CUSTOMER BEHAVIOUR TOWARDS PRODUCT MILAGE IN BANGALORE

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EXECUTIVE SUMMARY
Marketing has been defined by the American Marketing Association as follows: Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying products to target market to achieve organizations objectives. Marketing can be for goods and services. Marketing of goods is the process of transporting goods from the place of seller to buyer. Marketing of services on the other hand is the act or performance that one party can offer to another and it is essentially intangible. Services include all economic activities whose output are not a physical product, is generally consumer at the time it is produced, and provide added value in forms that are intangible concerns of its purchaser. Thus, service Marketing does not result to the ownership of anything. Its production may or may not be tied to physical products. The modern Marketing concept is mainly customer oriented and gives more emphasis to customer behaviour & satisfaction. Service Marketing concept also gives more emphasis on the customer. Satisfying the needs and wants of customers is the main aim of any service industry. The behavior of the customer alone can earn goodwill for the industry. Any service industry, which fails to satisfy the consumers needs, cannot exist in the modern business field. Thus customer behavior is the evolution of a product or service in terms of whether that product or service has met their needs and expectations. Failure to meet needs and expectations is assumed to result in dissatisfaction with the product or service.
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GENERAL INTRODUCTION
In the modern business world, each and every businessman has his own financial problems even if his business is running under profit. A person might be having more than two cars, a big house and a lot of properties, but he may be in lack of liquid cash for his business or some other purpose at least once in a while. Therefore, the businessmen are forced to keep more cash as reserve than the luxurious assets. Standard Chartered bank fully understands the importance of time, convenience and efficiency to the success of a business. They make the complex financial world easier for the businessmen and help them maximize every opportunity. With over 140 years of experience in trade finance and an extensive international branch network, Standard Chartered is committed to help the people succeed in every competitive environment. To keep pace with the peoples changing needs, this bank constantly reviews their comprehensive cash trade and treasury products and services, ensuring that a full range of flexible and innovative services are always available for the customers wherever they trade. They can give innovative solutions to the businessmens Standard banking needs. Chartered introduces their product named MILEAGE, a cash overdraft facility for car owners. MILEAGE has the combined benefits of a loan and a credit card. A person who owns a car can avail the facility without any pre-payment charges or the hassle of excess documentation. Thus the product MILEAGE offers a businessman to avail this facility anytime to meet his financial needs at the same time enjoying his luxurious assets. Mileage is now available at Ahmedabad, Bangalore, Kolkata, Chennai, Kanpur, Mumbai, New Delhi and Pune. In Bangalore the product is marketed through the banks direct selling team named CHARTERED FINANCIAL SERVICES.

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This company, Chartered Financial Services has its own three branches in Bangalore which is managed by three different business managers, team leaders, executives and telecallers. They have a vital role in the marketing and sales of the product in Bangalore. The basic objective of the Standard Chartered bank is to provide innovative solutions to different banking needs of the customers, thus making the complex financial world of a businessman easier.

1. STATEMENT OF THE PROBLEM

The title of the project is Customer behavior towards the product Mileage in Bangalore. Even though, Mileage is the product of a multi national bank, it has competitors from the national level as well as international level. Different nationalized banks, multi national banks and well established private financial institutions have come up with their own products, which has a higher chance to become the competitor to Mileage. However, the unique features of the product mileage and the Standard Chartereds experience in the field remains the product stable throughout. The study is specially designed with the intention of knowing the preference of mileage customers when they are applying for a particular for a loan from Standard Chartered.

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2. NEED FOR THE STUDY

The need for the study arises from the fact that the banking industry is over-crowded with competition who can be accommodated in the market. There was a time when people did not approach either nationalized or multi-nationalized banks for loans. They were satisfied with the local financial institutions who take a higher interest on those days. Now customers prefer taking loans from well established banks, which offer low interest, fast approval and services. Now it is no longer a seller market, it is a buyer market. The customers go only for the perfect one. So, there is also a need to study what one buys and what precisely are ones requirement. This study helps to analyse the market potential of mileage and the increase of market share of Standard Chartered Bank.

3. SCOPE OF THE STUDY

The study is concerned with the customer preference towards the product Mileage in Bangalore- what the customers expect from the Standard Chartereds Mileage. The research is carried out with the help of a questionnaire which would be presented to various mileage customers and individuals in the city of Bangalore. It will definitely point out the different problems being faced by the customers and what customers feels about the various aspects of mileage and other similar loans for different banks. Besides, this study undertaken will help to find out awareness of mileage and Standard Chartered. An attempt is also made to find out from the branch managers and customers about the sales executives rendering sales and service which may help the company to take necessary corrective action and improve upon its sales. An effort is also made to analyze how the consumers rank MILEAGE among the stream of such cash overdraft facilities offered by different banks in the market. This study can be taken as basis in case of similar studies of other venture in the future. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 5

4. OBJECTIVE OF THE STUDY

The following are the objectives of the study:
To study whether the company has fulfilled the requirements of its customers. To investigate the impact of different facilities offered by the company in taking the loans. To understand whether the sales force render satisfactory service to the customers. To analyze what the customers are looking for and to determine the consumers behavior towards the product. To come out with conclusions and suggestions based on the analysis and interpretations of data.

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1. DESCRIPTION OF THE RESEARCH DESIGN

Market research is the process of collecting, analysing and interpreting marketing information. Running a business means taking decisions all the time. Some of these decisions have short term consequences, however affects the long term prospects of business. Whatever the nature of the decision a common, thread is the nature of the information. Information is needed to increase your charges of making the best decisions and market research guides the decision maker. Fundamental to the success of any formal marketing research project is sound research design. A good research design has the characteristics, viz., problem definition, specific methods of data collection and analysis, time required for research project and the estimate of expenses of to be incurred. A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. It is a blue print that if followed in completing a study. The study must be relevant to the problem. The study must employ economical procedures.

The three important points about research design are:

The design of investigation should stem for the problem. Whether the design are productive in a given problem setting depends on how imaginative they are applied. An understanding of the basic design is needed so that they can be modified to suit specific purpose.

The three basic types of research design viz., Exploratory Descriptive Casual or experimental
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Casual or experimental can be booked at stages in continuous process in the following show their inter-relationship. Exploratory or formulate studies are often seen as they initial step in the continuous research process. It is shown here that these three research are not mutually exclusive and a combination of all the three could be used in the successful completion of a marketing research project. We start with the exploratory and go to casual through the descriptive research. Alternatively, we can select any of these research designs and take the help of the other two designs if the situation or problem requires. The questionnaire method used in the customers survey helped us in arriving at the following facts: The influence of promotion on the consumer behaviour. The likes and dislikes of the customers. The decision-making process of the customers. The consumer behaviour towards the Mileage in Bangalore.

