A SYNOPSIS ON Marketing Strategy Mahindra Home loan Submitted by JAVID BASHIR SHAHA MB.A.

2ND YEAR (Marketing) Under the guidance of Prof. SMEETA LANDGE TO, Sant Gadge Baba Amravati University Amravati (Maharashtra)

Chaitanya Bahu-Uddeshiya Sansthas Institute of Management studies, Amravati. Batch (2010 2012)

Chapter No. 1. 2. 3.

INDEX

Page No.

Introduction of Topic Company Profile Research Methodology i. ii. iii. iv. Study Research Objectives Research Design Scope of project Limitations of the

4.

Chapterisation

Executive Summary

The first phase of the project aimed at enhancing sales of Mahindra home loan and promotion for mahindra fianace. In order to execute the same, initial activities included visiting the outlets, recording the existing volume of sales & analyzing the emerging patterns in home loan. This helped in arriving at important conclusions regarding which were popular, problems faced by the retailers, points of contention between the retailers & Distributors, issues encountered by the consumers and which outlets were the most popular. Following this, strategies were devised in order to carry out the first part of the project. The key areas that were identified were as follows-

Increasing the sales at the existing outlets by implementing extensive branding and promotion.

Converting the competitors outlets to start stocking & selling mahindra products.

Increasing the popularity and improving service at home loan fianance. Once these problem areas were analyzed, the next step was to execute the strategies for addressing the problems.

1. In order to enhance the sales at the existing outlets, the activities undertaken included promoting the by putting up banners, advertisements, pops, placing brochures, print ads, price lists & pamphlets for introducing new varients.

2. Following this, the emphasis was on converting competitors outlets to start selling Home loan fianance. This was done by making them aware of the brand equity of Mahindra and informing them about the rising demand of the new and existing product line offered by mahindra. Also, the fact that mahindra offers more margins to the retailers.

3. To enhance the popularity of the loan in mahindra, various schemes and plans were suggested. One of them that was implemented was the buffet scheme where one could have unlimited amount. This scheme ran for 2 days over a weekend on 11th & 12th June. The offer was a big hit and served the purpose of trial of the new flavors.

INTRODUCTION OF THE TOPIC

Mahindra Rural Housing Finance provides cost-effective and flexible home loans to a wide base of customers in rural and semi-urban India. Providing loans for home construction, purchase, extension and improvement, MRFHL makes sure that its customers basic need of shelter is met for expediently. MRHFL tries to live up to its slogan Ghar Ki Baat Hai by being highly customer centric while considering the customers as a part of its extended family.

Mahindra Rural Housing Finance, a subsidiary of MMFSL, provides costeffective and flexible home loans to a wide base of customers in rural and semi-urban India. Providing loans for home construction, purchase,

extension and improvement, we make sure that our customers basic need of shelter is met for expediently. Home Loans available for: Home Construction: Upon a land you have purchased or are planning to purchase, we will finance the construction cost of the house or the construction cost plus the purchase value of the land. Home Purchase: Our finances are also available for the purchase of your permanent house, with valid building approvals. This could be a bungalow, row house etc. or even a flat. The property being financed could be ready for occupation, under construction or could even be a second sale. What will NOT be financed:

Temporary structures or any structure not having the requisite approvals Loans for commercial properties Loans against property i.e. wherein a person owns a house and is mortgaging it to raise finance for some other use Home Extension: If youre planning to increase the floor or ceiling space or are planning to add rooms to your house, our home loans will be made available. Home Improvement: For all expenditures related to the refurbishment of your house, such as changing the flooring, etc., our home loans will be made available. 3

Mahindra Rural Housing Finance, a subsidiary of MMFSL, provides costeffective and flexible home loans to a wide base of customers in rural and semi-urban India. Providing loans for home construction, purchase, extension and improvement, we make sure that our customers basic need of shelter is met for expediently. Home Loans available for: Home Construction: Upon a land you have purchased or are planning to purchase, we will finance the construction cost of the house or the construction cost plus the purchase value of the land. Home Purchase: Our finances are also available for the purchase of your permanent house, with valid building approvals. This could be a bungalow, row house etc. or even a flat. The property being financed could be ready for occupation, under construction or could even be a second sale. What will NOT be financed:

Temporary structures or any structure not having the requisite approvals Loans for commercial properties Loans against property i.e. wherein a person owns a house and is mortgaging it to raise finance for some other use Home Extension: 3

If youre planning to increase the floor or ceiling space or are planning to add rooms to your house, our home loans will be made available. Home Improvement: For all expenditures related to the refurbishment of your house, such as changing the flooring, etc., our home loans will be made available.

. Company profile.

