Strategic Brand Management

Assignment on

Branding Strategies of Royal Enfield

By:

Mrunal A. Panchal

(1311)

Shail A. Shah

(1320)

Utsav B. Upadhyay(1325)

Pratik B. Gandhi

(1330)Index

Contents

Page No.

1. Introduction

1

2. Journey of Enfield

3

3. The Brand: Royal Enfield

21

3.1 Brand Overview

21

3.2 Brand Associations

23

3.3 Cult Branding

26

3.4 Brand Architecture

28

3.5 Brand Elements

29

3.6 POPs and PODs

30

3.7 The Logo History

31

3.8 Rebranding of Enfield

33

3.9 Royal Enfield Turnaround

34

4. Marketing Strategies of Royal Enfield

37

4.1 Target Market

37

4.2 Positioning

37

4.3 Marketing Mix

38

4.4 SWOT Analysis

52

The Challenges Ahead

53

1. Introduction

Royal Enfield is a luxury adventuring gear company that markets: motorcycles, motorcycle accessories, camping equipment, clothing and accessories for men and women as well as hunting and fishing apparatus. Above that Royal Enfield is a style and a belief that discovery and adventure are pursuits of the highest order.

The expeditionaries of the road that combine the ruggedness of the world traveler with the sensitivity of a cultured individual are the core values that should be exemplified in every aspect of the Royal Enfield brand. From the products and packaging to copy text and customer service every aspect of Royal Enfield is considered to be strong and gentle, much like the reputation that Royal Enfield motorcycles have enjoyed throughout their history, i.e. style and durability. Every customer of Royal Enfield is considered as a part of the Royal Family.

Royal Enfield is about adventure in style. Distinctiveness from the traditional bikers image is the companys hallmark. It brings quality to the unique relationship a rider has with his motorcycle. The brand provides a complete line of product for the modern road trip. From the legendary line of motor cycle, accessories and clothing to camping and hunting equipments. The Enfield bikes are complete packages of everything one might need to embark on a number of adventures. Royal Enfield offers a new perspective on the riding and travelling on a motorcycle. It aims to bring back the good old days of style and global discovery.

To its customers in India and elsewhere in the world, Royal Enfield means more than just motorcycles; it's a sense of belonging to an exclusive community with unfading passion, emotion and interest. Royal Enfield motorcycle is known for its Versatility, Uniqueness and is built to last and is also perceived as a machine in a class of its own and synonymous with Leisure and Adventure; riding and charting up the miles.2. Journey of EnfieldThe Beginning (1851 1890)Hunt End, England was a village of several small mills manufacturing needles and fish-hooks. It was here in 1851 that George Townsend put up his needle-making mill, which he named Givry Works. But it wasnt until his passing away that his son, George Jr. and his half-brother brought into Givry Works one of the first 'boneshakers' a crude cycle. It had a backbone of iron, with wooden wheels, iron tires and pedals of triangular pieces of wood! Though the bike was a source of some amusement, George and his team felt they could easily improve on it. The earliest modern safety bicycle with two wheels of equal size had appeared in about 1880. All manufacturers were trying their hand at this new venture. So was George Townsend Jr. By luck, he chanced upon an invention in his neighborhood a saddle that only used one length of wire in the two springs and in the framework. This was adopted, patented and marketed as the 'Townsend Cyclists Saddle & Spring'. He had entered the bicycle parts trade!From bicycle parts, Townsend slowly moved on to producing bicycles himself. He was also supplying a wide range of parts to other manufacturers - Givry Works was growing rapidly. Over the next three years he developed his own range of over two-dozen machines. Each machine, known locally as the 'Townsend cycle' was reputed for its sturdy frame, a character that all Enfield bikes would follow.The Coming into Being(1891 1900)

1891 A Little Trouble-Townsend got himself into a bit of financial trouble in about 1890 and called in some financiers from Birmingham. Unfortunately, they didnt quite see eye to eye. So Townsend parted ways with the financiers leaving the company to them. The financiers then brought in Albert Eadie and R.W. Smith. They took control of Townsends in November 1891. The following year the firm was re-christened The Eadie Manufacturing Company Limited. Soon after, Albert Eadie got a lucrative contract to supply precision rifle parts to the Royal Small Arms Factory in Enfield, Middlesex. 1892 Kick Starting Royal Enfield-A new company was created to market these new design bicycles called The Enfield Manufacturing Company Limited. By October 1892, the Enfield bikes were announced to the public.

The following year the word Royal (after the Royal Small Arms Company) was added and thus Royal Enfield began. Then in 1893 the Royal Enfield trademark Made like a Gun appeared. Britain was caught up in a patriotic fervor and the slogan caught the spirit of the time.In 1899 the first mechanical vehicle was advertised by Enfield Cycle Company. It was available in both tricycle and quadric cycle form, powered by a De Dion 1.5 hp engine. The high wheels, solid tires, block chains and heavy cross frames had by then given way to Diamond frames, the Hyde Freewheel, Enfield 2 speed hub and the well known Eadie Coaster. Then came the Riche Model with more refined fittings. By 1907, the cycle industry was still headquartered at Redditch, producing run-of-the-mill conventional cycles.1897-QuadricyclesIn 1897, R. W. Smith built himself a quadric cycle a simple bike with four wheels and a French engine placed under the saddle between the rear wheels. During the next two years several developments were made.

About then, an Enfield quadric cycle completed the 1,000-miles road trial of 1900 organized by the Automobile Club of Great Britain and Ireland. The Enfield vehicle was awarded the silver medal, although it had its share of troubles and breakdowns.

