In Tor Duct Ion

Market study of KRS Customer Satisfaction
1.1GENARAL INTORDUCTION
Transportation has assumed much significance in the present world. Transportation plays
an important role in the Indian economy. The economic life of the people depends upon
transportation service. Transportation is the lifeline of all economic and development
activities. the transport industries which undertake nothing more then the more
movement of person and things from one place to another has constituted one of the most
important activities of humankind. The road transportation is highly significant far the
defense of the country.
As a result of industrial revolution many industries come to existence and production was
carried out on a large scale. Then manufacturers faced the problem of transportation their
products to their ultimate consumers. So they began to depend on transport agencies or
parcel services to transport their goods. The Transportation is the key factor for industrial
development. The duty of transportation agencies will be liable far all losses or damages
in transit if it is out of their negligence
Customer satisfaction begins with a difficult face it starts with a commitment to deliver
the result to each customer which is also a concern of the retailers. Hence for a service, in
order to satisfy its customers, it is highly important to satisfy its retailers, as they are the
direct customers of them. Establishing satisfaction as the ultimate goal is like the other
ultimate goal of business pursuit of higher profit or shareholders wealth. Perfect
customer service or satisfaction is one that meets the combined need satisfaction is a
systemized service that involves the entire organization. But many organizations have yet
to develop this kind of awareness of customer satisfaction strategy.
Higher customer satisfaction comes from providing effective services. But, the service
we offer them is an ongoing practice which does not ends anywhere. It means being
efficient, reliable, curing and professional on every occasions.
Master of Business Administration 1 Kmct School of Business

1.2 SCOPE OF THE STUDY
The project entitled to “CUSTOMER SATISFACTION WITH REFERENCE TO

SERVICE MARKETING” was conducted to find out the customer satisfaction and also
to make suggestions for improving service. Field survey was conducted to collect
primary data from the respondents by means of personnel interview through structured
questionnaire.
“Systematic random sampling” technique was
Used by researcher to collect the data from the customers.
Out of 400 populations 62 samples are taken by using systematic random sapling. Data
collected were edited. Classified, and inference were drown.
From the observation and findings and recommendations have been submitted to the
management and it is hope that management will took in to these recommendations and
try to implement them
The study analyses the various problems associated with the parcel services and making
a detailed market study using systematic questionnaire and schedules which are to be
easily understandable to the respondents and also among judgment to these variables. On
the basis of these findings necessary suggestions are submitted to the company

1.3 OBJECTIVES OF THE STUDY
1. To find out the customer satisfaction of the following aspects.

(a) Freight rate
(b) Speed
(c) Timeliness
(d) Credit facility
(e) Storage facility
(f) Area network
(g) Accuracy of Delivery system
(h) Reliability
(i) Quality of service
(j) Transportation
2. To find out what are the factors influencing selection of parcel
3. To find out the effectiveness of advertisement
4. Find out the customer problem about damages
5. To find out the duration of settlement of claim
6. To find out the reason for use of other than KRS
7. To offer suggestion for improvement of KRS service

1.4 REASEARCH METHODOLOGY
Research in an investigation is to discover new facts. Woody defines research as a

comprising to redefining problems formulating hypothesis (or) suggested solution,
collecting, organizing, and researching conclusion
The American marketing association defines “marketing as systematic gathering,

recording, and analysis of data about problem relating to the marketing of goods and
services
1.4.1 STATEMENT OF THE PROBLEM:
The study analyses customer satisfaction with reference to service marketing of the
company. A customer should be satisfied in all aspects to the service moving up, thereby
increasing the profitability of the company. So the study of customer satisfaction is
important.
1.4.2 Research design
“A research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the research purpose with economy in
procedure”
Research design is purely and simply the framework (or) plans for a study that guide the
collection and analysis of data. The function of a research design is to ensure that the
required data are accurately and economically.
1.4.3 Sources and collection of data
There are two major data are extremely valuable for research, they are
1. Primary data
2. Secondary data

PRIMARY DATA
The primary data was collected by survey conducted using a structured questionnaire in
Calicut district of Kerala.
SECONDARY DATA
The secondary data is collected from

1. The company manuals
2. Web site
3. Magazines
1.4.4 QUESTIONNAIRE
The term questionnaire refers to a self-administered process where by the respondent

himself reads the question and records the answer without the assistance of an
interviewer. The questionnaire are presented exactly the same wording and in the same
order to the entire respondent
1.4.5 SAMPLING
Sampling defined as the selection to some past an aggregate or totalize on the basis of
which a judgment or inference about the aggregate or totally is made.
a) SAMPLING UNITS
For survey, one district was chosen
b) SAPLING SIZE
The target size greatly depends upon the type of the study under taken and size of the
population

═ (1.96).95×.05×400
(.05)(399) + (1.96) × .95 ×.05
═ 3.8416×.95×.05×400
.9975+182476
═ 72.9904
1.779976
═ 61.85 (62)
Where,
n = sample size required
P% = it is the proportions of respondents, who answered in a way as to make the research
successful in the pilot survey.
q% = 100 – p%
z = the value corresponding to the level of confidence
e = error value.
The sample frame for my study is 400. For conducting a pilot study I have taken a
size of 20, out of which I got the response of 95% belonging to specific category and rest
into a non specific category. So I have taken p as 95% and q as 5%. The level of
confidence taken is 95%, so the Z value is 1.96 and e value should be 5%, i.e., 0.05.
By applying the value in equation we get, the sample size as 62

So the sample size taken is 62.

1.4.6 PILOT STUDY AND PRE TESTING:
Before conducting the final survey sample questions are issued to 20

customers/respondents in order to correct the discrepancies.
1.4.7 TOOLS USED FOR ANALYSIS OF DATA:
Percentage analysis methods are used of the analysis of data. Suitable tables and charts
are used for easy interpretation.
1.4.8 STATISTICAL TEST USED:
Chi square test is used for this study. It is one of the important tests used to test the
hypothesis. It is non parametric test. It is frequently used for testing hypothesis
concerning the difference between a set of observed frequencies of a sample and
corresponding set of expected or theoretical frequencies
Formula for computing the chi square,
Where,
O = observed frequency
E = expected frequency.
The difference of expected frequency from the observed frequency is calculated initially.
Then square value of each of the difference is calculated. From this calculated square
value corresponding expected value is divided. Finally the sum of these values is
calculated and is compared with the table value of chi-square.

The calculated value of the chi square is compared with the table value of the chi square
for given degrees of freedom at specified level of significance. If calculated value of chi
square is grater than the table value, the null hypothesis is rejected, in other words, the
difference between theory and observation is considered to be significant. On the other
hand the calculated value of the chi square is less then the table value, the difference
between theory and observation is not considered as significant.
1.4.9 HYPOTHESIS:
Hypothesis is considered as the most important instrument in research. A hypothesis is an

assumption or some assumption to be proved or disproved. Hypothesis can also divided
as
I) Null Hypothesis (H0)
ii) Alternative Hypothesis (H1)
I) Null Hypothesis (H0):
Null hypothesis is state that no difference between a population parameter and sample
statistic.
ii) Alternative Hypothesis (H1):
When the null hypothesis is rejected then we are accepting the alternative hypothesis.
The alternative hypothesis is the logical opposite of the null hypothesis.
In this study,
Null Hypothesis (H0): customer satisfaction is highly independent on service marketing
Alternative Hypothesis (H1): customer satisfaction is dependent on service marketing

1.5 LIMITATION OF THE STUDY
1. The study was confined only Calicut district
2. Some of the respondents interviewed either were reluctant or negative in their

approach, most of them were busy
3. In some shops, the owner were not presents at the time of survey
4. Consumer response may be biased.

