Summer Training Project

on
CONSUMER PREFERENCES TOWARDS PURCHASE OF ROYAL
ENFIELD

Submitted in partial fullment of the award of the degree of

Master of Business Adminsitration

To

Integral University, Lucknow

Under the guidance of Submitted by
Dr. Syed Shahid Mazhar Abdul Rahman Siddiqui
Professors BBA V Semester

Roll No. 2001029005

Session- 2021-22
Department of Business Management
Faculty of Management and Research
Integral University Lucknow

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 Department of Business Management

Faculty of management And Research

Integral University

Lucknow

CERTIFICATE OF ORIGINALITY

To whom it may concern

I Abdul Rahman Siddiqui, Enrollment no- 2001029005, from BBA Vth Sem of the
department of Business Management, Integral University Lucknow, hereby declare
that the summer training report entitled CONSUMER PREFERENCES TOWARDS
PURCHASE OF ROYAL ENFIELD is an original work and the same has not been
submitted to any other institution for the award of any other degree. A presentation of the
Summer Training Report and the suggestions as approved by the faculty guide were duly
incorporated.

Date Signature

2
 DECLARATION

I hereby declare that I had a wonderful experience in doing this summer

internship training on “CONSUMER PREFERENCES TOWARDS
PURCHASE OF ROYAL ENFIELD ” submitted in partial fulfillment of the
requirements for the prestigious degree of under graduation.
I hereby declare that the project done by me is true to my knowledge. The
project duration was 60 days (15/07/2022 to 10/09/2022). The information
collected by me is authentic and is done through data analysis and interpretation.
The content of this report is based on information collected from different
sources and research reports. I further declare that this project report has not
been submitted to any other university or institution for the award of any degree
or diploma.

ABDUL RAHMAN SIDDIQUI

BBA Vth- Semester
Roll No-2001029005

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 ACKNOWLEDGEMENT

Co-operation and building up of moral are the essence of success. These are two
factors that go a long way in achieving it. It is a Herculean task, which lacks
these two determinants of success. Summer training was an exposure to
corporate environment. It was an opportunity and great pleasure for me to be in
such an environment and having interaction with concerned people.
I express my deep sense of gratitude to our Respected Dr. Syed Shahid
Mazhar HOD Intergral University, Lucknow for providing me this
opportunity to undergo summer training as per their summer internship
program.
I express my heartily respect and profound thanks seniors for their enlightening
and meticulous guidance for the consummation and evaluating of this project.
Finally, to my parents, for all the care and support with which they overwhelmed
me through long months of compiling the report.
I sincerely hope that my first venue in this field is appreciated. Offering thanks.

ABDUL RAHMAN SIDDIQUI

BBA Vth- Semester
Roll No-2001029005

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 EXECUTIVE SUMMARY

This project is the result of my research on “CONSUMER PREFERENCES TOWARDS

PURCHASE OF ROYAL ENFIELD”

Project work is an integral part of the BBA course. This practical experience helps the student

to the real business world closely, which in turn widely influences his/her concepts and

perfection.

The Marketing play an important role in accomplishing the objectives of the organization. If

the market research is not properly done, the organization will not be able to accomplish

desired results. Therefore organization try to meet the needs of their consumers as fully as

possible to contribute their maximum for the achievement of the business objective

The project assigned was CONSUMER PREFERENCES TOWARDS

PURCHASE OF ROYAL ENFIELD. I personally met all the respondents for getting all the

information.

SL. NO. CONTENTS PAGE NO

1. CHAPTER 1- INTRODUCTION 1-34

This chapter contains introduction to Marketing, Meaning,

Definition, Importance and other relevant aspects of
Customer Prefrences , the theoretical background to
Automobile Industry till date and Indian two wheeler

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 markets.

2. CHAPTER 2- COMPANY PROFILE 35-57

This chapter contains the historical background of the

company, company vision, objectives, and SWOT analysis.

3. CHAPTER 3- RESEARCH DESIGN 58-64

 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

4. CHAPTER 4- DATA ANALYSIS AND INTERPRETATION 65-105

Analysis and interpretation from the data collected through

questionnaires, Tables and graphs representing it.

5. CHAPTER 5- SUMMARY OF FINDINGS AND CONCLUSIONS 106-110

This chapter contains the findings drawn from the study.

6. CHAPTER 6- SUGGESTIONS 111-113

7. BIBLIOGRAPHY 114

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 CHAPTER 1

INTRODUCTION

INTRODUCTION TO MARKETING

Marketing is the process of performing market research, sellingproducts 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 Prefrences s. 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.

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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

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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

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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

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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.

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  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.

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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 ofproduction, may be made.