Motorcycles(1900 - 1910) 1904-Four Wheelers and Three

Buoyed by success, Smith and Eadie decided to extend the range of quadric cycles and tricycles to include motorcars. The first Royal Enfield cars were built in 1901 and were on the road in 1902. It was an 8hp, using a DE Dion engine. The body was made in Leicester and painted yellow hence car was known as The Yellow Car. But this was just a temporary phase, a wild romance that was soon to die. 1909-Motorcycle Craze

It would be interesting to note here that motorcycling was thought to be a temporary enthusiasm that would soon fade out! A brief spin on a motorbike then took several hours of preparations - tuning the tiny water-cooled engine, getting the tires pumped, the gears oiled and a supply of spare parts packed. In 1909, Royal Enfield took the biking world by surprise. At the motorcycle show that year, they displayed a small 2 1/4 hp V twin-engine machine built in the Swiss tradition, which ran very well. A slightly larger model was developed in 1911. A 2 3/4 hp, with all chain drive incorporating the well-known Enfield two-speed gear. This model stood up until 1914.

The Royal Enfield Bikes(1911 - 1920)

1911-Enfield and the War

The First World War began in 1914. Royal Enfield was called on to supply motorcycles to the British War Department and even awarded a contract to build bikes for the Imperial Russian Government during the same period. The machine gun combination and the 6hp stretcher-carrying outfit were some of the models produced for the war purpose. Enfield started using its own engines - a 225cc two-stroke single and a 425cc V-twin about this time. Post-war, it produced a larger 976cc twin and continued to produce the two-speed 225L until 1929. In 1917, the officers of the Womens Police Force were issued with a 2 1/4RE 2 stroke.Interestingly, the models of this period featured 600cc, inlet-over-exhaust, closed valve gear, hand-operated oil pump, two-speed countershaft gearbox and chain final drive. In the 1913-1914 Enfield V-Twin the lubricating oil was contained in a glass tank attached to the frame tube that ran from the seat to the rear of the engine. This worked perfectly and had the added advantage of providing an instant visual check of oil levels. The 1915 make 675cc in-line 3-cylinder 2-stroke prototype was the worlds first with this configuration and engine type.

The Interwar Years(1921 - 1930)

1924 The First Four-stroke-The interwar year was a period when the sidecar reached its zenith. In July 1925, the Royal Enfield V-Twin-engine Dairymans Outfit took part in the ACU Six Days Trial for Commercial Sidecars and obtained a Special Certificate of Merit for completing an arduous course without loss of marks. The year 1924 saw the launch of the first Enfield four-stroke 350cc single using a JAP engine.

1928-The Depression In 1928, Royal Enfield adopted saddle tanks and center-spring girder front forks one of the first companies to do so. The bikes now with a modern appearance and comprehensive range meant continuous sales even during the dark days of depression in Great Britain towards the end of 1930. In 1927 Royal Enfield produced a 488cc with a four-speed gearbox, a new 225cc side-valve bike in 1928, and a four-stroke single in 1931. Several machines were produced in the next decade, from a tiny two-stroke 146cc Cycar to an 1140cc V-twin in 1937. Can you even imagine that Royal Enfields range for 1930 consisted of 13 models!

The Launch of BulletReign- Creating a brand (1931 - 1940)

1933 The Bullet Arrives

In 1931 a four-valve, single-cylinder was introduced, and christened 'Bullet' in 1932. It had an inclined engine and an exposed valve gear. It was then that the first use was made of the now famous Bullet name. Longer stroke, four-valve head exposed valves and heavily finned crank case were the features that ran from 1932 until the end of 1934.1940 The Second World War

The most well known offering for the Second World War was no doubt the Flying Flea. Also known as the Airborne, this lightweight 125cc bike was capable of being dropped by parachute with airborne troupes. The Flea was fitted into a steel tubular cage called the Bird Cage, which had a parachute attached to it. The cage aided in packing turning handlebars easily. Post War Bullets(1941 - 1950)

1948 Bigger and Better

The 1939 Bullet 350 kick-started the post-war models. They used two rocker boxes for the first time. This enabled better gas flow and consequently higher volumetric efficiency. Royal Enfields own designed and manufactured telescopic front fork placed the Redditch marquee at the very forefront of motorcycle design. The biggest advancement introduced by the new Bullet was its swinging arm rear suspension system and hydraulic damper units themselves. In 1947 Enfield made a J2 - the first model with a telescopic front end, followed in 1948 by a 500cc twin (Enfield's 25bhp answer to the Triumph Speed Twin), which stayed in production until 1958.1949 The Indian Debut

In 1949, the 350cc Bullet was launched in India, when Madras Motors won an order from the Indian Army for the supply of motorcycles. It was the beginning of the reign of the Bullet in the subcontinent. The Madras Motor Company started off by receiving the Bullet in kits and simply assembling them. Then they began making the frames. After this Enfield started sending the engine in parts to be assembled in India. Eventually they were also manufacturing the engines, which meant that they were making the complete bike. For the next thirty years, the design of their bike remained unchanged! In 1950, several models were introduced: the 650cc Meteor twin; a 250cc Clipper; a short stroke 250cc Crusader; 250cc Trials; Super 5; Continental; 500 Sports Twin; Super Meteor; Constellation and the Interceptor.

Royal Enfield Product-line expansion(1951 - 1960)1951-In the UKNever before in British automobile history had so much been done in a single decade, not just by Royal Enfield, but the every other marquee of the time. All new engines, all new configurations, new paint schemes, new capacity classes the motorcyclist had never had such a wide choice ever before. The 1950s saw the market open up both ways, downwards for smaller capacity, light and maneuverable machines, and upwards for larger capacity, high powered and reliable motorcycles. The Royal Enfield showrooms in the UK saw everything from 125cc two strokes to the mighty700ccMeteor.

