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1. RAJVARDHAN SINGH 161440 1 2. INTRODUCTION •Oldest surviving motorcycles •Manufactured bicycles, lawn mowers & motorcycles •Used in World War II •Founded in 1955 as Enfield India •In 1994 Enfield India was bought over by Eicher Motors Limited 2 3. HISTORY • Royal Enfield is the corporate house under which the Royal Enfield Motorcycle Company was founded in 1893. • The first Royal Enfield motorcycle was built in the year 1901. • Similar to its competitors such as BSA and Triumph, the Enfield Cycle Company started its business as a weapons manufacturer, mostly famous for the Enfield rifle. This legacy is echoed in the company logo which is a cannon, and their motto, “Made Like A Gun”. 3 4. PARENT COMPANY Incorporated in 1982, Eicher Motors Limited is the flagship company of the Eicher Group in India and a leading player of the Indian automobile industry. • VE COMMERCIAL VEHICLES VE Commercial Vehicles Limited (VECV) is a joint venture between the Volvo Group and Eicher Motors Limited. In operation since July 2008, the company includes the complete range of Eicher branded trucks and buses, VE Powertrain, Eicher’s components and engineering design services businesses, the sales and distribution business of Volvo Trucks as well as aftermarket support to Volvo Buses in India. • EICHER POLARIS In 2012, Eicher Motors Limited signed a strategic joint venture agreement with US based Polaris Industries Inc., to design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. The JV will allow Eicher Motors Ltd. to enter into a new vehicle segment. In 2013, the JV company- Eicher Polaris Pvt. Ltd (EPPL), set up it’s manufacturing facility in Jaipur, Rajasthan. 4 5. 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 BEGINNING 5 6. BRAND LOGO MADE LIKE A GUN, GOES LIKE A BULLET LOGO 6 7. Customer Mindset: •Awareness: high brand equity & strong brand loyalty. •Associations: associated with power, strength, luxury, ruggedness. •Attitudes: perceived as a proud asset. •Attachment: lifetime loyal customer. Market Performance: •Price Premium: justified price due to engine capacity and uniqueness •Price Elasticity: even if the price of the product increases the demand will remain same. BRAND VALUE 7 8. BRAND POSITIONING • A powerful motorcycle for bike adventurers • Masculine bike • Power engine bikes in reasonable price bracket • Rugged • Durable product • Great performance • Heritage of over a hundred years 8 9. The Bullet has always been associated with independence, self expression, power and passion. Even the marketing campaign ‘Leaving Home’, ‘Selfism’ focussed on the same aspect as it showed a boy cutting his umbilical cord to ride his dream bike. BRAND IMAGE 9 10. MARKETING STRATEGY •Royal Enfield has done only two campaigns on TV “Shaan Ki Sawari” and “‘Jab Bullet Chale Toh Duniya Rasta De”. •Has also been featured in many movies. •Royal Enfield Rider Mania. •Royal Enfield also organizes Rider Mania in Goa each year in December . Branding through Royal Enfield Riders Club and Communities : Royal Enfield heavily promotes the Club culture amongst its riders. 10 11. MARKETING STRATEGY Branding through Film Industry Seen in many Bollywood and Hollywood movies like “Jab Tak Hai Jaan’, “Zindagi Na Milegi Doobara”, “Curious Case Of Benjamin Button”, etc. 11 12. Best trip story writing contest: - Encourage people to go on rides and express their stories via blog. - Once they purchse a bullet, they are updated with all the activities done by Royal Enfield. - Royal Enfield has effectively used the online media to bond all the bullet riders together and spread the feeling of brotherhood. SOCIAL MEDIA MARKETING 12 13. Rider Mania (RM) is an event hosted by Brotherhood of Bulleteers Motorcycling Consortium (BOBMC) member clubs in India every year. It is the annual gathering of Indian Royal Enfield motorcycle owners. Its popular rides are :- Tour of Rajasthan, Tibet, Bhutan, Nepal; Unroad Kerela, Himachal; Himalayan Odyssey, Reunions & Escapades. EVENTS 13 14. EVENTS Royal Enfield, India is also the most consistent participant in the India’s biggest bike festival, INDIA BIKE WEEK, under the name INDIA BULL RIDERS, which is one of the biggest biker group in India to ever participate in IBW. indiabullriders.com 14 15. POPULAR CULTURE 15 16. CSR 16 The Company has constituted a Corporate Social Responsibility Committee and has framed a Corporate Social Responsibility Policy and identified Healthcare, Children’s education, Road safety and Environmental sustainability as some of the key areas. 