Professional Documents
Culture Documents
ON
“MEASURING CUSTOMER SATISFACTION LEVEL”
AND
“SALES PROMOTION”
IN
YAMAHA
AT
LAKHIMPUR and UNNAO
This is to certify that Mr. Hemrudra Pratap Singh, a student of Post Graduate Degree in
MBA, BBS Institute of Management Studies, Greater Noida has worked in the
MARKETING DEPARTMENT, under the able guidance and supervision of
MR.JANARDAN SAANA, MARKETING MANAGER in INDIA YAMAHA MOTORS Pvt.
Ltd.
The period for which he was on training was for 8 weeks, starting from 10th JUNE to 10th
AUG. This Summer Internship report has the requisite standard for the partial fulfillment
the Post Graduate Degree in Marketing. To the best of our knowledge no part of this
report has been reproduced from any other report and the contents are based on original
research.
DR.BIMAL AGGARWAL
(DIRECTOR)
I would also like to thank the entire team of INDIA YAMAHA MOTORS, for the constant
support and help in the successful completion of my project.
Also, I am thankful to my faculty guide Mr. Bipin Singh of my institute, for his continued
guidance and invaluable encouragement.
3.0 Hypotheses
6.0 Data
Primary Data
Secondary Data
7.0 Findings & Analysis
2. Scooter
3. Mopeds
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
Domestic Market Share 2008 – 09
Commercial Vehicles 3.95%
Total Passenger Vehicles 15.96%
Total Two Wheelers 76.49%
Three Wheelers 3.60%
In the past year the sales of the automobile segment has taken a setback and the two
wheeler segment has not proved to be any exception. The two wheeler segment has
suffered a setback of over 7% during the past fiscal year but there have been signs of
recovery in the current year.
The total sale of two wheelers in India has touched a figure of 7.86 million units by
March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production
during the period reached 8.63 million units.
The production of two wheelers in India is expected to reach a staggering 17.85 million
units by 2011-12, more than double of the current production level.
The two-wheeler production capacity is to reach 22.31 million units in 2011-12 compared
with 10.78 million in 2006-07.
The growth witnessed by the Indian two wheeler industry indicates the growing demand
for low cost personal transportation solutions amongst the 300 million Indian middle
class consumers. Despite this spectacular growth rate, the two wheeler penetration
(number of two wheelers per 1000 inhabitants) in India remains lower than other Asian
countries. This fact provides an opportunity for continued growth in the market. India has
the lowest Penetration of two wheelers as compared to countries like Taiwan, Thailand,
Malaysia, Vietnam, Indonesia and China. In the present scenario, growth in the two
wheelers Industry will be driven by several factors
Post 1991, the Indian two-wheeler industry comprising of motorcycles, scooters and
scooterettes opened up tremendously. The Indian motorcycle industry has expanded at
a 24% CAGR over the last five years, It Captured almost 80% of the market primarily at
the cost of the scooter and Moped segment. The scooter segment though has witnessed
a revival with the launch of scooterettes aimed at young women and adolescents.
The two wheeler market can be segmented into three categories on the basis of price –
Entry segment (<35000), Executive segment (between 35000 and 45000) Deluxe
(between 45000 and 65000) and Premium segment (above 65000).
Motorcycles are now sold as a passion, experience rather than a product. New products
are being introduced at a rapid pace and brands are gaining prominence. Thus there is
an increased focus on the premium segment which has an increased scope for
differentiation.
Purchasing Power is relatively high with buyers becoming more discriminating. Reliability
and economy have become more of a hygiene factor. Buyers now demand two-wheelers
that fit their personality thus increasing the scope for differentiation and branding.
Provision of financing through EMI’s has provided a means to satisfy the need of
possess a convenient and stylish mode of transport in the form of a two wheeler. This
has resulted in higher growth in the 125-150cc segment
With the introduction of Government policies such as reduction in excise duty from 16%
to 12% and allowing for 100% FDI Barriers to entry has reduced. However, the
investment required for setting up large distribution channels and service stations can be
a major entry barrier. Another significant entry barrier is the brand building required.
Thus, initially foreign players set up Joint Ventures with indigenous companies. After
establishing their brand they have launched their own line of products. E.g. Honda with
Hero Group and Yamaha with Escorts.
Threat from Substitutes such as the Tata 1 Lakh car looms large over the two-wheeler
industry. For the first time, a car has been positioned at a price point that fills the vacuum
between a motorcycle and a low-end car such as the Maruti 800. Previously, the price of
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
even a low end car (2.5 – 3 Lakhs) was too high to attract the customers from the entry
and executive two wheeler segment. Since brand loyalty is lower for these segments vis-
à-vis the premium segment, these segments may be threatened by the Tata car. Their
buyers will consider the convenience and status associated with owning a car, which is
reasonably priced and therefore a viable substitute.
Current Competition has intensified thus requiring greater branding and marketing. Also
due to the presence of relatively undifferentiated products, advertising and promotions
have gained importance. The product has moved from a commodity to a branded
product. However, there is still tremendous growth potential especially in the rural
markets due to the under developed road infrastructure for which motorcycles are highly
suitable.
Segment
Three CVs
3.9% 4.03%
W heeler 13.44%
Pas
ve h
`
T he
Others, 5.8%
Yamaha, Honda
3.8% Motors, 8
TVS Motors,
17.7%
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
H
1.1COMPETITORS ANALYSIS
Established in 1945 Bajaj Auto Ltd was incorporated as a trading company. Till 1959,
they imported scooters and three-wheelers from Italy and sold them in India. The
company got a production license in the year 1959 and fastened a technical
collaboration with Italian PIAGGIO in 1960.
Bajaj Auto Ltd. is one among India's top ten companies in terms of market capitalization
and among the top five in terms of annual turnover.
The company started producing scooters in the year 1961 and followed three-wheelers
production in 1962. Its collaboration with Piaggio expired in 1971 and since then, their
scooters and three-wheelers are being sold with the brand name “BAJAJ”.
Maharashtra Scooters Ltd., a Company with 24% equity participation by the Company
and 27% participation from Maharashtra State Government's Western Maharashtra
Development Corp. was formed in the year 1975 under the "Horizontal transfer of
technology" policy.
The first production unit is located at Satara, Maharashtra. The unit continues to collect
scooters from CKDs supplied by the Company. These scooters are marketed through
the Company's distribution network and under the Company's brand name.
In 1984, the second production plant was set up at Aurangabad, Maharashtra. This plant
started scooter production in 1986, three-wheeler production in 1987 and scooterettes
and motorcycle facilities were commissioned in 1990 & 1991 respectively.
Today, the company has become a market leader with annual production in excess of
1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has
TWO WHEELERS
>> MOTORCYCLE
Bajaj Avenger 180 CC
Bajaj CT 100 99.27 CC
Bajaj Discover DTSi 135 CC
Bajaj KB 125 123 CC
Bajaj Platina 99.27 CC
Bajaj Pulsar DTS-Fi 220 CC 220 CC
Bajaj Pulsar DTSi
180 CC
• Pulsar 180 DTS-i UG 150 CC
• Pulsar 150 DTS-i UG 200 CC
• Pulsar 200 Cc 220 CC
AWAITED MODELS
Sonic DTSi Motorcycle
1985 CD-100
1989 SLEEK
1991 CD-100 SS
1994 Splendor
1997 Street
1999 CBZ
2001 PASSION
2002 DAWN, AMBITION
CD-DAWN, SPLENDOR +, PASSION +,
2003
KARIZMA
SUPER-SPLENDOR, CD-DELUX,
2005
GLAMOUR, ACHIEVER
The company is committed to provide the customer with excellence. A rich background
of producing high value products at reasonable prices led the world's largest
manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer.
