Project Yamaha

Consumer Perception On Two Wheelers
CHAPTER 1- INTRODUCTION
East Point Collage Of Higher Education
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INTRODUCTION
In two wheeler markets India has the world second largest Market (after China). In India every month sold nearly 3-lakh motor cycle. The two- wheeler industry is among the few that have Managed to face the industrial slow down. The industry's impressive growth of over 10% for four year till 2006-07. But in 2007-08 there was a drop in agricultural output. But a boost comes in the 6th Pay commission recommendation. After year of cursing along at fairly relaxed pace, two wheeler industry has finally stepped on the accelerator & swayed its way timely in to the first lane. All the major players in the market including YAMAHA ,BAJAJ AUTO, HERO, HONDA,TVS ,SUZUKI, ESCORT,ROYAL ENFIELD, KINETIC , work over time to grab slice of two-wheeler pie as possible, the market is suddenly roaring for action. Over a period of more than two decades the Indian Automobile industry has been driving its own growth through phases. The entry of Suzuki Corporation in Indian passenger car manufacturing is often pointed as the first sign of India turning to a market economy. Since then the automobile sector witnessed rapid growth year after year. By late-90 the industry reached self reliance in engine and component manufacturing from the status of large scale importer. With comparatively higher rate of economic growth rate index against that of great global powers, India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With the Indian middle class earning higher per capita income, more people are ready to own private vehicles including cars and two- wheelers. Product movements and manned services have boosted in the sales of medium and sized commercial vehicles for passenger and goods transport. Side by side with fresh vehicle sales growth, the automotive components sector has witnessed big growth. The domestic auto components consumption has crossed rupees 9000 crores and an export of one half size of this figure
Overview Of Automobile Industry

The Indian automobile industry is going through a technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years. As per Society of Indian Automobile Manufacturers (SIAM) the market share of each segment of the industry is as follows: East Point Collage Of Higher Education Page 2
The automobile industry had a growth of 15.4 % during April-January 2007, with the average annual growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the growth is expected to double in the next 10 years. Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia. The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered to the customers needs to a large extent. Not only the Indian companies but also the international car manufacturing companies are focusing on compact cars to be delivered in the Indian market at a much smaller price. Moreover, the automobile companies are coming up with financial schemes such as easy EMI repayment systems to boost sales. There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the technological advancements. Besides, there are many new projects coming up in the automobile industry leading to the growth of the sector. The Government of India has liberalized the foreign exchange and equity regulations and has also reduced the tariff on imports, contributing significantly to the growth of the sector. Having firmly established its presence in the domestic markets, the Indian automobile sector is now penetrating the international arena. Vehicle exports from India are at their highest levels. The leaders of the Indian automobile sector, such as Tata Motors, Maruti and Mahindra and Mahindra are leading the exports to Europe, Middle East and African and Asian markets. The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of making India the most popular manufacturing hub for automobiles and its components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as well as international arena
Marketing
Marketing deals with identifying and meeting human and social needs. The shortest definition of marketing is meeting needs profitably.
Definition
The American Marketing Association offers the following formal definition: Marketing is an organizational function and a set of processes for creating, communicating , and delivering value East Point Collage Of Higher Education Page 3
to customers and for managing customer relationships in ways the benefit the organization and its stake holders. The social definition that serves our purpose is Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. According to Peter Drucker: Marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Marketing should result in a customer who is ready to buy.
Importance of Marketing
Financial success often depends on marketing ability. Finance, operation, Accounting and other business functions will not really matter if there is not Sufficient demand for products and services so the company can make a profit. There must be top line for there to be a bottom-line. Many companies have now created a Chief Marketing Officer, or CMO, position to put marketing on a more equal footing with other C-level executives such as a Chief Executive Officer (CFO). Press releases from organizations of all kinds-from consumer goods makers to health care insurers and from none=profit organizations to industrial product manufacturers-trumpets their latest marketing achievements and can be found on their Web sites. In the business press, countless articles are devoted to marketing strategies and tactics. Marketing is tricky however and it has been the Achilles heel of many formerly prosperous companies. Large, well-known businesses such as Sears, Levis, General Motors, Kodak, and Xerox have confronted newly empowered customers and new competitors, and have had to rethink their business models. Even market leaders such as Microsoft, Wal-Mart, Intel, and Nike recognize that they cannot afford to relax. Jack Welch, GEs brilliant former CEO, repeatedly warned his company: Change or die But making the right decisions is not always easy. Marketing managers must make major decisions such as what features to design into a new product, what prices to offer customers, where to sell products, and how much to spend on advertising or sales. They must also make more detailed decisions such as the exact wording or color for new pack-again. (The Marketing Memo: Marketers Frequently Asked Questions is a good check-list for the questions marketing managers ask, all of which we examine the companies at greater risk are those that fail to carefully monitor their customers and competitors and to continuously improve their values offerings. They take a short-term, sales-driven view of their business and ultimately, they fail to satisfy their stockholders, their employees, their suppliers, and their suppliers, and their channel partners. Skillful marketing is a never-ending pursuit. East Point Collage Of Higher Education Page 4
Marketing has the task of influencing the level, timing, and composition of demand in a way that will help the organization achieve its objectives. Marketing is the company function charged with defining customers targets and the best way to satisfy their needs and wants competitively and profitably. Marketing contributes to improved performance in the market place. It helps in an efficient and productive utilization of resources, both human and materials, by eliminating wastages. Marketing plays an important role in the economic growth an overall development of the nation. It raises the standard of living and helps the organization in the achievement of its social responsibilities. It helps the organization to adapt to the changing conditions and environment. Marketing results in maximum efficiency, productivity and profitability with the minimum effort and cost. It guides the organization on the innovations to be adopted, enabling it to face competition more safely.
The Marketing Concept

The marketing concept emerged in the mid-1950s. Instead of a product-centered, make-andsell philosophy, business shifted to a customer-centered. Sense -and-respond philosophy. Instead of hunting, marketing is gardening. The job is not to find the right customers for your products, but the right products for your customers. The ,marketing concept holds that the key to achieving organizational goals consist of the company being more effective rhea competitors in creating, delivering, and communicating superior customer value to its chosen target markets. Theodore Leavitt of Harvard drew a perceptive contrast between the selling and marketing concepts: selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the sellers need to convert his production into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it. Several scholars have found that companies who embrace the marketing concept achieve superior performance. This was first demonstrated by companies practicing a reactive market orientation-understanding and meeting customers expressed needs. Some critics say this means companies develop only low-level innovation is possible if the focus is on customers latent needs. He calls this a proactive marketing orientation. Companies such as 3M, HP and Motorola East Point Collage Of Higher Education Page 5
have made a practice of researching or imagination latent needs through a probe-and-learn process. Companies that practice both a reactive and proactive marketing orientation are implementing a total market orientation and are likely to be the most successful. In the course of converting to a marketing orientation, a company faces three hurdles: organized resistance, slow learning and first forgetting. Some company departments (often manufacturing, finance, and R&D).believe a strong marketing function threatens their power in the organization. Initially, the marketing function is seen as one of several equally important functions in a checkand-balance relationship. Marketers argue that their function is more important. A few enthusiasts go further and say marketing is the major function of the enterprise, for without customers there is no company. Enlightened marketers clarify the issue by putting the customer at the center of the company. They argue for a customer orientation in which all functions work together to respond to, serve, and satisfy the customer.
Marketing Management
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
Marketing Information
Marketing information is the collection, communication and interpretation of such information as, the number of customers and their locations, their purchasing power, their product and brand preferences, their motivation and so on.
The Nature and Scope of marketing

Marketing centers around the consumer: - Marketing thinking starts with the fact of human needs and wants. Marketing begins and ends with the customer: - Marketing starts even before the actual product begins. Marketing forms the foundation of product innovation and conception. Marketing is the guiding element of business: - Marketing a trade play vital role in the economic growth and overall development of a nation. Its aim is reach customers at a maximum speed with mini mum cost.
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Marketing is a system: - Marketing is an ongoing and dynamic process involving a set of interacting and interrelated activities to reach the customer. It receives inputs from the customers in the form of valuable information and processes this information to supply the desired products/services to satisfy consumer needs. Marketing is a goal oriented process: - The basic aim of marketing is to generate profits along with customer satisfaction. Increase in sales volume, higher profits and considerable growth are the objectives of marketing along with social objectives. Marketing is a process of exchanges: - Marketing emerges when people decide to satisfy needs and wants through exchanges. Exchanges are the act of obtaining a desired product from someone by offering something in return. Marketing management has experienced a number of shifts in recent years as companies seek marketing excellence.
SERVICE MARKETING:
A service is any or performance that one party can offer to another that is essentially intangible and does no result in the ownership of anything. Its production may or may not be tied to a physical product." A company's offer to the marketplace often includes some services. The service component can be a minor or a major part of the total offer. Five categories of offer can be distinguished.
Pure tangible good: The offer consists primarily of tangible good such as soap toothpaste.
Tangible goods with accompanying service: The offer consists of a tangible good accompanied by one more services to enhance its consumer appeal.
Hybrid: The offer consists of equal parts of goods and services.
Major Service with accompanying minor goods and services: The offer consists of a major service along with additional services and / or supporting goods.
Pure service: East Point Collage Of Higher Education Page 7
The offer consists primarily of a service. Service quality is defined as the gap between the consumers' expectations and perceptions;
that is, the quality of a service will be rated high when the service delivered exceeds the consumer's expectations, and it will be rated poor when it does not meet them. Value: Value is the consumer's estimate of the product's overall capacity to satisfy his or her needs. According to DeRose - Value is "the satisfaction of customer requirements at the lowest possible cost of acquisition, ownership and use". Customers estimate which offer will deliver the most value, they re value - maximizes, within the bounds of search costs and limited knowledge, mobility and income. They form an expectation of value and act on it. The offer whether lives up to the value expectations affects customers' satisfaction and the repurchase probability. Different buying motivations (convenience, status, style, features, service, etc.,) play a strong role at different times and places. Today's customers are playing greater weight on quality and value in making their purchase decisions. Some remarkable companies are managing to increase their quality greatly while bringing down their costs. Their guiding principle is to continuously offer more for less. The aim of marketing is to meet the satisfied target customer meets and wants. The field of Consumer perception and performances. Studies how individuals, groups and organization select, by use and dispose goods, service, ideas or experiences to satisfy their needs and desires. Knowing customers are never simple. Customer may say to one thing and doing to another. They may not be in touch with their deeper motivates. They may respond to influence that change their mind at the last minute. Small companies as well as huge corporations stand to profit from understanding how and why their consumers buy. Consumers perception and preferences influence the customer behavior. Consumer behavior consists of all human behavior that go in making purchase decisions.However, consumer behavior related to an individual while consumption behavior refer to aggregate of individuals. The basic step that needs to be taken by a fine in order to implement that making concept is to focus all its attention on the consumer needs and desires before connecting its resources to produce and distribute products and services. The consumer is said to be the boss or king.
Consumer & Customer

