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Haider New
1
INTRODUCTION TO MARKETING
which companies build strong customer relationships and create value for their
Marketing is used to identify the customer, to satisfy the customer, and to keep
the customer. With the customer as the focus of its activities, it can be
markets caused by mature markets and overcapacities in the last 2-3 centuries.
from production to the perceived needs and wants of their customers as the
The term marketing concept holds that achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired
organization should anticipate the needs and wants of consumers and satisfy
2
An orientation, in the marketing context, related to a perception or attitude a
firm holds towards its product or service, essentially concerning consumers and
Contemporary approaches
society. New forms of marketing also use the internet and are therefore called
CUSTOMER SATISFACTION
customers, whose reported experience with a firm, its products, or its services
3
satisfaction is seen as a key differentiator and increasingly has become a key
can have powerful effects. They focus employees on the importance of fulfilling
problems that can affect sales and profitability. These metrics quantify an
important dynamic. When a brand has loyal customers, it gains positive word-
satisfaction, firms generally ask customers whether their product or service has
satisfaction. When customers have high expectations and the reality falls short,
they will be disappointed and will likely rate their experience as less than
satisfying. For this reason, a luxury resort, for example, might receive a lower
satisfaction rating than a budget motel—even though its facilities and service
4
CUSTOMER SATISFACTION IN 7 STEPS
This is the most daunting and downright scary part of interacting with a
customer. If you're not used to this sort of thing it can be a pretty nerve-
wracking experience. Rest assured, though, it does get easier over time. It's
important to meet your customers face to face at least once or even twice during
This goes without saying really. We all know how annoying it is to wait
days for a response to an email or phone call. It might not always be practical to
deal with all customers' queries within the space of a few hours, but at least
email or call them back and let them know you've received their message and
you'llcontact them about it as soon as possible. Even if you're not able to solve a
problem right away, let the customer know you're working on it.
A fellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be friendly, courteous and to
make your clients feel like you're their friend and you're there to help them out.
There will be times when you want to beat your clients over the head repeatedly
5
with a blunt object - it happens to all of us. It's vital that you keep a clear head,
respond to your clients' wishes as best you can, and at all times remain polite
and courteous.
This may not be too important when you're just starting out, but a clearly
defined customer service policy is going to save you a lot of time and effort in
the long run. If a customer has a problem, what should they do?
If the first option doesn't work then what? Should they contact different people
for billing and technical enquiries? If they're not satisfied with any aspect of
your customer service, who should they tell? There's nothing more annoying for
a client than being passed from person to person, or not knowing who to turn to.
So make sure your customer service policy is present on your site -- and
5. Attention to Detail
Have you ever received a Happy Birthday email or card from a company
you were a client of? Have you ever had a personalized sign-up confirmation
email for a service that you could tell was typed from scratch? These little
niceties can be time consuming and aren't always cost effective, but remember
to do them.
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Even if it's as small as sending a Happy Holidays email to all your customers,
it's something. It shows you care; it shows there are real people on the other end
of that screen or telephone; and most importantly, it makes the customer feel
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them
Out
Sometimes this is easier said than done! However, achieving this supreme
level of understanding with your clients will do wonders for your working
relationship.
It's possible this is the most important point in this article. The simple
disappointed. Sometimes, something may not get done, or you might miss a
deadline through no fault of your own. Projects can be late, technology can fail
7
CUSTOMER LOYALTY
for the execution of the research at hand. For that, the development of customer
From these concepts, a definition of customer loyalty for use in this study will
be portrayed.
Since the beginning of the 1990s, customer loyalty has gained importance
In a first phase, firms tried to face these challenges by focusing on their internal
existing ones and to win over new ones (churning). Since “acquiring new
customers is much more expensive than keeping them”. And “loyal customers
are the bedrock of any business”. A loyal customer base represents a barrier to
research, the focus shifted towards analyzing relationships states that the
‘traditional’ marketing concept of the marketing mix with its ‘4 Ps’, developed
in the middle of the last century, had been the established approach until the
1990s.
can be nested.
