AFFECT OF BRANDING ON CONSUMER PURCHASE DECISION IN FMCG GOODS AND DURABLE GOODS

INTRODUCTION What is a BRAND? Brand recognition and other reactions are created by the use of the product or service and through the influence of advertising, design, and media commentary. A brand is a symbolic embodiment of all the information connected to the product and serves to create associations and expectations around it. A brand often includes a logo, fonts, color schemes, symbols, and sound, which may be developed to represent implicit values, ideas, and even personality. Concepts Marketers engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand image may be developed by attributing a "personality" to or associating an "image" with a product or service, whereby the personality or image is "branded" into the consciousness of consumers. A brand is therefore one of the most valuable elements in an advertising theme. The art of creating and maintaining a brand is called brand management. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, Disney has been successful at branding with their particular script font (originally created for Walt Disney's "signature" logo) which it used in the logo for go.com. "DNA" refers to the unique attributes, essence, purpose, or profile of a brand and, therefore, a company. The term is borrowed from the biological DNA, the molecular "blueprint" or genetic profile of an organism which determines its unique characteristics.

Brand equity measures the total value of the brand to the brand owner, and reflects the extent of brand franchise. The term brand name is often used interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of a brand. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration. Brand energy is a concept that links together the ideas that the brand is experiential; that it is not just about the experiences of customers/potential customers but all stakeholders; and that businesses are essentially more about creating value through creating meaningful experiences than generating profit. Economic value comes from businesses transactions between people whether they be customers, employees, suppliers or other stakeholders. For such value to be created people first have to have positive associations with the business and/or its products and services and be energised to behave positively towards them hence brand energy. It has been defined as "The energy that flows throughout the system that links businesses and all their stakeholders and which is manifested in the way these stakeholders think, feel and behave towards the business and its products or services." Attitude branding is the choice to represent a feeling, which is not necessarily connected with the product or consumption of the product at all. Marketing labeled as attitude branding includes that of Nike, Starbucks, The Body Shop, Safeway, and Apple Inc. "A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters." - Howard Schultz (CEO, Starbucks Corp.) The act of associating a product or service with a brand has become part of pop culture. Most products have some kind of brand identity, from common table salt to designer clothes. In noncommercial contexts, the marketing of entities which supply ideas or promises rather than product and services (e.g. political parties or religious organizations) may also be known as "branding".

OBJECTIVE OF PROJECT WORK

Main Objective:The main objective of research is to analysis how the brand effects the customer purchasing decision in FMCG goods and durable goods

Sub Objective:The sub objective of research is to understand the choice of the customer is branded or nonbranded goods.

JUSTIFICATION FOR CHOOSING A PARTICULAR RESEARCH PROPOSAL

Branding can be viewed as a tool to position a product or a service with a consistent image of quality and value for money to ensure the development of a recurring preference by the customer. It is common knowledge that the consumers choice is influenced by many surrogates of which the simplest one is a brand name. Although there may be equally satisfying products, the consumer when satisfied with some brand does not want to spend additional effort to evaluate the other alternative choices. Once he or she has liked a particular brand, he or she tends to stay with it, unless there is a steep rise in the price or a discernible better quality product comes to his/her knowledge, which prompts the consumer to switch the brand.

Companies spend a lot of money and time on the branding and thus it needs a careful evaluation on the effect of branding on consumer buying behavior.

QUESTIONNAIRE
1. Are you a brand loyal customer? Yes No

2. Which attributes did attract you to purchase branded products? Rank these attributes in order of their importance to you.
Brand Name Price Easy Availability Transparent Cleanliness Others

3. What was the reason for the delay between the purchase decision and the actual purchase?
Financial constraints Waiting for more innovative product Waiting for market response

4. What influenced you to buy the above stated brand(s) ?

Advertising Word of mouth Attractive packaging Dealer Shop Display Family/Friend/Relatives Any Other

5. Influence of Brand name on purchasing decision

Agree Strongly Agree

Disagree Strongly disagree

6. Influence of Quality on Purchase Decision Agree Strongly Agree Disagree Strongly disagree

7. Influence of Price on Purchase Decision Agree Strongly Agree Disagree Strongly disagree

8. Influence of Product features on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

9. Influence of Family members on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

10. Influence of Peer group on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

11. Influence of Advertisement on Purchase Decision Agree Strongly Agree Disagree Strongly disagree

12. Will you like to switch your brand preference if you get some promotional scheme with another brand? Yes No

13. Do you think branded products are better than unbranded products? Yes No

NAME OF THE RESPONDENT: ADDRESS: EDUCATIONAL QUALITICATION: OCCUPATION: AGE: MONTHLY INCOME:

Advertising Effectiveness The objectives of all business are to makes profits and a merchandising concern can do that by increasing its sales at remunerative prices. This is possible, if the product is widely polished to be audience the final consumers, channel members and industrial users and through convincing arguments it is persuaded to buy it. Publicity makes a thing or an idea known to people. It is a general term indicating efforts at mass appeal. As personal stimulation of demand for a product service or business unit by planting commercially significant news about it in a published medium or obtaining favourable presentation of it upon video television or stage that is not paid for by the sponsor. On the other hand, advertising denotes a specific attempt to popularize a specific product or service at a certain cost. It is a method of publicity. It always intentional openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a common form of non- personal communication about an organisation and or its products idea service etc. that is transmitted to a target audiences through a mass medium. In common parlance the term publicity and advertising are used synonymously. What is Advertising : The word advertising is derived from the Latin word viz, "advertero" "ad" meaning towards and "verto" meeting towards and "verto" meaning. "I turn" literally specific thing". Simply stated advertising is the art "says green." Advertising is a general term for and all forms of publicity, from the cry of the street boy selling newspapers to the most celebrate attention attracts device. The object always is to bring to public notice some articles or service, to create a demand to stimulate buying and in general to bring logethel the man with something to sell and the man who has means or desires to buy". Advertising has been defined by different experts. Some of the quoted definition are :

American marketing association has defined advertising as "any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. The medium used are print broad cast and direct. Stanton deserves that "Advertising consists of all the activities involved in presenting to a group a non- personal, oral or visual openly, sponsored message regarding a product, service, or idea. This message called an advertisement is disseminated through one or more media and is paid for by the identified sponsor. Advertising is any paid form of non goods or services by an identified sponsor. personal paid of presentation of ideas

Advertising is a "non- personal paid message of commercial significance about a product, service or company made to a market by an identified sponsor. In developing an advertising programme, one must always start by identifying the market needs and buyer motives and must make five major decisions commonly referred as 5M (mission, money message, media and measurement) of advertising. Basic Features of Advertising On the basis of various definitions it has certain basic features such as : 1. 2. 3. 4. 5. 6. It is a mass non-personal communication. It is a matter of record. It persuades buyers to purchase the goods advertised. It is a mass paid communication. The communication media is diverse such as print (newspapers and magazines) It is also called printed salesmanship because information is spread by means of the written and printed work and pictures so that people may be induced to act upon it.

Functions of Advertising For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such as detergent, non prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc. Advertising can also help to convince potential buyers that a firms product or service is superior to competitors product in make in quality, in price etc. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives. Advertising is particularly effective in certain other spheres too such as : i) ii) iii) iv) When consumer awareness of products or service is at a minimum. When sales are increasing for all terms in an industry. When a product is new and incorporates technological advance not strong and. When primary buying motive exists.

It performance the following functions : i) ii) iii) iv) v) Promotion of sales Introduction of new product awareness. Mass production facilitation Carry out research Education of people.

TYPES OF ADVERTISING Broadly speaking, advertising may be classified into two categories viz., product and institutional advertising. a) Product Advertising

The main purpose of such advertising is to inform and stimulate the market about the advertisers products of services and to sell these. Thus type of advertising usually promote specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products. Product advertising is sub-divided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale. Product advertising is sub-divided into direct & indirect action advertising & product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product. b) Institutional Advertising :

It is designed to create a proper attitude towards the sellers to build company image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favourable to the advertisers company. Its assignment is to make friends for the institution or organization. It is sub-divided into three categories : patronage, public, relations and public service institutional advertising. i) In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the

patronage motivation of buyers. If successful, he convince buyers that his operation entitles him to the money spent by them. ii) Public relations institutional advertising is used to create a favourable image of the firm among employees, stock-holders or the general public. Public service institutional advertising wages public support. Other Types : The other types are as follows : i) ii) iii) iv) Consumer advertising Comparative advertising Reminder advertising Reinforcement advertising

iii) c)

ADVERTISING OBJECTIVES The long term objectives of advertising are broad and general, and concern the contribution advertising should make to the achievement of overall company objectives. Most companies regard advertisingly main objective as hat of proving support to personal selling and other forms of promotion. But advertising is a highly versatile communications tools and may therefore by used for achieving various short and long term objectives. Among these objectives are the following : 1. 2. To do the entire selling job (as in mail order marketing). To introduce a new product (by building brand awareness among potential buyers). To force middlemen to handle the product (pull strategy). To build brand preference 9by making it more difficult for middleman to sell substitutes).

3. 4.

5. 6.

To remind users to buy the product (retentive strategy). To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product). To provide rationalization (i.e. Socially acceptable excuses). To combat or neutralize competitors advertising. To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion). To acquaint buyers and prospects with the new uses of the product (to extend the PLC).

7. 8. 9.

10.

BENEFITS The functions of advertisement, and that purpose its ethics, may be discussion below : 1. It leads to cheaper prices. "No advertiser could live in the highly competitive arena of modern business if his methods of selling were more costly than those of his rivals." It acquaints the public with the features of the goods and advantages which buyers will enjoy. It increases demand for commodities and this results in increased production. Advertising : a) b) c) d) Creates and stimulates demand opens and expands the markets; Creates goodwill which loads to an increase in sales volume; Reduces marketing costs, particularly product selling costs. Satisfied consumer demands by placing in the market what he needs.

2.

3.

4.

It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs. It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser. By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of he unemployment problem. It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. "Modern advertising has made the luxuries of yesterday the necessities of today ..................... It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before. It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like not cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The manufactures therefore tries to improve this goodwill and reputation by knowing the buyer behaviour. To sum up it may be said that advertising aims at committing the producers, educating the consumer, supplementing the salesman converting the producer and the dealer to eliminate the competitor, but above all it is a link between the produce and the consumer.

5.

6.

7.

8.

WHY & WHEN TO ADVERTISE Advertising as a tool to marketing not only reaches those who buy , but also those whose opinions or authority is counted for example a manufacturer of marble tiles and building boards advertises not only to people who intend to build houses but also to architect and engineers. While the manufacturers of pharmaceuticals

products advertise to doctors as well as to the general public. At time it is necessary for a manufacturer or a concern to advertise things which it does not sell but which when sold stimulates the sales of its own product. There are concerns like electric heaters, iron etc. because the use of these increases the demand for their products. Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no longer carry on with the old methods, and that they urgently needed a cash register. In our country certain publishers have found it less costly to sell their books by sending salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house. Naturals when there are good profits competitors will be attracted and they should be kicked out as and when sufficient capital is available by advertising on a large scale. Immediate result may not justify the increased expenditure but it will no doubt secure future sales. DESIGNING ADVERTISING CAMPAIGN : An advertising is an organized series of advertising messages. It has been defined as "a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach a specified goals." In other words, it is an orderly planned effort consisting of related but self contained and independent advertisements. The campaign may appear in one more media . it has single theme or keynote idea and a single objective or goal. Thus, "a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarity provide physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal. The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force.

