Ralco PROJECT REPORT.docx - [PDF Document] (2024)

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    PROJECT REPORT

    ON

    Consumer Behaviour Towards

    RALCO Products

    In final fulfilment of Master of Business

    Administration (MBA)

    2012-14

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    TO WHOMSOEVER IT MAY CONCERN

    This is to certify that the project report titled

    CONSUMER BEHAVIOUR TOWARDS RALCO PRODUCTS

    c a r r i e d o u t b y t h e u nd er si gn ed h as be en

    a c c o m p l i s h ed u n d er m y g u i d a n c e & s u per v i s i o n b y

    Adesh Kalia ,who is an MBA student of School of

    Management Studies, Punjabi University ,Patiala. This projectisbeing submitted by him in the partial fulfilment of the

    requirements for the award of the Master of Business

    Administration from Punjabi University, Patiala .Thisproject

    report represents his original work and is worthy of

    consideration for the award of the degree of Master of

    Business Administration.

    Mr. G.S PASSI

    Sr. V.P. (MARKETING)

    RALSON (INDIA) LIMITED.

    G.T. ROAD, LUDHIANA.

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    DECLARATION

    I , hereby declare that the wor k pr esented her ei n i s

    genu i ne wor k done or i ginal l y by me an d h as n ot

    been pu b l i sh ed o r su bm i t t ed el sewh er e f o r the

    r equ i r emen t o f a degr ee programme. Any

    l i ter atur e, data or wor ks done by other s and ci ted

    within this project report has been given due

    acknowledgement and l isted in the reference section.

    Adesh Kalia Date-

    120426177M.B.A -1(E)School of Management Studies

    Punjabi University

    Patiala.

    Contents

    ACKNOWLEDGEMENT...........................................................................................................................5

    HISTORY OFTYRES.................................................................................................................................6HISTORYOFRUBBER..............................................................................................................................7

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    AN INTRODUCTION TO RALSON (INDIA)LTD.........................................................................................8

    HISTORY OF THECOMPANY......................................................................................8PRESENTSCENARIO...................................................................................................8PRODUCTRANGE.......................................................................................................9MISSION AND VISION..............................................................................................10PLANTLOCATION.....................................................................................................11INFRASTRUCTURE....................................................................................................11R&DLAB...................................................................................................................11

    o PHYSICALSECTION.............................................................................12oCHEMICALSECTION...........................................................................13oQUALITYCONTROL............................................................................13

    QUALITYCERTIFICATION.........................................................................................14DISTRIBUTIONALNETWORK....................................................................................15MAJORCLIENTS.......................................................................................................16EXPORTS..................................................................................................................17GLOBALPRESENCE..................................................................................................18INTERNATIONAL TRADE FAIRPARTICIPATION........................................................20AWARDS..................................................................................................................22MAINCOMPETITORS...............................................................................................23

    SWOT ANALYSIS OF THECOMPANY....................................................................................................24

    UNDERSTANDING CONSUMERBEHAVIOUR.........................................................................................30

    STAGES OF CONSUMER BUYINGPROCESS...........................................................................................36

    TYPES OF CONSUMER BUYINGBEHAVIOUR.........................................................................................37

    CATEGORIES THAT AFFECT CONSUMER BUYINGBEHAVIOUR.............................................................38

    CONCLUSION TOTOPIC........................................................................................................................43

    OBJECTIVES OFSTUDY..........................................................................................................................45

    NEED OFSTUDY....................................................................................................................................46

    RESEARCHDESIGN................................................................................................................................47

    RESEARCHMETHODOLOGY..................................................................................................................47

    TOOLS OF DATACOLLECTION...............................................................................................................48

    LIMITATIONS OFSTUDY........................................................................................................................49

    QUESTIONNAIRE...................................................................................................................................49

    REPORT OF LUDHIANA BRANCHSURVEY..............................................................................................51

    ANALYSIS OFSURVEY............................................................................................52REPORTOF AMBALA BRANCHSURVEY.................................................................................................57

    ANALYSIS OFSURVEY............................................................................................58REFRENCES...........................................................................................................................................63

    A RECENT TYRESURVEY..................................................................................................................... 64

    CONCLUSION TO THEPROJECT.............................................................................................................65

    ACKNOWLEDGEMENT

    Survey is an excellent tool for learning and exploration. Noclassroom routine

    can substitute that which is possible while working in realsituations.

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    Application of theoretical knowledge to practical situations isthe bonanzas of

    any survey. I would like to express my sincere gratitude to allat RALSON

    (INDIA) LIMITED, for giving me the opportunity to work and learnin this

    organization. The knowledge and experience I have gained, istruly invaluable.

    I would like to thank Mr. Sanjiv Pahwa (Chairman

    cum M.D.) and Mr. G.S. PASSI (Sr V.P. MARKETING) for giving mea

    chance to learn in their organisation. They have been mentors inthe true sense

    and a constant source of inspiration to me. Without theirefforts it would have

    been impossible for me to accomplish this project.

    I would also like to sincerely thank my parents, fellow studentsand seniors

    who were with me throughout the project, providing all the muchneeded

    support .It gives me immense pleasure to acknowledge all those,who have

    given me their time and energy to supply all valuable facts andopinions that has

    helped in bringing out this report to fruit .Finally, I wouldlike to thank all the

    respondents and friends who were instrumental in the successfulcompletion of

    this report.

    ADESH KALIA

    History of tyres

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    Tyres are r ing-shaped parts , e i ther pneumatic or sol id

    (incl uding rubber , me tals an d plastic composites), that fitaround

    wheels to protect them and enhance their effect.

    Pneumatic tyres are used on many types of

    vehicles, such as bicycles, motorcycles, cars, trucks,earthmovers, andaircraft.

    Tyres enable better vehicle performance

    by providing traction, braking, steering, and load support .Tyres

    form a flexible cushion between the vehicle and the road,which

    smoothes out shock and makes for a comfortable ride. Theearliest tires

    were bands of iron (later steel), placed on wooden wheels, usedon carts

    a n d w a g o n s .

    T h e t y r e w o u l d b e h e a t e d i n a

    forge f i re , p laced over the whee l and quenched , causing

    the metal to contract and fit tightly on the wheel. A skilledcrafter,

    known as a wheelwright, carried out this work. The tension ofthe metal

    band served the purpose of holding or "tying" the wooden spokesof

    the wheel together, hence the term "tyre".

    In addition to tying the spokes

    together, the tire also provided a wear-resistant su rf ac e toth e

    perimeter of the wheel . As wheels changed over t ime, the

    ter m "t yr e" continued to be used for the outer band even whenitno longer served the purpose of tying the spokes together.

    The word is "probably" or "perhaps"

    the wheel's "tire", an obsolete version of "attire". Tire is theolder

    spelling, but both were used in the 15th and 16th centuries (fora

    metal tire); tire became the settled spelling in the 17thcentury but tyre

    was revived in the UK in the 19th century for pneumatictyres,

    possibly because i t was used in some patent documents,though

    many continued to use tire for the iron variety. The firstpractical

    pneumatic tyre was made by the Scot, John Boyd Dunlop, in 1887for hisson's bicycle, in an effort to prevent the headaches his sonhad whilst

    riding on rough roads

    P n e u m a t i c t y r e s a r e m a d e o f a f l e x i b l ee l a s t o m e r m a t e

    rial , such as rubber, withreinforcing materials such asfabric

    and wire. Tire companies were first started in the early20th

    century, and grew in tandem with the auto industry. Today, over1 billion

    tyres

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    e p r o d u c e d a n n u a l l y , i n o v e r 4 0 0 t i r e fa c t o r i e s , w i t h t h

    e t h r e e t o p t i r e m a k e r s commanding a 60% globalmarket share

    HISTORY OF RUBBER

    Charles Marie de La Condamine is credited with introducing

    samples of rubber to the Acadmie Royale des Sciences ofFrance

    in 1736.[1] In 1751 he presented a paper by Franois Fresneau tothe

    Acadmie (eventually published in 1755) which described many ofthe

    propert ies of rubber . This has been referred to as the first

    scientific paper on rubber.

    The first European to return to Portugal from

    Brazil with samples of such water-repellent r u b b e r i z e dc l o t h s o

    s h o c k e d p e o p l e t h a t h e w a s b r o u g h t t o co u r t o n t h e

    c h a r g e o f witchcraft. When samples of rubber first arrivedin England,

    it was observed by Joseph Priestley, in1770, that a piece ofthe

    material was extremely good for rubbing out pencil marks

    on paper, hence the name "rubber ".

    The para rubber tree initially grew

    in South America, where it was the main source of whatlimitedamount of latex rubber was consumed during much of the19th

    century.