1970s, it was not until the late 1980s that works from the ‘Nordic School of
Services’. Initiated a paradigm shift that geared marketing towards the creation,
9
marketing today is widely accepted among marketing researchers, its promoters
10
OBJECTIVES OF CUSTOMER SATISFACTION
PROGRAMME
Our Programs are research based, built on the three corner stone’s of customer
quality. Our typical program assesses specific issues under each component, for
example:
Product Quality
Procedural Quality
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• appropriate adjustment/return policy
Relationship Quality
The tailored Programs provide direct, statistically valid, comparison data of you
• Responsiveness
• Competitiveness
• Innovativeness
• Quality
customers' perspective. Using the data, it will help you focus strategic efforts to
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retain and increase market share. The programs also provide direct measure of
year (after first year's participation). That is, you will have quantifiable internal
annual surveys to judge progress based on actions you have taken during the
previous 12 months
Product
Sales Knowledge
Brochure detail
Marketing Mailing frequently
Order Delivery time
Distribution Order Completeness
Problem Response Time
Courtesy
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CUSTOMER CARE AND SALES PROCESSES
the ‘people’ element in the marketing mixreflects. Customer care can play an
rollingthrough all sectors of the organization and costs will grow too, asfurther
There are frequent internal newsletters circulated which strengthens the bond
1. Objectives setting: For every month, target sales will be fixed by the Sales
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2. Current situation analysis: Present industrial trend is observed closely
both internally and externally. Monthly sales targets fixed by the Sales
Manager.
willbe under the charge of a supervisor under whom there are foursales
fixed.
they discuss their daily programs andtargets to meet plus they also discuss
about their previous day’swork among the team. They consider the
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5. Implementation: Implement training and other initiatives
customers may not be satisfied with the present offers andprice. In such
sales.
• Documentation • Personnel
• Billing • Communication
• Follow Up • Requests
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If you can’t immediately solve the problem, respond to the customer and
identify an “owner” who will be responsible for final resolution. Complete the
make sure there’s closure. If you’ve left the customer hanging without a
Collect all complaints from all external customers and categorize them in a way
tendencies, etc.
Use the database of complaints to define processes that are important from the
customer’s perspective and to improve the most critical ones. Based on analysis
customer complaints. If you can think of complaints as useful data for making
making changes that will differentiate you and make your work life easier, more
17
INDUSTRY PROFILE
The automobile industry is one of the biggest industries in the world. Being a
major revenue and job generating sector it drives the economies of some of the
superpowers of the world. In India the automobile industry has grown by leaps
and bounds since the advent of the liberalization era the automobile industry
and especially the two wheeler segment has grown by leaps and bounds.
The liberalization has done away with primitive and prohibitive practices of
licensing and restricted foreign investment have been done away with. The
result of which was the entry of foreign players into the Indian market. The two
and Enfield in the 50s. Later on towards the end of the 50s Bajaj Autos began
with API and later Bajaj dominating the market. There were very few products
and choices available as far as motorcycle is concerned and Enfield bullet and
Rajdoot dominated the market. The 80s saw the entry of Japanese companies in
the Indian market with the opening up of the market to foreign companies. Hero
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Honda and TVS Suzuki are companies formed in this era of market reform. The
market wasstill predominantly scooter dominated and Bajaj and LML were the
result of which theever conquering 100cc bikes which were extremely fuel
to all those who could not buy a car. Theflourishing middle class took a great
liking for these bikes and the bike sales in Indiabegan to grow exponentially
year on year leading to Hero Honda becoming the leader inthe two wheeler
industry in India and the largest producer of two wheelers in the world.The post
90s era was the era of liberalization and weakening of restrictive measures.The
automobile industry and theexcise duty was also considerably reduced to its
current level of 12% on two wheelers.All these factors combined with the rising
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comprise 76.49% of market share among the vehiclesproduced in India.The
production share of two wheelers is quite similar to the market share. The
in India. TheSIAM data for the year 2009-10 states that 8,418,626 two wheelers
South Korea and Thailand. India’s automobile sector consists of the passenger
cars and utility vehicles, commercial vehicle, two wheelers and tractors
segment. The total market size of the auto sector in India is approximately Rs
540 billion and has been growing at around 8 percent per annum for the last few
years. Since the last four to five years, the two wheelers segment has driven the
However, lately the passenger cars and commercial vehicles segment has also
seen a good growth due to high discounts, lower financing rates and a pickup in
MarutiUdyog Ltd., General Motors India, Ford India Ltd., Eicher Motors, Bajaj
Auto, Daewoo Motors India, Hero Honda Motors, Hindustan Motors, Hyundai
Motor India Ltd., Royal Enfield Motors, TVS Motors and Swaraj Mazda Ltd.
