CHAPTER I Introduction

1.1 General Introduction

Worlds seventh largest country by area and second biggest by population makes India one of the most dynamically growing and still, largely untapped construction equipment industry. The country has witnessed massive investment in the construction industry from both public and private enterprises in recent years. Multibillion dollar investments made in constructing roads, ports, power plants, telecommunication sector, urban infrastructural developments, etc have paved the way for construction equipments demand to grow substantially in recent years. According to our research report Booming Construction Equipment Market in India, the construction equipment industry in India has witnessed consistent double digit CAGR growth over the past few years. The global economic slowdown had its moderate effects on the industry, but it regained growth momentum in FY 2010 and showed positive year-on-year growth. Particularly, the earth moving segment is driving the overall industry with strong demand emanating from government backed infrastructure projects. Over the last 3-4 years, various new entrants made inroad to the Indian construction equipment industry. Some of the biggest names belong to Japan, the US and Korea. Besides, a number of domestic companies are either expanding their domestic capacities or diversifying their product portfolio. With the emergence of new market players and expansion plans underway, the industry is expected to become more competitive and fragmented. However, these new capacities will find their home quite comfortably in the domestic market amid growing mechanization and proposed large infrastructural projects. Our report provides profound research and rational analysis of the Indian constructions equipment industry. It provides information/statistics of all prominent market segments including earth moving, material handling, concrete equipments and road building equipments. Analysis of past, present and upcoming industry trends provide balanced market intelligence on the concerned industry. In addition, we have covered key industry players and their business description to examine industrys competitiveness and growth potentials. In addition, the report has given the industry forecast based on correlation of past drivers, challenges and opportunities for expansion. In this way, the report gives an unbiased market picture that will prove decisive for clients. Construction and mining equipment cover a variety of machinery such as hydraulic excavators, wheel loaders, backhoe loaders, bull dozers, dump trucks, tippers, graders,
2

pavers, asphalt drum / wet mix plants, breakers, vibratory compactors, cranes, forklifts, dozers, off-highway dumpers (20T to 170T), drills, scrapers, motor graders, rope shovels etc. They perform a variety of functions like reparation of ground, excavation, haulage of material, dumping/laying in specified manner, material handling, road construction etc. These equipment are required for both construction and mining activity. India has only a few, mainly medium and large companies in the organized sector who manufacture these. The technology barriers are high, especially with respect to mining equipment and therefore the role of SMEs is restricted to manufacture of components and some sub-assemblies. Domestic production began in 1964 with the setting up of Bharat Earthmovers Ltd. (BEML), a public sector unit of the Ministry of Defence, at Kolar in South India to manufacture dozers, dumpers, graders, scrapers, etc. for defence requirements under licence from LeTorneau Westinghouse, USA and Komatsu, Japan.

1.2 Company Profile

BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 as a Public Sector Undertaking for manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The Company has partially disinvested and presently Government of India owns 54 percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and Employees. BEML Limited, a Miniratna-Category-1, plays a pivotal role and serves Indias core sectors like Defence, Rail, Power, Mining and Infrastructure. The Company started with a modest turnover of ` 5 Cr during 1965 and today, thanks to its diverse business portfolio, the company has been able to achieve a turnover of more than `3,500 Cr. Its three major Business verticals viz., Mining & Construction, Defence and Rail & Metro are serviced by its nine manufacturing units located at Bangalore, Kolar Gold Fields (KGF), Mysore, Palakkad and Subsidiary - Vignyan Industries Ltd, in Chikmagalur District. BEMLs products are sold and serviced through its large Marketing Network spread all over the Country. BEMLs products are exported to more than 56 countries. As part of companys globalization strategy, the company has expanded its global reach by opening local company at Indonesia and Brazil recently in addition to Malaysia and China offices.

