This document provides information about Enigma Motorcycles' plans to launch a new diesel-powered cruiser bike called the Fire Bird. A survey found that many riders are interested in diesel bikes and willing to pay over Rs. 2 lakhs for a high-end cruiser. The Fire Bird will have a 584cc diesel engine and other specifications tailored for long-distance rides. Enigma plans to target high-income urban professionals aged 24-39 in Delhi, Chandigarh and Ludhiana. The bike will be positioned as a premium product comparable to Royal Enfield and Harley-Davidson. Enigma estimates the manufacturing cost per bike to be around Rs. 200,000 and has forecasted sales over time as

1. ENIGMA MOTORCYCLES
BIKE: FIRE BIRD
Ride to Glory !

3. BIKE CATEGORIES

4. History
• Was introduced by Royal Enfield and due to pollution
laws, this bike is no longer produced
• Motorcycles built by Royal Enfield could be bought
with 325 cc single-cylinder diesel engines
• A Saharanpur based company, Sooraj Automobiles
produce diesel motorcycles

5. SURVEY: Conducted Among 146 Bikers
• Which bike do you currently own?
(Scooty / City Bikes / Racer / Cruiser)
• How much are you ready to pay for a high-end
cruiser bike?
(75,000 / 1,00,000 / 1,50,000 / 2,00,000+)
• Which is the most important aspect of the bike for a
long ride?
(Comfort / Mileage / Low Maintenance)

6. Results of the Survey Conducted

7. Inferences from Survey
• India is one of the biggest market for the motorcycles
industry
• Majority of Indians (especially youngsters) prefer bikes over
cars.
• Around 85% only care about the model of the bike and not
much about the Brand
• 70% riders would be interested in diesel bikes
• 27% of everyday bikers are ready to spend more than 2 Lakhs
INR for a high-end cruiser bike
• Major Age Group Target : 24 – 39
These factors suggest that launching a Diesel powered bike

8. DIESEL BIKE CONCEPTS
Diesel Fuel
DELHI Fuel Prices
• Much cheaper than petrol at
the time, and of more reliable
quality.
• Use of catalytic converter
which will help reduce
pollution upto 40%
BIKE
Milage(Km/Ltr)
Source : http://mypetrolprice.com
Diesel(Rs/Ltr)
FIRE BIRD
50
Royal Enfield
25 -
Petrol(Rs/Ltr)
Cost Per Km
52.54 -
1.05
72.4
2.9

9. DIESEL BIKE SPECIFICATIONS
ENGINE
• Type:
liquid cooled, normally aspirated, 584cc (36 cu in)
double overhead cam single with four valves per cylinder.
• Fuel Injection: Diesel fuel supply is through a special Fuel Injection unit and single injector
• Power:
28 bhp at 5500 rpm
• Torque:
1500 and 7000 rpm.
BRAKES & TYRES
•Tyres Fr.
•Tyres Rr.
•Brakes Front:
•Brakes Rear:
100/100 - 19
200/200 - 18
280mm Disc, 2-Piston caliper
153mm Disc
ELECTRICALS
•Electrical System 12 volt - DC
•Battery 12 volt, 14 Ah
•Head Lamp
60/55 W, HALOG

10. Added Advantages
• Comfortable even after long hours
• Direct Selling (Helpful staff and 5 dealers – No
intermediaries)
• 2 years service warranty
• Auto Start + Kick Start feature

11. Demand
• Non-existent demand — Consumers may be
unaware of or uninterested in the product.
• Latent demand — Consumers may share a strong
need that cannot be satisfied by an existing

12. Factors affecting Demand
• Due to change in the lifestyle of the majority of
youth population we are expecting the increase in
business of Enigma.
• Rising Petrol Prices will create a higher demand for
Enigma.
• Maintenance cost of Diesel Bikes would be higher as
compared to Petrol Bikes

13. Demand forecasting

14. COMPETITORS
• ROYAL ENFIELD
• RAJPUTANA CUSTOMS
• HARLEY-DAVIDSON
• IMPORTED CRUISER BIKES

15. Competitors’ Analysis
Royal Enfield
Harley-Davidson
Product
Bullet 500cc
Fat Bob 500cc
Place
Two segments:
Metropolitans
Small Cities
North India
Price
1,15000Rs-180000Rs
6,00,000Rs-30,00,000Rs
Advantage
Brand Image
Status Symbol
Trust
Brand Image
World Leader
Dream Bike
Source : AutoCar India

16. KEY CONSUMER MARKETS (B2C)
• Consumer Markets: Developing a superior product,
ensuring its availability and backing it with engaging
experiences and reliable service.
• GOODS, SERVICES and EXPERIENCES are Marketed

17. Segmentation
• NICHE SEGMENT
• DEMOGRAPHIC:
▫ Gender
▫ Age
▫ Income
• BEHAVIORAL:
▫ User Status
▫ Usage Rate
▫ Attitude Towards the Product

18. Occupation of the Illiterat
Chief
Wage e
Earner
School School SSC
up
to – 5th to HSC
4th
/ 9th
literate
but no
formal
schooli
ng
/ Some
college
but not
graduate
Graduate
Post
Graduate
general
/ Graduate /
Post
– Graduate –
professional
Unskilled
E2
E2
E1
D
D
D
D
Skilled workers
E2
E1
D
C
C
B2
B2
Petty traders
E2
D
D
C
C
B2
B2
Shop owners
D
D
C
B2
B1
A2
A2
Businessm Non
en
/
Industriali 1 – 9
sts with
10 +
D
C
B2
B1
A2
A2
A1
C
B2
B2
B1
A2
A1
A1
B1
B1
A2
A2
A1
A1
A1
Self employed
D
D
D
B2
B1
A2
A1
Clerical
D
D
D
C
B2
B1
B1
Supervisory
D
D
C
C
B2
B1
A2
Officers / Executives C
– Junior
C
C
B2
B1
A2
A2
Officers / Executives B1
– Senior
B1
B1
B1
A2
A1
A1