With the economy growing at 9% per annum and increasing purchasing power
there has been a continuous increase in demand for automobiles. This, along
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with being the second largest populated country, makes the automobile industry
Ever since the old Lambretta scooter was replaced with the flurry of vibrant two
wheeler models, Indian two wheeler industry has seen a phenomenal change in
the way they perceive the Indian market. Two wheeler manufacturers are now
and features. The country has now grown into the second largest producer of
manufacturers in the country, and they are Bajaj, Hero, Hero Honda, Honda,
Mahindra/Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. There have been
various reasons behind this growth. Because of poor public transport system,
the citizens found convenience in two wheelers. Added to this is the fact that the
average Indian still does not have the purchasing capacity for a more expensive,
four wheeler. The story of Mr. Ratan Tata inspired by a family of four
members travelling in Indian roads, not concerned about safety and the
evolution of the idea of TATA Nano has been quite famous globally. The Indian
two wheeler industries can be divided into motorcycles, scooters and mopeds.
The consumer has changed his preference from mopeds to scooters and then to
motorcycles. The trends seen in the past few years include females increasingly
using two-wheelers for their personal commutation and various two wheeler
21
manufacturers designing vehicles specially to cater to needs of this segment.
One of the earliest revolutions in this industry was Kinetic’s introduction of the
scooter.
A recent trend in the industry has been electric vehicles, which mostly leverage
on their eco-friendliness and low operating costs, but is still not accepted well
geared scooter – TVS Scooty. The end of the last decade saw Bajaj taking a
radical decision to do away with the Scooter range and completely concentrate
reason. The customers are left without a choice in most cases than to migrate
from the traditional scooters of the Indian family to the all youthful bikes.
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TOP EXPORT DESTINATIONS
The Indian Automobile industry has attained new heights in the last
ten years. It has seen the vehicle production growing rapidly and industry has
and also to kitty of indirect taxes. Today, all major OEMs are in India and many
of them have made India a hub for their small cars and exports.
Plan with an aim to achieve domestic vehicle market of $82-119bn by 2016 and
producing country in the world by 2016. And, we have already achieved this
In this category, SAARC countries have been one of the key destinations
for Indian exports with three of the SAARC countries, Sri Lanka,
Bangladesh and Nepal featuring in the top 6 export destinations for Indian
the largest importer of two wheelers from India in 2006-07, have fallen by
10.
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The top most destinations for exports in this segment is Nigeria which
imported two wheelers worth $ 103mn in the year 2009-10 up from $ 85mn
one of the fastest growing destination for Indian two wheeler exports over
past 4 years. India exported two wheelers worth merely $ 6mn in Nigeria in
FUTURE PROJECTIONS
from the current level of US$ 10bn in 2009. By the year 2016 the industry
million people.
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On the positive side, India’s strength in software sector, combined with
position globally.
Two wheeler industry gains more profit Considering the scenario of traffic
comparison with the market, any fool will prefer to travel in a two wheeler
(for regular use, not for picnic or time pass or once in a while trips). For the
simple reason that, with a two wheeler, sneaking anywhere is far easier
than a four wheeler. And definitely faster too. And then comes the bigger
but that’s not the case with a four wheeler. So, the whole point is unless
there is some way where these two issues are addressed, I don’t think
It gives the optimistic view about the industry and the overall industry
investments.
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RECENT TRENDS IN TWO WHEELER SECTOR
markets will continue unabated for some time. In value terms, the BRIC
value of $32.4 billion (Brazil alone growing by 32% pa). By 2013, the
estimated to be about 80-85 million units per annum. India has emerged
as one of the key players with a domestic market that is nearly about 11%
of the global market and growing significantly faster. The high base
implies that India and Indian companies are set to enter a stage where
they are likely to be the preferred suppliers for motorcycles. This is likely
below 150 cc being the dominant segment. This is unlike the developed
world, where it is the larger bikes that dominate the market volumes.
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At present as many as 72% of the bikes are in the entry segment (defined
as 75 to 125 cc), and 27% are in the executive segment (defined as 125-
its share is not expected to grow beyond 2-2.5% over the next decade.
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CHAPTER 2
28
LITERATURE REVIEW
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.
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
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
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CHAPTER 3
30
OBJECTIVES OF THE STUDY
customer.
Enfield.
service.
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 NOIDA and the scope is
limited.
