Hmt Project Report

A

STUDY PROJECT REPORT

ON

Consumer Behavior

of HMT machine Tools Ltd.

1

PREFACE2

Theoretical knowledge without practical knowledge is of little value. In order to achieve

concrete and positive result along with theoretical concept the exposure of real life situation

existing in corporate is very much needed.

To fulfill this need the management course has a provision for the practical study program. I

thank my institute to provide us such opportunity having training period in our course so that

students can have real felling of industrial life.

My project study is based on Studying the Consumer Behavior of HMT machine Tools Ltd.

The objective of my study is to know the Consumer Preferences, its Loyalty towards the

company, to know the market awareness of consumers.

It was my fortune to get training in very healthy atmosphere. I got ample opportunity to views

the overall working of the evaluation of marketing program of HMT Machine Tools Ltd.

In the coming pages an attempt has been made to present a comprehensive report concerning

different aspects of Consumers Behavior.

Acknowledgement

3

I am extremely grateful to the management of HMT Machine Tools Ltd. for giving me an

opportunity to pursue study at the company.

Which else Company could have given me the better knowledge than the leading Machine

Tool Company in the Nation.

It was really a great valuable period for me. First of all I would like to express my gratitude

towards to Miss Yamini Gupta who helped me a lot in completion of my study.

He was there to support me whenever I needed help at every point of my study. At the outset, I

would take this excellent opportunity to render my sincere gratitude to Mr. Naveen

Dhingra Manager Marketing Devision. It is because of his kind assistance that I was

able to complete this project successfully.

Last but not least I am grateful to all other members of the HMT family who guided me and

provided me all the necessary resources to complete my study without any difficulty and

made my Industrial study an experience memorable and success.

(Rajesh Kumar Sharma)

CONTENT

4

Chapter-1: Company Profile

Chapter-2: Project Profile

Chapter-3: Research Methodology

Chapter-4: Limitations

Chapter-5: Suggestions

Chapter-6: SWOT Analysis

Chapter-7: Conclusions

Chapter-8: Findings and Analysis

Appendix

Bibliography

Schedule

Forms of performance appraisal

5

Chapter-1:

Company Profile

Profile

Hindustan Machine Tools

6

Hindustan Machine Tools is a public sector undertaking of the Government of India. In 1953,

the latter incorporated the machine tool manufacturing company by the name of Hindustan

Machine Tools Limited.

HMT as a brand is popular among the masses as a premium watch making company.

However, since its very inception, HMT Limited is into a lot of other things as well.

Over the years HMT, (as Hindustan Machine Tools is popularly known) has diversified into

watches, tractors , printing machinery, metal forming presses, die casting & plastic processing

machinery, CNC systems and bearings.

HMT has also been successful in absorbing technology in all product groups by collaborating

with recognized manufacturers from all over the world.

Moreover, Hindustan Machine Tools has also evolved through continuous in-house Research

and Development (R & D). Today,

HMT has six subsidiary companies under its supervision namely:

HMT Machine Tools Limited

HMT Watches Limited

HMT Chinar Watches Limited

HMT International Limited

HMT Bearings Limited

Praga Tools Limited As a holding company , HMT Ltd. manages the tractors business

directly and entirely as it does with the 1st four companies of the following list. In case of the

last two, HMT enjoys a holding percentage of 97.25 and 51 respectively.

Besides, Hindustan Machine Tools Limited has 18 manufacturing units. HMT’s tractor business

commenced its operations in 1971 in technical collaboration with M/s Motokov of

Czechoslovakia. HMT started the operation with the manufacture of 25 horse-power tractor at

the manufacturing plant in Pinjore,Haryana.

7

HMT Limited, the pioneer in Machine Tools Industry in India and manufacturers of a

diversified range of products has incorporated “HMT MACHINE TOOLS LIMITED” as its

fully owned subsidiary on 9th August 1999 .

“HMT MACHINE TOOLS LIMITED” (HMT-MTL) is a Multi unit, Multi location, Multi

technology Company manufacturing a wide variety of “STATE-OF-THE-ART” Machine

Tools.

HMT-MTL has its manufacturing units at Five locations with each unit specialized in a

particular family of Machines. The Sales and Service network is spread across the length

and breadth of the country.

As leading manufacturer of Machine Tools in India HMT-MTL provides

• The best of products in terms of technology, productivity and cost effectiveness

• Comprehensive Customer Support services including Application Engineering,

Customer Training and After sales service.

HMT Machine Tools Ltd.

8

Today, HMT’s machine tool expertise has been developed to such an extent that HMT

Machine Tools Ltd. can design & develop any kind of machine, from simple lathes to multi

station transfer lines, from stand alone CNC machines to flexible manufacturing systems,

leading to factory automation. HMT’s broad range of machine tools covers General Purpose

Machines and CNC Machines to meet the application needs of every engineering industry.

Pioneering the concept of CNC technology in India, HMT has the distinction of being the very

first company to successfully manufacture its own CNC systems, in association with Siemens

of Germany.

Today, HMT is well positioned at forefront of the precision engineering field. Its manufacturing

plant employs a high skilled work force. Strongly supported by excellent in house R&D base,

HMT contributes to the technological advancement of Machine tools. To date, over 80,000

machine tools on par with international standards in quality and performance, manufactured by

HMT, are in use all over India. HMT is the largest unit in the industry with around 40% market

share. It employees over 4236 workers in total.

HMT have its manufacturing units at five locations with each unit specializing in a particular

family of machines/services. The Sales and Service network is spread across the length and

breadth of the country.

Quality

9

While HMT Machine Tools builds robust machines to extracting specifications, HMT’s

sophisticated quality assurance facilities ensure products that are highly reliable and

dependable. All the HMT machine tools manufacturing units are ISO 9001 accredited and

are on a way of upgrading to ISO 9001-2000 accreditation.

HMT's Milestones

10

VARIOUS UNITS & DIVISIONS OF HMT

YEAR UNITS / DIVISION LOCATION STATE

1953 Machine Tools I Bangalore Karnataka

1961 Machine Tools II Bangalore Karnataka-

1962 Watch Factory I Bangalore Karnataka

1963 Machine Tools III Pinjore Haryana

1965 Machine Tools IV Kalamassery Kerala

1967 Machine Tools V Hyderabad Andhra Pradesh

1971 Tractor Division Pinjore Haryana

1971 Die Casting Division Bangalore Karnataka

1972 Printing Machinery Division Kalamassery Kerala

1972 Watch Factory II Bangalore Karnataka

1973 Precision Machinery Division Bangalore Karnataka

1975 Machine Tools VI Ajmer Rajasthan

1975 HMT (International) Ltd. Bangalore Karnataka

1975 Watch Factory III Srinagar Jammu & Kashmir

1978 Watch Factory IV Tumkur Karnataka

1981 HMT Bearings Limited Hyderabad Andhra Pradesh

1981 Quartz Analog Watches Bangalore Karnataka

1982 Watch Factory V Ranibagh Uttar Pradesh

1982 Specialised Watch Case Division Bangalore Karnataka

1983 Stepper Motor Division Tumkur Karnataka

1985 Ball Screw Division Bangalore Karnataka

1986 CNC Systems Division Bangalore Karnataka

1991 Central Re-conditioning Division Bangalore Karnataka

11

Vision and Mission

12

• To establish as one of the world’s premier companies in the engineering field having

strong international competitiveness

• To achieve market leadership in India through ensuring customer satisfaction by

supplying internationally competitive products and services

To achieve sustained growth in the earnings of the group on behalf of shareholders

Corporate Objectives & Goals

13

• To encourage the modernization of Indian Industry through the supply of engineering

goods and services of world class excellence

• To maintain technological leadership through continuous efforts to update product

technology and manufacturing methods

• To globalize our operations by developing a mix of international markets and

businesses

• To ensure a satisfactory return on capital employed, to meet the growth needs and the

aspirations of our stakeholders

• To present an active, pleasant and productive working environment

Corporate Vision:

To be a leading GLOBAL ENGINEERING CONGLOMERATE focused on CUSTOMER

DELIGHT in our fields of Endeavour.

