Behavior of Passenger Car Owners in case of Purchasing Tyre- A Case Study on Rahimafrooz Distribution Limited (RDL)

Integrity

Excellence

Customer Delight Innovation

Internship Report On

Behavior of Passenger Car Owners in case of Purchasing Tyre- A Case Study on Rahimafrooz Distribution Limited (RDL)

Course Code-Bus Submitted To

Mr. Habib Anwar pasha Assistant Professor Faculty of Business Administration Eastern University

Submitted By
Farhana Banu ID: 062200020 Faculty of Business Administration Eastern University Email: farha.mu@gmail.com

Date of Submission:2010

Eastern University

LETTER OF TRANSMITTAL
10th June, 2010

Mr. Habib Anwar Pasha Senior Lecturer Faculty of Business Administration Eastern University Subject: Submission of internship report. Dear Sir, It was a privilege and great pleasure for me to submit my internship report titled Behavior of Passenger Car Owners in case of Purchasing Tyre which has been prepared as a part of my degree requirement. I have tried my best to follow the instructions of my supervisor in preparing this report. While preparing this report I had to went through with a survey to the customers who use private car for their transportation. Beyond any doubt it enriches my knowledge and also promotes my learning experience. I hope, you would find this report up to your expectation. I would be grateful to receive your suggestion and comments regarding this.

Sincerely yours,
-------------------

Farhana Banu ID: 062200020

Faculty of Business Administration Eastern University

STUDENT DECLERATION
This is Farhana Banu 10th batch, ID: 062200020 has declared that the internship report has prepared for academic purpose. Every statement in this report is true. No part of this report has been published in any magazine or journal.

Farhana Banu 10th Batch ID: 062200020 BBA Eastern University

AUTHORISED DECLERATION

This is to certify that Farhana Banu 10th batch, ID: 062200020, is a regular student of BBA. She has completed her internship successfully at Rahimafrooz Distribution Ltd. The internship report has prepared for academic purpose. No part of this report has been published in any magazine or journal. We wish her every success.

Mr. Habib Anwar Pasha Sr. Lecturer Faculty of Business Administration Eastern University

ACKNOWLEDGEMENT
At the very beginning, I would like to express my sincere gratitude to Almighty Allah, who has given me the chance to complete my internship report in a very comfortable manner. My gratitude and thanks goes to my respected supervisor Mr. Habib Anwar Pasha, Lecturer, Faculty of Business Administration, Eastern University, who cooperated me all through the times for completing my internship report. I have conducted my report on Consumer behavior in purchasing tyre for passenger car owner For which; I want to express special thanks to all the employees of RDL at Motijheel. I want to mention special thanks to Mr. Sayed Mahmudul Hasan, Product Manager of tyre, Mr. Kazi Abidul Hoque, Market Development Manager of tyre, Mr. Manas Paul, Product Executive of Battery. I would also like to give special thanks to Mr. Sharif Moinul Hossain, Senior Officer of HR of RDL, who helped me in the entire period of three months whenever I need him.

I wish to take this opportunity to extend gratitude to all those who supported me to complete this report. These people gave me their valuable time. I express my special honor to them.

EXECUTIVE SUMMARY
In Bangladesh the number of using private car as a media of transportation has grown rapidly for the last few decades. Now-a-days there are huge number of passenger cars in Dhaka city. Almost all middle class to upper class people use car for their mode of transport. As technology is developing day by day the demand of car is also increasing day by day. So, in case of passenger car Tyre is an important part of a car. In Bangladesh most renowned tyre are sale by the leading company named Rahimafrooz. Rahimafrooz operates in three broad segments automotive after market, power and energy, and retail. While these Group activities are coordinated from the Rahimafrooz Corporate Office (RACO), they have eight Strategic Business Units (SBUs), three other business ventures, and a not-for-profit. Rahimafrooz Distribution Ltds (RDL) portfolio includes international tyre brands Dunlop, Kenda while it also carries very own brand RZ Tyre. Battery brands for the local market are Lucas and Spark. RDL is the exclusive franchisee of the full range of worlds leading lubricant brand Castrol. Through Rahimafrooz IPS, UPS and Voltage Stabilizers, the Company enjoys clear leadership of the emergency power products market. Besides, it also runs two Automobile service centers in Dhaka and Chittagong.

In this report I have tried to find out and analysis the factors that customers considers in purchasing tyre. For this purpose I have done a survey based on some questionnaire, and also did the frequency analysis, Crosstabs analysis. The objective of the report is to find out the behavior of consumers in case of tyre. This report is a descriptive type of research. For that I have to follow some methods like, the sample size was 100, and non probability sample, and many other things.
V.

After conducting the research it was found out that consumers prefer Rahimafroozs tyre, because Rahimafrooz provide quality products, they like to purchase from dealer and retailer, they mainly get information of tyre from print media. There some points that needs to improve in Rahimafrooz distribution Ltd .For example, they can improve their local manufactured tyre of RZ, they can give TV commercial ad, etc. At the end it is clear that Rahimafrooz provides quality product till now and consumers are satisfied by their products. Consumers have little complains about RDL. And in case of tyre most customers prefer to buy the tyre from Rahimafrooz, as it is one of the finest companies in Bangladesh.

VI.

Table of Contents
CHAPTER - 1 - 1 CHAPTER INTRODUCTION 1.1 Origin of the report...1 1.2 Problem statement2 1.3 Justification..3 1.4 Literature review...2-3 1.5 Objective..3 1.6 Scope of the report...4 1.7 Limitations...4 1.8 Methodology.4-5 CHAPTER - 2 COMPANY OVERVIEW 2.0 About Rahimafrooz..6 2.1 History of the company.6-7 2.2 Rahimafrooz Distribution Ltd...7-8 2.3 Organizational..8 2.4 Vision, values, aspiration, quality policy9-10 2.5 Product/brand of the company..10-13 2.6 Market: national/international...13-14 2.7 Performance over the year15-16 2.8 SWOT Analysis16-17 2.9 Areas to be improve...17 CHAPTER - 3

FINDINGS 3.1 Frequency analysis 18-27 3.2 Cross-tabs analysis28-31 CHAPTER - 4 RECOMMENDATION CONCLUSION Recommendation32 Conclusion..33 CHAPTER - 5 APPENDIX & BIBLIOGRAPHY Appendix34-38 Bibliography.39

PART - 1
Introduction Part

1.0 Introduction
Consumer behavior means the behavior that consumers display in searching for purchasing, using, evaluating, and disposing of products, services, and ideas. Consumer behavior focuses on how individuals make decisions to spend their valuable resources, that means what they buy, why they buy, when they buy, where they buy, and how often they buy the products Consumers are like asset for any company. Now-a-days every company tries to satisfied their customers through their products and earn profit. But understanding consumer behavior is very tough for the companies. It is very hard to find out whether the customers are fully satisfied or not. The behavior of consumers changes over time and whenever there is new or different products in the market consumers may changes their behavior toward existing products.

