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Market survey on the pre-purchase buyer behavior & Brand awareness of Royal Enfield “Thunder Bird” bike2010-11 1.1 INTRODUCTION OF THE STUDY: The first Engine powered vehicle was produced by the inventers was produced by the inventers in 17 th and 18 th centuries. The entry of 100 cc two wheeler in the Indian market took place during the year 84-85. It took the auto industry by storm and has come a long way. Since then it was a dream come true for the middle class as non they could afford and own their own vehicles and they also gain better mileage than the already existing two wheelers. The two wheelers industry enjoys at present an unprecedented boom. The current place in the country being fairly high represents a quantum leap in technology & production. Around 2.5 million motorized two wheelers are being turned out annually. In addition the industry proved of a production potential of nearly 4 million units a year. The people who could not afford more expensive vehicles also took these two wheelers as a status symbol. These two wheelers were also easily affordable & maintenance was also not very high. It was a bike for the middle class and also for the students & the younger people as it gained their image a boost. The Oxford college of Business Management. Page 1

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Page 1: royal enfield

Market survey on the pre-purchase buyer behavior & Brand awareness of Royal Enfield “Thunder Bird” bike2010-11

1.1 INTRODUCTION OF THE STUDY:

The first Engine powered vehicle was produced by the inventers was produced by the inventers in 17th and 18th centuries. The entry of 100 cc two wheeler in the Indian market took place during the year 84-85. It took the auto industry by storm and has come a long way. Since then it was a dream come true for the middle class as non they could afford and own their own vehicles and they also gain better mileage than the already existing two wheelers. The two wheelers industry enjoys at present an unprecedented boom. The current place in the country being fairly high represents a quantum leap in technology & production. Around 2.5 million motorized two wheelers are being turned out annually. In addition the industry proved of a production potential of nearly 4 million units a year.

The people who could not afford more expensive vehicles also took these two wheelers as a status symbol. These two wheelers were also easily affordable & maintenance was also not very high.

It was a bike for the middle class and also for the students & the younger people as it gained their image a boost.

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Market survey on the pre-purchase buyer behavior & Brand awareness of Royal Enfield “Thunder Bird” bike2010-11

1.2HISTORY

In 1893, the Enfield Manufacturing Company Ltd was registered to manufacture bicycles. By 1899, Enfield were producing quadricycles with De Dion engines and experimenting with a heavy bicycle frame fitted with a Minerva engine clamped to the front downtube. In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a 770 cc V-twin JAP engine which was raced successfully in the Isle of Man TT and at Brooklands

In 1911, prior to the outbreak of the First World War in 1914, Enfield added the word "Royal" to its name. They supplied large numbers of motorcycles to the British War Department and also won a motorcycle contract for the Imperial Russian Government. Enfield used its own 225 cc two-stroke single and 425 cc V-twin engines. They also produced an 8 hp motorcycle sidecar model fitted with a Vickers machine gun.

In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-stroke 350 cc single using a JAP engine. In 1928, Royal Enfield began using the bulbous 'saddle' tanks and centre-spring girder front forks, one of the first companies to do so. Even though it was trading at a loss in the depression years of the 1930s, the company was able to rely on reserves to keep going. In 1931, Albert Eddie, one of the founders of the company, died and his partner R.W. Smith died soon afterwards in 1933.[2]

During World War II, The Enfield Cycle Company was called upon by the British authorities to develop and manufacture military motorcycles. The models produced for the military were the WD/C 350 cc sidevalve, WD/CO 350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV and WD/L 570 cc SV. One of the most well-known Enfields was the Royal Enfield WD/RE, known as the Flying Flea, a lightweight 125 cc motorcycle designed to be dropped by parachute with airborne troops.

In order to establish a facility not vulnerable to the wartime bombing of the Midlands, an underground factory was set up, starting in 1942, in a disused "Bath Stone" quarry at Westwood, near Bradford-on-Avon, Wiltshire. Many staff were

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transferred from Redditch and an estate of "prefabs" was built in Westwood to house them.

As well motorcycle manufacture, it built other equipment for the war effort such as mechanical "predictors" for anti-aircraft gunnery: the manufacture of such high precision equipment was helped by the constant temperature underground.

After the war the factory continued, concentrating on engine manufacture and high precision machining. After production of Royal Enfield motorcycles ceased, the precision engineering activities continued until the final demise of the company.

Postwar Model G and Model J and ex-military C and CO (1946–1954)

Postwar, Royal Enfield resumed production of the single cylinder ohv 350cc model G and 500cc Model J, with rigid rear frame and telescopic front forks. These were ride-to-work basic models, in a world hungry for transport. A large number of factory reconditioned ex-military sv Model C and ohv Model CO singles were also offered for sale, as they were sold off as surplus by various military services.  Springframe Bullets 350cc 1949-1970

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

500 Twins, Meteors, Super Meteors and Constellations 1949-1963

In 1949, Royal Enfields version of the now popular selling parallel twins appeared. This 500cc version was the forerunner of a range of Royal Enfield Meteors, 600cc Super Meteors and 700cc Constellations. Offering good performance at modest cost, these sold widely, if somewhat quietly in reputation. The 700cc Royal Enfield Constellation Twin has been described as the first superbike.

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in the late 1950s and early 1960s, Royal Enfield produced a number of 250 cc machines. The biggest-selling of these was the Royal Enfield Crusader, a 248 cc pushrod OHV single producing 18 bhp (13 kW). In 1965, a 21 bhp (16 kW) variant called the GT Continental, with GRP tank, five-speed gearbox (which was also an option on the Crusader), clip-on handlebars and rearset footrests, was launched. It sold well with its "cafe racer" looks. Other variants were the 250 "Turbo Twin", fitted with the Villiers 247 twin two-stroke engine. An oddity was the 250 Super 5, mainly notable for its use of leading -link front suspension (all the other 250 models had conventional telescopic forks).

first Superbike During the onslaught of the better engineered Japanese motorcycle manufacturers in the late sixties and early seventies, the English factories made a final attempt with the 1962–1968  series I and Series II. Made largely for the US market, it sported lots of chrome and strong performance, completing the quarter mile in less than 13 seconds at speeds well above 175 km/h (105 mph). t became very popular in the US, but the classic mistake of not being able to supply this demand added to the demise of this last English-made Royal Enfield.

