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A PROJECT REPORT ON To study the Customers Satisfaction towards MRF Tyres at Bagalkot

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A PROJECT REPORT ON  To study the Customers Satisfaction towards MRF Tyres at Bagalkot Powered By Docstoc
					CHAPTER I
                To study the Customers Satisfaction towards MRF Tyres




               INTRODUCTION




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                                      INTRODUCTION

The main object of every organization is to earn more profit, to achieve this object the

organization should increase its sales by getting more customer and the only way to get more

customer is that the organization should provide expected satisfaction to the customers.

Here the word customer satisfaction means “the utility which customer expect from the product”

and when a customer get expected utilities it is called as customer satisfaction.



MRF manufactures the largest range of tyres in India and enjoys the highest brand preference for

superior quality, company manufactures the largest range of tyres in India and is the market

leader with the largest market share it tyre industry.



Since 1984 MRF tyres has consistently been chosen as oem fitment by almost every major car

manufacturer in India apart from tyres MRF also manufacturer conveyor belts, pretreads and

advanced polyurethane paints.

Here every customer of MRF is getting satisfaction and it may analyzed by the following

information

      MRF own No. 1 award for customer satisfaction by J.D Power Asia pacific for

       2001&2002

      It is also created good brand name in other countries also, and it is the first Indian

       company to export tyres to the US, the very birthplace of tyre technology. It is the first

       company in India to manufacture and market Nylon tyres passenger tyres commercially.




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      MRF is providing huge number of products to the customer as per the requirement and

       need.

      They provide more warranties to the customers and it will shows that the company has

       confident on its product.



So as per the above information it found that the customer satisfaction towards MRF tyres is

good




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                    STATEMENT OF THE PROBLEMS:

Profit earning has become one of the important objectives of each and every company.



       It is very easy to attract new customers but retaining old customer is too difficulty only

the satisfied customer will remain loyal to the firm brands.



       A person enters a showroom when he wants to purchase tyres, but before purchasing

tyres he consults so many persons about tyre. Like about price, quality, service etc, and then he

make decision to purchase.

       If he finds any problem with tyres, he may change his positive attitude into negative

attitude towards tyres given by the showroom.



       Considering, all above points, I have decided “To study the Customers Satisfaction

towards MRF Tyres in Bagalkot”.




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                         OBJECTIVES OF THE STUDY:

       A customer is not dependent on us we are dependent on customer , this statement is basis

thing for every firm or service sector.



       Objectives are:



       1. To know the customer satisfaction towards MRF tyres in Bagalkot city.

       2. To know the attributes which creates customer satisfaction among MRF tyre users in

           Bagalkot .

       3. To know the satisfaction level of the customer with the MRF tyres.

       4. To know valuable suggestion form the customer.




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                               SCOPE & LIMITATIONS


SCOPE:
       The study is purely based on the survey conducted in Bagalkot city and has focused on
customers. The study covers the information about the mind set which may varies from situation
& where the respondents may not be able to give required and accurate information.


LIMITATIONS:


1.     Due to respondents busy schedules, the interests shown by respondents to answer the
       questionnaire may be less. This may have resulted in collecting inaccurate information.


2.     Due to time and cost constraint the sample size selected is 100.


3.     The selected sample size is small as compared to the total number of customers. Hence
       the obtained result may not be accurate as it may not represent the whole population.


4.     The project is open for further improvement of the work.




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            CHAPTER II




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                                     Literature Review

                                 Customer satisfaction

In a competitive marketplace where businesses compete for customers, customer satisfaction is
seen as a key differentiator and increasingly has become a key element of business strategy.

                                Measuring customer satisfaction


Organizations are increasingly interested in retaining existing customers while targeting non-
customers; measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction
can also vary depending on other options the customer may have and other products against
which the customer can compare the organization's products.

Because satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently been
developed. Work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten
'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and
known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality,
Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork,
Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are
emphasized for continuous improvement and organizational change measurement and are most
often utilized to develop the architecture for satisfaction measurement as an integrated model.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides
the basis for the measurement of customer satisfaction with a service by using the gap between
the customer's expectation of performance and their perceived experience of performance. This
provides the measurer with a satisfaction "gap" which is objective and quantitative in nature.
Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of
combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures
(perception and expectation of performance) into a single measurement of performance
according to expectation. According to Garbrand, customer satisfaction equals perception of
performance divided by expectation of performance.

The usual measures of customer satisfaction involve a survey with a set of statements using a
Likert Technique or scale. The customer is asked to evaluate each statement and in term of their
perception and expectation of performance of the organization being measured.

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                         Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of customer
satisfaction. The International Customer Service Institute (TICSI) has released The
International Customer Service Standard (TICSS). TICSS enables organizations to focus their
attention on delivering excellence in the management of customer service, whilst at the same
time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an
organization’s attention on delivering increased customer satisfaction by helping the organization
through a Service Quality Model.

TICSS Service Quality Model uses the 5 P's - Policy, Processes, and People, Premises,
Product/Services, as well as performance measurement. The implementation of a customer
service standard should lead to higher levels of customer satisfaction, which in turn influences
customer retention and customer loyalty.




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                INDUSTRY PROFILE




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                       INTRODUCTION OF MRF COMPANY

                      1946 - A year to remember… India was on the threshold of independence.

A young entrepreneur, K.M. Mammen Mappillai, opened a small manufacturing unit where

balloons, latex cast squeaking toys and industrial gloves were manufactured… little did he

realize then that the company he started would grow to become the no.1 tyre manufacturer in

India.

