A

Market Survey Report on

Comparative study between HERO CYCLES and HERCULES CYCLES

“a case of Bareilly city”

CONTENT

CERTIFICATE

PREFACE

ACKNOWLEDGEMENT

CONTENTS

INTRODUCTION

COMPANY PROFILE KNOWLEDGE ABOUT COMPANY OBJECTIVE OF THE SURVEY

RESEARCH METHODOLOGY

HYPOTHESIS COLLECTION OF DATA QUESTIONNAIER

DATA ANALYSIS AND INTERPRETATION

FINDING AND SUGGESSION

CONCLUSION

BIBLIO GRAPHY

APPENDIX

CERTIFICATE

BBA DEPARTMENT

Date………………

This is to certified that .................... is a regular student of B.B.A VIth SEM and He has completed the market survey report on the topic “A Project report on Comparative study between Hero Cycles and Hercules Cycles ” under my supervision.

It is certified that the whole market survey report is based on his individual efforts and the analysis is found up to mark

I therefore recommend that the market survey report prepared by the candidate be sent for evaluation.

...........

Lecturer

BBA Department

Bareilly College, Bareilly.

ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who, directly or indirectly made this project possible.

I have got considerable help and support in making this project report a reality from many people.

I would like to thank Mr........., Lecturer, BBA Department, Bareilly College, Bareilly whose endeavor for perfection, under fatigable zeal, innovation and dynamism contributed in a big way in completing this project. This work is the reflection of his thought, ideas, concept and above all his modest effort.

Shashank Sharma

BBA VIth SEM

PREFACE

The project was undertaken to study the Indian Bicycle Industry in

reference to know the various products and basic services provided by

these Bicycles Companies. Various theoretical and practical aspects were

studied in regard to this project. The project is aimed at studying the

reason why the consumer purchases any particular Bicycle of any

particular segment and what are those attributes which attracts the

consumer towards them and compel them to make their decisions.

Various parameters were analyzed to know the current status of

the Indian Bicycles Industry and their various products which

are offered to the customers.

Introduction

HERO CYCLES

A name synonymous with the two wheelers in India began its journey around four decades ago. Like every success story, Hero’s saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning.

The Hero Group began with a simple philosophy: “To provide excellent transportation to the common man, at a price he could easily afford”. It is this spirit which drives Hero, even today the dream of providing total satisfaction in all its spheres of activities.

The saga of HERO started in 1956. Starting as manufacturer of bicycle components, Hero has today grown into multi-unit, multi-product, geographically diversified, manufacturing companies for bicycles, motor cycles, mini motor cycles, mopeds, cold rolled steels and components. The flagship company of the group HERO CYCLES LTD. entered into the “GUINNESS BOOK OF WORLD RECORDS” as the largest bicycle manufacturers of the world in 1986 and continues to hold the envious record ever since then. Currently it is producing 21500 bicycles per day.

Group Turnover is Rs. 20000 Crore in 2007-2008 of which EXPORT share is more than 15%. The exports are being made to all parts of the world including sophisticated markets of Europe & US. Today Hero is the largest exporter of two-wheelers in India, besides being the fastest growing Indian Two-wheeler Company.

One of the group companies, Hero Honda also awarded as Company of the Year by Economic Times in 2009 as it increased its market share from 54% to 58 %.The main component of all Hero group companies are CR Steel therefore growth in these companies means growth in Hero Cycles CR Division.

The group has redefined the concept of ANCILLIARISATION by extending technical & managerial support to the ancillaries. Consequently, HERO HONDA has managed to achieve indigenization of over 95% - a Honda record worldwide.

Hero is proud to have a DEALER NETWORK of more than 4000, which has been cemented with warmth of personal relationship, rapport & fraternity. With a deep sense of belonging to the Hero fraternity, the Group’s dealers have catalyzed growth and act as a strong bridge between the customers and the group.

More than 20,000 employees of the group have vividly and continuously demonstrated that human endeavor can ceaselessly achieve excellence and distinction given a congenial and conducive environment. This has been amply testified in very low employee turnover and world-class productivity.

