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Royal Enfield Marketing

  1. Sushant Kumar Sinha MBA-PM, Batch-13 Roll No. 58 A Marketing Management “Miracle”
  2. Evolution  Made in England, Sold in India from 1949  Redditch Company partnered with Madras Motors to form “Enfield India”, to fulfill the requirement of 800 bikes by Indian Military forces, 1955  Launch of “350cc Royal Enfield”, 1955  Eicher Group bought into Enfield India, 1994 Around year 2000, board of directors at Eicher Motors decided to either shut down or sell off Royal Enfield, as the sales of the bike was down to 2000 units a month against the plant’s installed capacity of 6000 and losses had been mounting for years.
  3. Resurrection  Mr. Siddhartha Lal (Promoter) along with Mr. R.L. Ravichandran (Former- CEO) gave the necessary face lift to the dying brand. Currently Siddhartha Lal is serving as CEO & MD of the Eicher Motors. He had his PGD in Mechanical Engineering(Carnfield Univ.) and MSc in Automotive Engineering(Univ. of Leeds) along with BA (Hons) in Economics from St. Stephen’s College.  Challenge to the Management Increase the market share of the bike without compromising the individuality of Royal Enfield and competing with various other existing manufacturers in the industry.
  4. Strategy for Face Lift  Study of Consumer satisfaction Market study for the problem faced by existing customers pertaining to various components of the bike which led to the decline of sales.  New Engine Development Decision to move on to a new engine to overcome all the existing problems faced by current engine by the study of various leisure bike manufacturers across the globe to increase the fuel efficiency, reduced weight and swapping of gear and braking system
  5. Advertisement- Strategy  Showcasing at Auto Expo, 2008 Presenting the Royal Enfield and Thunderbird at Auto Expo 2008, with conquering the terrain theme  Unique Advertisement With Royal Enfield Leave Home campaign Since then company has not come up with new advertisements, rather now company uses various other promotion strategy and most importantly word of mouth for their sustained and increased sales
  6. Promotion- Strategy  Organizing nation wide tours Company organizes annual nation wide tours for the existing owner their bike to showcase the performance of bikes in the rough conditions and for enriching the customer experience  Factory Tour Company offers factory tour to the bike lover on every 2nd and 4th Saturday, where customers are taken to assembly line.
  7. Continued…  Targeting Leisure Customers Instead of launching a lower segment product for the different consumer base, which already has plenty of other players, it focused on introducing more variants for the premier end customers (Cruiser Bike- Thunderbird)  Sales through Company owned Showrooms Opened company owned showrooms to raise customer satisfaction
  8. Continued…  Accessories & Apparels Besides the motor bike, company has also started selling the biker accessories like Jackets, Trousers, Boots, Helmets, Eyewear, T-Shirts, Gloves, Buffs and Lapel Pins. This has been done to more closely associating the customer to the brand Royal Enfield  Development of Forum Online forum has been developed for the present customers to discuss various technical issues and trip related information.
  9. Outcome Introduction of Variants  Café Racer-Continental GT  Cruiser- Thunderbird 500, 350  Retro Street- Classic Dessert Strom, Battle Green, Chrome, 500, 350  Standard Street- Bullet 500, 350, Electra From the initial annual capacity of 72000 bikes to current capacity of 1.5 lac bikes and still with piling order for over a period of six month company has planned to increase the production up to 3 lac bikes to meet the ever increasing demand from domestic and International market as well.
  10. Future Challenges With the arrival of global brand Harley- Davidson, the company may face a tough competition in the leisure bike segment. But the company seems prepared for the new challenges and it was clearly seen by its recent introduction of “Continental GT” to cater the demand of still higher segment bikers
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