The company operates under three major Business verticals - viz. Mining & Construction, Defence and Rail & Metro. Each of the above Business is headed by a Director who acts as CEO of the Business and reports to the Chairman & Managing Director of the company. In addition to the above, Technology Division of the company provides end-to-end technology solutions in Auto, Aero, Defence and Rail & Metro related areas. Trading Division deals in non-company products. BEML manufactures and supplies Defence Ground Support Equipment such as Tatra based High Mobility Trucks, Recovery Vehicles, Bridge Systems, Vehicles for Missile Projects, Tank Transportation Trailers, Milrail Wagons, Mine Ploughs, Crash Fire Tenders, Snow Cutters, Aircraft Towing tractors, Aircraft Weapon Loading Trolley. The company also plans to take up overhaul and up gradation of Battle Tanks with a view to assemble and roll out the products. Under Mining and Construction Business, the company manufactures and supplies Mining & Construction equipment like Bull Dozers, Excavators, Dumpers, Shovels, Loaders and Motor Graders to various user segments and under Rail & Metro Business, manufactures and supplies Rail Coaches, Metro Cars, AC EMUs, OHE Cars, Steel and Aluminium Wagons to the rail sector. The company has a dedicated R&D infrastructure and team in line with consistent policy of the company to meet the technological demands through in-house R&D and strategic technical tie-ups with global players. BEML operates on three major business verticals for associated equipment manufacturing:

Mining & Construction Defence Rail & Metro

In addition to the above there are three Strategic Business Units (SBUs):

Technology Division for providing end-to-end engineering solutions Trading Division for dealing in non-company products International Business Division for export activities

The company has 9 manufacturing units spread over the following locations:

Kolar Gold Fields (KGF) Complex (around 100 Km from Bangalore)

o o o o

Earth Moving Division Rail Coach Unit II Heavy Fabrication Unit Hydraulic & Powerline Division
4

Mysore Complex (around 130 Km from Bangalore)

o o

Truck Division Engine Division

Bangalore Complex - Rail & Metro Division Palakkad Complex Vignyan Industries, a subsidiary located at Tarikere (around 300 km from Bangalore) Steel Castings

BEML's nationwide network of sales offices enables buyers with ready access to its wide range of products. Also, the full-fledged service centres and parts depots offer total equipment care, maintenance contracts and rehabilitation services. The company has been registering consistent growth in sales and profits and has made a turnover of ` 3,558 Cr in 2009-10 registering a growth of 18% over the previous year with a Profit Before Tax of ` 320 Cr and has orders on hand of over `5,000 Cr as of end March 2010. The Company has drawn up VISION 2013 with an ambitious growth rate of 12% CAGR for crossing `5,000 Cr turnovers With this emerging prospects, BEML has plans to cross ` 5,000 Cr in the next 2 years and is poised to achieve ` 10,000 Cr mark by 2016-17 and the company is gearing up with necessary infrastructure for achieving the same.

Service Network
BEML's nation-wide after-sales service network includes

4 Zonal Offices 10 Regional Offices 16 District Offices 15 Dealers and the number is growing to cover countrywide for the smaller / construction equipment sector, exclusively.

5 Service Centres 11 Activity Centres

Each office in the vast network, is headed by a senior manager for product support at pit-head / on-site, for Erection & Commissioning, Maintenance, Trouble-shooting, Condition Based Monitoring (CBM), Training, Total Support for Mid-life Overhauling & Major Rehabilitation of Equipment for better equipment availability & productivity.
5

BEML's after-sales service is available for the life of the equipment. The Product support packages include Annual Maintenance Contracts (AMC), Annual Service Contracts Maintenance And Repair Contracts (MARC) and Guaranteed Availability & Spare Consumption Contract BEML has established a full-fledged Service Training Centre at KGF and Mysore complexes for offering variety of programs, scheduled round-the-year

1.2.1 Vision & Mission of the Company

Vision To become a market leader, as a diversified company supplying products and services to Mining & Construction, Railway & Metro and Defence Services and emerge as an International Player. Mission 1. Improve competitiveness through organizational transformation and collaboration / strategic alliances / joint ventures in technology. 2. Grow profitably by aggressively pursuing opportunities in national and international markets. 3. Attract and build people in a rewarding and inspiring environment by fostering creativity and innovation.