Corporate Mission:

To establish as one of the world’s premier companies in the engineering field

having strong international competitiveness

To achieve market leadership in India through ensuring customer satisfaction by

supplying internationally competitive products and services

To achieve sustained growth in the earnings of the group on behalf of

shareholders

Objectives & Goals

To encourage the modernization of Indian Industry through the supply of engineering

goods and services of world class excellence

14

To maintain technological leadership through continuous efforts to update product

technology and manufacturing methods

To globalize our operations by developing a mix of international markets and

businesses

To ensure a satisfactory return on capital employed, to meet the growth needs and the

aspirations of our stakeholders

To present an active, pleasant and productive working environment

Services Provided

Quality Products and Services.

Cost effective solutions to the customer.

Efficient after-sales-service through our Regional / Zonal offices.

Supply of spares required within a reasonable time.

Training to train the customer / his representatives on the utilization & maintenance of

the product

Commitment

Strive continuously to assure you of highest standard of service

Strive to attain international standards to become globally competitive.

Acknowledge all correspondence from you within a reasonable time of its receipt

Adhere to the delivery schedules committed by us to you

Strictly adhere to the standards, specifications stipulated in ISO-9001

Always maintain the highest ethical standards in all our endeavors, business and

economic activities

Always strive to achieve economy in all our products and services without

compromising the quality standards

Always remain competitive through continuous improvement in our technology

Always be honest and transparent and would like to be seen as honest.

Implement all the policies and directives of Central Vigilance Commission.

15

Expectations from Customer

Be prompt and reasonable.

Extend your cooperation in our entire endeavour.

Be fair, honest and transparent in dealings.

Provide detailed specifications.

Comply with the Service / Maintenance instructions and regular preventive maintenance

schedule.

We shall work together to achieve the product to your satisfaction.

Business Strategy

In order to effectively compete in an increasingly open market, where each manufacturer of

machine tools specializes in a particular family of machines, the Company has developed a

comprehensive business strategy which aims to profitably grow the Company’s market share

in key growth segments and to maintain its leadership position in the Indian machine tools

industry. The Company intends to pursue continued growth over the medium term by:

Integrating production and increasing productivity through efficient use of

existing capacity

The Company has developed a plan to restructure its operations by consolidating the

manufacture of certain products at certain locations based on the basic family of the machine

and thus creating ‘centers of excellence’ for a product. This will lead to greater synergy in

production, planning and marketing.

Cost reduction measures

Based on the assessment of manpower required, HMT-MT had a voluntary separation

package for its employees in 2000-01. 2,114 employees availed of the separation

scheme in 2000-01. In 2001-02, 1,235 employees have availed of the scheme till

December 31st, 2001. The Company proposes to continue rationalizing its manpower to

bring it to optimal size, commensurate with the size of its operations.

16

Increased research and development

HMT-MT considers R & D as its significant strength. The R & D department provides in-

house support to operations and development of new products with focus on technology

absorption, improved designs, cost reduction in various plants, improvement of yield,

quality of end products, reduction of wastes, etc. HMT-MT has been a leader in

developing innovative solutions for the manufacturing sector for the past 5 decades.

Exploiting its large domestic sales and support network to increase market share

HMT-MT believes that its extensive national marketing, sales and support network, with

its focus on customer service, product quality, and reliability of supply, provides the

Company with a significant competitive advantage over its competitors. The Company

proposes to significantly increase the market penetration of its products by leveraging

this extensive sales and support and distribution set-up.

ORGANISATIONAL STRUCTURE

HMT has three-tier structure of management. At the top is the council of Boards, which

contains in addition to the Chairman and Managing director and full time functional Directors

entrusted with finance and corporate planning, Personnel Director, Marketing , and also two 17

senior Executive Director who are the Chief Executive of tools HMT plants in additions to these

directors, the Corporate Board has three representatives of labor.

Each unit also has separate Board of Management, chaired by its General Manager and

staffed by the heads its functional departments.

This board is the unit Board meets every month for reviewing decisions to fulfill the roles of the

unit to achieve the corporate objectives.

In between the two in the committee of management which may rightly be termed as the real

working board of the enterprises. The internal members being the functional Directors and the

Company Secretary .

The Executive Committee of management is presided over by the Chairman and Managing

Director. It meets every month to review the performance of each unit and to resolve the

problems which are beyond the competence of the units.

ORGNISATIONAL STRUCTURE OF HMT PINJORE

At unit level of HMT Limited, Pinjore, the Executive Director is the head of the unit and the

organization is further divided into TWO main division:-

• Machine Tools division

18

• Tractor division

Both the units are controlled by the General Manager. The General Manager (HRM) is the

overall in charge of matters relation to the personal and Industrial relations of both the

divisions.

Marketing department of Machine Tool division and Tractor division is headed by the Joint

General Manager and Deputy General Manager respectively and assisted by the following

staff. Sharing the chain of responsibility of the respective departments:-

S.NO. Deptt. MTP TRP

a) Design Dy. General Manager GM(R&D)

b) Planning Jt. General Manager JGM(ET)

c) Progress Jt. General Manager AGM(RT)

d) Inspection DGM(QA) JGM(IT)

e) Store DGM AGM

f) Purchase DGM DGM

g) Sale Manager DGM

h) Personal GM(HRM)

PRODUCTS

19

Machine Tools

Product Range

20

Turning Machines

Grinding Machines

Gear Manufacturing Machines

Machining Centres

Other Gpms

Special Application Machines

Diecasting Machines

Presses

Cnc Systems

Precision Ballscrews

TURNING MACHINES

High Speed Precision Lathe Craft master

21

• CNC Lathes

• CNC Turning Centres

• Heavy Duty Lathes

• Single / Twin Spindle Chuckers / Multispindle CNC Automats

• Sliding Head Automats

• CNC Training Lathes

• Centre Lathes

• CNC Slant Bed Turning Centres

• CNC Heay Duty Lathes

• CNC Chuckers

• CNC Turnmill Centres

GRINDING MACHINES

22

CNC Surface Grinding Machine SGC1

• Cylindrical Grinders - CNC

• Internal Grinders - CNC

• Centreless Grinders - Non-CNC

• Surface Grinders - Non-CNC

• Double Disc Grinders - Non-CNC

• Grinders - Others

• Cylindrical Grinders - Non-CNC

• Centreless Grinders - CNC

• Surface Grinders - CNC

• Double Disc Grinders – CNC

• Tool & Cutter Grinders

GEAR MANUFACTURING MACHINES

23

CNC High Speed Gear Shaper WS1 CNC-3A

• Gear Hobbers - CNC

• Gear Shapers - CNC

• Gear Hobbers - Non-CNC

• Gear Shapers - Non- CNC

MACHINING CENTRES

CNC Drilling & Tapping Machining Centre BLITZ 30

• Machining Centres - Horizontal

• Machining Centres - High Speed

• Machining Centres - Vertical

• CNC Drilling & Tapping Centre

• Flexible Manufacturing Cells

• Flexible Manufacturing Modules

• Flexible Manufacturing Systems

OTHER GPMs

24

CNC Vertical Tool Room Milling Machine CTR-1

• Programmable Knee Type Milling Machine

• Turret Ram Type Milling Machine

• Column Drill

• Broaching Machine

• Knee Type Milling Machine

• Radial Drill

• Carbide Tool Lapping Machine

• Vertical Surface Broaching Machine

SPECIAL APPLICATION MACHINES

Machining Solutions –

For large size components

- For specialized applications

- For large volume productions

25

• Multi Station Round Table SPM

• SPM for Battery Manufacturing

• 2-Axes CNC Precision Co-ordinate Table

• Dual Spindle Case Trimming Machine

• Duplex Milling Machines

• Bilateral Master- Slave Servo manipulators

• CNC Heavy Duty Internal Grinding Machine

• CNC Drilling & Reaming Machine

• CNC Stitching & Hole Drilling Machine

• Head Turning & Mouth Reaming Machine

• Rotary Indexing Machines

• Flash Hole Drilling Machines

• CNC 4-Axes Chucker

• CNC Precision Internal Grinding Machine

DIE CASTING & PLASTIC INJECTION MOULDING MACHINES

Horizontal Cold Chamber pressure Die casting Machine DC 500

HMT offers 9 models of Die-Casting Machines with locking forces ranging from 80 to 1100

tones to cover a wide range of pressure Die-Casting of Aluminum, Zinc, Magnesium, Copper,

Lead & Tin components.

