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ROYAL ENFIELD
OVERVIEW
Oldest Motorcycle company
The first motorcycle was built in 1901.
Founded in 1955 as Enfield India
In 1994, bought by Eicher Motors.
Used in World War II
Headquarters in Chennai.
Known for its classic design that has not changed much since from beginning.
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
canon, and their motto,
“Made like a Gun”.
GROWTH OF ROYAL ENFIELD IN RESPECT TO
INDUSTRY GROWTH (IN VOLUMES)
Competitors
DUCATI
MAHINDRA JAWA BAJAJ DOMINOR
BAJAJ AVENGER Suzuki Intruder
Hero Moto Corp, 35.07%
Honda, 28.49%
TVS, 14.69%
Bajaj, 10.25%
Suzuki, 4.20%
Royal Enfield
Mahindra, 0.01% Others, 4.03%
AUG 2019
MARKET SHARE
Source: Team-BHP.com
Total Market Share: 21,181,390 Units
RE Market Share: 6,354,417 Units
1. Strong Brand Name
2. High Quality Standards
3. Strong Research &
Development
4. Strong Growth
5. Expanding Global
Market
6. Support from Eicher
Group
7. Effective Advertising
Capability
1. Expensive because of
Premium Pricing
Strategy.
2. Heavy Weight of the
motor cycle.
3. Low Mileage of high
cc bikes can be an
issue.
1. Two-wheeler segment
is one of the most
growing industries.
2. Expand Globally
3. Higher Disposable
Income
4. Export of bikes is
limited i.e. untapped
international markets.
1. Strong competition
from Indian as well as
International Brands.
2. Dependence on
government policies
and rising fuel prices.
3. Better public
transport will affect
two-wheeler sales.
Segmentation
• RE has a niche segment and is
classified as a leisure and
adventure cruiser bike in the
Tier-I and Tier-II cities.
• In Tier-III cities, it is associated
with the status/social symbol.
• Powerful bike for bike
adventurers.
• The brand is considered as a
lifestyle brand.
Targeting
• Targeting bikers in the age
group of 25-45 years of age.
• Primarily for adventurers.
• Working executives looking
for: A leisure bike & A Cruiser
Bike.
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.
STP OF ROYAL ENFIELD
PRODUCT
PRICING
 The company is using premium pricing strategy in which it
charges high prices from its customer to create a brand image of
premium product.
• The company is also selling optional products like Bike accessories
and apparel along with is main product which are also expensive.
 Company is not proving any discounts or allowances even during
festive season to the customer, to position its product as elite or
premium than others.
 The prices of the same model vary according to the different
colours.
Model Price
Royal Enfield Continental Gt 650cc Rs. 2.66 lakh Onwards
Royal Enfield Interceptor 650cc Rs. 2.56 lakh Onwards
Royal Enfield Himalayan 400cc Rs. 1.81 lakh Onwards
Royal Enfield Thunderbird 350cc Rs. 1.57 lakh Onwards
Royal Enfield Thunderbird 350X Rs. 1.64 lakh Onwards
Royal Enfield Thunderbird 500cc Rs. 2.07 lakh Onwards
Royal Enfield Thunderbird 500X Rs. 2.15 lakh Onwards
Royal Enfield Classic 350cc Rs. 1.46 lakh Onwards
Royal Enfield Classic 500cc Rs. 2.02 lakh Onwards
Royal Enfield Bullet 350cc Rs. 1.15 lakh Onwards
Royal Enfield Bullet 500cc Rs. 1.89 lakh Onwards
Royal Enfield Bullet Trials 350cc Rs. 1.63 lakh Onwards
Royal Enfield Bullet Trial 500cc Rs. 2.08 lakh Onwards
Royal Enfield Products Prices
Comparative Analysis
Model CC Price
Royal Enfield Continental GT 650cc Rs. 2.66 lakh Onwards
Royal Enfield Interceptor 650cc Rs. 2.56 lakh Onwards
Royal Enfield Classic (350-500) 350-500cc Rs. 1.46 lakh – 2.2 lakh
Royal Enfield Bullet (350-500) 350-500cc Rs. 1.15 lakh-1.9 Lakh
Royal Enfield Thunderbird(350-500) 350-500cc Rs.1.57 Lakh- 2.15 Lakh
Royal Enfield Himalayan 400cc Rs. 1.81 lakh Onwards
Suzuki Intruder 160cc Rs.1 lac onwards
Bajaj Avenger(Street, Cruise) 220cc Rs.80000-1.10Lac
Mahindra Jawa 300cc Rs. 1.64 lakh Onwards
Mahindra Jawa 42 300cc Rs. 1.55 lakh Onwards
Mahindra Jawa Perak 350cc Rs. 1.95 lakh Onwards
Bajaj Dominar 400cc Rs. 2 lakh Onwards
GLOBAL PRESENCE
PLACE
• Headquarters located at Chennai, Tamil Nadu.
