THE EVOLUTION AND MARKETING

STRATEGIES OF ROYAL ENFIELD INDIA

1
Sr no. Particulars Pg no.
1. Introduction 19
2. Royal Enfield- Royal Indeed 21
3. Brand growth 24
4. The New Age Royal Enfield 36
5. Significance of Enfield 37
6. RE Takes over Harley Davidson 39
Mission of Enfield Riders
7. Royal Enfield Trips 41
8. Tete-a-Tete with the Royal 47
9. Enfield CEO
52
Royal Enfield Turnaround
10. 55
A Royal challenge for Harley
11. Davidson 60
Marketing Strategy Of Royal
12. Enfield India 69

13. The NSG Association 96

The New Era
14. 101

110
15. The Market Survey
Research Findings 125
16.

2
 EXECUTIVE SUMMARY
REs largely avoid traditional advertising, instead banking on operations
with Aficionados. Like Harley-Davidson (cruiser bikes in the most
expensive brackets), the RE features fan clubs, rides and events around
the world (until recently, traveled with the Continental GT535-CC in
Germany). RE's site is also "woven around stories, issues and solutions
to a hobby, the Royal Enfield Bike" says Lal.

The Red Pole Position is viewed by the mid-size segment (Global

Standards, 250-500-cc), which is an upgrade for commuter bikers. Its
lowest priced bullet is 1.02 lakh, while its 350-cc variant is priced at Rs
1.13-1.31 lakh.

It exports to the US, Europe and Latin America as a flagship model with
the flagship racer, Continental GT. For a brand that went for scrap-heap
about 14 years ago, this is definitely called a change of bullet speed.

In the year 1914 Royal Enfield assisted a large number of its machines
to the British War Department and also earned itself a contract with the
Imperial Russian Government.RE used its own 225cc two-stroke single
and 425cc V-twin engines. He also made the 8 Horse power motorcycle
sidecar model with the vickers machine gun.

3
  INTRODUCTION TO ROYAL ENFIELD

 Industry  Motorcycles, bicycles&lawnmowers.

 Successor  Royal Enfield (India)

 1893, as The Enfield Manufacturing Co.

 Founded
Ltd.

 Defunct  In the year 1971

 Founders are primarily Albert Eadie and

 Key people
Robert Walker Smith

 Royal Enfield Clipper, Crusader &

 Products
Bullet.

4
 REVIEW OF LITERATURE 2.1.

Introduction

The study of consumer behavior is to know the way an individual

spends his resources in the process of consuming items. This is an
approach that comprises of studies of the items that they buy and the
reason for buying and the timing. It is also about where they make the
purchase and that too how frequently (Schiffman and Kanuk, 1996).

Marketing aims in satisfying the demands of the targeted customer. The

domain of consumer behavior deals with issues affecting consumer’s
buying behavior. It aims in offering a clearer idea about the way
consumer makes the selection, buys, utilises and disposes the respective
product/service, experiences/ ideas, attain to satisfaction to the desires
(Kotler, 2003).

In general, in a day, a consumer makes many and varied buying

decisions. Many companies are involved in initiating market research to
derive consumer’s current buying behavior. According to Kotler and
Armstrong (2001) there are answers to - what consumers in general buy,
the way they buy, the item that they buy, the place of buying, etc.

The model for stimulus-response is derived to be the simplest way to

identify the buying behaviour of the consumer. This model is related to
marketing stimuli (following 4 Ps) added by some major forces (such as
political, economic, cultural and technological), leaving great impact
over buying behaviour.

Consumer buys are subject to get influenced heavily by cultural,

personal, social and the most importantly the psychological features.
Most of such concerns are beyond any control of the marketers, yet are
considered prior to any market orient decision (as by Kotler and
Armstrong, 2001). The process of Review of Literature 34 making
decision by the consumer does not happen in vacuum. As against this,

5
 social, cultural, psychological and individual concerns influence this
subject very strongly (Lamb et al., 2002).

To begin with the process of understanding buying behavior of the

consumer, it is important to see the model for stimulus response.
Environment and marketing stimuli get into the consciousness of the
buyer. It is the decision process of the buyer that leads him to a specified
decision. Buying behavior of the consumer gets influenced by social,
cultural, and personal issues (Kotler, 2003). In reference to any society,
the population gets categorized by prestige and power. As a result the
hierarchy of class gets decided (Assael, 1998).

Excessive impact has been noted in terms of social factors in the buying
behaviour of the consumer. Buyers are generally influenced by relevant
family members, reference groups, peers, etc. Their buying behavior
further depends on the need for personal factors such as gender, age,
lifestyle, education, income and personality. Many literatures are
available about these factors, being influential element in the process of
making a buying decision. Features of gender or sex are further
considered as relevantly important cultural feature. Every society has
products that are exclusively and very strongly connected with gender.
Thus, the same is worthy enough in terms of suiting gender in respective
category of the noted sub-culture (Schiffman and Kanuk, 1996). The
factor of age too affects consumption pattern as differences are
maintained under different age-related demands (Hawkins et al.,
2001).selection of a particular product is highly affected by the
economic status of the consumer. As for instance, his spendable income,
saving accountability, etc (Kotler, 2004). Income gets noted as the major
element determining the ability of the person to buy respective
products/services (Capon and Hulbert, 2001). In reference to marketing,
marketing mix remains Review of Literature 35 as an important domain
that influences the decision making process of the consumer.

6
 The venture of marketing mix comprises of all the aspects that a firm
can initiate to influence or create demand of the selected product.
Collection of various possibilities can get noted under four variable
groups, termed as- ‘Four Ps’, (Product, Price, Place and Promotion).

Environmental concern is indisputably an important topic for both

marketing practitioners and policy makers today. Not only because there
are severe concerns about the impact of consumers’ buying and
consumption behaviours on the environment (Johnson et al. 2008), but
because businesses are facing increased pressure to incorporate
environmental and social responsibilities into their corporate strategies.
Therefore, it is not surprising with statistics that many companies have
started offering environmentally friendly products as on option. In fact,
corporate social responsibility is deemed to be ‘‘a base requirement of
operating in the 21st century and is not an option’’ (Charter et al. 2002,
p. 8). As Nielsen’s (2014) Global Online Environment and Sustainability
study have revealed (it surveyed 30,000 respondents in 60 countries), 55
% of their respondents stated that they would be ‘‘willing to pay more
for products and services provided that companies are committed to
positive social and environmental impact’’. in Australia, Nature’s
Organics, the first and largest local player to market its home care
products based on green image held only a 3 % value share in the total
Australian home care market in 2011 (Euromonitor International 2012b,
c). Therefore, despite consumers’ positive attitudes and concernabout
the environment, and consumers growing environmental consciousness
(e.g. CEAP 2007; Eurobarometer 2011), several studies have revealed
that there is an inconsistency between green attitudes and behaviour of
consumer (e.g. Carrigan and Attalla 2001; Chatzidakis et al. 2004;
Pickett-Baker and Ozaki 2008).

As Carrington et al. (2010) note, it is apparent that many consumers do

not always ‘‘walk their Review of Literature 36 talk’’. In a recent survey
done few of UK consumers said they would be willing to pay more for
greener, organic and ethical cleaning products (Butler 2013). Yet, the
home care market in the UK continued to be dominated (between 2008

7
 and 2013) by traditional brands which are not promoted as
environmentally friendly (Euromonitor International 2013). Some
consumers continue to buy environmentally hazardous products
regardless of their concern for greener options (e.g. Strong 1996). Over
the past few years, numerous theoretical frameworks have been
developed to explain this attitude– behaviour discrepancy but no
definitive explanation has yet been found (Kollmuss and Agyeman
2002).

The gap between consumers’ positive attitudes towards green issues and
their inconsistent and uneven conflicting consumption behaviour
remains a concern for social marketers and policy makers (Moraes et al.
2012) because the current levels of consumption and consumers’
consumption choices are not environmentally sustainable.

2.2. Theories: The Background

Reddy1 -This research is based on “Consumer Behaviour Towards

Two-Wheeler Motor Bikes” in Hyderabad and Secunderabad, following
the sample of 100 consumers by making the selection over two wheeler
bikes such as Yamaha, Hero Honda and TVS. Relevant data are all
collected by structured questionnaire.

Soni & Soni2 -This paper offers survey results based on Consumers of
Two-Wheeled vehicles (followed by 100 users of two-wheelers from
rural and urban) in the district of Jodhpur, Rajasthan. The sample size is
relevantly small, yet the research brings showed some interesting
observations related to 1 Dr. K. Mallikarjuna Reddy, Consumers
Behaviour Towards two-Wheeler Motor Bikes. Osmania Journal of
Management. 2 Sheetal Soni and Abhishek Soni, Consumer Behaviour
towards Two-Wheeler Bikes – A Comparitive Study of Rural and Urban
Consumers of Jodhpur District of Rajasthan, Volume : 1 | Issue : 7 | Dec
2012.

general attitude meant for Indian Consumers for making the decisions
for buying, being widely implied over many consumer based products.
8
 Saravanan 3 -This research is trying to derive consumer behavior in
reference to showroom service meant for two wheelers. A sample size of
200 users gets selected on a random basis. The research followed
standardized questionnaires for the collection of data. According to the
results, users differ in reference to the behaviour of the consumer
behaviour meant towards the services as offered by the showrooms of
two wheelers attained through satisfied mode of random sampling. This
research is subject to illustrate level of consumer satisfaction in relation
with two wheelers under the features of socio-economic conditions of
gender, age, family income, occupation, level of educational, etc., noted
as descriptive study. Data get treated on the basis of collected statistics
through t-test, correlation and F-test. As per the attained result, students
as well as employees are satisfied about the services of the showrooms.
There are definite amount of demographic variables like marital status,
family size in relation to the services of the showrooms.

Mahrotra and Sharma- This research is about consumer behavior under

diversified kinds of two-wheeler as made available in the market. It
illustrates all the basic concerns that are affecting the process of deciding
about the buying behaviour of the individual. A sample size of 100 users
of motorbike gets selected on a random basis and as per the buying
behavior. Collection of data is accomplished through standardized
implication of questionnaires and some authenticated resources.
Analysis of data is managed by different statistical derivations. The core
emphasis of this research is based on three determined corporate players
in the field of two-wheelers. These are 3 S. Saravanan, N. Panchanatham
& S. Pragadeeswaran, Consumer Behavior Towards Show-Room
services of Two Wheelers with Referenceto Cuddalore District,
Perspectives of Innovations, Economics & Business, Volume 3, 2009 4
Professor Rajesh Mahrotra; Sachin Kumar Sharma, An Empirical Study
of Buying Behaviour of The two-Wheeler Users in Jaipur District Asian
Journal of Research in Marketing, Volume 1, Issue 5 (October, 2012)
Review of Literature 38 Hero Moto Corp Ltd., Bajaj and TVS. It
basically concentrates over male customers and derives cues about the
consumers for being highly stimulated through the socio-economic
9
 condition and issues of demography. The research concludes with the
factors about engine power and mileage that are affecting the buying
behaviour of the consumers and are not much concerned about the price,
delivering the power to buy and issues of demography, influencing the
buying behaviour of the consumer. Core challenges as faced by the
Indian manufactures are the ways to expose determinants directing
consumer in the process of making buying decisions of motorcycle.

Loudon and Della Bitta (1984)- “The Consumer behaviour is the

decision process and physical activity which the individuals engage in
evaluating, acquiring, using or disposing of goods and services”. In his
study, Keon (1984) laid emphasis on advertising, brand image and
behaviour of the consumer. The advertising seemed to remain effective
over current brands. As per Wood and Wilson (1985) consumer
awareness for a determined brands as well as ads of brands are subject to
affect the consumer’s intention to buy and his behaviour. As per a
survey led by Bajaj (1986) pattern of growth related to the industry of
two-wheeler is very much consumer-centric. Lallin (1989) researched
the behaviour of the consumer and perception of the price with a margin
of 50% consumers making right identifications of real status of
purchased brand in proportion with consumers in percentage, being able
to recall correctly about the purchase price of respective brand. As per
research of Guinn and Faber (1989), there is the compulsive mode of
buying in resemblance to compulsive mode of consumer behaviors in
diversified ways DhananjoyDatta (2010). Diversified factors followed in
reference to buying behavior are relied on motivation to purchase two-
wheeler. All these factors are inclusive of elements like advertisement,
referenced by family, peers, word of mouth, own experiences, price,
features of the product/service etc. as a result, survey gets done that
shows 51% customers accepting two-wheelers Review of Literature 39
and relevantly falling within the age group between 20 to 30 years,
where the level of income is Rs. 5000. A total of 64% consumers are
unmarried and prefer to use two-wheelers from Bajaj. The element of
motivation, in many cases is from friends (that is 44%) and family (with

10
 31%). People are also searching instalment plans as well as finance
schemes prior to the buying of two wheeler.

Prof. S. Saaravanan and Prof. N. Panchanatham (2009) discussed about

the promotional essentials for any product. As per the results, customer
considers many issues while investing their resources for buying a
product, like two wheelers. Still, there are many customers laying
emphasis over brand image. This research illustrates socio-economic
issues that actually satisfy the customers of two wheelers and students
and employees craving to the services as offered by the showrooms.

