BRIEF

The report talks about what is Royal Enfield’s Business

Model, how are they using Porter’s 5 Forces Framework in
their business and how different strategies are being used
by them to get their business established.

PROJECT REPORT FOR

BUSINESS POLICY &
STRATEGIC
MANAGEMENT
Submitted by:-
Daksh Agarwal
Arnav Taparia
Submi'ed To: Swastik Vashisht
Prof. Chandrashekar PK Vani Srivastav
Rajath KS
Ansh Das
Ishaan Sood
 Contribution of each group member in the project
Arnav Taparia - 74052100104
Swastik Vashisht - 74052100533
Vani Srivastava - 74052100529
Daksh Agarwal - 74052100180
Rajath K.S. - 74052100227
Ishaan Sood - 74052100353
Ansh Das - 74052100256
1
1. Product Differentiation & Focus
Strategies
2. Suggestion
3. Conclusion
4. Document Compilation with Images
5. Power Point Presentation
6. Interpretation & Analysis
1. Globalization Strategy & Customer
Centric Approach
2. Suggestion
1. SWOT Analysis
2. Business Model of Royal Enfield
1. Blue Ocean Strategy, Innovation &
Technological Strategies
2. Findings
3. Conclusion
4. Executive Summary
5. Aims, Objectives & Scope of the Study
6. Suggestions
7. Introduction
8. Document Compilation with Images
9. Power Point Presentation
10. Interpretation & Analysis
1. Sustainable & CSR Strategies
2. Digital Presence Strategies
1. Company Introduction
1. Porter 5 Forces Model
Executive Summary

The venerable motorcycle manufacturer Royal Enfield has used a variety of techniques and
tac>cs to become a major force in the motorcycle market. The following outlines how they
apply their SWOT analysis, Porter's Five Forces framework, business model, and strategies:

1. Business Model: The creation and marketing of vintage-looking motorcycles is the foundation
of Royal Enfield's business strategy. They have been able to develop a devoted following of
customers who appreciate authenticity and craftsmanship because of their commitment to
upholding a classic design and legacy.

2. 2. Framework of Porter's Five Forces:

a. Supplier Power: Due to Royal Enfield's solid relationships with its manufacturers and
suppliers, vital components are frequently supplied in a safe manner.
b. Buyer Power: Royal Enfield has lessened the negotiating power of consumers by
carving out a niche market and encouraging brand loyalty.
c. Threat of New Entrants: The company's storied past, devoted clientele, and robust
brand serve as obstacles to entry for prospective rivals.
d. Threat of Substitutes: Although there are other motorcycle brands, Royal Enfield is
less vulnerable to imitations thanks to its distinctive styling and allure.
e. Competitive Rivalry: While other motorcycle manufacturers pose a threat to Royal
Enfield, the company's brand loyalty and differentiation strategy help to ease the
pressure.

3. SWOT Analysis:
a. Royal Enfield's advantages include a storied past, a recognizable style, and an
enthusiastic riding community. These elements support consumer loyalty and brand
recognition.
b. Weaknesses: The company's narrow product line and comparatively less advanced
motorcycle technology when compared to rivals may be seen as weaknesses.
c. Opportunities: To adapt to shifting consumer demands, Royal Enfield has the chance
to broaden its product offering, enter more foreign markets, and adopt new
technologies.
d. Threats: The operations of Royal Enfield may be threatened by outside variables such
as changing emission standards and recessions. Another possible threat comes from
competition in the motorbike industry.

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 4. Strategies:
a. Heritage Preservation: Royal Enfield stands out from rivals and appeals to a
specialized market because of its dedication to maintaining its heritage and classic
design.
b. Product Diversification: To appeal to a wider range of riding styles and customers, the
company has launched new models like the Himalayan and the Meteor.
c. Global Expansion: Through international market penetration and the establishment
of manufacturing facilities overseas, Royal Enfield has increased its worldwide
footprint.
d. Community Engagement: Riding clubs and events help riders become brand
ambassadors by fostering a feeling of community and customer loyalty.

To sum up, a robust business model based on classic design, good management of Porter's
Five Forces, a SWOT analysis that iden>fies opportuni>es and strengths, and strategic
approaches that value heritage, diversifica>on, global expansion, and community building are
all responsible for Royal Enfield's success. All of these factors work together to give Royal
Enfield its long-las>ng reputa>on in the motorbike industry.

