51.4-282.8 billion) by 2026.

A STUDY ON

“MARKETING STRATEGY”
With reference to

ROYAL ENFIELD (Lakshmi Motors, Peddapadu, S r i k a k u l a m )

A Project report submitted in partial fulfillment for the Award of

“POST GRADUATE DIPLOMA IN MANAGEMENT”

Submitted by

AV.Durga Prasad

(ROLL NO: 34035)

(2020-2022)

Under the esteemed guidance of

Mr. SRIMANTH KUMAR, Professor

INTEGRAL INSTITUTE OF ADVANCED MANAGEMENT

(APPROVED BY AICTE NEW DELHI, INDIA)

VISAKHAPATNAM, A.P, INDIA.

 CERTIFICATE

This is to certify that the project report entitled “MARKETING STRATEGY” with
reference to Royal Enfield (Lakshmi Motors, Srikakulam) is a genuine and bona-fide
work done by AV. Durga Prasad, a student of 2nd year PGDM, INTEGRAL INSTITUTE
OF ADVANCED MANAGEMENT,
Visakhapatnam for the award of PGDM from AICTE under the guidance and supervision of
Mr. SRIMANTH KUMAR, Assistant Professor, IIAM.

Mr. SRIMANTH KUMAR, Dr. VIJAYA RUDRARAJU

Professor, Director,

IIAM College IIAM College

 DECLARATION

I, AV. DURGA PRASAD hereby declare that the project report titled “A STUDY ON
MARKETING STRATEGY” with reference to Royal Enfield (Lakshmi Motors,
Srikakulam) has been submitted to INTEGRAL INSTITUTE OF ADVANCED
MANAGEMENT, in partial fulfillment of Post Graduate Diploma in Management under
the guidance of Mr. SRIMANTH KUMAR, Professor, IIAM, Visakhapatnam.

Place: Visakhapatnam AV. DURGA PRASAD

Date: (Roll No: 34035)

 ACKNOWLEDGEMENT

Before I begin my project, I would like to thank all those people who had constantly
supported and encouraged to bring this project into existence.

I wish to acknowledge my sincere thanks to Dr. VIJAYA RUDRARAJU, Director of IIAM

and all the faculty members of the college for their continuous support.

I am grateful to my faculty guide Mr. SRIMANTH KUMAR, Assistant Professor, IIAM,

who inspired me during my research in this area and had dedicated her valuable time and
extended her constructive guidance and constant supervision, which is an immense help to me
in successful completion of the study.

I equally thank all the Managers and Employees of Lakshmi Motors, Srikakulam who have
supported me and facilitated me throughout this study with their valuable suggestions.

AV. DURGA PRASAD

(Roll No: 34035)

 CONTENTS

CHAPTER-1 Pages (1-7)

1.1 INTRODUCTION 2
1.2 NEED FOR THE STUDY 3
1.3 OBJECTIVES OF THE STUDY 4
1.4 RESEARCH METHODOLOGY 5-6
1.5 LIMITATIONS OF THE STUDY 7

CHAPTER-2 (8-23)
2.1 INDUSTRY PROFILE 9-13

2.2 COMPANY PROFILE 14-23

CHAPTER-3 (24-31)
3.1 THEORETICAL FRAMEWORK 25-31

CHAPTER-4 (32-49)
4.1 FIELD STUDY AND DATA ANALYSIS 33-49

CHAPTER-5 (50-54)
5.1 SUMMARY 51

5.2 FINDINGS 52

5.3 SUGGESTIONS 53

5.4 Conclusion 54

QUESTIONNAIRE (55-58)
BIBLIOGRAPHY 58
CHAPTER-1

1
 1.1 INTRODUCTION
A market is never saturated with a good product, but it is very quickly saturated with a bad one.
- Henry Ford"

INDIAN AUTOMOBILE INDUSTRY

 Royal Enfield was a brand name under which The Enfield Cycle Company Limited of Red
ditch, Worcestershire sold motorcycles, bicycles, lawnmowers and Stationary engines Which
they had manufactured. Enfield Cycle Company also used the brand name Enfield Without
Royal.
 The first Royal Enfield motorcycle was built in 1901 by Robert Walker Smith and Albert
Eadie. The Enfield Cycle Company is responsible for the design and original production of the
Royal Enfield Bullet, the longest- lived motorcycle design in history.
 Royal Enfield motorcycles had been sold in India since 1949. In 1955, the Indian government
looked for a suitable motorcycle for its police and army, for use patrolling the country’s
border.

The automotive industry is one of the largest industries worldwide and in India as well. The
automotive sector is a vital sector for any developed economy. It drives upstream industries
like steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries
2
 like advertising and marketing, transport and insurance. The automotive industry can be
divided into five sectors: -

1) Passenger Cars

2) Multi- Utility Vehicles (MUVs)

3) Two- and Three- Vehicles

4) Commercial Vehicles - Light Commercial Vehicles (CVs) / Medium and

Heavy Commercial Vehicles (MHCVs)

5) Tractors

We will be looking at the Passenger car industry in India. Despite a head start, the passenger car
industry in India has not quite matched up to the performance of its counterparts in other parts of
the world. The primary reason has been the all-pervasive regulatory atmosphere prevailing till
the opening up of the industry in the mid-1990s. The various layers of legislative Acts sheltered
the industry from external competition for a long time. Moreover, the industry was considered
low-priority as cars were thought of as 'unaffordable luxury' The following table presents a
comparative view of the extent of motorization in India vis-à-vis certain other countries in the
world

3
 1.2 NEED FOR THE STUDY

Having a good reward system helps keep employees happy, loyal to the company, and eager
to move up the ladder. Rewards, like public recognition, bonus, appreciation, promotions,
additional pay, motivate employees to work harder.

The need for the present study is to understand the importance of reward system in an
organization, to find out if rewards bring a positive impact on employee performance, to find
out what kind of rewards are important to motivate the employees to increase in their
performance.

The study determines the importance of Monetary and Non-Monetary Rewards and also to
know the extent till where the extrinsic rewards and intrinsic rewards can enhance employee
performance. To know about the Lakshmi Motors, Srikakulam reward structure and how it
acknowledges the performance of its employees.

4
 1.3 OBJECTIVES OF THE STUDY

The present study of the marketing strategy of the Royal Enfield (Pvt.) Limited revolves around
the following broad objectives:

 To study the evolution and growth of the Royal Enfield (Pvt.) Limited in the context of
the automobile revolution in India;
 To study the growth strategy of the Royal Enfield (Pvt.) Limited and the marketing
methods followed by it in this regard.
 To study the Bullet Bike revolution in India and the contribution of the Royal
Enfield (Pvt.) Limited to it.

5
 1.4 RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the investigation of

matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. Research can use the scientific
method, but not to do so.

Scientific research relies on the application of the scientific method, a harnessing of curiosity.
This research provides scientific information and theories for the explanation of the nature and
the properties of the world around us. It makes practical applications possible. Scientific
research is funded by public authorities, by charitable organizations and by private groups,
including many companies. Scientific research can be subdivided into different classifications
according to their academic and application disciplines.

Research methodology is a way to systematically solve the research problem. The data for the
present study is collected from both primary and secondary sources.

Primary Sources:

Primary Data was collected through Questionnaire given to various staff members of the
personnel departments. A questionnaire of 15 questions regarding the topic was prepared and
given to the employees of Lakshmi Motors, Srikakulam.

Secondary Sources:

Secondary information regarding the study was collected from various reports, magazines and
journals of Royal Enfield. Additional information has been taken from the website of Royal
Enfield Limited.

6
METHOD OF SAMPLING USED:

“RANDOM SAMPLING METHOD”

In the random sampling method, all items have some chance of selection that can be
calculated. Random sampling technique ensures that bias is not introduced regarding who is
included in the survey.

