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 SUBMITTED TO: (2008-2010) SUBMITTED BY: DR.BIMAL AGGARWAL HEMRUDRA PRATAP SINGH (DIRECTOR) MBA- III SEM. ROLL NO. 0825070024

BBS INSTITUTE OF MANAGEMENT STUDIES PLOT NO. 33, KNOWLEDGE PARK-III GREATER NOIDA, UTTAR PRADESH
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TO WHOMESOEVER IT MAY CONCERN

This is to certify that Mr. Hemrudra Pratap Singh, a student of Post Graduate Degree in MBA, BBS Institute of Management Studies, Greater Noida has worked in the MARKETING Ltd. The period for which he was on training was for 8 weeks, starting from 10th JUNE to 10th AUG. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in Marketing. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research. DR.BIMAL AGGARWAL (DIRECTOR) DEPARTMENT, under the able guidance and supervision of MR.JANARDAN SAANA, MARKETING MANAGER in INDIA YAMAHA MOTORS Pvt.

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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 SINGH MBA III Sem.

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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 SINGH MBA III SEM.

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TABLE OF CONTENTS

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Chapter No. 1.0

Topic Industry Profile 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 3.0 4.0 5.0

Critical Review of Literature Hypotheses Executive Summary 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

7.0

Secondary Data Findings & Analysis 6.1 Results of Customer Survey 6.2 Hypotheses Tests

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Chapter 1.0

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

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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

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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. Motorcycle 2. Scooter 3. Mopeds

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Domestic Market Share 2008 – 09 Commercial 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

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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.

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1.2 Comparative Analysis of Domestic Sales of Automobiles 2008-09

1.3 Sales trend of automobiles for the last several years

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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.

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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

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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 twowheeler 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.

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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

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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 visà-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.

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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.

Segment
Three W heeler
3.9% 4.03%

CVs
13.44%

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Pas ve h

`

T he
Others, 5.8% Yamaha, 3.8% TVS Motors, 17.7%
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Honda Motors, 8

H

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

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started offering products in all segments (mopeds & scooterettes, scooters, motorcycles, three wheelers). TWO WHEELERS >> MOTORCYCLE Bajaj Avenger Bajaj CT 100 Bajaj Discover DTSi Bajaj KB 125 Bajaj Platina Bajaj Pulsar DTS-Fi 220 CC Bajaj Pulsar DTSi
• • • •

180 CC 99.27 CC 135 CC 123 CC 99.27 CC 220 CC 180 CC 150 CC 200 CC 220 CC

Pulsar 180 DTS-i UG Pulsar 150 DTS-i UG Pulsar 200 Cc Pulsar 220 DTS-Fi

Bajaj Wind 125 Bajaj XCD >> SCOOTERS Bajaj Bravo Bajaj Chetak Bajaj Classic SL Bajaj Legend >> SCOOTERETTES/MOPEDS Bajaj Blade DTSi Bajaj Cagiva CRX Bajaj Fusion Bajaj Kristal DTSi Bajaj M 80 Electronic Bajaj Rave Bajaj Saffire Bajaj Spirit

124.6 CC 125 CC 145 CC 145.45 CC 145.45 CC 150 CC 100 CC 145 CC 145 CC 100 CC 74.08 CC 74.08 CC 74.4 CC 100 CC

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Bajaj Sunny Bajaj Sunny Spice Bajaj Wave DTSi

59.86 CC 59.86 CC 109.7 CC AWAITED MODELS

Sonic DTSi 1.1.2 Models of BAJAJ

Motorcycle

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 1989 1991 1994 1997 1999 2001 2002 2003 2005 CD-100 SLEEK CD-100 SS Splendor Street CBZ PASSION DAWN, AMBITION CD-DAWN, SPLENDOR +, PASSION +, KARIZMA SUPER-SPLENDOR, CD-DELUX, GLAMOUR, ACHIEVER

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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 100 Hero Honda Glamour
• •

