A Study of Assessment of Brand Repositioning on Rayal Enfield

A STUDY OF ASSESMENT OF BRAND REPOSITIONING ON ROYAL ENFIELD

CHAPTER –1

GENERAL INTRODUCTION

BRAND REPOSITIONIG“If a brand does not reposition at the right time, it may not get a second chance”.

MEANING:

1. In marketing, positioning has come to mean the process by which

marketers try to create an image or identity in the minds of their target

market for its product, brand, or organization.

Re-positioning involves changing the identity of a product, relative to the

identity of competing products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing

products, relative to the identity of your own product, in the collective minds

of the target market.

Brand repositioning means rebirth of any brand for a particular

product...relenshing of the old technology or concept by innovative solution.

Repositioning can be required as the market changes and new opportunities

occur. Through repositioning the company can reach customers they never

intended to reach in the first place. If a brand has been established at the market

for some time and wish to change their image they can consider repositioning,

although one of the hardest actions in marketing is to reposition a familiar brand

The repositioning strategy is rolled out in three stages: introductory, elaboration

and fortification stages. This involves the introduction of a new or a repositioned

brand, seeking to underline the brand’s value over others, and to broaden the

brand proposition. It is truly tough to change the customer’s perceived attitude

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towards a brand, and therefore the risk is great that the attempt to repositioning

might be unsuccessful.

After rolling out the strategy, it is time to modify the proposition through update

of the personality and through repositioning. There are benefits and risks with

both of this segments and it is of great significance that they are truly

evaluated when deciding the next step in the process.

.

FACTORS THAT LEADS A BRAND TO REPOSITION

1) Operating environment - there could be changes in the environment brought

about by change in laws of the land etc. like ITC's shift towards FMCG and

apparels since tobacco industry is being haunted world over due to its negative

factors.

2) Competition - Either you keep making the loudest noise or improve your

service deliverables a notch higher to that of your competition. In both cases it

calls for substantial resource allocation. So the simplest thing instead would be to

reposition yourself. There does not seem to be much of a dent in Airtel market

share despite the tough competition from Vodafone and our own BSNL.

3) Brand positioning - Holds good for a lot of old world brands that have been

built on a sound proposition that was relevant in those days but look weak in

modern times. Like videocons change in positioning from a desi brand to that of

an international one.

TOP REASONS TO REPOSITION A BRAND

Brand repositioning is necessary when one or more of the following conditions

exist:

Your brand has a bad, confusing or nonexistent image.

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The primary benefit your brand "owns" has evolved from a differentiating

benefit to a cost-of-entry benefit.

Your organization is significantly altering its strategic direction.

Your organization is entering new businesses and the current positioning

is no longer appropriate.

A new competitor with a superior value proposition enters your industry.

Competition has usurped your brand's position or rendered it ineffectual.

Your organization has acquired a very powerful proprietary advantage that

must be worked into the brand positioning.

Corporate culture renewal dictates at least a revision of the brand

personality

STAGES IN BRAND STRATEGY DEVELOPMENT

The implication with the term” repositioning” is that a company modifies

something that is already present in the market and in the consumer’s

mind. The definition of repositioning changes different individuals and

professions. To view the different definitions and perceive a greater

understanding about this concept, three examples of repositioning given

by individuals in different professions is stated below:

“Repositioning is a change, principally about trigging the vision, mission

and value in

a new direction that is more suited for the brand in the future”

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Establishing the brand proposition

Selecting appropriate marketing mix

Rolling out the strategy Introductory

stage Elaboration

Stage

Modifying the proposition

Repositioning Updating the

personality.


THE PRINCIPLE OF REPOSITIONING

When striving towards a new position in the market, it is important to understand

that consumer’s minds are limited. People’s minds select what to remember and

it is therefore significant to convince the consumers with great arguments. The

market demand changes rapidly and therefore repositioning can be necessary to

meet these demands, newer and stronger arguments have to be established to

convince them to stay as loyal customers.

As stated in the literature, repositioning is a very complicated matter and

therefore there are no detailed theories or models. The aim with repositioning

differ from person to person, and the only connection between all the different

theories is that repositioning is moving something from somewhere towards a

greater position at the market.

BRAND REPOSITIONING STRATEGIES

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New Position

Previous position

Experienced Quality

Price


Corstjens and Doyle (1989) identified three types of repositioning strategies:

(1) Zero repositioning, which is not a repositioning at all since the firm maintains

its initial strategy in the face of a changing environment;

(2) Gradual repositioning, where the firm performs incremental, continuous

adjustments to its positioning strategy to reflect the evolution of its environment;

(3) Radical repositioning that corresponds to a discontinuous shift towards a new

target market and/or a new competitive advantage.

After examining the repositioning of several brands from the Indian market,

the following 8 types of repositioning have been identified. These are:

1. Increasing relevance to the consumer

2. Increasing occasions for use

3. Making the brand serious

4. Falling sales

5. Bringing in new customers

6. Making the brand contemporary

7. Differentiate from other brands

8. Changed market conditions.

It is not always that these eight categories are mutually exclusive. Often one

reason leads to the other and a brand is repositioned sometimes for a multiplicity

of reasons.

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ABOUT INDUSTRY:

BRIEF HISTORY OF THE TWO WHEELERS IN INDIA:

India is the third largest producer of Two-Wheelers after Japan and China,

and the second largest consumer after China, despite the poor road

infrastructure and the meagre purchasing power, the two wheeler industry in

India has enjoyed a wider appeal with the masses as a means of private

transportation.

Two-wheelers are usually classified in 3 types Scooters, Motorcycle and Mopeds.