SAMPLE SIZE:

The sample size taken is 50 from the employees in the Lakshmi Motors, Srikakulam.

For this project, primary data was collected from the employees of Lakshmi Motors. The
basic approach for the collection of primary data is by conducting a survey with the help of a
questionnaire.

7
 1.5 LIMITATIONS OF THE STUDY

In spite of the precautions, vigilance and scrupulousness taken to make the study objective, it
cannot be denied that there are certain limitations:

 Due to the Covid-19 Pandemic the present study couldn’t be done physically by
visiting the company and interacting with employees directly but everything had to be
done through online which is very challenging.
 As the survey was conducted online most of the employees haven’t responded
properly and were very reluctant to give the information and to fill the questionnaire.
 The sample size was small so there was no scope to know each and every employee’s
opinion and views.
 Primary data collection was time assuming and Accessibility to all the necessary
records for the research was limited by the organization.

8
CHAPTER-2

9
 2.1 INDUSTRY PROFILE

INTRODUCTION

India became the fourth largest auto market in 2019 displacing Germany with about 3.99
million units sold in the passenger and commercial vehicles categories. India is expected
to displace Japan as the third largest auto market by 2021.

The two- wheeler segment dominates the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations for the
near future. In addition, several initiatives by the Government of India and major
automobile players in the Indian market are expected to make India a leader in the two-
wheeler and four-wheeler market in the world by 2020.

MARKET SIZE

Domestic automobiles production increased at 2.36% CAGR between FY16-20 with

26.36 million vehicles being manufactured in the country in FY20. Overall, domestic
automobiles sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million
vehicles being sold in FY20.

Two wheelers and passenger vehicles dominate the domestic Indian auto market.
Passenger car sales are dominated by small and mid-sized cars. Two wheelers and
passenger cars accounted for 80.8% and 12.9% market share, respectively, accounting for
a combined sale of over 20.1 million vehicles in FY20.

Passenger vehicle (PV) sales stood at 3,10,294 units in October 2020, compared with
2,71,737 units in October 2019, registering a 14.19% growth. As per the Federation of
Automobile Dealers Associations (FADA), PV sales in November 2020 stood at 2,91,001
units, compared with 2,79,365 units in November 2019, registering a 4.17% growth.

10
Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of
6.94% during FY16-FY20. Two wheelers made up 73.9% of the vehicles exported,
followed by passenger vehicles at 14.2%, three wheelers at 10.5% and commercial
vehicles at 1.3%.

EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56
lakh units in FY20 driven by two wheelers.

Premium motorbike sales in India recorded seven- fold jump in domestic sales, reaching
13,982 units during April-September 2019. The sale of luxury cars stood between 15,000
to 17,000 in the first six months of 2019.

INVESTMENTS

In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 24.53 billion between April 2000
and June 2020, according to the data released by Department for Promotion of Industry and
Internal Trade (DPIIT).

Some of the recent/planned investments and developments in the automobile sector in

India are as follows:

 In November 2020, Mercedes Benz partnered with the State Bank of India to
provide attractive interest rates, while expanding customer base by reaching out to
potential HNI customers of the bank.
 Hyundai Motor India invested ~Rs. 3,500 crores (US$ 500 million) in FY20, with
an eye to gain the market share. This investment is a part of Rs. 7,000 crore (US$
993 million) commitment made by the company to the Tamil Nadu government in
2019.
 In October 2020, Kinetic Green, an electric vehicles manufacturer, announced
plan to set up a manufacturing facility for electric golf carts besides a battery
swapping unit in Andhra Pradesh. The two projects involving setting up a
manufacturing facility for electric golf carts and a battery swapping unit will entail
an investment of Rs. 1,750 crores (US$ 236.27 million).

11
 In October 2020, Japan Bank for International Cooperation (JBIC) agreed to
provide US$ 1 billion (Rs. 7,400 crore) to SBI (State Bank of India) for funding the
manufacturing and sales business of suppliers and dealers of Japanese automobile
manufacturers and providing auto loans for the purchase of Japanese automobiles
in India.
 In October 2020, MG Motors announced its interest in investing Rs. 1,000 crores
(US$ 135.3 million) to launch new models and expand operations in spite of the
anti-China sentiments.
 In October 2020, Ultra Violette Automotive, a manufacturer of electric motorcycle
in India, raised a disclosed amount in a series B investment from Go Frugal
Technologies, a software company.
 In September 2020, Toyota Kirloskar Motors announced investments of more than
Rs 2,000 crore (US$ 272.81 million) in India directed towards electric components
and technology for domestic customers and exports.
 During early September 2020, Mahindra & Mahindra singed a MoU with Israel-
based REE Automotive to collaborate and develop commercial electric vehicles.
 In April 2020, TVS Motor Company bought UK’s iconic sporting motorcycle
brand, Norton, for a sum of about Rs. 153 crores (US$ 21.89 million), making its
entry into the top end (above 850cc) segment of the superbike market.
 In March 2020, Lithium Urban Technologies partnered with renewable energy
solutions provider, Fourth Partner Energy, to build charging infrastructure.
 In January 2020, Tata Auto Comp Systems, the auto-components arm of Tata
Group entered a joint venture with Beijing-based Prestolite Electric to enter the
electric vehicle (EV) components market.
 In December 2019, Force Motors planned to invest Rs. 600 crores (US$ 85.85
million) to develop two new models over the next two years.
 In December 2019, Morris Garages (MG), a British automobile brand, announced
plans to invest an additional Rs. 3,000 crores (US$ 429.25 million) in India.
 Audi India planned to launch nine all- new models including Sedans and SUVs
along with futuristic E-Tron EV by end of 2019.
 MG Motor India planned to launch MG ZS EV electric SUV in early 2020 and
have plans to launch affordable EV in the next 3-4 years.
 BYD-Olectra, Tata Motors and Ashok Leyland will supply 5,500 electric buses for
different state departments.

12
GOVERNMENT INITIATIVES

The Government of India encourages foreign investment in the automobile sector and has
allowed 100% foreign direct investment (FDI) under the automatic route.

Some of the recent initiatives taken by the Government of India are -

 Under Union Budget 2019-20, the Government announced to provide additional

income tax deduction of Rs. 1.5 lakh (US$ 2,146) on the interest paid on the loans
taken to purchase EVs.
 The Government aims to develop India as a global manufacturing Centre and a
Research and Development (R&D) hub.
 Under NAT Rip, the Government of India is planning to set up R&D Centre’s at a
total cost of US$ 388.5 million to enable the industry to be on par with global
standards.
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the
country for introduction of EVs in their public transport systems under the FAME
(Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India)
scheme. The Government will also set up incubation Centre for start- ups working in
the EVs space.
 In February 2019, the Government of India approved FAME-II scheme with a fund
requirement of Rs. 10,000 crores (US$ 1.39 billion) for FY20-22.

ACHIEVEMENTS

Following are the achievements of the Government in the last four years:

 In H12019, automobile manufacturers invested US$ 501 million in India’s auto-tech

start-ups according to Venture intelligence.
 Investment flow into EV start-ups in 2019 (till end of November) increased nearly
170% to reach US$ 397 million.
 On 29th July 2019, Inter- ministerial panel sanctioned 5,645 electric buses for 65 cities.
 NAT Rip’s proposal for “Grant-In-Aid for test facility infrastructure for EV
performance Certification from NATRIP Implementation Society” under the FAME
Scheme was approved by Project Implementation and Sanctioning Committee (PISC)
on 3rd January 2019.
13
  Under NAT Rip, following testing and research Centre’s have been established in
the country since 2015.
o International Centre for Automotive Technology (ICAT), Manesar.
o National Institute for Automotive Inspection, Maintenance & Training
(NIAIMT), Sachar.
o National Automotive Testing Tracks (NATRAX), Indore.
o Automotive Research Association of India (ARAI), Pune.
o Global Automotive Research Centre (GARC), Chennai.
 SAMARTH Udyog - Industry 4.0 Centre’s: ‘Demo cum experience’ Centre’s are
being set up in the country for promoting smart and advanced manufacturing helping
SMEs to implement Industry 4.0 (automation and data exchange in manufacturing
technology).