INDUSTRY PROFILE

2.1 INDUSTRY PROFILE
Road transport is comfortable to the arterial system of the human body. Just as
the arteries allow pure blood to be pumped to every part of the body enabling to be alive,
the
Road transportation facility of country enables vital good to be carried to every nook and
corner of phonation economy enabling it to the function economically.
Freight transportation in India, the main artery of India’s trade and commerce,
has been mainly dependent on railways and roadways , who carry almost the entire
fright cargo on account of the large continental distances spanned by them. There has
been heavy investment in the transport sector since independence and the progress has
been significant. But the task is so gigantic that would be requiring many years and large
doses of investment to bring about the desired improvement in the country’s transport
system.
The bottleneck, especially in railways, road and ports pose a threat to economic growth.
In the road segment, Highway network needs expansion to ensure smooth movement of
the goods and people. The pollution caused by the vehicle, especially in the large cities,
is another problem that needs to be addressed. The entire private groups in to transport
sector is expected to improve things. But the role of government will remain paramount.
Although India has a well-developed rail network and reasonable good water
transport network. Road transport still accounts far a major share in the over all
movement of goods. The road transport has improved its share in the overall movement
of goods\ traffic expressed in total ton kilometer from just 12% in five year 1951 to 62%
in five year 1998. Since five year 1990 the proportion has increased from 53% to the
present approximate 65%.with the changing economic scenario, the factor such as
globalization of markets. International economic integration, removal of barriers to the
business and trade and increased competition has enhanced the need for transportation
today it is one of the most important infrastructure requirement, which is essential for the
expansion of opportunities and plays an important role in making or breaking the
competitive positioning.

SIGINIFICANCE OF TRANSPOTATION
Effective transportation is indispensable to economic progress is Mining, manufacturing,

trade banking and agricultural are also necessary. But these activities like many other
depend upon transportation. Without adequate facilities for moving goods and people
economic and social activities can be carried on in a limited way only.
Using a mobility index that combines available data on transport facilities and movement
of passengers and freight, The countries with low per capita had a mobility index and
passenger transport in single digit , where as index was significantly high in countries
with high per capita income.
2.3 ECONOIMIC FUCTION OF TRANSPOTATION:

Transportation is an economic function that is to say. It serves along with other
productive function in the production of goods and services in the economy.
1. Creation utility: production has been defined as the creation of utility that is
quality of usefulness .transportation creates the utility of place, and to also degree, that of
time.
2. as a cost of production: since is part of production, an increase in its efficiency
helps in reducing the cost of procuring goods n and thus reduces theirs prices. Cheaper
transportation has both direct and indirect effect on cost of production. directly,
reduction in transport rates laid to overall lower production costs by lessening the outlays
for assemblies raw materials and shipping finished products by reducing the expense
of travel indirectly ,cheaper transportation tend towards lower cost of production by
making possible more efficient extraction and manufacturing through the division of
labor and large scale production
3. Specialization and division of labor: Transportation enables society to enjoy

advantages of specialization of resources. Add the benefits of labor by making it possible
for products to be brought great distance, thus avoiding the necessary for local
production for all conceivable commodities of need. Each economic region can thus
concentrate upon the goods and services for which it is best adapted either through
natural resources endowment or through historical development. It thus leads to a better

economic use of available resources.
4. Large scale marketing: closing associated with the foregoing is the fact that
transportation helps to expand the size of market .no moderns large scale producer could
operate if will not to serve only local market. Obliviously large scale production is
possible when the market extends to the whole nation and in a few to the whole world.
5. Consumption of wealth: transportation is also related to consumption of wealth. It
increases the quality and variety of consumable goods. There by stimulating wants. There
is more production because of the cost of production brought about by transportation’s
greater variety decreases in the cost of production brought about by transportation. A
greater variety occurs because transportation enables a community to enjoy even goods
that could not be produced in the immediately vicinity
2.4 MAIN PLAYERS AND ASSOCIATED VALUES
The above table helps identify the main players in the market and values of each pf them
to maximize
Achieve while making transport decision
PLAYERS ASSOCIAED VALUES
1. CONSIGNOR a) minimum transit cost (Inclusive insurance)

b) Minimum packaging cost
c) Secure and safety delivery of cargo
d) Shorter delivery time
e) No unnecessary documentation
f) Single agency one window service
h) Fast realization of dues

2. CONSIGNEE a) minimum transit costs

b) No damages to goods
c) Timely delivery
d) Lower inventory
e) No allowance
f) No collection problems
h) All documentation complete
3. CARRIERS a) maximum traffic/

b) Seedy turn around of vehicle
c) Maximum productivity
d) Minimum operational expenses
e) Minimum claim damages
4 TERMINALS a) less congestion

b) Maximum out put & productivity
c) Smooth operation
d) Lowest cost of operation
e) Minimum detentions to cargo
f) Low liabilities of claim
5. CARGO MANEGEMENT a) provide one window integrated service

b) Direct door to door consist
c) Minimum costs
d) Minimum loss
e) Best co-ordination of activities
6. FINANCIAL INSTISTUTION a) minimum risk

b) Better revenue
c) Increased traffic

7. INSURENCE COMPANIES a) lower claim

b) Lower revenue
c) Ease in operation
2.5 Present scenario
Today’s business big or small, domestic or global the value of time is clearly
immense. Business today is focusing on how it can deliver goods and pick up, timely
delivery, timely information and availability of their infrastructural facilities for
efficient handling of cargo transportation industry in today’s rapidly changing
environment. Hence transportation like any other industry is also largely influenced by
information and communication technologies with the focus being on knowledge of
customer and value added services. It was this need, which stimulated the growth of the
express cargo industry worldwide and making it e-enabled

COMPANY PROFILE

2.2 COMPANY PROFILE

2.2.1 ABOUT THE COMPANY
The KERALA ROAD WAYS LIMITED known as KRS is a multi crore companies
based in Calicut with over 450 branches. They have a tong work force of over 2500
people across the nation engaged primarily in the transportation industry. They have
good relation, ranging from small store keepers to corporate giants like TELCO, TISCO,
BIRLA, BAJAJ, INDUSTHA LIVER LIMTED, LAKME LIVER, AMUL, WIPRO,
BERGER PAINTS, JOHNSON&JOHNSON, BOMBAY DYNING & MFD LTD,
PERFETIA LTD, and TATA CHEMICALSLTD ASIAN PAINTS. ETC.
Today they handle over 4500 tones cargo every day, in almost 500 own and
attached trucks, which operate in corner o0f the country,. An efficient computerized
freight management system monitors the entire operations. They have one of the most
efficient computerized systems in the country
2.2.2PROFILE
Kerala road ways limited is engaged in the transportation if goods and parcel. The origin
of KRS can be traced back to 1962, started with three branches as a proprietary concern
by Mr. V.K Moidu Hajee. The initial branches were at madras, Calicut & Ernakulum the
beginning stage.
The major clients where retail traders of Calicut and Ernakulum
The prevailing practice was transshipments of goods Coimbatore enroots to respective
destinations.
The main policy decisions are taken by board of director comprising of Mr.Moidu Hajee,
Director C.P.Kunhi Muhammad.
2.2.3 Service profile

Kerala road ways limited is is service business enterprise. It engaged in goods
transportation industry, it is the number one logistics service. it deals with several other
kind of transportation facilities.

However, the following are the main services where KRS deals with
1. Parcel service: The main service of KRS limited is parcel. Parcel from one
place to another is transported by KRS at a reasonable tare. The company uses own
and hired trucks for this purpose. The parcels are delivered for both retail and
wholesale customers.
2. Freight movement: It is another significant service of KRS ltd. Freight is

transported from any place to any part of India. This service is heavy duty payable
when comparing with other. At most care taken by the company for the movement of
freight, mainly cement, food grains, electronic items, consumer etc. are including in
this section
3. Warehouse: The most important feature of Kerala road ways limited is

warehousing. Every branch of the company is providing warehousing facility. It
gives full security to the goods. No additional charges levied by the company for
ware housing.
4. Supply chain management: It is the integration of key business process from

end through original suppliers that provides product. Service and information that add
value for customer stake holders. There is a deal of confusion regarding exactly what
SCM involves. In fact, most people using the name SCM as a synonym for logistics
that includes customer and suppliers. Others view SCM as the name for purchasing
chains. Valuable recourses are when supply chains are not integrated, appropriated
streamlined, and managed. KRS provides supply chain management facility also or
operation and logistics. However successful SCM cross functional integration of key
business process within the firm and across the net work of firms that comprise the
supply chain.
5. Jit supply chain: It refers in time supply planning. Just in time is a structural
approach in a manufacturing organization focused on improving timeliness, quality,
productivity and flexibility utilizing various methods of work simplification. KRS
limited provides fast services then any other companies.

