Acknowledgements

We would like to thank all the people who were involved with this project and whose support and encouragement helped us complete the project. Indeed working on this project has been a truly enriching experience for us as a team.

We are extremely grateful to Professor K. J. Jaims for entrusting our group with this huge responsibility. We wish to express a profound sense of gratitude to Prof. Jaims for his generous suggestions and valuable insights, without which this project would not have been a success.

We would like to thank Mr. Rashid, Bullet mechanic, Manipal for his help in providing the necessary impetus in the exploratory phase.

We also wish to express our thanks to Mr. Imran Jeddy, Ms. Deepti Jacob, Mr. Arijit Bhattacharya, Mr. Sandeep Menon and Mr. Arun for their constant support and help in providing us invaluable data and insights during the exploratory phase of this project.

Last but not the least, we would like to thank all the respondents and our team members who participated and contributed towards the successful completion of this project.

Executive Summary

Research Objectives
The Research is aimed at the study of attitudes of Bullet Riders in Manipal. Bullet, or the Royal Enfield stable of motorcycles have been an iconic brand in India. Every year, they have sold modest numbers but despite low numbers, they continue to command a position of respect and awe in the Indian motorcycle market. The objective of the study was to establish a psychological and demographic profile of the Bullet Riders.

Concise Statement of Method

The Research was done in a number of Phases of study. An initial Focus Group Discussion was conducted online with members of Bullet Clubs from across the country. Each of these riders have more than 40,000 km to their credit and are respected across the country in the Bullet community. The findings from the FGD were taken into consideration to develop a questionnaire which was subsequently filled up by Bullet riders from Manipal and other cities of the country and also by Non-Bullet riders from Manipal. The data collected was analyzed both quantitatively and qualitatively to arrive at a representative customer profile for Royal Enfield motorcycles.

Summary of Findings
Despite our best efforts, we could collect data only from 17 Bullet riders and 20 users of other two-wheelers. We used Cluster Analysis, Multi-Dimensional Scaling, Factor Analysis for segregation of the collected data into identifiable attitude determining portions.

From the study, we found that 1. Most Bullet riders exhibited Value-Expressive behavior while few others showed Ego-Defensive attitudes. 2. While there was a wide range of age groups and backgrounds for people who used Bullets and other RE motorcycles, most riders seemed to associate the motorcycle with a sense of freedom and respect. 3. Most people exhibited an internal locus of control, quite contrary to the macho strong-man image non-users held of the bike. 4. Most non-users turned out to be a price sensitive group with a slight tendency towards an Ego-Defensive attitude with respect to strength. 5. There was also a dismally low recall of advertising campaigns by the company. 6. Quite a few riders also expressed that they might be willing to pay a premium for the RE motorcycles as it is the feel of the bike and not the price that dictated their choice. 7. The customer is seen a male professional, around 25 years of age, with a strong internal locus of control.

Conclusion
1. Bullet riders are mostly Value-Expressive, with an internal locus of control and a strong sense of independence. 2. The company has been cashing in on the iconic status it has and has done little to reinforce its image amongst an exploding two-wheeler market. 3. The pricing of the motorcycle might also be looked upon as conservative.

Recommendations
Royal Enfield has for a while now targeted the youth market with lure of freedom. However, they have done little to reinforce their position. Maybe advertising campaigns targeted at the Value-expressive customer would enable the brand to reap the benefits of its iconic position in a much more productive way. Also, most users find it imperative for the company to improve its After Sales Service and Spares availability.

Table of Contents
Introduction ................................ ................................ ................................ ................................ ...... 6 Indian automobile industry................................ ................................ ................................ ............ 6 Indian two wheeler market................................ ................................ ................................ ............ 6 Profile of the Organization ................................ ................................ ................................ ............. 8 Profile of the Products ................................ ................................ ................................ ................... 9 Rationale for the Project ................................ ................................ ................................ .............. 11 Objectives ................................ ................................ ................................ ................................ .... 13 Scope/Terms of References ................................ ................................ ................................ ......... 13 Definition of Constructs ................................ ................................ ................................ ............... 13 Internal Parameters Customers Internal Locus of Control ................................ ..................... 14 External Parameters Influncers, Marketing and Company................................ ...................... 14 Research Methods and Procedures................................ ................................ .............................. 15 Data Analysis and Findings................................ ................................ ................................ ............... 17 Demographics ................................ ................................ ................................ .............................. 17 Occupation ................................ ................................ ................................ .............................. 17 Gender................................ ................................ ................................ ................................ ..... 17 Annual Income................................ ................................ ................................ ......................... 18 Bike Ownership ................................ ................................ ................................ ........................ 18 Age ................................ ................................ ................................ ................................ .......... 19 Classification of Bullet riders and Non-Bullet riders based on Demographic Data ..................... 19 Quantitative Analysis ................................ ................................ ................................ ................... 21 Perception about Spare Parts Availability................................ ................................ ................. 42 After Sales Service................................ ................................ ................................ .................... 42 Barriers of Purchase................................ ................................ ................................ ................. 43 Media Habits................................ ................................ ................................ ............................ 43 Other findings ................................ ................................ ................................ .......................... 46 Qualitative Analysis................................ ................................ ................................ ...................... 48 Conclusion and Recommendations ................................ ................................ ................................ .. 50 Limitations................................ ................................ ................................ ................................ ....... 51

References................................ ................................ ................................ ................................ ....... 52 Appendices53 Questionnaire..53

Introduction

Indian automobile industry

The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, 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 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 twowheeler manufacturers in the country, and they are Bajaj, Hero, Hero Honda, Honda, Mahindra/Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha.