During 80s, Hero Honda became the first company in India to prove that it was possible
to drive a vehicle without polluting the roads. They company possess three
manufacturing units based at Dharuhera, Gurgaon and Haridwar are capable to produce
4.4 million units per year. They introduced new generation motorcycles that set industry
benchmarks for fuel thrift and low emission.
The unique features like fuel conservation, safety riding courses and mobile workshops
helped the group reach in the interiors of the country. Well-entrenched in the domestic
market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been
steadily on the rise.
Over the years, the Company has received its share of accolades, including the National
Productivity Council's Award (1990-91), and the Economic Times - Harvard Business
School Association of India Award, against 200 contenders. The gross sales of Hero
Honda by March end'2008 was 33, 371, 43 Crores.
TWO WHEELERS
>> MOTORCYCLES
Hero Honda Achiever Hero Honda CD Dawn Hero Honda CD Deluxe
Hero Honda CD 100 Hero Honda CD 100 SS Hero Honda Glamour
Hero Honda Splendor
Hero Honda Glamour
• Splendor +
• Glamour Hero Honda Passion Plus
• Super Splendor
• Glamour - FI
• Splendor NXG
Established in 1999, the Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a wholly
owned subsidiary of Honda Motor Company Ltd., Japan and is located at Manesar,
Haryana. The company's most well known brand is the Honda Activa that revolutionized
the Indian scooterette market in terms of design and features. The company exports
scooters to the European Union.
HONDA MOTORCYCLES
MODEL CAPACITY
Honda Shine 125 CC
Honda Unicorn 149.1 CC
Honda Stunner CBF 125 CC
Honda CBF Stunner FI 124.7 CC
HONDA SCOOTERS
MODEL CAPACITY
Honda Eterno 147.7 CC
HONDA SCOOTERETTES/MOPEDS
4. TVS Motor
TVS Motor is a leading and trusted two wheeler company
began with the vision of TVS Scooty the founder of the
Sundaram Clayton Group, the late T.S. Srinivasan - 'to
design, develop and produce an affordable moped for the
Indian family.' This vision was realized in 1980 when TVS
50, India's first two-seater moped rolled out of the factory
at Hosur in Tamil Nadu, Southern India.
The company has been known for its ruggedness and reliability. TVS 50 was successful
and it has smoothened the way for many successes for TVS Suzuki even before its
launch in the market. The TVS 50 XL is especially designed for individuals who want
economy fused with sporty looks. Recently new XL Super with a 70 cc high-tech Power
Pack is all set to redefine the category of mopeds in the country. The Suzuki Samurai
was launched for the time conscious urban commuter. The Max 100 R was engineered
for those who demanded strength and ruggedness. Along with them all, Suzuki Shogun
was for those who wanted raw power.
TVS Motor has continually worked on innovation of the motorcycle segment along with
two wheeler range. The Suzuki Shaolin, developed by TVS Suzuki is India's first 5-
speed, 140 cc motorcycle. Another example of the company success is TVS Scooty, a
60 cc Scooterette which keep one step ahead of its time in India.
TVS Motor has been coveted 2 IT awards, one of them is bagging the SAP ACE 2008
award for Customer Excellence and the other one is 2008 Symantec South Asia
Visionary Award. Along with this, it is the first company in the world to be honored with
The company is the third largest two-wheeler manufacturer in India and ranks among the
top ten globally. The company was the first in India to launch 2-seater 50cc moped and
100cc Indo-Japanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty,
TVS Centra and TVS Fiero are the popular bikes in Indian market.
In all, team TVS has triumphed each and every race and rally in the country from the
road to racetrack, with each of the TVS bikes being a winner. And each time the 'Team
TVS' has won on the track or off it; our customers have secured a better product for their
personal transportation.
TWO WHEELERS
>> MOTORCYCLES
Suzuki Hayabusa 1300 Suzuki Intruder M1800R Suzuki GS 150R
TVS Apache RTR FI TVS Centra TVS Fiero
• TVS Fiero F2
• TVS Fiero FX
Suzuki Max 100 Suzuki Max 100R Suzuki Samurai
Suzuki Shogun Suzuki Shaolin TVS Flame
TVS Victor TVS Star
AWAITED MODEL
TVS Taurus Fiero F3
In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, and later
merged with it in 1994. The annual turnover of the company is Rs.10 billion. The Eicher
Group has a range of interests in the automotive industry, including small trucks,
tractors, exports, automotive gears, management consultancy and cartography.
The corporate philosophy of Royal Enfield Motors Ltd. is built around quality and
unflinching loyalty to the customer, a few reasons why the legendary Bullet is not just a
bike but a motorcycling icon. The ruggedness and reliability of the bike is endorsed by
the army, the police, the paramilitary forces and over 500 institutions which form part of
the die-hard customer base of the Bullet, dubbed the "Rajagadi", or royal vehicle.
Royal Enfield Motors Ltd. operates out of 12 area offices, 16 depots, over 250 dealers
and 150 authorized service centers in India. The company also exports its products to
over 20 countries including Canada, France, Japan, USA, Germany and UK.
TWO WHEELERS
>> MOTORCYCLE
Bullet 350 Bullet 500 Enfield Diesel
Bullet Deluxe Bullet Electra Bullet Machismo
• Bullet Electra
• Bullet Electra 5S
Bullet Machismo 500 Bullet Std 12V Lightning 500
Taurus Thunderbird Twin spark
We can classify these competitors into following groups according to their attributes and
their competitive forces.
PROMOTIONAL ACTIVITIES
HIGH LOW
SWOT ANALYSIS
Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50
joint venture with the Escorts Group in 1996. However, in August 2001, Yamaha
acquired its remaining stake as well, bringing the Indian operations under its complete
control as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan.
The company pioneered the volume bike segment with the launch of its 100 cc 2-stroke
motorcycle RX 100. Since then, it has introduced an entire range of 2-stroke and 4-
stroke bikes in India. Presently, its product portfolio includes Crux (100cc), Alba (106cc)
and Gladiator (125cc).
VISION
MISSION
Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of
YAMAHA products, focusing on serving our customer where we can build long term
relationships by raising their lifestyle through performance excellence, proactive design
& innovative technology. Our innovative solutions will always exceed the changing
needs of our customers and provide value added vehicles.
Build the Winning Team with capabilities for success, thriving in a climate for action and
delivering results. Our employees are the most valuable assets and we intend to develop
them to achieve international level of professionalism with progressive career
development. As a good corporate citizen, we will conduct our business ethically and
socially in a responsible manner with concerns for the environment.
Grow through continuously innovating our business processes for creating value and
knowledge across our customers thereby earning the loyalty of our partners & increasing
our stakeholder value.
CORE COMPETENCIES
Customer #1
We put customers first in everything we do. We take decisions keeping the customer in
mind.
Challenging Spirit
Team-work
We work cohesively with our colleagues as a multi-cultural team built on trust, respect,
understanding & mutual co-operation. Everyone's contribution is equally important for
our success.
We are honest, sincere, open minded, fair & transparent in our dealings. We actively
listen to others and participate in healthy & frank discussions to achieve the
organization's goals.
OVERVIEW
SALES: 1,756,707 million yen (from Jan 1, 2007 to Dec 31, 2007)
PARENT: 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007)
SALES PROFILE
Sales (%) by product category (consolidated)
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
Sales (%) by region (consolidated)
CORPORATE PHILOSOPHY
Yamaha Motor is a company that has worked ever since its founding to build products
defined by the concepts of “high-quality and high-performance” and “light weight and
compactness” as we have continued to develop new technologies in the areas of small
engine technology and FRP processing technology as well as control and component
technologies.