Campaign vary in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, seasonal falls curves of the product involved, the size of the advertising funds, campaign objectives and the nature of the advertisers marketing programme. OBJECTIVES OF CAMPAIGN The advertising campaign, especially those connected with the consumers aims at achieving these objectives : i) ii) iii) iv) v) vi) vii) To announce a new product or improve product. To hold consumers patronage against intensified campaign use. To inform consumers about a new product use. To teach consumers how to use product. To promote a contest or a premium offer. To establish a new trade regional, and To help solve a coca regional problem.

The institutional advertising campaign on the other hand, have these objectives. i) ii) iii) iv) v) To create a corporate personality or image. To build a company prestige. To keep the company name before the public. To emphasize company services and facilities. To enable company salesman to see top executive consistently when making sales calls, and

vi)

To increase friendliness and goodwill towards the company.

Developing the campaign programmes. The advertising campaigns are prepared by the advertising agencies, which work an behalf of their clients who manufacture product or service enterprises, which have services to sell. The word campaign is used because advertising agencies approach their task with a sum Blanca of military fanfare in which one frequently hears words like target audience logistics, zero in and tactics and strategy etc. The account executive co-ordinates the work in a campaign. The creation of an advertising campaign starts with an exploration of consumers habits and psychology in relation to the product. This requires the services of statistical trained in survey techniques and of others trained in social psychology. Statisticians select samples for survey which are done by trained interviewers who visits individuals, included in the sample and ask question to find out about their taste and habits. This enquiry often leads to a change in a familiar product. For instance bathing soap may come in several new colours or cigarette in a new packet or talcum powder in another size. Such interviews are often quite essential to find out the appeal of advertising message for a product that would be most effective with consumers. David Ogilvy describes a consumers survey to find out the most meaningful benefit in which women are interested when they buy a face cream. The largest preference as given to "Cleans deep into pores" followed in order of importance by prevent dryness, "is a complete beauty treatment, recommended by skin doctors" makes skin look younger' contains estrogenic hormones, pasteurized for purity, prevent skin form aging, smooth our wrinkles ogilvy concludes, form this voting come one of Helena Rubinstein's most successful face creams. We christened it deep cleanser, thus, building the winning form into name of the product. After getting the data the account executive puts together the essential elements of his clients brief, interprets the research findings and draws up what he calls the "advertising strategy".

STAGE IN ADVERTISING CAMPAIGN Several steps are required to developed an advertising campaign the number of stages and exact order in which they are carried out may vary according to an organisations resources, the nature of its product and the types of audiences to be reached. The major stages/step are : 1. 2. 3. 4. 5. 6. 7. 8. Identifying and analyzing the advertising. Defining advertising objects. Creating the advertising platform. Determining the advertising appropriation. Selection media plan. Creating the advertising message. Evaluating the effectiveness of advertising. Organizing of advertising campaign.

1.

Identifying & Analyzing the Advertising target :

Under this step it is to decided as to whom is the firm trying to reach with the message. The advertising target is the group of people towards which advertisements are aimed at four this purpose complete information about the market target i.e. the location and geographical location of the people, the distribution of age, income, sex, educational level, and consumers attitudes regarding purchase and use both of the advertising product and competing products is needed with better knowledge of market target, effective advertising campaign can be developed on the other hand, if the advertising target is not properly identified and analyzed the campaign is does likely to be effective.

2.

Determining the advertising objectives :

The objectives of advertisement must be specifically and clearly defined in measurable terms such as "to communicate specific qualities about a particulars product to gain a certain degree of penetration in a definite audience of a given size during a given period of time", increase sales by a certain percentage or increase the firms market shares." The goals of advertising may be to : i) Create a favourable company image by acquainting the public with the services offered available to the employees and its achievements. Create consumers or distributor awareness by encouraging requests providing information about the types of products sold; providing information about the benefits to be gained from use of the company's products or services; and indicating how product (or services) can be used; Encourage immediate sales by encouraging potential purchasers through special sales contests, getting recommendation of professional people about company's products etc. It secures action by the reader through associating ideas, repetition of the same name in different contexts, immediate action appeal.

ii)

iii)

iv)

3.

Creating the Advertising platform :

An advertising platform consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign. A single advertisement in an advertising campaign may contain one or more issues in the platform. A motorcycle producers advertising platform should contain issues which are of importance to consumers filling and such issues also be those which the competitive product do not posses. 4. Determining the Advertising Appropriation:

The advertising appropriation is the total amount of money which marketer allocates. For advertising for a specific time period. Determining the campaign budget involves estimating now much it will cost to achieve the campaigns objectives. If the campaign objectives are profit relating and stated quantitatively, then the amount of the campaign budget is determined by estimating the proposed campaigns effectiveness in attaining them. If campaigns object is to build a particular type of company image, then there is little basis for predicting either the campaigns effectiveness or determining the budget required. 5. Selecting the Media :

Media selection is an important since it costs time space and money various factors influence this selection, the most fundamental being the nature of the target market segment, the type of the product and the cost involved. The distinctive characteristics of various media are also important. Therefore management should focus its attention on media compatibility with advertising objectives. Media Press Advertising or Print Newspapers Form

1. i)

ii)

iii)

2.

3.

City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies, financial and annuals, English, vernacular or regional languages. Magazines General or special, illustrated or otherwise, English, Hindi, Regional language. Trade & Technical Journals, Industrial Circulated all over the country year books, commercial, directories, and among the industrialist telephone, Directories, references and business magnates. books & annuals. Direct Mail Circulars, catalogues, leaflets, brochures, booklets, folders, colanders, blotters, diaries & other printed material. Outdoor or Traffic Poster and bills on walls,

4. 5.

Broadcast or radio and T.V. Publicity

6.

House to house

7.

Dealer aids

8.

Internet

railways stations platforms outside public buildings trains, buses. Spot, Sectional or national trade cost Movie Slides and films non theatrical and documentary films metal plates and signs attaches to trees. Sampling , couponing, free gifts, novelties, demonstrations. Counter and widows display demonstration given by retailer or the advertises goods. Today, Internet is a big spot for advertising.

So these are the media of the advertising campaign of the selecting of the media. 6. Creating the Advertising Messages :

This is an important stage of advertising campaign. The contents of the message has to be very carefully drafted in the advertisement. Characteristics of person in the advertising target influence the message content and form. An advertisers must use words, symbols and illustration that are meaningful, familiar and attractive to those persons. The type of media also influence the content and form of the message. 7. Evaluating the Effectiveness of Advertising : The effectiveness of advertising is measured for a variety of reasons : a) To determine whether a campaign accomplished its advertising objects.

b)

To evaluate the relative effectiveness of several advertisements to ascertain which copy, illustrations or layout is best. To determine the strengths and weaknesses of various media and media plans.

c)

In other words, measuring advertising effectiveness is needed to determine whether proposed advertisement should be used and if they will be now they might be improved; and whether going campaign should be stopped, continued or changed. In accomplishing these purposes, pretests and post test are conducted. The former tests before exposing target consumers to advertisements and the letter after consumers have been exposed to advertisements and the letter after consumers have been exposed to advertisements. For an effective advertising programme, the advertising manager requires a basic understanding of the medium that is going to carry it. For effectively using advertising the management must test advertising to know which of the advertisement to know which of the advertisement have proved profitable and why as compared to others.

OBJECTIVES OF THE STUDY

Following are the objectives of the study: 1. 2. 3. To know the most effective media of advertisement To find out the reasons for liking the advertisement of cold drinks. To find out the most popular slogan of advertisement regarding cold drinks.

Research Methodology

Research is voyage from known to unknown Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances. Methodology 1. Research Design: The research design is the blueprint for the fulfillment of objectives and answering questions. It is a master plan specifying the method and procedures for collecting and analyzing needed information. o Descriptive Research is used in this study as the main aim is to describe characteristics of the phenomenon or a situation.

2. Data Collection Methods: The source of data includes primary and secondary data sources. Primary Sources: Primary data has been collected directly from sample respondents through questionnaire and with the help of interview. Secondary Sources: Secondary data has been collected from standard textbooks, Newspapers, Magazines & Internet. 3. Research Instrument: Research instrument used for the primary data collection is Questionnaire. 4. Sample Design: Sample design is definite plan determine before any data is actually obtaining for a sample from a given population. The

researcher must decide the way of selecting a sample. Samples can be either probability samples or non-probability samples. Sampling Technique: Convenience Sample Size: 50 Respondents. Area of Study: Yamuna Nagar. MARKET PROFILE (Coca Cola) Brands of Coca- Cola i) ii) iii) iv) v) vi) vii) Coca Cola Thums-up Limca Fanta Maaza Maaza Tetra Sprite

Flavours of the brand : i) ii) iii) iv) v) Cola Lemon Soda Orange Mango

vi)

Clear Lemon

Size of the Coca Cola cold drinks available in market i) ii) iii) iv) v) vi) 200 ml Bottles (RGB Glasses) 300 ml Bottles (RGB Glasses) 500 ml Bottles (RGB Glasses) 1 Litre (PVC Bottles) 1.5 Litre (PVC Bottles) 2 Litre (PVC Bottles)

Sales of Coca Cola Cold drinks Coca Cola Cold drinks Coca Cola Fanta Thums-up Limca Maaza Tetra Sprite Maaza (Primary data) There is more consumption of Coca Cola and has 70% market share in the Yamunanagar city and Coca Cola is having maximum consumption and after Weekly (in carets) 520 250 350 380 80 70 120 Monthly (in carets) 1840 1030 1350 1210 380 280 690 Yearly (in carets) 22400 12900 18500 16300 6200 5000 10000

that Thumps-up and after it Limca cold drink in the market and all the products has good sale but less than these. Brands of Pepsi i) ii) iii) iv) v) Pepsi Cola Mirinda Lemon Mirinda Orange Pepsi Soda Pepsi Apple

Flavours of the brand : i) ii) iii) iv) v) Cola Lemon Orange Soda Apple

Size of the Pepsi cold drinks available in market vi) vii) viii) ix) x) xi) 200 ml Bottles (RGB Glasses) 300 ml Bottles (RGB Glasses) 500 ml Bottles (500 pt. Bottles) 1 Litre (PVC Bottles) 1.5 Litre (PVC Bottles) 2 Litre (PVC Bottles)

Sales of Pepsi Cold drinks Pepsi Cold drinks Pepsi Mirinda Lemon Mirinda Orange Pepsi Soda Pepsi Apple Weekly (in carets) 430 390 245 126 120 Monthly (in carets) 1750 1180 1000 470 400 Yearly (in carets) 21600 15400 13600 6000 5000

(Primary Data) The consumption of Pepsi cola, after this sale of Mirinda Lemon is there and after it Mirinda Orange is there and the market share is less of Pepsi in comparison of Coca Cola. TABLE 4.1 RESPONDENT'S CLASSIFICATION ACCORDING TO AGE

Age (in years) No. of respondents Percentage 11-20 22 44 21-40 25 50 41-60 3 6 Total 50 100 Table 4.1 shows that 44% of the respondents are in the age group of 11-20, 50% are in the age group of 21-40 and 6% are in the age group of 4160.

