EXECUTIVE SUMMARY

In the age of fast changing Marketing strategies, customer behavior, new

marketsegments and product opportunities along with sensitivity to changing
customer needs,the Hero group develops and adapts marketing strategy and
philosophy. As the Herogroup is known for its completely customer- driven
approach. For that very reason HeroCycles CRD undergoes this project.The main
aim of the project is to know the purchase criteria / Buying Behavior of
customers of the Cold Rolled Steel Strips/ Sheets provided by the Hero Cycle
C.R.Division and used in various industries (Automobiles, Bicycle etc.) in
Ludhiana.The customers perceive Quality as the most important factor while
purchasing. Morecustomers will be attracted towards the products if quality
parameters such as surfacefinish, peeling off etc. are improved upon by getting
continuous feedback on the qualityand other services provided by the company.
The second most important factor isdelivery system and price. The price should
be competitive with the other suppliers. Thethird most important factor is Credit
policy of the company. Better credit facility should be given to the customers and
payment norms should be simplified. Quality should beused to cover the price.
Improvement in quality, Services, Delivery and Rate reductionshould be made to
further increase the market share and to attract the new customers of C.R. Steel
Strips/ Sheets
CONTENTS
CHAPTERSCHAPTER-1

INTRODUCTION OF THE PREOJECT

REVIEW OF LITERATURE

OBJECTIVE OF STUDY

SCOPE OF STUDY
CHAPTER-2

COMPANY PROFILE
CHAPTER-3

RESEARCH METHODOLOGY


UNIVERSE OF STUDY

SAMPLING TECHNIQUES

PERIOD OF STUDY

LIMITATIONS OF STUDY

SCOPE FOR FURTHER STUDY

CHAPTER-4

ANALYSIS OF TOPIC

CONCLUSIONS

INFERENCES

SUGGESTIONS & RECOMMENDATIONS

CHAPTER-5

BIBLIOGRAPHY

QUESTIONNAIRE

INTRODUCTION TO THE PROJECT

The project was given to me to study the
FACTORS AFFECTING BUYINGBEHAVIOR OF CUSTOMERS OF COLD ROLLED
STEEL STRIPS/COILS INLUDHIANA.
So, the area of operation for me was the
MARKETING DEPARTMENT
of the organization.The first task for me was to know about theconcept on which
my project was based. Then I had to set criteria, on the basis of whichthe above
concept was valued. The data was collected for each of the parameter
foundresponsible in influencing the buying behavior of the customers though
MarketingResearch Program.

INTRODUCTION TO CONSUMER BEHAVIOUR

The Business market is comprised of organizations that in some form are
involved in themanufacturing, distribution or support of products or services sold
or otherwise providedto other organizations. The amount of purchasing
undertaken in the business marketeasily dwarfs the total spending by
consumers. Because the business market is so large, itdraws the interest of
millions of companies worldwide that market exclusively to business customers.
For these marketers understanding how businesses make purchasedecision is
critical to their organizations marketing efforts. In some ways understandingthe
business market is not as complicated as understanding the consumer market.
For example, in certain business market, purchase decision hinge on the
outcome of a bidding process between competitors offering similar products and
services. Thus unlikeconsumer markets, where building a recognizable brand is
very important, for many purchase situations in the business market this not the
case.However, in many other ways business buying is much more complicated.
For instance,the demand by business for products and services is affected by
consumer purchases(called derived demand) and because so many organizations
may have a part in creatingconsumer purchases, a small swing in consumer
demand can create big changes in business purchasing. Automobile purchases
are a good example. If consumer demand for cars increases many companies
connected with the automobile industry will also seedemand for their product

and services increase. Under these condition companies willratchet up their

operations to ensure demand is met, which invariably will lead to new purchases
by a large number of companies. In fact, it is conceivable that an increase of just
one or two percent for consumer demand can increase business demand for
productsand services by five or more percent. Unfortunately, the opposite is true
if demanddeclines. Trying to predict these swings requires businesses to not only
understand their immediate customers but also the end user, which as we will
discuss, may be will downthe supply chain from where the business operates.

WHO MAKES UP THE BUSINESS MARKET?

There are millions of organizations worldwide selling their products and services
to other organizations. They operate in many industries and range in size from
huge multinationalcompanies with thousands of employees to one-person small
businesses. With such alarge number of originations and industries contained
within the business market, amarketer can obtain a better picture of who is
involved by looking at popular businessclassification systems set up by
international governments, such as the North AmericanIndustrial Classification
system (NAICS), which covers Canada, Mexico and the UnitedStates and the
International Standard Industrial Classifications (ISIC), which is widelyused in
Europe. These reports provide descriptions of hundreds of industry classification.
Supply Chain Members
The supply chain consists of mostly for-profit companies engaged in activities
involving product creation and delivery. Essentially the chain represents major
steps needed tomanufacture a product that will eventually be sold as a final
product. Each member of thesupply chain purchases products and services
enabling them to carry out its businessobjectives.When making purchase
decisions supply chain members may be motivated by suchfactors as:

Product cost

Return on investment

Assurance of consistent supply

Reciprocity with supplying firm

Ques2. What is your status in supply chain?a. 1 tier b. 2 tierc. 3 tierQues3. Do

fluctuations in market affect your buying behavior?a. Yes b. NoQues4. In which
form do you buy steel?a.CR Coilb.CTL (Cut To Length)Ques5. Which grade(s) of
steel do you purchase?a. D b. DDc. EDDd. MC-11 e. MC-12 f. IFQues6. What is
your monthly requirement of CR steel grade wise?a. D
_____________________________ MTb. DD/EDD _____________________________ MTc.
MC-11/12 _____________________________ MTd. Others _____________________________
MTQues7. Which factors do you consider the most while purchasing CR steel?
(Rank 1 5 in order of preference)
a.
Priceb.Qualityc.Lead timed.Credit facilitye.After sales servicesQues8. From which
supplier(s) you are buying presently?Please specify the quantity
also.a.___________________________Qty __________ MT

b.___________________________Qty __________ MTc.___________________________Qty

__________ MTQues9. Do you have any expansion plans in near future & what will
be yourincreased capacity?a. Yesb. No____________________________________MT
(approx.)Ques10. What quantity of your increased capacity of CR steel will
youpurchase from HERO CYCLES Ltd (CR Division)?
____________________________________ MT (approx.)Ques11. What are the problems
that you face while purchasing CR steel?
a.______________________________________________
b.______________________________________________ Ques12. What are the
suggestions that you can give to counter those
problems?\a.______________________________________________
b.______________________________________________
Rate HERO CYCLES Ltd (CR Division) in terms of following parameters:(Give
rating from 1-5) 1 = Poor & 5 = Excellenta.Company
imageb.Deliveryc.Conformance with specificationsd.After sales
servicese.Response timef.Accommodation of urgencies

Date:(Signature