ROYAL ENFIELD

Introduction
Royal Enfield India was set up in 1955 when it started receiving 350cc bikes in kits from the UK and assembling them in Chennai, India. But, eventually the entire bike was manufactured in India and a couple of years later the Company started manufacturing the 500cc Bullet. By its sheer power, un matched stability, superior riding comfort and rugged good looks, the Bullet dominated and continues to dominate the Indian roads. It is the dream choice of every motorcyclist in India with even the Indian Army and Police endorsing the Bike. In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, aRs.10 billion conglomerate and later merged with Eicher Group in 1994. 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 Motor cycles. Since then, the Company has made considerable investments in modernizing its manufacturing technology and systems and in 1996, when the Government decided to impose stringent norms for emission, Royal Enfield was the first motorcycle manufacturer to comply. Royal Enfield is amongst the first few Indian companies to obtain the WVTA (Whole Vehicle Type Approval) for meeting the European Community norms. To feel the pulse of the customers, Royal Enfield has set up a wide network of 13marketing offices, 223 dealers in all major cities and towns, 25 spare parts distributors and stockists and 150 Authorized Service Centers. The Company alsoexports motorcycles to over 30 countries like the USA, Japan, Bahrain, UK, Germany and many European countries through 5 international offices, 25 importers and over200 dealers across the globe.Amongst all the two-wheelers sold in India, no Indian brand commands as much respect as the Royal Enfield. With a rich heritage and a multi-continental history behind it, this brand today represents the aspirations of the Indian biker to ride a world-class vehicle. One of the only Indian brands to be exported to 14 countries across the globe, the Royal Enfield brand is a true story of an organization managing enormous amount of dynamism in the market, and rivalling a new set of competitors every year. With a sale of 7 lakh 2-wheelers every year, the Indian 2-wheeler industry has to keep up with the changing tastes of the customers and every participating corporate is therefore hard pressed to deliver year on year.

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History of The Company: Hunt End, England was a village of several small mills manufacturing needles and fish-hooks. It was here in 1851 that George Townsend put up his needlemaking mill, which he named Givry Works. But it wasnt until his passing away that his son, George Jr. and his half-brother brought into Givry Works one of the first 'boneshakers' a crude cycle. It had a backbone of iron, with wooden wheels, iron tyres and pedals of triangular pieces of wood! Though the bike was a source of some amusement, George and his team felt they could easily improve on it. The earliest modern safety bicycle with two wheels of equal size had appeared in about 1880. All manufacturers were trying their hand at this new venture. So was George Townsend Jr. By luck, he chanced upon an invention in his neighbourhood a saddle that only used one length of wire in the two springs and in the framework. This was adopted, patented and marketed as the 'Townsend Cyclists Saddle & Spring'. He had entered the bicycle parts trade! From bicycle parts, Townsend slowly moved on to producing bicycles himself. He was also supplying a wide range of parts to other manufacturers Givry Works was growing rapidly. Over the next three years he developed his own range of over two-dozen machines. Each machine, known locally as the 'Townsend cycle' was reputed for its sturdy frame, a character that all Enfield bikes would 1891A Little Trouble Townsend got himself into a bit of financial trouble in about1890 and called in some financiers from Birmingham. Unfortunately, they didnt quite see eye to eye. So Townsend parted ways with the financiers leaving thecompany to them. The financiers then brought in Albert Eadie and R.W. Smith. They took control of Townsends in November 1891. The following year the firm was rechristened The Eadie Manufacturing Company Limited. Soon after, Albert Eadie got a lucrative contract to supply precision rifle parts to the Royal Small Arms Factory in Enfield, Middlesex. To celebrate the contract, Eadie and Smith decided to call the first new design of

