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IN COMPANY TRAINING REPORT

On
MARKETING STRATEGY OF YAMAHA
PRODUCTS

at

YAMAHA MOTORS INDIA PVT. LTD.


Faridabad.
Submitted in partial fulfillment of the requirement of
Bachelor of Business
Administration (BBA), Guru Jambheshwar University
of Science & Technology, Hisar.
Training Supervisor:
Mr. A. C. Yadav

Submitted By:
Rahul Rao
B. B. A. 3rd Yr.
Enrollment No.: 06511120036

Session : 2008-09

Directorate of Distance Education


Guru Jambheshwar University of Science & Technology.

Hisar.
Contents
1. Organisation Profile

Introduction

Creation

Vision

Product Range

Yamaha History

Yamaha Motor Limited

Distribution System

Corporate Structure

Hierarchical Structure

Department Chart

2. Task Undertaken

Research Objective

Introduction on Yamaha Crux

Research Methodology

Key Findings

Conclusion

Recommendations

Usefulness of the Project

Limitations

3. Self Appraisal
4. Bibliography

5. Appendices

Acknowledgement
After completing the training report at YAMAHA MOTORS LTD., it is a great
pleasure for me to thank all those who have helped me during the course of
completion of my project.
I express my sincere thanks to Mr. A. C. Yadav (Head of Marketing Deptt.) of
Yamaha Motor Limited for giving me a unique opportunity to do project in their
esteemed organization.

Last but not the least; I would like to place a word of appreciation on record for a
all those who directly on indirectly supported me.

(RAHUL RAO)

Executive Summary
Yamaha Motor Escorts Limited (YMEL) is a joint venture company formed by the
alliance of Escorts Limited, the flagship company of the Rs. 3600 crores Escorts
Group, a major in the two-wheeler business and Yamaha Motor Company Limited
(YMCL), Japan.
Recently YMEL launched a new bike - Yamaha Crux in December, 2000. My
project was aimed at investigating about the awareness level of Crux from the
owners of the competitive brands. These competitive brand names are Hero
Hondas Splendor & CD 100/SS and Bajajs Caliber. My project also aimed at
determining the primary factors which influence scooter owners to shift from
scooters to motorcycles. My project was restricted to New Delhi only and the sample
size was 250 including 100 for scooter owners and the rest 150 divided equally
among the three competitive brands, that is, Splendor - 50, Caliber - 50 and CD
100/SS - 50. Questionnaires were made and were filled by the respondents and the
data collected was analyzed to get some useful results.
After analyzing the data, we discovered the primary factors influencing scooter
owners to shift from scooters to motorcycles. The prominent among these factors
were that motorcycles have a better fuel economy, motorcycles are more stylish and
the engine power of motorcycles is more as compared to scooters. We also
discovered that the awareness level of Yamaha Crux was very low and this was
primarily due to lack of advertisements and other promotional activities. Thus, in
the end some recommendations were also given to Yamaha Motor Escorts Limited
so that they could take the required preventive measures.

INTRODUCTION
OF
THE
COMPANY

Introduction
The Escorts Group, with Escorts Limited as its flagship company, is among India's
largest

corporations

operating

in

the

diverse

fields

of

agri-machinery,

telecommunications, information technology, healthcare, bi-wheelers, construction


& material handling equipment, automotive & railway ancillaries and financial
services. The Group has 19 modern manufacturing facilities & an extensive
marketing network spread across the country. The major global alliances of the
Group include : JCB - UK, Yamaha - Japan, Claas, Mahle and Goetze - Germany,
Carraro - Italy, Long CA, Vistaar & i2 - USA, First Pacific - Hong Kong, IFS Sweden and POL-MOT - Poland.
Creation
The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and
Mr. Yudi Nanda, launched a small agency house, Escorts Agents Ltd. in Lahore.
The next 50 years saw Escorts surge ahead and become one of India's largest
conglomerates.

