Marketing Management Group Project Case study on Revival of the Royal Enfield Motorcycles
Group 7, Section B Aayushi Verma (0089/53) Bhawna Setia (0099/53) Chirag Ashok Kavdia (0109/53) Deepshika Sagar (0119/53) Doddi Durga Prasanna (0129/53) Gaurav Raj Anand (0139/53) Shivanee Pethe (FP/17/16)
Introduction The Enfield Cycle Company popularly known for motorcycle brand Royal Enfield was founded as Enfield Manufacturing Company Limited in 1893 by Albert Eadie and Robert Walker Smith after taking over the Townsend Cycle Company of Enfield Road in Redditch, UK . It started by supplying rifle parts to the Royal Small Arms factory in 1892 in Enfield and thus gets Royal in its name and stature and trademark “Made like a Gun” . Later in 1901 the very first motorcycle was produced with Minerva engine placed in front of the steering head and rear wheel drive. Royal Enfield produced large no of motorcycles to support centrally involved Britain at the time of outbreak of World War 2. This aided improvement in motorcycle technology and several legendary models were developed including legendary Bullet, the model with longest production run. Royal Enfield also won a contract from Imperial Russian Government. K.R. Sundaram Iyer founded Madras Motors in Chennai with intent of importing British motorcycles to India which later partnered with Redditch Company to form 'Enfield India' Motorcycles are currently manufactured in Chennai in Oragadam manufacturing complex .All the parts used in the bikes are sourced from Indian vendors mostly from automotive industry. Royal Enfield bikes were being sold in India ever since 1949. In 1955, the Indian government started looking for a suitable vehicle for the police and the army on the country's border. The Bullet 350 was chosen as the most suitable bike for patrolling duties. The Indian government placed an order of 800 motorcycles, huge order for that time. Thus In 1955, 'Enfield India' assembled these 350 cc Bullet motorcycle under license in erstwhile Chennai. As per their agreement Madras Motors owned the majority (over 50%) of shares in the company. In 1957 tooling equipment was also sold to Enfield India so that they could manufacture gears and other similar parts and start full-sized production. Royal Enfield UK terminated production in 1970 which subsequently led to dissolution of the company in 1971. In 1990, Enfield India entered into a strategic alliance with the Eicher Group, and later merged with it in 1994. It was during this merger that the name Enfield India changed to Royal Enfield. Royal Enfield has set up has a wide network of 11 Brand Stores, 250 dealers in all major cities and towns, and over 200 Authorized Service Centre in India. They believe in staying so close to the customer, so that they can feel their pulse. Apart from sales in India, the Company also exports motorcycles to 42 countries like the USA, Japan, UAE, Korea, Bahrain, France, Germany, Argentina and several other countries through 40 importers and over 300 dealers across the globe. Royal Enfield sells bikes in 250cc and above segments and has registered total domestic sales of 4,44,527 units in CY 2015. The company's Q1 FY’17 internal sales were up by 37 percent, while exports increased by 82 percent. Its total sales for the period stood at 1,47,483 units as against 1,06,613 units during same period previous year. The company management is looking to achieve a production capacity of 620,000 units for the calendar year 2016. Its board has given an in-principle approval for setting up a third plant at its Oragadam manufacturing complex near Chennai, which is expected to enhance the production capacity to about 9 lakh units in FY’18. The Royal Enfield carries the legacy of a weapon manufacturer and is reflected in the logo embracing the cannon, and the motto "Made like a gun". The only motorcycle manufactured in India synonymous with adventure and leisure riding, Royal Enfield has concentrated more on building its brand around the values that the brand stands for. Having an Offbeat status the Royal Enfield motorcycle is known for its versatility, uniqueness, long-lasting performance and sturdiness. Royal Enfield means more than just bike
to its customers; it sends of belonging to the exclusive community with unfading passion and emotion. With biked like Thunderbird, the Ultimate Highway Cruiser, the brand is conceived as a machine in a class of its own and synonymous with both luxury and adventure. Royal Enfield strongly promotes leisure motorcycling as a lifestyle and encourages the Royal Enfield riders/owners to keep riding. The company organizes annual events and rides such as the Himalayan Odyssey, the Tour of Rann of Kutch, The Tour of NH-17 (Mumbai to Goa), the Tour of Rajasthan and the Southern Odyssey to keep up the spirit. It also organizes the Annual festival of biking, Rider Mania in Goa which attracts Royal Enfield riders from all over the world. With the finest teams , committed workforce and brightest leadership in the country , the company has a unique value proposition to the consumers and open culture to engage customers .To develop an allinclusive ecosystem of leisure motorcycling, In Jun’16 Royal Enfi eld declared collaboration with one of India's top e-commerce portals, Flipkart. The complete assortment of Royal Enfield apparel and gear will now be available on the e-commerce portal ranging from helmets, riding gear, saddle bags, and head-gear to lifestyle products such as shoes, T-shirts and jackets. The company is all set to augment its strong position, be it the power and distinctly styled bike segment or the classic bike segment.
