A STUDY ON CUSTOMER SATISFACTION TOWARDS

ROYAL ENFIELD BIKES KAKINADA CITY

[Link] CONTENT PAGE NO
CHAPTER-1 INTRODUCTION 1-3
CHAPTER-2 DESIGN OF THE STUDY
 NEED FOR THE STUDY 4-9
 SCOPE OF THE STUDY

• OBJECTIVES OFTHE STUDY

 METHODOLOGY
 LIMITATIONS

CHAPTER-3  INDUSTRY PROFILE 10-15

CHAPTER-4  COMPANY PROFILE 16-48

 THEORITICAL FRAMEWORK

CHAPTER-5  DATA ANALYSIS AND INTERPRETATION

49-60

CHAPTER-6
• FINDINGS
61-62

CHAPTER-7 • SUGGESTIONS 63-67

• CONCULSION

• BIBILOGRAPH
 ABSTRACT

The purpose of this study on customers satisfaction will help us to understand the needs and
wants of the customers towards Royal Enfield. The study could provide appropriate and timely
information about the position of satisfaction level of customer towards Royal Enfiled. This
study also investigates the services and factors which influence the customers to purchase the
Royal Enfield Bikes and also identify what customers are expecting from the Royal Enfield. To
know about the customer preferences and factors which influence the customer’s preferences in
buying decision process. Customers satisfaction is influenced strongly by culture, social,
personal and psychological factors. For this purpose, 100 customers were selected and
established the various response based on the questionnaire method. By and large it was found
that most of the customers are choosing Royal Enfield because of its vehicle appearance, pickup,
good models and engine appearance etc.
CHAPTER-1

INTRODUCTION
 1. INTRODUCTION

A motorcycle may be defined as a self-propelled, engine-powered, two-wheeled vehicle. A steam

velocipede built by inventor Sylvester H. Roper may be the earliest known motorcycle

In the present era, customer is the centre point of all the marketing activities. The objectives of the
marketers have shifted from “maximization of profits” to “maximization of customer satisfaction”.
Business firms not only retain their current customers, but also increased their market share by
satisfying customers through high quality after sales service. After –sales service availability is a
critical deciding factor while choosing an automobile.

The two wheeler industry is facing new challenges. Globalization, individualizations, digitalization
and increasing competition are pressing the face of the industry. In addition, increasing safety
requirements and voluntary environmental commitments by the two wheeler industry have also
contributed to the changes ahead. Size is no longer a guarantee of success. Only those companies
that find new ways to create value will prosper in the future.

Driving the most luxurious Bike has been made possible by the stiff competition in the Automobile
industry in India, with overseas players gathering the same momentum as the domestic participants.

Every other day, we have been hearing about some new launches, some low cost Bikes

- all customized in a manner such that the common man is not left behind. In 2015, the Automobile
industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in
India has been hit badly by the ongoing global financial crisis. The Automobile industry in India
happens to be the ninth largest in the world. Following Japan,

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 CHAPTER-2

DESIGN OF THE STUDY

22
 1.1 NEED FOR THE STUDY
Increase market share requires an understanding of customer and their satisfaction towards the
product. Customer satisfaction survey of Royal Enfield leads to examine the efficient factor to
excel in the market. The best way to establish revenue goals and sales quotas for products,
territories or stores/branches is to base them on the true customer satisfaction within the area with a
realistic picture of customer satisfaction, you can focus resources intelligently, maintaining a presence
where you’re strong and investing heavily where opportunity is greatest. These days it is very clear
that market is having drastic changes and all the companies are acting according to it because to
survive in the market and this should be achieved by studying about the customer options and analyzing
their future requirements. This study is definitely going to help to analyze the customer and can
take necessary steps for the improvement of the services by the company

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 1.2 OBJECTIVES OF THE STUDY

 To gather information about Consumer satisfaction toward Royal Enfield Bikes in the geographic
region of KAKINADA
 To know the customer satisfaction towards the after sales service offers by Royal Enfield Company.
 To assess the needs, requirements and expectations of the customer in order to assess their current
satisfaction levels.
 To study perception and buying behaviour of customers towards Royal Enfield in India

 To provide suggestions, in improving the customer satisfaction and the company sales and profitability

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 1.3 SCOPE OF THE STUDY

 The scope of the study is to find out the customer satisfaction with reference to Royal Bikes.
 The study covers the different aspects of customer satisfaction.
 This has been conducted in Shivamogga. The scope of study is to judge the level of satisfaction of
consumer with respect to awareness and perception of Royal Enfield Bikes.
 This study is aiming for converting unsatisfied customers into satisfied customers into
delightful customers

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 1.4 METHODOLOGY

The research design is probability research design and is descriptive research. The important point for the
validation of any research study is based on what type of methodology is adopted.

Project report is based on following data.

Sources Of Data
Data are facts, figures and other relevant materials, past and present, serving as basic study and analysis.

The data serves as the bases for analysis. Without an analysis of actual data on specific inferences can be
drawn on the question under study. Inferences based on imagination or guess work cannot provide correct
answers to research questions. The relevance, adequacy and reliability of data determine of quality of
findings of a study. For the purpose of present study data from two sources have been gathered namely
primary and secondary data.
Primary data

Primary data are original data collected for the purpose of a particular study. In the present study primary
data have been collected by personal interview method with the help of questionnaire.
Secondary data

These are the sources containing data, which have already been collected and compiled for other purpose
by other researchers. The secondary sources consist of readily available materials and already compiled
statistical statements and reports whose data may be used by researcher for his / her studies.

Secondary data for the present research collected the major sources of secondary data are given below.

• Newspaper & Articles

• Business line

• Various websites

• Different marketing journals

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Sampling design

The research was designed to achieve the above mentioned objectives and the following tools were used to
collect the required data.

Sampling Method

A sample is considered during a research when the size of the population is very large and a set is chosen
to represent the whole population, this set is called a sample is a representative of the population under
study.

There are two methods of sampling i.e., probability and non probability sampling. To carry out this project
I have used non probability sampling method.

Sampling Frame

The sample frame represents the groups of respondents that were contacted during the survey it also
represents the profession of the respondents that were connected for data.

