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EXECUTIVE SUMMARY
Bajaj was a rewet learning experience in all total. Every day was challenging as
there was always something new to learn at every step. Every day was a market
survey and dealing with all sort of problems. Exposure to the market and its
industry taught me lot of things such as dealing with the customers, convincing
them to crack the deal, handing customers complaints. Also at Bajaj I dealt with
the dealers to convince them to tie-up with Bajaj for offering Retail EMI service
to the Bajaj Customers.
In doing all sort of thing I also experienced lot of things that I felt that has to be
sorted out for smooth working to the system suck like customer to opt for Bajaj
Retail EMI should be increased and in addition Retailers to offer the service
should also be increased.
Spending a weekend at the Central Mall of Future group was the best learning
experience one can had. All the dealer and customer dealing I learned were used
there at the same time to handle the situation and solve the problem.
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INTRODUCTION TO THE TOPIC
BAJAB FINSERV
Bajaj Finserv, a part of Bajaj Holdings & Investments Limited, is an Indian financial
services company focused on lending, asset management, wealth management and insurance.
The company through its joint ventures and subsidiaries employs over 20,000 employees and
has established a nationwide presence across over 1400 locations. The company is currently
engaged in consumer finance businesses, life insurance, and general insurance and has plans
to expand its business by offering a wide array of financial products and services in India.
BACKGROUND OF COMPANY
The financial services were transferred to Bajaj Finserv Limited (BFS) as part of the recently
concluded demerger from Bajaj Auto Limited, approved by the High Court of Judicature
at Bombay by its order dated 18 December 2007. The demerger was effective on 31 March
2007.
EMI CARD BY BAJAJ FINSERV
An EMI Card is simply a smarter way to buy consumer durables, digital and lifestyle products.
EMI Card offers various kind of benefits:
Pre-approved eligibility - The Bajaj Finserv EMI Card is a pre-approved loan in your
wallet.
Instant approval - The moment you choose your EMI plan and swipe your card, you
get an instant approval subject to the amount pre-approved to you.
Minimal documentation - Existing EMI card holders need not provide any documents,
as your EMI Card carries all the necessary documents that you require.
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Easy online shopping - Now online shopping gets easy and secured with Bajaj Finserv
EMI card. An OTP option is enabled to make your transaction safe.
Flexi tenor options - You have a range of options to choose your tenor from.
Zero foreclosure charges - You can choose to foreclose your loan anytime without
any extra charges.
Preapproved offers - As existing customer, you get exclusive pre-approved offers
from time to time, across a host of our partner retailers and manufacturers.
Online account access - You can get all information about your loan like payment
schedule, interest certificate, etc., through customer portal.
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BAJAJ PARTNER RETAILERS
EMI Card from Bajaj gives access to various kind of products that can be bought on EMI bases.
You just have to swipe your card on one of the Bajaj Retailers to buy the products. Bajaj has a
tie-up with various retailers to choose from.
Furniture
Give your home a makeover! From sofa sets and king sized beds to dining tables, shop for the
widest range of furniture with Lifestyle Finance from Bajaj Finserv. Complete list of retailers
and partners, as shown below.
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Fitness
From treadmills to cross trainers, Lifestyle Finance from Bajaj Finserv helps you buy the latest
fitness equipment on easy EMIs online or at Bajaj partner stores across the country. Complete
list of retailers and partners, as shown below.
Kitchen
A home isn’t perfect unless the Kitchen is. Lifestyle Finance from Bajaj Finserv helps you give
your kitchen the modular look. With partner stores in cities like Delhi, Chennai, Mumbai,
Kolkata, Bangalore, Pune etc., Bajaj provide everything to help you with the latest modular
kitchen designs. Complete list of retailers and partners, as shown below.
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Luxury Watches
Watch your time, change! Owning a luxury watch is now easy through Bajaj Finserv Lifestyle
Finance. Shop at partner outlets with the help of Bajaj in-store executives to assist your
purchase or use your EMI Card for instant shopping. Complete list of retailers and partners, as
shown below.