It can also be said that our corporate history has taken a path where “people” are the
fundamental element and our product creation and other corporate activities have
What is Kando?
A scan of the internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually can be classified as
strengths (S) or weaknesses (W), and those external to the firm can be classified as
opportunities (O) or threats (T). Such an analysis of the strategic environment is referred
to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection. The following diagram shows how a
SWOT analysis fits into an environmental scan:
Environmental Scan
/ \
Internal Analysis External Analysis
/\ /\
Strengths Weaknesses Opportunities Threats
|
SWOT Matrix
Strength
Threats
Opportunities
Strength
YAMAHA FZ-S
Yamaha FZ-S 150cc, a recently launched bike by the industry giant Yamaha. After the
grand success of FZ-16 Yamaha has finally launched its modified version (FZ-S) in
India. This fabulous bike is equipped with all the necessary features one may think of. It
stands ahead in style and performance not only in its segment but beyond. This bike is
best suited for those who want elegance and power in one. It is designed and
engineered with the capacity for active and aggressive enjoyment of around-town street
riding and styling, bringing a sense of pride for the owner of the bike. It is especially
designed to satiate riders' desire for style and fashion. It is popularly referred as the
“Stylish Macho Street Fighter” (Lord of the Streets).
Bajaj Pulsar DTS-Fi 220cc will be available in all contemporary black themes as well as
can be availed in 4 different colors. The recently launched Bajaj Pulsar DTS Fi-220 cc
reflects a major difference from other Pulsar bikes launched by the automaker. This
change is the downgrading of Pulsar model from Fuel Injection to carburetion.
The all new Bajaj Pulsar DTS-Fi 220cc is loaded with features like engine oil cooler, split
seats, clip-on handle bar, auto choke and fuel & battery charge indicators. This new
version of Pulsar makes the use of temperature based ignition mapping. This kind of
mapping helps to optimize the ignition timing in order to achieve good start ability,
outstanding torque as well as quick warm up.
The different features to look out for in Bajaj Pulsar DTS Fi include rear and front disc
brakes. In fact, this is the first bike in India that comes with both types of brakes. Since
this motorcycle is designed to offer a thrilling riding experience it is also packed with
varied safety features for smooth running. According to the reviews of this advanced
version of Pulsar, this bike in India is sure to give competition to motorcycles of other
brands.
Geared with PGM-FI technology, Honda CBF Stunner FI has made its way in India. The
new version of CBF Stunner sports bike from Honda Motorcycle and scooters
India Pvt. Ltd. (HMSI) was launched and targeted for the youth in the country. This
sports bike from Honda Motorcycle's is priced at around Rs. 66,200 (ex-showroom,
Bangalore) and Rs. 64,630 (ex-showroom, Delhi).
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
An ultimate desire for every youth, Honda CBF Stunner PGM FI comes equipped with
superior technology and stunning performance. Powered with a 4-stroke, air cooled OHC
single cylinder engine, this two wheeler is offered with digital ignition. The new Honda
CBF Stunner FI is believed to develop 11bhp at 8000 rpm and 11 nm torque at 6500
rpm. The motorbike re-defines style with amazing features like a stepped-up seat, half
fairing, front and rear tubeless tires, alloy wheels for a comfortable riding experience.
Honda CBF Stunner PGM FI 125 cc gives a top speed of 65kmph in 5.2 seconds. The
eco- consciousness of the company HMSI, that is the wholly-owned two-wheeler
subsidiary of Japan-based Honda motor Company, is also evident from the PGM-FI
technology used in this sports bike. The PGM-Fi (Programmed Fuel Injection) technology
of the two wheeler would keep emission level as low as 1/10 of BS II Norm.
The all new CBF Stunner PGM-FI has maintenance free battery and viscous air filter that
promises less maintenance. Cumulated with PGM-FI technology, this version of Honda
Stunner is believed to reach out to the youngsters and give them a heart racing
experience.
Key Highlights:-
The Royal Enfield Thunderbird Twinspark is the perfect example of unfolding mix of old
and new. Its 346 cc engine, 4 stroke single cylinder air-cooled engine delivers maximum
power of 19.8 bhp @ 5250 rpm capacity ensuring its smooth performance and constant
vacuum (CV) carburetor assure its simple start. Delighting customers, this bike is
absolute comfort statement for the passenger as well as rider. This bike is like a must-
have for every rider and it is hard to beat in terms of pure riding pleasure and visual
delight.
Special Features:
Incorporated with all latest and advanced features, this bike includes:
• Steering damper
• Engine mode indicator
• Vertically stacked headlight
• LED taillight
• Radial mount TOKICO front brake caliper
Colors:
Some special characteristics of Suzuki Hayabusa 1300 are :
Specifications:
SUZUKI GS 150R
Colors:
Features:
Equipped with certain unique features like :
Specifications:
Aiming to strengthen its presence in the premium segment, country's third largest two-
wheeler maker TVS Motor Company on Monday launched an advanced version of its
bike Apache fitted with fuel injection engine, priced at Rs 64,990.
TVS APACHE RTR FI is the first bike from its stable to feature innovative Fuel Injection
technology. By launching the apache RTR FI TVS will bring the its ultimate racing
experience to the streets. According to TVS, the new apache RTR FI offers instant thrill
and superior performance of a fuel injected 160cc engine. The 160cc FI mill cranks out
15.1bhp at 8500 rpm and 13.1Nm at 6500rpm. The figures are not much different for
carbureted apache RTR. However, the power delivery will be progressive and the
refinement can be felt while driving. TVS claims the top speed of the new apache RTR
Fuel Injection (FI) as 120kmph. Also because of the improved combustion the emissions
will be minimal in the new apache RTR Fuel Injection (FI).Another novel feature in the
new apache RTR Fuel Injection (FI) is the rear disc brake. This new feature will give
better control over this beast.
YAMAHA R125
YAMAHA R6
ENGINE SPECIFICATIONS
Displacement: 599cc
Engine: 4-stroke, 4-cylinder, 16-valves, D0HC
Maximum Power: 127 Bhp @ 14500 rpm
Maximum Torque: 65.8 Nm @ 11000 rpm
Gears: 6 Manual
DIMENSIONS
Length: 2040.00 mm
Width: 705.00 mm
Height: 1100.00 mm
Weight: 185.00 kg
Ground Clearance: 130.00 mm
Fuel Tank: 17.30 ltrs
Wheelbase: 1380.00 mm
Wheel Type: Alloys
ENGINE SPECIFICATIONS
Displacement: 165cc
Engine: Air-cooled, 4-stroke, SOHC, 2-valve
Maximum Power: 15 Bhp (Expected)
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
Maximum Torque: 14 Nm ( Expected)
Gears: 5 Speed
DIMENSIONS
Length: 2065.00 mm
Width: 730.00 mm
Height: 1100.00 mm
Ground Clearance: 155.00 mm
Fuel Tank: 13.00 ltrs
Wheelbase: 1300.00 mm
ENGINE SPECIFICATIONS
Displacement: 180cc
Engine: 4 Stroke, EFi
Maximum Power: 18bhp
Gears: 5 Speed
OTHER SPECIFICATIONS
Top Speed: 135kph
Fuel Consumption (City): 28.00
Fuel Consumption (Highway): 42.00
HONDA INTERCEPTOR
The Honda CBR1000RR Fire blade is a Moto GP race replica with many of its features
taken from Honda's top-end racing bikes. The result is a high-performance track and
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
racing superbike that also makes for a perfect street bike.