If any company wants to keep their customers for long time and make them loyal to their products every company have to understand their customers behavior. It is very important to understand the behavior of customers and then providing the products or services according to the customers need and wants. As it is an important issue, so I have decided to do research on passenger car consumers behavior towards tyre. For that I have conducted a research on the customers of passenger car owners.

1.1 Origin of the Report

This report has been made as the course requirement of Internship in BBA course. The topic for this report has been chosen by my both supervisors, organizations supervisor Mr. Mahmudul Hassan, Product manger of Tyre, and institutional supervisor Mr. Habib Anwar Pasha, Lecturer, Faculty of Business Administration. This report contains the consumers reactions toward tyre they use, and their satisfaction level about the product.

1.2 Problem Statement and Justification

The behavior of passenger car owner in purchasing tyre is unknown. The behavior of passenger car owner in purchasing tyre is unknown because there are many branded tyre in the market and different consumers prefer different tyre for their cars.

PART - 2

Company Overview

2.0 Rafimfafrooz
With a country-wide distribution network of 173 Dealers, 275 Retailers and 101 Lubricant Dealers, Rahimafrooz Distribution Limited (RDL) is the foremost consumer facing SBU of the Group that carries more than ten national and international brands. RDL is the clear leader in its automotive after market and emergency power product categories.

2.1 History of the company

The Rahimafrooz journey dates back to the early fifties when Late Mr. A C Abdur Rahim founded a small trading company and paved the way for making of one of todays leading Bangladeshi business conglomerates. Over the decades, Rahimafrooz has grown in size, scale, and diversity. The Group today has seven Operating Companies (SBUs), three other business ventures, and a non-profit social enterprise. As of 2007, the Group currently employs more than two thousand people directly and a further twenty thousand indirectly as suppliers, contractors, dealers, and retailers. The major milestones in Rahimafrooz history can be summarized as below: Incorporated in 1954 by late Mr. A.C. Abdur Rahim Distributorship of Lucas battery in 1959 Exclusive distributorship of Dunlop tyre in 1978 Acquisition of Bangladesh operation of Lucas UK in 1980 First producer of industrial battery in 1985 Pioneering solar power in collaboration with BP in 1985 First ever battery export to Singapore in 1992 Launched Rahimafrooz IPS in 1993 Acquisition of Yuasa Batteries (Bangladesh) Ltd. in 1994 Attained ISO 9002 certification for RBL operations in 1997 First India office opened in Ahmedabad in 2000 Awarded Bangladesh Enterprise of the Year in 2001 Attained ISO 14001:1996 for RBL operations Launched Agora the first ever retail chain in 2001 Launched Rahimafrooz Energy Service in 2002 promoting distributed power Established Rahimafrooz CNG ltd. in 2003

 Awarded National Export Trophy in 2003

Metro net Bangladesh, a fiber optic based digital solution provider for in 2004

Received McGraw-Hill Platt Global Energy Award for Renewable Energy in 2004 Received the Ashden Award for Sustainable Energy in 2006 The Group celebrated its 50th anniversary on April 15, 2004 Established Rahimafrooz Globate Limited and Rahimafrooz Accumulator limited in 2009.

2.2 Rafimfafrooz Distribution Limited

With a country-wide distribution network of 173 Dealers, 275 Retailers and 101 Lubricant Dealers, Rahimafrooz Distribution Limited (RDL) is the foremost consumer facing SBU of the Group that carries more than ten national and international brands. RDL is the clear leader in its automotive market.

2.2.1 RDL Portfolios

RDLs portfolio consists of battery, IPS, UPS, tyre, etc. The portfolio is like below:

2.3 Organizational Structure

The organogram of Rahimafrooz for marketing tyre is like below:
Marketing Manager-Tyre (MMR)

Product Manager (SYM)

Market Dev Manager (KAH)

Customer Service

Sr. Product officer (AMU)

Product Officer (TBA)

Market Dev Officer

Customer Service Ex (AGR)

2.4 Vision, Values, Aspiration, Quality Policy

2.4.1 Vision
The vision of RDL is To be the most admired and trusted organization through excelling in everything we do following ethical business practices, and adding value to stake holders.

2.4.2 Values
The values of Rahimafrooz are like below:
Integrity in all our dealings: Rahimafrooz never compromises on ethical business

practices. They set high standards of ethics and moral virtues for themselves. They believe their commitment to integrity should never be compromised for the sake of business goals or anything.
Excellence in everything we do: Their pursuit for business success has thrived on

a very simple yet powerful philosophy quality comes first! They have maintained highest quality standards in their operations, processes, products and brands, always keeping in mind that they cant afford to be anything less than the best. They strive for quality excellence.
Total commitment to customer satisfaction: It takes months, years, in some cases

decades, to win a loyal customer. But it takes only a few seconds to lose one. Rahimafrooz thrives on winning loyal customers through best quality products and service. Most importantly, it believes in keeping its customers loyal though sustained quality, amazing service performance and superior customer relations.
Thinking ahead and taking new initiatives: They have always tried to stay ahead

in terms of thinking, decision making and competition. Their product development, business investment, people processes, technology utilization etc. stand testimony to this fact. They believe in being creative, innovative, and intelligent risk takers.

