AStudy of

Consumer behavior about air cargo FOR

Gujarat State Export Corporation Limited

Submitted to: Marwadi Education Foundation’s Group of Institutions

In partial fulfilment of the requirement of the award for the degree ofMaster of Business Administration

UnderGujarat Technological University

Under the guidance of

Faculty Guide: Prof. Bhavik Panchasara Company Guide: Krunal H. ShahAssistant Professor Asst. Manager(HR)Faculty of Management

Submitted by: SHERADIYA BUNTY CHANDUBHAIEnrolment No.: 128270591208 MBA Semester III Marwadi Education Foundation’s Group of Institutions MBA Program Affiliated to Gujarat Technological University Ahmedabad July 2013

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COLLEGE CERTIFICATE

This is to certify that the Summer Internship Project Work entitled “a consumer behavior about air cargo” submitted to me is carried out by Mr. BUNTY C. SHERADIYA, student of MBA Semester III, Enrolment Number 128270592108, for the fulfilment of MBA degree, under my guidance and supervision.

This is to best of my knowledge.

Dr. S. Chinnam Reddy Prof. Bhavik Panchasara Dean Assistant Professor Faculty of Management Faculty of Management

Date: ______________ Place: RAJKOT

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Student Declaration

I BUNTY SHERADIYA hereby declare that the report for ‘Summer Training Project’ entitled “ A consumer behavior about air cargo ” Is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged.

Place: Student Signature:

Date: Name of the student: SHERADIYA BUNTY C.

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ACKNOWLEDGEMENT

I would not have completed this project without the help, guidance and support of certain people who acted as guides and friends along the way. I would like to express my deepest and sincere thanks to my faculty guide BHAVIK PANCHASARA, for her invaluable guidance and help. The project could not be complete without her support and guidance. I am also thankful to Krunal Shah for his help in completing the project. They acted as a continuous source of inspiration and motivated me throughout the duration of the project helping me a lot in completing this project.

INDEX

Sr. No. Particulars

Page No.

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Part I General Information1 Industry Overview

1.1 History 8 1.2 Types of transport 9 1.3 problem of air cargo in India 16 1.4 Market players in the industry

2 Company Overview 2.1 History 18 2.2 Mission, Vision, Objective 19 2.3 future scheme 22 2.4 Board of Director 23

Part II Research Work3 Introduction of the study 24

3.1 Background of the study 25 3.2 Review of literature 25 3.3 Statement of problem 26 3.4 Objectives of the study 27

4 Research Methodology 4.1 Hypothesis [If applicable] 4.2 Research design 28 4.3 Sources of data 32 4.4 Sampling Method 32 4.5 Sampling design 33 4.6 Data collection method 33 4.7 Data collection instrument 34 4.8 Model specification/ Data analysis 35

5 Analysis and interpretation of data 466 Results and findings 467 Suggestions 47 8 Limitations of the study 489 Conclusion 49

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10 Bibliography [APA Format compulsory] 50 Annexures 51

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PART- I

INDUSTY OVERVIEW

TRANSPORT:

Transport is a system in which passengers & goods are carried from one place to another.

Modes of Transport:

Transportation is generally divided into three modes-LAND, WATER & AIR.

The Land Transport consists of roads and railways.

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Water Transport is also divided into two types:

(a) RIVER OR INLAND TRANSPORT

(b) SEA OR OCEANIC TRANSPORT.

The latest and the fastest mode of transport is Air Transport.

IMPORTANCE OF TRANSPORT

Transport is over whelming mechanical now days. Transport routes or channels are the basic arteries of our economy.

They provide important links between producers and consumers of goods.

The well unit transport system brings people very close to one-another.

They promote independence among people, in a greatly diversified economic, social and cultural life.

Transport network includes various means of transport.