Sampling Technique

To carry out this project Convenience technique has been used

Sample Size

The total sample size for the data collection for the research was 100 respondents.

Tools for data collection:

Structured Questionnaires were the tools for data collection. The Questionnaire was neatly designed and
constructed for the purpose in line with the objective of the study.

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 1.5 LIMITATIONS OF THE STUDY

 However we tried our best in collecting the relevant information for our research report, yet
there are always some problems faced by the researcher. The prime difficulties which we faced
in collection of information are discussed below:
 The time period for carrying out the research was short as a result of which many facts have
been left unexplored.
 Lack of time and other resources as it was not possible to conduct survey at large level.
 Only 100 respondents have been chosen which is a small number, to represent whole of the
population
 The study was constrained only to Shivamogga city. A more intensive study would be
necessary to arrive at exact conclusion.
 CHAPTER-3

INDUSTRY PROFILE

INDUSTRY PROFILE

India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent year-
on-year to 3.99 million units. It was the seventh largest manufacturer of commercial
vehicles in 2018.

The Two Wheelers segment dominates the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations for the
near future. Automobile exports grew 14.50 per cent during FY19. It is expected to grow at
a CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives by the
Government of India and the major automobile players in the Indian market are expected to
make India a leader in the two-wheeler and four-wheeler market in the world by 2020.

Market size

Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13- 19
with 26.27 million vehicles getting sold in FY19. Domestic automobile production increased
at 6.96 per cent CAGR between FY13-19 with 30.92 million vehicles manufactured in the
country in FY19.

In FY19, year-on-year growth in domestic sales among all the categories was recorded in
commercial vehicles at 17.55 per cent followed by 10.27 per cent year- on- year growth in
the sales of three-wheelers.

Premium motorbike sales in India crossed one million units in FY18. During January-

September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in India at
7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury vehicles segment
according to J D Power 2018 India sales satisfaction index (luxury). Sales of electric two-
wheelers are estimated to have crossed 55,000 vehicles in 2017-

Investments

In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 22.35 billion during the period April
2000 to June 2019, according to data released by Department for Promotion of Industry and
Internal Trade (DPIIT).

Some of the recent/planned investments and developments in the automobile sector in India are as
follows:

❖ Audi India plans to launch nine all-new models including Sedans and SUVs along with
futuristic e-tron electric vehicle (EV) by the end to 2019.
 ❖ MG Motor India to launch MG ZS EV electric SUV in early 2020 and plans to launch
affordable EV in next 3-4 years.
❖ BYD-Olectra, Tata Motors, Ashok Leyland to supply 5,500 electric buses for different state
departments.
❖ Premium motorbike sales in India recorded seven-fold jump in domestic sales reaching
13,982 units during April-September 2019. The sale of luxury cars stood between 15,000
to 17,000 in first six months of 2019.
❖ In H1 2019, automobile manufacturers invested US$ 501 million in India’s auto-
tech companies start-ups, according to Venture intelligence.

❖ For self-driving and robotic technology start-ups, Toyota plans to invest US$100 million.
❖ In India, 7 Series face lift launched by BMW and the new X7 SUV has been introduced at Rs
98.90 lakh (US$ 0.14 million).
❖ Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to
launch 20-25 new models across various commercial vehicle categories in 2018-19.
❖ Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also
announced to invest US$ 310 million in India.
❖ Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20,000
units per year, highest for any luxury car manufacturing in India.
❖ As of October 2018, Honda Motors Company is planning to set up its third factory in
India for launching hybrid and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31
billion), its largest investment in India so far.
❖ In November 2018, Mahindra Electric Mobility opened its electric technology
manufacturing hub in Bangalore with an investment of Rs 100 crore (US$ 14.25 million)
which will increase its annual manufacturing capacity to 25,000 units.

Government Initiatives

The Government of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route. Some of the recent initiatives taken by the Government of
India are -

❖ Under Union Budget 2019-20, government announced to provide additional income

tax deduction of Rs 1.5 lakh (US$ 2,146) on the interest paid on the loans taken to
purchase EVs.
❖ The government aims to develop India as a global manufacturing centre and
 an R&D hub.
❖ Under NATRiP, the Government of India is planning to set up R&D centres at a total
cost of US$ 388.5 million to enable the industry to be on par with global standards.

❖ The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the
country for introduction of electric vehicles (EVs) in their public transport systems
under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric
Vehicles in India) scheme. The government will also set up incubation centre for
start-ups working in electric vehicles space.
❖ In February 2019, the Government of India approved the FAME-II scheme
with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.

Achievements

Following are the achievements of the government in the past four years:

❖ On 29th July 2019, Inter-ministerial has sanctioned 5,645 electric buses for 65 cities.
❖ NATRIP’s proposal for “Grant-In-Aid for test facility infrastructure for Electric Vehicle
(EV) performance Certification from NATRIP Implementation Society” under FAME
Scheme which had been approved by Project Implementation and Sanctioning
Committee (PISC) on 3rd January 2019.

❖ Number of vehicles supported under FAME scheme increased from 5,197 in June 2015
to 192,451 in March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-wheelers,
185 four-wheelers and 10 light commercial vehicles were supported under FAME
scheme.

❖ Under National Automotive Testing And R&D Infrastructure Project (NATRIP), following
testing and research centres have been established in the country since 2015 o
International Centre for Automotive Technology (ICAT), Manesar o National Institute for
Automotive Inspection, Maintenance & Training (NIAIMT), Silchar o National Automotive
Testing Tracks (NATRAX), Indore o Automotive Research Association of India (ARAI),
Pune o Global Automotive Research Centre (GARC), Chennai
❖ SAMARTH Udyog – Industry 4.0 centers: ‘Demo cum experience’ centres are
being set up in the country for promoting smart and advanced manufacturing
 16
helping SMEs to implement Industry 4.0 (automation and data exchange in manufacturing
technology).
Road head

The automobile industry is supported by various factors such as availability of skilled

Labouré at low cost, robust R&D centers and low-cost steel production. The industry also
provides great opportunities for investment and direct and indirect employment to skilled
and unskilled labour.