1) Exciting new colors: Red/Black, Pearl Orange/Black, Metallic Silver, and Graffiti
2) Exclusive, MotoGP derived Unit Pro-Link Rear Suspension
3) Dual Stage Fuel Injection System (PGM - DSFI) features two injectors per cylinder.
4) MotoGP-derived Honda Electronic Steering Damper (HESD).
5) High-revving engine redlines at 15,000 rpm.
6) MotoGP-style center-up exhaust system.
7) Radial-mount front brake calipers combined with radial actuated master cylinder.
8) 41mm Honda Multi-Action System (HMAS) inverted front fork.
9) Centrally located fuel tank increases mass centralization for a more compact frame
design.
10) Line beam headlights feature three-piece multi-reflector design.
CRITICAL REVIEW OF
LITERATURE
‘Consumer buyer behavior refers to the buying behavior of final consumers – individuals
and households who buy goods and services for personal consumption.’ (Philip Kotler)
‘To understand the buyer, and to create a customer out of him, through this
understanding, is the purpose of buyer behavior.’ (Ramaswamy and Namakumari)
It needs to be specified at the outset that there is no unified, tested and universally
established theory of buyer behavior. What is available today, are certain ideas of buyer
behavior.
1. Problem Recognition
The process of buying normally starts with the recognition of a need by the
consumer. He recognizes a problem and develops a perception of the problem. Then
he seeks information for solving his problem.
2. Awareness
The customer turns to his environment /world of information around him. It makes
him aware of the existence of the product that would solve his problem.
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
3. Comprehension (Evaluation)
Comprehension comes out of his ability to reason with the information.
The awareness and comprehension stages represent the information processing
stage. These two stages constitute the cognitive field of the purchase process.
4. Attitude
It is the sum total of the individual’s faith and feelings towards a product. As a result
of his awareness and comprehension, the consumer develops an attitude – favorable
or unfavorable – towards the product. The purchase process will continue only if he
develops a favorable attitude or a liking for the product.
5. Legitimization
The buyer must be convinces that the purchase of the product is he legitimate
course of action. This stage often stands as a barrier between a favorable attitude
towards the product and actual purchase. Only if the buyer is convinced about the
correctness of the purchase decision, will he proceed. At this stage, he may seek
further information regarding the product, or attempt to assess the information
already available.
Attitude and legitimization constitute the attitude field of he purchase process.
6. Trial
Conviction leads the consumer to try the product on a small scale ; he may buy a
sample. He tries to evaluate the product from his own experience.
7. Adoption
A successful trial leads him to buy/adopt the product.
Trial and Adoption constitute the behavioral field in the buying process.
8. Post-Purchase Behavior
The purchase leads to a specific post purchase behavior. Usually, it creates some
restless ness in the mind of the individual. He is not sure about the product. He may
feel that ‘the other brand’ would have been better. He may even feel that the
salesman has taken him for a ride. As this dissonance is uncomfortable, the
individual, by himself will seek all means to recover his conviction and poise. He well
seed reassuring advertisements of the products or he may deliberately avoid positive
stories about the competing brand.
Yamaha has shifted its focus from the lower end segments to the premium segment of
bikes. It aims to provide its customers the full range of its engineering marvels that make
Yamaha the company that it is. Yamaha has a very strong focus on the technical
department, the result of which can be seen with Yamaha comfortably leading the
constructor’s championship in the Superbikes racing with Valentino Rossi and Colin
Edwards as their riders.
Yamaha has aimed to become the No.1 in customer satisfaction and is looking forward
to providing the customer with an ‘experience’ with its products.
The target market of India Yamaha Motors is the young and enthusiastic 18-25 yr. olds
who are willing to try taking the not so much treaded path of buying the ‘sports bike’
rather than a ‘utility two wheeler’. These young guns are very conscious of the style
quotient and look forward to their ride being a personality statement.
With the increasing dispensable income in India and growing middle and upper middle
class segment Yamaha is sure to find many prospective customers. With news of India
becoming the breeding ground for millionaires Yamaha has certainly identified an
opportunity and has grabbed it hands down.
Product: India Yamaha Motors has recently launched its sports bike R15 and FZS in the
150cc. The bikes in the premium segment include MT01 and YZF R1. Yamaha is
bringing its latest technologies to India and aims to come up with a new product for the
Indian market every quarter.
The reliability and riding quality of a Yamaha have already been established through its
earlier products.
Price: The Yamaha range of products has been very competitively priced and the prices
of its premium segment bikes MT01 and YZF R1 are priced much below any present or
prospective competitor in the segment at Rs.10.5 lacs.
HYPOTHESES
H0 = Yamaha’s new launch of FZ & FZS has changed customers perception regarding
choice of bikes.
H1 = Yamaha new launch of FZ & FZS has not changed customers perception regarding
choice of bikes.
H0 = Yamaha has regained its image in India after the launch of FZ & FZS.
H1 = Yamaha has not regained its image in India after the launch of FZ & FZS.
H0 = There is a significant relationship between income group and the choice of features
they value most in a two wheeler.
H1= There is no significant relationship between income group and the choice of features
they value most in a two wheeler.
H0 = There is a significant relationship between income group and the 1st information
source for the people.
H1= There is no significant relationship between income group and the 1st information
source for the people.
H0 = There is a significant relationship between age group and the choice of features
they value most in a two wheeler.
H1= There is no significant relationship between age group and the choice of features
they value most in a two wheeler.
H0 = There is a significant relationship between age group and the 1st information source
for the people.
H1= There is no significant relationship between age group and the 1st information source
for the people.
EXECUTIVE SUMMARY
This research is a hypothesized study which was conducted to measure the Customer
Satisfaction Level from the Yamaha’s new products such as YAMAHA FZ & YAMAHA
FZS; this research was conducted in the East UP region. This research was done during
the months of June and July2009.Hence the data displayed has been collected during
the before mentioned period.
3. Survey has been carried away by telephone, one-on-one interviews; The Survey
included both quantitative, forced-choice or close ended questions and qualitative,
open-ended questions.
During this research it was found that Yamaha’s new launched bikes(FZ & FZS) has
increased its market share by attracting new customers and helped to retain its old
customers which they have lost in she past after the ban of RX100 in India. FZ & FZS
are awarded as a BIKE OF THE YEAR. India Yamaha Motors, a company that is known
for combining technology, quality and performance in their bikes, had taken an initiative
to introduce some of their performance driven bikes in India last year and are now
reporting an impressive growth of 48% in sales during April 2009 having sold 15120
units as compared to 10199 units in April last year. With their product line-up being the
FZ-16, FZ-S and the R15, India Yamaha Motors is also providing their customers with
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
Different experiences with their various programs such as allowing the customers to
drive their bikes on a race track.
It is also seen that Yamaha is focusing on the Premium segment of bikes which is slated
to welcome new players. Yamaha would have to constantly innovate and come up with
new products to maintain its dominance in the segment.
PRIMARY DATA - Primary Data was very crucial to collect so as to know various past &
present consumer views about bikes and to calculate the market share of this brand in
regards to other brands. Fresh primary data was collected by taking direct feed back from
customer which involved face to face interview with the customer as well as through
telephonic interview with the customer , all the FZ customer who visited the dealership
showroom for the service of their bikes were questioned in order to find out the customer
satisfaction level.
SECONDARY DATA- are those which has been collected by some one else and which
already have been passed through statistical process. Secondary data has been taken
from internet, newspaper, magazines and companies web sites.
