Comparitive Study of Royal Enfield
Comparitive Study of Royal Enfield
Comparitive Study of Royal Enfield
INTRODUCTION
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
integrated process through which companies build strong customer relationships and create
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
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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,
Contemporary approaches
Recent approaches in marketing include relationship marketing with focus on the customer,
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
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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
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a
market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that there
is no reason to spend R&D funds developing products that people will not buy. History attests to
many products that were commercial failures in spite of being technological breakthroughs.
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
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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
Organizational orientation
In this sense, a firm's marketing department is often seen as of prime importance within the
would be used to guide the actions of other departments within the firm. As an example, a
marketing department could ascertain (via marketing research) that consumers desired a new type
of product, or a new usage for an existing product. With this in mind, the marketing department
would inform the R&D department to create a prototype of a product/service based on consumers'
new desires.
The production department would then start to manufacture the product, while the marketing
department would focus on the promotion, distribution, pricing, etc. of the product. Additionally,
a firm's finance department would be consulted, with respect to securing appropriate funding for
the development, production and promotion of the product. Inter-departmental conflicts may
occur, should a firm adhere to the marketing orientation. Production may oppose the installation,
support and servicing of new capital stock, which may be needed to manufacture a new product.
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Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow
Marketing research
Marketing research involves conducting research to support marketing activities, and the statistical
interpretation of data into information. This information is then used by managers to plan
marketing activities, gauge the nature of a firm's marketing environment and attain information
from suppliers. Marketing researchers use statistical methods such as quantitative research,
qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations, frequency
distributions, poison distributions, binomial distributions, etc. to interpret their findings and
convert data into information. The marketing research process spans a number of stages, including
the definition of a problem, development of a research plan, collection and interpretation of data
and disseminating information formally in the form of a report. The task of marketing research is
to provide management with relevant, accurate, reliable, valid, and current information. A
distinction should be made between marketing research and market research. Market research
pertains to research in a given market. As an example, a firm may conduct research in a target
market, after selecting a suitable market segment. In contrast, marketing research relates to all
research conducted within marketing. Thus, market research is a subset of marketing research.
Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar
needs and wants. For instance, Kellogg's cereals, Fro sites are marketed to children. Crunchy Nut
Cornflakes are marketed to adults. Both goods denote two products which are marketed to two
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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.
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
Secondary research (also referred to as desk research), initially conducted for one purpose,
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
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,
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respectively. The appropriateness of each mode of research depends on whether data can be
Conclusive research, for the purpose of deriving a conclusion via a research process.
Promotion (marketing)
Promotion is one of the four elements of marketing mix (product, price, promotion, distribution).
It is the communication link between sellers and buyers for the purpose of influencing, informing,
or persuading a potential buyer's purchasing decision. Fundamentally, however there are three
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
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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
CUSTOMER SATISFACTION
Customer satisfaction, a business term, is a measure of how products and services supplied by a
company meet or surpass customer expectation. Customer satisfaction is defined as "the number
of customers, or percentage of total customers, whose reported experience with a firm, its products,
or its services (ratings) exceeds specified satisfaction goals." It is seen as a key performance
indicator within business and is part of the four of a Balanced Scorecard. In a competitive
marketplace where businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy. Within
organizations, customer satisfaction ratings can have powerful effects. They focus employees on
the importance of fulfilling customers’ expectations. Furthermore, when these ratings dip, they
warn of problems that can affect sales and profitability. These metrics quantify an important
dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is
both free and highly effective. In researching satisfaction, firms generally ask customers whether
their product or service has met or exceeded expectations. Thus, expectations are a key factor
behind satisfaction. When customers have high expectations and the reality falls short, they will
be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury
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resort, for example, might receive a lower satisfaction rating than a budget motel—even though
INDUSTRY PROFILE
The automobile industry is one of the biggest industries in the world. Being a major revenue and
job generating sector it drives the economies of some of the superpowers of the world. In India the
automobile industry has grown by leaps and bounds since the advent of the liberalization era the
automobile industry and especially the two wheeler segment has grown by leaps and bounds.