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Although the terms consumer and customer are almost same and link to each other, but there are some different between them. Consumer is the end user of the product and the services.Wheras the consumer is only an intermediate user who adds further value to the product of services before it is consumed by the end user. If a person purchased a product and uses it. He is both customer as well as consumer of the product. In short customer are the buyer and consumer are the users.
Perception
Perception is the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world. A stimulus in any unit of input to any of the senses. Examples of stimuli (i.e. sensory input) include products, packages, brand names, advertisements and commercials. Perception varies individual to individual. In short perception can be described as how we see the world around us.
Factors influencing consumer perception and preferences

Consumer perception and preferences are influence by four factors:-
I.
Cultural factors:Cultural factors exert the broadest and deepest influence on consumer behavior. Cultural factors are further subdivided into buyers cultural, sub cultural & social class.
A. Cultural
Is the most fundamental determined of a persons wants & the behavior? The growing child acquires asset of values, perception performance and behavior through his or her Family and other key in situation.
B. Sub cultural
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Each culture consist of smaller sub cultures that provide more specific identification and socialization for its members sub cultural include nationalities, religions, racial, groups and geographical regions. Many sub cultures make up important market segments and marketers often designing products and marketing programs tailored to their needs.
C. Social Classes
Are relatively homogenous and enduring divisions in a society, which is hierarchically ordered and whose members share similar values, interests and behavior. Social classes show distinct product and brand preferences in such areas as dothing, home furnishings leisure activities and automobiles? There are also language differences among the social classes. The advertiser has to compose copy and dialogue that ring true to the targeted social class.
2. Social Factors:
A consumer behavior is also influenced by such social factors as reference groups, family and social roles and status.
A). Reference groupsMany groups influence a persons behaviors person reference group consists of all the groups that have a direct or indirect influence on the persons attitude or behavior. Groups having a direct influence on a person are called membership groups. These are groups to which the person belongs and interacts. Some are primary gulps such as family, friends, neighbors and co-workers with whom the person interacts family and continuously. A person also belongs or secondary groups, such as religious, professional and trade union groups expose an individual to new behaviors and lifestyles.
b). Roles and Statuses:

A person participates in many groups throughout life-family, clubs; organizations. The persons position in each group can be defined in terms of roles and statuses. People choose products that communicate their role and status in society.
3. Personal Factors:
A buyers decision is also influenced by personal characteristics, notably the buyers age and life cycle stage, occupation economic circumstances, lifestyle and personality and self concept.
A). Age and life cycle stage:

People buy different goods and services over their lifetime. They eat baby food in their early years, most foods in the growing and mature years and special diets in the later years. Peoples taste in clothes, furniture and recreation is also age related. Consumption is also shaped by the stage of the family lifecycle. Marketers often choose life cycle groups as their target market.
b). Occupation:
A persons occupation also influences his or her consumption pattern. Marketers try to identify the occupational groups that have above-average interest in their products and services. A company can even specialize their products for certain occupational groups.
c). Economic Circumstances:

Product choice is greatly affected by ones economic circumstances. Peoples economic circumstances consist of their spend able income(its level, stability, and time pattern),savings and assets, debts, borrowing power and attitude toward spending versus saving. Marketers of income-sensitive goods pay constant attention to trends in personal income, savings, and interest rates.
d). Personality and self Concept

Each person has a distinct personality that will influence his or her buying behavior. By personality, we mean that persons distinguishing psychological characteristics that lead to relatively consist and enduring response to his or her environment. Many marketers use a concept related to personality and persons self concept. Marketers try to develop brand images that match the target marketers self image
4. Psychological Factors:
A). Motivation:
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A person has many needs and at any given time some needs are biogenic. They arise from physiological states of tension such as hunger, thirst, discomfort .Other needs are psychogenic. They arise from psychological states of tension such as the need for recognition, esteem, or belonging. Most psychogenic needs are not intense enough to motivate the person to act on them immediately. A motive is a need that is sufficiently pressing to drive the person to act. Satisfying the need reduces the felt tension. According to Malsow , human needs are arranged in a hierarchy, from the most pressing to the least pressing. In their order of importance, they are physiological needs safety needs, social needs, esteem needs and self actualization needs.
b). Learning:
Learning theorists say that a persons learning is product through the interplay of drives, stimuli, cues, responses, and reinforcement Learning theory teaches marketers that they can valid up demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement.
c). Beliefs and Attitudes:

Through doing and learning, people acquire beliefs and attitudes .These, in turn, influence their buying behaviors belief is a descriptive thought that a person holds about something. An attitude describes persons inducing favorable or unfavorable cognitive evaluations, emotional feelings, and action tendencies toward some object or idea. Attitude lead people to behave in a fairly consistent way toward similar objects .Research into all these factors can provide clues as to how to reach and serve customers or consumers more effectively.
Consumer characteristics effecting perception

The internal factors effecting perception: 1. 2. 3. 4.
Selective attention Selective exposure Selective reception, Comprehensive and retention Perceptual vigilance or defense Page 12
5. Expectation 6. Subliminal perception External Factors: 1. Intensity and size 2. Position 3. Contrast 4. Novelty 5. Repetition 6. Movement Consumer perception pattern and results
Consumer perception and preferences has strategy implications for markets, because consumers make decisions based on what they perceive or prefer rather than on the basis of objective reality.
Characteristics of the Perceivers 1. 2. 3. 4. 5. 6. 7.

Ones needs and motives Ones beliefs Ones past experience Ones expectations Current psychological state Self concept Situation
The lower level at which an individual can perceive a specific stimulus is that persons absolute threshold. The minimum difference that can be perceived between two stimuli is called the differential threshold or just noticeable difference. Most stimuli are perceived by consumers where the level of there conscious awareness how ever, weak stimuli can be perceived below level of conscious awareness. Research does not support the contention the sub luminal stimuli affect consumer buying decision.
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Consumer selections of stimuli from environment are based on the interact of their expectations and motives with the stimuli itself. The principle of selective perception includes the following concept:
1. 2. 3. 4.
Selective exposure Selective attention Perceptual defense Perceptual blocking
People usually perceived things they need or want and block the perception of necessary, unfavorable or painful stimuli consumers organize their perception into unified wholes according to the principle or Gestalt psychology. I.e. Figure and ground, grouping and closure. The interpretation of stimuli is highly subjective and is based on what the consumer expects to see in light of previous experience on the number of plausible explanation he or she can envision on motives and interest at that time of perception and on the clarity of the stimuli it self. Influences that tend to distort objective interpretation include physical appearances stereotypes halo effect, irrelevant case, first impression, and tendency to jump to conclusions. Just as individuals have perceived images of themselves. They also have perceived images of products and brands. The perceived image of the product or services (I. e. its symbolic meaning) Is probably more important to its ultimate success than are its actual physical characteristics. Products and service that are perceived favorable have or much better change of being purchased than the products or services with unfavorable or neutral image. Compare with manufacturing firms, Services market face several unique problems in positing and promoting there offering, including the service characteristics,(e.g.: Services are intangible, variable, perishable) and are simultaneously product and consume regardless of how well positioned a product or service appears to be, the marketer may be forced to reposition it in response to market events, such as new Competition strategies or change in Consumer performance. Consumer often judges the quality of the product or services on the basis of the variety of informational cues. Some are intrinsic to the product (of price, store, image, brand image, service East Point Collage Of Higher Education Page 14
and environment). In the absence of direct expenses or other in-promoting, consumer often relies on price as an indicator of quality. The image of retail stores influence the perceived quality of product they, as well as the decision of consumer as to where to stop. Consumer imaging extend beyond perceived price and store image to the producer themselves. Manufacturers who enjoy to favorable image generally find to their new products are accepted more rapidly than those of manufacturer with less favorable or even neutral images. A consumer often perceives risk in making product selection because of uncertainly as to the consequence of their product decisions. The frequent types of risk that consumers perceive are functional risk, physical risk, financial risk, social risk, psychological risk and time risk. Consumer strategies for reducing perceivers risk include increase information search brand loyalty, buying a well known brand buying from a repeated retailers buying the most expensive brand, and seeking reassurances in the form of money back guaranties, warranties and prepurchase trials. The concept of perceived risk has importance implications for marketers, who can facilities the acceptance of new products by incorporating risk reduction strategies in their new product promotional campaigns .
Strategy
Strategy is the game plan developed by a company for each of its businesses to achieve its long run objectives in the light of its industry position, opportunities, skills, and resources.
Strategic planning
Strategic Planning is the managerial process of developing and maintaining a viable fit between the organizations objectives in the light of its industry position, opportunities, skills, and resources and its changing market opportunities. There are two types of marketing strategies within the framework of imperfect competition:Product differentiation. - The method of introducing of differential product on the basis of differential features or products attributes, quality or brand image and after sales service for commanding a better price from the consumers is called product differentiation. The basic East Point Collage Of Higher Education Page 15
objective of product differentiation is to establish products which are different, distinctive or even unique in the way that they match custom needs compared to other existing products or brands available in the market. Maruti cars, Dove soap, Ariel detergent, Timex watches and ONIDA Co lour TV are examples of product differentiation. Market segmentation:-Market segmentation is the act of identifying and profiling distinct groups of buyers who might require separate products and /or marketing mixes. The basic objective of market segmentation is to serve not all but preferably a section of the market more effectively for best mutual benefit for consumers and sellers. General Motors, Ford Motors, Proctor and Gamble, and BASF companies often large range of products or brands to their highly segmented markets.
Product of Offering:
People satisfy their needs and wants with their products. A product is any offering that can satisfy a need or want. We mentioned earlier the major types of basic offering, goods, services, experiences, events, persons, places, properties, organizations, informations , and ideas. A brand is an offering from a known, source. A brand name such as McDonalds food, golden arches. These associations make up the brand image. All companies strive to build brand strength that is a strong, favorable brand image.
Value and Satisfaction:

