Summer Training Project Report

SUMMER TRAINING PROJECT REPORT ON

“MEASURING CUSTOMER SATISFACTION LEVEL” AND

“SALES PROMOTION”IN

YAMAHA AT

LAKHIMPUR and UNNAO

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT OF MBA DEGREE

(2011-2013)

BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

SUBMITTED TO:Prof. Yash Shridhar

SUBMITTED BY:Lalit Kumar Singh

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide MR.JANARDAN SAANA Marketing

Manager INDIA YAMAHA MOTORS, for his able guidance, continuous support and

cooperation throughout my project, without which the present work would not have been

possible.

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.

HEMRUDRA PRATAP SINGHMBA III Sem.


Candidate declaration

I hereby declare that the work which is being presented in the project report entitled Measuring Customer Satisfaction level and Sales promotion in the partial fulfillment of the requirement for the award of Master of Business Administration of BBS Institute of Management Studies, Greater Noida of Uttar Pradesh Technical University, Lucknow is record of my own work and was carried for a period of two months under the guidance of Mr. Janardan Saana (Marketing Manager,North India) of commercial work of Marketing Department Yamaha India Motors.

HEMRUDRA PRATAP SINGHMBA III SEM.


TABLE OF CONTENTSChapter No.

Topic

1.0 Industry Profile


1.1 Competitors Analysis

1.2 Company Profile

1.3 Swot Analysis

1.4 Swot for Two wheeler Industry

1.5 Swot for India Yamaha motors

1.6 Recent Launches

1.7 Future Launches

2.0 Critical Review of Literature

3.0 Hypotheses

4.0 Executive Summary

5.0 Research Design 5.1 Data Source

5.2 Research Approach

5.3 Objectives

5.4 Research Design

5.5 Sample Design

5.6 Scope of Study

5.7 Limitations of the study


6.0 Data

Primary Data

Secondary Data7.0 Findings & Analysis

6.1 Results of Customer Survey

6.2 Hypotheses Tests

8.0 Recommendations

9.0 Bibliography and References

10.0 Annexure 9.1 Tables 9.2 Graphs 9.3 Questionnaire

11.0 Case Study


Chapter 1.0


1.1 Competitors Analysis

1.2 Company Profile

1.3 Swot Analysis

1.4 Swot for Two wheeler Industry

1.5 Swot for India Yamaha motors

1.6 Recent Launches

1.7 Future Launches


1.0 INDUSTRY PROFILE

AUTOMOBILE INDUSTRY TILL DATE

The automobile industry is one of the biggest industries in the world. Being a major

revenue and job generating sector it drives the economies of some of the superpowers

of the world. In India the automobile industry has grown by leaps and bounds since the

advent of the liberalization era the automobile industry and especially the two wheeler

segment has grown by leaps and bounds.

The liberalization has done away with primitive and prohibitive practices of licensing and

restricted foreign investment have been done away with. The result of which was the

entry of foreign players into the Indian market. The two wheeler segment was largely

dominated by Automobile Products of India (API) and Enfield in the 50s. Later on

towards the end of the 50s Bajaj Autos began importing Vespa scooters from Italian

company Piaggio. In the following decades the automobile industry in India was mainly

dominated by scooters with API and later Bajaj dominating the market. There were very

few products and choices available as far as motorcycle is concerned and Enfield bullet

and Rajdoot dominated the market.

The 80s saw the entry of Japanese companies in the Indian market with the opening up

of the market to foreign companies. Hero Honda and TVS Suzuki are companies formed

in this era of market reform. The market was still predominantly scooter dominated and

Bajaj and LML were the leading brands producing the products at that time. Scooter was

viewed as a more family and utility friendly vehicle than motorcycle and hence was

preferred.

The Japanese companies not only collaborated with Indian companies to produce the

already existing products but also brought in new technology as a result of which the

ever conquering 100cc bikes which were extremely fuel efficient with 4 stroke engines

were launched in India. These proved to be highly successful as they provided a cheap

and affordable means of personal transport to all those who could not buy a car. The

flourishing middle class took a great liking for these bikes and the bike sales in India


began to grow exponentially year on year leading to Hero Honda becoming the leader in

the two wheeler industry in India and the largest producer of two wheelers in the world.

The post 90s era was the era of liberalization and weakening of restrictive measures.

The government went on an overdrive to support the industry and all FDI regulations and

licensing was abolished. 100% FDI was allowed in the automobile industry and the

excise duty was also considerably reduced to its current level of 12% on two wheelers.

All these factors combined with the rising fuel prices, the increasing dispensable

incomes of households, easy access to finance, etc. have led to two wheeler industry

becoming the backbone of the automobile industry in India.

The two wheeler industry in India forms a major chunk of the automobiles produced in

India. According to Society of Indian Automobile Manufacturers statistics for the year

2008 – 2009, two – wheelers comprise 76.49% of market share among the vehicles

produced in India.

The production share of two wheelers is quite similar to the market share. The two

wheeler industry comprises around 74% of the total automobiles produced in India. The

SIAM data for the year 2008-09 states that 8,418,626 two wheelers were produced

during the year against a total of 11,175,479vehicles produced during the year.

SEGMENTATION OF TWO WHEELER

A Two Wheeler Sector Sub-Segmenting in the three Segments.

1. Motorcycle2. Scooter3. Mopeds


Domestic Market Share 2008 – 09Commercial Vehicles 3.95%

Total Passenger Vehicles 15.96%Total Two Wheelers 76.49%

Three Wheelers 3.60%

1.1.1 Domestic Market Share 2008-09


1.1 The Domestic Market Share of Two wheelers in 2008-09

PAST YEAR REPORT

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.


1.2 Comparative Analysis of Domestic Sales of Automobiles 2008-09

1.3 Sales trend of automobiles for the last several years


Production Trend

If we compare to the last year production of two wheelers it was around 8,026,681 out of

10,853,930 but this year we have got growth of 1.78%, this year production of two

wheelers is around 8,418,626 out of 11,175479 total automobile productions.

1.4 The Production trend of Automobiles for several years

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 export of automobiles from India has been constantly growing and with the

slowdown in the domestic market, the major companies are focusing on exporting much

more to increase their profit margins.

GROWTH PROSPECTS AND KEY DRIVERS OF INDIAN TWO WHEELER INDUSTRY

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

Rise in India’s Young Working Population

With the rising levels of per capita income of people, the Indian two wheeler market

offers a huge potential for Growth. This growth is relevant in the light of the fact that 70

per cent of India’s population is below the age of 35 Years and 150 million people will be


added to the working Population in the next five years. The number of women in the

urban work force is also increasing; this will lead to the Growth of gearless scooters.

Rise of India’s Rural Economy and Growth in Middle Income Households

The growth prospects of the Indian rural economy offer a significant opportunity for the

motorcycle industry in India. The penetration of motorcycles amongst rural households

with income levels greater than US$ 2,200 per annum has already increased to over 50

per cent. The current target Segment for two wheelers, i.e., households belonging to the

Income category of US$ 2,200–12,000 is expected to grow at a CAGR of 10 per cent.

Greater Affordability of Vehicles

The growth in two-wheeler sales in India has been driven by an increase in affordability

of these vehicles. An analysis of the price trends indicates that prices have more or less

stagnated in the past. This has been part of the marketing strategy adopted by the

manufacturers to gain volume, as well as conscious efforts adopted to bring down costs.

The operating expenses of leading manufacturers have declined by around 15 per cent

in the last five years. With greater avenues of financing, the customer’s capacity to own a

two wheeler has improved.

Rapid Product Introduction and Shorter Product Life Cycle

The last five years have witnessed a sharp increase in new product launches in the two-

wheeler industry. It is estimated that close to 50 new products have been launched by

manufacturers during this period, filling up all price points and targeted at various

consumer segments.

Inadequate Public Transport Systems in most Urban Areas

The economic boom witnessed in the country and the increased migration to urban

areas have increased the traffic congestion in Indian cities and worsened the existing

infrastructure bottlenecks. Inadequate urban planning has meant that transport systems

have not kept pace with the economic boom and the growing urban population. This has

increased the dependence on personal modes of transport and the two wheelers market

has benefited from this infrastructure gap.


FACTORS AFFECTING THE MARKET

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.

Rising Customer Expectations

The growth witnessed by the Indian two wheeler industry has attracted a number of new

entrants to the market and it is expected that the Indian industry will become more

competitive in the future. The excess of products introduced in the past has also raised

customer expectations with respect to reliability, styling, performance and economy.

Inflation is a big factor that may play a part in moving the loyalties and aspirations of

people away from the four to the much cheaper and economical two wheeler segment.

Moreover, the constantly increasing prices of oil and increasing interest rates on finance

are not helping the cause either.

Environmental Concerns are also quite big on the agenda these days and do play a part

in the preference of consumer’s choices. The rising global temperatures along with daily

snippets in the national and international media about the thinning of ozone and

imminent environmental disaster have all contributed to the making of a present day

environmentally conscious consumer.

Environmental and Safety Concerns

The increasing demand for two wheelers will need to be managed to address issues

relating to overcrowding of roads. Another problem is the insufficient infrastructure for

inspection to ensure adherence to emission norms. As the industry grows, it is important

to regulate the sale of used two wheelers in a more organised manner for which a

mechanism needs to be evolved. Unregulated sale of two wheelers, especially in the

rural areas, are likely to create issues related to emissions and safety of vehicles.


Creation of Distribution Infrastructure

Leading companies need to ensure that on one hand they build adequate infrastructure

in terms of dealerships and servicing stations in the urban areas and on the other ensure

that their distribution infrastructure also reaches the rural areas

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.


`

The Key Players…

Bajaj Auto, Piaggio IndiaThree Wheeler

Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinet ic MotorsTwo Wheeler

TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra & Mahindra, Daimler Chrysler, Hindustan Motors

Passenger vehicle

TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Force motors, Eicher Motors

Commercial vehicles

Bajaj Auto, 24.4%

TVS Motors, 17.7%

Yamaha, 3.8%

Others, 5.8%

Honda Motors, 8.5%

Hero Honda, 39.8%

Maruti, 50.37

Hyundai, 19.17

Tata Motors, 17.19

Honda, 5.33

Others, 5.73

Two wheeler Passenger vehicle


1.1COMPETITORS ANALYSIS

1. Bajaj Auto Ltd.

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


started offering products in all segments (mopeds & scooterettes, scooters, motorcycles,

three wheelers).