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TYPES OF TRANSPORT IN INDIA

Þ ROADS

Þ RAILWAYS

Þ PIPELINES

Þ WATERWAYS

Þ AIRWAYS

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ROADS

India has one of the largest road networks in the world. Roads have been existence since ancient times. Ashoka and Chandergupta made great efforts to build roads. Sher Shah Suri built the Grand Trunk Road from Kolkata in the east to Peshawar in the west across the Indo-Gangetic Plains.

Major problems faced by our Road Transport are as follow –

(i) Road network in India is inadequate, in comparison to the passengers and traffic handled by them.

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(ii) 43% of the roads are unsurfaced. They become in operational during rainy season.

(iii) Length and width of the National Highways are inadequate. They are highly congested in cities. Their bridges and culverts are narrow

(iv) Road side amenities like drinking water, telephones facilities to meet accidental and looting emergencies, like police protection and health services are poor.

RAILWAYS

The Railways are the main artery of inland transport in India. The railways are 150 years old in India. The first train moved between Mumbai and Thane in 1854. The total length of railways is about 63,000 km. India has the second largest railway network in Asia. The Indian railways carry 40,000 lakh passengers and 4,000 lakh tones of goods a year. It is the largest public sector undertaking of country.

India has a network of 6867 station spread over a route length of 61,579 km. The length of running track is 107, 9694. About 23% of the route is electrified.

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Pipe Line Transport

In the past pipelines were used to carry water to cities and industries, these are also used for transportation of crude of natural gas and natural gas fields to refineries, fertilizer factories and big thermal power plants. Pipelines have made it possible to set-up big thermal power-plants in a shortest possible time and near to market.

WATER TRANSPORT

India has large number of perennial rivers and a very long coast line of 5560 km. Water transport is of two types :-

(i) Inland water Transport

(ii) Ocean water Transport

Inland Water Transport

Waterways are the cheapest means of transport. These are most suitable for carrying heavy and bulky goods. India has inland navigable waterways of 14,500 km in length. Out of these, only 3700 km are navigable by mechanized boats.

National Waterways

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Government of India has declared the following inland waterways as national waterways

1. The Ganga River between Allahabad and Haldia covering a distance of 1620 km.

2. The Brahmputra river between Sadiya and Dhubri (891 km)

3. The west coast canal between kollam and kottapuram covering a distance of 168 km.

4. The Champakara canal covering a distance of 14 km.

5. The Vdyogmandal canal covering a distance of 22 km.

AIR TRANSPORT

Airways provide the fastest mode of transport but they are very costly. For remote hostile and inaccessible areas, airways are the best means of transport. In 1953, air transport was nationalized. Now-a-days four air services are in operation.

1. Air India

2. Private Air Lines

3. Pawanhans Helicopters

4. Indian Airlines and Alliance air

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Factors responsible for progress and popularity are enumerated as under:-

1. The air services operate throughout the year as clear and cloudless sky facilities the flying.

2. Advanced Aluminium industry facilities the manufacture of aircraft in the country.

3. India serves as nodal point on the major air routes between Europe and South-East and East Asia.

4. India is a vast country. Hence rail and road transport are time-consuming as they have to cover long distances.

Airports are managed by the Airports Authority of India (AAI). Efforts are on to provide with the latest scientific technology to ensure passengers safety and quick handling of passengers and freight traffic.

International airports handle air traffic between the world and India. Thirteen international airports are:

1. Delhi 8. Kochi

2. Mumbai 9. Hyderabad

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3. Chennai 10. Guwahati

4. Kolkata 11. Bangalore

5. Amritsar 12. Thriuvananthapuram

6. Ahmedabad 13. Sri Nagar

7. Punji

PROBLEMS OF AIR TRANSPORT IN INDIA

1. There are a small number of industrial and business centers as compared to the size of the country.

2. Heavy goods can’t be transported from one place to another by aero planes.

3. The cost of aviation petrol is very high resulting in the high cost of operation and making air travel beyond the reach of middle classes.

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4. The components and spare parts of the aero planes are imported from other countries. This has impeded the growth of civil aviation of the country.

