Index: S.no. No

INDEX

S.NO. TITLE OF CHAPTERS

PAGE NO.

1

Introduction

2

2

OBJECTIVE OF THE STUDY

3

3

METHODOLOGY

4

4

INTRODUCTION TO ROYAL ENFIELD

7

5

MARKET SHARE AND GROWTH TRAJECTORY

8-9

6

SWOT ANALYSIS

10-12

MARKETING STRATEGY ADOPTED BY ROYAL

7

ENFIELD

13-15

8

CONCLUSION

16-18

9

BIBLIOGRAPHY

19-21

1

CHAPTER-1 INTRODUCTION Marketing is defined by the American Marketing Association as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." The term developed from the original meaning which referred literally to going to market with goods for sale. From a sales process engineering perspective, marketing is "a set of processes that are interconnected and interdependent with other functions" of a business aimed at achieving customer interest and satisfaction. Philip Kotler defines marketing as Satisfying needs and wants through an exchange process. Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science, allowing numerous universities to offer Master-of-Science (MSc) programs. The process of marketing is that of bringing a product to market, which includes these steps: broad market research; market targeting and market segmentation; determining distribution, pricing and promotion strategies; developing a communications strategy; budgeting; and visioning long-term market development goals. Many parts of the marketing process (e.g. product design, art director, brand management, advertising, copywriting etc.) involve use of the creative arts. he 'marketing concept' proposes that in order to satisfy the organizational objectives, an organization should anticipate the needs and wants of potential consumers and satisfy them more effectively than its competitors. This concept originated from Adam Smith's book The Wealth of Nations,

but would not become widely used until nearly 200 years later. Marketing and

Marketing Concepts are directly related.

2

Given the centrality of customer needs and wants in marketing, a rich understanding of these concepts is essential Needs: Something necessary for people to live a healthy, stable and safe life. When needs remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be objective and physical, such as the need for food, water, and shelter; or subjective and psychological, such as the need to belong to a family or social group and the need for self-esteem. Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic survival and are often shaped by culture or peer-groups. Demands: When needs and wants are backed by the ability to pay, they have the potential to become economic demands. Marketing research, conducted for the purpose of new product development or product improvement, is often concerned with identifying the consumer's unmet needs. Customer needs are central to market segmentation which is concerned with dividing markets into distinct groups of buyers on the basis of "distinct needs, characteristics, or behaviors who might require separate products or marketing mixes." Needs-based segmentation (also known as benefit segmentation) "places the customers' desires at the forefront of how a company designs and markets products or services." Although needs-based segmentation is difficult to do in practice, it has been proved to be one of the most effective ways to segment a market. In addition, a great deal of advertising and promotion is designed to show how a given product's benefits meet the customer's needs, wants or expectations in a unique way. The marketing orientation is perhaps the most common orientation used in contemporary marketing. It is a customer-centric approach that involves a firm basing its marketing program around products that suit new consumer tastes. Firms adopting a marketing orientation typically engage in extensive market research to gauge consumer desires, use R&D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure consumers are aware of the product's existence and the benefits it can deliver. Scales designed to measure a firm's overall market orientation have been developed and found to be relatively robust in a variety of contexts.

3

The marketing orientation often has three prime facets, which are: Customer orientation: A firm in the market economy can survive by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Organizational orientation: In this sense, a firm's marketing department is often seen as of prime importance within the functional level of an organization. Information from an organization's marketing department would be used to guide the actions of other departments within the firm. As an example, a marketing department could ascertain (via marketing research) that consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing department would inform the R&D department to create a prototype of a product/service based on consumers' new desires. The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization. Mutually beneficial exchange: In a transaction in the market economy, a firm gains revenue, which thus leads to more profits/market share/sales. A consumer on the other hand gains the satisfaction of a need/want, utility, reliability and value for money from the purchase of a product or service. As no-one has to buy goods from any one supplier in the market economy, firms must entice consumers to buy goods with contemporary marketing ideals.

4

MARKETING STRATEGY Is a long-term, forward-looking approach to planning with the fundamental goal of achieving a sustainable competitive advantage. Strategic planning involves an analysis of the company's strategic initial situation prior to the formulation, evaluation and selection of market-oriented competitive position that contributes to the company's goals and marketing objectives. Strategic marketing, as a distinct field of study emerged in the 1970s, and built on strategic management that preceded it. Marketing strategy highlights the role of marketing as a link between the organization and its customers. Scholars continue to debate the precise meaning of marketing strategy. Consequently, the literature offers many different definitions. On close examination, however, these definitions appear to centre around the notion that strategy refers to a broad statement of what is to be achieved. Marketing Strategy is "The marketing strategy lays out target markets and the value proposition that will be offered based on an analysis of the best market opportunities." (Philip Kotler & Kevin Keller, Marketing Management, Pearson, 14th Edition) “An over-riding directional concept that sets out the planned path.” (David Aaker and Michael K. Mills, Strategic Market Management, 2001, p. 11) "Essentially a formula for how a business is going to compete, what its goals should be and what policies will be needed to carry out these goals." (Michael Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors , NY, Free Press, 1980) "The pattern of major objectives, purposes and goals and essential policies and plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in. (S. Jain, Marketing Planning and Strategy, 1993) "An explicit guide to future behaviour.” (Henry Mintzberg, “ Crafting Strategy,” Harvard Business Review, July–August, 1987 pp. 66–74)

