ON
BRAND IMAGE OF YAMAHA AND ITS COMPETITORS
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)
ACKNOWLEDGEMENT
Sincere gratitude is due to industry guide Mr. Ankur suri, Asst. Manager (Product Planning and Brand Management), India Yamaha Motor, Surajpur Plant, Greater Noida (U.P.) for mentoring. It is the result of his esteemed guidance that this project culminated. Special thanks are due to Miss.padma Sharma esteemed faculty guide for all the efforts he took to mentor me regarding the project gratitude is also due to all the team of Product Planning and Brand Development, India Yamaha Motor Pvt. Ltd., Surajpur, for their guidance.
DECLARATION
I, Pradeep kumar singh student of Arya engg.&research centre,jaipur hereby declare that the project entitled Brand Image Of Motor Cycles, With Emphasis on Products From India Yamaha Motor Pvt. India Ltd. at Yamaha Motor India Ltd., is the original work done by me and the information provided in the study is authentic to the best of my knowledge. This study report has not been submitted to any other institution or university for the award or any other degree. This report is based on my personal opinion hence cannot be referred to legal purpose.
TABLE OF CONTENT
Subject
1. 2. 3.
Introduction to the Industry Introduction to the Organization Research Methodology 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. Title of the Study Duration of the Project Objective of Study Type of Research Sample Size and method of selecting sample Scope of Study Limitation of Study
4. 5. 6. 7. 8. 9. 10.
Facts and Findings Analysis and Interpretation SWOT Conclusion Recommendation and Suggestions Appendix Bibliography
INTRDOCTION
Yamaha's history goes back over a hundred years to 1887 when Torakusu Yamaha founded the company, which began producing reed organs. The Yamaha Corporation in Japan (then Nippon Gakki Co., Ltd.) has grown to become the world's largest manufacturer of a full line of musical instruments, and a leading producer of audio/visual products, semiconductors and other computer related products, sporting goods, home appliances and furniture, specialty metals, machine tools, and industrial robots. The Yamaha Motor Corporation, Ltd., begun on July 1, 1955, is a major part of the entire Yamaha group, but is a separately managed business entity from the Yamaha Corporation. The Yamaha Motor Corporation is the second largest manufacturer of motorcycles in the world. Yamaha Motor Corporation owns its wholly-owned subsidiary in the U.S. called Yamaha Motor Corporation, USA, that is handling not only motorcycles, but also snow mobiles, golf carts, outboard engines, and water vehicles, under the brand name of Yamaha as well. In 1954 production of the first motorcycles began, a simple 125cc single-cylinder two-stroke. It was a copy of the German DKW design, which the British BSA Company had also copied in the post-war era and manufactured as the Bantam. The first Yamaha, the YAI, known to Japanese enthusiasts as Akatombo, the "Red Dragonfly", established a reputation as a well-built and reliable machine. Racing successes helped boost its popularity and a second machine, the 175cc YCI was soon in production. The first Yamaha-designed motorcycle was the twin-cylinder YDI produced in 1957. The racing version, producing 20bhp, won the Mount Asama race that year. Production was still modest at 15,811 motorcycle, far less than Honda or Suzuki. The company grew rapidly over the next three years and in 1959 introduced the first sports model to be offered by a Japanese factory, the twin-cylinder YDSI with five-speed gearbox. Owners who wanted to compete in road racing or motocross could buy kits to convert the machine for both road and motocross racing.
By 1960 production had increased 600% to 138,000 motorcycles. In Japan a period of recession followed during which Yamaha, and the other major Japanese manufacturers, increased their exports so that they would not be so dependent on the home market. To help boost export sales, Yamaha sent a team to the European Grand Prix in 1961, but it was not until the 1963 season that results were achieved. After the Korean War the American economy was booming and Japanese exports were increasing. In 1962 Yamaha exported 12,000 motorcycles. The next year it was 36,000 and in 1964 production rose to 87,000. In 1963 Yamaha had produced a small batch of 250CC road racing motorcycles for sale, the aircooled, twin-cylinder TDI. Ever since then Yamaha has built and sold motorcycles that could be raced successfully "straight out of the crate", and as a consequence Yamaha machines have won more road races than any other make, exposing Yamaha to a good deal of publicity. By 1965 production was 244,000 units, split about 50/50 between home and export sales. One of the biggest drawbacks to the sales of two-strokes was that the rider had to mix oil with their gas. Yamaha technicians accomplished a major technical feat by the development and introduction of a new Autolube system. Basically an oil tank that fed lubricant to a pump that metered oil to the big ends, main bearings and cylinder barrels. It proved very reliable and did away with mixing oil and gas at every fill up. The first overseas factory was opened in Siam in 1966 to supply Southeast Asia. In 1967 Yamaha production surpassed that of Suzuki by 4,000 at 406,000 units. Yamaha established a lead with the introduction of the first true trail bike "the 250cc single-cylinder DTI". The company also developed a two-liter, six-cylinder, double overhead-camshaft sports car unit for Toyota Motor. Which proved helpful when Yamaha produced their own high-performance fourstroke motorcycles. In 1969 Yamaha build a full size road racing circuit near their main factory at Iwata.
By 1970 the number of models had expanded to 20 ranging from 50cc to 350cc, with production up to 574,000 machines, 60% of which were for export. That year Yamaha broke their twostroke tradition by launching their first four-stroke motorcycle, the 650cc XSI vertical twin modeled on the famous Triumph twins. Yamaha realized the long-term potential of the two-stroke engine and continued to develop two-stroke bikes, concentrating on engines 400cc and under. In 1973 production topped one million (1,000,000) motorcycles per year for the first time, leaving Suzuki way behind at 642,000 and catching up on Honda's 1,836,000. During the 1970's Yamaha technicians concentrated on development of four-stroke models that were designed to pass the ever-increasing exhaust emission laws and to be more economical than the two-strokes that had made Yamaha's fortune. Over the years Yamaha produced some less successful motorcycles:
The TX750 twin of 1972. The TX500 double overhead-camshaft, four-valve per cylinder, twin of 1973. The XS750 shaft-drive, double overhead-camshaft, three cylinder of 1976. And the XS Eleven, four-cylinder of 1977, was at the time the biggest bike produced by a Japanese manufacturer.
