5 PDF

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 92

ABOUT THE

COMPANY


 
HISTORY OF THE COMPANY
Mid 19th century England The firm of George Townsend & Co. opened its doors in

the tiny village of Hunt End, near the Worcestershire town of Redditch. The firm was

specialized in sewing needles and machine parts. In the first flush of enterprise,

flitting from one opportunity to another, they chanced upon the pedal-cycle trade.

Little did they know then that it was the beginning of the making of a legend. Soon,

George Townsend & Co. was manufacturing its own brand of bicycles. And in 1893

its products began to sport the name ‘Enfield’ under the entity Enfield Manufacturing

Company Limited with the trademark ‘Made Like a

Gun’. The marquee was born.

INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors

(formerly Enfield of India)

FOUNDED 1893, as Enfield Manufacturing Co.

Ltd.

DEFUNCT 1971

HEADQUARTERS Redditch, Worcestershire, England

KEY PEOPLE Founders Albert Eadie and Robert Walker Smith

PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

Profile of the Organization


Royal Enfield is the makers of the famous Bullet brand in India. Established in 1955,

Royal Enfield (India) is among the oldest bike companies. It stems from the British

manufacturer, Royal Enfield at Redditch. Royal Enfield has its headquarters at


 
Chennai in India. Bullet bikes are famous for their power, stability and rugged looks.

It started in India for the Indian Army 350cc bikes were imported in kits from the UK

and assembled in Chennai. After a few years, on the insistence of Pandit Jawaharlal

Nehru, the company started producing the bikes in India and added the 500cc Bullet

to its line. Within no time, Bullet became popular in India.

Bullet became known for sheer power,

matchless stability, and rugged looks. It looked

tailor-made for Indian roads. Motorcyclists in the

country dreamt to drive it. It was particularly a

favorite of the Army and Police personnel. In

1990, Royal Enfield ventured into collaboration with the Eicher Group, a leading

automotive group in India, in 1990, and merged with it in 1994. Apart from bikes,

Eicher Group is involved in the production and sales of Tractors, Commercial

Vehicles, and Automotive Gears. Royal Enfield made continuously incorporating new

technology and systems in its bikes. In 1996, when the Government of India imposed

stringent norms for emission, Royal Enfield was the first motorcycle manufacturer to

comply. It was among the few companies in India to obtain the WVTA (Whole

Vehicle Type Approval) for meeting the European Community norms. Today, Royal

Enfield is considered the oldest motorcycle model in the world still in production and

Bullet is the longest production run model.

2010 AWARDS

The New Year saw the dawn of India's most prominent automotive show, the Auto

Expo 2010. Held between January 5th and 11th at the Pragati Maidan in New Delhi,

the event saw more than 400 global brands showcasing new technology, products

and show-off concepts.


 
Royal Enfield was also a part of the event, displaying the recently launched Royal

Enfield Classic 500 EFI and the Royal Enfield Classic 350. The main stays of the

Royal Enfield display were the soon to be launched variants of the Classic - the

Royal Enfield Classic Chrome and the Royal Enfield Classic Battle Green.

The Expo turned out to be a rather rewarding experience for Royal Enfield with the

Royal Enfield Classic and the Marketing team picking up as many as five awards.

Awards 2010:

- Apollo Auto India Awards 2010: Best Brand

- Zigwheels.com Viewers Choice Bike of the Year 2009

- Zigwheels.com Bike of the Year above 251cc

- NDTV Profit Car & Bike Awards 2010: Motorcycle of the Year above 250 cc.

- NDTV Profit Car & Bike awards 2010: Best PR Communications Team.

EVOLUTION OF ROYAL ENFIELD

THE BEGINNING (1851 – 1890)

Hunt End, England was a village of several small mills

manufacturing needles and fish-hooks. It was here in 1851 that George Townsend

put up his needle-making mill, which he named Givry Works. But it wasn’t until his

passing away that his son, George Jr. and his half-brother brought into Givry Works

one of the first 'boneshakers' – a crude cycle. It had a backbone of iron, with wooden

wheels, iron tires and pedals of triangular pieces of wood! Though the bike was a

source of some amusement, George and his team felt they could easily improve on


 
it. The earliest modern safety bicycle with two wheels of equal size had appeared in

about 1880. All manufacturers were trying their hand at this new venture. So was

George Townsend Jr. By luck, he chanced upon an invention in his neighbourhood –

a saddle that only used one length of wire in the two springs and in the framework.

This was adopted, patented and marketed as the 'Townsend Cyclists Saddle &

Spring'. He had entered the bicycle parts trade!

From bicycle parts, Townsend slowly moved on to producing bicycles himself. He

was also supplying a wide range of parts to other manufacturers - Givry Works was

growing rapidly. Over the next three years he developed his own range of over two-

dozen machines. Each machine, known locally as the 'Townsend cycle' was reputed

for its sturdy frame, a character that all Enfield bikes would follow.

THE COMING INTO BEING (1891 – 1900)

1891 A Little Trouble-Townsend got himself into a bit of financial trouble in about

1890 and called in some financiers from Birmingham. Unfortunately, they didn’t quite

see eye to eye. So Townsend parted ways with the financiers leaving the company

to them. The financiers then brought in Albert Eadie and R.W. Smith. They took

control of Townsend’s in November 1891. The following year the firm was re-

christened ‘The Eadie Manufacturing Company Limited’. Soon after, Albert Eadie got


 
a lucrative contract to supply precision rifle parts to the Royal Small Arms Factory in

Enfield, Middlesex.

1892 Kick Starting Royal Enfield-A new company was created to market these new

design bicycles called ‘The Enfield Manufacturing Company Limited’. By October

1892, the Enfield bikes were announced to the public. The following year the word

Royal (after the Royal Small Arms Company) was added and thus Royal Enfield

began. Then in 1893 the Royal Enfield trademark ‘Made like a Gun’ appeared.

Britain was caught up in a patriotic fervor and the slogan caught the spirit of the

time. In 1899 the first mechanical vehicle was advertised by Enfield Cycle Company.

It was available in both tricycle and quadric cycle form, powered by a De Dion 1.5 hp

engine. The high wheels, solid tires, block chains and heavy cross frames had by

then given way to Diamond frames, the Hyde Freewheel, Enfield 2 speed hub and

the well known Eadie Coaster. Then came the ‘Riche Model’ with more refined

fittings. By 1907, the cycle industry was still headquartered at Redditch, producing

run-of-the-mill conventional cycles.

1897-Quadricycles

In 1897, R. W. Smith built himself a quadric cycle – a simple bike with four wheels

and a French engine placed under the saddle between the rear wheels. During the

next two years several developments were made. About then, an Enfield quadric

cycle completed the 1,000-miles road trial of 1900 organized by the Automobile Club

of Great Britain and Ireland. The Enfield vehicle was awarded the silver medal,

although it had its share of troubles and breakdowns.


 
MOTORCYCLES (1900 - 1910) 1904-Four Wheelers and Three

Buoyed by success, Smith and Eadie decided to extend the range of quadric cycles

and tricycles to include motorcars. The first Royal Enfield cars were built in 1901 and

were on the road in 1902. It was an 8hp, using a DE Dion engine. The body was

made in Leicester and painted yellow hence car was known as ‘The Yellow Car’. But

this was just a temporary phase, a wild romance that was soon to die.

1909-Motorcycle Craze

It would be interesting to note here that motorcycling was thought to be a temporary

enthusiasm that would soon fade out! A brief spin on a motorbike then took several

hours of preparations - tuning the tiny water-cooled engine, getting the tires pumped,

the gears oiled and a supply of spare parts packed. In 1909, Royal Enfield took the

biking world by surprise. At the motorcycle show that year, they displayed a small 2

1/4 hp V twin-engine machine built in the Swiss tradition, which ran very well. A

slightly larger model was developed in 1911. A 2 3/4 hp, with all chain drive

incorporating the well-known Enfield two-speed gear. This model stood up until

1914.