A look at the Post Independence era that the Two-wheeler industry has

witnessed three distinct phases of growth.

Phase – l (1947 to 1984): - The Indian Two-Wheeler structure was quite

monopolistic during the first 37 years since independence when volumes grew at

a slow pace. Bajaj auto had an undisputed leadership oven the market, which

was a major player in the industry consumer, had to literally wait for years before

acquiring a Bajaj vehicle. The industry registered a compounded growth rate of

12% during the seventies.

Phase – ll (1984 to 1994): - The second phase began in the mid eighties

when the scooter was partially deregulated. This phase saw Japanese

companies typing up with domestic players and newer models were introduced in

specific segments. Even through the demand was apparently strong for scooter,

most of the Japanese ventures like Kawasaki Bajaj, Hero Honda, TVS Suzuki

opted to produce motor cycle except for Kinetic Honda which chooses to

manufacture scooter.

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The annual growth rate for the two-wheeler industry during the phase stood

at 16.40% this phase extended till the early nineties and there was a succession

during the last part of this phase i.e. 1992-1993. The production of scooter fell by

a step 16% in 1992-92.and by 8% the following years.

Phase – lll (1994 to … …): - This phase began in 1994 when sales started

accelerating. The market saw a step increase in the demand. In 1995, the

industry produced about one million scooters, 6 lakhs motorcycle and 5 lakhs

mopeds. The motorcycle segments sales grew by 27.80% from April – 1995 to

December –1995. During the same period, scooter sales grew by 17.26% and

mopeds by 20.70%. Almost all companies are going in for capacity expansion.

FUTURE OF THE TWO-WHEELER:

Gearing up for new millennium: - The motorcycle industry is growing very fast

in India. It is emerging as a big motorcycle market – The reasons for this are:

Affordability

Easy finance scheme

Life style

Value for money

New technology

Both the two-stroke and four-stroke motorcycle will be well equipped to combust

pollution by 2000AD. By the Euro norms, pollution control will become very

stringent and only those manufacturers will survive, who have very strong R & D

for quality control. All vehicles will have to meet these norms. This is very

important for the motorcycle industry.

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These days, motorcycles are not just for the Indian market. Indian bikes are

now being manufactured by keeping in mind both international standard and the

world market. Motorcycles today have become a vehicle for the middle class and

upper middle class. Quality will sell and good product will run, come, what may.

Gone are the days when we could expect a customer to walk in. Today the trust

is on the concept of selling the vehicle, which includes marketing, advertising and

after sales service. The Euro ll norms will have to be followed strictly. In order to

meet the Y2K pollution norms (Euro-ll) all the other motorcycle manufactures

have to adopt either

Today, India in merging as the second largest two-wheeler market in the

world. The annual sales demand is likely to touch 3.70 million by 2000A.D.

Market potential: Is the limit approached by market demand as industry

marketing expenditures approach infinity, for a given environment.

Market growth rate:

It is the rate of growth of the two-wheelers in the market with to its previous year

sales with that of the present year’s sales. Market growth rate of two-wheelers in

India is 88.24%.

Market share of Two-Wheeler Companies:

The companies overall market shares in its sales expressed as a parentage of

total market sales. The market as a whole consists of Two-Wheelers and Four-

Wheelers, which are used by the consumers probably for personal use for their

transportation and time management. Market share occupied by the two-wheeler

sector in India is 77.10%.

Various players in the industry:

ROYAL ENFIELD

HERO MOTOCORP

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BAJAJ

TVS

YAMAHA

SUZUKI

HONDA

Brief history of various players of industry:

ROYAL ENFIELD:

The concept of Royal Enfield bikes in India began with the Indian army

placed an order for these motor cycles. Since the UK factory was unable to meet

the demand, Madras motors in India took up the responsibility to assemble them.

Royal Enfield India made its debut in 1949 with the launch of the 350cc bullet.

Royal Enfield bikes were marketed by Madras motors. On rising demands for

rising indigenous bikes, the manufacturing of Royal Enfield bikes parts began at

Madras motors

SCOOTERS:

Bajaj Auto Ltd.: It is the second largest manufacturers of scooter in the world.

Bajaj auto started in collaboration with PIAGGIO in 1960 till they parted ways in

1971. But the Bajaj scooter still retains the original Italian design. In the two-

wheeler segment there has been very title change in the technology and so the

technology gap is smaller.

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MOTOR CYCLES:

Hero MotoCorp Ltd.: The Company was promoted by Hero cycles (p) Ltd. In

1984, in collaboration with Honda company, Japan. This was the second

Japanese 100cc mobile to enter the Indian market, the first being TVS-SUZUKI,

Hero MotoCorp (formerly Hero Honda Motors Ltd.) introduced Hero Honda CD-

100, which was the first four-stroke motor cycle to be introduce in India in the

100cc range.

.

TVS MOTORS LTD.: TVS Motor Company is the third largest two-wheeler

manufacturer in India and one among the top ten in the world, with annual

turnover of more than USD 1 billion in 2008-2009, and is the flagship company

TVS Motor currently manufactures a wide range of two-wheelers from mopeds to

racing inspired motorcycles.

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CHAPTER – 2

RESEARCH DESIGN

“BRAND REPSOITIONING OF ROYAL ENFIELD IN

BANAGALORE CITY’’

a) Scope of the project:

1. Finding out the strength and weakness attributed to ROYAL ENFIELD,

where it can correct its faulty facts.

2. Finding the number of future purchases.

3. Finding the market potential & reposition of this vehicle.

4. Finding the position of the vehicle among the competitors.

5. Finding the perception of consumers about the vehicle.

Objective of the study:

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1. To review the brand positioning strategies of different sub-brands

of Royal Enfield.