5

Strategy is "reserved for actions aimed directly at altering the strengths of the enterprise relative to that of its competitors... Perfect strategies are not called for. What counts is... performance relative to competitors.” (Kenichi Ohmae, The Mind of the Strategist, 1982, p. 37) Strategy formulation is built on "the match between organisational resources and skills and environmental opportunities and risks it faces and the purposes it wishes to accomplish." (Dan Schendel and Charles W. Hofer, Strategy Formulation: Analytical Concepts, South-Western, 1978, p. 11)

6

CHAPTER-2 COMPANY PROFILE

Royal Enfield was a brand name under which The Enfield Cycle Company Limited of Redditch, Worcestershire sold motorcycles, bicycles, lawnmowers and stationary engines which they had manufactured. Enfield Cycle Company also used the brand name Enfield without Royal. The first Royal Enfield motorcycle was built in 1901. The Enfield Cycle Company is responsible for the design and original production of the Royal Enfield Bullet, the longest-lived motorcycle design in history. Enfield's remaining motorcycle business became part of Norton Villiers in 1967 and that business closed in 1978

THE BEGINNING The Enfield Cycle Company made motorcycles, bicycles, lawnmowers and stationary engines under the name Royal Enfield out of its works based at Red ditch, 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 standardized Enfield paint scheme of black enameled parts and green tank with gold trim.

7

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 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.. One of the most wellknown 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 honor of the being the one with the longest production run in the world.

8

THE INDIA 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 license 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.

History In 1893, the Enfield Manufacturing Company Ltd was registered to manufacture bicycles, adopting the branding Royal Enfield. By 1899, Royal Enfield were producing a quadricycle – a bicycle modified by adding a wraparound four-wheeled frame, retaining a rear rider-saddle with handlebars – having a frontmounted passenger seat, driven by a rear-mounted De Dion engine. After experimenting with a heavy bicycle frame fitted with a Minerva engine clamped to the front downtube, Enfield built their first motorcycle in 1901 with a 239 cc engine. In 1907, Enfield merged with the Alldays& Onions Pneumatic Engineering Co. of Birmingham, and began manufacturing the Enfield-Allday automobile. By 1910, Royal Enfield was using 344 cc Swiss Motosacoche V-Twin engines, or largedisplacement JAP and Vickers-Wolseley engines. In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a 770 cc V-twin JAP engine which was raced successfully in the Isle of Man TT and at Brooklands.

9

First World War (1911–1921) In 1914 Enfield supplied large numbers of motorcycles to the British War Department and also won a motorcycle contract for the Imperial Russian Government. Enfield used its own 225 cc two-stroke single and 425 cc V-twin engines. They also produced an 8 hp motorcycle sidecar model fitted with a Vickers machine gun. Inter-war years (1921–1939) In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-stroke 350 cc single using a Prestwich Industries engine. In 1928, Royal Enfield began using the bulbous 'saddle' tanks and centre-spring girder front forks, one of the first companies to do so. Even though it was trading at a loss in the depression years of the 1930s, the company was able to rely on reserves to keep going. In 1931, Albert Eddie, one of the founders of the company, died and his partner R.W. Smith died soon afterwards in 1933.

Second World War (1939–1945) During World War II, The Enfield Cycle Company was called upon by the British authorities to develop and manufacture military motorcycles. The models produced for the military were the WD/C 350 cc sidevalve, 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. In order to establish a facility not vulnerable to the wartime bombing of the Midlands, an underground factory was set up, starting in 1942, in a disused "Bath Stone" quarry at Westwood, near Bradford-on-Avon, Wiltshire. Many staff were transferred from Redditch and an estate of "prefabs" was built in Westwood to house them. As well as motorcycle manufacture, it built other equipment for the war effort such as mechanical "predictors" for anti-aircraft gunnery: the manufacture of such high precision equipment was helped by the constant temperature underground. After the war the factory continued, concentrating on engine manufacture and high precision machining. After production

10

of Royal Enfield motorcycles ceased, the precision engineering activities continued until the final demise of the company.

Postwar Model G and Model J and ex-military C and CO (1946–1954) Postwar, Royal Enfield resumed production of the single cylinder ohv 350cc model G and 500cc Model J, with rigid rear frame and telescopic front forks. These were ride-to-work basic models, in a world hungry for transport. A large number of factory reconditioned ex-military sv Model C and ohv Model CO singles were also offered for sale, as they were sold off as surplus by various military services.

Springframe Bullets 350cc 1949-1970 In 1948, a groundbreaking development in the form of rear suspension springing was developed, initially for competition model "trials" models (modern enduro type machines), but this was soon offered on the roadgoing Model Bullet 350cc, a single cylinder OHV. This was a very popular seller, offering a comfortable ride. A 500cc version appeared shortly after. A later 1950s version of the Bullet manufacturing rights and jigs, dies and tools was sold to India for manufacture there, and where developed versions continue to this day.

500 Twins, Meteors, Super Meteors and Constellations 1949-1963 In 1949, Royal Enfields version of the now popular selling parallel twins appeared. This 500cc version was the forerunner of a range of Royal Enfield Meteors, 700cc Super Meteors and 700cc Constellations. Offering good performance at modest cost, these sold widely, if somewhat quietly in reputation. The 700cc Royal Enfield Constellation Twin has been described as the first Superbike.

250 cc models The 250cc class was important in the UK as it was the largest engine which a 'learner' could ride without passing a test. In the late 1950s and early 1960s, Royal Enfield produced a number of 250 cc machines, including a racer, the 'GP'and a Scrambler, the 'Moto-X', which used a modified Crusader frame, leading link forks and a Villiers Starmakerengine.The Clipper was a base-model tourer with the biggest-seller being the Crusader, a 248 cc pushrod OHV single producing 18 bhp (13 kW).

