PROJECT REPORT

ON

“A STUDY ON CUSTOMER SATISFACTION TOWARDS

ROYAL ENFIELD BIKES, HYDERABAD”

1. CHAPTER 1- INTRODUCTION 1-40
This chapter contains introduction to Marketing,
Meaning, Definition, Importance and other relevant
aspects of Customer Satisfaction, the theoretical
background to Automobile Industry till date and
Indian two wheeler markets.
2. CHAPTER 2- RESEARCH DESIGN 41-51
 Statement of problem
 Objectives of study
 Scope of study
 Operational Definitions
 Research Methodology
 Tools of Data collection
 Sample Design
 Plan of Analysis
 Limitations of the study
 Overview of Chapter scheme
3. CHAPTER 3- COMPANY PROFILE 52-77
This chapter contains the historical background of the
company, company vision, objectives, and SWOT
analysis.
4. CHAPTER 4- DATA ANALYSIS AND 75-114
INTERPRETATION
Analysis and interpretation from the data collected
through questionnaires, Tables and graphs
representing it.
5. CHAPTER 5- SUMMARY OF FINDINGS 115-120
AND CONCLUSIONS
This chapter contains the findings drawn from the
study.
6. CHAPTER 6- SUGGESTIONS 121-123
This chapter consists few suggestions to the company
7. ANNEXURES
This chapter contains Questionnaire.
8. BIBLIOGRAPHY
Name of the books, author, magazines and websites.
 CHAPTER 1
INTRODUCTION
INTRODUCTION

Royal Enfield one of the popular brand and highest selling bike in India and outside
India (USA, Europe, Australia etc). Royal Enfield motorcycles had been sold in India from
1949. In 1955, the Indian government looked for a suitable motorcycle for its police and
army, for use patrolling the country's border. As far as the motorcycle brand goes, though, it
would appear that Royal Enfield is the only motorcycle brand to span three centuries, and still
going, with continuous production. Product range has widened and the customer has evolved.

STATEMENT OF THE PROBLEM

Customer satisfaction plays a crucial role in enabling an organization to change and

develop with customers. Keeping the existing customer contended is generally much easier,
takes less time and involves less expense. The reason for this is that it takes more time to find
new prospective customer. In this context study is conducted with special reference to
customer satisfaction. A company can earn more profits only when it has strong customer care
towards product and services offered by the company. So to have strong customer care it has
to provide a competitive price further advertising to increase.

OBJECTIVES OF THE STUDY

1. To understand the reasons for purchasing Royal Enfield bikes.

2. To know about the experience after purchase relating various parameters (Service,
bike performance, mileage etc).
3. To ascertain the barriers to purchasing a Bullet for a prospective customer.
4. To ascertain the factors that affects the choice of a Bullet as a motorcycle for common
man.
5. To propose an effective Promotional campaign plan for brand Royal Enfield.
6. To determine the customer’s satisfaction regarding bikes and after sales service.
SCOPE OF THE STUDY

This study includes Customer’s response and awareness towards the brand, products and
services of Royal Enfield. The results are limited by the sample size 75 numbers and therefore
the opinion of only selected customers is taken into consideration. Mainly this study is
conducted in Hyderabad and the scope is limited.

OPERATIONAL DEFINITIONS

1. Customer- A customer (also known as a client, buyer, or purchaser) is usually used to

refer to a current or potential buyer or user of the products of an individual or
organization, called the supplier, seller, or vendor.
2. Customer 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."
3. Respondents- A person who replies to something, esp. one supplying information for a
survey or questionnaire or responding to an advertisement.
4. Objective- An end that can be reasonably achieved within an expected timeframe and
with available resources.
5. Bike- A motor vehicle with two wheels and a strong frame.
6. Buying- To acquire in exchange for money or its equivalent purchase.

RESEARCH METHODOLOGY
 The research will be carried out in various phases that constitute an approach of
working from whole to part. It includes subsequent phases trying to go deeper into the user’s
psyche and develop a thorough understanding of what a user looks for while buying a bike.

The first phase is completely internal where it is stormed over the most effective route of
action, considering that Bullet users in Hyderabad are more in number.

The second phase is with some of the seasoned bikers who have been using Bullets for some
time now and are generally known and respected amongst the Bullet community.

The third phase is with some respondents who will be interviewed with the help of
questionnaire keeping in mind the time and cost constraints.

TOOLS OF DATA COLLECTION

The information relevant for study was drawn from Primary data collected through survey
method, which alone was not sufficient. Hence Secondary data was collected to study
successfully.
 Primary data- In order to find out customer satisfaction regarding bikes of Royal
Enfield Primary Data was collected by personally visiting the dealerships and
showrooms. With the help of a well laid questionnaire, I took the feedback from the
customers who were coming for the services of their bikes at the dealerships. As well
as I contacted some of the customers through telex calling by taking the data about the
customers from the customer data register of the dealership. I interviewed them and
discussed with the showroom staff as well as with the employees at Royal Enfield
which helped me to prepare the research Report.
 Secondary data- The Secondary Data collection involved internet search, browsing
magazines, newspapers and articles and papers related to the two wheeler industry in
India. Numerous Journals and books related to the topic were also browsed to
understand the dynamics of the industry.

SAMPLE DESIGN
 The research was carried out in various phases that constituted an approach of working
from whole to part. It included subsequent phases trying to go deeper into the user’s psyche
and develop a thorough understanding of what the user looks for while buying a bike. In order
to get a perspective from non-Bullet riders as to what are the reasons for not choosing a
Bullet, I administered the same questionnaire to riders who used other motorcycles keeping in
mind the time and cost constraints. For the customer satisfaction study a sample of 75 persons
was chosen from the in Hyderabad city. The sample was judgmental and methodology was
convenient random sampling.

Size of Sample 75

Sampling technique Convenient Random Sampling method

Location from which samples were taken Hyderabad city

PLAN OF ANALYSIS

 Raw Primary data has been collected with help of questionnaire. The raw data has
been tabulated with the help of table. From the tables, concept, analysis and inferences
are drawn which in turn was used for interpretation. Based on, these charts were
prepared to better pictorial understanding of the study.
 From the set of inferences and interpretation, conclusion have been drawn which is
followed by suggestions, keeping the objectives in mind throughout the study.

LIMITATIONS OF THE STUDY

 This research is geographically restricted to Hyderabad city only. Hence the result
cannot be extrapolated to other places.
 The study is restricted only to the organized sector of two wheeler industry.
 Sample size was confined to 75 respondents keeping in view of time and cost
constraints.
 Findings are based on sample survey. The information executed by respondents may
or may not be true because some respondents may not be serious. However all
possible has been made to collect the information as authentically as possible.
 All interview questions are undisguised or direct. Hence there is a scope for the
respondents to be biased or pretentious.
 This project has been taken up at the undergraduate level and the knowledge and
experience of the student is limited and hence may not be professional enough.
 CHAPTER – I
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 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.

Contemporary approaches

Recent approaches in marketing include relationship marketing with focus on the customer,
business marketing or industrial marketing with focus on an organization or institution and
social marketing with focus on benefits to society. New forms of marketing also use the
internet and are therefore called internet marketing or more generally e-marketing, online
marketing, search engine marketing, desktop advertising or affiliate marketing. It attempts to
perfect the segmentation strategy used in traditional marketing.
Customer orientation
A firm in the market economy survives by producing goods that persons are willing and able
to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and
even existence as a going concern. Many companies today have a customer focus (or market
orientation). This implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this: the customer-driven approach, the
market change identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of
a market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that
there is no reason to spend R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological
breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA (Solution,

Information, Value and Access). This system is basically the four Ps renamed and reworded
to provide a customer focus. The SIVA Model provides a demand/customer-centric
alternative to the well-known 4Ps supply side model (product, price, placement, promotion)
of marketing management.

Product → Solution

Price → Value

Place → Access

Promotion → Information

If any of the 4Ps were problematic or were not in the marketing factor of the business, the
business could be in trouble and so other companies may appear in the surroundings of the
company, so the consumer demand on its products will decrease.
Organizational orientation

In this sense, a firm's marketing department is often seen as of prime importance within the
functional level of an organization. Information from an organization's marketing department
would be used to guide the actions of other departments within the firm. As an example, a
marketing department could ascertain (via marketing research) that consumers desired a new
type of product, or a new usage for an existing product. With this in mind, the marketing
department would inform the R&D department to create a prototype of a product/service
based on consumers' new desires.

The production department would then start to manufacture the product, while the marketing
department would focus on the promotion, distribution, pricing, etc. of the product.
Additionally, a firm's finance department would be consulted, with respect to securing
appropriate funding for the development, production and promotion of the product. Inter-
departmental conflicts may occur, should a firm adhere to the marketing orientation.
Production may oppose the installation, support and servicing of new capital stock, which
may be needed to manufacture a new product. Finance may oppose the required capital
expenditure, since it could undermine a healthy cash flow for the organization.

Marketing research

Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by managers
to plan marketing activities, gauge the nature of a firm's marketing environment and attain
information from suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, Chi-squared tests, linear regression,
correlations, frequency distributions, poison distributions, binomial distributions, etc. to
interpret their findings and convert data into information. The marketing research process
spans a number of stages, including the definition of a problem, development of a research
plan, collection and interpretation of data and disseminating information formally in the form
of a report. The task of marketing research is to provide management with relevant, accurate,
reliable, valid, and current information. A distinction should be made between marketing
research and market research. Market research pertains to research in a given market. As an
example, a firm may conduct research in a target market, after selecting a suitable market
segment. In contrast, marketing research relates to all research conducted within marketing.
Thus, market research is a subset of marketing research.

Market segmentation

Market segmentation pertains to the division of a market of consumers into persons with
similar needs and wants. For instance, Kellogg's cereals, Fro sites are marketed to children.
Crunchy Nut Cornflakes are marketed to adults. Both goods denote two products which are
marketed to two distinct groups of persons, both with similar needs, traits, and wants. Market
segmentation allows for a better allocation of a firm's finite resources. A firm only possesses
a certain amount of resources. Accordingly, it must make choices (and incur the related costs)
in servicing specific groups of consumers. In this way, the diversified tastes of contemporary
Western consumers can be served better.

Types of marketing research

Marketing research, as a sub-set aspect of marketing activities, can be divided into the
following parts:

 Primary research (also known as field research), which involves the conduction and
compilation of research for a specific purpose.
 Secondary research (also referred to as desk research), initially conducted for one
purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research conducted

into health foods, which is used solely to ascertain the needs/wants of the target market for
health foods. Secondary research in this case would be research pertaining to health foods,
but used by a firm wishing to develop an unrelated product.