TABLE 4.2 RESPONDENT'S CLASSIFICATION ACCORDING TO SEX Sex Male Female Total No. of respondents 30 20 50 Percentage 60 40 100

Table 4.2 shows that 60% of the respondents are males and 40% of them are females TABLE 4.3 RESPONDENT'S CLASSIFICATION ACCORDING TO EDUCATIONAL QUALIFICATION Qualification No. of respondents Percentage Illiterate Below Matric Matric 5 10 Graduate 29 58 Post graduate 16 32 Total 50 100 Table 4.3 reveals that out of 50 respondents 5 are matriculate and 29 are Graduate and rest of them 16 are post graduate. TABLE 4.4 DRINKING OF COLD DRINK Do you take cold drinks Yes No Total No. of respondents 50 50 Percentage 100 100

Table 4.4 reveals that all the respondents are drinking cold drinks. TABLE 4.5 FREQUENCY OF TAKING COLD DRINKS HOW FREQUENTLY YOU DRINK Once a day Twice a day More than twice Not regular drunker Total No. of respondents 15 2 1 32 50 Percentage 30 4 2 64 100

Table 4.5 reveals that 30% of the respondents drink it once a day, 4% twice a day, 2% more than twice and 32% drink it no regularly. TABLE 4.6 NAME OF THE COLD DRINKS AVAILABLE IN MARKET Name of cold drinks Coca cola Pepsi Fanta Limca Mirinda Thums-up Canada dry Maaza Dew All of above Total No. of respondents 50 50 Percentage 100 100

Table 4.6 reveals that all of the respondents are of the view that all the above mentioned cold drinks are available in the market.

TABLE 4.7 PREFERENCE OF COLD DRINK Which cold drink you like most Coca cola Pepsi Fanta Limca Mirinda Thums-up Canada dry Maaza Dew Total No. of respondents 12 12 1 7 1 10 4 3 50 Percentage 24 24 2 14 2 20 8 6 100

Table 4.7 indicate that out of 50 respondents 12 like Coca cola, 12 like Pepsi, 7 like Limca, 1 like Fanta, 1 like Mirinda, 10 like Thums-up, 4 like Canada dry and 3 like Maaza. TABLE 4.8 FLAVOURS OF COLD DRINKS Flavours Cola Lemon Orange Mango Others Total No. of respondents 30 7 7 2 4 50 Percentage 60 14 14 4 8 100

Table 4.8 shows that out of 60% of the respondents like the cola flavour of cold drink, 14% like the Lemon flavour and same percentage of respondents like the orange flavour of cold drink.

TABLE 4.9 ADVERTISEMENT OF COLD DRINK Do you think advertisement of cold drink is required Yes No Total No. of respondents Percentage

48 2 50

96 4 100

Table 4.9 indicate that 96% of the respondents are of the view that they have been the advertisement of the cold drink they like most while 4% shows that they dont have seen the advertisement they like most . TABLE 4.10 MEDIA OF ADVERTISEMENT THROUGH WHICH No. of respondents Percentage MEDIA YOU HAVE SEEN IT? TV 46 92 Newspaper 2 4 Magazine 1 2 Other 1 2 Total 50 100 Table 4.10 reveals that 92% of the respondents are of opinion that they have seen the advertisement on TV while 4% are of the opinion that they have seen the advertisement through newspaper.

TABLE 4.11 NO. OF ADVERTISEMENT How many No. of respondents Percentage advertisements you seen are of the most likely cold drink by you 1 11 22 2 14 28 3 11 22 4 14 28 Total 50 100 Table 4.11 shows that out of the 50 respondents 11 are of view that there is 1 type of advertisement and other says that there are more than one type. TABLE 4.12 SLOGAN OF COLD DRINK Slogan of cold drink which you like Taste the thunder Yara Da tashan Yeh dil mange more Jo chahe ho jaye, coca cola enjoy No. of respondents 12 14 16 8 Percentage 24 28 32 16

Total 50 100 Table 4.12 shows that out of 50 respondents 12 like the slogan 'taste the thunder' ,14 like 'Yara da tashan', 16 like 'yeh dil mange more' and 8 like the slogan 'Jo chahe ho jaye coca cola enjoy'. TABLE 4.13 REASON FOR LIKING THE ADVERTISEMENT Why you like No. of respondents Percentage advertisement Its theme and making is 30 60 appealable It has film stars 7 14 Because of good music 7 14 Other reasons 6 12 Total 50 100 Table 4.13 shows that majority of the respondents like the advertisement due to its theme while majority of the respondents like the advertisement due to its film stars and good music. TABLE 4.14 EFFECT OF ADVERTISEMENT ON CONSUMPTION OF COLD DRINK Do you think ads. Effect No. of respondents Percentage the consumption of cold drink Yes 23 46 No 17 354 Cann't say 10 20 Total 50 100 Table 4.14 shows that 46% of the respondents are of the view that advertisement forced them to consume product more 34% of them has view that advertisement dont force them to consume the product while 20% of them cannot say anything about it.

TABLE 4.15 BEST MEDIA OF ADVERTISEMENT Which Media Presently Is More Effectively TV Newspaper Magazine Others Total No. of respondents 50 50 Percentage 100 100

Table 4.15 reveals that 100% of the respondents are of the view that presently the TV is most effective media of advertisement. TABLE 4.16 NECESSITY OF ADVERTISEMENT DO YOU THINK THE No. of respondents Percentage ADVERTISEMENT IS NECESSARY FOR COLD DRINKS? Necessary 14 28 Very necessary 34 68 Cant say 2 4 Total 50 100 Table 4.16 shows that highest number of respondents are of the view that advertisement is very necessary for cold drinks while few respondents are of the view that advertisement is necessary. TABLE 4.17 EFFECTIVENESS OF EXPENDITURE INCURRED ON ADVERTISEMENT

Does expenditure should be incurred on advertisement Yes No Cant say Total

No. of respondents

Percentage

43 2 5 50

86 4 10 100

Table 4.17 shows that 86% of the respondents are of the view that the expenditure incurred on advertisement is effective in adding the profit while 4% denied the same and 10% did not reply.

TABLE 4.18 REASONS FOR DIFFERENCE OF ADVERTISEMENT EFFECTIVENESS WHICH REASON YOU FIND FOR THE DIFFERENCE OF ADVERTISEMENT EFFECTIVENESS Education Liking Standard of Living Level of Development Total No. of respondents Percentage

20 10 10 10 50

40 20 20 20 100

Table 4.18 shows that 40% of the respondents say education is one of the main reason of Advertisement effectiveness while equal % of the respondents are in the favour of likings, standars of living and level of development

TABLE 4.19 ADD EFFECTIVENESS AND IMPROVEMENT IN ADVERTISEMENT WILL THE STUDY OF No. of respondents Percentage EFFECTIVENESS WOULD CONTRIBUTE TO IMPROVEMENT OF PRESENT ADVERTISEMENT Yes 45 90 No 1 2 Cannot say 4 10 Total 50 100 Table 4.19 shows that the majority of the respondents are of the view that the study of effectiveness contributes the improvement in present advertisement. TABLE 4.20 NECESSITY OF ADVERTISEMENT EFFECTIVENESS IS ADVERTISEMENT No. of respondents Percentage EFFECTIVENESS IS NECESSARY FOR COMPANY? Yes 48 96 No 1 2 Cant say 1 2 Total 50 100 Table 4.20 reveals that majority of the respondents say that the advertisement effectiveness is necessary while same did not replied. TABLE 4.21 USERS OF ADVERTISEMENT EFFECTIVENESS THE USE STUDY OF No. of respondents Percentage

EFFECTIVENESS IS FOR WHOM? For company 34 68 For employees 1 2 For customers 15 30 None of these Total 50 100 Table 4.21 indicates that 68% of the respondents are of the view that the study of effectiveness is meant for company while 30% say that it is meant for customers.

FINDINGS
After going through all the project and the collected data, I found that: 84% of the respondents said that TV is the most effective media of advertisement. 60% of the respondents said that they like the advertisement of cold drinks because of its theme whereas, 14% said that they like celebrities in advertisement. Some 32% of the respondents said that yeh dil maange more is the most popular slogan whereas 28% of the respondents said that yara da tashan is the popular slogan. Majority of respondents are of the view that advertisement is very necessary for cold drink. Majority of respondents sees the advertisement of the cold drink they like most. Majority of the respondents like cola flavor of cold drink

Equal number of respondents like the brand of Coca Cola and Pepsi

SUGGESTIONS
We reached some suggestions : Advertisement should not be too expensive, because the advertisement leads and increase the prize of the product. Media should be selected according to the choice of customers. In rural areas media should be according to the choice of the people. To give more attention in making the advertisement to make it effective for the sale of cold drink. Price should be decreased so as to attract the consumers to use product more. To give attention on the weak media of advertisement so that the consumers comes to know about the product. It should be attractive one so that people are attracted toward the advertisement.

LIMITATIONS
 The project relied mainly on the primary data.  Consumer give very unclear picture.  We have a limited time.  The study is based on limited sample.  It begin my first attempt to undertake such a study, thus the inexperience is also a obstacle to accomplish the project in a proper way.  It was also difficult to get proper information from the people because they were indulging in some other activities.

CONCLUSION
In last you conclude that majority of the respondents said that TV is the most effective media for advertisement of cold drinks and the celebrities and the slogans in the advertisement effect the consumers. ADVERTISEMENT EFFECTIVENESS OF COLD DRINKS BACK GROUND INFORMATION I) II) III) IV) Name : Age : Qualification : 1. Literate 2. Illiterate if literate ? 1. Below Matric 3. Graduate Profession Address : : __________________________________ __________________________________

V) VI)

VII) Size of family 1). 2).

2. Matric 4. Post Graduate : __________________________________ __________________________________ __________________________________ __________________________________

3).

4).

5).

