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Pest Analysis of Royal Enfilde

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A STUDY ON “CUSTOMER SATISFACTION TOWARDS ROYAL ENFIELD BIKES IN HSR SERVICES” IN BENGALURU.
A Project Report is Submitted by GANESHA B USN: 1SI15MBA25 Under the Guidance of Internal Guide External Guide DR.V.V.Mani Asst.Professor PGDMS &RC , SIT Tumkur

SIDDAGANGA INSTITUTE OF TECHNOLOGY

TABLE OF CONTENTS SL. NO | PART A | PAGE NO | | Executive summary | | 1. | Industry Profile | | 2. | Company Profile | | 3. | Mc Kinsey`s 7`s framework | | 4. | SWOT Analysis | |

SL.NO | PART B | PAGE NO | 1. | General introduction | | | * Statement of the problem | | | * Research design of the study | | | * Objectives of the study | | | * Scope of the study | | | * Methodology | | | * Limitations of the study | | 2. | Analysis ,interpretation of results, Findings & Suggestions | | 3. | Conclusions | | 4. | Annexure | | 5. | Bibliography | |

PART-A 1. INDUSTRY PROFILE :- THE FIRST MOTARCYCLE We are going to begin by looking at the first bikes. They didn’t work very well and they were not very fast but moved with being drawn by a horse or being pedaled. When you look at a motorcycle today, have you ever thought what the old bikes were like? Were they easy to ride? How fast did they go? Were they comfortable? To answer all these questions, we have got to go quite a long way back say about 100 years. The world was very different in those days and there must have been a feeling of great excitement. There was a great interest in science and engineering and almost every week, some fantastic new invention appeared. First there were gaslights and then electricity and new cures for many kinds of illnesses were always being announced this was period when people started thinking about how to travel quickly and safely.

THE BRITISH BIKES:-
Today we won’t see many British bikes on the road but most of the older bikes were make in Great Britain, which had its name and fame. Now we see very few of British Bikes. What went wrong?
In 1900, bikes were not very good. They were hard to start, they had poor brakes and did not have much power but everyone thought they were marvelous. For the first time, person could have his own individual way of getting about. He had personal transport, which he could use the moment he wanted to. Above all else, these first motorcyclists felt the sense of freedom, which a bike gave them.
The motorcycle manufacturers felt the same excitement. New designs appeared almost every day. Some were excellent and others silly but each factory learnt from others and bikes got better and better in just a few years. Then the First World War came in1914, and the whole world changed. Bikes made in this first period, from 1885 until the end of 1914 are called veterans and the riders who are reliving how the first motorcyclists rode are still using many today. NATURE OF THE INDIAN MARKET:- In initial years , entry of the foreign company`s ,expansion , choice of products (capacity mix & technology) all critical areas of functioning of company`s were effectively controlled by state government. In the year 1991 the major set of reforms was launched in response to macroeconomic crisis faced by the country`s economy. These policies made weaker industries to make way to new entrants & superior products, this increase the competition among the brands on the basis of product attributes.

MARKET SHARE IN TWO WHEELER INDUSTRIES:-

KEY PLAYERS IN TWO WHEELER INDUSTRY`S The major players in the Indian two wheeler market are, * Hero motors * Honda Motors Ltd, * Bajaj Auto Ltd * TVS Motor Company Ltd The Other Key players are, * Yamaha Motors India Ltd, * Suzuki Motors Ltd

2 .COMPANY PROFILE:-

ROYAL ENFIELD INDIA LTD

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

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

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

HISTORY OF THE COMPANY The story started when R.W smith and Albert Eddie take over the Townsend cycles company of Enfield Road in Red ditch, In 19th century, the firm which was owned by George Townsend & his firm was Specialized in sewing needles & machine parts later George & Co begin to manufacture its own brand of cycles.