The product or offering will be successful if it delivers value and satisfaction to the target buyers. The buyer chooses between different offerings on the basis of which is perceived to deliver the most value. We define value as a ratio between what the customer gets and what he gives. The consumer gets benefits and assumes cost. The benefits, the cost includes monetary cost, time cost, energy cost and psychic cost. Thus value is given Value =Benefit/cost =Functional benefits + emotional benefits/monetary cost+ time cost+ energy cost +psychic cost.. The marketers can increase the value of the customers offering in several ways. Raise benefits. Reduce cost. Raise benefits and reduce cost. Raise benefits by more then the raise in cost. Lower benefits by less than the reduction in cost. East Point Collage Of Higher Education Page 16
The customer who is choosing between two value offerings V1 & V2 will examine the ratio V1/V2. She will favor V1 if the ratio is larger than one, she will favor V2 if the ratio is smaller than one, and she will be indifferent if the ratio equals one.
Marketing Channels:
To reach a target market, the marketers use three kinds of marketing channels. The marketers use columniations channels to deliver and receive messages from target buyers. They include newspapers magazines, radio, T.V, mail, telephone, billboards, poster, Cads, audiotapes and the internet. Beyond these, communications are conveyed by facial expressions and clothing the look for retail stores, and many other media. Marketers are increasingly adding dialogue channels (email and toll free numbers) to counter balance the mere normal monologue channels (such as ads). The marketer uses distribution channels to display or deliver the physical product or services to the buyer or user. They are physical distribution channels and services distribution channels. They include warehouses transportation vehicles and various trade channels such as distributors, wholesalers, and retailers. The marketer also uses selling channels to effect transactions with potential buyers. Whereas marketing channels connect the marketer to the target buyers, the supply chain describes a longer channels stretching from raw materials to components to final products that are carried to final buyers. The supply chain for womens purses start with hides training operation, cutting operations, manufacturing, and the manufacturing channels bringing products to customers. The supply chain represents a value generated by the supply chain. When a company acquires competitors or moves up stream or downstream its aim it to capture a higher percentage of supply chain value.
COMPETITION
Competition includes all the actual and potential rival offerings and substitutes that a buyer might consider. Suppose an automobile company is planning to buy steel from U.S steel or other integrated steel mills in the U.S or abroad, or go to mini such a Nucor to buy steel at a cost savings or buy aluminum for certain parts of the cars to lighten the cars weight or buy engineered plastics for hamper instead of steel.
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Clearly U.S steel would be thinking too narrowly competition if it thought only of other integrated steel companies. Infect U.S steel is more likely to be hurt in the long run by substituted products than by its immediate steel company rivals. U.S steel also must consider whether to make substitute products or stick only to those applications where steel offers superior performance. We can distinguish four levels of competitions based on degree of products unsuitably.
1. Brand competition: a company sees its competitors as other companies offering a similar
product and services to the same consumers at similar prices.
2. Industry competition: a company sees its competitors as all companies making the same
product or class of product.
3. Form competition: a company sees its competitors as all companies manufacturing

products that supply the same service.
4. Generic competition: a company sees its competitors as all companies that compete for the
same consumers dollars.
5. Marketing Environment:
Competition represents only one force in the environment in which the marketer operates. The marketing environment includes the immediate actors involved in producing distributing and promoting the offering. The main actors are the company, suppliers, distributors, dealers, and the target customers. Includes in the suppliers such as marketing research agencies, banking and insurance companies, transportation and telecommunication companies include with distributors and dealers are agents brokers, manufacturer , representatives, and other who facilitate findings and selling to customers. The broad environment consists of six components, 1. Demographic environment. 2. Economic environment. 3. Natural environment. 4. Technological environment. 5. Political environment. 6. Socio-cultural environment.
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These environments contain forces that can have a major on the actors in the task environment. Market actors must play close attention to the trends and developments in these environments and make adjustments to timely adjustments to their marketing strategies.
IMPORTANCE OF 4Ps IN MARKETING

Once the customer needs or wants are determined, the marketer has to satisfy them. The first aspect of this implementation is the product itself, which is the ultimate basis for the customers to determine whether his or her needs are being met. The marketer must, therefore, match the product as closely as possible to those needs. This may be accomplished by offering a tailor made existing product by radically changing the product by modifying its features or its packaging or even by describing the product in a different way. The second aspect is the delivery system the producer must get the product within reach of customers in a timely manner. Third the customer must to communicate with the customer and persuade the customer to purchase the product, perhaps by using and advertisement. Fourth the product must be priced right so that the customers can afford it and is willing to choose it from among competing offer. These separate aspects may be categorized in a no. of ways. One customary framework is 4p: product, price, place and promotion.
PRODUCT
Product refers to the product related elements and includes both goods and services. A product maybe defined as everything both favorable and unfavorable that a person receives in an exchange. A product may be tangible goods alike a pair of shoes, or services like a haircut, and ideas like dont litter or any combination of these three. Packaging style co lour options and size are some typical product features. Just as important are intangible such as services, the sellers image the manufacturers reputation and the way consumers believed others will view that product. Price is split off and elements worth of separate consideration, although this may overemphasize its importance.
PRICE
Although this may overemphasize its importance. Price is the key to revenues, which in turn is the key to profits for an organization. Revenue is the price charged to customers multiplied by the no of units sold. Revenue is what pays for every activity of the company, production, finances, sales, distribution and so on. Whats left over is profit. Managers usually strive to charge a price the will earn as fair profit.
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To earn profit managers must choose a price that is not too high or too low. A price that equals the perceived value will be less than the cost. Lost sales mean lost revenue. Conversely if a price is too low, it may be perceived great value for the consumer but the firm loses revenue it could have earned.
PLACE
Place refers to delivering the product to the customer to consume it. This term includes channels of distribution, transportation, warehousing, and inventory control. In marketing mix place has a great impact. Manufacturers work doesnt stop after producing a product and set a price for it. They should send the product the final consumer. Without this there is no use of producing goods or services.
PROMOTION
Promotion to delivering the message to the consumer about the product. The P covers advertising, personal selling, sales promotion, publicity, public relations exhibition and demonstration used in promotion. This system of announcement of the commonsense of the product in the market to help of the potential consumer to learn about the product. It is also important like product, price and place in the marketing mix. The 4ps offer just one, albeit frequently used, approach to marketing. Some pundits propose just two factors the offering (product and price) and the methods and tools (including distribution and promotion). Still others argue for the need to subdivide these categories further, differentiating. For e.g. between sales and advertising as forms of promotion. Perhaps the most significant criticism of the four Ps approach is that it emphasizes the inside our view instead of the outside in approach. Nevertheless, the 4p offer a memorable useful to the major categories of marketing activity as well as framework with in which they can be used.
BRAND EQUITY AND ADVERTISING

A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Brand equity:
Brands vary in the amount of power and value they have in the market place. At one extreme are brands that are not known by most buyers. Then there are brands for which buyer has a fairly high degree of brand awareness. Beyond this are brands with a high degree of brand acceptability. East Point Collage Of Higher Education Page 20
Then there are brands that enjoy a high degree of brand preference. Finally there is brand that commands a high degree of brand loyalty. Says Aakar. My acid test is whether a housewife intending to buy Heiny tomato ketchup a store, finding it to be out of stock will walk out of the store to buy it elsewhere. Few customers are as brand loyal. Aaker distinguished levels of customer attitude towards his or her brand, from lowest to highest. 1. 2. 3. 4. Customer will change brands. Especially for price reasoned. No brand loyalty. Customer is satisfied. No reason to change the brand. Customers value the brand and see it as friend. Customer is devoted to the brand.
Brand equity is highly related to how many customers are in classes 3, 4 or 5. It is also related according to Aaker, to the degree of brand name reconviction, perceived brand quality, strong mental and emotional associations, and other assets such as patents, trade marks and channel relationships. . High brand equity provides a number of competitive advantages: 1. The company will enjoy reduced marketing costs because of consumer brand awareness and loyalty. 2. The company will have more trade leverage in beginning with distributors and retailers because customers expect them to carry the brand. 3. The company cans chare a higher price than its competitors because the brand has higher perceived quality. 4. The company can more easily launch extension because the brand name high credibility. 5. The brand offers the company some defense against price competition. A brand name needs to be carefully managed so that its equity doesnt depreciate. This requires maintaining or improving brand awareness perceived quality and functionality and positive associations. These tasks require continuous R&D investments, skilled advertising, and excellent trade & consumers service. Canada Dry and Colgate Palmolive have appointed brand equity managers to guard the brands image association and quality and managers from hurting the brand. Thats why some companies put their branding in the brands of an entirely different company that can focus only on brand management and nothing else.
Advertising:
Advertising is any paid from of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertisers include not only business firm bit also museums, charitable organization and got agencies that direct message to target public. Ads are a cost effective way to disseminate messages, whether to build preference for coca-cola or to educate people to avoid hard drugs. Organization handles these advertising in different ways. In small companies someone handles advertising in the sales or marketing department, who works with an advertising agency. A large company will have then set up its own advertising department, whose manger reports to the vice president of marketing. The advertising departments job is to propose ads and campaigns and handle direct mail advertising, dealer displays and other forms of advertising. Most companies use an outside agency to help create advertising campaigns and to select and purchase media. In developing a program, marketing managers must always start by identifying the target markets and buyers motives. Then they can make the 5 major decisions in developing and advertising program. Known as the five MS: Mission what are the advertising objectives? Money: how much can be spent? Message: what messages should be spent? Media: what media should be used? Measurement how should the result be evaluated?
DISTRIBUTION CHANNELS
Too many US manufacturers think their job is done once the product leaves the factory. They should pay attention to hew the product moves within in the foreign country. They should take a whole channel view of the problem of distribution products to final users. The figure shows the three major links between sellers and ultimate users. In the first link sellers international marketing headquarters the export department or international divisions makes the decision, makes the decisions on channels and other marketing mix elements. The second link channels between nations get the product to the boarders of the foreign nations. The decisions made in the link include the type of intermediaries (agents, trading companies) that will be used, the type of transportation (air, sea) and the financing and risk arrangements. The third link channels within foreign nations get the products from their entry point to final buyer and users. SELLER
SELLERS International marketing Headquarters
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CHANNELS Between nations
CHANNEL Within foreign nations FINAL BUYER
BUYER BEHAVIOUR
Right from the time there has been exchange of goods and services between the buyers and sellers, the ultimate success of all economic activities has primarily depended on the producer manufacturing and selling goods and services desired by the target consumer. The ultimate decision of whether or not to purchase a product or services and from whom to buy has always been vested in the hands of the final consumers. The study of consumer behavior is comparatively a new research field. Basically human beings have been sociable in nature and their buying decision for freedom of choice is determined by the influence of the individual consumer and the society in question. A consumer market can be defined as all the individuals and households who buy goods and services for personal consumption. This means are the persons and primarily to families, which will purchase either goods or services for personal and primarily to families, which will purchase either goods or services for personal consumption can be said to be a part of the consumer market. Consumer behavior can be defined as all psychological social and physical behavior of all potential consumers as they become aware of evaluate purchase consume and tell others about the products and services. A consumer buying behavior is influenced by cultural, social, potential and psychological factors. Cultural factors exert the broadcast and deepest influences. Marketers have to go beyond the various influences on buyers and develop and understanding of how consumers actually make their buying decisions. Epically marketers must identify who makes the buying decisions, the types of buying decision and the steps in the buying process. East Point Collage Of Higher Education Page 23
We can distinguish five roles people might play in a buying decision: 1. Initial- A person who suggest the idea of buying the product or services. 2. Influencer- A person whose view or advice influences the decision. 3. Decider- A person who decides on any component of a buying decision. Whether to buy, how to buy or where to buy. 4. Buyer- A person who makes the actual purchase. 5. User- A person who consumers or users the product or services. Assail distinguished four types of consumers buying behavior based of the degree of buyer involvement and the degree of differences among brands.
Complex buying behavior:

