Royal Enfield Final - Copy

BRAND AWARENESS TOWORDS ROYAL ENFIELD

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CHAPTER – 1

GENERAL INTRODUCTION

Introduction to marketing:

Marketing consists of all activities by which a company adapts itself to its

environment creativity and profitably. It is the whole business seen from the point

of view of its final result that is from customer’s point of view. Basically business’s

job is to convert societal needs into profitable opportunities. Marketing is an

attempt to anticipate satisfies the needs, wants and demands of the consumers

or the society.

Philip Kotler has said “Marketing is determining the needs and wants of

target markets and delivering the desire satisfaction more effectively and

efficiently than competitors”. Thus goes to show that consumer is the key to the

success to any company’s marketing services.

Evolution of marketing:

The development of marketing concept is evolutionary. The evolution of

marketing is one of the oldest professions of the world.

Marketing is both philosophy and a technology. As a philosophy, it guides

and directs the business thinking i.e. whether to produce or not to produce. As a

technology it is concerned with deciding what should be produced, how and

when products could be most efficiently distributed among the customer. Hence

we can say that producers have to face the changing conditions caused by

human behavior. The entire history at development accounts for the changes

caused by change in human behavior and it with the marketing concepts is due

to change in human behavior.

NEW HORIZON COLLEGE 1


Distinction between Market & Marketing:

Market is an arrangement providing an opportunity to exchange goods. In

the market forces of demanded supply operate directly by means of

communication and fix prices. Whereas marketing is sum totals of all those

activities that is related to free flow of goods from the points of production to

consumption. Physical movements of goods are the hallmark of marketing. That

is once the price fixation is done, the journey is to start from seller and end at

buyers.

Under the marketing concept the different heads and concepts studies are:

1. Production concept

2. Societal concept

3. Product concept

4. Selling concept

5. Need wants and demands.

The marketing concept is a business philosophy that challenges the previous

concepts. It meets the needs profitably and helps in finding the wants to fulfill

them.

1) Societal marketing concept holds that the organization’s task is to determine

needs wants and interest of targets markets and to deliver the desired

satisfaction more effectively than competitors in a way that preserves enhances

all the consumers and society’s well being.

2) Production concept says that consumers will favour those products that are

widely available and low cost. Managers of production oriented organization

concentrate on achieving high production efficiently and wide distribution

coverage.



3) Production concept holds that consumers will favour those products that

offer the most good quality, performance or innovative features.

4) Selling concepts holds that consumers, if left alone, will ordinarily not buy

enough of the organization’s products. The organization must therefore

undertake an aggressive selling and promotion effort.

5) Wants and demand concepts say that a human need is a state of felt

deprivation of some basic satisfaction? Wants are desired for specific satisfies of

these needs. Demands are wants for specific products that are backed by an

ability and willingness to buy them.

Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating, offering and exchanging

products of value with others. Hence the important of marketing arises.

Here different Heads studies are:

1. Analyzing Market opportunities.

2. Researching and selecting target Markets and positioning the offer.

3. Planning Market Demand

4. Current marketing situation.

A firm due to constraints on resources cannot exploit all marketing

opportunities existing in marketing environment. As opportunities should have to

be diagnosed and evaluated to choose only accessible and feasible Marketing

opportunities.

A product should be designed to cater to requirements of specific market

segments known as target markets. It is required to conduct research to identify

the target market segments, which can be chosen by the firm.



Since marketing is consumer oriented it is necessary to assess the market

demand for a product so as to manufacture required quantity and supply at right

time.

All marketing activities should be organized and implemented keeping in mind

the current marketing situations, which can be determined by analyzing the entire

environment factor affecting process of marketing.

Marketing function is defined as an act operation or services by which original

product and the final consumer are linked together.

The concepts studied are:

1. Macro Environment

2. Buying functions

3. Methods of Buying

4. Estimating current demands:

Total Market potential

Area market potential

5. Marketing Mix

6. Segment of Market.

1) The macro environment of marketing consists of

a) Demography

b) Economy

c) Social and cultural

d) Political and legal

e) Technological



(a) The demographic environment of marketing studies is a scientific study of

human beings, populations and distribution. Quantitative elements such as age,

sex, education, occupation, income, etc are also studied here.