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 Pulsar 180 DTS-i UG Pulsar 150 DTS-i UG Pulsar 200 Cc

Pulsar 220 DTS-Fi

180 CC150 CC200 CC220 CC

Bajaj Wind 125 124.6 CC

Bajaj XCD 125 CC

>> SCOOTERS

Bajaj Bravo 145 CC

Bajaj Chetak 145.45 CC

Bajaj Classic SL 145.45 CC

Bajaj Legend 150 CC

>> SCOOTERETTES/MOPEDS

Bajaj Blade DTSi 100 CC

Bajaj Cagiva CRX 145 CC

Bajaj Fusion 145 CC

Bajaj Kristal DTSi 100 CC

Bajaj M 80 Electronic 74.08 CC

Bajaj Rave 74.08 CC

Bajaj Saffire 74.4 CC

Bajaj Spirit 100 CC


http://auto.indiamart.com/bajaj-auto/

Bajaj Sunny 59.86 CC

Bajaj Sunny Spice 59.86 CC

Bajaj Wave DTSi 109.7 CC

AWAITED MODELS

Sonic DTSi Motorcycle

1.1.2 Models of BAJAJ

2. Hero Honda Motors Ltd.

Hero Honda Motors Ltd. is a result of the joint venture between

India's Hero Group and Japanese Honda Motors Company in

the year 1983. This joint venture has not only created the

world's single largest two wheeler company but also one of the

most successful joint ventures worldwide. Hero Honda is

globally known of being the most fuel-efficient and the largest

CBZ selling Indian Motorcycle Company. This is a relationship so harmonious that Hero

Honda has managed to achieve indigenisation of over 95 percent, a Honda record

worldwide.

The below chart shows the golden years in the history of HERO HONDA :-

1985 CD-100

1989 SLEEK

1991 CD-100 SS

1994 Splendor

1997 Street

1999 CBZ

2001 PASSION

2002 DAWN, AMBITION

2003CD-DAWN, SPLENDOR +, PASSION +,KARIZMA

2005SUPER-SPLENDOR, CD-DELUX, GLAMOUR, ACHIEVER


1.1.3 Golden Years of HERO HONDA

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 Glamour Glamour

Glamour - FI

Hero Honda Splendor Splendor +

Super Splendor

Splendor NXG

Hero Honda Passion Plus


Hero Honda Sleek Hero Honda CBZ X-TREME Hero Honda Karizma

Hero Honda Hunk


Hero Honda Pleasure Hero Ankur Hero Gizmo

Hero Panther Hero Puch Automatic Hero Sakhti 3G

Hero Stepmatic Hero Street Hero Winner

Hero Stepmatic Hero Puch Automatic Hero Sakthi 3G

Hero Winner

1.1.4 Hero Honda Models

3. Honda Motorcycles & Scooters India Private Limited

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


MODEL CAPACITY

Honda Aviator 102 CC

Honda Activa 102 CC

Honda Dio 102 CC

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 Deming Prize for Total Quality Management. In September 2008, the company has

got 19% growth for registering total two wheeler sales of 137,246 units.

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.

1.1.6 TVS models

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 Victor GLX TVS Victor GX

TVS Victor Edge

TVS Star TVS Star

TVS Star City


TVS Scooty Streak TVS Scooty TVS Scooty ES TVS Scooty Pep

TVS Pep Plus

TVS XL TVS XL Super

TVS XL Super HD


TVS XL Super TVS XL Super HD Scooty Teenz Electric

TVS Apache RTR TVS Spectra DX/AX

AWAITED MODEL

TVS Taurus Fiero F3

5. Royal Enfield Motors Ltd.

Established in 1955, Royal Enfield was the brand of the

Enfield Cycle Company. Royal Enfield is one the oldest

bike on the road. The company is well known for

producing motorcycles, but they also produce bicycle,

stationary engines, lawnmowers and rifle small parts for

the Royal Small Arms Factory in Enfield. Royal Enfield Motors Ltd. has its headquarter

situated at Thiruvottiyur, Chennai, Tamil Nadu, India.

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.

The innovative ideas of the Royal Enfield -Eicher nexus are exhibited in the new line of

Enfield bikes and the global technological tie-ups.


Royal Enfield has existing technical tie-ups with :

- Criterion Engineers, UK for a new 5 speed transmission system.

- DB Designs, UK for styling.

- AVL, Austria for new engines.

- FW Egli for high power engines for 535cc and 624cc.

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.

1.1.7 Royal Enfield Model

TWO WHEELERS

>> MOTORCYCLE

Bullet 350 Bullet 500 Enfield Diesel

Bullet Deluxe Bullet Electra Bullet Electra

Bullet Electra 5S

Bullet Machismo

Bullet Machismo 500 Bullet Std 12V Lightning 500

Taurus Thunderbird Twin spark


SWOT ANALYSIS

GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCESA Bajaj, Hero Honda Highly diversified

Aggressive promotion

- High buyer power- High competitive rivalry - High entry barriers

B TVS Selectively diversifiedAggressive

- Low entry barriers- Narrow product lines imply


GROUP AGROUP A

GROUP B GROUP B

GROUP CGROUP C

GROUP D

GROUP D

PROMOTIONAL ACTIVITIES HIGH LOW

Low Mobility Barriers Investment in Brand Promotion

High Mobility Barriers, Extensive Distribution & Product Diversification

High Mobility Barriers, Time & Investment required to restore outdated products, build cult image

FULLYDIVERSIFIED

SPECIALISED

SPECIALISATION

Promotion that aggressive promotions can eat into market share

C Honda, Yamaha Selectively diversifiedModerate Promotion

- High threat of substitution (Rs 1 lakh car)- Low entry barriers

D Royal Enfield Highly specializedLow Promotion

- Low buyer power – high brand loyalty- Product diversification will imply risk of brand dilution

1.2 COMPANY PROFILE

About India Yamaha Motor Pvt. Ltd.

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.

India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabad

in Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domestic

and export markets. With a strong workforce of 2000 employees, India Yamaha Motor is

highly customer-driven and has a countrywide network of over 400 dealers.

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

To establish YAMAHA as the "exclusive & trusted brand" of customers by "creating

Kando" (touching their hearts) - the first time and every time with world class products &

services delivered by people having "passion for customers".

MISSION


We are committed to:

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

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

FOUNDED: July 1, 1955

CAPITAL: 48,302 million yen (as of March 31, 2008)

PRESIDENT: Takashi Kajikawa

EMPLOYEES: 46,850 (as of December 31, 2007)

PARENT: 9,019 (as of December 31, 2007)

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)


Sales (%) by region (consolidated)

MAJOR PRODUCTS& SERVICES:

Manufacture and sales of motorcycles, scooters, electro-hybrid bicycles, boats,

sail boats, Water Vehicles, pools, utility boats, fishing boats, outboard motors,

diesel engines, 4-wheel ATVs, side-by-side vehicles, racing karts, golf cars,

multi-purpose engines, generators, water pumps, snowmobiles, small-sized

snow throwers, automotive engines, intelligent machinery, industrial-use remote

control helicopters, electrical power units for wheelchairs, helmets.

Biotechnological production, processing and sales of agricultural and marine

products and microorganisms.

Import and sales of various types of products, development of tourist businesses

and management of leisure, recreational facilities and related services.

HEADQUARTERS: 2500 Shingai, Iwata-shi, Shizuoka-ken, Japan

CORPORATE PHILOSOPHY

For society, for the world …Yamaha works to realizeour corporate mission of creating Kando

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

always been aimed at touching people’s hearts. Our goal has always been to provide

products that empower each and every customer and make their lives more fulfilling by


offering greater speed, greater mobility and greater potential.

Said in another way, our aim is to bring people greater joy, happiness and create Kando*

in their lives. As a company that makes the world its field and offers products for the

land, the water, the snowfields and the sky, Yamaha Motor strives to be a company that

“offers new excitement and a more fulfilling life for people all over the world” and to use

our ingenuity and passion to realize peoples’ dreams and always be the ones they look

to for “the next Kando.”

What is Kando?

Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intense

excitement that people experience when they encounter something of exceptional value.


1.3 SWOT ANALYSIS

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:

SWOT Analysis Framework

Environmental Scan / \

Internal Analysis External Analysis/ \ / \

Strengths Weaknesses Opportunities Threats|

SWOT Matrix


1.4 SWOT ANALYSIS FOR THE TWO WHEELER INDUSTRY

Strength

Established brands, Strong Brand

Name

Fuel efficient

Style statement

Convenient in heavy traffic

Cheap and affordable

Easy and cheap finance availability

Patents

Good reputation among customers

Weaknesses

Extremely price sensitive

Short PLC

High R and D costs

Opportunities

Growing premium segment

Increasing dispensable income

Environmental concerns

Threats

The Rs.1 Lakh car

Cut throat competition

Increasing number of players in the

market


Exports increasing

Very strong demand in the 100cc.

segment dominated by limited

players.

Rising raw material costs

Increasing rates of interest on

finance

1 .5 SWOT ANALYSIS FOR INDIA YAMAHA MOTORS

Strength

Size and scale of parent company.

Effective Advertising Capability

Committed and dedicated staff.

High emphasis on R and D.

Experience in the market.

Established brand.

Established market channel.

Power, Speed & Acceleration

Weaknesses

Small showrooms.

Not much emphasis on aggressive

selling.

Weak product diversity.

Opportunities

Growing premium segment.

Global expansion into the Caribbean

& Central America.

Threats

Cut throat competition

Increasing number of players in the

market


Expansion of target market (include

women).

Increasing dispensable income.

1st mover advantage.

Rising raw material costs

Increasing rates of interest on

finance

1.6 RECENT LAUNCHES

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).

The primary features of Yamaha FZ-S include:


European international design

Stainless steel body

Aerodynamic muscular design

High torque rate

Carbon pattern meter console

Latest graphics

Disk brakes

Electric start starting system

Electronic fuel injection system

YAMAHA YZF R15

This is the latest offering from the Yamaha stable. The YZF R15 is the first truly sports

bike launched in India. The looks and design have been done keeping the bigger R1 in

mind and hence the resemblance.

The bike is priced at Rs.97,500 (ex-showroom) across India. It boasts of the first liquid

cooled 4 valve engine in the two wheeler category which gives it better performance and

power. It is a 150cc bike having enough power to bring chills to the rider when he revs

up the accelerator.


BAJAJ PULSAR DTS FI 220 CC

Bajaj auto has upgraded the Pulsar family with the launch of its high-end bike Pulsar

DTS-Fi 220 cc. This advanced variant of popular Pulsar combines new features and

advanced technology. This all new version of Pulsar is priced at Rs.70, 000 (ex-

showroom Delhi).

The 2009 edition of Bajaj Pulsar comes without fuel injection technology but yet it will

produce more power at 21PS. The new Bajaj Pulsar DTS – Fi 220 cc will reach the top

speed of more than 140 kmph. This two wheeler from India's second largest two-wheeler

manufacturer comes with single cylinder 4 stroke air cooled engine. This motorcycle has

a maximum power of 21.04 @ 8500rpm and maximum torque of 19.12@7500 rpm.

