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A Study on Customer satisfaction towards VRL logistics, Hubli

1.1 Meaning of Logistics


A widespread idea prevails that logistics is the ‘movement of goods’ that is narrow concept.
Logistics is much more and much wider than mere physical handling of goods. Logistics
involves several other functions such as purchasing, plant location, plant layout, etc., and
even the disposal of wastes. It covers astonishingly varied professional disciplines. They are:

 Facility location
 Forecasting and order management
 Planning
 Transportation : the mode and the route
 Inventory management: all inventories
 Warehousing
 Protective packaging
 Information : maintenance and flow

1.2 Definitions

Many definitions are given for ‘logistics’. Here are some: “Logistics is .......

 Strategically managing the procurement and movement of goods and storage of


inventory an all forms.”

 The process of strategically managing the procurement ,movement and storage of


materials, parts and finished inventory (and the related information flows) through the
organisation and its marketing channels in such a way that current and future
profitability are maximised through the cost-effective fulfilment of orders”

 The study and management of goods and service flows and associated information
that set these in motion”

These definitions give the idea of the wide range of functions that logistics covers. A simple
definition is: “Logistics is delivery of the required place, at required time, in required
person......efficiently”

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A Study on Customer satisfaction towards VRL logistics, Hubli

1.3 Gulf War

The idea of what logistics is, from the fact that, in 1991 Gulf War, the US and the allies
airlifted half a million people and over half a million tonnes of materials over 12,000 km and
moved additional 2.3 million of equipment by sea, in a short time frame. That kind of
movement is more than physical handling. That is logistics.

1.4 Reverse Logistics

Another dimension to logistics is ‘Reverse Logistics’ (Rev Log). Goods return from the
consumer point to the original and supply point, for various reasons. Bad delivery, over-
supply, damage, expiry failing inspection tests at the customer point, goods unsold etc., are
some instances where the materials transverses back. That is Reverse Logistics. The material
that has to come back to the original point, or to the original supplier, has also to be handled
effectively and efficiently. ‘Maintain a Rev Log’ system.

1.5History of logistics

Logistics can be defined as providing the right type of products and/or services at the right
price, time and in the right condition. A quick look at some logistics history may prove very
enlightening.

The birth of Logistics can be traced back to ancient war times of Greek and Roman empires
when military officers titled as ‘Logistikas’ were assigned the duties of providing services
related to supply and distribution of resources. This was done to enable the soldiers to move
from their base position to a new forward position efficiently, which could be a crucial factor
in determining the outcome of wars. This also involved inflicting damage to the supply
locations of the enemy and safeguarding one’s own supply locations. Thus, lead to the
development of a new system which can be related to the current day system of logistics
management.

During the Second World War (1939-1945), logistics evolved greatly. The army logistics of
United States and counterparts proved to be more than the German army could handle. The
supply locations of German armed forces were inflicted with serious damages and Germany
was not able to wreak the same havoc on its enemy. The United States military ensured that

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A Study on Customer satisfaction towards VRL logistics, Hubli

the services and supplies were provided at the right time and at the right place. It also tried to
provide these services when and wherever required, in the most optimal and economical
manner. The best available options to do a task were developed. This also gave birth to
several military logistics techniques which are still in use, at best in a more advanced form.

Logistics has now evolved itself as an art and science. However, it cannot be termed as an
exact science. Logistics does not follow a defined set of tables nor it is based on skills
inherited from birth. A logistics manager performs his duties and responsibilities based on his
educational experiences and intuition. These skills are nourished by a constant application of
the same by him for betterment of his organisation. The logistics manager ensures that the
company is benefited by an effective and efficient system of logistical management. He also
needs to ensure that the right kind of products and services are provided at the right time and
for a right price, whether inside the organisation’s premises or delivery of shipments outside
the premises of the organisation.

Logistics has come to be kind of relief for many organisations that formerly looked upon it as
a burden. Companies nowadays are hiring people with the requisite knowledge to deliver
sustainable enhancements in the field of supply chain management. As has been the case
throughout most of logistics history, the task of a logistics manager involves a clear vision
and a drive within to deliver results under strict deadlines in addition to his usual
responsibilities.

1.6Logistics Market

India’s railways carry daily an average of twelve million passengers and over a million
tonnes of freight traffic on a network spread over 62,725 km, covering 7,068 stations. It
operates on three gauges i.e. broad gauge (1676 mm), meter gauge (1000mm), and narrow
gauge (762 and 610mm). Although broad gauge forms only 64.5% of the route, it generated
96% of freight output and 89.6% of the passenger output during 2007-08.
In the same year, total passenger traffic was 4,018 million. 19.5% (12,306 Km) of the total
network and 30% of the broad gauge network is electrified. The railways are the largest
employer in the country, with over 1.6 million employees. Operating revenue in 2007-08 was
approximately 3.7 billion.

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A Study on Customer satisfaction towards VRL logistics, Hubli

The 6000 km long Indian coastline has eleven major ports (managed by the port trust of India
under central government jurisdiction) & 163 intermediate ports (under the jurisdiction of
their respective state governments) however, as regards capacity, productivity and efficiency
Indian ports do not compare well with some of the international ports.
In 2007-08, the total cargo handled at major Indian ports was 251.39 million tonnes, and
growing demand has meant that the average ship turnaround time at these ports is increasing.
dry & liquid bulk account for around 80% of the port traffic in volume, while general cargo
constitute the remaining traffic.

India’s road network of almost 3 million km is one of the largest in the world. With the
staggering increase in the motor vehicle population in recent years, the Indian government
recognised the urgent need to develop adequate road networks across the country, and has
introduced a series of far-reaching measures investment in the network.
The reduction of trade barriers, both on the domestic as well as international front, has led to
a rapid growth of the logistics market throughout the world. Items such as Swiss cheese,
Chinese gadgets and Italian fashion goods that were earlier limited only to the place of
manufacture have now crossed the geographical boundaries to take their place in the
international market. This has indeed globalised the area of operations and has benefited
several economies.

