PROJECT REPORT

ON

“A STUDY ON CUSTOMER SATISFACTION TOWARDS

ROYAL ENFIELD BIKES, BANGALORE”

SUBMITTED IN PARTIAL FULFILLMENT OF BACHELOR OF

BUSINESS MANAGEMENT DEGREE COURSE OF BANGALORE
UNIVERSITY

2010-2011

BY

VENU.S

Reg No.08YAC08170

UNDER GUIDENCE OF

MS. RAJANI KORAH

GAIN MORE KNOWLEDGE

REACH GREATER HEIGHTS

PRESIDENCY COLLEGE, KEMPAPURA, HEBBAL,

BANGALORE-560024
 DECLARATI0N

I hereby declare that this titled as “A STUDY ON CUSTOMER

SATISFACTION TOWARDS ROYAL ENFIELD BIKES,

BANGALORE” is my original work under the guidance of Ms.Rajani Korah,

towards the partial fulfilment of the requirements for BBM course of Bangalore

University. This has not been submitted earlier for award of any other degree by

Bangalore University or any other University.

DATE: NAME: VENU.S

PLACE: BANGALORE REG NO: 08YAC08170

 ACKNOWLEDGEMENT

It gives me tremendous pleasure in bringing out this project entitled “A STUDY

ON CUSTOMER SATISFACTION TOWARDS ROYAL ENFIELD BIKES,
BANGALORE” taken up during my final year BBM degree course.

I am thankful to Mr. MUDDU VINAY Principal and Mr. PRADEEP SHINDE

Head of Dept of Presidency College for granting me permission for this work and
the help extended to me during the course of this project.

I express my deep gratitude and indebtedness towards my guide Ms. Rajani Korah
for her valuable guidance and assistance through stimulating discussion during
the course of this project work.

I am deeply indebted to Mr. Deepak Rajkumar, SALES MANAGER, Royal

Enfield, A Unit of Eicher Motors Ltd. for giving me the opportunity to undertake
this project work in their esteemed company. Their valuable guidance has been at
most useful.

Last but not the least I would like to thank my parents, friends and all other
respondents for co-operating with me in this work during my study and making
this a successful one.

NAME: VENU.S
REG NO: 08YAC08170
SL. NO. CONTENTS PAGE
NO
1. CHAPTER 1- INTRODUCTION 1-40
This chapter contains introduction to Marketing,
Meaning, Definition, Importance and other relevant
aspects of Customer Satisfaction, the theoretical
background to Automobile Industry till date and
Indian two wheeler markets.
2. CHAPTER 2- RESEARCH DESIGN 41-51
 Statement of problem
 Objectives of study
 Scope of study
 Operational Definitions
 Research Methodology
 Tools of Data collection
 Sample Design
 Plan of Analysis
 Limitations of the study
 Overview of Chapter scheme
3. CHAPTER 3- COMPANY PROFILE 52-77
This chapter contains the historical background of the
company, company vision, objectives, and SWOT
analysis.
4. CHAPTER 4- DATA ANALYSIS AND 75-114
INTERPRETATION
Analysis and interpretation from the data collected
through questionnaires, Tables and graphs
representing it.
5. CHAPTER 5- SUMMARY OF FINDINGS 115-120
AND CONCLUSIONS
This chapter contains the findings drawn from the
study.
6. CHAPTER 6- SUGGESTIONS 121-123
This chapter consists few suggestions to the company
7. ANNEXURES
This chapter contains Questionnaire.
8. BIBLIOGRAPHY
Name of the books, author, magazines and websites.
 INDEX OF THE TABLES
TABLE TABLE NAMES PAGE
NO NO
1. Table showing the profile of the respondents based 75
on age

2. Table showing the profile of the respondents based 77

on gender

3. Table showing the occupation of respondents 79

4. Table showing the annual income group of 81

respondents

5. Table showing the model of the Royal Enfield the 83

respondents presently own

6. Table showing the purchasing way of the customers 85

7. Table showing the no of respondents considering 87

other motorcycle while purchasing Royal Enfield
bike

8. Table showing the source of awareness for 89

customers while buying their Royal Enfield bike

9. Table showing the mileage of Royal Enfield after 91

purchase of bike

10. Table showing the breakdown of bikes since 93

purchase of vehicle

11. Table showing the place of purchase of Royal 95

Enfield bikes and their satisfaction response
towards it

12. Table showing the availability of spare parts in the 97

market
13 Table showing the major problems after purchasing 99
Royal Enfield bike
14. Table showing the rating by the respondents for 101
their satisfaction level with respect to power and
pick up

15. Table showing the rating by the respondents for 103

their satisfaction level with respect to comfort and
safety

16 Table showing the rating by the respondents for 105

their satisfaction level with respect to after sales
service

17. Table showing the respondents opinion of the major 107

barrier for not purchasing Royal Enfield bikes by
non-bullet riders

18. Table showing the place of service of respondents 109

bike

19. Table showing the respondents opinion and level of 111

satisfaction about the company taking action
towards complaints lodged by the customers

20. Table showing the respondents opinion about 113

participating in the rider mania organized by the
Royal Enfield club
 INDEX OF THE GRAPHS
GRAPH GRAPH NAMES PAGE
NO NO
1. Graph showing the profile of the respondents based 76
on age

2. Graph showing the profile of the respondents based 78

on gender

3. Graph showing the occupation of respondents 80

4. Graph showing the annual income group of 82

respondents

5. Graph showing the model of the Royal Enfield the 84

respondents presently own

6. Graph showing the purchasing way of the 86

customers

7. Graph showing the no of respondents considering 88

other motorcycle while purchasing Royal Enfield
bike

8. Graph showing the source of awareness for 90

customers while buying their Royal Enfield bike

9. Graph showing the mileage of Royal Enfield after 92

purchase of bike

10. Graph showing the breakdown of bikes since 94

purchase of vehicle
11. Graph showing the place of purchase of Royal 96
Enfield bikes and their satisfaction response
towards it

12. Graph showing the availability of spare parts in the 98

market

13 Graph showing the major problems after purchasing 100

Royal Enfield bike
14. Graph showing the rating by the respondents for 102
their satisfaction level with respect to power and
pick up

15. Graph showing the rating by the respondents for 104

their satisfaction level with respect to comfort and
safety

16 Graph showing the rating by the respondents for 106

their satisfaction level with respect to after sales
service

17. Graph showing the respondents opinion of the 108

major barrier for not purchasing Royal Enfield
bikes by non-bullet riders

18. Graph showing the place of service of respondents 110

bike

19. Graph showing the respondents opinion and level of 112

satisfaction about the company taking action
towards complaints lodged by the customers

20. Graph showing the respondents opinion about 114

participating in the rider mania organized by the
Royal Enfield club
 CHAPTER 1
INTRODUCTION
INTRODUCTION TO MARKETING
Marketing is the process of performing market research, selling products and/or

services to customers and promoting them via advertising to further enhance sales.

It generates the strategy that underlies sales techniques, business communication,

and business developments. It is an integrated process through which companies

build strong customer relationships and create value for their customers and for

themselves.

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 concluded

that marketing management is one of the major components of business

management. Marketing evolved to meet the stasis in developing new markets

caused by mature markets and overcapacities in the last 2-3 centuries. The

adoption of marketing strategies requires businesses to shift their focus from

production to the perceived needs and wants of their customers as the means of

staying profitable.
The term marketing concept holds that achieving organizational goals depends on

knowing the needs and wants of target markets and delivering the desired

satisfactions. It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy these

more effectively than competitors.

An orientation, in the marketing context, related to a perception or attitude a firm

holds towards its product or service, essentially concerning consumers and end-

users. Throughout history, marketing has changed considerably in time with

consumer tastes.

Contemporary approaches

Recent approaches in marketing include relationship marketing with focus on the

customer, business marketing or industrial marketing with focus on an

organization or institution and social marketing with focus on benefits to society.

New forms of marketing also use the internet and are therefore called internet

marketing or more generally e-marketing, online marketing, search engine

marketing, desktop advertising or affiliate marketing. It attempts to perfect the

segmentation strategy used in traditional marketing.

Customer orientation

A firm in the market economy survives by producing goods that persons are

willing and able to buy. Consequently, ascertaining consumer demand is vital for

a firm's future viability and even existence as a going concern. Many companies

today have a customer focus (or market orientation). This implies that the

company focuses its activities and products on consumer demands. Generally,

there are three ways of doing this: the customer-driven approach, the market

change identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic

marketing decisions. No strategy is pursued until it passes the test of consumer

research. Every aspect of a market offering, including the nature of the product

itself, is driven by the needs of potential consumers. The starting point is always

the consumer. The rationale for this approach is that there is no reason to spend

R&D funds developing products that people will not buy. History attests to many

products that were commercial failures in spite of being technological

breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA

(Solution, Information, Value and Access). This system is basically the four Ps

renamed and reworded to provide a customer focus. The SIVA Model provides a
demand/customer-centric alternative to the well-known 4Ps supply side model

(product, price, placement, promotion) of marketing management.

Product → Solution

Price → Value

Place → Access

Promotion → Information

If any of the 4Ps were problematic or were not in the marketing factor of the

business, the business could be in trouble and so other companies may appear in

the surroundings of the company, so the consumer demand on its products will

decrease.

Organizational orientation

In this sense, a firm's marketing department is often seen as of prime importance

within the functional level of an organization. Information from an organization's

marketing department would be used to guide the actions of other departments

within the firm. As an example, a marketing department could ascertain (via

marketing research) that consumers desired a new type of product, or a new usage

for an existing product. With this in mind, the marketing department would
inform the R&D department to create a prototype of a product/service based on

consumers' new desires.