The core concern of this particular section is about reviewing concepts

and theories that are liable in terms of assisting to the process of deriving
the study. The basic objective of this study is to understand behaviour of
the consumer with reference to the meaning that defines it. The study of
consumer behavior is to know the way an individual spends his
resources in the process of consuming items. This is an approach that
comprises of studies of the items that they buy and the reason for buying
and the timing. It is also about where they make the purchase and that
too how frequently (Schiffman and Kanuk, 1996). Marketing aims in
satisfying the demands of the targeted customer. The domain of
consumer behavior deals with issues affecting consumer’s buying
behavior. It aims in offering a clearer idea about the way consumer
makes the selection, buys, utilises and disposes the respective
product/service, experiences/ideas, attain to satisfaction to the desires
(Kotler, 2003). Review of Literature 40 In general, in a day, a consumer
makes many and varied buying decisions. Many companies are involved
in initiating market research to derive consumer’s current buying
behavior. According to Kotler and Armstrong (2001) there are answers
to - what consumers in general buy, the way they buy, the item that they
buy, the place of buying, etc. The model for stimulus-response is derived
to be the simplest way to identify the buying behaviour of the consumer.
This model is related to marketing stimuli (following 4 Ps) added by
some major forces (such as political, economic, cultural and
technological), leaving great impact over buying behavior. Consumer

11
 buys are subject to get influenced heavily by cultural, personal, social
and the most importantly the psychological features. Most of such
concerns are beyond any control of the marketers, yet are considered
prior to any market orient decision (as by Kotler and Armstrong, 2001).
The process of making decision by the consumer does not happen in
vacuum. As against this, social, cultural, psychological and individual
concerns influence this subject very strongly (Lamb et al., 2002). To
begin with the process of understanding buying behavior of the
consumer, it is important to see the model for stimulus response.
Environment and marketing stimuli get into the consciousness of the
buyer. It is the decision process of the buyer that leads him to a specified
decision. Buying behavior of the consumer gets influenced by social,
cultural, and personal issues (Kotler, 2003). In reference to any society,
the population gets categorized by prestige and power. As a result the
hierarchy of class gets decided (Assael, 1998). Excessive impact has
been noted in terms of social factors in the buying behaviour of the
consumer. Buyers are generally influenced by relevant family members,
reference groups, peers, etc. Their buying behavior Review of Literature
41 further depends on the need for personal factors such as gender, age,
lifestyle, education, income and personality. Many literatures are
available about these factors, being influential element in the process of
making a buying decision. Features of gender or sex are further
considered as relevantly important cultural feature. Every society has
products that are exclusively and very strongly connected with gender.
Thus, the same is worthy enough in terms of suiting gender in respective
category of the noted sub-culture (Schiffman and Kanuk, 1996). The
factor of age too affects consumption pattern as differences are
maintained under different age-related demands (Hawkins et al., 2001).
Selection of a particular product is highly affected by the economic
status of the consumer. As for instance, his spendable income, saving
accountability, etc (Kotler, 2004). Income gets noted as the major
element determining the ability of the person to buy respective
products/services (Capon and Hulbert, 2001). In reference to marketing,
marketing mix remains as an important domain that influences the
decision making process of the consumer. The venture of marketing mix
12
comprises of all the aspects that a firm can initiate to influence or create
demand of the selected product. Collection of various possibilities can
get noted under four variable groups, termed as- ‘Four Ps’, (Product,
Price, Place and Promotion).

2.3. Consumer Behaviour

To better understand the choice of brand from the consumers’

perspective it is important to have an idea of the consumers’ behaviour
and their view of brands.

Ford et al. (1998), explains two different types of consumer behaviour:

cognitive and experience oriented. The consumers who have cognitive
behaviourare rational and logical consumers while the experience
oriented consumers have more emotional motives for buying a product.
In comparison, Dandeo et al. (2004), have defined four types of
consumer behaviour: rational, Review of Literature 42 unconscious,
learned and social behaviour. The different behaviours are characterised
by the order of the three steps: knowledge, attitude and action.

• Rational behaviour: If consumers have a rational behaviour, they start

to get some knowledge about the product and what the market may
offer. By evaluating the information they get an attitude towards the
product and finally they act; either buying the product or not. This
behaviour is more common when consumers are buying expensive
products like cars. (Knowledge→ Attitude→ Action)

• Unconscious behaviour: When consumers have an unconscious

behaviour they start with an attitude towards the product and the attitude
comes from emotions and feelings. From the attitudes the consumers
find information about the product and from that they get knowledge. At
last they have the action, their choice. This type of behaviour is common
when it comes to voting for politics. (Attitude→ Knowledge→ Action)

13
 •Learned behaviour: Reflexes settle the choice of product. When the
consumers choose a product they do not plan their choice; they do it by
habit. This behaviour usually occurs when consumers buy newspapers.
(Action→ Knowledge→ Attitude)

• Social behaviour: When consumers have a social behaviour they

choose the products depending on what social environment they live in.
Their lifestyle, status and influence from others decide what product
they will buy. (Action→ Attitude→ Knowledge)

Naturally, consumer behaviour is strongly influenced by the culture in

which the consumers have been raised. According to Kotler et al.,
(2009), there are more than just cultural factors that influence consumer
behaviour. Other factors are: social, personal, and psychological factors.

• Cultural factors are set of values and ideologies of a particular

individuals. It is the culture of an individual which decides the way he
acts. In other words culture is values of an individual which he learns
from his parents in childhood.

• The Social factors are things that affect individual lifestyle, such as
family, religion, or wealth. These can change with time.

• The Personal factors are the economic circumstances, occupation,

lifestyle, personality and self-concept that each individual consumers
have.

• The Psychological factors areattitude, perception, motivation, learning

and the beliefs of the consumers.

2.3.1. Consumer Buying Behaviour It is important to know theories

about consumer buying behaviour when someone is making a research
on choice of brand. As per Fiorito (1990), the consumer buying
behaviour depends on his attitudes, effort to commitment, intentions,
preferences, and way of identifying the consumers have.

14
 Figure 2.1: Buyer decision process Source: Kotler 2009

In the buying decision process-model as shown above, consumers are

passing through five stages in their buying decision process. In routine
purchases consumers usually skip some stages and do not pass all stages
at every purchase. In a minor purchase, information search and
evaluation are often left out. However, the above figure shows
consumers take all the considerations when facing a complex purchase
situation.

Need recognition is the first step in the model. In this stage the
consumers define a problem or something that they require. A need
could be triggered either by an internal or external stimulus. An internal
stimulus means for example when we are hungry and need something to
eat. An example of an external stimulus is when consumers see a
commercial on television and after that they decide a particular brand is
required.

15
 That is why it is important for marketers to find out what exactly
stimulus most often consumer activates interest in a particular brand.
Information search stage is the stage when the consumers start gathering
information. The information can be gathered from different sources like
personal source, commercial source, public source and experimental
source. As more information is received by consumer, the awareness and
knowledge of the brands increases.

Evaluation of alternative is the stage where in the consumers use the

information and basis that evaluates and grade the available brands. Here
it is important for marketers to know about the alternative evaluation.
The consumers are trying to satisfy some needs and first they are
looking for certain benefits by buying a special brand. Further, the
consumers look for the product features which can be price, quality and
other salient features which comes up in the consumers mind when
opting for the brand.

Purchase decision is the stage when the consumer actually purchases the
product. The consumers choice of brand might get affected by two major
factors one is attitude of others and other is unexpected situational
factors. Post-purchase behaviour is the stage wherein the consumers
compare their expectations with the perceived performance. Consumer
stands satisfied, If the expectations are the same as the product’s
performance, (Kotler et al., 2009). Consumer buying behaviour differs
depending on what kind of product the consumer will buy. There is a big
difference in behaviour when purchasing a car compared to purchasing a
toothpaste. Kotler et al., (2009) have made a buying behaviour model
with four different buyer behaviours.

16
 Figure: 2.2 Four types of buyer behaviour Source: Kotler et al.2009

Every consumer differ individually in willingness to try new products

and brands. This has classified consumers into different groups.
Innovators are those consumers who first adopt to the new products. The
early adopters are the next ones. The early majority adapt to the new
product before the average consumer. The late majority adapt to the new
product only after most people have already used it. At last, the laggards
are the last ones that adapt to the new product. They are tied by tradition
and adapt to the new product only when it has become a common
tradition itself. The innovators are risk takers. They like to try new
things and are more willing to take risks. They are often young and
mostly well educated. Further, innovator they more benefits of special
promotions such as discounts and freebies.

17
 2.3.2. Factors affecting consumer buying behaviour

There are many variables that impact consumer behaviour. These may
be individual, professional requirements and ethics, individual attributes,
professional ranking in addition to social impacts that extend to the
family, friends, associates and the entire community. An amalgamation
of such aspects assists the consumers to make their choices.
Additionally, psychological aspects including personal consumer
requirements, inspirations, individual outlooks, the learning procedure,
personality attributes are the parallels that function across varied
individual kinds and impact their conduct. The purchasing conducts of
the consumer are impacted by four principal aspects:

1. Cultural aspects

2. Social aspects

3. Personal aspects

4. Psychological aspects

Review of Literature 47

1. Cultural aspects: The cultural aspects impacting consumer

conduct can be described to be the sum of the learned ideas,
principles and conducts that act as guidelines for the consumer
conduct of all members present in the society.
The cultural aspects are acquired in the subsequent three
manners:
1. Formal knowledge

2. Informal knowledge

3. Technical knowledge.

The cultural aspects are the most basic elements that influence the
desires and conduct of an individual, a child who grows up develops a

18
group of principles, opinions, likings and conduct, through his family
and crucial organisations.

2. Social aspects: Social aspects including reference groups,

family and social functions and ranking impact the conduct of a
consumer.

PERSONAL ASPECTS: Individual attributes, the age of the

purchasers, life cycle stages, profession, economic settings, way
of living and character and self-concept also impact the
decisions of a purchaser.

PSYCHOLOGICAL ASPECTS: The ranking of needs

according to Abraham Maslow is in the order beginning from
low biological requirements to higher levels of psychological
requirements. Consumer motivation can be easily
comprehended when MASLOW’S hierarchy of human
requirements is employed. This can prove to be advantageous to
the marketer as he can distinguish what generic level of
requirement his brand can meet and thereby post his brand with
pertinent Review of Literature 48 marketing contributions.
Psychological requirements can be met by brands catering to
apparel and food.
There are three subsequent aspects that are likely to impact the
buying conduct of a consumer. These include (Hassay and
Smith, 2006)–

Civilization and sub civilization attributes – The value,

designs and outlooks that a common set of individuals agree to
and are transferred to the next generation are regarded to be
facets of civilization which also ascertain what may be allowed
to advertise a product. This also decides the clothes people
would wear; the kind of food they would eat, the domain where
they would stay and the way they would travel. For instance in
the US, keeping well, information, following personal
19
objectives and freedom are civilization facets. A change in the
manner of eating is the result of lowered time in the US culture.
This is being exploited by overseas publicity advertisements.

Societal reasons– Consumers need details and objectives which

are designed by perspective lenders, the family of the
consumers' and friends, reference points, class of belonging and
culture.

Personal causes- These vary from individual to individual and

include aspects such as population trait, sex, class, age group
etc. The motivations of individuals who make choices in
families vary – for instance similar items are purchased for
varied causes by the younger and older generation.

2.4. Marketing policy

As per researchers (Varadarajan & Clark, 1994), marketing

policies are linked with developing a marketing mix that allows
the trade to attain its aims in the intended market. It is
contended by Hamel (1998, p. 8) that the only manner how
latest entrants can be successful while having to deal with huge
resource drawbacks is policy originalities; in fact innovation can
be the only manner that existing players can renew their level of
success in the market. Review of Literature 49 Marketing
innovation can be described to be the degree to which the
activities undertaken to sell a good symbolise the crucial
variation between marketing customs in the segment of goods
(Andrews & Smith, 1996).An original or innovative policy
allows the enterprise to position itself in a way that is almost
impossible for its competitors to replicate (Barney, 1991; Porter,
1996).

20
The Cirque du Soleil was employed by Kim and Mauborgne
(2004) as an instance of an innovative or what is also referred to
as the “Blue Ocean,” policy. Cirque was aware that merely
attempting to defeat the competition by altering the
conventional performance actions would be useless in a
crowded and deteriorating sector. Their change commenced
with a new worth plan that stated “they reinvented the circus”.

In addition to other innovations, Cirque moved to an attractive,

elegant technique (good), a trendy comfortable location (place)
and relatively higher costs that matched the distinctive
experience. Consequently, the profitability of Cirque was
enhanced by a part of 22 in one decade. The most innovative
and imaginative trades have a chance that permits them to think
of techniques which allow them to take advantage of the ability
to exploit and develop new competitive places or redesign the
extant spaces. Imaginative marketing policies employ
imaginative value plans, modern costing prototypes, supply
networks which are driven by clients, or widened techniques
and methods for interacting with clients that react to their
particular penchants and concerns. These marketing mix aspects
have the ability to offer distinct client worth or provide the
purchasers a cause to buy the product. An imaginative or
original policy signifies that the enterprise is distinct and
impossible for rivals to replicate and hence may provide firms a
chance to gain an upper hand over its rivals (Barney, 1991).

21
 2.5 Marketing Strategy
Marketing strategy is an important factor for any firm’s successful
performance. However, good strategic planning itself do not confirm
success. Successful strategies include firm and effective implementation,
evaluation, and control mechanisms. Effective implementation of
marketing strategies is a function of control mechanisms (Jaworski,
Stathakopoulos, & Krishnan, 1993).Evaluation and control is a critical
link between the firm and its external environment because it helps to
learn with certainity how efficiently the firm is able to adjust to ever-
changing environmental constraints. Therefore, optimal firm outcomes
are most likely attained when strategy formulation and execution are
initiated together and in conjunction with the firm’s external
environment. This is a critical consideration given that the capability to
respond to environmental change is a major determinant of strategy
success (Cravens, Piercy, & Baldauf, 2009; Harrington, Lemak, Reed, &
Kendall, 2004). It has been postulated that only when Strategy
development, strategy execution, and strategy-control mechanisms are
modelled jointly would it be possible to understand well how the firm’s
marketing strategy has impacted its performance. Strategy development,
strategy execution, and strategy-control mechanisms thus need to be
strongly connected with the firm’s internal and external market
environments. It is necessary to follow this approach since the empirical
studies related to marketing strategy on firm performance either focus on
formulation (e.g. Thorpe & Morgan, 2007) or implementation (e.g.
Noble & Mokwa, 1999).

Thorpe and Morgan (2007) draw upon management and marketing

literatures to conclude that implementation is a mere bi-product of
planning, means that the implementation and planning should be
completely integrated. if firms wish to gain superior performance
(Bonoma & Crittenden, 1988; Feurer & Chaharbaghi, 1995) strategy
formulation and its execution should be Review of Literature 51
simultaneously applied. Inferences drawn from the literature for future
research indicate this is important to understand, but no studies joins

22
 both aspects of marketing strategy with firm performance. For instance,
the allignment between the companies operative culture with control and
input is unknown (Jaworski, 1988), and firm reactions to the market
environment and key marketing strategy factors need to be understood
(Bowman & Gatignon, 1995). The combined impact of these two
important factors, i.e developing and strategy implementation, relative to
the firm’s internal and external environments, need to be understood to
measure the effects on firm performance (Atuahene-Gimm & Murray,
2004). Moreover, marketing strategy cannot be done in separately
without considering its operational part. The firm’s external market
environment is constantly changing. Therefore the implementation of
planned action needs to be together so as to avoid any mismatch
between market need and firm ability. Moreover, once specific actions
are identified, if action is not taken on that, it could result in getting
fulfilled with competitor offerings (e.g. Cravens et al., 2009).

