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Summer Training Project Report On: A Study On Customer Buying Behaviour of Yamaha Two Wheeler Bikes
Summer Training Project Report On: A Study On Customer Buying Behaviour of Yamaha Two Wheeler Bikes
Gyanendra Nishad
IMBA- 7th Sem.
Roll No. 1130675035
Under Supervision of
Kaleem Abbas
Session-2016-17
SCHOOL OF MANAGEMENT
1
CERTIFICATE
1
BONAFIDE CERTIFICATE
2
ACKNOWLEDGEMENT
It is a pleasure to record my thanks and gratitude to persons and organizations whose generous
help and support enabled me to complete this project within the stipulated time period. My
special thanks are due to Mr. Kaleem Abbas, General Manager, Yamaha Motors Ltd., for
her active help and support in making me understand Indian two wheeler industry, who guided
me at each step during my training period and without whom preparation of this report would
not have been possible. I would like to thank. Sushil Pandey Sir (Dean of School of
I am greatly indebted to all those persons who have helped me in some way or other in the
GYANENDRA NISHAD
IMBA- 7th sem.
Roll no.-1130675035
3
TABLE OF CONTENTS
Company profile
Industry profile
Products of Yamaha
SWOT checklist
Research process
Research design
Scope of study
Chapter.-5 DATA COLLECTION AND
PRESENTATION
Chapter -6 GRAPHICAL DATA ANALYSIS AND ITS
INTERPRETATION
Chapter.-7 FINDINGS OF THE RESEARCH
Chapter.-8 GAPS IN LITERATURE REVIEW
Chapter-9 SCOPE OF FURTHER RESEARCH
Chapter.-10 PROBLEM IDENTIFICATION
Chapter.-11 CONCLUSION
Chapter.-12 SUGGESTIONS
Chapter -13 LIMITATIONS
Chapter -14 ANNEXTURE
Chapter -15 BIBLIOGRAPHY
4
OBJECTIVE
SUMMARY
RESEARCH METHODOLOGY :
Sample size
5
100 Respondent.
Brands covered
Yamaha
Bajaj
Honda
Tvs
Suzuki
Target Area
Lucknow
Sampling used
simple random
Scaling used
DATA ANALYSIS:
Analysis was done on the basis of 22 parameters. Bar charts were developed on
these parameters which compare different brands in the 2 wheeler industry. With the
help of these charts. Yamahas position in the market is found and analysed.
6
SUGGESTIONS :
Introduction of new brands. this may turn the market oligopolistic but will definitely
Looks and style should not be over stressed as compared to quality and mileage.
Yamahas R & D facilities should coordinate with the marketing wing to give
Secondary research shows that yamaha has a good brand awareness. But when it
followed.
Focus should be on young teenagers and executives as they represent largest portion
Indian customers generally do not use bike for fashion but as a necessity so mileage
should be a concern.
7
CHAPTER 1
INTRODUCTION
8
INTRODUCTION
Research means detailed study of a problem. Here, the details of the marketing
problem are collected and studied, conclusions are drawn and suggestions are made
to solve the problem quickly, correctly and systematically. In MR, specific marketing
problem is studied in depth by collecting and analyzing all relevant information and
solution are suggested to solve the problem which may be related to consumers,
9
MR also acts as an important tool to study buyer behavior, changes in consumer life-
style and consumption patterns, brand loyalty and forecast market changes.
one hand and sales promotion on the other hand. It is rightly treated as the soul of
problem to marketing manager for his consideration and final selection. It is rightly
said that the beginning and end of marketing management is marketing research. It is
They are now national and even global in character. The marketing activity is
domestic and global markets. Manufactures find it difficult to establish close contact
with all markets and consumers directly. Similarly, they have no control on the
2) to middlemen. This situation creates new problem before the manufacturers which
10
first hand information, reaction, etc. of consumers and middleman. Marketing
there is a wide gap between producers and consumers in the present marketing
system. Due to mass scale production and distribution, direct contact between
needs, expectation and reactions of consumers, they are unable to adjust their
products, packaging, prices, etc. as per the needs of consumers. The problem created
contact with consumers and collect first hand information about their needs,
expectation, likes, dislikes, preferences and special features of their behavior. Thus,
MR is needed for removing the wide communication gap between producers and
consumers.