MRF established its first office in 1949 at Chennai, Tamil Nadu, and India. The company began

as a manufacturer of toy balloons and other rubber products and then later on moved to

manufacture tyres in 1961.

Today MRF is into a league of its own with:

         MRF manufactures the largest range of tyres in India and enjoys the highest brand

preference for superior quality, company manufactures the largest range of tyres in India and is

the market leader with the largest market share it tyre industry.

Since 1984 MRF tyres has consistently been chosen as oem fitment by almost every major car

manufacturer in India apart from tyres MRF also manufacturer conveyor belts, pretreads and

advanced polyurethane paints

The milestones achieved while being such a progressive and vibrant company, is also recognized

by the corporate world through a number of awards like.


Voted as one of the Indian most admired marketing companies by A & M leading advertising

and marketing and marketing journal.

No. 1 award for customer satisfaction by J.D Power Asia pacific for 2001&2002

Most ethical company in India by business world, a leading business magazine.




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                                       Industry Review




Indian Tyre Industry to Register a Growth of 9-10% in the Next 5 Years
       The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tones) garnering Rs.
19000 crores in FY07. MRF Ltd. was the market leader (22% market share) followed closely by
Apollo Tyres Ltd. (21%). The other major players were JK Tyre & Industries (18%) and Ceat
Ltd.(13%). The Indian tyre industry is characterized by its raw material intensity (raw material
costs account for approximately 70% of operating income), capital intensity, and cyclicality,
fierce competition among the top players, low bargaining power and resulting low margins. The
top players are now focusing on branding their products and strengthening their distribution
network so as to increase their market share.
       The industry derives its demand from the automobile Industry. While OEM market off
take is dependent on the new vehicle sales, replacement market demand depends on the total
population of vehicles on road, road conditions, vehicle scrapping rules, overloading norms for
trucks, average life of tyres and prevalence of tyre retreading.


       The main category of tyres produced in the country is that of Truck & Bus tyres. These
tyres accounted for 57% of the total tyre tonnage production in FY07 followed by LCV tyres
which accounted for 9% of the total tyre tonnage production. Approximately 53% of the total
tyre tonnage off take was by the replacement market, 31% by OEM and 15% by the export
market in FY07. The industry tonnage production registered a 5 year CAGR of 9.69% between
FY 02-07. The largest category of Truck & Bus tyres recorded a 5 year CAGR of 7.85% (slower


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than the industry) while Light Commercial Vehicle (LCV), motorcycle and car tyre categories
grew at 15%, 16% and 14% respectively (faster than the industry). Off the road (OTR) tyre
category (customized tyres) which fetch a higher margin compared to other tyre categories, is the
fastest growing category.
       The OTR tyre category has registered a 5 year CAGR of over 20% in the last five years.
Most of the top players are increasing their capacity for the production of OTR tyres so as to
improve their product mix, this being a high margin product.
       The exports from the country clocked a CAGR of 13% in unit terms and 18% in value
terms in the period FY 02-07. Most of these tyres that are exported are of cross ply design. With
radicalization catching up in some of these markets, the Indian manufacturers will need to
graduate to production and export of radial tyres so as to protect their share in the export market.
Radicalization of tyres is still minimal in India.
        Only the car tyre market has moved to radial tyres (95%) but in all other categories,
cross ply tyres are still preferred. Poor road conditions, overloading in trucks, higher cost of
radial tyres and poor awareness of the tyre users are the main reasons for the non transition of the
domestic market to radial tyres. However, going ahead radicalization in truck & bus tyres may
increase due to government’s focus on infrastructure development.




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CARE Research projects the Indian Tyre Industry to register a growth of 9-
10% in the next five years
The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tones) garnering Rs. 19,000
crores in FY 07. MRF Ltd. was the market leader (22% market share) followed closely by
Apollo Tyres Ltd. (21%). The other major players were JK Tyre & Industries Ltd (18%) and
Ceat Ltd. (13%). The industry tonnage production registered a 5 year CAGR of 9.69% between
FY 02-07¬.
Truck & Bus tyre category (accounting for 57% of the tonnage production) recorded a 5 year
CAGR of 7.85% (a rate slower than that of the industry) while Light Commercial Vehicle
(LCV), Motorcycle and Car tyre categories grew at 15%, 16% and 14% respectively (at rates
faster than that of the industry). Off the road (OTR) tyres (customized tyres which fetch a higher
margin compared to other tyres) category is growing at a fast pace. The OTR tyre category
registered a 5 year CAGR of over 20% in the last five years. Most of the top players are
increasing their capacity for the production of OTR tyres so as to improve their product mix, for
e.g. CEAT Ltd. is increasing its OTR capacity at its Nasik plant from 60,000 to 1,00,000 tyres by
end 2008, JK Tyre & Industries is expanding its OTR capacity from 25,000 tyres to 42,000 tyres
by end 2008, even smaller player like Falcon tyres is making its foray into the OTR category.
The exports from the country clocked a CAGR of 13% in unit terms and 18% in value terms in
the period FY 02¬07. Most of these tyres that are exported are of cross ply design. With
radicalization catching up in some of these markets, the manufacturers will need to graduate to
radial tyres so as to protect their share in the export market. Radicalization of tyres is still
minimal in India. Only the car tyre market has moved to radial tyres (95%) but in all other
categories cross ply tyres are still preferred. Poor road conditions, overloading in trucks, higher
initial cost of radial tyres and poor awareness levels in tyre users are the main reasons for the non
transition of the domestic market to radial tyres. However, going ahead, radicalization in truck &
bus tyres may increase due to government’s focus on infrastructure development.
CARE Research expects the tyre industry to register a tonnage growth of 9¬10% in the next five
years (FY 07¬12). The truck & bus and LCV tyre category are expected to register a CAGR of
8% and 14% respectively (FY 07¬12).