    About 100 years ago, its

    the Congo Free State in Africa was a significant source ofnatural

    r u b b e r l a t e x , m o s t l y g a t h e r e d b y f o r ce d l a b o r . A f t e r r e

    p e a t e d e f f o r t s ( s e e H e n r y Wickham) rubber wassuccessfully

    cultivated in Southeast Asia, where it is now widely grown.

    AN INTRODUCTION TO RALSON INDIA LTD.

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    HISTORY OF THE COMPANY

    Ralson (INDIA) Ltd. Ludhiana was started way back in year 1974by Sh.

    S.P. Pahwa , the then Chairman and his brother late Sh. O.P.Pahwa ,as

    one of the first successful attempts to manufacture bicycletyres in India.

    As years rolled by Ralson grew at an astounding pace to not onlylead in

    the domestic sector but achieved a breakthrough in internationalmarkets

    also, especially in the countries of South-Asia, Africa andmiddle east.

    Now the mantle of leading the company has come upon Mr. SanjivPahwa

    who is Chairman as well as Managing Director of the company.

    Today when the Indian bicycle industry is geared up to makeinroads into

    Europe ,Japan and U.S.A. ,the company has taken strategicdecision to

    implement an ambitious expansion programme which will increaseits

    current per day production to 1,00,000 tyres 1,50,000 tubes and20,000

    hubs. This will give Ralson an unmatched capability to offer thelargest

    and most comprehensive range of cycle tyres in India.

    Ralson sensing demand and supply gap has opened another plantat

    Doraha, 20 kms from Ludhiana .This plant makes tyres and tubesof

    moped,scooter,motorcycle,auto rikshaw,tractor,jeep and lightcommercial

    vehicles. Thus company has made deep root in automobile sectortoo.

    PRESENT SCENARIO

    Ralson is a name that stands for strength and endurance in thetire industry

    with more than 40 years of experience of running on roads. Thecompany

    has grown with time and the name needs no introduction intheinternational or national market today. The dynamic and out ofthe league

    approach of the leading front has elevated the company to newheights.

    From bicycle & Automobile tyres, tubes and bicyclecomponents, LCV

    and Three Wheeler tyres we take credit of producing a soaringnumber of

    1 lakh tyres and 1.20 lakh tubes a day.

    When it comes to bicycle tyres, the

    company is one of the few companies in the world which have thehighest

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    production rate in a day. Ralson tyres are known to bedependable, durable

    and of tough built. The quality of our product is continuouslyupgraded

    and monitored in order to offer to customer a quality producteverytime.

    With the launch of RALCO a few years back, the company venturedinto

    the hi-tech field of automobile tyres in two wheelers industryand within a

    short span they have attracted a wide customer base intwo-wheeler and

    farm tyres markets across continents. RALCO brand has lived upto the

    reputation of their customers as reflected in the growing marketshare of

    RALCO automobile tyres.

    Ralson is taping the full potential of booming global market andthe

    promising domestic scenario. The factory in Ludhiana is spreadover a

    sprawling 46 acres and employs a workforce of 4000 people. Withtotal

    turnover touching 600 crores, Ralson continues to surge ahead indomestic

    and overseas tyres markets by consistently delivering innovativeproducts,

    unparalleled quality and value for money to its vast multitudeof loyal

    customers.

    The company work as a team and deliver as a team.PRODUCTRANGE

    The company have been making Cotton Tyres, Nylon Tyresforbicycle, rickshaw, MTB , ATB range.

    Further in Tube range they make Natural Tubes:- Jointed TubesMoulded Tubes Butyl Tubes

    They are also a manufacturer of Automobile Tyres with thebrand

    name "RALCO Tyres"

    MISSION AND VISION OF THE COMPANY

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    MissionWe aim high, but it begins at low, we aim to run with theevery two wheeler on

    road. We know what we are manufacturing and how it affects you.We continue

    to strive on improving the technology and to be up to date onrequirements of

    todays market.

    While we understand that the customers are our base, weacknowledge the

    support of our stakeholders. So we strive to create a winningnetwork of

    customers and suppliers. We are a brand and we know theresponsibilities thatwe have on our shoulder. We remain fair andtransparent in our commercial

    and social dealings.

    Vision

    We want to be no.1 tyre manufacturer company in the eyes of ourcustomersacross the globe. We strive to accomplish the goal ofproviding a wide range of

    high quality tyres at affordable price and continue to furthermodernize and

    expanding the business.

    We believe in ourselves and we believe in what we deliver. Wecontinue to

    provide the excellence that we have been delivering over theyears.

    Plant location

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    Ralson Nagar ,G.T. Road Ludhiana . Doraha (20 kms fromLudhiana)

    Infrastructure

    Ralson (India) Limited has one of the state of artinfrastructure in

    the bicycle tyre & tube manufacturers industry. Ralson ismost trusted

    brand with 4 decades of manufacturing expertise. Under expansionplan

    Ralson has created an additional facility to manufacture TwoWheeler,

    Three Wheeler and farm tyres etc. under brand name RALCO".With

    latest technology adapted in the manufacturing and state ofartinfrastructure the company is able to give a mammoth production.The

    factory in Ludhiana is spread over a sprawling 46 acres andemploys a

    workforce of 4000 people. The company produces

    115,000 cycle tyres a day and around 30 lacs cycle tyres amonth.

    1,25,000 cycle tubes a day which makes 32.5 lacs per month.

    2000 Auto tyres per day & 50,000 per month

    Ralson Group has world class equipments and machineries with

    deployment of best process & practices and R&Dfacility.

    R&D LabThe Company has learnt that with the change of theregion

    the need for the different product is inevitable. That's why thepeople

    at Ralson try constantly to work on the innovative products andkeep

    experimenting to increase the safety in riding. Ralson Group hasworld

    class equipments and machineries with deployment of best process&

    practices and R&D facility. With R&D Lab accredited byDepartment of

    Science & Technology, Govt. of India the company ensuresthat for the

    meeting of quantity numbers the quality is never compromised.The R&D

    lab is one of the most sophisticated and best equipped R&Dset-ups in

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    cycle tyre industry in India for testing equipments for RawMaterials,

    semi-finished & finished product testing &evaluation.

    Ralson's R & D is crucial for:

    1. Innovation

    2. Safety

    3. Environmental excellence

    4. Quality productivity

    5. Energy conservation

    6. Up gradation of technology for export promotion

    7. Developing new products and processes

    8. Improving existing products and services

    9. Goal oriented together with cost effective

    10. Active implementation/commercialization of thetechnological

    development.

    The R & D department of Ralson consists of two sections

    A. Physical Section

    B. Chemical Section

    PHYSICAL SECTION

    Ralson has a vast range of machines to determine therequired

    characteristics of the rubber compounds, physical propertiesof

    finished products and various other materials used during thetyre

    manufacturing process. Listed below is the assorted range of

    machines used for the testing of the materials along with abrief detail of

    their functions .

    Rheometer : This machine is used to study reological

    propert ies of the f inal batch to ascertain curing time of

    particular compound at a present temperature. This machineassists

    in developmental work as well as in quality controlpurposes.

    Viscometer: This machine is used to test viscosity of compounds.This

    machine assists in developmental work as well as in qualitycontrol

    purposes.

    De-Metia Flex Testing Machine: This is used for checking the

    cracks growth rate number in rubber compound.

    Tensile Tester: Used for testing tensile strength, modulus,elongation at break, permanent set of compounds as well as finishedproducts.

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    Tensile Tester: Used for testing breaking load, elongationsat

    break of cotton as well as nylon yarn.

    Texture Testing Machine: Used for testing the tex/count ofcotton yarn.CHEMICAL SECTION

    The initial chemical testing and structural development of therubber

    samples are described below

    Ageing Tester: This machine is for testing ageing propertiesof

    compounds as well as of finished products, during which testsamples are

    subjected to hot circulating air of certaintemperature hours.

    Moisture Analyzer: Used to determine the moisture contentpresent inmaterial.

    Solvent Extractor: To determine the oil content of the rubbersample.

    Ph- Meter: Used to determine PH value of raw material used intyre

    manufacturing. While these machines are used to determine

    and evaluate the physical and chemical characteristics of

    the compound used in the tyre and tube manufacturing processesthecompany have the tyre endurance testing machines todetermine

    thee n d u r a n c e a n d l o n g e v i t y o f t h e f i n i sh e d p r o d u c t s .

    The company has two type of endurance testing machines

    Tyre Performance Machine: The machine tests the endurance of

    tyres according to ISIspecification.