This process involves a 3-steps process; first the buyer develops beliefs about the product. Second the consumer develops attitudes about the product. Third the consumer makes thoughtful choices. Consumers engage in complex buying behavior when they are highly involved in a purchase and aware of significant differences among brands. This is usually the case when the product is expensive, brought infrequently, risky and highly self expensive.
Habitable buying behavior:

Consumer has little involvement in this product category. If the consumer keeps reaching for the same brand, it is out of habit not strong brand loyalty. With low cost products, consumers behavior does not pass through the normal sequence of belief, attitude, and behavior. Consumers do not search extensively of information evaluates characteristics and makes a decision on which brand to buy. Instead they are passive receipts of information in television or print ads. Ad repetition creates brand familiarity rather than brand conviction.
Variety seeking buying behavior:

Some buying situations are characterized by low involvement but significant brand differences. Here consumers often do a lot of brand switching. The consumer array reaches for another brand out of a wish for a different taste. Brand switching occurs for the sake of variety rather than dissatisfaction.
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CHAPTER 2: INDUSTRY PROFILE
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AUTOMOBILE INDUSTRY
An automobile or motor car is a wheeled motor vehicle for transporting passengers; which also carries its own engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the transport of people rather than goods However, the term is far from precise because there are many types of vehicles that do similar tasks. Automobile comes via the French language, from the Greek language by combining auto with mobilis [moving]; meaning a vehicle that moves itself, rather than being pulled or pushed by a separate animal or another vehicle. The alternative name car is believed to originate from the Latin word carrus or carrum [wheeled vehicle], or the Middle English word carre [cart] (from Old North French), and karros; a Gallic wagon An automobile powered by his own four-stroke cycle gasoline engine was built in Mannheim, Germany by Karl Benz in 1885 and granted a patent in January of the following year under the auspices of his major company, Benz & Cie., which was founded in 1883. It was an integral design, without the adaptation of other existing components and including several new technological elements to create a new concept. This is what made it worthy of a patent. He began to sell his production vehicles in 1888. In 1879 Benz was granted a patent for his first engine, which had been designed in 1878. Many of his other inventions made the use of the internal combustion engine feasible for powering a vehicle.Since the 1920s, nearly all cars have been mass-produced to meet market needs, so East Point Collage Of Higher Education Page 26
marketing plans often have heavily influenced automobile design. It was Alfred P. Sloan who established the idea of different makes of cars produced by one company, so buyers could "move up" as their fortunes improved.
INDIAN AUTO MOBILE INDUSTRY
The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as Asia's third largest exporter of passenger cars, behind Japan and South Korea beating Thailand. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.
Development
In 1953, the government of India and the Indian private sector initiated manufacturing processes to help develop the automobile industry, which had emerged by the 1940s in a nascent form. Between 1970 to the economic liberalization of 1991, the automobile industry continued to grow at a slow pace due to the many government restrictions. A number of Indian manufactures appeared between 1970-1980. Japanese manufacturers entered the Indian market ultimately
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leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. Following the economic reforms of 1991, the automobile section underwent delicensing and opened up for 100 percent Foreign Direct Investment. A surge in economic growth rate and purchasing power led to growth in the Indian automobile industry, which grew at a rate of 17% on an average since the economic reforms of 1991. The industry provided employment to a total of 13.1 million people as of 2006-07, which includes direct and indirect employment. The export sector grew at a rate of 30% per year during early 21st century. However, the overall contribution of automobile industry in India to the world remains low as of 2007. Increased presence of multiple automobile manufacturers has led to market competitiveness and availability of options at competitive costs.]India was one of the largest manufacturers of tractors in the world in 2005-06, when it produced 2,93,000 units. India is also largely self-sufficient in tyre production, which it also exports to over 60 other countries. India produced 65 million tyres in 2005-06. Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent the automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992&1997.
With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.
Automobile Production
Type of Vehicle
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
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Passenger Vehicles
1,209,876 1,309,300 1,545,223 1,777,583 1,838,697
Commercial Vehicles 353,703
391,083
519,982
549,006
417,126
Three Wheelers
374,445
434,423
556,126
500,660
501,030
Two Wheelers
6,529,829 7,608,697 8,466,666 8,026,681 8,418,626
Total
8,467,853 9,743,503 11,087,997 10,853,930 11,175,479
The Key factors Behind This Upswing

Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the Cost of inputs such as steel are the key concerns for the players in the industry .
As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies . The auto component sector has also posted significant growth of 20 per cent in 2003-04, to achieve a sales turnover of Rs.30, 640 crore (US$ 6.7 billion). Further, there is a potential for higher growth due to outsourcing activities by global automobiles giants. Today, this sector has emerged as another sunrise sector
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EVEN GROWTH
Indias car market has emerged as one of the fastest growing in the world. The number of cars sold domestically is projected to double by 2010, and domestic production is skyrocketing as foreign makers are setting up their own production plants in India. The governments 10-year plan aims to create a $145 billion auto industry by 2016. According to McKinsey, the auto sectors drive to lower costs will push outsourcing. The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002. McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian suppliers, 80 percent have the ISO 9000 certificatethe international standard for quality management.
Opposing the belief that the growth in automobile industry has catered only to the top incomestratum of society, Growth of exports of 32.8 % in the first three quarters of 2004-05, the fastest growth in volumes has come from commercial vehicles as against passenger cars .
The production of automobiles in India is largely aimed at local consumers. Several Indian manufacturers also export a diverse variety of auto components. Tiku (2008) predicts a sale of 4.2 million four wheeler automobiles in India by 2015. Indian passenger vehicle exports are also expected to rise from 170,000 in 2006 to 500,000 in 2010.
Major Manufacturers in Automobile Industry

Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco Page 30
TVS Motors DC Designs Swaraj Mazda Ltd BMW India Volkswagen India Skoda Auto India Audi India Toyota Kirloskar Renault India: Nissan Motor India: Mitsubishi Mercedes-Benz India: Hyundai Motor India Land Rover Honda Siel General Motors India Chevrolet: Fiat India
Government has liberalized the norms for foreign investment and import of technology to have benefited the automobile sector. The production and that appears of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.
Evolution of Two Wheelers

Two Wheelers have made their presence felt in the mid 50's but it was only in the last fifteen years or so that the sector has really blossomed and evolved in the truest sense of the term. With the abolition of license permit raj, and removal of quantitative restrictions automobile industry in general and two wheelers in particular have grown in leaps and bounds. Gone are the days when one had to wait for several days to get a Bajaj scooter, today you can own a two-wheeler in a few minutes. The opening up of the economy has facilitated the two-wheeler companies to acquire superior and foreign technology, which enables them to compete with foreign companies like the Yamaha, Honda and the Suzuki . Today Hero claims to be the largest two-wheeler manufacturer in the world producing more than 3 million units of two-wheeler per year. It has to be noted that the Indian Government had East Point Collage Of Higher Education Page 31
acquired the Lambretta brand from the Inocennti Company in Italy way back in the 50's. The company was rechristened as scooters India Limited and it started manufacturing scooters in the country with the first product being the Vijaii Super.Very soon Indian companies like Bajaj Auto and LML Motors joined the bandwagon of manufacturing scooters modeled on the Italian design of the Vespa and Piaggio. Similarly motorcycles made their debut in the country courtesy the Enfield Motors, these heavy set of machines were brought into the country to help the services people man the difficult terrains of the western regions of the country. Every category of two-wheeler had its presence in the Indian market; Kinetic Motors has been instrumental in the success of mopeds in the country . Today one has a huge choice in the motorcycle category as there are products available across all segments right from the entry level to vantage position as most companies have stopped manufacturing these metal bodied geared scooters. This shrinking category has got a new lease of life thanks to the gearless scooterettes which are a big hit among the fairer sex. Kinetic Motors is trying to revive this category by infusing fresh blood in the form of Kinetic Blaze. The mopeds segment have seen a stagnant growth over the recent years but with rural connectivity improving with each passing day and motorcycles becoming more affordable , they are also posed to have a natural death . So in conclusion one can say that the two wheeler market has evolved in such a manner that in the days to come motorcycles are expected to be the most preferred choice of the consumer the premium segment.
Key players in the Two-wheeler Industry:

o o o o o o o o
Bajaj Auto Ltd. Electrotherm India Ltd Hero Honda Motors Ltd. HMSIL Hero Electric Kinetic Motor Co. Ltd. LML India Ltd. Monto Motors
o o o o o o o o
Royal Enfield Motors India Ltd. Suzuki Motor Corporation TVS Motor Co. Yamaha Motor India Pvt.Ltd. Mahindra 2 Wheelers Ltd. Harley Davidson Hyosung Ducati
There are a number of two wheeler companies in India that produce vehicles of extremely high standard. Some of the leading two wheeler manufacturers in India are Bajaj Auto, TVS Motor, East Point Collage Of Higher Education Page 32
Kinetic Motor, Suzuki Motor Corporation, Royal Enfield Motors India, Hero Honda Motors, Yamaha Motor India, LML India and Monto Motors. Many of two wheelers manufactured by these companies are exported to countries in South East Asia, Africa and South America. Motorcycles are usually priced higher than that of the scooters and mopeds. They are even equipped with more features for faster travel. Based upon the engine displacements and power capacity motorcycles are further classified as: road bikes, trail bikes, racing bikes and touring bikes . Most of the motorcycles in India come with engine capacity of about 100 cc to 250 cc. The engine capacity of scooters usually vary between 100 cc to 150 cc. Mopeds have small engine capacity ranging between 50cc to 100 cc. Most of the automobile companies in this segment are always coming up with newer variants of different models of two wheelers. To be in the long run these companies are even adding more number of features to these vehicles. Bike models become popular when they are as good in appearance as in the performance. Two wheeler bike models in India also get popular when they are in good price range along with other attractive features
Two Wheeler Statistics

