Double or Quit

IIPM enters into media education

Experts believe that the firmly entrenched popularity of cruisers in targeted developed markets have contributed to Enfield’s success overseas, but volume play on the home turf may require some mass marketing measures from the niche bike maker. Not that the core team at Royal Enfield have been twiddling their thumbs. They are already expanding their target segment from the present 25+ age group to bring more of youngistan into their brand franchise. Analysts say that Bullet’s club activities, which will give the youth a sense of belonging, are set to play a significant role in expanding the Enfield brand promise for India’s youthful demographic. Proactive marketers at Enfield have already started capitalising on this asset. Their latest activities like ‘Log Out’ (focused on corporate sales) and ‘Keep Riding’ (wherein Bullet riders go on a small tour together) are specifically designed to bring a new set of young consumers under the Royal Enfield umbrella. So is there a plan to launch a two-wheeler version of Maruti’s Raid-de-Himalaya?

“Not really. Our intention is to promote Enfield riders riding together, rather than competing with each other,” clarifies Chavan.

Apart from expanding its consumer base, Enfield also has a portfolio line up to achieve the proposed doubling of its sales turnover. The company that has recently rolled out its Classic 350 and Classic 500 models (with single spring-saddle seats and vintage body coloured bumpers), will soon be launching its new and much-awaited Machismo in the Indian market. With its latest UCE technology (introduced in the Classic range), Enfield has narrowed the space for its critics to crib about Bullet’s engine issues. The new technology offers a host of advantages to the consumer namely, engine oil change after 6,000 kms instead of the earlier 3,000 kms; little or no engine adjustments, et al – changes introduced to make more heads turn in Bullet’s direction. “The company will also be launching concept models and variants at the Auto Expo next year which will make consumers more familiar about benefits of UCE technology,” avers Ravichandran.

Despite these subtle overtures to woo new target segments, Enfield is careful about not over stepping the mark in any way that could hurt its intrinsic brand association with cruise biking. Little surprise that they are sticking with their traditional media plan and continue to opt for their regular niche marketing channels. “We have no plans to turn our products into mass appealing ones. Enfield will continue marketing activities via niche media channels only,” explains Ravichandran, emphasising the company’s need to not upset the brand’s apple cart anytime soon.

Our Take: Royal Enfield’s efforts to net in India’s youngistan franchise via its clubs may fetch long-term returns. Their short term plan of netting 60,000 unit sales in 2010 are also well in sight. But, with every bike maker in India hungering to expand their target segment, doubling Bullet sales by 2013, without any major tweaking of marketing strategies, may not be the best bet for this niche player.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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