Other four-strokes were more successful, notably. The XT500 single-cylinder trail bike of 1976. And the XS350 single overhead-camshaft, twin.
In the 70's the RD twin cylinder sports models were a big success as well as the RD250LC and RD350LC water-cooled versions that replaced them in the eighties which were based on the famous TZ race bikes. Production in 1980 was 2,214,000, with export sales of 1,383,000. In the 1980's the company introduced the compact XJ four cylinder models, ranging from 550cc to 1100cc. Not wanting to miss anything the company also introduced the 750cc and 1000cc air-cooled V-twin models followed by the XZ550 water-cooled, mid-weight sports bike.
According to Society of Indian Automobile Manufacturers, total sales for all categories stood at 12,08,851 units as against 9,29,917 units for the corresponding period a year-ago, a growth of 30%
which the Met department has predicted to be good this year, becomes weak. Rising inflation However, SIAM director general cautioned that sales may be affected if the monsoon, is another concern. "If the government takes steps to control the money supply, then at some point of time interest rates will be under pressure. We have to track it very carefully," Mr Mathur, Director General SIAM, said. Sales of two-wheelers in May also jumped by 28.66% over that of May 2009. Motorcycle sales in India during May went up by 25.80% to 7,25,311 units from 5,76,537 units in the year-ago period. The country's largest motorcycle maker Hero Honda registered a growth of 11.74% in its sales at 4,01,320 units in May 2010.Sales in rival Bajaj Auto also shot up by 68.73% to 1,91,726 units, while Chennai-based TVS Motor Company posted a 21.21% growth at 52,319 units in May. Honda Motorcycle & Scooter India (HMSI) saw its bike sales jump by 52.24% to 55,110 units. In the scooter segment, the total sales in May jumped by 45.45% to 1,57,509 units as against 1,08,291 units sold in the corresponding month last year, SIAM said.HMSI's scooter sales were
up by 28.03% at 76,980 units, while TVS Motor's scooter sales grew by 40.19% in May to 30,567 units. Hero Honda's scooter sales jumped 23,738 units, an increase by 61.21% from last year.
(Number of Vehicles sold) Category Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Grand Total 6,810,537 7,897,629 8,906,428 10,123,988 9,654,435 9,724,243 12,292,770 5,364,249 6,209,765 7,052,391 7,872,334 7,249,278 7,437,619 9,371,231 284,078 307,862 359,920 403,910 364,781 349,727 440,368 260,114 318,430 351,041 467,765 490,494 384,194 531,395 902,096 1,061,572 1,143,076 1,379,979 1,549,882 1,552,703 1,949,776 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
OTHER
MAJOR
MOTORCYCLE
COMPANIES
IN
THE
INDIAN MARKET
The country's largest two-wheeler maker, Hero Honda, has reported 17.35 per cent rise in sales at 414,638 units in the month of march, the best-ever figure reported by the company for the month of March. The company had sold 353,342 units during March last year,
HHML registered cumulative sales of 4,600,130 units during 2009-10, against 3,722,000 units in the previous fiscal, up 23.59 per cent. Hero Honda is recognized today as one of the most successful joint ventures in the world.
The Bajaj Group is amongst the top 10 business houses in India. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer .The country's second largest two- wheeler maker Bajaj Auto has reported 85.12 percent jump in its motorcycle sales at 244,828 units in March,2010. The company had sold 132,253 units in March last year. During the entire 2009-10 financial year, the company sold 2,506,749 units in the motorcycle segment, a jump of 31.39 percent over 1,907,853 units in the year-ago period, it added.BAL attributed the growth to robust sales of Pulsar and Discover range of bikes. In March, total two-wheeler sales jumped by 84.57 percent to 244,889 units compared to 132,683 units in the same period a year ago, the statement said.
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS Group. Motorcycle segment registered a growth of 7 % in March 2010 with sales of 64,120 units in March 2010 when compared to 59,796 units in the same month of the year, 2009.
Suzuki Motorcycle India Private Limited is a subsidiary of Suzuki Motor Corporation Suzuki Motorcycle India reported a jump of 76.13 per cent in its sales in March at 21,752 units, on the back of good response to its new products. The company had sold 12,350 units during March 2009.
Honda Motorcycles & Scooters India Pvt. Ltd. Factory was established in January 2001. Motorcycle segment sales jumped 63.25 per cent to 65,888 units in March, against 40,360 units in the corresponding period a year ago. The company reported a robust growth of 88.89 per cent in scooter sales at 78,400 units in the said month, compared with 41,505 units in the year agoperiod
OBJECTIVE OF STUDY
The prime objective of this project is to ascertain the brand image of the major motorcycle companies present in the Indian motorcycle industry. Also the reason why people prefer certain colours in the bikes over other colours available in the same models will be studied. The pertinent data will be obtained and studied from the responses of the customers of motorcycle through a detailed questionnaire.
To understand the Brand Image of Yamaha vs. its competitors so as to help the company to focus on its marketing plan and strengthen its future positioning. To check the quality of awareness of Yamaha and its competitors among the Indian customers. To check the present performance of the companies and study the attributes which are liked and considered by people and also to know about the reputation of company in market. To study the parameters which people associate with a certain Brand.
Today, India is the second largest producer and customer of two-wheelers in the world. The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from mopeds to scooters, and more recently, from scooters to motorcycles. With the reduction in the price differential between scooters and motorcycles, there has been a perceptible shift towards motorcycles because of their better styling, higher fuel efficiency, and higher load carrying capacity.Of late, scooters have made a resurgence. Honda Motors and Scooters India Limited is the market leader in the scooter segment. Also female centric twowheelers like Pep have gained major portion of the market.