Cameras
You can buy cameras and accessories including lenses, tripods and studio equipment through
Bajaj Finserv Lifestyle Finance on easy EMI. Bajaj in store executives are present at all partner
outlets for assistance. You can also avail an EMI card to cut down the processing time to just
minutes. Complete list of retailers and partners, as shown below.
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COMPANY INFORMATION
About Bajaj Finance Limited (now known as Bajaj Finserv)
At Bajaj we understand the primal desire to create a better and bolder reality. Trying to achieve
success is the fuel, the bare necessity that drives each and every one of us. We understand that
it comes with access to money as a precondition.
Today, Bajaj is the most diversified non-bank in the country, financing the widest set of
outcomes. The cornerstone of Bajaj success lies in simply understanding your issues and pain
points, and the fact that your pursuits are not limited to a few areas of your life only. Since,
Bajaj understand these issues, it is able to create products and services which places the
advantage in your court.
Bajaj is driven by the simple philosophy of ‘Go for Great’. For Bajaj, every milestone is an
indication to better ourselves further and improve on our achievements. Greatness is an
unending journey, and it is this journey that we celebrate.
Bajaj entire portfolio is designed to enable you to take control of your aspirations. Aspirations
as varied as improving your lifestyle, buying a home, indulging in that much deserved family
holiday to expanding your business or making that big acquisition, whatever be your plan,
Bajaj have the capability to support it.
Customers may wonder though that all banks and non-banks do it, so what’s the big deal?
There is.
It’s not just the width of Bajaj portfolio to support all your aspirations across all walks of
customer’s life, but also the fact that no one can do it faster. And that’s not it. Bajaj ensure that
your pursuits are not limited by limited access to finance by extending the biggest ticket sizes
across most of its portfolios.
Through Bajaj deep investments in technology, processes and people, Bajaj have ensured it
deliver what it promise. Bajaj partner with the best in the game across the world to cut process
time and sift out unnecessary details. Bajaj put a result oriented work culture ahead of
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everything else. Bajaj keep as much focus on simplifying life for our existing customers as it
does for acquiring new ones.
The net result - customers get what you need in lesser time, a more transparent manner, giving
you the control to create bigger and bolder outcomes.
Here is a quick overview of Bajaj’s portfolio of businesses:
Consumer Finance
Durable Finance
Lifestyle Finance
Digital Product Finance
EMI Card
Salaried Personal Loan
Loan against FD
Extended warranty
Gold Loan
Professional Loan
Salaried Home Loan
SME Finance
E-commerce seller finance
Self-Employed Home Loan
Self-Employed Loan against Property
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Gold Loan
Lease rental discounting
Business Loan
Loan Against Shares
Professional Loan
Commercial Lending
Infrastructure Finance
Vendor Financing
Investment
Fixed Deposit
Mutual Funds
HISTORY OF THE COMPANY
Bajaj Finance Ltd (Formerly Known as Bajaj Auto Finance Ltd and know known as
Bajaj Finserv) is one of the leading Non-Banking Financial Corporation in India. The
company is a leading financier of two wheelers consumer durables personal computers and
personal loans. The Reserve Bank of India classified the company as an Asset Finance
Company. Bajaj Auto Finance Ltd was incorporated on March 25 1987 as a private limited
company. The company became a public limited company on October 27 1987. Initially the
company as was promoted by erstwhile Bajaj Auto Ltd and Bajaj Auto Holdings Ltd. As per
the scheme of de-merger of erstwhile Bajaj Auto Ltd the shareholding of Bajaj Auto Ltd in the
company has been vested with Bajaj Finserv Ltd. In order to offer various finance schemes the
company opened many branches in various locations throughout the country. During the years
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1991-95 the company opened their branch offices at Hyderabad New Delhi Chennai Bangalore
Mumbai Nagpur Vijayawada Nasik Vishakhapatnam Kolkata Goa Madurai and Pune. During
the year 1995-96the company completed their first Real Estate Project for Nayan Co-operative
Housing Society Ltd at Pune. Also they opened their branch offices at Baroda and Trivandrum.
