Behavior of Passenger Car Owners in case of Purchasing Tyre- A Case Study on Rahimafrooz Distribution Limited (RDL)

7/30/2019 Behavior of Passenger Car Owners in case of Purchasing Tyre- A Case Study on Rahimafrooz Distribution Limited (

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Behavior of Passenger Car Owners in case of Purchasing Tyre- A Case

Study on Rahimafrooz Distribution Limited (RDL)

Integrity Excellence Customer Delight Innovation


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Internship Report

On

Behavior of Passenger Car Owners in case of Purchasing Tyre- A Case

Study on Rahimafrooz Distribution Limited (RDL)

Course Code-Bus

Submitted To

Mr. Habib Anwar pasha

Assistant Professor

Faculty of Business Administration

Eastern University

Submitted By

Farhana Banu

ID: 062200020


Eastern University

Email: [email protected]

Date of Submission:2010

Eastern University


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LETTER OF TRANSMITTAL

10th June, 2010

Mr. Habib Anwar Pasha

Senior Lecturer


Eastern University

Subject: Submission of internship report.

Dear Sir,

It was a privilege and great pleasure for me to submit my internship report titled

Behavior of Passenger Car Owners in case of Purchasing Tyre which has been

prepared as a part of my degree requirement. I have tried my best to follow the

instructions of my supervisor in preparing this report.

While preparing this report I had to went through with a survey to the customers who use

private car for their transportation. Beyond any doubt it enriches my knowledge and also

promotes my learning experience.

I hope, you would find this report up to your expectation. I would be grateful to receive

your suggestion and comments regarding this.

Sincerely yours,

-------------------

Farhana Banu

ID: 062200020


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Eastern University

STUDENT DECLERATION

This is Farhana Banu 10th batch, ID: 062200020 has declared that the internship report

has prepared for academic purpose. Every statement in this report is true. No part of this

report has been published in any magazine or journal.

Farhana Banu

10th Batch

ID: 062200020

BBA

Eastern University


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AUTHORISED DECLERATION

This is to certify that Farhana Banu 10 th batch, ID: 062200020, is a regular student of

BBA. She has completed her internship successfully at Rahimafrooz Distribution Ltd.

The internship report has prepared for academic purpose. No part of this report has been

published in any magazine or journal.

We wish her every success.

Mr. Habib Anwar Pasha

Sr. Lecturer


Eastern University


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ACKNOWLEDGEMENT

At the very beginning, I would like to express my sincere gratitude to Almighty Allah,

who has given me the chance to complete my internship report in a very comfortable

manner. My gratitude and thanks goes to my respected supervisor Mr. Habib Anwar

Pasha, Lecturer, Faculty of Business Administration, Eastern University, who co-

operated me all through the times for completing my internship report.

I have conducted my report on Consumer behavior in purchasing tyre for passenger

car ownerFor which; I want to express special thanks to all the employees of RDL at

Motijheel. I want to mention special thanks to Mr. Sayed Mahmudul Hasan, ProductManager of tyre, Mr. Kazi Abidul Hoque, Market Development Manager of tyre, Mr.

Manas Paul, Product Executive of Battery. I would also like to give special thanks to Mr.

Sharif Moinul Hossain, Senior Officer of HR of RDL, who helped me in the entire period

of three months whenever I need him.

I wish to take this opportunity to extend gratitude to all those who supported me to

complete this report. These people gave me their valuable time. I express my special

honor to them.


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EXECUTIVE SUMMARY

In Bangladesh the number of using private car as a media of transportation has grown

rapidly for the last few decades. Now-a-days there are huge number of passenger cars in

Dhaka city. Almost all middle class to upper class people use car for their mode of

transport. As technology is developing day by day the demand of car is also increasing

day by day. So, in case of passenger car Tyre is an important part of a car.

In Bangladesh most renowned tyre are sale by the leading company named Rahimafrooz.

Rahimafrooz operates in three broad segments automotive after market, power and

energy, and retail. While these Group activities are coordinated from the Rahimafrooz

Corporate Office (RACO), they have eight Strategic Business Units (SBUs), three other

business ventures, and a not-for-profit.

Rahimafrooz Distribution Ltds (RDL) portfolio includes international tyre brands

Dunlop, Kenda while it also carries very own brand RZ Tyre. Battery brands for the

local market are Lucas and Spark. RDL is the exclusive franchisee of the full range of

worlds leading lubricant brand Castrol. Through Rahimafrooz IPS, UPS and Voltage

Stabilizers, the Company enjoys clear leadership of the emergency power products

market. Besides, it also runs two Automobile service centers in Dhaka and Chittagong.


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In this report I have tried to find out and analysis the factors that customers considers in

purchasing tyre. For this purpose I have done a survey based on some questionnaire, and

also did the frequency analysis, Crosstabs analysis.

The objective of the report is to find out the behavior of consumers in case of tyre. This

report is a descriptive type of research. For that I have to follow some methods like, the

sample size was 100, and non probability sample, and many other things.

V.

After conducting the research it was found out that consumers prefer Rahimafroozs tyre,

because Rahimafrooz provide quality products, they like to purchase from dealer and

retailer, they mainly get information of tyre from print media. There some points that

needs to improve in Rahimafrooz distribution Ltd .For example, they can improve their

local manufactured tyre of RZ, they can give TV commercial ad, etc.

At the end it is clear that Rahimafrooz provides quality product till now and consumers

are satisfied by their products. Consumers have little complains about RDL. And in case

of tyre most customers prefer to buy the tyre from Rahimafrooz, as it is one of the finest

companies in Bangladesh.


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VI.

