your company has acquired 50 acres of landfor construction of its new manufacturing facility at oragadam, chennai, tamil nadu. this will enhance royal Enfield’s annual production capacity to 150,000 units. the new facility is expected to commence production in first half of 2013
THE TEAMBala Brahma Michael Sahoo Vaiphai Venkat
HISTORY It was founded in 1893 by Albert Eadie and Robert Walker in England. The earlier name was Enfield Manufacturing Co. Ltd. Originally ,it was registered to manufacture bicycle. In 1899, it manufactured heavy bicycle fitted with an engine In 1911, the company added Royal word with its name and became Royal Enfield as they supported Britain in world war 1
HISTORY Later it started producing motorcycle and it supplied large numbers of motorcycles to the British War Department Finally in 1924 launched the first Enfield four- stroke 350 cc motorcycle. In 1955 Enfield of India started assembling Bullet motorcycles. It was mainly used for patrolling by police and army The complete production of Royal Enfield started in 1962 in Chennai
THE LEGENDThe oldest motorcycle company in the worldThe only brand to span 3 centuries, and still goingOne of the first Indian companies to introduce ERP systems "made like a gun, goes like a bullet”
CHANGE THE GAME• product: ruf & tuff , macho bike• Place: teir 1,teir 2,teir 3 and dh At prime locations• Promotion: mens magazine, adventure magazines, adventure trips, fan clubs• Price: premium
CHANGE THE RULES• segmentation: leasure & adventure bikes (niche)• target: bikers, 25-45 yrs, working executives• Positioning: social /status symbol (teir- 3,dh), leasure & adventure (teir 1 & 2 cities)
COMMUNICATION AND DISTRIBUTION• india’s first cult bike.• Its an iconic brand to stay true to character and be proud of what is represents.• Customers are value expressive, sense of independent• Campaigns – use cinema, print media• Leave Home campaign - Thunderbird• Exhibitions – Photography
COMMUNICATION AND DISTRIBUTION• The art of Motor cycling 2010.• Sponsors trips/events• Mark rides, Member rides through out the year• organizes “himalayan odyssey”• Publications – The beat, coffee table book etc.• Forums, clubs, events
COMMUNICATION AND DISTRIBUTION• No proper channel structure• Limited number of Royal Enfield zones• Established the field quality RAF• New company owned showroom• After sales service is problem.• Dealerships and expansion
ADVANTAGES OF LINE EXTENSION• The Thuderbird, Classic, Bullet series are designed to target different user segment.• Each Bike has a differentiator like 350 cc, 500cc, twinspark,etc providing variety to the brand.• The brand got reenergized from releasing the classic series.• It is a niche market with no Competition.
BITING THE BULLET• Scale up without diluting brand equity• Modernising the bikes without taking away their unique identity – Cult Brand• loss of customer satisfaction and brand image due to quality issues• Expedite decisions – Improve management practices• Done little to reinforce its image amongst an exploding two-wheeler market.
BITING THE BULLET• Harley-Davidson and others can be credible threats• Improve its After Sales Service and Spares availability• Significant rise in cost of input materials like steel and Aluminium• Customers continue to sit out for six-month to ride bullets.• what is the pen profile of its prospective buyer?
REVIVING BULLET -TURNAROUND TALEChanges had to be made to keep up with the timeIdeal case study in product planning, process and brandmanagement• BoD at Eicher Motors decided to either shut down or sell off Royal Enfield• Sales were down to 2K units instead of 6K/Month• Technical issues• Too heavy , daunting kick-start.• Difficult to maintain
REVIVING BULLET -TURNAROUND TALE• Modern technology used• but vintage look retained• A modern aluminium engine• build, the design of the head lamp and the petrol tank.• gears be shifted close to the riders left foot• separate gear box and oil sump design
Future strategy• A critical element in this strategy is to continually expandthe customer offering• In order to augment the production for growing marketdemand.• Its all-new café racer model which will launched in 2013• study to develop a comprehensive 360 view on theopportunities, risks and threats to the business. theseinclude areas such as market trends, newcompetition, changing customer preferences, disruptions insupplies, product development, talent management etc
SUGGESTIONS• Improved Sales and Service network-Franchise• Encourage young entrepreneurs to take new delearships on profit sharing basis• Brand Promotion Strategy- Common Tag line- “challenging real men” • Brand Ambassador- Action Movie display • Tie up with adventurous brand- Mountain dew • Extend Apparel counter to colleges • Weekend trips for student/corporate – Video show on TV- Meet brand ambassador on next trip