Project Report

on
Market development and Customer Perception towards Banco
Products

Submitted By:
Jerrin Rachel
MBA, III Sem.

Institute of Technology and Management Universe, Vadodara.

2

INDEX
SR.NO. TOPICS PAGE NO.
* ACKNOWLEDGEMENT 3
* LIST OF TABLES 4
1. COMPANY PROFILE 5
2. INDUSTRY PROFILE 16
3. RESEARCH OBJECTIVE AND SCOPE OF
STUDY
33
4. RESEARCH METHODOLOGY 34
5. DATA COLLECTION AND DATA ANALYSIS 38
6. CONCLUSION OF THE STUDY 62
8.
BIBLIOGRAPHY

64


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ACKNOWLEDGEMENT
I would like to take this opportunity to thank Banco Products Ltd Vadodara, for providing me
this highly coveted opportunity to undertake my Internship Project in the company.
I owe my profound gratitude to Mr. HEMANT DABHI (H.R manager Banco Products India
Ltd) for providing me the opportunity to undertake this study in this company I extend my thanks
to concern employees of marketing departments of BANCO PRODUCTS for providing me
necessary guidance and information as & when required during the Training.

I express my sincere gratitude to Mr. DHARMESH SHAH SIR for his continues guidance &
support while preparing the report.
I would like to thank Mr . RAHUL AGRAWAL -External guide for constantly supporting and
guiding me throughout the internship period. I am also thankful to the other staff members who
have been co-operative & cordial to their utmost level.
I extend my deep gratitude to my parents and all my friends for their continuous inspiration,
support, motivation and helping me to achieve my task.




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Table of Contents
1. Company Profile
2. Industry Profile
3. Review of Literature
4. Research Objective and Scope of study
5. Research Methodology
5.1. Methods, tools and techniques employed for data collection.
5.2. Time, place and materials of the survey
5.3. Research Design
5.4. Sampling Procedure
6. Data Collection and Preparation
7. Data Analysis
8. Findings, Conclusions & Suggestions
9. Bibliography



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COMPANY PROFILE

BANCO PRODUCTS(I) LTD,VADODARA PLANT


Banco Products India Ltd is a supplier of high quality engine cooling components and
engine sealing gaskets to the automotive industry for over four decades. The company
offers a complete line of radiators, intercoolers, oil-coolers and all types of engine
gaskets. BANCO supplies radiators; intercoolers and engine gaskets that are designed to
meet or even exceed original equipment (OE) engineering specifications.

Banco Products India Ltd was incorporated in March 16, 1961. The company produces
gaskets and radiators that have applications in automobiles, oil engines, compressors and
locomotives.

The company has four modern manufacturing plants based at Baroda (Vadodara),
Mumbai, with state-of-the-art facilities for Production, Design & Development and
Quality Assurance.

The company offers over 12,000 varieties of gaskets in multi-layered steel, graphite, fiber
steel and copper designs for automotive, agricultural vehicles, and diesel commercial
vehicles; radiators for cars and pickups, industrial radiators, air-to-air intercoolers,
custom-designed intercoolers, intercoolers cores for various commercial vehicles and off-
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road industrial applications; and compressed jointing sheets using non asbestos raw
materials which are environmentally friendly.

The company is an original equipment supplier to Indian automobile majors including
Telco, Ashok Leyland, Mahindra & Mahindra, Premier Auto, Hindustan Motors and
Maruti Udyog.

It exports its products to Australia, Germany, Singapore and the UK. During the year
1991-1992, the company increased installed capacity of Radiators from 80000 Nos to
130000 Nos.

During the year 2000-2001, the company developed of Non Asbestos Jointing sheets as
helped auto industry to contribute towards pollution free environment.

The company got the rare distinction as suppliers to foreign OEMs in the field of
radiators and in the same year, the company developed considerable manufacture of
multiplayer steel gaskets and rubber-coated steel.

During the year 2001-2002, the company successfully developed Aluminium Radiator
and commenced commercial production. During the year, the company increased the
installed capacity of Radiators from 275,000 Nos to 375,000 Nos.

During the year 2002-2003, the company installed number of high precision production
equipment for higher and better production. During the year 2003-2004, the company's
aluminium radiator division produced various aluminium heat exchange products such as
oil- coolers, charged air coolers etc.

The company announced that it quality system successfully certified as confirming to TS
16949 by UL, USA. During the year 2004-2005, the company added more names in the
list of foreign customer.

During the year 2005-2006, the company successfully commissioned the 100 % Export
Oriented Units (EOU) and in the same year, the company successfully obtained renewal
of TS-16949 certification.

During the year 2006-2007, the company increased installed capacity of Radiators from
375,000 Nos to 762,000 Nos. During the year 2007-2008, the company successfully
commissioned Assembly Plant for Radiator at Jamshedpur and in the same year, it
successfully implementing Clean Development Mechanism Project, which mitigates
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Greenhouse Gas Emission and may earn Carbon Credits for future. During the year, the
company increased installed capacity of Radiators from 762,000 Nos to 792,000 Nos.

MISSION
Our mission is to provide our customers quality products at the best value along with
service and professionalism that is a step above our customer's expectations.

VALUES
The guiding force and core values, at Banco, for the purpose of governance of its
business, are established, since its inception on principles of Integrity, Responsibility,
Trust and Co-operative efforts. We believe that integrity means honest and accurate
reporting of the performance, both internally and externally.

It is creating an environment which supports/demands proper business conduct.
Similarly, we also believe that the policy-making area and management area of the
Company handed to us in trust by various stakeholders and therefore we are the
Trustees of the stakeholders.

Protecting and furthering interest of the various stakeholders of the Company, is
therefore, our responsibility. At Banco, we also recognized the fact that the society is an
important stakeholder in this enterprise and therefore, our Trusteeship also makes us
responsible to practice good corporate citizenship.








