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.
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.
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
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
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.
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
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.
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.
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