CHAPTER 1

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INTRODUCTION TO MARKETING

Marketing is the process of performing market research, sellingproducts 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.

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An orientation, in the marketing context, related to a perception or attitude a

firm holds towards its product or service, essentially concerning consumers and

end-users. Throughout history, marketing has changed considerably in time

with consumer tastes.

Contemporary approaches

Recent approaches in marketing include relationship marketing with focus on

the customer, business marketing or industrial marketing with focus on an

organization or institution and social marketing with focus on benefits to

society. New forms of marketing also use the internet and are therefore called

internet marketing or more generally e-marketing, online marketing, search

engine marketing, desktop advertising or affiliate marketing. It attempts to

perfect the segmentation strategy used in traditional marketing.

CUSTOMER SATISFACTION

Customer satisfaction, abusinessterm, 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

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satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy. Within organizations, customer satisfaction ratings

can have powerful effects. They focus employees on the importance of fulfilling

customers’ expectations. Furthermore, when these ratings dip, they warn of

problems that can affect sales and profitability. These metrics quantify an

important dynamic. When a brand has loyal customers, it gains positive word-

of-mouth marketing, which is both free and highly effective.In researching

satisfaction, firms generally ask customers whether their product or service has

met or exceeded expectations. Thus, expectations are a key factorbehind

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.

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CUSTOMER SATISFACTION IN 7 STEPS

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a

customer. If you're not used to this sort of thing it can be a pretty nerve-

wracking experience. Rest assured, though, it does get easier over time. It's

important to meet your customers face to face at least once or even twice during

the course of a project.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait

days for a response to an email or phone call. It might not always be practical to

deal with all customers' queries within the space of a few hours, but at least

email or call them back and let them know you've received their message and

you'llcontact them about it as soon as possible. Even if you're not able to solve a

problem right away, let the customer know you're working on it.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the

phone. This is very true. It's very important to be friendly, courteous and to

make your clients feel like you're their friend and you're there to help them out.

There will be times when you want to beat your clients over the head repeatedly
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with a blunt object - it happens to all of us. It's vital that you keep a clear head,

respond to your clients' wishes as best you can, and at all times remain polite

and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly

defined customer service policy is going to save you a lot of time and effort in

the long run. If a customer has a problem, what should they do?

If the first option doesn't work then what? Should they contact different people

for billing and technical enquiries? If they're not satisfied with any aspect of

your customer service, who should they tell? There's nothing more annoying for

a client than being passed from person to person, or not knowing who to turn to.

So make sure your customer service policy is present on your site -- and

anywhere else it may be useful.

5. Attention to Detail

Have you ever received a Happy Birthday email or card from a company

you were a client of? Have you ever had a personalized sign-up confirmation

email for a service that you could tell was typed from scratch? These little

niceties can be time consuming and aren't always cost effective, but remember

to do them.

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Even if it's as small as sending a Happy Holidays email to all your customers,

it's something. It shows you care; it shows there are real people on the other end

of that screen or telephone; and most importantly, it makes the customer feel

welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them

Out

Sometimes this is easier said than done! However, achieving this supreme

level of understanding with your clients will do wonders for your working

relationship.

7. Honor Your Promises

It's possible this is the most important point in this article. The simple

message: when you promise something, deliver. Clients don't like to be

disappointed. Sometimes, something may not get done, or you might miss a

deadline through no fault of your own. Projects can be late, technology can fail

andsub-contractors don't always deliver on time. In this case a quick apology

and assurance it'll be ready ASAP wouldn't go a miss.

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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”. 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

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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

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marketing today is widely accepted among marketing researchers, its promoters

do not postulate the replacement of the transactional approach, but rather

juxtapose the two approaches. For example, delineates a strategy continuum, in

which different goods require different degrees of transaction- and relationship-

based marketing strategies. As a result of the focus on relationships in

marketing research, customer loyalty gained importance within research.

Before determining which stream the present study can be associated

with, however, it is important to create a clear understanding of different

customer loyalty concepts prevalent in research. This will be accomplished in

the following section.

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OBJECTIVES OF CUSTOMER SATISFACTION
PROGRAMME
Our Programs are research based, built on the three corner stone’s of customer

satisfaction: product quality, process and procedural quality, and relationship

quality. Our typical program assesses specific issues under each component, for

example:

Product Quality

          •       meets or exceeds expectations

          •       state-of-the-art technology

          •       validated, tested, & simulated to client specifications

          •       competitive pricing

          •       enhance customer value

Procedural Quality

          •       ease of ordering

          •       accurate fulfillment

          •       inventory meets needs

          •       on time delivery

          •       environmentally friendly packing

          •       packaged to prevent damage in shipment

          •       ease of tracking

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          •       appropriate adjustment/return policy

          •       order-through-delivery process bests competition

   Relationship Quality

         •       product knowledgeable contacts

          •       knowledgeable about client needs

          •       communicates at client knowledge level

          •       one-stop problem resolution

          •       problems solved at the root cause

          •       legendary customer service benchmarks competition

The tailored Programs provide direct, statistically valid, comparison data of you

to your competition on the following actionable areas:

•       Responsiveness

•       Competitiveness

•       Innovativeness

•       Quality

•       Customer Service

•       Long Term Partnering

It accurately quantifies your competitive strengths and weaknesses from your

customers' perspective. Using the data, it will help you focus strategic efforts to

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 retain and increase market share. The programs also provide direct measure of

the effectiveness of initiatives your organization has implemented during prior

year (after first year's participation). That is, you will have quantifiable internal

benchmarks (in addition to the external competitive benchmarks) on the repeat

annual surveys to judge progress based on actions you have taken during the

previous 12 months

TABLE SHOWING KEY FACTORS FOR CUSTOMER

SATISFACTION

COMPANY FUNCTION QUALITY FACTORS

Product

Sales Knowledge
Brochure detail
Marketing Mailing frequently
Order Delivery time
Distribution Order Completeness
Problem Response Time

After Sales Time to Resolve

Accuracy
Accounts Problem Response

Courtesy

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CUSTOMER CARE AND SALES PROCESSES

Service organizations are particularly dependent on levels ofcustomer care, as

the ‘people’ element in the marketing mixreflects. Customer care can play an

equally important role, however,in manufacturing, production and other

organizations providinggoods and services. For customer care programs to be

successfulthey need to span the entire organization.Popular guarantees 100%

customer satisfaction and has, over theyears, developeda more conscientious

approach to individualcustomers. There is Customer care training provided.

Though thismay initially be a very lengthy process as the ball starts

rollingthrough all sectors of the organization and costs will grow too, asfurther

investment is required to update and maintain the initiativein the future. To

provide an effective customer care services, everyemployee is highly motivated.

There are frequent internal newsletters circulated which strengthens the bond

throughout theorganization. Frequent performance appraisal throughout

theorganization is conducted to evaluate the employees and providecareer

developmental opportunities to potential employees. The customer care

program at Popular mainly have six main stages, as follows:

1. Objectives setting: For every month, target sales will be fixed by the Sales

Manager at the showroom.

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2. Current situation analysis: Present industrial trend is observed closely

and various promotional offers are introduced to boost sales if there is a

chance for a slump in sales. Also, a customer service audit is conducted

both internally and externally. Monthly sales targets fixed by the Sales

Manager.

3. Strategy development: Develop a strategy for raising levels of

bothcustomer service and sales from the current to the desired

standardbased upon any change in trends and the economic

conditionsprevailing. Each region is divided into 4 zones. Each zonal level

willbe under the charge of a supervisor under whom there are foursales

executives.It is the duty of these sales executives togenerate on

fieldenquiriesand to follow up the customers basedon the appointment

fixed.

4. Functional planning: Define training needs and other requirementssuch

problem-solving sessions or teambuilding exercise to executethe strategy.

Daily, a meeting ofall the staffs at their respectivebranch is convened. Here

they discuss their daily programs andtargets to meet plus they also discuss

about their previous day’swork among the team. They consider the

response of all theindividual customers met.

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 5. Implementation: Implement training and other initiatives

throughworkshops, seminars. The prospective customers are segregatedand

the issues raised by certain customers will also be addressed.Some

customers may not be satisfied with the present offers andprice. In such

cases efforts will be put up to make maximumadjustments and convert it to

sales.

6. Monitoring: Results are tested through customer and employeesurveys

and evaluation ofthe training methods is also conducted.The program is

improved and updated on a continuous basis.