(b) The people constitute only one element of a market. The second essential

element of a market is purchasing power and willingness to spend by people

then only comes the effective demand. That is why the economic conditions play

a significant role in marketing.

(c) Social and cultural forces usually influence the welfare of a business concern

in the long run. The society is ever changing. New demands are oriented and old

ones are lost in due course. Hence marketing management is called upon to

mark necessary adjustments in marketing plans in order to fulfill new social

demands.

(d) Political and legal forces are important in marketing services, activities and

operation of business enterprise. Marketing systems are affected by

government’s Monetary and fiscal policies, import export duties and policies and

customs duties, anti-pollution lawn etc.

(e) Consumer purchases and the manner in which they are consumed reflect a

society’s life style. Technological forces help to shape changes in the style of

living of consumers. Marketing management with help of technology can create

and deliver standards, and style of life. It has the responsibility of relating,

changing life style patterns, values and changing technology to marketing

opportunity for profitable sales to particular market segments.



2) Buying is procurement of goods or services for eventual resale to the

consumers or industrial users.

Different functions are:

(a) Planning purchase of goods

(b) Contractual function

(c) Assembling

(d) Negotiation

(e) Contractual

a) Planning purchases of goods implies planning of purchases for the

organization or consumers.

b) Contractual function is concerned with searching for and determining the

sources of supply and establishing and maintaining contacts with them.

Establishment of relationship is with view to earn name and fame.

c) Assembling nears bringing together to collecting a large amount of similar

goods a many producers for resale in a single region. Assembling and buying are

not one and the same. Assembling brings together goods of same type from

different source where as buying involves purchase of variety of product.

d) Getting together of business buyers and suppliers with a view to discuss the

contents of contracts as the price, payments, quality can be said as negotiation.

e) Actual entering into contract to buy is end of buying function. The provisions

of sale of goods Act with which we operate the business to protect the will and



interest of parties of business. It binds both parties to that aggrieved party to get

justice for breach of contract by other.

3) Methods of buying:

Buying is the basic marketing activities. Good buying can be defined as buying

and right price. There are different methods of buying namely.

a) Concentrated buying: If purchases are confined to a very few sources of

supply, it is concentrated buying.

b) Diversified buying: When a buyer decides to buy good required from a large

number of suppliers it is know as diversified buying.

c) Reciprocal buying: The main idea of this is that the purchases are mutual

i.e. “You buy our products, and then we buy your products”.

4) MARKET POTENTIAL

Current and future market demands are determined by analyzing the entire

environmental factor affecting marketing process. The two way of estimating

demand are:

Total market potential: It is demand that exists for a product in all areas put

together. The demand may be for a product in all areas put together. The

demand may be for a product or service & the area may be for a state, country

and continent or may be the whole world itself.

Area Market potential: It is demand that exists for a particular product or service

in it particular area of market. Say Jayanagar in Bangalore or Sanjaynagar in

Bangalore etc.



5) In market planning we use marketing information to assess the situation. We

have to select specific marketing targets in form of market segments. For each

segment or diversion of the market formulate a combination of number of devices

or types of marketing activities that are coordinated into a single marketing

program to reach a particular target or market segment. The combination of

these is marketing mix. The basic marketing mix is blending of four inputs, which

form core of marketing system. They are:

a) Product mix: It is the thing possessing utility. It has four main components

namely product range, after sales service, brand and package.

b) Price mix: Price is the valuation placed upon the products by offered. It has to

cover pricing, discounts, allowance and terms of credit. It manly deals with price

competition.

c) Distribution mix: Distribution is the delivery of product and right to consume it.

It includes channels of distribution, transportation, and ware housing and

inventory control.

d) Promotion mix: Promotion is the persuasive communication about the product

by offer to the prospect. It covers advertising, personal selling, sales promotion,

publicity, public relations, and exhibition of demonstrations used in promotion.