Do you take cold drink ? a. Yes b. No How frequently you take cold drink ? a. Once a day b. Twice a day c. More than twice d. Not regular Which are the different cold drinks available in the market ? a. Coca Cola b. Pepsi c. Limca d. Fanta e. Thums-up f. Mirinda g. Limca h. Maaza i. Canada Dry j. All of these Which cold drink you like most ? a. Coca Cola b. Pepsi c. Limca d. Fanta e. Thums-up f. Mirinda g. Limca h. Maaza i. Canada Dry j. All of these Which flavour of cold drink you like most ? a. Cola b. Lemon

c. Mango d. Orange e. Other 6). Have you seen the advertisement of cold drink you like most ? a. Yes b. No 7). Through which media you have seen it? a. T.V. b. News Paper c. Magazine d. Others 8). How many types of advertisement of you preferred brand of cold drink are there? a. 1 b. 2 c. 3 d. 4 9). Which slogan of cold drink you like most ? a. Taste the Thunder b. Yara Da Tashan c. Yeh Dil Mange More d. Jo chahe ho Jai COCA-COLA enjoy 10). Why do you like the advertisement ? a. Because it has film stars ? b. Because of Good music c. Its theme and making is appealable. d. Any other reason. 11). Do you think that advertisement has forced you to consume product more ? a. Yes b. No 12). Which media is presenting the advertisement is necessary for sale of cold drink ? a. T.V. b. News Paper c. Magazine d. Others 13). Do you think the advertisement is necessary for sale of cold drink ? a. Necessary b. Very Necessary c. Not Necessary d. Cant Say 14). The expenditure incurred on advertisement of cold drink is such effective that it adds to profit ? a. Yes b. No c. Cant Say 15) Which reason you find for the difference of advertisement effectiveness ? a. Education b. Likings c. Standard of Living d. Level of Development 16) Is the study of effectiveness would contribute to improvement in present advertisement ? a. Yes b. No c. Cant Say

17)

18)

Is advertisement effectiveness is necessary for company ? a. Yes b. No c. Cant Say What do you think the use of study of effectiveness is for who? a. For Company b. For Employees c. For Customers d. None of these

CONSUMER BUYING BEHAVIOUR - INTRODUCTION The job of marketer is to meet and satisfy target customers needs and wants but knowing customer" is not a simple task. Understanding the buying behavior of the target market for its company products is the essential task for the marketing dept. The job of the marketers is to think customer and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, profits to customer and benefits to the stakeholders. Marketers must study the customer taste, preferences, wants, shopping and buying behavior because such study provides the clues for developing the new products, price, product changes, messages and other marketing mix elements. In understand the concept of buying we have the some of the key questions. They are:  Why does the market buying?  Who does the market buying?  What does the market buying?  When does the market buying?  Where does the market buying?  How does the market buying? Objective Organization Objects Occasions Outlets Operations

Along with that there are two more questions that are also related with above. They are:  How do the buyers characteristics influence the buying behavior?  How does the buyer make purchasing decisions? These are some of questions that solutions help to predict the buying behavior. WAYS OF BUYING BEHAVIOR

According to the concept of marketing the buying behavior can be divided in two ways :1. Consumer Behavior: - It includes that user who buys the product for the direct consumption, not to use for further sale purpose. Like as home users. 2. Business Behavior: - It includes those users who buy the product for the further sale purpose. Like as shopkeepers, dealers, and retailers. BUYING ROLES IN BUYING BEHAVIOR In the buying behavior there are different roles played in each of consumer and business. Those are involved in the buying decisions. CONSUMER BUYING ROLES In the consumer buying there are different buying roles; i.e.  Initiator: -- A Person who first suggest the idea of buying.  Influencer: - A Person who influence the buying decision.  Decider: - A Person who takes decisions regarding buying  Buyer: - A Person who actually buys the products.  User: - A Person who is the user of the product. BUSINESS BUYING ROLES In the business buying there are different buying roles; i.e.  Approver: -- A Person who approves the idea of buying.  influencer: -- A Person who influence the buying decision.  Decider: -- A Person who takes decisions regarding buying  Buyer: -- A Person who actually buys the products.

 User: -- A Person who is the user of the product. TYPES OF BUYING BEHAVIOR There is a great difference between the purchasing of a computer and a car. Buying decisions making varies with the type of buying decision. The types of buying behavior divided are separately divided as per of consumer and business buying. TYPES OF CONSUMER BUYING BEHAVIOR This is to be extensively divided in four types: 1. Complex Buying Behavior: -- when the consumer are highly involved in the purchase and aware of significant differences among brands. 2. Dissonance Reducing Buying Behavior: -- when the consumer are highly involved in the purchase but sees little differences among brands. 3. Habitual Buying Behavior: -- when the consumer are low involved in the purchase but sees absence of aware of differences among brands. 4. Variety Seeking Buying Behavior: -- when the consumer are low involved in the purchase but sees significant of differences among brands. TYPES OF BUSINESS BUYING BEHAVIOR This is to be extensively divided in four types: 1. Straight Rebuy: -- In this buyer approves the purchasing on the basis of the past buying records and satisfaction with suppliers. 2. Modified Rebuy: -- where the buyer wants to modify product specifications. Prices, delivery requirements. 3. New Task: -- when the buyer approves the purchasing of product for the first time by consisting of the good and efficient salesperson. So, that its the types of the buying behavior of consumer as well as business buyer.

FACTOR AFFECTING THE BUYING BEHAVIOR There are various factors that affect the buying behavior on both consumer as well as business buying. FACTOR AFFECTING CONSUMER BUYING BEHAVIOR
Cultural Factors Culture Personal factors Age Occupation Sub Culture Life Styles Family Personality Social Class Roles and Statues Learning Perception BUYER Motivation Social Factors References Group Psychological

FACTOR AFFECTING BUSINESS BUYING BEHAVIOR

Environmental Economic Political Policies Cost of Money Procedures Competition Structure Technological Status Empathy Organizational Objective Inter Personal Authority Individual Age Education Income BUSINESS BUYER

So, these are the factors that affect the consumer as well as business buying behavior. BUYING DECISION MAKING Consumers make the decision on the different brands available in the market. They will give the choice over the different brands. So there is a model that describes how the consumers make the choice and preferences over the different brands. The Following is the model of buying decision-making: 1. Total Set: - In this they used to maintain the list of the all-leading brand to those particular products, that are available in the market. 2. Awareness Set: - After that they used to make the list of those selected brands with that they are something knows and aware about their products. 3. Consideration Set: - After that they used to make the list from the list of known brands, about those they know something better than other brands. 4. Choice Set: - After the consideration of some brands, a list of choice brands those having the greater chances of acceptance over others. 5. Decision Set: - After the all of the process in last most preferred, most acceptable during the buying decision process. So that its a process, which defines that, how a buying decisions are made among the number of brands available In the market. So that its all about the general buying behavior of cons, and business buying according to marketing concept, because to understand and making study over buying behavior first its necessary to aware with concept of buying behavior.

BUYING BEHAVIOR - INTRODUCTION OF STUDY INTRODUCTION

Understanding the buying behavior of the target market for its company products is the essential task for the marketing dept. The job of the marketers is to think customer and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, profits to customer and benefits to the stakeholders. The computer processor company divides its buying behavior in both way i.e. Consumer and Business. The both of term have same meaning as to define in the chapter of buying behavior. The both consumer and business are divided further as SMB Small Medium Big - to identify the type of client according to their sales and SMB have their own group of clients. CONSUMER BUYING BEHAVIOR:It includes all those person who are the direct user of the computers and their processors or for their employees and family member use. They are not indulging in the sale activity of the computer and other Products. i.e. home users, companies for their employees. BUSINESS BUYING BEHAVIOR: It includes all those person who are not the direct user of the computers and their processors or for their employees and family member use. They are indulging in the sale activity of the computer and other Products. They can also be authorized from companies i.e. Intel. i.e. hp, HCL, Assemblers.

There is model of the both of behavior as suggested by companies with the dividing in the SMB, the both of the buying behavior. The models are below for both behaviors: -

CONSUMER BUYING SMB

SMALL Home PC users Doctors Chemists

MEDIUM Departmental Stores Small Industries Small Software Companies

BIG Banks, Insurance Laptop Users Big Industries Software Comp. Scientists

Shop Keepers And Self-Employed

MODEL OF CONSUMER BUYING BEHAVIOR

BUSINESS BUYING SMB SMALL Retailers Small Traders Small Assemblers MEDIUM Whole Sellers Big Assemblers Intel Agents BIG Auth. Assemblers e.g. HP, HCL, ACER Super Store Retailers

MODEL OF BUSINESS BUYING BEHAVIOR So thats all about the category of computer processors buying behavior as to each divided in SMB as to their use and sales point. Now we will be discuss with the concept of the from the point our study and discuss how these companies make it possible.

PROBLEM FORMULATION

In this report we are making a study report for the buying behavior of Processors in order to know the position of different sets Processors brands of different companies in the market. So that we divide the problem in sub parts to make the good and result oriented study report. Problem defined as: -

 What is the Position of the computer processors all companies in the Indian market?  Different players in the processor market.  Perception of dealers and consumer about these companies.  Physical distribution of these companies competing with others.  Taste and preferences of dealer and consumer towards computer.  Price effect over consumer and dealer between competitions. Marketing and sales promotion activity of these companies.  Competition in terms of price, technology and after sale service.  Find out the consumer and business target groups.

So as to study the buying behavior we divide the problem overstated parts, so that it can be easily formulate and solved. SIGNIFICANCE OF PROBLEM Every one knows the time of manual working and now we have different set of machines for the different work, it makes our work very easy and fast. In these machines computer is one and buying of a computes is not a simple task. In that buying behavior for the computer processors has Its own significance. For that we

divide the problem as stated in above sect and each problem has its own significance to answer the following questions:  Why, When, How, What, where and who is buying the Computer?  Why, When, How, What, where and who is buying processors and which one?  Why, When, How, What, where and who is buying only INTEL processors?  Why, When, How, What, where and who is buying other than INTEL processors? In the, context of the solving these questions, problem has significance in the form of the over stated questions?

ROJECT REPORT ON CONSUMER BEHAVIOUR COMPUTER INDUSTRY COMPUTER INDUSTRY AN INTRODUCTION

INTRODUCTION COMPUTER INDUSTRY

Every one knows the time of manual working and now we have different set of machines for the different work, it makes our work very easy and fast. In these machines computer is Wonderful invention of the men among the different machines and result is that today this machine is ready to beat the man mind, but before this computer was not as it looks and works today. In the age of 1940 computer was invented by Americans for the purpose made easy the chemical equation, which were used later on in Second World War as atom bomb, for which

equations were firstly made on computers. That time size was very big and requires a one room space for this machine, but time to time technology advancement and its necessity in different fields increase it utility and on the other hand decrease in its size. Today computer is portable that we can wear it on wrist as wristwatch. That is possible due to of the changes in the IC technology and result is that today computer is emerged as big industry of the world. Computer ranked as industry in the age of 1970 in USA and after that in other countries of world, because it creates the lots of business, employment, business resource, foreign exchange etc.

TYPES OF COMPUTER INDUSTRY Computer industry is broadly in two types. 1. Computer Software Industry :- Computer software means all those application programs, which we cannot touch but see and computer software industry means that providing the business opportunities and employment in the field of computer software development.

2. Computer Hardware Industry :- Computer hardware means all those parts, which we can touch and see and computer hardware industry means that providing the business opportunities and employments in the field of computer software development.

COMPUTER INDUSTRY - MAJOR PLAYER IN INDIA Computer industry has the number of player in each software and hardware industry in the world. Now we have a look over the major players of this industry in India. They are: -

SOFTWARE INDUSTRY TCS WIPRO INFOSYS HCL CISCO

HARDWARE INDUSTRY INTEL SEGATE HP HCL MICROTEK

COMPUTER INDUSTRY - THEIR SHARE :y In USA Computer industry shares the 48% of the total income where as in INDIA it shares only 12% of the income and major portion goes to software industry. In USA Computer industry provides the employment about 5.5 Iakhs and in INDIA 78 thousands approx. yearly and also the major portion goes to software industry. In USA 62% of population is dependent on the computer industry and where as in INDIA this ratio only is 8% of population. In INDIA computer industry shares the 10.9% of Export in form of software industry and 20 % of Import in form of hardware industry. In India only the 6-computer hardware companies and 13 computer software industry companies are listed in Indian stock exchanges. Today the computer industry shares the 28.9% of the total of world income. Today INDIA have 5computer behind 100 peoples and whereas in USA ration is 98 computer behind 100 people.

y y

AN INTRODUCTION - DIFFERENT PROCESSORS BRANDS INTRODUCTION

Everyone related with the IT or Infotech knows that a processor is the one a chip heart of the computer. There no. of companies thats provides the sales support services and product services worldwide. In India there are only no. of companies thats provides the computer processors for the home PC and as well as for the office use. The each of the companies having the set of different processors thats are segmented on the basis of price and technology. Because in the computer processor market the price and technology plays the interchangeable role, but the technology advancement creates a mark able and vital role as competitive weapon. The different companies that are present in India, They are follows :-

COMPUTER PROCESSOR COMPANIES IN INDIA INTEL AMD CYRIX CELERON

In India there is only four companies is exist, but present scenario tells about only the three companies except Celeron because its near about to end from the Indian processor market.