How that is made possible? Obviously, apart from favourable governmental policies, it is the
growth of logistics that has made all this possible. The boundaries have been minimised due
to advances in the modes of transportation. Logistics not only deals with delivery of goods at
the right time, for right price, and in right condition, but also has extended its role in
globalising the sphere of the products and services.

The growth is eminent in the Asia- Pacific region with China emerging as a global economic
power with a seismic effect on the global market of logistics. India is steadily following
china’s footprints by consistent marching into the field of logistics due to favourable market
trends, outsourcing and government policies. Developed nation like the United Kingdom and
the United States already have strong logistics policies and are keen to outsource from China,
India and Asia-Pacific due to the cost factor.

In the current business scenario, there are ample job opportunities for people in the field of
logistics and slowly and steadily the area and scope of logistics is on the upswing. With the
increase in demand for logistics professionals, logistics organisations are raising their sphere

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of influence to unparallel heights. The growth and development witnessed in the logistics
sector is likely to fuel further growth for many more years to come.

Thus it would be right to conclude that the logistics market finally has its due share with
ample job opportunities available and logistics being considered as an integral part of most
savvy organisations.

1.7 Role of Logistics are as follows

Role of logistics in supply chain management: A supply chain refers to the way that materials
flow through different organisations, starting with raw material and ending with finished
products delivered to the ultimate consumer. Supply Chain Management can be viewed as a
pipelines or conduit for efficient and effective flow of products, services, information from
suppliers through the various intermediate organisations out to the customers. Thus logistics
plays important role in Supply Chain Mgmt.

Role of Logistics in the Economy


It is important since,

(i) It is important expenditure of businesses.


(ii) It supports movement and flow of many economic transactions.

Logistics adds value by creating time utility and place utility. Mainly it supports the time and
place utility. Time utility is the value added by having an item when it is needed, whereas
place utility is having the item or services available where it is needed.

Role of Logistics in the Organisation

In recent years, effective logistics management has been recognised as a key opportunity for
the improvement of both the profitability and competitiveness of the organisations. Because
of the importance of customer service, many organisations are adopting it and are making
their approach as customer driven

There is a strong relationship between Logistics and the three critical concepts of marketing
i.e. the Customer Satisfaction, Integrated Effort an Adequate Corporate Profit.

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A Study on Customer satisfaction towards VRL logistics, Hubli

1.8 Importance of Logistics

Logistics is the one important function in the business today. No marketing, manufacturing or
project execution can succeed without logistics support. For companies, 10 percent to 35
percent of gross sales are logistics cost, depending on the business, geography and
weight/value ratio.

Logistics is comparatively a new term, but not the operation. Logistics has existed since the
beginning of civilisation. Raw material and finished products had always to be moved,
through on a small scale. Things began changing with the advance in transportation.
Population began moving from rural to urban areas and to business centres. No longer did
people live near production centres, nor did production take place near residence centres. The
geographical distance between the production point and consumption point increased. And
logistics gained importance. Another factor has come into play recently. Since the early
1990’s, the business scene has changed. The globalisation, the free market and the
competition has required that the customer gets the fight material, at the right time, at the
right point and in the right condition....at the lowest cost.

1. Logistics is the bed rock of trade and business, without selling and or buying there can be
no trade and business. Buying and or selling takes place only when goods are physically
moved into and or away from the market. Take away logistical support trade and business
will collapse. Leads to customer satisfaction through superior customer service.
Organisational objectives of P [Productivity], Q [Quality], C [Cost], D [Delivery],E
[Employee Morale], F [Flexibility], S [Safety], H [Health], E [Environment] are set to
meet customer expectations of P,Q,C,D,E,F,S,H,E are parts of must be quality that a
customer expects. Logistics addresses D, F objectives which lead to satisfaction through
superior customer service.

2. Integrates logistical activities in a conventional management environment, various


activities of logistics work is isolation under different management functions. Each
pocket trying to sub optimizes its objectives at the cost of overall organizational
objectives. Purchasing trying to purchase at minimum price at the cost of what is needed

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by operations. Operations produce large quantities at minimum production cost ignoring


demand leading to doom inventory. Logistics function of management brings all such
functions under one umbrella pulling down inter departmental barriers.

3. Competitive edge: In the fiercely competitive environment logistics provides the edge.
Due to technological revolution most of the products are moving into commodity
markets. In a commodity market where price is controlled by competition, where there is
no product differentiation in terms of quality parameters like performance & reliability,
where brands are almost irrelevant, competitive edge is that of availability of product and
service in terms of time, place and quantity.

4. Logistics wins or loses wars; British lost American of Independence due to poor logistic
Rommel was beaten in the desert by superior logistics of Allies.

Supports critical functions like operation and marketing strong logistics support enables a
company to move towards JUST IN TIME production system for survival in a highly
competitive market.

1.9 Importance of Logistics Management in India

 Liberalisation and opening our door to door competition.


 Global business has long supply &distribution lines.

 Changing Indian customer, aware, demanding and less brand loyal.

 Competition ensures that product differentiation in terms of quality is difficult.

 Product life cycles are shrinking.

 Our markets are shifting from ‘sellers to buyers’.

 Many consumer products are moving into commodities market.

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A Study on Customer satisfaction towards VRL logistics, Hubli

 India is a large country. Large distances separate production and consumption centres.
Essential commodities have to travel from Food Corporation warehouses to consumers
through PDS.

 Logistics performance has not been impressive.

 Fruits and vegetables are grown at various places but do not enjoy access to market.

