royal enfield project report
TRANSCRIPT
PROJECT REPORT
ON
“A STUDY ON CUSTOMER SATISFACTION TOWARDS
ROYAL ENFIELD BIKES, BANGALORE”
SUBMITTED IN PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS MANAGEMENT DEGREE COURSE OF BANGALORE
UNIVERSITY
2010-2011
BY
VENU.S
Reg No.08YAC08170
UNDER GUIDENCE OF
MS. RAJANI KORAH
GAIN MORE KNOWLEDGEREACH GREATER HEIGHTS
PRESIDENCY COLLEGE, KEMPAPURA, HEBBAL,
BANGALORE-560024
DECLARATI0N
I hereby declare that this titled as “A STUDY ON
CUSTOMER SATISFACTION TOWARDS ROYAL ENFIELD
BIKES, BANGALORE” is my original work under the guidance of
Ms.Rajani Korah, towards the partial fulfilment of the requirements for BBM
course of Bangalore University. This has not been submitted earlier for award of
any other degree by Bangalore University or any other University.
DATE: NAME: VENU.S
PLACE: BANGALORE REG NO: 08YAC08170
ACKNOWLEDGEMENT
It gives me tremendous pleasure in bringing out this project entitled “A STUDY
ON CUSTOMER SATISFACTION TOWARDS ROYAL ENFIELD BIKES,
BANGALORE” taken up during my final year BBM degree course.
I am thankful to Mr. MUDDU VINAY Principal and Mr. PRADEEP SHINDE
Head of Dept of Presidency College for granting me permission for this work
and the help extended to me during the course of this project.
I express my deep gratitude and indebtedness towards my guide Ms. Rajani
Korah for her valuable guidance and assistance through stimulating discussion
during the course of this project work.
I am deeply indebted to Mr. Deepak Rajkumar, SALES MANAGER, Royal
Enfield, A Unit of Eicher Motors Ltd. for giving me the opportunity to
undertake this project work in their esteemed company. Their valuable guidance
has been at most useful.
Last but not the least I would like to thank my parents, friends and all other
respondents for co-operating with me in this work during my study and making
this a successful one.
NAME: VENU.SREG NO: 08YAC08170
SL. NO. CONTENTS PAGE NO
1. CHAPTER 1- INTRODUCTIONThis chapter contains introduction to Marketing, Meaning, Definition, Importance and other relevant aspects of Customer Satisfaction, the theoretical background to Automobile Industry till date and Indian two wheeler markets.
1-40
2. CHAPTER 2- RESEARCH DESIGN Statement of problem Objectives of study Scope of study Operational Definitions Research Methodology Tools of Data collection Sample Design Plan of Analysis Limitations of the study Overview of Chapter scheme
41-51
3. CHAPTER 3- COMPANY PROFILEThis chapter contains the historical background of the company, company vision, objectives, and SWOT analysis.
52-77
4. CHAPTER 4- DATA ANALYSIS AND INTERPRETATIONAnalysis and interpretation from the data collected through questionnaires, Tables and graphs representing it.
75-114
5. CHAPTER 5- SUMMARY OF FINDINGS AND CONCLUSIONSThis chapter contains the findings drawn from the study.
115-120
6. CHAPTER 6- SUGGESTIONSThis chapter consists few suggestions to the company
121-123
7. ANNEXURESThis chapter contains Questionnaire.
8. BIBLIOGRAPHY Name of the books, author, magazines and websites.
INDEX OF THE TABLES
TABLE NO
TABLE NAMES PAGE NO
1. Table showing the profile of the respondents based on age
75
2. Table showing the profile of the respondents based on gender
77
3. Table showing the occupation of respondents 79
4. Table showing the annual income group of respondents
81
5. Table showing the model of the Royal Enfield therespondents presently own
83
6. Table showing the purchasing way of the customers 85
7. Table showing the no of respondents considering other motorcycle while purchasing Royal Enfield bike
87
8. Table showing the source of awareness for customers while buying their Royal Enfield bike
89
9. Table showing the mileage of Royal Enfield after purchase of bike
91
10. Table showing the breakdown of bikes since purchase of vehicle
93
11. Table showing the place of purchase of Royal Enfield bikes and their satisfaction response towards it
95
12. Table showing the availability of spare parts in the market
97
13 Table showing the major problems after purchasing Royal Enfield bike
99
14. Table showing the rating by the respondents for their satisfaction level with respect to power and pick up
101
15. Table showing the rating by the respondents for their satisfaction level with respect to comfort and safety
103
16 Table showing the rating by the respondents for their satisfaction level with respect to after sales service
105
17. Table showing the respondents opinion of the major barrier for not purchasing Royal Enfield bikes by non-bullet riders
107
18. Table showing the place of service of respondents bike
109
19. Table showing the respondents opinion and level of satisfaction about the company taking action towards complaints lodged by the customers
111
20. Table showing the respondents opinion about participating in the rider mania organized by the Royal Enfield club
113
INDEX OF THE GRAPHS
GRAPH NO
GRAPH NAMES PAGE NO
1. Graph showing the profile of the respondents based on age
76
2. Graph showing the profile of the respondents based on gender
78
3. Graph showing the occupation of respondents 80
4. Graph showing the annual income group of respondents
82
5. Graph showing the model of the Royal Enfield the respondents presently own
84
6. Graph showing the purchasing way of the customers 86
7. Graph showing the no of respondents considering other motorcycle while purchasing Royal Enfield bike
88
8. Graph showing the source of awareness for customers while buying their Royal Enfield bike
90
9. Graph showing the mileage of Royal Enfield after purchase of bike
92
10. Graph showing the breakdown of bikes since purchase of vehicle
94
11. Graph showing the place of purchase of Royal Enfield bikes and their satisfaction response towards
96
it
12. Graph showing the availability of spare parts in the market
98
13 Graph showing the major problems after purchasing Royal Enfield bike
100
14. Graph showing the rating by the respondents for their satisfaction level with respect to power and pick up
102
15. Graph showing the rating by the respondents for their satisfaction level with respect to comfort and safety
104
16 Graph showing the rating by the respondents for their satisfaction level with respect to after sales service
106
17. Graph showing the respondents opinion of the major barrier for not purchasing Royal Enfield bikes by non-bullet riders
108
18. Graph showing the place of service of respondents bike
110
19. Graph showing the respondents opinion and level of satisfaction about the company taking action towards complaints lodged by the customers
112
20. Graph showing the respondents opinion about participating in the rider mania organized by the Royal Enfield club
114
CHAPTER 1
INTRODUCTION
INTRODUCTION TO MARKETING
Marketing is the process of performing market research, selling products and/or
services to customers and promoting them via advertising to further enhance
sales. It generates the strategy that underlies sales techniques, business
communication, and business developments. It is an integrated process through
which companies build strong customer relationships and create value for their
customers and for themselves.
Marketing is used to identify the customer, to satisfy the customer, and to keep
the customer. With the customer as the focus of its activities, it can be concluded
that marketing management is one of the major components of business
management. Marketing evolved to meet the stasis in developing new markets
caused by mature markets and overcapacities in the last 2-3 centuries. The
adoption of marketing strategies requires businesses to shift their focus from
production to the perceived needs and wants of their customers as the means of
staying profitable.
The term marketing concept holds that achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired
satisfactions. It proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy
these more effectively than competitors.
An orientation, in the marketing context, related to a perception or attitude a
firm holds towards its product or service, essentially concerning consumers and
end-users. Throughout history, marketing has changed considerably in time with
consumer tastes.
Contemporary approaches
Recent approaches in marketing include relationship marketing with focus on
the customer, business marketing or industrial marketing with focus on an
organization or institution and social marketing with focus on benefits to
society. New forms of marketing also use the internet and are therefore called
internet marketing or more generally e-marketing, online marketing, search
engine marketing, desktop advertising or affiliate marketing. It attempts to
perfect the segmentation strategy used in traditional marketing.
Customer orientation
A firm in the market economy survives by producing goods that persons are
willing and able to buy. Consequently, ascertaining consumer demand is vital
for a firm's future viability and even existence as a going concern. Many
companies today have a customer focus (or market orientation). This implies
that the company focuses its activities and products on consumer demands.
Generally, there are three ways of doing this: the customer-driven approach, the
market change identification approach and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of consumer
research. Every aspect of a market offering, including the nature of the product
itself, is driven by the needs of potential consumers. The starting point is always
the consumer. The rationale for this approach is that there is no reason to spend
R&D funds developing products that people will not buy. History attests to
many products that were commercial failures in spite of being technological
breakthroughs.
A formal approach to this customer-focused marketing is known as SIVA
(Solution, Information, Value and Access). This system is basically the four Ps
renamed and reworded to provide a customer focus. The SIVA Model provides
a demand/customer-centric alternative to the well-known 4Ps supply side model
(product, price, placement, promotion) of marketing management.
Product → Solution
Price → Value
Place → Access
Promotion → Information
If any of the 4Ps were problematic or were not in the marketing factor of the
business, the business could be in trouble and so other companies may appear in
the surroundings of the company, so the consumer demand on its products will
decrease.
Organizational orientation
In this sense, a firm's marketing department is often seen as of prime importance
within the functional level of an organization. Information from an
organization's marketing department would be used to guide the actions of other
departments within the firm. As an example, a marketing department could
ascertain (via marketing research) that consumers desired a new type of product,
or a new usage for an existing product. With this in mind, the marketing
department would inform the R&D department to create a prototype of a
product/service based on consumers' new desires.
The production department would then start to manufacture the product, while
the marketing department would focus on the promotion, distribution, pricing,
etc. of the product. Additionally, a firm's finance department would be
consulted, with respect to securing appropriate funding for the development,
production and promotion of the product. Inter-departmental conflicts may
occur, should a firm adhere to the marketing orientation. Production may
oppose the installation, support and servicing of new capital stock, which may
be needed to manufacture a new product. Finance may oppose the required
capital expenditure, since it could undermine a healthy cash flow for the
organization.
Marketing research
Marketing research involves conducting research to support marketing
activities, and the statistical interpretation of data into information. This
information is then used by managers to plan marketing activities, gauge the
nature of a firm's marketing environment and attain information from suppliers.
Marketing researchers use statistical methods such as quantitative research,
qualitative research, hypothesis tests, Chi-squared tests, linear regression,
correlations, frequency distributions, poison distributions, binomial
distributions, etc. to interpret their findings and convert data into information.
The marketing research process spans a number of stages, including the
definition of a problem, development of a research plan, collection and
interpretation of data and disseminating information formally in the form of a
report. The task of marketing research is to provide management with relevant,
accurate, reliable, valid, and current information. A distinction should be made
between marketing research and market research. Market research pertains to
research in a given market. As an example, a firm may conduct research in a
target market, after selecting a suitable market segment. In contrast, marketing
research relates to all research conducted within marketing. Thus, market
research is a subset of marketing research.
Market segmentation
Market segmentation pertains to the division of a market of consumers into
persons with similar needs and wants. For instance, Kellogg's cereals, Fro sites
are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both
goods denote two products which are marketed to two distinct groups of
persons, both with similar needs, traits, and wants. Market segmentation allows
for a better allocation of a firm's finite resources. A firm only possesses a
certain amount of resources. Accordingly, it must make choices (and incur the
related costs) in servicing specific groups of consumers. In this way, the
diversified tastes of contemporary Western consumers can be served better.
Types of marketing research
Marketing research, as a sub-set aspect of marketing activities, can be divided
into the following parts:
Primary research (also known as field research), which involves the
conduction and compilation of research for a specific purpose.
Secondary research (also referred to as desk research), initially conducted
for one purpose, but often used to support another purpose or end goal.
By these definitions, an example of primary research would be market research
conducted into health foods, which is used solely to ascertain the needs/wants of
the target market for health foods. Secondary research in this case would be
research pertaining to health foods, but used by a firm wishing to develop an
unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to
information. Nevertheless, while secondary research is relatively inexpensive, it
often can become outdated and outmoded, given that it is used for a purpose
other than the one for which it was intended. Primary research can also be
broken down into quantitative research and qualitative research, which, as the
terms suggest, pertain to numerical and non-numerical research methods and
techniques, respectively. The appropriateness of each mode of research depends
on whether data can be quantified (quantitative research), or whether subjective,
non-numeric or abstract concepts are required to be studied (qualitative
research).
There also exist additional modes of marketing research, which are:
Exploratory research, pertaining to research that investigates an
assumption.
Descriptive research, which, as the term suggests, describes "what is".
Predictive research, meaning research conducted to predict a future
occurrence.
Conclusive research, for the purpose of deriving a conclusion via a
research process.