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bicycle, the Enfield It would be interesting to note here that motorcycling was thought to be a temporary enthusiasm that would soon fade out! A brief spin on a motorbike then took several hours of preparations - tuning the tiny watercooled engine, getting the tyres pumped, the gears oiled and a supply of spare parts packed. In 1909, Royal Enfield took the biking world by surprise. At the motorcycle show that year, they displayed a small 2 1/4 hp V twin-engine machine built in the Swiss tradition, which ran very well. A slightly larger model was developed in 1911. A 2 3/4 hp, with all chain drive incorporating the well-known Enfield two-speed gear. This model stood up until 1914. THE ROYAL ENFIELD BIKES (1911 - 1920) 1911 Enfield and the War The First World War began in 1914. Royal Enfield was called on to supply motorcycles to the British War Department and even awarded a contract to build bikes for the Imperial Russian Government during the same period. The machine gun combination and the 6hp stretcher carrying outfit were some of the models produced for the war purpose. Enfield started using its own engines - a 225cc two-stroke single and a 425cc V-twin about this time. Post-war, it produced a larger 976cc twin and continued to produce the two-speed 225L until 1929. In 1917, the officers of the Womens Police Force were issued with a 2 1/4 RE 2 stroke. Interestingly, the models of this period featured 600cc, inlet-over-exhaust, closed valve gear, hand-operated oil pump, two-speed countershaft gearbox and chain final drive. In the 1913-1914 Enfield V-Twin the lubricating oil was contained in a glass tank attached to the frame tube that ran from the seat to the rear of the engine. This worked perfectly and also had the added advantage of providing an instant visual check of oil levels. The 1915 make 675cc in-line 3 cylinder 2-stroke prototype was the worlds first with this configuration and engine type. THE INTERWAR YEARS (1921 - 1930) 1924 The First Four-stroke The interwar year was a period when the sidecar reached its zenith. In July 1925, the Royal Enfield V-Twin-engine Dairymans Outfit took part in the ACU Six Days Trial for Commercial Sidecars and obtained a Special Certificate of Merit for completing an arduous course

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without loss of marks. The year 1924 saw the launch of the first Enfield fourstroke 350cc single using a JAP engine. 1928 The Depression In 1928, Royal Enfield adopted saddle tanks and centre spring girder front forks one of the first companies to do so. The bikes now with a modern appearance and comprehensive range, meant continuous sales even during the dark days of depression in Great Britain towards the end of 1930. In 1927 Royal Enfield produced a 488cc with a four-speed gearbox, a new 225cc side-valve bike in 1928, and a four-stroke single in 1931. Several machines were produced in the next decade, from a tiny two-stroke 146cc Cycar to an 1140cc V-twin in 1937. Can you even imagine that Royal Enfields range for 1930 consisted of 13 models! ESTABLISHING BULLET (1931 - 1940) 1933 The Bullet Arrives In 1931 a four-valve, single-cylinder was introduced, and christened 'Bullet' in 1932. It had an inclined engine and an exposed valve gear. It was then that the first use was made of the now famous Bullet name. Longer stroke, four-valve head exposed valves and heavily finned crankcase were the features that ran from 1932 until the end of 1934. 1940 The Second World War The most well-known offering for the Second World War was no doubt the Flying Flea. Also known as the Airborne, this lightweight 125cc bike was capable of being dropped by parachute with airborne troupes. The Flea was fitted into a steel tubular cage called the Bird Cage, which had a parachute attached to it. The cage aided in packing turning handlebars easily. The Enfield Cycle Company was called upon by the British authorities to also manufacture a variety of special instruments and apparatus to use against enemy forces. So it was not bikes alone during the war years. POST WAR BULLETS (1941 - 1950) 1948 Bigger and Better The 1939 Bullet 350 kick-started the post-war models. Theyused two rocker boxes for thefirst time. This enabled better gas flow and consequently higher volumetric efficiency. Royal Enfields own designed and manufactured telescopic front fork placed the Redditch marquee at the very forefront of motorcycle design. The biggest advancement introduced by the new Bullet was its swinging arm rear suspension system and hydraulic damper units themselves. In 1947 Enfield