2.1 A Brief Introduction To The Subject Background

Logistics

A wide spread idea prevails that logistics is movement of goods. That is a narrow concept.
Logistics is much more & much wider and mere physical handling of goods. Logistics
involves several other functions such as purchasing plant location, plant layout, etc. And even
the disposable of wastes. It covers astonishingly varied professional disciplines. They are:-

 Facility location.
 Planning.
 Forecasting and order management.
 Transportation: the mode & the route.
 Inventory Management: all inventories.
 Warehousing.
 Protective Packaging.
 Information ; Maintenance & flow

Definition

The process of strategically managing the procurement, movement and storage of material,
parts and finished inventory (and related information flows) through the organisation and its
marketing channels in such a way that current and future profitability are maximised through
the cost effective fulfilment of orders.

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A Study on Customer satisfaction towards VRL logistics, Hubli

2.2 Statement of Problem

Logistics occupy an integral role in the marketing of a product good logistics ensure the
quality of the product is safeguarded and the product is delivered at the right time, right place
and to the target customers.

This project is undertaken to study the importance of logistics as a part of marketing strategy
and to find out the competitors services that are having a greater percentage of profit in the
market, in which VRL Logistics is going to give the good services and aim to know their
strategies so that the company can target on those concerned areas and can acquire a greater
market in the field of logistics management.

2.3 Objective of The Study

1. To understand customer preferences.


2. To study the relationship between the customer & transporter and the factors of
perception.

3. To identify the problems if any in the field of customer satisfaction in the logistics
sector and to come out with solution for the problem.

4. To give feasible suggestion to the company about the improvement in quality of


services.

2.4 Scope of The Study

 This study is restricted to the logistics services offered by VRL services & the time
period of the study is between Feb to May.

 The study provides the impact of the level of logistics service in the market.

 The project determines the trade and logistics management facility.

 The project deals with measurement of service, and links with internal
performance appraisal and improvement process of trade industry.

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A Study on Customer satisfaction towards VRL logistics, Hubli

2.5 Research Methodology

Surveys

Sources of Data

1. Primary Data
2. Secondary Data

Primary Data

The Primary data is collected through questionnaires administered to a sample of 100


customers selected from Bangalore city, the questionnaire before it was administered.
Secondary Data

Secondary data was collected through various publications of newspapers, annual reports,
websites, and magazines.

2.6 Sample Design

A total of 100 customers were selected from the Bangalore city for this study to analyze the
customer satisfaction with reference to VRL Logistics Ltd.

2.7 Tools& Techniques For Collection Of Data

Empirical field studies require collection of first hand information on data pertaining to the
unit of study from the field.

The sampling plan is effective in getting the first hand information i.e. primary data, which
has been required for the study by the research.

2.8 Plan of Analysis

The information gathered was tabulated and various graphs are prepared to analyze.

2.9 Limitation

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A Study on Customer satisfaction towards VRL logistics, Hubli

 The study confined to Bangalore and may not be relevant to other counter parts.
 Since only 100 samples were taken for study the generalization made for the entire
population may not be true.
 The study is targeted to the small business and so acceptance of VRL services by
corporate and individuals have not been covered under the study, because they form
major source of revenue for VRL.

2.10 An Overview of Chapter Scheme

Chapter I:

This deals with the general introduction and theoretical background of the study.

Chapter II:
This chapter gives the description of a brief introduction to the chapter scheme, statement of
the problem, objective of the study, research methodology, sample design, tool and
techniques for collection of data, plan of analysis, limitations and overview of report.

Chapter III:
This chapter contains the company profile, business products on services, competitions,
capital structure of organisation structure of the company.

Chapter IV:
This chapter includes classification & tabulation of data, analysis and interpretation of data.

Chapter V:
This chapter includes findings, conclusions & suggestions.

3.1History of the Company

Founded in 1976 by Mr. Vijay Sankeshwar in Gadag, a small town in North Karnataka with a
single truck and a vision that was way ahead of its time. VRL soon expanded its service to

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Bangalore, Hubli and Belgaum. From this humble beginning VRL has grown into a
nationally renowned logistics and transport company which is currently the largest fleet
owner in India with a fleet of 2691 Vehicles (Including 196 hi-tech tourist buses &2495
Trucks) as of 15th August 2008.as published in the Limca Book of Records.

Over the years VRL has pioneered in providing a safe and reliable delivery network in the
field of parcel service. It has spread its operations to Courier Service, Express Cargo &
Aviation to meet the growing demand of the burgeoning customer base.

3PL & Warehousing solutions offered by VRL are tailor-made and cater to unique needs of
various customers of the industry. With the largest network in India, the VRL parcel service
is indispensable for large number of corporate houses. This network spans the length and
breadth of the country and is supported by large number of transhipment hubs. VRL operates
through a network of 2629 Locations & 911 Branches, franchisees and our valuable
customers. VRL is now expanding its service to reach even the remote locations of the
Country.

The efficiency of our fleet of vehicles hinges on our all inclusive state-of-the-art workshop
cum service complex at Hubli (Karnataka). Every vehicle of our fleet passes through this
master service facility so that they are at peak levels of performance, leading to better cost
efficiencies and time management.

Centralised Operations

At the core of the groups transport business is its 43 acre transport cum warehouse complex
in Varur, Hubli. This unique facility has all the essential back up services under one roof. The
total built up area of complex is 25,00,000 sq. ft. with an additional 1,00,000 sq. ft. of land
utilized for sheds and vehicle parking, This complex contains the Head office Building,
Transhipment Godown, Workshop, Canteen, Drivers Rest Room, own Diesel Bunk etc.

Corporate Social Responsibility

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The corporate integrity is a critical asset and vrl is committed to upholding it in everything to
do.VRL share our expectations and opinions and strive to maintain a workplace built on
mutual values, trust and goodwill & we continue to embed these ethical standards in our
business environment. Noteworthy is the VignyanYogShivir that we organized that was
conducted by ParamPujyaRamdevjiMaharaj which was attended by more than 10,000 people
across the state.

