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Faculty Of Business Management
Report on PESTEL ANALYSYS ON Royal Enfield submitted to
MARWADI UNIVERSITY
Master of Business Administration
By
Shubham Anilbhai Chavda
Enrollment No: 91700323011 Semester: 1st
Subject: B.G.G.E. Subject Code: 03BM0110
Guidance by: Dr. Suneet Saxena
Rajkot-Morbi Highway Road, Gauridad, Rajkot, Gujarat. 360003
Tel. (0281) – 2923112, 2924155/56 www.marwadieducation.edu.in
Introduction
Royal Enfield was a brand name under which The Enfield Cycle Company
Limited of Redditch, Worcestershire sold motorcycles, bicycles, lawnmowers and
stationary 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 and that
business closed in 1978. A former subsidiary continues to manufacture Royal Enfield
motorcycles in India.
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 Ecossais. 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 and in 1892 a new company was
incorporated named Eadie Manufacturing Company Limited based in Snow Hill,
Birmingham.In turn in 1907 after serious losses in their newly floated Enfield Autocar
business Eadie Manufacturing and its pedal cycle component business was absorbed
by BSA. Years later the BSA chairman was to tell shareholders 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
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.[citation needed] In 1896 they also incorporated a new subsidiary company, The
New Enfield Cycle Company Limited,[note 1] 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.[10] 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. Albert Eadie and Robert Walker Smith had been
appointed directors of BSA before the proposed sale ha been put to shareholders. The
new combined BSA and Eadie business manufactured "military and sporting rifles,
(pedal) cycle and cycle components, motor-cars etc. BSA and Eadie cycle specialities".
But there were still minority Eadie shareholders alongside BSA in 1957.
The business of Enfield Autocar, that is to say the plant and stock, was sold to
Birmingham's Alldays & Onions Pneumatic Engineering. Enfield Cycle Company took
over the Hunt End premises.
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.
Frank Walker Smith (1888-1962), eldest son of Robert Walker Smith, joined Enfield
Cycle Company in 1909. Appointed joint (with his father) managing director in 1914 he
took over the full responsibility when his father died in 1933. After his death Enfield was
bought by investors E & H P Smith who sold Enfield for £82,500 to Norton Villiers in
1967. While Norton Villiers acquired 33 per cent of Enfield India the assets of Enfield's
diesel engine division and pedal cycle and spares divisions were not picked up.
Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967. The
company's last new bicycle was the 'Revelation' small wheeler, released in
1965. Production of motorcycles ceased in 1970 and the original Redditch,
Worcestershire-based company was dissolved in 1971.
Enfield of India continued producing the 'Bullet', and began branding its motorcycles
'Royal Enfield' in 1999. A lawsuit over the use of 'Royal', brought by trademark owner
David Holder, was judged in favour of Enfield of India, who now produce motorcycles
under the Royal Enfield name.
The Enfield Cycle Company Limited
Former type Public Listed Company
Industry Motorcycles, bicycles, lawnmowers,
cars
Successor Royal Enfield (India)
Founded 1901
Founder Albert Eadie and Robert Walker
Smith
Defunct 1971
Headquarters Redditch, Worcestershire
Key people Albert Eadie
Robert Walker Smith
Frank Walker Smith
Products Royal Enfield Clipper,
Crusader, Bullet,
Interceptor, WD/RE, Super Meteor
Website www.royalenfield.com
Products
Royal Enfield Quadricycle
By 1899, Royal Enfield were producing a quadricycle – a bicycle modified by adding a
wrap-around four-wheeled frame, retaining a rear rider-saddle with handlebars – having a
front-mounted passenger seat, driven by a rear-mounted De Dion engine.
After experimenting with a heavy bicycle frame fitted with a Minerva engine clamped to
the front downtube, Enfield built their first motorcyclein 1901 with a 239 cc engine.
1907 Enfield 15
A light car was introduced in 1903 powered by either a French Ader V-twin or De Dion
single cylinder engine. In 1906 car production was transferred to a new company, the
Enfield Autocar Co Ltd with premises in Hunt End, Redditch. The independent company
only lasted until 1908 when it was purchased by Alldays & Onions.
In 1907, Enfield merged with the Alldays & Onions Pneumatic Engineering Co. of
Birmingham, and began manufacturing the Enfield-Allday automobile.
By 1910, Royal Enfield was using 344 cc Swiss Motosacoche V-Twin engines, or large-
displacement JAP and Vickers-Wolseley engines.
1913 Enfield 425cc
In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a 770 cc
V-twin JAP engine which was raced successfully in the Isle of Man TT and
at Brooklands.
First World War (1911–1921)
In 1914 Enfield supplied large numbers of motorcycles to the British War Department
and also won a motorcycle contract for the Imperial Russian Government. Enfield used its
own 225 cc two-stroke single and 425 cc V-twin engines. They also produced an 8 hp
motorcycle sidecar model fitted with a Vickers machine gun.
Inter-war years (1921–1939)
1923 Royal Enfield 225cc
In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield
four-stroke 350 cc single using a Prestwich Industries engine. In 1928, Royal Enfield
began using the bulbous 'saddle' tanks and centre-spring girder front forks, one of the first
companies to do so. Even though it was trading at a loss in the depression years of the
1930s, the company was able to rely on reserves to keep going. In 1931, Albert Eddie,
one of the founders of the company, died and his partner R.W. Smith died soon
afterwards in 1933.
Second World War (1939–1945)
Royal Enfield 250 cc, type 11F
During World War II, The Enfield Cycle Company was called upon by the British
authorities to develop and manufacture military motorcycles. The models produced for
the military were the WD/C 350 cc sidevalve, WD/CO 350 cc OHV, WD/D 250 cc SV,
WD/G 350 cc OHV and WD/L 570 cc SV. One of the most well-known Enfields was the
[ designed to be dropped by parachute with airborne troops.
In order to establish a facility not vulnerable to the wartime bombing of the Midlands, an
underground factory was set up, starting in 1942, in a disused "Bath Stone" quarry at
Westwood, near Bradford-on-Avon, Wiltshire. Many staff were transferred from
Redditch and an estate of "prefabs" was built in Westwood to house them.
As well as motorcycle manufacture, it built other equipment for the war effort such as
mechanical "predictors" for anti-aircraft gunnery: the manufacture of such high precision
equipment was helped by the constant temperature underground. After the war the factory
continued, concentrating on engine manufacture and high precision machining. After
production of Royal Enfield motorcycles ceased, the precision engineering activities
continued until the final demise of the company.
Postwar Model G and Model J and ex-military C and CO (1946–1954)
Postwar, Royal Enfield resumed production of the single cylinder ohv 350cc model G and
500cc Model J, with rigid rear frame and telescopic front forks. These were ride-to-work
basic models, in a world hungry for transport. A large number of factory reconditioned
ex-military sv Model C and ohv Model CO singles were also offered for sale, as they
were sold off as surplus by various military services.
Royal Enfield in Madrid, Spain
In 1948, a groundbreaking development in the form of rear suspension springing was
developed, initially for competition model "trials" models (modern enduro type
machines), but this was soon offered on the roadgoing Model Bullet 350cc, a single
cylinder OHV. This was a very popular seller, offering a comfortable ride. A 500cc
version appeared shortly after. A mid 1950s version of the Bullet manufacturing rights
and jigs, dies and tools was sold to India for manufacture there, and where developed
versions continue to this day.