1.2.2 Objectives of the Company

1. To maintain a dominant position in design, development, manufacture and marketing of Defence, Earthmoving & Construction and Rail & Metro equipment. 2. To diversify and grow. 3. To provide total engineering solutions to its customers. 4. To internationalise operations by enhancing exports. 5. To improve profitability. 6. To maintain State-of-the-Art technology for all products. 7. Re-orientation of the business operations to match present scenario. 8. Continuous building of skills and competencies to bring about Executive Effectiveness for Management Succession.
6

1.2.3 Marketing and Sales

BEML Limited has nationwide marketing network for sales and service of construction equipment spread across 22 States, the National Capital Region and 2 Union Territories. Apart from the domestic market penetration, BEMLs machines reach over 52 countries worldwide covering Asia, Africa, Europe, Latin America and the Middle East. With the plans to increase global presence, BEML has set up overseas office and entering strategic alliances. Shoring up its revenues in the International Business is an immediate priority to BEML. It has established its international offices in China and warehouse at Malaysia. BEML has already established marketing base in Brazil, which will be followed by an assembly plant.

BEML offers application engineering to its customers, which includes preparation of pre-feasibility reports, equipment selection studies, total fleet optimization solutions and customization of equipment. Recommendation-for-User-Profit (RUP) studies enable customers to improve machine productivity and reduce operating costs.

1.2.4 Mining and Construction equipments

CRAWLER DOZERS MODELS: BD475 BD155X BD65-1 BD355 BD230 BD65 BD355X BD80 BD50 BD155 BD65X BD31

WHEEL DOZERS MODELS: BD46W BD30W-1 BD14W

EXCAVATORS

MODELS: BE1600 BE300LC BE200 BE1000-1 BE220 BE71 BE1000E BE220LC BE700 BE220X

DUMP TRUCKS MODELS: BH100 BH50M BH90 BH40 BH85-1 BH35-2 BH70 BH35 BH60

LOADERS MODELS: BL200-1 BL656-1 BL636-1

BACKHOE LOADERS MODELS: BL9H(4X4) BL9H

SPRINKLERS MODELS: WS28 WS28-2 WS70

GRADERS MODELS: BG825 BG605A BG605 BG605X

MODELS: MINING BL10C BL15 MINE LOCOMOTIVES WINDERS WINCHES GRANBY CARS

TYRE HANDLER MODELS: BL14TH

C-CRANE MODELS: CM20H

PIPE LAYERS MODELS: BP100 BP70 BP41

WALKING DRAGLINE MODELS: W2000

Table 1

1.2.5 Awards and Achievements

CMD received the 'SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management - Medium PSE CategoryD' for the year 2006-07

CMD received Raksha Mantri's Award for 'BEST DEFENCE PSU' for the year 2007-08 CMD received the 'BEST PSU AWARD' instituted by India's leading B School, Indian Institute of Planning & Management held at Bangalore on 25th March 2009

Southern Region of EEPC India awarded BEML with 'Silver Shield' for Star Performer as a Large Enterprise for its outstanding contribution to Engineering Export held at Trivandrum on 11th February 2009

CMD received the 'Raksha Mantri's Award for Excellence' for 'Best Performance in Exports' held at New Delhi on 7th November 2008 Conferred Star Performer Award by Engineering Export Promotion Council, Southern Region on 24th November 2007 Award for Excellence in Technology and Innovation from Confederation of Indian Industries (CII) Rated AAA by ICRA in January 2007 Received 'Golden Peacock Award for Innovation Management' from Institute of Directors on 14th January 2007 Ranked 4th Best Wealth Creator among 21 Best Wealth Creators of India and the 1st among PSUs (US$ 1 in 2002 has appreciated to US$ 62.64 in 2007) by Dalal Street Magazine

Conferred Mini Ratna Category-1 Status by Ministry of Defence, Govt. of India during August 2006 Received Golden Export Award from Government of Karnataka, India during August 2006 Received Enterprise Excellence Award from Indian Institute of Industrial Engineers during May 2006 Received Excellent MoU rating in 2005-06 Award for Outstanding Export Performance from Engineering Export Promotion Council (EEPC) during February 2005 Award for The Largest and Most Profitable Construction Equipment Company 1st Rank from Construction World - NICMAR 2007