The flag ship company of the group HERO CYCLES LIMITED has been practicing JUST-IN-TIME (JIT) INVENTORY since the period when the term was not widely known. The practice is prevalent in all the group companies.

The group Chairman Mr. Brijmohan Lal, is one of the leading business personalities of the country. He was awarded Businessman of the year award in 1994 by a leading business journal of India. Mr. Brijmohan Lal is the former President of Association of Indian Automobile Manufacturers (AIAM) as well as of Confederation of Indian Industries (CII), the premier Industry Association of India.

On Enterprise Resource Planning, the Group has already started its journey and has started working on SAP R/3 module in Hero Honda, Hero Cycles Ltd. and Hero Cycles Ltd. (C. R. Division). With the expertise available in-house the group has mustered to implement SAP in other Companies on its own.

COMPANY PROFILE

Hero Cycles Limited (Cold Rolling Division) has been promoted under backward integration plan by Hero Cycles Limited, the world’s largest bicycle manufacturer. The plant was commissioned in July, 1991 at Bareilly at a cost of Rs. 320 million with an installed capacity of 50,000 MT in consultation with MECON, Asia’s largest engineering consultants which had a technical collaboration with WEAN UNITED, U.S.A.

An additional 6-HI COLD REDUCTION MILL based on a joint Engineering & design by MECON & Hero Cycle Ltd. along with hydrogen annealing and Electro cleaning line has been installed for better product quality and capacity enhancement to 1,30,000 TPA with an additional investment of Rs. 700 million.

The plant was commissioned primarily to cater to the group requirements. However the product was soon accepted by major automotive and White Goods manufacturers and today has been supplied to other market segment also, e.g. automobile sector, Maruti Udyog Limited ancillaries/vendors for both formed and drawn components -in D. DD, EDD, MC-11 and other medium and high carbon grades.

Towards realization of CUSTOMER DELIGHT, the plant has been investing constantly in up gradation of Technology and Human Resources. Cold Rolling Division is renowned for its tradition in maintaining high standards in the Product Quality constantly, Reliability in customer servicing and is also committed to attune to the changing quality standards through continuous up gradation of Product, Process and Human Resources.

At the base of all Hero Group’s activities is one basic ingredient - cold rolled steel. Cognizant of the importance to ensure perfect quality of the basic raw material, the Group established its own cold rolling mill for steel processing in 1990. With an installed capacity of 50,000 MT per annum, the mill has state-of-art equipment including 4-HI reversible cold rolling-cum-skin pass mill with rewinding

line, C. R. Slitter, and a modern close annealing facility to maximize the quality of its products. The mill has several firsts to its credit, including hydraulic auto gauge controls, computerized pass schedules, automatic slow down and a totally enclosed, semi continuous pickling line; apart from effective anti-pollution and safety controls which were incorporated from the very beginning.

The company has also implemented SAP R/3 with the assistance of SIEMENS & MECON.

Hero Cycles Limited, C. R. Division has also entered into an agreement for technical assistance to improve operation & maintenance of the plant with the help of technology & know how from Kawasaki Steel Corporation, Japan. Kawasaki Steel Corporation will help C. R. Division for improvement of Production Yield, removal of Defects, reduction of Customer Returns & improvement of Maintenance Operations against certain predetermined Targets.

Kawasaki Steel possesses expertise based on the wealth & experience and expertise acquired through development, operation & maintenance of its own Cold Rolling Plant in Chiba and Mizushima Works, Japan.

Primarily Cold Rolling is done for two purposes:

1) To improve the surface finish of the steel

2) To improve the gauge accuracy.

Introduction

HERCULES Cycles

The Group has forged strong joint venture alliances with leading international companies like Mitsui Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien has consolidated its status as one of the fastest growing diversified business houses in India. Tube Investments of India Limited is the flagship Company of Murugappa Group. The Company has 15

