What will be the effect of Bullet 650's pricing strategy on its market positioning?
Motorcycle enthusiasts have been speculating about the pricing of the Royal Enfield Bullet 650. According to reports, it will be a bigger displacement model with more features, so we can expect it to be priced higher than the current Bullet 350. But, how the company will choose to price its product will have important effects on its market position and target audience. Priced too high, and it might lose the same accessibility that made the Bullet brand popular in India. Priced too close to the existing 650 twins, however, it would cannibalize sales from those models. And then there's the question of how it'll be positioned globally, and whether it'll compete with other retro styled middleweights. It will have to price the bike with a heritage appeal, performance capabilities, and a Royal Enfield brand image, but in a competitive market segment that is becoming increasingly crowded.
If they price it too high, they defeat the whole point of the Bullet. It has to be affordable for the average rider.
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