THE ROYAL ENFIELD BIKES (1911 - 1920)

1911-Enfield and the War


 
The First World War began in 1914. Royal Enfield was called on to supply

motorcycles to the British War Department and even awarded a contract to build

bikes for the Imperial Russian Government during the same period. The machine

gun combination and the 6hp stretcher-carrying outfit were some of the models

produced for the war purpose. Enfield started using its own engines - a 225cc two-

stroke single and a 425cc V-twin about this time. Post-war, it produced a larger

976cc twin and continued to produce the two-speed 225L until 1929. In 1917, the

officers of the Women’s Police Force were issued with a 2 1/4RE 2

stroke. Interestingly, the models of this period featured 600cc, inlet-over-exhaust,

closed valve gear, hand-operated oil pump, two-speed countershaft gearbox and

chain final drive. In the 1913-1914 Enfield V-Twin the lubricating oil was contained in

a glass tank attached to the frame tube that ran from the seat to the rear of the

engine. This worked perfectly and had the added advantage of providing an instant

visual check of oil levels. The 1915 make 675cc in-line 3-cylinder 2-stroke prototype

was the worlds’ first with this configuration and engine type.

THE INTERWAR YEARS (1921 - 1930)

1924 The First Four-stroke-The interwar year was a period when the sidecar reached

its zenith. In July 1925, the Royal Enfield V-Twin-engine Dairyman’s Outfit took part

in the ACU Six Days’ Trial for Commercial Sidecars and obtained a Special

Certificate of Merit for completing an arduous course without loss of marks. The year

1924 saw the launch of the first Enfield four-stroke 350cc single using a JAP engine.


 
1928-The Depression

In 1928, Royal Enfield adopted saddle tanks and

center-spring girder front forks – one of the first

companies to do so. The bikes now with a modern

appearance and comprehensive range meant

continuous sales even during the dark days of

depression in Great Britain towards the end of 1930. In 1927 Royal Enfield produced

a 488cc with a four-speed gearbox, a new 225cc side-valve bike in 1928, and a four-

stroke single in 1931. Several machines were produced in the next decade, from a

tiny two-stroke 146cc Cycar to an 1140cc V-twin in 1937. Can you even imagine that

Royal Enfield’s range for 1930 consisted of 13 models!

ESTABLISHING BULLET (1931 - 1940)

1933 The Bullet Arrives-In 1931 a four-valve, single-

cylinder was introduced, and christened 'Bullet' in

1932. It had an inclined engine and an exposed valve

gear. It was then that the first use was made of the

now famous Bullet name. Longer stroke, four-valve head exposed valves and heavily

finned crank case were the features that ran from 1932 until the end of 1934.

1940 The Second World War-The most well known

offering for the Second World War was no doubt the

‘Flying Flea’. Also known as the ‘Airborne’, this

lightweight 125cc bike was capable of being dropped


 
by parachute with airborne troupes. The Flea was fitted into a steel tubular cage

called the ‘Bird Cage’, which had a parachute attached to it. The cage aided in

packing turning handlebars easily.

POST WAR BULLETS (1941 - 1950)

1948 Bigger and Better-The 1939 Bullet 350 kick-

started the post-war models. They used two rocker

boxes for the first time. This enabled better gas flow

and consequently higher volumetric efficiency.

Royal Enfield’s own designed and manufactured telescopic front fork placed the

Redditch marquee at the very forefront of motorcycle design. The biggest

advancement introduced by the new Bullet was its swinging arm rear suspension

system and hydraulic damper units themselves. In 1947 Enfield made a J2 - the first

model with a telescopic front end, followed in 1948 by a 500cc twin (Enfield's 25bhp

answer to the Triumph Speed Twin), which stayed in

production until 1958.

1949 The Indian Debut-In 1949, the 350cc Bullet was

launched in India, when Madras Motors won an

order from the Indian Army for the supply of motorcycles. It was the beginning of the

reign of the Bullet in the subcontinent. The Madras Motor Company started off by

receiving the Bullet in kits and simply assembling them. Then they began making the

frames. After this Enfield started sending the engine in parts to be assembled in

India. Eventually they were also manufacturing the engines, which meant that they

were making the complete bike. For the next thirty years, the design of their bike

remained unchanged! In 1950, several models were introduced: the 650cc Meteor

10 
 
twin; a 250cc Clipper; a short stroke 250cc Crusader; 250cc Trials; Super 5;

Continental; 500 Sports Twin; Super Meteor; Constellation and the Interceptor.

A TALE OF TWO CITIES (1951 - 1960)

1951-In the UK…Never before in British automobile

history had so much been done in a single decade,

not just by Royal Enfield, but the every other

marquee of the time. All new engines, all new

configurations, new paint schemes, new capacity

classes… the motorcyclist had never had such a wide choice ever before. The 1950s

saw the market open up both ways, downwards for smaller capacity, light and

maneuverable machines, and upwards for larger capacity, high powered and reliable

motorcycles. The Royal Enfield showrooms in the UK saw everything from 125cc two

strokes to the mighty700ccMeteor.

1955-Meanwhile in Madras…The Indian Army, the sole

reason why the Bullet was brought to India in the first

place, insisted that they would continue doing business

with Madras Motors only if the Bullet was produced

indigenously. The Enfield India Bullet of the late fifties was quite a different

motorcycle from the one we are used to today. Using the famed Lucas Magdyno

ignition system, the 1955 Bullet was almost a clone of the 52 Redditch Bullet. The

frame, electric tin ware and rolling chassis, however, were to undergo many changes

over the next ten years, with the Bullet slowly evolving into the familiar form we know

and love today.

11 
 
A TALE OF TWO CITIES. NO… THREE! (1961 - 1970)

1961-Back in the UK…In 1960, the badge

arrangement with Indian (Of America) had ended,

so Enfield was no longer sold under the Indian

marquee (Royal Enfield rival, British AMC

company, acquired the Indian Sales Corp. in 1959).

However, in 1961, Eddie Mulder won the Big Bear

Enduro on an Enfield, which

gave the company a new foothold in the U.S. under its own name and started a new

marketing of the product. Models available in the U.S. that year included a 700cc

twin and six street scramblers, ranging from the

250cc Hornet to the 500cc Fury (essentially the

single-cylinder Bullet) to the 700cc Interceptor.

Elliot Shulz also dominated the half-mile dirt track

in Los Angeles on an Enfield that year. Enfield won

31 out of 39 races in 1961 and had several

spectacular victories in 1964.Royal Enfield had arrived on The Continent! But things

at Redditch had hit a bad patch.

1963-But back home in Madras…By 1970, Enfield India was a company established

in its own right, and with a production line going full steam, the need for collaboration

with Enfield of the UK and Villiers of the UK was no longer seen. But the Bullet flew

true and strong. A number of changes had already been made to the tin ware on the

Bullet. Mudgaurd design took on different forms, taking into account the wet, slushy

and messy road conditions during the Indian monsoon. The Magdyno also gave way

to the alternator ‘Delco’ ignition system. And front and rear hubs were designed to

12 
 
provide more efficient cooling for Indian conditions, and thus improve braking

performance.

ALL THAT ENFIELD'S ISN'T A BULLET (1971 - 1980)

1973 The Mini Bullet-With the success of the

Sherpa, Enfield India launched the 173cc Villiers-

powered Crusader in India in 1973. A totally

indigenous effort, this small motorcycle used many

Bullet chassis parts, including fork legs and

mudguards, and instantly found a market among the many that wanted a Bullet, but

were diffident about handling it’s weight and size. The Mini Bullet too was introduced

this year. This motorcycle was a 200cc two stroke sporting ‘contemporary’ design.

Enfield India attempted to reach out to the young market, providing them with a

zippy, reliable and economical two-stroke.