Hero Honda CD Dawn Hero Honda CD 100 SS Hero Honda Splendor
• • •

Hero Honda CD Deluxe Hero Honda Glamour

Glamour Glamour - FI

Splendor + Super Splendor Splendor NXG

Hero Honda Passion Plus

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Hero Honda Sleek Hero Honda Hunk

Hero Honda CBZ X-TREME >> SCOOTERETTES/MOPEDS

Hero Honda Karizma

Hero Honda Pleasure Hero Panther Hero Stepmatic Hero Stepmatic Hero Winner 1.1.4 Hero Honda Models

Hero Ankur Hero Puch Automatic Hero Street Hero Puch Automatic

Hero Gizmo Hero Sakhti 3G Hero Winner Hero Sakthi 3G

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 Honda Shine Honda Unicorn Honda Stunner CBF Honda CBF Stunner FI CAPACITY 125 CC 149.1 CC 125 CC 124.7 CC

HONDA SCOOTERS MODEL Honda Eterno CAPACITY 147.7 CC

HONDA SCOOTERETTES/MOPEDS

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MODEL Honda Aviator Honda Activa Honda Dio

CAPACITY 102 CC 102 CC 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 5speed, 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

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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 TVS Apache RTR FI Suzuki Intruder M1800R TVS Centra Suzuki GS 150R TVS Fiero
• •

TVS Fiero F2 TVS Fiero FX

Suzuki Max 100 Suzuki Shogun TVS Victor
• • •

Suzuki Max 100R Suzuki Shaolin TVS Star
• •

Suzuki Samurai TVS Flame

TVS Victor GLX TVS Victor GX TVS Victor Edge

TVS Star TVS Star City

>> SCOOTERETTES/MOPEDS TVS Scooty Streak TVS Scooty

TVS XL

TVS Scooty ES

TVS XL Super

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• •

TVS Scooty Pep TVS Pep Plus

TVS XL Super HD

TVS XL Super TVS Apache RTR

TVS XL Super HD TVS Spectra DX/AX

Scooty Teenz Electric

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.

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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 Deluxe Bullet 500 Bullet Electra
• •

Enfield Diesel Bullet Machismo

Bullet Electra Bullet Electra 5S Lightning 500

Bullet Machismo 500 Taurus

Bullet Std 12V Thunderbird Twin spark

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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. We can classify these competitors into following groups according to their attributes and their competitive forces.

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S
FULLY DIVERSIFIED P E C I A L I S A T I O N GROUP A
High Mobility Barriers, Extensive Distribution & Product Diversification

GROUP B

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

SPECIALISED

Low Mobility Barriers Investment in Brand Promotion

PROMOTIONAL ACTIVITIES HIGH LOW

SWOT ANALYSIS

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GROUP A B

PLAYERS Bajaj, Hero Honda TVS

ATTRIBUTES Highly diversified Aggressive promotion Selectively diversified Aggressive Promotion Selectively diversified Moderate Promotion Highly specialized Low Promotion

C D

Honda, Yamaha Royal Enfield

COMPETITIVE FORCES - High buyer power - High competitive rivalry - High entry barriers - Low entry barriers - Narrow product lines imply that aggressive promotions can eat into market share - High threat of substitution (Rs 1 lakh car) - Low entry barriers - 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 4stroke bikes in India. Presently, its product portfolio includes Crux (100cc), Alba (106cc) and Gladiator (125cc). VISION

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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

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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: CAPITAL: PRESIDENT: EMPLOYEES: PARENT: SALES: PARENT: July 1, 1955 48,302 million yen (as of March 31, 2008) Takashi Kajikawa 46,850 (as of December 31, 2007) 9,019 (as of December 31, 2007) 1,756,707 million yen (from Jan 1, 2007 to Dec 31, 2007) 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007)

SALES PROFILE Sales (%) by product category (consolidated) BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

Sales (%) by region (consolidated)

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 realize our 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

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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?

