MARKETING MANAGEMENT

PROJECT WORK
PROF. JOFFI THOMAS

Group Members-

Neelav Das – PGP/22/183

Maanvi Mudgil – PGP/22/193

Mukul Pradhan- PGP/22/213

Smita Kujur – PGP/22/223

Aayushi Bansal – PGP/22/403

Ashwini S – FPM/12/13/M

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Contents

Industry Insight………………………………………………………………………………………………………………………………….3

Royal Enfield……………………………………………………………………………………………………………………………………..4

Brand History…………………………………………………………………………………………………………………………………….4

Marketing Plan………………………………………………………………………………………………………………………………….5

Business Strategy………………………………………………………………………………………………………………………………6

Marketing Mix…………………………………………………………………………………………………………………………………10

Marketing Plan for 2018-19…………………………………………………………………………………………………………….13

Appendix…………………………………………………………………………………………………………………………………………14

References………………………………………………………………………………………………………………………………………18

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Industry Insight
The Indian (2W) industry enrolled sales in volumes of ~ 20 million units in 2017-18, a growth
of 15% over the earlier year FY 2016-17 was noted. Despite the losses suffered by bike and
scooter makers in India during the shift to BS-IV, the industry recovered well with a massive
growth percentage. Overall the two-wheeler industry saw a total sale of over 2.01 crore units
sold in the Indian domestic market and exports from the country also shot up by over 20
percent. Within the Two Wheelers segment, Scooters and Motorcycles grew by 19.90 percent
and 13.69 percent respectively, while the sales of mopeds declined by 3.48 percent in recently
concluded FY 2017-18 when compared to sales in April-March 2017.
Further breaking it up, motorcycles segment saw a total domestic sale of over 1.26 crore and
scooters contributed to 67.19 lakh units last year. As per SIAM report, India has 11 motorcycle
manufacturers and 7 scooter manufacturers. Motorcycles contributed to 62.4 percent of the
total sales, scooters increased their contribution to 33.27 percent and mopeds share declined to
4.25 percent.

Only motorcycle manufacturers Bajaj and Royal Enfield have reported a sale of 19.74 lakh
units and 8.01 lakh units respectively. While Bajaj Auto’s sales did drop by 1.3 percent YoY,
Royal Enfield grew by over 23 percent and recorded its most sales ever.

Outlook for two-wheeler industry in FY 2018-2019:

• Premium motorcycle segment is expected to outperform other sub-segments due to new
model launches; also, some product-level alterations in the economy segment by leading
players have led to a boost in sales of economy segment.
• ABS/CBS mandatory installation from April 2019 is expected to hike prices by Rs.500 -1000
for the economy, executive motorcycles and around Rs. 9,000 for premium motorcycles. SIAM
negligible impact on sales because of this on economy/executive segment; however premium
segment stands to get impacted.
• In FY19, Scooters are expected to grow at a sharp pace led by the increased disposable
incomes amidst positive economic factors coupled with increasing penetration in the rural
market and an increase in women participation.

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• CBS installation is expected to hike prices by Rs.500 -1000 for scooter models which
currently do not have CBS installed. We expect a negligible impact on scooter sales on account
of this as most models have CBS already installed.
• Multiple ownership (more than one two-wheeler in a household) because of convenience is
also showing increased traction.