TOUGH TIMES AHEAD (1981 - 1990)

1983 Here comes the Lightweights-Like the adage

that goes, "when the going got tough, that's when

the tough get going". Enfield India got squarely into

the fray with a slew of lightweight machines. The 50cc Silver Plus step-through and

Explorer motorcycle are launched. Powered by the Zundapp-engineered 50cc, 6.5hp

two stroke motors, these bikes redefined the entry-level segment. The Silver Plus,

initially a two-speed and then later a three speed, found a ready market not only

among the young office going male, but among an increasing number of women who

found the step-through design convenient. The Explorer, with its contemporary bikini

13 
 
fairing and 'fastback' tailpiece. Both bikes sported alloy wheels, a first in India. Close

on the heels of the little wonders came the Fury 175. Powered by a 175 Zundapp

two-stroke engine with a five-speed gearbox, this refreshingly quick motorcycle came

fitted with a hydraulic disc brake. Again a first in the country. And a bike, many feel,

much too early in INDIA.

1984 Brand New Vintages-The 80s also saw the

Bullet in many different avatars. The Deluxe models

appeared, in resplendent chrome and metallic colors,

and 12 volt electrical were offered as an option, to

aid in brighter lighting and easier starting. It was also

the year when Enfield India grew confident enough about their flagship product to

begin sending 'coals back to Newcastle'. Owing to their status as 'brand new

vintages', Enfield Bullets found a strong niche market in the UK and Europe, among

people looking to come back to motorcycling.

ENFIELD BECOMES ROYAL ENFIELD (1991 - 2000)

1990 Heavy Fuel-The 1990's saw many revolutionary models from the company. The

Taurus Diesel was the first production Diesel motorcycle in the world.

1993 Bullet 500-The Bullet 500 was launched in June

this year. It went on to become the most coveted

model.

1994 Eicher acquires Enfield-In March the ailing company got a new lease of life

when Eicher group acquired Enfield India Company. The company name changed to

Royal Enfield Motors Limited.

14 
 
ROYAL ENFIELD (2001 - 2010)

2001-The Dare Devils, the motorcycle display team of the Corps

of Signals, Jabalpur forms a Human Pyramid of 201 men on 10 Enfield 350cc bikes

and rides a distance of more than 200 meters.

2002- India’s first Cruiser – The ‘THUNDERBIRD’- is

launched.BBC Wheels awards it ‘The Best Cruiser

2002’ title. The Bullet Machismo enters commercial

production. Dan Holmes and Johnny Szoldrak won the National Road Race

Championship (60’s Class) on a Bullet.

2003

The first ‘RIDER MANIA’ gets together is held in Goa.

REDS are formed in Pune.

The Bullet enters the Automotive ‘Hall of Pride’ at the

ICICI Overdrive awards.

1000 Riders descend on Redditch for the Royal Enfield Owners Club 25th

Anniversary.

Royal Enfield is one of the top ten 125-500 cc brands in UK.

2004-The 2004 Bullet Electra is launched.

The retro styled Bullet Machismo is rated ‘No.1Cruiser’

in TNS Auto car survey.The Bullet Electra International

with a lean-burn engine is launched in the UK.34 men ride simultaneously on a

Bullet, setting a new world record.

15 
 
2005

Royal Enfield India Celebrates 50 glorious

years of motorcycling and unveils a blueprint

for the future. The 2005 Bullet Electra features

a revolutionary 5-Speed left side gear shift that makes the marquee more accessible

to motorcyclists. The Legend rides on…

2006

Royal Enfield develops a fully integrated Twin Spark, 5-Speed engine that delivers a

dramatic increase in performance and efficiency. The new engine will power all

domestic and International models from 2007 onwards.

2007

Royal Enfield launches the all new limited edition

Machismo 500LB with customized accessories.

The legendary Bullet 350 needs no introduction.

Now Bullet 350 is with all new UCE engine. This

classic machine has kept place with advances in

engineering and ergonomics without diluting its

impeccable pedigree.

A long wheel base and bigger tires provide increased stability and road grip, making

it ideal for long distance travel.Its aristocratic black &

gold livery and thumping engine beat remind

16 
 
passers-by that they are in the presence of automotive royalty.

2008

The Thunderbird Twins Park will be the first model to feature Royal Enfield’s

revolutionary Unit Construction Engine. All the well loved features of the Thunderbird

have been retained and enhanced in some cases. Also, the twin benefit of improved

performance and engine efficiency makes this motorcycle

hard to beat in terms of pure riding pleasure and visual

delight. The evolutionary mix of old and new features in this

motorcycle will surely delight its owners.

2009

The smaller twin of the Classic 500, the

Classic 350 will hold its own against any

other motorcycle and then pull some

more. The Classic 350 shares its power

plant with the Legendary Thunderbird.

The torque to flatten mountains and the fuel efficiency to cross entire ranges comes

in the same understated yet charming styling. This is a motorcycle that does not

need to shout to be heard. Born of a rich heritage and bred with Royal Elegance this

350cc thumper has all the qualities of a typical Royal Enfield. Appreciated then,

appreciated now...

Why ride a lesser bike. Nothing more to be said.

17 
 
The Classic

500 comes to India. Armed with a potent fuel injected 500cc engine and clothed in a

disarmingly appealing post war styling, this promises to be the most coveted Royal

Enfield in history. For those who want it all. The power, the fuel efficiency, the

reliability and simple, yet drop dead gorgeous classic styling. The classic turns heads

not because it wants to but because it can’t help it. You will appreciate the beat not

just for the music it creates but also for the muted feeling of strength and power that

it signifies. The view is simply better when you are astride a Royal Enfield Classic

500 – whether moving or still. Nothing more to be said.

Army's stunt riders break record- ARMY

PERSONNEL IN AGRA SET RECORD OF CARRYING 48

PERSONS ON ONE BIKE Indian Army personnel broke a world

record by being the only team in the world to cross a

staggering distance of 1000 meters carrying 48 persons on a

single moving 500 cc Royal Enfield motorcycle. 'Tornadoes',

the motorcycle display team of Army Service Corps today broke two world records

by being the only team to achieve a staggering distance of 1100 meters with 54

persons on a single bike. They broke the record of Corps of Military Police who

carried 48 persons on a single moving 500 CC motorcycle here recently. The team

18 
 
while exhibiting extraordinary skill, courage, endurance and mental strength, entered

the annals of record books by performing this breathtaking feat on a 500 CC Royal

Enfield motorcycle at the Runway of Air Force Station Yelahanka in the presence of

a large number of military and civil dignitaries. The 'Tornadoes' was raised in 1982

after having given a stupendous display of daredevilry in the 1982 Asian Games.

"Since then the men of the Tornadoes Team by their sheer grit, determination and

spirit of adventure have created a niche for themselves by rewriting various records,"

the release said. The team at one point of time had achieved the distinction of

holding seven world and national records of varying degrees of complexity and

fortitude, it said.

LIMITATIONS OF THE STUDY

 This research is geographically restricted to Agra city only. Hence the result

cannot be extrapolated to other places.

 The study is restricted only to the organized sector of two wheeler industry.

 Sample size was confined to 75 respondents keeping in view of time and cost

constraints.

 Findings are based on sample survey. The information executed by

respondents may or may not be true because some respondents may not be

serious. However all possible has been made to collect the information as

authentically as possible.

 All interview questions are undisguised or direct. Hence there is a scope for

the respondents to be biased or pretentious.

19 
 
 This project has been taken up at the undergraduate level and the knowledge

and experience of the student is limited and hence may not be professional

enough.