Largely it deals with non-price competition.

Market consists of buyers & buyers differ in one or more respect. They may differ

in their wants, purchasing power, geographical location, buying attitudes &

practices. This varied complex is main cause of market segmentation. Hence it is



a method of achieving maximum market response from limited marketing

resources.

6). The different segmentation is:

Geographic Segmentation: Geographic location is usual & popular basis for

market segmentation. Further distinction as rural & urban markets, city &

suburban markets etc also form geographic segmentation

Demographic Segmentation: Demography is study of population.

Demographically characters such as sex, age, marital status, number & age of

children, place of residence, mobility, income, education, occupation, family life

cycle, social class, culture etc., make the base of demographic sub culture.

Psychographics Segmentation: Here buyers are divided into different groups

on the basis of social class, life style & for personality characteristics. People with

in same demographic group can exhibit very different psychographics profiles.



BRAND:

Product is the starting point of all marketing activities. Unless the policies

regarding the product are decided and the exact nature of the product are

decided not much can happen in marketing. One of them is “BRANDING”.

The word brand is a comprehensive term, which includes names, designs and

symbols. A brand is defined as a name, term, symbol, a design, or a combination

of them, which is intended to identify the goods of one seller or group of sellers

and to differentiate them from there of competitors.

Every manufacturer or seller feels the need of identifying his goods with some

definite symbol, mark, or slogan so that his goods catch the attention of the

consumers. Also, a manufacturer or a seller wants to establish certain definite

image in the mind of the public about the quality, durability, shape, fashion and

colour of his product.

Brand awareness has to be created in order to create an image in the minds of

the buyer. When a buyer purchases a product, he not only buys the product as

such but a particular brand of the product, this is because there is an image in

the mind of the buyer that a particular brand satisfies his need. Consequently,

creating brand awareness exceeds the customer and the sales of this brand than

those of the competing brands, which have not created such distinct image.

Hence branding is used invariably as a method of modern mass selling.

Meaning

A brand is symbol, a mark, a name that acts as a means of communications

which brings about an identity of a given product. A brand in short is an identifier

of the seller or the maker. A brand name consists of words, letter or numbers that

can be vocalized.



Brand mark is the visual representation of the brand like a symbol, design,

distinctive coloring or lettering. Brand creates a bond between the customer and

a product.

Definition:

According to American marketing association “A Brand is defined as a

name, item, sign, symbol or special design or some combination of these

elements that is intended to identify the goods or services of one seller or a

group of sellers. A brand differentiates these products from those of competitors”.

In the word of Philip Kotler “A brand is a name, term, sign, symbol or design or

combination of them. Intended to identify the goods or services of one seller or

group of sellers and to differentiate them from those of competitors”.

Role of Branding

In today’s world brand names come to create identity to distinguish one product

from another. The following points to pin down its precise role.

Brand is a massive asset: Brand is an intangible asset, because it is

impossible to duplicate brand name.

Brand is promotional tool: The product differentiation is done by a brand

through sales promotion.

Brand is a weapon to protect market: A consumer has tried and liked a

product; the brand enables him to identity the product and repeats the

purchase.

Brand is antidote for middle men’s survival: The class of middle man

always tends to go for a successful brand.

Brand is a means of identification of consumers: brand is the easiest way

of identifying product or services by customers.



A brand can convey the consumers through six levels as shown below:

Attributes: A brand first brings to mind certain attributes for a particular product.

Benefits: Consumers are buying benefits of the product with brand.

Values: The brand tells about values which says same thing about the product

values.

Culture: The brand represents a different culture.

NEW HORIZON COLLEGE

Brand Conveying the Consumer

Attributes

Benefits

Values

Culture

Personality

User

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Personality: A brand project a personality which can be person, animal or

object.

User: The brand suggests its own target audience to use the product.

Types of Brand

Brand Awareness of a Product

Awareness of a brand, when its presence is registered in the mind of consumers.

The levels of awareness can range from mere recognition to recall to top of mind

to dominant. The company is spending money to keep brand in consumer’s

memory.