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                                 MARKET PLAYERS

Indian               %              International            %
MRF                  22.00%         Michelin                 20.01%

Apollo               20.00%         Brighestone              18.04%

JK Tyres             19.00%         Goodyear                 16.09%

Ceat                 16.00%
Birla                7.00%
Goodyear             6.00%

                                      Birla Tyres
Registered Office           Shivam Chambers 53,
                            Syed Amir Ali Avenue, Kolkata,
                            West Bengal-700019.

Phone                       +91-33-22814516

Primary Industry            Tyre Manufacturers
Total Employees             30
Business Summary
Birla Tyres entered the Indian tyre market in 1991. The manufacturing facilities are located
at Balasore in Orissa. In ten years of operation, it has scaled new heights of productivity.
The initial capacity of 1 million tyres per annum has since been enhanced to 1.5 million
tyres per annum. The new millennium saw it roll out high performance Steel Belted Car and
L.C.V. radials, using state-of-the-art machines with the latest technology from the world
famous Pirelli of Italy. The continuous quest for excellence saw the Birla Tyres team add
many feathers to its cap. It has received ISO 9001, ISO 14000 and QS 9000 certification.
Publicly traded             No

Contact Persons
Name                                 Phone                                  Email
                                     +91-33-22814516                        ho@birlatyre.com

Executive Team

Executive Name                       Designation                         Phone



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Company Website                       http://www.birlatyre.com/



                       Jk Tyre & Industries Ltd. - Company Profile.

  Company Profile: Jk Tyre & Industries Ltd.
               Ticker: 530007
         Exchanges: BOM
         2007 Sales: 27,652,000,000
    Major Industry: Chemicals
      Sub Industry: Rubber & Tire Mfrs.
             Country: INDIA
         Employees:


Business Description
Jk Tyre & Industries Ltd. Formerly known as J.K.Industries Limited. The Group's principal activity is to
design, develop, manufacture and market of conventional and radial tyres, tubes and flaps. It manufactures
truck and bus radials, steel radials for cars, LCV, trucks and bus. Its radial brands of the Group include
Ultimo and Rally.




                                        APOLLO TYRES LIMITED

Apollo Tyres Limited is the premier tyre manufacturing company in India. In truck tyres it has more than 30% market
share. The brand XT7 became the largest selling truck tyre in the country. The vision of the company is to be a leader
in the Indian tyre industry and a significant global player.

Quick Facts

 Country                                    India
 Industry                                   Tyre manufacturing
 Listings & its codes                       NSE: APOLLOTYRE; BSE: 500877
 Head Office                                7 Institutional Area, Sector-32
                                            Gurgaon Haryana - 122001, India
                                            Tel.: +(91)-(124)-2383002 to 18
 Registered Office                          6th Floor, Cherupushpam Bldg.
                                            Shanmugham Road, Cochin-682031 (Kerala)
                                            Tel.: +(91)-(484)-2381902, 2381903, 2380720
 Website                                    www.apollotyres.com




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Bridgestone

The Bridgestone Group (the parent company Bridgestone Corporation and its consolidated subsidiaries)
constitutes the world's largest manufacturer of tires and rubber products. The parent company was
established in 1931 in the small town of Kurume on the island of Kyushu in Japan. Today, the Bridgestone
Group has manufacturing bases in 25 countries and sells products in over 150 countries worldwide. Tires
accounted for about 80% of consolidated sales in 2006, with the remainder made up of a varied range of
industrial and consumer products, together with bicycles and other sporting goods.




        Headquarters              1-10-1 Kyobashi, Chuo-ku, Tokyo 104-8340 JAPAN


        Telephone                 +81-3-3567-0111


        Stock Code - TSE


                                  5108                          Stock Price - TSE




        President                 Shoshi Arakawa


        Sector                    Opthomology


        Industries                Industrial & Manufacturing


        Established               1931


        Listed                    1961


        Homepage                  www.bridgestone.co.jp/english/




                                      Market drivers: India
• Robust growth rate in all vehicular segments over last 5 years
• Improved capacity utilization by all major manufacturers(>80%)
• Decrease in custom and excise duties to nullify increase in raw


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Material costs and increases OPM
• Low labour cost : partially offset by low productivity
• Improved credit profile and loan serviceability


                                  Market challenges: India
• The Radicalization challenge- Radial vs. Cross ply Tyres
Global average- 65% India -2%

Why use Radial tyres?
Positives Negatives
Longer life -100,000 kms Comparatively Higher Cost
Better fuel efficiency – 5 to 8% marginally poorer overloading
Lower aspect ratio- Better control
• Other challenges –Poor roads
Misperception that they are unsuited for India
Difficulty to integrate in old vehicles
Lack of radial manufacturing capabilities




                                     Scope and challenges
• Industry poised for a very good growth rate
• More J.V’s with world market leaders- better technical
Know-how and quality
• Growth in automobile sector – cumulative effect on
Tyre industry
• Increasing trend in capacity utilization – better output
• New and uncharted territories as export markets.
• Increasing productivity – both labour and machinery
• Competition from other developing markets
• Increasing raw material costs – will effect OPM




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                                          MRF LTD.
                                          "Tyres with Muscle"


       MRF Ltd. is the first Indian company to export tyres to the US, the very birthplace of tyre
technology. It is the first company in India to manufacture and market Nylon tyres passenger
tyres commercially. In 2004, the company's turnover crossed INR 30 billion mark. The company
was given the title of most ethical company by 'Business World' magazine after a survey
conducted in 1999.
Quick Facts
Founder                           K. M. Mammen Mappillai