There have been various reasons behind this growth. Because of poor public transport system, the citizens found convenience in two wheelers. Added to this is the fact that the average Indian still does not have the purchasing capacity for a more expensive, four wheeler.

The story of Mr. Ratan Tata inspired by a family of four members travelling in Indian roads, not concerned about safety and the evolution of the idea of TATA Nano has been quite famous globally.

The Indian two wheeler industry 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 ecofriendliness 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 that ones son rides to college.

With rising incomes and purchasing capacity of the average Indian, the demand for two wheelers in the power segment has increased considerably. There also have been constant signs of maturing of the market when the manufacturers reacted by coming up with innovations, catching attention of potential buyers and sometimes creating a new class of customers or altering the preferences and attitudes of existing consumers

Profile of the Organization

Royal Enfield are the makers of the famous Bullet brand in India. Established in 1955, Royal Enfield (India) is among the oldest bike companies. It stems from the British manufacturer, Royal Enfield at Redditch. Royal 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 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.

 Pr il Prduc
Royal Enfield Bullet 350

One can be a part of classical prominence by having a ri e on Royal Enfiel B llet 350, a macho bi e which is stylish as well he brawny is laden with plenty of

attention grabbing feat res li e traditional designing, astonishing power of 18 bhp from a ir cooled, 4 stroke engine, large wheels, and better sitting for super ior riding. his has been the classical offering from Roya l

Enfield and the engineering and the design has remained unchanged over the years. It has remained the flagship product with the other products being perceived more asder ivatives of this motorcycle rather than standalone products.

Royal Enfield Bullet 500 (Cast Iron)

Royal Enfield Bullet 500 is a classic bike having vintage styling. he bike has hand-painted pin

stripes, a 4-speed transmission, double leading shoe front brake and was tout ed as the powerhouse model with a whopping 27 bhp output. While the bike looked mostly similar to the Standard 350cc offer ing, its bigger engine made it a more potent vehicle to have on long rides.

Royal Enfield Bullet Electra 4S Royal Enfield motorcycles were renowned for having problems starting because of their CB Point Ignition systems. In an attempt to break this negative image, the company came up with Electra. Electra was in effect a Standard 350cc but had a C I Ignition system. his paved the way for the newer bikes from Royal Enfield which now have Digital CI as a a part of the standard package.

Royal E i l Ligh i g Looking for an image makeover back in 2001, Enfield came up with Lightning. It was a Limited Edition 535cc motorcycle. The singlecylinder, air-cooled 535cc engine was the largest SCAC engine for any motorcycle in the world. The bike received limited acceptance amongst users and was discontinued after 2006 but it succeeded in rebuilding the power-bike image of Royal Enfield amongst the enthusiasts.

Royal E i l B ll

El

a With Electra 4S receiving quite a lot of acceptance, Royal Enfield decided to add a few more features to align themselves with the more contemporary manufacturers. From a right-hand side 4-speed gear shift, they moved to a left-hand side 5-speed gear shift. Disc brakes also made an entry, with the 280mm disc being the largest in

the country. This has been one of the most successful models from Royal Enfield and was to a large extent responsible for the revival of the brand during the turn of the millennium.

Royal E i l B ll

Machi mo

Machismo is Royal Enfields chrome monster. Resplendent with chrome, they are available in both 350cc and 500cc variants. They were the first bikes to have the now legendary Lean Burn AVL Engines. These were the result of Royal Enfields collaboration with an Austrian Engine manufacturer, AVL.

Royal E i l Th

bi

Bik Bullet look. They were modeled similar to the cruisers available worldwide and were positioned as a tourers choice. It has developed into a strong marquee itself and continues to remain a brand name despite engineering changes that went into it. It started as a 350cc AVL Single-Spark Engine. Today the

Royal Enfield Thunderbird is a powerful bike which for the first time broke off from the

Thunderbird Twinspark is a 350cc Unit Construction Twin-spark Engine with about 20 bhp output.

Royal E i l

lassic

In 2008, Royal Enfield unveiled its latest offerings the Classic 350 and the Classic 500.Styled in the vintage 50s look, they came with 18 inch tyres, Unit

Construction engines and the look and feel of a vintage. Priced at 1.3 lakhs and 1.7 lakhs respectively, the 350cc and the 500cc variants are slowly gaining

popularity amongst users for the lower ride height, the greater power and above all, the vintage feel of the bike.

Rationale for the Project

Royal Enfield motorcycles have for a long time held the fancy of Indian two-wheeler users. However, this awe and enthusiasm has not really translated into sales for the company. On a superficial level, it seems that this may be caused by high prices, low fuel-efficiency, and maintenance issues. However, it was felt that this can be caused by a strong disconnect between the perception of the motorcycles from Royal Enfield amongst the users and the value proposition from the company.