Primary research is often expensive to prepare, collect and interpret from data to information.
Nevertheless, while secondary research is relatively inexpensive, it often can become
outdated and outmoded, given that it is used for a purpose other than the one for which it was
intended. Primary research can also be broken down into quantitative research and qualitative
research, which, as the terms suggest, pertain to numerical and non-numerical research
methods and techniques, respectively. The appropriateness of each mode of research depends
on whether data can be quantified (quantitative research), or whether subjective, non-numeric
or abstract concepts are required to be studied (qualitative research).

There also exist additional modes of marketing research, which are:

 Exploratory research, pertaining to research that investigates an assumption.

 Descriptive research, which, as the term suggests, describes "what is".
 Predictive research, meaning research conducted to predict a future occurrence.
 Conclusive research, for the purpose of deriving a conclusion via a research process.

Promotion (marketing)

Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyer's purchasing decision. Fundamentally,
however there are three basic objectives of promotion. These are:

1. To present information to consumers as well as others

2. To increase demand
3. To differentiate a product.

Marketing strategy

The field of marketing strategy encompasses the strategy involved in the management of a
given product. A given firm may hold numerous products in the marketplace, spanning
numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order
to effectively manage such products. For example, a start-up car manufacturing firm would
face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other
large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus,
the issue of divest, or a ceasing of production, may be made.

CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services supplied by
a company meet or surpass customer expectation. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported experience with a
firm, its products, or its services (ratings) exceeds specified satisfaction goals." It is seen as a
key performance indicator within business and is part of the four of a Balanced Scorecard. In
a competitive marketplace where businesses compete for customers, customer satisfaction is
seen as a key differentiator and increasingly has become a key element of business strategy.
Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers’ expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. These metrics
quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-
mouth marketing, which is both free and highly effective. In researching satisfaction, firms
generally ask customers whether their product or service has met or exceeded expectations.
Thus, expectations are a key factor behind satisfaction. When customers have high
expectations and the reality falls short, they will be disappointed and will likely rate their
experience as less than satisfying. For this reason, a luxury resort, for example, might receive
a lower satisfaction rating than a budget motel—even though its facilities and service would
be deemed superior in “absolute” terms.

CUSTOMER SATISFACTION IN 7 STEPS

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If
you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest
assured, though, it does get easier over time. It's important to meet your customers face to
face at least once or even twice during the course of a project.
2. Respond to Messages Promptly & Keep Your Clients Informed
This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all customers'
queries within the space of a few hours, but at least email or call them back and let them
know you've received their message and you'll contact them about it as soon as possible.
Even if you're not able to solve a problem right away, let the customer know you're working
on it.
3. Be Friendly and Approachable
A fellow Site Pointer once told me that you can hear a smile through the phone. This
is very true. It's very important to be friendly, courteous and to make your clients feel like
you're their friend and you're there to help them out. There will be times when you want to
beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital
that you keep a clear head, respond to your clients' wishes as best you can, and at all times
remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If a
customer has a problem, what should they do?
If the first option doesn't work then what? Should they contact different people for billing and
technical enquiries? If they're not satisfied with any aspect of your customer service, who
should they tell? There's nothing more annoying for a client than being passed from person to
person, or not knowing who to turn to. So make sure your customer service policy is present
on your site -- and anywhere else it may be useful.
5. Attention to Detail
Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalized sign-up confirmation email for a service that you
could tell was typed from scratch? These little niceties can be time consuming and aren't
always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's something.
It shows you care; it shows there are real people on the other end of that screen or telephone;
and most importantly, it makes the customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.
7. Honor Your Promises
It's possible this is the most important point in this article. The simple message: when
you promise something, deliver. Clients don't like to be disappointed. Sometimes, something
may not get done, or you might miss a deadline through no fault of your own. Projects can be
late, technology can fail and sub-contractors don't always deliver on time. In this case a quick
apology and assurance it'll be ready ASAP wouldn't go a miss.
CUSTOMER LOYALTY

Obtaining a thorough understanding of customer loyalty is a prerequisite for the

execution of the research at hand. For that, the development of customer loyalty research
within the framework of relationship marketing will be presented first, before different
customer loyalty concepts will be introduced. From these concepts, a definition of customer
loyalty for use in this study will be derived, before both consequences and antecedents of
customer loyalty will be portrayed.
Since the beginning of the 1990s, customer loyalty has gained importance both in
relationship marketing research and in business. In business, this can be attributed to
changing market- and competition-environments. Due to a shift from a sellers’ to a buyers’
market and because of an increasing degree of globalization, most industries find themselves
confronted with new challenges. In a first phase, firms tried to face these challenges by
focusing on their internal processes and organizational structures, trying to achieve cost
reductions by concentrating on internal improvements. A second phase of external focus
followed, where firms directed attention to their customers, trying to retain existing ones and
to win over new ones (churning). Since “acquiring new customers is much more expensive
than keeping them”. And “loyal customers are the bedrock of any business”. A loyal
customer base represents a barrier to entry, a basis for a price premium, time to respond to
competitor innovations, and a bulwark against deleterious price competition. Loyalty is
critical to brand volume, is highly correlated to market share, and can be used as the basis of
predicting future market share; consequently, understanding loyalty appears critical to any
meaningful analysis of marketing strategy.
In marketing research, two trends mark the development of customer loyalty. While
individual transactions initially were in the center of marketing research, the focus shifted
towards analyzing relationships states that the ‘traditional’ marketing concept of the
marketing mix with its ‘4 Ps’, developed in the middle of the last century, had been the
established approach until the 1990s.
This approach, how-ever, focuses solely on transactions, a deficit tackled by the relationship
marketing approach. At the core of it is the study of relationships between buyers and sellers
of goods or services, in contrast to merely examining transactions. An often cited and
comprehensive definition of relationship marketing is provided “Relationship marketing
refers to all marketing activities directed toward establishing, developing, and maintaining
successful relational exchanges.” Therefore, the relationship marketing approach pro-vides a
suitable environment in which customer loyalty research can be nested. While the
development of relationship marketing began in the early 1970s, it was not until the late
1980s that works from the ‘Nordic School of Services’. Initiated a paradigm shift that geared
marketing towards the creation, conservation, and extension of buyer-seller relationships.
Although relationship marketing today is widely accepted among marketing researchers, its
promoters do not postulate the replacement of the transactional approach, but rather juxtapose
the two approaches. For example, delineates a strategy continuum, in which different goods
require different degrees of transaction- and relationship-based marketing strategies. As a
result of the focus on relationships in marketing research, customer loyalty gained importance
within research. Before determining which stream the present study can be associated with,
however, it is important to create a clear understanding of different customer loyalty concepts
prevalent in research. This will be accomplished in the following section.

Customer Loyalty Concepts

Reviewing research, it becomes obvious that the notion of customer loyalty is blurred. At its
core, customer loyalty deals with relationships between suppliers and their customers and can
be distinguished from other loyalty aspects, such as brand loyalty, which refer to a more
abstract attachment, such as that towards a brand. Within German customer loyalty literature,
the notion of customer loyalty is even more faceted, encompasses both ‘customer loyalty’ and
‘customer retention’ distinguishes an active, supplier-focused component and a passive,
customer focused component of customer loyalty.

In the supplier-focused perspective, customer loyalty is seen as a bundle of measures

that aim at improving relationships with customers. The supplier is in the center of attention
and the customer is only regarded as the factor at which success of customer loyalty becomes
manifest. Here it becomes clear that this approach contains a conceptual deficit. It is the
customer who eventually decides on whether customer loyalty management is successful or
not, because all activities undertaken by a supplier can only be geared at influencing
customers to be loyal. A customer-focused perspective therefore has to be added to evaluate
the success of customer loyalty management.

Within the customer-focused perspective, customer loyalty is conceptualized taking into

account customers’ complex characteristics. These can either be approached as customers’
directly observable actions and/or take into account their attitudes and intentions. Since
customers’ actions are directly influenced by their attitudes and intentions, it is obvious that
these have to be scrutinized to understand and manage loyalty. A third perspective is a
synthesis of the former two approaches. The relationship-focused perspective directly
examines the relationship between suppliers and customers. Accordingly, the objects of study
in this perspective usually are buying behavior in retail contexts and long-term relationships
marked by frequent interaction between suppliers and buyers in industrial contexts.

Behaviorist customer loyalty concepts

Behaviorist concepts of customer loyalty have been at the core of early marketing
research and focus on customers’ observable behavior, as e.g. in purchasing behavior.
Accordingly, customer loyalty is established, when customers demonstrate consistency in
their choice of supplier or brand. “Hard-core” loyalty, when one product alternative is
exclusively repurchased and of “reinforcing” loyalty, when customers switch among brands
but repeat-purchase one or more alternatives to a significant extent. Similarly, customer
loyalty as “the proportion of times a purchaser chooses the same product or service in a
specific category compared to the total number of purchases made by the purchaser in that
category“. Pegging customer loyalty to purchasing behavior, however, is very critical; there
can be a multitude of factors affecting purchasing behavior, such as product availability or
special deals, which are not grasped by looking at purchases alone. A main deficit of the
behaviorist approach thus is that it does not look at the drivers’ behind purchasing behavior.
Another disadvantage of behaviorist customer loyalty concepts is their ex-post approach.
When loyalty is only expressed through purchases, information on customers’ actual loyalty
status in between purchases is not available. Consequently, decreasing loyalty is only
recognized after it manifests itself through changed purchasing behavior. Only in
relationships with frequent interaction can a supplier integrate further aspects, such as
complaints, into customer loyalty management. The reason, why behaviorist concepts may
still be valuable, is because the measurement of customer loyalty in this approach does not
necessitate involvement by the customer. The assessment of attitudes and intentions would
always imply customers’ cooperation through participation in surveys. By simply recording
purchases, e.g. through delivery records in the industrial context or customer cards in a
consumer context; the assessment of customer loyalty poses little difficulty. Particularly in
areas, where most purchases can be easily ascribed to individual customers, as is the case
with mail-ordering or book-stores on the internet, the behaviorist approach is useful for
identifying different customer groups and their characteristics. Such firms, however, can only
assess purchases of their own products, while purchases of competing products go unnoticed.
Firms can therefore neither draw conclusions about relative changes of purchasing behaviors,
nor evaluate their comparative market position.