Country                           India

Year of Establishment             1946 as a toy factory

Industry                          Tyre Manufacturing

Listings & its codes              NSE: MRF; BSE: 500290

Registered Office                 124,                        Greams                       Road
                                  Chennai                 -               600                006
                                  India
                                  Tel.:                                   +(91)-(44)-28292777
                                  Fax: +(91)-(44)-28291844/ 0562

Website                           http://www.mrftyres.com/

Related Website                   http://www.mrf-exports.com/ (MRF Exports)




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Segment and Brands
      Truck / Bus Tyres

      Light Commercial, Jeep & Utility Vehicle Tyres

      Passenger Cars Tyres

      Off the road tyres

      Two-Wheelers Tyres




                                          MRF Ltd:
A LEADING PLAYER IN THE TYRE MANUFACTURING INDUSTRY
MRF Limited is engaged in the manufacturing, distribution
And sale of an extensive range of superior quality tyres for
Various kinds of vehicles.
The company’s operations relate to manufacture of rubber products, such as tyres, tubes, flaps,
tread rubber
And conveyor belt, as well as specialty coatings for a variety of applications. MRF has six
production facilities in India and around 80 sales offices. From its humble origins in 1946, the
company has come long way to become the market leader in the tyre manufacturing industry.
MRF exports its products to over 75 countries
Worldwide. Today, global tyre manufacturers have to plan and adapt to changes in customer
Demand, fluctuations in raw material prices and availability, while keeping pace with timelines
for shipments; in the face of increasing competition in the global marketplace.




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                     MRF ranked 12th by Crain Communication



MRF, India’s largest tyre-maker, has moved up the pecking order. According to the latest report
of Tire Business, published by Crain Communications of the US, MRF’s rank has improved to
12th during 2000 from 13th during 1999.
The special report titled, "2001 Global Tyre Company Ranking", covered 72 tyre companies
across the world. Commenting on the improved ranking of MRF, executive director
(marketing), Philip Eapen told ET, "It clearly shows the intrinsic strength of MRF, brand equity
and its ability to protect bottom-line.
He said that MRF is retaining its position as number one tyre company in India for the last
several years. Its improved global ranking comes at a time when the automotive industry is
facing a tough market with tremendous pressure on margins.
At the global level, Bridgestone Corporation was ranked number one by Tire Business, closely
followed by Michelin. Among other major Indian players, J K Industries was ranked 17th
against 16th in 1999 while Apollo Tyres moved up the ladder from 21 to 18 in 2000. Ceat was
positioned at 20 last year against 19 in 1999.
Eapen said MRF has emerged as the sole supplier of truck tyres to Volvo. While it is the largest
supplier of radial car tyres (40 per cent share) to Telco’s Indica with a monthly supply of 10,000
tyres.


MRF was originally started as a small manufacturing unit of balloons, latex cast squeaking toys
and industrial gloves. It was only in the year 1961 that the company started manufacturing tyres.
Today, MRF has 6 manufacturing plants in India located in Tiruvottiyur and Arakonam in Tamil
Nadu, Kottayam in Kerala, Ponda in Goa, Medak in Andhra Pradesh, and one in the Union
Territory of Pondicherry. It has a distribution network of more than 2,500 outlets in the country
and exports tyres in over 75 countries globally. The company established its first office in 1949
at Chennai, Tamil Nadu. It has overseas offices in United Arab Emirates, Bangladesh and
Vietnam.


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MRF manufactures the largest range of tyres in India and it has the highest brand preference. It
makes tyres for heavy duty truck, bus, light truck, passenger car to motor sports, rally cars, off
the road earth movers, two and three wheelers, farm service and military service. It is the market
leader and has 26 per cent share in the Rs 19,00000 million Indian tyre industry.


Funskool India is a joint venture between MRF and Hasbro Inc., USA, the world`s largest toy
company. Funskool`s Goa plant has been making its own moulds for a number of its products,
the most popular of which are Pipsqueaks, a range of low priced baby toys. MRF collaborated
with PIRELLI to manufacture Conveyor Belting. The MRF Conveyor Belt plant in Arkonam,
Tamil Nadu, with an annual capacity of 3000 tonnes, is the most modern belting plant in India.
The company also has a paints and coating subsidiary. It manufactures speciality coatings for
wide range of applications like Metalcoat, Woodcoat Glasscoat etc. MRF made a foray in
retreading as far back as 1970. MRF Pretreads is the most advanced Precured Retreading system
in India. MRF made a foray in retreading as far back as 1970. In the MRF Pretreads system, the
tread rubber is precured from MRF`s factory. It also has the specialised expertise required for
retreading Radial Tyres. The company is an original equipment supplier (OES) of radial tyres to
Tata Indica, Hyundai Elantra, Ford Fiesta and many other cars. Volvo also sources most of its
tyres         from           MRF            for          its         Indian           operations.




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Financials
The Company swung to loss for the quarter ended December 2008. During the quarter, the
company reported loss of Rs 383 million compared with a profit of Rs 517.50 million in the
same quarter last year. Net sales for the quarter rose 17% to Rs 13,519.70 million, while total
income for the quarter rose 16.81% to Rs 13,560.30 million, when compared with the prior year
period. It reported loss of Rs 90.32 a share during the quarter compared with earnings of Rs
122.03 a share in previous year period.




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      PRODUCT CATEGORY IN TWO
                WHEELER SEGMENT




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Awards and Achievements:
In 2000, MRF launched smile campaign on Indian
roads.




