customers are benefited by 999 schemes, and less than (7%) of the customers
are benefited by the 999 scheme. Hence from the above table we can find that
most (75-100) of the customers are benefited by 999 scheme.

GRAPH 3.31
NO. OF CUSTOMERS WHO TOOK ADVANTAGE OF 999

SCHEME
40
40
35
30
30
% OF RESPONDENTS
25
20
20
15
10
7
5 3
0
0
<15 15-25 25-50 50-75 75-100 >100
NO . O F CUSTO MERS
TABLE 3.32
OF 4999 SCHEME

<15 10 10
15-25 15 15
25-50 25 25
50-75 25 25
75-100 25 25
>100 0 0
TOTAL 100 100
INFERENCE
The above table 3.32 represents the number of customers who took
advantage of 4999 scheme. 25% (25-50,50-75 or 75-100) customers took
advantage of 4999 scheme. 15 – 25 (15%) of the customers took advantage of
4999 scheme, less than 15 (10%) of the customers took advantage of the 4999
scheme. Hence from the above table we can find that most of the customers
(25-50, 50-75 or 75-100) took advantage of 4999 scheme.

GRAPH 3.32
NO. OF CUSTOMERS WHO TOOK ADVANTAGE OF 4999

SCHEME
25 25 25
25
20
15
% OF RESPONDENTS
15
10
10
0
<15 15-25 25-50 50-75 75-100 >100
NO . O F CUSTO MERS
TABLE 3.33
OF GIFT SCHEME

<15 10 10
15-25 20 20
25-50 20 20
50-75 25 25
75-100 25 25
>100 0 0
TOTAL 100 100
INFERENCE
The above table 3.33 represents the number of customers who took
advantage of gift scheme. 25% (50-75 or 75-100) customers are benefited by
gift scheme. 20% (25-50 or 15-25) customers took advantage of gift scheme,
less than 15 (10%) took benefit from gift scheme. Hence from the above table
we can find that most of the customers (50-75 or 75-100) customers have
benefited from gift scheme.

GRAPH 3.33
NO. OF CUSTOMERS WHO TOOK ADVANTAGE OF GIFT

SCHEME
25
25
25
20 20
20
% OF RESPONDENTS
15
10
10
0
<15 15-25 25-50 50-75 75-100 >100
NO . O F CUSTO MERS
TABLE 3.34
EFFECTIVENESS OF SALES PROMOTIONAL MEASURES OFFERED BY THE
FINANCE COMPANIES
Extremely Very Somewhat Not very Not at all

Particulars Total
Effective Effective Effective Effective effective
LUCK DIP 30 32 17 12 9 100
PAMPHLETS 80 5 5 5 5 100
BANNERS 75 8 5 5 7 100
LEAFLETS
THRU’ 70 12 8 5 5 100
NEWSPAPERS
SPECIAL
60 24 5 6 5 100
SCHEME
GIFTS 77 7 5 6 5 100
INFERENCE
The above table 3.34 represents the effectiveness of sales promotional
scheme offered by the finance companies. 32 (32%) of the respondents said
that luck dip is very effective, 80 (80%) of the respondents said that pamphlets
are extremely effective, 75 (75%) of the respondents said that banners are
extremely effective, 70 (70%) of the respondents said that leaflets through
newspapers are extremely effective, 60(60%) of the respondents said that
special schemes are extremely effective, 77 (77%) of the respondents are
extremely effective.
GRAPH 3.34
EFFECTIVENESS OF SALES PROMOTIONAL MEASURES

OFFERED BY THE FINANCE COMPANIES
100% 5 7 5 5 5
9
5 5 6 6
5
90% 5 5 5
12 5 8
5
7
80% 8
12
24
17
70%
60%
% OF RESPONDENTS
50%
32
80 77
40% 75
70
60
30%
20%
30
10%
0%
LUCK DIP PAM PHLETS BANNERS LEAFLETS THRU’ SPECIAL SCHEM E GIFTS
NEWSPAPERS
PRO MO TIO NAL MEASURES
EXTREM ELY EFFECTIVE VERY EFFECTIVE SOM EWHAT EFFECTIVE

NOT VERY EFFECTIVE NOT AT ALL EFFECTIVE
TABLE 3.35
CHI SQUARE TEST
EFFECTIVENESS OF SALES PROMOTIONAL MEASURES
OFFERED BY THE ICICI
Extremely Very Somewhat Not Very Not at All

Particulars Total
Effective Effective Effective Effective Effective
LUCK DIP 30 32 17 12 9 100
PAMPHLETS 80 5 5 5 5 100
BANNERS 75 8 5 5 7 100
LEAFLETS
THRU’ 70 12 8 5 5 100
NEWSPAPERS
SPECIAL
60 24 5 6 5 100
SCHEME
GIFTS 77 7 5 6 5 100
Table 3.35 shows that Null Hypothesis (H0): There is no significant
difference between the effectiveness of sales promotional schemes offered by
ICICI Bank.
Alternate Hypothesis (H1): There is significant difference between the
effectiveness of sales promotional schemes offered by ICICI Bank.