The Redditch factory ceased production in 1967 and the Bradford-on-Avon factory closed in 1970, which meant the end of the British Royal Enfield. After the factory closed a little over two hundred Series II Interceptor engines were stranded at the dock in 1970. These engines had been on their way to Floyd Clymer in the US, who unfortunately had just died. His export agents, Mitchell's of Birmingham, were left to dispose of them. They approached the Rickman brothers for a frame. The main problem of the Rickman brothers had always been engine supplies, so a limited run of Rickman Interceptors were promptly built.

As far as the motorcycle brand goes, though, it would appear that Royal Enfield is the only motorcycle brand to span three centuries, and still going, with continuous production. A few of the original Redditch factory buildings remain (2009) and are part of the Enfield Industrial Estate.Enfield Indians

From 1955 to 1959, Royal Enfields were painted red, and marketed in the USA as Indian Motorcycles by the Brockhouse Corporation, who had control of the Indian Sales Corporation (and therefore Indian Motorcycles) and had stopped manufacturing

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all American Indians in the Springfield factory in 1953. But Americans were not impressed by the badge engineeringand the marketing agreement ended in 1960, and from 1961, Royal Enfields were available in the US

Enfield India (1949–present)

Royal Enfield motorcycles had been sold in India from 1949. In 1955, the Indian government looked for a suitable motorcycle for its police and army, for use patrolling the country's border. The Bullet was chosen as the most suitable bike for the job. The Indian government ordered 800 350 cc model Bullets, an enormous order for the time.[12] In 1955, the Redditch company partnered Madras Motors in India in forming 'Enfield India' to assemble, under licence, the 350 cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). Under Indian law, Madras Motors owned the majority (over 50%) of shares in the company. In 1957 tooling equipment was sold to Enfield India so that they could manufacture components.

Royal Enfield India is still manufacturing in India and is being sold in India and is also being exported to Europe as well as America and Australia. Recently Royal Enfield has undergone a major retooling specially in the engine department with introduction of twin spark unit construction engine on all its models with EFI available on their flagship 500cc model. This retooling has sparked such an interest in these bikes that they have started double shifts at the plants. These bikes, which in spite of their modern engines look as much a classic as their 1950 counterparts, are on a 6 month wait-list.

1.3Industrial background of the study

Origin

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India commenced development of its automobile industry as early as 1950’s as passenger cards and commercial vehicles industries took shape through 60s & 70s. The emphasis was on the public transport vehicles as also on 1950. India share a world automotive output as increased from 0.1% to 0.4% only.

The year 1982, a marked and important watershed in the history of Indian automotive industry. The advent of Maruti car opened the floodgate of contemporary Japanese technology to the Indian government labializations of industrial policy set in motion a near total transformation of an industry through modernization and ethnological up gradation.

Growth and development

The two wheeler industry has undergone a metamorphic change in 90s and few would have anticipated that the deferent types of two wheelers would be increase in popularity with both sexes opting to own personal transport. In the early stages sale of scooters, motorcycles and moped where effect mainly in urban areas. Laterally, rural areas too greater preferences is being accorded as cycles are leaving place to powered driver two wheelers such as scooters, motorcycles, and moped.

While the growth in this years has been spectacular the output may berising even more impressively henceforth as a dearer patrolling products have been compelling the use of two wheelers because of the economics that can achieved in fuel consumption.

The growth in 80s was due mainly to changing taste and improving thestandards of living. After initial smart growth as stag net face was notice with

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cessionary trends I early 90s but the progress in 93-97 has been significant with total output rising by 69.64% to 29.79 lakhs from 17.63 lakhs unit in 1993-94. The increase in sales was pronouns in 1994-95 and 95-96 but there has been deceleration in growth in 96-97 with the total rising by only 11.48% against 20.32% and 25.73% in two previous years.

With an enlarging base there is necessarily be a slowdown in growth rate, but even in absolute terms sales where higher by only 3.05 lakhs in 96-97 against 4.49 lakhs units and 4.45 lakhs unit respectively in two previous years. The drop in incremental of take in 96-97 was on account on slump in demand from scooters which rose by 86350 units against 1.89 lakhs units 200000 lakhs units in previous years.

Even greater preference for motorcycle and larger incremental sales of 1.69 lakhs units against 1.57 lakhs units 1.83 lakhs units a new draw of total additional sales by 1.40 lakhs units could not avoided as there was also a slackening demand for mopeds the sales grew by only 49704 units has compared to 1.01 lakhs and 62472 units. The significance of these trends is not clear as a change in preference a strongly in-favor of motorcycles.

But the aggregate sales of two wheelers have risen by 7.94%, 19.40% and 13.54% respectively in the 3 years under the reference.

The hike in petroleum product has been discouraging factor there was probably saturation in demand for scooters and motorcycles particularly in some areas, but the progress should be impressive in the coming years as stated earlier with a revival in economic activity and better appreciation of the possible fuel economics.

The trends in production and sales indicate that motorcycles are being preferred for to greater extend than other vehicles.

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The proportions of motorcycles on the other hand have been rising at a faster rate. If this continues in evidence in coming year, larger capacity may have to be created for turning of motorcycles.

1.4 Theoretical background of the study

Modern marketing system evolved after First World War (1914-1918). There was the problem of surplus and overproduction as an aftermath of the war. Growth of organization was considered necessary to meet the growing demands of the people. There was a shift in emphasis from commodity to institution to deal with trade situation. Marketing was considered as business activity. With the main motive of profit, the world depression brought business failures. Recovery measures to boost trade and commerce were introduced by the countries. The fast raising events and subsequent growth in the economic development of the countries and change in the philosophy of marketing concept brought about changes in the production and distribution of goods.