2. To analyze the brand repositioning strategies of Royal Enfield.

3. To study consumer awareness and perception about the brand

repositioning strategies of Royal Enfield.

4. To recommend suitable measures to be taken by the Royal Enfield

Company to further improve its brand perception and loyalty among its

customers

5. Other suggestions based on the finding for the improvement.

METHODOLOGY OF STUDY:

I. Sampling Design

A part of population is known as a sample and drawing a sample from

larger population is called sampling.

A good sample should be representative, accurate and precision sampling can

be categorized into two generic types:

a) Probability sampling

b) Non probability sampling

Sample procedure for the project work

The sampling method used is convenience sampling, a category of non-

probability sampling since the respondents were chosen by me and were not

provided by the company. The area of sampling is in Bangalore City.

Sample size for project work

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It is impossible to collect the response from the total population due to limitation

of time. The total sample size taken for survey is 50 respondents.

II Method of data collection

The relevant data was collected from both primary sources and

secondary sources. The starting point of my information gathering has been the

secondary sources such as internet, books, and journals and so on.

First, I made a study of the brand positioning and repositioning strategies of

through Royal Enfield bike secondary sources such as internet, insurance

magazines, and journals and so on. Then I conducted a consumer awareness

survey on brand repositioning strategies undertaken by Royal Enfield in recent

times

III Designing for Questionnaire:

The designing of questionnaire needs precision and classifies of the subject. So

that respondent easily understands the questions and will reply the answers

sincerely and correctly. The concept of sealing is used to know the satisfactory

level for the Royal Enfield with users.

IV Field works for project:

The fieldwork for the project was carried on for one month in Bangalore

City. The fieldwork schedule contained structured set of questions to be

answered by respondents to suit the objectives of the project.

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The respondents were contacted at place like colleges, offices, residences, and

service station and in ROYAL ENFIELD showroom. The respondent’s interaction

was for a time period 5-15 minutes.

V Analysis of the data:

The data for analysis of project was collected from both the primary and

secondary source.

The data thus collected during the interaction with respondents were organized,

processed and edited before tabulating and drawing the inference from them.

The data so got was analyzed using statistical methods and techniques like

tables, percentages, averages etc and interpret them properly and came to

conclusions, Graphical representation of data was done.

VI Research instruments

Research instruments or tools are used in the process in order to find out

respondents perception towards royal enfield and two wheelers. Research

instruments are also used for gathering necessary data for the subject.

The instruments used in the research are:

Questionnaires

Direct interview.

VII Limitation of the project:

1. Project work and study is confined to Bangalore City only.

2. The data was collected only from 50 respondents. Their feeling and views are

portrayed in a statistical and graphical manner. This it can be a limitation.

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3. The overall sample size is 50. Hence this is not to be a truly representative.

4. Due to time constraints I wasn’t able to spend much for detailed investigation.

5. Many of the respondents neglected to answer some questions and the

information provided by them are very less and vague.

6. The respondents may not have provided the exact details

CHAPTER - 3

COMPANY PROFILE

Company:

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

for, and R---segment of the market in India by leaps and bounds. Its exquisite

range of Motorcycles Company with power, riding comfort and ruggedness to

deliver a unique motorcycling experience

The Beginning:

Royal Enfield India was set up in 1955 when it started receiving 350 cc bikes

in kits from then in Chennai, India. But eventually the entire bike was

manufactured in India and a company started manufacturing the 500 cc Bullet.

By its sheer power, unmatched stability, and rugged good looks, the bullet

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dominated and continues to dominate the Indian roads. It’s every motorcyclist in

India with even the Indian Army and Police endorsing the Bike.

.

ORIGIN OF THE ORGANIZATION

George Townsend can be considered as the earliest pioneer who aided the

set up of Royal Enfield range of Two Wheelers He sets up a mill called Givry

Works in Hunt End, England. And 20 years later, Forest, George’s step-son

brings into the factory one of the first “boneshakers”, a quasi-cycle with an iron

backbone, wooden wheels, iron tires and pedals of wood.

But it was RW Smith and Albert Eadie who marked the birth of the Enfield

brand. RW Smith and Albert Eadie took control of Townsend’s and re-christened

it “The Eadie Manufacturing Company”. Soon, they stumble upon a contract with

Royal Small Arms factory in Enfield, Middlesex to supply precision rifle parts for

the making of Enfield rifles. Meanwhile, they make their first new bicycle-called

the “Enfield”. The Enfield is marketed through a new company- The Enfield

Manufacturing Company Ltd. A year later, the cycles were launched publicly and

the company added the word “Royal” to the name. With that, the legendary

trademark –“Build like a Gun” appeared for the first time. This marked the birth of

the Royal Enfield brand.

India had the first touch of the Royal Enfield range when two young

businessmen, Mr. Sundaram and Shankar, of the Madras Motor Company

started importing the Bullet motorcycles into the southern port city Madras, India

under Enfield India Limited Incorporated.

The first plant was set up at Madras, India, thus marking the beginning of the

era of motorcycling in India. At first, kits were sent to India and were assembled

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here. Then, mudguards and frames followed. Soon, Enfield began sending

engine kits for assembly.

And before long, they too were being made indigenously, meaning the entire bike

was being manufactured in India.

When the Government decided to impose stringent norms for emission Royal

Enfield was the first motorcycle manufacturer to comply. Royal Enfield is

amongst the first few Indian companies to obtain the WVTA (Whole Vehicle Type

Approval) for meeting the European Community norms.

Infrastructure and Technology Collaborations:

To manufacturer quality bikes that are well known worldwide for their

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

what Royal Enfield has done at their Chennai manufacturing facility.

