Professional Documents
Culture Documents
CHAPTER - 1
Royal Enfield it is one of the brand name, Royal Enfield was founded in 1893wuth
name of Enfield cycle it was manufactured motorcycles, bicycles, and stationary engines.
And it is one of the England Company. Then expound their business thought out the world. In
1955 Enfield Cycle Company partnered with madras motor in India. (Chennai).
The first machines and its components imported from England in 1957. They are assembling
350cc Royal Enfield bullet motor cycles in Chennai. Enfield of India acquired the machines
and its necessary components build in India, and 1962 all components has been
manufacturing in india.the research aimed that study of royal Enfield brand in Indian
markets-so far how they have performed and suggestions for them to grab more market share
and be profitable. Every year, they sold moldiest numbers but despite low numbers, they
continue to command a position of respect and awe in the Indian motorcycles market.
My study topic is “Brand Image towards Royal Enfield” this study indicates the detail
about the brand image of Royal Enfield company and organizational study about Rohan
motors vijayapur
I have collected primary data from interacting with manager of Rohan motors , and collected
by survey method and asking questions to customers by questionnaire, and by getting help of
manager of the organization
Secondary data It was collected from journals, internet, articles, and websites. And
marketing department of Royal Enfield. And marketing books, and magazines.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
In this study I found majority of the customers satisfied with the Royal Enfield. And some of
the customers are not satisfied with the mileage of Royal Enfield. And if royal Enfield
launched new bike then most of the customer willing to buy.
I suggest they has to make new modal and stylish bike for the customers those are willing to
buy new bike.
This study reveals that by way of reducing the lead-time , improving fuel efficiency, service
and advertisement and by introducing new models capable to compete with the fresher‟s in
the market, Royal Enfield can easily make the whole customers into highly delighted
customers.
Contemporary research has examined market structure in order to explain consumer brand
preferences based on attributes of these brands. While Elrod (1988), Chintagunta (1994) and
Elrod and Keane (1995) use static market structure models, Erdem (1996) uses a dynamic
model. In another study, Bresnahan and Greenstein (1999) have exa0mined the principal
structural features of the computer industry in the U.S. at the industry-wide and segment
levels. They explain the persistence of dominant computer firms, their decline in the 1990s
and the changes in the competitive entry in this industry.
They discover that technological competition in the industry has increased through a) the
formation of young platforms serving newly founded segments that challenged established
platforms through the process of indirect entry and b) divided technical leadership resulting
from the vertical disintegration of platforms. Other studies that have examined industrial
structure include Baldwin and Gorecki (1994), Adelman (1951), Golan (1996) and Amato
(1995).
It is noteworthy that all such studies of evolution of industries have largely been confined to
the US and the Canadian experience. More specifically there does not exist any work along
these lines for the Indian industrial sector. The Indian industrial sector has undergone
profound regulatory changes in recent times as a consequence of the economic reforms
program put together in between 1988 and 1991. Consequent to these reforms some of the
industries that have been influenced the most have been the consumer durables industry (such
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as two-wheelers, washing machines, televisions etc.), the automobile industry and certain
financial services. Typically an economy undergoing industrial reforms resorts to regulatory
changes and redefines the role of the public sector in order to create a climate of growth and
foster private competition. Therefore it is pertinent to examine the structure and 3 evolutions
of industries (such as consumer durables) in economies where reforms have taken place, for
such industries show a propensity to evolve into oligopolies in the long run.
It would be important in this context, to analyze the impact that economic reforms have had
on industrial structure and to understand the implications thereof for the design of an
appropriate regulatory mechanism in response. In an evolving industry especially in emerging
economies like India, it is extremely important to formulate optimal policies on competition
in order to promote both competition as well as growth. In the U.S., for example, these
objectives form the basis for regulatory mechanisms enshrined in the Sherman Act of 1890,
the Clayton Act of 1914 (which targeted price discrimination) and the Robinson-Pat man Act
of 1936. The Miller-Tydings Act of 1937 modified the Sherman Act with regard to firms‟
policies on using distribution channels and giving specific dealer rebates etc.
One should note that for the Indian consumer durables industry the last point is crucial, since
most manufacturers operate through dealers and, the dealer margins have been on the rise in
order to provide protection for respective market shares
1. This fact could actually constitute "unfair" trade practices on the part of the firms. The
Indian two-wheeler industry resembles a cartel in the manner in which non-price
factors are used to make the output of a given firm more valuable than that of a rival.
The resulting higher price is due to this added cost. If the consumers valued the
additional services generated by this competition above its cost, presumably these
services would have been produced in a competitive market as well. Posner (1976)
argues that if antitrust laws are not formulated appropriately, competing sellers might
be able to engage in “conscious parallelism” or tacit collusion and that the 1 The
dealer margins have increased from around 5% to about 30% of the ex-factory price
between 1988 and 1999. The number of exclusive dealerships has also increased.
Sherman Act has proved ineffectual in dealing with the latter form of collusion. Bork
(1978), however, asserts that only explicit collusion was likely to exist given that
collusion without detailed communication and agreement (tacit) was not likely to be
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successful. In India, laws like the Monopolies and Restrictive Trade Practices Act
(MRTP) and Foreign Exchange Regulation Act (FERA) were designed to control
monopolistic tendencies in the markets. If these tendencies create welfare losses, then,
there is a case for framing appropriate antitrust legislation.
