Customer satisfaction- Measures the gap between consumers experience and expectation. If a consumer experience matches his expectations then he is satisfied. If a customer’s experience of a product or dealer service exceeds his/her expectations then the consumer will be delighted .And conversely if the customers experience falls short of his/her expectation then the customer is dissatisfied. Thus, customer satisfaction is the art of managing customers expectations and experience.

4. CUSTOMER SATISFACTION: A STUDY ON ROYAL ENFIED MOTORS LTD-
LEADING BEYOND HORIZON:ENGAGING FUTURE
Presented by
Salmali Dutta
Dhanasekaran R
Sujatha K
PGDM/I Year Students
IAMEE B-School, Hyderabad
What others companies are doing
➢ Customer Satisfaction through meeting their expectations
➢ The company and customers are at the same level of thinking
➢ This is a zero Sum Game i.e No Value Creation only use Reactive strategy to Respond
to customer expectations
➢ One should go beyond this thinking i.e. beyond customer expectations or beyond
customer horizon
➢ One needs proactive Strategy to engage future, to create customer
Royal Endfield
➢ Royal Enfield Motors Ltd. Says “Create Customer Expectations i.e. Create Future”
➢ Create Future i.e Engaging Future to create Customer Ecstasy beyond satisfaction
How????????
A niche player of course and a leader by itself now with no competitor in the market.
Through
➢ 4P’s -Marketing mix.
Customer satisfaction- Measures the gap between consumers experience and expectation. If
a consumer experience matches his expectations then he is satisfied. If a customer’s
experience of a product or dealer service exceeds his/her expectations then the consumer
will be delighted .And conversely if the customers experience falls short of his/her
expectation then the customer is dissatisfied. Thus, customer satisfaction is the art of
managing customers expectations and experience.

5. OBJECTIVES OF THE STUDY
 To study how Royal Enfield has become a Niche Leader with the help of 4p’s
 To study about the customer satisfaction after the sales and service and segmentation
of Classic 500cc in Hyderabad twin cities and Angul(Orissa) of Royal Enfield.
 Identify various areas of improvements and To offer suggestion based on the findings.
SCOPE OF THE PROJECT
 The main scope of the study is restricted to Hyderabad twin cities in Andhra Pradesh
and Angul (Orissa)
METHODOLOGY- Sources of data
primary data :
Type of Research
The study undertaken is of “Descriptive Research” in nature.
Nature of Research
The study is “quantitative” in nature.
It is structured, standardized question based personal and telephonic interview
Types of question
The questions asked during the study are “straight forward and limited probing”.
Total number of questions: 24
Primary Source
The Primary source of collecting data for research is:
Structured , standardaized personal telephonic interview of customers of Shanker
Automobiles in Angul (Orissa) and Kay Jee Engineers in Secundrabad (Andhra Pradesh).
Research Technique
In this study the ―survey method is used as a research technique. This method helps to obtain
right information from respondents
Primary Source
The Primary source of collecting data for research is:
Structured , standardaized personal telephonic interview of customers of Shanker
Automobiles in Angul (Orissa) and Kay Jee Engineers in Secundrabad (Andhra Pradesh).
Research Technique
In this study the ―survey method is used as a research technique. This method helps to obtain
right information from respondents
Contact Method: in Angul (Orissa In this study structured , standardized exit interview for
customers of brandstore in Erragadda and Kay Jee Engineers showroom in Secundrabad is

6. conducted. Structured , standardized telephonic interview is conducted for the customers of
Kay Jee Engineers in Secundrabad (Andhra Pradesh) and Shanker Automobiles) .
Sample Duration
The sample duration between 7th
May 2011 to 6th
June 2011
(G) Sampling Procedure
The sampling procedure followed is Simple random sampling we use an unsystematic random
selection process ensuring that every element has the same opportunity of being selected.
Sample size:100
Secondary data (discusses with dealer related to last year doc, service centre, internal reports,
documents, websites, books, journal & magazines, and discusses with sales and service
managers)
HISTORY
In 1892 a new company was created to market these new design bicycles called “The Enfield
Manufacturing Company Limited” by October 1892 and Enfield bikes were announced to
public. In 1893 the word Royal was added (after the Royal Small Arms Company) and thus
Royal Enfield began.The Royal Enfield trademark “Made like a Gun” appeared and was used
by British Army.In 1949 the 350cc Bullet was launched in India, when Madras Motors won