Rajan Nanda (The Legacy of a Vision)

H.P.
Nanda
(1917-99)

Escorts gauged the need for modernising agriculture and pioneered farm
mechanisation in the country. In 1948 Mr. H.P. Nanda established Escorts Agri Machinery Limited, to market tractors and farm implements. It set up the first
dealer network of its kind to market tractors for import purpose. Escorts soon
became the number one tractor selling company in India. Meanwhile, the company
branched into manufacturing piston rings in India in collaboration with GOETZE
WERKE of Germany.

Present Scenario
On assuming the Chairmanship of the Group, in April 1994, Mr. Rajan Nanda,
undertook a major restructuring programme to give sharper focus to the businesses.
This involved building alliances with global players and improving market
capitalization, which resulted in each business becoming an independent entity with
defined partnerships, technology, customers and business economics.
The recent past also witnessed a major shift in Escorts' business focus, when it
broke away from its traditional identity of being a purely engineering company and
made its foray into the service sector of telecom and information technology. The
Group has since re-evaluated its focus with thrust on areas of high growth namely
agri machinery, telecom, software and healthcare. Towards this end, the Group has
recently launched a major initiative in Internet and E-commerce. The remaining
businesses are strategic investments for generating value.

Vision
As Escorts marches into the 21st century, it does so with a clear vision, renewed
commitment and the ability to perform. The ultimate objective being to create value
for its shareholders.

Be market leaders in areas of high growth businesses of Agri, Telecom,


Information Technology & Healthcare.

In other Businesses generate value through strategic investments.

Provide world class quality products and services to consumers.

Thrust on developing major export markets.

Make the Group investor attractive by creating value for customers which
ultimately creates value for shareholders

COMPANY
PROFILE

Yamaha Motor Escorts Limited (YMEL) is a joint venture company formed by the
alliance of Escorts Limited, the flagship company of the Rs. 3600 crores Escorts
Group, a major in the two-wheeler business and Yamaha Motor Company Limited
(YMCL), Japan.
The global giant in two-wheelers business over 3 decades and having the distinction
of putting over 25 lakh two-wheelers on Indian roads. The company has presently
two manufacturing facilities located at Faridabad in Haryana and at Surajpur in
Uttar Pradesh.
Using state-of-the-art technology for its Rajdoot, Yamaha and Escorts range of
motorcycles, the company is on the fast track to make its presence felt in all the
segments of the two-wheeler industry, offering exciting machines not only to the
Indian customers, but also being a leading exporter of two-wheelers. It is this
proximity to the customers that gives YMEL the confidence of riding into the next
decade with world-class technology. Meeting the diverse needs of the customers
millions of bikes across millions of miles.

Yamaha Over the Years


1960 - Secured license under technical collaboration with CEKOP, Poland
1961 - Obtained 23 acres of land for separate factory
1962 - Assembly and partial manufacturing started in plant 1
1964 - Machinery was installed in the new building
1965 - Manufacturing activities shifted from plant 1 to the present building
1972 - GTS - a small motorcycle was introduced

1979 - Entered in technical collaboration with Yamaha Motor Company of Japan


for manufacturing 350cc motorcycle
1983 - Letter of indent obtained for manufacture of 100cc motorcycle
1983 - Launched 350cc motorcycle in the market all over India
1984 - On identified scale, manufacturing facilities of various components were
improved upon by the introduction of 4th generation machinery equipment
1984 - 175cc Super-D model was introduced
1985 - Started manufacturing of RX-100cc motorcycle in technical collaboration
with Yamaha Motor Company, Japan
1985 - Installed UYEMURA, automatic electroplating plant
1989 - Introduction of indicators in existing 175cc Rajdoot motorcycle
1990 - Up gradation of 175cc motorcycle by introducing newer technology and
styling such as bringing in of EXCEL-T with telescopic front forks/modern system
1993 - Electronic ignition system of Rajdoot launched
1995 - Started manufacturing 50cc moped on 31st March
1996 - ISO 9001 was achieved
1997 - Launch of Yamaha RXZ and 175cc Escorts ACE
1998 - YBX 4-stoke bi-wheeler was launched
2000 - YD-125 launched
2000 - Share of Yamaha Motor Company, Japan rose to 74%, so take over of
Escorts Yamaha Motor Ltd. (EYML) and conversion to Yamaha Motor Escorts
Ltd. (YMEL)
2000 - Yamaha Crux launched in December
2001 - On 14th June, Yamaha Motor Escorts Ltd. was officially taken over by
Yamaha Motor Company, Japan
2002 - Libero