Mission

To provide the highest quality service to our customers by continuously increasing cost
efficiency and maintaining delivery deadlines. To encourage our employees / workforce to
strive for quality & excellence in everything they do. To promote team work and create a
work environment that takes care of talent and brings out the best in our employees.

Vision

To become the premier company that cuts across various segments and emerges as the
torchbearer of each segment that the Group ventures into.

Objectives Of The Organisation

 To gain all around views of management operations


 To understand the work culture
 To integrate practical experiment with theoretical concept
 To assimilate and understand the function of each department in the organisation
 To develop necessary interpersonal and managerial skill

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Business Ethics

VRL has very strongly believe that “rules are not meant to be broken” but “rules are meant to be
followed”. This belief of ours strengthens our commitment to offer services that put our
clients and us in a “win-win” situation. We believe, it is better to be “Fair” than to be
“Good”.

3.2 Business Product& Services

VrlExpress Cargo

“Anywhere Anytime”
Delivery on time zero excuses. This mantra is driving force behind the success of VRL
Express Cargo.

 Surface, Train & Cargo mode services.

 Dedicated company owned vehicles.

 Door pick-up and delivery.

 On-time delivery.

 Online track & trace facility.

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 24X365 days operations.

 Dedicated and well-groomed customer care windows.

 Extensive nation-wide network.

Vrl Courier Service


“On Time Every Time”
Capitalising on the synergy of our transport network that connects all over Karnataka, we are
into Courier Services focusing on delivering documents and small parcels in a time bound
manner.

 Strong & Dedicated Operating Team.

 Time Bound Delivery With An Emphasis “On Time Every Time”

 Delivery Schedules ranging From 24/48/72/96 hours.

 Dedicated Route Vehicles.

 Online Track and Trace Facility.

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Warehousing & 3pl Solutions


“Tailor-Made Multi-Locational Service”
Seamless logistics solutions organisation encompassing various components like supply
chain management, inventory control management, warehousing management, JIT movement
with an emphasis on CRM.

 Integrated 3pl solution.


 Inventory Management.
 Warehousing facility at various locations.
 Communication & IT service.
 Intra-city & re-distribution services.
 SKU management.
 Vendor management.
 Order management.

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Vijayanand Travels
“At the forefront of passenger Transport”

 200Plus routes covering more than 50 destinations everyday.


 Market leader in Karnataka in private tourist operator segment.
 Areas of Operation : Karnataka &Maharastra states with 60-plus branches and wide-
spread network of 1000-plus agents.
 Vijayanand Travels is the premier operator to extend service by hi-tech & sleeper
coaches even to remote places.
 Onwards & return journey booking facility.
 Punctuality in timing and separate seating arrangement for ladies.
 Well-maintained coaches with latest seating arrangement.
 Double drivers on-board for safe & comfortable journey.
 Relief bus facility on all routes in case of any unforeseen incidents.

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Vijayanand Travels, the tour operation division of VRL, is the market leader among tourist
bus operators in Karnataka and Maharastra. It operates a huge fleet of buses on more than
200 routes and is supported by a network of 60 branches and 1000 agents. It has pioneered
the introduction of Hi-Tech buses on routes leading to remote parts of Karnataka, separate
seating arrangements for women on board, a choice of buses from ordinary buses to super
luxury A/C buses, check point to monitor vehicle movement, two drivers on the buses to
prevent driver fatigue on long routes and enhance passenger safety and E-ticketing facility
too.

Online Ticket Booking

VRL Online Ticket booking is Secured Fast And easy way to reach your
destination.

Please check your exact Bus schedule & Fare for your date/place of travel.

Please refer to terms & conditions for further details on bookings.

The lowest price does not always mean the best deal.

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Vrl Aviation

From the taemac to the skies.....VRL has set off a new journey. In the primary phase, VRL
has acquired a brand new, Premier Jet 1A aircraft, manufactured by Hawker Beechcraft
Corporation, USA. It will offer luxurious comfort and the freedom to fly at a whim. This
coupled with the legendary VRL lineage, this venture will certainly touch the skies.

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Non- Conventional Energy

A wind farm, when installed on agricultural land, has one of the lowest environmental
impacts of all energy sources:

 Wind power occupies less land area per kilowatt-hour (kWh) of electricity generated
than any other energy conversion system, apart from rooftop solar energy, and is
compatible with grazing and crops.
 It generates the energy used in its construction in just 3 months of operation, yet its
operational lifetime is 20–25 years.

 Greenhouse gas emissions and air pollution produced by its construction are low and
declining. There are no emissions or pollution produced by its operation.

 In substituting for base-load coal power, wind power produces a net decrease in
greenhouse gas emissions and air pollution, and a net increase in biodiversity.

 Modern wind turbines are almost silent and rotate so slowly (in terms of revolutions
per minute) that they are rarely a hazard to birds.

The journey over the last three decades was challenging and have become more innovative.
The Wind Energy project of 42.5 M.W. has been successfully commissioned.

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Financial Services
Fixed Deposits
Inviting Fixed Deposits From Public with an
Attractive rate of Interest at !!!

14.19%*
SCHEME-A : NON CUMULATIVE DEPOSITS
INTEREST PAYABLE QUARTERLY
Money...
PERIOD MINIMUM AMOUNT RATE OF INTEREST INTEREST
(Rs.) (p.a.) PAYABLE

1 YEAR 10,000 11.00% Quarterly

2 YEARS 10,000 11.50% Quarterly

3 YEARS 10,000 12.00% Quarterly

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SCHEME-B : CUMULATIVE DEPOSITS


INTEREST COMPOUNDED QUARTERLY

PERIOD MINIMUM RATEOFINTEREST MATURITY EFFECTIVE


AMOUNT (Rs.) (p.a.) VALUE YIELD
(Rs.) (p.a.)

1 YEAR 10,000 11.00% 11146 11.46%

2 YEARS 10,000 11.50% 12545 12.73%

3 YEARS 10,000 12.00% 14258 14.19%

 Interest and maturity value payments are subject to deduction of tax at source,
wherever applicable.