SURVEY METHOD: The research approach used was survey method which is a widely
used method for data collection and best suited for descriptive type of research survey
includes research instrument like questionnaire which can be structured and unstructured.
Target population is well identified and various methods like personal interviews and
telephone interviews are employed.
• To determine the customer’s satisfaction regarding bikes and after sales service.
This study is a mix of explorative and formal methodologies adopting monitoring and
observing to study the dealerships in Lakhimpur and communication to elicit responses
from customers. This is a cross sectional study done during the months of June and
July.
For the customer satisfaction study a questionnaire was formulated containing 17 closed
ended questions which were sent out for response through the internet and mainly
through personal interviews of customers at Yamaha dealerships. This data was later
analyzed using SPSS through performing the cross-tabulations on various involved
variables. Results of this step formed the basis of the recommendations given to the
company.
For the sales promotion study a census methodology was adopted and all the
dealerships and brokers of that region were visited.
For the customer satisfaction study a sample of 100 persons was chosen from the
Yamaha’s dealership in Lakhimpur. The sample was judgmental and methodology was
non probability sampling
This study is aimed at providing India Yamaha Motors with an insight into the success of
FZ & FZS as well as the customer’s response and awareness towards the brand,
products and services of Yamaha.
The data has been analyzed and presented in a simple and precise way on the basis of
which pertinent recommendations have been made to the company to better the
services, policies and strategies of the company in India.
Data
PRIMARY DATA
In order to find out customer satisfaction & Perception regarding newly launched bikes
of Yamaha Primary Data was collected by personally visiting the dealerships and
showrooms. With the help of a questionnaire we took the feedback from the FZS
customers who were coming for the services of their bikes at the dealerships. As well as
we contacted some of the customers through telecalling by taking the data about the
customers from the customer data register of the dealership We interviewed them and
discussed with the showroom staff as well as with the employees at Yamaha which
helped us to prepare our research Report .
SECONDARY DATA
ANALYSIS: 7.1.1: Following points can be referred from the above pie chart
• The above pie chart is showing that the customers of FZS are mainly coming
from the age group of 16-25 that is around 69%, as Yamaha claims that they
generally target their customers who are between the age group of 18 to 25,
because that people of this age group are passionate and are style freaks,
• So we can say that Popularity of Yamaha is available in the age of 26-30 (around
20%) also because of its reputation in the world market.
Analysis: 7.1.2: In this pie chart it is very much clear that 76% of the Yamaha’s
customer is mainly the youth who are single, so Yamaha’s new launch FZS is mostly
being accepted by the singles instead of family oriented people.
Analysis: 7.1.3: Once again we found that Yamaha’s major customers are the students of
colleges and schools which consists 43%, as they want something special, new, stylish,
masculine and attractive and Yamaha is providing that in the form of FZS.
Analysis: 7.1.4: In the income group distribution we can analyze that customers of FZS
are coming from the Middle income group people which is around 73% by including
10001-40000 slab of income group. It shows that Yamaha is placing their products in the
appropriate price range. As the people of this income bracket can easily afford this Bike.
Analysis: 7.1.5: Here again we can prove that the products of Yamaha are in the
acceptable price range, as we can see that purchasing way of the customers are leading in
the CASH sector. Customers are easily affording the price of FZS; they are not feeling
much problem with the amount of FZS.Today’s customers are ready to pay for better
facilities and technology and they feel that FZS deserves that price which YAMAHA is
offering.
Analysis: 7.1.6: In this pie chart a very important thing can be referred that
Indian Youths are not so much independent in the financial matters, still they depends on
the family, as Yamaha claims that they target the people of 18-25 age group, but here we
can say that they should promote such kind of advertisements where the Yamaha
products can link to the family. Ultimately family is paying the amount so Yamaha
should target according to family also, so that the view of the children and family
shouldn’t clash.
Analysis: 7.1.7: Majority of people is not comparing Yamaha FZS to any other
product and the number of such people is around 39%,
But the second view which we have found that FZS is getting a very tough competition
Fr BAJAJ & HERO HONDA. BAJAJ has launched their new edition of Pulsar 220 at a
very low price (around 70000 ex showroom price), which is the reason for the tough
competition giving by BAJAJ. On the other hand HERO HONDA HUNK is also giving
direct fight to the FZS because of its MILEAGE only. There are some more competitors
which are stable at their market share in automobile industry.
Analysis: 7.1.8: If we see the trend of Two wheeler industry we found that earlier people
were looking mainly towards the mileage of the vehicle but now In our research we
collected data and found that now customer’s perception has changed and they are
shifting towards the style, design & riding comfort of the vehicle,
54% customers have purchased FZS because of its Style & Design and only 2% people
are looking for the mileage.
So in a way we can say they Yamaha exactly changed the perception of Indian
customers. They are trying to attract customers with new style, design or look of the bike
and creating passion in the customers for the speed and power.
So through this we have proved our First hypothesis which was regarding the Yamaha’s
new launch of FZ & FZS that has changed the customer’s perception regarding choice of
bikes.
Analysis: 7.1.9: As we can see here the major promotional tool which is
influencing the customers is TVCF which stands for Television Commercial, which is
around 45%, after that the major source of awareness among customers, is
Family/Friends. Magazine and newspaper consists only 9% in our research, but if we
look them at a very good sample size then it is around 2% only.
So here we can say that Yamaha should produce better advertisements like FZS
and they should link their ads with the emotions of the customers so that the brand
recognition by the customers will be for long time. The customers can still recall the
punch lines of Bajaj and Hero Honda such as HAMARA BAJAJ or HERO HONDA
DESH KI DHADKAN. YAMAHA should also use such kind of heart loving lines.
Analysis: 6.1.10: This is a good result for Yamaha that once again they are creating place
in the heart of the customers, after the discontinue of RX100 Yamaha has lost very big
amount of customers in the last 10 years, but after the launching of FZS, Yamaha has
improved their image among the customers.
Our data is showing that 98% people are admitting that Yamaha has improved their
image after the FZS and R15 launch, feedback which we have got from the customers
were like that Yamaha has produced something new this time and very stylish and well
designed product..
With Yamaha's continued thrust on technology, quality and manufacturing excellence
and introduction of Global Yamaha standards in its operations, the customers have
experienced the real Yamaha and have come closer to the brand.
By this we are again proving our second HYPOTHESIS that YAMAHA has regained its
image after the launch of FZ & FZS.
Analysis: 7.1.11: This year Yamaha FZS has got the BIKE OF THE YEAR AWARD
which shows its popularity among the customers. It has fulfilled the desire and demand of
the current customers, there are very few people who still need some improvements in the
FZS but Yamaha is taking care of those customers also. As our data is showing that 78%
people are giving good comments or responses for Yamaha, they are feeling that FZS is
the most stylish and trendy bike in these days, 2% people are feels that spare parts of
Yamaha FZS are very costly and 16% people are complaining for the mileage of the bike,
therefore Yamaha should work on these loopholes of the bike so that they can attract
some more customers.
HYPOTHESIS I
H0 = Yamaha’s new launch of FZ & FZS has changed customers perception regarding
choice of bikes.
H1 = Yamaha new launch of FZ & FZS has not changed customers perception regarding
choice of bikes.
PURCHASING REASONS
Cumulative
Frequency Percent Valid Percent Percent
Valid STYLE/DESIGN 54 54.0 54.0 54.0
CONTOLLABILITY 7 7.0 7.0 61.0
PICK UP 8 8.0 8.0 69.0
REPUTATION OF 6 6.0 6.0 75.0
MAKER
RIDING COMFORT 12 12.0 12.0 87.0
NEW TECHNOLOGY 8 8.0 8.0 95.0
DURABILITY 1 1.0 1.0 96.0
OTHERS 2 2.0 2.0 98.0
MILEAGE 2 2.0 2.0 100.0
Total 100 100.0 100.0
When we analyze the above Bar Diagram we can clearly find out that now a days
customer are not looking for mileage at all, they are going for style and design, so by
conducting this survey we have found that after the launch of Yamaha FZS people are
giving second thought to mileage which was first in the previous days.
