Royal Enfield: Revival of a Cult Brand



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INTRODUCTION

For the year 2014, Royal Enfield, the motorcycle division of the India-based automobile manufacturer Eicher Motors, recorded sales of 302,592 units. The sales for the year were higher than even the worldwide sales of Harley Davidson for the first time in the brand’s history. The spectacular figures were the result of the turnaround strategy implemented by the company’s management after its sales hit a low of 2,000 units per month in the year 2000.
During the early 2000s, Royal Enfield was suffering from a number of problems like poor quality of its products, outdated design, change in tastes and preferences of customers, and the entry of Japanese two wheeler manufacturers in Indian market. Despite having a cult following among its fans, many prospective customers saw Royal Enfield Brand as a relic of the past.

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In order to turn around the fortunes of Royal Enfield, the management began taking a number of marketing initiatives in the early 2000s. Despite facing strong opposition from the brand’s fans, a number of design changes were made to the vehicles. A new lightweight aluminum engine was developed to replace the old cast iron one. Further changes like using a single platform for all its vehicles and the introduction of new models like the Royal Enfield Thunderbird saved costs and boosted sales. In order to enhance brand experience for its customers, Royal Enfield improved the quality of its dealer outlets and started company owned flagship outlets called ‘Royal Enfield Concept Stores’....

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