Segmentation and satisfaction level royal enfield

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Segmentation and Customer Satisfaction: A Study
on Royal Enfield
A PROJECT REPORT
Submitted by
SALMALI DUTTA
IAMEE/10/04
In partial fulfilment for the award of the degree
Of
POST GRADUATION DIPLOMA IN MANAGEMENT (PGDM)
INSTITUTE OF ADVANCED MANAGEMENT EDUCATION
AND ENTREPRENEURSHIP (IAMEE)
Kseerasagar(v), Mulugu(M), Medak(D)
Beside Biotechnology Park,
Greater Hyderabad,
Andhra Pradesh,
Pin 5002279

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INSTITUTE OF ADVANCED MANAGEMENT EDUCATION
AND ENTREPRENEURSHIP (IAMEE)
BONAFIDE CERTIFICATE
Certified that this project report
“Segmentation and Customer Satisfaction: A Study
on Royal Enfield”
Is the bonafide work of “SALMALI DUTTA”
Who carried out the project work under my supervision
SIGNATURE SIGNATURE
MR. SRINIVAS M MR. VIKAS GAUTAM
FACULTY (IAMEE) REGIONAL MANAGER-SALES RE
INTERNAL GUIDE CORPORATE GUIDE
SIGNATURE
K. BHARATHI DEVI
DIRECTOR

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DECLARATION
I the under signed, here by declare that the project work written and submitted
was based on the data collected by me and the information given inthis report
has not been copied from any other previous report submitted to any other
university or college in the area of marketing in
“Segmentation and Customer Satisfaction: A Study on
Royal Enfield” As a PGDM STUDENT OF IAMEE:
“INSTITUTE OF ADVANCED MANAGEMENT EDUCATION
AND ENTREPRENEURSHIP”
It is a live project done by me from the date of 7th
May 2011 to 6th
June 2011
SALMALI DUTTA
Roll No : IAMEE/10/04
(IAMEE) Hyderabad,
Andhra Pradesh,
Date:

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ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are essential but not the
only factor to achieve the desired goal. Those must be supplemented by the
guidance assistance and cooperation of experts to make it success.
I am extremely grateful to my institute for providing me the opportunity to
undertake this research project in the prestigious field.
I am deeply obliged to Mr. VIKAS GAUTAM , Regional manager (sales) and
our corporate guide for this project, for his valuable help, guidance and
encouragement given to us throughout the course of this project and for
successful completion of this project.
With profound pleasure, I take this opportunity to convey our sincere gratitude
and appreciation to our President Prof. Hari Gopal and Director K. Bharathi
Devi for their encouragement and support.
It would have been for me to find words to express our gratitude to IAMEE
Faculty Mr Srinivas M for his encouragement in completing this project.
We also convey our thanks to Mr. Dinesh and Mr Raju for the time and effort
they have invested in the creation in this project.
We feel a deep some of gratitude to all those connected to this project.

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INDEX
SL
NO
CONTENTS PAGE
NO
1 CHAPTER 1- INTRODUCTION ABOUT THE PROJECT
International and national scenario, scope, objective and hypothesis of
the study ,methodology and limitations
7
2 CHAPTER 2-COMPANY PROFILE
Introduction about industry and company, organizational structure,
people connected with study, functions of each persons, title of study,
Review of literature and theoretical knowledge.
26
3 CHAPTER 3-DATA COLLECTION, ANALYSIS AND
INTERPRETATION
Tabulation , analysis and interpretation
54
4 CHAPTER 4-LEARNINGS
Professional and personal learning
76
5 CHAPTER 5-CONCLUSION
Concluding remarks and suggestions
78
6 CHAPTER 6-APPENDIX 81
7 CHAPTER 7-BIBLIOGRAPHY 82

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Abstract:
Customer satisfaction is the art of managing customer expectation and
experience. The four dimensions of marketing, called as marketing mix: Product,
Price, Place and Promotion. The present study concentrates on the satisfaction
level of the Royal Enfield Bullet owners in Angul and Secundrabad city. The
segmentation parameters, the targeting group, and the positioning strategies are
evaluated in this study. The product dimension and how customers are so
satisfied to upgrade themselves by buying superior models and the promotional
dimension where Royal Enfield conducts “RIDES” for their customers to GOA,
HIMALAYAS, RANN OF KUCHH, KANYAKUMARI ETC are incorporated
in the study.
The place dimension where Royal Enfield company is very much concerned
about their customers experience right from the time they enter into the
showroom to the time they get the delivery and also in case of servicing in their
workshops. The price dimension is also considered in detail in the study.
The study focuses on the marketing mix of Royal Enfield and the various
parameters for its success in the market as a niche player.
Authors: Salmali Dutta, PGDM I Year
IAMEE B School, Hyderabad

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Chapter : I
Introduction about the
Project

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INTRODUCTION
Marketing is the process of performing market research, selling products and /or services to
customers and promoting them via advertisement to further enhance sales. It generates the
strategies that underlies sales technique, business communication and business development. It
is an integrated process through which companies build strong customer relationships and
create value for their customers and themselves. The term marketing concept holds that
achieving organizational goals depends on knowing or anticipating the needs and wants of the
target market and delivering the desired satisfaction more effectively than competitors. This
root system of marketing take the form of a detailed study of consumer behaviour with respect
to products either in the pre- launch period with a great concern to sales growth. This study is
undertaken keeping in mind, the accomplishment of the various planned goals and objectives
that have been set by the management of respective company.
The necessity for consumer behaviour and marketing study was not considered important
during the period prior to 1950 it was during the time the companies basically following sales
oriented marketing strategy started to change over to a modern marketing strategy of being
consumer oriented. When companies accepted this kind of an approach ,consumers were
finally considered as the king of the market and the necessity of consumer behaviour study
regarding marketing came into lime light .Marketers are getting involved in finding the likes
and dislikes of consumers and trying to find out what those factors could be that influence
a person in making purchase decision.
Customer satisfaction- Measures the gap between consumers experience and expectation. If
a consumer experience matches his expectations then he is satisfied. If a customer’s
experience of a product or dealer service exceeds his/her expectations then the consumer
will be delighted .And conversely if the customers experience falls short of his/her
expectation then the customer is dissatisfied. Thus, customer satisfaction is the art of
managing customers expectations and experience. Many companies are fighting for share of
flat or fading markets. Thus, the cost of attracting new customer is rising. In fact, it costs five
times as much to attract a new customer as it does to keep a current customer satisfied.
Satisfied customers make repeat purchases and also spread positive word of mouth by telling
their good experience with the product.Smart companies go out of their way to delight
customers by delivering more than they promise. Today, it is universally accepted that the
satisfaction of customers is the ultimate benchmark of organizations success. This indicates
that the present market condition is very good & future of the indenting seems to be highly

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potential , namely, customer satisfaction. This study on customer satisfaction is being
associated with one of the leading two-wheeler company the ‘Royal Enfield’.Taking into
present scenario of the two-wheeler market into consideration it seems to be ever booming to
property. During the earlier 70’s people were of the opinion that motorcycle was an expensive
and luxury item. But as the time passed over the decade,the notion was changed at a great
deal. Today out of every 10 houses in urban areas , 8 homes have two-wheeler. Hence it is
evident that two wheeler has changed from luxury item to a necessity.This indicates that the
present market condition is very good and future of the indenting seems to be highly potential
hence many new entrants are entering the industry and making and making the competition
even more enthusiastic.
Market segmentation- pertains to the division of a market of consumers into persons
with similar needs and wants. Market segmentation allows better allocation of a firm’s finite
resources. A firm only possesses limited amount of resources. Accordingly it must make
choices (and incur the related costs) in serving specific group(s) of consumers.
Customer Satisfaction Measurement
Measurement of Customer Satisfaction is a new significant addition to the new ISO9000: 2000
standard.Organizations certified to this standard are now required to identify parameters that
cause customer satisfaction or dissatisfaction and consciously measure them There is
obviously a strong link between customer satisfaction and customer retention. Customer's
perception of Service and Quality of product will determine the success of the product or
service in the market.With better understanding of customers' perceptions, companies can
determine the actions required to meet the customers' needs. They can identify their own
strengths and weaknesses, where they stand in comparison to their competitors, chart out path

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future progress and improvement. Customer satisfaction measurement helps to promote an
increased focus on customer outcomes and stimulate improvements in the work practices and
processes used within the company.
WHY CUSTOMERS QUIT?
 1% due to death
 3% move away
 5% form other friendships
 9% for competitive reasons
 14% because of product dissatisfaction
 68% attitude of indifference towards customer service
WHAT DISPLACES THE CUSTOMERS
 Delay in responding
 Ignore his presence
 Untidy office
 Over changing without prior notice or information
 Delaying fund and dues
 Unmanned telephone and counter.
 Show rules instead of being helpful
 Making him look small, by not showing respect.
 Break promises
 Do not treat his complaint seriously
 When the staff argues with the customer
 Doubt his intelligence and capability.

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THE GLOBAL SCENARIO OF TWO WHEELER INDUSTRY
Global motorcycles, scooters and mopeds market volume Measured in Terms is undoubtedly
going Asia’s way, with a massive chunk of the total Concentrated market in the Asia-Pacific
region. Developing Nations in Asia and Latin America, Which Perceive two-wheelers as a
basic mode of transportation, are expected to remain the most promising markets for scooters,
motorcycles and mopeds. The last two decades have passed comprehensively have
transformed the powered two-wheeler industry worldwide. Demand has outgrown
expectations often, beating the industry’s calculation, with market changing the pattern being
accepted norm. Significant regional markets play a role in market evolution, where in the
wave of consumerism across the globe overhauled the structure of the powered two-wheeler
industry worldwide. Motorcycles and scooters favourites emerge with the male customers,
while mopeds and small scooters ready acceptance found with the female customers. In
Developed Countries like the U.S., Canada, Japan, Germany and Italy, motor bikes and
scooters are Considered to be purchase and enjoyed by the wealthy and riding enthusiasts. In
contrast, Developing Markets Such As China, India and Other South East Asia view
motorcycles, scooters and mopeds as essential modes of transportation. The Chinese
motorcycle industry has emerged as a formidable force in the global motorcycle and scooter
market. The region’s Emerging leadership has ignited a fierce competition, Threatening to
erode the monopoly hitherto Enjoyed by the Japanese majors. Price Competitiveness vis-à-vis
power, quality and comfort are key differentials in today’s motorcycle and scooter industry.
Replacement sales as well as components and accessories Remains a major demand factor
driving the two-wheeler market. Economic growth and rapid urbanization Levels Also propel
sales in the two-wheelers market. Fuel efficiency / mileage, emission Levels, design & style,
demographics, transportation system and engine power are some of the other critical growth
motivators. In Addition, Regulatory and Government policy environment play an important
role in determining the future direction of the industry. The global motorcycle, scooters and
mopeds industry was significantly impacted by the Economic crisis disposable Income that
severely restricted as well as low-interest credit. The world market Experience to decline in
growth rate to 6.6% in 2008, 10.6% from a healthy pace in 2007 witness. The situation
worsened in 2009, with a sharp fall in the market demand for substantial businesses by 6.7%
for the year, and the trend continued for 2010 as well. The Impact of the recession was
severely felt much more mature and in Developed Markets of North America, Japan and
Europe, featuring high double-digit declines in 2008 and 2009. On the Other Hand, Namely
Developing Economies Latin America and Asia-Pacific fared Relatively Better, recording