2.5.1 Marketing strategy implementation

However, On the other hand, Bonoma (contented that it is consistently
simpler to develop clever marketing policies in compared to ensuring
that they are successful under the restrictions placed by firms,
competitors and clients. Joyce, Nohria, and Roberson (2003), in half a
decade research of 160 firms discovered that success was extremely
linked with the skill to implement them immaculately. Execution
success is regarded to be the attainments of the policy’s aims by
enacting suitable activities opine Cespedes and Piercy (1996). Likewise,
marketing policy execution is described by Review of Literature 52
Noble and Mokwa (1999, p. 57), to be the endorsement and
authorisation of a marketing policy or tactical marketing initiative.

According to Hrebiniak (2005), implementation is tough and success is

possible only because it includes several small and big choices and
undertakes activities that rivals cannot see and thus find it hard to
replicate. Marketing researchers have chiefly analysed policy execution
from the outlook of matching tactical conduct (e.g., market orientation,

23
 innovation orientation) (Hurley & Hult, 1998; Matsuno & Mentzer,
2000), marketing organization structure (Olson, Slater & Hult, 2005;
Vorhies & Morgan, 2003), and marketing program content (Conant,
Mokwa, & Varadarajan, 1990; Slater & Olson, 2000, 2001) to product-
market policy. These studies validate that superior performance is
attainable only when a match between policy and organizational
attributes is attained.

2.5.2. Marketing Mechanism

Promotion -Promotion signifies the manner how the company interacts

with its probable clients. It offers data and encourages individuals; it
leads to enhanced knowledge, motivates demand and creates a variation
between the goods and impacts the conduct of the public. Promotion
will not be successful in converting a bad product into a good one;
however it is possible that lack of promotion adversely impacts a good
product; promotion comprises of all actions or techniques employed by a
firm to interact or endorse its goods in the market.

Promotional tools or promotion mix

1. Individual Selling: This comprises of individual interaction by

phone or directly; this technique is costly and needs a long time to
promote or advertise a good
2. Advertising: This can be regarded to be a paid non-personal
interaction with the intended (usually mass) market. It is cost
effective and can help the firm to interact with a large number of
people. It can also be employed by the firm to attain its long run or
short run aims.
3.Advertisement can be conducted through different channels or
techniques.

24
 A. Broadcast Media
• Television • Radio • Cinema

B. Print media:
• Tabloids • Journals • Pamphlets

C. Outdoor media:

• Placards and flyers.

3. PUBLIC RELATIONS AND PUBLICITY: Public relations

refer to a group of steps taken and signify the sum total of a firm’s
conduct in context to the community wherein it functions. This can
be considered to be either good or bad and is mirrored in the firms
standing and impression.

4. SPONSORSHIP: Sponsorship is a crucial part of public

relations and it is surely an instance that any kind of sponsorship
results in affirmative publicity for the firm.

5. DIRECT MARKETING: This is a collaborative marketing

system that employs more than one advertising channel to ensure a
measurable reaction at different locations.

6. DIRECT MARKETING COMPRISES OF: • Direct mail.

• Telemarketing.
• Door to door selling.
• Direct response advertising: ‘phone now’ or ‘fill in the coupon
ads.
• Home shopping of different kinds.

25
The aspects that influence the marketer’s choice in deciding on the
advertising mix:
a) Product Character
b) General marketing policy
c) Purchaser inclination phase
d) Product life cycle phase

7. SPONSORSHIPS: The firm has taken all possible steps in

supporting the important happenings both at an international and
local level. The biggest amongst them was sponsoring of the
“WORLD CUP”. Royal Enfield is the only two-wheeler company
across the globe to so. In addition to this event, Royal Enfield has
also sponsored events including “Master Golf”, television academy
awards, and the like. There has been a rise in the reputation of the
company after it has sponsored such events.

8. DISCOUNTS/OFFERS: The firm provides discounts and

other offers to clients who buy new bikes; for instance the World
Cup offers wherein any client purchasing a new bike was given a
free 1 gram gold coin.

However despite all the above schemes and advantages the

company does face intense competition in the segment with other
stalwart companies including Royal Enfield, kinetic, Yamaha, and
TVS.

Officially, the firm mentions that their objective is to positively

and continuously provide worth to their clients. They provide
consumers since they are successful. Majority of firms tend to give
a discount when the company was performing poorly in the
market. There is intense competition in this segment particularly
from Bajaj. However, RE has been successful as it focuses more
on the consumer in comparison to other firms such as Bajaj that
focus on their competitors.

26
 ADVERTISING STRATEGY

The firm advertises in varied media channels on a regular basis.

For instance, the firm uses advertisements on the TV, Magazines,
newspaper, and the like.

 Royal Enfield also arranges free service camps on an annual

basis.
 Royal Enfield also participates in trade fairs.
 With the help of ICICI,HDFC ,Axis Bank & finance
companies such as Bajaj Finserv & Captial one, RE has a loan
option for their consumers in addition to offering an easy
monthly instalment scheme for their clients.
 The dealers are provided huge commissions by Royal Enfield
India.

 The number of companies in the two wheeler automobile

segment (India):

 Royal Enfield
 Bajaj auto ltd.
 TVS motors company ltd.
 Yamaha motors India
 Honda motorcycle and scooters India
 Hero Motors
 Suzuki Motors

27
 Implementing changes in marketing strategy

 Firms periodically need to change their marketing strategies

in response to competitive moves, internally generated
opportunities, and development of technology. For example,
new growth in technology (e.g., Internet) may suggest that a
firm should serve its customers differently. Similarly, a new
competitor entering the market may prompt a firm to target
different customer segments and/or serve them differently. It
is relatively easy for firms to formulate ideas about how their
marketing strategies should change butimplementing changes
in strategy is very difficult.
 Researchers have long understood the importance of
marketing implementation (e.g., Bonoma 1984; Bonoma and
Crittenden 1988). The topic has received attention, though the
limited work has been done (e.g., Chimhanzi and Morgan
2005). Existing research on the topic falls into three sections.
One set of studies focuses on marketing implementation at the
organizational level and implementation by managers (e.g.,
Hutt and Speh 1984, Noble and Mokwa 1999, Walker and
Ruekert 1987). Another set of studies focuses on factors that
gives confidence to employees to initiate a change or take on
to it (e.g., Ahearne et al. 2010; Morrison and Phelps 1999;
Scott and Bruce 1994).
 A third set of studies examines the implementation of a
change by employees who directly handle the consumers after
an organization has decided on it—a major challenge
marketing/Sales managers come across (Colletti and
Chonko1997; Hurley 1998). For example Ye, Marinova and
Singh (2007) examine the effect of a cost control versus
revenue generation emphasis on frontline employees’
strategic change implementation. A strategic change can be
cause emotional stress to salespeople/ employees. Stress
theory initiated by Lazarus (1980) and Lazarus and Folkman
(1984), suggests that upon encountering a stressor event, such
28
as a strategic change, employees organise two kinds of
appraisals: primary and secondary. Primary appraisals involve
employees evaluating the incidents impact on their well-
being, which could be favorable or unfavorable Lazarus and
Folkman For instance a strategic change may require
employees to learn new skills, interact with new customers,
work for longer hours. Secondary appraisals involve
employees evaluating their ability to deal effectively with the
event’s impact on them by taking into consideration their
personal, social, economic, and organizational resources.
Thus in the previous example salesperson would judge their
ability to learn new skills, identify well to new customers,
give more hours to their work. Several researchers note that
primary and secondary appraisals are independent and can
occur at the same time. These appraisals effect employees
psychological, physiological, and behavioral responses to
stressor events Stress theory suggests that a salesperson facing
a change in market strategy of his or her firm conducts
primary and secondary appraisals of the change in strategy. If
the appraisals are favourable, the salesperson is more likely to
implement the change in. In Review of Literature 58 case, if
the appraisals are unfavorable, the salesperson is likely to
adopt a “hold on” attitude, resist the change, or even
deliberately obstruct it (e.g., by portraying the change
negatively to customers). What actions can supervisors take to
influence salespeople’s primary and secondary appraisals and
thus influence the extent to which they implement the change?
The above literature suggests that supervisors can focus their
attention on salesperson’s sellingrelated results, selling
processes, or even both. Thus, supervisors can encourage
salesforceto implement change in two major ways. First, they
can engage in result oriented actions that is, they can limit
salesforce risks associated with change implementation results
and emphasize rewards associated with them. Second, they
can involve in process-oriented actions.
29
 2.6 Marketing Strategy and Consumer Behaviour

Purchasers and people related to marketing desire to understand

the way in which and the reasons why consumers make their
purchases (Faber et al., 2007). Understanding client approaches
is a tough affair. Varied aspects are present that impact the
preference of their consumer. In contrast to the older times, the
preference process is has become extremely complicated and
assumed greater significance for the clients (Weinberg and
Gottwald, 2002). Clients today are exposed to several
promotions, news stories, and emails – all which portray
significant details and majorly which signify varied ideas.
Further the preferences of consumers have increased given the
enhancement in the item volume and kinds available, malls and
widening presence of multi-speciality shops and electronic
articles. These aspects have further confounded the preference
process (Target Group Index, 2007). According to Sproles and
Kendall, the perspective that distinguished clients in context to
their preferences is referred to as CDM or consumer decision
making method. Review of Literature 59 Usually, there are
three chief techniques that are used to assess the client
preference procedures (O’Guinn and Faber, 2009)–

30
Psychological or lifestyle technique– Several characteristics in
context to client conduct are described through this technique.

Customer typology technique – The clients are segregated

into different classes as per this technique.

Type of consumer method– The emphasis of this method is

on the realistic facets of the client preference process.

2.7 Indian Two wheeler industry

The auto component sector in India is not mature and is an
integral element in the economy of India. Off late, its
development has been extraordinary; it has witnessed a double
digit growth. Remarkably, it has also drawn the notice of trade
from prominent global auto makers. This industry enacts a
significant function in the automobile segment. A typical
vehicle Review of Literature 66 manufacture comprises of
several parts that are purchased from several ancillaries or
component producers. Competition while sustaining the quality
has been the maxim of the Indian sector and in particular with
the auto parts sector especially after the liberalisation of the
Indian economy in the initial 1990s. While, the local demand
for automobiles is being enhanced due to economic revival,
reduced interest rates and superior road infrastructure, a rise in
outsourcing by international automobile players has led to the
development of a large export chance for the Indian parts
producers.

31
2.7.1. Growth Prospects and Key Drivers of the Indian Two
Wheelers Industry

The rising demand for low cost personal transportation

solutions by the 300 million Indian middle class clients
signifies the growth that the Indian two wheeler sector has seen.
On the other hand, the two wheeler penetration (number of two
wheelers per 1000 inhabitants) in India is much less compared
to other Asian nations, notwithstanding the impressive growth.
This detail offers a promise for persistent growth in the Indian
market. When compared to other nations such as Taiwan,
Thailand, Malaysia, Vietnam, Indonesia and China, the
penetration rate of two wheelers in India is extremely low.
There are many aspects that would motivate the development of
the two wheeler sector in India in the current times. These
include:

Rise in India’s Young Working Population -The Indian two

wheeler market symbolises a huge growth potential thanks to
the increasing proportion of per capital income of people in the
country. This development is crucial considering the fact that
almost threefourth (70%) of India’s populace is below the age
of 35 Years and the working populace in the coming half
decade would see an augmentation of around 150 million
people. The growth of gearless scooters is a surety considering
the fact that there is a steady rise in the number of women in the
urban work force.

Rise of India’s Rural Economy and Growth in Middle

Income Households -The motorcycle sector in India also
stands to have a crucial promise to develop due to the rising
growth projection of the Indian rural economy. The penetration
of motorcycles has risen to more than 50 per cent amongst the
rural households that have an income level exceeding US$
2,200 on an annual basis. It is anticipated that the current

32
targeted two-wheeler segment is likely to grow at a CAGR of
10 per cent in households which earn an income ranging from
US$ 2,200–12,000.

Greater Affordability of Vehicles- A rise in the cheaply

priced vehicles has resulted in the growth of twowheeler sales
in India. An evaluation of the price trends signifies consistent
prices in the past. This can be attributed to the fact that the
manufacturers are trying hard to reduce their outlays or it is an
element of the marketing policy adopted by the producers with
the intent to improve their volumes. There has been a fall of
around 15%in the past half a decade in the operating outlays of
chief producers. Further, the client’s ability to possess a two
wheeler has been enhanced due to a rise in the avenues of
financing.

Rapid Product Introduction and Shorter Product Life

Cycle -The two wheeler sector in past half a decade has also
seen a large rise in new product launches. It is estimated that
producers in this time have introduced approximately 50 new
products which has resulted in the filling up all price points and
covering of different client segments.

Inadequate Public Transport Systems in most Urban Areas

-The extant infrastructure has been deteriorated due to the
economic boom experienced by the country and the result of
enhanced migration to urban areas from rural ones. This has
also resulted in traffic congestion in Indian cities and worsened
the bottlenecks. Poor urban planning has resulted in the
transport systems becoming outdated compared to the
economic Review of Literature 68 development and the rising
urban populace. This has further resulted in the rise of
33
dependency on individual transport techniques. This in
particular has allowed the two wheelers market to take
advantage of the extant infrastructure gap.

Challenges faced by the industry -The two wheeler market

has to deal with a few problems notwithstanding the high
growth attained previously and the high possibility of growth in
the times in come.

Rising Customer Expectations -Several new players have

been attracted to the Indian market thanks to the growth
experienced by the two wheeler industry in India. Thus, it is
anticipated that the level of competition in this industry is likely
to rise in the days to come. The client anticipations in context to
the dependability, styling, performance and economy has
increased due to the overabundance of products launched in the
industry.

Environmental and Safety Concerns- It is crucial to deal with

the matters pertaining to overcrowding of roads to handle the
ever rising need for two wheelers. Another crucial issue
pertains to the inadequate infrastructure for examining to
guarantee observance to the emission regulations. With the
growth of this sector, it is crucial to control the sale of second-
hand two wheelers in a systematic way; this is possible only
when a proper system is introduced. It is a possibility that
problems linked to emissions and vehicle safety would arise
particularly in the rural areas if the sale of two wheelers is not
controlled.

34
Creation of Distribution Infrastructure-Prominent firms
need to guarantee that in addition to developing sufficient
infrastructure with context to dealerships and service stations in
Review of Literature 69 urban areas, they also guarantee that
the distribution infrastructure in rural areas is adequately
developed.