India, many changes are taking place in the composition of population. There is a
shift of population from rural to urban areas. There have been considerable changes
the people, in general, are rising. This brings corresponding increase in their
purchasing capacity and buying needs and habits. The demand for consumer
durables is fast increasing. The market are now flooded with consumer durables like
TV sets and so on. Manufacturers are expected to know such qualitative and
quantitative changes in the consumer preferences and their consumption pattern. For
11
needed for the study of changes in the pattern of consumption and corresponding
position in modern marketing system. They are now well informed about market
trends, goods available, consumer rights and protection available to them through
consumer protection acts, the growth of consumerism has created new challenges
situation when manufacturers have to understand such expectations and adjust the
lead to loss of business. In the present marketing system, consumers cannot be taken
for granted. Marketing research particularly consumer research gives valuable data
marketing policies. Thus, marketing decisions can be made pro consumer through
unavoidable in the present marketing field. Such competition may be due to various
factors such as price, quality, and packaging, advertising and sales promotion
techniques. Entry of new competitors creates new problems in the marketing of goods
alone. There are other non-price factors such as packaging, branding, after-sales and
advertising which create severe market competition. Every producer has to find out
the extent of such non-price competition and the manner in which he can face it with
face market competition even by using certain non-price factors. The shifting of
competition from price to non-price factors has made marketing of consumer goods
12
more complicated and challenging. This challenge can be faced with confidence by
executive have to take quick and correct decision. Companies have to develop and
market new products more quickly than ever before. However, such decision is
always difficult. Moreover, wrong decisions may bring loss to the organisation. For
correct decision making, marketing executive need reliable data and up to date market
marketing are located, defined, analysed and solved through MR techniques. This
suggests its need as a tool for decision making. MR is needed as a tool for reasonably
CHAPTER 2
13
CRITICAL REVIEW OF
LITERATURE
LITERATURE REVIEW
manifestation of the state of satisfaction will vary from person to person and
both psychological and physical variables which correlate with satisfaction behaviors
such as return and recommend rate. The level of satisfaction can also vary depending
14
on other options the customer may have and other products against which the
organizational change measurement and are most often utilized to develop the
architecture for satisfaction measurement as an integrated model. The basis for the
provides the measurer with a satisfaction "gap" which is objective and quantitative in
of performance.
Marketers in recent times have realized the importance of marketing orientation, and
this is being reflected in the application of marketing mix elements. Consumers needs
depth knowledge about the consumers, starting with who is he. Is there a real Indian
15
research tends to favor the view that that there are distinct types, and we need to
Customer satisfaction as the key element for success in business is a major concern
for any industry. In this paper I have tried to propose a how customer satisfaction level
marketplace.
16
Selecting Target Market
segments with very distinct wants and needs. Identifying these groups, learning how
they behave and how they make their purchase decisions enables the marketer to
design and market products or services particularly suited for their wants and needs.
Based on earlier done research following conclusion were drawn about Yamaha
Yamahas objective
It produces bikes that have speed and power irrespective of the mileage.
Customers age
20-35 years.
Income group -
Prime focus
Style
Performance
Value of money
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Based on earlier research done Hero Honda, Bajaj Auto and Enfield motorcycles have
come out tops in the customer satisfaction ratings in the 2007 TNS Motorcycle Total
The study says that newly launched motorcycles including the Splendor NXG and CBZ
Extreme from Hero Honda, Discover 135 from Bajaj Auto and Bullet 350 from Enfield
The study was conducted by compiling responses of more than 7,000 new motorcycle
buyers as regards the performance of more than 50 models across parameters like sales
The index score provides a measure of satisfaction and loyalty that a given model or
The study also found that the expectation of the buyer of standard motorcycles (entry
level bikes) has gone up from the previous level, now the buyer also expects similar
satisfaction. In transacting with the service dealer, competitive pricing and explanation
For the upper executive segment latest technology and style have gained importance.
Premium segment buyers are at the center of focus for all of the manufacturers that have
educated the customer and empowered him to buy consciously after comparing all the
18
options, now he expects manufacturers to give him the best technology, he questions
salesperson and look for the best financing options available and demands quick service.
For future purchases the preference for motorcycles with high engine capacity (150cc
and above) is seen in all four regions of the country however it is almost 70% in south
closely followed by west. Across the country, close to 24% of current motorcycle
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CHAPTER 3
CORPORATE
INTRODUCTION
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COMPANY PROFILE
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
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
21
The company pioneered the volume bike segment with the launch of its 100 cc 2-stroke
motorcycle RX 100. Since then, it has introduced an entire range of 2-stroke and 4-
stroke bikes in India. Presently, its product portfolio includes Crux (100cc), Alba
"creating Kando" (touching their hearts) - the first time and every time with world class
Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of
YAMAHA products, focusing on serving our customer where we can build long term
& innovative technology. Our innovative solutions will always exceed the changing
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
development. As a good corporate citizen, we will conduct our business ethically and
22
Grow through continuously innovating our business processes for creating value and
knowledge across our customers thereby earning the loyalty of our partners & increasing
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
Team-work
We work cohesively with our colleagues as a multi-cultural team built on trust, respect,
our success.
23
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.
Manufacturing Process:
(Haryana) and Surajpur (Uttar Pradesh). Currently 10 models roll out of the two Yamaha
Plants.
The infrastructure at both the plants supports production of motorcycles and it's parts for
the domestic as well as oversees market. At the core are the 5-S and TPM activities that
fuel our agile Manufacturing Processes. We have In-house facility for Machining,
Welding processes as well as finishing processes of Electroplating and Painting till the
assembly line.
The stringent Quality Assurance norms ensure that our motorcycles meet the reputed
Corporate Philosophy. The Company boasts of effluent Treatment plant, Rain water -
the anvil - early next year. All our endeavors give us reason to believe that sustainable
development for Yamaha will not remain merely an idea in pipeline.We believe in taking
care of not only Your Motoring Needs but also the needs of Future Generations to come.
Corporate Philosophy:
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For society, for the world
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
engine technology and FRP processing technology as well as control and component
technologies.