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marginal fall in Growth rates. Stocks of unsold inventory piled up in warehouses, as sales of
motorcycles regarded as pleasure equipment in the Western region became almost stagnate.
Several companies sprang to give high discount to dealers in order to overcome the scenario.
Most of the 2-wheeler companies either wrote-down or postponed their new product / model
launches during the slowdown period. Beginning with the global economy to turn around,
there is demand for new models from customers, and motorcycle OEMs face a challenging
task of restructuring their old business models to suit present day needs. The Asia-Pacific
market Reigns literally over the Other World Markets, as stated by the new market research
report on Motorcycles, Scooters & Mopeds. Asia-Pacific, home to vast, untapped and fast
growing Markets of China, India, Indonesia, Taiwan, Vietnam, and Thailand presents a
healthy picture for the global two-wheeler industry. Also Asia-Pacific Continues to drive the
future demand for motorcycles and scooters, Project to trail blaze ahead at the fastest growth
rate through 2015. Rapidly Evolving Markets Such as The Middle East, Latin America and
Africa offer tremendous growth potential also in the near future. The Motorcycles segment
comprises the most popular and largest category, accounting for a major share of the global
two-wheelers industry. Highest anticipated growth rate for the segment. The global market for
motorcycles, scooters & mopeds is Highly fragmented, with the players making continuous
marketing efforts to sustain market shares and broaden their customer base.
NATIONAL SCENARIO
Automobile is one of the largest industries in global market. Being the leader in product and
process technologies in the manufacturing sector, it has been recognised as one of the drivers
of economic growth. During the last decade, well¬-directed efforts have been made to provide
a new look to the automobile policy for realising the sector's full potential for the economy.
Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the
policy framework in consonance with WTO requirements have set the industry in a
progressive track. Removal of the restrictive environment has helped restructuring, and
enabled industry to absorb new technologies, aligning itself with the global development and
also to realise its potential in the country. The liberalisation policies have led to continuous
increase in competition which has ultimately resulted in modernisation in line with the global
standards as well as in substantial cut in prices. Aggressive marketing by the auto finance
companies have also played a significant role in boosting automobile demand, especially from
the population in the middle income group.

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Evolution of Two-wheeler Industry in India
Two-wheeler segment is one of the most important components of the automobile sector that
has undergone significant changes due to shift in policy environment. The two-wheeler
industry has been in existence in the country since 1955. It consists of three segments viz.
scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of
two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-
¬04. This high figure itself is suggestive of the importance of the sector. In the initial years,
entry of firms, capacity expansion, choice of products including capacity mix and technology,
all critical areas of functioning of an industry, were effectively controlled by the State
machinery. The lapses in the system had invited fresh policy options that came into being in
late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and
Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign
investment respectively. This controlling mechanism over the industry resulted in: (a) several
firms operating below minimum scale of efficiency; (b) under-utilisation of capacity; and (c)
usage of outdated technology. Recognition of the damaging effects of licensing and fettering
policies led to initiation of reforms, which ultimately took a more prominent shape with the
introduction of the New Economic Policy (NEP) in 1985. However, the major set of reforms
was launched in the year 1991 in response to the major macroeconomic crisis faced by the
economy. The industrial policies shifted from a regime of regulation and tight control to a
more liberalised and competitive era. Two major results of policy changes during these years
in two-wheeler industry were that the, weaker players died out giving way to the new entrants
and superior products and a sizeable increase in number of brands entered the market that
compelled the firms to compete on the basis of product attributes. Finally, the two-¬wheeler
industry in the country has been able to witness a proliferation of brands with introduction of
new technology as well as increase in number of players. However, with various policy
measures undertaken in order to increase the competition, though the degree of concentration
has been lessened over time, deregulation of the industry has not really resulted in higher level
of competition.
A Growth Perspective The composition of the two-wheeler industry has witnessed sea
changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the
total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing
almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of
motorcycles increased to 78 per cent of the total two-wheelers while the shares of scooters and
mopeds declined to the level of 16 and 6 per cent respectively. A clear picture of the

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motorcycle segment's gaining importance during this period is exhibited by the Figures 1, 2
and 3 depicting total sales, share and annual growth during the period 1993-94 through 2003-
04. National Council of Applied Economic Research (NCAER) had forecast two-wheeler
demand during the period 2002¬-03 through 2011-12. The forecasts had been made using
econometric technique along with inputs obtained from a primary survey conducted at 14
prime cities in the country. Estimations were based on Panel Regression, which takes into
account both time series and cross section variation in data. A panel data of 16 major states
over a period of 5 years ending 1999 was used for the estimation of parameters. The models
considered a large number of macro-economic, demographic and socio-economic variables to
arrive at the best estimations for different two-wheeler segments. The all-India and region-
wise projected growth trends for the motorcycles and scooters are presented in Table 1
Table 1: Demand Forecast for Motorcycles and Scooters for 2011-12
2-Wheeler Segment Regions
South West North-Central East & North-East All India
Motorcycle
2835
(12.9)
4327
(16.8)
2624
(12.5)
883
(11.1)
10669
(14.0)
Scooter
203
(2.6)
219
(3.5)
602
(2.8)
99
(2.0)
1124
(2.08)
Note: Compound Annual Rate of Growth during 2002-03 and 2011-12 is presented in
parenthesis
Source: Indian Automobile Industry: Optimism in the Air, Industry Insight, NCAER .
The projections have been made at all India and regional levels. Different scenarios have been
presented based on different assumptions regarding the demand drivers of the two-wheeler
industry. The most likely scenario assumed annual growth rate of Gross Domestic Product
(GDP) to be 5.5 per cent during 2002¬-03 and was anticipated to increase gradually to 6.5 per
cent during 2011¬-12.. The demand for mopeds is not presented in this analysis due to its
already shrinking status compared to' motorcycles and scooters.It is important to remember
that the above-mentioned forecast presents a long-term growth for a period of 10 years. The
high growth rate in motorcycle segment at present will stabilise after a certain point beyond
which a condition of equilibrium will set the growth path. Another important thing to keep in

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mind while interpreting these growth rates is that the forecast could consider the trend till
1999 and the model could not capture the recent developments that have taken place in last
few years. However, this will not alter the regional distribution to a significant extent. Table 1
suggests two important dimensions for the two-¬wheeler industry. The region-wise numbers
of motorcycle and scooter suggest the future market for these segments. At the all India level,
the demand for motorcycles will be almost 10 times of that of the scooters. The same in the

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western region will be almost 20 times. It is also evident from the table that motorcycle will
find its major market in the western region of the country, which will account for more than 40
per cent of its total demand. The south and the north-central region will follow this. The
demand for scooters will be the maximum in the northern region, which will account for more
than 50 per cent of the demand for scooters in 2011-12.
The present economic situation of the country makes the scenario brighter for short-term
demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004.
Both industry and the service sectors have shown high growth during this period at the rates of
8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP
growth to some extent. Taking into account all these factors along with other leading
indicators including government spending, foreign investment, inflation and export growth,
NCAER has projected an average growth of GDP at 6.7 per cent during the tenth five-year
plan. Its mid-term forecast suggests an expected growth of 7.4 per cent in GDP during 2004-
05 to 2008-09. Very recently, IMF has portrayed a sustained global recovery in World
Economic Outlook. A significant shift has also been observed in Indian households from the
lower income group to the middle income group in recent years. The finance companies are
also more aggressive in their marketing compared to previous years. Combining all these
factors, one may visualise a higher growth rate in two-wheeler demand than presented in
Table 1, particularly for the motorcycle segment.
There is a large untapped market in semi-urban and rural areas of the country. Any strategic
planning for the two¬-wheeler industry needs to identify these markets with the help of
available statistical techniques. Potential markets can be identified as well as prioritised using
these techniques with the help of secondary data on socio-economic parameters. For the two-
wheeler industry, it is also important to identify the target groups for various categories of
motorcycles and scooters. With the formal introduction of second hand car market by the
reputed car manufacturers and easy loan availability for new as well as used cars, the two-
wheeler industry needs to upgrade its market information system to capture the new market
and to maintain its already existing markets. Availability of easy credit for two-wheelers in
rural and smaller urban areas also requires more focussed attention. It is also imperative to
initiate measures to make the presence of Indian two-wheeler industry felt in the global
market. Adequate incentives for promoting exports and setting up of institutional mechanism
such as Automobile Export Promotion Council would be of great help for further surge in
demand for the Indian two-wheeler industry. In conclusion we can say that there are great
opportunities and possibilities in the automobile sector. But hike in the fuel price is

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influencing the market of this industry.
There is a need of a very liberal policy for the fuel prices and requires a great good deal with
fuel supplying countries. Though the performance of the industry is better instead of high and
unfavourable fuel policy.
The GDP of India for the first half of the year 2011 is 8.9 per cent.

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Title of the study
In today’s world customer is the key of the success of any business.So , customer behaviour
and its satisfaction level play very key role to sale of the product.That’s why we decided to
keep the project title related to key factor called “Segmentation and Customer Satisfaction:
A Study on Royal Enfield” with reference to Angul in Orissa and Secundrabad in Andhra
Pradesh.
Main purpose of the study was to know the customer buying behavior , demand and
satisfaction level into the minds of customer of Angul and Secundrabad because always
customers say something and does something. At the same time as there are many companies
manufacturing motorcycles, idea about thinking of customer on whether, what, how, and for
whom to purchase the motorcycle.
Therefore, research is required to measure present consumer buying behavior at the purchase
of Royal Endfield bike. So the researcher problem is to identify what are the criteria that
prospective customer takes into consideration before buying the motorcycles. Also after
purchasing are customers being satisfied or not.

