“A person who buys goods or services from a shop or business.” is known as a customer.

And customer perception is “A marketing concept that encompasses a customer's impression,

awareness and or consciousness about a company or its offerings. Customer perception is
typically affected by advertising, reviews, public relations, social media, personal experiences
and other channels.” In simple words, Customer Perception means the view point of the
customers towards a particular product. It is one among the factors which influence the
buying behaviour of the customers. This is study all about the customer perception towards
Royal Enfield. Royal Enfield is an Indian motorcycle manufacturing company based in
Chennai, India. Originally, a British motorcycle company, Royal Enfield and indigenous
Madras Motors, it is now a subsidiary of Eicher Motors Limited, an Indian automaker. The
company makes the Royal Enfield Bullet, and other single-cylinder motorcycles. Established
in 1893, Royal Enfield is among the oldest motorcycle companies. Perception of the
customers towards Royal Enfield and its products can be ascertained through this study.

The automotive industry in India is one of the largest automotive markets in the world. It was
previously one of the fastest growing markets globally, but it is currently experiencing flat or
negative growth rates. In 2009, India emerged as Asia's fourth largest exporter of passenger
cars, behind Japan, South Korea, and Thailand, overtaking Thailand to become third in 2010.
As of 2010, India was home to 40 million passenger vehicles. More than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making India the
second fastest growing automobile market in the world (after China). India's passenger car
and commercial vehicle manufacturing industry recently overtook Brazil to become the sixth
largest in the world, with an annual production of more than 3.9 million units in 2011.From
2011 to 2012, the industry grew 16-18%, selling around three million units. According to the
Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to
4 million by 2015, not 5 million as previously projected.

The changes in the Indian two-wheeler market have been dramatic. Market leaders of the
previous decade have been hit by dropping sales figures, while Japanese firms have built a
strong base across India. Royal Enfield, which specialises in leisure products, has seen its
sales grow by 44 per cent. In 2011-12, the brand’s sales touched 78,500 units. The waiting
period for the Classic 350 from Royal Enfield, ranges from eight months to one year. In
October 2012, the Chennai based company launched the all new Thunderbird series, while
the 350cc variant is the base version and the technologically advanced 500cc. The company
has 237 countrywide showrooms. It expects to sell over 1000 units every month. The
company has three main models, Thunderbird, Classic, Continental GT and Bullet, which
have a further 11 variants based on engine size, features and technology. By the end of 2013,
the company aims to produce 12,500 units per month from the new plant. It can double or
triple production to meet export demand. The company exports to 30 to 40 countries,
including the US.

1.1 STATEMENT OF PROBLEM

Royal Enfield is a brand which has been occupying the top position in cruiser bike segment in
India. They are almost a monopoly in this segment. Royal Enfield products were
manufactured for and used by Armed forces and this evoked special admiration among
people towards these bikes. Later on Royal Enfield began production of bikes for civilian
customers. This move created a buzz and lots of units were sold out. At the early 2000s sales
of Royal Enfield slumped slightly. In recent years there has been a sudden surge in sales
because of the change in customer perception towards the products. The main factor for this
increase is the increase in interest of youngsters towards Royal Enfield. They consider this
product as a status symbol and as a symbol of machoism, pride and confidence. This study
focuses on these factors that influence the customer perception towards Royal Enfield.

1.2 SCOPE OF THE STUDY

When it comes to the selection of bikes, a number of choices are available to the Indian
customers. So the question arises as to why the people choose Royal Enfield and what are the
features they look for while making the purchase. The results of the study would give
information about the preferences of the consumers and also their expectations from Royal
Enfield bikes and would help the company to understand the potential of the market and
target the right customers. The study is confined to Ernakulam City.
1.3 OBJECTIVES

Primary objectives

 To find the perception of customers towards Royal Enfield brand.

 To know the recent spurt in growth of sales.

Secondary objectives

 To find out the motivational factors to purchase a Royal Enfield product.

 To understand the customer psychology on choosing the product or service, so
that easily the product can be positioned.

 To know the customer perception towards Royal Enfield and other competitors
 To access the real opinion and mind set of customer and aid to meet out their
expectation in future in turn that will increase the volume of sales.

 To find the most leading model of Royal Enfield.

 To ascertain the reasons for increase in sales of the leading model of Royal
Enfield.
 To understand the efficiency of dealer service provided to the customer, so that it
can create route for further improvement.

1.4 METHODOLOGY

The study is mainly done with the help of primary data and secondary data.

 Primary data collection

It is collected from the respondents through survey done online and offline with the
help of structured questionnaire given to 50 Royal Enfield customers within an age
group of 18 – 50 years. Another source was the main dealers of Royal Enfield in
Ernakulam city.

 Secondary data collection

It is collected from Internet and official website of the Royal Enfield.
1.5 LIMITATIONS

Each and every study will have its own limitations. Some among such limitations of this
study are :

 Limited sample size.

As the data is collected from a few, it may not prove the view of entire population.
 The survey was time consuming.
 Since the respondents have to fill the form online, they may not co-operate properly.
 Possible sampling error.
 Geographical restrictions
The survey was limited to Ernakulam city only.
2.1 DEFINITIONS

Customer

“Customer is a person who purchase and pays for a product or service either for resale or for
use in production or for use of somebody elses”

Customer perception

“A marketing concept that encompasses a customer's impression, awareness and or

consciousness about a company or its offerings. Customer perception is typically affected
by advertising, reviews, public relations, social media, personal experiences and
other channels.”

2.2 BUYING MOTIVES

A motive is a drive or an urge for which an individual seeks satisfaction. It is the buying
motives which induce a consumer to buy a particular product. A lady may buy a saree for
physical protection or for wearing something to look beautiful or as a status symbol. Thus
buying motive is a strong feeling, instinct, desire or emotion that makes the buyer to buy a
product. According to D J DUNCAN, “Buying motives are those influences or considerations
which provide the impulse to buy, induce action or determine choice in the purchase of goods
and services.” In short, a buying motive is the reason why a person buys a particular product.
It is driving force behind buying behaviour.