1955-Meanwhile in MadrasThe Indian Army, the sole reason why the Bullet was brought to India in the first place, insisted that they would continue doing business with Madras Motors only if the Bullet was produced indigenously. The Enfield India Bullet of the late fifties was quite a different motorcycle from the one we are used to today. Using the famed Lucas Magdyno ignition system, the 1955 Bullet was almost a clone of the 52 Redditch Bullet. The frame, electric tin ware and rolling chassis, however, were to undergo many changes over the next ten years, with the Bullet slowly evolving into the familiar form we know and love today.A Tale of Two Cities (1961 - 1970)

1961-Back in the UKIn 1960, the badge arrangement with Indian (Of America) had ended, so Enfield was no longer sold under the Indian marquee (Royal Enfield rival, British AMC company, acquired the Indian Sales Corp. in 1959). However, in 1961, Eddie Mulder won the Big Bear Enduro on an Enfield, which

gave the company a new foothold in the U.S. under its own name and started a new marketing of the product. Models available in the U.S. that year included a 700cc twin and six street scramblers, ranging from the 250cc Hornet to the 500cc Fury (essentially the single-cylinder Bullet) to the 700cc Interceptor. Elliot Shulz also dominated the half-mile dirt track in Los Angeles on an Enfield that year. Enfield won 31 out of 39 races in 1961 and had several spectacular victories in 1964.Royal Enfield had arrived on The Continent! But things at Redditch had hit a bad patch.

1963-But back home in Madras

By 1970, Enfield India was a company established in its own right, and with a production line going full steam, the need for collaboration with Enfield of the UK and Villiers of the UK was no longer seen. But the Bullet flew true and strong. A number of changes had already been made to the tin ware on the Bullet. Mudgaurd design took on different forms, taking into account the wet, slushy and messy road conditions during the Indian monsoon. The Magdyno also gave way to the alternator Delco ignition system. And front and rear hubs were designed to provide more efficient cooling for Indian conditions, and thus improve braking performance.All That Enfield's Isn't a Bullet(1971 - 1980)

1973 The Mini Bullet

With the success of the Sherpa, Enfield India launched the 173cc Villiers-powered Crusader in India in 1973. A totally indigenous effort, this small motorcycle used many Bullet chassis parts, including fork legs and mudguards, and instantly found a market among the many that wanted a Bullet, but were diffident about handling its weight and size. The Mini Bullet too was introduced this year. This motorcycle was a 200cc two stroke sporting contemporary design. Enfield India attempted to reach out to the young market, providing them with a zippy, reliable and economical two-stroke.

Tough Times Ahead(1981 - 1990)

1983 Here comes the LightweightsLike the adage that goes, "when the going got tough, that's when the tough get going". Enfield India got squarely into the fray with a slew of lightweight machines. The 50cc Silver Plus step-through and Explorer motorcycle are launched. Powered by the Zundapp-engineered 50cc, 6.5hp two stroke motors, these bikes redefined the entry-level segment. The Silver Plus, initially a two-speed and then later a three speed, found a ready market not only among the young office going male, but among an increasing number of women who found the step-through design convenient. The Explorer, with its contemporary bikini fairing and 'fastback' tailpiece. Both bikes sported alloy wheels, a first in India. Close on the heels of the little wonders came the Fury 175. Powered by a 175 Zundapp two-stroke engine with a five-speed gearbox, this refreshingly quick motorcycle came fitted with a hydraulic disc brake. Again a first in the country. And a bike, many feel, much too early in India.

1984 Brand New Vintages-The 80s also saw the Bullet in many different avatars. The Deluxe models appeared, in resplendent chrome and metallic colors, and 12 volt electrical were offered as an option, to aid in brighter lighting and easier starting. It was also the year when Enfield India grew confident enough about their flagship product to begin sending 'coals back to Newcastle'. Owing to their status as 'brand new vintages', Enfield Bullets found a strong niche market in the UK and Europe, among people looking to come back to motorcycling.

Enfield Becomes Royal Enfield(1991 - 2000)

1990 Heavy Fuel-The 1990's saw many revolutionary models from the company. The Taurus Diesel was the first production Diesel motorcycle in the world.

1993 Bullet 500

The Bullet 500 was launched in June this year. It went on to become the most coveted model.

1994 EICHER Acquires Enfield

In March the ailing company got a new lease of life when Eicher group acquired Enfield India Company. The company name changed to Royal Enfield Motors Limited.

Royal Enfield(2001 - 2010)

2001:-The Dare Devils, the motorcycle display team of the Corps of Signals, Jabalpur forms a Human Pyramid of 201 men on 10 Enfield 350cc bikes and rides a distance of more than 200 meters. 2002:-

Indias first Cruiser The THUNDERBIRD- is launched.BBC Wheels awards it The Best Cruiser 2002 title. The Bullet Machismo enters commercial production. Dan Holmes and Johnny Szoldrak won the National Road Race Championship (60s Class) on a Bullet.

2003:-The first RIDER MANIA gets together is held in Goa. REDS are formed in Pune. The Bullet enters the Automotive Hall of Pride at the ICICI Overdrive awards.1000 Riders descend on Redditch for the Royal Enfield Owners Club 25th Anniversary. Royal Enfield is one of the top ten 125-500 cc brands in UK.2004:-

The 2004 Bullet Electra is launched. The retro styled Bullet Machismo is rated No.1Cruiser in TNS Auto car survey. The Bullet Electra International with a lean-burn engine is launched in the UK.34 men ride simultaneously on a Bullet, setting a new world record.

2005:-

Royal Enfield India Celebrates 50 glorious years of motorcycling and unveils a blueprint for the future. The 2005 Bullet Electra features a revolutionary 5-Speed left side gear shift that makes the marquee more accessible to motorcyclists.2006:-Royal Enfield develops a fully integrated Twin Spark, 5-Speed engine that delivers a dramatic increase in performance and efficiency. The new engine will power all domestic and International models from 2007 onwards. 2007:-

Royal Enfield launches the all new limited edition Machismo 500LB with customized accessories.

The legendary Bullet 350 needs no introduction. Now Bullet 350 is with all new UCE engine. This classic machine has kept place with advances in engineering and ergonomics without diluting its impeccable pedigree. A long wheel base and bigger tires provide increased stability and road grip, making it ideal for long distance travel.Its aristocratic black & gold livery and thumping engine beat remind passers-by that they are in the presence of automotive royalty.

