AN ORGANIZATIONAL STUDY ON YAMAHA

MOTOR CO., LIMITED.

SUMMER TRAINING REPORT

Submitted by

S.DHANA PRASATH

20MBR008

In partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

In

DEPARTMENT OF MANAGEMENT STUDIES

VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY

(Autonomous)

ERODE - 638012

OCTOBER– 2021

i
 VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY,
(AUTONOMOUS)

ERODE - 638 012

Department of Management Studies

SUMMER TRAINING REPORT

OCTOBER- 2021

This is to certify that the Summer Training entitled

An Organizational Study on YAMAHAA MOTOR CO., LIMITED

Is the bonafide record of Summer Training Report done by

S.DHANA PRASATH

20MBR008

Of MBA during the year 2021 - 2022.

Summer Training Guide Head of the Department

Dr.D.MUTHUKRISHNAVENI, Dr.T.VETRIVEL,

Professor Professor & Head

Department of MBA Department of MBA

Submitted for the Summer Training Viva-Voce examination held on .

Internal Examiner

ii
 DECLARATION

I affirm that the Summer Training work titled “AN ORGANIZATIONAL STUDY
YAMAHA MOTORS CO., LIMITED” being submitted in partial fulfillment for the award
of Master of Business Administration is the original work carried out by me. It has not formed
the part of any other Summer Training work submitted for award of any Degree or Diploma,
either in this or any other University.

DHANA PRASATH.S

20MBR008

I certify that the declaration made above by the candidate is true.

Dr.D.MUTHUKRISHNAVENI, MBA, M.Phil., Ph.D.

Professor, Department of MBA

iii
 ACKNOWLEDGEMENT

I feel a great pleasure to thank our Vellalar Education Trust, Secretary and
Correspondent Thiru.S.D.CHANDRASEKAR, B.A., for offering me a opportunity to do this
Summer Training.

I would like to express my deep sense of gratitude to our esteemed Principal

Dr.M.JAYARAMAN, M.E, Ph.D, MISTE., and Prof. P.JAYACHANDAR Dean of Velalar
College of Engineering and Technology, Erode for providing me with the great opportunity to
undergo this Summer Training work.

At the outset I am grateful to Dr.T.VETRIVEL, B.Sc., MBA, M.Phil., MISTE.,

PGDCA., Ph.D, Professor & Head, Department of Management Studies for his Constant
encouragement and support to complete the Summer Training Report.

At the outset I am grateful to my Guide Dr.D.MUTHUKRISHNAVENI, M.B.A.,

M.Phil., Ph.D. Professor, Department of Management Studies for her proper guidance and
support rendered for successfully completing the Summer Training work.

I would like to extend my sincere thanks to all the Faculty Members of Department
of Management Studies, Velalar College of Engineering and Technology, Erode for their
constant encouragement and support for this Summer Training Report.

I thank the Almighty God and my beloved Parents for the blessings and my Friends
that have been showered upon me to complete the Summer Training successfully.

DHANA PRASATH.S

iv
 TABLE OF
CONTENT

Chapter No. Particulars Page No.

Introduction 6
1
Industry Profile 11
2
Company Profile and Organization Chart 17
3
Purchase Department 22
4
Production Department 24
5
6 Human Resource Department 25

7 Logistics Department 27

8 Quality Assurance Department 29

9 Marketing Department 32
10 Materials Department 38
11 Finance Department 40
12 Systems Department 42
13 Research and Development Department 45
14 Sales Department 50
15
SWOT Analysis 55
16
Findings & Suggestions 62
17
Conclusion 65
Bibliography 54

v
 CHAPTER-1

INTRODUCTION

Paving the Road to Yamaha Motor Corporation “I want to carry out trial manufacture of
motorcycle engines." It was from these words spoken by Genichi Kawakami Yamaha Motor's
first president) in 1953, that today's Yamaha Motor Company was born. “If you're going to do
something, be the best”.

Genichi Kawakami

Genichi Kawakami was the first son of Kaichi Kawakami, the third-generation president of
Nippon Gakki (musical instruments and electronics; presently Yamaha Corporation).
Genichi studied and graduated from Takachiho Higher Commercial School in March of 1934.
In July of 1937, he was the second Kawakami to join the Nippon Gakki Company. He quickly
rose to positions of manager of the company's Tenryu Factory Company (musical
instruments) and then Senior General Manager, before assuming the position of
fourthgeneration President in 1950 at the young age of 38.

In 1953, Genichi was looking for a way to make use of idle machining equipment that
had previously been used to make aircraft propellers. Looking back on the founding of Yamaha
Motor Company, Genichi had this to say "While the company was performing well and had
some financial leeway, I felt the need to look for our next area of business. So, I did some
research." He explored producing many products, including sewing machines, auto parts,
scooters, three-wheeled utility vehicles, and motorcycles. Market and competitive factors led
him to focus on the motorcycle market. Genichi actually visited the United States many times
during this period.
When asked about this decision, he said, "I had my research division chief and other
managers visit leading motorcycle factories around the country. They came back and told me
there was still plenty of opportunity, even if we were entering the market late. I didn't want

1
to be completely unprepared in this unfamiliar business so we toured to German factories
before setting out to build our first 125cc bike. I joined in this tour around Europe during which
my chief engineers learned how to build motorbikes. We did as much research as possible to
ensure that we could build a bike as good as any out there. Once we had that confidence, we
started going."

"If you are going to make it, make it the very best there is." With these words as their
motto, the development team poured all their energies into building the first prototype, and
ten months later in August of 1954 the first model was complete. It was the Yamaha YA-1. The
bike was powered by an air-cooled, 2-stroke, single cylinder 125cc engine. Once finished, it
was put through an unprecedented 10,000 km endurance test to ensure that its quality was
top-class. This was destined to be the first crystallization of what has now become a long
tradition of Yamaha creativity and an inexhaustible spirit of challenge.

The first Yamaha motorcycle... the YA-1 Then, in January of 1955 the Hamakita Factory
of Nippon Gakki was built and production began on the YA-1. With confidence in the new
direction that Genichi was taking, Yamaha Motor Co. Ltd. was founded on July 1, 1955. Staffed
by 274 enthusiastic employees, the new motorcycle manufacturer built about 200 units per
month.

That same year, Yamaha entered its new YA-1 in the two biggest race events in Japan.
They were the 3rd Mt. Fuji Ascent Race and the 1st Asama Highlands Race. In these debut
races Yamaha won the 125cc class and the following year the YA-1 won again in both the

Light and Ultra-light classes of the Asama Highlands Race.

By 1956, a second model was ready for production. This was the YC1, a 175cc single
cylinder two-stroke. In 1957 Yamaha began production of its first 250cc, two-stroke twin, the
YD1.

"If you are going to make it, make it the very best there is." With these words as their
motto, the development team poured all their energies into building the first prototype, and

2
ten months later in August of 1954 the first model was complete. It was the Yamaha YA-1. The
bike was powered by an air-cooled, 2-stroke, single cylinder 125cc engine. Once finished, it
was put through an unprecedented 10,000 km endurance test to ensure that its quality was
top-class. This was destined to be the first crystallization of what has now become a long
tradition of Yamaha creativity and an inexhaustible spirit of challenge.

The first Yamaha to compete in America (1957). Yamaha took quick action using the
momentum gained in the USA and began marketing their motorcycles through an
independent distributor in California. In 1958, Cooper Motors began selling the YD-1 250 and
the MF-1 (50cc, two-stroke, single cylinder, step through street bike). Then in 1960, Yamaha
International Corporation began selling motorcycles in the USA through dealers.

