CHAPTER-1

INTRODUCTION

1.1 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.

1|Page
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.

2|Page
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

3|Page
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.

4|Page
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

5|Page
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,

6|Page
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

7|Page
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

8|Page
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.

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

9|Page
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.

10 | P a g e
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.

11 | P a g e
 1.2 OBJECTIVE OF STUDY

1. For developing skills in report writing through various techniques like data
representing, presentation, data analysis.

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

3. To gain the knowledge about a real time business .

4. To understanding the policies, rules, techniques of a real time business.

5. How to apply the theoretical concept in real life situations .

6. To study the growth of Royal Enfield over the period of time.

7. To study about Royal Enfield’s market share.

8. To study about company’s competitor and their policy .

9. To compare the Royal Enfield’s performance with its competitors .

10. To know about Royal Enfield’s strategy to tackle its competitors strategies.

12 | P a g e
1.3 SCOPE OF STUDY

1. To analyse the sales the royal enfield across India. From data collected from

secondary sources

2. To compare Royal Enfield with other famous two wheeler brands

1.4 COMPANY PROFILE

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.

13 | P a g e
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.
14 | P a g e
ORGANISATIONAL STRUCTURE

GENERAL MANAGER
(Proprietor)
SWOT ANALYSIS

Sales Manager Service Manager Service Manager

Showroom Service Accountant

In charge Supervisor
charge

Team Service Assistant

Manager Staffs Accountant

Sales
Representative

MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET

15 | P a g e
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

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

17 | P a g e
SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA

STRENGTHS WEAKNESSSES

 Size and scale of parent company  Small showrooms

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

OPPURTUNITIES THREATS

 Growing premium segment  Cut throat competition

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

18 | P a g e
Profile of the Products

Royal Enfield Bullet 350

One can be a part of classical prominence by having a ride

on Royal Enfield Bullet 350, a macho bike which is stylish as

well. The brawny is laden with plenty of attention grabbing

features like traditional designing, astonishing power of 18

bhp from air cooled, 4 stroke engine, large wheels, and

better sitting for superior riding. This has been the classical offering from Royal Enfield and the

engineering and the design has remained unchanged over the years. It has remained the flagship

product with the other products being perceived more as derivatives of this motorcycle rather

than standalone products.

19 | P a g e
Royal Enfield Bullet 500 (Cast Iron)

Royal Enfield Bullet 500 is a classic bike having vintage

styling. The bike has hand-painted pin stripes, a 4-speed

transmission, double leading shoe front brake and was touted as the powerhouse model with a

whopping 27 bhp output. While the bike looked mostly similar to the Standard 350cc offering, its

bigger engine made it a more potent vehicle to have on long rides.Royal Enfield Bullet Electra 4S

Royal Enfield motorcycles were renowned for having

problems starting because of their CB Point Ignition

systems. In an attempt to break this negative image, the

company came up with Electra. Electra was in effect a

Standard 350cc but had a CDI Ignition system.

This paved the way for the newer bikes from Royal Enfield which now have Digital TCI as a a part

of the standard package.

20 | P a g e
Royal Enfield Lightning 535

Looking for an image makeover back in 2001, Enfield

came up with Lightning. It was a Limited Edition 535cc

motorcycle. The single-cylinder, air-cooled 535cc engine

was the largest SCAC engine for any motorcycle in the

world. The bike received limited acceptance amongst users and was discontinued after 2006 but

it succeeded in rebuilding the power-bike image of Royal Enfield amongst the enthusiasts.

Royal Enfield Bullet Electra 5S

With Electra 4S receiving quite a lot of acceptance,

Royal Enfield decided to add a few more features to

align themselves with the more contemporary

manufacturers. From a right-hand side 4-speed gear

shift, they moved to a left-hand side 5-speed gear shift. Disc brakes also made an entry, with the

280mm disc being the largest in the country. This has been one of the most successful models

from Royal Enfield and was to a large extent responsible for the revival of the brand during the

turn of the millennium.

Royal Enfield Bullet Machismo

21 | P a g e
Machismo is Royal Enfield’s “chrome

monster”. Resplendent with chrome, they are

available in both 350cc and 500cc variants.

They were the first bikes to have the now

legendary Lean Burn AVL Engines. These were

the result of Royal Enfield’s collaboration with an Austrian Engine manufacturer, AVL.

Royal Enfield Thunderbird Bike

Royal Enfield Thunderbird is a powerful bike

which for the first time broke off from the

‘Bullet’ look. They were modeled similar to the

cruisers available worldwide and were

positioned as a tourer’s choice. It has

developed into a strong marquee itself and continues to remain a brand name despite

engineering changes that went into it. It started as a 350cc AVL Single-Spark Engine. Today the

Thunderbird Twin spark is a 350cc Unit Construction Twin-spark Engine with about 20 bhp

output.