CUSTOMER PREFRENCES

Customer Prefrences , abusinessterm, is a measure of how products and services supplied by a

company meet or surpass customer expectation. Customer Prefrences is defined as "the number

of customers, or percentage of total customers, whose reported experience with a firm, its
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products, or its services (ratings) exceeds specified Prefrences 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 Prefrences is seen

as a key differentiator and increasingly has become a key element of business strategy. Within

organizations, customer Prefrences 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 Prefrences , firms generally ask customers

whether their product or service has met or exceeded expectations. Thus, expectations are a key

factorbehind Prefrences . 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 Prefrences rating than a budget motel—even

though its facilities and service would be deemed superior in “absolute” terms.

CUSTOMER PREFRENCES 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'

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queries within the space of a few hours, but at least email or call them back and let them know

you've received their message and you'llcontact them about it as soon as possible. Even if you're

not able to solve a problem right away, let the customer know you're working on it.

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

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 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 andsub-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.

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 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

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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.

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 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-

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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.

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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:

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 (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 Prefrences and loyalty, whichplays 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 Prefrences , it cannot be clearly separated and should

therefore be listed as a distinct category.

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OBJECTIVES OF CUSTOMER PREFRENCES PROGRAMME

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

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

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          •       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.

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 TABLE SHOWING KEY FACTORS FOR CUSTOMER PREFRENCES

COMPANY FUNCTION QUALITY FACTORS

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 Preferences and has, over the years, developed 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

25
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

26
 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 Preferences 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.

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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.

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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 ofcommand, 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
29
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 wasstill 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 cheapand 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

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automobiles produced in India. According to Society of Indian Automobile Manufacturers

statistics for the year2009 – 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.

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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

bybringing 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

32
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 7thlargest 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.

33
  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
34
 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

35
 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).

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 CHAPTER 2

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.

37
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

38
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)

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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. Sowas George Townsend Jr. By luck,

he chanced upon an invention in his neighbourhood – a saddle that only used one length of wire

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

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

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

40
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

41
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.

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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

43
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

rangemeant 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 crankcase werethe features that ran

from 1932 until the end of 1934.

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 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
45
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 tinware 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.

46
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

tinware on the Bullet. Mudgaurd design took on different

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

The Magdyno also gave way to the alternator ‘Delco’ ignition system. And front and rear hubs

47
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 thefray 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

48
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.

49
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.

50
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

51
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 powerplant with the Legendary

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

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

be heard. Born of a rich heritage and bred with Royal Elegance this 350cc thumper has all the
52
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 BIKEIndian 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
53
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)

54
 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

55
GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES

A Bajaj, Hero Honda Highly diversified - High buyer power

Aggressive promotion - High competitive

rivalry

- High entry barriers

B TVS Selectively diversified - Low entry barriers

Aggressive Promotion - Narrow product lines imply

that aggressive promotions can
eat into market share

C Honda, Yamaha Selectively diversified -High threat of

Moderate Promotion substitution (Rs 1 lakh car)

- Low entry barriers

D Royal Enfield Highly specialized - Low buyer power, high brand

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

SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY

56
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. segment  Rising raw material costs
dominated by limited players.  Increasing rates of interest on finance

SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA

57
STRENGTHS WEAKNESSSES

 Size and scale of parent company  Small showrooms

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

OPPURTUNITIES THREATS

 Growing premium segment  Cut throat competition

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

CHAPTER 3

RESEARCH DESIGN

INTRODUCTION

58
 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 Prefrences towards ROYAL ENFIELD BIKES, Bangalore”

STATEMENT OF THE PROBLEM

Customer Prefrences 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 Prefrences . 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.

59
 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 Prefrences 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 Preferences - A business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. Customer Prefrences 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 Prefrences

goals."
60
 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

61
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 Prefrences 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

62
time and cost constraints. For the customer Prefrences study a sample of 75 persons was chosen

from the in Lucknow city. The sample was judgmental and methodology was convenient random

sampling.

Size of Sample 75

Sampling technique Convenient Random Sampling method

Location from which samples were taken Lucknow city

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.

63
 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.

64
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%

65
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

66
TABLE No.2

TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER

GENDER NO. OF PERCENTAGE

67
 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

GRAPHSHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER

68
TABLE No.3

TABLE SHOWING-THE OCCUPATION OF RESPONDENTS

OCCUPATION NO.OF PERCENTAGE

69
 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

70
TABLE No.4

TABLE SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS

71
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 1,20,000can easily afford this Bike.

72
GRAPH No.4

GRAPH SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS

73
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

74
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS
PRESENTLY OWN

TABLE No.6

TABLE SHOWING- THE PURCHASING WAY OF THE CUSTOMERS

75
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

76
TABLE No.7

TABLE SHOWING- THE NO OF RESPONDENTS CONSIDERING OTHER

MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD BIKE

77
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

78
79
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.