The liberalization has done away with primitive and prohibitive practices of licensing and
restricted foreign investment have been done away with. The result of which was the entry of
foreign players into the Indian market. The two wheeler segment was largely dominated by
Automobile Products of India (API) and Enfield in the 50s. Later on towards the end of the 50s
Bajaj Autos began importing Vespa scooters from Italian company Piaggio. In the following
decades the automobile industry in India was mainly dominated by scooters with API and later
Bajaj dominating the market. There were very few products and choices available as far as
motorcycle is concerned and Enfield bullet and Rajdoot dominated the market. The 80s saw the
entry of Japanese companies in the Indian market with the opening up of the market to foreign
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companies. Hero Honda and TVS Suzuki are companies formed in this era of market reform. The
market was still predominantly scooter dominated and Bajaj and LML were the leading brands
The Japanese companies not only collaborated with Indian companies to produce the already
existing products but also brought in new technology as a result of which the ever conquering
100cc bikes which were extremely fuel efficient with 4 stroke engines were launched in India.
These proved to be highly successful as they provided a cheap and affordable means of personal
transport to all those who could not buy a car. The flourishing middle class took a great liking for
these bikes and the bike sales in India began to grow exponentially year on year leading to Hero
Honda becoming the leader in the two wheeler industry in India and the largest producer of two
wheelers in the world. The post 90s era was the era of liberalization and weakening of restrictive
measures. The government went on an overdrive to support the industry and all FDI regulations
and licensing was abolished. 100% FDI was allowed in the automobile industry and the excise
duty was also considerably reduced to its current level of 12% on two wheelers. All these factors
combined with the rising fuel prices, the increasing dispensable incomes of households, easy
access to finance, etc. have led to two wheeler industry becoming the backbone of the automobile
industry in India. The two wheeler industry in India forms a major chunk of the automobiles
produced in India. According to Society of Indian Automobile Manufacturers statistics for the year
2009 – 2010, two – wheelers comprise 76.49% of market share among the vehicles produced in
India. The production share of two wheelers is quite similar to the market share. The two wheeler
industry comprises around 74% of the total automobiles produced in India. The SIAM data for the
year 2009-10 states that 8,418,626 two wheelers were produced during the year against a total of
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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
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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1.2 OBJECTIVE OF STUDY
1. For developing skills in report writing through various techniques like data
representing, presentation, data analysis.
10. To know about Royal Enfield’s strategy to tackle its competitors strategies.
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1.3 SCOPE OF STUDY
1. To analyse the sales the royal enfield across India. From data collected from
secondary sources
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
born.
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INDUSTRY Motorcycles, Lawnmowers
DEFUNCT 1971
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.
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ORGANISATIONAL STRUCTURE
GENERAL MANAGER
(Proprietor)
SWOT ANALYSIS
Sales
Representative
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GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES
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SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY
STRENGTHS WEAKNESSES
OPPURTUNITIES THREATS
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SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA
STRENGTHS WEAKNESSSES
OPPURTUNITIES THREATS
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Profile of the Products
better sitting for superior riding. This has been the classical offering from Royal Enfield and the
engineering and the design has remained unchanged over the years. It has remained the flagship
product with the other products being perceived more as derivatives of this motorcycle rather
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Royal Enfield Bullet 500 (Cast Iron)
transmission, double leading shoe front brake and was touted as the powerhouse model with a
whopping 27 bhp output. While the bike looked mostly similar to the Standard 350cc offering, its
bigger engine made it a more potent vehicle to have on long rides.Royal Enfield Bullet Electra 4S
This paved the way for the newer bikes from Royal Enfield which now have Digital TCI as a a part
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Royal Enfield Lightning 535
world. The bike received limited acceptance amongst users and was discontinued after 2006 but
it succeeded in rebuilding the power-bike image of Royal Enfield amongst the enthusiasts.
shift, they moved to a left-hand side 5-speed gear shift. Disc brakes also made an entry, with the
280mm disc being the largest in the country. This has been one of the most successful models
from Royal Enfield and was to a large extent responsible for the revival of the brand during the
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Machismo is Royal Enfield’s “chrome
the result of Royal Enfield’s collaboration with an Austrian Engine manufacturer, AVL.
developed into a strong marquee itself and continues to remain a brand name despite
engineering changes that went into it. It started as a 350cc AVL Single-Spark Engine. Today the
Thunderbird Twin spark is a 350cc Unit Construction Twin-spark Engine with about 20 bhp
output.
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In 2008, Royal Enfield unveiled its latest offerings – the Classic 350 and the Classic 500.Styled in
amongst users for the lower ride height, the greater power and above all, the vintage feel of the
bike.