Company Profile
India Yamaha Motor Private Limited India Yamaha Motor (IYM) is a 100% subsidiary of Yamaha Motor Corporation of Japan. The company has its manufacturing unit in Faridabad and Surajpur, which supports the production of motorcycles for domestic as well as overseas market. Presently 10 models roll out of this two plant.
July 1, 1955 (Yamaha Japan) Motorcycle manufacturing 2500 Shingai, Iwata-shi Shizuoka-ken, Japan
Vision
We will establish YAMAHA as the "exclusive & trusted brand" of customers by "creating Kando" (touching their hearts) - the first time and every time with world class products & services delivered by people having "passion for customers".
Mission
Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHA products, focusing on serving our customer where we can build long term relationships by raising their lifestyle through performance excellence, proactive design & innovative technology. Our innovative solutions will always exceed the changing needs of our customers and provide value added vehicles. Build the Winning Team with capabilities for success, thriving in a climate for action and delivering results. Our employees are the most valuable assets and we intend to develop them to achieve international level of professionalism with progressive career development. As a good corporate citizen, we will conduct our business ethically and socially in a responsible manner with concerns for the environment.Grow through continuously innovating our business processes for creating value and knowledge across our customers thereby earning the loyalty of our partners & increasing our stakeholder value.
Core competencies
1. Customer #1 Yamaha put customers first in everything they do. They take decisions keeping the customer in mind. 2. Challenging Spirit Yamaha strive for excellence in everything they do and in the quality of goods & services they provide. 3. Team-work -They work cohesively with the colleagues as a multi-cultural team built on trust, respect, understanding & mutual co-operation. 4. Frank & Fair Organizationm compactness Yamaha Motor is a company that has worked ever since its founding to build products defined by the concepts of high-quality and highperformance and light weight and as they have continued to develop new technologies in the areas of small engine technology and FRP processing technology as well as control and component technologies. It can also be said that their corporate history has taken a path where people are the fundamental element and their product creation and other corporate activities have always been aimed at touching peoples hearts. Their goal has always been to provide products that empower
each and every customer and make their lives more fulfilling by offering greater speed, greater mobility and greater potential. As a company that makes the world its field and offers products for the land, the water, the snowfields and the sky, Yamaha Motor strives to be a company that offers new excitement and a more fulfilling life for people all over the world and to use our ingenuity and passion to realize peoples dreams and always be the ones they look to for the next Kando. Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intense excitement that people experience when they encounter something of exceptional value.
Manufacturing process
YM Ltd. is IS0-14001 certified. All our endeavors give us reason to believe that sustainab IYM's manufacturing facilities comprises of 2 state-of-the-art Plants at - Faridabad (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 agile Manufacturing Processes. They 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 International standards of excellence in every sphere.As an Environmentally sensitive organization we have the concept of "Environment-friendly technology" ingrained in our Corporate Philosophy. The Company boasts of effluent Treatment plant, Rain water - Harvesting mechanism, a motivated forestation drive. I le development for Yamaha will not remain merely an idea in pipeline.
Research Methodology:
Research Design
The data obtained from the survey was sorted out in a proper sequence for analysis purpose. Incomplete questionnaires were discarded. Analysis was done thereupon using. Microsoft Office Excel 2007 platform. Extensive use of bar-graphs, pie-charts was employed. Where there were more than more than one preference for a given question, proper weightage was given to the different preferences according to the order of preference.
Microsoft Office Excel 2007 is a general analysis platform from Microsoft Corporation. U.S.A. Microsoft Office Excel has gained across industry acceptance for the simplicity and completeness for analysis purposes.The results obtained from the analysis using Excel platform are usually not directly applicable but nevertheless present the bare facts and data can thus be deciphered .
Judgmental sampling is a type of non-probability sampling. Population elements are selected on the basis of judgment of researcher. Researcher chooses elements to be selected in the sample.Of all sampling types, convenience sampling is least expensive and least time consuming. Non-Probability sampling procedure was used. Non-Probability Sampling relies on the personal judgment of the researcher rather than chance to select sample elements. Researcher decides which elements to take in the sample. Because there is no way of determining the probability of selecting any particular element for inclusion in the sample, the estimates obtained are not statistically projectable to the population. For data gathering purposes friends, relatives, were surveyed. Also spot surveys were conducted in the Vehicle parking stands of MMX Mall (Sahibabad) and Shipra Mall (Ghaziabad).
Sample size
Sample size refers to the number of elements to be included in the study. Determining the sample size is complex and involves several qualitative and quantitative considerations. Import qualitative features that we considered in determining the sample size include: Bajaj Auto Limited. Importance of the decision
1. Nature of the research 2. Number of variables 3. Sample sizes used in similar studied 4. Complication rates 5. Resource constraints
Only the brands actively present in the Indian motorcycle were considered namely1. Hero Honda Motorcycles Limited 2. India Yamaha Motor Private Limited. 3. Honda Motors and Scooters India Limited. 4. T.V.S. Motor Limited. 5. Suzuki Motorcycle Limited. 6. Others was used as a generic category for all other brands.
Data collection
Data collected is an elaborate process in which the researcher makes a planned search for all therelevant data. Data is the foundation of all marketing research. It is the raw material with which a researcher functions.
. Primary Data
Primary Data is the original data collected by the researcher. It has a specific purpose of addressing the problem at hand. One set of questionnaire was prepared.The structured
questionnaire consisted of closed ended questions. The questions were made simple and easy to answer for the interviewer. The customers to be interviewed were selected by the researcher.. The respondents had to be in the age group between 18 -60 years and they must own a twowheeler in Delhi & NCR (Noida, G. Noida, Meerut, Muradabad, Gurgaon, and Ghaziabad).
