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6/6/22 MADE LIKE A GUN, GOES LIKE A BULLET…
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Royal Enfield

Sep 14, 2014

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Page 1: Royal Enfield

Apr 7, 2023MADE LIKE A GUN, GOES LIKE A BULLET…

Page 2: Royal Enfield

Presented by : MOHD ARIF ANSARIMBA Marketing

Page 3: Royal Enfield

1. introduction2. Product line3. Change in strategy after year 20004. Communication & distribution5. Missing communication6. Analysis of Enfield user & non user7. Conclusion & recommendation

contents

Page 4: Royal Enfield

Apr 7, 2023

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 , Country’s 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

Page 5: Royal Enfield

Apr 7, 2023

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

Page 6: Royal Enfield
Page 7: Royal Enfield

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such as EFI (Electronic Fuel Injection) for better response, heavy cast iron diesel engine of the earlier model has been replaced by a lighter but equally power full single cylinder four strike petrol engine which is made from aluminum.The gears have removed from the right side to left side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.

Page 8: Royal Enfield

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.

Page 9: Royal Enfield

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.

Page 10: Royal Enfield

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.

Page 11: Royal Enfield

Communication and distribution• India’s 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

Page 12: Royal Enfield

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.

Page 13: Royal Enfield

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”

Page 14: Royal Enfield

Analysis of the non-Enfield bike users

Below 20 20-30 31-40 40 and above

0%

2%

4%

6%

8%

10%

12%

14%

16%

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

Bajaj Hero Honda Yamaha KTM Duke0123456789

7

32

0

5

1

6

2

9

2

4

001

2

0

Business Student Service Government service

Occupation

Demographic profile

Page 15: Royal Enfield

Characteristics of Royal Enfield that attracts customers

Long journey vehicle

Utility vehicle Status symbol Style statement0

5

10

15

20

25

14

23

4

8

Purpose for purchasing a Royal Enfield

Durability Power Appearance Brand name Fuel efficiency0

2

4

6

8

10

12

2

11

6

3

0

Features that attract the most

Page 16: Royal Enfield

Analysis of the Royal Enfield users

Demographic profile

Governmen

t serv

ant

Business

Studen

t

Doctor

Teacher

Self -

employe

dOthers

0

5

10

15

20

Occupation

Below 20 20-30 31-40 40 and above02468

101214161820

0

13

18 19

Age

Page 17: Royal Enfield

Characteristics of the various models

Thunderb

ird

Machism

oEle

ctra

Classic

500

Classic

350

Standard

500Others

0

2

4

6

8

10

12

14

16

5

13

15

1

14

21

Name of the model most purchased

50,000 to 70,000

71,000 to 90,000

91,000 to 1 lakh

1 lakh to 2 lakh

2 lakh and above

0

5

10

15

20

25

5

12

7

23

2

Cost when purchased

Page 18: Royal Enfield

Customer satisfaction level

Strongly disagree

Disagree Somewhat disagree

Neither agree nor disagree

Somewhat agree

Agree Agree strongly0

5

10

15

20

25

30

35

40

0 0

4 4

8

19

15

01

34

11

27

4

2

29

3

65

3

10 0 0

2

8

37

33

30

0

7 7

3

001

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 dif -ferent 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 expe-rience

I am sure it was the right thing to buy this bike

Page 19: Royal Enfield

Conclusion and Recommendations:

.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.

Page 20: Royal Enfield

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

Page 21: Royal Enfield