Recent Changes
On 14th June, 2001, Yamaha Motor Escorts Limited was officially taken over by
Yamaha Motor Company Limited, Japan.
Objectives of Yamaha Motor Company Limited :

1. Customer satisfaction strengthened by improving dealer network, the shops and


making customer more comfortable.

2. Strengthening research and development.


3. New motto Speed, Quality, Yamahas Original Design.
4. Optimizing the internal working system.
5. Yamaha the Kando company. Kando is a unique Japanese word which means
Touching Peoples Hearts.

Product Range of Escorts Group


Agri Machinery

Telecom

Informatio

Healthcare

Bi - Wheelers Construction & Auto

& Financial

Material

Railway

Services

Technology

Handling

Components
Escorts Ltd.

Escorts Ltd.

Escotel

Escorts

Escorts

Yamaha

Equipment
Escorts

- Tractors

Mobile

Technologi

Heart

Motor

Construction

Escort

Communic

es Ltd.

Institute

Equipment Ltd.

Absorber

Farmtrac

ations Ltd.

Research

- Motorcycles -

Powertrac

Centre Ltd.

Cellular Professiona

Paddy Telephone
Services
Transplanters

l Services

Based

Hospital

Software

Research

Developme

Centre Ltd.

Sugarcane

Harvesters
Escorts

Claas

Project Escorts

nt

&

Ltd.
-

& Escorts Ltd.

Combine

Enterprise

Pick-n-carry -

Escorts

Shock Finance
Ltd.

Telescopic -

Yamaha

Cranes

RX-135

Yamaha

Loaders

RXZ

Yamaha

Cranes

YBX

Yamaha

Boom Cranes

Pneumatic

Moving

YD-125

- Forklifts

Brakes

Equipment

ACE-175

Front
360

Front

Bike

Finance

End - Forks & Mc Pherson Struts


Slew Railways
- Air Brakes

Articulated -

Finance
-

CV

Finance

Electro -

Vibratory - Couplers

Car

Earth

Finance

Harvesters

Level

Rajdoot

Rollers

Crop Tiger

Software

Yamaha

Track

Implement

RX-100

Platform

Version

ation

Wheel

Carraro

India

Escorts
Ltd.

Escosoft

Pvt. Ltd.

Loaders
-

Bach

India Trading

Ltd.

- Personal

Articulated - Piston Rings

& Axles

Services

Ltd.

Loaders

Front

Investment

Aluminium s

End Cylinder

- Advisory

Blocks

Long

Agribusiness

Portal

Excavators

LLC

- Skid Steers

Track -

Services
Cylinder

Liners

Service

Escorts Mahle

POL-MOT

Provider

Ltd.

Escorts Spoika

Zoo

Service

Pins

Automatrix

Escorts

Mobile

Mutual

Funds

Hoe Goetze

Loading Shovels

Internet

Vulcanised -

- Securities

Esconet

Hiring

JCB Parts

- Transmissions

Health

Plant

- Rail Fastening - FD
-

CA

Ltd.

Shock -

Aerial Absorber

Yamaha
Crux

Version]

Pistons

&

india.com

Employees
Ancillaries Ltd.
- Carburetors

Presidents Message
Creating Kando that exceeds the expectations of our customers

In April of this year, the Yamaha Group inaugurated its new YGP2010 (Yamaha
Growth Plan 2010) medium term business plan, which will take the company
through March, 2010. Under this medium term plan the musical instrument, pro
audio, music software, AV/IT and device domains based on sound, music and
network technologies have been redefined as the domain of "The Sound Company."
This move reflects our goals of achieving sustainable growth and acquiring
management resources in a focused and proactive manner.
The Yamaha Group will continue to strive to provide satisfaction to our customers
and to create "Kando" that exceeds their every expectation, by using both leadingedge and traditional technology to supply products and services built on a
foundation of sensitivity and creativity.
We look forward to your continued support.

