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A

REPORT
ON

A STUDY ON CUSTOMER SATISFACTION TOWARDS

ROYAL ENFIELD BIKES, BANGALORE

Submitted in Partial Fulfilment of the Requirements of


Dr. A.P.J. Abdul Kalam Technical University, Lucknow
for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION


By

Prashant Dubey
Roll No: 1515470010

FMT, HCPG
(FACULTY OF MANAGEMENT & TECHNOLOGY, HARISHCHANDRA
POST GRADUATE COLLEGE)
Bawan Beegah, Varanasi
2015 2017

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Certificate
This is to certify that this organization Study Report titled
A STUDY OF CONSUMER SATISFACTION TOWARDS ROYAL
ENFIELD BIKES AT BANGLORE
based on an original study conducted by
PRASHANT DUBEY
of IIIrd Semester MBA under the guidance of
Ms. RAJINI KOHRA (MKT. DEPT.)
This report is based on the original study undergone and has not formed
the basis for the award of any other degree/diploma by AKTU or any other
University.

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DEEPAK RAJKUMAR
(SALES MANAGER)

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Declaration
I hereby declare that the project work entitled A Study on
Customer Satisfaction Towards

Royal

Enfield

Bikes

at

Banglore submitted to the Dr. A.P.J. Abdul Kalam Technical


University (AKTU), Lucknow, is a record of an original work done
by me under the guidance of Ms. Rajini Kohra. And this project
work is submitted in the partial fulfilment of the requirements for the
award of the degree of Master of Business Administration (MBA).
The result embodied in this thesis has not been submitted to any
other University or Institute for the award of any degree or diploma.

PRASHANT DUBEY
MBA- III SEMESTER
(1515470010)__ _

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Acknowledgement
It gives me tremendous pleasure in bringing out this project entitled A STUDY
ON

CUSTOMER

SATISFACTION

TOWARDS

ROYAL

ENFIELD

BIKES,

BANGALORE taken up during my IIIrd Semester of MBA course.


I am thankful to Mr. R.C. SHARMA Principal of Faculty of Management &
Technology, Harishchandra Post Graduate College for granting me permission for this
work and the help extended to me during the course of this project.
I express my deep gratitude and indebtedness towards my guide Ms. Rajani Korah
for her valuable guidance and assistance through stimulating discussion during the
course of this project work.
I am deeply indebted to Mr. Deepak Rajkumar, SALES MANAGER, Royal
Enfield, A Unit of Eicher Motors Ltd. for giving me the opportunity to undertake this
project work in their esteemed company. Their valuable guidance has been at most
useful.
Last but not the least; I would like to thank my parents, friends and all other
respondents for co-operating with me in this work during my study and making this a
successful one.

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NAME: PRASHANT DUBEY


ROLL NO: 1515470010

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Index
CHAPTER

CHAPTER 1
Introduction

CHAPTER 2
Research Design

CHAPTER 3
Company Profile

CHATPER 4
Data Analysis &
Interpretation

DISCRIPTION

PAGE
NO.

Its all about the Introduction part. It mainly


consists of introduction to Marketing with its
types, approaches, research and market
segmentation. Then comes introduction
about Customer Satisfaction with its steps,
customer loyalty and concepts, handling
customer complaints, how to deal with
dissatisfied customers and objectives of
customer satisfaction program. Later about
automobile industry till date, Indian two
wheeler market and its recent trends.

07

It consists of the title of the study, statement


of problem, objectives and scope of the
study, operational definitions, research
methodology, data collection, sample design,
plan of analysis and finally the limitations of
the study.
This chapter contains the historical
background of the company Royal Enfield,
companys vision and objective, Royal
Enfield products, organizational chart and
SWOT analysis of Indian two wheeler
markets and Royal Enfield.
This chapter consists of the analysis and
interpretation from the data collected
through questionnaires, tables and graphs
representing it.

35

42

62

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CHAPTER 5
Finding,
Conclusion And
Suggestions
ANNEXURE(S)

This chapter contains the findings drawn


from the study and final conclusion about the
whole project. Also few suggestions are
posted, and contains some suggestions to the
company
Questionnaire
Bibliography

78

85

CHAPTER 1

INTRODUCTION

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INTRODUCTION TO MARKETING
Marketing is the process of performing market research, selling products and/or
services to customers and promoting them via advertising to further enhance sales. It
generates the strategy that underlies sales techniques, business communication, and
business developments. It is an integrated process through which companies build strong
customer relationships and create value for their customers and for themselves.
Marketing is used to identify the customer, to satisfy the customer, and to keep
the customer. With the customer as the focus of its activities, it can be concluded that
marketing management is one of the major components of business management.
Marketing evolved to meet the stasis in developing new markets caused by mature
markets and overcapacities in the last 2-3 centuries. The adoption of marketing
strategies requires businesses to shift their focus from production to the perceived needs
and wants of their customers as the means of staying profitable.
The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions.
It proposes that in order to satisfy its organizational objectives, an organization should
anticipate the needs and wants of consumers and satisfy these more effectively than
competitors.
An orientation, in the marketing context, related to a perception or attitude a firm
holds towards its product or service, essentially concerning consumers and end-users.
Throughout history, marketing has changed considerably in time with consumer tastes.

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CONTEMPORARY APPROACHES

Recent approaches in marketing include relationship marketing with focus on the


customer, business marketing or industrial marketing with focus on an organization or
institution and social marketing with focus on benefits to society. New forms of
marketing also use the internet and are therefore called internet marketing or more
generally e-marketing, online marketing, search engine marketing, desktop advertising
or affiliate marketing. It attempts to perfect the segmentation strategy used in traditional
marketing.
CUSTOMER ORIENTATION
A firm in the market economy survives by producing goods that persons are
willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's
future viability and even existence as a going concern. Many companies today have a
customer focus (or market orientation). This implies that the company focuses its
activities and products on consumer demands. Generally, there are three ways of doing
this: the customer-driven approach, the market change identification approach and the
product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of consumer research.
Every aspect of a market offering, including the nature of the product itself, is driven by
the needs of potential consumers. The starting point is always the consumer. The
rationale for this approach is that there is no reason to spend R&D funds developing

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products that people will not buy. History attests to many products that were commercial
failures in spite of being technological breakthroughs.
A formal approach to this customer-focused marketing is known as SIVA
(Solution, Information, Value and Access). This system is basically the four Ps renamed
and reworded to provide a customer focus. The SIVA Model provides a
demand/customer-centric alternative to the well-known 4Ps supply side model (product,
price, placement, promotion) of marketing management.

Product

Solution

Price

Value

Place

Access

Promotion

Information

If any of the 4Ps were problematic or were not in the marketing factor of the
business, the business could be in trouble and so other companies may appear in the
surroundings of the company, so the consumer demand on its products will decrease.
ORGANIZATIONAL ORIENTATION
In this sense, a firm's marketing department is often seen as of prime importance
within the functional level of an organization. Information from an organization's
marketing department would be used to guide the actions of other departments within
the firm. As an example, a marketing department could ascertain (via marketing
research) that consumers desired a new type of product, or a new usage for an existing

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product. With this in mind, the marketing department would inform the R&D
department to create a prototype of a product/service based on consumers' new desires.
The production department would then start to manufacture the product, while the
marketing department would focus on the promotion, distribution, pricing, etc. of the
product. Additionally, a firm's finance department would be consulted, with respect to
securing appropriate funding for the development, production and promotion of the
product. Inter-departmental conflicts may occur, should a firm adhere to the marketing
orientation. Production may oppose the installation, support and servicing of new capital
stock, which may be needed to manufacture a new product. Finance may oppose the
required capital expenditure, since it could undermine a healthy cash flow for the
organization.
MARKETING RESEARCH
Marketing research involves conducting research to support marketing activities,
and the statistical interpretation of data into information. This information is then used
by managers to plan marketing activities, gauge the nature of a firm's marketing
environment and attain information from suppliers. Marketing researchers use statistical
methods such as quantitative research, qualitative research, hypothesis tests, Chi-squared
tests, linear regression, correlations, frequency distributions, poison distributions,
binomial distributions, etc. to interpret their findings and convert data into information.
The marketing research process spans a number of stages, including the definition of a
problem, development of a research plan, collection and interpretation of data and
disseminating information formally in the form of a report. A distinction should be made
between marketing research and market research. Market research pertains to research in
a given market. As an example, a firm may conduct research in a target market, after

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selecting a suitable market segment. In contrast, marketing research relates to all


research conducted within marketing. Thus, market research is a subset of marketing
research.
MARKET SEGMENTATION
Market segmentation pertains to the division of a market of consumers into
persons with similar needs and wants. For instance, Kellogg's cereals, Fro sites are
marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods
denote two products which are marketed to two distinct groups of persons, both with
similar needs, traits, and wants. Market segmentation allows for a better allocation of a
firm's finite resources. A firm only possesses a certain amount of resources. Accordingly,
it must make choices (and incur the related costs) in servicing specific groups of
consumers. In this way, the diversified tastes of contemporary Western consumers can be
served better.
Types of Marketing Research
Marketing research, as a sub-set aspect of marketing activities, can be divided into
the following parts:
Primary Research (also known as field research), which involves the conduction
and compilation of research for a specific purpose.
Secondary Research (also referred to as desk research), initially conducted for
one purpose, but often used to support another purpose or end goal.

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By these definitions, an example of primary research would be market research


conducted into health foods, which is used solely to ascertain the needs/wants of the
target market for health foods. Secondary research in this case would be research
pertaining to health foods, but used by a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to
information. Nevertheless, while secondary research is relatively inexpensive, it often
can become outdated and outmoded, given that it is used for a purpose other than the
one for which it was intended. Primary research can also be broken down into
quantitative research and qualitative research, which, as the terms suggest, pertain to
numerical and non-numerical research methods and techniques, respectively. The
appropriateness of each mode of research depends on whether data can be quantified
(quantitative research), or whether subjective, non-numeric or abstract concepts are
required to be studied (qualitative research).
There also exist additional modes of marketing research, which are:
Exploratory research, pertaining to research that investigates an assumption.
Descriptive research, which, as the term suggests, describes "what is".
Predictive research, meaning research conducted to predict a future occurrence.
Conclusive research, for the purpose of deriving a conclusion via a research
process.
PROMOTION (MARKETING)

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Promotion is one of the four elements of marketing mix (product, price,


promotion, distribution). It is the communication link between sellers and buyers for the
purpose of influencing, informing, or persuading a potential buyer's purchasing decision.
Fundamentally, however there are three basic objectives of promotion. These are:
1. To present information to consumers as well as others
2. To increase demand
3. To differentiate a product.
MARKETING STRATEGY
The field of marketing strategy encompasses the strategy involved in the
management of a given product. A given firm may hold numerous products in the
marketplace, spanning numerous and sometimes wholly unrelated industries.
Accordingly, a plan is required in order to effectively manage such products. For
example, a start-up car manufacturing firm would face little success should it attempt to
rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a
product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing
of production, may be made.

