a study on marketing mix towards royal enfield motorcycle with

A STUDY ON MARKETING MIX TOWARDS ROYAL ENFIELD

MOTORCYCLE WITH SPECIFIC REFERENCE TO HSR SERVICES,

BANGALORE.

Project Report submitted in partial fulfilment of the requirements for the

award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of

BENGALURU CENTRAL UNIVERSITY

Submitted By

Sushma Heroorkar

Reg. No: MB187760

Under the guidance of

Ramya S Mr. Gerald Jonathan

Assistant Professor Sales Manager

R V Institute of Management Royal Enfield HSR Service

R V INSTITUTE OF MANAGEMENT

BANGALORE

2019–2020

DECLARATION

I hereby declare that “A STUDY ON MARKETING MIX TOWARDS ROYAL ENFIELD

MOTORCYCLE WITH SPECIFIC REFERENCE TO HSR SERVICES, BANGALORE” is

the result of the project work carried out by me under the guidance of Ms. Ramya S and

Mr.Gerald Jonathan in partial fulfilment for the award of Master’s Degree in Business

Administration by Bangalore Central University.

I also declare that this project is the outcome of my own efforts and that it has not been

submitted to any other University or Institute for the award of any other degree or Diploma or

Certificate.

Place: Bangalore Name: Sushma heroorkar

Date: Register Number: MB187760

CERTIFICATE BY EXTERNAL MENTOR

CERTIFICATE OF ORIGINALITY

CERTIFICATE OF PLAGIARISM

ACKNOWLEDGMENT

I oblige and humble myself to thank all the people who have been associated with me and played

a key role towards the completion of this internship project work.

I express my sincere thanks to our director Dr. Purushottam Bung, Director, RVIM for

extending his support by permitting me to do my internship work.

My deepest gratitude to Ms Ramya S, RVIM and Mr Gerald Jonathan, Sales manager, Royal

Enfield HSR Service. , Bangalore for guiding me all the way.

Place: Bangalore Name: Sushma heroorkar

Date: Register Number: MB187760

TABLE OF CONTENTS

CHAPTER

NO

PARTICULARS

PAGE

NO

1 INDUSTRY AND ORGANISATION PROFILE

1.1 Company profile

1.1.1 Vision and mission of royal Enfield

1.1.2 Awards and achievements

1.1.3 Royal Enfield made like a gun

1.1.4 Mckinsey 7s model for the industry

1.1 Mckinsey 7s model

1.2 Industry profile

1.3 Porters five force model for the industry

1.4 Theoretical background

1.4.1 Marketing mix

1.4.2 Importance of the topic

1.5 Need for the study

1.6 Scope of the study

1-23

2 METHODOLOGY

2.1 Objectives

2.2 Limitation of the study

24-25

3 SWOC ANALYSIS OF THE RESEARCH

3.1 SWOC Analysis

26-28

4 OUTCOMES OF THE STUDY

4.1 Marketing mix of Royal Enfield

4.2 Research design

4.3 Statement of the problem in marketing mix

4.4 Findings of the study

4.5 Suggestions

29-36

5 LEARNINGS AND CONCLUSION

5.1 Experience

5.2 Learnings

5.3 Conclusion

37-38

BIBLIOGRAPHY 39

ANNEXURES 40

A STUDY ON MARKETING MIX TOWARDS ROYAL ENFIELD MOTORCYCLE

RV Institute of Management Page 1

CHAPTER 1

INTRODUCTION

ROYAL ENFIELD

Royal Enfield was a brand name under which Enfield Cycle Company Limited of Redditch,

Worcestershire, sold motorcycles, bicycles, lawn mowers and stationary engines that

manufactured them. The Enfield Cycle Company also used the Enfield brand without Royal.

The first Royal Enfield motorcycle was built in 1901. The Enfield Cycle Company is responsible

for the original design and production of Royal Enfield Bullet, the most durable motorcycle

design in history.

Enfield's remaining motorcycle business became part of Norton Villiers in 1967, with the closure

of the business in 1978.

Gradually, Royal Enfield is an Indian cruise assembly brand labelled "the most experienced

bicycle brand worldwide in the non-stop generation" made on production lines in Chennai in

India. Authorized by Royal Enfield by the Indian Madras Motors, he is currently an assistant to

Eicher Motors Limited, an Indian car manufacturer. The organization manufactures the Royal

Enfield Bullet and other single chamber bicycles. First created in 1901, Royal Enfield is the most

established bicycle brand on the planet that is still underway, and the Bullet model gets a load

from the longest generation of bicycles ever seen.

HSR SERVICES

HSR Services is one of the top leading Royal Enfield’s authorized dealers in Bangalore, having

three retail stores, three service centres and one pre-owned motorcycles vintage store.

This study is based on the reference with HSR Services retail store, Banashankari.

HSR Services at Banashankari is a retail sales showroom where two-wheeler enthusiasts

can choose from a wide range of motorcycles.



The showroom displays a wide range of motorcycle models both, new and popular ones

along with apparels and accessories.

The sales staff employed at the showroom is well-trained and experienced. The entire

team is committed to offering the best of service to its customers and leaves no stone

unturned in ensuring potential buyers find something that matches their requirements

perfectly.

Their suggestions make it convenient for customers to make a well-informed decision.

They are able of providing the required information related to the salient features,

specifications, on-road price and model availability.

They also helps in gathering information related to finance, loan and insurance

availability. Customers can contact the retailer at any time for any information or can

have a visit to the store from morning to late evening. The setup makes the purchasing

process seamless for customers by accepting payments via ready cash, Credit Cards, ,

Visa Card, Cheques and Master Card.