Results from the customer survey:

The questionnaire method and observation method are used for studying the consumer behavior towards Mileage in Bangalore. The questionnaire method helps us to identify the tastes of the customer and what they expect from Mileage

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2. SAMPLING PROCEDURE
Except in special and rare cases, field work is carried out using the sampling of the population rather than the whole universe. Without sampling procedure and confidence that the results obtained in this way are in some way representative of the whole, market research would not be possible. When deciding a sample, you need first to answer these three questions:

Who should be interviewed in the field work? How many of them should there be? How should they be chosen? Generally large the sample, the greater the accuracy, provided it is selected in an appropriate way. Diminishing returns apply, however, and the increased accuracy from additional interviewing may be very small and not worth paying for. A total of 100 respondents including Mileage customers and non-mileage customers were interviewed. According to the database collected from the executives, the existing customers of the Mileage were interviewed at their residence and at other places.

Selected petrol bunks in the city where the promotion of the product is done, were visited to interview the car owners which included both Mileage holders and nonholders.

This method was found to be better as doubts regarding a particular question could be cleared then and the correct answer could be received, whereas when the customer fill out questionnaires by themselves, he may tend to give wrong answers which can be used in the analysis.

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2.1. SAMPLING SIZE

No. of customers interviewed Customers of Mileage Non Customers Total =100 = 55 = 45 =100

2.2. SOURCES OF DATA

The foundation of market research is interviewing its means by which primary data is obtained for most of the surveys. The interviewers aim is to draw out of respondents accurate fact and opinions guided by a questionnaire.

Interviewing Planning:Having decided on what size of sample is required and what method of data collection is to be used, the number of interviews that can be achieved daily is decided. The quality of all market research is dependent on asking the right questions and extracting proper reasons. The questionnaire designed for the customers contains twenty questions and was designed to extract the following information.
1. 2.

Preference of the customers towards cash overdraft schemes of different banks Reasons behind the customers preference for a particular banks cash overdraft scheme (car loan) LORVEN COLLEGE OF SCIENCE & MANAGEMENT 10

3. 4. 5.

To assess the awareness of the product mileage among the people in Bangalore Whether the customer is sensitive of the interest outflow Customer satisfaction regarding the after sales service mileage Secondary data There is no point in re-inventing the wheel, secondary data is the one which can already be collected by someone else and could prove useful to the research if it can be unearthed secondary data can make a major contribution in the following reasons. In selecting a sample, published sources list of people or companies to interview and can be found in the phone directory list of fast customers and track directors. Obtaining detailed of products e.g sales literature in goods. Providing an economic back cloth to study market research reports may need some background as prospective against which the primary information can be set. The broader of the scope of the study, the more likely there is to be something available in published from. In assessment of the market size and trends. Providing information on companies in terms of their turnover of financial performance, management structure, products they sell. There are many sources of information on secondary data viz., the government, customer and experience or exercise. Directors, the press, the trade journals, trade association and own company, market research reports etc. The secondary data for this study was obtained from the company with which this project is associative i.e; mileage booklet, business and economic magazines.

Comparison of primary data collection and secondary data collection:

In broader sense, we can say that two types of data are available to a researcher. These are:LORVEN COLLEGE OF SCIENCE & MANAGEMENT 11

1. 2.

Primary data Secondary data

1.

Primary data
Primary data are generated when a particular problem at hand is investigated by the

researcher employing mail, questionnaire, telephone surveys, personal interviews, observation and experiments.

Merits of using primary data

Amount of information procured on each aspect is larger. Due to a personal interaction between the investigator and the respondents, the data obtained are more reliable. The result can be projected to the relevant universe with a greater degree of accuracy.

Limitation of using primary data

The cost involved is relatively higher. The respondents may refuse the co-operate the investigator. Bias may occur when the sample chosen to be surveyed is not really representative of the population.

2.

Secondary data

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Secondary data on the other hand include the data which are collected from for some earlier research work and are applicable or usable in the study, the researcher has presently undertaken.

Merits of secondary data

Use of secondary data in a research is more economical than the primary data The secondary data is biased because the purpose of their collection is different from the objective, the researcher who collects the primary data.

Limitation of secondary data

Finding data to suit the specific project is cumbersome. It is tiresome to find data of known accuracy.

Selecting a Survey Technique:

The seven major factors involved in selecting survey technique:

Cost of collecting the data Speed of getting response Accuracy of the data Amount of data gathered LORVEN COLLEGE OF SCIENCE & MANAGEMENT 13

Response rate Flexibility of the technique Degree to which sample represents the population

5. METHODOLOGICAL ASSUMPTION
From the study undertaken, the research has realized the following assumption: The marketing research was conducted in the city of Bangalore and the study is limited only in the Bangalore city. It is assumed that information by the respondents and the leader is authentic.

Respondents selected belong to different section in the society and it is assumed that all the section have been given proper representation.

6. LIMITATIONS OF THE STUDY

Limitations are as follows: Due to time constraint only 100 respondents were interviewed which probably is not enough. This research is strictly confined to the Bangalore city only, thus, result drawn is confined to the city limits.

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7. AN OVERVIEW OF REPORT
Chapter 1:
This chapter deals with the general introduction about the report, the statement of the problem, the need for the study, objectives and the scope of the study. It includes certain management definition concerned with the study.

Chapter 2:
This chapter deals with the design of the study concerning research methodology, sampling, and tools of data collection and limitation of study.

Chapter 3:
This chapter deals with the profile of organization such as its origin, its growth, present status, functional departments and the organization structure.\

Chapter 4:
This chapter deals with the analysis and interpretation of data.

Chapter 5:
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This chapter deals with the summaries of finding of the study and recommendation based on the findings.

1. THE ORETICAL BACKGROUND OF THE STUDY

Todays sales executives are professionals. They plan to build and maintain effective organizations and design and utilize efficient control procedures. The professional approach requires through analysis market efficient qualitative and quantitative personnel selling objectives, appropriate sales policies and personal selling strategy. It calls for skillful applications or organization principles to the conduct of sales operations.

Consumer Behaviour
The aim of marketing is to meet and satisfy target consumers needs and wants. The fields of consumer behavior studies how individuals, groups, services, ideas, or experiences to satisfy their needs and desires. Understanding consumers behavior and knowing customer are never simple. Consumers may say thing but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last time. The study of consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, and effort) on consumption related items. It often they use it. Take the simple product toothpaste. Consumer researchers want to know what types of toothpaste consumers buy (gel, regular, stripped, in a tube, with a pump) what brand (national brand, private brand, generic brand) why they buy it (to LORVEN COLLEGE OF SCIENCE & MANAGEMENT 16

prevent cavities, to remove stains, to brighten or whiten teeth, to use as a mouth wash, to attract romance) where they buy it (super market, drugstore, convenience store) how often they use it (when they wake up, after each meal, when they go to bed, or any combination there of) and how often they buy it (daily, weekly, monthly).