COMPANY HISTORY
Banco Products (India) Ltd. was founded in 1961, with the purpose to design and
manufacture Radiators and Gaskets as an import substitute for the Indian OEM Industry,
Railways and Defense Sector.
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The company manufacturing units have received ISO/TS 16949:2002 certifications for its
quality management


By 80s we were supplying to most of the major OEMs in India with most diversified
customer base. In 1987, Banco Products became a public company, listed on the Indian
Stock Exchanges. The company owns for manufacturing facilities located at
Vadodara, Gujarat.


In the 1990s we began our export sales forays into international markets especially to
Europe, and got ISO-9002 Certified. In the early part of this decade, we got the ISO/TS
16949 Certification and were recognized as a export house by the Ministry of Commerce
and Trade.


In the early 2000, Banco Products setup a 100% Export Orientated factory, which got the
company recognized as Star Export House by the Ministry of Commerce and Trade. The
company offers a range of radiators, intercoolers, oil-coolers and all types of engine
gaskets.


Since 2008, our company in house R & D center has received recognition by the
Department of Science, Government of India.

PRODUCTS
Gasket- The company manufactures a complete sealing solutions for applications in area
of Automotive, Industrial and Agriculture.

The company manufactures and exports a whole range of automotive gaskets for diesel
engines, agriculture diesel engines, cylinder head gaskets including asbestos steel
composite cylinder head gasket, copper cylinder head gasket, edge-moulded cylinder
head gasket, gasket head kit, steel composite cylinder head gasket, graphite composite
cylinder head gasket and multi layered steel cylinder head gasket.

Radiator- the company manufactures and exports radiators ranging from high
performance radiator, auto radiator, car radiator, industrial radiators, intercoolers ranging
from air to water intercooler, air to air intercooler, custom designed inter cooler, cabin
heater and replacement cores for various automotive, industrial and agricultural
applications.

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Banco also manufactures oil coolers in both brazed aluminum and copper-brass designs
for automotive and off road applications.

Compressed Fiber Jointing Sheets (CFJS) - Banco manufactures high quality compressed
jointing sheets using non asbestos raw materials. Banco Products exports all varieties of
compressed fiber jointing sheets which cover a complete range of Automotive and
Industrial applications worldwide.

OUTLOOK
Banco Products (India) has forayed into the U.S market by signing contract with three US-based
auto wholesalers. With this the company expects sale of $1.5 million worth from the U.S market
in FY09.
Code of Conduct
This code of conduct (the Code) for members of Board of Directors and senior
management helps maintaining the standards of business conduct at Banco (the
Company) and ensures compliance with legal requirements in terms of Listing
Agreement executed by the Company with the Bombay Stock Exchange, Mumbai. The
purpose of this code is to promote ethical conduct by setting tone at the top and deter
wrongdoing. The matters covered in this code are of at most importance to the Company
and all its stakeholders.
Applicability
This code applies to all the members of the Board of Directors and also to the senior
management team consisting of all the Unit/Departmental Chief and Corporate Level
HODs.
Good Corporate Citizenship
In business dealings for the Companys business each one is expected to follow a good
corporate citizenship, which embraces the following;


Relationship With Suppliers/Customers/Others
The Company expects that all the Directors, Senior Management Team Members and its
other employees, shall ensure that in their dealings with suppliers, customers and others,
the Companys interests are always kept at paramount level and no compromises are
made therefore. Accepting gifts/presents/in any form, from suppliers, customers etc, will
10

be viewed as a serious breach of the code since the Company believes that such an action
may lead to one compromising the interest of the Company.
Legal Compliance
At Banco, it is a policy to fully comply with all applicable laws, regulation/s. Thus the
Company would not accept practice/s which are unlawful or which may damage its
reputation. Dealing With People In Organization In dealing with each other, the
Company expects that the basic values of trust, teamwork, mutuality, objectivity, self
respect and human dignity should be honored and adhered to.In fact, these values form
the basis of HR Management system of the Company.
A Gender Friendly Work Place
The Company is committed to a gender friendly work place. Besides instituting good
employment practices, it also endeavors to enhance equal opportunities to men and
women, prevent/stop/redress sexual harassment if any, at work place. The Company also
seeks to demonstrate and promote, professional behavior and respectful treatment at
workplace.
Health And Safety
At Banco, great importance is attached to healthy and safe work environment. It seeks to
ensure good physical working conditions, high standard of hygiene and housekeeping.
With a view to develop/increase safety awareness, due attention should be paid to
training of employees.
Environment Policies
The Company is committed to best practices in environmental matters and expects each
one who is associated with its activities, to demonstrate this commitment. Thus, besides
complying with applicable law/s and / or regulation/s, it is expected that it would strive
for establishing best practices and procedures on environmental related matter/s.


Avoiding Conflict Of Interest
The Company expects that its Directors and senior management team members should be
scrupulous in avoiding any situation of conflict of interest with the Company. This is an
area in which it is impossible to provide comprehensive code but the guiding principle, at
Banco, is that any conflict or a potential conflict must be discussed with the top
management for guidance/appropriate action/s.
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Transparency And Audit ability
At Banco, it is strongly believed that all the actions in conduct of business should be
transparent except where the needs of business secrecy require otherwise. Such
transparency would be continued to be developed through appropriate system
mechanism, involving more than one manager in key decisions making and maintaining
supporting records. Similarly, it is expected that each one should ensure that the
operational areas are open to audit systems and procedures and conduct of activities
auditable.
Maintenance Of Confidentiality
Banco strongly emphasis that its Directors, Senior Management team members and other
employees shall maintain the strict confidentiality in respect of its confidential
information or that of any customer, supplier or any other business associate of the
Company to which the Company has a duty to maintain confidentiality, except when such
disclosure is legally mandated or is authorized. Similarly, the use of any confidential
information for ones own advantage/profit is strictly prohibited.
Protection And Proper Use Of Companys Assets
Banco expects that each one using Companys asset/s should ensure its proper usage and
ensure the protection of Companys assets, as well. Theft, carelessness and wastages of
Companys assets and property would have a direct bearing on Companys profitability.
Companys assets should be used only for legitimate business of the Company.
Usage Of Electronics Resources
Usage of electronics resources is an integral part of business. The Company expects that
electronic resources would be used for business purposes of the Company and would be
used in ethical, effective and lawful manner.


