Description
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation.
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CERTIFICATE
This is to certify that Mr. Balram Sharma has successfully completed his project, titled Market Survey of Customer Satisfaction On Mileage Project at Standard Chartered during the academic year 2004-2006 for partial fulfillment of Master of Business Administration (M.B.A) from Vishwakarma Institute of Management under our guidance.
(Dr. Sharad L. Joshi) Director, V.I.M
(Prof. Rajesh Vhatkar) Project Guide
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A PROJECT REPORT ON
Market survey of customer satisfaction on mileage product
FOR
Standard Chartered Finance Limited
At Pune
Submitted in the Partial Fulfillment of the Requirement of Course Master of Business Administration
(SESSION 2004-2006)
Submitted by Balram Sharma Guide Prof. Rajesh Vhatkar Vishwakarma Institute of Management Pune
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| Mileage | ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person at the right time. Success of a project is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most valuable professional guidance. This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provide me with the necessary recourses and atmosphere conductive for healthy learning and training. At the outset I would like to take this opportunity to gratefully acknowledge the kind and patient guidance I have received from my project guide Mr. Ram S Patil (Branch Manager) and Mr. Amar A Shah (Sales Officer) without his critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. In addition, my internal guide Prof. Rajesh Vhatkar has critically evaluated my each step in developing this project report. I would like to extend my gratitude toward Dr. Sharad L. Joshi, Director, Vishwakarma Institute of Management, for his technical and moral support required for the realization of this project report. Lastly, I would like to thank all the members of STANDARD CHARTERED, and my colleagues who gave me fruitful information to finish my project.
BALRAM SHARMA
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TABLE OF CONTENTS
CHAPTER NO
TITLES Executive Summary Introduction
PAGE NO
1. 2. 3. 4. 5. 6. 7. 8. 9.
Company Profile Product Profile Objective Research Methodology Analysis Findings Recommendations Bibliography Annexure
13 19 35 37 44 54 56 58 60
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EXECUTIVE SUMMARY
With the radical changes in the new era of Banking, General Public is becoming more and more conscious of the services and facilities the different banks are providing. Banks have also started moving towards the retailing segment to improve their deposit portfolio. The delivery channel has also been shifted from braches to ATMs, phone banking, Internet banking etc. Sales promotion has also been used to position the product correctly and to increase its image in the eyes of the customers. Several methods are being used like day-to-day promotional activities such as discounts, offers, loans, trade promotion, and other promotional activities and so on. In the successive parts of the project, we will be talking about organization, its past history, present scenario, and future plans. We will be discussing about the special services (Mileage) provided by the Standard Chartered . In brief the whole project can be glanced in the following sub parts.
TITLE Market Survey of Customer Satisfaction on Mileage Product Awareness of the Services offered by Standard Chartered Bank.
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INTRODUCTION The study was conducted to increase the brand awareness & know the customers perception about the car O.D. product Mileage offered by Standard Chartered Finance Limited.
Introduction also contains: Industry Profiles: In industry profiles the development of banking sector from past to present has been discussed.
Company profile: In the company profile, the history and current scenario of Standard Chartered bank have been described in length.
Service and Product Profile: In this we will talk about the special product mileage by Standard Chartered Bank.
OBJECTIVE Under this heading the different objectives have been stated which are as follows: 1. To find out brand awareness about Mileage . 2. To know about decision makers. 3. To analyze the market potential of the product Mileage . 4. To check the satisfaction level of existing customers. 5. To know about customer preference. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 7
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RESEARCH METHODOLOGY The research methodology used was descriptive research. The sample size was 300 respondents and the sampling procedure used is Non Probability purposive sampling . Details about the data collection methods and sampling units could be seen under the heading Research Methodology. ANALYSIS Under this part the different analysis have been done such as: Analysis of data collected The study shows that the awareness level about the
product overall is not so good, how ever with existing customer s of Standard Chartered it is at a satisfactory level. The potential of the product Mileage is very high. For details see Analysis S.W.O.T. Analysis The SWOT analysis suggests that the good reputation of the
bank and exclusive nature of product along with experience and market share for car O.D. products are the major strengths. And the lack of a distribution network along with poor advertising and less number of ATM s and branches are major weaknesses. Lower customer base and big competitors are some of the threats and low market penetration in semi urban areas provide excellent growth opportunities.
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FINDINGS There is lack of awareness about the Car O.D. concept. Satisfaction level of existing customers is satisfactory, however business class people want more prompt service. Business class people mainly rely on O.D s and borrowing from the market. Working class and professional normally rely on friends/ relatives and other sources funds such as credit cards. There is a huge potential for the product Mileage among all profession groups, how ever Car O.D. is thought to be costlier then Credit cards. Most of the customer who refuses to go for Mileage and go for other car O.D. products cites less number of branches and ATM s as primary reason.
RECOMMENDATIONS More branches and ATM s should be opened to leverage upon the good will and the experience of the bank. Attention should be given on advertising and promotional campaigns. Speed of delivery should be improved. Sales teams should be properly trained and used.
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INTRODUCTION
Standard Charted Bank has been established for over 150 years. It spans the developed and emerging economics of the world with a network of over 500 offices in more than 50 countries. This study aims at creating and analyzing brand awareness among the target customers about the product Mileage offered by Standard Chartered Finance Limited. As the awareness level and market penetration for Car O.D. products is very low in India, the company aims at gaining a greater market share by providing efficient and fast service and by creating awareness about Mileage. People usually rely on bank limits i.e. bank O.D. for their needs but for small business man and officials having a high bank limit is difficult. The company aims to target these customer groups & offer innovative products that serve their needs fast and efficiently.
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COMPANY PROFILE
Overview Standard Chartered is the world s leading emerging markets bank. Its headquarter is in London. Its business however has always been overwhelmingly international. It employees 30,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, Middle East, Africa, United Kingdom and the Americas. It is one of the world s most recognized banks, with a management team comprising 70 nationalities.
The bank serves both consumers and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The wholesale bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody leading, foreign exchange and interest rate management and debt capital markets. With nearly 150 years in the emerging markets, the banks has unmatched knowledge and understanding of its customers in its markets. The bank is trusted across network for its standard of governance and its commitment to make a difference in the community in which it operates.
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A summary of the events in the history of Standard Chartered Standard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard Bank of British South Africa and The Chartered Bank of India, Australia and China. Of the two banks, The Chartered Bank is the older one has been found in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the world s pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in south Africa and had become a successful merchant. Both banks were keen to capitalize on the expansion of trade between Europe, Asia, Africa and to reap the handsome profit to be made from financing the trade. The Chartered bank open its first branch in 1858 in Chennai and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861, the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly producing rubber and tin industries in Malaysia. In 1862, The Chartered bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th century. Over the following decade both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, and
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Malaysia. Today Standard Chartered is still one of the three banks which print Hong Kong s bank notes. Standard Chartered PLC In 1969 the decision was made by the Standard Bank and the Chartered Bank to undergo a friendly merger thus forming standard Chartered PLC. It was one year later that the descendants of the Chartered Bank of India, Australia and China were finally permitted to open a representative office in Sydney, Australia. Standard chartered subsequently acquired the UK based Hodge Group, in which it already had a minority shareholding, and the Wallace Brothers Group. The Hodge Group brought to Standard Chartered an extensive network of UK offices specializing in installment credit and industrial leasing and after a period of rationalization its name was changed to Chartered Trust limited. Standard Chartered operations in Jersey emerged from the integration of other Hodge Group Business with those of Wallace Brothers Bank (Jersey), Limited. Standard Chartered decided, after a merger, to expand the Group outside its traditional markets. In Europe a number of offices were opened including Austria, Belgium, Denmark, and Ireland, Spain and Sweden as well as several major cities in the UK. Standard Chartered also opened offices in Argentina, Canada, Colombia, the Falkland Islands, Panama and Nepal. In the USA, a number of offices were opened and three banks were acquired. These included the Union Bank of California which gave Standard a Chartered a presence in Brazil and Venezuela. The opening of a branch in Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyds bank of the UK made a hostile take-over bid
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for Standard chartered. Standard Chartered won its right to remain independent but entered i8nto a period of considerable change. By the late 1980s Standard Chartered already had considerable exposure to third world debt. To this were added provisions against loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered reviewed its operations and decided to focus on its core strengths of Consumer Banking, Corporate & Institutional Banking and Treasury in its well-established operations in Asia, Africa and the Middle East. This led to a series of divestments notably in Europe, the United States and Africa. During this time staff numbers were reduced, businesses not considered core, were sold or closed, associate holding disposed of, unprofitable branches closed and back office functions consolidated. In addition expensive buildings were sold with the proceeds reinvested in the business, and the senior, management team was radically changed and strengthened.