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SCOPE OF STUDY
 The main scope of the study is restricted to Hyderabad city in Andhra Pradesh
and Angul in Orissa.
 The study have been made to find the level of satisfaction the customer has
regarding sales and service experience at the showroom and workshops in
Angul (Orissa),Hyderabad and Secundrabad city(Andhra Pradesh) and
customer segmentation for Royal Enfield Classic 500 cc in Hyderabad and
Secundrabad city.
OBJECTIVE OF STUDY
 To make a satisfaction analysis of people on the performance, serviceability,
and company image of Royal Enfield bikes.
 The study will point out the different problems being faced by customers of
Royal Enfield Company.
 To study the different segments that ROYAL ENFIELD targets to sell their
bikes.
 Identify various areas of improvements.
 To offer suggestion based on the findings.
RESEARCH METHODOLOGY
Research Design-
A research design is the detailed blue print used to guide a research study towards its
objectives.It helps to collect ,measure and analysis of data.The present study seeks to find out
the attribute towards buying of bike. The study also aims at finding satisfaction level of
customers at the showroom and at the workshop.So this makes the study a descriptive one.
Type of Research
The study undertaken is of “Descriptive Research” in nature.
Nature of Research
The study is “quantitative” in nature.
It is structured, standardized question based personal and telephonic interview.

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Types of question
The questions asked during the study are “straight forward and limited probing”.
Total number of questions: 24
Total number of closed ended questions: 22
Total number of open ended questions :2
Source of Data
Secondary source
In this study the secondary data is collected from the following sources.
1. Company‘s website
2. Reports of the Company
3. magazines of the Company
4. Books on Marketing and Research methodology
Primary Source
The Primary source of collecting data for research is:
Structured , standardaized personal telephonic interview of customers of Shanker
Automobiles in Angul (Orissa) and Kay Jee Engineers in Secundrabad (Andhra Pradesh).
Research Technique
In this study the ―survey method is used as a research technique. This method helps to obtain
right information from respondents.
Contact Method
In this study structured , standardized exit interview for customers of brandstore in Erragadda
and Kay Jee Engineers showroom in Secundrabad is conducted. Structured , standardized
telephonic interview is conducted for the customers of Kay Jee Engineers in Secundrabad
(Andhra Pradesh) and Shanker Automobiles in Angul (Orissa) .
Sampling plan
Sampling is a process of selection of some part of the population on the basis of which
inference about the population is made. The information about the entire population by
examine a part of it .The effectiveness of the research depends on the sample size selected for
the survey purpose.

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(A)Population:- (I) Kay Jee Engineers in Secundrabad and Brand store in Erragadda.
(II) Shanker Automobiles in Angul
(B)Sampling Unit:-
It means ―“Who is to be surveyed”. Here target population is decided and it is customer who
have purchased their bike within a February 2011 to April 2011 and sampling frame is
developed so that everyone in the target population has known chance of being sampled. So
the survey is conducted particularly in Angul and Hyderabad city.
(C)Sample size:-
For the purpose of proper survey, there is need of perfect research instruments to find out
sample size for more accurate result about buying behavior of bike. The sample size is 30
respondents for segmentation and 296 respondents for booking conformation and follow up
calls.
(D) Sample Element
The sample element of research is customer of Shankar Automobiles and Kay Jee Engineers.

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(E) Sample Extent
The sample extent is limited to Angul , Hyderabad Secundrabad city.
(F) Sample Duration
The sample duration between 7th
May 2011 to 6th
June 2011
(G) Sampling Procedure
The sampling procedure followed is Simple random sampling we use an unsystematic random
selection process ensuring that every element has the same opportunity of being selected.
Research Instrument
In this study the research instrument is ―Questionnaireǁ. It consists of set of question
presented to respondents.The questionnaire is structured & combinations of various close and
open ended questions.Close ended question already have the possible answers and the open
ended question allow the respondents to answer in their own word.
PERIOD OF STUDY
The study was conducted form 7th
May 2011 to 6th
June 2011.
LIMITATIONS OF STUDIES
 The sample is small to be generalized.
 The study has been restricted to Hyderabad, Angul and Secunderabad city.
 The study was conducted only for the period of about one month,so there is time
constraint.
 The study is limited to Royal Enfield owners only.
 The information provided by the respondents was not always authentic which
indicated a vague picture in certain situations of the study.

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Introduction about the Industry
Automobile is one of the largest industries in global market. Being the leader in product
design, redesign, new product development, process design, and utilizing new technologies
and innovative ideas in the manufacturing sector in such a way that it drives the economic
growth of the country. The automobile industry also provides employment to the large number
of peoples. Thus the role of automobile industry cannot be overlooked in Indian Economy. All
kind of vehicles are produced by the automobile industry.
Two wheeler segments is one of the largest volumes amongst all the automobile industry and
it can be divided into three such as Scooters, Motor cycles, and mopeds. In the last four to five
years, the two-wheeler market has witnessed a marked shift towards motorcycles at the
expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to
withstand the bad road conditions. In the process the share of motorcycle segment has
grown from 48% to 58%, the share of scooters declined drastically from 33% to
25%, while that of mopeds declined by 2% from 19% to 17% during the year 2000-01. The
Euro emission norms effective from April 2000 led to the existing players in the two- stroke
segment to install catalytic converters. All the new models are now being replaced by 4-stroke
motorcycles. Excise duty on motorcycles has been reduced from 32% to 24%, resulting in
price reduction, which has aided in propelling the demand for motorcycles. Within the two-
wheeler industry, motorcycle segment grew at a phenomenally high rate of 35% as against a
deceleration of 3% for scooters and 27% for mopeds. In fact, motorcycle has been taking away
the share of scooters and mopeds in a 4.3 million two-wheeler market and surging ahead with
its market share of 68%. The increasing demand from semi-urban and rural segments
may have caused this positive shift towards motorcycles. The Indian two wheeler
industry made a modest beginning in the early 1950 when Automobile Product of India (API)
started manufacturing scooter in India. Until 1958, API and Enfield (motor cycle -350cc bike
and Escorts 175cc) were the only two products. Currently India is the second largest two
wheeler market in the world, it stands next to Japan and China in terms of number of two
wheelers produced and sold.
There are a number of two wheeler companies in India that produce vehicles of extremely
high standard. Some of the leading two wheeler manufacturers in India are Bajaj Auto, TVS
Motor, Kinetic Motor, Suzuki Motor Corporation, Royal Enfield Motors India, Hero Honda
Motors, Yamaha Motor India, LML India and Monto Motors. Many of two wheelers

24. Page | 24
manufactured by these companies are exported to countries in South East Asia, Africa and
South America. Motorcycles are usually priced higher than that of the scooters and mopeds.
. The two-wheeler has always been an intrinsic part of the Indian milieu. It offered and
continues to offer the Indian middle class the freedom from the clutches of an often non-
existent or unreliable public transport system. It offers mobility at a reasonable cost. For a
large portion of the population a scooter or a motorcycle is a necessary accessory for their
livelihood. From the financiers’ perspective, servicing this industry and this customer segment
is an operationally intensive exercise, covering locations that fall outside city limits and being
dependent on correspondent banking relationships and a robust collection infrastructure. In the
case of a downturn, caution enters the equation as financiers look to keep NPAs under control.
The customer typically belongs to the lower-middle and middle class. For this segment,
aspirations have outpaced real income growth leading to a greater propensity to borrow and
spend. With rising inflation, this segment has found itself over-leveraged. The hardening of
interest rates at such a juncture leads to the customer postponing or deferring a new purchase.
This is what has happened to the two-wheeler industry today. The TATA NANO one-lakh-
rupee car is seen to be another threat to the two-wheeler industry but the truth is that the
running and maintenance cost and the sheer convenience of a two-wheeler, given our
infrastructure, are difficult to replace. However we must wait and judge the aspiration impact
of owning a car on the Indian consumer. .
Manufacturers are also working at increased segmenting of the market launching products
aimed a newer segments like girls and women. Newer products, such as electrically powered
motorbikes are also being introduced in the market. The market also is seeing a lot of action in
the 150cc plus market with new models slated to hit the market. At the same time, brand
building and promotional spends of top manufacturers have not shown significant reduction,
keeping the category in the minds of potential customers. Manufacturers have a very strong
relationship with their suppliers and dealers but very often view the financier as an external
‘service provider’. The financier has to have greater integration in the entire supply chain,
working towards maximising customer solutions and services.

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Sales of various company for the first quarter of 2011 (January
2011 and March 2011)
COMPANY NAME Sales
Percentage
HERO HONDA 517099 42
BAJAJ AUTO 322235 26
TVS MOTORS 164163 13
HMSI 136623 11
YAMAHA MOTORS 34476 3
SUZUKI MOTORCYCLES 29369 3
ROYAL ENFIELD 16968 1
MAHINDRA 9558 1

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Chapter : II
Company Profile

27. Page | 27
Introduction about the company
Eicher began its business operations in 1959 with the roll out of India’s first tractor. Today the
Eicher Group is a significant player in the Indian automobile industry with a gross sales
turnover of over INR 19,000 million (424 USD Mn) in the year 2005-06.The Eicher Group
has diversified business interests in design & development, manufacturing and local/
international marketing of Trucks & Buses, Motorcycles, Automotive Gears and components
ROYAL ENFIELD INDIA MOTORS LIMIT
LOGO
Type Subsidiary
Industry Motorcycle
Founded 1955 as Enfield India
Headquarters Chennai, India
Products Motorcycles
Parent Eicher Motors
Website www.royalenfield.com

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ORGANISATIONAL STRUCTURE OF ROYAL ENFIELD
S.No Name Designation
1 Dr. Venki Padmanabhan CEO of Royal Enfield
2 Mr. Ramesh General Manager/Finance
3 Mr.Shaji Koshy General Manager/ Marketing & Sales
4 Mr.Tarun Sharma Zonal Head 1
5 Mr.jaya Pradeep Zonal Head 2
6 Mr.Jadrinder Singh Regional Manager 1
7 Mr.Keshar Tayal Regional Manger 2
8 Mr.Sanjay Kumar Regional Manger 3
9 Mr. Sachdera Regional Manager 4
10 Mr.Pradeep Chaurasiya Regional Manager 5
11 Mr.C.B.Rajesh Regional Manager 6
12 Mr.Vikas Gautam Regional Manager 7
13 Mr.T.Karthikeyan Regional Manager 8
14 Mr.G.Narashima Rao Regional Service Manager
15 Mr.Y.Raju Regional Commercial Executive
16 Mr. Dinesh Territory Service Manager 1
17 Mr.Manoj Kumar Varma Territory Service Manager 2
18 Mr. Parbhakar Brand Store Manager 1
19 Mr.K.Veera Sudhara Rao Brand Store Manager 2
20 Mr.G.Bhanu Parkash Brand Store Service Manager 1
21 Mr.A.Ram babu Brand Store Service Manager 2

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Key Members Designation Functions
Mr. Vikas
Gautam
Regional Manager –
Sales
1. He is responsible for four states (Andhra Pradesh,
Orissa, Chhattisgarh, and Jharkhand) in India.
2. Also responsible for entire Sales activities in four
states.
3. Will be responsible for productivity & profitability
of Company owned Show room outlet for four
states.
4. Handle the dealership management in four states.
5. Strategic planning for regional level.
6. Training to the field team
7. Responsible for tracking customer information,
forecasts and reports and etc.
Mr. Narasima
Rao
Regional Manager –
Service
1. He is responsible for four states (Andhra Pradesh,
Orissa, Chhattisgarh, and Jharkhand) in India.
2. Also responsible for whole four states entire
service activities.
3. Managing the regional service business and
customer satisfaction
4. Will be responsible for productivity & profitability
of Company owned Workshop outlet for four
states.
5. Diagnosis & Analysis of field failures & feedback
to factory on product complaints.
6. Training to the field team
Mr. Y.Raju Regional
Commercial
Executive
1. He is responsible whole regional commercial
activities.
2. Commercial activities like billing of payments,
collection of payments, vehicle dispatching, and
Taxes etc.,
Mr. Parbhakar Brand Store Sales
Manager 1
1. He is responsible for Company outlet sales
activities in Erragadda, Hyderabad.

