Presentation By-BALASUBRAMANIAN VK-17020343034 SHASHIKANT D V-17020343035
Presentation By-BALASUBRAMANIAN VK-17020343034 SHASHIKANT D V-17020343035
Presentation By-BALASUBRAMANIAN VK-17020343034 SHASHIKANT D V-17020343035
BALASUBRAMANIAN VK-17020343034
SHASHIKANT D V-17020343035
HISTORY
ROYAL ENFIELD FIRST STARTED AS ENFIELD MANUFACTURING
COMPANY LTD WAS REGISTERED TO MANUFACTURE BICYCLES
IN REDDITCH, UK IN 1893.
FOUNDED BY ROBERT WALKER SMITH AND ALBERT EADIE.
ROYAL ENFIELD GAINED POPULARITY FROM THE YEAR 1955
WHEN INDIAN GOVERNMENT ORDERED 800 OF THEIR BULLET
350CC MODELS FOR PATROLLING THE INDIAN BORDERS.
COLLABORATION BETWEEN ROYAL ENFIELD AND ERSTWHILE
MADRAS MOTORS LED TO ‘ROYAL ENFIELD INDIA’.
ROYAL ENFIELD IS CONSIDERED THE OLDEST MOTORCYCLE
BRAND IN THE WORLD, SPANNING 3 CENTURIES AND STILL IN
PRODUCTION WITH THE BULLET MODEL ENJOYING THE
LONGEST MOTORCYCLE PRODUCTION RUN OF ALL TIME.
RECENT NEWS
ROYAL ENFIELD'S PARENT COMPANY EICHER MOTORS HAS SHOWN
INTEREST IN THE PURCHASE OF ICONIC ITALIAN MOTORCYCLE BRAND
DUCATI.
THEY CLEARED THE FIRST ROUND OF BIDDING AND LIKELY TO PLACE
AN OFFER BETWEEN $1.8-2 BILLION FOR DUCATI.
‘ROYAL ENFIELD TWIN-CYLINDER MOTORCYCLE TO DEBUT AT
EICMA’
SPECULATIONS REVEAL A PARALLEL-TWIN CYLINDER ENGINE, WHICH
HAS BEEN UNDER DEVELOPMENT.
ROYAL ENFIELD ENTERS US AND BRAZILIAN MARKETS’.
ROYAL ENFIELD BECOMES THE MOST VALUABLE BIKE MAKER IN INDIA,
OVERTAKING BAJAJ AND HERO MOTORS IN TERMS OF MARKET
CAPITALIZATION.
Industry Analysis
Indian motorcycle industry is the largest in the world with an annual
production of over 2.3 million units, overtaking China.
The total market size of the automobile industry is RS 540 billion rupees
and has been growing at 8% per annum.
In the last 4 to 5 years, the two wheeler segment has driven the overall
volume growth on the account of spurt of sales in motorcycles.
The country is now the second largest producer of two wheelers in the
world
In all, over 6.6 lakh Royal Enfield motorcycles were sold across the
world in 2016-17. The company is planning to ramp up its
production to nearly 900,000 motorcycles by the end of 2018.
Competitor Analysis
Bajaj Dominar 400
The Bajaj Dominar 400 was launched in India as the most powerful motorcycle
from Bajaj Auto on December 15 2016.
Bajaj has positioned it slap bang in Royal Enfield territory
It is powered by a 373 cc, single-cylinder 4 stroke engine based on the KTM 390 Duke.
The engine is tuned to make 34.5 bhp of power and 35 Nm of peak torque.
Enfield 350 VS Dominar400
KTM 390 DUKE:
KTM 390 was launched in India in November 2016 and is priced at
Rs.2.2 lakh, the KTM 390 DUKE breathes life into values that have
made motorcycling so amazing for decades.
The Duke 390, in addition to being much faster than the Classic,
also comes with ABS system which prevents the wheel from locking-
up in times of hard braking.
SWOT ANALYSIS
Segmentation, Target and Positioning(STP)
Segmentation:
RE has a niche segment and is classified as a leisure and adventure
cruiser bike in the Tier-I &Tier-II Cities.
In Tier-3 markets it is associated with the social/status symbol.
It is considered as a powerful motorcycle for bike adventurers.
The vehicle is considered more as a lifestyle brand.
Targeting:
It is targeting Bikers in the age group of 25-45 years of age, and
are working executives primarily looking for.
A leisure bike
A cruiser bike
Marketing MIX
Place:
The market of Royal Enfield can be divided basically into two
segments
Big Cities/Metropolitans: Tier1 &Tier 2 Cities
Small Cities: Tier 3 &DH (District Headquarters)
Promotion:
Promotion done through Adventure magazines, Auto and biking
magazines and local print media.
Sticks to the Vintage and Macho appeal it brings in all its
promotions.
Offers Adventure Rides to the existing and future customers.
Marketing MIX(Continued)
Price:
In India the pricing of the motorcycle is more towards premium
segment. It is perceived as an aspirational brand.
Customer’s Perceived Value
Royal Enfield Market Share
‘Rider Mania’ and ‘India Bull Rider’ are such initiatives which bring
the bike enthusiasts closer to this aspect.
Tour rides primarily segregated into the Marquee rides and events
conducted at a national level and subsequently into the regional
rides conducted through the regional showrooms.
Market Segmentation
Differentiation:
The Indian automotive industry has sub-segmented the motorcycle
in terms of vehicle pricing, power and mileage.
Sub-Segmentation of Motor Cycles on Basis of Pricing
Economy: Priced at RS. 50000- RS.70000 [100cc - 125 cc]
Executive: Priced at RS. 70000- RS.85000 [125cc – 150cc]
Premium: Priced at RS. 85,000 and above. [150 cc+]
The premium segment is further sub divided into various segments:
150 cc-200 cc.
200 cc – 350cc segment.
350 cc – 500cc segment.
500 cc + segment.
PRODUCT MARKETING STRATEGY
BRANDING THROUGH SOCIAL MEDIA
Marketing Strategy
Distribution Strategy
Royal Enfield distributes its motorcycles only through who
act as distributers of motorbikes in a specified area which
acts as producer to dealer channel.
Distribution Merchandise
Available in all branded Royal Enfield stores, RE followed the
promotion strategy first initiated by Harley Davidson
motorcycles. The various bikers merchandise available such
as helmets, gloves,jackets,boots,belts, protective gear etc.
Conclusion
The presentation objectively explains the rise of Royal Enfield from a
brand on the brink of extinction to the most aspirational motorcycle
brand in India.
It also highlights the segment under which the bike is positioned,
describes its closest competitors and where RE holds value vis-à-vis Bajaj
and KTM.
It shows the company’s ambition to further go upmarket by entering the
750cc+ segment to augment its declining market share in the 350cc+
segment.
Royal Enfield’s strategic acquisition plan of Ducati will counter Bajaj’s
‘Triumph’ acquisition and also set a platform to launch the brand into a
global league.
References
www.autocarindia.com
www.auto.economictimes.com
www.siamindia.com
www.//royalenfield.com
www.//en.wikipedia.org