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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

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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 • • • Extremely price sensitive Short PLC High R and D costs Weaknesses

Opportunities • • • • • Growing premium segment Increasing dispensable income Environmental concerns Exports increasing Very strong demand in the 100cc. segment dominated by limited players. • • • • •

Threats The Rs.1 Lakh car Cut throat competition Increasing number of players in the market Rising raw material costs Increasing rates of interest on

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

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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

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• • • • • •

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 (exshowroom Delhi).

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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.

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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).

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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

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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 musthave 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

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• • • • • • •

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 1,252k Suzuki Hayabusa 1300 is the world fastest production bike, the ultimate choice and preference of all bike lovers.

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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

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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 twowheeler maker TVS Motor Company on Monday launched an advanced version of its bike Apache fitted with fuel injection engine, priced at Rs 64,990.

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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. .

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1.7 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. 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

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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. ENGINE SPECIFICATIONS Displacement: 165cc Engine: Air-cooled, 4-stroke, SOHC, 2-valve Maximum Power: 15 Bhp (Expected)

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Maximum Torque: 14 Nm ( Expected) Gears: 5 Speed DIMENSIONS Length: 2065.00 mm Width: 730.00 mm Height: 1100.00 mm Ground Clearance: 155.00 mm Fuel Tank: 13.00 ltrs Wheelbase: 1300.00 mm

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. ENGINE SPECIFICATIONS Displacement: 180cc Engine: 4 Stroke, EFi Maximum Power: 18bhp Gears: 5 Speed

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DIMENSIONS Length: 2020.00 mm Width: 730.00 mm Height: 1100.00 mm Weight: 130.00 kg Ground Clearance: 180.00 mm Fuel Tank: 16.00 ltrs Wheelbase: 1300.00 mm OTHER SPECIFICATIONS Top Speed: 135kph Fuel Consumption (City): 28.00 Fuel Consumption (Highway): 42.00 Expected In: July, 2009

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 4stroke 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.

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- 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. Expected In: July, 2009

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. Expected In: July, 2009

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 litreclass 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

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racing superbike that also makes for a perfect street bike. Expected In: July, 2009

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 Expected In: July, 2009

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. Expected In: July, 2009

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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

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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

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Chapter 2.0

CRITICAL REVIEW OF LITERATURE

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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. ii. iii. Personal factors Cultural factors Psychological factors

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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 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

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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. There are two broad types of group influences: i. ii. Influence of intimate group. 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

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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 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.

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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.

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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.

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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.

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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.

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CHAPTER 3.0
HYPOTHESES

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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 they value most in a two wheeler. H0 = There is a significant relationship between income group and the 1st information source for the people. H1= There is no significant relationship between income group and the 1st information source for the people. H0 = There is a significant relationship between age group and the choice of features they value most in a two wheeler. H1= There is no significant relationship between age group and the choice of features they value most in a two wheeler.

H0 = There is a significant relationship between age group and the 1st information source for the people. H1= There is no significant relationship between age group and the 1st information source for the people.

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CHAPTER 4.0
EXECUTIVE SUMMARY

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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. 1. An extensive search of relevant literature from news articles, internet, books. This step guided the development of the methods and instruments for collecting data. 2. Designing the questionnaire.

3. Survey has been carried away by telephone, one-on-one interviews; The Survey
included both quantitative, forced-choice or close ended questions and qualitative, open-ended questions.

4. 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

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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.

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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

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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.

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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.

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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 Lakhimpur. The sample was judgmental and methodology was non probability sampling Size of Sample Sampling technique 100 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.

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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.

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Chapter 6.0

Data

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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.

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Chapter 7.0
FINDINGS AND ANALYSIS

7.1 RESULTS OF CUSTOMER SURVEY 7.2 HYPOTHESES TESTS

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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. BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA

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.

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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.

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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.