 Deposits are accepted from Individuals, minors (through natural Guardians), HUFs,
Association of Persons, Registered, Societies and Registered Trusts.

 Interest on fixed deposits will commence from the date of realisation of


cheque/demand draft by the Company.

 0.5% per Annam additional interest for Senior Citizen/Shareholders/Employees.

 Additional amount of deposits will be accepted in multiples of Rs. 1000/- only.

Cheques / Demand Drafts can be deposited at designated branches all over India.

Maturity value is calculated without considering any deduction of tax at source. Interest will
be compounded on quarterly basis after deducting Income Tax, wherever applicable.

3.3 Competitors

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The Vijayanand Travels is facing stiff competition from following players

 KSRTC (competitor for throughout Karnataka state)


 Sharma travels (competitor for throughout Maharashtra state)
 Diwakar travels (competitor for only Davanagere route)
 KPN travels (competitor for only Maharashtra state)
 Seagate travels (competitor for all routes)
 Blue line travels (competitor for all routes)

3.4 Board Of Directors

Board Of Directors Of Vijayanand Travels

 MR. VIJAY SANKESHWAR Chairman of Vijayanand travels

and Managing director business.

MR.ANAND SANKESHWAR Managing director,

Vijayanand travels

MR.R.P.RAICHUR Executive director service,

Vijayanand travels.

MR.SUDHIR GHATE Independent director

Business,

Vijayanand travels.

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MR.C.KARUNAKARA SHETTY Independent director

Business,

Vijayanand travels.

MR.MALLESH BUDIHAL Independent director

Business,

Vijayanand travels.

MR.R.S.SAGAR Independent director

Business,

Vijayanand travels.

MR.SURESH ANGADA Independent director

Business,

Vijayanand travels.

MR.H.K. VEERABADHRAPPA Independent director

Business,

Vijayanand travels.

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3.5 Capital Turnover

Balance sheet Of The Company Vijayanand Travels

Balance sheet of the company Vijayanand travels as on year ending


31st March, 2008

PARTICULARS Six months Year ended


ended march 31st,
September 2008
30th, 2008
1 FIXED ASSETS

Gross block 59767.39 55988.83

Less: depreciation 10595.21 8852.55

Net block 449172.18 47136.28

Less: revaluation reserve _ _

Net block after 49172.18 47136.28


adjustment for
revaluation reserve

Capital WIP 1857.60

NET FIXED ASSETS 51029.78 48425.60

2 INVESTMENTS 11.11 7.87

3 CURRENT ASSETS
LOAN & ADVANCES

inventoty 999.50 960.29

Sundry debtors 4033.21 2371.32

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Cash and bank balances 2415.65 1515.85

Loans and advances 3578.91 3829.98

TOTAL 11027.27 8677.44

4 LESS:LIABILITIES
AND PROVISION

Secured loans 42237.33 39042.20

Unsecured loans _ _

Current liabilities 3106.56 2802.67

Provisions 321.46 280.43

Deferred tax 5985.82 5500.55


liability(net)

TOTAL 51651.17 47625.85

5 NET 10416.99 9485.06


WORTH(1+2+3+4)

Net worth represented


by:

6 Equity share capital 7070.00 7000.00

7 Share application money _ 700.00

8 Reserves and surplus

General reserve 1150.00 1150.00

Share premium 630.00

Profit and loss account 1566.99 635.06

TOTAL 3346.99 1785.06

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A Study on Customer satisfaction towards VRL logistics, Hubli

Less revaluation reserve _ _

Reserve(net of 3346.99 1785.06


revaluation
reserves)

9 Net worth(6+7+8) 10416.99 9485.06

3.6 Swot Analysis

After the keen observation over the organizations and the various departments of Vijayanand
travels the following strengths, weakness, opportunities & threats are found.

STRENGTHS:

1. The various strengths that made the company to increase the market share are as follows.

2. The company is having the very good brand image in customers mind.

3. It is maintaining very good service in the form of providing adequate bus facility with pre
determined time schedules.

4. The company is having a very Effective internal management system.

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A Study on Customer satisfaction towards VRL logistics, Hubli

5. Employees, as well as customer’s suggestions are considered with special care, this made
the company to get loyal customers as well as employees.

6. It is having the more network branches compared to the other competitors.

7. It is having the more pick-up points compared to the other competitors.

8. It maintains competitive pricing. Because of this advantage it is charging 10% less than
the charges of KSRTC. This made the increase in consumer awareness regarding services
of the company.

WEAKNESS:

From the analysis of performance of Vijayanand travels we found following weakness:

1. Delay In Departure

Some of the buses of Vijayanand travels are not departure at scheduled timings. There may
be delays in timings that cause lot of inconvenience to the passengers.

2. Insufficient Sleeper Coaches In Buses

Only few buses are having sufficient sleeper coach facilities as all the buses.

3. Very Limited Staff

Vijayanand travels is having very limited staff, because of which, the staff is overburdened
with work.

4. Less Commission Structure

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A Study on Customer satisfaction towards VRL logistics, Hubli

The commission structure of the agents is less when compared to that paid by other
competitors.

5. Low
Advertisements Compared to competitor’s advertisements.

OPPORTUNITIES:

The company is having following opportunities in the market, they are:

1. Extending The Service


Extending the service to other states like Goa and Kerala.

2. Introduction Of More Volvo Buses


Because of less competition in market the company is able to introduce more Volvo buses in
its product profile.

3. Consumer Awareness
Consumer awareness over the services of ‘VRL’ brand has been increasing over the years.

4. The existing infrastructure can be utilized for a larger capacity

5. Diversification towards Aviation sector and doing business, acquiring or renting aircraft.

6. Apart from Aviation sector they are aiming to step into garments, dairy, and steel
business.

7. Company officials have been studying locations across the country for identifying various
investment destinations.

THREATS:

1. Unethical marketing practices of private brands.

2. Competitors higher commission rates.

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A Study on Customer satisfaction towards VRL logistics, Hubli

3. A rise in fuel prices would adversely affect their operations and profitability.

4. Their goods and passenger transport business are subject to various taxes, which may

Significantly affect their profit.

