details of the Royal enfield.

2. • Royal Enfield was a brand name which The Enfield
Cycle Company Ltd of Redditch sold motorcycles,
bicycles, lawnmowers and stationary engines which
they had manufactured.
• The first Royal Enfield motorcycle was built in 1901.
• Enfield diversified into motor cycles, 1901 and motor
cars, 1902.
• In 1914 Enfield supplied large numbers of
motorcycles to the British War Department

3.  Royal Enfield motorcycles had been sold in India since 1949.
 In 1955, the Redditch company joined Madras Motors in India in
forming "Enfield India" to assemble, under license, the 350 cc
Royal Enfield Bullet motorcycle in Madras (now called Chennai).
 In 1955, the Indian government looked for a suitable motorcycle
for its police and army, for use patrolling the country's border.
 Licensed from Royal Enfield by the indigenous Indian Madras
Motors, it is now a subsidiary of Eicher Motors Limited, an
Indian automaker.
 Royal Enfield is also distinctive in its logo with a cannon and a
tagline of “Made like a gun”. This logo shows the heritage of the
Enfield Company.

4. Marketing Mix of Royal Enfield analyses the
brand/company which covers 4Ps:
Product
Price
Place
Promotion

5.  Royal Enfield which started making bikes for Indian
army has a concentrated product portfolio in its
marketing mix
 It has been upgraded with technology such as EFI
(Electronic Fuel Injection) for better response, heavy
cast iron diesel engine of the earlier model has been
replaced by a lighter but equally power full single
cylinder four strike petrol engine which is made from
aluminum.
 But it was ensured that the “VINTAGE” and “Macho”
appeal of the bike is not damaged.

6. • Royal Enfield comes up with a bike which is more demanded
by the younger generations.
• Royal Enfield focuses more on quality than the price. So with
this Royal Enfield follows a premium pricing strategy in its
marketing mix by delivering its customers a high quality
products which are worth the value.
• The company offers a powerful and stylish product with an
established and high-profile brand name and hence its target
customers do not hesitate in making a purchase irrespective
of high prices.

7. • Royal Enfield whose central manufacturing plant is based in
Chennai is now operating in more than 50 nations all over the
world.
• Royal Enfield has a vast and strong distribution network which
incorporates the goals of merchants and dealers so that
customer needs are satisfied without any issue.
• Royal Enfield targets both urban and rural consumers in India
with its more than 350 dealership outlets.

8. • Royal Enfield has always focused on a holistic
and complete marketing approach.
• It also participates in various shows or deal
with various TV series in order to increase
visibility of products.
• Royal Enfield’s promotions are also seen by
traditional way that is through TV, newspaper,
magazines, flyers, boards etc. Hence, this
concludes the Royal Enfield marketing mix.

9. • Strong Brand Name- Royal Enfield has created a strong
brand identity in the market and has been able to gain credibility in
the market from its customers.
• High-Quality Standards-One of the main reasons of the
strong brand name of Royal Enfield is due to its high-quality
standards. Royal Enfield emphasizes on providing best quality to its
customers.
• Strong Research and Development- Royal Enfield has an in-house
R&D center which takes care of further enhance -ment of
the product portfolio of the company and makes sure that the
reliability of the consumer is maintained.
• Expanding Global Market-Royal Enfield bikes are currently
exported to more than 30 countries worldwide and due to increase
in demand, Royal Enfield has invested heavily in setting up
manufacturing facilities in the UK

10. • EXPENSIVE- Royal Enfield targets a niche
market of motorcycle lovers who are ready to
pay a premium for the brand. But, it misses
out on a large market that is willing to buy a
low priced variant of Royal Enfield
• LOW MILEAGE- Royal Enfield produces large
volume cylinder bikes (high CC) which have
more capability to burn more amounts of air
and fuel and thus they give low mileage as
compared to low CC bikes.

11. • Growing Market - The two-wheeler market is growing
worldwide which provides an opportunity for the company
to increase customer base and sales globally.
• Expand Globally- Royal Enfield needs to expand its export
markets to more countries in the Europe, Africa and Asia.
The demand for such bikes is increasing in these markets
and Royal Enfield can take advantage of such an
opportunity.
• Higher Disposable Incomes - The Disposable income of
middle-class people in countries like India has been on the
rise. Thus, those individuals who could not afford a Royal
Enfield some years ago are now in a position to buy one.
This is one of the main reasons for the growing sales of
Royal Enfield.

12. Threats in the SWOT Analysis of Royal
Enfield
• Strong Competition- Royal Enfield competes with
many bike companies in the cruiser segments
worldwide. It also competes with high utility bikes in
the market. Such competition in the market reduces
market share.
• Fuel Rise - As mentioned earlier, mileage of Royal
Enfield bikes are low and thus any increase in Fuel
prices will affect sales of Royal Enfield.
• Future Technology - The Company should also invest
in the future technology like clean fuel technologies
which should be more efficient as many rival brands
come in the market with new technology.

13. • Boston consulting group (BCG) Matrix is four
celled matrix developed by BCG, USA.
• It provides a graphic representation for an
organization to examine different businesses in
its portfolio on the basis of their related market
share and industry growth rates.
• According to this matrix business could be
classifies as high to low according to their
industry growth rate and relative market share.

15. • Stars represent business units having large
market share in a fast growing industry.
• They may generate cash but because of fast
growing market, stars require huge
investments to maintain their lead.
• If successful, a star become a cash cow when
the industry matures.

16. • Cash Cow represents business units having a
large market share in a mature, slow growing
industry.
• Cash cows require little investment and
generate cash that can be utilized for
investment in other business units.
• When cash cows loose their appeal and move
towards deterioration, then a retrenchment
policy may be pursued.

17. • Question marks represent business units having
low relative market share and located in high
growth industry.
• They require huge amount of cash to maintain or
gain market share.
• It has potential to gain market share and become
a star, which would later become cash cow.
• Question marks do not always succeed and even
after large amount of investments they struggle
to gain market share and eventually become
dogs.

18. • Dogs represent businesses having weak
market shares in low growth markets.
• They neither generate cash nor require huge
amount of cash. Due to low market share,
these business units face cost disadvantages.
• Dogs should be liquidates if there is fewer
prospects for it to gain market share.

19. 1111
MARKET SHARE
G
R
O
W
T
H
STAR QUESTION
MARK
CASH COW DOG
Bullet 350
Classic 350
Thunderbird 350
Classic 500
Himalayan
Continental GT
Royal Enfield
Accessories
BCG MATRIX OF ROYAL ENFIELD

20. • Royal Enfield has posted its highest ever sales growth in
April 2017.
• The sales are largely led by the best selling Royal Enfield
Classic 350, which made up over 68 percent of royal
enfield sales in FY 2017.
• However, sales of Royal Enfield motorcycles above 350 cc
declined by 23 percent in 2017, this include motorcycles
such as Royal Enfield Himalayan, Royal Enfield Classic 500,
Bullet 500, Thunderbird 500 and Continental GT.
• Royal Enfield’s exports also grew by 36 percent in 2017.
• The company is planning to ramp up its production to
nearly 900000 motorcycles by the end of 2018.