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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 Valid STYLE/DESIGN CONTOLLABILITY PICK UP REPUTATION OF MAKER RIDING COMFORT NEW TECHNOLOGY DURABILITY OTHERS MILEAGE Total 54 7 8 6 12 8 1 2 2 100 54.0 7.0 8.0 6.0 12.0 8.0 1.0 2.0 2.0 100.0 54.0 7.0 8.0 6.0 12.0 8.0 1.0 2.0 2.0 100.0 Cumulative Percent 54.0 61.0 69.0 75.0 87.0 95.0 96.0 98.0 100.0

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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.

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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 Valid YES NO Total 98 2 100 98.0 2.0 100.0 98.0 2.0 100.0 Cumulative Percent 98.0 100.0

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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 they value most in a two wheeler. H1= There is no significant relationship between income group and the choice of features they value most in a two wheeler.

Case Processing Summary Cases Valid N MONTHLY HOUSEHOLD INCOME * PURCHASING REASONS 100 Percent 100.0% N 0 Missing Percent .0% N 100 Total Percent 100.0%

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MONTHLY HOUSEHOLD INCOME * PURCHASING REASONS Cross tabulation PURCHASING REASONS OF REPUTATION PICK UP NEW TECHNOLOGY CONTROLLABILITY RIDING COMFORT DESIGNSTYLE/ DURABILITY MILEAGE 0 .0% 0 .0% OTHERS TOTAL 17 100. 0% 17.0 % 17.0 % 33 100. 0% 33.0 % 33.0 % 40 100. 0%

MONTHLY HOUSEHOLD INCOME

UPTO 10000

Count % within MONTHLY HOUSEH OLD INCOME % within PURCHAS ING REASONS % of Total Count % within MONTHLY HOUSEH OLD INCOME % within PURCHAS ING REASONS % of Total

8 47.1%

1 5.9%

2 11.8 %

MAKER 2 11.8%

4 23.5 %

0 .0%

0 .0%

14.8%

14.3 %

25.0 %

33.3%

33.3 %

.0%

.0%

.0%

.0%

8.0% 18 54.5%

1.0% 2 6.1%

2.0% 3 9.1%

2.0% 0 .0%

4.0% 2 6.1%

.0% 4 12.1 %

.0% 1 3.0%

.0% 1 3.0%

.0% 2 6.1%

1000 12000 0

33.3%

28.6 %

37.5 %

.0%

16.7 %

50.0 %

100. 0%

50.0 100.0 % %

18.0%

2.0%

3.0%

.0%

2.0%

4.0%

1.0%

1.0%

2.0%

2000 14000 0

Count 24 4 3 2 5 1 0 1 % within 60.0% 10.0 7.5% 5.0% 12.5 2.5% .0% 2.5% BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA MONTHLY % % HOUSEH OLD INCOME

0 .0%

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 31.685a 33.007 .006 100 df 32 32 1 Asymp. Sig. (2-sided) .482 .418 .936

a. 42 cells (93.3%) have expected count less than 5. The minimum expected count is .01.

Symmetric Measures Value Interval by Interval Ordinal by Ordinal N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. Pearson's R Spearman Correlation -.008 -.016 100 Asymp. Std. Errora Approx. Tb Approx. Sig. .092 .100 -.080 -.154 .936c .878c

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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 source for the people.

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H1= There is no significant relationship between income group and the 1st information source for the people.

Case Processing Summary Cases Valid N MONTHLY HOUSEHOLD INCOME * SOURCE OF AWARENESS 100 Percent 100.0% N 0 Missing Percent .0% N 100 Total Percent 100.0%

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MONTHLY HOUSEHOLD INCOME * SOURCE OF AWARENESS Cross tabulation SOURCE OF AWARENESS FRIENDSFAMILY/ SHOWROOM MAGAZINE WEBSITE/BLOGS TVCF ROADSHOW/TES TRIDE NEWSPAPER AUTOEXPO OTHERS 0 .0%