SALES, MARKETING AND BRANDING

Royal Enfield has revealed a separated retail understanding to its clients through different

initiatives.RE has characterized its natural way of thinking of "PUREMOTORCYCLING" for its

bound together worldwide retail personality. This interesting personality has been taken off to

RE stores in India and its restrictive stores in universal market. This retail configuration has

drawn motivation from its image theory of making an atmosphere like what could be found in

the front room of an eager bike fan. The new substance of RE's stores have made a

benchmarking engine cycle retail. New retail character stretches out itself to each part of RE

proprietorship experience. The administration focuses are likewise structured on same lines.

International market strategy: Having seen immense open doors in worldwide markets,

organization is executing topography explicit long haul and economical techniques to

accomplish development. RE has changed system for North America by setting up 100%

auxiliary and finished circulation through seller to give a unique stimulus and regard for the

market. As a component of RE's city drove approach, the brand has set up twelve select stores in

key global urban communities. Those are five in Colombia, two in London and one each in



Dubai, Paris, Bangkok, Madrid and Jakarta. These selective stores will assume a noteworthy job

in setting up the brand in these business sectors and give a decent footing for deals, showcasing

and riding activities of the organization to manufacture cruiser aficionado network.

1.1 COMPANY PROFILE

1.1.1 VISION AND MISSION OF ROYAL ENFILED:

VISION:

“ To be recognized as the industry leader driving modernization in biking India and the

developing world”

MISSION:

“ Aims to continuously improve biking efficiency in India and developed markets.

Customers are the integral part of the organisation and create a family of bikers bond”

1.1.2 AWARDS & ACHIEVEMENTS:

The Royal Enfield Interceptor 650 wins the Bike of the Year 2019 at the Times Auto Awards

2019 powered by Top Gear.

Interceptor 650 wins Bike India's - Motorcycle of the Year award 2019.



Royal Enfield Garage cafe won the "Excellent Dining Category" in its first year of tasks.

The atmosphere of the bistro is motivated by the Royal Enfield motorcycling lifestyle -

laid-back, unassuming and loose, much like the sitting mood of a stationary Royal

Enfield, where clients can invest energy comfortable and the menu at the bistro has been

curated with a worldwide intrigue to give clients a heavenly choice of nearby and global

foods.

Royal Enfield Takes fifth position in cruiser deals. Imperial Enfield has move into the

rundown of top 5 bike producers in India, on the back of breath-taking development.

Furthermore, all the while, Royal Enfield has surpassed Yamaha India, which currently

sits at sixth position.

In the budgetary year 2015-16, Royal Enfield sold 4,99,791 units, enlisting a solid

development of 53 percent over its deals in the last FY 2015 of 3,24,0556 units. With this

development, Royal Enfield now accepts position as one of the top bike producers in

India, just behind Hero MotoCorp, Bajaj Auto, Honda Motorcycle and Scooter India and

TVS Motors. Whenever reached, Royal Enfield declined to remark on the advancement.

Imperial Enfield's business volume developed by 50 percent in every one of the previous

five years. To fulfil rising need, the organization is setting up another plant close

Oragadam, which will build generation ability to 900,000 by 2018.Yamaha India missed

out to Royal Enfield not just in view of the last's solid deals numbers, yet additionally due

to Yamaha deals slipping in the last monetary by 4.4 percent - from 3, 48,312 units in FY

2014-15 to 3, 32,978 units in FY 2015-16. Yamaha's bike deals be that as it may, has



seen development in the course of the last financial - up 46.7% from 2,16,970 bikes in

FY 2014-15 to 3,18,450 bikes in FY 2015-16, drove generally by the Fascino. With the

dispatch of the new 110cc worker bike Saluto RX just as the up and coming dispatch of

the new bike Ray-ZR, Yamaha will look shore into some more volumes in the coming

months.

Royal Enfield too will take a gander at sloping up certain deals with the ongoing dispatch

of the 400cc reason assembled experience tourer, Himalayan. The Himalayan has created

a great deal of intrigue and appointments for the bicycle have just started. The top of the

line bike for Royal Enfield however remains the Classic 350 - with notorious looks,

regardless it remains a most loved among Royal Enfield fans. As of now, Royal Enfield

works through 17 organization worked stores and 496 sellers in every single real city and

towns in India, and fares to more than 50 nations over the world, including the US, UK

and a few European and Latin American nations, just as the Middle East and South East

Asia.

1.1.3 ROYAL ENFIELD-MADE LIKE A GUN:

Royal Enfield, the oldest as well as the finest motor cycle in the country which is still in

market. The Royal Enfield motorcycles are licensed from the Madras Motors in Chennai. Royal

Enfield tied up with Eicher Group, an automotive company in India, and merged with it in 1994.

Eicher Group produced the Royal Enfield Bullet and single cylinder motorcycles. The first

motorcycle which was manufactured in 1901 has passed more than 75 years production. The

Eicher group started manufacturing so many motorcycles in India ranges as Royal Enfield classic

350, Bullet 350, Thunderbird 350x, Himalayan, Bullet 500, Classic 500, thunderbird 350,

thunderbird 500x, thunderbird 500, continental GT 650, Interceptor 650 and Bullet Trials Work.

The Royal Enfield brags of an all-metal development with less number of plastic parts (aside

from the Himalayan) and is fit for withstanding many years of utilization if the bike is kept up

appropriately. You realize we are not kidding when there are RE bikes on special today which

are at any rate 10-20 years of age and still runs.