ABOUT INTEL Intel is the world first, largest processor manufacturing company. Intel was established in the age of 1960 with its first product a computer processor named with 8080 and after that in every decades Intel launched the many versions of the processor named in number terminology i.e. 8084, 8085 etc till the age, of 1980s After 1980s Intel uses name terminology of processor named PentiumI, Pentium 2 etc. With the advancement of technology in ICs technology for the personal computers. After 1995 along with the processor and chipset Intel launched the motherboards and other networking peripheral i.e. Hub, WebCamera, VGA cards and Network cards. After that Intel launches the processor for

the PC as welt as for the servers named XEON and for notebook computers named Pentium4 M. Intel keeps the range of products of different segments to meet out the competition and change. Intel R & D division is continuously engaged to come out with the latest state of the art product in the IT hardware sector. Today Intel is worlds only company that produces more than the 8 hardware devices for the computer with world best rated technology.

SOME UNIVERSAL TRUTH ABOUT INTEL:- WHERE DOES INTEL STAND y Intel is the 4th known brand In the world and 2nd in the world Infotech scenario. Intel comes under the list of top 10 companies of the world. Intel is first, largest and ranked as number one processor and chipset manufacturing company in the world. Intel has presence in 45 countries worldwide but has representatives in 22 offices around the world. Intel is only Company that has the first largest investment in IT Hardware Sector. Intel is an ISO9001 and ISO9002 company. Intel employs approximately 80,000 people in 45 nations worldwide. Intel satisfies the approx.92.5% of the IT people worldwide. Intel is only World Company that produces more than 8 devices of computers. Intel is only world company that produces the all type of processors i.e. server processors, PC processors, notebook processors etc.

y y

y y y y

y y

Intel have their alliance and premium provider in each of operating country. In India Intel enjoying the approx. 93% market share of IT hardware since 1998.

ABOUT INTEL IN INDIA In India Intel enjoying the approx. 93% market share of IT hardware since 1998. Intel products in India in age of 1980s but with their representatives in 1997. Now in India Intel have one head office and two marketing office whose address are below.

Intel Head Office in India : INTEL INDIA TECHNOLOGY PVT. LTD. 136, Airport Road, Banglore 560017 Intel Marketing Office in India :INTEL TECHNOLOGY INDIA PVT. LTD. 45, Tech Park, Mumbai INTEL TECHNOLOGY INDIA PVT. LTD. Gresco Corporate Center, Nehru Place, New Delhi

INTEL - PRODUCTS INTEL has number of products that are used worldwide computers. They are :-

Processors

y Mother boards y Chipsets y Communication devices y Storage products

Intel processors are bringing desktop and notebook computing to new levels of speed and convenience, and extending Intel Architecture to new levels of technical computing performance, offering you all the compatibility and reliability youd expect from Intel.

Highlighted Processors products of Intel are: --

INTEL STRATEGIC ALLIANCES AND PREMIUM PROVIDERS

INTEL has eight strategic alliances worldwide and premium providers are exclusive of operating country those provide the sales support services and product services worldwide. They are: -

STRATEGIC ALLIANCES BEA Alliance IBM And Intel Microsoft And Intel Broad vision Alliance Oracle Alliance SAP And Intel SAS And Intel Intel i2 Alliance

Premium Provider in India TCS IDBI N ICON SYSTEMS KARISHMA SOFT HCL HP

Provides Customized Business Softwares Financial Assistance Hardware Assistance Doctors Software Assembler Assembler

ABOUT AMD

The era of technology for technologys sake is behind us. Innovation driven by real customer needs customer-Hector Ruiz Founded in 1969 and based in Sunnyvale, California, AMD provides microprocessors, Flash memory devices, and silicon-based solutions for our customers in the communications and computer industries worldwide.

However, our focus goes beyond integrated circuits and transistors. AMD is committed to helping our customers and their customers take advantage of the phenomenal capacity of silicon to add value and help differentiate their offerings. To that end, AMD products are developed with customer needs always in mind and not for the sake of innovation alone. Stated more plainly, it means that AMD exists to provide real solutions for real customer problems that exist in the real world today. AMD refer to this philosophy as customer-centric innovation and it represents the guiding principle behind everything. AMD provide the different solutions in: y Recommended motherboards. y Cooling solutions. y y Power supplies. Storage devices.

y Chipsets. y Communication devices.

AMD PRODUCT PROCESSORS

AMD PRODUCT - MIX AMD has number of products at their different percentage as their product mix. Products Processors %age 65%

Mother Boards Chipsets Communication Devices Storage Devices

18% 10% 5% 2%

AMD LOCATIONS

AMD has manufacturing facilities in the United States, Europe, Japan and Asia, and sales offices in major cities around the globe. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of approximately $2.7 billion in 2002. A truly global company, AMD derives more than half of its revenues from international markets. Shares of the company trade on the New York Stock Exchange under the symbol AMD.

One AMD Place P.O. Box 3453 Sunnyvale, California 94088-3453 (408) 749-4000 TWX:910-339-9280 TELEX:34-6306

AMD SUPPORT SERVICES AMD provides the support services to their consumers, to get the maximum consumer satisfaction. The services are: --

After sales services.

y Warranty and credit facility. y y Services by premium provider in each country. The download area offers software, drivers, plug-ins and other utilities for your products,

y Quickly locate a variety of product support information throughout the Technical Support site.

AMD - FLASH BACK          May 1, 1969 - AMD incorporates with $100,000. September 1969 - The company moves to new headquarters at 901 Thompson Place, Sunnyvale. November 1969 - First good die emerges from Fab 1, the Am-9300, a 4-bit MSI shift register. 1970 - First proprietary product introduced, the Am-2501. January 1973 - First overseas manufacturing base in Penang, Malaysia, in volume production. 1975 - AMD enters the RAM market with the AM-9102. April 1987 - AMD and Monolithic Memories Inc. agree to merge. March 1991 - AMD introduces the AM386 microprocessor family, breaking the Intel monopoly. February 1992 - Five-year arbitration with Intel ends, with AMD awarded full rights to make and sell the entire Am-386 family of microprocessors.

          

April 1993 - First members of the Am-486 microprocessor family are introduced. January 1994 - Compaq Computer Corp. and AMD form long-term alliance und which Am486 microprocessors will power Compaq computers. March 10, 1994--Federal court jury confirms AMDs right to Intel microcode in 287 math coprocessor trial. 1997 - AMD introduces AMD-K6 processor. 1998 - AMD and Celeron announce long-term alliance to develop copper 2001AMD introduces AMD AthlonTM XP processor. 2001AMD introduces AMD Athlon MP dual processor for servers and workstations. 2002AMD introduces first Flash memory device based on Mirror BitTM architecture. 2003AMD introduces AMD OpteronTM processor for servers and workstations. 2003AMD introduces AMD Athlon 64 processor for desktop and notebook PCs. 2003AMD introduces the AMD Athlon 64 FX processor, enabling cinematic computing on the desktop

WORLDWIDE LOCATIONS OF THESE COMPANIES These companies having the presence over 45 countries but has representatives in offices around the world. They are: Asia Pacific Region Europe Middle East & Africa Region

Australia China Hong Kong India Korea Singapore Taiwan Sweden Latin America Region Chile Brazil Costa Rica Mexico

Belgium France Germany Ireland Israel Poland Russia United Kingdom North America Region United States Japan Tokyo

After the formulation of the problem for the study and the having the significance of problem we have the some of the research objectives for that we are doing the study because with out any objective nothing is to be a study report. The research objectives of this study are as below stated: -

 First and utmost findings the consumer and business buying behavior for Processors.      Perception and awareness level of all companies in the market. Determination of customer satisfaction level in regard to various brands with Intel. Factor affecting the buying behavior of processors. Physical distribution of these companies competing with others. Difference between these companies in terms of product attributes.

   

Find out the consumer and business target groups. To know the consumer and dealer profile of these companies customer and dealers. Identify the problem of consumer and dealer with these companies. Taking the suggestions and complaints of the consumer and dealer.

So that we are taking these some of the research objectives on which our study is based.

PRELIMINARY INVESTIGATION

After getting through of the research objectives now we go through step of the preliminary investigation to find out the necessary information to fill out the objectives of the study. The information expected to be collect on the basis of the preliminary investigation are:     The various brands and available companies in the market. The various feature of various brands competing with the Intel List of all dealer and auth. assembler in New Delhi. Various promotional, marketing, advertisements, sales activity and physical distribution of these companies.

Competition in terms of price and technology between different brands.

  

Future marketing plan from point of competition. List of strategic alliances and premium providers and their services. Mapping of buying behavior.

So that to fill out the objectives of study I have done the preliminary Investigation on overstated defined points and after that a list of needed information prepared in next chapter.

REVIEW OF EXISTING LITERATURE To study the buying behavior it necessary to aware with the market change in few years, because day by day the awareness of the computers is growing bind along with that the entry of new players in the market grow rapidly. That has drastically hits the traditional processors market and makes the many changes in the few years. As to in the processor market the change is not only due to of competition but along with the change of technology. To see the market changes in few years we have to go through with the existing literature of processor market. In the computer studies as to not of such of studies are done only of few studies were done regarding computers and their perspectives by foreign as well as by the foreign writers. So some of the content can be used for this study, the few studies are used they are: -

 DR. S.P Joseph, Computer and Human Relation of IC and Blood, A.M.K. University, South Africa, 1998.

 Louis. E. Frenzel, Computers Futures Man By Man, Parsons Electronics, USA, 2001.  Dr. A.K. Shiva Computer Impact over Human lives, Banglore University, India, 1998.  Mr. Arun Jain, Customer Satisfaction Level of Intel Products, Trainee at INTEL, G.G.S. University, 2002.

The some of useful and meaningful point of existing literature for this study are: - Customers of the processors are not only interested to the price but they pay more stress towards the advancement of technology for easy and speedy work.  Computer has made greater impact over human lives rather than the other technology invention and advancement.  Computer is another name of change, with that in each one or two years in computers technology changes is not a big and new thing.  Initially computers only provide the limited range of services but today we can not think any service without computers.  Till 1960 computers have the presence only in 5 countries around the globe but today approx. each and every country of world have computers.

So these are the extract of the computer literature that is useful towards the solution of buying behavior.

