A Study Project Report: Consumer Behavior of HMT Machine Tools LTD
A Study Project Report: Consumer Behavior of HMT Machine Tools LTD
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PREFACE
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Theoretical knowledge without practical knowledge is of little value. In order to achieve
concrete and positive result along with theoretical concept the exposure of real life situation
existing in corporate is very much needed.
To fulfill this need the management course has a provision for the practical study program. I
thank my institute to provide us such opportunity having training period in our course so that
students can have real felling of industrial life.
My project study is based on Studying the Consumer Behavior of HMT machine Tools Ltd.
The objective of my study is to know the Consumer Preferences, its Loyalty towards the
company, to know the market awareness of consumers.
It was my fortune to get training in very healthy atmosphere. I got ample opportunity to views
the overall working of the evaluation of marketing program of HMT Machine Tools Ltd.
In the coming pages an attempt has been made to present a comprehensive report concerning
different aspects of Consumers Behavior.
Acknowledgement
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I am extremely grateful to the management of HMT Machine Tools Ltd. for giving me an
opportunity to pursue study at the company.
Which else Company could have given me the better knowledge than the leading Machine
Tool Company in the Nation.
It was really a great valuable period for me. First of all I would like to express my gratitude
towards to Miss Yamini Gupta who helped me a lot in completion of my study.
He was there to support me whenever I needed help at every point of my study. At the outset, I
would take this excellent opportunity to render my sincere gratitude to Mr. Naveen
Dhingra Manager Marketing Devision. It is because of his kind assistance that I was
able to complete this project successfully.
Last but not least I am grateful to all other members of the HMT family who guided me and
provided me all the necessary resources to complete my study without any difficulty and
made my Industrial study an experience memorable and success.
CONTENT
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Chapter-1: Company Profile
Chapter-4: Limitations
Chapter-5: Suggestions
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Chapter-1:
Company Profile
Profile
HMT as a brand is popular among the masses as a premium watch making company.
However, since its very inception, HMT Limited is into a lot of other things as well.
Over the years HMT, (as Hindustan Machine Tools is popularly known) has diversified into
watches, tractors , printing machinery, metal forming presses, die casting & plastic processing
machinery, CNC systems and bearings.
HMT has also been successful in absorbing technology in all product groups by collaborating
with recognized manufacturers from all over the world.
Moreover, Hindustan Machine Tools has also evolved through continuous in-house Research
and Development (R & D). Today,
Praga Tools Limited As a holding company, HMT Ltd. manages the tractors business
directly and entirely as it does with the 1st four companies of the following list. In case of the
last two, HMT enjoys a holding percentage of 97.25 and 51 respectively.
Besides, Hindustan Machine Tools Limited has 18 manufacturing units. HMT’s tractor business
commenced its operations in 1971 in technical collaboration with M/s Motokov of
Czechoslovakia. HMT started the operation with the manufacture of 25 horse-power tractor at
the manufacturing plant in Pinjore,Haryana.
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HMT Limited, the pioneer in Machine Tools Industry in India and manufacturers of a
diversified range of products has incorporated “HMT MACHINE TOOLS LIMITED” as its
fully owned subsidiary on 9th August 1999 .
“HMT MACHINE TOOLS LIMITED” (HMT-MTL) is a Multi unit, Multi location, Multi
technology Company manufacturing a wide variety of “STATE-OF-THE-ART” Machine
Tools.
HMT-MTL has its manufacturing units at Five locations with each unit specialized in a
particular family of Machines. The Sales and Service network is spread across the length
and breadth of the country.
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Today, HMT’s machine tool expertise has been developed to such an extent that HMT
Machine Tools Ltd. can design & develop any kind of machine, from simple lathes to multi
station transfer lines, from stand alone CNC machines to flexible manufacturing systems,
leading to factory automation. HMT’s broad range of machine tools covers General Purpose
Machines and CNC Machines to meet the application needs of every engineering industry.
Pioneering the concept of CNC technology in India, HMT has the distinction of being the very
first company to successfully manufacture its own CNC systems, in association with Siemens
of Germany.
Today, HMT is well positioned at forefront of the precision engineering field. Its manufacturing
plant employs a high skilled work force. Strongly supported by excellent in house R&D base,
HMT contributes to the technological advancement of Machine tools. To date, over 80,000
machine tools on par with international standards in quality and performance, manufactured by
HMT, are in use all over India. HMT is the largest unit in the industry with around 40% market
share. It employees over 4236 workers in total.
HMT have its manufacturing units at five locations with each unit specializing in a particular
family of machines/services. The Sales and Service network is spread across the length and
breadth of the country.
Quality
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While HMT Machine Tools builds robust machines to extracting specifications, HMT’s
sophisticated quality assurance facilities ensure products that are highly reliable and
dependable. All the HMT machine tools manufacturing units are ISO 9001 accredited and
are on a way of upgrading to ISO 9001-2000 accreditation.