1891 1893

* 1898 * 1901 * 1909 * 1914 1928 * 1930 * 1932 * 1939 1949 2014
ISO CERTIFICATIONS
Royal Enfield is the only motorcycle company to be certified ISO 1400& ISO 9001for environment & quality purpose. The Company has established as a leaders in Indian two wheeler industry .The company also offer equal opportunity employer & creating exciting workplace environment enabling unique opportunity to creation of these legendary machines PRODUCTS OF ROYAL ENFIELD THUNDERBIRD 500 * Powerful 500cc engine * 4storke,aircooled * fuel injection also retain its flagship model of Royal Enfield. THUNDERBIRD 350 * 350CC engine * Single cylinder,70mm*90mm * Telescopic,41mm forks * 18 inch wheels and is currently the flagship model of Royal Enfield

ELETRA DELUXE:- * 499CC * Electric-kick,84.0mm*90.0mm * Telescopic,35mm forks,130mm travel * This is the youngest highway cruiser in the world. * Rs1,01,000 * Electra deluxe inspired the old” Machismo” * Related to Royal Enfield ;-Bullet Electra EFI Bullet Electra Twinspark

CLASSIC 350:- * Many more Colours available in this product like black,ash,chestnut,silver * Smaller twin of the classic 500 * 153mm drum, single lead internal expanding * 12volt-dc electrical system * the greater power and vintage feel of the bike.

BULLET 500:- * superior power delivery and improved fuel economy * 499cc engine * 280mm disk brakes * forest green, black ,marsh grey colours will available DESERT STORM 500:- * Rs1,76,002 * 499cc, * 32kmpl 27.20bhp * 187kg * Style some additions or customization it became awesome

BATTLE / FOREST GREEN 500 * Model with 500cc engine, * 5 speed gear box, electric start and TCI ignition. * Attained the UCEengine in 2013 and is known as Forest Green/Black.

CONTINENTAL GT * This bike is known for Café Racer styling with single seating capacity * Came with fuel injection , electronic fuel gauge, digital console, projector headlamps, * twin gas charged shock absorbers with adjustable preload. * This bike is one of the expensive bike in this segment.

HIMALAYAN * This bike is meant for especially for adventurers and bears a retro look * The seating on this bike is comfortable and can easily carry two adults. * This bike makes you more pleasurable with its mounting points for pannier boxes, talground clearance, powerful head lamps, a huge fuel tank, multiple trip meters * this bike ranges Rs 1.5lac to 1.7lac.

ELETRA EFI:- * 5 speed gear box for easy operation * Two colors available like blacj,maroon * Bigger 19inch wire wheels * New version of Enfield electra * Gear box type will manual

MARKETING NETWORK

This thought process has driven Royal Enfield to set up has a wide network of 11 Brand Stores, 180 dealers in all major cities and towns, and over 100 Authorized Service Centre. The Company also exports motorcycles to 42 countries like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany, Argentina and many other countries through 40 importers and over 300 dealers across the globe.

MANUFACTURING Royal Enfield’s manufacturing go through a series of improvements and modernization ,help of numerous automated processes. The Chennai manufacturing facility has received the ISO 9001 certification for managing its operations in a clean safe environment, it also received ISO 14001 quality certification .

AWARDS * Royal Enfield has won the Best Brand award in Apollo Auto India
Awards 2010. * It also won the Viewers Choice Bike of the Year 2009 at Zigwheels.com and Bike of Year above 251cc. * At NDTV Profit Car and Bike Awards 2010,2012-2013 the company has won Motorcycle of the Year above 250cc.
In the same Year at NDTV Profit Car & Bike Awards ,it won the Best PR
Communication Team

INDUSTRY = Motorcycles, Lawnmowers
FOUNDED = 1893
KEY PEOPLE = Albert Eadie& Robert Walker Smith
HEADQUARTERS = Redditch, Worcestershire, England
DEFUNCT = 1971
SUCCESOR = Royal Enfield Motors(formerly Enfield of India) “ROYAL ENFIELD IS THE BRAND FOR the especially in BRAND PEOPLE”

MC KINSEYS 7S FRAMEWORK

STRUCTURE

BOARD OF DIRECTORS * SIDDHARTHA LAL: Managing Director & Chief Executive Officer * S SANDILYA : Chairman EML * M.J SUBBAIAH : Independent Director * PRIYA BRAT : Independent Director * MANVI SINHA : Independent Director * PRATEEK JALAN : Independent Director
MANAGEMENT
* SIDDHARTHA LAL: Managing Director & Chief Executive Officer * LALIT MALIK : Chief Financial officer EML * RUDRATEJ SINGH : President ,Royal Enfield * B GOVINDARAJAN: Chief Operating Officer, Royal Enfield * SUDHAKAR BHAGAVATULA : Chief Information Officer