                      MAJOR MILESTONES OF MRF COMPANY




  The company has stood Himalayan height in the tyre industry. It grabbed all most all
  prestigious awards in the key areas like production, customer satisfaction, exports and
  many more.




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                                    MRF: A tough brand

       An enterprise that started as a toy ballon maker in 1946 in South India quickly grew to
become one of India’s biggest and respected companies. Renowned for product superiority and
innovation, MRF continues to be the leading tyre maker in India.
MRF crossed the INR 3 bn mark and also became the No 1 tyre company in India. MRF legend
the premium nylon car tyre was introduced.
The MRF pace foundation was set up with international pace bowler, Dennis Lilli as its director.
Not long thereafter, pace bowlers trained at the foundation were selected for the Indian cricket
team. In the year 1989, MRF was the clear market leader in every tyre segment. Once again in
recognition of excellence, MRF was awarded the Vishweshwarayya award for the Best business
house in India.
MRF collaborated with Hasbro Intl USA, the world’s largest toy makers, and launched funskool
in India. Company also entered into collaboration with Vapocure, Australia to manufacture
polyurethane paint formulations and with Pirelli muscleflex, conveyor, and elevator belting.
MRF also opened the MRF tyredrome, India’s first tyre company owned wheel care complex at
Madras.
MRF brought the 6th world cup boxing championship to Mumbai the first of its kind- with 39
countries participating. In 1993 & 1995 the company was voted by the far eastern economic
review as one of the ten leading corporate groups in India and a leader in Asia. During the same
time MRF was selected as one of India’s most admired marketing companies by the readers of
the A&M magazine.
The company’s turn over crossed INR 15 bn in the year 1995.In 2000, MRF launched smile
campaign on Indian roads. It also launched ZVTS tyres for passenger cars in 2000.
MRF wins JD power award in 2003 & 2004. So far it has taken 6 JD awards.
IN the year 2004, MRF’s turnover crossed INR 30 bn mark. In 2005, MRF wins the it’s third
APRC rally. In 2006, MRF’s turnover crossed the 5000 crore mark.




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               COMPANY PROFILE




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                        INTRODUCTION OF D.D. TYRES
Establishment:
                          On Feb 7th 2006, the D.D. Tyres authorized dealer for MRF tyres. It was
inaugurated by Shri Charantimath Prabhu Swamiji & Asst District Manager Mr. Paul Alplar,
regional office, Belgaum.
                         MRF company follows the corporate identity for the establishment of
showrooms across the country.
Corporate Identity:
It means the company has its policy in respect of land, building, paints & timing of showroom.
It considers the following factors while starting a showroom as per the Corporate Identity.
   i) Location: Every commercial phenomena needs a good location. It up lifts the business
           process. D.D.Tyres situated in a main road and it is connected to a bus stand.
   ii) Building: For customer attraction a well planned infrastructure is essential. It has 500
           sq. ft area of show room. As well as 200 sq feet for gowdown, which is connected
           with show room.
   iii) Machinery: To install the tyres in proper way it has different machines like ..,
           a) Tyre Fermant machine
           b) Air Compressor
           c) Wheel alignment tooling machine
   iv) Labours: The labours are the base for any organization. And in Bagalkot, there is no
           problem for required labours for this business. D.D.Tyres has sufficient and skilled
           workers.

    Key Competitors: Newly established Appollo Tyres Show rooms and other local branded
tyre showrooms. But these have not any significant effect on show room activities.




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SPECIFICATIONS OF CORPORATE IDENTITY
   1) Showroom must be situated in a place which should have easy connectivity.
   2) Show room must have the length of 500 sq.ft.
   3) Frontage of 20 feet connected with gowdon of minimum 200 sq.ft.
   4) Display of racks, inside & outside showroom colour, display boards, tiles, reception
      table, as per the company specifications.
   5) Showroom should have automotive tyre fitment machine which must be placed in the
      showroom visible to the customers.
   6) Company decides monthly sales target, on the basis of population and number of
      vehicles. Target goes on renewing and dealer must compulsorily achieve the target.
   7) Company has regional offices, so as to fulfill the needs of a dealer. It also has employed,
      technical supervisor, sales supervisors.


      DUTIES OF TECHNICAL SUPERVISION:
   1) To look after the dealers problems.
   2) To facilitate any changes in price of a tyre any improvements, and to inform the new
      tyres which are going to introduce in the market.
   3) Technical Supervisor is a qualified technical person who actually completed engineering
      and got training regarding tyres and tubes specifications.
   4) One regional office covers 4 districts. Bagalkot comes under regional office of Belgaum.
   5) Company usually replaces tyres if tyres are found to have minimum of 5% manufacturing
      defects.




DUTIES OF SALES SUPERVISOR:
   1) Twice in a month he visits the dealer.
   2) Collects information about the customer.
   3) Visiting each and every customers and informing them about quality and price of tyres.
   4) He helps the dealer to increase the sales and works with them to achieve the monthly
      targets.



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   DEPARTMENT OF D.D.TYRES, BAGALKOT
      To provide better service DD TYRES has made 3 sections. They are as follows.
   1) Sales Section
   2) Accountant
   3) Service station



   SALES SECTION
      To achieve increased sales DD TYRES has separate sales section. It provides the
   quotations and all information regarding the tyres to the customers. Sales section plays
   significance role in achieving targets by. It has to provide all information regarding sales to
   regional sales supervisor.
   ACCOUNT SECTION
      It collects all information of transaction and records in systematic manner. It maintains
   different account books for different tasks. It also maintains ledgers and regular balance
   sheets.


