Name: Deep Shah

Class: TYBCOM
Division: D
Roll No.: 99
Sap No.: 40311170648
Topic: Marketing Aspect of Royal
Enfield
INTRODUCTION

Royal Enfield was a brand name under which The Enfield Cycle Company
Limited of Redditch, Worcestershire sold motorcycles, bicycles, lawnmowers and stati
onary engines which they had manufactured. Enfield Cycle Company also used the
brand name Enfield without Royal.

The first Royal Enfield motorcycle was built in 1901. The Enfield Cycle Company is
responsible for the design and original production of the Royal Enfield Bullet, the
longest-lived motorcycle design in history.

Enfield's remaining motorcycle business became part of Norton Villiers in 1967 with
the business closing in 1978.

History

George Townsend set up a business in 1851 in Redditch making sewing needles. In

1882 his son, also named George, started making components for cycle
manufacturers including saddles and forks. By 1886 complete bicycles were being
sold under the names Townsend and Ecossaise. This business suffered a financial
collapse in 1891. Albert Eadie, sales manager of Birmingham's Perry & Co Ltd, pen
makers who had begun to supply components for cycles, and Robert Walker Smith,
an engineer from D. Rudge & Co, were chosen by Townsend's bankers to run the
business. Then, in 1892, the firm was re-incorporated and named Eadie
Manufacturing Company Limited; it was based in Snow Hill, Birmingham. Later, in
1907, after serious losses from their newly floated Enfield Autocar business, Eadie
Manufacturing and its pedal-cycle component business was absorbed by Birmingham
Small Arms Company (BSA). Years later, the BSA chairman was to tell shareholders
that the acquisition had "done wonders for the cycle department". Eadie still retained a
separate identity when Raleigh bought BSA's cycle interests in 1957.

ENFIELD

Royal Enfield is an Indian motorcycle company which has created a huge impact in
the automobile industry. Royal Enfield has been able to create an image in the market
such that by its name only every consumer creates an image of a luxurious, strong
motorcycle. Royal Enfield have been manufacturing the classic automobiles like
Bullet, Electra, and Thunderbird series from 1909. Royal Enfield is also distinctive in
its logo with a cannon and a tagline of “Made like a gun”. This logo shows the heritage
of the Enfield Company. Vehicles manufactured under Royal Enfield are prevalent for
tough looks, incomparable dependability and enormous power.

Eadie had won contracts to supply precision parts for fire arms to the government's
long-established Royal Small Arms Factory at Enfield, Middlesex, now the London
Borough of Enfield with its offshoot in Sparkbrook and had assumed the brand name
Royal Enfield.In 1896 they also incorporated a new subsidiary company, The New
Enfield Cycle Company Limited,to handle much of the cycle work and in 1897 Enfield
making complete cycles as well parts for other assemblers took all the cycle assembly
work from Eadie.

Enfield diversified into motor cycles, 1901 and motor cars, 1902. The motor
department was put into a separate subsidiary, Enfield Autocar Company Limited
incorporated in 1906 and established in new works at Hunt End, Redditch. However,
Enfield Autocar after just 19 months reported a substantial loss and, aside from Eadie
himself, shareholders were unwilling to provide more capital so in early 1907 Eadie
sold his control of Eadie Manufacturing to BSA.

In 1955, Enfield Cycle Company partnered with Madras Motors in India in

forming Enfield of India, based in Chennai, and started assembling the 350cc Royal
Enfield Bullet motorcycle in Madras. The first machines were assembled from
components imported from England. Starting in 1957, Enfield of India acquired the
machines necessary to build components in India, and by 1962 all components were
made in India.

MARKETING MIX

Marketing Mix of Royal Enfield analyses the brand/company which covers 4Ps
(Product, Price, Place, Promotion) and explains the Royal Enfield marketing strategy.
The article elaborates the pricing, advertising & distribution strategies used by the
company.
Let us start the Royal Enfield Marketing Mix:

Product:

The product strategy and mix in Royal Enfield marketing strategy can be explained as
follows:

Royal Enfield is one the leading global motorcycle brands based out of India. Royal
Enfield which started making bikes for Indian army has a concentrated product
portfolio in its marketing mix and manufactured motorbikes are:

Standard Street

 Bullet Electra 5S
 Bullet 350
 Bullet Machismo 500

Retro Street

 Classic 500
 Classic Battle Green
 Classic Chrome
 Classic Squadron Blue
 Classic 350
 Classic Desert Storm

Cruiser

 Thunderbird 500
 Thunderbird 300

Café Racer

 Continental GT
Royal Enfield Himalayan

Royal Enfield products are also known for their versatility according to consumers
demand like adjusting the gears from ideal to left. This helps them in attracting new
customers. They also utilize the strength of engine as their own strength to retain
current customers. As the products are not only driven by innovations but more with
an understanding of users, market and competitors so now Royal Enfield is even
changing from a manufacturing approach to become more consumer oriented. Royal
Enfield likes to make changes, implement new things in bikes without taking their
initial identity.

Price:

Below is the pricing strategy in Royal Enfield marketing strategy:

Royal Enfield comes up with a bike which is more demanded by the younger
generations. So Royal Enfield focused on the bike explorers and moderately aged
youths who love to catch up with the new hard style bikes and focuses more on quality
then the price. So with this Royal Enfield follows a premium pricing strategy in its
marketing mix by delivering its customers a high quality products which are worth the
value. With the goal as less of more Royal Enfield manufacturers less number of
models but each one of them is of high quality which helps them in offering a capable
and stylish product under its brand to their users who whole heartedly accept the
product regardless of premium price. After the GST prices Royal Enfield has adopted
a different strategy by further diminishing the prices of its least popular bikes.

Place:

Following is the distribution strategy of Royal Enfield:

Royal Enfield whose central manufacturing plant is based in Chennai is now operating
in more than 50 nations all over the world. Currently Royal Enfield’s distributors who
are working for different exports markets themselves appoint dealers in various
locations who finally run the multi brand outlets. With a new assembling plant opened
in Chennai, Royal Enfield is able to tackle the problems of product shortage and they
easily export the products to all the nations through ship route. Even after this there
are few nations where shipping is not that easy like Brazil due to various policies so
Royal Enfield is looking to open local assembly and manufacturing plants. Royal
Enfield has a vast and strong distribution network which incorporates the goals of
merchants and dealers so that customer needs are satisfied without any issue. Royal
Enfield targets both urban and rural consumers in India with its more than 350
dealership outlets.

However urban consumers are favoured a little more seeing the past purchase
records and youngster’s preference who are their main consumers.

Promotion:
The promotional and advertising strategy in the Royal Enfield marketing strategy is as
follows:

Royal Enfield has always focused on a holistic and complete marketing approach. To
increase the volume of bikes sold, Royal Enfield has decided to focuses more on the
consumers need rather than engineering. They launch what consumer wanted so as
to increase the visibility of their products to a larger audience. Seeing that their prime
consumers are middle aged man who are more inclined to the digital technology so
Royal Enfield focuses more on digital marketing i.e. by launching various online
campaigns on different social media sites like Facebook, twitter, Instagram etc. It also
participates in various shows or deal with various TV series in order to increase
visibility of products. Royal Enfield’s promotions are also seen by traditional way that
is through TV, newspaper, magazines, flyers, boards etc. Hence, this concludes the
Royal Enfield marketing mix.