2.4.3 Aspiration
The aspiration of Rahimafrooz is We want to be the most admired and trusted organization through excelling in everything we do, following ethical business practices and adding value to our stakeholders

2.4.4 Quality policy

In case of quality policy Rahimafrooz believes We are totally committed to customer delight through operational excellence, innovation and continual improvement of quality

2.5 Product/ Brand of the company

At Rahimafrooze the following product/ brands are available in case of tyre:

Rahimafrooz is the sole distributor for Dunlop tyres in Bangladesh. Distributor for Dunlop is offering with wide size range covering Off the Road, Truck Bus, Light Truck, Passenger Car, and Motor Cycles. Rahimafrooz also provides technical assistance to motorists for appropriate tyre application, care, and maintenance.

RZ tyre a premium quality cost effective tyre was launched in 2000. This heavy duty Truck and Bus tyre is specially designed for the rough roads. Since its introduction it has become the preferred choice of many Institutional, Corporate, Local, and Multinational Companies.

Other brands: The branded tyre that are distribute by Rahimafrooz are:

2.5.1 Segmentation of Tyre

The tyre categories of Rahimafrooz are segmented as below:

TB

MC
TYRE

LT

AR

PC

TB > Truck Bus

LT > Light Truck

PC > Passenger Car

AR > Auto Rickshaw

MC > Motorcycles s

2.5.2 Country of Origin

The countries from where Rahimafrooz brings tyre in our country are as follows:

DJ DN DI II DR RK DK

-DUNLOP JAPAN -DUNLOP INDONESIA -DUNLOP INDIA -INDUS INDIA -D MASTER THAILAND -RUBBER KING -DUNLOP TUBE KOREA

2.5.3 Claim Settlement

If customers have any claim over the product of Rahimafrooz then the organization takes the whole procedure as below table or chart:

CLAIM SETTLEMENT
CUSTOMERS

DEALER / RETAIL UNITS

CUSTOMER SERVICE UNITS ACCE PT

REJECT

REBETE / COMMERCIAL CLAIM

BACK TO CUSTOMERS

2.6 Market: national/international

Rahimafrooz operates in three broad segments automotive after market, power and energy, and retail. While the Group activities are coordinated from the Rahimafrooz Corporate Office (RACO), it has more than eight Strategic Business Units (SBUs), three other business ventures, and a not-for-profit social enterprise. These are as follows:

 Rahimafrooz Bangladesh Ltd. Company {Parent Company} Rahimafrooz Batteries Ltd. Rahimafrooz Distribution Ltd. Rahimafrooz Energy Service Ltd. Rahimfrooz Superstore Rahimafrooz CNG Ltd. Rahimafrooz Accumulator Ltd. Rahimafrooz Globate Ltd. Rahimafrooz Renewable Energy Ltd. Excel Resources Ltd. RDL has strengthened their market leadership at home while reaching out to international markets. Ranging from automotive after market products, energy and power solutions, to a world class retail chain the team at Rahimafrooz is committed to ensuring best in class quality standards and living the Groups four core values Integrity, Excellence, Customer Delight and Innovation. Rahimafrooz has been a partner in the development journey of this nation for more than fifty years now. They set their highest standards in responsible corporate behavior and our passion for success is aligned with the development journey of Bangladesh. We, at Rahimafrooz as an organization, are committed to playing a leading role in driving growth, prosperity, ethical values and social responsibility. Rahimafrooz Group will continue to serve its customers through unparallel quality excellence and service superiority.

2.7 Performance over the Years

Here we will see the market composition of passenger car (PC) tyre, category performance of PC tyre by dealer, retailer, and institute 2.7.1 Market Composition of PC tyre The market composition for passenger car tyre in 2009 was like below chart:

Market Composition of PC Tyre

3500, 16%

1400, 7% 8300, 39%

Indoneshia Japan China Taiwan

3700, 17% 4400, 21%

India

2.7.2 Market composition of TB tyre The market composition for Truck Bus tyre in 2009 was like below chart:

TB Market Composition

24% TBR TBX 76%

2.7.3 Market composition of LT tyre The market composition for Light Truck tyre in 2009 was like below chart:
LT Larket Composition

8%

LTR LTX

92%

2.7.4 Market composition of AR tyre The market composition for Auto Rickshaw tyre in 2009 was like below chart:
AR Market Composition

2% 34% Others Bangladesh 64% India

2.8 SWOT Analysis

Here are the SWOT analysis that means strength, weakness, opportunity, and threat of RDL:

2.8.1 Strength: The strength of Rahimafrooz Distribution is:

Branded company Quality product

 Doing business for over the last 50 years in Bangladesh Market growth in all segments Special discount on over stock items Local manufacturing of RZ tyre

2.8.2 Weakness: The weaknesses of Rahimafrooz Distribution are:

Positioning problem in case of RZ tyre Non availability of FMCG sizes in case of Indus tyre Non active key dealers Dissatisfaction on given incentives against 2008- 09 purchase Impact of new dealers incentive policy or cash purchase

2.8.3 Opportunity: The opportunity of Rahimafrooz Distribution is:

They are planning for going to make the company multinational company in future.

2.8.4 Threat: The threats of Rahimafrooz Distribution are:

Multi brand management Ensure growth in PC segment Competition with channel members Dealer activation

2.9 Areas to be Improve

There are certain areas where RDL needs some improvement like,

 The prices of Dunlop tyre are too high, only high class people can afford it. Moreover their service needs to improve, they should have an measurement technique for measure the satisfaction, level of customers They should maintain more good relation with their dealers, almost all the dealers are not highly satisfied with the service they give to them.

PART -3 3
Project Part

3.0 Introduction
As we already know that there are different branded tyres in the market and different consumers prefer different tyre for their car. There are many other things that influence a consumer to purchase a tyre like price, promotional activities, discounts or credits facility, place of purchase, dealer, retailer, quality of the product etc. So it is very important for a tyre company to know the factors that affect the customers to buy a tyre.

3.1 Problem Statement

The behavior of passenger car owner in purchasing tyre is unknown.

3.2 Justification
The behavior of passenger car owner in purchasing tyre is unknown because there are many branded tyre in the market and different consumers prefer different tyre for their cars.