Promotion (marketing)
Promotion is one of the four elements of marketing mix (product, price,
promotion, distribution). It is the communication link between sellers and
buyers for the purpose of influencing, informing, or persuading a potential
buyer's purchasing decision. Fundamentally, however there are three basic
objectives of promotion. These are:
1. To present information to consumers as well as others
2. To increase demand
3. To differentiate a product.
Marketing strategy
The field of marketing strategy encompasses the strategy involved in the
management of a given product. A given firm may hold numerous products in
the marketplace, spanning numerous and sometimes wholly unrelated
industries. Accordingly, a plan is required in order to effectively manage such
products. For example, a start-up car manufacturing firm would face little
success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other
large global car maker. Moreover, a product may be reaching the end of its life-
cycle. Thus, the issue of divest, or a ceasing of production, may be made.
CUSTOMER SATISFACTION
Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of customers, or percentage of
total customers, whose reported experience with a firm, its products, or its
services (ratings) exceeds specified satisfaction goals." It is seen as a key
performance indicator within business and is part of the four of a Balanced
Scorecard. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly
has become a key element of business strategy. Within organizations, customer
satisfaction ratings can have powerful effects. They focus employees on the
importance of fulfilling customers’ expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. These
metrics quantify an important dynamic. When a brand has loyal customers, it
gains positive word-of-mouth marketing, which is both free and highly
effective. In researching satisfaction, firms generally ask customers whether
their product or service has met or exceeded expectations. Thus, expectations
are a key factor behind satisfaction. When customers have high expectations
and the reality falls short, they will be disappointed and will likely rate their
experience as less than satisfying. For this reason, a luxury resort, for example,
might receive a lower satisfaction rating than a budget motel—even though its
facilities and service would be deemed superior in “absolute” terms.
CUSTOMER SATISFACTION IN 7 STEPS
1. Encourage Face-to-Face Dealings
This is the most daunting and downright scary part of interacting with a
customer. If you're not used to this sort of thing it can be a pretty nerve-
wracking experience. Rest assured, though, it does get easier over time. It's
important to meet your customers face to face at least once or even twice during
the course of a project.
2. Respond to Messages Promptly & Keep Your Clients Informed
This goes without saying really. We all know how annoying it is to wait
days for a response to an email or phone call. It might not always be practical to
deal with all customers' queries within the space of a few hours, but at least
email or call them back and let them know you've received their message and
you'll contact them about it as soon as possible. Even if you're not able to solve
a problem right away, let the customer know you're working on it.
3. Be Friendly and Approachable
A fellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be friendly, courteous and to
make your clients feel like you're their friend and you're there to help them out.
There will be times when you want to beat your clients over the head repeatedly
with a blunt object - it happens to all of us. It's vital that you keep a clear head,
respond to your clients' wishes as best you can, and at all times remain polite
and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly
defined customer service policy is going to save you a lot of time and effort in
the long run. If a customer has a problem, what should they do?
If the first option doesn't work then what? Should they contact different people
for billing and technical enquiries? If they're not satisfied with any aspect of
your customer service, who should they tell? There's nothing more annoying for
a client than being passed from person to person, or not knowing who to turn to.
So make sure your customer service policy is present on your site -- and
anywhere else it may be useful.
5. Attention to Detail
Have you ever received a Happy Birthday email or card from a company
you were a client of? Have you ever had a personalized sign-up confirmation
email for a service that you could tell was typed from scratch? These little
niceties can be time consuming and aren't always cost effective, but remember
to do them.
Even if it's as small as sending a Happy Holidays email to all your customers,
it's something. It shows you care; it shows there are real people on the other end
of that screen or telephone; and most importantly, it makes the customer feel
welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them
Out
Sometimes this is easier said than done! However, achieving this supreme
level of understanding with your clients will do wonders for your working
relationship.
7. Honor Your Promises
It's possible this is the most important point in this article. The simple
message: when you promise something, deliver. Clients don't like to be
disappointed. Sometimes, something may not get done, or you might miss a
deadline through no fault of your own. Projects can be late, technology can fail
and sub-contractors don't always deliver on time. In this case a quick apology
and assurance it'll be ready ASAP wouldn't go a miss.
CUSTOMER LOYALTY
Obtaining a thorough understanding of customer loyalty is a prerequisite
for the execution of the research at hand. For that, the development of customer
loyalty research within the framework of relationship marketing will be
presented first, before different customer loyalty concepts will be introduced.
From these concepts, a definition of customer loyalty for use in this study will
be derived, before both consequences and antecedents of customer loyalty will
be portrayed.
Since the beginning of the 1990s, customer loyalty has gained importance
both in relationship marketing research and in business. In business, this can be
attributed to changing market- and competition-environments. Due to a shift
from a sellers’ to a buyers’ market and because of an increasing degree of
globalization, most industries find themselves confronted with new challenges.
In a first phase, firms tried to face these challenges by focusing on their internal
processes and organizational structures, trying to achieve cost reductions by
concentrating on internal improvements. A second phase of external focus
followed, where firms directed attention to their customers, trying to retain
existing ones and to win over new ones (churning). Since “acquiring new
customers is much more expensive than keeping them”. And “loyal customers
are the bedrock of any business”. A loyal customer base represents a barrier to
entry, a basis for a price premium, time to respond to competitor innovations,
and a bulwark against deleterious price competition. Loyalty is critical to brand
volume, is highly correlated to market share, and can be used as the basis of
predicting future market share; consequently, understanding loyalty appears
critical to any meaningful analysis of marketing strategy.
In marketing research, two trends mark the development of customer
loyalty. While individual transactions initially were in the center of marketing
research, the focus shifted towards analyzing relationships states that the
‘traditional’ marketing concept of the marketing mix with its ‘4 Ps’, developed
in the middle of the last century, had been the established approach until the
1990s.
This approach, how-ever, focuses solely on transactions, a deficit tackled by the
relationship marketing approach. At the core of it is the study of relationships
between buyers and sellers of goods or services, in contrast to merely
examining transactions. An often cited and comprehensive definition of
relationship marketing is provided “Relationship marketing refers to all
marketing activities directed toward establishing, developing, and maintaining
successful relational exchanges.” Therefore, the relationship marketing
approach pro-vides a suitable environment in which customer loyalty research
can be nested.
While the development of relationship marketing began in the early
1970s, it was not until the late 1980s that works from the ‘Nordic School of
Services’. Initiated a paradigm shift that geared marketing towards the creation,
conservation, and extension of buyer-seller relationships. Although relationship
marketing today is widely accepted among marketing researchers, its promoters
do not postulate the replacement of the transactional approach, but rather
juxtapose the two approaches. For example, delineates a strategy continuum, in
which different goods require different degrees of transaction- and relationship-
based marketing strategies. As a result of the focus on relationships in
marketing research, customer loyalty gained importance within research.
Before determining which stream the present study can be associated
with, however, it is important to create a clear understanding of different
customer loyalty concepts prevalent in research. This will be accomplished in
the following section.
Customer Loyalty Concepts
Reviewing research, it becomes obvious that the notion of customer
loyalty is blurred. At its core, customer loyalty deals with relationships between
suppliers and their customers and can be distinguished from other loyalty
aspects, such as brand loyalty, which refer to a more abstract attachment, such
as that towards a brand. Within German customer loyalty literature, the notion
of customer loyalty is even more faceted, encompasses both ‘customer loyalty’
and ‘customer retention’ distinguishes an active, supplier-focused component
and a passive, customer focused component of customer loyalty.
In the supplier-focused perspective, customer loyalty is seen as a bundle
of measures that aim at improving relationships with customers. The supplier is
in the center of attention and the customer is only regarded as the factor at
which success of customer loyalty becomes manifest. Here it becomes clear that
this approach contains a conceptual deficit. It is the customer who eventually
decides on whether customer loyalty management is successful or not, because
all activities undertaken by a supplier can only be geared at influencing
customers to be loyal. A customer-focused perspective therefore has to be added
to evaluate the success of customer loyalty management.
Within the customer-focused perspective, customer loyalty is conceptualized
taking into account customers’ complex characteristics. These can either be
approached as customers’ directly observable actions and/or take into account
their attitudes and intentions. Since customers’ actions are directly influenced
by their attitudes and intentions, it is obvious that these have to be scrutinized to
understand and manage loyalty. A third perspective is a synthesis of the former
two approaches. The relationship-focused perspective directly examines the
relationship between suppliers and customers. Accordingly, the objects of study
in this perspective usually are buying behavior in retail contexts and long-term
relationships marked by frequent interaction between suppliers and buyers in
industrial contexts.
Behaviorist customer loyalty concepts
Behaviorist concepts of customer loyalty have been at the core of early
marketing research and focus on customers’ observable behavior, as e.g. in
purchasing behavior. Accordingly, customer loyalty is established, when
customers demonstrate consistency in their choice of supplier or brand. “Hard-
core” loyalty, when one product alternative is exclusively repurchased and of
“reinforcing” loyalty, when customers switch among brands but repeat-purchase
one or more alternatives to a significant extent. Similarly, customer loyalty as
“the proportion of times a purchaser chooses the same product or service in a
specific category compared to the total number of purchases made by the
purchaser in that category“. Pegging customer loyalty to purchasing behavior,
however, is very critical; there can be a multitude of factors affecting
purchasing behavior, such as product availability or special deals, which are not
grasped by looking at purchases alone. A main deficit of the behaviorist
approach thus is that it does not look at the drivers’ behind purchasing behavior.
Another disadvantage of behaviorist customer loyalty concepts is their ex-post
approach. When loyalty is only expressed through purchases, information on
customers’ actual loyalty status in between purchases is not available.
Consequently, decreasing loyalty is only recognized after it manifests itself
through changed purchasing behavior. Only in relationships with frequent
interaction can a supplier integrate further aspects, such as complaints, into
customer loyalty management. The reason, why behaviorist concepts may still
be valuable, is because the measurement of customer loyalty in this approach
does not necessitate involvement by the customer. The assessment of attitudes
and intentions would always imply customers’ cooperation through
participation in surveys. By simply recording purchases, e.g. through delivery
records in the industrial context or customer cards in a consumer context; the
assessment of customer loyalty poses little difficulty. Particularly in areas,
where most purchases can be easily ascribed to individual customers, as is the
case with mail-ordering or book-stores on the internet, the behaviorist approach
is useful for identifying different customer groups and their characteristics.
Such firms, however, can only assess purchases of their own products, while
purchases of competing products go unnoticed. Firms can therefore neither
draw conclusions about relative changes of purchasing behaviors, nor evaluate
their comparative market position.
Neo-behaviorist customer loyalty concepts
These narrow technical definitions do not adequately capture the richness
and depth of the loyalty construct implicit in a relational framework.”
Consequently, neo-behaviorist customer loyalty concepts start at the
shortcomings of the behaviorist approach by examining the causes of loyalty.
As early as 1969, Day concluded that “loyalty should be evaluated with both
attitudinal and behavioral criteria” otherwise accidental repeat-purchases,
merely resulting from situational exigencies, would be regarded as indicators of
loyalty. There is no agreement, however, on the question, whether attitudes are
part of customer loyalty or merely an antecedent of it. Some authors propose
that only positive attitude can lead to ‘true’ customer loyalty. If attitude then is a
necessary prerequisite of customer loyalty, some drivers of loyalty cannot be
explained. Transaction cost theory, for instance, provides the concept of asset
specificity. Relationship-specific investments create economic switching
barriers and therefore increase customer loyalty. However, the mere repeat
purchase of goods or services for reasons of economic constraints would not
qualify as loyalty, as positive attitudes are not involved. In order to avoid the
outlined problem, it is useful to abstain from defining positive attitude to be a
necessary antecedent of loyalty. Instead, researchers usually consider intentions
and observable behavior to be the constituting elements of customer loyalty.
Determinants of Customer Loyalty
In order to be able to gear marketing activities towards the creation of customer
loyalty, its determinants and their precise effects have to be known.
Accordingly, many researchers have investigated this topic. In order to gain an
overview of the determinants identified in these works, they can be structured in
three dimensions:
(1) Company-related determinants refer to the supplier itself or to the goods
or services offered. It is a prerequisite for the existence of customer loyalty
that the offered goods or services create utility for the customer and that they
are available. In this respect, an assessment is usually performed by
examining quality. In order to evaluate the price-performance ratio, customers
will pay attention to prices. Customer loyalty will also be influenced by the
reputation a company has and ultimately by customer loyalty programs offered.
(2) Relationship-related determinants play a significant role in long-term
relationships. Factors regarding the interaction between supplier and
customer, such as relationship quality, previous experiences, and trust are
important. Commitment, which provides evidence of emotional closeness
and moral or normative feelings of obligation, takes a central role in
relationships. Specificity and dependence can lead to economic, psychological
and social switching barriers.
(3) Customer-related determinants are mainly influenced by customers’
characteristics. In this respect, affect and involvement, and consequently
also the importance of the good or service to the customer, are important.