India is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively . Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. Large varieties of two wheelers are available in the market, known for their latest technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class For both men and women in India
HERO MOTOCORP
Indias no. 1 two wheeler company has posted growth of 10.89% in the month of February 2012 compared to February 2011. The company has sold 5,23,465 units of two wheeler in the month of February 2012 compared to 4,72,055units of two wheeler sold in the month of February 2011. On the month on month basis the sale is up by 0.61%. The company has sold 5,20,272 units in the month of January 2012. Hero Motocorp has sold 57,06,905 units during April 2011 to February 2012 period up 16.79% compared to 48,86,592 units sold in the same period last year. East Point Collage Of Higher Education Page 33
Mr. Anil Dua, Senior Vice-President (Marketing & Sales), Hero MotoCorp said, Our multipronged initiatives continue to yield results. We have been consistently clocking over five lakh units in sales. And our performance in the first two months January and February has maintained that trend in both dispatch and retail sales. Our Billion Voices campaign, focusing on customer-generated content, has evoked huge interest, with our fans uploading their videos from all across the country. Our two recent launches under the new Hero brand name have stuck the right chord with the customers. The 150cc on-road off-road bike Impulse is steadily adding to our volumes. Meanwhile, we have also launched Maestro our new scooter targeted at young males. Our current scooter Pleasure specifically targeted at women customers - has helped expand the scooter market, and is already clocking over 38,000 units on an average every month. Now with the launch of Maestro, we are confident of further increasing our presence in the gearless scooter market, Mr. Dua added. The first eleven months sales figure suggests that the company will over achieve its 6 million units target. The company has recently tied up Eric Buell Racing and also intends to buy minority stake in company. It is also in race of buying Ducati. The company is also looking for establishing fourth plant which will become operational by second half of financial year 201213. Beside this the company is looking to expand its present capacity of 6.15 million units to 7.0 million units.
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BAJAJ AUTO
Countrys second largest two wheeler maker, Bajaj Auto has reported growth of 5.34 % in the month of February 2012. The company has sold 3,01,961 units of motorcycle in the month of February 2012 compared to 2,86,657 units in the month of February 2011. The company exported 1,22,727 units in the month of February 2012 up by 19.81% compared to 1,02,433 units in the month of February 2011. On the month on month basis sales is up by 2.56%. The company sold 2,94,432 units in the month of January 2012. The companys total sales stood at 3,43,777 units in the month of February 2012 up 5.17% compared to 3,26,874 units in the month of February 2011. The company has sold 35,33,557 units of motorcycle during the period of April 2011 to February 2012 up 13.52% compared to 31,12,651 units sold in the same period last year. The February month sales figure suggested that the company has flat sales for domestic market this month also. There is also concern that the company will not achieve its 4.6 million unit target which was revised to 4.5 million units and now further revised to 4.4 million units. However, the company is very hopeful for the financial year 2012-13 since it is going to launch new promising product in next fiscal. One is next generation Pulsar200 NS and another is a commuter motorcycle.
TVS MOTORS
TVS Motors has posted de growth of 2.43% in the month of February 2012. The company has sold 1,68,996 units in the month of February 2012 compared to 1,73,200 units sold in the month of February 2011. Total sales stood at 1,72,061 units in the month of February 2012 down by 3.02% compared to 1,77,412 units sold in the same period last year. On the month on basis the company has reported sales decline of 1.24%. The company has sold 1,71,112 units of two wheeler in the month of January 2012. Cumulative two wheelers sales for the period of April 2011 to February 2012 stood at 19,78,101 units of two wheelers up by 8.69% compared to 18,20,027 units of two wheeler sold in the same period last year. Domestic sales stood at 1,52,796 units in the month of February 2012 up by 0.84% compared to 1,51,526 units sold in the month of February 2011. Export stood at 17,960 units in the month of February 2012 down by 25.28% compared to 24,036 units sold in February 2011. The company sold 36,693 units of scooter in the month of February 2012 down by 9.03% compared to 40,335 units of scooter sold in the month of February 2011. Motorcycle sales stood at 63,019 units in the month of February 2012 down by 11.81% compared to 71,462 units sold in the month of February 2011. Moped sales stood at 69,284 units in the month of February 2012. TVS Motors motorcycle sale is stagnating now. The company is pushing well on moped front. The company is also bullish on export front and exploring new opportunities to expand its export market. However, past two months has reported dip in export sales. The company has set goal of East Point Collage Of Higher Education Page 35
selling 2.4 million units in this financial year which it will miss considering only 1 months left to achieve the same.
HMSI
Indias largest scooter manufacturing company Honda Motorcycle & Scooter India Ltd reported growth of 41.30% in the month of February 2012. The company reported sales of 2,06,043 units in the month of February 2012 compared to 1,45,819 units in the February 2011. On month on month basis the companys sales is up by 8.81%. The company sold 1,89,353 units in the month of January 2012. Motorcycle sales stood at 83,061 units in the month of February 2012 up by 26.06% compared to February 2011 where it sold 65,890 units. The company reported 53.86% jump in sales of Scooter. The company sold 1,22,982 units of scooter in the month of February 2012 compared to 79,929 units in the month of February 2011. The company sold 18,87,564 units during the period April 2011 to February 2012 up by 25.05 % compared to 15,09,446 units sold during the same period last year. HMSI is now at number three position for consecutive fourth month which suggest that it will now begin to chase number two position. Scooter number for HMSI has grown at the rate of 4070% from couple of months which suggests continuous capacity expansion. The higher growth rate is also attributed to continuous strong performance in scooter segment. Cumulative sales has achieved landmark figure of 9 million in the month of January. The company has started building its third plant in Narsapur Industrial area, 52 Km away from Bangalore, Karnataka to expand its capacity to 4 million units by mid 2013. The company launched new Honda CBR250R which it showcased at Auto Expo Delhi.
YAMAHA INDIA
Yamaha India has reported sales growth of 23.03% in the month of February 2012 compared to February 2011 on the back of strong demand in export market. Total sales stood at 40,655 units in the month of February 2012 compared to 33,046 units last year in the same period. The company reported month on month basis sales jump of 1.79%. The company sold 39,940 units in the January 2012. Domestic sales stood at 27,050 units up by 15.68% compared to 22,384 units in the month of February 2012. Export stood at 13,605 units in the month of February 2012 up by 40.81% compared to 9,662 units in the month of February 2011. The company sold 4,43,005 units during April 2011 to February 2012 period up by 31.72% compared to 3,36,332 units during the same period last year. Speaking on the results, Mr. Roy Kurian, National Business Head, India Yamaha Motor Pvt. Ltd., said, We are very pleased with the sales growth that weve witnessed in the past month on account of our strong product portfolio and high customer confidence in us. Our accolade models such as the YZF-R15, FZ series and SZ series have been very well accepted. We are also East Point Collage Of Higher Education Page 36
planning to implement our Best 3S (Sales, Service & Spares) set up in tier-2 & tier-3 cities and increase sub-dealers in the rural areas as well to further boost our sales. The company has recently launched version 2.0 of its flagship motorcycle YZF-R15. The company is aiming to sell 5,00,000 units in this financial year with 3,50,000 units of domestic sales and 1,50,000 units of export. The company is also planning to launch scooter in this year. The company is also expanding its capacity to 10 lakh units in anticipation of better demand in upcoming years. The company also unveiled its scooter concept Ray at Auto Expo 2012.
SUZUKI MOTORCYCLES
Suzuki Motorcycle India reported growth of 29.85% in the month of February 2012 compared to February 2011. The companys total sales stood at 37,336 units in the month of February 2012 compared to 28,754 units in the month of February 2011. The company reported growth of 6.37% compared to the month of January 2012. The company sold 35,099 units in the month of January 2012. The company sold 3,05,735 units during the period of April 2011 to February 2012 compared to 2,54,795 units sold during April 2010 to February 2011. Commenting on the sales growth, SMIPL Vice-President (Sales and Marketing) Atul Gupta said, We have received a good response from the market for all our products, including the newly launched Swish 125. The growing customer satisfaction has led to positive word-of-mouth in the market. As far as a domestic sale is concern Suzuki and Yamaha are fighting for 5th and 6thposition. Suzuki Motorcycle has grabbed fifth position as far as domestic sale is concern. Suzuki Motorcycle is benefitting from the growth of scooters. It is to be seen when Yamaha will start selling scooter and Suzuki will start exporting.
MAHINDRA TWO WHEELRS

Two wheeler company Mahindra two wheeler reported de growth of 34.12% in the month of February 2012 compared to February 2011. Total sales stood at 8,355 units in the month of February 2012 compared to 12,682 units in the month of February 2011. Month on Month basis the companys sales is up by 19.63%. The company sold 6,984units last month. During the April to February 2012 period the company reported sales of 1,24,757 units down by 17.47% compared to sales of 1,51,164 units in the same month last year. We are very excited about the enthusiastic initial response that the Duro DZ has been receiving since its national launch last month. Consequently, we are now ramping up supply to meet the increasing demand for Duro DZ. With an amazing range of superior features, and a very attractive launch price, the new Duro DZ is sure to be an instant hit. The launch is supported by East Point Collage Of Higher Education Page 37
an interesting new marketing campaign with actor Kareena Kapoor. said Mr. Viren Popli, Senior V.P. Strategy and Market Development, Mahindra Two Wheelers. The cumulative sales for the company have crossed a landmark figure of three lakh units, with both the Rodeo and Duro scooter brands having a franchise of more than one lakh consumers across the country. The company has reported massive de growth this month also in spite of dealer base expansion and promotional activities. This HMSI is clear indication that customers are moving from brand Mahindra. Moreover market leader has increased Activa production which is also taking some unit sales of Mahindra two wheelers. Going forward we will not see good growth figure if situation remains like this. The company is now looking to re launch its motorcycle Stallio for volume growth.
ROYAL ENFIELD
: Please refer to Royal Enfield reports 42% growth in 2011 post for Royal Enfiled sales performance.
Summary The Indian two wheeler industrys growth finally started showing slow down in the second consecutive month after sluggish January sales. The February 2012 month has seen sales of East Point Collage Of Higher Education Page 38
more than 1.29 million units up by 11.68% compared to 1.15 million units sold in February 2011. The period April 2011 to February 2012 has witnessed growth of 15.80% over the same period last year. More than 14.0 million units of two wheelers sold during the period of April 2011 to February 2012 compared to 12.10 million units in the same period last year. Hero Moto Corp the market leader is continuously posting double digit growth with robust sales each month. It has done 5.70 million units sales in the current financial year. Bajaj Auto the second largest manufacturer of two wheelers has sold over 3.53 million units in the current financial year. TVS Motors has sold more than 1.98 million units whereas HMSI sales stood at 1.89 million units during April 2011 to February 2012 period. Yamaha India, Suzuki Motorcycle and Mahindra two wheelers sold 0.44 million, 0.31 million and 0.12 million units respectively during the period of April 2011 to February 2012. It seems that the industry may grow at double digit but the growth rate will be around 10-12% for the rest of the financial year.
Benefits of two wheelers