Neo-behaviorist customer loyalty concepts

These narrow technical definitions do not adequately capture the richness and depth
of the loyalty construct implicit in a relational framework.” Consequently, neo-behaviorist
customer loyalty concepts start at the shortcomings of the behaviorist approach by examining
the causes of loyalty. As early as 1969, Day concluded that “loyalty should be evaluated with
both attitudinal and behavioral criteria” otherwise accidental repeat-purchases, merely
resulting from situational exigencies, would be regarded as indicators of loyalty. There is no
agreement, however, on the question, whether attitudes are part of customer loyalty or merely
an antecedent of it. Some authors propose that only positive attitude can lead to ‘true’
customer loyalty. If attitude then is a necessary prerequisite of customer loyalty, some drivers
of loyalty cannot be explained. Transaction cost theory, for instance, provides the concept of
asset specificity. Relationship-specific investments create economic switching barriers and
therefore increase customer loyalty. However, the mere repeat purchase of goods or services
for reasons of economic constraints would not qualify as loyalty, as positive attitudes are not
involved. In order to avoid the outlined problem, it is useful to abstain from defining positive
attitude to be a necessary antecedent of loyalty. Instead, researchers usually consider
intentions and observable behavior to be the constituting elements of customer loyalty.
Determinants of Customer Loyalty
In order to be able to gear marketing activities towards the creation of customer loyalty, its
determinants and their precise effects have to be known. Accordingly, many researchers have
investigated this topic. In order to gain an overview of the determinants identified in these
works, they can be structured in three dimensions:
OBJECTIVES OF CUSTOMER SATISFACTION PROGRAMME

Our Programs are research based, built on the three corner stone’s of customer satisfaction:
product quality, process and procedural quality, and relationship quality. Our typical program
assesses specific issues under each component, for example:

Product Quality
          •       meets or exceeds expectations
          •       state-of-the-art technology
          •       validated, tested, & simulated to client specifications
          •       competitive pricing
          •       enhance customer value

Procedural Quality
          •       ease of ordering
          •       accurate fulfillment
          •       inventory meets needs
          •       on time delivery
          •       environmentally friendly packing
          •       packaged to prevent damage in shipment
          •       ease of tracking
          •       appropriate adjustment/return policy
          •       order-through-delivery process bests competition
   Relationship Quality
         •       product knowledgeable contacts
          •       knowledgeable about client needs
          •       communicates at client knowledge level
          •       one-stop problem resolution
          •       problems solved at the root cause
          •       legendary customer service benchmarks competition

The tailored Programs provide direct, statistically valid, comparison data of you to your
competition on the following actionable areas:
 •       Responsiveness
•       Competitiveness
•       Innovativeness
•       Quality
•       Customer Service
•       Long Term Partnering

It accurately quantifies your competitive strengths and weaknesses from your customers'
perspective. Using the data, it will help you focus strategic efforts to retain and increase
market share. The programs also provide direct measure of the effectiveness of initiatives
your organization has implemented during prior year (after first year's participation). That is,
you will have quantifiable internal benchmarks (in addition to the external competitive
benchmarks) on the repeat annual surveys to judge progress based on actions you have taken
during the previous 12 months.

TABLE SHOWING KEY FACTORS FOR CUSTOMER SATISFACTION

COMPANY FUNCTION QUALITY FACTORS

Sales Product
Knowledge
Marketing Brochure detail
Mailing frequently
Distribution Order Delivery time
Order Completeness
After Sales Problem Response Time
Time to Resolve
Accounts Accuracy
Problem Response
Courtesy
CUSTOMER CARE AND SALES PROCESSES

Service organizations are particularly dependent on levels of customer care, as the ‘people’
element in the marketing mix reflects. Customer care can play an equally important role,
however, in manufacturing, production and other organizations providing goods and services.
For customer care programs to be successful they need to span the entire organization.
Popular guarantees 100% customer satisfaction and has, over the years, developed a more
conscientious approach to individual customers. There is Customer care training provided.
Though this may initially be a very lengthy process as the ball starts rolling through all
sectors of the organization and costs will grow too, as further investment is required to update
and maintain the initiative in the future. To provide an effective customer care services, every
employee is highly motivated. There are frequent internal newsletters circulated which
strengthens the bond throughout the organization. Frequent performance appraisal throughout
the organization is conducted to evaluate the employees and provide career developmental
opportunities to potential employees. The customer care program at Popular mainly have six
main stages, as follows:

1. Objectives setting: For every month, target sales will be fixed by the Sales Manager at
the showroom.

2. Current situation analysis: Present industrial trend is observed closely and various
promotional offers are introduced to boost sales if there is a chance for a slump in sales.
Also, a customer service audit is conducted both internally and externally. Monthly
sales targets fixed by the Sales Manager.

3. Strategy development: Develop a strategy for raising levels of both customer service
and sales from the current to the desired standard based upon any change in trends and
the economic conditions prevailing. Each region is divided into 4 zones. Each zonal
level will be under the charge of a supervisor under whom there are four sales
executives. It is the duty of these sales executives to generate on field enquiries and to
follow up the customers based on the appointment fixed.
 4. Functional planning: Define training needs and other requirements such problem-
solving sessions or teambuilding exercise to execute the strategy. Daily, a meeting of all
the staffs at their respective branch is convened. Here they discuss their daily programs
and targets to meet plus they also discuss about their previous day’s work among the
team. They consider the response of all the individual customers met.

5. Implementation: Implement training and other initiatives through workshops,

seminars. The prospective customers are segregated and the issues raised by certain
customers will also be addressed. Some customers may not be satisfied with the present
offers and price. In such cases efforts will be put up to make maximum adjustments and
convert it to sales.

6. Monitoring: Results are tested through customer and employee surveys and evaluation
of the training methods is also conducted. The program is improved and updated on a
continuous basis.

HANDLING CUSTOMER COMPLAINTS

A complaint is any measure of dissatisfaction with your product or service, even if it’s
unfair, untrue, or painful to hear! Complaints may be about:

• Service Content, Delivery or Quality • Response Time

• Documentation • Personnel
• Billing • Communication
• Follow Up • Requests
This is a customer complaint resolution process that anyone can implement:
 Focus on the Customer
If you can’t immediately solve the problem, respond to the customer and identify an “owner”
who will be responsible for final resolution. Complete the communications loop with
customer. If you’ve referred the complaint to others, make sure there’s closure. If you’ve left
the customer hanging without a response, you’ve become part of the problem.
 Focus on the Complaint
Collect all complaints from all external customers and categorize them in a way that allows
you to analyze data to see trends, patterns, concentrations, tendencies, etc.
 Focus on Process Improvement
Use the database of complaints to define processes that are important from the customer’s
perspective and to improve the most critical ones. Based on analysis of the database, make
appropriate investments to prevent issues that result in customer complaints. If you can think
of complaints as useful data for making process improvements in your organization, you will
go a long way towards making changes that will differentiate you and make your work life
easier, more fun, and more responsive to customer needs.

SIX STEPS TO DEALING WITH DIS-SATISFIED CUSTOMERS

1. Listen carefully to what the customer has to say, and let them finish-Don't get
defensive. The customer is not attacking you personally; he or she has a problem and is upset.
Repeat back what you are hearing to show that you have listened.

2. Ask questions in a caring and concerned manner-The more information you can get
from the customer, the better you will understand his or her perspective. I’ve learned it’s
easier to ask questions than to jump to conclusions.

3. Put yourself in their shoes-As a business owner, your goal is to solve the problem, not
argue. The customer needs to feel like you’re on his or her side and that you empathize with
the situation.

4. Apologize without blaming-When a customer senses that you are sincerely sorry, it
usually diffuses the situation. Don't blame another person or department. Just say, "I'm sorry
about that.”

5. Ask the customer, "What would be an acceptable solution to you?"-Whether or not the
customer knows what a good solution would be, I’ve found it’s best to propose one or more
solutions to alleviate his or her pain. Become a partner with the customer in solving the
problem.

6. Solve the problem, or find someone who can solve it— quickly!-Research indicates that
customers prefer the person they are speaking with to instantly solve their problem. When
complaints are moved up the chain of command, they become more expensive to handle and
only add to the customer's frustration.
INDUSTRY PROFILE
AUTOMOBILE INDUSTRY TILL DATE
The automobile industry is one of the biggest industries in the world. Being a major revenue
and job generating sector it drives the economies of some of the superpowers of the world. In
India the automobile industry has grown by leaps and bounds since the advent of the
liberalization era the automobile industry and especially the two wheeler segment has grown
by leaps and bounds.
The liberalization has done away with primitive and prohibitive practices of licensing and
restricted foreign investment have been done away with. The result of which was the entry of
foreign players into the Indian market. The two wheeler segment was largely dominated by
Automobile Products of India (API) and Enfield in the 50s. Later on towards the end of the
50s Bajaj Autos began importing Vespa scooters from Italian company Piaggio. In the
following decades the automobile industry in India was mainly dominated by scooters with
API and later Bajaj dominating the market. There were very few products and choices
available as far as motorcycle is concerned and Enfield bullet and Rajdoot dominated the
market. The 80s saw the entry of Japanese companies in the Indian market with the opening
up of the market to foreign companies. Hero Honda and TVS Suzuki are companies formed
in this era of market reform. The market was still predominantly scooter dominated and Bajaj
and LML were the leading brands producing the products at that time.
The Japanese companies not only collaborated with Indian companies to produce the already
existing products but also brought in new technology as a result of which the ever conquering
100cc bikes which were extremely fuel efficient with 4 stroke engines were launched in
India. These proved to be highly successful as they provided a cheap and affordable means of
personal transport to all those who could not buy a car. The flourishing middle class took a
great liking for these bikes and the bike sales in India began to grow exponentially year on
year leading to Hero Honda becoming the leader in the two wheeler industry in India and the
largest producer of 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 2015 – 2016, 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 2015-10 states that 8,418,626 two wheelers were produced during the year
against a total of 11,175,479vehicles produced during the year.
India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea
and Thailand. India’s automobile sector consists of the passenger cars and utility vehicles,
commercial vehicle, two wheelers and tractors segment. The total market size of the auto
sector in India is approximately Rs 540 billion and has been growing at around 8 percent per
annum for the last few years. Since the last four to five years, the two wheelers segment has
driven the overall volume growth on account of the spurt in the sales of motorcycles.
However, lately the passenger cars and commercial vehicles segment has also seen a good
growth due to high discounts, lower financing rates and a pickup in industrial activity
respectively. Major automobile manufacturers in India include Maruti Udyog Ltd., General
Motors India, Ford India Ltd., Eicher Motors, Bajaj Auto, Daewoo Motors India, Hero Honda
Motors, Hindustan Motors, Hyundai Motor India Ltd., Royal Enfield Motors, TVS Motors
and Swaraj Mazda Ltd.