ORGANISATIONAL STRUCTURE

GENERAL MANAGER
(Proprietor)

Sales Manager Service Manager Service Manager

Showroom Service Accountant


In charge Supervisor

Team Service Assistant

Manager Staffs Accountant

Sales

Representative

20 
 
SWOT ANALYSIS
MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET

GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES

A Bajaj, Hero Honda Highly diversified - High buyer power

Aggressive promotion - High competitive

rivalry

- High entry barriers

B TVS Selectively diversified - Low entry barriers

Aggressive - Narrow product lines imply


Promotion that aggressive promotions
can eat into market share

C Honda, Yamaha Selectively diversified -High threat of

Moderate Promotion substitution (Rs 1 lakh car)

- Low entry barriers

D Royal Enfield Highly specialized - Low buyer power, high


brand loyalty
Low Promotion
- Product diversification will
imply risk of brand dilution

21 
 
SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY

STRENGTHS WEAKNESSES

 Established brands  Extremely price sensitive


 Strong Brand Name  Short PLC
 Fuel efficient  High R and D costs
 Style statement
 Convenient in heavy traffic
 Cheap and affordable
 Easy and cheap finance availability
 Patents
 Good reputation among customers

OPPURTUNITIES THREATS

 Growing premium segment  The Rs.1 Lakh car


 Increasing dispensable income  Cut throat competition
 Environmental concerns  Increasing number of players in the
 Exports increasing market
 Very strong demand in the 100cc.  Rising raw material costs
segment dominated by limited players.  Increasing rates of interest on finance

22 
 
SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA

STRENGTHS WEAKNESSSES

 Size and scale of parent company  Small showrooms


 Effective Advertising Capability  Not much emphasis on aggressive
 Committed and dedicated staff selling
 High emphasis on R and D  Weak product diversity
 Experience in the market
 Established brand
 Established market channel
 Power, Speed & Acceleration

OPPURTUNITIES THREATS

 Growing premium segment  Cut throat competition


 Global expansion into the Caribbean  Increasing number of players in the
& Central America market
 Expansion of target market (include  Rising raw material costs
women)  Increasing rates of interest on finance
 Increasing dispensable income
 1st mover advantage

23 
 
 
 
 
RESEARCH 
DESIGN 
 
 Methodology Adopted 
 Objective of the Study 
 Tools & Techniques Used 

24 
 
INTRODUCTION

Royal Enfield one of the popular brand and highest selling bike in India and

outside India (USA, Europe, Australia etc). Royal Enfield motorcycles had been sold

in India from 1949. In 1955, the Indian government looked for a suitable motorcycle

for its police and army, for use patrolling the country's border. As far as the

motorcycle brand goes, though, it would appear that Royal Enfield is the only

motorcycle brand to span three centuries, and still going, with continuous production.

Product range has widened and the customer has evolved.

STATEMENT OF THE PROBLEM

Customer satisfaction plays a crucial role in enabling an organization to

change and develop with customers. Keeping the existing customer contended is

generally much easier, takes less time and involves less expense. The reason for

this is that it takes more time to find new prospective customer. In this context study

is conducted with special reference to customer satisfaction. A company can earn

more profits only when it has strong customer care towards product and services

offered by the company. So to have strong customer care it has to provide a

competitive price further advertising to increase.

 
 
 
 
 
25 
 
 
 
 
 
 
 

METHODOLOGY
ADOPTED

26 
 
RESEARCH METHODOLOGY

The research will be carried out in various phases that constitute an

approach of working from whole to part. It includes subsequent phases trying to go

deeper into the user’s psyche and develop a thorough understanding of what a user

looks for while buying a bike.

The first phase is completely internal where it is stormed over the most effective

route of action, considering that Bullet users in Agra are more in number.

The second phase is with some of the seasoned bikers who have been using Bullets

for some time now and are generally known and respected amongst the Bullet

community.

The third phase is with some respondents who will be interviewed with the help of

questionnaire keeping in mind the time and cost constraints.

27 
 
 
 
 
 
 
 

OBJECTIVE OF
THE STUDY

28 
 
OBJECTIVES OF THE STUDY

1. To understand the reasons for purchasing Royal Enfield bikes.

2. To know about the experience after purchase relating various parameters

(Service, bike performance, mileage etc).

3. To ascertain the barriers to purchasing a Bullet for a prospective customer.

4. To ascertain the factors that affects the choice of a Bullet as a motorcycle for

common man.

5. To propose an effective Promotional campaign plan for brand Royal Enfield.

6. To determine the customer’s satisfaction regarding bikes and after sales

service.

SCOPE OF THE STUDY

This study includes Customer’s response and awareness towards the brand,

products and services of Royal Enfield. The results are limited by the sample size 75

numbers and therefore the opinion of only selected customers is taken into

consideration. Mainly this study is conducted in Agra and the scope is limited.

OPERATIONAL DEFINITIONS

1. Customer- A customer (also known as a client, buyer, or purchaser) is usually

used to refer to a current or potential buyer or user of the products of an

individual or organization, called the supplier, seller, or vendor.

2. Customer Satisfaction- A business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage

29 
 
of total customers, whose reported experience with a firm, its products, or its

services (ratings) exceeds specified satisfaction goals."

3. Respondents- A person who replies to something, esp. one supplying

information for a survey or questionnaire or responding to an advertisement.

4. Objective- An end that can be reasonably achieved within an expected

timeframe and with available resources.

5. Bike- A motor vehicle with two wheels and a strong frame.

6. Buying- To acquire in exchange for money or its equivalent purchase.

30 
 
TOOLS &
TECHNIQUES USED

31 
 
TOOLS OF DATA COLLECTION

The information relevant for study was drawn from Primary data collected through

survey method, which alone was not sufficient. Hence Secondary data was collected

to study successfully.

 Primary data- In order to find out customer satisfaction regarding bikes of

Royal Enfield Primary Data was collected by personally visiting the

dealerships and showrooms. With the help of a well laid questionnaire, I took

the feedback from the customers who were coming for the services of their

bikes at the dealerships. As well as I contacted some of the customers

through telex calling by taking the data about the customers from the

customer data register of the dealership. I interviewed them and discussed

with the showroom staff as well as with the employees at Royal Enfield which

helped me to prepare the research Report.

 Secondary data- The Secondary Data collection involved internet search,

browsing magazines, newspapers and articles and papers related to the two

wheeler industry in India. Numerous Journals and books related to the topic

were also browsed to understand the dynamics of the industry.

SAMPLE DESIGN

The research was carried out in various phases that constituted an approach

of working from whole to part. It included subsequent phases trying to go deeper into

the user’s psyche and develop a thorough understanding of what the user looks for

while buying a bike. In order to get a perspective from non-Bullet riders as to what

are the reasons for not choosing a Bullet, I administered the same questionnaire to

riders who used other motorcycles keeping in mind the time and cost constraints. For

32 
 
the customer satisfaction study a sample of 75 persons was chosen from the in Agra

city. The sample was judgmental and methodology was convenient random

sampling.

Size of Sample 75

Sampling technique Convenient Random Sampling

method

Location from which samples were taken Agra city

33 
 
DATA ANALYSIS &
INTERPRETATION

34 
 
PLAN OF ANALYSIS

 Raw Primary data has been collected with help of questionnaire. The raw data

has been tabulated with the help of table. From the tables, concept, analysis

and inferences are drawn which in turn was used for interpretation. Based on,

these charts were prepared to better pictorial understanding of the study.

 From the set of inferences and interpretation, conclusion have been drawn

which is followed by suggestions, keeping the objectives in mind throughout

the study.

35 
 
GRAHICAL
PRESENTATION OF
THE DATA

36 
 
TABLE No.1

TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED


ON AGE

AGE NO. OF PERCENTAGE


RESPONDENTS
20-24 30 40%

25-29 19 26%

30-34 14 18%

Above 35 12 16%

TOTAL 75 100%

Analysis

From the above table it is clear that 40% of the respondents are aged between 20

and 24, 26% between 25 and 29, 18% between 30 and 34 and only 16% aged above

35 years.

Interpretation

It is revealed that majority of respondents are between 20 and 29 years. From this

we can conclude younger generation and middle age are more interested in Royal

Enfield may be because this is the age where they start earning.

37 
 
GRAPH
H No.1

GRAPHH SHOWIING-THE PROFILE


E OF THE
E RESPONDENTS BASED
ON AG
GE

16%

40%
18%

20‐24

26%
% 25‐29
30‐34
A
Above 35

38
TABLE No.2

TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED


ON GENDER

GENDER NO. OF PERCENTAGE


RESPONDENTS
MALE 69 92%

FEMALE 6 8%

TOTAL 75 100%

Analysis

From the above table it is clear that 92% of respondents were male and female

respondents constituted just 8% of total responses.

Interpretation

It is clear that most of the users of Royal Enfield are males mostly because of the

manly look of the bikes.

