BM Assignment Brand Extensions Royal Enfield SectionC Group15

8/13/2019 BM Assignment Brand Extensions Royal Enfield SectionC Group15

1/12

Brand Management Section A, Group 15

1

Brand Extensions

Brand Royal Enfield

Brand Management

Group Assignment

Course Instructor: Ashish Sadh

Submitted on 4 th August 2013

Brand Equity Measurement Proposal: Salman Khan1. .

Section A Group 15

Nitesh Kumar | Mayank Jain | Yogendra Kumar Meena | Alok Kumar


2/12


2

PART-I

Introduction

To stay ahead of the curve is a highly competitive environment; companies today need to keep tweaking

and adding value to their brand equity to sustain businesses. For this, managers can exploit the already

existing equity of the brand when entering new markets/ product categories. This is done by building up

on brand recognition, goodwill and positive associations that customers make with the brand.

Brand extension is a part of brand management to diversify and leverage the existing brand by entering

into new product category by new product development. Positive images and strengths of existing

brand / parent brand are capitalized upon to bring another success story for new product. Brand

extension is increasingly used by companies as a part of strategy for product developments. It is viewed

as one of means to attain a single integrated brand.

Brand Introduction

Royal Enfield motors, popularly known for making the Bullet, is a brand that is more than 50 years old.

And traditionally, it has always been known for its typical macho image. While several brands in the

Indian two-wheeler market have been battling it with each other on aspects like economy, price,

technology etc, Royal Enfield has made full use of the empty space in the market to position itself as the

Indian Harley Davidson of the biking world. With passionate buyers and a die -hard following among

the younger Indian demographic, the brand today has become a cult brand in a niche market.

In fact, the brand took such an instant liking amongst customers, that they did not even mind the

Bullets right -side gear shift when all other bike manufacturers had moved onto the left. To address this,

the company now has a new model the Thunderbird, to target upgraders from smaller bikes. Evenwith minimal advertising, the presence of this brand in the auto industry is a force to be reckoned with.

Royal Enfield has also realized the value of its own brand, and now utilizes it to charge a slightly higher

premium than competitor bike manufacturers in the same segment, while creating products with a high

value for money.


3/12


3

Brand Personality and Brand Image

Royal Enfield still maintains its very macho image today. With an intimidating size, heavy 180kg bikes (as

compared to 50kg bikes by other manufacturers) and the power and sound that Royal Enfield bikes

produce are clearly characteristics that everyone cov ets. But apart from these, and the cool quotient

that riding a Royal Enfield motorbike adds to your persona, the imagery and promotions that the brand

does these days promotes the very outdoor nature of people Bikers who like going on long road trips,

who are into the more adventurous way of life. We can take a look of an example from the company

website,

Apart from elements that can be picked up from the obvious imagery that Royal Enfield shows, a short

interview was also taken of Royal Enfield owners and Royal Enfield enthusiasts, to see what images

came to their mind when spoken to about the brand.

The following were the output of a Focus Group Discussion and short survey (Annexure 1)

- Royal Enfield is a male-oriented brand- Royal Enfield is owned by people who love driving long distances - Royal Enfield is for the adventurous


4/12


4

- Royal Enfield bikes are for those who love spending time outdoors- Royal Enfield is a very charismatic bike to own- Owning a Royal Enfield gives a sense of pride that no other bike can provide- Royal Enfield bikes are very safe and stable to ride- Owning a Royal Enfield feels like being part of an exclusive Bikers club - Royal Enfield bikes are built to last- Royal Enfield bikes are driven by those who have passion for the road and the brand

These insights have further been used to understand possible brand extensions for Royal Enfield.

In a country like India, with the number of varieties of two-wheelers available, Royal Enfield has still

been running strong with a very limited range of bikes over the years. Apart from the quality of products

that it produces, its long-lasting success in the Indian market can also be attributed to the way it has

kept reshaping its brand personality over the years. Initially, it started as being a bike driven by army

men. This then moved onto becoming the bike of policemen. During the late 80s, the trend of

purchasing Royal Enfield, by biking enthusiasts spurred, though the volumes at that time were very low.

This has today snowballed to sales of nearly 60,000 units a year. The brand today, with its Trip

campaign, aims at those who has the desire to do something different and have a strong passion for

biking.

Proposed Brand Extension

Based on the insights from the interview, the brand perceptions have been scrutinized and we decided

to propose its extension into the small SUV segment in Indian market whose price will range from Rs.5-9

lacs. Royal En fi eld Adventu re SUV


5/12


5

PART II

Executive Summary

The purpose of the Royal Enfield SUV Survey is to better understand which type of mini-SUV should be

launched by Royal Enfield in the Indian market in the price range of Rs. 5-9 lacs. The survey model

consists of five components: socio-economic classification, features to be added, brand perception of

Royal Enfield to tailor our advertising by using competitive benchmarking, consumer preferences when

it comes to engine and fuel options.

Royal Enfield Survey is a baseline survey that is intended to be conducted once to measure consumer

preference trends related to the broad parameters required in customizing SUV according to Indian

customer needs. Specifically, the survey can be used as a data source for measuring different trends that

are coming in the SUV Market like more female buyers in SUV segment. Additionally, findings from the

survey will be used to inform the Royal Enfield about the current socio-economic classification who is

entering this segment, so to help in finalizing the size and seating capacity of the car.

Key decision issue

Should Royal Enfield launch an SUV in the price range of 5-9 lakhs in India?

Marketing research problem

To determine consumer preferences for the features of a SUV in the range of 5-9 lakhs?