With the economy growing at 9% per annum and increasing purchasing power there has been
a continuous increase in demand for automobiles. This, along with being the second largest
populated country, makes the automobile industry in India a very promising one.

INDIAN TWO WHEELER MARKET

Ever since the old Lambretta scooter was replaced with the flurry of vibrant two wheeler
models, Indian two wheeler industry has seen a phenomenal change in the way they perceive
the Indian market. Two wheeler manufacturers are now competing in an ever growing
consumer market by bringing out new products and features. The country has now grown into
the second largest producer of two wheelers in the world. Currently there are around 10 two-
wheeler manufacturers in the country, and they are Bajaj, Hero, Hero Honda, Honda,
Mahindra/Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. There have been various
reasons behind this growth. Because of poor public transport system, the citizens found
convenience in two wheelers. Added to this is the fact that the average Indian still does not
have the purchasing capacity for a more expensive, four wheeler. The story of Mr. Ratan
Tata inspired by a family of four members travelling in Indian roads, not concerned about
safety and the evolution of the idea of TATA Nano has been quite famous globally. The
Indian two wheeler industries can be divided into motorcycles, scooters and mopeds. The
consumer has changed his preference from mopeds to scooters and then to motorcycles. The
trends seen in the past few years include females increasingly using two-wheelers for their
personal commutation and various two wheeler manufacturers designing vehicles specially to
cater to needs of this segment. One of the earliest revolutions in this industry was Kinetic’s
introduction of the concept of electronic/self-start and automatic gears which made two
wheelers comfortable and useable by women, when compared to old Bajaj Chetak
advertisements which showed middle aged females riding a Bajaj Chetak scooter.
A recent trend in the industry has been electric vehicles, which mostly leverage on their eco-
friendliness and low operating costs, but is still not accepted well due to the lack of reputation
of the manufacturers and lack of trust on technology, which is still being perceived in the
nascent stages, especially battery and inverters which prove to be very expensive
components. TVS recently leveraged this opportunity by launching a hybrid model of their
non geared scooter – TVS Scooty. The end of the last decade saw Bajaj taking a radical
decision to do away with the Scooter range and completely concentrate on motorcycles,
especially stating change in customer’s preference as the main reason. The customers are left
without a choice in most cases than to migrate from the traditional scooters of the Indian
family to the all youthful bikes.
TOP EXPORT DESTINATIONS

The Indian Automobile industry has attained new heights in the last ten years. It has
seen the vehicle production growing rapidly and industry has been making significant
contribution to the employment, directly and indirectly, and also to kitty of indirect taxes.
Today, all major OEMs are in India and many of them have made India a hub for their small
cars and exports.
In December 2006, Government had formulated a ten-year Automotive Mission
Plan with an aim to achieve domestic vehicle market of $82-119bn by 2016 and $12bn export
of vehicles. It also aimed at making India 7th largest vehicle producing country in the world
by 2016. And, we have already achieved this milestone in 2016, which is good six years
ahead of the target.

 In this category, SAARC countries have been one of the key destinations for Indian
exports with three of the SAARC countries, Sri Lanka, Bangladesh and Nepal featuring
in the top 6 export destinations for Indian two wheelers segment. However, exports to
Sri Lanka, which used to be the largest importer of two wheelers from India in 2006-07,
have fallen by almost 20% since 2006-07 to reach a level of $ 63mn of exports in 2015-
10.
 The top most destinations for exports in this segment is Nigeria which imported two
wheelers worth $ 103mn in the year 2015-10 up from $ 85mn in 2008-09, a growth of
21% approximate. In fact, Nigeria has emerged as one of the fastest growing destination
for Indian two wheeler exports over past 4 years. India exported two wheelers worth
merely $ 6mn in Nigeria in 2006-07 which has grown by 15 times to reach an export
level of $ 103mn in 2015-10. Amongst the top 5 export destinations in this segment,
Colombia experienced the highest increase in growth of imports from India in 2015-10.
Exports of two wheelers to Colombia increased by 45% in 2015-10 over 2008-09.

FUTURE PROJECTIONS

 The Indian automobile industry is expected to grow to US$ 40bn by 2015 from the
current level of US$ 10bn in 2015. By the year 2016 the industry is expected to
contribute 10% of the nation’s GDP. The industry manufacturers over 11mn vehicles a
year employing more than three million people.
 The greatest challenge and competition would be from the Chinese automobile industry.
It has been able to give stiff competition to India in terms of productivity, cost of
manufacturing and technology. Again the present trend of excess manufacturing
capability, reduced margins put additional pressure on the industry.
 On the positive side, India’s strength in software sector, combined with skilled labor
and low cost of manufacturing should place it in a favorable position globally.
 Two wheeler industry gains more profit Considering the scenario of traffic and roads in
India, and the rate at which infrastructure is growing in comparison with the market,
any fool will prefer to travel in a two wheeler (for regular use, not for picnic or time
 pass or once in a while trips). For the simple reason that, with a two wheeler, sneaking
anywhere is far easier than a four wheeler. And definitely faster too. And then comes
the bigger problem of parking. Two wheelers can be parked anywhere on the road, but
that’s not the case with a four wheeler. So, the whole point is unless there is some way
where these two issues are addressed, I don’t think anything significant is going to
happen.
 It gives the optimistic view about the industry and the overall industry shows positive
growths which recommend the investors to keep a good watch on the major’s players to
benefit in terms of returns on their investments.

RECENT TRENDS IN TWO WHEELER SECTOR

 The international trends suggest that the growth of the two-wheeler markets will
continue unabated for some time. In value terms, the BRIC motorcycles market grew
by 14.7% between 2006 and 2016 to reach a value of $32.4 billion (Brazil alone
growing by 32% pa). By 2013, the market is forecast to have a value of $54.7 billion.
 The global motorcycle demand has been growing at 6-7% pa and is estimated to be
about 80-85 million units per annum. India has emerged as one of the key players
with a domestic market that is nearly about 11% of the global market and growing
significantly faster. The high base implies that India and Indian companies are set to
enter a stage where they are likely to be the preferred suppliers for motorcycles. This
is likely to lead to further innovations and efficiency gains.
 Of course, the Indian market is significantly different with the segment below 150 cc
being the dominant segment. This is unlike the developed world, where it is the larger
bikes that dominate the market volumes. Indian consumption is also likely to shift
significantly toward international trends, but in the foreseeable future, it is the smaller
bikes that will remain the mainstay.
 At present as many as 72% of the bikes are in the entry segment (defined as 75 to 125
cc), and 27% are in the executive segment (defined as 125-250 cc). Only 1% of the
bikes are in the premium segment.
 The premium segment is expected to continue to be a niche segment and its share is
not expected to grow beyond 2-2.5% over the next decade. However, that itself
implies that it will be a market of about 200,000 to 250,000 annual units, which is
substantial and attractive. (As a comparison, the declining Japanese market currently
consumes only about 350,000 motorcycles annually in the above-250 cc category,
having fallen sharply over the past few years).

CHAPTER - II

COMPANY PROFILE
HISTORY OF THE COMPANY

Mid 19th century England The firm of George Townsend & Co. opened its doors in the tiny
village of Hunt End, near the Worcestershire town of Redditch. The firm was specialized in
sewing needles and machine parts. In the first flush of enterprise, flitting from one
opportunity to another, they chanced upon the pedal-cycle trade. Little did they know then
that it was the beginning of the making of a legend. Soon, George Townsend & Co. was
manufacturing its own brand of bicycles. And in 1893 its products began to sport the name
‘Enfield’ under the entity Enfield Manufacturing Company Limited with the trademark
‘Made Like a Gun’. The marquee was born.

INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors (formerly Enfield of India)

FOUNDED 1893, as Enfield Manufacturing

Co. Ltd.

DEFUNCT 1971

HEADQUARTERS Redditch, Worcestershire, England

KEY PEOPLE Founders Albert Eadie and Robert Walker Smith

PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

Profile of the Organization

Royal Enfield is the makers of the famous Bullet brand in
India. Established in 1955, Royal Enfield (India) is among
the oldest bike companies. It stems from the
British manufacturer, Royal Enfield at Redditch. Royal
Enfield has its headquarters at Chennai in India. Bullet bikes are famous for their power,
stability and rugged looks. It started in India for the Indian Army 350cc bikes were imported
in kits from the UK and assembled in Chennai. After a few years, on the insistence of Pandit
Jawaharlal Nehru, the company started producing the bikes in India and added the 500cc
Bullet to its line. Within no time, Bullet became popular in India.
Bullet became known for sheer power, matchless
stability, and rugged looks. It looked tailor-made for
Indian roads. Motorcyclists in the country dreamt to
drive it. It was particularly a favorite of the Army
and Police personnel. In 1990, Royal Enfield
ventured into collaboration with the Eicher Group, a
leading automotive group in India, in 1990, and
merged with it in 1994. Apart from bikes, Eicher Group is involved in the production and
sales of Tractors, Commercial Vehicles, and Automotive Gears. Royal Enfield made
continuously incorporating new technology and systems in its bikes. In 1996, when the
Government of India imposed stringent norms for emission, Royal Enfield was the first
motorcycle manufacturer to comply. It was among the few companies in India to obtain the
WVTA (Whole Vehicle Type Approval) for meeting the European Community norms.
Today, Royal Enfield is considered the oldest motorcycle model in the world still in
production and Bullet is the longest production run model.

2016 AWARDS
The New Year saw the dawn of India's most prominent automotive show, the Auto Expo
2016. Held between January 5th and 11th at the Pragati Maidan in New Delhi, the event saw
more than 400 global brands showcasing new technology, products and show-off concepts.
Royal Enfield was also a part of the event, displaying the recently launched Royal Enfield
Classic 500 EFI and the Royal Enfield Classic 350. The main stays of the Royal Enfield
display were the soon to be launched variants of the Classic - the Royal Enfield Classic
Chrome and the Royal Enfield Classic Battle Green.
The Expo turned out to be a rather rewarding experience for Royal Enfield with the Royal
Enfield Classic and the Marketing team picking up as many as five awards.
Awards 2016:
- Apollo Auto India Awards 2016: Best Brand
- Zigwheels.com Viewers Choice Bike of the Year 2015
- Zigwheels.com Bike of the Year above 251cc
- NDTV Profit Car & Bike Awards 2016: Motorcycle of the Year above 250 cc.
- NDTV Profit Car & Bike awards 2016: Best PR Communications Team.

