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A Project report On Study on Customer Satisfaction After Sales Service
(A training report submitted in partial fulfillment of the requirement for the degree of MBA)
MASTERS OF BUSINESS
ADMINISTRATION
MBA
(2011-2013)
Submitted by:-
MAYANK SHARMA
MBA 2ND YEAR ID:CD1113SSISBE-PGP10177(DEL-3/DA-3191)Specialization – Marketing
CHANDIGARH
MAHINDRA & MAHINDRA LTD. SWARAJ DIVISON
HAMARA SWABHIMAAN
PREFACE
For management career, it is important to develop managerial skills. In order to
achieve positive and concrete results, along with theoretical concepts, the exposure of
real life situation existing in corporate world is very much needed. To fulfill this need,
this practical training is required.
I took training in fast growing company M & M SWARAJ DIVISION located in
MOHALI. It was my fortune to get training in a very healthy atmosphere. I got ample
opportunity to view the overall working of the company.
This report is the result of my eight weeks of summer training in M & M LTD -
SWARAJ DIVISION, as a part of M.B.A. The subject of my report is- customer
satisfaction after sales service of M & M LTD - Swaraj Division.
In the forthcoming pages, an attempt has been made to present a comprehensive
report covering different aspects of my training.
ACKNOWLEDGEMENT
To test the student’s academic knowledge in practical conditions of life, six-
eight weeks summer training has been included in the M.B.A course. I express my
gratitude to Mr. BHAWDEEP SINGH TANGI (DEPARTMENT HEAD (M.B.A.)),
UNIVERSITY SCHOOL OF BUSINESS STUDIES, GURU KASHI CAMPUS,
TALWANDI SABO for allowing me to undergo 3TH SEM training in Mahindra &
Mahindra Ltd - Swaraj Division.
I have the honour to express my sincere thanks to the management of Swaraj
Division for providing me the opportunity to pursue my training in their esteemed
organization. I place on record my thanks to Mr. RAMAN BAJAJ (Manager -
MARKETING) for giving me every sort of help and guidance.
My summer training has added to my practical knowledge and build up
my confidence. I thank once again all the staff members of Swaraj Division with the
active support of whom I was able to complete my project report successfully.
(MAYANK SHARMA)
SWARAJ... CONTENTS
CHAPTER-I INDIAN TRACTOR INDUSTRY -An Overview
CHAPTER –II M&M LTD -SWARAJ DIVISION -A Company Profile
CHAPTER –III OBJECTIVES OF THE STUDY & Executive summary
CHAPTER –IV ANALAYSIS AND INTERPERTATION
CHAPTER –V CONCLUSIONS AND
RECOMMENDATIONS
CHAPTER -VI REFERENCES
DECLARATION
I, the undersigned do hereby declare that the project report submitted to my college
INDIAN INSTITUTE OF PLANNING AND MANAGEMENT CHANDIGARH
CAMPUS, in partial fulfillment for the degree of Master Of Business Administration
on “The study of consumer satisfaction after sale service” being is my own piece
of work under continuous guidance and kind co-opration of our college faculty and it
has not been submitted to any other institute or published at any time before.
MAYANK SHARMA
.
Chapter-I
INDIAN TRACTOR INDUSTRY
AN OVERVIEW
BACKGROUND
Earlier in 1950’s, the India people was engaged in agriculture and for
irrigation mainly depend upon rains except a few isolated pockets being irrigated
through canals and tube wells. Very few people used chemicals and pesticides and
even the major agricultural operations life ploughing, planking, etc. were carried
down by bullocks. As a result, India could not produce enough to feed its people so
heavy expenditure was incurred on import of food grains. It results in scarce foreign
exchange reserves of our country. All this initiated Indian government to give highest
priority to development of agriculture in its five year plan programmed.
Cultivation, being the key operation in agriculture. A stress was laid on the
improvement in agricultural output through use of advanced technology. Extensive
use of effective and improved equipments was made by importing tractors. Our
Government encouraged manufacturing of tractors in India to save its foreign
currency reserves. As a result, a few plants were set up but Indian technology at that
time was not in a position to design and manufacture indigenous tractors. So the
plants were mainly set up for manufacturing tractors with the help of some foreign
collaboration.
HISTORY: INDIAN TRACTOR INDUSTRY
THE BEGINNING: Indian Tractor Industry took birth in 1959-60 when the first
tractor manufacturing unit was established. However, this industry found a firm
footing only after the turbulent period of 1968-74, during which the acceleration
which should have emerged from the upsurge in demand generated by the Green
Revolution was navigated by large-scale imports of fully built tractors. By 1973-74
when imports were banned, 22 manufacturers remained. It is in an environment of
intense competition between 22 manufacturers that our tractor industry has grown
during the last 30 years. During this period, it has become not only a major segment
of our engineering industry but with a population of 1, 30,000 tractors in 1990, our
country became the second largest tractor producer in the world.
The development of tractors industry from the very beginning i.e. 1959-60 Till date can be divided into the following four phases:-
1. First phase of development (1959-68):
In late sixties demand for tractors was low. After 1967, demand of tractors started
multiplying at an annual rate of nearly 50% because government policies in respect of
the development of tractor industry to promote mechanization of agriculture
encouraging local manufacturer of tractors along with the import of tractors from
Eastern Europe. At the same time, government protected the interests of the farmers
by making tractors available to them at reasonable prices. Tractors manufacturing
units came up in this decade:
Escher Tractors Ltd. (1959)
Tractors and Farm Equipment Ltd. (1963)
Tractors and Builders Ltd. (1964)
International Tractors Ltd. (1965)
2. Second phase of development:
The government’s decision to freely invite new entrepreneurs to tractor manufacture
in 1968 backed by Green Revolution, led to the establishment of six more units in this
industry. They were:
Escorts Tractors Ltd. (1971)
Hindustan Machine Tools Ltd. (1971)
Kirloskar Tractors Ltd. (1974)
Punjab Tractors Ltd. (1974)
Pittie tractors Ltd. (1974)
Harsha Tractors. Ltd. (1975)
The combined output of 11 units has risen to 32,000 by
1975. Government de-licensed the tractor industry in 1968 and then banned import of
fully built tractors in 1974. There was expansion in rural branches of banks and rural
lending increased. The pace of irrigation facilities also increased and government
extended full support to old and new manufacturers to speedily establish them.