500 Twins, Meteors, Super Meteors and Constellations 1949-1963
In 1949, Royal Enfields version of the now popular selling parallel twins appeared. This
500cc version was the forerunner of a range of Royal Enfield Meteors, 700cc Super
Meteors and 700cc Constellations. Offering good performance at modest cost, these sold
widely, if somewhat quietly in reputation. The 700cc Royal Enfield Constellation Twin
has been described as the first Superbike.
250 cc models
Royal Enfield Crusader
The 250cc class was important in the UK as it was the largest engine which a 'learner'
could ride without passing a test. In the late 1950s and early 1960s, Royal Enfield
produced a number of 250 cc machines, including a racer, the 'GP' and a Scrambler, the
'Moto-X', which used a modified Crusader frame, leading link forks and a Villiers
Starmaker engine. The Clipper was a base-model tourer with the biggest-seller being the
Crusader, a 248 cc pushrod OHV single producing 18 bhp (13 kW).
RE GT with flyscreen
RE GT with Avon Speed flow nosecone fairing
In 1965, a 21 bhp (16 kW) variant called the Continental GT, with red GRP tank, five-
speed gearbox (which was also an option on the Crusader), clip-on handlebars, rearset
footrests, swept pipe and hump-backed seat was launched. It sold well with its race-
styling including a fly-screen resembling a race number plate which doubled as a front
number plate mount.
RE Turbo Twin
The Avon 'Speedflow' full sports fairing was available as an extra in complementary
factory colours of red and white.
Other variants were the Olympic and 250 Super 5, notable for use of leading-link front
suspension (all the other 250 road models had conventional telescopic forks) and the 250
'Turbo Twin', fitted with the Villiers 247 cc twin cylinder two-stroke engine.
The Royal Enfield GP production-volume racer was first raced in the Manx Grand Prix in
September, 1964. Developed in conjunction with Royal Enfield Racing Manager Geoff
Duke the first public appearance was at Earls Court Show in November, 1964. Using a
duplex-tube frame, leading link forks and one-piece tank and seat unit, the 250cc two-
stroke single engine was similar to other small capacity race machines offered from
rivals Greeves, Cotton, DMW and particularly Villiers, which provided the engines for
these marques and many other manufacturers and bike-builders including the 'Starmaker'
competition engine used for the Scorpion racer and Sprite scrambler.
Royal Enfield Interceptor
Royal Enfield Interceptor motorcycle
Main article: Royal Enfield Interceptor
During the onslaught of the Japanese motorcycle manufacturers in the late sixties and
early seventies, the English factories made a final attempt with the 692cc Interceptor in
1960 [not in citation given] –1961 [not in citation given] followed in 1962–1968 [not in
citation given] by the 736cc Series I and Series II Interceptors. Made largely for the US
market, it sported lots of chrome and strong performance, completing the quarter mile in
less than 13 seconds at speeds well above 175 km/h (105 mph). It became very popular in
the US, but the classic mistake of not being able to supply this demand added to the
demise of this last English-made Royal Enfield.
The Redditch factory ceased production in 1967 and the Bradford-on-Avon factory closed
in 1970, which meant the end of the British Royal Enfield. After the factory closed a little
over two hundred Series II Interceptor engines were stranded at the dock in 1970. These
engines had been on their way to Floyd Clymer in the US; but Clymer had just died and
his export agents, Mitchell's of Birmingham, were left to dispose of the engines. They
approached the Rickman brothers for a frame. The main problem of the Rickman brothers
had always been engine supplies, so a limited run of Rickman Interceptors were promptly
built.
As far as the motorcycle brand goes, though, it would appear that Royal Enfield is the
only motorcycle brand to span three centuries, and still going, with continuous
production. A few of the original Redditch factory buildings remain (2009) and are part
of the Enfield Industrial Estate.
Enfield Indians
From 1955 to 1959, Royal Enfields were painted red, and marketed in the USA as Indian
Motorcycles by the Brockhouse Corporation, who had control of the Indian Sales
Corporation (and therefore Indian Motorcycles) and had stopped manufacturing all
American Indians in the Springfield factory in 1953. But Americans were not impressed
by the badge engineering and the marketing agreement ended in 1960, and from 1961,
Royal Enfields were available in the US under their own name. The largest Enfield
'Indian' was a 700 cc twin named the Chief, like its American predecessors.
Enfield India (since 1949)
Enfield India 350cc- Madras
Royal Enfield motorcycles had been sold in India since 1949. In 1955, the Indian
government looked for a suitable motorcycle for its police and army, for use patrolling
the country's border. The Bullet was chosen as the most suitable bike for the job. The
Indian government ordered 800 350-cc model Bullets, an enormous order for the time. In
1955, the Redditch company joined Madras Motors in India in forming "Enfield India" to
assemble, under licence, the 350 cc Royal Enfield Bullet motorcycle in Madras (now
called Chennai). Under Indian law, Madras Motors owned the majority (over 50%) of
shares in the company. In 1957 tooling equipment was sold to Enfield India so that they
could manufacture components.
Enfield of India continued producing the 'Bullet' long after the UK factory's bankruptcy,
and changed its branding to 'Royal Enfield' in 1999. The 'Royal Enfield' name and rights
had been purchased by Matt Holder of Aerco Jigs and Tools, at the bankruptcy sale in
1967. The business passed on to his son, David Holder, of the Velocette Motorcycle
Company of Birmingham, UK. The Holder family has produced spares for Royal Enfield
motorcycles continuously from 1967 through to the present,[disputed – discuss] but did
not trade under the Royal Enfield name. While David Holder objected to the use of 'Royal
Enfield' by Enfield of India, a UK court ruled in favour of the Indian company, who have
now assumed the trademark, and produce motorcycles as Royal Enfield.
Royal Enfield India manufactures and sells in India, and also exports to Europe as well as
the Americas, South Africa and Australia. They recently entered the Indonesian market.
Recently Royal Enfield has undergone a major retooling particularly in the engine
department going from carburated cast-iron engines to twin spark unit construction
engines on all its models, with Electronic Fuel Injection (EFI) available on their flagship
500 cc model. The major redesign has sparked such a demand for the bikes that Royal
Enfield have started double shifts at their plants.
In August 2015, Royal Enfield Motors announced it is establishing its North American
headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three
bikes, the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this
engine size represents an underserved market. The dealership will be Royal Enfield's first
company-owned store in the U.S., according to Rod Copes, president of Royal Enfield
North America. The company wants to establish about 100 dealerships in American cities
starting with Milwaukee.
Royal Enfield Classic 500 in Belgium
"I live here, so I am biased. But in my mind, Milwaukee is kind of the center of
motorcycling in the United States," said Copes, a former Harley-Davidson executive.
"We view this as kind of our first flagship dealership," he added.
On November 9th, 2017 Royal Enfield revealed their new 650 twins, the Interceptor and
Continental GT 650.