HANDLING CUSTOMER COMPLAINTS

A complaint is any measure of dissatisfaction with your product or service, even

if it’s unfair, untrue, or painful to hear! Complaints may be about:

• Service Content, Delivery or Quality • Response Time

• Documentation • Personnel

• Billing • Communication

• Follow Up • Requests

This is a customer complaint resolution process that anyone can implement:

 Focus on the Customer

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If you can’t immediately solve the problem, respond to the customer and

identify an “owner” who will be responsible for final resolution. Complete the

communications loop with customer. If you’ve referred the complaint to others,

make sure there’s closure. If you’ve left the customer hanging without a

response, you’ve become part of the problem.

 Focus on the Complaint

Collect all complaints from all external customers and categorize them in a way

that allows you to analyze data to see trends, patterns, concentrations,

tendencies, etc.

 Focus on Process Improvement

Use the database of complaints to define processes that are important from the

customer’s perspective and to improve the most critical ones. Based on analysis

of the database, make appropriate investments to prevent issues that result in

customer complaints. If you can think of complaints as useful data for making

process improvements in your organization, you will go a long way towards

making changes that will differentiate you and make your work life easier, more

fun, and more responsive to customer needs.

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INDUSTRY PROFILE

AUTOMOBILE INDUSTRY TILL DATE

The automobile industry is one of the biggest industries in the world. Being a

major revenue and job generating sector it drives the economies of some of the

superpowers of the world. In India the automobile industry has grown by leaps

and bounds since the advent of the liberalization era the automobile industry

and especially the two wheeler segment has grown by leaps and bounds.

The liberalization has done away with primitive and prohibitive practices of

licensing and restricted foreign investment have been done away with. The

result of which was the entry of foreign players into the Indian market. The two

wheeler segment was largely dominated by Automobile Products of India (API)

and Enfield in the 50s. Later on towards the end of the 50s Bajaj Autos began

importing Vespa scooters from Italian company Piaggio. In the following

decades the automobile industry in India was mainly dominated by scooters

with API and later Bajaj dominating the market. There were very few products

and choices available as far as motorcycle is concerned and Enfield bullet and

Rajdoot dominated the market. The 80s saw the entry of Japanese companies in

the Indian market with the opening up of the market to foreign companies. Hero

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Honda and TVS Suzuki are companies formed in this era of market reform. The

market wasstill predominantly scooter dominated and Bajaj and LML were the

leading brands producing the products at that time.

The Japanese companies not only collaborated with Indian companies to

produce thealready existing products but also brought in new technology as a

result of which theever conquering 100cc bikes which were extremely fuel

efficient with 4 stroke engineswere launched in India. These proved to be highly

successful as they provided a cheapand affordable means of personal transport

to all those who could not buy a car. Theflourishing middle class took a great

liking for these bikes and the bike sales in Indiabegan to grow exponentially

year on year leading to Hero Honda becoming the leader inthe two wheeler

industry in India and the largest producer of two wheelers in the world.The post

90s era was the era of liberalization and weakening of restrictive measures.The

government went on an overdrive to support the industry and all FDI

regulations andlicensing was abolished. 100% FDI was allowed in the

automobile industry and theexcise duty was also considerably reduced to its

current level of 12% on two wheelers.All these factors combined with the rising

fuel prices, the increasing dispensableincomes of households, easy access to

finance, etc.have led to two wheeler industrybecoming the backbone of the

automobile industry in India.The two wheeler industry in India forms a major

chunk of the automobiles produced inIndia. According to Society of Indian

Automobile Manufacturers statistics for the year2009 – 2010, two – wheelers

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comprise 76.49% of market share among the vehiclesproduced in India.The

production share of two wheelers is quite similar to the market share. The

twowheeler industry comprises around 74% of the total automobiles produced

in India. TheSIAM data for the year 2009-10 states that 8,418,626 two wheelers

were producedduring the year against a total of 11,175,479vehicles produced

during the year.

India emerged as Asia's fourth largest exporter of automobiles, behind Japan,

South Korea and Thailand. India’s automobile sector consists of the passenger

cars and utility vehicles, commercial vehicle, two wheelers and tractors

segment. The total market size of the auto sector in India is approximately Rs

540 billion and has been growing at around 8 percent per annum for the last few

years. Since the last four to five years, the two wheelers segment has driven the

overall volume growth on account of the spurt in the sales of motorcycles.

However, lately the passenger cars and commercial vehicles segment has also

seen a good growth due to high discounts, lower financing rates and a pickup in

industrial activity respectively.Major automobile manufacturers in India include

MarutiUdyog Ltd., General Motors India, Ford India Ltd., Eicher Motors, Bajaj

Auto, Daewoo Motors India, Hero Honda Motors, Hindustan Motors, Hyundai

Motor India Ltd., Royal Enfield Motors, TVS Motors and Swaraj Mazda Ltd.

With the economy growing at 9% per annum and increasing purchasing power

there has been a continuous increase in demand for automobiles. This, along

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with being the second largest populated country, makes the automobile industry

in India a very promising one.

INDIAN TWO WHEELER MARKET

Ever since the old Lambretta scooter was replaced with the flurry of vibrant two

wheeler models, Indian two wheeler industry has seen a phenomenal change in

the way they perceive the Indian market. Two wheeler manufacturers are now

competing in an ever growing consumer market bybringing out new products

and features. The country has now grown into the second largest producer of

two wheelers in the world. Currently there are around 10 two-wheeler

manufacturers in the country, and they are Bajaj, Hero, Hero Honda, Honda,

Mahindra/Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. There have been

various reasons behind this growth. Because of poor public transport system,

the citizens found convenience in two wheelers. Added to this is the fact that the

average Indian still does not have the purchasing capacity for a more expensive,

four wheeler. The story of Mr. Ratan Tata inspired by a family of four

members travelling in Indian roads, not concerned about safety and the

evolution of the idea of TATA Nano has been quite famous globally. The Indian

two wheeler industries can be divided into motorcycles, scooters and mopeds.

The consumer has changed his preference from mopeds to scooters and then to

motorcycles. The trends seen in the past few years include females increasingly

using two-wheelers for their personal commutation and various two wheeler

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manufacturers designing vehicles specially to cater to needs of this segment.

One of the earliest revolutions in this industry was Kinetic’s introduction of the

concept of electronic/self-start and automatic gears which made two wheelers

comfortable and useable by women, when compared to old Bajaj Chetak

advertisements which showed middle aged females riding a Bajaj Chetak

scooter.

A recent trend in the industry has been electric vehicles, which mostly leverage

on their eco-friendliness and low operating costs, but is still not accepted well

due to the lack of reputation of the manufacturers and lack of trust on

technology, which is still being perceived in the nascent stages, especially

battery and inverters which prove to be very expensive components. TVS

recently leveraged this opportunity by launching a hybrid model of their non

geared scooter – TVS Scooty. The end of the last decade saw Bajaj taking a

radical decision to do away with the Scooter range and completely concentrate

on motorcycles, especially stating change in customer’s preference as the main

reason. The customers are left without a choice in most cases than to migrate

from the traditional scooters of the Indian family to the all youthful bikes.

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TOP EXPORT DESTINATIONS

The Indian Automobile industry has attained new heights in the last

ten years. It has seen the vehicle production growing rapidly and industry has

been making significant contribution to the employment, directly and indirectly,

and also to kitty of indirect taxes. Today, all major OEMs are in India and many

of them have made India a hub for their small cars and exports.

In December 2006, Government had formulated a ten-year Automotive Mission

Plan with an aim to achieve domestic vehicle market of $82-119bn by 2016 and

$12bn export of vehicles.It also aimed at making India 7thlargest vehicle

producing country in the world by 2016. And, we have already achieved this

milestone in 2010, which is good six years ahead of the target.

 In this category, SAARC countries have been one of the key destinations

for Indian exports with three of the SAARC countries, Sri Lanka,

Bangladesh and Nepal featuring in the top 6 export destinations for Indian

two wheelers segment. However, exports to Sri Lanka, which used to be

the largest importer of two wheelers from India in 2006-07, have fallen by

almost 20% since 2006-07 to reach a level of $ 63mn of exports in 2009-

10.