• Manufacturing Unit- Chennai
• Total dealers as on November 2019:
349 spread across the country
• Total Distributers in India: 92,in which majority of which are in
North India
• Royal Enfield bike showrooms in India are spread across 29 states
and Union territory.
• It has spread across 239 cities in India
Distribution
Strategy
• Royal Enfield distribute its motorcycle only through distributor of RE in a
specified area.
• It has spread its product presence to India as well as 55 countries all over the
world.
• Royal Enfield was able to tackle the problem of product shortage and export
the products to all the nations through ship route.
Promotion Strategy
1) Organise Nation Wide Tours
2) Rider Mania in Goa every year.
3) Promoted in MENs magazines,
Adventure magazines, local print
media
4) Factory Tours
5) Showcase in Auto Expo
Continued...
• It revealed its custom
bikes in Biarritz, France at
Wheels and Waves
custom bike show.
• Promotion through
Movies
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.
Royal Enfield-Detailed 4P's Analysis

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Royal Enfield-Detailed 4P's Analysis

  • 2. OVERVIEW Oldest Motorcycle company The first motorcycle was built in 1901. Founded in 1955 as Enfield India In 1994, bought by Eicher Motors. Used in World War II Headquarters in Chennai. Known for its classic design that has not changed much since from beginning.
  • 3. 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 canon, and their motto, “Made like a Gun”.
  • 4. GROWTH OF ROYAL ENFIELD IN RESPECT TO INDUSTRY GROWTH (IN VOLUMES)
  • 5. Competitors DUCATI MAHINDRA JAWA BAJAJ DOMINOR BAJAJ AVENGER Suzuki Intruder
  • 6. Hero Moto Corp, 35.07% Honda, 28.49% TVS, 14.69% Bajaj, 10.25% Suzuki, 4.20% Royal Enfield Mahindra, 0.01% Others, 4.03% AUG 2019 MARKET SHARE Source: Team-BHP.com Total Market Share: 21,181,390 Units RE Market Share: 6,354,417 Units
  • 7. 1. Strong Brand Name 2. High Quality Standards 3. Strong Research & Development 4. Strong Growth 5. Expanding Global Market 6. Support from Eicher Group 7. Effective Advertising Capability 1. Expensive because of Premium Pricing Strategy. 2. Heavy Weight of the motor cycle. 3. Low Mileage of high cc bikes can be an issue. 1. Two-wheeler segment is one of the most growing industries. 2. Expand Globally 3. Higher Disposable Income 4. Export of bikes is limited i.e. untapped international markets. 1. Strong competition from Indian as well as International Brands. 2. Dependence on government policies and rising fuel prices. 3. Better public transport will affect two-wheeler sales.