7. an order from the Indian Army for the supply of motorcycles.The Madras Motors Company
started off by receiving the Bullet in kits and simply assembling them.Then they began
making the frames. After this Enfield started sending in parts to be assembled in India. In
1955 the Indian Army insisted that they would continue doing business with Madras Motors
only if the Bullet was produced indigenously for its police and army, for patrolling the
country's border.Enfield India Ltd is incorporated as a public limited company and became
India’s first four stroke motorcycle manufacturer. In 1957, the tooling was sold to Enfield
India so that they could manufacture bike components. By 1962, all components were made in
India.In 1967 The Redditch factory ceased production In 1970 the Bradford-on-Avon factory
closed, which meant the end of the British Royal Enfield in 1971. In 1970 Enfield India was a
company established in its own rights and with a production line going full steam,the need for
collaboration with Enfield of UK was no longer seen. Considering the wet, slushy and messy
road of India Magdyno gave way to “DELCO” ignition system. In 1993 the Taurus Diesel
was the first production diesel motorcycle in India.In 1994, Eicher Group acquired Enfield
India Company. In late 1995, the Enfield India firm acquired the rights to the name Royal
Enfield motors limited and first bullet club in Bangalore was launched.2011 Royal Enfield
motorcycle division sold 16,968 units, up 36.2 per cent in the first quater
.
Marketing Mix
The set of controllable tactical marketing tools-product, price, place, and promotion-that
the firm blends to produce the response it wants in the target market. Marketing mix
decisions must be made for influencing the trade channels as well as the final customers.
PRODUCT MIX:
The aggregate of products offered for sale by a firm. The product mix may be measured in
breadth (i.e., the number of product lines carried), or in depth (i.e., the assortment of sizes,
types, colors, and style within each product line).
Infrastructure and technology collaboration
. 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 modelling 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. for new engines.
DB Designs, UK for styling.
Fritz Egli of Switzerland. for high power engines for 535cc and 624cc.
Cranfield university, UK.
Criterion Engineers, UK for a new 5 speed transmission system.

8. Manufacturing
The company has put in place modern manufacturing practice like cellular layouts, statistical
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.
Handcrafted
These are mechanical motorcycles, handcrafted with love, engineered with purpose, and
designed in a way that gives each machine its own unique character. Over 300 highly skilled
people hand assemble each Royal Enfield. From machine shop to paint and polish An active
in-house Research & Development team works to meet the demands of a dynamic industry,
including changing customer preferences and the challenges that come with international
environmental standards. The Design team is equipped with the latest in CAD/CAM
workstations and modeling software.. From engine and gearbox assembly to hand painted gas
tanks, each step of our manufacturing process makes Royal Enfield a world-class machine.

9. PLACE MIX:
The decision taken to market the goods through a particular channel to achieve the most
economic cost effective result.
Marketing network- Royal Enfield has set up wide network of 13 marketing offices,223
dealers in all major cities and towns, 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 5international
offices ,25 importers of and over 200 dealers across the globe.
PROMOTION MIX:
The selected combination of advertising, publicity, sales, promotion, and personal selling used
to communicate, which inform, and sell goods to the customer.
Promoting riding- As the only genuine touring motorcycle manufactured in India, Royal
Enfield has more recently stayed away from regular mass media advertising and has
concentrated more on building its brand around the values that the brand stands for - riding
and eating up the miles. Royal Enfield strongly promotes leisure motorcycling as a lifestyle
and encourages the Royal Enfield riders/owners to keep riding.. Quite unlike volume-driven
models from the stables of Hero Honda and Bajaj Auto, Royal Enfield motorcycles are meant
for the passionate rider who will buy them irrespective of the price. Little wonder, therefore,
that some of them are already part of dedicated clubs. It is to the others that ‘Keep Riding’ will
reach out.
Building Camaradine-The company’s Web site is one of the major communication tools
through which dealers and brand stores make known the trips planned in the coming weeks.
“The company is not looking at this activity in terms of sales leads or enquiries. Our objective
is to facilitate a sense of camaraderie where one makes a new friend or ends up buying a new
bike,” Mr Ravichandran said
.RIDES FOR ROYAL ENFIELD CUATOMERS
Besides manufacturing the legendary motorcycles which have become synonymous with an
adventureous and leisure motorcycle culture across the world,Royal Enfield also conducts
rides all over India like Ladhak ,Rann of Kutch,NH17 road on Mumbai-Pune highway,
Rajasthan,Goa ,Kanyakumari etc, which give a taste of adventure and with a closer look at the
intricacies of the wonderful terrains,the people and the culture of the region.Each ride has
medical,logistic and technical backup ensuring the well being of all the men and their machine
on these rides.
ONE RIDE- This year the ONE RIDE took place on the 3rd of April and was celebrated
across the world. This celebration is in line with Royal Enfield’s philosophy of promoting the
adventure and leisure riding under its 'keep riding' initiative.Perhaps one of the largest
celebrations of the ONE RIDE was on home ground in Chennai. Over 140 bikers assembled at
the Besant Nagar beach to celebrate the ONE RIDE. The CEO of Royal Enfield Dr Venki
Padmanabham was one of the prominent riders in the group