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 The top most destinations for exports in this segment is Nigeria which

imported two wheelers worth $ 103mn in the year 2009-10 up from $ 85mn

in 2008-09, a growth of 21% approximate. In fact, Nigeria has emerged as

one of the fastest growing destination for Indian two wheeler exports over

past 4 years. India exported two wheelers worth merely $ 6mn in Nigeria in

2006-07 which has grown by 15 times to reach an export level of $ 103mn

in 2009-10. Amongst the top 5 export destinations in this segment,

Colombia experienced the highest increase in growth of imports from India

in 2009-10. Exports of two wheelers to Colombia increased by 45% in

2009-10 over 2008-09.

FUTURE PROJECTIONS

 The Indian automobile industry is expected to grow to US$ 40bn by 2015

from the current level of US$ 10bn in 2009. By the year 2016 the industry

is expected to contribute 10% of the nation’s GDP. The industry

manufacturers over 11mn vehicles a year employing more than three

million people.

 The greatest challenge and competition would be from the Chinese

automobile industry. It has been able to give stiff competition to India in

terms of productivity, cost of manufacturing and technology. Again the

present trend of excess manufacturing capability, reduced margins put

additional pressure on the industry.

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 On the positive side, India’s strength in software sector, combined with

skilled labor and low cost of manufacturing should place it in a favorable

position globally.

 Two wheeler industry gains more profit Considering the scenario of traffic

and roads in India, and the rate at which infrastructure is growing in

comparison with the market, any fool will prefer to travel in a two wheeler

(for regular use, not for picnic or time pass or once in a while trips). For the

simple reason that, with a two wheeler, sneaking anywhere is far easier

than a four wheeler. And definitely faster too. And then comes the bigger

problem of parking. Two wheelers can be parked anywhere on the road,

but that’s not the case with a four wheeler. So, the whole point is unless

there is some way where these two issues are addressed, I don’t think

anything significant is going to happen.

 It gives the optimistic view about the industry and the overall industry

shows positive growths which recommend the investors to keep a good

watch on the major’s players to benefit in terms of returns on their

investments.

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RECENT TRENDS IN TWO WHEELER SECTOR

 The international trends suggest that the growth of the two-wheeler

markets will continue unabated for some time. In value terms, the BRIC

motorcycles market grew by 14.7% between 2006 and 2010 to reach a

value of $32.4 billion (Brazil alone growing by 32% pa). By 2013, the

market is forecast to have a value of $54.7 billion.

 The global motorcycle demand has been growing at 6-7% pa and is

estimated to be about 80-85 million units per annum. India has emerged

as one of the key players with a domestic market that is nearly about 11%

of the global market and growing significantly faster. The high base

implies that India and Indian companies are set to enter a stage where

they are likely to be the preferred suppliers for motorcycles. This is likely

to lead to further innovations and efficiency gains.

 Of course, the Indian market is significantly different with the segment

below 150 cc being the dominant segment. This is unlike the developed

world, where it is the larger bikes that dominate the market volumes.

Indian consumption is also likely to shift significantly toward

international trends, but in the foreseeable future, it is the smaller bikes

that will remain the mainstay.

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 At present as many as 72% of the bikes are in the entry segment (defined

as 75 to 125 cc), and 27% are in the executive segment (defined as 125-

250 cc). Only 1% of the bikes are in the premium segment.

 The premium segment is expected to continue to be a niche segment and

its share is not expected to grow beyond 2-2.5% over the next decade.

However, that itself implies that it will be a market of about 200,000 to

250,000 annual units, which is substantial and attractive. (As a

comparison, the declining Japanese market currently consumes only

about 350,000 motorcycles annually in the above-250 cc category, having

fallen sharply over the past few years).

27
CHAPTER 2

28
 LITERATURE REVIEW

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.

Customer satisfaction plays a crucial role in enabling an organization to change

and develop with customers. Keeping the existing customer contended is

generally much easier, takes less time and involves less expense. The reason for

this is that it takes more time to find new prospective customer. In this context

study is conducted with special reference to customer satisfaction. A company

can earn more profits only when it has strong customer care towards product

and services offered by the company. So to have strong customer care it has to

provide a competitive price further advertising to increase.

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CHAPTER 3

30
OBJECTIVES OF THE STUDY

1. To understand the reasons for purchasing Royal Enfield bikes.

2. To know about the experience after purchase relating various parameters

(Service, bike performance, mileage etc).

3. To ascertain the barriers to purchasing a Bullet for a prospective

customer.

4. To ascertain the factors that affects the choice of a Bullet as a motorcycle

for common man.

5. To propose an effective Promotional campaign plan for brand Royal

Enfield.

6. To determine the customer’s satisfaction regarding bikes and after sales

service.

SCOPE OF THE STUDY

This study includes Customer’s response and awareness towards the brand,

products and services of Royal Enfield.The results are limited by the sample

size 75 numbers and therefore the opinion of only selected customers is taken

into consideration. Mainly this study is conducted in NOIDA and the scope is

limited.

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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 businessterm, is a measure of how products and

services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or

percentage of total customers, whose reported experience with a firm, its

products, or its services (ratings) exceeds specified satisfaction goals."

3. Respondents- A person who replies to something, esp. one supplying

information for a survey or questionnaire or responding to an

advertisement.

4. Objective- An end that can be reasonably achieved within an expected

timeframe and with availableresources.

5. Bike- A motor vehicle with two wheels and a strong frame.

6. Buying- To acquire in exchange for money or its equivalent purchase.

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CHAPTER 4

33
RESEARCH METHODOLOGY

The research will be carried out in various phases that constitute an

approach of working from whole to part. It includes subsequent phases trying to

go deeper into the user’s psyche and develop a thorough understanding of what

a user looks for while buying a bike.

The first phase is completely internal where it is stormed over the most effective

route of action, considering that Bullet users in NOIDA 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.

34
TOOLS OF DATA COLLECTION

The information relevant for study was drawn from Primary data collected

through survey method, which alone was not sufficient. Hence Secondary data

was collected to study successfully.

 Primary data- In order to find out customer satisfaction regarding bikes

of Royal Enfield Primary Data was collected by personally visiting the

dealerships and showrooms. With the help of a well laid questionnaire, I

took the feedback from the customers who were coming for the services

of their bikes at the dealerships. As well as I contacted some of the

customers through telex calling by taking the data about the customers

from the customer data register of the dealership. I interviewed them and

discussed with the showroom staff as well as with the employees at Royal

Enfield which helped me to prepare the research Report.

 Secondary data-The Secondary Data collection involved internet search,

browsing magazines, newspapers and articles and papers related to the

two wheeler industry in India. Numerous Journals and books related to

the topic were also browsed to understand the dynamics of the industry.

35
SAMPLE DESIGN

The research was carried out in various phases that constituted an

approach of working from whole to part. It included subsequent phases trying to

go deeper into the user’s psyche and develop a thorough understanding of what

the user looks for while buying a bike. In order to get a perspective from non-

Bullet riders as to what are the reasons for not choosing a Bullet, I administered

the same questionnaire to riders who used other motorcycles keeping in mind

the time and cost constraints.For the customer satisfaction study a sample of 75

persons was chosen from the in NOIDA city. The sample was judgmental and

methodology was convenient random sampling.

Size of Sample 75
Sampling technique Convenient Random Sampling

method
Location from which samples were NOIDA city

taken

PLAN OF ANALYSIS
36
  Raw Primary data has been collected with help of questionnaire. The raw

data has been tabulated with the help of table. From the tables, concept,

analysis and inferences are drawn which in turn was used for

interpretation. Based on, these charts were prepared to better pictorial

understanding of the study.

 From the set of inferences and interpretation, conclusion have been drawn

which is followed by suggestions, keeping the objectives in mind

throughout the study.

LIMITATIONS OF THE STUDY

37
  This research is geographically restricted to NOIDA city only. Hence the

result cannot be extrapolated to other places.

 The study is restricted only to the organized sector of two wheeler

industry.

 Sample size was confined to 75 respondents keeping in view of time and

cost constraints.

 Findings are based on sample survey. The information executed by

respondents may or may not be true because some respondents may not

be serious. However all possible has been made to collect the information

as authentically as possible.

 All interview questions are undisguised or direct. Hence there is a scope

for the respondents to be biased or pretentious.

 This project has been taken up at the undergraduate level and the

knowledge and experience of the student is limited and hence may not be

professional enough.