3.7 ORGANISATION STRUCTURE

CHAIRMAN

MANAGING
DIRECTOR

GM (MIS) GM (HRM) GM GM GM (IT)


(MARKETING) (FINANCE)

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

ROADLINES TRAVELS COURIER MPC

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #1

How did you come to know about V.R.L Logistics

Basis No. of Respondents %

TV 2 2

Newspaper 5 5

Magazine 8 8

Word of Mouth 65 65

Others 20 20

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that , 65% of the respondents say they got to know about
VRL logistics through word of mouth, 20% of them got to know through others, 5% through
newspaper , 8% through magazine and 2% through TV.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #1

How did you come to know about V.R.L Logistics

70%
65%

60%

50%

40%

30%

20%
20%

10% 8%
5%
2%
0%
TV Newspaper Magazine Word of Mouth Others

INFERENCE:
From the above graph, it is inferred that majority of the respondents said that they came to
know VRL through word of mouth. Therefore the advertisement costs are minimal.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #2

For how long you have been using V.R.L services

Basis No. of Respondents %

0-6 months 5 5

1-2 years 14 14

2-3 years 25 25

3 yrs and above 56 56

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that , 56% of the respondents say they have been using
VRL services more than 3 years, 25% of them are using it from 2-3 years, 14% of them are
using it from 1-2 years and 5% from 0-6 months.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #2

For how long you have been using V.R.L services

Sales

56%

5%

14%

25%

0-6 months 1-2 years 2-3 years 3 yrs and above

INFERENCE:
From the above graph, it is inferred that more than 50% of the customers have been loyal to
the company for more than 3 years. This speaks high about the good quality of service
provided.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #3

What made you use V.R.L services

Basis No. of Respondents %

Cost 12 12

Time 8 8

Quality 7 7

Service 72 72

Packaging 1 1

Others 0 0

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 72% use it for its services, 12% of the respondents
use VRL services for its cost, 8% use it for its time, 7% use it for the quality and 1% for its
packaging.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #3

What made you use V.R.L services

80% 72%

70%

60%

50%

40%

30%

20% 12%
8% 7%
10% 1% 0%
0%
Cost Time Quality Service Packaging

INFERENCE:
From the above graph, it is inferred that most of the respondents use the VRL services for the
services provided by them.

Hence the services provided by VRL are very well enriched.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #4

How often do you transport your goods

Basis No. of Respondents %

Everyday 10 10

2-3 days 32 32

Weekly 39 39

Fortnight 15 15

Monthly 4 4

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 39% of the respondents transport their goods
weekly, 32% transport it 2-3 days, 15% transport it every fortnight, 10% of them transport it
every day & 4% of them transport it monthly once.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #4

How often do you transport your goods

15% 4%
10%

32%
39%

Everyday 2-3 days Weekly Fortnight Monthly

INFERENCE:
From the above graph, it is inferred that majority of the customers use the services weekly.
This means they often make use of VRL services.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #5

How was the delivery schedule of the vehicle kept up

Basis No. of Respondents %

On time 64 64

Before time 19 19

After time 10 10

Very late 7 7

TOTAL 100 100

ANALYSIS:

From the above table it is analysed that, 64% percent of the respondents say that the delivery
of goods was on time, 19% say that the delivery was before time, 10% of the respondents say
that the delivery was after time and 7% say it was very late from the schedule delivery.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #5

How was the delivery schedule of the vehicle kept Up

Very late
7%

After time
10%

Before time
19%

On time
64%

0% 10% 20% 30% 40% 50% 60% 70%

INFERENCE:
From the above graph, it is inferred that the delivery was often before time and at time to the
schedule delivery which denotes a good remarks. Hence it is clear that there is little area of
improvement.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #6

How would you rate VRL Logistics in terms of Price

Basis No. of Respondents %

Excellent 39 39

Average 32 32

Good 19 19

Poor 10 10

TOTAL 100 100

ANALYSIS;
From the above table it is analysed that,39% of the respondents rated the pricing as excellent,
32% respondents were average, 19% of the very respondents quoted as the pricing style to be
good and the rest 10% stated as the price to be poor.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #6

How would you rate VRL Logistics in terms of Price

39%
40%

35% 32%

30%

25%

19%
20%

15%
10%
10%

5%

0%
Excellent Average Good Poor

Series 1

INFERENCE:
From the above graph, it is inferred that quite a majority of the customers were satisfied with
pricing strategy offered by VRL.

Hence it can be said that the service provided in respect of price is satisfactory.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #7

How would you rate VRL Logistics in terms of Staff

Basis No. of Respondents %

Excellent 29 39

Average 32 32

Good 29 19

Poor 10 10

TOTAL 100 100

ANALYSIS;
From the above table it is analysed that, 32% of the staff were co-operative towards the
customer, 29% as good and 29% rating as excellent was given by the respondents & 10% of
the respondents said there was improvement to be made in them.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #7

How would you rate VRL Logistics in terms of Staff

35% 32%
29% 29%
30%

25%

20%

15%
10%
10%

5%

0%
Excellent Average Good Poor

INFERENCE:
From the above graph, it is inferred that the quality of the behaviour was average and there
was an equal response as excellent and good. Hence in an overall it can be said there is a little
to improve in behavioural aspects.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #8

How would you rate V.R.L Logistics in terms of Service

Basis No. of Respondents %

Excellent 69 69

Good 21 21

Average 6 6

Poor 4 4

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 69% of the respondents say that the service of VRL
are excellent, 21% say it is good, 6% were average respondents and 4% respondents say it is
poor.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #8