2.7.2. Marketing strategy of Two-wheeler in India

BCG Matrix Representation of Automobile Sector among

various Sectors:-

35
When contrasted with the economic growth, varied industries
that exist have a varied growth rate. An economy that witnesses
the presence of several main industries also sees that they are
placed in varied positions in the BCG matrix. This position
depends on their growth and the input they make to the
economy. The chief segments in the Indian economy include
FMCG, automobiles, banking and insurance, steel, telecom,
software, pharmacology and retail sectors. Their position in the
matrix is denoted in the subsequent figure:

The BCG matrix is employed to ascertain the comparative

standing of a firm in a sector or the standing of varied SBUs of
any organisation, in context of the market growth rate and the
market share of a firm in the industry. Maruti Suzuki Limited,
Eicher motors, Mahindra and Mahindra, Tata Motors, Hero
Honda and Bajaj auto are the main players in the Indian
automobile segment. The above firms can be seen as Star, Cash
Cows, Dogs and Question marks in the BCG matrix. While the
Star refers to companies that have a high market growth and
high market share, cash cow category refers to firms with low
market growth rate but comparatively a high market share; the
segment question marks consists of the firms that have
comparatively a low market share but a high market growth
rate; lastly dogs represents firm

36
 First World War (1911–1921)

World War I (1911-1921)

Enfield Cycle Company (founded 1893) Royal Enfield is the name of

motorbikes, bicycles, lawns & fixed engines. The Royal legacy of arms
manufacturing is reflected in the logo, a field gun & their slogan "Made
Like a Gun". His first motorbike was build in 1901.

In 1955, RE Cycle Company, together with Madras Motors India, built

Royal Enfield of India in Madras and began assembling the 350cc Royal
Enfield Bullet motorbike in Madras. The first machines were assembled
from parts imported from Great Britain. Since 1957, Royal Enfield of
India has purchased the machinery needed to make parts in India and by
1962 all parts were manufactured in India.

The original Redditch, Worcestershire-based company was dissolved in

1971, but Enfield of India sustained and bought the rights to exercise the
Royal Enfield name.

History
In 1893, Enfield Manufacturing Company Limited was registered for
bicycle manufacture, adopting the branding Royal Enfield.

By 1899, Royal Enfield was producing a quadrilateral - with a four-

wheel frame around it and a rear ride saddle with a handlebar - and a
front mount passenger seat, powered by a rear mount Dion.

37
Enfield produced the first motorcycle with a 239cc engine in 1901 after
experimenting with a large bicycle frame fitted with a Minerva engine
attached to the front tube.

In 1907, Enfield merged with Birmingham's Allides and Onion

Pneumatic Engineering Company and began mechanized Enfield
automobiles.

By 1910, the RE 344cc was supported by the V-twin engine or the large-
displacement ZAP and the Vickers-Walsley engine by Swiss Motosco.

1913 Enfield 425 cc

In 1912, the Royal Enfield Model 180 Sidecar Combination was
introduced with the 770cc V-Twin Zap engine, which runs successfully
on the Isle of Man TT and Brooklands.

38
In 1914 Enfield supplied a large number of motorbikes to the English
War Department and also won a motorbike contract with the Imperial
Russian administration. Enfield used its own 225cc two-stroke single
and 425cc V-twin engines. He also made the 8 HP motorbike sidecar
replica with the Vickers machine gun.

39
 Royal Enfield Interceptor motorcycle

During the Japanese motorcycle manufacturers' raid in the late sixties

and early seventies, English factories made the final attempt with Series
I and Series II 1962– 1968 .Designed mostly for the US marketplace, it
is very chrome and strong, completing a quarter mile in under 13
seconds at speeds of 175 km / h (105 mph). It was very admired in the
US, but the classic mistake of not being able to supply this demand
contributed to the death of this English Royal Enfield.

Production of the Redditch plant ceased in 1967 and the Bradford Avon
factory closed in 1970, which destined the end of the British Royal
Enfield. Two hundred Interceptor engines were docked at the harbor in
40
 1970 after the factory closed. The engine was on its way to Floyd
Clymer in America; But Clymer passed away and his export agent,
Michelle of Birmingham, was left to marshal of the engine. He
approached the Rickman brothers for a frame. The main problem with
the Rickman brothers was always the supply of engines, so limited
Rickman interceptors were made immediately.As far as the motorcycle
brand goes, it seems that Royal Enfield was the only motorcycle brand
in three centuries and is still going on with continued production. Some
buildings of the original Redditch factory (2009) remain and are part of
the Enfield Industrial Estate.

Enfield Indians
From 1955 to 1959, Royal Enfields were painted in red and sold as an
Indian motorcycle in the USA by Brock House Corporation, controlled
by the Sales Corporation of India (and hence Indian Motorcycle), and
stopped by All American at Springfield plant But the American badge
was unaffected by manufacturing and the marketing contract expired in
1960, and since 1961, Royal Enfield have been available in the US
under his name. The largest Enfield 'Indian' is a 700cc twin, just like his
American predecessor.

41
 Royal Enfield India (Since 1949)
Royal Enfield Motorcycle has been sold in the country since the year
1949. In 1965, the Government of India was insearch for a motorcycle
appropriate for its police and military, which was used for patrolling the
country's borders. The bullet was chosen as the ideal bike. The
Government of India ordered the 800 350-cc model bullet, which was a
huge order at the time.In the year 1955, Redditch tied up with Madras
Motor to manufacture "Enfield India" in India, licensed under the 350cc
Royal Enfield Bullet Motorcycle (now known as Chennai) in Madras.
Under Indian law, Madras Motors holds a majority (more than 50%) of
the company. Tooling equipment was sold to Enfield India in 1957 to
manufacture parts.

Royal Enfield India manufacture and sells in India and export to the
United states, South Africa and Australia along with Europe. Recently
Royal Enfield has undergone a chief retooling, especially in the engine
segment, from carbonated cast-iron engine to twin spark unit
manufacturing engine, whose EFI is their main 500cc model. The retail
interest in these bikes has started a double shift in the plants.

In August 2015, Royal Enfield Motors announced it was setting up its

North American headquarters and a dealership in Milwaukee,
Wisconsin, to offer three bikes - the Bullet 500, Classic 500 and the
Continental GT535 Cafe Racer. They expect this engine size to represent
the underscore market. The dealership is Royal Enfield's first company-
owned store, said Royal Enfield of America President Rod Coops. The
company devices to set up about 110 dealerships in US cities starting in
Milwauke.

I live here, that’s why I'm biased. "To my mind, Milwaukee is the center
of motorcycling in the United States," said former Harley-Davidson
executive Coops.

42
 MARKETING STRATEGIES FOR ROYAL ENFIELD BIKES

 Public converse a lot about Harley Davidson and how gigantic it is as

a cult brand. People have seen and premeditated case studies in their
administration courses. When you read about Harley, one Indian
brand that certainly comes to mind is Royal Enfield's Bullet
motorbike.

 RE opened in the 1890s as a British brand name of motorcycles. In

1955, Enfield within India began to assemble bullet motorbikes under
the license of English Components, and by 1962 the entire bike was
manufactured. The parent company was to be dissolved in 1971, but
Enfield of India remained in Madras and in 1995 bought the rights to
use the Royal Enfield name. Royal Enfield is still in production, and
now Royal Enfield is the oldest motorbike company in the world, the
tallest model in production.

Royal Enfield Classic

India was initially a scooter market several years ago. However, over the
time people have altered the way they look and see bikes. The 150cc or
more bike segment is now trending in India, but the bullet is always with
250cc, 350cc and 500cc motorcycles.

Many bike enthusiasts across India see this bike as a trend. Now that the
Indian motorcycle market has evolved rapidly and aged, it is time, the
bullet must be re-established. Nowadays they are doing the same. For all
good reasons, they have been in the news lately. Royal Enfield held it
will invest more than Rs 66 crore from 2009 to 2011. Chennai-based
43
 export markets are expanding, with foreign sales expected to double
over the next five years.

It is a kind of statement that can start a conversation. A new way to

create a brand as a trend. Tagline is a huge 'leave home' (in bullet).
Royal Enfield Motors is bringing back the classic edition of the bullet.
The classic edition is based on the renowned original bullet of the 1950
era. On the company's website, there are a set of links, blogs, trip stories
and forum that make the bullet a trendy brand in their league.

The site appers to be like the Harley Davidson website. Now, with
Harley Davidson truly approaching India, there is a unseen possibility
for the bullet. The cruise bike is popular and the bullet is the obvious
choice for those who can't afford the Harlot. Also, there are many bikes
in the 200- 250cc segment that are launching in India, so people are now
looking for bullets for the attractive full-size High CC motorcycle.

Bullets are a ritual in Punjab. Community are provoking it, and they are
looking for it. The bullet is really a cult brand in Punjab and other
interiors in India. It is amazing how the Madras based brand has gained
cult position in Punjab. The need to influence the bullet to create itself as
a large cult brand name across India.

Bullet sponsors a number of trips to India, including bikes for trips and
branded T-shirts. The bullet hosts the Royal Enfield Himalayan Odyssey
for 16 days each year. All these techniques can get the brand to new
heights.

The main difficulty with the bullet is the cost The price of a regular
bullet is 80000Rs. With the new motorcycle coming at the same price,
the bullet does not have anything to lose.

44
There is a axiom about the bullet, "When you ride a bullet, you don't ride
a different bike.We know for sure.”

If you are looking for a time-tested Indian icon, look no more, this is
Royal Enfield. Founded in India in the year 1955, Royal Enfield is
celebrating its 50 year old continuation in India.
Enfield was intuitive in England in the mid 19th century. George
Townsend has set up a undersized industrial unit in Redditch Town,
England, to make stitching needles.
Later on the company commenced manufacturing bicycles & later motor
cylinders. In 1893, the goods were named Enfield.
Bullet was born in 1931. In 1935, the product took on a modern look.
This particular bullet was reintroduced in the year 1948-1949, and was
designed by Enfield chief draftsman Ted Pardoe of England.
In 1955, the first factory in India was established. In the year 1994 the
company was aquired by Eicher and the business was renamed Royal
Enfield India Limited.

45
The brand name has suffered during all its existence in India. The bullet
is forever a muscular machine. This creation is the only power bike and
cult following in India. Although the engine was not refined and caused
a lot of troubles for the owners,yet they treated it with respect.

But over the period of time, the bullet vanished in its way. The business
tried to play the volume market and failed dejectedly. Volume bike may
not be the reason for the product. It is not considered a regular bike and
requires a lot of care from the owners. A regular bike can be roughly
treated but not a bullet because if not taken care of, it can cause a lot of
headaches for owners.

Additionally, the product created a lot of psychological barriers for

potential employers. The weight of the bike is discouraging the thin
people, while the rest of the rival gear / brake positions are intimidating.
Kick needs commanding legs and so on.Enfield realized very recently.
With the new youthful blood (SiddharthLal) at the wheel of Royal
Enfield, things are looking up. The business relaunched the brand with
new communications & logos, fixed the motorbike’s faults & rebuil the
actual product.

The start of Bullet Electra & the introduction of the Cruiser Enfield
Thunderbird and the Electric Start system for Bullet have been popular
with bike lovers. The bullet also changed gears / brakes to suit regular
bikes.

46
 The bullet is no longer designed as a routine bike but for the general
public,it connects to the “pleasures of biking” and tags the manly
personality. These campaign are well executed by RMG David.They
clearly demonstrate the brand's importance on supplementary bikes. It
says, "Every body makes its way to the bullet." The RE Thunderbird is
launched as a cruiser motorbike and has already made its occurrence in
this segment.

TNS Auto Division's recent Customer Satisfaction Survey ranked the

bullet top in customer contentment. This shows that the company has
efficiently improved the excellence of the average machine.

More than Royal Enfield, Bajaj has served as chief executive officer of
Ravi Chandran. Ravi Chandran is well known in the business as a design
expert and marketing person.

Royal Enfield gains prestigious position in India and the company has
incorporated its actions together. In the coming years the brand will
reach its deserved position in the motorcycle segment.

Royal Enfield –Faster than the Bullet

A brand that rose by 54% in FY13, 68% in the year FY14 & 60% in
FY15, is not what we choose to converse about in the pages of IAR. But
who says we are always responsible for the terrible news?

We found Royal Enfield (REML) at an appealing time in his life. The

business successfully built a rolling cancellation sale on 3 main

47
 production lines, three engines and one chassis. Also, it has redefined
biking in India and created the worst disposal difficulty in Ladakh.

Harris Performance, the UK's most recent acquisition - people who have
engineered more chassis in the REML flagship Continental GT -
indicates that senior management is up and going hungry for the world.
It also tells us that people who run the business are alert of the
company's shortcoming in practice and product progress.

Siddharth Lal (promoter and CEO of the company) pointed to his recent
decision to move to United Kingdom for a year to hub on new product
expansion, and he knew that the company's potential prospects were in
the export market. Mid segment motorbike means Royal Enfield plays
and REML sees huge potential in worldwide markets.

Fast Growth
 In the last 3 years, Royal Enfield has almost lost its sales. To make
the things even more impressive, REML sales in 2015 were nine
times the sales in FY08. This is a CAGR of around 36.87% over the
last 7 years and 60.39% over the past 3 years.

 This is remarkable by all account, especially in the industry which

grew by only 12.55% over the matching period.

 Emerging Markets Automotive Advisors (EMMAA) continues

REML's assessment as the fastest rising mainstream motorbike brand
in the next decade. According to the most recent forecast update
released by the company, REML should end the current fiscal with

48
 445,000 units of domestic sales and 2021 units with over 9,42,000
units.

 In doing it, REML has moved from a niche manufacturer to a volume

manufacturer. It is fully dominated by all the SIAM defined sectors of
participation. It outsources all imports to big-capacity motorbike
brands.

 While REML has at all times driven the Piaggio or Vespa in the
Indian market, it has now outperformed the Mahindra and Suzuki.
Without even manufacturing it cheap scooters.

 Media companies are pleased to report that Royal Enfield is

outsourcing Harley-Davidson worldwide. This news is largely about
how Hero Motors has overtaken Northern America since birth.
Frankly, this is an apple, and there is nothing else to compare that is a
part of this analysis. Somehow, it also pops up later to create an
aspect of the business we want to analyze.

 REML's volatile growth began in 2011 with the launch of the classic
series. Although Royal Enfield has always had character, it has been
brought to the classic style and built to some degree more than
traditional Royal Enfields. The company has been struggling with
waiting list for the next few quarters due to inadequate production
capacity. REML has in fact followed suit with many variations of the
classic, mostly based on the paint job and the extent of the chrome.

49
 The real tectonic shift began when REML actually decided to replace
the gear shifter and brake lever on the way to the old English-Royal
Enfield while waiting for the classic avalanche to take place. Could. .
This swap facilitated the effort in gear-shifting and operation, with
the introduction of the Unitary Manufacturing Engine, making it
easier to operate as the Royal Enfield Honda. In a way, it is parallel to
the power steering of the motorcycle. You don't need grape size balls
to travel at Royal Enfield.