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COMPANY OVERVIEW

About GSEC Ltd.

GSEC Limited was once known as Gujarat State Export Corporation Limited, a public limited company. Largely engaged in the activities of export and import facilities as merchant exporter, and used to be a custodian of Customs at Air Cargo Complex? Ahmedabad, and Indore in India.

Presently GSEC Limited offers customized air cargo solutions for importers and exporters? supply chain. As an organized logistic player, GSEC Limited is associated to attempt and set the pace of Logistic Sector Transformation Phase of India, through outsized asset in acquiring global quality magnitude of industries? knowledge, and perceptive to develop thorough as seer value organization.

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In return, the above is offering GSEC Limited a cutting edge of escalation and long term sustainable opportunities in ferocious international, and optimistic domestic business environment.

To facilitate our clientele with Import & export of their products, GSEC Ltd. has initiated demystifying Impex procedures. GSEC Ltd. provide long term experience that adds value to your business. Our services range from consulting, designing, to manage and execution. This includes:

GSEC Limited offers customized air cargo solutions for importers and exporters? supply chain.Spreading our wings to serve domestic trading of Furnace Oil, and bitumen.We are into exports of fruits, vegetables & other horticulture products

Our soon-to-be spotlight is onto ICD infrastructure project at MP, followed by oil refinery and sea cargo industry penetration.

Aim / Vision / Mission

Vision: 

Our vision is to emerge as a leading Organisation in Global Logistics, vis-a-vis domestic & international trading. We believe, to lead in any industry, there is only one way: through focus on Quality. Hence, we commit to provide persistent privileged quality services and trust to craft contemporary dimensions in Global Logistics, and Trade services we endow with.

Aim: 

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GSEC Limited is aiming to provide value added, customer focused services of Global Logistics by being a point of reference in the field of Air Cargo Services in India, together with domestic & international trading, and we are all set to be spreading our wings to serve soon a sea cargo, in addition to ICD.

Mission:

At GSEC Limited, our mission statement is simple: To come forward as an excellent service slanting organisation in domestic & international trading, in addition to Global Logistics Sphere.Axiom of ‘growth, success, empowerment, and commitment’ is basic foundation of everything we do at GSEC Limited. The success for our 5 years strategy requires us to build on these foundations by focusing on Air Cargo, Domestic & International Trading markets through driving foreseeable future efficiency & other effective schema. 

We believe there is only advance reaching excellence i.e. through focusing on Quality. Hence we are fanatical to provide persistent privileged Quality Services to our present and future clientele. 

Amid our improved understanding of target industry in line with booming international trade opportunities smitten by boisterous economy of India, we trust to craft contemporary dimensions in domestic, as well as in international trade services.

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Objectives:

I. To provide persistent privileged quality of Air Cargo Services to our clientele

II. Domestic Trading of Furnace Oil, Bitumen

III. To escalate our International Trade en route for produce & commodities, seasonal fruits & vegetables, in addition to Imported Coal, & other petrochemical products

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IV. To gear up for our in-house Infrastructure project of ICD, Oil Refinery, and Sea Cargo penetration

V. To enhance stakeholder’s interests, in line with organisational growth realisation

FUTURE SCHEMA

Sea Cargo, ICD, Coal, Petrochemical Products:

Our soon-to-be spotlight is at Bangrod, Ratlam (MP). We are geared up for ICD infrastructure project; GSEC Limited Inland Container Depot is well suited to serve IMPEX market of Central, Western, and Northern part of India. Besides this, our future planning of oil refinery and foreseeable focus next is sea cargo industry at the core of our schema. In addition, GSEC Limited is optimistic for coal importation, and other petrochemical products.

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With our background, infrastructure, banking leverages, along with professional competitiveness and personalized service facets; GSEC Limited is determined to provide persistent privileged Quality Services and trust to craft contemporary dimensions in Global Logistics, and Trade services, we endeavor. 