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 TABLE OF CONTENTS

S. No Content Page No.

1 CHAPTER – 01 Background & Introduc>on 5
2 Introduc>on, Recent Economic Development, Nature of Markets 5–6
& Key players of Two – Wheeler Industry
3 Introduc>on & Background of Royal Enfield 7–8

4 CHAPTER – 02 Company Profile 9

5 Introduc>on & History of RE 9 – 11
6 Product Line of RE 11 – 14
7 Business Model of Royal Enfield 15 – 16
8 SWOT Analysis 17 – 19
9 Porter’s 5 Forces Model 20 – 21
10 CHAPTER – 03 AIMs, Objec>ves, Scope 22
11 CHAPTER – 04 Analysis & Interpreta>on 23 -
12 Compe>>ve Strategy – Blue Ocean 23
13 Innova>ve Strategy 24
14 Generic Strategy – Product Differen>a>on 24 – 25
15 Generic Strategy – Focus Strategy 25
16 Digital Marke>ng Strategy 26
17 Globaliza>on Strategy 26
18 Customer – Centric Approach 27
19 Industry Analysis 27 – 30
20 CHAPTER – 05 Findings, Sugges>ons & Conclusions 31 – 32
21 References 33

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 CHAPTER – 01 BACKGROUND & INTRODUCTION

INTRODUCTION
Riding a two-wheeler is the only way to experience freedom and being at one with nature. Due
to their affordable price, easy loan repayment options, small, manageable size, and low
maintenance requirements, two-wheelers are preferred by Indians. Indian streets are crowded
with two-wheeler riders of all ages. The public views motorized two-wheelers as a status
symbol. As a result, in India, we would witness stylish four-wheelers competing with our
dependable and durable two-wheeler.

RECENT ECONOMIC DEVELOPMENTS:

At a valuation of more than Rs 100,000 million, the two-wheeler market in India is the second
largest in the world. Actions like doing away with licenses, removing quantitative restrictions,
and putting initiatives in place to bring the policy framework into compliance with WTO
requirements have set the industry on a progressive path. With the removal of barriers to
restructuring, the nation's industry has been able to reach its full potential and align with global
development.
The liberalization policies have sparked a steady rise in competition, which has ultimately led
to significant price reductions and modernization in accordance with international standards.
The auto finance companies' aggressive marketing has also contributed significantly to the
increase in demand for automobiles, particularly among middle-class consumers.

NATURE OF MARKET:
The State apparatus effectively controlled the entry of businesses, capacity expansion, product
selection, including capacity mix and technology, in the early years of an industry.
Nonetheless, a significant set of reforms was introduced in 1991 as a reaction to the significant
macroeconomic crisis the economy was experiencing. A period of strict regulation and control
gave way to one of greater liberalization and competition in industrial policy. Two main
outcomes of the policy changes in the two-wheeler industry during these years were that a
significant number of new brands entered the market, forcing the businesses to compete on the
basis of product attributes, and that the weaker players died out, making way for the superior
products of the new entrants.

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KEY PLAYERS IN THE TWO-WHEELER INDUSTRY:
India is home to numerous two-wheeler manufacturers. Hero Honda Motors Ltd (HHML),
Bajaj Auto Ltd (Bajaj Auto), and TVS Motor Company Ltd (TVS) are the three main companies
in the two-wheeler market.
Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML),
Yamaha Motors India Ltd (Yamaha Scooters/Mopeds), Majestic Auto Ltd (Majestic Auto),
Royal Enfield Ltd (REL), and Honda Motorcycle & Scooter India (P) Ltd (HMSI) are some of
the other major players in the two-wheeler industry.
India's two-wheeler types include:
1. Motorbikes
2. Mopeds

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INTRODUCTION

Based in Gurgaon, India, Royal Enfield is a mul>na>onal motorbike manufacturer. With its
original English heritage intact, the Royal Enfield brand is the oldest motorcycle brand in the
world s>ll in con>nuous produc>on. The business has manufacturing facili>es in Chennai,
India.

The Enfield Cycle Company of Redditch, Worcestershire, England, created the first Royal
Enfield motorcycle in 1901. They were also in charge of designing and manufacturing the Royal
Enfield Bullet, the motorcycle model with the longest lifespan in history. Now a subsidiary of
Indian automaker Eicher Motors, the company was originally licensed from the original
English Royal Enfield by Madras Motors, an indigenous Indian company. The Royal Enfield
Bullet, Classic 350, Royal Enfield Thunderbird, Meteor 350, Classic 500, Interceptor 650,
Con>nental, and many more motorcycles with a classic appearance are produced by this
company. Along with adventure and off-road motorcycles, Royal Enfield also produces the
Royal Enfield Himalayan. They use both single- and twin-cylinder engines in their motorcycles.

BACKGROUND

The well-known automaker Royal Enfield specializes in the production of motorcycles. The
company's tagline, "Made Like A Gun," honors its history of producing firearms. The Indian
company Royal Enfield has its main office in Chennai. In 1890, the Enfield Manufacturing
Company Limited was established. It began manufacturing bikes in Redditch,
Worcestershire, England, in 1890 under the name "Royal Enfield." Among the oldest
motorcycles still in production worldwide is the Royal Enfield. There are 394 dealership
locations for Royal Enfield products in India. All 29 states in India and three Union
Territories sell Royal Enfield motorcycles. India is Royal Enfield's largest market, but the
company also exports different Royal Enfield models and variations to more than 50 nations.
The current Royal Enfield business is a division of the venerable Indian automaker Eicher
Motors Limited.

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Fig. 1 – History of Royal Enfield Motors

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 CHAPTER – 2 COMPANY PROFILE

ROYAL ENFIELD INDIA LTD

A Royal Enfield bike is a classic bike with power for leisure riding, and the company leads this
market segment in India by leaps and bounds. Its exquisite selection of motorcycles offers a
one-of-a-kind motorcycling experience by fusing power, comfort, and ruggedness with
distinctive styles.