Indian automotive industry (including component manufacturing) is expected to reach Rs

16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow
9 per cent in 2018.

References: Media Reports, Press Releases, Department of Industrial Policy and Promotion

(DIPP), Automotive Component Manufacturers Association of India

(ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 2015- 16, Union Budget
2017-18
INTRODUCTION TO ROYAL ENFIELD

Royal Enfield is an Indian motorcycle company which has created a huge impact in the
automobile industry. Royal Enfield has been able to create an image in the market such that
by its name only every consumer creates an image of a luxurious, strong motorcycle. Royal
Enfield have been manufacturing the classic automobiles like Bullet, Electra, and
Thunderbird series from 1909. Royal
Enfield is also distinctive in its logo with a cannon and a tagline of “Made like a gun”. This
logo shows the heritage of the Enfield Company. Vehicles manufactured under Royal
Enfield are prevalent for tough looks, incomparable dependability and enormous power.

Royal Enfield was the name under which the Enfield Cycle Company made motorcycles,
bicycles, lawnmowers and stationary engines. The legacy of weapons manufacture is
reflected in the logo, a cannon, and their motto "Made like a gun, goes like a bullet". Use of
the brand name Royal Enfield was licensed by The Crown in 1890. The original Redditch,
Worcestershire based company was sold to Norton- Villiers- Triumph (NVT) in 1968.

Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967. The
 17
company's last new bicycle was the 'Revelation' small wheeler, which was released in 1965.
Production of motorcycles ceased in 1970 and the company was dissolved in 1971.

In 1956 Enfield of India started assembling Bullet motorcycles under licence from UK
components, and by 1962 were manufacturing complete bikes. Enfield of India bought the
rights to use the Royal Enfield name in 1995. Royal Enfield production, based in
Tiruvottiyur, Chennai, continues and Royal Enfield is now the oldest motorcycle brand in
the world still in production with the Bullet model enjoying the longest motorcycle
production run of all time. In May 2013 a new assembly facility was started at Oragadam,
Chennai.

Royal Enfield is a motorcycle manufacturing company based in Chennai, India. Originally, a

confluence of the British Motorcycle company, Royal Enfield and indigenous Madras
Motors, it is now a subsidiary of Eicher Motors Limited, an Indian automaker. Along with
its flagship motorcycle Royal Enfield Bullet, the enterprise is notable for its Mid-premium
motorcycles with the characteristic thumping engine sounds and high capacity engines.
History
Royal Enfield motorcycles made in England were being sold in India from 1949. In 1955,
the Indian government looked for a suitable motorcycle for its police and army, for
patrolling the country's border. The Bullet was chosen as the most suitable bike for the job.
The Indian government ordered 800 350 cc model Bullets. In 1955, the Redditch company
partnered with Madras Motors in India to form 'Enfield India' to assemble, under licence,
the 350 cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). The first
machines were assembled entirely from components shipped from England. In 1957, the
tooling was sold to Enfield India so that they could manufacture components. By 1962, all
components were made in India. The Indian Enfield uses the 1960 engine (with metric
bearing sizes), in the pre-1956 design frame.

An independent manufacturer since the demise of Royal Enfield in England, Enfield India
still makes an essentially similar bike in 350 cc and 500 cc forms today, along with several
different models for different market segments.

In 1986, a British civil servant, Raja Narayan, returned to India and organised an export arm
for the company to market the Bullet in England. Starting with a Bullet 350 in 1986, he was
soon giving feedback that led to improvements. By 1989, the Enfield Bullet appeared in UK
motorcycle shows.
 18

In 1994, Eicher Group bought into Enfield India. In late 1995, the Enfield India firm
acquired the rights to the name Royal Enfield. Royal Enfield of India now sells motorcycles
in over twenty countries.

Global History
The Beginning

The Enfield Cycle Company made motorcycles, bicycles, lawnmowers and stationary
engines under the name Royal Enfield out of its works based at Redditch, Worcestershire.
The legacy of weapons manufacture is reflected in the logo comprising the cannon, and the
motto "Made like a gun". Use of the brand name Royal Enfield was licensed by the Crown
in 1890.

The Early Years

In 1909 Royal Enfield surprised the motorcycling world by introducing a small Motorcycle
with a 2 ¼ HP V twin Motosacoche engine of Swiss origin. In 1911 the next model was
powered by a 2 ¾ HP engine and boasted of the well known Enfield 2- speed gear. In 1912
came the JAP 6 HP 770 CC V twin with a sidecar combination. It was this motorcycle which
made Enfield a household name. 1914 saw the 3 HP motorcycles this time with Enfield’s
own engine which now had the standardised Enfield paint scheme of black enamelled parts
and green tank with gold trim.

Between the wars

At the time of the outbreak of WW I Royal Enfield supplied consignments of their 6 HP
sidecar Outfit motorcycles with Stretchers to the Crown. This same motorcycle also came
with a Vickers machine Gun sidecar attachment which could also be turned skywards and
used against low flying aircraft. Royal Enfield supplied large numbers of motorcycles to the
British War Department and also won a motorcycle contract for the Imperial Russian
Government.
As the factory developed in the 20’s the range of models also increased and in 1924 Royal
Enfield was offering four versions of the 2 ¼ HP two-stroke motorcycle, two
new JAP engined 350 cc motorcycles and two versions of the 8 HP Vickers engine sidecar
combinations. During the great depression of the 30’s Royal Enfield was also affected and
the demand for motorcycles waxed and waned but the bicycle manufacturing continued at
the same pace and the company trudged on. The Cycar, a fully enclosed motorcycle model
 19
appeared in the early 30’s.

During World War II, like other manufacturers of that time Royal Enfield was also called upon by the
British authorities to develop and manufacture military motorcycles. The models produced for the military
were the WD/C 350 cc SV, WD/CO 350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV and WD/L 570
cc SV.

One of the most well-known Enfields was the Royal Enfield WD/RE, known as the Flying Flea, a
lightweight 125 cc motorcycle designed to be dropped by parachute with airborne troops.

