royal enfield

the evolution of RE its macro and micro enviroment and marketing strategies

1. ROYAL ENFIELD MADE LIKE A GUN, GOES LIKE BULLET AMAN GUPTA ANCHAL RAI VINISH SHARMA AMRAPALI DAS AMAN SINGH

2. Introduction ROYAL ENFIELD FIRST STARTED AS ENFIELD MANUFACTURING COMPANY LTD WAS REGISTERED TO MANUFACTURE BICYCLES IN REDDITCH, UKIN 1893. FOUNDED BY ROBERT WALKERSMITH AND ALBERTEADIE. ROYAL ENFIELD GAINED POPULARITY FROM THE YEAR 1955 WHEN INDIAN GOVERNMENT ORDERED 800 OF THEIR BULLET 350CCMODELSFOR PATROLLINGTHEINDIAN BORDERS. COLLABORATION BETWEEN ROYAL ENFIELD AND ERSTWHILE MADRASMOTORS LEDTO‘ROYALENFIELD INDIA’. ROYAL ENFIELD IS CONSIDERED THE OLDEST MOTORCYCLE BRAND IN THE WORLD, SPANNING 3 CENTURIES AND STILL IN PRODUCTION WITH THE BULLET MODEL ENJOYING THE LONGEST MOTORCYCLE PRODUCTION RUN OF ALL TIME .

3. His t ory B e g i n n i n g The Enfield Cycle company Redditch, Worcestershire Brand name license – 1890 Birth of the bullet -1931 The Indian Connection 1949- Introduction into Indian market 1955- Indian army’s calling Partnership with Madras motors 1971- Closeout in the UK Eicher chapter 1991- Strategic alliance with Eicher motors 1994- Merger into Eicher Group and conversion into Royal Enfield from Enfield India 1996- Immediate compliance to stringent emission norms Post millennium 2002- Launch of India’s first cruiser 2003- First Rider Mania in Goa 2005- Fifty glorious years in India 2010- Successful migration of entire product line to UCE

4. Customer Analysis Industry Analysis Competitors Analysis

5. Competitor Analysis The Bajaj Dominar 400 , launched in India as the most powerful motorcycle from Bajaj Auto on December 15 2016.. Bajaj has positioned it slap bang in Royal Enfield territory It is powered by a 373 cc, single-cylinder 4 stroke engine based on the Duke 390 The engine is tuned to make 34.5 bhp of power and 35 Nm of peak torque. KTM 390 was launched in India in November 2016 and is priced at Rs.2.2 lakh , the KTM 390 DUKE breathes life into values that have made motorcycling so amazing for decade. The Duke 390, in addition to being much faster than the Classic, also comes with ABS system which prevents the wheel from locking- up in times of hard braking. JAWA motorcycle has come up with various new products of premium quality , and had proved its worth ,lets see what it would offer to the customers.

6. SWOT ANALYSIS Weight of the motor cycle can be an issue for few customers.. Mileage of high cc bikes is an issue

7. PESTEL Analysis Political factors include areas such as taxation policy, law labor of law, transportation problems and stable political environment. Furthermore, governments have limited number of motorcycles being sold in the country because Indian currency changes everyday with the comparison of UK pounds. Environment elements incorporate biological and ecological elements, for example, climate, atmosphere conditions, and atmosphere changes. Social elements incorporate the demographic and social parts of the external environment. These elements influence client needs and the measure of potential markets. Technological elements incorporate some mechanical things, for example, Research and advancement activity, automation, technology and the rate of mechanical changes

8. PESTEL Analysis(cont..) Economical elements incorporate efficient stability, the rate of interest, currency rate. These are variables which puts impacts on the operation of business and accrucul choices. As the currency and rate of interest changes, there is no economical stability in the country. Legal elements incorporate livelihood law, consumer law, and health and wellbeing law. These variables put awful effects on the expense of products, the interest of item and the generation of product. The government has proposed the entire organization working environment must provide safety to the employees. They cover issues, for example, preparing, reporting and the proper of security gear to ensure representative are safe.