With the overseas experiences under his belt, in 1960, Genichi then turned his attention
to the Marine industry and the production of the first Yamaha boats and outboard motors.
This was the beginning of an aggressive expansion into new fields utilizing the new engines
and FRP (fiberglass reinforced plastic) technologies. The first watercraft model was the CAT-
21, followed by the RUN-13 and the P-7 123cc outboard motor.

In 1963, Yamaha demonstrated its focus on cutting-edge, technological innovations by

developing the Auto lube System. This landmark solution was a separate oil injection system
for two-stroke models, eliminating the inconvenience of pre-mixing fuel and oil.
Yamaha was building a strong reputation as a superior manufacturer which was
reflected in its first project carried out in the new Iwata, Japan Plant, built in 1966. (The YMC
headquarters was moved to Iwata in 1972.) Toyota and Yamaha teamed up to produce the
highly regarded Toyota 2000 GT sports car. This very limited-edition vehicle, still admired for
its performance and craftsmanship, created a sensation among enthusiast in Japan and
abroad.

Genichi said, "I believe that the most important thing when building a product is to
always keep in mind the standpoint of the people who will use it." An example of the

3
commitment to "walking in the customers' shoes" was the move in 1966 by Yamaha to
continue its expansion. Overseas motorcycle manufacturing was established in Thailand and
Mexico. In 1968, the globalization continued with Brazil and the Netherlands. With
manufacturing bases, distributors and R&D operations in a market, Yamaha could be involved
in grassroots efforts to build products that truly met the needs of each market by respecting
and valuing the distinct national sensibilities and customs of each country. Yamaha continues
that tradition, today.

By the late 1960s, Yamaha had quality products that had proven themselves in the global
marketplace based on superior performance and innovation. Distribution and product
diversity were on the right track. But Genichi knew that beyond quality, success would
demand more. He had this view on the power of original ideas. "In the future, a company's
future will hinge on ideas over and above quality. Products that have no character, nothing
unique about them, will not sell no matter how well made or affordable and that would spell
doom for any company."

They also knew that forward vision, walking hand in hand with original ideas, would
create an opportunity for the company and its customers that could mean years of happiness
and memorable experiences. Genichi said, "In the business world today, so many people are
obsessed with figures. They become fixated on the numbers of the minute and without them
are too afraid to do any real work. But in fact, every situation is in flux from moment to
moment, developing with a natural flow. Unless one reads that flow, it is impossible to start
out in a new field of business. "A real-world illustration of this belief is the Yamaha DT-1. The
world's first true off-road motorcycle debuted in 1968 to create an entirely new genre we
know today as trail bikes. The DT-1 made a huge impact on motorcycling in the USA because
it was truly dirt worthy. Yamaha definitely "read the flow" when it produced the 250cc, single
cylinder, 2-stroke, endure that put Yamaha on/Off-Road motorcycles on the map in the USA.
The DT-1 exemplified the power of original ideas, forward vision, and quick action coupled
with keeping in mind the customers' desires.

4
 In years to come Yamaha continued to grow (and continues to this day). Diversity
increased with the addition of products including snowmobiles, race kart engines, generators,
scooters, ATV's, personal watercraft and more. Genichi Kawakami set the stage for Yamaha
Motor Company's success with his vision and philosophies. Total honesty towards the
customer and making products that hold their own enables the company that serves people
in thirty-three countries, to provide an improved lifestyle through exceptional quality, high
performance products.

Genichi Kawakami's history with Yamaha was long and rich. He saw the new corporate
headquarters in Cypress, California and the 25th Anniversary of Yamaha become a reality in
1980. He also watched bike #20 million roll off the assembly line in 1982. Genichi passed away
on May 25, 2002 yet his vision lives on through the people and products of Yamaha,
throughout the world.

5
 CHAPTER-2
INDUSTRY PROFILE

2.1 Beginnings: 1955

The motorcycle division of Yamaha was founded in 1955, and was headed by Genichi
Kawakami. Yamaha's initial product was a 125 cc (7.6 cu in) two-cycle, single cylinder
motorcycle, the YA-1, which was a copy oSf the German DKW RT 125. The YA-1 was a

competitive success at racing from the beginning, winning not only the 125cc class in the Mt. Fuji
Ascent, but also sweeping the podium with first, second and third place in the All Japan

Auto bike Endurance Road Race that same year. Early success in racing set the tone for
Yamaha, as competition in many varieties of motorcycle racing has been a key endeavour of
the company throughout its history, often by a strong rivalry with Honda, Suzuki, Kawasaki
and other Japanese manufacturers.

Yamaha began competing internationally in 1956 when they entered the Catalina

Grand Prix, again with the YA-1, at which they placed sixth. The YA-1 was followed by the YA-
2 of 1957, another 125cc two stroke, but with significantly improved frame and suspension.
The YD-1 of 1957 was a 250cc two-stroke twin cylinder motorcycle, resembling the YA-2, but
with a larger and more powerful motor. A performance version of this bike, the YDS-1 housed
the 250cc two-stroke twin in a double downtube cradle frame and offered the first five-speed
transmission in a Japanese motorcycle. This period also saw Yamaha offer its first outboard
marine engine.

Yamaha Motor Company was incorporated on 1st July 1955 (Japan), highlighting its
presence in performance segment motorcycles. This year 2020 we will be completing 65 years

6
& to celebrate this momentous occasion YAMAHA will be conducting the 65th Yamaha Day on
1st July. This year has been selected as “Heritage” theme for Yamaha Day – with this

YAMAHA plans to enhance the brand connect with their customers.

2.2 Success and growth in the 1960s

By 1963 Yamaha's dedication to both the two-stroke engine and racing paid off with
their first victory in international competition, at the Belgium GP, where they won the 250cc
class. Success in sales was even more impressive, and Yamaha set up the first of its
international subsidiaries in this period beginning with Thailand in 1964, and the Netherlands
in 1968. 1965 saw the release of a 305cc two-stroke twin, the flagship of the company's line-
up. It featured a separate oil supply which directly injected oil into the gasoline prior to
combustion (traditionally riders had to pre-mix oil into gasoline together before filling the gas
tank on two stroke engines). In 1967 a new larger displacement model was added to the range,
the 350cc two stroke twin R-1.

In 1968 Yamaha launched their first four-stroke motorcycle, the XS-1. The Yamaha XS1
was a 650cc four-stroke twin, a larger and more powerful machine that equalled the
displacement and performance of the popular British bikes of the era, such as the Triumph
Bonneville and BSA Gold Star. Yamaha continued on with both the two-stroke line and
fourstroke twins at a time that other Japanese manufacturers were increasingly moving to
four cylinder four-stroke machines, a trend led by Honda in 1969 with the legendary CB-750
fourstroke four-cylinder cycle.

2.3 Four stroke era begins: the 1970s

Not until 1976 would Yamaha answer the other Japanese brands with a multi-cylinder
four stroke of their own. The XS-750 (and later 850) a 750cc triple cylinder machine with shaft
final drive was introduced almost seven years after Honda's breakthrough bike. Yamaha's first
four-cylinder model, the XS-1100 followed in 1978, again with shaft drive.

7
Despite being heavier and more touring oriented than its rivals it produced an impressive string
of victories in endurance racing.

The 1970s also saw some of the first dedicated off-road bikes for off-road racing and
recreation. Yamaha was an early innovator in dirt-bike technology, and introduced the first
single-shock rear suspension, the trademarked "Mainshock" of 1973. It appeared in
production on the 1974 Yamaha YZ-250, a model which is still in production, making it
Yamaha's longest continuous model and name.

