wPROJECT REPORT

ON

“A STUDY ON CUSTOMER SATISFACTION TOWARDS

ROYAL ENFIELD BIKES, BANGALORE”

SUBMITTED IN PARTIAL FULFILLMENT OF BACHELOR OF

BUSINESS MANAGEMENT DEGREE COURSE OF BANGALORE
UNIVERSITY

2010-2011

BY

VENU.S

Reg No.08YAC08170

UNDER GUIDENCE OF

MS. RAJANI KORAH

GAIN MORE KNOWLEDGE

REACH GREATER HEIGHTS

PRESIDENCY COLLEGE, KEMPAPURA, HEBBAL,

BANGALORE-560024
 DECLARATI0N

I hereby declare that this titled as “A STUDY ON CUSTOMER

SATISFACTION TOWARDS ROYAL ENFIELD BIKES,

BANGALORE” is my original work under the guidance of Ms.Rajani Korah,

towards the partial fulfilment of the requirements for BBM course of Bangalore

University. This has not been submitted earlier for award of any other degree by

Bangalore University or any other University.

DATE: NAME: VENU.S

PLACE: BANGALORE REG NO: 08YAC08170

 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 final year BBM degree course.

I am thankful to Mr. MUDDU VINAY Principal and Mr. PRADEEP SHINDE

Head of Dept of Presidency 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.

NAME: VENU.S
REG NO: 08YAC08170
SL. NO. CONTENTS PAGE NO
1. CHAPTER 1- INTRODUCTION 1-40
This chapter contains introduction to Marketing,
Meaning, Definition, Importance and other relevant
aspects of Customer Satisfaction, the theoretical
background to Automobile Industry till date and
Indian two wheeler markets.
2. CHAPTER 2- RESEARCH DESIGN 41-51
 Statement of problem
 Objectives of study
 Scope of study
 Operational Definitions
 Research Methodology
 Tools of Data collection
 Sample Design
 Plan of Analysis
 Limitations of the study
 Overview of Chapter scheme
3. CHAPTER 3- COMPANY PROFILE 52-77
This chapter contains the historical background of the
company, company vision, objectives, and SWOT
analysis.
4. CHAPTER 4- DATA ANALYSIS AND 75-114
INTERPRETATION
Analysis and interpretation from the data collected
through questionnaires, Tables and graphs
representing it.
5. CHAPTER 5- SUMMARY OF FINDINGS 115-120
AND CONCLUSIONS
This chapter contains the findings drawn from the
study.
6. CHAPTER 6- SUGGESTIONS 121-123
This chapter consists few suggestions to the company
7. ANNEXURES
This chapter contains Questionnaire.
8. BIBLIOGRAPHY
 Name of the books, author, magazines and websites.
INDEX OF THE TABLES

TABLE TABLE NAMES PAGE

NO NO
1. Table showing the profile of the respondents based 75
on age

2. Table showing the profile of the respondents based 77

on gender

3. Table showing the occupation of respondents 79

4. Table showing the annual income group of 81

respondents

5. Table showing the model of the Royal Enfield the 83

respondents presently own

6. Table showing the purchasing way of the customers 85

7. Table showing the no of respondents considering 87

other motorcycle while purchasing Royal Enfield
bike

8. Table showing the source of awareness for customers 89

while buying their Royal Enfield bike

9. Table showing the mileage of Royal Enfield after 91

purchase of bike

10. Table showing the breakdown of bikes since 93

purchase of vehicle

11. Table showing the place of purchase of Royal Enfield 95

bikes and their satisfaction response towards it

12. Table showing the availability of spare parts in the 97

market
13 Table showing the major problems after purchasing 99
Royal Enfield bike
14. Table showing the rating by the respondents for their 101
satisfaction level with respect to power and pick up

15. Table showing the rating by the respondents for their 103
satisfaction level with respect to comfort and safety

16 Table showing the rating by the respondents for their 105

satisfaction level with respect to after sales service

17. Table showing the respondents opinion of the major 107

barrier for not purchasing Royal Enfield bikes by
non-bullet riders

18. Table showing the place of service of respondents 109

bike

19. Table showing the respondents opinion and level of 111

satisfaction about the company taking action towards
complaints lodged by the customers