11

In 1965, a 21 bhp (16 kW) variant called the Continental GT, with red GRP tank, five-speed gearbox (which was also an option on the Crusader), clip-on handlebars, rearset footrests, swept pipe and hump-backed seat was launched. It sold well with its race-styling including a fly-screen resembling a race number plate which doubled as a front number plate mount. The Royal Enfield GP production-volume racer was first raced in the Manx Gra The Avon 'Speedflow' full sports fairing was available as an extra in complementary factory colours of red and white. Other variants were the Olympic[ and 250 Super 5, notable for use of leading-link front suspension (all the other 250 road models had conventional telescopic forks) and the 250 'Turbo Twin', fitted with the Villiers 247 cc twin cylinder two-stroke engine. nd Prix in September, 1964. Developed in conjunction with Royal Enfield Racing Manager Geoff Duke the first public appearance was at Earls Court Show in November, 1964. Using a duplex-tube frame, leading link forks and one-piece tank and seat unit, the 250cc two-stroke single engine was similar to other small capacity race machines offered from rivals Greeves, Cotton, DMW and particularly Villiers, which provided the engines for these Marques and many other manufacturers and bike-builders including the 'Starmaker' competition engine used for the Scorpion racer and Sprite scrambler.

Royal Enfield Interceptor During the onslaught of the Japanese motorcycle manufacturers in the late sixties and early seventies, the English factories made a final attempt with the 1962–;1968 series I and Series II. Made largely for the US market, it sported lots of chrome and strong performance, completing the quarter mile in less than 13 seconds at speeds well above 175 km/h (105 mph). It became very popular in the US, but the classic mistake of not being able to supply this demand added to the demise of this last English-made Royal Enfield. The Redditch factory ceased production in 1967 and the Bradford-on-Avon factory closed in 1970, which meant the end of the British Royal Enfield. After the factory closed a little over two hundred Series II Interceptor engines were stranded at the dock in 1970. These engines had been on their way to Floyd Clymer in the US; but Clymer had just died and his export agents, Mitchell's of Birmingham, were left to dispose of the engines. They approached the Rickman 12

brothers for a frame. The main problem of the Rickman brothers had always been engine supplies, so a limited run of Rickman Interceptors were promptly built. As far as the motorcycle brand goes, though, it would appear that Royal Enfield is the only motorcycle brand to span three centuries, and still going, with continuous production. A few of the original Redditch factory buildings remain (2009) and are part of the Enfield Industrial Estate.

Enfield Indians 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, and from 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.

Enfield India (since 1949) Royal Enfield motorcycles had been sold in India since 1949. In 1965, the Indian government looked for a suitable motorcycle for its police and army, for use 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, an enormous order for the time. In 1955, the Redditch Company joined Madras Motors in India in forming "Enfield India" to assemble, under license, the 350 cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). Under Indian law, Madras Motors owned the majority (over 50%) of shares in the company. In 1957 tooling equipment was sold to Enfield India so that they could manufacture components.Enfield of India continued producing the 'Bullet' long after the UK factory's bankruptcy, and changed its branding to 'Royal Enfield' in 1999. The 'Royal Enfield' name and rights had been purchased by Matt Holder of Aerco Jigs and Tools, at the bankruptcy sale in 1967. The business passed on to his son, David Holder, of the Velocette Motorcycle Company of Birmingham, UK. The Holder family has produced spares for Royal Enfield motorcycles continuously from 1967 through to the present, but did not trade under the Royal Enfield name. While David Holder objected to the use of 'Royal Enfield' by 13

Enfield of India, a UK court ruled in favour of the Indian company, who has now assumed the trademark, and produce motorcycles as Royal Enfield. Royal Enfield India manufactures and sells in India, and also exports to Europe as well as the Americas, South Africa and Australia. They recently entered the Indonesian market. Recently Royal Enfield has undergone a major retooling particularly in the engine department going from carbureted cast-iron engines to twin spark unit construction engines on all its models, with EFI available on their flagship 500 cc model. This retooling has sparked such an interest in these bikes that they have started double shifts at the plants. In August 2015, Royal Enfield Motors announced it is establishing its North American headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three bikes, the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this engine size represents an underserved market. The dealership will be Royal Enfield's first company-owned store in the U.S., according to Rod Copes, president of Royal Enfield North America. The company wants to establish about 100 dealerships in American cities starting with Milwaukee. "I live here, so I am biased. But in my mind, Milwaukee is kind of the center of motorcycling in the United States," said Copes, a former Harley-Davidson executive. "We view this as kind of our first flagship dealership," he added.