Table of Contents

INTRODUCTION

1.1 Origin of the report...1

1.2 Problem statement21.3 Justification..3

1.4 Literature review...2-3

1.5 Objective..3

1.6 Scope of the report...41.7 Limitations...4

1.8 Methodology.4-5

COMPANY OVERVIEW

2.0 About Rahimafrooz..6

2.1 History of the company.6-7

2.2 Rahimafrooz Distribution Ltd...7-82.3 Organizational..8

2.4 Vision, values, aspiration, quality policy9-10

2.5 Product/brand of the company..10-132.6 Market: national/international...13-14

2.7 Performance over the year15-16

2.8 SWOT Analysis16-17

2.9 Areas to be improve...17

CHAPTER - 1CHAPTER - 1

CHAPTER - 2

CHAPTER - 3


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FINDINGS

3.1 Frequency analysis18-27

3.2 Cross-tabs analysis28-31

RECOMMENDATION CONCLUSION

Recommendation32

Conclusion..33

APPENDIX & BIBLIOGRAPHY

Appendix34-38Bibliography.39

CHAPTER - 4

CHAPTER - 5


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1.0 Introduction

Consumer behavior means the behavior that consumers display in searching for

purchasing, using, evaluating, and disposing of products, services, and ideas. Consumer

behavior focuses on how individuals make decisions to spend their valuable resources,

that means what they buy, why they buy, when they buy, where they buy, and how often

they buy the products

Consumers are like asset for any company. Now-a-days every company tries to satisfied

their customers through their products and earn profit. But understanding consumer

behavior is very tough for the companies. It is very hard to find out whether the

customers are fully satisfied or not. The behavior of consumers changes over time and

whenever there is new or different products in the market consumers may changes their

behavior toward existing products.


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If any company wants to keep their customers for long time and make them loyal to their

products every company have to understand their customers behavior. It is very

important to understand the behavior of customers and then providing the products or

services according to the customers need and wants.

As it is an important issue, so I have decided to do research on passenger car consumers

behavior towards tyre. For that I have conducted a research on the customers of

passenger car owners.

1.1 Origin of the Report

This report has been made as the course requirement of Internship in BBA course. The

topic for this report has been chosen by my both supervisors, organizations supervisor

Mr. Mahmudul Hassan, Product manger of Tyre, and institutional supervisor Mr. Habib

Anwar Pasha, Lecturer, Faculty of Business Administration. This report contains the

consumers reactions toward tyre they use, and their satisfaction level about the product.

1.2 Problem Statement and Justification

The behavior of passenger car owner in purchasing tyre is unknown. The behavior of

passenger car owner in purchasing tyre is unknown because there are many branded tyre

in the market and different consumers prefer different tyre for their cars.


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2.0 Rafimfafrooz

With a country-wide distribution network of 173 Dealers, 275 Retailers and 101

Lubricant Dealers, Rahimafrooz Distribution Limited (RDL) is the foremost consumer

facing SBU of the Group that carries more than ten national and international brands.

RDL is the clear leader in its automotive after market and emergency power product

categories.

2.1 History of the company


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The Rahimafrooz journey dates back to the early fifties when Late Mr. A C Abdur Rahim

founded a small trading company and paved the way for making of one of todays

leading Bangladeshi business conglomerates. Over the decades, Rahimafrooz has grown

in size, scale, and diversity. The Group today has seven Operating Companies (SBUs),three other business ventures, and a non-profit social enterprise. As of 2007, the Group

currently employs more than two thousand people directly and a further twenty thousand

indirectly as suppliers, contractors, dealers, and retailers.

The major milestones in Rahimafrooz history can be summarized as below:

Incorporated in 1954 by late Mr. A.C. Abdur Rahim

Distributorship of Lucas battery in 1959

Exclusive distributorship of Dunlop tyre in 1978

Acquisition of Bangladesh operation of Lucas UK in 1980

First producer of industrial battery in 1985

Pioneering solar power in collaboration with BP in 1985

First ever battery export to Singapore in 1992

Launched Rahimafrooz IPS in 1993

Acquisition of Yuasa Batteries (Bangladesh) Ltd. in 1994

Attained ISO 9002 certification for RBL operations in 1997

First India office opened in Ahmedabad in 2000

Awarded Bangladesh Enterprise of the Year in 2001

Attained ISO 14001:1996 for RBL operations

Launched Agora the first ever retail chain in 2001

Launched Rahimafrooz Energy Service in 2002 promoting distributed power

Established Rahimafrooz CNG ltd. in 2003


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Awarded National Export Trophy in 2003

Metro net Bangladesh, a fiber optic based digital solution provider for in 2004

Received McGraw-Hill Platt Global Energy Award for Renewable Energy in 2004

Received the Ashden Award for Sustainable Energy in 2006

The Group celebrated its 50th anniversary on April 15, 2004

Established Rahimafrooz Globate Limited and Rahimafrooz Accumulator limited

in 2009.

2.2 Rafimfafrooz Distribution Limited

With a country-wide distribution network of 173 Dealers, 275 Retailers and 101

Lubricant Dealers, Rahimafrooz Distribution Limited (RDL) is the foremost consumer

facing SBU of the Group that carries more than ten national and international brands.

RDL is the clear leader in its automotive market.

2.2.1 RDL Portfolios

RDLs portfolio consists of battery, IPS, UPS, tyre, etc. The portfolio is like below:


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2.3 Organizational Structure

The organogram of Rahimafrooz for marketing tyre is like below:

2.4 Vision, Values, Aspiration, Quality Policy

2.4.1 Vision

The vision of RDL is To be the most admired and trusted organization through

excelling in everything we do following ethical business practices, and adding value to

stake holders.

Customer Service

Ex

(AGR)

Market Dev

Officer


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2.4.2 Values

The values of Rahimafrooz are like below:

Integrity in all our dealings: Rahimafrooz never compromises on ethical business

practices. They set high standards of ethics and moral virtues for themselves. They

believe their commitment to integrity should never be compromised for the sake of

business goals or anything.

Excellence in everything we do: Their pursuit for business success has thrived on

a very simple yet powerful philosophy quality comes first! They have

maintained highest quality standards in their operations, processes, products and

brands, always keeping in mind that they cant afford to be anything less than the

best. They strive for quality excellence.