PESTEL analysis
PESTLE analysis of the motor bikes industry in UK PESTLE analysis{Palmer Clive }of
motorbike industry sector investigates the important factors that are affecting the industry
and influencing the companies operating in that sector. It is also perfect tools for mangers
and policy makers of motorbike industry,helping them to analyzing the factors which are
affecting while driving their industry to different countries of the world. Throughout the
last few year,the acronym PESTLE has been suffering a numbers of changes,but it seem
to be the most important factor which is helpful for decision-makers of royal-Enfield to
analysis the current situation of the that country where industry expands.There are six
factors which are influencing PESTLE analysis. Political factors include areas such as
taxation policy, law labor of law,transportation problems and stable political
environment. Furthermore, governments have great influence proposal that limit 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 into the market so UK government take some steps to solved the this
problem.Royal Enfield sales would affect by this issue.Furthermore UK consumers pay
higher pre-tax prices for Motorbikes than anyone else in the Europe.Government is keen
to attract foreign.
PESTEL Analysis in India:
A Cult Motorcycle From India Takes On the World The Royal Enfield Motors factory in
Chennai, India. The brand sold nearly 175,000 motorcycles in 2013. By SAMANTH
SUBRAMANIAN Published: January 3, 2014 NEW DELHI, India — The Royal Enfield
Bullet, often described as the oldest continuously produced motorcycle in the world, is a
cult product for enthusiasts who love it for its vintage feel as much as for the thrum of its
engine. Muscular and pliant, the Bullet — an Indian-made avatar of an old British brand
— has found renewed popularity over the last few years, as leisure motorcycling in India
has blossomed. Its manufacturer, Royal Enfield Motors, sold almost 175,000 motorcycles
—Bullets as well as three other brands — in 2013. The company is now looking to push
harder into British and American markets, hoping to follow in the wake of other Indian
motor vehicle manufacturers that have competed hard with overseas brands even as their
peers in other industries have struggled. Royal Enfield’s newest model, a midsize “cafe
racer” called the Continental GT, was introduced at an elaborate event in London in
September. “It’s the first bike that we’ve developed keeping the world market in mind,”
said Siddhartha Lal, who is credited with turning Royal Enfield around. Mr. Lal, age 40,
is the chief executive of Eicher Motors, a manufacturer of buses, trucks and tractors that
owns Royal Enfield. Uncommonly for an Indian executive, he sports sideburns and wears
jeans.
Royal Enfield in India:
Royal Enfield is an Indian motorcycle manufacturing company with factories in Chennai,
India. Originally a British motorcycle company, Royal Enfield and indigenous Madras
Motors, it is now a subsidiary of Eicher Motors Limited, an Indian automaker. The
company makes the Royal Enfield Bullet, and other single-
cylinder motorcycles. Established in 1893, Royal Enfield is the oldest motorcycle brand
in the world still in production, with the Bullet model enjoying the longest motorcycle
production run of all time.
2014 redesign of Royal Enfield logo
Type Public
Industry Automotive
Predecessor Royal Enfield (UK)
Founded 1955 as Enfield India
Headquarters Chennai, India
Key people Siddhartha Lal (CEO)
Rudratej Singh (President)
Products List of Royal Enfield
motorcycles
Production
output
450,000 units (2016)
302,591 units (2014)
178,120 units (2013)
Parent Eicher Motors
Website Royal Enfield
History
The Indian government looked for a suitable motorcycle for its police and army, for
patrolling the country's border. The Royal Enfield Bullet was chosen as the most suitable
bike for the job. The Indian government ordered 800 350 cc model Bullets. In 1955,
the Redditch company partnered with Madras Motors in India to form 'Enfield India' to
assemble, under licence, the 350 cc Royal Enfield Bullet motorcycle in Madras (now
called Chennai). The tooling was sold to Enfield India so that they could manufacture
components. By 1962, all components were made in India. The Indian Enfield uses the
1960 engine (with metric bearing sizes), Royal Enfield still makes an essentially similar
bike in the 350 cc and 500 cc models, along with several different models for different
market segments.
Royal Enfield was a brand of the Enfield Cycle Company, a British manufacturing firm.
It started in India for the Indian Army 350 cc bikes were imported in kits from the UK
and assembled in Chennai. After a few years, the company started producing the 500 cc
Bullet.
In 1990, Royal Enfield collaborated with the Eicher Group, an automotive company in
India, and merged with it in 1994. Apart from bikes, Eicher Group is involved in the
production and sales of tractors, commercial vehicles, and automotive gears. Although
Royal Enfield experienced difficulties in the 1990s, and ceased motorcycle production at
their Jaipur factory in 2002, by 2013 the company opened a new primary factory in the
Chennai suburb of Oragadam on the strength of increased demand for its motorcycles.
The original factory at Tiruvottiyur became secondary, and continues to produce engines
and some motorcycle models. In 2014 Royal Enfield appointed Pierre Terblanche as the
head of new product design.
In January 2015, the company announced the appointment of Rudratej ‘Rudy’ Singh as
President of Royal Enfield. Singh was previously a Vice President of Unilever in
Singapore. Royal Enfield announced its first takeover of another company in May, 2015
with the purchase of a UK motorcycle design and manufacturing firm, Harris
Performance Products, that had previously developed the chassis of the Royal Enfield
Continental GT Cafe Racer.
Royal Enfield currently sells motorcycles in more than 50 countries. Royal Enfield
surpassed Harley-Davidson in global sales in 2015, and received an acknowledgment
from US President Barack Obama as the guest of honor at the 2015 Delhi Republic Day
parade. "I saw the Republic Day daredevils on Royal Enfield motorcycles," Obama said,
adding that "the secret service doesn't let me ride motorcycles, especially not on my
head." He again acknowledged the Border Security Force riders later in the day, saying "I
would, by the way, not drive a motorcycle after watching those incredible acrobats."
In August 2015, Royal Enfield Motors announced it is establishing its North American
headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three
bikes, the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this
engine size represents an underserved market. The dealership will be Royal Enfield's first
company-owned store in the U.S., according to Rod Copes, president of Royal Enfield
North America. The company wants to establish about 100 dealerships in American cities
starting with Milwaukee.
"I live here, so I am biased. But in my mind, Milwaukee is kind of the center of
motorcycling in the United States," said Copes, a former Harley-Davidson
executive. "We view this as kind of our first flagship dealership," he added.
Later in August 2015, parent-business Eicher announced its entry in Indonesia as a part of
its global strategy in the mid-sized (250-750 cc) motorcycle segment, initially starting
retail operations from a dealership in Jakarta. From April to September, 2015, Royal
Enfield's domestic sales were 50% higher than the previous year, despite a declining
motorcycle market in India.
In 2017, Royal Enfield added new variants of the Classic 350 and 500 motorcycles. While
the Royal Enfield Classic 350 gets Gun Grey as a new color option, the Classic 500 will
now come in Stealth Black colour. Royal Enfield has unveiled the 650 cc twin-cylinder
engine at the Technology Centre in Leicestershire, England, on November 2017. This will
power the next generation of Royal Enfield motorcycles. Royal Enfield is going to
showcase this at the EICMA (Milan Motorcycle Show), starting from November 7 in
Italy.
Royal Enfield Plants
Royal Enfield has one manufacturing and assembly facility in Chennai, Tamil Nadu. This
manufacturing plant has been functional since 1955 and still produces the Royal Enfield
Bullet 350cc and 500 cc models.