So the above chart is ACCEPTING our NULL HYPOTHESIS and REJECTING our
ALTERNATE HYPOTHESIS.
As it is very clear by looking up the BAR DIAGRAM so there is no need for any other
test.
H0 = Yamaha has regained its image in India after the launch of FZ & FZS.
H1 = Yamaha has not regained its image in India after the launch of FZ & FZS.
YAMAHA IMPROVED
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 98 98.0 98.0 98.0
NO 2 2.0 2.0 100.0
Total 100 100.0 100.0
Here again we can see clearly that 98% of total sample size are accepting that YAMAHA
has regained its image after the launch of FZ & FZS .There are only 2% people who are
still feeling that YAMAHA is not up to the mark. so this observation is also proving true to
our NULL HYPOTHESIS and REJECTING the ALTERNATE HYPOTHESIS.
HYPOTHESIS III
H0 = There is a significant relationship between income group and the choice of features
they value most in a two wheeler.
H1= There is no significant relationship between income group and the choice of features
they value most in a two wheeler.
OF REPUTATION
PICK UP
NEW TECHNOLOGY
MILEAGE
RIDING COMFORT
DESIGNSTYLE/
CONTROLLABILITY
DURABILITY
OTHERS
TOTAL
MAKER
MONTHLY HOUSEHOLD INCOME
UPTO 10000
Count 8 1 2 2 4 0 0 0 0 17
% within 47.1% 5.9% 11.8 11.8% 23.5 .0% .0% .0% .0% 100.
MONTHLY % % 0%
HOUSEH
OLD
INCOME
% within 14.8% 14.3 25.0 33.3% 33.3 .0% .0% .0% .0% 17.0
PURCHAS % % % %
ING
REASONS
% of Total 8.0% 1.0% 2.0% 2.0% 4.0% .0% .0% .0% .0% 17.0
%
1000 Count 18 2 3 0 2 4 1 1 2 33
1- % within 54.5% 6.1% 9.1% .0% 6.1% 12.1 3.0% 3.0% 6.1% 100.
2000 MONTHLY % 0%
0 HOUSEH
OLD
INCOME
% within 33.3% 28.6 37.5 .0% 16.7 50.0 100. 50.0 100.0 33.0
PURCHAS % % % % 0% % % %
ING
REASONS
% of Total 18.0% 2.0% 3.0% .0% 2.0% 4.0% 1.0% 1.0% 2.0% 33.0
%
2000 Count 24 4 3 2 5 1 0 1 0 40
1- % within 60.0% 10.0 7.5% 5.0% 12.5 2.5% .0% 2.5% .0% 100.
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
4000 MONTHLY % % 0%
0 HOUSEH
OLD
INCOME
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 31.685a 32 .482
Likelihood Ratio 33.007 32 .418
Linear-by-Linear .006 1 .936
Association
N of Valid Cases 100
a. 42 cells (93.3%) have expected count less than 5. The
minimum expected count is .01.
Symmetric Measures
Asymp. Std.
Value Errora Approx. Tb Approx. Sig.
Interval by Pearson's R -.008 .092 -.080 .936c
Interval
Ordinal by Spearman -.016 .100 -.154 .878c
Ordinal Correlation
N of Valid Cases 100
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
HYPOTHESIS IV
H0 = There is a significant relationship between income group and the 1st information
source for the people.
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
H1= There is no significant relationship between income group and the 1st information
source for the people.
SHOWROOM
FRIENDSFAMILY/
MAGAZINE
WEBSITE/BLOGS
TVCF
NEWSPAPER
AUTOEXPO
ROADSHOW/TES
OTHERS
TRIDE
MONTHLY HOUSEHOLD INCOME
UPT Count 5 4 1 3 3 0 1 0 0 17
O % within 29.4 23.5 5.9% 17.6 17.6% .0% 5.9% .0% .0% 100.0
100 MONTHL % % % %
00 Y
HOUSE
HOLD
INCOME
% within 11.1 16.7 20.0% 25.0 60.0% .0% 33.3% .0% .0% 17.0%
SOURC % % %
E OF
AWARE
NESS
% of 5.0 4.0% 1.0% 3.0 3.0% .0% 1.0% .0% .0% 17.0%
Total % %
100 Count 16 8 1 3 1 2 1 1 0 33
01- % within 48.5 24.2 3.0% 9.1 3.0% 6.1% 3.0% 3.0% .0% 100.0
200 MONTHL % % % %
00 Y
HOUSE
HOLD
INCOME
% within 35.6 33.3 20.0% 25.0 20.0% 50.0% 33.3% 100.0 .0% 33.0%
SOURC % % % %
E OF
AWARE
NESS
% of 16.0 8.0% 1.0% 3.0 1.0% 2.0% 1.0% 1.0% .0% 33.0%
Total % %
200 Count 20 11 3 4 1 0 0 0 1 40
01- % within 50.0 27.5 7.5% 10.0 2.5% .0% .0% .0% 2.5% 100.0
400 MONTHL % % % %
00 Y
HOUSE
HOLD BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
INCOME
% within 44.4 45.8 60.0% 33.3 20.0% .0% .0% .0% 100. 40.0%
SOURC % % % 0%
E OF
Chi-Square Tests
Asymp. Sig. (2-
Value df sided)
Pearson Chi-Square 30.288a 32 .553
Likelihood Ratio 28.748 32 .632
Linear-by-Linear .274 1 .601
Association
N of Valid Cases 100
a. 40 cells (88.9%) have expected count less than 5. The
minimum expected count is .01.
HYPOTHESIS V
H0 = There is a significant relationship between age group and the choice of features
they value most in a two wheeler.
H1= There is no significant relationship between age group and the choice of features
they value most in a two wheeler.
RIDING Count 3 5 2 2 12
COMFORT % within PURCHASING 25.0% 41.7% 16.7% 16.7% 100.0%
REASONS
% within AGE 10.7% 12.2% 10.0% 18.2% 12.0%
NEW Count 1 4 3 0 8
TECHNOLOGY % within PURCHASING 12.5% 50.0% 37.5%
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA.0% 100.0%
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 22.567a 24 .545
Likelihood Ratio 26.816 24 .313
Linear-by-Linear .917 1 .338
Association
N of Valid Cases 100
a. 32 cells (88.9%) have expected count less than 5. The
minimum expected count is .11.
Symmetric Measures
Asymp. Std.
Value Errora Approx. Tb Approx. Sig.
Interval by Pearson's R .096 .102 .957 .341c
Interval
Ordinal by Spearman .084 .100 .838 .404c
Ordinal Correlation
N of Valid Cases 100
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
HYPOTHESIS VI
H0 = There is a significant relationship between age group and the 1st information source
for the people.
SHOWROOM Count 1 8 2 1 12
% within 8.3% 66.7% 16.7% 8.3% 100.0
SOURCE OF %
AWARENESS
% within AGE 3.6% 19.5% 10.0% 9.1% 12.0%
SOURCE OF AWARENESS
BBS INSTITUTE%OF
within AGE
MANAGEMENT 14.3%
STUDIES, 2.4%
GREATER.0%
NOIDA .0% 5.0%
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 30.503a 24 .169
Likelihood Ratio 32.730 24 .110
Linear-by-Linear 7.581 1 .006
Association
N of Valid Cases 100
a. 31 cells (86.1%) have expected count less than 5. The
minimum expected count is .11.
