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Royal Enfield
Royal Enfield
Royal Enfield
Royal Enfield was a brand name under which The Enfield Cycle Company Limited
of Redditch, Worcestershire sold motorcycles, bicycles, lawnmowers and
stationary engines which they had manufactured. Enfield Cycle Company also
used the brand name Enfield without Royal.
The first Royal Enfield motorcycle was built in 1901. The Enfield Cycle Company
is responsible for the design and original production of the Royal Enfield Bullet, the
longest-lived motorcycle design in history.
Enfield's remaining motorcycle business became part of Norton Villiers in 1967 and
that business closed in 1978. A former subsidiary continues to manufacture Royal
Enfield motorcycles in India. History
George Townsend set up a business in 1851 in Redditch making sewing needles.
In 1882 his son, also named George, started making components for cycle
manufacturers including saddles and forks. By 1886 complete bicycles were being
sold under the names
Townsend and Ecossais. This business suffered a financial collapse in 1891. Albert
Eadie, sales manager of Birmingham’s Perry & Co Ltd, pen makers who had begun
to supply components for cycles and Robert Walker Smith an engineer from
D.Rudge & Co were chosen by Townsend's bankers to run the business and in
1892 a new company was incorporated named Eadie Manufacturing Company
Limited based in Snow Hill, Birmingham.In turn in 1907 after serious losses in their
newly floated Enfield Autocar business Eadie Manufacturing and its pedal cycle
component business was absorbed by BSA. Years later the BSA chairman was to
tell shareholders the acquisition had "done wonders for the cycle department".
Eadie still retained a separate identity when Raleigh bought BSA's cycle interests
in 1957. Enfield
Eadie had won contracts to supply precision parts for fire arms to the government's
longestablished Royal Small Arms Factory at Enfield, Middlesex, now the London
Borough of Enfield with its offshoot in Sparkbrook and had assumed the brand
name Royal Enfield.[citation needed] In 1896 they also incorporated a new
subsidiary company, The New Enfield Cycle Company Limited,[note 1] to handle
much of the cycle work and in 1897 Enfield making complete cycles as well parts
for other assemblers took all the cycle assembly work from Eadie.
Enfield diversified into motor cycles, 1901 and motor cars, 1902. The motor
department was put into a separate subsidiary, Enfield Autocar Company Limited
incorporated in 1906 and established in new works at Hunt End, Redditch.[10]
However Enfield Autocar after just 19 months reported a substantial loss and, aside
from Eadie himself, shareholders were unwilling to provide more capital so in early
1907 Eadie sold his control of Eadie Manufacturing to BSA. Albert Eadie and
Robert Walker Smith had been appointed directors of BSA before the proposed
sale ha been put to shareholders. The new combined BSA and Eadie business
manufactured "military and sporting rifles, (pedal) cycle and cycle components,
motor-cars etc. BSA and Eadie cycle specialities". But there were still minority
Eadie shareholders alongside BSA in 1957.
The business of Enfield Autocar, that is to say the plant and stock, was sold to
Birmingham's Alldays & Onions Pneumatic Engineering. Enfield Cycle Company
took over the Hunt End premises.
In 1955, Enfield Cycle Company partnered with Madras Motors in India in forming
Enfield of India, based in Chennai, and started assembling the 350cc Royal Enfield
Bullet motorcycle in Madras. The first machines were assembled from components
imported from England. Starting in 1957, Enfield of India acquired the machines
necessary to build components in India, and by 1962 all components were made
in India.
Frank Walker Smith (1888-1962), eldest son of Robert Walker Smith, joined Enfield
Cycle Company in 1909. Appointed joint (with his father) managing director in 1914
he took over the full responsibility when his father died in 1933. After his death
Enfield was bought by investors E & H P Smith who sold Enfield for £82,500 to
Norton Villiers in 1967. While Norton Villiers acquired 33 per cent of Enfield India
the assets of Enfield's diesel engine division and pedal cycle and spares divisions
were not picked up.
Royal Enfield produced bicycles at its Redditch factory until it closed in early 1967.
The company's last new bicycle was the 'Revelation' small wheeler, released in
1965. Production of motorcycles ceased in 1970 and the original Redditch,
Worcestershire-based company was dissolved in 1971.
Enfield of India continued producing the 'Bullet', and began branding its
motorcycles 'Royal Enfield' in 1999. A lawsuit over the use of 'Royal', brought by
trademark owner David Holder, was judged in favour of Enfield of India, who now
produce motorcycles under the Royal Enfield name.