The automobile industry is one of the biggest industries in the world. Being a major
revenue and job generating sector it drives the economies of some of the
superpowers of the world. In India the automobile industry has grown by leaps and
bounds since the advent of the liberalization era the automobile industry and
especially the two wheeler segment has grown by leaps and bounds.
The liberalization has done away with primitive and prohibitive practices of
licensing and restricted foreign investment have been done away with. The result of
23 | P a g e
which was the entry of foreign players into the Indian market. The two wheeler
segment was largely dominated by Automobile Products of India (API) and Enfield
in the 50s. Later on towards the end of the 50s Bajaj Autos began importing Vespa
scooters from Italian company Piaggio. In the following decades the automobile
industry in India was mainly dominated by scooters with API and later Bajaj
dominating the market. There were very few products and choices available as far
as motorcycle is concerned and Enfield bullet and Rajdoot dominated the market.
The 80s saw the entry of Japanese companies in the Indian market with the opening
up of the market to foreign companies. Hero Honda and TVS Suzuki are companies
formed in this era of market reform. The market was still predominantly scooter
dominated and Bajaj and LML were the leading brands producing the products at
that time.
The Japanese companies not only collaborated with Indian companies to produce
the already existing products but also brought in new technology as a result of which
the ever conquering 100cc bikes which were extremely fuel efficient with 4 stroke
provided a cheap and affordable means of personal transport to all those who could
not buy a car. The flourishing middle class took a great liking for these bikes and the
bike sales in India began to grow exponentially year on year leading to Hero Honda
becoming the leader in the two wheeler industry in India and the largest producer of
24 | P a g e
two wheelers in the world. The post 90s era was the era of liberalization and
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
Manufacturers statistics for the year 2009 – 2010, two – wheelers comprise 76.49%
of market share among the vehicles produced in India. The production share of two
wheelers is quite similar to the market share. The two wheeler industry comprises
around 74% of the total automobiles produced in India. The SIAM data for the year
2009-10 states that 8,418,626 two wheelers were produced during the year against a
India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South
Korea and Thailand. India’s automobile sector consists of the passenger cars and
utility vehicles, commercial vehicle, two wheelers and tractors segment. The total
market size of the auto sector in India is approximately Rs 540 billion and has been
growing at around 8 percent per annum for the last few years. Since the last four to
25 | P a g e
five years, the two wheelers segment has driven the overall volume growth on
account of the spurt in the sales of motorcycles. However, lately the passenger cars
and commercial vehicles segment has also seen a good growth due to high discounts,
India, Ford India Ltd., Eicher Motors, Bajaj Auto, Daewoo Motors India, Hero
Honda Motors, Hindustan Motors, Hyundai Motor India Ltd., Royal Enfield Motors,
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.
Ever since the old Lambretta scooter was replaced with the flurry of vibrant two
wheeler models, Indian two wheeler industry has seen a phenomenal change in the
way they perceive the Indian market. Two wheeler manufacturers are now
competing in an ever growing consumer market by bringing out new products and
features. The country has now grown into the second largest producer of two
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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
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
advertisements which showed middle aged females riding a Bajaj Chetak scooter.
A recent trend in the industry has been electric vehicles, which mostly leverage on
their eco-friendliness and low operating costs, but is still not accepted well due to
the lack of reputation of the manufacturers and lack of trust on technology, which is
still being perceived in the nascent stages, especially battery and inverters which
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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
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.
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
Mission Plan with an aim to achieve domestic vehicle market of $82-119bn by 2016
and $12bn export of vehicles. It also aimed at making India 7th largest vehicle
producing country in the world by 2016. And, we have already achieved this
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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-
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
the top 5 export destinations in this segment, Colombia experienced the highest
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CHAPTER 2
REVIEW OF LITERATURE
LITERATURE REVIEW
(Preusser et al., 1995) Motorcycles, which are a small subset of all motor vehicle, are
greatly overrepresented in fatal motor vehicle accidents. In the United States, the death rate
per registered motorcycle (59 per 100,000) is approximately three times the death rate per
registered passenger car (17 per 100,000). Death rate calculated per vehicle, however, do
not take into account the substantially lower mileage travelled by motorcyclists. Per mile
travelled, the death rate for motorcycles is estimated to be 22 times higher than the
In an earlier study, Wulf et al. (1989) estimated the death rate for motorcycle riders of
about 35 per 100 million miles of travel compared with an overall vehicle death rate of
2.57 per 100 million miles. In Great Britain in 2002, the “Killed or Seriously Injured” (KSI)
casualty rate was 147 per 100 million vehicle kilometer for two wheeled motor vehicle,
whilst for car users the rate was 5 per 100 million vehicle kilometers (DfT, 2003a). Besides
the higher death rate, motorcyclists are more likely to be injured when involved in an
accident.