Standard Chartered in the 1990s Even within this period of apparent retrenchment Standard Chartered expanded its network, re-opening in Vietnam in 1990, Cambodia and Iran in 1992, Tanzania in 1993 and Myanmar in 1995. With the opening of branches in Macau and Taiwan in 1983 and 1985 plus a representative office in laos (1996) Standard Chartered now has an office in every country in the Asia Pacific Region with the exception of North Korea. In 1998 Standard Chartered concluded the4 purchase of a controlling interest in Banco Exterior de los Andes extebandes) an Andean region bank
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involved primarily in trade finance. With this purchase Standard Chartered now offers full banking services in Colombia, Peru and Venezuela. In 1999, Standard Chartered acquired the global trade finance business of Union Bank of Switzerland. This acquisition makes Standard Chartered one of the leading clearers. There is, of dollar payments in the USA. Standard Chartered also opened a new Subsidiary, Standard Chartered Nigeria Limited in Lagos, acquired 75 per cent of the share capital of Metropolitan Bank of the Lebanon.
Standard Chartered current scenario Today Standard Chartered is the world s leading emerging markets bank employing 30,000 people in over 500 offices in more than 50 countries primarily in countries in the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas. The new millennium has brought with it two of the largest acquisition in the history of the bank with the purchase of Grindlays Bank from the ANZ Group and the acquisition of the Chase Consumer banking operation in Hong Kong in 2000. These acquisitions demonstrate Standard Chartered firm commitment to the emerging markets, where we have a strong and established presence and where it sees its future growth. It is listed on both the London stock exchange and the stock exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalization.
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MILEAGE
The documentation for the Mileage proposal is divided into 3 parts . 1. KYC (Account Opening) Document. 2. RTO Documents. 3. Scheme Documents.
1. KYC (ACCOUNT OPENING) DOCUMENTS Here we needs IAS (Identity, Address & Signature verification) Documents
For IDENTITY 1. Permanent Account Number (PAN) Card. 2. Driving License. 3. Passport 4. Voters ID Card 5. Any Govt Dept ID Proof For RESIDENTIAL ADDRESS 1. Electricity Bill 2. Telephone. Mobile, WLL Bill 3. Ration Card 4. Passport 5. Driving license 6. Life/Medical Insurance Policy 7. Voters Identity Card _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 19
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8. Municipal Tax/Water Tax Bill
FOR SIGNATURE VERIFICATION 1. Permanent Account Number (PAN) Card. 2. Driving License. 3. Passport 4. Signature Verification from the Bank where applicant is holding saving, current or cash credit account.
FOR ACCOUNT TO BE OPEN IN THE NAME OF FIRM We can open account on the proprietorship, and partnership and Private Limited Companies names ..
FOR PROPRIETORSHIP FIRM 1. Shops and Establishment Certificate 2. Sales Tax Registration Certificate 3. Bank Statement of Firm account for the last 6 months and Business Verification 4. SEBI Registration Certificate 5. Importer-Exporter Code Certificate + PAN proof OF proprietor
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FOR PARTNERSHIP FIRM 1. Registered Partnership Deed 2. Sales Tax Registration Certificate 3. Bank Statement of Firms account + Banker Verification of signature 4. Importer-Exporter Code Certificate 5. Shops and Establishment Certificate 6. A Utility Bill in the name of firm with name and address match with AOF
FOR RESIDENT (PVT.LTD.) COMPANIES 1. MOA & AOA & True copy of Certificate of Registration 2. True Copy and Extract of Board Resolution 3. List of Shareholders who hold more over 20% 4. Bank Statement of Firm account for the last 6 months + Banker Verification of signature 5. SEBI Registration Certificate 6. Sales Tax Registration Certificate & Shops & Establishment Certificate
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| Mileage | WHAT IS MILEAGE?
1. You can withdraw funds from your mileage account up to the sanctioned limit, by cheque or Debit card. 2. The amount withdrawn each time reduces available limit. 3. Limit available increases on payments into the account, and or payment of the minimum amount due each month. 4. Therefore, Credit Line revolves according to withdrawals and payments.
WHAT IS REVOLVING CREDIT ? 1. You can withdraw funds from your mileage account up to the sanctioned limit, by cheque or Debit card. 2. The amount withdrawn each time reduces available limit. 3. Limit available increases on payments into the account, and or payment of the minimum amount due each month. 4. Therefore, Credit Line revolves according to withdrawals and payments.
PRODUCT FEATURES: Cash Overdraft from 60% to 80% of assessed value of car less than 8 years old. Interest outflow only on utilization, no fixed monthly installment, no post dated cheques. Free end use of facility, limit can be reused basis repayment made, Part payment at will.
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A Zero balance current or saving account in Standard Chartered Bank, get multi city cheque book and Debit card. Repayment: Customer will have the flexibility of paying the entire Outstanding lump sum or repaying the minimum 5% outstanding billed each month. Cheque Drop Box: Cheque Drop Boxes are placed at convenient location; customers can use those Drop Boxes to drop their repayment cheque.
HOW CAN WE USE MILEAGE? Get revolving credit to meet any need, with your car as security. Use The Funds For : 1. Working capital requirements. 2. As a personal loan without the post dated cheques. 3. For unforeseen exigencies. 4. For a holiday 5. For renovation of the house. 6. For your child s education. 7. To buy a consumer durable 8. For any other purpose of your choice WHAT ARE THE BENEFITS OF MILEAGE? Revolving credit facility, with repeated usage of money. The entire credit limit can be withdrawn in cash. Multi-city cheque books on request at no extra cost. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 23
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Monthly statement of account on credit limits utilization. 1. Account statements with minimum amount due and due date details. 2. Interest calculation sheet with details of dateless balances, interest-bearing balances, debit interest, and credit interest. Sent monthly, this helps you check how the interest was calculated. No charges if the auto overdraft facility is not used. Repayment flexibility, of minimum 5%of entire outstanding amounts every month. Interest charged only on debit outstanding, calculated on daily basis but charged on monthly basis. No charges if mileage facility for repayment cheques. 24 hour phone banking including queries on the mileage account. (Available in select cities) End use: can be used for multiple purposes. Flexibility of use: withdrawal and repayment. Interest charged: only on amount loan utilized. Post dated cheques : None Repayment amount: Flexible, minimum 5% of due every month. Pre-closure Charges: 5.51% of Sanctioned limit Rate of interest: 18% - 19.5% Cash limit: 100% of limit sanctioned
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WHAT ARE THE ADVANTAGES OF MILEAGE OVER CAR LOANS?
Feature End User
Mileage Can be used for multiple purposes
Car Loan Loan only for purchase of a car You can withdraw only once at the start of the loan and have to pay fixed EMI each month
Flexibility of use
You and withdraw fund as and when required and repay as and when you want, subject to minimum payment of 5% of the amount outstanding.
Interest Charged
Interest outflow only on utilization
Fixed interest outflow commitments
Post dated cheque
No post dated cheques to Repayment has to be be given by the customer towards repayment done through post dated cheques given upfront Fixed installment
Repayment amount
Based on ability each month (subject to minimum of 5% due every month)
Part payment
Possible (subject to a minimum of 5% due
No part payment is allowed
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every month) Cash limit 100% of the credit limit can be withdrawn as cash Other facility ATM card and multi city cheque book. Deposit free funds in the account and reduce interest outflow for even one day Can reuse the limit after repayment No such facility No such facility to park free funds temporarily Cannot reuse the limit after repayment Only for a car loan. No cash limit
WHAT ARE THE BENEFITS OF MILEAGE OVER CREDIT CARDS AND PERSONAL LOANS?
Feature End User
Mileage Can be used for multiple purposes
Car Loan Can be used for multiple purposes You and can use credit limit as and
Personal Loan Can be used for multiple purposes You and withdraw only once at the
Flexibility of use
You and withdraw fund as and when required and
when required and start of the loan,
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repay as and when you want, subject to minimum payment of 5% of the amount outstanding. repay as and when you want, subject to a minimum amount due each month (5% of limit used and interest accrued). Interest Charged Interest outflow only on utilization Interest outflow only on utilization Fixed Interest outflow, commitment Post dated cheque No post dated cheques to be given by the customer towards repayment Repayment amount Based on ability each month(subject to minimum of 5% due every month) Part payment Possible(subject to a minimum of No post dated cheques to be given by the customer towards repayment Based on ability each month(subject to minimum of 5% due every month) Possible No part payment is allowed Repayment has to be done through post dated cheques given upfront Fixed installment and have to pay fixed EMI each month.