After the war the factory continued manufacturing the models developed during the war and the legendary
J 2 model appeared which went on to be the ancestor of the legendary Bullet. The same motorcycle which
perhaps had the honour of the being the one with the longest production run in the world.
The Indian Connection
Royal Enfield motorcycles were being sold in India ever since 1949. In 1955, the Indian government
started looking for a suitable motorcycle for its police forces and the army for patrolling duties on the
country's border. The Bullet 350 was chosen as the most suitable bike for the job. The Indian government
ordered 800 of these 350 cc motorcycles, an enormous order for that time. Thus In 1955, the Redditch
Company partnered with Madras Motors in India to form what was called 'Enfield India' to assemble these
350 cc Bullet motorcycle under licence in erstwhile madras (Now called Chennai). As per their agreement
Madras Motors owned the majority (over 50%) of shares in the company. In 1957 tooling equipment was
also sold to Enfield India so that they could manufacture components and start full-fledged production. The
Enfield Bullet dominated the Indian highways and with each passing year its popularity kept rising.
Closeout in the UK
Royal Enfield UK continued manufacturing motorcycles and came out with some more innovative and
powerful machines notably the Royal Enfield Meteor, Constellation and finally the Interceptor 700, before
being sold to Norton-Triumph- Villiers (NVT) in

1968. Production ceased in 1970 and the company was dissolved in

1971. Remaining tooling and equipment of the Redditch works were auctioned off. Meanwhile the Bullet
350 continued to be manufactured in India and by the 1980’s the motorcycles were even exported to
Europe out of India. Even after the motorcycle manufacturing closed down the precision engineering
division ran for some more time and even bicycles were produced until quite late. The Eicher Chapter
 20

In 1990, Enfield India entered into a strategic alliance with the Eicher Group, and later merged with it in
1994. It was during this merger that the name Enfield India changed to Royal Enfield. The Eicher Group is
one of India's leading automotive groups with diversified interests in the manufacture of Tractors,
Commercial Vehicles, Automotive Gears, Exports, Garments, Management Consultancy and Motorcycles.
Since then, the Company has made considerable investments in modernizing its manufacturing technology
and systems. In 1996, when the Government decided to impose stringent norms for emission Royal Enfield
was the first motorcycle manufacturer to comply, a tradition which has stuck on thus making emission
norms being one of the most important factors the company focuses on

OUR MISSION

Our mission is to build and maintain a fleet of Royal Enfield's and its variants for our clients who are
looking for hassle-free rentals for their road trips.

OUR CORE VALUE

We are a bunch of adventure travelers ourselves and we understand the joys of bike expeditions. We
believe in providing the best-in-class services for our clients who are looking to explore destinations in
India via Royal Enfields.

OUR PRODUCTS AND SERVICES

We render services that help motorcycle enthusiasts, adventure holiday travelers and destination explorers
to travel and explore locations via the road medium. We offer different variants of Royal Enfield for rent,
to accompany you on your journey.

OUR SPECIALISATION

We provide showroom condition Royal Enfields which are available for customers to rent for short trips,
weekend getaways or longer road expeditions. We also plan customized trips to meet your specific needs.
 21
Our services are for those who want to discover and explore. Our customers are people who look to
challenge themselves- doing things they might have not done in the past, who seek travel experiences that
are out of the ordinary, who want to experience and explore places and not just visit it. The sporty,
adventurous explorer who constantly seeks challenges is our kind of traveler- one who connects with us
and our brand.

The practice of Corporate Governance in Royal Enfield group takes place at three interlinked levels:

1. Strategic supervision By the board of Directors

2. Strategic Management By the Corporate Management
Committee
3. Executive Management By the Divisional / Strategic
Business Unit

This three-tier governance structure ensures that:

1. Strategic supervision (on behalf of the shareholders), being free from involvement in the task of
strategic management of the Company, can be conducted by the Board with objectively, thereby
sharpening accountability of management.
2. Strategic management of the company, uncluttered by the day to day tasks of executive
management, remains focused and energized;
3. Executive management of a Division or a Business free from collective strategic responsibilities for
Royal Enfield as a whole focuses on enhancing the quality, efficiency and effectiveness of the
business.
Sales service for the benefit of customers:

Royal Enfield country wide auto financial service Limited. It takes I order to supplement its after sales
network and after new value for added services for it. Royal Enfield service master will provided world
class quality service at its state of the art work shops, Delighted and developed on per Royal Enfield
Guidelines friend professionals to take personalized care of all bikes maintenance need less than one roof.
The workshop will also have all the latest tools and equipment for diagnosing and testing vehicle
parameters. The company will also facilitate sales and purchase of used bikes.
 22
Marketing Mix Royal Enfield

Royal Enfield is an Indian company of British origins. It is a public company that deals in two- wheelers
and is associated with the automotive industry. Vehicles related to this brand are popular for rugged looks,
matchless stability and sheer power. The brand has been a favourite amongst Police and Army personnel.
Royal Enfield was founded in the year 1909 and merged with Madras Motors in the year 1955. Currently,
it is a subsidiary of its Indian parent company Eicher Motors Limited. Some of its competitors are as
follows-

• Ducati Superbike

• Harley Davidson

• Suzuki

• TVS

• Hero Motor Corp

• Bajaj Auto Limited

Product in Marketing Mix of Royal Enfield

Royal Enfield is associated with manufacturing and marketing of motorcycles as it deals in the automobile
sector. It started its operations as a manufacturer of motorcycles for Indian Army. It is also involved in
producing lawnmowers, stationary engines, bicycles and rifles. Some of its well- known models are as
follows- Standard Street

• Bullet Electra 5S

• Bullet 350
• Bullet Machismo 500 Retro Street
• Classic 500

• Classic Battle Green

• Classic Chrome

• Classic Squadron Blue

• Classic 350

• Classic Desert Storm Cruiser

• Thunderbird 500
 23
• Thunderbird 300 Cafe Racer

• Continental GT

• Royal Enfield Himalayan

Place in the marketing mix of Royal Enfield

Royal Enfield is an Indian company with its headquarters base at Chennai in Tamil Nadu. It has spread its
product presence to India as well as several international markets in more than fifty countries like Spain,
Switzerland, Singapore, Netherlands, Russia, Malaysia, Korea, Canada, Brazil, France, Germany, Italy,
United Kingdom, Japan, Argentina, Australia and the United States. At its onset company imported kits for
350cc bikes from the United Kingdom and assembled them in its plant at Chennai. A new manufacturing
plant was opened at Oragadam in Chennai by the year 2013 and its factory located at Tiruvottiyur became
a secondary production plant that continued with its manufacturing of several models and engines. In the
year 2015 company established a dealership and its headquarters for the North American division at

Milwaukee in Wisconsin. It started its retail operations in Indonesia in the year 2015, August. Royal
Enfield has a strong distribution network that includes services of dealers and stockists so that it reaches
consumer markets easily. Its channel in India includes 394 dealership outlets spread over every Indian state
and three Union territories.