manufacturing/assembly units spread across the country. These units are ably supported by marketing offices that act as interface between customer requirements and production team. The Company’s shares are listed on the National, Mumbai and Chennai stock exchanges within India and GDRs on the Luxembourg Stock Exchange. The Company’s product segments are - Engineering, Metal Formed Products, E-Scooters, Fitness Equipments and Cycles.The Group traces its origins to 1898, when Dewan Bahadur A M Murugappa Chettiar went as an apprentice to Burma (now Myanmar). Quick to learn financial skills and Burmese, he realized he was destined to greater achievements; he founded a firm in Moulmein, a large port-city in Lower Burma. This grew into a prosperous family-owned business, with interests in Banking, Rubber and Trade, covering Malaya (Malaysia), Ceylon (Sri Lanka), Indonesia and Vietnam. The outbreak of the World War II and subsequent political upheavals in the region cut short the firm’s growth. While a good portion of its hard earned fortunes were lost, the family had the foresight to move significant assets to India; this financial

prudence ensured that the business would rebound after the disaster. And rebound it did. In India, the Group had engaged in businesses like Rubber, Steel cabinets, Yarn and other traded goods. But the real major industrial opportunity came soon after Independence. Political Independence spawned Economic Independence: and AMM Murugappa Chettiar, Dewan Bahadur’s eldest son (and by then, head of the family) was quick to realise it. His vision was to start a business that would manufacture a product for the common man which they could sell in large numbers. Thus, in 1949, TI Cycles of India (TICI) was born in collaboration with TI of UK. It was the Group’s first of many successful Joint Ventures and also its first foray into large scale manufacturing. Later, as a measure of backward integration two more companies were formed: Tube Products of India (TPI) in 1955, to make steel tubes for bicycle frames and TI Diamond Chain (TIDC) in 1960 to make bicycle chains. Over a period of time these two businesses have moved up the value chain from bicycle parts to higher technology products.During the 1990s TII made many bold acquisitions to enhance its presence in its core businesses. The most notable, was the case of Satavahana chains, a sick BIFR company that was turned round to a highly profitable unit. Other success stories were the acquisition of a Japanese Tube plant and a German Chains plant which were re-erected in Chennai to address the growing export markets. A successful GDR issue in 1994 increased its financial muscle and accelerated both acquisitions and expansions. Capacities were increased in all its units to meet the growing customer demands. In the six decades of its existence, TII has built significant skills in engineering and metallurgy, which is fully supported by a central R&D function. A Total Quality Management approach has ensured a satisfied community of customers and TII is the preferred supplier in all the markets it operates. TII continues the tradition of financial discipline and prudence set by the founding fathers. It is this tradition that has earned TII the unique distinction of uninterrupted dividend distribution since 1954. TPI was set up in 1955, in collaboration with Tube Products, U.K. Today, TPI is a true global player, with five manufacturing facilities, including one in China. For over 50 years, Tube Products of India (TPI) has been an undisputed leader in the Indian market for precision-welded ERW and CDW steel tubes, and manufactures specialty Cold Rolled Close Annealed (CRCA) strips catering to international standards and high strength tubular components. TPI caters to the demanding needs of the automobile, general engineering, boiler, white goods and fine blanking industries. TPI is the market leader in precision tubes in India, with a dominant share of business in telescopic front fork inner tubes and cylinder bore tubes for shock absorber and gas spring applications. It also manufactures propeller shaft tubes for the automotive segment and specialty products such as rear axle tubes, side impact beams, tie rods and drag links. TPI produces special extra deep drawing, high tensile, medium carbon, and high carbon CRCA strips that are used in industries such as bearings,

automobile, fine blanking auto ancillaries and general engineering. Investments are also being made for manufacturing dual phase steels, hardened & tempered steels and highly spheroids steel for fine blanking applications.

HERCULES Cycles of India:

TI Cycles of India (a Unit of Tube Investments of India Ltd.) is one of the leading bicycle manufacturers in India. Started in 1949 by the Murugappa Group and Sir Ivan Stedeford of Tube Investments Group in UK, TI Cycles is the maker of the country's most famous cycle brands like Hercules and BSA cycles. A pioneer in the Cycles market, TI Cycles, has constantly come up with new trends in line with evolving consumer needs. Recently, the company has entered the growing fitness equipment segment in order to cater to the contemporary consumer needs. TI Cycles of India has manufacturing plants at Ambattur near Chennai, Nasik in Maharastra and Noida in Uttar Pradesh. Currently it is the first largest cycle manufacturer in India and number one manufacturer in special segments like Mountain bikes, Sports Lite Roadsters, Racing bikes etc. It has manufacturing capacity of around three million bicycles per year. With a network of 2500 plus dealers and backed by a strategic outsourcing policy, the company has a nationwide presence. TI Cycles is an exporter to many regions across the globe - Europe, South East Asia and Africa; being some of them. The vision of the company is “To be the most preferred brand in fitness, recreation & personal mobility solutions”.