Total

MONTHLY HOUSEHOLD INCOME

UPT O 100 00

100 01200 00

Count % within MONTHL Y HOUSE HOLD INCOME % within SOURC E OF AWARE NESS % of Total Count % within MONTHL Y HOUSE HOLD INCOME % within SOURC E OF AWARE NESS % of Total

5 29.4 %

4 23.5 %

1 5.9%

3 17.6 %

3 17.6%

0 .0%

1 5.9%

0 .0%

17 100.0 %

11.1 %

16.7 %

20.0%

25.0 %

60.0%

.0%

33.3%

.0%

.0%

17.0%

5.0 % 16 48.5 %

4.0% 8 24.2 %

1.0% 1 3.0%

3.0 % 3 9.1 %

3.0% 1 3.0%

.0% 2 6.1%

1.0% 1 3.0%

.0% 1 3.0%

.0% 0 .0%

17.0% 33 100.0 %

35.6 %

33.3 %

20.0%

25.0 %

20.0%

50.0%

33.3%

100.0 %

.0%

33.0%

16.0 %

8.0%

1.0%

3.0 %

1.0%

2.0%

1.0%

1.0%

.0%

33.0%

200 01400 00

Count 20 11 3 4 1 0 0 0 % within 50.0 27.5 7.5% 10.0 2.5% .0% .0% .0% MONTHL % % % Y HOUSE HOLD BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER NOIDA INCOME % within 44.4 45.8 60.0% 33.3 20.0% .0% .0% .0% SOURC % % % E OF

1 2.5%

40 100.0 %

100. 0%

40.0%

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 30.288a 28.748 .274 100 df 32 32 1 Asymp. Sig. (2sided) .553 .632 .601

a. 40 cells (88.9%) have expected count less than 5. The minimum expected count is .01.

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.

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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. OBSERVATION: 4: 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 V H0 = There is a significant relationship between age group and the choice of features they value most in a two wheeler. H1= There is no significant relationship between age group and the choice of features they value most in a two wheeler.

Case Processing Summary Cases Valid N PURCHASING REASONS * AGE 100 Percent 100.0% N 0 Missing Percent .0% N 100 Total Percent 100.0%

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PURCHASING REASONS * AGE Cross tabulation AGE 16-20 STYLE/DESIGN Count 17 21-25 20 37.0% 48.8% 20.0% 3 42.9% 7.3% 3.0% 4 50.0% 9.8% 4.0% 4 66.7% 9.8% 4.0% 5 41.7% 12.2% 5.0% 4 26-30 13 Above 30 4 Total 54

% within PURCHASING 31.5% REASONS % within AGE % of Total 60.7% 17.0%

24.1% 7.4% 100.0% 65.0% 36.4% 13.0% 4.0% 0 1 54.0% 54.0% 7

CONTROLLABILI Count 3 TY % within PURCHASING 42.9% REASONS % within AGE % of Total PICK UP Count 10.7% 3.0% 2

.0% 14.3% 100.0% .0% 9.1% .0% 1.0% 1 1 7.0% 7.0% 8

% within PURCHASING 25.0% REASONS % within AGE % of Total REPUTATION OF Count MAKER % within PURCHASING REASONS % within AGE % of Total PURCHASING REASONS RIDING COMFORT Count .0% .0% 3 7.1% 2.0% 0 .0%

12.5% 12.5% 100.0% 5.0% 9.1% 1.0% 1.0% 0 2 8.0% 8.0% 6

.0% 33.3% 100.0% .0% 18.2% .0% 2.0% 2 2 6.0% 6.0% 12

% within PURCHASING 25.0% REASONS % within AGE % of Total 10.7% 3.0% 1

16.7% 16.7% 100.0% 10.0% 18.2% 2.0% 2.0% 3 0 12.0% 12.0% 8

NEW TECHNOLOGY

Count

% 37.5% BBS INSTITUTE within PURCHASING STUDIES, GREATER NOIDA.0% 100.0% OF MANAGEMENT 12.5% 50.0%

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 22.567a 26.816 .917 100 df 24 24 1 Asymp. Sig. (2-sided) .545 .313 .338

a. 32 cells (88.9%) have expected count less than 5. The minimum expected count is .11.