Problems Faced By Royal Enfield over the Years Royal Enfield, the top notch leader in the bikes segment, faced downfall in sales after ruling the market of motorcycles for 40 years. Few bikes which brought huge profits to Royal Enfield were 225cc two-stroke single,976 cc twin, Royal Enfield WD/RE,350 CC four stroke and 500cc bikes. Between 1956 and 1960, many models of 350 cc Bullets were introduced like 350cc Trials “works replica” version, a 350cc “Clipper” model and the Airflow version. While changes in these bikes were made in seating, instrumentation, handlebars and fuel tank but the engine was not changed. Few technical changes were as well done in 350cc bikes like alternator charging and coil ignition etc. Advancement in the 350cc Bullet increased its demand among costumers while this led to a decrease in demand of 500cc Bullet Bikes. Eventually, the company stopped manufacturing 500cc bikes. British Royal Enfield had the majority of business in the US, as establishments of Indian arm separated the business. During the 1960s, Japanese motorbikes became popular in the US because of the cheaper price, easy availability, light weight and to counter this Royal Enfield designed a new bike RE Interceptor, especially for the US market. It completed 1 mile in 52 seconds i.e. it supported the speed of more than 175km/h. The demand of RE interceptor was very high as compared to the supply of the bike. Royal Enfield was to unable to meet the demand due to the large time required for the production of bikes. The fewer supply of Bullet gave space to the market Japanese bikes and this led to the shut of Britain unit of Royal Enfield. Enfield India
In 1949, Royal Enfield Bullet was first introduced in India and since then its base was slowly growing in India. In 1955, Redditch company collaborated with Madras motors to form Enfield India and to set up a factory where assembling of parts was done. Rising demand of Bullet Bikes in India led to the advancement of infrastructure in Madras factory and till 1957 Enfield India LTD. Started its production in India. In 1965, Indian Army was searching for a bike that would be suitable for patrolling. Indian Army thought Bullet to be the best choice for Patrolling as it had strongly built structure and engine quality. The order of 800 350cc Bullets was placed from Indian Army. While from 1955-1965, the British arm of the
company made changes in the Bullet like changes in gear ratios ,moving to alternator charging etc. but these changes were not incorporated in Indian arm due to the order placed by Indian Army. This is the reason behind the difference of operations of Indian arm and British arm. Indian owners didn't change anything in the model, not even the fundamental improvements were incorporated in the 350cc Bullet for 29 years since 1955 and this was the reason for the decline in the quality of parts of Bullet. Their move to not focus on changing the features like mileage and improving the quality of parts Bullet led to the decline of its sales in the 1980s because till this time customer were concerned about these things. Between1980 and 1990, the Bullet Bikes in India was competing with the Yamaha RD350 and the Yezdi. Another with the Bullet was the large size of its engine and it also competed with bikes having 100cc engine but its size was less than 1/3 the size of the engine of Bullet. Bikes had the huge fan following but there were the lot of complaints about fuel leakages, electrical failure, and engine failures led to the decline in sales. In 1990, the share of Royal Enfield came down to 5% from 22-30% (share early of the 1980s) . Lowering of share resulted in the bankruptcy of the company and Eicher group took over the Royal Enfield India Ltd. to revive the company and again turned it profitable. Problems faced by RE 350 cc in India in 21st century between 2000 - 2010
