Royal Enfield Classic 350

Submitted in partial fulfillment for the course of

Business Design Innovation Project
(Study of Service based Business)

Submitted by:
Suryansh Tiwari (25)

PGDM- Business Design & Innovation

Under the guidance of:

Prof. Prakash Unakal
Dean – BDI WeSchool, Bangalore
 Declaration

I, Suryansh Tiwari (25) student of Welingkar Institute of Management

Development & Research, Bengaluru, in our 2nd Trimester of PGDM- Business
Design & Innovation, hereby declare that the research work entitled “Royal
Enfield Classic 350” submitted to WeSchool, Bengaluru during the academic
year 2020-21, is a record of an work done by us under the guidance of Prof.
Prakash Unakal.

This study is submitted under partial fulfillment of the requirement for the
gradation in the subject of Business Design & Innovation. The results embodied in
this research have not been submitted to any other university, institute or college
for the award of any degree.

Place: Bengaluru Name: Suryansh Tiwari

Date of Submission:
 Acknowledgement

I would like to express my sincere gratitude to Prof. Prakash Unakal for his
guidance and constant supervision & for giving me an opportunity to work for this
project.

It would not have been possible without the kind support and help of many
individuals. I would like to extend my sincere thanks to all of them.

I would also like to thank and appreciate our colleague in developing the project
and people who have willingly helped me out with their abilities.
 TABLE OF CONTENTS

 Chapter 1: Introduction

 Chapter 2: Consumer Demographics and Consumer Needs

 Chapter 3: Business Model and Brand Canvas

 Chapter 4: Data Presentation and Analysis

 Chapter 5: Findings of Primary and Secondary Research.

 Chapter 6: Pain Points and Possible Solution

 CHAPTER 1: INTRODUCTION

TOPIC OF RESEARCH:

Product based research study for Royal Enfield Classic 350.

RESEARCH OBJECTIVES:

1. To analyze Business, Service and Ecosystem to identify improvement in the

service as well business opportunity.

2. To understand and analyze service name.

3. To understand the Service Development Strategy, Business Strategy of the

parent company.
4. To find Opportunity Gap and propose solution.

The objective of new service development is to create a service that will

 fix a problem,
 address a need,
 make a task easier,
 And/or improve someone’s life.

When combined with good design and good marketing, then the service will be
well received in the market.
About Company (Royal Enfield)

Royal Enfield is an Indian multinational motorcycle manufacturing company that

claims to be "the oldest global motorcycle brand in continuous production". Royal
Enfield motorcycles are produced in factories in Chennai, India. It is now a
subsidiary of Eicher Motors Limited, an Indian automaker, and was licensed from
Royal Enfield by the indigenous Indian Madras Motors. The Royal Enfield Bullet,
Classic 350, Meteor 350, Classic 500, Interceptor 650, Continental, and other
classic-looking motorcycles are among the company's offerings. Royal Enfield also
produces off-roading and adventure bikes, such as the Royal Enfield Himalayan.
Single-cylinder and twin-cylinder engines are available on their motorcycles.

India’s Market

15% of all mankind, in other words, one-seventh, live in the magical land of India.
However, it is not easy to find the universality that corresponds to one-seventh of
human culture. Culture of India is just unfamiliar and mystical.
India comprised 28 states and 7 union territories with different languages,
costumes, religious observances, arts and food. Diversity also existed within each
single region according to social rank.
Such elements of diversity could be discovered on the streets and roads of India. It
was difficult to find actual streets for pedestrians in India. People took part in
various activities unconnected with the original purpose of streets such as sleeping,
selling goods, parking bicycles, drinking tea or listening to cricket games over the
radio. Roads in India were also chaotic. Traffic was a day long frenzy of buses,
trucks, cars, auto-rickshaws, cycle-rickshaws, bicycles, motorcycles, cow wagons,
cows, dogs, camels, elephants, and fearless pedestrians.
Owing to a backward infrastructure and decline in traffic safety awareness, India
displayed the ultimate in road chaos. Traffic lanes and signals were rarely seen.
Furthermore, citizens went their ways even with cars coming at them. When cars
entered roads that were under repair or construction, they were sometimes tilted 20
degrees.
The abrupt appearance of people, dogs and cows crossing the streets were very
common events in India. Moreover, cars traveling on opposite sides of the streets
and cars making abrupt U-turns were all left to fate. Thus, honking the horn was
the only method of alerting others. No one knew where or when
Emergencies occur. India was the world’s only leading nation with no definite
policies for reducing traffic accidents. Despite the urgent need for safety
awareness, a stable infrastructure, and strong traffic regulations, there was little
display of these items.

The infinite potential of India was hidden behind China. However, forecasts
showed India will overtake China’s population by 2030 and its GDP will become
2nd in the world. At present, half of India’s population was under 25 years of age,
and the population increase was potentially 1.5%. Moreover, India had the best
location for distributing to Europe and Africa. In addition, it was rich in natural
gas. The government was actively striving for energy diversification. Also, active
policies for attracting investments were being conducted by the central and state
governments to create a positive investment environment. Above all, the strength
of India was that English was used as a common language. Since English was used
in all parts of India, business was possible with many nations. With its infinite
growth potential, the entire world had its eyes on the Indian market. It was difficult
to deny that all these factors turned the chaotic market of India into an enticing
place of business.
 Chapter 2: Consumer Needs and Demographics

Bike companies work extremely hard to establish their individual brand images
and build up their personalities in the minds of consumers. To target these various
audiences, Bike manufacturers market their products in specific ways, catering to
the emotions, desires, and needs of the typical consumer. Thus, figuring out on
how to draw out these emotions and meet these desires requires marketers to
consider their audiences from a psychological perspective. They need to
understand what their customers want in a Bike. They also need to understand that
do drivers place greater importance on safety, or would they rather drive Bikes that
give them rushes of excitement when they hear the engine roar. Therefore, by
exploring the hierarchy of consumer needs and taking into account specific
psychological needs, Bike companies create effective marketing campaigns that
help drive sales.