20. Table showing the respondents opinion about 113

participating in the rider mania organized by the
Royal Enfield club
 INDEX OF THE GRAPHS

GRAPH GRAPH NAMES PAGE

NO NO
1. Graph showing the profile of the respondents based 76
on age

2. Graph showing the profile of the respondents based 78

on gender

3. Graph showing the occupation of respondents 80

4. Graph showing the annual income group of 82

respondents

5. Graph showing the model of the Royal Enfield the 84

respondents presently own

6. Graph showing the purchasing way of the customers 86

7. Graph showing the no of respondents considering 88

other motorcycle while purchasing Royal Enfield
bike

8. Graph showing the source of awareness for 90

customers while buying their Royal Enfield bike

9. Graph showing the mileage of Royal Enfield after 92

purchase of bike

10. Graph showing the breakdown of bikes since 94

purchase of vehicle

11. Graph showing the place of purchase of Royal 96

Enfield bikes and their satisfaction response towards
it

12. Graph showing the availability of spare parts in the 98

market
13 Graph showing the major problems after purchasing 100
Royal Enfield bike
14. Graph showing the rating by the respondents for their 102
satisfaction level with respect to power and pick up

15. Graph showing the rating by the respondents for their 104
satisfaction level with respect to comfort and safety

16 Graph showing the rating by the respondents for their 106

satisfaction level with respect to after sales service

17. Graph showing the respondents opinion of the major 108

barrier for not purchasing Royal Enfield bikes by
non-bullet riders

18. Graph showing the place of service of respondents 110

bike

19. Graph showing the respondents opinion and level of 112

satisfaction about the company taking action towards
complaints lodged by the customers

20. Graph showing the respondents opinion about 114

participating in the rider mania organized by the
Royal Enfield club
 CHAPTER 1
INTRODUCTION
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.

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 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 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. The task of marketing research is to provide management with relevant,

accurate, reliable, valid, and current information. 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 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.

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)

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.

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 motel—even though its

facilities and service would be deemed superior in “absolute” terms.

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?

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.

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.

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 transaction- and relationship-

based marketing strategies. As a result of the focus on relationships in

marketing research, customer loyalty gained importance within research.

Before determining which stream the present study can be associated

with, however, it is important to create a clear understanding of different

customer loyalty concepts prevalent in research. This will be accomplished in

the following section.

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 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 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, neo-behaviorist 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. 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.

Determinants of Customer Loyalty

In order to be able to gear marketing activities towards the creation of customer

loyalty, its determinants and their precise effects have to be known.

Accordingly, many researchers have investigated this topic. In order to gain an

overview of the determinants identified in these works, they can be structured in

three dimensions:

(1) Company-related determinants refer to the supplier itself or to the goods

or services offered. It is a prerequisite for the existence of customer loyalty

that the offered goods or services create utility for the customer and that they

are available. In this respect, an assessment is usually performed by

examining quality. In order to evaluate the price-performance ratio, customers

will pay attention to prices. Customer loyalty will also be influenced by the

reputation a company has and ultimately by customer loyalty programs offered.

(2) Relationship-related determinants play a significant role in long-term

relationships. Factors regarding the interaction between supplier and

 customer, such as relationship quality, previous experiences, and trust are

important. Commitment, which provides evidence of emotional closeness

and moral or normative feelings of obligation, takes a central role in

relationships. Specificity and dependence can lead to economic, psychological

and social switching barriers.

(3) Customer-related determinants are mainly influenced by customers’

characteristics. In this respect, affect and involvement, and consequently

also the importance of the good or service to the customer, are important.

Addition to the above delineated areas, the effects of the market environment

and competition are researched, as is the link between satisfaction and loyalty,

which plays an important role in the research of customer loyalty and is

often placed in one of the three dimensions. However, as most other

determinants influence satisfaction, it cannot be clearly separated and

should therefore be listed as a distinct category.

OBJECTIVES OF CUSTOMER SATISFACTION PROGRAMME

Our Programs are research based, built on the three corner stone’s 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

• 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 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.

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

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.

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

problem-solving 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 day’s 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.