6. Client management: In case service sector industries, client management is of

pivotal importance. Hence in this regard, KRS has taken the following measures for
maintain a good customer base.
For regular customer these are of the service available:
 KRS has extended a facility to settle their freight bills on monthly basis
 Regular customer are billed at discount rates
 Door to door delivery of goods
 No additional freight for transfer goods from delivery point to specific
sites
 No demurrage charged
 Demurrage n is normally charged for delay in removing the goods from
the god down. Up to 15 days no additional cargoes is levied but in case
of regular clients extra payments is not to be made even if there is delay
in taking possession of goods
7. C&F OPERATION
Clearing and is done by KRS ltd for the following clients
1. Gujarth Co-operative limited
2. Hindutan lever limited
3. Godrej appliances limited
4. Wipro limited
5. Hawkins cookers limited
6. ici paints(i) limited
7. Aavian milk products
8. Havells limited
9. Crabtree limited

2.2.4 Mission
An effective mission is a fundamental element of a service firms marketing

strategy. Following are the company effective service mission statement
“We believe in providing safe and safety transportation of precious consignment of

our valid customers through committed hardworking and loyal workforce in our
continuous Endeavour to achieve total satisfaction our value customers”
Vision
By the year 2001, Kerala road ways ltd visualize to cover the entire nation with a
spread over 500 branches duly computerizing 250 branches as a whole, the company will
be completing 80% of the goods movement fully monitored by computers. By virtue of
increasing the movement of the trucks the limiting the transshipment yards the company
could move goods from point too point safety and swiftly
2.2.4 Present scenario of KRS
KRS has registered phenomenal growth in the past two decades. The company has
transshipment offices situated in different places to cater to the branches spread all over t
India the major outlets are in Kerala. Kerala being a consumer market, Consumer and
consumer durable goods have to come from Ahmadabad, Mumbai, Calcutta, Delhi, and
Madras. The firm own nearly 200 trucks and 800 trucks are taken on contrast basis. The
company is utilizing its own trucks for the distribution of parcel from the transshipment
center to nearly station, while trucks on hire are engaged in the transportation of goods
between transshipment major transshipment centers and metropolitan cities.

2.2.5 HIGHLIGHTS:
1.500 branches in India of which 203 are Kerala

2. Every 15 KMs stretch in Kerala (NH), has KRS branch (average)
3. Workforce of over 6000 people
4. Handles over 3700 tones of cargo every day
5. Fleet of above 800 trucks (own & attached)
6. Computerized freight management system to monitor operation
7. First computerized private sector transport company in India approved by the Indian
bank association Operation are carried out in the organized transport sector while 52%
market share enjoyed in the organized transport industry in Kerala
2.2.6 MANEGIRIAL ACTIVITIES IN KRS
(1) FRIEGHT MANAGEMENT SYSTEM

The concern has brought booking and transshipment activities under freight
management system.
• BOOKING. Booking is the first stage in the transportation of goods. It is t

done through a separate computerized customer. The staff at the counter does the data
entry operation. There is a specific format of the designed bill/receipt, when the clerk
selecting the item, a blank format of the goods consignment (GC) note displayed on the
monitor. Data of the booking and destination has to be filled supplementing the
necessary data.
The booking clerk prepares the goods consignment note in triplicate.
 Consigner copy (Black): give to the customer.
 Consignee copy (red): also given the customer, later he sends it to the consignee.
He has to produce this copy while taking delivery of the goods at delivery point.
 Lorry copy (blue): this retained at the branch. This is handed over to the vehicle
driver while dispatching the goods to the respective destination.

• TRANSIPPMENT OF GOODS: Parcels are temporarily kept at a

transshipment centre. Parcel in transit to various places are brought to transshipment
centre. Parcel are then grouped according to the destination
• Transshipment entitles a stipulated procedure
 Goods consignment notes are sent along with individual parcel.
 A separate VA sheet is prepared for all parcel sent by a particular
carrier.
• vehicle management (VA)

 when the appropriate item is selected VA is displayed
 When we type the goods consignment number in the VA sheet all other
particulars connected there to t will be automatically displayed.
 Thus all consignment sends together will have a separate VA sheet. This
will show the details such as parcel description, freight charge etc.
 For the purpose of inspection this will be much help. Dispatch clerk can
verify whether all the consignments as stated in the VA sheets are brought
to the station
 Claim for loss & damages can be verified with VA., if some goods are
damaged we can cross check with the details such as how many cartons
were sent, its description etc.
2. DELIVERY MANAGEMENT SYSTOM:

DMS forms part of the database management system, which covers all activities
connected with delivery of goods. Various statements can be generated through the
system; which is placed under the control of separate personnel. An in- depth analysis
reveals the following characteristics.
• Issue of cash receipts: In case of receipts to pay booking the cost
transportation is meant by the consignee at the point of delivery.
• Cash receipts are generated in duplicated the original copy is given to the party
while t returning the copy at the delivery Centre, a summery sheet regarding the daily
cash receipts can be prepared on a daily basis with the aid of DMF

• Daily unloading report: This report is generated on the a daily basis, which
shows details regarding number of consignment arrived at the station
• Godown stock: Goods transferred from one location are temporarily kept in a
particular center before being sent to the original destination, so that different
consignment to a specific centre can be transferred in bulk.
3. ANCILLARY OPERATION
Godown facilities are imperative for efficient discharge all function. In case of parcel
industry, it is even more important; Goods entering the godown can be:
• Goods for transshipment
• Goods to be delivered to the consignees.
• .goods sends to t other branches.
Loading sheet is prepared at the time of loading parcel in to carriers. Unloading sheet is
prepared at the time unloading the consignment.
4. CLIENT MANAGEMENT
In case of industries in the service sector, client management is most important. KRS also
has an effective mechanism for the client management. It has taken the following
measures for maintaining a good customer base, for on a regular customer
• It has extended a facility to settle their freight bills on a monthly basis

. Regular customer are billed at discount rates
• Door delivery of good. Transportation of goods from delivery point to specific
sites is done without levying additional
• No demurrage charged, demurrage is normally charged for delay in removing
the good/ consignment from godowns.
• Enquiries regarding movement; receipt of consignment is given specific
information with regard to date & time of arrival/ expected arrival. Enquiries are
online reply.

5. CLAIM HANDING IN KRS

Sometimes there may be shortage or damage of goods during the transportation .the
transport wilted. So it will be helpful to the parties to trace out their valuable misplaced
consignment within a short period.
A certificate is issued at the time of delivery for a managed or shortage good. This will
produce by the prices to obtain related claims
In case of miscarriage, inspectors, in sectors are checking al, their racketed branches
throughout and tracing out the excess and shortage consignment and settle those as per
the claim related. So it will be helpful to the parties to the trace out their valuable
misplaced consignment within a short period.
6. PROBLEM FACED BY KRS.
Every business faces many problems. Problem cause much difficulty in the attainment of
organizational objectives. So to reach their goals, every organization needs to identify the
problem and do the correct action to solve those problems.
2.2.7 SWOT ANALYSIS
A SWOT analysis looks at future possibilities for the institution through a systematic
approach of introspection into both and negative concerns. It is relatively a simple way of
communicating ideas. Policies corners to other. It helps administered to quickly expand
their vision. Probably the strongest decision making should b contain each of the
elements.A swot analysis can be done if internal and external environment is an
important part of the strategic process. Environment factors internal to the firm can be
classified as strength (s) weakness (w) and factors to the firm can be classified as
opportunities (0) and threats (t) such an analysis of internal factors is referred to as swot
analysis. The SWOT has been a useful tool for the industry. The process of utilizing the
SWOT requires an internals survey of opportunities and threats.

STREGTHS
 What company exceptionally well?

 What advantages company has?
 What valuable assets and Resources Company?
 What do members identify as company’s strength?
Every organization has some strength; in some cases this is obvious, for example,
dominant market share in other cases it is a matter of perspective. For in stance, company
is very small and has the ability to move fast, it is whether these strengths are adequate is
in issue for analysis
STREGTH OF THE KRS
1) Goods infrastructure
2) quality and times service
3) brad image
4) the company got many certification and an ISO 9OO1-2OOO standard
5) extensive operational network
WEAKNESS
 What could the company do better?

 Where in the company vulnerable?
Every organization has also some weakness. In some cases this is obvious. Say for
instance, a stricter regularly environment; in other cases it is matter of perception. For
example a company has 90% market share and is open to attack from every new players;
it is important to note that companies that are extremely component in that they do, also
have weakness. How badly these weakness will affect the company is matter of analysis
WEAKNESS OF KRS
1. Marketing activity weak

2 lack of promotional activities under taken by the firm, to promote staff.

