Professional Documents
Culture Documents
Business development involves evaluating a business and then realizing its full potential,
using such tools as:
marketing
customer service
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Customer Satisfaction
Customer satisfaction is an abstract concept and the actual manifestation of the state
of satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other factors the customer, such as other products
against which the customer can compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
delivered SERVQUAL which provides the basis for the measurement of customer
satisfaction with a service by using the gap between the customer's expectation of
performance and their perceived experience of performance. This provides the researcher
with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the
disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml and
Berry as two different measures (perception and expectation) into a single measurement of
performance relative to expectation.
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Need of the study
the private enterprises have shown a lot of interest in these industries. Even
though the product is small it plays an important role in the other industries
flexibility.
The strategies adopted by the company to sell the products and to reach the targeted
sales have a greater importance into bringing out the best possible result from various
elements of making combinations.
So through this project we can know the HMT share in the market and we analyse the
causes for sickness and we also know the marketing activities of the company.
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Importance of the study
The study carried out will be of significant help in the following aspects.
The present study provides an insight into the varies aspects of marketing Mix
practices of the unit and examines the reactions of the other manufactures to
these marketing practices.
This will be of great help to the units under study, which in turn can foreword
some of the conclusions and Suggestions to the HMT Machine Tools Ltd (PRAGA
Division) for incorporating in their future Marketing strategies.
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Objectives of the Study
To evaluate the promotional strategies followed by the company and suggest some
measures for any drawbacks in those strategies.
To know the customer level of satisfaction and to know the Business Development.
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To know the reasons behind the sickness of HMT Machine Tools ltd-PRAGA
DIVISION.
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Methodology of the Study
This chapter includes various tools and techniques that are used for investigation.
Methodology includes a systematic way of collecting the data through sample design,
analyzing it, processing the data, interpreting the data for requirement.
DATA SOURCES
Primary data.
Secondary data.
Primary data:-
This is first hand information collected from original Sources through various
methods such as,
• Observation,
• Interviews, etc
Primary data collected by interviewing persons chosen for this study. They
include students for various academic backgrounds. For the purpose of this study structured
or directive interviews are employed.
Observation
Interviewing
Mail survey
Experimentation
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Simulation
Projective techniques
Questionnaires
Secondary data:-
secondary data is collected from sources which contain data that has been
collected and compiled for another purpose. It may be defined as data that for an
earlier purpose other than currently Pursued. The seconary study consists of.
Related websites
The total number of consumers is large in size in which 100 people are taken as sample.
A convenience sampling method has been conducted for the study.
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Scope of the study
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Limitations of the study
1. Period
The report is about the marketing mix practices In HMT tools ltd-PRAGA
DIVISION.Since the duration of the study was 4 weeks , data pertaining to marketing
mix activities could not be collected in detail due to limitation of time. Moreover the
study was undertaken during the peak season of production when the factory personnel
were very busy. Therefore the data collection had taken additional efforts. . Some other
Major part of the secondary data has been collected from past records ,magazines and
newspapers.
2. Accuracy
In a project like this , one cannot claim 100% that the information or data collected is
accurate. However every possible effort has made to make it genuine and authentic. it is
possible that Some errors might have kept in while collecting data or in the report due to the
following reasons.
3. Other limitations
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Time is a constant.
Introduction
Machine tool industry India comprises about 450 manufactures with 150 units in
the organized sector. Ten major companies of this industry contribute almost 70% of
production in India. And over three quarters of total machine tool production in the country
comes out of ISO certified companies. Many machine tool manufactures have also obtained
CE making certification. In keeping with requirements of the European markets. The industry
has an installed capacity of over Rs. 10,000 million and employed a workforce
totaling 65,000 skilled and un skilled personnel.
Machine tool industry in India is scattered all over the country. The hub of
manufactures activities, however, is concentrated in places like Mumbai and Pune In
Maharashtra; Batala, Jullundur and Ludhiana in Punjab, Ahmadabad, Baroda, Jamnagar,
Rajkot and surendernagar in Gujarat; Coimbatore and Chennai in Tamil nadu; some Parts in
East India; and Bangalore in Karnataka.
Bangalore is concerned as the as the hub for the Indian machine tool industry. the city,
for instance houses HMT Machine Tools Ltd, a company that manufactures nearly 32% of
the total machine tool industry’s output.
The industry’s prospects mainly depend on growth of engineering Industries. The city
sector of machine Tools is the automotive, automobile and defense ancillaries, railways,
agriculture, steel, fertilizes, electrical, electronics, textile machinery telecommunications, ball
and roller bearings, industrial values, power –driven pumps, multi-product engineering
companies, earth moving machinery, compressors and consumer durable like washing
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machine, refrigerators ,television sets, watches, dish-washers, vacuum cleaners, air
conditioners,etc.
Efforts within the industry are now on to better the feature of CNC machines, and
provide feature value additions at lower and lower costs , to meet specific requirements
of users. Based on the perception of the current trends and emerging demands, CNC
segment could be the driver of growth for the machine tool industry in India.
History
This sector has had a long history of growth in India, beginning in the 1940s. From
early 1950s to mid 1970s, the machine tools industry evolved under an umbrella of protection
in which the growth was based on import substitution. The Government of India set up the
Hindustan Machine Tools (HMT), which provided a nucleus for development of
technological capabilities and skills. It also spearheaded sprouting of several ancillary units in
the private sector by providing support and thus became local suppliers of components, etc.
During the 1950s to mid-1960s, this sector bolstered in confidence and began to
absorb imported technology and manufacture machine tools to specifications given by
foreign collaborators. It also initiated developmental work directed to modifying machine
tools and developing variants of machines for which design had been acquired by the
purchase of Licenses.