Until some time back, the Royal Enfield used to be a gained taste. Yet, with the coming

of new highlights like electric begin, the Royal Enfield is anything but a faraway idea.

Everybody can ride a RE now. The way towards riding a Royal Enfield has turned out to

be a lot simpler gratitude to new innovation.

In 1990, Enfield India launched a diesel version of the motorcycle called the Taurus. It

failed to get a commercial success.

The street nearness is basically amazing. No, we are dead serious. The resonating bang

from the Indori Botal fumes tail-pipe on an unfilled street during a languid morning

compensates for a pleasant dream for any Royal Enfield aficionado. Regardless of which

model you go for, a Royal Enfield will dependably pull in consideration.

A Royal Enfield understands that old-world fascinate with its retro-styled looks and a

pound single-chamber engine for sure. With its well proportioned nature, bold chrome

fittings, carefully hand-painted fuel tank, the Royal Enfield is in each feeling of the word,

retro classic.

The Royal Enfield bikes have a better than average measure of low and top of the line

torque to vanquish pretty much every landscape.

Of course, the Royal Enfield is a standout amongst the most planted bikes around. No

measure of wind velocities hitting a RE rider is sufficient to influence it around.

Considering pretty much every RE cruiser tips the scales at over 190 kilos, wet, with the

rider weighing at a normal 78 kilos, the bikes remain planted out and about effectively.

Royal Enfield is there in our nation since decades, even before the car business prospered

in India. It has existed even before there was any enthusiasm for engine vehicles and

before riding transformed into a religion.



1.1.4 MCKINSEY’S 7S MODEL FOR THE INDUSTRY:

Image 1.1 Mckinsey’s 7s Model

STRUCTURE:

The structure refers to the design of the work between the section and the members of the

organization, assigning responsibility and granting authority to perform the assigned tasks.

The structure provides the beginning to the organization. The structure of the organization

represents a formal pattern of interaction and coordination between various people and

departments that guide the activities towards the objectives of the organization. The structure

of the organization affects managerial effectiveness by coordinating internal activities with

the external environment.

SYSTEM:

Systems refers to procedures and processes such as management information systems,

performance evaluation systems, technology systems, manufacturing processes, control

processes, etc.



STRATEGY:

The development of strategies in the company is an important variable that affects

management excellence. The strategy means the determination of objectives and the

allocation of resources to achieve the goals and objectives through continuous interactions

with the environment. strategy to adopt a low cost technology to obtain a competitive

advantage in the market.

SKILL:

Skills are distinctive capabilities of a company, each and every organization has common

strengths and competencies. Increasing the skills to meet future requirements makes the

organization successful and effective.

STYLE:

Democratic leadership can be called group-centred leadership. In this leadership style,

leaders refer to their groups and take their opinion into consideration in the decision-making

process of the organization. Here Leaders encourage group discussions among members about

the problem they face and make a decision depending on their opinion. The participation of the

employees of the organization in the decision-making process is rewarded.

The exchange of ideas and opinions between employees and subordinates with the leader is

appreciated and encouraged. Leaders give more authority and freedom to their employees, who

feel their opinions are valued and given importance. This builds trust among employees and

serves as a source of job satisfaction. This improves the quality of the decision that is made after

considering the valuable opinions of the talented members of the organization. The demerit of

this leadership style is that it takes more time to reach a decision, since most of the time is

consumed while taking the opinions of the members. Therefore, it takes a long time.

STAFF



Staff represents the human resource. HR management, advancement and performance

appraisal are important areas of HR. The staff should be satisfied, young, dynamic,

innovative and creative. This pre-assume and a well-designed staffing procedure that helps in

appointing right people and most appropriate people to fulfilment of organizational goals and

objectives.

There should be proper balance between job description and job specification and people

should be placed at the right jobs at the right time which is most suitable for them, A very

much composed and designed staffing plans with approaches related to requirement,

selection and placement, training and development, compensation etc, effects the

effectiveness of an organisation. Most satisfied staff will be most effective staff. People are

part of the organization culture and there should be complete harmony between

organizational and individual goals.

SHARED VALUES

Shared values refer to subordinate goals, objectives and values commonly shared among the

employees of the organization. They represent the culture and system with specific set of

goals and direction. They result in optimum allotment of resources keeping in mind about the

values, beliefs, point of view and ambition.

An organization whose employees share common values about its objectives and plans is an

effective organization. Shared values represent organization climate, structure, culture and

dynamics. Management styles, strategy, system, skills ECT. Are largely focused by its shared

values.



1.2 INDUSTRY PROFILE

The automobile sector is one of the vast combination of formulation and coordination

integrated altogether with the blueprint, gathering, advancing, and creation of automotive. This is

considered as a notable one of the world's most imperative monetary parts by salary. The

automobile industry excludes pioneers targeted on the upstream of cars mainly from start to the

end-customer. Example for that is, automobile repair work shops and motor gas stations.

The automobile is one of the primary ventures at the overall dimension. It plays a fundamental

employment in the improvement of the overall economy because of the high livelihoods and

extended customer demands. The vehicle business develops money related improvement of the

country; thusly, it is commonly seen as an important monetary part. The vehicle business

includes different associations worked in auto manufacturing, and furthermore the ones drew in

with displaying and dissemination of vehicle things, for instance, cars, transports, vans, trucks,

cruisers, mopeds and automated bicycles. The overall vehicle industry merges a couple of broad

car creators' alliances that work agreeably suppliers at the overall dimension.