During the year 1998-2003 they opened their branch offices at various places which include
Chandigarh Cochin Indore Ludhiana Surat Kolhapur Bhopal Bhubaneshwar Calicut Erode
Jalgaon, Jalandhar, Kanpur, Lucknow, Raipur, Rajkot, Salem, Solapur, Udaipur, Tirupati,
Amaravati, Amritsar, Bhavnagar, Durgapur, Jamshedpur, Jodhpur, Kopergaon, Mehsana,
Mysore, Siliguri and Vellore. During the year 2003-04 the company entered into the financing
of Personal Computers. They opened their branch offices at Hissar, Hubli, Patiala, Rourkela,
Agra, Ahmednagar, Ajmer, Akola, Alwar, Ambala, Anand, Bharuch, Bhilai, Chandrapur,
Dindigul, Eluru, Guna, Gurgaon, Himatnagar, Jagadhri, Jamnagar, Karaikudi, Karimnagar,
Karur, Kottayam, Kurnool, Navsari, Nellore, Palghat, Rajahmundry, Sangli, Tanjore,
Tirunelveli and Ujjain during the year 2004-05.During the year 2005-06 the company opened
Loan Shoppes with a view to enhance their direct marketing activity and their brand awareness.
They opened 22 shops and 14 new branch offices during the financial year. During the year
2006-07 the company opened 11 new branch offices in which the total number of branches has
gone up to 113. Also they cover 280 towns through their branch network. The company
launched new product lines / extensions during the year 2007-08. They launched IPO financing
for high net worth customer’s acquisition of AAA rated securitization transactions personal
loan cross sell program to their existing customers and financing for personal computers to
SMEs. The company has the plan to diversify their product offerings and grow other retail
finance product lines. In 2013 the company makes Rights issue in the Ratio of 3:19. In 2014
the company acquires Bajaj Financial Solutions for worth Rs 17cr. In 2015 Bajaj Finance
subsidiary gets license to commence housing finance business from National Housing Bank
(NHB) Kattupalli Port in Tamil Nadu.
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PARTNERSHIP OF BAJAJ
Future Group
It’s a matter of great pride when two big names come together, to empower their consumers to
make smart choices.
Bajaj are happy to announce our alliance with India’s leading retail group - Future Group, to
enable customers to convert all their purchases from any of the Future Group formats into no
cost EMIs, thus ushering in a digital era of intelligent buying.
Both companies are working towards enabling every Bajaj Finserv EMI Card Holder with the
ability to convert their purchases into no cost EMIs, in real time, at the point of sale, by swiping
their EMI Card at the POS machine. To further our bond, both companies are also coming up
with a co-branded EMI Card soon.
Brands and Their Categories
Bajaj customers across 98 cities can now avail no cost EMIs on products available under Future
Group formats such as Big Bazaar, FBB, Central, Brand Factory, Home Town and Ezone from
more than 400 stores. Soon, EMI financing will be available on other Future Group brands
such as Food hall, Easyday, as well as the online platform FabFurnish.com
With this tie-up, easy EMI financing now covers the complete spectrum of customers’ lives –
from grocery and household essentials, to fashion and accessories, from small appliances to
consumer durables, and from furniture to furnishing. This partnership has the breadth to fulfil
the needs of all Bajaj customers!
Financing Groceries
Big Bazaar is not just another hypermarket; it caters to every need of your family. For the very
first time, Bajaj Finserv EMI card customers can shop at Big Bazaar for groceries, clothes and
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much more, at no cost EMIs. Customers can now divide their spends, starting from Rs. 5,000,
into no cost EMIs of up to 5 months. Big Bazaar is fast growing with 220 stores offering EMIs
PAN India. What’s more you can even buy the Big Bazaar Profit Club (BBPC) card on no cost
EMIs on the Bajaj Finserv EMI card.
