A

STUDY
ON
BRAND IMAGE
AT
ROYAL ENFIELD MOTORS
Submitted
By
J DINESH
H.T.NO: 1415-18-672---
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD
OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

PENDEKANTI INSTITUTE OF MANAGEMENT
IBRAHIMBAGH
(Affiliated to Osmania University)
2018-2020
INTRODUCTION
Brand image is the current view of the customers
about a brand. It can be defined as a unique
bundle of associations within the minds of target
customers. It signifies what the brand presently
stands for. It is a set of beliefs held about a
specific brand. In short, it is the consumers’
perception about the product, service and the
company. It is the manner in which a specific
brand is positioned in the market. Brand image
conveys emotional value and not just a mental image. Brand image is nothing but an
organization’s character. It is an accumulation of contact and observation by people external
to an organization. It should highlight an organization’s mission and vision to all. The main
elements of positive brand image are- unique logo reflecting organization’s image, slogan
describing organization’s business in brief and brand identifier supporting the key values.
Brand image is the overall impression in consumers’ mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they
form brand image. An image is formed about the brand on the basis of subjective perceptions
of associations bundle that the consumers have about the brand. In automotive industry,
Volvo is associated with safety and Royal enfield motors is associated with reliability.

The idea behind brand image is that the consumer is not purchasing just the product/service
but also the image associated with that product/service. Brand images should be positive,
unique and innovative. Brand images can be strengthened using brand communications like
advertising, packaging, word of mouth publicity, other promotional tools, etc.

Brand image develops and conveys the product’s character in a unique manner different from
its competitor’s image. The brand image consists of various associations in consumers’ mind
- attributes, benefits and attributes. Brand attributes are the functional and mental connections
with the brand that the customers have. They can be specific or conceptual. Benefits are the
rationale for the purchase decision. There are three types of benefits: Functional benefits -
what do you do better (than others ),emotional benefits - how do you make me feel better
(than others), and rational benefits/support - why do I believe you(more than others). Brand
attributes are consumers overall assessment of a brand.
Brand image has not to be created, but is automatically formed. The brand image includes
products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually
brand content. When the consumers purchase the product, they are also purchasing it’s image.
Brand image is the objective and mental feedback of the consumers when they purchase a
product. Positive brand image is exceeding the customers expectations. Positive brand image
enhances the goodwill and brand value of an organization.

NEED OF THE PROJECT

The basic need of the project is to understand the service of ROYAL ENFIELD
MOTORS products and identify what are the gaps in service. The idea behind the
projects is to identify what is the brand and service range of ROYAL ENFIELD
MOTORS products in Hyderabad market.

Company wants to know whether service process working properly or not? And
are retailers satisfied with the service practice? Company also wants to distinguish the
availability of ROYAL ENFIELD MOTORS products and visibility in market
through promotional materials.

The need of project arises from company to improve its service practice in order
to have better market placement in Hyderabad market. So, for that they needed in-
depth analysis of the problems which would also generate some fresh ideas for the
improvement.

SCOPE OF PROJECT

The study is conducted within Hyderabad town and its various parts. Hyderabad
was divided in two regions which are one town and two Town. The survey is
conducted in Automobile shops situated in all regions which are exclusive in sales of
ROYAL ENFIELD MOTORS.
OBJECTIVES
 To study brand image with respect to Royal Enfield bikes

 To know the top brands preferred by customers among the various available

 To know the brand image level of Royal Enfield bikes

 To know the various criteria for choosing particular brand of bike.

 To find the factors like Brand Name, Safety, Comfort, Price, Maintenance,

Aesthetics, etc., that influencing the buying behavior of customers while choosing a

particular companies bike.

 To analyze the expectations of the customers.