• 1949 - Murrugappa Group founded TI Cycles, with Tube Investments, UK. • 1951 - Hercules bicycles rolls out on to Indian streets. • 1956 - Tube Products of India established for producing tubes for bicycles. • 1960 - The one-millionth cycle hits the streets. • 1974 - TI Cycles celebrates 25 years of pioneering existence across various fields. • 1980 - BSA SLR is launched and soon becomes the largest selling in its class. • 1983 - The new BSA Champ sets children free. • 1991 - Street cat prowls the Indian Streets. • 1992 - Riding over mountains turns smooth with Hercules MTB. • 1993 - Rough and tough BSA Rockshox takes on Indian roads • 1994 - BSA Ladybird brings smiles to many Indian girls' faces • 2006 - TI Launches its first flagship store, BSA GO in Ahmedabad. • 2007 - BSA Zone, the 2nd retail format is launched and by the year-end grows to 80 outlets. • 2008 - While consolidating the retail business, TI introduces Hercules Express, BSA Workouts and Track & Trail. The retail footprint increases to 200 Hercules BSA Zone and 44 BSA GO outlets.

• 2009 - TI retail consolidates further to 425 outlets across the country in a variety of formats.

Objective Of The Survey

OBJECTIVES:

To appraise the present scenario of the Indian Motor Bike Industry. To identify the key factors of consumer satisfaction . To have a comparative analysis of the customer satisfaction level for

the HERO and HERCULES Cycle Companies.

RESEARCH METHADOLGY

RESEARCH DESIGN:

Research design is a research plan which requires that : What data are to be collected ? What research techniques and instruments are to be used ? How a sample is to be selected ? and How information is to be collected from this sample ?

A research design specifies the methods and procedures for conducting a particular study. Broadly speaking, research design can be grouped into three categories-exploratory research, descriptive research and casual research.

RESEARCH INSTRUMENT

Exploratory research is used in this project report in order to understand the perceptions of different consumers towards bike industry, and their behavior pattern by studying their different demographics ( such as – age,

occupational, income level etc.). This is the most popular type of research technique, generally used in survey research design and most useful in describing the characteristics of consumer behavior.

The methods used were following:

Questionnaire method Data collection. Direct Interaction with the users.

QUESTIONNAIRE METHOD

This is the simplest method of collecting data. In this method a list of printed questions is placed to the people, in which questions are asked with the given objective answers, from which people have to select the best option. This is to be found that questionnaire must be interesting, objective based, unambiguous, ease to complete and generally not burdensome, just to motivate respondents to answer truthfully and completely because consumers are often unwilling to give time for responding the surveys. The format and wording of questionnaire should be simple and questions are arranged in a proper sequence so that consumers can understand it easily.

The interview was conducted by filling up the questionnaire by different categories of people and they are given full liberty to fill up these questionnaire.

Therefore our questionnaire is prepared on the basis of:-

1. Open ended questions.2. Multiple-choice questions.3. Dichotomous questions.4. Likert-Scale questions.

DATA COLLECTION

What is data?

Data could be anything, it could be a name, and number, etc., which is meaningless. Data collected is always in raw form. It doesn’t convey any msg. because it is facts and figure.

Data collected are of two types:

PRIMARY DATA SECONDARY DATA

PRIMARY-DATA

Primary data is that kind of data which is collected by the

investigator himself first time for the purpose of the specific study.

The data such collected is original in nature.

This method of collecting data is authentic.

We can also say that the data collected by the investigator by

primary sources is called primary data.

Now the question arise that, what are the sources of primary data.

Here we use questionnaire and personal interaction with the

customers as our primary sources of data collection.

