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 FY17 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 FY18.
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 Jun16 Royal Enfield 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 countrys 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 1960s many automobile manufacturers were granted licenses to increase
indigenization of the sector. Till the 1980s 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 Enfields have an aspirational yet achievable 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 Enfields have been widely portrayed in movies as the heros 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 companys natural strengths
and the promise it mentions 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 Motors management aims to transform Royal
Enfield into an organization led by its front-end customers rather than being driven by engineering
innovations, a methodology followed by other automotive firms. But this shouldnt be inferred as
companys 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 companys 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 UKs 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 companys 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

Royal Enfield

1.2

1.9

4.7

0.8

3.9

4.5

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

Source: The Hindu Business line Website, January 30th 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
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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