19. • High Income Group (HIG) consumers continue to enlarge and
spend over 40% of their monthly income on some of the
world's largest luxury brands
• Delhi ranks first in spending most on luxury brands followed
by Mumbai (2nd), Ahmedabad (3rd), Chandigarh (4th),
Kolkata (5th), Bangalore (6th), Chennai (7th) and Dehradun
(8th), says DS Rawat, secretary general of ASSOCHAM.
• Urban households compose only 9 per cent of the lowest
income quintile, but represent the majority (56 per cent) of
the top income quintile

20. Market Targeting
•
•
•
•
•
Super Premium Segment
High disposable income
Technologically oriented and Status oriented
Large potential market :Long distance bike riders
Evaluating and Selecting the Market Segments
▫ SINGLE-SEGMENT CONCENTRATION

21. Market Targeting : POPULATION
• Population in the age of 20-35 in
Delhi, Haryana and Chandigarh
region is 9413661.
• Percentage of motorcycle
owners is 38.5% & 39.5% in rural
and urban respectively
Source : Hindustan Times

22. POSITIONING
• Defence Forces
• Bike riders who ride for pleasure
• Point of parity :
Its looks and feel are similar to Harley-Davidson which is the
world leader
• Point of difference :
Engine would be diesel powered and one of its kind

23. Marketing Mix
Product
Diesel powered cruiser Bike
Added value: comfort and mileage
Choice of colour

24. Price
• Four ways to calculate prices:
▫ Cost-plus pricing
▫ Target return pricing
▫ Value-based pricing
▫ Psychological pricing
•
Various price schemes for military employees.
•
MoU with PNB: Which will offer motorcycle financing
for Enigma bikes at 9% in 1st year and 12% for period
of 6 years.

25. Pricing Methods

26. PRICE VOLATILITY

27. Aluminium Consumption Per Capita

28. JCP Aluminium Price Forecast to
2040 (US cents a pound)

29. COST PER BIKE (Estimate)
S.NO
PART
1 ENGINE
2 CHASIS
3 SUSPENSION
4 BRAKE AND BRAKE CALIBRE
5 FREE SERVICING
6 WHEEL RIM
7 TANK
8 MUDGUARD
9 HEADLAMPS
10 SADDLE
11 COLOUR PAINT
12 METER INDICATORS
13 DESIGNER HELMET
14 FRONT FORK
15 SIDE PANEL
16 MIRROR
17 LEVER
18 GEAR BOX
19 BATTERY
20 LABOUR
21 LOGISTICS
22 EXHAUST
23 TYRE
TOTAL
COST
30,000
24,000
18,000
7,000
10,000
7,500
20,000
3,000
10,000
1,000
10,000
700
5,000
4,500
2,000
1,000
8,000
10,000
3000
16,000
5,000
4,000
5,000
200,000
Expenses (Estimate)
Cost
1) Raw Materials
100,000,000
2) Land + Machinery
500,000,000
3) Government Approvals+ Tax
50,000,000
4) Miscellaneous
100,000,000
5) Advertisements + Promotion
100,000,000
TOTAL
85,000,000

30. Promotion
Based on Print and Outdoor advertisements
Motorcycles are mostly purchased during warmer months
and festival seasons.
•
•
•
•
•
Road Trips
Sponsoring ROADIES (1 EPISODE)
Feedback from Professional Bikers
Radio Competitions
Bikes Roaming in Selected Areas in the City
• Bike Accessories: Helmet, Jackets, watch etc.

31. Place
▫
-
Showrooms in 3 Cities as a startup :
Delhi
Chandigarh
Ludhiana
▫
Word-of-mouth
▫
Websites, blogs and Facebook page

32. Possible Strategies
• Make alliances with some local bike companies to
produce bikes at lower manufacturing cost and get a
better margin.
• Expand into Foreign Markets
• Product Development for younger market

33. INTENSIVE STRATEGIES
• Market Penetration (If we are able to provide
customer satisfaction then expand throughout India)
• Product Development (Expand the motor cycle
segment to younger generation and females)
• Market Development (If successful in India then
starting new plant in Asian Countries)

34. Plan
•
•
•
•
•
Test Launch at 3 targeted cities
Promotional Event at Buddh International Circuit
6 Free Services and Onsite Services for first 100 buyers
Customization as per customer’s demand
Achieve a Status Symbol

35. Sales forecast
Month
Dec-Feb
Mar-May
Jun-Aug
Income
Rs. 12,50,000
Rs. 2,00,00,000
Rs. 3,50,00,000
Blog/Facebook
Rs. 30,000
Rs. 30,000
Rs. 30,000
Advertisement
Rs. 80,40,000
Rs. 40,60,000
Rs. 20,32,000
Brochure
Rs. 0
Rs. 0
Rs. 11,300
Total Expenses
Rs. 80,70,000
Rs. 40,90,000
Rs. 20,73,300
Profit/Loss
Rs -68,20,000
(Loss)
Rs. 1,59,10,000
Rs. 3,29,26,700

36. Future growth Opportunities
• Availability of Quality spare parts
• Customization of the Bike according to Rider
• Women and young riders are increasingly becoming
interested in bikes.
• Industry registration of heavyweight motorcycles are
increasing

37. TECHNOLOGY
• Computer based inventory
• Use of catalytic converter which will help reduce
pollution
• Technology will also impact design of the Bike
• Will be using the tools and technology for Business
analysis.
• Website: http://phoenixbikesindia.wix.com/enigmamotorcycles

38. THANK YOU !