To begin with, we asked ourselves the following questions:

y y y

Were people riding Bullets to flaunt affluence? Were people riding Bullets because girls found it cool? Were people riding Bullets to project an intimidating image?

Or
y y y

Were people riding Bullets because they loved the thump? Were people riding Bullets because the open road beckoned to them? Were people riding Bullets because of the natural respect that it commanded?

There were intuitive answers supporting both hypotheses and the only way to find out the validity of either was to actually find out from the users why they used these motorcycles in favor of the wide range of offerings from the other motorcycle manufacturers. Customer Attitude, with respect to iconic brand often varies between the Ego-Defensive and the Value-Expressive. The Ego-Defensive customer wants to protect his/her self-image from inner feelings of doubt. They look to replace their uncertainty with a sense of security and personal confidence. These are people who are overly concerned with the Look of the product or its perception amongst others. They often display Veblenian, Snobbish or Bandwagon buying behavior where their buying decision is shaped by social considerations more than economic ones. By sharp contrast, the Value-Expressive customers attitude is a reflection of the customers general values, lifestyle and outlook. They have a strong internal value system that gets reflected in their choice and thus their choice has an internal locus of control, often resilient to external perceptions. The research was an attempt to classify the Bullet riders into one of these two criteria because Marketing Communication would by and large depend upon which segment the product is targeted at.

Objectives
As discussed, the objective of the research may be summarized as follows: 1. To arrive at the psychographic profile of Bullet Riders in Manipal 2. To ascertain the factors that affect the choice of a Bullet as a motorcycle 3. To ascertain the barriers to purchasing a Bullet for a prospective customer 4. To derive the perception of Bullet as a motorcycle amongst respondents vis--vis other brands 5. To propose an effective Marketing Communication plan for brand Royal Enfield

Scope/Terms of References
The study regarding an iconic brand that is more than 100 years old opens up boundless possibilities. Given the magnitude of the project and resource limitations, we have defined the scope of the study to include 1. Psychographic and Demographic profile of Bullet riders 2. Factor analysis of the parameters on which the purchase decision has been based 3. Locating the barriers to purchasing a Bullet for a prospective customer 4. Finding out the perception of After Sales Service and Spares amongst users 5. Mapping the perception of the Bullet on various parameters vis--vis other brands 6. Deriving the media exposure of the Bullet riders for planning Communication The results are limited by the numbers and are in no way exhaustive, but only serve as in indication or a pilot study for a similar study that may be performed on a much larger scale.

Definition of Constructs
In the initial brain storming sessions, various parameters were considered important to a riders choice of Bullet as a vehicle and the various prime movers behind these parameters were discussed. These parameters were broadly classified as a) Internal parameters (Ones that stems from the users notions and internal values) b) External parameters (Ones that depend on Marketing Communication and others perception of the user) While most riders seemed to be influenced by both, the Ego-Defensive riders display a greater tendency to be influenced by the external parameters. They look for the macho image of the Bullet to rub off on them. The Value-Expressive users look for the sense of freedom in the bike and the long rides that come with it.

Internal Parameters Customers Internal Locus of Control Considering that Power Bikes are expensive, various features need to be compared, and they

are expected to be used for a considerable period of time, purchase of bikes come under complex consumer behavior decisions. The consumer behavior under such cases can be defined in 4 steps namely: 1. Need A ousal / P oblem Recog i ion In this stage, the customer recognizes the need for a bike based on his current situation. Study of this phase helps us identify the various needs of customers, which needs they prioritize, ability to satisfy needs, how they satisfy their needs etc. 2. earch or nformation Once the customer identifies his need for a product, he searches for information related to the product before purchase. A study about this phase can evolve insights into which medium to use to reach the customer, what communication mediums to use, influencers, etc. 3. Brand evaluation & Purchase As a result of information search, the customers evaluate brands available based on their past and current information with their desired benefits. It is very important to be in the consideration list in this stage for a brand to be consumed. A company needs to identify if it is in the consumers consideration list and if not what are the reasons for this. 4. Post Purchase Evaluation This may be associated to satisfaction while consumption/usage through parameters like performance, after sales support etc. Another important aspect at this stage is post purchase dissonance etc. This stage is very important to develop loyalty among customers and for popularity of the brand in terms of performance reviews.

External Parameters Influncers, Marketing and Company Some customers exhibit choices based on how they wish to be perceived, a feeling that often

stems from an internal insecurity that needs an external cover-up. These users are heavily influenced by Marketing communication showing the bike catering to their Ego needs and also by the general peer evaluation of the image the bike projects. These users migrate more towards the look and the image of a vehicle rather than its performance or its fit with their actual riding requirements.

Most of such users find a bike like Bullet unfit for them as they feel the bike is either too costly or they are not strong enough to handle a Bullet.

Research Methods and Procedures

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 an user looks for while buying a bike. The first phase was completely internal where the team brain stormed over the most effective route of action, considering that Bullet users in Manipal are greatly limited in number and would thus pose a serious problem if multiple phases of interaction are designed. The second phase was an online Focus Group Discussion 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 for their riding abilities and attitude. The people who were part of this FGD were: I mran Jeddy Project Lead at Oracle, Hyderabad. Male, 32 years old. Uses a Thunderbird since 2002 and has clocked about 85,000 km on his bike. Generally known for impeccable maintenance that he does all by himself. Moderator of the Hyderabad Bullet Club 23ONE. Deepti Jacob Research Director and Group Head at Ipsos Indica Market Research, Mumbai. Uses a T hunderbird since 2004 and has about 39,000 km on the odometer. She is respected as one of the most proficient lady riders in the country.