Insider Shares Trading
The Company has in place a Code of Conduct for prohibiting the insider shares trading.
All persons who are in possession of any price sensitive information are required to
maintain stricter discipline while dealing with such information. Due compliances are
required to be made as per the said Code in force at the Company.
Public Disclosures/Media Disclosures
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As public Company, Banco is required, in the course of its business, on a periodical
basis, to arrange filings of various information/data, with SEBI, Stock Exchange/s (where
its securities are listed) and other concerned government agency. It is expected that such
filing would be made in the prescribed time limit laid down under concerned laws and/or
rules/regulations and the data should be accurate.

Similarly, when statement/information which might be given to any media channel, it is
expected that due care should be taken while making such disclosures and only true and
fair information relating to the Company be passed on after seeking requisite approvals
and/or guidance from the top management.
Modifications/Amendments
The Board of Directors of the Company is empowered to make necessary modifications
and/or amendments, from time to time, in this Code.
Waivers
Any waiver of the provision/s of this code for any Director or senior management team
member must be placed before the Directors of the Company for appropriate guidance.
.







OFFICERS OF THE CORPORATE
Mr. VIMAL K PATEL: CHAIRMAN & WHOLETIME DIRECTOR
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Mr. MEHUL K PATEL: CEO
Mr. KIRAN SHETTY: EXECUTIVE DIRECTOR
Mr. SHAILESH A THAKKER: EXECUTIVE DIRECTOR & CFO
Mr. ATUL G SHROFF: DIRECTOR
Mr. DINESH KAVTHEKAR: SECRETARY & OFFICER


SENIOR MANAGEMENT OF MARKETING DEPARMENT

Mr. Vishal Dua: MARKETING VICE PRESIDENT
Mr. M.J.Vyas: MARKETING GENERAL MENAGER
Mr. Dharmesh shah: MARKETING ASST. MANAGER
Mr. Rahul Agrawal: NEW PRODUCT DEVELOPMENT MANAGER



AWARDS AND CERTIFICATES

Banco Products (India) Ltd has been certified with ISO 9001 - 2008
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Banco Products (India) Ltd has been certified with ISO/TS 16949-2009

Banco Products (India) Ltd has been certified with ISO 14001 initiated - target
date Q3 2012-13


INDUSTRY PROFILE


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Banco Products (India) Ltd. is a specialist in engine cooling systems with 49 years of
experience in the field. It is one of the leading manufacturers and suppliers of original
equipment for commercial vehicles, passenger vehicles and industrial products.


We supply to most of the OEMs within India and have started supplying OEMs in
Europe, there is ongoing development for various inquiries for European/Japanese
OEMs.


Banco Products India Ltd. is also Indias leading exporter of aftermarket radiators to the
Europe, with a growing presence in the North American/Middle Eastern/African and
South American markets. Due to our products being designed beyond OE standards,
exceptional quality standards and unbeatable warranties our exports have been growing
at 30% annually.

















Sealing Gaskets

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Banco Products (India) Ltd. is a specialist in engine sealing systems, with five decades of
experience in the field. It is one of the leading manufacturer and development partner to
OEM companies, manufacturing diesel and petrol engines in India who are affiliated or
are subsidiaries of leading multinational companies from Europe, Japan and the USA.


In 2007, we commissioned a brand new factory to manufacture various types of Multi
Layered Steel (MLS) Gaskets for Cylinder Heads and the Exhaust Manifold applications
in technical collaboration of Japan Metal Gaskets (JMG), Japan.


We strive to provide quality products using technically sound manufacturing processes
and innovative product solutions to our customers, whilst utilizing environmentally
friendly manufacturing processes.


















Jointing Gaskets & Sheets

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Banco Products (India) Ltd. is publicly listed joint stock company established in 1962,
manufacturing gaskets and gasketing raw materials for all varieties for Industrial and
Automotive applications. Today, complete gaskets, rubber coated steel beaded gaskets,
compressed joining sheets and cork rubber materials are the main products of Gaskets
Division which are being supplied to leading OEMs, engine builders and gasket
manufacturers and distributors worldwide.

Our Compressed Joining Sheet Division is equipped with German Troestar calendars,
rubber mixers, solvent recovery plant, fully equipped laboratory for quality control
checks of critical raw materials and to do various tests on final sheets based on ASTM,
DIN, BS international standards. Our division is ISO 9001 certified by Underwriters
Laboratories Inc., USA.

We have a proven track record of continuous development of new compressed fibre
grades to meet objectives of specialized media selling, high temperature sealing, cost
effective general purpose grades based on synthetic and aramid fibres.