The production department would then start to manufacture the product, while

the marketing department would focus on the promotion, distribution, pricing,

etc. of the product. Additionally, a firm's finance department would be consulted,

with respect to securing appropriate funding for the development, production and

promotion of the product. Inter-departmental conflicts may occur, should a firm

adhere to the marketing orientation. Production may oppose the installation,

support and servicing of new capital stock, which may be needed to manufacture

a new product. Finance may oppose the required capital expenditure, since it

could undermine a healthy cash flow for the organization.

Marketing research

Marketing research involves conducting research to support marketing activities,

and the statistical interpretation of data into information. This information is then

used by managers to plan marketing activities, gauge the nature of a firm's

marketing environment and attain information from suppliers. Marketing

researchers use statistical methods such as quantitative research, qualitative

research, hypothesis tests, Chi-squared tests, linear regression, correlations,

frequency distributions, poison distributions, binomial distributions, etc. to

interpret their findings and convert data into information. The marketing research
process spans a number of stages, including the definition of a problem,

development of a research plan, collection and interpretation of data and

disseminating information formally in the form of a report. The task of marketing

research is to provide management with relevant, accurate, reliable, valid, and

current information. A distinction should be made between marketing research

and market research. Market research pertains to research in a given market. As

an example, a firm may conduct research in a target market, after selecting a

suitable market segment. In contrast, marketing research relates to all research

conducted within marketing. Thus, market research is a subset of marketing

research.

Market segmentation

Market segmentation pertains to the division of a market of consumers into

persons with similar needs and wants. For instance, Kellogg's cereals, Fro sites

are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both

goods denote two products which are marketed to two distinct groups of persons,

both with similar needs, traits, and wants. Market segmentation allows for a better

allocation of a firm's finite resources. A firm only possesses a certain amount of

resources. Accordingly, it must make choices (and incur the related costs) in

servicing specific groups of consumers. In this way, the diversified tastes of

contemporary Western consumers can be served better.

Types of marketing research

Marketing research, as a sub-set aspect of marketing activities, can be divided

into the following parts:

 Primary research (also known as field research), which involves the

conduction and compilation of research for a specific purpose.

 Secondary research (also referred to as desk research), initially conducted

for one purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research

conducted into health foods, which is used solely to ascertain the needs/wants of

the target market for health foods. Secondary research in this case would be

research pertaining to health foods, but used by a firm wishing to develop an

unrelated product.

Primary research is often expensive to prepare, collect and interpret from data to

information. Nevertheless, while secondary research is relatively inexpensive, it

often can become outdated and outmoded, given that it is used for a purpose other

than the one for which it was intended. Primary research can also be broken down

into quantitative research and qualitative research, which, as the terms suggest,

pertain to numerical and non-numerical research methods and techniques,

respectively. The appropriateness of each mode of research depends on whether

data can be quantified (quantitative research), or whether subjective, non-numeric

or abstract concepts are required to be studied (qualitative research).

There also exist additional modes of marketing research, which are:

 Exploratory research, pertaining to research that investigates an

assumption.

 Descriptive research, which, as the term suggests, describes "what is".

 Predictive research, meaning research conducted to predict a future

occurrence.

 Conclusive research, for the purpose of deriving a conclusion via a research

process.

Promotion (marketing)

Promotion is one of the four elements of marketing mix (product, price,

promotion, distribution). It is the communication link between sellers and buyers

for the purpose of influencing, informing, or persuading a potential buyer's

purchasing decision. Fundamentally, however there are three basic objectives of

promotion. These are:

1. To present information to consumers as well as others

2. To increase demand

3. To differentiate a product.
Marketing strategy

The field of marketing strategy encompasses the strategy involved in the

management of a given product. A given firm may hold numerous products in the

marketplace, spanning numerous and sometimes wholly unrelated industries.

Accordingly, a plan is required in order to effectively manage such products. For

example, a start-up car manufacturing firm would face little success should it

attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car

maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the

issue of divest, or a ceasing of production, may be made.

CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. Customer

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

customers, whose reported experience with a firm, its products, or its services

(ratings) exceeds specified satisfaction goals." It is seen as a key performance

indicator within business and is part of the four of a Balanced Scorecard. In a

competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy. Within organizations, customer satisfaction ratings

can have powerful effects. They focus employees on the importance of fulfilling

customers’ expectations. Furthermore, when these ratings dip, they warn of

problems that can affect sales and profitability. These metrics quantify an

important dynamic. When a brand has loyal customers, it gains positive word-of-

mouth marketing, which is both free and highly effective. In researching

satisfaction, firms generally ask customers whether their product or service has

met or exceeded expectations. Thus, expectations are a key factor behind

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

would be deemed superior in “absolute” terms.

CUSTOMER SATISFACTION IN 7 STEPS

1. Encourage Face-to-Face Dealings

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 the course of

a project.

2. Respond to Messages Promptly & Keep Your Clients Informed

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'll

contact 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.

3. Be Friendly and Approachable

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 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.

4. Have a Clearly-Defined Customer Service Policy

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 anywhere

else it may be useful.

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.

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

welcomed, wanted and valued.

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.

7. Honor Your Promises

It's possible this is the most important point in this article. The simple

message: when you promise something, deliver. Clients don't like to be

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

and sub-contractors don't always deliver on time. In this case a quick apology and

assurance it'll be ready ASAP wouldn't go a miss.

CUSTOMER LOYALTY
 Obtaining a thorough understanding of customer loyalty is a prerequisite

for the execution of the research at hand. For that, the development of customer

loyalty research within the framework of relationship marketing will be presented

first, before different customer loyalty concepts will be introduced. From these

concepts, a definition of customer loyalty for use in this study will be derived,

before both consequences and antecedents of customer loyalty will be portrayed.

Since the beginning of the 1990s, customer loyalty has gained importance

both in relationship marketing research and in business. In business, this can be

attributed to changing market- and competition-environments. Due to a shift from

a sellers’ to a buyers’ market and because of an increasing degree of globalization,

most industries find themselves confronted with new challenges. In a first phase,

firms tried to face these challenges by focusing on their internal processes and

organizational structures, trying to achieve cost reductions by concentrating on

internal improvements. A second phase of external focus followed, where firms

directed attention to their customers, trying to retain 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 entry, a basis for a price premium, time

to respond to competitor innovations, and a bulwark against deleterious price

competition. Loyalty is critical to brand volume, is highly correlated to market

share, and can be used as the basis of predicting future market share;
consequently, understanding loyalty appears critical to any meaningful analysis

of marketing strategy.

In marketing research, two trends mark the development of customer

loyalty. While individual transactions initially were in the center of marketing

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.

This approach, how-ever, focuses solely on transactions, a deficit tackled by the

relationship marketing approach. At the core of it is the study of relationships

between buyers and sellers of goods or services, in contrast to merely examining

transactions. An often cited and comprehensive definition of relationship

marketing is provided “Relationship marketing refers to all marketing activities

directed toward establishing, developing, and maintaining successful relational

exchanges.” Therefore, the relationship marketing approach pro-vides a suitable

environment in which customer loyalty research can be nested.

While the development of relationship marketing began in the early 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,

conservation, and extension of buyer-seller relationships. Although relationship

marketing today is widely accepted among marketing researchers, its promoters

do not postulate the replacement of the transactional approach, but rather

juxtapose the two approaches. For example, delineates a strategy continuum, in

which different goods require different degrees of transaction- and relationship-

based marketing strategies. As a result of the focus on relationships in marketing

research, customer loyalty gained importance within research.

Before determining which stream the present study can be associated with,

however, it is important to create a clear understanding of different customer

loyalty concepts prevalent in research. This will be accomplished in the following

section.

Customer Loyalty Concepts

Reviewing research, it becomes obvious that the notion of customer loyalty

is blurred. At its core, customer loyalty deals with relationships between suppliers

and their customers and can be distinguished from other loyalty aspects, such as

brand loyalty, which refer to a more abstract attachment, such as that towards a

brand. Within German customer loyalty literature, the notion of customer loyalty

is even more faceted, encompasses both ‘customer loyalty’ and ‘customer

retention’ distinguishes an active, supplier-focused component and a passive,

customer focused component of customer loyalty.

In the supplier-focused perspective, customer loyalty is seen as a bundle of

measures that aim at improving relationships with customers. The supplier is in

the center of attention and the customer is only regarded as the factor at which

success of customer loyalty becomes manifest. Here it becomes clear that this

approach contains a conceptual deficit. It is the customer who eventually decides

on whether customer loyalty management is successful or not, because all

activities undertaken by a supplier can only be geared at influencing customers

to be loyal. A customer-focused perspective therefore has to be added to evaluate

the success of customer loyalty management.

Within the customer-focused perspective, customer loyalty is conceptualized

taking into account customers’ complex characteristics. These can either be

approached as customers’ directly observable actions and/or take into account

their attitudes and intentions. Since customers’ actions are directly influenced by

their attitudes and intentions, it is obvious that these have to be scrutinized to

understand and manage loyalty. A third perspective is a synthesis of the former

two approaches. The relationship-focused perspective directly examines the

relationship between suppliers and customers. Accordingly, the objects of study

in this perspective usually are buying behavior in retail contexts and long-term

relationships marked by frequent interaction between suppliers and buyers in

industrial contexts.