HANDLING CUSTOMER COMPLAINTS

A complaint is any measure of dissatisfaction with your product or

service, even if it’s 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 can’t 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 you’ve referred the complaint to others,

make sure there’s closure. If you’ve left the customer hanging without a

response, you’ve 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

customer’s 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 that will differentiate you and make your work life easier, more

fun, and more responsive to customer needs.

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. I’ve learned it’s 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 you’re 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, I’ve found

it’s 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. 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.

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. India’s 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 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

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 Kinetic’s 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 customer’s 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.

TOP EXPORT DESTINATIONS

The Indian Automobile industry has attained new heights in the last

ten years. It has seen the vehicle production growing rapidly and industry has

been making significant contribution to the employment, directly and indirectly,

and also to kitty of indirect taxes. Today, all major OEMs are in India and many

of them have made India a hub for their small cars and exports.

In December 2006, Government had formulated a ten-year

Automotive Mission Plan with an aim to achieve domestic vehicle market of

$82-119bn by 2016 and $12bn export of vehicles. It also aimed at making India

7th largest vehicle producing country in the world by 2016. And, we have

already achieved this milestone in 2010, which is good six years ahead of the

target.

 In this category, SAARC countries have been one of the key destinations

for Indian exports with three of the SAARC countries, Sri Lanka,
 Bangladesh and Nepal featuring in the top 6 export destinations for Indian

two wheelers segment. However, exports to Sri Lanka, which used to be

the largest importer of two wheelers from India in 2006-07, have fallen by

almost 20% since 2006-07 to reach a level of $ 63mn of exports in 2009-

10.
 The top most destinations for exports in this segment is Nigeria which

imported two wheelers worth $ 103mn in the year 2009-10 up from $ 85mn

in 2008-09, a growth of 21% approximate. In fact, Nigeria has emerged as

one of the fastest growing destination for Indian two wheeler exports over

past 4 years. India exported two wheelers worth merely $ 6mn in Nigeria in

2006-07 which has grown by 15 times to reach an export level of $ 103mn

in 2009-10. Amongst the top 5 export destinations in this segment,

Colombia experienced the highest increase in growth of imports from India

in 2009-10. Exports of two wheelers to Colombia increased by 45% in

2009-10 over 2008-09.

FUTURE PROJECTIONS

 The Indian automobile industry is expected to grow to US$ 40bn by 2015

from the current level of US$ 10bn in 2009. By the year 2016 the industry

is expected to contribute 10% of the nation’s GDP. The industry

manufacturers over 11mn vehicles a year employing more than three

million people.
 The greatest challenge and competition would be from the Chinese

automobile industry. It has been able to give stiff competition to India in

terms of productivity, cost of manufacturing and technology. Again the

present trend of excess manufacturing capability, reduced margins put

additional pressure on the industry.

 On the positive side, India’s strength in software sector, combined with

skilled labor and low cost of manufacturing should place it in a favorable

position globally.
 Two wheeler industry gains more profit Considering the scenario of traffic

and roads in India, and the rate at which infrastructure is growing in

comparison with the market, any fool will prefer to travel in a two wheeler

(for regular use, not for picnic or time pass or once in a while trips). For the

simple reason that, with a two wheeler, sneaking anywhere is far easier

than a four wheeler. And definitely faster too. And then comes the bigger

problem of parking. Two wheelers can be parked anywhere on the road, but

that’s not the case with a four wheeler. So, the whole point is unless there is

some way where these two issues are addressed, I don’t think anything

significant is going to happen.

 It gives the optimistic view about the industry and the overall industry

shows positive growths which recommend the investors to keep a good

watch on the major’s players to benefit in terms of returns on their

investments.
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. This is likely

to lead to further innovations and efficiency gains.

 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).

CHAPTER 2
RESEARCH DESIGN
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.

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 customer’s satisfaction regarding bikes and after sales

service.
SCOPE OF THE STUDY

This study includes Customer’s 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 Bangalore and the scope is

limited.

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.

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 user’s 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 Bangalore 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.

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.

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 user’s 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 Bangalore 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 Bangalore city

taken
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 Bangalore 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.
OVERVIEW OF CHAPTER SCHEME

Chapter-1 Introduction- It’s 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.

Chapter-2 Research Design- 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.

Chapter-3 Company Profile- This chapter contains the historical background

of the company Royal Enfield, company’s vision and objective, Royal Enfield

products, organizational chart and SWOT analysis of Indian two wheeler

markets and Royal Enfield.