Following are the needs that helps the company to understand the different needs
that a potential customer has before purchasing a Bike.

1. Subsistence – Users have such daily requirement for their personal and
work needs that they cannot live without the Bike.

2. Safety & Security – The users want a strong build Bike which can keep
them and their family safe during the accident.

3. Leisure – The users often need to spend the weekend or vacation driving
their Bike.

4. Identity (Status) – User needs the Bike to distinguish them very easily from
others.

5. Business – Users purchase this Bike to generate profits.

6. Freedom – The buyers have to need to go out anytime they want.

7. Aspiration – Buyers have the need to purchase this RE Bike.

Stakeholder Mapping

A business's success depends on the actions of numerous stakeholders. This is

because stakeholders affect the business so greatly; the business has an ethical
responsibility to consider how it affects them. A mutually beneficial relationship
with all stakeholders will generate goodwill toward a business, which will lead to
lasting success.

Following Stakeholder Mapping will give a brief information about the various
stakeholders playing a critical role in the Royal Enfield Company
Following are the most Important Stakeholders in the Royal Enfield Company.

 Customers – Customers are their greatest assets and their relationship with
them represents one the focal points of every activity conducted by The
Royal Enfield Company. This holds true for every activity undertaken by
them – From initial market research to product development, Process of
manufacturing to the after sales experience.

 Employees – Employees are primary internal stakeholders. Employees have

significant financial and time investments in the organization, and play a
defining role in the strategy, tactics, and operations the organization Bikeries
out. Well run organizations take into account employee opinions, concerns,
and values in shaping the strategy, vision, and mission of the firm.

 Dealers – Royal Enfield uses a network of franchised dealers to sell and

service their products. These dealers perform the initial sales process as well
as deliver after-sales services. Their quality of sales process and post sales
service can impact sales, repeat sales and reputation of the company.

 Suppliers – Suppliers and other strategic alliances are interdependent, where

the success of one will impact the success of another. As a result, suppliers
are closely related to organizations as key external stakeholders. Timely
payments, shipments, communication, and operational processes are key to
maintaining a strong relationship with this stakeholder group.
Buyer Persona
The Bike buyers of today are empowered with a ton of knowledge, and almost all
of them have done an extensive amount of research for their price range. Most of
the time, they know what they want before they even set foot in the showrooms.
This means that dealerships need to understand their customers more, not just think
of them as one of many Bike loan leads. The company needs to know who they
are, how to reach this person, what their needs are, and all about their backgrounds.
Buyer personas are how businesses describe their ideal customers to target and to
market to. It can be important to understand what kinds of consumers the company
is looking for.

Following are some typical buyer persona of Royal Enfield Classic 350 Bike.

Deepanshu

IT Engineer

23

Male
2.5-4

Graduation

City
Unmarried
Empathy Map
An empathy map is a collaborative tool teams can use to gain a deeper insight into
their customers. Much like a user persona, an empathy map can represent a group
of users, such as a customer segment. Empathy maps can be used whenever the
company finds a need to immerse themselves in a user’s environment. They can be
helpful, for example,

 Diving into the customer segments of a business model canvas.

 Elaborating on user personas.

 Capturing behaviors when interviewing a customer.

 Building out the “user” in a user story.

Thus, an Empathy Map externalizes knowledge about users in order to create a

shared understanding of user needs and to help in decision making.
Following is the Empathy Map for Royal Enfield Classic 350.

Customer Journey Map

Customer Journey Mapping always helped brands to enhance their customer

service. It, in turn, trigger a positive customer experience. The journey starts with
the prospective customers checking out their favorite brand’s website. It helps
them to gain product information like the specifications, images, price, etc.
Following are the elements which were included while charting out a Customer
Journey Mapping for Royal Enfield Classic 350.
The first element is the customer process. It is the set of processes that a customer
undertakes in their purchase journey. The second element is the internal process.
Businesses must ensure certain infrastructural support functions are in place to
serve the customers better.
Next is the mapping of customer experience across each stage of the customer
journey. The company needs to conduct periodic customer satisfaction survey for
the brand. The customer research survey will provide data for accurate mapping.
Now the last is the improvements and key learning from the customer journey
mapping exercise. Learning from the customer journey mapping can be used to
devise efficient customer experience programs for the future. Identifying gaps in
the buying cycle and delivering positive customer engagement helps to build a
loyal customer base.
Customer Demographics

Customer demographics are categories of consumer populations that are relevant to

a business' purposes, such as marketing and product design. The term also refers to
the study of such categories in a business context. Customers can be categorized
according to an almost endless number of variables. Some of the most common
customer demographics for business purposes include age, gender, geographical
location, education level, marital status, household income, occupation and
hobbies.
Demographics are one of the key elements of customer segmentation. Targeting
specific groups of customers enables more efficient allocation of marketing
resources and increases the opportunities for cross- and up-selling. The practice
also makes more personalized interaction possible, improving customer service
and fostering customer loyalty and retention. More appropriately targeted
marketing efforts are typically more relevant to the customer’s needs and, as a
result, more welcome.
From another perspective, a business might study customer demographics to
understand the makeup of something, for example, exploring the characteristics of
the population in a particular neighborhood or the audience of a website. That
approach is used in creating demographic profiles of individual customers as well
as groups.