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Horswill and Helman (2001a) looked at 399 injury accidents in the UK (1999 data) in
which either a motorcycle or car was involved in a head on collision with a car (that is,
both types of vehicle collided with the same type of object in the same way). Around 97%
of motorcyclists were injured or killed in these collisions compared with 50.5% of car
drivers (in accidents where the car driver or motorcyclists was not injured, the injured
parties were either passengers or the occupants of the other vehicle). To take into account
the possibility that motorcycle/car collisions may occur at higher speeds than car/car
collisions, they assessed a sample of 109 motorcycle/car head on collisions (that is, the
impact speed was the same for the car and the motorcycle) from the same dataset, and
found that the motorcyclists involved were 95.4% likely to be injured while the car drivers
were 0.9% likely to be injured. The much higher injury rate confirmed that motorcyclists
are more physically vulnerable than car drivers. Overall, the casualty rate (all injury types)
is 556 per 100 million vehicle kilometer for two wheeled motor vehicle, compared to 50
for car users in Britain 2002. The number of active motorcyclists could be estimated in
principle from DVLA information on the number of motorcyclist licences. The age and sex
However, Broughton (1987) found that this significantly overestimated the number of
active motorcyclists since large proportions of those with licences do not ride regularly. A
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motorcycles licensed, as discussed in the previous section. One significant drawback of
this measure is that no demographic information of the motorcyclists (age, sex, area, etc.)
is available. Another problem of this measure is that some owners fail to license their
vehicle to avoid paying Vehicle Excise Duty and some owners may own more than one
bike. An alternative source of information is the National Travel Survey, which collects
data on the travel habits of around 3,200 households (around 8,000 individuals) per year.
Individuals complete a seven-day (consecutive days) travel diary recording details of travel
such as the purpose of the journey, the method, the distance traveled and the time of day
demographics, motorcycle information (such as engine size) with motorcycle use. Its major
drawback is the small sample of the respondents who ride motorcycles (in line with the
small number of active motorcyclists). To get the necessary level of details, several years
of data has to be aggregated and thus mask changes over time (Elliott et al., 2003).
(Thomson 1980; Wulf et al., 1989; RSC, 1992) One comprehensive study of motorcyclist
and motorcycle use based on the NTS data is reported in DfT (2001). The period of 1992
to 1999 is covered in the analysis, as the sample sizes are too small for a shorter period of
time. The key results cover motorcycle travel by area, journey purpose, age and sex as well
as motorcycle size. Motorcycle crash studies provide ample evidence that motorcyclists
are not easily seen by drivers of other vehicle, particularly when traffic is heavy and the
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that they did not see the motorcycles and their riders at all, or did not see them in time to
avoid the crash. In roughly half of the cases in which motor-vehicle drivers failed to detect
a motorcycle in time to avoid a crash, other obstacles were present, either within the
vehicle, as part of the landscape, or in passing traffic, that interfered with the driver’s line
of sight (Hurt et al., 1981; Bednar et al. 2000). The ability of other road users to see and
notice the motorcycle is termed conspicuity. Because motorcycles are less conspicuous
than passenger cars or trucks, they are more difficult to detect and their approaching speed
is more difficult to determine, and this largely contributes to the high accident rate of
motorcycles.
Hancock et al. (1990) described two factors that lead to drivers failing to detect
motorcyclists in the first place: sensory conspicuity (the physical qualities of the
approaching vehicle that distinguish it from its background) and cognitive conspicuity (the
degree to which the observer’s experience or intentions affects the salience of the
approaching vehicle). Motorcycles have poor sensory conspicuity (due to the smaller size
of the motorcycle) but they also have poor cognitive conspicuity (they are less frequent
According to RSC (1992), size is one of the important factors influencing conspicuity.
The face-on silhouette area of motorcycle is 30-40% of a passenger car but this is enlarged,
on the one hand, by fairings or, on the other, by changing the angle of approach. Under
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daytime ambient light conditions, even motorcycles are big enough to be seen far enough
away to allow execution of avoidance manoeuvres when they are in a driver's visual field.
