Ralco PROJECT REPORT.docx

7/29/2019 Ralco PROJECT REPORT.docx

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PROJECT REPORT

ON

Consumer Behaviour Towards

RALCO Products

In final fulfilment of Master of Business

Administration (MBA)

2012-14


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TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled

CONSUMER BEHAVIOUR TOWARDS RALCO PRODUCTS

c a r r i e d o u t b y t h e u nd er si gn ed h as be en

a c c o m p l i s h ed u n d er m y g u i d a n c e & s u p er v i s i o n b y

Adesh Kalia ,who is an MBA student of School of

Management Studies, Punjabi University ,Patiala. This projectis being submitted by him in the partial fulfilment of the

requirements for the award of the Master of Business

Administration from Punjabi University, Patiala .This project

report represents his original work and is worthy of

consideration for the award of the degree of Master of

Business Administration.

Mr. G.S PASSI

Sr. V.P. (MARKETING)

RALSON (INDIA) LIMITED.

G.T. ROAD, LUDHIANA.


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DECLARATION

I , hereby declare that the wor k pr esented her ei n i s

genu i ne wor k done or i ginal l y by me an d h as n ot

been pu b l i sh ed o r su bm i t t ed el sewh er e f o r th e

r equ i r emen t o f a degr ee programme. Any

l i ter atur e, data or wor ks done by other s and ci ted

within this project report has been given due

acknowledgement and l isted in the reference section.

Adesh Kalia Date-

120426177M.B.A -1(E)School of Management Studies

Punjabi University

Patiala.

Contents

ACKNOWLEDGEMENT...........................................................................................................................5

HISTORY OF TYRES.................................................................................................................................6HISTORY OF RUBBER..............................................................................................................................7


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AN INTRODUCTION TO RALSON (INDIA) LTD.........................................................................................8

HISTORY OF THE COMPANY......................................................................................8 PRESENT SCENARIO...................................................................................................8 PRODUCT RANGE.......................................................................................................9 MISSION AND VISION ..............................................................................................10 PLANT LOCATION.....................................................................................................11 INFRASTRUCTURE....................................................................................................11 R&D LAB...................................................................................................................11

o PHYSICAL SECTION.............................................................................12o CHEMICAL SECTION...........................................................................13o QUALITY CONTROL............................................................................13

QUALITY CERTIFICATION.........................................................................................14 DISTRIBUTIONAL NETWORK....................................................................................15 MAJOR CLIENTS.......................................................................................................16 EXPORTS..................................................................................................................17 GLOBAL PRESENCE..................................................................................................18 INTERNATIONAL TRADE FAIR PARTICIPATION........................................................20 AWARDS..................................................................................................................22 MAIN COMPETITORS...............................................................................................23

SWOT ANALYSIS OF THE COMPANY....................................................................................................24

UNDERSTANDING CONSUMER BEHAVIOUR.........................................................................................30

STAGES OF CONSUMER BUYING PROCESS...........................................................................................36

TYPES OF CONSUMER BUYING BEHAVIOUR.........................................................................................37

CATEGORIES THAT AFFECT CONSUMER BUYING BEHAVIOUR.............................................................38

CONCLUSION TO TOPIC........................................................................................................................43

OBJECTIVES OF STUDY..........................................................................................................................45

NEED OF STUDY....................................................................................................................................46

RESEARCH DESIGN................................................................................................................................47

RESEARCH METHODOLOGY..................................................................................................................47

TOOLS OF DATA COLLECTION...............................................................................................................48

LIMITATIONS OF STUDY........................................................................................................................49

QUESTIONNAIRE...................................................................................................................................49

REPORT OF LUDHIANA BRANCH SURVEY..............................................................................................51

ANALYSIS OF SURVEY............................................................................................52REPORT OF AMBALA BRANCH SURVEY.................................................................................................57

ANALYSIS OF SURVEY............................................................................................58REFRENCES ...........................................................................................................................................63

A RECENT TYRE SURVEY................................................ ................................................ ..................... 64

CONCLUSION TO THE PROJECT.............................................................................................................65

ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine

can substitute that which is possible while working in real situations.


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Application of theoretical knowledge to practical situations is the bonanzas of

any survey. I would like to express my sincere gratitude to all at RALSON

(INDIA) LIMITED, for giving me the opportunity to work and learn in this

organization. The knowledge and experience I have gained, is truly invaluable.

I would like to thank Mr. Sanjiv Pahwa (Chairman

cum M.D.) and Mr. G.S. PASSI (Sr V.P. MARKETING) for giving me a

chance to learn in their organisation. They have been mentors in the true sense

and a constant source of inspiration to me. Without their efforts it would have

been impossible for me to accomplish this project.

I would also like to sincerely thank my parents, fellow students and seniors

who were with me throughout the project, providing all the much needed

support .It gives me immense pleasure to acknowledge all those, who have

given me their time and energy to supply all valuable facts and opinions that has

helped in bringing out this report to fruit .Finally, I would like to thank all the

respondents and friends who were instrumental in the successful completion of

this report.

ADESH KALIA

History of tyres


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Tyres are r ing-shaped parts , e i ther pneumatic or sol id

(incl uding rubber , me tals an d plastic composites), that fit around

wheels to protect them and enhance their effect.

Pneumatic tyres are used on many types of

vehicles, such as bicycles, motorcycles, cars, trucks, earthmovers, andaircraft.

Tyres enable better vehicle performance

by providing traction, braking, steering, and load support . Tyres

form a flexible cushion between the vehicle and the road, which

smoothes out shock and makes for a comfortable ride. The earliest tires

were bands of iron (later steel), placed on wooden wheels, used on carts

a n d w a g o n s .

T h e t y r e w o u l d b e h e a t e d i n a

forge f i re , p laced over the whee l and quenched , caus ing

the metal to contract and fit tightly on the wheel. A skilled crafter,

known as a wheelwright, carried out this work. The tension of the metal

band served the purpose of holding or "tying" the wooden spokes of

the wheel together, hence the term "tyre".

In addition to tying the spokes

together, the tire also provided a wear-resistant su rf ac e to th e

perimeter of the wheel . As wheels changed over t ime, the

ter m "t yr e" continued to be used for the outer band even when itno longer served the purpose of tying the spokes together.

The word is "probably" or "perhaps"

the wheel's "tire", an obsolete version of "attire". Tire is the older

spelling, but both were used in the 15th and 16th centuries (for a

metal tire); tire became the settled spelling in the 17th century but tyre

was revived in the UK in the 19th century for pneumatic tyres,

possibly because i t was used in some patent documents, though

many continued to use tire for the iron variety. The first practical

pneumatic tyre was made by the Scot, John Boyd Dunlop, in 1887 for hisson's bicycle, in an effort to prevent the headaches his son had whilst

riding on rough roads

P n e u m a t i c t y r e s a r e m a d e o f a f l e x i b l e e l a s t o m e r m a t e

rial , such as rubber, withreinforcing materials such as fabric

and wire. Tire companies were first started in the early 20th

century, and grew in tandem with the auto industry. Today, over 1 billion

tyres


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e p r o d u c e d a n n u a l l y , i n o v e r 4 0 0 t i r e f a c t o r i e s , w i t h t h

e t h r e e t o p t i r e m a k e r s commanding a 60% global market share

HISTORY OF RUBBER

Charles Marie de La Condamine is credited with introducing

samples of rubber to the Acadmie Royale des Sciences of France

in 1736.[1] In 1751 he presented a paper by Franois Fresneau to the

Acadmie (eventually published in 1755) which described many of the

propert ies of rubber . This has been referred to as the f irst

scientific paper on rubber.

The first European to return to Portugal from

Brazil with samples of such water-repellent r u b b e r i z e d c l o t h s o

s h o c k e d p e o p l e t h a t h e w a s b r o u g h t t o c o u r t o n t h e

c h a r g e o f witchcraft. When samples of rubber first arrived in England,

it was observed by Joseph Priestley, in1770, that a piece of the

material was extremely good for rubbing out pencil marks

on paper, hence the name "rubber ".