Addition to the above delineated areas, the effects of the market environment
and competition are researched, as is the link between satisfaction and loyalty,
which plays an important role in the research of customer loyalty and is
often placed in one of the three dimensions. However, as most other
determinants influence satisfaction, it cannot be clearly separated and
should therefore be listed as a distinct category.
OBJECTIVES OF CUSTOMER SATISFACTION PROGRAMME
Our Programs are research based, built on the three corner stone’s of customer
satisfaction: product quality, process and procedural quality, and relationship
quality. Our typical program assesses specific issues under each component, for
example:
Product Quality
• meets or exceeds expectations
• state-of-the-art technology
• validated, tested, & simulated to client specifications
• competitive pricing
• enhance customer value
Procedural Quality
• ease of ordering
• accurate fulfillment
• inventory meets needs
• on time delivery
• environmentally friendly packing
• packaged to prevent damage in shipment
• ease of tracking
• appropriate adjustment/return policy
• order-through-delivery process bests competition
Relationship Quality
• product knowledgeable contacts
• knowledgeable about client needs
• communicates at client knowledge level
• one-stop problem resolution
• problems solved at the root cause
• legendary customer service benchmarks competition
The tailored Programs provide direct, statistically valid, comparison data of you
to your competition on the following actionable areas:
• Responsiveness
• Competitiveness
• Innovativeness
• Quality
• Customer Service
• Long Term Partnering
It accurately quantifies your competitive strengths and weaknesses from your
customers' perspective. Using the data, it will help you focus strategic efforts to
retain and increase market share. The programs also provide direct measure of
the effectiveness of initiatives your organization has implemented during prior
year (after first year's participation). That is, you will have quantifiable internal
benchmarks (in addition to the external competitive benchmarks) on the repeat
annual surveys to judge progress based on actions you have taken during the
previous 12 months.
TABLE SHOWING KEY FACTORS FOR CUSTOMER SATISFACTION
COMPANY FUNCTION QUALITY FACTORS
Sales
Product
Knowledge
Marketing
Brochure detail
Mailing frequently
Distribution
Order Delivery time
Order Completeness
After Sales
Problem Response Time
Time to Resolve
Accounts
Accuracy
Problem Response
Courtesy
CUSTOMER CARE AND SALES PROCESSES
Service organizations are particularly dependent on levels of customer care, as
the ‘people’ element in the marketing mix reflects. Customer care can play an
equally important role, however, in manufacturing, production and other
organizations providing goods and services. For customer care programs to be
successful they need to span the entire organization. Popular guarantees 100%
customer satisfaction and has, over the years, developed a more conscientious
approach to individual customers. There is Customer care training provided.
Though this may initially be a very lengthy process as the ball starts rolling
through all sectors of the organization and costs will grow too, as further
investment is required to update and maintain the initiative in the future. To
provide an effective customer care services, every employee is highly
motivated. There are frequent internal newsletters circulated which strengthens
the bond throughout the organization. Frequent performance appraisal
throughout the organization is conducted to evaluate the employees and provide
career developmental opportunities to potential employees. The customer care
program at Popular mainly have six main stages, as follows:
1. Objectives setting: For every month, target sales will be fixed by the Sales
Manager at the showroom.
2. Current situation analysis: Present industrial trend is observed closely
and various promotional offers are introduced to boost sales if there is a
chance for a slump in sales. Also, a customer service audit is conducted
both internally and externally. Monthly sales targets fixed by the Sales
Manager.
3. Strategy development: Develop a strategy for raising levels of both
customer service and sales from the current to the desired standard based
upon any change in trends and the economic conditions prevailing. Each
region is divided into 4 zones. Each zonal level will be under the charge of
a supervisor under whom there are four sales executives. It is the duty of
these sales executives to generate on field enquiries and to follow up the
customers based on the appointment fixed.
4. Functional planning: Define training needs and other requirements such
problem-solving sessions or teambuilding exercise to execute the strategy.
Daily, a meeting of all the staffs at their respective branch is convened.
Here they discuss their daily programs and targets to meet plus they also
discuss about their previous day’s work among the team. They consider the
response of all the individual customers met.
5. Implementation: Implement training and other initiatives through
workshops, seminars. The prospective customers are segregated and the
issues raised by certain customers will also be addressed. Some customers
may not be satisfied with the present offers and price. In such cases efforts
will be put up to make maximum adjustments and convert it to sales.
6. Monitoring: Results are tested through customer and employee surveys
and evaluation of the training methods is also conducted. The program is
improved and updated on a continuous basis.
HANDLING CUSTOMER COMPLAINTS
A complaint is any measure of dissatisfaction with your product or
service, even if it’s unfair, untrue, or painful to hear! Complaints may be about:
• Service Content, Delivery or Quality • Response Time
• Documentation • Personnel
• Billing • Communication
• Follow Up • Requests
This is a customer complaint resolution process that anyone can implement:
Focus on the Customer
If you can’t immediately solve the problem, respond to the customer and
identify an “owner” who will be responsible for final resolution. Complete the
communications loop with customer. If you’ve referred the complaint to others,
make sure there’s closure. If you’ve left the customer hanging without a
response, you’ve become part of the problem.
Focus on the Complaint
Collect all complaints from all external customers and categorize them in a way
that allows you to analyze data to see trends, patterns, concentrations,
tendencies, etc.
Focus on Process Improvement
Use the database of complaints to define processes that are important from the
customer’s perspective and to improve the most critical ones. Based on analysis
of the database, make appropriate investments to prevent issues that result in
customer complaints. If you can think of complaints as useful data for making
process improvements in your organization, you will go a long way towards
making changes that will differentiate you and make your work life easier, more
fun, and more responsive to customer needs.
SIX STEPS TO DEALING WITH DIS-SATISFIED CUSTOMERS
1. Listen carefully to what the customer has to say, and let them finish-
Don't get defensive. The customer is not attacking you personally; he or she has
a problem and is upset. Repeat back what you are hearing to show that you have
listened.
2. Ask questions in a caring and concerned manner-The more information
you can get from the customer, the better you will understand his or her
perspective. I’ve learned it’s easier to ask questions than to jump to conclusions.
3. Put yourself in their shoes-As a business owner, your goal is to solve the
problem, not argue. The customer needs to feel like you’re on his or her side
and that you empathize with the situation.
4. Apologize without blaming-When a customer senses that you are sincerely
sorry, it usually diffuses the situation. Don't blame another person or
department. Just say, "I'm sorry about that.”
5. Ask the customer, "What would be an acceptable solution to you?"-
Whether or not the customer knows what a good solution would be, I’ve found
it’s best to propose one or more solutions to alleviate his or her pain. Become a
partner with the customer in solving the problem.
6. Solve the problem, or find someone who can solve it— quickly!-Research
indicates that customers prefer the person they are speaking with to instantly
solve their problem. When complaints are moved up the chain of command,
they become more expensive to handle and only add to the customer's
frustration.
INDUSTRY PROFILE
AUTOMOBILE INDUSTRY TILL DATE
The automobile industry is one of the biggest industries in the world. Being a
major revenue and job generating sector it drives the economies of some of the
superpowers of the world. In India the automobile industry has grown by leaps
and bounds since the advent of the liberalization era the automobile industry
and especially the two wheeler segment has grown by leaps and bounds.
The liberalization has done away with primitive and prohibitive practices of
licensing and restricted foreign investment have been done away with. The
result of which was the entry of foreign players into the Indian market. The two
wheeler segment was largely dominated by Automobile Products of India (API)
and Enfield in the 50s. Later on towards the end of the 50s Bajaj Autos began
importing Vespa scooters from Italian company Piaggio. In the following
decades the automobile industry in India was mainly dominated by scooters
with API and later Bajaj dominating the market. There were very few products
and choices available as far as motorcycle is concerned and Enfield bullet and
Rajdoot dominated the market. The 80s saw the entry of Japanese companies in
the Indian market with the opening up of the market to foreign companies. Hero
Honda and TVS Suzuki are companies formed in this era of market reform. The
market was still predominantly scooter dominated and Bajaj and LML were the
leading brands producing the products at that time.
The Japanese companies not only collaborated with Indian companies to
produce the already existing products but also brought in new technology as a
result of which the ever conquering 100cc bikes which were extremely fuel
efficient with 4 stroke engines were launched in India. These proved to be
highly successful as they provided a cheap and affordable means of personal
transport to all those who could not buy a car. The flourishing middle class took
a great liking for these bikes and the bike sales in India began to grow
exponentially year on year leading to Hero Honda becoming the leader in the
two wheeler industry in India and the largest producer of two wheelers in the
world. The post 90s era was the era of liberalization and weakening of
restrictive measures. The government went on an overdrive to support the
industry and all FDI regulations and licensing was abolished. 100% FDI was
allowed in the automobile industry and the excise duty was also considerably
reduced to its current level of 12% on two wheelers. All these factors combined
with the rising fuel prices, the increasing dispensable incomes of households,
easy access to finance, etc. have led to two wheeler industry becoming the
backbone of the automobile industry in India. The two wheeler industry in India
forms a major chunk of the automobiles produced in India. According to
Society of Indian Automobile Manufacturers statistics for the year 2009 – 2010,
two – wheelers comprise 76.49% of market share among the vehicles produced
in India. The production share of two wheelers is quite similar to the market
share. The two wheeler industry comprises around 74% of the total automobiles
produced in India. The SIAM data for the year 2009-10 states that 8,418,626
two wheelers were produced during the year against a total of
11,175,479vehicles produced during the year.
India emerged as Asia's fourth largest exporter of automobiles, behind Japan,
South Korea and Thailand. India’s automobile sector consists of the passenger
cars and utility vehicles, commercial vehicle, two wheelers and tractors
segment. The total market size of the auto sector in India is approximately Rs
540 billion and has been growing at around 8 percent per annum for the last few
years. Since the last four to five years, the two wheelers segment has driven the
overall volume growth on account of the spurt in the sales of motorcycles.
However, lately the passenger cars and commercial vehicles segment has also
seen a good growth due to high discounts, lower financing rates and a pickup in
industrial activity respectively. Major automobile manufacturers in India
include Maruti Udyog Ltd., General Motors India, Ford India Ltd., Eicher
Motors, Bajaj Auto, Daewoo Motors India, Hero Honda Motors, Hindustan
Motors, Hyundai Motor India Ltd., Royal Enfield Motors, TVS Motors and
Swaraj Mazda Ltd.
With the economy growing at 9% per annum and increasing purchasing power
there has been a continuous increase in demand for automobiles. This, along
with being the second largest populated country, makes the automobile industry
in India a very promising one.
I NDIAN TWO WHEELER MARKET
Ever since the old Lambretta scooter was replaced with the flurry of vibrant two
wheeler models, Indian two wheeler industry has seen a phenomenal change in
the way they perceive the Indian market. Two wheeler manufacturers are now
competing in an ever growing consumer market by bringing out new products
and features. The country has now grown into the second largest producer of
two wheelers in the world. Currently there are around 10 two-wheeler
manufacturers in the country, and they are Bajaj, Hero, Hero Honda, Honda,
Mahindra/Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. There have been
various reasons behind this growth. Because of poor public transport system,
the citizens found convenience in two wheelers. Added to this is the fact that the
average Indian still does not have the purchasing capacity for a more expensive,
four wheeler. The story of Mr. Ratan Tata inspired by a family of four
members travelling in Indian roads, not concerned about safety and the
evolution of the idea of TATA Nano has been quite famous globally. The Indian
two wheeler industries can be divided into motorcycles, scooters and mopeds.
The consumer has changed his preference from mopeds to scooters and then to
motorcycles. The trends seen in the past few years include females increasingly
using two-wheelers for their personal commutation and various two wheeler
manufacturers designing vehicles specially to cater to needs of this segment.
One of the earliest revolutions in this industry was Kinetic’s introduction of the
concept of electronic/self-start and automatic gears which made two wheelers
comfortable and useable by women, when compared to old Bajaj Chetak
advertisements which showed middle aged females riding a Bajaj Chetak
scooter.
A recent trend in the industry has been electric vehicles, which mostly leverage
on their eco-friendliness and low operating costs, but is still not accepted well
due to the lack of reputation of the manufacturers and lack of trust on
technology, which is still being perceived in the nascent stages, especially
battery and inverters which prove to be very expensive components. TVS
recently leveraged this opportunity by launching a hybrid model of their non
geared scooter – TVS Scooty. The end of the last decade saw Bajaj taking a
radical decision to do away with the Scooter range and completely concentrate
on motorcycles, especially stating change in customer’s preference as the main
reason. The customers are left without a choice in most cases than to migrate
from the traditional scooters of the Indian family to the all youthful bikes.