3) Goodwill not projected
4) Lack of shared vision

5) Contemporary HR practices absent
OPPERTUNITIES
 What opportunities does the company have, But not able to address?
 Are there any emerging trends on which company can capitalize?
All the organization has so some opportunities that can gain from. These could be from
diversification, Sales operation, identify hidden opportunities is the matter of analysis.
OPPERTUNITIES OF KRS
1) increased demand for reliable a and effective mass transport
2) KRS is no: 1 Kerala
3) Daman for integrated multi model transport
4) Tries to maximize the role in industry
5) Potential leverage crore competencies in freight and refrigerated Transport
THREATS
 Are any of company weaknesses likely to make it critically vulnerable?
 What external barriers exist barriers exist and how they hinder the company’s
progress
 Are the competitors doing anything different?
 Is technology dramatically changing the sector service to it? Or is the
company matching the changes in technology
 Are economic conditions affecting company’s financial stability?
THREATS
1) Growth in competition
2) Tax burden: Lenient attitude of government attitude towards clandestine operation
change which took place in logistics industry. No organization is immune to threats.

These could be internal, such as falling productive or could external such as lower
priced international competition
ORAGNISATIONAL STRUCTURE

2.2.8 ORGANISATION STRUCTURE
The hierarchical organization structure of KRS is depicted

below:
BOARD OF DIRECTORS
General Manager General Manager

(Accounts) (Administration)
Regional Manager EDP Manager
Area Manager Asst. Manager (EDP)
Branch Manager
Clerks

THERIACAL REVIEW

3.1 THEARTICAL REVIEW
Introduction
A literature review discusses published information in a particular subject area, and
sometimes information in a particular subject area within a certain time period.
A literature review can be just a simple summary of the sources, but it usually has an
organizational pattern and combines both summary and synthesis. A summary is a recap
of the important information of the source, but a synthesis is a re-organization, or a
reshuffling, of that information. It might give a new interpretation of old material or
combine new with old interpretations. Or it might trace the intellectual progression of the
field, including major debates. And depending on the situation, the literature review may
evaluate the sources and advise the reader on the most pertinent or relevant.
This chapter began with concept of marketing, meaning of logistics, Importance of
customer satisfaction, essentials of logistics:
3.1.1 CONCEPT OF MARKETING: Marketing is the process by which
companies create customer interest in goods or services. It generates the strategy that
underlies sales techniques, business communication, and business developments. It is an
integrated process through which companies build strong customer relationship and
create questionable value for their customers and for themselves. Marketing is used to
identify the customer, to satisfy the customer, and to keep the customer. With the
customer as the focus of its activities, it can be concluded that marketing management is
one of the major components of business management. Marketing evolved to meet the
stasis in developing new markets caused by mature markets and overcapacities in the last
2-3 centuries. The adoption of marketing strategies requires businesses to shift their

focus from production to the perceived needs and want of their customers as the means
of staying profitable
The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target market and delivering the desired satisfactions it
proposes that in order to satisfy its organizational objectives, an organization should
anticipate the needs and wants of consumers and satisfy these more effectively than
competitors. Marketing is defined by the American Marketing Association (AMA) as
"the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging Offerings that have value for customers, clients, partners, and society at
large. The term developed from the original meaning which referred literally to going to
a market to buy or sell goods or services.
The Chartered Institute of Marketing defines marketing as "the management process
responsible for identifying, anticipating and satisfying customer requirements profitably.
A different concept is the value-based marketing which states the role of marketing to
contribute to increasing shareholder value In this context, marketing is defined as "the
management process that seeks to maximize returns to shareholders by developing
relationships with valued customers and creating a competitive advantage."
Marketing practice tended to be seen as a creative industry in the past, which included
advertising, distribution and selling. However, because the academic study of marketing
makes extensive use of social sciences, psychology, sociology, mathematics, economics,
anthropology and neuroscience, the profession is now widely recognized as a science,
allowing numerous universities to offer Master-of-Science (MSc) programmers. The
overall process starts with marketing research and goes through market segmentation,
business planning and execution, ending with pre and post-sales promotional activities. It

is also related to many of the creative arts. The marketing literature is also adept at re-
inventing itself and its vocabulary according to the times and the culture.
Customer orientation: A firm in the market economy survives by producing goods

that persons are willing and able to buy. Consequently, ascertaining consumer demand is
vital for a firm’s future viability and even existence as a going concern. Many companies
today have a customer focus (or market orientation). This implies that the company
focuses its activities and products on consumer demands. Generally there are three ways
of doing this: the customer-driven approach, the sense of identifying market changes and
the product innovation approach. In the consumer-driven approach, consumer wants are
the drivers of all strategic marketing decisions. No strategy is pursued until it passes the
test of consumer research. Every aspect of a market offering, including the nature of the
product itself, is driven by the needs of potential consumers. The starting point is always
the consumer. The rationale for this approach is that there is no point spending R&D
funds developing products that people will not buy. History attests to many products that
were commercial failures in spite of being technological breakthroughs.
A formal approach to this customer-focused marketing is known as SIVA (Solution,

Information, Value, and Access). This system is basically the four Ps renamed and
reworded to provide a customer focus. The SIVA Model provides a demand/customer
centric version alternative to the well-known 4Ps supply side model (product, price,
placement, promotion) of marketing management.
Product → Solution
Price → Value
Place → Access
Promotion → Information

If any of the 4Ps had a problem or were not there in the marketing factor of the business,
the business could be in trouble and so other companies may appear in the surroundings
of the company, so the consumer demand on its products will become less
Services marketing
Services marketing relates to the marketing of services, as opposed to tangible products.

A typical definition of a service (as opposed to a good) is thus:
• The use of it is inseparable from its purchase (i.e. a service is used and consumed
simultaneously)
• It does not possess material form, and thus cannot be smelt, heard, tasted, or felt.
• The use of a service is inherently subjective, in that due to the human condition,
all persons experiencing a service would experience it uniquely.
As examples of the above points, a train ride can be deemed as a service. If one buys a
train ticket, the use of the train is typically experienced concurrently with the purchase of
the ticket. Although the train is a physical object, one is not paying for the permanent
ownership of the tangible components of the train
Services (by comparison with goods) can also be viewed as a spectrum. Not all products
are pure goods, nor are all pure services. An intermediary example may be a restaurant,
where the waiter service is intangible, but the food is tangible.
In marketing, the term market refers to the group of consumers or organizations that is
interested in the product, has the resources to purchase the product, and is permitted by
law and other regulations to acquire the product. The market definition begins with the
total population and progressively narrows as shown in the following diagram.

3.2.1.1
Market Definition
Conceptual Diagram
Beginning with the total population, various terms are used to describe the market based
on the level of narrowing:
• Total population
• Potential market - those in the total population who have interest in acquiring
the product.
• Available market - those in the potential market who have enough money to
buy the product.
• Qualified available market - those in the available market who legally are
permitted to buy the product.

• Target market - the segment of the qualified available market that the firm has
decided to serve (the served market).
• Penetrated market - those in the target market who have purchased the
product.
In the above listing, "product" refers to both physical products and services.
The size of the market is not necessarily fixed. For example, the size of the available
market for a product can be increased by decreasing the product's price, and the size of
the qualified available market can be increased through changes in legislation that result
in fewer restrictions on who can buy the product.
Defining the market is the first step in analyzing it. Since the market is likely to be
composed of consumers whose needs differ, market segmentation is useful in order to
better understand those needs and to select the groups within the market that the firm will
serve.
3.1.2 Logistics
Logistics is the management of the flow of goods, information and other resources in a
repair cycle between the point of origin and the point of consumption in order to meet the
requirements of customers. Logistics involves the integration of information,
transportation, inventory, warehousing, material handling, and packaging, and
occasionally security. Logistics is a channel of the supply chain which adds the value of
time and place utility. Today the complexity of production logistics can be modeled,
analyzed, visualized and optimized by plant simulation software.
Origins and definition
The term logistics comes from the Greek logos (λόγος), meaning "speech, reason, ratio,
rationality, language, phrase", and more specifically from the Greek word logistiki
(λογιστική), meaning accounting and financial organization.