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5% due every month) Cash limit 100% of the credit limit can be 30-40% of the credit limit is cash No cash limit
withdrawn as cash limit. Use cash limit leads to transaction fees being imposed. Other facility ATM card and multicity chequebook. Park free funds in the account and reduce interest outflow for even one day Can reuse the limit after repayment Credit Card. Park free funds in the account and reduce interest outflow for even one day Can reuse the limit after repayment No such facility No such facility to park free funds temporarily Cannot reuse the limit after repayment
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WHAT IS THE TENURE FOR THE OVERDRAFT FACILITY?
The overdraft facility is given for a period of one year and can be renamed for two more years. The renewal is at the sole discretion of the bank.
WHO IS THE TARGETED CUSTOMER? Salaried and self employed individuals include sole proprietors, partners in partnership firm Customers with repayment track record from approved financiers serving as a surrogate of ability to pay
CAR TARGET Car eligible for mileage Maruti 800, Omni, Zen, Alto, Wagon R, Esteem, Santro, Tata Indica, Tata Sumo, Tata Indigo, Opel Corsa (Only privileges @ 50%), Ford Icon, Maruti Baleno, Accent, Mitsubishi Lancer, Honda City, Toyota Qualis, Fiat Palio, Scorpio, Toyota Camry, Toyota Corolla etc.
Cars which cannot be financed in mileage
Fiat Uno, Opel Astra,
Matiz, Cielo, Tata Safari, Ambassador, Sienna, Sumo, Tata Spacio, Mercedes etc.
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Travel profiles, tourist board Registration vehicle cannot be financed.
Used cars we fund upto fourth owner of a car subject to 5% less than normal funding.
Age norms: Salaried=>21 to 60 yrs. Self Employed=>21 to 68 yrs (Customers age not to exceed 72 yrs after taking 3 years Mileage Tenor into account).
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VARIOUS SCHEME S UNDER MILEAGE 1. VANILLA Income based Program .
Funding: 60% for premium (C) segment. 65% for A & B segment. Rate of interest : 18 % Eligibility : Number of year at work should be 2 year. Annual income must be more than Rs.60, 000/For salaried minimum exposure is Rs.50, 000/For salaried maximum exposure is Rs. 5 lacs.
For self-employed maximum exposure is Rs.7 lacs. For self-employed minimum exposure is Rs. 50.000/Maximum number of cars for salaried 2. (No change in total loan eligible) Maximum numbers of cars for self employed 3
Limit multiple: For salaried annual income into 1. For self employed annual income into 2. Co-applicant: For salaried & self-employed customers co applicant can be taken to increase the income eligibility or to meet the income eligibility. If the co applicant is taken to increase the income eligibility then one of the two-borrower income should be 60,000/- or sum of both the income should be more than or equal to Rs 1,00000/The Co-applicant can be blood relative or spouse. Debit card will be issue only to the applicant. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 31
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A Salaried Employed of top 1500 companies. Loan to value 75% @ 16% p.a. Funding minimum 50,000and maximum 7 lacs. MUV all variants of Opel, Lancer not eligible. 2. PRIVILEGES Loan is given basis of customers auto repayment track with approved financiers. Loan to value: For A, B &C segments .80% Qualis 75% Lancer & Corsa 50% Rate of interest:: Up to 65% funding: 18% More than 65%: 19.5% Lancer & Corsa : 19.5% Eligibility: Loan should be 12 months on book or one advance EMI+12 Monts -For Qualis 50% tenure should be completed -Not More than 2 cheques bounce in last 12 months. Minimum for salaried: 50,000/- Maximum: 5 Lac. Minimum for self-employed: 50,000/- Maximum: 10 Lac. Maximum numbers of cars: Salaried-2. Self employed-3. Co-applicant for privilege has to be joint account holder with applicant/
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For terminated loans: Loan completed less than 24 months, then last 12 months track is required. -Loan completed before 24 months, and then last 12 months track with latest Income proof will be considerable. Privileges - 100% loan to value for salaried. Target segment - salaried employee of top 1500 companies. 100% loan to value. SCB / Non SCB approved financier track record with >= 12 MOB or 50% tenor whichever is higher require for eligibility. Normal pricing will be applied for such loans. Valuation compulsory for cars. Applicants to be never 30 dpd in the last 12 months to avail the privileges offer. MUVs / all Opel cars (opetra allowed) / Lancer to be excluded from the program. Segment D&E cars to include - Opel Opetra / Corolla / Skoda / Honda Accord ? honda CRV / Sonata. Negative areas and / or negative profiles / caution profiles excluded from the program. Under privileges Pre approved program repayment track record to be on file-without exception. KYC documentation is mandatory. Verification as per current applicable.
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OBJECTIVE OF THE STUDY
The study was designed and conducted to accomplish the following objectives:
1. To find out brand awareness about Mileage . 2. To know about decision makers. 3. To analyze the market potential of the product Mileage . 4. To check the satisfaction level of existing customers. 5. To know about customer preference.
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RESEARCH METHODOLOGY
Meaning of Research:
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an act of scientific investigation. The advanced learner s Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a systematized effort to gain new knowledge.
Objectives of research: The purpose of research is to discover answer to questions through the application of scientific procedures. Through each research study has its own specific purpose, we may think of research objectives as falling into a number of following groups: To gain familiarity with a phenomenon or archive new insights into it. To portray accurately the characteristics of a particular individual, situation or a group. To determine the frequency with which something occurs or with which it is associated with something else. To test a hypothesis of a casual relationship between variables. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 37
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Research methodology:
Research methodology is a way to systematically solve the research problem. It may be understood as science of studying how research is done scientifically. In it we study various steps that are generally adopted by a researcher in studying his research problem along with logic behind them.
Research process: Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of research process. Research process consist of a series of action or steps necessary to effectively carr out research and the desires sequencing of these steps. The following order concerning various steps provides a useful procedural guideline regarding the research process: Formulating the research problem. Extensive literature survey. Development of working hypothesis. Preparing the research design. Determining sample size. Deliberate sampling. Simple random sampling. Systematic sampling. Stratified sampling. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 38
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Quota sampling. Cluster sampling and area sampling. Multi stage sampling.
Sequential sampling.
Collecting the data. By observation. Through personal interview. Through telephone interview. By mailing of questionnaires. Through schedules. Execution of the project. Analysis of data. Hypothesis testing.
Generalization and interpretation. Preparation of the re port or the thesis.
Types of Research: Descriptive research. Analytical research. Applied research. Fundamental research. Quantitive research. Qualitative research. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 39
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Conceptual research. Empirical research.
The above mentioned are the various type of research which a researcher can apply in order to achieve one s desired objective. Therefore to achieve the objectives of my research I have used descriptive research.
This is based on proper Research design to meet the objectives of the study. Sampling
It involves procedures that use a small part of population to make conclusion regarding the whole population.
Sampling plan for the project.
Geographical / sample area: pune Sampling unit: Corporate offices and local residential areas.
Sample size:
300
Sample procedure:
Non probability purposive sampling
DATA COLLECTION _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 40
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The project was to check feasibility of the services offered by Standard Chartered using both primary and secondary data. The primary data was obtained through observation, direct communication with the people and filling up of questionnaires, also enormous help was o0btained from Standard Chartered, branch seniors and colleagues working there.
The secondary data was collected through the Internet Journals, newspapers & Magazines
FIELD WORK PLAN
The field work was carried according to the sampling plan formed, by visiting the offices and small business enterprises/firms under some limitations and time constraints. The main motive for these visits was to identify the potential customers or the potential market. A two-way discussion was done which the customers were made aware of the services of Standard Chartered. The questionnaires are either directly filled up or indirectly filed up by the people and through this the prospect of the areas where these campaigns were put up.
DATA COLLECTION TOOL
The data collection tool that I have used is
Questionnaire. I have selected questionnaire as a data collection tool primarily
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because of descriptive nature of sampling & secondly it was the most suitable tool that could help in achieving all the objectives of the study.