Products
1907 Enfield 15
A light car was introduced in 1903 powered by either a French Ader V-twin or De
Dion single cylinder engine. In 1906 car production was transferred to a new
company, the Enfield Autocar Co Ltd with premises in Hunt End, Redditch. The
independent company only lasted until 1908 when it was purchased by Alldays &
Onions.
In 1907, Enfield merged with the Alldays & Onions Pneumatic Engineering Co. of
Birmingham, and began manufacturing the Enfield-Allday automobile.
By 1910, Royal Enfield was using 344 cc Swiss Motosacoche V-Twin engines, or
largedisplacement JAP and Vickers-Wolseley engines.
1913 Enfield 425cc
In 1912, the Royal Enfield Model 180 sidecar combination was introduced with a
770 cc V-twin JAP engine which was raced successfully in the Isle of Man TT and
at Brooklands.
RE GT with flyscreen
RE Turbo Twin
The Avon 'Speed flow' full sports fairing was available as an extra in
complementary factory colours of red and white.
Other variants were the Olympic and 250 Super 5, notable for use of leading-link
front suspension (all the other 250 road models had conventional telescopic forks)
and the 250 'Turbo Twin', fitted with the Villiers 247 cc twin cylinder two-stroke
engine.
The Royal Enfield GP production-volume racer was first raced in the Manx Grand
Prix in September, 1964. Developed in conjunction with Royal Enfield Racing
Manager Geoff Duke the first public appearance was at Earls Court Show in
November, 1964. Using a duplex-tube frame, leading link forks and one-piece tank
and seat unit, the 250cc two stroke single engine was similar to other small capacity
race machines offered from rivals Greeves, Cotton, DMW and particularly Villiers,
which provided the engines for these marques and many other manufacturers and
bike-builders including the 'Star maker' competition engine used for the Scorpion
racer and Sprite scrambler.
Enfield Indians
From 1955 to 1959, Royal Enfields were painted red, and marketed in the USA as
Indian Motorcycles by the Blockhouse Corporation, who had control of the Indian
Sales Corporation (and therefore Indian Motorcycles) and had stopped
manufacturing all American Indians in the Springfield factory in 1953. But
Americans were not impressed by the badge engineering and the marketing
agreement ended in 1960, and from 1961, Royal Enfields were available in the US
under their own name. The largest Enfield 'Indian' was a 700-cc twin named the
Chief, like its American predecessors.
Enfield India (since 1949)
History
The Indian government looked for a suitable motorcycle for its police and army, for
patrolling the country's border. The Royal Enfield Bullet was chosen as the most
suitable bike for the job. The Indian government ordered 800 350 cc model Bullets.
In 1955, the Redditch company partnered with Madras Motors in India to form
'Enfield India' to assemble, under licence, the 350 cc Royal Enfield Bullet
motorcycle in Madras (now called Chennai). The tooling was sold to Enfield India
so that they could manufacture components. By 1962, all components were made
in India. The Indian Enfield uses the 1960 engine (with metric bearing sizes), Royal
Enfield still makes an essentially similar bike in the 350 cc and 500 cc models,
along with several different models for different market segments.
Royal Enfield was a brand of the Enfield Cycle Company, a British manufacturing
firm. It started in India for the Indian Army 350 cc bikes were imported in kits from
the UK and assembled in Chennai. After a few years, the company started
producing the 500 cc Bullet.
In 1990, Royal Enfield collaborated with the Eicher Group, an automotive company
in India, and merged with it in 1994. Apart from bikes, Eicher Group is involved in
the production and sales of tractors, commercial vehicles, and automotive gears.
Although Royal Enfield experienced difficulties in the 1990s, and ceased
motorcycle production at their Jaipur factory in 2002, by 2013 the company opened
a new primary factory in the Chennai suburb of Bragada on the strength of
increased demand for its motorcycles. The original factory at Trottier became
secondary, and continues to produce engines and some motorcycle models. In
2014 Royal Enfield appointed Pierre Terblanche as the head of new product design.
In January 2015, the company announced the appointment of Redate ‘Rudy’ Singh
as President of Royal Enfield. Singh was previously a Vice President of Unilever in
Singapore. Royal Enfield announced its first takeover of another company in May,
2015 with the purchase of a UK motorcycle design and manufacturing firm, Harris
Performance Products, that had previously developed the chassis of the Royal
Enfield Continental GT Cafe Racer.