3.3 Literature Review

Relationship marketing Relationship marketing emerged in the 1980s as an alternative to the prevailing view of marketing as a series of transactions, because it was recognised that many exchanges, particularly in the service industry, were relational by nature (Berry, 1983; Dwyer et al., 1987; Grnroos, 1994; Gummesson, 1994; Sheth and Parvatiyar, 2000). Within a retail banking setting,

Walsh et al. (2004, p. 469) define RM as the activities carried out by banks in order to attract, interact with, and retain more profitable or high net-worth customers. Relationship marketing thus aims at increasing customer profitability while providing better services for customers. Several studies have empirically demonstrated a positive association between RM strategies and business performance (e.g. Naidu et al., 1999; Palmatier and Gopalakrishna, 2005). Within a banking context, Keltner (1995) found that German banks, in 5 contrast to American banks, managed to maintain a stable market position during the 1980s and early 1990s as a consequence of relationship oriented banking strategies. RM will not automatically lead to stronger customer relationships; rather, customers will exhibit different levels of relationship closeness and strength (Berry, 1995; Liljander and Strandvik, 1995). In order to be attractive, RM strategies should enhance customers perceived benefits of engaging in relationships (OMalley and Tynan, 2000). However, all customers do not want to engage in relationships and, in fact, it has been suggested that close customer relationships in banking are rare, and that they are being further weakened by the increase in self-service technologies (OLoughlin et al., 2004). An alternative is to look upon new technologies as relationship facilitators (Sweeney and Morrison, 2004) and to use them strategically in customer relationship management (Payne and Frow, 2005). One of the basic tenets of relationship marketing is customer orientation. Already the SOCO (selling orientation-customer orientation) scale, developed by Saxe and Weitz (1982), was based on the premise that customer oriented sales people strive to increase customers long-term satisfaction. Selling oriented sales people were considered to prioritise the achievement of an immediate sale at the expense of customer needs. Subsequent research has shown that the degree of customer orientation indeed has an effect on a firms relationships with its customers (Clark, 1997; Yavas et al., 2004). In a study of financial services, Bejou et al. (1998) found that customer oriented employees had a positive impact, while sales oriented employees had a negative impact, on customers relationship satisfaction. To our knowledge, there are no previous studies on the effect of RM activities on customer loyalty in different profitability segments. Before describing profitability segmentation, we will briefly review two desired relationship outcomes, customer relationship satisfaction and loyalty. 6 Customer relationship satisfaction Customer evaluation measures should reflect the type of exchange that is being evaluated, i.e. transactional or relational. Often used measures in a relationship context are relationship quality (e.g. Bejou et al., 1996; Crosby et al., 1990; Lang and Colgate, 2003), and relationship satisfaction (e.g. Abdul-Muhmin, 2002; Rosen and Surprenant, 1998). A positive relationship between service quality and satisfaction has been well established in the banking sector (e.g. Ennew and Binks, 1999; Jamal and Naser, 2002; Hooi Ting, 2004). However, the constructs are highly correlated and sometimes difficult to separate in transactional interactions (Bitner and Hubbert, 1994), but even more so from a relationship perspective (Dabholkar, 1995). In longterm relationships perceived quality and satisfaction are likely to merge into an overall evaluation of relationship satisfaction. Customer loyalty Customer loyalty is defined as a deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-

set purchasing, despite situational influences and marketing efforts having the potential to cause switching behaviour. (Oliver, 1999, p. 34). As illustrated in the definition above, loyalty has both an attitudinal and behavioural dimension (Dick and Basu, 1994). It is assumed that customers who are behaviourally loyal to a firm display more favourable attitudes towards the firm, in comparison to competitors. However, in some cases behavioural loyalty does not necessarily reflect attitudinal loyalty, since there might exist other factors that prevent customers from defecting (Aldlaigan and Buttle, 2005; Liljander and Roos, 2002; Reinartz and Kumar, 2002). Customer satisfaction and loyalty are highly correlated (Athanassopoulos et al., 2001; Hallowell, 1996; Silvestro and Cross, 2000), but form two distinct constructs (Bennett and Rundle-Thiele, 2004; Oliver, 1999). Customer satisfaction with a bank relationship is a good 7 basis for loyalty (Bloemer et al., 1998; Pont and McQuilken, 2005), although it does not guarantee it, because even satisfied customers switch banks (Nordman, 2004). One important reason for switching is pricing (Colgate and Hedge, 2001; Ennew and Binks, 1999). Hence, banks have launched customer loyalty programmes that provide economic incentives. Although the effectiveness of loyalty programmes has been questioned (e.g. Dowling and Uncles, 1997; Sharp and Sharp, 1997; Stauss et al., 2005), research has shown that they have a significant, positive impact on customer retention, service usage, and/or share of customer purchases (e.g. Bolton et al., 2000; Verhoef, 2003). The link between loyalty and profitability Numerous studies have shown positive links between loyalty and firm profitability (Anderson et al., 1994; Hallowell, 1996; Reichheld, 1996; Silvestro and Cross, 2000). Nonetheless, not all loyal customers are profitable (Storbacka, 1994; 1997). According to Reinartz and Kumar (2002), the overall link between loyalty and profitability in many industries is questionable for two reasons: 1) a relatively large percentage of long-term customers are only marginally profitable, and 2) a relatively large percentage of short-term customers are highly profitable. It is noteworthy, however, that Reinartz and Kumars (2002) findings from four industries (high technology, postal service, retail food and direct brokerage) still indicate that a larger proportion of the long-term customers than of the short-term customers exhibit high profitability, and a larger proportion of the high-profitability customers than of the low-profitability customers are long-term customers. Thus, the theory of an overall positive connection between customer loyalty and profitability cannot be rejected. As noted by Anderson and Mittal (2000), customer relationship profitability arises through the acquisition and retention of high quality customers with low maintenance costs and high revenue. In the context of retail banking, Storbacka (1994) describes relationship costs as comprising direct variable costs, such as transaction related costs and costs related to specific 8 services, in addition to overhead costs that may or may not be attributable to particular relationships. Relationship revenue, meanwhile, is split into volume-based revenue that is derived from interest margins, and fee-based revenue. Customers patronage concentration (Storbacka, 1994), or share-of-wallet (Keiningham et al., 2003; Perkins-Munn et al., 2005), and pricing policies are important aspects of relationship revenue in banking. Since a large part of banks revenues are received from interest margins, customers volume of business has a major impact on profitability. If relationship costs are minimized and relationship revenue is

maximized over time, long-term customers should generate greater profitability than short-term customers.