How would you rate V.R.L Logistics in terms of Service

69%
70%

60%

50%

40%

30%
21%
20%

10% 6%
4%

0%
Excellent Good Average Poor

INFERENCE:
From the above graph, it is inferred that 91% of the respondents say that the services of VRL
are excellent & good. So the services provided by VRL are very good and the customers
make use of VRL for its services.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #9

How would you rate V.R.L Logistics in terms of Packaging

Basis No. of Respondents %

Excellent 9 9

Good 86 86

Average 5 5

Poor 0 0

TOTAL 100 100

ANALYSIS:

From the above table it is analysed that, 90% of them think it is excellent,86% of the
respondents think that the packaging of VRL is good and & 5% think it is average.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #9

How would you rate V.R.L Logistics in terms of Packaging

86%

Excellent
Good
Average
Poor
9% 5%

0%

INFERENCE:
From the above graph, it is inferred that most of the respondents think that the packaging is
very good. Therefore the packaging of the goods is given a lot of importance at VRL.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #10

How would you rate V.R.L Logistics in terms of Handling of Goods

Basis No. of Respondents %

Excellent 36 36

Good 64 64

Average 0 0

Poor 0 0

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 64% of the respondents say that the handling of
goods is good and 36% of them say it is excellent.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #10

How would you rate V.R.L Logistics in terms of Handling of Goods

70
64

60

50

40 36

30

20

10
0 0
0
Excellent Good Average Poor

INFERENCE:
From the above graph, it is inferred that the handling of the goods by VRL seems to be very
good as of all the respondents say it’s good & excellent. VRL seems to take the utmost care
of the goods.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #11

How would you rate V.R.L Logistics in terms of Vehicle Condition

Basis No. of Respondents %

Excellent 23 23

Good 69 69

Average 8 8

Poor 0 0

TOTAL 100 100

ANALYSIS:

From the above table it is analysed that, 69% of the respondents say that the vehicle condition
of VRL is good, 23% of the respondents say its excellent & 8% say it is average.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #11

How would you rate V.R.L Logistics in terms of Vehicle Condition

69
70

60

50

40

30 23

20

10 Series 3
8
0 Series 2
0
Excellent Series 1
Good
Average
Poor

INFERENCE:
From the above graph, it is inferred that more than 50% of the respondents think that the
vehicle condition is good, therefore the maintenance of the vehicle by VRL seems to be very
good.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #12

How would you rate V.R.L Logistics in terms of Branch and Warehouse

Basis No. of Respondents %

Excellent 76 76

Good 24 24

Average 0 0

Poor 0 0

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 76% of the respondents say that the branches and
warehouses of VRL are excellent & 24% say they are good.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #12

How would you rate V.R.L Logistics in terms of Branch and Warehouse

Poor 0

Average 0

Good 24

Excellent 76

0 10 20 30 40 50 60 70 80

INFERENCE:
From the above graph, it is inferred that it has excellent branches and warehouses which
satisfies their customers a lot. The branches and warehouses are well maintained.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #13

Are you informed about the breakdown of the Vehicle

Basis No. Of Respondents %


Immediately
21 21
After sometime
32 32
Very late
17 17
Never informed
30 30

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 32% of the respondents say that they are informed
about the breakdowns, 30% say they are informed after sometime, 21% say they are informed
immediately and 10% say they are informed very late.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #13

Are you informed about the breakdown of the Vehicle

4.5
4.5 4.3

4
3.5
3.5

3
2.5
2.5

1.5

0.5

0
Category 1 Category 2 Category 3 Category 4

INFERENCE:
From the above graph, it is inferred that the breakdown are informed to the customers quite
late, there must be well connected communication with the customers.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #14

How close was the branches, warehouse, booking points and delivery spots
from your place

Basis No. Of Respondents %


Near
43 43
Close by
55 55
Far
2 2
Very Far
0 0

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 55% of the respondents say that the branches,
warehouses, booking points and delivery spots were close by, 43% say near and 2% say they
are far.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #14

How close was the branches, warehouse, booking points and delivery spots
from your place

43

Near

55 Close by
Far
Very Far

INFERENCE:
From the above graph, it is inferred that the VRL branches are close to customer’s place of
work. This ensures easy accessibility to the customers to the services of VRL.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #15

What do you feel about the distribution system of VRL

Basis No. Of Respondents %

Strongly satisfied 21 21

Neither satisfied nor dissatisfied 42 42

Satisfied 33 33

Dissatisfied 4 4

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 42% of the respondents said that they were neither
satisfied nor dissatisfied, 33% were satisfied with VRL, 21% respondents are strongly
satisfied and 4% dissatisfied at the VRL distribution system.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #15

What do you feel about the distribution system of VRL

45 42

40
33
35

30

25 21
20

15

10
4
5

0
Strongly satisfied Neither satisfied Satisfied Dissatisfied
nor dissatisfied

INFERENCE:
From the above graph, it is inferred that there was a mixed view of respondents and from the
satisfaction level it is successfully interpreted that the VRL has achieved a average level of
customer satisfaction.

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A Study on Customer satisfaction towards VRL logistics, Hubli

TABLE #16

Do you expect any improvement in V.R.L Services

Basis No. Of Respondents %

Yes 57 57

No 43 43

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 57% of respondents wants improvement in the
services offered by VRL Logistics and 43% expects no improvement in the end service.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #16

Do you expect any improvement in V.R.L Services

60

50

40

30
57

20 43

10

0
No Yes

INFERENCE:
From the above graph, it is inferred that majority of the respondents wants improvement in
services and the remaining others are satisfied. Therefore it can be diagnosed that there are
improvement to made for V.R.L services to achieve customer satisfaction.

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TABLE #17

If yes, what improvement are you looking for

Basis No. Of Respondents %

Delivery of goods 27 27

No. of branches 2 2

Behaviour of the staff 1 1

Condition of the Vehicles 4 4

Others 15 15

TOTAL 100 100

ANALYSIS:
From the above table it is analysed that, 55% of the respondents need improvement in
delivery of the goods, 31% say others, 8% wants improvement in condition of vehicle, 4%
need in no. of branches and 2% in behaviour of the staff.

