Royal Enfield Case Study – The History and the Revival of Classic Brand

“Royal Enfield”, The company that was about to go bankrupt in 1994 is now India’s greatest profitable vehicle company. Did you expect a 26-year-old youngster to lead the drowning firm to this point? Someone among us will be unable to recall the name Royal Enfield.

Royal Enfield, Royal Enfield case study, History of Royal Enfield

The interesting thing is that Royal Enfield has rarely aired television commercials. But why is it that everyone knows about the Royal Enfield and that it is every biker’s ambition to own one? Few people are aware that Royal Enfield’s parent firm, Eicher Motors, has provided investors 40% of profits on the stock market for the past five years. When 26-year-old Siddharth Lal acquired the company in the year 2000, it was only 6 months away from bankruptcy. What did they accomplish to make Royal Enfield the market leader it is today?

History of Royal Enfield

Many people believe that Royal Enfield is an Indian brand, but this is not the truth. The Royal Enfield motorcycle firm is based in the United Kingdom. This story begins in the year 1891. In England, Albert Eddie and Robert Smith co-founded a needle manufacturing enterprise. Eddie Manufacturing is the company’s name. After some time, this company receives an order from the Royal Arms manufacturing to manufacture bicycles. When the cycles are finished, they are given the appellation Royal Enfield.

Royal Enfield, Royal Enfield case study, History of Royal Enfield
Post world War II 350cc Bullet Prototype

In 1901, Royal Enfield produced their first motorcycle, which was so robust that it was employed by the army throughout World War I. Finally, in 1932, Royal Enfield introduced the Bullet. The bikes sold quite well, but as soon as the war ended, demand for their bikes began to decline. Finally, in 1949, when there were no other options, K.R.Sundaram of Madras Motors decided to buy this company. Vikram Lal, the CEO of Eicher Motors, buys the company back after many years. However, this decision turns to be the most disastrous of Vikram Lal’s life.

Because Royal Enfield was losing money at the time, and the company’s situation had deteriorated to the point where no one was willing to buy it. Six years after purchasing the company, the board of directors decides it is time to part ways with Royal Enfield. Everything was about to come to an end when Vikram Lal’s son Siddharth Lal asked for a chance.

Nobody could have predicted that the organization that was set to go bankrupt in six months would end up becoming the most dominant in the mid-range market category, but everything was about to change from this point on. What business tactic did Siddhartha Lal implement to rescue the floundering company and make it into a multi-bagger stock, one would wonder?

The Revival of the Royal Enfield

Siddhartha “Started To live the Consumer’s Way” as soon as he took over management of the business. In other words, he begin approaching products from the perspective of a customer rather than a CEO. He began using the Enfield for mountain hikes and soon found many problems. the flaws that the business has not yet paid much attention to. He discovered what all issues bikers have as a result of the right-side gear shift once he started riding the Bullet.

In addition to this, a rider’s leg could also be broken at that time due to the kick start and the number of bosses who supported it. Additionally, when he used to ride his bike, people would simply inquire as to whether he was a visitor. Upon seeing everything, he discovered two serious issues with Royal Enfield.

Everyone in the company has previously believed that Enfield’s bike is too pricey for individuals to purchase. However, this was not the case; many refrained from purchasing Royal Enfields because to their expensive maintenance costs. And there was just one cause, which was poor workmanship. The bike engine would occasionally leak, and the bike’s pipes would occasionally leak, causing the maintenance requirements to skyrocket to the point that no one would buy it. Upon seeing, he made adjustments to his invention, including technical changes such as the side of the gear shift and a re-engineered kick start.

Established the market’s go-to appearance, and the second thing Siddharth recognised transformed the game entirely. BEHAVIORAL DESIGN was the topic. Take your time to understand this. When we complete any task in life, the action we take is a result of our psychological design. For example, if you want to take a taxi there, you will first take out your phone.

And then will hail a taxi from Uber or Ola. But did you ever thought about why you picked up the phone in the first place? This is referred to as Psychosocial Model. You picked up your phone since a firm like Ola & Uber provided its services and so modified your psychosocial design. That you should never book a cab by heading to the taxi stand. Likewise, Siddharth observes that individuals have preconceived notions about Royal Enfield. And with that, Royal Enfield is a famous tourist bike that cannot be used on a daily basis.

And for this reason, Royal Enfield motorcycles were not selling, but how was this issue resolved by Siddharth? And how did he build Royal Enfield into such a well-known brand that everyone recognizes it today without using advertising? Thus, the answer is concealed in this single line. The fear of losing one’s self-esteem is the most prevalent fear that people experience.

Adopting the Change to be the Cult Classic

Emotions are always sold for a higher price than goods. Understanding that Royal Enfield is not a bike but an emotion is crucial for all of us. By what means did Royal Enfield arouse the feeling? As a result, Siddharth Lal initially appointed himself the Royal Enfield brand ambassador. and spread the phrase ‘BE THE CHANGE’ everywhere. People thought of Royal Enfield as a heavy-duty bike because the majority of the army utilised them. However, when Royal Enfield’s message that you can make a difference reached individuals, they began to connect with their own sense of worth.

The idea that the people running Royal Enfield are not like other people gradually began to take root in people’s minds. Enfield also planned numerous daring excursions to promote this concept in the market. Additionally, mountain rides were sponsored, and organisations like Rider Mania were formed in areas like Goa. These factors have helped Royal Enfield develop a devoted following. Due to all of this, the Royal Enfield established a community, and those who are a part of it view it as a source of pride.

And even those who do not own an Enfield have heard that it is a proud symbol. Though you won’t see someone driving two Pulsars together, bullet drivers instinctively feel bonded. The community of Enfield is very strong since it is a source of pride, which is why. Even though the company could have produced 6000 bikes, it only sold 2000. The current waiting time to purchase a bike from that company is two to four months.

The majority of companies that sell the product are aware that they will not use it themselves. Because of this, those people do not even know when their business closed. This is because it’s crucial that you have faith in the product before you sell it. And only after using a product personally can you truly trust in it. Siddharth Lal first used Enfield for this reason, and after doing so, he discovered a number of its shortcomings. He would not have been able to improve Enfield as a brand or product if he had not used Enfield at all.

Siddharth Lal’s vision and its branding strategy to understand consumers and focusing on your manufacturing has really made the Royal Enfield the top most profitable automobile company in India.

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