OVERVIEW OF CHAPTER SCHEME

38
Chapter-1 Introduction- It’s all about the Introduction part. It mainly consists

of introduction to Marketing with its types, approaches, research and market

segmentation. Then comes introduction about Customer Satisfaction with its

steps, customer loyalty and concepts, handling customer complaints, how to

deal with dissatisfied customers and objectives of customer satisfaction

program.Later about automobile industry till date, Indian two wheeler market

and its recent trends.

Chapter-2 Research Design- It consists of the title of the study, statement of

problem, objectives and scope of the study, operational definitions, research

methodology, data collection, sample design, plan of analysis and finally the

limitations of the study.

Chapter-3 Company Profile- This chapter contains the historical background

of the company Royal Enfield, company’s vision and objective, Royal Enfield

products, organizational chart and SWOT analysis of Indian two wheeler

markets and Royal Enfield.

Chapter-4 Data Analysis and Interpretation- This chapter consists of the

analysis and interpretation from the data collected through questionnaires, tables

and graphs representing it.

Chapter-5 Findings and Conclusion - This chapter contains the findings

drawn from the study and final conclusion about the whole project. Also few

suggestions are posted.

39
Chapter-6 Suggestions- This chapter contains some suggestions to the

company.

HISTORY OF THE COMPANY

Mid 19th century England The firm of George Townsend & Co. opened its

doors in the tiny village of Hunt End, near the Worcestershire town of Redditch.

40
The firm was specialized in sewing needles and machine parts.In the first flush

of enterprise, flitting from one opportunity to another, they chanced upon the

pedal-cycle trade. Little did they know then that it was the beginning of the

making of a legend.Soon, George Townsend & Co. was manufacturing its own

brand of bicycles. And in 1893 its products began to sport the name ‘Enfield’

under the entity Enfield Manufacturing Company Limited with the trademark

‘Made Like a Gun’. The marquee was born.

INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors (formerly Enfield of India)

FOUNDED 1893, as Enfield Manufacturing Co. Ltd.

DEFUNCT 1971

HEADQUARTERS Redditch, Worcestershire, England

KEY PEOPLE Founders Albert Eadie and Robert Walker Smith

PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

Profile of the 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. It stems from the British

manufacturer, Royal Enfield at Redditch. Royal

41
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.

Itlooked 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.

42
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 PragatiMaidan in

New Delhi, the event saw more than 400 global brands showcasing new

technology, products and show-off concepts.

Royal Enfield was also a part of the event, displaying the recently launched

Royal Enfield Classic 500 EFI and the Royal Enfield Classic 350. The main

stays of the Royal Enfield display were the soon to be launched variants of the

Classic - the Royal Enfield Classic Chrome and the Royal Enfield Classic Battle

Green.

The Expo turned out to be a rather rewarding experience for Royal Enfield with

the Royal Enfield Classic and the Marketing team picking up as many as five

awards.

Awards 2010:

- Apollo Auto India Awards 2010: Best Brand

- Zigwheels.com Viewers Choice Bike of the Year 2009

- Zigwheels.com Bike of the Year above 251cc

- NDTV Profit Car & Bike Awards 2010: Motorcycle of the Year above 250 cc.

- NDTV Profit Car & Bike awards 2010: Best PR Communications Team.

43
EVOLUTION OF ROYAL ENFIELD

THE BEGINNING(1851 – 1890)

Hunt End, England was a village of several small

mills manufacturing needles and fish-hooks. It

was here in 1851 that George Townsend put up

his needle-making mill, which he named Givry Works. But it wasn’t until his

passing away that his son, George Jr. and his half-brother brought into Givry

Works one of the first 'boneshakers' – a crude cycle. It had a backbone of iron,

with wooden wheels, iron tires and pedals of triangular pieces of wood! Though

the bike was a source of some amusement, George and his team felt they could

easily improve on it. The earliest modern safety bicycle with two wheels of

equal size had appeared in about 1880. All manufacturers were trying their hand

at this new venture. Sowas George Townsend Jr. By luck, he chanced upon an

invention in his neighbourhood – a saddle that only used one length of wire in

the two springs and in the framework. This was adopted, patented and marketed

as the 'Townsend Cyclists Saddle & Spring'. He had entered the bicycle parts

trade!

From bicycle parts, Townsend slowly moved on to producing bicycles himself.

He was also supplying a wide range of parts to other manufacturers - Givry

Works was growing rapidly. Over the next three years he developed his own

44
range of over two-dozen machines. Each machine, known locally as the

'Townsend cycle' was reputed for its sturdy frame, a character that all Enfield

bikes would follow.

THE COMING INTO BEING (1891 – 1900)

1891 A Little Trouble-Townsend got himself into a bit of financial trouble in

about 1890 and called in some financiers from

Birmingham. Unfortunately, they didn’t quite

see eye to eye. So Townsend parted ways with

the financiers leaving the company to them. The

financiers then brought in Albert Eadie and R.W.

Smith. They took control of Townsend’s in

November 1891. The following year the firm was re-christened ‘The Eadie

Manufacturing Company Limited’. Soon after, Albert Eadie got a lucrative

contract to supply precision rifle parts to the Royal Small Arms Factory in

Enfield, Middlesex.

1892 Kick Starting Royal Enfield- A new company was

created to market these new design bicycles called

‘The Enfield Manufacturing Company Limited’. By

October 1892, the Enfield bikes were announced to

45
the public. The following year the word Royal (after the Royal Small Arms

Company) was added and thus Royal Enfield began. Then in 1893 the Royal

Enfield trademark ‘Made like a Gun’ appeared. Britain was caught up in a

patriotic fervor and the slogan caught the spirit of the time. In 1899 the first

mechanical vehicle was advertised by Enfield Cycle Company. It was available

in both tricycle and quadric cycle form, powered by a De Dion 1.5 hp engine.

The high wheels, solid tires, block chains and heavy cross frames had by then

given way to Diamond frames, the Hyde Freewheel, Enfield 2 speed hub and

the well knownEadie 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.

46
 MOTORCYCLES (1900 - 1910)1904-Four

Wheelers and Three

Buoyed by success, Smith and Eadie decided to

extend the range of quadric cycles and tricycles to

include motorcars. The first Royal Enfield cars

were built in 1901 and were on the road in 1902. It

was an 8hp, using a DE Dion engine. The body was made in Leicester and

painted yellow hence car was known as ‘The Yellow Car’. But this was just a

temporary phase, a wild romance that was soon to die.

1909-Motorcycle

Craze

It would be interesting to note here that

motorcycling was thought to be a temporary

enthusiasm that would soon fade out! A brief spin

on a motorbike then took several hours of preparations - tuning the tiny water-

cooled engine, getting the tires pumped, the gears oiled and a supply of spare

parts packed. In 1909, Royal Enfield took the biking world by surprise. At the

motorcycle show that year, they displayed a small 2 1/4 hp V twin-engine

machine built in the Swiss tradition, which ran very well. A slightly larger

model was developed in 1911. A 2 3/4 hp, with all chain drive incorporating the

well-known Enfield two-speed gear. This model stood up until 1914.

47
THE ROYAL ENFIELD BIKES (1911 - 1920)
1911-Enfield and the War

The First World War began in 1914. Royal

Enfield was called on to supply motorcycles to

the British War Department and even awarded a

contract to build bikes for the Imperial Russian Government during the same

period. The machine gun combination and the 6hp stretcher-carrying outfit were

some of the models produced for the war purpose. Enfield started using its own

engines - a 225cc two-stroke single and a 425cc V-twin about this time. Post-

war, it produced a larger 976cc twin and continued to produce the two-speed

225L until 1929. In 1917, the officers of the Women’s Police Force were issued

with a 2 1/4RE 2 stroke. Interestingly, the models of this period featured 600cc,

inlet-over-exhaust, closed valve gear, hand-operated oil pump, two-speed

countershaft gearbox and chain final drive. In the 1913-1914 Enfield V-Twin

the lubricating oil was contained in a glass tank attached to the frame tube that

ran from the seat to the rear of the engine. This worked perfectly and had the

added advantage of providing an instant visual check of oil levels. The 1915

make 675cc in-line 3-cylinder 2-stroke prototype was the worlds’ first with this

configuration and engine type.

THE INTERWAR YEARS (1921 - 1930)

1924 The First Four-stroke-The interwar year was

a period when the sidecar reached its zenith. In

48
July 1925, the Royal Enfield V-Twin-engine Dairyman’s Outfit took part in the

ACU Six Days’ Trial for Commercial Sidecars and obtained a Special

Certificate of Merit for completing an arduous course without loss of marks.