LIMITATIONS Public happens to be a little hesitant in disclosing their financial dealings with everyone. Moreover, people are mush more conscious and are of view that they have enough knowledge of the products and services provided by the various banks. On the other hand, people banking with their own banks for 15 to 20 years are more loyal and are less susceptible to switch over to Standard Chartered. Here they are being provided with all the facilities. They do not try to break up their long lasting relationship. Thus, to change mindset of the customer requires a lot of time and cannot be done easily. The other major drawback is that the accounts personnel are not ready to give much information about customers banking with them. They would not talk about investments made by the CEOs, MDs etc. As far as the corporate level is concerned, they are still more comfortable to share information. The aim of the research was to check the feasibility of the prod services provided by Standard Chartered Bank on the basis of primary and secondary data and also to check the awareness of the services offered by the same and analyze the data available with the help of various statistical methods.
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1. AWARENESS ABOUT MILEAGE The study suggests that awareness level about mileage among the car owners is very low.
AWARE ABOUT MILEAGE Yes No
No. Of People 32% 68%
AWARENESS ABOUT MILEAGE
0% 32%
Yes 68% No
Interpretation
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68% people do not know about Mileage and its features, most of the people who know about mileage know it as they are existing customers of Standard Chartered.
SHOP OWNER BUSINESSMAN (OWNER OF SSI,s) EMPLOYEED (PVT. SECTOR) GOVT. EMPLOYEES PROFFESIONALS (Doctors, Lawyers, CAs etc) If awareness level increases market share is likely to increase.
36% 24% 18% 16% 6%
2. Outcome of the survey to find out the break down of existing customers according to Profession
% BREAK DOWN OF EXISTING CUSTOMERS
40 30 20 10 0 36 24 18 16 6 BUSINES SMAN EMPLOY EED GOVT.EM PLOYEES PROFES SIONALS SHOP OWNER
Interpretation
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The above analysis reveals the fact that out of maximum of the masses Shop owners and owners of small scale industries are mostly interested as they require money for short term. Salaried people are also very interested as it gives them an immediate source of money at the time of urgency.
3. Satisfaction Level of the existing Mileage customers
Response VERYSATISFIED SATISFIED DISSATISFIED
No. Of People 14% 68% 18%
80% 70% 60% 50% 40% 30% 20% 10% 0% VERYSATISFIED SATISFIED DISSATISFIED
Interpretation
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68% of the sample from existing customer is satisfied, where as 14% customers are very satisfied while 18% people are dissatisfied. Majority of dissatisfied customers are from the business class, they want prompt service. Interaction with employees is a major reason behind the large number of satisfied customers. 4. Percentage break down for people according to their profession in case of emergency requirement of money.
Source of funds Friends/Relatives O.D. Personal Borrow Others Loans Profession SHOP OWNER BUSINESSMAN (OWNER OF SSI s) EMPLOYEED (PVT. SECTOR) GOVT. EMPLOYEES PROFFESIONALS (Doctor s, Lawyer s, CA s, etc. ) 28 37 1 22 72 52 20 1 20 35 50 18 1 26 40 24 10 53 70 3 1 from market 65 80 29 18
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100 Value (in %) 80 60 40 20 0
.D . t ar ke an er s es s ds so fr o
SHOP OWNER
BUSINESSMAN (OWNER OF SSI,s)
EMPLOYEED (PVT. SECTOR)
GOVT. EMPLOYEES
PROFFESIONALS (Doctors, Law yers, CAs etc)
/R el at iv
O
Lo
m
na l
Fr ie n
Pe r
Profession
Interpretation Most of the Business man be it shop keepers or owners of SSI s rely on O.D. and borrowing from the market. However most of the service class people and professionals rely on friends & family and other sources. The other sources are Breaking a bank F.D. Taking money out of P.F Selling shares or bonds Credit Cards No one would like to break a F.D. which has matured for eight years for a urgent need & the sum of money he can pay back in a month or two. These are the people who could be targeted for Mileage.
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Bo r
ro w
m
O
th
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5. Percentage break down of people who are interested in subscribing for an O.D. product like Mileage.
INTERESTED Yes No
No. Of People 65% 35%
35% Yes No 65%
Interpretation Mostly people get attracted to the product but are not aware about the utility and the features. Increase in awareness level about the product will result in increased customer base. The people who show no interest is because they are suspicious about the product and company. Most people are not interested in dealing with a new bank that too private sector.
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6. Market share for Car based O.D. product in the sample
Name of Product Mileage ICICI Car O.D. HDFC
No. Of People 70% 22% 8%
No. Of People
8% 22%
Mileage ICICI Car O.D. 70% HDFC
Interpretation Mileage is the market leader with 70% market share, though the share of ICICI is increasing fast. Hence if market size increases it will be the maximum gainer
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SWOT ANALYSIS
STRENGTH Limited competition. Good reputation of the bank. Quality of service. Highly cooperative and efficient DST. Experience of 150 years. Exclusive Products. Use of modern technology like Tele Banking, ATMs etc, which makes service delivery faster. Wide range of services and product to suit all customer segments. Operational efficiency
WEAKNESS Target customer base very small. No presence in semi urban sector. Promotional campaigns are nearly absent. Poor advertising. Less number of ATM s and Branches (In PCMC area). High interest rates.
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OPPORTUNITIES Can build a strong distribution network in semi urban cities to trap the untouched market. Customer education will improve the customer base. Increasing awareness will result in increase in customer base. None of the players in the market is concentrating on this category of the product. No of car drivers is increasing very fast, especially with IT boom Pune has high potential.
THREATS Competition with big giants like ICICI and HDFC. Spread of risk. Challenges posed by other companies in the market. Overdraft rates have gone high. Lower customer base may hinder prompt service.
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FINDINGS
From the analysis of the data I collected during the study I present following findings Awareness level about Mileage among the existing customers is high but the conversion rate is low. Awareness level about Mileage among other target customers is very low. There is lack of awareness about the Car O.D. concept. Satisfaction level of existing customers is satisfactory, however business class people want more prompt service. Business class people mainly rely on O.D s and borrowing from the market. Working class and professional normally rely on friends/ relatives and other sources funds such as credit cards. There is a huge potential for the product Mileage among all profession groups, how ever Car O.D. is thought to be costlier then Credit cards. Most of the customer who refuse to go for Mileage and go for other car O.D. products cite less number of branches and ATM s as primary reason.
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RECOMMENDATIONS
From the study I have conducted and knowledge I have acquired from it, I recommend following improvements: Setting of more branches in the remote areas as there is only one branch in Pune where as the closest rival ICICI bank has eight branches. Opening more ATM centers as it has only three, where as ICICI has thirty ATMs. Awareness level about the product should be increased and the myth that Car O.D. are costlier and are just marketing gimmick must be broken. There should be promotional campaigns at public places like malls and fairs. There is absolutely no focus on advertising, advertising through local media and news papers should be done. More importance should be given to increase customer base. Speed to deliver service should be increased by having streamlined processes. Tele calling and hoardings should be used to increase the brand reorganization and benefit realization. Sales teams need to be trained better to deliver a superior performance.
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BIBLIOGRAPHY
Marketing Research by M.V. Kulkarni Research Methodology, methods and techniques by C.R.Kothari-2nd edition. Mileage Brochures. Marketing Management by Philip Kotler- 11th edition. Marketing Management by Ramaswamy and Namakumari-2nd edition. Website (www.standardchartered.co.in)
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QUESTIONNAIRE
NAME: PROFESSION INCOME GROUP CAR _________________________________ _________________________________ ________________________________ ________________________________
Have you taken loan to purchase the car? Yes No If Yes. Is it lying or terminated Lying Terminated
Have you subscribed for any over draft facility against you car? Yes If Yes, which one Mileage HDFC Car O.D. Have you heard of Mileage before Yes No ICICI Car O.D. No
If Yes, from where did you know about it Sales Executive E mail Advertising Tele Calling Bank Employees Other Source ____________________________
If you are a existing customer. How satisfied you are Very Satisfied Dissatisfied Satisfied
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Have you dealt with Standard Chartered before? Yes How will you rate the service level? Good Average Bad No
How will you rate the interaction with employees? Good Average Bad
When you require money in emergency what sources do you rely? Friends/ Relatives Personal loan O.D. Borrow money from Market
Other ____________________________________
Would you like to subscribe for an O.D. instrument like Mileage ? Yes No
If No Why? ______________________________________________________
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This document was created with Win2PDF available at http://www.daneprairie.com. The unregistered version of Win2PDF is for evaluation or non-commercial use only.
doc_309422097.pdf
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation.