ROAD AHEAD

The automobile industry is supported by various factors such as availability of skilled labor at
low cost, robust R&D Centre’s, and low-cost steel production. The industry also provides
great opportunities for investment and direct and indirect employment to skilled and unskilled
labor.

Indian automotive industry (including component manufacturing) is expected to reach Rs. 16.16-18.18
trillion (US$ 2

14
 2.2 COMPANY PROFILE

Royal Enfield
This article is about the former British motorcycle manufacturer. For the Indian motorcycle
manufacturer, see Royal Enfield (India).

The Enfield Cycle Company Limited

Type Public Listed Company

Industry Motorcycles, Guns, Bicycles

Founded 1901

Founder Albert Eadie and Robert Walker Smith

Defunct 1971

Fate Defunct

Headquarters Redditch, Worcestershire

, 

UK

Products Royal Enfield Clipper, Crusader, Bullet, Interceptor,

WD/RE, Super Meteor

Royal Enfield was a brand name under which The Enfield Cycle Company

Limited of Redditch, Worcestershire[1] sold motorcycles, bicycles, lawnmowers and stationary
engines which they had manufactured. Enfield Cycle Company also used the brand name
"Enfield" without the "Royal".
The first Royal Enfield motorcycle was built in 1901. The Enfield Cycle Company is responsible
for the design and original production of the Royal Enfield Bullet, the longest-lived motorcycle
23
 design in history.
Royal Enfield's spare parts operation was sold to Velocette in 1967, which benefitted from the
arrangement for three years until their closure in early 1971. Enfield's remaining motorcycle
business became part of Norton Villiers in 1967 with the business eventually closing in 1978.

Contents

 1History
 2Enfield
 3Products
o 3.1First World War (1914–1918)
o 3.2Inter-war years (1921–1939)
o 3.3Second World War (1939–1945)
 4Postwar Model G and Model J and ex-military C and CO (1946–1954)
 5500 Twins, Meteors, Super Meteors and Constellations 1949–1963
 6250 cc models
 7Royal Enfield Interceptor
 8Enfield Indians
 9See also
 10Notes
 11References
 12External links

History[edit]
George Townsend set up a business in 1851 in Redditch making sewing needles. In 1882 his
son, also named George, started making components for cycle manufacturers including
saddles and forks. By 1886 complete bicycles were being sold under the names Townsend and
Ecossais. This business suffered a financial collapse in 1891.[2][3] Albert Eadie, sales manager of
Birmingham's Perry & Co Ltd, pen makers who had begun to supply components for cycles,
and Robert Walker Smith, an engineer from D. Rudge & Co,[4] were chosen by Townsend's
bankers to run the business. Then, in 1892, the firm was re-incorporated and named Eadie
Manufacturing Company Limited; it was based in Snow Hill, Birmingham.[5][6] Later, in 1907, after
serious losses from their newly floated Enfield Autocar business, Eadie Manufacturing and its
pedal-cycle component business was absorbed by Birmingham Small Arms Company (BSA).
[7]
 Years later, the BSA chairman was to tell shareholders that the acquisition had "done
wonders for the cycle department".[8] Eadie still retained a separate identity when Raleigh
bought BSA's cycle interests in 1957.[9]

Enfield

24
Share of "The New Enfield Cycle Company", issued 11. January 1897

Eadie had won contracts to supply precision parts for firearms to the government's long-
established Royal Small Arms Factory at Enfield, Middlesex, with its offshoot
in Sparkbrook and had assumed the brand name Royal Enfield.[10] In 1896 they also
incorporated a new subsidiary company, The New Enfield Cycle Company Limited,[note 1] to
handle much of the cycle work and in 1897 Enfield making complete cycles as well parts for
other assemblers took all the cycle assembly work from Eadie.
Enfield diversified into motor cycles, 1901 and motor cars, 1902. The motor department was
put into a separate subsidiary, Enfield Autocar Company Limited incorporated in 1906 and
established in new works at Hunt End, Redditch.[11] However Enfield Autocar after just 19
months reported a substantial loss and, aside from Eadie himself, shareholders were unwilling
to provide more capital so in early 1907 Eadie sold his control of Eadie Manufacturing to BSA.
Albert Eadie and Robert Walker Smith had been appointed directors of BSA before the
proposed sale had been put to shareholders. The new combined BSA and Eadie business
manufactured "military and sporting rifles, (pedal) cycle and cycle components, motor-cars
etc."[12] "BSA and Eadie cycle specialities".[13] But there were still minority Eadie shareholders
alongside BSA in 1957.
The business of Enfield Autocar, that is to say the plant and stock, was sold to
Birmingham's Alldays & Onions Pneumatic Engineering.[14] Enfield Cycle Company took over
the Hunt End premises.
In 1955, Enfield Cycle Company partnered with Madras Motors in India in forming Enfield of
India, based in Chennai, and started assembling the 350cc Royal Enfield Bullet motorcycle
in Madras. The first machines were assembled from components imported from England.
Starting in 1957, Enfield of India acquired the machines necessary to build components in
India, and by 1962 all components were made in India.
Frank Walker Smith (1888-1962), eldest son of Robert Walker Smith, joined Enfield Cycle
Company in 1909. Appointed joint (with his father) managing director in 1914 he took over the
full responsibility when his father died in 1933.[15] After his death Enfield was bought by investors
E & H P Smith who sold Enfield for £82,500 to Norton Villiers in 1967.[16] While Norton Villiers
acquired 33 per cent of Enfield India the assets of Enfield's diesel engine division and pedal
cycle and spares divisions were not picked up.[17]
Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967. The
company's last new bicycle was the 'Revelation' small wheeler, released in 1965.[18][better  source  needed]
[better  source  needed]
 Production of motorcycles ceased in 1970 and the original Redditch, Worcestershire-
25
based company was dissolved in 1971.[19]
Royal Enfield's spare parts operation was sold to Velocette in 1967, which benefitted from the
arrangement to such an extent that the company as a whole survived for another three years
until their closure in early 1971. C C Cooper, a West Bromwich metals dealer, continued to
produce limited spare parts for a short time by a small team of engineers.[20]
Enfield of India continued producing the 'Bullet', and began branding its motorcycles 'Royal
Enfield' in 1999. A lawsuit over the use of 'Royal', brought by trademark owner David Holder,
was judged in favour of Enfield of India, who now produce motorcycles under the Royal Enfield
name.[21] The models produced and marketed in India include Cafe Racers, Cruisers, Retros
and Adventure Tourers.

Products

Royal Enfield Quadricycle

By 1899, Royal Enfield were producing a quadricycle – a bicycle modified by adding a wrap-
around four-wheeled frame, retaining a rear rider-saddle with handlebars – having a front-
mounted passenger seat, driven by a rear-mounted De Dion engine.[22]
After experimenting with a heavy bicycle frame fitted with a Minerva engine clamped to the
front downtube, Enfield built their first motorcycle in 1901 with a 239 cc engine.

1907 Enfield 15

A light car was introduced in 1903 powered by either a French Ader V-twin or De Dion single
cylinder engine. In 1906 car production was transferred to a new company, the Enfield Autocar
Co Ltd with premises in Hunt End, Redditch. The independent company only lasted until 1908
when it was purchased by Alldays & Onions.[6]
In 1907, Enfield merged with the Alldays & Onions Pneumatic Engineering Co. of Birmingham,
and began manufacturing the Enfield-Allday automobile.
By 1910, Royal Enfield was using direct belt drive 297 cc Swiss Motosacoche V-Twin engines
which were enlarged to 344cc for 1911 with the advent of chain drive and the Enfield 2 speed
gear. Enfield hired Bert Colver from Matchless and competed in the 1911 Isle of Man
26
lightweight TT.