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.

HONDA CBF STUNNER FI

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).

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:-

PGM-FI (Programmed Fuel Injection) Technology

125cc Air-Cooled Four-Stroke Self-Start Engine

Dual Tone Styling

Sporty Half-Chain Case

Bank Angle Sensor

Premium 3-D Emblem

Handle Weight

Premium Key

Stepped-up Seat

Half Fairing

Front and Rear Tubeless Tires

Alloy Wheels BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

THUNDERBIRD TWINSPARK

Launched in year 2008, Thunderbird Twinspark is one of the most stylish bike intended

for those who want and wish to be on top of the world. It is the first model that leads

Royal Enfield revolutionary Unit Construction Engine.

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:

Ergonomically designed high density foam seats

Rear gas filled shock absorber

Heat shield on silencer

Bigger CV carburetor BS-29


Electric starter

Electronic flasher

Multi focal reflector

280mm disc-front brake and 150mm drum-rear brake

Engine – Single cylinder, 4 Stroke, OHV, Dual spark ignition engine, aircooled

Power and Torque - 19.8 bhp @ 5250 rpm/28 Nm @ 4000 rpm

Fuel tank capacity – 15.5±1Liters

SUZUKI HAYABUSA 1300

Price range: Rs 1,248k to 1,252kSuzuki Hayabusa 1300 is the world fastest production bike, the ultimate choice and preference of all bike lovers.


Features:

Some special characteristics of Suzuki Hayabusa 1300 are : 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 :

Solid black/ Metallic majestic gold Pearl nebular black/ Metallic phantom gray

Specifications: Engine capacity - 1340 cm2 (cc) Fuel Tank - 21.0 litres (5.5 US gallons) Type - 4-stroke, 4-cylinder, liquid-cooled, DOHC Compression ratio - 12.5:1

SUZUKI GS 150R

Price range: Rs 57k to 62k

Also known for its attractive appeal, Suzuki GS 150R is styled with inspiration from

Suzuki international super bike GSX-R. Equipped with engine balancer technology, this

bike is designed with a high acceleration performance in low to mid range speed, i.e.

very important for city driving.


Colors:

Candy max orange

Pearl nebular black gray

Metallic flint grey

Candy dark greenish blue

Features:

Equipped with certain unique features like :

150cc engine with new design

Digital speedometer with dual modes

Majestic and stronger fuel tank

Integrated rear turn signal

Rear suspension with separate reservoir tank

Specifications:

Curb mass - 149 kgs

Type - Four-stroke, Air-cooled,SOHC

Displacement - 149.5 cm3 (cc)

Max Power - 13.8bhp@8500rpm

Max Torque - 13.4Nm@6000rpm

Compression ratio - 9.35/1

TVS APACHE RTR FI 160

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.

The new bike Apache RTR FI would come with an 160 cc fuel injected engine


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.

.

1.7 FUTURE LAUNCHES BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

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.

Main Features of Yamaha R125:

-Liquid-cooled single-cylinder 4-stroke

-SOHC 4-valve cylinder head

-Wet-sump lubrication system

-Fuel injection

-Electric start

-6-speed transmission

-R6-style mid-ship muffler

-Dual catalysers

-Air Induction system

Expected In: July, 2009

YAMAHA R6

What you will feel when you on Yamaha's new R6 a

quick progress, not rapid, beneath 70 mph in top,

however erst over the legal limit insignificant six

takes off as if a scolded cat without so a lot of as a

down shift. Drop to moment at this speed and you

will find yourself looking at the sky as everything

disappears behind you at an alarming rate and it will

be interesting to see what the six will do in the

quarter mile.


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

Expected In : July, 2009

YAMAHA GLADIATOR 165

Yamaha's 165cc Gladiator will develop around 16.5

PS and complete a 0 – 60 sprints in less than 5

seconds and it believed that Yamaha has already

sent the bike for homologation and will launch its mid

Next Year. Bike was first displayed in last year’s Auto

Expo.


Displacement: 165cc

Engine: Air-cooled, 4-stroke, SOHC, 2-valve

Maximum Power: 15 Bhp (Expected)

Maximum Torque: 14 Nm ( Expected)

Gears: 5 Speed


DIMENSIONS

Length: 2065.00 mm

Width: 730.00 mm

Height: 1100.00 mm




Expected In : July, 2009

TVS APACHE RTR MENACE 180

180cc version of flagship product apache RTR will be

seen on road by mid 2009. Codenamed as the

menace, the new apache RTR 180cc would come

with few cosmetic upgrades. But what’s more

exciting will be the new powerful 180cc engine.

TVS announced earlier that it would introduce the

ABS (Anti-lock Braking System) in its forthcoming powerful bikes. However the new

apache RTR 180cc menace will not have ABS as it will push up the price. The proposed

200cc version of apache RTR might come with ABS.


Displacement: 180cc

Engine: 4 Stroke, EFi

Maximum Power: 18bhp

Gears: 5 Speed

DIMENSIONS

Length: 2020.00 mm


Width: 730.00 mm

Height: 1100.00 mm

Weight: 130.00 kg




OTHER SPECIFICATIONS

Top Speed: 135kph

Fuel Consumption (City): 28.00

Fuel Consumption (Highway): 42.00


HONDA CBR 150 R

After successfully accepted in Malaysian market. It is

speculated that Honda may bring its CBR 150R in

India by 2009 in competition with Karizma & R15

competitor and may price of CBR150 will be below

one lakh.

The Honda CBR150R is powered by a 149.4cc 4-

stroke carbureted single cylinder 4 valve DOHC engine with 11.0:1 compression and

CDI ignition, mated to a 6-speed wet clutch manual transmission. It produces 18.5 Bhp

at 10500 rpm and 13.5 Nm of torque at 8500 rpm.

Main Features of Honda CBR150R:

- DOHV 4-valve 150 cc water-cooled engine with balancer shaft.

- 6-speed return manual transmission.

- Front and rear disc brakes.

- Key slot cover for better protection against theft.

- Monoshock rear shock absorber.


- Secondary Air Supply System (SASS) which delivers extra air to the exhaust system

for cleaner emission.

- Catalytic Converter.


HONDA INTERCEPTOR

The hunger of Indian sports bikers will be satisfied

with the Honda Interceptor 800cc. Honda VFR 800

Interceptor is a Sports Touring Motorcycle i.e. it is

meant for the highways with a relaxed and

comfortable seating position, unlike the Sports bikes

that we currently see on the road. It’s sleek,

aerodynamic bodywork is functional yet beautiful and air flowing through the

windscreen’s central air vent provides cool air to the rider at low speeds and increases

rider comfort at higher speeds by offering real protection from high velocity winds.


HONDA CBR 1000 RR

The history-making CBR900RR Fire blade

completely rewrote the book of Super Sport

motorcycle design with a remarkably compact and

lightweight configuration based on a ‘Less Is More’

concept that achieved a breathtaking blast of litre-

class performance from a 900cc inline-4 engine

shoehorned into a highly advanced 600cc-class

chassis.

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

racing superbike that also makes for a perfect street bike.



KAWASAKI NINJA 250 R

Made its debut on 1986 Kawasaki Ninja after a

long wait will soon be in India by 2009. The Ninja

250R features a six-speed transmission that has

been revised for smoother shifting, and is mated to a

more durable clutch. An entirely new radiator

provides better cooling while being lighter in weight.

A new radiator fan is quieter.

Its expected price in India will be around 1.3 Lacs


SUZUKI GSX-R 1000

Suzuki GSX-R 1000 offers something different when

compare to other bike in same segment amongst the

usual selling points of superb handling, class leading

performance it offers switchable ECU maps.

With switchable ECU fuel mapping you can switch to

low performance for easy handling in traffic, fuel

economy and when riding with cruisers, medium for

faster rides with the 600cc and full power for the track and Hayabusa owners.


HONDA CBR600RR


Inspired by the Honda RC211V MotoGP the

CBR600RR receives the "RR" designation for "race

replica" because of its emphasis on racing

characteristics such as an advanced braced

swingarm, center-up exhaust system, and more

aggressive riding position.

Features Of Honda CBR600 RR:

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.

Expected In: October, 2009

KAWASAKI NINJA ZX-14

Kawasaki Ninja ZX-14 is created to do everything

right. Right from the beginning. Its aerodynamics


reminds users that Kawasaki is indeed an aircraft maker. The Kawasaki Ninja ZX-14 is

based around Kawasaki motorcycles 1352cc four-stroke engine.

It is an advanced version of Kawasaki’s unique aluminum monologue frame, lightweight

and very strong.

Expected In: November, 2009

Chapter 2.0


CRITICAL REVIEW OF

LITERATURE

2.0 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.

FACTORS INFLUENCING BUYER BEHAVIOUR

A number of factors influence buyer behavior. They can be grouped under three broad

categories.

1. Factors that are part of buyer as an individual.

2. Buyer’s social environment (group influence).

3. Information from a variety of sources.

1. Factors that are part of the Buyer as an individual

An individual’s religion and cultural background, his personality traits, self concept, his

general endowments, his upbringing – in short, his overall biodata – play a crucial role in

his conduct as a buyer/consumer. These factors can be grouped broadly into three

categories:

i. Personal factors

ii. Cultural factors

iii. Psychological factors

I. Personal Factors – Age, Education, Economic Position, Self concept

An individual’s age, level of education, his occupation, overall economic position and

lifestyle all influence his role as a buyer. They decide what products he will buy and

consume. A person’s self concept and his concern about his about status also influence

his buying decisions. In fact today people are very concerned about their image and BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

status in society. It’s a direct outcome of their material prosperity. Status is announced

through various symbols like dress, ornaments, possessions and general lifestyle. The

desire for self expression and self advancement is closely linked with social status. For

several people, status is a major motive force guiding and shaping their life. Their

concept of status decides what material possessions they should have. Even if a product

that constitutes a status symbol is beyond their immediate reach, their aspiration to

possess it will influence their decision making process.

ii. Cultural Factors – Religion, Language etc.

Every culture, every language and every religion group dictates its own unique patterns

of social conduct. Within each religion, there may be several sects and sub sects; there

may be orthodox groups and cosmopolitan groups. In dress, food habits or marriage – in

almost all matters of individual life – religion and culture exercise an influence on the

individual, though the intensity may vary from society to society. The do’s and don’ts

listed out by religion and culture impacts the individual’s lifestyle and buying behavior.

iii.Psychological Factors – Beliefs, Attitudes, Motivation, Perception

Just like the economic and social conditions, a man’s disposition too has a close bearing

on his purchase decisions. Individuals coming under the same economic and social

groups can be vastly different when it comes to certain personal beliefs, faith and

attitudes. One may be timid and plain, while another may be outgoing and aggressive.