3. Third phase of development:
Banning of imports and increased competition due to increase in number of tractor
manufacturers led to the growth in local production. The boom in the tractor industry
in the late seventies led to the setting up of two more units for the manufacture of
tractors. These were:
Auto Tractors Ltd. (a U.P. Government enterprise) (1981)
Partap Steel Rolling Mills Ltd. (Tractor Division) (1983)
The tractor industry saw a rapid growth of 6% from 1982-87.
4. Fourth Phase of development:
After 1987 the tractor industry further picked up Government gave priority to
agriculture and exempt the excise duty on tractors below 1800cc in 1986 and
repayment period was increased from 7 to 9 years. After this, average growth of 15%
was experienced for 1988-92 which was due to green revolution. After six years
(1987-92) of rapid growth, demand for tractors showed a decline of 4% in 1992-93
and 3.8% in 1994-95. Sales dropped from 1.51 lacs in 1991-92 to 1.38 lacs in 1993-
94. The decline was due to the following factors:-
Land development bank, an important source of finance, collapsed. Depression in
market due to credit squeeze. Decrease in production of cash crops. Political
uncertainty.
But after that tractor industry again started growing and tractor sales went to
1.64 lacs in 1995 and further in 1996-97.
THE PRESENT
Sales peaked to 2.73 lacs in 1999-2000. In the year 2000-01 and
2001-02 the sales decline to 2.53 and 2.18 lacs because of fall in the rural income
virtually all over country and due to rising competition. It reached 1.69 lacs in 2002-
03. The industry saw an upward trend volume touching 4 lacs in 2009-10 and to 4.46
lacs in 2010-11. During the current FY 2009-10, around 4,50,000 tractors were sold in
India and 100000 tractors were exported.
The industry has now discovered channel-exports to ensure that the sales of tractors
do not drop. In fact, exports have now become a thrust area.
Five major manufacturers are in the race for tractor market today, account for 78% of
the total market share. They are offering products of different HP’s. They include
below 20HP, 21-30HP, and 41-50HP and above.
CRITICAL PARAMENTERS FOR GROWTH OF TRACTOR
INDUSTRY
* AGRICULTURE INDUSTRYNearly 90-95% tractors are purchased with the help of bank credit. It plays an
important role in determining the demand for tractors.
* PRICING OF TRACTORS . The financial inability of the Indian farmers makes the pricing a critical parameter.
Companies that managed to keep their costs low are the ones that managed to survive
during the reversionary period.
* MONSOONS AND CROP PRICES.The farmers have to pay 15% of the total price of the tractor, in cash, at the booking
stage; consequently, if the farmer is faced with bad monsoons and low crop prices, he
will not be able to make the initial down payments.
* GOVERNMET POLICIESTo enable a farmer to purchase a tractor against these odds, the government
introduced subsidies in this sector. In the budget of 2004 all the tractors were
exempted from excise duty.
* IMPORTS The industry reduce its dependence on imports, they have indigenized their inputs,
which were earlier imported and priority is given to Research and Development. All
tractor manufacturing units, except the Swaraj Division, were initially set up with
foreign collaboration, tractor industry has been on its own for the last decade.
* WIDENING RANGE FOR CUSTOMER CHOICE Competition in tractor industry led to increase in the variety of models for farmers to
choose from. Industry today offers more than 43 models, and special variants to suit
regional needs and special usage are often available in many models.
TRACTOR MARKET – A CYCLICAL TREND
Table below provides the industry picture for 2007-08, geographically & segment
wise:
GEOGRAPHICALLY
Territory %age of Domestic Sales
North (Punjab, Haryana & Uttar Pradesh)
Central (Madhya Pradesh & Rajasthan)
East (Bihar, West Bengal, Orissa & Assam)
West (Gujarat & Maharashtra)
South (Andhra Pradesh, Tamil Nadu, Karnataka & Kerala)
29%
18%
9%
18%
26%
SEGMENT WISE
HP Range %age of Domestic Sales
Up to 30 HP
31 - 40 HP
Above 40 HP
18%
37%
45%
Chapter –II
MAHINDRA & MAHINDRA -SWARAJ (A COMPANY PROFILE)
PRICE QUALITY
SERVICE
MOTTO OFM & M SWARAJ DIVISION
PROMOTION OF SWARAJ
M&M LTD -Swaraj Division (SWARAJ DIVISION)
was joint sector company of the Punjab Government, which went into commercial
promotion in the early seventies. It is promoted by Punjab State Industrial
Development Corporation (PSIDC) in 1974 which was set up by Punjab Government
for setting up new projects.
In 1965 when the entire industrial growth of India relied
upon foreign technology and know-how for setting up industrial ventures in India, the
Central Mechanical Engineering Research Institute (CMERI, Durgapur), a national
Laboratory of the Government of India, took the bold step of taking up the design and
development of totally Indian know how for 26.5 H.P. agricultural tractors.
In August 2008, the PUNJAB
TRACTORS LIMITED was taken by MAHINDRA & MAHINDRA LIMITED &
PTL becomes Pvt. Limited Company. So PTL is now a part of M & M Group
PUNJAB TRACTORS LTD -SWARAJ IS NOWM&M LTD - SWARAJ DIVISION.
