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PART-A INTRODUCTION
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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 endusers. Throughout history, marketing has changed considerably in time with consumer tastes.
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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.
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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.
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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.
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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.
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.
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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.
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.
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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-ofmouth 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..
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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.
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.
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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.
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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 relationshipbased marketing strategies. As a result of the focus on relationships in marketing research, customer loyalty gained importance within research.
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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.
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.
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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.
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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.
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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.
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
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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.
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COMPANY FUNCTION
Sales
Marketing
Distribution
After Sales
Accounts
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1. Objectives setting: For every month, target sales will be fixed by the Sales
Manager at the showroom.
7. 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.
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.
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 youre on his or her side and that you empathize with the situation.
5. Ask the customer, "What would be an acceptable solution to you?"-Whether or not the customer knows what a good solution would be, Ive
found its 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.
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PART-B
1.INDUSTRY PROFILE
THE FIRST MOTORCYCLE
We are going to begin by looking at the first bikes. They didnt work very well and they were not very fast but moved with being drawn by a horse or being pedalled. When you look at a motorcycle today, have you ever thought what the old bikes were like? Were they easy to ride? How fast did they go? Were they comfortable? To answer all these questions, we have got to go quite a long way back say about 100 years. The world was very different in those days and there must have been a feeling of great excitement. There was a great interest in science and engineering and almost every week, some fantastic new invention appeared. First there were gaslights and then electricity and new cures for many kinds of illnesses were always being announced this was period when people started thinking about how to travel quickly and safely. Before cars and bikes, the quickest mode of travelling was steam trains. And if there was a near to where you wanted to go then the next best thing was a stagecoach or paddle streamer. No one, except the very rich, could get from their own house to where they were going very quickly. Then in 1885, a German called Gottlieb Daimler made a small engine, which ran on a kind of petrol. It wasnt a very good engine but it just worked. Daimler fitted the engine to a cycle type frame, which exactly had one wheel at the front and two wheels at the rear. In the following year, another German, Wilhelm Maybach rode the Daimler bike for a few meters- something which everyone thought was very brave. At last, a way of moving people directly from one place to another had been invented.
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Not everybody thought that this was a good idea. In England there was a law, which said that no vehicle powered by an engine could go faster than 4mph which is about as fast a s you walk. Many of the people were afraid and urged that the bike should be banned. But in 1896 an act was passed that bikes can travel 12mph speed-, which is considered to be a fantastic speed. At the same time, a French engineer called De Dion made the first real good engine for motorcycle and soon everyone was having a try at making complete machine. And this was the turning point where bike started getting its actual look many ideas poured in and were given shapes also.
It was considered to be best mode of travelling from remote area to urban and from plains to rough terrain. Where a horse rider could not think of moving, their bikes were able to do so. Moreover, a horse rider and horse would take rest after certain interval of travelling, the bikes did not require since it was a machine. One such British Bike, which actually made its appearance in the scenario, was Royal Enfield and was produced in 1931 with four valve system. The name of the bike was given in 1932 with a suitable name of bullet which exactly had a good resemblance of the todays bike. In other words t he modern bikes have come into shape shown by Royal Enfield. In 1948, the first 350-bullet roadster was introduced. Although it was a new motorcycle with many design innovations. It was the first British produced, which had a rear swing arm. It also had an oil filter and alloy primary chain case.
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Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.
Nature of market
In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalized and competitive era. Two major results of policy changes during these years in twowheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes
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The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha Scooterettes/Mopeds.), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).
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Profile of the Organization Royal Enfield is the makers of the famous Bullet brand in India. Established in 1955, Royal Enfield (India) is among the oldest bike companies. manufacturer, It stems from the British
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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
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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.
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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 didnt 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 Townsends in November 1891. The following year the firm was rechristened 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.
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.
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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 wellknown Enfield two-speed gear. This model stood up until 1914.
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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 Dairymans 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 centerspring 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 Enfields range for 1930 consisted of 13 models!
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ESTABLISHING BULLET (1931 - 1940) 1933 The Bullet Arrives-In 1931 a four-valve, singlecylinder 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.
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A TALE OF TWO CITIES. NO THREE! (1961 - 1970) 1961-Back in the UKIn 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.
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1963-But back home in MadrasBy 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 Villierspowered 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 its 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.
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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.
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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.
2005 Royal Enfield India Celebrates 50 glorious years of motorcycling and unveils a blueprint for the future. The 2005 Bullet Electra features a revolutionary 5Speed 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.
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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 Enfields 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
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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.
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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.
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STRATEGY:
Royal Enfield Motors has started working on a new strategy with less waiting periods, more frequent launches and capacity ramp-up, thereby leading to a significant growth after transferring from its traditional set up to updated engine platform. The company registered a growth of 45 percent in the export region with as many as 3,630 units in 2012 in comparison to 2,953 units in 2011.