HMT's Milestones
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VARIOUS UNITS & DIVISIONS OF HMT
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Vision and Mission
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• To establish as one of the world’s premier companies in the engineering field having
strong international competitiveness
• To achieve market leadership in India through ensuring customer satisfaction by
supplying internationally competitive products and services
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• To encourage the modernization of Indian Industry through the supply of engineering
goods and services of world class excellence
• To maintain technological leadership through continuous efforts to update product
technology and manufacturing methods
• To globalize our operations by developing a mix of international markets and
businesses
• To ensure a satisfactory return on capital employed, to meet the growth needs and the
aspirations of our stakeholders
• To present an active, pleasant and productive working environment
Corporate Vision:
Corporate Mission:
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To maintain technological leadership through continuous efforts to update product
technology and manufacturing methods
To globalize our operations by developing a mix of international markets and
businesses
To ensure a satisfactory return on capital employed, to meet the growth needs and the
aspirations of our stakeholders
To present an active, pleasant and productive working environment
Services Provided
Commitment
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Expectations from Customer
Business Strategy
The Company has developed a plan to restructure its operations by consolidating the
manufacture of certain products at certain locations based on the basic family of the machine
and thus creating ‘centers of excellence’ for a product. This will lead to greater synergy in
production, planning and marketing.
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Increased research and development
HMT-MT considers R & D as its significant strength. The R & D department provides in-
house support to operations and development of new products with focus on technology
absorption, improved designs, cost reduction in various plants, improvement of yield,
quality of end products, reduction of wastes, etc. HMT-MT has been a leader in
developing innovative solutions for the manufacturing sector for the past 5 decades.
Exploiting its large domestic sales and support network to increase market share
HMT-MT believes that its extensive national marketing, sales and support network, with
its focus on customer service, product quality, and reliability of supply, provides the
Company with a significant competitive advantage over its competitors. The Company
proposes to significantly increase the market penetration of its products by leveraging
this extensive sales and support and distribution set-up.
ORGANISATIONAL STRUCTURE
HMT has three-tier structure of management. At the top is the council of Boards, which
contains in addition to the Chairman and Managing director and full time functional Directors
entrusted with finance and corporate planning, Personnel Director, Marketing , and also two
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senior Executive Director who are the Chief Executive of tools HMT plants in additions to these
directors, the Corporate Board has three representatives of labor.
Each unit also has separate Board of Management, chaired by its General Manager and
staffed by the heads its functional departments.
This board is the unit Board meets every month for reviewing decisions to fulfill the roles of the
unit to achieve the corporate objectives.
In between the two in the committee of management which may rightly be termed as the real
working board of the enterprises. The internal members being the functional Directors and the
Company Secretary .
The Executive Committee of management is presided over by the Chairman and Managing
Director. It meets every month to review the performance of each unit and to resolve the
problems which are beyond the competence of the units.
Both the units are controlled by the General Manager. The General Manager (HRM) is the
overall in charge of matters relation to the personal and Industrial relations of both the
divisions.
Marketing department of Machine Tool division and Tractor division is headed by the Joint
General Manager and Deputy General Manager respectively and assisted by the following
staff. Sharing the chain of responsibility of the respective departments:-
h) Personal GM(HRM)
PRODUCTS
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Machine Tools
Product Range
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Turning Machines
Grinding Machines
Gear Manufacturing Machines
Machining Centres
Other Gpms
Special Application Machines
Diecasting Machines
Presses
Cnc Systems
Precision Ballscrews
TURNING MACHINES
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• CNC Lathes
• CNC Turning Centres
• Heavy Duty Lathes
• Single / Twin Spindle Chuckers / Multispindle CNC Automats
• Sliding Head Automats
• CNC Training Lathes
• Centre Lathes
• CNC Slant Bed Turning Centres
• CNC Heay Duty Lathes
• CNC Chuckers
• CNC Turnmill Centres
GRINDING MACHINES
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CNC Surface Grinding Machine SGC1
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CNC High Speed Gear Shaper WS1 CNC-3A
MACHINING CENTRES
OTHER GPMs
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CNC Vertical Tool Room Milling Machine CTR-1
Machining Solutions –
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• Multi Station Round Table SPM
• SPM for Battery Manufacturing
• 2-Axes CNC Precision Co-ordinate Table
• Dual Spindle Case Trimming Machine
• Duplex Milling Machines
• Bilateral Master- Slave Servo manipulators
• CNC Heavy Duty Internal Grinding Machine
• CNC Drilling & Reaming Machine
• CNC Stitching & Hole Drilling Machine
• Head Turning & Mouth Reaming Machine
• Rotary Indexing Machines
• Flash Hole Drilling Machines
• CNC 4-Axes Chucker
• CNC Precision Internal Grinding Machine
HMT offers 9 models of Die-Casting Machines with locking forces ranging from 80 to 1100
tones to cover a wide range of pressure Die-Casting of Aluminum, Zinc, Magnesium, Copper,
Lead & Tin components.
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The salient features of these machines include digital setting of Die-closing / Opening and
Ejector Speed, Flying Piston type accumulator individually adjustable speeds and pressures,
large adjustable opening stroke and programme logic control.
HMT manufacturing six models of Plastic Injection Moulding Machine ranging from 80 to 630
tones locking force.
A wide range of PRECISION BALL SCREWS used in CNC Machine Tool, Roto Gravure
printing machines and various engineering products for conversion of rotary motion into linear
movement and vice versa.
The range covers Ball Screws in sizes from Dia 25 MM to Dia 80 MM with leads 5,8, 10 & 12
MM pitches. Maximum length up to 3500 MM
PRESSES
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HMT offers wide range of
• Mechanical Presses
• Hydraulic Presses
• Mechanical Press Brakes & other Presses
The HMT range covers Mechanical Presses up to 2500 tonnes and Hydraulic Presses upto
8000 tonnes. HMT Presses are designed and offered in various arrangements.Crank /
Eccentric Shaft / Eccentric Gear / Knuckle Joint Type with a choice of single point, two point or
four points of power application and gearing arrangements to suit individual requirements.