Royal Enfield currently sells motorcycles in more than 50 countries. Royal Enfield
surpassed Harley-Davidson in global sales in 2015, and received an
acknowledgment from US President Barack Obama as the guest of honour at the
2015 Delhi Republic Day parade. "I saw the Republic Day daredevils on Royal
Enfield motorcycles," Obama said, adding that "the secret service doesn't let me
ride motorcycles, especially not on my head." He again acknowledged the Border
Security Force riders later in the day, saying "I would, by the way, not drive a
motorcycle after watching those incredible acrobats."
In August 2015, Royal Enfield Motors announced it is establishing its North
American headquarters and a dealership in Milwaukee, Wisconsin, with the
intention to offer three bikes, the Bullet 500, Classic 500 and Continental GT 535
Cafe Racer as they feel this engine size represents an underserved market. The
dealership will be Royal Enfield's first company-owned store in the U.S., according
to Rod Copes, president of Royal Enfield North America. The company wants to
establish about 100 dealerships in American cities starting with Milwaukee.
"I live here, so I am biased. But in my mind, Milwaukee is kind of the centre of
motorcycling in the United States," said Copes, a former Harley-Davidson
executive. "We view this as kind of our first flagship dealership," he added.
Later in August 2015, parent-business Eicher announced its entry in Indonesia as
a part of its global strategy in the mid-sized (250-750 cc) motorcycle segment,
initially starting retail operations from a dealership in Jakarta. From April to
September, 2015, Royal Enfield's domestic sales were 50% higher than the
previous year, despite a declining motorcycle market in India.
In 2017, Royal Enfield added new variants of the Classic 350 and 500 motorcycles.
While the Royal Enfield Classic 350 gets Gun Grey as a new colour option, the
Classic 500 will now come in Stealth Black colour. Royal Enfield has unveiled the
650 cc twin-cylinder engine at the Technology Centre in Leicestershire, England,
on November 2017. This will power the next generation of Royal Enfield
motorcycles. Royal Enfield is going to showcase this at the EICMA (Milan
Motorcycle Show), starting from November 7 in
Italy.
Royal Enfield Plants
Royal Enfield has one manufacturing and assembly facility in Chennai, Tamil Nadu.
This manufacturing plant has been functional since 1955 and still produces the
Royal Enfield
Bullet 350cc and 500 cc models.
List of models produced at the plant:
Thunderbird 500
Thunderbird 300
Classic Desert Storm
Classic Battle Green
Classic Chrome
Classic 500
Classic 350
Bullet 500
Bullet 350
Bullet Electra
Bullet Machismo
Continental GT
The official body type of the motorcycle will be known after the test mules are
spotted in the wild. Till then, we can expect it to be a power cruiser. Harley
Davidson, the most potential rival to the emerging Royal Enfield has a different way
of thinking about their growth.
"We don't compete head to head with Royal Enfield and we don't think we see
(smaller displacement bikes) as something we want to get into. The fact that lots
of Royal Enfield customers aspire to come to leisure motorcycling at some time
and hopefully Harley-Davidson is the first brand that they can think of," Marc
McAllister, managing director of Harley-Davidson Asia-Pacific, said in a recent
interview to ET.
Royal Enfield will cater the needs of the European amateur riders and expected
power for the bike is expected to stay below 48 PS, providing a powerful ride under
the A2 license category.
Marketing Strategy of Royal Enfield:
Marketing Mix of Royal Enfield analyses the brand/company which covers 4Ps
(Product, Price, Place, Promotion) and explains the Royal Enfield marketing
strategy. The article elaborates the pricing, advertising & distribution strategies
used by the company.
Product:
Royal Enfield is one the leading global motorcycle brands based out of India. Royal
Enfield which started making bikes for Indian army has a concentrated product
portfolio in its marketing mix and manufactured motorbikes are: Café Racer
(Continental GT), Cruiser (Royal Enfield Thunderbird 500, Thunderbird 350), Retro
Street (Classic Squadron Blue, Classic Desert Storm, Classic Battle Green, Classic
Chrome, Classic 500, Classic 350), Standard street (Royal Enfield Bullet 500,
Bullet 50, Bullet ES), Himalayan. Royal Enfield products are also known for their
versatility according to consumers demand like adjusting the gears from ideal to
left. This helps them in attracting new customers. They also utilize the strength of
engine as their own strength to retain current customers. As the products are not
only driven by innovations but more with an understanding of users, market and
competitors so now Royal Enfield is even changing from a manufacturing approach
to become more consumer oriented. Royal Enfield likes to make changes,
implement new things in bikes without taking their initial identity.