Enfield India Ltd. 1955 onwards Enfield India was renamed to Royal Enfield Motors in 1995. Royal Enfield was the brand name under which the Enfield Cycle Company (founded 1893) manufactured motorcycles, bicycles, lawnmowers and stationary engines. The first Royal Enfield motorcycle was built in 1901; the original British concern was defunct by 1970. The Enfield Cycle Company is responsible for the design and original production of the Royal Enfield Bullet, the longest-lived motorcycle design in history. Like other motorcycle manufacturers such as BSA and IZhMASh, the Enfield Cycle Company began business as a weapons manufacturer, most famous for the Enfield rifle. This legacy is reflected in the company logo, a cannon, and their motto, "Made Like A Gun". 14

In 1955, Enfield Cycle Company partnered with Madras Motors in India in forming Enfield of India, based in Chennai, and started assembling the 350cc Royal Enfield Bullet motorcycle in Madras. The first machines were assembled from components imported from England. Starting in 1957, Enfield of India acquired the machines necessary to build components in India, and by 1962 all components were made in India. Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967. The company's last new bicycle was the 'Revelation' small wheeler, which was released in 1965.[1] Production of motorcycles ceased in 1970 and the original Redditch, Worcestershire-based company was dissolved in 1971.[2] Enfield of India continued producing the 'Bullet', and began branding its motorcycles 'Royal Enfield' in 1999. A lawsuit over the use of 'Royal', brought by trademark owner David Holder, was judged in favour of Enfield of India, who now produces motorcycles under the Royal Enfield name.

15

VARIOUS MODELS OF MOTORCYCLES Model

Engine

Ensign

150 cc

Sherpa/Crusader

Mini Bullet

175 cc

200 cc

Years

1956– 1962

1963– 1980

1980– 1983

Notes

150 cc two-stroke engine

Motorcycle

with

a

two-stroke

175 cc Villiers engine. Sherpa was rechristened Crusader after a restyling job in 1970.

Motorcycle with an enlarged 200 cc Crusader engine.

It

was

a

favorite

amongst

racing

enthusiasts in India.

Scooter with a two-stroke 173 cc Villiers engine Fantabulus

175 cc

1962–

and heel/toe gearshift. First Indian made bi-

1970s

wheeler to have an electric starter. It used a Dynastart system.

It was a licensed copy of the Zundapp KS 175. It was the first motorcycle in India to sport a disc Fury

163 cc

1988–

brake. Wheels were cast alloy and front end

1995

sported 35 mm Paioli forks. Later model was called Grand Prix. Rare DW175 model came with drum brakes, both front and back.

16

Explorer

50 cc

Silver Plus

50 cc

1980–

Air-cooled version of the Zundapp KS50 with 3-

1990

speed gearbox

1980–

Step thru moped with kick start and hand gear

1990

shift. Based on Zundapp ZS/ZX 50 models.

Mini moped designed by Morbidelli of Italy to MOFA

22 cc

1980–

manufacture in India. The 22 cc two-stroke engine

1990

had a centrifugal clutch and the fuel was carried in the frame down tube.

Cruiser style motorcycle with 535 cc (87 mm bore) based on Fritz Egli tuned Bullets. Hi-volume oil Lightning

535 cc

1980–

pumps, 4-speed gearbox and two tone paint. Indian

2003

Market only model. Also available with electric start. A rare 350 cc model was also sold for some time.

Diesel

Diesel/Taurus

312 cc

1993– 2001

motorcycle

with

a

312 cc

6.5 bhp Lombardini diesel engine, and 3.5 hp version, Gearbox was beefed up to withstand increased torque. Taurus came with heavy-duty luggage rack for vending jobs.

Introduced with the classic 350 cc Bullet engine Machismo

346

1989–

with 4-speed gearbox; it later attained theAVL lean

cc/499 cc

2009

burn engine and eventually a 5-speed gearbox. Later, LB500 model came with the 500 cc AVL 17

lean burn engine. Sheet metal and trim had slight variations depending on the year. Indian market only model.

Originally started manufacturing in 1955 with 350 cc iron-barrel engine and 4-speed Albion gearbox. Bullet Continental sold in USA in 1990s with left shift 4-speed gearbox. Attained the Unit Construction Engine in May 2010. Many sub Bullet 350

346 cc

1955–

models introduced during its lifespan like Bullet

present

Superstar. In 2010, the classic iron-barrel engine was replaced with the 350 cc UCE engine. Bullet 350 is the cheapest of all the Royal Enfield models and is devoid of an electric starter, front disc brake, gas filled shocks etc. Only available in black with gold pinstripes

500 cc Bullet with classic iron-barrel engine. Sold in different variations with both 4-speed and 5-

Bullet 500

499 cc

1990– present

speed gearboxes(Sixty-5). Sold worldwide. In 2009, classic Bullet 500 production has come to an end; But the Classic 500 with the fuel-injected UCE engine is sold as Bullet 500 in almost all international markets.

Indian market only model with 346 cc classic Electra

346 cc

2001–

engine. 4-speed or 5-speed gearbox. Later models

present

with electric start and TCI ignition. Attained the UCE engine in 2010 and is now known as Electra

18

Twinspark.

Electra-X

499 cc

2009– present

Export only model with 500 cc AVL lean-burn engine and 5-speed gearbox. Attained UCE engine in 2009

Cruiser style motorcycle that was a big hit to command almost half the domestic sales. Attained Euro-4 compliant Unit Construction Engine(UCE) Thunderbird 350

346 cc

2002–

in 2008 and was rechristened Thunderbird Twin

present

spark. In 2013 it underwent a major facelift introducing digital speedometer and fuel gauge along with projector headlamps. Indian Market only model.

With Euro-4 compliant Unit Construction engine. Classic 500

499 cc

2010–

Both Indian and International markets. Sold as

present

Bullet 500 in most International markets. Fuel injection and 18-inch wheels. ES only.

Classic 350

346 cc

Classic Chrome

499 cc

Desert Storm

499 cc

2010–

With Euro-4 compliant Unit Construction engine.

present

Indian market only. UCAL\BS29 carburetor.

2010–

Variant of the 500 cc Classic with prominent

present

chrome body elements.

2010–

Variant of the 500 cc Classic with Brown Sand

19

present

colour.

