Strategic planing to come back to market....

1. 20-Jul-14
MADE LIKE A GUN, GOES LIKE A BULLET…

2. Presented by : MOHD ARIF ANSARI
MBA Marketing

3. 1. introduction
2. Product line
3. Change in strategy after year 2000
4. Communication & distribution
5. Missing communication
6. Analysis of Enfield user & non user
7. Conclusion & recommendation
contents

4. 20-Jul-14
Introduction
 One of the oldest motorcycle companies in the world, Established in 1891 at UK by R.W.Smith and Alber Eadie
 1955 Enfield India Ltd is incorporated India , Country’s first four stroke motorcycle manufacturer
 1994 Eicher group acquired Enfield India. The name changed to Royal Enfield, A unit of Eicher Motors Limited
 Turnover of Eicher is 5800 Crores in 2012
 Royal Enfield Turnover is 900 Crores in 2011
 Around 2600 employees are working for Royal Enfield
 11 Brand Stores, 230 Dealers in India. Exported to 47 countries

5. 20-Jul-1
Royal Enfield had a wide range of offerings that all carry the same heritage and “ Classic
”ness while ensuring delivery of the best performance and technology to our loyal base of
customers across the world.
Bullet
 Bullet 350 UCE
 Electra Twinspark
Thunderbird
 Thunderbird 350
 Thunderbird 500
Export
 Classic EFI
 Classic Military EFI
 Electra EFI
 Electra Deluxe EFI
Classic
 Classic 350
 Classic 500
 Classic Chrome
 Desert Storm
Models

7. Change in Strategy after Year 2000:
Marketing Mix:
Product:
Product which is the ruff & tuff all terrain motorcycle. It has been
upgraded with technology such as EFI (Electronic Fuel Injection) for
better response, heavy cast iron diesel engine of the earlier model has
been replaced by a lighter but equally power full single cylinder four
strike petrol engine which is made from aluminum.
The gears have removed from the right side to left side to need general
standards. But it was ensured that the “VINTAGE” and “Macho” appeal
of the bike is not damaged.

8. Place:
The market of Royal Enfield can be divided basically into two
segments:
1. Metropolitans: Tier 1 &Tier 2 Cities.
2. Small Cities: Tier 3 &DH (District Headquarters)
But in both the market it commands premium position. Hence
the showrooms must be opened in the prime locations of the
cities irrespective of metropolitans or small cities.

9. Promotion:
It is promoted in MENs magazines, Adventure magazines, local
print media, adventure trips i.e. Himalayan Odyssey and Fan
Clubs.
Price:
It is premium product hence demands a premium price.

10. Segmentation, Targeting & Positioning (STP)
Segmentation: It is segmented as a leisure and adventure curser
bike. Though in Tier 3 & DH market it is associated with the
social/status symbol.
Targeting: It is targeting Bikers in the age group of 25-45 years of
age, they are working executives as in the case of Tier 1 & 2 Cities
and young, rich & powerful in terms of Tier 3 & DH.
Positioning: In Tier 1 & 2 cities it is positioned as a leisurely,
adventure, curser bike. But in Tier 3 & DH it is a bike which shows
your social status is a symbol of your power in society.

11. 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
• 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
• No proper service 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

12. The Missing Communication:
In 1960s bullet as “SHAAN KI SAWARI”
In 1970s its shown in SHOLEY movie & promote with “YEH
DOSTI HUM NAI CHORENGE”
The 1980s saw the entrance of Yamaha & Hero Honda.
Yamaha was having excellent pick up and Hero Honda had
excellent mileage. The problem started when Royal Enfield
wrongly identified them as its competitors and started to
compete with them.
In 1980s They shifted their focus from the present loyal
customers to the mass & much younger generation. Their
“Bullet- Machismo” Ad clearly shows the confusion in their
strategy.
They had shown the impossible stunts which are impossible
with a bike like Bullet.