3.4 Objectives of the Report

There are two types of objective behind conducting this report. These are as follows: 3.4.1 Broad objective: The broad objective of this report is to find out the behavior of passenger car owner in purchasing tyre.

3.4.2 Specific objectives: The specific objectives for this report are as follows:
To find out the brand that consumers prefer for their tyre. To find out the reason for purchasing the brand. To find out from where they would like to purchase the tyre. To find out the reasons behind purchasing from the place. To find out the advertisement media that helps the customers most.

3.5 Methodology
To complete this report successfully I have to follow some methods. These are as follows: 3.5.1 Research Type: This research is descriptive in nature 3.5.2 Sampling Plan: The sampling for this research is as follows:

Sampling Frame: The research was conducted in different parts of Dhaka city.

Sampling Element: The private car owners living in Dhaka city were selected as sampling element.

Sampling Procedure: For the research I have used non probability Convenience sampling technique.

Sample Size: My sample size for this research is 100.

3.6 Sources of Data

Data were collected from two sources. They are as follows:
Primary data: Primary data were collected directly from the customers

of tyre users. I have asked some questioned to them and use their responses as primary data.
Secondary data: The secondary data were, companys Quarterly

Business Review Report, Tyre Marketing Report, information from internet etc.

3.7 Data analysis

For data analysis I have done frequency analysis, cross tabs analysis with the data I have collected from the respondents.

3.8 Findings
After completing the research I have found the following things about Rahimafrooz tyre and things related to it. In this section I have described the branded tyre available at Rahimafrooz, its marketing organaogram, segmentation of tyre, country of origin, promotion, claim settlement, quarterly business review of 2009 and finally the analysis of the questionnaire.

3.8.1 Frequency Analysis 1. Mode of transportation

Table 1: Mode of transportation
Frequency Valid Private car 100 Percent 100.0 Valid Percent 100.0 Cumulative Percent 100.0

W hich media do you use for your transportation?

Priv ate car 100.0%

Analysis:

From the frequency table, statistics table, and from the graph we can see that all the 100 respondents use private car for their transportation. As this topic is based on tyre purchasing behavior of passenger car customers, normally all the respondent are chosen who use the private cars.

2. Brand Preference for tyre Table 2: Brand Preference for tyre

Frequency Valid Dunlop Bridgestone Kenda Yokohama MRF Others Total 43 22 10 16 8 1 100 Percent 43.0 22.0 10.0 16.0 8.0 1.0 100.0 Valid Percent 43.0 22.0 10.0 16.0 8.0 1.0 100.0 Cumulative Percent 43.0 65.0 75.0 91.0 99.0 100.0

Which tyre brand you prefer for your car?

Others 1.0% MRF 8.0% Yokohama 16.0% Dunlop 43.0% Kenda 10.0% Bridgestone 22.0%

Analysis: From the above table and graph we can see most of the respondents prefer Dunlop tyre for their car. Among the 100 respondents 43 respondents used Dunlop, 22 respondents use Bridgestone and others use Yokohama, Kenda, etc.

3. Reason for purchasing the brand Table 3: Reason for purchasing the brand
Frequency Valid Quality product Credit facility Brand image Country of origin Pattern of product Company image Total System 54 5 18 6 5 11 99 1 Percent 54.0 5.0 18.0 6.0 5.0 11.0 99.0 1.0 Valid Percent 54.5 5.1 18.2 6.1 5.1 11.1 100.0 Cumulative Percent 54.5 59.6 77.8 83.8 88.9 100.0

Missing

Total

100

100.0

What is the reason for purchasong the brand?

Missing 1.0% Company image 11.0% Pattern of product 5.0% Country of origin 6.0% Quality product Brand image 18.0% Credit facility 5.0% 54.0%

Analysis: Here, we can see the respondents motive or reason behind purchasing the brand is quality product. According to 54 respondents Dunlop is a quality product thats why they prefer it and 18 respondents purchase it because of brand image. Other respondents purchase the brand because of company image, country of origin etc. 4. Decision Maker in purchasing tyre Table 4: Decision Maker in purchasing tyre
Frequency Valid Head of the family children Drivers My self Total System 39 1 14 45 99 1 100 Percent 39.0 1.0 14.0 45.0 99.0 1.0 100.0 Valid Percent 39.4 1.0 14.1 45.5 100.0 Cumulative Percent 39.4 40.4 54.5 100.0

Missing Total

Who takes the decision for purchasing tyre?

M issing 1.0% M self y 45.0%

Head of the fam ily 39.0%

childrens 1.0% Drivers 14.0%

Analysis: From the frequency table and statistics table we can see that most of the respondents decisions for purchasing tyre are made by the owner of the car. Then, in second place we can see that head of the family took the decision for purchasing the branded tyre and the percentage of decision making by drivers are only 14%.

5. Influencer in buying the tyre

Table 5: Influencer in buying the tyre
Frequency Valid Relatives Friends Colleagues Others Total 41 34 20 5 100 Percent 41.0 34.0 20.0 5.0 100.0 Valid Percent 41.0 34.0 20.0 5.0 100.0 Cumulative Percent 41.0 75.0 95.0 100.0

By whom you are influenced to buy the product?

Others 5.0% Collegues 20.0% Relatives 41.0%

Friends 34.0%

Analysis: Here we can see that in case of tyre purchasing respondents are mostly influenced by their relatives and friends. Among 100 respondents 41% respondents are influenced by their relatives and 34% are influenced by their friends.

6. Liking of the place to buy Table 6: Liking for the place to buy
Frequency Valid Dealer Retailer Company outlet Corporate agreement Missing Total Total System 45 13 39 2 99 1 100 Percent 45.0 13.0 39.0 2.0 99.0 1.0 100.0 Valid Percent 45.5 13.1 39.4 2.0 100.0 Cumulative Percent 45.5 58.6 98.0 100.0

From where do you like to purchase the tyre?

