MANGALORE INSTITUTE OF TECHNOLOGY &

ENGINEERING
DEPARTMENT OF MBA

Mini Project on “A Study on Consumer Behaviour with Reference to Royal

Enfield Users in Udupi & Dakshina Kannada

Submitted to: Prof. Ajith D’Mello

Department of MBA

SL. NO. USN NAME REPORT VIVA TOTAL SIGN

1. 4MT18MBA80 SONU-C

2. 4MT18MBA88 SUSHMITHA-VC

3. 4MT18MBA75 SHREYANKA

4. 4MT18MBA78 SIDDESHA

5. 4MT18MBA79 SIDHARTH

6. 4MT18MBA81 SRINATH

7. 4MT18MBA89 VAISHNAVI

8. 4MT18MBA96 YASHASWINI

Date of Submission: 12/10/2019

Signature of the Faculty

ABSTRACT:

The purpose of this study on consumer behaviour will help us to understand the needs & wants of the
customers towards Royal Enfield. The study could provide appropriate and timely information about
the position of preference level of customer towards Royal Enfield. As the objectives of this study is
to analyze the customer behaviour, preference and to find out the customer satisfaction level, the
study also investigates the services and factors which influence the customers to purchase the Royal
Enfield bikes. It also identifies what customers are expecting from the Royal Enfield. Customer
preference is influenced strongly by culture, social, personal and psychological factors. For this
purpose, 30 respondents were selected from Udupi & Dakshina Kannada and obtained the various
responses based on the questionnaire method. It was found that most of the customers are choosing
Royal Enfield vehicles because of its Vehicle Appearance, pickup, good models, engine appearance
and capacities etc.

INTRODUCTION:

Royal Enfield is a well-known automobile company that primarily deals in manufacturing of motor
cycles and cycles. Apart from that, it produces lawnmowers, stationery engines and rifles. The
company's motto, “Made like a Gun”, reflects its weapon making legacy. Royal Enfield is a company
based in India with its headquarters in Chennai. The company was founded as Enfield Manufacturing
Company Limited in 1890. It produced its first ever bike under the brand name of 'Royal Enfield' in
the same year in Redditch, Worcestershire, England. Albert Eadie and Robert Walker Smith were the
founders of Enfield Manufacturing Company Limited that ceased to exist after 1971.
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. The expanding Indian market, the growing size of the middle class and the rise
in aspirations of the youth along with opening up of the Indian economy have collectively influenced
the steady growth of the two wheeler market in India. In the last 3 to 4 years, the craze for motorcycle
over the scooters has International Journal of Advanced Research in Business Management and
Administration picked up and one can find today even girls crazy for a motorbike not only in the
Metros but in small towns and cities also. The automobile industry in India happens to be the ninth
largest in the world with an annual production of over 4.3 million units in 2010. In 2011, India
emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.
Customer satisfaction plays a crucial role in enabling an organization to change and develop with
customers. 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. This market survey report is based on the survey, which has been done in
the Udupi & Dakshina Kannada. The main objective of the survey is to study the customer satisfaction
towards Royal Enfield. The data used for the analysis is primary data and collected through the use
of questionnaire. The respondents were the customer of Royal Enfield.

OBJECTIVES:

1. To understand the Consumer behaviour Analysis towards Royal Enfield.

2. To identify the future expectations towards the Bike.
3. To evaluate the attitude of young generation towards Royal Enfield.
4. To know about the experience after purchase relating various parameters (Service, bike
performance, mileage etc.).
5. To find out the satisfaction level of the respondents towards Royal Enfield.
6. To know the behaviour towards price differentiation in RE.

METHODOLOGY:

In this study have been comprised both descriptive & analytical methods. The Primary data have been
collected from the respondents which are beneficiaries of the study. The secondary data have
collected from the books, website and so on.

Sampling Design: The team collected the data from 30 respondents of Royal Enfield bike users in
Udupi & Dakshina Kannada.