List of models produced at the plant:
✓ Thunderbird 500
✓ Thunderbird 300
✓ Classic Desert Storm
✓ Classic Battle Green
✓ Classic Chrome
✓ Classic 500
✓ Classic 350
✓ Bullet 500
✓ Bullet 350
✓ Bullet Electra
✓ Bullet Machismo
✓ Continental GT
Selling Royal Enfield across the World
Royal Enfield's biggest market is India itself; however, it also exports various models and
variants of Royal Enfield in more than 50 countries. Some of the major markets for Royal
Enfield are in:-
✓ United States of America (USA)
✓ Australia
✓ Argentina
✓ United Kingdom (UK)
✓ Italy
✓ Japan
✓ Germany
✓ France
✓ Brazil
✓ Canada
✓ Korea
✓ Malaysia
✓ Russia
✓ Netherlands
✓ Singapore
✓ Switzerland
✓ South Africa
✓ Spain
Current Models of Royal Enfield
The Royal Enfield deals in a number of models and variants in India, all of which are
manufactured at the Chennai based plant.
✓ Thunderbird 500 (Rs. 1,73,513)
✓ Thunderbird 300 (Rs. 1,36,646)
✓ Classic Desert Storm (Rs. 1,62,958)
✓ Classic Battle Green (Rs. 1,66,000)
✓ Classic Chrome (Rs. 1,70,431)
✓ Classic 500 (Rs. 1,60,339)
✓ Classic 350 (Rs. 1,25,465)
✓ Bullet 500 (Rs. 1,50,477)
✓ Bullet 350 (Rs. 1,04,883)
✓ Bullet Electra (Rs. 1,17,681)
✓ Bullet Machismo (Rs. 1,07,00)
✓ Continental GT (Rs. 1,92,126)
Feature Model of Royal Enfield:
Royal Enfield's Research and Development Center in UK is developing a twin-cylinder
600-650cc (Codename P61) motorcycle in order to give the global brands a tough time
for sales in developing markets. The brand recently updated it's lineup and introduced
Himalayan, the tough tourer and adventure bike for those who want to keep their
aspirations high while keeping the overall cost low.
Royal Enfield has gone many folds since the introduction of new machines to their lineup
and the twin cylinder offering can easily take it's place against the entry level Harley
cruisers in the country. Those who are forced to leave Royal Enfield due to the restriction
of engine on 535cc bar could keep up with their favorite brand under a very attractive
price tag from the company.
The official body type of the motorcycle will be known after the test mules are spotted in
the wild. Till then, we can expect it to be a power cruiser. Harley Davidson, the most
potential rival to the emerging Royal Enfield has a different way of thinking about their
growth.
"We don't compete head to head with Royal Enfield and we don't think we see (smaller
displacement bikes) as something we want to get into. The fact that lots of Royal Enfield
customers aspire to come to leisure motorcycling at some time and hopefully Harley-
Davidson is the first brand that they can think of," Marc McAllister, managing director of
Harley-Davidson Asia-Pacific, said in a recent interview to ET.
Royal Enfield will cater the needs of the European amateur riders and expected power for
the bike is expected to stay below 48 PS, providing a powerful ride under the A2 license
category.
Marketing Strategy of Royal Enfield:
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:
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: Café Racer (Continental GT),
Cruiser (Royal Enfield Thunderbird 500, Thunderbird 350), Retro Street (Classic
Squadron Blue, Classic Desert Storm, Classic Battle Green, Classic Chrome, Classic 500,
Classic 350), Standard street (Royal Enfield Bullet 500, Bullet 50, Bullet ES), 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 utilizes 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:
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:
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 favored a little mores seeing the past purchase records and youngsters preference who
are their main consumers.
Promotion:
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
.
About Royal 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.
Royal Enfield Achievements & Awards:
• Royal Enfield overtook top world brand Harley Davidson in terms of sales;
approximately 3,00,000 units were sold by Royal Enfield in 2014 as compared to
2,67,000 sold by Harley Davidson.
• Royal Enfield sales jumped up to 43 percent in January 2015.
• Royal Enfield made profits worth Rs. 558 crore in 2014.
• Royal Enfield Thunderbird 500 was given the 2012 Enthusiast Motorcycle 250cc
–500cc award.
• Royal Enfield Thunderbird was conferred with ‘Motorcycle of the Year’ award
for above 250cc category in 2013.
• Royal Enfield won the 2012-13 Motorcycle Manufacturer of the Year award.
• Royal Enfield Continental GT garnered ‘Indian Motorcycle of the Year’ award in
2014.
• Bullet Classic C5 was bestowed upon Best Bike (Metric-Stock) at the Bearly
Cruzin Classic Car and Motorcycle Show in Arizona, USA, in 2009.
Royal Enfield Down, The Incredible Conclusion:
CJay Heff's conclusion to his riveting account of the crash of his Royal Enfield Bullet 612
is on the Royal Enfield Yahoo Message Board now, along with many pictures. In his
words:
"I would have to attribute the fact that there was so little damage to, well first Divine
intervention, but then to that little thing that looks like a bar end weight on the right
handle bar (shown). What it really is is a neat helmet lock. The thing is, it rotates very
freely. It served as a little caster wheel and kept the bar from digging in..."
"The scrape marks on the brake lever line up perfectly with those on the headlight. If one
places a flat piece of cardboard along those ground down flats to represent the road
surface it becomes apparent that the bike at some point was in a near vertical upside down
position."
Case Study:
In the year 1893, Enfield Manufacturing Company Ltd (Enfield Manufacturing) was
setup in England to manufacture bicycles. The company manufactured its products under
the Royal Enfield brand. Not content with limiting its product line to bicycles, Enfield
Manufacturing soon decided to focus on building other types of vehicles. In the year
1899, it started manufacturing a quadricycle called the Royal Enfield Quadricycle. The
Royal Enfield Quadricycle was powered by a rear-mounted engine. Despite being an
innovative concept at that time, the Quadricycle had limited market potential. In the year
1901, Enfield Manufacturing launched its first motorcycle. This was fitted with a 239 cc
engine.
ROYAL ENFIELD INDIA
As part of its global expansion strategy, Enfield started selling its motorcycles in the
Indian market in the year 1949. In 1955, the Indian government placed an order for eight
hundred 350 cc Royal Enfield motorcycles for use by its police and armed forces. The
Royal Enfield motorcycles were considered an ideal choice for the Indian army for
patrolling the country’s border...
A CULT BRAND IN TROUBLE
Despite operating in a niche segment, Royal Enfield remained one of the most admired
two wheeler brands in India. The bikes were preferred by both motorcycle enthusiasts and
customers in the rural areas...
REVIVING THE BRAND
Immediately after taking over as CEO, Siddhartha analyzed the strengths and weaknesses
of Royal Enfield to come up with a strategy to put the brand on its path to revival. He
came to the conclusion that the sales of Royal Enfield motorcycles needed to be improved
quickly to save the brand....
FOCUS ON OTHER BRAND ELEMENTS
With the quality issues addressed, the management focused on improving the customers’
experience of buying and owning the brand. To improve the sales experience, Royal
Enfield improved the look of the dealer outlets...
AIMING HIGHER GROWTH
Even though the prices of Royal Enfield were higher than that of the low powered
Japanese motorcycle brands sold in India, they were cheaper than the major global
brands. And in order to keep the motorcycles affordable in the price conscious Indian
market, the company did not revise its prices even after the prospects of the brand started
to improve...