ROYAL ENFIELD
Brand History
The brand ‘Royal Enfield’ dates back to 1890 when the name was first licensed by the company
Crown. The Enfield cycle company which was founded by R.W. Smith and Albert Eadie made
bicycles, motorcycles, lawnmowers and stationary engines. The name Royal was taken from
‘Royal small arms company’ with the trademark ‘Made like a gun’. In 1898, the first motorized
vehicle, a quadricycle was manufactured which was followed by the launch of tricycles. Enfield
entered motor sports for the first time in 1900 in a 1000-mile trial with one of its vehicles.
Enfield Cycle Company diversified into motorcycles in 1901 and was made into a separate
subsidiary. The first Royal Enfield bicycle was introduced in 1901 where engine was built in
the front wheel and through the belt the rear wheel was driven. The engine was moved inside
the frame for the first time in 1904 which became the standard for all the bikes. In 1909, a 2 ¼
HP V twin Motosacoche engine a small motorcycle was introduced by Enfield, followed by a
2 ¾ HP engine in 1911. The model which made Enfield become a household name was JAP
770 cc with various side car options. In 1913, Royal Enfield started using its own engines 425
cc V twin and 225 cc 2 stroke single. As the World War 1 broke out, Royal Enfield supplied
Royal Army with 6 HP motorcycles and post war they continued with the 2 stroke 225 cc
motorcycle production. This gave a historical connection for the brand which is being used till
date. In 1924, the first 4 stroke 350 cc vehicle was produced. Royal Enfield also introduced a
250 cc ladies’ model in 1926 which was first of its kind in motorbike segment. In 1930 500 cc
model J introduced with new lubrication system.
Madras motors partnered with Enfield Cycle Company to form Enfield of India in 1955 and
started assembling 350 cc bullet in Madras (Now Chennai). By 1962, all parts were
manufactured in India with license. With continuous innovation of motor vehicles, like light
weight bullet bicycles weighing 24 pounds, the last bicycle, a small wheeler was produced in
1965 and by 1970 Royal Enfield ceased to produce vehicles in Redditch, England. In 1994,
Enfield of India merged with Eicher Group, an automotive company in India after Eicher
acquired a major stake in Enfield. The Enfield Classic was launched in India in November 2009
for an ex-showroom price of 98,000 and is currently priced around 1.7 lakh. Royal Enfield
brand stands for its attributes of resilience, ruggedness and pedigree especially because of its
origins and historical importance. In spite of innovation, product engineering Enfield – Classic
is still positioned in the minds of customers as a brand which cuts across time and emotion with
a story to tell.

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 Marketing Plan 2018-19
Company
Royal Enfield has earmarked an investment of Rs. 800 crores in 2018-19 in all areas of its
business. The investment would be towards setting up additional production capacity at Vallam
Phase-2, completing construction of the Technology Centre in Chennai this year, investing
towards the development of new motorcycles to meet the upcoming regulations and to expand
Royal Enfield’s portfolio for its global markets.
Royal Enfield uses Social media platforms especially Facebook, Twitter, Youtube and
Instagram as a medium of communication. Royal Enfield majorly banks on its community to
endorse its brand and position it as the best bet for leisure motorcycling in India. For Royal
Enfield, the community acts as its brand manager. Royal Enfield does not as well do celebrity
endorsements and sponsorships and has limited to no traditional advertisements. The riding
events by Royal Enfield community act as promotional campaigns for the brand. The most
popular campaigns of 2018 are
1. The Himalayan Odyssey 2018
2. The Whiteout 2018
3. One Ride 2018
4. Escapade 2018
Rider Mania 2018
These campaigns are events organized by riders who own Royal Enfield who get together and
venture out to Himalayas, Spiti Valley, Goa, Bhutan and Uttarakhand. These campaigns are
advertised on Social media sites and on the company website. The 3.8 million active followers
on social media and company website see these campaigns as and when they are launched.
This helps the company to get instant feedback. The company is moving from an
engineering/product company to CRM (Customer Relationship Management) company where
every bike they sell tells a story to their customers. Rather than owning a brand product which
becomes obsolete after 6 months to one year due to new innovations, product variants which
replace the existing products, Royal Enfield ensures that every customer owns a piece of history
when they buy their brand. The 5 campaigns in 2018 along with other events which include
shorter rides are planned such that it attracts the middle-aged consumers who are looking for a
change, to explore and venture out from their daily lives.
Customer

• Currently Royal Enfield targets only 4% of the 2-wheeeler market in India. It has the potential
to grab a significant share when the economic status of the people improve and they introduce
more diverse range of products for the entire population.
• Among the upper idle class and upper class segment, it enjoys a good share and it will continue
to do so, unless any major customer complaints are found. The only problem of production
which leads to a high waiting time to buy is being worked on by the company.
Competition

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• Harley-Davidson plans to launch 200-500 cc motorcycles in India in two years’ time.
• Last year, Bajaj Auto and British motorcycle maker Triumph Motorcycles announced their
plans to make mid-capacity motorcycles. The Chakan, Pune-based bikemaker already has a tie-
up with Austrian bikemaker KTM.
• Earlier this month, BMW introduced two 313cc motorcycles—its smallest bikes ever-built—
under a technology partnership with TVS Motor Co to. develop sub-500cc bikes in India.
• Royal Enfield meanwhile continues to hold market dominance, fuelled by rising disposable
incomes. In 2016, Bajaj introduced Dominar to take on Royal Enfield but it could not make
any major impact.
Collaborators