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The latter half of 20th century changes in the attitudes among producers and in success. Marketing is not considered a business but also a special phenomenon under the social concept of marketing the manufacturers and top business executives practice the philosophy of customer satisfaction and social good. it could be said that top executives spend less time on profit maximization, but more time to create repeat sales with an impression to create wider market for their commodities.

Marketing has been a vital function; significant to the fulfillment of the business objectives and consumer oriented techniques are adopted to suit the socio economic need of the country. Marketing function which first focused attention on commodities later on institutions to carry out marketing process has now turned to the consumer and his social needs marketing is applied to even social services. The modern approach to marketing is management oriented representing professionalization in exchange relationship.

Buyer behavior

Buyer behavior is a comparatively new field of study .it is attempting to understand and predict human action in the buying role. It has assumed growing importance under market –oriented or customer –oriented marketing planning’s and management

Buyer behavior is defined as all psychological, social and physical behavior of potential customer as they become aware of, evaluate, purchase, consume and tell other about product and service. Each element of this definition is important

1) Buyer behavior is involved both individual (pshylogical) process and group (social) process,

2) Buyer behavior is reflected from awareness right through post purchase

3) Buyer behavior includes communication, purchasing and consuming behavior

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4) Consumer behavior is basically social in nature, hence, social environment play an important role in shaping buyer behavior, and

5) Buyer behavior includes both consumer and industrial behavior

Pre purchase

Pre purchase behavior there are three steps:

1) Awareness

2) Interest

3) Desire

1.5Brand Awareness

Brand awareness is a marketing concept that measures consumers' knowledge of a brand's existence. At the aggregate (brand) level, it refers to the proportion of consumers who know of the brand

Measurement driven conceptualization

Brand awareness means the extent to which a brand associated with a particular product is documented by potential and existing customers either positively or negatively. Creation of brand awareness is the primary goal of advertising at the beginning of any product's life cycle in target markets. In fact, brand awareness has influence on buying behaviour of a buyer. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

A brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received.

There are two schools of thought regarding the existence of negative brand equity. One perspective states brand equity cannot be negative, hypothesizing only positive

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brand equity is created by marketing activities such as advertising, PR, and promotion. A second perspective is that negative equity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention (Blackwater or Halliburton, for example).

Colloquially, the term "negative brand equity" may be used to describe a product or service where a brand has a negligible effect on a product level when compared to a no-name or private label product. The brand-related negative intangible assets are called “brand liability”, compared with “brand equity” [11].

Family branding vs. individual branding strategies

The greater a companies brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity includes: brand loyalty, awareness, association, and perception of quality.

Brand awareness can be measured by showing a consumer the brand and asking whether or not they knew of it beforehand. However, in common market research practice a variety of recognition and recall measures of brand awareness are employed all of which test the brand name's association to a product category cue, this came about because most market research in the 20th Century was conducted by post or telephone, actually showing the brand to consumers usually required more expensive face-to-face interviews (until web-based interviews became possible). This has led many textbooks to conceptualise brand awareness simply as its measures, that is, knowledge that the brand is a member of a particular product category, e.g. soft-drinks. Examples of such measures include:

Brand recognition - Either the brand name or both the brand name and category name are presented to respondents.

Brand recall - the product category name is given to respondents who are asked to recall as many brands as possible that are members of the category.

Top of mind awareness - as above, but only the first brand recalled is recorded (also known as spontaneous brand recall).

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Research on metrics

There has been discussion in industry and practice about the meaning and value of various brand awareness metrics. Recently, an empirical study appeared to put this debate to rest by suggesting that all awareness metrics were systematically related, simply reflecting their difficulty, in the same way that certain questions are more difficult in academic exams

Brand recall

Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or service class, as distinct from brand recognition.

Common market research usage is that pure brand recall requires "unaided recall". For example a respondent may be asked to recall the names of any cars he may know, or any whisky brands he may know.

Some researchers divide recall into both "unaided" and "aided" recall. "Aided recall" measures the extent to which a brand name is remembered when the actual brand name is prompted. An example of such a question is "Do you know of the "Honda" brand?"

In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their competitors. The first recalled brand name (often called "top of mind") has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase.

Brand Recognition

Brand Recognition is the extent to which a brand is recognized for stated brand attributes, parts, offerings, or communications.

In some cases brand recognition is defined as aided recall - and as a subset of brand recall. In this case, brand recognition is the extent to which a brand name is recognized when prompted with the actual name.

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A broader view of brand recognition is the extent to which a brand is recognized within a product class for certain attributes. Logo and tagline testing can be seen as a form of brand recognition testing. For example, if a product name can be associated with a certain tagline, logo or attribute (safety and Volvo; "Just do it" - Nike) a certain level of brand recognition is present.

Stability of responses

While brand awareness scores tend to be quite stable at aggregate (level) level, individual consumers show considerable propensity to change their responses to recall based brand awareness measures. For top of mind recall measures, consumers give the same answer in two interviews typically only 50% the time . Similar low levels of consistency in response have been recorded for other cues to elicit brand name responses 

1 Branding

Consumer view a brand as an important part of product and Branding can add value to product. For example, most consumers would perceive a battle of white linen perfume as a high quality, expensive product. But a same perfume is a unmarked battle would likely we viewed as lower in quality even the fragrance where identify.

Branding has become a major issue in product strategy on the one land, developing a brand product requires a great deal of long marketing investment, especially for advertising, promotion and packaging

What is branding?

Perhaps the most distinctive skill of professional marketers is their ability to create, maintain, protect, enhance brand. A brand is name term, sign, symbol, or design or combination of these indented to identify the products or services of one seller in group of seller and to differentiate them those of competitors. Thus a brand identifies a market in selling a product. A brand is a sellers promise to deliver

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consistently as specifics set of features, benefits and services to buyers the best hands convey a warranty of quality. According to a marketing executive, a brand can deliver up to four levels of meaning.

a) Attributes

b) Benefits

c) Values

d) Personality

Market survey

Market survey is conducted to know the customers opinion about the product and the future plans like in future what all the charges they will be expecting from the company. It also helps in making out how well company is ding in the market with respect to their competitors

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2.1 DESCRIPTION OF MARKET RESEARCH

Marketing research is the systemic design, collection, analysis & reporting the findings relevant to specific marketing situation that the company faces in regard to specific marketing problems.

