Royal Enfield: Revival of a Cult Brand



Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The case is about the revival of the iconic Royal Enfield motorcycle brand. Since the brand was introduced in the Indian market during the mid-nineteenth century, it was highly preferred by rural customers and the government departments like the police and the armed forces. During the late nineties, sales of the brand declined due to a number of factors like poor quality, lack of a proper sales and service network, and weakening of the brand image.
The company’s top management decided to sell or close its two wheeler segment as it was becoming a drag on the company's performance. However, Siddhartha Lal (Siddhartha), a young member of the Lal family which controlled the Eicher Group, opined that the fortunes of the brand could be reversed. The company’s board agreed to the proposal of Siddhartha and made him the CEO of the two wheeler segment.

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Siddhartha took a number of initiatives to revive the fortunes of the brand. A new light weight engine made of Aluminum was developed to replace the Royal Enfield motorcycles' old cast iron engines. New engines had higher fuel efficiency and longer life than the older engines. Royal Enfield took the help of an Austrian design firm called AVL to design the new engines. Changes were also made to make the motorcycles look contemporary. In order to improve the quality of motorcycles, the management made the quality standards for its component suppliers stringent. A new cruiser model called Thunderbird was introduced in the year 2002 to attract new younger customers. Enhanced quality and new models improved the sales by the year 2005. Within a short period of initiating quality enhancement measures, the warranty claims went down.

Issues

The case is structured to achieve the following teaching objectives:

  • To understand the importance of product quality in the success of a brand
  • Analyse the strategies followed by the management of Royal Enfield to revive the fortunes of the brand
  • To understand the role of different marketing mix elements in building brand equity
  • Appreciate the importance of creating better brand experiences to connect with customers
  • To understand the threats faced by a business due to the entry of new players into the market
  • Suggest the future strategies that should be followed by the management of Royal Enfield.
Contents
INTRODUCTION
BACKGROUND
ROYAL ENFIELD
ROYAL ENFIELD INDIA
A CULT BRAND IN TROUBLE
REVIVING THE BRAND
FOCUS ON OTHER BRAND ELEMENTS
AIMING HIGHER GROWTH
LOOKING AHEAD
EXHIBITS

Keywords

Two wheelers, Motorcycles, Eicher Motors, Royal Enfield, Thunderbird, Siddhartha Lal, Royal Enfield Concept Stores, Leave Home, Trip, Brand Elements, Product Quality, Cast Iron Engine, Riding Events, Royal Enfield Himalayan Odyssey, Continental GT

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