2008The Thunderbird Twins Park will be the first model to feature Royal Enfields revolutionary Unit Construction Engine. All the well loved features of the Thunderbird have been retained and enhanced in some cases. Also, the twin benefit of improved performance and engine efficiency makes this motorcycle hard to beat in terms of pure riding pleasure and visual delight. The evolutionary mix of old and new features in this motorcycle will surely delight its owners.2009:-

The smaller twin of the Classic 500, the Classic 350 will hold its own against any other motorcycle and then pull some more. The Classic 350 shares its power plant with the Legendary Thunderbird. The torque to flatten mountains and the fuel efficiency to cross entire ranges comes in the same understated yet charming styling. This is a motorcycle that does not need to shout to be heard. Born of a rich heritage and bred with Royal Elegance this 350cc thumper has all the qualities of a typical Royal Enfield. Appreciated then, appreciated now...Why ride a lesser bike.

The Classic 500 comes to India. Armed with a potent fuel injected 500cc engine and clothed in a disarmingly appealing post war styling, this promises to be the most coveted Royal Enfield in history. For those who want it all. The power, the fuel efficiency, the reliability and simple, yet drop dead gorgeous classic styling. The classic turns heads not because it wants to but because it cant help it. You will appreciate the beat not just for the music it creates but also for the muted feeling of strength and power that it signifies. The view is simply better when you are astride a Royal Enfield Classic 500 whether moving or still. 3. The Brand: Royal Enfield

3.1 Brand OverviewRoyal Enfield is a luxury adventuring gear company that markets: motorcycles, motorcycle accessories, camping equipment, clothing and accessories for men and women as well as hunting and fishing apparatus. Above that Royal Enfield is a style and a belief that discovery and adventure are pursuits of the highest order.

The expeditionary of the road that combine the ruggedness of the world traveler with the sensitivity of a cultured individual are the core values that should be exemplified in every aspect of the Royal Enfield brand. From the products and packaging to copy text and customer service every aspect of Royal Enfield is considered to be strong and gentle, much like the reputation that Royal Enfield motorcycles have enjoyed throughout their history, i.e. style and durability. Every customer of Royal Enfield is considered as a part of the Royal Family.

Royal Enfield is about adventure in style. Distinctiveness from the traditional bikers image is the companys hallmark. It brings quality to the unique relationship a rider has with his motorcycle. The brand provides a complete line of product for the modern road trip. From the legendary line of motor cycle, accessories and clothing to camping and hunting equipments. The Enfield bikes are complete packages of everything one might need to embark on a number of adventures. Royal Enfield offers a new perspective on the riding and travelling on a motorcycle. It aims to bring back the good old days of style and global discovery.

To its customers in India and elsewhere in the world, Royal Enfield means more than just motorcycles; it's a sense of belonging to an exclusive community with unfading passion, emotion and interest. Royal Enfield motorcycle is known for its Versatility, Uniqueness and is built to last and is also perceived as a machine in a class of its own and synonymous with Leisure and Adventure; riding and charting up the miles.

3.2 Brand associationsSome of the brand associations of Royal Enfield are: Handcrafted

A Royal Enfield is a rare breed in an age of mass-produced, user-friendly predictability. This is a mechanical motorcycle, handcrafted with love, engineered with purpose, and designed in a way that gives each machine its own unique character. This character is reinforced by Royal Enfield's cultural DNA - by where it was born, and by where it is now built. Its classic British pedigree shows in every line, while the gleaming new engine hints at the devotion that has enabled this legendary marquee to thrive in the outskirts of Chennai.

This campaign, "Handcrafted in Chennai", is a tribute to the wonderful people who build, sell, ride and maintain these beloved machines, and is a heartfelt tribute to the city that Royal Enfield calls home. Style

Royal Enfield is about style, panache and distinctiveness. Royal Enfield believes that each individuals relationship with his or her bike is unique. Their perception of themselves with their bike is equally distinct. The brand campaign called Trip was launched to pay a tribute to Royal Enfields authentic character as well as their owners'. The campaign draws instances from real lives and bikes; the people who have explored their adventurous traits on their Royal Enfield and others who have pushed the limits to find their place in the sun. Yet some more who have simply given in to their passion for riding and of course, their Royal Enfield. This campaign aspires to honor these timeless passions and the spirit of motorcycling in a world thats increasingly dependent on virtual reality.

Adventurous Royal Enfield is about adventure in style. Distinctiveness from the traditional bikers image is the companys hallmark. It brings quality to the unique relationship a rider has with his motorcycle. The brand provides a complete line of product for the modern road trip. From the legendary line of motor cycle, accessories and clothing to camping and hunting equipments. The Enfield bikes are complete packages of everything one might need to embark on a number of adventures.

Ruggedness The ruggedness of the Royal Enfield Bullet with a 5 Speed left hand side gearshift. Electric start for immediate starting. Of course the kick start is still there for the purists. Digital Transistor Controlled Ignition ensures that starting and power delivery is optimized. Gas filled shock absorbers added to the Bullets legendary poise allow for greater comfort. Front Disc brakes provide for better stopping ability. It itself making the image of durable and tough in every situation in terms of riding and comfort, thats why it was going to be prefer in army for the starting days of the brand un India. Royal Enfield are manufactured in India. They are rugged and simple to maintain and fix, which is why they are very popular in the Himalaya regions. The most popular model is 350cc, but there is also a 500cc version.Royal Enfield "Bullet" motorcycles are also heavy, sometimes unreliable and not fuel efficient, because they are based on a design that dates the 1940's, with only minor changes and improvements Super Quality Royal Enfield bullet has become the popular bike in India due to its super qualities. The bikes are mainly an admired by the Army and Police people. Royal Enfield bullet 350 is traditional model that with advances in engineering and has made the remarkable position in the two wheeler industry. From past five years the bike has carried more than 150 changes but still remain with the same looks as it did 50 years back. Royal Enfield bullet 350 comes between price ranges of Rs. Rs. 73, 400 to Rs. 83, 000.Royal Enfield bullet Electra is the known for its well quality and powered by the 500cc engine. The features associated with this bullet Electra are front disc brakes gas rear shocks transistorized coil ignition constant velocity 29 mm carburetor and higher gearing than the Enfield Bullet Classic. The bike cost near about Rs. 88,300 to around Rs. 94.2 lakh. Royal Enfield bullet Electra price is varying upon the dealer's location. Royal Enfield Bullet Electra 5S (346 cc) is the more advanced variant of this bike.