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2. Also reported to regional manager sales.
Mr. K.Veera
Sudhara Rao
Brand Store Sales
Manager 2
1. He is responsible for Company outlet sales
activities in Erragadda, Hyderabad.
2. Also reported to regional manager sales.
Mr. K.V.Dinesh Territory Service
Manager 1
(AP only)
1. Responsible for all Service related activities (like
Training, Service Camps, meets and rides) at
Dealer Network
2. Improve and implement Dealer system and
standardisation
3. Timely reporting of product issues and clearing of
warranty / FSC on regular dealer visits
4. Managing dealer, Customer complaints and
resolution
5. Achieving Dealer / ASP/ Distributor spares target
and ensuring availability
Mr. Manoj
Kumar Varma
Territory Service
Manager 2
(Orissa, Chhattisgarh
and Jharkhand)
1. Responsible for all Service related activities (like
Training, Service Camps, meets and rides) at
Dealer Network
2. Improve and implement Dealer system and
standardisation
3. Timely reporting of product issues and clearing of
warranty / FSC on regular dealer visits
4. Managing dealer, Customer complaints and
resolution
5. Achieving Dealer / ASP/ Distributor spares target
and ensuring availability
Mr. G.Bhanu
Parkash
Brand Store Service
Manager 1
1. He is responsible for service activities of Brand
Showroom (Company owned outlet)
2. Improving services towards Customer delight and
improve service systems.
3. Responsible for Bay Productivity and Handling
Mechanic & Technicians
4. Also exposure in counter Spares Sales and overall
monitoring of workshop
Mr. A.Ram babu Brand Store Service
Manager 2
1. He is responsible for service activities of Brand
Showroom (Company owned outlet)

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HISTORY OF ROYAL ENFIELD
In 1851 in Hunt End, England George Townsend put up his needle making mill,which he
named Girvy Works.On his passing away his sons George Jr. And his half brother developed
“Townsend Cycle” was reputed for its sturdy frame,a character that all Royal Enfield followed
In 1890 Townsend got himself in financial trouble and he parted away with his financiers
leaving the company to them.
In 1891 Albert Eadie and R W Smith took control and the firm was re-christened “The Eadie
Manufacturing Company Limited”
In 1892 a new company was created to market these new design bicycles called “The Enfield
Manufacturing Company Limited” by October 1892 and Enfield bikes were announced to
public.
In 1893 the word Royal was added (after the Royal Small Arms Company) and thus Royal
Enfield began.The Royal Enfield trademark “Made like a Gun” appeared.
In 1897 R W Smith build himself a quadric cycle a simple bike with four wheels and a French
engine. The Enfield vehicles was awarded the Silver Medal.
In 1899 the first mechanical vehicle was advertised by the Enfield Cycle Company.It was
available in both tricycle and quadric cycle form,powered by a De Dion 1.5hp engine.
In 1907 having headquarters at Redditch produced run-of-the –mill conventional cycles.
2. Improving services towards Customer delight and
improve service systems.
3. Responsible for Bay Productivity and Handling
Mechanic & Technicians
4. Also exposure in counter Spares Sales and overall
monitoring of workshop.

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In 1901 buoyed by the success Smith and Eadie built first
Royal Enfield car and it was on road on 1902 known as
the “Yellow Car” with 8hp De Dion engine.
In 1909 at a motor show they displayed a small 2 1/4 V
twin engine.
In 1914 during the First World War was called on to
supply motorcycles to the British War Department and
even awarded a contract to build bikes for the Imperial Russian Government.
Enfield started using its own engines-a 225cc two-stroke single and 425cc V-twin.Post war it
produced a larger 976cc twin and continued to produce the two-speed 225L until 1929.
In 1915 675cc in-line 3-cylinder 2-stroke prototype was the world’s first with this
configuration and engine type.
In 1917 the officers of the Women’s Police Force were issued Royal Enfield bikes of 600cc.
In 1924 saw the launch of the launch of the first Enfield four-stroke 350cc single using a JAP
engine.
In 1925 the interwar year was a period when the sidecar reached its zenith.Royal Enfield V-
Twin engine Dairyman’s Outfit in the ACU Six days trial and obtained a special certificate.
In 1928 Royal Enfield adopted saddle tanks and center –spring girder front forks-one of the
first companies to do so.
In 1930 Royal Enfield range consisted of 13 models
In 1931 a four-valve, single cylinder was introduced and christened “Bullet” in 1932
FLYING FLEA or AIRBORNE
In 1940 During the second world war, it made the Flying Flea, a 125cc motorcycle designed
to be dropped by parachute with airborne troupes. It was fitted into a steel tubular cage called
the “Bird Cage” with a parachute attached to it.

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In 1947 made a J2- the first model with a telescopic front fork placed Redditch marquee at the
very fore-front of motor cycle design.
In 1948 500cc twin which was in production till 1948
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 Motors Company started off by receiving the Bullet in kits and
simply assembling them.Then they began making the frames. After this Enfield started
sending in parts to be assembled in India.Eventualy they were also manufacturing the
engines, which meant that they were making the complete bike.For the next thirty years the
design of the bikes remained unchanged.
In 1950 several models were introduced:650cc Meteor twin, a 250cc Clipper, a short stroke
250cc Crusader, Super Meteor ,Constellation and the Interceptor.
In 1951 saw the market open up both ways downwards for smaller capacity, light and
manoeuvrable machines and upwards for larger capacity ,high powered and reliable
motorcycle.The Royal Enfield showroom in UK saw everything from 125cc two strokes to
the mighty 700cc Meteor.
In 1955 the Indian Army insisted that they would continue doing business with Madras
Motors only if the Bullet was produced indigenously for its police and army, for patrolling the
country's border.Enfield India Ltd is incorporated as a public limited company and became
India’s first four stroke motorcycle manufacturer.

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From 1955 to 1959, Royal Enfields were painted red, and marketed in the USA as Indian
Motorcycles by the Brockhouse Corporation, who had control of the Indian Sales Corporation
(and therefore Indian Motorcycles) and had stopped manufacturing all American Indians in the
Springfield factory in 1953. But Americans were not impressed by the badge engineering and
the marketing agreement ended in 1960
In 1957, the tooling was sold to Enfield India so that they could manufacture bike components
In 1961, Royal Enfields were available in the US under their own name. The largest Enfield
"Indian" was a 700 cc twin named the Chief, like its American predecessors.
By 1962, all components were made in India.
In 1967 The Redditch factory ceased production
In 1970 the Bradford-on-Avon factory closed, which meant the end of the British Royal
Enfield in 1971
In 1970 Enfield India was a company established in its own rights and with a production line
going full steam,the need for collaboration with Enfield of UK was no longer seen.
Considering the wet, slushy and messy road of India Magdyno gave way to “DELCO”
ignition system.
In 1973 the indigenous Mini Bullet “Sherpa” 173cc was launched.
In 1983 the 50cc Silver Plus and Explorer light weight vehicles were launched.It found market
among the office going males but also among a number of women who found it convenient.
In 1984 Bullet found niche marketing in UK and Europe.The deluxe models appeared, chrome
and metallic colours and 12volt electrical for brighter lightening and easier starting.
In 1990 Bullet 500 was launched in India.(India’s first 500cc bike)
In 1993 the Taurus Diesel was the first production diesel motorcycle in India
In 1994, Eicher Group acquired Enfield India Company.

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In late 1995, the Enfield India firm acquired the rights to the name Royal Enfield motors
limited and first bullet club in Bangalore was launched.
In 1997 Re launches India’s first 535cc –the lightening.
In 2001 The Dare Devils, the motorcycle display team of corps of signals, Jabalpur, forms a
human pyramid of 201 men on 10 Enfield 350cc bikes and rides a distance of more that 200m
In 2002 India’s first cruiser the Thunderbird was launched.
In 2003 the first Rider Mania got together was held in Goa.The Bullet enters the automotive
Hall of Pride at the ICICI overdrive awards.
In 2004 Bullet Electra was launched.The retro styled Bullet Machismo is rated “No. 1” in the
TNS Autocar survey.
In 2005 Royal Enfield celebrates 50 glorious years of motorcycling. The Bullet Electra
features a revolutionary 5-speed left side gear shift that makes the marquee more accessible to
motorcyclists.
In 2007 Royal Enfield launches the all new limited edition of Mchismo 500 LB with
customised accessories.
1997–2007-Ever tighter European emission norms forced the Bullet Standard 350 to end 2007
as its last model year in the EU, so when on-hand stocks were all sold the British-design
engine Bullet became no longer available now. All new models exclusively featured the AVL
'lean-burn' engine. The introduction of a 5-speed gearbox meant that Royal Enfield could 'fix'
one of the long-standing quirks of the Bullet design—the foot-brake is on the left side while
the gearshift is on the right. Accordingly, the Bullet Machismo 350 was equipped with this
gearbox. However, the 'left-shift' gear change provoked a backlash from Indian Bullet
customers, forcing the company to not only continue the Bullet Standard with the traditional
system, but even on the Electra it was offered only as an option, leading to the Electra 4-speed
(traditional) and Electra 5-speed (left-shift) variants. Sales figures indicated that Indian Bullet
customers had shunned the new gearbox, foregoing even the attraction of 5-speed transmission
to keep the gearshift traditional. However, customers outside of India took to the new gearbox
with pleasure, as a result it became standard fitment on all exported models. New

36. Page | 36
developments included the addition of electric start as an option on some models, while
standard on others. In 2007–2008, a limited edition, heavily accessorised 500 cc lean-burn
Machismo 500 was launched as the ultimate touring bike. Due to extremely limited production
(500 units)and high price, this became a rare bike. The Machismo 350 was discontinued.
Since 2007-As a result of work spanning several years, a new set of engines was introduced.
These were the Unit Construction Engines (UCE). The 350 cc UCE found use in the domestic
model Thunderbird Twin Spark in a configuration with two sparkplugs per cylinder, with
integrated 5-speed left-shift gearbox. It has not been featured on any of the Bullet models,
domestic or otherwise. As of 2011, the old cast-iron engine has been completely phased out,
including in the Standard 350 model. Now all Royal Enfield bikes are only available with the
all-aluminium UCE engine. Still, the old engine attracts its own following, most notably for
the signature 'thump' it produces which is perceptibly louder than on the new bike.
The 500 cc UCE features fuel injection, and has greater power than any Royal Enfield 500 cc
motor. The 500cc UCE, with an integrated 5-speed gearbox, powers the current Bullet Classic
model. Starting in 2009 this engine was available only in the EU to satisfy emissions
regulations, but is as of 2010 is available in the United States under two frame models, the
Bullet Classic C5, or the Bullet G5, which looks similar and shares paneling with the earlier
AVL Electra models. Models classic 350 and 500 cc is an engine that gives the bike better
acceleration, high speeds and lower emissions. But while the engineering is modern, the bike's
appearance is deliberately nostalgic. The latest models are designed to lead an export drive,
but they are also meant to appeal to aspiring Indian consumers long acquainted with retro
styles. make the new UCE Engine right. True, this new engine provides Approx 40% more
power with 30% less parts.