Royal Enfield Classic

22 | P a g e
In 2008, Royal Enfield unveiled its latest offerings – the Classic 350 and the Classic 500.Styled in

the vintage 50’s look, they came with 18 inch

tires, Unit Construction engines and the look

and feel of a vintage. Priced at 1.3 lakhs and

1.7 lakhs respectively, the 350cc and the 500cc

variants are slowly gaining popularity

amongst users for the lower ride height, the greater power and above all, the vintage feel of the

bike.

1.5 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

23 | P a g e
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

24 | P a g e
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

25 | P a g e
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

26 | P a g e
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

27 | P a g e
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.

28 | P a g e
 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.

29 | P a g e
 CHAPTER 2
REVIEW OF LITERATURE

LITERATURE REVIEW

(Preusser et al., 1995) Motorcycles, which are a small subset of all motor vehicle, are

greatly overrepresented in fatal motor vehicle accidents. In the United States, the death rate

per registered motorcycle (59 per 100,000) is approximately three times the death rate per

registered passenger car (17 per 100,000). Death rate calculated per vehicle, however, do

not take into account the substantially lower mileage travelled by motorcyclists. Per mile

travelled, the death rate for motorcycles is estimated to be 22 times higher than the

comparable death rate for passenger cars.

In an earlier study, Wulf et al. (1989) estimated the death rate for motorcycle riders of

about 35 per 100 million miles of travel compared with an overall vehicle death rate of

2.57 per 100 million miles. In Great Britain in 2002, the “Killed or Seriously Injured” (KSI)

casualty rate was 147 per 100 million vehicle kilometer for two wheeled motor vehicle,

whilst for car users the rate was 5 per 100 million vehicle kilometers (DfT, 2003a). Besides

the higher death rate, motorcyclists are more likely to be injured when involved in an

accident.

30 | P a g e
Horswill and Helman (2001a) looked at 399 injury accidents in the UK (1999 data) in

which either a motorcycle or car was involved in a head on collision with a car (that is,

both types of vehicle collided with the same type of object in the same way). Around 97%

of motorcyclists were injured or killed in these collisions compared with 50.5% of car

drivers (in accidents where the car driver or motorcyclists was not injured, the injured

parties were either passengers or the occupants of the other vehicle). To take into account

the possibility that motorcycle/car collisions may occur at higher speeds than car/car

collisions, they assessed a sample of 109 motorcycle/car head on collisions (that is, the

impact speed was the same for the car and the motorcycle) from the same dataset, and

found that the motorcyclists involved were 95.4% likely to be injured while the car drivers

were 0.9% likely to be injured. The much higher injury rate confirmed that motorcyclists

are more physically vulnerable than car drivers. Overall, the casualty rate (all injury types)

is 556 per 100 million vehicle kilometer for two wheeled motor vehicle, compared to 50

for car users in Britain 2002. The number of active motorcyclists could be estimated in

principle from DVLA information on the number of motorcyclist licences. The age and sex

of the rider is also given.

However, Broughton (1987) found that this significantly overestimated the number of

active motorcyclists since large proportions of those with licences do not ride regularly. A

better measure of the number of active motorcyclists therefore is the number of

31 | P a g e
motorcycles licensed, as discussed in the previous section. One significant drawback of

this measure is that no demographic information of the motorcyclists (age, sex, area, etc.)

is available. Another problem of this measure is that some owners fail to license their

vehicle to avoid paying Vehicle Excise Duty and some owners may own more than one

bike. An alternative source of information is the National Travel Survey, which collects

data on the travel habits of around 3,200 households (around 8,000 individuals) per year.

Individuals complete a seven-day (consecutive days) travel diary recording details of travel

such as the purpose of the journey, the method, the distance traveled and the time of day

as well as personal information. This information is invaluable in linking the motorcyclist

demographics, motorcycle information (such as engine size) with motorcycle use. Its major

drawback is the small sample of the respondents who ride motorcycles (in line with the

small number of active motorcyclists). To get the necessary level of details, several years

of data has to be aggregated and thus mask changes over time (Elliott et al., 2003).

(Thomson 1980; Wulf et al., 1989; RSC, 1992) One comprehensive study of motorcyclist

and motorcycle use based on the NTS data is reported in DfT (2001). The period of 1992

to 1999 is covered in the analysis, as the sample sizes are too small for a shorter period of

time. The key results cover motorcycle travel by area, journey purpose, age and sex as well

as motorcycle size. Motorcycle crash studies provide ample evidence that motorcyclists

are not easily seen by drivers of other vehicle, particularly when traffic is heavy and the

visual field is complex. A common claim of motor-vehicle drivers involved in crashes is

32 | P a g e
that they did not see the motorcycles and their riders at all, or did not see them in time to

avoid the crash. In roughly half of the cases in which motor-vehicle drivers failed to detect

a motorcycle in time to avoid a crash, other obstacles were present, either within the

vehicle, as part of the landscape, or in passing traffic, that interfered with the driver’s line

of sight (Hurt et al., 1981; Bednar et al. 2000). The ability of other road users to see and

notice the motorcycle is termed conspicuity. Because motorcycles are less conspicuous

than passenger cars or trucks, they are more difficult to detect and their approaching speed

is more difficult to determine, and this largely contributes to the high accident rate of

motorcycles.