TOP EXPORT DESTINATIONS
The Indian Automobile industry has attained new heights in the last
ten years. It has seen the vehicle production growing rapidly and industry has
been making significant contribution to the employment, directly and indirectly,
and also to kitty of indirect taxes. Today, all major OEMs are in India and many
of them have made India a hub for their small cars and exports.
In December 2006, Government had formulated a ten-year
Automotive Mission Plan with an aim to achieve domestic vehicle market of
$82-119bn by 2016 and $12bn export of vehicles. It also aimed at making India
7th largest vehicle producing country in the world by 2016. And, we have
already achieved this milestone in 2010, which is good six years ahead of the
target.
In this category, SAARC countries have been one of the key destinations
for Indian exports with three of the SAARC countries, Sri Lanka,
Bangladesh and Nepal featuring in the top 6 export destinations for Indian
two wheelers segment. However, exports to Sri Lanka, which used to be
the largest importer of two wheelers from India in 2006-07, have fallen by
almost 20% since 2006-07 to reach a level of $ 63mn of exports in 2009-
10.
The top most destinations for exports in this segment is Nigeria which
imported two wheelers worth $ 103mn in the year 2009-10 up from $ 85mn
in 2008-09, a growth of 21% approximate. In fact, Nigeria has emerged as
one of the fastest growing destination for Indian two wheeler exports over
past 4 years. India exported two wheelers worth merely $ 6mn in Nigeria in
2006-07 which has grown by 15 times to reach an export level of $ 103mn
in 2009-10. Amongst the top 5 export destinations in this segment,
Colombia experienced the highest increase in growth of imports from India
in 2009-10. Exports of two wheelers to Colombia increased by 45% in
2009-10 over 2008-09.
FUTURE PROJECTIONS
The Indian automobile industry is expected to grow to US$ 40bn by 2015
from the current level of US$ 10bn in 2009. By the year 2016 the industry
is expected to contribute 10% of the nation’s GDP. The industry
manufacturers over 11mn vehicles a year employing more than three
million people.
The greatest challenge and competition would be from the Chinese
automobile industry. It has been able to give stiff competition to India in
terms of productivity, cost of manufacturing and technology. Again the
present trend of excess manufacturing capability, reduced margins put
additional pressure on the industry.
On the positive side, India’s strength in software sector, combined with
skilled labor and low cost of manufacturing should place it in a favorable
position globally.
Two wheeler industry gains more profit Considering the scenario of traffic
and roads in India, and the rate at which infrastructure is growing in
comparison with the market, any fool will prefer to travel in a two wheeler
(for regular use, not for picnic or time pass or once in a while trips). For the
simple reason that, with a two wheeler, sneaking anywhere is far easier
than a four wheeler. And definitely faster too. And then comes the bigger
problem of parking. Two wheelers can be parked anywhere on the road,
but that’s not the case with a four wheeler. So, the whole point is unless
there is some way where these two issues are addressed, I don’t think
anything significant is going to happen.
It gives the optimistic view about the industry and the overall industry
shows positive growths which recommend the investors to keep a good
watch on the major’s players to benefit in terms of returns on their
investments.
RECENT TRENDS IN TWO WHEELER SECTOR
The international trends suggest that the growth of the two-wheeler
markets will continue unabated for some time. In value terms, the BRIC
motorcycles market grew by 14.7% between 2006 and 2010 to reach a
value of $32.4 billion (Brazil alone growing by 32% pa). By 2013, the
market is forecast to have a value of $54.7 billion.
The global motorcycle demand has been growing at 6-7% pa and is
estimated to be about 80-85 million units per annum. India has emerged
as one of the key players with a domestic market that is nearly about 11%
of the global market and growing significantly faster. The high base
implies that India and Indian companies are set to enter a stage where
they are likely to be the preferred suppliers for motorcycles. This is likely
to lead to further innovations and efficiency gains.
Of course, the Indian market is significantly different with the segment
below 150 cc being the dominant segment. This is unlike the developed
world, where it is the larger bikes that dominate the market volumes.
Indian consumption is also likely to shift significantly toward
international trends, but in the foreseeable future, it is the smaller bikes
that will remain the mainstay.
At present as many as 72% of the bikes are in the entry segment (defined
as 75 to 125 cc), and 27% are in the executive segment (defined as 125-
250 cc). Only 1% of the bikes are in the premium segment.
The premium segment is expected to continue to be a niche segment and
its share is not expected to grow beyond 2-2.5% over the next decade.
However, that itself implies that it will be a market of about 200,000 to
250,000 annual units, which is substantial and attractive. (As a
comparison, the declining Japanese market currently consumes only
about 350,000 motorcycles annually in the above-250 cc category, having
fallen sharply over the past few years).
CHAPTER 2
RESEARCH DESIGN
INTRODUCTION
Royal Enfield one of the popular brand and highest selling bike in India
and outside India (USA, Europe, Australia etc). Royal Enfield motorcycles had
been sold in India from 1949. In 1955, the Indian government looked for a
suitable motorcycle for its police and army, for use patrolling the country's
border. As far as the motorcycle brand goes, though, it would appear that Royal
Enfield is the only motorcycle brand to span three centuries, and still going,
with continuous production. Product range has widened and the customer has
evolved.
TITLE OF THE STUDY
“A Study on Customer Satisfaction towards ROYAL ENFIELD
BIKES, Bangalore”
STATEMENT OF THE PROBLEM
Customer satisfaction plays a crucial role in enabling an organization to
change and develop with customers. Keeping the existing customer contended
is generally much easier, takes less time and involves less expense. The reason
for this is that it takes more time to find new prospective customer. In this
context study is conducted with special reference to customer satisfaction. A
company can earn more profits only when it has strong customer care towards
product and services offered by the company. So to have strong customer care it
has to provide a competitive price further advertising to increase.
OBJECTIVES OF THE STUDY
1. To understand the reasons for purchasing Royal Enfield bikes.
2. To know about the experience after purchase relating various parameters
(Service, bike performance, mileage etc).
3. To ascertain the barriers to purchasing a Bullet for a prospective
customer.
4. To ascertain the factors that affects the choice of a Bullet as a motorcycle
for common man.
5. To propose an effective Promotional campaign plan for brand Royal
Enfield.
6. To determine the customer’s satisfaction regarding bikes and after sales
service.
SCOPE OF THE STUDY
This study includes Customer’s response and awareness towards the brand,
products and services of Royal Enfield. The results are limited by the sample
size 75 numbers and therefore the opinion of only selected customers is taken
into consideration. Mainly this study is conducted in Bangalore and the scope is
limited.
OPERATIONAL DEFINITIONS
1. Customer- A customer (also known as a client, buyer, or purchaser) is
usually used to refer to a current or potential buyer or user of the products
of an individual or organization, called the supplier, seller, or vendor.
2. Customer Satisfaction- A business term, is a measure of how products
and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of
customers, or percentage of total customers, whose reported experience
with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals."
3. Respondents- A person who replies to something, esp. one supplying
information for a survey or questionnaire or responding to an
advertisement.
4. Objective- An end that can be reasonably achieved within an expected
timeframe and with available resources.
5. Bike- A motor vehicle with two wheels and a strong frame.
6. Buying- To acquire in exchange for money or its equivalent purchase.
RESEARCH METHODOLOGY
The research will be carried out in various phases that constitute an
approach of working from whole to part. It includes subsequent phases trying to
go deeper into the user’s psyche and develop a thorough understanding of what
a user looks for while buying a bike.
The first phase is completely internal where it is stormed over the most effective
route of action, considering that Bullet users in Bangalore are more in number.
The second phase is with some of the seasoned bikers who have been using
Bullets for some time now and are generally known and respected amongst the
Bullet community.
The third phase is with some respondents who will be interviewed with the help
of questionnaire keeping in mind the time and cost constraints.
TOOLS OF DATA COLLECTION
The information relevant for study was drawn from Primary data collected
through survey method, which alone was not sufficient. Hence Secondary data
was collected to study successfully.
Primary data- In order to find out customer satisfaction regarding bikes
of Royal Enfield Primary Data was collected by personally visiting the
dealerships and showrooms. With the help of a well laid questionnaire, I
took the feedback from the customers who were coming for the services
of their bikes at the dealerships. As well as I contacted some of the
customers through telex calling by taking the data about the customers
from the customer data register of the dealership. I interviewed them and
discussed with the showroom staff as well as with the employees at Royal
Enfield which helped me to prepare the research Report.
Secondary data- The Secondary Data collection involved internet
search, browsing magazines, newspapers and articles and papers related
to the two wheeler industry in India. Numerous Journals and books
related to the topic were also browsed to understand the dynamics of the
industry.
SAMPLE DESIGN
The research was carried out in various phases that constituted an
approach of working from whole to part. It included subsequent phases trying to
go deeper into the user’s psyche and develop a thorough understanding of what
the user looks for while buying a bike. In order to get a perspective from non-
Bullet riders as to what are the reasons for not choosing a Bullet, I administered
the same questionnaire to riders who used other motorcycles keeping in mind
the time and cost constraints. For the customer satisfaction study a sample of 75
persons was chosen from the in Bangalore city. The sample was judgmental and
methodology was convenient random sampling.
Size of Sample 75
Sampling technique Convenient Random Sampling
method
Location from which samples were
taken
Bangalore city
PLAN OF ANALYSIS
Raw Primary data has been collected with help of questionnaire. The raw
data has been tabulated with the help of table. From the tables, concept,
analysis and inferences are drawn which in turn was used for
interpretation. Based on, these charts were prepared to better pictorial
understanding of the study.
From the set of inferences and interpretation, conclusion have been drawn
which is followed by suggestions, keeping the objectives in mind
throughout the study.
LIMITATIONS OF THE STUDY
This research is geographically restricted to Bangalore city only. Hence
the result cannot be extrapolated to other places.
The study is restricted only to the organized sector of two wheeler
industry.
Sample size was confined to 75 respondents keeping in view of time and
cost constraints.
Findings are based on sample survey. The information executed by
respondents may or may not be true because some respondents may not
be serious. However all possible has been made to collect the information
as authentically as possible.
All interview questions are undisguised or direct. Hence there is a scope
for the respondents to be biased or pretentious.
This project has been taken up at the undergraduate level and the
knowledge and experience of the student is limited and hence may not be
professional enough.
OVERVIEW OF CHAPTER SCHEME
Chapter-1 Introduction- It’s all about the Introduction part. It mainly consists
of introduction to Marketing with its types, approaches, research and market
segmentation. Then comes introduction about Customer Satisfaction with its
steps, customer loyalty and concepts, handling customer complaints, how to
deal with dissatisfied customers and objectives of customer satisfaction
program. Later about automobile industry till date, Indian two wheeler market
and its recent trends.
Chapter-2 Research Design- It consists of the title of the study, statement of
problem, objectives and scope of the study, operational definitions, research
methodology, data collection, sample design, plan of analysis and finally the
limitations of the study.
Chapter-3 Company Profile- This chapter contains the historical background
of the company Royal Enfield, company’s vision and objective, Royal Enfield
products, organizational chart and SWOT analysis of Indian two wheeler
markets and Royal Enfield.
Chapter-4 Data Analysis and Interpretation- This chapter consists of the
analysis and interpretation from the data collected through questionnaires, tables
and graphs representing it.
Chapter-5 Findings and Conclusion - This chapter contains the findings
drawn from the study and final conclusion about the whole project. Also few
suggestions are posted.
Chapter-6 Suggestions- This chapter contains some suggestions to the
company.
CHAPTER 3
COMPANY PROFILE
HISTORY OF THE COMPANY
Mid 19th century England The firm of George Townsend & Co. opened its
doors in the tiny village of Hunt End, near the Worcestershire town of Redditch.
The firm was specialized in sewing needles and machine parts. In the first flush
of enterprise, flitting from one opportunity to another, they chanced upon the
pedal-cycle trade. Little did they know then that it was the beginning of the
making of a legend. Soon, George Townsend & Co. was manufacturing its own
brand of bicycles. And in 1893 its products began to sport the name ‘Enfield’
under the entity Enfield Manufacturing Company
Limited with the trademark ‘Made Like a Gun’.
The marquee was born.
INDUSTRY Motorcycles, Lawnmowers
SUCCESSOR Royal Enfield Motors (formerly Enfield of India)
FOUNDED 1893, as Enfield Manufacturing Co. Ltd.
DEFUNCT 1971
HEADQUARTERS Redditch, Worcestershire, England
KEY PEOPLE Founders Albert Eadie and Robert Walker Smith
PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.
Profile of the OrganizationRoyal Enfield is the makers of the famous Bullet
brand in India. Established in 1955, Royal Enfield
(India) is among the oldest bike companies. It
stems from the British manufacturer, Royal
Enfield at Redditch. Royal Enfield has its
headquarters at Chennai in India.