   SERVICE SECTION
      This department provides quality service to customers. It fits the tyres in right position
   with the help of tyre fitment machine. And it replaces the defective tyres if the tyres found to
   be 5% defectives and provides tyre remolding facility to customers in a less price.




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                        FUNCTIONS OF THE SHOW ROOM
   I) Customer Visit: Customer care supervisor attends the customer and gives information
          regarding :
          a) Model
          b) Size
          c) Price
          d) Quality
          e) Other information about tyres.
   II) Complaint of tyres: Complaints are taken from the customer recorded in the dockets like
          serial number, name of customer, contact number, date of purchase and purchase bill.
   III) If any car radial tyres purchased from the showrooms, then the tyres will be fitted in the
          showroom with the help of automate tyre changer.
   IV) Dealer has to pay from his own pocket for any promotional activities undertaken by him.
   V) It collects information regarding to tyre users and sends it to regional office.




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DISRTIBUTION CHANNEL:                       The company has vertical marketing system. The
structure of the marketing system .




       It involves the distribution of tyres and tubes purchased from the company. The

showroom makes the purchase of tubes and tyres. For the Belgaum regional office, and

distributes tyres and tubes to the customer through the show room.

       The D.D. Show room stands at the Dealers stage in the network of distribution. It

performs the operations according to the policies of the company.




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Type of tyres             2006-07        2007-08              2008-09*


Truck / Buses             22             46                   60


Light Commercial          8              16                   28
Vehicles
Jeep/trekker/Trax         4              6                    10


Car BIAS ply              4              -                    -


Car radials               24             48                   70


Motorcycle(Light          90             150                  225
motorcycles)
Moped                     5              12                   15


Scooter                   4              10                   15


Auto & Vikram             32             80                   150


Tractor rear              2              4                    6


Tractor front             4              10                   20


Tractor trailor           2              2                    2




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                           RESEARCH METHODOLOGY


       To achieve the stated objective a survey was conducted at Bagalkot city regarding

customer “satisfaction towards MRF Tyres” provided by D.D.Tyres show room Bagalkot.

       Primary Data:

       Primary data is collected by the random sampling method. Here we have randomly

interviewed 50 customers through Questionnaire and personal interview and collected the

primary data.

       Secondary Data:

       These are generally published sources which have been collected originally for some

other purpose, they are not gathered specially to achieve the objectives of the particular research

project hands but already assembled.

       Survey Techniques:

                Once the researcher has decided to use survey method for collecting data he has to

make a decision to adopt any one of the following survey techniques.

       1. personal interview

       2. telephone survey

       3.   mail survey




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       Questionnaire

       It is the most commonly used instrument in collecting primary data. A questionnaire

consisting of set of questions presented to a respondent for his/her answer. The questionnaire is

very flexible in the sense that there are many ways to ask questions.

       Data Collection:

       Method used to collect data for the study was through survey. Survey is a systematic

collection of information directly from the respondents; survey was through personal interview

which involves collection of data through face to face communication with the help of

questionnaire.

       Method of Sampling:

       Bagalkot city has a huge population and each person’s opinion cannot be collected. So

the respondents were chosen randomly in Bagalkot city.

       Sample Size:

       Sample size for the study consisted of 50 persons residing in Bagalkot city. Among them

only some of them responded and others rejected to respond as they were not interested.

       Sample Unit:

       Customer of D.D.Tyre showroom and owners of vehicles in Bagalkot City.




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                    CHAPTER III




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      DATA ANALYSIS

                                AND

  INTERPRETATION



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                      DATA ANALYSIS AND INTERPRETATION



Data Analysis:



       I have conducted marketing survey on 50 customer to analysis their satisfaction level, for

this purpose I have prepared a questionnaire to collect the information from them. Among these

50 customers, only some of them responded as per that now we will see the analysis of the

collected data.



   1. The following tables shows the factors which motivated the customer to purchase the

       “MRF TYERS”



             FACTORS                                 CUSTOMERS

                  Friends                                8

            Brand Image                                  9

           Advertisement                                 9

              Relatives                                  8

            Self-decision                                16

                   Total                                 50




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     0.35
       0.3
     0.25
       0.2                                                                     Series2
     0.15                                                      31%             Series1
       0.1                            19% 21%
                          16%                         13%
     0.05
          0        0
                           t


               de s
                          s
                       RS




                         e




                         n
                       en


                        e
                      nd

                      ag




                      sio
        Se ativ
                     O




                     m
                    ie

                  Im




                   ci
               CT




                 se
                Fr




                  l
             Re
               d

             rti
    FA




          an




           lf-
         ve
        Br

       Ad




Interpretation:

The above table & graph shows that:

    A. 16 customers have purchased MRF Tyres by there own decision.

    B. 8 customers have purchased MRF Tyres by there Friends recommendation.

    C. 9 customers have purchased MRF Tyres by its Brand Image.

    D. 9 customers have purchased MRF Tyres on the basis of Advertisement.

    E. 8 customers have purchased MRF Tyres on there Relatives recommendation.




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    2. The following tables shows the level of satisfaction of customer need/purpose of

    purchasing “MRF TYRES”

              Fully Satisfied                                        23

                 Satisfied                                           17

                Dissatisfied                                          7

             Fully dissatisfied                                       3

                   Total                                             50




                         Fully
                     dissatisfied
                         7%
          Dissatisfied
             13%
                                                                    Fully Satisfied
                                         Fully Satisfied
                                                                    Satisfied
                                              45%
                                                                    Dissatisfied
                                                                    Fully dissatisfied
        Satisfied 35%




Interpretation:

The above graph shows that:

45 % of people are fully satisfied with the purchase of MRF tyres.

