royal enfield project report

PART-A

1.INDUSTRY PROFILE

THE FIRST MOTORCYCLE

We are going to begin by looking at the first bikes. They didn’t work very well

and they were not very fast but moved with being drawn by a horse or being pedalled.

When you look at a motorcycle today, have you ever thought what the old bikes

were like? Were they easy to ride? How fast did they go? Were they comfortable?

To answer all these questions, we have got to go quite a long way back say about

100 years. The world was very different in those days and there must have been a

feeling of great excitement. There was a great interest in science and engineering and

almost every week, some fantastic new invention appeared. First there were gaslights

and then electricity and new cures for many kinds of illnesses were always being

announced this was period when people started thinking about how to travel quickly

and safely.

Before cars and bikes, the quickest mode of travelling was steam trains. And if

there was a near to where you wanted to go then the next best thing was a stagecoach or

paddle streamer. No one, except the very rich, could get from their own house to where

they were going very quickly. Then in 1885, a German called Gottlieb Daimler made a

small engine, which ran on a kind of petrol. It wasn’t a very good engine but it just

worked. Daimler fitted the engine to a cycle type frame, which exactly had one wheel at

the front and two wheels at the rear.

In the following year, another German, Wilhelm Maybach rode the Daimler bike

for a few meters- something which everyone thought was very brave. At last, a way of

moving people directly from one place to another had been invented.

Not everybody thought that this was a good idea. In England there was a law,

which said that no vehicle powered by an engine could go faster than 4mph which is

about as fast a s you walk. Many of the people were afraid and urged that the bike

should be banned. But in 1896 an act was passed that bikes can travel 12mph speed-,

which is considered to be a fantastic speed.

RNS ISTITUTE OF TECHNOLOGY 1

At the same time, a French engineer called De Dion made the first real good

engine for motorcycle and soon everyone was having a try at making complete

machine. And this was the turning point where bike started getting its actual look many

ideas poured in and were given shapes also.

THE BRITISH BIKES

Today we won’t see many British bikes on the road but most of the older bikes

were make in Great Britain, which had its name and fame. Now we see very few of

British Bikes. What went wrong?

In 1900, bikes were not very good. They were hard to start, they had poor brakes

and did not have much power but everyone thought they were marvellous. For the first

time, person could have his own individual way of getting about. He had personal

transport, which he could use the moment he wanted to. Above all else, these first

motorcyclists felt the sense of freedom, which a bike gave them.

The motorcycle manufacturers felt the same excitement. New designs appeared

almost every day. Some were excellent and others silly but each factory learnt from

others and bikes got better and better in just a few years.

Then the First World War came in1914, and the whole world changed. Bikes

made in this first period, from 1885 until the end of 1914 are called veterans and the

riders who are reliving how the first motorcyclists rode are still using many today.

When the war came, the bikes went with the army. The fastest way to carry an

urgent message was to send through a good rider on a bike. Here again a bike had a

turning point and during this period bikes got opportunity to claim its stake in the

market. It was considered to be best mode of travelling from remote area to urban and

from plains to rough terrain. Where a horse rider could not think of moving, their bikes

were able to do so. Moreover, a horse rider and horse would take rest after certain

interval of travelling, the bikes did not require since it was a machine.

One such British Bike, which actually made its appearance in the scenario, was

Royal Enfield and was produced in 1931 with four valve system. The name of the bike

was given in 1932 with a suitable name of bullet


which exactly had a good resemblance of the today’s bike. In other words t he

modern bikes have come into shape shown by Royal Enfield.

In 1948, the first 350-bullet roadster was introduced. Although it was a new

motorcycle with many design innovations. It was the first British produced, which had a

rear swing arm. It also had an oil filter and alloy primary chain case.

THE PROFILE OF TWO WHEELER INDUSTRY IN INDIA

Introduction

The feeling of freedom and being one with the Nature comes only from riding a

two wheeler. Indians prefer the two wheelers because of their small manageable size,

low maintenance, and pricing and easy loan repayments. Indian streets are full of people

of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of

status by the populace. Thus, in India, we would see swanky four wheels jostling with

our ever reliable and sturdy steed: the 2 wheeler

Recent Economic Developments

India is the 2nd largest two-wheeler market in the world with a size of over Rs

100,000 mn. Steps like abolition of licensing, removal of quantitative restrictions and

initiatives to bring the policy framework in consonance with WTO requirements have

set the industry in a progressive track. Removal of the restrictive environment has

helped restructuring, and enabled industry to absorb new technologies, aligning itself

with the global development and also to realize its potential in the country.

The liberalization policies have led to continuous increase in competition which

has ultimately resulted in modernization in line with the global standards as well as in

substantial cut in prices. Aggressive marketing by the auto finance companies have also

played a significant role in boosting automobile demand, especially from the population

in the middle income group.


Nature of market

In the initial years, entry of firms, capacity expansion, choice of products

including capacity mix and technology, all critical areas of functioning of an industry,

were effectively controlled by the State machinery.

However, the major set of reforms was launched in the year 1991 in response to

the major macroeconomic crisis faced by the economy. The industrial policies shifted

from a regime of regulation and tight control to a more liberalized and competitive era.

Two major results of policy changes during these years in two-wheeler industry were

that the, weaker players died out giving way to the new entrants and superior products

and a sizeable increase in number of brands entered the market that compelled the firms

to compete on the basis of product attributes

Key players in the Two-wheeler Industry:

There are many two-wheeler manufacturers in India. Major players in the 2-wheeler

industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS

Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd

(KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd

(Yamaha Scooterettes/Mopeds.), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd

(REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Types of Two-wheelers in India:

There are mainly three types of two-wheelers available in India. They are

Motorcycles, Scooters and


2.COMPANY PROFILE

ROYAL ENFIELD INDIA LTD

Classic Bikes with power for leisure riding is what a Royal Enfield bike stands

for, and Royal Enfield leads this segment of the market in India by leaps and bounds. Its

exquisite range of motorcycles combines distinctive styles with power, riding comfort

and ruggedness to deliver a unique motorcycling experience.

THE BEGINNING

The Enfield Cycle Company made motorcycles, bicycles, lawnmowers and

stationary engines under the name Royal Enfield out of its works based at Redditch,

Worcestershire. The legacy of weapons manufacture is reflected in the logo comprising

the cannon, and the motto "Made like a gun". Use of the brand name Royal Enfield was

licensed by the Crown in 1890

HISTORY OF THE COMPANY

Mid 19th century England The firm of George Townsend & Co. opened its doors

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

specialized in sewing needles and machine parts. In the first flush of enterprise, flitting

from one opportunity to another, they chanced upon the pedal-cycle trade.

Little did they know then that it was the beginning of the making of a legend.

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

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

Enfield Manufacturing Company Limited with the trademark ‘Made Like a Gun’. The

marquee was born.


INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors (formerly Enfield of India)

FOUNDED 1893, as Enfield Manufacturing Co. Ltd.

DEFUNCT 1971

HEADQUARTERS Redditch, Worcestershire, England

KEY PEOPLE Founders Albert Eadie and Robert Walker Smith

PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

Profile of the Organization

Royal Enfield is the makers of the famous Bullet

brand in India. Established in 1955, Royal Enfield (India)

is among the oldest bike companies. It stems from the

British manufacturer, Royal Enfield at Redditch. Royal

Enfield has its headquarters at Chennai in India. Bullet

bikes are famous for their power, stability and rugged

looks. It started in India for the Indian Army 350cc bikes were imported in kits from the UK and

assembled in Chennai. After a few years, on the insistence of Pandit Jawaharlal Nehru, the

company started producing the bikes in India and added the 500cc Bullet to its line. Within no time,

Bullet became popular in India.