The major factors influencing buyer behavior are:

A customer buying behavior is influenced by cultural, social, personal and psychological factors.

Cultural Factors
It includes:

Culture: - Culture is the most fundamental determinant of a persons wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behavior through his or her family and other key instruments.

Subculture: - Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments, and markets often design products and marketing program tailored to their needs.

Social class: - Social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior.

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Social Factors
In addition to cultural factors, a consumers behavior is influenced by such social factors such as

Reference Groups: - A persons reference groups consist of all the groups that have a direct (face to face) or indirect influence on the persons attitudes or behavior. Groups having a direct influence on the persons attitudes or behavior. Groups having direct influence on a person are membership groups.

Family: - The family is the most important consumer buying organization in society, and it has been researched extensively. Marketers are interested in the roles and relative influence of the husband, wife, and children in the purchase of a large variety of product and services.

Roles & Status: - A person participates in many group family, clubs, and organizations. The persons position in each group can be defined in terms of roles and status. A roles consists of the activities that a person in expected to perform. Each role carries a status. A supreme court justice has more than a sales manager, and a sales manager has more status than an office clerk.

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Personal Factors
A buyers decisions are also influenced by personal characteristics. These include: -

Age & stage in the life Cycle:- People buy different goods services over a lifetime. They eat baby food in the early years, most foods in the growing and mature years and special diets in the late years. Taste in clothes, furniture, and recreation is also age related.

Occupation & Economic Circumstances: -Occupation also influences persons consumption a pattern. A blue collar worker will buy work clothes, work shoes, and lunch boxes. A company president will buy expensive suits, air travel, country club membership, and a large sail boat. Marketers try to identify the occupational groups that have above average interest in their products and services.

Life style: - People from the same subculture, social class and occupation any lead quite different lifestyle. A lifestyle is the persons pattern of living in the world as expressed in activities, interests, and opinions. Lifestyle portrays the whole person interacting with his or her environment.

Personality & self-concept: -Each person has a distinct personality that influences buying behavior. By personality, we mean distinguishing psychological LORVEN COLLEGE OF SCIENCE & MANAGEMENT 19

characteristics that lead to relatively consist and enduring responses to environment. Personality is usually described in terms to such traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability.

Psychological Factors
A person buying choices are influenced by four major psychological factors. These are:

Motivation:- A person has many needs at any given time. Some needs are bionic; they arise from psychological states of tension such as the need for recognition, esteem, or belonging. Psychologists have developed theories of human motivation. Within these Maslows theory tells to explain why people are driven by particular needs at particular time.

Self Actualization needs Esteem needs Social needs Safety needs Psychological needs

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Fig. Maslows hierarchy of needs

A Perception: - A motivation person is to ready act. How the motivated person actually acts is influenced by his or her perception of the situation. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Perception depends not only the physical stimuli but also on the surrounding field and on conditions within the individual. The key work in the definition of perception is individual.

Learning: -When people act, they learn. Learning involves changing in an individuals behaviour arising from experiment.

Beliefs and Attitudes: - Through doing and learning, people acquire beliefs and attitudes. These in term influence buying behaviour. A belief is a descriptive through that a person holds about something. An attitude is a persons enduring favorable evaluations, emotional feeling, and action tendencies toward some object or idea. People have attitudes toward almost everything religion, politics, clothes, music, food. Attitude put them into a frame of mind liking or disliking of object, moving toward or away from it. Attitude lead people to behave in a fairly consistent way toward similar object.

The Buying Decision Process:

Smart companies research the buying decision process involved in their product category. They ask consumers when they first became acquired with the product category and brands, what their brand beliefs are, how involved they are with the LORVEN COLLEGE OF SCIENCE & MANAGEMENT 21

product, how they make their brand choice, and how satisfied they are after purchase. All these things are related with some steps.

Buying Decision Process

1. 2. 3. 4. 5. 6. 7. Problem Reorganization Information Search Evaluation of Alternatives Purchase Decision Post purchase behavior In this project the theory of consumer behavior has been taken into account strong as the consumers always buy with attitudes, perception, and beliefs towards product. This behavior has been analyzed in this study. Here all these by consumers and dealers have been studied and a analyze for understanding that better. This will help in having a good direction to marketing the product.

BACKGROUND OF THE STUDY

In the early years, people had to believe upon local money lenders to meet their financial needs. There were no banks or recognized financial institutions to offer loans LORVEN COLLEGE OF SCIENCE & MANAGEMENT 22

and other related financial solutions to the people. Local money lenders were the only people who helped people with financial assistance that too with high interest. Later when the competition in the industry increased, some banks were emerged and these were preferred by the people because of trustworthiness and low interest. In India, there are private banks to serve the people in all their financial problems. Banks collect money from those who have it as deposits and give money to those who need it, as loans with a low interest. In early stages, banks gave loans for building purposes, educational purposes, educational purposes etc. Later, as competition increased, so many banks have introduced loans for purchasing cars and other vehicles, home appliances etc.

Standard Chartered bank is the worlds leading emerging markets bank headquarter in London. Standard Chartered has maintained a long local presence since 1858, with particulars emphasis on relationship banking. Significant networks have been established with vehicles and financial related organizations to enable them to offer their customers a comprehensive range of flexible financial services with special focus on transactional banking products. Standard Chartered fully understands the importance of time, convenience and efficiency to the success of your business. They make easy the complex financial world for the people and help the people maximize every opportunity. This bank has introduced a cash overdraft facility named Mileage for car owners. Mileage is the first of its kind in the bank loan industry. It can be said either a car loan or a loan taken on the existing car. Mileage offers the combined benefits of a loan and a credit card. The bank markets its products directly and indirectly in order to make it easy and simple thus increasing the sale. Mileage is marketed in Bangalore with direct selling LORVEN COLLEGE OF SCIENCE & MANAGEMENT 23

team named CHARTERED FINANCIAL SERVICES which has three branches in Bangalore and 35-40 sales executives working for the marketing of Mileage. Mileage is the first of its kind and surely, there is no competitors right now in the market. The banks offer such a cash overdraft facility which helps the customers to enjoy the benefits of a car and the cash in hand. Standard Chartered is coming up with new banking products which can give innovative solutions to the customers banking needs.

1. ORIGIN OF THE ORGANISATION

Standard Chartered is the worlds leading emerging markets bank headquartered in London. Its businesses however, have always been overwhelmingly international. Standard Chartered is named after two banks which merged in 1969. They were originally known as the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. Of the two banks, the Chartered Bank is the older having been founded in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the world's pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in South Africa and had become a successful merchant. Both banks were keen to capitalize on the huge expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from financing that trade.