To measure the brand effectiveness of the current brands in the market vis--vis Royal Enfield ?

Do customers require Royal Enfield to enter in Mini-SUV Segment?


6/12


6

Research design

The Research design is a Descriptive as well as a Causal type of research design as our focus would be

on understanding the existing value proposition existing in the market and understanding the way

forward for Royal Enfield in enhancing the value proposition via its new offering.

Methodology -- Both quantitative and qualitative research was carried out, demographics and socio-

economical parameters were considered while designing the questionnaire. For the quantitative part

mean, median, Std. deviation and chi-square analysis would be done. It was promoted to probable

customers of SUV via the social medium messages and e-mail announcements and to some IIM Indorestudents through invitation. The survey included five sections: demographics, features, brand

perception, fuel options and pricing options.

Data Type and Source -- Preferred data type is cross sectional, as the collection of information would be

done only once. Primary data source would be collected using a survey to get the current customer

preferences etc. while secondary data would be studied to understand the current context and market

situation.

Scales -- Comparative scales would be used to get the consumer perception about the existing market

conditions, competitor analysis etc. while non-comparative scales would be used to judge customer

preferences about the various features and attributes. Ordinal, Interval, Likert, Nominal scales are used

in different questions to gather consumer insights of the available products as well as SUV as a whole

segment

Target -- The target customer is an affluent middle class looking for a value for money SUV in the 5-8

lakhs category. Our objective remains to analyze the lucrativeness of this target segment.

Setting -- We would be doing a natural sampling as the experiment demands a natural setting for best

results.


7/12


7

Detailed explanation of questionnaire

Demographics

1. Whats your gender?

Male

Female

Scale- Nominal

This is to know the inclination of male/female towards SUV and which attributes dominate the choice of

a vehicle if influencers are male/female. Also it is to know how d technological depth a buyer can go

while purchasing a vehicle if a buyer is a male/female.

2. Are you?

Married

Single

Scale- Nominal

Married/Single has a significant impact on the purchase decisions. We wanted to know the impact of

marital status on the buying of a vehicle in terms of its features, looks and sturdiness.

3. Which age group do you belong?

50

Scale- Interval


8/12


8

It will show the impact of age on the purchasing decision of a SUV. It will also show the brand perception

of various age groups towards Royal Enfield as well as major existing competitors in the market. It will

also give an idea about positioning the brand/product according to the age group.

Socio-Economic

4. Whats the annual income of your household?

Rs 3-5 lakhs

Rs 5-10 lakhs

Rs 10-20 lakhs

> Rs 20 lakhs

Scale- Interval

It clearly shows the impact of household income on the purchase decision. Also it will show the

expectations of each bracket from a SUV, as well as consumer perception of the brand image of Royal

Enfield and competitors brand image.

5. Whats your family type?

Nuclear

Joint

Scale- Nominal

The type of family you have clearly changes your preferences. It becomes more inclusive and prefers

more safety. We wanted to know how people rate these features against sturdiness, looks and vehicle

performance.

6. How many members are there in your family?

2-5


9/12


9

>5

Single

Scale- Interval

As SUVs present in the market have eating capacities ranging from 5 to 8. Hence the family type and

family size has a huge impact on the choice of SUV. It also helps company to design parameters like boot

space and interiors.

7. Do you presently own a car?

Yes

No

Scale- Nominal

Whether you presently own a car or not has a huge impact on your choice, your budget, your

preferences and your perception towards Royal Enfield as well as competitors.

Fuel Preference

8. Whats your preference for an SUV?

Petrol

Diesel

Hybrid

Scale-Nominal

Decision to buy an SUV also depends on type of fuel as fuel prices vary nationwide. Also features like

engine capacity, mileage as well as other interior features also depend on fuel type. Environmental

awareness can also come into picture when the hybrid option is given to the consumers.

Brand Perception


10/12


10

9. Rank the following SUV Brands

1. Mahindra Scorpio

2. Ford Ecosport

3. Force Rio

4. Renault Duster

5. Tata Sumo

6. Chevrolet Tavera

7. Mahindra Bolero

8. Mahindra Quanto

Scale- Ordinal

These are the major brands in SUV segment in India in this 5-9lakh price range. Ranking them accordingto the customer brand perception will help the company to know the major competitors. This will help

Royal Enfield to know the strengths and weaknesses of their major competitors and designing or

positioning aspects.

10. Have you experienced Royal Enfield bike before?

Yes

No

Scale- Nominal

This question will create an additional brand recall in participants mind along with above question.

11. What's your perception about Royal Enfield?

Expensive

Value for money

Quality but premium

Ruggedness

Others


11/12


11

Scale- Nominal

This will give the exact consumer insight about the brand when price and quality are correlated. As our

product lies mostly in middle class segment, this insight can help Royal Enfield to position or reposition

their brand in this category.

Features

12. Rate the following drivers for going for a particular brand? (5 = Best, 1 = Worst)

Brand Status

After sale services

Maintenance cost

Look

Sturdiness

Scale- Ordinal

This ranks how much consumer pursues each of these brand qualities. This, along with question 9 can

tell what comes first when he thinks of the brand he likes most.

13. Rate the following features when thinking of buying an SUV? (5 =Best, 1 = Worst)

Engine Capacity

Mileage

Engine type (Diesel/Petrol)

Seating Capacity

Interiors

Boot Space Alloy Wheels

Safety Feature - ABS/ Air Bags

Steering Mounted Control

Scale- Ordinal


12/12

BM Assignment Brand Extensions Royal Enfield SectionC Group15

Documents

Transcript of BM Assignment Brand Extensions Royal Enfield SectionC Group15