A flat-track style version of the 500cc Bullet

Fury

499 cc

2011– 2012

Electra EFI,sold exclusively in the UK by importer Watsonian

Squire. Watsonian

Squire

announced that it was ceasing distribution of all Royal Enfield motorcycles in 2013.

500 cc variant of the Thunderbird. Fuel injection, Thunderbrird 500

499 cc

2013–

digital console, electronic fuel gauge, projector

present

headlamps and 18-inch wheels. Currently the flagship model of Royal Enfield India.

350 cc variant of the Thunderbird. Digital console, Thunderbird 350

346 cc

2013–

electronic fuel gauge, projector headlamps and 18-

present

inch wheels. Currently the flagship model of Royal Enfield India.

Model with 500cc engine. 5-speed gearbox. Forest Green/Black 500

499 cc

2013–

Electric start and TCI ignition. Attained the UCE

present

engine in 2013 and is now known as Forest Green/Black.

Cafe Racer styling. Fuel injection, Digital console,

Continental GT

535 cc

2014– present

electronic fuel gauge, projector headlamps Twin down tube cradle frame, Paioli,Twin gas charged shock absorbers with adjustable preload, 80mm travel.

20

Himalayan Off

Himalayan

411 cc

2016– present

roader

(Model with 411 cc engine , liquid cooling , high ground clearance , mono shock suspension (First for any Royal Enfield Bike), Mainly for off road purposes.

21

CURRENT MODELS BY ROYAL ENFIELD ROYAL ENFIELD BULLET 350 The legendary Bullet 350 needs no introduction. Now Bullet 350 is with all new Unit Construction Engine. This classic machine has kept pace with advances in engineering and ergonomics without diluting its impeccable pedigree. A long wheel base and bigger tyres provide increased stability and road grip, making it ideal for long distance travel.Its aristocratic black & gold livery and thumping engine beat remind passers by that they are in the presence of automotive royalty.

ROYAL ENFIELD BULLET 500 The new Bullet 500 is essentially the motorcycle with the timeless iconic handcrafted design of the legendary Bullet now powered with a solid 500 cc Unit Construction Engine with Twinspark ignition for better combustion, superior power delivery and improved fuel economy. Now technologically equipped with modern advances in engineering this motorcycle still maintains its impeccable lineage it has withheld for decades altogether. The iconic Bullet is now available in an all new shade of Forest Green with the same aristocratic livery pin striping now in a silver finish symbolic of automotive royalty

ROYAL ENFIELD BULLET ELECTRA The Electra now comes packed with the power and reliability of Royal Enfields latest Twinspark Unit Construction Engine. Along with the UCE engine come the double benefits of more power, and better fuel economy, more reliability and lesser maintenance. In terms of styling the latest Electra still keeps it simple following the lines of the traditional Bullet but still adding its unmistakably distinctive style to it. Everybody still makes way for the Electra Twinspark.

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ROYAL ENFIELD CLASSIC 350 The smaller twin of the Classic 500, the Classic 350 will hold its own against any other motorcycle and then pull some more. The Classic 350 shares its power plant with the legendary Thunderbird Twinspark. The torque to flatten mountains and the fuel efficiency to cross entire ranges comes in the same understated yet charming styling.This is a motorcycle that does not need to shout to be heard. Born of a rich heritage and bred with Royal Elegance this 350cc thumper has all the qualities of a typical Royal Enfield. Appreciated then, appreciated now...

ROYAL ENFIELD CLASSIC 500 Armed with a potent fuel injected 500cc engine and clothed in a disarmingly appealing post war styling, this promises to be the most coveted Royal Enfield in history.For those who want it all. The power, the fuel efficiency, the reliability and simple, yet drop dead gorgeous classic styling. The classic turns heads not because it wants to but because it can‟t help it. You will appreciate the beat not just for the music it creates but also for the muted feeling of strength and power that it signifies.

ROYAL ENFIELD THUNDERBIRD 500 The all new Royal Enfield Thunderbird now with a powerful 500 cc engine, a 20 liter tank, digital meter console, LED tail lamps and in three striking shades of black gives a new definition to Highway cruising.Perhaps one of the most anticipated models from the Royal Enfield stable, Thunderbird 500 is poised to enhance the pleasure of leisure motorcycling amongst the touring enthusiasts.

ROYAL ENFIELD CONTINENTAL GT The Royal Enfield Continental GT is the lightest, fastest, most powerful Royal Enfield in production. It‟s a machine with a story, a nod to motor cycling‟s finest hour; a painstaking collaboration. It is also the best expression yet of a cultural phenomenon that has simply refused to fade away - the café racer.

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CHAPTER -3 METHODOLOGY & RESEARCH

Meaning of Research:Research in simple terms refers to a search of knowledge. It is also known as systematic and scientific search for information on particular topic or issue. It is also known as the art of scientific investigation. Research methodology is the way of systematically solving the research problem. It is a science of studying how research is conducted scientifically. It is not only important for the researcher to know the research techniques/methods, but also the scientific approach called methodology. Continuous or interval data are data that have an intrinsic numeric value, e.g.: performance rating, person‟s salary. Categorical or nominal data come from measures that have no inherent numeric value that are simply categories such as gender, department, method used etc Definition:According to Clifford Woddy Research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Objectives of research:The objective of research is to discover answers to questions by applying scientific Procedures. In the other words, the main aim of research is to find out truth which is hidden and has not yet been discovered. Although every research study has its own specific objectives, research objectives may be broadly grouped as follows:

Provide first class facility to our customers.



