ROYAL ENFIELD

Made like a gun goes like a bullet

Contact Details:
(A Unit of Eicher Motors Limited)
Tiruvottiyur High Road,
Tiruvottiyur,
Chennai - 600 019.

FLASHBACK..

WHAT IS A BULLET???
Its basically a cruiser bike tailor made for Indian roads.
Powerful (very very powerful, with her massive 350,500 cc engines)
slow speed, thumping sound and nearly 190 kg bodyweight
.Moreover, its a feeling

ROYAL ENFIELD ARMY CREW:

STANDARD 350 UCE
STANDARD 500 UCE
CLASSIC 350
CLASSIC 500
THUNDERBIRD 350
THUNDERBIRD 500
Electra
RE CAF RACER (CONTINENTAL GT)

THE BEGINNING OF NEW ERA

The royal ride, faced a serious trouble during early 2000s
Customers started to complain about continuous engine troubles and
heavy maintenance costs & the companys market shares went down
Fuel consumption rates were also very high
Socomplete changeover was inevitable!!

SO..
The new royal enfield avatar was introduced in the market!!
30% less parts and 30% more power compared to old version.
A perfectly unbeatable UCE (Unit Cast Engine) with maximised performance
and reduced maintenance cost
introduction of electronic fuel injection
Twin spark engine( made of aluminium, instead of cast iron)
Unique right legged gear box to new universal left gear box
Self start(in selected models)
Aerodynamically stable design
Fuel efficiency nearly about 50 kmpl.

MANUFACTURING TECHNIQUES:
Royal enfield adapted the LEAN MANUFACTURING method for new
production. (POKA-YOKE)
Also adopted the KAIZEN TECHNIQUE in process
One of their uniqueness is TOTAL PRODUCTIVE MAITENANCE in their plant

PRODUCTION PROCEDURE:
Like cococola, royal enfield also maintains a secrecy in its production
procedure.
Still, the company provides a quick factory visit for bull lovers. (every
second Saturday, 10-11.30 am.) which costs Rs.600/person!
The factory visit shows us the three main steps in production:
The paint shop
Engine assembly
Vehicle assembly

JUST IN TIME
raw material
delivery
From

Thiruvattiyur to
oragadam
plant

Engine
assembly:
Welding dept:
Joins the
dismandled
pipes and parts
together
(using robot
cells)

All the engine

components
are assembled
and tested
here.
(semi
automaticfixtures,
hydraulic;
tuning,
manual)

Main assembly:
The paint shop:

All the metallic

and plastic
components
are painted,
plated and
powder coated
(manual- the
free hand
painting is well
known)

Painted parts,
engine,
electrical
system, tyres,
brakes,
alignment
correction etc
are done in this
stage.
(conveyer
mode of
assembly, FMS)

Pre delivery
inspection (PDI)
Visual
inspection of
paint and fit of
parts.
Dynamometer
test: 0-60kmph
Brake,
alignment,light
, exhaust
emission.

ENGINE ASSEMBLY:

THE PAINT SHOP:

The uniqueness of Bull includes the flawless freehand drawing.

VEHICLE ASSEMBLY:

CHANGE IN STRATEGY AFTER

2000:
Marketing mix
Product: upgraded with technology efi, left gear, aluminium engine
cylinder, but still maintained the royal VINTAGE looks!
Place: the market of Royal Enfield can basically be divided into two
segments:
1. metropolitans: Tier 1 and Tier 2 cities
2. Small cities: tier 3 and district head quarters.

Promotion: it is promoted in MENs magazines, adventure magazines, local

prin medias, fans clubs, social medias etc

 Price: it is a premium product, hence demands a premium price

Segmentation, Targeting and Positioning (STP)
Segmentation: it is segmented as leisure and cruiser bike. though in Tier3 and
district head quarters market it is associated with the social/ status symbol.
Targeting: bikers in the age group of 25-45 years of age. They are working
executives in the case of tier 1& 2 cities and young, rich and powerful in terms of
tier 3 and DH
Segment size and profile: RE has a niche segment in motor bikes with a demand
of about 2.5 L bikes per year. It comes in premium and cult category with a niche
market aimed at lifestyle bikes among customers.

MARKET PERFORMANCE
Price elasticity:
Moderate price elasticity. (since they have monopoly in the cruiser bike market)

Market shares:

95%

In the premium segment of motorbikes, Royal Enfield has nearly

in 350,
500 cc motorbikes, and now, they are trying to attack the higher segments of this
category (700, 1500 cc bikes)

Expansion success:
The annual capacity was about 60k units per year, but due to exponentially
increasing demand, RE started to think about new expansion process, building
new factory having capacity of 1.5 L per annum. (with capital of 1.5 billion)

 Profitability:
The profit after tax of RE is about 1.064 billion at the end of FY 2014 which has
almost doubled from FY 2012 (0.529 billion) and it is forecasted that it will touch
about 2.30 billion mark by the end of FY 2015.

Share holder value:

Predictable revenue:
Having 95% of the market share in the premium segment and also a waiting period
of 6-12 months shows that the demand for RE increasing constantly predicted the
growth of 100% by the end of FY 2015.

Stock price:
The stock price of Eicher Motors ( parent company of RE) has increased from Rs
2841 to Rs 4126.9 per share.

P/E ratio: 76.97 (EPS: Rs 53.61)

 The company is ISO 9001, ISO 14000, and ISO 16949 certified.
The TNS survey has rated ROYAL ENFIELD as the BEST CUSTOMER
SATISFACTION bike in cruiser category.

SALES OVERVIEW:
2012
2013

78000 units.

82000 units.

2014
2015

112000 units.

2.5 lakhs.

2016

4.5 lakh units.

Chart Title
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
40999

41729

42094
Series 1

42460

FUTURE EXPANSION PLAN:

In india, RE have a niche market for premium bikes more than 250cc. In
future, they are going to expand their market segment to 750 cc premium
bikes also.
Now, Siddhardha lal, the CEO and managing director of Eicher Motors,
hired Pierre Ter Blanche, head designer of Ducati motors.
Apart from the plants at Oragadam and Thiruvottiyur, Royal Enfield
bought 50 acres plot in Vallam Vadagal, for future expansion needs.

BRAND BUILDING ACTIVITIES:

Advertisements: RE rarely uses tv, radio and other media for its
promotion.
Branding through Royal Enfield Rider Mania:
To keep users engaged with the brand, RE organises adventure trips, in which
HIMALAYAN ODYSSEY is the prominent.
Bullet clubs (every districts)

Branding through Royal Enfield Riders Club and Communities

It promotes the brotherhood feeling for riders, organising trips, training sessions,
social activities etc

Online media and Social media marketing:

Through their website, RE organises trips and encourage people to share their
stories.
Social websites like FB and TWITTER have their verified accounts, for their

 Royal Enfield Merchendise:

Following the Harley Davidson model of branding, RE also started selling their
riders jackets, biking gears, helmets etc through their exclusive showrooms.

Branding through film industry!!

Think about lalettan.

In AARAM THAMPURAN
Going to fight with Keerikkadan Jose
In a Splendor Bike. :p
HELL!!!!

THERE IS NO SUBSTITUTE FOR THE AWESOME BULL FOR SHOWING OFF!!!

IMP. TERMS IN ACADEMIC POINT

OF VIEW
Lean manufacturing.
Kaizen technique
Total productive maintenance
Poke yoke
Just in time.
Business process re-engineering (BPR)
Niche marketing/ market

THANK YOU!!!!

Abhimanue V S
9567827146