26

The salient features of these machines include digital setting of Die-closing / Opening and

Ejector Speed, Flying Piston type accumulator individually adjustable speeds and pressures,

large adjustable opening stroke and programme logic control.

HMT manufacturing six models of Plastic Injection Moulding Machine ranging from 80 to 630

tones locking force.

PRECISION BALL SCREW

A wide range of PRECISION BALL SCREWS used in CNC Machine Tool, Roto Gravure

printing machines and various engineering products for conversion of rotary motion into linear

movement and vice versa.

The range covers Ball Screws in sizes from Dia 25 MM to Dia 80 MM with leads 5,8, 10 & 12

MM pitches. Maximum length up to 3500 MM

PRESSES

27

HMT offers wide range of

• Mechanical Presses

• Hydraulic Presses

• Mechanical Press Brakes & other Presses

The HMT range covers Mechanical Presses up to 2500 tonnes and Hydraulic Presses upto

8000 tonnes. HMT Presses are designed and offered in various arrangements.Crank /

Eccentric Shaft / Eccentric Gear / Knuckle Joint Type with a choice of single point, two point or

four points of power application and gearing arrangements to suit individual requirements.

CNC SYSTEMS

CNC Systems covering controls for

• Turning Machine

• Machining Centers

• Grinders & Punch Presses

• Turning Centers

• Twin Spindle Chucker

Products & Services

28

WATCHES

The Mechanical Range

Hand wound Gents & Ladies - Desh Ki Dhadkan

Automatic Day-date- The Watch that lasts & lasts

Series of Quartz Watches

Elegance

- Its all about YOU

29

Roman

- ONLY For MEN

Utsav

- The Well Dressed Watch

Sangam

- Absolutely Modern, Absolutely Indian

Lalit

- Value for Money, For those who value Money

Pace

- For cute faces30

Swarna

- Good as Gold

Shreyas

- Sign of Good Times

Chandan

- The fragrance watch

Braille

- A gift of time to the blind & Also Customised watches for Institutions

Special Clocks

Tower Clock

31

Solar Clock

Population Clock

Display Clock

Floral Clock

International Clock

32

Master slave Clock

TRACTORS

33

MODEL HP RANGE MAIN FEATURE2522 25 AVL fuel efficient engine & New Style Bonnet

3022 30Fuel efficient engine (HMT Design); New Style Bonnet

3522 35AVL adapted fuel efficient engine & New Style Bonnet

4511 45 HMT Design5911 58 Heavy Duty Tractor (Czech Design)7511 75 HMT Design; Power steering & ROPS

2522 OS 25 Low height and width for orchard applications3522 CS 35 Wetland cultivation3522 DX 35 Direct Axle Drive4511 CS 45 Wetland cultivation

4922 EDI 49AVL adapted fuel efficient engine & New Style Bonnet

ENGINES25, 30, 35, 45 &

58Gen-set & Commercial applications

CS: Coastal Special DX: Direct Axle OS: Orchard Special

PRINTING MACHINERY

HMT’S Printing Machinery range includes:

34

o Five Color Sheet fed Offset Printing Machines

o Four Color Sheet fed Offset Printing Machines

o Two Color Sheet fed Offset Printing Machines

o Single Color Sheet fed Offset Printing Machines

o Web Offset Printing Machines

o Programmable Guillotines

o Punching & Stitching Machines

o Numbering Attachment

BEARINGS

35

Ball Bearings

Cylindrical Roller Bearings

Taper Roller Bearings

The Pinjore Unit

36

After having established two machine tools factories and a watch factory in Bangalore, the

Pinjore unit was established as the third machine tool factory .It went into production on 1st

October 1963.

This factory has been designed, built and commissioned entirely by Indian talent in record

period of 17 months of breaking the ground on May 2, 1962. Pandit Jawaharlal Nehru, the first

prime minister of free India, inaugurated it on October 23, 1963. Later in June 1971, HMT’s

Tractor project commenced its operations here.

It has now two Divisions:

Machine Tools Division

Tractor Division

Machine Tool Division:

The unit was initially planned for manufacturing Milling Machines. To begin with, foreign

designed machines were manufactured and subsequently after acquiring designing

capabilities, HMT’s self designed machines were introduced.

In 1969 manufacture of broaching machines was taken up as imported a substitution available

in horizontal and vertical versions cutting speed with dead constant speeds ensuring optimum

tool life and fine surface finish.

In tune with HMT commitment to Usher in the latest technologies to the country’s gust

developing Industrial base, In 1976 the unit introduced the state of the art computerized

numerically controlled machines offering unlimited options in the unmanned manufacturing

concept.

The unit has designed a wide rang of both horizontal and vertical CNC machines centres to

meet stringent accuracy standard, providing high flexibility and productivity with enough

muscle to remove large quantity of material at low rpm for steels and high metal alloys.

37

High processing speed is ensured through CNC systems that have powerful graphics and

user finely features. The machine can be integrated with other machine tools into flexible

manufacturing line.

The unit also manufactures moving column type special purpose machines which can perform

milling, drilling, tapping, boring and reaming operations with re-circulation linear motions

bearing for high position accuracy with encoder ‘X’, ‘Y’, ‘Z’ axis.

Products of HMT Pinjore Division:

FMS & FMC; Machining Centers – Horizontal and Vertical; Broaching Machines; Milling

Machines – CNC & NON CNC; Rotary Tables; ATCs; Refurbishing & CNC Retrofitting

Tractor Division:

HMT established Tractor plant in Pinjore in 1971 to provide Impetus to the Country’s Green

Revolution. To begin with, it started assembly of 25 HP tractors in collaboration with M/s.

Motokov of erstwhile Czechoslovakia, manufacturers of Zetor brand of tractors. Pinjore was

selected for the project because it was within the high-density crop-producing region according

immediate market in the vicinity.

Initially, the tractors were assembled from imported CKD/SKD packs. Production facilities

were simultaneously established to reduce the imported content with the result that the model

was fully indigenized within a short span of five years. Designing capabilities were acquired to

widen the product range.

Product Range

At present, HMT manufactures tractors in 25, 30, 35, 45, 58, 65 and 75 HP ranges. Out of

these 30, 35, 45, 58, 65 and 75 HP Tractors have designed in house. HMT also manufactures

specialized versions for particular soil conditions like coastal special and the orchard special.

HMT sells its Tractors through its well knit 300 strong dealer network. It has sold over 3,

50,000 tractors so far, within the country as well as in the international market.

38

Looking Beyond Tractors

High Speed Tractors

HMT has entered into technology transfer agreement with Tractor Vehicle ltd. to manufacture

and market the worlds only transport oriented tractors (HMT tractors). HMT limited has

obtained exclusive world wide rights to manufacture and sell tractors featuring a range of 2

wheels and 4 wheels drive with fully suspended axels in 60 to 130 HP ranges.

HMT Diesel Engines

HMT plans to grow the business of diesel engine as a strategic business unit and is taking

initiatives towards this end.HMT has been manufacturing 2, 3, and 4 cylinders diesel engines

in the range of 25HP to 65HP in technical collaboration with A.V.L of Austria to meet its captive

requirement for powering tractors since 1971.

It is also offering the diesel engines for industrial applications like compressors, Rice and

Flour Mills and Construction equipments etc. and for power generation in the range of 12 to 35

KVA ratings. Of late, it has opened up the sales of its diesel engine for tractor powering also.

