ANALYSIS OF CLOSE COMPETITORSROYAL ENFIELD

GROUP NO.6

AISHVI BHUSAR

PUSHKARAJ TAMBAT

SHRAVAN SAOJI

VIVEK KAUSHIK

About the company…

Royal Enfield is an Indian motorcycle manufacturing company with factories in Chennai, India. Originally a British motorcycle company, Royal Enfield and indigenous Madras Motors, it is now a subsidiary of Eicher Motors Limited, an Indian automaker. The company makes the Royal Enfield Bullet, and other single-cylinder motorcycles. Established in 1893, Royal Enfield is among the oldest motorcycle companies.

ROYAL ENFIELD : SWOT ANALYSIS

Strength Size and scale of parent company Effective Advertising Capability High emphasis on R and D Established brand name in the cruiser market Established market distribution channel Exports motorcycles to 31 countries like the USA, Japan, UAE,

Korea, Bahrain, UK, France, Germany, Argentina and many other countries

ROYAL ENFIELD: SWOT ANALYSISWeakness

Weight of the motor cycle can be an issue for few customers. Mileage of high cc bikes is an issue

Competitor Analysis

Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.

The main competitors to Royal Enfield in India are Bajaj, KTM & Harley Davidson India.

BAJAJ

Bajaj has been among the oldest two-wheeler manufacturers in the country. The Chakan based two-wheeler manufacturer was hugely popular for its Chetak range of scooters.

 Bajaj has resurrected the Avenger cruiser brand with the launch of the new Avenger Street. This new iteration is being offered in two variants – 220 Street and 150 Street. The Avenger 220 Street gets an all-black treatment with rubber bellows on the front suspension forks to complete the full black look of the motorcycle. The Avenger Street is built around the same tubular double cradle frame as the old model Priced at Rs.84,000 (ex- showroom), the new Avenger 220 Street is now on sale alongside the 150 Street and 220 Cruise versions.

BAJAJ : SWOT ANALYSIS

Strengths Excellent brand presence and marketing in India Extensive research and development focus and highly

experienced player in the motorcycle segment Widespread distribution network across India Wide product range in terms of price, quality and categories Featured in the Forbes Global brands list

BAJAJ : SWOT ANALYSIS

Weakness

Not a global brand despite high volume production Lack of performance bikes like major international brands and

sports bikes & cruisers

KTM

KTM-Sportmotorcycle AG is an Austrian motorcycle manufacturer owned by CROSS Industries AG and Bajaj Auto Limited. KTM was formed in 1981 but traces its foundation as early as in 1934.

In 1992 the company was spun off from its parent company KTM when it ran into financial troubles. KTM was split into four companies, all of which shared the same "KTM" branding, and in present have many more subsidiaries with the same branding.

KTM : SWOT ANALYSISStrength

KTM Duke 125 is a complete package in terms of style and fuel economy

Has a Strong distribution and service channel with its 1,100 service centre and 600 dealers all across India

Experienced management having years of experience in bike launch

 Increase in purchasing power of youth and young professional 125 cc bike market showing a consistent growth as compared to

other segment bikes in India

KTM : SWOT ANALYSIS

Weakness Price tag is $ 2,100 and many heavy cc bikes are available in that

price Increase in fuel price which restrict middle income group from

buying modern bikes. Highly competitive market   New modern design bike may not appeal to Indian consumer,

irrespective of high sales at Global platform.   Pilot launch of KTM Duke 125 cc under Bajaj brand, it may tamper

Bajaj image if the product does not meets consumer expectation.

HARLEY DAVIDSON INDIA

Harley-Davidson India is a wholly owned subsidiary of Harley-Davidson, based in Gurgaon, Haryana, India.[3] Harley-Davidson India commenced operations in August 2009 and appointed its first dealership in July 2010.

The company has 15 dealership facilities across India: New Delhi, Gurgaon, Chandigarh, Mumbai, Hyderabad, Bangalore, Chennai, Kochi, Kolkata, Ahmedabad, Indore, Pune, Goa and Jaipur

HARLEY DAVIDSON INDIA: SWOT ANALYSISStrength

Cult Brand: Harley Davidson has transformed itself as a cult brand & positioned itself in niche segment of High CC cruiser bikes.

HOG Rallies: Harley has its characteristic rallies of “Harley Owners Group” or HOGS on a continuous basis which involves Harley owners from different parts of the country to interact & experience a different lifestyle.

High Customer Pull: Its distinguished promotional strategies & branding has helped Harley in creating a strong customer thereby having a high TOMA score. (Top of the mind awareness score)

Due to a rich heritage and financial stability parent company is on the growing path.

HARLEY DAVIDSON INDIA: SWOT ANALYSISWeakness

Outside U.S Harley Davidson has a manufacturing unit only in India & one assembling plant in Brazil which makes price to the exported countries a bit higher. Also they are dependent on these 3 facilities to fulfill the global demand.

Over-dependence on the U.S market: More than 65% of the revenue is coming from the U.S market. The U.S market has its own limitation in terms of growth. So it’s became more risky for Harley to generate majority of its revenue from U.S.

Expensive in terms of maintenance and affordability.

Summary…There are many bikes that could easily challenge RE provided they were manufacturing those bikes in India. And with time as they also grow their service network. A Harley 500m if kept under 350000 would be a good example.

So will be an Avenger with KTM’s 375 cc engine and the plethora of high tech engineering as a bonus.

Now if such a bike (Avenger 400) was to be sold at about Rs. 200,000 with ABS, Slipper clutch, better lights and less vibration, it could beat a Classic bullet hands down.

It is true that the round headlight and tank design on the bullet is extremely beautiful and the handle bar on these look awesome.But there is a limit to using beauty as a function.

It will also be needed to be seen if RE will upgrade with tubeless tyres and ABS (since it will be mandatory by April 2017) and also shed some weight. After all people do get aftermarket alloy wheels on Bullets.

The biggest advantage bullet has, apart from its beautiful classic evergreen mouthwatering looks, is that it is made locally with locally made and sourced parts.

It also has a huge network of trained mechanics spread about the length and breath of the country.

But bikes with new tech do not require frequent visits to road side mechanics.

As roads improve and more people buy bikes as a hobby rather than need, better quality bikes will be appreciated.