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The Chartered Bank opened its first branches in 1858 in Calcutta and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered's unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861 the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly developing rubber and tin industries in Malaysia. In 1862 the Chartered Bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th Century. Over the following decades both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, Malaysia and even during the siege of Marketing in South Africa. Today Standard Chartered is still one of the three banks which prints Hong Kong's bank notes. The Chartered Bank opened its first overseas branch in India, in Kolkata, on 12 th April1858. Eight years later, the Kolkata agent described the banks credit locally as splendid and its business as flourishing, particularly the substantial turnover in rice bills with the leading Arab firms. When the Chartered bank first established itself in India, Kolkata was the most important commercial city and was the center of the jute and indigo trades. With the growth of the cotton trade and the opening of the Suez Canal in 1869, Bombay took over from Kolkata as Indias main trade center. Today, the banks branches and sub-branches in India are directed and administered from Mumbai (Bombay) with Kolkata remaining an important trading and banking center.

2. GROWTH AND DEVELOPMENT OF THE ORGANISATION

The Chartered Bank opened its first overseas branch in India, in Kolkata, on 12 th April 1858. The Standard Bank opened for business in Port Elizabeth, South Africa, in 1863. It pursued a policy of expansion and soon amalgamated with several other banks LORVEN COLLEGE OF SCIENCE & MANAGEMENT 25

including the Commercial Bank of Port Elizabeth, the Colesberg Bank, the British Kaffarian Bank and the Fauresmith Bank. The Standard Bank was prominent in the financing and development of the diamond fields of Kimberly in 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Over time, half the output of the second largest goldfield in the world passed through the Standard Bank on its way to London. In 1892 the Standard Bank opened for business in Zimbabwe, and expanded into Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.), in 1911 and Uganda in 1912. Of these new businesses, Botswana, Zanzibar and the D.R.C. proved the most difficult and the branches soon closed. A branch in Botswana opened again in 1934 but lasted for only a year and it was not until 1950 that the Bank re-opened for business in Botswana. In Asia the Chartered Bank expanded opening offices in, Myanmar in 1862, what is now Pakistan and Indonesia in 1863, the Philippines in 1872, Malaysia in 1875, Japan in 1880 and Thailand in 1894. Some 34 years after the Chartered Bank appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the tea and rubber industries. During 1904 a branch opened in Vietnam. Both the Chartered and the Standard Bank opened offices in New York and Hamburg in the early 1900s. The Chartered Bank gaining the first branch licence to be issued to a foreign bank in New York. After the Second World War many countries in Asia and Africa gained their independence. This led to local incorporation in some countries, particularly in Africa. Other operations such as those in Iraq, Angola, Myanmar and Libya were nationalised, while in Indonesia the Jakarta office was destroyed in an attempted coup d'etat. In 1948 the Chartered Bank opened in Bangladesh and during 1957 it acquired the Eastern Bank. The Eastern Bank gave the Chartered Bank a network of branches including Aden, Bahrain, Beirut, Cyprus, Lebanon, Qatar and the United Arab Emirates. The Chartered Bank also entered into a joint venture to form the Irano-British Bank which opened for business in 1959. The bank grew rapidly and had 24 branches when it was nationalised in 1981. By the mid 1950s the Standard Bank had around 600 offices in LORVEN COLLEGE OF SCIENCE & MANAGEMENT 26

Southern, Central and Eastern Africa. Its network grew substantially in 1965 when it merged with the former Bank of British West Africa which had some 60 branches in Nigeria, 40 branches in Ghana and eleven branches in Sierra Leone in addition to operations in Cameroon and Gambia. Despite these acquisitions and expansion into new countries such as Mexico, South Korea and Oman (1968), both the Standard and Chartered Bank networks were comparatively small. Both viewed the future with some trepidation as the need to protect themselves from acquisition became ever more apparent. Standard Chartered PLC In 1969 the decision was made by the Standard Bank and the Chartered Bank to undergo a friendly merger thus forming Standard Chartered PLC. It was one year later that the descendants of the "Chartered Bank of India, Australia and China" were finally permitted to open a representative office in Sydney, Australia. Standard Chartered subsequently acquired the UK based Hodge Group, in which it already had a minority shareholding, and the Wallace Brothers Group. The Hodge Group brought to Standard Chartered an extensive network of UK offices specialising in installment credit and industrial leasing, and after a period of rationalisation its name was changed to Chartered Trust Limited. Standard Chartered's operations in Jersey emerged from the integration of other Hodge Group businesses with those of Wallace Brothers Bank (Jersey), Limited. Standard Chartered decided, after the merger, to expand the Group outside its traditional markets. In Europe a number of offices were opened including Austria, Belgium, Denmark, Ireland, Spain and Sweden as well as several major cities in the UK. Standard Chartered also opened offices in Argentina, Canada, Colombia, the Falkland Islands, Panama and Nepal. In the USA a number of offices were opened and three banks were acquired. These included the Union Bank of California which gave Standard Chartered a presence in Brazil and Venezuela. The opening of a branch in Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyds Bank of the UK made a hostile take-over bid for Standard Chartered. Standard Chartered won its right to remain independent but entered into a period of considerable change.

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By the late 1980s Standard Chartered already had considerable exposure to third world debt. To this was added provisions against loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered reviewed its operations and decided to focus on its core strengths of Consumer Banking, Corporate & Institutional Banking and Treasury in its well established operations in Asia, Africa and the Middle East. This led to a series of divestments notably in Europe, the United States and Africa. During this time staff numbers were reduced; businesses not considered core were sold or closed; associate holdings disposed of; unprofitable branches closed and back office functions consolidated. In addition expensive buildings were sold with the proceeds reinvested in the business, and the senior management team was radically changed and strengthened.

3. PRESENT STATUS OF THE ORGANISATION

Standard Chartered today Today Standard Chartered is the world's leading emerging markets bank employing 30,000 people in over 500 offices in more than 50 countries primarily in countries in the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas. The new millennium has brought with it two of the largest acquisitions in the history of the bank with the purchase of Grindlays Bank from the ANZ Group and the acquisition of the Chase Consumer Banking operations in Hong Kong in 2000. These acquisitions demonstrate Standard Chartered firm committed to the emerging markets, where we have a strong and established presence and where we see our future growth. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 28

Standard Chartered is one of the world's most international banks, with a management team comprising 70 nationalities. Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalisation. It serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, custody, foreign exchange, debt capital markets and corporate finance. Standard Chartered is well-established in growth markets and aims to be the right partner for its customers. The Bank combines deep local knowledge with global capability. The Bank is trusted across its network for its standard of governance and its commitment to making a difference in the communities in which it operates.

4. PRODUCT PROFILE

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MILEAGE Cash overdraft for car owners Introducing Mileage, a cash overdraft facility for car owners. With the combined benefits of a loan and a credit card. And without any pre-payment charges or the hassle of excess documentation.