The word auto came from Greek word “autos” means self, combining the Latin word

“motives” means of development, for addressing all kind of self-powered automobile. The term

“Automotive” was suggested by Elmer Sperry.

The automobile manufacturing started in the 1860s by evolving numerous manufacturers that

initiated by making the horseless carriage. After that quite a while, the connection with U.S has

taken the world cause high end automobile production. At the end of 1929, going before the

unique debilitation, 32,026,600 automobiles were driven and used. The United States

manufacturers made around 90 percent of the vehicles. Later, the states got one vehicle for

almost 4.87 individuals each. Post Second World War, they contribute around 3/4th of total

produces. In the 1980’s, they were overpowered by JDM and a short time later transformed into

world's pioneer again in 1994. In 2006, Japan outperformed the states in advancement and held

this rank until 2009, when China took the best spot with 13.8 million units. With 19.3 million

units made in 2012, China for the most part expanded United States age, owning almost 11

million units, where the third place was furnished by Japan.



Security is an impression which recommends for secured to be from any kind of danger,

risk, hazard and purpose behind harm. In the field of automobile production, prosperity suggests

that customers, chairmen and including makers don't stand up to any damage or risk starting

from the automobile and its additional parts. Security for the vehicles themselves, proposes that

there is no threat of mischief.





TWO WHEELER INDUSTRY IN INDIA:

Motorcycle industry in India vastly developed rapidly in the nation ever from the declaration

of the process of liberalization in 1991 by the then finance minister Dr. Man Mohan Singh.

Previously, there were only a lot of bicycle models open in the country. At this moment, India

is the second greatest producer of bicycles on earth. It stays next just too Chinese and the

Japanese, the extent that the amount of bicycles made and the ideas of bicycles independently. In

the year 2005-2006, the yearly formation of bicycles in India stayed at around 7600801 units.

The pattern of owning bikes is because of an assortment of actualities unconventional to the

nation. One of the main elements is poor open transport in numerous pieces of India.

Furthermore, bikes offer a lot of comfort and versatility for the Indian family.

Bajaj auto started exchanging imported Vespa two wheelers in 1948. Then Automobile

Products of India (API) initiated creation of motorcycles in the mid 50's. Before 1958, API as

well as Royal Enfield were in the spotlight for producing motorcycles. Be that as it may, Bajaj

marked a specialized cooperation in 1960 with Piaggio of Italy to deliver Bajaj Scooters. This

arrangement lapsed in 1971.

The state of cruiser producers was the same. Before the 1980’s, lastly just only three

noteworthy cruiser makers specifically Royal Enfield, Rajdoot and Escorts. Motorcycle retail

was established to remote producers in the 1980’s. The business, paved way for a smooth ride

previously, confronted furious remote challenge. Bike organizations like the Yamaha, Honda,

and Kawasaki, set up shop in India in a joint effort with different Indian bike organizat ions.

Organizations like Escorts, Rajdoot and confronted gigantic challenge from littler 100cc

Japanese innovation motorcycle. Bikes produced by Hero Honda, one of the leading producers

of four stroke motorcycles, has achieved huge prominence.

Kinetic came out with automatic gearless with the joint venture of Honda. This development

changed to be in a brief moment surely understood with the more energetic age, especially

people who felt that it was difficult to use furnished bicycles. The introduction of bicycles made

another section for people, for instance, women and Youngsters who are not able to wind up



acquainted with driving either gear bikes or automatic bikes. Various associations, for instance,

Hero, TVS, and Kinetic Honda in like manner started collecting mopeds that exhibited colossally

understood with people who required a direct riding machine.

The adjustment in the administration's approach acquiring to contamination quality standards

and in this scenario, Kyoto understanding envisioned elimination of two stroke bikes

manufacturing. As of now there are around 10 bike makers in the nation, they being Hero, Bajaj,

Mahindra, Honda, Indus, Yamaha, TVS, Suzuki, Royal Enfield, and Kinetic.

The most recent pattern in the bike stream is presentation of electric based worked

automobiles from a scope of producers, for example, Hero. They are revived from supporting

family electric base focuses. The main weakness found was speed, and it is confined to almost 25

mph.

In the present days, the market ids full of higher technology based motorcycle. People are

more aware about the mileage of the motorcycle, some class of consumers are not even bothered

about the mileage, as they are looking forward to buy 1000cc motorbike, or as called as

superbike, having greater power. With the invention of DTSi, Bajaj turns out to be a spectator in

the bike market world.



1.3 PORTERS FIVE FORCE MODEL FOR THE INDUSTRY:

Image 1.2 Porters Five Model

THREAT OF NEW ENTRANTS (STRONG)

It is expensive and difficult for new entrants/brands to enter the auto mobile industry which is

because of the large investment required in today’s market scenario. Initially, a quite huge

investment will be required to set up the manufacturing facilities, distribution network and to

hire skilled staff. Another major difficulty is the level of competition from the brands already

existing in the market. As many new brands comes up with an innovative and different bikes in

the market the chances to capture a market share is strong . While the law does not cause any

barriers for new entrants, but the brand image and reputation are the major challenges faced new

players. Brand image is the most important competitive advantage for the existing brands in the

market. Any new brand will have to focus on engineering and quality of the product.

Getting access to raw material can be easy but then achieving economies of scale difficult for

small players. Hence the threat of new entrants in the royal Enfield is strong in nature.