Price:
Royal Enfield comes up with a bike which is more demanded by the younger
generations. So Royal Enfield focused on the bike explorers and moderately aged
youths who love to catch up with the new hard style bikes and focuses more on
quality then the price. So, with this Royal Enfield follows a premium pricing strategy
in its marketing mix by delivering its customers a high-quality product which are
worth the value. With the goal as less of more Royal Enfield manufacturers a
smaller number of models but each one of them is of high quality which helps them
in offering a capable and stylish product under its brand to their users who whole
heartedly accept the product regardless of premium price. After the GST prices
Royal Enfield has adopted a different strategy by further diminishing the prices of
its least popular bikes.
Place:
Promotion:
Royal Enfield has always focused on a holistic and complete marketing approach.
To increase the volume of bikes sold, Royal Enfield has decided to focuses more
on the consumers need rather than engineering. They launch what consumer
wanted so as to increase the visibility of their products to a larger audience. Seeing
that their prime consumers are middle aged man who are more inclined to the
digital technology so Royal Enfield focuses more on digital marketing i.e. by
launching various online campaigns on different social media sites like Facebook,
twitter, Instagram etc. It also participates in various shows or deal with various TV
series in order to increase visibility of products.
Royal Enfield’s promotions are also seen by traditional way that is through TV,
newspaper, magazines, flyers, boards etc. Hence, this concludes the Royal Enfield
marketing mix
.
About Royal Enfield:
Royal Enfield is an Indian motorcycle company which has created a huge impact
in the automobile industry. Royal Enfield has been able to create an image in the
market such that by its name only every consumer creates an image of a
luxurious, strong motorcycle. Royal Enfield have been manufacturing the classic
automobiles like Bullet, Electra, and Thunderbird series from 1909. Royal Enfield
is also distinctive in its logo with a cannon and a tagline of “Made like a gun”. This
logo shows the heritage of the Enfield Company. Vehicles manufactured under
Royal Enfield are prevalent for tough looks, incomparable dependability and
enormous power.
"I would have to attribute the fact that there was so little damage to, well first Divine
intervention, but then to that little thing that looks like a bar end weight on the right
handle bar (shown). What it really is is a neat helmet lock. The thing is, it rotates
very freely. It served as a little caster wheel and kept the bar from digging in..."
"The scrape marks on the brake lever line up perfectly with those on the headlight.
If one places a flat piece of cardboard along those ground down flats to represent
the road surface it becomes apparent that the bike at some point was in a near
vertical upside down position."
Case Study:
In the year 1893, Enfield Manufacturing Company Ltd (Enfield Manufacturing) was
setup in England to manufacture bicycles. The company manufactured its products
under the Royal Enfield brand. Not content with limiting its product line to bicycles,
Enfield Manufacturing soon decided to focus on building other types of vehicles. In
the year 1899, it started manufacturing a quadricycle called the Royal Enfield
Quadricycle. The Royal Enfield Quadricycle was powered by a rear-mounted
engine. Despite being an innovative concept at that time, the Quadricycle had
limited market potential. In the year 1901, Enfield Manufacturing launched its first
motorcycle. This was fitted with a 239 cc engine.
ROYAL ENFIELD INDIA
As part of its global expansion strategy, Enfield started selling its motorcycles in
the Indian market in the year 1949. In 1955, the Indian government placed an order
for eight hundred 350 cc Royal Enfield motorcycles for use by its police and armed
forces. The Royal Enfield motorcycles were considered an ideal choice for the
Indian army for patrolling the country’s border...
A CULT BRAND IN TROUBLE
Despite operating in a niche segment, Royal Enfield remained one of the most
admired two wheeler brands in India. The bikes were preferred by both motorcycle
enthusiasts and customers in the rural areas...
REVIVING THE BRAND
Immediately after taking over as CEO, Siddhartha analyzed the strengths and
weaknesses of Royal Enfield to come up with a strategy to put the brand on its path
to revival. He came to the conclusion that the sales of Royal Enfield motorcycles
needed to be improved quickly to save the brand....
FOCUS ON OTHER BRAND ELEMENTS
With the quality issues addressed, the management focused on improving the
customers’ experience of buying and owning the brand. To improve the sales
experience, Royal Enfield improved the look of the dealer outlets...
AIMING HIGHER GROWTH
Even though the prices of Royal Enfield were higher than that of the low powered
Japanese motorcycle brands sold in India, they were cheaper than the major global
brands. And in order to keep the motorcycles affordable in the price conscious
Indian market, the company did not revise its prices even after the prospects of the
brand started to improve...
LOOKING AHEAD
The strong pricing power of the Royal Enfield brand and the improved operating
margins rapidly increased the valuation of the company. By the year 2015, Eicher
Motors had become one of the most expensive automobile stocks in India...