Behaviorist customer loyalty concepts

Behaviorist concepts of customer loyalty have been at the core of early

marketing research and focus on customers’ observable behavior, as e.g. in

purchasing behavior. Accordingly, customer loyalty is established, when

customers demonstrate consistency in their choice of supplier or brand. “Hard-

core” loyalty, when one product alternative is exclusively repurchased and of

“reinforcing” loyalty, when customers switch among brands but repeat-purchase

one or more alternatives to a significant extent. Similarly, customer loyalty as

“the proportion of times a purchaser chooses the same product or service in a

specific category compared to the total number of purchases made by the

purchaser in that category“. Pegging customer loyalty to purchasing behavior,

however, is very critical; there can be a multitude of factors affecting purchasing

behavior, such as product availability or special deals, which are not grasped by

looking at purchases alone. A main deficit of the behaviorist approach thus is that

it does not look at the drivers’ behind purchasing behavior. Another disadvantage

of behaviorist customer loyalty concepts is their ex-post approach. When loyalty

is only expressed through purchases, information on customers’ actual loyalty

status in between purchases is not available. Consequently, decreasing loyalty is

only recognized after it manifests itself through changed purchasing behavior.

Only in relationships with frequent interaction can a supplier integrate further

aspects, such as complaints, into customer loyalty management. The reason, why

behaviorist concepts may still be valuable, is because the measurement of

customer loyalty in this approach does not necessitate involvement by the

customer. The assessment of attitudes and intentions would always imply

customers’ cooperation through participation in surveys. By simply recording

purchases, e.g. through delivery records in the industrial context or customer

cards in a consumer context; the assessment of customer loyalty poses little

difficulty. Particularly in areas, where most purchases can be easily ascribed to

individual customers, as is the case with mail-ordering or book-stores on the

internet, the behaviorist approach is useful for identifying different customer

groups and their characteristics. Such firms, however, can only assess purchases

of their own products, while purchases of competing products go unnoticed.

Firms can therefore neither draw conclusions about relative changes of

purchasing behaviors, nor evaluate their comparative market position.

Neo-behaviorist customer loyalty concepts

These narrow technical definitions do not adequately capture the richness

and depth of the loyalty construct implicit in a relational framework.”

Consequently, neo-behaviorist customer loyalty concepts start at the

shortcomings of the behaviorist approach by examining the causes of loyalty. As

early as 1969, Day concluded that “loyalty should be evaluated with both

attitudinal and behavioral criteria” otherwise accidental repeat-purchases, merely

resulting from situational exigencies, would be regarded as indicators of loyalty.

There is no agreement, however, on the question, whether attitudes are part of

customer loyalty or merely an antecedent of it. Some authors propose that only

positive attitude can lead to ‘true’ customer loyalty. If attitude then is a necessary

prerequisite of customer loyalty, some drivers of loyalty cannot be explained.

Transaction cost theory, for instance, provides the concept of asset specificity.

Relationship-specific investments create economic switching barriers and

therefore increase customer loyalty. However, the mere repeat purchase of goods

or services for reasons of economic constraints would not qualify as loyalty, as

positive attitudes are not involved. In order to avoid the outlined problem, it is
useful to abstain from defining positive attitude to be a necessary antecedent of

loyalty. Instead, researchers usually consider intentions and observable behavior

to be the constituting elements of customer loyalty.

Determinants of Customer Loyalty

In order to be able to gear marketing activities towards the creation of customer

loyalty, its determinants and their precise effects have to be known. Accordingly,

many researchers have investigated this topic. In order to gain an overview of the

determinants identified in these works, they can be structured in three

dimensions:

(1) Company-related determinants refer to the supplier itself or to the goods

or services offered. It is a prerequisite for the existence of customer loyalty

that the offered goods or services create utility for the customer and that they

are available. In this respect, an assessment is usually performed by examining

quality. In order to evaluate the price-performance ratio, customers will

pay attention to prices. Customer loyalty will also be influenced by the

reputation a company has and ultimately by customer loyalty programs offered.

(2) Relationship-related determinants play a significant role in long-term

relationships. Factors regarding the interaction between supplier and

customer, such as relationship quality, previous experiences, and trust are

important. Commitment, which provides evidence of emotional closeness

and moral or normative feelings of obligation, takes a central role in

relationships. Specificity and dependence can lead to economic, psychological

and social switching barriers.

(3) Customer-related determinants are mainly influenced by customers’

characteristics. In this respect, affect and involvement, and consequently

also the importance of the good or service to the customer, are important.

Addition to the above delineated areas, the effects of the market environment and

competition are researched, as is the link between satisfaction and loyalty,

which plays an important role in the research of customer loyalty and is

often placed in one of the three dimensions. However, as most other determinants

influence satisfaction, it cannot be clearly separated and should therefore

be listed as a distinct category.

OBJECTIVES OF CUSTOMER SATISFACTION PROGRAMME

Our Programs are research based, built on the three corner stone’s of customer

satisfaction: product quality, process and procedural quality, and relationship

quality. Our typical program assesses specific issues under each component, for

example:

Product Quality

• meets or exceeds expectations

• state-of-the-art technology

• validated, tested, & simulated to client specifications

 • competitive pricing

• enhance customer value

Procedural Quality

• ease of ordering

• accurate fulfillment

• inventory meets needs

• on time delivery

• environmentally friendly packing

• packaged to prevent damage in shipment

• ease of tracking

• appropriate adjustment/return policy

• order-through-delivery process bests competition

Relationship Quality

• product knowledgeable contacts

• knowledgeable about client needs

• communicates at client knowledge level

• one-stop problem resolution

• problems solved at the root cause

• legendary customer service benchmarks competition

The tailored Programs provide direct, statistically valid, comparison data of you

to your competition on the following actionable areas:

• Responsiveness

• Competitiveness

• Innovativeness

• Quality

• Customer Service

• Long Term Partnering

It accurately quantifies your competitive strengths and weaknesses from your

customers' perspective. Using the data, it will help you focus strategic efforts to

retain and increase market share. The programs also provide direct measure of

the effectiveness of initiatives your organization has implemented during prior

year (after first year's participation). That is, you will have quantifiable internal

benchmarks (in addition to the external competitive benchmarks) on the repeat

annual surveys to judge progress based on actions you have taken during the

previous 12 months.

TABLE SHOWING KEY FACTORS FOR CUSTOMER

SATISFACTION

QUALITY FACTORS
 COMPANY FUNCTION
Product

Sales Knowledge

Brochure detail
Marketing Mailing frequently

Order Delivery time

Distribution Order Completeness

Problem Response Time

After Sales Time to Resolve

Accuracy
Accounts Problem Response

Courtesy

CUSTOMER CARE AND SALES PROCESSES

Service organizations are particularly dependent on levels of customer care, as

the ‘people’ element in the marketing mix reflects. Customer care can play an

equally important role, however, in manufacturing, production and other

organizations providing goods and services. For customer care programs to be

successful they need to span the entire organization. Popular guarantees 100%

customer satisfaction and has, over the years, developed a more conscientious

approach to individual customers. There is Customer care training provided.

Though this may initially be a very lengthy process as the ball starts rolling

through all sectors of the organization and costs will grow too, as further

investment is required to update and maintain the initiative in the future. To

provide an effective customer care services, every employee is highly motivated.

There are frequent internal newsletters circulated which strengthens the bond

throughout the organization. Frequent performance appraisal throughout the

organization is conducted to evaluate the employees and provide career

developmental opportunities to potential employees. The customer care program

at Popular mainly have six main stages, as follows:

1. Objectives setting: For every month, target sales will be fixed by the Sales

Manager at the showroom.

2. Current situation analysis: Present industrial trend is observed closely and

various promotional offers are introduced to boost sales if there is a chance

for a slump in sales. Also, a customer service audit is conducted both

internally and externally. Monthly sales targets fixed by the Sales Manager.
3. Strategy development: Develop a strategy for raising levels of both

customer service and sales from the current to the desired standard based

upon any change in trends and the economic conditions prevailing. Each

region is divided into 4 zones. Each zonal level will be under the charge of

a supervisor under whom there are four sales executives. It is the duty of

these sales executives to generate on field enquiries and to follow up the

customers based on the appointment fixed.

4. Functional planning: Define training needs and other requirements such

problem-solving sessions or teambuilding exercise to execute the strategy.

Daily, a meeting of all the staffs at their respective branch is convened. Here

they discuss their daily programs and targets to meet plus they also discuss

about their previous day’s work among the team. They consider the response

of all the individual customers met.

5. Implementation: Implement training and other initiatives through

workshops, seminars. The prospective customers are segregated and the

issues raised by certain customers will also be addressed. Some customers

may not be satisfied with the present offers and price. In such cases efforts

will be put up to make maximum adjustments and convert it to sales.

6. Monitoring: Results are tested through customer and employee surveys and

evaluation of the training methods is also conducted. The program is

improved and updated on a continuous basis.

HANDLING CUSTOMER COMPLAINTS
A complaint is any measure of dissatisfaction with your product or service,

even if it’s unfair, untrue, or painful to hear! Complaints may be about:

• Service Content, Delivery or Quality • Response Time

• Documentation • Personnel

• Billing • Communication

• Follow Up • Requests

This is a customer complaint resolution process that anyone can implement:

 Focus on the Customer

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

communications loop with customer. If you’ve referred the complaint to others,

make sure there’s closure. If you’ve left the customer hanging without a response,

you’ve become part of the problem.

 Focus on the Complaint

Collect all complaints from all external customers and categorize them in a way

that allows you to analyze data to see trends, patterns, concentrations, tendencies,

etc.

 Focus on Process Improvement

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
of the database, make appropriate investments to prevent issues that result in

customer complaints. If you can think of complaints as useful data for making

process improvements in your organization, you will go a long way towards

making changes that will differentiate you and make your work life easier, more

fun, and more responsive to customer needs.