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CERTIFICATE
This is to certify that Mr. Balram Sharma has successfully completed his project, titled Market Survey of Customer Satisfaction On Mileage Project at Standard Chartered during the academic year 2004-2006 for partial fulfillment of Master of Business Administration (M.B.A) from Vishwakarma Institute of Management under our guidance.
(Dr. Sharad L. Joshi) Director, V.I.M
(Prof. Rajesh Vhatkar) Project Guide
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A PROJECT REPORT ON
Market survey of customer satisfaction on mileage product
FOR
Standard Chartered Finance Limited
At Pune
Submitted in the Partial Fulfillment of the Requirement of Course Master of Business Administration
(SESSION 2004-2006)
Submitted by Balram Sharma Guide Prof. Rajesh Vhatkar Vishwakarma Institute of Management Pune
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| Mileage | ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person at the right time. Success of a project is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most valuable professional guidance. This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provide me with the necessary recourses and atmosphere conductive for healthy learning and training. At the outset I would like to take this opportunity to gratefully acknowledge the kind and patient guidance I have received from my project guide Mr. Ram S Patil (Branch Manager) and Mr. Amar A Shah (Sales Officer) without his critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. In addition, my internal guide Prof. Rajesh Vhatkar has critically evaluated my each step in developing this project report. I would like to extend my gratitude toward Dr. Sharad L. Joshi, Director, Vishwakarma Institute of Management, for his technical and moral support required for the realization of this project report. Lastly, I would like to thank all the members of STANDARD CHARTERED, and my colleagues who gave me fruitful information to finish my project.
BALRAM SHARMA
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TABLE OF CONTENTS
CHAPTER NO
TITLES Executive Summary Introduction
PAGE NO
1. 2. 3. 4. 5. 6. 7. 8. 9.
Company Profile Product Profile Objective Research Methodology Analysis Findings Recommendations Bibliography Annexure
13 19 35 37 44 54 56 58 60
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EXECUTIVE SUMMARY
With the radical changes in the new era of Banking, General Public is becoming more and more conscious of the services and facilities the different banks are providing. Banks have also started moving towards the retailing segment to improve their deposit portfolio. The delivery channel has also been shifted from braches to ATMs, phone banking, Internet banking etc. Sales promotion has also been used to position the product correctly and to increase its image in the eyes of the customers. Several methods are being used like day-to-day promotional activities such as discounts, offers, loans, trade promotion, and other promotional activities and so on. In the successive parts of the project, we will be talking about organization, its past history, present scenario, and future plans. We will be discussing about the special services (Mileage) provided by the Standard Chartered . In brief the whole project can be glanced in the following sub parts.
TITLE Market Survey of Customer Satisfaction on Mileage Product Awareness of the Services offered by Standard Chartered Bank.
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INTRODUCTION The study was conducted to increase the brand awareness & know the customers perception about the car O.D. product Mileage offered by Standard Chartered Finance Limited.
Introduction also contains: Industry Profiles: In industry profiles the development of banking sector from past to present has been discussed.
Company profile: In the company profile, the history and current scenario of Standard Chartered bank have been described in length.
Service and Product Profile: In this we will talk about the special product mileage by Standard Chartered Bank.
OBJECTIVE Under this heading the different objectives have been stated which are as follows: 1. To find out brand awareness about Mileage . 2. To know about decision makers. 3. To analyze the market potential of the product Mileage . 4. To check the satisfaction level of existing customers. 5. To know about customer preference. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 7
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RESEARCH METHODOLOGY The research methodology used was descriptive research. The sample size was 300 respondents and the sampling procedure used is Non Probability purposive sampling . Details about the data collection methods and sampling units could be seen under the heading Research Methodology. ANALYSIS Under this part the different analysis have been done such as: Analysis of data collected The study shows that the awareness level about the
product overall is not so good, how ever with existing customer s of Standard Chartered it is at a satisfactory level. The potential of the product Mileage is very high. For details see Analysis S.W.O.T. Analysis The SWOT analysis suggests that the good reputation of the
bank and exclusive nature of product along with experience and market share for car O.D. products are the major strengths. And the lack of a distribution network along with poor advertising and less number of ATM s and branches are major weaknesses. Lower customer base and big competitors are some of the threats and low market penetration in semi urban areas provide excellent growth opportunities.
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FINDINGS There is lack of awareness about the Car O.D. concept. Satisfaction level of existing customers is satisfactory, however business class people want more prompt service. Business class people mainly rely on O.D s and borrowing from the market. Working class and professional normally rely on friends/ relatives and other sources funds such as credit cards. There is a huge potential for the product Mileage among all profession groups, how ever Car O.D. is thought to be costlier then Credit cards. Most of the customer who refuses to go for Mileage and go for other car O.D. products cites less number of branches and ATM s as primary reason.
RECOMMENDATIONS More branches and ATM s should be opened to leverage upon the good will and the experience of the bank. Attention should be given on advertising and promotional campaigns. Speed of delivery should be improved. Sales teams should be properly trained and used.
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INTRODUCTION
Standard Charted Bank has been established for over 150 years. It spans the developed and emerging economics of the world with a network of over 500 offices in more than 50 countries. This study aims at creating and analyzing brand awareness among the target customers about the product Mileage offered by Standard Chartered Finance Limited. As the awareness level and market penetration for Car O.D. products is very low in India, the company aims at gaining a greater market share by providing efficient and fast service and by creating awareness about Mileage. People usually rely on bank limits i.e. bank O.D. for their needs but for small business man and officials having a high bank limit is difficult. The company aims to target these customer groups & offer innovative products that serve their needs fast and efficiently.
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COMPANY PROFILE
Overview Standard Chartered is the world s leading emerging markets bank. Its headquarter is in London. Its business however has always been overwhelmingly international. It employees 30,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, Middle East, Africa, United Kingdom and the Americas. It is one of the world s most recognized banks, with a management team comprising 70 nationalities.
The bank serves both consumers and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The wholesale bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody leading, foreign exchange and interest rate management and debt capital markets. With nearly 150 years in the emerging markets, the banks has unmatched knowledge and understanding of its customers in its markets. The bank is trusted across network for its standard of governance and its commitment to make a difference in the community in which it operates.
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A summary of the events in the history of Standard Chartered Standard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard Bank of British South Africa and The Chartered Bank of India, Australia and China. Of the two banks, The Chartered Bank is the older one has been found in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the world s pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in south Africa and had become a successful merchant. Both banks were keen to capitalize on the expansion of trade between Europe, Asia, Africa and to reap the handsome profit to be made from financing the trade. The Chartered bank open its first branch in 1858 in Chennai and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861, the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly producing rubber and tin industries in Malaysia. In 1862, The Chartered bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th century. Over the following decade both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, and
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Malaysia. Today Standard Chartered is still one of the three banks which print Hong Kong s bank notes. Standard Chartered PLC In 1969 the decision was made by the Standard Bank and the Chartered Bank to undergo a friendly merger thus forming standard Chartered PLC. It was one year later that the descendants of the Chartered Bank of India, Australia and China were finally permitted to open a representative office in Sydney, Australia. Standard chartered subsequently acquired the UK based Hodge Group, in which it already had a minority shareholding, and the Wallace Brothers Group. The Hodge Group brought to Standard Chartered an extensive network of UK offices specializing in installment credit and industrial leasing and after a period of rationalization its name was changed to Chartered Trust limited. Standard Chartered operations in Jersey emerged from the integration of other Hodge Group Business with those of Wallace Brothers Bank (Jersey), Limited. Standard Chartered decided, after a merger, to expand the Group outside its traditional markets. In Europe a number of offices were opened including Austria, Belgium, Denmark, and Ireland, Spain and Sweden as well as several major cities in the UK. Standard Chartered also opened offices in Argentina, Canada, Colombia, the Falkland Islands, Panama and Nepal. In the USA, a number of offices were opened and three banks were acquired. These included the Union Bank of California which gave Standard a Chartered a presence in Brazil and Venezuela. The opening of a branch in Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyds bank of the UK made a hostile take-over bid
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for Standard chartered. Standard Chartered won its right to remain independent but entered i8nto a period of considerable change. By the late 1980s Standard Chartered already had considerable exposure to third world debt. To this were added provisions against loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered reviewed its operations and decided to focus on its core strengths of Consumer Banking, Corporate & Institutional Banking and Treasury in its well-established operations in Asia, Africa and the Middle East. This led to a series of divestments notably in Europe, the United States and Africa. During this time staff numbers were reduced, businesses not considered core, were sold or closed, associate holding disposed of, unprofitable branches closed and back office functions consolidated. In addition expensive buildings were sold with the proceeds reinvested in the business, and the senior, management team was radically changed and strengthened.