An active in-house Research & Development wing is constantly at work to

meet changing customer preferences and the challengers of Indian and

International environment standards. When introducing a new product, this team

undertakes will related planning which includes a rigorous customer contact

program, design, concurrent engineering and testing process. The bike

Designers work continuously to come up with innovative bikes designs to meet to

the market’s expectations

Royal Enfield was also amongst the first Indian companies to introduce

Enterprise Resource Planning (ERP) systems to manage its operations. It also

has online supply chain management system in operation.

Collaborations:

Royal Enfield has technology tie-ups with:

AVL of Austria

Fritz Egli of Switzerland

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Cranfield University, UK

Criterion Engineers UK

Manufacturing:

Royal Enfield’s manufacturing operations; go through a series of

modernization and improvement efforts, with a number of automated processes.

The company has put place modern manufacturing practices like Cellular

Layouts, Statistical process controls and Flexible manufacturing systems.

The Chennai manufacturing facility has received the ISO 9001 Certification

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

the ISO 14001 – quality Certificate.

Marketing Network:

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

thought process has driven Royal Enfield to set up has a wide network of 13

marketing offices,223 dealers in all major cities and towns, 25 spare parts

distributors and stockiest and 150 Authorized Service Centers. The Company

also exports motorcycles to over 30 countries like the USA, Japan, Bahrain, UK,

Germany and many European countries through 5 international offices, 25

importers and over 200 dealers across the globe.

PRESENT STATUS OF THE ORGANIZATION

Essco Limited, part of the Rs. 1200 crores Essco Group, has achieved

dramatic progress in its turnaround strategy, reporting a cash profit of Rs. 16

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crores in the financial year ended March, 2009 as against a cash loss of Rs. 21.2

crores in the previous year.

While Gross Sales have increases 9.9% to Rs. 634.6 crores from Rs. 577.4

crores in the previous year, net sales are up 11.4% to Rs. 550.5 crores from Rs.

494 crores in the previous year. The company’s profit before interest and

depreciation also improved dramatically to Rs. 40.8 crores from Rs. 2.7 crores in

the previous year.

The comparative market share of the Motorcycle manufacturers during the year

ended 31 March 2011 are as follows:

Motorcycles 2010-2011 2011-2012 Change in

MS

Royal Enfield Motors 0.8 1.0 -0.2

Hero MotoCorp Ltd. 48.3 47.8 0.6

Honda Motors Ltd. 1.5 0.0 1.5

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Suzuki Motors Ltd. 1.5 1.7 -0.2

Bajaj Auto Ltd. 24.5 25.2 -0.6

TVS Motor Company Ltd. 15.3 16.4 -1.2

Yamaha Motor India (P) Ltd 8.0 7.9 0.1

Total 100.00 100.00 0.0

OGANIZATIONAL CHART

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ROYAL ENFIELD BIKES & SPECIFICATIONS:

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THUNDERBIRD 500

ENGINE TYPE Single Cylinder, 4 Stroke, Twinspark, Air CooledDISPLACEMENT 499ccMAX. POWER 27.2 bhp @ 5250 rpmMAX. TORQUE 41.3 Nm @ 4000 rpmENGINE START Electric/ KickGEARBOX 5 Speed Constant MeshSUSPENSION Front – Telescopic

Rear - Twin gas chargedDIMENSIONS (lxbxh) 2060mm x 790mm x 1205mmBRAKES Front – 280mm disc, 2 piston caliper

Rear – 240mm disc, Single piston caliperGROUND CLEARANCE

140mm

WEIGHT 195 kgsFUEL CAPACITY 20 liters

CLASSIC 500

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ENGINE TYPE Single Cylinder, 4 Stroke, TwinsparkDISPLACEMENT 499ccMAX. POWER 27.2 bhp @ 5250 rpmMAX. TORQUE 41.3 Nm @ 4000 rpmENGINE START Electric/ KickGEARBOX 5 Speed Constant MeshSUSPENSION Front – Telescopic



135mm

WEIGHT 190 kgsFUEL CAPACITY 13.5 liters

BULLET 500

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ENGINE TYPE Single Cylinder, 4 StrokeDISPLACEMENT 499ccMAX. POWER 27.2 bhp @ 5250 rpmMAX. TORQUE 41.3 Nm @ 4000 rpmENGINE START Electric/ KickGEARBOX 5 Speed Constant MeshSUSPENSION Front – Telescopic


Rear – 153mm disc, Single leadGROUND CLEARANCE

135mm


THUNDERBIRD 350

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ENGINE TYPE Single Cylinder, 4 Stroke, Twinspark, Air CooledDISPLACEMENT 346ccMAX. POWER 19.8 bhp @ 5250 rpmMAX. TORQUE 28 Nm @ 4000 rpmENGINE START Electric/ KickGEARBOX 5 Speed Constant MeshSUSPENSION Front – Telescopic



140mm

WEIGHT 195 kgsFUEL CAPACITY 20 liters

CLASSIC 350

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ENGINE TYPE Single Cylinder, 4 Stroke, TwinsparkDISPLACEMENT 346ccMAX. POWER 19.8 bhp @ 5250 rpmMAX. TORQUE 28 Nm @ 4000 rpmENGINE START Electric/ KickGEARBOX 5 Speed Constant MeshSUSPENSION Front – Telescopic


Rear – 153mm drum, Single leadGROUND CLEARANCE

135mm


BULLET ELECTRA TWINSPARK

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ENGINE TYPE Single Cylinder, 4 Stroke, TwinsparkDISPLACEMENT 346ccMAX. POWER 19.8 bhp @ 5250 rpmMAX. TORQUE 28 Nm @ 4000 rpmENGINE START Electric/ KickGEARBOX 5 Speed Constant MeshSUSPENSION Front – Telescopic


Rear – 153mm drum, Single leadGROUND CLEARANCE

135mm


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CH APTER IV

DATA INTERPRETATION

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE

TABLE: 1

Age No. Of Respondents PercentageBelow-20yrs 10 20%20yrs-35yrs 34 68%35yrs-50yrs 4 8%Above50yrs 2 4%Total 50 100

Analysis

Majority of the respondents belongs to the age group between 20-35

(68%).