It can also be said that our corporate history has taken a path where people are the
fundamental element and our product creation and other corporate activities have always
been aimed at touching peoples hearts. Our goal has always been to provide products
that empower each and every customer and make their lives more fulfilling by offering
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
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26
Hierarchical Structure
Chief Manager
Assistant Manager
Senior Superintendent
Senior Officer
Assistant Officer
27
Industry profile
The Indian automotive industry consists of five segments: commercial vehicles; multi-
utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With
5,822,963 units sold in the domestic market and 453,591 units exported during the first
nine months of FY2005 (9MFY2005), the industry (excluding tractors) marked a growth
of 17% over the corresponding previous. The two-wheeler sales have witnessed a
9MFY2007 with 256,765 units exported. The total two-wheeler sales of the Indian
industry accounted for around 77.5% of the total vehicles sold in the period mentioned.
Demand Drivers:
The demand for two-wheelers has been influenced by a number of factors over the past
five years. The key demand drivers for the growth of the two-wheeler industry are as
follows:
rural areas;
Increased availability of cheap consumer financing in the past 3-4 years;
Increasing availability of fuel-efficient and low-maintenance models;
Increasing urbanization, which creates a need for personal transportation;
Changes in the demographic profile;
Difference between two-wheeler and passenger car prices, which makes
consumer needs.
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While the demand drivers listed here operate at the broad level, segmental demand is
29
YAMAHA PRODUCTS
(whose HQ is at 2500 Shingai, Iwata, Shizuoka), is part of the Yamaha Corporation. After
expanding Yamaha Corporation into the world's biggest piano maker, then Yamaha CEO
Genichi Kawakami took Yamaha into the field of motorized vehicles on July 1, 1955. The
company's intensive research into metal alloys for use in acoustic pianos had given
Yamaha wide knowledge of the making of lightweight, yet sturdy and reliable metal
constructions. This knowledge was easily applied to the making of metal frames and motor
parts for motorcycles. Yamaha Motor is the world's second largest producer of motorcycles
(after Honda). It also produces many other motorized vehicles such as all-terrain vehicles,
The Yamaha corporate logo is comprised of three tuning forks placed on top of each other
in a triangular pattern.
In 2000, Toyota and Yamaha Corporation made a capital alliance where Toyota paid
Yamaha Corporation 10.5 billion yen for a 5 per cent share in Yamaha Motor Company
while Yamaha and Yamaha Motor each bought 500,000 shares of Toyota stock in return.
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RACING HERITAGE
Yamaha has a long racing heritage where it has had its machines and team win many
different competitions in many different areas, for example both road and off road racing,
also Yamaha has had great success with riders such as Bob Hannah, Heikki Mikkola,
Kenny Roberts, Chad Reed, Jeremy McGrath, Stefan Merriman, Wayne Rainey, and the
latest, Valentino Rossi. Yamaha is known to those who are older in age as the designer of
the modern motocross bike, as they were the first to build a production mono-shock
motocross bike (1975 for 250 and 400, 1976 for 125) and one
of the first to have a water-cooled motocross production bike (1981, but 1977 in works
bikes).
Since 1962 ,Yamaha produced production road racing grand prix motorcycles that any
licensed road racer could purchase. In 1970, Non-factory "privateer" teams dominated the
250cc World Championship with Great Britains Rodney Gould winning the title on a
Yamaha TD2.
MOTORCYCLE MODELS
Yamaha has made an extensive number of two- and four-stroke scooters, on-road and off-
road motorcycles. The Yamaha XS 650, introduced in 1970, was such an overwhelming
31
ELECTRICAL VEHICLES
MOTORCYCLES
Yamaha Alba
Yamaha Frog
Yamaha Libero
Yamaha Gladiator
Yamaha Mest
Yamaha Eccy
Yamaha Passol
Yamaha EC-02
Yamaha Passol-L
Yamaha Yz85
Yamaha V-Star
Yamaha YZF-R1
Yamaha FZ1
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MOPEDS
Yamaha Jog
Yamaha Jog R
Yamaha Neo's
Yamaha BW'S
Yamaha Morphous
Yamaha Lagend
Yamaha DT50
Yamaha TZR
Yamaha QT50
GOLF CARTS
Yamaha
Yamaha Drive
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PERSONAL WATERCRAFT
Wave Runner
WHEELCHAIRS
JW Active
JW-IB
JWX-1
JW-II
JW-I
Wetard chair 85
ALL-TERRAIN VEHICLES
YFZ450
Blaster 200
Banshee 350
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Warrior 350
Bruin 350
Tri-Z 250
SNOWMOBILES
Yamaha has recently claimed a 100% four-stroke snowmobile line-up, making them the
only snowmobile manufacturer to do so. In Canada though, there are still three models that
Yamaha manufactures that are still 2 stroke. They are the Bravo, VK 540 and the Venture
XL. Yamaha had introduced four-strokes to their line-up in 2003 and the line-up became
four-stroke based for model year 2005. Many say that Yamaha has proven snowmobiles
can be clean, efficient, and reliable all while maintaining strong performance. The RX-1
released in 2003 was the first performance-oriented four-stroke snowmobile to ever hit the
market. It was not, however, the first modern four-stroke snowmobile produced. That
honor belongs to Arctic Cat for their Yellowstone Special, released in 2000, which was
designed as a rental sled that could meet Yellowstone National Park's stringent emission
requirement. However, the Yamaha received much criticism for its weight disadvantage
when compared to similar two-strokes, despite its excellent fuel economy and low-range
torque. Yamaha is now on the cutting edge of four-stroke technology with the introducing
35
which is equipped on the Phazer and Venture Lite models. This engine has one of the
highest specific output of any four-stroke in production, with 160 HP/L, Yamaha achieves
this even without the use of a forced induction system. Yamaha is also a key player in the
"four-stroke wars", which are a series of advertisements from opponent Ski-Doo who
claim their 2-tec and power-tek equipped two-strokes are still cleaner and more efficient
than four-strokes, while Yamaha still claims the four-strokes are cleaner. Yamaha also
broke a multi-year absence from sno-cross in the winter of 2006-07 with their introduction
of a factory race team headed by former Arctic Cat racer Robbie Malinoski.