The competitive policy so developed must be able to distinguish between real competition
and purely theoretical competition. Competitive policy is not a road to Utopia or a
complete basis for public policy (Areeda and Kaplow (1988)). Yet as Stigler (1966)
points out, an optimal policy on competition often prevents the defects of social
organization from being made worse by preventing deliberate adoption of restrictive
practices by firms. In this paper we assess the degree of imperfection in the two-wheeler
industry in particular. The reason is that this industry underwent a sea change during
1985-1991 due to economic reforms introduced in this period. These reforms were aimed
at encouraging competition.
During this period, the two-wheeler industry saw the largest proliferation of brands in the
consumer durables industry but whether this indeed led to enhanced competition is an
empirical question, not yet examined. This paper purports to address this question.
Market imperfections are typically examined by calculating the Herfindah l index and the
four-firm concentration ratios at the industry-wide and segment levels. Industrial
economists have been debating the usefulness of these indices in assessing market
concentration.
While Posner (1976) argues that concentration ratios are but one of the indicators of
collusive tendencies and that it is necessary to include fringe firms in the 5 analysis,
Adelman (1951), Amato (1995), Golan, Judge, and Perl off (1996), and, Baldwin and
Gorecki (1994) have shown that the Herfindah l index forms a much sounder indicator of
the structure and performance of a given industry than four-firm concentration ratios.
The Herfindahl index is used, to a considerable extent, by the structuralize school, which
postulates that competition is a state of affairs (Reid, (1987)). While four firm
concentration ratios and Herfindahl indices have their virtues as indicators of market
concentration at a point in time, it is also important to understand the evolution of market
power over time.
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Such an inquiry would also be in consonance with the Austrian school, which believes
that competition should be examined as a process. In this spirit Baldwin and Gorecki
(1994) track the mobility of firms (which captures shifts in market structure) by using a
variant of the instability index of Hymer and Pashigian (1962). We have used the
Kendall‟s rank concordance test to put into perspective the mobility of the firms. This is a
more robust measure of tracking mobility of firms over time, since it also incorporates
certain aspects of Lorenz type measurements to indicate relative positions of firms over
time.
If this index is used along with the concentration ratios, one can identify the contributors
towards concentration over time in a clearer manner. This test also enables us to examine
whether the dominance of any given firm persists over time and if this dominance is
increasing/decreasing. However, a study of dominance in terms of persistence of ranks
needs to be supplemented with one on dominance in terms of levels. If the ranks of firms
in terms of shares in sales do not alter much over time, one still needs to assess whether
differences between the sales shares of these firms are narrowing over time.
The Evans and Karras (1996) test of convergence is ideally suited for this purpose. This
test enables us to examine whether firms within the industry as a whole, tend to grow at
similar rates in the long run and captures 6 the dynamics associated with the long-term
growth of volumes and market-shares at the segment and industry-wide levels. This, then,
sheds light on the inter-firm dependencies at these two levels, which in turn has
implications for the competitive strategies of firms. We also conduct this test for
production capacities of firms to test whether capacity expansion was the result of
competition within the industry.
This paper, therefore, attempts to analyze key aspects of the structural characteristics of
consumer durables industry in India. An analysis of the evolution of this industry has
implications for firms within the industry, as well as for regulators and policymakers.
It consists of three segments viz., scooters, motorcycles, and mopeds. The increase in
sales volume of this industry is proof of its high growth. In 1971, sales were around 0.1
million units per annum. But by 1998, this figure had risen to 3 million units per annum.
Similarly, capacities of production have also increased from about 0.2 million units of
annual capacity in the seventies to more than 4 million units in the late nineties. The TWI
in India began operations within the framework of the national industrial policy as
espoused by the Industrial Policy Resolution of 1956. (See Government of India 1980,
1985, 1992).This resolution divided the entire industrial sector into three groups, of which
one contained industries whose development was the exclusive responsibility of the State,
another included those industries in which both the State and the private sector could
participate and the last set of industries that could be developed exclusively under private
initiative within the guidelines and objectives laid out by the Five Year Plans (CMIE,
1990).
Private investment was channelized and regulated through the extensive use of licensing
giving the State comprehensive control over the direction and pattern of investment.
Entry of firms, capacity expansion, choice of product and capacity mix and technology,
were all effectively controlled by the State in a bid to prevent the concentration of
economic power. However due to lapses in the system, fresh policies were brought in at
the end of the sixties.
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4 All sales figures are from various issues of ACMA, capacity figures from various Five
Year Plan documents. 8 These consisted of MRTP of 1969 and FERA of 1973, which
were aimed at regulating monopoly and foreign investment respectively. Firms that came
under the purview of these Acts were allowed to invest only in a select set of industries.
This net of controls on the economy in the seventies caused several firms to operate
below the minimum scale of efficiency (henceforth MES), under-utilize capacity and, use
outdated technology. While operation below MES resulted from the fact that several
incentives were given to smaller firms, the capacity under-utilization was the result of the
capacity mix being determined independent of the market demand, ii) the policy of
distributing imports based on capacity, causing firms to expand beyond levels determined
by demand so as to be eligible for more imports.