CALCULATION OF CHI SQUARE TEST
O E (O-E) (O-E)2 (O-E)2/E

30 65.33 -35.33 1248.21 19.11
80 65.33 14.67 215.21 3.29
75 65.33 9.67 93.51 1.43
70 65.33 4.67 21.81 0.33
60 65.33 -5.33 28.41 0.43
77 65.33 11.67 136.19 2.08
32 14.67 17.33 300.33 20.47
5 14.67 -9.67 93.51 6.37
8 14.67 -6.67 44.49 3.03
12 14.67 -2.67 7.13 0.49
24 14.67 9.33 87.05 5.93
7 14.67 -7.67 58.83 4.01
17 7.5 9.5 90.25 12.03
5 7.5 -2.5 6.25 0.83
5 7.5 -2.5 6.25 0.83
8 7.5 0.5 0.25 0.03
5 7.5 -2.5 6.25 0.83
5 7.5 -2.5 6.25 0.83
12 6.5 5.5 30.25 4.65
5 6.5 -1.5 2.25 0.35
5 6.5 -1.5 2.25 0.35
5 6.5 -1.5 2.25 0.35
6 6.5 -0.5 0.25 0.04
6 6.5 -0.5 0.25 0.04
9 6 3 9.00 1.50
5 6 -1 1.00 0.17
7 6 1 1.00 0.17
5 6 -1 1.00 0.17
5 6 -1 1.00 0.17
5 6 -1 1.00 0.17
(O-E)2/E 90.50
Calculated value of 2 (O-E)2/E = 90.50
Degree of freedom = (r-1) (c-1)
= (6-1) (5-1)
= 20
Tabulated value of 2 at 5% level of significance is 19.337.
Therefore, the calculated value of 2 is more than the tabulated value of
2. Hence null hypothesis is rejected.
There is no significant difference between the effectiveness of sales
promotional schemes offered by ICICI Bank.

CHAPTER - IV
FINDINGS & RECOMMENDATIONS
FINDINGS
 Majority of the dealers financiers are ICICI Bank.
 ICICI Bank takes a leading role among the dealers financiers.
 Majority of the motor companies do not have local tie up with the
finance companies
 Majority of the motor companies have tie up with ICICI Bank.
 Interest percentage takes the first rank for the customers to choose their
financiers
 HDFC Bank is placed first among the finance companies based on
attractive schemes
 ALF takes the first rank among the finance companies based on the
interest percentage
 ICICI Bank finance stands first among the financiers based on
advertisement
 ICICI Bank is rank first among the finance companies, based on the
counter staff marketability

 ALF provides best promptness and payments
 ICICI Bank provides best ease of documentation
 ALF provides best lead time credit decision
 ICICI Bank provides best Response of Scheme requirements.
 Most of the dealers are provided with 4%-5% incentive by the Ashok
Leyland finance.
 Most of the dealers are provided with 4%-5% incentive by the Centurion
finance.
 Most of the dealers are provided with 4%-5% or 3%-4% incentive by
the HDFC Bank.
 Most of the dealers are provided with 4%-5% or 3%-4% incentive by
the Bajaj Auto Finance.
 Most of the dealers are provided with 4%-5% incentive by the ING
Vysya Bank.
 All the dealers of TFL are provided with 2%-3% of incentives.
 Most of the dealers are provided with 4%-5% incentive by the ICICI
Bank.
 Most of the dealers are provided with 1%-2% incentive by the private
financiers.
 Most of the dealers have participated in the trade fairs / melas.
 Most of the times ING Vysya Bank has not participated in the trade
shows.
 Most (25-50) of the customers are benefited by 0% scheme.
 Most (75-100) of the customers are benefited by 999 scheme.
 Most of the customers (25-50, 50-75 or 75-100) took advantage of 4999
scheme.
 Most of the customers (50-75 or 75-100) customers have benefited from
gift scheme.
 The sales promotional schemes like leaflets through newspapers,
banners, pamphlets, special schemes, gifts are extremely effective and
luck dip is very effective.
OTHER OBSERVATION
The dealer incentives offered by the finance companies vary between 1-
5%. It depends upon the volume of sale of the vehicles in a particular dealer.
In certain cases it also depends upon the dealership. For example, high-end
segment of automobiles are not normally encouraged, since it involves more
risk ad also less numbers eg: Royal Enfield.
The average number of vehicles financed by ICICI Bank per month
among the dealers in Chennai varies from 5-50 for a particular month
depending upon the type of the dealer. However by conducting a Trade fairs /
melas, the number of vehicles financed varies from 15-25 during that period.
Thus people welcome trade fairs / melas. Hence conducting of trade fairs is
always for improving the sales.
The customers are keen to see the banners, which are displayed by the
financiers in the dealer showrooms.
Most of the dealers in Chennai welcome the criteria of part PDCs
offered by other financiers. They suggest that ICICI Bank could do more
business if part PDCs are accepted by ICICI Bank.

