GITAM School of Business

GITAM (Deemed to be University), Visakhapatnam

MBA (A) 2020-22

Marketing Management

An Analysis On Brand
Repositioning Strategies Of
Royal Enfield.
as a part of the fulfilment of the Course

MKTG6001 – Marketing Management

II Semester,2023.

Submitted by Submitted to
Team:
Jyothsna Rath(VP22MGMT0100016) Dr. Smitha Viswanathan Girija
Gare Dineshwar(VP22MGMT0100022) Professor Of Marketing,
Karthik Reddy Bora(VP22MGMT0100061) Gitam School Of Business.
Kanchumurthy Pujith(VP22MGMT0100062)
Tangudu Pruthvi Raju(VP22MGMT0100064)
Rachana Patnaik(VP22MGMT0100139)

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 Table of Contents

Particulars Page Number

Chapter-I – Abstract 03

Chapter-II – Introduction 04

Chapter-III – Literature Review 11

Chapter-IV – Research Methodology 14

Chapter-V – Findings and Conclusion 17

References 19

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CHAPTER I -ABSTRACT

This research focuses on the brand repositioning strategy of Royal Enfield, a well-known
motorcycle manufacturer. The purpose of this research is to identify the factors that
influenced Royal Enfield's decision to reposition its brand, as well as to assess the
effectiveness of the repositioning strategy. The study was carried out through secondary
research, which included an examination of the literature on brand repositioning as well as
case studies from Royal Enfield. The findings show that factors such as changing consumer
preferences, increased competition, and the need for brand differentiation influenced Royal
Enfield's decision to reposition its brand. The "Ride Pure" campaign, which aimed to position
Royal Enfield as a brand for the pure motorcycling experience, was central to the
repositioning strategy. The campaign, which was carried out through various marketing
initiatives, emphasised the brand's heritage, authenticity, and distinctiveness. The
repositioning strategy's effectiveness is measured by the brand's financial performance,
market share, and consumer perception. According to the study, the repositioning strategy
was effective in improving the brand's financial performance and increasing its market share.
Furthermore, the campaign was able to establish a strong emotional connection with
consumers, boosting the brand's reputation and loyalty.

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CHAPTER II- INTRODUCTION

ROYAL ENFIELD:

Royal Enfield is an Indian multinational motorcycle manufacturing company headquartered

in Chennai, Tamil Nadu, India.The Royal Enfield brand, including its original English
heritage is the oldest global motorcycle brand and continues production even now. The
company operates manufacturing plants in Chennai in India.

Royal Enfield was originally founded as the Enfield cycle company in 1893. The company
was named after the Royal Enfield factory in Redditch, Worcestershire, which had previously
been known as the Enfield manufacturing company. The first Royal Enfield motorcycle was
built in 1901 and the company has been in continuous production since then. In 1914, the
company has supplied motor cycles to the British army during World War I. In 1932, Royal
Enfield emerged with Alldays and onions Pneumatic Engineering co. History of Royal
Enfield of Birmingham.

In 1994, the rights to the Royal Enfield is bought by Eicher Motors, an Indian company . The
company has been manufacturing Royal Enfield motorcycles in India since then. Royal
Enfield is the world‘s most globally active Indian manufacturer as well as the only one active
in both North America and Europe. In India, Sales grew 364.509% while in Latin America
the increase is 69.0%, keeping Brazil 27%, Argentina 22% and Mexico 20%. In 1952 motors
receives an order from the Indian Army to manufacture 800 350 mL bullets. In total a total of
163 bullets were built by the end of that year. Initially, the product was only produced in the
United Kingdom from 1970 but has been produced in Chennai, India since 1956. According
to the company‘s annual report. It now has a second factory in Chennai and plans to build
third in the future. Royal Enfield bullet 350 cc are powered by a 346 mL air cooled engine
that produces power. Royal Enfield like many other early motorcycle manufacturers was
founded on bicycles, but it also supplied firearms parts to the British government‘s royal
small arms factory.

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Flooding produced by the heaviest rainfall in Chennai cause Royal Enfield to cut production
by 4000 motorcycles in November 2015. It shut down of the plants on first December as
well as the company offices in Chennai. Production resumed at 50% capacity on 7th
December and operations at the plant are back to normal. On 14 December in 2015, Royal
Enfield announced its first takeover of another company- Harris performance products, that
has previously developed the chassis of the Royal Enfield Continental GT. Later in August
2015, parent business Eicher announced its entry in Indonesia, as a part of its global strategy
in mid-sized motorcycle segment. In September 2015, Royal Enfield domestic sales were
50% higher than the previous year despite a declining motorcycle market in India.

