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 undersigned has been accomplished under my guidance & supervision by A d e s h K a l i a , w h o i s a n MBA student of School of Management Studies, Punjabi University ,Patiala. This project is 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 work presented herein is genuine work done originally by me a n d h a s n o t been published or submitted elsewhere for the requirement of a d e g r e e programme. Any literature, data or works done by others and cited within this project report has been given due acknowledgement and listed in the reference section.

Adesh Kalia 120426177 M.B.A -1(E) School of Management Studies Punjabi University Patiala.

Date-

Contents
ACKNOWLEDGEMENT...........................................................................................................................5 HISTORY OF TYRES.................................................................................................................................6 HISTORY 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.............................................................................12 o CHEMICAL SECTION...........................................................................13 o 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............................................................................................52 REPORT OF AMBALA BRANCH SURVEY.................................................................................................57 ANALYSIS OF SURVEY............................................................................................58 REFRENCES ...........................................................................................................................................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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Tyr es ar e ring - sh ap ed p art s, eith er pn eu mati c or so lid (in cluding rubber , met als and 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, and aircraft. 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 and wagons. The tyre would be heated in a f o r g e f i r e , p l a c e d o v e r t h e w h e e l a n d quenched, causing 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 s urface to th e p eri met er of th e w h eel. As wh eels ch ang ed ov er ti me, th e t er m " t yr e" continued to be used for the outer band even when it no 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 t h e 19th centur y for pn eumat i c t yr es , poss ibl y b ecause i t w as us ed in so me p at ent 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 his son's bicycle, in an effort to prevent the headaches his son had whilst riding on rough roads Pneumatic tyres are made of a flexible elastomer mate r i a l , s u c h a s r u b b e r , w i t h reinforcing 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 produced annually, in over 400 tire factories, with th 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 o f th e prop ert i es of rubb er . This h as been r ef err ed to as th e fir st s ci en tifi c p ap er 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 shocked people that he was brought to court on the 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 limited amount 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 rubber latex, mostly gathered by forced labor. After re 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 the international 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 for bicycle, 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

Mission

We 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 that we 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 customers across 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 art infrastructure 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 Lab The 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 . R h eo met er : This machin e is us ed to s tudy r eologi cal prop ert i es of th e f in al b at ch 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, elongat ion 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 certaint emp er atur e hours . Moisture Analyzer: Used to determine the moisture content present in material. 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 the company 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 . T h e c o m p a n y h a s t w o t y p e o f 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 th e 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:
Ralson RALCO is the most favoured brand of major OEMs like HERO AVON T.I ATLAS & other prominent bicycle manufacturers of India. With our quality products, the company has been able to win the confidence of our

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 countries where 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 INAfganistan Argentina Bangladesh

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Bahrain Bolivia Brazil Burkina Faso Cameroon Chad Chile Colombia Congo Costa rica Denmark Egypt France Ghana Guatemala Holland Honduras Hungary Indonesia Iran Italy Iraq Ivory coast
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Kenya kuwait Lebanon Malawi Mexico Maldives Mali Morocco Mozambique Namibia Nigeria Oman Panama Paraguay Portugal Pakistan Senegal South Africa Saudi Arabia Spain Sri Lanka Syria

Jordan

Sweden

Tanzania Trinidad,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

 BEDROCK TYRES HINDUSTAN TYRES

SWOT ANALYSIS OF THE COMPANY

Definition of SWOT

By specifying clear objectives and identifying internal and external factors 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 to achieving its objective Weaknesses Internal attributes that are harmful to the organization to achieving its objective Opportunities External factors that help the organization achieve its objective Threats - External factors that are harmful to the organization to achieving 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 is a 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 the production of best quality products.

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 Company has a very big production base for manufacturing bicycle tyres. The company has got Hero cycles, Atlas ,Avon cycles as its OEMs The company possesses a very sound dealer network all over the country. Its a 100% internally financed company. The amount of borrowed cash is very less. The company has the biggest R&D facility in the industry. Its R&D department is recognised by Department of Science, Govt of India. The company has employed the best and latest technologies since its inception. 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 research The 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 still produces 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 are unsatisfied 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 RALCO tyres.

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 states like 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 these processes 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 functions can 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.