35 % of people are just satisfied with the purchase of MRF tyres.

13% of people are dissatisfied with the purchase of MRF tyres.

7 % of people are fully satisfied with the purchase of MRF tyres.



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3. As compare to other tyres the “MRF TYRES” are rated as below.

   A) Price of Tyres

             Strongly Satisfied                                       15

                  Satisfied                                           16

                Not Satisfied                                         10

            Fully Not Satisfied                                       9

                    Total                                             50

Interpretation:
30 % of customers are strongly satisfied with the price of MRF tyres.

35 % of customers are satisfied with the price of MRF tyres.

21 % of customers are not satisfied with the price of MRF tyres.

14 % of customers are fully not satisfied with the price of MRF tyres.

   B) Quality Of Tyres:

             Strongly Satisfied                                       23

                  Satisfied                                           15

                Not Satisfied                                         8

             Fully Not Satisfied                                      4

                    Total                                             50

Interpretation:
45 % of customers are strongly satisfied with quality of the tyres.

30 % of customers are satisfied with quality of the tyres

16 % of customers are not satisfied with quality of the tyres

9 % of customers are fully not satisfied with quality of the tyres.




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   C) Durability of Tyres

             Strongly Satisfied                                    23

                  Satisfied                                        16

               Not Satisfied                                       7

            Fully Not Satisfied                                    4

                   Total                                           50

       Interpretation:
45% of customers are strongly satisfied with durability of tyres

32%of customers are satisfied with durability or tyres

14%of customers are not satisfied with durability or tyres

9%of customers are fully not satisfied with durability of tyres.

   D) Performance Of Tyres:

             Strongly Satisfied                                    21

                  Satisfied                                        17

               Not Satisfied                                       7

            Fully Not Satisfied                                    5

                   Total                                           50

Interpretation:
   42%of customers are strongly satisfied with performance of tyres

   35% of customers are just satisfied with performance of tyres

   14% of customers are not satisfied with performance of tyres

   9% of customers are fully not satisfied with performance of tyres




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   E) Mileage Of Tyres:

            Strongly Satisfied                                   24

                Satisfied                                        15

              Not Satisfied                                       7

           Fully Not Satisfied                                    4

                  Total                                          50

Interpretation:
   48% of customers are strongly satisfied with the performance of tyres

   30% of customers are only just satisfied with the performance of tyres

   13% of customers are not satisfied with the performance of tyres

   9% of customers are fully not satisfied with the performance of tyres




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5) The following tables show the customer opinion about “MRF TYRES”.


              Fully Satisfied                                       14

                 Satisfied                                          21

               Not satisfied                                        8

           Fully Not Satisfied                                      7

                  Total                                             50




                                                                   100%    100%
                                                                           90%
                                                                           80%
                                                                           70%
                                                                           60%
                                                                           50%
                             42%                                           40%
            28%                                                            30%
                                         17%                               20%
                                                        13%
                                                                           10%
                                                                           0%
            Fully      Satisfied       Not             Fully Not   Total
          Satisfied                  satisfied         Satisfied


Interpretation:
   As per the above chart it shows the details:

   28 % of customers are fully satisfied

   42 % of customers are satisfied

   17 % of customers are not satisfied

   13 % of customers are fully not satisfied



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   6) The following table’s shows the behavior of the showroom people while taking quotations

   or purchasing the “MRF TYRES”.

               Very Friendly                                     17

                 Friendly                                        22

               Not friendly                                      4

               Don’t know                                        7

                   Total                                         50



       120%

       100%                                                              100%

        80%

        60%

        40%                          44%
                           34%
        20%
                                                   9%      13%
          0%
                    Very Friendly             Not       Don’t         Total
                  Friendly                 friendly     know


Interpretation:
34 % customer say that the behavior of showroom people while taking quotation or purchasing

     MRF tyres were very friendly.

44 % customer says that the behavior of showroom people were friendly

9 % customer says the behavior of showroom people not friendly

13 % customer says the behavior of showroom people – don’t know


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7) The following table shows the customers opinion about service charges in show room.

             Very Reasonable                                       15

                Reasonable                                         21

                  Costly                                            8

               Very Costly                                          6

                  Total                                            50



          120%
                                                                        100%
          100%
            80%
            60%                                                                     Series1
                                    42%
            40%            30%
                                                16%           12%
            20%
              0%
                                                         tly
                             e




                                                                       l
                                              ly
                            e




                                                                    ta
                          bl


                          bl


                                             t

                                                     os


                                                                   To
                                          os
                       na


                       na




                                                    C
                                        C
                    so


                    so




                                                 y
            ea




                                               er
                 ea




                                             V
          R


               R
        y
      er
    V




Interpretation:
30 % of customers said that service charges are very reasonable.

42 % of customers said that service charges are reasonable.

16 % of customers said that service charges are costly

12 % of customers said that service charges are very costly




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8) The following tables show why customer prefers “MRF TYRES”.