 To know the opinion about brands of Royal Enfield

RESEARCH METHODOLOGY
Definition:
Research methodology is the specification of the method of acquiring the information
needed to the structure or to solve the problem at hand.
It is the pattern of the framework of the project that stipulates what information is to
be collected, from which source and by what method.
Primary Source Data:
A questionnaire was prepared helped in gaining an insight view of the factors
effecting the customer needs and related issues. The addresses of various customers were
given and with the help of the questionnaire prepared, I need to find out the first hand
information regarding the share of the Royal Enfield motors in every segment in the market
and the satisfaction level of each customer. Further I need to find out the future plans of the
customer regarding the purchase of the Royal Enfield motors products.
Each day I met 5 customers for 4 weeks the sample size of 100 respondents was
decided upon.
Secondary Data:
Secondary data is the annual report of the company and the official.
Research Objective:
SAMPLING
Sampling Procedure:
The sampling technique use here was Quota Sampling, which is one of the
most commonly used non-probability sample design.
Sampling Unit:
The target population from which the sample is chosen is owners of all brands
of bikes.

Sample Size:
The sample of 100 from the target population was chosen.
Analysis Used:
The data collected in form of questionnaires was tabulated and analyzed
using basic statistical method percentages.
LIMITATIONS

 As the time given for the completion of the project was limited.
 The survey was restricted to Hyderabad and Secunderabad only.
 They may be few opinions which might have been missed out.
 The Time Period Of Project Is 45 Days.
 Though The Customers Wanted To Give Information They could not Give
As It Wastes Their Business Time.
 The Accuracy Of The Answers Depends Upon The Mode Of Interest Of
Respondents.
 Though the customers wanted to give information they could not, as they felt
it takes away their business time.
 The accuracy of the answers depends upon the mode of interest of
respondents.
 The opinions of the sample may or may not depict the exact opinions of the
total population.
REVIEW OF RELATED LITERATURE

Markets:

The concepts of exchange and relationships lead to the concept of a market. A market is the
set of actual and potential buyers of a product. These buyers share a particular need or want
that can be satisfied through exchange relationships.

Marketing means managing markets to bring about profitable customer relationships.

However, creating these relationships takes work. Sellers must search for buyers, identify
must first create a need-satisfying marketing offer (product). It must decide how much it will
charge for the offer (price) and how it will make the offer available target consumers (place).
Finally, it must communicate with the target customers about the offer and persuade them of
its merits (promotion).

Marketing:

Marketing is the business function that identifies customer needs and wants. Creating
customer value and satisfaction are the heart of modern marketing thinking and practice.
Marketing is the delivery of customer satisfaction at a profit.

Many people think of marketing

only as Selling & advertising. But
selling & advertising are only the
tip of marketing. Marketing
means managing markets to bring
about exchanges and relationships
for the purpose of creating value and satisfying needs & wants.

Customer Needs, Wants, and Demands:

The most basic concept underlying marketing is that of human

needs. Human needs are states of felt deprivation. They
include basic physical needs for food, clothing, warmth, and
safety: social needs for belonging and affection: and
individual needs for knowledge and self – expression. These
needs were not created by marketers: they are a basic part of
the human makeup.
 Wants are the form human needs take as they are shaped by culture and individual
personality. An American needs food but wants a Big Mac, French fries, and a soft drink. A
person in Mauritius needs food but wants a Mango, Rice, lentils, and Beans. Wants are
shaped by buying power, wants become demands. Given their wants and resources, people
demand products with benefits that add up to the most value and satisfaction.

BRAND IMAGE

Branding helps buyers in many ways. Brand

names help consumers identify products that might
benefit them. Brands also tell the buyer something
about product quality. Buyers who always buy the
same brand know that they will get the same features,
benefits, and quality each time they buy. Branding also
gives the seller several advantages; the brand name
becomes the basis on which a whole story can be built
about a product special qualities. Building and
managing bands is perhaps the marketer most important task.

Definition of Brand:

The American Marketing Association defines a brand as a name, term, sign, symbol, or
design, or a combination of these, intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of competitors. In essence, a brand
identifies the seller or maker. Whether it is a name, trademark, logo, or another symbol, a
brand is essentially a seller’s promise to deliver a specific set of features, benefits, and
services consistently to the buyers.