One may be traditional in the overall view of life, while another may be modern. One

may be east innovative, while another may welcome anything new. In fact, the maximum

variations are seen here and in the matter of analysis and assessment too, this area

poses maximum problem to the marketer.

2. Buyer’s Social Environment (group influence)

The buyer living in a society is influenced by it and is in turn influencing its course of

development. He is a member of several organizations and groups, both formal and

informal. He belongs to a family, he works for a certain firm, he may be a member of a

professional forum, he may belong to a particular political group, or a cultural body.

There is constant interaction between the individual and the groups to which he belongs.

And all these interactions leave some imprint on him, which influences him in his day to

day life and consequently, his buying behavior. BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

There are two broad types of group influences:

i. Influence of intimate group.

ii. Influence of the broad social class.

I. Influence of Intimate Group

Examples of intimate groups are family, friends, close colleagues and closely knit

organizations. These groups exercise a strong influence on the lifestyles and the buying

behavior of its members. Among these groups the most influential and primary groups

are the family and peer groups. The peer groups are closely knit groups composed of

individuals, who have a common social background and who normally belong to the

same age group. The peer group has the greatest influence on the individual member as

a stabilizer of styles and behavior patterns.

In any intimate group, there is likely to be an informal group leader. Te group respects

him and looks up to him. Though the leader may not directly influence every member in

his day to day purchases, his judgment on men and matters, and facts and fashion is

respected by the group; and his views and lifestyle influences their buying decisions. He

is normally the innovator in the group, who first tries new products and new ideas, and

then, he becomes the propagator of those products and ideas. These opinion leaders or

influencers play a key role in marketing. Marketers often try to reach these leaders first

through advertisements and other means of communication. And if the leaders are

convinced, their groups are likely to follow suit.

ii. Influence of the Broad Social Class

Structurally, the social class is a larger group than the intimate groups. The constitution

of a social class is decided by the income, occupation, place of residence, etc. of the

individual members. The members of a social class enjoy more or less the same status

or prestige in the community. They share a common lifestyle and behaviour pattern. And

they normally select a product or brand that caters to their class norms. Often they even

do their shopping in the same shopping are and patronize selected shops, which befit

their class image. This does not mean that all the members of a given social class will

buy the same products and the same brands or conform to the same style, amounting to

a sort of regimentation. Differential liking may exist among the members. But, in a buying

situation in which objective standard are not available to guide them, they may conform BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

to the ‘class norms’. Studies have shown that the extent of influence the social class has

on its members will depend on the extent of attractiveness of the group holds out to

them. The greater the attractiveness, the larger is the behavioral conformity.

Study of group influence on the individual buying behaviour will help the marketers to

develop right strategies for different customer segments. It is not feasible for them to

appeal to the fancies of every individual buyer. They can find ’commonalities’ or ‘pattern’

among specific groups of buyers and work on them.

iii. Information from various sources

The buyer today is exposed to a veritable flood of information, unleashed on him from

different sources. These sources inform him about new products and services, improved

versions of existing products, new uses for existing products and so on. The information

sources that persuade people to try a product include: advertising, samples and trials,

display in shops and salesmen’s suggestions.

Each of these sources provides some information to the buyer about the products. When

the buyer sees an advertisement for a product, he is informed about the existence of the

products. Later on, he may develop a positive or negative attitude towards the product or

he may remain neutral. In any case, a piece of information about the product is made

available to him and it has some influence on his buying behavior.

The availability of the product in the shop itself acts as an information source to te buyer.

The buyer may evince an interest in the product and may inquire about it. The product

advertises itself.

Often salesmen serve as a source of information to buyers. The salesmen may inform

the prospects about a product, explain its advantages and may even suggest a trial

purchase. In cases where a rapport has already been established between the buyer

and the salesman, the latter’s suggestions are normally taken as reliable.

THE BUYING PROCESS


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.

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.


THE YAMAHA STRATEGY IN INDIA

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.

THE 4 P’S FOR INDIA YAMAHA MOTORS

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.


CHAPTER 3.0

HYPOTHESES


3.0 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


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


H0 = There is a significant relationship between age group and the choice of features


H1= There is no significant relationship between age group and the choice of features


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.


CHAPTER 4.0

EXECUTIVE SUMMARY


4.01 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.

To meet the research objectives, following activities have been performed.

2. An extensive search of relevant literature from news articles, internet, books. This

step guided the development of the methods and instruments for collecting data.

3. Designing the questionnaire.

4. 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.

5. Analysis was done on the basis of the information.

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


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.


Chapter 5.0

RESEARCH DESIGN

5.1 Data Source

5.2 Research Approach

5.3 Objectives

5.4 Research Design

5.5 Sample Design

5.6 Scope of Study

5.7 Limitations of the study


5.0 RESEARCH METHODOLOGY

The report has been prepared on the basis of information collected from different sources.

In order to achieve the objective of the project proper research method was applied.. After

giving through brain storming session, objectives were selected and the set on the base of

these objectives, A questionnaire was designed major emphasis of which was gathering

new ideas or insight so as to determine and bind out solution to the problems.

5.1 DATA COLLECTION SOURCE

Research included gathering both primary and secondary data. :

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.

5.2 RESEARCH APPROACH

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.

5.3 OBJECTIVES

To know the customer’s perception regarding launch of new bikes FZ & FZS by Yamaha.

To determine the customer’s satisfaction regarding bikes and after sales service.

To determine the factors influencing the choice of customers regarding bikes

To know the market scenario of second hand bike industry.

5.4 RESEARCH DESIGN

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.

To know the Yamaha reputation and sales promotion in motorcycle market, census

method was chosen and all the dealership were individually visited in the area of

Lakhimpur, Mosaram Auto Sales(Hero Honda), I did a market survey by taking open

interviews to the dealers and brokers of the market.

5.5 SAMPLE DESIGN

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 The sample was judgmental and methodology was non

probability sampling

Size of Sample 100

Sampling technique Judgmental (Non Probabilistic

Sampling)

Location from which samples were taken Lakhimpur

5.6 SCOPE OF THE STUDY

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.


5.7 LIMITATIONS OF THE STUDY

This research is geographically restricted to Lakhimpur only. Hence the result

cannot be extrapolated to other places.

The study is restricted only to the organized sector of two wheeler industry

The seriousness of the respondents and their ability to justify their answers may

also be a limitation.

The sample size is small due to the specified reasons.

Findings are based on sample survey.

All interview questions are undisguised or direct. Hence there is a scope for the

respondents to be biased or pretentious.


Chapter 6.0

Data


6.0 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

The Secondary Data collection involved internet search, browsing magazines,

newspapers and articles and papers related to the two wheeler industry in India.

Numerous Journals and books related to the topic were also browsed to understand the

dynamics of the industry.


Chapter 7.0

FINDINGS AND ANALYSIS

7.1 RESULTS OF CUSTOMER SURVEY

7.2 HYPOTHESES TESTS


7.1 RESULTS OF THE CUSTOMER SURVEY

7.1.1: The Age distribution in the sample.

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.


7.1.2: The Marital status distribution in the sample.

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.


7.1.3: The Occupation distribution in the sample.

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.


7.1.4: The Income groups distribution in the sample.

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.


7.1.5: The Way of purchasing distribution in the sample.

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.


7.1.6: The Financing distribution in the sample.

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.


7.1.7: Compared brands with FZS.

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.


7.1.8: The choice of Feature which is most important in a bike.

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.


7.1.9: 1st Information sources and their shares

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.


7.1.10: Customer Perception regarding Yamaha Image after FZS

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.


7.1.11: Comments for FZS by Potential Customers.

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.


7.2 HYPOTHESES TESTS

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

Frequency Percent Valid Percent

Cumulative

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

MAKER

6 6.0 6.0 75.0

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


OBSERVATION

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.


HYPOTHESIS II

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

Frequency Percent Valid Percent

Cumulative

Percent

Valid YES 98 98.0 98.0 98.0

NO 2 2.0 2.0 100.0

Total 100 100.0 100.0


OBSERVATION

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


H1= There is no significant relationship between income group and the choice of features


Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

MONTHLY

HOUSEHOLD INCOME

* PURCHASING

REASONS

100 100.0% 0 .0% 100 100.0%


MONTHLY HOUSEHOLD INCOME * PURCHASING REASONS Cross

tabulation

PURCHASING REASONS

ST

YLE

/

DE

SIG

N

CO

NT

RO

LLA

BIL

ITY

PIC

K U

P

RE

PU

TA

TIO

N

O

F

MA

KE

R

RID

ING

CO

MF

OR

T

N

EW

TE

CH

NO

LOG

Y

DU

RA

BIL

ITY

O

TH

ER

S

MIL

EA

GE

TO

TA

L

UP

TO

10

000

Count 8 1 2 2 4 0 0 0 0 17

% within

MONTHL

Y

HOUSEH

OLD

INCOME

47.1

%

5.9% 11.8

%

11.8% 23.5

%

.0% .0% .0% .0% 100.

0%

% within

PURCHA

SING

REASON

S

14.8

%

14.3

%

25.0

%

33.3% 33.3

%

.0% .0% .0% .0% 17.0

%

% of Total 8.0% 1.0% 2.0% 2.0% 4.0% .0% .0% .0% .0% 17.0

%

1000

1-

2000

0

Count 18 2 3 0 2 4 1 1 2 33

% within

MONTHL

Y

HOUSEH

OLD

INCOME

54.5

%

6.1% 9.1% .0% 6.1% 12.1

%

3.0% 3.0% 6.1% 100.

0%

% within

PURCHA

SING

REASON

S

33.3

%

28.6

%

37.5

%

.0% 16.7

%

50.0

%

100.

0%

50.0

%

100.

0%

33.0

%


% of Total 18.0

%

2.0% 3.0% .0% 2.0% 4.0% 1.0% 1.0% 2.0% 33.0

%

2000

1-

4000

0

Count 24 4 3 2 5 1 0 1 0 40

% within

MONTHL

Y

HOUSEH

OLD

INCOME

60.0

%

10.0

%

7.5% 5.0% 12.5

%

2.5% .0% 2.5% .0% 100.

0%

% within

PURCHA

SING

REASON

S

44.4

%

57.1

%

37.5

%

33.3% 41.7

%

12.5

%

.0% 50.0

%

.0% 40.0

%

% of Total 24.0

%

4.0% 3.0% 2.0% 5.0% 1.0% .0% 1.0% .0% 40.0

%

4000

1-

6000

0

Count 3 0 0 2 1 3 0 0 0 9

% within

MONTHL

Y

HOUSEH

OLD

INCOME

33.3

%

.0% .0% 22.2% 11.1

%

33.3

%

.0% .0% .0% 100.