THE MARKETING MIX:

Royal Enfield Marketing Mix examines its 4Ps (Product, Price, Place, and Promotion) and
explains the Royal Enfield marketing strategy. Several marketing techniques, such as
product/service innovation, marketing investment, customer experience, and so on, have
aided the brand's growth. Royal Enfield is transitioning from a production to a consumer-
oriented approach because the goods are motivated not only by innovations but also by a
deep understanding of users. Royal Enfield enjoys modifying its motorcycles to keep up with
current trends and to add new features without losing their original identity.

1.Royal Enfield Product Mix

Royal Enfield is associated with the manufacturing and marketing of motorcycles as an auto
mobile company. It began life as a manufacturer of motorcycles for the Indian Army.
Among its other products are lawnmowers, stationary engines, bicycles, and firearms.
Some of its well-known models are as follows:

Bullet Electra 5S, Bullet 350, Bullet Machismo 500, Bullet Street
Retro Street: Classic 500, Battle Green, Chrome, Squadron Blue, Classic 350, Desert Storm C
ruiser: Thunderbird 500, Thunderbird 300 Café Racer: Continental GT

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2. Royal Enfield Price Mix

Royal Enfield is well-known for its visually appealing and one-of-a-kind creations. It is one
of the most trusted and highly recommended brands in the field of two-wheelers because it is
one of the oldest. It is a luxury item that has become a status symbol in the economy. Royal
Enfield has targeted middle-aged groups as well as commercials such as the army and travel
agencies because they believe in quality overpricing at all times. For its high-quality
products, it has instituted a premium pricing policy. The company provides a powerful and
modified product without departing from the basic structure that upholds the brand's legacy.
As a result, despite the high price, its target customers do not hesitate to make a purchase.

3.Royal Enfield Place Mix

Royal Enfield is an Indian motorcycle manufacturer headquartered in Chennai, Tamil Nadu.
It has established a presence in over fifty countries, including Spain, Switzerland, Singapore, 
the Netherlands, Russia, Malaysia, Korea, Canada, Brazil, France, Germany, Italy, the United 
Kingdom, Japan, Argentina, Australia, and the United States.
In the beginning, the company imported 350cc motorcycle kits from the United Kingdom and 
assembled them in its Chennai plant.
By 2013, a new manufacturing plant in Oragadam, Chennai, had been built, and the factory in 
Tiruvottiyur had become a secondary production unit, continuing to produce a variety of mod
els and engines.In the year 2015, the company established a dealership and its North
American division headquarters in Milwaukee, Wisconsin. It began retail operations in
Indonesia in August of 2015. Royal Enfield has a robust distribution network comprised of a
wide range of dealers and stockists, allowing it to easily reach consumer markets. In India, it
has 394 dealership stores in every state and three union territories.

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4.Royal enfield Promotion Mix

Royal Enfield is the first two-wheeler manufacturer to receive a WVTA certificate for
meeting European Community rules and criteria. It has devised numerous promotional
strategies in order to successfully sell its products in the consumer market. With the
assistance of electronic and print media, the company has launched innovative advertising
campaigns. Its commercials can be seen on television, in magazines, newspapers, and on
billboards. Royal Enfield has also kept up with social networking sites by launching brand
awareness campaigns on sites such as Facebook, Twitter, Instagram, and YouTube. It also
promotes its brand by participating in several television shows, and it builds goodwill by
serving society in a variety of ways. It debuted its custom bikes at the Wheels and Waves
custom bike show in Biarritz, France. In recognition of its achievements, Royal Enfield has
received a number of honours and awards. It won the Business Standard Best Company of the
Year 2015 award and was even praised by former President Barack Obama as one of the best
bikes he had ever seen.

SWOT ANALYSIS:

SWOT analysis is a strategy for identifying and assessing internal and external strengths and
weaknesses, as well as opportunities and threats, that affect current and future operations and
aid in the development of strategic goals.

1. Strengths 

 Royal Enfield has built a strong brand identity and customer trust in the market.
 One of the primary reasons for Royal Enfield's renowned brand identity is its high
quality standards.
 Royal Enfield has an in-house R&D centre that is in charge of expanding the
company's product portfolio while also ensuring consumer trust.
Royal Enfield's global sales have increased by more than 50% in the last five years.
Royal Enfield motorcycles are sold in over 30 countries worldwide, and the company

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 has invested heavily in expanding manufacturing facilities in the United Kingdom in
response to increased demand.
 The Effective Advertising Capability of Royal Enfield.