Use of outdated technology resulted from the restrictions placed on import of technology
through the provisions of FERA. Recognition of the deleterious effects of these policies
led to the initiation of reforms in 1975 which took on a more pronounced shape and
acquired wider scope under the New Economic Policy (NEP) in 1985. As part of these
reforms, several groups of industries were de-licensed and „broad banding‟ 5 was
permitted in select industries. Controls over capacity expansion were relaxed through the
specification of the MES6 of production for several industries. Foreign investment was
allowed in select industries and norms under the MRTP Act were relaxed. These reforms
led to a rise in the trend rate of growth of real GDP from 3.7% in the seventies to 5.4% in
the eighties. However the major set of reforms came in 1991 in response De-licensed
industries meant that firms no longer required licenses from the State to enter the industry
or expand their plants.
Broad banding meant that a firm could manufacture products related to the ones they
were currently making without the need for a separate license. This meant that expansion
of capacity till the MES did not now require a license. to a series of macroeconomic
crises that hit the Indian economy in 1990-91 . Several industries were deregulated, the
Indian rupee was devalued and made convertible on the current account and tariffs
replaced quantitative restrictions in the area of trade. The initiation of reforms led to a
drop in the growth of real GDP between1990 – 1992, but this averaged at about 5.5% per
annum after 1992.
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The decline in GDP in the years after reforms was the outcome of devaluation and the
contractionary fiscal and monetary policies taken in 1991 to address the foreign exchange
crisis.
Thus the Industrial Policy in India moved from a position of regulation and tight control
in the sixties and seventies, to a more liberalized one in the eighties and nineties. The
two-wheeler industry in India has to a great extent been shaped by the evolution of the
industrial policy of the country. Regulatory policies like FERA and MRTP caused the
growth of some segments in the industry like motorcycles to stagnate. These were later
able to grow (both in terms of overall sales volumes and number of players) once foreign
investments were allowed in 1981. The reforms in the eighties like „broad banding‟
caused the entry of several new firms and products which caused the existing
technologically outdated products to lose sales volume and/or exit the market. Finally,
with liberalization in the nineties, the industry witnessed a proliferation in brands.
A description of the evolution of the two wheeler industry in India is usefully split up into
four ten year periods. This division traces significant changes in economic policy making.
The first time-period, 1960-1969, was one during which the growth of the two-wheeler
industry was fostered through means like permitting foreign collaborations and phasing
out of 7 The Indian economy was faced with several problems at this time.
Foreign exchange reserves were down to two month‟s imports, there was a large budget
deficit, double digit inflation, and with India‟s credit rating downgraded, private foreign
lending was cut off. Also the Gulf war in 1990 brought about an increase in oil prices,
and India had to import oil for over US$ 2 billion (GATT Secretariat, 1993).non-
manufacturing firms in the industry. The period 1970-1980 saw state controls, through the
use of the licensing system and certain regulatory acts over the economy, at their peak.
During 1981-1990 significant reforms were initiated in the country. The final time-period
covers the period 1991-1999 during which the reform process was deepened these
reforms encompassed several areas like finance, trade, tax, industrial policy etc.
We now discuss in somewhat greater detail the principal characteristics of each sub
period.1960 – 1969 the automobile industry being classified as one of importance under
the Industrial Policy Resolution of 1948 was therefore controlled and regulated by the
Government. In order to encourage manufacturing, besides restricting import of complete
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vehicles, automobile assembler firms were phased out by 1952 (Tariff Commission,
1968), and only manufacturing firms allowed to continue. Production of automobiles was
licensed, which meant that a firm required a licensing approval in order to open a plant. It
also meant that a firm‟s capacity of production was determined by the Government.
During this period, collaborations with foreign firms were encouraged. This illustrates the
fact that most firms existing in this period had some form of collaboration with foreign
firms. Table 1 also gives the details of the various firms that existed in the industry during
this time period and the product/s they manufactured
In the year 1970 – 1980 This was a period during which the overall growth rate of the
two- wheeler industry was high (around 15% per annum). Furthermore, the levels of
restriction and control over the industry were also high. The former was the result of the
steep oil price hikes in 1974 following which two-wheelers became popular modes of
personal transport because they offered higher fuel efficiency over cars/jeeps.
On the other hand, the introduction of regulatory policies such as MRTP and FERA
resulted in a controlled industry. The impact of MRTP was limited as it affected only large
firms like Bajaj Auto Ltd. whose growth rates were curbed as they came under the
purview of this Act. However, FERA had a more far-reaching effect as it caused foreign
investment in India to be restricted. In the motorcycle segment FERA did not cause
technological stagnation, as a consequence of which, new products nor firms entered the
market since this segment depended almost entirely on foreign collaborations for
technology. The scooter and moped segments on the other hand were technologically
more self-sufficient and thus there were two new entrants in the scooter segment and three
in the moped segment.1981 – 1990. The technological backwardness of the Indian two-
wheeler industry was one of the reasons for the initiation of reforms in 1981. Foreign
collaborations were allowed for all two-wheelers up to an engine capacity of 100 cc.
This prompted a spate of new entries into the industry the majority of which entered the
motorcycle segment, bringing with them new technology that resulted in more efficient
production processes and products. The variety in products available also improved after
„broad banding‟ was allowed in the industry in 1985 as Between 1974-79, sales of two-
wheelers increased by 60%, while that of cars declined by 21% and jeeps grew only by
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11%. Indian motorcycles in the seventies had two major drawbacks viz., low fuel-
efficiency and high weight. Worldwide however, there was a trend towards using high-
strength, low-weight materials for various components which resulted in vehicles that
were compact and had lower weight. Since fuel-consumption of a two-wheeler depended
on its weight, lighter vehicles meant greater mileage.