OBSERVATION: 2: TVCF & Family/friends are the major source of info in every group.
OBSERVATION: 3: Chi square test has an asymptotic significance greater than 0.1
hence there is no significant relationship between the variables, hence H0 is rejected
1. PREMIUM SEGMENT
2. DELUXE SEGMENT
3. EXECUTIVE SEGMENT
4. ENTRY SEGMENT
1. PREMIUM SEGMENT
2008
Ex- % resale
Company Model showroom value ‘09 2007
price
In the premium segment we have taken Yamaha R15, Hero Honda’s KARIZMA
and CBZ and BAJAJ’s PULSAR 200. The resale value of R15 is highest in
premium segment and is at 82.11%.
• Reason
- Performance
- Quality of product
- High level of Satisfaction
So we can say that in the premium segment bikes YAMAHA is leading in second hand
two wheeler markets.
2. DELUXE SEGMENT
In this segment also YAMAHA is leading with 93.84% of resale value. Dealers and
brokers were giving good response for the YAMAHA FZ 16, they were saying customer
is satisfy with its all facilities, everybody is appreciating for its style, design and macho
look. In the Deluxe segment TVS APACHE & HUNK as well PULSAR 150 is giving close
fight to YAMAHA FZ16.
3. EXECUTIVE SEGMENT
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
Company Model Ex- % 2009 2008 2007
price resale
value
Yamaha Glad ss 52,100 71.51 38,000 30,000 26,000
4 .ENTRY SEGMENT
CHAPTER 8.0
RECOMMENDATION
• SHOULD IMPROVE THE AFTER SALE SERVICES: During the survey we found
that Yamaha is not satisfying their customers in after sales services, employees at
dealership sometimes use harsh words and become rude to the customers, parts of
the bike are not easily available in the market. This is the major drawback in
capturing the market share so Yamaha should take some better steps to satisfy and
retain their customers.
• WEAK FOLLOW UP FROM DEALERSHIPS: We observed during the course of our
studies that Yamaha was quite weak in following up with prospective customers.
There was no communication from Yamaha showrooms asking the customers if and
when they are willing to buy their bikes. Hero Honda, Bajaj and Honda showrooms
BIBLIOGRAPHY
&
REFERENCES
ANNEXURES
10.1 QUESTIONNAIRE
QUESTIONNAIRE
(For FZ customers)
Contact- Place:
Model: cc:
Date of purchase:
1. Name: 2. Age:
8. Did you considered other motorcycle while buying this model? a) Yes b) No
14. What was the reason you finally purchased your Bike?
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
a) Style/design b) Mileage c) Resale value d) Reputation of maker
e) Riding comfort f) Pick up g) Controllability h) new technology
i) Maneuverability j) Riding position k) Quality l) Color/ graphics
m) Big vehicle size n) Durability o) Price p) Low maintenance
q) After sales support r) others: _______
16. Do you think Yamaha has improved after FZS and R15? a) Yes b) No
ON
YAMAHA
The 3.8 million two-wheeler market in India included scooters, motorcycles and mopeds.
In the late 1990s, the domestic two-wheeler industry had undergone many structural
changes. Motorcycles consistently gained market share from the scooter and the moped
. The trend was expected to continue in 2001-02. 150cc vehicles from Bajaj Auto and
LML dominated the scooter market. Northern India was the major market accounting for
nearly 46% of the total scooter sales. The Indian motorcycle market could be broadly
categorized into Indian motorcycles and Indo-Japanese motorcycles. The Hero group,
Bajaj and Escorts dominated the Indo-Japanese motorcycle segment in collaboration
with Japanese vehicle manufacturers Honda, Kawasaki and Yamaha respectively.
Premium Executive
segment segment
Deluxe
segment
This category basically includes: People living in rural areas ,Hero Honda is market
leader In this segment as they have penetrated in to rural areas covering 550000
people in rural areas only For ex : Bikes in this segment are like Crux,CD dawn ,CD
Delux ,Patina ,Star City , Star Sports , Heat
This category includes: Office goers, Family oriented persons ,Whose Income varies
between 2 to 3 lakhs , Finance is very important for this segment For ex – Yamaha
Gladiator comes in this segment as they have specially made the sitting style of the bike
as per this segment people. Bikes in this segment : G5 , AlBA , Passion Pro,Splendor
+ ,XCD 135 ,XCD 125 , Splendor NXG ,Platina .
Strength
Established brands, Strong Brand Name
Fuel efficient
Weaknesses
Style statement
Extremely price sensitive
Convenient in heavy traffic
Short PLC
Cheap and affordable
High R and D costs
Easy and cheap finance availability
Patents
Good reputation among customers
Opportunities Threats
Growing premium segment The Rs.1 Lakh car
Increasing dispensable income Cut throat competition
Environmental concerns Increasing number of players in the market
Exports increasing Rising raw material costs
Very strong demand in the 100cc. segment Increasing rates of interest on finance
dominated by limited players.
Established in 1945 Bajaj Auto Ltd was incorporated as a trading company. Till 1959,
they imported scooters and three-wheelers from Italy and sold them in India. The
company got a production license in the year 1959 and fastened a technical
collaboration with Italian PIAGGIO in 1960.
Bajaj Auto Ltd. is one among India's top ten companies in terms of market capitalization
and among the top five in terms of annual turnover.
Today, the company has become a market leader. These days, Bajaj Auto Ltd. has
started offering products in all segments (mopeds & scooterettes, scooters, motorcycles,
three wheelers).
The company has been known for its ruggedness and reliability.
TVS Motor has continually worked on innovation of the motorcycle
segment along with two wheeler range. The Suzuki Shaolin, developed by TVS Suzuki is
India's first 5-speed, 140 cc motorcycle. Another example of the company success is
TVS Scooty, a 60 cc Scooterette which keep one step ahead of its time in India..
The company is the third largest two-wheeler manufacturer in India and ranks among the
top ten globally. The company was the first in India to launch 2-seater 50cc moped and
100cc Indo-Japanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty,
TVS Centra and TVS Fiero are the popular bikes in Indian market.
The corporate philosophy of Royal Enfield Motors Ltd. is built around quality and
unflinching loyalty to the customer, a few reasons why the legendary Bullet is not just a
bike but a motorcycling icon. The ruggedness and reliability of the bike is endorsed by
the army, the police, the paramilitary forces and over 500 institutions which form part of
the die-hard customer base of the Bullet, dubbed the "Rajagadi", or royal vehicle.
At the end we can say that all the above are giving a very tight competition to
INDIA YAMAHA MOTORS in India. To overcome these competitors YAMAHA is
constantly doing R & D about its product and market as well.
CORE COMPETENCIES
Customer #1
We put customers first in everything we do. We take decisions keeping the customer in
mind.
Challenging Spirit
We strive for excellence in everything we do and in the quality of goods & services we
provide. We work hard to achieve what we commit & achieve results faster than our
competitors and we never give up.
Team-work
We work cohesively with our colleagues as a multi-cultural team built on trust, respect,
understanding & mutual co-operation. Everyone's contribution is equally important for
our success.
Frank & Fair Organization
We are honest, sincere, open minded, fair & transparent in our dealings. We actively
listen to others and participate in healthy & frank discussions to achieve the
organization's goals.
