GROUP B6

ROYAL ENFIELD INTERCEPTOR 650

SUBMITTED TO:
DR. AMRITA SENGUPTA

SUBMITTED BY:
ANKIT RAKHECHA
ASHUTOSH PANDEY
KANKANA BRAHMA
SOUVIK GHATAK
VIPUL GUTA
Strategy for launching ROYAL
ENFIELD INTERCEPTOR 650 in
Indian Market

Introduction:
Hypothesis testing is an act in statistics whereby an analyst tests an assumption
regarding a population parameter. The methodology employed by the analyst
depends on the nature of the data used and the reason for the analysis.
Hypothesis testing is used to infer the result of a hypothesis performed on
sample data from a larger population.
There are two hypothesis that are tested, null & alternate.

Problem Definition:
Though there is a large number of 650cc motorbikes in 2 wheelers market,
whether Royal Enfield interceptor 650 will be a viable option to go for the
mass.

Objective:
To define the appropriate strategy of launching based on cost effectiveness
and performance.
Hypothesis:
Statement:
Royal Enfield is willing to launch its new 650cc motorbike
Royal Enfield Interceptor 650 and for that it wants to find out the
details of any potential competitors. According to the R&D team,
considering top competitors, the average mileage of 650cc
motorbikes is 17.4 Kmpl and the average price amounts to at most
5.48 Lakhs. Now it wants to access whether the claim of the R&D
team is true.

Desired Null and Alternate Hypothesis:

H0 <= 5.48 --------- Null Hypothesis

H1 > 5.48 --------- Alternate Hypothesis

B) Considering Mileage of various motorbikes:

H0 <= 17.4 --------- Null Hypothesis

H1 > 17.4 --------- Alternate Hypothesis

C) Considering Weight of various motorbikes:

H0 >= 229 --------- Null Hypothesis

H1 < 229 --------- Alternate Hypothesis

D) Considering Ground Clearance of various motorbikes:

H1 > 135 --------- Alternate Hypothesis

 Pricing
 Mileage
 Weight
 Ground Clearance

We found below n=9 motorbikes in that range and obtained the below
observations:
 Particulars Pricing Mileage Weight Ground
(In (In (In Clearance
Lakhs) Kmpl) KG) (In mm)
Hyosung 5.62 16 240 140
Aquila
PRO
Hyosung 5.92 17 215 165
GT650R
Kawasaki 6.69 16.5 216 170
Versys 60
Kawasaki 4.99 21 186 130
Z650
Kawasaki 5.9 19 193 130
Ninja 650
Benelli 600 6.61 19 243 150
GT
Benelli 6.1 19.5 231 150
TNT
Honda 7.38 20 216 133
CBR650F
Triumph 11.5 18 189 140
Daytona R

Method Used:
We used t-test as our statistical hypothesis test. T test is used to compare two
different set of values. It is generally performed on a small set of data. T test is
generally applied to normal distribution which has a small set of values. This
test compares the mean of two samples. T test uses means and standard
deviations of two samples to make a comparison.
SPSS is the software used for doing t-test. It is a software package used for
interactive, or batched, statistical analysis. The manufacturer of the software is
IBM.
First using mean and standard deviation we find the z-score for each sample.
The formula for t-test is:

𝑥̅ − 𝜇
𝑡=
𝑠
√
𝑛

Where:
𝑥̅ = Sample Mean
µ = Population Mean
s = Sample standard deviation
n = no. of samples

After this, taking degree of significance as 95%, we find the z-score for the
same and compare the data for accepting or rejecting null hypothesis.
Result & Analysis:

Pricing Mileage Weight Ground

Referring the t-distribution table for level of significance 95%

Z score = 1.95996 for Right tailed (>)

Z score = -1.95996 for left tailed (<)

Comparing the t scores of each variables with that of t-distribution table z score we can infer
following:

 Pricing:
Upon comparison of Z score,
1.95996 < 1.987579
The Null Hypothesis will get rejected as it falls in rejection region (right tailed) and alternate
hypothesis will be accepted.
  Mileage
Upon comparison of Z score,
1.95996 < 2.037209
The Null Hypothesis will get rejected as it falls in rejection region (right tailed) and alternate
hypothesis will be accepted.

 Ground Clearance
Upon comparison of Z score,
1.95996 < 2.037209
The Null Hypothesis will get rejected as it falls in rejection region (right tailed) and alternate
hypothesis will be accepted.

 Weight
Upon comparison of Z score,
-1.95996 > -2.05598
The Null Hypothesis will get rejected as it falls in rejection region (left tailed) and alternate
hypothesis will be accepted

Left Tailed Graph with Shaded area as Rejection Region

Conclusion:
Royal Enfield willing to launch its new bike – Royal Enfield Interceptor 650 should consider following
things:

 The mean price of the vehicle in Interceptor’s Segment is more than 5.48 Lakhs.
 The mean mileage of the vehicles is more than 17.4 kmpl.
 The mean weight of the vehicles is less than 229 kg.
 The mean ground clearance is more than 135 mm.

Hence if Royal Enfield wants this vehicle to be huge success, above things should be taken into
consideration.