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A Study on Customer satisfaction towards VRL logistics, Hubli

GRAPH #17

If yes, what improvement are you looking for

30

25

20

15

10

0
Delivery of
goods No. of
branches Behaviour of
the staff Condition of
the Vehicles

INFERENCE:
From the above graph, it is inferred that the delivery of goods is not to satisfying to the
respondents and there are many other improvements the customers are looking for.

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A Study on Customer satisfaction towards VRL logistics, Hubli

5.1 FINDINGS

The findings of the study are as follows.

1. Vijayanand travels is service motive organization.

2. Some departments are not computerized but finance department is computerized.

3. Vijayanand travel maintains its day to day transaction on the books or records or kept
manually that influences its business activity.

4. Communication is made through phone and internet facility.

5. It is found that organisation values their employee’s opinion & ideas and shares their
information with their employer.

6. After the analysis of collected data it can be interpreted that the organisation’s culture is
shaped by internal factors.

5.2 SUGGESTIONS

Following suggestions should be taken into consideration in regarding to VRL Company…

 The company must improve its current service facilities.


 The company must introduce more new buses, as present buses are not so much
technologically advanced.
 The company should introduce its services in new routes also.
 To retain the employees by providing them incentives as to motivate and encourage
for their contribution.
 A proper blend of quality, time of work as well as inter-personal relationships should
account for the appraisal system as each one of them is equally important.

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A Study on Customer satisfaction towards VRL logistics, Hubli

5.3 CONCLUSION

Based on the overall study of the company the financial position of the company is sound.
Vijayanand travels is one of the nationally renowned and transport company in south India.
The company is having the very good brand image in the customers mind. And it is
marketing its product under the brand name of “VRL”. The employees in Vijayanand travels
are hardworking and dedicated. The company has increasing profit and net worth .Thus,
company performed very nicely from its birth.

All the departments play a vital role in every organization. The overall study that emerges in
this firm has maintained well and efficient department in the management. It’s all sections are
working efficiently. The overall capacity of all the departments is well systematic.

In the course of study I have not only acquired theoretical knowledge and also practical
knowledge in this firm. I conclude that all the departments functions should have modern
techniques towards other departments.

5.4 LEARNING EXPERIENCE

An organization study at Vijayanand travels, as an in plant training during the MBA course of
Bangalore University has really enabled me to understand the organizational structure of the
corporate world to an extent and the ways and means how functions. As Vijayanand travels is
one of the leading industry in travel sector. This organization has a large investment and a
good number of people working in it. Here, is a well established organizational structure with
the top level management, middle level management, and the bottom level management.

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QUESTIONNAIRE

I would like to introduce myself as a BBA Student ASHISH S UMARANI of PES global

college. I am doing a project on topic “A Study on Customer Satisfaction with Reference to


VRL Logistics.” This project is to be submitted to the Karnataka University for the award of
Bachelor of Business Administration (BBA). Hence I request you to kindly spend a few
minutes in answering this:-

Name :
Age :
Sex :
Ph. No :
Address :
E-mail :

1. How did to come to know about V.R.L Logistics?

[ ] T.V [ ] Newspaper
[ ] Magazines [ ] Word of mouth
[ ] Others

2. From how long you have been using V.R.L Services?

[ ] 0-6 months [ ] 1-2 years


[ ] 2-3 years [ ] 3 years & above

3. What made you use V.R.L services?

[ ] Cost [ ] Time
[ ] Quality [ ] Service
[ ] Packaging [ ] Others

4. How often do you transport your goods by V.R.L?

[ ] Everyday [ ] 2-3 days

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A Study on Customer satisfaction towards VRL logistics, Hubli

[ ] Weekly [ ] Fortnight
[ ] Monthly

5. How was the delivery schedule of the vehicle kept up?

[ ] On time [ ] Before time


[ ] After time [ ] Very late

6. How would you rate VRL logistics in terms of : -

Sl. Basis Excellent Good Average Poor


No.
1. Price
2. Staff
3. Service
4. Packaging
5. Handling of
Goods
6. Vehicle
Condition
7. Branches &
Warehouse

7. Are you informed about the breakdown of the vehicle?

[ ] Immediately [ ] After sometime


[ ] Very late [ ] Never informed

8. How close was the branch, warehouses, booking points & delivery spots from your
place?

[ ] Near [ ] Close by
[ ] Far [ ] Very far

9. The details of the information provided to you were sufficient or not?

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A Study on Customer satisfaction towards VRL logistics, Hubli

[ ] All the information was provided.


[ ] Need some more information.
[ ] Not happy with the information.
[ ] Very less information was provided.

10. Do you expect any improvement in V.R.L services?

[ ] Yes [ ] No

11. If yes, what improvement are you looking for?

[ ] Delivery of good [ ] No. of branches


[ ] Behaviour of staff [ ] Condition Of vehicles
[ ]...............................
...............................

12. What do you feel about the distribution system of VRL?

[ ] Strongly satisfied [ ] Satisfied


[ ] Neither satisfied nor dissatisfied
[ ] Dissatisfied

13. State the service of VRL Logistics Pvt. Ltd.?

[ ] Excellent [ ] Good
[ ] Fair [ ] Poor

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A Study on Customer satisfaction towards VRL logistics, Hubli

BIBILOGRAPHY

BOOKS:
Marketing management
V.S.Ramaswamy

Third edition
Macmillan India ltd.
Business Research Methods
O.R Krishnaswami
B.G Satyaprasad
Third Edition
Himalaya Publication House

WEB SITES:
WWW.VRLLOGISTICS.COM
SCRIBD.COM
WIKIPEDIA.COM
GOOGLE.COM

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71

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