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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 messages they will expose themselves to. Selective attention: consumers select which promotional messages they will pay attention to. Selective comprehension: consumer interprets messages in line with their beliefs, attitudes, motives and experiences. Selective retention: consumers remember messages that are more meaningful 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 in their evoked set. The evoked set refers to the number of alternatives that
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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 the functional 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 make a 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 of something a consumer needs. b) The search for information, which means you search your knowledge bases or external knowledge sources for information on the product. c) The possibility of alternative options, meaning whether there is another 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 future purchase 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 a single product. The results demonstrated that advertisements were
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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 in buying 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 ultimate consumer. A firm needs to analyze buying behaviour for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a marketing mix that 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 marketing strategies.
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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 always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are: 1. Problem Recognition (awareness of need)--difference between the desired state 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 not know 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. Information search- This includes two types o Internal search, memory. o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. A successful information search leaves a buyer with possible alternatives, the evoked set. 3. Evaluation of Alternatives-- Need to establish criteria for evaluation features the buyer wants or does not want. Rank/weight alternatives or resume search. You may 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, product availability.The purchase is done always in such a way that it satisfies need of the consumer.

6. Post-Purchase Evaluation--Outcome: Satisfaction or Dissatisfaction this can 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 involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying product occasionally. When you need to obtain 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 Making--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 extensive decision 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 o o o o

Physiological Safety Love and Belonging Esteem Self Actualization

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 input changes (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 sixpack, 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 or activity-maybe tangible or intangible, living or non- living, etc. Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward 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 o o o o o o o o o o o

Workaholics Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion Aggressiveness 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 that are 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 individual decision 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 the values, attitudes or behaviours of the group members. Families, friends, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behaviour .Membership group (belong to) Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate 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 to reference 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 upon following criteria Occupation Education Income Wealth Race ethnic groups possessions

Social class determines to some extent, the types, quality, and quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping; do not engage in much pre purchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behaviour. All operate within a larger culture.

Culture and Sub-culture-Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines 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. Big impact on international marketing. Different society, different levels of needs, different cultural values.

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Culture can be divided into subcultures: 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 for themselves. 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 simple and subtle designs as compared to designer wears available at the store. In the above example Sandra and Maria had similar requirements but there was a huge 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 consumer goes 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 of individuals. The main catalyst which triggers the buying decision of an individual is need for a particular product/service. Consumers purchase products and services as and when need arises. According to Belch and Belch, whenever need arises; a consumer searches for several 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 of consumers. Buying decisions of consumers also depend on the following factors:

Messages, advertisements, promotional materials, a consumer goes through also called selective exposure. Not all promotional materials and advertisements excite a consumer. A consumer does 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 particular message. A consumer would certainly buy something which appeals him the most. He would remember the most relevant and meaningful message also called as selective retention. He would obviously not remember something which has nothing to do with his need.

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OBJECTIVES OF THE STUDY

To critically evaluate and study the various aspects of on which consumer behaviour depends. To study the perception of consumers regarding RALCO tyres To study the various ways in which company can deliver more value to its customer and dealers. To critically examine the awareness level and satisfaction level in minds of the consumer. To study other factor namely brand name ,brand loyalty ,etc on which consumers 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 the research 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 that certain 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:

Sources of data collection

Primary Source

Secondary Source

PRIMARY DATA are those which are collected a fresh and for the first time. 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 by someone 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

 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 and it does not represent whole population. People may not have been true in answering various questions and may be biased to certain other questions. In a rapidly changing industry, analysis on one day or in one segment can change 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 dealerPhone numberAddress-

1. What type of business are you in? a) Wholesale b) Semi wholesale c) Retail 2. Which companies do you deal with? a) RALCO b) International c) Metro d) Bedrock
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e) Hindustan f) Others 3. For how many years have you been associated with RALCO? a) Less than five years b) More than five years 4. Are the customers aware of RALCO products? a) Aware b) Not aware 5. The consumer demand is driven by a) Brand loyalty b) Best quality c) Best durability d) Most reasonably priced 6. Customers buy RALCO because of a) Price b) Quality c) Durability d) Brand name 7. How satisfied is the customer with RALCO? a) Highly satisfied b) Moderately satisfied c) Less satisfied d) Not satisfied 8. Within how many days you get supplies against your order? a) 0-3 days b) 4-7 days c) 7-10 days d) 10 + days 9. Are you satisfied with delivery of tyres? a) Yes b) No 10.How regular is sales staff visit? a) Weekly b) Fortnightly c) Monthly
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11.Are you satisfied with policies and schemes of company? a) Yes b) No 12.Are you satisfied with replacement policy of the company? a) Yes b) No 13.Does any improvement needs to be done on? a) Product quality b) Pricing policy c) Promotion d) Replacement policy e) None Any other suggestionsComments-