Geographical Coverage: This study covered in Udupi & Dakshina Kannada.

Period of the study: The study covers the period of about September to October 2019.

Field Work and Data Collection: Field work of this was study carried on by the team through issue
of questionnaire pertaining to the objectives of the study. Here, Primary data collection was made by
the team. Most of the questionnaires were given in hand, but due to place constraint the respondents
had to fill in the data through Google Forms later which was transferred to the original questionnaire
by the team.

Data Processing: After completing the data collection thoroughly check-up was made by the team.
Then the team had prepared an Excel Sheet classify the data for further analysis and interpretation of
data.
LITERATURE REVIEW:

“Survey results based on Consumers of Royal Enfield vehicles”, follows by 100 users of two-
wheelers from rural and urban) in the district of Jodhpur, Rajasthan. The sample size is relevantly
small, yet the research brings showed some interesting observations related to general attitude meant
for Indian Consumers for making the decisions for buying, being widely implied over many consumer
based products. (Soni & Soni)

“Consumer behaviour in reference to showroom service meant for two wheelers.” A sample size of
200 users gets selected on a random basis. The research followed standardized questionnaires for the
collection of data. According to the results, users differ in reference to the behaviour of the consumer
behaviour meant towards the services as offered by the showrooms of Royal Enfield attained through
satisfied mode of random sampling. This research is subject to illustrate level of consumer satisfaction
in relation with royal Enfield under the features of socio-economic conditions of gender, age, family
income, occupation, level of educational, etc., noted as descriptive study. Data get treated on the basis
of collected statistics through t-test, correlation and F-test. As per the attained result, students as well
as employees are satisfied about the services of the showrooms. (Saravanan)

“Consumer preference towards Royal Enfield in Hyderabad and Secunderabad”, follows the sample
of 100 consumers by making the selection over two wheeler bikes such as Yamaha, Hero Honda and
TVS. Relevant data are all collected by structured questionnaire. (Reddy)

“Consumer behaviour under diversified kinds of Royal Enfield as made available in the market.” It
illustrates all the basic concerns that are affecting the process of deciding about the buying behaviour
of the individual. A sample size of 100 users of motorbike gets selected on a random basis and as per
the buying behaviour. Collection of data is accomplished through standardized implication of
questionnaires and some authenticated resources. Analysis of data is managed by different statistical
derivations. The core emphasis of this research is based on three determined corporate players in the
field of two-wheelers. It basically concentrates over male customers and derives cues about the
consumers for being highly stimulated through the socio-economic condition and issues of
demography. The research concludes with the factors about engine power and mileage that are
affecting the buying behaviour of the consumers and are not much concerned about the price,
delivering the power to buy and issues of demography, influencing the buying behaviour of the
consumer. Core challenges as faced by the Indian manufactures are the ways to expose determinants
directing consumer in the process of making buying decisions of Royal Enfield.
(Mahrotra and Sharma)
“The Consumer behaviour is the decision process and physical activity which the individuals engage
in evaluating, acquiring, using or disposing of goods and services”. In his study, he laid emphasis on
advertising, brand image and behaviour of the consumer. The advertising seemed to remain effective
over current brands. Consumer awareness for a determined brands as well as ads of brands are subject
to affect the consumer’s intention to buy and his behaviour. As per a survey led by Royal Enfield
pattern of growth related to the industry of two-wheeler is very much consumer-centric. (Loudon and
Della Bitta, 1984)