Missing 1.0% Corporate agreement 2.0%

Company outlet 39.0%

Dealer 45.0%

Retailer 13.0%

Analysis: From the frequency and statistics table we can see that 45% respondents prefer to but the tyre from the dealer and 39% prefer to buy from company outlet. Very few percentages prefer retailers in case of tyre purchasing.

7. Reason behind purchasing tyre from that place Table 7: Reason behind purchasing tyre from that place
Frequency Valid Credit facility/Discount Fixed price Product availability Negotiable price Others Total System 40 28 22 8 1 99 1 Percent 40.0 28.0 22.0 8.0 1.0 99.0 1.0 Valid Percent 40.4 28.3 22.2 8.1 1.0 100.0 Cumulative Percent 40.4 68.7 90.9 99.0 100.0

Missing

Total

100

100.0

what is the reason behind purchasing from that place?

Missing 1.0% Others 1.0% Negotiable price 8.0% Product availability 22.0% Credit f acility/Disc 40.0%

Fixed price 28.0%

Analysis: Here we can see that the respondents prefer dealers because of credit facility and the respondents who prefer company outlet go there because of fixed price of tyre and product availability.

8. First brand come in to your mind Frequency table 8: TOM

Frequency Percent Valid Dunlop Bridgeston e Kenda MRF Yokohama Total 42 24 7 16 11 100 42.0 24.0 7.0 16.0 11.0 100.0 Valid Cumulative Percent Percent 42.0 42.0 24.0 7.0 16.0 11.0 100.0 66.0 73.0 89.0 100.0

Which brand comes first into your mind when you think about tyre?
Yokohama 11.0%

MRF 16.0% Dunlop 42.0%

Kenda 7.0%

Bridgestone 24.0%

Analysis: From the graph, frequency and statistics table we can see that in case of tyre the mind share of respondents are Dunlop. 42%respondents when think of tyre Dunlop comes in their mind first. And in case of Bridgestone the percentage is 24%.

9. Advertisement media to know about the brand Frequency table: 9 Advertisement media to know about the brand
Frequency Percent Valid Television ad Print media Billboard ad Others Total System 22 59 10 8 99 1 100 22.0 59.0 10.0 8.0 99.0 1.0 100.0 Valid Cumulative Percent Percent 22.2 59.6 10.1 8.1 100.0 22.2 81.8 91.9 100.0

Missing Total

Which advertisement media helps you to know about the brand?

Missing 1.0% Others 8.0% Billboard ad 10.0% Television ad 22.0%

Print media 59.0%

Analysis: Here we can see that print media helps most to give information about tyre to customers. 59% respondents believe that print media helps them to most to get information about tyre.

10. Evaluation of Dunlop as tyre Frequency table: 10 Evaluation of Dunlop as tyre

Frequency Percent Valid Excellent Very good Good Average 5.00 Total 42 30 21 6 1 100 42.0 30.0 21.0 6.0 1.0 100.0 Valid Cumulative Percent Percent 42.0 42.0 30.0 72.0 21.0 93.0 6.0 99.0 1.0 100.0 100.0

How would you rate Dunlop as tyre?

5.00 1.0% Average 6.0% Good 21.0% Excellent 42.0%

Very good 30.0%

Analysis: From the tables above we can see that 42% respondents rate Dunlop as excellent and 30% rate Dunlop as very well. So we can say that Dunlop is an excellent tyre.

3.8.2 Cross tabulation Analysis

Figure 1: Customers Preferences for Brand & Reasons for buying

30

20

What is the reason f

Quality product Credit f ac ility

10

Brand image Country of origin

Count

Pattern of product 0 Dunlop Kenda MRF Others Bridgestone Y okohama Company image

Which tyre brand you prefer for your car?

30

20

What is the reason f

Quality product Credit facility

10

Brand image Country of origin

Count

Pattern of product 0 Dunlop Kenda Yokohama MRF Others Bridgestone Company image

Which tyre brand you prefer for your car?

Analysis:
The chart shows the cross tabulation between brand and the reason for purchasing the particular brand. We can see that customers first reason behind purchasing Dunlop is Quality, second comes its Brand image, and third comes Dunlops Company image, and fourth comes the pattern of the product. In case of Bridgestone brand the first reason for purchasing it is it Quality, second reason is the brand image, third reason is pattern of the product and fourth reason is country of origin. Customers reason behind purchasing the Kenda brand is Quality product, Credit facility, Brand image and Company image. The customers who purchase Yokohama believe that it is a quality product. The second thing that affects their purchase decision is its brand image and the third reason is credit facility and country of origin. In case of MRF the reasons is quality and country of origin.

Figure 2: Reasons of purchasing the brand and place of purchase

30

20

From where do you li

10 Dealer Retailer

Count

Company outlet 0
Q y li t ua tf di re C d an Br ry nt ou C rn t te Pa pa om C

Corporate agreement

e ag im

What is the reason for purchasing the brand?

y i lit ac t uc od pr

e ag im ny t uc od pr of

in ig or of

Analysis:
Here we can see the cross tabulation between the place from where the customers would like to purchase their preferred brand and why. The graph shows us that the customers who preferred quality products they purchased from dealers, secondly they prefer company outlet and thirdly they prefer retailers. The customers who wants credit facility they go for dealer and company outlet, and secondly to retailer. Those who purchase for brand image they prefer dealer, secondly company outlet, and thirdly retailers. We can also see that those who prefer country of origin they only purchased from company outlet, and those who prefer pattern of the product they purchased from company outlet and corporate agreement. The customers who purchase the brand because of company image they prefer company outlet for purchase.

Figure 3: Preferred place for purchasing tyre and media that helps to purchase from that place.

30

20

Which advertisement
10 Television ad Print media

Count

Billboard ad 0 Dealer Retailer Company outlet Corporate agreement Others

From where do you like to purchase the tyre?