Logistics is considered to have originated in the military's need to supply themselves

with arms, ammunition and rations as they moved from their base to a forward position.
In ancient Greek, Roman and Byzantine empires, military officers with the title
Logistikas were responsible for financial and supply distribution matters.
The Oxford English Dictionary defines logistics as "the branch of military science having
to do with procuring, maintaining and transporting materiel, personnel and facilities."
Another dictionary definition is "the time-related positioning of resources." As such,
logistics is commonly seen as a branch of engineering that creates "people systems"
rather than "machine systems". When we talk in terms of HRM logistics means giving
inputs i.e. recruiting manpower’s which ultimately works for the final consumer or to
deliver services.
3.12 Military logistics
Militaries have a significant need for logistics solutions, and so have developed advanced
implementations. Integrated Logistics Support (ILS) is a discipline used in military
industries to ensure an easily supportable system with a robust customer service (logistic)
concept at the lowest cost and in line with (often high) reliability, availability,
maintainability and other requirements as defined for the project.
In military logistics, logistics officers manage how and when to move resources to the
places they are needed. In military science, maintaining one's supply lines while
disrupting those of the enemy is a crucial some would say the most crucial element of
Military strategy, since an armed force without resources and transportation is
defenseless.
The United States Military logistics support is grouped into 10 classes of supply:
Supply chain management in military logistics often deals with a number of variables in
predicting cost, deterioration, consumption, and future demand. The US Military's
categorical supply classification was developed in such a way that categories of supply
with similar consumption variables are grouped together for planning purposes.

For instance peacetime consumption of ammunition and fuel will be considerably less
than wartime consumption of these items, whereas other classes of supply such as
subsistence and clothing have a relatively consistent consumption rate regardless of war
or peace. Troops will always require uniform and food. More troops will require equally
more uniforms and food.
In the table above, each class of supply has a consumer. Some classes of supply have a
linear demand relationship -- as more troops are added more supply items are needed --
as more equipment is used more fuel and ammo is consumed. Other classes of supply
must consider a third variable besides usage and quantity: time. As equipment ages more
and more repair parts are needed over time, even when usage and quantity stays
consistent. By recording and analyzing these trends over time and applying to future
scenarios, the US Military can accurately supply troops with the items necessary at the
precise moment they are needed (Source - Joint Logistics Analysis Tool). History has
shown that good logistical planning creates a lean and efficient fighting force. Lack
thereof can lead to a clunky, slow, and ill-equipped force with too much or too little
supply.
In history, some have attributed the defeat of the British in the American War of
Independence and the defeat of the Axis in the African theatre of World War II to
logistical failure. The historical leaders Hannibal Barca,Alexander the Great, and the
Duke of Wellington are considered to have been logistical geniuses.
Logistics management
Logistics management is that part of the supply chain which plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods, services
and related information between the point of origin and the point of consumption in order
to meet customer and legal requirements. A professional working in the field of logistics
management is called a logistician.
The Chartered Institute of Logistics & Transport (CILT) was established in the United
Kingdom in 1919 and was granted a Royal Charter in 1926.

The Chartered Institute is one of the professional bodies or institutions, for the logistics
and transport sectors, that offers professional qualifications or degrees in logistics
management.
3.1.3 Warehouse management systems and warehouse control systems
Although there is some functionality overlap, the differences between warehouse

management systems (WMS) and warehouse control systems (WCS) can be significant.
Simply put, a WMS plans a weekly activity forecast based on such factors as statistics
and trends, whereas a WCS acts like a floor supervisor, working in real time to get the
job done by the most effective means. For instance, a WMS can tell the system it is going
to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by
the time it acts, other considerations may have come into play or there could be a logjam
on a conveyor. A WCS can prevent that problem by working in real time and adapting to
the situation by making a last-minute decision based on current activity and operational
status. Working synergistically, WMS and WCS can resolve these issues and maximize
efficiency for companies that rely on the effective operation of their warehouse or
distribution center
3.1.4 Logistics outsourcing
Third-party logistics: Third-party logistics (3PL) involves using external

organizations to execute logistics activities that have traditionally been performed
within an organization itself. According to this definition, third-party logistics
includes any form of outsourcing of logistics activities previously performed in-
house. If, for example, a company with its own warehousing facilities decides to
employ external transportation, this would be an example of third-party logistics.
Logistics is an emerging business area in many countries.
Fourth-party logistics
The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen
Consulting (Now Accenture) as an integrator that assembles the resources, capabilities

and technology of its own organization and other organizations to design, build,and run
comprehensive supply chain solutions. Whereas a third party logistics (3PL) service
provider targets a function, a 4PL targets management of the entire process. Some have
described a 4PL as a general contractor who manages other 3PLs, truckers, forwarders,
custom house agents, and others, essentially taking responsibility of a complete process
for the customer.
3.1.5 Business logistics
logistics as a business concept evolved in the 1950s due to the increasing complexity of
supplying businesses with materials and shipping out products in an increasingly
globalize supply chain, leading to a call for experts called supply chain logisticians.
Business logistics can be defined as "having the right item in the right quantity at the
right time at the right place for the right price in the right condition to the right
customer", and is the science of process and incorporates all industry sectors. The goal of
logistics work is to manage the fruition of project life cycles, supply chains and resultant
efficiencies.
In business, logistics may have either internal focus (inbound logistics), or external focus
(outbound logistics) covering the flow and storage of materials from point of origin to
point of consumption (see supply chain management). The main functions of a qualified
logistician include inventory management, purchasing, transportation, warehousing,
consultation and the organizing and planning of these activities. Logisticians combine a
professional knowledge of each of these functions to coordinate resources in an
organization. There are two fundamentally different forms of logistics: one optimizes a
steady flow of material through a network of transport links and storage nodes; the other
coordinates a sequence of resources to carry out some projects.
3.1.6 Production logistics
The term production logistics is used to describe logistic processes within an industry.
The purpose of production logistics is to ensure that each machine and workstation is
being fed with the right product in the right quantity and quality at the right time.

The concern is not the transportation itself, but to streamline and control the flow
through value-adding processes and eliminate non–value-adding ones. Production
logistics can be applied to existing as well as new plants. Manufacturing in an existing
plant is a constantly changing process. Machines are exchanged and new ones added,
which gives the opportunity to improve the production logistics system accordingly.
Production logistics provides the means to achieve customer response and capital
efficiency.
Production logistics is becoming more important with decreasing batch sizes. In many
industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing even a
single customer's demand to be fulfilled efficiently. Track and tracing, which is an
essential part of production logistics due to product safety and product reliability issues is
also gaining importance, especially in the automotive and medical industries
The Essentials of Logistics and Management: It provides a broad expertly

guided investigation into the knowledge required to maximize the practice of logistics in
a way that contributes to a company's growth. The text elaborates upon a conceptual
framework in which the role of all stakeholders and possible logistics are analyzed in a
systematic approach that explores customer relations management, interactive
information support, production optimization, and operations management, as well as
human resources and resource allocation. The purpose of this book is help managers
employ vision and strategy in developing a methodology that identifies, evaluates, and
utilizes all critical fact
CUSTOMER SATISFACTION
Customer satisfaction is the feeling derived by the consumer when

he compares the product’s actual performance with the performance
that he expects of it. Whether the buyer is satisfied after purchase
depends on the offer’s performance in relation to the buyer’s
expectation. In general, satisfaction is a person’s feelings of
pleasure or disappointment resulting from comparing products
perceived performance (outcome) in relation to his or her

expectations.
If the performance falls short of expectation, the customer is

dissatisfied. If the performance matches the expectations, the
customer is satisfied. If the performance exceeds expectations, the
customer is highly satisfied or delighted.
Complete customer satisfaction is achieved by understanding
customer requirements and delivering superior quality goods and
services. Companies must provide the customers with a continuous
flow of new ideas/offers and constantly enhance their service levels
to build up satisfaction among customers. Understanding the
customers and providing satisfaction is not the prerogative of the
marketing department alone. Every function or employee needs to
contribute to understanding the consumer needs and then fulfilling
them.
Organizations need to map customer needs and wants with their
products. If the product do not fulfill customer needs and wants,
organizations needs to take the initiative to improve their products.
Customers should be an integral part of product development and
improvement process. As customer needs and wants do not remain
constant, organizations also need to monitor the trends in the
changes in customer needs and wants continuously so that they can
modify their products and services continuously to satisfy their
customers in the long run.

Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.

There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms. Measuring customer satisfaction
MEASURING CUSTOMER SATISFACTION

Organizations are increasingly interested in retaining existing customers while targeting
non-customers; measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization's products.
CUSTOMERS’ EXPECTATION:
How do the buyers form their expectation?, From past buying experiences, friends,
associate’s advice, marketers, competitors information and promises. If the marketers
raise the expectations too high, the buyer is likely to be disappointed. However, if the
company sets expectations too low, it won’t attract enough buyers. Some of today’s
most successful companies are raising performance and delivering performance to
match.
SERVICE QUALITY
One effective strategy used in differentiating an offer from that of the competitors is to
delivering quality service to the customers. Customer service is the key to market
penetration and growth.

Product and service quality, customer satisfaction, and company profitability are
intimately connected. Higher level of quality results in higher level of customer
satisfaction, which support higher prices and (often) lowers cost.
The service quality can be measured on the following five dimensions.
 Reliability: The ability to perform the promised service dependably and
accurately.
 Tangibles: The appearance of physical facilities, equipment, personal and

communication materials.
 Responsiveness: The willingness to help customers and provide prompt
service.
 Assurance: The knowledge and courtesy of employees and their ability to
convey trust and confidence.
 Empathy: The caring, individualized attention provided to the consumer.
In order to measure service quality, one has to assess customer

expectation and his or her actual experience with the service
provided by the firm, based on the five dimensions of the service
quality. The gap between the two will indicate whether the service
quality is high or low on each of these variables. Often one may find
the gap between the customers expected level of service and
service provider’s perception of it, it is these gaps that need to be
closed through appropriate organizational interventions in
technology, systems, policies, human resource development, and
marketing.
In measuring the customer’s perception, one may ask the customer
to first rank the five dimensions of service quality in their order of
importance to him or her. Subsequently, he or she may be asked the
attributes that he or she expects in an ideal or excellent similar

product firm. This exercise helps provide customer perceptions. He

or she may then be asked to rank the firm’s service quality on the
basis of his or her actual experiences, on the basis what he or she
thinks, or on the basis of others experiences and corporate
communication. This provides customer expectation of actual
service delivered by the firm.

DATA ANALYSIS AND INTERPRETATION
4.1 DATA ANALYSIS AND INTERPRETATION
This chapter includes the analysis and interpretation of the collected data. Statistical tools
or techniques like percentages were used for expressing the results Interpretations are
made on the basis of the results of the analysis.
The questionnaire was a five point Likert scale. The analysis is made by giving tabulated
information on each factor about the expected and observed factors.
Need for Interpretation

Interpretation is essential for the simple reason that the usefulness and vitality of the
research finding lies in proper interpretation. It si being considered as a basic component
of research process because researcher gets the findings from the interpretation.
Suggestions to the company are made by analyzing the findings. Through the
interpretation only the researcher can understand the abstract principle that works
beneath his findings.
The factors analyzed are:
a) Fright rate

b) Credit facility
c) Service quality
d) Storage facility
e) Speed
f) insurance
g) timeliness
h) delivery system
i) reliability
4.1.1. Response showing satisfaction with KRS fright rate

(Tab 4.1.1)
OPTIONS NUMBER OF PERCENTAGE

RESPONDENTS
Highly satisfaction 16 25.8
High 17 27.4
Can’t say 15 24.1
Low 7 11.2
Very low 7 11.2
TOTAL 62 100
(Chart 4.1.1)

INTERPRETATION:
Out of the 62 respondents 28% are rated as high that means they have a very good
opinion about the freight rate in KRS and 26% give remark as very low. Only 26%
among 62 respondents are cant say with the statement. That means almost the entire
customer is more or less dissatisfied with the freight rate of KRS
4.1.2 Response showing the importance of fright rate (Tab 4.1.2)

RESPONDENTS
Highly satisfied 17 27.4
Satisfied 20 32.2
Moderate 9 14.5
Dissatisfied 11 17.7
Highly dissatisfied 5 8
TOTAL 62 100
(Chart 4.1.2)

INTERPRETATION:
Out of the 62 respondents 32% are rated as satisfied that means they are agreed with the
statement in logistics and 27% give remark as highly satisfied. 8% among 62 respondents
are highly dissatisfied with the statement. That means almost the entire customers are
giving high importance to the credit facility in logistics.
4.1.3 Response showing the rating of credit facility given by the company
(Tab 4.1.3)
NOPTIONS NUMBER OF PERCENTAGE

RESPONDENTS
Very good 13 20.96
Good 30 48.38
Average 12 19.35
Poor 1 1.6
Very poor 6 9.67
TOTAL 62 100

(Chart 4.1.3)
INTERPRETATION:
Out of the 62 respondents 48% are rated as good that means they have a very good
opinion about the credit facility in KRS and 21% give remark as vary good. Only 2%
among 62 respondents are poor with the statement. That means almost the entire
customer is very satisfied with the credit facility of KRS
4.1.4 Response showing the importance of credit facility (Tab 4.1.4)

RESPONDENTS
Very good 12 19.3
Good 11 17.7
Average 19 30.6
Poor 13 20.9
Very poor 7 11.2
TOTAL 62 100
(Chart 4.1.4)

INTERPRETATION:
Out of the 62 respondents 31% are rated as moderate that means they are average with
the statement in logistics and 21% give remark as poor. 11% among 62 respondents are
very poor for the statement. That means almost the entire customers are not giving
importance to the credit facility in logistics
4.1.5 Response showing the satisfaction level of service quality of KRS

(Tab 4.1.5)

RESPONDENTS
Satisfied 8 12.9
Moderate 16 25.8
Highly dissatisfied 7 11.29
TOTAL 62 100

(Chart 4.1.5)
INTERPRETATION:
Out of the 62 respondents 39% are rated as highly satisfied that means they have a very
good opinion about the service quality in KRS and 26% give remark as moderate. Only
11% among 62 respondents are highly dissatisfied with the statement. That means almost
the entire customer is satisfied with the service quality of KRS
4.1.6. Response showing the importance of service quality (Tab 4.1.6)

RESPONDENTS
Satisfied 9 14.5
Moderate 19 30.6
TOTAL 62 100

(Chart 4.1.6)
INTERPRETATION:
the statement in logistics and 24% give remark as dissatisfied. 11% among 62
respondents are in highly dissatisfied for the statement. That means almost the entire
customers are not giving importance to the service quality in logistics
4.1.7 Response showing the satisfaction level storage facility (Tab 4.1.7)

RESPONDENTS
Satisfied 16 25
Moderate 19 30.6
TOTAL 62 100

(Chart 4.1.7)
INTERPRETATION:
the storage facility in KRS and 26% give remark as satisfied. Only 5% among 62
respondents are highly dissatisfied with the statement. That means almost the entire
customer is satisfied with the speed of KRS
4.1.8 Response showing the importance of storage facility (Tab 4.1.8)

RESPONDENTS
Satisfied 9 14.5
Moderate 19 30
TOTAL 62 100

(Chart 4.1.8)
INTERPRETATION:
the statement in logistics and 21% give remark as dissatisfied. 5% among 62 respondents
are in highly dissatisfied for the statement. That means almost the entire customers are
not giving importance to the storage facility in logistics
4.1.9 Response showing the opinion about the speed (Tab 4.1.9)

RESPONDENTS
Very good 27 43
Good 16 25.8
Average 10 16.1
Poor 4 6.4
Very poor 5 8
TOTAL 62 100

INTERPRETATION:
Out of the 62 respondents 44% are rated as very good that means they are satisfied with
the speed facility in KRS and 26% give remark as good. Only 6% among 62 respondents
are poor in the statement. That means almost the entire customer is satisfied with the
speed at KRS
4.1.10Response showing the importance of speed (Tab 4.1.10)

RESPONDENTS
Very high 24 38.7
High 15 24
Can’t say 10 16.1
Low 10 16.1
Very low 3 4.8
TOTAL 62 100

(Chart 4.1.10)
INTERPRETATION:
Out of the 62 respondents 39% are rated as need for very high speed that means they are
satisfied with the speed in logistics and 24% give remark as high speed. 5% among 62
respondents are in very low for the statement. That means almost the entire customers
are need for the speed in logistics
4.1.11 response showing satisfaction level of the area of network of service