2. Weaknesses

 The weight of the motorcycle may be an issue for some customers.

 High-cc motorcycle mileage is an issue.

3. Opportunities

 Two-wheelers are one of the fastest-growing industries.

 Bicycle export is restricted, implying that there are untapped international markets.

4. Threats

 Royal Enfield competes with several other motorcycle manufacturers around the
world in the cruiser segment. It also competes with high-utility bikes on the market.
 As a result of increased competition, market share is decreasing.
 Because Royal Enfield motorcycles have low mileage, an increase in fuel prices will h
ave an effect on sales.
 Better public transport will have an impact on Royal Enfield.

OBJECTIVES OF THE STUDY:

The objectives of this study are as follows:

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  To review existing literature on brand repositioning strategies and identify key themes
and trends.
 To analyze secondary data sources related to Royal Enfield's brand repositioning
efforts and extract relevant insights.
 To identify the factors that led to Royal Enfield's decision to reposition its brand and
the effectiveness of the repositioning strategy.
 To provide recommendations for potential areas for further research on the topic of
brand repositioning.

LIMITATIONS OF THE STUDY:

 Data source availability and dependability: The study will rely on secondary data
sources such as industry reports, company documents, and academic literature, which
may not always be available or reliable.

 Because of differences in market conditions and consumer preferences, the study's

findings may not be applicable to other brands or industries.
 The study may be constrained by the amount of time available for data collection and
analysis, which may affect the thoroughness of the results.
 The study may be influenced by the researcher's biases and subjectivity in data source
selection.The study relies solely on secondary data, which may not provide an accurat
e picture of Royal Enfield's brand repositioning strategies.
 Changes in the motorcycle industry, economic conditions, or consumer behaviour
outside the scope of the research may impact the study.

IMPORTANCE OF THE STUDY

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 Insights for motorcycle industry managers and marketers: The study will provide valu
ableinsights for motorcycle industry managers and marketers on how to successfully r
eposition brands in response to changing market conditions and consumer preferences
.
 Academic contribution: The research will add to the body of knowledge about brand

 repositioning strategies and their effectiveness in the context of Royal Enfield.
 Business performance: The study can assist Royal Enfield in improving its business 
performance by identifying effective brand repositioning strategies and providing a 
better understanding of consumer  behavior and market trends.
 By effectively differentiating its brand from competitors, the study can assist Royal
Enfield in gaining a competitive advantage in the motorcycle industry.
 The study may spark new ideas and innovations in brand repositioning strategies that
can be applied to other industries and markets

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CHAPTER III-REVIEW OF LITERATURE:

BRAND POSITIONING:

Brand positioning refers to the way in which a company positions its brand in the minds of
consumers relative to its competitors. It involves identifying a unique selling proposition
(USP) that differentiates the brand from others in the market and then developing marketing
strategies that communicate this USP to the target audience. Effective brand positioning helps
a brand stand out from the competition and creates a clear and distinct image in the minds of
consumers.

BRAND REPOSITIONING:

Brand repositioning is the process of changing the way in which a brand is perceived by
consumers in the marketplace. Brand repositioning can be a risky and challenging process, as
it involves altering consumers' perceptions of the brand and potentially losing some of the
brand's existing customer base. However, if done successfully, brand repositioning can help a
brand appeal to new target markets, revitalize its image, and stay competitive in a rapidly
evolving marketplace.

TYPES OF POSITIONING STRATEGIES

There are four types of positioning strategies

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Image positioning

Tangible positioning

Intangible positioning

Product positioning

Tangible positioning

This type of positioning focuses on the physical attributes of the product or service, such as
quality, durability, design, features, and price. Brands use tangible positioning to differentiate
their products from competitors based on their functional benefits and value. For example,
Royal Enfield's tangible positioning strategy is based on the unique design and features of
their bikes, such as the classic retro look, ruggedness, and superior performance.

Intangible positioning

This type of positioning focuses on the non-physical aspects of the product or service, such as
the brand image, reputation, customer service, and emotional appeal. Brands use intangible
positioning to create an emotional connection with their target consumers and establish a
strong brand identity. For example, Royal Enfield's intangible positioning strategy is based on
the brand's heritage, legacy, and cultural significance, which appeals to riders who value
authenticity and tradition.

Image positioning

This type of positioning focuses on the perception of the brand in the minds of the target
consumers, such as the brand personality, values, beliefs, and associations. Brands use image
positioning to create a unique and desirable brand identity that differentiates them from
competitors and resonates with their target audience. For example, Royal Enfield's image

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positioning strategy is based on creating a lifestyle brand that represents a sense of adventure,
freedom, and individuality, which appeals to younger, urban riders who seek a unique identity
and self-expression.