0%

% within

PURCHA

SING

REASON

S

5.6% .0% .0% 33.3% 8.3% 37.5

%

.0% .0% .0% 9.0

%

% of Total 3.0% .0% .0% 2.0% 1.0% 3.0% .0% .0% .0% 9.0

%

6000 Count 1 0 0 0 0 0 0 0 0 1


1-

8000

0

% within

MONTHL

Y

HOUSEH

OLD

INCOME

100.0

%

.0% .0% .0% .0% .0% .0% .0% .0% 100.

0%

% within

PURCHA

SING

REASON

S

1.9% .0% .0% .0% .0% .0% .0% .0% .0% 1.0

%

% of Total 1.0% .0% .0% .0% .0% .0% .0% .0% .0% 1.0

%

Total Count 54 7 8 6 12 8 1 2 2 100

% within

MONTHL

Y

HOUSEH

OLD

INCOME

54.0

%

7.0% 8.0% 6.0% 12.0

%

8.0% 1.0% 2.0% 2.0

%

100.0

%

% within

PURCHA

SING

REASON

S

100.0

%

100.

0%

100.

0%

100.0% 100.

0%

100.

0%

100.

0%

100.

0%

100.

0%

100.0

%

% of Total 54.0

%

7.0% 8.0% 6.0% 12.0

%

8.0% 1.0% 2.0% 2.0

%

100.0

%


Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)

Pearson Chi-Square 31.685a 32 .482

Likelihood Ratio 33.007 32 .418

Linear-by-Linear

Association

.006 1 .936

N of Valid Cases 100

a. 42 cells (93.3%) have expected count less than 5. The

minimum expected count is .01.

Symmetric Measures

Value

Asymp. Std.

Errora Approx. Tb Approx. Sig.

Interval by

Interval

Pearson's R -.008 .092 -.080 .936c

Ordinal by

Ordinal

Spearman

Correlation

-.016 .100 -.154 .878c


a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.


OBSERVATION: 1: 60% of the people in the 20001-40000 income group opt for style

and 54.5% in 10000-20000.

OBSERVATION: 2: Style/Design & riding comfort are the two most significant factors for

people.

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.

HYPOTHESIS IV

H0 = There is a significant relationship between income group and the 1st information



H1= There is no significant relationship between income group and the 1st information



Cases

Valid Missing Total


MONTHLY

HOUSEHOLD INCOME

* SOURCE OF

AWARENESS

100 100.0% 0 .0% 100 100.0%

MONTHLY HOUSEHOLD INCOME * SOURCE OF AWARENESS Cross tabulation

SOURCE OF AWARENESS Total

TV

CF

FA

MIL

Y/

FR

IEN

DS

RO

AD

SH

O

W/

TE

ST

RID

E

SH

OW

RO

O

M

MA

GA

ZIN

E

NE

WS

PA

PE

R

WE

BS

ITE

/

BLO

GS

AU

TO

EX

PO

OT

HE

RS

UPT Count 5 4 1 3 3 0 1 0 0 17


MO

NT

HL

Y H

OU

SE

HO

LD IN

CO

ME

O

100

00

% within

MONTHL

Y

HOUSE

HOLD

INCOME

29.4

%

23.5

%

5.9% 17.6

%

17.6% .0% 5.9% .0% .0% 100.0

%

% within

SOURC

E OF

AWARE

NESS

11.1

%

16.7

%

20.0% 25.0

%

60.0% .0% 33.3% .0% .0% 17.0%

% of

Total

5.0

%

4.0% 1.0% 3.0

%

3.0% .0% 1.0% .0% .0% 17.0%

100

01-

200

00

Count 16 8 1 3 1 2 1 1 0 33

% within

MONTHL

Y

HOUSE

HOLD

INCOME

48.5

%

24.2

%

3.0% 9.1

%

3.0% 6.1% 3.0% 3.0% .0% 100.0

%

% within

SOURC

E OF

AWARE

NESS

35.6

%

33.3

%

20.0% 25.0

%

20.0% 50.0% 33.3% 100.0

%

.0% 33.0%

% of

Total

16.0

%

8.0% 1.0% 3.0

%

1.0% 2.0% 1.0% 1.0% .0% 33.0%

200

01-

400

00

Count 20 11 3 4 1 0 0 0 1 40

% within

MONTHL

Y

HOUSE

HOLD

INCOME

50.0

%

27.5

%

7.5% 10.0

%

2.5% .0% .0% .0% 2.5% 100.0

%


% within

SOURC

E OF

AWARE

NESS

44.4

%

45.8

%

60.0% 33.3

%

20.0% .0% .0% .0% 100.

0%

40.0%

% of

Total

20.0

%

11.0

%

3.0% 4.0

%

1.0% .0% .0% .0% 1.0% 40.0%

400

01-

600

00

Count 3 1 0 2 0 2 1 0 0 9

% within

MONTHL

Y

HOUSE

HOLD

INCOME

33.3

%

11.1

%

.0% 22.2

%

.0% 22.2% 11.1% .0% .0% 100.0

%

% within

SOURC

E OF

AWARE

NESS

6.7

%

4.2% .0% 16.7

%

.0% 50.0% 33.3% .0% .0% 9.0%

% of

Total

3.0

%

1.0% .0% 2.0

%

.0% 2.0% 1.0% .0% .0% 9.0%

600

01-

800

00

Count 1 0 0 0 0 0 0 0 0 1

% within

MONTHL

Y

HOUSE

HOLD

INCOME

100.

0%

.0% .0% .0% .0% .0% .0% .0% .0% 100.0

%

% within

SOURC

E OF

AWARE

NESS

2.2

%

.0% .0% .0% .0% .0% .0% .0% .0% 1.0%

% of

Total

1.0

%

.0% .0% .0% .0% .0% .0% .0% .0% 1.0%

Total Count 45 24 5 12 5 4 3 1 1 100

% within

MONTHL

45.0

%

24.0

%

5.0% 12.0

%

5.0% 4.0% 3.0% 1.0% 1.0% 100.0

%


Y

HOUSE

HOLD

INCOME

% within

SOURC

E OF

AWARE

NESS

100.

0%

100.0

%

100.0% 100.

0%

100.0

%

100.0

%

100.0

%

100.0

%

100.

0%

100.0

%

% of

Total

45.0

%

24.0

%

5.0% 12.0

%

5.0% 4.0% 3.0% 1.0% 1.0% 100.0

%

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)



Linear-by-Linear

Association

.274 1 .601





OBSERVATION: 1: The 10001-20000 & 20001-40000 income group mainly uses

advertisements as their primary information source. 50% in both groups are relying on

the Advertisement as a source of awareness for any new launch or any other information

regarding two wheelers.

OBSERVATION: 2: Advertisements and Friends together constitute 69% of the total.

OBSERVATION: 3: We can see that through newspaper and magazine we are not

passing our product details to the customers easily, reason behind this can be that we

are not positioning our AD’s in the right area. So once again we should do the Targeting

Positioning and segmenting our customers for our product advertisement in newspaper.




HYPOTHESIS V

H0 = There is a significant relationship between age group and the choice of features


H1= There is no significant relationship between age group and the choice of features



Cases

Valid Missing Total


PURCHASING

REASONS * AGE

100 100.0% 0 .0% 100 100.0%

PURCHASING REASONS * AGE Cross tabulation

AGE

Total16-20 21-25 26-30

Above

30

PU

RC

HA

SIN

G R

EA

SO

NS

STYLE/DESIGN Count 17 20 13 4 54

% within PURCHASING

REASONS

31.5% 37.0% 24.1% 7.4% 100.0%

% within AGE 60.7% 48.8% 65.0% 36.4% 54.0%

% of Total 17.0% 20.0% 13.0% 4.0% 54.0%

CONTROLLABILI

TY

Count 3 3 0 1 7

% within PURCHASING

REASONS

42.9% 42.9% .0% 14.3% 100.0%

% within AGE 10.7% 7.3% .0% 9.1% 7.0%

% of Total 3.0% 3.0% .0% 1.0% 7.0%


PICK UP Count 2 4 1 1 8

% within PURCHASING

REASONS

25.0% 50.0% 12.5% 12.5% 100.0%

% within AGE 7.1% 9.8% 5.0% 9.1% 8.0%

% of Total 2.0% 4.0% 1.0% 1.0% 8.0%

REPUTATION OF

MAKER

Count 0 4 0 2 6

% within PURCHASING

REASONS

.0% 66.7% .0% 33.3% 100.0%

% within AGE .0% 9.8% .0% 18.2% 6.0%

% of Total .0% 4.0% .0% 2.0% 6.0%

RIDING

COMFORT

Count 3 5 2 2 12

% within PURCHASING

REASONS

25.0% 41.7% 16.7% 16.7% 100.0%

% within AGE 10.7% 12.2% 10.0% 18.2% 12.0%

% of Total 3.0% 5.0% 2.0% 2.0% 12.0%

NEW

TECHNOLOGY

Count 1 4 3 0 8

% within PURCHASING

REASONS

12.5% 50.0% 37.5% .0% 100.0%

% within AGE 3.6% 9.8% 15.0% .0% 8.0%

% of Total 1.0% 4.0% 3.0% .0% 8.0%

DURABILITY Count 1 0 0 0 1

% within PURCHASING

REASONS

100.0

%

.0% .0% .0% 100.0%

% within AGE 3.6% .0% .0% .0% 1.0%

% of Total 1.0% .0% .0% .0% 1.0%

OTHERS Count 0 1 0 1 2

% within PURCHASING

REASONS

.0% 50.0% .0% 50.0% 100.0%

% within AGE .0% 2.4% .0% 9.1% 2.0%


% of Total .0% 1.0% .0% 1.0% 2.0%

MILEAGE Count 1 0 1 0 2

% within PURCHASING

REASONS

50.0% .0% 50.0% .0% 100.0%

% within AGE 3.6% .0% 5.0% .0% 2.0%

% of Total 1.0% .0% 1.0% .0% 2.0%

Total Count 28 41 20 11 100

% within PURCHASING

REASONS

28.0% 41.0% 20.0% 11.0% 100.0%

% within AGE 100.0

%

100.0% 100.0% 100.0

%

100.0%

% of Total 28.0% 41.0% 20.0% 11.0% 100.0%

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)



Linear-by-Linear

Association

.917 1 .338





Symmetric Measures

Value

Asymp. Std.

Errora Approx. Tb Approx. Sig.