1913 Enfield 425cc

In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a 770 cc V-twin
JAP engine which was raced successfully in the Isle of Man TT and at Brooklands. Enfield
developed a prototype for the soon to arrive 1913 425cc model 140. The prototype was
Enfield's first in house manufactured V twin, also at 344cc, being of overhead inlet, side
exhaust layout.
First World War (1914–1918)
In 1914 Enfield supplied large numbers of motorcycles to the British War Department and also
won a motorcycle contract for the Imperial Russian Government. Enfield used its own
225 cc two-stroke single and 425 cc V-twin engines.[23] They also produced an 8 hp motorcycle
sidecar model fitted with a Vickers machine gun.
Inter-war years (1921–1939)

1923 Royal Enfield 225cc

In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-stroke
350 cc single using a Prestwich Industries engine. In 1928, Royal Enfield began using the
bulbous 'saddle' tanks and centre-spring girder front forks, one of the first companies to do so.
Even though it was trading at a loss in the depression years of the 1930s, the company was
able to rely on reserves to keep going. In 1931, Albert Eadie, one of the founders of the
company, died and his partner R.W. Smith died soon afterwards in 1933.
Second World War (1939–1945)

27
Royal Enfield 250 cc, type 11F

During World War II, The Enfield Cycle Company was called upon by the British authorities to
develop and manufacture military motorcycles. The models produced for the military were the
WD/C 350 cc sidevalve, WD/CO 350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV and WD/L
570 cc SV. One of the most well-known Enfields was the 125cc 2-stroke Royal Enfield WD/RE,
designed to be dropped by parachute with airborne troops.
In order to establish a facility not vulnerable to the wartime bombing of the Midlands, an
underground factory was set up, starting in 1942, in a disused Bath stone quarry at Westwood,
near Bradford-on-Avon, Wiltshire. Many staff were transferred from Redditch and an estate of
"prefabs" was built in Westwood to house them.
As well as motorcycle manufacture, it built other equipment for the war effort such as
mechanical "predictors" for anti-aircraft gunnery: the manufacture of such high precision
equipment was helped by the constant temperature underground. After the war the factory
continued, concentrating on engine manufacture and high precision machining. After
production of Royal Enfield motorcycles ceased, the precision engineering activities continued
until the final demise of the company.

Postwar Model G and Model J and ex-military C and CO

(1946–1954)
Postwar, Royal Enfield resumed production of the single cylinder ohv 350cc model G and
500cc Model J, with rigid rear frame and telescopic front forks. These were ride-to-work basic
models, in a world hungry for transport. A large number of factory reconditioned ex-military sv
Model C and ohv Model CO singles were also offered for sale, as they were sold off as surplus
by various military services.
In 1948, a groundbreaking development in the form of rear suspension springing was
developed, initially for competition model "trials" models (modern enduro type machines), but
this was soon offered on the roadgoing Model Bullet 350cc, a single cylinder OHV. This was a
very popular seller, offering a comfortable ride. A 500cc version appeared shortly after. A mid
1950s version of the Bullet manufacturing rights and jigs, dies and tools was sold to India for
manufacture there, and where developed versions continue to this day.

500 Twins, Meteors, Super Meteors and Constellations 1949–

1963
28
In 1949, Royal Enfields version of the now popular selling parallel twins appeared. This 500cc
version was the forerunner of a range of Royal Enfield Meteors, 700cc Super Meteors and
700cc Constellations. Offering good performance at modest cost, these sold widely, if
somewhat quietly in reputation. The 700cc Royal Enfield Constellation Twin has been
described as the first superbike.

250 cc models
The 250cc class was important in the UK as it was the largest engine which a 'learner' could
ride without passing a test. In the late 1950s and early 1960s, Royal Enfield produced a
number of 250 cc machines, including a racer, the 'GP'and a Scrambler, the 'Moto-X', which
used a modified Crusader frame, leading link forks and a Villiers Starmaker engine. The
Clipper was a base-model tourer with the biggest-seller being the Crusader, a 248 cc pushrod
OHV single producing 18 bhp (13 kW).

RE GT with flyscreen

RE GT with Avon Speedflow nosecone fairing

In 1965, a 21 bhp (16 kW) variant called the Continental GT, with red GRP tank, five-speed
gearbox (which was also an option on the Crusader), clip-on handlebars, rearset footrests,
swept pipe and hump-backed seat was launched. It sold well with its race-styling including a
fly-screen resembling a race number plate which doubled as a front number plate mount.[29]

RE Turbo Twin

The Avon 'Speedflow' full sports fairing was available as an extra in complementary factory
colours of red and white.[30]
29
Other variants were the Olympic and 250 Super 5, notable for use of leading-link front
suspension (all the other 250 road models had conventional telescopic forks) and the 250
'Turbo Twin', fitted with the Villiers 247 cc twin cylinder two-stroke engine.
The Royal Enfield GP production-volume racer was first raced in the Manx Grand Prix in
September, 1964. Developed in conjunction with Royal Enfield Racing Manager Geoff
Duke the first public appearance was at Earls Court Show in November, 1964. Using a duplex-
tube frame, leading link forks and one-piece tank and seat unit, the 250cc two-stroke single
engine was similar to other small capacity race machines offered from
rivals Greeves, Cotton, DMW and particularly Villiers, which provided the engines for these
marques and many other manufacturers and bike-builders including the 'Starmaker'
competition engine used for the Scorpion racer and Sprite scrambler.

Royal Enfield Interceptor[edit]

Royal Enfield Interceptor motorcycle

Main article: Royal Enfield Interceptor
Main article: Royal Enfield Interceptor 650
During the onslaught of the Japanese motorcycle manufacturers in the late sixties and early
seventies, the English factories made a final attempt with the 692cc Interceptor in 1960–
1961 followed in 1962–1968by the 736cc Series I and Series II Interceptors. Made largely for
the US market, it sported much chrome and strong performance, completing the quarter-mile in
less than 13 seconds at speeds well above 175 km/h (105 mph). It became popular in the US,
but the company was unable to supply this demand, which accelerated the demise of this last
English-made Royal Enfield.
The Redditch factory ceased production in 1967 and the Bradford-on-Avon factory closed in
1970, which meant the end of the British Royal Enfield. After the factory closed a little over two
hundred Series II Interceptor engines were stranded at the dock in 1970. These engines had
been on their way to Floyd Clymer in the US; but Clymer had just died and his export agents,
Mitchell's of Birmingham, were left to dispose of the engines. They approached the Rickman
brothers for a frame. The main problem of the Rickman brothers had always been engine
supplies, so a limited run of Rickman Interceptors were promptly built.
Royal Enfield Bullet 350 in front with license plate from Delhi, India

Enfield Indians[edit]
From 1955 to 1959, Royal Enfields were painted red, and marketed in the US as Indian
30
Motorcycles by the Brockhouse Corporation, who had control of the Indian Sales Corporation
(and therefore Indian Motorcycles) and had stopped manufacturing all American Indians in the
Springfield factory in 1953. But Americans were not impressed by the badge engineering, and
the marketing agreement ended in 1960, and from 1961, Royal Enfields were available in the
US under their own name. The largest Enfield 'Indian' was a 700 cc twin named the Chief, like
its American predecessors.

