A

STUDY PROJECT REPORT

ON
Consumer Behavior

of HMT machine Tools Ltd.

1
PREFACE
2
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

3
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.

(Rajesh Kumar Sharma)

CONTENT

4
Chapter-1: Company Profile

Chapter-2: Project Profile

Chapter-3: Research Methodology

Chapter-4: Limitations
Chapter-5: Suggestions

Chapter-6: SWOT Analysis

Chapter-7: Conclusions
Chapter-8: Findings and Analysis
Appendix
 Bibliography
 Schedule
 Forms of performance appraisal

5
 Chapter-1:
Company Profile

Profile

Hindustan Machine Tools

6
Hindustan Machine Tools is a public sector undertaking of the Government of India. In 1953,
the latter incorporated the machine tool manufacturing company by the name of Hindustan
Machine Tools Limited.

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,

HMT has six subsidiary companies under its supervision namely:

 HMT Machine Tools Limited

 HMT Watches Limited
 HMT Chinar Watches Limited
 HMT International Limited
 HMT Bearings Limited

 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.

7
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.

As leading manufacturer of Machine Tools in India HMT-MTL provides

• The best of products in terms of technology, productivity and cost effectiveness

• Comprehensive Customer Support services including Application Engineering,
Customer Training and After sales service.

HMT Machine Tools Ltd.

8
 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

9
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

10
 VARIOUS UNITS & DIVISIONS OF HMT

YEAR UNITS / DIVISION LOCATION STATE

1953 Machine Tools I Bangalore Karnataka
1961 Machine Tools II Bangalore Karnataka-
1962 Watch Factory I Bangalore Karnataka
1963 Machine Tools III Pinjore Haryana
1965 Machine Tools IV Kalamassery Kerala
1967 Machine Tools V Hyderabad Andhra Pradesh
1971 Tractor Division Pinjore Haryana
1971 Die Casting Division Bangalore Karnataka
1972 Printing Machinery Division Kalamassery Kerala
1972 Watch Factory II Bangalore Karnataka
1973 Precision Machinery Division Bangalore Karnataka
1975 Machine Tools VI Ajmer Rajasthan
1975 HMT (International) Ltd. Bangalore Karnataka
1975 Watch Factory III Srinagar Jammu & Kashmir
1978 Watch Factory IV Tumkur Karnataka

1981 HMT Bearings Limited Hyderabad Andhra Pradesh

1981 Quartz Analog Watches Bangalore Karnataka

1982 Watch Factory V Ranibagh Uttar Pradesh

1982 Specialised Watch Case Division Bangalore Karnataka

1983 Stepper Motor Division Tumkur Karnataka

1985 Ball Screw Division Bangalore Karnataka

1986 CNC Systems Division Bangalore Karnataka

1991 Central Re-conditioning Division Bangalore Karnataka

11
Vision and Mission

12
• 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

To achieve sustained growth in the earnings of the group on behalf of shareholders

Corporate Objectives & Goals

13
 • 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:

 To be a leading GLOBAL ENGINEERING CONGLOMERATE focused on CUSTOMER

DELIGHT in our fields of Endeavour.

 Corporate Mission:

 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

 To achieve sustained growth in the earnings of the group on behalf of

shareholders

Objectives & Goals

 To encourage the modernization of Indian Industry through the supply of engineering

goods and services of world class excellence

14
  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

 Quality Products and Services.

 Cost effective solutions to the customer.
 Efficient after-sales-service through our Regional / Zonal offices.
 Supply of spares required within a reasonable time.
 Training to train the customer / his representatives on the utilization & maintenance of
the product

Commitment

 Strive continuously to assure you of highest standard of service

 Strive to attain international standards to become globally competitive.
 Acknowledge all correspondence from you within a reasonable time of its receipt
 Adhere to the delivery schedules committed by us to you
 Strictly adhere to the standards, specifications stipulated in ISO-9001
 Always maintain the highest ethical standards in all our endeavors, business and
economic activities
 Always strive to achieve economy in all our products and services without
compromising the quality standards
 Always remain competitive through continuous improvement in our technology
 Always be honest and transparent and would like to be seen as honest.
 Implement all the policies and directives of Central Vigilance Commission.

15
Expectations from Customer

 Be prompt and reasonable.

 Extend your cooperation in our entire endeavour.
 Be fair, honest and transparent in dealings.
 Provide detailed specifications.
 Comply with the Service / Maintenance instructions and regular preventive maintenance
schedule.
 We shall work together to achieve the product to your satisfaction.