Battery of the RE 350cc proved to be a problem for the well-established image of RE bikes. One of the complaints was that the battery was fully discharged just 6 months after the purchase of the bike and the bike till then only covered 2800 km. And on the other hand, one person replaced the battery 3 times after that as well, the problem was not removed. The use of old cast iron engines resulted in the lower performance of the bikes. Old cast iron engines were not fueled efficient, there was oil leakage as well in those engines. These engines required the frequent servicing of the bikes with increased the maintenance cost of the bikes. The service centers didn't cater the problem with bikes efficiently. The loosening of the wiring of headlight and clutch hassled bike riders. The issues which were repeatedly seen were the sudden on-off of the headlights and the onset of monsoon created the problem in starting the bike by self-start etc. Another issue which every "bullet" report is the slow speed of the bike. These are not the racing bikes. The continuous increase in the popularity of the Harley-Davidson because of the hassle free services provided by the American Bike than the RE bikes was the another reason for lower sales of RE Bikes. (Refer Exhibit 1)
All these problems resulted in the lower sales of the Bullet. The dealers stopped selling the RE bikes and company incurred huge loss. Siddhartha Lal , the then COO had to convince the board members of the Eicher group to not shut down the manufacturing of RE bikes. After the adoption of Unit Construction Engines (UCE) and changes in the administration of the organization, the sales of RE Bikes increased from 2012. (Refer Exhibit 2)
Industry Analysis The automobile sector in India plays a very crucial role contributing 7.1% to country’s gross domestic product (GDP). Government of India has taken various initiatives to boost indigenous manufacturing
underrates pet project of “Make in India”. The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route. Although India has a low per capita ownership of automobiles of 18 per 1000 people compared to various developed countries such as US (687 per 1000), Japan (597 per 1000)1. Of all the vehicles categories, 2wheeler contributes to more than 80% of the vehicles sold in India (Refer Exhibit 3 Domestic market Share Vehicle Wise 2015-16 ). This may be attributed to the congested layout in major part of the country, low per capita income, high fuel efficiency, low cost and maintenance. The two wheeler segment is divided into three segments - Motorcycle, Scooter and Moped, with motorcycles accounting for the majority share of 65%. The demand of both the motorcycle and mopeds are primarily rural demand, affecting the growth of these sectors as the rural sector has been hit with consecutive draught years.
MARKET SHARE SEGEMNT WISE
2011-12
2012-13
2013-14
2014-15
2015-16
Scooter
19.1
21.2
24.3
28.2
30.6
Motorcycle
75.1
73.1
70.8
67.1
65
Moped
5.8
5.7
4.9
4.7
4.4
Source: “Two-wheeler market to have touched Rs 820 billion in 2015-16”, May 20, 2016, https://www.crisilresearch.com/industryasync.jspx?serviceId=5&State=null#storyId#119895#sectionId#2645#newsFeedId#undefine d
Two wheeler vehicles are categorized into three segments based on their power, mileage and price range. Royal Enfield positions its entire model in the premium segment. Segment
Power
Mileage
Price Range (INR)
Economy
> 55 kmpl
50 - 55 kmpl
<50 kmpl
Executive
100 - 110 cc
125+ cc
>150 cc
Premium
40,000 - 50,000
50,000 - 65,000
>65,000
Market Share
23
56
21
Source: Saillaja .V, “Study on Two Wheeler Market Segmentation and its Strategy in India”, International Journal of Science and Research (IJSR), https://www.ijsr.net/archive/v4i10/SUB158925.pdf
Competition Exhibit 4 lists the major brands and their respective market share in the motorcycle segment of two wheelers. During the 1960’s many automobile manufacturers were granted licenses to increase indigenization of the sector. Till the 1980’s there were only three major motorcycle manufacturers namely 1
Nations with MOST number of cars per 1,000 people, September, 2011, http://www.rediff.com/business/
Enfield, Escort and Rajdoot, it was after that foreign players were allowed to enter the Indian economy. The current FDI policies have opened gates for everybody, increasing competition for Indian manufacturers. Royal Enfield has taken many initiatives and strategical decisions covering all aspects production, sales and distribution, marketing and branding to revive itself from its position in 2000. Targeting all of its models in the premium segment, it has increased its market presence from almost negligible to 5% of the motorcycle segment. REML was amongst the few who managed to have a very high growth in both domestic sales (54%) and exports (32%) despite the industry in general facing downturn in both of them. Exhibit 5 gives the market share of various players in the premium sub-segment of motorcycle sales.