BARGAINING POWER OF SUPPLIERS (HIGH)

The bargaining power of suppliers in the auto mobile industry is high as most of the players

operate in small scale. Only few of them are significant in size. The threat of forward integration

is minimum from the suppliers for the reasons discussed in the first category. These suppliers do

not have to operate as per the rules set by the brands. The suppliers hold immense share because

the raw material is available in large quantity and switching from one supplier to another

supplier is difficult for them. In this way, the bargaining power of suppliers is considerably high.

As royal Enfield operates at large scale, the resultant bargaining power of suppliers is moderate

in nature.

BARGAINING POWER OF BUYERS (MODERATE)

A large part of the buyers are the small individual buyers that buy single type of bikes.

However, there are corporations and government agencies that buy fleets of cables. Such buyers

are in a position to bargain for lower prices. Whether small or large buyers cannot easily switch

to a new brand. From the buyers point of view there are big expenses involved in switching to

another brand from the target brand. The buyers are price sensitive mostly and would switch to

another brand that offers lower prices. None of the buyers, neither big corporations nor small

buyers pose a threat of backward integration.

Based on the overview the bargaining power of buyers is moderately strong. Brands focus on

improving customer loyalty through design, quality and by offering competitive prices. This is

for Buyers in Cable Industry. Bargaining power can be high due large size of Buyers or lot of

options due to multiple suppliers etc.

THREAT OF SUBSTITUTES (WEAK)

None of the other alternatives can provide the kind of accessibility and convenience that a bike

does. So, the threat of substitutes is weakened. There is some level of threat from the substitute

products, mostly as all of them are large scale producers, where daily commuters may find it



cheaper and easier to use due to better mileage. Due to reliability and reputation of Royal

Enfield, the threat of substitutes is weak in the market.

COMPETITIVE RIVALRY IN THE INDUSTRY (STRONG)

The numbers of valued and persuading brands are low and the difficulties in exiting the industry

are very high. As per the situation of the market any brand wanting/trying to leave the market

would have to face very large losses and damage to the brand value. The level of customer

loyalty is high and while the industry is large, it has matured. This intensifies the competition or

market share. Different brands have targeted different market segments but still there is overlap

in the target market. Brands competition is based on various factors such as price, design,

quality, technology, customer safety etc. Due to larger competition and large scale industry

competition, the rivalry for royal Enfield is high.



1.4 THEORETICAL BACKGROUND:

1.4.1 MARKETING MIX:

Product:

Refers to the business offers for sale and include products ,services .product decisions

include the “quality ,features, benefits, style, design, branding , warranties, life cycles,

investments and returns.

Price:

Refers to decisions surrounding “list pricing, discount pricing ,special offer pricing ,credit

terms” total cost to customer to the product, and both monetary and psychological costs such as

the time and effort .

Place:

“ Direct or indirect channels to market, geographical distribution , territorial coverage, retail

outlet, market location, stock , and order fulfilment .“ place refers to the location where the

business carriers and distribution channels used to reach market.



Promotion:

Refers to “ the marketing communication used to make the offer known to potential

customers investigate and in order to help in making online marketing campaign.

1.4.2 IMPORTANCE OF THE TOPIC:

The research is aimed at the study of Marketing mix of Royal Enfield Motorcycle- with

specific reference to HSR Services, Banashankari , Bangalore. Royal Enfield has for some time

presently focused on the adolescent market with draw of opportunity. In any case, they have

done little to strengthen their position. Possibly publicizing efforts focused at the esteem

expressive clients would empower the brand to receive the rewards of their notable position in a

substantially more beneficial manner.

Envisioning a client's needs is as significant as responding. By the day's end, they know their

customers' tendencies. While understanding a customer's tendencies may bolster gives, you

ought to in like manner accept a gander at this as a customer organization opportunity by

changing in accordance with these inclinations, loathes and any uncommon requesting a

customer may have.

Today, a purchaser appreciates an assortment of selection of items and administrations he

wishes to buy with increasingly more number of models, highlights, sizes, shapes, hues and other

character the extension for his decision further augments. Today, all organizations are occupied

with a procedure of making a real existence time esteem and association with their clients. In this

way, the test before the advertiser is to decide the proper showcasing channels and buyer

psychographics to have a superior comprehension of the conduct parts of the objective market.

Purchasing conduct is additionally affected by other mental ideas, for example, recognition,

inspiration, and character. Knowing the effect of these ideas on purchasing conduct will help

advertisers in the age of new item thoughts and embrace customization for the center item some

extra highlights and by offering of extra administrations, all with the expectation to add to client

charm. Since customer conduct has turned into an essential piece of key promoting arranging, it



is even more important that advertisers give a great deal of weight age to shopper research

considers.

In a world loaded up with perpetual shopper decisions, such a large number of advertisers still

push out one-measure fits-all messages. Maybe a couple CRM rhythms are self-coordinated by

shoppers, which may represent commonly level or low reaction and commitment rates.

Furthermore, when everyone is a gamer used to picking characters or symbols, setting game

play levels, and settling on decisions of numerous sorts, advertisers once in a while give their

clients and prospects the choice to set inclinations for substance, channels, or rhythm. Such a

large number of securing, lead age, utilization incitement, steadfastness, or adherence projects

are sequential satisfaction practices instead of real articulations of client connections. They're

single direction avenues taking on the appearance of two-way connections.