LOOKING AHEAD
The strong pricing power of the Royal Enfield brand and the improved operating margins
rapidly increased the valuation of the company. By the year 2015, Eicher Motors had
become one of the most expensive automobile stocks in India...

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Royal Enfield project

  • 1. Faculty Of Business Management Report on PESTEL ANALYSYS ON Royal Enfield submitted to MARWADI UNIVERSITY Master of Business Administration By Shubham Anilbhai Chavda Enrollment No: 91700323011 Semester: 1st Subject: B.G.G.E. Subject Code: 03BM0110 Guidance by: Dr. Suneet Saxena Rajkot-Morbi Highway Road, Gauridad, Rajkot, Gujarat. 360003 Tel. (0281) – 2923112, 2924155/56 www.marwadieducation.edu.in
  • 2. Introduction Royal Enfield was a brand name under which The Enfield Cycle Company Limited of Redditch, Worcestershire sold motorcycles, bicycles, lawnmowers and stationary 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 and that business closed in 1978. A former subsidiary continues to manufacture Royal Enfield motorcycles in India. 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 Ecossais. 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 and in 1892 a new company was incorporated named Eadie Manufacturing Company Limited based in Snow Hill, Birmingham.In turn in 1907 after serious losses in their newly floated Enfield Autocar business Eadie Manufacturing and its pedal cycle component business was absorbed by BSA. Years later the BSA chairman was to tell shareholders 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 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
  • 3. of Enfield with its offshoot in Sparkbrook and had assumed the brand name Royal Enfield.[citation needed] In 1896 they also incorporated a new subsidiary company, The New Enfield Cycle Company Limited,[note 1] 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.[10] 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. Albert Eadie and Robert Walker Smith had been appointed directors of BSA before the proposed sale ha been put to shareholders. The new combined BSA and Eadie business manufactured "military and sporting rifles, (pedal) cycle and cycle components, motor-cars etc. BSA and Eadie cycle specialities". But there were still minority Eadie shareholders alongside BSA in 1957. The business of Enfield Autocar, that is to say the plant and stock, was sold to Birmingham's Alldays & Onions Pneumatic Engineering. Enfield Cycle Company took over the Hunt End premises. 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. Frank Walker Smith (1888-1962), eldest son of Robert Walker Smith, joined Enfield Cycle Company in 1909. Appointed joint (with his father) managing director in 1914 he took over the full responsibility when his father died in 1933. After his death Enfield was bought by investors E & H P Smith who sold Enfield for £82,500 to Norton Villiers in 1967. While Norton Villiers acquired 33 per cent of Enfield India the assets of Enfield's diesel engine division and pedal cycle and spares divisions were not picked up. Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967. The company's last new bicycle was the 'Revelation' small wheeler, released in 1965. Production of motorcycles ceased in 1970 and the original Redditch, Worcestershire-based company was dissolved in 1971. Enfield of India continued producing the 'Bullet', and began branding its motorcycles 'Royal Enfield' in 1999. A lawsuit over the use of 'Royal', brought by trademark owner David Holder, was judged in favour of Enfield of India, who now produce motorcycles under the Royal Enfield name.
  • 4. The Enfield Cycle Company Limited Former type Public Listed Company Industry Motorcycles, bicycles, lawnmowers, cars Successor Royal Enfield (India) Founded 1901 Founder Albert Eadie and Robert Walker Smith Defunct 1971 Headquarters Redditch, Worcestershire Key people Albert Eadie Robert Walker Smith Frank Walker Smith Products Royal Enfield Clipper, Crusader, Bullet, Interceptor, WD/RE, Super Meteor Website www.royalenfield.com
  • 5. Products Royal Enfield Quadricycle By 1899, Royal Enfield were producing a quadricycle – a bicycle modified by adding a wrap-around four-wheeled frame, retaining a rear rider-saddle with handlebars – having a front-mounted passenger seat, driven by a rear-mounted De Dion engine. After experimenting with a heavy bicycle frame fitted with a Minerva engine clamped to the front downtube, Enfield built their first motorcyclein 1901 with a 239 cc engine. 1907 Enfield 15 A light car was introduced in 1903 powered by either a French Ader V-twin or De Dion single cylinder engine. In 1906 car production was transferred to a new company, the Enfield Autocar Co Ltd with premises in Hunt End, Redditch. The independent company only lasted until 1908 when it was purchased by Alldays & Onions. In 1907, Enfield merged with the Alldays & Onions Pneumatic Engineering Co. of Birmingham, and began manufacturing the Enfield-Allday automobile. By 1910, Royal Enfield was using 344 cc Swiss Motosacoche V-Twin engines, or large- displacement JAP and Vickers-Wolseley engines.
  • 6. 1913 Enfield 425cc In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a 770 cc V-twin JAP engine which was raced successfully in the Isle of Man TT and at Brooklands. First World War (1911–1921) In 1914 Enfield supplied large numbers of motorcycles to the British War Department and also won a motorcycle contract for the Imperial Russian Government. Enfield used its own 225 cc two-stroke single and 425 cc V-twin engines. They also produced an 8 hp motorcycle sidecar model fitted with a Vickers machine gun. Inter-war years (1921–1939) 1923 Royal Enfield 225cc In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-stroke 350 cc single using a Prestwich Industries engine. In 1928, Royal Enfield began using the bulbous 'saddle' tanks and centre-spring girder front forks, one of the first companies to do so. Even though it was trading at a loss in the depression years of the 1930s, the company was able to rely on reserves to keep going. In 1931, Albert Eddie, one of the founders of the company, died and his partner R.W. Smith died soon afterwards in 1933.
  • 7. Second World War (1939–1945) Royal Enfield 250 cc, type 11F During World War II, The Enfield Cycle Company was called upon by the British authorities to develop and manufacture military motorcycles. The models produced for the military were the WD/C 350 cc sidevalve, WD/CO 350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV and WD/L 570 cc SV. One of the most well-known Enfields was the [ designed to be dropped by parachute with airborne troops. In order to establish a facility not vulnerable to the wartime bombing of the Midlands, an underground factory was set up, starting in 1942, in a disused "Bath Stone" quarry at Westwood, near Bradford-on-Avon, Wiltshire. Many staff were transferred from Redditch and an estate of "prefabs" was built in Westwood to house them. As well as motorcycle manufacture, it built other equipment for the war effort such as mechanical "predictors" for anti-aircraft gunnery: the manufacture of such high precision equipment was helped by the constant temperature underground. After the war the factory continued, concentrating on engine manufacture and high precision machining. After production of Royal Enfield motorcycles ceased, the precision engineering activities continued until the final demise of the company. Postwar Model G and Model J and ex-military C and CO (1946–1954) Postwar, Royal Enfield resumed production of the single cylinder ohv 350cc model G and 500cc Model J, with rigid rear frame and telescopic front forks. These were ride-to-work basic models, in a world hungry for transport. A large number of factory reconditioned ex-military sv Model C and ohv Model CO singles were also offered for sale, as they were sold off as surplus by various military services.