  • 8. Segmentation • RE has a niche segment and is classified as a leisure and adventure cruiser bike in the Tier-I and Tier-II cities. • In Tier-III cities, it is associated with the status/social symbol. • Powerful bike for bike adventurers. • The brand is considered as a lifestyle brand. Targeting • Targeting bikers in the age group of 25-45 years of age. • Primarily for adventurers. • Working executives looking for: A leisure bike & A Cruiser Bike. 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. STP OF ROYAL ENFIELD
  • 9.
  • 11. PRICING  The company is using premium pricing strategy in which it charges high prices from its customer to create a brand image of premium product. • The company is also selling optional products like Bike accessories and apparel along with is main product which are also expensive.  Company is not proving any discounts or allowances even during festive season to the customer, to position its product as elite or premium than others.  The prices of the same model vary according to the different colours.
  • 12. Model Price Royal Enfield Continental Gt 650cc Rs. 2.66 lakh Onwards Royal Enfield Interceptor 650cc Rs. 2.56 lakh Onwards Royal Enfield Himalayan 400cc Rs. 1.81 lakh Onwards Royal Enfield Thunderbird 350cc Rs. 1.57 lakh Onwards Royal Enfield Thunderbird 350X Rs. 1.64 lakh Onwards Royal Enfield Thunderbird 500cc Rs. 2.07 lakh Onwards Royal Enfield Thunderbird 500X Rs. 2.15 lakh Onwards Royal Enfield Classic 350cc Rs. 1.46 lakh Onwards Royal Enfield Classic 500cc Rs. 2.02 lakh Onwards Royal Enfield Bullet 350cc Rs. 1.15 lakh Onwards Royal Enfield Bullet 500cc Rs. 1.89 lakh Onwards Royal Enfield Bullet Trials 350cc Rs. 1.63 lakh Onwards Royal Enfield Bullet Trial 500cc Rs. 2.08 lakh Onwards Royal Enfield Products Prices
  • 13. Comparative Analysis Model CC Price Royal Enfield Continental GT 650cc Rs. 2.66 lakh Onwards Royal Enfield Interceptor 650cc Rs. 2.56 lakh Onwards Royal Enfield Classic (350-500) 350-500cc Rs. 1.46 lakh – 2.2 lakh Royal Enfield Bullet (350-500) 350-500cc Rs. 1.15 lakh-1.9 Lakh Royal Enfield Thunderbird(350-500) 350-500cc Rs.1.57 Lakh- 2.15 Lakh Royal Enfield Himalayan 400cc Rs. 1.81 lakh Onwards Suzuki Intruder 160cc Rs.1 lac onwards Bajaj Avenger(Street, Cruise) 220cc Rs.80000-1.10Lac Mahindra Jawa 300cc Rs. 1.64 lakh Onwards Mahindra Jawa 42 300cc Rs. 1.55 lakh Onwards Mahindra Jawa Perak 350cc Rs. 1.95 lakh Onwards Bajaj Dominar 400cc Rs. 2 lakh Onwards
  • 15. PLACE • Headquarters located at Chennai, Tamil Nadu. • Manufacturing Unit- Chennai • Total dealers as on November 2019: 349 spread across the country • Total Distributers in India: 92,in which majority of which are in North India • Royal Enfield bike showrooms in India are spread across 29 states and Union territory. • It has spread across 239 cities in India
  • 16. Distribution Strategy • Royal Enfield distribute its motorcycle only through distributor of RE in a specified area. • It has spread its product presence to India as well as 55 countries all over the world. • Royal Enfield was able to tackle the problem of product shortage and export the products to all the nations through ship route.
  • 17. Promotion Strategy 1) Organise Nation Wide Tours 2) Rider Mania in Goa every year. 3) Promoted in MENs magazines, Adventure magazines, local print media 4) Factory Tours 5) Showcase in Auto Expo
  • 18. Continued... • It revealed its custom bikes in Biarritz, France at Wheels and Waves custom bike show. • Promotion through Movies
  • 19. 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.