SIX STEPS TO DEALING WITH DIS-SATISFIED CUSTOMERS

1. Listen carefully to what the customer has to say, and let them finish-Don't

get defensive. The customer is not attacking you personally; he or she has a

problem and is upset. Repeat back what you are hearing to show that you have

listened.

2. Ask questions in a caring and concerned manner-The more information you

can get from the customer, the better you will understand his or her perspective.

I’ve learned it’s easier to ask questions than to jump to conclusions.

3. Put yourself in their shoes-As a business owner, your goal is to solve the

problem, not argue. The customer needs to feel like you’re on his or her side and

that you empathize with the situation.

4. Apologize without blaming-When a customer senses that you are sincerely

sorry, it usually diffuses the situation. Don't blame another person or department.

Just say, "I'm sorry about that.”

5. Ask the customer, "What would be an acceptable solution to you?"-

Whether or not the customer knows what a good solution would be, I’ve found

it’s best to propose one or more solutions to alleviate his or her pain. Become a

partner with the customer in solving the problem.

6. Solve the problem, or find someone who can solve it— quickly!-Research

indicates that customers prefer the person they are speaking with to instantly

solve their problem. When complaints are moved up the chain of command, they

become more expensive to handle and only add to the customer's frustration.

INDUSTRY PROFILE

AUTOMOBILE INDUSTRY TILL DATE

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 wheeler

segment was largely dominated by Automobile Products of India (API) and

Enfield in the 50s. Later on towards the end of the 50s Bajaj Autos began

importing Vespa scooters from Italian company Piaggio. In the following decades

the automobile industry in India was mainly dominated by scooters 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 Honda and

TVS Suzuki are companies formed in this era of market reform. The market was

still predominantly scooter dominated and Bajaj and LML were the leading

brands producing the products at that time.

The Japanese companies not only collaborated with Indian companies to produce

the already existing products but also brought in new technology as a result of

which the ever conquering 100cc bikes which were extremely fuel efficient with

4 stroke engines were launched in India. These proved to be highly successful as

they provided a cheap and affordable means of personal transport to all those who

could not buy a car. The flourishing middle class took a great liking for these

bikes and the bike sales in India began to grow exponentially year on year leading

to Hero Honda becoming the leader in the 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 government went on an

overdrive to support the industry and all FDI regulations and licensing was

abolished. 100% FDI was allowed in the automobile industry and the excise duty

was also considerably reduced to its current level of 12% on two wheelers. All

these factors combined with the rising fuel prices, the increasing dispensable

incomes of households, easy access to finance, etc. have led to two wheeler

industry becoming the backbone of the automobile industry in India. The two

wheeler industry in India forms a major chunk of the automobiles produced in

India. According to Society of Indian Automobile Manufacturers statistics for the

year 2009 – 2010, two – wheelers comprise 76.49% of market share among the

vehicles produced in India. The production share of two wheelers is quite similar

to the market share. The two wheeler industry comprises around 74% of the total

automobiles produced in India. The SIAM data for the year 2009-10 states that

8,418,626 two wheelers were produced during the year against a total of

11,175,479vehicles produced during the year.

India emerged as Asia's fourth largest exporter of automobiles, behind Japan,

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 overall volume

growth on account of the spurt in the sales of motorcycles. 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 industrial activity

respectively. Major automobile manufacturers in India include Maruti Udyog

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 with

being the second largest populated country, makes the automobile industry in

India a very promising one.

INDIAN TWO WHEELER MARKET

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

competing in an ever growing consumer market by bringing out new products

and features. The country has now grown into the second largest producer of two

wheelers in the world. Currently there are around 10 two-wheeler 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 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 concept of electronic/self-start and

automatic gears which made two wheelers comfortable and useable by women,

when compared to old Bajaj Chetak advertisements which showed middle aged

females riding a Bajaj Chetak 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 due

to the lack of reputation of the manufacturers and lack of trust on technology,

which is still being perceived in the nascent stages, especially battery and

inverters which prove to be very expensive components. TVS recently leveraged

this opportunity by launching a hybrid model of their non 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 on motorcycles, especially

stating change in customer’s preference as the main 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.

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 been

making significant contribution to the employment, directly and indirectly, 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.

In December 2006, Government had formulated a ten-year Automotive

Mission Plan with an aim to achieve domestic vehicle market of $82-119bn by

2016 and $12bn export of vehicles. It also aimed at making India 7th largest

vehicle producing country in the world by 2016. And, we have already achieved

this milestone in 2010, which is good six years ahead of the target.

 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 two wheelers

segment. However, exports to Sri Lanka, which used to be the largest

importer of two wheelers from India in 2006-07, have fallen by almost 20%

since 2006-07 to reach a level of $ 63mn of exports in 2009-10.

 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
 in 2008-09, a growth of 21% approximate. In fact, Nigeria has emerged as

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

2006-07 which has grown by 15 times to reach an export level of $ 103mn

in 2009-10. Amongst the top 5 export destinations in this segment, Colombia

experienced the highest increase in growth of imports from India in 2009-

10. Exports of two wheelers to Colombia increased by 45% in 2009-10 over

2008-09.

FUTURE PROJECTIONS

 The Indian automobile industry is expected to grow to US$ 40bn by 2015

from the current level of US$ 10bn in 2009. By the year 2016 the industry is

expected to contribute 10% of the nation’s GDP. The industry manufacturers

over 11mn vehicles a year employing more than three million people.

 The greatest challenge and competition would be from the Chinese

automobile industry. It has been able to give stiff competition to India in

terms of productivity, cost of manufacturing and technology. Again the

present trend of excess manufacturing capability, reduced margins put

additional pressure on the industry.

 On the positive side, India’s strength in software sector, combined with

skilled labor and low cost of manufacturing should place it in a favorable

position globally.
 Two wheeler industry gains more profit Considering the scenario of traffic

and roads in India, and the rate at which infrastructure is growing in

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 problem

of parking. Two wheelers can be parked anywhere on the road, 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 anything significant is

going to happen.

 It gives the optimistic view about the industry and the overall industry shows

positive growths which recommend the investors to keep a good watch on

the major’s players to benefit in terms of returns on their investments.

RECENT TRENDS IN TWO WHEELER SECTOR

 The international trends suggest that the growth of the two-wheeler

markets will continue unabated for some time. In value terms, the BRIC

motorcycles market grew by 14.7% between 2006 and 2010 to reach a

value of $32.4 billion (Brazil alone growing by 32% pa). By 2013, the

market is forecast to have a value of $54.7 billion.

 The global motorcycle demand has been growing at 6-7% pa and is

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 to lead to

further innovations and efficiency gains.

 Of course, the Indian market is significantly different with the segment

below 150 cc being the dominant segment. This is unlike the developed

world, where it is the larger bikes that dominate the market volumes. Indian

consumption is also likely to shift significantly toward international trends,

but in the foreseeable future, it is the smaller bikes that will remain the

mainstay.

 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-

250 cc). Only 1% of the bikes are in the premium segment.

 The premium segment is expected to continue to be a niche segment and

its share is not expected to grow beyond 2-2.5% over the next decade.

However, that itself implies that it will be a market of about 200,000 to

250,000 annual units, which is substantial and attractive. (As a comparison,

the declining Japanese market currently consumes only about 350,000

motorcycles annually in the above-250 cc category, having fallen sharply

over the past few years).

CHAPTER 2
RESEARCH DESIGN
INTRODUCTION

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

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

been sold in India from 1949. In 1955, the Indian government looked for a

suitable motorcycle for its police and army, for use patrolling the country's

border. As far as the motorcycle brand goes, though, it would appear that Royal

Enfield is the only motorcycle brand to span three centuries, and still going, with

continuous production. Product range has widened and the customer has evolved.

TITLE OF THE STUDY

“A Study on Customer Satisfaction towards ROYAL ENFIELD

BIKES, Bangalore”
STATEMENT OF THE PROBLEM

Customer satisfaction plays a crucial role in enabling an organization to

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

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

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

study is conducted with special reference to customer satisfaction. A company

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

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

a competitive price further advertising to increase.

OBJECTIVES OF THE STUDY

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

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

(Service, bike performance, mileage etc).

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

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

for common man.

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

Enfield.

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

service.

SCOPE OF THE STUDY

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

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

75 numbers and therefore the opinion of only selected customers is taken into
consideration. Mainly this study is conducted in Bangalore and the scope is

limited.

OPERATIONAL DEFINITIONS

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

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

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

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

services supplied by a company meet or surpass customer expectation.

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

percentage of total customers, whose reported experience with a firm, its

products, or its services (ratings) exceeds specified satisfaction goals."

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

information for a survey or questionnaire or responding to an

advertisement.

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

timeframe and with available resources.

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

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

RESEARCH METHODOLOGY

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

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

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

user looks for while buying a bike.

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

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

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

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

Bullet community.

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

of questionnaire keeping in mind the time and cost constraints.

TOOLS OF DATA COLLECTION

The information relevant for study was drawn from Primary data collected

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

was collected to study successfully.

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

of Royal Enfield Primary Data was collected by personally visiting the

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

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

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

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

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

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

which helped me to prepare the research Report.

 Secondary data- The Secondary Data collection involved internet

search, browsing magazines, newspapers and articles and papers related to

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

the topic were also browsed to understand the dynamics of the industry.
SAMPLE DESIGN

The research was carried out in various phases that constituted an

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

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

the user looks for while buying a bike. In order to get a perspective from non-

Bullet riders as to what are the reasons for not choosing a Bullet, I administered

the same questionnaire to riders who used other motorcycles keeping in mind the

time and cost constraints. For the customer satisfaction study a sample of 75

persons was chosen from the in Bangalore city. The sample was judgmental and

methodology was convenient random sampling.