These drawbacks were overcome in the eighties when foreign collaborations were once
again allowed a part of NEP. This, coupled with the announcement of the MES of
production for the two-wheeler industry, gave firms the flexibility to choose an optimal
product and capacity mix which could better incorporate market demand into their
production strategy and thereby improve their capacity utilization and efficiency.
These reforms had two major effects on the industry: First, licensed capacities went up to
1.1 million units per annum overshooting the 0.675 million units per annum target set in
the Sixth Plan. Second, several existing but weaker players died out giving way to new
entrants and superior products 1991 – 1999 The reforms that began in the late seventies
underwent their most significant change in 1991 through the liberalization of the
economy.
The two-wheeler industry was completely deregulated. In the area of trade, several
reforms were introduced with the goal of making Indian exports competitive. The two-
wheeler industry in the nineties was characterized by a) an increase in the number of
brands available in the market which caused firms to compete on the basis of Fuel-
efficiency improved by (60-100)% in the new vehicles. In the seventies, motorcycle
mileage was on an average between 25 to 50 kmpl (kilometer per liter), which had now
improved to 50 to 80 kmpl. For mopeds it improved from 50 kmpl to 80 kmpl. Output of
the engines also increased from 3-4 HP to 10 HP per 100 cc. In the two-wheeler industry,
MES was pegged at 2, 00,000 units and 5, 00,000 units of annual licensed capacity for
non-exporting and exporting firms respectively (CMIE, 1990).
The EXIM Scrip was introduced which granted exporters entitlements worth 40% of their
export earnings. Similarly quantitative restrictions were replaced with import duties which
were around 85% of the two-wheeler industry (GATT Secretariat, 1993). Product features
and b) increase in sales volumes in the motorcycle segment vis-à-vis the scooter segment
reversing the traditional trend.
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INDUSTRY PROFILE
We are going to begin by looking at first bikes .They didn‟t work well and they were not very
fast but moved with being drawn by a horse or being pedaled. when you look at a motorcycle
today, have you ever thought what the old bikes were like? Were they easy to ride? How fast
did they go? Were they comfortable?
To answer all these questions, we have got to go quite a long way back say about 100years.
The world was very different in those days and there must have been a feeling of great
excitement. There was a great interest in science and engineering and almost every week,
some fantastic new invention appeared. First there were gaslights and then electricity and
new cures for many kinds of illnesses were always being announced this was period when
people started thinking about how to travel quickly and safely.
Before car and bikes, the quickest mode of travelling was steam trains. And if there was a
near to where you wanted to go then the next best thing was a stagecoach or paddle streamer.
No one, except the rich, could get from their own house to where they were going very
quickly. Then in 1885, a German called gottlieb Daimler made a small engine, which ran on a
kind petrol. It wasn‟t very good engine but it just worked. Daimler fitted the engine to a cycle
type frame, which exactly had one wheel at the front and two wheels at the year.
In the following year, another German, Wilhelm maybach rode the Daimler bike for a few
meter something which everyone thoughts was very brave. At last, a way of moving people
directly from one place to another had been invented.
Not everybody thought that this was good idea. In England there was a law, which said that
no vehicle powered by an engine could go faster than faster 4mph which is about as fast as
you walk. Many of the people were afraid and urged that the bike about should be banned.
But in1896 an act was passed that bikes can travel 12mph speed which is considered to be
fantastic speed.
At the same time, a French engineer called Dion made the first real good engine for
motorcycle and soon everyone was having a try at making complete machine. And this was
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the turning point where bike started getting its actual look many ideas poured in and were
given shapes also.
Today we won‟t see many British bikes on the road but most of the older bikes were make
in Great Britain, which had its name and fame. Now we see very few of British bikes. What
went wrong?
In 1900, bikes were not very good. They were hard to start, they had poor brakes and did not
have much power but everyone thought they were marvelous. For the first time, person could
have his own individual way of getting about. He had personal transport, which he could use
the moment he wanted to. Above all else, these first motorcyclists felt the sense of freedom,
which a bike gave them
The motorcycle manufactures felt the same excitement. New designs appeared almost every
day. Some were excellent and others silly but each factory learnt from others and bikes got
better and better in just a few years.
Then the first world war came in 1914, and the world changed. Bikes made in the first period,
from 1885 until the end of 1914 are called veterans and the riders who are relieving how the
motorcyclists rode are still using many today.
When the war came, the bikes went with the army. The fastest way to carry an urgent
message was to send through a good rider on a bike. Here again a bike has a turning point and
during this period bikes got opportunity to claim its stake in the market it was considered to
be best mode of traveling from remote area to urban and from plains to rough terrain. Where
a horse rider could not think of moving, their bikes were able to do so. Moreover would take
rest after certain interval of traveling, the bikes did not require since since it was a machine.
In 1948, the first 350-bullet roadster was introduced. Although it was a new motorcycle with
many design innovations. It was the first produced which had a rear swing arm. It also had an
oil filter and alloy primary chain case.
Introduction
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The feeling of freedom and being one with the nature comes only from riding a two wheeler.