RECOMMENDATIONS
 The key-performing indicator for ICICI Bank in two-wheeler financing
such as the factors that influence the customer (interest ad attractive
schemes, documentation easiness) need be properly implemented so that
the competitor need not imitate or follow the same.
 The local tie-ups with the dealer need to be improved so that a high
volume of loan disbursements could be materialized. This could be
done by appropriately having strategic tie-ups with the manufacturer,
which would help ICICI Bank to gain entry into dealership
very easily.
 Other competitors offer a facility called Trade Advance to the dealer,
which is not being followed by ICICI Bank. If Trade Advance facility
were offered it would increase the business for ICICI Bank.
 The dealers as well as the customers’ welcome the partial PDCs offered
to customers by other financiers and hence ICICI Bank should use it as
the unique selling proposition.
 More emphasis should be given in advertisements where it lags behind
the competitors. Increased emphasis o the promotional measures like
advertising in local dailies / banners in case of trade fairs / melas will
help in increasing the customer base.

 More emphasis should be given for the customer service after the
disbursement of loans for better relationships with the customers as well
as the dealers.
 The new products introduced in the market could be made sentient
among the customers by scrupulous telemarketing.
 Electronic Clearing facility (ECS) offered by other financiers are
welcomed by people and they facility has to be implemented with
immediate effect to gain more mileage and business.

CHAPTER-V
CONCLUSION
The study would ensure the factors that would influence the prospects in
choosing their financiers. It highlights the effectiveness of various promotional
measures, scheme and factors.
The findings and suggestions would help the company in identifying the
areas of improvement with their competitors. It would in fact facilitate and
refine the existing techniques for prospecting.

A STUDY ON TWO WHEELER FINANCING WITH SPECIAL
REFERENCE TO ICICI BANK LTD.
QUESTIONNAIRE
1. Please tick the finance players in your Dealership?

Ashok Leyland Finance Centurion HDFC
Bajaj Auto Finance ING Vysya TFL
ICICI Citi Financials
Others (Please specify)______________________________
2. Which Finance Player takes the leading role in your dealership?

3. Does your motor company have any local tie-up with Finance
Company?
Yes No
If Yes, Which Finance company?

4 What do you think that influences the customers to choose their

financiers?
(Please Rank the following as to their priority 1st , 2nd..)
Attractive Schemes
Interest %
Advertisements
Counter Staff’s Marketability
Others (Please Specify)_____________________
5. Rank the Finance companies based on the following attributes. *

Attractive Interest Advt. Counter Staffs
Schemes % Marketability
ALF
BALF
ICICI
Centurion
ING Vysya
Citi Financial
HDFC
TFL
Others
6. Rank the Finance companies for their Service level of the following
attributes.*
Promptness Ease of Lead time Response of Scheme

& Payments Documentation Cr. Decision requirements
ALF
BALF
ICICI
Centurion
ING Vysya
Citi Financial
HDFC
TFL
Others
7. What percentage of dealer incentive do these Finance Companies offer

you?
8. How many vehicles are financed by ICICI per month (excluding trade
shows/ special schemes/ gift offers…)?
Please specify the No. Of. Vehicles ___________________________
9. Had your dealership participated in Trade fairs/ Meals?

Yes No
10) If Yes,
i) Does ICICI join you in Trade shows?
Yes No
11) If Yes,
a) How many vehicles had been financed by ICICI in Trade shows?
Please specify the No. Of vehicles __________________________
12) How many customers took advantage of 0% scheme?

(Please check one box.)
<15 customers 25-50 customers 75-100 customers
15-25 customers 50-75 customers >100 customers
Please specify the No. Of customers __________________
13) How many customers took advantage of 999 schemes?

14) How many customers took advantage of 4999 scheme?

15) How many customers availed gift schemes?