Punjab Tractors Ltd. to merge with Mahindra & Mahindra Ltd., PTL’s Swaraj brand will continue to exist
The Board of Directors of M&M and PTL today unanimously approved a scheme of
amalgamation of Punjab Tractors Limited (PTL), an M&M subsidiary, with Mahindra
& Mahindra Ltd. M&M Ltd. along with its subsidiary Mahindra Holdings and
Finance Ltd. agreed to acquire the stake from Actis Group. Mahindra owns a majority
stake in Punjab Tractors Limited and had earlier acquired 63.33% stake in PTL.
Under this amalgamation scheme, pursuant to provisions of Sections 391 to 394 and
other relevant provisions of the Companies Act, 1956, PTL will be merged into M&M
and all its assets and liabilities will be transferred to M&M at book values. The
appointed date under this scheme is 1st August 2008. Upon the scheme becoming
effective, M&M will transfer all the equity shares held by it in PTL to a Trust, of
which M&M is the beneficiary. M&M will issue its shares to PTL shareholders as on
record date, based on the swap ratio determined by independent valuers.
Anand Mahindra, Vice-Chairman and Managing Director, Mahindra Group, said,
‘PTL is a strategic fit for M&M and its amalgamation with M&M will significantly
add to shareholder value. Bringing these two businesses under a single entity will also
result in a common management focus, help achieve greater integration benefits and
reduce overall administrative costs.’
However, M&M has said that PTL’s Swaraj brand will continue to exist even after the
company's merger with automotive major Mahindra & Mahindra. ‘Swaraj brand of
Punjab Tractors will continue to exist after the amalgamation of PTL with Mahindra
& Mahindra as this brand is an important asset to us and we will like it to further
excel,’ said Anjani Kumar Choudhari, President - Farm Equipment Division, M&M.
An independent valuation exercise has been conducted jointly by Ernst & Young and
N. M. Raiji & Company. Based on this exercise, the share exchange ratio for the
amalgamation has been arrived at. Equity shares of M&M will be issued to the
shareholders of PTL in the ratio of one equity share of Rupees 10 each of M&M for
every three equity shares of Rupees 10 each held in PTL.
LOCATION -The plant of M&M LTD -Swaraj Division is located in Mohali Focal
Point Estate near Chandigarh on Chandigarh-Ludhiana Highway (Phase IV,
Sahibzada Ajit Singh Nagar, Mohali (Punjab) on a campus of 17 hectares. The land
was allotted by Punjab Govt. in the developing Mohali to make it a progressive
Industrial Centre. The location of plant is very suitable because it is quite near to the
capital of Punjab. This fact has been advantageous to the company in its initial stage
of growth. However the inadequacy of railway facilities is a serious drawback to the
location of the plant.
QUICK FACTS
Year of Establishment
1970
Business Group Swaraj EnterpriseListings & its codes
NSE: PUNJABTRAC; BSE: 500344; Reuters: PTRA.BO
Registered Office + Works
Phase IV, Industrial Area S.A.S. Nagar (Mohali), Punjab
Corporate Office S.C.O. 204-205, Sector 34-A Chandigarh. 160022 Tel.: +(91)-(172)-2647700 to 10 Fax: +(91)-(172)-2615111
Website www.swarajenterprise.com
EMERGING MARKETS
Swaraj Domestic territorial market share for 2010-11 dealer networks at the year – end emerges as:
DOMESTIC TERRITORIAL MARKET SHARE AND DEALER NETWORK (YEAREND)
Territory Swaraj Market Share
No. of Dealers as on
31-03-08
North (Punjab, Haryana & Uttar Pradesh)
Central (Madhya Pradesh & Rajasthan)
East (Bihar, West Bengal, Orissa & Assam)
West (Gujarat & Maharashtra)
South (Andhra Pradesh, Tamil Nadu, Karnataka & Kerala)
10.1%
4.9%
8.3%
11.7%
9.3%
203
114
68
88
93
Total 9.1% 566
SEGMENTWISE
HP Range No. ofModels
%age of Swaraj Sales
Swaraj Share in Segment
Up to 30 HP
31 - 40 HP
Above 40 HP
5
1
3
17%
50%
33%
9%
12%
7%
“CORE BELIEFS”
1. WE HAVE A LONG – STANDING RELATIONSHIP WITH THE FARM &
FARMING COMMUNITY THE NATIONAL HERTAGE AS WELL AS THE
NATIONAL AGENDA, WHICH PROVIDES US WITH IMMENSE GROWTH
OPPORTUNITES.
2. OUR STRENGTH IS THE INVOLVEMENT OF OUR PEOPLE, TEAM SPIRIT,
AND THEIR INTEGRITY ABIDING LOYALITY & LIFE TIME COMMITMENT
TO THE SWARAJ ENTERPRISE.
3. WE SEEK COPRPORATE EXCELLENCE AND PROFITS THROUGH ETHICS
PASSION AND PERSERVERANCE.
4. WE CONSIDER OUTSELVES CUSTODIANS AND TRUSTERS OF ALL OUR
CONSTITUENCIES – OUR CUSTOMERS, EMPLOYEES, BUSINESS
ASSOCIATES, SHAREHOLERDRS AND SOCITY AND PURSUE THE
RESPONSIBILITY ROR CREATION OF WEALTH FOR THEM WITH
MISSIONARY ZEAL.