BOARD OF DIRECTORS

Chairman & Managing Director: Mr. Rakesh R. Shah

Director:   Mr. Sameer H. Mankad

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Director: Mr. Shaishav R. Shah

Director:   Mr. Chinubhai R. Shah

Director: Mr. Natwarlal M. Patel

Director: Mr. Bhalabhai C. Patel

Director:    Mr. Shyamal Joshi

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RESEARCH WORK

INTRODUCTION OF 24 | P a g e

STUDY

OBJECTIVES OF STUDY

Detail study on air cargo industry Marketing Strategy in different areas as well as consumer preference about the air cargo products and the preference with respect to the customer group and brand preference as per demand by consumer.

As we know many factors affect business & future of company like companies Strategies, Quality, Quantity, Price, Taste, Preference etc. Our aim is to study such different aspects which affect market share & image of company. It differs from person to person, place to place & company to company. We also aim to find who is the leader of air cargo market.

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RESEARCH METHODOLOGY

Research Design

A framework or blueprint for conducting the air cargo research project. It specifies the details of the procedures necessary For obtaining the information needed to structure and solve air cargo research problem. A good research design will ensure that the marketing research project is conducted effectively and efficiently.

Research Design

Exploratory Research Design Conclusive Research Design

Descriptive Research Causal Research

Cross Sectional Design Longitudinal Design

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Single Cross Sectional Design Multiple Cross Sectional Design

1) Exploratory Research design:- Exploratory Research design mean to find something new thathelp us to collect, preliminary information and research hypothesis consumption. We have used research from literature Like news paper, magazines, and bullions for the relevant data of air cargo. In the initial phase of research our design was descriptive.

2) Descriptive research design:- Descriptive research design means to describe any situationOr information in detail, to describe something in related. Area At that time descriptive research is used means to give detail Explanation of the research then the descriptive research is used,Our primary objective is to analyze consumer preference toward air cargo. For that descriptive research is must in the later phase Of our research design was causal.

3) Causal research design:-

Causal research design means to study cause and effect relationship of the situation. Here in the market research, We have use Exploratory research design and Descriptive research design.

We started with exploratory research for the following reasons and ended with Descriptive research by explaining each topics In detail. To find out preference of consumer

toward air cargo industry, To find out the key players who give better satisfaction to consumer.

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RESEARCH INSTRUMENT

Basically there are 2 main types research instrument.

A) Questionnaire

B) Mechanical Devices

A) Questionnaire:-

In our research we have used questionnaire as a research instrument. There are two types of questionnaire.

(i) Structured Questionnaire:-

In this type of questionnaire all the questions are in pre decided format and it is asked in a logical sequence.

(ii) Unstructured Questionnaire:-

In this type of questionnaire questions are ready but not asked in logical sequence. Researcher can ask any question at any time according to his wish as the format is not pre decided. There are two types of questions.

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(a) Open ended questions:-

It means where respondents are allowed to answer in his own way by using words and sentences. Here freedom is provided to respondents to answer.

(b) Close ended questions:-

It means where respondents are provided the options and is supposed to answer from those alternatives only. Here freedom does not provided to respondents to answer. For our report we have used STRUCTURED QUESTIONNAIRE that includes both types of questions. In questionnaire few Open ended question and most of the question are close ended. In close ended type of questions we have used multiple choice question.

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Data Sources

The sources from which we get the information or data for research is know as data sources. It is very important the reliable source of information for keeping accuracy in both the data collection as well as the decision making. The researcher can gather primary data and secondary data.

1) Primary Data;-

The data that are freshly gathered for specific purpose or for a specific research project. The researcher collects the data on his own without any use of secondary data. Here we got the information by filled up the 100 questionnaires through respondents. We started our investigation by examine primary data without collecting secondary data.

2) Secondary Data:-

The data which already exists somewhere and it was gathered for same other purpose in the past. Here we got the information through internet by using different websites. We started our investigation by examine secondary data to see whether the problem can be partly or wholly solved without collecting costly primary data.