Bullet became known for sheer

power, matchless stability, and

rugged looks. It looked tailor-made

for Indian roads. Motorcyclists in

the country dreamt to drive it. It

was particularly a favourite of the

Army and Police personnel. In 1990, Royal Enfield ventured into collaboration with the


Eicher Group, a leading automotive group in India, in 1990, and merged with it in 1994.

Apart from bikes, Eicher Group is involved in the production and sales of Tractors,

Commercial Vehicles, and Automotive Gears.

Royal Enfield made continuously incorporating new technology and systems in

its bikes. In 1996, when the Government of India imposed stringent norms for emission,

Royal Enfield was the first motorcycle manufacturer to comply. It was among the few

companies in India to obtain the WVTA (Whole Vehicle Type Approval) for meeting

the European Community norms. Today, Royal Enfield is considered the oldest

motorcycle model in the world still in production and Bullet is the longest production

run model.

THE EARLY YEARS

In 1909 Royal Enfield surprised the motorcycling world by introducing a small

Motorcycle with a 2 HP V twin Motosacoche engine of Swiss origin. In 1911 the next

model was powered by a 2 HP engine and boasted of the well known Enfield 2-speed

gear.

In 1912 came the JAP 6 HP 770 CC V twin with a sidecar combination. It was

this motorcycle which made Enfield a household name.

1914 saw the 3 HP motorcycles this time with Enfield own engine which now had

the standardized Enfield paint scheme of black enamelled parts and green tank with

gold trim

BETWEEN THE WARS

At the time of the outbreak of world war I Royal Enfield supplied consignments

of their 6 HP sidecar Outfit motorcycles with Stretchers to the Crown. This same

motorcycle also came with a Vickers machine Gun sidecar attachment which could also

be turned skywards and used against low flying aircraft. Royal Enfield supplied large

numbers of motorcycles to the British War Department and also won a motorcycle

contract for the Imperial Russian Government.

As the factory developed in the 20's the range of models also increased and in

1924 Royal Enfield was offering four versions of the 2 HP two-stroke motorcycle, two

new JAP engine 350 cc motorcycles and two versions of the 8 HP Vickers engine


sidecar combinations. During the great depression of the 30s Royal Enfield was also

affected and the demand for motorcycles waxed and waned but the bicycle

manufacturing continued at the same pace and the company trudged on. The Cycar, a

fully enclosed motorcycle model appeared in the early 30s.

During World War II, like other manufacturers of that time Royal Enfield was

also called upon by the British authorities to develop and manufacture military

motorcycles. The models produced for the military were the WD/C 350 cc SV, WD/CO

350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV and WD/L 570 cc SV.

One of the most well-known Enfield was the Royal Enfield WD/RE, known as

the Flying Flea, a lightweight 125 cc motorcycle designed to be dropped by parachute

with airborne troops.

After the war the factory continued manufacturing the models developed during

the war and the legendary J 2 model appeared which went on to be the ancestor of the

legendary Bullet. The same motorcycle which perhaps had the honor of the being the

one with the longest production run in the world.

PRODUCTS


THE INDIA CONNECTION

The grandfather of the bullet was first produced by Royal Enfield in 1931: a four

valve single cylinder was introduced, given the name “BULLET” in 1932. it had an

inclined engine and exposed valve gear. The 1935-G model was the first that assumed

the modern look, with vertical cylinder, cast in pushrod tunnel and

eventually fully enclosed valve gear. It has a gear- driven magneto and double-

ended eccentric oil pump. Over the next few years the single would sport two, three and

four valve cylinder heads.

1948: The first 350-bullet roadster was introduced. Although it was similar in

many ways to the 1935-G model bullet, it was a new motorcycle with many design

innovations. It was the first British production bike with a rear swing arm. It also had an

oil filter (with integral oil tank in the crankcase behind the crank) and alloy primary

chain case. It was a two- valve pushrod design in semi unit style, with gearbox bolted to

crankcase. Rubber kneep ads were on the gas tank. It had four gears (one up, three

down like most British bikes of that era- apparently triumph was the oddity with high

gears up). A trials / scrambler model was also introduced.

1949: the sports model had an unsprung front mudguard.

1951: modifications include smaller front mudguard and silencer, alloy

speedometer nacelle and modified fork ends.

1952: a crankcase breather was fitted plus a side stands. Trials model gets alloy

barrel. Apparently only 16350 bullets made this year. A prototype 500-cc model is

shown in an industry motorcycle show.

1953: the 500 cc roadster model is introduced. The 350cc was upgraded to include

changes designed for the 500cc improved bottom end with four main bearings,

improved lubrication system, modified frame, larger rear brake, single pilot light under

headlamp.

1954: a new casquette (nacelle with speedometer, headlight and twin sidelights)

replaces headlamp bracket. The exhaust angle and rear spring and shock are changed.

The 350 got a frame lug changed. The 350 got a frame lug change. Armstrong units

were adopted for suspension, giving 50 percent more movement.


1955: camshaft upgrade. The concentric kicks start and gear changes ever on the

gearbox, plus the air filter are changed. The front brake gets a twin, full width hub, and

brake. The 350 get amonobloc carb. The benchy (dual) seat is now standard, although

the single saddle seat was still available. Around this time, the 500cc bullet was also

sold in America as the Indian “woodsman” In 1955 the Indian government needed a

solid and reliable motorcycle for its police and army, in particular to patrol the rugged

border highways. The bullet was chosen as the most suitable bike for the job. The

Indian government ordered 800 of the 350cc models beyond the company’s ability to

fill at the time. With more orders from India looming, the company sold its design to

Enfield India, a subsidiary firm in madras, India to start manufacturing them. There was

some retooling and redesign done at the English plant (Redditch) in 1955 to modernize

the bullet (including changes in the gear ratios in 1959). Between 1956 and 1960, the

bullet was released in several models, including a 350cc trials “ works replica” version

and a 350cc “ clipper” model. Technically the engines and power trains were the same

(except for bore size) and the only differences were in exhaust, seating, and

instrumentation. Handlebars and gas tank.

A lot of technical improvements were also making in that time, including moving

to alternator charging (1956) and coil ignition (1960). The 350cc model continued in

production, but the 500cc model was dropped in 1961. An “airflow” model was also

made briefly, with a fairing.

1956: Both models underwent several improvements in a new frame and air filter

housing, battery/ toolkit bow. The engine got a wider floating big-end bush and

cylinders head changes (separate rocker boxes retained) and stronger bottom end. The

500 dual seat was introduced by the Modern Indian Enfield which uses the post- 56

(with metric bearing sizes). And even it used the earlier frame. 1956 Saw an all-welded,

brazed-lug frame introduced, and also sent to India.

1957: Quick-detach rear wheel was introduced as an option. The air filter was

enlarged. The 350cc got an alternator. The bullet is now fully manufactured in India

under the license, at Anna Salai; near Chennai. The tooling equipment was also sold to

make the 350cc bullet in India in 1958. Later the Indian firm upgraded to make the

500cc model as well (one printed source says tooling for both models was sold to India

in 1967 but most agree it was 1957).