Interval by

Interval

Pearson's R .096 .102 .957 .341c

Ordinal by

Ordinal

Spearman

Correlation

.084 .100 .838 .404c


a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.


OBSERVATION: 1: Around 61% of people in the 21-25 years age group and 75% of 26-

30 years age group opt for style, design and riding comfort. So we can say there is no

combination with age and choice of feature of bike.

OBSERVATION: 2: Only 2% people are demanding for Mileage so by this somewhere

this result is also proving our null hypothesis of first hypothesis true that Yamaha has

changed the perception of customers now a days.



HYPOTHESIS VI

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.

SOURCE OF AWARENESS * AGE Cross tabulation

AGE

Total16-20 21-25 26-30

Above

30

SO

UR

CE

OF

AW

AR

EN

ES

S

TVCF Count 10 16 14 5 45

% within

SOURCE OF

AWARENESS

22.2% 35.6% 31.1% 11.1% 100.0

%

% within AGE 35.7% 39.0% 70.0% 45.5% 45.0%

% of Total 10.0% 16.0% 14.0% 5.0% 45.0%

FAMILY/FRIENDS Count 7 8 4 5 24

% within

SOURCE OF

AWARENESS

29.2% 33.3% 16.7% 20.8% 100.0

%

% within AGE 25.0% 19.5% 20.0% 45.5% 24.0%

% of Total 7.0% 8.0% 4.0% 5.0% 24.0%


ROADSHOW/

TESTRIDE

Count 1 4 0 0 5

% within

SOURCE OF

AWARENESS

20.0% 80.0% .0% .0% 100.0

%

% within AGE 3.6% 9.8% .0% .0% 5.0%

% of Total 1.0% 4.0% .0% .0% 5.0%

SHOWROOM Count 1 8 2 1 12

% within

SOURCE OF

AWARENESS

8.3% 66.7% 16.7% 8.3% 100.0

%

% within AGE 3.6% 19.5% 10.0% 9.1% 12.0%

% of Total 1.0% 8.0% 2.0% 1.0% 12.0%

MAGAZINE Count 4 1 0 0 5

% within

SOURCE OF

AWARENESS

80.0% 20.0% .0% .0% 100.0

%

% within AGE 14.3% 2.4% .0% .0% 5.0%

% of Total 4.0% 1.0% .0% .0% 5.0%

NEWSPAPER Count 3 1 0 0 4

% within

SOURCE OF

AWARENESS

75.0% 25.0% .0% .0% 100.0

%

% within AGE 10.7% 2.4% .0% .0% 4.0%

% of Total 3.0% 1.0% .0% .0% 4.0%

WEBSITE/BLOGS Count 2 1 0 0 3

% within

SOURCE OF

AWARENESS

66.7% 33.3% .0% .0% 100.0

%

% within AGE 7.1% 2.4% .0% .0% 3.0%

% of Total 2.0% 1.0% .0% .0% 3.0%

AUTOEXPO Count 0 1 0 0 1


% within

SOURCE OF

AWARENESS

.0% 100.0% .0% .0% 100.0

%

% within AGE .0% 2.4% .0% .0% 1.0%

% of Total .0% 1.0% .0% .0% 1.0%

OTHERS Count 0 1 0 0 1

% within

SOURCE OF

AWARENESS

.0% 100.0% .0% .0% 100.0

%

% within AGE .0% 2.4% .0% .0% 1.0%

% of Total .0% 1.0% .0% .0% 1.0%

Total Count 28 41 20 11 100

% within

SOURCE OF

AWARENESS

28.0% 41.0% 20.0% 11.0% 100.0

%

% within AGE 100.0% 100.0% 100.0% 100.0% 100.0

%

% of Total 28.0% 41.0% 20.0% 11.0% 100.0

%

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)



Linear-by-Linear

Association

7.581 1 .006





OBSERVATION: 1: Around 60% of people in the 16-20 years age group and 55% in 21-25 age groups have TVCF and friends as their primary information source.

OBSERVATION: 2: TVCF & Family/friends are the major source of info in every group.


hence there is no significant relationship between the variables, hence H0 is rejected


To make my analysis easier I divided the bikes in 4 different segments

1. PREMIUM SEGMENT

2. DELUXE SEGMENT

3. EXECUTIVE SEGMENT

4. ENTRY SEGMENT

Here we are doing the analysis of every segment one by one.

1. PREMIUM SEGMENT

Company Model

Ex-

showroom

price

% resale

value ‘0920

09

2008 2007

Yamaha R15 97,425 82.11 80,00

0

75,000 _____

HHML CBZ 57,450 69.62 40,00

0

34,000 27,000

HHML Karizma 72,800 68.68 50,00

0

45,000 40,000

Bajaj Pulsar

220

81,567 _____ _____

__

______

_

_____


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

Company Model Ex- price % resale

value

2009 2008 2007

Yamaha FZ - S 67,000 N.A N.A N.A

Yamaha FZ 16 65,000 93.84 61,000 57,000

Bajaj Pulsar 180 63,653 86.40 55000 46,000 40,000

HHML Hunk 56,175 87.22 49,000 46,000

Bajaj Pulsar 150 60,143 88.12 53000 38k-44k 30,000

TVS Apache RTR 60,825 88.77 54000 40,000 36,000

Honda unicorn 55,954 71.48 40,000 29,000 25,000

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.

Yamaha is leading in deluxe segment.

Models FZ were available low in number.

HHML Hunk is also preferable in this segment.

HMSI Unicorn is less preferred by costumer as well as Broker

3. EXECUTIVE SEGMENT

Company Model Ex-

price

%

resale

value

2009 2008 2007

Yamaha Glad ss 52,10

0

71.51 38,00

0

30,00

0

26,000

Yamaha Glad rs 52,60

0

72.24 38,00

0

30,00

0

26,000

HHMl Super

splendo

r

44,45

0

94.48 42,00

0

38,00

0

TVS Flame 48,55

0

86.50 42,00

0

34,00

0

Bajaj Discove

r 135

50,14

5

40,00

0

35,000

4 .ENTRY SEGMENT


Company Model Ex Price %resale

value

2009 2008 2007

Bajaj Platina

100

35,196 78.13 27,500 25,000 22,000

TVS Star 39,060 64.00 25,000 22,000 20,000

Yamaha Alba 43,890 63.79 28,000 23,000 18,000

HHML Splendor

+

38,250 83.66 32,000 26,000 22,000

HHML Passion 41,750 83.83 35,000 28,000 24,000

Hero Honda is leading in entry and executive segment

Reasons

- Reliability perception of the customer

- Brand Image and loyalty

- Focus of company on these segments

In this segment Hero Honda is leader because they have established themselves as a

very good established brand, customers and they are loyal to each other, company is

very much target oriented in this segment.


CHAPTER 8.0

RECOMMENDATION

8.0 RECOMMENDATIONS


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

were extremely attentive in this regard and perform maximum follow up on

prospective customers.

MEASURES SHOULD BE TAKEN TO IMPROVE ITS DEALERSHIP : Yamaha

which is trying to build a brand new image of a high tech and stylish brand of sports

bikes should take appropriate steps to show it in their showrooms. Showrooms like

Oswal Yamaha, and Shiva Yamaha were very small in size and do not reflect the

quality and scale of Yamaha in the market. Shiva motors was very dirty ambience

and customer will feel that company is not working good that’s why they are not

taking any actions toward their showrooms and this will definitely hamper the sales,

so Yamaha should take care of these things.

POOR PROMOTIONAL CAMPAGIN : The Yamaha ads seen on electronic and print

media are absolutely out of touch with the Indian culture and thought process. If we

see that Bajaj and Hero Honda has produced a very good link with the Indian family

and customers can easily recall their Ads by well know punch lines like HAMARA

BAJAJ or HERO HONDA DESH KI DHADKAN-DHAK DHAK. Yamaha is also

focusing on this as we can see the AD of YAMAHA ALBA. An Indian consumer

irrespective of their income level has a soft corner for traditions and culture of India.

Hence, all companies including market leaders like Hero Honda and Bajaj capitalize

on this behavior of customers and design their ad campaigns keeping India in mind.

YOUTH ORIENTED PROMOTION: Yamaha claims that they target the customers of

age group 18-25 but their ad never represents this so they should make such kind of

AD where youth should taken in as centre of attraction. They should do this earliest


to capture the market because vast majority of people depending on ads and friends

as their chief sources of information about the products.

AGGRESSIVE SELLING : The Company should follow an aggressive selling

concept. A non-aggressive selling concept which is clearly visible in its advertising

campaign which does not hit on the customer rather aims to provide information in a

subtle manner. These days they have hit on the right target as we can prove through

our survey that people who purchased YAMAHA FZS, 54% people have seen the

TVCF of Yamaha before purchasing the bike. Emotional advertising which is the

norm in India and which is very successful is not followed.

INDIAN BRAND AMBASSADOR : The Company’s brand ambassador is

VALENTINO ROSSY earlier we had JOHN ABRAHAM too but now YAMAHA does

not have any Indian brand ambassador as compared to its competitors like Hero

Honda who have Hrithik Roshan doing their ads and M.S. Dhoni doing the job for

TVS. It is necessary for Yamaha to have a brand ambassador from India to connect

with the Indian customer.

VARIETY IS NEEDED TO BE PROVIDED: Yamaha at the moment has a very weak

product portfolio and its products are not that visible in the market or displays in

dealerships except the Gladiator and now R15. The lack of product range visibility in

dealerships and in the media and advertisements is adversely affecting the brand of

Yamaha. If a customer want to switch from one bike to another Yamaha is not

providing them options so here Yamaha should work to maintain their loyal

customers. Yamaha should maintain and produce the bikes in quarterly or half yearly

so that customers can avail options.

BRAND EXPOSURE SHOULD BE INCREASED OR TO TAP THE NICHES : There

is a large market of unsatisfied customers in India. This effort would be in the

direction to capture the unsatisfied customers and who are willing to change their

brands on bike replacement.

FOCUSSED ADVERTISEMENT ON PRODUCT USP: The maximum demand

among customers constituting the target market of India Yamaha Motors is for the


power and style features of bikes. Hence, the company should produce products

keeping the above factors in mind.


LIMITATIONS OF THIS SURVEY

1. Specific to Lakhimpur and Unnao

2. Prices may vary depending upon Bike condition.

3. Bike available in stock was pushed by the brokers/dealers


CHAPTER 9.0

BIBLIOGRAPHY

& REFERENCES


9.1 BIBLIOGRAPHY

1) Phillip Kotler; Principles of marketing, 7th Edition; Pearson Publication.

2) Saxena and Rajan; Marketing Management; Tata McGraw Hill; 3rd Edition

3) Ramaswami, V.S. and Namakumari, S.; Marketing Management; Macmillan India;

2002.