Design the questionnaire to overcome the respondents inability and unwillingness to answer the questions
LIMITATIONS
i) ii) iii) iv) v) vi) The survey was restricted to Delhi and NCR region (Ghaziabad, Gurgaon, Noida, Greater Noida, Meerut, Muradabad.) in particular. Inadequate time to follow the customer response. Lack of experience in handling surveys. Most of the respondents were having inadequate time for filling in the questionnaire. Unwillingness of respondent to provide information
FINDINGS
(1) Yamaha is the most favourite brand amongst youths in the Indian market. (2) Yamaha is regarded as the original makers of racing bikes by the respondents. (3) Yamaha is the third most preferred brand after Hero Honda Motorcycles Ltd. And (4) Bajaj Auto Ltd. (5) Youth (Students) are the major market for motorcycles in India. (6) Family/friends, TVCF and newspapers are the major source of awareness for motorcycle brand awareness. (7) Major influencing factors in the purchase of bikes are-family/ friends, personal experience and girl friend. (8) R15, Fazer, FZ-S from Yamaha are amongst the top ten favourite bikesin the surveyed group. (9) Hero Honda and Bajaj are considered as brands with most consumer favourable attributes. They are also the brands most likely to be preferred and recommended. (10) Yamaha is way ahead in overall consumer favourable response compared to TVS, Suzuki, HMSI. (11) Majority of the Consumers prefer red and black colour in geneand also in their bikes. (12) Yamaha has maximum number of models in the dream bikescategory. (13) Pulsar variants from the Bajaj stable is the most favourite model from any company. (14) Yamaha is the most favourite brand amongst youths in the Indian market. (15) Yamaha is regarded as the original makers of racing bikes by the respondents.
(16) Yamaha is the third most preferred brand after Hero Honda Motorcycles Ltd. And (17) Bajaj Auto Ltd. (18) Youth (Students) are the major market for motorcycles in India.
(19) Family/friends, TVCF and newspapers are the major source of awareness for motorcycle brand awareness. (20) Major influencing factors in the purchase of bikes are-family/ friends, personal experience and girl friend. (21) R15, Fazer, FZ-S from Yamaha are amongst the top ten favourite bikes in the surveyed group. (22) Hero Honda and Bajaj are considered as brands with most consumer favourable attributes. They are also the brands most likely to be preferred and recommended. (23) Yamaha is way ahead in overall consumer favourable response compared to TVS, Suzuki, HMSI. (24) Majority of the Consumers prefer red and black colour in genera and also in their bikes. (25) Yamaha has maximum number of models in the dream bikes category. (26) Pulsar variants from the Bajaj stable is the most favourite model from company.
Data analysis
AGE OF THE RESPONS Age Group
Under 20 Years 21-25 Years 26-30 Years 31-35 Years 36-40 Years 41-50 Years Above 51 Years TOTAL RESPONDENTS
Figure
26 151 87 38 18 18 7 345
Percent
7.536% 43.768% 25.217% 11.014% 5.217% 5.217% 2.029% 100.000%
N=345
5% 11% 44% 25% 5% 2% 8%
Age Group Under 20 Years 21-25 Years 26-30 Years 31-35 Years 36-40 Years 41-50 Years Above 51 Years
Interpretation
All the possible age groups from 18 years of age till 60 years of age were considered. Males having atleast a two-wheeler, preferably a motorcycle were preferred. As is evident from the sample data, preference for motorcycle goes on decreasing as the age limit crosses 35 years. Age limit abve 51 years is the least attractive segment for the motorcycle companies.To be a leader in the motorcycle market , thus, every company should try to pursue 18-35 years of age. Better still if the company is able to cater to distinguish between these sub-segments.
RESPONDENTS PROFILE:
Occupation
Student Office Employee Factory Worker Shop Owner Business Man Professional (lawyers, doctors) Farmer Others( Retired personnel) TOTAL RESPONDENTS
Figure
143 109 12 21 16 39 3 2 345
Percent
41% 32% 3% 6% 5% 11% 1% 1% 100%
Farmer
N=345
41
Professional
Business Man
16
Shop Owner
21
Factory Worker
12
Office Employee
109
Student
143
Interpretation
All the occupation groups were tried to be covered. Majority of the sample was students, the major market of motorcycles. Also this segment is most volatile. Yamaha can leverage this segment by providing them certain motivations (like increased number of free services). Office goers come second. Distant third comeprofessionals ( doctors, lawyers,..). Together these three segments make for 85 percent of the motorcycle market in the surveyed group. These segments should be holistically pursued to emerge a market winner.
Series2(second preference)
28 49 28
Series3
104 103 72 66 61 57 52 42 37 34
Interpretation
In the surveyed group, clearly Pulsar 150 is the first preference. Karizma ZMR is the second most preferred brand. Yamaha has three models in the top ten most preferred bikes namely,R15( third most preferred bike), FZ-S (eighth most preferred bike) and Fazer (ninth most preferred bike). Also effectiveness of brand promotion by constant bombardment is depicted from the Pulsar Model bikes from the stables of Bajaj. Pulsar is mainly positioned in consumers bikes as the bike.
Yamaha Honda
3.00% 5.51%
TVS
86.67%
HMSI
0.29%
Suzuki
0.29%
Others
0.29%
Pulsar135
97.39%
2.03%
0.29%
0.29%
0%
0%
0%
Karizma ZMR
1.15%
1.44%
96.23%
0%
1.12%
0.29%
0%
Fazer
0.29%
13.04%
2.90%
4.93%
8.99%
68.99%
1.12%
GS150 R
0.29%
13.04%
2.90%
4.93%
8.99%
68.99%
1.12%
CBF Stunner
1.44%
1.44%
13.62%
2.30%
68.99%
11.59%
0.58%
Others
Suzuki
HMSI
TVS
Hero Honda
Yamaha
Bajaj 0% Apache RTR Pulsar135 Karizma ZMR Fazer GS150 R CBF Stunner 10% Bajaj 12 336 4 1 1 5 20% Yamaha 12 7 5 320 45 5 30% 40% 50% TVS 299 1 3 11 17 8 2 31 238 1 6 238 40 1 3 2 60% 70% HMSI 1 80% Suzuki 1 90% 100%
Others 1
Interpretation
The most striking feature of this question was its outcome. Major/ new brands from all the stables are well known, irrespective of the age of the respondents. Also Pulsar and Karizma ZMR are well known brands as no other option was ticked for these two bikes. Also, there were some percentages of the other options for all other bikes. This calls for further positioning on part of these companies.