    Endurance Testing Machine: This machine ensures that the tyresclear the minimum prescribed limits of running time as per R &D specifications

    Quality Control

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    Ralson believes in Quality in Quantity. The company is the firstand only

    Bicycle Tyre manufacturer in India to be accredited with an ISO9001

    Certification. By providing unmatched quality and ample optionswe

    ensure that customer expectations are always and fully met.Ralson tyres

    are dependable, durable and tough built. In Ralson factory, thequality

    assurance process starts functioning right from the raw-materialentry

    stage and continues up to the packing of final tyres and tubes.The quality

    is continuously upgraded and monitored in order to offer to thecustomer a

    product which is comparable to the best available anywhere. Thecompany

    regularly lends its tyres to rally and motocross riders to testtheir

    ruggedness over different types of terrains and weatherconditions.

    Physical Strength: Our tyres are tested for their strength andruggedness

    on different kinds of roads, RALCO automobile tyres areoutstanding for

    their range, reliability and sturdiness and are creating newstandards of

    durability, riding comfort and road-grip. The company regularlylends its

    tyres to rally and motocross riders to test their ruggednessover different

    types of terrains and weather conditions. They are tested onstandards of

    Strain, Endurance, Flex & Fatigue, air permeability etc.

    Robust Process Control Separate Rapid Control Laboratory is

    equipped with Rheometers Viscometers and Sp. Gr. Balance to test&

    release 100% batches for better product reliability andconsistency.

    Quality Certification

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    The company is an ISO 9001:2008 certified by M/s IntertekMoody

    International. Apart from this we have other prestigiouscertifications with

    us like BIS and we are striving to achieve EN certification aswell. Our

    R& D Lab is recognized by DSIR.

    Distributional Network

    Having a network of our own 31 branch offices & 13 C & fa*gents with a

    strong base of 5000 dealers, the companys product is availablein every nook &

    corner of the country and the company has developed anunparalleled reach &availability to its customers. The companyis consistently delivering innovative

    products, unparallel quality and value for money to its vastmultitude of loyal

    customers. For sale or after sale, the company stays close athand and are

    available wherever the customer may be located, the company isalways at

    service. It is the companys endeavour to continuously upgradeand monitor

    their quality to offer to the customers a product which iscomparable to the best

    available anywhere.

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    Major Clients:

    RalsonRALCO is the most favoured brand of major OEMs likeHEROAVONT.IATLAS & other prominent bicycle manufacturers ofIndia. With

    our quality products, the company has been able to win theconfidence ofour

    clients.

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    Exports

    Ralson is a brand that has been tried and tested by millions.Ralson tires

    are fabricated to meet the demands of the global customersequally.

    With the companys quality standards marked high, the companyis

    catering to the international market and thankfully standingupright on our

    client's and customers expectations.

    Ralson is a brand that is trusted by millions and there areseveral countrieswhere its products are exported. Meeting theglobal requirements is not

    easy and its need not be explained that with the change of theregion and

    environment, demand for a specific product rises. Be in thedemand for

    special designs, size, shape, and quality, we have been able tomark our

    presence in the global market, by meeting the customers demandsthe

    company has been able to give them the product that matches theGlobal

    Standards. This world is very big and different and there aremany places

    where it would be difficult to find a road. But the company iscovering

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    most of it under the safety and quality of its manufacturedtires.

    Ralson tyres and tubes are exported to the countries of LatinAmerica,

    South America, Africa, Middle-East & Far East, in the year2010-2011,

    companys export turnover stood at Rs. 94 crores. The company isproud

    winner of the CAPEXIL top exporter award in cycle tyre categoryfrom

    last several years for leading exports of bicycle tyres.

    Ralson exports Tires and Tubes to over 60 Countries in LatinSouth

    America, Europe, Middle East, Africa and the Pacific Region.These

    markets are serviced by our Ludhiana office in INDIA.

    Global Presence

    Ralson has taken up the challenge in delivering quality tyres,tubes and

    components to demanding markets abroad. We have already made

    our presence felt in the various countries of Africa, Gulf,Latin America

    and South Asia. Ralsons outstanding performance in export hasalso been

    applauded by Government of INDIA by way of the CAPEXIL TOP

    EXPORTS AWARDS.

    Ralson products are not sought after by overseas buyers fortheir price,

    rather Ralson has been successful in creating a brand image ofquality,

    innovation and workmanship. Ralson has an unmatched capabilityto

    custom make tyres, tubes and components for its overseasbuyers.

    THE COMPANY HAS CUSTOMERS IN-

    Afganistan

    Argentina

    Bangladesh

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    Bahrain

    Bolivia Kenya

    Brazil kuwaitBurkina Faso Lebanon

    Cameroon Malawi

    Chad Mexico

    Chile Maldives

    Colombia Mali

    Congo Morocco

    Costa rica Mozambique

    Denmark Namibia

    Egypt Nigeria

    France Oman

    Ghana Panama

    Guatemala Paraguay

    Holland Portugal

    Honduras Pakistan

    Hungary Senegal

    Indonesia South Africa

    Iran Saudi Arabia

    Italy Spain

    Iraq Sri Lanka

    Ivory coast Syria

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    Jordan Sweden

    TanzaniaTrinidad,Tobago

    Tunisia

    Turkey

    U.A.E.

    Uganda

    U.S.A

    Ukraine

    Uzbekistan

    Venezuala

    Yemen

    Zambia

    Zimbabwe

    International Trade Fair participation

    Promotion by trade fairs is important for any business. They area podium

    to exhibit the latest products, any experiments studyactivities. Also they

    help in the exposure of product to the industry environment andto take a

    feel of the latest trends in the market. Ralson continuouslyparticipate in

    the national and international trade fairs and we have won theappreciation

    of our peer industries.

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    Some of the trade fairs where the company demonstrated itsproducts are:

    INTERBIKE INTERNATIONAL BICYCLE EXPO

    (LAS VEGAS, U.S.A)

    IFMA

    (KOLN, GERMANY)

    EICMA

    (MILAN, ITALY)

    TAIPEI CYCLE SHOW

    (TAIWAN)

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    CHINA CYCLE SHOW

    (CHINA)

    VELOPARK

    (MOSCOW, RUSSIA)

    VELOBIKE

    (KIEV, UKRAINE)

    AWARDS

    Innovations at Ralson have been acknowledged substantially andfrom

    time to time. Ralson has won many awards and accolades forits

    performance. We have not only won the industrial services awardsbut also

    for handling our community services well.

    Details of Certifications/Awards & Achievements

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    The company is proud of winning the CAPEXIL top exporter awardin

    cycle tyre category from last three years. Ralson brand is aGovt. of India

    recognized "EXPORT TRADING HOUSE".

    Special Export awards by CAPEPC

    Ralson has won National Safety Awards. MANUFACTURE OF RUBBER

    & PLASTIC PRODUCTS

    Best Supplier and Quality Champion awards from OEM.

    MAIN COMPETITORS OF RALSON (INDIA) LTD.

    INTERNATIONAL TYRES METRO TYRES

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    BEDROCK TYRES HINDUSTAN TYRES

    SWOT ANALYSIS OF THE COMPANY

    Definition of SWOT

    By specifying clear objectives and identifying internal andexternalfactors that are either helpful or not, a short and simpleSWOT

    analysis is a useful resource which may be incorporated intoan

    organizations strategic planning model.

    SWOT Analysis

    Strengths- Internal attributes that are helpful to theorganization toachieving its objective

    WeaknessesInternal attributes that are harmful to theorganizationto achieving its objective

    OpportunitiesExternal factors that help the organizationachieveits objective

    Threats - External factors that are harmful to the organizationtoachieving its objective.

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    After identifying the SWOTs, identification of the factors andtheir

    interdependence helps clarify the steps needed to achieve theending

    objectives.

    Advantages of SWOT Analysis

    SWOT Analysis is instrumental in strategy formulation andselection. It isa strong tool, but it involves a great subjectiveelement. It is best when

    used as a guide, and not as a prescription.

    Successful businesses build on their

    strengths, correct their weakness and protect against internalweaknesses

    and external threats. They also keep a watch on their overallbusiness

    environment and recognize and exploit new opportunities fasterthan its

    competitors.

    SWOT Analysis helps in strategic planning in followingmanner:-

    It is a source of information for strategic planning. Buildsorganizations strengths. Reverse its weaknesses. Maximize itsresponse to opportunities. Overcome organizations threats. It helpsin identifying core competencies of the firm. It helps in settingof objectives for strategic planning. It helps in knowing past,present and future so that by using past and

    current data, future plans can be chalked out.