FOCUS OF STUDY Satisfaction is a person felling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations. So this study mainly focuses on:  The satisfaction level of customers the study based on the feedback collected from the filled questionnaire.   Whether the customer is satisfied with the supplied product and not. If customer is satisfied up to what extent and if is not satisfied why. What is the reason behind this?  Factors that affect the buying behavior as well as the customer satisfaction.  How customer taste and preferences affects the company marketing strategy.  How company is able to cater the demand and need of different target groups.

FUTURE SCOPE OF STUDY

This study report has scope of understanding the different aspects of buying and this can be used in future for further study for: -       To understand the future demand of consumer and dealer To understand the future processor market characteristics. For making of better competition strategy in changing environment. Future marketing war and promotional plans decisions. For the study of future buying behavior affecting factor prediction. To check the customer satisfaction and brand awareness. Suggestions and complaints can be considered for future products.

So, those are the points of the future scope this study, in which this study can be used.

RESEARCH METHODOLOGY INTRODUCTION The research is a systematic, collection, recording and analyzing of data about the problem relating to the marketing of goods and services, It involves the diagnosis of information needs and the selection of relevant inter-related variables about which valid and reliable information is gathered, recorded and analyzed.

This chapter of research methodology of report consisting of the series of steps of research process for the study BUYING BEHAVIOR OF COMPUTER PROCESSORS. This chapter consisting of the research process in both the aspect i.e. consumer buying behavior and business buying behavior for different computer processors. Along with this it explains the all of the research tools from collection of data till analyzing of collected data. Sample Size : Sales Persons Dealers Consumers Sampling Method Data Collection : : : : : 7 20 55 Convenience Sampling. Primary & Secondary Data.

DATA COLLECTION After making of the list of the needed information, source of data and the sampling plan the next step is taken out for the collection of data. In this study of the data is collected from primary as well as secondary data. The details of the source of the data are :  Primary & Secondary Data.

Primary Data : Primary data are collected with the help of :  Questionnaire, Survey and feedback form.  Through interviewing of consumer and dealer.  Product supplement and Manual.  Product warranty cards. Secondary Data : Secondary data are collected with the help of :  From the books and journals of Intel.  From the

site www.intel.com, www.amd.com www.computertoday.com  Information from different officials.  From the magazines and newspapers article of Intel and others.

ANALYSIS INSTRUMENT After identify the variables and other factor on that basis the data is to be analyzed it is necessary to identify the tools and instrument through which the analysis of data is to be done and presented. So that it lead to the meaningful and good results from the analysis. In this study, we use the following instrument of analysis of data : Tables

   

Graphs and Charts Ratios Ranking Percentage

MACRO ANALYSIS  Most of the owners belongs to the income group of 300,000 and student category but on the other hand dealer have turnover around Rs. 15,00,000.  85 % respondents have the PC and on other hand only 5% have the laptop computer own and in that 92 have Intel Based processors.  97% are aware and performance about the Intel Brand and only 2% are aware about the AMD Processors.  90% are overall satisfied with the Intel Processors but on the other hand AMD have the 5% of the overall customer satisfaction level.  74% of the population says that the effective product education and supplement is to be supplied with the product and 90% of the Population know about the Intel service providers and overall satisfied with that.

92% of the population are strongly agreed that Intel uses the world best Technology in their processors.

84% of the population considered the technology first while purchasing the processors and the consumer perception about speed, company, technology, after sale service, warranty policy and price is excellent.

Friends and family members have the more influence in buying decision.

95% of the Intel Dealers says that the Intel have the maximum sale, most population, customer satisfaction than others.

88% of the dealers are the authorized dealer of Intel and they deal in genuine Intel Products.

Dealers say our 92% customers are satisfied and Intel influences the choice of consumers rather than the other brand in the market.

Dealers says the frequency of visit of Intel supervisor is mostly 2- 4 days in a week and 80% of the dealer are unsatisfied with the promotional activities of Intel and provides the marketing support to big dealers only.

91% of the dealer grades the Intel as the first position among other brands.

BUYING BEHAVIOR FINDINGS The most preferred and strong points are observed and find during the study are:     Intel products have the more customers irrespective of other competitors i.e. AMD. Intel premium providers are very happy with the Intel business criteria. As the advertisement expenses of Intel are very low but in comparison to others the brand awareness of Intel is very high. In India Intel is only company that providing the Laptop products and other accessories up to latest technology and also the number of range of products in laptop computers rather than other companies i.e. AMD and Cyrix. Intel divides its buying behavior consumer and business buyers in SMB unlike other competitors for facilitating the quality products and services. Friends and family members influence respondents more advertisements have comparatively less influence on buying decision. Relatives have negligible influence on purchase decision. Irrespective of price the technology and speed are most preferred element. Perception of consumer about the attributes like product, company, technology is favorable to Intel. The main problem of consumer is find to be the price of product irrespective to others competitor i.e. AMD and Cyrix. The main problem of dealer is find to be that no advertisement assistance any other sales promotional and discount schemes for dealers.

   

The customer satisfaction of Intel consumer and dealer is remarkable in comparison of other competitors.

RESPONDENT COMPLAINTS The complaints that are encountered during the study period from dealer as well as customers in suggestions columns of questionnaire are:  The first ever complaint of Intel product is that price of all product in comparison to other is very high.  Consumer says Intel gives 5-year warranty on their product but dealers gives only for 1 year.      Number of Advertisement on television is very less. Intel after sale service towards laptop products is not satisfactory. No range available for laptop products in any of brands. Intel after sales service is not satisfactory. Procedure for replacement of product is very lengthy and it takes lots of time.  Service cost of premium provider is very costly and not satisfactory up to cost.  Dealer says any company does not give the advertisement assistance.

 

Intel attitude towards sub dealer is not up to remark. Dealer says that sales and promotional activities are not satisfactory.

RECOMMENDATIONS As the recommendations that are given by the dealer and consumer in suggestions columns of questionnaire for Intel are:  As price is most preferred attribute, so prices of product should be reduced as to make price competitive.  After sales service should be improved, by the arrangement of authorized service centers and dealers.  More advertisement should be given on television, newspapers etc. and based on childrens and family members.  The Company should provide promotional schemes & discount scheme to satisfy the consumers.  Advertisement for business buyers should be given and

advertisement assistance should be given to dealers.  Service of premium providers should be in reach of each user by reducing the prices and more service centers should be opened.

Intel should sponsors the T.V. programs, films and public services to promote the brand.

The company should promote its brands so that the target consumers hear its name about the technology.

The number of Authorized whole seller and dealer should be increased.

The more support should be given to authorized assemblers.

LIMITATIONS OF STUDY Though every effort was put in to make this report authentic in every sense, yet there were few factors, which might have their influence on the final report. Hence limitations of the study are:  This study is based on the primary data and observations; hence the probability of personal bias cannot be over rule.  Limited time is also a limitation due to much of the dealer and target consumers are not to be surveyed.  This study is conducted only in some part of Delhi due to of limited time constraints, so that results are confined to that area only.  Data could not be collected correctly as sometimes respondents did not respond seriously to the questions an d their response may not reflect the real picture.

Some times the dealers does not respond correctly due to of business time and due to of ill mood for conversation but tries to make possible and unbiased. Respondents, no matter, how honest they, normally do not exhibit their attribute and this kind of study retains such limitations.

In-co-operation of few dealers and consumers is another limitations of the study.

Major limitations number of respondent was very small which may not be true representative of population. CONCLUSION

In Delhi near about all dealers and retailer of computer hardware deals in Intel Processor.

Latest Technology and speed are the first attribute of choice of consumer and dealers.

All companies divides its buying behavior consumer and business buyers in SMB unlike other competitors for facilitating the quality products and services.

Dealer says if promotional activities and advertisements are to be increased then sale can be increased.

 

Discount schemes and gifts should be introduced for big Dealers. Credit period should be allowed.

Consumer buyer decision mainly influenced by the friends and already user views.

Mostly consumers are interested in buying the computers during budget time.

Most of Intel based PC and laptop are happy with their performance.

 

Most of consumers are waiting for the other range of processors. Most of the consumer preferred the technology and speed first rather than the price and advertisement.

Please Tick () on Choice: QUESTIONNAIRE CONSUMER 1) Do You Own A Computer? A) Yes B) No 2) If No Which Processor Based Computer Would You Like To Purchase A) And Intel B) Celeron C) Cyrix Specify D) AMD Why

___________________________________________. 3) If Yes Please Specify Type of Computer? A) 4) PC B) Notebook C) Server

For Whom Did You Buy PC?

A)

Personal

B)

Spouse HP

C) D) Acer D) AMD Why

Children

5) Which PC Do You Own? A) Assembled B) HCL C) 6) Which Processor Your Computer Own? A) Intel B) Celeron C) Cyrix 7) Specify

This

___________________________________________. 8) Which processors uses The World Best Technology In Their Products A) Intel B) Celeron C) Cyrix D) AMID

9) Performance Of Your Computer With above specified Processors Is A) Excellent B) Very Good C) Good D) Poor E) Fair 10) Have You Ever Avail Service Of any processors Premium A) Yes B) No If Yes Specify Name _______________________________________ 11) Product Education And Supplement With The Product. A) Manual B) Warranty Card C) Credit Facility D) All Mentioned 12) Would You Recommend Any Person To Purchase which Processor? Specify ______________________________________________. 13) Which Factor You Consider Most While Purchasing A Processor A) Technology Price B) Speed C) Company image D) Name

14) What is Your Perception About The Following Factor of computer Processors. Factor Price Speed Company Name Technology After Sale Service 15) How Did You Came To Know About different brands of processors. A) Friends B) Family C) Advertisements D) Dealer 16) What is The First Word That Comes In Your Mind When You Hear About any processors brand. Excellent Good Poor Cant Say

__________________________________________________________ 17) Do You Remember Any processors Advertisement A) Yes If Yes: A) Intel Also B) No B) Celeron Specify C) Cyrix Media D) AMD Place

_____________________

_______________ 18) Do You remember The Punch Line of any processors brand A) Intel B) Celeron C) Cyrix D) AMD Specify ___________________________________________________.

19) Any Suggestions And Complaints Respondent Profile First Name _________________ Last Name ________________ Age _______ Address ______________________________________________________ City _________________ Pin _______________________________________ Phone No ______________ Mobile No _____________ E-Mail ID __________ Profession A) Student B) Business man

C) Service man D) Self Employed Annually Family Income ( More than) A) 100,000 B) 150,000 C) 200,000

D) 300,000

Signature 1) A) 2) Are You Dealer B) Sub Dealer C) Retailer D) Sub Retailer Which Brand Of Processor Based Computer or Processor Do You Deal A) Intel B) Celeron C) Cyrix D) AMD

3) Which Brand Of Processor Based Computer or Processor is Popular, Most Demanded A) 4) Intel B) Celeron C) Cyrix D) AMD

Why It Is Popular Or Demanded Most?

