Table of Contents

HistoryCurrent Scenario1.0 Executive Summary 2.0 Situation Analysis

2.1 Market Summary2.2 SWOT Analysis2.3 Competition2.4 Product/Service Offering2.5 Keys Success Factors2.6 Critical Issues

3.0 Marketing Strategy3.1 Mission3.2 Marketing Objectives3.3 Financial Objectives3.4 Target Markets3.5 Positioning3.6 Strategies3.7 Marketing Program3.8 Marketing Research

4.0 Financials5.0 ControlsFeedbackHall of Fame

ACKNOWLEDGEMENT

We would like to express our special thanks of gratitude to our professor,

Mr. Ajay Ramdasi, who he gave us the golden opportunity to do this wonderful

project on the topic of preparing "Marketing Plan of Royal Enfield

Thunderbird", which also helped us in doing a lot of research and we came to

know about consumer insights and behaviour. We are really thankful to him

for his support and guidance and showing us the way when we were in need.

History

Royal Enfield was the name under which the Enfield Cycle Company made motorcycles, bicycles, lawnmowers and stationary engines. The legacy of weapons manufacture is reflected in the logo, a cannon, and their motto "Made like a gun, goes like a bullet". Use of the brand name Royal Enfield was licensed by The Crown in 1890. The original Red ditch, Worcestershire based company was sold to Norton-Villiers-Triumph (NVT) in 1968.

Royal Enfield produced bicycles at its Red ditch factory until it closed in early 1967. The company's last new bicycle was the 'Revelation' small wheeler, which was released in 1965. Production of motorcycles ceased in 1970 and the company was dissolved in 1971. In 1956 Enfield of India started assembling Bullet motorcycles under license

from UK components, and by 1962 was manufacturing complete bikes. Enfield of India bought the rights to use the Royal Enfield name in 1995. Royal Enfield production, based in Tiruvottiyur, Chennai, continues and Royal Enfield is now

the oldest motorcycle brand in the world still in production with the Bullet

model enjoying the longest motorcycle production run of all time. In 1893, the Enfield Manufacturing Company Ltd was registered to manufacture bicycles. By 1899, Enfield were producing quadricycles with De Dion engines and experimenting with a heavy bicycle frame fitted with a Minerva engine clamped to the front down tube. In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a 770 cc V-twin JAP engine which was raced successfully

CURRENT SCENERIO

Royal Enfield is focusing on improving the quality of the overall product by focusing more in the input materials. They are also planning to concentrate more on their supply chain that will directly improve their product outcome.

In recent times, there have been many complaints by Royal Enfield owners over quality issues and the motorcycle breaking down quite often. Now the company has taken these complaints positively and is making sure that these kinds of issues don’t occur.

Royal Enfield produced and sold 100,000 motorcycles in a year for the first time in 2012. Its sales were up 52 per cent in 2012 at 113,432 units compared with 74,626 units in 2011 despite slowdown in the industry. The company will be launching the Café-Racer and the new Bullet 500 this year and also start manufacturing motorcycles in their new factory at Oragadam, Chennai.

1.0 Market summary

Target market

The new royal Enfield Thunderbird is now targeting the IT professionals and the youths between the age group of 21 to 32 with its attractive cruise look. Earlier it was generally preferred by the age group of 35 to 52 but now it has created its fan following for the youths as well with this new thunder bird 350 n 500 cc variants.

It has also considered foreign tourists as its target market as they find it as a great source of adventure as it is the only cruise bike which in manufactured in India in 500 cc engine capacity.

2.1.1 Market Demographics

The market demographics comprises of two parts which are geographic and demographic factors.

Geographics :

The brand is present across 40 countries, including the US, UK, Germany, Italy, Japan and Australia. Popular Mechanics, the leading American auto and tech magazine, ranked two of its models (the Classic Chrome and the Bullet 500) among its 10 top picks at the progressive international motorcycle show in New York in January 2011. Jay Leno, the acerbic talk show host and an avid car and motorbike collector, added a Bullet Electra Deluxe to his collection in May 2011.

In fact, exports form around 6% of overall revenues. In the countries where it is present, Royal Enfield ties up with a single distributor, who in turn ties up with smaller dealers for sales and after sales service.

Demographics :

Royal Enfield Thunderbird main focus is on the IT professionals, foreign tourists, and the youths between the age group of 21 to 32 with its attractive cruise look.

With its advanced new features and new looks it can attract its focus market and its target customers which is youths.