Standard Chartered in the 1990s Even within this period of apparent retrenchment Standard Chartered expanded its network, re-opening in Vietnam in 1990, Cambodia and Iran in 1992, Tanzania in 1993 and Myanmar in 1995. With the opening of branches in Macau and Taiwan in 1983 and 1985 plus a representative office in laos (1996) Standard Chartered now has an office in every country in the Asia Pacific Region with the exception of North Korea. In 1998 Standard Chartered concluded the4 purchase of a controlling interest in Banco Exterior de los Andes extebandes) an Andean region bank
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involved primarily in trade finance. With this purchase Standard Chartered now offers full banking services in Colombia, Peru and Venezuela. In 1999, Standard Chartered acquired the global trade finance business of Union Bank of Switzerland. This acquisition makes Standard Chartered one of the leading clearers. There is, of dollar payments in the USA. Standard Chartered also opened a new Subsidiary, Standard Chartered Nigeria Limited in Lagos, acquired 75 per cent of the share capital of Metropolitan Bank of the Lebanon.
Standard Chartered current scenario Today Standard Chartered is the world s leading emerging markets bank employing 30,000 people in over 500 offices in more than 50 countries primarily in countries in the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas. The new millennium has brought with it two of the largest acquisition in the history of the bank with the purchase of Grindlays Bank from the ANZ Group and the acquisition of the Chase Consumer banking operation in Hong Kong in 2000. These acquisitions demonstrate Standard Chartered firm commitment to the emerging markets, where we have a strong and established presence and where it sees its future growth. It is listed on both the London stock exchange and the stock exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalization.
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MILEAGE
The documentation for the Mileage proposal is divided into 3 parts . 1. KYC (Account Opening) Document. 2. RTO Documents. 3. Scheme Documents.
1. KYC (ACCOUNT OPENING) DOCUMENTS Here we needs IAS (Identity, Address & Signature verification) Documents
For IDENTITY 1. Permanent Account Number (PAN) Card. 2. Driving License. 3. Passport 4. Voters ID Card 5. Any Govt Dept ID Proof For RESIDENTIAL ADDRESS 1. Electricity Bill 2. Telephone. Mobile, WLL Bill 3. Ration Card 4. Passport 5. Driving license 6. Life/Medical Insurance Policy 7. Voters Identity Card _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 19
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8. Municipal Tax/Water Tax Bill
FOR SIGNATURE VERIFICATION 1. Permanent Account Number (PAN) Card. 2. Driving License. 3. Passport 4. Signature Verification from the Bank where applicant is holding saving, current or cash credit account.
FOR ACCOUNT TO BE OPEN IN THE NAME OF FIRM We can open account on the proprietorship, and partnership and Private Limited Companies names ..
FOR PROPRIETORSHIP FIRM 1. Shops and Establishment Certificate 2. Sales Tax Registration Certificate 3. Bank Statement of Firm account for the last 6 months and Business Verification 4. SEBI Registration Certificate 5. Importer-Exporter Code Certificate + PAN proof OF proprietor
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FOR PARTNERSHIP FIRM 1. Registered Partnership Deed 2. Sales Tax Registration Certificate 3. Bank Statement of Firms account + Banker Verification of signature 4. Importer-Exporter Code Certificate 5. Shops and Establishment Certificate 6. A Utility Bill in the name of firm with name and address match with AOF
FOR RESIDENT (PVT.LTD.) COMPANIES 1. MOA & AOA & True copy of Certificate of Registration 2. True Copy and Extract of Board Resolution 3. List of Shareholders who hold more over 20% 4. Bank Statement of Firm account for the last 6 months + Banker Verification of signature 5. SEBI Registration Certificate 6. Sales Tax Registration Certificate & Shops & Establishment Certificate
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| Mileage | WHAT IS MILEAGE?
1. You can withdraw funds from your mileage account up to the sanctioned limit, by cheque or Debit card. 2. The amount withdrawn each time reduces available limit. 3. Limit available increases on payments into the account, and or payment of the minimum amount due each month. 4. Therefore, Credit Line revolves according to withdrawals and payments.
WHAT IS REVOLVING CREDIT ? 1. You can withdraw funds from your mileage account up to the sanctioned limit, by cheque or Debit card. 2. The amount withdrawn each time reduces available limit. 3. Limit available increases on payments into the account, and or payment of the minimum amount due each month. 4. Therefore, Credit Line revolves according to withdrawals and payments.
PRODUCT FEATURES: Cash Overdraft from 60% to 80% of assessed value of car less than 8 years old. Interest outflow only on utilization, no fixed monthly installment, no post dated cheques. Free end use of facility, limit can be reused basis repayment made, Part payment at will.
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A Zero balance current or saving account in Standard Chartered Bank, get multi city cheque book and Debit card. Repayment: Customer will have the flexibility of paying the entire Outstanding lump sum or repaying the minimum 5% outstanding billed each month. Cheque Drop Box: Cheque Drop Boxes are placed at convenient location; customers can use those Drop Boxes to drop their repayment cheque.
HOW CAN WE USE MILEAGE? Get revolving credit to meet any need, with your car as security. Use The Funds For : 1. Working capital requirements. 2. As a personal loan without the post dated cheques. 3. For unforeseen exigencies. 4. For a holiday 5. For renovation of the house. 6. For your child s education. 7. To buy a consumer durable 8. For any other purpose of your choice WHAT ARE THE BENEFITS OF MILEAGE? Revolving credit facility, with repeated usage of money. The entire credit limit can be withdrawn in cash. Multi-city cheque books on request at no extra cost. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 23
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Monthly statement of account on credit limits utilization. 1. Account statements with minimum amount due and due date details. 2. Interest calculation sheet with details of dateless balances, interest-bearing balances, debit interest, and credit interest. Sent monthly, this helps you check how the interest was calculated. No charges if the auto overdraft facility is not used. Repayment flexibility, of minimum 5%of entire outstanding amounts every month. Interest charged only on debit outstanding, calculated on daily basis but charged on monthly basis. No charges if mileage facility for repayment cheques. 24 hour phone banking including queries on the mileage account. (Available in select cities) End use: can be used for multiple purposes. Flexibility of use: withdrawal and repayment. Interest charged: only on amount loan utilized. Post dated cheques : None Repayment amount: Flexible, minimum 5% of due every month. Pre-closure Charges: 5.51% of Sanctioned limit Rate of interest: 18% - 19.5% Cash limit: 100% of limit sanctioned
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WHAT ARE THE ADVANTAGES OF MILEAGE OVER CAR LOANS?
Feature End User
Mileage Can be used for multiple purposes
Car Loan Loan only for purchase of a car You can withdraw only once at the start of the loan and have to pay fixed EMI each month
Flexibility of use
You and withdraw fund as and when required and repay as and when you want, subject to minimum payment of 5% of the amount outstanding.
Interest Charged
Interest outflow only on utilization
Fixed interest outflow commitments
Post dated cheque
No post dated cheques to Repayment has to be be given by the customer towards repayment done through post dated cheques given upfront Fixed installment
Repayment amount
Based on ability each month (subject to minimum of 5% due every month)
Part payment
Possible (subject to a minimum of 5% due
No part payment is allowed
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every month) Cash limit 100% of the credit limit can be withdrawn as cash Other facility ATM card and multi city cheque book. Deposit free funds in the account and reduce interest outflow for even one day Can reuse the limit after repayment No such facility No such facility to park free funds temporarily Cannot reuse the limit after repayment Only for a car loan. No cash limit
WHAT ARE THE BENEFITS OF MILEAGE OVER CREDIT CARDS AND PERSONAL LOANS?
Feature End User
Mileage Can be used for multiple purposes
Car Loan Can be used for multiple purposes You and can use credit limit as and
Personal Loan Can be used for multiple purposes You and withdraw only once at the
Flexibility of use
You and withdraw fund as and when required and
when required and start of the loan,
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repay as and when you want, subject to minimum payment of 5% of the amount outstanding. repay as and when you want, subject to a minimum amount due each month (5% of limit used and interest accrued). Interest Charged Interest outflow only on utilization Interest outflow only on utilization Fixed Interest outflow, commitment Post dated cheque No post dated cheques to be given by the customer towards repayment Repayment amount Based on ability each month(subject to minimum of 5% due every month) Part payment Possible(subject to a minimum of No post dated cheques to be given by the customer towards repayment Based on ability each month(subject to minimum of 5% due every month) Possible No part payment is allowed Repayment has to be done through post dated cheques given upfront Fixed installment and have to pay fixed EMI each month.