THE BEGINNING
Under the Royal Enfield brand, the Enfield Cycle Company produced stationary engines,
motorcycles, bicycles, and lawnmowers from its Redditch, Worcestershire, facility. The slogan
"Made like a gun" and the logo consisting of a cannon both honor the heritage of the weapons
industry. In 1890, the Crown granted permission for the use of the Royal Enfield brand.

HISTORY OF THE COMPANY

English mid-19th century In the small village of Hunt End, close to the Worcestershire town of
Redditch, the George Townsend & Co. firm first opened for business. The company specialized
in machine parts and sewing needles. While hopping from one business opportunity to another
in their early days of entrepreneurship, they happened upon the pedal-cycle trade.
They had no idea at the time that it was the start of a legend being created. George Townsend
& Co. soon began producing bicycles under its own brand.
And in 1893, under the Enfield Manufacturing Company Limited, its goods started to bear the
name "Enfield" and the trademark "Made Like a Gun." It was the marquee.

INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors (formerly Enfield of India)
FOUNDED 1893, as Enfield Manufacturing Co. Ltd.
DEFUNCT 1971
HEADQUARTERS Redditch, Worcestershire, England
KEY PEOPLE Founders Albert Eadie and Robert Walker Smith
PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

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PROFILE OF THE ORGANIZATION

Indian company Royal Enfield is the creator of the well-known Bullet brand. Royal Enfield
(India) is one of the oldest motorcycle companies, having been founded in 1955. It comes from
Royal Enfield, a British manufacturer located in Redditch. Chennai, India is the home base of
Royal Enfield. Bullet bikes are renowned for their strength, handling, and tough appearance.
For the Indian Army, it began in India. The 350cc bikes were assembled in Chennai after being
imported in kits from the UK. Following a few years, the company added the 500cc Bullet to
its lineup and began producing the bikes in India at Pandit Jawaharlal Nehru's insistence. Bullet
quickly gained popularity in India. Bullet gained notoriety for its unmatched stability, raw
strength, and tough appearance. It appeared custom-built for Indian highways. The country's
motorcycle riders always wanted to drive it. The Army and Police officers particularly enjoyed
it. In 1990, Royal Enfield forged a partnership with the Eicher Group, one of India's top
automotive conglomerates, and the two companies amalgamated in 1994. In addition to
motorcycles, the Eicher Group also manufactures and markets commercial vehicles, tractors,
and automotive gears.
New systems and technologies are constantly being incorporated into Royal Enfield
motorcycles. When the Indian government imposed strict emission regulations in 1996, Royal
Enfield was the first motorcycle manufacturer to comply. It was one of the few businesses in
India to receive the Whole Vehicle Type Approval (WVTA) for compliance with EU
regulations. As of right now, Royal Enfield is thought to be the world's oldest motorcycle model
still in production, while Bullet has had the longest production run.

THE EARLY YEARS

With the introduction of a small motorcycle equipped with a 2 HP V twin Motosacoche engine
with Swiss roots in 1909, Royal Enfield shocked the motorcycle community. The following
model, introduced in 1911, had the popular Enfield 2-speed gearbox and a 2 HP engine.
The JAP 6 HP 770 CC V twin with sidecar combination debuted in 1912. This motorcycle was
the one that popularized the name Enfield.
In 1914, Enfield introduced its own engine for the 3 HP motorcycles. They were painted in the
standardized Enfield color scheme, which featured black enameled parts and a green tank with
gold trim.

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BETWEEN THE WARS

When World War I broke out, Royal Enfield sent the Crown consignments of their six-
horsepower sidecar Outfit motorcycles with stretchers. Along with the motorcycle, there was
a Vickers machine gun sidecar attachment that could be used to shoot down low-flying aircraft.
In addition to winning a motorcycle contract for the Imperial Russian Government, Royal
Enfield supplied a significant quantity of motorcycles to the British War Department.
Two new 350 cc motorcycles with JAP engines, two versions of sidecar combinations with
eight HP Vickers engines, and four versions of the 2 HP two-stroke motorcycle were among
the models Royal Enfield offered in 1924 as the factory expanded. The 1930s Great Depression
had an impact on Royal Enfield as well. While demand for motorcycles fluctuated, the
company continued to plod along, producing bicycles at the same rate. In the early 1930s, a
fully enclosed motorcycle model called the Cycar made its debut.

Like other manufacturers of the era, Royal Enfield was asked by the British government to
design and produce military motorcycles during World War II. The WD/C 350 cc SV, WD/CO
350 cc OHV, WD/D 250 cc SV, WD/G 350 cc OHV, and WD/L 570 cc SV were the models
made for the military. The Royal Enfield WD/RE, also referred to as the Flying Flea, was one
of the most well-known Enfield models. It was a lightweight 125 cc motorcycle intended to be
dropped with airborne soldiers via parachute. Following the war, the factory carried on
producing the models created during the conflict, and the fabled J 2 model—the forerunner of
the fabled Bullet—appears. That same motorcycle, which conceivably held the distinction of
having the world's longest production run.

PRODUCT LINE:

Fig. – 2 Products line of Royal Enfield

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Fig. – 3 Royal Enfield Classic

Fig. – 4 Royal Enfield Bullet

12
Fig. – 5 Royal Enfield ThunderBird

Fig. – 6 Royal Enfield Himalayan

13
 Fig. – 7 Royal Enfield Interceptor

Fig. – 8 Royal Enfield Continental GT

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BUSINESS MODEL OF ROYAL ENFIELD

Royal Enfield's moved from a Business-to-Business (B2B) to a Business-to-Consumer (B2C)

strategy entails the company moving from largely supplying other businesses to directly
catering to individual consumers. This change underscores Royal Enfield's ambition to develop
a powerful consumer-focused brand, enhance product quality, and increase its presence in both
home and foreign markets. By focusing on the B2C strategy, Royal Enfield hopes to forge a
personal connection with motorcycle fans, fortify client connections, and draw on the legacy
of its renowned brand to build a devoted and varied consumer base.

B2B BUSINESS MODEL OF ROYAL ENFIELD:

Ø Portfolio of Products: Royal Enfield is a manufacturer of motorcycles in the vintage

and classic styles. The Bullet, Classic, Himalayan, and other types are among the many
in their product selection. Customers who value a fusion of tradition and current
engineering will find these motorcycles especially tempting because of their classic
appearance and distinctive riding sensations.

Ø Customer Engagement: Through several projects and events, Royal Enfield actively
interacts with their client base. To help their clients feel a sense of community, they
organize riding groups, rallies, and other events. A network of devoted riders who share
a common affection for the brand is formed because of this sense of community, which
promotes brand loyalty.

Ø Retail Presence: To make sure that consumers can easily access their motorcycles and
related products, Royal Enfield runs a vast network of dealerships and retail locations.
These dealerships are more than just places to make sales; they are made to offer a
whole brand experience, letting potential customers check out various models, go on
test drives, and discover the brand's background and culture.

Ø Direct Sales: Royal Enfield sells their motorcycles directly to customers through its
network of dealerships. Customers can visit these locations, speak with trained
personnel, look around the vehicles, and take test drives. To streamline the purchase
and increase its accessibility to a larger consumer base, the business might also offer
financing options.

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 Ø Accessories & Aftermarket: Royal Enfield offers a large selection of aftermarket items
and accessories made especially for their motorcycles. Custom seats, baggage racks,
performance improvements, and other items are among these offerings. Customers can
personalize their bikes thanks to this personalization, which improves the ownership
experience and lets them design a motorcycle that suits their preferences.

Ø Customer Assistance and Service: To guarantee a pleasurable ownership experience,

Royal Enfield offers customer assistance and runs service facilities. They also
make sure spare parts are easily accessible to assist customers in properly maintaining
their motorcycles. This dedication to post-purchase service raises client happiness and
loyalty.

Ø Global Expansion: Although Royal Enfield has its roots in India, the company has made
efforts to grow globally, focusing on B2C sales. To serve a global consumer base, they
have opened dealerships and retail locations in several nations, including the US, the
UK, and others.

Ø Innovation and Modernization: To maintain its position as a leader in the rapidly

changing motorcycle market, Royal Enfield has gradually added contemporary
technology and features to its motorcycles. Improved engine performance, safety
features, and connectivity options are part of this effort to adapt to shifting consumer
tastes and uphold strict rules, such as those governing emissions requirements.

In conclusion, Royal Enfield's B2C business plan is based on developing a powerful consumer-
focused brand, utilizing their historic brand heritage, actively engaging with clients, providing
an original product portfolio, establishing a global presence, and embracing modernization. A
devoted and varied clientele is cultivated as a result of their community-building initiatives and
the classic designs' enduring appeal.

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SWOT ANALYSIS

A SWOT Analysis of Royal Enfield, a well-known motorcycle manufacturer, can provide

insights into its internal strengths and weaknesses as well as external opportunities and threats
in the market.

STRENGHTS

1. Strong Brand Name: Royal Enfield has established a powerful brand identity and image and
grown significantly in credibility with its clientele. Many people want Royal Enfield because
it has become so well-known and a cult brand.

2. High-Quality Standards: Royal Enfield's excellent standards are a big part of why it has such a
strong brand reputation. To satisfy its clients, Royal Enfield only produces the highest Caliber
motorcycles.

3. Strong R&D: Royal Enfield has an R&D department that oversees further expanding the
company's product line and ensuring that the customers' trust is upheld. By spending Rs 600
crores on two additional R&D facilities, one of which is in India, Royal Enfield has been
successful.

4. Strong Growth: Over the past five years, Royal Enfield has grown by around 50%. Strong
growth has led to higher profits and revenue, which can be used to further improve and expand
the product line.

5. Embracing Global Markets: Due to the increased demand, Royal Enfield has made significant
investments in establishing up manufacturing facilities in the UK. Royal Enfield bikes are sold
to more than 30 nations globally.