Arijit Bhattac harya Entrepreneur in Kolkata. Moderator of the Eastern Bulls Motorcycling Club. Uses a Standard 350cc of the 1994 vintage. He has the rare distinction of having ridden in every state in the country. He has run for more than 1,70,000 km and is gifted with an ab ility to locate a mechanic in the middle of nowhere when its needed the most.

Sandeep Menon CEO, Novell Software Development Private Limited, Bangalore. An ardent rider who owns 7 classic motorcycles including 3 Royal Enfields. He is an active member of the Rolling T hunders Motorcycling Club, Bangalore and makes it a point to participate in at least one long ride every two months.

Arun Entrepreneur in Udupi. Moderator of the United Riders Motorcycling Club. An ardent Bullet rider and personally knows almost all Bulleteers in the Manipal, Udupi region.

The FGD was moderated by Aditya Dixit and Subhayu Roy, research team members who also own and ride Royal Enfield motorcycles. For the next phase a questionnaire was prepared by the team using the findings from the FGD. This questionnaire was then administered to Bullet Riders in Manipal and Udupi by the interviewers in person, and some online responses were solicited from Bullet Club members from Bangalore, Chennai and Hyderabad. On interviewing Rashid, the veteran Bullet mechanic in Udupi, we had fixed the number of Bullet riders in Manipal region to be about 70. Assuming a confidence level of 95% and allowing for 10% Confidence Interval, we arrived at a Sample size of 41. However, given the limitations of time and resources, the questionnaire could be administered only to 19 respondents. In order to get a perspective from non-Bullet riders as to what are the reasons for not choosing a Bullet, we administered the same questionnaire to 19 riders who used other motorcycles. The next phase involved the analysis of the data collected. For this all the collected data was coded into appropriate SPSS modules and analyzed for various analytical studies: Parallel to the quantitative analysis, a qualitative analysis was done from Focus Interviews of the participants in the FGD. The primary objective of this was to study the Brand Image Profile of Bullets amongst users using the Kapferers model.

Data Anal i and Findings

Demograpics
Occupation

8%
45%
Se 

3%
3%

vee Sev ce !"-Sev ce# $%ess #& Se '(-)01'2ye 

3%

45% of the respondents were students pursuing their graduation or post graduation studies and 31% were professionals. 18% of the respondents were self employed, 3% were ex serviceman and 3% belonged to government services.
Gender

8%

34'e Fe 04'e

92%

92% of respondents were male and female respondents constituted just 8% of total responses.

Annual 5ncome

16%

18%

53%

7ess 89@A 1B20B000 120000 8C 3B59B999 3D60D000 EF 719999 GHFve 720000

13%

53% of the respondents had an annual income of lesser than 1,20,000, 18% had income between 3,60,000 and 7,19,999, 16% earned more than 7,20,000 per annum and 13% had income between 120000 to 3,59,999.
Bi6e Ownership

50%

50%

BIPPeEQRSeTs

UCA BVWWe8 XY`eas

Equal numbers of responses were collected from both the Bullet riders and the Non Bullet riders.

Age

c6%
40%
20-24

cd%

25-29

e0-e4 fghve 35
26%

40% of the respondents aged between 20 to 24, 26% between 25 to 29, 18% between 30 to 34 and only 16% aged above 35 years.

C lassi ication of Bullet riders and Non-Bullet riders based on Demogr aphic Data

Abo

i p 720000

Quantitative Analysis
Objective: In order to understand the attitude of a bullet rider, we need to understand his buying behavior. The respondents were asked to rank 5 attributes such as Looks, Speed, Power, Mileage, Price and Brand. These were arrived at after the exploratory research phase. The data collected was for both bullet riders and non-bullet riders. Hence a comparison in the ratings given by both the groups would help us identify the specific factors which are differentiating the buying behavior of a bullet rider. Methodology: An independent sample T-Test was conducted on the total sample size of 38 respondents (19-Bullet Riders, 19-Non Bullet Riders) to compare the means of both the groups. Results: Notation: Bullet Riders -1; Non-Bullet Riders-0

Interpretation: The results from the T-Test tell us that there is a significant difference in terms of the way they have rated the following attributes, since their significance value is less than 0.05. The null hypothesis is rejected and the alternate hypothesis is accepted.
y y y

Looks Power Brand

There is not a significant difference in the way the respondents have rated Mileage and Price. The main reason for this could be the increasing willing to pay more for the desired brand or bike. Speed has now become a hygiene factor and not a significant factor as it is the common need for both the groups.

Objective: To understand the dependence of bullet riders on the factors Looks, Power and Brand. This would help us narrow down independent factors to only those factors which are highly important to differentiate a bullet rider from a non-bullet rider. Methodology: Cross-tabulation is used along with the Chi-squared Test to determine if there is a significant association between the dependant variable-BulletRiders and independent variables-Looks, Power and Brand. Results: Chi-Squared Test results: Looks

Since the Pearson Chi-Square value is greater than 0.05, Looks do not have high association with the group a particular rider belongs to. This implies that the respondents in both groups have given importance to Looks.