Business Strategy

In order to effectively compete in an increasingly open market, where each manufacturer of

machine tools specializes in a particular family of machines, the Company has developed a
comprehensive business strategy which aims to profitably grow the Company’s market share
in key growth segments and to maintain its leadership position in the Indian machine tools
industry. The Company intends to pursue continued growth over the medium term by:

 Integrating production and increasing productivity through efficient use of

existing capacity

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.

 Cost reduction measures

Based on the assessment of manpower required, HMT-MT had a voluntary separation

package for its employees in 2000-01. 2,114 employees availed of the separation
scheme in 2000-01. In 2001-02, 1,235 employees have availed of the scheme till
December 31st, 2001. The Company proposes to continue rationalizing its manpower to
bring it to optimal size, commensurate with the size of its operations.

16
  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
17
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.

ORGNISATIONAL STRUCTURE OF HMT PINJORE

At unit level of HMT Limited, Pinjore, the Executive Director is the head of the unit and the
organization is further divided into TWO main division:-

• Machine Tools division

18
 • Tractor division

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:-

S.NO. Deptt. MTP TRP

a) Design Dy. General Manager GM(R&D)

b) Planning Jt. General Manager JGM(ET)

c) Progress Jt. General Manager AGM(RT)

d) Inspection DGM(QA) JGM(IT)

e) Store DGM AGM

f) Purchase DGM DGM

g) Sale Manager DGM

h) Personal GM(HRM)

PRODUCTS

19
 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

High Speed Precision Lathe Craft master

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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

• Cylindrical Grinders - CNC

• Internal Grinders - CNC
• Centreless Grinders - Non-CNC
• Surface Grinders - Non-CNC
• Double Disc Grinders - Non-CNC
• Grinders - Others
• Cylindrical Grinders - Non-CNC
• Centreless Grinders - CNC
• Surface Grinders - CNC
• Double Disc Grinders – CNC
• Tool & Cutter Grinders

GEAR MANUFACTURING MACHINES

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CNC High Speed Gear Shaper WS1 CNC-3A

• Gear Hobbers - CNC

• Gear Shapers - CNC
• Gear Hobbers - Non-CNC
• Gear Shapers - Non- CNC

MACHINING CENTRES

CNC Drilling & Tapping Machining Centre BLITZ 30

• Machining Centres - Horizontal

• Machining Centres - High Speed
• Machining Centres - Vertical
• CNC Drilling & Tapping Centre
• Flexible Manufacturing Cells
• Flexible Manufacturing Modules
• Flexible Manufacturing Systems

OTHER GPMs
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CNC Vertical Tool Room Milling Machine CTR-1

• Programmable Knee Type Milling Machine

• Turret Ram Type Milling Machine
• Column Drill
• Broaching Machine
• Knee Type Milling Machine
• Radial Drill
• Carbide Tool Lapping Machine
• Vertical Surface Broaching Machine

SPECIAL APPLICATION MACHINES

Machining Solutions –

For large size components

- For specialized applications
- For large volume productions

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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

DIE CASTING & PLASTIC INJECTION MOULDING MACHINES

Horizontal Cold Chamber pressure Die casting Machine DC 500

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.

26
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.

PRECISION BALL SCREW

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
27
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

Products & Services

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WATCHES

The Mechanical Range

Hand wound Gents & Ladies - Desh Ki Dhadkan

Automatic Day-date- The Watch that lasts & lasts

Series of Quartz Watches

Elegance

- Its all about YOU

29
Roman

- ONLY For MEN

Utsav

- The Well Dressed Watch

Sangam

- Absolutely Modern, Absolutely Indian

Lalit

- Value for Money, For those who value Money

Pace

- For cute faces

30
Swarna

- Good as Gold

Shreyas

- Sign of Good Times

Chandan

- The fragrance watch

Braille

- A gift of time to the blind & Also Customised watches for Institutions

Special Clocks

Tower Clock

31
Solar Clock

Population Clock

Display Clock

Floral Clock

International Clock

32
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
58
CS: Coastal Special DX: Direct Axle OS: Orchard Special

PRINTING MACHINERY

HMT’S Printing Machinery range includes:

34
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

35
 Ball Bearings
 Cylindrical Roller Bearings
 Taper Roller Bearings

The Pinjore Unit

36
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.

