Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management. The significance of this function is not seen in the 'Line' but also in the capacity of 'Staff' in overall of a company. It has been defined differently by different experts in the field.Royal Enfield was the brand name under which the Enfield Motor Cycle Company (founded 1909) manufactured motorcycles, bicycles, lawnmowers and stationary engines. The first Royal Enfield motorcycle was built in 1901; the original British concern was defunct by 1970. The Enfield Cycle Company is responsible for the design and original production of the Royal Enfield Bullet, the longest-lived motorcycle design in history.

1. ‘Made like a gun. .
Goes like a Bullet’
Sagar Dusane
MMS- B-11-(2015-17)
AIAIMS- Mumbai 01

2. What are we going to see ?
History
Organizational structure
Problems faced in the last decade

3. History
Beginning
The Enfield Cycle company
Redditch, Worcestershire
Brand name license – 1890
Birth of the bullet -1931
The Indian Connection
1949- Introduction into Indian market
1955- Indian army’s calling
Partnership with Madras motors
1971- Closeout in the UK
Eicher chapter
1991- Strategic alliance with Eicher motors
1994- Merger into Eicher Group and
conversion into Royal Enfield from Enfield
India
1996- Immediate compliance to stringent
emission norms
Post millennium
2002- Launch of India’s first cruiser
2003- First Rider Mania in Goa
2005- Fifty glorious years in India
2010- Successful migration of entire product
line to UCE

4. Organizational Structure
Board of directors

5. Problems faced in the last Decade
Keeping up with the times; Need for change
Board at the threshold of either shutting down or selling off RE
Sales down to 2000 units instead of 6000 units per month
Issues due to maintenance, weight and kick start
Support of Siddhartha Lal
Appointment of R.L Srinivasan as the CEO in 2005, who had earlier
worked in both TVS Motors and Bajaj
Design of a new engine and alteration in the gear position
Shop floor process tuning to improve quality
Gradual reduction in problems and warranty claims
And now? – 100% capacity and waiting period of up to a year

6. Royal Enfield
 Industry- Motorcycles, Bicycles, Lawnmowers.
 Founded- 1893, As Enfield Manufacturing Co. ltd.
 Headquarters- Chennai (India).
1st Motorcycle was built in 1901.

7. History
 In 1893 Albert Eadie and R.W. Smith started company by
name “The Enfield Manufacturing Company Limited” At
Redditch (England).

8. VISION
“To be recognized as the industry leader driving modernization in biking in
India and the developing world”
MISSION
“Aims to continuously improve biking efficiency in India and developing
markets. Customers are the integral part of the Organization & Creating a
Family of Bikers Bond”

9. 4 P’s Of Royal Enfield

10. Product
 IT MAKES US TO FEEL LIKE A LEGEND

11. Place
The royal Enfield bullet was first introduced in
Brittan in 1949 as 350cc bike.
The 500cc model was introduced in Britain in 1950.
1. Showroom
2. Online
3. Bike consultancies

12. This was the first look of bullet

13. Price
350cc Electra=1,16,000

14. 350cc classis=1,24,00
500cc classic=1,59,000

15. 350 cc Thunderbird=1,35,000
500cc thunderbird=1,72,000

16. Promotion
Internet
Newspaper
Advertisement

17. STP
Segment
Middle-class people who want a bike that is stylish and powerful
Target Group
Middle class youth from the age bracket of 25-35
Positioning
A powerful motorcycle for bike adventurers

18. Product Life Cycle
The product life cycle describes the period of time over
which an item is developed, brought to market and
eventually removed from the market. The cycle is broken
into four stages: introduction, growth, maturity and
decline. The idea of the product life cycle is used in
marketing to decide when it is appropriate to advertise,
reduce prices, explore new markets or create new
packaging.

19. Product life cycle of Royal Enfield

20. Product life cycle of Royal Enfield

21. Porters Five Forces

22. Threat of new entry
Movement of industry towards premium segments eg.
Karizma
Entry of exclusive foregn player
Buyer power
Availibilty of big popular brand
Nowadays people go to unique brands because of
good service they provide after purchase
Supplier power
Cheap import of auto component from china
The automobile supply business is quite fragmented.

23. Threat of substitution
There are many substitute available in the segment,
passenger car are considered to be the closest
substitute after the launch of world cheapest car Tata
Nano
Competitive rivalry
 The key players in two-wheeler industries are Hero
Moto Corp ltd., Bajaj Auto ltd and TVS motor Company
ltd. The other players are Kinetic, LML, Yamaha,
Majestic auto ltd, Royal Enfield ltd and Honda
motorcycle & scooter India.

24. Existing Product

25. New Products
 Mid-size motorcycle space ranging between 200-750cc
 R&D centre in the UK has been working on a new 600-650cc twin-cylinder motorcycle codenamed
'P61
Royal Enfield Continental GT
2.05-2.14 Lakhs
Royal Enfield Himalayan
1.55-1.78 Lakhs

26. Expansion
Royal Enfield, plans to invest Rs. 600 crore during the current fiscal for
product development
 Two R&D centres and expansion of manufacturing capacities in India
and the UK.
The UK technology centre will be operational by the second half of
2016-17 while the Chennai centre will be operational by 2017-18, he
added
2016-17, Royal Enfield plan to manufacture 675,000 motorcycles
Chennai-based firm sold 1,48,185 motorcycles best ever performer
March 31, 2016

27. Substitution For Royal Enfield
Strengths
1. Size and scale of parent company
2. Effective Advertising Capability
3. High emphasis on R and D
4. Established brand name in the cruiser market
5. Established market distribution channel
6. Exports motorcycles to 31 countries like the USA,
Japan, UAE, Korea, Bahrain, UK, France, Germany,
Argentina and many other countries
Weaknesses
1. Weight of the motor cycle can be an issue for few
customers.
2. Mileage of high cc bikes is an issue
Opportunities
1.Two-wheeler segment is one of the most growing
industries
2.Export of bikes is limited i.e. untapped international
markets
Threats
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

28. Substitution For Royal Enfield
Harley-Davidson - Harley 500m – 3.5 lakhs
Bajaj- Bajaj Avenger Street 220 CC & 150 CC- 75-85k
Yamaha R3
CBR 250
New enter Bikes in 2017
1.Avenger 400cc
2.TVS Motors- BMW-380CC