CNC SYSTEMS
CNC Systems covering controls for
• Turning Machine
• Machining Centers
• Grinders & Punch Presses
• Turning Centers
• Twin Spindle Chucker
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WATCHES
Elegance
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Roman
Utsav
Sangam
Lalit
Pace
- Good as Gold
Shreyas
Chandan
Braille
- A gift of time to the blind & Also Customised watches for Institutions
Special Clocks
Tower Clock
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Solar Clock
Population Clock
Display Clock
Floral Clock
International Clock
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Master slave Clock
TRACTORS
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MODEL HP RANGE MAIN FEATURE
2522 25 AVL fuel efficient engine & New Style Bonnet
Fuel efficient engine (HMT Design); New Style
3022 30
Bonnet
AVL adapted fuel efficient engine & New Style
3522 35
Bonnet
4511 45 HMT Design
5911 58 Heavy Duty Tractor (Czech Design)
7511 75 HMT Design; Power steering & ROPS
2522 OS 25 Low height and width for orchard applications
3522 CS 35 Wetland cultivation
3522 DX 35 Direct Axle Drive
4511 CS 45 Wetland cultivation
AVL adapted fuel efficient engine & New Style
4922 EDI 49
Bonnet
25, 30, 35, 45 &
ENGINES Gen-set & Commercial applications
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CS: Coastal Special DX: Direct Axle OS: Orchard Special
PRINTING MACHINERY
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o Five Color Sheet fed Offset Printing Machines
o Four Color Sheet fed Offset Printing Machines
o Two Color Sheet fed Offset Printing Machines
o Single Color Sheet fed Offset Printing Machines
o Web Offset Printing Machines
o Programmable Guillotines
o Punching & Stitching Machines
o Numbering Attachment
BEARINGS
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Ball Bearings
Cylindrical Roller Bearings
Taper Roller Bearings
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After having established two machine tools factories and a watch factory in Bangalore, the
Pinjore unit was established as the third machine tool factory .It went into production on 1st
October 1963.
This factory has been designed, built and commissioned entirely by Indian talent in record
period of 17 months of breaking the ground on May 2, 1962. Pandit Jawaharlal Nehru, the first
prime minister of free India, inaugurated it on October 23, 1963. Later in June 1971, HMT’s
Tractor project commenced its operations here.
Tractor Division
The unit was initially planned for manufacturing Milling Machines. To begin with, foreign
designed machines were manufactured and subsequently after acquiring designing
capabilities, HMT’s self designed machines were introduced.
In tune with HMT commitment to Usher in the latest technologies to the country’s gust
developing Industrial base, In 1976 the unit introduced the state of the art computerized
numerically controlled machines offering unlimited options in the unmanned manufacturing
concept.
The unit has designed a wide rang of both horizontal and vertical CNC machines centres to
meet stringent accuracy standard, providing high flexibility and productivity with enough
muscle to remove large quantity of material at low rpm for steels and high metal alloys.
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High processing speed is ensured through CNC systems that have powerful graphics and
user finely features. The machine can be integrated with other machine tools into flexible
manufacturing line.
The unit also manufactures moving column type special purpose machines which can perform
milling, drilling, tapping, boring and reaming operations with re-circulation linear motions
bearing for high position accuracy with encoder ‘X’, ‘Y’, ‘Z’ axis.
FMS & FMC; Machining Centers – Horizontal and Vertical; Broaching Machines; Milling
Machines – CNC & NON CNC; Rotary Tables; ATCs; Refurbishing & CNC Retrofitting
Tractor Division:
HMT established Tractor plant in Pinjore in 1971 to provide Impetus to the Country’s Green
Revolution. To begin with, it started assembly of 25 HP tractors in collaboration with M/s.
Motokov of erstwhile Czechoslovakia, manufacturers of Zetor brand of tractors. Pinjore was
selected for the project because it was within the high-density crop-producing region according
immediate market in the vicinity.
Initially, the tractors were assembled from imported CKD/SKD packs. Production facilities
were simultaneously established to reduce the imported content with the result that the model
was fully indigenized within a short span of five years. Designing capabilities were acquired to
widen the product range.
Product Range
At present, HMT manufactures tractors in 25, 30, 35, 45, 58, 65 and 75 HP ranges. Out of
these 30, 35, 45, 58, 65 and 75 HP Tractors have designed in house. HMT also manufactures
specialized versions for particular soil conditions like coastal special and the orchard special.
HMT sells its Tractors through its well knit 300 strong dealer network. It has sold over 3,
50,000 tractors so far, within the country as well as in the international market.
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Looking Beyond Tractors
HMT has entered into technology transfer agreement with Tractor Vehicle ltd. to manufacture
and market the worlds only transport oriented tractors (HMT tractors). HMT limited has
obtained exclusive world wide rights to manufacture and sell tractors featuring a range of 2
wheels and 4 wheels drive with fully suspended axels in 60 to 130 HP ranges.