However, motorcycles’ small size increases the likelihood that motorcycles will be
obscured by traffic and their detection may rely on their being seen in a gap a long distance
away.
Horswill and Helman (2001) Moreover, people identify objects on the basis of their size,
shape, colour and motion. At a distance motorcycles are similar to pedestrians or bicycles
except for their speed. Size is related to judgment of speed and distance so that the speed
difference between motorcycles and other road users may not always be enough to enable
drivers to discriminate between them at long distances. These findings are supported by
him. They found that people waiting to pull out at a junction have problems detecting when
a motorcycle will Literature Review on Motorcycle Collision reach them. People judged
an oncoming motorcycle would reach them later than an oncoming car – despite the actual
time to arrival being exactly the same. This is likely to be due to the smaller size of
motorcycles, since the increase in their size as they approach – their rate of looming - is
Brooks and Guppy (1990), The lower frequency of motorcycles on the road is another
factor that causes drivers of other vehicle to overlook motorcyclists and subsequently
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violate their right-of way. Many drivers do not anticipate routine encounters with
Hurt et al. (1981) found that drivers involved in crashes with motorcycles were more likely
to be unfamiliar with motorcycles. they shows drivers who also ride motorcycles and those
with family members or close friends who ride are more likely to observe motorcyclists
and less likely to collide with them. This indicates that drivers can see motorcyclists, whom
they might otherwise overlook, if they mentally train themselves to do so. Some experts
adduce an "expectancy" phenomenon. They follow research on vigilance and say that road
users become conditioned to respond more to the visual cues provided by other vehicle
than those of motorcycles because of their greater size and frequency on the road.
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CHAPTER 3
REASEARCH METHODOLOGY
The research will be carried out in various phases that constitute an approach of
working from whole to part. It includes subsequent phases trying to go deeper into the user’s
psyche and develop a thorough understanding of what a user looks for while buying a bike.
The first phase is completely internal where it is stormed over the most effective route of action,
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
The information relevant for study was drawn from Primary data collected through survey method,
which alone was not sufficient. Hence Secondary data was collected to study successfully.
Primary data- In order to find out customer satisfaction regarding bikes of Royal Enfield
Primary Data was collected by personally visiting the dealerships and showrooms. With
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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
SAMPLE DESIGN
The research was carried out in various phases that constituted an approach of working
from whole to part. It included subsequent phases trying to go deeper into the user’s psyche and
develop a thorough understanding of what the user looks for while buying a bike. In order to get a
perspective from non-Bullet riders as to what are the reasons for not choosing a Bullet, I
administered the same questionnaire to riders who used other motorcycles keeping in mind the
time and cost constraints. For the customer satisfaction study a sample of 75 persons was chosen
from the in Bangalore city. The sample was judgmental and methodology was convenient random
sampling.
Size of Sample 75
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Sampling technique Convenient Random Sampling method
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
From the set of inferences and interpretation, conclusion have been drawn which is
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CHAPTER 4
Data Reduction, Presentation, Analysis and Interpretation
TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE
25-29 19 26%
30-34 14 18%
Above 35 12 16%
TOTAL 75 100%
Analysis
From the above table it is clear that 40% of the respondents are aged between 20 and 24, 26%
between 25 and 29, 18% between 30 and 34 and only 16% aged above 35 years.
Interpretation
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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
GRAPH No.1
16%
40%
18%
20-24
26% 25-29
30-34
Above 35
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TABLE No.2
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER
FEMALE 6 8%
TOTAL 75 100%
Analysis
From the above table it is clear that 92% of respondents were male and female respondents
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
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GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER
8%
Male
Female
92%
TABLE No.3
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS
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OCCUPATION NO.OF PERCENTAGE
RESPONDENTS
STUDENT 33 44%
GOVERNMENT SERVICE 5 6%
EX-SERVICEMEN 3 4%
PROFESSIONAL 21 28%
SELF-EMPLOYED 13 18%
TOTAL 75 100%
Analysis
From the above table it is clear that 44% of the respondents were students pursuing their graduation
or post graduation studies and 28% were professionals. 18% of the respondents were self
Interpretation
It is clear that users are mostly Professional males, 20-35 years of age including some students
GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS
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45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
No. of Respondents
TABLE No.4
TABLE SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS
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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%
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
Interpretation
It shows that Royal Enfield is placing their products in the appropriate and reasonable price range
and the people of income bracket less than 1,20,000 can easily afford this Bike.