39 
 
GRAPH
H No.2

GRAPHH SHOWIING-THE PROFILE


E OF THE
E RESPONDENTS BASED
ON GE
ENDER

8%

Male
Female
92%

TABLE
E No.3

TABLE
E SHOWIN
NG-THE OCCUPA
O ATION OF
F RESPON
NDENTS

O
OCCUPAT
TION NO.OF ERCENTA
PE AGE
RESPONDEENTS
STUDEN
NT 33 44%

GOOVERNMMENT 5 6%
SERVIC
CE
EX--SERVICE
EMEN 3 4%

PR
ROFESSIO
ONAL 21 28%

SEL
LF-EMPLOYED 13 18%

TOTAL
L 75 100%

40
Analysis

From the above table it is clear that 44% of the respondents were students pursuing

their graduation or post graduation studies and 28% were professionals. 18% of the

respondents were self employed, 4% were ex-serviceman and 6% belonged to

government services.

Interpretation

It is clear that users are mostly Professional males, 20-35 years of age including

some students because of the looks and power of the bike.

41 
 
GRAPH
H No.3

GRAPH
H SHOWIING-THE OCCUPA
ATION OF
F RESPO
ONDENTS
S

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

N
No. of Respond ents

Student Govt sservice Exx‐servicemen Proffesional Self‐em


mployed
No. off Respondents 44% 6
6% 4% 28% 18
8%

42
TABLE No.4

TABLE SHOWING-THE ANNUAL INCOME GROUP OF


RESPONDENTS

INCOME GROUP NO. OF PERCENTAGE


RESPONDENTS
LESS THAN 1,20,000 39 52%

1,20,001-3,60,000 10 14%

3,60,001-7,20,000 14 18%

ABOVE 7,20,000 12 16%

TOTAL 75 100%

Analysis

From the above table it is clear that 52% of the respondents had an annual income

of lesser than 1,20,000, 18% had income between 3,60,001 and 7,20,000, 16%

earned more than 7,20,000 per annum and 14% had income between 120001 to

3,60,000.

Interpretation

It shows that Royal Enfield is placing their products in the appropriate and

reasonable price range and the people of income bracket less than 1,20,000 can

easily afford this Bike.

43 
 
GRAPH
H No.4

GRAPH
H SHOWIING-THE ANNUAL
L INCOME
E GROUP
P OF
RESPO
ONDENTS
S

16%

18%

52%

14%
Less than 1,2
20,000
1,20,001‐3,6
60,000
3,60,001‐7,2
20,000
Above 7,20,0
000

TABLE
E No.5

TABLE
E SHOWIN
NG-THE MODEL
M O
OF THE ROYAL
R ENFIELD THE
T
RESPO
ONDENTSS PRESE
ENTLY OW
WN
MODEL N OF
NO. PERCE
ENTAGE
RESP
PONDENTS
S
B
BULLET 50
00 11 14
4%

TH
HUNDER BIIRD 7 10
0%

BUL
LLET ELEC
CTRA 15 20
0%

MA
ACHISMO 500
5 6 8
8%

B
BULLET 35
50 16 21
1%

44
CLASSIC 500/350 17 23%

OTHERS 3 4%

TOTAL 75 100%

Analysis

From the above it is clear that 14% of the respondents own Bullet 500, 10% of them
own Thunder Bird, 20% of them own Bullet Electra, 8% of them own Machismo 500,
21% of them own Bullet 350 and 23% of them own Classic 500/350.

Interpretation

It clearly shows that customers are not attracted to only one particular model due to
the variants available and because the Classic 500/350 are the newly released
models they are fast moving now.

45 
 
GRAPH
H No.5

GRAPH
H SHOWIING-THE MODEL OF THE ROYAL
R E
ENFIELD THE
RESPO
ONDENTS
S PRESEENTLY OW
WN

1
18

1
16

1
14

12

10

6
Bullet 5
500
4
Thunde
er Bird
2 Bullet EElectra

Machismo 
0
500
Bullet 3
350
No. of 
ndents
Respon Classic 
500/350

TABLE
E No.6

TABLE
E SHOWIN
NG- THE PURCHA
ASING WA
AY OF TH
HE CUST
TOMERS

PUR
RCHASED
D BY NO. OF PERC
CENTAGE
E
RESPONDEN NTS
CASH 54 72%

LOAN 21 28%
TOTAL 75 1
100%

46
Analysis

From the table it clearly shows that the products of Royal Enfield are in the

acceptable price range, as we can see that purchasing way of the 72% respondents

are leading in the CASH sector and 28% on loan basis. Customers are ready to pay

for better facilities and technology and they feel that all bikes deserves that price

which Royal Enfield is offering.

Interpretation

It is clear that customers are easily affording the price of Royal Enfield bikes and

they are not feeling much problem with the amount.

47 
 
GRAPH
H No.6

GRAPH
H SHOWIING- THE
E PURCHA
ASING WAY
W OF T
THE CUST
TOMERS

6
60

5
50

4
40

3
30

2
20

1
10

0
CASH  LOAN
No
o.of Respondents 54 21

TABLE
E No.7

TABLEE SHOWIN
NG- THE NO OF R
RESPOND
DENTS CONSIDERRING
OTHERR MOTOR
RCYCLE WHILE
W P
PURCHASSING ROY
YAL ENFIIELD
BIKE

YES/NO
O N
NO. OF PERCE
ENTAGE
RESP
PONDENTTS
YES 27 3
36%

NO 48 6
64%

TOTAL
L 75 100%

48
Analysis

From the table it clearly shows that 36% of the respondents did go consider or

checked for an alternative motorcycle and 64% of them did not consider any other

motorcycle while purchasing their Royal Enfield bike.

Interpretation

It is clear that majority of the customers directly chose Royal Enfield as their bike and

dint even have a look at the nearest alternative bike and this shows the loyalty of the

customers towards the brand Royal Enfield.

49 
 
GRAPH
H No.7

GRAPHH SHOWIING- THE


E NO OF RESPON
R DENTS CONSIDE
C RING
OTHERR MOTOR
RCYCLE WHILE
W P
PURCHAS
SING ROY
YAL ENFIIELD
BIKE

64%

70%
36%
60%

50%

40%

30%

20%

10%

0%
%

YES

NO

No. of Resp
pondents

TABLE
E No.8

TABLE
E SHOWIN
NG- THE SOURCEE OF AWA
ARENESS FOR
CUSTO
OMERS WHILE
W BU
UYING TH
HEIR ROY
YAL ENFIIELD BIK
KE

M
MEDIA NO
O. OF PERCEN
NTAGE
RESPO
ONDENTS
S
NEW
WSPAPER
RS 6 8%
%
MAG
GAZINES
S 2
24 32%
%
FR
RIENDS 1
11 14%
%
ROA
ADSHOW
W 7 10%
%
TV
V ADDS 5 6%
%

50
WEBSITE/BLOGS 15 20%
SHOWROOM 7 10%
TOTAL 75 100%

Analysis

As we can see here the major promotional tool which is influencing the customers is
Magazines and Website which is around 32% and 20% respectively, after that the
source of awareness among customers is a mixed response where in 14% from
friends, 10% each from road shows and showroom, finally newspapers consists 8%
and 6% from Television adds which is very poor.

Interpretation

It clearly shows that Advertisements are rarely recalled and are highly ineffective
amongst non-Bullet riders. It’s clear that Royal Enfield should concentrate on its
advertising campaign to reach the customers.

51 
 
GRAPH
H No.8

GRAPH
H SHOWIING- THE
E SOURCE OF AW
WARENESSS FOR
CUSTO
OMERS WHILE
W BU
UYING TH
HEIR ROY
YAL ENFIIELD BIK
KE

35%
30%
25%
20%
15%
10%
5%
0%

friends 
newspaper magazines
m aand  roadshow tv addss website showroom
relations
Respondentss 8% 32% 1
14% 10%
% 6% 20% 10%

52
TABLE No.9

TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD AFTER


PURCHASE OF BIKE

MILEAGE NO. OF PERCENTAGE


RESPONDENTS
45km/lit & Above 5 6%

40-45 16 22%

35-40 26 34%

30-35 18 24%

Below 30 10 14%

TOTAL 75 100%

Analysis

From the above table it is clear that 56% of respondents gain mileage of 35-45km/lit

which is really good, 24% of them between 30-35km/lit, 14% below 30km/lit and 6%

above 45km/lit.