Financing Clothes and Accessories
Fashion at Big Bazaar (FBB), India’s style hub is redefining affordable fashion since 2008. At
FBB, Bajaj Finserv EMI card customers can divide all they buy into no cost EMIs. Bill amounts
of Rs. 5,000 and above can be divided into EMIs of up to 5 months. Currently, 50 FBB stores,
PAN India, are offering purchases on no cost EMIs.
Financing Clothes and Accessories
Central offers everything to the urban aspirational shopper and houses over 300 brands.
Customers can now shop for apparel and accessories with their Bajaj Finserv EMI card on no
cost EMIs of up to 5 months. The bill must amount to Rs. 5,000 or more. Currently, EMIs are
available in 31 stores PAN India.
Financing Clothes
Brand Factory, India's largest discount retail chain, gives Indian consumers the promise of
revolutionizing discount shopping by offering the best Indian and International brands.
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Customers can now swipe their Bajaj Finserv EMI card and buy clothes on no cost EMIs over
5 months when they shop for Rs. 5,000 and above at Brand Factory. Currently 38 stores PAN
India offer EMIs.
Financing Furniture and Furnishing
HomeTown offers customers a unique, personalized shopping experience, and has grown to be
India’s biggest store in homemaking, renovation and décor. Furniture, furnishings and small
appliances are now available on easy EMIs at Home Town with Bajaj Finserv EMI card.
Currently, 35 stores, PAN India, offer EMIs.
Financing Electronics
EZone houses the best of national and international electronics brands and Bajaj Finserv EMI
card customers can now buy their favorite gadgets on easy EMIs from Ezone. Currently, 42
Ezone stores offer no cost EMIs.
SWOT ANALYSIS
SWOT analysis is a process that identifies the strengths, weaknesses, opportunities and threats
of an organization. Specifically, SWOT is a basic, analytical framework that assesses what an
organization can and cannot do, as well as its potential opportunities and threats. A SWOT
analysis takes information from an environmental analysis and separates it into internal
strengths and weaknesses, as well as its external opportunities and threats.
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Strengths
Monetary assistance provided
Domestic market
High growth rate
Barriers of market entry
Existing distribution and sales networks
Weaknesses
Tax structure
Opportunities
New markets
Growing demand
Venture capital
Growth rates and profitability
Threats
Government regulations
Price changes
Cash flow
Financial capacity
Technological problem
Growing competition and lower profitability
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METHODOLOGY
Literature Review
Bajaj Finance ties up withretailers for loans to buyers for clothes, shoes, watches
Bajaj Finance has tied up with retailers and brands for loans tailor made for buyers of clothes,
shoes, watches, eyewear and fashion accessories, making it the first such scheme to be rolled
out in India. The retailers will bear the interest component of the loan, making it a no-cost
equated monthly instalment (EMI) option for the consumer.
Bajaj has tied up with the likes of Flipkart, AND, Global Desi, Benetton, Me & Mom, and
hundreds of local retailers, and is in advanced stages of rolling out the scheme with other large
retail chains. Consumers running up a bill value exceeding Rs. 5,000 can opt for the scheme.
Bajaj Finance president (consumer business) Devang Mody said consumers today have access
to all the aspirational fashion brands, but their lower wallet size remains a concern. "Retail
fashion finance is common in Western markets done by Gap, Target, Macy's and Walmart, so
it was a natural extension for us as well," he said.
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Consumers are still skeptical about big-ticket purchases and prefer to limit buying to mostly
discount sales and the festival season, though the economic environment has improved since
then. Bajaj has also forayed into travel and holiday finance by partnering with Cox & Kings.
Next on its cards is a finance scheme for grocery, too.