Please Specify _____________________________________________. 5) Which Type of PC Do You Own? A) 6) Assembled B) HCL C) HP D) Acer

Are You Authorized Assembler Of any processor brand A) Yes B) No

If YES please specify A) 7) Intel B) Celeron C) Cyrix D) AMD

Are You Authorized Assembler Of any Assembled PC

(if Yes Then Specify ) A) 8) HCL B) HP C) Acer

Which Processor Have the Maximum Sale At To Your Shop? A) Intel B) Celeron C) Cyrix D) AMD

9) Your Opinion About The Performance Of Computer With computer Processors is A) D) Poor And Which A) 10) Intel Excellent E) B) Fair Very Good C) Good

B) Celeron

C) Cyrix

D) AMD

Rank The Following Brand Of Processor As To Your Perception (From A to D)

11)

Please Specify To Which fou Influence The Choice Of Customer A) Intel B) Celeron C) Cyrix D) AMD

12) A)

The Choice Of Customer Towards Branded System Always 13) B) Some Times C) Mostly D) Never

Which Factor You and Customer Consider Most While Purchasing A Processor

A) Price B) Speed C) Company Image D) Technology 14) Frequency Of Visit Of any brand Supervisor (In a Week) A) And Whom A) 15) A) 16) A) Intel B) Celeron C) Cyrix D) AMD 12 B) 24 C) 45 D) 56

Which Provides You Necessary Marketing Material Intel B) Celeron C) Cyrix D) AMD If Yes Please Specify Board D) B) Hoarding Glow Sign Board C) News Paper ad Support E) Pamphlets F) Other

17)

Which Provides You Ever Any Promotional Schemes A) Intel B) Celeron C) Cyrix D) AMD

18) 19)

Please Specify Type _______________________________________. Would You Recommend Any Person To Purchase Which Processor?

A) 20)

Intel

B) Celeron

C) Cyrix

D) AMD

Any Suggestions And Complaints _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________

Main Points : Project Report on credit schemes of State Bank of India [SBI] and other Banks. Project Report on Banking System, Introduction of Banking, Commercial Banks, Banking in India, Banking environment in india, India Banking, SBI Bank, SBI Banking, SBI Card, Business Card, SBI Credit Card, Loan Scheme, Loan Repayment, Interest Rate of Banks, Security, ATM of State Bank of India, Use of ATM Card, SBI Regulations

Project Report "Banking System" in India Introduction of Banking

Banking regulation Act, 1949, defines banking as accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demands or otherwise and with draw able on demand by cheques, draft or order otherwise.
Functions of Commercial Banks :

1. To change cash for bank deposits and bank deposits for cash. 2. To transfer bank deposits between individuals and or companies. 3. To exchange deposits for bills of exchange, govt. bonds, the secured and unsecured promises of trade and industrial units. 4. To underwrite capital issues. They are also allowed to invest 5% of their incremental deposit liabilities in shares and debentures in the primary and secondary markets. 5. The lending or advancing of money either upon securities or without securities. 6. The borrowing, raising or taking of money. 7. The collecting and transmitting of money and securities. 8. The buying and selling of foreign exchange including foreign bank notes.
Banking scene in India

The banking sector in India is passing through a period of structural change under the combined impact of financial sector reforms, internal competition, changes in regulations, new technology, global competitive pressure and fast evolving strategic objectives of banks and their existing and potential competitors. Until the last decade, banks were regarded largely as institutions rather akin to public utilities. The market for banking services were oligopolies and Centralized while the market place was regulated and banks were expected to receive assured spreads over their cost of funds. This phenomenon, which was caricatured as

3-6-3 banking in the united states, meaning that banks accepted deposits at 3%, lent at 6%, and went home at 3 p.m. to play golf, was the result of the sheltered markets and administrated prices for banking products. Existence of entry barriers for new banks meant that competition was restricted to existing players, who often operated as a cartel, even in areas where the freedom to price their products existed. The market place began to change for banks in India as a result of reforms of the financial sectors initiated in the current decade. On account of policy measures introduce to infuse greater competitive vitality in the system, the banking has entered in to a competitive phase. Competition has emerged not only from within the banking system but also from non-banking institutions. Lowering of entry barriers, deregulation of interest rates and growing sophistication of customers have made banking far less oligopolistic today. Introduction of capital adequacy and other prudential norms, freedom granted to enter into new turfs and greater overlap of functions between banks and non-banks have forced banks to get out of their cozy little world and think of the future of the banking.
Emerging Environment of Banking in India

Full convertibility of rupee leading to free mobility of capital, which will mean virtual collapse of the national borders for trade and capital flows. Greater coordination between monetary, fiscal and exchanged rate policies for achieving the goals of faster and sustainable economic growth, macro-economic stability and export promotion. Close integration of various financial markets such as money market, capital market and forex market. Removal of lowering of existing barriers of competitiveness, which are present today in the form of quantitative instructions on certain imports protective custom duties, reservation of certain utilities for the public sector. Growing privatization and commercialization infrastructure sector. Today, Banks customers are better informed, more sophisticated and discerning. They also have a wide choice to choose from various banks and non-bank intermediaries. Their expectations are soaring. This is particularly true for banks corporate clientele but also applies to customers from personal segment. This is changing profile of customers call for a shift from product-based approach to customers-based approach. A bank aiming at maximizing customer

value must, of necessity, plan for customized products. A combination of marketing skills and state-of-the-art technology should enable to bank in maximizing its profits through customer satisfaction. In the next millennium banks will have to be more and more cautions about customer service, profitability, increased productivity, to keep face with changing banking scenario. As banks in India prepare themselves for the millenium these are the shifts in the paradigm they are likely to experience. The 21st century may see the dawn of DARWINIAN BANKING. Only the banks could fulfill the demands of markets and changing items would survive and prosper. A word about SBI card SBI Segment : Small business credit card (SBI credit card) Preamble : Small business units, retail traders, artisans, village industries, small-scale industrial units and tiny units, professionals and self employed persons etc., contribute significantly to the growth of our economy. The entrepreneur himself manages many of the units. Very often, these entrepreneurs complain of procedural delay in sanctions and renewal of limits. They also find it difficult to cope with the demands for audited balance sheet and other statements sought by the bank from time to time for availing credit facilities. With a view to providing hassle free financial supports to the above categories of entrepreneurs who have shown commitment to run the unit successfully and who are dealing with the banks for last two years satisfactorily, new and friendly credit product namely small business credit card scheme is designed. Under the scheme, cumbersome procedural aspects relating to reviews and renewals, submission of balance sheet, stock statements and other statements are done with credit delivery made simple and easy. Purpose : To meet the credit requirements of small business units, industrial unit, retail trader, artisan, Small Scale Industry (SSI) and tiny units. Eligibility : A. Customers of the following segments with a satisfactory track record for the last two years enjoying credit facilities.
y

Small industrial units (SSI and tiny units including artisans)

y y y

Small retail traders (Under SBF) Professional and self employed persons Small business enterprise

B. Units who do not enjoy credit limit with us/other banks at present with excellent performance and credential may be considered. Quantum of loan : Loan up to Rs. 5 Lakh can be sanctioned to eligible persons. Assessment : The small business credit card limit can be fixed as follows :
y

For small business, retail trader etc. 20% of the annual turnover declared for tax purpose or last twelve months turnover in the operative accounts, whichever is higher.

In respect of parties with good track record, where sales tax returns are not available, the credit limits may be decided taking into consideration the actual turnover in the accounts during the last two years.
y y

For professionals and self employed persons, 50% of their gross annual income as per IT return shall be considered as the limit for issuing the SBI credit card. For small scale industrial units, tiny sector units the assessment norms in vogue as per the Nayak Committee recommendations would continue.

Validity :
y y

Credit card limit will be valid for a period of three years, subject to satisfactory conduct of the accounts. Annual review will be done based on conduct/operations of the A/cs. A major portion of the sales turnover should have been routed through the accounts as revealed by the credit summations.

Repayment :
y

The working capital advance may be continued subject to that review every year provided the credit summations in the account is not less than 50% of the projected sales turnover. If the credit summations is less than 50% of projected

y y

sales turnover. The outstanding as on the due date of review should be made repayable in suitable monthly installments. The term loan is repayable in suitable installments with in a maximum period of five years. In case of composite loans, only the term loan is repayable in installments up to a maximum period of five years.

Interest rate : As per extent instructions issued from time to time relating the market segment. Refinance : No refinance is to be claim from SIDBI Security : Primary : Hypothecation of the stock in trade receivables, machinery, office equipment. Collateral : Under SSI-No collateral security as per existing guidelines of RBI. User SBF :
y y

Up to Rs. 25000/- No collateral security. Over Rs. 25000/- charge over movable/immovable property or third party granted.

However, in case of the excellent track record, sanctioning authority may waive collateral requirement. Margins : Up to Rs. 25000/- - NIL Rs. 25001/- to Rs. 5,00,000/Documentation : Documents as per extant instructions. - 20%

Credit Card - A Convenient Banking Product : The credit card is a hassle free convenient banking product aimed at simplifying the credit delivery mechanism. Cumbersome procedural aspects relating to reviews and renewals, submission of stock statement, balance sheet and other statements are done away with. The credit limit will be worked as detail above. Small business credit card
y y y y y y y y

Card No. Name Account No. Tel. No. Limit Rs. Date of issue Valid upto .. (Branch Code) Card holders Photograph with signature

Signature of the Brach Manager

The borrower would be issued a photo card indicating sanctioned limit and validity of the limit (sample card) Insurance :
y y

Fixed assets/stock pledged/hypothecated to the bank be fully insured at least to the extent of the bank interests. Bank may waive insurance of assets for equipment against the fire and other risk up to Rs.25000/-

Cover under credit guarantee scheme : All eligible loan accounts sanctioned for small scale industries (other than services) would qualify for cover under CGTFSI scheme (presently the scheme has been introduce in five circles on pilot basis viz. New Delhi, Chandigarh, Lucknow, Patna & Hydrabad). Operation :
y y

Small business credit card accounts should be maintained in a separate ledger. Cheque book should be issued and marked as small business credit card account.

y y y y y y

Pass book should be issued for mall business credit card holders. Stock statement waived. Submission of audited balance sheet waived. Borrower would be issued a small business credit card with photograph thereon. Cost of photograph to be borne by banks. IRAC norms would be applicable. Brief opinion report should be recorded. Marked inquiries should be made and recorded in the opinion report and singed by the field officer/cash officer or officers not below that rank. Units within a radius of 5 kilometers may be covered intensively for the issue of credit card. This condition may be waived for such of those units already in the book of the branch.

Inspections :
y

Half-yearly inspection/monitoring to ensure the end user funds.

Sanction :
y y

Required loan may be sanctioned with in a week after receipt of detailed information. Control return after sanction may be sent to next higher authority for approval .

Scoring Model :
y

Loan would be sanctioned up to Rs. 5,00,000/- based on the simplified scoring model as given in annexure- II. Those who are scoring less than 60% would not qualify for the loan.

Rationale :
y

New schemes for hassle free credit facilities to small borrower.

Automatic Teller Machine (ATM) An ATM (Automatic Teller Machine) card is useful to a card holder as it helps him to withdraw cash from banks even when they are closed. This can be done by inserting the card in the ATM installed at various banks locations. State Bank Cash Plus CARD
y

Signature Panel.

Magnetic Stripe

Features of State Bank Cash Plus Card

y y y

y y y

State Bank Cash Plus Card having the 19 digit. Name of the card holders mention there on it. In case of State Bank Cash Plus Card, there is no expiry period but for the old card, the date after which your card needs to be renewed is the last day of the month indicated on your card. Signature panel on which you must sign as soon as youre your card. It identifies the card as your State Bank Card Plus Card. The magnetic stripe, which contains encoded information. ATM card possess pincode which having the 4 digit.