The next phase of liberalisation of policies of the government allowed selective
imports that made it imperative for the domestic industry to catch up with quality
specifications of imported machines, at reduced costs and to adopt best practices for reducing
technology gaps.
In the 1980s, the industry developed further and was able to acquire know-how in
machine tool technology in order to reproduce and even develop new machine tools,
particularly special purpose machine tools (SPMs). The national expertise developed over the
years provided the needed human resources to initiate creative modified versions of existing
machine tools manufactured under licence, thereby further paving the way towards self-
reliance through aggressive R&D in India.
These efforts resulted in the setting up of several entrepreneurial enterprises that
began manufacturing machine tools leading to increased employment opportunities for
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engineers and widening the scope of indigenous R&D projects and development of enhanced
technological capabilities over the next decade.
As a result of the various initiations, output of the Indian machine tool industry,
witnessed a meteoric rise from Rs. 290million in 1970-71 to Rs. 1,185 million a decade later.
And by the time of the economic liberalisation in 1990-91, turnover ofthe industry touched a
new high of Rs. 4,135 million.Indian machine tool industry was among the first industry
sectors to be thrown open to global competition in theeconomic reforms of the early Nineties.
That, however,did not deter the industry, to face the onslaught challenges – andtowards this
direction improved features of their machines, enhanced productivity, increased reliability
and performances,and embraced TQM practises.
Efforts of domestic machine tool manufacturers made a paradigm shift that led to a
manifold increase in performance.In 1996-97, the industry achieved a turnover of Rs. 8,250
million. A slump in the Indian market in the following years had a severe impact on the
fortunes of the Indian machine tool industry.
The spurt in the country’s manufacturing activity since 2003-04 led to increased
potential for Indian machine tools,which got a fillip from the automotive sector. The booming
automotive and auto ancillary industry in India is currentlydriving growth and the
competitiveness of the Indian machine tool industry. Domestic manufacturers are fulfilling
stringent
tolerances, and process capability requirements of the highly demanding auto industries. The
focus of several Indianmanufacturers currently provide machine tools with integrated Total
Productive Maintenance (TPM) features. This hasincreased the potential and improved the
competitiveness of Indian-built machine tools.
It is evident that 2004-2005 as well as the previous year were more than watershed
phases the machine tool sector in India. Growth of the Indian economy continues at an
increasing pace and for most machine tool manufacturers, orders continue to flow and are in
plenty. The same holds true for importers, who have also thrived from the burgeoning
Indianmarket. The share of indigenous and imported machine tools in the Indian market is
currently in the ratio of 40:60.The strength of the Indian machine tool industry was
galvanised by Indian Machine Tool Manufacturers’ Association
(IMTMA) – the apex industry body of machine tool and manufacturing solutions,
which currently represents over 80 per cent of the machine tool industry in India.
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Industry Strengths
The machine tool industry in India is recognised for:
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Core Competency
The Indian machine tool industry manufactures almost the complete range of metal-
cutting and metal-forming machine tools. Customized in nature, the products from India
comprise conventional machine tools as well as computer numerically controlled (CNC)
machines. There are other variants offered by Indian manufacturers too, including special
purpose machines, robotics, handling systems, and TPM-friendly machines.
One of the significant developments in machine tool industry in recent times have
been the Computer Numerically Controlled (CNC) machines. Emergence of CNC machine
tools and its dominance over the last few years in the overall product segment stemmed from
its value-added features, such as enhanced productivity, higher precision, increased
reliability, better finishing, and improved aesthetics and design. Achievement of higher
growth and increased share of CNC machines in the overall output surmises the commitment
of Indian machine tool manufacturers to providing competitive manufacturing solutions, now
at cost effective prices.
In terms of key product segments, high growth areas for the Indian machine tool
industry include turning centers, machining centers, grinding machines, and cell
manufacturing, amongst others. The other emerging demand is for total manufacturing
solutions, whereby users seek to economies on manufacturing cost and time. Winners from
the losers Efforts.
.
Technology Obsolescence:
Technology obsolescence in the machine tool business is extremely rapid. Product
lifecycles are declining and currently average life cycle is no more than 3 years! Thus, in a
globalized India, SMEs have been and will continue to face challenges they have not seen
before. In the past, most of the products have been a result of ‘Reverse Engineering’. Unlike
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the Japanese and Koreans, the Indian manufacturers have not graduated to the next level of
s‘Improving’ the technology of reverse engineered products. Thus, product technology
obsolescence is a major issue facing the Indian machine tools industry today.
The growing competition and technological developments in this sector are having
inevitable effects on the Indian machine tool industry, as a whole. The Indian machine tool is
faced with typical problems in the emerging globalization scenario as under:
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Performance of Indian machine tool industry
High growth momentum
The financial year 2007-08 was yet another landmark one for the Indian economy and
the industry, generating a great deal of optimistic growth and promising outcome.
The year was marked by 9 per cent plus GDP growth – earning the accolade of being
one amongst the fastest growing countries in the world.
The surge in demand was rampant across Indian industries, especially in the
engineering and the manufacturing sector. The key aspect about manufacturing industry’s
performance was its efforts to achieve excellence in quality, design and innovation. The
country also posted optimistic results in agriculture and in the services stream.
For the Indian machine tool industry, 2007 was a year on the decline, and is expected
to result in reduced orders from the Indian and overseas markets. Metalworking machine tool
output of the Indian industry worth Rs 17,525 million, registered a growth of 5 per cent
during January – December 2007. Much of the growth in India’s metalworking machine tools
came about because of enhanced requirements from the automotive sector auto ancillary
industry, defence, railways, job shops and small-scale industry units.
Metal-cutting & metal-forming tools
Metal-cutting segment continued to account for 88 per cent of the total output of
machine tools in India. In 2007, metal-cutting machine tool output worth Rs 15,357 million,
led to a growth of 4 per cent.