10. . PRICE MIX:
The establishment of a realistic price framework to maintain a company’s competition in the
market place.
Price-The price is high because it is a premium bike, the bike is completely made up of metal
like Aluminium (previously it was made up of cast iron) not fibre plastic, completely
handcrafted, proven durability, traditional style with modern technology and the bike has self
life of more than twenty years and no competitor in the market.To vintage enthusiasts, a Royal
Enfield is what a motorcycle should look like. It has a strong presence and their riding
adventures are part of their customers identity.
A Record feat
The Army Service Corps (ASC) Tornados Team successfully mounted 54 Persons on a
single Royal Enfield 500 Motorcycle on Sunday the 28th
of November 2010. The
motorcycle used for this attempt did not have any modifications in the Engine for this
feat.
The Royal Wizard
The smash hit movie Harry Potter and the Deathly Hallows is said to have given Royal
Enfield and Watsonian Squire sidecars a significant popularity. In the film, Royal
Enfield 500 fitted with a Watsonian sidecar is featured with Hagrid riding the bike and
Harry Potter sitting in the sidecar whilst they zip through London at night, dodging
traffic

11. .
SWOT ANALYSIS FOR ROYAL ENFIELD, INDIA
STRENGTHS
• Experience in the market
• Established brand
• Committed and dedicated staff
• High emphasis on R and D
• Established market channel
• Blend of traditional and modern
style and technology.
• International demand
• Customers use the brand to
enhance their status/image
• Effective advertising capability
• No competition in 350cc and 500cc
bikes
• ERP operated operations
• Online supply chain management
• Proven product durability
• Customer retention
WEAKNESSES
• Weak product diversity
• Not much emphasis on aggressive
selling
• Only plant to meet the national and
international demand for the
product and spare parts
• Longer waiting periods
• High price
• No bike in entry and executive level
segment

12. OPPORTUNITIES
• First mover advantage
• Growing premium segment
• Expansion of target market
(including women)
• Increasing dispensable income
• Global expansion
• Offering better finance scheme
THREATS
• Cut throat competition
• Increasing players in the market
• Raising cost of raw materials
• Increasing rates of interests on
finance
• Entry of other players in the 350cc
segment
• Entry of exclusive foreign players
SUMMARY OF FINDINGS
➢ Majority of the respondents fall under the age group of 30-45 and hence Royal Enfield
is mainly preferred by Middle aged people in Hyderabad.
➢ All the respondents are highly educated indicating that they had an adequate
educational background to support their response.
➢ Majority of the respondants are Businessmen. indicating the responses were spread
over the youth & experienced people.

13. ➢ The source of awareness of most of the respondents is through ‘Friends & Relatives.
➢ Majority of the Royal Enfield customers are high profile customers. So they purchase
the bike with cash.
➢ Majority of the respondents utilizes their Royal Enfield bike to commute between
office and residence.

14. ➢ Majority of the respondents use Royal Enfield Classic 500 cc to travel 50KM-100KM
per day because of its riding comfort .
➢ Majority of the respondents income fall under 25000-50000 followed by respondents
whose monthly income is 50000-1 Lakh.Royal Enfield is owned by respondents who
fall into the upper middle class or high profile segment of Indian society.
➢ Majority of the customers switched from other competitor brands to Royal Enfield,
because of riding comfort, durability and aesthetics.
➢ Majority of the respondent purchase Royal Enfield to enhance their status/image in the
society or they are very passionate about Royal Enfield.
To Commute
between the
Residence and
Office
47%
To Go arround
with friends
19%
To go for
long rides
22%
To move
around as part
of work
12%
Purpose of use

15. ➢ Majority of the respondents own a four wheeler. Royal Enfield customers are high
profile customers.
SUGGESTIONS AND RECOMENDATIONS
1) Promotional Strategies:
• Advertise for free test rides to the general public. Also encourage door step rides.
• Displaying in major exhibitions and trade expositions.
• By holding regular Royal Enfield owners meet, which will in turn entice the press
directly to give regular write ups in the papers and thus creating attention towards the
company image and its product.
2) Advertising:
i)The print ads will have to be placed in those magazines that reach the target market. For
e.g. magazines like automobile magazines, magazines targeted at youth etc… the print ads
should be curiosity creating, which would entice the public to take initiative and come to
the dealer and find out more about the company & its products.
ii)Nowadays net advertising have also become popular and gained importance. The net
advertising should be placed in some of the most popular websites like yahoo.com,
indiatimes.com, and rediff.com. Etc… the net advertising should be attractive.
Customers
who have
four wheelers
80%
Customers
who don't
have 4
wheelers
20%
Four wheeler owner on not

16. 3) To encourage Riders Club Membership in Andhra Pradesh and Orissa so that
customers to have a real experience of their bike.
4) As now the on road presence of Royal Enfield bikes are increasing and its demand is
increasing day-by-day company should establish a new plant as soon as possible ,as many
customers drop out due to long waiting periods (standard, electra and thunderbird 3-
4months and Classic 350cc and 500cc 7-9months waiting period)
5)Weak follow up from dealership -It is observed during the study that Royal Enfield
should improve on the follow up calls to retain the prospective customers.
.