TYPES OF BUYING MOTIVES

Buying motives are of four types.

 Product and Patronage buying motives.

 Emotional and Rational buying motives.
 Inherent and Learned buying motives.
 Psychological and Social buying motives.
PRODUCT BUYING MOTIVES
Product buying motives refer to those influences and reasons, which prompt (i.e. induce) a
buyer to choose a particular product in preference to other products. They include the
physical attraction of the product (i.e. the design, shape, dimension, size, colour, package,
performance, price etc. of the product) or the psychological attraction of the product (i.e. the
enhancement of the social prestige or status of the purchaser through its possession), desire to
remove or reduce the danger or damage to life or body of the possessor, etc. In short, they
refer to all those characteristics of a product, which induce a buyer to buy it in preference to
other products.
PATRONAGE MOTIVES

These are those motives which determine where or from whom products are purchased.
These are the considerations which induce a buyer to buy goods from specific shops.
Following are the key patronage motives:

 Price and Quality

 Location
 Variety
 Services
 Personality of the Owner or Salesmen.

EMOTIONAL MOTIVES

When a consumer decides to buy without much logical thinking, his decision is said to be
emotional. Emotional buying motives are the motives which are affected by the feeling of
heart. The emotional motives are of the following types :

 Sex or Romance Motive

 Love of Others (Affection Motives)
 Social Acceptance Motive
 Vanity Motive
 Recreation and Relaxation Motive
 Curiosity Motive
 Comfort and Convenience Motive
RATIONAL MOTIVES
When a buyer decides to buy after careful consideration or logical thinking, his decision is
said to be rational. Thus rational buying motives are motives where a consumer takes the
decision of purchasing a product by his head and mind. In making rational purchases, the
consumer considers price, durability, dependability, efficiency, convenience etc. Rational
motives are of the following types:

 Monetary Gain
 Efficiency in Operation and Use
 Dependability Motive

INHERENT AND LEARNED BUYING MOTIVES

Inherent buying motives are those which arise from the basic needs of the consumers such as
hunger, sex, comfort, and safety. In order to satisfy these motives, a consumer has to make
his best efforts. If these motives remain unsatisfied, he feels mental tension.
Learned motives are those which a customer acquires or learns from the environment in
which he lives or from education. These motives are social status, social acceptance,
economic, social and political achievement, fear and security. These motives are much
affected by education and social environment of the customers.
Both types of motives play a very important role in consumer decision process. These
motives provide direction to a company’s marketing activities. Out of these two motives,
inherent motives are stronger, more useful and urgent. In satisfying the learned motives,
customers do not care for the price of the product.

PSYCHOLOGICAL AND SOCIAL BUYING MOTIVES

Psychological motives are those motives. Which are concerned with the social groups. It
assumes that buying behaviour of an individual is influenced by his social environment and
he is always anxious to conform to the standard of his environment. Social motives are those
motives which are affected by the society in which he lives. Man is a social being and he
cannot remain unaffected by the society. He cannot purchase anything without the sanction
and recognition of the society.
2.3 CONSUMER BUYING PROCESS (CONSUMER DECISION
MAKING PROCESS)

Buying is a mental process. A decision to buy a product is taken after passing through
different stages. According to Robinson, Faris and Wind ( in 1967) the buying decision
process involve the following five stages.

1. RECOGNITION OF AN UNSATISFIED NEED:

All buying decisions start with need recognition. When a need is not satisfied it creates
tension. This tension drives people to satisfy that need. Then need becomes motive. Thus
motives arise from needs and wants. The force that converts needs into motives is called
motivation.

2. IDENTIFICATION OF ALTERNATIVES:
After recognizing a need or want consumers search for information about the various
alternatives available to satisfy it. If the need is usual, such as hunger, thirst etc. the consumer
may rely on past experience of what satisfies this need. If needs are unusual or unfamiliar,
consumer may seek additional information from friends, family, media, sales people etc. it is
only through this information search that we can identify the means of satisfying our need.

3. EVALUATION OF ALTERNATIVES:
By collecting information during the second stage, an individual comes to know about the
brands and their features. Now he compares the alternative products or brands in terms of
their attributes such as price, quality, durability etc. during the evaluation stage he may
consider the opinion of others such as wife, relatives and friends. Then he selects the brand
that will give him the maximum utility (or that he thinks the best)
4. PURCHASE DECISION:
Finally the consumer arrives at a purchase decision. Purchase decision can be one of the
three, namely no buying, buying later and buying now. If he has decided to buy now, he will
decide the shop (dealer) to buy it from, when to buy it, how much money to spend etc. After
deciding these, he will go to the shop chosen and buy the product of the brand chosen.
 5. POST PURCHASE BEHAVIOUR:
It refers to the behaviour of a consumer after purchasing a product. After the consumer has
actually purchased the product/brand he will be satisfied or dissatisfied with it. If he is
satisfied with the product he would regularly buy the brand and develop a loyalty. He
recommends the brand to his friends and relatives. The negative feeling which arises after
purchase causing inner tension is known as Cognitive Dissonance (or Post Purchase
Dissonance). The post purchase dissonance is also called Buyer’s Remorse.

2.4 FACTORS INFLUENCING CONSUMER BEHAVIOUR /

BUYING DECISIONS (DETERMINANTS OF CONSUMER
BEHAVIOUR)

All factors which determine the buying or consumer behaviour are broadly classified into six.
Psychological factors, Social factors, Cultural factors, Personal factors, Economic factors and
Environmental factors.

 PSYCHOLOGICAL FACTORS
The following are the important psychological factors:

1) Consumer Needs and Motivation:

All buying decisions start with need recognition. People always seek to satisfy their needs.
When need is not satisfied it drives people to satisfy that need. Then the need becomes a
motive. Thus motive arises from needs and wants. The force that converts needs into motives
is called motivation.

2) Perception:

It is the process of selecting, organizing and interpreting information in order to give meaning
to the world or environment we live in. the way the consumers display selective attention,
distortion or retention motivates marketers to design the product, package, promotional
themes etc. The marketers should understand the consumer perception and convert perception
into a buying response.
3) Learning:

Learning is the process of acquiring knowledge. Generally, learning results in four ways-
Listening, Reading, Observing and experiencing. The importance of learning theory for
marketers is that they can create demand for a product by associating it with strong drives,
using motivating cues and providing positive reinforcement.