Maintain the highest standards of security.



Knowledge of customers Perception. 24



Best quality and services in dealing the solution.



To increase the sales in market.

Research Design:Research design is nothing but it is the blue print of what actual research has to be made so that different kinds of project or different kinds work can be properly taken place. Research design has greater impact in collection and evaluation of data as it tells us whether the information collected is as per requirement or not.

Types of research design:

Exploratory research formulate is the other term used for exploratory research the important objective of such studies is for problem formulation with more precision for research and developing research hypothesis to get the result for operation.



Descriptive and diagnostic study studies describing the individuality of particular individual or group are called descriptive research whereas the research studies defining the occurrence of any happening with others are called diagnostic research.



Hypothesis testing and research design: hypothesis testing research studies are the studies where hypothesis is tested to define the causal relationship between variables in operation.

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Sources of data collection:Primary data refers to the data that the investigator collects for the very first time. This type of data has not been collected either by this or any other investigator before. A primary data will provide the investigator with the most reliable first-hand information about the respondents. The investigator would have a clear idea about the terminologies uses, the statistical units employed, the research methodology and the size of the sample. Primary data may either be internal or external to the organization. Secondary Data – refers to the data that the investigator collects from another source. Past investigators or agents collect data required for their study. The investigator is the first researcher or statistician to collect this data. Moreover, the investigator does not have a clear idea about the intricacies of the data. There may be ambiguity in terms of the sample size and sample technique. There may also be unreliability with respect to the accuracy of the data.

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Sample Size:-

Sample size of 60 people is taken & interview for the studies done. And from these they are randomly selected.

Sampling:-

Sampling technique:

No probability sampling

Sample unit:

Employees, Managers.

Sample size:

60 respondents (age between 18-50 yrs)

Method:

Direct survey through questionnaire

Data analysis:

Pie chart

Area of survey:

Raipur [C.G.]

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CHAPTER-4 OBJECTIVE OF STUDY

1. The present study has been conducted in order to know the customer awareness level of Royal Enfield Company‟s product range. 2. To make a satisfaction analysis of people on the performance, aesthetics, features, serviceability and company image of Royal Enfield Bullet they own. 3. To analyses the attitude and perception level of people towards the Royal Enfield Bullet they own. 4. To offer suggestions based on the findings.

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CHAPTER - 5 MARKET SHARE AND GROWTH TRAJECTORY

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CHAPTER - 6 SWOT ANALYSIS SWOT Analysis of Royal Enfield Bullet with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis Brand Name

Royal Enfield Motors Ltd

Parent Company

EICHER MOTORS

Category

Motorcycles

Sector

Two-wheeler

Tagline/ Slogan

Made like a gun goes like a bullet

USP

Indian cruiser bike

Segment

Boys who want to go for bike cruises

Target Group

Middle class boy of the age group 18-30

Positioning

Powerful cruiser bike to tame the roads

STP

SWOT

1.Oldest 2.Excellent Strengths

3.High

motorcycle

brand

branding performance

in and and

the

world

positioning comfort 32

4.Used on a large scale for military purposes because of its sturdiness

1. Weight of the motor cycle can be an issue for few customers. Weaknesses

2. Mileage of high cc bikes is an issue

1.Tap

the

Opportunities

2.More brand visibility

Threats

1.Threat from other competitors

urban

market

Competition

1.Harley Davidson Cruiser Bikes 2.Bajaj Cruiser Bikes Competitors

Other Cruiser bike manufacturers.

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CHAPTER -7 MARKET STRATEGY ADOPTED BY ROYAL ENFIELD „Bullet 350‟ – the name itself is enough to cause Goosebumps amongst its most loyal followers. The bullet, an iconic brand is one of India‟s oldest bikes. Owned by the Royal Enfield brand, it is present in over 40 countries and has fans all over the World. Bullet almost has a cult status in India something enjoyed by Harley Davidson and Volkswagen Beetle in other parts of the World and has a dedicated legion of followers. Also there‟s a high co-relation between the person‟s obsession with the Bullet and his/her father‟s love for the same. The love for the bullet is often passed on as lineage from generation to generation. Often bullet owners have felt the magic for the thump as kids when their parents or elders in the family got home a bullet. The Indian army was amongst the first customers of the Bullet and thus the earlier users have defined how the brand is perceived now. The Bullet rider is considered to a person holding a position of power such as an Army Officer, a Policeman or a father – as the head of the family. This makes the bullet truly aspirational among the boys and something for which most guys would want to covet. Designing brand communication for such an iconic brand is always a challenge since the right mix of portraying heritage and legacy vs modern well equipped machine has to be chosen. The Bullet has always been associated with independence, self expression, power and passion. Even the marketing campaign „Leaving Home‟ focused on the same aspect as it showed a boy cutting his umbilical cord to ride his dream bike. The brand communication was based on the insight that many young men stay at home for too long missing out on the fun of an independent life. There is cult following for the Royal Enfield brand motorcycles by the crowd. But as we know Legendary Brands like Hindustan Motors (Ambassador Car) , Nokia Mobiles, HMT watches didn‟t survive as they can‟t keep up with time., although they made gem of a product. Royal Enfield didn‟t repeat the mistake the above companies did and made a switch to UCE (Unit Construction Engine) and modest equipments for the bike. 34