Mahindra Rural Housing Finance, Ltd. provides loans in rural and semiurban areas for buying, repairing, and constructing new homes in India. The company is based in Mumbai, India. Mahindra Rural Housing Finance, Ltd. operates as a subsidiary of Mahindra & Mahindra Financial Services, Ltd. Mumbai, India Mahindra &Mahindra has grown leaps and bounds in the last two decades riding on the wave of economic liberalization and has undertaken a radical re-engineering of its shop floor, a restructuring of its corporate core and a refocusing of its strategy around a smaller group of businesses. Deliberate decisions were made to sell off its oil drilling and business machines businesses, and to concentrate on vehicle production. To have the greatest chance of being globally competitive, Mahindra group had to doa lot of 4

introspection and had to restructure the company into multiple businesses and provide leadership support to drive long term strategies, human resources, and capital. We will limit our study to 5 important business segments of the group i.e. Automotive, Farm Equipment, Financial Services, Information Technology and Hospitality sector and will conclude with the corporate strategy based on our understanding.

History

The birth of Mahindra &Mahindra began when K.C Mahindra visited the United States of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't avehicle that had proved its invincibility on the battlefields of World War II be ideal for India's rugged terrainand its kutcha rural roads?Swift action followed thought. The Mahindra brothers joined hands with adistinguished gentleman called Ghulam Mohammed. And, on October 2nd, 1945,Mahindra & Mohammed was set up as a franchise for assembling jeeps from Willys, USA.3 It got renamed as Mahindra &Mahindra after Mohammed has left the India during partition.

Key developments for Mahindra Rural Housing Finance Ltd. Mahindra Rural Housing Finance Ltd. Reports Consolidated Earnings Results for the First Quarter Ended June 30, 2011, 07/29/2011 Mahindra Rural Housing Finance Ltd. reported consolidated earnings results for the first quarter ended June 30, 2011. For the quarter, profit after tax registered a growth of 53% at INR 17.0 million as against INR 11.1 million for the same period earlier. Total income increased by 42% at INR 5,850 million against INR 4,130 million for the same period earlier. Profit after tax increased 31% at INR 1,050 million against INR 800 million for the same period earlier. Mahindra Rural Housing Finance Ltd. Reports Earnings Results for the Nine Months Ended December 31, 2010 , 01/21/2011 Mahindra Rural Housing Finance Ltd. reported earnings results for the nine months ended December 31, 2010. The company disbursed INR 1,362 million as against INR 492 million disbursed for the same period a year ago. PAT was INR 61 million against INR 9 million for the same period a year ago. Mahindra Rural Housing Finance Ltd. Reports Earnings Results for the Year Ended March 31, 2010

04/22/2010 Mahindra Rural Housing Finance Ltd. reported earnings results for the year ended March 31, 2010. For the year, the company registered income growth of 220% at INR 160 million as against INR 50 million in the previous year. The profit after tax was at INR 20 million as against loss of INR 10 million registered in the previous year.

Current scenario

Owning a home, is every person's dream come true. But the ever escalating property price and sky rocketing interest rates act as a great hindrance to all. Even if one decides to buy a home through home loan finance, the very prospect of meeting several home loan providers to check out their current home loan rates before reaching a final decision, scares the wits out off the buyers mind. We at PaisaWaisa, value for your time and money. We act as a link between the home loan seekers and the money lenders. Now you need not run after the banks comparing their fixed and floating rates Come and fill our application form and let the prominent money lenders chase you to grant the home loans at the best competent interest rates. Our list of home loan providers includes the prominent names like SBI Home Loans, ICICI Bank Home Loans, IDBI Bank Home Loans, HDFC Bank Home Loans etc That's not all! Our Home Loan Calculator and Comparator enables you to compare the best home loan rates, in the money market. So now, just set your eyes on your dream home and let us worry about your home loan. We guarantee you the experience, you will cherish forever. One will be able to recollect the period during the 1929 depression with a similar torrid situation. The current era of economic and financial downturns is now prevalent on a global scale with most of the countries who deem themselves as superpowers feeling the bite with perhaps the most painful sensation. USA is one of them, and is also the perhaps the

breeding ground of this crisis due to the 'not so efficient' management of its lending business. Certain brainchild of Wall Street which were supposed to be quite effective and, therefore, ended up in swelling the liquidity of the American economy. These were the mortgage based securities and collateral based obligations which increased the process of boom and led to lenders having a reduction in the degree of their caution.

The resultant sub prime crisis which is a mayhem generated as a result of mismanagement of bad credit home loans has led to this global turmoil. The whole economy strings its tunes to some extent with the happenings in the US economy and, therefore, this era of recession has taken place.

The Indian economy has also felt the brunt of this recession specially in the sector of home loans where floating rates rose to unmanageable levels. The situation is, however, not hopeless due to the steps that are being taken by the Indian government. One of the major steps has been the reduction in the repo rate as well as the cash reserve ratio, which has started to the process of improvement in this sector. Along with this, many other steps have also been taken to increase the liquidity factor. The situation in the economy has , therefore, taken the path of improvement once, again. Another notable factor is the relatively less degree of aftermaths being felt by the Indian financial system, when compared with the dwindling economies of most of the major developing nations and with the developed nations also being in major problems. This, therefore, justifies the the

strength of the Indian economy which has been devised in a wonderful manner by our first financial thinkers of our nation.

1. Objective To Study marketing strategy of Mahindra finance regarding home loan. The impact of marketing strategy on the sales of the company. Customer perception toward the marketing strategy of Mahindra. To check awareness ,rate acceptance innovation excietement among customer as well as employee. 2. Limitations of study

The data will collected respondents from 100 only as the time restriction is there.