CNC & conventional machine tools
In keeping with the focus of the Indian industry towards enabling manufacturing
excellence, CNC machine tools comprised bulk of the produce from the Indian stable. This
segment had over 70 per cent share in the total metalworking machine tool output in 2007.
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Export scenario
The focus of Indian manufacturers to expand their potential to other frontiers resulted
in tapping new opportunities in overseas markets, albeit marginally. As a result, exports
increased by 98 per cent in 2007. A total of 395 machine tools worth Rs 1,475 million were
exported by the Indian industry during January December2007.
Indian manufacturers exported to 36 countries, including prominent ones such as
Italy, Canada, Germany and the U S.
The highlight of the machine tool exports in 2007 was the performance in the CNC
segment CNC machines registered a growth of 100 per cent over the previous calendar year.
YEARS EXPORTS(crores)
2004 4817485
2005 5178428
2006 10111491
2007 12556516
2008 16796746
2009 175251474
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Imports of Indian machine tool industry
Industry resulted in a zoom-phase for importers. Machine tool imports rose by 47 per
cent to register a total value of Rs 55,640 million. With this hike, imports captured 75 per
cent of the Indian market share.
The bulk of the imports comprised metal-cutting machine tools. And within this
segment machining centres, turning centres and grinding centres formed the largest chunk of
imports. These three machine categories captured 40 per cent of the total
Roadmap
The Indian machine tools industry has reinvented itself in terms of its product range
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In the last one and a half decades. Further, the emphasis was on standard machines whereas
today there is a greater focus on NC and CNC machines. Technology and enhanced quality as
well as cost competitiveness have therefore improved significantly. On the other hand,
imports became easier thereby critical components required for machine tools manufacturing
could be easily imported and at lower prices.
SPM manufacturers however feel that they face little threat since they manufacture
specialized machines and they operate in a niche market with a high competitive advantage
due to the intimate customer relationship. However with increasing customer preference for
flexible machines the SPM manufacturers need to realign their product range and strategies.
There are still a few SPM’s which are not manufactured in India, like the ones catering to
explosives manufacturing.
Reduction in duties have however helped domestic companies in reducing their costs
since certain items used by CNC manufacturers like ball screws, servo drives, hydrostatic
drives up to 20 KW and hydrostatic spindles which are not manufactured in India necessarily
have to be imported. To encourage value addition and to help the industry to be more cost
competitive,
GOI should reduce customs duty to 5% on the following items not manufactured in India
CNC systems and its parts
Servo Drives/Motors covered under tariff head 85.01 or 85.04.
Precision spindles covered under tariff head 846693
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Ball screws covered under tariff head 8583
LM Guideways covered under tariff head 848280
Precision bearings covered under tariff head 8482
Indian companies with financial resources and risk appetite should try to get into the
manufacturing of the above items, which will help the machine tools industry
immensely.There is a huge market for retrofitting of conventional and NC machines to CNC
machines and this market will evolve only when customers perceive that they can get the
products and services at a lower cost.
The constant threat from imports has compelled the domestic companies to look
internally and made them improve their products, quality, services and delivery. With the
signing of FTAs and RTAs/PTAs, domestic manufacturers feel that they need to upgrade
their technology through technology transfer or in-house R&D and reduce costs through
innovation and productivity improvement. Companies also need to enhance their production
capacities to meet the delivery requirements of the customers and focus more on improving
further quality and after-sales service.
Some companies are gearing up to face the threat of ever-increasing imports by
operating in a very narrow technology band and niche market and reducing their product
reliability gap.
These FTA/PTA agreements will also open up the export market for companies who
have products with competitive advantage in the export market. International manufacturers
are already keen to use India as their outsourcing destination. The country imports nearly
twice what the domestic machine tools industry produces, to meet the requirement of
machine tools for industry in all segments.
The share of the Indian machine tools industry in total consumption is around 36%,
pointing to an obvious need for the industry to further develop its products and volume to
meet the requirements of the Indian user sectors. A substantial part of the imports is in
specialized machines of high technology, very large machines and machine types which are
not manufactured in India.
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Customers are increasingly seeking flexible machine tools that can fabricate a diverse
range of specific moulds and dies.A common trend in the market reveals that a machine tools
user today can get his job done with less expensive mix of machines. There is a new breed of
machines called ‘just enough’ machines. They are designed such that the machine is just right
for a particular job (minus sophisticated features that are hardly used) at a reasonable cost.
This is achieved only through higher interaction of the user industry with the machine
builders.
The industry needs to expand its range of high precision machines and respond to
demands for shorter mold lead times via the introduction of automated production systems.
They also need to concentrate on technologies for machine tools required for the growing
industries like automotive, defence, aeronautics, space, steel, metals and the engineering
industry since these industries will have greater investment in the near future both in Asia and
beyond. The main focus should be on optimizing the process chain of the customers
byshortening the manufacturing time.
Industry should invest more on customer driven and market oriented research and
development.
Introduction
HMT Machine Tools Limited Praga Division Hyderabad is one of the leading
Machine Tool manufacturing units in India established In 1943. HMT products are well
known in the field of HMT Machine Tools Limited Praga Division . The company is
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organized in four divisions-via the Machine Tools forge, foundry and CNC Division which
pulsates with the activities of 565 employees turning out a wide range of products.
The four divisions, equipped with modern facilities for design, development and
manufacture of Machine Tools are manned by qualified personnel with proven record of
technical knowledge an exquisite craftsmanship acquired over a period of 60 days.
History
HMT Machine Tools Limited Praga Division , was incorporated as a joint stock
company in private sector in the Year 1943. Technical assistance of Czechoslovakian
engineers was sought to make the beginning. Name HMT Machine Tools Limited Praga
Division originated from this association with Czech national after Prague this industry.