Changing to UCE engines is the biggest strategy for Royal Enfield company from old cast iron and aluminum engines which features a different Change in Strategy after Year 2000: Marketing Mix: Product: Product which is the ruff & tuff all terrain motorcycle. It has been upgraded with technology such as EFI (Electronic Fuel Injection) for better response, heavy cast iron diesel engine of the earlier model has been replaced by a lighter but equally power full single cylinder four strike petrol engine which is made from aluminum. The gears have removed from the right side to left side to need general standards. But it was ensured that the “VINTAGE” and “Macho” appeal of the bike is not damaged. Place: The market of Royal Enfield can be divided basically into two segments: 1. Metropolitans: Tier 1 &Tier 2 Cities. 2. Small Cities: Tier 3. DH (District Headquarters) But in both the market it commands premium position. Hence the showrooms must be opened in the prime locations of the cities irrespective of metropolitans or small cities. Promotion: It is promoted in MENs magazines, Adventure magazines, local print media, adventure trips ie. Himalayan Odyssey and Fan Clubs. Price: It is premium product hence demands a premium price. Segmentation, Targeting & Positioning (STP) Segmentation: It is segmented as a leisure and adventure curser bike. Though in Tier 3 & DH market it is associated with the social/status symbol. Targeting: It is targeting Bikers in the age group of 25-45 years of age; they are working executives as in the case of Tier 1 & 2 Cities and young, rich & powerful in terms of Tier 3 & DH. Positioning: In Tier 1 & 2 cities it is positioned as a leisurely, adventure, curser bike. But in Tier 3 & DH it is a bike which shows your social status is a symbol of your power in society. Communication and distribution • India‟s first cult bike. • Its an iconic brand to stay true to character and be proud of what is represents. • Customers are value expressive, sense of independent • Campaigns – use cinema, print media • Leave Home campaign - Thunderbird • Exhibitions – Photography • the art of Motor cycling 2010. • Sponsors trips/events • Mark rides, Member rides throughout the year • Organizes “Himalayan Odyssey” • Publications – The beat, 35

coffee table book etc. • Forums, clubs, events • No proper service channel structure • Limited number of Royal Enfield zones • Established the field quality RAF • New company owned showroom • after sales service is problem. • Dealerships and expansion The Missing Communication If we observe through the Ad word the first Ad of Bullet in year around 1960 shows bullet as “SHAAN KI SAWARI” , which hits the bulls eye of showcasing it as a premium product and associated with pride of the owner. Then we can see the strategy to attract the youth, when Bullet was shown in Sholey with Jai &Veeru driving it in the famous song “YEH DOSTI HUM NAI CHORENGE” this gave a boost to brand equity of Royal Enfield. It was the 1970 and it included the youth in the market base of bullet. The 1980s saw the entrance of Yamaha & Hero Honda. Yamaha was having excellent pick up and Hero Honda had excellent mileage. The problem started when Royal Enfield wrongly identified them as its competitors and started to compete with them. They shifted their focus from the present loyal customers to the mass & much younger generation. Their “Bullet- Machismo” Ad clearly shows the confusion in their strategy. First time in the history a lady model was used, bullets were never shown as a tool to impress girls. They had shown the impossible stunts which are impossible with a bike like Bullet. Bullet was for “Joy of Riding”,”Adventure”,”Shaan”. Thus the phase from 1990 to 2000 can be called a dark phase and it nearly killed the “Royal Enfield” brand. Even the new masters of “Royal Enfield” who acquired them in 1994 were planning to shut down the Brand. But things change a young man who was a diehard fan of Royal Enfield Mr. Laltook charge of “Royal Enfield” he upgraded the bikes with modern technology but keeping intact the “Vintage” and “Macho” attributes of Brand. He promoted Fan Clubs, increased visibility through accessories, Organized events like “Himalayan Odyssey” and launched the Ad campaign in 2004 “JAB BULLET CHALE TU DUNIYA RASTA DE”. He re-launched the Bullet “Classic” series. And all this revived the brand “Royal Enfield”. Still there are some issues, which Royal Enfield has to solve but never the less it seems they are on the right track. The brand Analysis of Iconic Royal Enfield The year 2000 could have been decisive. That was when the board of directors at Eicher Motors decided to either shut down or sell off Royal Enfield - the company's Chennai-based motorcycle division, which manufactured the iconic Bullet motorbikes. For all its reputation, the sales of the bike was down to 2,000 units a month against the plants installed 36

capacity of 6,000; losses had been mounting for years. Though the bikes had diehard followers, there were also frequent complaints about them - of engine seizures, snapping of the accelerator or clutch cables, electrical failures and oil leakages. Many found them too heavy, difficult to maintain, with the gear lever inconveniently positioned and a daunting kick-start. Just one person stood up to the board, insisting Royal Enfield should get another chance. He was Siddhartha Lal, a third generation member of the Delhi-based Lal family, promoters of the Eicher group of companies. Lal, then 26, was an unabashed Bullet fan: he even rode a redcoloured Bullet while leading the baraat (procession) to his wedding venue, instead of the traditional horse.Lal felt Royal Enfield could still be saved. The bike had its reputation, a cult following, an instantly recognizable build, and inspirational value. Changes had to be made to keep up with the times and make the bike more acceptable, and therein lay the problem. Royal Enfield fans liked the bikes exactly the way they had always been Retaining the bikes' rugged looks was a given, including the build, the design of the head lamp and the petrol tank. But should the gears be shifted close to the rider's left foot - as in most bikes - or retained on the right side? The question gave Lal and his team many sleepless nights, since long time users were dead opposed to the change. The engine was another thorny question. The old cast iron engine was a relic of the past. Its separate gear box and oil sump design made it prone to oil leaks and it seized up very often. Its ability to meet increasingly strict emission norms was also suspect. A modern aluminum engine would eliminate these problems, but it would lack the old engine's pronounced vibrations and beat - which Royal Enfield customers loved. Laws of physics made it impossible to replicate these with the new engine. But the new engine, unlike the old, had hydraulic tappets, a new engine arrangement, new metal and fewer moving parts. Obviously, it did not produce the vibrations and the beat of the old, but international experts were consulted and sound mapping carried out for over 1,000 hours to ensure it produced the maximum rhythmic vibrations possible and a beat, which was 70 per cent of the amplitude of the original. The new engine had 30 per cent fewer parts and produced 30 per cent more power than the old, with better fuel efficiency. By 2010, all Royal Enfield models had begun to use the new engine. Two other problems needed to be addressed: the quality of some of the components Royal Enfield bikes were using, and the sales experience. To tackle the first, shop floor processes were fine-tuned, while suppliers were exhorted to improve quality levels. Royal Enfield also embarked on a large scale internal exercise to tone up performance. 37