Size of Sample 75

Sampling technique Convenient Random Sampling

method

Location from which samples were Bangalore city

taken
PLAN OF ANALYSIS

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

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

analysis and inferences are drawn which in turn was used for interpretation.

Based on, these charts were prepared to better pictorial understanding of

the study.

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

which is followed by suggestions, keeping the objectives in mind

throughout the study.

LIMITATIONS OF THE STUDY

 This research is geographically restricted to Bangalore city only. Hence

the result cannot be extrapolated to other places.

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

industry.

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

cost constraints.

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

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

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

as authentically as possible.

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

for the respondents to be biased or pretentious.

 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.
OVERVIEW OF CHAPTER SCHEME

Chapter-1 Introduction- It’s all about the Introduction part. It mainly consists

of introduction to Marketing with its types, approaches, research and market

segmentation. Then comes introduction about Customer Satisfaction with its

steps, customer loyalty and concepts, handling customer complaints, how to deal

with dissatisfied customers and objectives of customer satisfaction program.

Later about automobile industry till date, Indian two wheeler market and its recent

trends.

Chapter-2 Research Design- It consists of the title of the study, statement of

problem, objectives and scope of the study, operational definitions, research

methodology, data collection, sample design, plan of analysis and finally the

limitations of the study.

Chapter-3 Company Profile- This chapter contains the historical background of

the company Royal Enfield, company’s vision and objective, Royal Enfield

products, organizational chart and SWOT analysis of Indian two wheeler markets

and Royal Enfield.

Chapter-4 Data Analysis and Interpretation- This chapter consists of the

analysis and interpretation from the data collected through questionnaires, tables

and graphs representing it.

Chapter-5 Findings and Conclusion - This chapter contains the findings drawn

from the study and final conclusion about the whole project. Also few suggestions

are posted.

Chapter-6 Suggestions- This chapter contains some suggestions to the company.

 CHAPTER 3
COMPANY PROFILE
HISTORY OF THE COMPANY
Mid 19th century England The firm of George Townsend & Co. opened its doors

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

firm was specialized in sewing needles and machine parts. In the first flush of

enterprise, flitting from one opportunity to another, they chanced upon the pedal-

cycle trade. Little did they know then that it was the beginning of the making of

a legend. Soon, George Townsend & Co. was manufacturing its own brand of

bicycles. And in 1893 its products began to sport the name ‘Enfield’ under the

entity Enfield Manufacturing Company Limited

with the trademark ‘Made Like a Gun’. The

marquee was born.

INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors (formerly Enfield of India)

FOUNDED 1893, as Enfield Manufacturing Co. Ltd.

DEFUNCT 1971

HEADQUARTERS Redditch, Worcestershire, England

KEY PEOPLE Founders Albert Eadie and Robert Walker Smith

PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

Profile of the Organization
Royal Enfield is the makers of the

famous Bullet brand in India.

Established in 1955, Royal Enfield (India) is

among the oldest bike companies. It stems from

the British manufacturer, Royal Enfield at

Redditch. Royal Enfield has its headquarters at Chennai in India. Bullet bikes are

famous for their power, stability and rugged looks. It started in India for the Indian

Army 350cc bikes were imported in kits from the UK and assembled in Chennai.

After a few years, on the insistence of Pandit Jawaharlal Nehru, the company

started producing the bikes in India and added the 500cc Bullet to its line. Within

no time, Bullet became popular in India.

Bullet became known for sheer power,

matchless stability, and rugged looks. It

looked tailor-made for Indian roads.

Motorcyclists in the country dreamt to drive

it. It was particularly a favorite of the Army and Police personnel. In 1990, Royal

Enfield ventured into collaboration with the Eicher Group, a leading automotive

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

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

and Automotive Gears. Royal Enfield made continuously incorporating new

technology and systems in its bikes. In 1996, when the Government of India
imposed stringent norms for emission, Royal Enfield was the first motorcycle

manufacturer to comply. It was among the few companies in India to obtain the

WVTA (Whole Vehicle Type Approval) for meeting the European Community

norms. Today, Royal Enfield is considered the oldest motorcycle model in the

world still in production and Bullet is the longest production run model.

2010 AWARDS

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

Auto Expo 2010. Held between January 5th and 11th at the Pragati Maidan in

New Delhi, the event saw more than 400 global brands showcasing new

technology, products and show-off concepts.

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

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

stays of the Royal Enfield display were the soon to be launched variants of the

Classic - the Royal Enfield Classic Chrome and the Royal Enfield Classic Battle

Green.

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

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

awards.
Awards 2010:

- Apollo Auto India Awards 2010: Best Brand

- Zigwheels.com Viewers Choice Bike of the Year 2009

- Zigwheels.com Bike of the Year above 251cc

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

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

EVOLUTION OF ROYAL ENFIELD

THE BEGINNING (1851 – 1890)

Hunt End, England was a village of several

small mills

manufacturing needles and fish-hooks. It was

here in 1851 that George Townsend put up his needle-making mill, which he

named Givry Works. But it wasn’t until his passing away that his son, George

Jr. and his half-brother brought into Givry Works one of the first 'boneshakers' –

a crude cycle. It had a backbone of iron, with wooden wheels, iron tires and

pedals of triangular pieces of wood! Though the bike was a source of some

amusement, George and his team felt they could easily improve on it. The

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

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

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

neighbourhood – a saddle that only used one length of wire in the two springs

and in the framework. This was adopted, patented and marketed as the

'Townsend Cyclists Saddle & Spring'. He had entered the bicycle parts trade!

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

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

Works was growing rapidly. Over the next three years he developed his own

range of over two-dozen machines. Each machine, known locally as the

'Townsend cycle' was reputed for its sturdy frame, a character that all Enfield

bikes would follow.

THE COMING INTO BEING (1891 – 1900)

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

1890 and called in some financiers from

Birmingham. Unfortunately, they didn’t quite see

eye to eye. So Townsend parted ways with the

financiers leaving the company to them. The

financiers then brought in Albert Eadie and R.W.

Smith. They took control of Townsend’s in November 1891. The following year

the firm was re-christened ‘The Eadie Manufacturing Company Limited’. Soon

after, Albert Eadie got a lucrative contract to supply precision rifle parts to the

Royal Small Arms Factory in Enfield, Middlesex.

 1892 Kick Starting Royal Enfield-A new company was

created to market these new design bicycles called

‘The Enfield Manufacturing Company Limited’. By

October 1892, the Enfield bikes were announced to the

public. The following year the word Royal (after the Royal Small Arms

Company) was added and thus Royal Enfield began. Then in 1893 the Royal

Enfield trademark ‘Made like a Gun’ appeared. Britain was caught up in a

patriotic fervor and the slogan caught the spirit of the time. In 1899 the first

mechanical vehicle was advertised by Enfield Cycle Company. It was available

in both tricycle and quadric cycle form, powered by a De Dion 1.5 hp engine. The

high wheels, solid tires, block chains and heavy cross frames had by then given

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

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

By 1907, the cycle industry was still headquartered at Redditch, producing run-

of-the-mill conventional cycles.

 1897-Quadricycles

In 1897, R. W. Smith built himself a quadric cycle

– a simple bike with four wheels and a French

engine placed under the saddle between the rear

wheels. During the next two years several

developments were made. About then, an Enfield quadric cycle completed the

1,000-miles road trial of 1900 organized by the Automobile Club of Great Britain

and Ireland. The Enfield vehicle was awarded the silver medal, although it had

its share of troubles and breakdowns.

MOTORCYCLES (1900 - 1910)

1904-Four Wheelers and Three

Buoyed by success, Smith and Eadie decided to

extend the range of quadric cycles and tricycles to

include motorcars. The first Royal Enfield cars

were built in 1901 and were on the road in 1902. It was an 8hp, using a DE Dion

engine. The body was made in Leicester and painted yellow hence car was known

as ‘The Yellow Car’. But this was just a temporary phase, a wild romance that

was soon to die.

 1909-Motorcycle Craze

It would be interesting to note here that

motorcycling was thought to be a temporary

enthusiasm that would soon fade out! A brief spin

on a motorbike then took several hours of preparations - tuning the tiny water-

cooled engine, getting the tires pumped, the gears oiled and a supply of spare

parts packed. In 1909, Royal Enfield took the biking world by surprise. At the

motorcycle show that year, they displayed a small 2 1/4 hp V twin-engine

machine built in the Swiss tradition, which ran very well. A slightly larger model

was developed in 1911. A 2 3/4 hp, with all chain drive incorporating the well-

known Enfield two-speed gear. This model stood up until 1914.

THE ROYAL ENFIELD BIKES (1911 - 1920)

1911-Enfield and the War

The First World War began in 1914. Royal

Enfield was called on to supply motorcycles to

the British War Department and even awarded a

contract to build bikes for the Imperial Russian Government during the same

period. The machine gun combination and the 6hp stretcher-carrying outfit were

some of the models produced for the war purpose. Enfield started using its own

engines - a 225cc two-stroke single and a 425cc V-twin about this time. Post-war,

it produced a larger 976cc twin and continued to produce the two-speed 225L
until 1929. In 1917, the officers of the Women’s Police Force were issued with a

2 1/4RE 2 stroke. Interestingly, the models of this period featured 600cc, inlet-

over-exhaust, closed valve gear, hand-operated oil pump, two-speed countershaft

gearbox and chain final drive. In the 1913-1914 Enfield V-Twin the lubricating

oil was contained in a glass tank attached to the frame tube that ran from the seat

to the rear of the engine. This worked perfectly and had the added advantage of

providing an instant visual check of oil levels. The 1915 make 675cc in-line 3-

cylinder 2-stroke prototype was the worlds’ first with this configuration and

engine type.