Price in the Marketing Mix Of Royal Enfield :

Royal Enfield has the distinction of being an iconic company as it is one of the oldest in the field of two-
wheelers. It belongs to the luxury segment and has become a status symbol to motorcycle lovers. Royal
Enfield has targeted bike adventurers and youth’s belonging to a middle-aged group as its target customers
that believe in quality over pricing at any given time. It has adopted a premium pricing policy for its high-
quality products. The company offers a powerful and stylish product with an established and high-profile
brand name and hence its target customers do not hesitate in making a purchase irrespective of high prices.
 24

CHAPTER 4

COMPANY PROFILE

&

THEORITICAL FRAMEWORK
 COMPANY PROFILE
Overview:

Royal Enfield is one of the oldest motorcycle brands in continuous production, renowned for its classic styling,
rugged build, and distinctive thumping engine sound. With roots tracing back to the UK in 1901, the company
became an iconic brand in India after the 1950s when the Indian government ordered motorcycles for the army
and police forces. The brand was later acquired by Eicher Motors Limited and has grown into a global symbol
of retro-modern motorcycling.

Mission:

To lead the global mid-size motorcycle segment by building engaging and accessible riding experiences that
reflect timeless design and craftsmanship.

Vision:

To be the most loved motorcycle brand in the world by inspiring and enabling the pursuit of exploration and
adventure.

Key Products:

Royal Enfield primarily manufactures mid-sized motorcycles (250cc–750cc). Popular models include:

 Classic 350
 Bullet 350
 Meteor 350
 Hunter 350
 Himalayan 411
 Scram 411
 Interceptor 650
 Continental GT 650
 Shotgun 650
Manufacturing Facilities:

Royal Enfield has world-class manufacturing plants located in:

 Chennai – Oragadam
 Chennai – Vallam Vadagal

Global Presence:

Royal Enfield has expanded its presence in over 60 countries, including key markets in Europe, the USA,
Latin America, and Southeast Asia. It has also established technology centers in the UK and India to drive
innovation and product development.

Royal Enfield in Kakinada:

Royal Enfield operates its dealership and service operations in Kakinada, Andhra Pradesh, providing sales,
servicing, and spare parts. The dealership caters to a wide range of customer segments in the region, offering
test rides, financing options, and customization services.

Achievements:

 One of the fastest-growing motorcycle brands in the mid-size segment.

 Introduced innovative models that blend retro design with modern technology.
 Strong brand loyalty and rider community globally (e.g., Rider Mania, Himalayan Odyssey).
 THEORITICAL FRAMEWORK
Introduction

Customer satisfaction is a critical component of a company’s success, particularly in the highly competitive
automotive industry. It reflects the degree to which a product or service meets or exceeds customer
expectations. In the context of Royal Enfield bikes, customer satisfaction involves evaluating various aspects
such as product performance, durability, design, price, service quality, and brand image. This theoretical
framework outlines the key theories, concepts, and models that underpin this study on customer satisfaction
towards Royal Enfield bikes in Kakinada.

1. Concept of Customer Satisfaction

Customer satisfaction is defined as the result of a customer’s perception of the value received in a transaction
or relationship – where value equals perceived service quality relative to price and customer acquisition costs.
It is the difference between customer expectations and the actual performance of the product or service.

Oliver (1980) defines customer satisfaction as “the summary psychological state resulting when the emotion
surrounding disconfirmed expectations is coupled with the consumer’s prior feelings about the consumption
experience.” Satisfaction occurs when the perceived performance matches or exceeds expectations, and
dissatisfaction occurs when it falls short.

2. Expectancy-Disconfirmation Theory

One of the most widely accepted models in the field of customer satisfaction is the Expectancy-
Disconfirmation Theory (EDT) developed by Richard L. Oliver. This theory posits that customer satisfaction
is determined by the gap between expected and actual performance.

 Positive disconfirmation occurs when the performance exceeds expectations, leading to satisfaction.
 Negative disconfirmation occurs when performance falls short of expectations, resulting in
dissatisfaction.
  Confirmation occurs when performance matches expectations, often leading to neutral or moderate
satisfaction.

In the case of Royal Enfield, if the bike’s performance, styling, and service exceed what a customer expects,
satisfaction is likely to be high. If customers face issues like high maintenance costs or poor service quality, it
results in dissatisfaction due to negative disconfirmation.

3. SERVQUAL Model

Developed by Parasuraman, Zeithaml, and Berry, the SERVQUAL Model is another important tool to
evaluate customer satisfaction, especially in service industries. It identifies five dimensions that influence
customer perceptions:

1. Tangibles – Physical facilities, equipment, and appearance of personnel.

2. Reliability – Ability to perform the promised service dependably and accurately.
3. Responsiveness – Willingness to help customers and provide prompt service.
4. Assurance – Knowledge and courtesy of employees and their ability to inspire trust.
5. Empathy – Caring and individualized attention provided to customers.

In the context of Royal Enfield dealerships in Kakinada, these dimensions are relevant in assessing the
effectiveness of customer service and support, which are key components of overall satisfaction.