9. Segmentation, Target and Positioning(STP) Segmentation: RE has a niche segment and is classified as a leisure and adventure cruiser bike in the Tier-I &Tier-II Cities. In Tier-3 markets it is associated with the social/status symbol. It is considered as a powerful motorcycle for bike adventurers. The vehicle is considered more as a lifestyle brand. Targeting: It is targeting Bikers in the age group of 25-45 years of age, and are working executives primarily looking for. A leisure bike A cruiser bike Positioning: A bike for adventure lovers Masculine durable and rugged product Good performance Heritage over hundred years Powerful engine

10. PORTERS 5 FORCES HIGH HIGH LOW LOW Medium

11. PRODUCT Marketing MIX(product)

12. Marketing MIX(Continued) Price:  In India the pricing of the motorcycle is more towards premium segment. It is perceived as an aspirational brand. Customer ’s Perceived Value

13. Marketing MIX Place: The market of Royal Enfield can be divided basically into two segments Big Cities/Metropolitans: Tier1 &Tier 2 Cities Small Cities: Tier 3 &DH (District Headquarters) Promotion : Promotion done through Adventure magazines, Auto and biking magazines and local print medi a . Sticks to the Vintage and Macho appeal it brings in all its promotions. Offers Adventure Rides to the existing and future customers.

14. Marketing Strategy

15. Expeditions Himalayan Odyssey Southern Odyssey BOBMC - Brotherhood of Bulleteers motorcycle community. Rider Mania - Goa The Tour of Rann of Kutch The tour of NH 17 (Mumbai to Goa) The tour of Rajasthan

16. Royal Enfield Market Share The above pie chart describes the consolidated market share of the Indian motorcycle companies for FY 2016-17. Royal Enfield holds 4.69% percent market share indicating robust sales for the year 201 7 -1 8 .

17. SALES Sales of motorcycles in the premium category (those with an engine displacement of 150cc and above) surged to 1.7 million units in FY 2016-17 of which 1.5 million units in 2015-16, making it the fastest-growing segment in the market 350-500 cc bike sale is 1.7 million out of 17 million total bike sale across India(Approx-10% - of the total segment). However, two wheeler industry registered sales at a growth rate of 6.89 percent during FY 2017 over FY 2016 to register sales of 17 million. The following graph displays the total sales of the two wheelers in India for the FY 2016-17. The Royal Enfield Bullet (350 cc, 500 cc) and Classic models (350 cc,500 cc) of motorcycles operate in the 350 cc – 500 cc segment and 500 cc plus segment respectively in the Indian motorcycle industry. This segment is unique as it was originally created by the Bullet series of motorcycles when they were first launched in India

18. Sales Report CAGR GROWTH OF ALMOST 46 PERCENT (ROYAL ENFIELD)

19. Distribution Royal Enfield distributes its motorcycles only through who act as distributers of motorbikes in a specified area which acts as producer to dealer channel. Distribution Merchandise 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.

20. Leave Home Campaign

21. Giving it back to the makers - Handcrafted THE COMPANY TAKES CARE OF THE CRAFT WORKERS AND RETAIN THEM FOR THE LONGEST TIME POSSIBLE. THEY PROMOTE MANUAL ASSEMBLING TO PROVIDE QUALITY PRODUCT

22. Conclusion The presentation objectively explains the rise of Royal Enfield from a brand on the brink of extinction to the most aspirational motorcycle brand in India. It also highlights the segment under which the bike is positioned, describes its closest competitors and where RE holds value vis-à-vis Bajaj and KTM. It shows the company’s ambition to further go upmarket by entering the 750cc + segment to augment its declining market share in the 350cc+ segment . Royal Enfield’s strategic acquisition plan of Ducati will counter Bajaj’s ‘Triumph’ acquisition and also set a platform to launch the brand into a global league.

23. Thank You THANK YOU