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GRAPH No.4
GRAPH SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS
16%
18%
52%
14%
Less than 1,20,000
1,20,001-3,60,000
3,60,001-7,20,000
Above 7,20,000
TABLE No.5
TABLE SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS
PRESENTLY OWN
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MODEL NO. OF PERCENTAGE
RESPONDENTS
BULLET 500 11 14%
MACHISMO 500 6 8%
OTHERS 3 4%
TOTAL 75 100%
Analysis
From the above it is clear that 14% of the respondents own Bullet 500, 10% of them own Thunder
Bird, 20% of them own Bullet Electra, 8% of them own Machismo 500, 21% of them own Bullet
350 and 23% of them own Classic 500/350.
Interpretation
It clearly shows that customers are not attracted to only one particular model due to the variants
available and because the Classic 500/350 are the newly released models they are fast moving
now.
GRAPH No.5
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS
PRESENTLY OWN
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18
16
14
12
10
6
Bullet 500
4
Thunder Bird
2 Bullet Electra
Machismo 500
0
Bullet 350
No. of
Respondents Classic 500/350
Others
TABLE No.6
TABLE SHOWING- THE PURCHASING WAY OF THE CUSTOMERS
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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
GRAPH No.6
GRAPH SHOWING- THE PURCHASING WAY OF THE CUSTOMERS
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60
50
40
30
20
10
0
CASH LOAN
No.of Respondents 54 21
TABLE No.7
TABLE SHOWING- THE NO OF RESPONDENTS CONSIDERING OTHER
MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD BIKE
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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
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
GRAPH No.7
GRAPH SHOWING- THE NO OF RESPONDENTS CONSIDERING OTHER
MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD BIKE
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64%
70%
36%
60%
50%
40%
30%
20%
10%
0%
YES
NO
No. of Respondents
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TABLE No.8
TABLE SHOWING- THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE
BUYING THEIR ROYAL ENFIELD BIKE
MEDIA NO. OF PERCENTAGE
RESPONDENTS
NEWSPAPERS 6 8%
MAGAZINES 24 32%
FRIENDS 11 14%
ROADSHOW 7 10%
TV ADDS 5 6%
WEBSITE/BLOGS 15 20%
SHOWROOM 7 10%
TOTAL 75 100%
Analysis
As we can see here the major promotional tool which is influencing the customers is Magazines
and Website which is around 32% and 20% respectively, after that the source of awareness among
customers is a mixed response where in 14% from friends, 10% each from road shows and
showroom, finally newspapers consists 8% and 6% from Television adds which is very poor.
Interpretation
It clearly shows that Advertisements are rarely recalled and are highly ineffective amongst non-
Bullet riders. It’s clear that Royal Enfield should concentrate on its advertising campaign to reach
the customers.
GRAPH No.8
GRAPH SHOWING- THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE
BUYING THEIR ROYAL ENFIELD BIKE
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35%
30%
25%
20%
15%
10%
5%
0%
friends and
newspaper magazines roadshow tv adds website showroom
relations
Respondents 8% 32% 14% 10% 6% 20% 10%
TABLE No.9
TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASE OF
BIKE
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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
GRAPH No.9
GRAPH SHOWING-THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASE OF
BIKE
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30
25
20
15
10
0
45km/lt 40-45 35-40 30-35 Below 30
No. of Respondents 5 16 26 18 10
TABLE No.10
TABLE SHOWING- THE BREAKDOWN OF BIKES SINCE PURCHASE OF VEHICLE
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VERY OFTEN 8 10%
RARELY 19 26%
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
Interpretation
It is clear that most of the Royal Enfield bikes doesn’t breakdown at all and it is not problematic
GRAPH No.10
GRAPH SHOWING- THE BREAKDOWN OF BIKES SINCE PURCHASE OF
VEHICLE
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10%
26%
64%
Very often
Rarely
Not at all
TABLE No.11
TABLE SHOWING- THE PLACE OF PURCHASE OF ROYAL ENFIELD BIKES &
THEIR SATISFACTION LEVEL TOWARDS IT
PLACE OF NO. OF PERCENTAGE
PURCHASE RESPONDENTS
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SHOWROOM 48 64%
DIRECT SECOND HAND 22 30%
USED VEHICLES 5 6%
DEALERSHIP
TOTAL 75 100%
Analysis
64% of the Bullet riders prefer to buy their bike from showroom only and 30% may buy it Second
hand dircetly. But none of them buys the bike through brokers which shows that reliability of an
outside party is low while making the purchase decision among the Bullet riders.Also 76% of
respondents are very much satisfied with the place of purchase of their bike and 24% are not at all
satisfied.