The above bar chart tells us that in both the groups most respondents have given looks to be either 2nd preference or 1st preference. Brand Crosstabs

0 Brand 1 Count % within Brand 4 23.5%

1 13 76. % 68.4% 34.2% 2 20.0% 10.5%

Total 17 100.0% 44.7% 44.7% 10 100.0% 26.3%

% within BulletRiders 21.1% % of Total 2 Count % within Brand 10.5% 8 80.0%

% within BulletRiders 42.1%

% of Total 3 Count % within Brand

21.1% 3 60.0%

5.3% 2 40.0% 10.5% 5.3% 2 50.0% 10.5% 5.3% 0 .0% .0% .0% 19 50.0% 100.0% 50.0%

26.3% 5 100.0% 13.2% 13.2% 4 100.0% 10.5% 10.5% 2 100.0% 5.3% 5.3% 38 100.0% 100.0% 100.0%

% within BulletRiders 15.8% % of Total 4 Count % within Brand 7.9% 2 50.0%

% within BulletRiders 10.5% % of Total 5 Count % within Brand 5.3% 2 100.0%

% within BulletRiders 10.5% % of Total Total Count % within Brand 5.3% 19 50.0%

% within BulletRiders 100.0% % of Total 50.0%

The table tells that there are 76 % people who are bullet riders and have given Brand to be their 1st preference in their buying decision making.

Chi-Square Test

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 10.565a 11.846 4.460 38

df 4 4 1

Asymp. (2-sided) .032 .019 .035

Sig.

Since the Pearson ChiSquare significance value is less than 0.05, Brand has a significant association with the kind of bike a person owns. Power:

a. 6 cells (60.0%) have expected count less than 5. The minimum expected count is 1.00.

Crosstab BulletRiders 0 Power 1 Count % within Power 4 26.7% 1 11 73.3% 57.9% 28.9% 5 71.4% 26.3% 13.2% 2 40.0% 10.5% 5.3% 0 .0% .0% .0% Total 15 100.0% 39.5% 39.5% 7 100.0% 18.4% 18.4% 5 100.0% 13.2% 13.2% 7 100.0% 18.4% 18.4%

% within BulletRiders 21.1% % of Total 2 Count % within Power 10.5% 2 28.6%

% within BulletRiders 10.5% % of Total 3 Count % within Power 5.3% 3 60.0%

% within BulletRiders 15.8% % of Total 4 Count % within Power 7.9% 7 100.0%

% within BulletRiders 36.8% % of Total 18.4%

Count % within Power

3 75.0%

1 25.0% 5.3% 2.6% 19 50.0% 100.0% 50.0%

4 100.0% 10.5% 10.5% 38 100.0% 100.0% 100.0%

% within BulletRiders 15.8% % of Total Total Count % within Power 7.9% 19 50.0%

% within BulletRiders 100.0% % of Total 50.0%

The table tells us that 73 % of the people who are bullet riders have given , Power to be their 1st preference.

Chi-Square Tests Asymp. (2-sided) .013 .003 .002 Sig.

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 12.752a 15.677 9.880 38

df 4 4 1

a. 8 cells (80.0%) have expected count less than 5. The minimum expected count is 2.00. Since the Pearson chi-Square significance is less than 0.05, Power has very strong association with the kind of bike a person owns.

Objective: To reduce the number of factors that determines the buying behavior of a bullet rider. This will club together the relevant factors into one factor which is easier for us to interpret. Methodology: The multi-variate method, factor analysis can be used here to arrive at the factor groups. Results: KMO and Bartlett's Testa Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .636 Bartlett's Sphericity Test of Approx. Chi-Square df Sig. 48.938 15 .000

a. Only cases for which BulletRiders = 1 are used in the analysis phase.

The KMO test is test for goodness fit of the model. The value, Kaiser-Meyer-Olkin Measure of Sampling Adequacy is greater than .5 and the significance less than .05, which tell us that the model is good enough and will be useful. Communalities a Initial Looks Speed Power 1.000 1.000 1.000 Extraction .775 .737 .846 .671 .756 .767 Principal

Mileage 1.000 Price Brand 1.000 1.000

Extraction Method: Component Analysis.

The proportion of variance in any of the original variables which is captured by the extracted factors is known as communality. The values are greater than 0.6, hence can be considered for our analysis. Rotated Component Matrixa,b Component 1 Power Looks Brand Speed Price Mileage .908 .869 .851 .824 .063 -.209 2 -.143 -.144 -.205 .240 .867 .792

The rotated component matrix gives the loading of each variable on each of the extracted factors. Values close to 1 represent high loadings and those close to 0, low loadings. The above matrix tells us that the component 1 is highly loaded by Power, Looks and Brand. Speed is located somewhere in between component 1 and component 2 but close to component 1.Component 2 is highly loaded by Price and Mileage.

The above analysis clearly tell us that Brand, Power and Looks form one factor which are determining the buying behavior of the bullet riders. Speed can also be considered in the same factor group.