Indians prefer the two wheelers because of their small manageable size, low maintenance,
and pricing and easy loan repayments. Indians streets are full people of all age groups riding
two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Thus in
India, we would see swanky four wheels jostling with our ever reliable and study steed: the 2
wheeler.
India is the 2nd largest two-wheeler market in the world with a size of over rs 100000mn.
Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring
the policy framework in consonance with WTO requirements environment has helped
restricting, and enabled industry to absorb new technologies, aligning itself with the global
development and also realize its potential in the country.
The liberalization policies have led to continues increase in competition which has ultimately
resulted
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COMPANY PROFILE
ROYAL ENFIELD
Website www.royalenfield.com
Royal Enfield was the brand name under which the Enfield cycle company (founded 1893)
Motorcycle was built in 1901; the original British concern was defunct by 1970. The Enfield
cycle company is responsible for the design and original production of the Royal Enfield
Bullet the longest-lived motorcycle design in history.
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Like other motorcycle manufacturers such as BSA the Enfield Cycle Company is began
business as a weapons manufacture, most famous for the Enfield rifle. This legacy is reflected
in the Company logo, Cannon and their motto, “Made like A Gun
In 1955, Enfield Cycle Company partnered with madras motors in India in forming Enfield of
India, based in Chennai, and started assembling the 350cc Royal Enfield Bullet motorcycle in
Madras. The first machines were assembled from components imported from England.
Starting in 1957, Enfield of India acquired the machine necessary to build components in
India, and by 1962, all components were made in India.
Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967. The
company‟s last new bicycle was the „Revelation‟ small wheeler, which was released in 1965.
Production of motorcycle ceased in 197- and the original Redditch, Worcestershire-based
Company was dissolved in 1971. Enfield of India continued producing the Bullet‟ and began
branding its motorcycle „Royal Enfield‟ in 1999. A lawsuit over the use of „Royal‟ brought
by trademark owner David Holder was judged in favor of Enfield of India, who now
produces motorcycles under the royal Enfield name.
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HISTORY
George Townsend set up a business in 1851 in Redditch making sewing needles. In 1882 his
son, also named George, started making components for cycle manufacturers including
saddles and forks. By 1886 complete bicycles were being sold under the name of Townsend
and also Ecossais. Albert Eadie joined the company and its name became the Eadie
Manufacturing Co in 1896 based in Snow Hill, Birmingham
In 1893, the Enfield Manufacturing Company Ltd was registered to manufacture bicycles,
adopting the branding Royal Enfield.
By 1899, Royal Enfield were producing a quadricycle – a bicycle modified by adding a wrap-
around four-wheeled frame, retaining a rear rider-saddle with handlebars – having a front-
mounted passenger seat, driven by a rear-mounted De Dion engine.
After experimenting with a heavy bicycle frame fitted with a Minerva engine clamped to the
front down tube, Enfield built their first motorcycle in 1901 with a 239 cc engine.
A light car was introduced in 1903 powered by either a French Ader V-twin or De Dion
single cylinder engine. In 1906 car production was transferred to a new company, the Enfield
Autocar Co Ltd with premises in Spark brook, Birmingham. The independent company only
lasted until 1908 when it was purchased by All days& Onions.
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In 1907, Enfield merged with the All days& Onions Pneumatic Engineering Co. of
Birmingham, and began manufacturing the Enfield-Allday automobile.
By 1910, Royal Enfield was using 344 cc Swiss MotosacocheV-Twin engines, or large-
displacement JAP and Vickers-Wellesley engines.
In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a 770 cc V-
twin JAP engine which was raced successfully in the Isle of Man TT and at Brook lands.
In 1914 Enfield supplied large numbers of motorcycles to the British War Department and
also won a motorcycle contract for the Imperial Russian Government. Enfield used its own
225 cc two-stroke single and 425 cc V-twin engines. They also produced an 8 hp motorcycle
sidecar model fitted with a Vickers machine gun.
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Inter-war years (1921–1939)
In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-
stroke 350 cc single using a Prestwick Industries engine. In 1928, Royal Enfield began using
the bulbous 'saddle' tanks and centre-spring girder front forks, one of the first companies to
do so. Even though it was trading at a loss in the depression years of the 1930s, the company
was able to rely on reserves to keep going. In 1931, Albert Eddie, one of the founders of the
company, died and his partner R.W. Smith died soon afterwards in 1933.
During World War II, The Enfield Cycle Company was called upon by the British authorities
to develop and manufacture military motorcycles. The models produced for the military were
the WD/C 350 cc sidevalve, WD/CO 350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV
and WD/L 570 cc SV. One of the most well-known Enfield‟s was the Royal Enfield WD/RE,
known as the Flying Flea, a lightweight 125 cc motorcycle designed to be dropped by
parachute with airborne troops.
In order to establish a facility not vulnerable to the wartime bombing of the Midlands, an
underground factory was set up, starting in 1942, in a disused "Bath Stone" quarry at
Westwood, near Bradford-on-Avon, Wiltshire. Many staff was transferred from Redditch and
an estate of "prefabs" was built in Westwood to house them.
As well as motorcycle manufacture, it built other equipment for the war effort such as
mechanical "predictors" for anti-aircraft gunnery: the manufacture of such high precision
equipment was helped by the constant temperature underground. After the war the factory
continued, concentrating on engine manufacture and high precision machining. After
production of Royal Enfield motorcycles ceased, the precision engineering activities
continued until the final demise of the company.