EVOLUTION OF ROYAL ENFIELD

THE BEGINNING (1851 – 1890)

Hunt End, England was a village of several small
mills manufacturing needles and fish-hooks. It was here
in 1851 that George Townsend put up his needle-making
mill, which he named Givry Works. But it wasn’t until
his passing away that his son, George Jr. and his half-
brother brought into Givry Works one of the first
'boneshakers' – a crude cycle. It had a backbone of iron, with wooden wheels, iron tires and
pedals of triangular pieces of wood! Though the bike was a source of some amusement,
George and his team felt they could easily improve on it. The earliest modern safety bicycle
with two wheels of equal size had appeared in about 1880. All manufacturers were trying
their hand at this new venture. So was George Townsend Jr. By luck, he chanced upon an
invention in his neighbourhood – a saddle that only used one length of wire in the two springs
and in the framework. This was adopted, patented and marketed as the 'Townsend Cyclists
Saddle & Spring'. He had entered the bicycle parts trade!

From bicycle parts, Townsend slowly moved on to producing bicycles himself. He was also
supplying a wide range of parts to other manufacturers - Givry Works was growing rapidly.
Over the next three years he developed his own range of over two-dozen machines. Each
machine, known locally as the 'Townsend cycle' was reputed for its sturdy frame, a character
that all Enfield bikes would follow.

THE COMING INTO BEING (1891 – 1900)

1891 A Little Trouble-Townsend got himself into a bit of financial trouble in about 1890 and
called in some financiers from Birmingham.
Unfortunately, they didn’t quite see eye to eye. So
Townsend parted ways with the financiers leaving the
company to them. The financiers then brought in Albert
Eadie and R.W. Smith. They took control of Townsend’s
in November 1891. The following year the firm was re-
christened ‘The Eadie Manufacturing Company
Limited’. Soon after, Albert Eadie got a lucrative
contract to supply precision rifle parts to the Royal Small Arms Factory in Enfield,
Middlesex.

1892 Kick Starting Royal Enfield-A new company was created

to market these new design bicycles called ‘The Enfield
Manufacturing Company Limited’. By October 1892, the
Enfield bikes were announced to the public. The following
year the word Royal (after the Royal Small Arms Company)
was added and thus Royal Enfield began. Then in 1893 the
Royal Enfield trademark ‘Made like a Gun’ appeared. Britain
was caught up in a patriotic fervor and the slogan caught the spirit of the time. In 1899 the
first mechanical vehicle was advertised by Enfield Cycle Company. It was available in both
tricycle and quadric cycle form, powered by a De Dion 1.5 hp engine. The high wheels, solid
tires, block chains and heavy cross frames had by then given way to Diamond frames, the
Hyde Freewheel, Enfield 2 speed hub and the well known Eadie Coaster. Then came the
‘Riche Model’ with more refined fittings. By 1907, the cycle industry was still headquartered
at Redditch, producing run-of-the-mill conventional cycles.

1897-Quadricycles
In 1897, R. W. Smith built himself a quadric cycle – a
simple bike with four wheels and a French engine placed
under the saddle between the rear wheels. During the
next two years several developments were made. About then, an Enfield quadric cycle
completed the 1,000-miles road trial of 1900 organized by the Automobile Club of Great
Britain and Ireland. The Enfield vehicle was awarded the silver medal, although it had its
share of troubles and breakdowns.

MOTORCYCLES (1900 - 1910) 1904-Four Wheelers and Three

Buoyed by success, Smith and Eadie decided to extend the
range of quadric cycles and tricycles to include motorcars.
The first Royal Enfield cars were built in 1901 and were
on the road in 1902. It was an 8hp, using a DE Dion
engine. The body was made in Leicester and painted
yellow hence car was known as ‘The Yellow Car’. But this
was just a temporary phase, a wild romance that was soon
to die.

1909-Motorcycle Craze
It would be interesting to note here that motorcycling was
thought to be a temporary enthusiasm that would soon
fade out! A brief spin on a motorbike then took several
hours of preparations - tuning the tiny water-cooled
engine, getting the tires pumped, the gears oiled and a
supply of spare parts packed. In 1909, Royal Enfield took the biking world by surprise. At the
motorcycle show that year, they displayed a small 2 1/4 hp V twin-engine machine built in
the Swiss tradition, which ran very well. A slightly larger model was developed in 1911. A 2
3/4 hp, with all chain drive incorporating the well-known Enfield two-speed gear. This model
stood up until 1914.
THE ROYAL ENFIELD BIKES (1911 - 1920)

1911-Enfield and the War

The First World War began in 1914. Royal Enfield was
called on to supply motorcycles to the British War
Department and even awarded a contract to build bikes
for the Imperial Russian Government during the same
period. The machine gun combination and the 6hp stretcher-carrying outfit were some of the
models produced for the war purpose. Enfield started using its own engines - a 225cc two-
stroke single and a 425cc V-twin about this time. Post-war, it produced a larger 976cc twin
and continued to produce the two-speed 225L until 1929. In 1917, the officers of the
Women’s Police Force were issued with a 2 1/4RE 2 stroke. Interestingly, the models of this
period featured 600cc, inlet-over-exhaust, closed valve gear, hand-operated oil pump, two-
speed countershaft gearbox and chain final drive. In the 1913-1914 Enfield V-Twin the
lubricating oil was contained in a glass tank attached to the frame tube that ran from the seat
to the rear of the engine. This worked perfectly and had the added advantage of providing an
instant visual check of oil levels. The 1915 make 675cc in-line 3-cylinder 2-stroke prototype
was the worlds’ first with this configuration and engine type.
THE INTERWAR YEARS (1921 - 1930)
1924 The First Four-stroke-The interwar year was a
period when the sidecar reached its zenith. In July 1925,
the Royal Enfield V-Twin-engine Dairyman’s Outfit
took part in the ACU Six Days’ Trial for Commercial
Sidecars and obtained a Special Certificate of Merit for
completing an arduous course without loss of marks. The
year 1924 saw the launch of the first Enfield four-stroke
350cc single using a JAP engine.

1928-The Depression
In 1928, Royal Enfield adopted saddle tanks and center-
spring girder front forks – one of the first companies to do
so. The bikes now with a modern appearance and
comprehensive range meant continuous sales even during
the dark days of depression in Great Britain towards the
end of 1930. In 1927 Royal Enfield produced a 488cc with
a four-speed gearbox, a new 225cc side-valve bike in 1928,
and a four-stroke single in 1931. Several machines were produced in the next decade, from a
tiny two-stroke 146cc Cycar to an 1140cc V-twin in 1937. Can you even imagine that Royal
Enfield’s range for 1930 consisted of 13 models!
ESTABLISHING BULLET (1931 - 1940)
 1933 The Bullet Arrives-In 1931 a four-valve, single-
cylinder was introduced, and christened 'Bullet' in 1932. It
had an inclined engine and an exposed valve gear. It was
then that the first use was made of the now famous Bullet
name. Longer stroke, four-valve head exposed valves and
heavily finned crank case were the features that ran from
1932 until the end of 1934.

1940 The Second World War-The most well known

offering for the Second World War was no doubt the
‘Flying Flea’. Also known as the ‘Airborne’, this
lightweight 125cc bike was capable of being dropped by
parachute with airborne troupes. The Flea was fitted into a
steel tubular cage called the ‘Bird Cage’, which had a
parachute attached to it. The cage aided in packing turning handlebars easily.
POST WAR BULLETS (1941 - 1950)

1948 Bigger and Better-The 1939 Bullet 350 kick-started

the post-war models. They used two rocker boxes for the
first time. This enabled better gas flow and consequently
higher volumetric efficiency. Royal Enfield’s own
designed and manufactured telescopic front fork placed
the Redditch marquee at the very forefront of motorcycle
design. The biggest advancement introduced by the new Bullet was its swinging arm rear
suspension system and hydraulic damper units themselves. In 1947 Enfield made a J2 - the
first model with a telescopic front end, followed in 1948 by a 500cc twin (Enfield's 25bhp
answer to the Triumph Speed Twin), which stayed in production until 1958.

1949 The Indian Debut-In 1949, the 350cc Bullet was

launched in India, when Madras Motors won an order
from the Indian Army for the supply of motorcycles. It
was the beginning of the reign of the Bullet in the
subcontinent. The Madras Motor Company started off by
receiving the Bullet in kits and simply assembling them. Then they began making the frames.
After this Enfield started sending the engine in parts to be assembled in India. Eventually
they were also manufacturing the engines, which meant that they were making the complete
bike. For the next thirty years, the design of their bike remained unchanged! In 1950, several
models were introduced: the 650cc Meteor twin; a 250cc Clipper; a short stroke 250cc
Crusader; 250cc Trials; Super 5; Continental; 500 Sports Twin; Super Meteor; Constellation
and the Interceptor.

A TALE OF TWO CITIES (1951 - 1960)

1951-In the UK…Never before in British automobile history had so much been done in a
single decade, not just by Royal Enfield, but the every
other marquee of the time. All new engines, all new
configurations, new paint schemes, new capacity
classes… the motorcyclist had never had such a wide
choice ever before. The 1950s saw the market open up
both ways, downwards for smaller capacity, light and
maneuverable machines, and upwards for larger capacity, high powered and reliable
motorcycles. The Royal Enfield showrooms in the UK saw everything from 125cc two
strokes to the mighty700ccMeteor.

1955-Meanwhile in Madras…The Indian Army, the sole reason

why the Bullet was brought to India in the first place, insisted
that they would continue doing business with Madras Motors
only if the Bullet was produced indigenously. The Enfield India
Bullet of the late fifties was quite a different motorcycle from
the one we are used to today. Using the famed Lucas Magdyno
ignition system, the 1955 Bullet was almost a clone of the 52 Redditch Bullet. The frame,
electric tin ware and rolling chassis, however, were to undergo many changes over the next
ten years, with the Bullet slowly evolving into the familiar form we know and love today.