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    SWOT Analysis provide information that helps in synchronizingthe firms

    resources and capabilities with the competitive environment inwhich the

    firm operates.

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    Limitations of SWOT Analysis

    SWOT Analysis is not free from its limitations. It may causeorganizations

    to view circ*mstances as very simple because of which theorganizations

    might overlook certain key strategic contact which may occur.Moreover,

    categorizing aspects as strengths, weaknesses, opportunities andthreats

    might be very subjective as there is great degree of uncertaintyin market.

    SWOT Analysis does stress upon the significance of these fouraspects,

    but it does not tell how an organization can identify theseaspects for itself.

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    There are certain limitations of SWOT Analysis which are not incontrol

    of management. These include:-

    Price increase Inputs/raw materials Government legislationEconomic environment Searching a new market for the product whichis not having overseas

    market due to import restrictions, etc.

    Internal limitations may include:-

    Insufficient research and development facilities Faulty productsdue to poor quality Lack of skilled labour Poor facilities.

    SWOT ANALYSIS OF RALSON (INDIA) LIMITED

    Having an in depth view on the company one can do the swotanalysis of

    this company. The swot analysis is a very useful tool at thehands of the

    management if done properly and if acted upon its weaknesses andthreats

    a company can grow and make profits. An internal andexternal

    assessment of company is very important for any business andshould be

    done from time to time.

    STRENGHTS

    Following are the strengths of Ralson (India) ltd.

    Company has a very strict quality control policy which ensurestheproduction of best quality products.

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    Company has a very big production base for manufacturingbicycletyres.

    The company has got Hero cycles, Atlas ,Avon cycles as itsOEMsThe company possesses a very sound dealer network all overthe

    country.

    Its a 100% internally financed company. The amount ofborrowedcash is very less.

    The company has the biggest R&D facility in the industry.Its R&Ddepartment is recognised by Department of Science, Govtof India.

    The company has employed the best and latest technologies sinceitsinception. Its been using SAP system since 2001. Thesepractices

    have increased the productivity of employees.It has recentlybecome the first company to manufacture tyres

    conforming to ISI standards.

    Ralson tyres have highest sales in market in spite of highprices.Over the years the company has established a loyal brandname for

    itself which is its strengths.

    WEAKNESS

    Like the two sides of a coin everything has two perspectives.Same is the case

    with Ralson (INDIA) Ltd. The company has weaknesses as listedbelow.

    Lack of market researchThe plant could have been made fullyautomatic but it still requires huge

    workforce for its full execution. During my plant visit Iobserved that

    there was a huge labour turnout and the plant was running tojust 50% of

    its capability. This leads to very low production and the demandexceeds

    supply. The customers of the company had delays in supply oftheir

    order. Those customers will go to other companies to gettyre

    inventories. Hence this gives other companies a chance to eatRALCOs

    share of market. Also dealers said that Metro and internationaltyres are

    giving RALCO a stiff competition.

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    Although the quality control of the company is very strict itstillproduces defected tyres and tubes in the order of 2-3% oftotal

    production. This is a significant number when converted to realnumbers

    since production is very high .This can be reduced further.

    After the survey it was also found out that the dealers of thecompany areunsatisfied and this is an area where company should payattention to.

    The dealers should be satisfied because they are the ones whosell the

    product to retailers and consumers.

    Because of low margins the dealers lack motivation to sellRALCOtyres.

    OPPURTUNITIES

    The company has many opportunities on which it can capitalise togrow in

    future

    There is a huge demand for RALCO cycle tyres in domesticmarket.Because of globalisation international opportunities forexports have

    opened up.

    Company is also having huge opportunities in other tyresegments.THREATS

    The company faces threats which are listed below

    The major chunk of labour working in the company comes fromstateslike Bihar and Uttar Pradesh. Due to industrialisation inthese states the

    company faces acute labour shortage now-a-days.

    Increase in prices of raw material Increase in price of powerand labour. Incoming of foreign products and technologies ex.Chinese tyres.

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    UNDERSTANDING CONSUMER BEHAVIOUR

    Consumer behaviour is the study of individuals, groups, ororganizations

    and the processes they use to select, secure, and dispose ofproducts,

    services, experiences, or ideas to satisfy needs and the impactsthat theseprocesses have on the consumer and society. It blendselements from

    psychology,sociology,social anthropology and economics. Itattempts to

    understand the decision-making processes of buyers, bothindividually and

    in groups. It studies characteristics of individual consumerssuch as

    demographics and behavioural variables in an attempt tounderstand

    people's wants. It also tries to assess influences on theconsumer from

    groups such as family, friends, reference groups, and society ingeneral.

    Customer behaviour study is based on consumer buying behaviour,with

    the customer playing the three distinct roles of user, payer andbuyer.

    Research has shown that consumer behaviour is difficult topredict, even

    for experts in the field. Relationship marketing is aninfluential asset for

    customer behaviour analysis as it has a keen interest in there-discovery of

    the true meaning of marketing through the re-affirmation ofthe

    importance of the customer or buyer. A greater importance isalso placed

    on consumer retention, customer relationship management,

    personalisation, customisation and one-to-one marketing. Socialfunctionscan be categorized into social choice and welfarefunctions.

    The observation shows the interaction of stimuli, consumercharacteristics,

    decision process and consumer responses. It can be distinguishedbetween

    interpersonal stimuli (between people) or intrapersonal stimuli(within

    people). The focus is not set on the processes inside aconsumer, but the

    relation between the stimuli and the response of theconsumer.

    The marketing stimuli are planned and

    processed by the companies, whereas the environmental stimulusis given

    by social factors, based on the economical, political andcultural

    circ*mstances of a society. The buyers decision contains thebuyer

    characteristics and the decision process, which determines thebuyers

    response.

    https://en.wikipedia.org/wiki/Psychologyhttps://en.wikipedia.org/wiki/Sociologyhttps://en.wikipedia.org/wiki/Social_Anthropologyhttps://en.wikipedia.org/wiki/Anthropologyhttps://en.wikipedia.org/wiki/Economicshttps://en.wikipedia.org/wiki/Demographichttps://en.wikipedia.org/wiki/Consumerhttps://en.wikipedia.org/wiki/Relationship_marketinghttps://en.wikipedia.org/wiki/Social_choicehttps://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Social_choicehttps://en.wikipedia.org/wiki/Relationship_marketinghttps://en.wikipedia.org/wiki/Consumerhttps://en.wikipedia.org/wiki/Demographichttps://en.wikipedia.org/wiki/Economicshttps://en.wikipedia.org/wiki/Anthropologyhttps://en.wikipedia.org/wiki/Social_Anthropologyhttps://en.wikipedia.org/wiki/Sociologyhttps://en.wikipedia.org/wiki/Psychology
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    Environmental factors

    Marketing Stimuli Product Price Place Promotion

    Environmental Stimuli Economic Technological Political CulturalDemographic

    Buyer Characteristics Attitudes Motivation

    Perceptions Personality Lifestyle Knowledge

    Decision Process Problem recognition Information search

    Purchase decision Post-purchase behaviour

    Buyer's response Product choice Brand choice Dealer choicePurchase timing Purchase amount

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    The experts consider the buyers response as a result of aconscious,

    rational decision process, in which it is assumed that the buyerhas

    recognized the problem. However, in reality many decisions arenot made

    in awareness of a determined problem by the consumer.

    Information search

    Once the consumer has recognised a problem, they search forinformation

    on products and services that can solve that problem. Expertsexplain that

    consumers undertake both an internal (memory) and an externalsearch.

    Sources of information include personal sources and experience,and

    commercial and public sources.

    The relevant internal psychological process associated withinformation

    search is perception, which can be defined as "the process bywhich an

    individual receives, selects, organises, and interpretsinformation to create

    a meaningful picture of the world". Consumers tendency to searchfor

    information on goods and services makes it possible forresearchers to

    forecast the purchasing plans of consumers using briefdescriptions of the

    products of interest.

    The selective perception process can be divided into:-

    Selective exposure: consumers select which promotionalmessagesthey will expose themselves to.

    Selective attention: consumers select which promotionalmessagesthey will pay attention to.

    Selective comprehension: consumer interprets messages inlinewith their beliefs, attitudes, motives and experiences.

    Selective retention: consumers remember messages that aremoremeaningful or important to them.

    The implications of this process help to develop an effectivepromotional

    strategy, and suggest which sources of information are moreeffective for

    the brand.

    Evaluation of alternatives

    At this time the consumer compares the brands and products thatare intheir evoked set. The evoked set refers to the number ofalternatives that

    https://en.wikipedia.org/wiki/Perceptionhttps://en.wikipedia.org/wiki/Perception
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    are considered by consumers during the problem-solvingprocess.