The engine manufacturing facilities are continually upgraded and improved to ensure requisite

quality. Institutions like The Automotive Research Association of India, Pune (ARAI), and

Bureau oIndian Standards (BIS) etc. certify HMT engines. Reliability and economy are the

main features of HMT Diesel Engines.

39

Marketing Mix Of HMT Machine Tools Ltd.

P’s Of Marketing for HMT Machine Tools

MARKETING MIX

The key to understand integrated marketing today is to understand the implications of the word

‘strategy’. A strategy is what you are going to do; a marketing strategy is the link between the

product and the market; it provides the much desired direction for allocation of marketing effort.

It is translated into an action plan through the tools of marketing management. These tools

together are called as MARKETING MIX. Individually they are Product, Price, Place, and

Promotion.

Marketing Mix is the set of controllable, tactical marketing tools product, price place and

promotion that the firm blends to produce the response, it wants in the target market. The

marketing mix consists of everything the firm can do to influence the demand for the product.

Many possibilities can be collected into four groups of variable known as 4p’s.

Product 40

PRODUCT MIX PRICE MIX

PROMOTION MIX PLACE MIX

Marketing

Mix

An object or a service that is mass produced or manufactured on a large scale with

a specific volume of units.

A typical example of a mass produced service is the hotel industry. A less obvious but

ubiquitous mass produced service is a computer operating system.

Typical examples of a mass produced objects are the motor car and the disposable

razor.

Price

The price is the amount a customer pays for the product. It is determined by a number

of factors including market share, competition, material costs, product identity and the

customer's perceived value of the product.

The business may increase or decrease the price of product if other stores have the

same product.

Place

Place represents the location where a product can be purchased. It is often referred

to as the distribution channel.

It refers to how the product gets to the customer; for example, point of sale placement

or retailing. This fourth P has referring to the channel by which a product or services is

sold (e.g. online vs. retail), which geographic region or industry, to which segment

(young adults, families, business people), etc.

Promotion

Promotion represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements - advertising, public relations, word of

mouth and point of sale.

41

Public relations are where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and

events.

Word of mouth is any apparently informal communication about the product by ordinary

individuals, satisfied customers or people specifically engaged to create word of mouth

momentum.

Sales staff often plays an important role in word of mouth and Public Relations (see

Product above).

Product Mix

HMT Machine Tools Ltd. produces a wide range of products from simple lathes to multi

station transfer lines, from stand alone CNC machines to flexible manufacturing systems,

leading to factory automation.

HMT’s broad range of machine tools covers General Purpose Machines and CNC Machines to

meet the application needs of every engineering industry. Its main products are:

TURNING MACHINES

• High Speed Precision Lathe NH 22/26/32

• High Speed Precision Center Lathe CRAFTMASTER

• CNC Lathe STARTURN

• CNC Center Lathe Pride M100

• CNC Lathe AUTOMANN 26

• CNC Lathe ECONO CNC 26

• CNC Lathe AUTOCOMP 55

• CNC Lathe STALLION 100

• CNC Lathe STALLION 200

• CNC High-Speed Turning Machine STALLION HS

• CNC Turning Center PUSHKAR 200

• CNC Turning Center SUPERTURN 20

42

• Slant Bed CNC Turning Center STC 20

• Slat Bed CNC Turning Center STC 25/ SBNC 30

• Slant Bed CNC Turning Center SBCNC 40/60

• CNC Turning Center PRECITURN PT-S/L/EL

• Flexible Turning Cells

• Medium and Heavy Duty Lathe

o SUPERCUT LATHE B32

o Heavy Duty Lathe L45/L50/L60/L70

o Medium Duty CNC Lathe B32 CNC

o Heavy Duty CNC Lathe L45 CNC/L50 CNC/L60 CNC/L70 CNC

o CNC TWIN SPINDLE CHUCKER TSC 20

• CNC AUTOMAT A16 CNC

• SLIDING HEADSHOCK AUTOMAT P7/P16

• CNC TURNINGMILL CENTER GDM

• MULTISPINDLE AUTOMAT GS/GF

• MULTISPINDLE AUTOMAT AS/ASH

• SEMI AUTOMATIC TURNING MACHINE SAT

• CNC TRAINMASTER LATHE T70 PC/ T100 PC

MACHINING CENTRES

• VERTICAL MACHINING CENTRES

o VMC 400S/VMC 400M/VMC 500M/VMC 800M/VMC 1000/VMC

1200M/VMC 1600/VMC 5SM

o CNC TRAINMASTER MACHINING CENTER VMC 200T PC

o CNC DRILLING AND TAPPING CENTER BLITZ 30/DT40

43

• HORIZONTAL MACHINING CENTRES

o HORIZONTAL MACHINING CENTER HMC400M/ 500M/ 630/ 400/ 500/

4S

o HIGH SPEED HORIZONTAL MACHINING CENTER HSM 400/HSM 500

o HORIZONTAL MACHINING CENTER HMC800/ 1000/ 1250/ 1500

MILLING, DRILLING & BROACHING

• CNC VERTICAL TOOL ROOM MILLING CTR 3V/ 5V• RAM TYPE TURRET MILLING MACHINE TRM 3V/ 5V• KNEE TYPE MILLING MACHINE FN2• KNEE TYPE MILLING MACHINE FN3• MILLING MACHINE FNR• DOUBLE COLUMN CNC COORDINATE DRILLING & TAPPING MACHINE

CDM 25• RADIAL DRILL RM• BROACHING MACHINE RISZ/ RW• DOUBBLE ENDED FACING & CENTERING MACHINE

GRINDING MACHINES

• HYDRAULIC CYLINDERICAL GRINDER G17 / G22

• PRECISION CYLINDRICAL GRINDER ANUBHAV 130 & APURVA 175

• CNC CYLINDRICAL GRINDER SMART 125/175

• CNC CYLINDRICAL GRINDER CGM 225 CNC

• CNC UNIVERSAL GRINDING MACHINE GNC15

• CNC CYLINDRICAL GRINDING MACHINE G12 CNC

• HEAVY DUTY CNC UNIVERSAL GRINDER G60 CNC

• ROLL CAMBER/ CYLINDRICAL GRINDER GRC55

• HYDRAULIC SURFACE GRINDER SFW

• HORIZONTAL SPINDLE SURFACE GRINDER PSG200

• CNC VERTICAL SURFACE GRINDER CNC GVS 30/ CNC GVS40

• CNC SURFACE GRINDER SGC1 CNC

• CNC ROTARY SURFACE GRINDER RSG 500

• TWIN GRIP CENTERLESS GRINDER GCL140 FGH TG

44

• PRECISION CENTERLESS GRINDER GCL60/1OO/140

• CNC INTERNAL GRINDER SMART IG 150/ GI 100 CNC

• CNC INTERNAL GRINDER GIN90 / 2A

• CNC INTERNAL AND FACE GRINDER GIN30/ 4A

• CNC INTERNEL GRINDER GIN 20/ 2A,3A AND 4A

• CNC INTERNAL AND FACE GRINDING MACHINE GIN16T/ 2A

• CNC BORE GRINDING MACHINE

• CNC DOUBBLE DISC GRINDER GDS 15 CNC/ 22 CNC

• CRANKSHAFT GRINDER GCS 500

GEAR CUTTING MACHINES

• TRAINER GEAR HOBBER H125

• GEAR HOBBER H250/ H 400

• HIGH SPEED GEAR HOBBER L200

• CNC GEAR HOBBER H250 CNC (3 AXIS)

• CNC GEAR HOBBER H 400 CNC (2 AXIX)

• HIGH SPEED CNC GEAR HOBBING MACHINE L200 (3 AXIS)

• GEAR SHPER MESHMATIC S 150

• HIGH SPEED GEAR SHAPER W51

• CNC HIGH SPEED GEAR SHAPER WS1 CNC (1&3 AXIS)

SPECIAL PURPOSE MACHINES

• BED TYPE MILLING MACHINES

• HORIZONTAL BORING & MILLING MACHINES (TABLE TYPE)