By this time the English company was under different ownership and that year

they closed the Redditch factory where bullets were manufactured, and hence all the

possible remaining tooling equipments were sold to Chennai at that time, but they

certainly had manufacturing equipment in India a decade ago. On source, Peter Snidal,

says that there were “Moto Cross”(MX) bullets made in this period. The 350 had a cast

aluminium head and the 500 cc an iron barrel. Apparently two 350s and two 500cc were

imported into Vancouver by Frank Carr in 1957. Carr succumbed to cancer shortly after

they arrived and his business stood down at that time. The entire MX bullet that came

into Vancouver in 1957 had Lucas Magdynos on them.

They also were equipped with quick-detachable lights and number plates on the

rear frame, plus high straight pipes as well. They were very fast bikes. The 350 would

blow away just about anything on the street up to 70mph or so.

He says they were essentially the bikes that he saw advertised in cycle magazines

of the time as the Indian woodsman and warrior-competition models. They were very

fast bikes, Snidal writes. “The 350 would blow away just about anything on the street

up to 70mph or so. In fact, I not only saw the original owner of one of them to do it to

just about all of us, at one time or another, including a 500Velo Venom, which was the

2nd fastest (after that day) in our little pack, but also 350 Vipers, (both of them) and

everything else came up again. A few years later, I got hold of it, and Rebuilt/Restored

it, and once again blew away TR6’s with impunity. It had very radical cams (straight

up, open a long time, straight down-the ramps were so steep is looked like they’d just

am the camp followers -and the 350’s came with a 15:1 piston”).

1959: Smaller 17-inch wheels. Coil ignition. Optional Airflow fairing with deeper

front mudguard. Forks modified. Oval oil pump cover plates on 500cc. 30cc got larger,

re-shaped 3.75-gallon gas tank, chain enclosure and larger, wider seven-inch front brake

(the 500 retained its six inch twin drum brake). New stylish gas

tank, trials model gets heavier fly wheels, and exhaust is tucked away, but

continues with magneto.

1960: huge, one –piece alloy cylinder head (big head) casting plus new, larger

‘chunky’ tank for 500. This is also the engine design used for the India Enfield bullet,

coil ignition is introduced.


The Royal Enfield fury, produced at this time for the US market, is essentially the

same bike as the Bullet (both 350 and 500cc models), capable of reaching the 100 mph

mark (a f 350cc Enfield tuned by Steve Lindsell in the late 1970s reached 95.64 mph).

It deferred from the bullet by having a the bullets iron and a higher compression piston

(8:9:1 instead of 7:3:1 ). It also had a flange for mounting an optional rev counter, an 18

– inch rear and 19-inch front wheel. Between 1959 and 1963,only 191 machines were

made.

The 500cc boasted a 40bhp output, up from the UK models production of 27bhp.

A 600cc model was also made for a short period.

1961: detachable end – cap fishtail silencer, trials model discontinued except by

special order.

1962: deeper rear mudguard. Both 350 and 500 models discontinued. The UK

Company was sold in 1962 and the bullet line discontinued. Enfield India continued to

churn out bullets just the way they were made in England in 1955. Forty years later they

still do, with a few minor modifications (signal lights, a 28m Mikuni card, 12-volt

electric’s a better bench seat and in 1990. twin leading – shoe

brakes). While not the largest motorcycle manufacturer in India (they rank about

third, producing around 18,500 bikes a year but have plans to increase that to 25,000)

they are one of its oldest. Initial attempts to import 350 bullets into the UK in the

1970’s (by the Slater brother and later Evesham motorcycles – according to

one source the actual date of the first re-introduction was 1977), were

unsuccessful. The bike wasn’t up to par and the exchange r ate wasn’t very good. So

they were not as inexpensive as they are today. The Indian company had little interest in

making changes the few sales exports could garner.

In 1986, Raja Narayanan, a UK civil servant, returned to his home in India and

started an export farm for the company to bring the bullet back into England. He got his

first 350 into England that year. He was responsible for many of the production change

that

improved sales and quality over the years. He responsible for many of the

production changes that improved sales & quality over the years. It was the prodigal

son returning home.


The bike appeared in UK motorcycle shows in 1989 and at the classic bike show

in Stafford in 1990. Canada started importing them three years ago, and the US in 1995.

Twenty countries now import them. In late 1995, the Indian firm finally acquired

the name Royal Enfield as their own. The Canadian importer started putting the new

decals on the tank in early 1996. Recently Swiss engineer fritz Egli has been working

with Enfield to improve production for exports models. He also designed performance

improvements for his own retail sales bullets and has been discussing a five-speed

transmission with the company. He designed a 535cc version, which produces 45bhp

and 624cc racer (47c.bhp with a top speed to 160dph, 100 mph neither one has made it

to North America….yet).

CLOSEOUT IN UK

Royal Enfield UK continued manufacturing motorcycles and came out with some

more innovative and powerful machines notably the Royal Enfield Meteor,

Constellation and finally the Interceptor 700, before being sold to Norton-Triumph-

Villiers (NVT) in 1968. Production ceased in 1970 and the company was dissolved in

1971. Remaining tooling and equipment of the Redditch works were auctioned off.

Meanwhile the Bullet 350 continued to be manufactured in India and by the

1980ӳ the motorcycles were even exported to Europe out of India. Even after the

motorcycle manufacturing closed down the precision engineering division ran for some

more time and even bicycles were produced until quite late.

THE EICHER CHAPTER

In 1990, Enfield India entered into a strategic alliance with the Eicher Group, and

later merged with it in 1994. It was during this merger that the name Enfield India

changed to Royal Enfield. The Eicher Group is one of India's leading automotive

groups with diversified interests in the manufacture of Tractors, Commercial Vehicles,

Automotive Gears, Exports, Garments, Management Consultancy and Motorcycles.

Since then, the Company has made considerable investments in modernizing its

manufacturing technology and systems.


In 1996, when the Government decided to impose stringent norms for emission

Royal Enfield was the first motorcycle manufacturer to comply, a tradition which has

stuck on thus making emission norms being one of the most important factors the

company focuses on. Royal Enfield is amongst the first few Indian companies to obtain

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

norms.

INFRASTRUCTURE AND TECHNOLOGY

To manufacture quality bikes that are well known worldwide for their reliability

and toughness state-of-the-art infrastructure is required, and that is just what Royal

Enfield has done at their Chennai manufacturing facility. An active in-house Research

& Development wing is constantly at work to meet changing customer preferences and

the challenges of Indian and International environment standards. When introducing a

new product, this team undertakes all related planning which includes a rigorous

customer contact program, design, concurrent engineering and testing processes. The

Motorcycle Design team at Royal Enfield is well equipped with high-end CAD/CAM

workstations and the latest modelling software. Top-notch designers work continuously

to come up with innovative bikes designs to meet the market expectations. Continuous

rigorous testing of motorcycles and components is carried out in the Product

Development testing lab to come up with more improvements in enhancing the

customer experience

MANUFACTURING

Royal Enfield's manufacturing operations go through a series of modernization

and improvement efforts, with a number of automated processes. The Company has put

in place modern manufacturing practices like Cellular layouts, Statistical process

controls and Flexible manufacturing systems.

The Chennai manufacturing facility has received the ISO 9001 certification and

for managing its operations in a clean and safe environment, it has obtained the ISO

14001-quality certification and kaizens are implemented to ensure the quality levels are

kept at an ever rising pace.


Royal Enfield ensures that all the components used in the bikes are sourced from

the best vendors in the Indian automotive industry, who are geared to supply according

to the Company’s stringent quality standards.