10

Awarded UDYOG RATAN AWARD (Gold Trophy) by Institute of Economic Studies, New Delhi, during October 2004 Received Niryat Shree Gold Trophy from Federation of Indian Export Organisations for its outstanding export performance in Export House/Non SSI category for the financial year 2000-01

National Award for Import Substitution for Crawler Mounted Shovels (2 to 2.5 bucket Cu., M. Capacity)

1.3 Dealer Profile Facilities Infra Projects India Pvt Ltd, Calicut is dealer who is responsible for the sales and service of the BEML machines in Malabar region. They are running many quarries in different parts of Kerala and they have good knowledge about the types of the different machines which are useful in earth moving industries. The main office is situated at Kovoor, Calicut. They have good technical staffs with a bunch of experience and performing well at the field.

The company has a strong culture of excellence in everything that it does. This has helped it earn tremendous loyalty from Customers, resulting in a large percentage of its sale coming through references from the existing Customers.

11

1.4 Objectives of the Study

1.4.1 Primary Objectives

To Study the customer satisfaction of BEML BL9H (4X4) Backhoe loader.

1.4.2 Secondary Objectives

To study the service satisfaction. To study the Spare parts availability. To collect Feedbacks from customers.

1.5 Research Methodology

Research in common place refers to a search for knowledge. Research is defined as systematic and scientific search for pertinent information on specific topic or area of study. Methodology is a plan of action for a research project and explains in detail how data are collected analyzed and presented, so that they will provide meaning information. 1.5.1 Research design A Research design is purely and simply the framework or plan for the guides the collection and analysis of data. It is the overall operational pattern or framework of the project that stipulated the information to be collected, from which source and what procedures. A Research design might be described as a series of advance decision that taken together from a specific master plan or the model for the conduct of the investigation. Descriptive research is used in this project.

1.5.2 Descriptive research

This type of research design is undertaken in many circumstances. When the researcher is interested in knowing the characteristics of certain groups such as age, sex, education level, Occupation or income etc. The Objective of such study is to answer the
12

Who, What, When, Where, and How of the subject under investigation, so in this project study comes under descriptive research design.

1.5.3 Research instrument used

The questionnaire was found to be the most suitable type of research instrument to collect data. It is important tool of the research; it is used to generate the raw data on which findings were based.

1.5.4 Questionnaire construction

A questionnaire is an assembly of carefully formulated questions, designed to collect facts and options from the respondents. Its an important tool of the research; it is used to generate the raw data on which findings were based.

The aim of the designing questionnaire was

To obtain accurate data To make interview as interesting and stimulating To be easily analysis To facilitate efficient administration of information.

1.5.5 Source and collection of data

The task of data collection begins after research problems have been defined and research design chalked out. Data is the foundation for all marketing research. The researchers can obtain data form. Primary data Primary data are those, which are collected afresh and for the first time, and thus happens to be original in character for this study, primary data involves questionnaires.
13

Secondary data Profile of the company has been used for information of the study.

1.6 Sampling plan

Due to cost and time involved in collecting the data from all the respondents, it becomes a compulsion to choose representation. Sampling plan explains the Sampling unit Sampling size Sampling method Area of sampling

1.6.1 Sampling Unit: The sampling unit is who is to be surveyed? That is sampling unit is who are all the respondent is called sampling unit. The sampling units for this study are customers of Malabar region. 1.6.2 Sampling Size: The sample size for this study is 50. 1.6.3 Sampling Method: Different types of sampling methods are available. In this study the convenient sampling was selected for this research. 1.6.4 Area Of Sampling: The area of sampling was taken in Malabar region

14

1.6.5 Statistical tools

To arrange and interpret the collected data the following statistical tools were used. 1. Percentage Method. 2. Chi- square Analysis.

Percentage method:

The percentage method was extensively used for findings various details. It is used for making comparison between two or more series of data. It can be generally calculated.

No. of respondents favourable Percentage of Respondents = Total no. of respondents x 100

Chi square analysis

Chi- square analysis in statistics to text the goodness of fit to -verify the distribution of observed data with assumed theoretical distribution

The formula for computing Chi Square (x

x2 = {(O-E)^2/E

15

1.7 Project Period

The period Study was 21 days.