PROBLEM STATEMENT AND IMPORTANCE OF THE STUDY
Customer Related issues –
Trust the EMI option or not
Find the right place to use the EMI option
How to use the EMI option
How to make the EMI CARD
Dealers Related issues -
Opt for the Bajaj Finserv machine or web portal
Documentation required to avail the Bajaj service
Bajaj customers flow
Settlement of the EMI Account
The study was important to find out what problems are faced the customers and dealers with
the EMI option given by Bajaj and why they face such problem. Come up with a proper solution
for the problem and make it easily available to the customers and dealers so that their problem
could easily be solved as fast as possible.
LIMITATION OF THE STUDY
There are certain limitations under this project which includes:
The study is limited to one city only, hence generalization cannot be made.
This being an academic study suffers from cost and time constraints.
Unfair and mixed feedback by customers.
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RESEARCH METHODOLOGY
MEANING OF RESEARCH
Research in general refers to the search of knowledge. One can also define research as a
scientific & systematic collection of information.
In simple words, research is the careful investigation or enquiry of markets especially through
search for new facts in any branch of knowledge.
Research is Scientific and systematic search for gaining information and knowledge on a
specific topic or phenomena.
Research refers to the systematic method consisting of:
Enunciating the problem,
Formulating a hypothesis,
Collecting the fact or data,
Analyzing the facts and
Reaching certain conclusions either in the form of solutions towards the concerned
problem or in certain generals for some theoretical formulation.
Research methodology is a way to systematically solve the research problem. It may be
understood as the science of studying how research is done. Research in the common parlance
refers to a search for knowledge.
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RESEARCH DESIGN USED
The research design used in this project report is descriptive research design. A Descriptive
research design is a scientific method, which involves observing and describing the behavior
of a subject without influencing it in any way.
The methods used in context of this research design are:
The survey of concerning literature,
Experience Survey.
The important features of this research design are listed as follows:
The sampling design used is Non-Probability Sampling design and it is flexible in
nature.
There is a no pre-planned design for the analysis.
No fixed decisions about the logistics operational procedures.
WHY DESCRIPTIVE TYPE RESEARCH METHODOLOGY
The purpose of descriptive research design is in descriptive state. The main characteristic is
that the research has no control over the variables; he can only report what has happened or
what is happening. In this project all primary data has been taken by researcher to know about
the perspective of customers and dealers for Bajaj Retail EMI Service. These primary data have
been collected through the questionnaire.
SOURCES OF DATA COLLECTION
The information has been collected from both Primary and Secondary sources of information.
1. Primary Data
Primary Information has been collected through Observations, talking to dealers and
customers through the complete field work (by going into the market) in the areas of North-
West Delhi. Primary information has been collected through various techniques:
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Discussions: Discussions form a very important part of primary information
collection. Discussion includes discussion with every small person in the
hierarchy from retailer, merchandiser, Sales Officers and Area Sales Managers.
Interviews: Interviews were conducted with the Dealers and customers which
was my main focus so as to know where they have issues with the services
offered by Bajaj.
Observations: Information has also been collected by directly visiting the
fields, markets so as to know the view points of the dealers and customers about
services provided by us.
2. Secondary Data
Secondary Information has been collected by going through the number of reports of Bajaj
REMI Department that was updated daily by Bajaj Head Office.
The reports give us large amount of data but from that huge bulk of data you need to
analyze what is useful for you and what is not. Depending upon your analysis framework,
one can formulate his/her further strategy.