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CUSTOMER SATISFACTION
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals." It is seen as a key performance indicator within business and is part
of the four of a Balanced Scorecard. In a competitive marketplace where businesses
compete for customers, customer satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy. Within organizations,
customer satisfaction ratings can have powerful effects. They focus employees on the
importance of fulfilling customers expectations. Furthermore, when these ratings dip,
they warn of problems that can affect sales and profitability. These metrics quantify an
important dynamic. When a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective. In researching satisfaction, firms
generally ask customers whether their product or service has met or exceeded
expectations. Thus, expectations are a key factor behind satisfaction. When customers
have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying. For this reason, a luxury resort, for
example, might receive a lower satisfaction rating than a budget moteleven though its
facilities and service would be deemed superior in absolute terms.

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CUSTOMER SATISFACTION IN 7 STEPS


1. Encourage Face-to-Face Dealings
This is the most daunting and downright scary part of interacting with a customer.
If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest
assured, though, it does get easier over time. It's important to meet your customers face
to face at least once or even twice during the course of a project.
2. Respond to Messages Promptly & Keep Your Clients Informed
This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customers' queries within the space of a few hours, but at least email or call them back
and let them know you've received their message and you'll contact them about it as
soon as possible. Even if you're not able to solve a problem right away, let the customer
know you're working on it.
3. Be Friendly and Approachable
A fellow Site Pointer once told me that you can hear a smile through the phone.
This is very true. It's very important to be friendly, courteous and to make your clients
feel like you're their friend and you're there to help them out. There will be times when
you want to beat your clients over the head repeatedly with a blunt object - it happens to
all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you
can, and at all times remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If a
customer has a problem, what should they do?

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If the first option doesn't work then what? Should they contact different people for
billing and technical enquiries? If they're not satisfied with any aspect of your customer
service, who should they tell? There's nothing more annoying for a client than being
passed from person to person, or not knowing who to turn to. So make sure your
customer service policy is present on your site -- and anywhere else it may be useful.
5. Attention to Detail
Have you ever received a Happy Birthday email or card from a company you
were a client of? Have you ever had a personalized sign-up confirmation email for a
service that you could tell was typed from scratch? These little niceties can be time
consuming and aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on the other end of that
screen or telephone; and most importantly, it makes the customer feel welcomed, wanted
and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.
7. Honor Your Promises
It's possible this is the most important point in this article. The simple message:
when you promise something, deliver. Clients don't like to be disappointed. Sometimes,
something may not get done, or you might miss a deadline through no fault of your own.
Projects can be late, technology can fail and sub-contractors don't always deliver on
time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go a miss.

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CUSTOMER LOYALTY
Obtaining a thorough understanding of customer loyalty is a prerequisite for the
execution of the research at hand. For that, the development of customer loyalty research
within the framework of relationship marketing will be presented first, before different
customer loyalty concepts will be introduced. From these concepts, a definition of
customer loyalty for use in this study will be derived, before both consequences and
antecedents of customer loyalty will be portrayed.
Since the beginning of the 1990s, customer loyalty has gained importance both in
relationship marketing research and in business. In business, this can be attributed to
changing market- and competition-environments. Due to a shift from a sellers to a
buyers market and because of an increasing degree of globalization, most industries find
themselves confronted with new challenges. In a first phase, firms tried to face these
challenges by focusing on their internal processes and organizational structures, trying to
achieve cost reductions by concentrating on internal improvements. A second phase of
external focus followed, where firms directed attention to their customers, trying to
retain existing ones and to win over new ones (churning). Since acquiring new
customers is much more expensive than keeping them. And loyal customers are the
bedrock of any business. A loyal customer base represents a barrier to entry, a basis for
a price premium, time to respond to competitor innovations, and a bulwark against
deleterious price competition. Loyalty is critical to brand volume, is highly correlated to
market share, and can be used as the basis of predicting future market share;
consequently, understanding loyalty appears critical to any meaningful analysis of
marketing strategy.

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In marketing research, two trends mark the development of customer loyalty.


While individual transactions initially were in the center of marketing research, the
focus shifted towards analyzing relationships states that the traditional marketing
concept of the marketing mix with its 4 Ps, developed in the middle of the last century,
had been the established approach until the 1990s.
This approach, how-ever, focuses solely on transactions, a deficit tackled by the
relationship marketing approach. At the core of it is the study of relationships between
buyers and sellers of goods or services, in contrast to merely examining transactions. An
often cited and comprehensive definition of relationship marketing is provided
Relationship marketing refers to all marketing activities directed toward establishing,
developing, and maintaining successful relational exchanges. Therefore, the
relationship marketing approach pro-vides a suitable environment in which customer
loyalty research can be nested.
While the development of relationship marketing began in the early 1970s, it was
not until the late 1980s that works from the Nordic School of Services. Initiated a
paradigm shift that geared marketing towards the creation, conservation, and extension
of buyer-seller relationships. Although relationship marketing today is widely accepted
among marketing researchers, its promoters do not postulate the replacement of the
transactional approach, but rather juxtapose the two approaches. For example, delineates
a strategy continuum, in which different goods require different degrees of transactionand relationship-based marketing strategies. As a result of the focus on relationships in
marketing research, customer loyalty gained importance within research.

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CUSTOMER LOYALTY CONCEPTS


Reviewing research, it becomes obvious that the notion of customer loyalty is
blurred. At its core, customer loyalty deals with relationships between suppliers and their
customers and can be distinguished from other loyalty aspects, such as brand loyalty,
which refer to a more abstract attachment, such as that towards a brand. Within German
customer loyalty literature, the notion of customer loyalty is even more faceted,
encompasses both customer loyalty and customer retention distinguishes an active,
supplier-focused component and a passive, customer focused component of customer
loyalty.
In the supplier-focused perspective, customer loyalty is seen as a bundle of
measures that aim at improving relationships with customers. The supplier is in the
center of attention and the customer is only regarded as the factor at which success of
customer loyalty becomes manifest. Here it becomes clear that this approach contains a
conceptual deficit. It is the customer who eventually decides on whether customer
loyalty management is successful or not, because all activities undertaken by a supplier
can only be geared at influencing customers to be loyal. A customer-focused perspective
therefore has to be added to evaluate the success of customer loyalty management.
Within the customer-focused perspective, customer loyalty is conceptualized taking into
account customers complex characteristics. These can either be approached as
customers directly observable actions and/or take into account their attitudes and
intentions. Since customers actions are directly influenced by their attitudes and
intentions, it is obvious that these have to be scrutinized to understand and manage
loyalty. A third perspective is a synthesis of the former two approaches. The
relationship-focused perspective directly examines the relationship between suppliers

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and customers. Accordingly, the objects of study in this perspective usually are buying
behavior in retail contexts and long-term relationships marked by frequent interaction
between suppliers and buyers in industrial contexts.
BEHAVIORIST CUSTOMER LOYALTY CONCEPTS

Behaviorist concepts of customer loyalty have been at the core of early marketing
research and focus on customers observable behavior, as e.g. in purchasing behavior.
Accordingly, customer loyalty is established, when customers demonstrate consistency
in their choice of supplier or brand. Hard-core loyalty, when one product alternative is
exclusively repurchased and of reinforcing loyalty, when customers switch among
brands but repeat-purchase one or more alternatives to a significant extent. Similarly,
customer loyalty as the proportion of times a purchaser chooses the same product or
service in a specific category compared to the total number of purchases made by the
purchaser in that category. Pegging customer loyalty to purchasing behavior, however,
is very critical; there can be a multitude of factors affecting purchasing behavior, such as
product availability or special deals, which are not grasped by looking at purchases
alone. A main deficit of the behaviorist approach thus is that it does not look at the
drivers behind purchasing behavior. Another disadvantage of behaviorist customer
loyalty concepts is their ex-post approach. When loyalty is only expressed through
purchases, information on customers actual loyalty status in between purchases is not
available. Consequently, decreasing loyalty is only recognized after it manifests itself
through changed purchasing behavior. Only in relationships with frequent interaction
can a supplier integrate further aspects, such as complaints, into customer loyalty
management. The reason, why behaviorist concepts may still be valuable, is because the

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measurement of customer loyalty in this approach does not necessitate involvement by


the customer. The assessment of attitudes and intentions would always imply customers
cooperation through participation in surveys. By simply recording purchases, e.g.
through delivery records in the industrial context or customer cards in a consumer
context; the assessment of customer loyalty poses little difficulty. Particularly in areas,
where most purchases can be easily ascribed to individual customers, as is the case with
mail-ordering or book-stores on the internet, the behaviorist approach is useful for
identifying different customer groups and their characteristics. Such firms, however, can
only assess purchases of their own products, while purchases of competing products go
unnoticed. Firms can therefore neither draw conclusions about relative changes of
purchasing behaviors, nor evaluate their comparative market position.

NEO-BEHAVIORIST CUSTOMER LOYALTY CONCEPTS


These narrow technical definitions do not adequately capture the richness and
depth of the loyalty construct implicit in a relational framework. Consequently, neobehaviorist customer loyalty concepts start at the shortcomings of the behaviorist
approach by examining the causes of loyalty. As early as 1969, Day concluded that
loyalty should be evaluated with both attitudinal and behavioral criteria otherwise
accidental repeat-purchases, merely resulting from situational exigencies, would be
regarded as indicators of loyalty. There is no agreement, however, on the question,
whether attitudes are part of customer loyalty or merely an antecedent of it. Some
authors propose that only positive attitude can lead to true customer loyalty. If attitude
then is a necessary prerequisite of customer loyalty, some drivers of loyalty cannot be
explained. Transaction cost theory, for instance, provides the concept of asset specificity.