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made a J2 - the first model with a telescopic front end, followed in 1948 by a 500cc twin (Enfield's 25bhp answer to the Triumph Speed Twin), which stayed in production until 1958. 1949 The Indian Debut In 1949, the 350cc Bullet was launched in India, when Madras Motors won an order from the Indian Army for the supply of motorcycles. It was the beginning of the reign of the Bullet in the subcontinent. The Madras Motor Company started off by receiving the Bullet in kits and simply assembling them. Then they began making the frames. After this Enfield started sending the engine in parts to be assembled in India. Eventually they were also manufacturing the engines, which meant that they were making the complete bike. For the next thirty years, the design of their bike remained unchanged! In 1950, several models were introduced: the 650cc Meteor twin; a 250cc Clipper; a short stroke 250cc Crusader; 250cc Trials; Super 5; Continental; 500 Sports Twin; Super Meteor; Constellation and the Interceptor. A TALE OF TWO CITIES (1951 - 1960) 1951 In the UK Never before in British automobile history had so much been done in a single decade, not just by Royal Enfield, but the every other marque of the time. All new engines, all new configurations, new paint schemes, new capacity classes the motorcyclist had never had such a wide choice ever before. The 1950s saw the market open up both ways, downwards for smaller capacity, light and maneuverable machines, and upwards for larger capacity, high powered and reliable motorcycles. The Royal Enfield showrooms in the UK saw everything from 125cc two strokes to the mighty 700cc Meteor. 1955 Meanwhile in Madras The Indian Army, the sole reason why the Bullet was brought to India in the first place, insisted that they would continue doing business with Madras Motors only if the Bullet was produced indigenously. The Enfield India Bullet of the late fifties was quite a different motorcycle from the one we are used to today. Using the famed Lucas Magdyno ignition system, the 1955 Bullet was almost a clone of the 52 Redditch Bullet. The frame, electrical tin ware and rolling chassis, however, were to undergo

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many changes over the next ten years, with the Bullet slowly evolving into the familiar form we know and love today. 1961 Back in the UK In 1960, the badge arrangement with Indian (Of America) had ended, so Enfields were no longer sold under the Indian marquee (Royal Enfield rival, British AMC company, acquired the Indian Sales Corp. in 1959). However, in 1961, Eddie Mulder won the Big Bear Enduro on an Enfield, which gave the company a new foothold in the U.S. under its own name and started a new marketing of the product. Models available in the U.S. that year included a 700cc twin and six street scramblers, ranging from the 250cc Hornet to the 500cc Fury (essentially the single cylinder Bullet) to the 700cc Interceptor. Elliot Shulz also dominated the half-mile dirt track in Los Angeles on an Enfield that year. Enfields won 31 out of 39 races in 1961 and had several spectacular victoriesin 1964. Royal Enfield had arrived on The Continent! 1963 But back home in MadrasBy 1970, Enfield India was a company established in its own right, and with a production line going full steam, the need for collaboration with Enfield of the UK and Villiers of the UK was no longer seen. But the Bullet flew true and strong. A number of changes had already been made to the tinware on the Bullet. Mudgaurd design took on different forms, taking into account the wet, slushy and messy road conditions during the Indian monsoon. The Magdyno also gave way to the alternator Delco ignition system. And front and rear hubs were designed to provide more efficient cooling for Indian conditions, and thus improve braking performance. ENFIELD BECOMES ROYAL ENFIELD(1991 - 2000) 1990 Heavy Fuel The 1990's saw many revolutionary models from the company. The Taurus Diesel was the first productionised Diesel motorcycle in the world. 1993 Bullet 500 The Bullet 500 was launched in June this year. It went on to become the most coveted model of the brand. 1994 Eicher acquires Enfield In March the ailing company got a new lease of life when Eicher group acquired Enfield India Company. The company name changed to Royal Enfield Motors Limited. ROYAL ENFIELD (2001 - 2010)