(Tab 4.1.11)

RESPONDENTS
Very good 20 32
Good 21 33
Average 14 22.5
Poor 2 3.2
Very poor 5 8

TOTAL 62 100
(Chart 4.1.11)
INTERPRETATION:
Out of the 62 respondents 34% are rated as average that means they are no need for the
insurance facility in logistics and 32% give remark as very good. Only 3% among 62
respondents are in not need for the statement. That means almost the entire customer is
satisfied with the insurance at KRS
4.1.12 Response showing the importance of area of network of services (Tab

4.1.12)

RESPONDENTS
Very good 11 17.7
Good 14 22.5
Average 21 33.8
Poor 12 19.3
Very poor 4 6.4

TOTAL 62 100
(Chart 4.1.12)
INTERPRETATION:
Out of the 62 respondents 34% are rated as average that means they are no need for the
insurance facility in logistics and 23% give remark as good. 19% among 62 respondents
are in not need for the statement. That means almost the entire customer is not need for
the insurance in logistics
4.1.13 Response showing the rating of timeliness in KRS (Tab 4.1.13)

RESPONDENTS
Very good 17 27.4
Good 18 29.5
Average 14 22.5
Poor 11 17.7
Very poor 2 3.2
TOTAL 62 100

(Chart 4.1.13)
INTERPRETATION:
Out of the 62 respondents 29% customers are satisfied that they are satisfied with the
timeliness and 27% give remark are very good. Only 3% among 62 respondents is poor
with the statement. That means almost all the customers are satisfied with the timeliness
provided by the company.
4.1.14 Response showing the importance of timeliness (Tab 4.1.14)

RESPONDENTS
Very good 20 32.2
Good 19 30.6
Average 15 24.1
Poor 8 12.9
Very poor 0 O
TOTAL 62 100

(Chart 4.1.14)
INTERPRETATION:
Out of the 62 respondents 32% are rated as very good that means they know need for the
delivery system in logistics and 30% give remark as good. 32% among 62 respondents
are in average with the statement. That means almost the some of customer is highly
aware of the timeliness in logistics
4.1.15 Response showing the rating of accuracy delivery system in KRS

(Tab 4.1.15)

RESPONDENTS
Very good 15 24,4
Good 8 12.9
Average 19 30.6
Poor 16 25.8
Very poor 4 6.45
TOTAL 62 100
(Chart 4.1.15)
INTERPRETATION:
Out of the 62 respondents 31% customers are average that satisfied with the delivery
system and 26% give remark as satisfied. Only 6% among 62 respondents is very good
with the statement. That means almost all the customers are dissatisfied satisfied with the
delivery system provided by the company.
4.1.16 Response showing the importance of delivery system (Tab 4.1.16)

RESPONDENTS
Very good 36 58
Good 13 20.9
Average 6 9.6
Poor 5 8
Very poor 2 3.2
TOTAL 62 100
(Chart 4.1.16)
INTERPRETATION:
Out of the 62 respondents 58% retailers are rated as very good that means they know
need for the delivery system in logistics and 20% give remark as good. 9 % among 62
respondents are in average with the statement. That means almost the entire customer is
highly aware of the delivery system in logistics
4.1.17 Response showing the satisfaction level of the modes of

transportation (Tab 4.1.17)

RESPONDENTS
Satisfied 13 20.9
Moderate 6 9.6
Highly dissatisfied 16 25
TOTAL 62 100

INTERPRETATION:
Out of the 62 respondents 26% customers are highly satisfied that satisfied with modes of
transportation and 21% give remark as satisfied. 10% among 55 respondents is neutral
with the statement. That means almost all the customers are satisfied with the
transportation facility provided by the company.
4.1.18 Response showing the importance of modes of transportation (Tab

4.1.18)

RESPONDENTS
Satisfied 14 22.5
Moderate 8 12.9
TOTAL 62 100
(Chart 4.1.18)
INTERPRETATION:
Out of the 62 respondents 39% customers are highly satisfied that satisfied with need for
modes of transportation and 22% give remark as satisfied. 13% among 62 respondents is
neutral with the statement. That means almost all the customers are need for the
transportation facility provided in a logistics.
4.1.19 Response showing the satisfaction level reliability of service at KRS

(Tab 4.1.19)

RESPONDENTS
Satisfied 12 19.35
Moderate 7 11.2
TOTAL 62 100

(CHART 4.1.19)
INTERPRETATION:
Out of the 62 respondents 45% customers are highly satisfied that satisfied with need for
modes of transportation and 20% give remark as satisfied. 19% among 62 respondents
are dissatisfied with the statement. That means almost all the customers are almost
satisfied with the transportation facility in a logistics industry
4.1.20 Response showing the importance of reliability (Tab 4.1.20)

RESPONDENTS
Highly satisfied 16 25..8
Satisfied 14 22.5
Moderate 13 20.9.
Highly dissatisfied 4 6.4.
TOTAL 62 100
(CAHRT 4.1.20)

INTERPRETATION:
Out of the 62 respondents 26% customers are rated that need for the reliability in
logistics and 23% give remark as satisfied. 21% among 62 respondents are moderate with
the statement. That means almost all the customer is aware of the reliability provided in
logistics

TESTING OF HYPOTHYSIS
4.2 TESTING OF HYPOTHESIS:
4.2.1 Chi- Square test:
Chi-square test is one of the important tests developed to test hypothesis. It is a non
parametric test. This test is first used by Karl Pearson in the year 1900. We want to
ascertain the frequency of events falling in specified categories in a number of business
problems. Chi-square test is a test statistic which measures the discrepancy between
observed or actual frequencies and their corresponding expected frequencies is called the
chi-square test (χ2). Here the test is used to test whether there is any significant

relationship between customer satisfaction and service marketing provided by the

company.
Null Hypothesis (Ho): The customer’s satisfaction is independent of service marketing.
Alternative Hypothesis (H1): The customer’s satisfaction is dependent of service

marketing.
Where
O = Observed frequency,
E = Expected frequency,
Where
TABLE 4.2.1 OBSERVED FREQUENCY TABLE:
HIGH MODERATE LOW TOTAL
HIGH 33 7 0 40
MODERATE 7 15 0 22
LOW 0 0 0 0

TOTAL 40 22 0 62
Expected frequency is calculated by using the formula;
TABLE 4.2.2 EXPECTED FREQUENCY TABLE:
HIGH MODERATE LOW
HIGH 25.81 14.19 0
MODERATE 14.19 7.81 0
LOW 0 0 0
Since some of the cell frequencies are less than five, Yates correction needs to be done.
This correction is done to avoid incorrect inference from Chi-square hypothesis tests.
Here regrouping is done combining the frequencies of adjoining groups so that the new
cell frequencies become grater than five.
Formula for Yates’ correction,
TABLE 4.2.3 CHI-SQUARE TABLE:
OBSERVED EXPECTED
FREQUENCY FREQUENCY (O-E) │O-E│- 0.5 [│O-E│- 0.5]2 [│O-E│- 0.5]2/E
(O) (E)

33 25.81 -7.19 6.69 44.76 1.73
7 14.19 7.19 6.69 44.76 3.15
7 14.19 7.19 6.69 44.76 3.15
15 7.81 -7.19 6.69 44.76 5.73
∑[(O-E) 2/ E] = 13.76
Degree of freedom = (r-1) × (c-1)
I.e., = (3-1) × (3-1)
=4
Level of significance = 5%
The table value of chi-squire for 4 degrees of freedom at 5% level of significance is

9.488
Calculated value = 13.76
INTERPRETATION:
Comparing calculated value with the table value with degrees of freedom as 4 at 5%
level of significance, it is found that the calculated value is higher than the table value,
which means the calculated value falls in the critical region. So the null hypothesis (Ho)
is rejected and the alternative hypothesis (H1) accepted. Due to the difference in the

calculated and tabulated value, it can be concluded that customer satisfaction is

dependent on the service marketing
5.1 FINDINGS
 following are the factors that a parcel service
a) Fright rate

b) Credit facility
c) Service quality
d) Storage facility
e) Speed of delivery
f) Insurance facility
g) timeliness
h) delivery system
i) reliability in service
j) Staff and agents

k) Area of net work
l) Communication system)
 The majority of customers suggests that transportation of the KRS Pvt. Ltd is
very good (Tab 4.1.2)
 Customers are highly satisfied with the timely delivery in the supply of the
products (Tab 4.1.5).
 Most of the customers are satisfied with the area of network (Tab 4.1.11).
 Most of customers are satisfied with the reliability in service (Tab 4.1.19).
 Almost all the customers are satisfied with storage facility provided by the
company (Tab 4.1.7).but needs to improve