4. Kano’s Model of Customer Satisfaction

Kano’s Model categorizes customer preferences into five categories:

 Basic Needs (Must-Be): These are fundamental requirements. If not fulfilled, customers will be
dissatisfied.
 Performance Needs (One-Dimensional): These directly correlate with satisfaction – the better the
performance, the higher the satisfaction.
 Excitement Needs (Delighters): These are unexpected features that delight customers.
 Indifferent Needs: Features that neither contribute to nor detract from satisfaction.
  Reverse Needs: Features that can cause dissatisfaction if present, depending on customer preference.

For Royal Enfield, performance, mileage, and durability are basic and performance needs, whereas
customization options and retro aesthetics may act as delighters for some customers.

5. Customer Perceived Value (CPV)

The Customer Perceived Value model suggests that satisfaction is influenced by the perceived value received
for the cost incurred. CPV is defined as the difference between what a customer gets (benefits) and what they
give up (costs).

Mathematically:
CPV = Total Customer Benefits – Total Customer Costs

In terms of Royal Enfield, if the customer feels that the price paid for the bike is justified by the brand value,
design, performance, and ownership experience, they are likely to report higher satisfaction.

6. Brand Loyalty and Emotional Attachment

Customer satisfaction is closely linked with brand loyalty. Satisfied customers are more likely to remain loyal,
recommend the brand to others, and repurchase. Aaker’s Brand Equity Model outlines that brand loyalty
contributes significantly to the perceived quality and emotional value of a product.

Royal Enfield has cultivated a strong emotional connect with customers through its brand image, riding
communities, heritage, and the “thump” of its engines. This emotional attachment enhances satisfaction and
creates a sense of belonging, especially among biking enthusiasts.

7. Theory of Planned Behavior (TPB)

The Theory of Planned Behavior, developed by Ajzen, helps explain how customer attitudes, subjective
norms, and perceived behavioral control influence behavioral intentions. In consumer behavior, a positive
attitude toward a brand (Royal Enfield), along with social influences (peer recommendations), and the ability
to purchase and maintain the bike, contribute to satisfaction and purchase behavior.
8. Post-Purchase Behavior and Cognitive Dissonance

Cognitive dissonance theory explains the mental discomfort customers may feel after making a purchase
decision. If a Royal Enfield bike owner experiences mechanical issues or poor service, despite having high
expectations, they may feel regret or dissatisfaction.

To reduce dissonance, Royal Enfield must manage post-purchase communication, provide after-sales support,
and reinforce the customer's choice by highlighting brand value and community support.

9. Customer Feedback Loop

Customer satisfaction is not a static process; it is dynamic and must be continuously monitored. The
Customer Feedback Loop involves:

1. Collecting feedback (surveys, reviews, service reports)

2. Analyzing insights
3. Implementing improvements
4. Communicating actions taken

For Royal Enfield in Kakinada, integrating customer feedback into product and service improvement can
significantly enhance satisfaction levels and retain customers.

10. Relevance to the Present Study

In the context of this research, these theories and models provide a foundational structure to analyze how
different variables impact customer satisfaction. The following key factors are derived from the theoretical
models:

 Product performance (EDT, Kano’s Model)

 Design and aesthetics (CPV, Emotional Attachment)
 Service quality (SERVQUAL)
 CHAPTER 5

DATA ANALYSIS & INTERPRETATION

 DATA ANALYSIS AND INTERPRETATION

Table No: 5.1

Table showing on the basis of Gender factor

Gender No of Respondents Percentage

Male 60 60
Female 40 40
Total 100% 100%
Source: Field Survey

Chart No: 5.1

35

30

Male Female

Interpretation

The above Table and chart shows that, 60% of respondents are Male and remaining 40% of
respondents are Female.
Table shows on the basis of Respondent’s Marital Status

Marital Status No of Respondents Percentage

Married 20 20
Un married 80 80
Total 100% 100%
Source: Field Survey

Chart No: 5.2

Married Un
mmam
married

Interpretation

The above Table and chart shows that, 20% of respondents are married and 80% of respondents are married
Table shows on the basis of Respondent’s Age Group

Age group No of Respondents Percentage

Below 20 years 63 63
Between 20 to 30 years 24 24
Above 30 years 13 13
Total 100% 100%
Source: Field Survey

Chart No: 5.3

Below 20 Between 20 to Above 30

30

Interpretation

The above Table and chart shows that, 63% of the Respondents are in the age group of Below 20, 24%
Respondents are in the age group of 20 to 30, 13% of the respondent is in the age group of above 30.
Table shows on the basis of Respondent’s Educational Qualification

Educational Qualifications No of Respondents Percentage

S.S.L.C 6 6
PUC 15 15
Graduate 69 69
Post Graduate 10 10
Other specify 0 0
Total 100 100
Sources: Field Survey

Chart No: 5.4

S.S.L. PU Graduate Post Other

Graduat specif

Interpretation

The above Table and chart shows that, 6% respondents belongs to SSLC, 15% respondents belongs PUC,
69% respondents Educational qualification Belongs to Graduate, 9% respondents Belongs to Post graduate.
Occupation of respondents is presented

Occupation No of Respondents Percentage

Professional 6 6
Business 10 10
Government Employee 12 12
Student 70 70
Others specify 4 4
Total 100% 100%
Source: Field Survey

Chart No: 5.5

12

Professional Governme Studen Other

nt s

Interpretation
The above Table and chart shows that, 6% respondents have the occupation like professional, 10%
respondent having the occupation like business, 12% respondent having the occupation likes Government
Employee, 70% respondents having occupation like students and 4%
Table shows on the basis of Respondent’s Monthly Income

Monthly Income in(INR) No of Respondents Percentage

Less than 10000 60 60
Rs.10000- Rs 15000 8 8
Rs 15000- Rs 20000 12 12
Above Rs. 20000 20 20
Total 100% 100%
Source: Field Survey

Chart No: 5.6

20
Less than
12
Rs.10000- Rs
60
15000

Rs 15000- Rs

Interpretation

The above Table and chart shows that, 60% of the respondents belongs to income group less Rs. 10,000
per month, 8% of the respondents Belongs to Rs 10,000 – 15,000 per month, 12% of the respondents
belongs to Rs. 15,000 20,000 per month. & 20% of the respondents Belongs to 20,000 & above.
The table shows on the basis of respondents have own two wheeler bike