Postwar, Royal Enfield resumed production of the single cylinder ohv 350cc model G and
500cc Model J, with rigid rear frame and telescopic front forks. These were ride-to-work
basic models, in a world hungry for transport. A large number of factory reconditioned ex-
military sv Model C and ohv Model CO singles were also offered for sale, as they were sold
off as surplus by various military services.
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Spring frame Bullets 350cc 1949-1970
In 1949, Royal Enfield‟s version of the now popular selling parallel twins appeared. This
500cc version was the forerunner of a range of Royal Enfield Meteors, 700cc Super Meteors
and 700cc Constellations. Offering good performance at modest cost, these sold widely, if
somewhat quietly in reputation. The 700cc Royal Enfield Constellation Twin has been
described as the first Superbike
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
250 cc models
The 250cc class was important in the UK as it was the largest engine which a 'learner' could
ride without passing a test. In the late 1950s and early 1960s, Royal Enfield produced a
number of 250 cc machines, including a racer, the 'GP and a Scrambler, the 'Moto-X', which
used a modified Crusader frame, leading link forks and a Villiers Star maker engine. The
Clipper was a base-model tourer with the biggest-seller being the Crusader, a 248 cc pushrod
OHV single producing 18 bhp (13 kW).
RE Turbo Twin
The Avon 'Speed flow' full sports fairing was available as an extra in complementary factory
colours of red and white.
Other variants were the Olympic and 250 Super 5, notable for use of leading-link front
suspension (all the other 250 road models had conventional telescopic forks) and the 250
'Turbo Twin', fitted with the Villiers 247 cc twin cylinder two-stroke engine.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
The Royal Enfield GP production-volume racer was first raced in the Manx Grand Prix in
September, 1964. Developed in conjunction with Royal Enfield Racing Manager Geoff
Dukethe first public appearance was at Earls Court Show in November, 1964. Using a
duplex-tube frame, leading link forks and one-piece tank and seat unit, the 250cc two-stroke
single engine was similar to other small capacity race machines offered from rivals Greeves,
Cotton, DMW and particularly Villiers, which provided the engines for these marques and
many other manufacturers and bike-builders including the 'Star maker' competition engine
used for the Scorpion racer and Sprite scrambler
The Redditch factory ceased production in 1967 and the Bradford-on-Avon factory closed in
1970, which meant the end of the British Royal Enfield. After the factory closed a little over
two hundred Series II Interceptor engines were stranded at the dock in 1970. These engines
had been on their way to Floyd Clymer in the US; but Clymer had just died and his export
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
agents, Mitchell's of Birmingham, were left to dispose of the engines. They approached the
Rickman brothers for a frame. The main problem of the Rickman brothers had always been
engine supplies, so a limited run of Rickman Interceptors were promptly built.
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. A few
of the original Redditch factory buildings remain (2009) and are part of the Enfield Industrial
Estate.
Enfield Indians
From 1955 to 1959, Royal Enfield‟s were painted red, and marketed in the USA as Indian
Motorcycles by the Brock house Corporation, who had control of the Indian Sales
Corporation (and therefore Indian Motorcycles) and had stopped manufacturing all American
Indians in the Springfield factory in 1953. But Americans were not impressed by the badge
engineering and the marketing agreement ended in 1960, and from 1961, Royal Enfields were
available in the US under their own name. The largest Enfield 'Indian' was a 700 cc twin
named the Chief, like its American predecessors.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
Enfield India (since 1949)
Royal Enfield motorcycles had been sold in India since 1949. In 1955, the Indian government
looked for a suitable motorcycle for its police and army, for use patrolling the country's
border. The Bullet was chosen as the most suitable bike for the job. The Indian government
ordered 800 350-cc model Bullets, an enormous order for the time. In 1955, the Redditch
company joined Madras Motors in India in forming "Enfield India" to assemble, under
license, the 350 cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). Under
Indian law, Madras Motors owned the majority (over 50%) of shares in the company. In 1957
tooling equipment was sold to Enfield India so that they could manufacture components.
Enfield of India continued producing the 'Bullet' long after the UK factory's bankruptcy, and
changed its branding to 'Royal Enfield' in 1999. The 'Royal Enfield' name and rights had been
purchased by Matt Holder of Aerco Jigs and Tools, at the bankruptcy sale in 1967. The
business passed on to his son, David Holder, of the Velocette Motorcycle Company of
Birmingham, UK. The Holder family has produced spares for Royal Enfield motorcycles
continuously from 1967 through to the present, but did not trade under the Royal Enfield
name. While David Holder objected to the use of 'Royal Enfield' by Enfield of India, a UK
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
court ruled in favors of the Indian company, who has now assumed the trademark, and
produce motorcycles as Royal Enfield.
Royal Enfield India manufactures and sells in India, and also exports to Europe as well as the
Americas, South Africa and Australia. They recently entered the Indonesian market. Recently
Royal Enfield has undergone a major retooling particularly in the engine department going
from carburated cast-iron engines to twin spark unit construction engines on all its models,
with EFI available on their flagship 500 cc model. This retooling has sparked such an interest
in these bikes that they have started double shifts at the plants.
In August 2015, Royal Enfield Motors announced it is establishing its North American
headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three
bikes, the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this engine
size represents an underserved market. The dealership will be Royal Enfield's first company-
owned store in the U.S., according to Rod Copes, president of Royal Enfield North America.