Royal Enfield (India)

Royal Enfield

Type Public

Industry Automotive

Founded 1955; 67 years ago (as Enfield Motors)

Headquarters Chennai, India[1]

Key people B Govindarajan

(CEO)

Products Royal Enfield Bullet, Royal Enfield Classic,

Royal Enfield Meteor 350, Royal Enfield

31
 Himalayan, Royal Enfield Interceptor
650, Royal Enfield Continental GT

Production output  846,000 units (2018)[2]

Revenue  ₹8,965.00 crore (US$1.2 billion) (2018)[2]

Operating income  ₹2,808.00 crore (US$370 million) (2018)[2]

Net income  ₹1,960 crore (US$260 million) (2018)[2]

Parent Eicher Motors

Website www.royalenfield.com

Royal Enfield is an Indian multinational motorcycle manufacturing company headquartered in

Chennai, Tamil Nadu, India. The company is the oldest global motorcycle brand in continuous
production,[3] and operates manufacturing plants in Chennai in India. The first Royal Enfield
motorcycle was built in 1901 by the Enfield Cycle Company of England, which was responsible
for the design and original production of the Royal Enfield Bullet, the longest-lived motorcycle
design in history.[4] Licensed from Royal Enfield by the indigenous Indian Madras Motors, the
company is now a subsidiary of Eicher Motors Limited, an Indian automaker.[5] The company
makes classic-looking motorcycles including the Royal Enfield Bullet, Classic 350, Meteor 350,
Classic 500, Interceptor 650, Continental and many more. Royal Enfield also make
adventurous and offroading motorcycles like Royal Enfield Himalayan. Their motorcycles are
equipped with single-cylinder and twin-cylinder engines.[6] First produced in 1901, Royal Enfield
is the oldest motorcycle brand in the world still in production, with the Bullet model enjoying the
longest motorcycle production run of all time.

History

Bullet with plain "Enfield" tank badge

32
Royal Enfield Bullet Electra 350, 2004

Royal Enfield Classic 350, 2010 model

Logo used from 1995 to early 2014

Royal Enfield Bullet, Lake Rewalsar. 2010

After the Indian Independence Act 1947 the new government looked for a suitable motorcycle
for its army to patrol the country's border. In 1952 the Royal Enfield Bullet was chosen as the
most suitable bike for the job. In 1954, the government ordered 800 in units of the 350 cc
model. In 1955, the Redditch company partnered with Madras Motors in India to form 'Enfield
India' to assemble, under licence, the 350 cc Royal Enfield Bullet motorcycle in Madras (now
called Chennai). The tooling was sold to Enfield India so that they could manufacture
components.[7] By 1962, all components were made in India. The Indian Enfield uses the 1960
engine (with metric bearing sizes), Royal Enfield still makes an essentially similar bike in the
350 cc and 500 cc models, along with several different models for different market segments.[8]
In 1990, Royal Enfield collaborated with the Eicher Group, an automotive company in India,
and merged with it in 1994.[9] Apart from bikes, Eicher Group is involved in the production and
33
sales of commercial vehicles and automotive gears. Although Royal Enfield experienced
difficulties in the 1990s, and ceased motorcycle production at their Jaipur factory in 2002,[10] by
2013 the company opened a new primary factory in the Chennai suburb of Oragadam on the
strength of increased demand for its motorcycles. This was followed in 2017 by the
inauguration of another new factory of a similar size to the facility at Oragadam (capacity
600,000 vehicles per year) at Vallam Vagadal. The original factory at Tiruvottiyur became
secondary, and continues to produce some limited-run motorcycle models.[11][12][13][14]
Flooding, produced by the heaviest rainfall in Chennai in over a century, caused Royal Enfield
to cut production by 4,000 motorcycles in November 2015, followed by a shutdown of the
plants in Thiruvottiyur and Oragadam on 1 December, as well as the company offices in
Chennai.[15] Production resumed at 50% capacity on 7 December and operations at both plants
were back to normal on 14 December.[16]
Royal Enfield announced its first takeover of another company in May, 2015 with the purchase
of a UK motorcycle design and manufacturing firm, Harris Performance Products,[17][18] that had
previously developed the chassis of the Royal Enfield Continental GT Cafe Racer.[19] Harris
work with the UK-based part of Royal Enfield's development team, who are based at the UK
Technology Centre at Bruntingthorpe Proving Ground in Leicestershire. The team was
established in January 2015, and moved into their new, purpose-built facility in May 2017. By
the end of 2019, the team numbered 155 and carries out the full spectrum of design and
development activities, from concept generation and clay design to engineering design,
prototyping and validation.
Royal Enfield currently sells motorcycles in more than 50 countries. Royal Enfield surpassed
Harley-Davidson in global sales in 2015.[20][21]

2014 Continental GT 535

In August 2015, Royal Enfield Motors announced it is establishing its North American
headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three bikes,
the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this engine size
represents an under-served market. The dealership will be Royal Enfield's first company-
owned store in the U.S., according to Rod Copes, president of Royal Enfield North America.[22]
[23]
 The company wants to establish about 100 dealerships in American cities starting with
Milwaukee.
Later in August 2015, parent-business Eicher announced its entry in Indonesia as a part of its
global strategy in the mid-sized (250–750 cc) motorcycle segment, initially starting retail
operations from a dealership in Jakarta.[24][25] From April to September, 2015, Royal Enfield's
domestic sales were 50% higher than the previous year, despite a declining motorcycle market
in India.[26]

34
 Interceptor and Continental GT[edit]
Main article: Royal Enfield Interceptor 650
Royal Enfield unveiled a 650 cc twin-cylinder engine at their Technology Centre
in Leicestershire, England, in November 2017 to power a new generation of Royal Enfield
motorcycles. It was showcased at the Milan Motorcycle Show on 7 November 2017 in Italy,
[27]
 where two motorcycles based on the engine, the Interceptor 650 and Continental GT 650
were revealed.[28] Both models were introduced to the US market in November 2018 to positive
reviews.[29][30] The Interceptor is marketed as the INT650 in the United States where Honda has a
trademark on the Interceptor name.[31] The 650cc twins are currently (2020–2021) the best-
selling motorcycles in Great Britain.[32]

2020 Meteor 350[edit]

Main article: Royal Enfield Meteor
Royal Enfield launched a new lineup of cruiser motorcycles on 6 November 2020. It replaced
the Thunderbird 350 and 350X series which were discontinued earlier that year. It uses a
349 cc single cylinder engine featuring a single overhead camshaft system (SOHC), and a
completely new engine with fewer moving parts than the 346 cc of the Classic 350.[33] It is the
first Royal Enfield to offer the Tripper Navigation system.[34]

Manufacturing plants[edit]
1. Thiruvottiyur, Chennai, Tamil Nadu, India[35]
2. Oragadam Industrial Corridor, Oragadam, Chennai, Tamil Nadu, India
3. SIPCOT Industrial Park, Vallam Vadagal, Chennai, Tamil Nadu, India[36]
4. Campana, Buenos Aires, Argentina[37]

35
CHAPTER-3

36
 3.1 THEORETICAL FRAMEWORK

REWARD SYSTEM

The achievement and benefit received by employees for their job performance in an organization
are known as reward. Employees join the organization within certain expectation of reward.
Some may be expecting for better salary and wages i.e., economic rewards while other may be
seeking for facilities like accommodation, transportation, health, safety and other benefits as
reward. Thus, economic and non-economic benefits provided by organization to employees for
their job performance regardless of their expectation is known as reward. Employees must be
communicated about the reward provision in an advance. Attractive and transparent reward
system must have quality to motivate and empower the dedicated and reliable employees.
Reward management also assist in planning the long term financial management.

Reward is an incentive plan to reinforce the desirable behavior of workers or employers and in
return for their service to the organization. Rewards can be monetary in the form of salary or
non- monetary in the form of awards for some special services to the company or simply giving
an employee a work which he enjoys doing. The primary objective of organizations in giving
rewards is to attract, maintain and retain efficient, high performing and motivated employees.