Unique Features: Cash overdrafts up to 65% of the assessed value of cars less than 5 years old. A Mileage ATM card and a multi-city chequebook. Flexibility in repayment with a minimum 5% of the value of your outstanding balance every month. No PDC (Post Dated Cheques) required. Flexibility in repayment, in the form of an overdraft, with no binding on the end use.

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Mileage is available at: Ahmedabad, Bangalore, Kolkata, Chennai, Kanpur, Mumbai, New Delhi, and Pune. Eligibility

Salaried individuals Minimum Income Minimum Loan amount : Rs. 60000 p.a. : Rs. 50000

Maximum Loan amount : Rs. 300000 Self Employed Individuals / Proprietorship / Partnership Minimum Income Minimum Loan amount Maximum Loan amount : Rs. 60000 p.a. : Rs. 50000 : Rs. 700000

Private Limited Companies "Indirect lending" whereby the overdraft is for the Company, based on the guarantee of the Director who should meet the criteria applicable for Self Employed Individuals. Loan Tenure One year. Renewal by one more year, subject to performance review by the Bank. Schemes we offer Vanilla scheme: Based on the income proof submitted. 31

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18% daily reducing balance.

High Equity scheme: Income proof not required. Valid for new cars only. Loan amount limited to 50% of the new car value. 18% daily reducing balance.

Privileges scheme: Income proof not required. You need to submit your track record of repayment on an earlier loan. 19.5% daily reducing balance. E.g. if a you have a limit set up of Rs. 150000 under the High Equity scheme, and you withdraw Rs. 50000 for 10 days, you shall be charged 18.00% reducing balance interest for 10 days only.

Loan to Value (LTV) chart for approved Car models: new and used

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Model Maruti 800 cc Maruti Esteem Maruti Zen Maruti Zen Diesel Maruti Omni Maruti Baleno Maruti Alto Maruti Wagon R Fiat Uno Opel Astra Opel Corsa Ford Ikon Hyundai Santro Hyundai Accent Daewoo Matiz Mitsubishi Lancer Honda City

Vanilla 55% 50% 55% 55% 55% 50% 55% 55% 55% 50% 50% 50% 55% 50% 55% 50% 50%

High Equity 50% 50% 50% N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 50% 50% 50% 50% N.A. 50%

Privileges 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65%

5. FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

1. MARKETING LORVEN COLLEGE OF SCIENCE & MANAGEMENT 33

The marketing department takes care of the market development activities, network expansions, sales and collections, customer service and DST infrastructure development, product management and institutional sales and marketing accounts. 2. FINANCE AND ACCOUNTS Finance and accounts department deals with corporate finance, account matters related to employees, company infrastructure, investments and assets. 3. HRD & IR (HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS) HRD and IR takes care of employee related matters like new appointments, promotions, increments, developmental training programme for the employees and industrial relation activities. 4. R & D (Research And Development Department ) R & D will carry out research on new banking products and carry out appropriate developments on the product before certifying satisfactory performance to the management. 5. MODERNISATION This department carries out the well maintenance of the existing banking products, Direct Sales Teams, processing centers and branches and necessary updating or fixing of new banking products from time to time.

6. SYSTEMS Systems department will make required systems department to department for the easy working and for the fast and right information connecting all departments. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 34

Departments are classified according to different banking products also. The functional departments, which look after different products, are credit card department, savings account department, car loans department, Mileage department, and different DSTs, which carry out the marketing and sales of different banking products.

5.1 CLASSIFICATION AND TABULATION OF DATA Classification of Data

Classification can be defined as the process of arranging data into sequences and groups according to their common characteristics or separating them into different but related parts. The basis of the criteria with respect to which the data are classified primarily depend on the objectives and purpose of the enquiry. In this research, the objective is to study the consumer behaviour and the sales potentiality towards Mileage from Standard Chartered Bank in Bangalore city. In this study, the data may be classified on the basis of following criterion. a) People who own a car, their salary, the mode of purchase of their car. b) According to different car loans the people prefer. c) People who are aware of Mileage ,Mileage customers and reason to opt

Mileage.

d) According to the factors which the people keep in mind before applying a loan, the banks they prefer etc. e) According to the opinion and satisfaction towards Mileage.

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The data obtained from the other questionnaire designed for sales managers and executives to assess the sales potential are classified on the following basis: a) Number of customers in a month, class of customers and type of customers. b) On the basis of sex, the customers are classified. c) Average sales in a month in a branch and by an executive. d) On the basis of a after sales service and customer satisfaction.

Tabulation of Data
By tabulation, we mean the systematic representation of the information contained in the data in rows and columns in accordance with some salient features a characteristic. The tables of above classified data are given below. Tabulation makes the data comprehensible and facilitates compassions and the work of further statistical analysis, averaging, correlation etc. It makes the data suitable for further diagrammatic and graphic representation. This enables us to draw the attention of the observer to specific items by means of compassions, emphasis and arrangement of the layout. It also facilitates the detection of the errors and the omission in the data.

5.2 Analysis and Interpretation of Data

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After tabulating, the data must be analyzed, researcher often use statistical interpretation which concentrate on what is average or what deviates from average. Statistical interpretation shows how widely response vary and how they are distributed in relation to the variables, being measured statistical market rely on estimates of expected error from the true value of population. The analysis and interpretation of data may lead the researcher to accept or reject the hypothesis being selected.

TABLE-1
Table showing the no. of people in different range of monthly income.

Income (Rs) Below 5000 5000-10000 10000-15000 15000-20000 Above 20000 Total

No: of Respondents 12 15 8 40 25 100

Percentage 12% 15% 8% 40% 25% 100%

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Below 5K 5K-10K 10K-15K 15K-20K Above 20K

Source: Questionnaire

Analysis It is observed that out of 100 respondents who own at least one car, 12 were having a monthly income of below 5000, 15 were having a monthly income in the range 500010000, 8 were in the range 10000-15000, 40 people had an income of 15000-20000, 25% of the people had income above 20000. Interpretation We can see from the survey that the people whose monthly income is between 15000-20000 are the largest users of cars; around 40% of the car owners fall in this salary range. Around 25% of car owners have above 20000 as their salary and 15% have 5000-10000 as their monthly salary.

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TABLE-2
Table showing the percentage of people who purchased their cars under loan.

Mode of Purchase Cash Loan Total

No of Respondents 40 60 100

Percentage of people 40% 60% 100%

Source: Questionnaire

60 40 20 0 Cash Loan Mode of purchase

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Analysis Out of 100 respondents (car owners), 40% people have purchased the car on cash and the rest 60% of the people purchased the car under a loan. Interpretation It is observed that 60% of the people who purchased their cars under a loan include both new cars and used cars and out of 40% of the people who purchased their car on cash, most of them bought used cars, which are cheap enough to pay by cash.