Analysis:

The graph sows us the cross tabs question between the media that give
information about and the place from where the customers like to purchase. We can see that the print media helps the customers most to purchase the product from dealers. Second comes the TV ad and third comes others (oral marketing) which give the customers information about the product, Billboard ad also helps customer to purchase from dealers. In case of retailers the media that helps most is print media, secondly TV ad and thirdly billboard. Print media helps most in case of company outlet, TV; billboard also helps to give information about the product. But in case of corporate agreement only print media gives information to the customers.

Students Preference Criteria who are in Bengali medium

N Career Development High quality of education abroad Prestige and ranking of university To generate ideas for future Be out of comfort zone/challenge myself 21 21 21 21 21

Mean 4.48 4.43

4.38

4.24 4.24

Students Preference Criteria who are in English medium

Descriptive Statistics N Career Development Make more marketable to future employers Help professionally in a more globalized world High quality of education abroad Opens horizons and opportunities 29 29 Mean 4.59 4.45

29

4.34

29 29

4.24 4.17

Students Preference Criteria on the basis of Gender ( Female)

Table 14: Students

Preference Criteria on the basis of Gender

N Mean 31 31 4.48 4.39

Career Development To have a more global view of the world Be out of comfort zone/challenge myself High quality of education abroad Prestige and ranking of university To generate ideas for future Make more marketable to future employers Help professionally in a more globalized world Recognition of qualification Skills helpful for future jobs/rsum/graduate school Better equipped to handle change Higher status associated with studying Opens horizons and opportunities Inability to get a place in a course you wanted to study at home. For a multi-cultural experience Highly competitive entry requirements in home country Unavailability of course at home Chance to live in a foreign country For migration purposes Chance to be independent

31

4.35

31

4.29

31

4.19

31 31

4.19 4.16

31

4.03

31 31

4.03 4.00

31

4.00

31

3.94

31

3.90

31

3.90

31

3.90

31

3.87

31

3.87

31

3.84

31 31

3.81 3.68

Students Preference Criteria on the basis of Gender (Male)

Descriptive Statistics N Career Development Make more marketable to future employers High quality of education abroad Help professionally in a more globalized world Recognition of qualification Opens horizons and opportunities Higher status associated with studying Skills helpful for future jobs/rsum/graduate school Prestige and ranking of university Better equipped to handle change Chance to be independent To generate ideas for future To have a more global view of the world For a multi-cultural experience Highly competitive entry requirements in home country Be out of comfort zone/challenge myself Unavailability of course at home Chance to live in a foreign country For migration purposes Inability to get a place in a course you wanted to study at home. Valid N (listwise) 19 19 19 3.16 2.63 19 3.32 19 3.47 19 3.53 19 3.58 19 3.79 19 19 19 4.05 4.00 3.84 19 4.11 19 4.16 19 4.21 19 4.26 19 19 4.32 4.32 19 4.37 19 4.37 19 19 Mean 4.63 4.58

Students Preference Criteria on the basis Parents

Occupation (Businessman)

Descriptive Statistics N Career Development Prestige and ranking of university Make more marketable to future employers High quality of education abroad Help professionally in a more globalized world Opens horizons and opportunities To have a more global view of the world Chance to be independent Recognition of qualification To generate ideas for future Skills helpful for future jobs/rsum/graduate school Better equipped to handle change Higher status associated with studying For a multi-cultural experience Be out of comfort zone/challenge myself For migration purposes Highly competitive entry requirements in home country Unavailability of course at home Chance to live in a foreign country Inability to get a place in a course you wanted to study at home. Valid N (listwise) 23 23 2.91 23 3.35 23 3.39 23 23 3.39 3.39 23 3.61 23 3.65 23 3.87 23 3.96 23 23 23 23 4.04 4.00 4.00 3.96 23 4.04 23 4.13 23 4.13 23 4.30 23 4.35 23 23 Mean 4.61 4.43

Students Preference Criteria on the basis Parents

Occupation (Businessman)

Descriptive Statistics N Career Development Be out of comfort zone/challenge myself To have a more global view of the world To generate ideas for future High quality of education abroad For a multi-cultural experience Recognition of qualification Skills helpful for future jobs/rsum/graduate school Make more marketable to future employers Better equipped to handle change Higher status associated with studying Unavailability of course at home Help professionally in a more globalized world Highly competitive entry requirements in home country Opens horizons and opportunities Prestige and ranking of university Inability to get a place in a course you wanted to study at home. For migration purposes Chance to live in a foreign country Chance to be independent Valid N (listwise) 23 23 3.61 23 23 3.83 3.78 23 3.96 23 4.04 23 4.04 23 4.09 23 4.09 23 4.09 23 4.13 23 4.13 23 4.17 23 23 4.26 4.22 23 4.26 23 23 4.39 4.35 23 4.52 23 23 Mean 4.52 4.52

Summary of Findings:

Descriptive Statistics N Career Development Make more marketable to future employers High quality of education abroad To have a more global view of the world Prestige and ranking of university Help professionally in a more globalized world Recognition of qualification To generate ideas for future Skills helpful for future jobs/rsum/graduate school Opens horizons and opportunities Higher status associated with studying Be out of comfort zone/challenge myself Better equipped to handle change For a multi-cultural experience Chance to be independent Highly competitive entry requirements in home country Unavailability of course at home Chance to live in a foreign country For migration purposes Inability to get a place in a course you wanted to study at home. 50 50 3.56 3.42 50 3.64 50 3.72 50 50 3.82 3.76 50 3.86 50 4.04 50 4.04 50 4.06 50 4.06 50 50 50 4.14 4.12 4.08 50 4.16 50 4.18 50 4.18 50 4.32 50 50 Mean 4.54 4.32

Recommendations
As Rahimafrooz is one of the reputed company in Bangladesh, there are very little to recommend about there product or services. Though Rahimafrooz provides quality product the prices are too high. Their only manufacturing tyre is RZ tyre; its price is relatively low. If Rahimafrooz come forward to manufacture its products then the price will be little bit low and all types of consumers may be able to purchase the product. Another thing is consumers mainly get information from print media, but now-a-days commercial TV Ad and radio ad has became very popular, so they can go for commercial TV ad and radio ad. So it will be easy for the consumers to get information from TV and radio. Last recommendation for Rahimafrooz will be extending the guarantee period of tyre. In present there are 1 year unwritten guarantee for tyre but most customers think that this guarantee period should be extend more.