Due to restriction of the time and area data will be collected only from Amravati city.

RESEARCH PROCESS In the first month, the summer interns were asked to prepare a questionnaire to understand the buying behavior of consumers towards Mahindra home loan fianance as mahindra was coming with new variants of home loan where we need do know the awareness amog the customer .So that we can reach maximum of our consumers visiting the rural areas. Consumers are also made available with a questionnaire which was prepared by us. This questionnaire helps us to find consumer requried pattern and habits towards fianance sector. It also helped us in finding the loopholes about why consumers do not prefer our home loan in Mahindra. It also helps us to find different practices and marketing strategies adopt by our competitors. Along with the above mentioned tasks, we were also expected to pitch into new strategies and to conduct consumer cum sales promotion for Mahindra home loan fianance . However, the brand name that mahindra commands is much superior to its competitors and this was observed especially in areas dominated by other communities. It is also equally popular amongst the middle class as its pricing is kept at a good margin below its competitors

TYPE OF RESEARCH

Exploratory Research: The research work was Exploratory in nature and was meant to provide the basic information required by research objectives. A preliminary study and findings can be further consolidated after detailed conclusion study has been carried out.

Research Approach: Survey A survey is a research technique used to gather information from a sample of respondents by employing a questionnaire. Normally surveys are carried out to obtain primary data. Data Collection Instrument: Questionnaire A questionnaire is a set of structured questions to be asked from respondents in a particular order with appropriate instructions. A questionnaire serves four functions enables data collection from respondents, lends a structure to interviews, provides standard means for writing down answers and help in processing the data collected. Type of questionnaire used: Structured Non-disguised Structured-The questions used were not open- ended and respondents had to answer from the

given options given. Non-disguised-The questions asked did not in any way shield the name of the brand that is conducting the survey. The questions openly give out the name of Amul in the questionnaire. Secondary Data:

Apart from the Department of primary data certain secondary data were required for this project. Followings are the main sources of secondary data:

Annual Reports & Budget Report Manual Report News papers Internet Books & Magazines Sampling Plan: Consumers Simple random sampling

Retailers Simple random samplings

Questioner based on customer Name of the customer. 1) Annual income a)50000 to 100000 c)150000 to 200000 b) 100000 to 150000 d)200000 to more

2) Occupation of the customer A )Self emploed B) student

Q. 1, Purpose of the loan

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Category 1 cunstruction other property purchase

Result :- 4.5 % people having an custruction purpose of loan and 3.5 % people hve property purpose and 25 people have other perpose to taking loan.

Q 2. Whether the Rate of interest is affordable or not ?

rate of intrest

yes no

Result :- 25% people says that the rate of intrest is not offerable while 75% people says it is offerdable.

Q 3. Is the employee of Mahindra is co-operate you or not ?

10 9 8 7 6 5 4 3 2 1 0 Category 1 no yes

Result :- 30% people says that the employee of mahindra is not co operate while 70% people says yes

Q. 4. In how many days you get loan ?

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Category 1 one month two month three month other

Result :- 4.5 people S

Q. 5. Is the company fulfill its condition or not ?

7 6 5 4 3 2 1 0 yes no

Employee based Questioner

Name of the customer.

3) Annual income a)50000 to 100000 c)150000 to 200000 b) 100000 to 150000 d)200000 to more

4) Occupation of the customer A )Self emploed B) student

Q. 6. Is the customer full fill all the condition which is required to company ?

customer condition

yes no

Q. 7. Is the marketing strategys cost affordable or not ?

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 yes no

Q 8. Is sale of company is in profitable due to marketing strategy ?

Sales

yes no

Q 9. Whether the customer full fill all installment time to time ?

8 7 6 5 4 3 2 1 0 yes no

Bibliography

Annexture

Customer based Questions

Name of the customer. 5) Annual income a)50000 to 100000 c)150000 to 200000 b) 100000 to 150000 d)200000 to more

6) Occupation of the customer A )Self emploed B) student 7) Purpose of the loan a) Construction b) property purchase

b) Any other 8) Whether the Rate of interest is affordable or not a) Yes b) No 9) Is the employee of Mahindra is co-operate you or not a) Yes b) No 10) Is there any complication in taking loan from Mahindra finance a) Yes b) No 11) In how many days you get loan a) One month b) two month b) Three month d) other . 12) Is the company fulfill its condition or not a) Yes b) No 13) a)yes Is the company fulfill all the promises given to you . b) No

14) Any suggestion \Recommendation from your side from the improvement of the company policy.

Employee based Question 1)Name of the customer

 2) occupation of the customer a) student b) employee

c)

professional

d)

3) Annual income a)50000 to 100000 c)150000 to 200000 b) 100000 to 150000 d)200000 to more

4) Is the customer full fill all the condition which is required to company

a)Yes

b) No

5) Is the marketing strategys cost affordable or not a) Yes b) No

6) Is sale of company is in profitable due to marketing strategy

a)

Yes

b)No

7)Whether the customer full fill all installment time to time

a)Yes

b) No

8) Is the marketing strategy profitable or not.

a) Yes

b) No