Yamaha continued racing throughout the 1960s and 1970s with increasing success in
several formats. The decade of the 1970s was capped by the XT500 winning the first
ParisDakar rally in 1979.

2.4 1980s: diversification and innovation

By 1980 the combination of consumer preference and environmental regulation made

four strokes increasingly popular. Suzuki ended production of their GT two stroke series,
including the flagship water-cooled two-stroke 750cc GT-750 in 1977. Kawasaki, who had
considerable success throughout the 1970s with their two-stroke triples of 250cc, 350cc, 500cc
and 750cc ended production of road-going two strokes in 1980. Yamaha bucked this trend and
continued to refine and sell two-strokes for the street into the 1980s. These bikes were
performance oriented, water-cooled twin cylinder machines, designed to achieve excellent
performance taking advantage of the lower weight of two strokes. The RZ-250 of 1980 was the
progenitor of this series. The RZ-350, the largest displacement model, was a popular hot-rod
bike of the 1980s and continued to be sold in some countries into the early

1990s.
Throughout the 1980s the motorcycle industry gradually went from building a few basic
but versatile models designed to work well in many roles, to offering many more specialized

8
machines designed to excel in particular niches. These included racing and performance street
riding, touring, motocross racing, endure and recreational off-road riding, and cruising.
Yamaha branched out from the relatively small number of UJMs (Universal Japanese
Motorcycle) at the start of the decade to a much larger set of offerings in several clearly
defined markets at the end of the decade.

The XV750 of 1981 featured an air-cooled V-twin four-stroke engine and cruiser styling,
and was one of the first Japanese cruiser style motorcycles. By the end of the 1980s Yamaha
had offered dozens of cruisers styled bikes in a variety of displacements and engine

configurations.

The RZV500 was one of the first "repli-racers", a near copy of Kenny Roberts competition
GP bike, it featured a liquid-cooled two-stroke motor of 500cc displacement in a V4
configuration, along with a perimeter frame and full fairing.

A more popular and practical high-performance model for the street was introduced in
1985, the FZ750. It was an innovative 750cc four-stroke inline four-cylinder model. It was the
first motorcycle to feature a five-valve cylinder head, something Yamaha became well known
for. It also featured a cylinder block canted forward at 45 degrees, and a box-section steel
perimeter frame. Production of the FZ continued until 1991.

Another bike that was performance-oriented was the Yamaha RX-Z introduced in 1985
as a two-stroke naked sport bike, related to the Yamaha RX-135 and Yamaha RD-135,
borrowing its chassis and platform. Originally equipped with a five-speed transmission and a
solid front disc brake rotor with rear drum brakes, it was popular in Malaysia and Singapore.

9
After a few years on the market, the engine was upgraded with the installation of a sixspeed
transmission, together with a newer instrument panel and handlebar switches, as well as a
cross-drilled front disc brake rotor, while the rear remained with the drum brakes. The design
was unchanged until it was updated in 2004, with the rear lights being borrowed by the
Yamaha Y125Z and a new headlight. It was also installed with a catalytic converter, which
reduced its horsepower to 19bhp. However, the maximum torque remained unchanged but
the low-end torque was improved compared to the early models. Some owners of the earlier
RX-Z motorcycles may have problems during take-off because the engine tends to stall when
an inexperienced rider tries to take off in the first gear. However, the problem was resolved
in the new model. In Malaysia, this bike was associated with street racers and was featured in
many Malay movies. In 2011, after 26 years, it was

discontinued.

2.5 The 1990s: Performance bikes and a spin-off brand

In 1998 Yamaha marketed a 1000cc four-cylinder road bike called the YZF 'R1', this
model introduced a new style of gearbox design which shortened the overall length of the
motor/gearbox case, to allow a more compact unit. This, in turn allowed the motor to be
placed in the frame further forward, designed to improve handling in a short wheel-based
frame.

In 1995, Yamaha announced the creation of star motorcycle, a new brand name for its cruiser
series of motorcycles in the American market. In other markets, Star motorcycles are still sold
under the Yamaha brand. This was an attempt to create a brand identity more closely aligned
with the cruiser market segment, one of the largest and most lucrative in the

USA.
2.6 The 2000s: Expansion and consolidation

10
 In 2007, Yamaha established the Philippine operations and distributes Yamaha

motorcycles under the corporate name of Yamaha Motor Philippines, Inc., one of more than 20
worldwide subsidiaries operating on all continent.

11
 CHAPTER-3

COMPANY PROFILE

3.1 Origin of company

Yamaha Motor made its initial foray into India in 1985 as a joint-venture. In August 2001, it
became a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co.

Ltd. entered into an agreement with YMC to become a joint-investor in India Yamaha Motor
Private Limited (IYM).

IYM's manufacturing facilities comprise of 3 State-of-the-art Plants at Surajpur (Uttar

Pradesh), Faridabad (Haryana) and Kanchipuram (Tamil Nadu). The infrastructure at these
plants supports production of two-wheelers and parts for the domestic as well as overseas
markets.

IYM is highly customer-driven and has a country-wide network of over 2,200 customer
touch-points including 500 dealers. Presently, its product portfolio includes Sports models
such as Blue-Core Technology enabled models such as Sports model YZF-R15 version 3.0

(155 cc), FZS 250 CC, FZ 250 CC, MT-15 (Fuel-Injected 155cc), FZ-S FI (Fuel-Injected, 149 cc),

FZ FI (Fuel-Injected, 149 cc), Fuel-injected 125cc Scooter Range of Ray-ZR Street Rally 125 Fi
(125 cc), Ray-ZR 125 Fi (125 cc), Fascino 125 Fi (125 cc), and the superbikes MT-09 (847 cc) and
YZF-R1 (998 cc).

Yamaha Motor India Pvt. Ltd. (YMI) is a 100% subsidiary of YMC and functions as the
regional headquarters and corporate control body of India business operations for YMC. YMI

12
is responsible for Corporate Planning & Strategy, Business Planning & Business Expansion and
Quality & Compliance Assurance of Yamaha India Business.
Yamaha Motor India Sales Pvt. Ltd. (YMIS) is a 100% subsidiary of YMC and supports IYM
to market and sell its motorcycles & scooters in domestic as well as export markets. Yamaha
Motor Research & Development India Pvt. Ltd. (YMRI) is a 100% subsidiary of YMC and has
been established by YMC to provide R&D and Product development services to IYM for its
domestic as well as export markets. YMRI is the fifth overseas R&D headquarters for Yamaha
Motor Group following Italy, Taiwan, China, and Thailand.

3.2 Company Perspectives:

Yamaha is one of the world's leading manufacturers of pianos, digital musical

instruments, and wind, string, and percussion instruments. At the same time, the Company
has grown through a broad spectrum of business activities, including electronic devices and
equipment, professional audio equipment, and audio-visual equipment.

To continue growing in the 21st century, the Yamaha Group will make a concerted effort
to become a truly global enterprise that fulfils its corporate mission of contributing to enriching
the quality of life of people worldwide.

3.3 Chronology
Key Dates:

• 1887: Company founder Torakusu Yamaha builds his first reed organ.

• 1889: Yamaha founds Yamaha Organ Manufacturing Company, Japan's first maker
of Western musical instruments.

• 1897: Company's name is changed to Nippon Gakki Co., Ltd.

• 1900: Company produces its first upright piano.

13
 • 1902: Production of grand pianos begins.

• 1930: Company opens an acoustics lab and research centre.

1948: Japan's Education Ministry mandates musical education for Japanese
children, expanding Yamaha's business.
1954: Yamaha Music Schools debut.
1955: Company produces its first motorcycle through an affiliated company,
Yamaha Motor Company, Ltd.