“Behaviour of the consumer and perception of the price of Royal Enfield.” With a margin of 50%
consumers making right identifications of real status of purchased brand in proportion with consumers
in percentage, being able to recall correctly about the purchase price of respective brand. There is the
compulsive mode of buying in resemblance to compulsive mode of consumer behaviours in
diversified ways Diversified factors followed in reference to buying behaviour are relied on
motivation to purchase two-wheeler. All these factors are inclusive of elements like advertisement,
referenced by family, peers, word of mouth, own experiences, price, features of the product/service
etc. as a result, survey gets done that shows 51% customers accepting two-wheeler sand relevantly
falling within the age group between 20 to 30 years, where the level of income is Rs. 5000. A total of
64% consumers are unmarried and prefer to use two-wheelers from Royal Enfield. The element of
motivation, in many cases is from friends (that is 44%) and family (with 31%). People are also
searching installment plans as well as finance schemes prior to the buying of two wheeler. (Lallin,
1989)

“A study to understand behaviour of the consumer with reference to the meaning or value of Royal
Enfield that defines it.” The study of consumer behaviour is to know the way an individual spends
his resources in the process of consuming items. This is an approach that comprises of studies of the
items that they buy and the reason for buying and the timing. It is also about where they make the
purchase and that too how frequently (Schiff man and Kanuk, 1996).

“Promotional essentials for Royal Enfield.” As per the results, customer considers many issues while
investing their resources for buying a product, like two wheelers. Still, there are many customers
laying emphasis over brand image. This research illustrates socio-economic issues that actually
satisfy the customers of Royal Enfield and students and employees craving to the services as offered
by the showrooms. (Prof. S. Saaravanan and Prof. N. Panchanatham, 2009)
“Study about Royal Enfield.” The successful establishment of a bike around that time was facilitated
by a complex of social, economic and political factors. The first and probably most vital condition
for the emergence of the bike lay in a growing demand scenario for a small and fuel efficient bike.
Specifically, there was an accumulated demand which is not only constituted by potential first time
buyers at the entry level – e.g. scooter or motorbike owners who seek car ownership – but also by
extant vehicle owners who had a huge replacement demand given an average vehicle life of 25 years
at the time. (Venkataramani, 1990)

“Marketing aims in satisfying the demands of the targeted customer.” The domain of consumer
behaviour deals with issues affecting consumer’s buying behaviour. It aims in offering a clearer idea
about the way consumer makes the selection, buys, utilizes and disposes the respective
product/service, experiences/ideas, attain to satisfaction to the desires (Kotler, 2003)

DATA ANALYSIS AND INTERPRETATION:

The data collected through questionnaires were analysed. As the part of primary data or research
survey method was used that is questionnaires were distributed among the Royal Enfield Users. Those
who were out of reach, Google Forms were sent and then re-entered in the questionnaire by the team.
For rest of the people, questionnaires were personally given. Then according to the research
objectives the findings were disclosed and analysed.

DEMOGRAPHICS:

We will analyse these 2 demographics before we go in for questionnaires.

1. Age

2. Occupation

Age:
 Age Frequency Percentage (%)

20-25 23 77

25-30 5 17

30 and above 2 6

Total 30 100

According to the above table 77% of the respondents are in the age group of 20-25 years; 17% of the
respondents in the age group of 25-30 years and remaining 6% of the respondents above 30. This
shows that most of those Royal Enfield users are youth and usually the adults do not prefer the Royal
Enfield.

Age Group

6%
17% 20-25

25-30

77% 30 and above

Occupation:
 Occupation Respondents Percentage (%)

Working 13 43

Student 17 57

Total 30 100

As per the table above the percentage of working professionals is 43 whereas the students strengths
is more than that of working that is 57%. A larger portion of the students own the Royal Enfield Bikes
that clearly indicates that it might be for royal look, prestige, Style and sense of status symbol.

Occupation
Percentage (%)

57

43

Working Student

QUESTIONNAIRE:
1. Which model of Royal Enfield do you presently own?
 Product Respondents Percentage (%)

Classic 350 21 70

Classic 500 3 10

Bullet Electra 3 10

Thunderbird 500 0 0

Any other 3 10

Total 30 100

Royal Enfield Model

10% 0%

10% Classic 350

Classic 500
10% Bullet Electra
Thunderbird 500
Any other
70%

Interpretation:

According to the survey, Classic 350 has 70% respondents and thunderbird being the least one.
Classic 350 has the highest sales and it i inferred that only Classic 350is able to attract customers than
any other models and it has also become the customers favourite model as compared to other models
of Royal Enfield.