17. PRODUCT LENGHT Royal Enfield has a single product line, manufacturing only motorcycles. 17 18. PRODUCT DEPTH Royal Enfield currently offers: • Bullet Standard, Electra, Thunderbird & Classic in both 350cc & 500cc variants. • Classic Chrome, Desert Storm, Squadron Blue & Forest Green/ Black in only 500cc variants. •Continental GT in a single 535cc variant & Himalayan in a single 411cc variant. 18 19. Royal Enfield distributes its motorcycles only through dealers who act as distributers of motorbikes in a specified area which acts as producer to dealer channel. PRODUCT DISTRIBUTION 19 20. Available in all branded Royal Enfield Stores, RE followed the promotion strategy first initiated by Harley Davidson Motorcycles. The various bikers merchandise available such as: helmets, gloves, jackets, boots, belts, protective gear, etc. ROYAL ENFIELD MERCHANDISE 20 21. STRENGTHS • No Competition in 350cc and 500cc segments of the market. • Proven product durability • Customer retention WEAKNESS • High prices • Less advertisement • Little/negligible product innovation OPPORTUNITIES • Introduction of motorcycles in entry and executive segments of the market. • Encourage the sales with advertisement. • Introduce customer relationship management. • Innovation of products • Offer better finance schemes THREATS • Movement of industry towards premium segments of 250cc • Entry of exclusive foreign players • Entry of other players in 350cc and 500cc segments of market. SWOT ANALYSIS 21 22. •Bajaj Auto Limited •Hero Motor Corp (Hero Honda) •TVS •Suzuki •Harley Davidson Motorcycles (smaller engine capacity bikes – up to 1000cc) •Yamaha COMPETITIVE ANALYSIS 22 23. PRODUCT SEGMENTATION • RE has a niche segment in motor bikes with a demand of about 2.5 L bikes per year. It comes in premium and cult category with a niche market aimed at lifestyle bikes among customers. Leisure Bike Cruiser Bike 23 24. PRODUCT TARGETING Latest machine introduced by Royal Enfield Motorcycles is for those bikers who want to go a little more off the limit. As it says: “Built for all roads. Built for no roads”, it mainly targets the off-road biker. Targeting bikers in the age group of 25-45 years of age. 24 25. The Royal Enfield Continental GT is the lightest, fastest, most powerful Royal Enfield in production. It’s a machine with a story, a nod to motorcycling’s finest hour; a painstaking collaboration. It is also the best expression yet of a cultural phenomenon that has simply refused to fade away - the café racer. PRODUCT POSITIONING Royal Enfield has always positioned itself as a manufacturer who produces bikes associated with the social/status symbol. 25 26. NEW PRODUCT 26 Royal Enfield started its journey from a town called Redditch, 15 miles south of Birmingham. With these colours, Royal Enfield added a punch to its history and riding heritage. 27. • Price elasticity: Moderate price elasticity. (since they have monopoly in the cruiser bike market) • Market shares: In the premium segment of motorbikes, Royal Enfield has nearly 95% in 350, 500 cc motorbikes, and now, they are trying to attack the higher segments of this category (700, 1500 cc bikes) • Expansion success: The annual capacity was about 60k units per year, but due to exponentially increasing demand, RE started to think about new expansion process, building new factory having capacity of 1.5 L per annum. (with capital of 1.5 billion) MARKET PERFORMANCE 27 28. Total sales in the domestic market during the April- December period of the ongoing fiscal was at 4,88,262 units as against 3,59,968 units in the year-ago period, up 36 percent. Total exports in the nine-month period grew by 78 percent to 10,545 units from 5,943 units a year ago. SALES OVERVIEW 28 29. EVOLUTION OF ROYAL ENFIELD 29 30. THANK YOU 30