QUESTIONNAIRE:

The printed set of questions in a paper is called as questionnaire; it

facilitates the consumers to answer the questions freely. These questions

are based on objective answers type, in which the consumers have to

select the best option as per their choice.

A questionnaire of about 18 questions was made and it was given to the

customers to fill it up for our research.

PERSONAL INTERACTION:

Personal interaction means direct communication with the consumers to

get some information about their needs and requirement. In this method

face to face communication takes place.

We also go to the market and to near people and interact with them

personally, about their problem and what they actually need.

SECONDARY-DATA

Data already collected by any person or institution is called

secondary data.

These data are often used by the investigators and other people

having its need.

The advantages of the secondary data can be –It is economical, both

in terms of money and time spent.

The researcher of the report also did the same and collected

secondary data from various internet sites.

The researcher of the report also visited various libraries for

collection of the introduction part.

The sources of secondary data were

Books,

Magazines and

Internet sites.

The secondary data could be collected from Journals, Reports, and

various publications.

DIRECT INTERACTION WITH USERS

Is one of the most popular and easy method of data collection from users.

In this method the investigator directly approaches the users of the product or services.

Here investigator must know the techniques, how to take out the information of their interest from the users.

In this method investigator must be close to the users in order to take related information, otherwise he may not be succeed.

SAMPLE SIZE PLANNING:

Sampling is simply the process of learning about the population on the basis of sample drawn from it. It is that part of the universe {population} which is selected for the purpose of investigation. Sampling may be defined as a part of the whole {population} that represents all the features of the whole under consideration.

Sample size: 50

Approach: Convenience sampling

SUGGESTIONS & RECOMMENDATIONS

The customers of CR Steel Strips/Coils perceive quality as the most important factor while purchasing. More customers will be attracted towards the products if quality parameters such as surface finish, peeling off etc. are improved upon by getting continuous feedback on the quality and other services provided by the company.

The second most important factor is delivery system and price. The price should be competitive with the other suppliers. The third most important factor is Credit policy of the company. Better credit facility should be given to the customers and payment norms should be simplified. Quality should be used to cover the price. Improvement in quality, Services, Delivery and Rate reduction should be made to further increase the market share and to attract the new customers of C.R. Steel Strips/ Sheets. There are some Suggestions, which should be considered in the future for better customer satisfaction. These are: -

Prices should be competitive.

Delivery should be on time as per Quantity scheduled.

Lifting of Material should quickly after the sale for better customer satisfaction

Better credit facility should be given to the customers

In future to attract the new customers Discount should be given.

Communication channels should be improved for providing the maximum satisfaction.

LIMITATIONS OF STUDY

Presence of Human Error: - Some respondents have not given the proper answers, they are not aware of the objectives undertaken for research purposes.

Time Constraint: - Time has also affected the research due to less availability of number of days; survey was conducted in few days.

Technical Complexities: - There was no proper record maintained by the customers about the consumption of C.R. Steel Strips/ Sheets.

Non Co-operation of some Respondents: - Some Respondents did not properly co-operated for giving answers, the basic reason was non-availability of time.

Respondent Biasness: - Some companies were very much favor in one company but they were unable to provide logic behind it.

Ques1. What type of products do you manufacture?

TYPE OF PRODUTS

%AGE OF RESPONDENTS

NO. OF RESPONDENTS

Automobile parts

45% 27

Bicycle parts 35% 21

Others 20% 12

INFERENCE

The graph represents that 45% of the industries that use cold rolled steel in Ludhiana are manufacturing automobile parts, 35% of the industries manufacturing bicycle parts & rest of them i.e. 20% industries are manufacturing Stampings, Radiators, White Goods etc.

Ques2. What is your status in supply chain?

STATUS IN SUPPLY CHAIN

%AGE OF RESPONDENTS

NO. OF RESPONDENTS

1st tier 50% 30

2nd tier 23.33% 14

3rd tier 26.67% 16

INFERENCE

The major amount of industries using cold rolled steel (50%) in Ludhiana comes in 1st tier means they are direct vendors of the industries like Hero cycles, Hero Honda Motors Limited, Maruti Udyog Limited etc.The 23.33% of industries comes in 2nd tier that are vendors of 1st tier industries & 26.67 % industries comes in 3rd tier that are vendors of 2nd tier industries.