4) Batra Satish & Kazmi SHH ; Consumer behaviour text & cases; 1999.

5) Gupta, S.P. and Gupta, M.P.; Business Statistics; 14th Edition; Sultan Chand

Publications.

6) Robert W and Boockholdt, James L.; Factors Leading To change in consumer

behavior: A Study of Managers Perspectives; Creativity Research Journal, 11(4), Page

No. 245-307; 1998.


9.2 REFERENCES

1. The Yamaha India website;

www.yamaha-motor-india.com

2. Overview of performance of the Indian Automobile Industry

http://www.siamindia.com/scripts/IndustryStatistics.aspx

3. Overview of economy of automobile industry website seen on 26th June

http://www.iloveindia.com/economy-of-india/automobile-industry.html

4. Overview On BAJAJ AUTO, website seen on 6th July


5. Overview On HERO HONDA, website seen on 6th July

http://auto.indiamart.com/hero-honda/

6. Overview On HONDA, website seen on 6th July

http://auto.indiamart.com/two-wheelers/hmsil.html

7. Overview On TVS SUZUKI, website seen on 6th July

http://auto.indiamart.com/tvs-suzuki/

8. Overview On ROYAL ENFIELD, website seen on 6th July

http://auto.indiamart.com/motorcycles/thunderbird

9. Overview of Recent Launches of different brands, website seen on 7 July

http://auto.indiamart.com/motorcycles/bajaj-pulsar-dts-fi220/http://auto.indiamart.com/motorcycles/yamaha-fzs/http://auto.indiamart.com/motorcycles/honda-cbf-stunner-fi/index.htmlhttp://auto.indiamart.com/motorcycles/suzuki-hayabusa-1300/http://auto.indiamart.com/motorcycles/suzuki-gs-150r/

10. Upcoming bikes in India, seen on 6th July

http://www.indiamarks.com/guide/Upcoming-Bikes-in-India-in-2009/10179


http://www.indiamarks.com/guide/Upcoming-Bikes-in-India-in-2009/10179

11. Overview of Total Turnover, seen on 6th July

http://www.siamindia.com/scripts/gross-turnover.aspx

12. Overview of Domestic market share, seen on 6th Julyhttp://www.siamindia.com/scripts/market-share.aspx

13. Overview of Production Trend of automobile industryhttp://www.siamindia.com/scripts/production-trend.aspx


CHAPTER 10.0

ANNEXURES

10.1 QUESTIONNAIRE


10.1 SAMPLE QUESTIONNAIRE

QUESTIONNAIRE(For FZ customers)

Contact- Place: Model: cc: Date of purchase:

1. Name: 2. Age:

3. Marital status: a) married b) single

4. What is your occupation? a) Student b) Office employee c) Factory employee d) Shop owner e) Business Person f) Other: ________

5. Monthly household income: a) Up to Rs.10,000 b) Rs.10,001-20,000 c) Rs.20,001-40,000 d) Rs.40,001-60,000 e) Rs.60, 001-80,000 f) Rs.80, 001-100,000 g) Above Rs. 100,000

6. How did you buy the MC? a) Cash b) Loan [D/P: ]

7. Who paid for your MC? a) Self b) Family c) Others:

8. Did you considered other motorcycle while buying this model? a) Yes b) No

9. Which model did you compare with? Model: cc:

10. Have you seen FZ 16 TVCF? a) Yes b) No

11. Have you seen FZ 16 newspaper advertisement? a) Yes b) No

12. Have you seen FZ 16 magazine advertisement? a) Yes b) No

13. Do you take information from internet blogs? a) Yes b) No Which blog?


14. What was the reason you finally purchased your Bike? 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: _______

15. Please specify your source of awareness for your Bike? a) TVCF b) Newspaper c) Magazine d) Showroom e) Family/Friends f) Mall display g) Road show/Test ride h) Website/Blogs i) Radio j) Hoardings k) Auto expo l) TV news m) Others_______

16. Do you think Yamaha has improved after FZS and R15? a) Yes b) No

17. How does your friend say to your Motor Cycle? a) Trendy b) Macho c) Stylish d) Low Mileage e) After sales service f) Poor Resale value g) Expensive spare parts h) Others______


CASE STUDY

ON

YAMAHA


Issues

From this case study following points can be studied :

Motorcycle industry in India (various players operating in it).

Various Problems faced by a Multinational organization while operating in an other country.

How in an organization Japanese culture was successfully implemented in place of Indian culture after the failure of a joint venture.

Various strategic moves adopted by an organization to breakthrough the

competition or to consolidate its position in to Indian market


Overview of the automobile industry – the bike segment(Reasons behind the Growth of Motorcycle industry in India) Bikes or two wheelers in India cater to various needs of the consumers. With the choice of the Indians improving from bicycles to two wheelers, the Indian two-wheeler market has seen a significant growth over the years. Now owing a bike has become a must for most Indians. Even if people own a car they prefer to have a bike as it is very economical and fuel efficient. With the growth in the economy the demand for two wheelers is increasing over the years. It is one of the most dynamic industries today and with the increasing competition companies are bringing in new products with sophisticated technologies and innovative features to capture a major pie of the Indian market and it’s the consumer who is benefited from it..With the availability of reduced consumer loans and high disposable income the Indian two-wheeler industry has perceived an exceptional growth over the past few years thereby making India the second largest market for two wheelers in the world only after China. The motorcycle has now become one most popular mode of transportation among the Indian middle class families because of it is cost effective, economical and easy to navigate through the traffic. Moreover, the people have started preferring bikes instead of scooters and mopeds and today bikes form a major part of the Indiantwo wheelers.Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike manufacturer in the world, Hero Honda is in close competition with the Indian manufacturer Bajaj India. The motorcycle industry in India has witnessed a tremendous change in the 90’s with the invention of 4 stroke engine which makes the bikes more fuel efficient. Further companies are trying to bring in more innovations to make the motorcycle ride more comfortable, safe and user friendly and economical.In a nut shell the followings factors can be distinguished for the growth of motorcycle industry in India:

Easy accessibility to cheap consumer loans The increase in the average income of the family. The reduction in duties and taxes. Convenience with regards to commuting as compared to the public transport

system. Continuous innovations in technology making the bikes economic and fuel-

efficient. The first choice among youths and teenagers.


An Overview of Industry There are many popular and renowned motorcycles in India. The most popular among them are Hero Honda and Royal Enfield. Bajaj Auto Ltd. is one of them.Bajaj Auto Limited, manufacturing a range of motorcycles and scooters, was founded in 1945 on 29th November. With the onset in the Indian market, the company was only manufacturing two wheelers and later it also made a benchmark in the three wheeler industry. This popular company became a public limited company in 1960.Hero Honda Motors Ltd. is another popular motorcycle company in India. This company, started in 1984, was a successful joint venture between Hero Cycles and Honda Motor Company of Japan. Since the commencement of the company, Hero Honda has manufactured and sold more than 15 million motorcycles. The company has established a niche in the competitive Indian and international market for manufacturing low maintenance and high fuel efficient motorcycles. When it comes to Indian motorcycle, Royal Enfield hits the mind of every Indian motorcycle lovers because it isone of the premier bike companies in India..TVS Motor Company Ltd and Yamaha Motor India Ltd also have carved a niche in the Indian motorcycle market.TVS Motor Company, established by T. V. Sundaram Iyengar in 1911, is believed to be the third largestmanufacturer of two-wheeler in India.TVS came up with the first two-seater moped in 1980 that eventually defined the dominion of personal transportation in India. This company entered into a joint venture with Suzuki Motor Corporation of Japan in 1982. This collaboration was the first company to introduce a 100-cc motorcycle in the markets of India.Yamaha Motor India Ltd. is continuously making efforts to break down the competitive two wheeler market in India and win the battle with its business strategies. The business strategies and principles of this company is customer fulfillment through quality service, research and development for introducing high end motorcycles and optimization of the working system

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.


Market Segmentation

The market for two wheeler can be segmented into following categories

1. Entry Segment ( Entry Level Area) ( UP To RS 35000)

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

2. Executive category (35000 -45000)

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 .

3. Delux Segment (45000 – 70000)

Pulsar basically defined this category


Entry segment level

Executive segment

Deluxe segment

Premium segment

This category is basically characterized by: Youngsters , having passion for bike , College goers , Style is needed (Macho look) ,Basically known as girlfriend bikes For ex – Bikes catering to this segment are Yamaha FZS, Pulsar, CBZ xtreme, TVS Apache, Honda Unicorn , GS150.

4 . Premium Segment ( Above 70000)

For people with passion “I WANT A BIKE’’Like IT people in the city like BANGALOREBikes catering to this segment basically includes Yamaha R15 , Karizma, Pulsar 220 cc , Apache RTR .In this segment best seller is Apache

SWOT ANALYSIS of THE TWO WHEELER INDUSTRY StrengthEstablished brands, Strong Brand NameFuel efficientStyle statementConvenient in heavy trafficCheap and affordableEasy and cheap finance availabilityPatents Good reputation among customers

WeaknessesExtremely price sensitiveShort PLCHigh R and D costs

OpportunitiesGrowing premium segmentIncreasing dispensable incomeEnvironmental concernsExports increasingVery strong demand in the 100cc. segment dominated by limited players.

ThreatsThe Rs.1 Lakh carCut throat competitionIncreasing number of players in the marketRising raw material costsIncreasing rates of interest on finance

COMPETITORS ANALYSIS (Players Operating in The Market) BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

1. Bajaj Auto Ltd.

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).

2. Hero Honda Motors Ltd.

Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Group and Japanese Honda Motors Company in the year 1983. This joint venture has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. Hero Honda is globally known of being the most fuel-efficient and the largest CBZ selling Indian Motorcycle Company. This is a relationship so harmonious that Hero Honda has managed to achieve indigenisation of over 95 percent, a Honda record worldwide.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. 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.

3. Honda Motorcycles & Scooters India Private Limited

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.

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 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.

5. Royal Enfield Motors Ltd.

Established in 1955, Royal Enfield was the brand of the Enfield Cycle Company. Royal Enfield is one the oldest bike on the road. The company is well known for producing motorcycles, but they also produce bicycle, stationary engines, lawnmowers and rifle small parts for the Royal Small Arms Factory in Enfield. 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.

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.