The "R" in CRM should be progressively unmistakable in the reasoning, programming, and

foundation of advertisers. There's a hesitance to approach buyers for more data dependent on a

summed up uneasiness about protection. However, this is a phony out. More noteworthy

information yields progressively customized, important, and helpful substance, which, thusly,

gives clients more prominent esteem and a more grounded association with a brand. Many

studies has demonstrated that when purchasers see certified esteem they're prepared, willing, and

ready to share individual data. This esteem trade is the center of all CRM programs.

Correspondingly, when shoppers set inclinations and brands execute on them, investigate

recommends that commitment, buys, and consumer loyalty take off. The trap is joining

inclination as a very wanted component with a CRM engineering or condition. A brand without

an inclination focus is in part faking CRM.

Preferably, clients ought to be directed to an inclination focus right off the bat in the

relationship, when their advantage and goals are high. They ought to be requested essential

contact information and the imperative select and afterward be given a few decisions about what

sort of data or motivating forces they need, how every now and again they need them, and which

correspondence channel is ideal to contact them without irritating them.

Setting up a tendency canter requires an unassuming proportion of database course of action

and a structure to securely get and transmit the data gave. Once in a while this data can be



secured in ESP gadgets and used to light up triggers and business rules for email. You can't for

the most part make a tendency concentration aside from on the off chance that you have a

database configuration set up.

The test is the theory. Such an enormous number of clients see even inconspicuous structure

costs as "non-productive" since there is no brief return for capital invested. That view is

astigmatic. Giving customers choices and, in doing all things considered, limiting them to their

favoured brands fulfils again and again after some time. With respect to tendency, brands need to

wander up to regard as well as to suit customer tendencies.

In each business, the primary rationale is to improve the generation and just as offers of the

organization and to do all these, any organization or business needs to win the trust of its clients

and learning about their preferences and inclinations. After the season of creation, there comes a

period where the organization needs to choose what the cost of our item will be on the grounds

that it partitions the classes of the client and furthermore achieves more deals. The adjustment in

customer inclination can be a decent open door for the imprint to bring something which can't as

a revaluation in the market. For Example–When palm pops presented in the market, it was

effective due to the in vogue and smooth structure. Purchaser conduct is particularly

indispensable in structuring and moving toward advertising blend to be picked (item, value, spot,

and advancement). The item should be profitable, the cost ought to be moderate, and spot

conveyance should be concentrated and a fitting. Advancement system ought to be there.

The STP (Segmentation, Targeting, and Positioning) strategies are implemented by

understanding the behaviour of consumers towards the various brands. The items are focused on

gathering the clients having regular taste and preference lastly situated in the market. In this

manner, constructing a positive picture of the result of an organization identified with the

contenders.

The steps in process of consumer decision making are as follows:-

Need Recognition.

Information Search.

Evaluation of Alternatives.



Purchase Decisions.

Post Purchase Behaviour.

At the point when the planned item is coordinating the desires for the customer than they result

in consumer loyalty, on the off chance that the item is surpassing the desires for the client then

its outcome in client amuse.

1.5 NEED FOR THE STUDY

The need for this study is to know the consumer predisposition characters of the customers.

And understand the satisfaction level of customers in Royal Enfield motorcycle in Bangalore. To

analyse different factors influencing the customers and the customer preference for the Royal

Enfield Bike. The need to study the topic focuses on two wheeler with brand preference to Royal

Enfield bikes. The need of the examination has been accomplished recognize the class of clients

concerning inclination, the buy design and to break down the fulfilment dimension of a few

models accessible in the Royal Enfield motorcycles.

Buyer direct is concentrated to anticipate buyers' reaction in business divisions. If a firm

appreciates its customers, it ends up compelling in the business focus. The accomplishment of

any business relies upon understanding the purchaser and giving the kind of things that the

customer needs.

The client picks what to buy, when to buy and besides what not to buy. One can't push a thing

on a customer. A promoter sells what the purchaser needs. Thus, highlight is determined to

perceiving the needs of customers.



1.6 SCOPE OF THE STUDY:

● The study will bring out the processes of business that enables the business to run well

● The study is confined to Royal Enfield India two wheeler company. Its existing processes

and the change in processes that took place in the past .

● The study will point out different problems faced not only by the company but also by the

customers and how these problems will influence the change in process.

● This study will help the company to understand its problem and take decisions to bring out

necessary changes that would help to solve its problems



CHAPTER 2

METHODOLOGY

2.1 OBJECTIVES:

To study industrial profile using porters five force model

To study the company profile using Mckinsey’s 7s model

To study the marketing mix of royal Enfield , HSR services Banashankari .

DESCRIPTIVE STUDY:

Descriptive study in research is conducted for a problem that has not been studied more

clearly, intended to establish priorities, develop operational definitions and improve the final

research design. Exploratory research helps determine the best research design, data-collection

method and selection of subjects.

DATA COLLECTION:

Primary data: The primary data has been collected through personal interaction and

observation method.

Secondary data: Secondary data is one which is used by one person which is already

collected by any other person related to this research study. Ex: books, articles, records of

the company etc. In this study the published information by the Royal Enfield has been

taken from books, websites, magazines etc.



TOOLS USED:

CAUSE AND EFFECT ANALYSIS OR FISH BONE ANALYSIS :

Fish bone analysis is a visualisation tool used for classifying potential causes of problem

in order to indentify the root cause.

In 1960 Ishikawa diagrams were popularised. Hence its came into existent and in large

many organization started to use fish bone diagram to know cause and effects regarding to their

organization.

2.2 LIMITATION OF THE STUDY:

The time period taken for this project is less and thus there are chances that some

information has been left out ,however care is taken to include all the information.