 Customers are satisfied with the credit facility of the company (Tab 4.1.3).
 Only few customers are satisfied with the service quality of the company (Tab
4.1.5).
 Services of the company have a good sales movement in the market and also in
speed. (Tab 4.1.9)
 In textile shop customer main factors of influencing selection of service is speed

in the case general mainly concentrated on freight rate
 Advertisement has no effect on effect on any type of customer.
 Most of the customers are satisfied with settlement of claim , they have also
satisfied with duration of settlement
 Customers satisfied with dealings of staff and agents.
 Competitive customers are strongly influenced in the KRS exiting customers.
 Reason for using other than KRS
a) Supplier choice
b) Nearest deliver area
c) Low freight rate

d) Door delivery
Above all the company has a grate reputation in the market
5.2 SUGGETIONS
 The company should making arrangement for door delivery system. (Tab 4.1.15)
 Even though there is a good relationship between the company and the customers
in order to make this better and consistent, remedial measures have to be taken by
the company to make the relationship rather stronger.
 Company must upgrade the ability to reduce the freight rate without affecting the
profit. Especially for regular customers. (Tab 4.1.1)
 Company has to introduce much more facility for storage in order to make goods
not damaged and should give motivation for the company services quality.
 Handle the goods with special care.

 Give the station list ( branch name ) to all customers
 Company can concentrated on Tamilnadu state especially Coimbatore, tirupur,

erode area,chalapram, tali etc,
5.3 CONCLUSION:
From the survey conducted among the customers it can be concluded that customers
plays an important role in service marketing. Customers are very important persons in the
market, whose interest should be completely safeguarded by an organization. The
company should try to provide adequate services to motivate the customers.
So this study on customer’s satisfaction and service marketing has taken a closer
look at the levels of customer satisfaction. The suggestion, if valuable should be done
accordingly.

BIBLIOGRAPHY
• Kotler Philip and Amstrong Gray, principles of marketing, New Delhi, Price-Hall
of India private Ltd 2003.
• Kothari C.R, Research Methodology, New Delhi, New age international (p)
limited.
• Berman Barry and Joel R.Evans, Retail Management, New Delhi, Prentice-Hall
of India Pvt. Ltd.
• Potti L.R, Research Methodology, Thiruvananthapuram, Yamuna Publications.
• Vinoth V, Marketing Management, Central co-operative stores Ltd, University of
Calicut.
WEB SOURCES

 WWW.NETMBA.COM
 WWW.GOOGLE.COM
 WWW.SRIBD.COM
 WWW.WIKIPEDIA.COM
 GOOLE SCOLAR
QUESTIONNAIRE
Project topic: “A study on customer satisfaction with reference to service marketing by

KRS pvt ltd Calicut”
Respected sir,
This is a questionnaire prepared as a part of my MBA minor project. The information
provided by you will be used purely for academic purpose and would be kept
confidentially. I would be very much obligated if you could spare something in filling
this questionnaire
SIJU MON T.S

PART 1
1. Name

2. Name of store
3. Location
Part 2
4. Which type of goods are you dealing with?
5. How long you had been dealing with KRS?

Above 12 months 12 months 1 2-6 months 6-3 months below 3 months
6. Are you satisfied with KRS freight rate?

Highly satisfied satisfied moderate dissatisfied highly
dissatisfied
7. What is your opinion about the credit facility of KRS pvt ltd?
Very good good d average poor very poor
8. What is your satisfaction level on the quality service provided by the company?
Highly satisfied satisfied moderate dissatisfied highly dissatisfied
9. From your past experience rate the expectation level in importance of the following
Very high high cant say low very low
a. freight rate
b. speed in delivery
c. storage facility
d. service quality
e. timeliness
f. transportation modes
g. area of network

h. reliability
i. delivery system
j. Credit facility
10. Are you satisfied with storage facilities of KRS?

Highly satisfied satisfied neutral dissatisfied highly dissatisfied
11. What is opinion about the speed of the KRS?

Very high speed high speed moderate speed low speed poor
12. How much you can reliable on KRS on their services with out making any damages?
Very high High Neutral Low very low
13. What is your opinion about the timeliness on the services of KRS Pvt Ltd.?
Very good Good can’t say Poor Very poor
14. Rate the accuracy in the delivery system of KRS Pvt. Ltd.
Very good Good can’t say Poor Very poor
15. Are you satisfied with the area of network given by the company?
Highly satisfied satisfied Neutral Dissatisfied Highly dissatisfied
16. What is your level of satisfaction regarding the transportation modes?
Highly satisfied satisfied Nuetral Dissatisfied Highly dissatisfied
17. What else do you want to say to the company?
…………………………………………………………….

…………………………………………………………….
18. Any suggestion

…………………………………………………………….
………………………………………………………..........

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Market study of KRS Customer Satisfaction

Master of Business Administration 1 Kmct School of Business

1.2 SCOPE OF THE STUDY

The project entitled to “CUSTOMER SATISFACTION WITH REFERENCE TO

Master of Business Administration 2 Kmct School of Business

1.3 OBJECTIVES OF THE STUDY

1. To find out the customer satisfaction of the following aspects.

Master of Business Administration 3 Kmct School of Business

1.4 REASEARCH METHODOLOGY

Research in an investigation is to discover new facts. Woody defines research as a

The American marketing association defines “marketing as systematic gathering,

1.4.1 STATEMENT OF THE PROBLEM:

1.4.2 Research design

1.4.3 Sources and collection of data

Master of Business Administration 4 Kmct School of Business

The secondary data is collected from

The term questionnaire refers to a self-administered process where by the respondent

For survey, one district was chosen

Master of Business Administration 5 Kmct School of Business

By applying the value in equation we get, the sample size as 62

Master of Business Administration 6 Kmct School of Business

1.4.6 PILOT STUDY AND PRE TESTING:

Before conducting the final survey sample questions are issued to 20

1.4.7 TOOLS USED FOR ANALYSIS OF DATA:

1.4.8 STATISTICAL TEST USED:

Formula for computing the chi square,

Master of Business Administration 7 Kmct School of Business

Hypothesis is considered as the most important instrument in research. A hypothesis is an

I) Null Hypothesis (H0)

ii) Alternative Hypothesis (H1)

I) Null Hypothesis (H0):

ii) Alternative Hypothesis (H1):

Null Hypothesis (H0): customer satisfaction is highly independent on service marketing

Alternative Hypothesis (H1): customer satisfaction is dependent on service marketing

Master of Business Administration 8 Kmct School of Business

1.5 LIMITATION OF THE STUDY

1. The study was confined only Calicut district

2. Some of the respondents interviewed either were reluctant or negative in their

4. Consumer response may be biased.

Master of Business Administration 9 Kmct School of Business

Master of Business Administration 10 Kmct School of Business

2.1 INDUSTRY PROFILE

Master of Business Administration 11 Kmct School of Business

Effective transportation is indispensable to economic progress is Mining, manufacturing,

2.3 ECONOIMIC FUCTION OF TRANSPOTATION:

3. Specialization and division of labor: Transportation enables society to enjoy

natural resources endowment or through historical development. It thus leads to a better

2.4 MAIN PLAYERS AND ASSOCIATED VALUES

PLAYERS ASSOCIAED VALUES

1. CONSIGNOR a) minimum transit cost (Inclusive insurance)

Master of Business Administration 13 Kmct School of Business

2. CONSIGNEE a) minimum transit costs

3. CARRIERS a) maximum traffic/

4 TERMINALS a) less congestion

5. CARGO MANEGEMENT a) provide one window integrated service

6. FINANCIAL INSTISTUTION a) minimum risk

Master of Business Administration 14 Kmct School of Business

7. INSURENCE COMPANIES a) lower claim

2.5 Present scenario

Master of Business Administration 15 Kmct School of Business

Master of Business Administration 16 Kmct School of Business

2.2 COMPANY PROFILE

2.2.3 Service profile