Product positioning

It is the process of creating a distinct identity and image for a product in the minds of the
target consumers. It involves identifying the unique features, benefits, and value of the
product and communicating them effectively to the target audience. Product positioning is a
critical aspect of marketing strategy as it helps a brand differentiate its products from
competitors and create a desirable image in the minds of the consumers. The goal of product
positioning is to create a strong and compelling value proposition that resonates with the
target audience and motivates them to choose the product over other alternatives. Effective
product positioning requires a deep understanding of the target consumers, their needs,
preferences, and buying behavior, as well as the competitive landscape and market trends.
Brands use various tools and techniques such as market research, consumer insights, brand
messaging, advertising, and packaging to create a strong product positioning that aligns with
their overall brand strategy and business goals.

REASONS FOR BRAND REPOSITIONING:

 Changes in the competitive landscape: If a brand's competitors' positioning or market

share have changed, the brand may need to reposition itself to remain competitive.
 Changes in target audience: As consumer preferences and behaviours change, a
brand's positioning may need to be adjusted to better appeal to its target audience.
 Changes in brand image: If a brand's image or reputation has been harmed, it may be
necessary to reposition itself in order to regain consumer trust and loyalty.
 Product offerings changes: If a brand launches new products or services that do not
align with its current positioning, it may need to reposition itself to better align with
the new offerings.

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  New market opportunities: If a brand discovers new market opportunities that
necessitate a different positioning strategy, it may need to reposition itself to capitalise
on these opportunities.

CHAPTER IV-RESEARCH METHODOLOGY

Research design

Research design is a blueprint, a roadmap which drives all the way to perform the research
functions. A research design is designed to get the accurate answers to the research questions.
Research design includes understanding research techniques, planning for the happening of
research, the budget plan, the number of days and the time required to complete the research
process, the type of data which is yet to be collected and the respondent’s availability.
Research design takes inputs from the literature review. The research design adapted in the
study is Descriptive study.

The research design for this study will be a secondary research, focusing on Royal Enfield's
brand repositioning strategies.

Data Collection

The study's data is gathered through secondary research methods such as a thorough review
of relevant literature, newspaper articles available online and company website.

Data Analysis

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The collected data is analysed using content analysis which includes identifying and
categorising key themes and trends associated with Royal Enfield's brand positioning and
repositioning strategies.

The study will ensure ethical considerations by properly citing and acknowledging all sources
of information used. In cases where sensitive information is used, confidentiality and
anonymity will also be maintained.

Content Analysis:

Based on an examination of Royal Enfield's brand positioning and repositioning strategies, th
e company appears to have undergone significant transformation over the years in order to be
tter align with changing market conditions and consumer preferences.Historically, Royal Enfi
eld's brand positioning strategy centred on the company's rich heritage and legacy as a manuf
acturer of classic and vintage motorcycles.This positioning strategy was designed to appeal to 
a specific group of motorcycle enthusiasts who valued tradition and authenticity.However, as 
consumer tastes shifted towards more contemporary and modern designs, Royal Enfield reco
gnised the need to reposition its brand in order to appeal to a wider range of customers.Royal 
Enfield has recently implemented a new brand positioning strategy that emphasises its commi
tment to innovation and product development.The company's product line has grown to inclu
de a broader range of motorcycles with contemporary features and designs, such as adventure 
motorcycles and sport touring bikes.This repositioning strategy has enabled Royal Enfield to 
appeal to a broader range of riders, including younger consumers seeking motorcycles with m
ore modern designs.The importance of effective communication and branding has also been e
mphasised in Royal Enfield's brand repositioning strategies.The company has made significa
nt investments in marketing and advertising to highlight its new positioning and value propos
ition, with campaigns emphasising innovation, quality, and dependability.The company has al
so worked to distinguish itself from competitors by developing unique features and benefits t
hat distinguish its motorcycles in the market.Overall, Royal Enfield's brand positioning and r
epositioning strategies show the value of adapting to changing market conditions and consum
er preferences, as well as the role of effective communication and branding in successful repo
sitioning.Royal Enfield has maintained its relevance and success in the motorcycle market by 

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leveraging its rich heritage and legacy while also embracing innovation and contemporary de
sign.