6. Support from Eicher Group: In 1994, Royal Enfield was formed through the merger of Enfield
India and Eicher Group. Since then, Eicher, one of the top automakers, has backed Royal
Enfield and has contributed significantly to its success on a global scale.

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WEAKNESS

1. Costly: Royal Enfield caters to a specialized market of motorcycling enthusiasts who are
willing to pay a premium for its brand. However, a sizable market that would be interested in
purchasing a Royal Enfield model at a discount is missed.

2. Low Mileage: When compared to high cc bikes, Royal Enfield makes large volume cylinder
(high cc) bikes that have the capacity to burn more fuel and air. As a result, these bikes have
lower mileage.

3. Heavy Weight: Due to the weight of Royal Enfield motorcycles, some customers may find that
it is an issue.

4. Delivery and after-sale services: They are currently being delivered by Royal Enfield 120 years
late. Customers now despise Royal Enfield as a result of this.

OPPORTUNITY

1. Growing Market: The two-wheeler market is expanding globally, giving the company the
chance to boost both its clientele and its revenues.

2. Global Expansion: The business must broaden its export markets and enter more nations in
Europe, Africa, and Asia. In these markets, the demand for such bikes is growing daily, and
Royal Enfield can seize this chance.

3. Higher Disposable Incomes: In nations like India, middle-class groups' disposable income has
been rising. Thus, folks who couldn't afford a Royal Enfield motorcycle a few years ago can
now purchase one. This is one of the primary causes of Royal Enfield's rising sales.

THREATS

1. Strong Rivalry: In the global cruiser market, Royal Enfield faces stiff competition from other
bike manufacturers. Additionally, it competes with high utility bikes on the market. Royal
Enfield's market share decreases because of this market competition.

2. The increase in fuel prices: As was previously said, Royal Enfield bikes have low mileage, so
any increase in fuel prices would have an impact on sales of Royal Enfield bikes.

3. Hatred on social media: Because of Royal Enfield's subpar after-sales support and delayed
deliveries, there is an increasing amount of animosity toward the company in the comment
sections of social networking sites like Instagram. If Royal Enfield doesn't address this as
quickly as possible, it risked damaging its market reputation.

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Fig. – 9 SWOT Analysis

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PORTER'S 5 FORCES MODEL

A framework for examining a company's competitive environment is Porter's Five Forces. A

company's strategy can be guided by the Five Forces analysis to gain a competitive edge. An
industry or market's level of competition, attractiveness, and profitability can all be determined
using the Five Forces.

1) Threat of New Entrants:

a) The motorcycle industry, including Royal Enfield, requires significant capital
investment in manufacturing, distribution, and branding.
b) Additionally, established players like Royal Enfield often have economies of scale and
brand loyalty, making it difficult for new entrants to compete effectively.
c) So the threat of new entrants is relatively low.

2) Bargaining Power of Buyers:

a) Buyers, in this case, are individuals and businesses purchasing Royal Enfield
motorcycles.
b) The bargaining power of buyers is moderate. While there are several motorcycle
options available in the market, Royal Enfield has a strong brand image and a loyal
customer base.
c) However, if buyers perceive better value or quality in other brands, they might switch,
thus exerting some pressure on Royal Enfield.

3) Bargaining Power of Suppliers:

a) Suppliers for Royal Enfield include those providing raw materials, components, and
accessories.
b) The bargaining power of suppliers is generally low due to the large number of suppliers
in the market.
c) However, if Royal Enfield relies heavily on a specific supplier for a critical component,
the supplier might have some power.
d) To mitigate this, companies often diversify their supplier base.

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4) Threat of Substitutes:
a) The threat of substitutes is moderate. Motorcycles can be substituted by other forms of
transportation such as cars, public transport, or bicycles.
b) However, motorcycles offer unique advantages in terms of mobility and fuel efficiency,
which can offset the threat to some extent.
c) Royal Enfield’s classic and vintage designs also cater to a specific market niche,
reducing the immediate threat from substitutes.

5) Competitive Rivalry:
a) The competitive rivalry in the motorcycle industry is high. Royal Enfield faces
competition from both domestic and international motorcycle manufacturers.
b) The industry is highly fragmented, with numerous players offering a wide range of
motorcycle models.
c) Product innovation, pricing strategies, and marketing campaigns are crucial in
maintaining a competitive edge in this environment.

In summary, Royal Enfield operates in an industry with moderate to high competitive forces.
While the brand loyalty and unique design aesthetics provide some protection, the company
needs to continuously innovate, manage costs, and understand customer preferences to stay
ahead in this competitive market.

Fig. – 10 SWOT Analysis

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 CHAPTER – 3 AIMS, OBJECTIVES & SCOPE

AIM

The goals of this project report are to understand how an organization uses various strategies
and what type of business model they have, as well as to use SWOT Analysis and Porter's Five
Forces model in an organization.

OBJECTIVE OF THE STUDY

The following are the study's objectives:

• Research the Royal Enfield Business Model.