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Relationship-specific investments create economic switching barriers and therefore


increase customer loyalty. However, the mere repeat purchase of goods or services for
reasons of economic constraints would not qualify as loyalty, as positive attitudes are not
involved. In order to avoid the outlined problem, it is useful to abstain from defining
positive attitude to be a necessary antecedent of loyalty. Instead, researchers usually
consider intentions and observable behavior to be the constituting elements of customer
loyalty.

OBJECTIVES OF CUSTOMER SATISFACTION


PROGRAMME
Our Programs are research based, built on the three corner stones of customer
satisfaction: product quality, process and procedural quality, and relationship quality.
Our typical program assesses specific issues under each component, for example:
Product Quality

meets or exceeds expectations

state-of-the-art technology

validated, tested, & simulated to client specifications

competitive pricing

enhance customer value

Procedural Quality

ease of ordering

accurate fulfillment

inventory meets needs

on time delivery

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environmentally friendly packing

packaged to prevent damage in shipment

ease of tracking

appropriate adjustment/return policy

order-through-delivery process bests competition

Relationship Quality

product knowledgeable contacts

knowledgeable about client needs

communicates at client knowledge level

one-stop problem resolution

problems solved at the root cause

legendary customer service benchmarks competition

The tailored Programs provide direct, statistically valid, comparison data of you to your
competition on the following actionable areas:

Responsiveness

Competitiveness

Innovativeness

Quality

Customer Service

Long Term Partnering

It accurately quantifies your competitive strengths and weaknesses from your customers'
perspective. Using the data, it will help you focus strategic efforts to retain and increase
market share. The programs also provide direct measure of the effectiveness of

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initiatives your organization has implemented during prior year (after first year's
participation). That is, you will have quantifiable internal benchmarks (in addition to the
external competitive benchmarks) on the repeat annual surveys to judge progress based
on actions you have taken during the previous 12 months.

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TABLE SHOWING KEY FACTORS FOR CUSTOMER


SATISFACTION

COMPANY FUNCTION

QUALITY FACTORS
Product

Sales
Knowledge
Brochure detail
Marketing
Mailing frequently
Order Delivery time
Distribution
Order Completeness
Problem Response Time
After Sales
Time to Resolve
Accuracy
Accounts

Problem Response
Courtesy

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CUSTOMER CARE AND SALES PROCESSES


Service organizations are particularly dependent on levels of customer care, as the
people element in the marketing mix reflects. Customer care can play an equally
important role, however, in manufacturing, production and other organizations providing
goods and services. For customer care programs to be successful they need to span the
entire organization. Popular guarantees 100% customer satisfaction and has, over the
years, developed a more conscientious approach to individual customers. There is
Customer care training provided. Though this may initially be a very lengthy process as
the ball starts rolling through all sectors of the organization and costs will grow too, as
further investment is required to update and maintain the initiative in the future. To
provide an effective customer care services, every employee is highly motivated. There
are frequent internal newsletters circulated which strengthens the bond throughout the
organization. Frequent performance appraisal throughout the organization is conducted
to evaluate the employees and provide career developmental opportunities to potential
employees. The customer care program at Popular mainly have six main stages, as
follows:
1. Objectives setting: For every month, target sales will be fixed by the Sales
Manager at the showroom.
2. Current situation analysis: Present industrial trend is observed closely and
various promotional offers are introduced to boost sales if there is a chance for a
slump in sales. Also, a customer service audit is conducted both internally and
externally. Monthly sales targets fixed by the Sales Manager.

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


service and sales from the current to the desired standard based upon any change in
trends and the economic conditions prevailing. Each region is divided into 4 zones.
Each zonal level will be under the charge of a supervisor under whom there are four
sales executives. It is the duty of these sales executives to generate on field
enquiries and to follow up the customers based on the appointment fixed.
4. Functional planning: Define training needs and other requirements such problemsolving sessions or teambuilding exercise to execute the strategy. Daily, a meeting
of all the staffs at their respective branch is convened. Here they discuss their daily
programs and targets to meet plus they also discuss about their previous days work
among the team. They consider the response of all the individual customers met.
5. Implementation: Implement training and other initiatives through workshops,
seminars. The prospective customers are segregated and the issues raised by certain
customers will also be addressed. Some customers may not be satisfied with the
present offers and price. In such cases efforts will be put up to make maximum
adjustments and convert it to sales.
6. Monitoring: Results are tested through customer and employee surveys and
evaluation of the training methods is also conducted. The program is improved and
updated on a continuous basis.

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HANDLING CUSTOMER COMPLAINTS


A complaint is any measure of dissatisfaction with your product or service, even
if its unfair, untrue, or painful to hear! Complaints may be about:
Service Content, Delivery or Quality

Response Time

Documentation

Personnel

Billing

Communication

Follow Up

Requests

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


Focus on the Customer
If you cant immediately solve the problem, respond to the customer and identify an
owner who will be responsible for final resolution. Complete the communications
loop with customer. If youve referred the complaint to others, make sure theres closure.
If youve left the customer hanging without a response, youve become part of the
problem.
Focus on the Complaint
Collect all complaints from all external customers and categorize them in a way that
allows you to analyze data to see trends, patterns, concentrations, tendencies, etc.
Focus on Process Improvement
Use the database of complaints to define processes that are important from the
customers perspective and to improve the most critical ones. Based on analysis of the
database, make appropriate investments to prevent issues that result in customer
complaints. If you can think of complaints as useful data for making process
improvements in your organization, you will go a long way towards making changes

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that will differentiate you and make your work life easier, more fun, and more
responsive to customer needs.

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SIX STEPS TO DEALING WITH DIS-SATISFIED


CUSTOMERS
1. Listen carefully to what the customer has to say, and let them finish-Don't get
defensive. The customer is not attacking you personally; he or she has a problem and is
upset. Repeat back what you are hearing to show that you have listened.
2. Ask questions in a caring and concerned manner-The more information you can
get from the customer, the better you will understand his or her perspective. Ive learned
its easier to ask questions than to jump to conclusions.
3. Put yourself in their shoes-As a business owner, your goal is to solve the problem,
not argue. The customer needs to feel like youre on his or her side and that you
empathize with the situation.
4. Apologize without blaming-When a customer senses that you are sincerely sorry, it
usually diffuses the situation. Don't blame another person or department. Just say, "I'm
sorry about that.
5. Ask the customer, "What would be an acceptable solution to you?"-Whether or
not the customer knows what a good solution would be, Ive found its best to propose
one or more solutions to alleviate his or her pain. Become a partner with the customer in
solving the problem.
6. Solve the problem, or find someone who can solve it quickly!-Research indicates
that customers prefer the person they are speaking with to instantly solve their problem.

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When complaints are moved up the chain of command, they become more expensive to
handle and only add to the customer's frustration.

INDUSTRY PROFILE
AUTOMOBILE INDUSTRY TILL DATE
The automobile industry is one of the biggest industries in the world. Being a
major revenue and job generating sector it drives the economies of some of the
superpowers of the world. In India the automobile industry has grown by leaps and
bounds since the advent of the liberalization era the automobile industry and especially
the two wheeler segment has grown by leaps and bounds.
The liberalization has done away with primitive and prohibitive practices of
licensing and restricted foreign investment have been done away with. The result of
which was the entry of foreign players into the Indian market. The two wheeler segment
was largely dominated by Automobile Products of India (API) and Enfield in the 50s.
Later on towards the end of the 50s Bajaj Autos began importing Vespa scooters from
Italian company Piaggio. In the following decades the automobile industry in India was
mainly dominated by scooters with API and later Bajaj dominating the market. There
were very few products and choices available as far as motorcycle is concerned and
Enfield bullet and Rajdoot dominated the market. The 80s saw the entry of Japanese
companies in the Indian market with the opening up of the market to foreign companies.
Hero Honda and TVS Suzuki are companies formed in this era of market reform. The
market was still predominantly scooter dominated and Bajaj and LML were the leading
brands producing the products at that time.

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The Japanese companies not only collaborated with Indian companies to produce
the already existing products but also brought in new technology as a result of which the
ever conquering 100cc bikes which were extremely fuel efficient with 4 stroke engines
were launched in India. These proved to be highly successful as they provided a cheap
and affordable means of personal transport to all those who could not buy a car. The
flourishing middle class took a great liking for these bikes and the bike sales in India
began to grow exponentially year on year leading to Hero Honda becoming the leader in
the two wheeler industry in India and the largest producer of two wheelers in the world.
The post 90s era was the era of liberalization and weakening of restrictive measures. The
government went on an overdrive to support the industry and all FDI regulations and
licensing was abolished. 100% FDI was allowed in the automobile industry and the
excise duty was also considerably reduced to its current level of 12% on two wheelers.
All these factors combined with the rising fuel prices, the increasing dispensable
incomes of households, easy access to finance, etc. have led to two wheeler industry
becoming the backbone of the automobile industry in India. The two wheeler industry in
India forms a major chunk of the automobiles produced in India. According to Society
of Indian Automobile Manufacturers statistics for the year 2009 2010, two wheelers
comprise 76.49% of market share among the vehicles produced in India. The production
share of two wheelers is quite similar to the market share. The two wheeler industry
comprises around 74% of the total automobiles produced in India. The SIAM data for
the year 2009-10 states that 8,418,626 two wheelers were produced during the year
against a total of 11,175,479vehicles produced during the year.
India emerged as Asia's fourth largest exporter of automobiles, behind Japan,
South Korea and Thailand. Indias automobile sector consists of the passenger cars and
utility vehicles, commercial vehicle, two wheelers and tractors segment. The total

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market size of the auto sector in India is approximately Rs 540 billion and has been
growing at around 8 percent per annum for the last few years. Since the last four to five
years, the two wheelers segment has driven the overall volume growth on account of the
spurt in the sales of motorcycles. However, lately the passenger cars and commercial
vehicles segment has also seen a good growth due to high discounts, lower financing
rates and a pickup in industrial activity respectively. Major automobile manufacturers in
India include Maruti Udyog Ltd., General Motors India, Ford India Ltd., Eicher Motors,
Bajaj Auto, Daewoo Motors India, Hero Honda Motors, Hindustan Motors, Hyundai
Motor India Ltd., Royal Enfield Motors, TVS Motors and Swaraj Mazda Ltd.
With the economy growing at 9% per annum and increasing purchasing power
there has been a continuous increase in demand for automobiles. This, along with being
the second largest populated country, makes the automobile industry in India a very
promising one.