Interpretation

It clearly shows that mileage of the Royal Enfield bikes is economical & mileage

between 35 and 40 that too on Indian roads with heavy traffic is a great deal.

53 
 
GRAPH
H No.9

GRAPH
H SHOWWING-THE
E MILEA
AGE OF ROYAL ENFIELD
D AFTER
R
PURCH
HASE OF
F BIKE

30
0

25
5

20
0

15
5

10
0

0
45km//lt 4
40‐45 35‐40 30‐35 Belo
ow 30
No.. of Responden
nts 5 16 26 18 1
10

54
TABLE No.10

TABLE SHOWING- THE BREAKDOWN OF BIKES SINCE


PURCHASE OF VEHICLE

FREQUENCY OF NO. OF PERCENTAGE


BREAKDOWN RESPONDENTS
VERY OFTEN 8 10%

RARELY 19 26%

NOT AT ALL 48 64%

TOTAL 75 100%

Analysis

From the above table it is clear that 64% of the respondents say that there is no

problems or breakdown of their bikes after purchase, 26% say rarely their bikes get

repaired and 10% of respondents say their bikes breakdown very often.

Interpretation

It is clear that most of the Royal Enfield bikes doesn’t breakdown at all and it is not

problematic and not involved into repair always.

55 
 
GRAPH No.10

GRAPH SHOWING- THE BREAKDOWN OF BIKES SINCE


PURCHASE OF VEHICLE

10%

26%

64%

Very often
Rarely
Not at all

56 
 
TABLE No.11

TABLE SHOWING- THE PLACE OF PURCHASE OF ROYAL


ENFIELD BIKES & THEIR SATISFACTION LEVEL TOWARDS IT

PLACE OF NO. OF PERCENTAGE


PURCHASE RESPONDENTS
SHOWROOM 48 64%
DIRECT SECOND 22 30%
HAND
USED VEHICLES 5 6%
DEALERSHIP
TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE


SATISFACTION RESPONDENTS
YES 57 76%
NO 18 24%
TOTAL 75 100%

Analysis
64% of the Bullet riders prefer to buy their bike from showroom only and 30% may
buy it Second hand dircetly. But none of them buys the bike through brokers which
shows that reliability of an outside party is low while making the purchase decision
among the Bullet riders.Also 76% of respondents are very much satisfied with the
place of purchase of their bike and 24% are not at all satisfied.

Interpretation
It is clear that most of the respondents prefer to buy their bike brand new from
showroom only and majority of the customers are very much satisfied with the place
of purchase of their Royal Enfield bike. This also shows there is more demand for
new bikes.

57 
 
GRAPH
H No.11

GRAPHH SHOWIING- THE


E PLACE OF PURC
CHASE OOF ROYAL
L
ENFIEL
LD BIKES
S AND TH
HEIR SAT
TISFACTIION RESP
PONSE
TOWAARDS IT

48 No. pf Respo
ondents
50
0
45
5
40
0
35
5
30
0 2
22
25
5
20
0
15
5 5
10
0
5
0
Show
wroom Direct second hand Used vehicless 
dealership

Point of sattisfactio
on

24
4%

Satisfied
d
Not Satissfied

76%

58
TABLE No.12

TABLE SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE


MARKET

AVAILABILITY NO.OF PERCENTAGE


RESPONDENTS
READILY AVAILABLE 51 68%

DON’T GET THEM 8 10%


READILY
DON’T HAVE GOOD 12 16%
SPARES SUPPLY
MAJOR HEADACHE 4 6%

TOTAL 75 100%

Analysis

From the above it is clear that 68% of the respondents are satisfied with the

availability of spare parts and remaining 32% of respondents are discontent with the

availability of spare parts.

Interpretation

It is clear that majority of the respondents are satisfied with spare parts availability

and we can say that Royal Enfield has good distribution channel for spare parts in

the city.

59 
 
GRAPH No.12

GRAPH SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE


MARKET

6%

16%

10%

68%

Readily Available
Don't get them readily
Don't have good spares supply
Major headache

60 
 
TABLE No.13

TABLE SHOWING- THE MAJOR PROBLEMS AFTER PURCHASING


ROYAL ENFIELD BIKE
PROBLEMS NO. OF PERCENTAGE
RESPONDENTS
HIGH MAINTENANCE 11 14%

POOR AFTER SALES 7 10%


SERVICE
HIGH PRICE 15 20%

LOW MILEAGE 8 10%

NOISY VEHICLE 3 4%

NO PROBLEM 31 42%

TOTAL 75 100%

Analysis

Maximum number of people (42%) described that there is no problem with the bike
after purchase, 20% had an issue with the price range, third biggest problem was
14% of them felt high maintenance was required for the bike, only 4% of them felt it
was noisy vehicle and while 10% of respondents each refrained because of the low
mileage and the poor after sales service of Bullet.

Interpretation
It is clear that majority of the people who choose Royal Enfield as their bike don’t
have any problems or issues with their bike’s performance.

61 
 
GRAPH
H No.13

GRAPH
H SHOWIING-THE MAJOR PROBLE
EMS AFTE
ER PURC
CHASING
ROYAL
L ENFIEL
LD BIKE

14%

10%
%
42%

20%
High maintainance

Poor after saales 
service
High Price

4% Low mileagee
10%
Noisy vehiclee

TABLE NO.14

TABLE SHOWINGG- THE RAT


TING BY THE RESPO
ONDENTS FOR THEIR
R
SATISFACTION LEVEL WITH RESPECCT TO POW
WER AND PICK
P UP

RATING
G NO. OF PERC
CENTAGE
E
RESPONDEN NTS
POOR 4 6%

A
AVERAG
GE 8 10%
GOOD 20 26%
E
EXCELLE NT 43 58%

62
TOTAL 75 100%

Analysis

From the above table it is clear that 6% of the respondents rated very poor and they
were not at all satisfied, 10% of them rated average, 26% of them rated good and
maximum number of respondents i.e. 58% rated excellent and these respondents
were very much satisfied with their bikes power and pick up.

Interpretation

It is clear that majority of the respondents are satisfied with their bikes power and
pick up. This shows Royal Enfield has an excellent satisfaction level within the
customer.

GRAPH No.14

GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR


THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND
PICK UP

63 
 
45

40

35

30

25 Excellentt

20 G
Good
15

10 Average

5
Poo
or
0

No. of Reespondents

No. of Respondents
Poor 4
Averaage 8
Good 20
Excellent 43

TABLE
E No.15

TABLEE SHOWIN
NG-THE RATING
R BY THE RESPON
R DENTS FOR
F
THEIR SATISFA
ACTION LEVEL
L W
WITH RESPECT TO
O COMFO
ORT AND
SAFETTY

RATING
G N
NO. OF PERC
CENTAGE
E
RESP
PONDENTS
POOR 7 9%

A
AVERAG E 12 1
16%

GOOD 24 3
32%

64
EXCELLENT 32 43%

TOTAL 75 100%

Analysis

From the above table it is clear that 9% of the respondents rated very poor and they
were not at all satisfied, 16% of them rated average, 32% of them rated good and
maximum number of respondents i.e. 43% rated excellent and these respondents
were very much satisfied with their bikes comfort and safety.

Interpretation

It is clear that majority of the respondents are satisfied with their bikes comfort and
safety. This shows Royal Enfield has an excellent satisfaction level within the
customers.