1.8 Limitations of the Study

As the No. Of respondents are only 50 , it may not be regarded as full proof The responses given by the customers may not be absolutely true. The project duration is limited to only 21 days which was not enough for project completion.

16

CHAPTER II Theoretical Review

17

2.1 Customer satisfaction

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass consumer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customer, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

2.2 Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Consumer satisfaction is an ambiguous and 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 options the customer may have and other products against which the customer can compare the organization's products. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the measurement of customer satisfaction with
18

a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. 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 and in term of their perception and expectation of the performance of the organization being measured.

Customer satisfaction in 7 steps

By Adrian Thompson February 11th 2002

It's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved.

Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer.

If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project.
19

My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale.

Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. We all know how annoying it is to wait days for a

response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologized repeatedly, which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service.

Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone.

This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's
20

vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous. Have a Clearly-Defined Customer Service Policy This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem. Should they contact different people for billing and technical enquiries. If they're not satisfied with any aspect of your customer service, who should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful . Attention to Detail (also known as 'The Little Niceties') Have you ever received a Happy Birthday email or card from a company you were a client. You ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch. These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.

Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However, achieving this supreme level

of understanding with your clients will do wonders for your working relationship Take this as an example: you're working on the front-end for your client's exciting new ecommerce Endeavour. You have all the images, originals and files backed up on your desktop computer
21

and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. A note accompanies it which reads: Honor Your Promises It's possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss.

22

CHAPTER III Data Analysis and Interpretation

23

3.1 Percentage Method Analysis

Table showing how many hours Customers use Backhoe loaders daily Options Less than 10 hours 10-15 hours No. Of Respondents 25 25
Table 2

Percentage of Response 50 50

Chart showing how many hours Customers use Backhoe loaders daily
30 25 25 20 15 10 5 0 Total Less than 10 hours 10-15 hours 25

Figure 1

Interpretation: Customer response is 100% to this question. 50% of the Customer response is Less than 10 Hours. 50% of the Customer response is between 10 15 hours.

24

Table showing Customers expectation in terms of Performance and Quality

Option

No. of Respondents

Percentage

All the time Most of the time Some of the time

10 27 5

20 54 10

Just now and Then

8
Table 3

16

Chart showing Customers expectation in terms of Performance and Quality

30 25 20 15 10 10

27

All Of the time Most of the time Some of the time 8 5 Just now and then

5 0 Total Figure 2

Interpretation: Customer response is 100% to this question. 20% of the Customer response is All of the time. 54% of the Customer response is Most of the time. 10% of the Customer response is some of the time. 16% of the Customer response is Just now and Then.
25

Table showing Customers attractiveness towards BEML BL9H (4X4)

Option

No. of Respondents

Percentage

Price Performance Product quality All of the above No response

28 10 2 8 2
Table 4

56 20 4 16 4

Chart showing Customers attractiveness towards BEML BL9H (4X4)

30 28

25

20

Price Performance

15 10 10 8

Product quality All of the above No response

5 2 0 Total 2

Figure 3

Interpretation: Customer response is 96% to this question. 56% of the Customer response is Price. 20% of the Customer response is Performance. 4% of the Customer response is Product quality. 16% of the Customer response is All of the above. 4% of the customer has not responded to this question.
26

Table showing Customer service associate cooperativeness Option No. Of Respondents Percentage of response

Yes No

38 12
Table 5

76 24

Chart showing Customer service associate cooperativeness

40 35 30 25 20 15 10 5 0

38

Yes No 12

Total Figure 4

Interpretation: Customer response is 100% to this question. 76% of the Customer response is Yes. 24% of the Customer response is No.

27

Table showing Customers satisfaction about the performance of the machine

Option

No. Of Respondents

Percentage of response

Yes No

38 12
Table 6

76 24

Chart showing Customers satisfaction about the performance of the machine

40 35 30 25 20 15 10 5 0 Total Figure 5 12 Yes No 38

Interpretation:

Customer response is 100% to this question. 76% of the Customer response is Yes. 24% of the Customer response is No.