The para rubber tree initially grew

in South America, where it was the main source of what limitedamount of latex rubber was consumed during much of the 19th

century.

About 100 years ago, its

the Congo Free State in Africa was a significant source of natural

r u b b e r l a t e x , m o s t l y g a t h e r e d b y f o r c e d l a b o r . A f t e r r e

p e a t e d e f f o r t s ( s e e H e n r y Wickham) rubber was successfully

cultivated in Southeast Asia, where it is now widely grown.

AN INTRODUCTION TO RALSON INDIA LTD.


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HISTORY OF THE COMPANY

Ralson (INDIA) Ltd. Ludhiana was started way back in year 1974 by Sh.

S.P. Pahwa , the then Chairman and his brother late Sh. O.P. Pahwa ,as

one of the first successful attempts to manufacture bicycle tyres in India.

As years rolled by Ralson grew at an astounding pace to not only lead in

the domestic sector but achieved a breakthrough in international markets

also, especially in the countries of South-Asia, Africa and middle east.

Now the mantle of leading the company has come upon Mr. Sanjiv Pahwa

who is Chairman as well as Managing Director of the company.

Today when the Indian bicycle industry is geared up to make inroads into

Europe ,Japan and U.S.A. ,the company has taken strategic decision to

implement an ambitious expansion programme which will increase its

current per day production to 1,00,000 tyres 1,50,000 tubes and 20,000

hubs. This will give Ralson an unmatched capability to offer the largest

and most comprehensive range of cycle tyres in India.

Ralson sensing demand and supply gap has opened another plant at

Doraha, 20 kms from Ludhiana .This plant makes tyres and tubes of

moped,scooter,motorcycle,auto rikshaw,tractor,jeep and light commercial

vehicles. Thus company has made deep root in automobile sector too.

PRESENT SCENARIO

Ralson is a name that stands for strength and endurance in the tire industry

with more than 40 years of experience of running on roads. The company

has grown with time and the name needs no introduction in theinternational or national market today. The dynamic and out of the league

approach of the leading front has elevated the company to new heights.

From bicycle & Automobile tyres, tubes and bicycle components, LCV

and Three Wheeler tyres we take credit of producing a soaring number of

1 lakh tyres and 1.20 lakh tubes a day.

When it comes to bicycle tyres, the

company is one of the few companies in the world which have the highest


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production rate in a day. Ralson tyres are known to be dependable, durable

and of tough built. The quality of our product is continuously upgraded

and monitored in order to offer to customer a quality product everytime.

With the launch of RALCO a few years back, the company ventured into

the hi-tech field of automobile tyres in two wheelers industry and within a

short span they have attracted a wide customer base in two-wheeler and

farm tyres markets across continents. RALCO brand has lived up to the

reputation of their customers as reflected in the growing market share of

RALCO automobile tyres.

Ralson is taping the full potential of booming global market and the

promising domestic scenario. The factory in Ludhiana is spread over a

sprawling 46 acres and employs a workforce of 4000 people. With total

turnover touching 600 crores, Ralson continues to surge ahead in domestic

and overseas tyres markets by consistently delivering innovative products,

unparalleled quality and value for money to its vast multitude of loyal

customers.

The company work as a team and deliver as a team.PRODUCT RANGE

The company have been making Cotton Tyres, Nylon Tyres forbicycle, rickshaw, MTB , ATB range.

Further in Tube range they make Natural Tubes:- Jointed Tubes Moulded Tubes Butyl Tubes

They are also a manufacturer of Automobile Tyres with the brand

name "RALCO Tyres"

MISSION AND VISION OF THE COMPANY


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MissionWe aim high, but it begins at low, we aim to run with the every two wheeler on

road. We know what we are manufacturing and how it affects you. We continue

to strive on improving the technology and to be up to date on requirements of

todays market.

While we understand that the customers are our base, we acknowledge the

support of our stakeholders. So we strive to create a winning network of

customers and suppliers. We are a brand and we know the responsibilities thatwe have on our shoulder. We remain fair and transparent in our commercial

and social dealings.

Vision

We want to be no.1 tyre manufacturer company in the eyes of our customersacross the globe. We strive to accomplish the goal of providing a wide range of

high quality tyres at affordable price and continue to further modernize and

expanding the business.

We believe in ourselves and we believe in what we deliver. We continue to

provide the excellence that we have been delivering over the years.

Plant location


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Ralson Nagar ,G.T. Road Ludhiana . Doraha (20 kms from Ludhiana)

Infrastructure

Ralson (India) Limited has one of the state of art infrastructure in

the bicycle tyre & tube manufacturers industry. Ralson is most trusted

brand with 4 decades of manufacturing expertise. Under expansion plan

Ralson has created an additional facility to manufacture Two Wheeler,

Three Wheeler and farm tyres etc. under brand name RALCO". With

latest technology adapted in the manufacturing and state of artinfrastructure the company is able to give a mammoth production. The

factory in Ludhiana is spread over a sprawling 46 acres and employs a

workforce of 4000 people. The company produces

115,000 cycle tyres a day and around 30 lacs cycle tyres a month.

1,25,000 cycle tubes a day which makes 32.5 lacs per month.

2000 Auto tyres per day & 50,000 per month

Ralson Group has world class equipments and machineries with

deployment of best process & practices and R&D facility.

R&D LabThe Company has learnt that with the change of the region

the need for the different product is inevitable. That's why the people

at Ralson try constantly to work on the innovative products and keep

experimenting to increase the safety in riding. Ralson Group has world

class equipments and machineries with deployment of best process &

practices and R&D facility. With R&D Lab accredited by Department of

Science & Technology, Govt. of India the company ensures that for the

meeting of quantity numbers the quality is never compromised. The R&D

lab is one of the most sophisticated and best equipped R&D set-ups in


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cycle tyre industry in India for testing equipments for Raw Materials,

semi-finished & finished product testing & evaluation.

Ralson's R & D is crucial for:

1. Innovation

2. Safety

3. Environmental excellence

4. Quality productivity

5. Energy conservation

6. Up gradation of technology for export promotion

7. Developing new products and processes

8. Improving existing products and services

9. Goal oriented together with cost effective

10. Active implementation/commercialization of the technological

development.

The R & D department of Ralson consists of two sections

A. Physical Section

B. Chemical Section

PHYSICAL SECTION

Ralson has a vast range of machines to determine the required

characteristics of the rubber compounds, physical properties of

finished products and various other materials used during the tyre

manufacturing process. Listed below is the assorted range of

machines used for the testing of the materials along with a brief detail of

their functions .

Rheometer : This machine is used to study reological

propert ies of the f inal batch to ascertain curing time of

particular compound at a present temperature. This machine assists

in developmental work as well as in quality control purposes.

Viscometer: This machine is used to test viscosity of compounds. This

machine assists in developmental work as well as in quality control

purposes.

De-Metia Flex Testing Machine: This is used for checking the

cracks growth rate number in rubber compound.

Tensile Tester: Used for testing tensile strength, modulus, elongation at break, permanent set of compounds as well as finished products.


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Tensile Tester: Used for testing breaking load, elongations at

break of cotton as well as nylon yarn.

Texture Testing Machine: Used for testing the tex/count of cotton yarn.CHEMICAL SECTION

The initial chemical testing and structural development of the rubber

samples are described below

Ageing Tester: This machine is for testing ageing properties of

compounds as well as of finished products, during which test samples are

subjected to hot circulating air of certaintemperature hours .

Moisture Analyzer: Used to determine the moisture content present inmaterial.

Solvent Extractor: To determine the oil content of the rubber sample.

Ph- Meter: Used to determine PH value of raw material used in tyre

manufacturing. While these machines are used to determine

and evaluate the physical and chemical characteristics of

the compound used in the tyre and tube manufacturing processes thecompany have the tyre endurance testing machines to determine

thee n d u r a n c e a n d l o n g e v i t y o f t h e f i n i s h e d p r o d u c t s .