37. Page | 37
A Record feat
The Army Service Corps (ASC) Tornados Team successfully mounted 54 Persons on a
single Royal Enfield 500 Motorcycle on Sunday the 28th
of November 2010. The motorcycle
used for this attempt did not have any modifications in the Engine for this feat.
The Royal Wizard
The smash hit movie Harry Potter and the Deathly Hallows is said to have given Royal
Enfield and Watsonian Squire sidecars a significant popularity. In the film, Royal Enfield 500
fitted with a Watsonian sidecar is featured with Hagrid riding the bike and Harry Potter sitting
in the sidecar whilst they zip through London at night, dodging traffic.
Infrastructure and technology collaboration
To manufacture quality bikes that are well known worldwide for their reliability and
toughness state -of -the -art infrastructure is required, and that is just what RoyalEnfield has
done at Chennai manufacturing facility.An active in- house research & development wing is
constantly at work to meet changing customer preference and the challenge of Indian and
international environment standards. When introducing a new product, this team undertakes
all related planning which includes a rigorous customer contact programme, design,concurrent
engineering and testing process. The bike design team at royal Enfield is well known equipped
with high-end CAD/CAM workstation and the latest modelling software .top-notch designers
work continuously to come up with innovative bikes to meet the market’s expectations. Royal
Enfield was also amongst the first Indian companies to introduce enterprise resources planning
(ERP) systems to manage its operations .it also has an online supply chain management
system in operation
Collaborations
Royal Enfield has technology tie-up with:
AVL of Austria. for new engines.
DB Designs, UK for styling.
Fritz Egli of Switzerland. for high power engines for 535cc and 624cc.
Cranfield university, UK.
Criterion Engineers, UK for a new 5 speed transmission system.
Manufacturing
Royal enfield manufacturing operations,go through a series of modernisation
and improvement efforts , with a number of automated processes. The company has put in
place modern manufacturing practice like cellular layouts, statistical process controls and
flexible manufacturing system.The Chennai manufacturing facility has received the ISO 9001

38. Page | 38
Certification for managing its operations in a clean and safe environment, it has obtained the
ISO 14001 Quality certificate.Royal Enfield ensures that all components used in bikes are
sourced from the best vendors in the Indian automotive industry, who are geared to supply
according to the company’s stringent quality standards.The company works closely with all of
its suppliers ,giving them technical and managerial support while maintaining practice like
direct-on line and vendor self certification.
Handcrafted
Royal Enfields are a rare breed in an age of mass-produced,user-friendly predictability. These
are mechanical motorcycles, handcrafted with love, engineered with purpose, and designed in
a way that gives each machine its own unique character. This character is reinforced by Royal
Enfield's cultural DNA - by where it was born, and by where it is now built. Its classic British
pedigree shows in every line, while the gleaming new engine hints at the devotion that has
enabled this legendary marque to thrive in the outskirts of Chennai. Over 300 highly skilled
people hand assemble each Royal Enfield. From machine shop to paint and polish, there is
care in every step of the bike manufacturing process. An active in-house Research &
Development team works to meet the demands of a dynamic industry, including changing
customer preferences and the challenges that come with international environmental standards.
The Design team is equipped with the latest in CAD/CAM workstations and modeling
software. Royal Enfield also collaborates with international companies to ensure they are
always atop the highest quality control standards and continue to make an impression in the
world market. Many of the company's staff are third generation, a true testament to the Royal
Enfield loyalty and ongoing success of their motorcycles. From engine and gearbox assembly
to hand painted gas tanks, each step of our manufacturing process makes Royal Enfield a
world-class machine.
Inspired by the past, engineered for the future
To vintage enthusiasts, a Royal Enfield is what a motorcycle should look like. It has a strong
presence and makes a confident, but subtle statement about its rider. Riders are part of a
community where customizing their motorcycles and their riding adventures are part of their
identity. Below pictures of ROYAL ENFIELD PLANT AT CHENNAI.
Originality - Outfit your Royal Enfield with accessories to fit your custom design. Choose
from seats, handlebars, wheels, exhausts, carriers, or even a side car to make your bike unique
to you.

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Reliability - The Bullet has existed for over half a century because of its reliability on rugged
roads, and a promise to deliver the authentic Royal Enfield adventure to each of its riders. It is
the bike of choice for touring companies traveling to the world's highest navigable roads in the
Himalayas, also the testing grounds for the new Keihin EFI system.
Affordability - No other motorbike on the market can offer the versatility of Royal Enfield,
and your custom design does not come with a large price tag.
Royal Enfield is both the revival of an old tradition and the beginning of a new adventure, and
we continue to commit to building a world-class motorbike.
Marketing network
You can fell the pulse of yours customers, only if you get close to them this though process
has driven royal Enfield to set up has wide network of 13 marketing offices,223 dealers in all
major cities and towns, 25 spare parts distributors and stockiest and 150 authorized service
centers. These exports motorcycles to over 30 countries like the USA,Japan,
Bahrain,UK,Germany and many European countries through 5international offices ,25
importers of and over 200 dealers across the globe.

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ROYAL ENFIELD REVIVING UP
Siddhartha holds a 1994, BA (Hons) in Economics, St Stephens College;Delhi University,First
worked at as a trainee at Royal Enfield in 1995. 1997, postgraduate diploma in Mechanical
Engineering, Cranfield University; 1998, MSc in Automotive Engineering, University of
Leeds.In 1998 , sidhhartha joined the eich-er group (owned largely by his family), and worked
in the marketing division of eicher tractors for a year.Siddharth Lal is an avid motorcyclist and
has been for several long trips on his Bullet in India and in Europe. Worked with Royal
Enfield from 2000-04,He became Chief Executive Officer of Royal Enfield Motorcycles in
2001 ,2004-06, Chief Operating Officer, Eicher Group; since 2008, Managing Director, VE
Commercial Vehicles, a joint venture with Volvo Group. He is also credited with creating the
GIS & Digital Maps division of Eicher Goodearth Ltd.
His varied experience in the automotive industry, both in India and overseas, has endowed him
with deep insights and expertise on the industry. He learnt shop-floor practices and highly
sophisticated manufacturing processes while working at MAN Nutzfahrzeugen – a large
German commercial vehicle manufacturer. He has also had stints at Fritz Egli the renowned
motorcycle specialist in Switzerland ,and later joined royal en-field’s importer in the UK,
before his tenure in the Materials and Product Development departments of Royal Enfield in
Chennai.
Having survived the British parent's, demise in 1971, the Indian engineers opted for
faithfulness over inventiveness. For decades, they produced the workaday Bullet and the
Thunderbird Twinspark for the local market.The name of Royal Enfield has also found a
second life in India long after the British parent closed its factory gates in the early 1970s. The
motor-cycle marque, with a cannon crest and the motto "Made Like a Gun", is one of a
number of British-sounding brands that Indian owners keep alive more than 60 years after

41. Page | 41
their country won independence from British rule.Royal Enfield to go global from its
manufacturing base in Chennai in the southern state of Tamil Nadu. By the late 1990s, Royal
Enfield was facing bankruptcy. The 1950s technology had a reputation for unreliability and oil
leaks, and was being overtaken by models from Hero Honda, Maruti Suzuki and Bajaj Auto.
Eicher, which had bought the company in 1991, was considering closing it down. But then Mr
Lal, the youthful scion of the family that controlled Eicher - and a proud owner of a Royal
Enfield bike returned to India after studying in the UK. He asked if he could try to rescue the
marquee, and oversaw its revival as chief executive from 2004 to 2006. "If it was a matter of
selling a few more bikes, it was worth giving it a try," he says.Mr Lal's first move was to hire a
management team with experience of making Japanese bikes. Then he focused on up-grading
Royal Enfield's technology (just as Harley-Davidson had done with its adoption of the
Evolution engine in 1984).Under the newly appointed CEO of Enfield India, Siddhartha Lal,
Eicher undertook major investment in the ailing firm. This was started with the purchase of
trademark and intellectual property rights of the defunct British Royal Enfield firm, changing
the name of the company to Royal Enfield Motors. Many management and production
changes were made, with the production process being streamlined and excess capacity
redistributed. His targets were cash break-even in12months,net break-even in 18 months,net
profit in 24 months.He started as Head of sales, Marketing and product development but soon
realized that he needed the top job to effect change.The first thing he did after he took over
was to shut down Enfield’s new Jaipur plant. Next ,stopped the dealer discount that were
costing the company up to Rs 80 Lakhs a month. Without the large-scale Army/Law
Enforcement orders to bail the company out, there was only the individual sales route in which
the company had to perform if it were to survive at all. The company also faced the difficult
task of catering to a very diverse market. To preserve the Bullet's nature and reputation as a
classic British bike, as the Raja Gaadi, and to attract youngsters away from the newly
appeared performance motorcycle market, the Bullet marque was split up into two. The Bullet
Standard 350 featured all the increased manufacturing quality and reliability but was
maintained in the the traditional 'Bullet' look, available only in black. A new model, available
in more colours and chrome accents, a CV carburettor, and gas-charged shock absorbers - but
with the same engine and gearbox as the Standard - was launched. This model was called the
'Bullet Electra'. The Electra 350 went on to become the best-selling Royal Enfield model,
accounting for around half the company's sales.
During the past five years, Royal Enfield has increased sales to 50,000 units a year, and
operating margins have reached more than 10 per cent on turnover for the past nine months of