The next highest number of respondents belongs to the age group below

20(20%), 8 % of the respondents are between 35-50 of age and Just 10 %

respondents are above 50 years of age.

Inference

Hence it can be inferred that majority respondents are between age group of 20-35 years

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GRAPH – 1

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE

Conclusion:

From the above graph it can be concluded that majority of the respondents belong to the age category of 20 – 35 years.

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TABLE: 2

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF GENDER

Analysis

From the about table which is prepared through primary suryey, it is clear that majority respondents are male who occupy 88% of the total sample and females occupy 12%.

, Inference

Hence it can be inferred that majority respondents are Males

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GENDER No. Of respondents Percentage Male 44 88 Female 6 12 Total 50 100

30


GRAPH – 2

CLASSIFICATION OF RESPONDENTS ON THE BASIS GENDER

Conclusion:

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The above graph clearly shows that majority respondents are males compared to females

TABLE 3:

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION

Occupation No of respondents PercentageBusiness 10 20%Student 16 32%Govt. employee 4 8%Professional 2 4%Pvt. Employee 10 20%Politics 8 16%Total 50 100%

Analysis

Maximums of 32 % of the respondents belong to this study category.

Another 20 % are pvt.employees. Businessman occupies 20 % share of the

respondents.

8 % of the Govt. employees. Politician occupies 16 % and another 4% are

professionals of the total sample survey

Inference

From the above table it can be inferred that the majority respondents are Students who occupy 32% of the total respondents of survey.

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GRAPH 3

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION

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Conclusion:

From the above graph it can be concluded that the majority respondents are Students who occupy 32% of the total respondents of survey.

TABLE –4

CLASSIFICATIONS OF RESPONDENTS ON THE BASIS OF INCOME

Analysis

From the above table it is analysed that 56 % of the respondents have an annual

income between Rs 100000-500000, 36 % earns between 0-100000 in a year,

8% earn above 500000.

Inference

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Income No. Of respondents

Percentage

0-100000 18 36%100000-500000 28 56%Above 500000 4 8%

Total 50 100%

34


Hence it can be inferred that majority respondents belongs to an income group of 100000-500000 and category belonging to 500000 and above does not prefer royal enfield much.

GRAPH 4

CLASSIFICATION OF RESPONDENTSON THE BASIS OF INCOME

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Conclusion:

From the above graph it can be concluded that the respondents belonging to the income group Rs 100000 – Rs 500000 prefer to buy a royal enfield bike.

TABLE 5

CLASSIFICATIONS OF RESPONDENTS ON THE BASIS OF AWARENESS OF VARIOUS BRANDS OF TWO WHEELERS

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Brand name No of respondents

Percentage

Royal Enfield 50 100%Suzuki 50 100%Bajaj 50 100%Honda 50 100%Hero 50 100%

Analysis

The above mentioned brand names of two wheeler are well popular and the survey depicts that all the respondents are very much aware of these brands of two wheelers.

Inference

Hence it can be inferred that majority respondents are aware of various brands of two wheelers are equal.

GRAPH 5

CLASSIFICATION OF RESPONDENTS ON THE BASIS OFAWARENESS OF VARIOUS BRANDS OF TWO WHEELERS

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Conclusion:

Hence it can be concluded that majority respondents are aware of various brands of two wheelers are equal.

TABLE 6

SHOWING MARKS GIVEN BY RESPONDENTS TO VARIOUS ATTRIBUTES OF TWO WHEELERS

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Attributes Excellent Good Average TotalAesthetics 18 30 2 50Mileage 22 18 10 50Power and pick 38 12 0 50Riding comfort 32 16 2 50Maintenance 26 22 2 50Road grip 34 16 0 50Price 12 18 20 50After sale service 19 29 2 50Resale value 20 18 12 50Availability of spares 18 26 6 50Brand loyalty 29 19 2 50

Analysis

According to the survey 76 % respondent have given maximum importance to

power and pick. The next most important attribute respondents look for in a bike

is road grip according to 68 % respondent. Riding comfort is also one of the most

important attribute people look for in the bike according 64 % respondent. During

aesthetics, mileage, availability of spares and maintenance are among the next

essential attributes in a bike are the other important attributes.

Inference

From the above table it can be inferred that majority respondents see Power and pick up of the bike followed by road grip.

GRAPH 6

SHOWING MARKS GIVEN BY RESPONDENTS TO VARIOUS ATTRIBUTES OF TWO WHEELERS

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Contd….

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Conclusion:

From the above table it can be concluded that majority respondents see Power and pick up of the bike followed by road grip and other attributes of two wheeler. .

