Royal Enfield

Industry:
Motorcycle industry has a market value of Rs 1021 billion in Indian in 2017-18. This industry
is growing at a CAGR of 9% since 2010.
Royal Enfield:
Royal Enfield has seen the great turnaround from the period of 2007 to 2018. It is known for
high brand loyalty in the two-wheeler segment and can be compared to Apple products in
electronic gadgets in terms of brand loyalty.
Motorcycles are segmented into economy, executive and premium. Royal Enfield plays in the
premium segment. Bajaj is market leader in the premium segment with market share 29% and
Royal Enfield is the second largest player with 28% market share followed by Yamaha, TVS,
Hero respectively. But Royal Enfield is the most profitable company with its Net profit margin
around 27% whereas for Bajaj -16% and Hero MotoCorp -11%
Royal Enfield has seen a major turnaround from 2006 to 2008. Its annual sales volume grew
from 32,600 in 2006 to 8,20,500 in 2018. The strategy followed by Royal Enfield which helped
to increase market share from 1 % to 4%
1. Product Mix: Royal Enfield operates mostly in 350 CC segment and more than 90%
of Royal Enfield sales comes from the 350 CC bikes and there is no competition in this
segment. These 350 CC bikes are more versatile as they can have both off-road and on-
road drives.
2. STP:
It has segmented its customers based on psychographic characteristics like social status
and people looking for adventure. It targets people in age group 25-45, working
executives and travellers. It has positioned itself as all-weather bike which provides
both adventure and comfort. As 350 CC is a heavy bike and difficult to ride, only few
people use it while many people aspire to use it.
3. Brand Building:
Royal Enfield’s advertising spend is only 0.6% of sales whereas the industry average
is around 2.5%. It rarely advertises itself in Television and it created the feeling of
belongingness and cult across the users of Royal Enfield.

1. https://www.thehindubusinessline.com/specials/auto-focus/royal-enfield-and-the-new-
mantra-of-selling-bikes/article8253554.ece
2. https://www.bikewale.com/best-cruiser-bikes-in-india/
 Royal Enfield Rider Mania:
Royal Enfield organises “Rider Mania”, a series of adventure events and fun trips in
major parts of the country every year for Bullet lovers. The event creates a union among
all the bikers. News channel cover the entire event creating a large publicity.
Royal Enfield Clubs and Committees:
The first Royal Enfield Riders club started in December 1995 to promote unity among
all the Bullet riders. These clubs promote the feeling of brotherhood, and organises
trips, training sessions for improving riding skills. These clubs also take part in Rider
Mania. These clubs are also the reason for high promotion of Royal Enfield as people
want to join these clubs.
Social Media Marketing:
On the official website of Royal Enfield, it organises contest like Best Trip Story
Writing Competition to engage people in sharing their experiences. There are groups
on social media platform like Facebook where the riders share their stories.
Because of all these branding, Royal Enfield has created a feeling of brotherhood and
is cult in the youth.
Exports:
In 2015, RE started its main positioning on international markets. It started exporting in Us and
then expanded in Germany and UK markets. By 2019, its exports increased from 6000 units to
21000 units.

With all the brand engagement activities, Royal Enfield succeeded in becoming not just a
product to their but creating an emotional connection with the bike.

1. https://www.thehindubusinessline.com/specials/auto-focus/royal-enfield-and-the-new-
mantra-of-selling-bikes/article8253554.ece
2. https://www.bikewale.com/best-cruiser-bikes-in-india/