TABLE-3
Table showing the most preferable car loan facility by different banks

Loans ICICI Car loans HDFC Car loans GE Country wide Others Total

No. of Respondents 30 16 26 28 100

Percentage 30 16 26 28 100%

Source: Questionnaire

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ICICI HDFC GE Country Wide Others

Analysis Out of 100 respondents, 30% of the people prefer ICICI car loans, 26% of the people prefer GE Country wide car loans,16% prefer HDFC Car loans, 28% of the people prefer other Car loans. Interpretation We can see from the survey that 30% of the people prefer ICICI car loans which is the most preferable. It is seen that most of the maruti owners prefer GE country wide as the company suggest this. 28% of the people prefer other car loans and loans which include loan offered by local institutions and other banks.

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TABLE-4
Table showing the awareness of Mileage among the people in Bangalore

Awareness Heard of Mileage (Aware) Not heard of Mileage (Unaware) Total

No. of Respondents 62 38 100

Percentage 62% 38% 100%

Source: Questionnaire

70 60 50 40 30 20 10 0 Aw are Not Aw are Aw areness of "Mileage"

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Analysis

It is seen that out of 100 respondents surveyed, 62% of the people were aware of mileage and 38% of the people were unaware of mileage.

Interpretation

It is observed that only 62% of the population is aware of the mileage and 38% are not heard of the product. This is because of the lack of promotional activities and advertisement.

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TABLE-5
Table showing the percentage of Mileage customers in Bangalore.

Customers Mileage Customers People who are not aware of mileage but not a customer Non customers of mileage Total

No. of Respondents 33 29 38 100

Percentage 33% 29% 38% 100%

Source: Questionnaire

40 30 20 10 0 Mileage Customer Non custom ers of People not aw are Mileage Customers

Analysis LORVEN COLLEGE OF SCIENCE & MANAGEMENT 44

The survey shows that only 33% of the population in Bangalore are mileage customers and 67% of the people are non customers. Out of this 67% of the people, 29% of the people are aware of the product but still not a customer. Interpretation It is observed from the survey that 29% of the people in Bangalore are aware of the product mileage but they are not customers. Out of 62% of the people who are aware of the mileage. Only 33% of the people are customers and make use of the facility. This may be due to the lack of services, the product offer which the people are looking for. Another 38% of the people are not at all aware of the product and this is because of the lack of promotional activities.

TABLE-6
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Table showing the factors which people keep in mind when they go for a loan

Factors No Post Dated Cheque Control Over Interest Outflow Savings A/C or Current A/C Debit card Credit card Facility Easy EMIs Others

No: of people 15 20 10 25 25 05

Source: Questionnaire

No PDC Control Over Intrest Flow Debit Card Credit Card Facility Easy EMI Others

Analysis

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The survey shows that 25 people looks for easy EMIs when they go for a loan, 20 people finds the control over interest outflow as a factor when they apply for a loan, 15 people selected post dated cheques as a factor, 05 people looks on other factors when they go for a loan. Respondents have selected more than one factor, which influence them when applying for a loan.

Interpretation We can see from the survey that most of the people look for easy EMIs and the control over interest outflow while applying for a loan. They find it comfortable when these factors are flexible. Some of the people look for no post dated cheques schemes, credit card facility etc. Most of the people who selected these factors are mileage customers, in fact mileage is the only loan, existing in Bangalore, which offers such facilities. Some of the people look for other factors such as less documentation, comfortable tenor period of the loan.

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TABLE-7
Table showing the percentage of mileage customers who are liable to pay other loans

Liable to pay other loans No. of Respondents Yes No Total 84 16 100

Percentage 84% 16% 100%

Source: Questionnaire

100 80 60 40 20 0 Yes No Liable to pay other loan

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Analysis

Out of 100 people surveyed who are mileage customers, around 84% are liable to pay other loans. The rest 16% are not liable to pay any loan other than mileage. Interpretation

Most of the mileage customers are liable to pay other loans. Only 16% of the mileage customers in Bangalore are not liable to pay any other loan. This survey shows that most of the mileage customers are middle class businessmen.

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TABLE-8
Table showing the customer preference towards the different kinds of banks

No: of Respondents Banks Local Financial Institutions Nationalized Banks Multi National Banks Both MNC and Nationalized Banks All financial Institutions Not interested in any Banks Total Source: Questionnaire 10 4 100 13 16 15 42

Percentage 13% 16% 15% 42% 10% 4% 100%

Loan Financial Inst Nationalized Bank Multi National Bank Both MNC & Nationalized All Financial Inst Not Interested

Analysis LORVEN COLLEGE OF SCIENCE & MANAGEMENT 50

Out of 100 respondents, 42% of the people prefer both nationalized and Multi national Banks when they go for a loan, 15 % of the people prefer only MNC banks, while 16 % people prefer nationalized banks, 4% of the people are not interested in any banks. Interpretation

The survey shows that Multi Nationalised banks and the nationalized banks are the most preferred by the people when they go for a loan. 13% of the people prefer local financial institutions and 10% of the people prefer all financial institutions.

TABLE-9
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Table showing the preference among different banks by the people in Bangalore.

Banks Standard Chartered ICICI Bank Citibank HDFC Bank Others

No: of Respondents 28 33 18 15 6

Source: Questionnaire

Standard Chartered ICICI Bank Citi Bank HDFC Bank Others

Analysis

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The survey shows that 33 people prefer ICICI bank, 28 people prefer Standard Chartered bank, 15 people prefer HDFC, 18 people prefer Citibank and 6 people prefer other banks also. Each Respondent prefer more than one bank when they go for a loan.

Interpretation

We can see from the survey that ICICI bank, which is the leading nationalized bank in India, is the most preferred by the people when they go for a loan. People prefer more than one bank when they go for a loan. They also prefer HDFC, Citibank, Standard Chartered, and other banks. Others include SBI, IOB, BOB etc. We can see that nationalized banks are the most preferred. This may be because of the lack of knowledge about the multi national banks among the people.

TABLE-10
Table indicating the opinion regarding the unique features of Mileage LORVEN COLLEGE OF SCIENCE & MANAGEMENT 53

Rank Good Comfortable Useful Not Satisfactory Others Total

No. of Respondents 26 23 24 18 9 100

Percentage 26% 23% 24% 18% 9% 100%

Source: Questionnaire

Good Com ortable Useful Not Satisfactory Others

Analysis

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Out of 100 respondents, 26% of the people rank the unique features of mileage as good, 24% finds it useful for them, 18% says it is not satisfactory and 9% of the people has other opinions. Interpretation

It is observed from the survey that most of the people says the unique features of the mileage is good. 24% of the people find it useful for them, 23% says it is comfortable for them to repay, 9% of the people has other opinions which include suggestions to improve the product.