• 1958: First overseas subsidiary is established in Mexico.

• 1967: First concert grand piano is produced.

• 1971: Production of semiconductors begins.

• 1982: The first Disklavier pianos are produced.

• 1983: Company introduces the DX-7 digital synthesizer, a top seller.

• 1987: Company changes its name to Yamaha Corporation to celebrate the 100th
anniversary of the firm.

• 1993: The Silent Piano series debuts.

• 2000: Yamaha posts a net loss of $384 million for the fiscal year ending in March;
newly installed President Shuji Ito initiates a restructuring program.
3.4 Organizational Chart
1.Top management

➢ managing director

➢ senior vice president

➢ associate vice president

14
2. Senior Management

➢ Chief general manager

➢ General manager

➢ Deputy general manager

3. Middle Management

➢ Chief manager

➢ Manager

➢ Assistant manager

4. Operational Staff

➢ Senior superintendent

➢ Senior officer

➢ Officer
3.5 Various Departments

• Purchase Department

• Production Department

• Human Resource Department

• Logistics Department

• Quality Assurance Department

15
• Marketing Department

• Materials Department

• Finance Department

• Systems Department

• Research and Development Department

• Sales Department

16
 CHAPTER – 4

PURCHASE DEPARTMENT

4.1 Purchase department

4 major sections in purchase department:

• Part development

• Purchase planning

• Non-productive purchase

• Productive purchase

1. Part development:

• Selection of alternate vendors from existing suppliers of India Yamaha motors

(IYM) for cost reduction/capacity enhancement or quality improvement.

• Development of parts for variants of existing models/alternate sourcing/design

change of existing parts

17
2. Purchase planning:

• This section mainly deals with budgeting, forecasting, and cost control & also all
purchase relates MIS preparation & presentation to the top management

3. Non-productive purchase:

• This section mainly deals with timely ordering and procurement of all materials,
paints, chemicals, oils and lubricants, machinery spares and various other
consumables used in the plant.

4. Productive purchase:

• This section mainly deals with scheduling & procurement for all existing direct
parts as per PYMAC orders

• Spare parts procurements as per PYMAC orders

• Liaoning with finance for settlement of vendors financial issues like reconciliation/
insurance of sales tax format

18
 CHAPTER-5

PRODUCTION DEPATMENT

➢ IYM's Manufacturing facilities comprises of 3 state-of-the-art Plants at - Faridabad

(Haryana), Surajpur (Uttar Pradesh) and Kanchipuram (Tamilnadu).

➢ The infrastructure at all the plants supports production of motorcycles, scooters and its
parts for the domestic as well as overseas 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, scooters meet the
reputed International standards of excellence in every sphere.

➢ As an Environmentally sensitive organization we have the concept of

"Environmentfriendly technology" ingrained in our Corporate Philosophy. The
Company boasts of affluent Treatment plant, Rain water - Harvesting mechanism, a
motivated forestation drive. The IS0-14001 certification is on the anvil - early next year.
All our endeavour gives 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.

19
 CHAPTER-6

HUMAN RESOURSE DEPARTMENT

6.1 HR Vision

At India Yamaha Motor the HR practices are based on the core value of creating a work
culture & environment where people trust leadership, enjoy people they work with &take
pride in work. To attract talent and evolve HR system continuously and develop the Human

Capital that meets the Business Challenges at all times.

6.2 Principles

Respect and Abide by the Law of Land

All employees are expected to be responsible citizen, abide by the law of the land in their
personal life and in the course of employment

Follow the Code of Conduct & Maintain Highest Standards of Integrity

The Company has laid down code of conduct in dealing with its customers, vendors and
other stakeholders including co employees with whom they interface in the course

transacting business

EVERY EMPLOYEE WILL BE TREATED FAIRLY

Every employee will be heard properly and treated with fair for any grievance

resolution

20
6.3 Corporate Philosophy

Creating kando with products and services that exceed your expectations
For over 50 years, Yamaha Motor group has endeavored to create diverse value through
products and services since its founding.

We have worked based on three ideas which constitute our “Corporate Philosophy”.

One is our “Corporate Mission”, that is our core identity, values, purpose and visionary goals.
The second is “Management Principles” - the guiding management principles for achieving our
corporate mission.

The third is “Action Guidelines”, the guidelines each individual should follow to realize
our corporate mission. Being the “Kando creating company” is our goal to “offer new
excitement and a more fulfilling life for people all over the world”. We strive to use our
ingenuity and passion to realize peoples' dreams and always be the ones they look up to for

“the next Kando”.

21
 Chapter-7

Logistics Department

To create an environment that makes it easier for dealerships to sell and customers to
buy Yamaha motor products, Yamaha motor provides financial services (retail sales finance,
wholesale sales finance, leasing, insurance, etc..) to customers and dealerships through sales
finance subsidiaries in markets including the United States Canada Australia France Mexico
and Brazil.

Our financial services strengthen tights hey between customers and dealerships hey not
only by ourselves but also using business methods aligned with each regions business and
regulatory environment including ties up with local partners.

Centralized Logistics System (CLS) went live on 3rd April, 2006 with an objective of making
the Supply Chain Management of India Yamaha Motor (IYM) & Yamaha Motor India Sales
(YMIS) Online. The idea behind the CLS was to have real time information of Inventory, Sales
& Distribution for IYM & YMIS.

The CLS system was developed using Oracle E-Business Suite (EBS) version 11.5.8 that is
based on a single data model for all its modules & follows Internet Computing

Architecture. The EBS module incorporated in CLS includes Purchasing, Inventory & Order
Management along with India localization.

The system provides online sales & stock information for all the operational units (Plant,
DC, Depots, Area offices etc.) of IYM & YMIS span across the country which in turn is connected
through network (VSAT/ VPN/Radio Link/Broadband).

CLS has integrated the execution of various functional departments including Marketing,
Logistics & Finance through single software. CLS offers great flexibility as it has interface with
Manufacturing System (PYMAC-III), Dealer Management System (PYMIDOL), Financial System
& Service System. It also covers the export business of IYM. It has

introduced financial discipline

22
besides making standardization of process across the country. The interdependency between
the various departments has reduced considerably thereby increasing the productivity and
pace of work.

The system has provided a transparent environment in terms of operations for both IYM
& YMIS. It works by providing all valid users a fixed role & responsibility through a login process
maintaining high level security. It has provided a management tool to control and monitor the
Sales & Logistics process throughout the country besides giving a technological edge from the
competitors as the system can be accessed from anywhere in the globe via

internet.

Ever since its launch, Oracle team has worked continuously in improvising the system
besides providing the online user support in their day-to-day working.

23
 CHAPTER-8

QUALITY ASSURANCE DEPARTMENT

8.1 Quality Assurance

1. Quality Management system

2. Quality Audit

3. Quality Training

1. Quality Management System

The Yamaha Group pursues quality improvement through the implementation of a

quality management system to ensure the production of high-quality products and the

provision of high-quality services.

Groupwide quality policies and objectives as well as important quality-related measures

are deliberated on by the Quality Committee, which is chaired by a managing executive officer.
Based on these deliberations, the president will issue instructions that will be relayed to
business divisions and Group companies via the head of Yamaha Corporation’s Quality
Assurance Division. Business divisions and Group companies set their own targets based on
Groupwide quality policies and objectives. The Quality Assurance Division of Yamaha
Corporation conducts monitoring to confirm the degree to which these targets are met and to
perform quality audits (refer to the next section), and reports on these matters are issued to
the Quality Committee.