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2001 The Dare Devils, the motorcycle display team of the Corps of Signals, Jabalpur forms a Human Pyramid of 201 men on 10 Enfield 350cc bikes and rides a dis 2002 The Bullet 500 was launched in June this year. It went on to become the most c oveted model of the brand. In March the ailing company got a new lease of life when Eicher group acquired Enfield India Company. The company name changed to Royal Enfield Motors Limited. distance of more than 200 meters. Indias first Cruiser The THUNDERBIRD- BBC Wheels awards it The Best Cruiser 2002 title. The Bullet Machismo enters commercial production. Dan Holmes and Johnny Szoldrak won the National Road Rac Championship (60s Class) on a Bullet. tance - is launched. Race The first RIDER MANIA get together is held in Goa. REDS are formed in Pune. The Bullet enters the Automotive Hall of Pride at the ICICI Overdrive awards. 1000 Riders descend on Redditch for the Royal Enfi Club 25th Anniversary. Royal Enfield is one of the top ten 125 The 2004 Bullet Electra is launched. The retro styled Bullet Machismo is r AutoC The Bullet Electra International w launched in the UK. 34 men ride simultaneously on a Bullet, setting a new world record. 125-500 cc brands in UK. Rated No.1 Cruiser in TNS Auto Car survey. With a lean-burn engine is Royal Enfield India Celebrates 50 glorious years of motorcycling and unveils a blueprint for the future. The 2005 Bullet Electra features a revolutionary 5 side gear shift that makes the marquee more accessible to motorcyclists. The Legend rides on Enfield Owners ated 5Speed left

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Royal Enfield develops a fully integrated Twin Spark, 5 increase in performance and efficiency. The new engine will power all domestic and International models from 2007 onwards. Royal Enfield launches the all new limited edition Machismo 500LB with customized accessories As recently as January 2009, Royal Enfield showcased the new EFI, Euro III compliant 500cc UCE powered Bullet Classic at the world charm of the Bullet while running it on cutting edge technology. 2013 model

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Swot Analysis
Strength Oldest motorcycle brand in the world. Excellent brand positioning and branding High performance and comfort. Size and scale of parent company Effective Advertising Capability Emphasis on R and D Market distribution channel weakness Weight of the motor cycle can be an issue for few customers. Mileage of high cc bikes is an issue

Opportunity Two-wheeler segment is one of the most growing industry Export of bikes is limited i.e. untapped international markets Threats Strong competition from Indian as well as international brands Dependence on government policies and rising fuel prices Better public transport will affect two-wheeler sales Competition Competitors Bajaj Auto Hero Motor Corp (Hero Honda TVS

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Suzuki Harley Davidson Yamaha

Porter five force model

Rivalry between Established Competitors For most industries, the major determinant of the overall state of competition and the general level of profitability is competition among the firms within the industry. In some industries, firms compete aggressively sometimes to the extent that prices are pushed below the level of costs and industry-wide losses are incurred. In others, price competition is muted and rivalry focuses on advertising, innovation, and other non price dimensions. Six factors play an important role in determining the nature and intensity of competition between established firms: concentration, the diversity of competitors, product differentiation, excess capacity, exit barriers, and cost conditions. Threat of Entry If an industry earns a return on capital in excess of its cost of capital, that industry acts as a magnet to firms outside the industry. Unless the entry of new firms is barred, the rate of profit will fall toward its competitive level. The threat of entry rather than actual entry may be sufficient to ensure that established firms constrain their prices to the competitive level. Economies of Scale Since Indian automobile market is of order $ 350 billion, the economies of scale are very high. Thus, threat of new entrants is low. Product Differences Since there is hardly any difference in the offerings of the various providers, so product differentiation is low. So threat of new entrants is high. Brand Identity Since there is no big Retailer like Amazon.com or Wal-Mart in India. So threat of new entrants is high.