 All this was done in a 'production machine' without any sacrifice.

This is high-quality news for thousands of bikers who are going to
buy Royal Enfield anyway. This is even more good information for
the thousands of aspirants who have never purchase a a Royal
Enfield.

Suddenly, thousands of bikers hid the Royal Enfield. Although Harley-

Davidson has always been an antidote to the public life catastrophe,
Royal Enfield has become the trademark of knowing when you are a
person; You believe to be a classic person.

Massage has influenced the rest of the classic showrooms as demand for
the customary Bullet Electra and Thunderbird range has improved. The
Thunderbird series reopened in 2012 and delivered a boom in sales.

However, and there is always one, the company relies on classics.

According to recent statistics, the Classic range (350 and 500) accounts
for more than 55% of the company's total conjugal sales.

Considering the many variations of the classic account, exporting

multiple numbers is a different story. However, the Continental GT has
an edge based on the single model name.

Trusting the classic should not be a cause for concern. Many Enfield
find their mechanical on the similar drawing board. This side of the

50
 Thunderbirds is the classic, most luxurious Royal Enfield, meaning
profit margins only. So clearly - the company is in full force for the
Classic.

However, this condition is like Maggi noodles seasoning.Sure, the spice

is good. However, other flavors are so light that even small retailers do
not stock them. For fasting by the Hindus, the company should way out
to such experiments as Oats Magi, Atta Magi, Dal Magi & Water
Chestnut Magi.

Okay, so we did the last thing, but the thing is most of the sales are still
from Spacey Maggie. Ingredients can also be added to new variants,
such as oats, eta and lentils, but still depend on the same spicy flavor.
This is lesser of a problem and more of a headache for the company.
You have success, how do you repeat it with the expectations?

The current defeat of the Continental GT suggests that this is no easy

task.

RE Continental GT
Discussing about the Continental GT gives us a real dilemma.The
Continental GT, launched in the year 2013, is the most expensive REML
bike ever - priced around Rs. 2,00,000, twice the entry price of bullet
350 Twinspark.

This is REML's main belligerent bike with completely new cafe racer
styling and high class bicycle parts. With chassis input from
Northumberland-based Xenophia with Harris performance and style,
REML has left no stone unturned for the RE Continental GT. Media
reviews have been well received by European journalists, mostly
because of the low price for their market.

51
However, the domestic reaction was cold. Launched during November
2013, Continental GT Home Delivery reached 388 units in April 2014.
In the last twenty months, sales have crossed 200 units per month.
REML shipped 26563 units (twelve months rolling average dispatch
volume) of its 350cc series in July 2016, while the Continental GT
dispatch totaled 198 units. Considering the profit margin on the GT, the
Bullet 350 is a few hundred basis points superior than the Twinspark.

Instead of profit boundaries Royal Enfield is extra concerned with the

company suggestion that the customer should trust the price. It's killing
the pricey glass roof on the Moto

Buyer believes that Royal Enfield bikes should be priced at a firm level,
rather than profit margins (very healthy!). This is killing the glass ceiling
price in the motorbike market.

The goal of potential product development is to play inside the roof now
and deliver value and benefits or to tear the glass upper limit. While the
first is simple, the second requires a significant development in product
image as well as brand picture.

Richness of Portfolio
 Comparing the Continental GT Vs. 350cc range dispatched volume
also brings us to the next difficulty - the merits of the REML
assortment. The business manufactures motorcycles in 3 engine sizes:
346cc, 499cc and 535cc. Nevertheless, sales of 346cc machines
exceeded the others.

 As of June 2015, 346 CC machinery accounted for 89.5% of

dispatches. It is a huge customer who tends towards low cost
machines.The number is 89.5% actually an enhancement for high

52
 efficiency machines. As of 2011, he had a sales share of over 5%.
However, the commencement of the Classic has moved many new
customers to buy the 500cc version.

 As a result, the split of high-capacity machinery in REML's sales mix

increased to 9.48% at the end of 2011. This particular share rose
10.95% from Q3 2014. However, since then the customer mix has
again shifted to 346cc and the share of high-capacity machines
decreased to 10.52 percent in 2015 Q2.

 For the sake of simplicity, we expect the margin to improve as the

engine size increases further, as its 346cc Classic 350 is 30% more
expensive than the 499cc Classic 500. In practice, many components
have not changed. The price between 350 and 500 is important, so
margin gain is good quality at higher engine sizes. In short, leaning
towards REML 346 CC machines will result in some margin loss.

 However, in the segment, the customer’s tilt is more towards high-

cost, high-margin classic models. This suggests that the customer
wants to get a brand and classic style - and what good news for Royal
Enfield. However, in the brand, it doesn't matter if the engine is petite
or large.

 In a way, the features of the Royal Enfield brand - comfort, way of

life, cruises and independence - owe nothing to excessive supremacy
and more cubic inches.

53
  This leaves numerous question marks on future product growth. If
high-power and large-engine customers aren't what they want, what
service should REML offer?

 The recent comparison with Harley Davidson once again illustrates

the Indian medium, which highlighted an issue for REML. REML has
ambitions to become a global motorcycle power, in line with the
ambitions and directions taken in the recent past. Theoretically, it has
everything it needs to offer - a legacy brand, beautiful bikes, massive
domestic volume, improved quality level and a very affordable price
point for most advanced market audiences and a competitive price
point for emerging market audiences.

 On the other hand, a look at the export statistics reveal that the export
is still at an early stage. The bigger positive result than the number is
that First Classic & then Continental, are pouring exports. Exports
have doubled in the last two years, with REML adding new markets
and offering superior products. The business insisted on being
recognized as a global brand and for consumers of British heritage -
Continental GT launched with a ride from London's iconic Ace Cafe
to Brighton. This is before the real launch in India.

 In theory, REML has a mammoth international opportunity - the

affordable classic mid-size bike market is less penetrated worldwide.
Although the Harley-Davidson engine class is in line with the Street
500, it is a bit more luxurious than Royal Enfield offers, meaning
both are essentially fighting in different sectors of the market. Others,
such as Triumph, are older and more twins. There are plenty of
ambiguous Russian, Chinese, Czech and universal manufacturers, but
none of them have a legacy worthy of Royal Enfield.

54
 But, Royal Enfield has its own quality problems. Although the build
quality has enhanced significantly, it is nowhere near the Japanese
defined benchmark. Fortunately for RE, this is a knock-on for quality
enhancement. The company has new platforms in development, which is
always good news for quality improvement. And then it works in the
classic bike market segment, the segment that forgives quality issues. H-
D with the Street 750 also helps to have a quality day, the problem is
that the brand name is now busy.

Having said this, it does not resolve REML with quality issues. Most
Continental GT riders we talked to were not very happy with the class
and vibration levels of the bike. They sense more because they
compensated twice as much as the basic bullet 350 Twinspark and the
promise in the GT didn't match the original manufactured goods.

55
 Tip of Iceberg – Opportunity or Shipwreck waiting?

Unsurprisingly, Royal Enfield's policy for a rich heritage brand has

failed to exploit it on a large scale. Parts and Accessories and
Commodities Sales (PAM) is the cream of the majority heritage brands.
For some, like Ferrari, they are the main occupation. For others, like
Harley-Davidson, they have about 17% more revenue compared to good
earnings. For Royal Enfield, they are in progress.

The trouble with PAM is that it has to grow from scratch. This is part of
identifying and nurturing vendors that provide the best quality and
design that will enhance your brand's features. Royal Enfield is the
initial baby step in this direction. The company has now opened a full
range of merchandise in online stores and the company's exclusive
merchandise store at some profitable locations in New Delhi.
Considering that REML has selected the most exclusive shopping
centers in New Delhi to open its stores, this is a step in the right
direction. There is no way the stores will soon become profitable, but the
idea is to promote the Royal Enfield brand and make the area a better
place.

However, the PA part of the PAM is uncertain. For someone like Harley,
PA alone accounts for 11.5% of revenue. Royal Enfield needs to
collaborate extensively with brand tuners and aftermarket experts to
make the area a reality. This also requires extensive work by the
company's own engineering department. It’s not there yet but it could be
the next footstep for the brand.

56
 New Product - A Himalayan Work
Royal Enfield has numerous similarities with Harley-Davidson. Both are
iconic, both feature, and both boast unique brand loyalty. As long as the
adjudicators are with their fans, the two brands will get away with this
murder. Harley-Davidson has always been at the forefront of technology
and is being led by Japanese manufacturers. This has stopped the North
American cruiser bike market from booming.

 New Products – A Himalayan Task

Royal Enfield has numerous similarities with Harley Davidson. Both are
iconic, both have specialty, and both have unique brand loyalty. As long
as the jury stays with their fans, the two brands will get away with
murder. Harley-Davidson has always lagged behind technology
manufacturers and is being led by Japanese manufacturers. This hasn’t
stopped the North American cruiser bike market from growing faster
than it is chanting.

As a result, Royal Enfield has been selling the classic occurrence for a
long time, almost unreleased - for the majority part they are selling the
classic motorbike with many changes & not wearing the classic clothes
like modern bikes. It works as long as the purchaser is already. Even
further than a certain point, when you go into new markets and have to
tell your story repeatedly, customers will also want to see your product
for a long time.

57
 Media reports - the IAR scoop is not in industry - indicates that the
business is working on 2 new platforms. Keywords mean innovative
engines, new transmissions and new chassis in industry example.
Unnecessary to say, the other component modules - suspension, brakes,
light and tires are completely new specs.

The engine sizes of the 2 new products may range between 370 cc and
750 cc (according to media reports). Those of us who look like singles
and twins in the works. Solitary is required to restore / complete
REML's current engine range and packs in significantly more output
than Royal Enfield's present range of singles. It also has to comply with
Euro V and Vi and noise output set of laws in developed markets.

Twins are an additional level of utter unfamiliarity. The 750cc Twin is

high power, requiring mechanicals beyond the comfort zone of REML.
Harris' performance doesn't matter right here.

During this analysis, we mentioned that Harley-Davidson and Royal

Enfield are parallel storytelling brand. These 750cc twin paths intersect.
In fact, it is also a platform in which the path of REML becomes
Triumph and Japanese. The Twin 750cc doesn't just mean a bigger
engine, it also means a rise in prices. This means that Royal Enfield goes
for iSporters and asks for 50% - 60% more money than the Continental
GT.

Is loyalty to the brand name? The Continental GT experience poses a

tough question in the domestic market. Nevertheless, the international
market is a completely dissimilar game and if it plays its cards right,
REML takes a big shot at success.
58
59
 The Brand Drives the Bike

 The astonishing aspect of the international automotive analysis

business is that 2 wheelers are not measured part of the automotive
business. Concessions are offered to markets such as India, ASEAN
and China, where 2 wheelers are the means of transportation. In
global developed markets, two-wheelers are a lifestyle and therefore
every brand wants to establish a niche for itself.

 RE operates in the classic road-bike segment, defined as top-notch

quality and construction machinery. Radicals supporters did not win
Mind Machines with the opening scene evocative of a faction classic
YouTube video. However, if the paintwork stops within months, they
will be very angry. The amusing thing is that the price of these
machines outweighs the scope of the argument until the brand is
solidified enough. You need to look at the Harley-Davidson price and
their yearly report to see what margin they enjoy.

Royal Enfield is a sought-after brand. Where the money is. Improved

brand recognition gives them greater export statistics superior pricing
power and enhanced margins.

This is also where you can hire top honors like Unilever's Rudratz S. to
lead your brand uniqueness, sales and retail efforts. REML appointed its
new president in January this year. Rather than hunting down industry
veterans, the company chose a soap and shampoo man to run his
motorcycle business, a sign that RE is serious about its brand image.

Subtle efforts have appeared since then. The company has opened
specialty grocery stores in Delhi and a specialty brand store (now two
stores) in UK. Future Royal Enfield dealerships are anticipated to follow
the same pattern as their UK stores.

60
It is a long way from a decade ago whilst it was difficult to distinguish a
Royal Enfield dealership from a three-dealer dealership.

Backward stupidity?

The craze about routine is that it takes time to get going. Moving from
scavenging to a hut is not something that happens suddenly. It would
take several months, perhaps time, before the British-origin biking torch
was taken seriously and miles away from the RE. Some attempts have
started to work well, others are still remakes of the slope.

Take an enthusiastic speak section on Royal Enfield's UK Store

homepage. This includes wannabe supplier, job seekers, poor language
people, and all-time SEO for RE's website. It's okay to be open to
comments and we like it. Shakti N is committed to showcasing his
valuable London store homepage. The last thing a well-informed classic
motorbike enthusiast would like to see on your classic preferred brand's
website is to find someone looking for a job by using the homepage.

 The Production Capacity

There is also the question of production efficiency. In the early days, it
was a substance of pride when the classic had almost a 1year's waiting
list. While the waiting list continues after launch, it is a deprived plan.
Growth of the company is unprecedented and often makes it difficult to
combine product with sales. Royal Enfield is slow in expansion
capacity. Currently, the company's operational capability is sufficient to

61
meet the probable 2015 demand. By the end of this year, REML plans to
expand it to 6,00,000 units, with another two years to go.

The Separation Time?

 Part of the slope is the Eicher brand.A brand that is remembered for
tractors and is recognized for its capable weighty trucks. Because of
its history, RE still runs with parent company Eicher Motors. While it
does not face operational challenges, Royal Enfield's growth rate
offers the opportunity to split the sector into a separate entity. Harley
Davidson and Triumph have a unique identity, and a person like
Polaris has a balancing product line (ATV), RE does not actually
have a business with Eicher.

 It does not make economic sense to club a very fast growing lifestyle
industry with a cyclical business like trucks like Royal Enfield. It is
also good for investors considering that the lifestyle business attracts
a better P / E ratio in the stock market than a diversify group business.

62
  Modern History of the Royal Enfield Bullet

 The RE Bullet, in its current form, was initially introduced in Britain

as a 350cc bike in 1949. It has an innovative design element: the
swing arm suspension. This feature with a very strong single cylinder
engine allowed it to become a trial motorbike. The 500cc model was
introduced in Britain in the 1950s, winning hundreds of races. This
made the bullet internationally recognized and began shipping orders
to the factory in Redditch, United Kingdom, worldwide.

 In 1954, the Indian government ordered 800 bullets for "immediate

service" on the Pakistan border. The order put an incredible burden on
the factory, but it did. The bullet proved to be very successful in
India, and the government ordered 1955 and 1956 in a similar size.
Home factory has decided to set up a factory in India.