The company wants to establish about 100 dealerships in American cities starting with
Milwaukee.
CHAPTER-2
METHODOLOGY
The topic I Chosen for my internship is “Brand Image towards Royal Enfield”. The
study of brand image towards royal Enfield was not more significant in olden days
My study is restricted only to Royal Enfield Bike‟s Vijayapur and it helps to know the brand
image towards the royal Enfield and it also helps to increase my knowledge towards the
marketing aspects as well as brand position of the company and it has occupied vital place
and play significant role in the success, existence and growth of company. it is necessary to
conduct a study customer‟s response and awareness to know the methods, techniques and
tools to make it more affective in terms of marketing of the company.
This study helps us to understand the current position of Royal Enfield among
customers of Vijayapur.
This study also helps to understand why younger generation is moving to Royal
Enfield.
It helps to understand whether customers are satisfied with the Royal Enfield or not.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
By this we will come to know since how long customers have been using this brand.
1.6 Methodology
Research Approach:
Survey Method
Field study:
Personal Interview
Sampling Method:
Stratified Random Sampling
Kotler describes branding as “a major issue in product strategy”. As the brand is only part of
the product, brand building and communicating strategy should work towards exposing the
brand and creating brand image and identity. Maintain that within the traditional branding
model the goal is to build brand image which is a tactical move for obtaining short-term
results. The brand should serve to identity a product and to distinguish it. The challenge today
is to create a strong brand identity and distinctive image.
Brand image is the understanding consumer derives from the total set of brand related
activities engaged in by the firm. Brand can also be differentiated through clear and
consistent image – building which is successful is based on a well-defined identity.
ESTABLISHED:
VANDANA BAGALI
Mrs. VANDANA P BAGALI is the main partner of ROHAN ENFIELD. She own 50% of
the ownership in the firm. She is the Active partner involved in the business of ROHAN
ENFIELD. All the authority of carrying out the financial, marketing, management and other
miscellaneous works is done by her commands.
ROHAN BAGALI
Mr. ROHAN.P.BAGALI is the Active partner of ROHAN ENFIELD. He owns 30% of the
ownership in the firm. He is the CEO of ROHAN ENFIELD and looks after all the
departments of the ROHAN ENFIELD. He receives the 40% profit share every year
SHARADHA BAGALI
Miss. SHARADHA BAGALI is the partner of the business holding 20% of the ownership in
the firm. She is the Nominal partner who only receives only some part of the profit of the
business in every financial year. She does not have any power to interfere in any of the
management activities.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
VISION AND MISSION
VISION:
ROHAN ENFIELD- This vision was driven by their commitment to customer, quality and
excellence, and while doing so, maintaining the highest standards of ethics and societal
responsibilities. They believe that the fastest way to turn that dream into a reality is by
MISSION:
ROHAN ENFIELD- Mission is to strive for creating sound environment and human
resources, to deal with customers and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standards of ethics and
social responsibilities.
To be Service oriented.
SWOT ANALYSES:
1. Strengths:
2. Weakness:
o Less promotional activity
o Many players entering in the race.
3. Opportunities:
o Increasing competition.
ORGANIZATION CHART:
Chair person
General Manager
Mechanics
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
PARTNERS
ASSISTANT
GENERAL MANAGER
DEPARTMENT
MANAGERS
DEPARTMENT
EXECUTIVES
ASSISTANT
MANAGERS
LABOURS
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
Top level.
Middle level
Bottom level
TOP LEVEL:
The top level management people will always think bigger about the organization
and they have more knowledge and high qualification in terms of taking decision. they
will take the decision on their own. The top level people have the responsibility to whole
organization and the happenings in the organization.
MIDDLE LEVEL:
The middle level people will always act as the bridge between the top and bottom
level people because they are on the basis of their knowledge so there are the decision
which will helps to the lower level people and also the top level.
BOTTOM LEVEL:
In this level the people obey the orders of the middle level management and their work is
to follow the orders of the both management levels. Thus the information flows in the
Organization within different levels are very flexible.
SALES DEPARTMENT This department‟s main motto is to do the sales of the product that
is FIAT Cars the head of this department is sales manager. Every Sales promotion activity is
done this department only.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
This department is responsible for the maintains of quality system in the sales
department.
Making the tax payment to the central government and state government.
Helping the customer‟s to make the loans in Finance and purchase the vehicle.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
CHAPTER – 4
No of respondents
No
0%
Yes
100%
Interpretation:
From the above table and figures it is clear that the whole respondents had Royal
Enfield bike.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
More than
No of respondents
3year
10%
1m-5m
14%
2y-3year
20% 5m-1year
22%
1y-2year
34%
Interpretation:
From the above table and figures it is clear that 34% of customers are
using since 1y-2year, 22% of customers are using since 5m-1year, 20% of customers are
using since 2y-3years, 14% of customers are using since 1m-5month, and 10% of
customers are using since more than 3years.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
No of respondents
Relatives Friends
16% 30%
Hoarding
18%
TV
Newspaper Advertisement
14% 22%
Interpretation:
From the above table and figure it is clear that 30% of customers had heard
about Royal Enfield from their friends, 22% by seeing TV advertisement, 18% by seeing
Hoardings on road, 16% of customers had heard from their relatives and rest of 14% by
newspaper.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
No of respondents
No
28%
Yes
72%
Interpretation:
From the above table and figure it is clear that 28% of customers yes, rest of
28% customers are no.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
5) While comparing with other bikes the model of Royal Enfield is?