The company works closely with all of its suppliers, giving them technical and

managerial support while maintaining practices like Direct-On-Line and Vendor Self-

Certification.

MARKETING NETWORK

You can feel the pulse of your customers, only if you get close to them. This

thought process has driven Royal Enfield to set up has a wide network of 11 Brand

Stores, 180 dealers in all major cities and towns, and over 100 Authorized Service

Centre. The Company also exports motorcycles to 42 countries like the USA, Japan,

UAE, Korea, Bahrain, UK, France, Germany, Argentina and many other countries

through 40 importers and over 300 dealers across the globe

ROYAL ENFIELD REVVING UP

With the finest and brightest of teams in the country, comprising of management

professionals and a skilful, committed workforce, the Company has a unique and open

culture, making Royal Enfield a vibrant and responsive company. To its customers in

India and elsewhere in the world, Royal Enfield means more than just motorcycles; it's

a sense of belonging to an exclusive community with unfading passion, emotion and

interest.

As the only motorcycle manufactured in India synonymous with adventure and

leisure riding, Royal Enfield has more recently stayed away from regular mass media

advertising and has concentrated more on building its brand around the values that the

brand stands for. Having a Cult status the Royal Enfield motorcycle is known for its

Versatility, Uniqueness and is built to last. Perceived as a machine in a class of its own

and synonymous with Leisure and Adventure; riding and charting up the miles.

Royal Enfield strongly promotes leisure motorcycling as a lifestyle and

encourages the Royal Enfield riders/owners to keep riding. In this regard, the company

organizes annual events and rides such as the Himalayan Odyssey, The Tour of Rann of

Kutch, The Tour of NH 17 (Mumbai to Goa)


The Tour of Rajasthan and the Southern Odyssey. It also organizes the Annual

festival of biking, Rider Mania in Goa which attracts Royal Enfield riders from all over.

AWARDS AND ACCOLADES:

- 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 2010,2012-13: Motorcycle of the Year above 250 cc.

- NDTV Profit Car & Bike awards 2010,2012-13: Best PR

Communications Team.


SWOT ANALYSIS

SWOT ANALYSIS of Royal Enfield:

SWOT Analysis

Strength

1. Size and scale of parent company

2. Effective Advertising Capability

3. High emphasis on R and D

4. Established brand name in the cruiser market

5. Established market distribution channel6. Exports motorcycles to 31 countries like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany, Argentina and many other countries

Weakness

1. Weight of the motor cycle can be an issue for few customers.2. Mileage of high cc bikes is an issue

Opportunity

1.Two-wheeler segment is one of the most growing industries2.Export of bikes is limited i.e. untapped international markets

Threats

1. Strong competition from Indian as well as international brands2. Dependence on government policies and rising fuel prices3. Better public transport will affect two-wheeler sales

Competition

Competitors

1. Bajaj Auto2. Hero Motor Corp (Hero Honda)3.TVS4.Suzuki5. Harley Davidson6. Yamaha 7. Ducati


COMPETETORS INFORMATION

MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET

GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES

A Bajaj

Hero Moto Corp

Highly diversified

Aggressive promotion

- High buyer power

- High competitive

rivalry

- High entry barriers

B TVS Selectively diversified

Aggressive Promotion

- Low entry barriers

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

C Honda

Yamaha

Selectively diversified

Moderate Promotion

-High threat of

substitution (Rs 1 lakh car)

- Low entry barriers


MCKENSY'S 7S FRAME WORK

STRATEGY:

Royal Enfield Motors has started working on a new strategy with less waiting periods,

more frequent launches and capacity ramp-up, thereby leading to a significant growth

after transferring from its traditional set up to updated engine platform.

The company registered a growth of 45 percent in the export region with as many as

3,630 units in 2012 in comparison to 2,953 units in 2011.


STRUCTURE:

ORGANISATIONAL STRUCTURE

SYSTEMS:

The daily activities and procedures that staff members engage in to get the job done.

SHARED VALUE:

These are called “super ordinate goals” when the model was first developed, these are

the core values of the company that are evidenced in the corporate culture and the

general work ethic.


GENERAL MANAGER

(Proprietor)

Service ManagerSales Manager Service Manager

Showroom

In charge

Service

Supervisor

Accountant

Team

Manager

Service

Staffs

Assistant

Accountant

Sales

Representative

STYLE:

Royal Enfield Motors, the manufacturer of the Bullet motorcycle and a division of the

Rs 1,300 crore Eicher Group, is slated to come out with a radically different street

motorcycle, apart from newer versions of the 350cc 'Bullet Machismo' and 'Bullet

Thunderbird'.

The division of Eicher is also looking at profitability in the next fiscal, whilst

working towards offering only two engine options across its product portfolio,

according to a senior company official.

"The new bike will be radically different in terms of style and usage patterns and the

company is hoping for a launch in the next couple of quarters". It is also looking to

introduce different variants towards existing models every six to seven months.

STAFF:

The training for new staff along with the new systems and processes has begun. The

new factory will have a new, state of the art paint shop which is superior to most other

manufacturers in India and will be at par with international standards.

Many steps are being taken to improve working conditions for workers as well. Also

with growing popularity of the brand many passionate riders will join the team for

development and production. Also many ladies are joining the company in general

functions due to the change in image of Royal Enfield motorcycles.

SKILLS:

The actual skills and competencies of the employees working for the company. people at the Royal

Enfield possess wide range of skills and are working towards the development of the company


PART-B

GENERAL INTRODUCTION

Title of the project

The project study is "consumer perception towards Royal Enfield bikes"

Statement of the problem

The study determines the perception of the consumer towards the Royal Enfield

bikes. The study thus seeks to collect the information from the respondents on the usage

patterns and preference bike what they feel about the product or if there is any thing that

the consumer do not like the product in this respect

Objective of the study

The objectives of the study are as follows:

To study the consumer perception towards the Royal Enfield bikes.

To understand the attitude of the consumers towards the Royal Enfield bikes and

also to understand the buyer behavior.

To study the brand awareness, brand images and perception of consumers towards

various brands.

To study the preference of customers on different varieties of Royal Enfield bikes.

To study consumers expectations in respect to Royal Enfield bikes.

To study the brand loyalty of Royal Enfield customers.

To give suitable conclusions and recommendations for findings.

Scope of the study

The study helped in knowing about the awareness and satisfaction and also the

perception of consumers towards Royal Enfield. It also helped to analyse the dealer's

attitude towards the service and benefits rendered by the company.


This study also helps the management graduates and fellow researchers who would

like to increase their knowledge on the subjects which might be of help in the near

future while looking for works.

Limitations of the study

1. The research was confined to Bangalore city only; it represents the customer's

perception towards Royal Enfield bikes.

2. The second limitation was the lack of time due to which only 100 questionnaires

were distributed. And also 100 questionnaires are very small in number.

3. The third limitation is that assumptions were made that respondents have disclosed

the correct information.

4. Even among the 100 consumers some were not so patient to fill the questions given

to them due to lack of time.

researcher was able to overcome the above limitations in order to collect the

useful data for the present study. The above limitations in no way affect quality of

the study.

METHODOLOGY OF THE STUDY

The research was carried out through survey method. Fieldwork was carried out in

order to collect the data. Data was collected through questionnaire and interview with

consumers. The study analysis of the data was done through simple statistical technique

such as drawings of percentage for generalization. Construction to tables for tabulating

the primary data. The use of bar diagrams, Pie diagrams and base diagrams to have

better understanding etc., of the study are also adopted in the study.