Bullet bikes are famous for their power, stability and rugged looks. It started in
India for the Indian Army 350cc bikes were imported in kits from the UK and
assembled in Chennai. After a few years, on the insistence of Pandit Jawaharlal
Nehru, the company started producing the bikes in India and added the 500cc
Bullet to its line. Within no time, Bullet became popular in India.
Bullet became known for sheer power,
matchless stability, and rugged looks. It
looked tailor-made for Indian roads.
Motorcyclists in the country dreamt to drive
it. It was particularly a favorite of the Army and Police personnel. In 1990,
Royal Enfield ventured into collaboration with the Eicher Group, a leading
automotive group in India, in 1990, and merged with it in 1994. Apart from
bikes, Eicher Group is involved in the production and sales of Tractors,
Commercial Vehicles, and Automotive Gears. Royal Enfield made continuously
incorporating new technology and systems in its bikes. In 1996, when the
Government of India imposed stringent norms for emission, Royal Enfield was
the first motorcycle manufacturer to comply. It was among the few companies
in India to obtain the WVTA (Whole Vehicle Type Approval) for meeting the
European Community norms. Today, Royal Enfield is considered the oldest
motorcycle model in the world still in production and Bullet is the longest
production run model.
2010 AWARDS
The New Year saw the dawn of India's most prominent automotive show, the
Auto Expo 2010. Held between January 5th and 11th at the Pragati Maidan in
New Delhi, the event saw more than 400 global brands showcasing new
technology, products and show-off concepts.
Royal Enfield was also a part of the event, displaying the recently launched
Royal Enfield Classic 500 EFI and the Royal Enfield Classic 350. The main
stays of the Royal Enfield display were the soon to be launched variants of the
Classic - the Royal Enfield Classic Chrome and the Royal Enfield Classic Battle
Green.
The Expo turned out to be a rather rewarding experience for Royal Enfield with
the Royal Enfield Classic and the Marketing team picking up as many as five
awards.
Awards 2010:
- Apollo Auto India Awards 2010: Best Brand
- Zigwheels.com Viewers Choice Bike of the Year 2009
- Zigwheels.com Bike of the Year above 251cc
- NDTV Profit Car & Bike Awards 2010: Motorcycle of the Year above 250 cc.
- NDTV Profit Car & Bike awards 2010: Best PR Communications Team.
EVOLUTION OF ROYAL ENFIELD
THE BEGINNING (1851 – 1890)
Hunt End, England was a village of several small
mills manufacturing needles and fish-hooks. It
was here in 1851 that George Townsend put up
his needle-making mill, which he named Givry Works. But it wasn’t until his
passing away that his son, George Jr. and his half-brother brought into Givry
Works one of the first 'boneshakers' – a crude cycle. It had a backbone of iron,
with wooden wheels, iron tires and pedals of triangular pieces of wood! Though
the bike was a source of some amusement, George and his team felt they could
easily improve on it. The earliest modern safety bicycle with two wheels of
equal size had appeared in about 1880. All manufacturers were trying their hand
at this new venture. So was George Townsend Jr. By luck, he chanced upon an
invention in his neighbourhood – a saddle that only used one length of wire in
the two springs and in the framework. This was adopted, patented and marketed
as the 'Townsend Cyclists Saddle & Spring'. He had entered the bicycle parts
trade!
From bicycle parts, Townsend slowly moved on to producing bicycles himself.
He was also supplying a wide range of parts to other manufacturers - Givry
Works was growing rapidly. Over the next three years he developed his own
range of over two-dozen machines. Each machine, known locally as the
'Townsend cycle' was reputed for its sturdy frame, a character that all Enfield
bikes would follow.
THE COMING INTO BEING (1891 – 1900)
1891 A Little Trouble-Townsend got himself into a bit of financial trouble in
about 1890 and called in some financiers from
Birmingham. Unfortunately, they didn’t quite
see eye to eye. So Townsend parted ways with
the financiers leaving the company to them. The
financiers then brought in Albert Eadie and R.W.
Smith. They took control of Townsend’s in November 1891. The following year
the firm was re-christened ‘The Eadie Manufacturing Company Limited’. Soon
after, Albert Eadie got a lucrative contract to supply precision rifle parts to the
Royal Small Arms Factory in Enfield, Middlesex.
1892 Kick Starting Royal Enfield-A new company was
created to market these new design bicycles called
‘The Enfield Manufacturing Company Limited’. By
October 1892, the Enfield bikes were announced to
the public. The following year the word Royal (after the Royal Small Arms
Company) was added and thus Royal Enfield began. Then in 1893 the Royal
Enfield trademark ‘Made like a Gun’ appeared. Britain was caught up in a
patriotic fervor and the slogan caught the spirit of the time. In 1899 the first
mechanical vehicle was advertised by Enfield Cycle Company. It was available
in both tricycle and quadric cycle form, powered by a De Dion 1.5 hp engine.
The high wheels, solid tires, block chains and heavy cross frames had by then
given way to Diamond frames, the Hyde Freewheel, Enfield 2 speed hub and
the well known Eadie Coaster. Then came the ‘Riche Model’ with more refined
fittings. By 1907, the cycle industry was still headquartered at Redditch,
producing run-of-the-mill conventional cycles.
1897-Quadricycles
In 1897, R. W. Smith built himself a quadric
cycle – a simple bike with four wheels and a
French engine placed under the saddle between
the rear wheels. During the next two years several developments were made.
About then, an Enfield quadric cycle completed the 1,000-miles road trial of
1900 organized by the Automobile Club of Great Britain and Ireland. The
Enfield vehicle was awarded the silver medal, although it had its share of
troubles and breakdowns.
MOTORCYCLES (1900 - 1910)
1904-Four Wheelers and Three
Buoyed by success, Smith and Eadie decided to
extend the range of quadric cycles and tricycles to
include motorcars. The first Royal Enfield cars
were built in 1901 and were on the road in 1902. It was an 8hp, using a DE
Dion engine. The body was made in Leicester and painted yellow hence car was
known as ‘The Yellow Car’. But this was just a temporary phase, a wild
romance that was soon to die.
1909-Motorcycle Craze
It would be interesting to note here that
motorcycling was thought to be a temporary
enthusiasm that would soon fade out! A brief spin on a motorbike then took
several hours of preparations - tuning the tiny water-cooled engine, getting the
tires pumped, the gears oiled and a supply of spare parts packed. In 1909, Royal
Enfield took the biking world by surprise. At the motorcycle show that year,
they displayed a small 2 1/4 hp V twin-engine machine built in the Swiss
tradition, which ran very well. A slightly larger model was developed in 1911.
A 2 3/4 hp, with all chain drive incorporating the well-known Enfield two-speed
gear. This model stood up until 1914.
THE ROYAL ENFIELD BIKES (1911 - 1920)
1911-Enfield and the War
The First World War began in 1914. Royal
Enfield was called on to supply motorcycles to
the British War Department and even awarded a
contract to build bikes for the Imperial Russian Government during the same
period. The machine gun combination and the 6hp stretcher-carrying outfit were
some of the models produced for the war purpose. Enfield started using its own
engines - a 225cc two-stroke single and a 425cc V-twin about this time. Post-
war, it produced a larger 976cc twin and continued to produce the two-speed
225L until 1929. In 1917, the officers of the Women’s Police Force were issued
with a 2 1/4RE 2 stroke. Interestingly, the models of this period featured 600cc,
inlet-over-exhaust, closed valve gear, hand-operated oil pump, two-speed
countershaft gearbox and chain final drive. In the 1913-1914 Enfield V-Twin
the lubricating oil was contained in a glass tank attached to the frame tube that
ran from the seat to the rear of the engine. This worked perfectly and had the
added advantage of providing an instant visual check of oil levels. The 1915
make 675cc in-line 3-cylinder 2-stroke prototype was the worlds’ first with this
configuration and engine type.
THE INTERWAR YEARS (1921 - 1930)
1924 The First Four-stroke-The interwar year was
a period when the sidecar reached its zenith. In
July 1925, the Royal Enfield V-Twin-engine
Dairyman’s Outfit took part in the ACU Six
Days’ Trial for Commercial Sidecars and
obtained a Special Certificate of Merit for completing an arduous course
without loss of marks. The year 1924 saw the launch of the first Enfield four-
stroke 350cc single using a JAP engine.
1928-The Depression
In 1928, Royal Enfield adopted saddle tanks and
center-spring girder front forks – one of the first
companies to do so. The bikes now with a modern
appearance and comprehensive range meant
continuous sales even during the dark days of depression in Great Britain
towards the end of 1930. In 1927 Royal Enfield produced a 488cc with a four-
speed gearbox, a new 225cc side-valve bike in 1928, and a four-stroke single in
1931. Several machines were produced in the next decade, from a tiny two-
stroke 146cc Cycar to an 1140cc V-twin in 1937. Can you even imagine that
Royal Enfield’s range for 1930 consisted of 13 models!
ESTABLISHING BULLET (1931 - 1940)
1933 The Bullet Arrives-In 1931 a four-valve, single-
cylinder was introduced, and christened 'Bullet' in
1932. It had an inclined engine and an exposed
valve gear. It was then that the first use was made
of the now famous Bullet name. Longer stroke, four-valve head exposed valves
and heavily finned crank case were the features that ran from 1932 until the end
of 1934.
1940 The Second World War-The most well known
offering for the Second World War was no doubt
the ‘Flying Flea’. Also known as the ‘Airborne’,
this lightweight 125cc bike was capable of being
dropped by parachute with airborne troupes. The Flea was fitted into a steel
tubular cage called the ‘Bird Cage’, which had a parachute attached to it. The
cage aided in packing turning handlebars easily.
POST WAR BULLETS (1941 - 1950)
1948 Bigger and Better-The 1939 Bullet 350 kick-
started the post-war models. They used two
rocker boxes for the first time. This enabled
better gas flow and consequently higher volumetric efficiency. Royal Enfield’s
own designed and manufactured telescopic front fork placed the Redditch
marquee at the very forefront of motorcycle design. The biggest advancement
introduced by the new Bullet was its swinging arm rear suspension system and
hydraulic damper units themselves. In 1947 Enfield made a J2 - the first model
with a telescopic front end, followed in 1948 by a 500cc twin (Enfield's 25bhp
answer to the Triumph Speed Twin), which stayed in production until 1958.
1949 The Indian Debut-In 1949, the 350cc Bullet
was launched in India, when Madras Motors won
an order from the Indian Army for the supply of
motorcycles. It was the beginning of the reign of the Bullet in the subcontinent.
The Madras Motor Company started off by receiving the Bullet in kits and
simply assembling them. Then they began making the frames. After this Enfield
started sending the engine in parts to be assembled in India. Eventually they
were also manufacturing the engines, which meant that they were making the
complete bike. For the next thirty years, the design of their bike remained
unchanged! In 1950, several models were introduced: the 650cc Meteor twin; a
250cc Clipper; a short stroke 250cc Crusader; 250cc Trials; Super 5;
Continental; 500 Sports Twin; Super Meteor; Constellation and the Interceptor.
A TALE OF TWO CITIES (1951 - 1960)
1951-In the UK…Never before in British
automobile history had so much been done in a
single decade, not just by Royal Enfield, but the
every other marquee of the time. All new
engines, all new configurations, new paint schemes, new capacity classes… the
motorcyclist had never had such a wide choice ever before. The 1950s saw the
market open up both ways, downwards for smaller capacity, light and
maneuverable machines, and upwards for larger capacity, high powered and
reliable motorcycles. The Royal Enfield showrooms in the UK saw everything
from 125cc two strokes to the mighty700ccMeteor.
1955-Meanwhile in Madras…The Indian Army, the sole
reason why the Bullet was brought to India in the first
place, insisted that they would continue doing business
with Madras Motors only if the Bullet was produced indigenously. The Enfield
India Bullet of the late fifties was quite a different motorcycle from the one we
are used to today. Using the famed Lucas Magdyno ignition system, the 1955
Bullet was almost a clone of the 52 Redditch Bullet. The frame, electric tin ware
and rolling chassis, however, were to undergo many changes over the next ten
years, with the Bullet slowly evolving into the familiar form we know and love
today.
A TALE OF TWO CITIES. NO… THREE! (1961 - 1970)
1961-Back in the UK…In 1960, the badge
arrangement with Indian (Of America) had
ended, so Enfield was no longer sold under the
Indian marquee (Royal Enfield rival, British
AMC company, acquired the Indian Sales Corp.
in 1959). However, in 1961, Eddie Mulder won the Big Bear Enduro on an
Enfield, which
gave the company a new foothold in the U.S. under its own name and started a
new marketing of the product. Models available in the U.S. that year included a
700cc twin and six street scramblers, ranging from the 250cc Hornet to the
500cc Fury (essentially the single-cylinder Bullet) to the 700cc Interceptor.