THE INTERWAR YEARS (1921 - 1930)

1924 The First Four-stroke-The interwar year was a

period when the sidecar reached its zenith. In July

1925, the Royal Enfield V-Twin-engine

Dairyman’s Outfit took part in the ACU Six

Days’ Trial for Commercial Sidecars and

obtained a Special Certificate of Merit for completing an arduous course without

loss of marks. The year 1924 saw the launch of the first Enfield four-stroke 350cc

single using a JAP engine.

 1928-The Depression

In 1928, Royal Enfield adopted saddle tanks and

center-spring girder front forks – one of the first

companies to do so. The bikes now with a modern

appearance and comprehensive range meant

continuous sales even during the dark days of depression in Great Britain towards

the end of 1930. In 1927 Royal Enfield produced a 488cc with a four-speed

gearbox, a new 225cc side-valve bike in 1928, and a four-stroke single in 1931.

Several machines were produced in the next decade, from a tiny two-stroke 146cc

Cycar to an 1140cc V-twin in 1937. Can you even imagine that Royal Enfield’s

range for 1930 consisted of 13 models!

ESTABLISHING BULLET (1931 - 1940)

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

cylinder was introduced, and christened 'Bullet' in

1932. It had an inclined engine and an exposed

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

of the now famous Bullet name. Longer stroke, four-valve head exposed valves

and heavily finned crank case were the features that ran from 1932 until the end

of 1934.
 1940 The Second World War-The most well known

offering for the Second World War was no doubt

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

this lightweight 125cc bike was capable of being

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

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

cage aided in packing turning handlebars easily.

POST WAR BULLETS (1941 - 1950)

1948 Bigger and Better-The 1939 Bullet 350 kick-

started the post-war models. They used two rocker

boxes for the first time. This enabled better gas

flow and consequently higher volumetric

efficiency. Royal Enfield’s own designed and manufactured telescopic front fork

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

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

suspension system and hydraulic damper units themselves. In 1947 Enfield made

a J2 - the first model with a telescopic front end, followed in 1948 by a 500cc

twin (Enfield's 25bhp answer to the Triumph Speed Twin), which stayed in

production until 1958.

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

was launched in India, when Madras Motors won

an order from the Indian Army for the supply of

motorcycles. It was the beginning of the reign of the Bullet in the subcontinent.

The Madras Motor Company started off by receiving the Bullet in kits and simply

assembling them. Then they began making the frames. After this Enfield started

sending the engine in parts to be assembled in India. Eventually they were also

manufacturing the engines, which meant that they were making the complete

bike. For the next thirty years, the design of their bike remained unchanged! In

1950, several models were introduced: the 650cc Meteor twin; a 250cc Clipper;

a short stroke 250cc Crusader; 250cc Trials; Super 5; Continental; 500 Sports

Twin; Super Meteor; Constellation and the Interceptor.

A TALE OF TWO CITIES (1951 - 1960)

1951-In the UK…Never before in British

automobile history had so much been done in a

single decade, not just by Royal Enfield, but the

every other marquee of the time. All new engines,

all new configurations, new paint schemes, new capacity classes… the

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

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

maneuverable machines, and upwards for larger capacity, high powered and
reliable motorcycles. The Royal Enfield showrooms in the UK saw everything

from 125cc two strokes to the mighty700ccMeteor.

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

reason why the Bullet was brought to India in the first

place, insisted that they would continue doing business

with Madras Motors only if the Bullet was produced indigenously. The Enfield

India Bullet of the late fifties was quite a different motorcycle from the one we

are used to today. Using the famed Lucas Magdyno ignition system, the 1955

Bullet was almost a clone of the 52 Redditch Bullet. The frame, electric tin ware

and rolling chassis, however, were to undergo many changes over the next ten

years, with the Bullet slowly evolving into the familiar form we know and love

today.

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

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

arrangement with Indian (Of America) had ended,

so Enfield was no longer sold under the Indian

marquee (Royal Enfield rival, British AMC

company, acquired the Indian Sales Corp. in

1959). However, in 1961, Eddie Mulder won the Big Bear Enduro on an Enfield,

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

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

700cc twin and six street scramblers, ranging from the 250cc Hornet to the 500cc

Fury (essentially the single-cylinder Bullet) to the 700cc Interceptor. Elliot Shulz

also dominated the half-mile dirt track in Los Angeles on an Enfield that year.

Enfield won 31 out of 39 races in 1961 and had several spectacular victories in

1964.Royal Enfield had arrived on The Continent! But things at Redditch had hit

a bad patch.

1963-But back home in Madras…By 1970, Enfield

India was a company established in its own right,

and with a production line going full steam, the

need for collaboration with Enfield of the UK and Villiers of the UK was no

longer seen. But the Bullet flew true and strong. A number of changes had already

been made to the tin ware on the Bullet. Mudgaurd design took on different forms,

taking into account the wet, slushy and messy road conditions during the Indian

monsoon. The Magdyno also gave way to the alternator ‘Delco’ ignition system.

And front and rear hubs were designed to provide more efficient cooling for

Indian conditions, and thus improve braking performance.

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

 1973 The Mini Bullet-With the success of the

Sherpa, Enfield India launched the 173cc

Villiers-powered Crusader in India in 1973. A

totally indigenous effort, this small motorcycle

used many Bullet chassis parts, including fork

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

Bullet, but were diffident about handling it’s weight and size. The Mini Bullet

too was introduced this year. This motorcycle was a 200cc two stroke sporting

‘contemporary’ design. Enfield India attempted to reach out to the young market,

providing them with a zippy, reliable and economical two-stroke.

TOUGH TIMES AHEAD (1981 - 1990)

1983 Here comes the Lightweights-Like the adage

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

the tough get going". Enfield India got squarely

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

through and Explorer motorcycle are launched. Powered by the Zundapp-

engineered 50cc, 6.5hp two stroke motors, these bikes redefined the entry-level

segment. The Silver Plus, initially a two-speed and then later a three speed, found

a ready market not only among the young office going male, but among an

increasing number of women who found the step-through design convenient. The

Explorer, with its contemporary bikini fairing and 'fastback' tailpiece. Both bikes
sported alloy wheels, a first in India. Close on the heels of the little wonders came

the Fury 175. Powered by a 175 Zundapp two-stroke engine with a five-speed

gearbox, this refreshingly quick motorcycle came fitted with a hydraulic disc

brake. Again a first in the country. And a bike, many feel, much too early in

INDIA.

1984 Brand New Vintages-The 80s also saw the

Bullet in many different avatars. The Deluxe

models appeared, in resplendent chrome and

metallic colors, and 12 volt electrical were offered

as an option, to aid in brighter lighting and easier starting. It was also the year

when Enfield India grew confident enough about their flagship product to begin

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

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

looking to come back to motorcycling.

ENFIELD BECOMES ROYAL ENFIELD (1991 - 2000)

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

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

1993 Bullet 500-The Bullet 500 was launched in

June this year. It went on to become the most

coveted model.

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

when Eicher group acquired Enfield India Company. The company name

changed to Royal Enfield Motors Limited.

ROYAL ENFIELD (2001 - 2010)

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

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

rides a distance of more than 200 meters.

2002- India’s first Cruiser – The

‘THUNDERBIRD’- is launched.BBC Wheels

awards it ‘The Best Cruiser 2002’ title. The Bullet Machismo enters commercial

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

Championship (60’s Class) on a Bullet.

2003

The first ‘RIDER MANIA’ gets together is held in

Goa.

REDS are formed in Pune.

The Bullet enters the Automotive ‘Hall of Pride’ at the ICICI Overdrive awards.

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

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

2004-The 2004 Bullet Electra is launched.

The retro styled Bullet Machismo is rated

‘No.1Cruiser’ in TNS Auto car survey.The Bullet

Electra International with a lean-burn engine is launched in the UK.34 men ride

simultaneously on a Bullet, setting a new world record.

2005

Royal Enfield India Celebrates 50 glorious

years of motorcycling and unveils a

blueprint for the future. The 2005 Bullet

Electra features a revolutionary 5-Speed left side gear shift that makes the

marquee more accessible to motorcyclists. The Legend rides on…

2006

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

delivers a dramatic increase in performance and efficiency. The new engine will

power all domestic and International models from 2007 onwards.

 2007

Royal Enfield launches the all new limited edition

Machismo 500LB with customized accessories.

The legendary Bullet 350 needs no introduction. Now Bullet

350 is with all new UCE engine. This classic machine has

kept place with advances in engineering and ergonomics

without diluting its impeccable pedigree.

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

making it ideal for long distance travel.Its aristocratic black & gold livery and

thumping engine beat remind passers-by that they are in the presence of

automotive royalty.

2008

The Thunderbird Twins Park will be the first

model to feature Royal Enfield’s revolutionary

Unit Construction Engine. All the well loved

features of the Thunderbird have been retained and enhanced in some cases. Also,

the twin benefit of improved performance and engine efficiency makes this

motorcycle hard to beat in terms of pure riding pleasure and visual delight. The
evolutionary mix of old and new features in this motorcycle will surely delight

its owners.

2009

The smaller twin of the Classic 500, the Classic 350 will hold its own against any

other motorcycle and then pull some more. The Classic 350 shares its power plant

with the Legendary Thunderbird. The torque to flatten mountains and the fuel

efficiency to cross entire ranges comes in the same understated yet charming

styling. This is a motorcycle that does not need to shout to be heard. Born of a

rich heritage and bred with Royal Elegance this 350cc thumper has all the

qualities of a typical Royal Enfield. Appreciated then, appreciated now...

