Market Research.docx

MARKETING RESEARCH REPORT

ROYAL ENFIELD BY- PRIYANKA SHAHI (18609033) VARUN JAIN (18609012)

CONTENT Topics

Page no.

 MARKETING RESARCH DEFINITION  HISTORY OF ROYAL ENFIELD  ROYAL ENFIELD PRODUCTS  MARKETING MIX OF ROYAL ENFIELD  QUESTIONAIRE  DATA ANALYSIS  DEMOGRAPHIC REPRESENTATION  CONCLUSION  LIMITATION  BIBLIOGRAPHY

2

3 4-6 7 8-10 11-14 15 16-23 24 25 26

MARKETING RESARCH

Market research is any organized effort to gather

information about target markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets. Market research is one of the main factors used in maintaining competitiveness over competitors. Market research provides important information to identify and analyze the market need, market size and competition. Market-research techniques encompass both qualitative techniques such as focus groups, indepth interviews, and ethnography, as well as quantitative techniques such as customer surveys, and analysis of secondary data. Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making.

3

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

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

BETWEEN THE WARS At the time of the outbreak of WW I Royal Enfield supplied consignments of their 6 HP sidecar Outfit motorcycles with Stretchers to the Crown. This same motorcycle also came with a Vickers machine Gun sidecar attachment which could also be turned skywards and used against low flying aircraft. Royal Enfield supplied large numbers of motorcycles to the British War Department and also won a motorcycle contract for the Imperial Russian Government.

4

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 licence in erstwhile madras (Now called Chennai). As per their agreement Madras Motors owned the majority (over 50%) of shares in the company. In 1957 tooling equipment was also sold to Enfield India so that they could manufacture components and start full-fledged production. The Enfield Bullet dominated the Indian highways and with each passing year its popularity kept rising

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

INFRASTRUCTURE AND TECHNOLOGY To manufacture quality bikes that are well known worldwide for their reliability and toughness state-of-the-art infrastructure is required, and that is just what Royal Enfield has done at their 5

Chennai manufacturing facility. An active in -house Research & Development wing is constantly at work to meet changing customer preferences and the challenges of Indian and International environment standards. When introducing a new product, this team undertakes all related planning which includes a rigorous customer contact program, design, concurrent engineering and testing processes. The Motorcycle Design team at Royal Enfield is well equipped with high-end CAD/CAM workstations and the latest modelling software. Top -notch designers work continuously to come up with innovative bikes designs to meet the market’s expectations. Continuous rigorous testing of motorcycles and components is carried out in the Product Development testing lab to come up with more improvements in enhancing the customer experience.

MANUFACTURING Royal Enfield's manufacturing operations go through a series of modernization and improvement efforts, with a number of automated processes. The Company has put in place modern manufacturing practices like Cellular layouts, Statistical proce ss controls and Flexible manufacturing systems. The Chennai manufacturing facility has received the ISO 9001 certification and for managing its operations in a clean and safe environment, it has obtained the ISO 14001-quality certification and kaizens are implemented to ensure the quality levels are kept at an ever rising pace.

MARKETING NETWORK You can feel the pulse of your customers, only if you get close to them. This thought process has driven Royal Enfield to set up has a wide network of 11 Brand Stores, 250 dealers in all major cities and towns, and over 200 Authorised Service Centres. The Company also exports motorcycles to 42 countries like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany, Argentina and many other countries through 40 importers and over 300 dealers across the globe.

6

PRODUCTS OF ROYAL ENFIELD

          

Classic 350 Bullet 350 Thunderbird 350 Bullet ES (Electra) Classic 500 Himalayan Thunderbird 500 Bullet 500 Thunderbird X Continental GT Interceptor

7

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

Bullet Electra 5S Bullet 350 Bullet Machismo 500

Retro Street      

Classic 500 Classic Battle Green Classic Chrome Classic Squadron Blue Classic 350 Classic Desert Storm

Cruiser  

Thunderbird 500 Thunderbird 300

Café Racer 

Continental GT

Royal Enfield Himalayan 8

Place in the Marketing Mix Of Royal Enfield : Royal Enfield is an Indian company with its headquarters base at Chennai in Tamil Nadu. It has spread its product presence to India as well as several international markets in more than fifty countries like Spain, Switzerland, Singapore, Netherlands, Russia, Malaysia, Korea, Canada, Brazil, France, Germany, Italy, United Kingdom, Japan, Argentina, Australia and the United States. At its onset company imported kits for 350cc bikes from the United Kingdom and assembled them in its plant at Chennai. A new manufacturing plant was opened at Oragadam in Chennai by the year 2013 and its factory located at Tiruvottiyur became a secondary production plant that continued with its manufacturing of several models and engines. In the year 2015 company established a dealership and its headquarters for the North American division at Milwaukee in Wisconsin. It started its retail operations in Indonesia in the year 2015, August. Royal Enfield has a strong distribution network that includes services of dealers and stockists so that it reaches consumer markets easily. Its channel in India includes 394 dealership outlets spread over every Indian state and three Union territories.