TABLE 7

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SHOWING PREFERENCE OF RESPONDENTS REGARDING TWO WHEELERS BASED ON VARIOUS ATTRIBUTES

Attributes ROYAL ENFIELD

Honda Bajaj Hero Suzuki Total

Good Power & mileage

20% 8% 32% 40% 0% 100

Riding comfort 68% 16% 4% 8% 4% 100

Aesthetics 44% 4% 20% 28% 4% 100

Road grip 72% 8% 4% 16% 0% 100

Safety and durability 52% 8% 20% 20% 0% 100

Good after sales service

24% 4% 24% 48% 0% 100

Maintenance 44% 6% 20% 28% 2% 100

Reasonable price and resale value

36% 12% 28% 24% 0% 100

Analysis

TASMAC COLLEGE 42


According to 100% of the respondents ROYAL ENFIELD is the most preferred

vehicle for aesthetics and riding comfort. ROYAL ENFIELD is the best as per

72% respondents for aesthetics ,riding and road grip and rest supporting the

other brand of two wheelers.

ROYAL ENFIELD is the best in safety and durability capacity according to 52%

respondents. HERO is also best vehicle that can be ridden on any kind of roads

according to 48 % respondents.

ROYAL ENFIELD has the good aesthetics, the next best being HERO with 28%

and rest respondents supporting the other brand vehicles.

ROYAL ENFIELD, according to 50 % respondents is the most preferred for riding

comfort and road grip.

Maximum of 40 % of the respondents finds ROYAL ENFIELD the safest and the

most durable 2 wheeler. ROYAL ENFIELD as per 20 % respondents has low

operating and maintenance cost.

ROYAL ENFIELD has the most resale value according to 40% of the sample

survey. BAJAJ is the next best according to 40 % respondents.

The easiest availability of spares and good after sales service is provided by Bajaj

according to 35 % of the respondents; only 30 % respondents opted for ROYAL

ENFIELD for this attribute.

Inference

Hence it can be inferred that majority respondents prefer ROYAL ENFIELD followed by HERO and other brands of two wheelers.

TASMAC COLLEGE 43


GRAPH 7

SHOWING PREFERENCE OF RESPONDENTS REGARDING TWO WHEELERS BASED ON VARIOUS ATTRIBUTES

Good power and mileage

Conclusion:

From the above graph it can be concluded that hero has a good power n mileage compared to other two wheeler brands

TASMAC COLLEGE 44


Riding comfort

Conclusion:

The above bar graph clearly shows that ROYAL ENFIELD has the best riding comfort compared to honda, hero and other two wheelers.

TASMAC COLLEGE 45


Aesthetics

Conclusion:

From the above graph it can be clearly concluded that ROYAL ENFIELD has good aesthetics out of all the other two wheelers.

TASMAC COLLEGE 46


Road grip

Conclusion:

The above bar graph shows that ROYAL ENFIELD has a better road grip compared to honda , bajaj. Hero and suzuki.

TASMAC COLLEGE 47


Safety and durability

Conclusion:

From the above graph it can be concluded that majority of the respondents feel ROYAL ENFIELD has a good road grip and is durable than other two wheelers.

TASMAC COLLEGE 48


Good after sale service

CONCLUSION:

From the above graph it can be concluded that hero has a good after sale service compared to other two wheeler.

TASMAC COLLEGE 49


Maintenance

Conclusion:

The above graph clearly shows that the maintenance of ROYAL ENFIELD is much better than other two wheelers in the market.

TASMAC COLLEGE 50


Reasonable price and resale value

Conclusion:

The above graph clearly shows that ROYAL ENFIELD has reasonable price and a good resale value.

TASMAC COLLEGE 51


TABLE 8

SHOWING WHETHER RESPONDENTS HAVE ANY FUTURE PLANS OF PURCHASING 2 WHEELERS

No of respondents PercentageYes 32 64No 18 36Total 50 100

Analysis

Regarding plans of purchasing two-wheeler in future 64% of the 100 respondents

had intentions of buying a two-wheeler 36 % of non-user respondents had no

plans of buying a two-wheeler.

Inference

From the above table, it can be concluded that majority respondents have plans

of purchasing two wheeler.

TASMAC COLLEGE 52


GRAPH 8

SHOWING WHETHER RESPONDENTS HAVE ANY FUTUREPLANS OF PURCHASING TWO WHEELERS.

Conclusion:

TASMAC COLLEGE 53


From the above table, it can be concluded that majority respondents have plans

of purchasing two wheeler.

TABLE 9

SHOWING REASONS FOR NOT BUYING TWO WHEELERIN FUTURES

Reason No of respondents

Percentage

Already possessing 8 44.44 %Finance problem 3 16.66%High price 2 11.11%To buy car 5 27.77%Total 18 100%

Analysis

44.44% already possessed the vehicle, 16.66% had finance problem and

11.11%due to the high price of two-wheeler, 27.77% opted to go for car.

Respondents to own a vehicle in near future against a small portion of 30% who

did not want a vehicle due to finance problem, high price, non-affordability etc.

but major cause of not buying was because they had finance problem and

already possessed one.

TASMAC COLLEGE 54


Inference

Hence it can be inferred that majority respondents have a vehicle already possesing and finance problems which is a main factor in not purchasing two wheeler.

GRAPH 9

SHOWING REASONS FOR NOT BUYING TWO WHEELERIN FUTURES

TASMAC COLLEGE 55


Conclusion:

Hence it can be concluded that majority respondents have a vehicle already possesing and finance problems which is a main factor in not purchasing two wheeler.

TABLE 10

SHOWING PREFERENCE IN CHOICE OF BRAND OF BIKE

Brands No of respondents PercentageROYAL ENFIELD 26 52%HONDA 7 14%HERO 8 16%BAJAJ 9 18%SUZUKI 0 00TOTAL 50 100%

Analysis

A maximum of 52% of the nonuser respondents wanted to buy ROYAL ENFIELD.

The other brand names preferred are BAJAJ by 18%, HERO by 16% and

HONDA by 14% of the respondents.