INDIAN TWO WHEELER MARKET


Ever since the old Lambretta scooter was replaced with the flurry of vibrant two
wheeler models, Indian two wheeler industry has seen a phenomenal change in the way
they perceive the Indian market. Two wheeler manufacturers are now competing in an
ever growing consumer market by bringing out new products and features. The country
has now grown into the second largest producer of two wheelers in the world. Currently
there are around 10 two-wheeler manufacturers in the country, and they are Bajaj, Hero,
Hero Honda, Honda, Mahindra/Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha.
There have been various reasons behind this growth. Because of poor public transport
system, the citizens found convenience in two wheelers. Added to this is the fact that the

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average Indian still does not have the purchasing capacity for a more expensive, four
wheeler. The story of

Mr. Ratan Tata inspired by a family of four members travelling

in Indian roads, not concerned about safety and the evolution of the idea of TATA Nano
has been quite famous globally. The Indian two wheeler industries can be divided into
motorcycles, scooters and mopeds. The consumer has changed his preference from
mopeds to scooters and then to motorcycles. The trends seen in the past few years
include females increasingly using two-wheelers for their personal commutation and
various two wheeler manufacturers designing vehicles specially to cater to needs of this
segment. One of the earliest revolutions in this industry was Kinetics introduction of the
concept of electronic/self-start and automatic gears which made two wheelers
comfortable and useable by women, when compared to old Bajaj Chetak advertisements
which showed middle aged females riding a Bajaj Chetak scooter.
A recent trend in the industry has been electric vehicles, which mostly leverage on
their eco-friendliness and low operating costs, but is still not accepted well due to the
lack of reputation of the manufacturers and lack of trust on technology, which is still
being perceived in the nascent stages, especially battery and inverters which prove to be
very expensive components. TVS recently leveraged this opportunity by launching a
hybrid model of their non geared scooter TVS Scooty. The end of the last decade saw
Bajaj taking a radical decision to do away with the Scooter range and completely
concentrate on motorcycles, especially stating change in customers preference as the
main reason. The customers are left without a choice in most cases than to migrate from
the traditional scooters of the Indian family to the all youthful bikes.

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RECENT TRENDS IN TWO WHEELER SECTOR


The international trends suggest that the growth of the two-wheeler markets will
continue unabated for some time. In value terms, the BRIC motorcycles market grew by
14.7% between 2006 and 2010 to reach a value of $32.4 billion (Brazil alone growing
by 32% pa). By 2013, the market is forecast to have a value of $54.7 billion.
The global motorcycle demand has been growing at 6-7% pa and is estimated to be
about 80-85 million units per annum. India has emerged as one of the key players with a
domestic market that is nearly about 11% of the global market and growing significantly
faster. The high base implies that India and Indian companies are set to enter a stage
where they are likely to be the preferred suppliers for motorcycles.
Of course, the Indian market is significantly different with the segment below 150 cc
being the dominant segment. This is unlike the developed world, where it is the larger
bikes that dominate the market volumes. Indian consumption is also likely to shift
significantly toward international trends, but in the foreseeable future, it is the smaller
bikes that will remain the mainstay.
At present as many as 72% of the bikes are in the entry segment (defined as 75 to 125
cc), and 27% are in the executive segment (defined as 125-250 cc). Only 1% of the bikes
are in the premium segment.
The premium segment is expected to continue to be a niche segment and its share is not
expected to grow beyond 2-2.5% over the next decade. However, that itself implies that
it will be a market of about 200,000 to 250,000 annual units, which is substantial and
attractive. (As a comparison, the declining Japanese market currently consumes only
about 350,000 motorcycles annually in the above-250 cc category, having fallen sharply
over the past few years)

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CHAPTER 2
RESEARCH DESIGN

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INTRODUCTION
Royal Enfield one of the popular brand and highest selling bike in India and
outside India (USA, Europe, Australia etc). Royal Enfield motorcycles had been sold in
India from 1949. In 1955, the Indian government looked for a suitable motorcycle for its
police and army, for use patrolling the country's border. As far as the motorcycle brand
goes, though, it would appear that Royal Enfield is the only motorcycle brand to span
three centuries, and still going, with continuous production. Product range has widened
and the customer has evolved.

TITLE OF THE STUDY


A Study on Customer Satisfaction towards ROYAL ENFIELD BIKES, Bangalore

STATEMENT OF THE PROBLEM


Customer satisfaction plays a crucial role in enabling an organization to change
and develop with customers. Keeping the existing customer contended is generally much
easier, takes less time and involves less expense. The reason for this is that it takes more
time to find new prospective customer. In this context study is conducted with special
reference to customer satisfaction. A company can earn more profits only when it has
strong customer care towards product and services offered by the company. So to have
strong customer care it has to provide a competitive price further advertising to increase.

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OBJECTIVES OF THE STUDY


1. To understand the reasons for purchasing Royal Enfield bikes.
2. To know about the experience after purchase relating various parameters (Service,
bike performance, mileage etc).
3. To ascertain the barriers to purchasing a Bullet for a prospective customer.
4. To ascertain the factors that affects the choice of a Bullet as a motorcycle for
common man.
5. To propose an effective Promotional campaign plan for brand Royal Enfield.
6. To determine the customers satisfaction regarding bikes and after sales service.

OPERATIONAL DEFINITIONS
1. Customer- A customer (also known as a client, buyer, or purchaser) is usually used to
refer to a current or potential buyer or user of the products of an individual or
organization, called the supplier, seller, or vendor.
2. Customer Satisfaction- A business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction
is defined as "the number of customers, or percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals."
3. Respondents- A person who replies to something, esp. one supplying information for
a survey or questionnaire or responding to an advertisement.
4. Objective- An end that can be reasonably achieved within an expected timeframe and
with available resources.
5. Bike- A motor vehicle with two wheels and a strong frame.
6. Buying- To acquire in exchange for money or its equivalent purchase.

SCOPE OF THE STUDY

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This study includes Customers response and awareness towards the brand, products and
services of Royal Enfield. The results are limited by the sample size 75 numbers and
therefore the opinion of only selected customers is taken into consideration. Mainly this
study is conducted in Varanasi and the scope is limited.

RESEARCH METHODOLOGY
The research will be carried out in various phases that constitute an approach
of working from whole to part. It includes subsequent phases trying to go deeper into the
users psyche and develop a thorough understanding of what a user looks for while
buying a bike.
The first phase is completely internal where it is stormed over the most effective route of
action, considering that Bullet users in Varanasi are more in number.
The second phase is with some of the seasoned bikers who have been using Bullets for
some time now and are generally known and respected amongst the Bullet community.
The third phase is with some respondents who will be interviewed with the help of
questionnaire keeping in mind the time and cost constraints.

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TOOLS OF DATA COLLECTION

The information relevant for study was drawn from Primary data collected
through survey method, which alone was not sufficient. Hence Secondary data was
collected to study successfully.

Primary data- In order to find out customer satisfaction regarding bikes of Royal
Enfield Primary Data was collected by personally visiting the dealerships and
showrooms. With the help of a well laid questionnaire, I took the feedback from
the customers who were coming for the services of their bikes at the dealerships.
As well as I contacted some of the customers through telex calling by taking the
data about the customers from the customer data register of the dealership. I
interviewed them and discussed with the showroom staff as well as with the
employees at Royal Enfield which helped me to prepare the research Report.
Secondary data- The Secondary Data collection involved internet search,
browsing magazines, newspapers and articles and papers related to the two
wheeler industry in India. Numerous Journals and books related to the topic were
also browsed to understand the dynamics of the industry.

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SAMPLE DESIGN
The research was carried out in various phases that constituted an approach of
working from whole to part. It included subsequent phases trying to go deeper into the
users psyche and develop a thorough understanding of what the user looks for while
buying a bike. In order to get a perspective from non-Bullet riders as to what are the
reasons for not choosing a Bullet, I administered the same questionnaire to riders who
used other motorcycles keeping in mind the time and cost constraints. For the customer
satisfaction study a sample of 75 persons was chosen from the in Varanasi city. The
sample was judgmental and methodology was convenient random sampling.

Size of Sample

75

Sampling technique

Convenient Random Sampling


method

Location from which samples were


taken

Bangalore City

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PLAN OF ANALYSIS
Raw Primary data has been collected with help of questionnaire. The raw data has
been tabulated with the help of table. From the tables, concept, analysis and
inferences are drawn which in turn was used for interpretation. Based on, these
charts were prepared to better pictorial understanding of the study.

From the set of inferences and interpretation, conclusion have been drawn which
is followed by suggestions, keeping the objectives in mind throughout the study.

LIMITATIONS OF THE STUDY


This research is geographically restricted to Varanasi city only. Hence the result
cannot be extrapolated to other places.
The study is restricted only to the organized sector of two wheeler industry.
Sample size was confined to 75 respondents keeping in view of time and cost
constraints.
Findings are based on sample survey. The information executed by respondents
may or may not be true because some respondents may not be serious. However
all possible has been made to collect the information as authentically as possible.
All interview questions are undisguised or direct. Hence there is a scope for the
respondents to be biased or pretentious.
This project has been taken up at the undergraduate level and the knowledge and
experience of the student is limited and hence may not be professional enough.