HMT plans to grow the business of diesel engine as a strategic business unit and is taking
initiatives towards this end.HMT has been manufacturing 2, 3, and 4 cylinders diesel engines
in the range of 25HP to 65HP in technical collaboration with A.V.L of Austria to meet its captive
requirement for powering tractors since 1971.
It is also offering the diesel engines for industrial applications like compressors, Rice and
Flour Mills and Construction equipments etc. and for power generation in the range of 12 to 35
KVA ratings. Of late, it has opened up the sales of its diesel engine for tractor powering also.
The engine manufacturing facilities are continually upgraded and improved to ensure requisite
quality. Institutions like The Automotive Research Association of India, Pune (ARAI), and
Bureau oIndian Standards (BIS) etc. certify HMT engines. Reliability and economy are the
main features of HMT Diesel Engines.
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Marketing Mix Of HMT Machine Tools Ltd.
Marketing Mix is the set of controllable, tactical marketing tools product, price place and
promotion that the firm blends to produce the response, it wants in the target market. The
marketing mix consists of everything the firm can do to influence the demand for the product.
Many possibilities can be collected into four groups of variable known as 4p’s.
Marketing
Mix
Product
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An object or a service that is mass produced or manufactured on a large scale with
a specific volume of units.
A typical example of a mass produced service is the hotel industry. A less obvious but
ubiquitous mass produced service is a computer operating system.
Typical examples of a mass produced objects are the motor car and the disposable
razor.
Price
The price is the amount a customer pays for the product. It is determined by a number
of factors including market share, competition, material costs, product identity and the
customer's perceived value of the product.
The business may increase or decrease the price of product if other stores have the
same product.
Place
Place represents the location where a product can be purchased. It is often referred
to as the distribution channel.
It refers to how the product gets to the customer; for example, point of sale placement
or retailing. This fourth P has referring to the channel by which a product or services is
sold (e.g. online vs. retail), which geographic region or industry, to which segment
(young adults, families, business people), etc.
Promotion
Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations, word of
mouth and point of sale.
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Public relations are where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events.
Word of mouth is any apparently informal communication about the product by ordinary
individuals, satisfied customers or people specifically engaged to create word of mouth
momentum.
Sales staff often plays an important role in word of mouth and Public Relations (see
Product above).
Product Mix
HMT Machine Tools Ltd. produces a wide range of products from simple lathes to multi
station transfer lines, from stand alone CNC machines to flexible manufacturing systems,
leading to factory automation.
HMT’s broad range of machine tools covers General Purpose Machines and CNC Machines to
meet the application needs of every engineering industry. Its main products are:
TURNING MACHINES
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• Slant Bed CNC Turning Center STC 20
• Slat Bed CNC Turning Center STC 25/ SBNC 30
• Slant Bed CNC Turning Center SBCNC 40/60
• CNC Turning Center PRECITURN PT-S/L/EL
• Flexible Turning Cells
• Medium and Heavy Duty Lathe
MACHINING CENTRES
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• HORIZONTAL MACHINING CENTRES
GRINDING MACHINES
DIECASTING,PIM,PRESSES
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• CUSTOM BUILT MECHANICAL PRESSES
• SPECIAL MECHANICAL PRESSES
• HYDRAULIC PRESSES
• HYDRAULIC PRESS BRAKES
• MECHANICAL PRESS BRAKES
PRINTING MACHINES
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Price Mix
The pricing decisions or the decisions related to prices charged by companies are found
instrumental in motivating or influencing the target market.
The pricing policy of A Company is considered important for raising the number of customers’.
Also the quality of service provided has direct relationship with the fees charged. Thus while
deciding the price mix customer services rank the top position.
The organizations are required to frame a strategy. First, the strategy is concerned with fee
charged and the second strategy is related to the service provided. Since both the strategies
throw a vice- versa impact, it is important that company attempt to establish a correlation
between two. It is essential that both the buyers as well as the sellers have feeling of winning.
Pricing HMT Machine Tools Ltd. Products Starts With Three Basic
Questions.
1. What rate does the HMT Machine Tools Ltd. need to meet its financial objectives?
The answer is, the machines of HMT Machine Tools Ltd. are of high quality and technology.
So, pricing should be such that the company can get its cost and also some profit up to the
level which is fixed by top level management.
Another element to consider in the pricing of earning assets is the risk of loss. Most notably,
this is relevant in CNC machines. Many companies assign a risk weighting to individual
machine over a certain size or based on machine type and assign a credit risk charge based
on those ratings.
Customer relationships are difficult to assign a value to in the pricing process. Customers will
generally press for some price concessions in consideration of other relationships they have
with the HMT Company.
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2. What is the market rate for the core product?
Customers have more distribution channels available to them today than at any other point in
history. In the past few years, the number of machine tools company’s locations has increased
a great number. Of course, there are the second hand machine sellers, and the Chinese
machines sellers competing with the company.
The point is, the competitive marketplace always ensures that if a company is charging too
much for any kind of machine, its share of the market will likely dwindle as existing and
prospective customers find alternative providers. You can do the entire math you want to
determine required pricing points, but if you’re pricing is uncompetitive, your market share
will shrink.
3. What would the HMT Machine Tools Ltd. has to do to sales and
operations to make its rates the most competitive in its market?
Pricing is a key issue for the associates who sell same products to your customers. The fact
is, HMT Machine Tools Ltd. wants higher rates for its machines, and people want the
machines at lower rates. You need the right balance of effectiveness and efficiency to reduce
operating costs, and a healthy asset and liability mix to change your required pricing.