Chapter-4 Data Analysis and Interpretation- This chapter consists of the

analysis and interpretation from the data collected through questionnaires, tables

and graphs representing it.

Chapter-5 Findings and Conclusion - This chapter contains the findings

drawn from the study and final conclusion about the whole project. Also few

suggestions are posted.

Chapter-6 Suggestions- This chapter contains some suggestions to the

company.
 CHAPTER 3
COMPANY PROFILE
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

PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

Profile of the Organization
Royal Enfield is 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.

2010 AWARDS

The New Year saw the dawn of India's most prominent automotive show, the

Auto Expo 2010. Held between January 5th and 11th at the Pragati Maidan in

New Delhi, the event saw more than 400 global brands showcasing new

technology, products and show-off concepts.

Royal Enfield was also a part of the event, displaying the recently launched

Royal Enfield Classic 500 EFI and the Royal Enfield Classic 350. The main

stays of the Royal Enfield display were the soon to be launched variants of the

Classic - the Royal Enfield Classic Chrome and the Royal Enfield Classic Battle

Green.

The Expo turned out to be a rather rewarding experience for Royal Enfield with

the Royal Enfield Classic and the Marketing team picking up as many as five

awards.
Awards 2010:

- Apollo Auto India Awards 2010: Best Brand

- Zigwheels.com Viewers Choice Bike of the Year 2009

- Zigwheels.com Bike of the Year above 251cc

- NDTV Profit Car & Bike Awards 2010: Motorcycle of the Year above 250 cc.

- NDTV Profit Car & Bike awards 2010: Best PR Communications Team.

EVOLUTION OF ROYAL ENFIELD

THE BEGINNING (1851 – 1890)

Hunt End, England was a village of several small

mills manufacturing needles and fish-hooks. It

was here in 1851 that George Townsend put up

his needle-making mill, which he named Givry Works. But it wasn’t 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-dozen machines. Each machine, known locally as the

'Townsend cycle' was reputed for its sturdy frame, a character that all Enfield

bikes would follow.

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 didn’t 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 Townsend’s 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 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.

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 Women’s Police Force were issued

with a 2 1/4RE 2 stroke. Interestingly, the models of this period featured 600cc,

inlet-over-exhaust, closed valve gear, hand-operated oil pump, two-speed

countershaft gearbox and 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

Dairyman’s 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 side-valve bike in 1928, and a four-stroke single in

1931. Several machines were produced in the next decade, from a tiny two-
stroke 146cc Cycar to an 1140cc V-twin in 1937. Can you even imagine that

Royal Enfield’s 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 Enfield’s

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 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 from the Indian Army for the supply of

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 UK…Never 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 Enfield showrooms in the UK saw everything

from 125cc two strokes to the mighty700ccMeteor.

1955-Meanwhile in Madras…The 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 UK…In 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.

1963-But back home in Madras…By 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 it’s 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.

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 step-

through 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.

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- India’s 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 (60’s Class) on a Bullet.

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 a

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.

2007

Royal Enfield launches the all new limited 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 Enfield’s

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.

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 can’t 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.

Army's stunt riders break record-

ARMY PERSONNEL IN BANGALORE SET RECORD OF

CARRYING 48 PERSONS ON ONE BIKE Indian Army

personnel broke a world record by being the only team in

the world to cross a staggering distance of 1000 meters

carrying 48 persons on a single moving 500 cc Royal Enfield motorcycle.

'Tornadoes', the motorcycle display team of Army Service Corps today broke

two world records by being the only team to achieve a staggering distance of

1100 meters with 54 persons on a single bike. They broke the record of Corps of

Military Police who carried 48 persons on a single moving 500 CC motorcycle

here recently. The team while exhibiting extraordinary skill, courage, endurance

and mental strength, entered the annals of record books by performing this

breathtaking feat on a 500 CC Royal Enfield motorcycle at the Runway of Air

Force Station Yelahanka in the presence of a large number of military and civil

dignitaries. The 'Tornadoes' was raised in 1982 after having given a stupendous

display of daredevilry in the 1982 Asian Games. "Since then the men of the

Tornadoes Team by their sheer grit, determination and spirit of adventure have

created a niche for themselves by rewriting various records," the release said.