Demographic Profile of the Respondents

The RE Bike segment is one of the fastest growing segment. Each improvement in
a Bike has a strategic meaning which makes more competition in the strategic
management. It is thus important to analyze the demographic characteristics of the
consumers who make the purchase decision for a premium Bike thus making the
consumer decision-making easier. To be a strong retailer it is absolutely inevitable
to study the demographic profile of the intended prospects of the RE Bikes.
The growing involvement of the buyers in the selection of a particular brand of
Bike have also made the researcher to initiate a study on the premium Bike
industry with special reference to the age, qualification, marital status etc. of the
Bike owners.
This study is very relevant for manufacturers and marketers because information
and knowledge of the buyers will enable them to evolve suitable marketing
strategies. During the research, demographic profile of the respondents, as an
element influencing the consumer behavior has been identified while taking
decisions by the consumers relating to brands of Bikes.
This section of the research paper describes the demographic grouping of the
respondents. This typically involves age, income class, gender, educational level,
marital status etc.

Profile of Respondents – Age wise

Age Percentage

Below 24 Years 2%

25 Years to 40 Years 55%

40 Years to 50 Years 31%

Above 50 Years 12%

Total 100%
 Profile of Respondents - Age wise

[12] 2%
Below 24 Years

25 Years to 40 Years
[31]
[55]

40 Years to 50 Years

Above 50 Years

The Table shows the number of maximum respondents were between the age
group of 25 to 40 years i.e. 55%, followed by the age group of 40-50 years which
is 31%. Respondents above the age 50 Years who own a RE Classic 350 are 12%
and rest 2% respondents are below the age of 24 Years. Hence it was found that
majority of the respondents are in the age group of 25-40 years who are strong
consumers of RE Classic 350.
 Profile of Respondents – Gender wise

Gender Percentage

Male 83%

Female 17%

Total 100%

Profile of Respondents - Gender Wise

Female; 17.0%

Male; 83.0%

The percentage of male consumers is 83% as compared to 17% of female

consumers. This proves that males are more buyers of RE Classic 350. But this
trend is slowly changing and this is because Dealerships are stating that they are
receiving more and more enquiries from the Female gender about specification and
features of the Bike. They are also receiving more test drive calls from the Female
counterpart.
 Chapter 3: Business Model and Brand Canvas

Key Resources

• Human Resource – RE Motor Company is employing more than 1,20,000

Employees worldwide. RE Motor is headquartered in Seoul, India (Republic of)
and has 93 office locations across 24 countries. Royal Enfield India has more than
10,000 talented Employees.

• Technological Capital – Focus is on R&D to leverage technology to increase

value for customers. The local arm of Indian RE Motor Co. is planning to make
India a global hub for developing small Bikes. The automaker currently has about
1,000 employees in India for research and development (R&D). Bulk of the
workforce is based at RE’s R&D center in Hyderabad and a handful at its
company’s manufacturing facility in Chennai to coordinate between the two sites.
The Parent Company had announced the introduction of virtual reality (VR) design
evaluation system at the Indian R&D center.

• Financial Capital – Indian RE Motor Co reported a 57% jump in fourth-quarter

profit backed by demand for high-margin sports-utility vehicles and its premium
Bikes. Royal Enfield is among the world's top 10 automakers, reported a net profit
of $1.18 billion. Whereas, Royal Enfield India has the largest integrated
manufacturing facility in India to churn out 13 different models spanning over 350
variants for global markets. Thus, Royal Enfield India has a Turnover of Rs.
44,000 Crores.

• Intellectual Resources – The six-speed automatic transmission for front wheel

drivetrain developed by Royal Enfield is one of the most renown IP by RE and it
had won the prestigious Presidential award in India. Now, Royal Enfield is
focusing its input at developing technologies in green energy and becoming a
leader in electrification.

The right side of the canvas focuses on the customer side which includes Customer
Segments, Customer Relationships, etc.

Customer Segments
 Customer segmentation is the process of dividing customers into groups
based on common characteristics so companies can market to each group
effectively and appropriately. Following are the customer segments for RE
Classic 350.
 Primarily Middle Class and Upper Middle Class Families looking for “Value
for Money” Bike in the Premium Bike Segment for Everyday and Outstation
purposes.
 Secondary customers are College students and Youth of country who need
Style and Speed.
 Corporate Managers and Employees for ease of Transport.
 Entrepreneurs and Small Business Owners.
 Customers looking for an affordable vehicle with great Fuel Efficiency.
 Customers looking for Stylish vehicles with Good Performance.
 Customers concerned with Automobile Safety.

Brand Strategy
Royal Enfield India Limited has more than 475 dealers and more than 1,300
service points throughout India. Royal Enfield India Limited operates its own
dealerships known as RE Motor Plazas in large metros across India. HMIL is on
the second largest sales and service network in India after Honda.
Indian-arm of the Indian Bike maker, RE Motor India has also grown by over 5
percent in India and overall managed to sell over 5.36 lakh Bikes and grabbing a
market share of around 20 percent in India. The launch of RE Classic 500and RE
Classic 350 along with all-new Verna backed by strong sales of RE has seen its
manufacturing units in Chennai running full houses to cope up with the increasing
demand.
RE marketing strategy is based on differentiated marketing. The primary consumer
target is consisting of middle to upper-income professionals, who wants value for
their money and comfortable ride in city conditions. The secondary consumer
target group is college students who always need style and speed. The primary
business target is of midsized to large sized corporates that always want to help
their managers and employees by providing them a Bike with ease of transport.
The secondary business target is for entrepreneurs and small business owners who
want to provide discounts to managers buying a new Bike.
They basically communicate the value of product to the customers for that this
department is divided in three teams ATL (Above the Line), BTL (Below The
Line) and LOYALTY. In ATL they are covering large Geographical area by
advertising from Radio, TV and National newspapers and in BTL they are
covering particular targeted area by organizing events. In Loyalty they are
distributing Bike and coupons to customer first to check loyal customer and then
start analyze about loyal customer’s next need and offer it to customer on discount.
It is one of innovative department and generating new idea.

Awareness Strategy

 Road shows
The company plans for the stage road shows and to display vehicles in the
pavilions during various college festivals and exhibition. This will bring appeal to
youngsters more and attracts them towards the Bikes of RE.