When the required data do not exist or out dated, inaccurate, incomplete or unreliable then we collected the primary data through various research approaches.

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SAMPLING DECISIONS

Researcher uses sampling plan to reduce time and cost of research. Few units from population are selected known as sample. Sampling plan has following three decisions to be made.

1) Sampling Unit:-

It refers to who should be surveyed. Researcher select the target audience and do the research. For our research sampling units are male and female consumers who doing import export business.

2) Sample Size:-

It refers to how many people to be surveyed. Sample size should be optimum to do survey to get more reliable result. For our research sampling size was 100 people who like to do import export.

3) Sampling Procedure:-

It refers to how should are choose the respondents. Sampling procedures are Z kinds. There are two type of sampling procedure

(i) Probability Sampling Procedure:-

It is used where all the units of population are given known and equal chance to be selected as sample.

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(ii) Non- Probability Sampling Procedure:-

It is use where all the units of population do not get known and equal chance to be selected as samples.

In our research we used Non- Probability Sampling Procedure by convenience sampling as all the units of population do not get known and equal chance to be selected as sample.

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Analysis of Data

Analysis of our research is divided in to four parts,

1) Screening,2) Coding,3) Decoding, and4) Tabulation.

1) Screening:-

Screening involves collection of all necessary information through questionnaire and then identifies the eligible questionnaire that are useful for research. In this process, we have discriminated the correct questionnaire and conducted our analysis on the basis of these error free questionnaire. We have conducted the further analysis.

2) Coding:-

In the second stage of analysis, We have market 1 to 10 numbers on the questionnaire. That means sample size was 100 respondents. Each and every questionnaire and the options given in each question was also assigned a code. We have used nominal scale for the coding.

3) Decoding:-

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In this step, our analysis the same method which we have applied at the time of coding in the actual questionnaire. In the computer, first of all we have entered 100 respondents. Questions include rating type of questions also. In the rating type of questions, the options were also considered as a separate question at the time of decoding.

4) Tabulation:-

In the tabulation stage, we as a researcher have used two types of tabulation. They are General tabulation and Cross tabulation. General tabulation, we have arranged the data in form of every question We have used percentile for the tabulation. Prepared from our side for each and every questions in our questionnaire.

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Survey Analysis [Consumer Questionnaire]

1) What do you do?

Import

31%

Export 19%Both 50%

31%

19%

50%ImportExportBoth

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2) Which types of goods do you Import or Export?

Perishable 12%Precious goods 19%Inferior 10%Luxury 25%Normal 34%

12%

19%

10%

25%

34%

Perishable Precious goods Inferior Luxury Normal

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3) Which mode of transport do you prefer for Import-Export?

By Air 35%By Sea Shipping 47%By Railway 10%By Roadways 8%

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35%

47%

10%

8%

By Air By Sea Shipping By Railway By Roadways

4) How do you give particular importance for transportation of goods?

5 4 3 2 1Safety 45 31 18 6 0Service 39 34 19 8 0Fast delivery 32 33 21 14 0

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Safety Service Fast delivery Category 40

5

10

15

20

25

30

35

40

45

50

Chart Title

5 4 3 2 1

5) Is air cargo tariffs are as compare to other?

Very Cheap 0%Cheap 4%Moderate 22%Expensive 38%very expensive 36%

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6) How often do you Import-Export?

Daily 5Once in Week 40Twice in week 37Monthly 18

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CheapMod-erate

Expensive

very expen-

sive

Very CheapCheapModerateExpensivevery expensive

Daily

Once in Week

Twice in week

Monthly

7) Do you use air cargo service?

Yes 65%NO 35%

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65%

35%

Yes NO

10) As per your opinion, is air cargo service is better?

Yes 76%No 24%

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76%

24%

Yes No

12) What problem you face in air cargo service?

Costly 80 Not safe 13other 7

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Costly

Not safe

other

Sales

Analysis and interpretation of data

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