In addition, the Group Quality Management Policies & Rules state that quality-related
reports, including those pertaining to quality issues, from throughout the Group are to be
managed in a concentrated manner by the head of the Quality Assurance Division of the

Yamaha Corporation in order to strengthen Groupwide quality assurance governance.

24
ISO9001-andIATF16949-certifiedsites

IATF 16949: Acquired in one business domain

2. Quality Audit

Auditors of the Yamaha Corporation Quality Assurance Division conduct quality audits to
check whether or not the business division quality management systems and product and
service quality match the target level set by the Yamaha Group. Based on the results of these
audits, improvement requests are issued and improvements are implemented to
Companywide quality management systems. At the same time, business divisions issue
instructions to and perform audits of the factories they oversee, both inside and outside of
Japan, in pursuit of higher product quality.

In order to further improve the effectiveness of quality audits, the Yamaha Group is
implementing improvement activities targeting both quality audit results and processes.

3. Quality Training

The Yamaha Group’s human resource training programs include specialized quality
technique training as well as rank-based training with the goal of improving quality awareness

25
and quality management skills. In fiscal 2020, the Yamaha Group held quality engineering
courses, product safety risk assessment courses (R-Map), and other courses.
Furthermore, in order to eliminate risks connected with misconduct regarding quality, all
domestic Yamaha Group members took part in danger prevention training sessions that
focused on eliminating risks associated with quality-related misconduct. Going forward, the
Yamaha Group will restructure its quality assurance training programs to facilitate the
acquisition of quality-related skills by mid-level employees in the engineering field while
revising quality management training to raise quality awareness among management.

❖ At the end of the manufacturing line and assembly line quality control inspectors
undertake a visual inspection of the motorcycle and its part finishing painter finished
and feet of parts the quality control inspector also feel the motorcycles with big load
hands to detect any bumps or defects in the finish each motorcycle is tested on a
dynamometer.

❖ During the acceleration, the “dyno” tests for acceleration and braking, shifting,
wheel alignment headline and tail light alignment and function the finished product
must meet international standards for performance and safety

❖ After the dyno test, as final inspection is made of the completed motorcycle

❖ Inspectors accelerator the motorcycle from zero to 60 mph

❖ horn function and exact emissions.

26
 CHAPTER-9

MARKETING DEPARTMENT

9.1 Marketing Product Life Cycle

Why Sales Decline Sales decline during this stage of the marketing product life cycle
because: the market has become saturated, the technology has become obsolete, or the trend
creating the demand has ended. The result is that unless our product is perishable or
consumable, few customers still want or need our product. Market segmentation can enable
us to find those few customers and to out-market our competitors to get those customers’
purchases. Marketing Product Life Cycle Using Marketing Research Can Slow Decline. To
continue making enough sales to earn a profit, we need to use market research to determine:
how much you need to lower prices, which distribution outlets we should use at this stage, and
how our other products can benefit from brand marketing from our declining product. Just as
we want our child to have a long life and live well into senior years, we want our product to
extend its life through the decline stage of the marketing product life cycle. Market
segmentation can provide extended life to our product by revealing the last remnants of
customers needing the product and by discovering new uses for our product. So, we can
increase our profits through this final stage of the marketing product

life cycle.

9.2 Marketing strategies:

The Market to Win Five Step Planning Process. Key Task

❖ Pre-planning

1. Launch the Work

27
 2. Plan the Work

❖ Undertake Marketing Audit

1. Internal Business Audit

2. External Market Audit

❖ Formulate Marketing Strategy

1. Define the Key Challenges

2. Segment the Market

3. Define the Value Proposition

4. Target the Best Segments

5. Complete the Marketing Plan

6. Implement & Review

1. Pre-planning-

The pre planning by Yamaha is that they pre-prepare themselves for this declining stage
of their bikes. They already made new bikes from their own product innovations for that drastic
situation of declining and just need the right time to launch them.

2. Marketing audit/research-

They did market research in advance that their products are declining because of rising
financing cost. As they were focusing rural market and rising financing cost has affects the sales
of their products. They also research that the taste of consumers is also changed, where their
product was declining because of rising financing cost on the other side consumer are ready to
buy premium and deluxe bikes. Business for premium and deluxe bikes was increased.

28
3. Market strategy-

The market strategy Yamaha used that time they introduce their right products as per
market demand. They focus on premium bikes segment that time. The key challenge was rising
financing cost. They understand that the price will be not an issue for the premium

29
and deluxe segment customers so the rising financing cost will not affect the sales and demand
of their products and they were right.

4. Market plan-

Yamaha uses right market plan with right market audit and with their right products for
that time and got success for firm.

5. Implemented & review-

They implemented the right market plan in that declining stage of their products and in
review they got success for their brand, products and maintain their image in motor biking
industry. It is a sad fact that many marketing plans do not get implemented well. There are
many possible reasons for this but certainly poor project and change management is a key
one. If we do the pre-planning work well, there is more chance the Marketing Plan will be
accepted and implemented as Yamaha done.

9.3 Re-launch or reposition

One strategy is the re-launch and re-position mature brands. Yamaha doesn’t use this
strategy because the taste of consumers is also changed.

9.4 Product Innovation

Product innovation is another strategy. They use this strategy they innovate with their
own products like Yamaha R1 and introduce their new products. The firm launched four new
models in 2008. Two of them was of 125 cc and launched in February 2008. The other two,
both of 150 cc, came in July and in November.

30
 9.5 Three new Yamaha Bikes for India in 2008

Globally, Yamaha Motorcycles has a performance-oriented brand image and is known

for their technological excellence. But that’s not the case for Yamaha India with their damp
and not so exciting current line-up of bikes. Realizing the power and growth potential of the
Indian 2-wheeler market, Yamaha is bent on re-establishing themselves in India, only this time
aiming for the brand image rather than going after mass market sales. As part of their strategy
YMI recently launched the world class YZF R1 and MT01, furthermore Yamaha launched 3 new
bikes in India in 2008.

Yamaha YZF-R15

2008 Yamaha yzf r15 India Sports oriented, Yamaha YZF R15 is a track ready, made for
India bike inheriting from the Yamaha R1. The new single cylinder, 4-stroke, 150cc engine has
4-valves, is liquid cooled and have Fuel Injection. The bike also has front and rear disc brakes.
R15 launched in India in 2008. The power output was around 18 bhp.

Yamaha FZ (150)

Yamaha fz 150 India 2008 IMO The best looking among the 3, the Yamaha FZ is a mean-
looking naked street bike, again made for India inheriting from the European FZ1. FZ share
R15′s 150cc single cylinder engine but have air-cooled. Yamaha FZ 150 was also launched in
India 2008.

Yamaha Gladiator Type SS / RS

Yamaha Gladiator 2008 SS & RS India Yamaha Gladiator was available in two new variants
– Type SS (Stylish & Sporty) & Type RS (Racing Sports) and these bikes have the 125cc engine
block. Yamaha says SS & RS have 26 improved features to make them dynamic and best
performing bikes in their class. Gladiator Type SS / RS was also launched in India by the end of
February 2008.

31
9.6 The basic Four P’s of Marketing

Product
This is the most important thing in the mix, the physical product or the service that the
entity is offering for sale to the public. We will need to market this to the customers by telling
them the unique features and benefits the product has to offer as Yamaha did most of the
time when its value for money, they emphasis on that, when it’s about looks and image, they
show that as well.

Price

This is the price or amount that the customer needs to giveaway in exchange of the
product or service we are offering. Marketing strategy will need to ensure that people will get
the perceived value as greater than the price they will need to giveaway. Yamaha give the price
of normal bikes and gave the looks of superbikes.