Elliot Shulz also dominated the half-mile dirt track in Los Angeles on an
Enfield that year. Enfield won 31 out of 39 races in 1961 and had several
spectacular victories in 1964.Royal Enfield had arrived on The Continent! But
things at Redditch had hit a bad patch.
1963-But back home in Madras…By 1970, Enfield
India was a company established in its own
right, and with a production line going full
steam, the need for collaboration with Enfield of the UK and Villiers of the UK
was no longer seen. But the Bullet flew true and strong. A number of changes
had already been made to the tin ware on the Bullet. Mudgaurd design took on
different forms, taking into account the wet, slushy and messy road conditions
during the Indian monsoon. The Magdyno also gave way to the alternator
‘Delco’ ignition system. And front and rear hubs were designed to provide more
efficient cooling for Indian conditions, and thus improve braking performance.
ALL THAT ENFIELD'S ISN'T A BULLET (1971 - 1980)
1973 The Mini Bullet-With the success of the
Sherpa, Enfield India launched the 173cc
Villiers-powered Crusader in India in 1973. A
totally indigenous effort, this small motorcycle
used many Bullet chassis parts, including fork
legs and mudguards, and instantly found a market among the many that wanted
a Bullet, but were diffident about handling it’s weight and size. The Mini Bullet
too was introduced this year. This motorcycle was a 200cc two stroke sporting
‘contemporary’ design. Enfield India attempted to reach out to the young
market, providing them with a zippy, reliable and economical two-stroke.
TOUGH TIMES AHEAD (1981 - 1990)
1983 Here comes the Lightweights-Like the adage
that goes, "when the going got tough, that's when
the tough get going". Enfield India got squarely
into the fray with a slew of lightweight machines. The 50cc Silver Plus step-
through and Explorer motorcycle are launched. Powered by the Zundapp-
engineered 50cc, 6.5hp two stroke motors, these bikes redefined the entry-level
segment. The Silver Plus, initially a two-speed and then later a three speed,
found a ready market not only among the young office going male, but among
an increasing number of women who found the step-through design convenient.
The Explorer, with its contemporary bikini fairing and 'fastback' tailpiece. Both
bikes sported alloy wheels, a first in India. Close on the heels of the little
wonders came the Fury 175. Powered by a 175 Zundapp two-stroke engine with
a five-speed gearbox, this refreshingly quick motorcycle came fitted with a
hydraulic disc brake. Again a first in the country. And a bike, many feel, much
too early in INDIA.
1984 Brand New Vintages-The 80s also saw the
Bullet in many different avatars. The Deluxe
models appeared, in resplendent chrome and
metallic colors, and 12 volt electrical were offered
as an option, to aid in brighter lighting and easier starting. It was also the year
when Enfield India grew confident enough about their flagship product to begin
sending 'coals back to Newcastle'. Owing to their status as 'brand new vintages',
Enfield Bullets found a strong niche market in the UK and Europe, among
people looking to come back to motorcycling.
ENFIELD BECOMES ROYAL ENFIELD (1991 - 2000)
1990 Heavy Fuel-The 1990's saw many revolutionary models from the company.
The Taurus Diesel was the first production Diesel motorcycle in the world.
1993 Bullet 500-The Bullet 500 was launched in
June this year. It went on to become the most
coveted model.
1994 Eicher acquires Enfield-In March the ailing
company got a new lease of life when Eicher
group acquired Enfield India Company. The
company name changed to Royal Enfield Motors
Limited.
ROYAL ENFIELD (2001 - 2010)
2001-The Dare Devils, the motorcycle display team of the Corps of Signals,
Jabalpur forms a Human Pyramid of 201 men on 10 Enfield 350cc bikes and
rides a distance of more than 200 meters.
2002- India’s first Cruiser – The
‘THUNDERBIRD’- is launched.BBC Wheels
awards it ‘The Best Cruiser 2002’ title. The Bullet Machismo enters commercial
production. Dan Holmes and Johnny Szoldrak won the National Road Race
Championship (60’s Class) on a Bullet.
2003
The first ‘RIDER MANIA’ gets together is held in
Goa.
REDS are formed in Pune.
The Bullet enters the Automotive ‘Hall of Pride’ at the ICICI Overdrive awards.
1000 Riders descend on Redditch for the Royal Enfield Owners Club 25th
Anniversary.
Royal Enfield is one of the top ten 125-500 cc brands in UK.
2004-The 2004 Bullet Electra is launched.
The retro styled Bullet Machismo is rated
‘No.1Cruiser’ in TNS Auto car survey.The Bullet
Electra International with a lean-burn engine is launched in the UK.34 men ride
simultaneously on a Bullet, setting a new world record.
2005
Royal Enfield India Celebrates 50 glorious
years of motorcycling and unveils a
blueprint for the future. The 2005 Bullet
Electra features a revolutionary 5-Speed left side gear shift that makes the
marquee more accessible to motorcyclists. The Legend rides on…
2006
Royal Enfield develops a fully integrated Twin Spark, 5-Speed engine that
delivers a dramatic increase in performance and efficiency. The new engine will
power all domestic and International models from 2007 onwards.
2007
Royal Enfield launches the all new limited edition
Machismo 500LB with customized accessories.
The legendary Bullet 350 needs no
introduction. Now Bullet 350 is with all new
UCE engine. This classic machine has kept
place with advances in engineering and
ergonomics without diluting its impeccable pedigree.
A long wheel base and bigger tires provide increased stability and road grip,
making it ideal for long distance travel.Its aristocratic black & gold livery and
thumping engine beat remind passers-by that they are in the presence of
automotive royalty.
2008
The Thunderbird Twins Park will be the first model to feature Royal Enfield’s
revolutionary Unit Construction Engine. All the well loved features of the
Thunderbird have been retained and enhanced in some cases. Also, the twin
benefit of improved performance and engine efficiency makes this motorcycle
hard to beat in terms of pure riding pleasure and visual delight. The
evolutionary mix of old and new features in this motorcycle will surely delight
its owners.
2009
The smaller twin of the Classic 500, the Classic 350 will hold its own against
any other motorcycle and then pull some more. The Classic 350 shares its
power plant with the Legendary Thunderbird. The torque to flatten mountains
and the fuel efficiency to cross entire ranges comes in the same understated yet
charming styling. This is a motorcycle that does not need to shout to be heard.
Born of a rich heritage and bred with Royal Elegance this 350cc thumper has all
the qualities of a typical Royal Enfield. Appreciated then, appreciated now...
Why ride a lesser bike. Nothing more to be said.
The Classic 500 comes to India. Armed with a potent fuel injected 500cc engine
and clothed in a disarmingly appealing post war styling, this promises to be the
most coveted Royal Enfield in history. For those who want it all. The power, the
fuel efficiency, the reliability and simple, yet drop dead gorgeous classic
styling. The classic turns heads not because it wants to but because it can’t help
it. You will appreciate the beat not just for the music it creates but also for the
muted feeling of strength and power that it signifies. The view is simply better
when you are astride a Royal Enfield Classic 500 – whether moving or still.
Nothing more to be said.
Army's stunt riders break record-
ARMY PERSONNEL IN BANGALORE SET RECORD OF
CARRYING 48 PERSONS ON ONE BIKE Indian Army
personnel broke a world record by being the only team in the world to cross a
staggering distance of 1000 meters carrying 48 persons on a single moving 500
cc Royal Enfield motorcycle. 'Tornadoes', the motorcycle display team of Army
Service Corps today broke two world records by being the only team to achieve
a staggering distance of 1100 meters with 54 persons on a single bike. They
broke the record of Corps of Military Police who carried 48 persons on a single
moving 500 CC motorcycle here recently. The team while exhibiting
extraordinary skill, courage, endurance and mental strength, entered the annals
of record books by performing this breathtaking feat on a 500 CC Royal Enfield
motorcycle at the Runway of Air Force Station Yelahanka in the presence of a
large number of military and civil dignitaries. The 'Tornadoes' was raised in
1982 after having given a stupendous display of daredevilry in the 1982 Asian
Games. "Since then the men of the Tornadoes Team by their sheer grit,
determination and spirit of adventure have created a niche for themselves by
rewriting various records," the release said. The team at one point of time had
achieved the distinction of holding seven world and national records of varying
degrees of complexity and fortitude, it said.
ORGANISATIONAL STRUCTURE
GENERAL MANAGER
(Proprietor)
Service ManagerSales Manager Service Manager
SWOT ANALYSIS
MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET
Showroom
In charge charge
Service
Supervisor
Accountant
Team
Manager
Service
Staffs
Assistant
Accountant
Sales
Representative
GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES
A Bajaj, Hero Honda Highly diversified
Aggressive promotion
- High buyer power
- High competitive
rivalry
- High entry barriers
B TVS Selectively diversified
Aggressive Promotion
- Low entry barriers
- Narrow product lines imply that aggressive promotions can eat into market share
C Honda, Yamaha Selectively diversified
Moderate Promotion
-High threat of
substitution (Rs 1 lakh car)
- Low entry barriers
D Royal Enfield Highly specialized
Low Promotion
- Low buyer power, high brand loyalty
- Product diversification will imply risk of brand dilution
SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY
STRENGTHS
Established brands Strong Brand Name Fuel efficient Style statement Convenient in heavy traffic Cheap and affordable Easy and cheap finance availability Patents Good reputation among customers
WEAKNESSES
Extremely price sensitive Short PLC High R and D costs
OPPURTUNITIES
Growing premium segment Increasing dispensable income Environmental concerns Exports increasing Very strong demand in the 100cc.
segment dominated by limited players.
THREATS
The Rs.1 Lakh car Cut throat competition Increasing number of players in the
market Rising raw material costs Increasing rates of interest on
finance
SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA
STRENGTHS
Size and scale of parent company Effective Advertising Capability Committed and dedicated staff High emphasis on R and D Experience in the market Established brand Established market channel Power, Speed & Acceleration
WEAKNESSSES
Small showrooms Not much emphasis on aggressive
selling Weak product diversity
OPPURTUNITIES
Growing premium segment Global expansion into the
Caribbean & Central America Expansion of target market (include
women) Increasing dispensable income 1st mover advantage
THREATS
Cut throat competition Increasing number of players in the
market Rising raw material costs Increasing rates of interest on
finance
CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE
AGE NO. OFRESPONDENTS
PERCENTAGE
20-24 30 40%
25-29 19 26%
30-34 14 18%
Above 35 12 16%
TOTAL 75 100%
Analysis
From the above table it is clear that 40% of the respondents are aged between
20 and 24, 26% between 25 and 29, 18% between 30 and 34 and only 16% aged
above 35 years.
Interpretation
It is revealed that majority of respondents are between 20 and 29 years. From
this we can conclude younger generation and middle age are more interested in
Royal Enfield may be because this is the age where they start earning.
GRAPH No.1
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE
40%
26%
18%
16%
20-2425-2930-34Above 35
TABLE No.2
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER
GENDER NO. OFRESPONDENTS
PERCENTAGE
MALE 69 92%
FEMALE 6 8%
TOTAL 75 100%
Analysis
From the above table it is clear that 92% of respondents were male and female
respondents constituted just 8% of total responses.
Interpretation
It is clear that most of the users of Royal Enfield are males mostly because of
the manly look of the bikes.
GRAPH No.2
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER
92%
8%
MaleFemale
TABLE No.3
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS
OCCUPATION NO.OFRESPONDENTS
PERCENTAGE
STUDENT 33 44%
GOVERNMENT SERVICE
5 6%
EX-SERVICEMEN 3 4%
PROFESSIONAL 21 28%
SELF-EMPLOYED 13 18%
TOTAL 75 100%
Analysis
From the above table it is clear that 44% of the respondents were students
pursuing their graduation or post graduation studies and 28% were
professionals. 18% of the respondents were self employed, 4% were ex-
serviceman and 6% belonged to government services.
Interpretation
It is clear that users are mostly Professional males, 20-35 years of age including
some students because of the looks and power of the bike.
GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS
Student Govt service Ex-servicemen Proffesional Self-employed
No. of Respon-dents
0.44 0.06 0.04 0.28 0.18
3%
8%
13%
18%
23%
28%
33%
38%
43%
TABLE No.4
TABLE SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS
INCOME GROUP NO. OFRESPONDENTS
PERCENTAGE
LESS THAN 1,20,000 39 52%
1,20,001-3,60,000 10 14%
3,60,001-7,20,000 14 18%
ABOVE 7,20,000 12 16%
TOTAL 75 100%
Analysis
From the above table it is clear that 52% of the respondents had an annual
income of lesser than 1,20,000, 18% had income between 3,60,001 and
7,20,000, 16% earned more than 7,20,000 per annum and 14% had income
between 120001 to 3,60,000.