 Television advertisements
Advertisement to promote and market the product and market the products will be
shown on the leading television channel. Major music and sports channel will
promote and they will promote and they will reach out to the youth will be
promoted through Star, Zee, Sony and Doordarshan etc. as it has more viewers, to
promote a product like Creta.

 Radio
Radio is the medium with the widest coverage. Studies have recently shown high
levels of exposure to radio broadcasting both within urban and rural areas whether
or not listener actually own a set. So, radio announcements on various, play station
like FM will be made and advertisement will be announced on the radio about the
products features and price, qualities etc.

 Print Ads
Daily advertisement in leading newspaper and magazines will be used to promote
the products. Leaflets at the initial stage will be distributed at malls, college areas
and various other location. Product display was and is conducted in various
shopping malls which have highest football.

 Auto Magazines (Monthly) & Auto Expo Yearly

The Company would advertise on auto magazine like Auto Bikes, motoring etc.
where entire information on product and newer features would be explained. The
cover page or back page advertisement would be used for Product Communication.

 Celebrity Endorsements
This entirely depends on the company’s policy whether they would like to spend a
fixed amount (which may be depending upon the personality)

 Incentives / Penalty on meeting a sales target

The company would work with dealers with the policy of Bikerot and stick which
may involve incentives like a foreign tour package, gifts and monetary incentives
such as increased margin for meeting a sales target or working with dealers on
contractual basis rather than a permanent basis if they are not able to reach sales
over a period of time.

 Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to make people
aware about the companies past performance and products features their
affordability and usage, vast distribution network. Road shows will be conducted
where free trails of the Bikes would be given.

 Banners, neon signs

Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres
and shops to promote the brand Bikes.

 Booklets and pamphlets

Booklets will be in Bike showrooms, retail outlets, etc. for the customer who wants
to read. These booklets will provide the perfect information about the company the
products offered which suits the customers need accordingly.

 Rural Marketing
Royal Enfield India has introduced with a new marketing initiative – ‘Shaan ki
Sawari Bullet’ to tap the India rural Bike market. The company has rolled out
special schemes for government employees in rural areas and members of gram
panchayats on the purchase of the New bike. RE Motor is keen to expand its
market to rural areas with settings up 300 new rural sale outlets, all this expansion
is in progress for the launch of the cheapest Bike for the RE. Currently RE is
balancing its standard with 475 dealership outlets overall within cities and this new
expansion strategy could make the rural outlet number network of India extend to
1,000.
Royal Enfield had announced to generate employment facilities for about 2,000
sales executives at these rural outlets. According to RE Motors, the Bike markets
which are present in areas outside the superior 40 cities are marked under rural
areas. The company has already placed 700 new outlets at rural areas with 300,
more coming in way. These outlets are just model made with small investments &
not the typical outlets made with brick and stone.
Their basic plan is to feel rural folks with Bike demonstration, test drives in
addition with basic little requirements. These outlets are just model made with
small investments & not the typical outlets made with brick and stone.

Delivery Strategy
RE Motor Company was established in December 1967 as a part of the RE Group,
one of the largest business groups in India. RE started its passenger-Bike
production in 1968 by assembling imported knockdowns (parts and subassemblies)
from Ford Motor Company. By 1975, RE became the first Indian auto maker with
integrated manufacturing facilities, and India became the 16th country in the world
to pro
RE Motor now has production facilities in India and in 13 other countries with a
total capacity of over 1.8 million Bikes annually, and it plans to open other
manufacturing facilities in India and in other countries. The company produced
around 1.3 million units per year for the last three years, making it one of the top
10 automobile companies in the world in terms of volume. The upstream portion of
RE's supply chain is very complex. RE has ap proximately 400 first-tier suppliers,
2,500 second-tier suppliers, and an unknown number of third- or higher-tier
suppliers. Although domestic sources in India account for the vast majority of the
suppliers, RE also relies on foreign suppliers for some material and parts.
RE's domestic distribution is handled by 700 sales offices owned by RE Motor and
by 200 independent dealers. These sales offices and dealers have demonstration
models but Biker no other inventory. Thus, customer orders in India are filled by
delivery from inventory held at the plant or distribution centres, or by scheduled
production. By holding limited finished-goods inventory at the plants or
distribution centres, instead of at specific sales offices, RE maintains the greatest
flexibility to respond quickly to specific customer demands with low overall costs.
RE tries to make deliveries in seven days or less for domestic orders if the ordered
model is in a popular color and has frequently ordered options. If the color and
options requested are not frequently ordered ones, RE promises delivery within 15
days. The company also exports its automobiles to over 80 countries throughout
the world. RE's export market accounts for approximately 45 percent of total sales.
For export vehicles, the delivery lead time is 45 days.
One goal of RE's sales and distribution system is to minimize finished goods
inventory while maintaining competitive delivery lead times. RE tries to keep no
more than seven days’ worth of finished vehicles on hand. This inventory goal is
very aggressive even compared to Japanese automotive companies. Typically, RE
tries to minimize its finished goods inventory by delivering vehicles directly to
customers as soon as they are completed. Hence, it must Bike co-ordinate and
monitor customer-order promises, production schedules, and supplier deliveries.

After Sales Strategy

India has long been considered the world’s most price-sensitive market, where one
in four potential Bike buyers rejects a Bike because of its price. Owners today
place a significantly high premium on aftersales experience and customer
satisfaction. It is evident that these factors, in turn, also influence their overall
perceptions of a brand, and the decision to buy. On an average, people replace their
old Bikes with a new one in every five years. While the Bike may have been
bought based on its product proposition, a poor aftersales experience can bias a
consumer against the brand.
With a high degree of standardization across Bike brands, especially at a base
quality level and features, aftersales support can be a credible differentiator
between brands. While considering their next Bike purchase, the Bike owners’
experience with dealer service can make or break their decision to repurchase from
the same manufacturer or even the dealer.
Creating demand for meaningful and profitable aftersales is a demanding task. he
dealers today are going that extra mile to deliver high quality aftersales, given its
growing importance to driving sales. The high degree of competitiveness between
dealers has introduced India to a whole new set of offerings that deliver memorable
and satisfying consumer experiences.