4) Belief and Attitude:

A belief is a descriptive thought that a person holds about something. Such thoughts are
based on learning, opinion or faith. For example, a consumer believes that Maruti cars are
less costly and fuel efficient. Attitude means a person’s feelings towards a particular object or
situation.

 SOCIAL FACTORS
The major social factors are as follows

1) Reference Group:

Consumer behaviour is influenced by various groups within society known as reference

groups. We have several reference groups with whom an individual associate such as friends,
relatives, classmates, club memberships etc. In each groups there is an opinion leader whose
style is adopted by others. Marketers often identify such opinion leaders and develop
advertisement featuring them as endorsers.

2) Role and Status:

A person takes up many roles in different situations in his /her life. He can be son, father,
husband, employee etc. Each role has a status. A person’s role and status influence his
general as well as buying behaviour.

3) Family:

Family is one of the important factors influencing buying behaviour.

  CULTURAL FACTORS
Culture determines and regulates our general behaviour. The major cultural factors are as
follows:

1) Culture:

Culture simply refers to values and beliefs in which one is born and brought up. It is a set of
Ideas, Customs, Values, Art and Belief that are produced or shaped by a society and passed
on from generation to generation. Culture influence what we eat and wear, how we relax and
where we live etc.

2) Sub-Culture:

It is based on religion, language, geographic region, nationality, age etc. It is a segment

within a large culture that shares a set of beliefs, values or activities that differ in certain
respects from those of the main or overall culture. The food habits are different in different
parts of India.

3) Social Class:

A social class is a group of people with similar values, interest and behaviour within a
society. Consumers buying behaviour is determined by the social class to which they belong
rather than by their income alone. The social class is based on income, education, occupation,
family history, wealth, lifestyle, area of residence etc.

 PERSONAL FACTORS
Personal factors are unique to a particular person. These factors include demographic factors
and are as follows.

1) Age:

Need and wants are determined by age. So buying changes with age, Taste for food, clothing
and recreation etc. changes with age.

2) Stages in the Life Cycle:

People buy different goods during different life cycle stages. Life cycle of an individual
refers to the different phases of his or her life.
3) Occupation and Economic Status:

Occupation influences product choice, brands beliefs etc. It determines income, buying power
and status.

4) Life Style:

It indicates how people live, how they spend their time, how and what they choose and
where they shop. It is the way people eat, drink, spend leisure time, work and so on.

5) Personality:

Personality refers to the unique psychological characteristics of an individual. Personality of

consumers influences brand preference and choice of products.

6) Self-Image:

Self image implies what one thinks of himself/herself .It is the way one sees himself/herself
or wishes to see himself/herself or wants to be seen by others. Self-concept is an important
factor to marketers in planning advertising campaign.

 ECONOMIC FACTORS
The various economic factors which determine consumer behaviour are as follows:

1) Personal Income:

Gross income of a person is composed of disposable and discretionary income. When

disposable income rises, the expenditure on various items will increase and vice versa.

2) Family Income:

It is the aggregate income of all members of a family. The family income remaining after the
expenditure on the basic needs of the family is made available for buying goods, durables and
luxuries

3) Income Expectations:

If a person expects any increase in his income he will buy durables on hire purchase etc, if
his future income is likely to decline he will restrict his expenditure to bare necessities.
4) Savings:

When a person decides to save more, he will spend less on comfort and luxuries.

5) Liquidity Position:

If an individual has more liquid assets, he goes in for buying comfort and luxuries.

6) Consumer Credit:

If Consumer Credit is available on liberal terms, expenditure on comfort and luxuries will
increase.

 ENVIRONMENTAL FACTORS

The various environmental factors which determine consumer behaviour are as follows:

1) Political Situation:

In state monopolies, consumers have to be satisfied with a limited range of products, but in
market oriented economy like that of USA, consumers have wider choice.

2) Legal Forces:

Consumers make purchases within the legal framework. All purchase dealings are carried on
within legal limits.

3) Technological Advancements:

Technological advancements bring wide range of changes in products/ services and makes
consumers go in for latest products.

4) Ethical Considerations:

Buying behaviour is influenced by the sense of social morality and ethical considerations.
 INDUSTRY PROFILE

3.1 AUTOMOBILE INDUSTRY

The Indian auto industry is one of the largest in the world with an annual production of 21.48
million vehicles in FY 2013-14.The automobile industry accounts for 22 per cent of the
country's manufacturing gross domestic product (GDP).An expanding middle class, a young
population, and an increasing interest of the companies in exploring the rural markets have
made the two wheelers segment (with 80 per cent market share) the leader of the Indian
automobile market. The overall passenger vehicle segment has 14 per cent market share.
India is also a substantial auto exporter, with solid export growth expectations for the near
future. Various initiatives by the Government of India and the major automobile players in
the Indian market are expected to make India a leader in the Two Wheeler and Four Wheeler
market in the world by 2020.

A. Market Size

Sales of commercial vehicles in India grew 5.3 per cent to 52,481 units in January 2015 from
a year ago, according to Society of Indian Automobile Manufacturers (SIAM).Sales of cars
also grew for a third month in a row to 169,300 units in January 2015, up 3.14 per cent from
the year-ago period. Car market leader Maruti Suzuki India witnessed 8.6 per cent higher
sales at approximately 118,551 units in February 2015, out of which 107,892 were sold in
domestic market and 10,659 units were exported. Hyundai Motor India Ltd (HMIL) reported
a 2.4 per cent growth in total sales at 47,612 units in February, compared with 46,505 units in
the same month last year. In the two-wheeler segment, Hero MotoCorp witnessed sales of
484,769 units in February 2015.TVS Motor Co posted 15 per cent higher sales at 204,565
units against 177,662 units. Bajaj Auto sold a total of 243,000 two and three-wheelers
segment.
B. Investments

To match production with demand, many auto makers have started to invest heavily in
various segments in the industry in the last few months. The industry has attracted foreign
direct investment (FDI) worth US$ 12,232.06 million during the period April 2000 to
February 2015, according to the data released by Department of Industrial Policy and
Promotion (DIPP).Some of the major investments and developments in the automobile sector
in India are as follows:

• DSK Hyosung has announced to set up a plant in Maharashtra and is planning to add 10-15
dealerships in the next financial year (FY 15-16) mostly in the tier-II cities and introduce
more models in the 250cc segment.