Developing an effective reward system can be a difficult task. The following sections provid e
some guidance on the basics of an effective reward system. These sections focus almost
exclusively on extrinsic rewards, but intrinsic rewards should also be considered when
developing each employee’s job.

Employee rewards could be considered a more tangible form of appreciation to the employees
who have achieved high quality work or displayed outstanding performance levels.
It could be said that rewards are slightly more costly to businesses as they often take the form of
bonuses and profit sharing. This system is proven to be just as effective as employee recognition
as it increases engagement and motivation levels significantly. Depending on the size of the
business, the rewards offered to the employees will vary.

37
Extrinsic rewards include all rewards that have a monetary value such as base pay, pay
contingent on performance, contribution, competency or skills. Pay related to service, financial
recognition schemes and benefit such as pensions, sick pay and health insurance. They are the
core elements in total rewards. While intrinsic rewards are good; at least when they provide
intrinsic motivation- that is motivation by work itself. A good reward system should satisfy
intrinsic and extrinsic needs for employee and if extrinsic reward can support for their employee’
life, intrinsic rewards will satisfy for their employee’s psychological needs.

Employee Rewards- 7 Important Types: Extrinsic Re wards, Intrinsic Rewards,

Monetary Rewards, Non-Monetary Rewards, Performance- Based Rewards and Few
others

Understanding how each employee perceives and values different rewards is an essential part of
management. Managers need to grasp an understanding of extrinsic and intrinsic rewards.

1. EXTRINSIC REWARDS-

Extrinsic rewards are external rewards tied to certain employee behavior’s, skills, time, or roles
in an organization. How employees perceive these rewards relevant to their performance and the
rewards given to others will ultimately determine the effectiveness of the rewards.

Managers also need to understand how much value each employee places on specific extrinsic
rewards. For example, a well-paid but overworked employee may value additional vacation time
or a reduced workload more than a few extra dollars. Money, praise, awards, and incentive prizes
such as tickets to a concert or a game are all examples of extrinsic motivators.

Whatever motivator the manager chooses, the employee must see the reward as a motivator for it
to be effective. For example, if the extrinsic reward is tickets to the opera, an employee who
hates the opera likely would not be motivated by the tickets. On the other hand, if the employee
is a football fan and the extrinsic reward is tickets to a major game, the motivator might be more
effective.

38
 2. INTRINSIC REWARDS-

It is simpler to explain what intrinsic rewards are by discussing what they are not. Intrinsic
rewards do not have an obvious external incentive; that is, people are not acting to get a tangible
reward, be it time off or money. Instead, they act because it feels good or provides some form of
internal satisfaction.

Intrinsic rewards are often more highly valued and more effective over time, yet using them is a
difficult managerial task. Intrinsic rewards derive from employees feeling good about the job
they have done, the effort they have put forward, or the role they played in a team project.

Intrinsic rewards in the workplace come from the job itself, so to provide intrinsic reinforcement;
a manager should enrich the job. Job enrichment involves improving work processes and
environments so they are more satisfying for employees, such as eliminating dysfunctional
elements or enlarging jobs (increasing the duties and responsibilities of a job).

3. MONETARY REWARDS-

Monetary rewards are most commonly given in the form of pay increases, bonuses, or increases
in benefits, such as pension or health care premiums. Such rewards can be divided into two
categories: direct and indirect compensation. Both contribute to the financial betterment of an
employee.

Direct compensation is relatively straightforward and consists of increases in hourly pay,

increases in hours (for non-salaried employees), increases in salary, merit pay based on
performance, seniority pay based on time with an organization, and bonuses based on the
achievement of individual, group, or organizational objectives.

4. NON-MONETARY REWARDS-

Non-monetary rewards cost the organization but do not directly improve the employee’s
financial position. Supplying employees with the best tools possible to do their job is an
example, such as providing a new high-end laptop or having an excellent training facility. A

39
good office location, choice of furnishings, or special parking place can all be nonmonetary
rewards.

Employees may not know the full details of pay and other monetary benefits of co-workers, but
nonmonetary rewards are often visible and can create perceptions of inequity in an organization.
In some cases, this may be the intent of managers who want employees to strive to achieve the
stereotypical corner office, but often it may also unintentionally encourage feelings of inequity.

That inequity may have positive implications for an organization if employees strive to increase
performance, or it can result in turnover and reduced performance. As with any reward,
nonmonetary rewards need to be carefully thought out before being implemented.

5. PERFORMANCE BASED REWARDS-

Performance-based rewards are allocated based on the performance of an employee in a

company. Performance-based rewards are given in the form of pay plans, incentive systems,
group bonuses, or commissions. One of the most difficult challenges for managers is to decide
what to base rewards on. A common distinction is performance- based versus membership-based
rewards. As the name implies, performance-based rewards are tied to the ability of an individual,
team, group, or organization to meet some previously agreed- upon standard of performance.
Performance rewards are based on an evaluation of contribution and awards are allocated based
on that evaluation.

6. MEMBERSHIP BASED REWARDS-

Membership-based rewards are allocated solely for being part of a group within an organization.
These rewards commonly include annual cost-of-living increases to a base salary or support for
an equity policy. For example, if a park and recreation department was looking to encourage
staff to have master’s degrees or obtain certification, they might offer pay incentives for having
either or both.

Membership-based rewards are also often tied to length of time with an organization. For
instance, after a certain length of service with an organization, employees may receive a certain

40
percentage increase to their pay or be eligible for additional benefits. In a unionized
environment, many of these rewards are spelled out in a labor agreement.

To illustrate the difference between the two structures, let’s look at annual raises. A
performance-based structure means that each employee’s performance is evaluated and raises are
based on performance, with the highest performers getting the most mo ney.

A membership-based structure means that all employees receive the same raise regardless of
performance. Membership structures can be de- motivating to high performers because they get
the same rewards despite working harder.

EMPLOYEE PERFORMANCE

Employee performance refers to how your workers behave in the workplace and how well they
perform the job duties you've obligated to them. Your company typically sets performance
targets for individual employees and the company as a whole in hopes that your business offers
good value to customers, minimizes waste and operates efficiently.

For an individual employee, performance may refer to work effectiveness, quality and efficiency
at the task level. Your salesperson, for example, may be expected to complete a certain quota of
calls to potential leads per hour with a specific portion of those resulting in closed sales. On the
other hand, a production worker may have performance requirements for product quality and
hourly output.

Individual performance affects your team and organizational performance. If you have
employees who can't keep up or who perform subpar work, this means that other workers may
have to pick up the slack or that you have to have work redone. When employee performance
is poor, you may not be able to satisfy your customers and thus see negative impacts on your
profits, company reputation and sales.

41
Measuring employee performance will differ across roles and departments, but generally, it can
be measured by:

1. Speed and efficiency – How much does the employee accomplish in an average day,
month, or quarter? Are there impediments to address or possible resources to consider
that could enable higher productivity?
2. Quality and depth – How “good” is the employee’s work in comparison to colleagues and
other employees in the same role, field, or industry? Does the employee contribute
something unique to their role that brings the company added value?
3. Trust and consistency – Can the employee be depended on to make good decisions and
execute their duties on time? Do they need to be managed meticulously or do they self-
manage well? Do they demonstrate the potential to grow within the company, or has
their growth plateaued?

The specifics of these metrics will differ depending on the specific job function. All employees
(and their supervisors) should be aligned on the goals and expectations that underpin each
metric. By establishing clear objectives and timelines for achieving them, each employee should
understand exactly what is expected of them.

Employee Rewards- Purpose of Employee Rewards in Organizations

Reward systems serve several purposes in organizations. Effective reward systems help an
organization be more competitive, retain key employees, and reduce turnover. Reward systems
also can enhance employee motivation and reinforce the image of an organization among key
stakeholders or future employees. Reward system is developed to make performance more
effective. Reward is based on performance which is outcome of efforts and environmental
factors.