OVERVIEW
SALES: 1,756,707 million yen (from Jan 1, 2007 to Dec 31, 2007)
PARENT: 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007)
SALES PROFILE
Beginning Of A Journey
(Beginning Of a Marriage )(Escort Yamaha Tie The Not)
In 1985, Yamaha Motors entered into a technical support agreement with Escorts, and
started local production of Yamaha motorcycles. In 1995, Yamaha and Escorts signed
another contract, establishing EYML to manufacture and market motorcycles in India.
Each company invested 50% of the capital for the original venture EYML produced a
wide range of motorcycles for the urban and rural markets at its Faridabad (Haryana)
and Surajpur (Uttar Pradesh) plants. The joint venture manufactured Rajdoot
motorcycles at Faridabad and the RX and four-stroke YBX series at Surajpur...
Yamaha believed that operating on an individual basis would help in building its separate
Brand Name.
A strategy was formulated in order to facilitate new product launches and the entire
Marketing policy was overhauled.
As part of the strategy, Yamaha Motors also planned to convert its India operations into
a sourcing base for parts and fully-built two-wheelers.
In essence the decision to separate was on grounds of mutual consent by both parties. It
made business sense to part ways now and the timing could not have been better in the
light of prevailing competitive environment.
Following are the main 8 changes which have been implemented after Yamaha Parted
its way from Escorts
3. Japanese work ethos – They are built around a single minded devotion to discipline.
No employee is offered preferential treatment and some rules apply for everybody. If
your Japanese manager walks in at 8:45 for a 9’o clock shift, imagine the example it sets
for subordinates. That’s exactly what happened at Yamaha Motors India strict financial
penalties were put in place for those who reported late at work.
4. Developing Team Spirit - every employee was given the same uniform. Regardless of
the fact that whether you are a Foreman or Chief General manager, everyone is
expected to turn up in the same uniform. The obvious benefits are an increased sense of
camaraderie and team spirit.
7. Quality Conscious: Japanese are a quality conscious breed who has traditionally
believed that a technologically superior product will sell itself against any competition.
After Yamaha took over, every six months, a batch of 4-5 employees is selected to be
trained at the Yamaha production plant in Japan. . They also get a first hand experience
of Japanese work culture and discipline.
Yamaha is still to turn the corner in the highly competitive motorcycle market. However,
Yamaha has recognized the enormous potential of the market and it’s penchant to
switch brands according to latest trends and technology. The profits are showing an
upward trend recently. The progress made is painstakingly slow but sure Employees at
all levels showcase a deep rooted belief that their company can once again repeat the
success stories of mid 1990s.
Yamaha has shifted its focus from the lower end segments to the premium segment of
bikes. It aims to provide its customers the full range of its engineering marvels that make
Yamaha the company that it is. Yamaha has a very strong focus on the technical
department, the result of which can be seen with Yamaha comfortably leading the
constructor’s championship in the Superbikes racing with Valentino Rossi and Colin
Edwards as their riders.
Yamaha has aimed to become the No.1 in customer satisfaction and is looking forward
to providing the customer with an ‘experience’ with its products.
The target market of India Yamaha Motors is the young and enthusiastic 18-25 yr. olds
who are willing to try taking the not so much treaded path of buying the ‘sports bike’
rather than a ‘utility two wheeler’. These young guns are very conscious of the style
quotient and look forward to their ride being a personality statement.
With the increasing dispensable income in India and growing middle and upper middle
class segment Yamaha is sure to find many prospective customers. With news of India
becoming the breeding ground for millionaires Yamaha has certainly identified an
opportunity and has grabbed it hands down.
So the Yamaha’s Strategies to get success are :
Product : India Yamaha Motors has recently launched its sports bike R15 and FZS in
the 150cc. The bikes in the premium segment include MT01 and YZF R1. Yamaha is
bringing its latest technologies to India and aims to come up with a new product for the
Indian market every quarter.
The reliability and riding quality of a Yamaha have already been established through its
earlier products.
Price: The Yamaha range of products has been very competitively priced and the
prices of its premium segment bikes MT01 and YZF R1 are priced much below any
present or prospective competitor in the segment at Rs.10.5 lacs.
Its other products like the R15 has also been priced optimally looking at the
specifications of the bike. The bike despite being only 150 cc provides around 22 BHP of
power, more than any other bike in the 150-220cc. bracket. The bike has also brought
the liquid cooled engine technology to India and other features like the styling etc. are
also quite new for the Indian market and hence considering what it gives you it is a
bargain at Rs.97, 500.
Promotion: Yamaha has been constantly loosing market share over the last few
years and has thus decided to change its brand image with change in its market
strategy. The company now wants to be known for its style and speed. It looks to be
known as a sports bike manufacturer and not as an economy bike segment player.
Taking these factors into consideration the company has started a complete makeover
of its image. The recent R15 and FZS ads on numerous channels on TV and other ads
on both electronic and print media vindicate the point.
The company has also opened ‘Yamaha bike stations’ which are company owned
showrooms and completely symbolize the brand image that Yamaha wants to achieve in
India.
Place: India Yamaha Motors has adopted a two tier marketing channel consisting of
the Primary dealers at tier1 and the secondary dealers or retailers at tier2. In addition to
these two tiers there are also the ‘company owned showrooms’ and the multibrand
outlets.
In order to Execute its Above Strategies Yamaha has Recently Launched Its
Two Brand New Motor Cycles Fzs & R15 Which have been highly
appreciated by the Indian consumers , Following are the main features of
its new bikes .
YAMAHA FZ-S
Yamaha FZ-S 150cc, a recently launched bike by the industry giant Yamaha. After the
grand success of FZ-16 Yamaha has finally launched its modified version (FZ-S) in
India. This fabulous bike is equipped with all the necessary features one may think of. It
stands ahead in style and performance not only in its segment but beyond. This bike is
best suited for those who want elegance and power in one. It is designed and
engineered with the capacity for active and aggressive enjoyment of around-town street
riding and styling, bringing a sense of pride for the owner of the bike. It is especially
designed to satiate riders' desire for style and fashion. It is popularly referred as the
“Stylish Macho Street Fighter” (Lord of the Streets).
FUTURE LAUNCHES
YAMAHA R125
The most advanced 125 production super sport
machine that Yamaha will launch in 2009 will be
YZF-R125. This radical, high-revving, fuel-injected
125 is the work of the same engineers who created
our legendary YZF-R1 and YZF-R6 super sport
bikes.
Expected In: July, 2009
After The Separation Main focus of Yamaha has been to Capture the Indian Market
Through its Product Which are Best In terms Of style & Design and is trying to achieve
the target of 14% which it has laid down for the coming years its Recent Launched Bike
FzS & R15 have shaken the market leader Like Bajaj & Hero Honda & is giving them a
tough competition & soon going Launch Few More Bikes in the market. But in a country
like India where customer generally appreciates mileage it becomes necessary for a
company like Yamaha which produces Bikes whose prices are towards the higher end to
focus on other factors too which influence the consumer choice of Product like Prices ,
After sale services and Many more.
INDIA are not satisfied with the after sales services and pricing of the product.
YAMAHA There were significant findings in the customer perception &
MOTORS
satisfaction study showing the impact of Gender, Income and Age on
their choice of brands and other features in the bikes.
Implications: The study would be of great help to the company giving
out valuable insights about to improve their after sales services and
would help in planning to reduce the prices as well as about the factors
affecting customer choices.
Perception of Industry Guide: Our industry guide was extremely
knowledgeable and helped us in understanding the dynamics governing
the industry. He was a constant guide in every step towards the
completion of this project. He not only provided us with subjective
knowledge but also emphasized on us being groomed for the corporate
world and follow the virtues of discipline, dedication and righteousness
towards the path of success.
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA
BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA