Sunday, 10 June 2012

Marketing Strategies for Royal Enfield Bikes


Royal Enfield is a brand associated with Power and Royalty. This may be partially attributed to its long association with The Indian Armed Forces, Its history in England and its unique Thump sound which attracts attention. 
To understand how Royal Enfield (RE) manages to keep customers loyal in a country where :
1. petrol prices are very high and the Fuel Average of RE Bikes is lower as compared to competitors,
2. comparatively cheaper and good designer bikes which provide new advanced features are available,
3. other companies heavily advertise their bikes, whereas RE hardly uses advertisements
I decided to go to the Royal Enfield Store in Adyar, Chennai which is one of the few RE company showrooms in Chennai.

Pre-Visit to the Showroom
I searched on the internet and found that there were seven RE showrooms in Chennai. RE also has its manufacturing plant in Chennai. The most famous showroom based on on-line communities was the Adyar RE showroom. Before my visit to the store, I called the owner, Mr D.U. Venkatraman and apprised him of my purpose. He asked me to come on a Sunday morning to the showroom.

Observations during the visit.
On arrival I met Mr. Shubhu who was a salesman on the showroom. He provided me with a few insights on the showroom and the various kinds of customers which come to the showroom. I then made my observations of the showroom and the customer experience.
  1. Shop-floor arrangement : 
    • There were only a few models kept and the rest of the shop-floor was empty giving a lot of movement space to the customers. This was refreshing and gave a sense of freedom and choice.
    • The walls of the showroom were filled with posters of RE Bikes and the Evolution history of the company throughout the ages. This was interesting as it clearly indicated the historical roots and the rich history of the company.
    • The showroom was well lit from both natural and artificial  lights. The temperature was moderated and it felt refreshingly cool inside.
    • The showroom was designed in such a way that people from outside could easily see the customers inside. I believe this adds to the customer experience since it makes customers feel respected by outsiders and boosts their self image.
    • The showroom has displayed the complete range of motorcycles right from the basic 350cc model to the Classic 500 Chrome and Desert Storm and that too in all colours so that customers could zero in on their choice.
  2. Customer Experience



    • There were only 2 salesmen in the showroom who were neatly and smartly dressed in semi-casuals. They were friendly and easy to approach.
    • Ample parking space was available in from of the showroom. A security guard was available to ensure security of customer vehicles.
    • Clean water was available for customers. Also a place to keep helmets and bags was provided.
    • During my visit only three customers came inside the showroom. They were all serious customers and collected information on the cost of the various bikes.
    • All these customers were well aware of the RE Bullet Bikes and were avid travellers. They were helped by the salesmen who explained them in detail the various options available for payment including advantages of direct cash payment or through loan.
    • The customers were also given a free calendar with the showrooms name on it.
    • The salesmen took the telephone numbers of the customers so that they could follow up on closing the deal. 
Overall I observed that from the moment the customer parked his vehicle, entered the showroom and exited, at all the "moment of truths", the showroom was able to provide special treatment for the customer. The customer felt part of a heritage. The shining bikes and the wall posters, the open spaces and the freedom to mount a bike and feel the bike first hand, made an impact on the customer. 

I thanked Mr. Shubhu and left the showroom. I will be visiting again in the coming few weeks.

Prabhjot Singh Lamba
FT 13451

1 comment:

  1. Thank You Probhjot.
    Its takes sharp observation.
    Rather i would like to know more about the subject (Marketing strategy of RE) you used for this article.
    You have raise very nice three points in the starting but I feel the answer is missing here.
    Could you please put some lights on the marketing strategy of RE?

    ReplyDelete