An organization can put its customer awareness, identify and develop it further to

build strong brand. It is enhanced by creating a brand loyalty and establishing

brand identity of a product.

Brand awareness is asset which brand managers create and enhance to build

brand equity. It is related to the nature and features of product. It leads to brand

strength which is constituted by measuring the variable like leadership, stability,

Market, geographic, trend, support and protection etc…

Creating brand awareness with the use of advertising, promotion, and event

management etc… a different brand has different kind of awareness which

retains recognition.

Brand awareness satisfies a need of the consumer. A consumer as aims,

ambitions, motivation drives and desire. Consumer feels more powerful when he

uses the brand. Satisfactions or preference for a brand shows how loyal the

consumer is likely to be brand.

NEW HORIZON COLLEGE

Brand

Manufacturer brand

National Brand

PrivateBrand

Single Brand

Multiple Brands

Family Brand

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Now a day’s consumers are experience with brand awareness for different

product, where the consumers expectations levels are increased towards brand,

product etc…

INTRODUCTION TO BRAND AWARENESS

With the opening of the market or the post liberalization period has resulted in

many companies entering the markets with offerings of their goods and services.

In the earlier stages of economic revolution consumer had to accept what the

manufacturer has produced. But today’s consumers are much more educated,

demanding, expect lot more to suit their ever changing life styles. There by their

quality expectations have been elevated from time to time in order to rebuild it-

self around its customer.

The manufacturer should be able to satisfy, with the type of product and services

to match the ever-changing customer requirements.

In developing a marketing strategy for products, the sellers have to confront the

branding decision. Brand is a major issue in product. Customers have strong

preference for particular versions and brands of basic goods and services. The

manufacturers eventually learn that market power lies with the brand name

companies. Consumers buying decisions are influenced by the brand.

In the competitive world, the “Brand” plays an important role and a brand is very

prominent asset owned by an organization. Brand is endowed with awareness,

perceived quality, associations and brand loyalty. Brand is presented as creative

idea. A brand is a promise of the seller to deliver a specific set of benefits or

attributes or services to the buyers. Brand represents a level of quality.

Brand Equity

Brands vary in the amount of power and value they have in the market

place. Some brands are largely unknown to most buyers. Other brands have a

high degree of consumer brand awareness. Still others enjoy brands preference

buyers select them over the other. Finally, some brands command a high degree



of brand of brand loyalty. A powerful brand has high brand equity. Brand have

high brand equity to the extent that they have higher brand loyalty, names

awareness perceived quality, strong, brand association and other assets such a

patents trademarks, and channel relationships. A brand with strong brand equity

is valuable asset. In fact, it can even be brought or sold for a price.

Measuring the actual equity of a brand name is difficult. Because it is so

hard measure companies usually of a brand name is difficult. Because it is so

hard measure companies usually do no list brand equity on their balance sheets.

Still, they pay handsomely for it. For e.g. Nestle paid $4.5 billions to buy Row

tree, five times its book value. According to one estimate, the brand Equity of

Coca-Cola, are $36 billions, Marlboro $33 billions, and Kodak $10 billions?

The world’s top brand includes such super powers as Coca-Cola, Disney,

Kodak, Sony; Mercedes Benz high brand equity provided a company with many

competitive advantages. Because a powerful brand enjoys a high level of

consumer brand awareness and loyalty, the company will incur lower marketing

costs relative to revenues. Because consumer expect stores to carry he brand,

the company has more leverage bargaining in beginning with resellers and

become he brand name carries high creditability, the company can more easily

launch brand extensions. Above all, a powerful brand offers the company some

defense against price competition.

Marketers need to manage their brands carefully in order to preserve

brand equity and usefulness, and positive brand associations over time. This

requires continuous R & D investment, skillful advertising and excellent trade and

consumer service.

Some analyses see brand as the major enduring assets of a company.

Outlasting specific products and facilities. Yet behind every powerful brand

stands set of loyal customer therefore, the basic assets underlying brand equity



is customer equity. This suggests the marketing strategy should focus on

extending loyal customer lifetime ale, with brand management serving as a major

marketing tool.