HMT Machine Tools Limited Praga Division is proud of its diverse range of
Machine Tool- the cutter an Tool grinders,. mlling Machines, copy lathers, thread rolling
Machines and HMT Machine Tools Limited Praga Division CNC Machines which keeps
pace with the ever-changing technology in addition the company also manufactures a wide
range of industrial foregoing for Railways Automotives an ordnance applications.
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HMT Machine Tools Limited Praga Division wisest investment has been in its
excellent collaborations with world famous names like Jones and shipman of UK for surface
grinding and cutter and Tools grinders Gambian of France for milling machines, scoffer of
France for thread rolling machines,
PRECISION
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RELIABILITY.
ADAPTABILITY.
GENUINE CONCERN.
ASSURENCE IN QUALITY.
Mission Statement
Vision
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Continuous product upgration.
Quality Policy
Products of PRAGA
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1. Thread Rolling Machine
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5.Cutter and Tool Grinder
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8.Jaw and Independent
HMT-MTL-PTH
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Chairmen
Managing Director
General Technical
Manager
Asst Board
SC&ST&OBC CELL
Asst GM (HR)
Mgr (HR&S)
DM
DM Supervisor Joint &Officer (HR&S)
(HR &Training) (legal )
Senior
Joint Supervisor Asst -B sub
officer (HR) inspecto
Asst -B
Process at PRAGA
PROCESS AT PRAGA
DEMANDS
OF CUSTOMER
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R&D P.P.C R.E.D
MARKETING
MATERIALS
ASSEMBLY
PRODUCT
CUSTOMERSATISFACTION
The R&D department provides the drawings of components and assemblies to the
PED. R&D makes some modifications is the standard machine to suit the requirement of a
particular customer.
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P.P.C. is a link between manufacturing department and materials department. It comes
to know of the customer requirements through the marketing department and decides the
sequence of operations as per the sales plan.
The main function of this department is tool design and tool planning it receives the
component drawing from R&D and designs the Tools required to produce those components
and sends them for assembly.
The chief activity of this department is to procure raw materials to manufacture products
and tools as inferred from the rout card prepared by P.P.C. It also procures some bearings,
forgings, castings etc.
The machine manufactured in M.t.- 1 are cutter and tool grinder and surface
grinder. On the whole , M. T.-1 caters to the production of heavy components M.T-11
mainly manufactures smaller components various rolling and grinding machines used in
M.T.11 are:
2.thread formed rolling machine – used for the manufacture of automobile parts.
Accessory dept
It receives the raw materials from materials department to produce chucks. which are
job holding devices. This department produces two type of chuck that is, lathe chucks used
in conventional lathes and over chucks in CNC machines.
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stage of operation analysis the variation and takes corrective action against it . final
inspection that is performance tests of machines is done in assembly.
This department processes the data related to pay roll, inventory man machine
Utilization etc. It also acquired the data related to provider. Fund trust, income tax evaluation
and return etc. attendance of the workers is also taken care by this department.
1. Horizontal machining centers has axes(x, y, z and rotary axes) and is used in the
Production of automobile and defense parts.
2. Horizons and vertical milling machines are four axes machines used for milling and
drilling.
3. Grinding and Plano – milling machines used for roughing only. These are not
Computerized.
All the division of the company have received the certification of quality systems In
order that the products and processes of manufacture are well accepted in domestic and
international marks. The company has also received ‘CE marketing’ for its surface
grinding machines, which is mandatory for exports to EU countries and UK. The company
Proposes to continue with these accreditation.
SWAGAT - WELCOME
SUCHANA - INFORMATION
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SAHAYUG - COOPERATION
SUVIDHA - FACILITY
SURAKSHA - SAFETY
Marketing Department
This departments meets the demands of the customers and gets orders for the company by
doing some promotional work like ,
Trade work
Advertising
Exhibition.
In this process 37% of the machine value is collected at the time of order and remaining
at the time of dispatch. The annual target of HMT Tools ltd-PRAGA Division is about 54
cores.
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The company has a marketing department headed by general manager.He is assisted by a
team of professionals operation from the headoffice at HyderaBad and from the regional
offices of the company.The products of the company are being marketed directly and also
through dealers.
The company undertakes direct marketing.,mainly in the case of machine tools and
forgings, through a network of regional offices located at different cities in INDIA.
The regional offices book the orders ,collect advances, liase with the Head office and
deliver the products to the customer.The engineers and professional at the head office abely
assist the regional office.
The company has also developed a network of dealers to market precision , machine tools
accessories. This network covers all the major industrial centers in the country. In addition
,the company has recently appointed M/S Oriental Engineering company ltd of Calcutta to
market companys products and projects in North East India.
HMT TOOLS LTD follows the following procedure for catering the needs of customers.
Identification of
Prospective
customer
Receiving enquiry
enquiry
Sending
quotations
Conducting
negotiations
Order
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Follow up of order
execution
Installation
After sales
service
Custome
r
Receiving of enquiry
Send quotations
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Negotiable and discuss with customers provide any explanations and clarifications
required by them. Agree on price, commercial terms and specifications. Receive
acknowledgement copies to concerned section.
Follow up with concerned sections for order execution such as production Planning,
Production and quality assurance. If spares and accessories are not available they are
arranged for manufacturing.
Dispatch clearance
Customer supplied trail components and the raw materials for job orders are
received by BDCC and are maintained in stores at designated areas. Morecover company
shows huge concentration on job orders.
HMT TOOLS LTD giving after sales service through Reconditioning and retroficatins
and by maintaining techniciens.
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Conduct product performance analysis and record. the feedback of customer complaint
analysis will be communicated the customer For necessary action.
