Royal Enfield

PROJECT REPORT ON

SUBMITTED TO-

(__________________) PREPARED BY-

Dr.KUNAL GAURAV T.KRUSHIKUMAR

DATE-17TH MAR’16 SECTION-C

ROLL NO-109

INDEXICBM-SCHOOL OF BUSINESS EXCELLENCE

INTRODUCTION

PROFILE OF COMPANY

HISTORY

BRAND PORTFOLIO

HISTORICAL PERSPECTIVE

PRESENT ADVERTISEMENT

CONCULSION

ICBM-SCHOOL OF BUSINESS EXCELLENCE

INTRODUCTION:

Indian automobile industry

The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.

India’s automobile sector consists of the passenger cars and utility vehicles, commercial vehicle, two wheelers and tractors segment. The total market size of the auto sector in India is approximately Rs 540 billion and has been growing at around 8percent per annum for the last few years. Since the last four to five years, the two wheelers segment has driven the overall volume growth on account of the spurt in the sales of motorcycles. However, lately the passenger cars and commercial vehicles segment has also seen a good growth due to high discounts, lower financing rates and a pickup in industrial activity respectively.

Major automobile manufacturers in India include Maruti Udyog Ltd., General MotorsIndia, Ford India Ltd., Eicher Motors, Bajaj Auto, Daewoo Motors India, Hero HondaMotors, Hindustan Motors, Hyundai Motor India Ltd., Royal Enfield Motors, TVSMotors and Swaraj Mazda Ltd.With the economy growing at 9% per annum and increasing purchasing power there has been a continuous increase in demand for automobiles. This, along with being the second largest populated country, makes the automobile industry in India a very promising one

.Indian two wheeler market

Ever since the old Lambretta scooter was replaced with the flurry of vibrant two-wheeler models, Indian two wheeler industry has seen a phenomenal change in the way they perceive the Indian market. Two wheeler manufacturers are now competing in an ever growing consumer market by bringing out new products and features. The country has now grown into the second largest producer of two wheelers in the world.

Currently there are around 10 two-wheeler manufacturers in the country, and they areBajaj, Hero, Hero Honda, Honda, Mahindra/Kinetic, Royal Enfield, Suzuki, TVS, andYamaha. There have been various reasons behind this growth. Because of poor public transport system, the citizens found convenience in two wheelers. Added to this is the fact that the average Indian still does not have the purchasing capacity for a more expensive, four wheeler.


The Indian two wheeler industries can be divided into motorcycles, scooters and mopeds. The consumer has changed his preference from mopeds to scooters and then to motorcycles. The trends seen in the past few years include female’s increasingly using two-wheelers for their personal commutation and various two wheeler manufacturers designing vehicles specially to cater to needs of this segment.

One of the earliest revolutions in this industry was Kinetic’s introduction of the concept of electronic/self-start and automatic gears which made two wheelers comfortable and useable by women, when compared to old Bajaj Chetak advertisements which showed middle aged females riding a Bajaj Chetak scooter.

A recent trend in the industry has been electric vehicles, which mostly leverage on their eco-friendliness and low operating costs, but is still not accepted well due to the lack of reputation of the manufacturers and lack of trust on technology, which is still being perceived in the nascent stages, especially battery and inverters which prove to be very expensive components.

TVS recently leveraged this opportunity by launching a hybrid model of their non geared scooter – TVS Scooty. The end of the last decade saw Bajaj taking a radical decision to do away with the Scooter range and completely concentrate on motorcycles, especially stating change in customer’s preference as the main reason.

The customers are left without a choice in most cases than to migrate from the traditional scooters of the Indian family to the all youthful bikes that one’s son rides to college.


PROFILE OF ROYAL ENFIELD:

Royal Enfield was the brand name under which the Enfield Cycle Company (founded 1893) manufactured motorcycles, bicycles, lawnmowers and stationary engines. The first Royal Enfield motorcycle was built in 1901; the original British concern was defunct by 1970. The Enfield Cycle Company is responsible for the design and original production of the Royal Enfield Bullet, the longest-lived motorcycle design in history.

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.