The year 1924 saw the launch of the first Enfield four-stroke 350cc single using

a JAP engine.

1928-The Depression

In 1928, Royal Enfield adopted saddle tanks and

center-spring girder front forks – one of the first

companies to do so. The bikes now with a modern

appearance and comprehensive rangemeant

continuous sales even during the dark days of depression in Great Britain

towards the end of 1930. In 1927 Royal Enfield produced a 488cc with a four-

speed gearbox, a new 225cc side-valve bike in 1928, and a four-stroke single in

1931. Several machines were produced in the next decade, from a tiny two-

stroke 146cc Cycar to an 1140cc V-twin in 1937. Can you even imagine that

Royal Enfield’s range for 1930 consisted of 13 models!

ESTABLISHING BULLET (1931 - 1940)

1933 The Bullet Arrives-In 1931 a four-valve, single-

cylinder was introduced, and christened 'Bullet' in

1932. It had an inclined engine and an exposed

valve gear. It was then that the first use was made

49
of the now famous Bullet name. Longer stroke, four-valve head exposed valves

and heavily finned crankcase werethe features that ran from 1932 until the end

of 1934.

1940 The Second World War-The most well known

offering for the Second World War was no doubt

the ‘Flying Flea’. Also known as the ‘Airborne’,

this lightweight 125cc bike was capable of being

dropped by parachute with airborne troupes. The Flea was fitted into a steel

tubular cage called the ‘Bird Cage’, which had a parachute attached to it. The

cage aided in packing turning handlebars easily.

POST WAR BULLETS (1941 - 1950)

1948 Bigger and Better-The 1939 Bullet 350 kick-

started the post-war models. They used two

rocker boxes for the first time. This enabled

better gas flow and consequently higher

volumetric efficiency. Royal Enfield’s own designed and manufactured

telescopic front fork placed the Redditch marquee at the very forefront of

motorcycle design. The biggest advancement introduced by the new Bullet was

its swinging arm rear suspension system and hydraulic damper units

themselves. In 1947 Enfield made a J2 - the first model with a telescopic front

50
end, followed in 1948 by a 500cc twin (Enfield's 25bhp answer to the Triumph

Speed Twin), which stayed in production until 1958.

1949 The Indian Debut-In 1949, the 350cc Bullet

was launched in India, when Madras Motors won

an order from the Indian Army for the supply of

motorcycles. It was the beginning of the reign of

the Bullet in the subcontinent.The Madras Motor Company started off by

receiving the Bullet in kits and simply assembling them. Then they began

making the frames. After this Enfield started sending the engine in parts to be

assembled in India. Eventually they were also manufacturing the engines, which

meant that they were making the complete bike. For the next thirty years, the

design of their bike remained unchanged! In 1950, several models were

introduced: the 650cc Meteor twin; a 250cc Clipper; a short stroke 250cc

Crusader; 250cc Trials; Super 5; Continental; 500 Sports Twin; Super Meteor;

Constellation and the Interceptor.

A TALE OF TWO CITIES (1951 - 1960)

1951-In the UK…Never before in British

automobile history had so much been done in a

single decade, not just by Royal Enfield, but the

every other marquee of the time. All new

51
engines, all new configurations, new paint schemes, new capacity classes… the

motorcyclist had never had such a wide choice ever before. The 1950s saw the

market open up both ways, downwards for smaller capacity, light and

maneuverable machines, and upwards for larger capacity, high powered and

reliable motorcycles. The Royal Enfield showrooms in the UK saw everything

from 125cc two strokes to the mighty700ccMeteor.

1955-Meanwhile in Madras…The Indian Army, the sole

reason why the Bullet was brought to India in the first

place, insisted that they would continue doing business

with Madras Motors only if the Bullet was produced

indigenously.The Enfield India Bullet of the late fifties was quite a different

motorcycle from the one we are used to today. Using the famed Lucas Magdyno

ignition system, the 1955 Bullet was almost a clone of the 52 RedditchBullet.

The frame, electric tinware and rolling chassis, however, were to undergo many

changes over the next ten years, with the Bullet slowly evolving into the

familiar form we know and love today.

A TALE OF TWO CITIES. NO… THREE! (1961 - 1970)

1961-Back in the UK…In 1960, the badge

arrangement with Indian (Of America) had

ended, so Enfield was no longer sold under the

Indian marquee (Royal Enfield rival, British

52
AMC company, acquired the Indian Sales Corp. in 1959). However, in 1961,

Eddie Mulder won the Big Bear Enduro on an Enfield, which

gave the company a new foothold in the U.S. under its own name and started a

new marketing of the product. Models available in the U.S. that year included a

700cc twin and six street scramblers, ranging from the 250cc Hornet to the

500cc Fury (essentially the single-cylinder Bullet) to the 700cc Interceptor.

Elliot Shulz also dominated the half-mile dirt track in Los Angeles on an

Enfield that year. Enfield won 31 out of 39 races in 1961 and had several

spectacular victories in 1964.Royal Enfield had arrived on The Continent! But

things at Redditch had hit a bad patch.

 1963-But back home in Madras…By 1970, Enfield

India was a company established in its own

right, and with a production line going full

steam, the need for collaboration with Enfield of

the UK and Villiers of the UK was no longer seen. But the Bullet flew true and

strong. A number of changes had already been made to the tinware 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.

53
ALL THAT ENFIELD'S ISN'T A BULLET (1971 - 1980)

1973 The Mini Bullet-With the success of the

Sherpa, Enfield India launched the 173cc

Villiers-powered Crusader in India in 1973. A

totally indigenous effort, this small motorcycle

used many Bullet chassis parts, including fork

legs and mudguards, and instantly found a market among the many that wanted

a Bullet, but were diffident about handling it’s weight and size.The Mini Bullet

too was introduced this year. This motorcycle was a 200cc two stroke sporting

‘contemporary’ design. Enfield India attempted to reach out to the young

market, providing them with a zippy, reliable and economical two-stroke.

TOUGH TIMES AHEAD (1981 - 1990)

1983 Here comes the Lightweights-Like the adage

that goes, "when the going got tough, that's when

the tough get going". Enfield India got squarely

into thefray 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

54
young office going male, but among an increasing number of women who

found the step-through design convenient. The Explorer, with its contemporary

bikini fairing and 'fastback' tailpiece.Both bikes sported alloy wheels, a first in

India. Close on the heels of the little wonders came the Fury 175. Powered by a

175 Zundapp two-stroke engine with a five-speed gearbox, this refreshingly

quick motorcycle came fitted with a hydraulic disc brake. Again a first in the

country. And a bike, many feel, much too early in INDIA.

1984 Brand New Vintages-The 80s also saw the

Bullet in many different avatars. The Deluxe

models appeared, in resplendent chrome and

metallic colors, and 12 volt electrical were offered

as an option, to aid in brighter lighting and easier

starting. It was also the year when Enfield India grew confident enough about

their flagship product to begin sending 'coals back to Newcastle'. Owing to their

status as 'brand new vintages', Enfield Bullets found a strong niche market in

the UK and Europe, among people looking to come back to motorcycling.

ENFIELD BECOMES ROYAL ENFIELD (1991 - 2000)

1990 Heavy Fuel-The 1990's saw many revolutionary models from the company.

The Taurus Diesel was the first production Diesel motorcycle in the world.

55
1993 Bullet 500-The Bullet 500 was launched in June this year. It went on to

become the most coveted model.

1994 Eicher acquires Enfield-In March the ailing company got a new lease of life

when Eicher group acquired Enfield India Company. The company name

changed to Royal Enfield Motors Limited.

ROYAL ENFIELD (2001 - 2010)

2001-The Dare Devils, the motorcycle display team of the Corps of Signals,

Jabalpur forms a Human Pyramid of 201 men on 10 Enfield 350cc bikes and

rides a distance of more than 200 meters.

2002-India’s first Cruiser – The

‘THUNDERBIRD’- is launched.BBC Wheels

awards it ‘The Best Cruiser 2002’ title. The

Bullet Machismo enters commercial production. Dan Holmes and Johnny

Szoldrak won the National Road Race Championship (60’s Class) on a Bullet.

2003

The first ‘RIDER MANIA’ gets together is held in

Goa.

REDS are formed in Pune.

The Bullet enters the Automotive ‘Hall of Pride’ at

56
the ICICI Overdrive awards.