It has now two Divisions:

 Machine Tools Division

 Tractor Division

Machine Tool 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 1969 manufacture of broaching machines was taken up as imported a substitution available

in horizontal and vertical versions cutting speed with dead constant speeds ensuring optimum
tool life and fine surface finish.

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.

37
 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.

Products of HMT Pinjore Division:

 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.

38
Looking Beyond Tractors

High Speed 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 Diesel Engines

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.

39
 Marketing Mix Of HMT Machine Tools Ltd.

P’s Of Marketing for HMT Machine Tools

MARKETING MIX
The key to understand integrated marketing today is to understand the implications of the word
‘strategy’. A strategy is what you are going to do; a marketing strategy is the link between the
product and the market; it provides the much desired direction for allocation of marketing effort.
It is translated into an action plan through the tools of marketing management. These tools
together are called as MARKETING MIX. Individually they are Product, Price, Place, and
Promotion.

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.

PRODUCT MIX PRICE MIX

Marketing
Mix

PROMOTION MIX PLACE MIX

 Product
40
 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.

41
 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

• High Speed Precision Lathe NH 22/26/32

• High Speed Precision Center Lathe CRAFTMASTER
• CNC Lathe STARTURN
• CNC Center Lathe Pride M100
• CNC Lathe AUTOMANN 26
• CNC Lathe ECONO CNC 26
• CNC Lathe AUTOCOMP 55
• CNC Lathe STALLION 100
• CNC Lathe STALLION 200
• CNC High-Speed Turning Machine STALLION HS
• CNC Turning Center PUSHKAR 200
• CNC Turning Center SUPERTURN 20

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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

o SUPERCUT LATHE B32

o Heavy Duty Lathe L45/L50/L60/L70
o Medium Duty CNC Lathe B32 CNC
o Heavy Duty CNC Lathe L45 CNC/L50 CNC/L60 CNC/L70 CNC
o CNC TWIN SPINDLE CHUCKER TSC 20

• CNC AUTOMAT A16 CNC

• SLIDING HEADSHOCK AUTOMAT P7/P16
• CNC TURNINGMILL CENTER GDM
• MULTISPINDLE AUTOMAT GS/GF
• MULTISPINDLE AUTOMAT AS/ASH
• SEMI AUTOMATIC TURNING MACHINE SAT
• CNC TRAINMASTER LATHE T70 PC/ T100 PC

 MACHINING CENTRES

• VERTICAL MACHINING CENTRES

o VMC 400S/VMC 400M/VMC 500M/VMC 800M/VMC 1000/VMC

1200M/VMC 1600/VMC 5SM
o CNC TRAINMASTER MACHINING CENTER VMC 200T PC
o CNC DRILLING AND TAPPING CENTER BLITZ 30/DT40

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 • HORIZONTAL MACHINING CENTRES

o HORIZONTAL MACHINING CENTER HMC400M/ 500M/ 630/ 400/ 500/

4S
o HIGH SPEED HORIZONTAL MACHINING CENTER HSM 400/HSM 500
o HORIZONTAL MACHINING CENTER HMC800/ 1000/ 1250/ 1500

 MILLING, DRILLING & BROACHING

• CNC VERTICAL TOOL ROOM MILLING CTR 3V/ 5V

• RAM TYPE TURRET MILLING MACHINE TRM 3V/ 5V
• KNEE TYPE MILLING MACHINE FN2
• KNEE TYPE MILLING MACHINE FN3
• MILLING MACHINE FNR
• DOUBLE COLUMN CNC COORDINATE DRILLING & TAPPING MACHINE
CDM 25
• RADIAL DRILL RM
• BROACHING MACHINE RISZ/ RW
• DOUBBLE ENDED FACING & CENTERING MACHINE