The company has two type of endurance testing machines

Tyre Performance Machine: The machine tests the endurance of

tyres according to ISIspecification.

Endurance Testing Machine: This machine ensures that the tyres clear the minimum prescribed limits of running time as per R & D specifications

Quality Control


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Ralson believes in Quality in Quantity. The company is the first and only

Bicycle Tyre manufacturer in India to be accredited with an ISO 9001

Certification. By providing unmatched quality and ample options we

ensure that customer expectations are always and fully met. Ralson tyres

are dependable, durable and tough built. In Ralson factory, the quality

assurance process starts functioning right from the raw-material entry

stage and continues up to the packing of final tyres and tubes. The quality

is continuously upgraded and monitored in order to offer to the customer a

product which is comparable to the best available anywhere. The company

regularly lends its tyres to rally and motocross riders to test their

ruggedness over different types of terrains and weather conditions.

Physical Strength: Our tyres are tested for their strength and ruggedness

on different kinds of roads, RALCO automobile tyres are outstanding for

their range, reliability and sturdiness and are creating new standards of

durability, riding comfort and road-grip. The company regularly lends its

tyres to rally and motocross riders to test their ruggedness over different

types of terrains and weather conditions. They are tested on standards of

Strain, Endurance, Flex & Fatigue, air permeability etc.

Robust Process Control Separate Rapid Control Laboratory is

equipped with Rheometers Viscometers and Sp. Gr. Balance to test &

release 100% batches for better product reliability and consistency.

Quality Certification


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The company is an ISO 9001:2008 certified by M/s Intertek Moody

International. Apart from this we have other prestigious certifications with

us like BIS and we are striving to achieve EN certification as well. Our

R& D Lab is recognized by DSIR.

Distributional Network

Having a network of our own 31 branch offices & 13 C & F agents with a

strong base of 5000 dealers, the companys product is available in every nook &

corner of the country and the company has developed an unparalleled reach &availability to its customers. The company is consistently delivering innovative

products, unparallel quality and value for money to its vast multitude of loyal

customers. For sale or after sale, the company stays close at hand and are

available wherever the customer may be located, the company is always at

service. It is the companys endeavour to continuously upgrade and monitor

their quality to offer to the customers a product which is comparable to the best

available anywhere.


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Major Clients:

RalsonRALCO is the most favoured brand of major OEMs like HEROAVONT.IATLAS & other prominent bicycle manufacturers of India. With

our quality products, the company has been able to win the confidence ofour

clients.


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Exports

Ralson is a brand that has been tried and tested by millions. Ralson tires

are fabricated to meet the demands of the global customers equally.

With the companys quality standards marked high, the company is

catering to the international market and thankfully standing upright on our

client's and customers expectations.

Ralson is a brand that is trusted by millions and there are several countrieswhere its products are exported. Meeting the global requirements is not

easy and its need not be explained that with the change of the region and

environment, demand for a specific product rises. Be in the demand for

special designs, size, shape, and quality, we have been able to mark our

presence in the global market, by meeting the customers demands the

company has been able to give them the product that matches the Global

Standards. This world is very big and different and there are many places

where it would be difficult to find a road. But the company is covering


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most of it under the safety and quality of its manufactured tires.

Ralson tyres and tubes are exported to the countries of Latin America,

South America, Africa, Middle-East & Far East, in the year 2010-2011,

companys export turnover stood at Rs. 94 crores. The company is proud

winner of the CAPEXIL top exporter award in cycle tyre category from

last several years for leading exports of bicycle tyres.

Ralson exports Tires and Tubes to over 60 Countries in Latin South

America, Europe, Middle East, Africa and the Pacific Region. These

markets are serviced by our Ludhiana office in INDIA.

Global Presence

Ralson has taken up the challenge in delivering quality tyres, tubes and

components to demanding markets abroad. We have already made

our presence felt in the various countries of Africa, Gulf, Latin America

and South Asia. Ralsons outstanding performance in export has also been

applauded by Government of INDIA by way of the CAPEXIL TOP

EXPORTS AWARDS.

Ralson products are not sought after by overseas buyers for their price,

rather Ralson has been successful in creating a brand image of quality,

innovation and workmanship. Ralson has an unmatched capability to

custom make tyres, tubes and components for its overseas buyers.

THE COMPANY HAS CUSTOMERS IN-

Afganistan

Argentina

Bangladesh


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Bahrain

Bolivia Kenya

Brazil kuwaitBurkina Faso Lebanon

Cameroon Malawi

Chad Mexico

Chile Maldives

Colombia Mali

Congo Morocco

Costa rica Mozambique

Denmark Namibia

Egypt Nigeria

France Oman

Ghana Panama

Guatemala Paraguay

Holland Portugal

Honduras Pakistan

Hungary Senegal

Indonesia South Africa

Iran Saudi Arabia

Italy Spain

Iraq Sri Lanka

Ivory coast Syria


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Jordan Sweden

TanzaniaTrinidad,Tobago

Tunisia

Turkey

U.A.E.

Uganda

U.S.A

Ukraine

Uzbekistan

Venezuala

Yemen

Zambia

Zimbabwe

International Trade Fair participation

Promotion by trade fairs is important for any business. They are a podium

to exhibit the latest products, any experiments study activities. Also they

help in the exposure of product to the industry environment and to take a

feel of the latest trends in the market. Ralson continuously participate in

the national and international trade fairs and we have won the appreciation

of our peer industries.


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Some of the trade fairs where the company demonstrated its products are:

INTERBIKE INTERNATIONAL BICYCLE EXPO

(LAS VEGAS, U.S.A)

IFMA

(KOLN, GERMANY)

EICMA

(MILAN, ITALY)

TAIPEI CYCLE SHOW

(TAIWAN)


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CHINA CYCLE SHOW

(CHINA)

VELOPARK

(MOSCOW, RUSSIA)

VELOBIKE

(KIEV, UKRAINE)

AWARDS

Innovations at Ralson have been acknowledged substantially and from

time to time. Ralson has won many awards and accolades for its

performance. We have not only won the industrial services awards but also

for handling our community services well.

Details of Certifications/Awards & Achievements


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The company is proud of winning the CAPEXIL top exporter award in

cycle tyre category from last three years. Ralson brand is a Govt. of India

recognized "EXPORT TRADING HOUSE".

Special Export awards by CAPEPC

Ralson has won National Safety Awards. MANUFACTURE OF RUBBER

& PLASTIC PRODUCTS

Best Supplier and Quality Champion awards from OEM.

MAIN COMPETITORS OF RALSON (INDIA) LTD.

INTERNATIONAL TYRES METRO TYRES


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BEDROCK TYRES HINDUSTAN TYRES

SWOT ANALYSIS OF THE COMPANY

Definition of SWOT

By specifying clear objectives and identifying internal and externalfactors that are either helpful or not, a short and simple SWOT

analysis is a useful resource which may be incorporated into an

organizations strategic planning model.

SWOT Analysis

Strengths- Internal attributes that are helpful to the organization toachieving its objective

WeaknessesInternal attributes that are harmful to the organizationto achieving its objective

OpportunitiesExternal factors that help the organization achieveits objective

Threats - External factors that are harmful to the organization toachieving its objective.


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After identifying the SWOTs, identification of the factors and their

interdependence helps clarify the steps needed to achieve the ending

objectives.

Advantages of SWOT Analysis

SWOT Analysis is instrumental in strategy formulation and selection. It isa strong tool, but it involves a great subjective element. It is best when

used as a guide, and not as a prescription.

Successful businesses build on their

strengths, correct their weakness and protect against internal weaknesses

and external threats. They also keep a watch on their overall business

environment and recognize and exploit new opportunities faster than its

competitors.