For this, RE has announced a Bike maintenance program called ‘Shield of Trust’
for its patrons. The nationwide plan aims at lowering the maintenance cost during
the ownership period of the vehicle. Customers can opt for the package during
their new Bike purchase or at any time before availing of the first free service. This
maintenance service covers the replacement of 14 wear and tear parts such as
brakes, clutch, wipers, bulbs, hoses belts, and more, across nine models in the
brand’s portfolio, for a period of five years. RE vehicle owners can utilize the
service at all RE dealerships across the country. Other service facilities offered by
the Bike maker include online service booking, vehicle status update, pick and
drop from home/office, and an option to pay digitally. Presently, RE has a strong
service network of 1,298 workshops in India. 
Following are some key highlights of the ‘Shield of Trust’ Package.
 5 different options up to: 5yr/60K, 4yr/60K, 4yr/45K, 3yr/45K & 2yr/40K.
 14 Major running repair parts covered like Brakes, Clutch, Wiper, Belts,
Hoses, etc.
 There are many Benefits of “RE Shield of Trust” for Customers.
 Covers major running repair parts like brake, clutch, wipers, belts, etc.
 Customer can take benefit at any RE Dealership across India.
 Peace of mind up to 5 years at very reasonable price.
Thus, to ensure peace of mind of our valuable customers, RE has launched
Running Repair Service package “RE Shield of Trust”. Customers can purchase
the package along with New Bike purchase or any time before 1st Free Service.
 Chapter 4: Research Methodology and Data Analysis

Research Methodology
This report throws light on understanding the Business Model of RE and
Identifying Pain points faced by the users of its one of the champion product – RE
Classic 350. For completion of this report, a survey was conducted and for
fulfillment of questionnaire, a sample size of 45 users of RE Classic 350 were
selected. Apart from conducting this survey, another research method was Bikeried
out for gathering Primary Data. This method is called interview method. In this
method, I Biker out interview of few customers and sales executive person of the
RE Dealership.

Descriptive Research
Descriptive Research is the process of finding solutions for a problem after a tough
study and analysis of situational factors. It tries to solve a complex and
complicated problems through uses of various tools and techniques. These tools
and techniques try to bring out a logical accurate and scientific solution for a given
problem.

Research Design
Research Design is the arrangement of conditions for collections and analysis of
data in a manner that aims to combine relevance to the research purpose economy
in procedure in fact the research design is the conceptual structure within which
research is conducted. It constitutes the blue print for the collection and analysis of
data. The research design adapted in the study was descriptive study.
Sources of Data:

1) Primary Data
The data collected by the researcher himself for finding the solution of a
particular problem or situation, is known as primary data. This type of data
is characterized by its originality as it is freshly collected. For this study, the
researcher conducted telephonic and video interviews of the users who
currently own a RE Classic 350 Bike and also interviewed a sales executive
person from the Modify RE Dealership. The Data collected from the
interview was very critical for this study. Another technique adopted for
gathering primary data was conducting a survey by preparing a
questionnaire as a data collection instrument because it will help me to ask
questions to the customer regarding my research, through which I can easily
comprehend and analyze the data.

2) Secondary Data
Secondary data is the one which is collected by someone else and already
used in some or the other form. Here, the Secondary data was collected from
the Internet which was used for the study and analysis. The research includes
Market overview, Company profile, Buyer Persona, Different Stakeholders
of the company, Brand Strategy, Marketing Strategies, Delivery and After
Sales Strategies and much more. It included overall data and the strategies
made by Royal Enfield for the Indian market.
 Customer Service Index Ranking
Mahindra 738

Bajaj 738

Hero 742

Industry Average 748

Honda 750

Royal Enfield 756

Yahama 758

Suzuki 764

TVS 777

710 720 730 740 750 760 770 780

Factors Comprising Overall Satis-

faction
Service Advisor Service Quality
21% 20%

Service Initiation
Service Facility 18%
19%

Vehicle Pick Up
22%
Respondents Reason for Buying a Royal Enfield Classic 350

Riding Comfort

53.00%

38.00%

6.00%
3.00%
1.00%

1- Lowest 2 3 4 5- Highest
Respondents Reason for Buying a Royal Enfield Classic 350

Feeling of Pride
63.00%

27.00%

9.00%

2.00%

1- Lowest 3 4 5- Highest
Respondents Reason for Buying a Royal Enfield Classic 350

Masculinity/Strength
42%

38%

10%
8%

2%

1- Lowest 2 3 4 5- Highest
 Respondents Reason for Buying a Royal Enfield Classic 350

Emotional Quotient

44%

36%

13%

4%
3%

1- Lowest 2 3 4 5- Highest
 How long is the Respondent using the bike

34%

29%

14% 14%

9%

1-3 Months 4-6 Months 7-12 Months 12-24 Months More than 2 Years
 The Dealer’s Promise about the Mileage of the bike

Above 35 26%
kms/litre

26-35 kms/litre 49%

16-25 kms/litre 23%

5-15 kms/litre 3%
 The Actual Mileage Respondents are getting

Above 35 17%
kms/litre

26-35 kms/litre 34%

16-25 kms/litre 40%

5-15 kms/litre 9%
 Are the Respondents satisfied with the Mileage

46%

24%
22%

9%

Highly Satisfied Satisfied Neutral Dissatisfied

 Chapter 5: Findings of Primary and Secondary Research.