 GRINDING MACHINES

• HYDRAULIC CYLINDERICAL GRINDER G17 / G22

• PRECISION CYLINDRICAL GRINDER ANUBHAV 130 & APURVA 175
• CNC CYLINDRICAL GRINDER SMART 125/175
• CNC CYLINDRICAL GRINDER CGM 225 CNC
• CNC UNIVERSAL GRINDING MACHINE GNC15
• CNC CYLINDRICAL GRINDING MACHINE G12 CNC
• HEAVY DUTY CNC UNIVERSAL GRINDER G60 CNC
• ROLL CAMBER/ CYLINDRICAL GRINDER GRC55
• HYDRAULIC SURFACE GRINDER SFW
• HORIZONTAL SPINDLE SURFACE GRINDER PSG200
• CNC VERTICAL SURFACE GRINDER CNC GVS 30/ CNC GVS40
• CNC SURFACE GRINDER SGC1 CNC
• CNC ROTARY SURFACE GRINDER RSG 500
• TWIN GRIP CENTERLESS GRINDER GCL140 FGH TG
44
 • PRECISION CENTERLESS GRINDER GCL60/1OO/140
• CNC INTERNAL GRINDER SMART IG 150/ GI 100 CNC
• CNC INTERNAL GRINDER GIN90 / 2A
• CNC INTERNAL AND FACE GRINDER GIN30/ 4A
• CNC INTERNEL GRINDER GIN 20/ 2A,3A AND 4A
• CNC INTERNAL AND FACE GRINDING MACHINE GIN16T/ 2A
• CNC BORE GRINDING MACHINE
• CNC DOUBBLE DISC GRINDER GDS 15 CNC/ 22 CNC
• CRANKSHAFT GRINDER GCS 500

 GEAR CUTTING MACHINES

• TRAINER GEAR HOBBER H125

• GEAR HOBBER H250/ H 400
• HIGH SPEED GEAR HOBBER L200
• CNC GEAR HOBBER H250 CNC (3 AXIS)
• CNC GEAR HOBBER H 400 CNC (2 AXIX)
• HIGH SPEED CNC GEAR HOBBING MACHINE L200 (3 AXIS)
• GEAR SHPER MESHMATIC S 150
• HIGH SPEED GEAR SHAPER W51
• CNC HIGH SPEED GEAR SHAPER WS1 CNC (1&3 AXIS)

 SPECIAL PURPOSE MACHINES

• BED TYPE MILLING MACHINES

• HORIZONTAL BORING & MILLING MACHINES (TABLE TYPE)
• FLOOR TYPE HORIZONTAL BORING & MILLING MACHINES
• CNC FLOOR BOARING MACHINE
• CNC 3-AXLES PLANOMILLING MACHINE
• CNC DOUBLE COLUMN PORTAL VERTICAL MACHINING CENTER
• 5-AXLES CNC GANTRY VERTICAL RAM TYPE PLANO MACHINING CENTER
(CNC GANTRY POWER MILL)
45
 • CNC VERTICAL TURNING MACHINES
• FLEXIBLE MANUFACTURING SYSTEM
• 7-AXLES CNC UNIVERSAL TRAVELLING COLUMN DRILLING,BOARING &
MILLING MACHINE
• MOVING COLUMN RAN TYPE MILLING AND BOARING MACHINE WITH 5
AXES CNC SYSTEM
• 5-AXES CNC HONEY COMB MILLING MACHINE
• 6-AXES CNC HIGH SPEED ROUTING AND DRILLING MACHINE
• CNC SEMI AND FINISHED LINE BOARING MACHINE
• CAMSHAFT MILLING MACHINE
• CNC 4-AXES CHUCKER
• CNC DRILLING AND REAMING MACHINE
• MULTISTATION ROTARY SPM
• HEAD TURNING AND MOUTH REAMING MACHINE
• 2-AXES HIGH SPEED PRECISION CNC CO-ORDINATE TABLE
• ROTARY INDEXING MACHINE
• DUAL SPINDLE CASE TRIMMING MACHINE
• FLASH HOLE DRILLING MACHINE
• DUPLEX MILLING MACHINE
• RUGGED DUTY EXTENDED REACH MANIPULATOR (RDM)
• THREE PIECE MASTER SLAVE SERVO MANIPULATOR
• SUB SYSTEM FOR ENGNEERING TOMOGRAPHY

 DIECASTING,PIM,PRESSES

• HORIZONTAL COLD CHAMBER PRESSURE DIECASTING MACHINES DC80

TO DC 1100
• MICROPROCESSOR CONTROLLED AUTOMATIC PLASTIC INJECTION
MODULING MACHINES P180 TO PI630
• PRESSES AND PRESS BRAKES
• MECHANICAL PRESSES E2S-100-SF/E2S-200-SF-E2S-300-SF

46
 • CUSTOM BUILT MECHANICAL PRESSES
• SPECIAL MECHANICAL PRESSES
• HYDRAULIC PRESSES
• HYDRAULIC PRESS BRAKES
• MECHANICAL PRESS BRAKES