 Thunderbird

The Royal Enfield Thunderbird is a cruiser style motorcycle produced by Royal Enfield Motors in India. It was introduced in 2000 with an AVL lean burn engine and five-speed gearbox. It is an Indian market model that has never been exported. A 500 cc prototype was also created, which was launched as a production model in October 2012.

In 2009, the AVL semi-unit engine was replaced with the new 346 cc unit construction engine (UCE). The bike was renamed Thunderbird Twinspark owing to the twin sparkplugs in the UCE engine. Other parts have seen only minimal changes from the original Thunderbird. The final drive chain is moved to the right side and it is the most obvious change from the old model apart from the new engine.

In October 2012, Royal Enfield launched the 500 cc variant of the Thunderbird. It features front and rear disc brakes, a 20 L (4.4 imp gal; 5.3 US gal) fuel tank, a split seat, and various cosmetic improvements over the 350 cc.

2.2 SWOT Analysis

2.2.1 Strengths

Size and scale of parent company Effective Advertising Capability High emphasis on R and D Established brand name in the cruiser market Established market distribution channel

Exports motorcycles to 31 countries before and now to 61 countries approx like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany.

Oldest motorcycle brand in the world. Excellent branding and positioning. High performance and comfort. Used on a large scale for military purposes because of its sturdiness.

2.2.2 Weakness

Weight of the motor cycle can be an issue for few customers. Mileage of high cc bikes is an issue.

2.2.3 Opportunities

Two-wheeler segment is one of the most growing industries. Export of bikes is limited i.e. untapped international markets. Tap the urban market. More brand visibility.

2.2.4 Threats

Strong competition from Indian as well as international brands. Dependence on government policies and rising fuel prices. Threat from other competitors.

2.3 Competition

Harley Davidson Hyosung Triumph BMW

2.4 Product Offering

Bullet 350346 cc

1955–present

Originally started manufacturing in 1955 with 350 cc iron-barrel engine and 4-speed Albion gearbox. Bullet Continental sold in USA in 1990s with left shift 5-speed gearbox. Attained the Unit Construction Engine in May 2010. Many sub models introduced during its lifespan like Bullet Superstar. In 2010, the classic iron-barrel engine was replaced with the 350 cc UCE engine. Bullet 350 is the cheapest of all the Royal Enfield models and is devoid of an electric starter, front disc brake, gas filled shocks etc. Only available in black with gold pinstripes

Bullet 500499 cc

1990–present

500 cc Bullet with classic iron-barrel engine. Sold in different variations with both 4-speed and 5-speed gearboxes (Sixty-5). Sold worldwide. In 2009, classic Bullet 500 production has come to an end; But the Classic 500 with the fuel-injected UCE engine is sold as Bullet 500 in almost all international markets.

Thunderbird346 cc

2002–present

Cruiser style motorcycle that was a big hit to command almost half the domestic sales. Attained Euro-4 compliant Unit Construction Engine(UCE) in 2008 and was rechristened Thunderbird Twin spark. Indian Market only model.

Classic 500499 cc

2010–present

With Euro-4 compliant Unit Construction engine. Both Indian and International markets. Sold as Bullet 500 in most International markets. Fuel injection and 18-inch wheels. ES only.

Classic 350346 cc

2010–present

With Euro-4 compliant Unit Construction engine. Indian market only. UCAL\BS29 carburettor.

Classic Chrome

499 cc

2010–present

Variant of the 500 cc Classic with prominent chrome body elements.It was actually manufactured as a replacement of

bullet machismo because of its lack in efficiency in twin spark plug engine.

Electra346 cc

2001–present

Indian market only model with 346 cc classic engine. 4-speed or 5-speed gearbox. Later models with electric start and TCI ignition. Attained the UCE engine in 2010 and is now known as Electra Twin spark.

2.4 Service Offering

Improved Sales and Service network – Franchise Provides repair and service, Service centres available in most of the cities

in a state.

2.5 Key Success Factors

The features and first looks of Royal Enfield Thunderbird 500 will surely make you confident that it is actually a brand new motorcycle unlike the previous versions with somewhat similar features and looks.

CLASSY ATTRACTING LOOK:

The new Royal Enfield Thunderbird 500 with a retro modern look is really classy and eye catching when the big-bird is on road.

The retro modern look is mostly due to adequate dose of chrome on the forks with matt black texturing.

Unlike earlier Thunderbird 350, the gap between the cylinder and the tank is no more in the new Thunderbird 500.

The dashing looks of parked Thunderbird 500 will definitely invite the second citing of the commuters passing.

GLAMAROUS LIGHTS:

The Royal Enfield Thunderbird 500 comes with an upfront single beam projector lights.

The addition of daytime running LED angel rings definitely makes lights glamorous as ever along with its amazing functions.