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CHAPTER 3
COMPANY PROFILE

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HISTORY OF THE COMPANY


Mid 19th century England The firm of

George

Townsend & Co. opened its doors in the

tiny

village

of

Hunt

End,

near

the

Worcestershire town of Redditch. The firm was specialized in sewing needles and
machine parts. In the first flush of enterprise, flitting from one opportunity to another,
they chanced upon the pedal-cycle trade. Little did they know then that it was the
beginning of the making of a legend. Soon, George Townsend & Co. was manufacturing
its own brand of bicycles. And in 1893 its products began to sport the name Enfield
under the entity Enfield Manufacturing Company Limited with the trademark Made
Like a Gun. The marquee was born.
INDUSTRY

: Motorcycles, Lawnmowers

SUCCESSOR

: Royal Enfield Motors (formerly Enfield of India)

FOUNDED

: 1893, as Enfield Manufacturing Co. Ltd.

DEFUNCT

: 1971

HEADQUARTERS: Redditch, Worcestershire, England


KEY PEOPLE

: Founders Albert Eadie and Robert Walker Smith

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PRODUCTS

: Royal Enfield Clipper, Crusader, Bullet, Interceptor.

PROFILE OF THE ORGANIZATION


Royal Enfield is the makers of the
Bullet brand in India. Established in 1955,

famous
Royal

Enfield (India) is among the oldest bike


companies.

It

stems

from

the

British

manufacturer, Royal Enfield at Redditch.


Royal Enfield has its headquarters at Chennai

in

India. Bullet bikes are famous for their power, stability and rugged looks. It started in
India for the Indian Army 350cc bikes were imported in kits from the UK and assembled
in Chennai. After a few years, on the insistence of Pandit Jawaharlal Nehru, the
company started producing the bikes in India and added the 500cc Bullet to its line.
Within no time, Bullet became popular in India.
Bullet became known for sheer power, matchless stability, and rugged looks. It
looked tailor-made for Indian roads. Motorcyclists in the country dreamt to drive it. It
was particularly a favorite of the Army and Police personnel. In 1990, Royal Enfield
ventured into collaboration with the Eicher Group, a leading automotive group in India,
in 1990, and merged with it in 1994. Apart from bikes, Eicher Group is involved in the
production and sales of Tractors, Commercial Vehicles, and Automotive Gears. Royal
Enfield made continuously incorporating new technology and systems in its bikes. In
1996, when the Government of India imposed stringent norms for emission, Royal
Enfield was the first motorcycle manufacturer to comply. It was among the few
companies in India to obtain the WVTA (Whole Vehicle Type Approval) for meeting the

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European Community norms. Today, Royal Enfield is considered the oldest motorcycle
model in the world still in production and Bullet is the longest production run model.

EVOLUTION OF ROYAL ENFIELD


THE BEGINNING (1851 1890)
Hunt End, England was a village of several
mills manufacturing needles and fish-hooks. It

small
was

here in 1851 that George Townsend put up his


needle-making mill, which he named Givry
Works. But it wasnt until his passing away that

his

son, George Jr. and his half-brother brought into

Givry

Works one of the first 'boneshakers' a crude cycle. It had a backbone of iron, with
wooden wheels, iron tires and pedals of triangular pieces of wood! Though the bike was
a source of some amusement, George and his team felt they could easily improve on it.
The earliest modern safety bicycle with two wheels of equal size had appeared in about
1880. All manufacturers were trying their hand at this new venture. So was George
Townsend Jr. By luck, he chanced upon an invention in his neighbourhood a saddle
that only used one length of wire in the two springs and in the framework. This was
adopted, patented and marketed as the 'Townsend Cyclists Saddle & Spring'. He had
entered the bicycle parts trade!
From bicycle parts, Townsend slowly moved on to producing bicycles himself. He
was also supplying a wide range of parts to other manufacturers - Givry Works was
growing rapidly. Over the next three years he developed his own range of over two-

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dozen machines. Each machine, known locally as the 'Townsend cycle' was reputed for
its sturdy frame, a character that all Enfield bikes would follow.

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THE COMING INTO BEING (1891 1900)


1891, A LITTLE TROUBLE: Townsend got himself into a

bit of financial trouble in about 1890 and called in some


financiers from Birmingham. Unfortunately, they didnt
quite see eye to eye. So Townsend parted ways with the
financiers leaving the company to them. The financiers
then brought in Albert Eadie and R.W. Smith. They took
control of Townsends in November 1891. The following year the firm was re-christened
The Eadie Manufacturing Company Limited. Soon after, Albert Eadie got a lucrative
contract to supply precision rifle parts to the Royal Small Arms Factory in Enfield,
Middlesex.

1892 KICK STARTING ROYAL ENFIELD: A new company was created to market these

new design bicycles called The Enfield Manufacturing Company Limited. By October
1892, the Enfield bikes were announced to the public. The following year the word
Royal (after the Royal Small Arms Company) was added and thus Royal Enfield began.
Then in 1893 the Royal Enfield trademark Made like a Gun appeared. Britain was
caught up in a patriotic fervor and the slogan caught the spirit of the time. In 1899 the
first mechanical vehicle was advertised by Enfield Cycle Company. It was available in
both tricycle and quadric cycle form, powered by a De Dion 1.5 hp engine. The high
wheels, solid tires, block chains and heavy cross frames had by then given way to
Diamond frames, the Hyde Freewheel, Enfield 2 speed hub and the well known Eadie
Coaster. Then came the Riche Model with more refined fittings. By 1907, the cycle

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industry was still headquartered at Redditch,


producing run-of-the-mill conventional cycles.

1897,
QUADRICYCLES: In 1897, R. W. Smith built himself a

quadric cycle a simple bike with four wheels and a


French engine placed under the saddle between the rear
wheels. During the next two years several developments
were made. About then, an Enfield quadric cycle
completed the 1,000-miles road trial of 1900 organized by the Automobile Club of Great
Britain and Ireland. The Enfield vehicle was awarded the silver medal, although it had
its share of troubles and breakdowns.

MOTORCYCLES (1900 - 1910)

1904-

Four Wheelers and Three

Buoyed by success, Smith and Eadie decided to

extend

the range of quadric cycles and tricycles to


include motorcars. The first Royal Enfield cars

were

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

was an

8hp, using a DE Dion engine. The body was made in Leicester and painted yellow hence
car was known as The Yellow Car. But this was just a temporary phase, a wild
romance that was soon to die.

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1909-MOTORCYCLE CRAZE: It would be interesting to

note here that motorcycling was thought to be a


temporary enthusiasm that would soon fade out! A brief
spin on a motorbike then took several hours of
preparations - tuning the tiny water-cooled engine,
getting the tires pumped, the gears oiled and a supply of
spare parts packed. In 1909, Royal Enfield took the
biking world by surprise. At the motorcycle show that year, they displayed a small 2 1/4
hp V twin-engine machine built in the Swiss tradition, which ran very well. A slightly
larger model was developed in 1911. A 2 3/4 hp, with all chain drive incorporating the
well-known Enfield two-speed gear. This model stood up until 1914.
THE ROYAL ENFIELD BIKES (1911

1920)
1911-ENFIELD AND THE WAR

The First World War began in 1914. Royal


Enfield was called on to supply motorcycles to

the

British War Department and even awarded a contract to build bikes for the Imperial
Russian Government during the same period. The machine gun combination and the 6hp
stretcher-carrying outfit were some of the models produced for the war purpose. Enfield
started using its own engines - a 225cc two-stroke single and a 425cc V-twin about this
time. Post-war, it produced a larger 976cc twin and continued to produce the two-speed
225L until 1929. In 1917, the officers of the Womens Police Force were issued with a 2
1/4RE 2 stroke. Interestingly, the models of this period featured 600cc, inlet-overexhaust, closed valve gear, hand-operated oil pump, two-speed countershaft gearbox and

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 56

chain final drive. In the 1913-1914 Enfield V-Twin the lubricating oil was contained in a
glass tank attached to the frame tube that ran from the seat to the rear of the engine. This
worked perfectly and had the added advantage of providing an instant visual check of oil
levels. The 1915 make 675cc in-line 3-cylinder 2-stroke prototype was the worlds first
with this configuration and engine type.
THE INTERWAR YEARS (1921 - 1930)
1924, THE FIRST FOUR-STROKE: The interwar year was

a period when the sidecar reached its zenith. In July


1925, the Royal Enfield V-Twin-engine Dairymans
Outfit took part in the ACU Six Days Trial for
Commercial Sidecars and obtained a Special Certificate
of Merit for completing an arduous course without loss
of marks. The year 1924 saw the launch of the first Enfield four-stroke 350cc single
using a JAP engine.
1928-THE DEPRESSION

In 1928, Royal Enfield adopted saddle tanks and

center-

spring girder front forks one of the first


companies to do so. The bikes now with a
modern appearance and comprehensive range

meant

continuous sales even during the dark days of


depression in Great Britain towards the end of

1930.

In 1927 Royal Enfield produced a 488cc with a four-speed gearbox, a new 225cc sidevalve bike in 1928, and a four-stroke single in 1931. Several machines were produced in

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 57

the next decade, from a tiny two-stroke 146cc Cycar to an 1140cc V-twin in 1937. Can
you even imagine that Royal Enfields range for 1930 consisted of 13 models!
ESTABLISHING BULLET (1931 - 1940)
1933 The Bullet Arrives-In 1931 a four-valve, single-

cylinder was introduced, and christened 'Bullet' in 1932.


It had an inclined engine and an exposed valve gear. It
was then that the first use was made of the now famous
Bullet name. Longer stroke, four-valve head exposed
valves and heavily finned crank case were the features that ran from 1932 until the end
of

1934.