 PRINTING MACHINES

• FIVE COLOUR SHEETFED OFFSET PRINTING MACHINES WITH

PERFECTOR SOM 536 V
• FOUR COLOUR SHEETED OFFSET PRINTING MACHINE SOM 436/ 431
• FOUR COLOUR SHEETED OFFSET PRINTING MACHINE SOM 425/ 204
• TWO COLOUR SHEETED OFFSET PRINTING MACHINE SOM 236/ 231
• TWO COLOUR SHEETED OFFSET PRINTING MACHINE SOM 225/
225N/220/220N
• SINGLE COLOUR SHEETED OFFSET PRINTING MACHINE SOM136/ 131
• SINGLE COLOUR SHEETED OFFSET PRINTING MACHINE SOM 125G/
125N/125B
• SINGLE COLOUR SHEETED OFFSET PRINTING MACHINE SOM 120/ SOM
120N
• MINI OFFSET PRINTING MACHINE PEARL 1217
• MINI OFFSET PRINTING MACHINE MOM 1015
• PROGRAMMABLE GUILLTINE PG 92 AND PG 115

47
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.

48
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
49
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.

The number of branches of HMT machine tools: 5

LOCATION OF BRANCH:
• BANGALORE COMPLEX

• PINJORE COMPLEX

• KALAMASSERY COMPLEX

• HYDRABAD COMPLEX

• AJMER COMPLEX

50
51
Bangalore Complex:
Machine Tools Division, Bangalore, HMT P.O., Bangalore 560 031

Telephone 91-80-5662 6850 / 52

Pinjore Complex:

Machine Tools Division, Pinjore 134 101. Dist. Panchkula

Telephone 91-1733-263 825-29

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

Machine Tools Division, Beavar Road, Ajmer 305 003

Telephone 91-145-244 0620 / 244 0670

SALES & SERVICE NETWORK

52
Marketing Network:

53
 • 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).

Some upcoming Exhibitions are as follows:

54
• 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

• TOOLtech 2008, 10th International Exhibition of Cutting Tools, Tooling Systems,

Machine Tool Accessories, Metrology & CAD/CAM 15 – 18 February 2008 at Bangalore
International Exhibition Centre [BIEC], Bangalore.

• IMTEX 2009 and IMTEX2010, 22- 28 January 2009

& 21 - 27 January 2010, Bangalore International Exhibition Centre [BIEC], Bangalore.

55
 Chapter – 2:
Project Profile

CONSUMER BEHAVIOUR/PREFERENCES

56
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

57
 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.

The detailed study of Consumer Behaviour or Consumer Preferences focuses on-

o Who Buys products or services?

o How do they buy products or services?
o Where do they buy them?
o How often do they buy them?
o When do they buy them?
o Why do they buy them?
o How often do they use them?

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.

CONSUMER DECISION MAKING

58
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-

 How well the product suits the consumer?

 Till what extent it satisfies the needs of the consumers and what are the
shortcomings?
 Does the product suit the budget/purchasing power of the consumer?
 How readily and easily the product is available in the market?

POST PURCHASE BEHAVIOUR:

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.

The purchase can be –

 Repeated Purchase i.e. buying the same product again.

 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

59
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

60
 MODEL OF BUYING BEHAVIOUR

MARKETING STIMULI OTHER STIMULI BUYER’S BUYER’S DECISION

PROCESS
CHARACTERICTS

 PRODUCT  ECONOMIC  CULRURAL  PROBLEM

 PRICE  TECHNOLOGICAL  SOCIAL RECOGONITIO
 PLACE  POLITICAL  PERSONAL N

 PROMOTION  CULTURAL  PHYCHOLOGICAL  INFORMATION

 PHYSICAL RESEARCH

DISTRIBUTION  EVALUATION
OF
ALTERNATIVES
 PURCHASE
DECISION
 POST
PURCHASE
BEHAVIOUR

CONSUMER DECISION MAKING PROCESS

61
 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.

62
 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

63
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.

Therefore in order to solve a research problem it is necessary to design a research

methodology for the easy and accurate solution of the problem.

SAMPLING AND SAMPLE DESIGN

SAMPLING:

64
 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 –

 Accuracy – It is the degree to which biasness is absent from the sample.

 Precision – It represents how well the sample represents the population in all
respect.

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

65
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.

Following questions have to be considered while sampling design-

 What is the relevant population?