Price in the Marketing Mix Of Royal Enfield : Royal Enfield has the distinction of being an iconic company as it is one of the oldest in the field of two-wheelers. It belongs to the luxury segment and has become a status symbol to motorcycle lovers. Royal Enfield has targeted bike adventurers and youth’s belonging to a middle-aged group as its target customers that believe in quality over pricing at any given time. It has adopted a premium pricing policy for its high-quality products. The company offers a powerful and stylish product with an established and high-profile brand name and hence its target

9

customers do not hesitate in making a purchase irrespective of high prices.

Promotions in the Marketing Mix Of Royal Enfield : Royal Enfield has the distinction of being the first two-wheeler manufacturing company to obtain WVTA certificate for meeting norms and standards set up by European Community. It has adopted several promotional policies to market its products successfully in the consumer market. The company has launched innovative ad campaigns with help of electronic and print media. Its ads are viewed via television, magazines, newspapers and billboards. Royal Enfield has also launched brand awareness campaigns at social media portals like Facebook, Twitter and YouTube. It takes part in several shows to increase its brand visibility. It revealed its custom bikes in Biarritz, France at Wheels and Waves custom bike show. Royal Enfield has been a recipient of several accolades and awards in recognition of its works. It won Business Standard Best Company of the Year 2015 and has even been hailed by previous President Barack Obama as one of the best bikes he had come across. One of its popular taglines is Made like a gun, goes like a bullet.

10

QUESTIONNAIRE RESPONDENT INFORMATION NAME: 1. AGE:

2. GENDER:

MALE

FEMALE

3. OCCUPATION: Professional Student

Government service Self Employed

Other

4. ANNUAL INCOME: Less than 1,20,000

1,20,000 – 3,60,000

3,60,000 – 7,20,000

Above 7,20,000

5. Which model do you prefer or have? Bullet 500

ThunderBird

Bullet Electra

Bullet 350

Classic 350/500

Other 11

Himalyan

6. How did you purchase the bike? Cash

Loan

7. Did you consider other motorcycles while buying the R.E bike? YES

NO

* If yes which bike did you compare with? Bike

CC

8. Please specify your source of awareness of R.E while buying your bike? Newspaper Magazine Friends

Road shows TV Adds

Website Others

Showroom

9. Frequency of breakdown of your bike? Very Often

Rarely

Not at all

10. How about the availability of spare parts? Readily Available

Don’t get them readily

Don’t have good pare supply

Major headache

12

11. Which place did you prefer to purchase your R.E bike? Showroom

Direct Second Hand

Used Vehicle Dealership * Are you satisfied purchasing there? Yes

No

12. Any major problem after buying R.E bike? High Maintenance

No Problem

Poor After Sale Service

High Cost

Noisy

Low Mileage

13. Are you satisfied with quality of bike? Yes

Can be improved

14. How many stars for R.E bikes? Good

Poor

Excellent

13

No

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

Poor After Sale Service

High Price

Poor Mileage

Poor Promotion

Noisy Vehicles

16. Where do you service your bike? Showroom

Nearby Garage

Self Service

ANY SUGGESTIONS

14

Data Analysis OCCUPATION     

STUDENT GOVERNMENT SERVICE EX- SERVICEMEN PROFESSIONAL SELF EMPLOYED

45% 3% 3% 31% 18%

GENDER  MALE  FEMALE

92% 8%

ANNUAL INCOME    

Less than 1,20,000 1,20,000 – 3,59,999 3,60,000 – 7,19,999 More than 7,20,000

53% 13% 18% 16%

BIKE OWNERSHIP  BULLET RIDERS  NON BULLET RIDER

50% 50%

AGE    

20-24 25-29 30-34 ABOVE 35

40% 26% 18% 16%

15

Demographic Representation Of findings

16

17

18

19

20

21

22

23

CONCLUSION The following are the Conclusions from the Data Analysis: 1. The buying behaviour 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, 20-35 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.

Based on our findings, we can make the following recommendations to Royal Enfield: 1. Marketing Communication should focus on satisfying the needs for Respect, Power and Comfort. 2. A non-flamboyant well-built brand ambassador may be chosen to represent the Brand 3. Television Commercial spots are more remembered than Print Advertisements even when they are over 6 years old.

24

LIMITATIONS Despite best efforts, certain important facets of this study remained uncovered. Some of them are as follows: 1. A sample of 19 respondents is not representative of the attitudes of more than 10,000active Bullet riders across the country. 2. Enfield exports slightly modified motorcycles to 13 nations. No feedback regarding those models was taken. 3. Important factors like Safety were never truly looked into as most riders considered this to be a hygiene factor across all motorcycles.

The study was limited in scope and resources and as mentioned earlier, the data was only are presentative of the kind of data that would need to be analyzed if the study is scaled to a bigger population.

25

BIBLIOGRAPHY 1. http://www.royalenfield.com/ 2. Nargundkar, R. Marketing Research,3rd Edition 3. Schiffman, L G. and Kanuk, L L. ,Consumer Behavior ,8th Edition 4. Beri, G C., Business Statistics,2nd Edition 5. http://www.eicherworld.com/ 6. http://www.wikipedia.org 7. http://www.team-bhp.com 8. August 2009, Bike India, Vol. 5, Issue 001

26