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Government Policy Since the Government Policy has been quite restrictive till now with respect to the Retail market & FDI, so threat of new entrants is low. Capital Requirements The capital requirements for entering in the automobile sector are substantially high( high fixed cost and cost of infrastructure), so only big names can think of venturing into this area So, in that respect threat of new entrants is low. Access to distribution Since in India there is no well established distribution network. So threat of new entrants is low. Bargaining Power of Buyers The firms in an industry operate in two types of markets: in the markets for inputs and the markets for outputs. In input markets firms purchase raw materials, components, and financial and labor services. In the markets for outputs firms sell their goods and services to customers (who may be distributors, consumers, or other manufacturers). In both markets the transactions create value for both buyers and sellers. How this value is shared between them in terms of profitability depends on their relative economic power. The strength of buying power that firms face from their customers depends on two sets of factors: buyers price sensitivity and relative bargaining power. Product Differences Since there is hardly any difference in the offerings of the various providers, so product differentiation is low. So bargaining power of buyers is high. Buyer Information Todays customers are well educated about the various product offerings in the sector. So bargaining power of buyers is high. Buyer Switching Costs

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Since customers dont have to pay a fat premium to be registered for provision of services , so bargaining power of buyers is high. Brand Identity High Brand Identity and trustworthiness reduce the bargaining power of buyers but, otherwise the bargaining power of buyers is high. Buyer Profits Since dealers offers discounts and various bundling services like 0% insurance, old car sale, etc, on different items. Hence bargaining power of buyers is high.

Bargaining Power of Suppliers Analysis of the determinants of relative power between the producers in an industry and their suppliers is precisely analogous to analysis of the relationship between producers and their buyers. The only difference is that it is now the firms in the industry that are the buyers and the producers of inputs that are the suppliers. The key issues are the ease with which the firms in the industry can switch between different input suppliers and the relative bargaining power of each party. Product Differences Since there is hardly any difference in the offerings of the various suppliers, so product differentiation is low. So bargaining power of Suppliers is low. Supplier Information Todays automobile manufacturers are well educated about different Suppliers. So bargaining power of Suppliers is low. Supplier Switching Costs Since different Suppliers hold resources as per buyers requirements and a large inventory has to be maintained. So bargaining power of Suppliers is low as they would have to incur a huge cost on switching . But if they get automobile manufacturers for similar products who can pay higher Supplier switching cost is low. In such case, bargaining power of Suppliers is high.

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Brand Identity High Brand Identity and Trustworthiness of a Supplier increases the bargaining power of Suppliers. But, otherwise the bargaining power of suppliers is low

Pestle Analysis:
Political Aspects Tax policies, trade regulation, political influence and some of the rules and regulation of government policies which is considered in political analysis. The corrections in Excise duty on electric vehicles which will enable the manufacturers take CENVAT credit and exemption of customs duty on Electric Vehicles parts and also weighted deduction for in-house R&D to 200% from 150% and outsourced R&D from 125% to 175%. This would encourage industry that much because this price hike isnt expected to impact sales in a significant way as a majority of two-wheeler buyers were prepared, and to certain extend braced up and ready to shell out extra money for their favorite set of wheels. Economic Aspects Economic factor are those which is influenced by economic growth, interest rate, exchange rate and inflation rate. Abundant and low cost labour coupled with local availability of raw material like steel, aluminum and natural rubber has placed India amongst the low cost producing centers of two-wheelers. Consequently, CARE Research anticipants buoyant growth in two-wheelers exports as well. Abundance of low labour and raw material gives India an upper hand in the export. Since many auto finance company laid easy installment rules with less interest rate it makes more segment people to go for it. Social Aspects Social aspects of two-wheelers industry are Popularity, Subculture, Mobility and safety. In numerous cultures, motorcycles are the primary means of motorized transport. India is the second largest motorcycle markets in the world next to China. Socially many motor cycle organization raise money for charities through organized ride and events. Many people ride motorcycle for various reasons, those reasons are increasingly practical, with riders opting for a powered two-wheeler as a cost-efficient alternative to infrequent and expensive public transport system, or as a means of avoiding or reducing the effect of urban congestion. Motor-cycle gives a great advantage to the specified designation where other buses cannot enter. Since there is a rule in some of the