Total commitment to customer satisfaction: It takes months, years, in some cases

decades, to win a loyal customer. But it takes only a few seconds to lose one.

Rahimafrooz thrives on winning loyal customers through best quality products and

service. Most importantly, it believes in keeping its customers loyal though

sustained quality, amazing service performance and superior customer relations.

Thinking ahead and taking new initiatives: They have always tried to stay ahead

in terms of thinking, decision making and competition. Their product

development, business investment, people processes, technology utilization etc.

stand testimony to this fact. They believe in being creative, innovative, and

intelligent risk takers.

2.4.3 Aspiration

The aspiration of Rahimafrooz is We want to be the most admired and trusted

organization through excelling in everything we do, following ethical business practices

and adding value to our stakeholders


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2.4.4 Quality policy

In case of quality policy Rahimafrooz believes We are totally committed to customer

delight through operational excellence, innovation and continual improvement of quality

2.5 Product/ Brand of the company

At Rahimafrooze the following product/ brands are available in case of tyre:

Rahimafrooz is the sole distributor for Dunlop tyres inBangladesh. Distributor for Dunlop is offering with wide size range covering

Off the Road, Truck Bus, Light Truck, Passenger Car, and Motor Cycles.

Rahimafrooz also provides technical assistance to motorists for appropriate

tyre application, care, and maintenance.


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RZ tyre a premium quality cost effective tyre was launched in

2000. This heavy duty Truck and Bus tyre is specially designed for the rough

roads. Since its introduction it has become the preferred choice of many

Institutional, Corporate, Local, and Multinational Companies.

Other brands: The branded tyre that are distribute by Rahimafrooz are:


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2.5.1 Segmentation of Tyre

The tyre categories of Rahimafrooz are segmented as below:

TB > Truck Bus LT > Light Truck

PC > Passenger Car AR > Auto Rickshaw

MC > Motorcycles s

2.5.2 Country of Origin

MC

AR PC

LT

TB

TYRE


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The countries from where Rahimafrooz brings tyre in our country are as follows:

DJ -DUNLOP JAPAN

DN -DUNLOP INDONESIA

DI -DUNLOP INDIA

II -INDUS INDIA

DR -D MASTER THAILAND

RK -RUBBER KING

DK -DUNLOP TUBE KOREA

2.5.3 Claim SettlementIf customers have any claim over the product of Rahimafrooz then the organization takes

the whole procedure as below table or chart:

2.6 Market: national/international

Rahimafrooz operates in three broad segments automotive after market, power and

energy, and retail. While the Group activities are coordinated from the Rahimafrooz

Corporate Office (RACO), it has more than eight Strategic Business Units (SBUs), three

other business ventures, and a not-for-profit social enterprise. These are as follows:

CLAIM SETTLEMENTCLAIM SETTLEMENT

CUSTOMERS

DEALER / RETAIL UNITS

CUSTOMER SERVICE UNITS

ACCEPT

REJECT

REBETE /COMMERCIAL CLAIM

BACK TOCUSTOMERS


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Rahimafrooz Bangladesh Ltd. Company {Parent Company}

Rahimafrooz Batteries Ltd.

Rahimafrooz Distribution Ltd.

Rahimafrooz Energy Service Ltd.

Rahimfrooz Superstore

Rahimafrooz CNG Ltd.

Rahimafrooz Accumulator Ltd.

Rahimafrooz Globate Ltd.

Rahimafrooz Renewable Energy Ltd.

Excel Resources Ltd.

RDL has strengthened their market leadership at home while reaching out to international

markets. Ranging from automotive after market products, energy and power solutions, to

a world class retail chain the team at Rahimafrooz is committed to ensuring best in

class quality standards and living the Groups four core values Integrity, Excellence,

Customer Delight and Innovation.

Rahimafrooz has been a partner in the development journey of this nation for more than

fifty years now. They set their highest standards in responsible corporate behavior and

our passion for success is aligned with the development journey of Bangladesh. We, at

Rahimafrooz as an organization, are committed to playing a leading role in driving

growth, prosperity, ethical values and social responsibility. Rahimafrooz Group will

continue to serve its customers through unparallel quality excellence and service

superiority.


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2.7 Performance over the Years

Here we will see the market composition of passenger car (PC) tyre, category

performance of PC tyre by dealer, retailer, and institute

2.7.1 Market Composition of PC tyre

The market composition for passenger car tyre in 2009 was like below chart:

Market Composition of PC Tyre

8300, 39%

4400, 21%

3700, 17%

3500, 16%1400, 7% Indoneshia

Japan

China

Taiwan

India

2.7.2 Market composition of TB tyre

The market composition for Truck Bus tyre in 2009 was like below chart:

TB Market Composition

24%

76%

TBR

TBX


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2.7.3 Market composition of LT tyre

The market composition for Light Truck tyre in 2009 was like below chart:

LT Larket Composition

8%

92%

LTR

LTX

2.7.4 Market composition of AR tyre

The market composition for Auto Rickshaw tyre in 2009 was like below chart:

AR Market Composition

2%

34%

64%

Others

Bangladesh

India

2.8 SWOT Analysis

Here are the SWOT analysis that means strength, weakness, opportunity, and threat of

RDL:

2.8.1 Strength: The strength of Rahimafrooz Distribution is:

Branded company

Quality product


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Doing business for over the last 50 years in Bangladesh

Market growth in all segments

Special discount on over stock items

Local manufacturing of RZ tyre

2.8.2 Weakness: The weaknesses of Rahimafrooz Distribution are:

Positioning problem in case of RZ tyre

Non availability of FMCG sizes in case of Indus tyre

Non active key dealers

Dissatisfaction on given incentives against 2008- 09 purchase

Impact of new dealers incentive policy or cash purchase

2.8.3 Opportunity: The opportunity of Rahimafrooz Distribution is:

They are planning for going to make the company multinational company in

future.