Hancock et al. (1990) described two factors that lead to drivers failing to detect

motorcyclists in the first place: sensory conspicuity (the physical qualities of the

approaching vehicle that distinguish it from its background) and cognitive conspicuity (the

degree to which the observer’s experience or intentions affects the salience of the

approaching vehicle). Motorcycles have poor sensory conspicuity (due to the smaller size

of the motorcycle) but they also have poor cognitive conspicuity (they are less frequent

and hence less expected than cars).

According to RSC (1992), size is one of the important factors influencing conspicuity.

The face-on silhouette area of motorcycle is 30-40% of a passenger car but this is enlarged,

on the one hand, by fairings or, on the other, by changing the angle of approach. Under
33 | P a g e
daytime ambient light conditions, even motorcycles are big enough to be seen far enough

away to allow execution of avoidance manoeuvres when they are in a driver's visual field.

However, motorcycles’ small size increases the likelihood that motorcycles will be

obscured by traffic and their detection may rely on their being seen in a gap a long distance

away.

Horswill and Helman (2001) Moreover, people identify objects on the basis of their size,

shape, colour and motion. At a distance motorcycles are similar to pedestrians or bicycles

except for their speed. Size is related to judgment of speed and distance so that the speed

difference between motorcycles and other road users may not always be enough to enable

drivers to discriminate between them at long distances. These findings are supported by

him. They found that people waiting to pull out at a junction have problems detecting when

a motorcycle will Literature Review on Motorcycle Collision reach them. People judged

an oncoming motorcycle would reach them later than an oncoming car – despite the actual

time to arrival being exactly the same. This is likely to be due to the smaller size of

motorcycles, since the increase in their size as they approach – their rate of looming - is

less easy to detect.

Brooks and Guppy (1990), The lower frequency of motorcycles on the road is another

factor that causes drivers of other vehicle to overlook motorcyclists and subsequently

34 | P a g e
violate their right-of way. Many drivers do not anticipate routine encounters with

motorcyclists in traffic (NHTSA and MSF, 2000).

Hurt et al. (1981) found that drivers involved in crashes with motorcycles were more likely

to be unfamiliar with motorcycles. they shows drivers who also ride motorcycles and those

with family members or close friends who ride are more likely to observe motorcyclists

and less likely to collide with them. This indicates that drivers can see motorcyclists, whom

they might otherwise overlook, if they mentally train themselves to do so. Some experts

adduce an "expectancy" phenomenon. They follow research on vigilance and say that road

users become conditioned to respond more to the visual cues provided by other vehicle

than those of motorcycles because of their greater size and frequency on the road.

35 | P a g e
 CHAPTER 3
REASEARCH 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 Delhi 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

36 | P a g e
 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

37 | P a g e
Sampling technique Convenient Random Sampling method

Location from which samples were taken Delhi

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.

38 | P a g e
 CHAPTER 4
Data Reduction, Presentation, 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

39 | P a g e
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

40 | P a g e
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

41 | P a g e
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER

8%

Male
Female
92%

TABLE No.3
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS

42 | P a g e
 OCCUPATION NO.OF PERCENTAGE
RESPONDENTS
STUDENT 33 44%

GOVERNMENT SERVICE 5 6%

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

43 | P a g e
 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

44 | P a g e
 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.

45 | P a g e
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

46 | P a g e
 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

47 | P a g e
 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

48 | P a g e
 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

49 | P a g e
 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

50 | P a g e
 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

51 | P a g e
 64%

70%
36%
60%

50%

40%

30%

20%

10%

0%

YES

NO

No. of Respondents

52 | P a g e
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

53 | P a g e
 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

54 | P a g e
 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

55 | P a g e
 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

56 | P a g e
 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

57 | P a g e
 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

58 | P a g e
 SHOWROOM 48 64%
DIRECT SECOND HAND 22 30%
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

59 | P a g e
 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

60 | P a g e
 AVAILABILITY NO.OF PERCENTAGE
RESPONDENTS

READILY AVAILABLE 51 68%

DON’T GET THEM 8 10%

READILY

DON’T HAVE GOOD 12 16%

SPARES SUPPLY
MAJOR HEADACHE 4 6%

TOTAL 75 100%

Analysis

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

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

Interpretation

It is clear that majority of the respondents are satisfied with spare parts availability and we can say

that Royal Enfield has good distribution channel for spare parts in the city.

GRAPH No.12

GRAPH SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE MARKET

61 | P a g e
 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 MAINTENANCE 11 14%

POOR AFTER SALES 7 10%

SERVICE

62 | P a g e
 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

63 | P a g e
 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%

64 | P a g e
 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.

65 | P a g e
 CHAPTER 5
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.

 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.

66 | P a g e
 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

67 | P a g e