Manager cannot always wait for information to achieve in bits and pieces from the marketing system. They often require formal studies of specifics situations. In each situation, the marketing intelligence will not provide the detailed information needed by the managers. So it is required to go from marketing research.

Marketing research is the function that links the marketer to the consumers and the public through information. It is used to identify & define marketing opportunities & problems, to generate, define evaluate the market, to monitor marketing performances, and to improve understanding of the marketing process. Marketing researchers engage in a variety understanding of the marketing process. Marketing researchers engage in a variety of activities, ranging from market potential & market share studies, to assess the consumer satisfaction & purchase behavior to the studies, product, distribution & promotion Activities. A company can conduct market research in its own research department or have some outside agency to do it. Whether a company uses outside agency its own research depends upon their skills and resources available.

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2.2 STATEMENT OF THE PROBLEM:

The consumer market consists of all the individuals and households who buy or acquire goods & services for personal consumption. The consumers’ ranges tremendously in age, income, education level, mobility pattern, tasks etc.

Consumers generally have some perceptions in their mind about the product before buying it. This may be of price, quality, color, durability, status, pride ness, good performance or services etc. these perceptions of the consumer are very vital in their decision making procedure.

This study has therefore been conducted to evaluate the market to ascertain the brand awareness of Royal Enfield Thunderbird.

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2.3 OBJECTIVE OF THE STUDY:

The following are the objective of the study.

1. To identify the brand awareness of the prospective consumers in relation to Royal Enfield Thunderbird.

2. To identify the pre purchase behavior of customers.

3. To study the factors influencing the buying decisions of the consumers.

4. To come out with necessary suggestions & conclusions based on analysis, by interpretation of the data.

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2.4 SCOPE OF THE STUDY:

The scope of project study by the researcher is mainly focused on the understanding of the consumer’s satisfaction & dissatisfaction. The information, which was gathered from the project study, makes the project more useful by developing the needed information for internal company records. This information also proves useful to managers in the right form at the right time in order to help them for better marketing decisions.

To achieve the goals of a business, the company has to monitor the market situation on a regular basis to be updated on the market trends. Thus the survey has a great scope both for the company as well as the Brand.

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2.5 NEED FOR THE STUDY:

Now a day’s business is extremely competitive for all the products and it is needless to say that any company has to win the confidence of its customers. So it is necessary to clarify the position of the product of a particular company about its quality and market demand.

Following are the basic needs for this study:

1. To conduct a market survey and study the brand awareness of Royal Enfield Thunderbird in Bangalore city

2. To collect the pre purchase behavioral attitude of the prospective buyers.

3. To come out with necessary suggestions to improve the level of consumer awareness and attitude towards the vehicle and hence to improve its sales.

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2.6 REACHERCH METHODOLOGY:

Questionnaire was only research instrument used by asking a series of questions. The questioners was prepared by keeping in mind the following factors

-Simplicity, complexes of the data in the logical sequence of questions.

1. The data have been collected by circulating questionnaires to select a few sample audiences only.

2. All primary data is draw and reflects the actual intentions of the respondents.

3. The data collected has been coded, tabulated and analyses into logical statements using simple statistical methods like tally making, average mean method, percentage, analysis and pie-charts.

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Research Process:

The marketing research process consists of four steps.

1. Defining the key problem & research objectives.

2. Developing the research plan for collection information.

3. Implementing the research plan.

4. Interpreting and reporting the findings.

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2.7 SAMPLING PROCEDURE:

The method of convenient sampling was used for the study. This is because of the fact that extensive consumers had to be conversed within a limited time.

However all precaution were taken to avoid sampling and field errors by uniform coverage of the consumer chosen for sampling.

Sampling instrument: Questionnaires containing a set of printed questions was chosen as the instrument of Data Collection.

Sampling Size: A total of 100 Questionnaire were administered to gather information as per the objectives laid down.

Sampling Location: The “garden city” Bangalore, was taken as the location of survey.

Processing and Analysis of Data:

The data after being collected was processed and analyzed in order to draw inference and find solution to the problem. The processing of data consists of editing, coding and tabulation of data and appropriate statistical techniques were used which ultimately helped analysis and draw conclusions.

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2.8 Sources of Research:

Keeping in view the objective of the study, the conventional marketing research program and the procedure for the study consist of the following elements.

The data was collected through two sources. They are Primary sources and secondary sources.

1. Primary sources.

The information which was collected using questionnaire method from the respondents is a primary source of data. It is original data gathered specially for project study. It includes directed contacts with respondents regarding their responds towards the product.

2. Secondary sources.

A secondary source of data includes the findings on the bases of research done by outside organization. It includes the information collected from various sources both internal and external such as journals of marketing company brochures and reference books on the study.

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2.9Research collection Instruments:

While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data, they are:-

1. Primary data:

The primary data are those, which are collected fresh and for the first time.

2. Secondary data:

The secondary data on the other hand are those which are already been collect by someone else and which have already been passed through the statistical process.

COLLECTION OF DATA THROUGH QUESTIONNAIRES:

This method of data collection is quite popular particularly in case of big enquiries in this method a questionnaire is send to the person concerned with a request to answer the question and return the questionnaire. A questionnaire consists of a number of questions printed or typed.

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2.10 Field work

It is the survey held in respect of making this report. It was helped by the respondents of the deferent places an extensive amount of field work was needed to complete the report.

The survey was done in different places like public gatherings, offices, promotions and colleges situated in Bangalore city only.