2.8.4 Threat: The threats of Rahimafrooz Distribution are:

Multi brand management

Ensure growth in PC segment

Competition with channel members

Dealer activation

2.9 Areas to be Improve

There are certain areas where RDL needs some improvement like,


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The prices of Dunlop tyre are too high, only high class people can afford it.

Moreover their service needs to improve, they should have an measurement

technique for measure the satisfaction, level of customers

They should maintain more good relation with their dealers, almost all the dealers

are not highly satisfied with the service they give to them.


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3.0 Introduction

As we already know that there are different branded tyres in the market and different

consumers prefer different tyre for their car. There are many other things that influence a

consumer to purchase a tyre like price, promotional activities, discounts or credits

facility, place of purchase, dealer, retailer, quality of the product etc. So it is very

important for a tyre company to know the factors that affect the customers to buy a tyre.

3.1 Problem Statement

The behavior of passenger car owner in purchasing tyre is unknown.

3.2Justification

The behavior of passenger car owner in purchasing tyre is unknown because there are

many branded tyre in the market and different consumers prefer different tyre for their

cars.

3.3 Literature Review

Relationship marketing

Relationship marketing emerged in the 1980s as an alternative to the prevailing view of

marketing as a series of transactions, because it was recognised that many exchanges,particularly in the service industry, were relational by nature (Berry, 1983; Dwyeret al., 1987;

Grnroos, 1994; Gummesson, 1994; Sheth and Parvatiyar, 2000). Within a retail banking setting,


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Walsh et al. (2004, p. 469) define RM as the activities carried out by banks in order to attract,

interact with, and retain more profitable or high net-worth customers.

Relationship marketing thus aims at increasing customer profitability while providing betterservices for customers. Several studies have empirically demonstrated a positive association

between RM strategies and business performance (e.g. Naidu et al., 1999; Palmatier and

Gopalakrishna, 2005). Within a banking context, Keltner (1995) found that German banks, in5

contrast to American banks, managed to maintain a stable market position during the 1980s and

early 1990s as a consequence of relationship oriented banking strategies.RM will not automatically lead to stronger customer relationships; rather, customers will exhibit

different levels of relationship closeness and strength (Berry, 1995; Liljander and Strandvik,

1995). In order to be attractive, RM strategies should enhance customers perceived benefits of

engaging in relationships (OMalley and Tynan, 2000). However, all customers do not want toengage in relationships and, in fact, it has been suggested that close customer relationships in

banking are rare, and that they are being further weakened by the increase in self-service

technologies (OLoughlin et al., 2004). An alternative is to look upon new technologies as

relationship facilitators (Sweeney and Morrison, 2004) and to use them strategically in customerrelationship management (Payne and Frow, 2005).

One of the basic tenets of relationship marketing is customer orientation. Already the SOCO(selling orientation-customer orientation) scale, developed by Saxe and Weitz (1982), was based

on the premise that customer oriented sales people strive to increase customers long-term

satisfaction. Selling oriented sales people were considered to prioritise the achievement of animmediate sale at the expense of customer needs. Subsequent research has shown that the degree

of customer orientation indeed has an effect on a firms relationships with its customers (Clark,

1997; Yavas et al., 2004). In a study of financial services, Bejou et al. (1998) found that

customer oriented employees had a positive impact, while sales oriented employees had anegative impact, on customers relationship satisfaction.

To our knowledge, there are no previous studies on the effect of RM activities on customer

loyalty in different profitability segments. Before describing profitability segmentation, we willbriefly review two desired relationship outcomes, customer relationship satisfaction and loyalty.

6

Customer relationship satisfactionCustomer evaluation measures should reflect the type of exchange that is being evaluated, i.e.

transactional or relational. Often used measures in a relationship context are relationship quality

(e.g. Bejou et al., 1996; Crosby et al., 1990; Lang and Colgate, 2003), and relationship

satisfaction (e.g. Abdul-Muhmin, 2002; Rosen and Surprenant, 1998). A positive relationshipbetween service quality and satisfaction has been well established in the banking sector (e.g.

Ennew and Binks, 1999; Jamal and Naser, 2002; Hooi Ting, 2004). However, the constructs are

highly correlated and sometimes difficult to separate in transactional interactions (Bitner andHubbert, 1994), but even more so from a relationship perspective (Dabholkar, 1995). In long-

term relationships perceived quality and satisfaction are likely to merge into an overall

evaluation of relationship satisfaction.Customer loyalty

Customer loyalty is defined as a deeply held commitment to rebuy or repatronize a preferred

product/service consistently in the future, thereby causing repetitive same-brand or same brand-


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set purchasing, despite situational influences and marketing efforts having the potential to cause

switching behaviour. (Oliver, 1999, p. 34).

As illustrated in the definition above, loyalty has both an attitudinal and behavioural dimension(Dick and Basu, 1994). It is assumed that customers who are behaviourally loyal to a firm

display more favourable attitudes towards the firm, in comparison to competitors. However, in

some cases behavioural loyalty does not necessarily reflect attitudinal loyalty, since there mightexist other factors that prevent customers from defecting (Aldlaigan and Buttle, 2005; Liljander

and Roos, 2002; Reinartz and Kumar, 2002).

Customer satisfaction and loyalty are highly correlated (Athanassopoulos et al., 2001; Hallowell,1996; Silvestro and Cross, 2000), but form two distinct constructs (Bennett and Rundle-Thiele,

2004; Oliver, 1999). Customer satisfaction with a bank relationship is a good

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basis for loyalty (Bloemer et al., 1998; Pont and McQuilken, 2005), although it does notguarantee it, because even satisfied customers switch banks (Nordman, 2004). One important

reason for switching is pricing (Colgate and Hedge, 2001; Ennew and Binks, 1999). Hence,

banks have launched customer loyalty programmes that provide economic incentives. Although

the effectiveness of loyalty programmes has been questioned (e.g. Dowling and Uncles, 1997;Sharp and Sharp, 1997; Stauss et al., 2005), research has shown that they have a significant,

positive impact on customer retention, service usage, and/or share of customer purchases (e.g.Bolton et al., 2000; Verhoef, 2003).