1000 Riders descend on Redditch for the Royal Enfield Owners Club 25th

Anniversary.

Royal Enfield is one of the top ten 125-500 cc brands in UK.

2004-The 2004 Bullet Electra is launched.

The retro styled Bullet Machismo is rated

‘No.1Cruiser’ in TNS Auto car survey.The Bullet

Electra International with a lean-burn engine is launched in the UK.34 men ride

simultaneously on a Bullet, setting a new world record.

2005

Royal Enfield India Celebrates 50 glorious

years of motorcycling and unveils a

blueprint for the future. The 2005 Bullet

Electra features a revolutionary 5-Speed left side gear shift that makes the

marquee more accessible to motorcyclists. The Legend rides on…

2006

Royal Enfield develops a fully integrated Twin Spark, 5-Speed engine that

delivers a dramatic increase in performance and efficiency. The new engine will

power all domestic and International models from 2007 onwards.

57
 2007

Royal Enfield launches the all new limited edition

Machismo 500LB with customized accessories.

The legendary Bullet 350 needs no

introduction. Now Bullet 350 is with all new

UCE engine. This classic machine has kept

place with advances in engineering and

ergonomics without diluting its impeccable pedigree. 

 A long wheel base and bigger tires provide increased stability and road grip,

making it ideal for long distance travel.Its aristocratic black & gold livery and

thumping engine beat remind passers-by that they are in the presence of

automotive royalty.

2008

The Thunderbird Twins Park will be the first

model to feature Royal Enfield’s revolutionary

Unit Construction Engine.All the well loved

features of the Thunderbird have been retained and enhanced in some cases.

Also, the twin benefit of improved performance and engine efficiency makes

this motorcycle hard to beat in terms of pure riding pleasure and visual delight.

58
The evolutionary mix of old and new features in this motorcycle will surely

delight its owners.

2009

The smaller twin of the Classic 500,

the Classic 350 will hold its own against any other motorcycle and then pull

some more. The Classic 350 shares its powerplant 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.

59
The Classic 500 comes to India. Armed with a potent fuel injected 500cc engine

and clothed in a disarmingly appealing post war styling, this promises to be the

most coveted Royal Enfield in history. For those who want it all. The power, the

fuel efficiency, the reliability and simple, yet drop dead gorgeous classic

styling. The classic turns heads not because it wants to but because it can’t help

it. You will appreciate the beat not just for the music it creates but also for the

muted feeling of strength and power that it signifies. The view is simply better

when you are astride a Royal Enfield Classic 500 – whether moving or still.

Nothing more to be said.

Army's stunt riders break record-

ARMY PERSONNEL IN NOIDA 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

60
extraordinary skill, courage, endurance and mental strength, entered the annals

of record books by performing this breathtaking feat on a 500 CC Royal Enfield

motorcycle at the Runway of Air Force Station Yelahanka in the presence of a

large number of military and civil dignitaries.The 'Tornadoes' was raised in

1982 after having given a stupendous display of daredevilry in the 1982 Asian

Games. "Since then the men of the Tornadoes Team by their sheer grit,

determination and spirit of adventure have created a niche for themselves by

rewriting various records," the release said.The team at one point of time had

achieved the distinction of holding seven world and national records of varying

degrees of complexity and fortitude, it said.

ORGANISATIONAL STRUCTURE

GENERAL MANAGER
(Proprietor)

61
Sales Manager Service Manager Service Manager

Showroom Service Accountant

In charge Supervisor
charge

Team Service Assistant

Manager Staffs Accountant

Sales

Representative

62
 CHAPTER 5

SWOT ANALYSIS
MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET

63
GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES

A Bajaj, Hero Honda Highly diversified - High buyer power

Aggressive - High competitive

promotion
rivalry

- High entry barriers

B TVS Selectively - Low entry barriers

diversified
- Narrow product lines
Aggressive imply that aggressive
Promotion promotions can eat into
market share

C Honda, Yamaha Selectively -High threat of

diversified
substitution (Rs 1 lakh car)
Moderate Promotion
- Low entry barriers

D Royal Enfield Highly specialized - Low buyer power, high

brand loyalty
Low Promotion
- Product diversification
will imply risk of brand
dilution

SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY

64
STRENGTHS WEAKNESSES

 Established brands  Extremely price sensitive

 Strong Brand Name  Short PLC
 Fuel efficient  High R and D costs
 Style statement
 Convenient in heavy traffic
 Cheap and affordable
 Easy and cheap finance availability
 Patents
 Good reputation among customers

OPPURTUNITIES THREATS

 Growing premium segment  The Rs.1 Lakh car

 Increasing dispensable income
 Environmental concerns
 Exports increasing
 Very strong demand in the 100cc.
segment dominated by limited
players.
 Cut throat competition
 Increasing number of players in the
market
 Rising raw material costs
 Increasing rates of interest on
finance

SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA

65
STRENGTHS WEAKNESSSES

 Size and scale of parent company  Small showrooms

 Effective Advertising Capability  Not much emphasis on aggressive
 Committed and dedicated staff selling
 High emphasis on R and D  Weak product diversity
 Experience in the market
 Established brand
 Established market channel
 Power, Speed & Acceleration

OPPURTUNITIES THREATS

 Growing premium segment  Cut throat competition

 Global expansion into the
Caribbean & Central America
 Expansion of target market (include
women)
 Increasing dispensable income
 1st mover advantage
 Increasing number of players in the
market
 Rising raw material costs
 Increasing rates of interest on
finance

TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE

66
 AGE NO. OF PERCENTAGE
RESPONDENTS
20-24 30 40%
25-29 19 26%
30-34 14 18%
Above 35 12 16%

TOTAL 75 100%

Analysis

From the above table it is clear that 40% of the respondents are aged between

20 and 24, 26% between 25 and 29, 18% between 30 and 34 and only 16% aged

above 35 years.

Interpretation

It is revealed that majority of respondents are between 20 and 29 years. From

this we can conclude younger generation and middle age are more interested in

Royal Enfield may be because this is the age where they start earning.

GRAPH No.1

67
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON AGE

16%

40%

18%

26%

20-24
25-29
30-34
Above 35

TABLE No.2

68
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER

GENDER NO. OF PERCENTAGE

RESPONDENTS
MALE 69 92%

FEMALE 6 8%

TOTAL 75 100%

Analysis

From the above table it is clear that 92% of respondents were male and female

respondents constituted just 8% of total responses.

Interpretation

It is clear that most of the users of Royal Enfield are males mostly because of

the manly look of the bikes.

GRAPH No.2

69
GRAPHSHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER

8%

92%
Male
Female

TABLE No.3

70
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS
OCCUPATION NO.OF PERCENTAGE
RESPONDENTS
STUDENT 33 44%

GOVERNMENT 5 6%
SERVICE
EX-SERVICEMEN 3 4%

PROFESSIONAL 21 28%

SELF-EMPLOYED 13 18%

TOTAL 75 100%

Analysis

From the above table it is clear that 44% of the respondents were students

pursuing their graduation or post graduation studies and 28% were

professionals. 18% of the respondents were self employed, 4% were ex-

serviceman and 6% belonged to government services.

Interpretation

It is clear that users are mostly Professional males, 20-35 years of age including

some students because of the looks and power of the bike.

GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS
71
 45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Student
Govt service
Ex-servicemen
Proffesional
Self-employed

TABLE No.4

72
TABLE SHOWING-THE ANNUAL INCOME GROUP OF
RESPONDENTS
INCOME GROUP NO. OF PERCENTAGE
RESPONDENTS
LESS THAN 1,20,000 39 52%

1,20,001-3,60,000 10 14%

3,60,001-7,20,000 14 18%

ABOVE 7,20,000 12 16%

TOTAL 75 100%

Analysis

From the above table it is clear that 52% of the respondents had an annual

income of lesser than 1,20,000, 18% had income between 3,60,001 and

7,20,000, 16% earned more than 7,20,000 per annum and 14% had income

between 120001 to 3,60,000.

Interpretation

It shows that Royal Enfield is placing their products in the appropriate and

reasonable price range and the people of income bracket less than 1,20,000can

easily afford this Bike.