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2.11 Limitation of the study

The information collected from respondents may or may not be true because in some cases the respondents may not be serious. However all possibilities has been taken to collect the information as authentic as possible.

1) Most of the respondents were students, their view can’t be taken as their generals views to conclude and prepare the project report.

2) Whatever information is collected is valid until there is not any technologies change and new invention or any other type of devices is released to motivate respondents.

3) The information is subjected to change, because views of respondents are not permanent which leads deterioration of the survey report.

4) Market forces can bring about abrupt changes, which may lead to deterioration of survey of survey aspects so that information is not always relevant.

5) Respondent’s preferences fluctuate due to circumstances which invalidates the report.

6) Emergency of new aspects on conditions in the relevant field to certain level which will destroy the report.

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3.1 origin of the organization

George Townsend can be considered as the earliest the earliest pioneer who aided the set up of Royal Enfield range of two wheelers. He sets up a mill called Givry Works in Hunt End, England. And 20 years later, Faster, George’s Step-son brings into the factory one of the first “boneshakers”, a quasi-cycle with an iron backbone, wooden wheels, iron tyres and pedals of wood.

But it was RW Smith and Albert Eadie who marked the birth of the Enfield brand. RW Smith and Albert Eadie took control of Townsend’s and re-christened it “The Eadie Manufacturing Company”. Soon they stumble upon a contract with Royal Small Arms factory in Enfield, Middlesex to supply precision rifle parts for the making of Enfield rifles. Meanwhile, they make their first new bicycle – called the “Enfield”. The Enfield is marketed through a new company – The Enfield Manufacturing Company Ltd. A year later, the cycles were launched publicly and the company added the word “Royal” to the name. With that, the legendary trademark – “Built like a Gun” appeared for the first time. This marked the birth of the Royal Enfield brand.

India had the first touch of the Royal Enfield range when two young businessmen, Mr. Sundaram and Shankar, of the Madras Motor Company started importing the Bullet motorcycles into the southern port city Madras, India under Enfield India Limited Incorporated.

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The first plant was set up at Madras, India, thus marking the beginning of the era of motorcycling in India. Then, mudguards and frames followed. Soon, Enfield began sending engine kits for assembly. And before long, they too were being made indigenously, meaning the entire bike was being manufactured in India.

Classic bikes with power for leisure riding is what a Royal Enfield bike stands for, and Royal Enfield leads this segment of the market in India by leaps and bounds. Its exquisite range of motorcycles combines distinctive styles with power, riding comfort and ruggedness to deliver a unique motorcycling experience. The beginning Royal Enfield India was set up in 1955 when it started receiving 350s bikes in kits from the UK and assembling them in Chennai, India. But, eventually the entire bike was manufactured the 500cc bullet. By it’s the bullet dominated and continues to dominate the Indian roads. It is the dream choice of every motorcyclist in India with even Indian Army and Police endorsing the Bike. The Eicher Chapter in 1990, Royal Enfield entered into a strategic alliance with the Eicher and later merged with Eicher Group in 1994. The Eicher Group, is one of the Indian’s leading automotive group 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 and in 1996.

When the government decided to impose stringent norms for act Royal Enfield was the first motorcycle manufacturer to comply. Royal Enfield is amongst the first few

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Indian companied to obtain the WVTA (Whole Vehicle Type Approval) for meeting the European Community norms.

Infrastructure and technology collaboration

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 Chennai manufacturing facility.

An active in- house research & development wing is constantly at work to meet changing customer preference and the challenge of Indian and international environment standards. When introducing a new product, this team undertakes all related planning which includes a rigorous customer contact programme, design, concurrent engineering and testing process. The bike design team at royal Enfield is well known equipped with high –end CAD/CAM workstation and the latest modeling software .top-notch designers work continuously to come up with innovative bikes to meet the market’s expectations. Royal Enfield was also amongst the first Indian companies to introduce enterprise resources planning (ERP) systems to manage its operations .it also has an online supply chain management system in operation

Collaborations

Royal Enfield has technology tie-up with:

. AVL of Austria

.Fritz Egli of Switzerland

.cranfield university, UK

.Criterion Engineers, UK

Manufacturing

Royal Enfield ‘s manufacturing operations ,go through a series of modernization and improvement efforts , with a number of automated processes .the

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company has put in place modern manufacturing practice like cellular layouts , stastical process controls and flexible manufacturing system.

The Chennai manufacturing facility has received the ISO 9001 Certification for managing its operations in a clean and safe environment, it has obtained the ISO 14001 Quality certificate.

Royal Enfield ensures that all components used in bikes are sourced from the best vendors in the Indian automotive industry, who are geared to supply according to the company’s stringent quality standards.

The company works closely with all of its suppliers ,giving them technical and managerial support while maintaining practice like direct –on line and vendor self certification

Marketing network

You can fell the pulse of yours customers, only if you get close to them this though process has driven royal Enfield to set up has wide network of 13 marketing offices, 223 dealers in all major cities and tone s, 25 spare parts distributors and stockiest and 150 authorized service centers. These exports motorcycles to over 30 countries like the USA ,Japan ,Bahrain,UK Germany and many European countries through 5 international offices ,25 importers of and over 200 dealers across the globe.

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3.2 present status of the organization

Eicher limited, part the Rs 1200 crore Eicher Group, has achieved dramatic progress in its turnaround strategy, reporting a cash profit of Rs 16 crores in the financial year ended March 2002 as against a cash loss of Rs 21.2 crore in the previous year.

While Gross sales have increases 9.9% to Rs634.6 crores from Rs 577.4 crores in the previous year net sales are up 11.4%to Rs 550.5 from Rs 494.crores in the previous year.

After providing for depreciation of Rs 23.6crores (Rs 21.2crores in the previous year )and Rs 24.9 crores of interest (Rs 23.9 crores in the previous year ) the result show a whapping 82%reductin in the loss(before amortization VRS costs) to 7.7 crores from Rs 42.5 crores in the previous year a swing of Rs 34.8 crores. A charge of 9.5 crores for has been made towards expenditure on voluntary retirement scheme (Rs 9.0 crores in the previous year )Further deferred tax credit of Rs 6.2 crore for the year has been recognized in the profit and loss account for the year. As a result, the net loss (after tax) for the year is Rs 11.0 crores as compared to Rs 51.5 crores in the previous year.