Bajaj: Bajaj Auto Ltd. has one of the oldest manufacturers of two wheelers in India, it made its entry into the Indian economy with Vespa. The company has maintained its position as the second largest manufacturer in India and has models placed in all the sub-segments. It has the majority market share in the premium segment owing to the launch of various models of its Pulsar range. Also facing stiff competition in this segment, Bajaj decided to enter into JV with KTM and Ninja to increase its market share in the premium segment. Around 90% of the proposed new launches by the company are targeting the premium segment. Yamaha: Yamaha entered the Indian economy because of the relaxation in the restriction on foreign players entry. Although it doesn't have a majority share in the motorcycle segment, but has 4 out of its 6 models placed in the premium segment. The company has over the years increased its share in this sub-segment by launching various variants and also planning its future launches in this segment. Global Players: With the entry of various global players either through Joint Ventures or through their own subsidiary has made the competition in the premium segment very stiff. Harley Davidson and Triumph have started making their mark in the Indian market by launching various models at competitive prices.
Revival Eicher motors share prices have shot up from Rs 17.50 in 2001 to Rs 22380 in 2016. In FY16, Eicher Motors earns over Rs 6419.49 crore in revenues and makes a net profit of Rs 1229.85 crore. Royal Enfield brings in about 80% of these profits. This turnaround points out to key decisions of one person who believed in Enfield and gave it another chance when the brand was going through a very unprofitable phase. Siddhartha Lal, a third generation member of Delhi based lal family stood up to the board to give Royal Enfield another chance. Lal, was 26 and an unabashed bullet fan when he took over as CEO of Royal Enfield in 2000. Immediately after taking over as CEO, Siddhartha made several critical changes. After thorough analysis of Strengths and weaknesses of Royal Enfield, He came up with a strategy to revive the cult brand to its previous glory.
Product –
Enfield primary challenge was to bring in changes to product quality to make bike more acceptable, retaining the old look which was more acceptable by Enfield fans. Keeping in mind that any major change to look and feel of the bike would damage the loyal market segment, lal and his team had a tough task at hand. Change in gear position and engine were some of the key changes implemented. In order to meet the strict emission norms implemented, the old iron engine was replaced with the modern aluminum engine. The new engine has 30% fewer parts and produced 30% more power with better fuel efficiency. Quality of bike components were improved through fine tuning of shop floor process, Supply side quality was improved. Royal Enfield also embarked on a large scale internal exercise to tune up performance . Divesting of business
Before the revival phase, the group holds multiple subsidiaries in diverse sectors like tractors, motorcycles, trucks, and footwear. But they failed to capture major market share in none of the sectors. Lal decided to divest 13 businesses and divert the focus completely on Royal Enfield and trucks business, two businesses where he believed the group had a genuine shot at leadership. Upshot of Sales
Eicher motors were selling approximately 25,000 bikes in 2005. "I was clear that it would be an amazingly profitable business," recalls Lal. But the company should expand its manufacturing scale. He thought that the fixed costs should accompany a minimum capacity of 100,000 bikes. "This set the building blocks for the next decade," says Lal. Under the leadership of Lal, the product quality improved which reflected the increase in sales. The company was able to sell 50,000 bikes on three different platforms. Lal thought of building all Enfield products on a single platform which would result in maximizing the economies of scale. In the span of 5 years, sales increased 600% from FY 10 to FY 14. Refer Exhibit 6 for complete 5 years sales data for Eicher motors.