Digital- Analog Combo Dash & Disc Brakes:

The Analog-Digital dash of Royal Enfield Thunderbird 500 is studded with both mph and kmph markings along with a clock, battery warning sign, twin trip meters, fuel gauge, service reminder and average speed indicators shows graphical data on combo dash.

Moreover, the Royal Enfield Thunderbird 500 has really an imposing stance to the bike with additions of 41 mm front forks and 280 mm twin piston caliper disc brakes

Instrument Cluster and Switch Gear:

At first glance, you will be hard-pressed to associate this instrument cluster with a Royal Enfield, what with its permanent blue back-lighting and LCD digital display.

Beneath these modern touches are the familiar twin circular pods finished in chrome. While the left pod houses the speedometer, digital odometer and twin trip meters, the right pod houses the tachometer and other tell-tale lights.

Surprisingly for an Indian bike, speed is indicated not only in kilometres per hour, but also in miles per hour.

Other Features:

Modern yet classic design. Superb straight-line stability. Good handling.

2.6 Critical Issue:

Pricing (500cc variant). Difficult to maintain. Too heavy. Daunting kicks start. No proper channel structure. Limited number of Royal Enfield zones. Sub-par braking capability. Customer need to visit the authorised service centre if they face any

issue in their bikes, But in the previous model they can get it repaired from the unauthorised service centre also.

3.0 Marketing strategy of Thunderbird 500

As a company, we promote the culture of ‘keep riding’; riding is our culture and what we believe in.

In line with this thought, 50 to 60 rides take place every month in our dealership outlets.

It is through such experiential activities that we aim to expand the segment.

Our new Thunderbird 500 is the ultimate highway cruiser; as people start riding it more, they will definitely fall in love with it and want to buy this bike.

3.1 Mission

Customers are the integral part of the Organization, Creating a Family of Bikers Bond.

3.2 Marketing Objectives

All our marketing activities are simple and focus more on one-on-one interaction with customers.

Thunderbird does very well in IT markets such as Chennai, Coimbatore, Bangalore, Mangalore, Pune and also Mumbai, as these customers want to come out of their stressful lives.

This is our readymade target segment. We need to ensure that they experience our bikes.

For this, we have the first ride experience available at our dealerships. We are sure once people experience the joy of this bike, they will buy it.

3.3 Financial Objectives

We are hoping to grow by 40-50% and cross 100,000 units in a year. The Chennai-based maker of legendary motorcycles is working towards

commissioning a new plant (at an investment of Rs 150 crore) that will increase the capacity from the current 100,000 numbers to 1.5 lakh.

This is expected to bring down the long waiting periods many RE motorcycle buyers have to endure.

3.4 Target Markets

Royal Enfield said it was targeting IT professionals in the leading metros and various cities for its new launch -- Royal Enfield Thunderbird 500.

'The 20-30 age group people are our main customers. We are selling the bikes mainly in metros and cities likes Hyderabad, Bangalore, Thiruvananthapuram and Kochi where there is a large IT crowd'

The company was looking at new markets like Sri Lanka which has just opened up for the 450 cc bikes.

3.5 Positioning

While initially it was mainly a machine for the police and the military, it went on to become quite the male icon.

Royal Enfield Thunderbird 500 Positioned at the practical and affordable end of the highway cruiser market.

Royal Enfield Thunderbird 500 is positioned itself as a bike for the boys who turn into men.

3.6 Marketing Network

You can feel the pulse of your customers, only if you get close to them. This thought process has driven Royal Enfield to set up has a wide network of 11 Brand Stores, 250 dealers in all major cities and towns, and over 200 Authorized Service Centers. The Company also exports motorcycles to 42 countries like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany, Argentina and many other countries through 40 importers and over 300 dealers across the globe.

3.7 Strategies

The Thunderbird 500 is a great upgrade for an existing Thunderbird owner; also there are many who have not experimented or tried out our bike.

For this purpose, we have many kinds of activities for IT companies. For example, we take bikers of other brands to ride along with us and experience our bikes for themselves.

In Chennai, we do such experiential activities in companies such as American Express and Wipro with people who ride other bikes.

We take them on our bikes, then they exchange bikes, after which they feel this is the only bike they can ride.

It is done for our existing customers and their friends as well. We mainly use retail media and our website, so our latest campaign is

present on YouTube, which is the biggest touch point for our target audience, along with our website.

3.8Marketing Program

Pricing

Thunderbird 500 will offer superior, worthful, and a standard pricing. The new Thunderbird 500, targeted at the highway cruising buffs is

priced at Rs 1, 82,571 (on road Mumbai).