28

Table showing Customers preference for another BEML BL9H (4X4)

Option

No. Of Respondents

Percentage of response

90-100 % 80-90 % 50-80 % Less than 50 No Response

18 15 5 10 2
Table 7

36 30 10 20 4

Chart showing Customers preference for another BEML BL9H (4X4)

20 18 16 14 12 10 8 6 4 2 0 Total Figure 6 5 2 10 15 90 - 100 % 80 - 90 % 50 - 80% Less than 50 No response 18

Interpretation:

Customer response is 96% to this question. 36% of the Customer response is 90-100%. 30% of the Customer response is 80-90%. 10% of the Customer response is 50-80%. 20% of the Customer response is Less than 50%.

4% of the customer has not responded to this question.

29

Table showing Customers suggestion of BEML BL9H (4X4) to others

Option

No. Of Respondents

Percentage of response

Yes No

37 13
Table 8

74 26

Chart showing Customers suggestion of BEML BL9H (4X4) to others

Figure 7 40 35 30 25 20 15 10 5 0 Total 13 Yes No 37

Interpretation:

Customer response is 100% to this question. 74% of the Customer response is Yes. 26% of the Customer response is No.

30

Table showing average Fuel consumption of machine

Option

No. Of Respondents

Percentage of response

Less than 5 litres 5 -7 litres More than 7 litres

3 42 5
Table 9

6 84 10

Chart showing average Fuel consumption of machine

45 40 35 30 25 20 15 10 5 0 Total Figure 8 3 5 Less than 5 Litres 5-7 Litres More than 7 Litres 42

Interpretation:

Customer response is 100% to this question. 6% of th Customer response is Below 5 Litres 84% of the Customer response is 5-7 Litres. 10% of the Customer response is More than 7 Litres.

31

Table showing the Spare parts availability Option No. Of Respondents Percentage of response

Good Moderate Bad

28 20 2
Table 10

56 40 4

Chart showing the Spare parts availability

30 25 20 20 Good 15 10 5 0 Total Figure 9 Moderate Bad 28

Interpretation:

Customer response is 100% to this question. 56% of the Customer response is Good. 40% of the Customer response is Not good. 4% of the customer has not responded to this question.

32

Table showing Place of application of your Machine

Option

No. Of Respondents

Percentage of response

Soil Quarry Backhoe Others

12 2 13 23
Table 11

24 4 26 46

Chart showing Place of application of your Machine

25 23

20 Soil Quarry Backhoe Others 5 2 0 Total

15 12 10

13

Figure 10

Interpretation: Customer response is 100% to this question. 24% of the Customer response is in Soil. 4% of the Customer response is in Quarry. 26% of the Customer response is in Backhoe. 46% of the Customer response is in Other places.

33

Table showing Nature of application of the Machine

Option

No. Of Respondents

Percentage of response

Loading Levelling Dozing Others

10 5 2 33
Table 12

20 10 4 66

Chart showing Nature of application of the Machine

35 30 25 20 15 10 10 5 5 0 Total Figure 11 2 Loading Levelling Dozing Others 33

Interpretation: Customer response is 100% to this question. 20% of the Customer response is Loading Purpose. 10% of the Customer response is Levelling Purpose. 4% of the Customer response is Dozing Purpose. 66% of the Customer response is Other Purposes.
34

Table showing Customers response to usage of any other machines of BEML (Including Excavators)

Option

No. Of Respondents

Percentage of response

Yes

10

No

43

86

No Response

2
Table 13

Chart showing Customers response to usage of any other machines of BEML (Including Excavators)
50 45 40 35 30 25 20 15 10 5 0 Total Figure 12 5 2 Yes No No Response 43

Interpretation: Customer response is 96% to this question. 20% of the Customer response is Yes. 86% of the Customer response is No. 4% of the customer has not responded to this question.

35

Table showing Customers response to the rating on a scale of 1 to 5 where 1 represents Extremely dissatisfied and 5 represent Option Extremely satisfied, in regards to price Percentage of response

No. Of Respondents

1 2 3 4 5

4 9 25 10 2
Table 14

8 18 50 20 4

Chart showing Customers response to the rating on a scale of 1 to 5 where 1 represents Extremely dissatisfied and 5 represent Extremely satisfied, in regards to price
30 25 25 20 15 10 5 0 Total Figure 13 4 2 9 10 1 2 3 4 5

Interpretation: 8% of Customer response is Rank 1. 18% of Customer response is Rank 2. 50% of Customer response is Rank 3. 20% of Customer response is Rank 4. 4% of Customer response is Rank 5.