Findings:

 Maximum respondents who are currently using RE Classic 350 Bike were
between the age group of 25 to 40 years that was around 55% and it was
followed by the age group of 40-50 years which was slightly more than
30%. Hence it was found that majority of the respondents are in the age
group of 25-40 years who are strong consumers of RE Classic 350.
 The percentage of male consumers is 83% as compared to 17% of female
consumers. This shows that males are more buyers of RE Classic 350. But
after interviewing the spokesperson of RE Dealership it came to the light
that this trend is slowly changing as they are receiving more and more
enquiries from the Female gender about specification and features of the
Bike and test drive calls.
 RE is ranked 4nd in the country in terms of Market Share with around 20% of
the entire market.
 Style is one of the most important factor which is taken into the
consideration by the potential buyers of Bike while purchasing the vehicle. It
is followed by Fuel Efficiency and Safety features in the Bike. Style is one
of the prime reason for the sales of RE Classic 350.
 The respondents believe that RE Classic 350 is comparatively expensive
when compared to its competitors in the same Segment of Premium Bikes.
Respondents rate it as Moderate Expensive.
 Mileage provided by the RE Classic 350 is average if compared to the
competitors in the market and majority of the respondents are merely
satisfied with the current mileage.
 Price of the Spare Parts available at the RE Service Centers are moderate to
highly expensive and also respondents feel that spare parts are somewhat
always available.
  Majority of the respondents are happy with the vehicle performance and are
satisfied with the comfort provided by the vehicle.

 After Sales Service provided by the Royal Enfield is at satisfactory level for
most of the users and their complaint department is also working promptly
to deal with the customer clients to provide them the best experience.
 Majority of users want improvement in the areas like Engine performance,
Fuel Efficiency, Mileage of the Bike and the Seat space in the Bike.
 Being a Premium Bike in Segment, many users want to have a Mobile
Application which will provide Connectivity to the Bike.

SWOT ANAYLSIS
STRENGTHS WEAKNESSES
1. Size and scale of parent company 1. Weight of the motor cycle can be an
2. Effective Advertising Capability issue for few customers.
3. High emphasis on R & D
4. Established brand name in the 2. Mileage of high cc bikes is an issue
cruiser market
5. Established market distribution
channel
6. Exports motorcycles to 31 countries
like the USA, Japan, UAE, Korea,
Bahrain, UK, France, German and
many other countries

OPPORTUNITIES THREATS
1.Two-wheeler segment is one of the 1. Strong competition from Indian as
most growing industries well as international brands

2.Export of bikes is limited i.e. 2. Dependence on government policies

untapped international markets and rising fuel prices

3. Better public transport will affect

two-wheeler sales
Strengths:

1) Strong Brand Name: Royal Enfield has established a strong brand presence
in the market and has gained credibility from its customers. Royal Enfield
has developed a cult following and is sought after by many.

2) High-Quality Standards: One of the key factors for Royal Enfield's solid
brand image is its high-quality standards. Royal Enfield places a premium
on delivering the highest level of service to its customers.

3) Strong Research and Development: Royal Enfield has an in-house R&D

Centre that is responsible for furthering the company's product range while
also ensuring that customer confidence is retained. Royal Enfield recently
invested Rs. 600 crores in two additional R&D facilities, one in India and
the other in the United Kingdom.

4) Strong Growth: Royal Enfield has developed at a rate of more than 50% in
the last five years around the world. Such strong growth boosts sales and
earnings, which can be used to improve and expand the company's product
range.

5) Expanding Global Market: Royal Enfield bikes are reportedly exported to

over 30 countries around the world, and due to increased demand, the
company has invested heavily in setting up manufacturing facilities in the
United Kingdom.
 6) Support from Eicher group: Royal Enfield was founded in 1994 when
Enfield India and the Eicher Group merged to form Royal Enfield. Since
then, Eicher, as one of the world's leading car suppliers, has backed Royal
Enfield and has been a key factor in the company's global growth.

Weakness:

1) Expensive: Royal Enfield caters to a select group of motorcycle enthusiasts

willing to pay a premium for the brand. However, it overlooks a sizable
demand that is willing to pay a low price for a Royal Enfield.
2) Low Mileage: Royal Enfield manufactures large volume cylinder bikes
(high CC) with the potential to burn more air and fuel, resulting in lower
mileage than low CC bikes.
3)  Poor customer services – Another area to look for, customer service is not
as good as it should be. The attitude of customer care executives speaks a lot
about the kind of service they want to provide.

Opportunities:
 1) Higher disposable incomes: In countries such as India, the disposable
income of the middle class has been increasing. As a result, those who
couldn't afford a Royal Enfield a few years ago are now able to do so. This
is one of the key reasons for Royal Enfield's increasing sales.
2) Indian market is huge – They have a huge market like India at their
disposal where multiple segments are available to be targeted. They can
easily tap this opportunity to provide customized services that services that
match a different set of customers.
3) Growing Industry: The two-wheeler market is expanding internationally,
giving the company the opportunity to expand its consumer base and
revenue.
4) Expanding Globally: Royal Enfield needs to extend its export markets to
more European, African, and Asian countries. In these markets, demand for
such motorcycles is growing, and Royal Enfield can capitalize on this trend.

Threats:

1) Strong Competition: In the cruiser market, Royal Enfield faces stiff

competition from a number of motorcycle manufacturers around the world.
It also competes in the industry with high-utility bikes. Market share is
reduced as a result of increased competition.

2) A rise in fuel prices could lead to a drop in sales: As previously

mentioned, Royal Enfield bikes have low mileage, so any rise in fuel prices
would have an effect on sales.

Royal Enfield PESTLE Analysis:

Political Factors:
The political factors in the Royal Enfield PESTLE Analysis can be explained as
follows:

Royal Enfield Motorcycle Company has a strong presence across the world.
Companies are very prone to the policy decisions of the government. It could
bring opportunity to grow or could be very dangerous even to the extent of
closure of closure of the company. In the recent ruling, the government has
decided to skip BS5 engines altogether and directly move from BS4 engines to BS6
from 2020. BS norms are based on EURO standards and since we are lagging
behind, the government has decided to move BS6 directly. Now the problem is
BS6 is technological advanced and a lot of money is required to invest in
developing the BS6 engines which will increase the cost of the bike and Royal
Enfield bike which is already a premium bike will cost more.