Promotional Campaign and Branding The Royal Enfield brand was first established in the early 1900s. The brand signified strength and durability which was reflected in their campaign motto “Made like a gun”. In 1994, it was taken over by Eicher Motors and is now an Indian brand. With the takeover, the brand motto was changed to “Made like a gun, goes like a bullet” to add a sense of speed and freedom to the existing brand values. The brand, in India was initially seen as synonymous with power, authority and affluence. The initial customers were mainly army men and other law enforcement officials which gave it an aspirational value. Now the brand values have shifted focus to being associated with independence, adventure, life and travel. All off Res branding activities revolve around communicating this message. Brand communication is tricky as the brand has to communicate the idea of independence and adventure while maintaining the brands heritage. Royal Enfield’s have an aspirational yet achievabl e image. This means that most emerging markets can be targeted with serious bikers as their prime target demographic. Their first advertisement was “Shaan ki sawaari” which associated owning a RE with the pride of the ownership. After the company decided to rebrand in the early 2000s the advertisement communicated the
message of “Jab bullet chalet oh duniya raasta de” which associated the brand not only with pride, but the respect and awe one earned with owning a Bullet, one of REs top product. Being a cult brand RE does not use television and outdoor hoardings as a general rule. They follow the philosophy that the showroom and product is the advertisement for the brand. Thus, RE showrooms have designs and are in primary locations such as Khan Market in Delhi and Linking Road in Mumbai, which encourages footfall from their target demographic. Also, Royal Enfield’s have been widely portrayed in movies as the ‘hero’s preferred vehicle increasing its aspiration value in a country that runs on Bollywood. RE uses a lot of social media and online marketing. They run a trip story blog through their website which encourages bikers to travel and write about their experiences. They have used social networking sites such as Facebook and their website to successfully generate a feeling of community among the consumer groups. This ensures that people in case of repurchase will always Royal Enfield over the competing brands. Royal Enfield invests heavily in consumer engagement programs through their Royal Enfield Mania channel. The brand organizes adventure and fun filled trips such as the Himalayan Odyssey, Rider Mania which further the sense of belongingness to the brand. A major share of publicity is garnered through these events with extensive media coverage and display in automobile shows. Brand communication is majorly done through the RE Bikers Club, which is a highly coveted club among the youth. A lot of young RE owners have purchased RE bikes with a motive to be a part of these exclusive clubs. RE also has a range of merchandise such as helmets, t-shirts, gloves, riding jackets and boots, made exclusively for owners of Royal Enfield.
Sales and Distribution The company claims to be driven by deep knowledge of the customers’ needs with an understanding of the cultural variation to be able to provide a more holistic set of offerings to the customers. A/c to Eicher Motors , most recent annual report (FY 2015-16), Royal Enfield sold 5,08,099 units of motorcycles in 2015-16, registering an annual growth of 56.4% as compared to 2013-14 sales of 2,07,653 motorcycles. Of 2015-16 sales, 9,309 motorcycles were sold in international markets seeing an annual growth of 16.4% over 2013-14. (Refer to Exhibit 8). Domestic Business
The same annual report mentions that Royal Enfield has significantly expanded and upgraded its distribution network throughout India. In the year 2015-16, it said to have added nearly 100 new dealerships taking the total dealership network numbers to over 500. The present figures for the same is over 600. (Refer Exhibit 10) The company dealers are equipped to help customers several ways, which included sale of motorcycles and gear, supply of spare parts and servicing of the motorcycles, all being made present at the same dealer. The company talks about an initiative to upgrade all its dealerships to inculcate its new “Brand Retail Identity”, which provides for creating a store ambience that showcases the company’s natural strengths and the promise it mention s extensively as a part of their promotion named “Pure Motorcycling” ( Refer to
Exhibit 7, 11), which has resulted in highly differentiated look of the stores securing more customers and thus the sales.
International Business
Royal Enfield operates extensively in markets outside India as well. It has a dealership presence in 60 countries, excluding India as of August 2016. It offers its servicing services in 57 of these of countries. The Genuine Part Distribution though is just limited to India. Royal Enfield is present in the developed countries, including the UK, the US and in Europe as a maker of modern classics for many years. However, it believes markets in Latin America and South east Asia will be its market drivers. In the year 2015-16, the company in its annual reports that it had set up 100% subsidiaries in North America and Brazil to cater what it describes to be as one of the most important markets in the world and one of the biggest motorcycle markets in the world, respectively. It has also setup twelve exclusive Royal Enfield stores which includes five in Colombia, two in London and one each in Jakarta, Bangkok, Paris, Madrid and Dubai. (Refer Exhibit 12). These stores would pioneer the sales, marketing and riding plans and initiatives of the company. Retail Redesign
The company takes inspiration from its brand philosophy in working out a new ambience of its retail stores which derives close similarity to the ambience and planning in the living room of an ardent motorcycle aficionado. The space in these retail dealership stores also puts in showcase the entire range of Royal Enfield motorcycles and gears. The gears on display range from apparels, accessories to various protective gears including helmets, jackets, riding trousers, t-shirts, pit shirts, boots, gloves, etc. The customer finds the merchandising and the product display quite interesting. These places add up in serving as an interaction arena for motorcycling enthusiasts and their conversations. (Refer Exhibit 9) The whole idea behind this revolves around the “highly differentiated” retail experience the company seeks to create. Sales Structure
The primary unit of the sales organization in Royal Enfield are its dealers and salespersons spread all over India, divided into four regions - North, East, South and West, which is headed by Regional Managers. Between these two, they have, Territory & Area Managers. They all are headed by a National Head of Sales. The four regions are subdivided into according to the states those region comprise, which get further subdivided into dealerships according to the market size and industry. Each territory contains such two to three dealerships.