36

Table showing Customers comparison of BEML with competitors Option No. Of Respondents Percentage of response

Telcon Komatsu Lebrero Terex JCB Volvo No Response

14 7 3 3 16 2 5
Table 15

28 14 6 6 32 4 10

Chart showing Customers comparison of BEML with competitors

18 16 16 14 14 12 10 8 6 4 2 0 Total Figure 14 3 3 2 7 5 Telcon Komatsu Lebrero Terex JCB Volvo No Response

Interpretation: 28% of Customer response is Telcon. 14% of Customer response is Komatsu. 6% of Customer response is Lebrero. 6% of Customer response is Terex. 32% of Customer response is JCB. 4% of Customer response is Volvo. 10% of Customers doesnt respond.
37

Table showing Customers response to the rating on a scale of 1 to 5 where 1 represents Extremely dissatisfied and 5 represent Extremely satisfied, in regards to overall satisfaction

Option

No. Of Respondents

Percentage of response

1 2 3 4 5

4 9 25 10 2
Table 16

8 18 50 20 4

Chart showing Customers response to the rating on a scale of 1 to 5 where 1 represents Extremely dissatisfied and 5 represent Extremely satisfied, in regards to overall satisfaction
30 25 25 20 15 10 5 0 Total Figure 15 4 2 9 10 1 2 3 4 5

Interpretation: 8% of Customer response is Rank 1. 18% of Customer response is Rank 2. 50% of Customer response is Rank 3. 20% of Customer response is Rank 4. 4% of Customer response is Rank 5

38

3.2 Chi-Square test Analysis

Table showing Customer Satisfaction * Customer service of BEML BL9H(4X4) Cross tabulation Customer service of BEML BL9H(4X4) Yes Customer Satisfaction of BEML BL9H(4X4) 4 extremely dissatisfied No 0 4 Total

9 dissatisfied

25 moderate

25

0 satisfied

10

10

0 extremely satisfied

38 Total

12

50

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 50.000a 55.108 27.188 50
Table 17

df 4 4 1

Asymp. Sig. (2-sided) .000 .000 .000

39

H0: There is no relationship between over all Satisfaction & Customer service of BEML BL9H (4X4). H1: There is a relationship between over all Satisfaction & Customer service of BEML BL9H (4X4).

Interpretation: The chi-square test was found to be significant with a value of 0, degree of freedom 4 and p< 0.05.Hence we can say that the null hypothesis H0 is rejected and H1 is accepted. It shows that there is a relationship between over all Satisfaction & Customer service of BEML BL9H (4X4).

40

3.3 One sample T-test

Table showing T test results One-Sample Statistics N Customer rating about overall satisfaction 50 Mean 2.94 Std. Deviation .935 Std. Error Mean .132

One-Sample Test Test Value = 3 95% Confidence Interval of the Difference Lower -.33 Upper .21

t Customer rating about overall satisfaction -.454

dof 49

Sig. (2tailed) .652

Table 18

Mean Difference -.060

Null Hypothesis: There is no statistical difference between sample mean and population mean. Alternative Hypothesis: There is statistical difference between sample mean and population mean. Calculation for T Test T test value= (Maximum score * No. of questionnaire considered) + (Minimum score* No. Of questionnaire considered) /2

= =

(5*1) + (1*1)/2 (5+1)/2 = 3

41

Interpretation: From the aove One sample statitics table, the researcher has found out that the mean of the sample is 2.94 and the T- test value is 3. As the mean is less than the T-test value , the opinion of the sample regarding the statement, Customer rating about overall satisfaction lies between disatisfied and neutral with more shift towards neutral. From one sample T test table, the researcher has found out that the value of p is 0.652 at 5 % level of significance and degree of freedom is 49. As p > 0.05, we accept null hypothesis which means, there is no statistical difference between sample mean and population mean. So the sample mean can be taken as the population mean.