                  Quality                                          19

                   Price                                           12

                  Service                                           8

                Durability                                         11

                   Total                                           50




                 Durability
                   22%
                                                               Quality
                                                                38%
              Service
               16%
                                     Price 24%




Interpretation:
38 % customers prefers the MRF tyres due to the good Quality

24 % customers prefers the MRF tyres due to the reasonable price

22 % customers prefers the MRF tyres due to its durability

16 % customers prefers the MRF tyres due to its service




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9) The following tables shows the problems faced by customers while purchasing “MRF

TYRES”

           Lack of Information                                11

  Non co-operation of show room people                         4

                  Delay                                        8

               No problem                                     17

                  Total                                       50




                                                              Lack of
                                         54%
      60%                                                     Information

      50%
                                                              Non co-operation of
      40%                                                     show room people

      30%            22%                                      Delay
                                  17%
      20%
                            7%
      10%                                                     No problem

       0%
                              1


Interpretation:
22 % customer faced the problem due to lack of information

07 % customer faced the problem due to non cooperation of show room people

17 % customer faced the problem due to delay

54 % customer faced no problem

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                      CHAPTER IV




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                                       FINDINGS

             31% of customers have purchased on there own decision. They have decision

               on the basis of experience and some customers have taken after making

               comparison with other tyres. Hence it reveals that customers are satisfied with

               “MRF TYRES”



             Majority of customers means 45% are satisfied with the fulfillment of their

               need/purpose.



             Only 30% of customers are fully satisfied with price of the tyres about 21%

               are not satisfied and 14% of customers are fully not satisfied with the price.



             About 45% of customers are fully satisfied,30% o f customers are only just

               satisfied and 16% are not satisfied with the quality.



             About 45% of customers are satisfied with durability of tyres, and 14% are not

               satisfied with durability.



             About 42% of customers are fully satisfied with the performance of the tyres,

               and only 14% are dissatisfied.




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             The customers are having a very good opinion about the MRF TYERES”

               about 28% are strongly satisfied with its performance, and only 17% are not

               satisfied with performance.



             The customers are having very good opinion about the behavior of showroom

               people about 44% of customers are saying they are friendly and only 13% are

               don’t know.



             The service charges are very reasonable in the view of about 43% of

               customers and about 11% of customers believe that the service charges are

               costly.



             Majority of customers are fully satisfied with the “MRF TYRES”




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                                   SUGGESTIONS

SUGGESTIONS TO SHOWROOM:



          Showroom must recruit well qualified and skilled labours that care about the

            customer. It will abolish the problem of unskilled and poor quality service.

          Showroom employees and workers should maintain friendly relation with every

            customers.

          Showroom should provide the remolding system to the existing customers.

          Showroom should maintain tyres, tube, air compression machines etc,. which are

            needed to the customer at any time.

          Always adopt the improvement of servicing system and keep the showroom in

            good conditions.




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                        SUGGESTIONS TO COMPANY:



         o The company should reduce the price of there products.

         o Improve the distribution network and make available the products in needed time

            of customers.

         o Company always keeps some prizes and gifts to attract the customers.

         o The products should advertised in the Regional TV channels and in leading

            newspaper must.




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                    CHAPTER V




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                                   CONCLUSION



      According to the study I conclude that the MRF TYRES company satisfies the customer

need and the purpose, but only problem is with the service given to the customers by the

showroom. So, as per study in my opinion based on project I can say that MRF TYRES should

think about the service provided by showrooms in order to capture the maximum market

segment.



      According to Bagalkot city the market is vast almost the whole district customers and

other new people purchase the MRF Tyres because it is old brand running tyres in market.

Almost people demands the MRF Tyres comparing to other company tyres.



      Company provide more advertisement and always keep customers need with

development of MRF Tyres.




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          “Customers Satisfaction towards MRF TYRES in Bagalkot city”

                                      QUESTIONNAIRE

Dear Sir/Madam,

(Please tick (    ) appropriate answer in the box / space)

I. Customer Introduction:

  a. Name               : _____________________________________________

  b. Address            : _____________________________________________

                         _____________________________________________

  c. Occupation / Job: _____________________________________________

II. Which factors motivated you to purchase “MRF TYRES”?

   A: Friends                  [ ]        B: Brand Image                [ ]

   C: Advertisement            [ ]        D: Relatives                  [ ]

   E: Self decision            [ ]        F: Others                     [ ]



III. To what extent the “MRF TYRES” has satisfied your purpose / need?

   A: Fully Satisfied          [ ]           B: Satisfied               [ ]

   C: Dissatisfied              [ ]          D: Fully Dissatisfied      [ ]

IV. As compare to other tyres how do you rate the following characteristics of your

   “MRF TYRES”

Characteristics         Excellent       Very good            Good             Average

Price

Quality

Durable



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Performance

Mileage



V: What is your opinion about “MRF TYRES”?

   A: Excellent              [ ]           B: Very Good        [ ]

   C: Good                   [ ]           D: Bad              [ ]

VI: what was the behavior of show room people while taking quotations or while

   Purchasing “MRF TYRES”?

   A: Very Friendly                 [ ]

   B: Friendly                      [ ]

   C: Not-Friendly                  [ ]

   D: Don’t Know                    [ ]



VII: What is your opinion about “service charges” in the show room?

   A: Very Reasonable               [ ]

   B: Reasonable                    [ ]

   C: Costly                        [ ]

   D: Very Costly                   [ ]

VIII: Why did you prefer “MRF TYRE”?

   A: Quality                       [ ]

   B: Price                         [ ]

   C: Service                       [ ]

   D: Durability                    [ ]

IX: What problems faced while purchasing “MRF TYRES”?

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   A: Lack of information’s                                 [ ]

   B: Non co-operations of show room peoples                [ ]

   C: Delay                                                 [ ]

   D: No problem                                            [ ]

X: Give your valuable suggestions to improve “MRF TYRES”?

   A: __________________________________________________

   B: __________________________________________________

   C: __________________________________________________




            ***************THANK YOU***************




                                     BIBLIOGRAPHY

To complete this project I have referred the following books:



    I. MARKETING MANAGEMENT                         -       PHILIP KOTLAR.



   II. MARKETING RESEARCH                           -       TULL & HAWKINS


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  III. WWW.MRFTYRESINDIA.COM




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