Inference

TASMAC COLLEGE 56


Hence it can be inferred that majority respondents prefer ROYAL ENFIELD and followed by various other brands of two-wheelers.

GRAPH 10

SHOWING PREFERENCE IN CHOICE OF BRAND OF BIKES

TASMAC COLLEGE 57


Conclusion:

From the above graph it can be concluded that respondents show much preference fr ROYAL ENFIELD than other two wheeler brands.

TABLE 11

SHOWING IN CHOICE OF VARIOUS MODELS OF ROYAL ENFIELD

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Models No of respondents PercentageCLASSIC 500 UCE 14 28%

CLASSIC 350 UCE 6 12%

BULLET ELECTRA 350 UCE

4 8%

BULLET 350 UCE 2 4%

THUNDER BIRD UCE

24 48%

Total 50 100

Analysis

Among 48% of the respondents preferred to own THUNDER BIRD UCE,

And 28% preferred CLASSIC 500 UCE, .CLASSIC 350 UCE is preferred by

12%.BULLET ELECTRA 350 UCE is preferred by 8% and only 4% respondent

preferred BULLET 350 UCE.

Inference

Hence it can be inferred that majority respondents preferred to own thunder bird

compared to other models of ROYAL ENFIELD..

GRAPH 11

TASMAC COLLEGE 59


SHOWING PREFERENCE IN CHOICE OF VARIOUS MODELS OF ROYAL ENFIELD

CONCLUSION:

From the above graph it can be concluded that respondents prefer buyin Thunder bird than other models of ROYAL ENFIELD.

TABLE 12

TASMAC COLLEGE 60


SHOWING REASONS FOR BUYING ROYAL ENFIELD

Reasons No of respondents PercentageAesthetic 22 44%Riding comfort 10 20%Power and pick up 6 12%Road grip 4 8%Brand loyalty 8 16%Total 50 100%

Analysis

Among 100 users a maximum of 31 % opted for ROYAL ENFIELD for more best

aesthetic, the next riding comfort (20% users), 12% users prefer ROYAL

ENFIELD for power and pick up. 8% of the sample survey choose ROYAL

ENFIELD for brand loyalty respectively.

Inference

Hence it can be inferred that majority respondents preferred to buyROYAL ENFIELD because of its best aesthetic , riding comfort , brand loyalty etc.

GRAPH 12

TASMAC COLLEGE 61


SHOWING REASONS FOR BUYING ROYAL ENFIELD

CONCLUSION:

Hence it can be concluded that majority respondents preferred to buyROYAL ENFIELD because of its best aesthetic , riding comfort , brand loyalty etc.

TABLE 13

TASMAC COLLEGE 62


SHOWING SOURCES OF INFORMATION ABOUT ROYAL ENFIELD

Media No of respondents PercentageInternet 10 20%Demo and display 12 24%Family & Friends 24 48%Print Media 4 16%Total 50 100%

Note: Respondents have given multiple answer choices

.

Analysis

The major source of information through which people got to know more about

ROYAL ENFIELD are family and friends 48%, print media 24% and through

internet 20% others 16% are also effective source of information to the public.

Inference

Hence it can be inferred that majority respondents received the information by family and friends.

TASMAC COLLEGE 63


GRAPH 13

SHOWING SOURCES OF INFORMATION ABOUT ROYAL EFIELD

Conclusion:

From the above graph it can be concluded that majority respondents received the information by family and friends.

TASMAC COLLEGE 64


TABLE 14

SHOWING WHETHER THE USERS FACED ANY PROBLEM WITH ROYAL

ENFIELD?

No of respondents PercentageYes 8 16%No 42 84%Total 50 100%

Analysis

Among the total number of users 84% did not face any problem with the bike and

its performance. A minority of 16 % respondents faced a few problems.

Inference

Hence it can be inferred that majority respondents did not faced any problems with ROYAL ENFIELD.

TASMAC COLLEGE 65


GRAPH 14

SHOWING WHETHER THE USERS FACED ANY PROBLEM WITHROYAL ENFIELD?

Conclusion:

From the above graph it can be concluded that majority respondents did not faced any problems with ROYAL ENFIELD.

TASMAC COLLEGE 66


TABLE 15

SHOWING DIS-SATISFACTION FACED BY ROYAL ENFIELD USERS

No of respondents

Percentage

Power and pick up 22 44%Resale value 06 12%Mileage 10 20%Price 08 16%After sale service 04 8%TOTAL 50 100%

Analysis

From the above table it is clear that 44% of respondents were not satisfied with the power and pick up , 20% were not satisfied with the milage, another 16% of the respondents were dis- satisfied with the price, 125 were not satisfied with the resale value and 8% of the sample were dis- satisfied with after sale service.

Inference

Hence it can be inferred that majority respondents are not satisfied by mileage and followed by various other attributes.

TASMAC COLLEGE 67


GRAPH 15

SHOWING DIS-SATISFACTION FACED BY ROYAL ENFIELD USERS

Conclusion:

From the above graph it can be concluded that majority of the respondents are not satisfied with the power and pick-up of ROYAL ENFIELD.

TASMAC COLLEGE 68


TABLE 16

SHOWING SUGGESTIONS GIVEN BY RESPONDENTS REGARDING IMPROVEMENT OF ROYAL ENFIELD

Suggestion No of respondents

Percentage

Reduce price 14 28%Increase mileage 10 20%Reduce weight 8 16%

Duration of delivery 4 8%Increase pickup 6 12%Increase advertisement 4 8%Models for females 4 8%Total 50 100%

Analysis

The respondents have suggested various improvements in ROYAL ENFIELD

28% of respondents want to reduce the price, and 20% wants to increase

mileage. Reduction of weight is by suggested by 16%, 12% wants an

improvement in pickup.