42. Page | 42
Rs3bn ($64m, €44m, £39m), after an investment of Rs650m. Its motorcycles are exported to
30 countries.
Eicher Motors believes the British retro feel will find favour with a new generation of
motorcycle enthusiasts. "We have the product. It's beautiful. It's not a speed monster or a
Japanese commuter bike. It's something completely different. We are trying to create a brand
that will become global," says Siddhartha Lal, chief executive.
Present status of the organization
Eicher Motors consolidated net sales for the period under review was up 33.35 per cent at Rs
1,383.59 crore, compared to Rs 1,037.51 crore in the first quarter last fiscal. Eicher Motors
posted 82.24 per cent increase in consolidated net profit for the first quarter ended March 31,
2011 at Rs 73.28 crore. For the three months period ended March 31, 2010, the firm's
consolidated net profit was Rs 40.21 crore."After posting record highs in Q4 2010 and also for
the full year of 2010 in terms of volume and profitability, Eicher Motors has done exceedingly
well to carry the growth momentum into Q1 (of 2011)," Eicher Motors Managing Director and
CEO Siddhartha Lal said in a statement.
In case of VE Commercial Vehicles (VECV) category, the trucks and buses division sales
volume in the five tonne and above segment grew by 30.5 per cent over the same quarter last
year to 12,505 units.
In the high-end European heavy duty segment, due to issues specific to the mining segment,
Volvo Trucks India's sales fell by 34.2 per cent compared to first quarter of 2010."I believe
that this is a temporary phenomenon, and that Volvo Trucks India will be back on growth
trajectory very soon," Lal said.The Royal Enfield motorcycle division sold 16,968 units, up
36.2 per cent compared to the same quarter last year."We now have capacity to produce and
sell at a run rate of more than 6,000 units a month. We are continuing with necessary steps to
further increase this capacity," the statement said.
ROYAL ENFIELD Strategies- Promoting riding-
As the only genuine touring motorcycle manufactured in India, Royal Enfield has more
recently stayed away from regular mass media advertising and has concentrated more on
building its brand around the values that the brand stands for - riding and eating up the miles.
Royal Enfield strongly promotes leisure motorcycling as a lifestyle and encourages the Royal
Enfield riders/owners to keep riding.We feel that organising such fun trips is a good break for
our customers who would otherwise not be too inclined to go for a spin on their bikes. This
gives them a chance to make new friends,” Mr Ravichandran said.

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Quite unlike volume-driven models from the stables of Hero Honda and Bajaj Auto, Royal
Enfield motorcycles are meant for the passionate rider who will buy them irrespective of the
price. Little wonder, therefore, that some of them are already part of dedicated clubs. It is to
the others that ‘Keep Riding’ will reach out.
Building Camaradine-The company’s Web site is one of the major communication tools
through which dealers and brand stores make known the trips planned in the coming weeks.
“The company is not looking at this activity in terms of sales leads or enquiries. Our objective
is to facilitate a sense of camaraderie where one makes a new friend or ends up buying a new
bike,” Mr Ravichandran said.
SALES AND SERVICE TRAINING FOR ROYAL ENFIELD DEALERS
The Sales training was conducted on 13th
May 2011 by Mr.Vikas Gautam, Regional Manager-
sales,Mr and Mr Dinesh,Territory Service Manager (AP) on “Learn Apply Share and Guide”
for Dealers and showroom staffs to enhance customer experience right from the customer
steps in the showroom till he gets the delivery.
The Service training was conducted on 14th
May 2011 by Mr.Narsimha rao, Regional
manager-service and Mr Dinesh,Territory Service Manager (AP) on Workshop Management
and Company policy.The service training was conducted to build a strong bond between the
different dealers in Andhra Pradesh to enhance the co-operation and support among the
dealers.

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RIDES FOR ROYAL ENFIELD CUATOMERS
Besides manufacturing the legendary motorcycles which have become synonymous with an
adventureous and leisure motorcycle culture across the world,Royal Enfield also conducts
rides all over India like Ladhak ,Rann of Kutch,NH17 road on Mumbai-Pune highway,

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Rajasthan,Goa ,Kanyakumari etc, which give a taste of adventure and with a closer look at the
intricacies of the wonderful terrains,the people and the culture of the region.Each ride has
medical,logistic and technical backup ensuring the well being of all the men and their machine
on these rides.
ONE RIDE-Starting 2011 the FIRST Sunday of April came to be celebrated as the ONE
RIDE day where Royal Enfield owners all over the world were encouraged to take their
motorcycles out and ride. This year the ONE RIDE took place on the 3rd of April and was
celebrated across the world. This celebration is in line with Royal Enfield’s philosophy of
promoting the adventure and leisure riding under its 'keep riding' initiative.This was a ride for
camaraderie and unity where the roads came alive with the distinct thump of Royal Enfield
machines. The event became big with the support of all riders and enthusiasts who came
forward and joined in the celebrations.Perhaps one of the largest celebrations of the ONE
RIDE was on home ground in Chennai. Over 140 bikers assembled at the Besant Nagar beach
to celebrate the ONE RIDE. The CEO of Royal Enfield Dr Venki Padmanabham was one of
the prominent riders in the group. Major rides happened at places like Ambala, Gurgaon,
Delhi, Jaipur, Bikaner, Udaipur, Chandigarh, Agra, Lucknow, Muzzafarpur, Patna, Allahabad,
Deoria, Kolkata, Hyderabad, Ranchi, Vizag, Bangalore, Mangalore, Mysore, Madikeri,
Cochin, Kottayam, Nasik, Indore, Bhopal, Kolhapur ,Goa Mumbai and Pune. Internationally
the ONE RIDE was also celebrated and riders rode out at following locations. Photographs
and live tweets were sent in from some of these locations also
1. Australia 2. Korea 3. Japan 4. Nepa 5. Dubai 6. Luxembourg 7. Spain 8. UK
9. Argentina 10. USA
BULLET BABA-STRANGE BUT TRUE
On National Highway 65, at Chottila outside the Rajasthani city of between Jodhpur and Bali,
is a temple to a Royal Enfield motorcycle. Its rider Om Singh Rathore,son of village leader
met an unfortunate end in a collision with a tree two decades ago, but his revered motorcycle,
which is believed to have paranormal powers, lives on.The machine was immortalised when
local people deified the dead rider. Now the "Bullet baba", named after the legendary Bullet
model that has been in production for more than 50 years in India, is a roadside shrine for
truckers and fertility-seekers..The bike returned to the accident spot each time it was seized
and put in the police station compound,inspite of empting the fuel tank and bounding the bike
with iron chains.“Dead” Rathode rescues all the people who meet with accident on that

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highway.In the boardroom of Eicher Motors and at the roadside shrine in Rajasthan,
executives and pilgrims share faith in the immortal appeal of the Bullet. This death-defying
union of British engineering and Indian devotion, they believe, opens hearts and markets.
CORPORATE SOCIAL RESPONSIBILITY-
Royal Enfield supported The International Expedition for Cancer Advocacy and
Survivorship, aimed at spreading awareness on cancer in the remote areas of Ladakh. The
expedition was led by Capt Dr Ritu Biyani who has been actively involved in this arena for a
long time.Was held from the 11th of September to the 26th of September 2010, the event was
a 15 day rally from Leh to Chandigarh. Cancer survivors, caregivers, healthcare professionals
and all those who wished to support the cause and show solidarity were eligible to be part of
the campaign. The expedition included motorbike riders and pillions, four wheeler drivers and
co-passengers, and fund raising for the foundation’s ongoing projects.
The expedition aims to inculcate a positive attitude among people affected by cancer, and to
generate peer support among participants by helping raise awareness through workshops .
DEALER PROFILE-KAY JEE ENGINEERS
ADDRESS-1-8-20 and 20/A ,minister road secundrabad-5000003
PROPREITER- R SRINIVAS
ESTABLISED :Started the journey with royal enfield in the year 1954 as Authorised dealer.
Range of providing service- Secundrabad Area

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VALUES OF KAY JEE ENGINEERS
 TRUST
 SATISFACTION
 PASSION
VISION
To make Kay Jee Engineers the dominant dealer for best service provider and build on
trust by their all customers.This they hope to achieve by
 Building transparency in all our dealings
 Understanding the needs of customers and offering them the superior products
and services
MISSION
 Understanding the needs of customers and offering them the superior products
and services.
 Building long lasting relation with their customers and Royal Enfield.
DEALER’S TIE UP
 Kay Jee Engineers provides facility of finance and insurance to the customers
at a time.So customers does not need to go to any where finance and loan.
Kay Jee Engineers Dealers Showroom and the bikes kept for test drive.

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.Finance Tie up
 HDFC
 INDUSIND
Both finance providers are having good reputation in the market.Also customers are free to get
finance from any finance company.
Insurance Tie up
 BAJAJ ALLIANZ
RIDES- Every year the dealers conduct 2-3 tours for the customers to different locations.The
recent ride was conducted in February 2011 to Humpy,starting from the showroom.The ride
was for two days.Other rides were to Srisailum,Kurnool etc.
ACHIEVEMENTS
 ROYAL ENFIELD REGION 4 BEST DELEAR AWARD 2006
 ROYAL ENFIELD REGION 5 BEST SALES PERFORMANCE 2009
 ROYAL ENFIELD REGION 5 BEST SALES PERFORMANCE 2010
ERRAGADDA BRAND STORE WORK SHOP AND STORE FOR SPARE PARTS

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ROYAL ENFIELD Hyderabad Brandstore Erragadda and Kay Jee workshop
Profile of the product:
Royal Enfield bullet electra 5s
The new seat is richly padded for greater support and comfort over long rides.New gas filled
rear shock absorbers improve rear suspension ensuring a more compliant ride. Improved
LooksNew metallic colours, and three dimensional graphics on the tank enhance the visual
,appeal of this already attractive machine.White dials, chrome mirrors and an redesigned chain
case cover add classic appeal to this motorcycle.
Improved Technology-The new glass wool silencer lets you enjoy the traditional beat of the
Bullet.Its Transistor Controlled ignition ensures a longer spark as well as improved battery
charging.
Royal Enfield Bullet 350 Standard
The Royal Enfield Bullet 350 Standard has proven itself over 45 years in the toughest of
conditions. Finished in Black colour this motorcycle retains the classic bike appeal with tank
emblems and deep valance mudguards. Now with a heavier crank and glass wool silencer.