Placement

Placement or distribution, we will need to spell out where the product or service is
available. This may either be online or offline, we will need to inform the public where the
products may be available. Yamaha places their products in showrooms as well their full
descriptive images online.

Promotion

We will need to promote the product or service whether online of offline. Online
marketing makes it cheaper to conduct promotions and reach as many people as possible.

Yamaha mostly uses brand ambassadors for the products and also promotes in moto racing.

32
 CHAPTER-10

MATERIALS DEPARTMENT

Hitherto, -Wheeler industry to place mainly through:

❖ Licensing and transfer to the Indian two technical collaborations and joint ventures

❖ a 3rd form –that is, the 100% owned subsidiary route – found a favour in the early

2000s

IWATA, July 13, 2018—Yamaha Motor Co., Ltd. has resolved to implement the following
organizational reforms and personnel changes, effective July 15, 2018.

Organizational reforms

1. Design Centre

In order to enhance design planning functions for each product and to strengthen brand
governance, the new Planning Design Division will be established to improve crossfunctional
work and overall optimization of design planning functions across all businesses.

2. Procurement Centre

In order to promote reform of indirect materials procurement through strengthening

governance of indirect materials procurement as well as by strengthening procurement
functions, the new Indirect Materials Procurement Promotion Division will be established
within the Procurement Section of the Procurement Centre.

3. PF Model Unit

33
 The organization of the PF Model Unit will be changed in order to achieve efficient
development of electrical and electronic systems. The new Electronics Technology Section will
be established. The Electronics System Development Division, based around system
development, and the Electronics Device Development Division, based around development
of electrical and electronic components and overall cross-functional experimental
responsibilities, will be positioned under the Electronic Engineering Promotion Section. Due to
this change, the Advanced Development Division will be dissolved, and its functions
aggregated within the new Electronics System Development Division.

34
 CHAPTER-11

FINANCE DEPARTMENT

• IWATA, JAPAN announced today that in its fiscal 2016 year, which finished business
expansion in emerging markets and improved profitability in various ordinary income fell
18.5 percent to 102.1 billion yen.

• In motorcycles, unit sales and operating income were strong in emerging markets such as
India, Vietnam and the Philippines, to increased sales of higher-priced products and cost
reductions

• Global net sales decreased due to foreign exchange effects

• In developed market, continued progress was achieved with initiatives to reduce

inventories, improve financial positions and carry out structural reforms

• In the marine sector, outboard motor unit sales increased, particularly large models in north
America and Europe.

• Sales and income overall decreased due to foreign exchange effects, but profitability
remained high and the operating income ratio was at 19 percent.

• Initiatives to establish a system-supplier business model achieved progress.

• Total assets as of March 31, 2019, stood at ¥514.8 billion, a decrease of ¥37.5 billion (–
6.8%) from the year-earlier ¥552.3 billion, owing mainly to a decline in investment
securities, while property, plant and equipment as well as intangible assets increased as a
result of strategic investments in growth.

• Total liabilities were ¥132.0 billion, down ¥32.0 billion (–19.5%) from the previous fiscal
year-end figure of ¥164.0 billion, owing to decreases in income taxes payable and

deferred tax liabilities.

• Total net assets amounted to ¥382.8 billion, a decrease of ¥5.6 billion (–1.4%), from ¥388.3
billion at the end of the previous fiscal year. This reflected shareholder returns in the form

35
of dividend payments totalling ¥10.5 billion and the purchase of treasury stock totalling
¥11.9

36
 CHAPTER-12

SYSTEM DEPARTMENT

You ride this machine. You drive a car, but you ride a motorcycle, a feeling you might liken to
riding a horse.

10.1 SYSTEM

Using all five senses, you become one with the machine in an organic unity. Since its founding,
Yamaha Motor Company has always held one performance standard above the rest: handling.
It's about creating a machine that responds naturally and in tune with human perceptions.
This standard is unchanging, and applied to machines for beginners as well as for the world's
top riders. The feeling of rider-machine unity is what creates the joy of the ride or the thrill of
the challenge…and it's what defines “Yamaha Handling.”

10.2 BEING ONE WITH THE MACHINE

Bringing rider and machine together as one: that is the long-standing and exclusive
development ideal of Yamaha. We are constantly enhancing our systems with the technology
necessary to deliver to the user the seductive exhilaration of a flawless ride.

Yamaha’s Distinctive Qualities

01. Extensive Experience

Extensive experience in the e-Bike business verifies the Yamaha e-Bike System as a first-
class product. The world ‘s first Power Assist Bicycle was sold in 1993 Over 5 million units
shipped worldwide.

37
02. Approved by technicians

Over the years, Yamaha has earned a reputation for high standard quality, offering e-Bike
Systems with excellent reliability.

• Maintenance free: the unit needs no regular replacement of internal components. Ride
far without the worries of not having your trusted technician nearby.

• Features excellent resistance to external factors and overheating. Just ride longer and
enjoy a wide variety of landscapes.

03. Intuitive operation and natural riding

Drawing from Yamaha's long history of engagement with motorsports, the assist setting
know-how applied to Yamaha's e-Bike Systems provides a powerful yet natural and intuitive
riding experience.

Sensing technology that supports your riding experience

Based on its sensing technology, the system automatically detects riding conditions and delivers
the appropriate assist power and acceleration.

38
Yamaha e-Bike System Sensing Technology
04. Automatic Support Mode

The expression of Yamaha's tuning know-how in each riding

scenario

The expression of Yamaha's tuning know-how in each riding scenario

Each of the sensors monitors the riding conditions, and algorithms automatically select the
appropriate level of pedal assistance. The result is a fine-tuned, user-friendly ride. The
algorithms are created individually for each of the drive units on the line-up, creating the
experience expected for each riding situation. If you wish to shift between assist modes
manually, you can turn the Automatic Support Mode off.

Examples of automatic support mode application support mode changes automatically

Riding up hill

39
 CHAPTER-13

RESEARCH AND DEVELOPMENT DEPARTMENT

13.1 Introduction

During its long history, Yamaha has accumulated original technologies in the field of
acoustic musical instruments based on its seasoned production skills and sensitivities about
sound creation that have been passed down from generation to generation. Similarly, in the
fields of digital musical instruments and audio equipment, Yamaha has developed epoch-
making electronics technologies. By drawing on and integrating both acoustic and digital
technologies, Yamaha is able to create new value that only it can create and offer new ways
of enjoying music.

13.2 Musical Instruments

To deliver even richer sound, Yamaha is continuing research into technologies in the fields of
processing wood and metal materials, as well as keyboard and action mechanisms, sound
sources, and acoustics.

Wood reforming technology A.R.E.

A.R.E. (Acoustic Resonance Enhancement) is an original wood reforming technology

developed by Yamaha. Through precise control of temperature, humidity, and atmospheric
pressure, the molecular properties of the wood can be manipulated into a more acoustically
ideal condition, similar to the molecular characteristics of wooden materials in instruments
that have been played for years.

Research to Analyse Vibrations and Acoustics of Musical Instruments

The shape of acoustic musical instruments, their structure, materials used, and other elements
of their design have a major effect on the tones the instruments produce. For this reason,

40
Yamaha evolves its instruments by using measuring and simulation technologies to study how
the various parts of the main body of instruments vibrate and how the sound is

41
generated by transmitting the vibration inside the instrument and into the surrounding
atmosphere.

Muting system for brass instruments "Silent Brass™"

Yamaha's "Silent Brass™" muting system for brass instruments allows users to practice or play
at any time and in any place. This system consists of a Pickup Mute, which is smaller and lighter
than in previous models, and a Personal Studio, which incorporates Brass Resonance
Modelling technology that makes use of Yamaha's unique signal processing technology.
Application and fusion of these latest technologies enable players to hear morerealistic
sounds and a more-pleasant feeling when performing and practicing.

