Vishal Agarwal

CMBA6/1521
History of
Royal
Enfield
Place your screenshot here
Market Size & Growth Trends
Size Growth

Royal Enfield 2.2% 41.23%

Harley
0.02% 39.19%
Davidson

Hero Motocorp 41.12% -4.94%

TVS Motor 12.22% 0.75%

Other 44.44% ----

Source: http://bikeadvice.in/jan-2015-2-wheeler-sales-report-manufacturers-market-share/
http://www.autocarpro.in/analysis-sales/india-sales-analysis-2015-8538
Future Projections
Royal Enfield Himalayan
cost will be kept between
INR 1.65 lacs to 1.85 lacs
(ex-showroom)
Single cylinder 4 stroke
Fuel Tank Capacity15
litres
Displacement 411 cc
Electric Start
Bike Category (cc)250cc-
500cc
Source: Type Adventure
http://www.carblogindia.com/royal-enfield-himalayan-410cc-scrambler-launch-pics-details/
 Segmentation Targeting Positioning
Royal Enfield has segmented itself as an Adventure and
Leisure bikers.
Though in small cities the market it is identify with the
social/status symbol.
Classic Chrome and Desert Storm are the example for
leisure bikers.
The New Himalayan 400cc is one of the example for the
Adventure bikers.

Source: http://archive.financialexpress.com/news/royal-enfield-launches-two-leisure-bikes/853851
http://auto.ndtv.com/news/royal-enfield-himalayan-production-ready-version-revealed-1264424
 Segmentation Targeting Positioning

Royal Enfield is focusing on the bikers in the age

gathering of 23-35 years old, these individuals are
working official or understudy or armed force and
police on account of metropolitan urban areas.
In district headquarters they are focusing on rich and
intense individuals.
Source:
http://qz.com/348552/how-royal-enfield-won-over-the-indian-motorcyclist-and-now-looks-unstoppable/
Segmentation Targeting Positioning

An handmade powerful
classic bike for Indian roads.
In metropolitan cities Royal
Enfield is positioned as an
adventure and leisure bikes.
In small cities and district
headquarters RE is a bike
which shows the symbol of
status of your power in
society.
 Perceptual Map
High Price

Low High
Quality Quality

Low Price
 PESTEL Analysis

Political factors include areas such as taxation

policy, law labor of law, transportation problems
and stable political environment. Furthermore,
governments have limited number of
motorcycles being sold in the country because
Indian currency changes everyday with the
comparison of UK pounds. The changes of
currency means the changes of price of products
and demand of product like Royal Enfield are
also changes which means recession are enter
Source: http://www.termpaperwarehouse.com/essay-on/Pestel-Analysis-Royal-Enfield/223513
into the market
 PESTEL Analysis

Environment elements incorporate biological

and ecological elements, for example, climate,
atmosphere conditions, and atmosphere
changes. Moreover, with the expanding of
mindfulness among the potential atmosphere
changes is influencing interest of item so
organization administrator takes snappy choice
by making new markets and reducing or crushing
existing business sector.
Source: http://www.termpaperwarehouse.com/essay-on/Pestel-Analysis-Royal-Enfield/223513
 PESTEL Analysis

Social elements incorporate the demographic

and social parts of the external environment.
These elements influence client needs and the
measure of potential markets. In the UK,
Consumers have a solid conviction in their local
brand products rather than other nation brand, for
example, Indian brand Royal Enfield. Royal Enfield
is moving worldwide which helps them to
understand the customer easily

Source: http://www.termpaperwarehouse.com/essay-on/Pestel-Analysis-Royal-Enfield/223513
 PESTEL Analysis

Technological elements incorporate some

mechanical things, for example, Research and
advancement activity, automation, technology and
the rate of mechanical changes. Nowadays,
individuals depend on GPS to seek an area they
need to go because of GPS had created by new
innovation. Royal Enfield has effectively included
Satellite Navigation System in Bullet 350 classic

Source: http://www.termpaperwarehouse.com/essay-on/Pestel-Analysis-Royal-Enfield/223513
 PESTEL Analysis

Economical elements incorporate efficient

stability, the rate of interest, currency rate.
These are variables which puts impacts on the
operation of business and accrucul choices. As
the currency and rate of interest changes, there
is no economical stability in the country.

Source: http://www.termpaperwarehouse.com/essay-on/Pestel-Analysis-Royal-Enfield/223513
 PESTEL Analysis

Legal elements incorporate livelihood law,

consumer law, and health and wellbeing law.
These variables put awful effects on the expense
of products, the interest of item and the
generation of product. The government has
proposed the entire organization working
environment must provide safety to the
employees. They cover issues, for example,
preparing, reporting and the proper of security
gear to ensure representative are safe.
Source: http://www.termpaperwarehouse.com/essay-on/Pestel-Analysis-Royal-Enfield/223513
Automobile Industry Analysis in India
Automobile industry generated 23.7millions vehicles in
FY2014-15
Growth of 8.68% over 2013
The vehicles business represent 7.1% of the nation's
(GDP)
The two wheelers fragment with 81% of the overall
industry is the pioneer of the Indian automobile market.
In FY 2014-15, automobile exports have 15% growth.