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.

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.

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

Four-stroke technology on catalytic converter fitted in their existing two-stroke

motorcycle. As per the government regulation, Euro-ll norms have to be

implemented by every two-wheeler manufactures from March 31, 2000. And

whichever company is able to get through the chaos will exchange winner.

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

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.

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.



CHAPTER – 2

RESEARCH DESIGN

“BRAND AWARENESS TOWARDS ROYAL ENFIELD IN

BANAGALORE CITY’’

a) Statement of problem:

The research problem selected for the analysis is entitled “Brand

Awareness for ROYAL ENFIELD in Bangalore city” this topic is selected

because ROYAL ENFIELD is one of the largest selling two wheelers in India and

to know the strength and weakness of this two wheelers. The study has been

conducted.

b) 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 and awareness of this vehicle

4. Finding the position of the vehicle among the competitors



5. Finding the perception of consumers about the vehicle.

c) Objective of the study:

1. To determine the awareness level of the consumer about different brands of

two wheelers. (Includes both user and non-users)

2. To determine the consumer perception regarding different attributes of two

wheelers.

3. To study consumer perception regarding ROYAL ENFIELD in particular and

to know the most satisfactory attributes of ROYAL ENFIELD (includes both

user and non-users)

4. To know the reasons and intentions behind purchasing or not purchasing

ROYAL ENFIELD (includes both users and non-users)

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

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

Data collection tool is to collect the primary data, the, data collected

specifically for the study is not published anywhere is collected through

Questionnaire and direct interview. It is used to collect data about the general

perception of two wheelers, user perception of royal enfield and its other

competitors.

Secondary data was collected from various sources like reference books on

marketing, consumer behavior, business and automobiles magazines and

Internet.

Data for project work was collected from primary and secondary source data.

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.

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.

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

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

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

The Essco Chapter:



In 1990, Royal Enfield entered into a strategic alliance with the Essco group,

and later in 1994. The Eicher Group, is one of Indians automotive group with

diversified inter of Tractors, Commercial Vehicles, Automotive Gears, Exports,

Garments, Management Consultant.

Since then, the company has made considerable investments in modernizing

its manufacturing systems and in 1996, when the Government decided to impose

stringent norms for emission first motorcycle to comply. Royal Enfield is amongst

the first few Indian WVTA (Whole vehicle type Approval) for meeting the

European community norms.

Royal Enfield – revving up:

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

management professional committed workforce, the Company has a unique and

open culture, making Royal Enfield a company. To its customers in India and

elsewhere in the world. Royal Enfield means more than is a sense of belonging

to an exclusive community with unfading passion, emotion and interest set to

augment its leadership position, be it in the power and leisure bike segment in

India. Segment elsewhere in the world, by introducing distinctively styled and

higher-powered motor existing communities around its products, expanding its

network, and delivering unique motors.

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

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.

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

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

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

comfort and ruggedness to deliver a unique motorcycling experience. The

beginning Royal Enfield India was set up in 1995 when it started receiving 350cc

bikes in kits from the UK and assembling them in Chennai, India. But, eventually

the entire bike was manufactured in India and a couple of years later the



Company started manufacturing the 500cc Bullet. By its sheer power, unmatched

stability, superior riding comfort and rugged good looks, the Bullet dominated and

continues to dominate the Indian roads. It is the dream choice of every

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

The Eicher Chapter In 1990, Royal Enfield entered into a strategic alliance with

the Eicher and later merged with Eicher Group in 1994. The Enfield Group is one

of India’s leading automotive groups with diversified interests in the manufacture

of Tractors, Commercial Vehicles, Automotive Gears, Exports, Garments,

Management Consultancy and Motorcycles. Since then, the company has made

considerable investments in modernizing its manufacturing technology and

systems in 1996.

When the Government decided to impose stringent norms for emission Royal

Enfield was the first motorcycle manufacturer to comply. 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

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.

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

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

the Company’s stringent quality standards.