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 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 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) Wholesale e) Semi wholesale f) Retail Observation and analysis - The survey was conducted after getting the list of dealers from the Ludhiana Branch. The dealers also act as semi whole sellers sometimes. 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) h) i) j) k)
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RALCO International Metro Bedrock Hindustan

l) Others Observation 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 five years d) More than five 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) Aware d) 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 driven by e) Brand loyalty f) Best quality g) Best durability
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h) Most reasonably priced Observation and analysis To 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) f) g) h) Price Quality Durability 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) f) g) h) Highly satisfied Moderately satisfied Less satisfied 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.Within how many days you get supplies against your order? e) f) g) h) 0-3 days 4-7 days 7-10 days 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) Yes d) No Observation and analysis Almost 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? d) Weekly e) Fortnightly f) 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. The dealers are satisfied with the sales staff visit. The people of sales dept maintain healthy relation with dealers. 11Are you satisfied with policies and schemes of company? c) Yes d) No Observation and analysis the 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 now a-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 satisfied with replacement policy of the company? c) Yes d) 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) g) h) i) j) Product quality Pricing policy Promotion Replacement policy None

Observation 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 that company 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.

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a) b) c) d) e) f)

More schemes should be made by the company. Margin is less for dealers which company should pay attention to. Price should be lowered to compete with other companies. Replacement process should be made faster. Company should make consumer oriented schemes. 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 the requirements 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 Haryana area 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) Wholesale b) Semi wholesale c) 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) RALCO b) International c) Metro d) Bedrock e) Hindustan f) Others Observation and analysis - RALCO, INTERNATIONAL and HINDUSTAN were 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 five years b) More than five 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) Aware b) 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 by a) Brand loyalty b) Best quality c) Best durability d) Most reasonably priced Observation and analysis To 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 of a) Price b) Quality c) Durability d) 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) Highly satisfied b) Moderately satisfied c) Less satisfied d) 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 days b) 4-7 days c) 7-10 days d) 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 delivery of tyres? a) Yes b) No Observation and analysis Almost 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) Weekly b) Fortnightly c) 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 satisfied with policies and schemes of company? a) Yes b) No Observation and analysis The 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 now-a-days company favours the dealer less. They said the company should give more schemes to the dealers. The company should make policies and schemes after doing a market study. Also company should make consumer oriented schemes for example, there should be gifts given to the customer which will motivate the consumer to buy RALCO tyres.

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12. Are you satisfied with replacement policy of the company? a) Yes b) No Observation and analysis Some of the dealers 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. But the company recently has changed its replacement policy and now replaces tyres and tubes only within 1 year. Most of the dealers are unsatisfied on this point. They think that the company needs to review this policy because it brings loss to the dealers as they have got tyres and tubes which were to be replaced but could not be done because of the new policy. They justify their point by saying that its not necessary that tyres manufactured in one year will be sold the same year. Hence they think that this policy must be changed. The dealers feel that replacement process can be made fast. 13. Does any improvement need to be done on? a) Product quality b) Pricing policy c) Promotion d) Replacement policy e) None Observation 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 that company 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. Some dealers are unsatisfied with the quality of RALCO tyres which they think is deteriorating day by day. The N.G. tyres are
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thin as compared to Metro tyres. Also the bundle of tyres which earlier used to weight 63 Kgs now weighs just 57 Kgs. This is a 6 kgs decrease in weight which shows that company is suffering with quality issues too. The nylon cycle tyres earlier were of very good quality but now its quality is also decreasing. A dealer of Yamunagar, M/s Munjal Cycle Works is selling tyres at 1 rupee loss because of the competition. Also the dealers feel that stock should not be given to those dealers who sell on no profit basis. Some dealers even pointed out that since the inception of company no dealer meet has been organised at Ludhiana. The dealers should get a chance to meet the companys heads at least once in a year.