A TALE OF TWO CITIES. NO… THREE! (1961 - 1970)

1961-Back in the UK…In 1960, the badge arrangement with Indian (Of America) had ended,
so Enfield was no longer sold under the Indian marquee
(Royal Enfield rival, British AMC company, acquired
the Indian Sales Corp. in 1959). However, in 1961, Eddie Mulder won the Big Bear Enduro
on an Enfield, which
gave the company a new foothold in the U.S. under its own name and started a new
marketing of the product. Models available in the U.S. that year included a 700cc twin and
six street scramblers, ranging from the 250cc Hornet to the 500cc Fury (essentially the single-
cylinder Bullet) to the 700cc Interceptor. Elliot Shulz also dominated the half-mile dirt track
in Los Angeles on an Enfield that year. Enfield won 31 out of 39 races in 1961 and had
several spectacular victories in 1964.Royal Enfield had arrived on The Continent! But things
at Redditch had hit a bad patch.
 1963-But back home in Madras…By 1970, Enfield India was a company established in its
own right, and with a production line going full steam, the need for collaboration with
Enfield of the UK and Villiers of the UK was no longer seen. But the Bullet flew true and
strong. A number of changes had already been made to the tin ware on the Bullet. Mudgaurd
design took on different forms, taking into account the
wet, slushy and messy road conditions during the Indian
monsoon. The Magdyno also gave way to the alternator
‘Delco’ ignition system. And front and rear hubs were
designed to provide more efficient cooling for Indian
conditions, and thus improve braking performance.

ALL THAT ENFIELD'S ISN'T A BULLET (1971 - 1980)

1973 The Mini Bullet-With the success of the Sherpa,

Enfield India launched the 173cc Villiers-powered
Crusader in India in 1973. A totally indigenous effort,
this small motorcycle used many Bullet chassis parts,
including fork legs and mudguards, and instantly found a
market among the many that wanted a Bullet, but were
diffident about handling it’s weight and size. The Mini
Bullet too was introduced this year. This motorcycle was
a 200cc two stroke sporting ‘contemporary’ design. Enfield India attempted to reach out to
the young market, providing them with a zippy, reliable and economical two-stroke.

TOUGH TIMES AHEAD (1981 - 1990)

 1983 Here comes the Lightweights-Like the adage that
goes, "when the going got tough, that's when the tough
get going". Enfield India got squarely into the fray with a
slew of lightweight machines. The 50cc Silver Plus step-
through and Explorer motorcycle are launched. Powered
by the Zundapp-engineered 50cc, 6.5hp two stroke motors, these bikes redefined the entry-
level segment. The Silver Plus, initially a two-speed and then later a three speed, found a
ready market not only among the young office going male, but among an increasing number
of women who found the step-through design convenient. The Explorer, with its
contemporary bikini fairing and 'fastback' tailpiece. Both bikes sported alloy wheels, a first in
India. Close on the heels of the little wonders came the Fury 175. Powered by a 175 Zundapp
two-stroke engine with a five-speed gearbox, this refreshingly quick motorcycle came fitted
with a hydraulic disc brake. Again a first in the country. And a bike, many feel, much too
early in INDIA.

1984 Brand New Vintages-The 80s also saw the Bullet in

many different avatars. The Deluxe models appeared, in
resplendent chrome and metallic colors, and 12 volt
electrical were offered as an option, to aid in brighter
lighting and easier starting. It was also the year when
Enfield India grew confident enough about their flagship
product to begin sending 'coals back to Newcastle'. Owing
to their status as 'brand new vintages', Enfield Bullets found a strong niche market in the UK
and Europe, among people looking to come back to motorcycling.

ENFIELD BECOMES ROYAL ENFIELD (1991 - 2000)

1990 Heavy Fuel-The 1990's saw many revolutionary models from the company. The Taurus
Diesel was the first production Diesel motorcycle in the world.

1993 Bullet 500-The Bullet 500 was launched in June this

year. It went on to become the most coveted model.
1994 Eicher acquires Enfield-In March the ailing company
got a new lease of life when Eicher group acquired Enfield India Company. The company
name changed to Royal Enfield Motors Limited.

ROYAL ENFIELD (2001 - 2016)

2001-The Dare Devils, the motorcycle display team of the Corps of Signals, Jabalpur forms a
Human Pyramid of 201 men on 10 Enfield 350cc bikes and rides a distance of more than 200
meters.

2002- India’s first Cruiser – The ‘THUNDERBIRD’- is

launched.BBC Wheels awards it ‘The Best Cruiser 2002’
title. The Bullet Machismo enters commercial production.
Dan Holmes and Johnny Szoldrak won the National Road
Race Championship (60’s Class) on a Bullet.
2003
The first ‘RIDER MANIA’ gets together is held in Goa.
REDS are formed in Pune.
The Bullet enters the Automotive ‘Hall of Pride’ at the ICICI
Overdrive awards.
1000 Riders descend on Redditch for the Royal Enfield
Owners Club 25th Anniversary.
Royal Enfield is one of the top ten 125-500 cc brands in UK.

2004-The 2004 Bullet Electra is launched.

The retro styled Bullet Machismo is rated ‘No.1Cruiser’ in
TNS Auto car survey.The Bullet Electra International with a
lean-burn engine is launched in the UK.34 men ride
simultaneously on a Bullet, setting a new world record.

2005

Royal Enfield India Celebrates 50 glorious years of

motorcycling and unveils a blueprint for the future.
The 2005 Bullet Electra features a revolutionary 5-
Speed left side gear shift that makes the marquee more accessible to motorcyclists. The
Legend rides on…
2006
Royal Enfield develops a fully integrated Twin Spark, 5-Speed engine that delivers a
dramatic increase in performance and efficiency. The new engine will power all domestic and
International models from 2007 onwards.

2007
Royal Enfield launches the all new limited edition
Machismo 500LB with customized accessories.

The legendary Bullet 350 needs no introduction. Now

Bullet 350 is with all new UCE engine. This classic
machine has kept place with advances in engineering
and ergonomics without diluting its impeccable
pedigree. 
 A long wheel base and bigger tires provide increased
stability and road grip, making it ideal for long
distance travel.Its aristocratic black & gold livery and thumping engine beat remind passers-
by that they are in the presence of automotive royalty.

2008

The Thunderbird Twins Park will be the first model to

feature Royal Enfield’s revolutionary Unit Construction
Engine. All the well loved features of the Thunderbird
have been retained and enhanced in some cases. Also, the
twin benefit of improved performance and engine
efficiency makes this motorcycle hard to beat in terms of pure riding pleasure and visual
delight. The evolutionary mix of old and new features in this motorcycle will surely delight
its owners.
 2015

The smaller twin

of the Classic 500, the Classic 350 will hold
its own against any other motorcycle and then pull some more. The Classic 350 shares its
power plant with the Legendary Thunderbird. The torque to flatten mountains and the fuel
efficiency to cross entire ranges comes in the same understated yet charming styling. This is a
motorcycle that does not need to shout to be heard. Born of a rich heritage and bred with
Royal Elegance this 350cc thumper has all the qualities of a typical Royal Enfield.
Appreciated then, appreciated now...
Why ride a lesser bike. Nothing more to be said.

The Classic
500 comes to
India. Armed with a potent fuel injected 500cc engine and clothed in a disarmingly appealing
post war styling, this promises to be the most coveted Royal Enfield in history. For those who
want it all. The power, the fuel efficiency, the reliability and simple, yet drop dead gorgeous
classic styling. The classic turns heads not because it wants to but because it can’t help it.
You will appreciate the beat not just for the music it creates but also for the muted feeling of
strength and power that it signifies. The view is simply better when you are astride a Royal
Enfield Classic 500 – whether moving or still. Nothing more to be said.
 Army's stunt riders break record- ARMY
PERSONNEL IN HYDERABAD SET RECORD OF CARRYING 48
PERSONS ON ONE BIKE Indian Army personnel broke a world
record by being the only team in the world to cross a staggering
distance of 1000 meters carrying 48 persons on a single moving 500
cc Royal Enfield motorcycle. 'Tornadoes', the motorcycle display
team of Army Service Corps today broke two world records by
being the only team to achieve a staggering distance of 1100 meters
with 54 persons on a single bike. They broke the record of Corps of
Military Police who carried 48 persons on a single moving 500 CC motorcycle here recently.
The team while exhibiting extraordinary skill, courage, endurance and mental strength,
entered the annals of record books by performing this breathtaking feat on a 500 CC Royal
Enfield motorcycle at the Runway of Air Force Station Yelahanka in the presence of a large
number of military and civil dignitaries. The 'Tornadoes' was raised in 1982 after having
given a stupendous display of daredevilry in the 1982 Asian Games. "Since then the men of
the Tornadoes Team by their sheer grit, determination and spirit of adventure have created a
niche for themselves by rewriting various records," the release said. The team at one point of
time had achieved the distinction of holding seven world and national records of varying
degrees of complexity and fortitude, it said.

ORGANISATIONAL STRUCTURE

GENERAL MANAGER
(Proprietor)

Sales Manager Service Manager Service Manager

Showroom Service Accountant

In charge Supervisor
charge
 Team Service Assistant

Manager Staffs Accountant

Sales

Representative

SWOT ANALYSIS

MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET

GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES

A Bajaj, Hero Honda Highly diversified - High buyer power

Aggressive promotion - High competitive

rivalry

- High entry barriers

B TVS Selectively diversified - Low entry barriers

Aggressive Promotion - Narrow product lines imply

that aggressive promotions can
eat into market share
C Honda, Yamaha Selectively diversified -High threat of

Moderate Promotion substitution (Rs 1 lakh car)

- Low entry barriers

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

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

SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY

STRENGTHS WEAKNESSES

 Established brands  Extremely price sensitive

 Strong Brand Name  Short PLC
 Fuel efficient  High R and D costs
 Style statement
 Convenient in heavy traffic
 Cheap and affordable
 Easy and cheap finance availability
 Patents
 Good reputation among customers
OPPURTUNITIES THREATS

 Growing premium segment  The Rs.1 Lakh car

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

SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA

STRENGTHS WEAKNESSSES

 Size and scale of parent company  Small showrooms

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

 Growing premium segment  Cut throat competition

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

CHAPTER III

DATA ANALYSIS AND

INTERPRETATION
TABLE No.1

Table Showing-The Profile Of The Respondents Based On Age

AGE NO. OF PERCENTAGE

RESPONDENTS
20-24 30 40%
25-29 19 26%
30-34 14 18%
Above 35 12 16%
TOTAL 75 100%
 16%

40%

18%

26% 20-24
25-29
30-34
Above
35

Analysis

From the above table it is clear that 40% of the respondents are aged between 20 and 24, 26%
between 25 and 29, 18% between 30 and 34 and only 16% aged above 35 years.

