A presentation on the Royal Enfield Motorcycles Co. (RE).

1. RAJVARDHAN SINGH
161440
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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
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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”.
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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.
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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
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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
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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.
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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.
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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
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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.
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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.
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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
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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
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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.
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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.
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26. NEW PRODUCT
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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
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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
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29. EVOLUTION OF ROYAL ENFIELD
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30. THANK YOU
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