Two-wheelers are the most popular and highly sought out medium of transport in India. The trend of owning two-wheelers is due to its Economical price Safety Fuel-efficient Comfort level However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Karizma, Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive . Browse through the pages and catch all the details of high-performance two wheelers in India. Know more about latest launches and happenings in two wheelers industry. The automobile industry in general and two wheeler industry in particular has shown a tremendous growth over the recent years. According to the Society of Indian automobile Manufactures (SIAM) the industry has grown by 16% in the year 2003/2004.Two Wheeler segment as a whole during the year 2004/05 grew by over 15%.This growth has been due to the Government's initiative on rural roads and better connectivity with major towns and cities,
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improved agricultural performance, upward trend of purchasing power in the hands of rural people. The two wheeler industry was able to achieve the record Performance of crossing 6 million two wheelers with exact sales standing at 6,208,860 during the year 2004-05 Though the metal bodied geared scooters have fallen out of favour of the Indian two-wheeler user their upward trend in growth has been due to rise in the sales of scooterettes and Motor scooters. Bajaj Auto has been able to sell 152,936 units in the year 2004/2005 of two wheelers which don't include motorcycles. They have shown a negative trend in the two wheeler segment other than the motorcycles. This goes on to show that Bajaj Auto has lost its supremacy in the scooter and moped segment as they have shifted focus to motorcycles. Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers. The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies leads to the arrival of new models of two-wheelers into India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry
..
Types of Two-wheelers in India:

There are mainly three types of two-wheelers available in India. They are Motorcycles, Scooters and Scooterettes/Mopeds.
Company: Bajaj Auto Ltd

Bajaj Platina 100cc Bajaj Platina 125 DTS-Si Bajaj Discover 135 DTS-i Bajaj XCD 125 DTS-Si Bajaj XCD 135 DTS-Si Page 40
Bajaj Pulsar 135 DTSi Bajaj Pulsar 150 DTSi Bajaj Pulsar 180 DTSi Bajaj Pulsar 200 DTSi Bajaj Pulsar 220 DTS-Fi Bajaj Pulsar 220 DTSi Bajaj Avenger 220 DTS-i
Company: HERO

Hero Ambition 133, Ambition 135 Hero Hunk Hero Pleasure Hero Achiever Hero CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Hero Glamour, Glamour F.I Hero Karizma, Karizma R, Karizma ZMR FI Hero Passion, Passion+, Passion Pro Hero Pleasure Hero Sleek Hero Splendor, Splendor+, Super Splendor, Splendor NXG,Splendor PRO Hero CBZ, CBZ Star, CBZ Xtreme
Company: TVS MOTOR

TVS Apache RTR 160 TVS Apache RTR 180 ABS TVS Centra TVS Fiero TVS Star City TVS Victor
Company: Yamaha Motor India

Yamaha CruxS Yamaha G5 Yamaha Gladiator Yamaha FZ Yamaha FZ-S Yamaha YZF-R1 Yamaha YZF R 15 Yamaha YZF-R15 Ver 2.0 Yamaha YBR 125 Yamaha YBR 110 Yamaha FZ1 Yamaha MT01 Yamaha VMAX Yamaha SS125 Yamaha SZ, SZ-X & SZ-R Yamaha Fazer
CHAPTER 3 : COMPANY PROFILE

About India Yamaha Motor Pvt. Ltd.
Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint venture with the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, YMC entered into an agreement with Mitsui & Co., Ltd. to become a joint investor in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)". The year 2011 has been a grooming year for Indias Yamaha as it witnessed a brisk growth due to the increased sale of its deluxe segment bikes, Yamaha FZ series as well as the Yamaha SZ series. The company strengthened its position by clocking sales of 4,60,815 bikes in 2011 as compared to 3,50,274 in 2010 thus showing a growth of 31.6% over last year. In the month of December alone, the company sold 44,976 units this year vs. 34,839 units in December 2010, East Point Collage Of Higher Education Page 43
thereby registering a growth of 29.1%. In domestic markets, the sales grew 25.3%, with 33,290 units in December 2011 vs. 26,567 units sold in the same month last year. The export figures stood at 11,686 units in December 2011 while 8,272 motorcycles were exported in December 2010, a growth of 41.3% . Speaking on the results, Mr. Hiroyuki Suzuki, CEO & Managing Director, India Yamaha Motor Pvt. Ltd., said, The year 2011 has indeed been an exceptional year for us as we were able to maintain consistency in our overall growth and the results speak for themselves. Our untiring efforts to rev up sales backed by innovative marketing strategies and an impeccable product portfolio across segments have borne much fruit. Our efforts towards enhancing our relationship with our esteemed customers through various initiatives like the Yamaha Safe Riding Science, the R15 One Make Race Championships and the Sales & Service camps have also been very rewarding. We are buoyant about the future and are looking forward to replicate and further improve upon this achievement in 2012 as well. The year 2011 also witnessed Yamaha reestablishing its firm footing in the premium segment with the launch of the R15 Version 2.0. This model was an upgraded version of Yamahas flagship R15 launched in 2008. Yamaha has been in constant endeavor to increase its foothold across all segments in the Indian market. To maintain its growing trend, the company plans to expand its production capacity to 1 million units next year. Along with this, the company is also planning to invest in product development and network expansion. IYM operates from its state-of-the-art-manufacturing units at Surajpur in Uttar Pradesh & Faridabad in Haryana and produces motorcycles both for domestic & export markets. With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a countrywide network of over 400 dealers. Presently, its product portfolio includes VMAX (1,679cc), MT01 (1,670cc), YZF-R1 (998cc), FZ1 (998cc), Fazer (153cc), FZ-S (153cc), FZ (153cc), SZ, SZ-X & SZ-R (153cc), YZF-R15 Ver 2.0 (150cc), SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc) and Crux (106cc)
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
We are committed to:
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Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHA products, focusing on serving our customer where we can build long term relationships by raising their lifestyle through performance excellence, proactive design & innovative technology. Our innovative solutions will always exceed the changing needs of our customers and provide value added vehicles. Build the Winning Team with capabilities for success, thriving in a climate for action and delivering results. Our employees are the most valuable assets and we intend to develop them to achieve international level of professionalism with progressive career development. As a good corporate citizen, we will conduct our business ethically and socially in a responsible manner with concerns for the environment. Grow through continuously innovating our business processes for creating value and knowledge across our customers thereby earning the loyalty of our partners & increasing our stakeholder value.
CORE COMPETENCIES Customer #1

We put customers first in everything we do. We take decisions keeping the customer in mind.
Challenging Spirit
We strive for excellence in everything we do and in the quality of goods & services we provide. We work hard to achieve what we commit & achieve results faster than our competitors and we never give up.
Team-work
We work cohesively with our colleagues as a multi-cultural team built on trust, respect, understanding & mutual co-operation. Everyone's contribution is equally important for our success.
Frank & Fair Organization
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We are honest, sincere, open minded, fair & transparent in our dealings. We actively listen to others and participate in healthy & frank discussions to achieve the organization's goals.
FOUNDING HISTORY
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 fourth-generation 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
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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 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 insure 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 have 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. East Point Collage Of Higher Education Page 47
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. Based on Genichi's firm belief that a product isn't a product until it can hold it's own around the world, in 1958 Yamaha became the first Japanese maker to venture into the international race arena. The result was an impressive 6th place in the Catalina Grand Prix race in the USA. News of this achievement won immediate recognition for the high level of Yamaha technology not only in Japan but among American race fans, as well. This was only the start, however.
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 East Point Collage Of Higher Education Page 48
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 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." He 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 offroad 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. 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
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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 becomes 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.
Manufacturing facilities
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 its parts for the domestic as well as oversees market. At the core are the 5-S and TPM activities that fuel our agile Manufacturing Processes. We have In-house facility for Machining, Welding processes as well as finishing processes of Electroplating and Painting till the assembly line. The stringent Quality Assurance norms ensure that our motorcycles meet the reputed 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. The IS0-14001 certification is on the anvil - early next year. All our endeavors give us reason to believe that sustainable development for Yamaha will not remain merely an idea in pipeline. We believe in taking care of not only Your Motoring Needs but also the needs of Future Generations to come. East Point Collage Of Higher Education Page 50
Overview
Founded Capital President Employees (Consolidat ed) Sales (Consolidat ed)
July 1, 1955 85,666 million yen (as of December 31, 2011) Hiroyuki Yanagi 54,677 (as of December 31, 2011) Parent :10,159 (as of December 31, 2011)
1,276,159 million yen (from January 1, 2011 to December 31, 2011) Parent: 463,292 million yen (from January 1, 2011 to December 31, 2011) Sales (%) by product category (consolidated)
Sales Profile
Sales (%) by region (consolidated)
Major Products & Services
Manufacture and sales of motorcycles, scooters, electrically power assisted bicycles, boats, sail boats, personal watercrafts, pools, utility boats, fishing boats, outboard motors, diesel engines, 4-wheel ATVs,
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side-by-side vehicles, racing kart engines, golf cars, multi-purpose engines, generators, water pumps, snowmobiles, small-sized snow throwers, automobile engines, Surface Mouters, intelligent machinery, industrial-use unmanned helicopters, electrical power units for wheelchairs, helmets. Import and sales of various types of products, development of tourist businesses and management of leisure, recreational facilities and related services. Headquarters 2500 Shingai, Iwata-shi, Shizuoka-ken, Japan Consolidated subsidiaries: 112 Non-consolidated subsidiaries: 8 (by the equity method) Affiliates: 27 (by the equity method)
Affiliated Companies
Dealers
Our Brand Image speaks for itself. Complementing the Marketing team is our vast and strong Dealer network - the backbone of our vital marketing operations. Recent initiatives have been launched by Yamaha in the field of business-to-business as well as business-to-consumer cooperation with Dealers. The new showrooms based on YAMAHA VISUAL IDENTITY are one of the many steps in this direction. Our dealer network works on the "3S" fundamentals of -SALES SERVICE and SPARE PARTS under one roof. With a strongly dedicated team of Sales and Service engineers, IYM targets the fulfillment of customer's needs. Every single customer matters to us. Together the 3S operate in tandem to serve our customer and forge an everlasting bond with them. CUSTOMER SATISFACTION- is our motto and we remain steadfast in our commitment to our valued customers...Offering Nothing But the Very BEST to Them.
Exports
IYM is an active player in the exports market. Currently, we export motorcycles to 50 countries including Argentina, Mexico, Philippines, Bangladesh, Sri Lanka, Columbia, Dominican Republic, Nigeria and lvory Coast. The export Product line boasts of RX 100, Crux, YD 125, Enticer and Libero. To consolidate our position in the exports arena, we are rapidly expanding our presence in Asia, Africa, Central and South America. Strengthening our reputation as an export base for YMC global operations, we are bright and optimistic about our emergence as a top-notch bike exporter of India.
AWARDS & RECOGNISATIONS