Symmetric Measures Value Interval by Interval Ordinal by Ordinal N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. Pearson's R Spearman Correlation .096 .084 100 Asymp. Std. Errora Approx. Tb Approx. Sig. .102 .100 .957 .838 .341c .404c

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OBSERVATION: 1: Around 61% of people in the 21-25 years age group and 75% of 2630 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. 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 VI H0 = There is a significant relationship between age group and the 1st information source for the people.

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H1= There is no significant relationship between age group and the 1st information source for the people.

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SOURCE OF AWARENESS * AGE Cross tabulation AGE 16-20 TVCF Count % within SOURCE OF AWARENESS % within AGE % of Total FAMILY/FRIENDS Count % within SOURCE OF AWARENESS % within AGE % of Total ROADSHOW/TESTRI Count DE % within SOURCE OF AWARENESS % within AGE % of Total SHOWROOM Count % within SOURCE OF AWARENESS % within AGE SOURCE OF AWARENESS % of Total MAGAZINE Count % within SOURCE OF AWARENESS 10 22.2% 21-25 16 35.6% 26-30 14 31.1% Above 30 5 Total 45

11.1% 100.0 % 45.5% 45.0% 5.0% 45.0% 5 24

35.7% 10.0% 7 29.2%

39.0% 16.0% 8 33.3%

70.0% 14.0% 4 16.7%

20.8% 100.0 % 45.5% 24.0% 5.0% 24.0% 0 5

25.0% 7.0% 1 20.0%

19.5% 8.0% 4 80.0%

20.0% 4.0% 0 .0%

.0% 100.0 % .0% .0% 1 5.0% 5.0% 12

3.6% 1.0% 1 8.3%

9.8% 4.0% 8 66.7%

.0% .0% 2 16.7%

8.3% 100.0 % 9.1% 12.0% 1.0% 12.0% 0 5

3.6% 1.0% 4 80.0%

19.5% 8.0% 1 20.0%

10.0% 2.0% 0 .0%

.0% 100.0 % 5.0%

% within AGE 14.3% 2.4% BBS INSTITUTE OF MANAGEMENT STUDIES, GREATER.0% NOIDA .0%

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 30.503a 32.730 7.581 100 df 24 24 1 Asymp. Sig. (2-sided) .169 .110 .006

a. 31 cells (86.1%) have expected count less than 5. The minimum expected count is .11.

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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. 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

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

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2009

ExCompany Model showroom price Yamaha R15 97,425

% resale value ‘09

2008

2007

82.11

80,000

75,000

_____

HHML

CBZ

57,450

69.62

40,000

34,000

27,000

HHML

Karizma

72,800

68.68

50,000

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

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Company

Model

Ex- price

% value

resale2009

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 TVS

Pulsar 150 Apache RTR

60,143 60,825

88.12 88.77

53000 54000

38k-44k 40,000

30,000 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

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Company

Model

Exprice

% resale value

2009

2008

2007

Yamaha

Glad ss

52,100 71.51

38,000 30,000 26,000

Yamaha

Glad rs

52,600 72.24

38,000 30,000 26,000

HHMl

Super splendor

44,450 94.48

42,000 38,000

TVS

Flame

48,550 86.50

42,000 34,000

Bajaj

Discover 50,145 135

40,000 35,000

4 .ENTRY SEGMENT
Company Model Ex Price %resale value Bajaj Platina 100 TVS Star 39,060 64.00 25,000 22,000 20,000 35,196 78.13 27,500 25,000 22,000 2009 2008 2007

Yamaha

Alba

43,890

63.79

28,000

23,000

18,000

HHML

Splendor +

38,250

83.66

32,000

26,000

22,000

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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

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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

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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.

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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.