PLACE MIX
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This component of marketing mix is related to the offering of services. The services are sold
through the branches.
The 2 important decision making areas are: making available the promised services to the
ultimate users and selecting a suitable place for branches.
LOCATION OF BRANCH:
• BANGALORE COMPLEX
• PINJORE COMPLEX
• KALAMASSERY COMPLEX
• HYDRABAD COMPLEX
• AJMER COMPLEX
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Bangalore Complex:
Machine Tools Division, Bangalore, HMT P.O., Bangalore 560 031
Pinjore Complex:
Kalamassery Complex
Machine Tools Division, HMT Colony P.O. Kalamassery 683 503, Ernakulam Dist.
Telephone 91-484-254 0731
Hyderabad Complex
Machine Tools Division, HMT Township P.O., Narsapur Road, Hyderabad 500 054,
Telephone 91-40-2308 5721
Ajmer Complex
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• Wide marketing network manned by qualified & trained sales & service engineers
• Service outlet at customer doorsteps in major industrial locations.
• Customer training programs on Mechatronics in addition to regular machine-oriented
training for machine tools.
• Manufacturing Units supplement customer support for tooled-up and high technology
machine tools
Promotion Mix
Promotion Mix is the communication mix which deals with the personal and impersonal
persuasive communication about the product or service of the manufacturer. Though
companies communicate with their present and potential customers in wide variety of ways,
the most distinguishable categories are two namely Personal and impersonal.
HMT Machine Tools Ltd. uses Personal Selling way to communicate with there
customers. Personal selling has an important role to play in communicating between a firm
and its customers. The manager of HMT Machine Tools Ltd. himself goes in personal and
meets the clientele. He gets to knows about the need of the customer and tells him the best
product which will suit to him.
All the queries of the customer are addressed by the sales representative. Negotiations,
discounts etc. are also done in personal by the manager. HMT selling industrial products does
not need to advertise or promote sales; it just needs a good sales representative to handle the
sales department.
Trade Fairs and Exhibitions are the only mean of promotion of the products by HMT. An
Exhibition is the huge congregation of manufacturers and dealers under a single roof for
displaying, demonstrating and selling their products. These Exhibitions are mostly organized
by organizations namely Chambers of Commerce and Indian Machine Tools
Manufacturers Association (IMTMA).
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• IMTEX 2007 & TOOLtech 2007, The 13th Indian Machine Tool Exhibition with
international participation rganised from 18-24 January 2007 at Bangalore
International Exhibition Centre [BIEC], Bangalore.
• Modern Machine Shop 2008, 25 - 29 April 2008, Pragati Maidan, New Delhi
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Chapter – 2:
Project Profile
CONSUMER BEHAVIOUR/PREFERENCES
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Before getting into the details of Consumer Behavior we need to understand some basic
terminologies. In general terms both ‘Consumer’ and ‘Customer’ are considered the same but
they are quite different.
Customer:
The term is used to refer to someone who regularly purchases from a particular store or
company. Mahatma Gandhi has made a visionary and deep meaningful statement at
Johannesburg, South Africa in 1890, “A customer is the most important visitors on our
premises. He is not dependent on us. We are dependent on him. He is not an interruption
on our work. He is the purpose of it. We are not doing him a favour by serving him. He is
doing us a favour by giving us the opportunity to do so”.
Traditionally the word ‘Customer’ was used to define people whom the organization dealt
with externally. Though the word ‘Customer’ is used as a single unit purchases could
be made both by the individual and the group’.
Consumer:
The traditional view point has been to define consumer strictly in terms of economic goods
and services.
This position holds the consumers are potential purchasers of product and services offered
for sale. The view has been broadened overtime so that at least some scholars now do not
consider a monetary exchange to the definition of consumers. This change implies that
potential adopters of free services or even philosophies or ideas can also be encompassed
by the definition.
So ultimately Consumers are those individuals who purchase for the purpose of individual
or household consumption.
OR
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The individual who consumes or uses a product , which may or may not be purchased by
him. So, after getting into these terms we need to get into the details of “Consumer
Behavior”.
Consumer Behavior can be said to be the study of how individuals make decision on how
to spend their available resources (time, money, efforts) on various consumption related items.
OR
Consumer Behavior may be defined as the decision process and physical activity individuals
engage in when evaluating, acquiring, using or disposing of goods or services.
The Consumer Behaviour research goes far beyond the facts of consumer preferences and
encompasses all of the behaviours that consumers display in searching for purchasing, using,
evaluating and disposing of products and services that they expect would satisfy their need.
These questions will help in understanding the factors that influence the decision making
process of the consumers. It generally assumed that consumer decision making is based on
limited information that the consumer has.
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It refers to the set of activities that would lead an individual to perform some specified tasks. In
case of consumer preferences it would refer to the set of factors that make an individual prefer
one product over another.
The preference for the products mainly lies in the answer of the following important questions-
The output portion of the Consumer Behaviour model states that the consumer evaluates the
various brands of the products he is interested in buying and then chooses a specified brand.
Trail i.e. going for the new product just because the earlier similar product was not
satisfying or because the consumer likes to try new product.
LITERATURE REVIEW
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Once the research problem is formulated, the researcher undertakes an extensive literature
survey. The literature survey conducted here includes the academic books and websites from
internet.