CURRENT LINE-UP
Bravo
Apex
Attack
Nytro
FX Nytro
RS Rage
RS Vector
RS Venture
VK Professional
36
Bravo
coRy
Enticer
Exciter
Mountain Max
RX-1
SnoScoot
Sno Sport
SRV 540
SRX
SRX 440
SX R
SX Viper/Venom
Venture
VK 540
VMAX
VMAX SX
Vmax
Vmax-4
SNOW BLOWERS
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YT-600E
YT-600ED
YT-660EDJ
YS-870
YS-870J
YS-1070
YT-1080ED
YT-1080EX
YT-1290EX
YT-1290EXR
YS-1390A
YS-1390AR
YAMAHA-R15
REMOTE-CONTROLLED HELICOPTERS
Yamaha R-50
Yamaha R-MAX
OUTBOARD MOTORS
4 stroke series
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2 stroke V6
Full list
KART ENGINES
KT SERIES 2 STROKE
KT100SD
KT100SC
KT100SEC
KT100SP
KT100J
KT100AX
KT100A2
OTHER VEHICLES
Yamaha has also built engines for other manufacturers' vehicles, most notably the V-6 and
V-8 engine for the Ford Taurus SHO. The Volvo XC90 uses a larger version of the same
Yamaha V-8 engine. They also built Formula One racing engines from the late 1980s to the
mid 1990s, with little on track success. In 1991, Yamaha developed its F1 engined supercar
called the OX99-11 where two drivers sit in tandem in front of the engine, but the project
39
Yamaha also tunes engines for other manufacturers, Toyota being one of them. Yamaha
logos are, for instance, found on the Toyota S engines. As well as the 2ZZ-GE utilized by
Yamaha developed a prototype for a two-seater sports car with help of Albrecht Goertz.
While the Yamaha/Nissan partnership never progressed beyond the prototype stage, Toyota
Yamaha is also one of the big 4 companies in the Personal water craft market.
WATER PURIFIER
ALKALION PURIFIER
OH-A21N
PURIFIER
OH-U20-SA2
OH-U20-SB1
OH-U30-HS
OH-U30-KA4
OH-U30-SB3
OH-U40-KA2
OH-U40-SB1
BUSINESS MACHINES
Robot
Surface mounter
Pool
CNC machine
Golf car
o G31E
40
o G31AL
Engine
o MT series (2 stroke)
MT 110
MT 110 VLS
o MZ series (4 stroke)
MZ 125
MZ 175
MZ 250
MZ 300
MZ 360
o My Tank
Oil separator
o Pattol series
Food additive
o M series
o SH series
41
o 3HP multi
o Living mate
o YCJ series
MARKET CHARACTERSTRICS
The three main product segments in the two-wheeler category are scooters, motorcycles and
mopeds. However, in response to evolving demographics and various other factors, other sub
segments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first
two emerged as a response to demographic changes, the introduction of 4-stroke scooters has
followed the imposition of stringent pollution control norms in the early 2000. Besides, these
prominent sub-segments, product groups within these sub-segments have gained importance
in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc.
The characteristics of each of the three broad segments are discussed in Table 1.
2008)
2-stroke, 4-
Stroke Mainly 4-stroke 2-stroke
stroke
42
Engine
90-150 100, 125, > 125 50, 60
Capacity (cc)
Ignition Kick/Electronic Kick/Electronic Kick/Electronic
Engine
6.5-9 7-8 and above 2-3
Power (bhp)
Weight (kg) 90-100 > 100 60-70
Fuel
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SEGMEN MARKET SHARE
The Indian two-wheeler industry has undergone a significant change over the past 10
years with the preference changing from scooters and mopeds to motorcycles. The
scooters segment was the largest till FY1998, accounting for around 42% of the two-
wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market
Respectively, that year). However, the motorcycles segment that had witnessed high
growth (since FY1994) became larger than the scooter segment in terms of market share
for the first time in FY1999. Between FY1996 and 9MFY2007, the motorcycles segment
more than doubled its share of the two-wheeler industry to 79% even as the market shares
Over the past 10-15 years the demographic profile of the typical two-wheeler customer
has changed. The customer is likely to be salaried and in the first job. With a younger
audience, the attributes that are sought of a two-wheeler have also changed. Following
the opening up of the economy and the increasing exposure levels of this new target
audience, power and styling are now as important as comfort and utility.