The team at one point of time had achieved the distinction of holding seven

world and national records of varying degrees of complexity and fortitude, it

said.

ORGANISATIONAL STRUCTURE

GENERAL MANAGER
(Proprietor)

Sales Manager Service Manager Service Manager

Showroom Service Accountant

In charge Supervisor
charge
 Team Service Assistant

Manager Staffs Accountant

Sales

Representative

SWOT ANALYSIS
MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET

GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCES

A Bajaj, Hero Honda Highly diversified - High buyer power

Aggressive - High competitive

promotion
rivalry

- High entry barriers

B TVS Selectively - Low entry barriers

diversified
- Narrow product lines
Aggressive imply that aggressive
Promotion promotions can eat into
market share

C Honda, Yamaha Selectively -High threat of

diversified
substitution (Rs 1 lakh car)
Moderate Promotion
- Low entry barriers

D Royal Enfield Highly specialized - Low buyer power, high

brand loyalty
Low Promotion
- Product diversification
will imply risk of brand
dilution

SWOT ANALYSIS OF THE TWO WHEELER INDUSTRY

STRENGTHS WEAKNESSES

 Established brands  Extremely price sensitive

 Strong Brand Name  Short PLC
 Fuel efficient  High R and D costs
 Style statement
 Convenient in heavy traffic
 Cheap and affordable
 Easy and cheap finance availability
 Patents
 Good reputation among customers

OPPURTUNITIES THREATS

 Growing premium segment  The Rs.1 Lakh car

 Increasing dispensable income
 Environmental concerns
 Exports increasing
 Very strong demand in the 100cc.
segment dominated by limited
players.
 Cut throat competition
 Increasing number of players in the
market
 Rising raw material costs
 Increasing rates of interest on
finance

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
 CHAPTER 4
DATA ANALYSIS
AND
INTERPRETATIO
N
TABLE No.1
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED
ON AGE

AGE NO. OF PERCENTAGE

RESPONDENTS
20-24 30 40%
25-29 19 26%
30-34 14 18%
Above 35 12 16%

TOTAL 75 100%

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

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.
GRAPH No.1

GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS

BASED ON AGE
TABLE No.2
TABLE SHOWING-THE PROFILE OF THE RESPONDENTS BASED
ON GENDER

GENDER NO. OF PERCENTAGE

RESPONDENTS
MALE 69 92%

FEMALE 6 8%

TOTAL 75 100%

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.

GRAPH No.2
GRAPH SHOWING-THE PROFILE OF THE RESPONDENTS
BASED ON GENDER
TABLE No.3
TABLE SHOWING-THE OCCUPATION OF RESPONDENTS

OCCUPATION NO.OF PERCENTAGE

RESPONDENTS
STUDENT 33 44%

GOVERNMENT 5 6%
SERVICE
EX-SERVICEMEN 3 4%

PROFESSIONAL 21 28%

SELF-EMPLOYED 13 18%

TOTAL 75 100%

Analysis

From the above table it is clear that 44% of the respondents were students

pursuing their graduation or post graduation studies and 28% were

professionals. 18% of the respondents were self employed, 4% were ex-

serviceman and 6% belonged to government services.

Interpretation

It is clear that users are mostly Professional males, 20-35 years of age including

some students because of the looks and power of the bike.

GRAPH No.3
GRAPH SHOWING-THE OCCUPATION OF RESPONDENTS

TABLE No.4
TABLE SHOWING-THE ANNUAL INCOME GROUP OF RESPONDENTS

INCOME GROUP NO. OF PERCENTAGE

RESPONDENTS
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%

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.