SWOT ANALYSIS

GROUP PLAYERS ATTRIBUTES COMPETITIVE FORCESA Bajaj, Hero Honda Highly diversified

Aggressive promotion

- High buyer power- High competitive rivalry - High entry barriers

B TVS Selectively diversifiedAggressive Promotion

- Low entry barriers- Narrow product lines imply that aggressive promotions can eat into market share

C Honda, Yamaha Selectively diversifiedModerate Promotion

- High threat of substitution (Rs 1 lakh car)- Low entry barriers

D Royal Enfield Highly specializedLow Promotion

- Low buyer power – high brand loyalty- Product diversification will imply risk of brand dilution

YAMAHA (AN INTRODUCTION) 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.India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabad in Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domestic and export markets. With a strong workforce of 2000 employees, India Yamaha Motor is highly customer-driven and has a countrywide network of over 400 dealers.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).

VISIONTo establish YAMAHA as the "exclusive & trusted brand" of customers by "creating Kando" (touching their hearts) - the first time and every time with world class products & services delivered by people having "passion for customers".

MISSIONWe are committed to: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 COMPETENCIESCustomer #1We put customers first in everything we do. We take decisions keeping the customer in mind.Challenging SpiritWe 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-workWe 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 OrganizationWe 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

FOUNDED: July 1, 1955

CAPITAL: 48,302 million yen (as of March 31, 2008)

PRESIDENT: Takashi Kajikawa

EMPLOYEES: 46,850 (as of December 31, 2007)

PARENT: 9,019 (as of December 31, 2007)

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)


Sales (%) by region (consolidated)

SWOT ANALYSIS FOR INDIA YAMAHA MOTORS

Strength Size and scale of parent company. Effective Advertising Capability Committed and dedicated staff. High emphasis on R and D. Experience in the market. Established brand. Established market channel. Power, Speed & Acceleration

Weaknesses Small showrooms. Not much emphasis on aggressive selling. Weak product diversity.

Opportunities Growing premium segment. Global expansion into the Caribbean

& Central America. Expansion of target market (include

women). Increasing dispensable income. 1st mover advantage.

Threats Cut throat competition Increasing number of players in the market Rising raw material costs Increasing rates of interest on finance

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... From 1995 to early 2000, EYML took several steps to become the number one player in India's two-wheeler market. However, in mid 2000, Escorts divested 24% equity to Yamaha Motors and as a result, Yamaha Motors became a majority stakeholder in the


venture (74:26). In May 2001, Escorts sold its remaining 26% equity, thus, exiting from the joint venture.

Role of Escorts Group In the Joint Venture

The role of the Escorts group was always minuscule since Yamaha has been gradually hiking its stake in the joint venture. The Nandas of the Escorts were only promoters in the JV They were just on the drivers seat & Yamaha’s Technology was not the part of their expertise .

Reason For Break up : The macro cause for the change was Escorts Yamaha’s sliding share in the Motorcycle Market. In the light of growing competition, both parties deemed it fit to part ways. Hari prashad Nanda of Escort Group then identified four thrust areas for Escorts-agri-business, telecom, software and healthcare. The idea behind giving Yamaha Motors the majority stake in the joint venture was to focus more on the four thrust areas. As Yamaha’s technology was not their area of specialization. With the change in the equity pattern, Yamaha Motors would control the management of the joint venture. Yamaha Motors would now hold 100% stake in the company. Commenting on Escorts' exit from the joint venture, an official said, "We would like to get out of businesses where we are not in the driver's seat and in the case of Yamaha technology it was not a part of our expertise." He said Escorts would now concentrate on agri-business, telecom and healthcare..

The first ever Press release made by Y.M.I was as follows : “An agreement has recently been reached between Yamaha Motor Co., Ltd. (YMC) and its joint venture partner in India, Escorts Limited (Chairman and Managing Director: Mr. Rajan Nanda. Location: Faridabad, suburbs of New Delhi) under which YMC will acquire all of the 26% of the stock presently held by Escorts Limited in the two companies' motorcycle manufacturing and marketing joint venture, Yamaha Motor Escorts Ltd. (YMEL). The aims of this move to make Yamaha Motor Escorts a 100% YMC subsidiary are to increase the overall speed of managerial and business decisions, to improve product development capabilities and production efficiency, while also strengthening the marketing organization. Plans call for the change in the company's name and other procedures to be completed by the end of June. In addition to YMC acquiring Escorts' 26% of YMEL stock, the company's name will be changed to Yamaha Motor India Private Limited (YMI) and concerted efforts will be made to heighten its competitiveness in the Indian market and promote the spread of the Yamaha brand with target themes of developing products with greater appeal and a distribution network that can respond more quickly to user needs.”

End Of Honey Moon


After the Failure of a Joint Venture The next logical progression for Yamaha was obviously assuming full control of Indian operationsAs a company , YMI is only 7 years old in the Indian Motorcycle market . However Yamaha has had a presence in this sector for over 21 years ever since it entered into a technical collaboration with Escorts motors in 1985 .Ever since the establishment of the first technical assistance agreement between the two companies in 1985, YMC and Escorts Limited have built a cooperative relationship dedicated to the manufacture and sales of Yamaha brand motorcycles in an environment of growing motorcycle demand in the Indian market. In November of 1995, the two companies established the joint venture company Escorts Yamaha Motor Limited, based on a 50-50 capital investment. In June of 2000, that investment ratio was changed to 74% for YMC and 26% for Escorts Limited .

Formation of “Yamaha Motor India Private Limited” (YMI)

After the separation from Escorts Yamaha undertook a lot of measures to consolidate itself in to Indian market YMC assumed managerial control of the company with the name being changed to YMEL and undertook numerous measures to build the company's motorcycle manufacturing and marketing operations.

Various Strategic Measures Undertaken to consolidate in to Indian Market

After Escorts' hugely successful motorcycle brand, Rajdoot, the group had not been able to replicate the success with the offerings under the Yamaha brand. While the Yamaha RX 100 model, which before being withdrawn due to new emission norms, seemed to achieve considerable success, the other models including the Yamaha YBX, its first four-stroke bike, have only received lukewarm response from the market

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.

Introduction of Japanese culture on Indian soil


YAMAHA Motor Company of Japan renamed its wholly-owned Indian subsidiary (Yamaha Motor India Pvt Ltd), after buying out the entire equity holding of the Escorts group in the erstwhile joint venture Yamaha Motor Escorts Ltd.

Following are the main 8 changes which have been implemented after Yamaha Parted its way from Escorts

1. Administrative changes: Each department now has a Japanese representative called Deputy General Manager. As far as hierarchy in the top brass is concerned, the C.E.O, President, Vice President and Associate Vice President are all now Japanese. The first Indian involvement in the top management begins at General Manager Level of individual departments.

2. Eliminating Indian Culture: As long as Escorts had a say in the organization,

atypical Indian Culture prevailed Employees used to work in the office at their own will , used to walking in at 9:15 for a shift which starts at 9:00.But After the separation from Escorts full Japanese culture was implemented in the organization in Place of Indian culture .

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.

5. Life Time Involvement with the Employee : Japanese Companies believe in life time involvement with it’s employees. In return, they expect their employees to treat the organization as their own family


Every employee has to Remember: Switch off A.Cs, fans and lights. Keep the gangway clear of any hindrances. Put yours tools in appropriate closet. Keep your work surroundings clean and hygienic. Call each other by using the word “SAN” which is a word used to give the respect to

each other , each employee of the organization call each other by using the word SAN which means “JI” in Japanese

6. Japanese work on the premise- “ A happy Employee is a productive employee” The standards for employees safety and general sanitation are same in India as in Japan. After Yamaha took over, an entire new department was created, just to look after general

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.

8. Quality Circles: A concept, originally pioneered by the Japanese, was successfully implemented at Yamaha Motors IndiaQuality control, or quality assurance as they like to call it, is something Japanese are obsessed with. Quality assurance became a key performance area only after Yamaha took over. During the era of Escorts when Yamaha was just a technical collaborator, professionals from Japan visited only to collect date regarding rejection rate, efficiency, volumes per hour etc. Now, realizing that profit levels, quality assurance is given it’s due share of importance. So the above 8 points are showing how an organization has to cope up with the changing conditions, as a lot of changes are required when such an event takes place in an organization, and Yamaha is a perfect example in understanding the strategies an organization has to form in order to survive in the odd circumstances.The culture change which came as a shock two years ago has now become a norm. Discipline has become a way of life. The professional approach which Yamaha introduced is no more imposed on the workers. It has become a part of their social conditioning at the workplace.

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.

Various Recent Strategic Moves Adopted By the Organization To Break Through The Competition & To Consolidate in to Indian Market

THE YAMAHA STRATEGY IN INDIA

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 :

1. Focus On Premium Segment of Indian Society.2. Focus on Style & Racing (as It Is aiming at youths

(Between the age of 18 – 24), as these young guns are very conscious of the style quotient and looking forward to their ride being a Personality Statement.

3. To make a trading path of buying the “Sport Bike” rather than a “utility Two Wheeler”.

4. To Become No. 1 in customer Satisfaction and is looking forward to providing the customer with an ‘experience’ with its products.

5. Strong Focus On technical Department.6. To come up with as much as new model as it could so as

to provide customer with a wide variety of choice.7. The business strategies and principles of this company is

customer fulfillment through quality service, research and development for introducing high end motorcycles and optimization of the working system

THE 4 P’S OF INDIA YAMAHA MOTORS


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 .

RECENT LAUNCH


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).

The primary features of Yamaha FZ-S include:

YAMAHA YZF R15

This is the latest offering from the Yamaha stable. The YZF R15 is the first truly sports bike launched in India. The looks and design have been done keeping the bigger R1 in mind and hence the resemblance.The bike is priced at Rs.97,500 (ex-showroom) across India. It boasts of the first liquid cooled 4 valve engine in the two wheeler category which gives it better performance and power. It is a 150cc bike having enough power to bring chills to the rider when he revs up the accelerator.


In addition to the above Launched bikes Yamaha is planning to roll out Following Bikes Too in the near future these are:

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

YAMAHA GLADIATOR 165

Yamaha's 165cc Gladiator will develop around 16.5 PS and complete a 0 – 60 sprints in less than 5 seconds and it believed that Yamaha has already sent the bike for homologation and will launch its mid Next Year. Bike was first displayed in last year’s Auto Expo.



Conclusion

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.


SYNOPSIS

Intern’s Name: Mr. Hemrudra Pratap Singh

Industry Guide: Mr. Mohit Sharma

Faculty Guide: Mr. Bipin Singh

Objective: The objective of our study was to know the market scenario

of Second hand bike industry, to know the customer perception and

satisfaction with after sales services regarding launching of new bikes

FZ & FZS by Yamaha & to determine the factors influencing the

choice of customers regarding bikes.

Findings: We found that product of Yamaha is superb but consumers

are not satisfied with the after sales services and pricing of the product.

There were significant findings in the customer perception &

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.


INDIA YAMAHA MOTORS


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