3.3 Cult BrandingCult brands are a special class of magnetic brands that command super high customer loyalty and almost evangelical customers or followers who are devoted to them. Cult brands are the one with focused, committed target customers with high degree of reverence for the brand, who are willing to put extraordinary effort to acquire and use the brand and are willing to publicly demonstrate their love for the brand in an extraordinary manner. While brands work hard to make their presence felt, cult brands defy all rules/norms of marketing and create a strong community which no other can match. Royal Enfield is one such instance.Offering a uniquely masculine motorcycle with a signature thump sound, Enfield has pulled off a legacy brand with its all-terrain heavy motorbike Bullet. Royal Enfield has a very strong network of riders, service mechanics and of designers & modifiers who offer creative customizations on the motorcycle too. It has an ecosystem of its own which is a very social one.India was basically a scooter market few years back. However,the last few years have changed the way people see and perceive bikes. Indiais now seeing a trend of 150 cc or above bike segments, but Bullet was always present with the ranges of 250 cc, 350 cc and500 cc bikes. Many bike lovers across India saw this bike as a cult. Now when the Indian bike market has evolved and come of age, Royal Enfield is also re-establishing itself. Royal Enfield has invested over Rs.65 crores,to double their production capacity to one lakh units.The Chennai-based company, which has been expanding its export markets, also said it expects overseas sales todouble over the next five years. Royal Enfield is bringing the Classic Version of Bullet back. The classic versionis based on the famous original Bullet of 1950's.The company has also changed its website a lot. Now on the site, there are alot of communities, Blogs, Trip Stories, forums which establishes Bullet as a cult brand in itsown league. The site looks quite like Harley Davidson site. Now, with Harley Davidson actually coming to India, Bullet has a hiddenopportunity. The cruise bikes would gain popularity and Bullet would be an obvious choice for people who would not be ableto afford a Harley. Also, there are a lot of bikes in 200- 250 cc segments that are being launched in India so people willnow look up to Bullet for a Flashy Big high CC Bike.

Bullet is a tradition in Punjab. Peopleflaunt it, People aspire it. Bullet is truly a Cult brand in Punjab and also other interiors of India. This is amazinghow aChennai based brand has achieved a cult status in Punjab. Bullet needs to leverage this to establish it as a big Cult brandin whole of the India.

Bullet also sponsors many trips in India in which it provides Bikes for the Trip and Branded T-Shirts too.Bullet also organizes a 16 day Royal Enfield Himalayan Odyssey every year. These allexercises can take Brand to new heights, the Cult Height.

3.4 Brand ArchitectureIn the chart below we can observe the expansion of the Royal Enfield brand from a motorcycle company like any other to the aristocratic patron of adventure that it represents.

3.5 Brand ElementsBrand symbol consist consists of brand character and brand logo. In case of bike generally brand symbol consist of brand logo.

Brand Logo

It is a combination of shapes and colour used in a brand name. The four distinct element of brand logo of Royal Enfield are:

Brand Name: Royal Enfield, consist of companys name i.e. Royal Enfield.

Colour: Colour of the logo is red which signifies Energy, Excitement and a will to win.

Slogan: Leave Home.

Font: The fonts used are in upper case and bold enough so that it is visible from a distance and reflects the bold image of the brand.3.6 POPs and PODs

Some of the POP (Points of Parity) and POD (Points of Differentiation) of Royal Enfield are:

POP (Points of Parity): Classic heavy body design

13.5 15.5 bhp (power)

Masculine looks

Broader, stylish and larger capacity fuel tanks

Larger wheels

High performance: 4 stroke, 350 cc and 500 cc engines

Digitally operated spark plug

Strong on Road presence

Brakes: Disc (front)/ Drum (Rear)

Stylish and bigger silencer

Flaring headlamps

Funky and trendy shades adding more to masculinityPOD (Points of Differentiation):

Fully manpower production

Cheap in its segment

Very high customer loyalty

Loyalty rides in India

Royal riders fan club

Only male-oriented bike showing women biking advertisements

3.7 The Logo HistoryThe formal representations of Royal Enfield have always been restrained and stylish. For years, they have followed the same theme and kept the tradition alive. Here is a look at the various logos that have been used till now.

1861

1891

1916

1932

1938

1952

1960

1980

2005

2008

In developing the new logo for the Royal Enfield brand the main concerns were communicating the tradition and quality involved. The new logo expresses the style, tradition, energy and excitement. It balances between the vintage and the modern and evokes a familiar memory.3.8 Rebranding of EnfieldRoyal Enfield was the name under which the Enfield Cycle Company made motorcycles, bicycles, lawnmowers and stationary engines. Use of the brand name Royal Enfield was licensed by the Crown in 1890. Royal Enfield motorcycles made in England were being sold in India from 1949. In 1955, the Indian government looked for a suitable motorcycle for its police and army, for patrolling the country's border. The Bullet was chosen as the most suitable bike for the job. The Indian government ordered 800 350cc model Bullets. In 1955, the Redditch Company partnered with Madras Motors in India to form 'Enfield India' to assemble, under license, the 350cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). The first machines were assembled entirely from components shipped from England. In 1957, the tooling was sold to Enfield India so that they could manufacture components. By 1962, all components were made in India.In 1990, Enfield India entered into a strategic alliance with the Eicher Group, and later merged with it in 1994. It was during this merger that the name Enfield India changed to Royal Enfield.

Purpose of Rebranding

The purpose of rebranding Royal Enfield was to closer define and set the brand apart from its competitors. Where in the past, the brand would share similarities with the image of the traditional motor cycle companies (Harley Davidson, Triumph) it mow sets itself apart by defining a unique tribe of followers and a turn towards adventure.