• FLOOR TYPE HORIZONTAL BORING & MILLING MACHINES

• CNC FLOOR BOARING MACHINE

• CNC 3-AXLES PLANOMILLING MACHINE

• CNC DOUBLE COLUMN PORTAL VERTICAL MACHINING CENTER

• 5-AXLES CNC GANTRY VERTICAL RAM TYPE PLANO MACHINING CENTER

(CNC GANTRY POWER MILL)

45

• CNC VERTICAL TURNING MACHINES

• FLEXIBLE MANUFACTURING SYSTEM

• 7-AXLES CNC UNIVERSAL TRAVELLING COLUMN DRILLING,BOARING &

MILLING MACHINE

• MOVING COLUMN RAN TYPE MILLING AND BOARING MACHINE WITH 5

AXES CNC SYSTEM

• 5-AXES CNC HONEY COMB MILLING MACHINE

• 6-AXES CNC HIGH SPEED ROUTING AND DRILLING MACHINE

• CNC SEMI AND FINISHED LINE BOARING MACHINE

• CAMSHAFT MILLING MACHINE

• CNC 4-AXES CHUCKER

• CNC DRILLING AND REAMING MACHINE

• MULTISTATION ROTARY SPM

• HEAD TURNING AND MOUTH REAMING MACHINE

• 2-AXES HIGH SPEED PRECISION CNC CO-ORDINATE TABLE

• ROTARY INDEXING MACHINE

• DUAL SPINDLE CASE TRIMMING MACHINE

• FLASH HOLE DRILLING MACHINE

• DUPLEX MILLING MACHINE

• RUGGED DUTY EXTENDED REACH MANIPULATOR (RDM)

• THREE PIECE MASTER SLAVE SERVO MANIPULATOR

• SUB SYSTEM FOR ENGNEERING TOMOGRAPHY

DIECASTING,PIM,PRESSES

• HORIZONTAL COLD CHAMBER PRESSURE DIECASTING MACHINES DC80

TO DC 1100

• MICROPROCESSOR CONTROLLED AUTOMATIC PLASTIC INJECTION

MODULING MACHINES P180 TO PI630

• PRESSES AND PRESS BRAKES

• MECHANICAL PRESSES E2S-100-SF/E2S-200-SF-E2S-300-SF

46

• CUSTOM BUILT MECHANICAL PRESSES

• SPECIAL MECHANICAL PRESSES

• HYDRAULIC PRESSES

• HYDRAULIC PRESS BRAKES

• MECHANICAL PRESS BRAKES

PRINTING MACHINES

• FIVE COLOUR SHEETFED OFFSET PRINTING MACHINES WITH

PERFECTOR SOM 536 V

• FOUR COLOUR SHEETED OFFSET PRINTING MACHINE SOM 436/ 431

• FOUR COLOUR SHEETED OFFSET PRINTING MACHINE SOM 425/ 204

• TWO COLOUR SHEETED OFFSET PRINTING MACHINE SOM 236/ 231

• TWO COLOUR SHEETED OFFSET PRINTING MACHINE SOM 225/

225N/220/220N

• SINGLE COLOUR SHEETED OFFSET PRINTING MACHINE SOM136/ 131

• SINGLE COLOUR SHEETED OFFSET PRINTING MACHINE SOM 125G/

125N/125B

• SINGLE COLOUR SHEETED OFFSET PRINTING MACHINE SOM 120/ SOM

120N

• MINI OFFSET PRINTING MACHINE PEARL 1217

• MINI OFFSET PRINTING MACHINE MOM 1015

• PROGRAMMABLE GUILLTINE PG 92 AND PG 115

47

Price Mix

The pricing decisions or the decisions related to prices charged by companies are found

instrumental in motivating or influencing the target market.

The pricing policy of A Company is considered important for raising the number of customers’.

Also the quality of service provided has direct relationship with the fees charged. Thus while

deciding the price mix customer services rank the top position.

The organizations are required to frame a strategy. First, the strategy is concerned with fee

charged and the second strategy is related to the service provided. Since both the strategies

throw a vice- versa impact, it is important that company attempt to establish a correlation

between two. It is essential that both the buyers as well as the sellers have feeling of winning.

Pricing HMT Machine Tools Ltd. Products Starts With Three Basic Questions.

1. What rate does the HMT Machine Tools Ltd. need to meet its financial objectives?

The answer is, the machines of HMT Machine Tools Ltd. are of high quality and technology.

So, pricing should be such that the company can get its cost and also some profit up to the

level which is fixed by top level management.

Another element to consider in the pricing of earning assets is the risk of loss. Most notably,

this is relevant in CNC machines. Many companies assign a risk weighting to individual

machine over a certain size or based on machine type and assign a credit risk charge based

on those ratings.

Customer relationships are difficult to assign a value to in the pricing process. Customers will

generally press for some price concessions in consideration of other relationships they have

with the HMT Company.

48

2. What is the market rate for the core product?

Customers have more distribution channels available to them today than at any other point in

history. In the past few years, the number of machine tools company’s locations has increased

a great number. Of course, there are the second hand machine sellers, and the Chinese

machines sellers competing with the company.

The point is, the competitive marketplace always ensures that if a company is charging too

much for any kind of machine, its share of the market will likely dwindle as existing and

prospective customers find alternative providers. You can do the entire math you want to

determine required pricing points, but if you’re pricing is uncompetitive, your market share

will shrink.

3. What would the HMT Machine Tools Ltd. has to do to sales and operations to make its rates the most competitive in its market?

Pricing is a key issue for the associates who sell same products to your customers. The fact

is, HMT Machine Tools Ltd. wants higher rates for its machines, and people want the

machines at lower rates. You need the right balance of effectiveness and efficiency to reduce

operating costs, and a healthy asset and liability mix to change your required pricing.

PLACE MIX

49

This component of marketing mix is related to the offering of services. The services are sold through the branches.

The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for branches.

The number of branches of HMT machine tools: 5

LOCATION OF BRANCH:

• BANGALORE COMPLEX

• PINJORE COMPLEX

• KALAMASSERY COMPLEX

• HYDRABAD COMPLEX

• AJMER COMPLEX

50

51

Bangalore Complex:

Machine Tools Division, Bangalore, HMT P.O., Bangalore 560 031

Telephone 91-80-5662 6850 / 52

Pinjore Complex:

Machine Tools Division, Pinjore 134 101. Dist. Panchkula

Telephone 91-1733-263 825-29

Kalamassery Complex

Machine Tools Division, HMT Colony P.O. Kalamassery 683 503, Ernakulam Dist. Telephone 91-484-254 0731

Hyderabad Complex

Machine Tools Division, HMT Township P.O., Narsapur Road, Hyderabad 500 054, Telephone 91-40-2308 5721

Ajmer Complex

Machine Tools Division, Beavar Road, Ajmer 305 003

Telephone 91-145-244 0620 / 244 0670

SALES & SERVICE NETWORK52

Marketing Network:

53

• Wide marketing network manned by qualified & trained sales & service engineers

• Service outlet at customer doorsteps in major industrial locations.

• Customer training programs on Mechatronics in addition to regular machine-oriented

training for machine tools.

• Manufacturing Units supplement customer support for tooled-up and high technology

machine tools

Promotion Mix

Promotion Mix is the communication mix which deals with the personal and impersonal

persuasive communication about the product or service of the manufacturer. Though

companies communicate with their present and potential customers in wide variety of ways,

the most distinguishable categories are two namely Personal and impersonal.

HMT Machine Tools Ltd. uses Personal Selling way to communicate with there

customers. Personal selling has an important role to play in communicating between a firm

and its customers. The manager of HMT Machine Tools Ltd. himself goes in personal and

meets the clientele. He gets to knows about the need of the customer and tells him the best

product which will suit to him.

All the queries of the customer are addressed by the sales representative. Negotiations,

discounts etc. are also done in personal by the manager. HMT selling industrial products does

not need to advertise or promote sales; it just needs a good sales representative to handle the

sales department.