AREA OF STUDY

Data were collected from three sources for the present study.

collection of data

1. Primary data

2. Secondary data

3. Field data


1. PRIMARY DATA

Primary data assumes a great importance in this type of studies. In this study

primary data had been collected from structured questionnaires, observation methods,

and interpretation with the executives of the company. In these ways data's are very

important and plays a vital role.

2. SECONDARY DATA

Secondary data had been gathered from many sources namely.

Company records and reports.

Company website, news papers, magazines and journals.

Standard references and books

purpose of using secondary data was to increase accuracy, interpretation conclusion

and recommendations.

3.FIELD WORK

The study involved a fieldwork of around 10 days. where in target segments, users

were contacted individually, questionnaires were given to them and answers were

collected. Field study was conducted in various parts of Bangalore city.

SAMPLING PLAN

The term sampling plan refers to the investigation of the part of sole population

representing its general qualities as far as possible. Sampling is a tool which enables us

to draw conclusion about the characteristics of the population after studying; only these

subjects or items are included in the sample. Convenient sampling method was used for

the study.

Sampling techniques

The sampling techniques used for the purpose of this project report was convenience

sampling, which is a non probability sampling. In this kind the respondents are chosen

according to the researcher. The respondents were selected according to convenience

and care was taken to interview respondents from different parts of Bangalore city.


Sample size

In this project a sample size of 100 individuals was chosen for the study.

Tools and techniques of data collection

The survey was did by distributing the structured questionnaires

Convenient sampling method was used to collect the information


INTRODUCTION TO MARKETING

Marketing is the process of performing market research, selling products and/or

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

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

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

strong customer relationships and create value for their customers and for themselves.

Marketing is used to identify the customer, to satisfy the customer, and to keep the

customer. With the customer as the focus of its activities, it can be concluded that

marketing management is one of the major components of business management.

Marketing evolved to meet the stasis in developing new markets caused by mature

markets and overcapacities in the last 2-3 centuries. The adoption of marketing

strategies requires businesses to shift their focus from production to the perceived needs

and wants of their customers as the means of staying profitable.

The term marketing concept holds that achieving organizational goals depends on

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

It proposes that in order to satisfy its organizational objectives, an organization should

anticipate the needs and wants of consumers and satisfy these more effectively than

competitors.

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

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

Throughout history, marketing has changed considerably in time with consumer tastes.


http://en.wikipedia.org/wiki/Target_markets

http://en.wikipedia.org/wiki/Profit_(accounting)

http://en.wikipedia.org/wiki/Manufacturing

http://en.wikipedia.org/wiki/Overcapacity

http://en.wikipedia.org/wiki/Mature_market

http://en.wikipedia.org/wiki/Mature_market

http://en.wikipedia.org/wiki/Outline_of_business_management

http://en.wikipedia.org/wiki/Marketing_management

http://en.wikipedia.org/wiki/Customer


http://en.wikipedia.org/wiki/Customer_relationship_management

http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Advertising


http://en.wikipedia.org/wiki/Services

http://en.wikipedia.org/wiki/Products

http://en.wikipedia.org/wiki/Selling

http://en.wikipedia.org/wiki/Market_research

CONSUMER PERCEPTION

Perception is the process by which an individual selects, organizes ad interprets

information inputs to create a meaningful picture of the world. A stimulus is any unit of

input to any of the senses. Stimuli include products, packages, brand names,

advertisements and commercials. Sensory receptions are the human organs (the eyes,

ears, nose, mouth and skins) that receive sensory inputs. Their sensory function is to

see, hear and smell taste and feel. All of these functions are called into play either

singly or in combination in the evaluation and use of the most consumer products.

perception has strategy implication for marketers because consumers make decision

based on what they perceived rather on the basis of same object because of three

perceptual process. They are

1. SELECTIVE ATTENTION:

Selective attention means that marketers have to work hard to attract

consumer's notice

2. SELECTIVE DISTORTION:

Sometimes even noticed stimuli do not always come across in the way the

senders intended. Selective distortion is the tendency to twist information into

personal meanings and interpret information in a way that will fit our

preconceptions. Unfortunately there is not much that marketers can do about

selective distortion.

3. SELECTIVE RETENTION:

people will tend to forget much that they learn but will tend to retain

information that supports their attitudes and beliefs.

Because of selective retention, we are likely good points mentioned about a product.

Selective retention explains why marketers use drama and repetition in sending

messages to their target market.

ATTITUDE

An attitude is a person's enduring favorable or unfavorable evaluation, emotional

feelings and action tendencies towards some idea or object


MEANING OF CONSUMER PERCEPTION

Perception is the process by which an individual selects, organizes and interprets

information inputs to create a meaningful picture of world. The key word is the

definition perception is individual; one person might perceive a fast talking sales person

as aggressive, another as intelligent. People can emerge with different perception of the

object customers oriented thinking requires the company to define customers needs

from of view. Every product involves tradeoffs and management cannot know what

they are without talking and researching customers. Thus a car buyer would like a high

performance car that never breaks down., that is safe attractively styled and also cheap

or affordable for the people. Since all of these virtues cannot be combined in one car,

the car designers must make hard choices not on what pleases them but rather on what

customers prefer or expect from them or from the product that they are going to buy. As

the main aim is after all to make a sale through meeting the customer's needs.

Why is it supremely important to know the perception of the customers because

basically a company's sales each period comes from 2 groups? They are

1. New customers

2. old customers

Customer retention is more critical than customer attraction and the key to

customer's retention is to know the customers perception about the company or product

and see to it that the customer is fully satisfied. A company who learns the perception

of the consumers is surely going to create loyal customers. Therefore loyal customers:

1. Buys again.

2. Talks favorably to others about the company.

3. Pays less attention to competing brands and advertising.

4. Buys others products also from the same company.

Hence companies should go beyond meeting the mere expectations of the consumers.

The companies should keep mind what the consumers feel about the brand or the

product and should go on fulfilling their needs and what changes delight a customer, the

consumer talks to even more acquaintances about the fine company and their product.


The delighted and the satisfied consumers are more effective advertisers than the

advertisements that are placed or given in the media. Now let us consider what happens

when the company is unaware of consumer's perception: As we have pointed out that

consumer only do the advertising of the company who are aware of consumers

perception and know their expectations and fulfill their needs. A company who is

unaware of consumer's perception doesn't survive in the competitive market. Customers

will be dissatisfied with their products. In fact in one study, 13% of the people who had

a problem with an organization complained about the company to more than 20 people.

Suppose each person who told the bad story about the company to eleven people, who

told another eleven, and so on. Clearly, bad word of mouth can easily poison public's

attitude about the company.

Thus a company should be wise enough to regularly be in touch with the consumers.

It cannot also rely first on voluntary complaints from the customers when they are

dissatisfied. In fact, 96% of unhappy customers never tell the company. Companies

should set up suggestion and survey systems to maximize the customer's opportunity to

complain. In this way the company will learn how well it is doing. It is also a major

way for the company to learn how to do better from before. The company also claims

that over two thirds of its innovation ideas come from listening to consumer complaints.