The research to be conducted was “To study the Customer Behavior of HMT Machine
Tools and its Comparison with others”
The inspiration to conduct this particular research was from David L. Loudon & Albert J.
Della Bitta, Consumer Behavior Concepts and Application19. There are various brands of
different machines available in India and the individuals prefer different ones according to their
choice and needs. The details about the different machines have been collected from websites
likehttp://www.sonalika.com AND http://en.wikipedia.org/wiki/machinetools
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MODEL OF BUYING BEHAVIOUR
PHYSICAL RESEARCH
DISTRIBUTION EVALUATION
OF
ALTERNATIVES
PURCHASE
DECISION
POST
PURCHASE
BEHAVIOUR
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PROBLEM INFORMATION
EVSLUATION OF
RECOGONITION RESEARCH
ALTERNATIVES
POST
PURCHASE
PURCHASE
DECISION
DECISION
Understanding consumer behavior and ‘knowing customers’ is never simple. Customers may
say one thing but do not say another. They may not be in touch with their deeper motivations.
They may respond to influences that change their mind at the last minute………..According to
ALBERTO CULVER PHILOSOPHY
Business organizations do not only sell. They also buy vast quantities of raw materials,
manufactured components, plant & equipment, supplies & business services. Seller needs to
understand these organization’s needs, resources, policies & buying procedures.
There are several research designs5 and researcher must decide in advance of collection and
analysis of data as to which design would prove to be more appropriate for his research
project. He must give due weight to various points such as the type of universe and its nature,
objectives of his study, the resource list or the sampling frame, desired standard of accuracy
and the like when taking a decision in respect of design for his research project.
The research has tried to cover almost every area of the research topic and has gained an
insight of the Customer’s Satisfaction of HMT Machines Tools Ltd. and its competition with
others.
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Chapter-3:
RESEARCH METHODOLGY
Research in common parlance refers to search for knowledge. It can also be defined as a
scientific and systematic search for information on a specific topic. According to OXFORD
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Dictionary: “Research is a careful investigation or inquiry especially through search of
new facts”.
Research Methodology in a way is a written game plan for conducting research. Research
methodology may have dimensions. It includes research methods and also considers the logic
behind the methods used in the context of the study. It may also be understood as the science
of the study and minimizes the degree of uncertainty of making wrong choices. It helps to
understand assumptions underlying various techniques and the criteria by which they can
decide that certain techniques will be applicable to certain problems and others will not.
SAMPLING:
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Sampling can be defined as the selection of some part of an aggregate or totality on the
basis of which a judgment or inference about the aggregate or totality is made. In other words
it is the process of obtaining information about an entire population by examining only a part of
it. The process of sampling is used for various reasons-
Sampling saves time and money. It is usually less expensive and produces results at
faster speed.
It provides more accurate information.
It enables to estimate the sampling errors and thus assists in obtaining information
concerning characteristics of population.
It also enables greater speed of collection of data.
The ultimate test of sample design is how well it represents the characteristics of the
population it purports to represent. In measurement terms the sample must be valid which
depends upon –
SAMPLE DESIGN:
A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to
the technique or the procedure that is adopted in selecting the sampling units from which
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inferences about the population is drawn. Sampling design is determined before the collection
of the data.
Several decisions have to be taken in context to the decision about the appropriate sample
selection so that accurate data is obtained and efficient results are drawn.
SAMPLE SIZE:
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It indicates the number of individual who would be surveyed. Here the sample size is 100
respondents but the evaluation is being on the data obtained from 80 individuals as the
remaining questionnaires were not completely filled.
SAMPLING:
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DATA COLLECTION
After defining the problem and deciding about the sample and its size we need to collect data
to further carry out our report work. The gathering of data may range from a simple observation
at one location to a grandiose survey of multinational corporations at sites in different parts of
the world. The method collected will largely determine how the data is collected. The main
methods of data collection adopted here are –
This methodology is used for the proximity to the truth and control over errors. These cautions
remind us to use care in designing data collection procedures and generalizing form results.
There are several methods of primary data collection like Observation Method, Interview
Method, Schedules, and Questionnaires and so on. The method used by me is
Questionnaire.
It is considered as the heart of survey operations and therefore should be very carefully
constructed. It consists of a number of questions printed or typed in a definite order which is
filled by the respondents on their own. A good questionnaire should be comparatively short
and simple and the sequence shall be from easy the difficult ones.
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PILOT SURVEY-
It is the replica or rehearsal of the main research or survey and is carried out to find out the
weaknesses of the questionnaire and the survey techniques. Experience gained in this way
would lead to the improvement in the study. My pilot survey was conducted on 10 respondents
and I found the results quite satisfactory and therefore went forward with the same
methodology of the study adopted.
Secondary data means that data that are already available i.e. refers to data which has
already been collected and analyzed by someone else. The sources used in this case are-
Magazines.
Journals.
Websites.
Company profile.
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Chapter – 4:
LIMITATIONS
70
Various hindrances occurred while carrying out the research. They have
acted as limitation of the study and a few of them are:-
1. The time period for carrying out the research was short as a result of which many
facts
have been left unexplored.
2. The area for study which is quite a large area to judge out the consumer preferences
for the various Machine Tools Companies.
3. The market is not well flourished and because of which many good brands are not
available.