65 
 
GRAPH
H No.15

GRAPHH SHOWIING-THE RATING BY THE RESPON


NDENTS FOR
F
THEIR SATISFA
ACTION LEVEL
L W
WITH RESPECT TO
O COMFO
ORT AND
SAFETTY

9%
%

16%

43%

Poor

Averagge

32%
% Good

Exellen
nt

66
TABLE No.16

TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR


THEIR SATISFACTION LEVEL WITH RESPECT TO AFTER SALES
SERVICE

RATING NO. OF PERCENTAGE


RESPONDENTS
POOR 11 14%
AVERAGE 13 18%

GOOD 27 36%

EXCELLENT 24 32%

TOTAL 75 100%

Analysis

From the above table it is clear that 14% of the respondents rated very poor and they
were not at all satisfied, 18% of them rated average, 36% of them rated good and
maximum number of respondents i.e. 32% rated excellent and these respondents
were very much satisfied with the after sales service.

Interpretation

It is clear that majority of the respondents are satisfied with their after sales service
and few respondents are not at all satisfied. This shows Royal Enfield has a good
satisfaction level within the customers.

67 
 
GRAPH
H No.16

GRAPHH SHOWIING- THE


E RATING
G BY THE
E RESPON
NDENTS FOR
THEIR SATISFA
ACTION LEVEL
L W
WITH RESPECT TO
O AFTER SALES
SERVICE

30 27

24

25

20

13
15 11

10

0
Poor Average Good  Excellen
nt

N
No. of Respond
dents

TABLE
E No.17

TABLE
E SHOWINNG- THE RESPON
NDENTS OPINION
O OF THE MAJOR
BARRIIER FOR NOT PUR
RCHASIN
NG ROYA
AL ENFIEL
LD BIKES
S BY
NON-B
BULLET RIDERS
R
P
PROBLEM S NO. OF PERCENTAGE
RESP
PONDENTTS
HIGH
H MAINTEN
NANCE 11 1
14%
POOR
R AFTER SALES
S 7 1
10%
SERVICE
E
H
HIGH PRIC
CE 15 2
20%

68
LOW MILEAGE 8 10%
NOISY VEHICLE 3 4%
POOR PROMOTION 31 42%
TOTAL 75 100%

Analysis

Maximum number of people (42%) described that there is very poor promotion for
the Royal Enfield, 20% had an issue with the price range, third biggest problem was
14% of them felt high maintenance was required for the bike, only 4% of them felt it
was noisy vehicle and while 10% of respondents each refrained because of the low
mileage and the poor after sales service of Bullet.

Interpretation

It is clear that People who choose not to buy Bullets do so because of low promotion,
high price and maintenance. So Royal Enfield should concentrate on their
promotional campaigns and make sure it reaches the common man.

69 
 
GRAPH
H No.17

GRAPHH SHOWIING- THE


E RESPON
NDENTS OPINIONN OF THE
E MAJOR
BARRIIER FOR NOT PUR
RCHASINNG ROYA
AL ENFIEL
LD BIKES
S BY
NON-B
BULLET RIDERS
R

14%

42
2%

10%

Higgh maintainencce
20%
Poor after sales sservice

Higgh price
4%
Low
w mileage
10%

No
oisy vehicle

Poor Promotion

70
TABLE No.18

TABLE SHOWING - THE PLACE OF SERVICE OF RESPONDENTS


BIKE

PLACE OF SERVICE NO. OF PERCENTAGE


RESPONDENTS
SHOWROOM 34 45%

WELL KNOWN 29 38%


BULLET MECHANIC
NEARBY GARAGE 4 6%

SELF SERVICE 8 11%

TOTAL 75 100%

Analysis

From the above table we can say that 45% of the respondents prefer their service of

their bike in showroom, 38% of them with well known bullet mechanic, 6% of them in

nearby garage and 11% of them prefer self service to their bike.

Interpretation

It is clear that most of the respondents service their bikes in the showrooms and also

with a well known bullet mechanic. There is no much difference but this shows

people have less trust with the showroom service.

71 
 
GRAPH
H No.18

GRAPHH SHOWIING- THE


E PLACE OF SERV
VICE OF R
RESPONDENTS
BIKE

Show
wroom W
Well known bul let mechanic Nearby gaarage Selff service

11%

6%

45%

38%

TABLE
E No.19

TABLEE SHOWIN
NG- THE RESPONNDENTS OPINION
O AND LEV
VEL OF
SATISF
FACTION
N ABOUTT THE COMPANY TAKING
T A
ACTION
TOWAARDS COMMPLAINTTS LODGED BY TH
HE CUST
TOMERS

YES/NO
O NO. OF PERCENTAGE
E
RESP
PONDEN NTS
YES 55 7
73%
NO 20 2
27%
TOTAL
L 75 100%

72
RESPONSE FOR NO. OF PERCENTAGE
SATISFACTION RESPONDENTS
YES 49 66%
NO 26 34%
TOTAL 75 100%

Analysis
The above table shows that 73% of the respondents accept that the company takes
action towards the complaints lodged by the customers and 27% disagree for the
same. Also the satisfaction level is 66% by the respondents and 34% are not
satisfied.

Interpretation
It is clear that most of the respondents agree that the company takes action towards
the complaints lodged by the customers and also the satisfaction level of the
customers is very high. This shows Royal Enfield checks at the complaints
registered by their customers on regular basis to maintain its brand value.

73 
 
GRAPH
H No.19

GRAPHH SHOWIING- THE


E RESPONNDENTS OPINION
N AND LEEVEL OF
SATISF
FACTION
N ABOUT T THE COMPANY TAKING
T A
ACTION
TOWAARDS COM
MPLAINT TS LODGED BY TH
HE CUSTTOMERS

55

60

40
20

20

Yes

No

No. of R
Respondents

Point of satisfac
ction

No
34%

Yes
66%

74
TABLE No.20

TABLE SHOWING- THE RESPONDENTS OPINION ABOUT


PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE
ROYAL ENFIELD CLUB

YES/NO NO. OF PERCENTAGE


RESPONDENTS
YES 62 82%

NO 13 18%

TOTAL 75 100%

Analysis

The above table shows that 82% of the respondents are wants to participate in the

Rider Mania and 18% of them are not interested.

Interpretation

It clearly shows that majority of the respondents are very much interested in Rider

Mania and also shows that respondents are very passionate Enfield fans.

75 
 
GRAPH
H NO.20

GRAPHH SHOWIING- RES


SPONDEN NTS OPIN
NION ABO
OUT
PARTICIPATING
G IN THE
E RIDER M
MANIA ORGANIZEED BY TH
HE

18%
1

82%
%

Yes
No

ROYAL
L ENFIEL
LD CLUB

76
FINDINGS

77 
 
FINDINGS

1. It is revealed that majority of users are between 20 to 29 years. From this we


can conclude younger generation and middle age are more interested in Royal

Enfield may be because this is the age where they start earning.

2. It is clear that most of the users of Royal Enfield are males mostly because of
the manly look of the bikes.

3. Users are mostly Professional males, 20-35 years of age including some
students because of the looks and power of the bike.

4. Royal Enfield is placing their products in the appropriate price range. As the
people of this income bracket less than 1,20,000 can easily afford this Bike.

5. Customers are not attracted to only one particular model due to the variants
available and because the Classic 500/350 is the newly released models they

are fast moving now.

6. Customers are easily affording the price of Royal Enfield bikes and they are
not feeling much problem with the amount and purchasing way of most of the

customers is leading in cash sector.

7. Majority of the customers directly chose Royal Enfield as their bike and dint
even have a look at the nearest alternative bike and this shows the loyalty of

the customers towards the brand Royal Enfield.

8. Advertisements are rarely recalled and are highly ineffective amongst non-
Bullet riders. It’s clear that Royal Enfield should concentrate on its advertising

campaign to reach the customers.

78 
 
9. It clearly shows that mileage of the Royal Enfield bikes is economical &
mileage between 35 and 40 that too on Indian roads with heavy traffic is a

great deal.

10. Most of the Royal Enfield bikes doesn’t breakdown at all, it is not problematic
and not involved into repair always.

11. It is clear that most of the respondents prefer to buy their bike brand new from
showroom only and majority of the customers are very much satisfied with the

place of purchase of their Royal Enfield bike. This also shows there is more

demand for new bikes.