Economic Factors:
Below are the economic factors in the PESTLE Analysis of Royal Enfield:
The country’s GDP, its per capita income, inflation rate and per capita income of
the country in which the company operates significantly affect its business.

Royal Enfield is based in India. The current boom in the economy of the country
has provided great opportunity for Enfield to increase its customer base in the
country.

The economic boom increased the per capita income of Indians rapidly and since
the Enfield is in semi premium segment, the increase in middle class income has
significantly increased the sale of the company’s bike. The Classic 500 cc bike it
launched has become a huge success in the market so much so that one will get
the bike 9 months after ordering it. Royal Enfield Company is planning to launch
its bike in many other countries but before it needs to do thorough research of
the economic condition of the countries in which it is planning to launch its bike.

Social Factors:
Following are the social factors impacting Royal Enfield PESTLE Analysis:
Brand name is something that resonates in the mind of the people for the long
time. In India, youth begins to purchase things of that brand which shows high
status symbol. That’s where Royal Enfield has established itself in the market. Its
brand value is so much so that booking period is 9 months means people will get
the bike 9 months after booking the bike. Royal Enfield has become the status
symbol of people. Its heaviness and the heavy sound make it more attractive to
the people. The brand has initiated the biking campaign to Ladakh which became
so popular that now travelling to Ladakh on bike means travelling on Enfield. This
campaign created in people the urge to ride to long distances either alone or with
friends on Enfield. It is now launching the Rider mania which is the largest
gathering of the Royal Enfield enthusiasts in the world.

Technological Factors:
The technological factors in the PESTLE Analysis of Royal Enfield are mentioned
below:
Royal Enfield spends a lot of money on research and development. It has
developed the iconic the thud noise engine for its bikes which became instantly
popular among the bikers. It is regularly developing it engine making it more fuel
efficient while keeping the noise and feel of the bike intact at the same time.
Royal Enfield is very social media active and always connects with its riders and
ask their opinions regarding product development and solving their grievance
which the riders post online.

Legal Factors:
Following are the legal factors in the Royal Enfield PESTLE Analysis:
It is very important for a company to abide by the rules and regulations set by the
government and the judiciary of a country. Royal Enfield many a times come into
the lime light and not always for a good reason. Many times, the companies got the
complaint of faulty brakes and clutch, blurred engine noise, defect of the magnetic
coil etc. and people became very dissatisfied when company does not resolve the
problem of the people. Flash electronics, a new Delhi based automobile component
manufacturer, has filed a law suit against the Royal Enfield for the patent
infringement of a component known as regulator-rectifier.

Environmental Factors:
In the Royal Enfield PESTLE Analysis, the environmental elements affecting its
business are as below:
The growing concern of the environmentalists regarding the increasing use of
petrol and diesel which are the major contributor to the environment pollution is
something that no company now can neglect. The Royal Enfield bikes are heavy
and consume lot of fuel and are not fuel efficient. Royal Enfield is making efforts
to make its bike more fuel efficient.

Chapter 6: Pain Points and Solutions

PROBLEM DESCRIPTION

This Project Focuses mainly on the challenges faced by the consumer of the RE
Classic 350 Bike in terms of Product usage. The RE Classic 350 Bike is a Premium
Bike Vehicle in the Segment. Vehicles in this Segment are loaded with various and
distinct Features that help a Bike Brand to make its way to the Top. In this race of
gaining market share by attracting tech savvy customer, it is critical to understand
the needs and the problems faced by them in order to stay at the Top.

The Problems experienced by the users of RE Classic 350 is that they are facing
Hard Clutch issues or difficulty in shifting gears, especially into gear 1. Another
problem is that the vehicle does not have enough legroom space which makes long
distance rides very unconformable. Beside this, Headroom is not high enough for a
bumpy ride like on a speed breaker and thus there is chance of head hitting the
roof. Compared to Honda, Mileage offered by RE is also less which should be
improved and spare parts offered for repair by the company are moderately
expensive for the users.

Focusing attention towards all these problems and dealing with them to improve
user experience will help RE in winning the race and gaining the Number 1 spot in
Premium Bike Segment Bikes.

RE Classic 350 being a Premium Bike in A-2 Segment, many Classic 350 users
want to have a Mobile Application which will provide Connectivity to the Bike.
This will help the users to easily operate their vehicles from remote distances, it
will provide critical information about the health of the vehicle and it can also
provide timely alerts to users.

IDEA GENERATION

India is the fifth-largest market for passenger vehicles. With its deep-rooted
socialism and a high middle-class population, it has one of the most conservative
markets where pricing of vehicles and after-sales economics drive purchases.
Social class, prestige, vehicle robustness and mileage: These are some of the other
parameters on which people purchase Bikes.
For Indian consumers, one of the most important factor in their decision to
purchase a Bike is Fuel Efficiency of the vehicle.
There are a few ways in which the RE company can increase the fuel efficiency of
its Bikes. For increasing the fuel efficiency, they need to adopt new technologies
and new processes in upgradation to the current one. Following are some the ways
in which the RE can improve the Fuel efficiency along with some other benefits
which will enhance the performance of the vehicle.

 Double Clutch Transmission – Dual clutch transmissions are a bit of a

hybrid of a manual and automatic transmission. It houses two separate
clutches, one for odd and one for even gear sets, eliminating the need for a
torque converter. To ensure smooth shifting and optimal efficiency, DCTs
need sophisticated controllers capable of preselecting the next gear and
engaging the appropriate clutch precisely when required. When you compare
a dual-clutch transmission with a standard automatic transmission, there is
approximately 6% improved efficiency of both fuel and acceleration.