Today, Royal Enfield's problems are of a different kind. How should it scale up without diluting brand equity? It also faces challenges from iconic global brands such as Harley-Davidson which has entered the Indian market. With other options available, will its customers continue to sit out the six-month period it takes to provide deliveries? In order to augment the production for growing market demand, your company has acquired 50 acres of land for construction of its new manufacturing facility at Oragadam, Chennai, Tamil Nadu. This will enhance Royal Enfield‟s annual production capacity to 150,000 units. The new facility is expected to commence production in first half of 2013 and goes to full capacity by 2015. The Company is strenuously working to ensure that the opportunities are converted into profitable growth. A critical element in this strategy is to continually expand the customer offering. Every year, the Company conducts a study to develop a comprehensive 360° view on the opportunities, risks and threats to the business. These include areas such as market trends, new competition, changing customer preferences, disruptions in supplies, product development, talent management etc. The Company has robust ERP systems based on SAP platform. This ensures high degree of systems based checks and control. The Royal Enfield unit was able to produce and sell 42% more motorcycles in 2015 as compared to 2010. Even during 2008 recession, when auto sector was severely damaged, Royal Enfield Bullets had very good performance in terms of sales.

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CHAPTER-8 CONCLUSION 1. The buying behavior is governed predominantly by the need for Power and respect for the iconic Brand. 2. The internal locus of control is by and large dependent on the Sense of Control the motorcycle offers and also on the Sense of Freedom that users associate with it. 3. Users are mostly Professional Males, 25-45 years of age, including some students. 4. Users‟ display mostly Value-Expressive behavior and Ego-defensive behavior is not seen amongst responses. 5. People who choose not to buy Bullets do so because of high price, maintenance and spares hassles and also because some feel they are not built for it. 6. Advertisements are rarely recalled and are highly ineffective amongst non- Bullet riders. 7. Bullets are perceived as low on cost-effectiveness, but high on ride comfort and reliability.

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RECOMMENDATIONS: 1- Improved Sales and Service Network by Franchise or dealership on Profit Sharing Basis Royal Enfield doesn‟t have a very good sales and service network. Marketing the product is not limited to sales only. There should be extensive network of service centers so that customers have a very good bullet experience The customer should get the service network similar to that of Maruti –Suzuki. Also a helpline number should be launched, and on calling this, customers can avail of service even in some remote localities 2. Marketing Communication should focus on satisfying the needs for Respect, Power and Comfort. 3. A non-flamboyant well-built brand ambassador may be chosen to represent the Brand. They should display bullet in some action movie, as it was shown in Sholay to attract the young towards it. 4. They should tie-up with adventurous brands like Thumps Up or Mountain dew to give a complete revamp of branding. 5. The RE Apparels available on their exclusive stores should be made available in college counters to make them available to the young students. It will create awareness among youth and more of them will feel proud using the apparels like- bag, jacket, boots etc 6. They can plan to export RE to other developing economies like- Brazil, China and Russia to capture the market there Royal Enfield should concentrate on building around the iconic status it already enjoys if it plans to attract customers migrating to other manufacturers. To keep users engaged with the brand, Royal Enfield organizes adventure filled, fun and leisure motorcycle trips all around the year with Himalayan Odyssey being the most prominent. There are long waitlists of enthusiasts wanting to go on such trips. Royal Enfield also comes out with the quarterly Royal Enfield magazine and an annual Royal Enfield Ride calendar. There are 2 special Royal Enfield coffee table books with one of them dedicated to the Himalayan Odyssey.

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Another factor which has contributed immensely to building the Royal Enfield and the Bullet brand is the clubs. It is one of the reasons for the cult brand that Royal Enfield is today. The first Royal Enfield club was started in Dec 1995 and since then a lot of similar clubs have evolved all across the country. These clubs are also a major reason why people want to own a Bullet so that they can be a part of one of these coveted clubs.

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CHAPTER - 9 BIBLIOGRAPHY

1. ROYAL ENFIELD OFFICIAL SITE (http://royalenfield.com/) 2. WWW.WIKIPEDIA.COM/ROYAL ENFIELD 3. MARKET SHARE DATA FROM INTERNET (www.bikeadvice.in) 4. www.vbook.pub.com

BOOKS : a. Dr. M.A. Lokhande b. Dr. Vishal Sunil Rana c. Dr. Lokahande MA &Rana V.S. – Scenario of Indian Automobiles

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