People are the most important resource for organizational competitiveness, and keeping them on
the job is a key task for any manager. Competition to attract and keep the best employees is
intense. For people looking for a career opportunity, that’s great news, but as a manager of an
organization needing to keep the best and brightest, it is a challenge.

42
It may be even harder in the non-profit and public sectors where flexibility in providing financial
rewards may be more limited than in a commercial context. Retaining employees saves money
on retraining costs, improves the consistency of services, and allows for relationships to develop
between clients and the organization.

In addition, proper rewards systems can reduce absences. Absences cause innumerable
headaches for managers. Instructors who don’t show up, too few staff members at busy times,
and the lack of a clean-up crew can all increase workplace stress. Absences not only affect the
manager but also fellow employees who need to pick up the slack and clients who feel the brunt
of too few employees on site.

Effective use of rewards can encourage employees to gain the skills that are ne cessary to help
them and the organization grow. This can also increase their desire to continue being part of the
organization. For example, an organization can pay and provide time off for employees who
want to take advanced courses in an area that is valuable for the organization. Some
organizations may even provide time off or support to help employees advance their own
personal goals or skill sets.

Similarly, the purpose of reward is to provide positive reinforcement and motivate them for
achieving outstanding performance. People work for achieving several needs. They want not
only money but also recognition, return and self-satisfaction. The purpose of reward is to
motivate them. The motivation differs from time to time depending upon situation, interests and
tastes.

Reward is to attempt to motivate job performance through selective distribution. Valued

employees are retained if they are properly rewarded. The organization continues to develop
through reward motivation.

43
CHAPTER-4

44
 4.1DATA ANALYSIS AND INTERPRETATION

1. Are you aware about the present boom in Market?

a) Yes
b) No

Options No of responses Percentage of responses

Yes 41 82%
No 09 18%
Total 50 100%

Percentage of responses
No

Ye s

Yes

Data Analysis:

From the above data, it can be understood that majority of the respondents selected Yes, while a
good percentage of the respondents selected No when asked if they are aware of the reward
system that is practiced in their company.

45
 2. What method do you follow for marketing of your products?
a) Both
b) Only Direct sales Method
c) Only Indirect Dealership Method

Options No of responses Percentage of responses

Both 35 70%
Only Direct sales 9 18%
Method
Only Indirect 6 12%
Dealership Method
Total 50 100%

Percentage of responses

18%

12%

70%

both Only Direct sales Method Only Indirect Dealership Method

Data Analysis:

From the above data, it can be understood that majority of the respondents selected both, while a
good percentage of the respondents selected Somewhat, while very few of them selected No
when asked if they thought whether the reward system in the company was followed genuinely.

46
 3. Do you think Advertisement is an effective method of selling your
automobile products??
a) Yes
b) No

Options No of responses Percentage of

responses
Yes 42 84
No 8 16
Total 50 100%

Percentage of responses

16%

84%

Yes No

Data Analysis:

From the above data, it can be understood that majority of the respondents selected Yes while a
good percentage of the respondents selected No when asked if they were ever been rewarded by
their organization for their performance.

47
 4. What type of advertising will be helpful in increasing salability of your auto
Products ?
c) Product specific
d) Company specific
e) Personality oriented
f) Do not know / Cannot say

Options No of responses Percentage of responses

Product specific 13 26

Company specific 23 46

Personality oriented 8 16
Do not know / Cannot say 6 12

Total 50 100%

Percentage of

12
26
16

46

Highly satisfiedSatisfiedDissatisfiedHighly

Data Analysis:

From the above data, it can be understood that, majority of the respondents selected Satisfied,
while a good percentage of the respondents selected Highly satisfied, while a few of the
respondents selected Dissatisfied and highly dissatisfied when asked if they were satisfied with
the rewards they received.

48
 5. Do you think that branding helps in the marketing of your automobile
products?
g) Yes
h) No

Options No of responses Percentage of responses

Yes 37 74
No 13 26
Total 50 100%

Percentage of

26

74

Yes

Data Analysis:

From the above data, it can be understood that majority of the respondents selected Yes while a
good percentage of the respondents selected No when asked if they would still perform the same
even without being rewarded by the organization.

49
 6. Do you think that auto fairs are effective methods of sale promotion?
i) Yes
j) No

Options No of responses Percentage of responses

Yes 44 88
No 6 12
Total 50 100%

Percentage of responses

12%

88%

Yes No

Data Analysis:

From the above data, it can be understood that, majority of the respondents selected Yes, while a
good percentage of the respondents selected No when asked if rewards bring a positive impact
on employee performance.

50
 7. How do the Foreign Automobile Companies affect the prospects of the domestic
players in the Indian market?
k) have reduced the profit margin of the domestic players
l) have made the automobile industry more competitive.
m) do not have significant effects on the domestic players operating in the automobile
industry
n) do not know / ca not say

Options No of responses Percentage of responses

have made the automobile 21 42
industry more competitive.

have reduced the profit margin 9 18

of the domestic players

do not have significant effects 8 16

on the domestic players
operating in the automobile
industry

do not know / cannot say 12 24

Total 50 100%

Percentage of

24
42

16

18

Monetary Non-monetary Salary Promotio

51
 8. How does the management acknowledge your performance?
o) Monetary rewards
p) Non-monetary rewards
q) Salary raises
r) Appreciation
s) Promotion
Options No of responses Percentage of responses
Monetary rewards 20 40
Non-monetary rewards 5 10
Salary raises 10 20
Appreciation 9 18
Promotion 6 12
Total 50 100%

Percentage of

12

40
18

20
10

Monetary Non-monetary Salary Appreciatio Promotio

Data Analysis:
From the above data, it can be understood that, majority of the respondents selected Monetary
rewards, while a good percentage of the respondents selected Salary raises, while few of the
respondents selected Appreciation, Promotion, and Non- monetary rewards when asked how does
the management acknowledge their performance.

52
 9. Employees are always expectant of timely payment of allowances and bonuses; it
enhances performance of the employees greatly.
t) Agree
u) Strongly agree
v) Disagree
w) Strongly disagree

Options No of responses Percentage of responses

Agree 8 16
Strongly agree 36 72
Disagree 5 10
Strongly disagree 1 2
Total 50 100%
Percentage of responses
1016

72

AgreeStrongly agreeDisagreeStrongly

Data Analysis:

From the above data, it can be understood that, majority of the respondents selected to Strongly
agree, while a good percentage of the respondents selected Agree, while a few selected to
Disagree, and one of the respondents selected Strongly Disagree when asked if the employees
are always expectant of timely payment of allowances and bonuses, it enhances performance of
the employees greatly.

53
 10. Do you think that Foreign Direct Investment (FDI) should be allowed in the
auto mobile sector in India?
a. Yes
b. No
c. Do not know/ Cannot say

Options No of Percentage of
Responses Responses
Yes 17 34

No 16 32

Do not know/ Cannot say 17 34

Total 50 100%

Percentage of responses
Percentage of
responses
1st Qtr 2nd Qtr 3rd Qtr
4%
4%

18
34% 34%

Bonu Commission/Incenti Promotions and Pay All of the

32%

54
11. Do you follow branding of products as a Marketing strategy?
a. Yes
b. No
c. DO not know/can not say

Options No of Responses Percentage of Responses

yes 11 22
no 25 50
0 0

Total 50 100%

Percentage of responses
YesNoDO not know/can not say

21%

5%

74%

55
 12. Does branding of products helps to improve the marketing potential of your
products?
a. Yes
b. No
c. DO not know/cannot say

Options No of responses Percentage of responses

YES 34 68
NO 6 12
DO not know/ cannot say 10 20
Total 50 100%

Percentage of responses

YES NO DO not know/ cannot say

20%

12%

68%

Data Analysis:

From the above data, it can be understood that, majority of the respondents selected all of the
above, while a good percentage selected more than two of the above, while few selected one of
the above, and none of the respondents selected none of the above when asked which of the
intrinsic rewards motivate them the most to increase their level of performance.