MAHINDRA &MAHINDRA LIMITED
SWARAJ DIVISION
BOARD OF DIRECTORS
P.D. NARANG (Chairman)
S.K. TUTEJA
DONALD PECK
STEVEN ENDERBY
N. MOHANRAJ
M. RAGHAVENDRA
HARDEEP SINGH
DALJIT MIRCHANDANI
P. SIVARAM (Chief Operating Officer)
A.M. SAWHNEY (Director – Marketing)
MEMBERS OF THE EXECUTIVE BOARD
P.L. SHARMA
R.K. MANRAO
P.K. NANDA
BACKGROUND
M&M LTD -Swaraj Division plant is situated at S.A.S. Nagar (Mohali) where
production commenced in the year 1974. Initially, PSIDC contributed 42% equity
capital against the total paid up capital of Rs.140.00 lacs. The facility was initially
created to manufacture 5000 nos., tractors and the capital cost at that time was Rs.321
lacs.
The production capacity of tractors has increased to 60000 nos., from the level of
5000 nos. The company, over the years, has also promoted two companies, namely,
Swaraj Mazda Limited (manufacture of Light Commercial Vehicles) & Swaraj
Engines Ltd. (manufacture of Diesel Engines in collaboration with Kirloskar Ltd and
it has also promoted Swaraj Automotives. The present stake of SWARAJ DIVISION
in these is 14% in Swaraj Mazda, 33% in Swaraj Engines and 24% in Swaraj
Automotives.
MISSION, VISION & OBJECTIVES
OBJECTIVES OF SWARAJ
1) QUALITY a. Continually improves satisfaction level of our customers.
b. Continually improve performance & reliability of our
products & services
c. Provide to you delivery of products & services to meet
customers requirements.
d. To reduce the break down of equipment.
2) ENVIRONMENT, HEALTH AND SAFETY .
a. Control and reduce emission & discharge in the company
b. Optimum Utilization of natural resources
c. Control & Reduce accidents and provide Safety to the
employees working in the organization.
3) PEOPLE’S EXCELLENCE .
a. Continually improve Education and Training to employees
and their overall development.
SWARAJ DIVISION: BRAND NAME ‘SWARAJ’
The word SWARAJ in Indian language means ‘freedom from bondage’. Since
SWARAJ DIVISION was the first large scale project in India based totally on Indian
know how and technology, Swaraj was appropriately chosen as its brand name. With
more than 5 Lac tractors and harvest combines operating in Indian farms, now Swaraj
is also an internationally recognized name in the developing world Viz. East Africa,
West Africa, Middle East and South East Asia, etc.
SWARAJ - STAGES OF GROWTH
PERIOD (1970-74)
This project for manufacture of 5000 tractors per year was set up at an outlay
of Rs. 3.70 crores during November 1972- March 1974. The engineers for Swaraj
tractors were procured from M/s Kirloskar Oil Engines Ltd., a pioneer in Indian
Engineering Industry. SWARAJ DIVISION went into commercial production with
the introduction of its first Model Swaraj 724 in April 1974.
PERIOD (1974-78)
In 1974 competitive market conditions prevailing where well known
international brands such as Ford, Massey, Ferguson, etc were available, it was
difficult to establish a new tractor. Thus to establish Swaraj against this severe
competition, the following strategy was adopted.
Intensive and close marketing.
District - wise distribution.
Limited introduction and slow extension of distribution network.
SWARAJ DIVISION’s own serving group.
Strict uniformity of product performance and quality.
SWARAJ DIVISION’s first launch SWARAJ 724 received quite favorable response
and encouraged by this response and also by taking into account the preference of
large segments of farmers for higher HP tractor, development work on a 35 HP tractor
was started in January 1975. SWARAJ DIVISION introduced its second model
SWARAJ 735 in November 1975 which is now the most popular tractor. Then a low
cost tractor SWARAJ 720 was introduced in 1978 for small farmers.
1. THE EXPANSIONS (1978-82)
SWARAJ DIVISION started growing and increased its production capacity to 12,000
tractors at a capital outlay of Rs. 9.2 crores. During this time SWARAJ DIVISION
became multi-divisional by installing Swaraj Foundry Division for manufacturing
castings. This division started supplying casting to SWARAJ DIVISION in 1980. In
1983, SWARAJ DIVISION introduced SWARAJ 855 and became the first
manufacturing organization to have the widest product range.
2. BREAK PERIOD (1982-86)
With encouraging past records PTL decided to increase its production to 24000 per
annum. But the RBI’s credit squeeze policy affected the tractor industry, as more than
95% of the tractor sales are through banks. SWARAJ DIVISION’s sale dipped from
10000 tractors to around 5500 tractors in 1982-83. During 1982-86, SWARAJ
DIVISION’s efforts were directed towards training its work force, reducing wastage,
cutting down scrap, inventory control, up gradation of quality, expanding dealer
network in new areas and widening product variants. Thus SWARAJ DIVISION
worked on ‘man’ rather than ‘machines’
STAGE OF GROWTH SINCE 1987
There is goodwill create in the mind of the people regarding brand SWARAJ, market
since 1987 has been showing growth trend. The demand for Swaraj has increased
tremendously. Now consumers are ready to wait and pay the entire amount in advance
to buy a Swaraj tractor rather than buying any other tractor. Production capacity had
increased presently to 33000 tractors per year and will further increase to 36000
tractors per year by 2000.
THE DECADE OF NINETIES
The decade of 90’s has been a rewarding one for all the constituents of Swaraj
enterprise - through generation of wealth for its customers, its business associates, its
employees, its shareholders and the society.
Nomination by the Economic Times - ‘best company of the year
1998’.
Listed by FII in ‘the jewels of Asia’ category 1999.
Nomination of UTI institute of Capital Markets for excellence in
corporate governance.
Listed by Hong Kong based ‘Asia Money’ among top 5 best
managed companies in India 1999.
Listed by “Business Today’ among top 3 Economics value
generators in India.
Evolving Journey of SWARAJ DIVISION
1965 Govt. of India's research institute (CMERI) at Durgapur initiates design and development of SWARAJ tractor based on indigenous know-how.
1970 Punjab Govt. through PSIDC acquires SWARAJ tractor's design from CMERI and establishes Punjab Tractors Ltd. (SWARAJ DIVISION) for its commercialization.
1971-73
SWARAJ DIVISION sets up SWARAJ Project for 5,000 tractors per annum at a capital outlay of Rs. 37.0 million with an equity base of Rs 11.0 million.
1974 Swaraj 724 (26.5 HP) tractor commercially introduced.1975 2nd tractor model SWARAJ 735(39 HP) developed by own R&D,
commercially introduced. 1978 3rd Tractor model SWARAJ 720 (19.5 HP) developed by own R&D,
commercially introduced.
Maiden equity divided declared. 1980 Guided by social concerns and responsibility, SWARAJ DIVISION takes
over PSIDC's sick scooters unit - Punjab Scooters Ltd. (subsequently renamed as SWARAJ Automotives Ltd.)
India's first Self propelled Harvester Combine - SWARAJ 8100 developed by own R&D, commercially introduced.
SWARAJ Foundry Division set up in Backward area. 1981 Issue of maiden Bonus Shares (2:5), paid-up equity moves to Rs 15.4
million. 1983 4th Tractor Model - SWARAJ 855 (55 HP) developed by own R&D,
commercially introduced.
Expansion of annual capacity to 12,000 tractors per annum at Plant 1.1984 SWARAJ MAZDA Ltd. promoted in technical and financial collaboration
with Mazda Motor Corpn. & Sumitomo Corpn. Japan for manufacture of Light Commercial Vehicles. SWARAJ DIVISION's equity participation is Rs. 30.4 million (29%) and that of Mazda and Sumitomo's Rs. 27.0 million (26%).
1985 SWARAJ Industrial Forklift Trucks developed by own R&D, commercially introduced.
1986 SWARAJ ENGINES Ltd. promoted in technical and financial collaboration with Kirloskar Oil Engines Ltd.(KOEL) for manufacture of diesel engines. SWARAJ DIVISION's equity participation is Rs. 6.9 million (33%) and that of KOEL's Rs 3.6 million (17%).
1989 1st Right Issue (1:1) at a premium of Rs 50/- per share (plus reservation of 200 Shares per employee) paid up equity moves to Rs 31.6 million.
1990 2nd Right Issues (1:2) at a premium of Rs 60/- per share (plus reservation of 200 Shares per employee) paid-up equity moves to Rs 50.6 million.
1992 2nd issue of Bonus Shares (1:1) paid up capital moves to Rs. 101.2 million.
1993 Annual tractor capacity expanded to 24,000 per annum at Plant 1. 1995 Setup of tractor Plant II at Village Chappercheri with annual capacity of
12,000 per annum. 1996 3rd issue of Bonus Shares (1:1), paid up equity moves to Rs. 202.5
million. 1998 Commencement of expansion to 60,000 tractors (30,000 at each plant).
Capital outlay of Rs 1000 million, funded mainly through internal accruals.
1999 5th and 6th tractor models - SWARAJ 733 (34 HP) & SWARAJ 744 (48 HP) developed by own R&D, commercially introduced.
FY 1999's divided @ 250% was corporate India's highest. 2000 Expansion of annual tractor capacity to 60,000 completed.
4th issue of Bonus Shares (2:1) paid up equity moves to Rs 607.6 million.2001 SWARAJ DIVISION won National Championship trophy in competition
organized by All India Management Association (AIMA) for young managers.
Economic times and Boston Consulting Group selects SWARAJ DIVISION as one of the India's finest 10 companies out of Economic times top 500 Companies.
2002 Cumulative tractor sales crosses 5, 00,000. 2003 PSIDC's disinvestment of its entire Equity holding (23.49%) in SWARAJ
DIVISION in favor of CDC Financial Services (Mauritius) Ltd. With this, total holding of CDC & its associates in SWARAJ DIVISION stands at 28.48%.
2004 7th & 8th tractor models - Swaraj 939 (41 HP) & Swarj 834 (34 HP) developed by own R&D, commercially introduced.
2005 SWARAJ DIVISION disinvested 15,73,000 equity shares of Rs. 10/- each of Swaraj Mazda Ltd. (constituting approx. 15% of SML's paid up capital) in favor of Sumitomo Corporation, Japan, a joint venture partner in Swaraj Mazda Ltd. at a total consideration of Rs. 629.2 million
2007 CDC/Actis Group and Burman Family's disinvestment of their Equity holding in SWARAJ DIVISION (43.3%) in favor of Mahindra Group (M&M). M&M made open offer to shareholders for another 20% equity of the Company.Mahindra Group's equity holding in the Company stands at 64.6%Cumulative Tractor Sales cross 600,000.Swaraj Track Type Combine designed and developed by in-house R&D, commercially launched
ASSOCIATE UNITS OF SWARAJ DIVISION
1. SWARAJ FOUNDARY DIVISION:
It was established in 1980 at a capital outlay of Rs. 1.80 crores to provide grey iron
castings to SWARAJ DIVISION. Initial production was 5000 MT/year. It is situated
in village Majari in Ropar district. In FY 2007-08, production of castings was 9,600
Metric Tonnes, representing a value of nearly Rs. 50.5 crores.
2. SWARAJ COMBINE DIVISION:
Punjab government requested SWARAJ DIVISION for the development and
manufacture of self propelled Harvester combines to curtail the harvesting season and
save the crops from natural calamities. As a result Swaraj Combine Division was set
up in 1980 at Chappercheri to produce 250 combines per annum at an initial
investment of Rs. 2.65 crores. In 1981, first SWARAJ 8100 rolled out. In 1985,
production of diesel fork lift also started in collaboration with KOMATSU Fork- Lift
Company of Japan. Over last 28 years, the company has sold nearly 3,150 combines
including 65 in 2007-08.
SWARAJ DIVISION
PLANT- 1 PLANT – 2 PLANT -3
SWOT ANALYSIS
STRENGTHS:
The company has an excellent distribution network.
Due to strong consumer preference and the potential for expansion, the industry in
bound to record growth.
The company mainly has medium horse power tractor in its product portfolio, which
holds a good growth potential thereby leading to an increase in the market share.
Strong Research and development set up.
Being a cash rich company, SWARAJ DIVISION should have no obstacle for further
expansions.
WEAKNESSES:
Being agro-based product, company’s fortune depends on the
vagaries of the monsoon. The company is addressing this problem by going in for
capacity expansion and increasing dealer network. The company has not leveraged its
brand and product varies in the exports market. Major market share in Punjab &
Haryana could stagnate as the market mature.
OPPORTUNITIES:
The Company will have the advantage to synergize with M &
M, Farm Equipment Sector in the areas of sourcing, manufacturing, product
development and distribution. Increased agri-focus of the Indian Government.
Good brand name, product quality and cost advantage to increase exports in low value
markets of Sri Lanka, Bangladesh and African countries.
THREATS:
The entry of international and new domestic players would intensify
competition significantly. This could put pressure on the sale growth and the merging
of the company. Number of technically superior new models likely to be launched in
the market in the next two years. The evitable increase in petroleum prices including
diesel & other inputs, will naturally bring down the spirit of a prospective tractor
purchasers.
Chapter-III
OBJECTIVES OF THE STUDY
1) To study the various components of marketing management of SWARAJ
DIVISION.
2) The project aims at studying the customer retention in after sales service.
3) To provide good service and retain the customer.
4) To analyze the market performance of the SWARAJ DIVISION.
5) To suggest remedial measures for the improvement of the company’s
performance
RESEARCH METHODOLOGY
The basic task of research is to generate accurate information for use in decision
making. Research can be defined as the systematic and objective process of gathering,
recording and analyzing data for aid in making business decisions.
As the project involves analyzing of customer satisfaction, the research is exploratory
in nature, covering all parameters and come of the important ratios to carry out
research.
There are basically two techniques adopted for obtaining information:
Primary Data.
Secondary Data.
Primary Data is gathered specifically for the project at hand through personal
interviews with the farmers having tractors of swaraj.
Secondary data is previously collected and assembled for some project other
than the one at hand. It is gathered and recorded by someone else prior to current
needs of the researcher. It is less expensive than the primary data.
Secondary data can be obtained from both external and internal sources.
External data may be collected from books and periodicals, government sources,
media and other commercial sources.
Internal data is that secondary data, which is created, recorded or generated by the
organization.
Secondary data is collected from the reports of the company, books, journals and
internet. Secondary data is gathered from annual reports, official records and standing
orders of the units.
RESEARCH PROCES
Step1:Program Planning
Step 6:Consultation & review
Step 2: Start Survey
Step 3: Survey Development
Step 4: Data Analysis
Step 5: Reporting
ResearchMethodology
RESEARCH TOPIC – Study on customer satisfaction after sales service SWARAJ
CHAPTER-IV
ANALAYSIS AND INTERPRETATION
Q1) How do you know about the dealer ?
INFERENCE
75% of respondents have told that they came to know only through friends, and
the remaining 25% have told that the awareness about the dealers was through
other source.
source Frequency Percent Valid Percent
Cumulative Percent
Friends 30 75.0 75.0 75.0
Others 10 25.0 25.0 100.0
Total 40 100.0 100.0
Q2) Which type of tractor model you have?
MODE
L
Frequency Percent Valid
Percent
Cumulative
Percent
SWAR
AJ-
735FE
4 10.0 10.0 10.0
SWAR
AJ-
835FE
36 90.0 90.0 100.0
Total 40 100.0 100.0
Tractor model
SWARAJ-735FE
SWARAJ-835FE
INFERENCE
From the above table it is clear that only 10% of the farmers use SWARAJ-
735FE and rest of the 90% use SWARAJ-835FE
Q3) Which types of tractor model you buy?
parameters Frequency Percent Valid
Percent
Cumulative
Percent
Economy 28 70.0 70.0 70.0
Safety 9 22.5 22.5 92.5
Others 3 7.5 7.5 100.0
Total 40 100.0 100.0
INFERENCE
From the above table it is clearly identified 70% of the respondents have told
that they bought based on their economic conditions, whereas 22.5% have told
the reason as safety and the remaining 7.5% has given some other reason.
Q4) How do you feel about the service in terms of charges?
parameter
s
Frequency Percent Valid
Percent
Cumulative
Percent
Very high 1 2.5 2.5 2.5
High 6 15.0 15.0 17.5
Moderate 33 82.5 82.5 100.0
Total 40 100.0 100.0
INFERENCE
From the above table only 2.5% of respondents felt that the charges are very
high, whereas 15% felt that the charges are high and the remaining 82.5% felt
that the charges are moderate and they were happy about the charges levied by
the firm.
Q5) what do you think about Quality of work?
parameters Frequenc
y
Percentage Valid
Percentage
Cumulative
Percentage
Excellent 1 2.5 2.5 2.5
Very Good 17 42.5 42.5 45.0
Good 14 35.0 35.0 80.0
Fair 8 20.0 20.0 100.0
Total 40 100.0 100.0
INFERENCE
From the above table it is clearly identified 2.5% of respondents have rated the
quality of work as excellent. Another 42.5% rated it as very good, then 35% of
the customers have told it as good and the remaining 20% rated it as fair.
Q6) what will you say about convenience with the dealer ?
paramete
rs
Frequenc
y
Percentage Valid
Percentage
Cumulative
Percentage
Very
Good
20 50.0 50.0 50.0
Good 12 30.0 30.0 80.0
Fair 8 20.0 20.0 100.0
Total 40 100.0 100.0
INFERENCE
Almost 50% seems to be very convenient with the dealer, another 30% seems to
be convenient with the dealer and the remaining 20% seems to be some what.
Q7) what is the level of comfortness of service ?
parameters Frequenc
y
Percent
age
Valid
Percentage
Cumulative
Percentage
Excellent 1 2.5 2.5 2.5
Very Good 19 47.5 47.5 50.0
Good 13 32.5 32.5 82.5
Fair 7 17.5 17.5 100.0
Total 40 100.0 100.0
INFERENCE
The comfortness in the level of service is measured and it is found that 47.5% felt
very good in comfort, then 32.5% felt good in comfort and the remaining 17.5%
felt fair in comfort.
Q8) After your service visit, did someone from the dealership contact
you by phone or by mail to see if you were satisfied with your overall
service experience?
parameters
Frequency Percentage Valid Percentage
Cumulative Percentage
Yes 35 87.5 87.5 87.5
No 5 12.5 12.5 100.0
Total 40 100.0 100.0
INFERENCE
From the above furnished table it is clearly indicated that Almost 87.5% told
that they will get a call about the satisfaction in service from the company, and
12.5% told that they will not receive such type of call after service.
Q9) In evaluating your most recent customer service experience,
what was the quality of service you received?
parameters Frequency Percentage
Valid Percent
age
Cumulative Percentage
Somewhat unsatisfactory
5 12.5 12.5 12.5
About average 5 12.5 12.5 25.0
Very satisfactory 29 72.5 72.5 97.5
Superior 1 2.5 2.5 100.0
Total 40 100.0 100.0
INFERENCE
2.5% told that the company provides a superior customer service and almost
72.5% were satisfied with the customer service in the company. Another 12.5%
were found to be somewhat unsatisfactory, and then other 12.5% told that they
were average in customer service only.
Q10) what do you think about completion of the service in the time
promised?
parameters Frequency Percentage
Valid Percentage
Cumulative Percentage
Very Satisfied 32 80.0 80.0 80.0
Somewhat Satisfied
6 15.0 15.0 95.0
Somewhat Dissatisfied
2 5.0 5.0 100.0
Total 40 100.0 100.0
INFERENCE
On time delivery of the service was the next factor considered to be very
important and in this regard, 80% of the customers feel very much satisfied with
the timing of the service, then 15% seems to be somewhat satisfied and only 5%
seems to be somewhat dissatisfied.
Q11) Do u think customer service representatives are very polite?
parameters
Frequency Percentage
Valid Percentage
Cumulative Percentage
Strongly disagree
2 5.0 5.0 5.0
Somewhat disagree
1 2.5 2.5 7.5
Somewhat agree
30 75.0 75.0 82.5
Strongly agree
7 17.5 17.5 100.0
Total 40 100.0 100.0
INFERENCE
From the above table it is clear that 5% of respondents are strongly disagree
about politeness of the representatives, 2.5% of respondents are somewhat
disagree about representative’s politeness, 75% of respondents are somewhat
agree and 17.5% of respondents are strongly agree.
Q12) Which of the following qualities of the service representative
stood out? (As being superior)
parameters Frequenc
y
Percen
tage
Valid
Percentage
Cumulative
Percentage
Patient 2 5.0 5.0 5.0
Enthusiastic 15 37.5 37.5 42.5
Listened
carefully
7 17.5 17.5 60.0
Friendly 16 40.0 40.0 100.0
Total 40 100.0 100.0
INFERENCE
From the above table it is clear that 5% of the employees seem to be very patient
to the customers, 37.5% seem to be enthusiastic, 17.5% seem to listen to the
customers very carefully and then attend to their problems and another 40%
were found to be friendly to the customers all the time.
Q13) What do you think customer service representative are
knowledgeable ?
parameters Frequency
Percentage
Valid Percentage
Cumulative Percentage
Strongly disagree
4 10.0 10.0 10.0
Somewhat disagree
4 10.0 10.0 20.0
Neutral 1 2.5 2.5 22.5Somewhat
agree19 47.5 47.5 70.0
Strongly agree
12 30.0 30.0 100.0
Total 40 100.0 100.0
INFERENCE
From the above table it is clear that 10% of respondents strongly disagree that
representatives are knowledgeable and the same percentage of respondents are
somewhat disagree that representatives are knowledgeable, 2.5% of respondents
are neutral, the respondents of 47.5% are somewhat agree with the knowledge of
the representatives and 30% of respondents are believe that representatives have
good knowledge.
Q14) Are they able to solve the problems ?
parameters
Frequency
Percentage
Valid Percentage
Cumulative Percentage
Very Good
20 50.0 50.0 50.0
Good 15 37.5 37.5 87.5
Fair 5 12.5 12.5 100.0
Total 40 100.0 100.0
INFERENCE
Almost 50% of the customers were of opinion that there was a very good
problem solving skill amongst the employees of the firm. 37.5% seems to be of
the opinion that the problem solving skill is good. 12.5% seems to be saying that
the employees have a fair problem solving skill.
Q15) what about the understanding ability of employees about
customer needs ?
Frequency Percentage
Valid Percentage
Cumulative Percentage
Very Good
21 52.5 52.5 52.5
Good 15 37.5 37.5 90.0
Fair 4 10.0 10.0 100.0
Total 40 100.0 100.0
INFERENCE
From the above table 52.5% of the customers were of opinion that the employees
very understanding in nature, 37.5% were of opinion that they were good in
understanding, and 10% of the customers were of opinion that the employees
have a fair level of understanding.
Q16) Would you recommend this dealer to a friend or relative as a
place to have their tractors serviced?
parameters
Frequency Percentage
Valid Percentage
Cumulative Percentage
Definitely 31 77.5 77.5 77.5Probably 4 10.0 10.0 87.5Not sure 4 10.0 10.0 97.5
Definitely not
1 2.5 2.5 100.0
Total 40 100.0 100.0
INFERENCE
Almost 77.5% of the customers were ready to recommend definitely to friends or
relatives, 10% have told they may recommend, another 10% have told that they
may or may not recommend and only 2.5% of the customers seems not to
recommend the services to anybody.
Q17) If you need service again for your tractor, would you return to
this dealer ?
parameters
Frequency Percentage
Valid Percentage
Cumulative Percentage
Definitely 32 80.0 80.0 80.0
Probably 3 7.5 7.5 87.5
Not sure 4 10.0 10.0 97.5
Probably not
Definite not
10
2.50
2.50
100.0100.0
Total 40 100.0 100.0
INFERENCE
From the above table almost 80% of the customers were willing to come back to
the dealer in future. 7.5% of them were not sure whether they would come back,
other 10% have said they may or may not come back and 2.5% of the customers
have said that they will not come back at all.
CHAPTERFINDINGS, SUGGESTIONS AND
CONCLUSION
FINDINGS:
The observations on the survey support the customer satisfaction of swaraj division
mohali, to a greatest extent of 95%. But still 5% of the customers were dissatisfied on
the following grounds such as
delay in delivering,
lack of knowledge for mechanics,
then the charges seems to be high
then there is a complaint as there were repetition of complaints
then some of them seems to be not satisfied with the employees
Just because the complaints were received from only few customers we can’t ignore
this, and hence the following recommendations were made to the company in
improving the level of customer satisfaction.
SUGGESTIONS:
To avoid problems on in-time delivery of vehicles, the company can make a
call after the vehicle is ready, thereby it is possible for the company to avoid
inconvenience posed on the customers. If not the company can increase the
number of mechanics in the service department.
In avoiding cost related dissatisfaction among the customers, the company can
give its customers some special schemes like “one free service” for every ten
services. When it is announced, probably the customers will try to avail that
free service, in turn there is a possibility to increase the customers also.
To avoid repetition of complaints the company can appoint one chief
mechanic to check the vehicle soon after the service is over and before each
delivery it has to be ensured that the chief mechanic checks it promptly.
To avoid dissatisfaction in customer service the company can assign the
customers to a particular employee permanently. Thereby employees will also
try to treat their customers well and the customers also feel free to the
particular employee.
CONCLUSION:
This project dealt with study on customer satisfaction after sales service in
Punjab tractor ltd. Swaraj division. The project was done to know how retain the
customer and thereby improve loyalty.
This study gives the opinions and their suggestions about the swaraj Limited and this
project also gives the view upon the qualities and attitudes of the customers about the
employees of the organisation.
This study also gives the views and suggestions about retaining the potential
customers to the organization and keeps them loyalty to the organization.
QUESTIONNAIRE
A STUDY ON CUSTOMER SATISFACTION AFTER SALES SERVICE WITH
REFERENCES OF SWARAJ DIVISION
1. Name of the respondent:
2. Age :
3. Gender : Male/Female
4. How do you know about this dealer ?
a. Friends & relatives
b. Others
5. which tractor model you have ? a. Swaraj-735FE
b.Swaraj-835FE
6.which quality you have seen before buy the tractor ?
a.economy
b.safety
c.others
7. How do you feel about the service in terms of charges?
a. Very High
b. High
c. moderate
d. Low
8. On your most recent service visit, how would you rate the service department on the following areas?
Excellent Very
Good Good Fair Poor
Quality of work performedConvenience with the dealerLevel of comfortness of service
9. After your service visit, did someone from the dealership contact you by phone or by mail to see if you were satisfied with your overall service experience?
a. Yes
b. No
10. In evaluating your most recent customer service experience, What was the quality of service you received ?
a. Somewhat unsatisfactory
b. About average
c. Very satisfactory
d. Superior
11.What do you think about the completion of the service in the time promised?
a. Very Satisfied
b. Somewhat Satisfied
c. Somewhat Dissatisfied
d. Very Dissatisfied
12. Do you think customer service representatives are very polite ?
a. Strongly disagree
b. Somewhat disagree
c. Somewhat agree
d. Strongly agree
11. Which of the following qualities of the service representative stood out ?(as being Superior)
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
12. What do you think that customer service representative are knowledgeable ?
a. strongly disagree
b. some what disagree
c. some what agree
d. some strongly agree
13. Are they able to solve the problems of the customers ?
a. Very good
b. Good
c. fair
14.what about the understanding ability of the employees about customer needs ?
a.Very good b.good
c.fair
15. Would you recommend this dealer to a friend or relative as a place to have their Tractor serviced?
a. Definitely
b. Probably
c. Not sure
d. Definitely not
16. If you need service again for your tractor, would you return to this dealer ?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
17. If you are not totally satisfied with the Customer Service Representative, please state below the reason(s) for your dissatisfaction …………………………………………………………………… ……………………………………………………………………
18. What recommendations would you offer for improving customer service? …………………………………………………………………… ……………………………………………………………………
Thank you for your feedback.
BIBLIOGRAPHY
# Books
GUPTA SHASHI K.GUPTASHARMA R.K., Marketing Management
# Journals
Annual Reports of PUNJAB TRACTORS LTD.
# INTERNET WEB SITES
www.swarajenterprise.com
#Web Pages
http://www.swarajenterprise.com/http://www.swarajenterprise.com/Swaraj Division_index.htmhttp://www.swarajenterprise.com/Swaraj Divisionannualreport.asphttp://www.swarajenterprise.com/Swaraj Division_enterprise.htmwww. indiaautomotive.net