Listening is not enough, the company must respond constructively to the complaints

of the consumers who register a complaint. Customer who have complained to an

organization and had their complaints satisfactorily resolved tell to an average 5 people

about the treatment they received.

when a company realizes that a loyal customer may account for a substantial sum of

revenue over the years. It seems foolish to risk losing the customer by ignoring a

grievance or quarrelling over a small matter. For e.g. IBM makes every sales person

write a full report on each lost customer and all steps are taken to know the perception

of customers, why they lost and try to regain that lost consumer by fulfilling their needs

or by improving the products

The customer-oriented company should manage to increase consumer needs and

loyalty so that they don't have to worry even if its profits are down in a particular year.

But if on the other hand the profits rises but its customers keep falling than the company

is on wrong track.


Profits could go up and down in a particular year for many reasons including rising

costs, falling prices, major new investments etc., but the ultimate sign of a healthy

company is that its customers are loyal. Consumer perception is the best means for the

company's future profits and growth.

UNDERSTANDING PERCEPTION

Information processing involves a series activity by which stimuli are perceived,

transformation into meaningful information are stored. As shown in the following

figure the first three steps constitute perception and fourth represents storage of

information (memory).

Reality to an individual's perception, a personal phenomenon, on the basis of which

the individuals acts or reacts and not on the basis of objectives reality. For this reason,

marketers are particularly interested in consumers perception than their knowledge of

objectives reality. Simply put, perception is how see the world around us. different

individuals may be exposed to the same stimuli under the same conditions but how each

individual recognizes the stimuli, selects them, organizes them and interprets them is

unique in case of each person and depends on his needs, wants, values, benefits,

personal experiences, moods and expectations. Perception is also influenced by

characteristics of the stimuli, such as size, color, intensity etc. And the context in which

it is seen or heard. Some of the basic concepts associated with the perception are as

follows.

DEFINITION

Schiffman and kanuk have defined perception as "The process by which an

individual selects, organizes and interprets into a meaningful and coherent picture of the

world". A stimulus is the unit of input to a sensory reception. In a marketing context,

the stimuli include brand names, advertisements, colors, sounds, and packages etc.


STIMULUS FACTORS

These are attempts at different and often merit the attention of consumers.

Expectations

People generally see what they expect to see and this expectations is based on

familiarity and previous experience. Consumers often perceive production and produce

attributes as per their expectations.

Motives

Consumers tend to perceive those things that are top most in the most in their need

are want list. They are highly perceptive of stimuli that are relevant to their needs and

interests, thus, stronger the felt need, greater is the tendency to notice motive related

things and ignore unrelated stimuli in the environment.

selective exposure

Exposure occurs when consumer's senses are activated by stimulus. Consumers are

attentive to stimuli, which are relevant, pleasure, or towards which they may be

sympathetic and ignore unpleasant and painful ones.

selective attention

Attention is the momentary focusing of a consumer's cognitive capacity on a

particular stimulus. Consumers have increased awareness of stimuli that are relevant to

their felt needs or interests and decreased awareness of irrelevant stimuli.

Adaptation

Adaptation refers to gradual adjustment to stimuli to which consumers are exposed

for prolonged period. Because of adaptation, consumers do not notice stimuli to which

they have become adjusted.

Perceptual vigilance and defense

Perceptual defense is more likely in anxiety-production stimulus. Because of this

reason, unpleasant, damaging, or threatening stimuli have less of a chance to be

perceived compared to neutral stimuli at the same level of exposure.


DATA ANALYSIS AND INTERPRETATION

Proceeding chapters were addressed to the varied techniques of data

collection and the methodological rational underlying them. The question that naturally

follows is; what is to be done with data that are collected? In this chapter we shall deal

with that question.

Analysis of data involves a number of closely related operations that are performed

with the purpose of summarizing the collected data and organizing these in such

manner that they will yield answer to the research question.


TABLE-1

TABLE SHOWING THE RESPONDENTS OCCUPATION

Sl no Occupation No of respondents Percentage

1 Student 34 34%

2 Businessman 32 32%

3 Professionals 34 34%

4 Others 12 12%

Total 100

INTERPRETATION

The above table's shows that majority of the respondents who ride Royal Enfield

bikes were emerged as students and professionals compared to that of businessman and

others. It is clear from the table that researcher has covered all types of users for the

study.

Student Businessman Professionals Others

No of respondents 34 32 34 12 NaN

2.5

7.5

12.5

17.5

22.5

27.5

32.5

Occupation


TABLE-2

TABLE SHOWING AGE GROUP OF RESPONDENTS

Sl no Age group No of respondents Percentage

1 20-30 Years 62 62%

2 30-50 Years 30 30%

3 50 Years and above 8 8%

Total 100

INTERPRETATION

The above table shows that the majority of the customers who ride Royal Enfield

bike were in the age group of 20-30 who are mostly students compared to the age group

of 30-50 and 50 and above who were mostly comprised of professionals and others. It is

clear from the table that researcher has covered all the age groups for study.

20-30 Years 30-50 Years 50 Years and above

0

10

20

30

40

50

60

70

No of respondents


TABLE-3

TABLE SHOWING THE ANNUAL INCOME GROUP OF

RESPONDENTS

Sl no Income group No of respondents Percentage

1 Less than 1,20,000 28 28%

2 1,20,000-3,60,000 24 24%

3 3,60,000-7,20,000 38 38%

4 7,20,000 and above 10 10%

Total 100

INTERPRETATION

The survey so conducted assesses the objectives of the research. From the above

table it is evident that majority of the respondents belong to the annual income group of

3,60,000-7,20,000 compared to that of 1,20,000-3,60,000 and less than 1,20,000 who

are little less. We can also see that the income group of 7,20,000 and above are very

few in number.

Less than 1,20,000 1,20,000-3,60,000 3,60,000-7,20,000 7,20,000 and above0

5

10

15

20

25

30

35

40

Annual Income


TABLE-4

TABLE SHOWING THE MODEL OF BIKES USED BY THE RESPONDENTS

Sl no Model No of respondents Percentage

1 Classic 350 26 26%

2 Classic 500 16 16%

3 Electra 32 32%

4 Thunderbird 14 14%

5 Others 12 12%

Total 100

INTERPRETATION

Here the table shows the type of vehicles used by the respondents. We can see that

majority of respondents that is 32 of them use Electra compared to that of all the

remaining models. The model classic 350 is highly popular among youth especially

26%

16%

32%

14%

12%

No of respondentsClassic 350 Classic 500 Electra Thunderbird Others


TABLE-5

TABLE SHOWING THE ATTRIBUTES PREFFERED BY THE

RESPONDENTS BEFORE PURCHASING THE BIKE

Sl no Attributes No of respondents Percentage

1 Style 46 46%

2 Status symbol 26 26%

3 Maintenance 10 10%

4 Power of bike 18 18%

Total 100

INTERPRETATION

The above table shows the attributes preferred by respondents before purchasing the

bike. Majority of the respondents prefer the bike because of its style and status symbol

and only few of them prefer it looking at the maintenance and power of bike.

StyleStatus symbol

power of bikeMaintenance

0

5

10

15

20

25

30

35

40

45

50 Attributes

No of respondents


TABLE-6

TABLE SHOWING HOW THE RESPONDENTS CAME TO KNOW

ABOUT ROYAL ENFIELD BIKE


1 Newspaper 16 16%

2 Advertisement 30 30%

3 Friends/Relatives 54 54%

Total 100

INTERPRETATION

From the above table it is revealed that majority of the customers of Royal Enfield

came to know about the bikes through friends and relatives, rather than by

advertisement or newspapers. so it can be concluded that more and more customers are

knowing about the product through friends and relatives.

