Royal Enfield, founded in 1891, evolved through significant milestones including military contracts during WWI and a merger with Eicher Motors in 1994, becoming a staple in the Indian motorcycle market. The company successfully modernized its products while retaining a vintage appeal, establishing a robust distribution network and community outreach. Despite challenges like pricing and market competition, Royal Enfield continues to leverage its brand strength with a focus on niche segments and customer engagement.

2. 1891: The first Royal Enfield motorcycle was built.
1901: Enfield built their first motorcycle with a 239 cc engine.
1910: Royal Enfield was using 344 cc Swiss Motosacoche V-Twin engines.
1914: In first world war, Enfield supplied large numbers of motorcycles to the British War Department and also won
a motorcycle contract for the Imperial Russian Government.
1921: Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-stroke 350 cc single using a
Prestwich Industries engine
1939: During World War II, The Enfield Cycle Company was called upon by the British authorities to develop and
manufacture military motorcycles.
1955: The Redditch company joined Madras Motors in India in forming "Enfield India" to assemble, under licence,
the 350 cc Royal Enfield Bullet motorcycle.
1990: Royal Enfield collaborated with the Eicher Group, an automotive company in India, and merged with it in 1994.
HISTORY

3. THE PROBLEM
Despite the bikes' fan following, the motorcycle division was bleeding
THE WAY OUT
Appealing to a wider base, making the products more reliable
THE CHALLENGE
Modernizing the bikes without taking away their unique identity
THE SUCCESS
Modern technology used, but vintage look retained; improved
management practices
THE TURNAROUND- BITING THE BULLET

4. ROLE OF ROYAL ENFIELD IN INDIAN MARKET
• ROYAL ENFIELD CAME TO INDIA IN THE YEAR 1955.
• SET UP IT’S FIRST MANUFACTURING UNIT IN CHENNAI.
• TODAY, IT HAS THREE MANUFACTURING UNITS IN CHENNAI
• IN 1990, ROYAL ENFIELD ENTERED IN A STRATEGIC ALLIANCE WITH EICHER MOTORS.

6. • SUCCESSFULLY MANAGED TO SET UP 11 BRAND STORES, 250 DEALERS IN MAJOR CITIES AND
TOWNS AND 200 AUTHORIZED SERVICE CENTERS.
• EXPORTS- UNITED STATES OF AMERICA, UNITED KINGDOM, JAPAN AND OTHER EUROPEAN
COUNTRIES.
• FOCUSED ON AUGMENTING ITS LEADERSHIP POSITION IN BOTH THE POWER AND LEISURE BIKE
SEGMENTS IN INDIA.

7. 2017
Rs 31,885
2006
Rs 224
2015
Rs
15,612
2017
Bajaj Auto-
Rs 2959
Honda-
Rs 1404
ROYAL ENFIELD SHARE PRICES OVER THE YEARS
(NOW OWNED BY EICHER MOTORS)

8. PERCEPTUAL MAP
LOW
QUANTITY
HIGH PRICE
LOW PRICE
HIGH
QUANTITY

9. 57%
21%
17%
5%
0%
Two-Wheeler Market Share Analysis (May,2016)
Hero MotorCorp Bajaj Auto Honda Motorcycles and Scooters
Royal Enfield Harley Davidson Triumph Motors

10. 106,665
312,233
205,158
56,316
277 84
120,322
476,012
290,540
40,037
330 75
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Bajaj Auto Hero MotoCorp Honda Motorcycles
and Scooters
Royal Enfield Harley Davidson
India
Triumph
Motorcycles India
Sales(units) In India
Dec'16 Dec'15

11. GLOBAL ASPECTS
Companies,
subsidiaries &
Technical
centres
Market
companies in
USA and Brazil
Subsidiaries in
North America
and Brazil
Technical centres
in North America
and UK
Exports
50 Countries
Middle East and
South Asia
USA, Japan, UK,
several European
and Latin
American
countries
Growth
Annualised
growth of 65.2%
over 2015-16
Sales
6,60,000 bikes in
India
15,383 bikes sold
internationally
Stores
25 exclusive
stores across 13
countries
568 Dealerships
across 48
countries

13. MODELS UNDER 350CC RANGE
Royal
Enfield
350 cc
Bullet
Classic
Thunderbird

14. MODELS UNDER 500CC RANGE
Royal
Enfield
500 cc
Bullet
Classic
Thunderbird

16. ADVT. STRATEGY BY ROYAL ENFIELD
MAKING IT FOR THE UNIQUE POPULACE
• APPEALING TO INDEPENDENTS, YOUTH, DARING & ADVENTURE LOVING PEOPLE .
MAKING IT A CLASS APART
• CREATING A NICHE SEGMENT FOR ITSELF I.E.,- TOURING & CROSS COUNTRY PLATFORM

17. MAKING A COMMUNITY NETWORK
• ESTABLISHING A COMMUNITY NETWORK THROUGH
PRINT & SOCIAL MEDIA PLATFORMS.
• ESTABLISHING BUYERS NETWORK THROUGH SELL
SHOPS.
MAKING DAYS TO CELEBRATE
• RE HOISTS FANBOY TRIPS & EVENTS ANNUALLY I.E.,-
REUNIONS, HIMALAYAN ODYSSEY ETC.

18. MAKING EXCLUSIVITY IT’S CHARACTER
• ESTABLISHING MERCHANDISING OUTLETS FOR ITS FAN
FOLLOWING.
• PROMOTING RE EXCLUSIVE SILENCERS
• ALLOWING PERSONALIZED CUSTOMIZATION ON EACH RE
MODELS.
• PROMOTING DIFFERENT CHARACTERS TO DIFFERENT RE
MODELS CLASS .I.E., -HIMALAYAN BUILT FOR RUGGED &
LOFTY TERRAINS, CLASSIC MODELS FOR CLASSIC RETRO
LOOKS.

19. SWOT
ANALYSIS
Strength
Weakness
Opportunities
Threats
1. Established brand name in the
cruiser market
2. Established market distribution
channel
3. Product Durability
4. Customer Retention
1. Export of bikes is limited i.e. untapped
international markets
2. Sales driven by Advertising
3. Customer Relationship Manager.
4. Innovation of Products
1. Dependence on government policies and
rising fuel prices
2. Better public transport will affect two-
wheeler sales
1. Weight of the motor cycle
2. High Pricing
3. Negligible Product Innovation

20. Price Place Products Promotion
Ranges between
INR1,16,000
to
INR 1,72,000
350 CC Models
500 CC Models
Elite Models
Showrooms
Dealers
Bike Consultant
Digital Marketing,
TV, Newspaper,
Magazines, Flyers

21. Competitive
Rivalry
Supplier
Power
Buyer
Power
Threat of
Substitution
Threat of
New Entry
Porter’s 5
Forces
1. Hero; Honda; Bajaj Auto;
TVS are the major
Rivals
2. Kinetic; Yamaha; Honda
are other players
1. Threat of New Entrants is very
Low.
2. New Entrants face challenge of
setting up sales & Service
Centre
1. High Threat as switching cost
is low
2. Other Substitute involve Bus;
Auto; Low-End Cars & Public
Transport
1. Low Supplier Power
as there are large
number of domestic
suppliers &
economic import of
auto components
2. The supply business
is fragmented
3. Abundant availability
of raw materials
1. High bargaining power of
the buyers
2. Availability of 6-7- major
brands give a choice to
switch
3. Buyers are conscious about
the product
4. Dependent on the service
provided.