  • 8. Royal Enfield in Madrid, Spain In 1948, a groundbreaking development in the form of rear suspension springing was developed, initially for competition model "trials" models (modern enduro type machines), but this was soon offered on the roadgoing Model Bullet 350cc, a single cylinder OHV. This was a very popular seller, offering a comfortable ride. A 500cc version appeared shortly after. A mid 1950s version of the Bullet manufacturing rights and jigs, dies and tools was sold to India for manufacture there, and where developed versions continue to this day. 500 Twins, Meteors, Super Meteors and Constellations 1949-1963 In 1949, Royal Enfields version of the now popular selling parallel twins appeared. This 500cc version was the forerunner of a range of Royal Enfield Meteors, 700cc Super Meteors and 700cc Constellations. Offering good performance at modest cost, these sold widely, if somewhat quietly in reputation. The 700cc Royal Enfield Constellation Twin has been described as the first Superbike. 250 cc models Royal Enfield Crusader The 250cc class was important in the UK as it was the largest engine which a 'learner' could ride without passing a test. In the late 1950s and early 1960s, Royal Enfield produced a number of 250 cc machines, including a racer, the 'GP' and a Scrambler, the
  • 9. 'Moto-X', which used a modified Crusader frame, leading link forks and a Villiers Starmaker engine. The Clipper was a base-model tourer with the biggest-seller being the Crusader, a 248 cc pushrod OHV single producing 18 bhp (13 kW). RE GT with flyscreen RE GT with Avon Speed flow nosecone fairing In 1965, a 21 bhp (16 kW) variant called the Continental GT, with red GRP tank, five- speed gearbox (which was also an option on the Crusader), clip-on handlebars, rearset footrests, swept pipe and hump-backed seat was launched. It sold well with its race- styling including a fly-screen resembling a race number plate which doubled as a front number plate mount. RE Turbo Twin The Avon 'Speedflow' full sports fairing was available as an extra in complementary factory colours of red and white.
  • 10. Other variants were the Olympic and 250 Super 5, notable for use of leading-link front suspension (all the other 250 road models had conventional telescopic forks) and the 250 'Turbo Twin', fitted with the Villiers 247 cc twin cylinder two-stroke engine. The Royal Enfield GP production-volume racer was first raced in the Manx Grand Prix in September, 1964. Developed in conjunction with Royal Enfield Racing Manager Geoff Duke the first public appearance was at Earls Court Show in November, 1964. Using a duplex-tube frame, leading link forks and one-piece tank and seat unit, the 250cc two- stroke single engine was similar to other small capacity race machines offered from rivals Greeves, Cotton, DMW and particularly Villiers, which provided the engines for these marques and many other manufacturers and bike-builders including the 'Starmaker' competition engine used for the Scorpion racer and Sprite scrambler. Royal Enfield Interceptor Royal Enfield Interceptor motorcycle Main article: Royal Enfield Interceptor During the onslaught of the Japanese motorcycle manufacturers in the late sixties and early seventies, the English factories made a final attempt with the 692cc Interceptor in 1960 [not in citation given] –1961 [not in citation given] followed in 1962–1968 [not in citation given] by the 736cc Series I and Series II Interceptors. Made largely for the US market, it sported lots of chrome and strong performance, completing the quarter mile in less than 13 seconds at speeds well above 175 km/h (105 mph). It became very popular in the US, but the classic mistake of not being able to supply this demand added to the demise of this last English-made Royal Enfield. The Redditch factory ceased production in 1967 and the Bradford-on-Avon factory closed in 1970, which meant the end of the British Royal Enfield. After the factory closed a little over two hundred Series II Interceptor engines were stranded at the dock in 1970. These engines had been on their way to Floyd Clymer in the US; but Clymer had just died and his export agents, Mitchell's of Birmingham, were left to dispose of the engines. They approached the Rickman brothers for a frame. The main problem of the Rickman brothers had always been engine supplies, so a limited run of Rickman Interceptors were promptly built.
  • 11. As far as the motorcycle brand goes, though, it would appear that Royal Enfield is the only motorcycle brand to span three centuries, and still going, with continuous production. A few of the original Redditch factory buildings remain (2009) and are part of the Enfield Industrial Estate. Enfield Indians From 1955 to 1959, Royal Enfields were painted red, and marketed in the USA as Indian Motorcycles by the Brockhouse Corporation, who had control of the Indian Sales Corporation (and therefore Indian Motorcycles) and had stopped manufacturing all American Indians in the Springfield factory in 1953. But Americans were not impressed by the badge engineering and the marketing agreement ended in 1960, and from 1961, Royal Enfields were available in the US under their own name. The largest Enfield 'Indian' was a 700 cc twin named the Chief, like its American predecessors. Enfield India (since 1949) Enfield India 350cc- Madras Royal Enfield motorcycles had been sold in India since 1949. In 1955, the Indian government looked for a suitable motorcycle for its police and army, for use patrolling the country's border. The Bullet was chosen as the most suitable bike for the job. The Indian government ordered 800 350-cc model Bullets, an enormous order for the time. In 1955, the Redditch company joined Madras Motors in India in forming "Enfield India" to assemble, under licence, the 350 cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). Under Indian law, Madras Motors owned the majority (over 50%) of shares in the company. In 1957 tooling equipment was sold to Enfield India so that they could manufacture components. Enfield of India continued producing the 'Bullet' long after the UK factory's bankruptcy, and changed its branding to 'Royal Enfield' in 1999. The 'Royal Enfield' name and rights had been purchased by Matt Holder of Aerco Jigs and Tools, at the bankruptcy sale in 1967. The business passed on to his son, David Holder, of the Velocette Motorcycle Company of Birmingham, UK. The Holder family has produced spares for Royal Enfield motorcycles continuously from 1967 through to the present,[disputed – discuss] but did not trade under the Royal Enfield name. While David Holder objected to the use of 'Royal
  • 12. Enfield' by Enfield of India, a UK court ruled in favour of the Indian company, who have now assumed the trademark, and produce motorcycles as Royal Enfield. Royal Enfield India manufactures and sells in India, and also exports to Europe as well as the Americas, South Africa and Australia. They recently entered the Indonesian market. Recently Royal Enfield has undergone a major retooling particularly in the engine department going from carburated cast-iron engines to twin spark unit construction engines on all its models, with Electronic Fuel Injection (EFI) available on their flagship 500 cc model. The major redesign has sparked such a demand for the bikes that Royal Enfield have started double shifts at their plants. In August 2015, Royal Enfield Motors announced it is establishing its North American headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three bikes, the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this engine size represents an underserved market. The dealership will be Royal Enfield's first company-owned store in the U.S., according to Rod Copes, president of Royal Enfield North America. The company wants to establish about 100 dealerships in American cities starting with Milwaukee. Royal Enfield Classic 500 in Belgium "I live here, so I am biased. But in my mind, Milwaukee is kind of the center of motorcycling in the United States," said Copes, a former Harley-Davidson executive. "We view this as kind of our first flagship dealership," he added. On November 9th, 2017 Royal Enfield revealed their new 650 twins, the Interceptor and Continental GT 650.