BANCO PRODUCTS INDIA LIMITED-INDIA FOOT PRINTS

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Industry Structure and Developments:
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The Automobile Industry in India has not done very well during the last Financial Year ended on
31.03.2013 due to global and domestic subdued Economic conditions, fluctuating crude Oil,
volatile Forex and rising domestic inflation.
This has resulted in to lower sales performance of the company resulting in substantial reduction
in the overall sales volume/ profits for full year ended on 31.03.2013.
Operations:
The Company has a very sound and integrated manufacturing facilities which have been
upgraded and are supported by sophisticated Research and Development facilities for new
projects OEM customers need.
Strengths:
More than Fifty years of experience in our business area gives our company a sound
understanding of the various applications and operating environments.
* Continuous Research and Development, adoption of new technology and process, quick
response, innovative product development, competitive price and delivery schedule.
* Sound Financial disciplined working.
Weakness:
* Major share comes from Automotive segment.
* Currently, the Automobile sector is in down word trend which has affected the performance of
the Company.
* Competition from global majors intensifying.
Opportunities:
* Developing OEM Customers overseas. Due to low cost base and good quality systems,
overseas OEMs and outsourcing present a good opportunity.
(I) Scope of expansion in new applications within existing sectors also.
(II) Better opportunities in earth moving, infrastructure development and power generation
sectors
Threats:
Competition from existing and new manufacturers. The European Markets currently are in
recession and it looks to remain so for next 12 months .
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The increase in prices of Petroleum products and the Inflationary pressure on the Economy in
general are some of the areas of concern.
Technology:
Banco has consistently strived to improve its Technology skills in its both manpower and
physical assets.
Investment in this area has yielded benefits in the past and will do so in future.
Internal Control and its Adequacy:
The Company has successfully obtained renewal of TS-16949 certification and now
started Lean 6-sigmaimplementation. Software for inter and intra department
communication and follow up has been up graded. For data security specifically in design
section.

The system of internal control designed to provide reasonable maintenance of proper
accounting records and the reliability of operational and financial information complying
with statues, safeguarding assets from unauthorized used or losses executing transaction
with proper authorization ensuring compliance of corporate policies used with a view to
running business.

The Company has clearly defined organization structure and lines of authority. Sufficient
control is exercised through monthly, quarterly and annual business review by the
management Review Committee and application of Corporate Governance. An internal
audit system is in place. Normal foreseeable risks to the Companys assets are adequately
covered by comprehensive insurance.

The Company has , during the year engaged the services of an independent Firm of
Chartered Accountants for the services of Internal Audit of operations of the Company
for better control and to ensure adequacy and efficacy of the Internal Audit function.

In line with well accepted practices and objectives, the planning and internal audit is
oriented towards their view of operational controls in the management risk strengths and
opportunities.

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The Company has an Audit Committee, which reviews the Reports of Internal and
External Auditors, make suggestions for improvements, follow upon the implementation
of corrective actions and keeps informed the Board of its major observation from time to
time.

Information Technology:
Company is successfully operating SAP (ERP) system .
Future Plans:
The Company will continue its efforts in improving the quality standard of products to
meet the local and global challenges.
(` in Lacs)
Expenditure on R&D 2012-2013 2011-2012
1. Capital 40.90 3.64
2. Recurring 307.70 385.66
3. Total 348.60 389.30
4. Percentage of R&D Expenditure to Total Turnover. 00.80 % 00.72%

Technology Absorption, Adaptation and Innovation:
Installed validation laboratory equipments for measuring life cycle of products (oil
coolers, off road
radiators, condensers, CAC for E-III and E IV) and development and use of new
generation raw materials
used for the same.

Benefits derived as a result of above:
(i) Because of the Research and Development activities, the Company could develop the new
processes and new products which enhance the engine life to give high heat transfer for effective
cooling of engines.
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(ii) The Company is equipped to meet the stringent customer specifications thus capturing the
domestic and global customers and is geared up for E-III and E-IV applications.
(iii) Achievement of newer process and product improvements level to develop the products eco
friendly and competitive

















BANCO PRODUCTS INDIA LIMTED - MARKET SEGMENT


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LAYOUT OF MARKETING DEPARTMENT








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LITERATURE REVIEW
TOPIC : Customers Perception Towards Proton Car Servicing Center Marketing

Author :Erasmus, A. C., E. Boshoff
Year :2001

ABSTRACT

The study of this research topic is to find out the effects of customers perception towards the
Proton car servicing center that the people are really satisfied with the servicing Proton which is
providing customers as what they have said in their corporate profiles and their statements in
newspapers. Due to globalization in the world customers are now more involved in how the
company is providing them with after sales services and their facilities or other added benefit
that they could gain after purchasing a product. These are all the important aspects customers
nowadays are looking into and thats how a customer also becomes brand loyal to your product.

INTRODUCTION
Majority of the multinational companies spend thousands of dollars to keep their customer
service department up to date and to provide better and better services to them. But we are here
to find out if this is really happening in Proton and are the people in Selangor area satisfied with
their servicing of cars. There are significant linkages between service quality dimensions and
overall customer satisfaction. Service quality has been identified as an important contributing
factor to the stability of an organization to retain customers in the business.

There is limited research related to the identification of critical determinations of customers
perception toward the Proton car servicing center. As a result, the research outcomes will help
Proton to understand customer satisfaction and their perception, which will enhance the servicing
quality.





OBJECTIVES

To access the effect of service quality in the automobile industry (Proton) on customer
satisfaction and their perception.

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To study the impact of car servicing on the customer satisfaction and their perception.

To study the factors that will influence customer satisfaction and perceived value for the Proton
car servicing.

The significance of this project is to contribute the initiatives that would assist the organization
to acquire thrust from its customers and to enable the customers to have a positive perception
towards the organization and have a better chance of being a long term customer in the business
organization. With reaching customers needs and wants, the organization would increase its
profit margin at a rapid rate.

METHODOLOGY
Random sampling: The research is going to be conducted among different servicing outlets
around Malaysia so as to acquire reliable information which would be chosen randomly. The
sample size would be chosen randomly in different locations with people who have got service
and to obtain the information on how they have perceived the services.

The research paper is basically a qualitative research. Data that would be obtained, it would
consist of primary and secondary data. With the assistance of questionnaire and interviews
accordingly being used.
Primary data would be obtained through interview and questionnaire. Interview would be
conducted to the different service outlets of perodua area. Questionnaires will consist of both
closed and open ended questions to help to get more information in a short period of time. They
will be distributed to the perodua service management and the customers.
Secondary data will be obtained through the reading of books and researches conducted from
external sources. This will give a clear understanding of the problem and hence result into better
outcomes/solutions in less time.