Interpretation
It shows that Royal Enfield is placing their products in the appropriate and
reasonable price range and the people of income bracket less than 1,20,000 can
easily afford this Bike.
GRAPH No.4
GRAPH SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS
52%
14%
18%
16%
Less than 1,20,0001,20,001-3,60,0003,60,001-7,20,000Above 7,20,000
TABLE No.5
TABLE SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS PRESENTLY OWN
MODEL NO. OFRESPONDENTS
PERCENTAGE
BULLET 500 11 14%
THUNDER BIRD 7 10%
BULLET ELECTRA 15 20%
MACHISMO 500 6 8%
BULLET 350 16 21%
CLASSIC 500/350 17 23%
OTHERS 3 4%
TOTAL 75 100%
Analysis
From the above it is clear that 14% of the respondents own Bullet 500, 10% of
them own Thunder Bird, 20% of them own Bullet Electra, 8% of them own
Machismo 500, 21% of them own Bullet 350 and 23% of them own Classic
500/350.
Interpretation
It clearly shows that customers are not attracted to only one particular model
due to the variants available and because the Classic 500/350 are the newly
released models they are fast moving now.
GRAPH No.5
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS PRESENTLY OWN
No. of Respondents02468
1012141618
Bullet 500Thunder BirdBullet ElectraMachismo 500Bullet 350Classic 500/350
TABLE No.6
TABLE SHOWING- THE PURCHASING WAY OF THE CUSTOMERS
PURCHASED BY NO. OFRESPONDENTS
PERCENTAGE
CASH 54 72%
LOAN 21 28%
TOTAL 75 100%
Analysis
From the table it clearly shows that the products of Royal Enfield are in the
acceptable price range, as we can see that purchasing way of the 72%
respondents are leading in the CASH sector and 28% on loan basis. Customers
are ready to pay for better facilities and technology and they feel that all bikes
deserves that price which Royal Enfield is offering.
Interpretation
It is clear that customers are easily affording the price of Royal Enfield bikes
and they are not feeling much problem with the amount.
GRAPH No.6
GRAPH SHOWING- THE PURCHASING WAY OF THE CUSTOMERS
CASH LOAN
No.of Respondents 54 21
5
15
25
35
45
55
TABLE No.7
TABLE SHOWING- THE NO OF RESPONDENTS CONSIDERING OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD BIKE
YES/NO NO. OFRESPONDENTS
PERCENTAGE
YES 27 36%
NO 48 64%
TOTAL 75 100%
Analysis
From the table it clearly shows that 36% of the respondents did go consider or
checked for an alternative motorcycle and 64% of them did not consider any
other motorcycle while purchasing their Royal Enfield bike.
Interpretation
It is clear that majority of the customers directly chose Royal Enfield as their
bike and dint even have a look at the nearest alternative bike and this shows the
loyalty of the customers towards the brand Royal Enfield.
GRAPH No.7
GRAPH SHOWING- THE NO OF RESPONDENTS CONSIDERING OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD BIKE
YES
NO
0%10%20%30%40%50%60%70%
36%
64%
No. of Respondents
TABLE No.8
TABLE SHOWING- THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD BIKE
MEDIA NO. OFRESPONDENTS
PERCENTAGE
NEWSPAPERS 6 8%
MAGAZINES 24 32%
FRIENDS 11 14%ROADSHOW 7 10%
TV ADDS 5 6%
WEBSITE/BLOGS 15 20%
SHOWROOM 7 10%
TOTAL 75 100%
Analysis
As we can see here the major promotional tool which is influencing the
customers is Magazines and Website which is around 32% and 20%
respectively, after that the source of awareness among customers is a mixed
response where in 14% from friends, 10% each from road shows and
showroom, finally newspapers consists 8% and 6% from Television adds which
is very poor.
Interpretation
It clearly shows that Advertisements are rarely recalled and are highly
ineffective amongst non-Bullet riders. It’s clear that Royal Enfield should
concentrate on its advertising campaign to reach the customers.
GRAPH No.8
GRAPH SHOWING- THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD BIKE
newspa-per
maga-zines
friends and rela-
tions
roadshow tv adds website show-room
Re-spon-dents
0.08 0.3200000000000
03
0.14 0.1 0.06 0.2 0.1
3%8%
13%18%23%28%33%
TABLE No.9
TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASE OF BIKE
MILEAGE NO. OFRESPONDENTS
PERCENTAGE
45km/lit & Above 5 6%
40-45 16 22%
35-40 26 34%
30-35 18 24%
Below 30 10 14%
TOTAL 75 100%
Analysis
From the above table it is clear that 56% of respondents gain mileage of 35-
45km/lit which is really good, 24% of them between 30-35km/lit, 14% below
30km/lit and 6% above 45km/lit.
Interpretation
It clearly shows that mileage of the Royal Enfield bikes is economical &
mileage between 35 and 40 that too on Indian roads with heavy traffic is a great
deal.
GRAPH No.9
GRAPH SHOWING-THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASE OF BIKE
45km/lt 40-45 35-40 30-35 Below 30
No. of Respondents 5 16 26 18 10
2.5
7.5
12.5
17.5
22.5
27.5
TABLE No.10
TABLE SHOWING- THE BREAKDOWN OF BIKES SINCE PURCHASE OF VEHICLE
FREQUENCY OF BREAKDOWN
NO. OFRESPONDENTS
PERCENTAGE
VERY OFTEN 8 10%
RARELY 19 26%
NOT AT ALL 48 64%
TOTAL 75 100%
Analysis
From the above table it is clear that 64% of the respondents say that there is no
problems or breakdown of their bikes after purchase, 26% say rarely their bikes
get repaired and 10% of respondents say their bikes breakdown very often.
Interpretation
It is clear that most of the Royal Enfield bikes doesn’t breakdown at all and it is
not problematic and not involved into repair always.
GRAPH No.10
GRAPH SHOWING- THE BREAKDOWN OF BIKES SINCE PURCHASE OF VEHICLE
10%
26%
64%
Very oftenRarelyNot at all
TABLE No.11
TABLE SHOWING- THE PLACE OF PURCHASE OF ROYAL ENFIELD BIKES & THEIR SATISFACTION LEVEL TOWARDS IT
PLACE OFPURCHASE
NO. OFRESPONDENTS
PERCENTAGE
SHOWROOM 48 64%DIRECT SECOND
HAND22 30%
USED VEHICLES DEALERSHIP
5 6%
TOTAL 75 100%
RESPONSE FOR SATISFACTION
NO. OFRESPONDENTS
PERCENTAGE
YES 57 76%NO 18 24%
TOTAL 75 100%
Analysis
64% of the Bullet riders prefer to buy their bike from showroom only and 30% may buy it Second hand dircetly. But none of them buys the bike through brokers which shows that reliability of an outside party is low while making the purchase decision among the Bullet riders.Also 76% of respondents are very much satisfied with the place of purchase of their bike and 24% are not at all satisfied.
Interpretation
It is clear that most of the respondents prefer to buy their bike brand new from showroom only and majority of the customers are very much satisfied with the place of purchase of their Royal Enfield bike. This also shows there is more demand for new bikes.
GRAPH No.11
GRAPH SHOWING- THE PLACE OF PURCHASE OF ROYAL ENFIELD BIKES AND THEIR SATISFACTION RESPONSE TOWARDS IT
Showroom Direct second hand Used vehicles dealership0
5
10
15
20
25
30
35
40
45
50
48
22
5
No. pf Respondents
76%
24%
Point of satisfaction
SatisfiedNot Satisfied
TABLE No.12
TABLE SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE MARKET
AVAILABILITY NO.OFRESPONDENTS
PERCENTAGE
READILY AVAILABLE
51 68%
DON’T GET THEM READILY
8 10%
DON’T HAVE GOOD SPARES
SUPPLY
12 16%
MAJOR HEADACHE
4 6%
TOTAL 75 100%
Analysis
From the above it is clear that 68% of the respondents are satisfied with the
availability of spare parts and remaining 32% of respondents are discontent with
the availability of spare parts.
Interpretation
It is clear that majority of the respondents are satisfied with spare parts
availability and we can say that Royal Enfield has good distribution channel for
spare parts in the city.
GRAPH No.12
GRAPH SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE MARKET
68%
10%
16%
6%
Readily AvailableDon't get them readilyDon't have good spares supplyMajor headache
TABLE No.13
TABLE SHOWING - THE MAJOR PROBLEMS AFTER PURCHASING ROYAL ENFIELD BIKE
PROBLEMS NO. OFRESPONDENTS
PERCENTAGE
HIGH MAINTENANCE
11 14%
POOR AFTER SALES SERVICE
7 10%
HIGH PRICE 15 20%
LOW MILEAGE 8 10%
NOISY VEHICLE 3 4%
NO PROBLEM 31 42%
TOTAL 75 100%
Analysis
Maximum number of people (42%) described that there is no problem with the
bike after purchase, 20% had an issue with the price range, third biggest
problem was 14% of them felt high maintenance was required for the bike, only
4% of them felt it was noisy vehicle and while 10% of respondents each
refrained because of the low mileage and the poor after sales service of Bullet.
Interpretation
It is clear that majority of the people who choose Royal Enfield as their bike don’t have any problems or issues with their bike’s performance.
GRAPH No.13
GRAPH SHOWING-THE MAJOR PROBLEMS AFTER PURCHASING ROYAL ENFIELD BIKE
14%
10%
20%
10%4%
42%
High maintainancePoor after sales serviceHigh PriceLow mileageNoisy vehicleNo problem
TABLE NO.14
TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND PICK UP
RATING NO. OFRESPONDENTS
PERCENTAGE
POOR 4 6%
AVERAGE 8 10%
GOOD 20 26%
EXCELLENT 43 58%
TOTAL 75 100%
Analysis
From the above table it is clear that 6% of the respondents rated very poor and
they were not at all satisfied, 10% of them rated average, 26% of them rated
good and maximum number of respondents i.e. 58% rated excellent and these
respondents were very much satisfied with their bikes power and pick up.
Interpretation
It is clear that majority of the respondents are satisfied with their bikes power
and pick up. This shows Royal Enfield has an excellent satisfaction level within
the customer.
GRAPH No.14
GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND PICK UP
5
15
25
35
45
Poor
Average
Good
Excellent
TABLE No.15
TABLE SHOWING-THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO COMFORT AND SAFETY
RATING NO. OFRESPONDENTS
PERCENTAGE
POOR 7 9%
AVERAGE 12 16%
GOOD 24 32%
EXCELLENT 32 43%
TOTAL 75 100%
Analysis
From the above table it is clear that 9% of the respondents rated very poor and
they were not at all satisfied, 16% of them rated average, 32% of them rated
good and maximum number of respondents i.e. 43% rated excellent and these
respondents were very much satisfied with their bikes comfort and safety.
Interpretation
It is clear that majority of the respondents are satisfied with their bikes comfort
and safety. This shows Royal Enfield has an excellent satisfaction level within
the customers.
GRAPH No.15
GRAPH SHOWING-THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO COMFORT AND SAFETY
9%
16%
32%
43%
PoorAverageGoodExellent
TABLE No.16
TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO AFTER SALES SERVICE
RATING NO. OFRESPONDENTS
PERCENTAGE
POOR 11 14%
AVERAGE 13 18%
GOOD 27 36%
EXCELLENT 24 32%
TOTAL 75 100%
Analysis
From the above table it is clear that 14% of the respondents rated very poor and
they were not at all satisfied, 18% of them rated average, 36% of them rated
good and maximum number of respondents i.e. 32% rated excellent and these
respondents were very much satisfied with the after sales service.
Interpretation
It is clear that majority of the respondents are satisfied with their after sales
service and few respondents are not at all satisfied. This shows Royal Enfield
has a good satisfaction level within the customers.
GRAPH No.16
GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO AFTER SALES SERVICE
Poor Average Good Excellent0
5
10
15
20
25
30
1113
27
24
No. of Respondents
TABLE No.17
TABLE SHOWING- THE RESPONDENTS OPINION OF THE MAJOR BARRIER FOR NOT PURCHASING ROYAL ENFIELD BIKES BY NON-BULLET RIDERS
PROBLEMS NO. OFRESPONDENTS
PERCENTAGE
HIGH MAINTENANCE
11 14%
POOR AFTER SALES SERVICE
7 10%
HIGH PRICE 15 20%
LOW MILEAGE 8 10%
NOISY VEHICLE 3 4%
POOR PROMOTION 31 42%
TOTAL 75 100%
Analysis
Maximum number of people (42%) described that there is very poor promotion
for the Royal Enfield, 20% had an issue with the price range, third biggest
problem was 14% of them felt high maintenance was required for the bike, only
4% of them felt it was noisy vehicle and while 10% of respondents each
refrained because of the low mileage and the poor after sales service of Bullet.