June 2007
President and Representative Director
Mitsuru Umemura

Yamaha History
1887
Torakusu Yamaha builds his first reed organ
and begins taking orders for more.
1897
Nippon Gakki Co., Ltd. is established with
Torakusu Yamaha as president.
The company fulfills its first export order: 78
organs for Southeast Asia.
1900
Yamaha begins making upright pianos.
1902
Yamaha produces its first grand piano.
1903
The company makes use of its woodworking
expertise to begin building fine furniture.
1904
A Yamaha piano and organ are awarded the
Honorary Grand Prize at the St. Louis World's
Fair.
1914
Yamaha introduces its first harmonica and, later
that year, begins exporting harmonicas
worldwide.
1922
Yamaha begins production of high-quality hand-

wound phonographs.
1930
Yamaha opens the world's first acoustics
research room.
1931
Yamaha engineers the acoustics of Japan's new
Diet halls.
1932
Yamaha begins production of pipe organs.
1935
The Magna Organ debuts.
1942
Yamaha creates its first acoustic guitar.
1951
The Yamaha Building opens on Tokyo's Ginza.
1953
President Genichi Kawakami begins seriously to
investigate overseas markets.
1954
The Yamaha Music School system is
inaugurated.
Yamaha manufactures its first Hi-Fi Player.
The company's expertise in metallurgical
technologies leads to the manufacture of the first
Yamaha motorcycle, the YA-1. First-year
production: 125.
1955

The success of Yamaha motorcycles results in


the founding of Yamaha Motor Co., Ltd.
1958
The company forms its first overseas subsidiary,
Yamaha de Mexico S.A.
1959
The Yamaha Technical Laboratories are opened.
Yamaha develops an electronic organ, the
Electone.
Yamaha takes advantage of its materials
expertise to create a line of fiberglass-reinforced
archery equipment.
1960
Yamaha founds a U.S. subsidiary.
1961
Following on the success of Yamaha archery
equipment, the company develops and markets
the first FRP skis. Yamaha diversifies into the
manufacture and sales of alloys.
1962
Yamaha Recreation Co., Ltd., is formed.
1964
Yamaha holds the first Electone Concours.
1965
Yamaha begins producing wind instruments.
The first overseas Yamaha Music School opens
in Los Angeles.

1966
Yamaha expands into Europe with the founding
of Yamaha Europa GmbH, in West Germany.
The Yamaha Music Foundation is established.
Yamaha markets its first guitars and drums.
Yamaha Music Schools open in Mexico, Canada
and Thailand.
1967
Yamaha opens Nemu-no-Sato, a unique resort
devoted to music as well as recreation.
Yamaha unveils the CF concert grand piano.
1968
Yamaha produces its first line of hi-fi stereo
equipment.
1969
Sviatoslav Richter uses a CF concert grand for
his Italian tour.
1970
In Tokyo, Yamaha stages the First World
Popular Song Festival.
1971
Yamaha begins semiconductor production.
1972
Yamaha sponsors the First Junior Original
Concert.
Yamaha launches wind instruments developed in
cooperation with the Vienna Philharmonic
Orchestra.

1974
Yamaha debuts the NS1000M speaker, with a
beryllium diaphragm, as well as the company's
first synthesizer, the CSY-1, and mixing console,
the PM-1000.
Yamaha opens the Tsumagoi resort for music
and sports.
In West Germany, Yamaha sponsors the first
Junior Original Concert to be held outside
Japan.
1975
Yamaha sports equipment manufacturing
diversifies into tennis rackets.
Full-scale manufacture and marketing of
Yamaha fine furniture begins.
1976
Yamaha begins production of electric and
electronic pianos.
1977
Yamaha opens the Atelier for Wind Instruments
in Tokyo.
1978
Yamaha opens the Atelier for Wind Instruments
in Hamburg.
1980
Yamaha opens the Piano Technical Academy in
Tokyo.
PortaSound, a portable keyboard, is marketed.
1982
Yamaha develops a line of carbon composite golf