In accordance with the mandatory Accounting Standard on deferred taxation, issued by the institute of Charted accounted of India, the company has made provision for deferred tax liabilities.

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The cumulative deferred tax liability as at 31.03 2001 of Rs23.8 crores has been provided by charging the same to the surplus in profit and loss account as on1.04.2001

Speaking on the performance of Eicher private limited, S Sandilya chairman and CEO, Eicher group said “over the last year, our strategy has been twofold: top line growth through introduction of new product in high growth segments, enhancement of our distribution network, and aggressive marketing and focus on cost reduction covering manpower, materials, overheads and working capital costs. This strategy has helped us to achieve growth of over 10% in sales income and enhancing the operating margin as percentage to net sales from 1% to 7% “

Royal Enfield has also made significant in turning around its performance by selling 24384 motorcycles as against 21874 in the previous year thus recording a volume growth of 12%. In value terms the turnover amounted to Rs 144 corers representing the growth of 16% over the previous year and reflecting higher per unit realization. Bullet ‘Electra’ has been well accepted in the market and currently accounts for 60% of our motorcycles sales. Bullet’s realization per bike has increased significantly on account of aggressive pricing, reduction in material costs and lower level discounts. Bullets have also substantially improved the reach and effectiveness of the distribution system. New initiative like restructuring the marketing set up and the opening of company owned and managed showrooms were taken up with view to getting closer to the customer.

The exports grew by 45% in the year 1616 motorcycles from 1127 in the previous year. Royal Enfield today exports motorcycles. To over 30 countries including USA, UK Germany and Japan.

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The comparative market share of the motorcycle manufactures during the year ended 31st march 2010 during the year

Motorcycle 2009 2010 Change in ms

Bajaj Auto ltd 24.5 25.2 -0.6

Hero Honda

Motors Ltd

48.3 47.8 0.6

Kinetic Engg

Ltd

1.5 0.0 1.5

LML Ltd 1.5 1.7 -0.2

Royal Enfield motors

0.8 1.0 -0.2

TVS Motors

Ltd.

15.3 16.4 -1.2

Yamaha Motor

India Ltd

8.0 7.9 0.1

Total 100.0 100.0 0.0

The comparative market share of motor cycle manufactures during the year ended 31st march 2010

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3.3 product profile

Technical specification and features of royal Enfield ‘’thunderbird’’ cruiser bike

Technical specification

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Engine : single cylinder, 4stroke Air cooled Engine capacity : 350cc

Max.torque :2.75kg-m@3500rpm

Gears : 5speed

Ignition : CDI

Electrical : 12vAC/DC

Wheel base : 1370

Tyre : 3.25*19 6/4pr

Features:

1) 350 cc four stroke engine with 18 bhp

2) Amazing pick-up of 0-60kms/hrs in 6 seconds

3) Top speed of 120 km/hr with stability

4) 5 speed gear box

5) Left side heel and toe gear shift

6) Superior technology C.V(constant vacuum) carburetor for instant start, good pick-up and constant mileage (40kmpl)

7) Air ventilate

8) Disk brake of 28mm dai

9) Available in attractive metallic colours (purplish blue/Rivera red /ocean black/silver ash

3.4Functional department of the organization

The organization has 5 departments for efficient running of its activities .the departments are classified on the basis of function they perform .they are production department, sales department ,sales and service department, personnel department purchase department, finance department, each department is headed by a

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departmental head ,who has direct contact with the managing director ,the department head have a complete control over their respective department and the subordinate below them ,due to which the company has increased its prestige , productivity, effective control of expenditure etc

1) Production department

The function of product department of the company is under the control of director (production) who has direct contact with the managing director. The function of production department of the company includes production planning, quality control of the production. Engineering, research and development of the production and the material management .the production unit of the company is located in Chennai .which is the head –quarter of the royal Enfield bullet. thus it has helped the company in capturing a market share etc .the engineering department of the organization also has contributed a lot of the improving design ,style and performance of the product.

The company had also given due consideration for material management it has introduced new methods of material handling proper storage of material which has benefited the company up to certain extent.

2)sales and service department

The sales and service department is playing an important role in the company. The main objective of organization is to set up. This department was to increase sales of the vehicle and provide better services to customer.

3)personal development

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The personnel development department of the company is connected with the human factors working in organization. It is the head of personnel manager.

The main objective of this department is recruitment, training, development and motivation, remuneration of personnel working in the organization and maintenance of good relationship between workers and management

Beside this department is also concerned with the outside public such a share holders, customer etc. the company has given due consideration to the welfare activities, so as to promote the welfare of the worker and would ensure safety at the work for them. Beside the company has substantially invested in research and development of the human factor.

4)Purchase department

The purchase department of the company is closely related with the production department, because the purchase department has to make available the need stock at the required time so that the manufacturing operation do not have to be stopped .similarly there is also co-ordination between finance and purchase department in the organization .the company has adopted the centralized purchasing process for the production department

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5) Finance department

The financial department of the company deals with financial planning, to increase the network of the share holder, and also the financial forecasting, raising of funds from public and effective utilization of funds.

4.1 classification & tabulation of data

Introduction:

Primary data obtained from the respondents has been classified, edited .coded, tabulation & interpreted in this chapter for analysis & interpreted of primary data, investigator has used many stastical tools and graphical representation has been used for better presentation of availed data.

Classified

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Classification is the process of the process of arranging data into sequence &groups according to their common characteristics or separating them into different but related parts

Tabulation

Tabulation refers as the intermediate process between the accumulation of data in whatever form they are obtained & the final reason account of the result by the statistics.

The data has been classified, tabulates, analyzed & interrupted by using various statistical tools such as the percentage analyzed, pie, charts, bar diagrams etc.