SWOT Analysis helps in strategic planning in following manner:-

It is a source of information for strategic planning. Builds organizations strengths. Reverse its weaknesses. Maximize its response to opportunities. Overcome organizations threats. It helps in identifying core competencies of the firm. It helps in setting of objectives for strategic planning. It helps in knowing past, present and future so that by using past and

current data, future plans can be chalked out.


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SWOT Analysis provide information that helps in synchronizing the firms

resources and capabilities with the competitive environment in which the

firm operates.


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Limitations of SWOT Analysis

SWOT Analysis is not free from its limitations. It may cause organizations

to view circumstances as very simple because of which the organizations

might overlook certain key strategic contact which may occur. Moreover,

categorizing aspects as strengths, weaknesses, opportunities and threats

might be very subjective as there is great degree of uncertainty in market.

SWOT Analysis does stress upon the significance of these four aspects,

but it does not tell how an organization can identify these aspects for itself.


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There are certain limitations of SWOT Analysis which are not in control

of management. These include:-

Price increase Inputs/raw materials Government legislation Economic environment Searching a new market for the product which is not having overseas

market due to import restrictions, etc.

Internal limitations may include:-

Insufficient research and development facilities Faulty products due to poor quality Lack of skilled labour Poor facilities.

SWOT ANALYSIS OF RALSON (INDIA) LIMITED

Having an in depth view on the company one can do the swot analysis of

this company. The swot analysis is a very useful tool at the hands of the

management if done properly and if acted upon its weaknesses and threats

a company can grow and make profits. An internal and external

assessment of company is very important for any business and should be

done from time to time.

STRENGHTS

Following are the strengths of Ralson (India) ltd.

Company has a very strict quality control policy which ensures theproduction of best quality products.


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Company has a very big production base for manufacturing bicycletyres.

The company has got Hero cycles, Atlas ,Avon cycles as its OEMsThe company possesses a very sound dealer network all over the

country.

Its a 100% internally financed company. The amount of borrowedcash is very less.

The company has the biggest R&D facility in the industry. Its R&Ddepartment is recognised by Department of Science, Govt of India.

The company has employed the best and latest technologies since itsinception. Its been using SAP system since 2001. These practices

have increased the productivity of employees.It has recently become the first company to manufacture tyres

conforming to ISI standards.

Ralson tyres have highest sales in market in spite of high prices.Over the years the company has established a loyal brand name for

itself which is its strengths.

WEAKNESS

Like the two sides of a coin everything has two perspectives. Same is the case

with Ralson (INDIA) Ltd. The company has weaknesses as listed below.

Lack of market researchThe plant could have been made fully automatic but it still requires huge

workforce for its full execution. During my plant visit I observed that

there was a huge labour turnout and the plant was running to just 50% of

its capability. This leads to very low production and the demand exceeds

supply. The customers of the company had delays in supply of their

order. Those customers will go to other companies to get tyre

inventories. Hence this gives other companies a chance to eat RALCOs

share of market. Also dealers said that Metro and international tyres are

giving RALCO a stiff competition.


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Although the quality control of the company is very strict it stillproduces defected tyres and tubes in the order of 2-3% of total

production. This is a significant number when converted to real numbers

since production is very high .This can be reduced further.

After the survey it was also found out that the dealers of the company areunsatisfied and this is an area where company should pay attention to.

The dealers should be satisfied because they are the ones who sell the

product to retailers and consumers.

Because of low margins the dealers lack motivation to sell RALCOtyres.

OPPURTUNITIES

The company has many opportunities on which it can capitalise to grow in

future

There is a huge demand for RALCO cycle tyres in domestic market.Because of globalisation international opportunities for exports have

opened up.

Company is also having huge opportunities in other tyre segments.THREATS

The company faces threats which are listed below

The major chunk of labour working in the company comes from stateslike Bihar and Uttar Pradesh. Due to industrialisation in these states the

company faces acute labour shortage now-a-days.

Increase in prices of raw material Increase in price of power and labour. Incoming of foreign products and technologies ex. Chinese tyres.


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UNDERSTANDING CONSUMER BEHAVIOUR

Consumer behaviour is the study of individuals, groups, or organizations

and the processes they use to select, secure, and dispose of products,

services, experiences, or ideas to satisfy needs and the impacts that theseprocesses have on the consumer and society. It blends elements from

psychology,sociology,social anthropology and economics. It attempts to

understand the decision-making processes of buyers, both individually and

in groups. It studies characteristics of individual consumers such as

demographics and behavioural variables in an attempt to understand

people's wants. It also tries to assess influences on the consumer from

groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with

the customer playing the three distinct roles of user, payer and buyer.

Research has shown that consumer behaviour is difficult to predict, even

for experts in the field. Relationship marketing is an influential asset for

customer behaviour analysis as it has a keen interest in the re-discovery of

the true meaning of marketing through the re-affirmation of the

importance of the customer or buyer. A greater importance is also placed

on consumer retention, customer relationship management,

personalisation, customisation and one-to-one marketing. Social functionscan be categorized into social choice and welfare functions.

The observation shows the interaction of stimuli, consumer characteristics,

decision process and consumer responses. It can be distinguished between

interpersonal stimuli (between people) or intrapersonal stimuli (within

people). The focus is not set on the processes inside a consumer, but the

relation between the stimuli and the response of the consumer.

The marketing stimuli are planned and

processed by the companies, whereas the environmental stimulus is given

by social factors, based on the economical, political and cultural

circumstances of a society. The buyers decision contains the buyer

characteristics and the decision process, which determines the buyers

response.
https://en.wikipedia.org/wiki/Psychologyhttps://en.wikipedia.org/wiki/Sociologyhttps://en.wikipedia.org/wiki/Social_Anthropologyhttps://en.wikipedia.org/wiki/Anthropologyhttps://en.wikipedia.org/wiki/Economicshttps://en.wikipedia.org/wiki/Demographichttps://en.wikipedia.org/wiki/Consumerhttps://en.wikipedia.org/wiki/Relationship_marketinghttps://en.wikipedia.org/wiki/Social_choicehttps://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Social_choicehttps://en.wikipedia.org/wiki/Relationship_marketinghttps://en.wikipedia.org/wiki/Consumerhttps://en.wikipedia.org/wiki/Demographichttps://en.wikipedia.org/wiki/Economicshttps://en.wikipedia.org/wiki/Anthropologyhttps://en.wikipedia.org/wiki/Social_Anthropologyhttps://en.wikipedia.org/wiki/Sociologyhttps://en.wikipedia.org/wiki/Psychology


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Environmental factors

Marketing Stimuli Product Price Place Promotion

Environmental Stimuli Economic Technological Political Cultural Demographic

Buyer Characteristics Attitudes Motivation

Perceptions Personality Lifestyle Knowledge

Decision Process Problem recognition Information search

Purchase decision Post-purchase behaviour

Buyer's response Product choice Brand choice Dealer choice Purchase timing Purchase amount


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The experts consider the buyers response as a result of a conscious,

rational decision process, in which it is assumed that the buyer has

recognized the problem. However, in reality many decisions are not made

in awareness of a determined problem by the consumer.

Information search

Once the consumer has recognised a problem, they search for information

on products and services that can solve that problem. Experts explain that

consumers undertake both an internal (memory) and an external search.

Sources of information include personal sources and experience, and

commercial and public sources.

The relevant internal psychological process associated with information

search is perception, which can be defined as "the process by which an

individual receives, selects, organises, and interprets information to create

a meaningful picture of the world". Consumers tendency to search for

information on goods and services makes it possible for researchers to

forecast the purchasing plans of consumers using brief descriptions of the

products of interest.

The selective perception process can be divided into:-

Selective exposure: consumers select which promotional messagesthey will expose themselves to.

Selective attention: consumers select which promotional messagesthey will pay attention to.

Selective comprehension: consumer interprets messages in linewith their beliefs, attitudes, motives and experiences.

Selective retention: consumers remember messages that are moremeaningful or important to them.

The implications of this process help to develop an effective promotional

strategy, and suggest which sources of information are more effective for

the brand.