Study conducted is related to events in the past; hence it may not be really applicable to

present conditions and situations.

Most of the data is from secondary sources provided to me in Bangalore office. A visit to

Chennai factory could have provided better insights , but due to paucity of time, the same

could not be done.



CHAPTER 3

SWOC ANALYSIS

ANALYSIS OF THE COMPANY USING SWOC FRAME WORK

SWOC Analysis Strength Weakness Opportunities and challenges Analysis are a framework for

identifying and analyzing internal and external factors that have an impact on the organization.

Strengths and weaknesses are seen as internal factors. Opportunities and challenges are seen as

external factors.

The goals of SWOC analysis

• To achieve a clear common purpose.

• Organizing important factors.

• Identify better decision-making processes.

STRENGTH

BRAND NAME

BRAND LOYALTY

SUPERIOR MANAGEMENT

QUALITY

WEAKNESSES

MARKETING SKILLS

PRODUCT INNOVATION

MILEAGE

HIGH PRICE

OPPORTUNITIES

ENCOURAGE SALES WITH

ADVERTISEMENT

LOW CC BIKES

CHANGING CUSTOMER NEEDS AND

TASTE

BETTER FINANCIAL SCHEMES 39

CHALLENGES

ENTRANCE OF FOREIGN PLAYERS

EXISTING PLAYERS

RULES AND REGULATIONS



STRENGTH

Brand name – Royal Enfield is a known for its brand name in India. As the teenagers are

motivated to buy it as its being a trend in the market.

Brand loyalty- Customers of royal enfield are being attracted to it because of its variety

of products & its looks.

Superior Management – the higher management is the most important segment in the

organisation to make critical decisions & organize the business to work in smooth way

with efficiency & ethics.

Quality performance – ensuring the best quality of product with proper servicing

facilities has been the main moto of the firm.

WEAKNESSES

Poor Marketing skills - Royal Enfield has failed to promote/advertise its products in an

effective way. It has failed to exercise the necessary changes to be adopted in promoting

the products & following the marketing strategy of using social media marketing.

Limited Product innovation - Royal Enfield bikes have very negligible Innovation. There

is no much changes or innovation involved in product line.

Low mileage and heavy bikes – mileage of Royal Enfield bikes is lower compared to its

competitors & even the weight of bike is of a major concern. Which results in handling of

bike in crowed areas.

High price- The price range of Royal Enfield is bit higher compared to its competitors.



OPPORTUNITIES

Encourage sales with advertisement - If Royal Enfield uses some of its ideas in marketing

the bike through advertisement in print media television and online then the sales will

definitely increase.

Low cc bikes- Royal Enfield if worked on its R&D and develop a lower cc bike which is

around 150 then it would definitely be successful in the market because of its brand name

and brand positioning.

Changing customer needs and taste- To survive in this competitive market it is necessary

to come with new products as the customers are been availed with huge variety of

products. Innovation is the only way to attract the customer.

Offer Better Financial Schemes- Providing some financial guidance to its customers (in

case of requirement).

CHALLENGES

Entrance of foreign players- Entrance of foreign players in the market effects the sales of

the company, as the foreign players are some huge giants in the industry they might

dissolve the customer base of the Indian market of Indian players.

Existing players- The existing players in the market are giving tough competition to the

Royal Enfield motorcycles. Bajaj Auto epically has launched Bajaj Dominor & Bajaj

Avenger which are tough competitors to the Royal Enfield Motorcycles.

Rules and Regulations- The recent norms announced by the government like BSIV which

will have restrictions on the sound produced by the Royal Enfield Motorcycles which

might be result in decreasing the sales of the firm. The BSVI norms will be applicable

from the year 2020.



CHAPTER 4

ANALYSIS AND DISCUSSION

(OUTCOMES OF THE STUDY)

4.1 MARKETING MIX OF ROYAL ENFIELD:

The marketing mix refers to the set of actions, that a company uses to promote its brand or

product in the market. The 4ps make up a typical marketing mix- price, product, promotion , and

place.

Place :

Royal Enfield always keeps their customer first and knows the importance of marketing their

bikes available to the customer. The staffs of royal Enfield are highly skilled with not only sales

but also information about the bikes, data collection, and finance insurance. Royal Enfield has

digital marketing executives they contact each customer through calls. Royal Enfield is located



in the city Bangalore with different locations that customers can easily visit the showroom to buy

the bikes .

Product:

Royal Enfield their customers with both tangible and intangible products ranging from bikes to

warranties. They have more than 10 bike models at royal Enfield.

Price:

There three different types of pricing techniques used in the royal Enfield .

They are,

• Market based pricing

• Cost to market

• Price to market

These are the better way to price a used vehicle. Buyers have a large number of

tools to see bike prices across the city.

Promotion:

Royal Enfield have several promotional policies to market their product successfully in the

consumer market royal Enfield has launched innovative advertisement campaigns with the help

of print media and electronic media. The advertisement for viewed viva news papers and

television . Royal Enfield started awareness campaigns in social media like YouTube , Twitter ,

Facebook.



Product Price in rupees

Bullet 350 1.18 Lakhs onwards.

Bullet 500 1.74 Lakh onwards.