Yamaha introduces a compact disc player, the


CD-1.
Yamaha markets its first Disklavier.
1983
Yamaha markets the Clavinova, an electronic
piano, and the DX-7 Digital Synthesizer.
Yamaha debuts the CF concert grand piano.
Yamaha begins production of custom-made
LSIs.
1984
Yamaha synthesizes a range of proprietary
technologies to produce its first industrial robots.
1985
The Yamaha R&D Studio opens in Tokyo.
1986
Yamaha markets the DSP-1 Digital Sound Field
Processor.
The Atelier for Wind Instruments opens in
Vienna.
1987
The Piano Artist Service Center (C.E.A.A.)
opens in Paris.
Yamaha opens the R&D Studio in London.
In Tokyo, Yamaha stages the First Band
Explosion World Final.
The company name is officially changed to
"Yamaha Corporation" to mark the 100th
anniversary of its founding.
1989
The Museum of Modern Art, New York,

acquires the Wind MIDI Controller WX7 for its


collection.
Yamaha ships the world's first CD recorder.
1990
Yamaha opens a showroom in what was
formerly East Berlin.
1991
Production of pianos and wind instruments both
surpass the 5-million mark.
The Junior Original Concert program celebrates
its 20th anniversary.
The Museum of Modern Art, New York, adds
the Active Servo Processing Speaker YST-SD 90
to its collection.
1992
Fin Christian Jagge (Norway) wins a gold medal
in the Albertville Winter Olympics with
PROTO-SL skis.
Yamaha receives a letter of citation from the
Vienna Philharmonic Orchestra.
Kemble & Company (U.K.) receives the Queen's
Award for Export Achievement.
1993
Yamaha creates the world's first forged titanium
golf clubs.
Yamaha debuts the Silent Piano series, the VL1
and VP1 Virtual Acoustic Synthesizers, and the
CD-Recorder CDE-100, CDE-100H10.
1994
Yamaha markets the Grand Piano Silent Series.

1995
Yamaha introduces the Silent Brass System and
the GranTouch digital piano.
1996

Yamaha releases the DTX Silent Session Drum.

1997
Yamaha Kagoshima Semiconductor facilities
achieve ISO14001 Certification.
Stanford University and Yamaha unveil the
Sondius-XG joint licensing program.
Ryuichi Sakamoto debuts Internet MIDI Live.
Yamaha markets a Silent Violin.
1998
Kakegawa Piano Factory and Yamaha
Electronics Manufacturing (Malaysia) Sdn. Bhd.
achieve ISO14001 Certification.
Denis Matsuev plays a CFIIIS concert grand to
place first in the Tchaikovsky International
Piano Competition.
Yamaha markets a Silent Cello.
Yamaha combines proprietary technologies to
create the Digital Sound Field Processor, a
standard-setting home theater system.
1999
Yamaha's Iwata Metal, Yamaha Metanix Inc.
and Saitama Brass factories achieve ISO14001
Certification.
Yamaha markets a multimedia speaker system
for PCs.
2000

Yamaha launches the mLAN (New Digital


Network Interface Technology) Licensing
Campaign.
Yamaha begins Mobile Phone Ringer Melody
Distribution Service in Japan and Taiwan.
Yamaha crafts a selection of commemorative
pianos to celebrate one hundred years of piano
manufacturing.
Yamaha founds a record company, Yamaha
Music Communications Co., Ltd.
2001
Yamaha establishes Audio & Video Products
Sales Subsidiary in Shanghai.
All Yamaha Production Sites achieve ISO14001
Certification.
Yamaha establishes Musical Instrument Sales
Subsidiary in South Korea.
Yamaha markets a Silent Guitar.
2002
Yamaha closes Archery Products Business.
Yamaha markets a Silent Viola.
Yamaha markets an Elecrtic Violin.
Yamaha establishes Investment Holding
Company in China
Yamaha establishes AV/IT Manufacturing
Company in Suzhou,
China, Yamaha
Electronics (Suzhou) Co., Ltd., .
Yamaha establishes Holding Company in
Europe.