Way Forward: 2016 and beyond As described in their annual report 2015-16, Royal Enfield aims to “Own the ‘Pure Motorcycling’ mind space globally” with the emphasis on “Protect and grow India along with Focused strategic international thrust”. In future, the company will work along the lines to “Deliver exciting and evocative new motorcycles”
The report highlights that the company exceeded its own expectations, both in revenue and profit, in the previous year. A sense of phenomenal growth comes from the fact that sales rose from 52000 in 2010 to 500000 in 2015. This was possible because they never followed their competitors; instead, they created their own niche which led to this exceptional achievement. Continuing with the same approach in future, Eicher Motor’s management aims to transform Royal Enfield into an organization led by its f ront-end customers rather than being driven by engineering innovations, a methodology followed by other automotive firms. But this shouldn’t be inferred as company’s negligence to importance of engineering and manufacturing in driving up the sales. This decision is only put forward to bring forth how the company will take its future engineering decisions – Based on where the consumers want the brand to go to! The driving force behind all strategic management decisions will be to offer a holistic product to its customers to give them an unparalleled experience, unlike offered by any other potential rivals. Since Indian economy is growing at a fast clip and median age distribution leaning towards the age of 25, the demand for mid segment motorcycles will continue to grow. With an optimistic mindset and aim of continuing with the current growth rate, Royal Enfield has estimated its 2016-17 sales at 675000 motorcycles. Its target is to be the world no. 1 in the mid-sized motorcycle category. But the management feels that the Classic motorcycle is now losing its novelty value and they need to prepare themselves for the new phase for the company. The recently introduced Himalayan motorcycle is part of that strategy. The Himalayan has been built for the Indian market, while the upcoming project will have all that a global buyer will seek from the brand. With exclusive stores already opened up in malls and high streets in India, the Hindu Business Line also reports the company’s plans to go global. Coming to the R&D expansion plans, they are planning to invest close to Rs.600 crores to set up two technical centers, one for product development to enhance their manufacturing capacity and second channeled towards market development activities across geographies. In its most aspiring undertaking till date, the UK’s research Centre is likely to launch its most powerful 600-650CC twin cylinder motorcycle next year, to serve the biking enthusiasts of the US and Europe. To push it share in foreign markets, future plans include setting up a marketing and distribution subsidiary in the US - the largest 2 wheeler marketplace when it comes to revenue. Following from the excerpt of an interview by company’s CEO, Siddhartha Lal, “The Company will take a four stage approach in its foreign foray. First step would be to become a relevant player in foreign market. Second, It wishes to emerge as a segment leader. Then, it wishes to expand the size of the market. And finally, churning out to be a big player in motorcycle market”
Exhibits Exhibit 1:
Comparison between Sales volume of Harley Davidson and Royal Enfield
Source: “Quartz India website”, February 22, 2015, http://qz.com/348552/how-royal-enfield-won-over-the-indian-motorcyclist-and-now- looks-unstoppable/ Exhibit 2:
Sales volume data of Royal Enfield from 2002 to 2014
Source: “Quartz India website”, February 22, 2015, http://qz.com/348552/how-royal-enfield-won-over-the-indian-motorcyclist-and-now-looks-unstoppable/