    Sometimes also known as consideration, this set tends to besmall relative

    to the total number of options available. How can themarketing

    organisation increase the likelihood that their brand is part ofthe

    consumer's evoked set? Consumers evaluate alternatives in termsof thefunctional and psychological benefits that they offer. Themarketing

    organisation needs to understand what benefits consumers areseeking and

    therefore which attributes are most important in terms of makinga

    decision. It also needs to check other brands of thecustomers

    consideration set to prepare the right plan for its ownbrand.

    Purchase decision

    Once the alternatives have been evaluated, the consumer is readyto makea purchase decision. Sometimes purchase intention does notresult in an

    actual purchase. The marketing organisation must facilitate theconsumer

    to act on their purchase intention. The organisation can use avariety of

    techniques to achieve this. The provision of credit or paymentterms may

    encourage purchase, or a sales promotion such as the opportunityto

    receive a premium or enter a competition may provide anincentive to buy

    now. The relevant internal psychological process that isassociated with

    purchase decision is integration. Once the integration isachieved, the

    organisation can influence the purchase decisions much moreeasily.

    There are 5 stages of a consumer buying process. They are:

    a) The problem recognition stage, meaning the identificationofsomething a consumer needs.

    b)The search for information, which means you searchyourknowledge bases or external knowledge sources for informationon

    the product.

    c) The possibility of alternative options, meaning whether thereisanother better or cheaper product available.

    d)The choice to purchase the product.e) Then finally the actualpurchase of the product.

    This shows the complete process that a consumer will mostlikely, whether

    recognisably or not, go through when they go to buy aproduct.

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    Post purchase evaluation

    The experts suggested there should be a feedback loop, of thebuying

    behaviour. They further suggest the importance of the postpurchase

    evaluation and that it is the key because of its influences onfuturepurchase patte

    Other influences

    Consumer behaviour is influenced by internal conditions suchas

    Psychographics (lifestyle) Personality Motivation KnowledgeAttitudes Beliefs Feelings.

    Psychological factors include

    An individuals motivation Perception, Attitude and belief,

    Personal factors include

    Income level, Personality Age

    Occupation Lifestyle.

    Congruence between personality and the way a persuasive messageis

    framed (i.e., aligning the message framing with the recipientspersonality

    profile) may play an important role in ensuring the success ofthat

    message.

    In a recent experiment, five advertisem*nts (each designed totarget one of

    the five major trait domains of human personality) wereconstructed for asingle product. The results demonstrated thatadvertisem*nts were

    https://en.wikipedia.org/wiki/Psychographicshttps://en.wikipedia.org/wiki/Personalityhttps://en.wikipedia.org/wiki/Motivationhttps://en.wikipedia.org/wiki/Motivationhttps://en.wikipedia.org/wiki/Personalityhttps://en.wikipedia.org/wiki/Psychographics
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    evaluated more positively the more they covered withparticipants

    dispositional motives. Tailoring persuasive messages to thepersonality

    traits of the targeted audience can be an effective way ofenhancing the

    messages impact.

    Behaviour can also be affected by external influences, suchas

    culture sub-culture locality Royalty ethnicity Family socialclass past experience reference groups Lifestyle Market mixfactors.

    Definition of Buying Behaviour

    Buying Behaviour is the decision processes and acts of peopleinvolved inbuying and using products.

    Need to understand:

    Why consumers make the purchases that they make? What factorsinfluence consumer purchases? The changing factors in oursociety.

    Consumer Buying Behaviour refers to the buying behaviour of theultimateconsumer. A firm needs to analyze buying behaviour for:

    Buyers reactions to a firms marketing strategy has a greatimpact on thefirms success.

    The marketing concept stresses that a firm should create amarketing mixthat satisfies (gives utility to) customers, thereforeneed to analyze the what,

    where, when and how consumers buy.

    Marketers can better predict how consumers will respond tomarketingstrategies.

    https://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/Sub-culturehttps://en.wikipedia.org/wiki/Sub-culturehttps://en.wiktionary.org/wiki/localityhttps://en.wiktionary.org/wiki/localityhttps://en.wikipedia.org/wiki/Ethnicityhttps://en.wikipedia.org/wiki/Ethnicityhttps://en.wikipedia.org/wiki/Social_classhttps://en.wikipedia.org/wiki/Social_classhttps://en.wikipedia.org/wiki/Social_classhttps://en.wikipedia.org/wiki/Ethnicityhttps://en.wiktionary.org/wiki/localityhttps://en.wikipedia.org/wiki/Sub-culturehttps://en.wikipedia.org/wiki/Culture
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    Stages of the Consumer Buying Process

    Six Stages to the Consumer Buying Decision Process (Forcomplex

    decisions). Actual purchasing is only one stage of the process.Not all

    decision processes lead to a purchase. All consumer decisions donot alwaysinclude all 6 stages, determined by the degree ofcomplexity...discussed

    next.

    The 6 stages are:

    1.Problem Recogni tion(awareness of need)--difference betweenthe desiredstate and the actual condition. Deficit in assortment ofproducts. Hunger--

    Food. Hunger stimulates your need to eat.

    Can be stimulated by the marketer through productinformation--did notknow you were deficient? I.E., see a commercialfor a new pair of shoes,

    stimulates your recognition that you need a new pair ofshoes.

    2. I nformation search- This includes two typeso Internalsearch, memory.o External search if you need more information.Friends and relatives (word

    of mouth). Marketer dominated sources; comparison shopping;publicsources etc.

    A successful information search leaves a buyer with possiblealternatives,

    the evoked set.

    3.Evaluation of Alternatives-- Need to establish criteria forevaluationfeatures the buyer wants or does not want. Rank/weightalternatives or

    resume search.

    Youmay decide that you want to eat something spicy, Indian getshighest

    rank. If not satisfied with your choice then returns to thesearch phase. Can

    you think of another restaurant? Look in the yellow pages etc.Information

    from different sources may be treated differently. Marketers tryto

    influence by "framing" alternatives.

    4.Purchase decision-Choose buying alternative, includes product,package,store, method of purchase etc.

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    5.Purchase--May differ from decision, time lapse between 4 &5, productavailability.The purchase is done always in such a waythat it satisfies need

    of the consumer.

    6.Post-Purchase Evaluation--Outcome: Satisfaction orDissatisfaction thiscan be reduced by warranties, after salescommunication etc.

    After eating an Indian meal, may think that really you wanted aChinese

    meal instead.

    Types of Consumer Buying Behaviour

    Types of consumer buying behaviour are determined by:

    Level of Involvement in purchase decision. Importance andintensity of interest in a product in a particular situation.Buyers level of involvement determines why he/she is motivated toseek

    information about a certain products and brands but virtuallyignores others.

    Personal risk Social risk

    Economic risk

    The four type of consumer buying behaviour are:

    Routine Response/Programmed Behaviour--buying lowinvolvementfrequently purchased low cost items; need very littlesearch and decision

    effort; purchased almost automatically. Examples include softdrinks, snack

    foods, milk etc.

    L imi ted Decision Making--buying product occasionally. When youneed toobtain information about unfamiliar brand in a familiarproduct category,perhaps. Requires a moderate amount of time forinformation gathering.

    Examples include Clothes--know product class but not thebrand.

    Extensive Decision M aking--Complex high involvement,unfamiliar,expensive and/or infrequently bought products. Highdegree of

    economic/performance/psychological risk. Examples include cars,homes,

    computers, education. Spend a lot of time seeking informationand

    deciding.

    Information from the companies MM; friends and relatives, storepersonnel

    etc. Go through all six stages of the buying process.

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    Impulse buying, no conscious planning.The purchase of the sameproduct does not always elicit the same Buying

    Behaviour. Product can shift from one category to the next

    For example: Going out for dinner for one person may beextensivedecision making (for someone that does not go out often atall), but limited

    decision making for someone else. The reason for the dinner,whether it is

    an anniversary celebration, or a meal with a couple of friendswill also

    determine the extent of the decision making.

    Categories that Affect the Consumer Buying Decision Process

    A consumer, making a purchase decision will be affected by thefollowing

    three factors: Personal Psychological Social

    Personal

    Unique to a particular person. Demographic Factors. Sex, Race,Age etc.

    Who in the family is responsible for the decision making?

    Young people purchase things for different reasons than olderpeople.

    Psychological factors

    Psychological factors include:

    Motives--A motive is an internal energizing force that orients aperson's activities

    toward satisfying a need or achieving a goal.