2. How much rate for your satisfaction level with respect to after sales service of your Royal
Enfield bike?
 Satisfaction Level Respondents Percentage (%)

Highly satisfied 4 13

Satisfied 23 77

Dissatisfied 3 10

Total 30 100

Satisfaction Level

80

70

60

50
Percentage (%)
40

30

20

10

0
Highly satisfied Satisfied Dissatisfied

Interpretation:

The table shows that 13% respondents are highly satisfied; 77% are average in their opinion and 10%
respondents are dissatisfied with the after sale services of the Royal Enfield. This clearly shows a
small group of respondents are really happy or satisfied with the services they offer. Others are
contented but not satisfied.

3. From where do you get your two wheeler serviced?

 Place of Service Respondents Percentage (%)

Authorized service station 16 54

Unauthorized service 7 23
station
Both 7 23

Total 30 100

Place of Service
Authorized service station Unauthorized service station Both

23%

54%
23%

Interpretation:

The data depicts that 54% that is 16 respondents gets their Bikes serviced from Authorized Service
Station whereas the 23% of them get their service from Unauthorized stations and the remaining
23% respondents gets their vehicle serviced by both Authorized as well as Unauthorized Service
Stations.

4. What is the rate of fuel consumption for Royal Enfield bike?

 Fuel Consumption Respondents Percentage (%)

Low 1 3

Average 26 87

High 3 10

Total 30 100

Fuel Consumption
Percentage (%)

87

3
10
Low
Average
High

Interpretation:

The respondents view on the rate of fuel consumption is average. 87% of the respondents have voted
to Average fuel consumption pattern. The 10% is gained for high fuel consumption. Thus the
company has to work on this ground.

5. Are you satisfied with the bike’s mileage?

 Satisfaction with Bike’s Respondents Percentage (%)
Mileage

Yes 17 57

No 9 30

Can’t say 4 13

Total 30 100

Satisfaction with Bike’s Mileage

13%

Yes
30%
57% No

Can’t say

Interpretation:

The survey says 57% of the respondents are happy with mileage the Royal Enfield provides; 13% are
not sure about the mileage thing and remaining 30% are not satisfied with the mileage it provides. So
maybe the company needs to work on the increasing the mileage.

6. When it comes to comfort and convenience, the Royal Enfield bike is…
 Comfort and Respondents Percentage (%)
Convenience

Very Comfortable 20 67

Average 9 30

Not Comfortable 1 3

Total 30 100

Comfort and Convenience

Percentage (%)

67 30 3

Very Comfortable Average Not Comfortable

Interpretation:

As far as Comfort and convenience is concerned, 67% of Royal Enfield users say it is very
comfortable for long rides, off roads etc. 30% of the population feel the average comfort and
remaining 3% respondents feel they are not at all comfortable.

7. Are you satisfied with the performance of the bike?

 Performance Level Respondents Percentage (%)

Highly Satisfied 18 60

Satisfied 10 33

Dissatisfied 2 7

Total 30 100

Performance Level
Highly Satisfied Satisfied Dissatisfied

7%

33%
60%

Interpretation:

The performance level of the Royal Enfield is highly satisfactory that is 60% of the respondents feel
the same; but 33% feel it’s okay not that great and remaining 7% are highly dissatisfied with the
performance of the bike.

8. What is the one thing you want to improve in your bike?

 Grounds to Improve Respondents Percentage (%)

Speed 3 10

Mileage 17 57

Look 3 10

No need to change 7 23

Total 30 100

Grounds to Improve
Percentage (%)

57

23
10 10
Speed Mileage Look No need to
change

Interpretation:

The major observation and need for change is in the mileage of the bike. That comprises 57% of the
respondents and some feel speed needs to be improvised; and many others feel the look of the bike
can e enhanced and 23% feel the bike is good now and no changes required.