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main states and cities in India to wear helmet while riding two-wheelers to make them safe from accidents makes two-wheeler riders to have a safe journey. Technical Aspects Technical Aspects in Two-wheeler industry includes construction, fuel economy, electric motorcycles, dynamics and accessories. Two-wheeler construction is the engineering, manufacturing, and assembly of components and systems for two-wheelers which results in performance, cost and aesthetics desired by the designers. Construction of two-wheeler includes steel, aluminium frame, telescopic forks and disc brakes. Motorcycle is the best fuel economy mode of transport, Nowadays two-wheelers is designed to give more than 80km mileage per liter with low maintenance cost. Invention of Electric motorcycle gives an added advantage since the two-wheeler users can avoid using petrol. Different types of two-wheelers have different dynamics and these plays a vital role in their performance. Since sufficient bike accessories are available in many place two-wheeler riders has a privilege to change the broken parts very easily.

Conclusion
The study has helped Royal Enfield dealers to understand whether the customers are satisfied or not. If not what are main reasons for dissatisfaction of customer towards the dealer and what are the ways of improving the satisfaction level of customer towards dealer. We can conclude younger generation and middle age are more interested in Royal Enfield, the buying behavior is governed predominantly bythe need for Power and respect for the iconic Brand and users are mostly Professional Males, 20-35 years of age, including some students. Most of the customers are attracted to newly released Classic 350/500, also customers are easily affording the price of Royal Enfield bikes and customers are very loyal towards the brand Royal Enfield. Royal Enfield should concentrate on its advertising campaign to reach the customers, mileage of the Royal Enfield bikes is very economical and most of them prefer to buy their bike brand new from showroom with the spare parts available in market easily. Royal Enfield has an excellent satisfaction level within the customer for its power, pick up, comfort, safety and with after sales service. It is clear that Royal

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Enfield checks at the complaints registered by their customers on regular basis to maintain its brand value and entire Royal Enfield owner are passionate Royal Enfield fans.

Recommendation: Aggressive selling- The Company should follow an aggressive selling concept. A non-aggressive selling concept which is clearly visible in its advertising campaign which does not hit on the customer rather aims to provide information in a subtle manner. Promotional campaign- The Royal Enfield ads seen on electronic and print media are absolutely out of touch with the Indian culture and thought process. An Indian consumer irrespective of their income level has a soft corner for traditions and culture of India. Hence, all companies including market leaders like Hero Honda and Bajaj capitalize on this behaviour of customers and design their ad campaigns keeping India in mind. Weak follow up from dealerships- It was observed during the study that Royal Enfield was quite weak in following up with prospective customers. Measures should be taken to improve its dealership- Showrooms are very small in size and do not reflect the quality and scale of Royal Enfield in the market. Should improve the after sales service- During the survey it was found that Royal Enfield is not satisfying all their customers in after sales services, employees at dealership sometimes use harsh words and become rude to the customers, parts of the bike are not easily available in the market. This is the major drawback in capturing the market share so Royal Enfield should take some better steps to satisfy and retain their customers.

Increase in customer query response- During the study it was found that dealers are not satisfying the queries of customers and so suggested to increase customer query response by dealers.

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Youth oriented promotion- Company should focus more on younger generation as it can increase sales and market share in Bangalore. Purchasing way of customers- Customers are easily affording the price of Royal Enfield bikes and they are not feeling much problem with the amount. But the company should also take some steps towards making purchase easier through bank loans and EMI. Marketing communication- It should focus on satisfying the needs for Respect, Power, Safety and Comfort. Brand ambassador- A non-flamboyant well-built brand ambassador may be chosen to represent the Brand. It is necessary for Royal Enfield to have a brand ambassador from India to connect with the Indian customer. Build iconic status- Royal Enfield should concentrate on building around the iconic status it already enjoys if it plans to attract customers migrating to other manufacturers.

References: www.google.com www.royalenfield.com www.scribd www.googlescholar.com