Evaluation of alternatives

At this time the consumer compares the brands and products that are intheir evoked set. The evoked set refers to the number of alternatives that
https://en.wikipedia.org/wiki/Perceptionhttps://en.wikipedia.org/wiki/Perception


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are considered by consumers during the problem-solving process.

Sometimes also known as consideration, this set tends to be small relative

to the total number of options available. How can the marketing

organisation increase the likelihood that their brand is part of the

consumer's evoked set? Consumers evaluate alternatives in terms of thefunctional and psychological benefits that they offer. The marketing

organisation needs to understand what benefits consumers are seeking and

therefore which attributes are most important in terms of making a

decision. It also needs to check other brands of the customers

consideration set to prepare the right plan for its own brand.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to makea purchase decision. Sometimes purchase intention does not result in an

actual purchase. The marketing organisation must facilitate the consumer

to act on their purchase intention. The organisation can use a variety of

techniques to achieve this. The provision of credit or payment terms may

encourage purchase, or a sales promotion such as the opportunity to

receive a premium or enter a competition may provide an incentive to buy

now. The relevant internal psychological process that is associated with

purchase decision is integration. Once the integration is achieved, the

organisation can influence the purchase decisions much more easily.

There are 5 stages of a consumer buying process. They are:

a) The problem recognition stage, meaning the identification ofsomething a consumer needs.

b)The search for information, which means you search yourknowledge bases or external knowledge sources for information on

the product.

c) The possibility of alternative options, meaning whether there isanother better or cheaper product available.

d)The choice to purchase the product.e) Then finally the actual purchase of the product.

This shows the complete process that a consumer will most likely, whether

recognisably or not, go through when they go to buy a product.


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Post purchase evaluation

The experts suggested there should be a feedback loop, of the buying

behaviour. They further suggest the importance of the post purchase

evaluation and that it is the key because of its influences on futurepurchase patte

Other influences

Consumer behaviour is influenced by internal conditions such as

Psychographics (lifestyle) Personality Motivation Knowledge Attitudes Beliefs Feelings.

Psychological factors include

An individuals motivation Perception, Attitude and belief,

Personal factors include

Income level, Personality Age

Occupation Lifestyle.

Congruence between personality and the way a persuasive message is

framed (i.e., aligning the message framing with the recipients personality

profile) may play an important role in ensuring the success of that

message.

In a recent experiment, five advertisements (each designed to target one of

the five major trait domains of human personality) were constructed for asingle product. The results demonstrated that advertisements were
https://en.wikipedia.org/wiki/Psychographicshttps://en.wikipedia.org/wiki/Personalityhttps://en.wikipedia.org/wiki/Motivationhttps://en.wikipedia.org/wiki/Motivationhttps://en.wikipedia.org/wiki/Personalityhttps://en.wikipedia.org/wiki/Psychographics


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evaluated more positively the more they covered with participants

dispositional motives. Tailoring persuasive messages to the personality

traits of the targeted audience can be an effective way of enhancing the

messages impact.

Behaviour can also be affected by external influences, such as

culture sub-culture locality Royalty ethnicity Family social class past experience reference groups Lifestyle Market mix factors.

Definition of Buying Behaviour

Buying Behaviour is the decision processes and acts of people involved inbuying and using products.

Need to understand:

Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society.

Consumer Buying Behaviour refers to the buying behaviour of the ultimateconsumer. A firm needs to analyze buying behaviour for:

Buyers reactions to a firms marketing strategy has a great impact on thefirms success.

The marketing concept stresses that a firm should create a marketing mixthat satisfies (gives utility to) customers, therefore need to analyze the what,

where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketingstrategies.
https://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/Sub-culturehttps://en.wikipedia.org/wiki/Sub-culturehttps://en.wiktionary.org/wiki/localityhttps://en.wiktionary.org/wiki/localityhttps://en.wikipedia.org/wiki/Ethnicityhttps://en.wikipedia.org/wiki/Ethnicityhttps://en.wikipedia.org/wiki/Social_classhttps://en.wikipedia.org/wiki/Social_classhttps://en.wikipedia.org/wiki/Social_classhttps://en.wikipedia.org/wiki/Ethnicityhttps://en.wiktionary.org/wiki/localityhttps://en.wikipedia.org/wiki/Sub-culturehttps://en.wikipedia.org/wiki/Culture


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Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex

decisions). Actual purchasing is only one stage of the process. Not all

decision processes lead to a purchase. All consumer decisions do not alwaysinclude all 6 stages, determined by the degree of complexity...discussed

next.

The 6 stages are:

1.Problem Recogni tion(awareness of need)--difference between the desiredstate and the actual condition. Deficit in assortment of products. Hunger--

Food. Hunger stimulates your need to eat.

Can be stimulated by the marketer through product information--did notknow you were deficient? I.E., see a commercial for a new pair of shoes,

stimulates your recognition that you need a new pair of shoes.

2. I nformation search- This includes two typeso Internal search, memory.o External search if you need more information. Friends and relatives (word

of mouth). Marketer dominated sources; comparison shopping; publicsources etc.

A successful information search leaves a buyer with possible alternatives,

the evoked set.

3.Evaluation of Alternatives-- Need to establish criteria for evaluationfeatures the buyer wants or does not want. Rank/weight alternatives or

resume search.

Youmay decide that you want to eat something spicy, Indian gets highest

rank. If not satisfied with your choice then returns to the search phase. Can

you think of another restaurant? Look in the yellow pages etc. Information

from different sources may be treated differently. Marketers try to

influence by "framing" alternatives.

4.Purchase decision-Choose buying alternative, includes product, package,store, method of purchase etc.


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5.Purchase--May differ from decision, time lapse between 4 & 5, productavailability.The purchase is done always in such a way that it satisfies need

of the consumer.

6.Post-Purchase Evaluation--Outcome: Satisfaction or Dissatisfaction thiscan be reduced by warranties, after sales communication etc.

After eating an Indian meal, may think that really you wanted a Chinese

meal instead.

Types of Consumer Buying Behaviour

Types of consumer buying behaviour are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek

information about a certain products and brands but virtually ignores others.

Personal risk Social risk

Economic risk

The four type of consumer buying behaviour are:

Routine Response/Programmed Behaviour--buying low involvementfrequently purchased low cost items; need very little search and decision

effort; purchased almost automatically. Examples include soft drinks, snack

foods, milk etc.

L imi ted Decision Making--buying product occasionally. When you need toobtain information about unfamiliar brand in a familiar product category,perhaps. Requires a moderate amount of time for information gathering.

Examples include Clothes--know product class but not the brand.

Extensive Decision M aking--Complex high involvement, unfamiliar,expensive and/or infrequently bought products. High degree of

economic/performance/psychological risk. Examples include cars, homes,

computers, education. Spend a lot of time seeking information and

deciding.

Information from the companies MM; friends and relatives, store personnel

etc. Go through all six stages of the buying process.


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Impulse buying, no conscious planning.The purchase of the same product does not always elicit the same Buying

Behaviour. Product can shift from one category to the next

For example: Going out for dinner for one person may be extensivedecision making (for someone that does not go out often at all), but limited

decision making for someone else. The reason for the dinner, whether it is

an anniversary celebration, or a meal with a couple of friends will also

determine the extent of the decision making.

Categories that Affect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following

three factors: Personal Psychological Social

Personal

Unique to a particular person. Demographic Factors. Sex, Race, Age etc.

Who in the family is responsible for the decision making?

Young people purchase things for different reasons than older people.

Psychological factors

Psychological factors include:

Motives--A motive is an internal energizing force that orients a person's activities

toward satisfying a need or achieving a goal.

Actions are effected by a set of motives, not just one. If marketers can

identify motives then they can better develop a marketing mix.

o Physiologicalo Safetyo Love and Belongingo Esteemo Self Actualization
http://www.udel.edu/alex/chapt6.html#personalhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#personal


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Need to determine what level of the hierarchy the consumers are apt to

determine what motivates their purchases.