GRAPH No.4
GRAPH SHOWING-THE ANNUAL INCOME GROUP OF
RESPONDENTS
TABLE No.5
TABLE SHOWING-THE MODEL OF THE ROYAL ENFIELD THE RESPONDENTS PRESENTLY OWN

MODEL NO. OF PERCENTAGE

RESPONDENTS
BULLET 500 11 14%

THUNDER BIRD 7 10%

BULLET ELECTRA 15 20%
MACHISMO 500 6 8%

BULLET 350 16 21%

CLASSIC 500/350 17 23%

OTHERS 3 4%

TOTAL 75 100%

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

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.
GRAPH No.5
GRAPH SHOWING-THE MODEL OF THE ROYAL ENFIELD THE
RESPONDENTS PRESENTLY OWN
TABLE No.6
TABLE SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS

PURCHASED BY NO. OF PERCENTAGE

RESPONDENTS
CASH 54 72%

LOAN 21 28%

TOTAL 75 100%

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 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.
GRAPH No.6
GRAPH SHOWING- THE PURCHASING WAY OF THE
CUSTOMERS
TABLE No.7
TABLE SHOWING- THE NO OF RESPONDENTS CONSIDERING
OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD
BIKE

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 27 36%

NO 48 64%

TOTAL 75 100%

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.

GRAPH No.7
GRAPH SHOWING- THE NO OF RESPONDENTS CONSIDERING
OTHER MOTORCYCLE WHILE PURCHASING ROYAL ENFIELD
BIKE
 TABLE No.8
TABLE SHOWING- THE SOURCE OF AWARENESS FOR CUSTOMERS WHILE BUYING THEIR ROYAL
ENFIELD BIKE

MEDIA NO. OF PERCENTAGE

RESPONDENTS
NEWSPAPERS 6 8%
MAGAZINES 24 32%
FRIENDS 11 14%
ROADSHOW 7 10%
TV ADDS 5 6%
WEBSITE/BLOGS 15 20%
SHOWROOM 7 10%
TOTAL 75 100%

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. It’s clear that Royal Enfield should
concentrate on its advertising campaign to reach the customers.
GRAPH No.8
GRAPH SHOWING- THE SOURCE OF AWARENESS FOR
CUSTOMERS WHILE BUYING THEIR ROYAL ENFIELD BIKE
TABLE No.9
TABLE SHOWING- THE MILEAGE OF ROYAL ENFIELD AFTER
PURCHASE OF BIKE

MILEAGE NO. OF PERCENTAGE

RESPONDENTS
45km/lit & Above 5 6%

40-45 16 22%
35-40 26 34%

30-35 18 24%
Below 30 10 14%
TOTAL 75 100%

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

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.
GRAPH No.9
GRAPH SHOWING-THE MILEAGE OF ROYAL ENFIELD AFTER
PURCHASE OF BIKE
TABLE No.10
TABLE SHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE

FREQUENCY OF NO. OF PERCENTAGE

BREAKDOWN RESPONDENTS
VERY OFTEN 8 10%

RARELY 19 26%

NOT AT ALL 48 64%

TOTAL 75 100%

Analysis

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 doesn’t breakdown at all and it is

not problematic and not involved into repair always.

GRAPH No.10
GRAPH SHOWING- THE BREAKDOWN OF BIKES SINCE
PURCHASE OF VEHICLE
TABLE No.11
TABLE SHOWING- THE PLACE OF PURCHASE OF ROYAL
ENFIELD BIKES & THEIR SATISFACTION LEVEL TOWARDS IT
PLACE OF NO. OF PERCENTAGE
PURCHASE RESPONDENTS
SHOWROOM 48 64%
DIRECT SECOND 22 30%
HAND
USED VEHICLES 5 6%
DEALERSHIP
TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE

SATISFACTION RESPONDENTS
YES 57 76%
NO 18 24%
TOTAL 75 100%

Analysis
64% of the Bullet riders prefer to buy their bike from showroom only and 30%
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.Also 76% of respondents are very
much satisfied with the place of purchase of their bike and 24% are not at all
satisfied.

Interpretation
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
place of purchase of their Royal Enfield bike. This also shows there is more
demand for new bikes.
GRAPH No.11
GRAPH SHOWING- THE PLACE OF PURCHASE OF ROYAL
ENFIELD BIKES AND THEIR SATISFACTION RESPONSE
TOWARDS IT
 TABLE No.12
TABLE SHOWING- THE AVAILABILITY OF SPARE PARTS IN THE MARKET

AVAILABILITY NO.OF PERCENTAGE

RESPONDENTS
READILY 51 68%
AVAILABLE
DON’T GET THEM 8 10%
READILY
DON’T HAVE GOOD 12 16%
SPARES SUPPLY
MAJOR 4 6%
HEADACHE
TOTAL 75 100%

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.