1940 The Second World War-The most well known

offering for the Second World War was no doubt

the

Flying Flea. Also known as the Airborne, this


lightweight 125cc bike was capable of being
dropped by parachute with airborne troupes. The

Flea

was fitted into a steel tubular cage called the Bird Cage, which had a parachute
attached to it. The cage aided in packing turning handlebars easily.
POST WAR BULLETS (1941 - 1950)
1948 Bigger and Better- The 1939 Bullet 350 kick-started the post-war models. They used

two rocker boxes for the first time. This enabled better gas flow and consequently higher
volumetric efficiency. Royal Enfields own designed and manufactured telescopic front
fork placed the Redditch marquee at the very forefront of motorcycle design. The
biggest advancement introduced by the new Bullet was its swinging arm rear suspension
system and hydraulic damper units themselves. In 1947 Enfield made a J2 - the first

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 58

model with a telescopic front end, followed in 1948 by a


500cc twin (Enfield's 25bhp answer to the Triumph Speed
Twin), which stayed in production until 1958.
1949 The Indian Debut- In

1949, the 350cc Bullet was


launched in India, when

Madras Motors won an

order

Army for the supply of

from

the

Indian

motorcycles. It was the beginning of the reign of the Bullet in the subcontinent. The
Madras Motor Company started off by receiving the Bullet in kits and simply
assembling them. Then they began making the frames. After this Enfield started sending
the engine in parts to be assembled in India. Eventually they were also manufacturing
the engines, which meant that they were making the complete bike. For the next thirty
years, the design of their bike remained unchanged! In 1950, several models were
introduced: the 650cc Meteor twin; a 250cc Clipper; a short stroke 250cc Crusader;
250cc Trials; Super 5; Continental; 500 Sports Twin; Super Meteor; Constellation and
the Interceptor.
A TALE OF TWO CITIES (1951 - 1960)
1951-In the UKNever before in British automobile history had so much been done in a

single decade, not just by Royal Enfield, but the every other marquee of the time. All
new engines, all new configurations, new paint schemes, new capacity classes the
motorcyclist had never had such a wide choice ever before. The 1950s saw the market
open up both ways, downwards for smaller capacity, light and maneuverable machines,
and upwards for larger capacity, high powered and reliable motorcycles. The Royal

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 59

Enfield showrooms in the UK saw everything


125cc two strokes to the mighty700ccMeteor.

from

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 60

1955-Meanwhile in MadrasThe Indian Army, the sole reason

why the Bullet was brought to India in the first place, insisted
that they would continue doing business with Madras Motors
only if the Bullet was produced indigenously. The Enfield India
Bullet of the late fifties was quite a different motorcycle from the one we are used to
today. Using the famed Lucas Magdyno ignition system, the 1955 Bullet was almost a
clone of the 52 Redditch Bullet. The frame, electric tin ware and rolling chassis,
however, were to undergo many changes over the next ten years, with the Bullet slowly
evolving into the familiar form we know and love today.
A TALE OF TWO CITIES. NO THREE! (1961 - 1970)
1961-Back

in

the

UKIn

1960, the badge

arrangement with Indian (Of America) had

ended,

so Enfield was no longer sold under the Indian


marquee (Royal Enfield rival, British AMC
company, acquired the Indian Sales Corp. in

1959).

However, in 1961, Eddie Mulder won the Big

Bear

Enduro on an Enfield, which gave the company a new foothold in the U.S. under its own
name and started a new marketing of the product. Models available in the U.S. that year
included a 700cc twin and six street scramblers, ranging from the 250cc Hornet to the
500cc Fury (essentially the single-cylinder Bullet) to the 700cc Interceptor. Elliot Shulz
also dominated the half-mile dirt track in Los Angeles on an Enfield that year. Enfield
won 31 out of 39 races in 1961 and had several spectacular victories in 1964.Royal
Enfield had arrived on The Continent! But things at Redditch had hit a bad patch.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 61

1963-But back home in MadrasBy 1970, Enfield India

was a company established in its own right, and with a


production line going full steam, the need for
collaboration with Enfield of the UK and Villiers of the
UK was no longer seen. But the Bullet flew true and
strong. A number of changes had already been made to
the tin ware on the Bullet. Mudgaurd design took on different forms, taking into account
the wet, slushy and messy road conditions during the Indian monsoon. The Magdyno
also gave way to the alternator Delco ignition system. And front and rear hubs were
designed to provide more efficient cooling for Indian conditions, and thus improve
braking performance.
ALL THAT ENFIELD'S ISN'T A BULLET (1971 - 1980)
1973 The Mini Bullet-With the success of the

Sherpa, Enfield India launched the 173cc


Villiers-powered Crusader in India in 1973. A

totally

indigenous effort, this small motorcycle used

many

Bullet chassis parts, including fork legs and


mudguards, and instantly found a market among

the

many that wanted a Bullet, but were diffident about handling its weight and size. The
Mini Bullet too was introduced this year. This motorcycle was a 200cc two stroke
sporting contemporary design. Enfield India attempted to reach out to the young
market, providing them with a zippy, reliable and economical two-stroke.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 62

TOUGH TIMES AHEAD (1981 - 1990)


1983 HERE COMES THE LIGHTWEIGHTS-Like the adage

that goes, "when the going got tough, that's when the tough
get going". Enfield India got squarely into the fray with a
slew of lightweight machines. The 50cc Silver Plus stepthrough and Explorer motorcycle are launched. Powered by the Zundapp-engineered
50cc, 6.5hp two stroke motors, these bikes redefined the entry-level segment. The Silver
Plus, initially a two-speed and then later a three speed, found a ready market not only
among the young office going male, but among an increasing number of women who
found the step-through design convenient. The Explorer, with its contemporary bikini
fairing and 'fastback' tailpiece. Both bikes sported alloy wheels, a first in India. Close on
the heels of the little wonders came the Fury 175. Powered by a 175 Zundapp two-stroke
engine with a five-speed gearbox, this refreshingly quick motorcycle came fitted with a
hydraulic disc brake. Again a first in the country. And a bike, many feel, much too early
in INDIA.
1984 Brand New Vintages-The 80s also saw the

Bullet

in many different avatars. The Deluxe models


appeared, in resplendent chrome and metallic

colors,

and 12 volt electrical were offered as an option,

to aid

in brighter lighting and easier starting. It was also

the

year when Enfield India grew confident enough about their flagship product to begin
sending 'coals back to Newcastle'. Owing to their status as 'brand new vintages', Enfield
Bullets found a strong niche market in the UK and Europe, among people looking to
come back to motorcycling.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 63

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 64

ENFIELD BECOMES ROYAL ENFIELD (1991 - 2000)


1990 Heavy Fuel-The 1990's saw many revolutionary

models from the company. The Taurus Diesel was the first
production Diesel motorcycle in the world.
1993 Bullet 500-The Bullet 500 was launched in June this

year. It went on to become the most coveted model.


1994 Eicher acquires Enfield-In March the ailing

company got a new lease of life when Eicher

group

acquired Enfield India Company. The company

name

changed to Royal Enfield Motors Limited.


ROYAL ENFIELD (2001 - 2010)
2001-The Dare Devils, the motorcycle display team of the

Corps of Signals, Jabalpur forms a Human Pyramid of 201


men on 10 Enfield 350cc bikes and rides a distance of more
than 200 meters.
2002- Indias first Cruiser The THUNDERBIRD- is launched.BBC Wheels awards it

The Best Cruiser 2002 title. The Bullet Machismo enters commercial production. Dan
Holmes and Johnny Szoldrak won the National Road Race Championship (60s Class)
on a Bullet.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 65

2003

The first RIDER MANIA gets together is held in

Goa.

REDS are formed in Pune. The Bullet enters the


Automotive Hall of Pride at the ICICI Overdrive
awards. 1000 Riders descend on Redditch for the

Royal

Enfield Owners Club 25th Anniversary. Royal Enfield is one of the top ten 125-500 cc
brands in UK.

2004-

The

2004

Bullet

Electra

is

launched.

The retro styled Bullet Machismo is rated No.1Cruiser in


TNS Auto car survey.The Bullet Electra International with a
lean-burn engine is launched in the UK.34 men ride
simultaneously on a Bullet, setting a new world record.

2005- Royal Enfield India Celebrates 50

glorious years of motorcycling and unveils

blueprint for the future. The 2005 Bullet


Electra features a revolutionary 5-Speed left side gear shift that makes the marquee more
accessible to motorcyclists. The Legend rides on

2006- Royal Enfield develops a fully integrated Twin Spark, 5-Speed engine that delivers

a dramatic increase in performance and efficiency. The new engine will power all
domestic and International models from 2007 onwards.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 66

2007-

Royal

launches

the

limited

Enfield
all

new

edition

Machismo 500LB with


customized

accessories.

The legendary Bullet 350 needs no introduction. Now Bullet 350 is with all new UCE
engine. This classic machine has kept place with advances in engineering and
ergonomics without diluting its impeccable pedigree.
A long wheel base and bigger tires provide increased stability and road grip, making it
ideal for long distance travel.Its aristocratic black & gold livery and thumping engine
beat remind passers-by that they are in the presence of automotive royalty.

2008- The Thunderbird Twins Park will be the

first

model to feature Royal Enfields revolutionary

Unit

Construction Engine. All the well loved

features

of the Thunderbird have been retained and


enhanced in some cases. Also, the twin benefit

of

improved performance and engine efficiency makes this motorcycle hard to beat in
terms of pure riding pleasure and visual delight. The evolutionary mix of old and new
features in this motorcycle will surely delight its owners.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 67

2009- The smaller twin of the Classic 500, the

Classic 350 will hold its own against any other


motorcycle and then pull some more. The
Classic 350 shares its power plant with the
Legendary Thunderbird. The torque to flatten
mountains and the fuel
efficiency

to

cross

entire ranges comes in


the same understated yet charming styling. This is a motorcycle that does not need to
shout to be heard. Born of a rich heritage and bred with Royal Elegance this 350cc
thumper has all the qualities of a typical Royal Enfield. Appreciated then, appreciated
now. Why ride a lesser bike. Nothing more to be said
The Classic 500 comes to India.
Armed with a potent fuel injected

500cc

engine and clothed in a disarmingly


appealing

post

war

styling,

this

promises to be the most coveted Royal


Enfield in history. For those who want

it all.

The power, the fuel efficiency, the


reliability and simple, yet drop dead gorgeous

classic

styling. The classic turns heads not because it wants

to but

because it cant help it. You will appreciate the beat

not

just for the music it creates but also for the muted feeling of strength and power that it
signifies. The view is simply better when you are astride a Royal Enfield Classic 500
whether moving or still. Nothing more to be said.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 68

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 69

ORGANISATIONAL STRUCTURE

GENERAL MANAGER
(Proprietor)

Sales Manager

Service Manager

Service Manager

Showroom

Service

Accountant

In charge
charge

Supervisor

Team

Service

Assistant

Manager

Staffs

Accountant

Sales
Representative

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 70

SWOT ANALYSIS

SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY

STRENGTHS

Established brands
Strong Brand Name
Fuel efficient
Style statement
Convenient in heavy traffic
Cheap and affordable
Easy and cheap finance
availability
Patents
Good reputation among
customers

WEAKNESSES
Extremely price sensitive
Short PLC
High R and D costs

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 71

OPPURTUNITIES
Growing premium segment
Increasing dispensable
income
Environmental concerns
Exports increasing
Very strong demand in the
100cc. segment dominated by
limited players.