In the established style department Royal Enfield has an advantage that until today went unused. The idea of legendary stylish motorcycles now defines a number of products and brings back the concept of the cultured adventurer. Taking a que from the days of Royal expeditions, Royal Enfield is about doing it in style.3.9 Royal Enfield TurnaroundThe Problem

In the year 2000 there were major problems infront of the Eicher motors in terms of its motorcycle brand Royal Enfield. Due to the drastic decline in sales, Eicher Motors had decided to either shut down or sell off Royal Enfield - the company's Chennai-based motorcycle division, which manufactured the iconic Bullet motorbikes. For all its reputation, the sales of the bike was down to 2000 units a month against the plant's installed capacity of 6000, losses had been mounting for years. Though the bikes had diehard followers, there were also frequent complaints about them - of engine seizures, snapping of the accelerator or clutch cables, electrical failures and oil leakages. Many found them too heavy, difficult to maintain, with the gear lever inconveniently positioned and a daunting kick-start.Taking Initiatives

Just one person stood up to the board, insisting Royal Enfield should get another chance. He was Siddhartha Lal, a third generation member of the Delhi-based Lal family, promoters of the Eicher group of companies. Lal, then 26, was an unabashed Bullet fan: he even rode a redcoloured Bullet while leading the baraat (procession) to his wedding venue, instead of the traditional horse. The board had agreed to give Siddhartha Lal a chance. It was not because of its confidence Lal, but because the business was doing so badly that it could hardly get any worse. Lal felt Royal Enfield could still be saved. The bike had its reputation, a cult following, an instantly recognisable build, and aspirational value. Changes had to be made to keep up with the times and make the bike more acceptable, and therein lay the problem. Royal Enfield fans liked the bikes exactly the way they had always been. "We needed changes to attract new customers but by doing so risked losing existing ones," says R.L. Ravichandran, whom Lal brought in as CEO in 2005 as part of his revival effort. Ravichandran had earlier worked with both TVS Motor and Bajaj Auto.The change had to be a calibrated one. The mistaken notions of prospective customers had to be addressed, and any reservations about Bullet and Thunderbird, which was launched in 2002, removed. At the same time, Lal and Ravichandran were clear that the individuality of Royal Enfield bikes should not be compromised. It is at this point of time that the company decided to touch the leisure segment.Modernising the BulletRetaining the bikes' rugged looks was a given, including the build, the design of the head lamp and the petrol tank. But should the gears be shifted close to the rider's left foot - as in most bikes - or retained on the right side? The question gave Lal and his team many sleepless nights, since long time users were dead opposed to the change. The engine was another thorny question. The old cast iron engine was a relic of the past. Its separate gear box and oil sump design made it prone to oil leaks and it seized up very often. Its ability to meet increasingly strict emission norms was also suspect. A modern aluminium engine would eliminate these problems, but it would lack the old engine's pronounced vibrations and beat - which Royal Enfield customers loved. Laws of physics made it impossible to replicate these with the new engine.

The new aluminum engine improved the bikes' performance, but could not recapture fully the beat of the old oneThere are many global examples of auto companies going under following a radical change in the engine of their products. Yet Lal and his team proceeded to both alter the position of the gears and design a new engine. Many of the old engine's characteristics like - the long stroke, the single cylinder, the high capacity with push rod mechanism were retained. But the new engine, unlike the old, had hydraulic tappets, a new engine arrangement, new metal and fewer moving parts. 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.

The petrol tank's design was left largely untouched as it contributes to the bike's sturdy, vintage look.

The new engine had 30 per cent fewer parts and produced 30 per cent more power than the old, with better fuel efficiency. Two other problems needed to be addressed: the quality of some of the components Royal Enfield bikes were using, and the sales experience. To tackle the first, shop floor processes were fine tuned, while suppliers were exhorted to improve quality levels. Royal Enfield also embarked on a large scale internal exercise to tone up performance. Slowly, the tide turned. Engine related problems and oil leakages in Royal Enfield products almost disappeared. By 2008 dealers were reporting lower workloads. Warranty claims fell sharply too. Malfunctioning of the sprag clutch, on which the electric starter depends, declined, for instance, from five per cent in 2005/06 to 0.2 per cent in 2010/11. Royal Enfield also began conducting marquee rides to promote leisure biking. Also to improve the sales experience new company owned showrooms were launched and dealerships have expanded.

4. Marketing Strategies of Royal Enfield4.1 Target MarketRoyal Enfield, as a premium brand, targets affluent Indians as its consumers. The segment of market which Royal Enfield caters to is urban working professionals or students and surprisingly also the people from the rural areas who are the real hardcore bullet lovers.

A large number of these are coming up from industries such as IT, banking, pharma and FMCG. Now, people earn more money and have greater disposable income. They want to make a statement and enjoy the ride for which bike is a perfect fit for them. They have targeted this growing set of consumers with their classic series of motorcycles - Classic 350 and classic 500, along with thunderbird series. With traditional stronghold markets of Punjab and Kerala, Ludhiana being the highest purchaser, Enfield has consumers who really like the feel and sound of the bike and are real loyalists. The target market of Enfield as mentioned above is based on selective specialization of Market in 350cc-500 cc range. The differentiated products which it offers in this category serve the market or segment which has a pleasure for riding. The target market is the hardcore bullet lovers, the ones who have bought the bike through thick and thin and are looking for steady, sturdy and rough and tough bike. Because of its power and ruggedness it has found a target market in Indian defense services, police and paramilitary forces.4.2 Positioning

Royal Enfield is positioned as a leisure and practical brand and has its own niche market for itself. It has positioned itself as a promoter not of motorcycles but of motorcycling experience. The voice of Enfield is compared to a tractor, but even that has helped it position in the minds of its customers and aspirants. Built around quality and unflinching loyalty to the customer, a few reasons why the legendary Bullet is not just a bike but is also considered as a motorcycling icon. The ruggedness and reliability of the bike is endorsed by the army, the police, the paramilitary forces and over 500 institutions which form part of the die-hard customer base of the Bullet, dubbed the "Rajagadi", or royal vehicle. Another positioning perspective of Royal Enfield is to be considered as a truly genuine touring motorcycle. It's a bike for long distance travelers, which is known as riding and eating up miles. It is also known, amongst hard core bikers, as promoter of leisure motorcycling as a lifestyle and encourages the Royal Enfield riders/owners to keep riding. It's a bike which most of bike lovers wants to own and shares a place in their heart.4.3 Marketing Mix Product

The differentiated positioning and target market of Royal Enfield in the bike market, has forced the Eicher group to strategize and place itself differently. The products offered by Royal Enfield makes riding bikes an absolute driving pleasure while going for long drives. The product offerings of the Royal Enfield have been described below:

Classic 350

The smaller twin of the Classic 500, the Classic 350 will hold its own against any other motorcycle and then pull some more. The Classic 350 shares its power plant with the legendary Thunderbird Twinspark. The torque to flatten mountains and the fuel efficiency to cross entire ranges comes in the same understated yet charming styling.