Variant of the Year Bike YZF-R15 by Car India & Bike India Awards 2012
Two-Wheeler Manufacturer of the Year- YAMAHA Motors by NDTV Car & Bike
Awards 2012
Motorcycle of the Year Above 150cc (SZ-R) by Bike India Awards. ZigWheels CBU Superbike of the Year 2011 - Yamaha VMAX Zigwheels- Bike of the Year Award Yamaha FZ-16 NDTV CAR & BIKE AWARDS Import two wheeler of the year 2011 Yamaha YZF-R1 Business Standard Motoring Bike of the Year 2011 Award Yamaha FZ-16 Page 53
UTVi/Autocar, Bike of the Year 2011 Award Yamaha FZ-16 UTVi & Autocar India Awards 2009 the Viewers Choice award Yamaha FZ-16 IMOTY Indian Motorcycle of the Year 2009 Yamaha YZF-R15 IMOTY Performance Bike of the Year 2009 Yamaha YZF-R15
CHAPTER 4 : RESEARCH METHODOLOGY

Research Methodology:
Research methodology tells about the statement of the problem, time scope, objectives and limitation of the study. The data collected here in the two sources Primary data :- Primary data was collected with the interaction with the certain executive Secondary data :- Secondary data was collected with the help of company records, company reports and publications, company websites and other books and magazines.
Type of study:
This project is a consumer survey and customer analysis.
Sampling device:
Random sampling of customers who have purchased the product. East Point Collage Of Higher Education Page 55
Tools of sample size:

50 respondents were selected for the project study.
Methods of collection of data:

For this research work necessary data have been collected with the help of two questionnaires, which was carefully made for this study. Questionnaire for the company. Questionnaire for the consumers. The data about the companies were collected through an interview conducted with the Manager of the YAMAHA MOTORS & database of the company. Data from the consumers were collected by direct interview as well as by telephonic interview
Statement of the problem:

The study is considered with respect to Yamaha motors. Concerning the consumers who have bought two wheelers and also on their perception towards the after sales service provided in YAMAHA MOTORS . The project aims at understanding the consumers perception towards the two wheelers bought in the YAMAHA MOTORS and their inputs of the service rendered to them in different periodical time.
Objectives of the study:

The objective of the study is as follows: 1) To understand the consumers views on the Yamaha bikes. 2) To measure the visibility of the brand in the market. 3) To evaluate whether the brands marketing in the market is help in the Development of the brand. 4) Receive suggestions if any, to improve the brand and services. 5) To gauge the brand image of YAMAHA MOTORS as a Part of consumer perception. 6) Suggest new needs of improving the brand perception through Marketing techniques.
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Sources of data
The study requires only secondary data, which already have been collected by some other agency or researcher with the intention of using it for a particular purpose. The source of secondary data is being companys records, company reports and published research studies, significant tools popular with my studies are company websites, annual reports and other books and magazines.
Scope of the study

This study is limited to two wheelers of Yamaha and also the entire two wheeler industry in general concern of consumer perception. The consumer satisfactions are some of the important data which have been covered in the project report and therefore its a wide study for improving marketing. All the consumers have been selected on a random basis. The relevant data have been collected with the help of consumers questionnaire prepared specially for this analysis. This consumer survey has been carried out over a period of one month.
Limitations of the study:

This project study is conserving two wheeler at YAMAHA MOTORS alone and thus cannot be generalized for all the brands available in the market. Some of the responses of the consumers may be biased due to which there may be problems in one final conclusion derived from the data collected.
Statement of the problem

This study is focusing on the consumer perception of two wheelers purchased in Yamaha motors.
Overview of the chapter scheme

Introduction
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This chapter gives a brief introduction to the concept of Marketing techniques and consumer perception.
Research Design
This chapter covers the title of the study, statement of the problems, scope of the study, objectives and limitations of study.
Company Profile
This chapter a bird eye view on Yamaha motors.
Industry Profile
Industry Profile has explained about the automobile and two wheeler industry in India.
Data analysis and interpretation

This chapter concentrates on analysis of the data so obtained and interpretation of the same. Each objective is considered separately and the analysis and interpretation were drawn for these.
Findings
This chapter contains the summary of findings based on the project study.
1: Time: - One month. 2: Area of study :- Within Bangalore. 3: Sample: - 50 Respondents.
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CHAPTER 5: ANALYSIS AND INTERPRETATION OF DATA

INTRODUCTION
This section deals with the interpretation of the data that has been collected from the respondents. The data has been tabulated, and explained. It is followed by a graph depicting statistical interpretation of the data collected. The total number of respondents is 50 and the number of queries is 19. All the queries have been answered. Some responses to the queries are dependent on the choices made by the respondents for previous questions.
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1. OCCUPATION.
This question tries to find out about the occupation the consumers belong to. Table 1. Showing the responses of the consumers of their occupation. Sl no 1 2 3 4 Particulars Student Employee Business Others Response 20 17 12 2 Percentage 40% 34% 24% 4%
Analysis and Interpretation:

The above table shows that 40% students are who uses Yamaha bikes. Next categories are employees who form almost 34% of total respondents. 24% of respondents are the customers who own a business and at least are the others of different occupation who form the remaining 4%.
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40% 35% 30% 25% 20% 15% 10% 5% 0%
40% 34%
24%
4% student employee business others
2. AGE GROUP
This question tries to find out the age group of the respondents belong to. Table 2. Showing the responses of the consumers, to which age group they belong to. SL NO 1 2 3 4 Particulars 18-25 25-35 35-50 50 and Above Response 25 15 10 0 Percentage 50% 30% 20% 0%

From the above table it shows that 50% of total respondents are in the age Group of 18-25. 30% are the respondents who are in the age group of 25-35 and the remaining are in the age group of 35-50 who form 20% of the respondents, who use two wheelers. East Point Collage Of Higher Education Page 62
50% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 18-25
30% 20%
25-35
35-50
0% 50 and above
3. INCOME GROUP.
This question tries to find out the income group the respondents belong to. TABLE 3. Showing the responses of the consumers, to which income group they belong to.
Sl No
1 2 3 4
Particulars
15000 30000 50000 Above 100000
Response
18 19 10 3
Percentage
36% 38% 20% 6%

The above table shows that the most of the respondents belong to the income group of 15000 and 30000 approximately and form 36% and 38% of total respondent. The remaining are in the income level of 50000 and above 100000, which forms 20% and 6% of respondent. This shows the middle class consumers who purchase more two wheelers. East Point Collage Of Higher Education Page 63
40% 35% 30% 25% 20% 15% 10% 5% 0%
36%
38%
20%
6% 15000 30000 50000 above 100000
4. WHICH BRAND OF TWO WHEELER ARE YOU AWARE OF? This question tries to find the awareness of different brands available in the market.
TABLE 4. Showing the responses of the consumers about which brand they are aware of. Sl no Particulars Response Percentage 1 Yamaha 15 30% 2 3 4 Hero Bajaj Others 20 10 6 40% 20% 10%

The above table shows that 30% of the respondents are aware of the brand Yamaha in the market; others are the Hero, Bajaj and others which form 40,20,10 percent of the total respondents. This shows that the Yamaha has average brand image across the people
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40% 35% 30% 25% 20% 15% 10% 5% 0% Yamaha 30%
40%
20%
10%
Hero
Bajaj
Others
5. DO YOU OWN A TWO WHEELER?

This question tries to find out whether the respondents own two wheeler or not. TABLE 5. Showing the responses of the consumers in a tabulated manner. Sl No 1 2 Particulars Yes No Response 50 0 Percentage 100% 0%

The above table shows that the 100% respondents own a two wheeler.
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100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes 0% no
6. IF YES, FROM WHERE DID U BUY?

This question tries to find out from where the consumers have bought two wheelers. TABLE 6. Showing the responses of the consumers in table format. Sl No 1 2 3 4 Particulars Yamaha Hero Bajaj Others Response 36 8 5 1 Percentage 50% 20% 25% 5%

From the above table it shows that 50% of consumers have bought two wheelers from Yamaha dealer.20% of consumers have bought two wheelers from Hero and 25%, 5% which include Bajaj and others which form the total respondents. East Point Collage Of Higher Education Page 66
This shows that many people opt for buying Yamaha two wheelers from the authorized dealers.
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
50%
25% 20%
5% Yamaha Hero Bajaj Others
7. SINCE WHEN DID YOU COME TO KNOW ABOUT YAMAHA MOTORS?

This question tries to find out the time period from which the consumers are aware of Yamaha motors. TABLE 7. Showing the responses of the consumers below. Sl no 1 2 3 4 Particulars 2-5 months 6-12 months 1-2 years More than 2 year Responses 15 17% 14 4 Percentage 30% 34% 28% 8%
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The above table shows that 30% of consumers know about Yamaha motors in the period of 25months.34% of consumers know in the period of 6-12 months, 28% of consumers know about Yamaha motors from 1-2years and the remaining consumers know from more than 2years.
m ore than 2 yers 8% 2-5m onths 30% 1-2years 28%
6-12m onths 34%
8. HOW DID YOU COME TO KNOW ABOUT YAMAHA MOTORS?

This question tries to find out through which media the consumers got to knew about Yamaha motors. TABLE 8. Showing the responses of consumers. Sl No 1 2 3 4 Particulars Advertising Friends Family Hoardings Response 11 28 10 1 Percentage 22% 56% 20% 2%
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This table shows that 56% respondents are have known panache motors (Yamaha) through friends. Advertising and family also plays an important role in consumers purchasing two wheelers inYamaha motors
60% 50% 40% 30% 20% 10% 0% Advertising 22%
56%
20%
2% Family
9. DID U GET THE FULL SERVICE FROM THE YAMAHA MOTORS?

