Group Members:

Narayanan SKapil

ManchandaShruthi Gowda

Vivek R

Marketing Plan for

• A motorcycle manufacturing company based in Chennai.

• Founded in 1955 as Enfield India.

• In 1994 Eicher group bought into Enfield India and it named it Royal Enfield India.

• Oldest motorcycle company in the world.

The Problem (Year 2000)

• Despite the bike’s fan following the motorcycle division was making losses.

• The sale of bike was down to 2000 units a month against the plant capacity of 6000.

• The senior managers and specially Siddartha lal (promoter of Eicher Group of companies) of Eicher Motors were given final chance to revive the loss making Royal Enfield- their motorcycle devision.

• Else options were to shutdown or sell of Royal Enfield.

The Way Out and objective of Marketing Plan

• To mordernise the bikes to appel to a wider customer base.

Challenge in Marketing plan• Mordernise the bikes without taking away their

unique identity.• The risk was that Royal Enfield will lose traditional

fans intead of gaining new ones.• As the existing customers wanted Royal Enfield

just the way they had always been.

Target Segment and CEO Perspective• “We did not want to go down to commuters route

but instead look at the liesure segment,” Ravi Chandran CEO.

Government Enthusiast Lifestyle Trip Lovers

Police Classic style  Independent Long ride lovers

Security Forces Reliability PassionateHimalaya and mountain trip

lovers 

Masculanity Modern youth  

Royal feeling  

Product Strategy:

Old Legacy models: 350cc, 500cc

• Cast Iron engine. (Separate gearbox and oil sump design, prone to oil leak)

• Engine pronounces vibration and beat which Royal-Enfield customer love.

• Gears on the right side. (Opposite to most of the bikes.)• Vintage look.

Marketing Mix

Product Strategy:

New engine models: 350cc, 500cc• Aluminuim engine. (Hydraulic tapets, fewer moving parts, no

oil leakage problem, better fuel efficiency) used since 2010.• By physics it was not possible to bring the same vibration

and beat.• Obviously, it did not produce the vibrations and the beat of

the old, but international experts were consulted and sound mapping carried out for over 1,000 hours to ensure it produced the maximum rhythmic vibrations possible and a beat, which was 70 per cent of the amplitude of the original. (Classic example of brand management.)

• Gears on the left side (As most of the bikes.)• Vintage look retained.

Marketing Mix

Product Strategy:

Internal process changes to improve the quality of the components:

• The shop floor processes are fine tuned to meet the customer expectations.

• A field quality rapid action force to bridge the gap between customer expectations and the reality.

• Results: Warranty claims fell sharply.

Marketing Mix

Pricing Strategy:

• High price: premium segment. Prices: Classic 350, 346cc, 4 stroke: Rs. 1,17,900 Classic 500, 499cc, 4 stroke: Rs. 1,55,000 Thunderbird 350, 346cc: Rs. 1,11,000

Marketing Mix

Distribution strategy:

• 19 depots.• Over 250 dealers• Over 150 authorized service centers in India.• 19 area offices.• Single production facility in Chennai.

Marketing Mix

Promotional strategy and Brand management:

• Television and poster advertisement campaigns.• Trip: Marketing campeign• Social groups• Community, Events and Rides.

All above promotional strategy did big impact on cutomer attraction and engagement and are explained in detail in next slides.

Marketing Mix

Brand Management: Advertising Strategy-Trip, believe that each

individual’s relationship with his or her bike is unique.

Brand Management: Advertising Strategy- Leave

Home

Brand Management: Advertising Strategy:

Handcrafted

twitter: http://twitter.com/#!/royalenfield• Official Twitter feed of the oldest production motorcycle in

continuous production ever - Royal Enfield.

Facebook:• http://www.facebook.com/royalenfieldfans• Official fan page of Royal Enfield, to get the latest royal enfield

news, trivias, upcoming rides and also provides details how to post complaints and rules for engagement. Eg: customerservice@royalenfield.com

• => This is big thing in terms of avoiding the negative feedbacks on social sites and routing them through right channel.

Customer Service and Promotion Strategy: Social

Platform

Community:Bullet-in board: Discussions on buying and other technical stuff related to Royal Enfield. Such as: Which Royal-Enfield to buy, Fuels and oils etc.

Trips: The stories of adventurous trips of Royal-Enfield travellers.Such as: NH Bike riders trip from Goa to Kanyakumari,Solo trip to Sikkim etc.

Rides: A complete Rides calendar with rides hosted by Royal-Enfield or fans.

Customer Service and Engagement Strategy: (In

RoyalEnfield.com)

Events: Hosted by Royal-Enfield

Customer Service and Engagement Strategy: (In

RoyalEnfield.com)

Last Year Royal Enfield Sales Growth

2010-2011 2011-20120

20,000

40,000

60,000

80,000

53,000

70,000

Royal Enfield Annual Sales

Growth Plans and new challenges:

• Now, Royal-Enfield’s capacity utilization is 100 per cent. Yet there is a six months waiting period for deliveries.

• The plan is to double the capacity to 1.5 lakh bikes.• A new plant is planned at Oragadam, Chennai. The

plant will be set up on a 50 acre plot with new state of the art PT and CED painting facility, with robotic application of liquid paint, and a vehicle assembly facility to start with. It is slated to start production in November 2012.

• Challenges from iconic global brands such as Harley-Davidson which has entered the Indian market.

By:Narayanan S

Kapil Manchanda

Shruthi GowdaVivek R

Marketing Plan for

Thank you and Ride safe