Percentage
27.83% 18.84% 39.13% 4.35% 8.70% 1.16%
135
N=34 5
30 15 4
Hero Honda
Honda
TVS
Suzuki
Interpretation
Hero Honda Motorcycles Limited ( the world leader in sales) tops the list. Next comes Bajaj Auto Limited. Followed by India Yamaha Motorcycles Ltd. Yamaha far outweighs its major rivals( big brothers in the Indian market)-TVS, Honda. This establishes the fact that Yamaha needs to promote its bikes aggressively. It is very much feasible for Yamaha to become number three in the Indian market. This also establishes the fact that consumers prefer Yamaha bikes as an efficient bike manufacturer with the capability to satisfy their inherent
biking needs. Also since youth segment was the aggressively pursued brand, this bodes well for Yamaha. Some stimulus is needed to gain the pocket share of consumers compared to TV and HMSI.
Percentage
19.42% 16.81% 15.65% 12.17% 23.77% 8.41% 2.90% 0.87% 0.00%
1% 8% 3% 19%
N=345 TVCF
Newspaper Magazine Showroom
24%
12%
17% 16%
Interpretation
Interestingly family and friends tops the major source of awareness for motorcycles. This was specifically true in the case of students. Thus positioning itself as a manufacturer of safety first bikes, companies targeting this company stand a good chance to be the market leader. But also, this is the most style conscious segment. Thus it is imperative to maintain the style quotient in
the models. TVCF comes as the second best source of advertisement cannot be neglected. This calls for more
Yamaha. Newspapers come at third place. Also, newspapers are a robust source of advertisement in rural areas, where electricity is a rare commodity. This print media should be assiduously pursued to augment the brand reach in the whole country.
Percent
40.00% 12.75% 4.06% 5.51% 29.28% 1.74% 3.19% 2.90% 0.58%
2% 3%
3% 1%
Family/ Friends
N=345
Girl Friend
40% 29%
Hoarding
Show Off
5%
13% 4%
Personal Experience
Interpretation
Across all age groups, family and friends was the most influencing factor in the purchase of motorcycles. Also since students (youth) are the major market for motorcycles, favourable positioning as a value brand, the motorcycle manufacturer can gain acceptance. In the age of nuclear families, parents are the main source of influence. Thus motorcycle companies should position themselves as a safety first bike manufacturers. For all other age groups, personal experience is the main influencing factor. Quality is imperative to gain acceptance. Satisfied customers spread a positive word for the brand. Also tend to become repeat buyers. Thus satisfying the needs in a better way than competitors will catapult Yamaha to be the market leader in the Indian market.
33 27 15 56 157 57
N=345
Interpretation
Yamaha is known as a racing bikes manufacturer. Yamahas RX 100 is still revered for its pickup and speed. Speed Biking is mainly attributed to Yamaha. It holds the record for maximum wins in Grand Prix. The Government of India is investing heavily in roads and highways. Properly pursuing the inherent racing tendency in youngsters by providing racing bikes will set Yamaha apart from its competitors. Till now, no Indian manufacturer has provided the super bikes. These bikes are mainly imported. Setting up speed bikes manufacturing will provide
Yamaha early mover advantage in the Indian market. Also this can be competitive advantage for Yamaha. But caution must be provided to train safe biking habits amongst the consumers.
Percentage
29.86% 34.20% 27.83% 3.19% 3.48% 1.45%
Interpretation
Yamaha is the bike of the youth. In the survey conducted, it far outweighed Bajaj and Hero Honda. Most striking feature was that all the respondents, irrespective of the age groups opted Yamaha as truly associated with youth. Youth being the major market for motorcycles, it is a favourable outcome of Yamahas Youth Approaches. FZ series and R15 are the bikes designed with youth in mind. Yamaha should further explore this profitable segment and try to more than satisfy this segments needs.
Value positioning of motorcycles in the minds of consumers Advanced Tradition al Hero Honda 54.49% 20.58% 51.59% 35.36% Reliable/ High Stylish Trend
Sporty Setter 17.97 % 24.64 33.62 % 28.99 % 17.97 % 5.22% 3.48% 4.93%
24.93%
33.91%
29.57%
30.72%
% 40.87
1.16% 5.80%
Good Innovative Hero Honda Bajaj Yamaha TVS HMSI Suzuki 25.22% 24.93% 27.54% 4.64% 6.38% 5.51% 5.80% Mileage 51.88% 20.87% 8.12% 11.59% 4.35% 2.90% 0.29% Passionate 30.72% 24.06% 20.87% 7.54% 6.96% 3.19% 6.67%
Interestingly for attribute ( barring technology, performance and affordability) there seemed to be lack of customer satisfaction on other key attributes. These are the attributes to be pursued religiously and conveyed to the consumers. These are some of the attributes that can be
positioned in the minds of consumers to satisfy their unmet needs. Hero Honda dominates nearly all the attributes. This elucidates the reason for its market leader position. Yamaha as a brand leads as being the most innovative and most stylish bikes manufacturer. This supports the endeavor of Yamaha as the youth centric.
This makes it all the more likeable brand among the youth, the major market for motorcycles. Yamaha should assiduously pursue this segment to out-beat its competitors.