This is a motorcycle that does not need to shout to be heard. Born of a rich heritage and bred with Royal Elegance this 350cc thumper has all the qualities of a typical Royal Enfield. Appreciated then, appreciated now. The Classic 350 is powered by a single cylinder 350 cc, twin spark, air cooled engine. It features a short silencer, fuel warning indicators and a classic speedometer. It also has an option of a single seat which has springs for more comfort.Classic 500

Armed with a potent fuel injected 500cc engine and clothed in a disarmingly appealing post war styling, this promises to be the most coveted Royal Enfield in history. The power, the fuel efficiency, the reliability and simple, yet drop dead gorgeous classic styling. The classic turns heads not because it wants to but because it cant help it. You will appreciate the beat not just for the music it creates but also for the muted feeling of strength and power that it signifies.

The Classic 500 cc comes with class features. It is run by a single cylinder 500 cc engine called UCE (Unit Construction Engine), and this engine depends on fuel injection than the carburettor. As a result, decreases in friction of moving parts and loss of transmission are evident. The view is simply better when you are astride a Royal Enfield Classic 500 whether moving or still. The news of the most recent chrome finished Classic 500 is creating a sense of excitement among Bullet enthusiasts and the launch is much awaited in India.Thunderbird 500

The all new Royal Enfield Thunderbird is now with a powerful 500 cc engine, a 20 litre tank, digital meter console, LED tail lamps and in three striking shades of black gives a new definition to Highway cruising. Perhaps one of the most anticipated models from the Royal Enfield stable, Thunderbird 500 is poised to enhance the pleasure of leisure motorcycling amongst the touring enthusiasts.

Classic Desert Storm

The Classic Desert Storm comes with a sand paint scheme reminiscent of the war era, a time when Royal Enfield motorcycles proved their capabilities and battle worthiness by impeccable service to soldiers in harsh conditions of the desert.

Donning a younger look with styling cues one would expect only from a genuine Royal Enfield: single cylinder air-cooled pushrod engine, 1950s style nacelle and toolboxes, traditional paint scheme and buffed engine components, this motorcycle is all set to bring the pleasures of modern motorcycling while reflecting the aura of eternal classic styling.

Thunderbird Twinspark

The Thunderbird Twinspark was the first model to feature Royal Enfields revolutionary Unit Construction Engine. All the well loved features of the Thunderbird have been retained and enhanced in some cases.

Also, the twin benefit of improved engine performance and efficiency makes this motorcycle hard to beat in terms of pure riding pleasure as well as visual delight. The evolutionary mix of old and new features in this motorcycle sets it apart and makes it special for its owners.Classic Chrome

The Royal Enfield Classic Chrome is based on the Classic 500 with a rather generous dose of chrome on it. Like the Classic 500, the new Classic Chrome retains the quintessential classic British styling of the 1950s: simple, harmonious, well proportioned.

The Chrome sports a seat with a leather finish and adds to the visual appeal of the motorcycle. Built of old-fashioned metal, in clean elegant lines of Chrome combined with a rich paint finish the design of the Royal Enfield Classic Chrome is a tribute to the retro look of post war British motorcycles.These are some of the most famous product offerings of Royal Enfield. The products offered by Royal Enfield makes riding bikes an absolute driving pleasure while going for long drives. Targeting, Positioning and Marketing Mix (Product) of Royal Enfield Royal Enfield has positioned itself as a bike for passionate bike riders and those who travel more and frequently. Based on the positioning Enfield has designed the product which is more stable and power driven. The maximum power of 19.8 bhp and 27.2 bhp helps the bike to drive easily on hilly terrains. The torque and five gear transmission helps for more power distribution at each gear level and hence better performance. The disc brake at front tires provides emergency and stable brake system which does not allow bike to skid on the roads at high speeds and thus provide stability which is must for a travelers bike and for all weathers. The maximum speed has been kept again according to the needs and positioning of the brand. The product offerings of Royal Enfield offers their target market with all the features in a product which also provides them with a non resisting temptation of driving Enfield and adds to their status symbol. Price

The table below shows the price list of the various bike models of Royal Enfield:Royal Enfield Models Price(avg.)

Thunderbird 5001,10,200

Classic Desert Storm1,05,000

Classic Chrome1,68,000

Classic Battle Green1,09,000

Classic 5001,55000

Classic 35095,000

Thunderbird Twinspark1,07,500

Bullet Electra Twinspark1,04,000

Bullet 350 Twinspark70,000

Bullet Electra EFI93,150

Bullet Electra Deluxe1,03,000

Bullet 500 classic1,24,000

Pricing strategy is as simple as in other bike manufactures, but their segmentation strategy is for tough, ruggedness image, youth, high price with powerful structure strategy for Royal Enfield. They have high range of 170000 to lower around 75000 Rs. But still it is far from the reach of a normal person. However still it is lower than the bikes in the powerful engine category like Ninja, Honda CBR, etc. and also lower than the price of Harley Davidson bikes. Place

Royal Enfield has a distinct placement and distribution system for its products.

Channel Management Channel Environment & Strategy

Channel environment at Royal Enfield is exclusive owing to the fact that dealerships are also exclusive; meaning that a channel will sell only Royal Enfield vehicle and that too of a category, for example, a channel will sell only trucks made Royal Enfield. So it is a dedicated channel much like cars. As a result there is no conflict of interest because the dealer is selling only vehicles of Royal Enfield.