42

CHAPTER VI Findings, Suggestions and Conclusion

43

4.1 Findings from the data

44% of the Customers satisfied with the Quality and Performance of the machine 56% of the attracted towards the Price of the machine. Majority of the Customers agree with Customer service cooperativeness of the BEML. Some of the Customers are showing 90-100% of preference for another BEML machine. Majority of the Customers are ready to suggest the machine for others. Most of the Customers are satisfied with the 5-7 Litres fuel consumption of the machine. 56% of the Customers are satisfied with the spare parts availabilities of the machine. 50% of the Customers show moderate satisfaction level with the machine and 20% of the Customers are extremely satisfied with the machine. As the Chi-Square test shows a relationship between Customer Service and the overall Customer Satisfaction, the Customer service should be improved and maintained in order to achieve more Customer Satisfaction. The result of One sample T-test shows the sample mean can be taken as population mean, i.e. overall satisfaction of the sample can be taken as a representative of satisfaction of population. The Study also shown that Customer rating about overall satisfaction lies between disatisfied and neutral with more shift towards neutral.

4.2 Suggestions
Quality and Performance of the machine is to be maintained.

As customers are more sensitive towards price, pay attention to this section more.

Spare parts availability is to be improved.

As there exists a positive relation between customer service and overall satisfaction BEML should concentrate on improving Customer service to foster overall satisfaction.
44

As the overall Customer Satisfaction is lying between dissatisfaction and neutral range BEML should implement strategies to boost overall satisfaction to a higher range.

Timely Service and spare parts availability need to be improved.

4.3 Conclusion
After the Research has done I came to know that most of the people related to Construction and Earth moving Industry are very well aware about the brand.

Majority of the Customers are well satisfied with Price, Quality and Performance of the machine

45

Appendices

Sample questionnaire
Dear Sir/Madam. I am Mr.Ajmal Hussain Studying MBA 2nd Semester at Farook Institute of Management Studies, as part of my academic requirement I am doing this survey for my minor Project. Please Co-operate & I assure that collected information will be confidential.

Name* Model Used*

: :

Nature of application* : Application of Machine*:

1) How many hours do you use your Backhoe loaders daily? o o o o 10 15 Hours 15 20 Hours 20 24 Hours Less than 10 Hours

2) Do you think BEML BL9H (4X4) meets your expectation in terms of Performance and Quality? o All the time o Most of the time o Some of the time o Just now then

3) What attract you more to BEML BL9H (4X4) from its competitor? o Price o Performance o Quality o All the above
46

4) Do you find the customer service associate co-operative? o Yes o No

5) Are you satisfied with the performance of the machine? o Yes o No o If No, then specify_______________________________________________

6) If you want to purchase another Backhoe Loader, How much you will allot for BEML BL9H (4X4)? o 90 100 % o 80 90 % o 50 80 % o Less than 50%

7) Would you suggest BEML BL9H (4X4) to others? o Yes o No

8) What is average Fuel consumption of your machine? o Less than 5 litres o 5 -7 litres o More than 7 litres

9) Are you satisfied with the Spare parts availability? o Good o Moderate o Bad

10) Place of application of your Machine? o Soil o Quarry o Backhoe o Others 11) Nature of application of your Machine? o Loading o Levelling o Dozing o Others
47

12) Are you using any other machines of BEML (Including Excavators)? o Yes o No o If Yes, Please specify model ______________________________________________ 13) On a scale 1 to 5 where 1 represents Extremely dissatisfied and 5 represents Extremely satisfied, how would you rate your satisfaction with BEML in regards to price? o 1 o 2 o 3 o 4 o 5 14) Which are the competitors Machines you compare with BEML? o Telcon o Komatsu o Lebrero o Terex o JCB o Volvo 15) On a scale 1 to 5 where 1 represents Extremely dissatisfied and 5 represents Extremely satisfied, how would you rate your level of overall satisfaction with BEML? o 1 o 2 o 3 o 4 o 5

16) Your valuable Feedback for product improvement?

48

Bibliography

en.wikipedia.org

www.constructionupdate.com

www.offhighway.co.uk

www.beml.co.in

49