THREATS
The Rs.1 Lakh car
Cut throat competition
Increasing number of players in
the market
Rising raw material costs
Increasing rates of interest on
finance

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 72

SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA

STRENGTHS
Size and scale of parent
company
Effective Advertising
Capability
Committed and dedicated
staff
High emphasis on R and D
Experience in the market
Established brand
Established market channel
Power, Speed & Acceleration

OPPURTUNITIES
Growing premium segment
Global expansion into the
Caribbean & Central America
Expansion of target market
(include women)
Increasing dispensable
income
1st mover advantage

WEAKNESSSES
Small showrooms
Not much emphasis on
aggressive selling
Weak product diversity

THREATS
Cut throat competition
Increasing number of players in
the market
Rising raw material costs
Increasing rates of interest on
finance

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 73

CHAPTER 4

DATA ANALYSIS
AND
INTERPRETATION

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 74

THE PROFILE OF THE RESPONDENTS BASED ON AGE


AGE
20-24

NO. OF RESPONDENTS
30

PERCENTAGE
40%

25-29

19

26%

30-34

14

18%

Above 35

12

16%

TOTAL

75

100%

Table no.1

Above 35; 16%


20-24; 40%
30-34; 18%

25-29; 26%

Graph
no.1

Analysis
From the above table it is clear that 40% of the respondents are aged between 20 and 24,
26% between 25 and 29, 18% between 30 and 34 and only 16% aged above 35 years.
Interpretation

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 75

It is revealed that majority of respondents are between 20 and 29 years. From this we
can conclude younger generation and middle age are more interested in Royal Enfield
may be because this is the age where they start earning.

THE PROFILE OF THE RESPONDENTS BASED ON AGE


GENDER

NO. OF RESPONDENTS

PERCENTAGE

MALE

69

92%

FEMALE

8%

TOTAL

75

100%

Table no.2

8%

Male

Female

92%

Graph no.2

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 76

Analysis
From the above table it is clear that 92% of respondents were male and female
respondents constituted just 8% of total responses.
Interpretation
It is clear that most of the users of Royal Enfield are males mostly because of the manly
look of the bikes.

THE ANNUAL INCOME GROUP OF RESPONDENTS


INCOME GROUP

NO. OF RESPONDENTS

PERCENTAGE

LESS THAN 1,20,000

39

52%

1,20,001-3,60,000

10

14%

3,60,001-7,20,000

14

18%

ABOVE 7,20,000

12

16%

TOTAL

75

100%

Table no.3

16%
18%
Less than 1,20,000

52%

1,20,001-3,60,000

3,60,001-7,20,000

Above 7,20,000

14%

Graph no.3

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 77

Analysis
From the above table it is clear that 52% of the respondents had an annual income of
lesser than 1,20,000, 18% had income between 3,60,001 and 7,20,000, 16% earned more
than 7,20,000 per annum and 14% had income between 120001 to 3,60,000.
Interpretation
It shows that Royal Enfield is placing their products in the appropriate and reasonable
price range and the people of income bracket less than 1,20,000 can easily afford this
Bike.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 78

THE MODEL OF THE ROYAL ENFIELD THE


RESPONDENTS PRESENTLY OWN
MODEL
BULLET 500
THUNDER BIRD
BULLET ELECTRA
MACHISMO 500
BULLET 350
CLASSIC 500/350
OTHERS
TOTAL

NO. OF RESPONDENTS
11
7
15
6
16
17
3
75

PERCENTAGE
14%
10%
20%
8%
21%
23%
4%
100%

Table no.4
18

16

15

16

17

14
12

11

10
8
6
4

6
3

2
0

Graph no.4

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

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 79

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

THE PURCHASING WAY OF THE CUSTOMERS


PURCHASED BY
CASH
LOAN
TOTAL

NO. OF RESPONDENTS
54
21
75
Table no.5

PERCENTAGE
72%
28%
100%

60
50
40
54

30
20

21
10
0

CASH

LOAN

Graph no.5

Analysis
From the table it clearly shows that the products of Royal Enfield are in the acceptable
price range, as we can see that purchasing way of the 72% respondents are leading in the

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 80

CASH sector and 28% on loan basis. Customers are ready to pay for better facilities and
technology and they feel that all bikes deserves that price which Royal Enfield is
offering.
Interpretation
It is clear that customers are easily affording the price of Royal Enfield bikes and they
are not feeling much problem with the amount.

THE NO OF RESPONDENTS CONSIDERING OTHER


MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD
BIKE
YES/NO
YES
NO
TOTAL

NO. OF RESPONDENTS
27
48
75
Table no.6

PERCENTAGE
36%
64%
100%

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 81

70%
60%
50%
40%
30%
20%
10%
0%
YES
NO

Graph no.6

Analysis
From the table it clearly shows that 36% of the respondents did go consider or checked
for an alternative motorcycle and 64% of them did not consider any other motorcycle
while purchasing their Royal Enfield bike.
Interpretation
It is clear that majority of the customers directly chose Royal Enfield as their bike and
dint even have a look at the nearest alternative bike and this shows the loyalty of the
customers towards the brand Royal Enfield.

THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE


BUYING THEIR ROYAL ENFIELD BIKE
MEDIA

NO. OF RESPONDENTS

PERCENTAGE

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 82

NEWSPAPERS

8%

MAGAZINES

24

32%

FRIENDS

11

14%

ROADSHOW

10%

TV ADDS

6%

WEBSITE/BLOGS

15

20%

SHOWROOM

10%

TOTAL

75

100%

Table no.7
35%
32%

30%

25%

20%

20%

15%
14%
10%

10%

10%

8%
5%

6%

0%

Graph no.7

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 83

Analysis
As we can see here the major promotional tool which is influencing the customers is
Magazines and Website which is around 32% and 20% respectively, after that the source
of awareness among customers is a mixed response where in 14% from friends, 10%
each from road shows and showroom, finally newspapers consists 8% and 6% from
Television adds which is very poor.
Interpretation
It clearly shows that Advertisements are rarely recalled and are highly ineffective
amongst non-Bullet riders. Its clear that Royal Enfield should concentrate on its
advertising campaign to reach the customers.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 84

THE MILEAGE OF ROYAL ENFIELD AFTER PURCHASEING


MILEAGE

NO. OF RESPONDENTS

PERCENTAGE

45km/lit & Above

6%

40-45

16

22%

35-40

26

34%

18
10
75
Table no.8

24%
14%
100%

30-35
Below 30
TOTAL

30
25
20
15
10
5
0

45km/lt

40-45

35-40

30-35

Below 30

Graph no.8

Analysis
From the above table it is clear that 56% of respondents gain mileage of 35-45km/lit
which is really good, 24% of them between 30-35km/lit, 14% below 30km/lit and 6%
above 45km/lit.
Interpretation

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 85

It clearly shows that mileage of the Royal Enfield bikes is economical & mileage
between 35 and 40 that too on Indian roads with heavy traffic is a great deal.

THE BREAKDOWN OF BIKES SINCE PURCHASE OF


VEHICLE
FREQUENCY OF
BREAKDOWN
VERY OFTEN
RARELY
NOT AT ALL
TOTAL

NO. OF
RESPONDENTS
8
19
48
75
Table no.9

PERCENTAGE
10%
26%
64%
100%

Very often; 10%

Rarely; 26%

Not at all; 64%

Graph no.9

Analysis

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 86

From the above table it is clear that 64% of the respondents say that there is no problems
or breakdown of their bikes after purchase, 26% say rarely their bikes get repaired and
10% of respondents say their bikes breakdown very often.
Interpretation
It is clear that most of the Royal Enfield bikes doesnt breakdown at all and it is not
problematic and not involved into repair always

THE AVAILABILITY OF SPARE PARTS IN THE MARKET


AVAILABILITY
READILY AVAILABLE
DONT GET THEM
READILY
DONT HAVE GOOD
SPARES SUPPLY
MAJOR HEADACHE
TOTAL

NO.OF RESPONDENTS
51

PERCENTAGE
68%

10%

12

16%

4
75
Table no.10

6%
100%

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 87

Major headache; 6%
Don't have good spares supply; 16%

Don't get them readily; 10%


Readily Available; 68%

Graph
no.10

Analysis
From the above it is clear that 68% of the respondents are satisfied with the availability
of spare parts and remaining 32% of respondents are discontent with the availability of
spare parts.
Interpretation
It is clear that majority of the respondents are satisfied with spare parts availability and
we can say that Royal Enfield has good distribution channel for spare parts in the city.

THE MAJOR PROBLEMS AFTER PURCHASING ROYAL


ENFIELD BIKE
PROBLEMS
HIGH MAINTENANCE

NO. OF RESPONDENTS
11

PERCENTAGE
14%

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 88

POOR AFTER SALES


SERVICE
HIGH PRICE

10%

15

20%

LOW MILEAGE

10%

NOISY VEHICLE
NO PROBLEM
TOTAL

3
31
75
Table no.11

4%
42%
100%

14%
High maintainance

Poor after sales service


42%

High Price
10%

No problem

Low mileage

Noisy vehicle

20%
4% 10%

Graph
no.11

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

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 89

It is clear that majority of the people who choose Royal Enfield as their bike doesnt
have any problems or issues with their bikes performance.

THE RATING BY THE RESPONDENTS FOR THEIR


SATISFACTION LEVEL WITH RESPECT TO POWER & PICK
UP
RATING
POOR
AVERAGE
GOOD

NO. OF RESPONDENTS
4
8
20

PERCENTAGE
6%
10%
26%

43

58%

EXCELLENT

TOTAL

75
Table no.12

100%

50
43

45
40
35
30
25

20

20
15
8

10
5

Graph
no.12

Analysis

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 90

From the above table it is clear that 6% of the respondents rated very poor and they were
not at all satisfied, 10% of them rated average, 26% of them rated good and maximum
number of respondents i.e. 58% rated excellent and these respondents were very much
satisfied with their bikes power and pick up.
Interpretation
It is clear that majority of the respondents are satisfied with their bikes power and pick
up. This shows Royal Enfield has an excellent satisfaction level within the customer.