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1. Customer- A customer (also known as a client, buyer, or purchaser) is
advertisement.
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CHAPTER 4
33
RESEARCH METHODOLOGY
go deeper into the user’s psyche and develop a thorough understanding of what
The first phase is completely internal where it is stormed over the most effective
route of action, considering that Bullet users in NOIDA 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
34
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
took the feedback from the customers who were coming for the services
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
the topic were also browsed to understand the dynamics of the industry.
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SAMPLE DESIGN
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 the customer satisfaction study a sample of 75
persons was chosen from the in NOIDA city. The sample was judgmental and
Size of Sample 75
Sampling technique Convenient Random Sampling
method
Location from which samples were NOIDA city
taken
PLAN OF ANALYSIS
36
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
From the set of inferences and interpretation, conclusion have been drawn
37
This research is geographically restricted to NOIDA city only. Hence the
industry.
cost constraints.
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.
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.
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Chapter-1 Introduction- It’s all about the Introduction part. It mainly consists
program.Later about automobile industry till date, Indian two wheeler market
methodology, data collection, sample design, plan of analysis and finally the
of the company Royal Enfield, company’s vision and objective, Royal Enfield
analysis and interpretation from the data collected through questionnaires, tables
drawn from the study and final conclusion about the whole project. Also few
39
Chapter-6 Suggestions- This chapter contains some suggestions to the
company.
doors in the tiny village of Hunt End, near the Worcestershire town of Redditch.
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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
DEFUNCT 1971
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
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
bikes. In 1996, when the Government of India imposed stringent norms for
was among the few companies in India to obtain the WVTA (Whole Vehicle
Type Approval) for meeting the European Community norms. Today, Royal
42
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 PragatiMaidan in
New Delhi, the event saw more than 400 global brands showcasing new
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:
- NDTV Profit Car & Bike Awards 2010: Motorcycle of the Year above 250 cc.
- NDTV Profit Car & Bike awards 2010: Best PR Communications Team.
43
EVOLUTION OF ROYAL ENFIELD
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. Sowas 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!
Works was growing rapidly. Over the next three years he developed his own
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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
November 1891. The following year the firm was re-christened ‘The Eadie
contract to supply precision rifle parts to the Royal Small Arms Factory in
Enfield, Middlesex.
45
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
patriotic fervor and the slogan caught the spirit of the time. In 1899 the first
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 knownEadie Coaster. Then came the ‘Riche Model’ with more refined
1897-Quadricycles
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,
46
MOTORCYCLES (1900 - 1910)1904-Four
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
1909-Motorcycle
Craze
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
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
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THE ROYAL ENFIELD BIKES (1911 - 1920)
1911-Enfield and the War
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
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
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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
The year 1924 saw the launch of the first Enfield four-stroke 350cc single using
a JAP engine.
1928-The Depression
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
valve gear. It was then that the first use was made
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of the now famous Bullet name. Longer stroke, four-valve head exposed valves
and heavily finned crankcase werethe features that ran from 1932 until the end
of 1934.
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
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
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end, followed in 1948 by a 500cc twin (Enfield's 25bhp answer to the Triumph
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
introduced: the 650cc Meteor twin; a 250cc Clipper; a short stroke 250cc
Crusader; 250cc Trials; Super 5; Continental; 500 Sports Twin; Super Meteor;
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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
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 RedditchBullet.
The frame, electric tinware and rolling chassis, however, were to undergo many
changes over the next ten years, with the Bullet slowly evolving into the
52
AMC company, acquired the Indian Sales Corp. in 1959). However, in 1961,
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
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
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 tinware 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 provide more efficient cooling for Indian conditions, and thus
53
ALL THAT ENFIELD'S ISN'T A BULLET (1971 - 1980)
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
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
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young office going male, but among an increasing number of women who
found the step-through design convenient. The Explorer, with its contemporary
bikini 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
quick motorcycle came fitted with a hydraulic disc brake. Again a first in the
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
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.
55
1993 Bullet 500-The Bullet 500 was launched in June this year. It went on to
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
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
Szoldrak won the National Road Race Championship (60’s Class) on a Bullet.
2003
Goa.
56
the ICICI Overdrive awards.
1000 Riders descend on Redditch for the Royal Enfield Owners Club 25th
Anniversary.
Electra International with a lean-burn engine is launched in the UK.34 men ride
2005
Electra features a revolutionary 5-Speed left side gear shift that makes the
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
57
2007
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 passers-by that they are in the presence of
automotive royalty.