TABLE-11
Table showing customer satisfaction towards mileage LORVEN COLLEGE OF SCIENCE & MANAGEMENT

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Customer Satisfaction No. of Respondents Yes No Not a customer Total 29 4 67 100

Percentage 29% 4% 67% 100%

Source: Questionnaire

70 60 50 40 30 20 10 0 Yes No Not a Custom er

Custom er Satisfaction

Analysis

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Out of 33% people who are mileage customers, 29% of the customers are satisfied being a mileage customer, only 4% of the customers are not satisfied with the mileage.

Interpretation

It is clear from the survey that 29% of the mileage customers are satisfied being a mileage customer. The rest 4% of the customers are not satisfied being a mileage customer. This may be because of the high per annum interest and other features which are not comfortable for the customers.

TABLE-12

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Table showing the percentage of respondents who will recommend MILEAGE to a friend.

Recommend for a friend Yes No Total

No. of Respondent 85 15 100

Percentage 85% 15% 100%

Source: Questionnaire

100 80 60 40 20 0 Yes No Recomm end for friend

Analysis

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From the survey, it is found that out of 100 respondents, 85% of the people recommend mileage for friends or relatives, the rest 15% of the people do not recommend the product for friend and relatives. Interpretation

It is found from the survey that most of the people recommends the product for friends and relatives. These people might have the exact product knowledge and are well aware of its unique features. 15% of the people do not recommend mileage for a friend or relative. This includes unanswered respondents also. This may be because of the lack of product knowledge and these people are unaware of the unique features of the Mileage.

TABLE-13
Table indicating the after sales service offered by the Mileage authorities. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 59

Rank

No: of people (Mileage Customers)

Excellent Satisfactory Not Satisfactory Poor Others Total Mileage Customers

11 14 2 2 4 33

Source: Questionnaire

14 12 10 8 6 4 2 0 Excellent Not satisfactory Others

Sales Service

Analysis

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Out of 33 mileage customers surveyed, 14 people says the after sales service as satisfactory, 11 people says that the after sales service is excellent, 4 customers selects others. Others include average, good and other suggestions. Interpretation

It is found that out of 33 mileage customers, 41.2% ranks the after sales service offered by the authorities as satisfactory, 33.3% ranks it excellent, 12.1% says other opinions, 6.06% ranks it poor and 6.06% says not satisfactory. Most of the people are satisfied with the after sales service, but there are some people who are not satisfied. May be the lack of communication is the reason for this. The authorities are making sure the service is offered to each and every customer equally.

TABLE-14

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Table showing the percentage of people who think Standard Chartered Bank is successful in fulfilling the customers requirements through Mileage

Successful in fulfilling the No. of Respondents requirements Yes No Total Source: Questionnaire 56 44 100

Percentage 56% 44% 100%

60 50 40 30 20 10 0 Yes No Successful filling of requirem ents

Analysis

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Out of 100 respondents, 56% of the people say Standard Chartered is successful in fulfilling the customers requirements through Mileage. 44% say that the bank is not successful in fulfilling the requirements of the customers through Mileage. Interpretation

It is observed from the survey that most of the people find that the bank is successful in fulfilling all requirements of the customer. Some 44% of the people say that the bank is not successful in fulfilling the customers requirements.

TABLE-15
Table showing the percentage of respondents who think Mileage is a solution for all financial needs LORVEN COLLEGE OF SCIENCE & MANAGEMENT 63

Opinion Yes No To some extent Total

No. of Respondents 36 16 48 100

Percentage 36% 16% 48% 100%

Source: Questionnaire

50 40 30 20 10 0 Yes No To som e extent Solution through Mileage

Analysis Out of 100 respondents, 48% of the people find mileage is a solution to all financial needs to some extent, 36% of the people thinks mileage is a solution to all financial needs, 16% of the people says it is not a solution for all financial needs. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 64

Interpretation

It is found from the survey that 48% of the people find mileage as a solution for all financial needs to some extent. Most of the people find it a solution to some extent. Around 36% of the people think that mileage as a solution to all financial problem of a businessman. 16% of the people do not find mileage as a solution for all the financial problems.

1. FINDINGS:
It can be inferred from the study that most of the customers are either professionals or businessmen.
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 Most of the customers of the Standard Chartered Bank are from the upper middle strata of the society and they have been the customers of the Bank for more than 1 year. The study reveals that there has been an increase in the number of customers with in a period of one year and that the existing customers are satisfied with MILAGE. Most of the customers are of the opinion that the services of the Bank are satisfactory. Only 23% are delighted by the Services of the Bank.
The study also makes it clear that the phone banking service provided by the Banks is up to the level expected. It is observed from the survey that people whose salary is between 15000-20000 range are the largest users of cars in Bangalore. It is found from the survey that 85% of the people will recommend mileage for a friend or relative. It is observed from the survey that 33% of the people are mileage customers and 29% of the people are satisfied with the product. This means around 87% of the mileage customers are satisfied being mileage customer. It is found from the survey that most of the people are businessmen, around 35% are middle class and upper class businessmen. Even there are unemployed people who cover 25% of the total population of mileage customers.

2. CONCLUSIONS
It is observed from the survey that people whose salary is between 15000-20000 range are the largest users of cars in Bangalore. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 66

 It is understood from the survey that around 60% of the people bought their cars on loans. Most of the people who bought their cars on cash, bought used cars which are cheap enough to buy by cash. We can see from the survey that ICICI car loans are the most preferred. ICICI bank offers loans for most of the cars. It is also seen from the survey that most of the people prefer both Multi National Banks and Nationalized banks to apply for a loan. It is seen in the survey that ICICI bank and Standard Chartered bank are the most preferable in this category. From the survey it is clear that 62% of the people in Bangalore are aware of Mileage. Even if 62% of the people are aware of mileage, only 33% of the population in Bangalore are mileage customers. The rest 29% of the people are aware of mileage, but not a customer. This may be because of the lack of accurate product knowledge and the lack of executives in the area. It is observed from the survey that most of the people looks for control over interest outflow and Easy EMIs when they go for a loan. These are the factors which influence them when they apply for a loan. A large number of people looks on no Post Dated Cheques schemes and less documentation before applying loan. From the survey it is clear that around 84% of the existing mileage customers are liable to pay other loans. This survey shows that most of the mileage customers are middle class businessmen. From the survey it is clear that 26% of the people ranks the unique features of mileage as good. Another 24% of the people finds it useful for them and another 23% of the people say it is comfortable for them to repay the overdraft. The survey helped to create an awareness about the unique features of mileage among the people in bangalore. It is observed from the survey that 33% of the people are mileage customers and 29% of the people are satisfied with the product. This means around 87% of the mileage customers are satisfied being mileage customer. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 67