 An Indian partner was found in 1955 and the trainees were sent to
Redditch to learn training methods. First, the Dastak units were sent
to Madras, where they assembled. By year 1956 a complete factory
was established in India and Enfield India, Ltd. Enfield began
producing bullet fully. In India, he manufactured a machine for
training the 1955 bullet maker. He built the same bike in 1955, 1966,
1976, 1986 and 2006! The demand for this great old motorcycle never
stopped. Each year they produce 30,000 motorcycles, totaling 1955
bullets

63
  Production

This bullet was made in 1955. Although metallurgy has improved

over the years, advanced machining techniques and the passage of
time have led to the creation of stronger & more durable parts that
make the bullet better. Some ways are the same bike.

 THE SIGNIFICANCE

No need to introduce the famous title 'Royal Enfield'. This legendary

machine, synonymous with adventure or experience that thunderstorms,
royal rides and other bikes cannot offer, has proven itself to be in a
difficult position over time, and in its 55th position, he continues to
replace it years later. Contact! For Enfield bike owners, it’s more than
just a means of transportation - instead it’s a lifelong romance.

Royal Enfield is considered the oldest motorcycle in the world and is

still in production. Originally a brand of British engineering company,
Enfield Bicycle Company, it also manufactures motorcycles, fixed
engines, bicycles and rifle parts! The first vehicle under the 'Royal
Enfield' brand was built in 1898 and was designed as a quadric-cycle.
The machine had a strong military connection, and was widely used to
carry machine guns in World War I and to transport war equipment in
World War II.

In 1955, Chennai-based Enfield of India acquired a license to assemble a

motorcycle in the country with parts imported from Britain, and by 1962
began full-house manufacturing of the machine, which continues today.

64
India's Vintage Royal Enfield outperforms Harley-Davidson
in motorcycle sales

 Harley-Davidson HOG + 0.00% The most popular motorcycle in the

world, but the brand lost to the world-famous Indian name Royal
Enfield last year. Royal Enfield manufacturers want to dominate the
mid-size motorcycle segment worldwide.

 Commercial Royal Enfield, owned by Indian bus and commercial

vehicle manufacturer Eicher Motors, is the world's oldest motorcycle
brand. Launched in England in 1901, its production ceased in the
1970s, but is now adopted in developing India.

 Royal Enfield sold 300,000 units in 2014 to 267,999 Harley-

Davidson. To be sure, American motorcycles are expensive (cheaper
than twice the cost of top-end Royal Enfield) and other motorcycles
are sold in a surprising number of populated India. But again, as in
2013, Harley-Davidson dominated the sales of 100,000 motorcycles
over Royal Enfield.

 Royal Enfield reported a record revenue of 2 482 million in 2014, and

the company said it plans to make 450,000 motorcycles this year.

The company has announced a $ 80 million investment in two other

factories, as well as technology hubs, and wants the mid-size Royal
Enfield "Bullet" brand, which combines its retro good looks and

65
distinctive engine roar gross. Customers who want to buy Royal Enfield
now have a waiting period of about 12 months.

Increasing With the increasing wealth, motorcycles are widely regarded

as leisure and adventure activities in India, where the road network has
undergone tremendous improvements over the past decade. Harley-
Davidson entered India in 2008 and aggressively sold its low-end
motorcycles.

India Royal Enfield, which manufactures all its motorcycles in India

where costs are low, has a growing fan base and customer base abroad.
In January this year, US President Barack Obama expressed his
admiration for the bike riders used during the Republic Day parade in
India.

Royal Enfield promotes its motorcycles as adventure rides, and the

company sponsors mountain rides and endurance rides. It has recently
trademarked the name “Himalayan”.

66
 ENFIELD RIDERS

 Our Mission

 Our goal is to build and maintain Royal Enfield and its

variants for our customers looking for a hassle free rental for
road trips.
Value is our core value

 And we are a group of adventure travelers and we

understand the joys of bike travel. Through Royal Enfields,
we believe in providing the best service to our customers
seeking destinations in India.
Services our products and services

 We provide services for motorcycle enthusiasts, adventure

holiday travelers and destination seekers to travel by road
and explore places. Along with you on your journey, we
rent a variety of Royal Enfield.

 Ejection is our skill

We offer showroom conditions Royal Enfield is available for rent

to customers for short trips, weekend getaways or long road trips.
We also plan customized journeys to meet your specific needs.
For those who want to explore and explore our services. Our
clients are people who challenge themselves - people who want
work, travel experiences that they could not do in the past, who
are out of the ordinary, who want to explore and experience

67
 experiences and places. A sporty, adventurous explorer who
constantly faces challenges, our kind of traveler - who connects
with us and our brand.

Royal Enfield is more than a comparison. There is no one like them. We

offer all sorts of things to give you the best taste available. We apologize
for the confusion you are facing. Choosing one of the eight amazing
variants is not easy.

68
  TRIPS

1.PRO BIKER

For those who make their own. The destination is unknown to this
traveler. Go to where the road takes you. Decide your campaign
yourself. Uninterrupted Travel - We are there only when you need us.

69
  All our tours

 DOMESTIC TOURS

 We understand your needs and design trips to suit your

convenience. We wish we could list everyone, but to give you a
taste of what we offer - below are some travel details.

 Ladakh Expedition (Passionate quick riders) 8N / 9d

 Ladakh Expedition (Veteran Rider) 12N / 13D

 Ladakh Expedition (Professional Riders) 14N / 15D

 Cultural Rajasthan 9N / 10D

• Fun-filled Goa 5N / 6D

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  INTERNATIONAL TOURS

We are very proud to be recognized and affiliated with foreign

government tourism boards who have expressed confidence in our
capabilities and services. I, along with a few others, want to organize
international motorcycle tours in our country with the support and
assistance of the Tourism Authority of Thailand (TAT). To give a
glimpse of the lies on foreign roads, some journeys.

71
 2.EXPLORER

This is for early birds. Travel in the dawn on peaceful and vacant roads.
At 60 km / h you will be exterior from the city limits. You can decide
from a basket of recommended destinations within a range of 150-200
km from the busy city life.

72
  WEEKENDER

 Pack your luggage and put them in the saddlebag we offer for your
trip. You do not want to be laden by your shoulders when taking
the highway, travelling 200–250 km from the city center. If you
have previously taken your last trip from Dawn Breaker; You
know how exciting the different options of target are in this
category.

 OVERNIGHTER

1. So you have chosen the dates for a extensive weekend vacation.

You don’t want to go to the same old places with thousands of
other travelers. Choose from this group to find a less discovered
road. The 300-350 km ride tests your visual acuity.

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  Explorer trips include the following

 Maps & directions to destinations.

 Recommendations, places to visit, etc.
 Rider helmet.

CEO of Royal Enfield has a different impact on

life, CEO SiddharthLal said

 In financial year 2014, Royal Enfield's parent company made 80 per

cent of Eicher Motors' bottom line.Eicher Motors' share prices rose
from Rs 224 in 2006 to Rs 15,059.65 in2007. Royal Enfield also
excluded Harley Davidson in 2014, although it must be said that the
two brands fall into very different categories. ETPanache meets Lal in
Delhi for a special Tate-A-Tate.

 Field Royal Enfield was 15 years in power. How's the ride?

The world is so different to us now. But then some things stay the same.
We continue to see the market as an outsider because they have nothing
to lose. Once you get into security mode, you'll feel like 'we've created
something and we're focused on managing it now', at which point you
lose your place.

74
 When you took over, Royal Enfield was written. The first thing you
want to do with the brand?

I am in my mid twenties. I am innocent and I don't think I have been

thinking long enough. 'How hard is it to sell some more motorcycles?'
We sell 1,600 or 1,810 bikes per month, and if we can sell 550 more
every month, we almost certainly won't lose money. It's as simple as
that. I have found that there are many more problems.

For Royal Enfield's major customers, it was clear that the brand still had
some excellent features. I was a rider back then and I also understood
the brand from a consumer perspective. It has a lot of equity. We
couldn't translate it into good business.

 Key what are the key drivers for your success?

You need to get up to speed with the business and reach for a long time.
The deadline is not a quarter or year. This is where we will go in the
next few decades.

 Do you agree that greed is always necessary to achieve it?

Greed is a harsh word. Five or six years ago, if you asked me about our
ambitions, I would not say where we are today. It was three shades
shorter. We are able to create what we have, because we are.

75
  Are you setting your goals lower than what you want to achieve?

Not at all. What we want to achieve is huge. We want to build a leisure

motorcycle market in India. And we wanted to be the leader in the
department. Now, our ambition is huge. We want to be the leader and
also grow the middleweight motorcycle segment worldwide.

 When the numbers put Royal Enfield on Harley Davidson, how did
you react?

At one point, it was a major milestone. But that's just another day.
Everyone has their own trajectories. This is an opportunity we are doing
well in India. There is no struggle every day. With that engine and it
generates a lot of cash for us, we have now moved into a new scheme
and become a global player.

 Are you polite or still earn a lot?

There is no request. If you look at the numbers, we are also in India and
still have a 3 percent market share. The visibility may be high but we are
still young. Globally, in the world of motorcycling, we still have a bright
spot, one that glows but is still a scar.

76
  How do you respond to competition or is it important to you?

In fact, this is important to me. The conventional way of responding to

competition is to say, rivalry does things A, B, C and, therefore, let's do
A1, B1, C1.

Our way of answering the rivalry is to first recognize what they’re doing
and then go 180 degrees. Our brand name is built very differently.
In our opinion, there are a large number of consumers looking for Indo-
Japanese motorcycles in India. Then they look at us. And we are very
different. Some of it is our history but most of it is our design.
The type of consumers we want to attract can have a diverse impact on
life. He doesn't need an support from a movie star or cricket star. We
don't need that crutch.

 However, when Harley says Royal Enfield is not a competition, or

when another player, doesn't it impress you?

In the larger scheme of things, all of this is positive. They are trying to
get us into the conversation, but that doesn't make sense because we are
going on our own path.

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  Side Business aside, what keeps you busy?

I'm a family man. I like reading, go to the beach. I do mountain climbing

in the mountains, but I am very active all the time.

 Apparently, you went to the office while you were in Delhi. Are you
still doing this in Gurgaon?

No I am not from Gurgaon to Gurgaon. I don't ride on a motorcycle

anymore, but I can ride at any time.

Royal Enfield Turn Around Strategy

Executive Summary: Senior managers of Eicher faced a difficult choice.
He was given one last possibility to damage the Royal Enfield - his
motorbike department. This is why they wanted to modernize the bikes
to attract a wider customer base. But existing customers want their
bullets as they always did. By modernizing, Royal Enfield is in danger
of trailing traditional fans without gaining new patrons. The case study
shows how to meet this challenge.

The year 2000 was critical. When the board of directors of Eicher
Motors determined to close down or sell Royal Enfield - the company's
Madras based motorcycle division, it made the iconic bullet motorbike.
Bike sales fell to 2,500 units per month, as opposed to the plant's
installed capability of 7000; The deficit has been growing for years.
Even though the bike’s supporters were killed, there were numerous
complaints about them - engine seizures, braking of accelerator or clutch

78
cables, power failure and oil leaks. The gear lever is uncomfortable and
with a hard kick-start many people find them too heavy and difficult to
handle.

Only One man stood on the board, insisting that Royal Enfield had
another chance. He is a 3rd generation member of Delhi Lal family,
Sidharth Lal, promoter of Eicher Group of Companies. S.Lal, then 26, is
a rare bullet fan: he rode the scarlet bullet, taking the baraat (barat) to his
wedding location instead of the traditional horse. "The board agreed to
give me a chance," Lal said. "It's not because of my faith, but because
the business is doing so badly it’s getting worse."
Lal hopes Royal Enfield can still be saved. This bike has its own
reputation, cult following, instantly recognizable build and aspirational
value. Changes have to be made over time and to make the bike more
acceptable and overcome this problem. Royal Enfield fans have always
loved the bike. RL Ravichandran says, "We needed changes to attract
new customers, but were reduced to existing CEOs in 2005.
Ravichandran has previously worked at both TVS Motor and Bajaj Auto
Vas." We are in a bizarre condition,”he says.

Transformation needs to be calibrated. Myths about future customers

have to be addressed, and any uncertainties about bullets and
Thunderbirds launched in 2002 have been eliminated. At the same time,
Lal and Ravichandran have made it obvious that they do not want to
compromise the personality of the Royal Enfield bike. Ravichandran
says, "We did not intend to go on the commuter route, but let's look at it
as leisure."
Retaining the rigid look of the build, including the build, headlamp and
petrol tank design. Should the gear be placed near the rider's left leg -
similar to most bikes - or to the right? The question has given Lal and
79
 his team sleepless nights, as long-standing customers have died to
protest the change. The engine is an additional frustrating question. The
remains of an old cast iron engine. Its varied gearbox and oil pump
design has made it vulnerable to oil leaks and has been recovered several
times. Its ability to comply with increasingly stringent emission
standards is also suspected. A modern aluminum engine eliminates these
problems, but it lacks the vibrations and beat of an older engine -
something Royal Enfield customers love. Physical rules make it
impossible to copy them with a new engine.

Gradually, the tide changed. Royal Enfield products have almost

disappeared due to engine problems and oil leaks. By 2008, dealers were
reporting less workload.

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 There are many global examples where auto companies make huge
changes in their production engines. However, Lal and his team changed
gear and built a fresh engine. "We have retained many features of the old
engine - long stroke, single cylinder, high efficiency with push rod
mechanism." Unlike the old engine, the new engine features hydraulic
tape, new engine fittings, new metal and less moving parts. Clearly, it
does not produce vibrato and vintage beats, but has been advised by
international experts and mapped over 1,200 hours of sound to make
sure maximum rhythmic vibrations and beats. This is 70% of the spread
source.

The new engine has 30 percent fewer parts and produces 30 percent
more power than the old one, with improved fuel efficiency. By 2010,
all Royal Enfield models had begun to use the new engine. Two other
issues are worth noting: Royal Enfield mptorbikes' parts quality and
sales practice. To deal with earlier, shop floor procedures have been
addressed, and suppliers are advised to improve quality. Royal Enfield
has conducted extensive internal exercises to improve performance.
Ravichandran says, "We have announced 2006 as a year of return to
basics." "We have established a field quality Rapid Action Force to
bridge the gap between customer expectations and reality."
Gradually, the tide changed. Royal Enfield products have almost
disappeared due to engine problems and oil leakage. As of 2008, dealers
are reporting less workload. Warranty claims have also fallen well.
Electric starter dependent sprag clutch malfunction, for example,
decreased from five percent in 2006/07 to 0.2 percent in 2011/12. Royal
Enfield began organizing exhibition area rides to promote relaxed
biking. "Such actions have eliminated fears about the reliability of our
products, which some customers may have," said Venky Padmanabhan,
who later took over as CEO of Ravichandran and was promoted to the
board of Eicher Motors.