SYSTEMS:- The daily activities and procedures that staff members engage in to get the job done. The functioning of company in the critical areas were effectively controlled by State Machinery. It also endured modern manufacturing practices like cellular layouts ,Statistical Process controls and flexible manufacturing g systems, the company has made considerable investments in modernizing manufacturing technology and systems.

STYLE:- This motor company manufacturer of bullet motor cycle and a division of 1300 crore Eicher Group, and manufacturing different street motor cycle like new versions of bullet thunderbird, bullet thunderbird, Himalayan etc Royal Enfield will introducing new engine 350cc bullet thunderbird ,both 350cc and 500cc include same technology features. This company increases sales in many more numbers from markets like Gujarat, Rajasthan ,Karnataka, Madhya Pradesh, Andhra Pradesh. This company will introduce radically different in terms of style and usage pattern. The company decision process is mostly participative which means the decision will be taken by both Managing Directors as well as Independent Directors.

STAFF:- Many steps are being taken to improve working conditions for staff and Employees as well. Also with growing popularity of the brand many passionate riders will join the team for development and production.
The Candidate should attend a written test conducted by Recruitment Board as per the schedule for Royal Enfield ,after the written test ,the eligible candidate proceed to next process where the Royal Enfield conduct the Preliminary tests, Interviews, Group discussions as well as many tests before the selection of the candidate.
INTERVIEW EXPERIENCE

GREETING INTERVIEW

ASSISTANT MANAGER,QUALITY CONTROL(2 salaries)—Rs540,000

SENIOR PRODUCT ENGINEER(2 salaries) --Rs406,396

Key stats for royal Enfield * Less than 1 year --8% * 1-4 years --42% * 5-9years --33% * 10-19years --17%

Without any gender discrimination many candidates are joining the company in general functions due to the change in image of Royal Enfield Motorcycles.
.
SKILLS:- Improved supplier follow-up skills , good negotiating skills and wide range of skills are possessed by the employees in Royal Enfield company and working towards the development of the company..

STRATEGY:- This motor company is brand associated with power and royalty. * RE hardly uses advertisements * Cheaper and good designer bikes provide with new advanced features * Fuel averages of RE bikes is lesser compared to others * Shop-floor arrangement * Customer experience * Royal Enfield has come with new strategy with less waiting periods, more frequent launches capacity ramp-up. * The company’ s strategy is to be a significant global player in mid-range segment(300-750cc) of adventure touring motorcycles
In last couple of years ,Royal Enfield has employed many experts of the global motorcycle market from well known motorcycle companies including Triumph Motorcycles Ltd, Ducati Motor Holding and Haley Davidson Inc, as its overseas subsidiaries. Competitors | 1. Hero Motor Corp 2. Bajaj Auto Ltd 3. TVS 4. Yamaha 5. Suzuki 6. Harley Davidson Inc |

SWOT ANALYSIS SWOT |

STRENGTH | 1. The profitability and revenue is high2.Skilled labor force with low costs 3.Established market distribution channel4.Size and scale of parent company 5.Established brand name in the Cruiser Market.6.High emphasis on Research and Development 7. Effective Advertising Capability 8. Exports motorcycles to 31 countries like USA, Japan, UAE, Korea, UK, Bahrain, Uk, Germany, France, Argentina and many other countries. | WEAKNESS | 1. The Weight of the motorcycle is the main issue for some of the customers. 2.In High CC bikes the mileage is the main issue 3.The cost structure is main problem | OPPORTUNITY | 1. Growing economy and demand 2. Constant increase of income level in the country 3. Two-wheeler segment is one of the most growing Industries in the country | THREATS | 1.Strong competition from Indian as well as international brands. 2.dependence on government policies and rising fuel prices 3.better public transport will affect 2 wheelerssales |…...

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