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 original Red ditch, Worcestershire-based Company was dissolved in 1971. Enfield of India continued ICBM-SCHOOL OF BUSINESS EXCELLENCE

https://en.wikipedia.org/wiki/Small_wheel_bicycle

https://en.wikipedia.org/wiki/Chennai

https://en.wikipedia.org/wiki/Royal_Enfield_(India)

https://en.wikipedia.org/wiki/Royal_Enfield_Bullet

https://en.wikipedia.org/wiki/Stationary_engine

https://en.wikipedia.org/wiki/Motorcycle

https://en.wikipedia.org/wiki/Brand_name

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 favor of Enfield of India, who now produces motorcycles under the Royal Enfield name

HISTORY:

In 1893, the Enfield Manufacturing Company Ltd was registered to manufacture bicycles, adopting the branding Royal Enfield.

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 down tube, Enfield built their first motorcycle in 1901 with a 239 cc engine.

In 1907, Enfield merged with the Allays & Onions Pneumatic Engineering Co. of Birmingham, and began manufacturing the Enfield-Allay automobile.

By 1910, Royal Enfield was using 344 cc Swiss Motosacoche V-Twin engines, or large-displacement JAP and Vickers-Wellesley engines.

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.


https://en.wikipedia.org/wiki/Minerva_(automobile)

https://en.wikipedia.org/wiki/Jules-Albert_de_Dion

https://en.wikipedia.org/wiki/Quadracycle

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) In 1921, Enfield developed a new 976 cc twin, and in 1924 launched the first Enfield four-stroke 350 cc single using a Prestwick 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.


https://en.wikipedia.org/wiki/File:Royal_Enfield_3,5_pk_425_cc_1913.jpg

https://en.wikipedia.org/wiki/File:Royal_Enfield_RE_201_225_cc_1923.jpg

Second World War (1939–1945)

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 side valve, 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 Royal Enfield WD/RE, known as the Flying Flea, a lightweight 125 cc motorcycle 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 was 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.


https://en.wikipedia.org/wiki/File:Thinktank_Birmingham_-_object_1982S03575(2).jpg

BRAND PORFOLIO:

Royal Enfield Bullet 350

One can be a part of classical prominence by having a ride on Royal Enfield Bullet 350, a macho bike which is stylish as well. The brawny is laden with plenty of attention grabbing features like traditional designing, astonishing power of 18 bhp from air cooled 4 stroke engine, large wheels, and better sitting for superior riding.

This has been the classical offering from Royal Enfield and the engineering and the design has remained unchanged over the years. It has remained the flagship product with the other products being perceived more as derivatives of this motorcycle rather than standalone products

Bullet 500 (Cast Iron)Royal Enfield Bullet 500 is a classic bike having vintage styling. The bike has hand painted pin stripes, a 4-speed transmission, double leading shoe front brake and was touted as the powerhouse model with a whopping 27 bhp output. While the bike looked mostly similar to the Standard 350cc offering, its bigger engine made it a more potent vehicle to have on long rides.


Royal Enfield Bullet Electra 4S

Royal Enfield motorcycles were renowned for having problems starting because of their CB Point Ignition systems. In an attempt to break this negative image, the company came up with Electra. Electra was in effect a Standard 350cc but had a CDI Ignition system. This paved the way for the newer bikes from Royal Enfield which now have Digital TCI as a part of the standard package.

Royal Enfield Lightning 535

Looking for an image makeover back in 2001, Enfield came up with Lightning. It was a Limited Edition 535cc motorcycle. The single-cylinder, air-cooled 535cc engine was the largest SCAC engine for any motor cycle in the world. The bike received limited acceptance amongst users and was discontinued after 2006 but it succeeded in rebuilding the power-bike image of Royal Enfield amongst the enthusiasts.


Royal Enfield Bullet Electra 5S

With Electra 4S receiving quite a lot of acceptance, Royal Enfield decided to add a few more features to align themselves with the more contemporary manufacturers. From a right and side 4-speed gear shift, they moved to a left-hand side 5-speed gear shift. Disc brakes also made an entry, with the 280mm disc being the largest in the country. This has been one of the most successful models from Royal Enfield and was to a largeextent responsible for the revival of the brand during the turn of the millennium.


Royal Enfield Bullet Machismo

Machismo is Royal Enfield’s “chrome monster”. Resplendent with chrome, they are available in both 350cc and 500cc variants. They were the first bikes to have the now legendary Lean Burn AVL Engines. These were the result of Royal Enfield’s collaboration with an Austrian Engine manufacturer, AVL.

