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Group Members:

Narayanan S
Kapil Manchanda
Shruthi Gowda
Vivek R
Marketing Plan for
A motorcycle
manufacturing company
based in Chennai.
Founded in 1955 as
Enfield India.
In 1994 Eicher group
bought into Enfield India
and it named it Royal
Enfield India.
Oldest motorcycle
company in the world.
The Problem (Year 2000)

Despite the bikes fan following the motorcycle division
was making losses.
The sale of bike was down to 2000 units a month against
the plant capacity of 6000.
The senior managers and specially Siddartha lal
(promoter of Eicher Group of companies) of Eicher
Motors were given final chance to revive the loss making
Royal Enfield- their motorcycle devision.
Else options were to shutdown or sell of Royal Enfield.
The Way Out and objective of Marketing Plan

To mordernise the bikes to appel to a wider customer
base.
Challenge in Marketing plan
Mordernise the bikes without taking away their unique
identity.
The risk was that Royal Enfield will lose traditional fans
intead of gaining new ones.
As the existing customers wanted Royal Enfield just the
way they had always been.

Target Segment and CEO Perspective
We did not want to go down to commuters route but
instead look at the liesure segment, Ravi Chandran
CEO.


Government Enthusiast Lifestyle Trip Lovers
Police Classic style Independent Long ride lovers
Security Forces Reliability Passionate
Himalaya and
mountain trip
lovers
Masculanity Modern youth
Royal feeling
Product Strategy:

Old Legacy models: 350cc, 500cc

Cast Iron engine. (Separate gearbox and oil sump design, prone to
oil leak)
Engine pronounces vibration and beat which Royal-Enfield customer
love.
Gears on the right side. (Opposite to most of the bikes.)
Vintage look.


Marketing Mix
Product Strategy:

New engine models: 350cc, 500cc
Aluminuim engine. (Hydraulic tapets, fewer moving parts, no oil
leakage problem, better fuel efficiency) used since 2010.
By physics it was not possible to bring the same vibration and beat.
Obviously, it did not produce the vibrations and the beat of the old,
but international experts were consulted and sound mapping carried
out for over 1,000 hours to ensure it produced the maximum
rhythmic vibrations possible and a beat, which was 70 per cent of
the amplitude of the original. (Classic example of brand
management.)
Gears on the left side (As most of the bikes.)
Vintage look retained.


Marketing Mix
Product Strategy:

Internal process changes to improve the quality of the
components:

The shop floor processes are fine tuned to meet the customer
expectations.
A field quality rapid action force to bridge the gap between
customer expectations and the reality.
Results: Warranty claims fell sharply.



Marketing Mix

Pricing Strategy:

High price: premium segment.
Prices: Classic 350, 346cc, 4 stroke: Rs. 1,17,900
Classic 500, 499cc, 4 stroke: Rs. 1,55,000
Thunderbird 350, 346cc: Rs. 1,11,000



Marketing Mix

Distribution strategy:

19 depots.
Over 250 dealers
Over 150 authorized service centers in India.
19 area offices.
Single production facility in Chennai.



Marketing Mix

Promotional strategy and Brand management:

Television and poster advertisement campaigns.
Trip: Marketing campeign
Social groups
Community, Events and Rides.

All above promotional strategy did big impact on cutomer
attraction and engagement and are explained in detail in
next slides.


Marketing Mix



Brand Management: Advertising Strategy-
Trip, believe that each individuals
relationship with his or her bike is unique.



Brand Management: Advertising
Strategy- Leave Home



Brand Management: Advertising
Strategy: Handcrafted
twitter:
http://twitter.com/#!/royalenfield
Official Twitter feed of the oldest production motorcycle in
continuous production ever - Royal Enfield.

Facebook:
http://www.facebook.com/royalenfieldfans
Official fan page of Royal Enfield, to get the latest royal enfield
news, trivias, upcoming rides and also provides details how to post
complaints and rules for engagement. Eg:
customerservice@royalenfield.com
=> This is big thing in terms of avoiding the negative feedbacks on
social sites and routing them through right channel.
Customer Service and Promotion
Strategy: Social Platform
Community:
Bullet-in board: Discussions on buying and other technical stuff
related to Royal Enfield.
Such as: Which Royal-Enfield to buy, Fuels and oils etc.

Trips: The stories of adventurous trips of Royal-Enfield travellers.
Such as: NH Bike riders trip from Goa to Kanyakumari,
Solo trip to Sikkim etc.

Rides: A complete Rides calendar with rides hosted by Royal-Enfield
or fans.

Customer Service and Engagement
Strategy: (In RoyalEnfield.com)
Events: Hosted by Royal-Enfield



Customer Service and Engagement
Strategy: (In RoyalEnfield.com)
Last Year Royal Enfield Sales Growth







53,000
70,000
0
20,000
40,000
60,000
80,000
2010-2011 2011-2012
Royal Enfield Annual Sales
Growth Plans and new challenges:

Now, Royal-Enfields capacity utilization is 100 per cent.
Yet there is a six months waiting period for deliveries.
The plan is to double the capacity to 1.5 lakh bikes.
A new plant is planned at Oragadam, Chennai. The plant
will be set up on a 50 acre plot with new state of the art
PT and CED painting facility, with robotic application of
liquid paint, and a vehicle assembly facility to start
with. It is slated to start production in November 2012.
Challenges from iconic global brands such as Harley-
Davidson which has entered the Indian market.


By:
Narayanan S
Kapil Manchanda
Shruthi Gowda
Vivek R
Marketing Plan for
Thank you and Ride safe

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