73
GRAPH No.4
GRAPH SHOWING-THE ANNUAL INCOME GROUP OF
RESPONDENTS

16%

18%
52%

14%

Less than
1,20,000
1,20,001-
3,60,000
3,60,001-
7,20,000
Above 7,20,000

74
TABLE No.5
TABLE SHOWING-THE MODEL OF THE ROYAL ENFIELD
THE RESPONDENTS PRESENTLY OWN
MODEL NO. OF PERCENTAGE
RESPONDENTS
BULLET 500 11 14%

THUNDER BIRD 7 10%

BULLET ELECTRA 15 20%
MACHISMO 500 6 8%

BULLET 350 16 21%

CLASSIC 500/350 17 23%

OTHERS 3 4%

TOTAL 75 100%

Analysis

From the above it is clear that 14% of the respondents own Bullet 500, 10% of
them own Thunder Bird, 20% of them own Bullet Electra, 8% of them own
Machismo 500, 21% of them own Bullet 350 and 23% of them own Classic
500/350.

Interpretation

It clearly shows that customers are not attracted to only one particular model
due to the variants available and because the Classic 500/350 are the newly
released models they are fast moving now.

75
GRAPH No.5
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD
THE RESPONDENTS PRESENTLY OWN

18
16
14
12
10
8
Bullet 500
6
Thunder Bird
4
Bullet Electra
2
Machismo 500
0
Bullet 350
No. of Respondents
Classic 500/350
Others

TABLE No.6
76
TABLE SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS

PURCHASED BY NO. OF PERCENTAGE

RESPONDENTS
CASH 54 72%

LOAN 21 28%

TOTAL 75 100%

Analysis

From the table it clearly shows that the products of Royal Enfield are in the

acceptable price range, as we can see that purchasing way of the 72%

respondents are leading in the CASH sector and 28% on loan basis. Customers

are ready to pay for better facilities and technology and they feel that all bikes

deserves that price which Royal Enfield is offering.

Interpretation

It is clear that customers are easily affording the price of Royal Enfield bikes

and they are not feeling much problem with the amount.

GRAPH No.6

77
GRAPH SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS

60

50

40

30

20

10

0
CASH LOAN

TABLE No.7

78
TABLE SHOWING- THE NO OF RESPONDENTS
CONSIDERING OTHER MOTORCYCLE WHILE
PURCHASING ROYAL ENFIELD BIKE

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 27 36%

NO 48 64%

TOTAL 75 100%

Analysis

From the table it clearly shows that 36% of the respondents did go consider or

checked for an alternative motorcycle and 64% of them did not consider any

other motorcycle while purchasing their Royal Enfield bike.

Interpretation

It is clear that majority of the customers directly chose Royal Enfield as their

bike and dint even have a look at the nearest alternative bike and this shows the

loyalty of the customers towards the brand Royal Enfield.

GRAPH No.7
79
GRAPH SHOWING- THE NO OF RESPONDENTS
CONSIDERING OTHER MOTORCYCLE WHILE
PURCHASING ROYAL ENFIELD BIKE

70%

60%

50%

40%

30% 64%
36%
20%

10%

0%

YES

NO
No. of Respondents

80
 TABLE No.8
TABLE SHOWING- THE SOURCE OF AWARENESS FOR
CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD
BIKE
MEDIA NO. OF PERCENTAGE
RESPONDENTS
NEWSPAPERS 6 8%
MAGAZINES 24 32%
FRIENDS 11 14%
ROADSHOW 7 10%
TV ADDS 5 6%
WEBSITE/BLOGS 15 20%
SHOWROOM 7 10%
TOTAL 75 100%

Analysis

As we can see here the major promotional tool which is influencing the
customers is Magazines and Website which is around 32% and 20%
respectively, after that the source of awareness among customers is a mixed
response where in 14% from friends, 10% each from road shows and
showroom, finally newspapers consists 8% and 6% from Television adds which
is very poor.

Interpretation

It clearly shows that Advertisements are rarely recalled and are highly
ineffective amongst non-Bullet riders. It’s clear that Royal Enfield should
concentrate on its advertising campaign to reach the customers.

81
GRAPH No.8
GRAPH SHOWING- THESOURCE OF AWARENESS FOR
CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD
BIKE

35%

30%

25%

20%

15%

10%

5%

0%
newspaper
magazines
friends and
relations roadshow
tv adds
website
showroom

82
TABLE No.9
TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD
AFTER PURCHASE OF BIKE

MILEAGE NO. OF PERCENTAGE

RESPONDENTS
45km/lit & Above 5 6%

40-45 16 22%
35-40 26 34%

30-35 18 24%
Below 30 10 14%
TOTAL 75 100%

Analysis

From the above table it is clear that 56% of respondents gain mileage of 35-

45km/lit which is really good, 24% of them between 30-35km/lit, 14% below

30km/lit and 6% above 45km/lit.

Interpretation

It clearly shows that mileage of the Royal Enfield bikes is economical &

mileage between 35 and 40 that too on Indian roads with heavy traffic is a great

deal.

83
GRAPH No.9
GRAPH SHOWING-THE MILEAGE OF ROYAL ENFIELD
AFTER PURCHASE OF BIKE

30

25

20

15

10

0
45km/lt 40-45 35-40 30-35 Below 30

TABLE No.10
TABLE SHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE

84
 FREQUENCY OF NO. OF PERCENTAGE
BREAKDOWN RESPONDENTS
VERY OFTEN 8 10%

RARELY 19 26%

NOT AT ALL 48 64%

TOTAL 75 100%

Analysis

From the above table it is clear that 64% of the respondents say that there is no

problems or breakdown of their bikes after purchase, 26% say rarely their bikes

get repaired and 10% of respondents say their bikes breakdown very often.

Interpretation

It is clear that most of the Royal Enfield bikes doesn’t breakdown at all and it is

not problematic and not involved into repair always.

GRAPH No.10
GRAPHSHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE

85
 10%

26%

64%

Very often
Rarely
Not at all

86
TABLE No.11
TABLE SHOWING- THE PLACE OF PURCHASE OF ROYAL
ENFIELD BIKES & THEIR SATISFACTION LEVEL
TOWARDS IT
PLACE OF NO. OF PERCENTAGE
PURCHASE RESPONDENTS
SHOWROOM 48 64%
DIRECT SECOND 22 30%
HAND
USED VEHICLES 5 6%
DEALERSHIP
TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE

SATISFACTION RESPONDENTS
YES 57 76%
NO 18 24%
TOTAL 75 100%

Analysis
64% of the Bullet riders prefer to buy their bike from showroom only and 30%
may buy it Second hand dircetly. But none of them buys the bike through
brokers which shows that reliability of an outside party is low while making the
purchase decision among the Bullet riders.Also 76% of respondents are very
much satisfied with the place of purchase of their bike and 24% are not at all
satisfied.

Interpretation
It is clear that most of the respondents prefer to buy their bike brand new from
showroom only and majority of the customers are very much satisfied with the
place of purchase of their Royal Enfield bike. This also shows there is more
demand for new bikes.

87
GRAPH No.11
GRAPH SHOWING- THE PLACE OF PURCHASE OF ROYAL
ENFIELD BIKES AND THEIR SATISFACTION RESPONSE
TOWARDS IT

48
50 No. pf Respondents

45
40
35
30 22
25
20
15
5
10
5
0
Showroom Direct second hand Used vehicles dealership

Point of satisfaction

24%

Satisfied
Not Satisfied

76%

88
 TABLE No.12
TABLE SHOWING- THE AVAILABILITY OF SPARE PARTS
IN THE MARKET
AVAILABILITY NO.OF PERCENTAGE
RESPONDENTS
READILY 51 68%
AVAILABLE
DON’T GET THEM 8 10%
READILY
DON’T HAVE 12 16%
GOOD SPARES
SUPPLY
MAJOR 4 6%
HEADACHE
TOTAL 75 100%

Analysis

From the above it is clear that 68% of the respondents are satisfied with the

availability of spare parts and remaining 32% of respondents are discontent with

the availability of spare parts.

Interpretation

It is clear that majority of the respondents are satisfied with spare parts

availability and we can say that Royal Enfield has good distribution channel for

spare parts in the city.