9. According to your opinion what can be done to Improve Royal Enfield bikes sales in
 local markets?

Improvement in Sales Respondents Percentage (%)

Advertise more 3 10

Provide better service 10 33

Improve quality 6 20

Should reduce prices 11 37

Total 30 100

Improvement in Sales

10%
37%
Advertise more
33%
Provide better service
Improve quality
20% Should reduce prices

Interpretation:

In the ground of sales, the highest demand is to reduce the price of the bike that is 37% and next
comes to provide better service to the customers. The other 2 factors are to invest in advertisements
and improve the overall bike quality.
 10. Do you easily get spare parts of Royal Enfield in market?

Availability of Spare Respondents Percentage (%)

parts
Yes 22 73

No 2 7

Can’t say 6 20

Total 30 100

Availability of Spare parts

Percentage (%)

73

20
7
Yes No Can’t say

Interpretation:

The report and the survey say the spare parts are easily available for Royal Enfield. 73% respondents
feel that the availability of spare parts. Remaining 27% are confused or feel the lack of spare parts.

11. Overall satisfaction level has derived as expected from Royal Enfield bike?
 Highly dissatisfied Delighted

1 2 3 4 5

Overall Satisfaction Respondents Percentage (%)

Level
1 0 0
2 2 7
3 1 3
4 20 67
5 7 23

Total 30 100

Overall Satisfaction Level

0%
3% 1
7%
23% 2

67%

Interpretation:

The table shows 67% happy delighted that is the customers are happy with the product but still on
some grounds work needs to be done so that the people accept Royal Enfield without any confusion.

12. Do you recommend Royal Enfield to others?

 Recommendations Respondents Percentage (%)

Yes 28 93

No 2 7

Total 30 100

Would you Recommend Royal Enfield?

Percentage (%)

93

Yes No

Interpretation:

Almost 93% of the respondents have liked the bike and they are ready to recommend it to others. The
only 7% people might have had a bad experience or may be the service or the mileage etc. The
consumers obviously go for Royal Enfield for comfort, prestigious status and the Royal look it gives.

CONCLUSION:
Royal Enfield intends to transcend the limitations of mid-size motorbike industry by further spreading
its wings to various part of the world. To make their product more efficient and technologically more
advanced and developed, the company plans to establish two new technology centres by the end of
2015. Out of the two proposed Tech Centres, the bigger one will be constructed in Chennai, over an
area of 4.5 acres. This study reveals the royal Enfield customers preferences and their satisfaction
level towards various aspects. The customer preference on Royal Enfield motorcycle revealed that in
order to capture the market, the manufacturers have to give the best combination of looks, quality,
cost efficiency good features, safety, luxury and performance. The findings of this study would help
the company and as well as the dealers to understand their customers and improve their satisfaction
level in future.

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. 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.

We can conclude younger generation and middle age are more interested in Royal Enfield, the buying
behaviour is governed predominantly by the need for Power and respect for the iconic Brand and
users are mostly students, 20-25 years of age. 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.

ANNEXURE 1:
 Questionnaire

“CONSUMER BEHAVIOUR ON ROYAL ENFIELD USERS OF UDUPI & DAKSHINA

KANNADA.”

NAME: OCCUPATION:
ADDRESS: AGE:
PHONE NUMBER:
CHASSIS NUMBER:
VEHICLE NUMBER:

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

 Classic 350
 Classic 500
 Bullet Electra
 Thunderbird 500
 Any other ________
2. How much rate for your satisfaction level with respect to after sales service of your Royal Enfield
bike?
 Highly satisfied
 Satisfied
 Dissatisfied
3. From where do you get your two wheeler serviced?
 Company Authorised Service Station.
 Unauthorized Service Station (Road side Mechanic).
 Both
4. What is the rate of fuel consumption for Royal Enfield bike?
 Low
 Average
 High
5. Are you satisfied with the bike’s mileage?
 Yes
 No
 Can’t say
6. When it comes to comfort and convenience, the Royal Enfield bike is…
 Very comfortable
 Average
 Not comfortable