Use of State Bank Cash Plus Card

y y

We uses our State Bank Cash Plus Card for cash withdrawal from ATMs. We uses it for making the payments for purchase made at the merchant establishments.

Significance of the Study

This study entitled comparative study of various credit schemes of SBI V/s other banks will be helpful for bankers to maintain customers service policy, for customers while deciding their financing needs and also helpful for other researchers for further research in the future. SBI card provides customers with an option, in addition to the existing banking credit facilities available. With an SBI card customers can enjoy hassle-free credit facilities. This study would help us to know about the problems that are faced by the consumers during transactions. It would also reveal the problems that are being faced by the bank employees while dealing with customers and would also highlight the future prospect of SBI card.
Review of Existing Literature :

It is very essential to know whether the study has already been conducted before. If so, how and to what extent ? And because of this scholar has to go through all the existing literature related to the study. SBI Card, very limited studies have been conducted on the subject. Due to the time restrictions scholar could seek advice from only the limited literature, which is available with the bank.

As the concept is completely under the control of various banks and RBI. So the information is directly taken from these sources.
Conceptualization

As the concept includes two terms i.e. cash credit or working capital loans and terms loans. Therefore both the terms are taken into consideration in the proposed study. Due to the privatization of banking sector many big private players entered in this sector giving a tough competition to the existing players. So, to face this stiff competition all the public sector banks have to review their functioning. These aspects will be given importance in this project report. The concept of SBI card, question crops in mind what is a SBI card, What is its shape and size, what is its function. A SBI card is nothing but a identity card containing card holders photographs with signature, card no. Name, A/c No. limit, validity period, branch code with signature of Branch Manager.

Focus of the problem

The study has been conducted at SBI Bhiwani. The main focus of the study is to know about customer s perceptions about various credit schemes. As SBI card is an integral part of SBF (small business financing). So the due weightage is given to SBI card. This study has been conducted by classifying customers into two categories.   SBI Card holders Non SBI Card holders

Objective of the Study

 To find out the market potential of SBI card in Bhiwani.

To know customer s perceptions about various credit schemes of different banks.

 

To compare the credit schemes of different banks. To find out main obstacles while getting finance under various credit schemes.

Limitations of the study

 The time was very limited as for requirement of study.

Taking Sample has carried out the study. Therefore, all the limitations associated with sampling.

Sometimes the respondent does not want to disclose some relevant information.

 

The information provided by the respondent may not be authentic. The sample size was restricted to Bhiwani only.

The Chapterisation of the project report is as following :

CHAPTERISATION

Chapter 1 :  I have discussed about the relevance and importance about the project. I have explained the topic with ATM facilities. Why this study is required? What are the limitations? What are the objectives and what are the steps I have adopted for doing this project.

Chapter 2 :  This study consists of the whole research methodology about the project. It means what are the steps have been taken for doing this study. How much the sample size and what are the variables? So this study consist the complete research methodology. In this chapter the profile of organisation has been also covered. Chapter 3 :  It consists the detail descriptions about the raw data. Here the complete analysis of the data, which is collected from the primary sources. For tabulation the data is converted into the percentage and after that it is tabulated. On the basis of this data the graph are inserted. At last the conclusion is drawn on the basis of this data. Chapter 4 :  It consists the appendices part of the project report in this part I have mentioned the names of all those books, magazines, journals and web-sites from where I have collected the material comes under the head of bibliography. It also consists the questionnaire, which is used for collecting the data.

Universe or survey population

All the customers availing credit schemes in Bhiwani is our universe while the sample size is 50. The sample unit is individuals. Criteria of selecting sample : We are taking the sample on our convenience. Sampling techniques : Sampling techniques may be divided into two categories : (1) Probability sampling : Probability samples are characterized by the fact hat each element of the population has known, non-zero chance of being included in the sample. (2) Non-probability sampling : Non-probability sampling involves personal judgement somewhere in the process. For the present study, convenient technique of sampling (non-probability) was used.

Research Design
A research design is simply a plan for study in collection and analyzing the data. It helps the researcher to conduct the study and ensure that economical procedures are employed and probing is relevant to the problem. Depending upon the objective of the study there is three-research design available : .  Exploratory Research

 

Descriptive Research Casual or Experimental Research

Data Collection : There are two sorts of data available : 1. Primary Data :

Primary Data are those data which are collected to solve a problem or take advantage of any opportunity on which a decision is depending. These data are basically observe and recorded by the researcher for the first time used primary data for my project work. 2. Secondary Data :

Secondary data are those data which are primarily collected by other person for his own purpose. Methods of Data Collection :   Observation Method Questionnaire Method

Identified Independent and Dependent variables : Independent variables : All the external factors are independent variables :   Govt. policy of RBI Environmental factors

  

War Technology Natural Calamities

Dependent variables : All the internal factors of organization are dependent variables :   Company policy Infrastructure

Credit Schemes of SBI Bank and other Banks

Table No. 1 Awareness level about various credit facilities YES 46 NO 04

Most of the respondent are well awared about the credit facilities of different Banks

Table No. 2

No. of respondents availing the credit facilities YES 44 NO 06

Most of the respondent are availing credit facilities from Banks.

Table No. 3 Distribution of Respondents availing the credit facilities from banks. SBI 18 PNB 14 UCO 04 IOB 06 Others 02

Nearly 40% of the Respondents are availing credit facilities from SBI followed by PNB.

Table No. 4 Time since customers are availing credit facilities More than 3 10 2 to 3 16 1 to 2 14 Less than One 04

Most of the respondents are availing the credit facilities ranging from 1 to 3 years.

Table No. 5 No. of satisfied customers Yes 32 No 12

Customers are highly satisfied with their banks.

Table No. 6 Awareness level about various credit facilities of different banks SBI 42 PNB 40 IOB 22 UCO 14 CANARA 12 OBC 08

The credit facilities of SBI and PNB are well known to every respondent.

Table No. 7 (a) Ranking of banks on the basis of interest rate SBI 30 PNB 27 IOB 08 UCO 13 CANARA 08 OBC 14

SBI and PNB are the most preferred banks in regard of interest rates.

Table No. 7 (b) Ranking of banks on the basis of collateral security requirement SBI 26 PNB 30 IOB 16 UCO 10 CANARA 06 OBC 12

Respondents are very much satisfied with SBI and PNB in respect of collateral security requirement.

Table No. 7 (c) Ranking of banks on the basis of attitude of the employees SBI 28 PNB 27 IOB 20 UCO 8 CANARA 10 OBC 07

Respondents appreciate the attitude of employees of the SBI, PNB and IOB.
Table No. 7 (d) Ranking of banks on the basis of services SBI 26 PNB 32 IOB 26 UCO 06 CANARA 06 OBC 04

Respondents appreciate the level of services provided by SBI, PNB and IOB. Table No. 7 (e)

Ranking of banks on the basis of documents required SBI 28 PNB 24 IOB 18 UCO 12 CANARA 08 OBC 10

Customers are happy with the document requirement of SBI and PNB.

Table No. 7 (f) Ranking of banks on the basis of renewal process SBI 38 PNB 22 IOB 16 UCO 08 CANARA 08 OBC 08

Customers are very much satisfied with the renewal process of SBI and tanks to SBI card.

Table No. 8 Main obstacle while getting finance (a) Security (b) Document Requirements 24 08 (c) Red Tapisam 04 (d) Guarantee requirement 08 (e) Attidute of Bank Employees 06

Security requirements are the main obstacle while availing any credit facility.

Table No. 9 Preference order of different parameters (a) Interest Rate 42 (b) Collateral Security 12 (c) (d) (e) Services (f) Document requirement 14 Validity

Attitude of Bank Emp. 08

16

08

Customer prefer low interest rates followed by services. Table No. 10 Preference level of banks SBI 56 PNB 24 IOB 10 UCO 04 CANARA 04 OBC 02

More than half of the respondents prefer SBI followed by PNB.

Table No. 11 Awareness level of SBI Card Yes 38 No 12

A good awareness level is exist about SBI cards.

Table No. 12 Sources of information about SBI card Friends 06 Bank Employees 22 Advertisement 04 06 Publicity

Most of the respondents gets information about SBI card from bank employees.

Objective No. 1 :To find out the Market Potential of SBI card.

Most of the respondents covered in the survey know about the SBI card and feel that this facility is beneficial to them as they can fix the limit for three years.

Respondents even require further guidance related to few things.

Customers feel very enthusiastic about the launch of SBI card in Bhiwani and very sure about its success.

Most of the respondents want an increase in existing limit i.e. 5.00 lacs.

Objective No. 2 : To know customer s perceptions about various credit schemes of different banks.

Most of the respondents like the credit facilities provided by SBI and PNB.

According to most of respondents, PNB is the fastest service provider. It takes only 15 days to disburse the sanctioned loans whereas other banks including SBI takes 40 to 45 days.

PNB is offering the lowest PLR i.e. 11.25% whereas other banks are offering 11.5%.

Objective No. 3 : To find out main obstacle while getting finance under various credit schemes.

According to most of respondents, security and document requirement are the main obstacles while getting finance under various credit schemes.

Suggestions
On the basis of data analysis and interpretations, the following suggestions can be made.

RBI Should reduce the SLR and CRR to increase the credit creation capacity of the banks.

All the nationalized banks should try to improve their service level to face the stiff competition given by private banks..

Banks should reduce the time length between sanction and disbursement of loan.

SBI should increase the limit under SBI card to fulfill the growing requirement of the customers.

Bank employees should bring more professionalism in their attitude while dealing with customers to retain and attract more customers.

Banks should narrow down the spread between PLR and deposit rates.

Banks should advertise and conduct special awareness programs to make SBI cards more popular among customers.

Questionnaire
Name Age .

Income

...

Occupation

...

Q1. Are you aware of various credit facilities of banks ? Yes No

Q2. Are you availing credit facility from any bank ? Yes No

Q3. If yes, from which bank you are availing credit facility ?

Q4. Since when you are availing this facility. a) c) More than 3 year 1-2 years b) d) 2-3 years Less than 1 year

Q5. Are you satisfied with your existing bank ? Yes Q6. If no, then why .. Q.7 Tick the name of banks whose credit facilities are known to you ? a) d) SBI CANARA b) e) PNB UCO c) f) IOB OBC No .

Q8. Rate the banks on the basis of following parameters :

Factors Interest Rate Banks

SBI

Collatarel Security

Attitude of Field officer

Services

Document Renewal required process

PNB UCO OBC CANARA IOB

Q9. According to you what is the main obstacle while getting finance under various credit facilities? a) c) e) Security Red Tapism b) d) Document Requirement Guarantee requirement

Attitude of bank employees

Q10. According to you arrange the parameters in the descending order of their preference? a) c) e) Interest Rate Services Document required b) d) f) Collateral Security Attitude of field Officer Validity period

Q11. Which banks name comes to your mind first while availing credit facility and why? ..

.. Q12. Have you heard about SBI card? Yes No

Q13. If yes, from where? a) c) Friends Advertisement b) d) Bank Employees Publicity

Q14. Do you want to give any suggestions to banks? . .