  • 13. PESTEL analysis PESTLE analysis of the motor bikes industry in UK PESTLE analysis{Palmer Clive }of motorbike industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. It is also perfect tools for mangers and policy makers of motorbike industry,helping them to analyzing the factors which are affecting while driving their industry to different countries of the world. Throughout the last few year,the acronym PESTLE has been suffering a numbers of changes,but it seem to be the most important factor which is helpful for decision-makers of royal-Enfield to analysis the current situation of the that country where industry expands.There are six factors which are influencing PESTLE analysis. Political factors include areas such as taxation policy, law labor of law,transportation problems and stable political environment. Furthermore, governments have great influence proposal that limit 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 into the market so UK government take some steps to solved the this problem.Royal Enfield sales would affect by this issue.Furthermore UK consumers pay higher pre-tax prices for Motorbikes than anyone else in the Europe.Government is keen to attract foreign. PESTEL Analysis in India: A Cult Motorcycle From India Takes On the World The Royal Enfield Motors factory in Chennai, India. The brand sold nearly 175,000 motorcycles in 2013. By SAMANTH SUBRAMANIAN Published: January 3, 2014 NEW DELHI, India — The Royal Enfield Bullet, often described as the oldest continuously produced motorcycle in the world, is a cult product for enthusiasts who love it for its vintage feel as much as for the thrum of its engine. Muscular and pliant, the Bullet — an Indian-made avatar of an old British brand — has found renewed popularity over the last few years, as leisure motorcycling in India has blossomed. Its manufacturer, Royal Enfield Motors, sold almost 175,000 motorcycles —Bullets as well as three other brands — in 2013. The company is now looking to push harder into British and American markets, hoping to follow in the wake of other Indian motor vehicle manufacturers that have competed hard with overseas brands even as their peers in other industries have struggled. Royal Enfield’s newest model, a midsize “cafe racer” called the Continental GT, was introduced at an elaborate event in London in September. “It’s the first bike that we’ve developed keeping the world market in mind,” said Siddhartha Lal, who is credited with turning Royal Enfield around. Mr. Lal, age 40, is the chief executive of Eicher Motors, a manufacturer of buses, trucks and tractors that owns Royal Enfield. Uncommonly for an Indian executive, he sports sideburns and wears jeans.
  • 14. Royal Enfield in India: Royal Enfield is an Indian motorcycle manufacturing company with factories in Chennai, India. Originally a British motorcycle company, Royal Enfield and indigenous Madras Motors, it is now a subsidiary of Eicher Motors Limited, an Indian automaker. The company makes the Royal Enfield Bullet, and other single- cylinder motorcycles. Established in 1893, Royal Enfield is the oldest motorcycle brand in the world still in production, with the Bullet model enjoying the longest motorcycle production run of all time. 2014 redesign of Royal Enfield logo Type Public Industry Automotive Predecessor Royal Enfield (UK) Founded 1955 as Enfield India Headquarters Chennai, India Key people Siddhartha Lal (CEO) Rudratej Singh (President) Products List of Royal Enfield motorcycles Production output 450,000 units (2016) 302,591 units (2014) 178,120 units (2013) Parent Eicher Motors Website Royal Enfield
  • 15. History The Indian government looked for a suitable motorcycle for its police and army, for patrolling the country's border. The Royal Enfield Bullet was chosen as the most suitable bike for the job. The Indian government ordered 800 350 cc model Bullets. In 1955, the Redditch company partnered with Madras Motors in India to form 'Enfield India' to assemble, under licence, the 350 cc Royal Enfield Bullet motorcycle in Madras (now called Chennai). The tooling was sold to Enfield India so that they could manufacture components. By 1962, all components were made in India. The Indian Enfield uses the 1960 engine (with metric bearing sizes), Royal Enfield still makes an essentially similar bike in the 350 cc and 500 cc models, along with several different models for different market segments. Royal Enfield was a brand of the Enfield Cycle Company, a British manufacturing firm. It started in India for the Indian Army 350 cc bikes were imported in kits from the UK and assembled in Chennai. After a few years, the company started producing the 500 cc Bullet. In 1990, Royal Enfield collaborated with the Eicher Group, an automotive company in India, and merged with it in 1994. Apart from bikes, Eicher Group is involved in the production and sales of tractors, commercial vehicles, and automotive gears. Although Royal Enfield experienced difficulties in the 1990s, and ceased motorcycle production at their Jaipur factory in 2002, by 2013 the company opened a new primary factory in the Chennai suburb of Oragadam on the strength of increased demand for its motorcycles. The original factory at Tiruvottiyur became secondary, and continues to produce engines and some motorcycle models. In 2014 Royal Enfield appointed Pierre Terblanche as the head of new product design. In January 2015, the company announced the appointment of Rudratej ‘Rudy’ Singh as President of Royal Enfield. Singh was previously a Vice President of Unilever in Singapore. Royal Enfield announced its first takeover of another company in May, 2015 with the purchase of a UK motorcycle design and manufacturing firm, Harris Performance Products, that had previously developed the chassis of the Royal Enfield Continental GT Cafe Racer. Royal Enfield currently sells motorcycles in more than 50 countries. Royal Enfield surpassed Harley-Davidson in global sales in 2015, and received an acknowledgment from US President Barack Obama as the guest of honor at the 2015 Delhi Republic Day parade. "I saw the Republic Day daredevils on Royal Enfield motorcycles," Obama said, adding that "the secret service doesn't let me ride motorcycles, especially not on my head." He again acknowledged the Border Security Force riders later in the day, saying "I would, by the way, not drive a motorcycle after watching those incredible acrobats." In August 2015, Royal Enfield Motors announced it is establishing its North American headquarters and a dealership in Milwaukee, Wisconsin, with the intention to offer three bikes, the Bullet 500, Classic 500 and Continental GT 535 Cafe Racer as they feel this engine size represents an underserved market. The dealership will be Royal Enfield's first
  • 16. company-owned store in the U.S., according to Rod Copes, president of Royal Enfield North America. The company wants to establish about 100 dealerships in American cities starting with Milwaukee. "I live here, so I am biased. But in my mind, Milwaukee is kind of the center of motorcycling in the United States," said Copes, a former Harley-Davidson executive. "We view this as kind of our first flagship dealership," he added. Later in August 2015, parent-business Eicher announced its entry in Indonesia as a part of its global strategy in the mid-sized (250-750 cc) motorcycle segment, initially starting retail operations from a dealership in Jakarta. From April to September, 2015, Royal Enfield's domestic sales were 50% higher than the previous year, despite a declining motorcycle market in India. In 2017, Royal Enfield added new variants of the Classic 350 and 500 motorcycles. While the Royal Enfield Classic 350 gets Gun Grey as a new color option, the Classic 500 will now come in Stealth Black colour. Royal Enfield has unveiled the 650 cc twin-cylinder engine at the Technology Centre in Leicestershire, England, on November 2017. This will power the next generation of Royal Enfield motorcycles. Royal Enfield is going to showcase this at the EICMA (Milan Motorcycle Show), starting from November 7 in Italy. Royal Enfield Plants Royal Enfield has one manufacturing and assembly facility in Chennai, Tamil Nadu. This manufacturing plant has been functional since 1955 and still produces the Royal Enfield Bullet 350cc and 500 cc models. List of models produced at the plant: ✓ Thunderbird 500 ✓ Thunderbird 300 ✓ Classic Desert Storm ✓ Classic Battle Green ✓ Classic Chrome ✓ Classic 500 ✓ Classic 350 ✓ Bullet 500 ✓ Bullet 350 ✓ Bullet Electra ✓ Bullet Machismo ✓ Continental GT