KEY POINTS FROM CONTENT ANALYSIS

POSITIONING STRATEGY REPOSITIONING STRATEGY

Focus on heritage and legacy as a classic Focus on younger riders with modern
and features,more dynamic and sporty design.
vintage manufacturer.
Limited product line. Expanded product line with new models and
features
Traditional marketing and word of mouth as Digital marketing and social media
promotion techniques. campaigns, Advertisements as promotion
techniques.
Limited presence Present globally now.
Competitive pricing compared to Premium pricing for premium features and
competitors design

The previous strategy focused on classic, retro designs and nostalgia, and it was aimed at
older, nostalgic riders looking for classic bikes. The current strategy, on the other hand, has
diversified to appeal to a wider range of riders, with a particular emphasis on younger, urban
riders looking for lifestyle bikes. Royal Enfield has also increased its marketing and
promotion efforts through digital marketing and social media campaigns, as well as expanded
its product line with new models and features. Furthermore, Royal Enfield has expanded its
international presence and now charges a premium for its premium features and designs

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CHAPTER V-

FINDINGS

Reasons For Repositioning-

 Royal Enfield faced intense competition from both domestic and international players
in the motorcycle market. To remain relevant and stand out in a crowded marketplace,
the company needed to reposition its brand and products.
 Consumers were shifting towards more modern and technologically advanced
motorcycles, and Royal Enfield's traditional and retro-style motorcycles were losing
their appeal. To attract a new generation of riders, the company needed to reposition
its brand and products to better align with the evolving consumer preferences.
 Royal Enfield's expansion into international markets required a more cohesive and
effective brand positioning strategy that could appeal to a wider audience.
 Royal Enfield had traditionally focused on producing classic and retro-style
motorcycles, but the company wanted to expand its product portfolio to include more
modern and versatile motorcycles. This required a repositioning of the brand to reflect
its new product offerings.
 Bikes were too heavy and fuel consumption was high and maintenance was also
being difficult.

Strategies Adopted-

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 The brand started marketing two different segments- India and Bharat.
In the Indian segment it means more modern lightweight and fuel efficient bikes
In the Bharat segment they wanted to retain the legacy and other attributes of typical
old Vehicle.
They have reduced the engine weight by 30% and increased the efficiency by 30%,
making it easy to handle, ultimately increased in mileage.
 They have introduced lighter bikes for women in the US.
 Royal Enfield introduced new models in variants of the motorcycles.
 They have expanded their dealer network within India and internationally to improve
accessibility and availability of their products and they collaborated with various
influences and created a strong online presence through the social media.
 They have repositioned their brand from a niche motorcycle manufacturer to a
lifestyle brand that offers a unique experience to his customers they also focused on
building and emotional connection with their consumers and creating a sense of
community among Royal Enfield riders.

Year Strategies adopted by Royal Enfield in various years

2000 Sales of the bike were down to 2,000 units a month against the plant's
capacity of 6,000
2001 Electra was launched as Indian market only model with 346 cc classic
engine. 4-speed or 5-
speed
gearbox

2002 Ceased motorcycle production at their Jaipur factory

2002 Launched models of Thunderbird 350
2008 Classic models were launched - inspired by J2, a 1950 model Bullet
2011 Fury: A flat-track style version of the 500cc Bullet Electra EFI, sold
exclusively in the UK by importer Watsonian Squire
2013 500 cc variant of the Thunderbird. Fuel injection, digital console, electronic
fuel gauge, projector headlamps and 18-inch wheels. Currently the flagship
model of Royal Enfield India
2014 Continental GT: Cafe Racer styling. Fuel injection, Digital console, electronic
fuel gauge, projector headlamps Twin downtube cradle frame, Paioli, Twin
gas charged shock absorbers with adjustable preload, 80mm travel
2015 Eicher Motors had become one of the most expensive automobile stocks in

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 India
2016 Himalayan: Launched as all terrain, all weather bike promising both
adventure and comfort

CONCLUSION:

 Royal Enfield's sales have increased significantly since the repositioning strategy was
implemented. The company has expanded its market share both in India and
internationally.
 Royal Enfield's brand perception has improved, and the company is now perceived as
a more modern and versatile brand that appeals to a wider range of consumers.
 Royal Enfield has successfully diversified its product portfolio to include more
modern and versatile motorcycles that appeal to a wider audience.

Overall, while there may be some areas for improvement, the repositioning strategy has
helped Royal Enfield stay relevant and competitive in a rapidly evolving market.

REFERENCES

Royal Enfield seeks different positioning in global markets - Times of India (indiatimes.com)

Royal Enfield Renaissance is an old story. Here is what’s driving the brand’s future
(theprint.in)

History & Marketing Strategies of Royal Enfield - Brandyuva.in

Royal Enfield – Motor Hub (royal-enfield.com)

Product Positioning Strategy (chron.com)

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