Particular No of Respondents Percentage

Yes 75 75
No 25 25
Total 100% 100%
Source: Field Survey

Chart No: 5.7

Interpretation

The above Table and chart shows that, 75% respondents are own two wheeler bike and 25% respondents
not own two wheeler bike.
The table shows on the basis of respondents which company two wheeler have

Particular No of Respondents Percentage

Royal Enfield 26 26
Hero 12 12
Honda 10 10
Bajaj 12 12
Yamaha 16 16
Others 24 24
Total 100% 100%
Source: Field Survey

Chart No: 5.8

Interpretation

The above Table and chart shows that, 26% respondents have Royal Enfield, 12% respondents have Hero,
10% respondent have Honda, 12% respondents have Bajaj, 16% respondents have Yamaha and 24
respondents have others.
Table shows on the basis of Respondent’s aware of Royal Enfield bike

Marital Status No of Respondents Percentage

Yes 78 78
No 22 22
Total 100% 100%
Source: Field Survey

Chart No: 5.9

Interpretation

The above Table and chart shows that, 78% respondents aware of Royal Enfield Bike and 22% respondents
are not aware of Royal Enfield Bikes.

32
Respondents having Royal Enfield Bike Model

Particular No of Respondents Percentage

Thunderbird 24 24
Classic 18 18
Bullet 36 36
Other model 12 12
Continental G T 10 10
Total 100% 100%
Source: Field Survey

Chart No: 5.10

Continental G

Other

Bulle

Interpretation

Out of 100 respondents, 24% of respondents have thunderbird model, 18% of respondents have Classic,
36% of respondents belongs to Bullet, 12% of respondents belongs to other model and 10 % of
respondents belongs to Continental GT.
Table shows How did respondents come to know about Royal Enfield

Particular No of Respondents Percentage

Advertisement 18 18
Friends & relatives 48 48
Observation 6 6
Brand image 15 15
Publicity 13 13
Total 100% 100%
Source: Field Survey

Chart No: 5.11

13 18
15
Friends&
relatives
48 Observation

Interpretation

The above table and chart states that, 18% of the respondents come to know Royal

Enfield through Advertisement, 48% of the respondents belongs to Friends & Relatives, 6% of the
respondents belongs to Observation, 15% of the respondents belongs to Brand image and 13% respondents
belongs to Publicity.
Table shows media of advertisement that have you been introduced Respondents to Royal

Particular No of Respondents Percentage

Television 57 57
Magazines 15 15
News paper 9 9
Posters / Stickers 5 5
Others 14 14
Total 100% 100%

Chart No: 5.12

14
Television
Magazines
News paper
57
Posters /
15

Interpretation

The above table and chart states that, 57% of the respondents come to know about Royal Enfield through
Television Media, 15% of the respondents belongs to Magazine, 9% of the respondents belongs to
Newspaper, 5% of the respondents belongs to Posters / Stickers and 14% of the respondents belongs to
Others.
Table shows from past how many years did respondents know about Royal Enfield

Company

Particular No of Respondents Percentage

One year 15 15
Two year 27 27
Three year 33 33
Don’t know Exactly 25 25
Total 100% 100%
Source: Field Survey

Chart No: 5.13

35 33

One Two Three Don’t know

Interpretation

The above table and chart states that, 15% of respondents know about Royal Enfield Company from One
year, 27% of respondents belongs to Two years 33% of respondents belongs to Three years and 25% of
respondents belongs to Don’t know exactly.
Table shows plan to buy Royal Enfield Bike in future

Marital Status No of Respondents Percentage

Yes 66 66
No 34 34
Total 100% 100%
Source: Field Survey

Chart No: 5.14

30

20

10
Ye No

Interpretation

The above table and chart states that, 66% of respondents are having planned to buy the Royal Enfield bike
in future and 34% of respondents are not having planned to buy the Royal Enfield bike in future.
Table shows Respondent’s preferred Model

Particular No of Respondents Percentage

Thunderbird 24 24
Classic 18 18
Other model 36 36
Continental GT 22 22
Total 100% 100%
Source: Field Survey

Chart No: 5.15

36

Thunderbir Classi Other Continental

Interpretation

The above table and chart states that 24% of respondents are prefer Thunderbird, 18% of respondents are
prefers classic bike, 36% of respondents are prefers other model and 22% of respondent are prefer
Continental GT Bike.
Respondent’ think about Royal Enfield bike Technology

Particular No of Respondents Percentage

Magnificent 20 20
Superb 44 44
Delighting 25 25
Ordinary 11 11
Total 100% 100%
Source: Field Survey

Chart No: 5.16

11
20

Magnificen

25 Superb

44

Interpretation

The above table and chart states that, 20% of the respondents belongs to Magnificent, 44% of the
respondents think that Royal Enfield bike technology is Superb, 25% of the respondents belongs to
Delighting and 11% of the respondents belongs to Ordinary.
Respondent’s opinions about the price of Royal Enfield Bike

Particular No of Respondents Percentage

Worth 28 28
Reasonable 36 36
Low 0 0
High 36 36
Total 100% 100%
Source: Field Survey

Chart No: 5.17

20

15

10

Worth Reasonabl Lo Hig

Interpretation

The above table and chart states that 28% of respondents belongs to Worth, 36% of respondents opinions
that the Price of Royal Enfield bike is reasonable and 36% of respondents belongs to High.
Respondent’s think about Royal Enfield pickup

Particular No of Respondents Percentage

Excellent 12 12
Good 46 46
Satisfactory 22 22
Worst 20 20
Total 100% 100%

Chart No: 5.18

3 2

5 1

0
Excellent Good Satisfactory

Interpretation

The above table and chart states that, 12% of respondents opinion that the Royal Enfield

Bike pickup is Excellent, 46% of respondents’ opinions that the Royal Enfield bike pickup is Good, 22
% of respondents belongs to satisfactory and 20% of respondents belongs to Worst.
Respondent’s think about Royal Enfield Bikes Road grip

Particular No of Respondents Percentage

Excellent 20 20
Good 39 39
Adequate 21 21
Insolvent 20 20
Total 100% 100%
Source: Field Survey

Chart No: 5.19

Interpretation

The above table and chart states that, 20% of respondents belongs to Excellent, 39% of respondents
opinions that the Royal Enfield Bike road grip is Good, 21% of respondents belongs to adequate and 20%
of respondents belongs to Insolvent.
CHAPTER 6
FINDINGS
 FINDINGS
❖ Majority of the respondents are Male.
❖ Majority of the respondents are unmarried
❖ Majority of the respondents are in the age group of Below 20.