Interpretation

It is revealed that majority of respondents are between 20 and 29 years. From this we can
conclude younger generation and middle age are more interested in Royal Enfield may be
because this is the age where they start earning.

TABLE No.2

Table Showing-The Profile Of The Respondents Based On Gender

GENDER NO. OF PERCENTAGE

RESPONDENTS
MALE 69 92%
FEMALE 6 8%
TOTAL 75 100%
 8%

92% Male
Female

Analysis

From the above table it is clear that 92% of respondents were male and female respondents
constituted just 8% of total responses.

Interpretation

It is clear that most of the users of Royal Enfield are males mostly because of the manly look
of the bikes.

TABLE No.3

Table Showing-The Occupation Of Respondents

OCCUPATION NO.OF PERCENTAGE

RESPONDENTS
STUDENT 33 44%
GOVERNMENT 5 6%
SERVICE
EX-SERVICEMEN 3 4%
PROFESSIONAL 21 28%
SELF-EMPLOYED 13 18%
 TOTAL 75 100%

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Student
Govt service
Ex-servicemen
Proffesional
Self-employed

Analysis

From the above table it is clear that 44% of the respondents were students pursuing their
graduation or post graduation studies and 28% were professionals. 18% of the respondents
were self employed, 4% were ex-serviceman and 6% belonged to government services.

Interpretation

It is clear that users are mostly Professional males, 20-35 years of age including some
students because of the looks and power of the bike.

TABLE No.4

Table Showing-The Annual Income Group Of Respondents

INCOME GROUP NO. OF PERCENTAGE
RESPONDENTS
LESS THAN 1,20,000 39 52%
1,20,001-3,60,000 10 14%
3,60,001-7,20,000 14 18%
ABOVE 7,20,000 12 16%
TOTAL 75 100%
 16%

18%
52%

14%
Less than
1,20,000
1,20,001-
3,60,000

Analysis

From the above table it is clear that 52% of the respondents had an annual income of lesser
than 1,20,000, 18% had income between 3,60,001 and 7,20,000, 16% earned more than
7,20,000 per annum and 14% had income between 120001 to 3,60,000.

Interpretation

It shows that Royal Enfield is placing their products in the appropriate and reasonable price
range and the people of income bracket less than 1,20,000 can easily afford this Bike.

TABLE No.5

Table Showing-The Model Of The Royal Enfield The Respondents Presently Own

MODEL NO. OF PERCENTAGE

RESPONDENTS
BULLET 500 11 14%
THUNDER BIRD 7 10%
BULLET ELECTRA 15 20%
MACHISMO 500 6 8%
 BULLET 350 16 21%
CLASSIC 500/350 17 23%
OTHERS 3 4%
TOTAL 75 100%

18
16
14
12
10
8
6 Bullet 500
4 Thunder
Bird
2
Bullet Electra
0
Machismo
No. of Respondents 500
Bullet 350

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.

TABLE No.6

Table Showing- The Purchasing Way Of The Customers

PURCHASED BY NO. OF PERCENTAGE
RESPONDENTS
CASH 54 72%
LOAN 21 28%
TOTAL 75 100%
 60
50
40
30
20
10
0
CASH LOAN

Analysis

From the table it clearly shows that the products of Royal Enfield are in the acceptable price
range, as we can see that purchasing way of the 72% respondents are leading in the CASH
sector and 28% on loan basis. Customers are ready to pay for better facilities and technology
and they feel that all bikes deserves that price which Royal Enfield is offering.

Interpretation

It is clear that customers are easily affording the price of Royal Enfield bikes and they are not
feeling much problem with the amount.

TABLE No.7

Table Showing- The No Of Respondents Considering Other Motorcycle While Purchasing Royal
Enfield Bike

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 27 36%
NO 48 64%
 TOTAL 75 100%

70%
60%
50%
40%
30% 36% 64%
20%
10%
0%

YES

NO
No. of Respondents

Analysis

From the table it clearly shows that 36% of the respondents did go consider or checked for an
alternative motorcycle and 64% of them did not consider any other motorcycle while
purchasing their Royal Enfield bike.

Interpretation

It is clear that majority of the customers directly chose Royal Enfield as their bike and dint
even have a look at the nearest alternative bike and this shows the loyalty of the customers
towards the brand Royal Enfield.

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%

35%
30%
25%
20%
15%
10%
5%
0%

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.

ABLE No.9

Table Showing- The Mileage Of Royal Enfield After Purchase Of Bike

MILEAGE NO. OF PERCENTAGE

RESPONDENTS
45km/lit & Above 5 6%
40-45 16 22%
35-40 26 34%
30-35 18 24%
Below 30 10 14%
 TOTAL 75 100%

30

25

20

15

10

0
45km/lt 40-45 35-40 30-35 Below 30

Analysis

From the above table it is clear that 56% of respondents gain mileage of 35-45km/lit which is
really good, 24% of them between 30-35km/lit, 14% below 30km/lit and 6% above 45km/lit.

Interpretation

It clearly shows that mileage of the Royal Enfield bikes is economical & mileage between 35
and 40 that too on Indian roads with heavy traffic is a great deal.

TABLE No.10

Table Showing- The Breakdown Of Bikes Since Purchase Of Vehicle

FREQUENCY OF NO. OF PERCENTAGE

BREAKDOWN RESPONDENTS
VERY OFTEN 8 10%
RARELY 19 26%
NOT AT ALL 48 64%
TOTAL 75 100%
 10%

26%

64%

Very often
Rarely
Not at all

Analysis

From the above table it is clear that 64% of the respondents say that there is no problems or
breakdown of their bikes after purchase, 26% say rarely their bikes get repaired and 10% of
respondents say their bikes breakdown very often.

Interpretation

It is clear that most of the Royal Enfield bikes doesn’t breakdown at all and it is not
problematic and not involved into repair always.

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
SHOWROOM 48 64%
DIRECT SECOND 22 30%
HAND
USED VEHICLES 5 6%
DEALERSHIP
 TOTAL 75 100%
RESPONSE FOR NO. OF PERCENTAGE
SATISFACTION RESPONDENTS
YES 57 76%
NO 18 24%
TOTAL 75 100%

48

50 No. pf Respondents

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%

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.

TABLE No.12

Table Showing- The Availability Of Spare Parts In The Market

AVAILABILITY NO.OF PERCENTAGE

RESPONDENTS
READILY AVAILABLE 51 68%
DON’T GET THEM 8 10%
READILY
DON’T HAVE GOOD 12 16%
SPARES SUPPLY
MAJOR HEADACHE 4 6%
TOTAL 75 100%
 6%

16%

10%

68%

Readily Available
Don't get them readily
Don't have good spares
supply
Major headache

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.

TABLE No.13

Table Showing- The Major Problems After Purchasing Royal Enfield Bike
PROBLEMS NO. OF PERCENTAGE
RESPONDENTS
HIGH MAINTENANCE 11 14%
POOR AFTER SALES 7 10%
SERVICE
HIGH PRICE 15 20%
LOW MILEAGE 8 10%
NOISY VEHICLE 3 4%
 NO PROBLEM 31 42%
TOTAL 75 100%

14%

10%
42%

20%
High maintainance
4% Poor after sales
10% service
High Price
Low mileage
Noisy vehicle
No problem

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.

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%
AVERAGE 8 10%
GOOD 20 26%
EXCELLENT 43 58%
 TOTAL 75 100%

50 Excellent
40
30 Good
20
Average
10
0 Poor
No. of Respondents

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.

TABLE No.15

Table Showing-The Rating By The Respondents For Their Satisfaction Level With Respect To
Comfort And Safety

RATING NO. OF PERCENTAGE

RESPONDENTS
POOR 7 9%
AVERAGE 12 16%
GOOD 24 32%
EXCELLENT 32 43%
TOTAL 75 100%
 9%

16%

43%

32% Poor
Average
Good
Exellent

Analysis

From the above table it is clear that 9% of the respondents rated very poor and they were not
at all satisfied, 16% of them rated average, 32% of them rated good and maximum number of
respondents i.e. 43% rated excellent and these respondents were very much satisfied with
their bikes comfort and safety.

Interpretation

It is clear that majority of the respondents are satisfied with their bikes comfort and safety.
This shows Royal Enfield has an excellent satisfaction level within the customers.

TABLE No.16

Table Showing- The Rating By The Respondents For Their Satisfaction Level With Respect
To After Sales Service

RATING NO. OF PERCENTAGE

RESPONDENTS
POOR 11 14%
AVERAGE 13 18%
GOOD 27 36%
EXCELLENT 24 32%
 TOTAL 75 100%

30

25

20

15 27
24

10
13
11
5

0
Poor Average Good Excellent
No. of Respondents

Analysis

From the above table it is clear that 14% of the respondents rated very poor and they were not
at all satisfied, 18% of them rated average, 36% of them rated good and maximum number of
respondents i.e. 32% rated excellent and these respondents were very much satisfied with the
after sales service.

Interpretation

It is clear that majority of the respondents are satisfied with their after sales service and few
respondents are not at all satisfied. This shows Royal Enfield has a good satisfaction level
within the customers.

TABLE No.17

Table Showing- The Respondents Opinion Of The Major Barrier For Not Purchasing Royal
Enfield Bikes By Non-Bullet Riders

PROBLEMS NO. OF PERCENTAGE

RESPONDENTS
HIGH MAINTENANCE 11 14%
POOR AFTER SALES 7 10%
SERVICE
HIGH PRICE 15 20%
 LOW MILEAGE 8 10%
NOISY VEHICLE 3 4%
POOR PROMOTION 31 42%
TOTAL 75 100%

14%

10%
42%

20%
High maintainence
4% Poor after sales service
10%
High price
Low mileage
Noisy vehicle
Poor Promotion

Analysis

Maximum number of people (42%) described that there is very poor promotion for the Royal
Enfield, 20% had an issue with the price range, third biggest problem was 14% of them felt
high maintenance was required for the bike, only 4% of them felt it was noisy vehicle and
while 10% of respondents each refrained because of the low mileage and the poor after sales
service of Bullet.

Interpretation

It is clear that People who choose not to buy Bullets do so because of low promotion, high
price and maintenance. So Royal Enfield should concentrate on their promotional campaigns
and make sure it reaches the common man.