2003

Yamaha markets "Vocaloid" Singing Synthesis


Technology.
Yamaha establishes Musical Instrument
Manufacturing Subsidiary in China
Yamaha withdraws from CD-R/RW Business

PRODUCTS

&
SERVICES

PRODUCTS & SERVICES


Products
Musical Instruments
Music Production
Professional Audio
Consumer Audio &
Video
Computer
Peripheral
LSI & Electronics
Devices
IP Conference
System
Software
Country & Regions:
North America

Canada

Europe

United States

Austria

Belgium

Latin America

Brazil

Denmark

France

Asia / Middle East / Africa / Oceania

Australia

Brunei

Cambodia

China

Mexico

Germany

India

Ireland

Korea

Italy

FINANCIAL
HIGHLIGHTS

Financial Highlights
Yamaha Corporation and Consolidated Subsidiaries
Years ended March 31
Millions
of

U.S.

Dollars
Millions of Yen
(Note 2)
FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 FY2008.3
For the year:
Net sales (Note 1)
Operating income
Net income
At year-end:
Total net assets
Total assets

539,506 534,079 534,084 550,361 548,754 $5,477.13


45,056
35,695
24,135
27,685
32,845
327.83
43,541
19,697
28,123
27,866
39,558
394.83
259,731 275,200 316,005 351,398 343,028 $3,423.77
508,731 505,577 519,977 559,031 540,347 5,393.22

U.S.
Dollars
Yen
Per share:
Net income
210.63 95.06
136.04 135.19 191.76
Net assets
1,259.28 1,334.51 1,532.62 1,680.91 1,646.44
Cash
dividends
15.00
20.00
20.00
22.50
50.00
(Note 3)
Notes:
1. Figures for net sales do not include national consumption tax.

(Note 2)
$1.91
16.43
0.50

2. U.S. dollar amounts are translated from yen, for convenience only, at the rate of
100.19=US$1.00, the approximate rate of exchange on March 31, 2008.
3. A per-share dividend for FY2008.3 includes special dividend of 20.

Corporate Citizenship
Products and Services Attuned to People's Needs, in Harmony with the Environment
At Yamaha, we believe that our most fundamental reason for being is to contribute
to the enhancement of the quality of life everywhere we do business. Here are three
of the most important ways we work to achieve that goal.

Making Music Around the World: The Yamaha Music Foundation


Since its creation in 1966, the Yamaha Music Foundation has coordinated an
enormous range of Yamaha corporate endeavors, all dedicated to nurturing and
enhancing the love of music around the world. In addition to our network of
Yamaha Music Schools, now operating in more than 40 countries, we sponsor
concert series and special events that include Junior Original Concerts and the
International Electone Concours/Festival.

Placing Top Priority on Environmental Issues


Recognizing our relationship with the environment as a vital aspect of our corporate
activities, Yamaha is committed to environmental preservation. In 1993, we
formulated our Environmental Action Plan, adopting voluntary management
standards stricter than legally mandated ones. Our numerous environmental
preservation initiatives include the elimination of ozone-depleting substances from
our manufacturing processes, the adoption of energy conservation policies, the
reduction of waste products, and commercialization of environmentally sound
products.

By March 2003, all of our production facilities in Japan and overseas and the
majority of our resort facilities had acquired ISO14001 environmental management
certification, and we are working to extend this certification throughout our
organization.

Yamaha's Global Commitment


Although Yamaha was "born" in Japan, we are today one of the most cosmopolitan
and international companies in our industry, with a network of subsidiaries and
joint ventures in some 20 countries in the Americas, Asia, the Pacific and Europe.
Our manufacturing facilities are spread over 15 locations in seven different
countries. And our products and services are enjoyed by people in virtually every
nation and region on the planet.
At Yamaha, we believe that the love of music is shared by all people. In all our
activities, we are committed to making the world a better, more enjoyable place to
live by enhancing and extending the joys of music to every corner of the globe.
That's why our corporate credo is Creating 'Kando' Together.