Perception--

What do you see?? Perception is the process of selecting, organizing and

interpreting information inputs to produce meaning. IE we chose what info

we pay attention to, organize it and interpret it.

Information inputs are the sensations received through sight, taste, hearing,

smell and touch.

Selective Exposure-select inputs to be exposed to our awareness. More

likely if it is linked to an event, satisfies current needs, intensity of inputchanges (sharp price drop).

Selective Distortion-Changing/twisting current received information,

inconsistent with beliefs.

Selective Retention-Remember inputs that support beliefs, forgets those

that don't.

Ability and Knowledge--Need to understand individuals capacity to learn. Learning, changes in a

person's behaviour caused by information and experience. Therefore to

change consumers' behaviour about your product, need to give them new

information. When making buying decisions, buyers must process

information.

Knowledge is the familiarity with the product and expertise.

Inexperience buyers often use prices as an indicator of quality more than

those who have knowledge of a product.

Non-alcoholic Beer example: consumers chose the most expensive six-

pack, because they assume that the greater price indicates greater quality.

Learningit is the process through which a relatively permanent change in

behaviour results from the consequences of past behaviour.


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Attitudes--Knowledge and positive and negative feelings about an object oractivity-maybe tangible or intangible, living or non- living, etc.

Individual learns attitudes

through experience and interaction with other people. Consumer attitudestoward a firm and its products greatly influence the success or failure of the

firm's marketing strategy.

Personality--

All the internal traits and behaviours that make a person unique, uniqueness

arrives from a person's heredity and personal experience. Examples include:

o Workaholicso Compulsivenesso Self confidenceo Friendlinesso Adaptabilityo Ambitiousnesso Dogmatismo Authoritarianismo Introversiono Extroversiono Aggressivenesso Competitiveness.

Traits affect the way people behave. Marketers try to match the store image

to the perceived image of their customers.

There is a weak association between personality and Buying Behaviour; this

may be due to unreliable measures. Nike ads. Consumers buy products thatare consistent with their self concept.

Lifestyles--Recent US trends in lifestyles are a shift towards personal independence

and individualism and a preference for a healthy, natural lifestyle.

Lifestyles are the consistent patterns people follow in their lives.


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Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders,

person's family, reference groups, social class and culture.

Opinion leaders--Marketers try to attract opinion leaders...they actually use (pay)

spokespeople to market their products. Michael Jordon (Nike, McDonalds,

Gatorade etc.)

Roles and Family Influences--Role is the things you should do based on the expectations of you from your

position within a group. People have many roles.

Husband, father, employees. Individuals role are continuing to change

therefore marketers must continue to update information.

Family is the most basic group a person belongs to. Marketers must

understand:

that many family decisions are made by the family unit consumer behaviour starts in the family unit family roles and preferences are the model for children's future family (can

reject/alter/etc)

family buying decisions are a mixture of family interactions and individualdecision making

family acts an interpreter of social and cultural values for the individual.

Reference Groups--Individual identifies with the group to the extent that he takes on many of thevalues, attitudes or behaviours of the group members.

Families, friends, civic and professional organizations. Any group that has a

positive or negative influence on apersons attitude and behaviour .Membership

group (belong to) Affinity marketing is focused on the desires of consumers thatbelong to reference groups.

Marketers get the groups to approve the product andcommunicate that approval to its members. The degree to which a reference


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group will affect a purchase decision depends on an individuals susceptibility toreference group influence and the strength of his/her involvement with the group.

Social Class--An open group of individuals who have similar social rank. This depends uponfollowing criteria

Occupation Education Income Wealth Race ethnic groups possessions

Social class determines to some extent, the types, quality, and quantity ofproducts that a person buys or uses.

Lower class people tend to stay close to home when shopping; do not engage inmuch pre purchase information gathering. Stores project definite class images.

Family, reference groups and social classes are all social influences on consumerbehaviour. All operate within a larger culture.

Culture and Sub-culture--Culture refers to the set of values, ideas, and attitudes that are accepted by ahomogenous group of people and transmitted to the next generation.

Culture also determines what is acceptable with product advertising. Culturedetermines what people wear, eat, reside and travel.

Cultural values in the US are good health, education, individualism and freedom.

In American culture time scarcity is a growing problem. IE change in meals. Bigimpact on international marketing.

Different society, different levels of needs, different culturalvalues.


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Cul tur e can be divided into subcul tur es:

Geographic regions Human characteristics such as age and ethnic background.

Culture affects what people buy, how they buy and when they buy.

Let us go through the following example:

Both Maria and Sandra went to the nearby shopping mall to buy dresses forthemselves. The store manager showed them the best dresses available with him.

Maria immediately purchased two dresses but Sandra returned home empty

handed. The dresses were little too expensive for Sandra and she preferred simpleand subtle designs as compared to designer wears available at the store.

In the above example Sandra and Maria had similar requirements but there was ahuge difference in their taste, mind set and ability to spend.

CONCLUSION TO TOPIC

Consumer Behaviour is a branch which deals with the various stages a consumergoes through before purchasing products or services for his end use.

Why do you think an individual buys a product?

Need Social Status Gifting Purpose

Why do you think an individual does not buy a product?

No requirement Income/Budget/Financial constraints Taste

When do you think consumers purchase products?

Festive season Birthday Anniversary Marriage or other special occasions

There are infact several factors which influence buying decision of a consumer

ranging from psychological, social, and economic and so on.


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In a laymans language consumer behaviour deals with the buying behaviour ofindividuals.

The main catalyst which triggers the buying decision of an individual is need fora particular product/service.

Consumers purchase products and services as and when need arises.

According to Belch and Belch, whenever need arises; a consumer searches forseveral information which would help him in his purchase.

Following are the sources of information:

Personal Sources Commercial Sources Public Sources Personal Experience

Perception also plays an important role in influencing the buying decision ofconsumers.

Buying decisions of consumers also depend on the following factors:

Messages, advertisements, promotional materials, a consumer goes through alsocalled selective exposure.

Not all promotional materials and advertisements excite a consumer. A consumerdoes not pay attention to everything he sees. He is interested in only what he

wants to see. Such behaviour is called selective attention.

Consumer interpretation refers to how an individual perceives a particularmessage.

A consumer would certainly buy something which appeals him the most. Hewould remember the most relevant and meaningful message also called asselective retention. He would obviously not remember something which hasnothing to do with his need.


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OBJECTIVES OF THE STUDY

To critically evaluate and study the various aspects of on which consumerbehaviour depends.

To study the perception of consumers regarding RALCO tyres

To study the various ways in which company can deliver more value toits customer and dealers.

To critically examine the awareness level and satisfaction level in mindsof the consumer.

To study other factor namely brand name ,brand loyalty ,etc on whichconsumers purchasing d decision depends

To study various factors on which consumer buying decision depends To analyse the areas on which consumer behaviour towards the company

can be further improved


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NEED OF STUDY

The question arises that what was the need of studying the topic Consumer

Behaviour Towards Ralson products. This is important because the

management of a company needs to know what factors affect the purchasing

decision of a consumer. In todays world the consumer is the king. Only that

company survives which makes products satisfying needs, wants and desires of

its consumers. So this topic becomes highly relevant in todays competitive

world. The consumer these days has got a lot of alternatives which he will

choose according to his needs.

To understand what consumers want, what they value,

whats their preference one must try to understand what consumers buy, why

they buy, from where they buy and when they buy. So todays marketing starts

with having a look at consumer.

To study what attitude does the consumer has towards

your brand, what perception has a consumer got in his mind regarding your

brand, etc you must do a real assessment of consumer behaviour towards your

brand. Also this will let you that whether your marketing mix is appropriate or

needs to be changed according to consumer needs.

Also many other factors like demographic ,societal ,

Natural, psychological, personal, environmental, etc effect the buying decision

of the consumer which must be kept in mind to market the product correctly,

otherwise it will lead to mis interpretation of companys market size. The

company make a product keeping the needs and functionality of the user in

mind. Any extras will increase the cost and will not be accepted by consumer.