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Royal Enfield Thunderbird Twinspark
The new Royal Enfield
Thunderbird Twinspark
offers an unmatched cruising
experience for the Enfield enthusiasts as well as those used to Indo-Japanese
motorcycles.With an integrated gearbox transmission losses are reduced and the engine
develops 20BHP of power and 28Nm of torque.Symmetrical Twin Spark Plugs for better
combustion leading to better power and fuel efficiency. Featuring attractive cruiser styling, gas
filled shock absorbers, lots of chrome and disc brakes the Thunderbird has been upgraded to a
Digital Transistor Controlled Ignition System with variable ignition timing and a larger CV
carburettor for increased performance .Larger 6-plate clutch for smoother shifting and longer
clutch life
ROYAL ENFIELD CLASSIC 350cc and CLASSIC 500cc
Classic 500cc
comes to India. Armed with a potent fuel injected 500cc Unit Construction engine, twinspark,

51. Page | 51
aircooled 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.
THEORETICAL KNOWLEDGE
MARKET STRATEGY
It is those marketing decision-variables which when blended together will form a marketing
strategy designed to satisfy the firm’s customers. The major instruments of marketing mix is
in the hands of management and they are:
PRODUCT MIX:
The aggregate of products offered for sale by a firm. The product mix may be measured in
breadth (i.e., the number of product lines carried), or in depth (i.e., the assortment of sizes,
types, colors, and style within each product line).
PROMOTION MIX:
The selected combination of advertising, publicity, sales, promotion, and personal selling used
to communicate, which inform, and sell goods to the customer.
PRICE MIX:
The establishment of a realistic price framework to maintain a company’s competition in the
market place.
PLACE MIX:
The decision taken to market the goods through a particular channel to achieve the most
economic cost effective result.
PERSONNEL MIX:
The decision taken to recruit and develop a group of employees to implement the marketing
program and provide customer satisfaction effectively.
AFTER SALES SERVICE:
It is a business activity by which a company serves the customer in post sales period. It may
be regarded as an attribute of the product itself. Customer services (i.e., after sales services)
and delivering quality services is the major issue determining the competitive
edge of organizations.

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Porter’s Five Forces:
Bargaining power of suppliers:
Suppliers tend to be powerful when they’re concentrated or organized, when there are few
substitutes, when the supplied product is an important input, when the cost of switching
suppliers is high, and when the supplier can integrate down stream.
Bargaining power of Buyers:
The bargaining power of buyers is the impact that customers have on an industry. If the buyers
possess strong or growing bargaining power, the market conditions are such that there exists
many suppliers to a few buyers. Such a segment becomes unattractive since the buyer sets the
price. Buyers are powerful if they are concentrated, if the product represents a significant
fraction of the buyer’s costs, if buyers are price sensitive or when they can upgrade upstream.
The buyer power becomes insignificant if buyers’ switching costs are high, if buyers are
fragmented or if producers threaten forward integration. The power of buyers is the impact
that customers have on a producing industry. In general, when buyer power is strong, the
relationship to the producing industry is near to what an economist terms a monopsony - a
market in which there are many suppliers and one buyer. Under such market conditions, the
buyer sets the price. In reality few pure monopsonies exist, but frequently there is some
asymmetry between a producing industry and buyers.
Threat of Substitute Products:
In Porter's model, substitute products refer to products in other industries. To the economist, a
threat of substitutes exists when a product's demand is affected by the price change of a
substitute product. A product's price elasticity is affected by substitute products - as more
substitutes become available, the demand becomes more elastic since customers have more
alternatives. A close substitute product constrains the ability of firms in an industry to raise
prices. The competition engendered by a Threat of Substitute comes from products outside the
industry.
Threat from new Entrants:
It is not only incumbent rivals that pose a threat to firms in an industry; the possibility
that new firms may enter the industry also affects competition. In theory, any firm
should be able to enter and exit a market, and if free entry and exit exists, then profits
always should be nominal. In reality, however, industries possess characteristics that
protect the high profit levels of firms in the market and inhibit additional rivals from
entering the market. These are barriers to entry.

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SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA
STRENGTHS
 Experience in the market
 Established brand
 Committed and dedicated staff
 High emphasis on R and D
 Established market channel
 Blend of traditional and modern
style and technology.
 International demand
 Customers use the brand to
enhance their status/image
 Effective advertising capability
 No competition in 350cc and 500cc
bikes
 ERP operated operations
 Online supply chain management
 Proven product durability
 Customer retention
WEAKNESSES
 Weak product diversity
 Not much emphasis on aggressive
selling
 Only plant to meet the national and
international demand for the
product and spare parts
 Longer waiting periods
 High price
 No bike in entry and executive level
segment
OPPORTUNITIES
 First mover advantage
 Growing premium segment
 Expansion of target market
(including women)
 Increasing dispensable income
 Global expansion
 Offering better finance scheme
THREATS
 Cut throat competition
 Increasing players in the market
 Raising cost of raw materials
 Increasing rates of interests on
finance
 Entry of other players in the 350cc
segment
 Entry of exclusive foreign players

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Chapter : III
Data collection, Analysis
and Interpretation

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SEGMENTATION OF ROYAL ENFIELD CLASSIC 500cc
1.AGE WISE CLASSIFICATION
Data:TABLE 1
Age Respondents Percentage (%)
Below 25 4 13
Age 25 - 30 8 27
Age 30 - 45 17 57
more than 45 1 3
Total 30 100
Analysis: With reference to Table:1 it is evident that Royal Enfield is mostly preferred by
the Middle aged people,57% of the respondants fall under this age group of 30-45 yrs. Below
25 is 13% ,between 25-30yrs is 27% and above 45yrs is 3% .
Interference- Majority of the respondents fall under the age group of 30-45 and hence
Royal Enfield is mainly preferred by Middle aged people in Hyderabad.

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2.Education wise classification
Data: TABLE 2
Education Respondents
Percentage
(%)
Graduate 22 23
Post Graduate 7 73
others 1 4
Total 30 100
Analysis: With reference to Table – 2, we can find out the educational qualification of the
respondents. Out of 30 respondents 73% are graduate, 23% are postgraduate and 4% are
professionals.
Interpretation: All the respondents are highly educated.

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3.Classification based on mode of purchase
Data : TABLE :3
Mode of purchase Respondents
Percentage
(%)
Finance 14 47
Cash 16 53
Total 30 100
Analysis: With reference to Table – 3, we can find out that 53% of the respondants purchased
their bike by paying the full amount in cash.47% purchased the bike through Finance.
Interpretation: Majority of the Royal Enfield customers are high profile customers. So they
purchase the bike with cash.

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4.Occupation wise classification
Data: TABLE :4
Occupation Respondents Percentage(%)
Own Business 15 50
Doctor 2 7
Engineer 2 7
Bank/Insurance Employee 1 4
Private Company employee 1 3
Govt. Employee 1 3
IT/Software employee 3 10
Accountant (CA) 1 3
Student 1 3
others 3 10
Total 30 100
Analysis- With reference to the TABLE: 5 we can see that 50% of the respondents are
businessmen. Followed by 10% are IT Employee,7% Doctors and Engineers,4%
Bank/Insuarance employee, 3% Studants,Accountants,Government employees and Private
company employee.

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Interpretation- Majority of the respondents are Businessmen.
5.Income wise classification
Data: TABLE :5
Income Respondents Percentage(%)
Below 25000/- 5 19
25K -50K 11 42
50K - 1Lakhs 4 16
More than 1Lakhs 6 23
Total 30 100
Analysis- With reference to TABLE :5 we can find that nearly 42% of respondent’s income
falls in between 25000-50000, while 23% of the income of the respondents is more than
1Lakh. Followed by 19% below 25000 and 16% between 50000-1lakh.
Interpretation- Majority of the respondents income fall under Rs 25000-50000.

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6. Classification based on distance travelled per day
Data: TABLE :6
Distance Respondents Percentage(%)
Below 25KM 5 16
25KM - 35KM 5 17
35KM - 50KM 8 27
50KM-100KM 12 40
Total 30 100
Analysis- Above Table :6 shows that 40% of the respondents use Royal Enfield to travel
50Km-100Km followed by 27% travel 35-50Km, 17% travel 25-35Km and remaining 16%
travel below 25Km.
Interpretation- Majority of the respondents use Royal Enfield to travel 50KM-100KM per
day.

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7.Classification based on source of information
Data: TABLE :7
Sources of information Respondents Percentage(%)
Advertesiments 0 0
Websites 6 20
Informed by friends(Reference) 17 57
Others(including already have own
RE vehicle) 7 23
Total 30 100
Analysis: Table 7 shows the sources of awareness among the respondents. It is clearly seen
that the main source by which people come to know about Royal Enfield Bullet is through
friends and relatives 57%.Followed by websites 20%, followed by 23% respondents who
already own a Royal Enfield.
Interference: The source of awareness for majority of respondents is through friends and
relatives.

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8 Classification based on purpose of use
Data: TABLE :8
Purpose of Use Respondents Percentage(%)
To Commute between the Residence and
Office 15 47
To Go arround with friends 6 19
To go for long rides 7 22
To move around as part of work 4 12
Total 30 100
Analysis- TABLE 8 shows that most of the respondents use their Royal Enfield Bullet for all
the above purpose. Nearly 47% of the respondents use their bullet for office, followed by 22%
use to go for long rides,19% use to go around with friends and 12% use RE to move around
as part of work.
Interpretation- Majority of the respondents utilizes their Royal Enfield bike to commute
between office and residence.

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9.Classification based on first time buyer of two wheeler or not
Data: TABLE: 9
CUSTOMER OWNS A
BIKE OR NOT Respondants Percentage(%)
Switched from Other
competitor to RE 18 60%
First time Buyers of 2
wheeler (Royal Enfield) 12 40%
Total 30 100%
Analysis- Table 9 shows that 60% of the respondents have switched from other competitor
brand to Royal Endfield ,followed by 40% of the respondents who have purchased two
wheeler for the first time.
Interpretation: Majority of the customers switched from other competitor brands to Royal
Enfield.

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10.classification based on reason of purchase
Data: TABLE 10
REASON OF
PURCHASE RESPONDANT Percentage(%)
Image/status/Passion 19 63
Riding Comfort 11 37
Total 30 100
Analysis- Above Table 10 shows that 63% of the respondents purchase Royal Enfield to
enhance their status/image in the society or they are very passionate about Royal Enfield,
followed by 37% purchase Royal Enfield for Riding comfort.
Interpretation- Majority of the respondent purchase Royal Enfield to enhance their
status/image in the society or they are very passionate about Royal Enfield.

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11.Four wheeler owner wise classification
Data: TABLE: 11
Owners of Four wheelers Respondents Percentage(%)
Customers who have four
wheelers 24 80
Customers who don't have
4 wheelers 6 20
Total 30 100
Analysis- Above Table 11 shows that 80% of the respondents own a four wheeler and only
20% of the respondents don’t own a four wheeler.
Interpretation- Majority of the respondents own a four wheeler. Royal Enfield customers
are high profile customers.

