SHASHIKANT D V-17020343035
ROYAL ENFIELD FIRST STARTED AS ENFIELD MANUFACTURING
COMPANY LTD WAS REGISTERED TO MANUFACTURE BICYCLES
IN REDDITCH, UK IN 1893.
FOUNDED BY ROBERT WALKER SMITH AND ALBERT EADIE.
ROYAL ENFIELD GAINED POPULARITY FROM THE YEAR 1955
WHEN INDIAN GOVERNMENT ORDERED 800 OF THEIR BULLET
350CC MODELS FOR PATROLLING THE INDIAN BORDERS.
COLLABORATION BETWEEN ROYAL ENFIELD AND ERSTWHILE
MADRAS MOTORS LED TO ‘ROYAL ENFIELD 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.
ROYAL ENFIELD'S PARENT COMPANY EICHER MOTORS HAS SHOWN
INTEREST IN THE PURCHASE OF ICONIC ITALIAN MOTORCYCLE BRAND
THEY CLEARED THE FIRST ROUND OF BIDDING AND LIKELY TO PLACE
AN OFFER BETWEEN $1.8-2 BILLION FOR DUCATI.
‘ROYAL ENFIELD TWIN-CYLINDER MOTORCYCLE TO DEBUT AT
SPECULATIONS REVEAL A PARALLEL-TWIN CYLINDER ENGINE, WHICH
HAS BEEN UNDER DEVELOPMENT.
ROYAL ENFIELD ENTERS US AND BRAZILIAN MARKETS’.
ROYAL ENFIELD BECOMES THE MOST VALUABLE BIKE MAKER IN INDIA,
OVERTAKING BAJAJ AND HERO MOTORS IN TERMS OF MARKET
Indian motorcycle industry is the largest in the world with an annual
production of over 2.3 million units, overtaking China.
The total market size of the automobile industry is RS 540 billion rupees
and has been growing at 8% per annum.
In the last 4 to 5 years, the two wheeler segment has driven the overall
volume growth on the account of spurt of sales in motorcycles.
The country is now the second largest producer of two wheelers in the
In all, over 6.6 lakh Royal Enfield motorcycles were sold across the
world in 2016-17. The company is planning to ramp up its
production to nearly 900,000 motorcycles by the end of 2018.
The Bajaj Dominar 400 was 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 KTM 390 Duke.
The engine is tuned to make 34.5 bhp of power and 35 Nm of peak torque.
KTM 390 DUKE:
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 decades.
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.
Segmentation, Target and Positioning(STP)
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.
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
The market of Royal Enfield can be divided basically into two
Big Cities/Metropolitans: Tier1 &Tier 2 Cities
Small Cities: Tier 3 &DH (District Headquarters)
Promotion done through Adventure magazines, Auto and biking
magazines and local print media.
Sticks to the Vintage and Macho appeal it brings in all its
Offers Adventure Rides to the existing and future customers.
In India the pricing of the motorcycle is more towards premium
segment. It is perceived as an aspirational brand.
Customer’s Perceived Value
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 2016-17.
Royal Enfield Sales Report
Royal Enfield’s sales growth of 25 percent in May 2017 was led by
motorcycles with engine capacity of up to 350cc that dominate its
bike business that grew by 29 percent with sales of 43,217 units.
Market Share Trends
(Market share month-on-month)
The bar graph displayed above indicates the market share trend of
Royal Enfield over the period March ’16-March ‘17
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
(Consolidated sales of 2 wheelers for the year 2016-17)
Segment Sales Analysis
Consolidated sales in 350cc-500cc segment and 500 cc+
segment for FY 2016-17)
CLASSIC 350 AND 500
• CUBIC CAPACITY = 350 CC AND 500 CC
• AMONG THE MOST POPULAR BIKES FROM THE ROYAL ENFIELD
BULLET 350 AND 500
• HAVING REMAINED IN PRODUCTION SINCE 1932, IT BOASTS THE
LONGEST PRODUCTION RUN OF ANY MOTORCYCLE.
• IT SHARES THE SAME CUBIC CAPACITY, ENGINE BLOCK AND
CHASSIS WITH THE CLASSIC 350.
• A LONG WHEELBASE AND BIGGER TIRES PROVIDE INCREASED
STABILITY AND ROAD GRIP MAKING IT IDEAL FOR LONG
• THE HIMALAYAN IS ROYAL ENFIELD’S FIRST PROPER ADVENTURE
TOURER BUILT WITH A 410 CC ENGINE SIMILAR TO THE BULLET
AND THE CLASSIC ENGINES.
• IT ALSO FEATURES MODERN TECHNOLOGY LIKE MONO-SHOCK
REAR SUSPENSION TO POPULARIZE ADVENTURE BIKING IN
Royal Enfield Thunderbird 350 and 500:
The Thunderbird 350 is a traditional cruiser and is
among the most beautiful offering from Royal Enfield.
It features a projector headlamp, hazard lamps and an
LED tail light.
Royal Enfield Continental GT
The Continental GT is Royal Enfield’s lightest and most powerful
production motorcycle currently on sale in India.
It debuts a cafe-race and also powered by a 535cc fuel-injected engine.
The chassis provides the motorcycle with optimal stiffness.
It also features clip-on handlebars to improve riding balance and
Customer’s social and psychological needs.
Royal Enfield believes it is in the business of selling lifestyle, not
Creating customer value by sponsoring various adventure activities,
owner’s club activities.
RE has come up with an unique initiative of Royal Enfield Driving
Program for both Men& women to train them to ride a motorcycle
from the very basic to all its enthusiasts and pillion riders who want
become a ‘rider’ in the true sense of the word.
Product differentiation (Contd)
Royal Enfield has been associated with leisure and adventure
motorcycling and under the various initiatives.
‘Rider Mania’ and ‘India Bull Rider’ are such initiatives which bring
the bike enthusiasts closer to this aspect.
Tour rides primarily segregated into the Marquee rides and events
conducted at a national level and subsequently into the regional
rides conducted through the regional showrooms.
The Indian automotive industry has sub-segmented the motorcycle
in terms of vehicle pricing, power and mileage.
Sub-Segmentation of Motor Cycles on Basis of Pricing
Economy: Priced at RS. 50000- RS.70000 [100cc - 125 cc]
Executive: Priced at RS. 70000- RS.85000 [125cc – 150cc]
Premium: Priced at RS. 85,000 and above. [150 cc+]
The premium segment is further sub divided into various segments:
150 cc-200 cc.
200 cc – 350cc segment.
350 cc – 500cc segment.
500 cc + segment.
Royal Enfield distributes its motorcycles only through who
act as distributers of motorbikes in a specified area which
acts as producer to dealer channel.
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.
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
It shows the company’s ambition to further go upmarket by entering the
750cc+ segment to augment its declining market share in the 350cc+
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