    Actions are effected by a set of motives, not just one. Ifmarketers can

    identify motives then they can better develop a marketingmix.

    o Physiologicalo Safetyo Love and Belongingo Esteemo SelfActualization

    http://www.udel.edu/alex/chapt6.html#personalhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#personal
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    Need to determine what level of the hierarchy the consumers areapt to

    determine what motivates their purchases.

    Perception--

    What do you see?? Perception is the process of selecting,organizing and

    interpreting information inputs to produce meaning. IE we chosewhat info

    we pay attention to, organize it and interpret it.

    Information inputs are the sensations received through sight,taste, hearing,

    smell and touch.

    Selective Exposure-select inputs to be exposed to our awareness.More

    likely if it is linked to an event, satisfies current needs,intensity of inputchanges (sharp price drop).

    Selective Distortion-Changing/twisting current receivedinformation,

    inconsistent with beliefs.

    Selective Retention-Remember inputs that support beliefs,forgets those

    that don't.

    Ability and Knowledge--Need to understand individuals capacityto learn. Learning, changes in a

    person's behaviour caused by information and experience.Therefore to

    change consumers' behaviour about your product, need to givethem new

    information. When making buying decisions, buyers mustprocess

    information.

    Knowledge is the familiarity with the product and expertise.

    Inexperience buyers often use prices as an indicator of qualitymore than

    those who have knowledge of a product.

    Non-alcoholic Beer example: consumers chose the most expensivesix-

    pack, because they assume that the greater price indicatesgreater quality.

    Learningit is the process through which a relatively permanentchange in

    behaviour results from the consequences of past behaviour.

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    Attitudes--Knowledge and positive and negative feelings about anobject oractivity-maybe tangible or intangible, living or non-living, etc.

    Individual learns attitudes

    through experience and interaction with other people. Consumerattitudestoward a firm and its products greatly influence thesuccess or failure of the

    firm's marketing strategy.

    Personality--

    All the internal traits and behaviours that make a personunique, uniqueness

    arrives from a person's heredity and personal experience.Examples include:

    o Workaholicso Compulsivenesso Self confidenceo FriendlinessoAdaptabilityo Ambitiousnesso Dogmatismo AuthoritarianismoIntroversiono Extroversiono Aggressivenesso Competitiveness.

    Traits affect the way people behave. Marketers try to match thestore image

    to the perceived image of their customers.

    There is a weak association between personality and BuyingBehaviour; this

    may be due to unreliable measures. Nike ads. Consumers buyproducts thatare consistent with their self concept.

    Lifestyles--Recent US trends in lifestyles are a shift towardspersonal independence

    and individualism and a preference for a healthy, naturallifestyle.

    Lifestyles are the consistent patterns people follow in theirlives.

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    Social Factors

    Consumer wants, learning, motives etc. are influenced by opinionleaders,

    person's family, reference groups, social class and culture.

    Opinion leaders--Marketers try to attract opinion leaders...theyactually use (pay)

    spokespeople to market their products. Michael Jordon (Nike,McDonalds,

    Gatorade etc.)

    Roles and Family Influences--Role is the things you should dobased on the expectations of you from your

    position within a group. People have many roles.

    Husband, father, employees. Individuals role are continuing tochange

    therefore marketers must continue to update information.

    Family is the most basic group a person belongs to. Marketersmust

    understand:

    that many family decisions are made by the family unit consumerbehaviour starts in the family unit family roles and preferencesare the model for children's future family (can

    reject/alter/etc)

    family buying decisions are a mixture of family interactions andindividualdecision making

    family acts an interpreter of social and cultural values for theindividual.

    Reference Groups--Individual identifies with the group to theextent that he takes on many of thevalues, attitudes or behavioursof the group members.

    Families, friends, civic and professional organizations. Anygroup that has a

    positive or negative influence on apersons attitude andbehaviour .Membership

    group (belong to) Affinity marketing is focused on the desiresof consumers thatbelong to reference groups.

    Marketers get the groups to approve the product andcommunicatethat approval to its members. The degree to which a reference

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    group will affect a purchase decision depends on an individualssusceptibility toreference group influence and the strength ofhis/her involvement with the group.

    Social Class--An open group of individuals who have similarsocial rank. This depends uponfollowing criteria

    Occupation Education Income Wealth Race ethnic groupspossessions

    Social class determines to some extent, the types, quality, andquantity ofproducts that a person buys or uses.

    Lower class people tend to stay close to home when shopping; donot engage inmuch pre purchase information gathering. Storesproject definite class images.

    Family, reference groups and social classes are all socialinfluences on consumerbehaviour. All operate within a largerculture.

    Culture and Sub-culture--Culture refers to the set of values,ideas, and attitudes that are accepted by ahom*ogenous group ofpeople and transmitted to the next generation.

    Culture also determines what is acceptable with productadvertising. Culturedetermines what people wear, eat, reside andtravel.

    Cultural values in the US are good health, education,individualism and freedom.

    In American culture time scarcity is a growing problem. IEchange in meals. Bigimpact on international marketing.

    Different society, different levels of needs, differentculturalvalues.

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    Cul tur e can be divided into subcul tur es:

    Geographic regions Human characteristics such as age and ethnicbackground.

    Culture affects what people buy, how they buy and when theybuy.

    Let us go through the following example:

    Both Maria and Sandra went to the nearby shopping mall to buydresses forthemselves. The store manager showed them the bestdresses available with him.

    Maria immediately purchased two dresses but Sandra returned homeempty

    handed. The dresses were little too expensive for Sandra and shepreferred simpleand subtle designs as compared to designer wearsavailable at the store.

    In the above example Sandra and Maria had similar requirementsbut there was ahuge difference in their taste, mind set and abilityto spend.

    CONCLUSION TO TOPIC

    Consumer Behaviour is a branch which deals with the variousstages a consumergoes through before purchasing products orservices for his end use.

    Why do you think an individual buys a product?

    Need Social Status Gifting Purpose

    Why do you think an individual does not buy a product?

    No requirement Income/Budget/Financial constraints Taste

    When do you think consumers purchase products?

    Festive season Birthday Anniversary Marriage or other specialoccasions

    There are infact several factors which influence buying decisionof a consumer

    ranging from psychological, social, and economic and so on.

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    In a laymans language consumer behaviour deals with the buyingbehaviour ofindividuals.

    The main catalyst which triggers the buying decision of anindividual is need fora particular product/service.

    Consumers purchase products and services as and when needarises.

    According to Belch and Belch, whenever need arises; a consumersearches forseveral information which would help him in hispurchase.

    Following are the sources of information:

    Personal Sources Commercial Sources Public Sources PersonalExperience

    Perception also plays an important role in influencing thebuying decision ofconsumers.

    Buying decisions of consumers also depend on the followingfactors:

    Messages, advertisem*nts, promotional materials, a consumer goesthrough alsocalled selective exposure.

    Not all promotional materials and advertisem*nts excite aconsumer. A consumerdoes not pay attention to everything he sees.He is interested in only what he

    wants to see. Such behaviour is called selective attention.

    Consumer interpretation refers to how an individual perceives aparticularmessage.

    A consumer would certainly buy something which appeals him themost. Hewould remember the most relevant and meaningful messagealso called asselective retention. He would obviously not remembersomething which hasnothing to do with his need.

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    OBJECTIVES OF THE STUDY

    To critically evaluate and study the various aspects of on whichconsumerbehaviour depends.

    To study the perception of consumers regarding RALCO tyres

    To study the various ways in which company can deliver morevalue toits customer and dealers.

    To critically examine the awareness level and satisfaction levelin mindsof the consumer.

    To study other factor namely brand name ,brand loyalty ,etc onwhichconsumers purchasing d decision depends

    To study various factors on which consumer buying decisiondepends To analyse the areas on which consumer behaviour towardsthe company

    can be further improved

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    NEED OF STUDY

    The question arises that what was the need of studying the topicConsumer

    Behaviour Towards Ralson products. This is important becausethe

    management of a company needs to know what factors affect thepurchasing

    decision of a consumer. In todays world the consumer is theking. Only that

    company survives which makes products satisfying needs, wantsand desires of

    its consumers. So this topic becomes highly relevant in todayscompetitive

    world. The consumer these days has got a lot of alternativeswhich he will

    choose according to his needs.

    To understand what consumers want, what they value,

    whats their preference one must try to understand what consumersbuy, why

    they buy, from where they buy and when they buy. So todaysmarketing starts

    with having a look at consumer.

    To study what attitude does the consumer has towards

    your brand, what perception has a consumer got in his mindregarding your

    brand, etc you must do a real assessment of consumer behaviourtowards your

    brand. Also this will let you that whether your marketing mix isappropriate or

    needs to be changed according to consumer needs.