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5% due every month) Cash limit 100% of the credit limit can be 30-40% of the credit limit is cash No cash limit
withdrawn as cash limit. Use cash limit leads to transaction fees being imposed. Other facility ATM card and multicity chequebook. Park free funds in the account and reduce interest outflow for even one day Can reuse the limit after repayment Credit Card. Park free funds in the account and reduce interest outflow for even one day Can reuse the limit after repayment No such facility No such facility to park free funds temporarily Cannot reuse the limit after repayment
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WHAT IS THE TENURE FOR THE OVERDRAFT FACILITY?
The overdraft facility is given for a period of one year and can be renamed for two more years. The renewal is at the sole discretion of the bank.
WHO IS THE TARGETED CUSTOMER? Salaried and self employed individuals include sole proprietors, partners in partnership firm Customers with repayment track record from approved financiers serving as a surrogate of ability to pay
CAR TARGET Car eligible for mileage Maruti 800, Omni, Zen, Alto, Wagon R, Esteem, Santro, Tata Indica, Tata Sumo, Tata Indigo, Opel Corsa (Only privileges @ 50%), Ford Icon, Maruti Baleno, Accent, Mitsubishi Lancer, Honda City, Toyota Qualis, Fiat Palio, Scorpio, Toyota Camry, Toyota Corolla etc.
Cars which cannot be financed in mileage
Fiat Uno, Opel Astra,
Matiz, Cielo, Tata Safari, Ambassador, Sienna, Sumo, Tata Spacio, Mercedes etc.
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Travel profiles, tourist board Registration vehicle cannot be financed.
Used cars we fund upto fourth owner of a car subject to 5% less than normal funding.
Age norms: Salaried=>21 to 60 yrs. Self Employed=>21 to 68 yrs (Customers age not to exceed 72 yrs after taking 3 years Mileage Tenor into account).
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VARIOUS SCHEME S UNDER MILEAGE 1. VANILLA Income based Program .
Funding: 60% for premium (C) segment. 65% for A & B segment. Rate of interest : 18 % Eligibility : Number of year at work should be 2 year. Annual income must be more than Rs.60, 000/For salaried minimum exposure is Rs.50, 000/For salaried maximum exposure is Rs. 5 lacs.
For self-employed maximum exposure is Rs.7 lacs. For self-employed minimum exposure is Rs. 50.000/Maximum number of cars for salaried 2. (No change in total loan eligible) Maximum numbers of cars for self employed 3
Limit multiple: For salaried annual income into 1. For self employed annual income into 2. Co-applicant: For salaried & self-employed customers co applicant can be taken to increase the income eligibility or to meet the income eligibility. If the co applicant is taken to increase the income eligibility then one of the two-borrower income should be 60,000/- or sum of both the income should be more than or equal to Rs 1,00000/The Co-applicant can be blood relative or spouse. Debit card will be issue only to the applicant. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 31
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A Salaried Employed of top 1500 companies. Loan to value 75% @ 16% p.a. Funding minimum 50,000and maximum 7 lacs. MUV all variants of Opel, Lancer not eligible. 2. PRIVILEGES Loan is given basis of customers auto repayment track with approved financiers. Loan to value: For A, B &C segments .80% Qualis 75% Lancer & Corsa 50% Rate of interest:: Up to 65% funding: 18% More than 65%: 19.5% Lancer & Corsa : 19.5% Eligibility: Loan should be 12 months on book or one advance EMI+12 Monts -For Qualis 50% tenure should be completed -Not More than 2 cheques bounce in last 12 months. Minimum for salaried: 50,000/- Maximum: 5 Lac. Minimum for self-employed: 50,000/- Maximum: 10 Lac. Maximum numbers of cars: Salaried-2. Self employed-3. Co-applicant for privilege has to be joint account holder with applicant/
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For terminated loans: Loan completed less than 24 months, then last 12 months track is required. -Loan completed before 24 months, and then last 12 months track with latest Income proof will be considerable. Privileges - 100% loan to value for salaried. Target segment - salaried employee of top 1500 companies. 100% loan to value. SCB / Non SCB approved financier track record with >= 12 MOB or 50% tenor whichever is higher require for eligibility. Normal pricing will be applied for such loans. Valuation compulsory for cars. Applicants to be never 30 dpd in the last 12 months to avail the privileges offer. MUVs / all Opel cars (opetra allowed) / Lancer to be excluded from the program. Segment D&E cars to include - Opel Opetra / Corolla / Skoda / Honda Accord ? honda CRV / Sonata. Negative areas and / or negative profiles / caution profiles excluded from the program. Under privileges Pre approved program repayment track record to be on file-without exception. KYC documentation is mandatory. Verification as per current applicable.
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OBJECTIVE OF THE STUDY
The study was designed and conducted to accomplish the following objectives:
1. To find out brand awareness about Mileage . 2. To know about decision makers. 3. To analyze the market potential of the product Mileage . 4. To check the satisfaction level of existing customers. 5. To know about customer preference.
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RESEARCH METHODOLOGY
Meaning of Research:
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an act of scientific investigation. The advanced learner s Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a systematized effort to gain new knowledge.
Objectives of research: The purpose of research is to discover answer to questions through the application of scientific procedures. Through each research study has its own specific purpose, we may think of research objectives as falling into a number of following groups: To gain familiarity with a phenomenon or archive new insights into it. To portray accurately the characteristics of a particular individual, situation or a group. To determine the frequency with which something occurs or with which it is associated with something else. To test a hypothesis of a casual relationship between variables. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 37
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Research methodology:
Research methodology is a way to systematically solve the research problem. It may be understood as science of studying how research is done scientifically. In it we study various steps that are generally adopted by a researcher in studying his research problem along with logic behind them.
Research process: Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of research process. Research process consist of a series of action or steps necessary to effectively carr out research and the desires sequencing of these steps. The following order concerning various steps provides a useful procedural guideline regarding the research process: Formulating the research problem. Extensive literature survey. Development of working hypothesis. Preparing the research design. Determining sample size. Deliberate sampling. Simple random sampling. Systematic sampling. Stratified sampling. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 38
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Quota sampling. Cluster sampling and area sampling. Multi stage sampling.
Sequential sampling.
Collecting the data. By observation. Through personal interview. Through telephone interview. By mailing of questionnaires. Through schedules. Execution of the project. Analysis of data. Hypothesis testing.
Generalization and interpretation. Preparation of the re port or the thesis.
Types of Research: Descriptive research. Analytical research. Applied research. Fundamental research. Quantitive research. Qualitative research. _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 39
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Conceptual research. Empirical research.
The above mentioned are the various type of research which a researcher can apply in order to achieve one s desired objective. Therefore to achieve the objectives of my research I have used descriptive research.
This is based on proper Research design to meet the objectives of the study. Sampling
It involves procedures that use a small part of population to make conclusion regarding the whole population.
Sampling plan for the project.
Geographical / sample area: pune Sampling unit: Corporate offices and local residential areas.
Sample size:
300
Sample procedure:
Non probability purposive sampling
DATA COLLECTION _________________________________________________________________________ VISHWAKARMA INSTITUTE OF MANAGEMENT 40
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The project was to check feasibility of the services offered by Standard Chartered using both primary and secondary data. The primary data was obtained through observation, direct communication with the people and filling up of questionnaires, also enormous help was o0btained from Standard Chartered, branch seniors and colleagues working there.
The secondary data was collected through the Internet Journals, newspapers & Magazines
FIELD WORK PLAN
The field work was carried according to the sampling plan formed, by visiting the offices and small business enterprises/firms under some limitations and time constraints. The main motive for these visits was to identify the potential customers or the potential market. A two-way discussion was done which the customers were made aware of the services of Standard Chartered. The questionnaires are either directly filled up or indirectly filed up by the people and through this the prospect of the areas where these campaigns were put up.
DATA COLLECTION TOOL
The data collection tool that I have used is
Questionnaire. I have selected questionnaire as a data collection tool primarily
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because of descriptive nature of sampling & secondly it was the most suitable tool that could help in achieving all the objectives of the study.