THE RATING BY THE RESPONDENTS FOR THEIR


SATISFACTION LEVEL AFTER SALES SERVICE
RATING

NO. OF RESPONDENTS

PERCENTAGE

POOR

11

14%

AVERAGE

13

18%

GOOD

27

36%

EXCELLENT

24

32%

TOTAL

75
Table no.13

100%

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 91

30
25
20
27

15
10

11

24

13

5
0

Poor

Average

Good

Excellent

Graph
no.13

Analysis
From the above table it is clear that 14% of the respondents rated very poor and they
were not at all satisfied, 18% of them rated average, 36% of them rated good and
maximum number of respondents i.e. 32% rated excellent and these respondents were
very much satisfied with the after sales service.
Interpretation
It is clear that majority of the respondents are satisfied with their after sales service and
few respondents are not at all satisfied. This shows Royal Enfield has a good satisfaction
level within the customers.

THE RESPONDENTS OPINION ABOUT PARTICIPATING IN


THE RIDER MANIA ORGANIZED BY THE ROYAL ENFIELD
CLUB
YES/NO

NO. OF RESPONDENTS

PERCENTAGE

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 92

YES
NO
TOTAL

62
13
75
Table no.14

82%
18%
100%

18%

Yes

No
82%

Table
no.14

Analysis
The above table shows that 82% of the respondents are wants to participate in the Rider
Mania and 18% of them are not interested.
Interpretation

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 93

It clearly shows that majority of the respondents are very much interested in Rider
Mania and also shows that respondents are very passionate Enfield fans.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 94

CHAPTER 5
FINDINGS, CONCLUSION
AND
SUGESSTIONS

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 95

FINDINGS
1. It is revealed that majority of users are between 20 to 29 years. From this we can
conclude younger generation and middle age are more interested in Royal Enfield
may be because this is the age where they start earning.
2. It is clear that most of the users of Royal Enfield are males mostly because of the
manly look of the bikes.
3. Users are mostly Professional males, 20-35 years of age including some students
because of the looks and power of the bike.
4. Royal Enfield is placing their products in the appropriate price range. As the

5.

people of this income bracket less than 1,20,000 can easily afford this Bike.
Customers are not attracted to only one particular model due to the variants
available and because the Classic 500/350 is the newly released models they are

fast moving now.


6. Customers are easily affording the price of Royal Enfield bikes and they are not
feeling much problem with the amount and purchasing way of most of the
customers is leading in cash sector.
7. Majority of the customers directly chose Royal Enfield as their bike and dint even
have a look at the nearest alternative bike and this shows the loyalty of the
customers towards the brand Royal Enfield.
8. Advertisements are rarely recalled and are highly ineffective amongst non-Bullet
riders. Its clear that Royal Enfield should concentrate on its advertising campaign
to reach the customers.
9. It clearly shows that mileage of the Royal Enfield bikes is economical & mileage
between 35 and 40 that too on Indian roads with heavy traffic is a great deal.
10. Most of the Royal Enfield bikes doesnt breakdown at all, it is not problematic
and not involved into repair always.
11. It is clear that most of the respondents prefer to buy their bike brand new from
showroom only and majority of the customers are very much satisfied with the

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 96

place of purchase of their Royal Enfield bike. This also shows there is more
demand for new bikes.
12.
It is clear that majority of the respondents are satisfied with spare parts
availability and we can say that Royal Enfield has good distribution channel for
spare parts in the city.
13.
It is clear that majority of the people who choose Royal Enfield as their
bike doesnt have any problems or issues with their bikes performance.
14. Majority of the respondents are satisfied with their bikes power and pick up. This
shows Royal Enfield has an excellent satisfaction level within the customer
15. Majority of the respondents are satisfied with their bikes comfort and safety. This
shows Royal Enfield has an excellent satisfaction level within the customers.
16. Majority of the respondents are satisfied with their after sales service and few
respondents are not at all satisfied. This shows Royal Enfield has a good
satisfaction level within the customers.
17. It is clear that People who choose not to buy Bullets do so because of low
promotion, high price and maintenance. So Royal Enfield should concentrate on
their promotional campaigns and make sure it reaches the common man.
18. It is clear that most of the respondents service their bikes in the showrooms and
also with a well known bullet mechanic. There is no much difference but this
shows people have less trust with the showroom service.
19. Most of the respondents agree that the company takes action towards the
complaints lodged by the customers and also the satisfaction level of the
customers is very high. This shows Royal Enfield checks at the complaints
registered by their customers on regular basis to maintain its brand value.
20. Majority of the respondents are very much interested in Rider Mania and also
shows that respondents are very passionate Enfield fans.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 97

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 98

CONCLUSION
The study has helped Royal Enfield dealers to understand whether the customers
are satisfied or not. If not what are main reasons for dissatisfaction of customer towards
the dealer and what are the ways of improving the satisfaction level of customer towards
dealer.
We can conclude younger generation and middle age are more interested in Royal
Enfield, the buying behavior is governed predominantly by the need for Power and
respect for the iconic Brand and users are mostly Professional Males, 20-35 years of age,
including some students. Most of the customers are attracted to newly released Classic
350/500, also customers are easily affording the price of Royal Enfield bikes and
customers are very loyal towards the brand Royal Enfield.
Royal Enfield should concentrate on its advertising campaign to reach the
customers, mileage of the Royal Enfield bikes is very economical and most of them
prefer to buy their bike brand new from showroom with the spare parts available in
market easily.
Royal Enfield has an excellent satisfaction level within the customer for its power,
pick up, comfort, safety and with after sales service.
It is clear that Royal Enfield checks at the complaints registered by their
customers on regular basis to maintain its brand value and entire Royal Enfield owner
are passionate Royal Enfield fans.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 99

SUGGESTIONS
Aggressive selling- The Company should follow an aggressive selling concept. A
non-aggressive selling concept which is clearly visible in its advertising campaign
which does not hit on the customer rather aims to provide information in a subtle
manner.
Promotional campaign- The Royal Enfield ads seen on electronic and print media
are absolutely out of touch with the Indian culture and thought process. An Indian
consumer irrespective of their income level has a soft corner for traditions and
culture of India. Hence, all companies including market leaders like Hero Honda
and Bajaj capitalize on this behavior of customers and design their ad campaigns
keeping India in mind.
Weak follow up from dealerships- It was observed during the study that Royal
Enfield was quite weak in following up with prospective customers.
Measures should be taken to improve its dealership- Showrooms are very small in
size and do not reflect the quality and scale of Royal Enfield in the market.
Should improve the after sales service- During the survey it was found that Royal
Enfield is not satisfying all their customers in after sales services, employees at
dealership sometimes use harsh words and become rude to the customers, parts of
the bike are not easily available in the market. This is the major drawback in
capturing the market share so Royal Enfield should take some better steps to
satisfy and retain their customers.
Increase in customer query response- During the study it was found that dealers
are not satisfying the queries of customers and so suggested to increase customer
query response by dealers.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 100

Youth oriented promotion- Company should focus more on younger generation as


it can increase sales and market share in Varanasi.
Purchasing way of customers- Customers are easily affording the price of Royal
Enfield bikes and they are not feeling much problem with the amount. But the
company should also take some steps towards making purchase easier through
bank loans and EMIs.
Marketing communication- It should focus on satisfying the needs for Respect,
Power, Safety and Comfort.
Brand ambassador- A non-flamboyant well-built brand ambassador may be
chosen to represent the Brand. It is necessary for Royal Enfield to have a brand
ambassador from India to connect with the Indian customer.
Build iconic status- Royal Enfield should concentrate on building around the
iconic status it already enjoys if it plans to attract customers migrating to other
manufacturers.

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 101

ANNEXURE

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 102

QUESTIONNAIRE
I am Prashant Dubey, IIIrd Semester MBA student from Faculty of Management
& Technology, Harishchandra Post Garduate College, Varanasi. This information is
required for successful completion of my project A Study on Customer Satisfaction
towards Royal Enfield bikes, Bangalore I request you to kindly spare some of your time
and fill the questionnaire below.
RESPONDENT INFORMATION
Name: .....................................................................................................................
Age: ................................. Gender :

Male

Female

1. Occupation:
Student

Government service

Professional

Self employed

other

2. Annual Income:
Less than 1, 20,000

1, 20,001-3, 60,000

3, 60,001-7, 20,000

Above 7, 20,000

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


Bullet 500

Thunder Bird

Bullet Electra

Machismo 500

Classic 500/350

others

Bullet 350

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 103

4. How did u purchase the bike?


Cash

Loan

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

No

6. Please specify your source of awareness of Royal Enfield while buying your bike?
Newspapers

Magazines

Friends

Road shows

TV Adds

Website/blogs

Showroom

Others

7. Please specify your bikes mileage?


45km/lit & above

40-45

35-40

30-35

- Are you satisfied with the bikes mileage?


Yes
No
8. Frequency of breakdown of your bike?

Below 30

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 104

Very often

rarely

Not at all

9. Any major problems after purchasing Royal Enfield bike?


No problem
Noisy vehicle
High maintenance

Poor after sales service

High price

mileage

10.How many stars will u rate for your satisfaction level with respect to power

and

pick up of your Royal Enfield bike?


Poor

Average

Good

Excellent

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

Average

Good

Excellent

12.Would you like to participate in the Rider Mania organized by the Royal Enfield
club?
YES

NO

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 105

13.Any suggestions

Thankyou

BIBLIOGRAPHY
Books Referred
Marketing Management, 13th edition

- Philip Kotler

Survey Research Methods

- Charles Babbie

Magazines Referred
The Bullet-In, The Magazine For All Royal Enfield Bullet Enthusiasts.
Royal Enfield Magazine, The BEAT.

Websites Referred
www.google.com
www.royalenfield.com

F a c u l t y o f M a n a g e m e n t a n d Te c h n o l o g y , H C P G | 106

www.wikipedia.org
www.enfieldmotorcycles.com
-X-

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