N=345
Affordable Price Passionate Good Mileage Innovative Trend Setter
87 130 101 33 54 198 106 83 72 26 2411
179
72
28 40 15 10
86
95
16 22 19
116
100
62
1812 17
Stylish/ Sporty
High Performance Reliable/ Trustworthy Advanced Technology
62
85
141
18 2015
122
106
77
1317 10
178
102
38 156 3
71
117
109
132312
Traditional
Hero Honda
0 50
86 250
Bajaj
Yamaha
Brand
Bajaj Yamaha Hero Honda TVS Suzuki HMSI
Recommenders
35.36% 21.16% 34.49% 6.67% 3.19% 2.03%
Preferers
29.86% 20.87% 37.10% 8.12% 1.74% 2.32%
140.00 120.00
N=345
Bajaj Yamaha Hero Honda
No of Persons
N=345
Preferrers
20.00
0.00
Hero Honda is the most preferred bike while Bajaj is the most recommended brand in the surveyed group. This shows an interesting dichotomy on part of consumers. Ideally there should be a common yardstick for liking of a bike. Respondents had ranked Bajaj higher on advanced technology and stylish vis--vis Hero Honda. May be this is the reason for this dichotomy. Yamaha was adjudged as the most stylish bike, but is not the most recommended. May be advanced technology attribute is the reason behind this. As regards to other brands, Yamaha outweighs TVS, Suzuki and HMSI on recommender and preferers. This establishes the fact that Yamaha is on the way to beat these rivals in the intensely competitive Indian market. Augmented brand promotion is needed on part of Yamaha to increase its market share. Kando will definitely be gained through intensive promotion of the brand.
Brand
Bajaj Yamaha Hero Honda TVS HMSI Suzuki
Percentage
5.51% 11.01% 3.77% 30.14% 22.32% 27.25%
94 77 104 13 38 19
20 40 60 80 100
N=345
Bajaj
Yamaha
Hero Honda TVS HMSI Suzuki
120
No of Persons
Interpretation
Market leader position doesnot indicates that the brand is revered by all. Hero Honda Motorcycles, the most selling bikes brand( in the world) by volumes is also a no-no for 3.77% of the respondents. 5.55% of the respondents are averse to Bajaj. This establishes that it is impossible for any single brand to satisfy the market as a whole, hence the utility of segmentation. Yamaha fairs much better compared to other brands. This again establishes the
importance of promotional activities. Augmented promotional activities on national scale can catapult Yamaha far ahead of TVS and HMSI.
TV
Honda S
1 1
2 3 1 1
2 3 1 6 6 1
5 3
8 12 20 30 22 2 1
2 10 10 1
8 13 3
11 5 14
5 1 8
2 11 4
18 26 29
Never tried No connection with youth No interest in brand No liking for the brand No new models Not attractive Not comfortable Not competitive Not innovative Past experience Past market performance 1 1 1 1 1 4 1 1 4 2
1 1 1 9 1 7 6 3 19 2 1 4 2 1 3 3 2 1 1 1 4 18 3
1 1 3 28 3 47 5 2 10 8 3
Hero Bajaj
Poor service Poor brand image Resale value Shocker problem Short in size Test drive Very common Weak reliable TOTAL 19 body, Not 1 38 1 13 6 104 5 76 4 93 17 1 3 2 4 2 after sales 2 2 2 6 1 3 1 2 2 4 1 1 11 10 6 2 2 4 4
45 40 35
N=345 Suzuki
18
30 25
HMSI
13
20 15 10 5 0
11 8 2 3 3
6 7
19 10 1 4 8 1 11 6 6 6 10
TVS
3 1
2 4
Interpretation
Several Reasons were attributed for rejection. We graphed top 15 reasons for this rejection. Here some tandem was seen as per the market position of the top 2 players in the Indian motorcycle segment. Both Hero Honda and Bajaj have les negative attributes assigned to them. Improving on other attributes and these attributes ingeniously can leverage Yamaha to much better market share. Also Yamaha is way ahead compared to other brands. This augments well for Yamaha. Yamaha should hone upon the mileage problem. Majority of the respondents complained about Yamahas low average attribute. Also their bikes are positioned as costly. This presents unique technical challenge for Yamaha. Costs should be regulated considering the demand. Powerful
bikes guzzle petrol. Thus Yamaha should launch more economical bikes with optimum mileage. Care should be taken that proper segmentation is positioned in the minds of consumers regarding power bikes and economical bikes.
Percentage
6.09% 8.99% 11.30% 73.62%
N=345
Interpretation
Objective behind asking this question was to gauge the consumer awareness of Yamaha brand particularly. Consumers identify the brand with the personality endorsing the brand. John Abraham is an avid biker. Also he is the perfection of typical Indian youth. He has his own cult following amongst the youths. The percentage of correct awareness commensurate with the brand awareness of the consumers. 74% of the respondents correctly identified John as the brand personality of IYM Ltd. Most interesting fact was that regardless of age, consumers had this awareness. This establishes that consumers follow Yamaha. Yamaha needs to seriously adapt
itself to the Indian market needs, to beat its rivals. Serious analysis of all the various aspects of the business is necessitated by this finding. It comes distant 5 even when adequate awareness levels about the brand persist.
Percentage
0.29% 1.16% 0.58% 0.58% 1.45% 0.87% 1.45% 2.61% 3.19% 3.19% 3.48% 1.16% 22.61% 46.96%
Percentage
0.29% 0.29% 0.87% 1.74% 1.74% 2.32% 3.19% 5.80% 5.51% 7.83% 8.70% 21.16% 13.04% 18.26% 19.71%
YELLOW WHITE SILVER RED PURPLE PINK ORANGE METTALIC MAROON GREY GREEN CREAM BLUE BLACK 0 20 40 60 80 100 120 140 160 180
YELLOW WHITE SILVER RED PURPLE PINK ORANGE METTALIC MAROON GREY GREEN CREAM BLUE BLACK
BROWN YELLOW WHITE SILVER RED PURPLE PINK ORANGE METTALIC MAROON GREY GREEN CREAM BLUE BLACK 0 10 20 30 40 50 60 70 80
BROWN YELLOW WHITE SILVER RED PURPLE PINK ORANGE METTALIC MAROON GREY GREEN CREAM BLUE BLACK
Interpretation
The objective behind this question was to ask their favourite and non-favourite colour. This was done to know if there is a general tendency to choose particular colour(s) in favourite and nonfavourite category, by the whole sample. Also the reply to this question was to be compared with
favourite and non-favourite colour of their bikes. Any relationship, if any, between the responses was to be studied. Interestingly, preference and dislike was concentrated to few colours: Favourite colour-Red ( 22.61% ) and Black(46.96% )
(1) Non-favourite colour-Black(21.16%) Blue(13.04%) Yellow(18.26%) Red(19.71%) Red and Black dominated in both favourite and non-favourite categories. May be this is due to the largely religious nature of Indian culture. Indians seem to buy products with religious perspective.