Exhibit 3:
Domestic Market Share Vehicle Wise 2015-16
Exhibit 4:
Motorcycle Player wise Market Share
BRAND
2011-12
2012-13
2013-14
2014-15
2015-16
Hero MotoCorp
55.8
53.2
51.8
52.9
52.4
Bajaj
25.5
24.4
20
16.5
17.7
HMSI
7.7
11.8
15.8
16.4
14
TVS Motors
6.2
5.5
5.5
6.2
6.7
4
1.2
1.9
3
4.7
0.8
3.9
5
5
4.5
Royal Enfield Others
Source: “Hero MotoCorp continues to dominate motorcycles market”, May 20, 2016, https://www.crisilresearch.com/industryasync.jspx?serviceId=5&State=null#storyId#119896#sectionId#2646#news FeedId#undefined
Exhibit 5:
Player wise Market share in Premium segment FY 2014-15
BRAND
PERCENTAGE
Bajaj
35.2
Enfield
22.2
Yamaha
13.5
TVS
11.6
HMSI
8.1
Hero MotoCorp
5.8
Others
3.6
Source: “Hero MotoCorp continues to dominate motorcycles market”, May 20, 2016, https://www.crisilresearch.com/industryasync.jspx?serviceId=5&State=null#storyId#119896#sectionId#2646#news FeedId#undefined Exhibit 6:
Sales of Enfield bikes of Eicher Motors from FY 2010 to FY 2014
350000 300000 250000 200000 150000 100000 50000 0 2010
2011
2012
2013
Sales
Source: “Eicher Motors Annual Report”, March 31st, 2014, http://www.eicher.in/uploads/1427358485_Downloads_AnnualReports_AR2K14.pdf
2014
Exhibit 7:
Royal Enfield 350cc complete motorcycle experience
Source: “Eicher Motors Website”, 2016, http://www.eicher.in/
Exhibit 8:
Sales CAGR of Royal Enfield
Source: “Eicher Motors Annual Report”, March 31st, 2015, http://www.eicher.in/uploads/1427358485_Downloads_AnnualReports_AR2K15.pdf
Exhibit 9:
Royal Enfield gear store
Source: “Eicher Motors Website”, 2016, http://www.eicher.in/
Exhibit 10:
Distribution network of Royal Enfield across Indian states
Source: “Pro Kerala Website”, 2016, http://www.prokerala.com/bikes/royal-enfield/dealers/
Exhibit 11:
Interview of company CEO regarding sales experience
th
Source: “The Hindu Business line Website”, January 30 2014, http://www.thehindubusinessline.com/specials/auto-focus/we-will-create-a-pure-motorcyclingexperience/article5635517.ece Exhibit 12:
Global presence of Royal Enfield
Source: “Eicher Motors Investors presentation”, 2015, http://www.eicher.in/uploads/1449031031_eicher-27-11-2015.pdf
Exhibit 13: “Everybody makes way for a bullet” Advertisement
Exhibit 14: Travel Story Blog
References:
http://www.eicher.in/uploads/1466253126_eicher-annual-report-2015-2016.pdf http://royalenfield.com/aboutus/overview/ http://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/royal-enfielddomestic-sales-jump-34-in-june/53016539 http://www.thehindu.com/business/Industry/royal-enfield-records-50-sales-growth-in2015/article8054792.ece https://royalenfield.com/motorcycles/thunderbird-500 http://www.business-standard.com/article/management/40-years-ago-and-now-royal-enfieldrode-straight-into-a-need-gap-114111201429_1.html http://www.royalenfieldblog.com/history-royal-enfield/ https://wethriveindia.wordpress.com/tag/royal-enfield-case-study/ https://royalenfieldbullet.wordpress.com/about/ http://www.business-standard.com/article/management/40-years-ago-and-now-royal-enfieldrode-straight-into-a-need-gap-114111201429_1.html http://www.royalenfieldblog.com/history-royal-enfield/ https://wethriveindia.wordpress.com/tag/royal-enfield-case-study/ https://royalenfieldbullet.wordpress.com/about/ http://www.eicher.in/uploads/1449031031_eicher-27-11-2015.pdf http://www.eicher.in/uploads/1466253126_eicher-annual-report-2015-2016.pdf http://www.thehindubusinessline.com/specials/auto-focus/we-will-create-a-puremotorcyclingexperience/article5635517.ece http://www.prokerala.com/bikes/royal-enfield/dealers/ http://www.slideshare.net/vinayksh/sales-and-distribution-project http://economictimes.indiatimes.com/industry/auto/news/two-wheelers/motorcycles/royalenfield-sets-up-direct-sales-subsidiary-in-the-us/articleshow/48516887.cms