The link between loyalty and profitability

Numerous studies have shown positive links between loyalty and firm profitability (Anderson etal., 1994; Hallowell, 1996; Reichheld, 1996; Silvestro and Cross, 2000). Nonetheless, not all

loyal customers are profitable (Storbacka, 1994; 1997). According to Reinartz and Kumar

(2002), the overall link between loyalty and profitability in many industries is questionable for

two reasons: 1) a relatively large percentage of long-term customers are only marginallyprofitable, and 2) a relatively large percentage of short-term customers are highly profitable. It is

noteworthy, however, that Reinartz and Kumars (2002) findings from four industries (high

technology, postal service, retail food and direct brokerage) still indicate that a larger proportionof the long-term customers than of the short-term customers exhibit high profitability, and a

larger proportion of the high-profitability customers than of the low-profitability customers are

long-term customers. Thus, the theory of an overall positive connection between customerloyalty and profitability cannot be rejected.

As noted by Anderson and Mittal (2000), customer relationship profitability arises through the

acquisition and retention of high quality customers with low maintenance costs and high

revenue. In the context of retail banking, Storbacka (1994) describes relationship costs ascomprising direct variable costs, such as transaction related costs and costs related to specific

8

services, in addition to overhead costs that may or may not be attributable to particularrelationships. Relationship revenue, meanwhile, is split into volume-based revenue that is

derived from interest margins, and fee-based revenue. Customers patronage concentration

(Storbacka, 1994), or share-of-wallet (Keiningham et al., 2003; Perkins-Munn et al., 2005), andpricing policies are important aspects of relationship revenue in banking. Since a large part of

banks revenues are received from interest margins, customers volume of business has a major

impact on profitability. If relationship costs are minimized and relationship revenue is


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maximized over time, long-term customers should generate greater profitability than short-term

customers.


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3.4 Objectives of the Report

There are two types of objective behind conducting this report. These are as

follows:

3.4.1 Broad objective:

The broad objective of this report is to find out the behavior of passenger car

owner in purchasing tyre.

3.4.2 Specific objectives:

The specific objectives for this report are as follows:

To find out the brand that consumers prefer for their tyre.

To find out the reason for purchasing the brand.

To find out from where they would like to purchase the tyre.

To find out the reasons behind purchasing from the place.

To find out the advertisement media that helps the customers most.

3.5 Methodology

To complete this report successfully I have to follow some methods. These are

as follows:

3.5.1 Research Type: This research is descriptive in nature

3.5.2 Sampling Plan: The sampling for this research is as follows:

Sampling Frame: The research was conducted in different parts of

Dhaka city.

Sampling Element: The private car owners living in Dhaka city were

selected as sampling element.


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Sampling Procedure: For the research I have used non probability

Convenience sampling technique.

Sample Size:My sample size for this research is 100.

3.6 Sources of Data

Data were collected from two sources. They are as follows:

Primary data: Primary data were collected directly from the customers

of tyre users. I have asked some questioned to them and use their

responses as primary data.

Secondary data: The secondary data were, companys Quarterly

Business Review Report, Tyre Marketing Report, information from

internet etc.

3.7 Data analysis

For data analysis I have done frequency analysis, cross tabs analysis with the

data I have collected from the respondents.

3.8 Findings

After completing the research I have found the following things about

Rahimafrooz tyre and things related to it. In this section I have described the

branded tyre available at Rahimafrooz, its marketing organaogram,

segmentation of tyre, country of origin, promotion, claim settlement, quarterly

business review of 2009 and finally the analysis of the questionnaire.


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3.8.1 Frequency Analysis

1. Mode of transportation

Table 1:Mode of transportation

Frequency Percent Valid Percent Cumulative Percent

Valid Private car 100 100.0 100.0 100.0

Which media do you use for your transportati

100.0%

Private c ar

Analysis:


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From the frequency table, statistics table, and from the graph we can see that all

the 100 respondents use private car for their transportation. As this topic is

based on tyre purchasing behavior of passenger car customers, normally all the

respondent are chosen who use the private cars.

2. Brand Preference for tyre

Table 2: Brand Preference for tyre

Frequency Percent Valid PercentCumulative

Percent

Valid Dunlop 43 43.0 43.0 43.0

Bridgestone 22 22.0 22.0 65.0

Kenda 10 10.0 10.0 75.0

Yokohama 16 16.0 16.0 91.0

MRF 8 8.0 8.0 99.0

Others 1 1.0 1.0 100.0

Total 100 100.0 100.0


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Which tyre brand you prefer for your car?

1.0%

8.0%

16.0%

10.0%

22.0%

43.0%

Others

MRF

Yokohama

Kenda

Bridgestone

Dunlop

Analysis:

From the above table and graph we can see most of the respondents prefer

Dunlop tyre for their car. Among the 100 respondents 43 respondents used

Dunlop, 22 respondents use Bridgestone and others use Yokohama, Kenda, etc.

3. Reason for purchasing the brand

Table 3: Reason for purchasing the brand

Frequency Percent Valid Percent CumulativePercent

ValidQualityproduct

54 54.0 54.5 54.5

Credit facility 5 5.0 5.1 59.6

Brand image 18 18.0 18.2 77.8

Country oforigin

6 6.0 6.1 83.8

Pattern ofproduct

5 5.0 5.1 88.9

Companyimage

11 11.0 11.1 100.0

Total 99 99.0 100.0Missing System 1 1.0


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Total 100 100.0

What is the reason for purchasong the brand?

1.0%

11.0%

5.0%

6.0%

18.0%

5.0%

54.0%

Missing

Company image

Pattern of product

Country of origin

Brand image

Credit facility

Quality product

Analysis:

Here, we can see the respondents motive or reason behind purchasing the

brand is quality product. According to 54 respondents Dunlop is a quality

product thats why they prefer it and 18 respondents purchase it because of

brand image. Other respondents purchase the brand because of company image,

country of origin etc.