• Royal Enfield runs operations across 50 countries till the year 2017-18. A network of over 500
multi brand outlets and 36 exclusive stores are their main channels.
• In the year 2015 company established a dealership and its headquarters for the North American
division at Milwaukee in Wisconsin. It started its retail operations in Indonesia in the year
2015, August. Royal Enfield has a strong distribution network that includes services of dealers
and stockists so that it reaches consumer markets easily. Its channel in India includes 394
dealership outlets spread over every Indian state and three Union territories.
Context

• In the new financial year, RE faces a number of challenges, including meeting the BS-VI
emission norms by March 2020, four years ahead of the originally planned deadline, and
introducing ABS on all our motorcycles before the regulation deadline of March 2019. BS VI
standards, which apply in April 2020, largely align emission limits for two-wheeled vehicles
with European standards. These standards were implemented with the goal of ensuring that
these vehicles will generally be no more polluting than BS VI four-wheeled gasoline passenger
vehicles.

Business strategy

Elements of Royal Enfield KTM Duke 390 Bajaj Dominar Comments

marketing Plan Classic 350 cc 400

Brand It sold 5,27,737 It sold 10667 It sold 22,707

Two of every
Performance Units from Jan Units from Jan Units from Jan
10 buyers of the
and Position in 2017 to Dec 2017. 2017 to Dec 2017 to Dec Dominar 400
Market 2017. 2017. used to own a
Royal Enfield
Royal Enfield as Dominar ate
Classic350 entered In June 2018, it In June 2018, it up 20 % of
into the top 10 sold 702 units. sold 1277 units. Market Share

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 selling two-
wheelers list
Two of every
10 buyers of the
Dominar 400
In June 2018, it
used to own a
sold 50426 units.
Royal Enfield.

Key Challenges: E- A They bike can India has a

opportunities mobility and differentiating speed up from 0 growing youth
and challenges electrification, factor for the to 100 kmph in population,
for the brand Consumers usage youth because just 8.24meaning
pattern changes of its stylish seconds. enhanced scope
from importance look and rarity Dominar as a and bigger
of owning a on the roads. 400-cc bike has markets for
vehicle to merely a very good bikes.
usage because of traction. They Youngsters are
constant shifts to Better can use this to shifting from
cities according to performance to utility centred
their jobs price ratio than to consumption
all of their Expanding centred
Opportunities:
similarly priced Dominar sales lifestyle.
Increase in the
rivals. into more
leisure biking
export markets.
culture in India

The challenge
is that it priced A challenge is
very highly for that it needs
the Indian more focus on
market. refinement.
Vibration in
Dominar will
not work in the
long term.

Current To attain It has a tagline Offers powerful Royal Enfield

Business leadership in the of “Ready to performance of stays the
Strategy and mid-size bike Race”. Hence, 400 cc, with heavyweight in
Marketing segment in which this shows contemporary mid-sized
objectives Royal Enfield is Bajaj plans to and features for segment bike
2018-19 consistently sell it as a sports contrarian with almost
growing month on bike. It is meant effect against 90% market
month by 6 – 7 for ardent riders royal Enfield. share, while
percent in 2018. who are looking Marketing Bajaj is in fray
objectives: to occupy the

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 To reach a sales for a thrilling target the niche rest of market
milestone of experience. segment owing to high
million vehicles a unoccupied by profitability of
India is the
year. Royal Enfield the segment.
biggest market
as it offers a
To increase the for KTM Duke.
potential
brand appeal in the
topline and
global market.
comfortable
profits

Current Marketing Strategy

Target Bike adventurers Bikers and Middle-aged Target segment

Segments and youth’s youth looking youth looking is more or less
belonging to a for lifestyle, for affordable same for all
middle-aged group status and thrill performance three bikes.
in one bike