Interpretation
It is clear that most of the respondents prefer to buy their bike brand new from showroom only
and majority of the customers are very much satisfied with the place of purchase of their Royal
Enfield bike. This also shows there is more demand for new bikes.
GRAPH No.11
GRAPH SHOWING- THE PLACE OF PURCHASE OF ROYAL ENFIELD BIKES AND
THEIR SATISFACTION RESPONSE TOWARDS IT
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48 No. pf Respondents
50
45
40
35
30 22
25
20
15
5
10
5
0
Showroom Direct second hand Used vehicles
dealership
Point of satisfaction
24%
Satisfied
Not Satisfied
76%
TABLE No.12
TABLE SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE MARKET
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AVAILABILITY NO.OF PERCENTAGE
RESPONDENTS
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
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6%
16%
10%
68%
Readily Available
Don't get them readily
Don't have good spares supply
Major headache
TABLE No.13
TABLE SHOWING- THE MAJOR PROBLEMS AFTER PURCHASING ROYAL
ENFIELD BIKE
PROBLEMS NO. OF PERCENTAGE
RESPONDENTS
HIGH MAINTENANCE 11 14%
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HIGH PRICE 15 20%
NOISY VEHICLE 3 4%
NO PROBLEM 31 42%
TOTAL 75 100%
Analysis
Maximum number of people (42%) described that there is no problem with the bike after purchase,
20% had an issue with the price range, third biggest problem was 14% of them felt high
maintenance was required for the bike, only 4% of them felt it was noisy vehicle and while 10%
of respondents each refrained because of the low mileage and the poor after sales service of Bullet.
Interpretation
It is clear that majority of the people who choose Royal Enfield as their bike don’t have any
problems or issues with their bike’s performance.
GRAPH No.13
GRAPH SHOWING-THE MAJOR PROBLEMS AFTER PURCHASING ROYAL
ENFIELD BIKE
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14%
10%
42%
20%
High maintainance
4% Low mileage
10%
Noisy vehicle
TABLE NO.14
TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR
SATISFACTION LEVEL WITH RESPECT TO POWER AND PICK UP
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 4 6%
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AVERAGE 8 10%
GOOD 20 26%
EXCELLENT 43 58%
TOTAL 75 100%
Analysis
From the above table it is clear that 6% of the respondents rated very poor and they were not at all
satisfied, 10% of them rated average, 26% of them rated good and maximum number of
respondents i.e. 58% rated excellent and these respondents were very much satisfied with their
bikes power and pick up.
Interpretation
It is clear that majority of the respondents are satisfied with their bikes power and pick up. This
shows Royal Enfield has an excellent satisfaction level within the customer.
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CHAPTER 5
CONCLUSION
The study has helped Royal Enfield dealers to understand whether the customers are
satisfied or not. If not what are main reasons for dissatisfaction of customer towards the
dealer and what are the ways of improving the satisfaction level of customer towards
dealer.
We can conclude younger generation and middle age are more interested in Royal Enfield,
the buying behavior is governed predominantly by the need for Power and respect for the
iconic Brand and users are mostly Professional Males, 20-35 years of age, including some
students. Most of the customers are attracted to newly released Classic 350/500, also
customers are easily affording the price of Royal Enfield bikes and customers are very
Royal Enfield should concentrate on its advertising campaign to reach the customers,
mileage of the Royal Enfield bikes is very economical and most of them prefer to buy their
bike brand new from showroom with the spare parts available in market easily.
Royal Enfield has an excellent satisfaction level within the customer for its power, pick up,
comfort, safety.
It is clear that Royal Enfield checks at the complaints registered by their customers on
regular basis to maintain its brand value and entire Royal Enfield owner are passionate
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BIBLIOGRAPHY
Books Referred
Magazines Referred
Enthusiasts.
Websites Referred
www.google.com
www.royalenfield.com
www.wikipedia.org
www.enfieldmotorcycles.com
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