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

managing support while maintaining, practices like Direct-On-Line and vendor

Self-Certification.”



Marketing Network:

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

thought process has driven Royal Enfield to set up has a wide network of 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 crore Essco Group, has achieved

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

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

crore in the previous year.

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

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

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

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

the previous year.

After providing for depreciation of Rs. 23.6 crore (Rs. 21.2 crore in the

previous year) and Rs. 24.9 crore of interest (Rs. 23.9 crore in the previous

year), the results show a whopping 82 percent reduction in the loss (before

amortization of VRS costs) to 7.7 crore from Rs. 42.5 crore in the previous year –

a swing of Rs. 34.8 crore. A charge of Rs. 9.5 crore has been made towards



expenditure on voluntary retirement scheme (Rs. 9.0 crore in the previous year).

Further differed tax credit of Rs. 6.2 crore for the year has been recognized in the

Profit and Loss account for the year. As a result, the net loss (after tax) for the

year is Rs. 11.0 Crore as compared to Rs. 51.5 crore in the previous year.

In accordance with the mandatory Accounting Standard on deferred taxation,

issued by the Institute of Chartered Accountants of India, the Company has

made provision for deferred tax liabilities.

The cumulative deferred tax liability as at 31.03.2001 of Rs. 23.8 crore has

been provided by charging the same to the surplus in profit and Loss account as

on 1.4.2001.

Speaking on the performance of Essco Limited, S. S. Sandilya, Chairman

and CEO, Essco Group, said “Over the last one year, our strategy has been

twofold: top line growth through introduction of new products in high growth

segments, enhancement of our distribution network, and aggressive marketing :

and focus on cost reduction covering manpower, materials, overheads and

working capital costs. This strategy has helped us achieve growth of over 10% in

sales income and in enhancing the operating margin as percentage to net sales

from 1% to 7%.

Royal Enfield has also made significant gains in turning around its

performance, by selling 24384 motorcycles as against 21874 in the previous

year, thus recording a volume growth of 12%. In value terms, the turnover

amounted to Rs. 144 crore representing a growth of 16% over the previous year

and reflecting higher per unit realization.

Bullet “Electra” has been well accepted in the market and currently accounts

for 60% of our motorcycles sales. Bullet’s realization per bike has increased



significantly on account of aggressive pricing, reduction in material costs, and

lower levels of discounts. Bullets have also substantially improved the reach and

effectiveness of the distribution system. New initiatives like restructuring the

marketing set up and opening up of company owned and managed showrooms

were taken up with a view to getting closer to the customer.

The exports grew by 45% in the year to 1616 motorcycles from 1127 in the

previous year. Royal Enfield today exports motorcycles to over 30 countries

including USA, UK, Germany and Japan.

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



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

ORGANIZATIONAL CHART



ROYAL ENFIELD BIKES & SPECIFICATIONS:



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



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



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



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



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



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




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



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.



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

NEW HORIZON COLLEGE

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

45


GRAPH – 2

CLASSIFICATION OF RESPONDENTS ON THE BASIS GENDER

Conclusion:

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.



GRAPH 3

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION

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

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.

NEW HORIZON COLLEGE

Income No. Of respondents

Percentage

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

Total 50 100%

49


GRAPH 4

CLASSIFICATION OF RESPONDENTSON THE BASIS OF INCOME

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

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

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

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



Contd….

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

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

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.

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

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.



Aesthetics

Conclusion:

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



Road grip

Conclusion:

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



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.

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.

Maintenance

Conclusion:



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

Reasonable price and resale value



Conclusion:

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

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.

GRAPH 8

SHOWING WHETHER RESPONDENTS HAVE ANY FUTUREPLANS OF PURCHASING TWO WHEELERS.



Conclusion:

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.

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



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

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



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



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



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



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



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



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.



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.



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.



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.



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.



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.



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.

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

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%Very confident 11 22%Energetic and powerfull 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 powerfull , 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

Conclusion:

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



CHAPTER – V

Summary of Findings

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. Maintainance, 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.

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

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.

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.




Documents

Royal Enfield Final - Copy