4. Consumers were not aware about various brands available.
5. Only 100 respondents have been chosen which is a small number to represent the
whole of the population.
6. While collection of the data many consumers were unwilling to fill the questionnaire.
7. Many of the respondents did not fill the questionnaire completely because of which
the
sample size got reduced to 80.
8. Research gets bound as we have to give liter tests along with study.
9. Method of sampling is chosen which seems not to be appropriate.
10. No stipend provided by the company for this research work. so it was difficult for me
to bear the expenses, in order to deliver my 100%.
11. As machines being an industrial product I didn’t find many respondents who would
answer to me due to their busy schedule.
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Chapter – 5:
DATA ANALYSIS
&
INTERPRETATION
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1. Does u have any CNC machine?
70% yes
60%
50%
40%
no yes
30% no
20%
10%
0%
AGRO PRODUCT
Interpretation
This was a straight forward question the answer to it was that about 67% of the
respondents had AGRO machine .
Most of the have adopted the new technology but the remaining who are not using
AGRO machines may is due to the high prices of this type of machines.
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2. Are you aware of all the Major Market Players of Machine Tools?
100% SONLIKA
90% HMTESCOROTH
T
ERS
80%
70%
SONLIKA
60%
HMT
50%
ESCORT
40%
OTHERS
30%
NO
20%
NO
10%
0%
Cunsumer Awareness
Interpretation
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3. Which Brand/Companies Machine does u own?
60%
50%
40% HMT
SONALIKA
30%
ESCORT
20% OTHERS
10%
0%
Interpretation
Out of samples surveyed, 59% were responding for HMT.
18% customers were having BFW Machines.
9%were having Botaliboi.
8%were having Germany made Machines.
5% person had the low quality Chinese Machines.
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4. For how long does u have that Machine?
35%
30%
25%
1 to 2 yrs
20%
2 to 3 yrs
15% 3 to 4 yrs
10% 4 to 5 yrs
5% more than 5 yrs
0%
Years Since they are having
Machines
Interpretation
On this question the response came out to be that 21% of the respondents were
having CNC machine for the past 1-2 year only.
23% were having it from the last 2-3 year,13% had it from 3-4 year.
10% had it from 4-5 year and the well established companies had it before the
last 5 years.
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5. Does price bothers you before purchasing any Machine?
Yes
50%
45%
40%
No
35%
30%
Yes
25%
In some No
20%
cases In some cases
15%
10%
5%
0%
Respondents view abou Price
Interpretation
Most of the people about 49% of the people said yes Price bothers them before
purchasing any machine , cause the cost of mostly all the CNC machines is so
high that people have to think before buying it.
34% of the respondents said no price don’t bother them because they want just
the best at any price.
17% replied that in some cases price is a major factor for them.
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6. Which is the most important factor to you before purchasing any
machine?
25%
Price
20%
Lifeof Machine
15%
Maintenance
10% Cost
after sale
5%
capicity of work
0%
Factors InfluencingPurchse
Interpretation
From the survey it is clear that price is the most important factor before
purchasing any machine, about 25% of the respondent said this.
22% said life of the machine is most important for them.
Maintenance cost and After Sales Services had similar response about 18% and
15% respectively.
Performance of the machine was also rated high, it was about 20%.
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7. Which factor is most influencing to you to purchase the Machine?
40%
35% BRAND IMAGE
30% PRICE
25%
20% AFTER SALES
SERVICE
15% LIFE PERIOD OF
10% THE MACHINE
5% ANY OTHER
0%
Interpretation
Brand Image is given importance before making the purchase decision as 39% of
the respondents replied.
Price again as analyzed earlier is the most important factor for making purchase
decision, 11% respondents replied that price is the most influencing factor for
them.
After Sales service was influencing for 31% respondents.
Life of machine was rated high by 15% respondents.
And other Factors like Handling, Size etc. influenced 4% of our respondents.
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8. Who influences you more in buying decisions of CNC Machines?
Interpretation
Most of the respondents are in machine tools industry from a long time, so they
themselves are aware of what to buy; about 30% respondents said they
themselves make the purchase decision.
The engineers are the persons who are responsible for the effective production,
37% of the buyers are influenced by their Engineers for making purchase
decision.
Past experience of the machine counts a lot 29% of the respondents are
influenced by that.
Other factors were rated just 4%.
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9. What impact has price got on the purchase of CNC Machine?
Interpretation
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10. From where does u come to know about the latest Machines and
technology?
Interpretation
Exhibitions and Trade fares are the major source of consumer’s knowledge,
through these they come to know about various new machines and
technology.34% and 43% is the response to exhibitions and trade fares
respectively.
Through the Word of Mouth 13% of the respondents come to know about new
machines.
Magazines and Newspaper are the source of information for 10% of the
respondents.
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11. Are you satisfied with the after sales services of your CNC Machine?
44%
45%
40%
35%
30% 27%
Fully Satisfied
25% 21% Satisfied
20%
Neutral
15%
Dissatisfied
10% 8%
5%
0%
After salesservice satisfation level
Interpretation
On this question the answer as Fully Satisfied people is very less it is about 8%.
The number of Satisfied persons is high it is about 44%, which is the highest
percentage, means most of the people are satisfied with the after sales services
provided.
Percentage of Neutral people is 27%, whereas dissatisfied respondents are 21%.