2008
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.
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The evolutionary mix of old and new features in this motorcycle will surely
2009
the Classic 350 will hold its own against any other motorcycle and then pull
some more. The Classic 350 shares its powerplant 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
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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.
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
60
extraordinary skill, courage, endurance and mental strength, entered the annals
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,
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
ORGANISATIONAL STRUCTURE
GENERAL MANAGER
(Proprietor)
61
Sales Manager Service Manager Service Manager
Sales
Representative
62
CHAPTER 5
SWOT ANALYSIS
MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET
63
GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES
64
STRENGTHS WEAKNESSES
OPPURTUNITIES THREATS
65
STRENGTHS WEAKNESSSES
OPPURTUNITIES THREATS
TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE
66
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
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.
GRAPH No.1
67
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE
16%
40%
18%
26%
20-24
25-29
30-34
Above 35
TABLE No.2
68
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER
FEMALE 6 8%
TOTAL 75 100%
Analysis
From the above table it is clear that 92% of respondents were male and female
Interpretation
It is clear that most of the users of Royal Enfield are males mostly because of
GRAPH No.2
69
GRAPHSHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER
8%
92%
Male
Female
TABLE No.3
70
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS
OCCUPATION NO.OF PERCENTAGE
RESPONDENTS
STUDENT 33 44%
GOVERNMENT 5 6%
SERVICE
EX-SERVICEMEN 3 4%
PROFESSIONAL 21 28%
SELF-EMPLOYED 13 18%
TOTAL 75 100%
Analysis
From the above table it is clear that 44% of the respondents were students
Interpretation
It is clear that users are mostly Professional males, 20-35 years of age including
GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS
71
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Student
Govt service
Ex-servicemen
Proffesional
Self-employed
TABLE No.4
72
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%
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
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 1,20,000can
73
GRAPH No.4
GRAPH SHOWING-THE ANNUAL INCOME GROUP OF
RESPONDENTS
16%
18%
52%
14%
Less than
1,20,000
1,20,001-
3,60,000
3,60,001-
7,20,000
Above 7,20,000
74
TABLE No.5
TABLE SHOWING-THE MODEL OF THE ROYAL ENFIELD
THE RESPONDENTS PRESENTLY OWN
MODEL NO. OF PERCENTAGE
RESPONDENTS
BULLET 500 11 14%
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.
75
GRAPH No.5
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD
THE RESPONDENTS PRESENTLY OWN
18
16
14
12
10
8
Bullet 500
6
Thunder Bird
4
Bullet Electra
2
Machismo 500
0
Bullet 350
No. of Respondents
Classic 500/350
Others
TABLE No.6
76
TABLE SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS
LOAN 21 28%
TOTAL 75 100%
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
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.
GRAPH No.6
77
GRAPH SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS
60
50
40
30
20
10
0
CASH LOAN
TABLE No.7
78
TABLE SHOWING- THE NO OF RESPONDENTS
CONSIDERING OTHER MOTORCYCLE WHILE
PURCHASING ROYAL ENFIELD BIKE
NO 48 64%
TOTAL 75 100%
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
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
GRAPH No.7
79
GRAPH SHOWING- THE NO OF RESPONDENTS
CONSIDERING OTHER MOTORCYCLE WHILE
PURCHASING ROYAL ENFIELD BIKE
70%
60%
50%
40%
30% 64%
36%
20%
10%
0%
YES
NO
No. of Respondents
80
TABLE No.8
TABLE SHOWING- THE SOURCE OF AWARENESS FOR
CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD
BIKE
MEDIA NO. OF PERCENTAGE
RESPONDENTS
NEWSPAPERS 6 8%
MAGAZINES 24 32%
FRIENDS 11 14%
ROADSHOW 7 10%
TV ADDS 5 6%
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.
81
GRAPH No.8
GRAPH SHOWING- THESOURCE OF AWARENESS FOR
CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD
BIKE
35%
30%
25%
20%
15%
10%
5%
0%
newspaper
magazines
friends and
relations roadshow
tv adds
website
showroom
82
TABLE No.9
TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD
AFTER PURCHASE OF BIKE
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
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.