15) How do you rate the Effectiveness of the following sales promotional
measures offered by Finance Companies?
(Please check one box for each item).
Extremely Very Somewhat Not Very Not at all
Effective Effective Effective Effective Effective
______________________________________________________________
Lucky dip
Pamphlets
Banners
Leaflets thru’
Newspapers
Special scheme
Gifts
+Gifts
16) Other Comments:

__________________________________________________________
__________________________________________________________
__________________________________________________________
Thank you very much for co-operating Sir/ Madam. Have a nice day!
Name : ________________________
Designation : ________________________
Dealership : ________________________
Category : A B C D
Address : ________________________
Signature & Office seal : ________________________

BIBLIOGRAPHY
 DONALD S. TULL & DELL HAWKINS, Marketing Research,
Prentice Hall of India, 2003.
 KOTHARI C. R, Research Methodology, Vishwa Prakashan, 2001.
 PHILIP KOTLER & GARY ARMSTRONG, Principles of
Marketing, Prentice Hall of India, 2001.
 PILLAI & BAGAWATHI, Marketing Management, S. Chand &
Sons, 2000.
 DR. SHARMA D.D, Marketing Research, Sulthan Chand & Sons,
2002.
 SUJA NAIR. N, Consumer Behaviour, Himalaya Publishing House,
2002.
 S.P GUPTA, Statistical Methods, Sulthan Chand & Sons, 2003.

2 Wheeler Analysis-Icici

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A STUDY ON TWO WHEELER FINANCING WITH SPECIAL

REFERENCE TO ICICI BANK LTD CONTENTS

CHAPTER NO. TITLE PAGE NO.

1.1 THEORETICAL REVIEW 5

1.2 REVIEW OF LITERATURE 8

1.2 SCOPE OF THE STUDY 8

1.3 OBJECTIVES OF THE STUDY 9

1.4 RESEARCH METHODOLOGY 10

1.5 LIMITATIONS OF THE STUDY 12

III DATA ANALYSIS & INTERPRETATION 19

IV FINDINGS & RECOMMENDATIONS 78

TABLE NO. TITLE PAGE NO.

1 Finance companies in Dealership 18

TABLE NO. TITLE PAGE NO.

23 Whether ICICI bank joined in trade shows 62

TWO WHEELER FINANCE

ABOUT TWO WHEELER FINANCING

The two-wheeler financing sector has a lot of players in the form of

The organised market of two wheeler in India is estimated to be Rs

Two wheeler finance in India is easily available with little documentation.

Maximum Loan offered by Banks for Two Wheeler Loans

In case of old/second hand vehicles, banks finance up to a maximum of 85% of

Interest Charged by Bank on Two Wheeler Loans

Process Of Two Wheeler Loans Application

Documents Required for Two Wheeler Finance

To get any two wheeler financed, certain amount of documentations are

The researcher has collected the several researchers’ viewpoints,

Rengasamy Elango and Vijayakumar Gudep has presented in their study

The major development in the marketing literature is emergence of services

Marketing is defined as the performance of business activities that direct the

Marketing is the design, organization and implementation of economic and

The American Marketing Association defines channel of distribution as an

T. Jayashree has made “A Study on customer satisfaction of Hero Honda Motor

Senthil Kumar in his study, “Customer satisfaction of TVS vehicles with

Sasikala has made “A Study on Customer satisfaction of TVS group of vehicles

1) The study helps in identifying the market potential towards

various Two Wheeler Finance companies.

2) The study helps in identifying the competitors of ICICI Bank.

3) The study helps in conducting further market study in the

4) The study helps in identifying the market strength and

1.4 OBJECTIVES OF THE STUDY

The main objective of the research study is to formulate the strategies

for prospecting in two-wheeler financing.

 To identify the factors which influence the customers in choosing

 To study the effectiveness of the existing promotional strategies on

 To determine the effectiveness of the proposed strategies with

 To conclude a comprehensive promotional strategy for ICICI Bank

requirements of the objectives of the project.

The following are the methods adopted for the project.

 The Research Design is made as per the requirements of the

 For the secondary data collection, the information in the records

of the company proved to be sufficient.

survey method to the other methods. This is in line with the

objectives of the project.

 In the survey method, the researcher chose to undertake field

work. This is because there is a perception that in the geographical

area in which he was to conduct the survey, better and quicker

data was possible to be collected only through direct field work.

 In the field work, instead of choosing any interviews or recorded

observations, the researcher chose to incorporate all the questions

The sample size is taken as 100 respondents.

The questionnaire was designed and surveyed with 25 respondents.

Then the final questionnaire was restructured with necessary changes.