80
GRAPH No.8

GRAPH SHOWING- THESOURCE OF AWARENESS FOR CUSTOMERS WHILE

BUYING THEIR ROYAL ENFIELD BIKE

81
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
82
GRAPH SHOWING-THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASE OF
BIKE

TABLE No.10

83
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

84
GRAPHSHOWING- THE BREAKDOWN OF BIKES SINCE PURCHASE OF VEHICLE

TABLE No.11

85
TABLE SHOWING- THE PLACE OF PURCHASE OF ROYAL ENFIELD BIKES &
THEIR PREFRENCES LEVEL TOWARDS IT

PLACE OF NO. OF PERCENTAGE

PURCHASE RESPONDENTS

SHOWROOM 48 64%

DIRECT SECOND HAND 22 30%

USED VEHICLES 5 6%
DEALERSHIP

TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE

PREFRENCES
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

86
GRAPH SHOWING- THE PLACE OF PURCHASE OF ROYAL ENFIELD BIKES AND
THEIR PREFRENCES RESPONSE TOWARDS IT

TABLE No.12

87
 TABLE SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE MARKET

AVAILABILITY NO.OF PERCENTAGE

RESPONDENTS

READILY AVAILABLE 51 68%

DON’T GET THEM 8 10%

READILY

DON’T HAVE GOOD 12 16%

SPARES SUPPLY

MAJOR HEADACHE 4 6%

TOTAL 75 100%

Analysis

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

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

Interpretation

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

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

GRAPH No.12

88
GRAPH SHOWING-THE AVAILABILITY OF SPARE PARTS IN THE MARKET

TABLE No.13

TABLE SHOWING- THEMAJOR PROBLEMS AFTER PURCHASING ROYAL ENFIELD BIKE

89
PROBLEMS NO. OF PERCENTAGE

RESPONDENTS

HIGH MAINTENANCE 11 14%

POOR AFTER SALES 7 10%

SERVICE

HIGH PRICE 15 20%

LOW MILEAGE 8 10%

NOISY VEHICLE 3 4%

NO PROBLEM 31 42%

TOTAL 75 100%

Analysis

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

Interpretation

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

GRAPH No.13

GRAPH SHOWING-THEMAJOR PROBLEMS AFTER PURCHASING ROYAL

ENFIELD BIKE

90
TABLE NO.14

TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR

PREFRENCES LEVEL WITH RESPECT TO POWER AND PICK UP

91
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 Prefrences level within the customer.

GRAPH No.14

GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR

PREFRENCES LEVEL WITH RESPECT TO POWER AND PICK UP

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TABLE No.15

TABLE SHOWING-THE RATING BY THE RESPONDENTS FOR THEIR

PREFRENCES LEVEL WITH RESPECT TO COMFORT AND SAFETY

RATING NO. OF PERCENTAGE

93
 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 Prefrences level within the customers.

GRAPH No.15

GRAPH SHOWING-THE RATING BY THE RESPONDENTS FOR THEIR

PREFRENCES LEVEL WITH RESPECT TO COMFORT AND SAFETY

94
TABLE No.16

TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR

PREFRENCES LEVEL WITH RESPECT TO AFTER SALES SERVICE

RATING NO. OF PERCENTAGE

95
 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 Prefrences level within
the customers.

GRAPH No.16

GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR

PREFRENCES LEVEL WITH RESPECT TO AFTER SALES SERVICE

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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

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HIGH MAINTENANCE 11 14%

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

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TABLE No.18

TABLE SHOWING - THE PLACE OF SERVICE OF RESPONDENTS BIKE

PLACE OF SERVICE NO. OF PERCENTAGE

RESPONDENTS

99
SHOWROOM 34 45%

WELL KNOWN BULLET 29 38%

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

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TABLE No.19

TABLE SHOWING- THE RESPONDENTS OPINION AND LEVEL OF PREFRENCES

ABOUT THE COMPANY TAKING ACTION TOWARDS COMPLAINTS LODGED BY
THE CUSTOMERS

101
YES/NO NO. OF RESPONDENTS PERCENTAGE

YES 55 73%

NO 20 27%

TOTAL 75 100%

RESPONSE FOR NO. OF RESPONDENTS PERCENTAGE

PREFRENCES

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 Prefrences
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 Prefrences 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 PREFRENCES

ABOUT THE COMPANY TAKING ACTION TOWARDS COMPLAINTS LODGED BY
THE CUSTOMERS

102
Point of Prefrences

TABLE No.20

TABLE SHOWING- THE RESPONDENTS OPINION ABOUT PARTICIPATING IN

THE RIDER MANIA ORGANIZED BY THE ROYAL ENFIELD CLUB

103
YES/NO NO. OF RESPONDENTS PERCENTAGE

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

104
CHAPTER 5

FINDINGS AND CONCLUSION

105
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.

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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 Prefrences level within the customer

15. Majority of the respondents are satisfied with their bikes comfort and safety. This shows

Royal Enfield has an excellent Prefrences 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 Prefrences level within the

customers.

107
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 Prefrences 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.

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CONCLUSION

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

109
CHAPTER 6

SUGGESTIONS

110
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.

111
 Increase in customer query response- During the studyit 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.

112
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

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