• Germany-based luxury car maker Bayerische Motoren Werke AG’s (BMW) local unit has
announced to procure components from seven India-based auto parts makers.

• Mahindra Two Wheelers Limited (MTWL) has acquired 51 per cent shares in France-based
Peugeot Motorcycles (PMTC).

• Suzuki Motor Corp is planning to sell the automobiles made in the Gujarat plant, in Africa.

• Tata Motors Ltd, India’s largest automobile maker, will sell trucks in Malaysia, Vietnam
and Australia to strengthen its presence in the Asia-Pacific region.

C. Future developments

India is probably the most competitive country in the world for the automotive industry. It
does not cover 100 per cent of technology or components required to make a car but it is
giving a good 97 per cent, highlighted MrVicent Cobee, Corporate Vice-President, Nissan
Motor’s Datsun. The vision of AMP 2006-2016 sees India, “to emerge as the destination of
choice in the world for design and manufacture of automobiles and auto components with
output reaching a level of US$ 145 billion; accounting for more than 10 per cent of the GDP
and providing additional employment to 25 million people by 2016.”The Japanese auto
maker Maruti Suzuki expects the Indian passenger car market to reach four million units by
2020, up from 1.8 million units in 2013-14.
3.1.1 TWO WHEELER INDUSTRY

Indian Two-Wheeler Industry is the largest in the world as far as the volume of production
and sales are concerned. India is the biggest two-wheeler market on this planet, registering an
overall growth rate of 9.5 percent between 2006 and 2014. The growth in Indian Automobile
Industry owed the most to a steep upsurge witnessed in the two-wheeler segment in 2014.
The volume growth recorded in the 2014-15 fiscal year stood at a commendable 14.8 percent
on a year-on-year basis. The 'Make in India' campaign of the Government of India is also
going to attract more foreign investment into Indian Two-Wheeler Industry creating further
growth opportunities in the coming years. Growth Factors of two wheeler industry in India
are

 Relatively Low Cost of Two-Wheelers in India.

 Steep Fall in Fuel (especially petrol) Prices.

 Reduced Excise Duty.

 High Interest Rates on Passenger Cars and LCVs.

Indian Two-Wheeler Market is noticing a continuous upsurge in demand and thus resulting in
growing production and sales volume. This owes a lot to the launching of new attractive
models at affordable prices, design innovations made from youths’ perspective and latest
technology utilised in manufacturing of vehicles. The sale of two-wheeler products has
increased substantially. The sales volumes in the two-wheeler sector shot up from 15 percent
to 24 percent between 2008-09 and 2013-14.The domestic motorcycle sales volume moved
up to 10 percent, whereas the scooter segment recorded a growth of 30.7 percent in sales
volume. In the past 2-3 years, around a dozen new scooter brands have been introduced in
India. But the motorcycle segment lags behind in this regard. This is due to the fact that the
recently launched gearless scooters cater to the needs of both men and women, while
motorbikes are a segment preferred by men only. The growth momentum is also propelled by
the fact that the two-wheeler manufacturers in India have understood the market’s needs and
have been able to deliver as expected. At the end of 2014, the global business involving two-
wheeler designing, manufacturing, engineering and selling was at an average of US$ 3.5
billion per manufacturer. Though, further growth in Indian Two-Wheeler Industry will
depend heavily on people’s personal disposable incomes that rely on India's economic growth
in days to come.
 COMPANY PROFILE

3.2 ROYAL ENFIELD COMPANY

Royal Enfield was the name under which the Enfield Cycle Company (founded 1893) made
motorcycles, bicycles, lawnmowers and stationary engines. The legacy of weapons
manufacture is reflected in the logo, a cannon, and their motto "Made like a Gun". Their first
motorcycle was built in 1901.

In 1955, Enfield Cycle Company partnered with Madras Motors in India in forming Enfield
of India, based in Chennai, and started assembling the 350 cc Royal Enfield Bullet
motorcycle in Madras. The first machines were assembled from components imported from
England. Starting in 1957, Enfield of India acquired the machines necessary to build
components in India, and by 1962 all components were made in India. The original Redditch,
Worcestershire based company dissolved in 1971, but Enfield of India continued, and bought
the rights to use the Royal Enfield name.

3.2.1. THE EARLY YEARS AND BETWEEN THE WARS

In 1909 Royal Enfield surprised the motorcycling world by introducing a small Motorcycle
with a 2 ¼ HP V twin Motosacoche engine of Swiss origin. In 1911 the next model was
powered by a 2 ¾ HP engine and boasted of the well known Enfield 2-speed gear. In 1912
came the JAP 6 HP 770 CC V twin with a sidecar combination. It was this motorcycle which
made Enfield a household name. 1914 saw the 3 HP motorcycles this time with Enfield’s
own engine which now had the standardised Enfield paint scheme of black enamelled parts
and green tank with gold trim.

At the time of the outbreak of WW I Royal Enfield supplied consignments of their 6 HP

sidecar Outfit motorcycles with Stretchers to the Crown. This same motorcycle also came
with a Vickers machine Gun sidecar attachment which could also be turned skywards and
used against low flying aircraft. Royal Enfield supplied large numbers of motorcycles to the
British War Department and also won a motorcycle contract for the Imperial Russian
Government.
As the factory developed in the 20’s the range of models also increased and in 1924 Royal
Enfield was offering four versions of the 2 ¼ HP two-stroke motorcycle, two new JAP
engined 350 cc motorcycles and two versions of the 8 HP Vickers engine sidecar
combinations. During the great depression of the 30’s Royal Enfield was also affected and
the demand for motorcycles waxed and waned but the bicycle manufacturing continued at the
same pace and the company trudged on. The Cycar, a fully enclosed motorcycle model
appeared in the early 30’s.