FINDINGS AND CONCLUSIONS
Basically, the customers perceptions are self-motivated. First of all, with the developing
relationship which is involving the customer and the company, his perception of the company
and its products or services will change. The further knowledge the customer builds up, the more
perceptions will move from actuality based judgments to a more general meaning the whole
relationship gains for him. Over time, he places a stronger center of attention on the result of the
product or service utilization.
In addition, if the customers situation changes, their wants and preferring over and over again
change too. In the outside surroundings, the contributions of competitors, with which a customer
evaluate a product or service will change, therefore changing his perception of the best offer
around. An additional point is that the publics opinion. The publics opinion towards certain
concerns can change as well. This result can reach from fashion developments to the public
expectation of good corporate citizenship.

27


Moreover, the research has been completed on the impact of market share on the perceived
quality of a product. Depending on the personality of the product and the customers preferences,
increasing market share can have positive or negative effect on how the customer perceives the
product. The concept of customer perception does not only relate to individual customers in
consumer markets. It is also valid in business to business situations. For example, a competitor
benchmarking survey of a large industrial supplier revealed that the market leader, although
recognized for excellent quality and service and known to be highly innovative, was perceived as
arrogant in some regions.

If we take into consideration that there are about four other large players with a similar level of
quality and innovative ideas, this perceived arrogance could develop into a serious problem.
Customers here are well aware the main characteristics of all the offerings available at the
market are largely comparable. So they might use the development of a new product generation
of their own to switch to a supplier that can serve them not better or worse, but with more
responsiveness and understanding.








Topic :Factors Which Affect Customer Perceptions In Purchasing Toyota Marketing

Author : Choy Johnn Yee
Year : 2011

ABSTRACT
This research proposal is to investigate the reason of what motivate customer to choose Toyota
car whether is it the price, brand, safety innovation and technology that make the purchasing
power of customer towards Toyota. These factors are used as independent variables to determine
the main points of customer when purchasing Toyota car.




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INTRODUCTION
Toyota Motor Co. Ltd was first established in 1937. The company are well-known in
manufacturing and producing vehicle such as cars, vans and it operates in 27 countries
worldwide. The worldwide production was 9.5 million in 2007 and their sales are keeping
increasing until they become the second world automaker in United States. They gain as the
number 1 carmaker in the world in 2008, passing General Motors which had been leader since
1931 (The New York Times, 2010).
Toyota organizations are the first to build the Toyota Production Systems (TPS) and
implemented the lean manufacturing in their systems. Lean manufacturing was included in the
TPS to eliminate waste, prevent the most optimum flow and assembly of material, from raw
material to finished goods (Perrin, 2006).

There were 7 principles that have been installed in Toyotas production system which are
reduced setup time, small-lot production, employee involvement and empowerment (Kaizen),
quality at source (Jidoka), equipment maintenance, pull production (Just-in-Time Production)
and suppliers production (Toyota Motor Corporation 2003). After the Toyota recalled accident in
early 2010, the company was worried about the future sales of the company. But they already
taking the precaution steps on overcome the issues and now to gaining back the customer trusts
worldwide. Therefore, Toyota wants to identify any feedbacks on customers perception when
they are purchasing Toyota car so that Toyota are able to understands and focus more in this
information and fulfill their customers needs and wants.

OBJECTIVE
This proposal is to study out what factors that drive customer to purchase Toyota car. Toyota is
able to find out what are the customers necessities for a car such as the price, quality,
technology and safety innovation affects the purchase consideration. This information was
helpful to Toyota as they have the competitive advantages in drag up their sales and profit
because Toyota can improve their product to suit customers needs worldwide.


The first steam powered car was built by the French military engineer, Nicole Cugnot in 1769. It
is not easy to become the first people to invent the vehicle because it surely needs a lot
refinement to do. Hence, after several troubleshoot and analysis, he improved the car that he
creates such as the steering and braking system in the car. Over the year, car rapidly evolved
from using steam power to petrol as their main power to move the car. After the crude oil
increasing few years ago, hybrid car become more and more reliable among the car users as it
save cost in term of petrol and also good for the environment.

According to the Maslow Hierarchy of needs, car can be categorising in the security level. This
security or safety issue are very important to the customer in purchasing a car. In this level,
people tend to be more complex as they want to control and order their lives for survives from
any harms such as against incident and injury . For the recent survey, most of the customer is
29

more focus on the safety of the car rather than fuel consumption of the car. Customer are try to
understand the additional attributes in the cars security before they buying it. Customer will like
to test drive the vehicle to understand more about the handling, stability of the car and how the
anti-lock brakes work. Customers act is necessarily so that they are well-known about their car
security capabilities and comfortable to drive on the road . The table below show the most
important factors for customer to buy a car.



The quality of car in Toyota is undeniable. Even thou they have encounter serious problem to
recall back certain model of their cars such as Toyota Avalon and Highlander, Lexus GS300 and
Lexus IS250 to replace the brake master cylinder seal that cause the dimness of the brake
warning lamp rather than keep silently about the error in their product.

The quality of Toyota car are said to be proven because they have few principles that make the
condition of the car assured. Firstly, Jidoka principle focus on the functional areas of
manufacturing and production areas which Toyota concern the most about their quality and
improving in their quality works. Jidoka, which are the principles about the quality must be
concern and be built in during the manufacturing process . Jidoka was a method to detect any
defective production and stopped the working process from being continuous until they solved it
down.

When a quality or equipment problems occurred, the machine will detected itself and stopped.
As a result, only goods products that are fulfilled the quality standards will be use in the next
activity on the production line. This contributes to save cost of resources uses because the
systems avoid defective product from being produce again and again.

FINDINGS AND CONCLUSIONS
For achieving higher Kaizen standards, it also needs them to accomplish greater standards and
maintain their capability to meet those standards on continuing basis . Other than that, the
workers are allowed to give viewpoint that can suggest to an important and remarkable idea
about the quality improvements or working process improvements and most importantly in the
decision making process.