POPULATION SIZE
The effective population size (Ne) is defined as "the number of breeding individuals in an
idealized population that would show the same amount of dispersion of allele frequencies under
random genetic drift or the same amount of inbreeding as the population under consideration
POPULATION SIZE OF DEALERS - 100 DEALERS
POPULATION SIZE OF CUSTOMERS - 200 CUSTOMERS
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DATA ANALYSIS AND INTERPRETATION
DATA COLLECTED
ISSUES RELATED TO CUSTOMERS
ISSUE 1: CUSTOMERS TRUSTING BAJAJ Retail EMI SERVICE
Responses Trust Bajaj Retail EMI OPTION
YES 65%
NO 10%
NOT SURE 25%
INTERPRETATION: 65% of the customer trust the Bajaj Retail EMI option whereas 10%
customer don’t trust the option and 25% customer are not sure for the EMI option.
YES , 65%
NO, 10%
NOT SURE, 25%
TrustBajaj Retail EMI OPTION
YES NO NOT SURE
Table 5.1
Figure 5.1
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ISSUE 2: Bajaj having enough stores where Retail EMI facility can be availed
INTERPRETATION: 65% of the customers are satisfied with the number of store that Bajaj
has tied up with, while other 35% of the customers think that Bajaj need to tie up with more
stores which could offer more Retail EMI facility.
ISSUE 3: Customer find Bajaj Retail EMI facility useful
ENOUGH
STORES, 65%
MORE STOES
NEEDED, 35%
Enough storeto avail Babaj Retail EMI option
ENOUGH STORES MORE STOES NEEDED
Useful
Facility,
72%
NotUseful,
28%
Bajaj Retail EMI facility useful
USEFUL FACILITY NOT USEFUL
Figure 5.2
Figure 5.3
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INTERPRETATION: 72% customers find the EMI facility useful as they are able to purchase
high price items and pay for it in instalment with zero interest instead of paying full payment
right away while 28% customer like to pay full payment at time of purchase.
ISSUES RELATED TO BAJAJ DEALERS
ISSUE 1: Documentation problem faced by dealer for tip up with Bajaj for giving EMI
facility
INTERPRETATION: 90% of the dealers found the tip up process easy as far as the
documentation is concerned while other 10% find it very complex and time consuming.
YES, 10%
NO, 90%
Documention problem faced for tip up with Bajaj
YES NO
Respones Documention problem faced for tip up with Bajaj
YES 10%
NO 90%
Table 5.2
Figure 5.4
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ISSUE 2: Opt for Card Swipe Machine or Web Portal to provide Bajaj Retail EMI Service
INTERPRETATION: 95% of the dealers opted for Card Swipe Machine while other 5%
opted for online Web Portal offered by Bajaj to provide Retail EMI service to the customers.
ISSUE 3: Problem faced by dealers with the customer inflow who want to avail Retail EMI
service
INTERPRETATION: 50% the dealers have high inflow of customers who want to avail Bajaj
Retail EMI service while 20% of the dealers have low inflow and 30% dealers have no inflow.
SWIPE
MACHINE,95%
WebPortal,5%
Opt for Card SwipeMachine or Web Portal
SWIPE MACHINE Web Portal
HighInflow,
50%
Low Inflow,
20%
No Inflow,
30%
Problemfaced with customer inflow
High Inflow Low Inflow No Inflow
Figure 5.5
Figure 5.6
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ISSUE 4: Account settlement after offering EMI service to Bajaj customers.
INTERPRETION: 99% dealers were satisfied with their account while 1% faced settlement
problem.
Problem Faced,
1%
No
Problem
Faced,
99%
AccountSettlement Problem
Problem Faced No Problem Faced
Figure 5.7
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FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
FINDINGS AND CONCLUSION OF THE PROJECT
Most of the customer find the Retail EMI service useful.
Customers want more stores where they can avail Retail EMI service useful.
Dealers are more interested to tie up with Bajaj to increase customer inflow
and the ticket size of customer purchase.
Customer service is available for customer assistance.
RECOMMENDATIONS
Bajaj should increase the number of tie ups with the stores for its customer’s facility.
Customer service quality need to be improved.
Customer must have an option to pay his entire EMI amount in single payment if he
wants to.
More offers must be given to the dealers and customers to increase the market share.