 What is the parameter of interest?
 What is the sampling frame?
 What is the type of sample?
 What sample size is needed?
 How much will it cost?

SAMPLE SIZE:

66
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:

In this case Extensive Sampling would be used.

67
 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 –

 Primary Data Collection:

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.

Questionnaires have many positive features like-

• They are economical.

• They are free form the biasness of the interviewers.
• Respondents have adequate time to give well thought to their answers.
• Respondents can be reached conveniently.
• Large samples can be used and therefore the results are more dependable.

Before using this method “PILOT SURVEY” was conducted by me.

68
 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 COLLECTION:

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.

69
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.

71
 Chapter – 5:

DATA ANALYSIS
&
INTERPRETATION

72
 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.

73
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

 Customers in particular area seems to be having good knowledge about all

machines. They are very much aware about most of the companies.
 HMT and BFW are more familiar among the customers as compared to other
companies like BOTALIBOI, LMW.
 About 90%of customers were aware of BOTALIBOI, 86.33% each of LMW and
others.
 All of the customers were aware about HMT.

74
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.

75
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.

76
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.

77
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%.

78
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.

79
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%.

80
9. What impact has price got on the purchase of CNC Machine?

Interpretation

 Price has a very high influence on 36% of the respondents.

 49% of the respondents were highly influenced.
 25% were having a medium impact, where as 8% were very less influenced by
the price of the machine.

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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:

Facts and Findings

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

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 SWOT ANALYSIS

STRENGTHS
 HMT brand Value.

 Extensive dealership and service network.

 Fully integrated plant in Pinjore.

 Support of HMT in terms of deploying latest manufacturing technology, providing

engineering solution and maintenance back up for trouble-free running of tractors.

 Wide product range.

 HMT has experienced staff.

 It has adequate infrastructure, qualified manpower, office space and computer network
to support its activities.

 As a Govt. concern, it enjoys the full support of Govt.

 Efficiency of HMT Tractors and Machines is better then other competitors.

 Its brand has been well accepted in the market.

WEAKNESSES
 Turnover mainly coming from single product Tractor division.

 Morale of employees is not high.

 Present market share other then in machine tool is very less.

 Less usage of media for marketing.

 Product-image among customer is not good.

 Old plant requires substantial modernization

 Financial health of company is poor.

 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.

 Availability of cheap and liberal finance to consumers.

 Multipurpose machines will offer new market for the company.

 Free service camps are organized for the customer satisfaction.

 It has huge network of dealership all over the country.

 Provides good after sales services.

 Continuous growth in Tractor Industry in the Country.

THREATS
 Being a govt. undertaking its business may be affected due to change in govt. policy.

 Competition from other manufacture of transport vehicle.

 Not a good image of company among consumers.

 Slow down of expected demand of some of its products.

 Increased completion from domestic market as well as from international market.

 Lack of dealership in some cities.

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 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 discounts to the customers like the other competitors.

 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 .

 No purchase should be made till the old stock is disposed off.

 Company should take serious actions on the complaints of the buyers so that they are
fully satisfied and quality can be improved

 Worker participation in management should be encouraged. Company should give

autonomy to the employees so that they can take there own decision.

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 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

HMT workers and Management .

 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

the survey the Machines are good.

 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

Consumer Survey Form

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:

1. Do u have any CNC machine?

Yes

No

2. Are you aware of all the Major Market Players of Machine Tools?

Yes

No

3. Which Brand/Companies Machine do u own?

HMT

BFW

BATLIBOI

GERMAN MACHINE

CHINESE MACHINE

4. For how long does u have that Machine?

1-2 yrs

2-3 yrs

3-4 yrs

4-5 yrs

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>5 yrs

5. Does price bothers you before purchasing any Machine?

Yes

No

In some cases

6. Which factor influence you the most to purchase the Machine?

Brand Image

Price

After Sales service

Life period of Machine

Any other

7. Who influences you more in buying decisions of CNC Machines?

Self

Engineers

Past experience of
Machine

Other

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 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

Any other means

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

12. According to you which company gives most benefits to customers?

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

Books and Journals:

• Marketing Management: C.N. SONTAKKI

• Kotler , Principles of Marketing
• Kothari C.R., Research Methodology Methods and Techniques (Second Edition)
• HMT Machine Tools Catalogue

Web Sites:

• www.imtma.in/
• www.hmtmachinetools.com/
• www.hmtindia.com/

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