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

The Classic 500 comes to India. Armed with a potent fuel injected 500cc engine

and clothed in a disarmingly appealing post war styling, this promises to be the

most coveted Royal Enfield in history. For those who want it all. The power, the

fuel efficiency, the reliability and simple, yet drop dead gorgeous classic styling.

The classic turns heads not because it wants to but because it can’t help it. You

will appreciate the beat not just for the music it creates but also for the muted

feeling of strength and power that it signifies. The view is simply better when you

are astride a Royal Enfield Classic 500 – whether moving or still. Nothing more

to be said.

Army's stunt riders break record-

ARMY PERSONNEL IN BANGALORE SET RECORD OF

CARRYING 48 PERSONS ON ONE BIKE Indian Army

personnel broke a world record by being the only team in

the world to cross a staggering distance of 1000 meters

carrying 48 persons on a single moving 500 cc Royal Enfield motorcycle.

'Tornadoes', the motorcycle display team of Army Service Corps today broke two

world records by being the only team to achieve a staggering distance of 1100

meters with 54 persons on a single bike. They broke the record of Corps of

Military Police who carried 48 persons on a single moving 500 CC motorcycle

here recently. The team while exhibiting extraordinary skill, courage, endurance

and mental strength, entered the annals of record books by performing this

breathtaking feat on a 500 CC Royal Enfield motorcycle at the Runway of Air

Force Station Yelahanka in the presence of a large number of military and civil

dignitaries. The 'Tornadoes' was raised in 1982 after having given a stupendous

display of daredevilry in the 1982 Asian Games. "Since then the men of the

Tornadoes Team by their sheer grit, determination and spirit of adventure have

created a niche for themselves by rewriting various records," the release said. The

team at one point of time had achieved the distinction of holding seven world and

national records of varying degrees of complexity and fortitude, it said.

ORGANISATIONAL STRUCTURE

GENERAL MANAGER
(Proprietor)

Sales Manager Service Manager Service Manager

Showroom Service Accountant

In charge Supervisor
charge
 Team Service Assistant

Manager Staffs Accountant

Sales

Representative

SWOT ANALYSIS
MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET

GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES

A Bajaj, Hero Honda Highly diversified - High buyer power

Aggressive - High competitive

promotion
rivalry

- High entry barriers

B TVS Selectively - Low entry barriers

diversified
- Narrow product lines
Aggressive imply that aggressive
Promotion promotions can eat into
market share

C Honda, Yamaha Selectively -High threat of

diversified
substitution (Rs 1 lakh car)
Moderate Promotion
- Low entry barriers

D Royal Enfield Highly specialized - Low buyer power, high

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

SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY

STRENGTHS WEAKNESSES

 Established brands  Extremely price sensitive

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

OPPURTUNITIES THREATS

 Growing premium segment  The Rs.1 Lakh car

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

SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA

STRENGTHS WEAKNESSSES

 Size and scale of parent company  Small showrooms

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

OPPURTUNITIES THREATS

 Growing premium segment  Cut throat competition

 Global expansion into the  Increasing number of players in the
Caribbean & Central America market
 Expansion of target market (include  Rising raw material costs
women)  Increasing rates of interest on
 Increasing dispensable income finance
 1st mover advantage
 CHAPTER 4
DATA ANALYSIS
AND
INTERPRETATION

TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE

AGE NO. OF PERCENTAGE

RESPONDENTS
20-24 30 40%
25-29 19 26%

30-34 14 18%
Above 35 12 16%

TOTAL 75 100%

Analysis

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

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

above 35 years.

Interpretation

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

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

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

GRAPH No.1
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE

16%

40%
18%

20-24

26% 25-29
30-34
Above 35

TABLE No.2
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER

GENDER NO. OF PERCENTAGE

RESPONDENTS
MALE 69 92%

FEMALE 6 8%

TOTAL 75 100%

Analysis

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

respondents constituted just 8% of total responses.

Interpretation

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

manly look of the bikes.

GRAPH No.2
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER

8%

Male
Female
92%

TABLE No.3
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

pursuing their graduation or post graduation studies and 28% were professionals.

18% of the respondents were self employed, 4% were ex-serviceman and 6%

belonged to government services.

Interpretation

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

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

GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS

45%

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

No. of Respondents

Student Govt service Ex-servicemen Proffesional Self-employed

No. of Respondents 44% 6% 4% 28% 18%

TABLE No.4
TABLE SHOWING-THE ANNUAL INCOME GROUP OF
RESPONDENTS
INCOME GROUP NO. OF PERCENTAGE
RESPONDENTS
LESS THAN 1,20,000 39 52%

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

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

ABOVE 7,20,000 12 16%

TOTAL 75 100%

Analysis

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

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

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

3,60,000.

Interpretation

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

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

easily afford this Bike.

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
TABLE No.5
TABLE SHOWING-THE MODEL OF THE ROYAL ENFIELD THE
RESPONDENTS PRESENTLY OWN
MODEL NO. OF PERCENTAGE
RESPONDENTS
BULLET 500 11 14%

THUNDER BIRD 7 10%

BULLET ELECTRA 15 20%
MACHISMO 500 6 8%

BULLET 350 16 21%

CLASSIC 500/350 17 23%

OTHERS 3 4%

TOTAL 75 100%

Analysis

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

Interpretation

It clearly shows that customers are not attracted to only one particular model due
to the variants available and because the Classic 500/350 are the newly released
models they are fast moving now.
GRAPH No.5
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD THE
RESPONDENTS PRESENTLY OWN

18

16

14

12

10

6
Bullet 500
4
Thunder Bird
2 Bullet Electra
Machismo 500
0
Bullet 350
No. of
Respondents Classic 500/350
Others
TABLE No.6
TABLE SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS

PURCHASED BY NO. OF PERCENTAGE

RESPONDENTS
CASH 54 72%

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 deserves that

price which Royal Enfield is offering.

Interpretation

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

they are not feeling much problem with the amount.

GRAPH No.6
GRAPH SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS

60

50

40

30

20

10

0
CASH LOAN
No.of Respondents 54 21
TABLE No.7
TABLE SHOWING- THE NO OF RESPONDENTS CONSIDERING
OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD
BIKE

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 27 36%

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 other

motorcycle while purchasing their Royal Enfield bike.

Interpretation

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

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

of the customers towards the brand Royal Enfield.

GRAPH No.7
GRAPH SHOWING- THE NO OF RESPONDENTS CONSIDERING
OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD
BIKE

64%

70%
36%
60%

50%

40%

30%

20%

10%

0%

YES

NO

No. of Respondents
 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.
GRAPH No.8
GRAPH SHOWING- THE SOURCE OF AWARENESS FOR
CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD BIKE

35%

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

friends and
newspaper magazines roadshow tv adds website showroom
relations
Respondents 8% 32% 14% 10% 6% 20% 10%
TABLE No.9
TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD AFTER
PURCHASE OF BIKE

MILEAGE NO. OF PERCENTAGE

RESPONDENTS
45km/lit & Above 5 6%

40-45 16 22%

35-40 26 34%

30-35 18 24%

Below 30 10 14%

TOTAL 75 100%

Analysis

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

45km/lit which is really good, 24% of them between 30-35km/lit, 14% below

30km/lit and 6% above 45km/lit.

Interpretation

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

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

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
No. of Respondents 5 16 26 18 10

TABLE No.10
TABLE SHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE

FREQUENCY OF NO. OF PERCENTAGE

BREAKDOWN RESPONDENTS
VERY OFTEN 8 10%

RARELY 19 26%

NOT AT ALL 48 64%

TOTAL 75 100%

Analysis

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

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

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

Interpretation

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

not problematic and not involved into repair always.

GRAPH No.10
GRAPH SHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE

10%

26%

64%

Very often
Rarely
Not at all

TABLE No.11
TABLE SHOWING- THE PLACE OF PURCHASE OF ROYAL
ENFIELD BIKES & THEIR SATISFACTION LEVEL TOWARDS IT
PLACE OF NO. OF PERCENTAGE
PURCHASE RESPONDENTS
SHOWROOM 48 64%
DIRECT SECOND 22 30%
HAND
USED VEHICLES 5 6%
DEALERSHIP
TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE

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

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

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

GRAPH No.11
GRAPH SHOWING- THE PLACE OF PURCHASE OF ROYAL
ENFIELD BIKES AND THEIR SATISFACTION RESPONSE
TOWARDS IT

48 No. pf Respondents
50
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%

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

the availability of spare parts.

Interpretation

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

availability and we can say that Royal Enfield has good distribution channel for

spare parts in the city.