Trade Fairs and Exhibitions are the only mean of promotion of the products by HMT. An

Exhibition is the huge congregation of manufacturers and dealers under a single roof for

displaying, demonstrating and selling their products. These Exhibitions are mostly organized

by organizations namely Chambers of Commerce and Indian Machine Tools

Manufacturers Association (IMTMA).

Some upcoming Exhibitions are as follows:

54

• IMTEX 2007 & TOOLtech 2007, The 13th Indian Machine Tool Exhibition with

international participation rganised from 18-24 January 2007 at Bangalore

International Exhibition Centre [BIEC], Bangalore.

• Modern Machine Shop 2008, 25 - 29 April 2008, Pragati Maidan, New Delhi

• TOOLtech 2008, 10th International Exhibition of Cutting Tools, Tooling Systems,

Machine Tool Accessories, Metrology & CAD/CAM 15 – 18 February 2008 at Bangalore

International Exhibition Centre [BIEC], Bangalore.

• IMTEX 2009 and IMTEX2010, 22- 28 January 2009

& 21 - 27 January 2010, Bangalore International Exhibition Centre [BIEC], Bangalore.

55

Chapter – 2:

Project Profile

CONSUMER BEHAVIOUR/PREFERENCES

56

Before getting into the details of Consumer Behavior we need to understand some basic

terminologies. In general terms both ‘Consumer’ and ‘Customer’ are considered the same but

they are quite different.

Customer:

The term is used to refer to someone who regularly purchases from a particular store or

company. Mahatma Gandhi has made a visionary and deep meaningful statement at

Johannesburg, South Africa in 1890, “A customer is the most important visitors on our

premises. He is not dependent on us. We are dependent on him. He is not an interruption

on our work. He is the purpose of it. We are not doing him a favour by serving him. He is

doing us a favour by giving us the opportunity to do so”.

Traditionally the word ‘Customer’ was used to define people whom the organization dealt

with externally. Though the word ‘Customer’ is used as a single unit purchases could

be made both by the individual and the group’.

Consumer:

The traditional view point has been to define consumer strictly in terms of economic goods

and services.

This position holds the consumers are potential purchasers of product and services offered

for sale. The view has been broadened overtime so that at least some scholars now do not

consider a monetary exchange to the definition of consumers. This change implies that

potential adopters of free services or even philosophies or ideas can also be encompassed

by the definition.

So ultimately Consumers are those individuals who purchase for the purpose of individual

or household consumption.

OR

57

The individual who consumes or uses a product , which may or may not be purchased by

him. So, after getting into these terms we need to get into the details of “Consumer

Behavior”.

Consumer Behavior can be said to be the study of how individuals make decision on how

to spend their available resources (time, money, efforts) on various consumption related items.

OR

Consumer Behavior may be defined as the decision process and physical activity individuals

engage in when evaluating, acquiring, using or disposing of goods or services.

The Consumer Behaviour research goes far beyond the facts of consumer preferences and

encompasses all of the behaviours that consumers display in searching for purchasing, using,

evaluating and disposing of products and services that they expect would satisfy their need.

The detailed study of Consumer Behaviour or Consumer Preferences focuses on-

o Who Buys products or services?

o How do they buy products or services?

o Where do they buy them?

o How often do they buy them?

o When do they buy them?

o Why do they buy them?

o How often do they use them?

These questions will help in understanding the factors that influence the decision making

process of the consumers. It generally assumed that consumer decision making is based on

limited information that the consumer has.

CONSUMER DECISION MAKING

58

It refers to the set of activities that would lead an individual to perform some specified tasks. In

case of consumer preferences it would refer to the set of factors that make an individual prefer

one product over another.

The preference for the products mainly lies in the answer of the following important questions-

How well the product suits the consumer?

Till what extent it satisfies the needs of the consumers and what are the

shortcomings?

Does the product suit the budget/purchasing power of the consumer?

How readily and easily the product is available in the market?

POST PURCHASE BEHAVIOUR:

The output portion of the Consumer Behaviour model states that the consumer evaluates the

various brands of the products he is interested in buying and then chooses a specified brand.

The purchase can be –

Repeated Purchase i.e. buying the same product again.

Trail i.e. going for the new product just because the earlier similar product was not

satisfying or because the consumer likes to try new product.

LITERATURE REVIEW

59

Once the research problem is formulated, the researcher undertakes an extensive literature

survey. The literature survey conducted here includes the academic books and websites from

internet.

The research to be conducted was “To study the Customer Behavior of HMT Machine

Tools and its Comparison with others”

The inspiration to conduct this particular research was from David L. Loudon & Albert J.

Della Bitta, Consumer Behavior Concepts and Application19. There are various brands of

different machines available in India and the individuals prefer different ones according to their

choice and needs. The details about the different machines have been collected from websites

likehttp://www.sonalika.com AND http://en.wikipedia.org/wiki/machinetools

60

MODEL OF BUYING BEHAVIOUR

MARKETING STIMULI OTHER STIMULI BUYER’S

CHARACTERICTS

BUYER’S DECISION

PROCESS

PRODUCT

PRICE

PLACE

PROMOTION

PHYSICAL

DISTRIBUTION

ECONOMIC

TECHNOLOGICAL

POLITICAL

CULTURAL

CULRURAL

SOCIAL

PERSONAL

PHYCHOLOGICAL

PROBLEM

RECOGONITIO

N

INFORMATION

RESEARCH

EVALUATION

OF

ALTERNATIVES

PURCHASE

DECISION

POST

PURCHASE

BEHAVIOUR

CONSUMER DECISION MAKING PROCESS

61

Understanding consumer behavior and ‘knowing customers’ is never simple. Customers may

say one thing but do not say another. They may not be in touch with their deeper motivations.

They may respond to influences that change their mind at the last minute………..According to

ALBERTO CULVER PHILOSOPHY

Business organizations do not only sell. They also buy vast quantities of raw materials,

manufactured components, plant & equipment, supplies & business services. Seller needs to

understand these organization’s needs, resources, policies & buying procedures.

There are several research designs5 and researcher must decide in advance of collection and

analysis of data as to which design would prove to be more appropriate for his research

project. He must give due weight to various points such as the type of universe and its nature,

objectives of his study, the resource list or the sampling frame, desired standard of accuracy

and the like when taking a decision in respect of design for his research project.

The research has tried to cover almost every area of the research topic and has gained an

insight of the Customer’s Satisfaction of HMT Machines Tools Ltd. and its competition with

others.

PROBLEM

RECOGONITION

POST PURCHASE

DECISION

PURCHASE

DECISION

INFORMATION

RESEARCHEVSLUATION OF

ALTERNATIVES

62

Chapter-3:

RESEARCH METHODOLGY

Research in common parlance refers to search for knowledge. It can also be defined as a

scientific and systematic search for information on a specific topic. According to OXFORD

63

Dictionary: “Research is a careful investigation or inquiry especially through search of

new facts”.

Research Methodology in a way is a written game plan for conducting research. Research

methodology may have dimensions. It includes research methods and also considers the logic

behind the methods used in the context of the study. It may also be understood as the science

of the study and minimizes the degree of uncertainty of making wrong choices. It helps to

understand assumptions underlying various techniques and the criteria by which they can

decide that certain techniques will be applicable to certain problems and others will not.

Therefore in order to solve a research problem it is necessary to design a research

methodology for the easy and accurate solution of the problem.

SAMPLING AND SAMPLE DESIGN

SAMPLING:

64

Sampling can be defined as the selection of some part of an aggregate or totality on the

basis of which a judgment or inference about the aggregate or totality is made. In other words

it is the process of obtaining information about an entire population by examining only a part of

it. The process of sampling is used for various reasons-

Sampling saves time and money. It is usually less expensive and produces results at

faster speed.

It provides more accurate information.

It enables to estimate the sampling errors and thus assists in obtaining information

concerning characteristics of population.

It also enables greater speed of collection of data.