 It is found from the survey that 85% of the people will recommend mileage for a friend or relative. Out of 33% of the people who are mileage customers, 14% of the people are satisfied and ranks the after sales service as satisfactory. 11% says the after sales service as excellent. Around 56% of the people think that Standard Chartered bank is successful in fulfilling the requirements of the customers through mileage. It is observed from the survey that 36% of the people think that mileage is a solution for all financial problem of a businessman. Around 48% of the people think that mileage is a solution to all financial problems of a businessman to some extent. It is found from the survey that around 50% of the mileage customers are both middle and upper class. Most of the people are middle class and upper class businessmen. It is found from the survey that most of the people are businessmen, around 35% are middle class and upper class businessmen. Even there are unemployed people who cover 25% of the total population of mileage customers. The survey shows that 58% of the mileage customers in a month are males, 42% are females. This study reveals that males are the largest users of cars and they go for loans and overdrafts more than females. It is observed from the survey that the sales of mileage in a month are around 175-200. this is the average sales of mileage among all three branches in Bangalore in one months time. The average sales of mileage in a month by an executive are between 10-15. The target of each executive i.e.: 15 numbers per month. But they are free to end up within 10-15 numbers in a month.

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 From the study, the sales of mileage during the period July-November 2003 are obtained. In July 2003, the sales were just 146 numbers and in November 2003, it became 180 numbers. This shows the progress in the sales. In between, in October 2003, the sales went up to 239 numbers and this was a great achievement. From the sales managers and sales executives, we can see that around 90% of the mileage customers are satisfied with the product. 10% of the customers are not satisfied. This may be because of the lack of proper utilization of the facilities and proper product knowledge. It is found from the survey that 45% of the people say that Standard Chartered bank is successful in reaching each and every part of Bangalore city with its product to some extent. 15% of the people does not agree to this, this may be because of the lack of advertisement and promotional activities.

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3. SUGGESTIONS
From the survey it is clear that only 62% of the people in Bangalore are aware of mileage. The rest 38% of the people in Bangalore are unaware of the product mileage. This is because of the lack of promotional activities and advertisements. The company should come up with new techniques of promotional activities and advertisements. Only 33% of the people in Bangalore are mileage customers. The company should increase the number of Direct selling Teams (DST) and sales executives, so that people are aware of the product can avail the facility easily and thereby increase the number of mileage customers in bangalore. It is observed from the survey that most of the people look for control over interest outflow and Easy EMIs when they go for a loan. The company should concentrate on low interest and Easy EMIs to attract the people towards the product. The company should give proper product knowledge to the people and describe about the unique features of mileage and should add more features. They should conduct campaigns and counseling to create an awareness among the people about the unique features of mileage. The company should improve the after sales service of mileage. It can be done through toll free customer care numbers, door collection of cheque and cash etc. Improving after sales service will attract more customers towards mileage. The company should improve the product features and avail extra facilities and add-ons to the customers wich will make them think, Mileage is a solution for all financial needs of a businessman. It is observed from the survey that middle class and upper class businessmen are the major part of the mileage customers. The company popularize the product among low class businessmen and also avail the product to them. LORVEN COLLEGE OF SCIENCE & MANAGEMENT 70

The study shows that female customers are comparatively low than male customers, the company should concentrate more on female customers at the moment.

The survey shows that the sales in a month are around 175-200. Even if it is a large number of sales, the company should again try to improve the sales. This can be done through increasing the branch target, increasing the target of each sales executive and increasing the no: of DSTs (Direct Sales Team).

From the survey, the sales of mileage during the period July-November 2003 are obtained. Even if the sales have gone up from 146 numbers (July 2003) to 180 numbers (November 2003), the sales have come down to 180 (November 2003) as far as 239 (October 2003) is considered. The company should always try to increase the sales. It can be done through increasing the target of sales executives and force them to sell the product.

The company authorities should increase the popularity of Standard Chartered bank and thus reach each and every part of the city with its products.

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QUESTIONNAIRE (CUSTOMERS)

Dear Sir/Madam, I, PARAMJEET SINGH GOGIA, a student of MBA 4th semester LORVEN COLLEGE, Bangalore, is conducting a survey to find the customer behavior of the cash overdraft facility offered by the Standard Chartered Bank, named MILEAGE as a part of the partial fulfillment of the requirement of the degree in MBA. I kindly request you to supply me with the information as per your knowledge.

Name : Sex: . Age .. Occupation ..

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1. Do you own a car? Yes No If yes, Models__________________________________ 2. What is your monthly income? (i) Below 5,000 No

(ii) 5000 - 10,000 (iii) 10,000 - 15,000 (iv) 15,000 - 20,000 (v) Above 20,000

3. Is the car purchased under a loan? Yes

If yes, specify__________________________________ 4. Which car loan scheme do you prefer?_______________________ Why? Low Interest/Easy EMIs/Other_________________ 5. Have you heard of MILEAGE? Yes No

If yes, through____________________________________ 6. Are you a MILEAGE customer? Yes No

7. Through whom did you become a MILEAGE holder? ___________________________________________________

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8. Why did you choose MILEAGE? Personal financial needs/Low Interest/Credit Card facility/Others ___________________________________________________ 9. Are you liable to pay any other loan? Yes No

10. Tick the factors that you keep in mind when you go in for a loan. (i) No Post-dated cheques (ii) Control over Interest outflow (iii) Savings A/c or Current A/c debit card (iv) Credit Card facility (v) Easy EMIs (vi) Others

11. Your prefer to take loans from: (i) Local Financial Institutions (ii) Nationalized banks

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(iii) Multinational banks

12. If you prefer banks (Nationalized or Multinational banks) (i) Standard Chartered (ii) ICICI (iii) Citibank (iv) HDFC (v) Others

13. Regarding the unique features of MILEAGE (i) Good

(ii) Not satisfactory (iii) Comfortable (iv) Useful (v) Others

14. Are you satisfied being a MILEAGE customer? Yes

No

Why?_____________________________________________ 15. Will you recommend MILEAGE for your friend or others?

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Yes No 16. Why do you prefer other banks or institutions for loans? _________________________________________________

17. What else facility do you expect from Standard Chartered to be included for MILEAGE holders?__________________ 18. Regarding the after sales service offered by the MILEAGE authorities: (i) Excellent

(ii) Satisfactory

(iii) Not satisfactory (iv) Poor (v) Others

19. Is Standard Chartered Bank successful in fulfilling all your requirements through the product MILEAGE? Yes No 20. Do you think MILEAGE is a solution for all your financial needs?

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Yes

No

To

some

extent

THANK YOU FOR YOUR KIND COOPERATION

BIBLIOGRAPHY

Books
1) Sales Management Strategies & Cases : Richard R Still Edward W Coundiff 2) Marketing Management 3) Consumer Behaviour : Philip Kotler 9th Edition : Schiff man

Magazines
1) Business Outlook

Websites
1) www.standardchartered.com

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