What will the Classic 650's pricing strategy mean for it in terms of success in different markets?
It is always important to price a motorcycle right and the Classic 650 has to be priced correctly in different markets. That is in India where the brand is well placed, Classic is a known name, so the pricing may vary for international markets where Royal Enfield is still building the brand name. How does the pricing debate stack up against the Classic 350 and other 650cc models in RE’s portfolio, and how does it compare to competition from other brands? And then there’s the perceived value question – will buyers feel the Classic 650 represents an upgrade worth its price, given the fact that it could be fighting against established middleweight brands in some markets?
If they price it right, it could be a game changer in India. The Classic look is what people love and if they can do it with a 650 engine for under 10K, it will sell like hotcakes.
They have to be careful internationally. The Classic name doesn't mean as much outside India. To have a chance, they'll have to price it competitively against Japanese and European bikes.
They will use a premium pricing strategy, I believe. Position it as a step above the 350, but cheaper than the competition – Triumph. It's always worked for their other 650s, why change?
If they price it too close to the Interceptor or Continental GT, they could have a problem. It's established those bikes in the market. The Classic 650 must provide clear value proposition in order to justify its existence.
Different pricing strategies should be considered for different markets by RE. If they have to pick one, maybe they just position it as a premium option in India, but go for a more aggressive, value oriented approach in Western markets where they still have to build brand recognition.
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Discussions and Questions What Will The Classic 650S Pricing Strategy Mean For It In Terms Of Success In Different Markets
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