During World War II, like other manufacturers of that time Royal Enfield was also called
upon by the British authorities to develop and manufacture military motorcycles. The models
produced for the military were the WD/C 350 cc SV, WD/CO 350 cc OHV, WD/D 250 cc
SV, WD/G 350 cc OHV and WD/L 570 cc SV. One of the most well-known Enfields was the
Royal Enfield WD/RE, known as the Flying Flea, a lightweight 125 cc motorcycle designed
to be dropped by parachute with airborne troops.

After the war the factory continued manufacturing the models developed during the war and
the legendary J 2 model appeared which went on to be the ancestor of the legendary Bullet.
The same motorcycle which perhaps had the honour of the being the one with the longest
production run in the world.

3.2.2. THE INDIA CONNECTION

Royal Enfield motorcycles were being sold in India ever since 1949. In 1955, the Indian
government started looking for a suitable motorcycle for its police forces and the army for
patrolling duties on the country's border. The Bullet 350 was chosen as the most suitable bike
for the job. The Indian government ordered 800 of these 350 cc motorcycles, an enormous
order for that time. Thus In 1955, the Redditch Company partnered with Madras Motors in
India to form what was called 'Enfield India' to assemble these 350 cc Bullet motorcycle
under license in erstwhile madras (Now called Chennai). As per their agreement Madras
Motors owned the majority (over 50%) of shares in the company. In 1957 tooling equipment
was also sold to Enfield India so that they could manufacture components and start full-
fledged production. The Enfield Bullet dominated the Indian highways and with each passing
year its popularity kept rising.
3.2.3. WINDING UP IN UK

Royal Enfield UK continued manufacturing motorcycles and came out with some more
innovative and powerful machines notably the Royal Enfield Meteor, Constellation and
finally the Interceptor 700, before being sold to Norton-Triumph-Villiers (NVT) in 1968.
Production ceased in 1970 and the company was dissolved in 1971. Remaining tooling and
equipment of the Redditch works were auctioned off. Meanwhile the Bullet 350 continued to
be manufactured in India and by the 1980’s the motorcycles were even exported to Europe
out of India. Even after the motorcycle manufacturing closed down the precision engineering
division ran for some more time and even bicycles were produced until quite late.

3.2.4. THE TAKEOVER BY EICHER

In 1990, Enfield India entered into a strategic alliance with the Eicher Group, and later
merged with it in 1994. It was during this merger that the name Enfield India changed to
Royal Enfield. The Eicher Group is one of India's leading automotive groups with diversified
interests in the manufacture of Tractors, Commercial Vehicles, Automotive Gears, Exports,
Garments, Management Consultancy and Motorcycles. Since then, the Company has made
considerable investments in modernizing its manufacturing technology and systems. In 1996,
when the Government decided to impose stringent norms for emission Royal Enfield was the
first motorcycle manufacturer to comply, a tradition which has stuck on thus making
emission norms being one of the most important factors the company focuses on.

3.2.5. INFRASTRUCTURE AND TECHNOLOGY

To manufacture quality bikes that are well known worldwide for their reliability and
toughness state-of-the-art infrastructure is required, and that is just what Royal Enfield has
done at their Chennai manufacturing facility. An active in-house Research & Development
wing is constantly at work to meet changing customer preferences and the challenges of
Indian and International environment standards. When introducing a new product, this team
undertakes all related planning which includes a rigorous customer contact program, design,
concurrent engineering and testing processes. The Motorcycle Design team at Royal Enfield
is well equipped with high-end CAD/CAM workstations and the latest modeling software.
Top-notch designers work continuously to come up with innovative bikes designs to meet the
market’s expectations. Continuous rigorous testing of motorcycles and components is carried
out in the Product Development testing lab to come up with more improvements in enhancing
the customer experience.

3.2.6. MANUFACTURING

Royal Enfield's manufacturing operations go through a series of modernization and

improvement efforts, with a number of automated processes. The Company has put in place
modern manufacturing practices like Cellular layouts, Statistical process controls and
Flexible manufacturing systems. The Chennai manufacturing facility has received the ISO
9001 certification and for managing its operations in a clean and safe environment, it has
obtained the ISO 14001-quality certification and kaizens are implemented to ensure the
quality levels are kept at an ever rising pace.

Royal Enfield ensures that all the components used in the bikes are sourced from the best
vendors in the Indian automotive industry, who are geared to supply according to the
Company’s stringent quality standards. The company works closely with all of its suppliers,
giving them technical and managerial support while maintaining practices like Direct-On-
Line and Vendor Self-Certification.

3.2.7. MARKETING NETWORK

You can feel the pulse of your customers, only if you get close to them. This thought process
has driven Royal Enfield to set up has a wide network of 11 Brand Stores, 250 dealers in all
major cities and towns, and over 200 Authorised Service Canters. The Company also exports
motorcycles to 42 countries like the USA, Japan, UAE, Korea, Bahrain, UK, France,
Germany, Argentina and many other countries through 40 importers and over 300 dealers
across the globe.
3.2.8. ROYAL ENFIELD PRODUCTS

Royal Enfield had a wide range of offerings that all carry the same heritage and “classic” ness
while ensuring delivery of the best performance and technology to our loyal base of
customers across the world.

Bullet

 Bullet 350 UE
 Electra twin spark
Thunderbird

 Thunderbird 350
 Thunderbird 500
Classic

 Classic 350
 Classic 500
 Classic chrome
 Desert storm
Café racer

 Continental GT
Export

 Classic EFI
 Classic military EFI
 Electra EFI
 Electra deluxe EFI
With the finest and brightest of teams in the country, comprising of management
professionals and a skillful, committed workforce, the Company has a unique and open
culture, making Royal Enfield a vibrant and responsive company. To its customers in India
and elsewhere in the world, Royal Enfield means more than just motorcycles; it's a sense of
belonging to an exclusive community with unfading passion, emotion and interest. The
Company is all set to augment its leadership position, be it in the power and leisure bike
segment in India or the classic bike segment elsewhere in the world, by introducing
distinctively styled and higher-powered motorcycles, strengthening existing communities
around its products, expanding its network, and delivering a unique motorcycling experience.

As the only motorcycle manufactured in India synonymous with adventure and leisure riding,
Royal Enfield has more recently stayed away from regular mass media advertising and has
concentrated more on building its brand around the values that the brand stands for. Having a
Cult status the Royal Enfield motorcycle is known for its Versatility, Uniqueness and is built
to last. Perceived as a machine in a class of its own and synonymous with Leisure and
Adventure; riding and charting up the miles. Royal Enfield strongly promotes leisure
motorcycling as a lifestyle and encourages the Royal Enfield riders/owners to keep riding. In
this regard, the company organizes annual events and rides such as the Himalayan Odyssey,
The Tour of Rann of Kutch, The Tour of NH 17 (Mumbai to Goa), the Tour of Rajasthan
and the Southern Odyssey. It also organizes the Annual festival of biking, Rider Mania in
Goa which attracts Royal Enfield riders from all over.
TABLE 4.1
Age level of the respondents
Sl. No Age No of respondents Percentage
1 18 - 25 41 82
2 26 - 35 4 8
3 36 - 45 3 6
4 45 & above 2 4
TOTAL 50 100

DIAGRAM 4.1
Age level of the respondents
90%
82%
80%

70%

60%

50%

40%
% OF RESPONDENTS
30%

20%
8% 6%
10% 4%
0%
18 - 25 26 - 35 36 - 45 Above 45

INTERPRETATION

Out of total 50 respondents 82% belong to the age group of 18 – 25. 8% of the respondents
belong to 26- 35 age group. 6% belongs to 36 – 45 age group and balance respondents lies
between the age group above 45.
TABLE 4.2
Gender of respondents
Sl. No Sex No of respondents Percentage
1 Male 49 98
2 Female 1 2
TOTAL 50 100

DIAGRAM 4.2
Gender of respondents
120%

98%
100%

80%

60%
% OF RESPONDENTS

40%

20%

2%
0%
MALE FEMALE

INTERPRETATION

Out of 50 respondents 98% are male respondents and only 2% is female.

TABLE 4.3
Educational qualification of the respondents
Sl.no Discipline No of respondents Percentage
1 High School 6 12
2 Graduates 25 50
3 Post Graduates 10 20
4 Others 9 18
TOTAL 50 100

DIAGRAM 4.3
Educational qualification of the respondents
60%

50%
50%

40%

30%

20%
20% 18%

12%
10%

0%
High School Graduates Post Graduates Others

INTERPRETATION

Among the total 50 respondents 12% of them are High school passed, 50% of them are
graduates, 20% post graduates, and remaining people are of other qualifications.
TABLE 4.4
Monthly income level of the respondents.
Sl.no Income level No of respondents Percentage
1 Under 15000 4 13.8
2 15001 – 20000 8 27.58
3 20001 – 25000 5 17.24
4 Above 20000 12 41.38
Total 29 100

DIAGRAM 4.4
Monthly income level of the respondents.
45.00%
41.38%
40.00%

35.00%

30.00% 27.58%

25.00%

20.00% 17.24%

15.00% 13.80%

10.00%

5.00%

0.00%
Under 15000 15001 – 20000 20001 – 25000 Above 20000

INTERPRETATION

Out of the total 50 respondents 41.38% falls in the income group above 20000, 17.24% falls
in the group of 20001 - 25000, 27.58% falls in the 15001 – 20000 and the remaining 13.8%
respondents in group under 15000.
TABLE 4.5

Rationale behind choosing the Royal Enfield brand

Sl.No Option No of respondents Percentage

1 Awareness 7 14
2 Experience 5 10
3 Recommendations 5 10
4 Brand image 12 24
5 Design 10 20
6 Mileage 0 0
7 Performance 10 20
8 Maintenance Cost 0 0
9 Others 1 2
TOTAL 50 100

DIAGRAM 4.5

Rationale behind choosing the Royal Enfield brand

30%
24%
25%
20% 20%
20%
14%
15%
10% 10%
10%

5% 2%
0% 0%
0%

INTERPRETATION

From the 50 respondents 14% of the respondents have choosen the brand Royal Enfield based
on their awareness, 10% based on their experience, 10% on the basis of recommendations,
24% based on the brand image, 20% on the basis of Design, 20% based on performance. no
one have the brand on the basis of mileage and maintenance cost, 2% based on other factors.
TABLE 4.6

Model used by the respondents.

Sl.no Model name No of respondents Percentage

1 Standard 350 18 36
2 Standard 500 2 4
3 Classic 350 12 24
4 Classic 500 4 8
5 Continental GT 3 6
6 Thunderbird 5 10
7 Electra 6 12
TOTAL 50 100

DIAGRAM 4.6

Model used by the respondents.

MODEL USED
40% 36%
35%
30%
24%
25%
20%
15% 12%
10% % of Respondents
10% 8%
6%
4%
5%
0%

INTERPRETATION

Among the 50 respondents, 36% of them uses standard 350, only 4 % of them uses standard
500, 24% uses Classic 350, classic 500 is used by 8%, continental GT is used by 6%. 10%
of them uses thunderbird, and 12% of them uses Electra.
TABLE 4.7

Year of purchase of the vehicle by the respondent

Sl.no Year of purchase No of respondents Percentage

1 1995 - 2000 4 8
2 2001 - 2005 2 4
3 2006 - 2010 10 20
4 2011 - 2015 32 64
5 2016 onwards 2 4
TOTAL 50 100

DIAGRAM 4.7

Year of purchase of the vehicle by the respondent

YEAR OF PURCHASE
70% 64%
60%

50%

40%

30%
20% % of Respondents
20%
8%
10% 4% 4%
0%
1995 - 2000 2001 - 2005 2006 - 2010 2011 - 2015 2016 onwards

INTERPRETATION

Out of the total 50 respondents 8% of the bikes were bought between 1995 - 2000, 4% of
them in 2001 – 2005, 20% of them in 2006 – 2010, 64% of them in 2011 – 2015 and 4 % of
them in the 2016 onwards.
TABLE 4.8

Distance of travel per day

Sl.No Distance (kms/day) No of respondents percentage

1 Less than 10 kms 2 4
2 10 kms – 25 kms 34 68
3 26 kms – 50 kms 12 24
4 Above 50 kms 2 4
TOTAL 50 100

DIAGRAM 4.8

Distance of travel per day.

DAILY DISTANCE
80%
68%
70%
60%
50%
40%
30% 24% % of Respondents
20%
10% 4% 4%
0%
Less than 10 kms 10 kms – 25 kms 26 kms – 50 kms Above 50 kms

INTERPRETATION

Among the total 50 respondents, 4 % travels less than 10 km per day, 68% travels 10 kms –
25 kms per day, 24% travels 26 kms – 50 kms a day, 4% travels Above 50 kms a day.
TABLE 4.9

Influencing factors while purchasing particular model

Sl.no Factors No of respondents Percentage

1 Brand and Price 10 20
2 Safety and comfort 15 30
3 Design and performance 21 42
4 Mileage and Maintenance 3 6
5 Others 1 2
TOTAL 50 100

DIAGRAM 4.9

Influencing factors while purchasing particular model

45% 42%
40%

35%
30%
30%

25%
20%
20%

15%

10%
6%
5% 2%
0%
Brand and Price Safety and Design and Mileage and Others
comfort performance Maintenance

INTERPRETATION

Among the 50 respondents 20% makes purchase due the influence of brand and the price,
30% by due to safety and comfort, 42% due to design and performance, 6% due to mileage
and the Maintenance, and remaining 2% due to other factors
TABLE 4.10

Person influenced to prefer particular model.

Sl.no Factors No of respondents Percentage

1 Dealer 0 0
2 Family member 13 26
3 Friends and Relatives 32 64
4 Others 5 10
Total 50 100

DIAGRAM 4.10

Person influenced to prefer particular model

70.00%
64.00%

60.00%

50.00%

40.00%

30.00% 26.00%

20.00%

10.00%
10.00%

0.00%
0.00%
Dealer Family member Friends and Relatives Others

INTERPRETATION

Among the 50 respondents 26% is influenced by the family members, 64% by the friends and
relatives and 10% by other persons for making purchase of particular model.
TABLE 4.11

Influence of advertisement of Royal Enfield while making purchase

Sl.no Option No of respondents Percentage

1 Yes 35 70
2 No 15 30
Total 50 100

DIAGRAM 4.11

Influence of advertisement of Royal Enfield.

80%
70%
70%

60%

50%

40%
30%
30%

20%

10%

0%
Yes No

INTERPRETATION

Among the 50 respondents 70% of them have seen and influenced by the producers ad and
the rest have not even seen.
TABLE 4.12

Price worthiness of the brand

Sl.no Opinion No of respondents Percentage

1 Yes 43 86
2 No 7 14
Total 50 100

DIAGRAM 4.12

Price worthiness of the brand

100%

90% 86%

80%

70%

60%

50%

40%

30%

20% 14%
10%

0%
Yes No

INTERPRETATION

Among the 50 respondents 86% of them have said yes it is price worthy and the rest have not
agreed with it
TABLE 4.13

Do you think Royal Enfield bikes are serving better than other brand of bikes ?

Sl. YES NO
No opinion No of % of No of % of
respdt respdt respdt respdt
1 Fuel efficiency - - 3 6
2 Design 10 20 - -
3 Comfort 12 24 - -
4 resale value 8 16 - -
5 After sales service - - 5 10
6 Performance 7 14 - -
7 Maintenance - - 5 10
TOTAL 37 74 13 26

DIAGRAM 4.13

Do you think Royal Enfield bikes are serving better than other brand of bikes ?
30%

25% 24%
FUEL EFFIECIENCY
20% DESIGN
20%
16% COMFORT
15% 14% RESALE VALUE

10% 10% AFTER SALES SERVICE

10% PERFORMANCE
6%
MAINTENANCE
5%
0% 0% 0% 0% 0% 0% 0%
0%
YES NO

INTERPRETATION

Among the 50 respondents 74% agreed that Royal Enfield bikes are serving better than other
brand of bikes. 20% because of Design, 24% because of Comfort, 16% because of resale
value, 7% because of Performance. And the rest 26% did not agree, 6% because of Fuel
efficiency, 10% because of after sales service and 10% because of Maintenance.
TABLE 4.14

If an opportunity arises in future to buy a bike, would you prefer to buy a Royal
Enfield bike again ?

Sl.no Opinion No of respondents Percentage

1 YES 43 86
2 NO 7 14
Total 50 100

DIAGRAM 4.14

Preference to buy a Royal Enfield bike again ?

OPINION

NO

14 %

YES

86 %

INTERPRETATION

Among the 50 respondents 86% of them have said yes and the rest have not agreed with it
TABLE 4.15

Will u recommend your bike to your friends and relatives ?

Sl.no Opinion No of respondents Percentage

1 YES 46 92
2 NO 4 8
Total 50 100

DIAGRAM 4.15

Recommendation to friends and relatives

OPINION
NO

8%

YES

92 %

INTERPRETATION

Among the 50 respondents 92% of them have said yes i.e.; they will recommend to their
friends and relatives and the rest have not agreed with it.
TABLE 4.16

Are you satisfied with the bike ?

Sl.no Opinion No of respondents Percentage

1 YES 44 88
2 NO 6 12
Total 50 100

DIAGRAM 4.16

Satisfaction level

OPINION
NO

12 %

YES

88 %

INTERPRETATION

Among the 50 respondents 88% of them have said yes they are satisfied and the rest have not
agreed with it.
TABLE 4.17

In your opinion which version of Royal Enfield products are better ?

