Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Day (November 2015)
14 slides from Eicher Motors's investor day presentation, Nov 30, 2015
Slide 1: International Growth
International Growth Rod Copes Investor Day, 30th November 2015
Slide 2: Overview
Overview • Why change international approach? • Opportunity • Overview of North America region • Plans for North America
Slide 3: Opportunity – International Markets
Opportunity – International Markets The Oddity of the Motorcycle Industry Globally… is an opportunity Most Industries Developing Motorcycles > 750cc Markets Industry Premium 250-750cc Mid <250cc Segment CAGR: -5% Period: 2011-14 Mass Commuter Motorcycles Motorcycle Industry Leisure Motorcycles Premi
Slide 4: Change from Opportunistic to Strategic Global Growth
Change from Opportunistic to Strategic Global Growth GLOBAL GROWTH Opportunistic Strategic Poor Independent Distributors Upgrade Distributors Reactive Proactive Few resources for Int’l Dedicated Int’l resources No focus Focus on key markets Minimal Investment Optimal Investment in key markets
Slide 5: Motorcycle Markets
Motorcycle Markets (RIDE) j E MORE Brand Penetration Task | Frequency of Use Task North America e Australia Motorcycle Users Low < =50(%) High >70(%) Involved Leisure Riding Culture
Slide 6: Mature/Developed Motorcycle Markets = Growth Opportunity for Royal Enfield
Mature/Developed Motorcycle Markets • Primarily recreation motorcycle markets • Lower volume, but higher price and profit • Influence rest of world • Relatively small middle-weight segment • Large millennial population interested in motorcycling • Motorcycle brands offer “lifestyle” not just motorcy
Slide 7: Build Aspiration in key cities, countries will follow
Build Aspiration in key cities, countries will follow London 1 & 2 Paris Madrid Dubai Bangkok Medellin Bogota Calli Barranquilla Jakarta Exclusive Stores- 2015, early 2016
Slide 8: North America Region Opportunity
North America Region Opportunity • Highest revenue/value of motorcycles sold annually – Over $8 billion (USD) • Dominated by Harley-Davidson with new competition gaining rapidly • Demographic shift in USA (Millennials) • Distributors have limited resources and capabilities • Opportunity for Royal En
Slide 9: Why Royal Enfield?
Why Royal Enfield? • Motorcycles in North America have gotten – – Large – Complex – Expensive • Millennial generation in North America – Moving to urban centers – Want 2-way interaction with brands – Interested in motorcycling – Avoid popular brands like Harley-Davidson – Enjoy Retro, modern classic
Slide 10: North America Region Plan: Take control of region from Independent Distributors
North America Region Plan Take control of region from Independent Distributors – Establish wholly-owned market company – Implement key team aligned with growth strategy – Develop systems & processes – Adapt Marketing/Communications with appropriate tone – Create benefits & profit for “best” dealers
Slide 11: North America Region Plan: Build Brand Awareness
North America Region Plan Build Brand Awareness – Retail/dealer network – Events – grassroots activation – Demo Rides at dealers and events – Influencers – Social Media – dedicated effort and content creation – PR – proactive and creative – Digitally led advertising & marketing – Mobile interactivit
Slide 12: North America Retail Distribution Plan
North America Retail Distribution Plan * *MBO – Multi Brand Outlet
Slide 13: North America Region Plan: Establish Retail Distribution
North America Region Plan Establish Retail Distribution – Focus on excellent customer experience – Speed to market – Brand-building and awareness – national/regional in scope – Sales volume – Profit for dealer and Royal Enfield – Geographically expansive and multi-layered – Utilize the Smart Phone a
Slide 14: Thank You
Thank You