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RESEARCH DESIGN

Research Methodology is a method to solve the research problems

systematically. It guides us in conducting the research scientifically. It consists

of different steps that the generally adopted by the researcher to study theresearch problem along with logic behind them.

RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the

investigation of matter. The primary purpose for applied research is discovering,

interpreting, and the development of methods and systems for the advancement

of human knowledge on a wide variety of scientific matters of our world and the

universe.

The term research is also used to describe an entire collection of information

about a particular subject. Necessity is the mother of invention

Methodology is the method followed while conducting the study on a particular

project. Through this methodology a systematic study is conducted on the basis

of which the basis of a report is produced.

It is a written game plan for conducting Research. Research methodology has

many dimensions. It includes not only the research methods but also considers the

logic behind the methods used in the context of the study and explains why only a

particular method or technique has been used. It also helps to understand the

assumptions underlying various techniques and by which they can decide thatcertain techniques will be applicable to certain problems and other will not.

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

methodology for the problem as the some may differ from problem to problem.

Sampling Design: Sampling is a process of selecting a sufficient number of

elements from the population. Convenience sampling is used in this survey.


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Sample size: The sample size refers to the number of individual smallest

entities which have been consulted to do this survey.

Sample unit: One individual dealer is sample unit for the survey

Research Design: Descriptive research design has been used with rigid set of

steps followed.

TOOLS OF DATA COLLECTION

For this study, data has been collected from two sources:

PRIMARY DATA are those which are collected a fresh and for the firsttime. In this study, has been collected through personal contact.

Questionnaire was used to collect primary data from respondents. Survey

participants were given a questionnaire asking them to fill 13 questions,

and also their suggestions and feedback was recorded. The response

formed the basis of analysis and conclusion to the entire research.

SECONDARY DATA are those which have already been collected bysomeone else. In this study, secondary source data has been collected

mostly from the company websites, company handouts and few books too.

LIMITATIONS OF THE STUDY

Sources of

data

collection

Primary

Source

Secondary

Source


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The time period of research was very short. Convenient sampling was used as the mode of conducting the research,

which could not fetch me with worthy respondents.

Size of the research may not be substantial as sample size is only 50 andit does not represent whole population.

People may not have been true in answering various questions and maybe biased to certain other questions.

In a rapidly changing industry, analysis on one day or in one segment canchange very quickly. The environmental changes are vital to be

considered in order to assimilate the findings.

Some respondents were reluctant to divulge personal information,especially the gals, which can affect the validity of all responses.

The dealers may be biased in their opinion regarding the company.

QUESTIONNAIRE

Name of the dealer-

Phone number-

Address-

1. What type of business are you in?a) Wholesaleb) Semiwholesalec) Retail

2. Which companies do you deal with?a) RALCOb) Internationalc)

Metro

d) Bedrock


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e) Hindustanf) Others

3. For how many years have you been associated with RALCO?a) Less than five yearsb) More than five years

4. Are the customers aware of RALCO products?a) Awareb) Not aware

5. The consumer demand is driven bya) Brand loyaltyb) Best qualityc) Best durabilityd) Most reasonably priced

6. Customers buy RALCO because ofa) Priceb) Qualityc) Durabilityd) Brand name

7. How satisfied is the customer with RALCO?a) Highly satisfiedb) Moderately satisfiedc) Less satisfiedd) Not satisfied

8. Within how many days you get supplies against your order?a) 0-3 daysb) 4-7 daysc) 7-10 daysd) 10 + days

9. Are you satisfied with delivery of tyres?a) Yesb) No

10.How regular is sales staff visit?a) Weeklyb) Fortnightlyc) Monthly


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11.Are you satisfied with policies and schemes of company?a) Yesb) No

12.Are you satisfied with replacement policy of the company?a) Yesb) No

13.Does any improvement needs to be done on?a) Product qualityb) Pricing policyc) Promotiond) Replacement policye) None

Any other suggestions-

Comments-

DETAILED REPORT OF LUDHIANA SURVEY

The survey was conducted from 15-06-2013 to 25-06-2013 in Ludhiana

area under the guidance of Mr. Bhugra (Ludhiana Branch).The dealers and

retailers of Ralson India Ltd. were used as sample size. The sample size is 28

of which 12 are dealers and 16 are retailers.

The survey was conducted in various areas of Ludhiana as listed below-

Aarti Chowk Vishvakarma Chowk Ghumar Mandi Railway Station-Clock Tower Domoria Bridge Civil Lines Chander Nagar Link road


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Sampling universe- All the dealers and retailers of RALCO in Ludhiana

area can be considered as sampling universe for this survey

Sampling unit- The smallest possible individual respondent refers to thesampling unit .Here a single dealer is sampling unit

Sampling Design-Sampling is a process of selecting a sufficient number

of elements from the population. Convenience sampling is used in this

survey

Sampling technique- Convenience sampling technique has been used.

Sample size-28 (12 Dealers, 16 Retailers)

Analysis of survey

1.What type of business are you in?

d)Wholesalee)Semiwholesale

f) RetailObservation and analysis - The survey was conducted after getting the list of

dealers from the Ludhiana Branch. The dealers also act as semi whole sellerssometimes. They also do retail .Also many retailers of RALCO tyres have been

covered in various parts of Ludhiana.

2.Which companies do you deal with?

g)RALCOh)I nternationali)Metroj)Bedrockk)Hindustan


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l )OthersObservation and analysis - RALCO, BEDROCK ,METRO and

INTERNATIONAL were found to be available with almost every dealer and

retailer. Only 2 dealers were exclusive RALCO dealers

It was also noted that although low in quality other tyres of lower

price range continue to thrive well in the market and have a big market share.

They were available with almost very dealer and retailer .Some of them are

Ganga,Bajaj,Young star,Ramson,Rambo,PunjabiTadka,Montex,villo,Ramco,

Etc.

3.For how many years have you been associated with RALCO?

c)Less than f ive yearsd)More than fi ve years

Observation and analysis - to this question there was a universal answer those

more than 5 years. Since RALCO is a very old brad most of dealers and retailers

have been using it since decades. Some dealers said that RALCO is the MRF

of cycle tyre industry. This shows that company has a good brand name which

continues to be its strong point, over the years.

4.Are the customers aware of RALCO products?

c)Awared)Not aware

Observation and analysis-Most of the dealers and retailers responded that

customer is aware of RALCO. They said a consumer demands for RALCO tyre

most of the time. Sometimes consumer goes for other tyre because the price of

RALCO tyres is high.

5.The consumer demand is dr iven by

e)Brand loyaltyf)Best quali tyg)Best durabil ity


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h)Most reasonably pri cedObservation and analysisTo this question there was difference of opinion.

Most of the dealers and retailers said that the consumer goes for best quality no

matter what price is. Also the price sensitive consumer goes for most reasonably

priced.

6.Customers buy RALCO because of

e)Pricef)Qualityg)Durabilityh)Brand name

Observation and analysis- To this question there was a common answer that

quality of RALCO tyres is the main reason. The brand name of RALCO is very

good.

7.How satisfied is the customer with RALCO?

e)H ighly satisfi edf)Moderately satisf iedg)Less satisf iedh)Not satisfied

Observation and analysis-To this question most of dealers and retailers said

that consumer is highly satisfied. Some of them said that consumer is

moderately satisfied. The life cycle of tyre is 12 months or 18 months to the

maximum.

8.With in how many days you get suppl ies against your order?

e)0-3 daysf)4-7 daysg)7-10 daysh)10 + days

Observation and analysis- The supplies are very fast of RALCO tyres. Most of

the dealers order supplies in the morning and get it by the evening the same day.

If the specific tyre is not in stock it takes 10+ days to get supplies. This is an


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area where dealers say that company can improve upon by maintaining a fixed

inventory of popular tyres so that there is no supply lag

The retailers purchase tyres from dealers of the

company which is nearest to them. They purchase tyres by hand.