Every company needs to take feedback and suggestions from customers.Because their
suggestions are very use full foe improving our products are service.
Like,
Re conditioning
Retrofitting
Job Orders.
Praga had maintained quality standards and Company products were well known for
Precision and maintained quality.
The company’s products have been well received by its customers in the past mainly on
account of:
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Timely availability of spares and accessories
From the year 1943 to 1990 there was only one or two manufacturers of Machine
Tools in India catering to the needs of Industry. The company products are monopoly in the
markt and very few competitors.PRAGA enjoys with huge profits in between 1986-1996 like
30-50 crores.
During the period 1980 to 1990, Government had increased defense budget and they
were in the market for various machine tools and PRAGA continuously get orders from
Defense Dept Of INDIA.
During this time, praga had concentred only on Defence and Government organizations
neglecting private sector. Compnayhas not tried to penetrate in the market and functions “
Seller market”. Company never tried to get market information and not reached inside the
market. Company never tried to get market feed back what customer really needs and their
changing requirements.
From the year 1990, the company started facing competition from the Indian
manufactutrers and there was an end to their monopolistic market and started sever
completion quality wise and price wise and also due to globalistion, government has
encouraged manufacturers in the small scale sector and also allowed companies to import
machine tools. Consequently there were flood of second hand machine tools entered into the
market.
By these reasons the Downward trend in both sales and production started in the
year 1993-1994.
Sickness
PTL suffered erosion of its peak net worth of rs. 2059.00 lakhjs achieved in 1989-90
and was referred to the Board for Industrial and Fianncial Reconsitructioin (BIFR) in 1997.
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Reasons for down trend in the business of HMT
Pricing
Due to severe competition from private sector companies, praga could not cope with
their mainly with price. In the same time praga is keeping on increase their prices due to cash
crunch and also hike in salaries. The prices quoted by competitors are almost 30% lower to
the praga price.PRAGA Tools Pricing affected by following factors.Those are,
Depreciation of Machines
Surplus manpower
Wastage
Other factors.
Now we can see the above factors how the prices of PRAGA are increased..
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S.NO Name of the Company Price in Lakhs(Cutter and
Tool Grinder)
From the above table we can say that the pricing of Praga is not very competitive as
compared to its competitors. Customer generally prefers reasonable price .But Company
failed to attract the customers.
In the above table we observe competitive pricing of HMT comparing to other nearest
competitors. So let we see how prices of HMT Products increased year by year
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S.No PRODUCT NAME MODEL 2007-2008(PRICE 2008-009(PRICE
NO OF MACHINE) OF MACHINE)
So by observing the above table the prices of each and every product increased compared
to previous year due to the following reasons. Those are
Depreciation
Repairs of Machinery
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Delivery time
The main reason behind the Company failure is Poor Delivery Performance. The
success or failure of the any company should depend up on customer expected delivery time.
But due to the below reasons cos gets failure to reach the customer expectations towards the
delivery time. We can easily understand by seeing the below Table.
2 Surface Grinder-451 6 8
3 Surface Grinder-455H 14 16
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By observing the above table we can easily find out the variations in delivery of product
between two different years. The main reasons for in adequate delivery time is,
Machine Breakdowns,
Human Interruptions.
Order inflow
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Order inflow and Sales of Cutter and Tool Grinding Machine for the last 10 years
2000-2001 21 54.80
2001-02 15 46.27
2002-03 9 28.84
2003-04 10 38.02
2004-05 23 82.5
2005-06 26 115.2
2006-07 32 126.1
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2007-08 20 86.44
2008-09 27 145.5
2009-2010 20 94.51
The order flow of the company for Tool and Cutter Griding machine is influenced by
different factors like lack of financial resources and lack of facilities.
Promotional Activities
The amount spent on advertisements, is almost nil. Most of the customers did not
aware that praga which was shifted their factory from kavadidguda to Balangar. In the
absence of communication about shifting, many of the customers felt that Praga was closed.
Company never tried to for diversities and the products which were their butter and bread are
almost obsolete. In the mean time awareness among the customer increased and they were in
a demanding position what they require:”BUYER MARKET “Praga does not have proper
customer data base of their customers.
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Recruitment
Praga did not recruit any engineers for the last 10 years. The employees which they
are almost right side of 40s. The technology they are using was outdated. They have not
upgraded their technology for the last 2 decades.
Competition:
Example: Thread rolling machines. Once praga was monopoly in the market. Now
there ws stiff competition from MTE Industries,Hyderabd. The company which was
explained in the year 1985, sold machines almost equal to Praga in the shrot span of time.
The company made CNC Thread rolling mahines and their turn over was equal to Praga.
Customer satisfaction
There is nothing more divesting to PRAGA business than the loss of our various
customers due to delay in delivery of machinery, spares and in providing after sales service.
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When a customer becomes dissatisfied and strops buying from us, our loss is far greater than
the sales revenue. We also lose the investment made in securing the customers in first place
and more importantly we undermine our ability to grow.
- A.V KAMATH
“A customer is the most important visitor on our premises. He is not depending on us. We
are dependent on him, he is not an outsider on our business. He is a partof it . we are doing
him a favour by serving him. He is doing us an opportunity to do so”
MAHATMA GANDHI
HMT tools ltd-PRAGA division has a positive attitude about customer complaints.
We believe that our future depends upon our ability to retain customer needs and ensure their
satisfaction.
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• Who are not get desired level of service from the product
Every Complaint
We take complaints from internal customers seriously and believe that org with satisfied
employee finds it is easier to make customer satisfied.
Reconditioning
Retrofitting
Job Orders
Customers of HMT
2. Engineering industry
4. Automobile manufacturers
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6. Textile industry
Value Prepositions
HMT tools products and services offer the following advantages to customers:
Quality products
Reasonable price
On time delivery
And HMT takes continuous feedback from their customers and always give after sales
service through Qualitative engineers.
And HMT offers discounts to customers and offer qualitative products with
reasonable price.
Business development
Business development is a broad term applied to the process of strengthening ties with
existing clients as well as cultivating customers in other sectors of the consumer market. In
order to accomplish this goal, business development normally crosses the traditional barriers
between sales, marketing, customer care, operations and management in order to promote this
process of expansion on more than one level. This means the business development specialist
50
must exhibit a degree of competence in many different areas in order to identify and
capitalize on growth opportunities.
One of the foundational aspects of business development is to assess the current assets
of the company as they relate to the maintenance and expansion of the business. To this end,
the business development specialist will work closely with sales and marketing professionals
to identify the degree of penetration already enjoyed by the company in various sectors of the
consumer base.
At the same time, the specialist will also work with customer care professionals to
assess the feedback gathered from existing clients on the perception of the company and its
products. This type of activity can often identify ways to refine current sales and marketing
techniques in order to capture a wider share of consumers within sectors where the business
already has a presence. At the same time, the addition of the data acquired through customer
care contacts may help identify applications for the product line that are not promoted at
present and could lead to capturing new markets if marketed properly.
The process of business development can be applied to just about any corporate
situation. Even companies that are small need this type of activity in order to remain stable
and to achieve growth over time. Often, the inclusion of at least one person who is focused on
the activity of business development makes it possible to capture a view of the company that
is hard for people with responsibility for specific functions with the organization to achieve
without help.
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development consultant in order to evaluate current circumstances and identify strategies for
the creation of future growth.
Business development involves evaluating a business and then realizing its full potential,
using such tools as:
• marketing
52
• customer service
sales-oriented (client-facing); or
• pre-bid phase
• bid phase
• post-bid phase
Customer satisfaction
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Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business and is part of the four of a Balanced Scorecard.
Customer satisfaction is an abstract concept and the actual manifestation of the state
of satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other factors the customer, such as other products
against which the customer can compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
delivered SERVQUAL which provides the basis for the measurement of customer
satisfaction with a service by using the gap between the customer's expectation of
performance and their perceived experience of performance. This provides the researcher
with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the
disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml and
Berry as two different measures (perception and expectation) into a single measurement of
performance relative to expectation.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement in terms
of their perception and expectation of performance of the service being measured.
Methodologies
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This section may contain excessive, poor or irrelevant examples. You can improve the
article by adding more descriptive text. See Wikipedia's guide to writing better articles for
further suggestions. (March 2009)
J.D. Power and Associates provides another measure of customer satisfaction, known
for its top-box approach and automotive industry rankings. J.D. Power and Associates'
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marketing research consists primarily of consumer surveys and is publicly known for the
value of its product awards.
Other research and consulting firms have customer satisfaction solutions as well.
These include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the
Stages of Excellence framework and which helps define a company’s status against eight
critically identified dimensions.
For Business to Business (B2B) surveys there is the InfoQuest box. This has been
used internationally since 1989 on more than 110,000 surveys (Nov '09) with an average
response rate of 72.74%. The box is targeted at "the most important" customers and avoids
the need for a blanket survey.
TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises,
Product/Services, as well as performance measurement. The implementation of a customer
service standard should lead to higher levels of customer satisfaction, which in turn
influences customer retention and customer loyalty.
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Customer focus
Materials are supplied as per the customer’s order, viz.,
Quantity.
Variety.
-Timely dispatched.
Type of packing.
Transport Selection.
In addition to our regular products, request for special products are received. It is the
endeavor of the company to see that special characteristics are in built into the products, to
satisfy the specific requirement of the customer. Some of the special requests are :-
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Special packaging requirement.
Special colours of paints used etc.
Customer grievances
As with the business, certain grievances would also be arising. Prompt action is taken to
remove any irritants so that grievances are reduced at the first place. Main grievances that the
unit gets are :
Supply of material at short notice period in the season. We do inform, the customers,
the minimum time required to supply the materials.
Quality related problems are very few and the reasons are quality raw materials are
used.
Proper processes are adopted at different stages of manufacture etc.
Customer feedback
As a part of ISO-9001:2000 system, the company collects feedback from the customers at
regular intervals. Such feedbacks are by various methods, viz.,
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It is very important to have good communication between the unit & the
CUSTOMERS for the growth of the business. Various steps are taken to achieve the above
goal.
Product literature
Each of our distributor / dealer are given PRODUCT LITERATURE, which explains
various factors, such as type of materials used, performance characteristics, prices etc. which
will help in understanding the product quality and also compare with similar products
59
available in the market.
Product data
In addition to the above, related product data, i.e. how to install, how to maintain,
related materials required to install & use our products etc. are provided.
Service information
Installation & maintenance booklet gives broad guidelines and helps in carrying out
minor service requirements. In case of major problem, the dealer distributor will help in
carrying out the services.
In general the company offers warranty for the products for a period of one year, for
any kind of manufacturing defects.
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The data collected from the primary and secondary sources have been coded tabulated and
analyzed for interpretation using various statistical techniques. A sampe of 100 was surveyed
regarding the respondent’s awareness their satisfaction levels and speed of service etc.
The data thus collected is tabulated, analyzed and interpreted using various statistical
techniques as follows.
COMPOSITION OF STUDY:
Mathematical tools:
Tables, pie charts and bar charts are the mathematical tools for the analysis.
61
1) How long have you been dealing with Praga tools ltd?
Table No.1
Fig .No.1
INTERPRETATION:
From the above table we can conclude that the major number of respondent’s 48 are
dealing with Praga from 0 - 5 years. The next major numbers of Respondents are dealing with
5-10 years .13 respondents are dealing with Praga From 15-20 years .only 3 respondents are
dealing from 10-15
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2) What are the influencing factors for dealing with Praga tools ltd?
Table no 2
Fig .No.3
INTERPRETATION:
From the above table we can conclude that the major numbers of respondents felt
That good quality is the factors that deal that is , 46 which comprises of 46% of the Total.
Some respondents are similar that is pricing and after sales service that is 22 And 22 which
comprises of 22% & 22% respectively. Only few have responded For Good will that is
10 which comprises of 10% of the total
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3) How fast the quotations offers are provided by us?
TABLE NO.3
FIG NO.3
INTERPRETATION:
From the above we can conclude that the major numbers of respondents felt that
Quotation offer by Praga is “FAST” that is, 72 which comprises of 72% of the total. Some
respondent’s “VERY FAST” that is 22 which comprises of 22% respectively. Only few have
respond for “SLOW & VERY SLOW” that is 4&2 which comprises of 4%&2% of the total.
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TABLE NO.4
Fig .No.4
INTERPRETATION:
From the above table we can conclude that the major numbers of respondents felt that
the PRICING IS NEUTRAL and GOOD VALUE that is, 58&38 which comprises of 58%
VALUE that is 2&2 which comprises of 2% respectively.
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TABLE NO.5
FIG.NO. 6
INTERPRETATION:
From the above table we infer that the major number of respondents feel that the
Customer and business response at Praga tools ltd is ‘FRIENDLY’ and this is followed By
“VERY GOOD”.
Table No.6
S NO PARTICULARS NO.OF PERCENTAGES
RESPONDENTS
1 Fast 18 18%
2 Friendly 74 66 74%
3 slow 8 8%
4 curt 0 0%
TOTAL 100 100%
FIG.6
INTERPRETATION:
From the above table we infer that the major number of respondents feel that the
Customer & Business response at Praga Tools Ltd.Is “FRIENDLY” and this is followed By
“VERY GOOD”. And only one respondent feel that it is poor.
Table No.7
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S NO PARTICULARS NO.OF PERCENTAGES
RESPONDENTS
1 Exceeds 10 10%
Expectations
2 Meets 75 75%
Expectations
3 Below 15 15%
Expectation
Total 100 100%
FIG.7
INTERPRETATION:
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From the above table we infer that the major number of respondents feel that the
Delivery schedule at Praga Tools Ltd.”MEETS EXPECTATION’ this is followed by
“BELOW EXPECTATION”
8) How do you like to grade the service provided by the servicing men?
Table No.8
Fig.No.8
INTERPRETATION:
From the above table we infer that the major number of respondents feel that the
Service provided by the service men at Praga Tools Ltd.Is “EXCELLENT” and this is
Followed by “VERY GOOD”. And only one respondent felt that it is poor.
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9) How do you rate our relationship with our customers?
Table No.9
Fig .No.9
INTERPRETATION:
70
From the above table we infer that the major number of respondents feel that the
Relationship with customer is “VERY GOOD” and this is followed by “EXCELLENT”. No
Respondents had complained about the customer relationship.
Table No.10
Fig .No.10
71
INTERPRETATION:
From the above table we infer that the major number of respondents feel that the
Machines /Accessories supplied by Praga Tools Ltd .Is ‘REALLY USEFUL “and this is
Followed by “QUIT GOOD”.
Table No.11
Fig .No.11
72
INTERPRETATION:
From the above table we infer that the major number of respondents
feel that the Work of Praga Tools Ltd .Is “GOOD” and this is followed by “VERY GOOD”.
12). Do you receive sales after service warranty at the time of delivery of
Table No.12
Percentage of response 93 2 5
2% 5%
Yes
No
No idea
93%
Fig .No.12
INTERPRETATION:
The above figure represents the respondent’s response to know whether the customer
received a copy of repair order at the time of delivery of the Machine tool at the workshop.
From the above figure it is understood that 93 percent customers have said that they received
a copy of repair order at the time of vehicle delivery. 2 percent customers said that they not
received a copy of repair order and 5 percent have said no idea.
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13.) At the time of delivery of your Machine tool, is the processing
Table No.13
Percentage of response 93 2 5
2% 5%
Yes
No
No idea
93%
Fig .No.13
INTERPRETATION:
The above figure represents the respondent’s response to know whether the
processing (preparation of invoice, gate-pass, etc.) was convenient and fast at the time of
taking delivery of the Machine tool. From the above figure it is understood that 93 percent
customers have said that the processing was convenient and fast at the time of vehicle
delivery. 2 percent customers said that the processing was not convenient and fast and 5
percent have said no idea.
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14) How would you rate the overall performance of the Praga tools company based on
Service / Repair experience of yours?
Table No.14
Percentage of
15 80 4 1
responses
80
80
70
60
50
40
30
20 15
10 4
1
0
Excellent Good Fair Poor
Customer's response
Fig .No.14
INTERPRETATION:
The above figure represents the respondent’s response regarding the Praga tools
company’s overall performance based on service/repair. From the above graph it is
understood that 15 percent of the respondents are highly satisfied with the workshop’s overall
performance. 80 percent of the respondents are satisfied. 5 percent of the respondents
expressed dissatisfaction with 1 percent of them is highly dissatisfied.
15). was the Service Advisor able to understand & explain your service
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Requirement & needs?