7. Are you satisfied with the performance of the bike?

  Highly satisfied
 Satisfied
 Dissatisfied
8. What is the one thing you want to improve in your bike?
 Speed
 Mileage
 Look
 No need to change
9. According to your opinion what can be done to Improve Royal Enfield bikes sales in local markets?
 Advertise more
 Provide better service
 Improve quality
 Should reduce prices
10. Do you easily get spare parts of Royal Enfield in market?
 Yes
 No
 Can’t say/Rare
11. Overall satisfaction level has derived as expected from Royal Enfield bike?

Highly dissatisfied Delighted

1 2 3 4 5

12. Do you recommend Royal Enfield to others?

 Yes
 No

Suggestions, if any:

_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

ANNEXURE 2:
 Personal Details

SL NO NAME ADDRESS CHASSIS NO VEHICLE NO

1. SHAIK RAYYAN KARKALA ME3U3S5C1HH975134 KA20EQ0643
2. VIGNESH KARKALA ME3U3S5C1HKI03887 KA20EQ1767

3. HARSHITH SAMAGA KALLIANPUR ME3U3S5C2JG276971 KA20ER9801

4. SUMANTH BARKUR ME3U3S5C2JC103431 KA20ER1337

5. JYESTHARAJA PUTTUR ME3U3S5C1EF018737 KA19EM3092

6. AKSHAY SHETTY NITTE ME3U3S5C1FK303418 KA20EK4333

7. SHREYAS MOILY KARKALA ME3U3S5C2JM301352 KA20ES4540

8. ABHISHEK BANGALORE ME3U3S5C1HA078215 KA20EN2236

9. PUNITH BANGALORE ME3U3S5C1GM089137 KA19EU0506
10. JEENITH SHETTY MANGALORE ME3U3S5C2JD143890 KA19EY4883

11. NANDEESH SHETTY MALYADI ME3U3S5C1JC613318 KA20ER5637

12. JESWWIN BELVE ME3U5S5FIFKO67741 KA19EQ4617

13. PRASAD ACHARYA KARKALA ME3U3S5C1GE502815 KA20EP5380

14. RAVI KARKALA ME3U3S5C1GE438158 KA20EM1982

15. DARSHAN MOODBIDRI ME3U3S5C0EB328516 KA20EF3983

16. AKSHAY UDUPI ME3U3S5C1EA012452 KA20EF2883

17. SHRISHESH T S MOODBIDRI ME3U3S5C0GL132219 KA19ET7439
18. GANESH UDUPI ME3U3S5F1EN012432 KA20EH5254

19. SWAROOP JAIN KARKALA ME3U3S5C2HM061321 KA20EQ9154

20. SHARATH UDUPI ME3U3S5C0EB481473 KA20EF4712

21. PAVAN KARKALA ME3U3S5C0FN903182 KA20EK9862

22. NITHIN KARKALA ME3U3S5C1FC131411 KA20EJ6666

23. SACHIN SHETTY BANGALORE ME3P7A6FEKI0I7965 KA20U1212

24. KARTHIK BELVE ME3U3S5C0FL918780 KA20EK3569

25. AKSHATH PEROOR ME3U3S5C2JL302959 KA20ES5043

26. UPENDRA NAVADA KUNDAPURA ME3U3S5C1GC562228 KA20EI7309
27. DISON MANGALORE ME3U3S5C1HC820142 KA19EU9610

28. KSHAMITH MOODBIDRI ME3U3S5C0CA116313 KA19EF9358

29. PAVAN SHETTY HEBRI ME3U3S5C1GM031820 KA20EQ2835

30. SHREYAS SHETTY KARKALA 8BFS7513289 KA20U9603