Objective: To determine the different segments in the bike market based on the customers value perception. This will help us to clearly identify the psychographic profile of our target customer. Methodology: Hierarchical cluster analysis is used to determine the number of clusters that exist in the data. The second stage is the K-means ( quick cluster) output with a pre-determined number of clusters to be specified. Results: Agglomeration Schedule Cluster Combined Stage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Cluster 1 22 22 15 3 20 14 13 3 15 3 36 24 10 3 Cluster 2 27 30 23 6 25 19 22 33 20 16 38 29 13 31 Coefficients .000 1.000 1.000 1.000 2.000 2.000 2.333 2.500 2.500 2.667 3.000 3.000 3.750 4.000 Stage Cluster First Appears Cluster 1 0 1 0 0 0 0 0 4 3 8 0 0 0 10 Cluster 2 0 0 0 0 0 0 2 0 5 0 0 0 7 0 Next Stage 2 7 9 8 9 22 13 10 17 14 30 25 28 17

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

17 1 3 9 2 12 2 3 1 28 3 1 4 10 2 18 1 3 2 1 1 1 1

32 8 15 11 17 26 21 14 7 37 24 35 5 28 4 36 12 10 3 18 34 2 9

5.000 5.000 5.250 6.000 6.500 7.000 7.333 7.333 7.500 8.000 10.227 10.333 11.000 11.800 12.250 13.500 14.750 15.011 20.833 22.000 22.778 30.585 32.778

0 0 14 0 0 0 19 17 16 0 22 23 0 13 21 0 26 25 29 31 34 35 36

0 0 9 0 15 0 0 6 0 0 12 0 0 24 27 11 20 28 32 30 0 33 18

19 23 22 37 21 31 29 25 26 28 32 31 29 32 33 34 34 33 36 35 36 37 0

Dendogram:

The above Dendogram clearly tells us that are 2 major clusters of data available to us.

K-means Cluster Results: Final Cluster Centers Cluster 1 SenseofFreedom SpeedandThrill Convinience SenseofControl ToShowOff 3 4 4 4 2 2 1 2 2 2 4

The values close to 1 indicate higher loading to that particular factor since the rankings were asked to be given from 1-5,Highest-1 and Lowest-2. Hence the cluster 1 is governed by Speed and Thrill, Convenience and Sense of Control. Cluster 2 is governed by the factor, to show off .Sense of freedom is prevailing in both the clusters with higher loading in the cluster 2.

Objective : To determine the significance of the association of psychographic variables: Sense of Control, Sense of freedom and Speed and Thrill, on the kind of bike a person owns. Methodology: Cross-tabulation and Chi-square test can be used to test the significance of association of these variables on our dependant variable. Results:

Chi-Square Tests Asymp. (2-sided) .032 .010 .082 Sig.

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 10.566a 13.247 3.020 38

df 4 4 1

The Pearson Chi-Square significance value is less than .05, hence sense of control is highly significant in terms of the bike a person owns.

Crosstab BulletRider 0 SenseofControl 1 Count 2 1 9 81.8% 47.4% 23.7% 4 50.0% 21.1% 10.5% 0 .0% .0% .0% 4 44.4% 21.1% 10.5% 2 50.0% 10.5% Total 11 100.0% 28.9% 28.9% 8 100.0% 21.1% 21.1% 6 100.0% 15.8% 15.8% 9 100.0% 23.7% 23.7% 4 100.0% 10.5%

% within SenseofControl 18.2% % within BulletRider % of Total 2 Count 10.5% 5.3% 4

% within SenseofControl 50.0% % within BulletRider % of Total 3 Count 21.1% 10.5% 6

% within SenseofControl 100.0% % within BulletRider % of Total 4 Count 31.6% 15.8% 5

% within SenseofControl 55.6% % within BulletRider % of Total 5 Count 26.3% 13.2% 2

% within SenseofControl 50.0% % within BulletRider 10.5%

% of Total Total Count

5.3% 19

5.3% 19 50.0% 100.0% 50.0%

10.5% 38 100.0% 100.0% 100.0%

% within SenseofControl 50.0% % within BulletRider % of Total 100.0% 50.0%

The above table tells us that 81 % people who had rated Sense of Control as their number 1 preference were bullet riders. The reason for this could be the kind of stability and comfort a bullet rider associates his bike with.Sense of Freedom: Chi-Square Tests Asymp. (2-sided) .634 .564 .412 Sig.

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 2.561a 2.963 .674 38

df 4 4 1

The significance Pearson Chi-Square is 0.634 which is greater than .05,hence Sense of freedom is not significant in determining the kind of bike a person owns.

Speed and Thrill: Chi-Square Tests Asymp. (2-sided) .137 .072 .628 Sig.

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 6.971a 8.604 .235 38

df 4 4 1

The significance Pearson Chi-Square is 0.137 which is greater than .05,hence Speed and Thrill is not significant in determining the kind of bike a person owns.

Hence, we can conclude that out the major psychographic variables that form the part of the target segment ,it is the sense of control with which the bullet is associated with is the most significant factor.