Source: http://www.ibef.org/industry/india-automobiles.aspx
 Porters Five Forces Model

Potential of new entrants:

The capital venture is colossal in bike industry since vast
plants and extensive apparatus with talented work and
great R&D group required for delivering bike. since every
organization in industry change the model progressing
premise to show separation among their rivals as a result
of this there are more learning and involvement in the
field. Company should show interest on promotions to
create brand loyalty. Two wheeler industry enjoys the
profits byhttp://www.efymag.com/admin/issuepdf/Two-wheelers_FFYApril-13.pdf
Source: low cost production.
http://gatton.uky.edu/Faculty/scott/mba603-605fall2009/industrystudy3.pdf
 Porters Five Forces Model

Competion in the industry:

Cruisers still record for the lion's offer of bike deals,
however, gearless bikes might tilt the equalization in the
coming a long time. The gearless bike market has been
developing rapidly. There is an expanding inclination for
Japanese brands, prompting a checked change in the bike
market. The local organizations can't confront the assault
of their multinational partners. Indeed, each fourth bike
sold in India is made either by Honda, Suzuki or Yamaha.
By November 2012, market share had grown from 15% to
25%.
Source: http://www.efymag.com/admin/issuepdf/Two-wheelers_FFYApril-13.pdf
http://gatton.uky.edu/Faculty/scott/mba603-605fall2009/industrystudy3.pdf
 Porters Five Forces Model

Bargaining Power of Suppiler:

As the selling units are high in the bike industry, since they
change their models so that they make a decent relationship
between their suppliers. Some of the basic components for every
bike commercial enterprises are steel, aluminum, tires and
tubes, these materials are accessible in abundant, which are
helpful for smooth production for their products.

Source: http://www.efymag.com/admin/issuepdf/Two-wheelers_FFYApril-13.pdf
http://gatton.uky.edu/Faculty/scott/mba603-605fall2009/industrystudy3.pdf
 Porters Five Forces Model

Bargaining Power of Consumer:

As there are only few two-wheeler companys so buyers has an
upper hand upon the suppliers, since they are fully aware of that
product and seller cost. Now-a-days customers are attracted
towards a single brand as the company gives good services after
the purchase. Sellers cant price their products at a high price as
the most of the customers are of middle class group.

Source: http://www.efymag.com/admin/issuepdf/Two-wheelers_FFYApril-13.pdf
http://gatton.uky.edu/Faculty/scott/mba603-605fall2009/industrystudy3.pdf
 Porters Five Forces Model

Threat of Substitute Products:

Bus transportation, auto transportation and Train etc are the
substitute products for two-wheeler industry, since there is a lot
of segment in buses which is are divided in normal and hi-tech
AC buses.

Source: http://www.efymag.com/admin/issuepdf/Two-wheelers_FFYApril-13.pdf
http://gatton.uky.edu/Faculty/scott/mba603-605fall2009/industrystudy3.pdf
 Triumph trusts it can catch
the top of the line in two-
Competitor Analysis wheeler with the cutting
edge variants of works of
art such as the Bonneville
and the Rocket. Bobby
Singh, who customizes
Enfields, said India's
dedication was overstated.
"I hand-make Enfields,
however, my motivation is
the Triumph. Individuals do
love Enfields, however,
lose hope since
administration and parts
are chaos," he said.
Source:
http://timesofindia.indiatimes.com/business/india-business/Royal-Enfield-races-past-Harley-Davidson-in-gl
 Bajaj launched KTM RC309
Competitor Analysis
in 2014 which figured out
to catch 15.85% in the first
year itself. KTM's attracted
youth in the urban areas.
Whatever remains of the
section fits in with the
Royal Enfield
heavyweights. RC390 gives
a sport bicycle body style
in this section which
generally has just road and
cruiser bicycles,
consequently offering
another recommendation
to draw in purchasers.
Source:
http://timesofindia.indiatimes.com/business/india-business/Royal-Enfield-races-past-Harley-Davidson-in-gl
 Marketing Mix
Place
Royal Enfield targets in two segments:
Tier 1 and 2: Metropolitan cities
Tier 3: Small cities or District Headquarters.
These two segments demand a premium position.
Therefore the showroom should be opened in a prime
place of the cities or district. Tier 3 cities like Patna,
Indore, etc.

Source:
http://www.forbes.com/sites/saritharai/2015/02/18/indias-vintage-royal-enfield-overtakes-harley
 Marketing Mix
Price
Price, obviously, matters, particularly as India's
recreation biking market grabs steam. Royal
Enfield bikes are mostly cost between 1Lakh to
2.2Lakhs in India, which is less than Harley
Davidson.

Source:
http://www.forbes.com/sites/saritharai/2015/02/18/indias-vintage-royal-enfield-overtakes-harley
 Marketing Mix
Product
Price, obviously, matters, particularly as India's
recreation biking market grabs steam. Royal
Enfield bikes are mostly cost between 1Lakh to
2.2Lakhs in India, which is less than Harley
Davidson.

Source
http://www.totalmotorcycle.com/motorcycles/2013models/2013-RoyalEnfield-Bullet500-B5-EFI.ht
Promotio Marketing Mix
ns
Royal Enfield promotes its brand in magazines like
Mens magazine, Adventure, The Beat and local
print media etc. It also promotes through
campaigns conducted by Royal Enfield like Trip,
Handcrafted in Chennai, and Leave home,
Himalayan odyssey and Fan clubs etc.
Promotion through films industry and social media
marketing
Source
http://royalenfield.com/re-world/cam
paigns/
 Strength & Weakness
Weaknes Strength
s: :
Bike weight can be a Royal Enfield parental
problem for few people company size and share
Not a sporty bike Gets a good results
High CC bikes will through campaigning
reduce the mileage Highly innovative
Well developed brand
name
Export bike to 31
countries
THANK
S!
Any questions?