Levels of Brand Meaning

Meaning Description Example

Lexus suggests expensive,

A brand brings to mind
Attributes well-built, durable, high-
certain attributes.
prestige vehicles.
 The attribute “durable”
Attributes must be could translate into the
Benefits translated into functional functional benefit “I won’t
and emotional benefits. have to buy another bike for
several years.”

Royal enfield motors stands

for high
The brand says something
Values
about the producer’s values. performance, safety, and

prestige.

Royal enfield motors

The brand may represent a represents Japan

Culture
certain culture. culture: organized, efficient,
high quality.

The branding goes beyond

The brand can project a the vehicle – you find
Personality
certain personality. branding in everything that
Lexus does

The brand suggests the kind

Royal enfield motors
of
User vehicles are more likely to
customer who buys or uses
be bought since 50 Years.
the product for years.
Brand Equity:

Brands vary in the amount of power and value they have in the marketplace. At one extreme
are brands that are not known by most buyers. Then there are brands for which buyers have a
fairly high degree of brand awareness. Beyond this are brands with a high degree of brand
acceptability. Next are brands that enjoy a high degree of brand preference. Finally there are
brands that command a high degree of brand loyalty. Aaker distinguished five levels of
customer attitude toward a brand:

1. Customer will change brands, especially for price reasons. No brand loyalty.
2. Customer is satisfied. No reason to change the brand.
3. Customer is satisfied and would incur costs by changing brand.
4. Customer values the brand and sees it as a friend.
5. Customer is devoted to the brand
Branding Challenges

Branding poses several challenges to the marketer. The first is whether or not to brand, the
second is how to handle brand sponsorship, the third is choosing a brand name, the fourth is
deciding on brand strategy, and the fifth is whether to reposition a brand later on.

Brand-Sponsor Decision

A manufacturer has several options with respect to brand sponsorship. The product may be
launched as a manufacturer brand, a distributor brand, or a licensed brand name. Another
alternative is for the manufacturer to produce some output under its own name and some
under reseller labels. Kellogg, John Deere, and IBM sell virtually all of their output under
their own brand names, whereas Whirlpool produces both under its own name and under
distributors’ names (Sears Kenmore appliances). Although manufacturers’ brands dominate,
large retailers and wholesalers have been developing their own brands by contracting
production from willing manufacturers. Sears has created several names—Diehard batteries,
Craftsman tools, Kenmore appliances—that command brand preference and even brand
loyalty. Retailers such as The Body Shop and Gap sell mostly own-brand merchandise.
Sainsbury, Britain’s largest food chain, sells 50 percent store-label goods, and its operating
margins are six times those of U.S. retailers.
Brand-Name Decision

Manufacturers and service companies who

brand their products must choose which brand
names to use. Four strategies are available,
Once a company decides on its brand-name
strategy, it must choose a specific brand name.
The company could choose the name of a
person (Honda, Estée Lauder), location (American Airlines, Kentucky Fried Chicken),
quality (Safeway, Duracell), lifestyle (Weight Watchers, Healthy Choice), or an artificial
name (Exxon, eBay).

➤ It should suggest something about the product’s benefits. Examples: Beauty-rest,

Priceline.com

➤It should suggest product qualities. Examples: Spic and Span, Jiffy Lube

➤It should be easy to pronounce, recognize, and remember. Examples: Tide, Amazon.com

➤It should be distinctive. Examples: Kodak, Yahoo!

➤It should not bikery poor meanings in other countries and languages.

Example: Nova is a poor name for a bike to be sold in Spanish-speaking countries because it
means “doesn’t go.”
Branding Strategy

Some analysts see brands as the major enduring asset of a company, outlasting the company’s
specific products and facilities. John Stewart, co founder of Quaker oats, once said, “If this
business were spilt up, I would give you the land and bricks and mortar, and I would keep the
brands and trade marks, and I would fare better than you.

Brands are more than just names and symbols, brands represents consumers perceptions and
feeling about a product and its performance-- everything that the product or service means to
consumers. As one branding expert suggests, “Ultimately, brands reside in the minds of
consumers”.