Competitor Analysis using Multi Dimensional Scaling

From the Multi Dimensional Scaling we arrive at this plot where the 10 motorcycles are plotted according to two Dimensions: 1. Dimension-1: Motorcycles which score high on Dimension-1 are Royal Enfield Bullet, Royal Enfield Thunderbird, Yamaha Enticer, and Bajaj Avenger. From the general perception of these bikes, we can estimate Dimension-1 to be a combination of Ride Comfort and Sense of Freedom parameters. So the motorcycles that have a tourer, or low-rider image score higher along this dimension. 2. Dimension-2: With the Hero Honda Splendor the Highest scorer on Dimension-2, we can estimate this to be a more cost sensitive dimension, where the total Vehicle Operation Cost of a vehicle has been considered. Hero Honda Splendor with its legendary mileage figures, scores very high on this dimension.

Looking at the plot derived from the responses, we can find the various motorcycles grouping themselves into representative zones. The Royal Enfield motorcycles are clubbed closely together showing that they are perceived very similarly. The Bajaj Pulsar 220 and the Yamaha R15 are located close to each other given their performance based image of being sporty bikes. Contrary to the marketing communication trying to position Hero Honda Karizma as a sporty bike, it seems to have made more of an impact as a tourer than a sport model. The Yezdis placement seems to be biased as most Yezdi owners are die-hard enthusiasts to be maintaining a motorcycle that has been out of production for quite some time now and frequently report service and spares issues. Even then it seems to be a costly proposition with a typically enthusiasts position in the plot. The Avenger with its 200cc engine seems closer to the Royal Enfield bikes, and at 175cc, the Enticer hovers around this region. The Yamaha RX100s position is unique. It has been out of production for a while, a 2-stroke bike that does not feature latest technology and has a moderate operating cost. However, since the study was based mostly in Manipal, the large number of student hand-me-down RX100s and RX135s makes this a popular choice in this region. We doubt if it would have the same position outside Manipal as well. Also the Hero Honda Karizmas position shows that people find it to be quite a balanced vehicle along these two dimensions. However, it lays to rest Hero Hondas Fill It-Shut It-Forget It proposition.

Perception about Spare Parts Availability

rsey are readily available

23% We dont get the t readily in Manipal. Cities have the t

47%

21%

rhey do not have good spares supply.

q%

Major headache!

53% of the respondents are discontent with the availability of spare parts out of which 23% of them descr ibe the situation as Major headache for them.
After Sales Service

14%

18%

Specialist Mechanic Company Service Station I do it myself 68%

None of the respondents trust any other mechanic for the service of their bulletand prefer to go to a specialist mechanic (68%) or a company service station (18%). 14% of the respondents trusted their knowledge about bike and preferred to service it by themselves.

Barriers of Purchase

14%

14%

10% 21%

vigh maintenance woor after Sales Service xigh Price yow Mileage oisy vehicle
Its too heavy. Not for me Not sporty enough

3% 10%

28%

Maximum number of people (28%) descr ibed the reason for their reluctance from buying Bullet as the high price associated with it while 21% said that a heavy bike like bullet was not suitable for them. hird biggest reason as the barrio of purchase is the high maintenance required for the bike and the bike not being sporty enough. he noise produced by the bike dur ing its run affect ed the least number of respondents while 10% of respondents each, refrained because of the low mileage and the poor after sales service of Bullet.
Media Habits

What should Bullet ads show?

16%

4% 23% Speed Power Respect

20%

Look Comfort Reliability

10% 27%

A major 50% of the respondents feel that Bullet ads should reflect respect and power instead of focusing on any other charcteristic of the bike like speed,comfort, look or reliability; with 27% responding in favor of respec t and 23% in favor of power. Newspaper Readin Ha its

18%
8% 41%

imes of India
The Hindu
Economic Times

9%

eccan chronicle thers

24%

imes of India and he Hindu enjoy a huge marke t share of 65% together among the bike riders as most popular newspapers. Out of the 14 options provided to the respondents, remaining 12 are read by only 35% of the bike r iders with Economic imes and Deccan chronicle preferred by 17% by of the respondents. Popular We sites Viewed
2 18

16 14 12 1 8 6 4 2

Series1

Most of the bikers visit at least one automobile related website to keep themselves updated. Royalenfield is the most visited website, followed by team -bhp and Harleydavidson, by the bike riders in automobile related websites category. Magazine Reading Habits

16

14 12
10

8
6

4 2
0

India Today

Reader's Digest

Bike India

Auto Car India

OverDrive

Outlook

Others

Out of the 15 magazines from different categories, the most popular magazine among the bike riders is OverDrive followed by AutoCar india and India Today. Automobile magazines dominate the share (53%) among the bike riders in comparison to other magazines from political, healthcare, business or entertainment category. Social Media Habits
35 30
25

20 15 10
5 0

Face ook

Orkut

T itter

Others

LinkedIn

i5

Social Media industry is largely dominated by Facebook and Orkut among the bike riders with around 63% of the bike riders using one of the two websites for socialization.

Other findings

Place of Purchase

5%

37% 58%

Showroom

Direct Second hand Used vehicles dealership

58% of the Bullet riders prefer to buy their bike from showroom only and 37% may buy it Second hand dircetly. But none of them buys the bike through brokers which shows that reliability of an outside party is low while making the purchase decision among the Bullet riders. Effect of Influencers

42%
I decided before buying

58%

Friend/Colleague

Personal decision is the biggest influencer in the buying decision of Bullet riders while 42% follow the suggestion of friends and colleagues. But reinforcing the fact that reliability of an outside party is low for Bullet riders, none of them are influenced by the recommendations of private dealers or any company employee.