Percentage
0.29% 0.29% 0.87% 0.87% 1.74% 1.74% 2.90% 3.19% 8.70%
Percentage
0.29% 0.29% 0.58% 0.58% 1.93% 1.74% 2.32% 4.06% 7.35%
Red Black
20.00% 59.42%
CREAM BROWN ORANGE MAROON YELLOW WHITE SILVER RED PURPLE METTALIC GREY GREEN BLUE BLACK
COLORS
NO. OF SAMPLES
MC FAVOURITE COLOR
YELLOW WHITE SILVER RED PURPLE PINK METTALIC GREY GREEN BLUE BLACK 0 20 40 60 80 100 120 140 160 180 200 220 YELLOW WHITE SILVER RED PURPLE PINK METTALIC GREY GREEN BLUE BLACK NO. OF SAMPLES
Interpretation
White, Silver, Blue, Red and Black are the main favourite and non-favourite colours on motorcycle. Yellow is one of the top non-favourite colour. Interestingly, the whole world of colours seems wrapped to few chosen colours. Also, the very same very colours which are top favourite are also top non-favourite colours. Black is the overall favourite bike colour. Also, the overall preference for colours in general (question no. 15 & 16) are nearly similar. Thus,
COLORS
motorcycle companies should look into this special relationship between colours and consumer preferences.
Percentage
0.29% 0.29% 0.29% 0.58% 0.87% 1.16% 1.45% 1.45% 4.35% 8.99% 18.55% 61.74%
Interpretation
Red and Black are the major bike-colours with the respondents. Blue comes distant third. Motorcycle-Companies should concentrate on these colours and try to bring as many variants in these colours. Yamaha with its Fazer bikes has successfully launched bikes in red, black and redblack colour. Apart from red, black, blue, silver other colours are negligent in vehicles. This also provides opportunity for companies. They should try and provide some new colours to consumers. Proper market testing should be done. This may throw up some unexpected opportunities.
MODEL COLOR
YELLOW WHITE SILVER RED PURPLE METTALIC MAROON GREY GREEN CREAM BLUE BLACK 0 20 40 60 80 100 120 140 160 180 200 220 YELLOW WHITE SILVER RED PURPLE METTALIC MAROON GREY GREEN CREAM BLUE BLACK
COLORS
NO. OF SAMPLES
MODEL COLOR
YELLOW WHITE SILVER RED PURPLE METTALIC MAROON GREY GREEN CREAM BLUE BLACK 0 20 40 60 80 100 120 140 160 180 200 220 YELLOW WHITE SILVER RED PURPLE METTALIC MAROON GREY GREEN CREAM BLUE BLACK
COLORS
NO. OF SAMPLES
8) Shiny
11) Decent 14) Smart 15) Bright 16) Stylish 21) Sober 26) others
12) Eye Catchy/ Attractive 13) Professional 17)Suits Personality 22) Never Fade 18) Vibrant
please specify: ____________ They were asked to opt for the attributes they think is provided by the colours they chose.
ME
COLORS
FACTORS
Series2 Series1
NO. OF SAMPLES
COLORS
Series1
NO. OF SAMPLES
Sporty Stylish Suits personality Smart Funky Never fade Shiny Unique Youth Sophisticated Maintainance free Professional Attractive Decent Racy Image Rich Bright Safe Macho 0 1 2 3 4 5 6
FACTORS
Series1
NO. OF SAMPLES
Shiny Maintainance Safe Unique Sophisticated Rich Dust free viberant Suits personality Stylish Bright Smart Racy Image Sporty Trendy Youth Macho 0 0.5 1 1.5 2 2.5 3
FACTORS
Series1
NO. OF SAMPLES
6.
Regarding MC Design
Body Style/ Design High Contrast Color Component Color Sticker Design Body Color Riding Comfort
Percentage
1.74% 8.41% 15.07% 21.16% 48.99% 4.64%
Series1 Series2
Top features opted by the respondents wereBody colour, sticker design and component colour. Surprisingly, riding comfort and body style were lower on the count. This may be comprehended as consumers take riding comfort and body design as an accepted, irrefutable offering and they further ask for these aesthetic features. Also since youth is the major market for motorcycles, this shows the demanding preferences of todays younger generation They need bikes to flaunt besides serving the basic biking wants. Thus, to gain larger share of the market companies should focus on these and other innovative aesthetic appeals in the models. Yamaha has lately offered several such innovations. This has resulted in ever greater market share for Yamaha in the Indian market.
percentage
0.87% 1.16% 1.16% 1.45% 1.74% 2.03% 2.03% 2.32% 2.32% 2.90% 3.48% 3.77% 4.93% 4.06% 5.80% 4.35% 5.22%
Model
Achiever Aprilia Caliber Discover 135 Gs150R Intruder KTM990 MT01 Passion Pulsar135 Pulsar200 R6 Rajdoot Splendor Bullet 350 Discover 100 Glamour
Percentage
0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.58% 0.58% 0.58%
The objective behind asking this question was to know the aspirations of consumers. Different segments have different aspirations. There was preference for powerful bikes as well as economical bikes. This can be interpreted as needs and aspirations evolve with age. Also, financial stability along with personality type is also an important consideration. Yamaha has seven bikes in the treasured category. This shows that Yamaha has an avid following amongst the consumers.