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Sales Manager
Service Manager
Service Manager
Showroom In charge
Service Supervisor
Accountant
Team Manager
Service Staffs
Assistant Accountant
Sales Representative
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SYSTEMS:
The daily activities and procedures that staff members engage in to get the job done.
SHARED VALUE:
These are called super ordinate goals when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.
STYLE:
Royal Enfield Motors, the manufacturer of the Bullet motorcycle and a division of the Rs 1,300 crore Eicher Group, is slated to come out with a radically different street motorcycle, apart from newer versions of the 350cc 'Bullet Machismo' and 'Bullet Thunderbird'. The division of Eicher is also looking at profitability in the next fiscal, whilst working towards offering only two engine options across its product portfolio, according to a senior company official. "The new bike will be radically different in terms of style and usage patterns and the company is hoping for a launch in the next couple of quarters". It is also looking to introduce different variants towards existing models every six to seven months.
STAFF:
The training for new staff along with the new systems and processes has begun. The new factory will have a new, state of the art paint shop which is superior to most other manufacturers in India and will be at par with international standards.
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Many steps are being taken to improve working conditions for workers as well. Also with growing popularity of the brand many passionate riders will join the team for development and production. Also many ladies are joining the company in general functions due to the change in image of Royal Enfield motorcycles.
SKILLS:
The actual skills and competencies of the employees working for the company. people at the Royal Enfield possess wide range of skills and are working towards the development of the company
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TVS
- Low entry barriers - Narrow product lines imply that aggressive promotions can eat into market share -High threat of
Honda, Yamaha
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- Low buyer power, high brand loyalty - Product diversification will imply risk of brand dilution
STRENGTHS
WEAKNESSES
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
OPPURTUNITIES
THREATS
Growing premium segment Increasing dispensable income Environmental concerns Exports increasing Very strong demand
The Rs.1 Lakh nano car Cut throat competition Increasing number of players in the
finance
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STRENGTHS
WEAKNESSSES
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
OPPURTUNITIES
THREATS
finance
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PART-B
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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.
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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."
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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 users 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.
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.
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.
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 users psyche and develop a thorough understanding of what the user looks for while buying a bike. In order to get a perspective from nonBullet 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.
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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.
OVERVIEW OF CHAPTER SCHEME Chapter-1 Introduction- Its 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.
TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE
AGE
NO. OF RESPONDENTS
PERCENTAGE
30 19 14 12 75
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.
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GRAPH No.1
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON AGE
16%
18%
40%
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TABLE No.2
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER
GENDER
NO. OF RESPONDENTS
PERCENTAGE
69 6 75
92% 8% 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.
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GRAPH No.2
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS BASED ON GENDER
8%
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TABLE No.3
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS OCCUPATION NO.OF RESPONDENTS STUDENT GOVERNMENT SERVICE EX-SERVICEMEN PROFESSIONAL SELF-EMPLOYED TOTAL 3 21 13 75 4% 28% 18% 100% 33 5 44% 6% PERCENTAGE
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.
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GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS
No. of Respondents
No. of Respondents
Student 44%
Govt service 6%
Ex-servicemen 4%
Proffesional 28%
Self-employed 18%
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TABLE No.4
TABLE SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS INCOME GROUP NO. OF RESPONDENTS LESS THAN 1,20,000 1,20,001-3,60,000 3,60,001-7,20,000 ABOVE 7,20,000 TOTAL 10 14 12 75 14% 18% 16% 100% 39 52% PERCENTAGE
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.
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GRAPH No.4
GRAPH SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS
Sales
16%
18%
52%
14%
Above 7,20,000
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TABLE No.5
TABLE SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS PRESENTLY OWN MODEL NO. OF RESPONDENTS STANDARD 350 THUNDER BIRD ELECTRA CLASSIC 350 CLASSIC 500 OTHERS TOTAL 15 22 17 3 75 20% 30% 21% 4% 100% 11 7 14% 10% PERCENTAGE
Analysis From the above it is clear that 14% of the respondents own standard 300, 10% of them own Thunder Bird, 20% of them own Bullet Electra, 30% of them own classic 350, 21% of them own classic 500 and 4% of them own others. 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.
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GRAPH No.5
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS PRESENTLY OWN
30 25 20 15 No of respondents 10 5 0
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TABLE No.6
TABLE SHOWING- THE NO OF RESPONDENTS CONSIDERING OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD BIKE
YES/NO
NO. OF RESPONDENTS
PERCENTAGE
YES NO TOTAL
27 48 75
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.