 Powder Metallurgy – Powder Metallurgy components are utilized in

automobiles for multiple reasons. Market Demand requires more than just a
durable component. Powder Metallurgy is light weight in nature and
durable. Powder metal parts are less dense than solid metals. Spaces left
between the sintered metal grains reduce density, so a powder metal
component will inherently weigh less than an equivalent cast, forged, or
machined part. Soft Magnetic Composite (SMCs) can greatly improve
performance of the vehicle when the powder is premixed with SMCs to
consumer less energy, run faster, more power.

KERS (Kinetic Energy Recovery System) – The Kinetic Energy Recovery

Systems for HGVs can be fitted to existing vehicles to reduce fuel consumption
and emissions by over 20%. During braking, this machine acts as a generator,
slowing the vehicle and sending electricity to be stored in graphene ultra-
capacitors. During acceleration, this machine acts as a motor, drawing electricity
from the ultra-capacitors and providing power to accelerate the vehicle,
significantly reducing fuel consumption.

There are several advantages to purchasing lightweight vehicles as opposed to their

heavier, bulkier and less efficient counterparts.

1. Lightweight materials are essential for boosting the fuel economy of modern
Bikes while maintaining their safety and performance. Because it takes less
energy to accelerate a lighter Bike than a heavier one, lightweight materials
offer more potential for both automakers and auto buyers.
2. Lighter Bikes perform better in poor road conditions because their weight
does not force the vehicles down, impeding necessary changes of direction.
The momentum created by heavier Bikes is thus a liability during hazardous
driving. Braking distance is also a safety issue. Due to the heavier Bike’s
extra weight, the brakes must work harder to bring the Bike to a stop, which
is another demerit in the overall safety profile of the heavier automobile.

Not only are lightweight vehicles energy efficient, but they also enhance
performance. Models made from traditional steel feel heavier when driving.
Lightweight vehicles, on the other hand, are usually more maneuverable and easier
to park in tight spaces. Replacing heavy vehicle components with units made from
light-weight materials can reduce the weight of any vehicle from 10% to 60%.

Following are some the ideas which can help RE in reducing the weight of body of
the vehicle by making the use of light weighting materials for improving impact
strength, stiffness, providing additional space along with enhanced performance
and fuel efficiency.

 Elastolit – Front and rear bumpers of small Bike series are usually produced
from polyurethane systems with a wall thickness of 3.0 mm. Previous
attempts to lower the weight by reducing the component thickness failed due
 to insufficient mechanical properties such as mechanical strength, stiffness
and impact strength. Elastolit is a technological solution that is based on
high modulus PU basic material with high temperature resistance, stiffness
and very good impact strength. The weight is reduced by 600 grams per m²
surface area. Thus advantages of using Elastolit are Good inherent stiffness
despite relatively low thickness, Low weight, Good Strength and High
Impact strength even at extremely low temperatures.

 iStream Superlight – iStream uses tubular metal with 10 – 15 structural

composite panels. It is the ultimate automotive light weighting technology as
it maximizes the iStream approach by using cored honeycomb Bikebon fiber
composite and an aluminum frame to save almost 50% in body weight.
Other key advantages of iStream Superlight are, more efficient frame
stiffness achieved for aluminum section through the use of Bikebon iPanels,
Low weight aluminum frame can deliver a cost neutral BIW when compared
to stamped steel and Corrosion resistant properties exceed coated steel.
Similarly, like iStream Superlight, there is a product known as iStream
lightweight seat. Compared to a typical vehicle seat, the iStream lightweight
seat achieves a weight reduction of up to 30%. The iStream lightweight seat
can be designed to suit all types of passenger vehicle. Thus, key advantages
of iStream lightweight seat are 30% weight saving vs conventional modern
seat, iStream lightweight composite structure and Full four-way adjustment
and fold-flat mode. iStream is an acronym for iS = Stabilized; T = Tube; R =
Reinforced; E = Exo-frame; A = Advanced; M = Manufacturing.

 3D woven textile material – 3D woven composites are drastically lighter

than metal structures. This is relevant to the automobile industry. Every
pound of weight saved from an aircraft is to provide better Fuel Efficiency to
 the customer. Ensuring passenger safety in the event of an accident, flame
retardant materials are particularly important in the automotive industry.
Manufacturers must utilize materials that can hold up well to wear and tear
while resisting high-temperatures. In emergency situations, reliable fire
blocking materials can mean the difference between life and death. 3D
Woven Fabrics are used to manufacture flame retardant materials for use in
vehicle interiors to enhance safety. Another usage of 3D Woven Fabric in
automobile industry is that a Friction material has to be designed to provide
a contact interaction between parts. This friction material has to meet
industry requirements of high-energy absorption, heat resistance and high-
coefficient of friction which is provided by the use of 3D Woven Textile
material.

It is often said that it’s not the destination; it’s the journey that matters and for that
the space inside the Bike should be enough for a long journey. You don’t have to
fit into the space available by the Bike maker but there should sufficient room and
the customer should be happy with the allotted space. With very little leg room,
some of the things customer may experience are the stiffness for having to sit in a
position without moving for a long time. They can definitely develop some back
pain, some neck and shoulder pain. Sitting for long periods of time can increase the
risk of deep vein thrombosis (DVT) and pulmonary embolism. Thus it is critical
for the Bike makers to provide enough legroom and headroom space in the vehicle.
Following are some of the ways in which the Bikemaker can provide more
legroom and headspace in the vehicle.

 Adjustable Seats – The Bike maker can provide adjustable seats wherein
the user can move the Bike front and back according their needs to get
sufficient leg space.
 Split Seats – Bike Manufacturers can provide individual seats like the
driving seat which can move and fold independently depending upon the
requirement of the user. This will provide additional legroom space in the
vehicle.