8% wants to release models for female, another 8% wants more and more

advertisements in various media’s and another 8 % suggested to deliver as soon

as possible.

TASMAC COLLEGE 69


This implies that most of the respondents have a compliment regarding the

aesthetics given by ROYAL ENFIELD and the road grip of ROYAL ENFIELD

bikes. Thus care should be taken on the above.

Inference

Hence it can be inferred that majority respondents suggested for increase in mileage and various other aspects.

GRAPH 16

SHOWING SUGGESTIONS GIVEN BY RESPONDENTS REGARDING IMPROVEMENT OF ROYAL ENFIELD

TASMAC COLLEGE 70


Conclusion:

The above graph clearly shows that most of the respondents suggest to reduce the price of ROYAL ENFIELD bikes.

TABLE 17

SHOWING SUGGESTIONS GIVEN BY RESPONDENTS REGARDING THE FEEL OWING A ROYAL ENFIELD

Suggestion No of respondents

Percentage

Very proud 14 28%

TASMAC COLLEGE 71


Very confident 11 22%Energetic and powerful 12 24%

Stylish 4 8%Satisfied 6 12%Average 2 4% Not good 1 2%Total 50 100%

Analysis

The respondents have suggested their feelings owing a ROYAL ENFIELD . 28%of

respondents feel proud, and 22% feel very confident. 24 % feel very energetic

and powerful, 8% feel stylish , 12% feel satisfied and another 6% have an

average and unsatisfactory feeling.

This implies that most of the respondents feel proud confident and very energetic

owing a ROYAL ENFIELD.

Inference

Hence it can be inferred that majority respondents feel proud owing royal enfield bike.

GRAPH 17

SHOWING SUGGESTIONS GIVEN BY RESPONDENTS REGARDING YHE FEEL OWING A ROYAL ENFIELD

TASMAC COLLEGE 72


Conclusion:

The above pie chart clearly shows that majority respondents feel very proud owing a ROYAL ENFIELD bike.

CHAPTER – V

Summary of Findings

TASMAC COLLEGE 73


FINDINGS

Based on the statement of the problem and objectives of the study:-

1) The survey reveals that all the consumers are aware of all mentioned brands

of two wheelers in the market.

2) It is found that reduction in the price and increase in mileage is the most

important attributes consumer looks for before deciding to purchase a two

wheeler. Maintenance, riding comfort; road grip and availability of spares are also

given due importance.

3) The respondents find the aesthetic, road grip are the most satisfying

attributes in ROYAL ENFIELD. These two are the main reasons for the

consumers to opt for ROYAL ENFIELD. The survey also reveals that ROYAL

ENFIELD is one of the most preferred TWO WHEELERS among the various

brands mentioned in the questionnaire.

4) The main reasons for purchasing ROYAL ENFIELD is its best aesthetic, good

riding comfort, and road grip.

5) According to survey all the respondents are aware of the different brands of

two wheelers available in the market.

6) Survey says that a ROYAL ENFIELD bikes has to improve its power and

pickup and durability increasing more pickup etc. it should maintain it power,

pickup and increase mileage.

TASMAC COLLEGE 74


7) .Majority of 48% of the users got the information about the bike from their

family and friends followed by demo and display and internet according 24% 20%

respectively. This states that internet, family and friends demo and display etc.

are the effective sources of advertising.

8) From the 30 users a majority of 7% had some complaints regarding the bikes.

They faced high fluctuation in mileage problems. To avoid such complaint users

suggested conducting frequent free check up camps and guidance regarding the

care and proper maintenance of the bikes.

9) The study reveals that 5% of the respondents wants increase in pickup,

followed by 25% wants increase in mileage, 15%of the total respondents wants

its maintenance to be low. 10% wants after sale service. 10% are not satisfied

with the price. This shows that the bike have high price, low pickup, Low

mileages etc are the weakness of the bikes

.

FINDINGS FOR ROYAL ENFIELD

Among the 50 respondents, everyone is aware of Royal Enfield and as this report

is limited to few places in Bangalore it is better for Royal Enfield to come up with

more promotional activities.

According to the respondents are aware of ROYAL ENFIELD, 10% say it is

excellent, 50% as good and 10 % as bad, and 30% as average.

This shows that majority of respondents have a positive and good opinion about

ROYAL ENFIELD sales and ambience.

CHAPTER – VI

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RECOMMENDATIONS & SUGGESTIONS

Technical suggestions

1. The bike has a four-stroke engine; it is expected to give good mileage. The

bike should give at least 35 – 40 kilometers per liter under city riding conditions.

As against 45 kms declared by the company.

2. Brakes and road grip of the bikes need to be maintained which is excellent.

3. The vehicles are expected to have lower maintenance cost which makes the

customers feel happy.

4. Seating arrangement of the vehicle is the most comfortable preferred by all.

5. Royal enfield should be released with new attractive colours.

Commercial suggestions:

1) The high price is one of the major barriers. The bike should be priced

below Rs 80,000, (including accessories) which will increase the sales.

2) ROYAL ENFIELD should advertise their new models in T.V, media to

create awareness and attract some more consumers and also company should

give more and more advertisements about the product in different media’s like

print media, so that it will reach and every one.

TASMAC COLLEGE 76


3) Young people prefer two wheelers than others. So the advertisement and

sales promotion should be aimed towards them.

4) The waiting period for the delivery of the vehicle should be reduced.

5) More authorized service station should be opened in city limits.

TASMAC COLLEGE 77

Documents

A Study of Assessment of Brand Repositioning on Rayal Enfield