Royal enfield

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  • Presented by : MOHD ARIF ANSARI MBA Marketing
  • 1. introduction 2. Product line 3. Change in strategy after year 2000 4. Communication & distribution 5. Missing communication 6. Analysis of Enfield user & non user 7. Conclusion & recommendation contents
  • 20-Jul-14 Introduction One of the oldest motorcycle companies in the world, Established in 1891 at UK by R.W.Smith and Alber Eadie 1955 Enfield India Ltd is incorporated India , Countrys first four stroke motorcycle manufacturer 1994 Eicher group acquired Enfield India. The name changed to Royal Enfield, A unit of Eicher Motors Limited Turnover of Eicher is 5800 Crores in 2012 Royal Enfield Turnover is 900 Crores in 2011 Around 2600 employees are working for Royal Enfield 11 Brand Stores, 230 Dealers in India. Exported to 47 countries
  • 20-Jul-1 Royal Enfield had a wide range of offerings that all carry the same heritage and Classic ness while ensuring delivery of the best performance and technology to our loyal base of customers across the world. Bullet Bullet 350 UCE Electra Twinspark Thunderbird Thunderbird 350 Thunderbird 500 Export Classic EFI Classic Military EFI Electra EFI Electra Deluxe EFI Classic Classic 350 Classic 500 Classic Chrome Desert Storm Models
  • Change in Strategy after Year 2000: Marketing Mix: Product: Product which is the ruff & tuff all terrain motorcycle. It has been upgraded with technology such as EFI (Electronic Fuel Injection) for better response, heavy cast iron diesel engine of the earlier model has been replaced by a lighter but equally power full single cylinder four strike petrol engine which is made from aluminum. The gears have removed from the right side to left side to need general standards. But it was ensured that the VINTAGE and Macho appeal of the bike is not damaged.
  • Place: The market of Royal Enfield can be divided basically into two segments: 1. Metropolitans: Tier 1 &Tier 2 Cities. 2. Small Cities: Tier 3 &DH (District Headquarters) But in both the market it commands premium position. Hence the showrooms must be opened in the prime locations of the cities irrespective of metropolitans or small cities.
  • Promotion: It is promoted in MENs magazines, Adventure magazines, local print media, adventure trips i.e. Himalayan Odyssey and Fan Clubs. Price: It is premium product hence demands a premium price.
  • Segmentation, Targeting & Positioning (STP) Segmentation: It is segmented as a leisure and adventure curser bike. Though in Tier 3 & DH market it is associated with the social/status symbol. Targeting: It is targeting Bikers in the age group of 25-45 years of age, they are working executives as in the case of Tier 1 & 2 Cities and young, rich & powerful in terms of Tier 3 & DH. Positioning: In Tier 1 & 2 cities it is positioned as a leisurely, adventure, curser bike. But in Tier 3 & DH it is a bike which shows your social status is a symbol of your power in society.
  • Communication and distribution Indias first cult bike. Its an iconic brand to stay true to character and be proud of what is represents. Customers are value expressive, sense of independent Campaigns use cinema, print media Leave Home campaign - Thunderbird Exhibitions Photography The art of Motor cycling 2010. Sponsors trips/events Mark rides, Member rides through out the year Organizes Himalayan Odyssey Publications The beat, coffee table book etc. Forums, clubs, events No proper service channel structure Limited number of Royal Enfield zones Established the field quality RAF New company owned showroom After sales service is problem. Dealerships and expansion
  • The Missing Communication: In 1960s bullet as SHAAN KI SAWARI In 1970s its shown in SHOLEY movie & promote with YEH DOSTI HUM NAI CHORENGE The 1980s saw the entrance of Yamaha & Hero Honda. Yamaha was having excellent pick up and Hero Honda had excellent mileage. The problem started when Royal Enfield wrongly identified them as its competitors and started to compete with them. In 1980s They shifted their focus from the present loyal customers to the mass & much younger generation. Their Bullet- Machismo Ad clearly shows the confusion in their strategy. They had shown the impossible stunts which are impossible with a bike like Bullet.