The last principles but not least was Just-in-Time (JIT). The concept of this principle was
basically applying more to the customer care and demand. The organization only produced the
car amount just when they have received from the customer orders. After receiving an orders,
production instruction will issues to the production line as early as possible . The benefits of this
were the work-in-progress of the workers become lesser and also the productivity of vehicle
increasing because of reducing part-related delayed .

30

With all the principles applied, the quality of Toyota cars is dependable and high in quality.





TOPIC : The Dynamics of Market development and Expansion Strategy in Emerging
Markets: Wal-Mart in Latin America

Author: Dino Ovcina
Year : 21 April, 2010


ABSTRACT
This research investigates the internationalization process and potential issues related to market
entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the
Emerging Markets of Latin America, and discusses the different entry and expansion decisions
being made by the company. Furthermore, the research critically evaluates the dynamic
challenges facing developed country firms in their market entry and expansion strategies in
emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry
modes in emerging markets. The research, based on an inductive approach, has been conducted
as a case study by the use of secondary data.

INTRODUCTION
Wal-Mart began its internationalization by entering the two geographically nearest markets,
namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic
move aiming at reaching the companys overall goal of becoming the leading player in Latin
America. Mexico together with Brazil are the two main emerging markets of Latin America
characterized by a high growth potential on one hand, but a risky economic and political
environment on the other. However, in the 1990s the economic and political environment
became more stabilized, leading to an increased targeting by developed country retailers such as
Wal-Mart. Due to the cultural differences, different consumer preference and only recently
stabilized economic and political environment, Wal-Mart decided to enter the Mexican and
Brazilian market through a Joint Venture. The idea has been to use Mexico and Brazil as
strategic bases for further expansion into other Latin American markets. Experience and
knowledge from one market should be passed on to other markets in order to have a more
smooth entry in the future. However, Wal-Mart was not always successful in doing so and
experienced several challenges in the Brazilian market after the entry in 1995.

31

Those challenges, but also the fact that Wal-Mart over a short period had entered several foreign
markets, meant that the expansion within the Brazilian market was slowly progressing in the first
0 years after the entry. Wal-Mart expanded its Brazilian operation slowly through organic growth
in the rich South Eastern part of Brazil, but it was with the two large acquisitions (of their rivals)
in 2004 and 2006, respectively that the company became an important player in the Brazilian
market. Wal-Mart has been most successful when acquisition has been used as the entry or/and
expansion strategy but as this research shows the external environment of the target markets
plays an important role regarding the decisions being made.
This research is estimated to be an interesting source of learning for retailers who wants to
expand their operation into the Emerging markets of Latin America and/or other Emerging
Markets and more broadly for firms wishing to enter and expand in emerging markets

OBJECTIVE
Therefore, this study aims at investigating the internationalization process of Wal-Mart into the
emerging markets of Latin America. Furthermore, the objectives are:
1. To outline the potential issue relating to market entry and expansion strategy for international
firms;
2. To analyze the development of market entry and expansion strategies in the food retail sector;
3. To critically evaluate the dynamic challenges facing international firms in their Market entry
and expansion strategies in Emerging Markets;
4. To identify some key success factors for firms entering and expanding in emerging markets.

The research focuses solely on the entry and expansion strategies into the emerging markets of
Latin America. Within this area it looks at different challenges: operational, cultural, consumer,
product and economic, experienced by Wal-Mart in Brazil and other Latin American markets.
The research is limited in terms of looking at issues regarding the challenges of creating strategic
alliances (e.g. JV or acquisition). This is a broad topic with several different aspects, and will
only briefly be mentioned as it is beyond the scope of this research. In addition issues relevant to
market entry and expansion, such as pricing and promotional strategies are not focused on here.
The author is aware of the importance of these other issues when entering foreign markets, but
has decided to place the emphasis on the issues outlined above.


FINDINGS AND CONCLUSION
Having covered and reviewed the merits and limitations of the available literature, this section
aims at identifying how this research will build on the existing literature. The main limits
identified are that the existing literature does not cover the dynamics of entry modes and lacks
32

depth in relating the choice of entry modes to the entry of emerging markets. It is estimated that
this research will add new knowledge and value in both of these two areas. This will be done by
investigating the entry strategies of a developed country retailer into emerging markets and by
identifying the considerations behind the decisions. Furthermore, the research will continue by
focusing on the dynamics of entry modes, which can be used as a strategy in order to expand on
the target market(s) after entering the market. A more contextual and detailed picture of the
internationalization process (entry modes and dynamics of entry modes) will be given since the
focus is on a certain type of market (an emerging market) and on a specific industry (a retailer
industry).

TOPIC: Market development and Product Line Strategies Ought Organizations to Adopt
for Emerging Economies?
Author : Joseph Cherian
Karen J. Crooker
Year : 2010
ABSTRACT
Emerging economies offer tremendous potential for organizations seeking to expand globally
and to attain the associated rewards. However, organizations differ in their entrepreneurial
tendencies to enter new markets and to introduce new products in emerging economies.
Organizations also differ in their abilities to manage their development programs, that is, their
execution of different types of projects that lead to success in emerging markets. Finally,
organizations differ in which overall measures of program performance are consistent with their
strategic objectives.
This study provides a literature foundation and conceptual framework designed to understand
which market entry and product line strategies and performance measures are appropriate for
organizations pursuing strategic success in emerging markets.

INTRODUCTION
This study sets forward grounded propositions that different strategic types will vary in their
market entry and product line strategies, in the project composition their development programs,
and in the orientations of performance measures used to evaluate their development programs.
Prospectors, according to type, will enter emerging economies by introducing new product lines
to new customer types,
and by emphasizing new-to-the-world products. They will evaluate their development programs
with Growth-oriented performance measures. Defenders will more typically occupy secure
33

niches within emerging economies by emphasizing product improvement and cost reduction
projects for current types of customers. They will evaluate their development programs with
Efficiencyoriented performance measures. Analyzers will either target new customer types with
proven products, or serve an existing market niche with new product lines. They will evaluate
their development program performance with Strategyoriented measures.