Table No.15
Percentage of response 95 4 1
4% 1%
Yes
No
No idea
95%
Fig .No.15
INTERPRETATION:
The above figure represents the respondent’s response regarding the service advisor’s
ability to understand and explain the service requirements and needs of the tool to the
customers. From the above graph it is understood that 95 percent of the respondents are
satisfied with the service advisor’s ability to understand the problem with the vehicle. 4
percent of the respondents expressed dissatisfaction and 1 percent said that they have no idea
16). How would you rate the Service Advisor’s Knowledge & ability to
76
Table No.16
Percentage of
15 71 7 1 6
responses
80 71
70
60
50
40
30
20 15
7 6
10 1
0
Excellent Good Fair Poor No idea
Customer's response
Fig .No.16
17). were you attend promptly during Repair Order / job card opening?
Table No.17
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STATUS Yes No No idea
Percentage of response 93 2 5
2% 5%
Yes
No
No idea
93%
Fig .No.17
INTERPRETATION
The above figure represents the respondent’s response to know whether the customer
attended to promptly during repair order /job card opening at the Praga tools company. From
the above figure it is understood that 93 percent customers have said that they are attended to
promptly during repair order opening at workshop. 2 percent customers did not attend to
promptly and 5 percent have said no idea.
18). How would you rate the Courtesy of the Service Advisor?
Table No.18
78
idea
Percentage of
19 74 4 0 3
responses
80 74
70
60
50
40
30
19
20
10 4 3
0
0
Excellent Good Fair Poor No idea
Customer's response
Fig .No.18
INTERPRETATION:
The above figure represents the respondent’s response regarding the courtesy of the
service advisor at the Praga tools company. From the above graph it is understood that 19
percent of the respondents are highly satisfied with the courtesy of the service advisor at the
workshop. 74 percent of the respondents are satisfied. 4 percent of the respondents expressed
dissatisfaction. 3 percent said that they have no idea.
19). How would you rate the helpfulness of the Service Advisor?
Table No.19
Percentage 17 75 4 1 3
79
of responses
70
60
50
40
30
17
20
10 4 3
1
0
Excellent Good Fair Poor No idea
Customer's response
Fig .No.19
INTERPRETATION:
The above figure represents the respondent’s response regarding the helpfulness of
the service advisor at the Praga tools company. From the above graph it is understood that 17
percent of the respondents are highly satisfied with the helpfulness of the service advisor at
the workshop. 75 percent of the respondents are satisfied. 5 percent of the respondents
expressed dissatisfaction. 3 percent said that they have no idea.
20). How would you rate the Courtesy extended at this Praga tools company?
Table No.20
80
Percentage
25 70 1 1 3
of responses
70
70
60
50
40
30 25
20
10
1 1 3
0
Excellent Good Fair Poor No idea
Customer's Response
Fig .No.20
INTERPRETATION:
The above figure represents the respondent’s response regarding the courtesy
extended at the Praga tools company. From the above graph it is understood that 25 percent
of the respondents are highly satisfied with the courtesy extended at the workshop. 70 percent
of the respondents are satisfied. 2 percent of the respondents expressed dissatisfaction. 3
percent said that they have no idea.
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21) How would you rate the availability of proper tools & equipment at this?
Table No.21
Percentage
14 82 1 1 2
of responses
90
80
70
60
50
82
40
30
20
10 14
1 1 2
0
Excellent Good Fair Poor No idea
Customer's response
INTERPRETATION:
The above figure represents the respondent’s response regarding the availability of
proper tools and equipment at the Praga tools company. From the above graph it is
understood that 14 percent of the respondents are highly satisfied with the availability of
proper tools and equipment at the workshop. 82 percent of the respondents are satisfied. 2
percent of the respondents expressed dissatisfaction. 2 percent said that they have no idea.
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STATUS V.GOOD GOOD SATISFIED BAD
%OF 10 10 20 60
RESPONSES
70
60
60
50
40
%OF RESPONSES
30
20
20
10 10
10
0
VERY GOOD GOOD SATISFIED BAD
INTERPRETATION:
%OF 10 10 30 50
83
RESPONSES
INTERPRETATION:
The above figure represents respondents responses regarding the Discount offered by
the company .From the above graph its understood that 10% of people are highly
satisfied,10% respondents are feel good and 30% of people are saying satisfied but 50% of
people are feel regarding Discounts offered by company.
24) How do you get the spares support from machines purchased?
% OF 10 40 30 20
RESPONSES
84
INTERPRETATION:
The above figure represents respondent’s responses regarding the spares support of
the company. From the above graph its understood that 10%of people are highly
satisfied,40% respondents are feel good and 30% of people are saying satisfied but 20% of
people are feel bad regarding spares availability of the company.
QUESTIONNAIRE
2) ADDRESS : __________________________________
3) OCCUPATION : __________________________________
5). How long are you dealing with Praga Tools Ltd.?
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a) 0-5 years b)5-10 years c)10-15 years d)15-20 years.
6). what are the influencing factors for dealing with the Praga Tools Ltd.?
10) How would you place us for customer & business response?
12) How do you like to grade the service provided by the servicing men?
14) What do you think of the usefulness of the Machine/Accessories supplied by us?
86
17) Have you heard about Praga tools limited?
(YES/NO)
(YES/NO)
(YES/NO)
If any:
FINDINGS
87
2. Quality is the major influencing factor for the customer in purchasing tools.
4. The customers opinion is that T.V,Radio and Flex boards are suitable Media
5. Most of the customers feel that advertising play a important role for improving
6. After my survey I observed that there are many dealers dealing with PRAGA
8. After my survey I found that most of the customers feel that PRAGA
SUGGESTIONS
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To competitors the present market more promotional strategies are required.
Financial benefits to the customers are too provided in order to retain them.
Company need to reduce the idle time of the both machine and work force.
BIBLIOGRAPHY
TEXT BOOKS
89
1 KOTLER ARMSTRONG PRINCIPALS OF MARKETING
WEBSITES
S.NO SITES
1 www.praga tools.org
2 Marketing@Praga tools.org
3 www.learn marketing.com
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