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12. Are you satisfied with its overall performance of your Machine?
Interpretation
Fully Satisfied people in any case are found very difficultly, so is the case here
the number of Fully Satisfied respondents are just 10%.
Satisfied numbers of respondents are more about 46% of the respondents are
satisfied with the performance of their Machine.
Neutral and Dissatisfied respondent are 25% and 19% respectively.
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13. According to you which company gives most benefits to customers?
60%
sonalika HMT
40% escort
HMT sonalika
20% escort
OTHERS OTHERS
0%
Company givingmore benefits to
customers
HMT 25%
sonalika 40%
escort 30%
OTHERS 5%
Interpretation
The response to this question is not in favor of HMT, as persons in favor of HMT
are just 25%.
SONLIKA which provides most benefits to its customers, 40% of the
respondents gives this evident.
ESCORT is also above HMT in providing benefits to its customers 30% of the
respondents are in favor.
OTHERS is the company which provides least benefits to its customers just 5%
of the respondents voted for it.
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14. Next time which brand of CNC Machine you would like to purchase if
you have to purchase another CNC Machine?
50%
40%
SONALIKA
30%
HMT
20% ESCORT
10% ANYOTHER
0%
Next Option
Interpretation
This question was asked to check the Brand loyalty of the respondents and their
thinking about HMT Machines. The response to it was very good as 45% of the
respondents said they will buy SONALIKA machines.
26% of the respondents said they will go for HMT.
ESCORTS 19%
5%of the people said they will buy Chinese machines or will buy second hand
machine of any company as due to high cost.
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Chapter – 6:
87
Facts and Findings
From the survey we can find out that mostly the Machines are purchased by Large scale
industry people.
In Machine Tools industry the preference is given mainly to Price of Machine then to any other
factor.
That the people who are HMT customer are Loyal to it. But we should work to add more and
more customers.
Customers come to know about latest machines and technology through Exhibitions and Trade
fares .
That customers likes to purchase machines when offered discounts and other attractive
schemes.
Performance of Machine , After Sales Services play a important part in improving sales.
So, HMT should work on that.
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Chapter – 7:
SWOT ANALYSIS
89
SWOT ANALYSIS
STRENGTHS
HMT brand Value.
It has adequate infrastructure, qualified manpower, office space and computer network
to support its activities.
WEAKNESSES
Turnover mainly coming from single product Tractor division.
Since it is a Govt. enterprise, so change in Govt. policies may affect the profitability.
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OPPRTUNITIES
It is the biggest plant (in terms of area) among India’s manufacturers of Tractors.
THREATS
Being a govt. undertaking its business may be affected due to change in govt. policy.
91
Chapter – 8:
SUGGESTIONS
92
SUGGESTIONS FOR THE COMPANY
HMT should participate in more and more Exhibitions and Trade Fairs for the promotion
of their product.
It should provide attractive credit policy, so as to attract even small scale producers.
Concessions on Transportation and things like free Transit Insurance would attract
more customers .
Company should take serious actions on the complaints of the buyers so that they are
fully satisfied and quality can be improved
93
Chapter – 9:
CONCLUSION
CONCLUSION
94
In the last, I would like to say that the market position of HMT is not so good. As the
company started 55 years back, it is competeting with new companies and holds largest
share of the Indian market which still it is running in losses it shows poor performance of
But the company has to do something extra to bring good image in the minds of
customers. Not only for new customer but for old customer also However according to
however Machines are not performing bad in the market but to get a good position in
the market it has to give some extra ordinary performance The new HMT Machines are
performing well but due to its image of high price machine it will take some to get a
place in customer mind .Consumer service should be increased so more customer can
be attracted.
Instead of opening more dealerships the company should work on providing better after
sales services. It needs good publicity and marketing activities at the moment the only
need to run things in a proper and arranged manner which would increase the sale in a
positive manner.
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Chapter – 10:
APPENDIX
96
I am undergoing summer training and this training is being conducted in lieu of partial
fulfillment of 3rd semester for the degree of MBA and means no business.
Personnel Information:
Name:
Age:
Place:
Yes
No
2. Are you aware of all the Major Market Players of Machine Tools?
Yes
No
HMT
BFW
BATLIBOI
GERMAN MACHINE
CHINESE MACHINE
1-2 yrs
2-3 yrs
3-4 yrs
4-5 yrs
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>5 yrs
Yes
No
In some cases
Brand Image
Price
Any other
Self
Engineers
Past experience of
Machine
Other
98
8. What impact has price got on the purchase of CNC Machine?
Very High
High
Medium
Less
9. From where does u come to know about the latest Machines and
technology?
Exhibitions
Trade fares
Word of mouth
10. Are you satisfied with the after sales services of your CNC Machine?
Fully Satisfied
Satisfied
Neutral
Dissatisfied
11. Are you satisfied with its overall performance Of your Machine?
Fully Satisfied
Satisfied
99
Neutral
Dissatisfied
HMT
BFW
BOTLIBOI
LMW
13. Next time which brand of CNC Machine you would like to purchase if you have
to purchase another CNC Machine?
HMT
BFW
BOTLIBOI
LMW
ANY OTHER
100
Chapter – 10:
BIBLIOGRAPHY
101
BIBLIOGRAPHY
Web Sites:
• www.imtma.in/
• www.hmtmachinetools.com/
• www.hmtindia.com/
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