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 To perk up the sales experience, company- wned showrooms were
opened and

Dealerships expand.

In October 2009, the Royal Enfield 1950s model bullet - a 500cc classic
model designed in Germany and its reissue - was inspired by the J2. It
has been successful, praising its performance and fuel economy.
Originally launched by Lal in India in November 2009 as a 350cc bike,
it is priced at Rs. It also proved to be a hit. "Right now, our capacity
utilization is 100 percent. There is a six-month waiting period for
delivery," says Venky. We are planning to build 1.6 lakh bikes soon.
Today, Royal Enfield's problems are of a different kind. How to increase
brand equity without diluting it? It faces challenges from well-known
global brands such as Harley-Davidson that have entered the Indian
market. With other options available, will its customers sit outside for
six months to deliver the delivery?

Driving changes are easy when the chips are down,there is no other
alternative. In the case of Royal Enfield the transformation worked
wonders for it. But what if SiddharthLal and his side are good?

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 Davidson's role for Royal Enfield coming soon

Most communities around the world know Harley Davidson, and Old
World people may know about Royal Enfield Motors but solemn bikers
around the globe are certainly aware of both.

 Harley is a cult in the United States and many parts of the globe. In
the end, he was responsible for keeping them alive, as well as
fostering the American heavyweight motorbike society. He has
shaped a vibe in the marketing society and has produced numerous
case studies of his triumphant strategies aligned with new and modern
Japanese bikes. Their development into other international markets
has been very successful. But India is a different story. He has never
faced a competitor like R.E. Similar to HD, yet very different.

 For beginners, RE traditions is older than Harley.Two handcrafted

retro heavy-duty motorcycles, both operating in World War 1 and
World War 2 (RE for the British Empire, HD for the United States).
But both have their signature looks, sound and feel. The brand was
opened in 1955 after the original RE business closed in the UK and
was acquired by an Indian subsidiary. Though it is not from India, it
is woven into the fabric of Indian motorcycle culture. Simply put, for
HD India, for RE India.

 HD entered India with Media Blitz in 2010 and has been in use ever
since. High import tariffs have left a good number of serious bikers
useless until they become millionaires. You can at present get 5-6
zones for the value of a Harley Davidson. For this reason the dealer
network has not increased significantly, and by 2011 they were very
large, where they were located in only 4 main cities and had a limited
83
 prosperous urban customer base. On the other hand, RE has an
widespread bike is buyer base across India. In addition, Harley,
proud of the quality of the construction, slipped on long drives on
Pot-Hole Raiden roads in India. Equally well built enfields have also
fallen, but they are not too expensive to begin with and can often be
fixed by any mechanic anywhere in India. Parts are readily accessible.
Harley also goes a long way in that segment.

 But the major difficulty for Harley is that they teach RE before they
compete with them. In addition to learning from their own mistake,
RE also has the added benefit of knowledge from HD mistakes along
with successful marketing and branding strategies from the 1980s.He
has successfully embraced and included many of HD's strategies for
building his own community, customer loyalty and emotional
engagement. And they were so triumphant that, despite some
performance-related issues, the current Enfield fan was also a
publicist who made contact with his motorcycle and swore on it.
Conversion of religion is almost impossible. Reminds me of my
Harley counterpart in the United States! The lack of straight
competition for RE in India for all these years has also been enough
for them to build their brand and deepen their current cult status,
which has allowed them to reinvent themselves.

 Trips HD may have guided many biker community building

strategies, trips, clubs in the United States, which help them to build a
unique identity and build customer loyalty. RE is the first shipper in
India, and is already emotionally connected to the larger size of the
entire target customer base; getting more followers with new and
smaller Indian HD can be a difficult task and it is still difficult to
replace existing Enfields. Triumphant RE advertising campaigns such
84
 as 'Success the Trip' and 'Leave Home' have made things worse for
Harley Davidson.

 But in addition to trying to build its biker community, HD is also

associated with the rising Indian rock movement, in line with its
sturdy home affiliation with rock culture and worldwide branding
strategy. This may help them achieve some of the subsequent cities,
but this is not something that will ever impact RE in any country
where the rock prospect is at an early stage.

 HD can help make national parks and roads here, which is a great
idea, but regrettably there are not many buyers in a developing nation
like India, where resources are standard redemption and no one is
blowing the eyelid. This enhances the CSR image of HD, but it does
not affect the love of bikers.
 The price tag and their existing MOOG-Millionaire Harley Owners
Group are no big help, creating wealth-based exclusivity in the minds
of the general public, attracting the general public and building
communities: spoiling the richest residents'. It differs from the Harley
in the USA in its specificity in style and approach. On the other hand,
the image of RE can be put into the bus: if the Marlborough man is a
motorbike, it is a Royal Enfield. It is very commanding.

 And now they are taking their success abroad. It is true that Harley
davidson has a strong market share internationally, but Enfield is a
particular religion with its virtuous supporters.

85
 The Marketing Strategy and Intriguing reason
behinds its success.

Product Strategy of Royal Enfield

Royal Enfield's production strategy

In India, after collaborating with Madras Motors, it began manufacturing

motorbikes for Army men. Later, over time, motorcycles occupied the
entire market. Rugutaraj Singh, the current president of Enfield of India,
said, "Consumers have to work hard to know whether to park the bike in
the drawing room or ride it."

Because of the aesthetic appeal, the manufacturer focuses on making the

design as attractive as possible. The company is also known for its other
advantages in the manufacture of law, bicycle and rifle and stationary
engines. The portfolio includes Bullet 350, McCismo 500 and Electra
5S, Classic-500, Bottle Green, Chrome, Squadron Blue and others.

Placing Strategy of Royal Enfield

Royal Enfield is located in India and many countries around the world,
the UK, Australia, Japan, Canada, Russia, the Holland and many others.
Initially, the spare parts and parts of the Bullet Model 350cc were
imported from the United Kingdom, but by 1962, India had started
producing parts at a Chennai-based plant.

By 2013, a factory at Thiruvottiyur had become the second largest

manufacturing plant in India. Its availability in many countries has
86
 increased its dealer shares. There are 394 outlets in India in each state,
including three union territories.

Royal Enfield is an Indian business headquartered in Chennai, Tamil

Nadu. It has expanded its product presence in more than fifty countries
such as India, as well as Spain, Switzerland, Netherlands,
Russia,Holland, Malaysia, North Korea, Canada, Brazil, France,
Germany, Italy, the Great Britain and Japan. Argentina offered,
Australia and the US. Initially the business imported kits for 350 cc
bikes from the United Kingdom and assemble them at the Chennai plant.
A new manufacturing plant was opened in Chennai in the year 2013 and
its factory in Thiruvottiyur became a inferior manufacturing plant, which
continues to manufacture many models and engines.

In 2015, the company recognized a dealership and its headquarters for

the North American in Milwaukee, Wisconsin. It launched its retail
operation in Indonesia in August 2015. Royal Enfield has a sturdy
distribution network that includes the services of dealers and stockists,
making it easier to reach consumer markets. Its channel in India has 394
dealership outlets in every Indian state and 3 union territories.

87
 Pricing Strategy Of Royal Enfield

Royal Enfield is unique among peers because of its centuries-old

heritage. It is one of the oldest two-wheeler brands in the motorcycle
industry. This is not just about getting into the luxury section of society
but also the status of motorcycle lovers.

The company is aimed at young and middle-aged people who are aware
of the need to buy high-quality products at an affordable price. The

88
 manufacturer offers high quality, stylish and powerful products that no
one hesitates to buy despite the asking price.

The Promotional Strategy of Royal Enfield

The company has come up with various advertising campaigns that are
widely launched and shared across various ad networks, such as social
media channels, TV ads and print media.

It has resorted to volunteering between several shows and events to

enhance its brand awareness. Royal Enfield has won many awards and is
also known as the Best Bike by former President Barrack Obama.

Royal Enfield is the first two-wheeler manufacturer to be WVTA

certified in accordance with the regulations and standards established by
the European society. It has adopted a number of promotional strategies
to successfully promote its products in the consumer market. The
company launched an innovative advertising campaign with the help of
electronic and print media. Its advertising can be found through
television, magazines, newspapers and hoardings. Royal Enfield has
launched a brand awareness campaign on social media sites such as
Facebook

Twitter and YouTube. Participates in many shows to amplify its brand

visibility.

It discovered its custom bike at the Wheels & Waves Custom Bike Show
in Biarritz, France. Royal Enfield has received many accolades and
awards for recognizing her contributions. It won the Business Standard
Best Company of the Year 2015 and was also seen as the best bike by
former President Barack Obama. It's like a famous tagline pistol that
moves like a bullet

89
90
NSG Commandos running Royal Enfield Stealth

91
 On September 7, 2017, 15 Elite Black-Cat Commandos (NSG
Commandos) embarked on an 8,000-kilometer expedition on the Royal
Enfield Stealth Black Classic 500 motorcycles. The campaign aims to
raise awareness of terrorism among Indian citizens.

There is also a road trip to celebrate the NSG's 33 years of service in

combating terrorism and services in the country. Now, Royal Enfield has
announced the sale of its limited edition stealth block by NSG
Commandos and called it 'Tribute to the Brave hearts'.

The sale is on a first come first serve basis due to the limited number of
special edition motorcycles. The price of the bikes including Goods and
Service Tax (GST) along with registration, insurance and number plate
details has been fixed at Rs 1,90,000.

Motorcycles will go on sale online starting December 13, 2017. Anyone

can register and express their interest by December 8, 2017. The
proceeds from the sale will go to the profitable initiative of NSG for the
private sector. Handicapped children.

Each of these bikes is serviced by Royal Enfield and is backed by an

official factory warranty. The bike features a wooden metal plate that
commemorates the spirit of black cats and their 8000km journey. Stealth
Black 500 is the latest motorcycle Royal Enfield for the Indian market.
The bike has a 500cc, four-stroke engine production unit. The air-
cooled, long-stroke engine produces 27.2 Bhp-41.3 Nm and is known for
its huge torque at low ppm.

92
 The engine is inserted into the fuel and uses hydraulic tapes. It is paired
with a 5-speed manual gearbox. There are disc brakes on both wheels of
the bike. The entire motorcycle is finished in matte-black color, giving it
a very unique look in the Royal Enfield's classic range. The regular, on-
road price of the classic 500 stealth block is around Rs. 2.05 lakhs. The
Stealth Black 500 tops the Royal Enfield Classic retro style motorcycles
sold in the Indian market.

Royal Enfield President Rudrathej Singh joined the world's oldest

motorcycle company three years ago. After 18 long years at Unilever, he
had clear and often contradictory views on the New Age marketing
playbook. Some of it may be counter-intuitive. For example, confidently
launching a limited edition Pegasus motorcycle: "We're building a
thousand story vehicles with the classic 500 Pegasus." And most
transactional firms on the other hand. "Brand Equity Joins Him in
Limited Edition Innovations.

93
 A limited edition of a brand filled with history

With Pegasus, we are building a thousand story-telling vehicles. Pegasus

was inspired by the legendary Flying Pisa motorcycle built at the Royal
Enfield facility in Britain during World War I. A tribute to Royal
Enfield's military legacy, the Pegasus Regiment Para-Troopers fell into
the air during a recent UK launch. The idea of bringing the story to the
cutting edge of the world and talking about the time and the spirit that
the brand is at the heart of doing something basic, and reinforcing its v
image today.

Engineering work or part of history?

Royal Enfield (RE) is an established brand in India, but it's early days in
the other 50 markets we have. We can even have a shirt or a bike there.
In addition, it is important to bring out the characteristics of the RE
brand - pedigree, flexibility, rudeness - which are still relevant to us.
They are not known in India or anywhere in the world. Of course, we
sell bikes, but we feel that people who buy them buy a piece of history
and really believe that. They have to work hard to find out if they should
keep them in the drawing room or ride them.

94
 Bikes can tell stories
The marketing plan is our motorcycle. They create layers of their own
stories. There are 2.5 million people who follow us on our website and
the launch event is broadcast for our entire community. We try to make
it look more provocative stories from the bike owner than the company.

Royal Enfield Playbook

The industry believes in product-based development. When we
innovated, we said it would be around the brand. We don't need to get on
the pedigree treadmill of product innovations. In a world of planned
obsolescence, Royal Enfield is trying to establish intentional longevity.
So, whether it's the 1968 model, the 1968 story, or the 1945 story, we
prove that the motorcycle and that story are still relevant. I don't want
next year's customers to think that what we buy from us is better than
that. Mobile companies do this every six months, and automotive
companies do it every four or five years.

Marketers Mann ki Baat

Changes in marketing and agency structures took place over a decade

and a half from a consumer perspective. There is resistance to change
from the client. It is easy to gather people and they will feel the same
way. The system collapsed when the return on marketing investment
turned out to be significantly negative, and at the same time with the
macro factors of the business, it was a clear response from the customer
- "I don't have any money and I don't see anything coming back to me."

95
 THE NEW ERA

The automotive industry today is made up of highly involved consumer

and high transaction companies. We’re trying to get away from that
narrative. As I said three years ago, instead of becoming the best CRM
company in the world, we have become the best marketing company in
the world. And I come from a company that - at the time - was the best
marketing company in the world with the stated goal. Because I come
from an 18-year background trying to be the best seller in the world, we
want to be the best CRM company in Royal Enfield. Mainly because of
the futility of everything I've seen for 18 years. I think, going forward,
the concept of CRM, which is currently level-9 in order of importance,
will be level-1. CRM is currently low-leveraged and irrelevant and
transactional. All that will change.

Royal Enfield's domestic sales were down 10% to 58,292 units from
65,026 units in November 2019.

Royal Enfield, like other two-wheeler manufacturers in the domestic

market, is facing tough times as the Indian automotive industry is
experiencing a huge sales slowdown. The Chennai-based brand's best-
selling Classic 350 has performed well, declining only 8 per cent year-
on-year.
The company had sold 35,951 units in November 2019, compared to
39,025 units in the same month last year. On the other hand, the Bullet
350 Twin Spark worked positively, as sales increased 5 percent. Royal
Enfield sold 12,902 units of the motorcycle last month at 12,326 units.

96
The third behind the Bullet 350 Twin Spark is the Bullet Electro Twin
Spark. It reported domestic sales of 3,641 units in November 2019, up
from 57,317 units in the same month of 2010, YYY. Thunderbird 350
posted a total of 3,588 units with a 56 percent volume drop.