    Also many other factors like demographic ,societal ,

    Natural, psychological, personal, environmental, etc effect thebuying decision

    of the consumer which must be kept in mind to market the productcorrectly,

    otherwise it will lead to mis interpretation of companys marketsize. The

    company make a product keeping the needs and functionality ofthe user in

    mind. Any extras will increase the cost and will not be acceptedby consumer.

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    RESEARCH DESIGN

    Research Methodology is a method to solve the researchproblems

    systematically. It guides us in conducting the researchscientifically. It consists

    of different steps that the generally adopted by the researcherto study theresearch problem along with logic behind them.

    RESEARCH METHODOLOGY

    Research is defined as human activity based on intellectualapplication in the

    investigation of matter. The primary purpose for appliedresearch is discovering,

    interpreting, and the development of methods and systems for theadvancement

    of human knowledge on a wide variety of scientific matters ofour world and the

    universe.

    The term research is also used to describe an entire collectionof information

    about a particular subject. Necessity is the mother ofinvention

    Methodology is the method followed while conducting the study ona particular

    project. Through this methodology a systematic study isconducted on the basis

    of which the basis of a report is produced.

    It is a written game plan for conducting Research. Researchmethodology has

    many dimensions. It includes not only the research methods butalso considers the

    logic behind the methods used in the context of the study andexplains why only a

    particular method or technique has been used. It also helps tounderstand the

    assumptions underlying various techniques and by which they candecide thatcertain techniques will be applicable to certainproblems and other will not.

    Therefore in order to solve a research problem, it is necessaryto design a research

    methodology for the problem as the some may differ from problemto problem.

    Sampling Design: Sampling is a process of selecting a sufficientnumber of

    elements from the population. Convenience sampling is used inthis survey.

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    Sample size: The sample size refers to the number of individualsmallest

    entities which have been consulted to do this survey.

    Sample unit: One individual dealer is sample unit for thesurvey

    Research Design: Descriptive research design has been used withrigid set of

    steps followed.

    TOOLS OF DATA COLLECTION

    For this study, data has been collected from two sources:

    PRIMARY DATA are those which are collected a fresh and for thefirsttime. In this study, has been collected through personalcontact.

    Questionnaire was used to collect primary data from respondents.Survey

    participants were given a questionnaire asking them to fill 13questions,

    and also their suggestions and feedback was recorded. Theresponse

    formed the basis of analysis and conclusion to the entireresearch.

    SECONDARY DATA are those which have already been collectedbysomeone else. In this study, secondary source data has beencollected

    mostly from the company websites, company handouts and few bookstoo.

    LIMITATIONS OF THE STUDY

    Sources of

    data

    collection

    Primary

    Source

    Secondary

    Source

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    The time period of research was very short. Convenient samplingwas used as the mode of conducting the research,

    which could not fetch me with worthy respondents.

    Size of the research may not be substantial as sample size isonly 50 andit does not represent whole population.

    People may not have been true in answering various questions andmaybe biased to certain other questions.

    In a rapidly changing industry, analysis on one day or in onesegment canchange very quickly. The environmental changes are vitalto be

    considered in order to assimilate the findings.

    Some respondents were reluctant to divulge personalinformation,especially the gals, which can affect the validity ofall responses.

    The dealers may be biased in their opinion regarding thecompany.

    QUESTIONNAIRE

    Name of the dealer-

    Phone number-

    Address-

    1. What type of business are you in?a) Wholesaleb)Semiwholesalec) Retail

    2. Which companies do you deal with?a) RALCOb)Internationalc)

    Metro

    d) Bedrock

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    e) Hindustanf) Others

    3. For how many years have you been associated with RALCO?a)Less than five yearsb) More than five years

    4. Are the customers aware of RALCO products?a) Awareb) Notaware

    5. The consumer demand is driven bya) Brand loyaltyb) Bestqualityc) Best durabilityd) Most reasonably priced

    6. Customers buy RALCO because ofa) Priceb) Qualityc)Durabilityd) Brand name

    7. How satisfied is the customer with RALCO?a) Highlysatisfiedb) Moderately satisfiedc) Less satisfiedd) Notsatisfied

    8. Within how many days you get supplies against your order?a)0-3 daysb) 4-7 daysc) 7-10 daysd) 10 + days

    9. Are you satisfied with delivery of tyres?a) Yesb) No

    10.How regular is sales staff visit?a) Weeklyb) Fortnightlyc)Monthly

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    11.Are you satisfied with policies and schemes of company?a)Yesb) No

    12.Are you satisfied with replacement policy of the company?a)Yesb) No

    13.Does any improvement needs to be done on?a) Product qualityb)Pricing policyc) Promotiond) Replacement policye) None

    Any other suggestions-

    Comments-

    DETAILED REPORT OF LUDHIANA SURVEY

    The survey was conducted from 15-06-2013 to 25-06-2013 inLudhiana

    area under the guidance of Mr. Bhugra (Ludhiana Branch).Thedealers and

    retailers of Ralson India Ltd. were used as sample size. Thesample size is 28

    of which 12 are dealers and 16 are retailers.

    The survey was conducted in various areas of Ludhiana as listedbelow-

    Aarti Chowk Vishvakarma Chowk Ghumar Mandi Railway Station-ClockTower Domoria Bridge Civil Lines Chander Nagar Link road

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    Sampling universe- All the dealers and retailers of RALCO inLudhiana

    area can be considered as sampling universe for this survey

    Sampling unit- The smallest possible individual respondentrefers to thesampling unit .Here a single dealer is samplingunit

    Sampling Design-Sampling is a process of selecting a sufficientnumber

    of elements from the population. Convenience sampling is used inthis

    survey

    Sampling technique- Convenience sampling technique has beenused.

    Sample size-28 (12 Dealers, 16 Retailers)

    Analysis of survey

    1.What type of business are you in?

    d)Wholesalee)Semiwholesale

    f) RetailObservation and analysis - The survey was conductedafter getting the list of

    dealers from the Ludhiana Branch. The dealers also act as semiwhole sellerssometimes. They also do retail .Also many retailers ofRALCO tyres have been

    covered in various parts of Ludhiana.

    2.Which companies do you deal with?

    g)RALCOh)I nternationali)Metroj)Bedrockk)Hindustan

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    l )OthersObservation and analysis - RALCO, BEDROCK ,METROand

    INTERNATIONAL were found to be available with almost everydealer and

    retailer. Only 2 dealers were exclusive RALCO dealers

    It was also noted that although low in quality other tyres oflower

    price range continue to thrive well in the market and have a bigmarket share.

    They were available with almost very dealer and retailer .Someof them are

    Ganga,Bajaj,Youngstar,Ramson,Rambo,PunjabiTadka,Montex,villo,Ramco,

    Etc.

    3.For how many years have you been associated with RALCO?

    c)Less than f ive yearsd)More than fi ve years

    Observation and analysis - to this question there was auniversal answer those

    more than 5 years. Since RALCO is a very old brad most ofdealers and retailers

    have been using it since decades. Some dealers said that RALCOis the MRF

    of cycle tyre industry. This shows that company has a good brandname which

    continues to be its strong point, over the years.

    4.Are the customers aware of RALCO products?

    c)Awared)Not aware

    Observation and analysis-Most of the dealers and retailersresponded that

    customer is aware of RALCO. They said a consumer demands forRALCO tyre

    most of the time. Sometimes consumer goes for other tyre becausethe price of

    RALCO tyres is high.

    5.The consumer demand is dr iven by

    e)Brand loyaltyf)Best quali tyg)Best durabil ity

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    h)Most reasonably pri cedObservation and analysisTo thisquestion there was difference of opinion.

    Most of the dealers and retailers said that the consumer goesfor best quality no

    matter what price is. Also the price sensitive consumer goes formost reasonably

    priced.

    6.Customers buy RALCO because of

    e)Pricef)Qualityg)Durabilityh)Brand name

    Observation and analysis- To this question there was a commonanswer that

    quality of RALCO tyres is the main reason. The brand name ofRALCO is very

    good.

    7.How satisfied is the customer with RALCO?

    e)H ighly satisfi edf)Moderately satisf iedg)Less satisfiedh)Not satisfied

    Observation and analysis-To this question most of dealers andretailers said

    that consumer is highly satisfied. Some of them said thatconsumer is

    moderately satisfied. The life cycle of tyre is 12 months or 18months to the

    maximum.

    8.With in how many days you get suppl ies against yourorder?

    e)0-3 daysf)4-7 daysg)7-10 daysh)10 + days

    Observation and analysis- The supplies are very fast of RALCOtyres. Most of

    the dealers order supplies in the morning and get it by theevening the same day.