Analysis and findings of data :

In this chapter , a study about bullet thunder bird consumer ‘s profile knowledge &information about the product brand value & facilating factors for brand awareness are a based on a sample survey of 100 peoples in Bangalore city is reviewed of the same is provided below.

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4.2) statistical analysis and interpretation of data

Table no.1: consumer in terms of group age

variables No. of respondents Percentage

18-22 18 18

22-26 34 34

27-30 28 28

31-34 8 8

35-38 4 4

39-42 8 8

Total 100 100

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Chart no.1-consumer in terms of age group

Analysis: The above table depicts that the age group of 22-26 from the majority the respondents followed by the age group of 27-30. The age group 18-22 has responses. The elder age group of 31-34, 35-38 and 39-42 has 8, 4&8 respectively.

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Table no: 2 Two wheelers currently owned by respondents.

Variables No. of respondents PercentageYamaha rx 22 22Splendor 32 32Kawasaki 6 6Caliber 6 6Bullet 10 10Suzuki fiero 4 4Yezdi 6 6Scooters 8 8Others 6 6Total 100 100

Bar diagram no: 2: two wheelers currently owned by respondents.

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Analysis: from the above table it can be assessed that most people prefer hero Honda splendor 32%. Yamaha also has a major share of the whole with22%.royal Enfield customers were at 10%. Scooter owners were among the respondents who figured 8%. Kawasaki Bajaj rtz, Bajaj caliber & yezdi figured 6%each. Suzuki fiero contributed 4%. Others including mopeds &cars made 6%.

Table no: 3 mode of purchase (current owners)

variables No. of respondents PercentageCash 78 78finance 22 22Total 100 100

No3 pie diagram: mode of purchase

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Analysis: From the above table it is clear that majority of people opt for cash purchase .the cash price contributes 78%. People opting for finance make only 225 of the whole.

Table no: 4 respondents planning for exchange or another two wheele

Variables No. of respondents PercentageYes 80 80No 20 20Total 100 100

Pie diagram no: 4 respondents planning for exchange or another two wheeler

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Analysis: the above table makes it clear that majority of people are not willing to exchange their current two wheeler for another one. The respondents willing to go for exchange is 80% while 20% opt stick on to their current vehicle.

Table no: 5 models opting for exchange or another two wheeler

Variables No. of respondents PercentageCBZ 4 4Boxer 4 4Thunderbird 48 48Machismo 8 8Pulsar 12 12Eliminator 4 4No exchange 20 20Total 100 100

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Bar diagram: table no: 5 models opting for exchange or another two wheeler

Analysis: the above graph shows 20% respondents who are unwilling to go for exchange or another vehicle. All the ones opting for an exchange had varied difference in the choice of their vehicle. Bullet thunder bird 48%, pulsar 12% machismo8%, CBZ 4%, Bajaj boxer 4% & eliminator with4%.

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Table no 6: respondents against the features and price of the thunderbird bike

Variables No. of respondents PercentageMileage 18 18Power/pick-up 26 26Price 1 1Looks/aesthetics 27 27Durability 20 20Maintenance 8 8Total 100 100

Bar diagram of table no 6 respondents against the features and price of the thunderbird bike

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Analysis: it can be inferred from the table that looks, power /pick up& durability take a vital role in their choice of vehicles which figured 27%, 26%&20% respectively. Mileage, maintenance makes up the latter half of the lot with 18%, 8%. Price was the least of the concern with only1%.

Table no .7 Respondents about test ride

variables No. of respondents PercentageYes 89 89No 11 11Total 100 100

Pie diagram of table No 7 respondents about test ride

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Analysis: 89% of the lot had taken the test drive earlier from various places of convince lie the show room, friends etc. those of which who not take a prior test rode constituted 11%.

Table no.8 – Respondents opinion of the bike on the basis of various factors

Variables No. of Respondents PercentageEase of Starting Delighted 88

12.5Good 06Average 06

Ease of parking Delighted 4712.5Good 24

Average 29

Seating comfortDelighted 65

12.5Good 29Average 06

Aesthetics/ looks Delighted 5912.5Good 24

Average 175 Speed Gear Box Delighted 65

12.5Good 11Average 24

Left/ Toe Gear Shift

Delighted 6512.5Good 24

Average 11Pick Up Delighted 59

12.5Good 24Average 17

C.V Carburetor Delighted 4712.5Good 29

Average 24Total 100%

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Table no 8: respondent’s opinion of the bike on the basis of various factors

Analysis: the above table brings about strong opinions on the bike. The comfort provided by thunder bird had the highest with 94% in favor of it .the 5 speed gear and the toe shift was also the factors that were liked with 76%& 89% respectively. Starting & comfort other bike had the least average bid with only 6%, which makes the bike preferred among the consumer. Among the less favored was the parking convince with over 25% not preferring it.

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Table no 9: most preferred colour

variables No. of respondents PercentagePurplish blue 22 22Riviera red 44 44Ocean black 20 20Silver ash 14 14Total 100 100

Pie diagram table no.9: most preferred colour

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Analysis: 44%of the respondents liked Riviera red opposed to only 14% who preferred silver ash although 22% of the respondents liked purplish blue &20% liked ocean black.

Table no 10- most preferred brake systems

variables No. of respondents PercentageDisk 96 96Drum 04 04Total 100 100

Pie diagram of table no. 10: most preferred brake system

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Analysis: as it is seen in the above table disk brakes are preferred to drum brakes .96% of the respondents were in favor of disk brakes, while only 4% bid for the drums brakes

Table no.11- awareness of the thunder bird through various factors

Variables No. of respondents Percentage

News papers add 05 05Magazine 13 13Promotions 51 51Saw on road 16 16Show room display 01 01Others 14 14Total 100 100

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Bar diagram of table no 11. Awareness of thunder bird through various factor

Analysis: promotion display, as in the above table, has a fair 52% which makes it the source that creates the greatest exposure to the thunderbird. Bikes seen on road figures 16% while newspapers ad figures at 5%. Other related exposure like friend and relatives make up14% the fact that display is not suggested by any one as the source of awareness. The display is 0%.