GRAPH No.12

GRAPH SHOWING- THE AVAILABILITY OF SPARE PARTS IN

THE MARKET

6%

16%

10%

68%

Readily Available
Don't get them readily
Don't have good spares supply
Major headache
TABLE No.13
TABLE SHOWING- THE MAJOR 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%

LOW MILEAGE 8 10%

NOISY VEHICLE 3 4%

NO PROBLEM 31 42%

TOTAL 75 100%

Analysis

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

Interpretation
It is clear that majority of the people who choose Royal Enfield as their bike
don’t have any problems or issues with their bike’s performance.
GRAPH No.13
GRAPH SHOWING-THE MAJOR PROBLEMS AFTER
PURCHASING ROYAL ENFIELD BIKE

14%

10%
42%

20%
High maintainance

Poor after sales

service
High Price

4% Low mileage
10%
Noisy vehicle
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.
GRAPH No.14

GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR

THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND
PICK UP

45

40

35

30
Excellent
25

20 Good

15
Average
10
5
Poor
0

No. of Respondents

No. of Respondents
Poor 4
Average 8
Good 20
Excellent 43
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.
GRAPH No.15
GRAPH SHOWING-THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO COMFORT
AND SAFETY

9%

16%

43%

Poor

Average

32% Good

Exellent
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.
GRAPH No.16
GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO AFTER
SALES SERVICE

30 27

24

25

20

13
15 11

10

0
Poor Average Good Excellent

No. of Respondents
TABLE No.17
TABLE SHOWING- THE RESPONDENTS OPINION OF THE
MAJOR BARRIER FOR NOT PURCHASING ROYAL ENFIELD
BIKES BY NON-BULLET RIDERS
PROBLEMS NO. OF PERCENTAGE
RESPONDENTS
HIGH 11 14%
MAINTENANCE
POOR AFTER SALES 7 10%
SERVICE
HIGH PRICE 15 20%
LOW MILEAGE 8 10%
NOISY VEHICLE 3 4%
POOR PROMOTION 31 42%
TOTAL 75 100%

Analysis

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

Interpretation

It is clear that People who choose not to buy Bullets do so because of low
promotion, high price and maintenance. So Royal Enfield should concentrate on
their promotional campaigns and make sure it reaches the common man.
GRAPH No.17

GRAPH SHOWING- THE RESPONDENTS OPINION OF THE

MAJOR BARRIER FOR NOT PURCHASING ROYAL ENFIELD
BIKES BY NON-BULLET RIDERS

14%

42%

10%

High maintainence
20%
Poor after sales service

High price
4%
Low mileage
10%

Noisy vehicle

Poor Promotion
TABLE No.18
TABLE SHOWING - THE PLACE OF SERVICE OF RESPONDENTS
BIKE
PLACE OF NO. OF PERCENTAGE
SERVICE RESPONDENTS
SHOWROOM 34 45%

WELL KNOWN 29 38%

BULLET
MECHANIC
NEARBY GARAGE 4 6%

SELF SERVICE 8 11%

TOTAL 75 100%

Analysis

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

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

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

Interpretation

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

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

shows people have less trust with the showroom service.

GRAPH No.18
GRAPH SHOWING- THE PLACE OF SERVICE OF RESPONDENTS
BIKE

Showroom Well known bullet mechanic Nearby garage Self service

11%

6%

45%

38%

TABLE No.19
TABLE SHOWING- THE RESPONDENTS OPINION AND LEVEL
OF SATISFACTION ABOUT THE COMPANY TAKING ACTION
TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 55 73%
NO 20 27%
TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE

SATISFACTION RESPONDENTS
YES 49 66%
NO 26 34%
TOTAL 75 100%

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

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

GRAPH No.19
GRAPH SHOWING- THE RESPONDENTS OPINION AND LEVEL
OF SATISFACTION ABOUT THE COMPANY TAKING ACTION
TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS

55

60

40
20

20

Yes

No

No. of Respondents

Point of satisfaction

No
34%

Yes
66%

TABLE No.20
TABLE SHOWING- THE RESPONDENTS OPINION ABOUT
PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE
ROYAL ENFIELD CLUB

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 62 82%
NO 13 18%

TOTAL 75 100%

Analysis

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

Rider Mania and 18% of them are not interested.

Interpretation

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

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

GRAPH NO.20
GRAPH SHOWING- RESPONDENTS OPINION ABOUT
PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE
ROYAL ENFIELD CLUB

18%

82%

Yes
No
 CHAPTER 5
FINDINGS AND CONCLUSION

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

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

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

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

of the manly look of the bikes.

3. Users are mostly Professional males, 20-35 years of age including some

students because of the looks and power of the bike.

4. Royal Enfield is placing their products in the appropriate price range. As

the people of this income bracket less than 1,20,000 can easily afford this

Bike.

5. Customers are not attracted to only one particular model due to the variants

available and because the Classic 500/350 is the newly released models they

are fast moving now.

6. Customers are easily affording the price of Royal Enfield bikes and they are

not feeling much problem with the amount and purchasing way of most of

the customers is leading in cash sector.

7. Majority of the customers directly chose Royal Enfield as their bike and

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

loyalty of the customers towards the brand Royal Enfield.

8. Advertisements are rarely recalled and are highly ineffective amongst non-

Bullet riders. It’s clear that Royal Enfield should concentrate on its

advertising campaign to reach the customers.

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

mileage between 35 and 40 that too on Indian roads with heavy traffic is a

great deal.

10. Most of the Royal Enfield bikes doesn’t breakdown at all, it is not

problematic and not involved into repair always.

11. It is clear that most of the respondents prefer to buy their bike brand new

from showroom only and majority of the customers are very much satisfied

with the place of purchase of their Royal Enfield bike. This also shows there

is more demand for new bikes.

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

availability and we can say that Royal Enfield has good distribution channel

for spare parts in the city.

13. It is clear that majority of the people who choose Royal Enfield as their

bike doesn’t have any problems or issues with their bike’s performance.

14. Majority of the respondents are satisfied with their bikes power and pick

up. This shows Royal Enfield has an excellent satisfaction level within the

customer

15. Majority of the respondents are satisfied with their bikes comfort and

safety. This shows Royal Enfield has an excellent satisfaction level within

the customers.
 16. Majority of the respondents are satisfied with their after sales service and

few respondents are not at all satisfied. This shows Royal Enfield has a good

satisfaction level within the customers.

17. It is clear that People who choose not to buy Bullets do so because of low

promotion, high price and maintenance. So Royal Enfield should

concentrate on their promotional campaigns and make sure it reaches the

common man.

18. It is clear that most of the respondents service their bikes in the showrooms

and also with a well known bullet mechanic. There is no much difference

but this shows people have less trust with the showroom service.

19.Most of the respondents agree that the company takes action towards the

complaints lodged by the customers and also the satisfaction level of the

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

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

20.Majority of the respondents are very much interested in Rider Mania and

also shows that respondents are very passionate Enfield fans.

CONCLUSION

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

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

Royal Enfield should concentrate on its advertising campaign to reach

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

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

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

customers on regular basis to maintain its brand value and entire Royal Enfield
owner are passionate Royal Enfield fans.
 CHAPTER 6
SUGGESTIONS

SUGGESTIONS
 Aggressive selling- The Company should follow an aggressive selling

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

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

provide information in a subtle manner.

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

print media are absolutely out of touch with the Indian culture and

thought process. An Indian consumer irrespective of their income level

has a soft corner for traditions and culture of India. Hence, all companies

including market leaders like Hero Honda and Bajaj capitalize on this

behavior of customers and design their ad campaigns keeping India in

mind.

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

Royal Enfield was quite weak in following up with prospective

customers.

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

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

the market.

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

that Royal Enfield is not satisfying all their customers in after sales

services, employees at dealership sometimes use harsh words and become

rude to the customers, parts of the bike are not easily available in the
 market. This is the major drawback in capturing the market share so

Royal Enfield should take some better steps to satisfy and retain their

customers.

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

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

increase customer query response by dealers.

 Youth oriented promotion- Company should focus more on younger

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

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

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

amount. But the company should also take some steps towards making

purchase easier through bank loans and EMI’s.

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

Respect, Power, Safety and Comfort.

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

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

a brand ambassador from India to connect with the Indian customer.

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

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

to other manufacturers.
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, Bangalore.’ I request
you to kindly spare some of your time and fill the questionnaire below. Thank
you.

RESPONDENT INFORMATION

Name:

1. Age:

2. Gender : Male Female

3. Occupation:

Student Government service

Professional Self employed other

4. Annual Income:

Less than 1, 20,000 1, 20,001-3, 60,000

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

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

Bullet 500 Thunder Bird

Bullet Electra Machismo 500 Bullet 350

Classic 500/350 others

6. How did u purchase the bike?

Cash Loan
7. Did u consider other motorcycle while buying the Royal Enfield bike?

Yes No

- If yes which bike did you compare with?

Bike cc

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

your bike?

Newspapers Magazines Friends

Road shows TV Adds Website/blogs

Showroom Others

9. Please specify your bike’s mileage?

45km/lit & above 40-45

35-40 30-35 Below 30

- Are you satisfied with the bikes mileage?

Yes No

10. Frequency of breakdown of your bike?

Very often rarely Not at all

11. Which place did you prefer to purchase your Royal Enfield bike?

Showroom Direct second hand

Used vehicles dealership

Are you satisfied purchasing there? YES NO

12. How about the availability of spare parts?

Readily available don’t get them readily

Don’t have good spares supply Major headache

13. Any major problems after purchasing Royal Enfield bike?

No problem

High maintenance Poor after sales service

High price Low mileage Noisy vehicle

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

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

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

Trendy Macho

High Cost Low mileage

Expensive spare parts

Others- If any

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

High Maintenance Poor after sales service

High price Low mileage

Poor promotion Noisy vehicle

19. Where do you service your Royal Enfield bike?

Showroom Well known bullet mechanic

Nearby garage self service

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

YES NO

Are you satisfied with their replies?

YES NO

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

1-2 3-4 More than 5

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

YES NO

23.Any suggestions
BIBLIOGRAPHY
 BIBLIOGRAPHY

Books Referred

 Marketing Management, 13th edition - Philip Kotler

 Survey Research Methods - Charles Babbie

Magazines Referred

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

Enthusiasts.

 Royal Enfield Magazine, The BEAT.

Websites Referred

 www.google.com

 www.royalenfield.com

 www.wikipedia.org

 www.enfieldmotorcycles.com