13.3 Audio Equipment

In creating AV, PA, and networking equipment, Yamaha brings together its digital signal
processing and network technologies, which are at the core of cutting-edge electronics
technology, to deliver high-value-added products.

Aerodynamic sound control technology TWISTED FLARE PORT

One of the challenges in bass reflex speaker reproduction is to control air turbulence noise.
Yamaha's TWISTED FLARE PORT, is an aerodynamic sound control technology that can identify
the noise generation mechanism and to reduce it by utilizing aerodynamic sound analysis and
flow visualization measurement technology. As a result of the application of this technology,
listeners can enjoy clear and rich low-frequency reproduction.

Virtual surround technology AIR SURROUND XTREME

Yamaha has worked for many years in pursuit of better virtual surround reproduction that
gives the listeners a sense of "being there." The results of these research activities have been

42
the development of the AIR SURROUND XTREME, technology through the application of a
head related transfer function. Use of this function makes it possible to give listeners a clear
sense of sound source location and a high quality of surround sound with a single speaker, and
the sound is comparable to multichannel surround speakers.

Modelling technology VCM

To recreate the depth of sound that can be obtained from analogue audio equipment, Yamaha
has developed its VCM technology, which makes it possible to do precise modelling from the
circuit element level to the overall circuit in the world's best equipment. Yamaha's Effect
Program VCM Effect, which applies this technology, makes it possible to achieve the warmth
of musical sound and is now incorporated in Yamaha digital mixers and electronic musical
instruments.

13.4 Initiatives in New Businesses

VOCALOID

Yamaha's VOCALOID is a singing voice synthesis technology and its application software. Many
companies have introduced products that make use of this system to create singing voice
sounds by inputting the melody and lyrics. Applications have been developed to run on various
platforms, including PCs, iPads, and iPhone.

iPad and iPhone are registered trademarks of Apple Inc. in the United States and other

countries.

43
Music ensemble with AI and human musicians

This is a project dubbed Dear Glenn, a project inspired by his unique creative style and
launched to explore the future of music through the use of artificial intelligence. Glenn

Gould was a legendary pianist who passed away in 1982 at the young age of 50.

44
 CHAPTER-14

SALES DEPARTMENT

14.1 Service Overview

To create an environment that makes it easier for dealerships to sell, and customers to
buy, Yamaha Motor products, Yamaha Motor provides financial services (retail sales finance,
wholesale sales finance, leasing, insurance, etc.) to customers and dealerships through sales
finance subsidiaries in markets including the United States, Canada, Australia, France, Mexico,
and Brazil. Our financial services strengthen ties between customers and dealerships not only
by ourselves but also by using business methods aligned with each region’s business and
regulatory environment, including tie-ups with local partners.

14.2 Background of the Business

In addition to the financial services we had previously provided sometimes with partners
in North America, Central and South America, and Asia, in recent years we have established
sales finance subsidiaries in Australia (2002), Brazil (2008), Canada (2014), the

United States (2015), and France (2018). In 2015, we also established the Financial Service
Business Development Section (the current Financial Service Development Division) as a
business supervision department to promote the financial services business. As of December
31, 2019, the business’s outstanding receivables balance stood at ¥304.9 billion.

14.3 Current Business and Market Conditions

North America accounts for 75% of the Company’s entire financial services business.
In the United States in particular, we meet customers’ diverse finance needs with credit
card retail finance, extended warranties on Yamaha Motor products, and other services in
addition to ordinary instalment sales.

45
We consider this business to be strategically important over the medium to long term, both

46
to enhance our ties with customers and to secure stable earnings, and will work to expand the
business to new geographic and business areas.

Offices

Country Name of company

U.S.A. Yamaha Motor Finance Corporation, U.S.A.

Canada Yamaha Motor Finance Canada Ltd.

Australia Yamaha Motor Finance Australia Pty Limited

France Yamaha Motor Finance France S.A.S.

Mexico Yamaha Motor Consorcio Mexico, S.A. de C.V.

Brazil Banco Yamaha Motor do Brazil S.A.

Enhancing Ties with Customers and Securing Stable Earnings

47
Balance of financial receivables outstanding

Geographic distribution

North America（22.4%）

Europe（13.0%） Asia

（43.5%） Japan（

10.2%） Others（10.9%

14.4 Yamaha Current Models:

Yamaha Motor India deals in a wide range of motorbikes and two-wheeler scooters.

Here are the current models and their starting prices:

Motorcycles:

• YZF-R15 Version 2.0 (149.8cc) – Rs. 1,17,373

• Fazer (153cc) – Rs. 80,910

• Fazer Version 2.0 (149cc) – Rs. 86,805

• FZ-S (153cc) – Rs.78,250

• FZ-S FI Version 2.0 (149cc) – Rs 73,250

• FZ (153cc) – Rs. 72,385

• FZ FI Version 2.0 (149cc) – Rs. 79,596

48
 • SZ-S & SZ-RR (153cc) – Rs. 72,532

• SZ - RR Version 2.0 (149cc) – Rs. 65,300

• Saluto (125cc) – Rs. 52,000

• SS125 (123cc) – Rs. 59,243

• YBR125 (123cc) – Rs. 54,593

• YBR110 (106cc) – Rs. 48,218

• Crux (106cc) – Rs.41,086

Scooters:

• Ray (113cc) – Rs. 51,572

• Ray Z (113cc) – Rs. 48,936

• Alpha (113cc) – Rs. 48,747

Yamaha Motor India Sales Pvt. Ltd.:

It is a 100 percent subsidiary of the Yamaha Motor Company. It provides sales and

marketing services.

49
 CHAPTER-15

SWOT ANALYSIS

15.1 Strengths

1. Wide product range

Yamaha Motors product range includes motorcycles, scooters, motorized bicycles,

boats, sail boats, personal water craft, swimming pools, utility boats, fishing boats, outboard
motors, 4-wheel ATVs, recreational off-road vehicles, go-kart engines, golf carts, multipurpose
engines, electrical generators, water pumps, snowmobiles, small snow throwers, automobile
engines, surface mounters, intelligent machinery, industrial-use unmanned helicopters,
electrical power units for wheelchairs and helmets.

2. Excellent reputation

As per Forbes, Yamaha is the 69 highest regarded companies in the world because of
its excellent performance over time. It is ranked 658 with regards to its overall sales across the
world which touches #14 billion.

3. The sound

Yamaha motorcycles are absolutely loved for the engine ripping sound they make when
someone revs up the accelerator of a bike. In fact, it is a go to bike for motorcycle

lovers.

4. Rigid build

50
 All products from Yamaha are expected to have a rigid build and have a high quality.
Yamaha has an excellent quality control team and R&D team to ensure that the products sold
out in the market match the performance levels expected of these products.
5. Market leader in unique segments

Yamaha’s Snowmobile, water boats and engines are considered as the world
leaders and in such unique segments, Yamaha has a standing equivalent to Honda motors
though it may be behind in motorcycles.

6. Participation in sports –

Yamaha has branded itself very well by having regular participation in motorsports
especially in motorcycle racing and car racing.

7. Star in the BCG matrix

Yamaha may not have a high market share of the worldwide automobile market but it is
growing in a segment which has many competitors and yet the potential of the segment is
huge too. Thus, Yamaha is clearly a star in the BCG matrix when considering the motorcycle

industry.