Weighted
92 89 101 129 126 110 188 183 190 243 305 326 382 403
NDTV Mtv Aajtak Discovery Star Plus Sony Zee tv ESPN Colors Star Sports Star news HBO Bindaas V Ten sports 0 50 100 150 200
WEAKNESSES
Yamaha has narrow product line in Indian market. Few people are not satisfied with the mileage of the bikes. Not giving promotional schemes for longer time periods.
OPPORTUNITIES
THREATS
CONCLUSION
As the auto industry witnessed yet another year of good sales, there is clear evidence that the dynamics of the Indian two-wheeler industry has changed significantly over the last few years. While everyone knows that there has been constant shift in demand towards motorcycles from geared scooters. Various companies have entered into the two-wheeler industry. There are various competitors of Yamaha comes from Hero Honda. The driver of growth for Hero Honda was the launch of entry level, value-for-money bike CD-Dawn and the upgraded version of Splendor and Passion. The company which had lost its market share in FY02 has made a strong comeback and regained its share. Secondly another company Bajaj is also leading in the two-wheeler in the market. The success Bajajs latest model Pulsar has helped the company to stay clear of adopting an aggressive price reduction strategy. Besides, the recently launched CT100 had also enjoyed a fair degree of success. TVS is also trying to capture the good market share by introducing the different models of bikes. The industry has now acquired the traits of the consumer durable industry, of price wars, celebrity endorsement and ever-increasing sales and promotional out go. Earlier, Hero Honda and Bajaj Auto were the only producers of four-stroke motorcycles. Now, TVS Motor is also jostling for space in the four-stroke market. India Yamaha Motor last year achieved a dramatic turnaround on the back of the success of its 125cc Enticer and 106cc Libero models. IYM is also trying to retain their market share by introducing different bikes. They have launched two bikes in 2004 as change Libero and Fazer. In 2008, they have launched FZ-16 and R15. They have also launched an upgraded version of FZ-16 i.e. FZ-S. Currently, Yamaha have a market share of about 3.5% in the Indian twowheeler market.
RECOMMENDATIONS
Based on research, following recommendations are made to Yamaha Yamaha should expand its FZ series. It should promote newer models. Yamaha is seen as the bike of youth. Also Yamaha is originally considered as the racing bike manufacturer.
Yamaha should sponsor youth festivals. It should consider every contact points that can be made with the youth.
Yamaha should also introduce bikes in the economical range. Poor mileage is seen as the major drawback associated with the Yamaha bikes.
Yamaha should actively consider brand promotions. Yamaha lacks as far as brand promotion is considered compared to other brands.
Yamaha has much favourable position in the minds of consumers as compared to TVS, Suzuki and HMSI. Yet it comes distant fifth in the Indian motorcycle market. It shows lack of consumers confidence. Directed promotions towards this concern should be vigorously held on the national scale.
Company should focus on after-sales service. Proficient service will provide Yamaha a leading edge.
Yamaha should consider and project itself as a service oriented organisation. Today consumers demand effective and prompt continuous service. Yamaha should meet and exceed this want of consumers.
BIBLIOGRAPHY
Statistics for Managers by Levine,Stephan,Krehbiel,Berenson Annual report of the Compny. Marketing Management by Kotler,,Koshy,Jha Strategic Marketing by Anderson,vincze MAGAZINES/NEWSPAPER
Bussiness Today The Financial Express The Tme Of India Company Annual Magazine
QUESTIONNAIRE
a.) _________________
b.)
Bajaj
Yamaha
Hero Honda
TVS
HMSI
Suzuki
Others
3. Which brand you like the most? 1.) Bajaj 2.) Yamaha 3) Hero Honda 4.) Honda 5.) TVS 6.) Suzuki
4. Please specify your source of awareness for motorcycles: 1.) TVCF 2.) Newspaper 3) Magazine 4.) Showroom 5.) Family/ Friends 6.) Internet 7.) Hoardings 8.) Road Show 9.)Others, plz specify..
5. What/Who influenced you more for purchasing a motorcycle? 1.) Friends/Family 2.) Girl Friend 3.) Hoardings 4.) Show off 5.) Personal
8.)Resale value 9)
6. Which company you associate with racing? 1. Bajaj 6.Suzuki 2. Yamaha 3. Hero Honda 4. TVS 5. Honda
7. Which company you strongly associate with youth? 1. Bajaj 2. Yamaha 3. Hero Honda 4. TVS 5. Honda 6.Suzuki
8. Which of the words/statements you think best describes the following companies?
Hero Honda Traditional Advanced Technology Reliable/ worthy High Performance Stylish/ Sporty Trend setter Trust-
Bajaj
Yamaha
TVS
HMSI(Honda) Suzuki
Innovative Good Mileage Passionate 9. You would like to be in which category for the following Motorcycle Brand: Bajaj Yamaha HeroHonda TVS Suzuki HMSI (Honda) 1.)Recommenders 2.) Preferrers
10. Which Brand you will never buy? 1. Bajaj 2. Yamaha 3. Hero Honda 4. TVS 5. HMSI 6.Suzuki
12. Who is the brand ambassador of Yamaha? 1. M.S. Dhoni 2. Hrithik Roshan 3. John Abraham 4. Yuvraj Singh
13. Please write the color name of your favorite & not favorite. Favorite Color _____________ Not Favorite Color _____________________
14. Please write the Motorcycle color name of your favorite & not favorite. Favorite Color _____________ Not Favorite Color _____________________
Present________________
a. What did you choose the above color? (Choose from the below listed Keywords & put on the box according to your priority)
4) Youth
5) Trendy
6) Unique
7) Safe
11) Decent 14) Smart 15) Bright 16) Stylish 21) Sober 26) others
12) Eye Catchy/ Attractive 13) Professional 17)Suits Personality 22) Never Fade 18) Vibrant
Model Name - .
2) Sticker Design
3) Component Color
4) High
Contrast Color 5) Other Please Specify:__________________ Top 3 channels you watch most.. 1.. 2. 3.