A powerful brand has high brand equity. Brand equity is the positive differential affects of
knowing the brand name, on which the consumer response to the product or service. A
measure of a brand’s equity is the extent to which customers are willing to pay more for the
brand. A brand with strong brand equity is a very valuable asset. Brand valuation is the
process of estimating the total financial value of brand. High brand equity provides a many
competitive advantages. A powerful brand enjoys a high level of consumer brand awareness
and loyalty. Because consumers expect stores top bikery the brand, the company has more
leverage in bargaining with resellers.

Brand Strategy Decision

A company has five choices when it comes to brand strategy. The company can introduce
line extensions (existing brand name extended to new sizes or flavors in the existing product
category), brand extensions (brand names extended to new-product categories), multibrands
(new brand names introduced in the same product category), new

brands (new brand name for a new category product), and co-brands (brands bearing two or
more well-known brand names).

Line Extensions: Line extensions introduce additional items in the same product category
under the same brand name, such as new flavors, forms, colors, added ingredients, and
package sizes. The automobiles Company Royal enfield motors introduce Corolla Altis after
the great sucess of Royal enfield motors Corolla.

Brand Extensions: A company may use its existing brand name to launch new products in
other categories. Autobytel.com, a pioneer of Internet-based bike sales, used brand extensions
to introduce automotive financing, insurance, and bike repairs on its Web site. A recent trend
in corporate brand-building is corporations licensing their names to manufacturers of a wide
range of products—from bedding to shoes.

Multibrands A company will often introduce additional brands in the same product
category. Sometimes the firm is trying to establish different features or appeal to different
buying motives. Multibranding also enables the company to lock up more distributor shelf
space and to protect its major brand by setting up flanker brands. For example, Seiko uses
one brand for higher-priced watches (Seiko Lasalle) and another for lower priced watches
(Pulsar) to protect its flanks. Ideally, a company’s brands within a category should
cannibalize the competitors’ brands and not each other. At the very least, net profits from
multibrands should be larger despite some cannibalism.

New Brands When a company launches products in a new category, it may find that
none of its current brand names are appropriate. If Timex decides to make toothbrushes,
it is not likely to call them Timex toothbrushes. Yet establishing a new
brand name in the U.S. marketplace for a mass-consumer-packaged good can cost
anywhere from $50 million to $100 million, making this an extremely critical
decision.
Co-brands A rising phenomenon is the emergence of co-branding (also called dual
branding), in which two or more well-known brands are combined in an offer. Each
brand sponsor expects that the other brand name will strengthen preference or purchase
intention. In the case of co-packaged products, each brand hopes it might be
reaching a new audience by associating with the other brand.
Co-branding takes a variety of forms. One is ingredient co-branding, as when Volvo
advertises that it uses Michelin tires or Betty Crocker’s brownie mix includes Hershey’s
chocolate syrup. Another form is same-company co-branding, as when General Mills
advertises Trix and Yoplait yogurt. Still another form is joint venture co-branding, as in
the case of General Electric and Hitachi lightbulbs in Japan and the MSNBC Web site
from Microsoft and NBC. Finally, there is multiple-sponsor co-branding, as in the case of
Taligent, a technological alliance of Apple, IBM, and Motorola.

Shopping around can be time- and energy-consuming, and consumers do not always possess
enough product knowledge to ensure the best buy. Under such circumstances, consumers
usually go by well-known brands, which may result in higher costs but requires less research
efforts. Thus, brand image not only affects how consumers view a product but has the benefit
of lowering purchase risks (London et al. 1998). Brand management has become increasingly
important, given the rapid change of the global market and elevation of competition.
Effective brand management creates clear product differentiation, consumer preference and
loyalty, resulting in broadening market share. Aaker, (1991) believes brand establishment and
management should be not only one of the operating focuses for major industries but viewed
as a source of competitiveness. For consumers, a brand provides a certain degree of product
guarantee.
3.2 COMPANY PROFILE

HISTORY OF THE ROYAL ENFIELD

Mid 19th century England The firm of George Townsend & Co. opened its doors in the tiny

village of Hunt End, near the Worcestershire town of Redditch. The firm was specialized in

sewing needles and machine parts. In the first flush of enterprise, flitting from one

opportunity to another, they chanced upon the pedal-cycle trade. Little did they know then

that it was the beginning of the making of a legend. Soon, George Townsend & Co. was

manufacturing its own brand of bicycles. And in 1893 its products began to sport the name

‘Enfield’ under the entity Enfield Manufacturing Company Limited with the trademark

‘Made Like a Gun’. The marquee was born.

INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors (formerly Enfield of India)

FOUNDED 1893, as Enfield Manufacturing Co. Ltd.

DEFUNCT 1971

HEADQUARTERS Redditch, Worcestershire, England

KEY PEOPLE Founders Albert Eadie and Robert Walker Smith

PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

PROFILE OF THE ROYAL ENFIELD

Royal Enfield is the makers of the famous Bullet brand in India. Established in 1955, Royal

Enfield (India) is among the oldest bike companies. It stems from the British manufacturer,

Royal Enfield at Redditch. Royal Enfield has its headquarters at Chennai in India. Bullet

bikes are famous for their power, stability and rugged looks. It started in India for the Indian

Army 350cc bikes were imported in kits from the UK and assembled in Chennai. After a few

years, on the insistence of Pandit Jawaharlal Nehru, the company started producing the bikes

in India and added the 500cc Bullet to its line. Within no time, Bullet became popular in

India.

Bullet became known for sheer power, matchless stability, and rugged looks. It looked tailor-

made for Indian roads. Motorcyclists in the country dreamt to drive it. It was particularly a

favorite of the Army and Police personnel. In 1990, Royal Enfield ventured into collaboration

with the Eicher Group, a leading automotive group in India, in 1990, and merged with it in

1994. Apart from bikes, Eicher Group is involved in the production and sales of Tractors,

Commercial Vehicles, and Automotive Gears. Royal Enfield made continuously

incorporating new technology and systems in its bikes. In 1996, when the Government of

India imposed stringent norms for emission, Royal Enfield was the first motorcycle

manufacturer to comply. It was among the few companies in India to obtain the WVTA

(Whole Vehicle Type Approval) for meeting the European Community norms. Today, Royal

Enfield is considered the oldest motorcycle model in the world still in production and Bullet

is the longest production run model.

and instantly found a market among the many that wanted a Bullet, but were diffident about

handling it’s weight and size. The Mini Bullet too was introduced this year. This motorcycle
was a 200cc two stroke sporting ‘contemporary’ design. Enfield India attempted to reach out

to the young market, providing them with a zippy, reliable and economical two-stroke.

TOUGH TIMES AHEAD (1981 - 1990)

1983 Here comes the Lightweights-Like the adage that goes, "when the going got tough,

that's when the tough get going". Enfield India got squarely into the fray with a slew of

lightweight machines. The 50cc Silver Plus step-through and Explorer motorcycle are

launched. Powered by the Zundapp-engineered 50cc, 6.5hp two stroke motors, these bikes

redefined the entry-level segment. The Silver Plus, initially a two-speed and then later a three

speed, found a ready market not only among the young office going male, but among an

increasing number of women who found the step-through design convenient. The Explorer,

with its contemporary bikini fairing and 'fastback' tailpiece. Both bikes sported alloy wheels,

a first in India. Close on the heels of the little wonders came the Fury 175. Powered by a 175

Zundapp two-stroke engine with a five-speed gearbox, this refreshingly quick motorcycle

came fitted with a hydraulic disc brake. Again a first in the country. And a bike, many feel,

much too early in INDIA.

1984 Brand New Vintages-The 80s also saw the Bullet in many different avatars. The

Deluxe models appeared, in resplendent chrome and metallic colors, and 12 volt electrical

were offered as an option, to aid in brighter lighting and easier starting. It was also the year

when Enfield India grew confident enough about their flagship product to begin sending

'coals back to Newcastle'. Owing to their status as 'brand new vintages', Enfield Bullets found

a strong niche market in the UK and Europe, among people looking to come back to

motorcycling.
\