  • 17. Selling Royal Enfield across the World Royal Enfield's biggest market is India itself; however, it also exports various models and variants of Royal Enfield in more than 50 countries. Some of the major markets for Royal Enfield are in:- ✓ United States of America (USA) ✓ Australia ✓ Argentina ✓ United Kingdom (UK) ✓ Italy ✓ Japan ✓ Germany ✓ France ✓ Brazil ✓ Canada ✓ Korea ✓ Malaysia ✓ Russia ✓ Netherlands ✓ Singapore ✓ Switzerland ✓ South Africa ✓ Spain Current Models of Royal Enfield The Royal Enfield deals in a number of models and variants in India, all of which are manufactured at the Chennai based plant. ✓ Thunderbird 500 (Rs. 1,73,513) ✓ Thunderbird 300 (Rs. 1,36,646) ✓ Classic Desert Storm (Rs. 1,62,958) ✓ Classic Battle Green (Rs. 1,66,000) ✓ Classic Chrome (Rs. 1,70,431) ✓ Classic 500 (Rs. 1,60,339) ✓ Classic 350 (Rs. 1,25,465) ✓ Bullet 500 (Rs. 1,50,477) ✓ Bullet 350 (Rs. 1,04,883) ✓ Bullet Electra (Rs. 1,17,681) ✓ Bullet Machismo (Rs. 1,07,00) ✓ Continental GT (Rs. 1,92,126)
  • 18. Feature Model of Royal Enfield: Royal Enfield's Research and Development Center in UK is developing a twin-cylinder 600-650cc (Codename P61) motorcycle in order to give the global brands a tough time for sales in developing markets. The brand recently updated it's lineup and introduced Himalayan, the tough tourer and adventure bike for those who want to keep their aspirations high while keeping the overall cost low. Royal Enfield has gone many folds since the introduction of new machines to their lineup and the twin cylinder offering can easily take it's place against the entry level Harley cruisers in the country. Those who are forced to leave Royal Enfield due to the restriction of engine on 535cc bar could keep up with their favorite brand under a very attractive price tag from the company. The official body type of the motorcycle will be known after the test mules are spotted in the wild. Till then, we can expect it to be a power cruiser. Harley Davidson, the most potential rival to the emerging Royal Enfield has a different way of thinking about their growth. "We don't compete head to head with Royal Enfield and we don't think we see (smaller displacement bikes) as something we want to get into. The fact that lots of Royal Enfield customers aspire to come to leisure motorcycling at some time and hopefully Harley- Davidson is the first brand that they can think of," Marc McAllister, managing director of Harley-Davidson Asia-Pacific, said in a recent interview to ET. Royal Enfield will cater the needs of the European amateur riders and expected power for the bike is expected to stay below 48 PS, providing a powerful ride under the A2 license category.
  • 19. Marketing Strategy of Royal Enfield: 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: 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: Café Racer (Continental GT), Cruiser (Royal Enfield Thunderbird 500, Thunderbird 350), Retro Street (Classic Squadron Blue, Classic Desert Storm, Classic Battle Green, Classic Chrome, Classic 500, Classic 350), Standard street (Royal Enfield Bullet 500, Bullet 50, Bullet ES), 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 utilizes 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.
  • 20. Price: 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: 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 favored a little mores seeing the past purchase records and youngsters preference who are their main consumers. Promotion: 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 .
  • 21. About Royal 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. Royal Enfield Achievements & Awards: • Royal Enfield overtook top world brand Harley Davidson in terms of sales; approximately 3,00,000 units were sold by Royal Enfield in 2014 as compared to 2,67,000 sold by Harley Davidson. • Royal Enfield sales jumped up to 43 percent in January 2015. • Royal Enfield made profits worth Rs. 558 crore in 2014. • Royal Enfield Thunderbird 500 was given the 2012 Enthusiast Motorcycle 250cc –500cc award. • Royal Enfield Thunderbird was conferred with ‘Motorcycle of the Year’ award for above 250cc category in 2013. • Royal Enfield won the 2012-13 Motorcycle Manufacturer of the Year award. • Royal Enfield Continental GT garnered ‘Indian Motorcycle of the Year’ award in 2014. • Bullet Classic C5 was bestowed upon Best Bike (Metric-Stock) at the Bearly Cruzin Classic Car and Motorcycle Show in Arizona, USA, in 2009.
  • 22. Royal Enfield Down, The Incredible Conclusion: CJay Heff's conclusion to his riveting account of the crash of his Royal Enfield Bullet 612 is on the Royal Enfield Yahoo Message Board now, along with many pictures. In his words: "I would have to attribute the fact that there was so little damage to, well first Divine intervention, but then to that little thing that looks like a bar end weight on the right handle bar (shown). What it really is is a neat helmet lock. The thing is, it rotates very freely. It served as a little caster wheel and kept the bar from digging in..." "The scrape marks on the brake lever line up perfectly with those on the headlight. If one places a flat piece of cardboard along those ground down flats to represent the road surface it becomes apparent that the bike at some point was in a near vertical upside down position."
  • 23. Case Study: In the year 1893, Enfield Manufacturing Company Ltd (Enfield Manufacturing) was setup in England to manufacture bicycles. The company manufactured its products under the Royal Enfield brand. Not content with limiting its product line to bicycles, Enfield Manufacturing soon decided to focus on building other types of vehicles. In the year 1899, it started manufacturing a quadricycle called the Royal Enfield Quadricycle. The Royal Enfield Quadricycle was powered by a rear-mounted engine. Despite being an innovative concept at that time, the Quadricycle had limited market potential. In the year 1901, Enfield Manufacturing launched its first motorcycle. This was fitted with a 239 cc engine. ROYAL ENFIELD INDIA As part of its global expansion strategy, Enfield started selling its motorcycles in the Indian market in the year 1949. In 1955, the Indian government placed an order for eight hundred 350 cc Royal Enfield motorcycles for use by its police and armed forces. The Royal Enfield motorcycles were considered an ideal choice for the Indian army for patrolling the country’s border... A CULT BRAND IN TROUBLE Despite operating in a niche segment, Royal Enfield remained one of the most admired two wheeler brands in India. The bikes were preferred by both motorcycle enthusiasts and customers in the rural areas... REVIVING THE BRAND Immediately after taking over as CEO, Siddhartha analyzed the strengths and weaknesses of Royal Enfield to come up with a strategy to put the brand on its path to revival. He came to the conclusion that the sales of Royal Enfield motorcycles needed to be improved quickly to save the brand.... FOCUS ON OTHER BRAND ELEMENTS With the quality issues addressed, the management focused on improving the customers’ experience of buying and owning the brand. To improve the sales experience, Royal Enfield improved the look of the dealer outlets... AIMING HIGHER GROWTH Even though the prices of Royal Enfield were higher than that of the low powered Japanese motorcycle brands sold in India, they were cheaper than the major global brands. And in order to keep the motorcycles affordable in the price conscious Indian market, the company did not revise its prices even after the prospects of the brand started to improve...
  • 24. LOOKING AHEAD The strong pricing power of the Royal Enfield brand and the improved operating margins rapidly increased the valuation of the company. By the year 2015, Eicher Motors had become one of the most expensive automobile stocks in India...