The Marketing mix of Royal Enfield analyses the 4Ps of Royal Enfield, including the Product, Price, Place, and Promotions. Royal Enfield is an Indian company of British origins. It is a public company that deals in two-wheelers and is associated with the automotive industry. Vehicles related to this brand are famous for their rugged looks, matchless stability, and sheer power. The brand has been a favorite amongst Police and Army personnel. Royal Enfield was founded in 1909 and merged with Madras Motors in 1955. It is a subsidiary of its Indian parent company, Eicher Motors Limited. Some of its competitors are as follows:
About Royal Enfield
- Type: Indian multinational motorcycle manufacturing company
- Industry: Automotive
- Founded: 1901, Redditch, Worcestershire, England
- Founders: The Enfield Cycle Company
- Headquarters: Chennai, India
- Area served: Worldwide
- Current CEO: B. Govindarajan
- Number of employees: 7,500
- Major products: Classic motorcycles
Table of Contents
Royal Enfield Product Strategy
Royal Enfield is associated with the manufacturing and marketing motorcycles as it deals in the automobile sector. It started its operations as a manufacturer of motorcycles for the Indian Army.
The new Product Mix of Royal Enfield in 2023 is as follows (Source).
- Shotgun 650: This model features a 648cc parallel-twin motor, producing 46bhp and 52.3Nm of torque. It’s notable for its distinctive design, including a Green Drill color option, LED headlamps, a tripper navigation pod, and dual-channel ABS.
- Roadster 450: Positioned as a more road-focused version of the Himalayan 450, the Roadster 450 is expected to have a new 450cc engine with 39bhp and 40Nm of torque. It’s designed with a lower seat height and smaller alloy wheels.
- Bobber 350: The Bobber 350, unlike traditional bobbers, doesn’t feature an extended wheelbase but offers design changes over the Classic 350. It includes whitewall tires, a slightly taller handlebar, LED headlights, and smaller seats with better cushioning. The engine is a 349cc single-cylinder unit.
- Scrambler 650: Joining the 650cc segment, the Scrambler 650 is expected to sport off-road-focused tires and features a 650cc engine. It’s designed for adventurers and long-distance riders.
- 350cc Bobber: This model reimagines the classic 350 with a touch of Bobber aesthetics, featuring white wall tires, higher handlebars, and a removable rear seat. At its core is a 349cc single-cylinder air and oil-cooled engine.
Royal Enfield Place Strategy
Royal Enfield is an Indian company headquartered in Chennai, Tamil Nadu. It has spread its product presence to India as well as several international markets in more than fifty countries like Spain, Switzerland, Singapore, Netherlands, Russia, Malaysia, Korea, Canada, Brazil, France, Germany, Italy, United Kingdom, Japan, Argentina, Australia and the United States. At the onset, the company imported kits for 350cc bikes from the United Kingdom and assembled them in its plant in Chennai. A new manufacturing plant was opened at Oragadam in Chennai by the Royal Enfield Project in 2013, and its factory located at Tiruvottiyur became a secondary production plant that continued manufacturing several models and engines.
In 2015, the company established a dealership and headquarters for the Royal Enfield Manufacturers North American division in Milwaukee, Wisconsin. It started its retail operations in Indonesia in August 2015. Royal Enfield has a strong distribution network that includes services of dealers and stockists so that it reaches consumer markets quickly. Its channel in India includes 394 dealership outlets spread over every Indian state and three Union territories.
The place strategy of Royal Enfield can be summarized in the following points:
- Global Footprint with Strong Indian Roots: Royal Enfield has a strong base in India, with headquarters in Chennai, and Tamil Nadu. They have expanded their presence internationally in over fifty countries, including major markets like the USA, UK, Australia, and various European and Asian countries.
- Expansive Dealership Network: The company has established a comprehensive dealership network, with over 394 stores in India covering every state and three union territories. This vast network ensures easy accessibility for customers across diverse regions.
- Manufacturing Facilities: Initially assembling 350cc motorcycle kits in Chennai, Royal Enfield has since expanded its manufacturing capabilities. They have multiple manufacturing plants, including a new Oragadam, a Chennai facility, and another production unit in Tiruvottiyur.
- International Expansion: Royal Enfield has actively pursued international market penetration. They established a dealership and North American headquarters in Milwaukee, Wisconsin, and launched retail operations in Indonesia, indicating their commitment to global expansion.
- Strategic Distribution Network: The company utilizes a mix of dealers and stockists in its distribution strategy, facilitating effective market reach and ensuring their motorcycles are readily accessible to consumers globally.
Royal Enfield Pricing Strategy
Royal Enfield is an iconic company as it is one of the oldest in the field of two-wheelers. It belongs to the luxury segment and has become a status symbol to motorcycle lovers. Royal Enfield has targeted bike adventurers and youth belonging to a middle-aged group as its target customers that believe in quality over premium pricing strategy at any given time. It has adopted a premium pricing policy for its high-quality products. The company offers a powerful and stylish product with an established and high-profile brand name. Hence, its target customers do not hesitate to make purchases irrespective of high prices.
Royal Enfield’s pricing and marketing strategy also reflects a blend of market-based and value-based approaches, catering to a niche segment in the motorcycle industry. Here’s a detailed breakdown:
- Premium Yet Accessible Pricing: Royal Enfield positions its motorcycles as premium yet accessible. They offer a sense of exclusivity and heritage without the hefty price tag often associated with high-end motorcycles. This strategy appeals to enthusiasts seeking a balance between affordability and a premium experience.
- Segment-Based Pricing: The brand adopts a segment-based pricing strategy where each model is priced according to its market segment. For instance, entry-level models like the Bullet and Classic series are priced more affordably, targeting new riders or those seeking a classic motorcycle experience without a high cost.
- Geographical Pricing Considerations: Royal Enfield’s pricing varies across different geographies, considering factors like import duties, local taxes, and market competition. The pricing is relatively lower in India, their most prominent market, compared to international markets like Europe or North America.
- Cost-Based Pricing for New Models: Royal Enfield uses a cost-based approach for new launches, pricing bikes like the Meteor or the new 650 twins based on production costs and the added value of new features and technology.
- Competitive Positioning: Royal Enfield’s pricing is also influenced by competitive positioning. They strategically price their motorcycles to offer a compelling alternative to other brands in the same engine category, like Harley-Davidson or Triumph, but at a more accessible price point.
Royal Enfield Promotion Strategy
Royal Enfield is the first two-wheeler manufacturing company to obtain a WVTA certificate for meeting norms and standards set up by the European Community. It has adopted an advertising strategy and several promotional policies to market its products successfully in the consumer market. The company has launched innovative ad campaigns with the help of electronic and print media. Its ads are viewed via television, magazines, newspapers, and billboards. Royal Enfield has also launched brand awareness campaigns on social media portals like Facebook, Twitter, and YouTube. It takes part in several shows to increase its brand visibility.
At the Wheels and Waves custom bike show, it revealed its custom bikes in Biarritz, France. The Royal Enfield brand has received several accolades and awards for its works. It won Business Standard Best Company of the Year 2015 and has even been hailed by previous President Barack Obama as one of the best bikes he had come across. One of its famous taglines is Made like a gun, goes like a bullet.
Some Recent Video ads and Print ads for Royal Enfield motorcycles are:
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