The ultimate test of sample design is how well it represents the characteristics of the

population it purports to represent. In measurement terms the sample must be valid which

depends upon –

Accuracy – It is the degree to which biasness is absent from the sample.

Precision – It represents how well the sample represents the population in all

respect.

SAMPLE DESIGN:

A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to

the technique or the procedure that is adopted in selecting the sampling units from which

65

inferences about the population is drawn. Sampling design is determined before the collection

of the data.

Several decisions have to be taken in context to the decision about the appropriate sample

selection so that accurate data is obtained and efficient results are drawn.

Following questions have to be considered while sampling design-

What is the relevant population?

What is the parameter of interest?

What is the sampling frame?

What is the type of sample?

What sample size is needed?

How much will it cost?

SAMPLE SIZE:

66

It indicates the number of individual who would be surveyed. Here the sample size is 100

respondents but the evaluation is being on the data obtained from 80 individuals as the

remaining questionnaires were not completely filled.

SAMPLING:

In this case Extensive Sampling would be used.

67

DATA COLLECTION

After defining the problem and deciding about the sample and its size we need to collect data

to further carry out our report work. The gathering of data may range from a simple observation

at one location to a grandiose survey of multinational corporations at sites in different parts of

the world. The method collected will largely determine how the data is collected. The main

methods of data collection adopted here are –

Primary Data Collection:

This methodology is used for the proximity to the truth and control over errors. These cautions

remind us to use care in designing data collection procedures and generalizing form results.

There are several methods of primary data collection like Observation Method, Interview

Method, Schedules, and Questionnaires and so on. The method used by me is

Questionnaire.

It is considered as the heart of survey operations and therefore should be very carefully

constructed. It consists of a number of questions printed or typed in a definite order which is

filled by the respondents on their own. A good questionnaire should be comparatively short

and simple and the sequence shall be from easy the difficult ones.

Questionnaires have many positive features like-

• They are economical.

• They are free form the biasness of the interviewers.

• Respondents have adequate time to give well thought to their answers.

• Respondents can be reached conveniently.

• Large samples can be used and therefore the results are more dependable.

Before using this method “PILOT SURVEY” was conducted by me.

68

PILOT SURVEY-

It is the replica or rehearsal of the main research or survey and is carried out to find out the

weaknesses of the questionnaire and the survey techniques. Experience gained in this way

would lead to the improvement in the study. My pilot survey was conducted on 10 respondents

and I found the results quite satisfactory and therefore went forward with the same

methodology of the study adopted.

SECONDARY DATA COLLECTION:

Secondary data means that data that are already available i.e. refers to data which has

already been collected and analyzed by someone else. The sources used in this case are-

Magazines.

Journals.

Websites.

Company profile.

69

Chapter – 4:

LIMITATIONS

70

Various hindrances occurred while carrying out the research. They have

acted as limitation of the study and a few of them are:-

1. The time period for carrying out the research was short as a result of which many

facts

have been left unexplored.

2. The area for study which is quite a large area to judge out the consumer preferences

for the various Machine Tools Companies.

3. The market is not well flourished and because of which many good brands are not

available.

4. Consumers were not aware about various brands available.

5. Only 100 respondents have been chosen which is a small number to represent the

whole of the population.

6. While collection of the data many consumers were unwilling to fill the questionnaire.

7. Many of the respondents did not fill the questionnaire completely because of which

the

sample size got reduced to 80.

8. Research gets bound as we have to give liter tests along with study.

9. Method of sampling is chosen which seems not to be appropriate.

10.No stipend provided by the company for this research work. so it was difficult for me

to bear the expenses, in order to deliver my 100%.

11.As machines being an industrial product I didn’t find many respondents who would

answer to me due to their busy schedule.

71

Chapter – 5:

DATA ANALYSIS

&

INTERPRETATION

72

1. Does u have any CNC machine?

yes

no

0%

10%

20%

30%

40%

50%

60%

70%

AGRO PRODUCT

yesno

Interpretation

This was a straight forward question the answer to it was that about 67% of the

respondents had AGRO machine .

Most of the have adopted the new technology but the remaining who are not using

AGRO machines may is due to the high prices of this type of machines.

73

2. Are you aware of all the Major Market Players of Machine Tools?

SONLIKAHMTESCORT

OTHERS

NO

0%10%20%30%40%50%60%70%80%90%

100%

Cunsumer Awareness

SONLIKAHMTESCORTOTHERSNO

Interpretation

Customers in particular area seems to be having good knowledge about all

machines. They are very much aware about most of the companies.

HMT and BFW are more familiar among the customers as compared to other

companies like BOTALIBOI, LMW.

About 90%of customers were aware of BOTALIBOI, 86.33% each of LMW and

others.

All of the customers were aware about HMT.

74

3. Which Brand/Companies Machine does u own?

0%

10%

20%

30%

40%

50%

60%

HMT

SONALIKA

ESCORT

OTHERS

Interpretation

Out of samples surveyed, 59% were responding for HMT.

18% customers were having BFW Machines.

9%were having Botaliboi.

8%were having Germany made Machines.

5% person had the low quality Chinese Machines.

75

4. For how long does u have that Machine?

0%

5%

10%

15%

20%

25%

30%

35%

Years Since they are havingMachines

1 to 2 yrs

2 to 3 yrs

3 to 4 yrs

4 to 5 yrs

more than 5 yrs

Interpretation

On this question the response came out to be that 21% of the respondents were

having CNC machine for the past 1-2 year only.

23% were having it from the last 2-3 year,13% had it from 3-4 year.

10% had it from 4-5 year and the well established companies had it before the

last 5 years.

76

5. Does price bothers you before purchasing any Machine?

Yes

No

In some cases

0%5%

10%15%20%25%30%35%40%45%50%

Respondents view abou Price

YesNoIn some cases

Interpretation

Most of the people about 49% of the people said yes Price bothers them before

purchasing any machine , cause the cost of mostly all the CNC machines is so

high that people have to think before buying it.

34% of the respondents said no price don’t bother them because they want just

the best at any price.

17% replied that in some cases price is a major factor for them.

77

6. Which is the most important factor to you before purchasing any machine?

0%

5%

10%

15%

20%

25%

Factors Influencing Purchse

Price

Life of Machine

MaintenanceCost

after sale

capicity of work

Interpretation

From the survey it is clear that price is the most important factor before

purchasing any machine, about 25% of the respondent said this.

22% said life of the machine is most important for them.

Maintenance cost and After Sales Services had similar response about 18% and

15% respectively.

Performance of the machine was also rated high, it was about 20%.

78

7. Which factor is most influencing to you to purchase the Machine?

0%

5%

10%

15%

20%

25%

30%

35%

40%BRAND IMAGE

PRICE

AFTER SALESSERVICELIFE PERIOD OFTHE MACHINEANY OTHER

Interpretation

Brand Image is given importance before making the purchase decision as 39% of

the respondents replied.

Price again as analyzed earlier is the most important factor for making purchase

decision, 11% respondents replied that price is the most influencing factor for

them.

After Sales service was influencing for 31% respondents.

Life of machine was rated high by 15% respondents.

And other Factors like Handling, Size etc. influenced 4% of our respondents.

79

8. Who influences you more in buying decisions of CNC Machines?

Interpretation

Most of the respondents are in machine tools industry from a long time, so they

themselves are aware of what to buy; about 30% respondents said they

themselves make the purchase decision.

The engineers are the persons who are responsible for the effective production,

37% of the buyers are influenced by their Engineers for making purchase

decision.

Past experience of the machine counts a lot 29% of the respondents are

influenced by that.

Other factors were rated just 4%.

80

9. What impact has price got on the purchase of CNC Machine?

Interpretation

Price has a very high influence on 36% of the respondents.

49% of the respondents were highly influenced.

25% were having a medium impact, where as 8% were very less influenced by

the price of the machine.