4. Decision Maker in purchasing tyre

Table 4: Decision Maker in purchasing tyre

Frequency Percent Valid Percent CumulativePercent

ValidHead of the

family39 39.0 39.4 39.4

children 1 1.0 1.0 40.4

Drivers 14 14.0 14.1 54.5

My self 45 45.0 45.5 100.0

Total 99 99.0 100.0

Missing System 1 1.0

Total 100 100.0


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Who takes the decision for purchasing tyre?

1.0%

45.0%

14.0%

1.0%

39.0%

Missing

My self

Drivers

childrens

Head of the family

Analysis:

From the frequency table and statistics table we can see that most of the

respondents decisions for purchasing tyre are made by the owner of the car.

Then, in second place we can see that head of the family took the decision for

purchasing the branded tyre and the percentage of decision making by drivers

are only 14%.

5. Influencer in buying the tyre

Table 5: Influencer in buying the tyre

Frequency Percent Valid Percent

Cumulative

Percent

Valid Relatives 41 41.0 41.0 41.0

Friends 34 34.0 34.0 75.0

Colleagues 20 20.0 20.0 95.0

Others 5 5.0 5.0 100.0

Total 100 100.0 100.0


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By whom you are influenced to buy the product?

5.0%

20.0%

34.0%

41.0%

Others

Collegues

Friends

Relatives

Analysis:

Here we can see that in case of tyre purchasing respondents are mostly

influenced by their relatives and friends. Among 100 respondents 41%

respondents are influenced by their relatives and 34% are influenced by their

friends.

6. Liking of the place to buy

Table 6: Liking for the place to buy


Percent

Valid Dealer 45 45.0 45.5 45.5

Retailer 13 13.0 13.1 58.6

Companyoutlet

39 39.0 39.4 98.0

Corporateagreement

2 2.0 2.0 100.0

Total 99 99.0 100.0


Total 100 100.0


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From where do you like to purchase the tyre?

1.0%

2.0%

39.0%

13.0%

45.0%

Missing

Corporate agreement

Company outlet

Retailer

Dealer

Analysis:

From the frequency and statistics table we can see that 45% respondents prefer

to but the tyre from the dealer and 39% prefer to buy from company outlet.

Very few percentages prefer retailers in case of tyrepurchasing.

7. Reason behind purchasing tyre from that place

Table 7: Reason behind purchasing tyre from that place


Percent

ValidCredit

facility/Discount40 40.0 40.4 40.4

Fixed price 28 28.0 28.3 68.7

Productavailability

22 22.0 22.2 90.9

Negotiableprice

8 8.0 8.1 99.0

Others 1 1.0 1.0 100.0

Total 99 99.0 100.0Missing System 1 1.0


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Total 100 100.0

what is the reason behind purchasing from that place

1.0%

1.0%

8.0%

22.0%

28.0%

40.0%

Missing

Others

Negotiable price

Product availability

Fixed price

Credit fac ility/Disc

Analysis:

Here we can see that the respondents prefer dealers because of credit facility

and the respondents who prefer company outlet go there because of fixed price

of tyre and product availability.

8. First brand come in to your mind

Frequency table 8: TOM

Frequency PercentValid

PercentCumulative

Percent

Valid Dunlop 42 42.0 42.0 42.0

Bridgestone

24 24.0 24.0 66.0

Kenda 7 7.0 7.0 73.0

MRF 16 16.0 16.0 89.0

Yokohama 11 11.0 11.0 100.0

Total 100 100.0 100.0


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brand comes first into your mind when you think abo

11.0%

16.0%

7.0%

24.0%

42.0%

Yokohama

MRF

Kenda

Bridgestone

Dunlop

Analysis:

From the graph, frequency and statistics table we can see that in case of tyre the

mind share of respondents are Dunlop. 42%respondents when think of tyre

Dunlop comes in their mind first. And in case of Bridgestone the percentage is

24%.

9. Advertisement media to know about the brand

Frequency table: 9 Advertisement media to know about the brand


PercentCumulative

Percent

ValidTelevision

ad22 22.0 22.2 22.2

Printmedia

59 59.0 59.6 81.8

Billboardad

10 10.0 10.1 91.9

Others 8 8.0 8.1 100.0

Total 99 99.0 100.0


Total 100 100.0


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h advertisement media helps you to know about the b

1.0%

8.0%

10.0%

59.0%

22.0%

Missing

Others

Billboard ad

Print media

Television ad

Analysis:

Here we can see that print media helps most to give information about tyre to

customers. 59% respondents believe that print media helps them to most to get

information about tyre.

10. Evaluation of Dunlop as tyre

Frequency table: 10 Evaluation of Dunlop as tyre


PercentCumulative

Percent

Valid Excellent 42 42.0 42.0 42.0

Very good 30 30.0 30.0 72.0

Good 21 21.0 21.0 93.0

Average 6 6.0 6.0 99.0

5.00 1 1.0 1.0 100.0

Total 100 100.0 100.0


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How would you rate Dunlop as tyre?

1.0%

6.0%

21.0%

30.0%

42.0%

5.00

Average

Good

Very good

Excellent

Analysis:

From the tables above we can see that 42% respondents rate Dunlop as

excellent and 30% rate Dunlop as very well. So we can say that Dunlop is an

excellent tyre.

3.8.2 Cross tabulation Analysis

Figure 1: Customers Preferences for Brand & Reasons for buying


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Others

MRF

Yokohama

Kenda

Bridgestone

Dunlop

Count

30

20

10

0

What is the reason

Quality product

Credit facility

Brand image

Country of origin

Pattern of product

Company image


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Others

MRF

Yokohama

Kenda

Bridgestone

Dunlop

Co

unt

30

20

10

0

What is the reason f

Quality product

Credit fac ility

Brand image

Country of origin

Pattern of product

Company image

Analysis:

The chart shows the cross tabulation between brand and the reason for

purchasing the particular brand. We can see that customers first reason behind

purchasing Dunlop is Quality, second comes its Brand image, and third comes

Dunlops Company image, and fourth comes the pattern of the product.

