In the past few years, the demand for Royal Enfield bikes has outstripped supply and led to long waiting periods. What are the key factors behind this mismatch?
The 6-8 months waiting period is not the intention of the company. Our production has grown by over 50%, but the healthy demand has created a waiting period. Our growth is majorly because of the synergy created between customer requirements from a leisure motorcycling brand and our initiatives on promoting the riding culture; making our brand accessible to customers through expansion of reliable sales and service facilities, launching products in line with customer aspirations and mainly being in constant touch with customers.
Besides, the leisure motorcycling culture is on the uptrend in India. People who have been used to the office, home, mall & pub routine are discovering a whole new way to unwind and explore our highways. The unmatched riding pleasure offered by Royal Enfield bikes makes us the natural choice for youngsters and more mature bikers alike.
With this recent spurt in mind, what is your projection with respect to market share growth in the coming years?
We are currently focusing more on improving our production capability and hence rationalising the waiting period for our models. We expect to move to a production of 1.5 lakh units by 2013 with the new plant getting operational by Q1, 2013.
You are also focussing a lot on the youth of India with your promotional campaigns. Can it be said that the Indian youth is your new target segment?
Royal Enfield has a focus on all segments of customers – the passionate youth, the urban aspirational rider, the born again biker and everyone in between. The fact that the oldest motorcycle brand is able to attract a question such as this one is testimony to the ageless nature of this brand.
How significant have your campaigns like ‘Leave Home’, ‘Tour to Bhutan’ and ‘The Himalayan Odyssey’ been when it comes to improving brand recall and brand preference?
Our positioning as a rider’s brand has always been at the core of our strategies. The trip campaign brought out the unique bonding between a rider and his ride. Every enthusiast could identify himself with this campaign. Our marquee rides and several hundred other rides, where our dealers and team take part with customers as a part of the “Keep Riding” campaign, have all bolstered our positioning and kept us close to our customers. Apart from these campaigns, a key lesson that we all are clear about is that our customers own this brand. Be it products, campaigns, rides or any new initiative for that matter; our proximity to customers creates clear directions for our progress. This proximity has ensured that our products and campaigns appeal to the aspirations of our customers.