• To comprehend Royal Enfield's application of the Porter's Five Forces framework.
• Research Royal Enfield's SWOT Analysis.
• Research the various strategies employed by Royal Enfield.
• To make appropriate recommendations on various strategies employed by them.
• Provide appropriate conclusions and recommendations for findings.

SCOPE OF THE STUDY

The study assisted in learning about the Porter's Five Forces framework and how SWOT
analysis is used in organizational decision making. It also aided in understanding how a
company employs Strategic Management in its operations and in developing a business
strategy. The study also assisted us in understanding how a company's business model is
created, as well as providing us with a variety of information about a company.
This study also benefits management graduates and fellow researchers who want to expand
their knowledge on subjects that may be useful in the future when looking for work.

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 CHAPTER – 4 ANALYSES & INTERPRETATION

COMPETITIVE STRATEGY

Blue Ocean Strategy

While Royal Enfield may not explicitly label its business strategy as "Blue Ocean
Strategy," it has effectively incorporated several strategies that align with the
framework's principles. W. Chan Kim and Renée Mauborgne developed the Blue Ocean
Strategy, which focuses on creating uncontested market space by making competition
irrelevant, as opposed to competing in oversaturated "red oceans." In various ways,
Royal Enfield's business approach reflects these principles.

For starters, the company is known for its one-of-a-kind product offering, which
consists of classic, retro-style motorcycles with distinct designs that stand out in a
market dominated by modern sport bikes. Furthermore, Royal Enfield prioritizes the
customer experience by forming rider clubs and organizing events to foster a sense of
community and belonging among its customers. Another key component of their
strategy is value innovation, which combines traditional style with modern
dependability, providing customers with motorcycles known for their rugged
simplicity.
The competitive pricing strategy of Royal Enfield allows a broader range of customers
to afford their motorcycles, distinguishing them in a crowded field of classic bikes.
Furthermore, the company has expanded its global footprint by entering markets
where retro-style motorcycles were less common, creating new market opportunities.
Finally, their focus on a specific customer segment, namely motorcycle enthusiasts who
appreciate classic design and a unique riding experience, aligns with the Blue Ocean
principles. It's important to note that Royal Enfield's strategies may have evolved since
my last update, but these tactics demonstrate how they've successfully carved out a
unique niche within the motorcycle industry, competing in uncontested market space
and distinguishing their brand from the competition.

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INNOVATIVE STRATEGY

Innovation & Technological Strategy

Royal Enfield, a well-known motorcycle manufacturer, has used a variety of innovative

techniques to solidify its distinct brand identity and maintain a strong market presence. These
innovative strategies, as of my most recent update in September 2021, include technological
and engineering advancements such as the Unit Construction Engine (UCE) to modernize
engines while preserving classic aesthetics, and the introduction of the "Tripper" navigation
system for enhanced rider experiences. Customer engagement and community building are
critical, with Royal Enfield cultivating a strong rider community known as the "Royal Enfield
Brotherhood" through clubs and events, which foster loyalty and feedback. To cater to the trend
of individualization in the motorcycle industry, the brand offers personalization options and
accessories. Their dedication to R&D is evident in ongoing efforts to improve performance,
safety, and environmental sustainability. Furthermore, safety innovations such as dual-channel
ABS and improved braking systems demonstrate Royal Enfield's commitment to rider safety.
This comprehensive approach combines tradition and modernity, ensuring the company's
relevance and resonance with a diverse customer base.

GENERIC STRATEGIES

The strategy used by Royal Enfield were Product Differentiation and Focus Market

Product Differentiation

Historically, Royal Enfield has concentrated on building vintage-looking motorcycles that are
classic and retro in style. They have distinguished themselves from the competition and drawn
a specialized clientele who value the distinctive style and personality of Royal Enfield
motorcycles. With its line-up of products, which includes the vintage and Bullet models, the
firm has managed to preserve a vintage aesthetic and feel.
1. Distinctive Brand Identity: With a heavy emphasis on nostalgia and tradition, Royal
Enfield has developed a distinctive brand identity. They do marketing using a lifestyle-
centric approach that appeals to riders who wish to be a part of the Royal Enfield
community and culture by promoting motorcycle touring and the freedom of the open
road.
2. Classic and Retro Design: The traditional and retro styling of Royal Enfield
motorcycles is well-known, having its roots in the company's older models. They stand
out from more contemporary and streamlined motorcycle to this design concept, which
appeals to riders who value a classic and timeless look.
After the WW-II the single-cylinder OHV 350cc Model G and the 500cc Model J are
the two civilian motorcycles that Royal Enfield has started producing again.

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 Some of the classic and retro motorcycles of Royal Enfield are Royal Enfield Classic
350, Royal Enfield Bullet, Royal Enfield Classic 500, Royal Enfield Classic Chrome,
Royal Enfield Classic Redditch, Royal Enfield Classic Pegasus, Royal Enfield Meteor
350, etc.
3. Customization Options: Royal Enfield provides a wide range of customizations such as
seats, handlebars, exhaust systems, paints, and graphics etc. Customization of Royal
Enfield started in 2013 with Bombay Custom Work first to start the customization.
4. Limited Model Lineup: While some motorcycle manufacturers offer a wide variety of
products, Royal Enfield only offers a small number of models. They can concentrate
on refining their current models and upholding a constant level of quality because of
this emphasis.