This question tries to find out whether the consumer has availed the full service from Yamaha motors. TABLE 9. Showing the responses of the consumers in the table below. Sl no 1 2 Particulars Yes No Response 40 10 Percentage 8 0% 20%

The above table shows that 80% of respondents have availed the free services provided by the dealer and 20% of respondents have still to avail the full service facility.
80% 70% 60% 50% 40% 30% 20% 10% 0%
80%
20%
yes
no
10. HOW DO THEY HANDLE THE TWO WHEELER AT THE TIME OF SERVICING?
This question tries to find out the care taken by the mechanics while handling two wheeler at the service time. Table 10. Showing the responses of the consumers in the below table. Sl no 1 2 Particulars Smoothly Roughly Response 41 09 Percentage 82% 18%
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The above table shows that 82% of consumers say that the handling of two wheeler at panache motors is smooth and 18% of total respondents say that the handling of bikes is roughly done.
Roughly Smoothly 0%
18% 82% 20% 40% 60% 80% 100%
11. HOW MUCH TIME DID THEY TAKE FOR SERVICING?

This question tries to find out the time taken for delivering the two wheeler after the service. TABLE 11. Showing the responses of the consumers in the below table. Sl No Particulars Response Percentage 1 2 3 4 2-4 hours 4-6 hours 6-8 hours More than 8 hours 10 25 10 5 20% 50% 20% 10%
Page 71

The above tabulation shows that many consumers have got their two wheeler serviced in the time period of 4-6hours. 20% of consumers who require their two wheeler very urgently have got it serviced in 2-4hours without any extra payment. 20% consumers have got their vehicle serviced in the time frame between 6-8hours and the remaining respondents have got delayed services by more than 8 hours.
50% 45% 40% 35% 30% 25% 20% 20% 15% 10% 5% 0% 2-4hrs
50%
20% 10%
4-6hrs
6-8hrs
more than 8 hrs
12. WHAT ABOUT THE BEHAVIOUR OF THE STAFF IN YAMAHA MOTORS?

This question tries to find out the behaviour of the staff in Yamaha motors towards the consumers. TABLE 12. SHOWING THE RESPONSES OF THE CONSUMERS IN THE BELOW TABLE. SL NO Particulars Response Percentage 1 2 3 4 Good Better Satisfied Worst 25 10 15 0 50% 20% 30% 0% Page 72

This table above shows that 50% of total respondents feel that the behaviour of the staff in Yamaha motors is good. 20% of respondents say that its better. 30% of consumers are satisfied by the behaviour of the staff. so its a positive response towards the Yamaha motors
0% 30% good better satisfied worst
50%
20%
13. WHAT IS THE LEVEL OF SERVICE PROVIDED?

This question tries to find out the level of satisfaction the consumers in getting the two wheeler services. TABLE 13. Showing the responses of the consumers in the below table. Sl no 1 2 3 Particulars Good Better Satisfied Responses 25 11 13 Percentage 50% 22% 26%
Page 73
Worst
2%
Analysis and interpretation:

The above table shows that 50% of consumers are satisfied with the service provided by Yamaha motors. 22% of consumers say that its better service provided. 26% of respondents say that they are satisfied with the service and 2% of respondents feel that the service provided is worst and has to be improved.
2%
26%
50%
Good Better Satisfied Worst
22%
14. AFTER ALL FREE SERVICES, WERE DID YOU GET YOUR TWO WHEELER SERVICED.
This question tries to find out whether the consumers have given their two wheeler to be serviced other than with the dealer. TABLE 14. Showing the responses of the consumers in the given below table. Sl No Particulars Responses Percentage 1 2 3 Dealer Local workshops Service stations 24 10 11 48% 20% 22% Page 74
Not yet done
10%

This table shows that 48% of consumers still give their vehicle to dealers for better service.20%and 22% consumers get their vehicle serviced in local workshops and service stations and remaining 10% respondents have not got their vehicle serviced after availing all free services done.This shows that many still feel that there is better service provided from the dealers.
10% 22%
Dealer
48%
20%
Local workshops Service stations Not yet done
15. DO YOU HAVE ANY COMPLAINT ABOUT THE SERVICES PROVIDED BY YAMAHA MOTORS?
This question tries to find out the number of respondents who have or do not have complaints regarding the services provided by Yamaha motors. TABLE 15.Showing the responses of the consumers in the below table. Sl No Particulars Response Percentage 1 Yes 15 30% Page 75
No
35
70%

The above table shows that 70% of respondents have no complaints regarding the services provided by Yamaha motors (). 30% say that they have complaints about the services provided. So its a positive response and reputation is good in the service providing.
Slice 4 3 0% YES 30%
NO 70%
Page 76
CHAPTER 6: FINDINGS
FINDINGS
Page 77
All the respondents have bought two wheelers from YAMAHA MOTORS. They have a wide range of buyers from all age groups. The most of the respondents are in the age group of 20-35 who purchase two wheelers in Yamaha Motors . Most of the respondents were aware of Yamaha before purchasing two wheeler from Yamaha Motors. Many of the respondents (76%) came to knew about Yamaha Motors through friends and family. Most of the consumers have availed the free services provided by Yamaha Motors. The handling of two wheelers during service by mechanics is very smooth and better. Most of the time taken for servicing each vehicle is very consistent in the frame of 46hours. Most of the respondents say that the behaviour of the staff in Yamaha Motors is good. Many of the consumers, who have already availed all the free services, still opt for getting their vehicle serviced in Yamaha Motors,so it shows their reputation in providing better service than others.
Page 78
CHAPTER 7-SUGGESTIONS
SUGGESTIONS
Concentrate advertisements of mass media to boost sales in the market.
Page 79
There should be many more branches of Yamaha motors should be opened so that people can easily access the dealer.
The service time required for each two wheeler should be minimized as possible with better quality.
The staff should be imparted good knowledge of the products.
The staffs behaviour overall is considered good but it should get better to attract more customers.
YAMAHA MOTORS should provide some more discounts for customers so that after all the free services they still opt for getting their vehicle serviced in the showroom itself.
Page 80
CHAPTER 8- CONCLUSIONS
CONCLUSIONS
Page 81
All respondents are aware about the various brands available in the market.
Customers expect all salesmen to be knowledgeable about the product.
Newspapers and other media have influenced sales to a larger extent.
Advertisements, friends, family and others influence respondents.
Most of the students and employees are the group targeted more.
Brand awareness of Yamaha among the people is very good.
The service provided is of very better standards with quality and experienced staff.
Page 82
CHAPTER 9- BIBILOGRAPHY
BIBLOGRAPHY Books and Magazines

Economic Times
Autocad E-Banking
www.indiabike.com www.yamahaindia.com www.economywatch.com www.google.com
Page 84
CHAPTER 10- ANNEXURE
QUESTIONAIRE
Page 85
DEAR SIR/MADAM,
I, NAVEED ANJUM.M, student of East Point College of Higher Education college, As I am conducting a survey on A STUDY ON CONSUMER PERCEPTION TOWARDS TWO WHEELERS with special reference to YAMAHA MOTORS, as a partial fulfillment of my BBM curriculum. Kindly co-operate by spending your precious time and providing me valuable information. Any information received will be kept confidential.
PERSONAL DATA 1) NAME2) ADDRESS_______________________________

______________________________________ ______________________________________ ______________________________________ ______________________________________
3) PHONE NO-
4) EMAIL ID -
______________________________________
5) Occupation Student business employee Others______________
Page 86
6) Age group-
18-25 25-35 35-50 50 and Above
7) Income group 15000 30000 50000 above 100000
8) Which brand of two wheeler are you aware of-
Yamaha Hero Bajaj Others__________________
Page 87
9) Do YOU own a two wheeler-? Yes No
10) if yes, from were did you buy-
Yamaha Hero Honda Bajaj Others_____________________
11) Since when did u come to know about Yamaha motors-?
2-5 months 6-12months 1-2 year More than two years
12) How did u come to know about Yamaha motors-? Advertising Friends East Point Collage Of Higher Education Page 88
Family Hoardings 13) Did u get the full service from the Yamaha motors-? Yes No
14) How do they handle the two wheeler at the time of servicing Roughly Smoothly
15) How much time did they take for servicing 2-4 hrs 4-6hrs 6-8hrs More than 8 hrs
16) What about the behaviour of the staff in Yamaha motors-
good Better Satisfied Worst East Point Collage Of Higher Education Page 89
17) What is the level of service provided? Better Good Satisfied Worst
18) After all free services, were did you get your two wheeler serviced dealer Local workshops Service stations Not yet done
19) Do you have any complaint about the service provided by Yamaha motors-? Yes No
20) Suggestions for Yamaha motors___________________________________________________ ___________________________________________________ ___________________________________________________
Page 90
THANK YOU
Page 91

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Consumer Perception On Two Wheelers

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

Overview Of Automobile Industry

Consumer Perception On Two Wheelers

Consumer Perception On Two Wheelers

Consumer Perception On Two Wheelers

The Marketing Concept

Consumer Perception On Two Wheelers

The Nature and Scope of marketing

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

Hybrid: The offer consists of equal parts of goods and services.

Pure service: East Point Collage Of Higher Education Page 7

Consumer Perception On Two Wheelers

Consumer & Customer

Consumer Perception On Two Wheelers

Factors influencing consumer perception and preferences

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

b). Roles and Statuses:

Consumer Perception On Two Wheelers

A). Age and life cycle stage:

c). Economic Circumstances:

d). Personality and self Concept

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

c). Beliefs and Attitudes:

Consumer characteristics effecting perception

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

Characteristics of the Perceivers 1. 2. 3. 4. 5. 6. 7.

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

Selective exposure Selective attention Perceptual defense Perceptual blocking

Consumer Perception On Two Wheelers

Consumer Perception On Two Wheelers

Value and Satisfaction:

Consumer Perception On Two Wheelers

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

3. Form competition: a company sees its competitors as all companies manufacturing

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

IMPORTANCE OF 4Ps IN MARKETING

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

BRAND EQUITY AND ADVERTISING

Consumer Perception On Two Wheelers

Consumer Perception On Two Wheelers

SELLERS International marketing Headquarters

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

CHANNELS Between nations

CHANNEL Within foreign nations FINAL BUYER

Consumer Perception On Two Wheelers

Complex buying behavior:

Habitable buying behavior:

Variety seeking buying behavior:

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers

CHAPTER 2: INDUSTRY PROFILE

East Point Collage Of Higher Education

Consumer Perception On Two Wheelers