89
GRAPH No.12

GRAPH SHOWING-THE AVAILABILITY OF SPARE PARTS

IN THE MARKET

6%

16%

10%

68%

Readily Available
Don't get them readily
Don't have good spares supply
Major headache

90
TABLE No.13
TABLE SHOWING- THEMAJOR PROBLEMS AFTER
PURCHASING ROYAL ENFIELD BIKE
PROBLEMS NO. OF PERCENTAGE
RESPONDENTS
HIGH 11 14%
MAINTENANCE
POOR AFTER SALES 7 10%
SERVICE
HIGH PRICE 15 20%

LOW MILEAGE 8 10%

NOISY VEHICLE 3 4%

NO PROBLEM 31 42%

TOTAL 75 100%

Analysis

Maximum number of people (42%) described that there is no problem with the
bike after purchase, 20% had an issue with the price range, third biggest
problemwas 14% of them felt high maintenance was required for the bike, only
4% of them felt it was noisy vehicle and while 10% of respondents each
refrained because of the low mileage and the poor after sales service of Bullet.

Interpretation
It is clear that majority of the people who choose Royal Enfield as their bike
don’thave any problems or issues with their bike’s performance.

91
GRAPH No.13
GRAPH SHOWING-THEMAJOR PROBLEMS AFTER
PURCHASING ROYAL ENFIELD BIKE

14%

10%
42%

20%

High maintainance
4%
10% Poor after sales
service
High Price
Low mileage
Noisy vehicle
No problem

92
TABLE NO.14
TABLE SHOWING- THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
POWER AND PICK UP
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 4 6%

AVERAGE 8 10%

GOOD 20 26%

EXCELLENT 43 58%

TOTAL 75 100%

Analysis

From the above table it is clear that 6% of the respondents rated very poor and
they were not at all satisfied, 10% of them rated average, 26% of them rated
good and maximum number of respondents i.e. 58% rated excellent and these
respondents were very much satisfied with their bikes power and pick up.

Interpretation

It is clear that majority of the respondents are satisfied with their bikes power
and pick up. This shows Royal Enfield has an excellent satisfaction level within
the customer.

93
GRAPH No.14

GRAPH SHOWING- THE RATING BY THE RESPONDENTS

FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
POWER AND PICK UP

45
Excellent
40
35
30 Good
25
20
15 Average
10
5
0 Poor
No. of Respondents

94
TABLE No.15
TABLE SHOWING-THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
COMFORT AND SAFETY
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 7 9%

AVERAGE 12 16%

GOOD 24 32%

EXCELLENT 32 43%

TOTAL 75 100%

Analysis

From the above table it is clear that 9% of the respondents rated very poor and
they were not at all satisfied, 16% of them rated average, 32% of them rated
good and maximum number of respondents i.e. 43% rated excellent and these
respondents were very much satisfied with their bikes comfort and safety.

Interpretation

It is clear that majority of the respondents are satisfied with their bikes comfort
and safety. This shows Royal Enfield has an excellent satisfaction level within
the customers.

95
GRAPH No.15
GRAPH SHOWING-THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
COMFORT AND SAFETY

9%

16%

43%

32% Poor
Average
Good
Exellent

96
TABLE No.16
TABLE SHOWING- THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
AFTER SALES SERVICE
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 11 14%

AVERAGE 13 18%

GOOD 27 36%

EXCELLENT 24 32%

TOTAL 75 100%

Analysis

From the above table it is clear that 14% of the respondents rated very poor and
they were not at all satisfied, 18% of them rated average, 36% of them rated
good and maximum number of respondents i.e. 32% rated excellent and these
respondents were very much satisfied with the after sales service.

Interpretation

It is clear that majority of the respondents are satisfied with their after sales
service and few respondents are not at all satisfied. This shows Royal Enfield
has a good satisfaction level within the customers.

97
GRAPH No.16
GRAPH SHOWING- THE RATING BY THE RESPONDENTS
FOR THEIR SATISFACTION LEVEL WITH RESPECT TO
AFTER SALES SERVICE

30

25

20

15 27
24

10

13
11

0
Poor Average Good Excellent
No. of Respondents

98
CHAPTER 6

99
FINDINGS

1. It is revealed that majority of users are between 20 to 29 years. From this

we can conclude younger generation and middle age are more interested in

Royal Enfield may be because this is the age where they start earning.

2. It is clear that most of the users of Royal Enfield are males mostly because

of the manly look of the bikes.

3. Users are mostly Professional males, 20-35 years of age including some

students because of the looks and power of the bike.

4. Royal Enfield is placing their products in the appropriate price range. As

the people of this income bracket less than 1,20,000 can easily afford this

Bike.

5. Customers are not attracted to only one particular model due to the

variants available and because the Classic 500/350 is the newly released

models they are fast moving now.

6. Customers are easily affording the price of Royal Enfield bikes and they

are not feeling much problem with the amount and purchasing way of

most of the customers is leading in cash sector.

7. Majority of the customers directly chose Royal Enfield as their bike and

dint even have a look at the nearest alternative bike and this shows the

loyalty of the customers towards the brand Royal Enfield.

100
 8.

CONCLUSION

The study has helped Royal Enfield dealers to understand whether the
customers are satisfied or not. If not what are main reasons for dissatisfaction of
customer towards the dealer and what are the ways of improving the satisfaction
level of customer towards dealer.

We can conclude younger generation and middle age are more interested in
Royal Enfield, the buying behavior is governed predominantly by the need for
Power and respect for the iconic Brand and users are mostly Professional Males,
20-35 years of age, including some students. Most of the customers are attracted
to newly released Classic 350/500, also customers are easily affording the price
of Royal Enfield bikes and customers are very loyal towards the brand Royal
Enfield.

Royal Enfield should concentrate on its advertising campaign to reach

the customers, mileage of the Royal Enfield bikes is very economical and most
of them prefer to buy their bike brand new from showroom with the spare parts
available in market easily.

Royal Enfield has an excellent satisfaction level within the customer for its
power, pick up, comfort, safety and with after sales service.

It is clear that Royal Enfield checks at the complaints registered by their

customers on regular basis to maintain its brand value and entire Royal Enfield
owner are passionate Royal Enfield fans.

101
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.

102
QUESTIONNAIRE

103
ANNEXURE
QUESTIONNAIRE
I am Venu S, a final year BBM student from Presidency College. This
information is required for successful completion of my project ‘A Study on
Customer Satisfaction towards Royal Enfield bikes, NOIDA.’ I request you to
kindly spare some of your time and fill the questionnaire below. Thank you.

RESPONDENT INFORMATION

Name:

1. Age:

2. Gender : Male Female

3. Occupation:

Student Government service

Professional Self employed other

4. Annual Income:

Less than 1, 20,000 1, 20,001-3, 60,000

3, 60,001-7, 20,000 Above 7, 20,000

5. Which model of Royal Enfield do you presently own?

Bullet 500 Thunder Bird

Bullet Electra Machismo 500 Bullet 350

Classic 500/350 others

104
 6. How did u purchase the bike?

Cash Loan

7. Did u consider other motorcycle while buying the Royal Enfield bike?

Yes No

- If yes which bike did you compare with?

Bike cc

8. Please specify your source of awareness of Royal Enfield while buying

your bike?

Newspapers Magazines Friends

Road shows TV Adds Website/blogs

Showroom Others

9. Please specify your bike’s mileage?

45km/lit & above 40-45

35-40 30-35 Below 30

- Are you satisfied with the bikes mileage?

Yes No

10. Frequency of breakdown of your bike?

Very often rarely Not at all

11. Which place did you prefer to purchase your Royal Enfield bike?

Showroom Direct second hand

105
 Used vehicles dealership

Are you satisfied purchasing there? YES NO

12.How about the availability of spare parts?

Readily available don’t get them readily

Don’t have good spares supply Major headache

13. Any major problems after purchasing Royal Enfield bike?

No problem

High maintenance Poor after sales service

High price Low mileage Noisy vehicle

14. How many stars will u rate for your satisfaction level with respect to
power and pick up of your Royal Enfield bike? Poor Average
Good Excellent

15. How many stars will u rate for your satisfaction level with respect to
comfort and safety of your Royal Enfield bike?

16. How many stars will u rate for your satisfaction level with respect to after
sales service of your Royal Enfield bike?

106
BIBLIOGRAPHY

107
 BIBLIOGRAPHY

Books Referred

 Marketing Management, 13th edition - Philip Kotler

 Survey Research Methods - Charles Babbie

Magazines Referred

 The Bullet-In, The Magazine For AllRoyal Enfield Bullet

Enthusiasts.

 Royal Enfield Magazine, The BEAT.

Websites Referred

 www.google.com

 www.royalenfield.com

 www.wikipedia.org

 www.enfieldmotorcycles.com

108