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Table no 12: exposure to dealers of royal Enfield in the city of Bangalore

variables No. of respondents PercentageMadras motors 50 50Agro motors 14 14tehnik 10 10Not aware 26 26Total 100 100

Pie diagram of table no.12: exposure to the dealers of royal Enfield in the city of Bangalore

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Analysis: the above table depicts the exposure of the customer to the various dealers in Bangalore. Madras has the highest exposure with 50% and agro &teknik with 14% 10% respectively. People who are not aware of the dealers in Bangalore make up the rest 26%.

Table no 13: interested mode of payment

variables No. of respondents PercentageCash 60 60Finance 40 40total 100 100

Pie diagram of table no. 13: interested mode of payment

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Analysis: the above table shows that the majority of people prefer cash over finance .while only40% prefer finance; a whopping 60%would like to go for cash payments for purchase

5.1 FINDINGS

The primary data gathered from the respondents have been classified, tabulated, analyzed and interpreted by using percentage method and different types of diagrams.

1. The majority of the buyers of the buyers of the product are aged between 22 and 26 followed by those who are aged between 27 and 30.

2. Most owners of two wheelers prefer Splendors with 32%. Royal Enfield’s bullet only has 10% of the market share according to the respondents questioned.

3. Most of the buyers prefer to buy the products in cash payment rather than using financial facilities.

4. The majority of the respondents are planning to go for the exchange offer.5. Madras motors the best dealer for Royal Enfield’s products in Bangalore.6. The thunder bird is more popular because of the promotion made by the

company.7. Most users prefer to use disk brake rather than drum brakes.8. The preferred colours of bikes as per the respondents are Riviera Red

followed by purplish blue.9. The respondents prefer the product because of the pickup and the ease of

starting.10.According to the respondents the price of the product is too high.11.The majority wants to change their two wheeler vehicles for the

thunderbird.

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5.2 Conclusion

This market survey on the pre purchase behavior and Brand Awareness was conducted on behalf of royal Enfield Thunderbird

A single questionnaire was used to top the information for accomplishing the objective of the study.

From the study it was found that there was a great preference to Thunderbird. The bike was preferred for the seating comfort and 5speed gear it offered. The bike was also found to be liked for its braking & power. In a Nutshell, Thunderbird proved to be a performer.

The sample size was 100 for the respondents, which was distributed to the various thunderbirds Owners throughout the Bangalore city.

The findings revealed that the majority of the respondents were not aware of the new model “thunderbird” introduced by Royal Enfield the attitude that came along with the survey is encouraging.

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6.1 Suggestion

In Bangalore city, population has been increasing by leaps and bounds and the infrastructure facilities on the other hand is moving in a slow direction, this gap opens up great opportunities in the Automobile industry to increase the infrastructure facilities in the transportation segment. The large population and hence a varied prospective customers provide market opportunities for two Wheelers industries. The purchasing power had also increased over the years; there has been positive attitude by majority of people towards two wheelers & Advertisement and interest along the purchase.

1. None of the respondents are attracted to the easy availability of the vehicle. The manufactures should takes converted attempt to see that the vehicles is easily available it would boost the sales volumes.

2. Although majority of the bike owned by the respondents was Hero Honda Splendor and Yamaha, RX100, which are the best sellers in the two wheeler segment, 80% of the people opted for an exchange. This provides a great opportunity for bullet Thunderbird to penetrate the market. Hence bullet Thunderbird should advertise extensively.

3. Majority of the respondents became aware of Bullet Thunderbird mainly through Promotions and by seeing at road. Only 6% of people had News Paper Exposure and sadly none had known the bike through Showroom Display. This calls for great attention to direct the bike to higher sales through more extensive mode of promotion aimed at improved showroom displays, better promotions and more Newspaper Ads.

4. Power, looks and durability being the main expectation of the respondents in purchasing a bike, Bullet should ensure that they maintain a high

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standard of these expectations. This would direct the bike to the levels of Expectation of the customers and hence boost sales.

5. Since Thunderbird showed high level of satisfaction in the Comfort, Power, 5 speed/ Toe gear shift and to an extend styling, marketing should be stressed on more and better advertisement strategies which is been a lacking factor.

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Questionnaire

Market survey on the pre-purchase buyer’s behavior & Brand awareness Towards “THUNDERIRD”

1. Name :2. Occupation:3. Age:4. Address:5. Contact number:6. E-mail id:7. Details of currently owned two wheeler

a) Brand:b) Model:c) Make:d) Year:e) Reason for purchase:f) Mode of Purchase : Cash Finance

8. Are you planning for another Two Wheelers/ Exchange of your old bike for a new one

Yes No

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If “YES” Which is your preferred bike as of Today the reason for opting that Model/ Brand?

A) Mileage b) Power/Pickup

C) Price d) Looks / Aesthetics

9. Which type of colour do you like most?

Deep Black b) Blazing Red

c) Teitian Blue d) Metallic silver

10. Which type of brake system you like?

Drum break Disk brake

11. How did you come to know Thunderbird?

a) Newspapers b) magazine

12. Are you aware of the dealership of Royal Enfield in Bangalore.

Yes No

13. Mode of purchasing.

Cash Finance

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Bibliography

Books

1) Marketing management By prof.H.R. Appannaia, By.Dr.P.N

Reddy, Himalaya Publication (Fifth

Edition2009)

2)”essential of marketing management” By S.A .Sherleker, Dr.P.N.Reddy,

H.R. Appannaiah, Himalaya

publication (Fourth revised

edition 2008)

3) Marketing management Philip kotler Kevin lane Keller

(Twelfth edition by Dorling

Kindersley (India) pvt.ltd.

4) Overdrive magazines (December 2010)

5) Auto world magazines (December 2010)

WEBSITES

1)www.google.com

2)www.wickedpedia .com

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