The marketing pitch of scooters has typically emphasized reliability, price, comfort and
utility across various applications. Motorcycles, on the other hand, have been
traditionally positioned as vehicles of power and style, which are rugged and more
durable. These features have now been complemented by the availability of new designs
and technological innovations. Moreover, higher mileage offered by the executive and
entry-level models has also attracted interest of two-wheeler customer. Given this market
positioning of scooters and motorcycles, it is not surprising that the new set of customers
has preferred motorcycles to scooters. With better ground clearance, larger wheels and
better suspension offered by motorcycles, they are well positioned to capture the rising
44
demand in rural areas where these characteristics matter most.
Scooters are perceived to be family vehicles, which offer more functional value such as
broader seat, bigger storage space and easier ride. However, with the second-hand car
market developing, a preference for used cars to new two-wheelers among vehicle buyers
cannot be ruled out. Nevertheless, the past few years have witnessed a shift in preference
towards gearless scooters (that are popular among women) within the scooters segment.
Motorcycles offer higher fuel efficiency, greater acceleration and more environment-
friendliness. Given the declining difference in prices of scooters and motorcycles in the
past few years, the preference has shifted towards motorcycles. Besides a change in
motorcycles and scooters, another factor that has weighed in favour of motorcycles is the
high re-sale value they offer. Thus, the customer is willing to pay an up-front premium
while purchasing a motorcycle in exchange for lower maintenance and a relatively higher
resale value.
Manufacturers
As the following graph indicates, the Indian two-wheeler industry is highly concentrated,
with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and
TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as in
FY2007. The other key players in the two-wheeler industry are Kinetic Motor Company
(LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal
Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd. (HMSI).
45
Although the three players have dominated the market for a relative long period of time,
their individual market shares have undergone a major change. Bajaj Auto was the
undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry
volumes in the country that year. Bajaj Auto dominance arose from its complete hold over
the scooter market. However, as the demand started shifting towards motorcycles, the
company witnessed a gradual erosion of its market share. HHML, which had
concentrated on the motorcycle segment, was the main beneficiary, and almost doubled
its market share from 20% in FY2000 to 50% in FY2007 to emerge as the market leader.
TVS, on the other hand, witnessed an overall decline in market share from 22% in
FY2000 to 17% FY2007. The share of TVS in industry sales fluctuated on a year on year
basis till FY2003 as it changed its product mix but has declined since then.
Technology
Hitherto, technology transfer to the Indian two-wheeler industry took place mainly
through: licensing and technical collaboration (as in the case of Bajaj Auto and LML);
A third form - that is, the 100% owned subsidiary route - found favor in the early 2000s.
A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the alliances
Besides the below mentioned technology alliances, Suzuki Motor Corporation has also
followed the strategy of joint ventures (SMC reportedly acquired equity stake in Integra
46
Technological tie- Tokya R&D Co Ltd, Two-
up Japan wheelers
Technological tie- Kubota Corp, Japan Diesel
up Engines
HHML Joint Venture Honda Motor Co, Japan Motorcycle
s
Tie up for Italjet, Italy Scooters
KEL manufacturing
and distribution
LML Technological tie- Daelim Motor Co Ltd Motorcycle
up s
Hero Motors Technological tie- Aprilia of Italy Scooters
up
With the two-wheeler market, especially the motorcycle market, becoming extremely
competitive and the life cycle of products getting shorter, the ability to offer new models to
meet fast changing customer preferences has become imperative. In this context, the ability to
deliver newer products calls for sound technological backing and this has become one of the
critical differentiating factors among companies in the domestic market. Thus, the players
have increased their focus on research and development with some having indigenously
developed new models as well as improved technologies to cater to the domestic market.
Further, with exports being one of the thrust areas for some Indian two-wheeler companies,
the Indian original equipment manufacturers (OEMs) have realized the need to upgrade
their technical capabilities. These relate to three main areas: fuel economy, environmental
compliance, and performance. In India, because of the cost-sensitive nature of the market,
It is not only that the OEMs are increasing their focus on in-house R&D; they also ances.
47
INCREASING FOCUS ON EXPORTS:
For the first nine months of FY2007, two-wheeler exports increased by 37% over the
were healthy. While motorcycle exports increased by 40%, scooter and moped exports
Motorcycle exports by Bajaj Auto, HHML and TVS have reported a robust growth in
Although the Indian two-wheeler manufacturers have forayed on their own in their target
export markets, there have been instances of tie-ups with the technology partners. Bajaj
Philippines is a case in point. Under the tie-up, M/s Kawasaki Motors Philippines
Corporation has been appointed as exclusive distributors to market select Bajaj two-
wheelers that include Byk, Caliber 115 and Wind 125. These vehicles are being sent to
Philippines in the completely built unit (CBU) form. Other strategy of expanding
select South East Asian countries either on their own or in partnership with local players.