Positioning For middle-aged For people For stylish The target

Statement executives and between the people looking group of all
bikers in Tier 1 ages of 20-40 for a hyper- three bikes
cities, and rich and years, the KTM riding revolves
powerful men in Duke is a bike experience, the around bike
rural areas, Royal that provides a Bajaj Dominar enthusiasts
Enfield Classic is a thrilling riding 400 is a bike looking for a
bike that provides experience as it which provides premium bike.
a way of life for comes with the modern, bulky
It addresses the
passionate bikers best tires on any and chiselled
experience
and a sense of Indian bike. built among all
connected to
status and power the bikes at the
biking rather
among all the other same price and
than utility.
bikes in this having a style
segment due to its statement.
rich legacy of style
and performance

Marketing Program

Product and Product mix: Product Product Royal Enfield

Brand Royal Enfield has Portfolio: KTM Portfolio: has created
Management 5 major variants Duke 125, Pulsar RS200, their own brand
KTM RC 125, CT 100B, through 20-30
Himalayan,
KTM 390 Avenger 150 years of
Continental GT,
Duke, RC 390 street. Brand: continuous
Thunderbird,
etc launched production and
Classic and Bullet.
several ad will continue to

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 Brand: Royal Brand: campaigns to attract the
Enfield is only into Manufacturer increase its customers.
motorcycle of bikes. Uses brand visibility. KTM Duke and
segment and no print and social These are Dominar 400
brand extensions. media to displayed via are new
promote its digital, print entrants in the
products via and visual market.
magazines, medium.
Twitter and
YouTube.

Promotions: RE only uses Promotions via Organized All three of

promotions mix online space like online channels online them majorly
Facebook and like Youtube. campaign of occupy the
Youtube. “Haathi Mat Online space of
Paalo” with a Facebook and
Advertisement series of ads on YouTube to
Events for the “Life begins youtube. promote the
biker community beyond the brand.
are organized narrow and
Another
straight”. They invited 4
popular method
Royal Enfield
of marketing is
Organizing events riders on a 1300
organizing
like Himalayan Plans to bring km on a
Bike Riding
Odyssey, Tour of RC Cup Dominar for
events.
Nepal, Ride as one Championship promotions.
However,
etc. to promote the to India.
Dominar hasn’t
Royal Enfield
done much in
brand.
that area.

Place: Channel In 2017, it had 675 Outlet count of Availability Royal Enfield
Share dealers across the 500 in FY 18 across 80-100 has a matured
country and the from previously cities via 200 dealership and
plan was to expand 325. Bajaj auto they have
to 800 dealers dealerships. continued to
covering about expand over the
They are
600 towns. years.
looking to set a
reliable service However, KTM
support by and Dominar
upgrading all can leverage
their the well-
dealerships, established
customer Bajaj

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 touchpoints and dealership to
sales and reach out to
service outlets larger audience.
and training for
technicians and
service for
dominar 400.

Price Strategy Royal Enfield The price of The Dominar The pricing of
followed status KTM starts at 400 now costs all three brands
quo pricing but Rs.2.25 lakhs Rs 1,42,108 for are in the range
since 2014 standard of 1-2 lakhs.
repositioned itself version and Rs
It’s an
by decreasing the 1,56,270 for
appropriate
price dramatically ABS version.
range for
to increase the
It is priced not people looking
sales and become a
too high and for mid-size
market leader in
bikes having a
premium segment.
premium feel.

Future Endowing with Plans to venture A new All brands plan

Prospects by modern features into 500-600 cc Scrambler to expand their
the brand like LED lighting, category. styled version footing above
ABS, and better of the Dominar 500 cc
cycle parts, apart is likely to be segments and
from a BS-VI- launched also modernize
compliant engine. the features.

Marketing Mix of Royal Enfield

Product
Royal Enfield is associated with manufacturing and marketing of motorcycles as it deals in
the automobile sector. It started its operations as a manufacturer of motorcycles for Indian
Army. It is also involved in producing lawnmowers, stationary engines, bicycles and rifles.
Some of its well-known models are as follows-

• Standard Street

• Bullet Electra 5S

• Bullet 350

• Bullet Machismo 500

• Retro Street

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 • 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