In case ofBridgestone brand the first reason for purchasing it is it Quality,

second reason is the brand image, third reason is pattern of the product and

fourth reason is country of origin. Customers reason behind purchasing theKenda brand is Quality product, Credit facility, Brand image and Company

image.

The customers who purchase Yokohama believe that it is a quality product.

The second thing that affects their purchase decision is its brand image and the

third reason is credit facility and country of origin. In case of MRF the reasons

is quality and country of origin.


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Figure 2: Reasons of purchasing the brand and place of purchase

What is the reason for purchasing the brand?

Com

panyimage

Patternofproduct

Countryoforigin

Brandimage

Creditfacility

Qualityproduct

Count

30

20

10

0

From where do you li

Dealer

Retailer

Company outlet

Corporate agreement

Analysis:

Here we can see the cross tabulation between the place from where the

customers would like to purchase their preferred brand and why. The graph

shows us that the customers who preferred quality products they purchased

from dealers, secondly they prefer company outlet and thirdly they prefer

retailers. The customers who wants credit facility they go for dealer and

company outlet, and secondly to retailer. Those who purchase forbrand image

they prefer dealer, secondly company outlet, and thirdly retailers.

We can also see that those who prefercountry of origin they only purchased

from company outlet, and those who prefer pattern of the product they

purchased from company outlet and corporate agreement. The customers who

purchase the brand because ofcompany image they prefer company outlet for

purchase.


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Figure 3: Preferred place for purchasing tyre and media that helps to purchase

from that place.

From where do you like to purchase the tyre?

Corporate agreement

Company outlet

Retailer

Dealer

Count

30

20

10

0

Which advertisement

Television ad

Print media

Billboard ad

Others

Analysis:

The graph sows us the cross tabs question between the media that giveinformation about and the place from where the customers like to purchase. We

can see that the print media helps the customers most to purchase the product

from dealers. Second comes the TV ad and third comes others (oral marketing)

which give the customers information about the product, Billboard ad also

helps customer to purchase from dealers.

In case ofretailers the media that helps most is print media, secondly TV ad

and thirdly billboard. Print media helps most in case ofcompany outlet, TV;

billboard also helps to give information about the product. But in case of

corporate agreement only print media gives information to the customers.

Students Preference Criteria who are in Bengali medium


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N Mean

Career Development 21 4.48

High quality of education

abroad

21 4.43

Prestige and ranking of

university

21 4.38

To generate ideas for future 21 4.24

Be out of comfort

zone/challenge myself

21 4.24

Students Preference Criteria who are in English medium

Descriptive Statistics

N Mean


Make more marketable to future

employers29 4.45

Help professionally in a more

globalized world29 4.34

High quality of education abroad 29 4.24

Opens horizons and opportunities 29 4.17

Students Preference Criteria on the basis of Gender

( Female)


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Table 14: Students Preference Criteria on the

basis of Gender

N Mean


To have a more global view

of the world

31 4.39

Be out of comfort


31 4.35


abroad

31 4.29


university

31 4.19


Make more marketable to

future employers

31 4.16


globalized world

31 4.03

Recognition of qualification 31 4.03

Skills helpful for future

jobs/rsum/graduate school

31 4.00

Better equipped to handlechange

31 4.00

Higher status associated with

studying

31 3.94

Opens horizons and

opportunities

31 3.90

Inability to get a place in a

course you wanted to study

at home.

31 3.90

For a multi-cultural

experience

31 3.90

Highly competitive entry

requirements in home

country

31 3.87

Unavailability of course at

home

31 3.87

Chance to live in a foreign

country

31 3.84

For migration purposes 31 3.81

Chance to be independent 31 3.68


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Students Preference Criteria on the basis of Gender (Male)


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N Mean



future employers

19 4.58


abroad

19 4.37


globalized world

19 4.37


Opens horizons and

opportunities

19 4.32


studying

19 4.26



19 4.21


university

19 4.16

Better equipped to handle

change

19 4.11




of the world

19 3.84


experience

19 3.79



country

19 3.58

Be out of comfort


19 3.53


home

19 3.47


country

19 3.32




at home.

19 2.63

Valid N (listwise) 19


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Students Preference Criteria on the basis Parents

Occupation (Businessman)


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Students Preference Criteria on the basis Parents

Occupation (Businessman)


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N Mean


Be out of comfort


23 4.52


of the world

23 4.52



abroad

23 4.35


experience

23 4.26




23 4.22


future employers

23 4.17


change

23 4.13


studying

23 4.13


home

23 4.09


globalized world

23 4.09



country

23 4.09

Opens horizons and

opportunities

23 4.04


university

23 4.04



at home.

23 3.96



country

23 3.78


Valid N (listwise) 23


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Summary of Findings:


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N Mean



future employers

50 4.32


abroad

50 4.32


of the world

50 4.18


university

50 4.18


globalized world

50 4.16





50 4.08

Opens horizons and

opportunities

50 4.06


studying

50 4.06

Be out of comfort


50 4.04


change

50 4.04


experience

50 3.86




country

50 3.76


home

50 3.72


country

50 3.64




at home.

50 3.42


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Recommendations

As Rahimafrooz is one of the reputed company in Bangladesh, there are very

little to recommend about there product or services. Though Rahimafrooz

provides quality product the prices are too high. Their only manufacturing tyre

is RZ tyre; its price is relatively low. If Rahimafrooz come forward to

manufacture its products then the price will be little bit low and all types of

consumers may be able to purchase the product. Another thing is consumers

mainly get information from print media, but now-a-days commercial TV Adand radio ad has became very popular, so they can go for commercial TV ad

and radio ad. So it will be easy for the consumers to get information from TV

and radio. Last recommendation for Rahimafrooz will be extending the

guarantee period of tyre. In present there are 1 year unwritten guarantee for tyre

but most customers think that this guarantee period should be extend more.