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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

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CHAPTER 9.0

BIBLIOGRAPHY & REFERENCES

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9.1 BIBLIOGRAPHY
1) 2) 3)
2002. 4) Batra Satish & Kazmi SHH ; Consumer behaviour text & cases; 1999. Phillip Kotler; Principles of marketing, 7th Edition; Pearson Publication. Saxena and Rajan; Marketing Management; Tata McGraw Hill; 3rd Edition Ramaswami, V.S. and Namakumari, S.; Marketing Management; Macmillan India;

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.

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

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.html http://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

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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 July
http://www.siamindia.com/scripts/market-share.aspx 13. Overview of Production Trend of automobile industry http://www.siamindia.com/scripts/production-trend.aspx

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CHAPTER 10.0

ANNEXURES 10.1 QUESTIONNAIRE

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10.1 SAMPLE QUESTIONNAIRE

QUESTIONNAIRE (For FZ customers)
ContactPlace: Model: cc: Date of purchase: 2. Age: b) single d) Shop owner

1. Name: 3. Marital status: a) married

4. What is your occupation? a) Student b) Office employee c) Factory employee 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.40,00160,000 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 7. Who paid for your MC? a) Self b) Loan b) Family [D/P: c) Others: b) No ]

8. Did you considered other motorcycle while buying this model? a) Yes 9. Which model did you compare with? Model: 10. Have you seen FZ 16 TVCF? a) Yes b) No b) No b) No b) No cc:

11. Have you seen FZ 16 newspaper advertisement? a) Yes 12. Have you seen FZ 16 magazine advertisement? 13. Do you take information from internet blogs? Which blog? a) Yes a) Yes

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

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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______

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CASE STUDY

ON YAMAHA

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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

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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 Indian two 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 fuelefficient. • The first choice among youths and teenagers.

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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 is one 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 largest manufacturer 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.

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Market Segmentation The market for two wheeler can be segmented into following categories
Entry segment level

Premium segment

Executive segment

Deluxe segment

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

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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 BANGALORE Bikes 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
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 Exports increasing Very strong demand in the 100cc. segment dominated by limited players.

Threats The Rs.1 Lakh car Cut throat competition Increasing number of players in the market Rising raw material costs Increasing rates of interest on finance

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COMPETITORS ANALYSIS (Players Operating in The Market)

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.

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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.

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SWOT ANALYSIS
GROUP A B PLAYERS Bajaj, Hero Honda TVS ATTRIBUTES Highly diversified Aggressive promotion Selectively diversified Aggressive Promotion Selectively diversified Moderate Promotion Highly specialized Low Promotion COMPETITIVE FORCES - High buyer power - High competitive rivalry - High entry barriers - Low entry barriers - Narrow product lines imply that aggressive promotions can eat into market share - High threat of substitution (Rs 1 lakh car) - Low entry barriers - Low buyer power – high brand loyalty - Product diversification will imply risk of brand dilution

C D

Honda, Yamaha Royal Enfield

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 4stroke 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

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& 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: CAPITAL: PRESIDENT: EMPLOYEES: PARENT: SALES: PARENT: SALES PROFILE Sales (%) by product category (consolidated) July 1, 1955 48,302 million yen (as of March 31, 2008) Takashi Kajikawa 46,850 (as of December 31, 2007) 9,019 (as of December 31, 2007) 1,756,707 million yen (from Jan 1, 2007 to Dec 31, 2007) 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007)

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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. Threats • Global expansion into the Caribbean • Cut throat competition & Central America. • Increasing number of players in the market • Expansion of target market (include • Rising raw material costs women). • Increasing rates of interest on finance • Increasing dispensable income. • 1st mover advantage.

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...

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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-agribusiness, 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

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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 operations As 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 fourstroke 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.

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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 .

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

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.

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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 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 India Quality 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

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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 : Focus On Premium Segment of Indian Society. 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
1. 2.

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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 .

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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.

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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. Expected In: July, 2009

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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.

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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 INDIA YAMAHA MOTORS 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.
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