97
 Royal Enfield November November
Model (+/-%) 2018 2019

1. Classic 350 (-8%) 35,951 39,025

2. Bullet 350 Twin

12,902 12,326
Spark (5%)

3. Bullet Electra
3,641 2,317
Twin Spark (57%)

4. Thunderbird 350
3,588 8,109
(-56%)

5. 650 Twin (216%) 1,027 325

6. Himalayan (4%) 793 763

7. Classic 500 (-
280 1,696
83%)

8. Thunderbird 500
86 357
(-76%)

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 Most motorcycles in the domestic range Royal Enfield have declined,
but the combined numbers of the Interceptor 650 and the Continental
GT650 are not impressive. Last month, Flagship 650 twins registered
1,027 units, up 325 units and 216 units in November 2018.

The Himalayan's popularity has risen in recent years as the adventure

motorcycle segment is really gaining attention. Royal Enfield's response
to space is one of the most accessible models and it recorded a 4%
increase in sales last month, as 793 units were retained compared to 763
units.

Due to stringent BSVI emission standards, the 500cc Classic, Bullet and
Thunderbird will not see light until the end of March 2019 and their
sales have been negative for several months. The Classic 500 registered
280 units last month, down 83 percent from 1,696 units in November
2018.
Bullet 500 volume fell to just 24 units in November, with 78 percent
lower sales. The next-generation Classic, Bullet and Thunderbird series
are in the works, and they will be launched by the end of next year. The
BSVI compliance model is expected to be introduced in the coming
weeks.

RE lost 20.3% of sales in the first 8 months of 2019 after achieving 6

consecutive all-time records. Sales in all regions are growing rapidly,
but in India, global performance has slowed. Sales in Europe are
increasing in all country and the UK has turned out to be a second
market worldwide.
Royal Enfield India has been selling at record highs for years, expanding
its international distribution, image and customer base, making it truly

99
one of the oldest lineups in the world. They boast the potential to create
value for the rest of the “old” world in a youth driven world.
His recent years sales score has been impressive, with the Indian market
booming, where Royal Enfield is the leading provider of mid-engine
sized motorbikes, reaching a record high of 469.741 sales in 2012. Sixth
in a row - 846,000 in 2019.

The growth of the Indian marketplace has been a main concern for many
years and the brand has lately focused on the rest of the world, aiming to
create a more international brand and differentiate risk, in fact driven by
conjugal market trends.
In fact 2019 confirms the fear of much connection between the
performance of the company and the domestic market. Year later,
despite the tremendous growth of international trade, India has been
slowing down significantly in the two-wheeler domestic market, beating
Royal Enfield's performance.
In the first 8 months of the year, sales in India declined by 21.8% and
representing 94% of total sales in this market, global brand performance
decreased by 20.2% with sales of 533,000 units.
In other markets, all regions are still positive: 14.6% in + 15.8% in
North America (US, Canada and Mexico) and + 77% in Europe in the
United Kingdom. Sales growth in (+ 124%) is, in fact, the second best
market in the world, and in all markets, Germany (+ 69%), France (+
83%), Italy (+ 26%), Spain (+60).
Despite an nearly negative market trend, Royal Enfield India is growing
rapidly with South America, with Argentina + 173% and Colombia +
44%.

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 Inheritance
RE is actually a business which is 100% controlled by Indian
conglomerate. Located in Madras (India), it is actually the largest
motorcycle company in the world. The tale of this company dates back
to the early 20th century, when motorcycle production began in 1901.

 In 1949,Sundaram Iyer introduced Madras Motors to import

British motorcycle into India. In addition to Norton and the
incomparable machinery, she sells to Royal Enfield.

 In 1953, Madras Motors received an order from the Indian Army

for 850 350cc bullets. The motorcycle came from Redditch in
early 1953 and was a big hit, making it enduring and easy to
maintain. Johnny Britten won the esteemed Scottish Six Days
Trial on his 350cc bullet "HNP 331".

 In 1954, Redditch formed 'Enfield India' in association with

Madras Motors in India. Work on the structure of a purpose-
built factory at Thiruvottiyur near Madras has begun.

 The Thiruvottiyur plant opened in 1956 and will begin

manufacturing bullets under license. Initial production is based
on kit coming from UK in the form of kit, which is then
assembled in Madras. A total of 164 bullets will be produced by
the end of this year.

 In 1965, the Continental GT Cafe Racer was highly acclaimed,

with a team of photojournalists traveling the Silverstone circuit
from John to O'Groats to Land's End in 7 laps. The GT includes
a racing petrol tank, clip-on handlebar, rear set, hump race seat,
rev counter and sweep-back exhaust.

101
 Production of motorcycles stopped in the 1970s and the original
Redditch, Worcestershire company was disbanded in 1972.

Due to controversy over the legality of using the "Royal"


nameplate, Enfield of India continues to produce 'Bullet' as
'Enfield Bullets'. Finally, in 1999, Enfield of India was decided
in favor of the use of 'Royal' by trademark owner David Holder,
and the "Royal Enfield" brand was re-marketed with Bullet 350
and newer ones. Many models have been planned and produced
in India, including cafe racers, cruisers, retro and adventure
tourers.

 In 1978, Royal Enfield returned home. This time the Indian

company began export of 350cc bullets to UK and Europe. As
the bike develops in classic British motorcycle tasters, sales rise
rapidly.

 In 1995, the Eicher Group was acquired by Enfield India

Limited. The corporation was renamed Royal Enfield Motors
Limited.

 In 2013, Royal Enfield began industrialized at its second facility

in Oragadam, Tamil Nadu. With amplified efficiency, the state
of the art factory will be central to the company's global
ambition for the future.

 In 2014, Royal Enfield India introduced a new retail experience

with the opening of the first of its kind specialty gear store at
Khan Market in New Delhi.

102
  In 2015, Royal Enfield established its first direct allotment
subsidiary in North America. Royal Enfield's North American
head office is in Milwaukee, Wisconsin. In fact they sell over
2.500 units a year.

 In 2016, the RE Himalayan made its debut. With the new LS

410 engine and a terrain-tested suspension, it promises lifelong
travel on all roads.

In 2017, Royal Enfield operates its entirely operational


technology hub in Brunthorpe Proving Ground, Leicester, UK.
And will start production from its 3rd manufacturing facility in
Vallam, near Chennai.

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 The Distribution

In India, Royal Enfield has established 13 branded stores, 255 retailers

in all major cities and towns and a vast network of over 300 authorized
service centers.
The company exports motorcycle to countries such as Argentina,
Australia, Belgium, Canada, Brazil, France, Germany, Singapore, Italy,
Mexico, Spain, Thailand, The United States, Vancouver, Japan, The
United Arab Emirates, South Korea and more.

104
THE MARKET SURVEY

105
106
INTERPRETATION-

Out of the total respondents 73.2% turned out to be male and 26.8% were
female.

107
INTERPRETATION-
Out of the total respondents 48.8% were between the age group of 15-25
years,
22% were between the age group of 25-35 years,
7.3% fell in the age group of 35-45 years,
14.6% belonged to the category of age ranging between 45-55 years
& 7.3% belonged to the age group of 55-65 years.

108
INTERPRETATION-

The brand awareness of Royal Enfield Motors amounted to a healthy 97.6%

amongst the total respondents, while 2.4% of the respondents were unaware
of the motorcycle brand. Royal Enfield has emerged to be one of the most
popular two wheeler brands in the country from over a decade.

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INTERPRETATION-

Out of the total respondents 51.3% have driven a Royal Enfield and have a
rider’s perspective,while 48.7 % have shared their opinions as a pillion rider.

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INTERPRETATION-
Out of the total respondents option A (Riding Comfort) has been selected upto
61%,being the highest.
Option B (Lond distance durability) has 34.1% of response share.
Option C(Look of the bike) has been selected as the 3rd hightest ranked
feature.
Option D(Seating & posture) ranks 4th with 39%.
Option E(The Legacy of RE) turned out to be the 2nd highest striking feature
among the respondents.

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INTERPRETATION-
The Classic 350 & 500 CC units has been chosen as the most sought after
Royal Enfield model being selected by 61% of the total respondents.
The iconic Bullet ranks up to be the 2nd most preferred Royal Enfield model
at 34.1%.
The Himalayan has attracted the attention of 12.2% of the respondents and is
ranked at 4rd position.
The Thunderbird tops the Himalayan at the 3rd position with 22% share of
votes.
The café racer Continental 650 attracts a relatively lower audience at 4.9%
owing to high its price range.
The latest entrant,The Interceptor 650 has been selected by 7.3% of the bike
enthusiasts & it would need a considerable amount of time & effort to
consolidate its position in the market.

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INTERPRETATION-
Out of the five options the pricing and specifications of the motorcycle were
ranked amongst the top two things from the buying perspective at 51.2% and
39% respectively.Additional added features,the waiting period and word of
mouth from peers were ranked subsequently at 31.7%,24.4% & 22%
respectively.

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INTERPRETATION-

The features of the Anti-lock breaking system & fog lamps were amongst the
widely chosen options which the buyer would opt for at an extra price
indicating the safety aspect being the top priority. They were selected at
47.5% and 45% respectively.
The option of disc brakes and wider seats also had a fair share at 35% and
30% respectively, while the additional duffel bags and medications in the
handle bar were at the lowest with 7.5% and 20% share.

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INTERPRETATION-
Out of the total respondents,70.7% were off the opinion that they would opt
for a Royal Enfield motorcycle over other competitors such as KTM,TVS and
Honda; indicating the reliability and dominance of Royal Enfield in the
Indian two wheeler market.

115
INTERPRETATION-
Out of the total respondents, 53.7% were aware of the new launches of two
Royal Enfield motorcycles, while 46.3% were not, which is relatively higher
percentage and indicates that Royal Enfield has to put in the hard yards to
create awareness in the market about any new launches henceforth.

116
INTERPRETATION-

Royal Enfield emerged to be the most sought after motorcycle brand on the
basis of long distance durability and safety standards compared to other
rivals. With a vote share of 73.2% it continues to have an upper hand over its
rivals.

117
INTERPRETATION-

The price range of 1.3L-1.6L was the most common answer at 56.1% by the
respondents. While the price range of 1.6L-1.9L turned out to be the 2nd
highest which the buyer would be willing to shell out. The highest price range
of 1.9L-2.2L and 2.2L-2.4L were opted by only 9.8% and 7.3% respondents
respectively.

118
INTERPRETATION-

Out of the total respondents, 65% were of the notion that Royal Enfield has
emerged to be one of the leading motorcycle brands since Independence in the
country, while 35% have a different perspective to it.

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 RESEARCH FINDINGS

 Out of the total respondents 48.8% were between the age group of 15-25
years,22% were between the age group of 25-35 years,7.3% fell in the age
group of 35-45 years,14.6% belonged to the category of age ranging
between 45-55 years & 7.3% belonged to the age group of 55-65 years.

 The brand awareness of Royal Enfield Motors amounted to a healthy

97.6% amongst the total respondents, while 2.4% of the respondents
were unaware of the motorcycle brand. Royal Enfield has emerged to be
one of the most popular two wheeler brands in the country from over a
decade.

 Out of the total respondents the feature of Riding Comfort has been
selected up to 61%, being the highest. Long distance durability has
34.1% of response share. The Look of the bike has been selected as the
3rd highest ranked feature. Seating & posture ranks 4th with 39%.The
Legacy of RE turned out to be the 2nd highest striking feature among
the respondents.

 The Classic 350 & 500 CC units has been chosen as the most sought
after Royal Enfield model being selected by 61% of the total
respondents. The iconic Bullet ranks up to be the 2nd most preferred
Royal Enfield model at 34.1%.The Himalayan has attracted the
attention of 12.2% of the respondents and is ranked at 4rd position. The
Thunderbird tops the Himalayan at the 3rd position with 22% share of
votes. The café racer Continental 650 attracts a relatively lower
audience at 4.9% owing to high its price range. The latest entrant ,the
Interceptor 650 has been selected by 7.3% of the bike enthusiasts & it
would need a considerable amount of time & effort to consolidate its
position in the market.

120
 Out of the five options the pricing and specifications of the motorcycle
were ranked amongst the top two things from the buying perspective at
51.2% and 39% respectively. Additional added features, the waiting
period and word of mouth from peers were ranked subsequently at
31.7%,24.4% & 22% respectively.

 The features of the Anti-lock breaking system & fog lamps were
amongst the widely chosen options which the buyer would opt for at an
extra price indicating the safety aspect being the top priority. They were
selected at 47.5% and 45% respectively. The option of disc brakes and
wider seats also had a fair share at 35% and 30% respectively, while the
additional duffel bags and medications in the handle bar were at the
lowest with 7.5% and 20% share.

 Out of the total respondents,70.7% were off the opinion that they would
opt for a Royal Enfield motorcycle over other competitors such as
KTM,TVS and Honda; indicating the reliability and dominance of
Royal Enfield in the Indian two wheeler market.

 Out of the total respondents, 53.7% were aware of the new launches of
two Royal Enfield motorcycles, while 46.3% were not, which is
relatively higher percentage and indicates that Royal Enfield has to put
in the hard yards to create awareness in the market about any new
launches henceforth.

 Royal Enfield emerged to be the most sought after motorcycle brand on

the basis of long distance durability and safety standards compared to
other rivals. With a vote share of 73.2% it continues to have an upper
hand over its rivals.

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 The price range of 1.3L-1.6L was the most common answer at 56.1% by
the respondents. While the price ranges of 1.6L-1.9L turned out to be
the 2nd highest which the buyer would be willing to shell out. The
highest price range of 1.9L-2.2L and 2.2L-2.4L were opted by only 9.8%
and 7.3% respondents respectively.

 Out of the total respondents, 65% were of the notion that Royal Enfield
has emerged to be one of the leading motorcycle brands since
Independence in the country, while 35% have a different perspective to
it.

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 CONCLUSION

 The study of the marketing strategies of Royal Enfield states that it

has resulted in effective performance & overall sales of the
company.

 Royal Enfield India has got a positive response from the general
masses & has a huge scaled of operation within the country.

 Over the last 6 years, Royal Enfield India has nearly quadrupled its
total sales.

 Over these years, Royal Enfield had an overall industrial growth

rate of 12.55%.

 Royal Enfield motorcycles challenged the growth rate of Harley

Davidson, making a record $482 million as income in 2018-19.

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 BIBLIOGRAPHY

 www.forbes.com
 www.enfieldriders.com
 www.mediapanther.com
 Motorcycleexpeditions.com
 www.mbaskool.com
 Main Source: Official site of Royal Enfield India.

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