Advertise ent Effectiveness

36%
45%

Everybody makes way for the Bullet TV Commercial Leave Home print Ad Dont really recall seeing one

19%

Out of the 3 V commercials and 2 pr int ads mentioned in the questionnaire, 2 V commercials and 1 pr int ad have failed to register the eyes of the respondents completely. While the maximum number (45%) of respondents could recall one of the V commercial,a large number of respondents (36%) couldnt recall seeing any ad of Bullet.

Qualitative Analysis
According to Jean-Nol Kapferer, the image of a brand can be established using a human metaphor who is perceived by customers in the same way as they would perceive the brand. There are various factors that go into creating this identity for a brand and in the Kapferers model six of these factors go into making the Brand Identity Prism.

Physique

Personality

Relationship

Culture (Values)

Reflection

Self Image

In the case of the Bullet, the factors were discussed in detail with the interviewees and the findings were as follows: 1. Physique Appearance) - The significant physical image that comes to the mind of the respondents when they think about Hunk are its muscular looks, Fuel tank and the bull. Most respondents felt that the bike looks best when in Black. 2. Personality When respondents were asked what the personality of the bike was or to describe the person if Bullet were one, the following response was obtained. Bullet will be a well built & confident male, aged between 25 35 years. He has good height and is a professional whose annual income is between 2 and 5 Lakhs. Bullet was related to the following celebrities John Abraham, Milind Soman, Mahendra Singh Dhoni, Sanjay Dutt, Akshay Kumar and Salman Khan. This shows an affinity for well built males with a confident image. Most of the respondents idolized action heroes. 3. Culture Most common associations when it came to culture exhibited extreme Value-expressive attitude. Most people found the representative culture to be Firm yet Polite, which is characteristically Asian. They felt the identity would be truthful, respected and have to ability to stand out in a crowd by the dint of his ability. The partying, loud, rebellious image was wholly negated in favor of the Freedom loving image.

4. Relationship his poses an antithesis to the ear lier image of a male as most riders felt the Bullet was their wife! However, going by the trust and confidence generally associated with the relationship, a best friend or Elder brotherly image can be construed. 5. Reflection When asked who would be the ideal customer for a Bullet, respondent s said that it would be a Male professional, around 25 years of age, well built, confident and who would most probably work in a position that commands respect. His hobbies would include long r ides and photography. 6. Self I a e he customer of a Bullet would be a strong-willed, chivalrous person with a love for freedom to whom trends of public perception would mean very little.

Phsiqu Muscular look, Fuel tank, Black Bull

Person lit Masculine, Well Built, Confident

Relationship Best Friend, Elder Broth er, Exclusive

Culture (Values) Polite, Firm, Asian, Honest, Standing Out

Reflection Well Built, Masculine, Confident, Aesth etic

Self Image Strong-Willed, Chivalrous, Loves freedom

Conclusion and Recommendations

The following are the Conclusions from the Data Analysis: 1. The buying behavior is governed predominantly by the need for Power and respect for the iconic Brand. 2. The internal locus of control is by and large dependent on the Sense of Control the motorcycle offers and also on the Sense of Freedom that users associate with it. 3. Users are mostly Professional Males, 20-35 years of age, including some students. 4. Users display mostly Value-Expressive behavior and Ego-defensive behavior is not seen amongst responses. 5. People who choose not to buy Bullets do so because of high price, maintenance and spares hassles and also because some feel they are not built for it. 6. Advertisements are rarely recalled and are highly ineffective amongst non-Bullet riders. 7. Bullets are perceived as low on cost-effectiveness, but high on ride comfort and reliability.

Based on our findings, we can make the following recommendations to Royal Enfield: 1. Marketing Communication should focus on satisfying the needs for Respect, Power and Comfort. 2. A non-flamboyant well-built brand ambassador may be chosen to represent the Brand 3. Television Commercial spots are more remembered than Print Advertisements even when they are over 6 years old. 4. Royal Enfield should concentrate on building around the iconic status it already enjoys if it plans to attract customers migrating to other manufacturers.

Limitations

Despite best efforts, certain important facets of this study remained uncovered. Some of them are as follows: 1. A sample of 19 respondents is not representative of the attitudes of more than 10,000 active Bullet riders across the country. 2. Enfield exports slightly modified motorcycles to 13 nations. No feedback regarding those models was taken. 3. Discriminant Analysis could not be performed as the data was collected in Ordinal form and was not Metric. This is why an Independent t-test was performed. 4. Important factors like Safety were never truly looked into as most riders considered this to be a hygiene factor across all motorcycles.

The study was limited in scope and resources and as mentioned earlier, the data was only a representative of the kind of data that would need to be analyzed if the study is scaled to a bigger population.

References

1. http://www.royalenfield.com/ 2. Nargundkar, R. Marketing Research, 3rd Edition 3. Schiffman, L G. and Kanuk, L L., Consumer Behavior, 8th Edition 4. Beri, G C., Business Statistics, 2nd Edition 5. http://www.eicherworld.com/ 6. http://www.wikipedia.org 7. http://www.team-bhp.com 8. August 2009, Bike India, Vol. 5, Issue 001