    If the specific tyre is not in stock it takes 10+ days to getsupplies. This is an

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    area where dealers say that company can improve upon bymaintaining a fixed

    inventory of popular tyres so that there is no supply lag

    The retailers purchase tyres from dealers of the

    company which is nearest to them. They purchase tyres byhand.

    9Are you satisfied with delivery of tyres?

    c)Yesd)No

    Observation and analysisAlmost everyone is satisfied withdelivery of tyres

    leaving one or two dealers who think company can improve in thissegment.

    10.How regular is sales staff visi t?

    d)Weeklye)Fortnightlyf) Monthly

    Observation and analysis- The sales staff visits the dealersregularly. The

    dealer orders are mostly done on phone these days .The Salesstaff visits the

    dealers regularly located in its vicinity i.e. vishvakarma chowkarea. Thedealers are satisfied with the sales staff visit. Thepeople of sales dept maintain

    healthy relation with dealers.

    11Are you satisf ied with pol icies and schemes of company?

    c)Yesd)No

    Observation and analysisthe dealers have different opinion tothis question.

    While some dealers said they are satisfied others have repliedthat they are not

    satisfied. They have given reasons for this like the company nowissues very

    less schemes, RALCO gives less schemes compared to othercompanies. They

    feel that nowa-days company favours the dealer less. They saidthe company

    should give more schemes to the dealers.

    The policies of company are satisfactory.

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    12Are you satisf ied with replacement policy of the company?

    c)Yesd)No

    Observation and analysis the dealers and retailers are satisfiedon this point.

    The product of company is very good in quality and there isseldom any need to

    get replacement as the product delivers what it promises todeliver.

    They said that the stringent quality control helps inmaintaining quality of the

    product

    The dealers feel that replacement process can be made fast.

    13.Does any improvement need to be done on?

    f)Product quali tyg)Pricing policyh)Promotioni)Replacementpolicy

    j) NoneObservation and analysis- the retailers think that noimprovement needs to be

    made and they are highly satisfied in all aspects. According tothem RALCO is

    the best quality tyre and its liked by customers.

    However the dealers are having a different

    viewpoint. They think that pricing policy and replacement policycan be

    improved. The price of RALCO is high and the customer goes forother brands

    because of this. The dealer margin is very less as compared toother companies

    thus dealer try selling other brands to earn greater profits.Some dealers feel thatcompany keeps a greater chunk of profit toitself and decreases profit margin for

    dealer. According to them if the company decreases price thesales will

    increase. Also more schemes should be made for dealers. Thereplacement

    though given by the company needs to be made speedy.

    Any other suggestions-Following are suggestions given by dealerof

    Ludhiana area:-

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    a) More schemes should be made by the company.b) Margin is lessfor dealers which company should pay attention to.c) Price shouldbe lowered to compete with other companies.d) Replacement processshould be made faster.e) Company should make consumer orientedschemes.f) Rough pad, writing material and gifts should be providedby company.

    REPORT OF AMBALA BRANCH SURVEY

    This survey was conducted by Adesh Kalia in partial fulfilmentof therequirements for the award of degree of M.B.A. The survey wasconducted

    from 1-07-2013 to 4-07-2013 in Haryana under the guidance of Mr.Jaswinder

    (Ambala Branch).The dealers and retailers of Ralson India Ltd.were used as

    sample size. The sample size is 25 of which 18 are dealers and3ar e retailers.

    The survey was conducted in various areas of Ambala branch aslisted

    below-

    Ambala city Ambala cantonment Yamunagar Kurukshetra PipliKarnal

    Sampling universe- All the dealers and retailers of RALCO inHaryanaarea can be considered as sampling universe for thissurvey

    Sampling unit- The smallest possible individual respondentrefers to

    the sampling unit .Here a single dealer is sampling unit.

    Sampling Design: Sampling is a process of selecting asufficient

    number of elements from the population. Convenience sampling isused

    in this survey

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    Sampling technique- Convenience sampling technique has beenused.

    Sample size-21 (18 Dealers, 3 Retailers)

    Analysis of survey

    1.What type of business are youin?a)Wholesaleb)Semiwholesalec)Retail

    Observation and analysis - The survey was conducted aftergetting the list of

    dealers from the Ambala Branch. The dealers also act as semidealers

    sometimes. They also do retail. Also some retailers have beencovered in

    various parts of Haryana.

    2.Which companies do you deal with?a)RALCOb)Internationalc)Metrod)Bedrocke)Hindustanf)Others

    Observation and analysis - RALCO, INTERNATIONAL andHINDUSTANwere found to be available with almost every dealer andretailer. METRO was

    available with some dealers. It is also observation thatHindustan tyre is more

    popular in Haryana region than in Ludhiana because most of thedealers had

    Hindustan tyres in Haryana.

    It was also noted that although low in quality other tyres oflower

    price range continue to thrive well in the market and have a bigmarket share.

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    They were available with almost very dealer and retailer .Someof them are

    Ganga, Bajaj, Young star, Ramson, Rambo, PunjabiTadka, Montex,vilo,

    Ramco,

    Etc.

    3.For how many years have you been associated with RALCO?a)Lessthan f ive yearsb)More than fi ve years

    Observation and analysis - To this question there was auniversal answer those

    more than 5 years. Since RALCO is a very old brad most ofdealers and retailers

    have been using it since decades. Some dealers said that RALCOis the MRF

    of cycle tyre industry. This shows that company has a good brandname which

    continues to be its strong point, over the years.

    4.Are the customers aware of RALCO products?a)Awareb)Notaware

    Observation and analysis-Most of the dealers and retailersresponded that

    customer is aware of RALCO. They said a consumer demands forRALCO tyre

    most of the time. Sometimes consumer goes for other tyre becausethe price of

    RALCO tyres is high.

    The dealers also recommend the use of RALCO tyres

    to their customer because of the quality of RALCO tyres.

    5.The consumer demand is driven bya)Brand loyaltyb)Best qualityc)Best durabil ityd)Most reasonably pri ced

    Observation and analysisTo this question there was difference ofopinion.

    Most of the dealers and retailers said that the consumer goesfor best quality no

    matter what price is. Also the price sensitive consumer goes formost reasonably

    priced. Some dealers said that they have every type of customerthe customer

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    who demands quality and the customer who demands most reasonablypriced

    tyres.

    6.Customers buy RALCO becauseofa)Priceb)Qualityc)Durabilityd)Brand name

    Observation and analysis- To this question the most commonanswer is that

    quality of RALCO tyres is the main reason. But some otherdealers said that the

    brand name of RALCO is very good and people buy RALCO because ofthat.

    RALCO tyres have built a good reputation in the market over theyears.

    7.How satisfied is the customer with RALCO?a)H ighly satisfiedb)Moderately satisfiedc)Less satisf iedd)Not satisfied

    Observation and analysis-To this question most of dealers andretailers said

    that consumer is highly satisfied. The life cycle of tyre is 12months or 18

    months to the maximum.

    8.Within how many days you get supplies against your order?a)0-3daysb)4-7 daysc)7-10 daysd)10 + days

    Observation and analysis- The supplies are very fast of RALCOtyres. Most of

    the dealers get supplies within 2 days. If the specific tyre isnot in stock it takes

    10+ days to get supplies. This is an area where dealers say thatcompany can

    improve upon by maintaining a fixed inventory of popular tyresso that there is

    no supply lag.

    One dealer of Kurukshetra, M/s Prabhat Cycle

    Works faced supply delays for almost 6 months. The dealerordered tyres and

    tubes of a specific size .He got the tyres but the tubes werenot delivered to him

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    of that size. He called the Ambala branch office several timesbut never got

    supplies .He called the Mr. Karanjit sir at Ludhiana and afterthat he got

    supplies.This process took 6 months. The dealer has advised thatthe company

    must send the tyres and tubes of same size at the same times sothat they can be

    fitted in cycle together without any delays.

    9.Are you satisfied with del ivery of tyres?a)Yesb)No

    Observation and analysisAlmost everyone is satisfied withdelivery of tyres

    leaving one or two dealers who think company can improve in thissegment.

    10.How regular is sales staffvisit?a)Weeklyb)Fortnightlyc)Monthly

    Observation and analysis- The sales staff visits the dealersregularly. The

    dealer orders are mostly done on phone these days .Most of thedealers said that

    the Sales staff person visits the dealers within a week.

    11.Are you satisf ied with policies and schemes ofcompany?a)Yesb)No

    Observation and analysisThe dealers have different opinion tothis question.

    While some dealers said they are satisfied others have repliedthat they are not

    satisfied. They have given reasons for

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