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GRAPH No.6
GRAPH SHOWING- THE NO OF RESPONDENTS CONSIDERING OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD BIKE
64% 70% 60% 50% 40% 30% 20% 10% 0% YES NO 36%
No. of Respondents
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TABLE No.7
TABLE SHOWING- THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD BIKE MEDIA NO. OF RESPONDENTS NEWSPAPERS MAGAZINES FRIENDS ROADSHOW TV ADDS WEBSITE/BLOGS SHOWROOM TOTAL 6 24 11 7 5 15 7 75 8% 32% 14% 10% 6% 20% 10% 100% PERCENTAGE
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. Its clear that Royal Enfield should concentrate on its advertising campaign to reach the customers.
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GRAPH No.7
GRAPH SHOWING- THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD BIKE
friends roadsho showroo tv adds website and w m relations 14% 10% 6% 20% 10%
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TABLE No.8
TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASE OF BIKE
MILEAGE
NO. OF RESPONDENTS
PERCENTAGE
5 16 26 18 10 75
Analysis
From the above table it is clear that 56% of respondents gain mileage of 3545km/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.
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GRAPH No.8
GRAPH SHOWING-THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASE OF BIKE
30
25
20
15
10
0 No. of Respondents
45km/lt 5
40-45 16
35-40 26
30-35 18
Below 30 10
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TABLE NO.9
TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND PICK UP RATING NO. OF RESPONDENTS POOR AVERAGE GOOD EXCELLENT TOTAL 4 8 20 43 75 6% 10% 26% 58% 100% PERCENTAGE
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.
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GRAPH No.9
GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND PICK UP
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TABLE No.10
TABLE SHOWING - THE PLACE OF SERVICE OF RESPONDENTS BIKE PLACE OF SERVICE SHOWROOM WELL KNOWN BULLET MECHANIC NEARBY GARAGE SELF SERVICE TOTAL 8 75 11% 100% 4 6% NO. OF RESPONDENTS 34 29 45% 38% PERCENTAGE
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.
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GRAPH No.10
GRAPH SHOWING- THE PLACE OF SERVICE OF RESPONDENTS BIKE
Showroom
Nearby garage
Self service
11%
6%
45%
38%
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TABLE No.11
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 NO TOTAL
55 20 75
NO. OF RESPONDENTS 49 26 75
PERCENTAGE
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.
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GRAPH No.11
GRAPH SHOWING- THE RESPONDENTS OPINION AND LEVEL OF SATISFACTION ABOUT THE COMPANY TAKING ACTION TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS
55 60 40 20 0 Yes No
20
No. of Respondents
Point of satisfaction
No 34%
Yes 66%
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TABLE No.12
TABLE SHOWING- THE RESPONDENTS OPINION ABOUT PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE ROYAL ENFIELD CLUB
YES/NO
NO. OF RESPONDENTS
PERCENTAGE
YES NO TOTAL
62 13 75
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.
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GRAPH NO.12
GRAPH SHOWING- RESPONDENTS OPINION ABOUT PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE ROYAL ENFIELD CLUB
18%
82%
Yes No
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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 3,60,000-7,20,000 can easily afford this Bike.
5. Customers are not attracted to only one particular model due to the variants
available and because the Thunderbird 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 didn't
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 nonBullet riders. Its 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 doesnt breakdown at all, it is not
problematic and not involved into repair always.
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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
doesnt have any problems or issues with their bikes 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.
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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
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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 EMIs. 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.
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 behaviour 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.
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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
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ANNEXURE
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QUESTIONNAIRE
Dear Customer, I request you to kindly spare some of your time and fill the questionnaire below. So that we can improve satisfaction level of our customers Thank you.
RESPONDENT INFORMATION
Name:
Professional
Self employed
other
4. Annual Income:
Less than 1, 20,000 3, 60,001-7, 20,000 1, 20,001-3, 60,000 Above 7, 20,000
6. Did you consider any other motorcycle while buying the Royal Enfield bike?
Yes No
Bike
7. Please specify your source of awareness of Royal Enfield while buying your
bike? Newspapers Road shows Showroom Magazines TV Adds Others Friends Website/blogs
Yes
No
9.
How about the availability of spare parts? Readily available Dont have good spares supply dont get them readily Major headache
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11. Do you agree that company takes action towards the complaints lodged by the
customers? YES NO
12. Would you like to participate in the Rider Mania organized by the Royal
Enfield club?
YES
NO
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13. Please indicate your degree of satisfaction level with the features of your 'Royal Enfield Bullet'? Excellent 1 Good 2 Average 3 Below Average 4 Not satisfied 5
14.Please indicate your perception level with respect to company image of 'Royal Enfield Ltd'? Excellent Good Average Below Average 1 2 3 4 5 Not satisfied
15.Any suggestions
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Books Referred
Marketing Management, 13th edition Survey Research Methods - Philip Kotler - Charles Babbie
Magazines Referred
The Bullet-In, The Magazine For All Royal Enfield Bullet Enthusiasts. Royal Enfield Magazine, The BEAT.
Websites Referred
www.royalenfield.com www.wikipedia.org www.enfieldmotorcycles.com
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