OBJECTIVE
This conceptual study is used for an investigation of propositions regarding organization types,
as related to their two key entrepreneurial traits, their entry into markets and their development
of products. The study also enquires about how organization types differ in their development
programs and the program performance measures they use in emerging economies.

This study suggests that of the three stable organization types, Prospectors are more likely to
respond early to the needs of new markets in emerging economies with new products . they are
more likely to emphasize new to the world products or major innovation. This study suggest that
defenders are more likely to be the indigenous providers in emerging economies, with a narrow
range of stable products.






FINDINGS AND CONCLUSIONS


This study suggests that future researchers will better understand the behavior of different
organization types in emerging economies, if they consider their entrepreneurial traits,
specifically their market entry and product line strategies. Future research into the efficacy of
managerial practices in emerging economies will be enhanced if performance is evaluated
against strategy-based measures. Researchers may enhance the validity of their performance
studies by selecting outcome measures considered important by practitioners. Most importantly,
researchers ought to be aware that no single performance measure is satisfactory across all
strategic types. This study has clear limitations, which will be overcome by future research on
organization types, development programs, and performance measurement. It is hoped that this
conceptual framework contributes to the growth of research in this exciting discipline of
organizations entering markets in emerging economies








34









RESEARCH PROPOSAL

PROBLEM STATEMENT


A Market development is the name given to a growth strategy where the business seeks
to sell its existing products into new markets for the new customer to increase company
performance by increasing sales and profits.

As the level of competition keep on increasing in automobile market, it is essential for
every automobile producer companies to understand customer insight in order to further
increase their share of wallet. Thus, they need to understand what factors might influence
their customers decision in purchasing an automobile.


The project was an attempt to know the reasons behind lower market development of
banco products in vadodara region.

Despite of being a renowned brand i.e. banco products, the sale picture in vadodara region
is very bleak due to stiff competitors like mahendra, TATA motors etc.

There is a need to revamp the company and position it all over again in the mind of the
customer.

OBJECTIVE



The main objective of this project is to probe the reason behind the low market share of
Banco products and to find out the measures that can be adopted to increase the market
development in the vadodara region..


To get the feedback from current customers of our product.

To add up new customers.

To study Banco's positioning in the mind of the consumers
35

competitively in the market, creating more awareness among the potential customers.


To find out the factors that affect customers decision to purchase Banco products.

Suggesting viable recommendations to be implemented in the area.
To develop the market of banco in vadodara region.


BENEFITS OF THE STUDY

The study can be used to know the perception of consumer about Banco products.
The study would help banco to develop a market in vadodara region and which would help
decrease in transportation cost.
The present study can be extended to access the present marketing condition of Indian
automobile sector.
The study can be used to design a proper product, price, place and promotional strategy
for the market.
From the present study we can know the market share of different products and
accordingly formulated strategy to enhance it.
This study can be applied to find out an effective distribution channel to enhance the sale
of various products of Banco products.

Factors is required in order to understand their priorities which can be worked upon. For
this purpose a research is to undertaken to find out the market scenario.

With the help of the responses given by the consumers and data analysis, the company
will be able to understand its strengths, weakness, opportunities and threats.

The survey report submitted by me will assist the company to take right decisions to
increase the turnover and market share.



36



RESEARCH METHODOLOGY


The purpose of methodology is to describe the process involved in research work. This
includes the overall research design, data collection method, the field survey and the
analysis of data.




SOURCE OF DATA COLLECTION:

PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.



RESEARCH DESIGN:

Research Design is the arrangement for conditioned for data collection & analysis of data
in a manner that aims to combined relevance to research purpose with economy in
procedure.

A research design is a master plan or model for the conduct of formal investigation. It is
blue print that is followed in completing study.

The research conducted by me is a descriptive research for customer perception of banco
and exploratory research for market development in vadodara region.

This is descriptive in nature because study is focused on fact investigation in a well-
structured form and is based on primary data.

Exploratory research is a type of research conducted for a problem that has not been
clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects. It draws definitive conclusions only with
extreme caution.



AREA OF THE STUDY
The research is conducted at Vadodara among region of salatwada, bhutda zampi,
karelibaug, padra.


37



SAMPLING DESIGN:

A sample design is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure that researcher would adopt in selecting items to be
inched in the sample i.e. the size of sample. Sampling plan is determined before data are
collected.



MEASUREMENT SCALE
Likert scale
A likert scale is a psychometric scale commonly involved in research that
employs questionnaires. It is the most widely used approach to scaling responses in survey
research, such that the term is often used interchangeably with rating scale, or more
accurately the Likert-type scale, even though the two are not synonymous. The scale is
named after its inventor, psychologist Rensis Likert. Likert distinguished between a scale
proper, which emerges from collective responses to a set of items and the format in which
responses are scored along a range
The format of a typical five-level Likert item, for example, could be:
1. Strongly disagree
2. Disagree
3. Neither agree nor disagree
4. Agree
5. Strongly agree


SAMPLING SIZE:
Total sample size is 100.

SAMPLING METHOD

Convenient sampling is used in this study.

Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.


38


RESEARCH TOOLS FOR THE STUDY:
Percentage analysis and Pie chart

DATA COLLECTION DESIGN
Questionnaires will consist of both closed and open ended questions to help to get more
information in a short period of time. closed ended questionnaire-Closed ended questions
include all possible answers/prewritten response categories, and respondents are asked
to choose among them.

-e.g. multiple choice questions, scale questions
- Type of questions used to generate statistics in quantitative research.
- As these follow a set format, and most responses can be entered easily into a
computer for ease of analysis, greater numbers can be distributed.















