Royal Enfield Franchise
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Entrepreneurship Management - Royal Enfield Franchise
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Royal Enfield Franchise
- 2. THE MADE LIKE A GUN, GOES LIKE A BULLET Franchise
- 3. Presented By: 1.Ameya Rao – 124 2.Karan Shah – 134 3.Mujibulla Shaikh – 141 4.Raju Thakur - 165 5.Ashutosh Tiwari – 168 6.Gurbinder Walia - 179
- 4. About Royal Enfield Oldest Surviving motorcycles. Founders – Albert Eadie & Robert Walker Smith. The First Royal Enfield motorcycle – 1901. Designed 2 motorcycles specifically for World War I. In 1955 Enfield partnered with Madras Motors – Enfield India. In 1994 Enfield India was bought over by Eicher Motors Limited.
- 5. Risk Avoidance. Marketing Assistance. Training Programs and Reference Materials. Strong Brand Position in Market. Why Franchising?
- 6. Why Royal Enfield? Company current growth rate is phenomenal. Vast Market – 180 Dealers, 1oo Authorized Service Centers in India. Very much Indian, Very much Desi. Profitable – Huge Fan following in India. Royal Enfield owners stand by it – Rock Solid Product.
- 7. BRAND VALUE CHAIN Customer Mindset: Awareness. Associations. Attitudes. Attachment. Market Performance: Price Premium. Price Elasticity.
- 9. Qualifications Substantial business experience. Precise Business Plan. Efficient Finance management skills. Leadership skills. Good credit history.
- 10. Application Process Apply for Dealership via Online Application Process. List of Documents required for application – Identity Proof. Bank Documents. List of Documents required post application approval – Verified Place Documents. Approval Document.
- 11. MajorInvestments Area Requirements – 4000sq.ft Location - Chandigarh. Rent – 30,00,000 INR. Liquid Capital Investment – 25,00,000 INR Royalty Fees – 5% of gross sales per month.
- 12. Business Model Particulars Rate Quantity Total Investments Rent + Interior Work 1 4300000 Customization of fixtures 1000000 1 1000000 Demo Material Motorcycles 200000 5 1000000 Gear (Helmet, Jackets, etc.) 5000 20 100000 Service Tools 1000000 1 1000000 Sales Stock Motorcycles 200000 25 5000000 Gear 5000 200 1000000 Total Investment 1,34,00,000
Editor's Notes
- We have planned to open a dealership of Royal Enfield. It is a British owned company. Their legacy is reflected in the company logo a cannon, and their motto, "Made Like A Gun“ which depicts endurance and craftsmanship of the product. Incidentally the logo on left is of original Royal Enfield Company reflects their background in weapons manufacturing.
- Royal Enfield is the oldest motorcycle company in the world still in production and Bullet is the longest production run model since inception. George Townsend set up the business in 1851 manufacturing components of cycle like saddles and forks later on manufacturing bicycles and quadricycle by 1890s. Albert Eadie and Robert Walker Smith took over the company in the year 1896. The first Royal Enfield motorcycle was built in 1901. In 1955, Enfield Cycle Company partnered with Madras Motors in India in forming Enfield of India, based in Chennai, and started assembling the 350cc Royal Enfield Bullet motorcycle in Madras. In 1994 Enfield India was bought over by Eicher Motors Limited.
- 1. Franchises have a higher rate of success than start-up businesses. 2. You as a franchisee don’t have to spend on marketing and promotion activities as the parent company does it for themselves. 3. You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. 4. . Franchises often have an established reputation and image, proven management and work practices, access to national advertising and ongoing support.
- The main reason behind choosing Royal Enfield franchisee is because of its phenomenal growth in year 2016 compared to 2015 which was 35% all over India. In 2015 3,54,025 Enfield’s were sold, this number immensely spiked to 4,77,688 in 2016. (Source- Auto.Ndtv.com/news/royal-enfield). Vast Market – 180 Dealers, 1oo Authorized Service Centers in India and also has roots in England and their business is spread in major countries like USA, Japan, UAE, Germany, UK, France and many others. The brand image transformation has been successfully carried over by Indian owners after the company exited UK market back in 1967 to such a extend that Royal Enfield is now blindly known as “Indian origin” company. Profitable due to huge fan following which stands by it due to its Rock Solid Product.
- Customer Mindset: Awareness: high brand equity & strong brand loyalty. Associations: associated with power, strength, luxury, ruggedness. Attitudes: It is perceived as a proud asset. Attachment: Lifetime loyal customer. Market Performance: Price Premium: Justified price due to engine capacity and uniqueness. Price Elasticity: Even if the price of the product increases the demand will remain same.
- Above are the models which will be available at our dealership center.
- Above are the necessary qualifications needed to successfully start a Royal Enfield Franchisee.
- One needs to visit the official website, royalenfield.com, and click on the ’Become a dealer’ link from the footer. A page will open up where you will find an international Performa for Royal Enfield dealership application form. Select the country, state and city from the given options. There you need to submit your contact information to the reviewing team of Royal Enfield franchise dealership (mobile phone number, contact address, postal address, email id and so on). You also have to give a brief description of your current business. The list of necessary documents required will be- Identity proof, Bank Documents, Verified Place Documents, Approval Document copy.
- The above is detailed break-up of various Investments or Fess we are liable to start-up the franchise.
- The table highlights detailed estimation of various expenses to will come across during the setup.
- STRENGTHS No Competition in 350cc and 500cc segments of the market. Proven product durability, Customer retention. WEAKNESS Less advertisement. Little/negligible product innovation. OPPORTUNITIES Introduce customer relationship management. Innovation of products. Offer better finance schemes. THREATS Movement of industry towards premium segments of 250cc. Entry of exclusive foreign players. Entry of other players in 350cc and 500cc segments of market.