❖ Majority of the respondents Educational qualification Belongs to Graduation. Majority of the

respondents are students.
❖ Majority of the respondents monthly income is belong to less than Rs. 10,000 per
month
❖ Majority of the respondents are own two wheeler bike.
❖ Majority of the respondents are having Royal Enfield Bike.

❖ Majority of the respondents are aware of Royal Enfield Bike.

❖ Majority of the respondents are Having Royal Enfield Bullet.

❖ Majority of the respondents are come to know Royal Enfield through Friends &
Relatives.
❖ Majority of the respondents come to know about Royal Enfield through Television
Media.
❖ Majority of the respondents know about Royal Enfield Company from Three years.
❖ Majority of the respondents are having planned to buy the Royal Enfield bike in future.
❖ Majority of the respondents are prefer Continental GT Bike.
❖ Majority of the respondents think that Royal Enfield bike technology is Superb
❖ Majority of the respondents opinions that the Price of Royal Enfield bike is High.
❖ Majority of the respondents opinions that the Royal Enfield bike pickup is Good.
❖ Majority of the respondents opinions that the Royal Enfield Bike road grip is Good.
❖ Majority of the respondents ready to recommend Royal Enfield bikes to others.
 CHAPTER 7
SUGGESTION

CONCLUSION

BIBILOGRAPH
 SUGGESTIONS

❖ The price of Royal Enfield is very high when compared to competition. The company has will
established can provide some gifts and discounts to the customers.
❖ The dealer is also required to provide discount on cash purchase.

❖ The company also tries to give certain offers to the dealer so as improve his efficiency in the
selling the Royal Enfield products which other company also give to their dealer.
❖ As television as the common media for advertising frequent advertisement must be shown in local
city cable.
❖ As the dealer has arranged the neon bulbs for advertising in the showroom in the same way.
❖ The company should provide the warranty for some parts like clutch plates mark.
❖ The dealer is promotional strategy should provide test rides in colleges and after some special
gifts like diaries pens, bags etc.
❖ The dealer is required to maintain all colors of Royal Enfield Sport at all time & it is
available to customer at right him.
❖ Give more advertisement in KAKINADA City.

❖ To come with different color of the bikes with new modes.

❖ Royal Enfield Company should take of resale value of bike. Resale value is high compare to other
bikes.
❖ All spares, accessories should be available at the service stations on proper time.
❖ To improve the design for wheels for a better road with and safety driving.
 CONCLUSION

A variety of two wheelers have entered into the two wheeler market. This has
increased the competition Because of competition Sales of two wheelers might
have decreased. Therefore, the Enfield Company has to keep in mind the latest
competition prevailing in the market while fixing the price of its two wheelers
particularly Royal Enfield Bike. Because of Royal Enfield Company believes in
excellence in the technology it has achieved more than one million customer
satisfaction within part of the years from its launch No other India two wheeler
company has achieved its progress within short period. As per the market research
carried out by Enfield Company it is found them it is the number one company in
two wheeler segment. By considering all the findings of is hope that the company
& dealer will sing a sweet song of profit’s in future years.
 BIBILOGRAPHY:
📚 Books

1. Kotler, Philip & Keller, Kevin Lane

Marketing Management (15th Edition)
Publisher: Pearson Education
➤ Useful for theories on customer satisfaction, brand management, and
consumer behavior.
2. Zeithaml, Valarie A., Bitner, Mary Jo & Gremler, Dwayne D.
Services Marketing: Integrating Customer Focus Across the Firm
➤ Explains the SERVQUAL model and service quality dimensions in detail.
3. Schiffman, Leon G., & Kanuk, Leslie Lazar
Consumer Behavior
➤ Offers insight into customer buying behavior, decision-making, and
satisfaction.
4. Oliver, Richard L.
Satisfaction: A Behavioral Perspective on the Consumer
➤ The foundational book on Expectancy-Disconfirmation Theory and
customer satisfaction models.
5. Aaker, David A.
Managing Brand Equity
➤ Useful for understanding brand loyalty, brand equity, and customer
perception.

🌐 Websites

1. Royal Enfield Official Website

[Link]
➤ Company profile, product range, dealership information, and news updates.
2. Statista
[Link]
➤ For industry trends, customer satisfaction statistics, and market share data
in the automotive sector.
3. Society of Indian Automobile Manufacturers (SIAM)
[Link]
➤ Reports and publications related to the Indian automobile industry.
4. IBEF (India Brand Equity Foundation)
[Link]
➤ Overview of India's automobile sector and consumer behavior insights.
5. AutoCar India
[Link]
➤ News, reviews, and consumer feedback on Royal Enfield and competitors.
6. Team-BHP
[Link]
➤ Forum with customer reviews, service experiences, and technical feedback
on Royal Enfield bikes.
📄 Journals

1. Journal of Consumer Research

➤ Articles on customer satisfaction, emotional branding, and consumer
behavior.
Website: [Link]
2. International Journal of Marketing Studies (IJMS)
➤ Peer-reviewed studies on marketing and customer satisfaction.
Website: [Link]
3. International Journal of Customer Relationship Marketing and
Management (IJCRMM)
➤ Research on customer loyalty, satisfaction, and service quality.
4. Journal of Retailing and Consumer Services
➤ High-quality studies on customer satisfaction and retail service delivery.
5. Indian Journal of Marketing
➤ Studies specific to Indian consumer behavior and automotive sector.
6. Harvard Business Review (HBR)
➤ Case studies and expert analysis on brand strategy and customer
satisfaction.
Website: [Link]