Royal Enfield was facing declining sales and mounting losses by 2000, producing only 2,000 bikes per month against its 6,000 bike capacity. Siddhartha Lal and R.L. Ravichandran took over, aiming to increase market share without compromising the brand. They studied customer satisfaction issues and developed a new engine. Royal Enfield focused on leisure customers by introducing cruiser variants like the Thunderbird instead of lower-priced bikes. This strategy along with company-owned showrooms, promotional tours and factory visits helped production increase from 72,000 to 150,000 bikes annually to meet growing domestic and international demand. While new competition from Harley-Davidson may emerge, Royal Enfield's new Continental

1. Sushant Kumar Sinha
MBA-PM, Batch-13
Roll No. 58
A Marketing Management
“Miracle”

2. Evolution
 Made in England, Sold in India from 1949
 Redditch Company partnered with Madras
Motors to form “Enfield India”, on the
requirement of 800 bikes by Indian Military
forces, 1955
 Launch of “350cc Royal Enfield”, 1955
 Eicher Group bought into Enfield India, 1994
Around year 2000, board of directors at Eicher Motors decided to
either shut down or sell off Royal Enfield, as the sales of the bike
was down to 2000 units a month against the plant’s installed
capacity of 6000 and losses had been mounting for years.

3. Resurrection
 Mr. Siddhartha Lal (Promoter) along with
Mr. R.L. Ravichandran (CEO) gave the
necessary face lift to the dying brand.
 Challenge to the Management
Increase the market share of the bike
without compromising the individuality of
Royal Enfield and competing with various
other existing manufacturers in the
industry.

4. Strategy for Face Lift
 Study of Consumer satisfaction
Market study for the problem faced by existing
customers pertaining to various components
of the bike which led to the decline of sales.
 New Engine Development
Decision to move on to a new engine to
overcome all the existing problems faced by
current engine by the study of various leisure
bike manufacturers across the globe to
increase the fuel efficiency, reduced weight
and swapping of gear and braking system

5. Continued…
 Targeting Leisure Customers
Instead of launching a lower segment product
for the different consumer base, which already
has plenty of other players, it focused on
introducing more variants for the premier end
customers (Cruiser Bike- Thunderbird)
 Sales through Company owned Showrooms
Opened company owned showrooms to raise
customer satisfaction

6. Advertisement- Strategy
 Showcasing at Auto Expo, 2008
Presenting the Royal Enfield and Thunderbird
at Auto Expo 2008, with conquering the terrain
them
 Unique Advertisement
With Royal Enfield Leave Home campaign
Since then company has not come up with
new advertisements, rather now company
uses various other promotion strategy and
most importantly word of mouth for their
sustained and increased sales

7. Promotion- Strategy
 Organizing nation wide tours
Company organizes annual nation wide tours
for the existing owner their bike to showcase
the performance of bikes in the rough
conditions and for enriching the customer
experience
 Factory Tour
Company offers factory tour to the bike lover
on every 2nd and 4th Saturday, where
customers are taken to assembly line.

8. Outcome
Introduction of Variants
 Continental GT
 Thunderbird 500, 350
 Classic Dessert Strom, Battle Green, Chrome,
500, 350
 Bullet 500, 350, Electra
From the initial annual capacity of 72000 bikes
to current capacity of 1.5 lac bikes and still
with piling order for over a period of six month
company has planned to increase the
production up to 3 lac bikes to meet the ever
increasing demand from domestic and
International market as well.

9. Future
With the arrival of global brand Harley-
Davidson, the company may face a
tough competition in the leisure bike
segment.
But the company seems prepared for
the new challenges and it was clearly
seen by its recent introduction of
“Continental GT” to cater the demand of
still higher segment bikers