Newspapers Advertisement Friends/Relative0

10

20

30

40

50

60

No of respondents

Attributes


TABLE-7

TABLE SHOWING THE PURPOSE OF RESPONDENTS FOR

USING THE BIKE


1 College 22 22%

2 Style 20 20%

3 Office 42 42%

4 Others 16 16%

Total 100

INTERPRETATION

The above table shows the purpose for which the respondents use the bike. It is

found that majority of respondents use the bike for going to office compared to college

and style. It is also seen that few of hardcore Royal Enfield riders use the bike for other

purpose such as tripping or expeditions.

22%

20%

42%

16%

No of respondentsCollege Style Office others


TABLE-8

TABLE SHOWING HOW THE ATTRIBUTES WHICH MAKES THE

RESPONDENTS EXTREMELY HAPPY WITH RESPECT TO BIKE


1 Style 22 22%

2 Power of bike 50 50%

3 Mileage 14 14%

4 Maintenance 6 6%

5 Others 8 8%

Total 100

INTERPRETATION

In the above table it is shown the attributes of the bike which makes the respondents

extremely happy. It has been found out that majority of respondents are happy with the

power of bike, style also plays an important part for the riders whereas mileage,

maintenance and some other attributes are less considered.

Style Power of bike Mileage Maintenance Others

22

50

14

6 8

AttributesNo of respondents


TABLE-9

TABLE SHOWING THE PERCEPTION OF THE RESPONDENTS

TOWARDS ROYAL ENFIELD WHEN COMPARED TO OTHER BIKES


1 Excellent 56 56%

2 Good 26 26%

3 Average 10 10%

4 Poor 8 8%

Total 100

INTERPRETATION

Here from the above table it is shown that majority of the respondents feel that their

bike is excellent and good when compared to other bikes which is available in the

market, whereas there are very few to believe that it is poor.

ExcellentGood

Average

Poor

No of respondents


TABLE-10

TABLE SHOWING CUSTOMER'S SATISFACTION WITH

RESPECT TO MILEAGE OF THE BIKE

Sl no Response No of respondents Percentage

1 Yes 38 38%

2 No 62 62%

Total 100

INTERPRETATION

From the above table it is evident that majority of the customers are not happy with

the mileage of the bike, though it is very much clear that the bike is preferred only

because of its power and status symbol and not because of its mileage.

38%

62%

No of respondentsYes No


TABLE-11

TABLE SHOWING PERCEPTION OF THE CUSTOMERS TOWARDS

MAINTENANCE OF ROYAL ENFIELD BIKE

Sl no Perception No of respondents Percentage

1 Expensive 52 52%

2 Affordable 34 34%

3 Cheap 14 14%

Total 100

INTERPRETATION

The above table shows that majority of the customers feel that it is too expensive to

maintain the bike and some customers also feel that it is affordable, whereas very few

think that it is cheap.

ExpensiveAffordable

Cheap

0

10

20

30

40

50

60

No of respondents

Perception


TABLE-12

TABLE SHOWING SUITABILITY OF ROYAL ENFIELD BIKES FOR

ALL TYPES OF ROADS

Sl no Suitability No of respondents Percentage

1 Yes 76 76%

2 No 24 24%

Total 100

INTERPRETATION

From the above table it is evident that majority of the customers feel that it is

suitable for all kinds of roads compared to very few who feel it doesn't. Therefore it is

clear that the bike suits almost all kinds of roads.

76%

24%

Suitability

YesNo


TABLE-13

TABLE SHOWING PERCEPTION OF THE RESPONDENTS

TOWARDS THE APPEARENCE OF THE BIKE


1 Excellent 47 47%

2 Good 40 40%

3 Average 10 10%

4 Poor 3 3%

Total 100

INTERPRETATION

Here from the above table it can be seen that majority of the customers who ride

Royal Enfield bike feel that the appearance is excellent and good compared to very few

who feel that it is average or poor .

Excellent Good Average Poor

No of respondents 47 40 10 3

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

47.5

Attributes


TABLE-14


TOWARDS PRICE OF THE BIKE


1 Costly 42 42%

2 Standard 51 51%

3 Economical 7 7%

Total 100

INTERPRETATION

From the above table it is clear that majority of the respondents are of the opinion

that price of the Royal Enfield bike is standard and also costly compared to very few

who feel it is economical.

Costly Standard Economical0

10

20

30

40

50

60

Attributes

No of respondents


TABLE-15

TABLE SHOWING THE PERCEPTION OF THE

RESPONDENTS TOWARDS THE VARIATION OF THE BIKE


1 Price 22 22%

2 Quality 17 17%

3 Service 43 43%

4 Mileage 18 18%

Total 100

INTERPRETATION

Here from the above table it is shown that the majority of the respondents feel that

there is variation in the service of the bike after it is purchased from the outlet,

compared to very few of them who feel that there is variation in the price, quality and

mileage.

Price Quality Service Mileage0

5

10

15

20

25

30

35

40

45

Attributes

No of respondents


TABLE-16

TABLE SHOWING WHETHER THE CUSTOMERS ARE

COMFORTABLE WITH ROYAL ENFIELD BIKES


1 Yes 98 98%

2 No 2 2%

Total 100

INTERPRETATION

From the above table it is clear that almost all the customers are comfortable with

their bikes [98%]. Thus we can conclude that majority of the customers are satisfied

with their bikes when it comes to comfort.

98%

2%

Response

YesNo


TABLE-17

TABLE SHOWING WHETHER THE CUSTOMERS

RECOMMEND THE PRODUCT TO THIER FRIENDS AND

RELATIVES


1 Yes 96 96%

2 No 4 4%

Total 100

INTERPRETATION

From the above table it is evident that the majority of the customers recommend

their product to their friends and relatives compared to very few who doesn't want to

recommend.

96%

4%

Response

YesNo


TABLE-18


TOWARDS THE AVAILABILITY OF SPARE PARTS

Sl no Availability No of respondents Percentage

1 Readily available 23 23%

2 Don't get them

readily

37 37%

3 Don't have good

spares supply

10 10%

4 Major headache 8 8%

Total 100

INTERPRETATION

From the above it can be seen that majority of the customers think that they don't get

good spares supply at proper time in service outlets or in the showroom, and there are

also customers who feel they get them readily. Customers who have witnessed some

problems because of non availability of spare parts are very few in number.

Readily available don't get them readily don't have good spares supply

major headache

23

47

22

8

AvailabiltyNo of respondents


TABLE-19


ABOUT THE RESALE VALUE OF THE ROYAL ENFIELD BIKE


1 Excellent 48 48%

2 Good 37 36%

3 Average 10 10%

4 Poor 5 5%

Total 100

INTERPRETATION

The above table indicates that majority of the customers are of the opinion that they

will get excellent and good resale value of their bike compared to very few who think

that it is average or poor.

Excellent Good Average Poor0

5

10

15

20

25

30

35

40

45

50

Attributes

No of respondents


TABLE-20

TABLE SHOWING CUSTOMERS DEGREE OF

SATISFACTION WITH RESPECT TO FEATURES OF ROYAL

ENFIELD BIKE

Sl no Features Excellent Good Average Below

average

Not

satisfied

1 Ignition 22% 46% 24% 6% 2%

2 Disc brakes 46% 36% 11% - 7%

3 Pickup 36% 46% 12% 2% 4%

4 Fuel

efficiency

14% 24% 48% 12% 2%

INTERPRETATION

From the above table it is evident that, In case of ignition majority of the

respondents think that it is good. In case of disk brakes many are of the opinion that it is

excellent. In case of pickup respondents feel it is good and lastly in case of fuel

efficiency riders have average thinking.