39



QUESTIONAIRE
DATA ANALYSIS:

The information collected from the respondents is analyzed and interpreted in the form of graphs
and tabulation. The following tables show the respondents views on the various questions:
Table Number. 5
Are you aware of banco products ltd?
Response Frequency Percentage (%)
Yes 90 90
No 10 10
Total 100 100




YES
NO
40



How did you come to know about banco product?
Response Frequency Percentage (%)
Website 21 21
Sales person visit 10 10
Dealers 49 49
Other 20 20
Total 100 100














Website
Mechanic
Dealers
other
41









Since how long are you using the banco product?
0-4 years 20 20
4-6 years 25 25
More than 6 years 55 55
Total 100 100







0-4 years
4-6 years
More than 6 years
42




How do you rate the purchase process in banco products ltd?
Response Frequency Percentage (%)
Highly satisfied 0 0
Satisfied 75 75
Dissatisfied 0 0
Average 25 25
Highly dissatisfied 0 0
Total 100 100








Highly satisfied
Satisfied
Dissatisfied
Average
Highly dissatisfied
43


Are you satisfied with product briefing done by the sales executive?
Response Frequency Percentage (%)
Highly satisfied 0 0
Satisfied 95 95
Dissatisfied 0 0
Average 5 5
Highly dissatisfied 0 0
Total 100 100



Are you satisfied with the after sales service provided by banco?
Response Frequency Percentage (%)
Highly satisfied 0 0
Satisfied 65 65
Dissatisfied 0 0
Average 35 35
Highly dissatisfied 0 0
Total 100 100

Highly satisfied
Satisfied
Dissatisfied
Average
Highly dissatisfied
44



What is your opinion on the performance of banco?
Response Frequency Percentage (%)
Excellent 0 0
Satisfactory 45 45
Good 0 0
Average 55 55
Poor 0 0
Total 100 100
-
Highly satisfied
Satisfied
Dissatisfied
Average
Highly dissatisfied
45










On the basis of price and feature comparison, is banco products economical?
Response Frequency Percentage (%)
Yes 55 55
No 45 45
Total 100 100


excellent
satisfactory
good
Average
poor
46



Is there any issue related to the price list of banco products?
Response Frequency Percentage (%)
Yes 75 75
No 25 25
Total 100 100

Yes
no
47



Availability of the products with the dealer?
Response Frequency Percentage (%)
Easily available 85 85
Hardly available 15 15
Total 100 100

Yes
No
48




Is there any quality issue?

Response Frequency Percentage (%)
Yes 20 20
No 80 80
Total 100 100

Yes
No
49







is there any innovation in the product according to the new cars availiable in the
market?

Response Frequency Percentage (%)
Yes 70 70
No 30 30
Total 100 100
Yes
No
50

*
How is the Banco's promotional activities?
Response Frequency Percentage (%)
Yes 70 70
No 30 30
Total 100 100


Yes
No
Yes
No
51


Do banco pay timely turn over discount?

Response Frequency Percentage (%)
Yes 80 80
No 20 20
Total 100 100

Do they have new range of product?

Response Frequency Percentage (%)
Yes 57 57
No 43 43
Total 100 100


Yes
No
52





Do they provide list of new products?
Response Frequency Percentage (%)
Yes 80 80
No 20 20
Total 100 100
Yes
No
53


Do they respond to your claims?
Response Frequency Percentage (%)
Yes 75 75
No 25 25
Total 100 100



Yes
NO
Yes
No
54


Do dealers lack confidence?

Response Frequency Percentage (%)
Yes 35 35
No 65 65
Total 100 100


Do company visit you regularly?

Response Frequency Percentage (%)
Yes 72 72
No 28 28
Total 100 100




Yes
No
55







All the commitments are fulfilled?

Response Frequency Percentage (%)
Yes 85 85
No 15 15
Total 100 100

Yes
No
56




what are the parameters you miss in banco?
Ans New range of the products for newly available cars in the market are not available.
Products for Wagon R , alto are not available.

what do you like the most of banco products?
Ans. quality of the product.











Yes
No
57

Do you recommend banco products to your customers?

Response Frequency Percentage (%)
Yes 90 90
No 10 10
Total 20 100




How likely are you to buy our product in future?

Response Frequency Percentage (%)
Yes 90 90
No 10 10
Total 100 100

Yes
No
58
























Yes
no
59




CONCLUSION

Customer perception is the important factor , which affects the financial position and
goodwill of the company. Customer demands are dynamic, but its consideration is
necessary for every company to make existence into the market

This project was about the banco products company which due to intense competitions
from its competitors have relatively small market share in vadodara region . so in this
project different parameters on which the sale of the banco products company depends
and customers perception are studied and analyzed from the customers.


From the findings we can conclude price ,availability of the products with dealers &
distributers, and innovation of the new range of products are the important areas affecting
customers perception towards banco.


Banco products Ltd has a strong presence in the export market due to its product quality
.Most of the respondents are satisfied with the products quality, purchase process and
services provided by the banco company.


Consumer perception towards Banco is good. In today's competitive environment ,it is
very important to know the perception of the consumer so that the company will be able
to compete in the market with its competitors.











60







SUGGESTIONS


Banco products should innovate their products according to the new cars available in the
market. The company should focus more in research and development by implementing
new range of products with new design and features in the product especially in radiators
which has a limited range.

Company should not delay in delivering of the products as it will have a negative impact
on the customers and thus will result into losing customers.

Company should ensure that the dealers have the availability of the products in stock
which will not create a problem when the mechanic demands.

Company should regularly visit the customers and respond to their claims which will
enhance customer satisfaction.

Company should increase the list price which will ultimately help the dealers to provide
discount to the distributors and retailers

Company should increase their promotional activities as to create more awareness in the
customers and it should emphasize more on the ground level work so as to improve the
thickness and quality of the gasket.











61


BIBLIOGRAPHY:

Donald Cooper & Pamela Schindler, Business Research Methods, 9
th
edition, Tata
McGraw Hill publishing company.
- Website :
www.answers.com
www.citehr.com
www.scribd.com