13. Continues…
Bullet was for “Joy of Riding” ,”Adventure”, ”Shaan”. Thus the
phase from 1990 to 2000 can be called a dark phase and it
nearly killed the “Royal Enfield” brand. Even the new masters
of “Royal Enfield” who acquired them in 1994 were planning to
shut down the Brand.
 In 2004 “Himalaya Odyssey” has been launched with great
tag line “JAB BULLET CHALE TO DUNIYA RASTA DE”

14. Analysis of the non-Enfieldbike users
0%
5%
10%
15%
20%
Below 20 20-30 31-40 40 and
above
0%
16%
4%
1%
2%
10%
2%
0%0%
4%
3%
0%0%
2%
4%
0%0%
2%
0% 0%
Bajaj Yamaha Hero Honda TVS KTM duke
AGE
0
1
2
3
4
5
6
7
8
9
Bajaj Hero Honda Yamaha KTM Duke
7
3
2
0
5
1
6
2
9
2
4
00
1
2
0
Business Student Service Government service
Occupation
Demographic profile

15. Characteristics of Royal Enfield that attracts customers
0
5
10
15
20
25
Long journey
vehicle
Utility vehicle Status
symbol
Style
statement
14
23
4
8
Purpose for purchasing a Royal Enfield
0
2
4
6
8
10
12
2
11
6
3
0
Features that attract the most

16. Analysis of the Royal Enfieldusers
Demographic profile
0
5
10
15
20
Occupation
0
5
10
15
20
Below 20 20-30 31-40 40 and
above
0
13
18
19
Age

17. Characteristics of the various models
0
2
4
6
8
10
12
14
16
5
13
15
1
14
2
1
Name of the model most purchased
0
5
10
15
20
25
50,000 to
70,000
71,000 to
90,000
91,000 to 1
lakh
1 lakh to 2
lakh
2 lakh and
above
5
12
7
23
2
Cost when purchased

18. Customer satisfaction level
0
5
10
15
20
25
30
35
40
Strongly
disagree
Disagree Somewhat
disagree
Neither agree
nor disagree
Somewhat
agree
Agree Agree
strongly
0 0
4 4
8
19
15
0
1
3
4
11
27
4
2
29
3
6
5
3
1
0 0 0
2
8
37
33
30
0
7 7
3
00
1
3 3
8
32
2
6
21
2
9
2
9
1
This is one of the best product I could
have bought
This product is exactly what I need
This product hasn't worked out as well as I
thought it would
I am satisfied with my decision to buy this
product
Sometimes I have mixed feelings about
keeping the product
My choice to buy tis product was a wise
one
If I could do it over again, I'd buy a
different make/model
I have truly enjoyed this bike
I feel bad about my decision to buy this
product
Owning this bike has been a good
experience
I am sure it was the right thing to buy this
bike

19. Conclusion andRecommendations:
.
1. The buying behavior is governed predominantly by the need for Power and respect for the iconic Brand.
2. The internal locus of control is by and large dependent on the Sense of Control the motorcycle offers and also on the Sense
of Freedom that users associate with it.
3. Users are mostly Professional Males, 25-45 years of age, including some students.
4. Users’ display mostly Value-Expressive behavior and Ego-defensive behavior is not seen amongst responses.
5. People who choose not to buy Bullets do so because of high price, maintenance and spares hassles and also because some
feel they are not built for it.
6. Advertisements are rarely recalled and are highly ineffective amongst non- Bullet riders.
7. Bullets are perceived as low on cost-effectiveness, but high on ride comfort and reliability.

20. The Recommendations are:
1- Improved Sales and Service Network by Franchise or dealership on Profit Sharing Basis.
2. Marketing Communication should focus on satisfying the needs for Respect, Power and Comfort.
3. A non-flamboyant well-built brand ambassador may be chosen to represent the Brand.
4. RE should tie up with adventurous students or corporate executives and arrange adventurous trips on weekends to locations-
like Cherapunji, lonavala etc.
5. They should tie-up with adventurous brands like Thumps Up or Mountain dew to give a complete revamp of branding.
6. The RE Apparels available on their exclusive stores should be made available in college counters to make them available to the
young students.
7. They can plan to export RE to other developing economies like- Brazil, China and Russia to capture the market there