Conclusion
After analysis the whole report I can conclude that as the aspiration statement of Rahimafrooz reads, We want to be the most admired and trusted organization, by excelling in everything we do, following ethical business practices, and adding value to stakeholders. And we want to achieve all of these while being firmly committed to our social responsibilities Rahimafrooz Distribution Ltd., with a proud history of more than 50 years, strongly believes in the principle of contributing back to the community where They operate. They strive to add value to the society, its economy, and environment through efforts. As a result the consumers behavior towards Rahimafrooz is very positive and their satisfaction level is very high. The consumers of passenger car tyre are preferred Rahimafrooz tyre most. The consumers believe that Rahimafrooz provides high quality product, but prices are high in case of Dunlop tyre. Consumers of passenger car tyre mainly get information from the print media.

So, at the end I can conclude that Rahimafrooz is one of the finest companies in Bangladesh. They provide high quality of product and consumers are satisfied with Rahimafrooz products they bought, especially in tyre segment. Consumers are satisfied by Rahimafrooz tyre category.

PART4
Internship Experience

4.0 Introduction
As Rahimafrooz is one of the finest companies of Bangladesh, I am fortunate to o complete my internee in such a big organization. Through my internship period I have learned so many things from the organization which I have not learned before. As Rahimafrooze has huge SBUs I was placed in Rahimafrooz Distribution Ltd. to complete my internship. A brief description is given below about my internship experience: 4.1 Duties and responsibilities within the organization As I was an intern my duties and responsibilities was not so serious type. I had to go the office twice or thrice a week. Sometimes I had watched the working process of lubricant sector, sometimes in tyre sector, and some times in battery sector. Mainly my responsibility was to learn work. 4.2 Reporting structure The topic and guideline for preparing my report was given by the Product Manager of tyre Mr. Mahmudul Hassan. He was my super visor for the entire internship period. 4.3 Department or division As I am a student of BBA and my major was in marketing I was placed in marketing department of Rahimafrooz Distribution Ltd. 4.4 Contribution to the organization As an intern I have little to contribute for the organization. My topic was research based so I had to conduct a research which they will use in their tyre department in future.

4.5 The job was related to my major area of study I have chosen the major area for my BBA in marketing. In marketing major there was a course named Consumer Behavior and the topic of my internship is based on that subject that is consumer behavior in purchasing tyre of passenger car owner. So the topic is matched with my major subject.

References
1. Consumer Behavior

Shiffman, G Leon Kanuk, Lazar Leslie 2. www.rahimafrooz.com 3. Quarterly Business Review 2009 Rahimafrooz Distribution Ltd.s

Appendices
Appendix 1. Table of Mean, Median and Standard Deviation
1. Which

media do you use for your transportation?

1.00 1.00 1.00 0.00

Mean Median Mode Standard Deviation

2. Which tyre brand you prefer for your car?

Mean Median Mode Standard Deviation 2.62.00 2.00 1.00 1.87

3. What is the reason for purchasing the brand?

Mean Median Mode Standard Deviation 2.35 1.00 1.00 1.76

4. Who takes the decision to purchasing the tyre?

Mean Median Mode Standard Deviation 3.25 4.00 5.00 1.87

5. By whom you are influenced to buy the product?

Mean Median Mode Standard Deviation 1.89 2.00 1.00 0.89

6. From where do you like to purchase the tyre?

Mean Median 1.97 2.00

Mode Standard Deviation

1.00 0.96

7. What is the reason behind purchasing from that place?

Mean Median Mode Standard Deviation Mean Median Mode Standard Deviation 2.01 2.00 1.00 1.02 2.64 2.00 1.00 1.87

8. Which brand comes first into your mind when you think about tyre?

9. Which advertisement media helps you to know about the brand?

Mean Median Mode Standard Deviation 2.81 3.00 3.00 1.13

10. How would you rate Dunlop as tyre?

Mean Median Mode Standard Deviation 1.94 2.00 1.00 0.98

Appendix 2. Questionnaire
Dear Respondent,
I am a student of BBA (Major in Marketing) of Eastern University and now doing my internship at Rahimafrooz Distribution Ltd. As a part of my internship I have to prepare a report on the following topic Tyre Purchasing Behavior of customers; A study on passenger car So I am assigned by the company to do a research on purchasing behavior of tyre in corporate sector. For the educational purpose I need some information from you which will help me in preparing the internship report. I will be grateful if you give me some of your valuable time.

Thank you
1. Name of the respondent: 2. Profession: 3.Contact Details: Email: Address: Phone:

4. Which media do you use for your transportation? I) Private Car II) Auto rickshaw III) Bus IV) Others. (Please specify) 5. Which brand you branded tyre you prefer for your car?

I) Dunlop II) Bridgestone III) Indus IV) Kenda V) Yokohama VI) MRF VII) Others.. (Please specify) 6. What is (are) the reason (s) for purchasing the brand? I) Quality product II) Credit facility III) Brand image IV) Country of origin V) Pattern of product VI) Company image VII) Others. (Please specify 7. Who takes the decision for purchasing tyre? I) Head of the family II) Childrens III) Wife IV) Drivers V) Others (Please specify) 8. By whom you are influenced to buy the product? (If any) I) Relatives II) Friends III) Colleagues IV) Others. (Please specify) 9. From where do you like to purchase the tyre? I) Dealer II) Retailer III) Company outlet IV) Corporate agreement V) Others. (Please specify) 10. What is (are) the reason (s) behind purchasing from that place? I) Credit facility / discounts

II) Fixed price III) Product availability IV) Negotiable price V) Others. (Please specify) 11. Which brand comes first into your mind when you think about tyre? I) Dunlop II) Bridgestone III) Indus IV) Kenda V) MRF VI) Yokohama VII) Others (Please specify) 12. Which advertisement media helps you to know about the brand? I) Television ad II) Radio ad III) Print media IV) Billboard ad V) Others.. (Please specify)