TABLE No.18

Table Showing - The Place Of Service Of Respondents Bike

PLACE OF SERVICE NO. OF PERCENTAGE

RESPONDENTS
SHOWROOM 34 45%
WELL KNOWN 29 38%
BULLET MECHANIC
NEARBY GARAGE 4 6%
 SELF SERVICE 8 11%
TOTAL 75 100%

Showroom Well known bullet mechanic

Nearby garage Self service

11%

6%

45%

38%

Analysis

From the above table we can say that 45% of the respondents prefer their service of their bike
in showroom, 38% of them with well known bullet mechanic, 6% of them in nearby garage
and 11% of them prefer self service to their bike.

Interpretation

It is clear that most of the respondents service their bikes in the showrooms and also with a
well known bullet mechanic. There is no much difference but this shows people have less
trust with the showroom service.

TABLE No.19

table showing- the respondents opinion and level of satisfaction about the company taking
action towards complaints lodged by the customers

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 55 73%
 NO 20 27%
TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE

SATISFACTION RESPONDENTS
YES 49 66%
NO 26 34%
TOTAL 75 100%

60 55

50

40

30

20 20

10

0
Yes
No

No. of Respondents

Point of satisfaction

No
34%

Yes
66%

Analysis

The above table shows that 73% of the respondents accept that the company takes action
towards the complaints lodged by the customers and 27% disagree for the same. Also the
satisfaction level is 66% by the respondents and 34% are not satisfied.

Interpretation
It is clear that most of the respondents agree that the company takes action towards the
complaints lodged by the customers and also the satisfaction level of the customers is very
high. This shows Royal Enfield checks at the complaints registered by their customers on
regular basis to maintain its brand value.

TABLE No.20

Table Showing- The Respondents Opinion About Participating In The Rider Mania
Organized By The Royal Enfield Club

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 62 82%
 NO 13 18%
TOTAL 75 100%
18%

82%
Yes
No

Analysis

The above table shows that 82% of the respondents are wants to participate in the Rider
Mania and 18% of them are not interested.

Interpretation

It clearly shows that majority of the respondents are very much interested in Rider Mania and
also shows that respondents are very passionate Enfield fans.
 CHAPTER IV
FINDINGS AND CONCLUSION

FINDINGS

1. It is revealed that majority of users are between 20 to 29 years. From this we can
conclude younger generation and middle age are more interested in Royal Enfield may
be because this is the age where they start earning.
2. It is clear that most of the users of Royal Enfield are males mostly because of the
manly look of the bikes.
3. Users are mostly Professional males, 20-35 years of age including some students
because of the looks and power of the bike.
4. Royal Enfield is placing their products in the appropriate price range. As the people of
this income bracket less than 1,20,000 can easily afford this Bike.
5. Customers are not attracted to only one particular model due to the variants available
and because the Classic 500/350 is the newly released models they are fast moving
now.
6. Customers are easily affording the price of Royal Enfield bikes and they are not
feeling much problem with the amount and purchasing way of most of the customers is
leading in cash sector.
7. Majority of the customers directly chose Royal Enfield as their bike and dint even have
a look at the nearest alternative bike and this shows the loyalty of the customers
towards the brand Royal Enfield.
8. Advertisements are rarely recalled and are highly ineffective amongst non-Bullet
riders. It’s clear that Royal Enfield should concentrate on its advertising campaign to
reach the customers.
9. It clearly shows that mileage of the Royal Enfield bikes is economical & mileage
between 35 and 40 that too on Indian roads with heavy traffic is a great deal.
10. Most of the Royal Enfield bikes doesn’t breakdown at all, it is not problematic and not
involved into repair always.
11. It is clear that most of the respondents prefer to buy their bike brand new from
showroom only and majority of the customers are very much satisfied with the place of
purchase of their Royal Enfield bike. This also shows there is more demand for new
bikes.
12. It is clear that majority of the respondents are satisfied with spare parts availability
and we can say that Royal Enfield has good distribution channel for spare parts in the
city.
13. It is clear that majority of the people who choose Royal Enfield as their bike doesn’t
have any problems or issues with their bike’s performance.
14. Majority of the respondents are satisfied with their bikes power and pick up. This
shows Royal Enfield has an excellent satisfaction level within the customer
 15. Majority of the respondents are satisfied with their bikes comfort and safety. This
shows Royal Enfield has an excellent satisfaction level within the customers.
16. Majority of the respondents are satisfied with their after sales service and few
respondents are not at all satisfied. This shows Royal Enfield has a good satisfaction
level within the customers.
17. It is clear that People who choose not to buy Bullets do so because of low promotion,
high price and maintenance. So Royal Enfield should concentrate on their promotional
campaigns and make sure it reaches the common man.
18. It is clear that most of the respondents service their bikes in the showrooms and also
with a well known bullet mechanic. There is no much difference but this shows people
have less trust with the showroom service.
19. Most of the respondents agree that the company takes action towards the complaints
lodged by the customers and also the satisfaction level of the customers is very high.
This shows Royal Enfield checks at the complaints registered by their customers on
regular basis to maintain its brand value.
20. Majority of the respondents are very much interested in Rider Mania and also shows
that respondents are very passionate Enfield fans.

CONCLUSION

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

We can conclude younger generation and middle age are more interested in Royal
Enfield, the buying behavior is governed predominantly by the need for Power and respect
for the iconic Brand and users are mostly Professional Males, 20-35 years of age, including
some students. Most of the customers are attracted to newly released Classic 350/500, also
customers are easily affording the price of Royal Enfield bikes and customers are very loyal
towards the brand Royal Enfield.

Royal Enfield should concentrate on its advertising campaign to reach the customers,
mileage of the Royal Enfield bikes is very economical and most of them prefer to buy their
bike brand new from showroom with the spare parts available in market easily.

Royal Enfield has an excellent satisfaction level within the customer for its power,
pick up, comfort, safety 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.

SUGGESTIONS

 Aggressive selling- The Company should follow an aggressive selling concept. A

non-aggressive selling concept which is clearly visible in its advertising campaign
which does not hit on the customer rather aims to provide information in a subtle
manner.
 Promotional campaign- The Royal Enfield ads seen on electronic and print media are
absolutely out of touch with the Indian culture and thought process. An Indian
consumer irrespective of their income level has a soft corner for traditions and culture
of India. Hence, all companies including market leaders like Hero Honda and Bajaj
 capitalize on this behavior of customers and design their ad campaigns keeping India
in mind.
 Weak follow up from dealerships- It was observed during the study that Royal Enfield
was quite weak in following up with prospective customers.
 Measures should be taken to improve its dealership- Showrooms are very small in
size and do not reflect the quality and scale of Royal Enfield in the market.
 Should improve the after sales service- During the survey it was found that Royal
Enfield is not satisfying all their customers in after sales services, employees at
dealership sometimes use harsh words and become rude to the customers, parts of the
bike are not easily available in the market. This is the major drawback in capturing the
market share so Royal Enfield should take some better steps to satisfy and retain their
customers.
 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 Hyderabad.
 Purchasing way of customers- Customers are easily affording the price of Royal
Enfield bikes and they are not feeling much problem with the amount. But the
company should also take some steps towards making purchase easier through bank
loans and EMI’s.
 Marketing communication- It should focus on satisfying the needs for Respect,
Power, Safety and Comfort.
 Brand ambassador- A non-flamboyant well-built brand ambassador may be chosen to
represent the Brand. It is necessary for Royal Enfield to have a brand ambassador
from India to connect with the Indian customer.
 Build iconic status- Royal Enfield should concentrate on building around the iconic
status it already enjoys if it plans to attract customers migrating to other
manufacturers.
 ANNEXURE
QUESTIONNAIRE

I am Venu S, a final year BBM student from Presidency College. This

information is required for successful completion of my project ‘A Study on Customer
Satisfaction towards Royal Enfield bikes, Hyderabad.’ I request you to kindly spare some of
your time and fill the questionnaire below. Thank you.

RESPONDENT INFORMATION

Name:

1. Age:

2. Gender : Male Female

3. Occupation:

Student Government service

Professional Self employed other

4. Annual Income:

Less than 1, 20,000 1, 20,001-3, 60,000

3, 60,001-7, 20,000 Above 7, 20,000

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

Bullet 500 Thunder Bird

Bullet Electra Machismo 500 Bullet 350

Classic 500/350 others

6. How did u purchase the bike?

Cash Loan

7. Did u consider other motorcycle while buying the Royal Enfield bike?
 Yes No

- If yes which bike did you compare with?

Bike cc

8. Please specify your source of awareness of Royal Enfield while buying your bike?

Newspapers Magazines Friends

Road shows TV Adds Website/blogs

Showroom Others

9. Please specify your bike’s mileage?

45km/lit & above 40-45

35-40 30-35 Below 30

- Are you satisfied with the bikes mileage?

Yes No

10. Frequency of breakdown of your bike?

Very often rarely Not at all

11. Which place did you prefer to purchase your Royal Enfield bike?

Showroom Direct second hand

Used vehicles dealership

Are you satisfied purchasing there? YES NO

12. How about the availability of spare parts?

Readily available don’t get them readily

Don’t have good spares supply Major headache

13. Any major problems after purchasing Royal Enfield bike?

No problem

High maintenance Poor after sales service

High price Low mileage Noisy vehicle

14. How many stars will u rate for your satisfaction level with respect to power and pick
up of your Royal Enfield bike? Poor Average
Good Excellent

15. How many stars will u rate for your satisfaction level with respect to comfort and
safety of your Royal Enfield bike?

16. How many stars will u rate for your satisfaction level with respect to after sales service
of your Royal Enfield bike?
17. How does your friend say to your Royal Enfield bike?

Trendy Macho

High Cost Low mileage

Expensive spare parts

Others- If any

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

High Maintenance Poor after sales service

High price Low mileage

Poor promotion Noisy vehicle

19. Where do you service your Royal Enfield bike?

Showroom Well known bullet mechanic

Nearby garage self service

20. Do you agree that company takes action towards the complaints lodged by the
customers?

YES NO

Are you satisfied with their replies?

YES NO
21. How many times have you suggested your friends or relatives to purchase of Royal
Enfield bikes?

1-2 3-4 More than 5

22. Would you like to participate in the Rider Mania organized by the Royal Enfield club?

YES NO

23. Any suggestions

BIBLIOGRAPHY

Books Referred
 Marketing Management, 13th edition - Philip Kotler
 Survey Research Methods - Charles Babbie

Magazines Referred

 The Bullet-In, The Magazine For All Royal Enfield Bullet Enthusiasts.
  Royal Enfield Magazine, The BEAT.

Websites Referred

 www.google.com
 www.royalenfield.com
 www.wikipedia.org
 www.enfieldmotorcycles.com