Besides, plans of select overseas technology partners to source from their Indian partners
and plans of global majors to develop their Indian manufacturing unit as a sourcing hub
48
SCOPE OF STUDY
The research was carried out to find factors which influence customer satisfaction level to
maximum level. The study projects that customer satisfaction level change with change in
various factors like during sales evaluation, during delivery of the vehicle and after
manufacturer Yamaha Motors India Ltd. so that they can bring about changes in various
For instance during research factors such as technology, maintenance, looks, style, brand
image, behavior of dealers, timely delivery of documents and bike and proper
This research would give necessary details to Yamaha motors so that it could know the
various factors that affect customer satisfaction level and then initiate appropriate
49
CHAPTER 4
RESEARCH
METHODOLOGY
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RESEARCH PROBLEM AND OBJECTIVE:
activity and as such it is used in a technical sense. According to Clifford Woody, research
solutions, collecting, organizing and evaluating data, making deductions and research
Primary Objective:
The research encompasses the primary objective of comparison and analysis of Yamaha
bikes with respect to other brands prevailing in the market i.e. , Hero Honda ,Honda ,
Yamahas bikes and to find out the areas in which it needs to improve to develop a better
perception in the mind of its customers. It entails as to suggest Yamaha how to become a
Secondary objective:
customers using different bike brands; the various areas where competitors supersede and
the areas where the competitors lack. Furthermore the research aims to find out the
relative market capitalization of Yamaha in the two wheeler industry and to suggest some
concrete and absolute measures to give a rise to its share in the two wheeler segment.
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Research Process
Extensive Literature Survey: Before starting the research in-depth study of the topic
was done to form a clear picture of what and how research is to be done.
Formulating the Research Problem: The next step was to find out the problem of
the case. Then the problem was understood thoroughly and rephrasing the same into
meaningful terms from analytical point of view. This step is of greatest importance in the
entire research.
questionnaire is of structured type. Most of the questions were based on 5 point bipolar
Likert Scale.
Determining the Sample Size: Next step is to determine the number of to be targeted
from various ages, monthly salary, and gender. So a total of 200 people were surveyed.
Collecting the data: The data was collected from various class of people based on
Analysis of Data: The data collected from various people was segregated into various
categories in order to analyze it. Analysis was done based on more than 22 different
parameters.
Generalization and Interpretation: Data was tested and upheld several times, and
Preparation for the report: Lastly report about the research is made.
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Research Design:
Focus Group
Collection of Data:
Qualitative Data
Survey
questionnaires
Sampling:
Non-Probability Sampling
Judgmental Sampling
Simple Random
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Sample Design:
Sampling may be defined as the selection of the some part of an aggregate or totality on
the basis of which a judgment or interference about the aggregate or totality is made. It is
the process of obtaining information about entire population by examining only a part of
it in which generalizations or influences are drawn based on the sample about the
Sample Size: A total of 100 people have been questioned for the purpose of filling up the
questionnaire.
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SWOT ANALYSIS
Strengths:
Yamaha Motor products extend from land to sea and even into the skies, with
manufacturing and business operations that include everything from motorcycles, PSA
The distribution network of Yamaha Motors is very wide and spread across the
country.
Has great brand name and commands lot of respect among bikers community.
Weakness:
Yamahas strategy for Indian market was on right alleyway, but somewhere down the
lane, they are still relying on conventional model which no longer in use.
Yamaha despite the promise has failed to deliver and is still an underdog in the race to
top.
A series of unsuccessful and flop bikes have eroded the legacy of RX100 and RD350.
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Opportunities:
The motorcycle market has been growing at a phenomenal rate and there has been a
shift in the consumer preferences from 2 stroke bikes. Yamaha motors have recognized
this and are bringing out new models of 4 stroke bikes quite regularly to cater the needs
of the customers.
Consumers have become technology conscious and Yamaha Motors have best R&D
facilities. So they can tap new costumers with innovative technology in motorcycle
There lies lot of potential in 150cc and above segment and Yamaha has not made
Threats:
Continuous divisions of customer segment have made conventional bikes which was
Bajaj Auto and TVS have taken large part of the market share from Yamaha.
Growing competition in the industry, both in the terms of new models and price
undercutting, too is a matter of concern as both the sales realization and operation
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CHAPTER 5
DATA COLLECTION
AND INTERPRETATION
57
DATA COLLECTION AND INTERPRETATION
The research required collection of first hand primary data from the respondents . the
respondents necessarily were to be bike users . They were exposed to a questionnaire
containing different parameters for the evaluation of their satisfaction level . the broad
parameters were :
It was expected that the respondents were honest while answering the questions with
proper consideration of the brand image of the bike they were currently using . the
questionnaire contained likert scaling to rate various parameters .
The respondents were so selected that they were representative of various segments of
bike users . the respondents were questioned on :
Petrol pumps
Service stations
Educational institutes
Vehicle showrooms
Malls
Residential areas , and
Factories
The results and responses were recorded on a SPSS data viewer (Statistical Package for
Social Sciences) parameters were defined on a SPSS variable viewer . the next step was
to run the SPSS and acquire specific results pertaining to the research done .
The findings and analysis complementing to results are discussed in the chapters to follow .
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CHAPTER 6
GRAPHICAL DATA
ANALYSIS
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DATA ANALYSIS
The data analysis portion is the backbone of any primary or secondary research. There are
various tools of data analysis that helps the researcher to interpret his data into final
results . the data collected in this research was analyzed using the most effective tool of
market research i.e., SPSS (statistical package for social sciences) The parameters were
set up giving preference to non demographic factors more than demographic factors. the
i. customers age
ii. marital status
iii. profession
iv. education
v. attitude of dealer
vi. explanation of product features by the dealer .
vii. sales terms and conditions
viii. product display in the showroom
ix. cleaniness in showroom and service station
x. atmosphere
xi. cleanliness of purchased bike
xii. time taken in delivery
xiii. explanation of bike functions
xiv. PDI and checks made
xv. Time taken in documentation
xvi. Salesman follow up
xvii. Reminder of first service
xviii. Action to complains
xix. Replacement condition
xx.