81

10. From where does u come to know about the latest Machines and technology?

Interpretation

Exhibitions and Trade fares are the major source of consumer’s knowledge,

through these they come to know about various new machines and

technology.34% and 43% is the response to exhibitions and trade fares

respectively.

Through the Word of Mouth 13% of the respondents come to know about new

machines.

Magazines and Newspaper are the source of information for 10% of the

respondents.

82

11. Are you satisfied with the after sales services of your CNC Machine?

8%

44%

27%

21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

After sales service satisfation level

Fully Satisfied

Satisfied

Neutral

Dissatisfied

Interpretation

On this question the answer as Fully Satisfied people is very less it is about 8%.

The number of Satisfied persons is high it is about 44%, which is the highest

percentage, means most of the people are satisfied with the after sales services

provided.

Percentage of Neutral people is 27%, whereas dissatisfied respondents are 21%.

83

12. Are you satisfied with its overall performance of your Machine?

Interpretation

Fully Satisfied people in any case are found very difficultly, so is the case here

the number of Fully Satisfied respondents are just 10%.

Satisfied numbers of respondents are more about 46% of the respondents are

satisfied with the performance of their Machine.

Neutral and Dissatisfied respondent are 25% and 19% respectively.

84

13. According to you which company gives most benefits to customers?

HMT

sonalikaescort

OTHERS

0%

20%

40%

60%HMTsonalikaescortOTHERS

HMT 25%

sonalika 40%

escort 30%

OTHERS 5%

Company giving more benefits to customers

Interpretation

The response to this question is not in favor of HMT, as persons in favor of HMT

are just 25%.

SONLIKA which provides most benefits to its customers, 40% of the

respondents gives this evident.

ESCORT is also above HMT in providing benefits to its customers 30% of the

respondents are in favor.

OTHERS is the company which provides least benefits to its customers just 5%

of the respondents voted for it.

85

14. Next time which brand of CNC Machine you would like to purchase if you have to purchase another CNC Machine?

0%

10%

20%

30%

40%

50%

Next Option

SONALIKA

HMT

ESCORT

ANY OTHER

Interpretation

This question was asked to check the Brand loyalty of the respondents and their thinking about HMT Machines. The response to it was very good as 45% of the respondents said they will buy SONALIKA machines.

26% of the respondents said they will go for HMT. ESCORTS 19% 5%of the people said they will buy Chinese machines or will buy second hand

machine of any company as due to high cost.

86

Chapter – 6:

Facts and Findings

87

Facts and Findings

From the survey we can find out that mostly the Machines are purchased by Large scale

industry people.

In Machine Tools industry the preference is given mainly to Price of Machine then to any other

factor.

That the people who are HMT customer are Loyal to it. But we should work to add more and

more customers.

Customers come to know about latest machines and technology through Exhibitions and Trade

fares .

That customers likes to purchase machines when offered discounts and other attractive

schemes.

Performance of Machine , After Sales Services play a important part in improving sales.

So, HMT should work on that.

88

Chapter – 7:

SWOT ANALYSIS

89

SWOT ANALYSIS

STRENGTHS

HMT brand Value.

Extensive dealership and service network.

Fully integrated plant in Pinjore.

Support of HMT in terms of deploying latest manufacturing technology, providing engineering solution and maintenance back up for trouble-free running of tractors.

Wide product range.

HMT has experienced staff.

It has adequate infrastructure, qualified manpower, office space and computer network to support its activities.

As a Govt. concern, it enjoys the full support of Govt.

Efficiency of HMT Tractors and Machines is better then other competitors.

Its brand has been well accepted in the market.

WEAKNESSES

Turnover mainly coming from single product Tractor division.

Morale of employees is not high.

Present market share other then in machine tool is very less.

Less usage of media for marketing.

Product-image among customer is not good.

Old plant requires substantial modernization

Financial health of company is poor.

Since it is a Govt. enterprise, so change in Govt. policies may affect the profitability.

90

OPPRTUNITIES

It is the biggest plant (in terms of area) among India’s manufacturers of Tractors.

Availability of cheap and liberal finance to consumers.

Multipurpose machines will offer new market for the company.

Free service camps are organized for the customer satisfaction.

It has huge network of dealership all over the country.

Provides good after sales services.

Continuous growth in Tractor Industry in the Country.

THREATS

Being a govt. undertaking its business may be affected due to change in govt. policy.

Competition from other manufacture of transport vehicle.

Not a good image of company among consumers.

Slow down of expected demand of some of its products.

Increased completion from domestic market as well as from international market.

Lack of dealership in some cities.

91

Chapter – 8:

SUGGESTIONS

92

SUGGESTIONS FOR THE COMPANY

HMT should participate in more and more Exhibitions and Trade Fairs for the promotion

of their product.

It should provide discounts to the customers like the other competitors.

It should provide attractive credit policy, so as to attract even small scale producers.

Concessions on Transportation and things like free Transit Insurance would attract

more customers .

No purchase should be made till the old stock is disposed off.

Company should take serious actions on the complaints of the buyers so that they are

fully satisfied and quality can be improved

Worker participation in management should be encouraged. Company should give

autonomy to the employees so that they can take there own decision.

93

Chapter – 9:

CONCLUSION

CONCLUSION

94

In the last, I would like to say that the market position of HMT is not so good. As the

company started 55 years back, it is competeting with new companies and holds largest

share of the Indian market which still it is running in losses it shows poor performance of

HMT workers and Management .

But the company has to do something extra to bring good image in the minds of

customers. Not only for new customer but for old customer also However according to

the survey the Machines are good.

however Machines are not performing bad in the market but to get a good position in

the market it has to give some extra ordinary performance The new HMT Machines are

performing well but due to its image of high price machine it will take some to get a

place in customer mind .Consumer service should be increased so more customer can

be attracted.

Instead of opening more dealerships the company should work on providing better after

sales services. It needs good publicity and marketing activities at the moment the only

need to run things in a proper and arranged manner which would increase the sale in a

positive manner.

95

Chapter – 10:

APPENDIX

Consumer Survey Form

96

I am undergoing summer training and this training is being conducted in lieu of partial

fulfillment of 3rd semester for the degree of MBA and means no business.

Personnel Information:

Name:

Age:

Place:

1. Do u have any CNC machine?

Yes

No

2. Are you aware of all the Major Market Players of Machine Tools?

Yes

No

3. Which Brand/Companies Machine do u own?

HMT

BFW

BATLIBOI

GERMAN MACHINE

CHINESE MACHINE

4. For how long does u have that Machine?

1-2 yrs

2-3 yrs

3-4 yrs

4-5 yrs

97

>5 yrs

5. Does price bothers you before purchasing any Machine?

Yes

No

In some cases

6. Which factor influence you the most to purchase the Machine?

Brand Image

Price

After Sales service

Life period of Machine

Any other

7. Who influences you more in buying decisions of CNC Machines?

Self

Engineers

Past experience of Machine

Other

98

8. What impact has price got on the purchase of CNC Machine?

Very High

High

Medium

Less

9. From where does u come to know about the latest Machines and technology?

Exhibitions

Trade fares

Word of mouth

Any other means

10. Are you satisfied with the after sales services of your CNC Machine?

Fully Satisfied

Satisfied

Neutral

Dissatisfied

11.Are you satisfied with its overall performance Of your Machine?

Fully Satisfied

Satisfied

99

Neutral

Dissatisfied

12.According to you which company gives most benefits to customers?

HMT

BFW

BOTLIBOI

LMW

13.Next time which brand of CNC Machine you would like to purchase if you have

to purchase another CNC Machine?

HMT

BFW

BOTLIBOI

LMW

ANY OTHER

100

Chapter – 10:

BIBLIOGRAPHY

101

BIBLIOGRAPHY

Books and Journals:

• Marketing Management: C.N. SONTAKKI

• Kotler , Principles of Marketing

• Kothari C.R., Research Methodology Methods and Techniques (Second Edition)

• HMT Machine Tools Catalogue

Web Sites:

• www.imtma.in/

• www.hmtmachinetools.com/

• www.hmtindia.com/

102

103