FOCUS STRATEGY

One essential component of Royal Enfield's business strategy is their specialist target
marketing. They concentrate on serving a niche market of committed motorcycle fans that
value vintage and classic design as well as a certain kind of riding. This is the way Royal
Enfield uses niche target marketing.

1. Emphasis on Heritage: The company leverages its British origins and rich history,
dating back to the early 20th century. They emphasize the legacy of Royal Enfield
motorcycles, creating an emotional connection with customers who value the history
and tradition associated with the brand.
2. Focus on target segment: It started its operations as a manufacturer of motorcycles for
the Indian Army. As Royal Enfield think that quality should always be overpriced,
Royal Enfield has focused on middle-aged demographics and advertising like those
from the army and vacation agencies. Its premium pricing strategy is used to its superior
items. The company maintains the brand's heritage while providing a robust and
customized product without altering the fundamental design. Therefore, despite the
product's high price, its target market buys it without hesitation.

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DIGITAL MARKETING STRATEGY

To strengthen its online presence and engage with its audience, Royal Enfield employs a
comprehensive digital marketing strategy. This strategy includes social media marketing,
showcasing visually appealing motorcycle content, and cultivating a vibrant online community
of riders and enthusiasts. Maintaining a blog with articles on motorcycle culture, travel, and
maintenance tips, as well as YouTube videos showcasing product demonstrations and ride
experiences, is part of content marketing. SEO (search engine optimization) is used to ensure
that the brand's website appears high in relevant search results. Royal Enfield also uses email
marketing to keep customers up to date on new products and promotions, influencer marketing
to leverage existing fan bases, online advertising for a broader reach, and e-commerce
integration to facilitate online sales. Finally, active customer engagement via responses to
inquiries and comments on social media and the website aids in the maintenance of a positive
online reputation and the development of customer loyalty.

GLOBALIZATION STRATEGY

Royal Enfield’s globalization strategy is centered towards becoming a leading player in the
mid-size motorcycle segment. This strategy has helped Royal Enfield expand its customer base,
diversify its product portfolio, and increase sales in various countries.
1. Localization: Royal Enfield has set up its manufacturing operations in key international
markets, such as Thailand and Brazil, to cater to the respective regional markets. This helps
them to reduce the cost of imports and to respond in a better way to local market demands.
2. Brand Building: Royal Enfield focuses on positioning itself as a premium and lifestyle
brand, targeting motorcycle enthusiasts and those seeking adventure. Royal Enfield
leverages its rich heritage and legacy to build a strong brand image globally.
3. Product Expansion: Royal Enfield aims to cater to all the key international markets by
introducing new models. They have launched motorcycles like the Interceptor 650 and
Continental GT 650.
4. After-Sales Service: Royal Enfield is investing in improving its After-Sales Service network
globally to enhance customer satisfaction and loyalty. This includes offering genuine spare
parts and providing quick and reliable maintenance services.

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CUSTOMER CENTRIC APPROACH

Royal Enfield's client-centric strategy is reflected in its commitment to providing high-quality

products and great customer service. The company understands the importance of listening to
its customers’ needs and preferences. They have a deep understanding of their target audience
and continuously strive to meet their needs and expectations.
1. Customization Option: Royal Enfield understands that its customers have unique tastes, to
cater to this, they offer a range of customization options, allowing customers to personalize
their motorcycles to their liking. They had launched a new customization program called
‘Make Your Own’ which aims to offer complete customization of their motorcycles.
Through app based 3-D configurator, customers can customize Interceptor 650 and
Continental GT 650.
2. Communication: The company believes in maintaining open and transparent
communication with its customers. They regularly update their customers about product
launches, updates, and events through multiple channels. They also have a dedicated
customer support team to address any queries or concerns properly.
3. Product development based on customer feedback: Royal Enfield actively engages with
their customers through various channels, including social media, surveys, and customer
support. These insights are then used to improve and develop their products and services.

INDUSTRY ANALYSIS

Fig. – 11 Two-Wheeler Industry Analysis

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FUTURE STRATEGY

1. Lightweight roadsters and café racing bikes for women

a. Blue ocean strategy targeting underserved women segment.
b. Bikes with less than 26” seat height and low center of gravity – stripped down versions.

2. Continued focus on innovation through r&d expenditure.

a. Models in new categories – touring, sportsters, cruisers in higher end of the segment
b. Improve features in existing bikes – wireless module and infotainment systems.

3. New business development

a. Potential for more revenue from parts & accessories, merchandise (Note 6)
b. Premium dealerships network in tier 1 cities targeting higher end customers.
c. Micro-market strategy – high end products to focus on tier 1 cities only while other
products to focus on growth markets in tier 2 and tier 3 cities.