15.2 Weakness

1. Marketing & Advertising

Because Yamaha is a star in the BCG Matrix, it needs to have huge expenditure where
Marketing and Advertising is concerned. However, compared to other brands like Hyundai or

51
Hero or others, Yamaha does not use television as effectively though it is present in Top
magazines and regularly found in the newspaper. A lot more is expected from a brand like

Yamaha in terms of Advertising.

2. Distribution

Another problem which is faced especially in developing countries where Yamaha is

present is that the distribution is not up to mark. Even in India, the distribution is quite low
and does not match with other prominent motorcycle brands like Honda, Bajaj, Hero or

others.

3. Service

Because the distribution points are less, the service points are less as well. Hence a
customer thinks of the service convenience before buying this product and might not purchase
the bike itself. Therefore, along with sales distribution, service points distribution is also
needed. This is probably the weakest point in the swot analysis of Yamaha.

4. Sales is dropping

As per this graph by Statista, the sales of Yamaha are dropping year on year and 2016 is
the year when it has dropped the most.

52
15.3 Opportunities

1. Electric Bikes

53
 Yamaha is already into Electric bikes and this is a product for the future. As more and
more people move onto electric cars, bikes will not be left far behind and already the adoption
has started in many regions. Regions which are environmentally conscious have made electric
bikes mandatory because of the low carbon footprint.

2. Low tier segment motorcycles

Most of Yamaha’s products are positioned as premium whereas Yamaha should be

looking at the low tier as well as mid-tier segments. Brands like Volkswagen in cars have
proved that a single company can cater to all segments even if it does the same with different
brands. With the same concept, Yamaha can concentrate on the low tier and midtier segment
to have a huge boost to its dropping sales.

3. Distribution

Having more distribution point and service points are required by the brand. It is a
weakness which Yamaha has and covering that weakness can mean an opportunity for the
brand.

4. Expansion

Expansion in international territories and developing markets can help the brand in
boosting sales. This expansion will not be limited to motorcycles but it can be applied to its
engines and all the other products in the arsenal of Yamaha.

5. Brand driver products

54
 Like Pulsar in Bajaj or Splendour and Passion in Honda, Yamaha needs products which
are the drivers for its brand. A single product or 2 products which are the main products
advertised by the brand and which can penetrate the market yet build brand equity, such
products need to be marketed by Yamaha.

6. Rising disposable income & Emerging markets

Yamaha needs to especially target nations where the GDP is rising and there is more
and more disposable income. Such markets will always first prefer bikes and then will move
on to cars. Yamaha needs to cover these regions to increase overall sales.

15.4 Threats

1. Lack of Advertising

As we can see that Yamaha sales are dropping which is due to a lack of advertising and
the proper positioning for the brand. Yamaha’s brand recall is quite lesser than its other
competitors and this has affected the brand equity, the recall and the overall sales of the
brand.

2. Competition

The competition in this segment is huge. There are national players in most countries
which have captured a large market share and to counter the competition, Yamaha needs
either price penetration or excellent marketing. But at all times, the competition effects both
– the topline and the bottom-line of the company.

55
3. Indirect Competition

Although all families have one motorcycle, it is observed that scooters and slowly yet
steadily replacing motorcycles. At the same time, many families have directly purchased
cars instead of purchasing a single motorcycle. This indirect competition rising in demand is
also a reason for the dropping sales of Yamaha and it is a threat to the brand.

56
 CHAPTER-16

FINDINGS AND SUGGESTIONS

16.1 Findings

• Maximum customers of superbikes are from metros.

• People want to possess these bikes due to passion & thrill not due to need

• Yamaha’s superbikes are preferred over’s other superbikes because of its

performance.

• At the price of superbikes one can have a luxurious car but people want to possess it
because superbikes are uncommon whereas car is common and superbikes are

also stylish.

• Maximum customers of Superbikes had other version of superbikes earlier before

Yamaha’s presence in superbikes in India. • People prefer Yamaha due to its
performance.

• People knew about Yamaha’s superbikes through advertisement and film (Dhoom
though in this film Suzuki’s Hayabusha is used). • When Yamaha launched its
superbikes in India it was a favourable time for the company as film Dhoom had
displayed another superbike “Hayabusha” and Yamaha got the benefit as it is a
pioneer in superbikes in India.

• Film actor “John Abraham’s” (who is a brand ambassador of Yamaha) bikers image
helped Yamaha to attract youngster for superbikes. • Yamaha’s superbikes will regain
its market share in India like it had gained in mid 80s during RX-100 and RD 350 series
era.

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 • Superbikes customers are from metros and the road condition in metros are good for
superbikes as compared to other cities. • Honda’s CBR1000 RR and Suzuki’s

Intruder & Hayabusha are Yamaha’s competitors.

• Harley Davidson and Ducati’s had launched its superbikes in India and are big threat
for Yamaha’s superbikes.

16.2 Suggestions

• Yamaha must focus in its performance bikes. Though this segment accounts for only
20% of the bike market, Yamaha has taken its share in this segment to more than 7%
in the first quarter of fy10.yamaha has got brand 18 Abhijat Kumar Shukla name in this
segment.

• Yamaha should also remain in the entry level & executive segment bikes, and should
launch some fuel-efficient bikes. This segment would work as an

advertisement platform for Yamaha. This segment can increase Yamaha’s

market presence.

• Yamaha should increase its distribution network. Provide spares for its older bikes
which are present in the market. Organize some rallies for its performance bikes to
increase its popularity, like Royal Enfield.

• Yamaha should introduce some bikes in between 150cc to 1000cc.this segment is

dominated by Royal Enfield (350cc -500cc), Bajaj (180cc -220cc). • In the year 2001,
Yamaha had launched Cruiser Bike ‘ENTICE (125cc) which was well in built,
fuelefficient in cruiser category and comfortable.

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The competitors at that time were Kawasaki –Bajaj’s ‘Eliminator’, Royal Enfield’s Thunder Bird.
Yamaha withdrew this model in 2003

✓ My suggestion is Yamaha should introduce its cruiser bike (200-250cc) in India as at

present this segment is dominated by Bajaj’s ‘Avenger’ and Yamaha would surely get
its market in this segment.

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 CHAPTER-17

CONCLUSION

❖ In conclusion, the success of Yamaha is inseparable with the scientific business

strategy.

❖ The business strategy is a general concept. It includes two indispensable elements called
competitive strategy and marketing strategies as well as the concept of the business
strategy.

❖ The strategic concept of Yamaha is to take the demand-side strategy. Yamaha

subdivides the whole market into several objective markets according to the researches
about the partialities of different individuals. And then different types of motor bikes
are put into the market aimed at attracting different consumer groups.

❖ The competitive strategy of Yamaha is to improve the innovative ability to win the
competitive advantage. Strong technological innovation ability makes Yamaha stand in
the most forward position of motor bikes industry all the time, and characterized
triband by a special vitality.

❖ And the marketing mix of Yamaha is to use the integrated marketing strategy

including product, price, promotion and place.

❖ It values the construction of a brand, the orientation of its products and pays a lot of
attention to technology improvement. It increases the sales through sensitive

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 BIBLIOGRAPHY

Books:

Philip Kotler, “Marketing Management”, Prentice Hall, 2003, pp.130-183

McDonald (2001), “Marketing plans”, How to prepare them, how to use the. 4th edition,
Butterworth Heinen mm

Skanda, “Management: Principles and Practice”, Jayco Publishing House, Mumbai,2011,

pp.128-165

Reference:

https://www.yamaha-motor-india.com/aboutus-manufacturing.html
https://www.google.com

https://www.slideshare.net/final-project-on-yamaha
https;//www.businesswire.com

https://www.en.wikipedia.org/wiki/yamaha_motor_company