You are on page 1of 2

CUSTOMER INSIGHT:

Royal Enfield motorcycles have been the go-to big bikes for the masses in India for years now. The
brand has made the feeling freedom, of owning a high-displacement motorcycle accessible to
thousands in India. The brand's engagement with its customers through rides and events further
strengthens the relationship. And hence, Royal Enfield motorcycles are not just a product to their
owners. During the lauch of Thunder bird x series the president of Royal enfield ruby said "Human
truths don't sit in age, demographics or regional bottlenecks" and hence for those who want to
express themselves and look a little different in the crowd, welcome the Thunderbird X.

The two little but extremely relevant 'secrets' are what make Royal Enfield what it is today. The
brand has been around for a century and has still maintained the authenticity that we saw in the first
motorcycle that was shipped to India for the Army. So many people in India, thousands of them
have grown up with a Royal Enfield motorcycle in their families.

ST POSITIONING:

Royal enfield is focusing on the bikers in the age gathering of23-35 years old these individuals are
working official or understudy or armed force and police on account of metropolitian urban areas.In
district headquarters they are focusing on rich and intense individuals.

A handmade powerful classic bike for Indian roads, in metropolitian cities and district headquarters
it is positioned as adventure and leisure bikes and in small towns royal enfield is a bike which shows
the symbol of status of your in society. Classic Chrome and Desert storm is the example for leisure
bikes.The New Himalayan 400cc is one of the example of Adventure bikes.

Strength Of Royal Enfield :

Strong Brand Name: Royal Enfield has created a strong brand identity in the market and has been
able to gain credibility in the market from its customers. Royal Enfield is has made itself a cult brand
and is desired by many.
Strong Research and Development: Royal Enfield has an in-house R&D centre which takes care of
further enhancement of the product portfolio of the company and makes sure that the reliability of
the consumer is maintained. Royal Enfield has recently invested Rs. 600 crores in two more R&D
units, one in India and one in the UK.

Strong Growth: Royal Enfield has grown at over 50% in the last 5 years globally. Such strong growth
increases revenue and profits for the company which can be further invested in improving and
enhancing product portfolio.

Expanding Global Market: Royal Enfield bikes are currently exported to more than 30 countries
worldwide and due to increase in demand, Royal Enfield has invested heavily in setting up
manufacturing facilities in the UK.

Weaknesses of Royal Enfield :

Expensive: Royal Enfield targets a niche market of motorcycle lovers who are ready to pay a
premium for the brand. But, it misses out on a large market that is willing to buy a low priced variant
of Royal Enfield.

Low Mileage: Royal Enfield produces large volume cylinder bikes (high CC) which have more
capability to burn more amounts of air and fuel and thus they give low mileage as compared to low
CC bikes.

Opportunities of Royal Enfield :

Growing Market: The two-wheeler market is growing worldwide which provides an opportunity for
the company to increase customer base and sales globally.

Expand Globally: Royal Enfield needs to expand its export markets to more countries in the Europe,
Africa and Asia. The demand for such bikes is increasing in these markets and Royal Enfield can take
advantage of such an opportunity.

Higher Disposable incomes: The Disposable income of middle-class people in countries like India has
been on the rise. Thus, those individuals who could not afford a Royal Enfield some years ago are
now in a position to buy one.

Threats of Royal Enfield :

Strong Competition: Royal Enfield competes with many bike companies in the cruiser segments
worldwide. It also competes with high utility bikes in the market. Such competition in the market
reduces market share.

Competitor Analysis: RE found out there is gap in the market of Adventure bike in India and
Relaunch it products but now the game phase has changedAnalysts predict that at least a dozen
motorcycles will rival Royal Enfield models by the close of this decade. Here's a look at some of the
upcoming Royal Enfield competitors – Hero X pulse 100,Bajaj Dominar Adventure,KTM 30
Adventure,Husqvarna Vitiplen 401,JAWA 350HC,Benelli leoncino. Most of the upcoming competitors
royal enfield are concentrating on Adventure segment, Jawa is similar like Royal enfiled even it has
follower base and it was using the same strategic positioning of Royal Enfield

You might also like