9Are you satisfied with delivery of tyres?

c)Yesd)No

Observation and analysisAlmost everyone is satisfied with delivery of tyres

leaving one or two dealers who think company can improve in this segment.

10.How regular is sales staff visi t?

d)Weeklye)Fortnightlyf) Monthly

Observation and analysis- The sales staff visits the dealers regularly. The

dealer orders are mostly done on phone these days .The Sales staff visits the

dealers regularly located in its vicinity i.e. vishvakarma chowk area. Thedealers are satisfied with the sales staff visit. The people of sales dept maintain

healthy relation with dealers.

11Are you satisf ied with pol icies and schemes of company?

c)Yesd)No

Observation and analysisthe dealers have different opinion to this question.

While some dealers said they are satisfied others have replied that they are not

satisfied. They have given reasons for this like the company now issues very

less schemes, RALCO gives less schemes compared to other companies. They

feel that nowa-days company favours the dealer less. They said the company

should give more schemes to the dealers.

The policies of company are satisfactory.


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12Are you satisf ied with replacement policy of the company?

c)Yesd)No

Observation and analysis the dealers and retailers are satisfied on this point.

The product of company is very good in quality and there is seldom any need to

get replacement as the product delivers what it promises to deliver.

They said that the stringent quality control helps in maintaining quality of the

product

The dealers feel that replacement process can be made fast.

13.Does any improvement need to be done on?

f)Product quali tyg)Pricing policyh)Promotioni)Replacement policy

j) NoneObservation and analysis- the retailers think that no improvement needs to be

made and they are highly satisfied in all aspects. According to them RALCO is

the best quality tyre and its liked by customers.

However the dealers are having a different

viewpoint. They think that pricing policy and replacement policy can be

improved. The price of RALCO is high and the customer goes for other brands

because of this. The dealer margin is very less as compared to other companies

thus dealer try selling other brands to earn greater profits. Some dealers feel thatcompany keeps a greater chunk of profit to itself and decreases profit margin for

dealer. According to them if the company decreases price the sales will

increase. Also more schemes should be made for dealers. The replacement

though given by the company needs to be made speedy.

Any other suggestions-Following are suggestions given by dealer of

Ludhiana area:-


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a) More schemes should be made by the company.b) Margin is less for dealers which company should pay attention to.c) Price should be lowered to compete with other companies.d) Replacement process should be made faster.e) Company should make consumer oriented schemes.f) Rough pad, writing material and gifts should be provided by company.

REPORT OF AMBALA BRANCH SURVEY

This survey was conducted by Adesh Kalia in partial fulfilment of therequirements for the award of degree of M.B.A. The survey was conducted

from 1-07-2013 to 4-07-2013 in Haryana under the guidance of Mr. Jaswinder

(Ambala Branch).The dealers and retailers of Ralson India Ltd. were used as

sample size. The sample size is 25 of which 18 are dealers and 3ar e retailers.

The survey was conducted in various areas of Ambala branch as listed

below-

Ambala city Ambala cantonment Yamunagar Kurukshetra Pipli Karnal

Sampling universe- All the dealers and retailers of RALCO in Haryanaarea can be considered as sampling universe for this survey

Sampling unit- The smallest possible individual respondent refers to

the sampling unit .Here a single dealer is sampling unit.

Sampling Design: Sampling is a process of selecting a sufficient

number of elements from the population. Convenience sampling is used

in this survey


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Sampling technique- Convenience sampling technique has been used.

Sample size-21 (18 Dealers, 3 Retailers)

Analysis of survey

1.What type of business are you in?a)Wholesaleb)Semiwholesalec)Retail

Observation and analysis - The survey was conducted after getting the list of

dealers from the Ambala Branch. The dealers also act as semi dealers

sometimes. They also do retail. Also some retailers have been covered in

various parts of Haryana.

2.Which companies do you deal with?a)RALCOb)I nternationalc)Metrod)Bedrocke)Hindustanf)Others

Observation and analysis - RALCO, INTERNATIONAL and HINDUSTANwere found to be available with almost every dealer and retailer. METRO was

available with some dealers. It is also observation that Hindustan tyre is more

popular in Haryana region than in Ludhiana because most of the dealers had

Hindustan tyres in Haryana.

It was also noted that although low in quality other tyres of lower

price range continue to thrive well in the market and have a big market share.


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They were available with almost very dealer and retailer .Some of them are

Ganga, Bajaj, Young star, Ramson, Rambo, PunjabiTadka, Montex, vilo,

Ramco,

Etc.

3.For how many years have you been associated with RALCO?a)Less than f ive yearsb)More than fi ve years

Observation and analysis - To this question there was a universal answer those

more than 5 years. Since RALCO is a very old brad most of dealers and retailers

have been using it since decades. Some dealers said that RALCO is the MRF

of cycle tyre industry. This shows that company has a good brand name which

continues to be its strong point, over the years.

4.Are the customers aware of RALCO products?a)Awareb)Not aware

Observation and analysis-Most of the dealers and retailers responded that

customer is aware of RALCO. They said a consumer demands for RALCO tyre

most of the time. Sometimes consumer goes for other tyre because the price of

RALCO tyres is high.

The dealers also recommend the use of RALCO tyres

to their customer because of the quality of RALCO tyres.

5.The consumer demand is driven bya)Brand loyaltyb)Best quali tyc)Best durabil ityd)Most reasonably pri ced

Observation and analysisTo this question there was difference of opinion.

Most of the dealers and retailers said that the consumer goes for best quality no

matter what price is. Also the price sensitive consumer goes for most reasonably

priced. Some dealers said that they have every type of customer the customer


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who demands quality and the customer who demands most reasonably priced

tyres.

6.Customers buy RALCO because ofa)Priceb)Qualityc)Durabilityd)Brand name

Observation and analysis- To this question the most common answer is that

quality of RALCO tyres is the main reason. But some other dealers said that the

brand name of RALCO is very good and people buy RALCO because of that.

RALCO tyres have built a good reputation in the market over the years.

7.How satisfied is the customer with RALCO?a)H ighly satisfi edb)Moderately satisfiedc)Less satisf iedd)Not satisfied

Observation and analysis-To this question most of dealers and retailers said

that consumer is highly satisfied. The life cycle of tyre is 12 months or 18

months to the maximum.

8.Within how many days you get supplies against your order?a)0-3 daysb)4-7 daysc)7-10 daysd)10 + days

Observation and analysis- The supplies are very fast of RALCO tyres. Most of

the dealers get supplies within 2 days. If the specific tyre is not in stock it takes

10+ days to get supplies. This is an area where dealers say that company can

improve upon by maintaining a fixed inventory of popular tyres so that there is

no supply lag.

One dealer of Kurukshetra, M/s Prabhat Cycle

Works faced supply delays for almost 6 months. The dealer ordered tyres and

tubes of a specific size .He got the tyres but the tubes were not delivered to him


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of that size. He called the Ambala branch office several times but never got

supplies .He called the Mr. Karanjit sir at Ludhiana and after that he got

supplies.This process took 6 months. The dealer has advised that the company

must send the tyres and tubes of same size at the same times so that they can be

fitted in cycle together without any delays.

9.Are you satisfied with del ivery of tyres?a)Yesb)No

Observation and analysisAlmost everyone is satisfied with delivery of tyres

leaving one or two dealers who think company can improve in this segment.

10.How regular is sales staff visit?a)Weeklyb)Fortnightlyc)Monthly

Observation and analysis- The sales staff visits the dealers regularly. The

dealer orders are mostly done on phone these days .Most of the dealers said that

the Sales staff person visits the dealers within a week.

11.Are you satisf ied with policies and schemes of company?a)Yesb)No

Observation and analysisThe dealers have different opinion to this question.

While some dealers said they are satisfied others have replied that they are not

satisfied. They have given reasons for

Ralco PROJECT REPORT.docx

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