56
13. Future of the automobile industry in India?
a. The boom will continue
b. The boom is a temporary economic situation
c. Do not know/ Cannot say

Options No of responses Percentage of responses

The boom will continue 37.5 75

The boom is a temporary 6 12

economic situation

Do not know/ Cannot say 6.5 13

Total 50 100%

Percentage of responses

The boom will continue The boom is a temporary economic situation

Do not know/ Cannot say

13%

12%

75%

57
 14. Major Weakness of Maruti Suzuki's Marketing strategy ?
a. Branding
b. Publicity
c. Infrastructure assessment and Development

Options No of responses Percentage of responses

Branding 29 14
Publicity 14 09
Infrastructure assessment and 5 77
Development
Total 50 100%

Sales
Branding Publicity Infrastructure assessment and Development

14%

9%

77%

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 15. Maruti Suzuki has a future growth. You opinion?
1) Maruti Suzuki is gradually spreding its wings and being a very big company has the
capacity to absorb short term losses, hence has a very good prospect for the future
market in India.
2) Its future is like any other private automobile companies in India
3) do not know/ cannot say

Options No of responses Percentage of responses

Maruti Suzuki is gradually 35 75
spreding
Its future is like any other 7 20
private automobile companies
in India
do not know/ cannot say 3 5
Total 50 100%

Sales
Maruti Suzuki is gradually spreding

Its future is like any other private automobile companies in India do not know/ cannot say

5%
20%

75%

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16. The reward system facilitates the implementation of strategy by attracting
and retaining the right kind of people.
a. Agree
b. Strongly agree
c. Disagree
d. Strongly disagree

Options No of responses Percentage of responses

Agree 18 36
Strongly agree 26 52
Disagree 4 8
Strongly disagree 2 4
Total 50 100%

Percentage of

8 4
36

52

AgreeStrongly agreeDisagreeStrongly

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CHAPTER-5

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 1.1 SUMMARY

The study in brief explained us about the Reward system and types of the Rewards provided to
the employees in general in any organization. It also discussed the objectives and need for the
study and limitations for the study and other constraints that occurred due to the Covid-19
pandemic. Also, we have seen about the Automobile industry in India and how it has been
growing further Maruti Suzuki’s Company profile has been discussed in detail with its history
and growth, also the products of the company etc. Also, the study has a Questionnaire with a
sample size of 50 respondents collected from the employees of Varun Motors, Gajuwaka to
examine the reward system followed in their company and also whether the employees are
satisfied with the rewards they receive for their performance and to know whether the Rewards
increase their level of performance in the Organization.

Research methodology has also been included in the study and also theoretical framework of
Reward system and its types its importance has been discussed as well. The data analysis and
interpretation are done on the basis of the questionnaire with the help of the collected data from
the employees from Varun Motors, Gajuwaka also the data with percentages are been
represented with Pie Charts for each and every question with interpretation.

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 1.2 FINDINGS
The findings are based on the responses from the
respondents. These are as below:
•85% of the respondents are owning a motor bike
while 15% do not own motor bike but instead may
own scooter etc. Popularity of Royal Enfield in
comparison to competitors.
•34% of the respondents prefer Royal Enfield, 25%
prefer Bajaj,16% for Honda and LML, 8% for TVS
and 1% others Most popular product of Royal
Enfield.
•33% of the respondents prefer Splendor, 25% for
Dawn, 17% for Passion, 12% for CBZ and 8% and
5% for Glamour and Karizma respectively.

 It is observed that majority of the employees are aware of the Maruti Suzuki’s Reward
System, and most of them think that the Reward system in Varun Motors, Gajuwaka has
been followed genuinely.
 It is observed that majority of the respondents are from the entry level while a few of
them are from the middle level but none of them are from the top management.
 Majority of the employees in Varun Motors, Gajuwaka are been previously rewarded
and are satisfied with the rewards they received.
 Most of the employees responded that they would perform the same even without
being rewarded by the company.
 Majority of the respondents responded that the reward system brings a positive impact
on employee performance while a few of them are opposite to the same.
 It is observed that Majority of the respondents believe that Monetary rewards would
motivate the employees to increase their performance.
 It is observed that Varun Motors, Visakhapatnam acknowledges its employees’
performance by providing them with Monetaryrewards.
 It was observed that most of the employees agree that they are provided with
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 Bonuses, Commissions/Incentives, Pay raises as Monetary rewards.
 Majority of the respondents agree that employees are always expectant of timelypayment
of allowances and bonuses, as it enhances the employee performance.
 Most of the respondent’s feel that extrinsic rewards can enhance their performance to
a very great extent.
 Also, a good percentage of the respondents feel that the intrinsic rewards too
enhance their performance from inside out to a very great extent.
 Majority of the respondents strongly agreed that reward system facilitates the
implementation of strategy by attracting and retaining the right kind
ofpeople.

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 1.3 SUGGESSIONS

The suggestions made in this study are personal opinions and should not be considered as facts.
No research has been conducted on how well the suggestions would work in real- life and should
therefore be taken merely as good advice. So, some of them are as follows:

 Non-Monetary and monetary rewards must be provided equally to the employees in order
to increase their performance level.
 The company has to make sure whether each and every employee is aware of the
company’s Reward system or not, if not they have to educate the employees on
the designed Reward system of the company.
 Varun Motors, Gajuwaka is providing more Monetary Rewards to the employees other
than the non-Monetary rewards; it should consider providing some more non-Monetary
rewards to the employees like Childcare, Free meals, and other benefits.
 Performance benefits must be given to the employees in equal and right manner to
increase the employee performance.
 The company has to build a healthy environment where employees would feel
belongingness towards their work and company in-spite of them not being rewarded
sometimes, as it was observed that some of the respondents selected No when asked if
they would perform the same without being rewarded.
 Childcare facility has to be provided to the working men and women in order to enable
smooth working of the employees while their children are being taken care of.

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 LIMITATION

The limitation of the survey is narrated below:

•The project is valid for Srikakulam city only.

•It was not possible to cover each and every show room due to time constrains.

•There may be some biased response form the respondents.

•Some respondents did not provide the full data.

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 CONCLUSION

Study which we conducted on the two-wheeler auto mobile sector is a very important
topic of auto mobile sector.
•Two-wheeler auto mobile sector is the back bone of the auto mobile sector in India.
After deep research, analysis and getting information about companies as formulated that
the two-wheeler auto mobile companies achieved success in the market.
•Throughout the study we found the Two-wheeler manufacturer having very new and
modern technology in their bikes, they have a good market share in India, many of
MNC's like Royal Enfield, Honda, Yamaha, Suzuki are also giving large competition.

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68
 QUESTIONNAIRE

NAME:

GENDER: M ( ) F ( )

AGE: Below 20 ( )

20-30 ( )

31-40 ( )

41-50 ( )

Above 50 ( )

MARITAL STATUS: Married ( ) Unmarried ( )

1. Are you aware about the present boom in Market?

a) Yes
b) No

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 BIBLIOGRAPHY

 Reward Management: Employee Performance, Motivation and Pay- DAVID A.

HUME, 1995
 The Maruti Story- R. C. BHARGAVA with SEETHA
 Designing and Implementing Reward Programs: Finding a Better Way-
PAULB. BRITTON, CHRISTIAN M. ELLIS
 https://en.wikipedia.org/wiki/Maruti_Suzuki
 https://www.ibef.org/industry/india-automobiles.aspx
 https://www. mbaskool.com/business -concepts/human-resources-hr-terms/16854 -
reward.html

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