12. It is clear that majority of the respondents are satisfied with spare parts
availability and we can say that Royal Enfield has good distribution channel for

spare parts in the city.

13. It is clear that majority of the people who choose Royal Enfield as their bike
doesn’t have any problems or issues with their bike’s performance.

14. Majority of the respondents are satisfied with their bikes power and pick up.
This shows Royal Enfield has an excellent satisfaction level within the

customer

15. Majority of the respondents are satisfied with their bikes comfort and safety.
This shows Royal Enfield has an excellent satisfaction level within the

customers.

16. Majority of the respondents are satisfied with their after sales service and few
respondents are not at all satisfied. This shows Royal Enfield has a good

satisfaction level within the customers.

79 
 
17. It is clear that People who choose not to buy Bullets do so because of low
promotion, high price and maintenance. So Royal Enfield should concentrate

on their promotional campaigns and make sure it reaches the common man.

18. It is clear that most of the respondents service their bikes in the showrooms
and also with a well known bullet mechanic. There is no much difference but

this shows people have less trust with the showroom service.

19. Most of the respondents agree that the company takes action towards the
complaints lodged by the customers and also the satisfaction level of the

customers is very high. This shows Royal Enfield checks at the complaints

registered by their customers on regular basis to maintain its brand value.

20. Majority of the respondents are very much interested in Rider Mania and also
shows that respondents are very passionate Enfield fans.

80 
 
CONCLUSION

81 
 
CONCLUSION

The study has helped Royal Enfield dealers to understand whether the
customers are satisfied or not. If not what are main reasons for dissatisfaction of
customer towards the dealer and what are the ways of improving the satisfaction
level of customer towards dealer.

We can conclude younger generation and middle age are more interested in
Royal Enfield, the buying behavior is governed predominantly by the need for Power
and respect for the iconic Brand and users are mostly Professional Males, 20-35
years of age, including some students. Most of the customers are attracted to newly
released Classic 350/500, also customers are easily affording the price of Royal
Enfield bikes and customers are very loyal towards the brand Royal Enfield.

Royal Enfield should concentrate on its advertising campaign to reach the


customers, mileage of the Royal Enfield bikes is very economical and most of them
prefer to buy their bike brand new from showroom with the spare parts available in
market easily.

Royal Enfield has an excellent satisfaction level within the customer for its
power, pick up, comfort, safety and with after sales service.

It is clear that Royal Enfield checks at the complaints registered by their


customers on regular basis to maintain its brand value and entire Royal Enfield
owner are passionate Royal Enfield fans.

82 
 
SUGGESTIONS

83 
 
SUGGESTIONS

 Aggressive selling- The Company should follow an aggressive selling

concept. A non-aggressive selling concept which is clearly visible in its

advertising campaign which does not hit on the customer rather aims to

provide information in a subtle manner.

 Promotional campaign- The Royal Enfield ads seen on electronic and print

media are absolutely out of touch with the Indian culture and thought process.

An Indian consumer irrespective of their income level has a soft corner for

traditions and culture of India. Hence, all companies including market leaders

like Hero Honda and Bajaj capitalize on this behavior of customers and design

their ad campaigns keeping India in mind.

 Weak follow up from dealerships- It was observed during the study that Royal

Enfield was quite weak in following up with prospective customers.

 Measures should be taken to improve its dealership- Showrooms are very

small in size and do not reflect the quality and scale of Royal Enfield in the

market.

 Should improve the after sales service- During the survey it was found that

Royal Enfield is not satisfying all their customers in after sales services,

employees at dealership sometimes use harsh words and become rude to the

customers, parts of the bike are not easily available in the market. This is the

major drawback in capturing the market share so Royal Enfield should take

some better steps to satisfy and retain their customers.

84 
 
 Increase in customer query response- During the study it was found that

dealers are not satisfying the queries of customers and so suggested to

increase customer query response by dealers.

 Youth oriented promotion- Company should focus more on younger

generation as it can increase sales and market share in Agra.

 Purchasing way of customers- Customers are easily affording the price of

Royal Enfield bikes and they are not feeling much problem with the amount.

But the company should also take some steps towards making purchase

easier through bank loans and EMI’s.

 Marketing communication- It should focus on satisfying the needs for

Respect, Power, Safety and Comfort.

 Brand ambassador- A non-flamboyant well-built brand ambassador may be

chosen to represent the Brand. It is necessary for Royal Enfield to have a

brand ambassador from India to connect with the Indian customer.

 Build iconic status- Royal Enfield should concentrate on building around the

iconic status it already enjoys if it plans to attract customers migrating to other

manufacturers.

85 
 
BIBLIOGRAPHY

86 
 
BIBLIOGRAPHY

Books Referred

 Marketing Management, 13th edition - Philip Kotler

 Survey Research Methods - Charles Babbie

Magazines Referred

 The Bullet-In, The Magazine For All Royal Enfield Bullet Enthusiasts.

 Royal Enfield Magazine, The BEAT.

Websites Referred

 www.google.com

 www.royalenfield.com

 www.wikipedia.org

 www.enfieldmotorcycles.com

87 
 
APPENDIX

88 
 
QUESTIONNAIRE
I am Venu S, a final year BBM student from Presidency College. This
information is required for successful completion of my project ‘A Study on Customer
Satisfaction towards Royal Enfield bikes, Agra.’ I request you to kindly spare some of
your time and fill the questionnaire below. Thank you.

RESPONDENT INFORMATION

Name:

1. Age:

2. Gender : Male Female

3. Occupation:

Student Government service

Professional Self employed other

4. Annual Income:
Less than 1, 20,000 1, 20,001-3, 60,000

3, 60,001-7, 20,000 Above 7, 20,000

5. Which model of Royal Enfield do you presently own?


Bullet 500 Thunder Bird

Bullet Electra Machismo 500 Bullet 350

Classic 500/350 others

6. How did u purchase the bike?


Cash Loan

7. Did u consider other motorcycle while buying the Royal Enfield bike?
Yes No

- If yes which bike did you compare with?

Bike cc

89 
 
8. Please specify your source of awareness of Royal Enfield while buying your
bike?

Newspapers Magazines Friends

Road shows TV Adds Website/blogs

Showroom Others

9. Please specify your bike’s mileage?


45km/lit & above 40-45

35-40 30-35 Below 30

- Are you satisfied with the bikes mileage?


Yes No

10. Frequency of breakdown of your bike?


Very often rarely Not at all

11. Which place did you prefer to purchase your Royal Enfield bike?
Showroom Direct second hand

Used vehicles dealership

Are you satisfied purchasing there? YES NO

12. How about the availability of spare parts?


Readily available don’t get them readily

Don’t have good spares supply Major headache

13. Any major problems after purchasing Royal Enfield bike?

No problem

High maintenance Poor after sales service

High price Low mileage Noisy vehicle

90 
 
14. How many stars will u rate for your satisfaction level with respect to power
and pick up of your Royal Enfield bike? Poor Average
Good Excellent

15. How many stars will u rate for your satisfaction level with respect to comfort
and safety of your Royal Enfield bike?

16. How many stars will u rate for your satisfaction level with respect to after sales
service of your Royal Enfield bike?

17. How does your friend say to your Royal Enfield bike?
Trendy Macho

High Cost Low mileage

Expensive spare parts

Others- If any

18. What do you think is the major barrier for not purchasing Royal Enfield bikes
by non-bullet riders?

High Maintenance Poor after sales service

High price Low mileage

Poor promotion Noisy vehicle

91 
 
19. Where do you service your Royal Enfield bike?
Showroom Well known bullet mechanic

Nearby garage self service

20. Do you agree that company takes action towards the complaints lodged by the
customers?

YES NO

Are you satisfied with their replies?

YES NO

21. How many times have you suggested your friends or relatives to purchase of
Royal Enfield bikes?

1-2 3-4 More than 5

22. Would you like to participate in the Rider Mania organized by the Royal Enfield
club?

YES NO

23. Any suggestions

92 
 

You might also like