Classic 350 1.39 Lakh onwards

Classic 500 1.79 Lakh onwards

Himalayan 1.79 Lakh onwards

Interceptor 650 2.51 Lakh onwards

Continental GT 650 2.66 Lakh onwards



Thunder Bird 350 1.51 Lakh onwards

Thunder Bird 500 1.91 Lakh onwards

Thunder Bird 350X 1.64 Lakh onwards

Thunder Bird 500X 1.99 Lakh onwards

Bullet Trials 350 1.63 Lakh onwards

Bullet Trial 500 2.07 Lakh onwards



4.2 RESEARCH DESIGN:

A research design is the set of methods and procedures used in collecting and analysing

measures of the variables specified in the problem research.

4.3 STATEMENT OF THE PROBLEM IN MARKETING MIX:

CAUSE AND EFFECT ANALYSIS OR FISH BONE ANALYSIS :

COMPETITION:

There was no much competition for Royal Enfield before. This company has a unique type of

bike and other companies couldn’t compete with them .Over the years after liberalization many

foreign companies started selling bikes in India. So this proved to be a big problem for Royal

Enfield because the competitors selling similar kinds of bikes and hence the sales of Royal

Enfield started to deteriorate. Companies like JAVA are producing bike at a similar price

structure which is also a challenge.



PRICING:

With regards to pricing there are many companies which provide competition to Royal

Enfield.

Exp: companies like JAWA they provide products which same features as Royal Enfield with

same price.

PROMOTION:

From the promotion point of view Royal Enfield lack to get best brand Ambassador .

And also not willing to signing any celebrities for the new products promotion.

There are less advertisement compare to the other companies.

PHYSICAL EVIDENCE:

Products delivery time is more in Royal Enfield compare to its competitors.

PEOPLE:

Maintaining cost: It is relatively higher for Royal Enfield bikes than other companies.

Ownership cost: Even servicing cost is little bit higher than other bike companies so it would be

slightly costlier for middle class people.

PLACE: Royal Enfield products mostly available only in India. but its competitors has more

branches in foreign countries than Royal Enfield.

GST: GST was introduced on 1st July 2017 where the tax rate was 28 % for bikes. That is the

CGST 14% and SGST 14% respectively. This is also a minor reason for the drop in sales growth

of Royal Enfield bikes.



4.4 FINDINGS OF THE STUDY:

Choosing appropriate production technique helped the company in achieving the

company’s goals as well as success in its marketing mix.

The company can still use these processes to solve its problems. If not that it can use this

as a reference to make changes in the company.

The new bike industry is experiencing a drop-in sale due to government policies as GST,

5-year insurance and high investment.

The aggressive sales strategies and price discounts persuade people to sell their bikes.

With frequent release of new bike models in the market by different competitive brands,

results in the esteem need forcing people to change from their existing bikes.

Owning a bike is considered a status symbol with limited resources at hand a used bike

can satisfy this esteem need of the population.

4.5 SUGGETIONS:

PLACE:

Royal Enfield usually have their shop mostly in cities . but they haven’t establish in their

branches in town areas this course the problem in reaching to rural areas.

Royal Enfield have to focus on the right places for example crowed place, famous street

etc. While opening the branch in city / town.

PRODUCT:

• They can provide free services for first couple of time to attract the more customers



• To attract more customers royal Enfield can give some gifts for each services for first

five year the gifts can be in the form of cup, bags or jackets etc. With royal Enfield logo

on it this helps in advertisement of royal Enfield .

PRICE:

• To beat its competitors in the market royal Enfield can add more features into its

products for same price/reasonable price .

• They provide services with reasonable charges rather than keeping at current high price.

PROMOTION:

• They can use celebrity ,famous personalities as a brand ambassador of royal Enfield.

• They can focus more on the advertisement section and can make correct plans to

expand its advertisement and marketing region .



CHAPTER 5

CONCLUSION

5.1 EXPERIENCE:

It was really amazing experience working in royal Enfield . this office consists of

friendly working environment with professional workers. Management and colleague really

helpful and eager to share the information this helped me to gain lots of knowledge on its

working process .

Over all its a great experience I would like to work for royal Enfield into future.

5.2 LEARNINGS:

From learning point of view I got to know about marketing mix. I also learnt about how the

sales and sales team works .how price structures are made and promotion strategies , product

mix.

I have learnt the swot analysis of the company. And the areas where it needs improvement within

the company. From this internship I got to learn about industry working culture, employee

etiquettes .



5.3 CONCLUSION:

The study has helped to understand the Marketing mix as a whole towards the Royal

Enfield Motorcycle- with reference to HSR Service Bangalore.

Since the adoption of marketing mix, the company has managed to flourish and is

continuing to do so. The key to its success was adaption of marketing mix .But now the market

has become even more dynamic with much more intense competition .The brand did deal with

few of its problem but is yet to overcome problems. Now the question is how the company will

continue to be the market leader in its segment? Will they continue with the same old strategy of

marketing mix they used in the year 2000 or they will come with something that would help

them in reaching global customers in solving the current problems with respect to their

marketing mix strategies. Making changes was the only option they had back in 2000. But the

dilemma is if any other company applies the same strategy will it work for them as it worked for

Royal Enfield.


RV Institute of Management

BIBILIOGRAPHY:

Books

Predictably Irrational by Dan Ariely and Influence –The psychology of persuasion by

Robert B.Cialdini Predictably Irrational by Dan Ariely.

Influence –The psychology of persuasion by Robert B. Cialdini.

Customers for life by Carl Sewell.

Buyology by Martin Lindstrom

Websites

www.royalenfield.com

www.bikewale.com

www.motorcyclesofindia.com

http://www.royalenfield.com/

http://www.bikewale.com/

http://www.motorcyclesofindia.com/


RV Institute of Management

ANNEXURES

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