83
GRAPH No.9
GRAPH SHOWING-THE MILEAGE OF ROYAL ENFIELD
AFTER PURCHASE OF BIKE
30
25
20
15
10
0
45km/lt 40-45 35-40 30-35 Below 30
TABLE No.10
TABLE SHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE
84
FREQUENCY OF NO. OF PERCENTAGE
BREAKDOWN RESPONDENTS
VERY OFTEN 8 10%
RARELY 19 26%
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
GRAPH No.10
GRAPHSHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE
85
10%
26%
64%
Very often
Rarely
Not at all
86
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%
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.
87
GRAPH No.11
GRAPH SHOWING- THE PLACE OF PURCHASE OF ROYAL
ENFIELD BIKES AND THEIR SATISFACTION RESPONSE
TOWARDS IT
48
50 No. pf Respondents
45
40
35
30 22
25
20
15
5
10
5
0
Showroom Direct second hand Used vehicles dealership
Point of satisfaction
24%
Satisfied
Not Satisfied
76%
88
TABLE No.12
TABLE SHOWING- THE AVAILABILITY OF SPARE PARTS
IN THE MARKET
AVAILABILITY NO.OF PERCENTAGE
RESPONDENTS
READILY 51 68%
AVAILABLE
DON’T GET THEM 8 10%
READILY
DON’T HAVE 12 16%
GOOD SPARES
SUPPLY
MAJOR 4 6%
HEADACHE
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
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
89
GRAPH No.12
6%
16%
10%
68%
Readily Available
Don't get them readily
Don't have good spares supply
Major headache
90
TABLE No.13
TABLE SHOWING- THEMAJOR PROBLEMS AFTER
PURCHASING ROYAL ENFIELD BIKE
PROBLEMS NO. OF PERCENTAGE
RESPONDENTS
HIGH 11 14%
MAINTENANCE
POOR AFTER SALES 7 10%
SERVICE
HIGH PRICE 15 20%
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
problemwas 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’thave any problems or issues with their bike’s performance.
91
GRAPH No.13
GRAPH SHOWING-THEMAJOR PROBLEMS AFTER
PURCHASING ROYAL ENFIELD BIKE
14%
10%
42%
20%
High maintainance
4%
10% Poor after sales
service
High Price
Low mileage
Noisy vehicle
No problem
92
TABLE NO.14
TABLE SHOWING- THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
POWER AND PICK UP
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 4 6%
AVERAGE 8 10%
GOOD 20 26%
EXCELLENT 43 58%
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.
93
GRAPH No.14
45
Excellent
40
35
30 Good
25
20
15 Average
10
5
0 Poor
No. of Respondents
94
TABLE No.15
TABLE SHOWING-THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
COMFORT AND SAFETY
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 7 9%
AVERAGE 12 16%
GOOD 24 32%
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.
95
GRAPH No.15
GRAPH SHOWING-THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
COMFORT AND SAFETY
9%
16%
43%
32% Poor
Average
Good
Exellent
96
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.
97
GRAPH No.16
GRAPH SHOWING- THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
AFTER SALES SERVICE
30
25
20
15 27
24
10
13
11
0
Poor Average Good Excellent
No. of Respondents
98
CHAPTER 6
99
FINDINGS
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
3. Users are mostly Professional males, 20-35 years of age including some
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
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
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
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 has an excellent satisfaction level within the customer for its
power, pick up, comfort, safety and with after sales service.
101
SUGGESTIONS
advertising campaign which does not hit on the customer rather aims to
print media are absolutely out of touch with the Indian culture and
has a soft corner for traditions and culture of India. Hence, all companies
including market leaders like Hero Honda and Bajaj capitalize on this
mind.
Weak follow up from dealerships- It was observed during the study that
customers.
102
QUESTIONNAIRE
103
ANNEXURE
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, NOIDA.’ I request you to
kindly spare some of your time and fill the questionnaire below. Thank you.
RESPONDENT INFORMATION
Name:
1. Age:
3. Occupation:
4. Annual Income:
104
6. How did u purchase the bike?
Cash Loan
7. Did u consider other motorcycle while buying the Royal Enfield bike?
Yes No
Bike cc
Showroom Others
11. Which place did you prefer to purchase your Royal Enfield bike?
105
Used vehicles dealership
No problem
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?
106
BIBLIOGRAPHY
107
BIBLIOGRAPHY
Books Referred
Magazines Referred
Enthusiasts.
Websites Referred
www.google.com
www.royalenfield.com
www.wikipedia.org
www.enfieldmotorcycles.com
108