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. History
Beginning
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. 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 2016and
is priced at Rs.2.2lakh, 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 ABSsystem 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
STRENGTH
WEAKNESS
OPPORTUNITY
THREATS
•Size and scale of parent company.
• High emphasis on R and D
•. Established brand name
• Established market distribution channel
•1.Two-wheeler segment is one of the
most growing industries
•Export of bikes is limited i.e. untapped
international markets
•Strong competition from Indian as well
as international brands
• Dependence on government policies
and rising fuel prices Better public
transport will affect two-wheeler sales
• 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:
• REhas a niche segment and is classified as a leisure and adventure cruiser bike in the
Tier-I &Tier-IICities.
• InTier-3 markets it is associated with the social/status symbol.
• Itis considered asa powerful motorcycle for bike adventurers.
• The vehicle is considered more asa lifestyle brand.
Targeting:
• It is targeting Bikersin the age group of 25-45 years of age, and are working
executives primarily looking for.
• A leisurebike
• A cruiserbike
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
MarketingMIX(product)

12. Marketing MIX(Continued)
Price:
InIndia the pricing of the motorcycle is more towards premium
segment. Itis perceived as an aspirational brand.
Customer ’sPerceivedValue

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 andbiking
magazines and local print media.
Sticks to the Vintage and Macho appeal it brings in allits
promotions.
Offers Adventure Rides to the existing and futurecustomers.

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 FY2016-17.
Royal Enfield holds 4.69% percent market share indicating
robust sales for the year 2017-18.

17. SALES
• Salesof motorcycles in the premium category (those with an engine displacement
of 150cc and above) surged to 1.7 million units in FY2016-17 of which 1.5million
units in 2015-16, making it the fastest-growing segment in the market
• 350-500 cc bike saleis 1.7million out of 17 million total bike saleacross
India(Approx-10% - of the totalsegment).
• However, two wheeler industry registered salesat agrowth rate of 6.89
• percent during FY2017 over FY2016 to register salesof 17million.
The following graph displays the total salesof the two wheelers in India for the
FY2016-17.
• The Royal Enfield Bullet (350 cc,500 cc) and Classicmodels (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. Thissegment is unique asit was
originally created by the Bullet seriesof 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 asdistributers of motorbikes in a specified area which
acts asproducer to dealer channel.
Distribution Merchandise
• Available in all branded Royal Enfield stores, REfollowed the
promotion strategy first initiated by Harley Davidson
motorcycles. The various bikers merchandise available such
ashelmets, 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 REholds 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