STATUS IN

SUPPLY CHAIN

AUTO INDUSTRY

BICYCLE INDUSTRY

OTHER INDUSTRIES

1st tier 19 8 3

2nd tier 6 5 3

3rd tier 2 8 6

INFERENCE

The graph indicates the distribution of various industries under different levels of supply chain. This analysis will be further helpful in analyzing the impact of market fluctuations among various industries.

Ques3. Do fluctuations in market affect your buying behavior?

OPTION%AGE OF

RESPONDENTSNO. OF

RESPONDENTS

Yes 60% 36

No 40% 24

INFERENCE

Out of the total number of respondents 40% of the respondents said that market fluctuations do not affect their buying behavior while remaining 60% industries are affected by fluctuations in market. This shows that if there are market fluctuations, then there is a change in buying behavior i.e. while making purchase, the factors normally kept in mind are ignored

& some other factors are considered keeping in view the prevailing circumstances.

1ST TIER 2ND TIER

3RD TIER

INFERENCE

The above graphs show the effect of fluctuations in market on various industries classified according to their status in supply chain. Through these we can infer that most of the industries in 1st tier are not very much affected by market fluctuations while 2nd tier industries are less affected by the same. 3rd tier industries are the most affected ones when market fluctuations take place.

Ques4. In which form do you buy steel?

FORM OF CR STEEL

%AGE OF RESPONDENTS

NO. OF RESPONDENTS

CR Coils 25% 15

CR Strips 15% 9

BOTH 60% 36

INFERENCE

The graph shows that most of the companies use both CR steel strips as well as coils in their manufacturing operations. CR strips are purchased by very less number of companies I.e. most of those which do not have their own CTL (Cut to Length) machines. So they specify their strip sizes according to their product requirements.

Ques5. Which grade(s) of steel do you purchase?

GRADE PERCENTAGE

D 44

DD/EDD 36

MC-11,12 15

OTHERS 5

INFERENCE

The percentage share of D (Drawing) Grade steel is much higher because it is the main material grade used in manufacturing of bicycles & Large amount of D Grade steel is consumed by the Hero Cycles only. Moreover D grade steel is cheaper than other grades as it has lesser carbon content. Other higher grade steels like DD, EDD, MC-11, 12, IF etc are used in manufacturing other components that require more strength like auto parts, stampings, white goods etc.

Ques7. Which factors do you consider the most while purchasing CR steel?

(Rank 1 – 5 in order of preference)

ATTRIBUTES

AVERAGE RANKING

AUTO INDUSTRY

BICYCLE INDU. OTHERS

PRICE 2.33 1.57 3.25

QUALITY 1.89 2.29 3.01

DELIVERY TIME

2.11 2.86 2.99

CREDIT PERIOD

4.44 4.01 2.98

AFTER SALES SERVICE

4.22 4.28 2.77

INFERENCE

As the graph represents that most of the customers in Auto industry prefer Quality as the major factor while making purchase decision. Delivery time is another factor influencing their buying behavior followed by price and after sales service. It can be seen that in auto industry credit period allowed by the seller is given the lowest rank. This does not mean that this factor is not taken under consideration but it suggests that keeping in view the other factors, this attribute is given the lowest preference.

INFERENCE

It can be seen very clearly that in bicycle industry highest preference is given to Price as an attribute while making purchase. The other factor influencing choice of buyers is quality followed by delivery time, credit period allowed & least preference is given to after sales service.

INFERENCE

As the graph indicates that in other industries, after sales service & credit period allowed by sellers are major factors that influence the minds of customers while making purchase decision. Other factors are also closely held with all these attributes.

Ques8. From which supplier(s) you are buying presently?

INFERENCE

A major chunk of Ludhiana CR steel users purchase CR steel from Hero Cycles CR Division. As per the graph Bhushan Steels is a major competitor of Hero CRD with almost 30% of total sales. Followed by Avon Group, Atlas strips, TATA, SAIL, etc.

Ques9. Do you have any expansion plans in near future?

INFERENCE

As we know that bicycle as well as auto industry is expanding rapidly, so most of the organizations have expansion plans to cater to the increasing future market demand.