No of respondents
Need to improve
24% Best
38%
Bad
6%
Interpretation:
From the above table and figure it is clear that 38% of customers said
best, 24% of Need to improve, 20% of customers can‟t say, 12% of customers said good
and 6% of customers said bad.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
6) Which color bike you like in Royal Enfield?
No of respondents
Black
40%
Ash
24%
Interpretation:
From the above table and figure it is clear that 40% of customers like
black color, 24% of customers like Ash, 14% of customers like sky blue, 12% of
customers like chrome red , and 10% of customers like silver.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
7) Are you satisfied with the service of Royal Enfield?
No of respondents
No
26%
Yes
74%
Interpretation:
From the above the table and figure it is clear that 74% 0f customers yes, rest of 26% of
customers No.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
8) What is your opinion on the performance of Royal Enfield?
Average
No of respondents
8%
Good
12%
Better
18%
Excellent
42%
Best
20%
Interpretation:
From the above table and figure it is clear that 42% of customer‟s opinion is
excellent, 20% of customer‟s opinion best, 18% of customer‟s better, 12% of customer‟s
good and 8% of customer‟s average.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
No of respondents
Bad
2%
Poor
6% Good
24%
Average
26%
Better
42%
Interpretation:
From the above table it is clear that 42% of customers said quality is
better, 26% of customer said Average, 24% of customer said good, 6% of customers said
poor, and 2% of bad.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
No of respondents
No
24%
Yes
76%
Interpretation:
From the above table and figure it is the clear that 76% of customers
are satisfied, and rest of 24% customers are No.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
No of respondents
Highly
dissatisfaction
0%
Can’t say
Dissatisfaction Satisfaction
16%
6% 26%
Highly
satisfaction
52%
Interpretation:
From the above table and figure it is the clear that 52% highly
satisfaction, 26% are satisfaction, 16% are can‟t say, 6% are dissatisfaction, and 0% are
highly dissatisfaction.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
NO of respondents
No
22%
Yes
78%
Interpretation:
From the above table and figure it is the clear that 78% customers are
Yes, and rest of 22% customers are No.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
FINDINGS
CONCLUSION
By the study of “BRAND IMAGE TOWARDS ROYAL ENFIELD WITH
SPECIAL REFERENCE TO VIJAYAPUR DISTRICT” was undertaken with the
objective of finding out customer‟s brand image level of Royal Enfield bikes. Here adopted
suitable methodology for data collection and analysis. And from the study it is clear all most
all peoples are aware of royal Enfield. And customers are highly satisfied with the service,
and performance of royal Enfield. This study reveals that by way of reducing the lead-time ,
improving fuel efficiency, service and advertisement and by introducing new models capable
to compete with the fresher‟s in the market, Royal Enfield can easily make the whole
customers into highly delighted customers.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
CHAPTER-5
SUGGESTIONS / RECOMMENDATIONS
SUGGESTIONS
1. Customers wants digital meter bike in Royal Enfield.
2. If company increases the mileages, then sale also increase.
3. Customers want alloy wheels and more stylish, so I suggest to company try to do.
4. Dealers should give the offers for services for retain the customers.
5. I suggest to company has to make more attractive color bikes in Royal Enfield.
6. According to interpretation and findings customers or not satisfied with the price. I
suggest, company has to work on it.
7. Company should focus on power, safety, and comfort.
8. Increase in customers query response.
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
CHAPTER-6
LIMITATIONS OF STUDY
Limitations of my study
The study is only conducted within the confines of Vijayapur city due to constraint of
time.
The maximum number of respondent are restricted to 50 because of constraints and
respondents were selected randomly
The demographical data given by the respondents may be biased.
The study covers some of the areas of Vijayapur.
There may intentional or un intentional refuse to reply by customer
BIBLIOGRAPHY
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
Reference Book:
Marketing management book:“Philips kotler”
Websites:
1. www.royalenfield.com
2. www.google.com
3. www.wikipedia.com
ANNEXURES
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
QUESTIONNAIRE OF ROYAL ENFIELD
PART’A’
GENERAL INFORMATION
Name:……………………………………………………………………………………………………….
Age:…………………………………………………………………………………………………………
Occupation:…………………………………………………………………………………………………
Address:……………………………………………………………………………………………………
……………………………………………………………………………………………………………….
Email id…………………………………………………………………………………………
“Part-B”
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
a) Yes b) No
5) While comparing with other bikes the model of Royal Enfield bike is?
a) Yes b) No
a) Yes b) No
13) How will you rate the body style, design and look of Royal Enfield?
14) After test ride what do you feel about the driving comfort of Royal Enfield?
15) What was the top speed you notice while riding Royal Enfield?
a) 60 b) 70 c) 80 d) 90 e) 100
a) Yes b) No
18) Do you willing to recommend your friends or relatives to purchase Royal Enfield?
a) Yes b) No
19) If new model bike is launched in Royal Enfield, would you willing to buy?
a) Yes b)No
Brand Image Towards Royal Enfield With Special Reference to Vijayapur
20) Any suggestions for Royal Enfield?
…………………………………………………………………………………………………………………….…………………
………………………………………………………………………………………………….……………………………………
………………………………………………
*****