Sl. OLDER VERSION NEWER VERSION

No opinion No of % of No of % of
respdt respdt respdt respdt
1 Pattern of gear 4 8 8 16
shifting
2 Better performance 2 4 8 16
3 Fuel efficiency 1 2 5 10
4 Crank weight 8 16 2 4
5 Design and comfort 3 6 6 12
6 Maintenance cost 2 4 1 2
TOTAL 20 40 30 60

DIAGRAM 4.17

Old version v/s newer version

18%
16% 16% 16%
16%
14% pattern of gear
12%
12% better performance
10%
8% fuel efficiency
8%
6% crank weight
6%
4% 4% 4%
4% design and comfort
2% 2% 2%
2% maintenance cost
0%
OLDER VERSION NEWER VERSION

INTERPRETATION
Among the 50 respondents 40% of them said that older version is better , 8% because of
better gear shifting Pattern, 4% because of better performance, 2% because of better fuel
efficiency, 16% because of greater crank weight, 6% because of better design and comfort,
4% because of lower Maintenance cost and 60% said that Newer version is better,16 %
because of better gear shifting Pattern 16% because of better performance, 10% because of
better fuel efficiency, 4% because of greater crank weight, 12% because of better design and
comfort, 2% because of lower Maintenance cost.
5.1 FINDINGS

 Out of total 50 respondents 82% belong to the age group of 18 – 25. 8% of the
respondents belong to 26- 35 age group. 6% belongs to 36 – 45 age group and balance
respondents lies between the age group above 45.
 Major respondents are male. that is 98%.
 Among the 50 Respondents majority of the respondents have chosen the brand Royal
Enfield based on the brand image.
 Almost 50% of the respondents are graduates.
 Most of the buyers belong to the income group of above Rs.20000 per month.
 Majority of the respondents uses the model Standard 350.
 Out of the total 50 respondents 8% of the bikes were bought between 1995 - 2000, 4%
of them in 2001 – 2005, 20% of them in 2006 – 2010, 64% of them in 2011 – 2015
and 4 % of them in the 2016 onwards.
 More than half the number of respondents travels 10 to 25 kms a day.
 Among the 50 respondents 32 respondents make purchase due to design and
performance of the bike.
 The purchases are mainly influenced by the opinion of the friends and relatives of the
respondents.
 Majority of the customers are satisfied with the product and price worthy agrees that
Royal Enfield is serving better than other brand of bikes.
 Among the 50 respondents 43 of them have said yes that if an opportunity arises in
future to buy a bike, he would prefer to buy a Royal Enfield bike again and the rest
have not agreed with it.
 Most of the respondents have said that they will recommend this brand of bike to their
friends and relatives.
 Among the 50 respondents 20 of them said that older version is better because of
greater crank weight and 30 of them said that newer version is better, mainly because
of better gear shifting Pattern and better performance delivered.
5.2 SUGGESTIONS

 From the study it is observed that the brand awareness of the Royal Enfield is not
upto the mark. So it suggested that the company should indulge in activities which
enhance the brand awareness of the customer.

 Though Royal Enfield bikes are giving moderate mileage in long distance travelling,
the mileage within city limits travelling is less. So the company can try to improve the
mileage level, so that the sales can be improved.

 By improving the after sales service the satisfaction level of the existing customers
can be improved. This can result in recommendation of the brand by the existing
customers to prospective customers.

 The management should ensure that the staffs are trained to service the customer in a
way that leaves a lasting impression.

 The organisation should ensure that its systems like quality, performance, service and
complaint redressal are designed to achieve excellence and customer delight.

5.3 CONCLUSION

It is inferred from the study that if these suggestions are implemented Royal Enfield can
place a dominant position in the market as well as in the minds of customers. Brand image of
“Royal Enfield” is the most influencing factor to purchase a Royal Enfield product. And from
the year 2011 onwards the sales volume has increased rapidly. Youth is the main customer
group, who makes purchase mainly because of the design and performance delivered and new
technology used. STANDARD 350 is the most leading model in terms of sales, and its design
and performance delivered are the major reasons for that increase in sales. It has become
monopoly in the cruiser bike segment in India.
 QUESTIONNAIRE
1. Name :
2. Occupation :
3. Age :
4. Gender :
5. Educational Qualification :
(a) High school (b) Graduate (c) Post Graduate (d) Others
6. Monthly income level
(a) Under 15000 (b) 15001 – 20000
(c) 20001 – 25000 (d) Above 25000

7. What is the rationale behind choosing the Royal Enfield brand ?

(a )Awareness (b) Experience (c)Recommendations
(d) Brand image (e) Design (f) Mileage
(g)Performance (i) Maintenance cost (j) Others
8. Specify the Royal Enfield model you are using now :
9. Mention the year of purchase :
10. How many kms on an average do you drive per day ?
(a) Less than 10 kms (b) 10 kms - 25 kms
(c) 50 kms – 80 kms (d) 80 and above

11. What are the factors that you considered while purchasing this particular model of Royal
Enfield ?
(a) Brand name & Price (b) Safety & Comfort (c) Design & Performance
(d) Mileage & Maintenance (e) Others

12. Who influenced you to prefer this bike particularly over the other brands ?
(a) Dealers (b) family members
(c) Friends and relatives (d) others (specify)

13. Does the producer’s advertisement influenced you for making purchase ?
(a) Yes (b) No
14. Do you think Royal Enfield bikes are worth their price ?
(a) Yes (b) No
15. Do you think Royal Enfield bikes are serving better than other brand of bikes ?
(a) Yes (b) No
If yes,what could be the edge point ? if no,what could be the likely reason ?
(1) Fuel efficiency (2) Design (3) Comfort (4) resale value
(6) After sales service (8)Performance (9) Maintenance
16. If opportunity arises in future to buy a bike, would you prefer to buy a Royal Enfield
bike again ?
(a)Yes (b) No
17. Will you recommend your bike to your friends and relatives ?
(a)Yes (b) No
18. Are you satisfied with your bike ?
(a)Yes (b) No
19. In your opinion which version of Royal Enfield products are better ?
Older version New version
(a) Pattern of gear shifting (b) Better performance
(c) Better fuel efficiency (d) Crank weight
(e) Design and comfort (f) Maintenance cost