The challenge is to find a dealer who is willing to be a part of such an exclusive channel. Exclusivity is also a barrier considering not many dealers would want to commit to just one company/channel. Secondly it involves a heavy capital investment. Channel Structure & Design

Royal Enfield has three types of channel structure:

1. 3-S structure

2. 2-S Channel

The 2-S channel is used if there is a very big territory and adequate no. of vehicles are not sold but vehicles are supplied in those areas then only service and spare is required (The dealer is not authorized to sell).

3. 1-S Channel These are retailers who sell spares only.

While selecting channel members following characteristics are considered by Royal Enfield:

Years in business

Size of dealer

Growth and profit record

Cooperativeness and reputation

LocationThe distribution system is quite transparent as the customer the company is targeting is niche market, so no need to be a too thick into the distribution channel and they are offering showroom belonging to the all demographical variables, like age, education level, average income, with the help of that they are offering only to the limited city across the country. Promotion

The promotion strategy of Royal Enfield is quite different from other automobile manufacturers. They have not been going for aggressive TV commercials like other companies but their promotion strategies are focused on building their image as a cult brand of India.

Brand Campaigns

1. Handcrafted in India - CampaignA Royal Enfield is a rare breed in an age of mass-produced, user-friendly predictability. This is a mechanical motorcycle, handcrafted with love, engineered with purpose, and designed in a way that gives each machine its own unique character. This character is reinforced by Royal Enfield's cultural DNA - by where it was born, and by where it is now built.

Its classic British pedigree shows in every line, while the gleaming new engine hints at the devotion that has enabled this legendary marque to thrive in the outskirts of Chennai. This campaign, "Handcrafted in Chennai", is a tribute to the wonderful people who build, sell, ride and maintain these beloved machines, and is a heartfelt tribute to the city that Royal Enfield calls home.

2. The Trip - CampaignRoyal Enfield is about style, panache and distinctiveness. We, at Royal Enfield, believe that each individuals relationship with his or her bike is unique. Their perception of themselves with their bike is equally distinct. We launched the brand campaign called Trip to pay tribute to Royal Enfields authentic character as well as their owners'. The campaign draws instances from real lives and bikes; the people who have explored their adventurous traits on their Royal Enfield and others who have pushed the limits to find their place in the sun. Yet some more who have simply given in to their passion for riding and of course, their Royal Enfield. This campaign aspires to honor these timeless passions and the spirit of motorcycling in a world thats increasingly dependent on virtual reality. Go ahead, enjoy the trip!

Product Campaigns1. Thunderbird 'Leave Home' CampaignIts not uncommon for Indian men to live at home for far too long (even once they're married with kids) because of their parent's traditional mindset, missing out on a more exciting life because of it. The Leave Home campaign gave a voice to a new generation suffering from this problem and provided the solution in the form of the Thunderbird.This ad campaign also communicates the slogan of the company Leave Home. It describes the various relationships one has with ones family members, friends, his/her love and lastly tells them to leave their home and have an independent and adventurous life.

Some of the other print ads of Royal Enfield are shown in the figures below: Publications

Royal Enfield has been also publishing special magazines like the Beat which is a monthly magazine and The Himalayan Odyssey and Trip which are the yearly magazines. The experiences of the happy customers are shared in these magazines and show they act as testimonials for other customers. Also the BEAT magazine is full of photographs showing various photos of the journeys of Royal Enfield and experiences of the customers. Through this magazines Royal Enfield is trying to build the customer loyalty and also inspiring the new adventurous customers to go for Royal Enfiled bikes. Organizing various Tours and Trips Royal Enfield has been organizing various tours and trips to maintain their core customer segment. They have been organizing programs like ROK Rann of Kachchh, Himalayan Odyssey and the most recent one is the Tour of Bhutan. This is how they are trying to involve their customers in building the brand and various Royal Enfield lovers from all over the country participate in such programs.

4.4 SWOT AnalysisSTRENGTHS

Size and scale of parent company

Effective Advertising Capability

Committed and dedicated staff

High emphasis on R and D

Experience in the market

Established brand

Established market channel

Power, Speed & AccelerationWEAKNESSSES

Small showrooms

Not much emphasis on aggressive selling

Weak product diversity

OPPURTUNITIES

Growing premium segment

Global expansion into the Caribbean & Central America

Expansion of target market (include women)

Increasing dispensable income

1st mover advantageTHREATS

Cut throat competition

Increasing number of players in the market

Rising raw material costs

Increasing rates of interest on finance Entry of Harley Davidson

The Challenges AheadRoyal Enfield has been successful to pull itself from the difficult times it had faced during the year 2000 when it was on the verge of selling off or shutting down. Also it has been successful in building itself as the Indian Cult brand. But with the changing consumer preference and the marketplace and with the entry of players like Harley Davidson, there are still a lot of challenges that Royal Enfield will have to face in the future.Now, with Harley Davidson coming to India, Royal Enfield may have a hiddenopportunity. The cruise bikes would gain popularity and Bullet would be an obvious choice for people who would not be ableto afford a Harley. Also, there are a lot of bikes in 200- 250 cc segments that are being launched in India so people willnow look up to Bullet for a Flashy Big high CC Bike. But for the time being some of the questions before royal Enfield now are: What is the pen profile of its prospective buyer? Will the niche that appealed yesterday, appeal today? What are the volumes it hopes for in this niche? How to stay profitable there? What should Royal Enfield do to get today's aspirers on board?Weapon smith

Hunting Rifles

Rifle cases

Knives

Binoculars

The Armory

Helmets

Riding gloves

Riding jackets

Bags

Scribe

Luggage

Watches

Belts

Socks

Guardaroba

Mens wear

Womens wear

Travel guides

Photo books

Hunting Manuals

The Quest Steed

Road-trip ready bike

Expedition

Tents

Blankets

Cases

Outdoor Cooking sets

The Stables

Motorcycles

Sports Parts

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