GRAPH No.12

GRAPH SHOWING- THE AVAILABILITY OF SPARE PARTS IN

THE MARKET
TABLE No.13
TABLE SHOWING- THE MAJOR PROBLEMS AFTER PURCHASING ROYAL ENFIELD BIKE
PROBLEMS NO. OF PERCENTAGE
RESPONDENTS
HIGH 11 14%
MAINTENANCE
POOR AFTER SALES 7 10%
SERVICE
HIGH PRICE 15 20%

LOW MILEAGE 8 10%

NOISY VEHICLE 3 4%

NO PROBLEM 31 42%

TOTAL 75 100%

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
It is clear that majority of the people who choose Royal Enfield as their bike
don’t have any problems or issues with their bike’s performance.
GRAPH No.13
GRAPH SHOWING-THE MAJOR PROBLEMS AFTER
PURCHASING ROYAL ENFIELD BIKE
TABLE NO.14
TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND
PICK UP

RATING NO. OF PERCENTAGE

RESPONDENTS
POOR 4 6%

AVERAGE 8 10%

GOOD 20 26%

EXCELLENT 43 58%

TOTAL 75 100%

Analysis

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.

GRAPH No.14
GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO POWER AND
PICK UP

TABLE No.15
TABLE SHOWING-THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO COMFORT AND SAFETY
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 7 9%

AVERAGE 12 16%

GOOD 24 32%

EXCELLENT 32 43%

TOTAL 75 100%

Analysis

From the above table it is clear that 9% of the respondents rated very poor and
they were not at all satisfied, 16% of them rated average, 32% of them rated
good and maximum number of respondents i.e. 43% rated excellent and these
respondents were very much satisfied with their bikes comfort and safety.

Interpretation

It is clear that majority of the respondents are satisfied with their bikes comfort
and safety. This shows Royal Enfield has an excellent satisfaction level within
the customers.

GRAPH No.15
GRAPH SHOWING-THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO COMFORT
AND SAFETY

TABLE No.16
TABLE SHOWING- THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO AFTER SALES SERVICE
RATING NO. OF PERCENTAGE
RESPONDENTS
POOR 11 14%

AVERAGE 13 18%

GOOD 27 36%

EXCELLENT 24 32%

TOTAL 75 100%

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.

GRAPH No.16
GRAPH SHOWING- THE RATING BY THE RESPONDENTS FOR
THEIR SATISFACTION LEVEL WITH RESPECT TO AFTER SALES
SERVICE

TABLE No.17
TABLE SHOWING- THE RESPONDENTS OPINION OF THE MAJOR BARRIER FOR NOT PURCHASING
ROYAL ENFIELD BIKES BY NON-BULLET RIDERS

PROBLEMS NO. OF PERCENTAGE

RESPONDENTS
HIGH 11 14%
MAINTENANCE
POOR AFTER SALES 7 10%
SERVICE
HIGH PRICE 15 20%
LOW MILEAGE 8 10%
NOISY VEHICLE 3 4%
POOR PROMOTION 31 42%
TOTAL 75 100%

Analysis

Maximum number of people (42%) described that there is very poor promotion
for the Royal Enfield, 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

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.

GRAPH No.17
GRAPH SHOWING- THE RESPONDENTS OPINION OF THE
MAJOR BARRIER FOR NOT PURCHASING ROYAL ENFIELD
BIKES BY NON-BULLET RIDERS

TABLE No.18
TABLE SHOWING - THE PLACE OF SERVICE OF RESPONDENTS BIKE

PLACE OF NO. OF PERCENTAGE

SERVICE RESPONDENTS
SHOWROOM 34 45%

WELL KNOWN 29 38%

BULLET
MECHANIC
NEARBY GARAGE 4 6%

SELF SERVICE 8 11%

TOTAL 75 100%

Analysis

From the above table we can say that 45% of the respondents prefer their

service of their bike in showroom, 38% of them with well known bullet

mechanic, 6% of them in nearby garage and 11% of them prefer self service to

their bike.

Interpretation

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.