Place
Royal Enfield is an Indian company with its headquarters base at Chennai in Tamil Nadu. It
has spread its product presence to India as well as several international markets in more than
fifty countries like Spain, Switzerland, Singapore, Netherlands, Russia, Malaysia, Korea,
Canada, Brazil, France, Germany, Italy, United Kingdom, Japan, Argentina, Australia and the
United States. At its onset company imported kits for 350cc bikes from the United Kingdom
and assembled them in its plant at Chennai. A new manufacturing plant was opened at
Oragadam in Chennai by the year 2013 and its factory located at Tiruvottiyur became a
secondary production plant that continued with its manufacturing of several models and
engines.
In the year 2015 company established a dealership and its headquarters for the North American
division at Milwaukee in Wisconsin. It started its retail operations in Indonesia in the year
2015, August. Royal Enfield has a strong distribution network that includes services
of dealers and stockists so that it reaches consumer markets easily. Its channel in India includes
394 dealership outlets spread over every Indian state and three Union territories.
Price
Royal Enfield has the distinction of being an iconic company as it is one of the oldest in the
field of two-wheelers. It belongs to the luxury segment and has become a status symbol to
motorcycle lovers. Royal Enfield has targeted bike adventurers and youth’s belonging to a
middle-aged group as its target customers that believe in quality over pricing at any given time.
It has adopted a premium pricing policy for its high-quality products. The company offers a

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powerful and stylish product with an established and high-profile brand name and hence its
target customers do not hesitate in making a purchase irrespective of high prices.
Promotion
Royal Enfield has the distinction of being the first two-wheeler manufacturing company to
obtain WVTA certificate for meeting norms and standards set up by European Community. It
has adopted several promotional policies to market its products successfully in the consumer
market. The company has launched innovative ad campaigns with help of electronic and print
media. Its ads are viewed via television, magazines, newspapers and billboards. Royal Enfield
has also launched brand awareness campaigns at social media portals
like Facebook, Twitter and YouTube. It takes part in several shows to increase its brand
visibility.

It revealed its custom bikes in Biarritz, France at Wheels and Waves custom bike show. Royal
Enfield has been a recipient of several accolades and awards in recognition of its works. It won
Business Standard Best Company of the Year 2015 and has even been hailed by previous
President Barack Obama as one of the best bikes he had come across. One of its popular taglines
is Made like a gun, goes like a bullet.

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Marketing Plan for 2019-2020

Royal Enfield is doing good business in the recent years. The situation analysis will be same as that of
the previous year. Also, the target segment will be more or less the same. The changes which it could
bring are in its 4 P strategy. Some areas it could look forward to in the next year could be as follows:

• Royal Enfield has plans to expand its business. It should also venture more into the Asian
markets as there exists a large population in this region which uses motorcycles and scooters
over cars due to small streets. There is a large potential in those areas. According to a report
by Euromonitor, by 2023, Asia is set to overtake North America as the region with the highest
total consumer spending.
• A lot of new models are planned to be introduced by the competitors like Bajaj, Harley
Davidson and TVS Motors. Royal Enfield must work on their R&D to stay ahead of the
competitors and provide the smoothest ride and superior features. Just riding on the idea of
freedom will die out eventually and the company must mix comfort with technical superiority
to keep its growth upward.
• The company can keep increasing its dealerships across the country and also foray into
partnerships with companies in different countries to sell their bikes more globally. Also, it
could sell its bikes directly from the factory by allowing users to place online orders after
coming to the store to see the product. The bikes can be delivered
• The EV norms will still be at its full force and everyone will be talking about electric bikes.
Managing the legacy of the Royal Enfield bikes and the environment sustainability factor will
be a big challenge. So, the focus must be on ‘growing green’.
• Royal Enfield could sponsor some sporting event like the World Cup to increase their global
footprint. It can also attract the pre-job population as they are the people who have the time
to watch TV continuously. They can be enticed by the message of Royal Enfield bikes. After
joining a job, they might even use their salary to buy the bikes.

Last to last year, the company had a growth of 32%. This year it can expect to grow at least by 20% as
Royal Enfield's sales volume grew by 50 per cent in each of the past five years. To meet rising demand,
the company has set up a new plant near Oragadam, which will increase production capacity to
900,000 by 2018. So, we can say that by next year the yearly sales can be at least 70, 000 units. The
profits may reduce for the short term due to the investments in the plants and commercials but over
time, it will lead to the consolidation of the company.

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Appendix

14
15
16
17
References

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royal-enfields-market-share/588327/

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