Marketing Research Report: BY-PRIYANKA SHAHI (18609033) VARUN JAIN (18609012)

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MARKETING

RESEARCH REPORT

ROYAL ENFIELD
BY- PRIYANKA SHAHI (18609033)

VARUN JAIN (18609012)


CONTENT
Topics Page no.
 MARKETING RESARCH DEFINITION 3
 HISTORY OF ROYAL ENFIELD 4-6
 ROYAL ENFIELD PRODUCTS 7
 MARKETING MIX OF ROYAL ENFIELD 8-10
 QUESTIONAIRE 11-14
 DATA ANALYSIS 15
 DEMOGRAPHIC REPRESENTATION 16-23
 CONCLUSION 24
 LIMITATION 25
 BIBLIOGRAPHY 26

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MARKETING RESARCH

Market research is any organized effort to gather


information about target markets or customers. It is a very
important component of business strategy. The term is commonly
interchanged with marketing research; however, expert
practitioners may wish to draw a distinction, in
that marketing research is concerned specifically about marketing
processes, while market research is concerned specifically with
markets.
Market research is one of the main factors used in maintaining
competitiveness over competitors. Market research provides
important information to identify and analyze the market need,
market size and competition. Market-research techniques
encompass both qualitative techniques such as focus groups, in-
depth interviews, and ethnography, as well as quantitative
techniques such as customer surveys, and analysis of secondary
data.
Market research, which includes social and opinion research, is
the systematic gathering and interpretation of information about
individuals or organizations using statistical and analytical
methods and techniques of the applied social sciences to gain
insight or support decision making.

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Royal Enfield
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.

THE EARLY YEARS


In 1909 Royal Enfield surprised the motorcycling world by
introducing a small Motorcycle with a 2 ¼ HP V twin Motosacoche
engine of Swiss origin. In 1911 the next model was powered by a 2
¾ 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’s own engine which now had the standardised Enfield paint
scheme of black enamelled parts and green tank with gold trim.

BETWEEN THE WARS


At the time of the outbreak of WW 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.

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THE INDIA CONNECTION
Royal Enfield motorcycles were being sold in India ever since
1949. In 1955, the Indian government started looking for a suitable
motorcycle for its police forces and the army for patrolling duties
on the country's border. The Bullet 350 was chosen as the most
suitable bike for the job. The Indian government ordered 800 of
these 350 cc motorcycles, an enormous order for that time. Thus In
1955, the Redditch Company partnered with Madras Motors in
India to form what was called 'Enfield India' to assemble these 350
cc Bullet motorcycle under licence in erstwhile madras (Now called
Chennai). As per their agreement Madras Motors owned the
majority (over 50%) of shares in the company. In 1957 tooling
equipment was also sold to Enfield India so that they could
manufacture components and start full-fledged production. The
Enfield Bullet dominated the Indian highways and with each
passing year its popularity kept rising

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 Governm ent 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.

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

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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’s 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 proce ss
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.

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, 250 dealers in all major cities
and towns, and over 200 Authorised Service Centres. 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.

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PRODUCTS OF ROYAL ENFIELD

 Classic 350
 Bullet 350
 Thunderbird 350
 Bullet ES (Electra)
 Classic 500
 Himalayan
 Thunderbird 500
 Bullet 500
 Thunderbird X
 Continental GT
 Interceptor

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Marketing Mix Of Royal Enfield

Product in the Marketing Mix Of Royal Enfield :


Royal Enfield is associated with manufacturing and marketing of
motorcycles as it deals in the automobile sector. It started
its operations as a manufacturer of motorcycles for Indian Army.
It is also involved in producing lawnmowers, stationary engines,
bicycles and rifles. Some of its well-known models are as follows-

Standard Street

 Bullet Electra 5S
 Bullet 350
 Bullet Machismo 500

Retro Street

 Classic 500
 Classic Battle Green
 Classic Chrome
 Classic Squadron Blue
 Classic 350
 Classic Desert Storm

Cruiser

 Thunderbird 500
 Thunderbird 300

Café Racer

 Continental GT

Royal Enfield Himalayan

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Place in the Marketing Mix Of Royal Enfield :
Royal Enfield is an Indian company with its headquarters base at
Chennai in Tamil Nadu. It has spread its product presence to India
as well as several international markets in more than fifty
countries like Spain, Switzerland, Singapore, Netherlands, Russia,
Malaysia, Korea, Canada, Brazil, France, Germany, Italy, United
Kingdom, Japan, Argentina, Australia and the United States. At its
onset company imported kits for 350cc bikes from the United
Kingdom and assembled them in its plant at Chennai. A new
manufacturing plant was opened at Oragadam in Chennai by the
year 2013 and its factory located at Tiruvottiyur became a
secondary production plant that continued with its
manufacturing of several models and engines.

In the year 2015 company established a dealership and its


headquarters for the North American division at Milwaukee in
Wisconsin. It started its retail operations in Indonesia in the year
2015, August. Royal Enfield has a strong distribution network that
includes services of dealers and stockists so that it reaches
consumer markets easily. Its channel in India includes 394
dealership outlets spread over every Indian state and three Union
territories.

Price in the Marketing Mix Of Royal Enfield :


Royal Enfield has the distinction of being an iconic company as it
is one of the oldest in the field of two-wheelers. It belongs to the
luxury segment and has become a status symbol to motorcycle
lovers. Royal Enfield has targeted bike adventurers and youth’s
belonging to a middle-aged group as its target customers that
believe in quality over pricing at any given time. It has adopted
a premium pricing policy for its high-quality products. The
company offers a powerful and stylish product with an
established and high-profile brand name and hence its target

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customers do not hesitate in making a purchase irrespective of
high prices.