Any other suggestions-Following are suggestions given by dealer:a) b) c) d) More consumer oriented schemes should be made. Margin is less for dealers which company should pay attention to. Price should be lowered to compete with other companies. Replacement time should be made longer from 12 months to 15or 18 months. e) Instead of making advertisement stickers, Happy New Year and Diwali posters the company should give gifts to dealer which will encourage dealer to sell RALCO tyres more .The stickers and posters lie unused at many dealer shops and dealers think the company does over spending on advertisement. f) Dealer meet must be organised. g) T-shirts with companys logo should be given to the labour which works on cycle shops.

REFRENCES Search on the Web An extensive search for material on the Internet was conducted by using several search engines including Google.com, bing.com, Alltheweb.com, Altavista.com, and msn.com. Also the companys website was consulted for project making. Personal Contacts
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The main objective of a literature review is to find relevant published material; however, often valuable material is unpublished and available only by directly contacting people who work in the field. Hence, the research included personal contact with many dealers to uncover additional research . Dealers of Ludhiana Dealers of Ambala city Dealers of Ambala cantonment Dealers of Kurukshetra Dealers of Karnal Mr Karanjit sir Mr Vivek sir Mr Bhugra sir (Ludhiana branch) Mr Jatinder sir (Ambala branch) Mr Vikas sir (R&D) A RECENT TYRE SURVEY More recently, a customer satisfaction survey of tire consumers (sample size of 39,000) by J.D.Power and Associates indicated that five characteristics capture whether or not a consumer is satisfied with his/her tires. In order of importance, these include: product quality (for example, number of tires with problems, number of originals replaced), long-term performance (for example, length of warranty, freedom from pull), situational performance (for example, traction on wet roads, overall ride on highways), design (for example, quietness, style and appearance, and tread design), and Durability This research found that when making a tire purchase, price was the most important decision criterion (59 percent of respondents) followed by brand name (47percent of respondents). In addition, only 11 percent of consumers said they chose a store due to advertising. A particularly noteworthy finding was that 36 percent of respondents said the tire dealers recommendation swayed their decision, indicating the important role in-store representatives may have on consumers tire purchase decisions. Fifty-seven percent of tire purchases were unplanned, with 44percent of the respondents saying they were replacing worn tires. Twenty-seven percent said they were replacing a damaged tire or tires. Reinforcing the importance of the in-store sales representative, a survey of tire dealers by Tire Review found that 40 percent of customers who walk into a store ask for a specific brand, yet
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56percent of these will switch to a different tire based on the salespersons suggestion. CONCLUSION TO THE PROJECT We know very little about consumers tire-buying habits and their attitudes, perceptions After doing the survey it was found that that RALCO has good

brand name in the market which it has established by making quality products over the years. The consumer of cycle tyres comes from different walks of life. Some are ready to pay for high quality tyre but some who are economically weak go for the cheapest ones. This is a very common thing in developing nation like India .The consumer demands RALCO tyre while making a tyre purchase .This shows that company has got brand loyalty because consumer goes for RALCO tyres again and again .Also it was found that the customer goes for quality product even if it is a little expensive. The consumer of RALCO is satisfied with RALCO products .There was no complaint against quality which was recorded. Also since the company makes a variety of products ,the consumer gets what he wants in his budget most of the times. But there is another side of coin too. The dealers feel that the company gives them less perks and benefits these days as compared to the competition . So the dealers prefer selling other brands to earn more profit. The dealers also said that the profit margin on their end has declined steeply over the years. This affects company negatively and company loses its valuable customers. So in order to keep loyal customers the company should take steps to build a healthier relation with dealer. It was also seen that all customers whether aware of RALCO or not do ask the dealer about the best tyre. The customers have many a times acted upon the sales persons suggestion and most of the times get a tyre after consulting with him. Here lies the crux of the matter .If a dealer is satisfied with RALCO and has a large stock of it he tells the customer to buy RALCO suggesting that it is the best tyre. But if he is not having stock or if he is un satisfied with RALCO he recommends Metro or International tyre since those are also equal in quality but give more profit margin to the dealer compared to RALCO. The report of the project goes hand in hand with the international survey done by J.D . Power. Whatever may be the consumer
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behaviour of a person towards a cycle tyre company the binding decision of his cycle tyre purchase depends on the tyre sales person. His recommendation is taken by the customer seriously.

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