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GRAPHICAL DATA INTERPRETATION
Interpretation:
65% age group of 18-25 preferred a motor bike, 20% of age group 25-35, 10% of age
group of 35-45 and the rest of age group above 45 years old.
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Student 45%
Service 40%
Business 5%
Self Employed 5%
Others 5%
Interpretation:
Occupationally and professional the motor bike has been used i.e. 45% preferred by
student, in the service level it is used 40% and the rest of used in business, self employed
3. How do income wise customer show their interest towards motor bike ?
10000-15000 35%
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15000-20000 40%
20000-50000 15%
50000-100000 5%
Interpretation:
In the base of economically, it is used in the base of income i.e. 35% of income group
Hero 40%
Bajaj 45%
Yamaha 10%
TVS 3%
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Honda 2%
Interpretation:
40% motor Bike Company and its models liked by people of Hero Honda, second
position of Bajaj and third position of Yamaha and rest of TVS and other companies.
5. Which features of a bike customer would like to prefer most while purchasing?
Speed 40%
Power/BHP 5%
Mileage 30%
Design 5%
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Brand 5%
Pick up 2%
Color 5%
Comfort 8%
Interpretation:
65% age group of 18-25 preferred a motor bike, 20% of age group 25-35, 10% of age
group of 35-45 and the rest of age group above 45 years old.
TV 35%
Newspaper 15%
Friend 12%
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Family 8%
Test Ride 2%
Internet 10%
Hoarding 8%
Interpretation:
The aware and know about motor bike products about 35% by TV channels, 15%
newspapers / magazines, 12% by friends, 10% by product show, 10% through internet,
Design 5%
Publicity 14%
Scheme 0%
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Gift 1%
Interpretation : The bike has purchased according to brand value, design, publicity and
others base. The common factor, in the present firstly brand value is the main factor i.e.
80% people has been purchased any motor bike and 14% has been purchased having the
Good 20%
Excellent 75%
Satisfactory 5%
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Not Good 0%
Interpretation:
In the most preferred through experience i.e. the good, and excellence and
satisfactory based. In the survey it has been found that 75% excellence and 20% has been
telling about with good theme.
Showroom 95%
Road Mechanic 5%
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Interpretation:
The main important thing that the motor bike servicing factors where it will be better
do for that. 95% Customers attitude towards servicing of motor bike in showroom and
10. Do customers get full value of money for the bike they purchased ?
Yes 100%
No 0%
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Interpretation:
1 100% customers attitude has been found towards full value money has taken over all
the products.
YES 45 90%
NO 5 10%
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12. Which company bike do you have at present ?
HONDA 26 52%
71
BAJAJ 14 28%
NEWSPAPER 5 10%
FRIENDS 32 64%
72
TV ADVERTISEMENTS 9 18%
OTHER 4 8%
14. Who is the decision maker for purchasing bike in your family ?
FATHER 11 22%
MOTHER 5 10%
SELF 34 68%
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OTHER 0 0
BY CASH 30 60%
BY LOAN 20 40%
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16. For which purpose you use bike ?
OFFICE 16 32%
TRAVELLING 12 24%
BOTH 19 38%
OTHERS 3 6%
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17. Why did you prefer this brand over other brand ?
QUALITY 17 34%
FEATURES 11 22%
AVAILABILITY 8 16%
PRICE 14 28%
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18. Will you prefer another bike if price is reduced ?
YES 35 70%
NO 15 30%
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19. Which type of bike you prefer for travelling ?
100 cc 21 42%
150 cc 13 26%
125 cc 11 22%
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20. Do you think advertisement create more awareness of bikes ?
YES 33 66%
NO 8 16%
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CHAPTER 7
FINDINGS OF RESERCH
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BRANDS Hero Bajaj Honda TVS Suzuki Yamaha
PARAMETERS
Gender Male Male Male Male Male Male
Marital status Unmarried Unmarried Unmarried Unmarried Married Unmarried
Profession Salaried Salaried Salaried Salaried Salaried Salaried
Age 21-25 21-25 21-25 21-25 21-25 26-30
Education Graduate Graduate Graduate Graduate Graduate Graduate
Dealers attitude Good Good Good Good Good Good
Explanation of Good Good Good Good Average Average
Of product
feature
Sales terms and Very Good Good Good Average Good Average
Condition
Product display Good Good Good Good Good Good
Cleanliness Good Good Good Good Good Good
Atmosphere Good Good Good Good Average Good
Cleanliness of Good Good Good Good Good Good
purchased
Bike
Timely delivery Very Good Good Very Good Good Good
of bike Good
Explanation of Good Good Good Average Average Good
bike
Function
PDI and Check Good Good Good Good Average Average
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Time taken in Good Good Good Good Average Good
Documentation
Salesman Average Average Good Average Average Good
follow up
Remainder of Good Poor Average Poor Average Good
first service
Prompt action Good Good Good Good Average Good
to complaints
Replacement Might or Might or Probably Might or Might or Might
might not might not Buy might not might not or might
buy buy buy buy not buy
The chart represents the analysis of the covered brands on the basis of different
parameters
Interpretation:
1. Out of the six brands covered the respondents of Suzuki are generally married while
other brands have unmarried customers.