GRAPH No.18
GRAPH SHOWING- THE PLACE OF SERVICE OF RESPONDENTS
BIKE

TABLE No.19
TABLE SHOWING- THE RESPONDENTS OPINION AND LEVEL OF SATISFACTION ABOUT THE COMPANY
TAKING ACTION TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 55 73%
NO 20 27%
TOTAL 75 100%

RESPONSE FOR NO. OF PERCENTAGE

SATISFACTION RESPONDENTS
YES 49 66%
NO 26 34%
TOTAL 75 100%

Analysis
The above table shows that 73% of the respondents accept that the company
takes action towards the complaints lodged by the customers and 27% disagree
for the same. Also the satisfaction level is 66% by the respondents and 34% are
not satisfied.

Interpretation
It is clear that 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.

GRAPH No.19
GRAPH SHOWING- THE RESPONDENTS OPINION AND LEVEL
OF SATISFACTION ABOUT THE COMPANY TAKING ACTION
TOWARDS COMPLAINTS LODGED BY THE CUSTOMERS

Point of satisfaction

TABLE No.20
TABLE SHOWING- THE RESPONDENTS OPINION ABOUT
PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE
ROYAL ENFIELD CLUB

YES/NO NO. OF PERCENTAGE

RESPONDENTS
YES 62 82%
NO 13 18%

TOTAL 75 100%

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

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.

GRAPH NO.20
GRAPH SHOWING- RESPONDENTS OPINION ABOUT
PARTICIPATING IN THE RIDER MANIA ORGANIZED BY THE
ROYAL ENFIELD CLUB

CHAPTER 5
FINDINGS AND CONCLUSION

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 people of this income bracket less than 1,20,000 can easily afford this

Bike.
5. 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. It’s 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 doesn’t 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 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 doesn’t have any problems or issues with their bike’s 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.

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.
 CHAPTER 6
SUGGESTIONS
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.

 Youth oriented promotion- Company should focus more on younger

generation as it can increase sales and market share in Bangalore.

 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 EMI’s.

 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.
 ANNEXUR
E

QUESTIONNAIRE
I am Venu S, a final year BBM student from Presidency College.
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. Thank
you.

RESPONDENT INFORMATION

Name:

1. Age:

2. Gender : Male Female

3. Occupation:

Student Government service

Professional Self employed other

4. Annual Income:

Less than 1, 20,000 1, 20,001-3, 60,000

3, 60,001-7, 20,000 Above 7, 20,000

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

Bullet 500 Thunder Bird

Bullet Electra Machismo 500 Bullet 350

Classic 500/350 others

6. How did u purchase the bike?

Cash Loan

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

Yes No

- If yes which bike did you compare with?

Bike cc

8. Please specify your source of awareness of Royal Enfield while buying

your bike?

Newspapers Magazines Friends

Road shows TV Adds Website/blogs

Showroom Others
9. Please specify your bike’s mileage?

45km/lit & above 40-45

35-40 30-35 Below 30

- Are you satisfied with the bikes mileage?

Yes No

10. Frequency of breakdown of your bike?

Very often rarely Not at all

11. Which place did you prefer to purchase your Royal Enfield bike?

Showroom Direct second hand

Used vehicles dealership

Are you satisfied purchasing there? YES NO

12. How about the availability of spare parts?

Readily available don’t get them readily

Don’t have good spares supply Major headache

13. Any major problems after purchasing Royal Enfield bike?

No problem

High maintenance Poor after sales service

High price Low mileage Noisy vehicle

14. 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

15. How many stars will u rate for your satisfaction level with respect to
comfort and safety of your Royal Enfield bike?

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

17. How does your friend say to your Royal Enfield bike?

Trendy Macho

High Cost Low mileage

Expensive spare parts

Others- If any

18. What do you think is the major barrier for not purchasing Royal Enfield
bikes by non-bullet riders?

High Maintenance Poor after sales service

High price Low mileage

Poor promotion Noisy vehicle

19. Where do you service your Royal Enfield bike?

Showroom Well known bullet mechanic

Nearby garage self service

20. Do you agree that company takes action towards the complaints lodged by
the customers?

YES NO

Are you satisfied with their replies?

YES NO

21. How many times have you suggested your friends or relatives to purchase
of Royal Enfield bikes?

1-2 3-4 More than 5

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

YES NO

23.Any suggestions
BIBLIOGRAPHY
 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
 www.wikipedia.org
 www.enfieldmotorcycles.com