Promotions in the Marketing Mix Of Royal


Enfield :
Royal Enfield has the distinction of being the first two-wheeler
manufacturing company to obtain WVTA certificate for meeting
norms and standards set up by European Community. It has
adopted several promotional policies to market its products
successfully in the consumer market. The company has launched
innovative ad campaigns with help of electronic and print media.
Its ads are viewed via television, magazines, newspapers and
billboards. Royal Enfield has also launched brand
awareness campaigns at social media portals
like Facebook, Twitter and YouTube. It takes part in several
shows to increase its brand visibility.

It revealed its custom bikes in Biarritz, France at Wheels and


Waves custom bike show. Royal Enfield has been a recipient of
several accolades and awards in recognition of its works. It won
Business Standard Best Company of the Year 2015 and has even
been hailed by previous President Barack Obama as one of the
best bikes he had come across. One of its popular taglines is Made
like a gun, goes like a bullet.

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QUESTIONNAIRE

RESPONDENT INFORMATION

NAME:

1. AGE:

2. GENDER: MALE FEMALE

3. OCCUPATION:

Professional Government service

Student Self Employed Other

4. ANNUAL INCOME:

Less than 1,20,000 1,20,000 – 3,60,000

3,60,000 – 7,20,000 Above 7,20,000

5. Which model do you prefer or have?

Bullet 500 ThunderBird Himalyan

Bullet Electra Bullet 350

Classic 350/500 Other

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6. How did you purchase the bike?

Cash Loan

7. Did you consider other motorcycles while buying the R.E bike?

YES NO

* If yes which bike did you compare with?

Bike CC

8. Please specify your source of awareness of R.E while buying your


bike?

Newspaper Road shows Website

Magazine TV Adds Others

Friends Showroom

9. Frequency of breakdown of your bike?

Very Often Rarely Not at all

10. How about the availability of spare parts?

Readily Available Don’t get them readily

Don’t have good pare supply Major headache

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11. Which place did you prefer to purchase your R.E bike?

Showroom Direct Second Hand

Used Vehicle Dealership

* Are you satisfied purchasing there?

Yes No

12. Any major problem after buying R.E bike?

High Maintenance No Problem

Poor After Sale Service High Cost

Noisy Low Mileage

13. Are you satisfied with quality of bike?

Yes Can be improved No

14. How many stars for R.E bikes?

Good Poor

Excellent

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15. What do you think is the major barrier for not purchasing Royal
Enfield bikes by non-bullet riders?

High Maintenance Poor After Sale Service

High Price Poor Mileage

Poor Promotion Noisy Vehicles

16. Where do you service your bike?

Showroom Nearby Garage

Self Service

ANY SUGGESTIONS

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Data Analysis
OCCUPATION

 STUDENT 45%
 GOVERNMENT SERVICE 3%
 EX- SERVICEMEN 3%
 PROFESSIONAL 31%
 SELF EMPLOYED 18%

GENDER
 MALE 92%
 FEMALE 8%

ANNUAL INCOME
 Less than 1,20,000 53%
 1,20,000 – 3,59,999 13%
 3,60,000 – 7,19,999 18%
 More than 7,20,000 16%

BIKE OWNERSHIP
 BULLET RIDERS 50%
 NON BULLET RIDER 50%

AGE
 20-24 40%
 25-29 26%
 30-34 18%
 ABOVE 35 16%

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Demographic Representation
Of findings

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CONCLUSION
The following are the Conclusions from the Data Analysis:

1. The buying behaviour is governed predominantly by the need for


Power and respect for the iconic Brand.
2. The internal locus of control is by and large dependent on the
Sense of Control the motorcycle offers and also on the Sense of
Freedom that users associate with it.
3. Users are mostly Professional Males, 20-35 years of age, including some
students
4. Users display mostly Value-Expressive behavior and Ego-defensive
behavior is not seen amongst responses.
5. People who choose not to buy Bullets do so because of high price,
maintenance and spares hassles and also because some feel they are
not built for it.
6. Advertisements are rarely recalled and are highly ineffective
amongst non-Bullet riders.
7. Bullets are perceived as low on cost-effectiveness, but high on ride
comfort and reliability.

Based on our findings, we can make the following recommendations to Royal


Enfield:
1. Marketing Communication should focus on satisfying the needs for
Respect, Power and Comfort.
2. A non-flamboyant well-built brand ambassador may be chosen to
represent the Brand
3. Television Commercial spots are more remembered than Print
Advertisements even when they are over 6 years old.

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LIMITATIONS

Despite best efforts, certain important facets of this study remained


uncovered. Some of them are as follows:

1. A sample of 19 respondents is not representative of the attitudes of


more than 10,000active Bullet riders across the country.

2. Enfield exports slightly modified motorcycles to 13 nations. No


feedback regarding those models was taken.

3. Important factors like Safety were never truly looked into as most
riders considered this to be a hygiene factor across all motorcycles.

The study was limited in scope and resources and as mentioned


earlier, the data was only are presentative of the kind of data that
would need to be analyzed if the study is scaled to a bigger population.

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BIBLIOGRAPHY

1. http://www.royalenfield.com/
2. Nargundkar, R. Marketing Research,3rd Edition
3. Schiffman, L G. and Kanuk, L L. ,Consumer
Behavior ,8th Edition
4. Beri, G C., Business Statistics,2nd Edition
5. http://www.eicherworld.com/
6. http://www.wikipedia.org
7. http://www.team-bhp.com
8. August 2009, Bike India, Vol. 5, Issue 001

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