  • Continues Bullet was for Joy of Riding ,Adventure, Shaan. Thus the phase from 1990 to 2000 can be called a dark phase and it nearly killed the Royal Enfield brand. Even the new masters of Royal Enfield who acquired them in 1994 were planning to shut down the Brand. In 2004 Himalaya Odyssey has been launched with great tag line JAB BULLET CHALE TO DUNIYA RASTA DE
  • Analysis of the non-Enfieldbike users 0% 5% 10% 15% 20% Below 20 20-30 31-40 40 and above 0% 16% 4% 1% 2% 10% 2% 0%0% 4% 3% 0%0% 2% 4% 0%0% 2% 0% 0% Bajaj Yamaha Hero Honda TVS KTM duke AGE 0 1 2 3 4 5 6 7 8 9 Bajaj Hero Honda Yamaha KTM Duke 7 3 2 0 5 1 6 2 9 2 4 00 1 2 0 Business Student Service Government service Occupation Demographic profile
  • Characteristics of Royal Enfield that attracts customers 0 5 10 15 20 25 Long journey vehicle Utility vehicle Status symbol Style statement 14 23 4 8 Purpose for purchasing a Royal Enfield 0 2 4 6 8 10 12 2 11 6 3 0 Features that attract the most
  • Analysis of the Royal Enfieldusers Demographic profile 0 5 10 15 20 Occupation 0 5 10 15 20 Below 20 20-30 31-40 40 and above 0 13 18 19 Age
  • Characteristics of the various models 0 2 4 6 8 10 12 14 16 5 13 15 1 14 2 1 Name of the model most purchased 0 5 10 15 20 25 50,000 to 70,000 71,000 to 90,000 91,000 to 1 lakh 1 lakh to 2 lakh 2 lakh and above 5 12 7 23 2 Cost when purchased
  • Customer satisfaction level 0 5 10 15 20 25 30 35 40 Strongly disagree Disagree Somewhat disagree Neither agree nor disagree Somewhat agree Agree Agree strongly 0 0 4 4 8 19 15 0 1 3 4 11 27 4 2 29 3 6 5 3 1 0 0 0 2 8 37 33 30 0 7 7 3 00 1 3 3 8 32 2 6 21 2 9 2 9 1 This is one of the best product I could have bought This product is exactly what I need This product hasn't worked out as well as I thought it would I am satisfied with my decision to buy this product Sometimes I have mixed feelings about keeping the product My choice to buy tis product was a wise one If I could do it over again, I'd buy a different make/model I have truly enjoyed this bike I feel bad about my decision to buy this product Owning this bike has been a good experience I am sure it was the right thing to buy this bike
  • Conclusion andRecommendations: . 1. The buying behavior is governed predominantly by the need for Power and respect for the iconic Brand. 2. The internal locus of control is by and large dependent on the Sense of Control the motorcycle offers and also on the Sense of Freedom that users associate with it. 3. Users are mostly Professional Males, 25-45 years of age, including some students. 4. Users display mostly Value-Expressive behavior and Ego-defensive behavior is not seen amongst responses. 5. People who choose not to buy Bullets do so because of high price, maintenance and spares hassles and also because some feel they are not built for it. 6. Advertisements are rarely recalled and are highly ineffective amongst non- Bullet riders. 7. Bullets are perceived as low on cost-effectiveness, but high on ride comfort and reliability.
  • The Recommendations are: 1- Improved Sales and Service Network by Franchise or dealership on Profit Sharing Basis. 2. Marketing Communication should focus on satisfying the needs for Respect, Power and Comfort. 3. A non-flamboyant well-built brand ambassador may be chosen to represent the Brand. 4. RE should tie up with adventurous students or corporate executives and arrange adventurous trips on weekends to locations- like Cherapunji, lonavala etc. 5. They should tie-up with adventurous brands like Thumps Up or Mountain dew to give a complete revamp of branding. 6. The RE Apparels available on their exclusive stores should be made available in college counters to make them available to the young students. 7. They can plan to export RE to other developing economies like- Brazil, China and Russia to capture the market there