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Conclusion

After analysis the whole report I can conclude that as the aspiration statement

of Rahimafrooz reads, We want to be the most admired and trusted

organization, by excelling in everything we do, following ethical business

practices, and adding value to stakeholders. And we want to achieve all of

these while being firmly committed to our social responsibilities Rahimafrooz

Distribution Ltd., with a proud history of more than 50 years, strongly believes

in the principle of contributing back to the community where They operate.

They strive to add value to the society, its economy, and environment through

efforts.

As a result the consumers behavior towards Rahimafrooz is very positive and

their satisfaction level is very high. The consumers of passenger car tyre are

preferred Rahimafrooz tyre most. The consumers believe that Rahimafrooz

provides high quality product, but prices are high in case of Dunlop tyre.

Consumers of passenger car tyre mainly get information from the print media.

So, at the end I can conclude that Rahimafrooz is one of the finest companies in

Bangladesh. They provide high quality of product and consumers are satisfied

with Rahimafrooz products they bought, especially in tyre segment. Consumers

are satisfied by Rahimafrooz tyre category.


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4.0 Introduction

As Rahimafrooz is one of the finest companies of Bangladesh, I am fortunate to

o complete my internee in such a big organization. Through my internship

period I have learned so many things from the organization which I have not

learned before. As Rahimafrooze has huge SBUs I was placed in Rahimafrooz

Distribution Ltd. to complete my internship. A brief description is given below

about my internship experience:

4.1 Duties and responsibilities within the organization

As I was an intern my duties and responsibilities was not so serious type. I had

to go the office twice or thrice a week. Sometimes I had watched the working

process of lubricant sector, sometimes in tyre sector, and some times in battery

sector. Mainly my responsibility was to learn work.

4.2 Reporting structure

The topic and guideline for preparing my report was given by the Product

Manager of tyre Mr. Mahmudul Hassan. He was my super visor for the entire

internship period.

4.3 Department or divisionAs I am a student of BBA and my major was in marketing I was placed in

marketing department of Rahimafrooz Distribution Ltd.

4.4 Contribution to the organization

As an intern I have little to contribute for the organization. My topic was

research based so I had to conduct a research which they will use in their tyre

department in future.


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4.5 The job was related to my major area of study

I have chosen the major area for my BBA in marketing. In marketing major

there was a course named Consumer Behavior and the topic of my internship

is based on that subject that is consumer behavior in purchasing tyre of

passenger car owner. So the topic is matched with my major subject.


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References

1. Consumer Behavior

Shiffman, G Leon

Kanuk, Lazar Leslie

2. www.rahimafrooz.com

3. Quarterly Business Review 2009

Rahimafrooz Distribution Ltd.s
http://www.rahimafrooz.com/http://www.rahimafrooz.com/


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Appendix 1. Table of Mean, Median and Standard Deviation

1.Which media do you use for your transportation?Mean 1.00

Median 1.00

Mode 1.00

Standard Deviation 0.00

2. Which tyre brand you prefer for your car?Mean 2.62.00

Median 2.00

Mode 1.00


3. What is the reason for purchasing the brand?Mean 2.35

Median 1.00

Mode 1.00


4. Who takes the decision to purchasing the tyre?Mean 3.25

Median 4.00

Mode 5.00Standard Deviation 1.87

5. By whom you are influenced to buy the product?Mean 1.89

Median 2.00

Mode 1.00


6. From where do you like to purchase the tyre?

Mean 1.97Median 2.00


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Mode 1.00


7. What is the reason behind purchasing from that place?

Mean 2.01

Median 2.00

Mode 1.00


8. Which brand comes first into your mind when you think about tyre?Mean 2.64

Median 2.00

Mode 1.00


9. Which advertisement media helps you to know about the brand?Mean 2.81

Median 3.00

Mode 3.00


10. How would you rate Dunlop as tyre?Mean 1.94

Median 2.00

Mode 1.00



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Appendix 2. Questionnaire

Dear Respondent,

I am a student of BBA (Major in Marketing) ofEastern University and now doing my

internship at Rahimafrooz Distribution Ltd. As a part of my internship I have to

prepare a report on the following topic Tyre Purchasing Behavior of customers; A

study on passenger car So I am assigned by the company to do a research on

purchasing behavior of tyre in corporate sector. For the educational purpose I need

some information from you which will help me in preparing the internship report. I

will be grateful if you give me some of your valuable time.

Thank you

1. Name of the

respondent:

2. Profession:

3.Contact

Details:

Phone:

Email:

Address:

4. Which media do you use for your transportation?

I) Private Car

II) Auto rickshaw

III) Bus

IV) Others. (Please specify)

5. Which brand you branded tyre you prefer for your car?


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I) Dunlop

II) Bridgestone

III) Indus

IV) Kenda

V) Yokohama

VI) MRF

VII) Others.. (Please specify)

6. What is (are) the reason (s) for purchasing the brand?

I) Quality product

II) Credit facility

III) Brand image

IV) Country of origin

V) Pattern of product

VI) Company image

VII) Others. (Please specify

7. Who takes the decision for purchasing tyre?

I) Head of the family

II) Childrens

III) Wife

IV) Drivers

V) Others (Please specify)

8. By whom you are influenced to buy the product? (If any)

I) Relatives

II) Friends

III) Colleagues

IV) Others. (Please specify)

9. From where do you like to purchase the tyre?

I) Dealer

II) Retailer

III) Company outlet

IV) Corporate agreement

V) Others. (Please specify)

10. What is (are) the reason (s) behind purchasing from that place?

I) Credit facility / discounts


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Behavior of Passenger Car Owners in case of Purchasing Tyre- A Case Study on Rahimafrooz Distribution Limited (RDL)

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