80% of the companies said that they have expansion plans in near future i.e. within a period of 1-2 years. The capacity is expected to increase by approx. 30%. This means that the future of CR Steel industry is very bright.

Ques11. What are the major quality related problems that you face while purchasing CR steel?

INFERENCE

The above graph shows the major quality related problems as faced by customers. Most of the customers do not face any kind of quality related problem. If at all, problems like rusting, steel being pitted, improper lamination, inappropriate thickness etc are faced by the customers. If encountered frequently, the customer may reduce the amount of purchasing from that particular seller and may shift to some other source.

Quality Related Problems Percentage

Over Width 6

Camber 7

Rusting 19

Thickness 8

Lamination 11

Grain opening 4

Pitted 5

No Problem 40

Rating of HERO CYCLES LIMITED CR DIVISION IN TERMS OF FOLLOWING PARAMETERS

a. Company image b. Delivery c. Conformance with specificationsd. After sales services e. Response time f. Accommodation of urgencies

ATTRIBUTES PERCENTAGE RATING

COMPANY IMAGE 81.66

DELIVERY 52.66

CONFORMANCE WITH SPECIFICATIONS

91.66

AFTER SALES SERVICES 71

RESPONSE TIME 40

ACCOMMODATION OF URGENCIES

65

INFERENCE

The graph indicates that HERO CRD enjoys a very good image from the customers’ point of view. More than 80% customers believe that HERO CRD is a well known and reputed company. This is a major factor considered while major factor that customers consider while making their purchase decisions.

Delivery does not get much rating essentially due to recession as there has been a shortage of raw material in the market since couple of months. It was seen that the customers shifted to other suppliers owing to poor delivery by HERO CRD.

The company gets high rating in conformance with specifications i.e. delivering the material having exactly same chemical as well as mechanical properties as specified by the customers.

The company was given average rating in terms of after sales service i.e. it is neither too good nor too bad.

The company is very poor in giving proper response to customer’s grievances. This factor may affect the company in a bad way.

As the graph shows, HERO CRD is quite good in accommodating urgencies as posed by the customers.

QUESTIONNAIRE

Company name: ______________________________________________

Contact person: ______________________________________________

Address : ______________________________________________

______________________________________________

Ques1. What type of products do you manufacture?

a. Automobile parts b. Bicycle parts c. Others

Ques2. What is your status in supply chain?

a. 1 tier b. 2 tier c. 3 tier

Ques3. Do fluctuations in market affect your buying behavior?

a. Yes b. No

Ques4. In which form do you buy steel?

a. CR Coil b. CTL (Cut To Length)

Ques5. Which grade(s) of steel do you purchase?

a. D b. DD c. EDD

d. MC-11 e. MC-12 f. IF

Ques6. What is your monthly requirement of CR steel grade wise?

a. D _____________________________ MT

b. DD/EDD _____________________________ MT

c. MC-11/12 _____________________________ MT

d. Others _____________________________ MT

Ques7. Which factors do you consider the most while purchasing CR steel?

(Rank 1 – 5 in order of preference)

a. Price b. Quality c. Lead timed. Credit facility e. After sales services

Ques8. From which supplier(s) you are buying presently?

Please specify the quantity also.

a. ___________________________Qty __________ MTb. ___________________________Qty __________ MTc. ___________________________Qty __________ MT

Ques9. Do you have any expansion plans in near future & what will be your

increased capacity?

a. Yes b. No

____________________________________MT (approx.)

Ques10. What quantity of your increased capacity of CR steel will you

purchase from HERO CYCLES Ltd (CR Division)?

____________________________________ MT (approx.)

Ques11. What are the problems that you face while purchasing CR steel?

a. ______________________________________________b. ______________________________________________

Ques12. What are the suggestions that you can give to counter those problems?\

a. ______________________________________________b. ______________________________________________

Rate HERO CYCLES Ltd (CR Division) in terms of following parameters:

(Give rating from 1-5) 1 = Poor & 5 = Excellent

f. Company image g. Delivery h. Conformance with specificationsi. After sales services j. Response time k. Accommodation of urgencies

Date: (Signature)