Distribution

In 2009, we had 140 dealers, today we have 237 and we are expanding.

We are also tying up with new dealers who are Royal Enfield riders. They come with a fresh passion and keep the ‘Keep riding’ culture alive in our country.

The distribution will aim at providing 1.8 lakh units to reduce the waiting time of the customers.

Earlier it was only 80,000 units.

Promotion

We don’t use TV to advertise. We use automobile and lifestyle magazines, which we feel is the best

way to talk to our target group. We are a brand that believes in engaging customers directly. We have marketing activities like rides for the Rann of Kutch and

Southern Odyssey. We also started the Bhutan ride and Nepal ride. Our main aim is consumer engagement and how to increase consumer

engagement. Royal Enfield also organizes and supports many activities, events and

rides across the country. Most prominently the Rider Mania – an annual gathering of Royal

Enfield riders from all over the country and the Himalayan Odyssey, the largest motorcycle ride over some of the toughest roads and highest mountain passes in the region of Himachal and Ladakh.

Entertainment sources- movie ‘Jab Tak Hai Jaan’, adding brand value, promotional events at the showroom, word of mouth

Product/Service

Masculinity, thrill and adventure will be the key relationship drivers for the bike.

Responsive, comfortable, stable and controllable

Customer/Client

Responsiveness, integrity, and mutual cooperation and respect will be the key relationship, with focus on developing a long-term rewarding relationship, without creating dependence on each other.

3.9 Marketing Research

We listened to the needs of highway cruisers in India and covered improvements on a variety of fronts – range, ergonomics, looks, braking, night riding visibility, luggage carriage capability, even clothing and accessories.

The latest version of Royal Enfield Thunderbird 500 was first revealed during the Auto Expo held in Delhi early in 2012, with the original model having been launched in 2002.

This bike brings a kind of fun for riders, bringing it to the leisure segment of biking.

The company has started producing 10,000 units per month and soon will be operating through one more unit, near Chennai.

Also, Cafe Racer is soon to be expected, most probably in the year 2013 itself.

4.0 FINANCIALS:

To tackle this problem, the company is looking to increase its production that will allow the company to meet the demand and to reduce the actual waiting period. This will eventually improve the sales of the company to its highest level. Today, Thunderbird model has proved to be a cash cow for the company which is why the reason, the company is focusing more on its iconic model. In the present motorcycle markets across the world, there are only few brands that produce classic bikes. Thus, we can expect that the competition for this iconic brand will be less.

FORECAST:

The brokerage has raised its 2013/14 volume forecast for RE from 146k/176k to 176k/255k. It has also raised its 2013/14 EBITDA margins from 15.6 per cent/16.3 per cent to 17.1 per cent/18.3 per cent. It is of the view that the company management has appeared extremely confident of achieving the volume target of 250k units for 2014.

5.0 CONTROLS

Following areas to be closely monitored by the management:1. Inventory2. New plant development3. Feedback 4. Quality5. Supply chain

5.1Implementation: Plant implementation will be based on phased process. The schedule will be made activity wise, market assessments will be done, capacity will be

ensured, initial screening done, develop market strategy, design development, prototype testing and budget.

5.2Marketing Organization

Market managers of important markets might have functional specialists reporting to them

5.3Contingency Planning

Difficulties and risks-EFI, although requires service at an interval, once a problem occurs, will not be solved by a local mechanic.- Delay in production may result in reduced demand.

Feedback

We have visited Royal Enfield showroom at Kothrud and met Mr. Sukant Bhagade, who is the sales manager of the store and he provided us with the following feedback of the Royal Enfield Thunderbird:

The Thunderbird is very much liked by the customers whether they are youths or matured customers.

The riding saddle is comfortable, and the rider’s foot pegs have been shifted forward, making for a more comfortable cruising experience.

The Thunderbird 500 employs a single down tube frame, with an oval-section swing arm used at rear. There’s also a 240mm disc brake at rear, working with a 280mm single front disc for improved stopping power.

Royal Enfield has priced the new Thunderbird 500 at Rs 1, 82,571 (on-road, Mumbai).

The fuel tank is larger, well-proportioned with its filler lid offset at the top. And you now have the option of removing the pillion seat to increase luggage room.

The 500 also gets a revised exhaust, LED tail-lamp and RE logos for its foot pegs.

Thunderbird 500 comes in two types of colors which are matt color and metallic color.

HALL OF FAME

Hall of fame is the poster in which all the achievements of Royal Enfield is mentioned from the time it started details like its 1st bike ,its road trips , its renovations all are mentioned .