Royal Enfield Thunderbird Bike

Royal Enfield Thunderbird is a powerful bike which for the first time broke off from the ‘Bullet’ look. They were modeled similar to the cruisers available worldwide and were positioned as adorers’ choice. It has developed into a strong marquee itself and continues to remain a brand name despite engineering changes that went into it. It started as a 350cc AVL Single-Spark Engine. Today the Thunderbird Twin spark is a 350cc Unit Construction Twin spark Engine with about 20 bhp output.


Royal Enfield Classic

In 2008, Royal Enfield unveiled its latest offerings – the Classic 350 and the Classic 500.Styled in the vintage 50’s look, they came with18 inch tires, Unit Construction engines and the look and feel of a vintage. Priced at 1.3lakh and 1.7lakhs respectively, the 350cc and the 500cc variants are slowly gaining popularity amongst users for the lower ride height, the greater power and above all, the vintage feel of the bike..

HISTORICAL PERSPECTIVE:

In 1920s

As the company is targeting for the bicycle in those days because the people were unaware of the bikes so they done advertising strategy on cycles in the newspaper ad


In 1930s

The birth of bullet bike was on 1932 so to bring awareness about the bullet the company gave an ad in the newspaper

In 1950s

After independence they released the bullet bikes on the India roads and named it as 1947 bike. In order to says that we got freedom from Britishers and do enjoy on Royal Enfield bike


In 1960s

In those days they came up with the new models and do modified for the existing bikes.The above ad says that the new lauch of the bike into market. It seems to be a was compitition conducted by Royal Enfield company.

In 1970s


The above advertisement shows the three different types of bikes available in that company. In those days the first product placement is done by Royal Enfield film called “SHOLAY”

In 1980s

In this ad the company says about the different features about the bike,

how they perform.

In 1990s


Present advertisement

Present new existing model is Royal Enfield Continental GT. This video says that if the men want to go to any adventurous trip for those people this type of bike is most preferable

2015 Royal Enfield Classic 500

This advertisement says that the real man can drive bullet bike, which means they more concentrated about the emotional feelings of the customer


Conclusion1. The buying behavior is governed predominantly by the need for Power and respect for the iconic Brand.

2. The internal locus of control is by and large dependent on the Sense of Control the motorcycle offers and also on the Sense of Freedom that users associate with it.

3. Users are mostly Professional Males, 25-45 years of age, including some students.

4. Users’ display mostly Value-Expressive behavior and Ego-defensive behavior is not seen amongst responses.

5. People who choose not to buy Bullets do so because of high price,Maintenance and spares hassles and also because some feel they are not built for it.

6. Advertisements are rarely recalled and are highly ineffective amongst non-Bullet riders.

7. Bullets are perceived as low on cost-effectiveness, but high on ride comfort and reliability.

8.Improved Sales and Service Network by Franchise or dealership on ProfitSharing Basis

Royal Enfield doesn’t have a very good sales and service network. MarketingThe product is not limited to sales only. There should be extensive network ofservice centers so that customers have a very good bullet experience Thecustomer should get the service network similar to that of Maruti –Suzuki.Also a helpline number should be launched, and on calling this, customers canavail of service even in some remote localities

9. Marketing Communication should focus on satisfying the needs for Respect,Power and Comfort.

10. A non-flamboyant well-built brand ambassador may be chosen to representthe Brand. John Abraham was choosen as Brand ambassador for 1 yr but somemacho personality like- Sanjay Dutt or Akshya Kumar should be chosen togive a young and adventurous personality to the brand. They should displaybullet in some action movie, as it was shown in Sholay to attract the youngtowards it.


11. RE should tie up with adventurous students or corporate executives andarrange adventurous trips on weekends to locations- like Cherapunji, lonavaletc. brand Amabsaddor should join them occasionally to promote the event.Television Commercial spots are more remembered than Print Advertisementseven when they are over 6 years old. So users should be given the chance tovideo shoot their trips and share with other TV viewers. Lucky users should beoffered a chance to meet the Brand executive on next trip

12. They should tie-up with adventurous brands like Thumps Up or Mountain dewto give a complete revamp of branding.

13. The RE Apparels available on their exclusive stores should be made availablein college counters to make them available to the young students. It will createawareness among youth and more of them will feel proud using the apparelslike- bag, jacket, boots etc

14. They can plan to export RE to other developing economies like- Brazil, Chinaand Russia to capture the market thereRoyal Enfield should concentrate on building around the iconic status it alreadyenjoys if it plans to attract customers migrating to other manufacturers.


Royal Enfield

Automotive

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