LIMITATIONS Public happens to be a little hesitant in disclosing their financial dealings with everyone. Moreover, people are mush more conscious and are of view that they have enough knowledge of the products and services provided by the various banks. On the other hand, people banking with their own banks for 15 to 20 years are more loyal and are less susceptible to switch over to Standard Chartered. Here they are being provided with all the facilities. They do not try to break up their long lasting relationship. Thus, to change mindset of the customer requires a lot of time and cannot be done easily. The other major drawback is that the accounts personnel are not ready to give much information about customers banking with them. They would not talk about investments made by the CEOs, MDs etc. As far as the corporate level is concerned, they are still more comfortable to share information. The aim of the research was to check the feasibility of the prod services provided by Standard Chartered Bank on the basis of primary and secondary data and also to check the awareness of the services offered by the same and analyze the data available with the help of various statistical methods.
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1. AWARENESS ABOUT MILEAGE The study suggests that awareness level about mileage among the car owners is very low.
AWARE ABOUT MILEAGE Yes No
No. Of People 32% 68%
AWARENESS ABOUT MILEAGE
0% 32%
Yes 68% No
Interpretation
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68% people do not know about Mileage and its features, most of the people who know about mileage know it as they are existing customers of Standard Chartered.
SHOP OWNER BUSINESSMAN (OWNER OF SSI,s) EMPLOYEED (PVT. SECTOR) GOVT. EMPLOYEES PROFFESIONALS (Doctors, Lawyers, CAs etc) If awareness level increases market share is likely to increase.
36% 24% 18% 16% 6%
2. Outcome of the survey to find out the break down of existing customers according to Profession
% BREAK DOWN OF EXISTING CUSTOMERS
40 30 20 10 0 36 24 18 16 6 BUSINES SMAN EMPLOY EED GOVT.EM PLOYEES PROFES SIONALS SHOP OWNER
Interpretation
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The above analysis reveals the fact that out of maximum of the masses Shop owners and owners of small scale industries are mostly interested as they require money for short term. Salaried people are also very interested as it gives them an immediate source of money at the time of urgency.
3. Satisfaction Level of the existing Mileage customers
Response VERYSATISFIED SATISFIED DISSATISFIED
No. Of People 14% 68% 18%
80% 70% 60% 50% 40% 30% 20% 10% 0% VERYSATISFIED SATISFIED DISSATISFIED
Interpretation
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68% of the sample from existing customer is satisfied, where as 14% customers are very satisfied while 18% people are dissatisfied. Majority of dissatisfied customers are from the business class, they want prompt service. Interaction with employees is a major reason behind the large number of satisfied customers. 4. Percentage break down for people according to their profession in case of emergency requirement of money.
Source of funds Friends/Relatives O.D. Personal Borrow Others Loans Profession SHOP OWNER BUSINESSMAN (OWNER OF SSI s) EMPLOYEED (PVT. SECTOR) GOVT. EMPLOYEES PROFFESIONALS (Doctor s, Lawyer s, CA s, etc. ) 28 37 1 22 72 52 20 1 20 35 50 18 1 26 40 24 10 53 70 3 1 from market 65 80 29 18
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100 Value (in %) 80 60 40 20 0
.D . t ar ke an er s es s ds so fr o
SHOP OWNER
BUSINESSMAN (OWNER OF SSI,s)
EMPLOYEED (PVT. SECTOR)
GOVT. EMPLOYEES
PROFFESIONALS (Doctors, Law yers, CAs etc)
/R el at iv
O
Lo
m
na l
Fr ie n
Pe r
Profession
Interpretation Most of the Business man be it shop keepers or owners of SSI s rely on O.D. and borrowing from the market. However most of the service class people and professionals rely on friends & family and other sources. The other sources are Breaking a bank F.D. Taking money out of P.F Selling shares or bonds Credit Cards No one would like to break a F.D. which has matured for eight years for a urgent need & the sum of money he can pay back in a month or two. These are the people who could be targeted for Mileage.
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Bo r
ro w
m
O
th
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5. Percentage break down of people who are interested in subscribing for an O.D. product like Mileage.
INTERESTED Yes No
No. Of People 65% 35%
35% Yes No 65%
Interpretation Mostly people get attracted to the product but are not aware about the utility and the features. Increase in awareness level about the product will result in increased customer base. The people who show no interest is because they are suspicious about the product and company. Most people are not interested in dealing with a new bank that too private sector.
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6. Market share for Car based O.D. product in the sample
Name of Product Mileage ICICI Car O.D. HDFC
No. Of People 70% 22% 8%
No. Of People
8% 22%
Mileage ICICI Car O.D. 70% HDFC
Interpretation Mileage is the market leader with 70% market share, though the share of ICICI is increasing fast. Hence if market size increases it will be the maximum gainer
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SWOT ANALYSIS
STRENGTH Limited competition. Good reputation of the bank. Quality of service. Highly cooperative and efficient DST. Experience of 150 years. Exclusive Products. Use of modern technology like Tele Banking, ATMs etc, which makes service delivery faster. Wide range of services and product to suit all customer segments. Operational efficiency
WEAKNESS Target customer base very small. No presence in semi urban sector. Promotional campaigns are nearly absent. Poor advertising. Less number of ATM s and Branches (In PCMC area). High interest rates.
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OPPORTUNITIES Can build a strong distribution network in semi urban cities to trap the untouched market. Customer education will improve the customer base. Increasing awareness will result in increase in customer base. None of the players in the market is concentrating on this category of the product. No of car drivers is increasing very fast, especially with IT boom Pune has high potential.
THREATS Competition with big giants like ICICI and HDFC. Spread of risk. Challenges posed by other companies in the market. Overdraft rates have gone high. Lower customer base may hinder prompt service.
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FINDINGS
From the analysis of the data I collected during the study I present following findings Awareness level about Mileage among the existing customers is high but the conversion rate is low. Awareness level about Mileage among other target customers is very low. There is lack of awareness about the Car O.D. concept. Satisfaction level of existing customers is satisfactory, however business class people want more prompt service. Business class people mainly rely on O.D s and borrowing from the market. Working class and professional normally rely on friends/ relatives and other sources funds such as credit cards. There is a huge potential for the product Mileage among all profession groups, how ever Car O.D. is thought to be costlier then Credit cards. Most of the customer who refuse to go for Mileage and go for other car O.D. products cite less number of branches and ATM s as primary reason.
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RECOMMENDATIONS
From the study I have conducted and knowledge I have acquired from it, I recommend following improvements: Setting of more branches in the remote areas as there is only one branch in Pune where as the closest rival ICICI bank has eight branches. Opening more ATM centers as it has only three, where as ICICI has thirty ATMs. Awareness level about the product should be increased and the myth that Car O.D. are costlier and are just marketing gimmick must be broken. There should be promotional campaigns at public places like malls and fairs. There is absolutely no focus on advertising, advertising through local media and news papers should be done. More importance should be given to increase customer base. Speed to deliver service should be increased by having streamlined processes. Tele calling and hoardings should be used to increase the brand reorganization and benefit realization. Sales teams need to be trained better to deliver a superior performance.
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BIBLIOGRAPHY
Marketing Research by M.V. Kulkarni Research Methodology, methods and techniques by C.R.Kothari-2nd edition. Mileage Brochures. Marketing Management by Philip Kotler- 11th edition. Marketing Management by Ramaswamy and Namakumari-2nd edition. Website (www.standardchartered.co.in)
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QUESTIONNAIRE
NAME: PROFESSION INCOME GROUP CAR _________________________________ _________________________________ ________________________________ ________________________________
Have you taken loan to purchase the car? Yes No If Yes. Is it lying or terminated Lying Terminated
Have you subscribed for any over draft facility against you car? Yes If Yes, which one Mileage HDFC Car O.D. Have you heard of Mileage before Yes No ICICI Car O.D. No
If Yes, from where did you know about it Sales Executive E mail Advertising Tele Calling Bank Employees Other Source ____________________________
If you are a existing customer. How satisfied you are Very Satisfied Dissatisfied Satisfied
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Have you dealt with Standard Chartered before? Yes How will you rate the service level? Good Average Bad No
How will you rate the interaction with employees? Good Average Bad
When you require money in emergency what sources do you rely? Friends/ Relatives Personal loan O.D. Borrow money from Market
Other ____________________________________
Would you like to subscribe for an O.D. instrument like Mileage ? Yes No
If No Why? ______________________________________________________
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