2. The average age of a Yamaha customer comes out to be 26-30 years as compared to
others brands average customers age which is 21-25 years.
3. When explanation of product features comes into view; only Yamaha customers rank
them average; others says its good.
4. Hero Honda and Honda are most favored brands when timely delivery of bike comes
into picture.
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5. Suzuki customers says that they have to run after their dealers for the documentation
of the delivery done while others say they are satisfied.
7. The most important point that comes up after analysis is that almost every brand of
customer wants a change but Yamaha customers are generally loyal to their brand.
To conclude it can be said that almost every brand lacks in terms of sales follow up. So
this is the area where Yamaha can focus and position its bikes.
Secondly, there is huge market for bikes because almost every bike user wants to
change its bike because of some or the other reason.
Lastly, Yamaha has a good market image but a minimum number of users are new.
The most raring point is that Yamaha in spite of having a low market share is able to
retain most of its customers.
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CHAPTER 8
GAPS IN LITERATURE
GAPS IN LITERATURE
Average age 26-30 years. the average age of Yamaha bike users was assumed to be
21-25 years . but from the survey it was found that the average age of Yamaha bike users
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Profession Salaried; Young executives . before research students and young
executives were considered to be the main customer of Yamaha.but our research has
From the research it can be easily inferred that the Yamaha customers are the most
loyal customers as maximum number of Yamaha bike users are those who have already
used Yamaha bikes . while the number of new customers are much less than that of other
brands.
Competitive advantage -
Speed
Power
Pick-up
BHP
85
CHAPTER 9
SCOPE OF FURTHER
RESEARCH
wheeler industry after the execution of this research . still the research can not be
considered as totally exhaustive . there are various areas that are beyond the scope of this
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research . this arises the need and scope of further research in this area . some of the
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CHAPTER 11
CONCLUSION
CONCLUSION
From the research following facts about Indian two wheeler industry has been inferred:
Age group
21-35 years
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Profession
Mostly salaried
Customers are generally satisfied with attitude of dealers at the time of sales.
Every brand of bikes have a poor response in terms of sales follow up.
Hunk
Pulsar
Apache
In fact, the dealership of Lucknow is found good and trhe customers are satisfied
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CHAPTER 10
PROBLEM
IDENTIFICATION
PROBLEMS IN YAMAHA
Yamaha bikes have a poor mileage it needs to create a positive image in the mind of
its customers .
90
They lack style and innovation.
Yamaha has lost trust among Indian consumers by producing bikes like YBX, Fazer
and Libero.
Dearer accessories.
Yamaha has no vulnerable bike to compete with high mileage bikes of TVS and
Hero Honda.
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CHAPTER 12
SUGGESTIONS
92
SUGGESTIONS
2. BIKE IN 150 CC SEGMENT Yamaha does not has any successful bike in this
segments. Yamaha needs to introduce a bike in this segment which can compete with
the other brands on price, power, pick-up , mileage and style .
4. It has been found from the research that Yamaha has got the most loyal customers but
when it comes to Yamaha, people still talk about RX- 100. Yamaha should develop a
bike like RX-100, and this time mileage and style should also be considered.
5. 360 degree marketing approach and need to follow aggressive promotional campaigns
to grab a larger piece of pie in the motorcycle segment.
6. Focus should be on teenagers, young and executives as they represent largest portion
of the bike user segment.
7. Provide better sales follow up which almost every brand lacks the research has
showed that the bike users of all brands are dissatisfied with their after sales
experience .this is a big loop hole which yamaha can use to improve its brand image
and to gain more customers.
8. Indian customers generally do not use bike for fashion but as a necessity so mileage
should be a concern, so it needs to create a better image in the mind of its customers
regarding mileage.
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CHAPTER 13
LIMITATIONS
94
LIMITATIONS
3. Since it is limited only to two wheeler motorcycle industry so the entire customer
satisfaction level while and after purchasing a product cannot be projected on this
research.
4. Sometimes it was very difficult to get the necessary information as filling the
5. Research could have been wider in scope if along with customer satisfaction level
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CHAPTER 14
ANNEXURE
96
QUESTIONER
3. How do income wise customers show their interest towards motor bike?
5. Which features of a bike customer would like to prefer most while purchasing ?
97
8. How was your experience after using the bike?
10. Do customers get full value of money for the bike they purchased ?
a. Yes b. No
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(A) Yes [ ] (B) No [ ]
19. Which type of bike you prefer for travelling?
(A) 100cc [ ] (B) 150cc [ ]
(C) 125cc [ ] (D) More than 150cc [ ]
20. Do you think advertisements create more awareness of bikes?
(A) Yes [ ] (B) No [ ]
(C) Cant say [ ]
BOOKS
Kotler Philip, Keller Lane Kvin Marketing management 12th edition Pearson
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WEBSITES
www.indianauto.com
www.yamaha-motors-india.com
www.bikes.com
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