4. Micro market strategy – continental, interceptor to focus on tier 1 cities only.

a. Move from a manufacturing company to a consumer centric company.
b. Differentiated retail experience – living room of a motorcycling enthusiast.
c. Move beyond just a product to being an experience provider - Himalayan.
d. Create more occasions such as Himalayan Odyssey, Unroad Goa, Unroad Kerala

Fig. 12 – Sales data of Royal Enfield with its biggest competitor

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Fig. 13 – R & D Expenses data of Royal Enfield with its biggest competitor

Fig. 14 – Sales of Mid-weight bikes

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Fig.15 – Market share of Mid-range bikes compared to other competitors

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 CHAPTER – 5 FINDINGS, SUGGESTIONS AND
CONCLUSION

FINDINGS

The fact that Royal Enfield's products have served as a benchmark among its competitors is
due to the strategies they have used as well as their business model, wherein Royal Enfield has
always used a strategy to provide vintage designs with the latest technology, creating a vintage
feel among youth and people who drive their bikes. Royal Enfield has been constantly
launching new products and upgrading their technology.
The study demonstrated how the use of strategies aided Royal Enfield in increasing its market
share and sales.

SUGGESTIONS

Royal Enfield could merge with Harley Davidson as they are the major competitors in the
premium segment motorcycles and also Harley Davidson launched their bikes at a much lower
cost of ₹2,60,000 which is a major threat to Royal Enfield and could lead to decline in the
market share and also could affect the growth of the company. With the merger of these two
companies, they will become the largest market shareholder. Also, Royal Enfield will be
benefitted with the technology of Harley Davidson and can make the bikes having more than
1000cc engines.

Royal Enfield could focus on diversifying themselves by entering into new markets such as
apparels, accessories, spare parts, insurance etc which is to be predicted 20% of the market
share of Royal Enfield in the year 2025. This will help Royal Enfield to encourage people to
buy their bikes and also their apparels. Royal Enfield can promote their new products in the
events that are conducted by them and make them wear the products for the bike rides which
will be a great advertising tool for Royal Enfield and can have a great impact on bike riders as
they have a sense of emotional connects with their bikes.

Advanced Technology: Modern instrument clusters, connectivity, and safety systems are
examples of current technology elements that can be included into a traditional design to appeal
to a wider spectrum of riders. This will help Royal Enfield to attract more customers and mainly
youth as they require modern technology to ease their work and can be a change for customers
which they can find new and interesting resulting in more satisfaction and building strong brand
image.

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Sustainability Initiatives: To keep up with the increased demand for environmentally friendly
products, develop and promote sustainability initiatives pertaining to production processes,
procurement of resources, and eco-friendly packaging. Adopt eco-friendly manufacturing
techniques by cutting down on emissions, energy use, and trash generation throughout
production.

CONCLUSION

Royal Enfield, a well-known motorcycle manufacturer with a rich history dating back to 1901,
has used a variety of strategies to establish itself as a major player in the global motorcycle
market. These strategies have aided not only in brand recognition, but also in consistent growth
and customer loyalty.

Royal Enfield has used a commitment to maintaining its iconic classic design and heritage as
one of its key strategies. This not only distinguishes it from other motorcycle manufacturers,
but also allows it to tap into a niche market of riders who value authenticity, craftsmanship,
and the timeless appeal of vintage motorcycles. The unwavering commitment of Royal Enfield
to its heritage has served as a strong brand identity, establishing an emotional connection with
its customers.

Royal Enfield has prioritized product diversification and innovation in addition to design. The
launch of new models, such as the Himalayan and Meteor, demonstrates the company's ability
to adapt to changing consumer preferences and market trends. Royal Enfield has expanded its
customer base by catering to different riding styles and tastes, appealing to both urban and
adventure enthusiasts.

Another important aspect of Royal Enfield's success is its global expansion strategy. By
expanding into new international markets and establishing manufacturing facilities outside of
India, the company has not only expanded its global footprint but also reduced production costs
and improved delivery times. This global reach has enabled Royal Enfield to reach a larger
customer base and increase its market share.

Furthermore, the company has prioritized customer engagement and community building.
Customers have a sense of belonging thanks to Royal Enfield's rider clubs and events. This
strategy boosts customer loyalty and converts riders into brand ambassadors, resulting in a
virtuous cycle of promotion and sales.
Finally, Royal Enfield's strategies are based on heritage, innovation, global expansion, and
community engagement. These elements have combined to create a distinct and enduring brand
that resonates with riders all over the world. Royal Enfield continues to thrive and maintain its
position as a motorcycle industry leader by remaining true to its core values while adapting to
changing market dynamics.

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REFERENCES

• www.google.co.in
• https://www.royalenfield.com/us/en/home/
• www.wikipedia.com
• https://iide.co/case-studies/royal-enfield-marketing-strategy/
• https://cannibals.digital/what-is-the-marketing-strategy-of-royal-enfield/
• https://www.digiromotion.com/royal-enfield-marketing-strategy/
• https://www.motorbeam.com/royal-enfield-has-an-eye-on-direct-to-customer-retail-
business-model/
• https://www.scribd.com/document/434170356/royal-enfield-project-now
• https://www.mbaskool.com/marketing-mix/products/17261-royal-enfield.html

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