Ignition Disk brakes Pickup Fuel Efficiency0

10

20

30

40

50

60

Excellent

Good

Average

Below average

Not satisfied

Features


TABLE-20

TABLE SHOWING PERCEPTION LEVEL OF CUSTOMERS

WITH RESPECT TO COMPANY IMAGE OF ROYAL ENFIELD LTD

Sl no Company

prospects

Excellent Good Average Below

average

Not

satisfied

1 Technological

advancements

10% 24% 38% 22% 6%

2 Range of

products

12% 28% 52% 6% 2%

3 Advertisements 12% 8% 30% 46% 4%

4 Dealer network 8% 24% 30% 32% 6%

INTERPRETATION

The above table shows that majority of the customers hold average perception level

when it comes to company's technological advancements and range of products,

whereas number of riders also feel that the company's advertisements and dealership

network is lacking and it is below average.

Technological advancements

Range of products Advertisements Dealer Network0

10

20

30

40

50

60

Chart Title

ExcellentGoodAverageBelow averageNot satisfied

Company prospects


FINDINGS

The sample picked from the population of users of two wheelers of Royal Enfield

has thrown a new look into perception of consumers.

The findings are as follows

1) The study has shown that businessman and the students are the crunch

followed by the professionals.

2) The Royal Enfield is having a young appeal as the 62% of the consumers are

found to be below the age group of 20-30 years followed by 30-50 years.

3) Royal Enfield is placing their products in the appropriate price range. As the

people of this income bracket less than 3,60,000-7,20,000 can easily afford

this Bike.

4) Customers are not attracted to only one particular model due to the variants

available and because the Thunderbird 500/350 is the newly released models

they are fast moving now.

5) Majority of the customers directly chose Royal Enfield as their bike and

didn't even have a look at the nearest alternative bike and this shows the

loyalty of the customers towards the brand Royal Enfield.

6) 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.

7) 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.

8) 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.

9) 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.


SUGGESTIONS

Promotional campaign- The Royal Enfield ads seen on electronic and print media are

absolutely out of touch with the Indian culture and thought process. An Indian

consumer irrespective of their income level has a soft corner for traditions and

culture of India. Hence, all companies including market leaders like Hero Honda and

Bajaj capitalize on this behavior of customers and design their ad campaigns keeping

India in mind.

Weak follow up from dealerships- It was observed during the study that Royal

Enfield was quite weak in following up with prospective customers.

Measures should be taken to improve its dealership- Showrooms are very small in

size and do not reflect the quality and scale of Royal Enfield in the market.

Should improve the after sales service- During the survey it was found that Royal

Enfield is not satisfying all their customers in after sales services, employees at

dealership sometimes use harsh words and become rude to the customers, parts of

the bike are not easily available in the market. This is the major drawback in

capturing the market share so Royal Enfield should take some better steps to satisfy

and retain their customers.

Increase in customer query response- During the study it was found that dealers are

not satisfying the queries of customers and so suggested to increase customer query

response by dealers.

Youth oriented promotion- Company should focus more on younger generation as it

can increase sales and market share in Bangalore.


CONCLUSION

The study has helped Royal Enfield dealers to understand whether the

customers are satisfied or not. If not what are main reasons for dissatisfaction of

customer towards the dealer and what are the ways of improving the satisfaction level

of customer towards dealer.

We can conclude younger generation and middle age are more interested in

Royal Enfield, the buying behaviour is governed predominantly by the need for Power

and respect for the iconic Brand and users are mostly Professional Males, 20-35 years

of age, including some students.

Most of the customers are attracted to newly released Classic 350/500, also

customers are easily affording the price of Royal Enfield bikes and customers are very

loyal towards the brand Royal Enfield.

Royal Enfield should concentrate on its advertising campaign to reach the

customers, mileage of the Royal Enfield bikes is very economical and most of them

prefer to buy their bike brand new from showroom with the spare parts available in

market easily.

Royal Enfield has an excellent satisfaction level within the customer for its

power, pick up, comfort, safety and with after sales service.

It is clear that Royal Enfield checks at the complaints registered by their

customers on regular basis to maintain its brand value and entire Royal Enfield owner

are passionate Royal Enfield fans.


ANNEXURE

QUESTIONNAIRE

Respected sir /madam,

I Harshith.V, A student of MBA IV Sem of RNS institute of technology,

BANGALORE, doing a project entitled 'Consumer perception towards Royal Enfield

bikes ' in partial fulfilment for the award of master of business administration.

I therefore request you to spare a few minutes with me to fill up this

questionnaire. Any information collected during the course of survey will be kept

confidential

Name :

Contact No:

Email id:

Gender: Male Female

Occupation :

a. Student b. Professional

c. Businessman d. others

Age :

a. 20-30 years b. 30-50 years

c. 50 and above


Annual income :

a. Less than 1,20,000 b. 1,20,000-3,60,000

c.3,60,000-7,20,000 d.7,20,000 and above

1. Which model of Royal Enfield do you presently own?

a. Classic 350 b. Classic 500

c. Electra d. Thunderbird

d. Others

2. What made you to buy this model?

a. Style b. Status Symbol

c. Maintenance d. Power of bike

3. How did you come to know about it?

a. News paper b. Advertisements

c. Friends/Relatives

4. For what purpose you use your bike?

a. College b. Style

c. Office d. Others (specify)

5. What do you like most in your bike?

a. Style b. Power of bike

c. Mileage d. Maintenance

e. Others

6. How do you rate your bike among other bikes which is available?

a. Excellent b. Good

c. Average d. Poor

7. Are you satisfied with the mileage of your bike?

a. Yes b. No


8. What do you say about the maintenance of your bike?

a. Expensive b. Affordable

c. Cheap

10. Is Royal Enfield bike good on all roads?

a. Yes b. No

11. How is the appearance of your bike?


c. Average d. Poor

12. What is your comment on the price of your Royal Enfield bike?

a. Costly b. Standard

c. Economical

13. Is there any variation in what you expected?

a. Price b. Service

c. Quality d. Mileage

14. Are you comfortable with your bike?

a. Yes b. No

15. Will you recommend this product to your friends and relatives?

a. Yes b. No

16.What do you think about the availability of spare parts?

a. Readily available b. don’t get them readily

c. Don’t have good spares supply d. Major headache

17. What do you think about the resale value of your Royal Enfield bike?


c. Average d. Poor


18. Please indicate your degree of satisfaction level with the features of your 'Royal Enfield Bullet'?

Excellent Good Average Below Average

Not satisfied

1 2 3 4 5

a. Ignition :

b. Disc Brakes:

c. Pickup:

d. Fuel Efficiency:

19.Please indicate your perception level with respect to company image of 'Royal Enfield Ltd'?

Excellent Good Average Below Average

Not satisfied

1 2 3 4 5

a. Technological Advancements:

b. Range of products:

c. Advertisements:

d. Dealer Network:

20. Given a chance which Royal Enfield bike will you purchase?

21. Do you like to give any suggestions regarding Royal Enfield bike?


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.royalenfield.com

www.wikipedia.org

www.enfieldmotorcycles.com


http://www.wikipedia.org/

http://www.royalenfield.com/

royal enfield project report

Documents

george townsend

european community

rear swing

low entry

royal enfield

vehicle type

annual income

good spares