Interpretation
It is clear that People who choose not to buy Bullets do so because of low
promotion, high price and maintenance. So Royal Enfield should concentrate on
their promotional campaigns and make sure it reaches the common man.
GRAPH No.17
GRAPH SHOWING- THE RESPONDENTS OPINION OF THE MAJOR BARRIER FOR NOT PURCHASING ROYAL ENFIELD BIKES BY NON-BULLET RIDERS
14%
10%
20%
10%4%
42%
High maintainencePoor after sales serviceHigh priceLow mileageNoisy vehiclePoor Promotion
TABLE No.18
TABLE SHOWING - THE PLACE OF SERVICE OF RESPONDENTS BIKE
PLACE OF SERVICE
NO. OFRESPONDENTS
PERCENTAGE
SHOWROOM 34 45%
WELL KNOWN BULLET
MECHANIC
29 38%
NEARBY GARAGE 4 6%
SELF SERVICE 8 11%
TOTAL 75 100%
Analysis
From the above table we can say that 45% of the respondents prefer their
service of their bike in showroom, 38% of them with well known bullet
mechanic, 6% of them in nearby garage and 11% of them prefer self service to
their bike.
Interpretation
It is clear that most of the respondents service their bikes in the showrooms and
also with a well known bullet mechanic. There is no much difference but this
shows people have less trust with the showroom service.
GRAPH No.18
GRAPH SHOWING- THE PLACE OF SERVICE OF RESPONDENTS BIKE
45%
38%
6%
11%
Showroom Well known bullet mechanicNearby garage Self service
TABLE No.19
TABLE SHOWING- THE RESPONDENTS OPINION AND LEVEL OF SATISFACTION ABOUT THE COMPANY TAKING ACTION TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS
YES/NO NO. OF RESPONDENTS
PERCENTAGE
YES 55 73%
NO 20 27%
TOTAL 75 100%
RESPONSE FOR SATISFACTION
NO. OF RESPONDENTS
PERCENTAGE
YES 49 66%
NO 26 34%
TOTAL 75 100%
Analysis
The above table shows that 73% of the respondents accept that the company takes action towards the complaints lodged by the customers and 27% disagree for the same. Also the satisfaction level is 66% by the respondents and 34% are not satisfied.
Interpretation
It is clear that most of the respondents agree that the company takes action towards the complaints lodged by the customers and also the satisfaction level of the customers is very high. This shows Royal Enfield checks at the complaints registered by their customers on regular basis to maintain its brand value.
GRAPH No.19
GRAPH SHOWING- THE RESPONDENTS OPINION AND LEVEL OF SATISFACTION ABOUT THE COMPANY TAKING ACTION TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS
Yes
No
0
10
20
30
40
50
60
55
20
No. of Respondents
Point of satisfaction
Yes66%
No34%
TABLE No.20
TABLE SHOWING- THE RESPONDENTS OPINION ABOUT PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE ROYAL ENFIELD CLUB
YES/NO NO. OF RESPONDENTS
PERCENTAGE
YES 62 82%
NO 13 18%
TOTAL 75 100%
Analysis
The above table shows that 82% of the respondents are wants to participate in
the Rider Mania and 18% of them are not interested.
Interpretation
It clearly shows that majority of the respondents are very much interested in
Rider Mania and also shows that respondents are very passionate Enfield fans.
GRAPH NO.20
GRAPH SHOWING- RESPONDENTS OPINION ABOUT PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE ROYAL ENFIELD CLUB
82%
18%
YesNo
CHAPTER 5FINDINGS AND CONCLUSION
FINDINGS
1. It is revealed that majority of users are between 20 to 29 years. From this
we can conclude younger generation and middle age are more interested in
Royal Enfield may be because this is the age where they start earning.
2. It is clear that most of the users of Royal Enfield are males mostly because
of the manly look of the bikes.
3. Users are mostly Professional males, 20-35 years of age including some
students because of the looks and power of the bike.
4. Royal Enfield is placing their products in the appropriate price range. As
the people of this income bracket less than 1,20,000 can easily afford this
Bike.
5. Customers are not attracted to only one particular model due to the
variants available and because the Classic 500/350 is the newly released
models they are fast moving now.
6. Customers are easily affording the price of Royal Enfield bikes and they
are not feeling much problem with the amount and purchasing way of
most of the customers is leading in cash sector.
7. Majority of the customers directly chose Royal Enfield as their bike and
dint even have a look at the nearest alternative bike and this shows the
loyalty of the customers towards the brand Royal Enfield.
8. Advertisements are rarely recalled and are highly ineffective amongst non-
Bullet riders. It’s clear that Royal Enfield should concentrate on its
advertising campaign to reach the customers.
9. It clearly shows that mileage of the Royal Enfield bikes is economical &
mileage between 35 and 40 that too on Indian roads with heavy traffic is a
great deal.
10. Most of the Royal Enfield bikes doesn’t breakdown at all, it is not
problematic and not involved into repair always.
11. It is clear that most of the respondents prefer to buy their bike brand new
from showroom only and majority of the customers are very much
satisfied with the place of purchase of their Royal Enfield bike. This also
shows there is more demand for new bikes.
12. It is clear that majority of the respondents are satisfied with spare parts
availability and we can say that Royal Enfield has good distribution
channel for spare parts in the city.
13. It is clear that majority of the people who choose Royal Enfield as their
bike doesn’t have any problems or issues with their bike’s performance.
14. Majority of the respondents are satisfied with their bikes power and pick
up. This shows Royal Enfield has an excellent satisfaction level within the
customer
15. Majority of the respondents are satisfied with their bikes comfort and
safety. This shows Royal Enfield has an excellent satisfaction level within
the customers.
16. Majority of the respondents are satisfied with their after sales service and
few respondents are not at all satisfied. This shows Royal Enfield has a
good satisfaction level within the customers.
17. It is clear that People who choose not to buy Bullets do so because of low
promotion, high price and maintenance. So Royal Enfield should
concentrate on their promotional campaigns and make sure it reaches the
common man.
18. It is clear that most of the respondents service their bikes in the
showrooms and also with a well known bullet mechanic. There is no much
difference but this shows people have less trust with the showroom
service.
19.Most of the respondents agree that the company takes action towards the
complaints lodged by the customers and also the satisfaction level of the
customers is very high. This shows Royal Enfield checks at the complaints
registered by their customers on regular basis to maintain its brand value.
20.Majority of the respondents are very much interested in Rider Mania and
also shows that respondents are very passionate Enfield fans.
CONCLUSION
The study has helped Royal Enfield dealers to understand whether
the customers are satisfied or not. If not what are main reasons for
dissatisfaction of customer towards the dealer and what are the ways of
improving the satisfaction level of customer towards dealer.
We can conclude younger generation and middle age are more
interested in Royal Enfield, the buying behavior is governed predominantly by
the need for Power and respect for the iconic Brand and users are mostly
Professional Males, 20-35 years of age, including some students. Most of the
customers are attracted to newly released Classic 350/500, also customers are
easily affording the price of Royal Enfield bikes and customers are very loyal
towards the brand Royal Enfield.
Royal Enfield should concentrate on its advertising campaign to reach
the customers, mileage of the Royal Enfield bikes is very economical and most
of them prefer to buy their bike brand new from showroom with the spare parts
available in market easily.
Royal Enfield has an excellent satisfaction level within the customer for
its power, pick up, comfort, safety and with after sales service.
It is clear that Royal Enfield checks at the complaints registered by their
customers on regular basis to maintain its brand value and entire Royal Enfield
owner are passionate Royal Enfield fans.
CHAPTER 6
SUGGESTIONS
SUGGESTIONS
Aggressive selling- The Company should follow an aggressive selling
concept. A non-aggressive selling concept which is clearly visible in its
advertising campaign which does not hit on the customer rather aims to
provide information in a subtle manner.
Promotional campaign- The Royal Enfield ads seen on electronic and
print media are absolutely out of touch with the Indian culture and
thought process. An Indian consumer irrespective of their income level
has a soft corner for traditions and culture of India. Hence, all companies
including market leaders like Hero Honda and Bajaj capitalize on this
behavior of customers and design their ad campaigns keeping India in
mind.
Weak follow up from dealerships- It was observed during the study that
Royal Enfield was quite weak in following up with prospective
customers.
Measures should be taken to improve its dealership- Showrooms are very
small in size and do not reflect the quality and scale of Royal Enfield in
the market.
Should improve the after sales service- During the survey it was found
that Royal Enfield is not satisfying all their customers in after sales
services, employees at dealership sometimes use harsh words and become
rude to the customers, parts of the bike are not easily available in the
market. This is the major drawback in capturing the market share so
Royal Enfield should take some better steps to satisfy and retain their
customers.
Increase in customer query response- During the study it was found that
dealers are not satisfying the queries of customers and so suggested to
increase customer query response by dealers.
Youth oriented promotion- Company should focus more on younger
generation as it can increase sales and market share in Bangalore.
Purchasing way of customers- Customers are easily affording the price of
Royal Enfield bikes and they are not feeling much problem with the
amount. But the company should also take some steps towards making
purchase easier through bank loans and EMI’s.
Marketing communication- It should focus on satisfying the needs for
Respect, Power, Safety and Comfort.
Brand ambassador- A non-flamboyant well-built brand ambassador may
be chosen to represent the Brand. It is necessary for Royal Enfield to have
a brand ambassador from India to connect with the Indian customer.
Build iconic status- Royal Enfield should concentrate on building around
the iconic status it already enjoys if it plans to attract customers migrating
to other manufacturers.
ANNEXURE
QUESTIONNAIRE
I am Venu S, a final year BBM student from Presidency College. This information is required for successful completion of my project ‘A Study on Customer Satisfaction towards Royal Enfield bikes, Bangalore.’ I request you to kindly spare some of your time and fill the questionnaire below. Thank you.
RESPONDENT INFORMATION
Name:
1. Age:
2. Gender : Male Female
3. Occupation:
Student Government service
Professional Self employed other
4. Annual Income:
Less than 1, 20,000 1, 20,001-3, 60,000
3, 60,001-7, 20,000 Above 7, 20,000
5. Which model of Royal Enfield do you presently own?
Bullet 500 Thunder Bird
Bullet Electra Machismo 500 Bullet 350
Classic 500/350 others
6. How did u purchase the bike?
Cash Loan
7. Did u consider other motorcycle while buying the Royal Enfield bike?
Yes No
- If yes which bike did you compare with?
Bike cc
8. Please specify your source of awareness of Royal Enfield while buying your bike?
Newspapers Magazines Friends
Road shows TV Adds Website/blogs
Showroom Others
9. Please specify your bike’s mileage?
45km/lit & above 40-45
35-40 30-35 Below 30
- Are you satisfied with the bikes mileage?Yes No
10. Frequency of breakdown of your bike?
Very often rarely Not at all
11. Which place did you prefer to purchase your Royal Enfield bike?
Showroom Direct second hand
Used vehicles dealership
Are you satisfied purchasing there? YES NO
12. How about the availability of spare parts?
Readily available don’t get them readily
Don’t have good spares supply Major headache
13. Any major problems after purchasing Royal Enfield bike?
No problem
High maintenance Poor after sales service
High price Low mileage Noisy vehicle
14. How many stars will u rate for your satisfaction level with respect to power and pick up of your Royal Enfield bike? Poor Average Good Excellent
15. How many stars will u rate for your satisfaction level with respect to comfort and safety of your Royal Enfield bike?
16. How many stars will u rate for your satisfaction level with respect to after sales service of your Royal Enfield bike?
17. How does your friend say to your Royal Enfield bike?
Trendy Macho
High Cost Low mileage
Expensive spare parts
Others- If any
18. What do you think is the major barrier for not purchasing Royal Enfield bikes by non-bullet riders?
High Maintenance Poor after sales service
High price Low mileage
Poor promotion Noisy vehicle
19. Where do you service your Royal Enfield bike?
Showroom Well known bullet mechanic
Nearby garage self service
20. Do you agree that company takes action towards the complaints lodged by the customers?
YES NO
Are you satisfied with their replies?
YES NO
21. How many times have you suggested your friends or relatives to purchase of Royal Enfield bikes?
1-2 3-4 More than 5
22. Would you like to participate in the Rider Mania organized by the Royal Enfield club?
YES NO
23.Any suggestions
BIBLIOGRAPHY
BIBLIOGRAPHY
Books Referred
Marketing Management, 13th edition - Philip Kotler
Survey Research Methods - Charles Babbie
Magazines Referred
The Bullet-In, The Magazine For All Royal Enfield Bullet
Enthusiasts.
Royal Enfield Magazine, The BEAT.
Websites Referred
www.google.com
www.royalenfield.com
www.wikipedia.org
www.enfieldmotorcycles.com