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12.Classification based on first time buyers of ROYAL ENFIELD or
existing customers upgraded to Classic 50cc
Data: TABLE: 12
Customers Respondents Percentage(%)
Existing RE Customers
of other models who
have upgraded to Classic
500cc 10 33
First time Buyers of
Classic 500cc 20 67
Total 30 100
Analysis – Above Table 12 shows that 67% of the respondents are the first time buyers of
Royal Enfield. Remaining 33% of the respondents have upgraded from other Royal Enfield
models to Classic 500 cc.
Interpretation- Majority of the respondents are the first time buyers of Royal Enfield.

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13.SALES SATISFACTION INDEX FOR KAY JEE ENGINEERS
(SECUNDRABAD) CUSTOMERS (for 50 Customers)
Data: TABLE:13
Dealer Name: ……………………
SALES PARAMETERS May-11
Acknowledgement by our team when you entered the showroom. 97%
Attended to you within your convenient time. 97%
Explanation of product by our team. 93%
Clarity provided on documentation related to Registration, finance, etc. 99%
Test ride offer for the model interested. 84%
The influence of test ride process to decide the model 84%
Commitment of Delivery date. 89%
Delay from committed date. 20%
Communication on dealy from our end. 84%
Condition of the bike at the time of delivery 99%
Warranty & Service schedules explanation at the time of delivery. 99%
Received 3rd day call after the bike delivery? 81%

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ANALYSIS- Table 13, shows the sales satisfaction Index of Kay Jee Engineers customers.
Respondents rate Kay Jee Engineers above 80% on all the parameters.
INTERPRETATION- All of the respondents are highly satisfied with the pre and post
sales service provided by Kay Jee Engineers.

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14.SALES SATISFACTION INDEX FOR SHANKAR AUTOMOBILES
ANGUL (ORISSA) CUSTOMERS. (for 50 customers)
Data : TABLE 14
SALES PARAMETERS
May-
11
Acknowledgement by our team when you entered the showroom. 100%
Attended to you within your convenient time. 94%
Explanation of product by our team. 90%
Clarity provided on documentation related to Registration,
finance, etc. 100%
Test ride offer for the model interested. 54%
The influence of test ride process to decide the model 54%
Commitment of Delivery date. 90%
Delay from committed date. 20%
Communication on dealy from our end. 90%
Condition of the bike at the time of delivery 90%
Warranty & Service schedules explanation at the time of delivery. 90%
Received 3rd day call after the bike delivery? 20%
Analysis: Table 14, shows the Sales Satisfaction Index of Shankar Automobiles.
Respondents rate Shankar Automobiles above 80% on majority of the parameters.
Interference: The test ride provided by Shankar Automobile staff to the customers is not
adequate to influence the cutomers to decide the model. The staff should improve on their
important activity of third day call to the customers to know how the bike is performing.

70. Page | 70

71. Page | 71
15.Customer Service Index for Kay Jee Engineers workshop to check the
after service satisfaction (for 50 customers).
Data: TABLE : 15
SERVICE PARAMETERS May-11
Acknowledgement by team 98%
Attended with in your convenient time 98%
Job card openning experience 96%
All reported complaints noted in the job card 99.20%
Estimate given at the time of job card openning 84.80%
Variation in the bill than the estimate 80.04%
Approval taken in case of additional job carry out 37%
Explanation of charges at the time of delivery 92%
Offered the old changed parts from workshop 31.20%
Availability of spare parts in the work shop 95.84%
Condition of the bike at the time of delivery 97.60%
Offered test ride at the time of delivery 90.40%
All reported complaints attended to satisfaction 91.20%
3rd day call received from the date of bike delivery 22.40%
Repeat problems faced after delivery of the bike 50.00%

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ANALYSIS- Above TABLE 15 shows the Customer Satisfaction Index of Kay Jee
Engineers. Respondents rate Kay Jee Engineers on parameters like acknowledgement,
attending within convenient time, effective job card opening,proper estimation given,spare
parts availability, condition of bike at the time of delivery, all complaints attended to
satisdaction etc. above 80% ,but parameters like offering old changed parts, approval taken
for additional job,third day calls and repeated problem faced after delivery is 50% or below.
INTERPRETATION- Kay Jee Engineers should improve on parameters like offering
old changed parts, approval taken for additional job, third day calls and repeated problem
faced by customers like oil leakage etc. after delivery .

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16. Follow up calls made to customers on 2nd
and 3rd
of June 2011 who
have visited the Royal Endfield Brandstore from 1st
April 2011 to 30th
April 2011.
Data : TABLE 16
Post enquiry at showroom Respondants Percentage %
Already booked/ got
delivery 114 44
Want delivery within 15
days to 1 month. 88 34
Have financial constraint 16 6
wrong no. / switched off/
not responding 10 4
Not decided 16 6
Has taken 2nd hand RE
because of delay 4 1
Customer wants Gear on
right side 4 2
others 8 3
Total 260 100
Analysis: Above Table 16 shows that 44% of the respondents after enquiry purchase the
Royal Enfield bike, 34% drop out as they want delivery within 15 days to 1 month, 6% don’t
purchase due to financial constraint or could not decide on the model, 4% do not
respond/switched off , 3% drop out due to non availability of exchange offer/family problem,
2% want the gear box on the right side and 1% bought 2nd
hand Royal Enfiled to avoid the
long waiting period.
Interpretation: Majority of the customers who visit the Royal Enfield showrooms to
enquire about the product definitely book the Royal Enfield bikes.

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17.Reconformation of booking done at Royal Engineers at Uppal.
Data : Table 17
CUSTOMERS RESPODANTS Percentage%
Genuine customer 207 71
Not responding/
unavailable
11 4
Already received th
bike
22 7
Number Out of
service/ order
25 9
No number
mentioned
4 1
cancellation of
booking
6 2
switched off 12 4
doubtful customer 6 2
Total 293 100

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Analysis : Above Table 16 shows that 71% of the customers who book the bike are
genuine customers and reconfirm the model and the booking date,9% of the respondent’s
phone is out of order and 7% already received the bike.4% switched off ,not responding and
2% cancelled booking or doubtful respondents and 1% no number mentioned.
Interpretation: majority of the customers who book the bike are genuine and reconfirm the
model and the booking date.

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Chapter : IV
LEARNINGS

77. Page | 77
LEARNINGS
PERSONAL LEARNING
 To be patient while listening to the others (customers) complaints and suggestions.
 To have the willingness to help the others (customers) whenever required.
 To be punctual, focused and regular to whatever we do.
 To show empathy towards others (customers) .
PROFESSIONAL LEARNING
 To co-ordinate with the different organisational key members.
 To finish work within deadlines.
 To prepare reports with required tables, pie-charts, charts etc.
 To give presentations to the management.
 To analyse and interpret the primary data and give suggestions based on them to the
management.

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Chapter : V
Conclusion

79. Page | 79
SUMMARY OF FINDINGS
 Majority of the respondents fall under the age group of 30-45 and hence Royal Enfield
is mainly preferred by Middle aged people in Hyderabad.
 All the respondents are highly educated indicating that they had an adequate
educational background to support their response.
 Majority of the respondants are Businessmen. indicating the responses were spread
over the youth & experienced people.
 The source of awareness of most of the respondents is through ‘Friends & Relatives.
 Majority of the Royal Enfield customers are high profile customers. So they purchase
the bike with cash.
 Majority of the respondents utilizes their Royal Enfield bike to commute between
office and residence.
 Majority of the respondents use Royal Enfield Classic 500 cc to travel 50KM-100KM
per day because of its riding comfort .
 Majority of the respondents income fall under 25000-50000 followed by respondents
whose monthly income is 50000-1 Lakh.Royal Enfield is owned by respondents who
fall into the upper middle class or high profile segment of Indian society.
 Majority of the customers switched from other competitor brands to Royal Enfield,
because of riding comfort, durability and aesthetics.
 Majority of the respondent purchase Royal Enfield to enhance their status/image in the
society or they are very passionate about Royal Enfield.
 Majority of the respondents own a four wheeler. Royal Enfield customers are high
profile customers.
 Majority of the respondents interviewed are the first time buyers of Royal Enfield.
 All of the respondents are highly satisfied with the pre and post sales service provided
by Kay Jee Engineers.
 The test ride provided by Shankar Automobile staff to the customers is not adequate
to influence the cutomers to decide the model. The staff should improve on their
important activity of third day call to the customers to know how the bike is
performing
 Kay Jee Engineers should improve on parameters like offering old changed parts,
approval taken for additional job,third day calls and repeated problem faced by
customers like oil leakage etc. after delivery

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 Majority of the customers who visit the Royal Enfield showrooms to enquire about the
product definitely book the Royal Enfield bikes.
SUGGESTIONS AND RECOMENDATIONS
1) Promotional Strategies:
Advertise for free test rides to the general public. Also encourage door step rides.
Give more attention to the product by taking up stalls in major exhibitions and trade
expositions.
By holding regular Royal Enfield owners meet, which will in turn entice the press directly to
give regular write ups in the papers and thus creating attention towards the company image
and its product.
2) Advertising:
The advertising strategies to be followed by the company are as follows
i) Make product based advertisements focusing on the quality, durability and reliability of the
vehicle. The company should also show the bond amongst the company and vehicle owners.
ii)The print ads will have to be placed in those magazines that reach the target market. For e.g.
magazines like automobile magazines, magazines targeted at youth etc… the print ads should
be curiosity creating, which would entice the public to take initiative and come to the dealer
and find out more about the company & its products.
iii)Nowadays net advertising have also become popular and gained importance. The net
advertising should be placed in some of the most popular websites like yahoo.com,
indiatimes.com, and rediff.com. Etc… the net advertising should be attractive.
3) To encourage Riders Club Membership in Andhra Pradesh and Orissa so that
customers to have a real experience of their bike.
4) As now the on road presence of Royal Enfield bikes are increasing and its demand is
increasing day-by-day company should establish a new plant as soon as possible ,as many
customers drop out due to long waiting periods (standard, electra and thunderbird 3-4months
and Classic 350cc and 500cc 7-9months waiting period)
5)Brand Ambassador A non-flamboyant well-built brand ambassador from India may be
chosen to represent the brand to connect with the Indian customers.
6)Weak follow up from dealership -It is observed during the study that Royal Enfield should
improve on the follow up calls to retain the prospective customers.
If the following strategies are followed then Royal Enfield can increase the brand awareness
and also retain many customers who are interested but are reluctant to wait.

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Chapter : VI
ANNEXURE

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Chapter :VII
BIBLIOGRAPHY