Hierarchial Structure of Yamaha Motor Limited


1. Senior Management
Executive Director
Vice President
Associate Vice President
Chief General Manager
Deputy General Manager
2. Middle Management
Department Chief Manager
Manager
Assistant Manager
3. Junior Management
Senior Superintendent
General Supervisor / Superintendent / Senior Engineer
Supervisor / Assistant Superintendent / Engineer

REASONS FOR NOT PURCHASING A MOTORCYCLE


60

51
50

42

40

39

39

HIGH PRICE

UNSAFE

30

20
15

10

0
FAMILY CANNOT
BE
ACCOMODATED

UNECONOMICAL

NO CARRYING
SPACE

DISTRIBUTION
NETWORK

Distribution Network

Yamaha Motor Limited has a very systematic and well developed distribution
network. It uses a very simple, Two-way distribution system, to reach out to its
customers which is as follows :
There are two movements involved in the above distribution system :

1. Primary Movement - From the Plant to the Depot


2. Secondary Movement - From the Depot to the Dealer
Its distribution network covers 500 dealers (which consists of 250 main dealers and
other sub-dealers and stockists) through 22 depots spread all over the country. With
such an extensive distribution network, Yamaha Motor Limited is sure to reach
every part of the country.

Working of the Distribution Network


The working of the distribution network is quite easy to understand. Before the
motorcycles leave the plant, they are levied with the excise, after that they are
transported safely to the depots from where they are transported to the retailers
and then finally to the customers.
Special Cases
There are some special cases in which the delivery of the motorcycles is to be
hurried due to increased demand in a short span of time. Here the distribution
network, which is followed, is as follows:

Over a span of few decades, Yamaha has developed a sound and efficient
distribution system by building good and healthy relations with the depot incharges
and the retailers. Yamaha also provides the necessary incentives to the depots and
the dealers when required.
Benefits from summer training at yamaha motors limited
Summer training in Yamaha Motor Limited was my first step into the corporate
world. It was a great learning experience for me and helped me to a great extent in
acquiring skills that are essential for working in an organisation. This exposure also
helped me in improving my interpersonal and communication skills. I have now
understood the importance of discipline in life and strongly feel that to be successful
in life, one has to be disciplined and focused.
The training proved to be very beneficial for me as it helped me in inculcating
various skills which are as follows:
Team Working
The work environment at Yamaha Motor Escorts Limited gave me an opportunity
to explore my team working skills and gave me a better understanding of how to
work in co-ordination with my colleagues as a team which is a pre-requisite for any
successful corporate house.
Communication Skills
There was a lot of interaction with all types of people working in the organization.
These people included my colleagues, my project guide and other employees. This
helped in improving my interpersonal skills as I learnt to put forward my ideas and

suggestions using the right words and phrases. For the collection of the primary
information on motorcycle segment, I had to communicate with the dealers which
improved my verbal skills. For getting the questionnaires filled by the respondents,
sometimes I had to interact with them in the local language.
After the completion of the project, I submitted a formal report to Yamaha Motor
Escorts Limited, which improved my writing skills.
Time Management
Waste of time is a waste of money. I realized the importance of this phrase during
my one and a half months of summer training. The organization environment,
which I was exposed to, enhanced my time sensitivity and taught me how useful it is
to manage your time and finish the work assigned in time. Regular going to
workplace and reporting on time helped me use my time in the most efficient
manner.
Data Analyzing Skills
The data collected by me through questionnaires had to be analysed and put in a
desired manner. I was required to present the data in the form of diagrams
including pie charts, bar diagrams, multiple bar diagrams, which greatly helped me
enhance my analytical skills.

Computer Skills
In the course of my training, I got an opportunity to work on different computer
programs like MS Excel, MS PowerPoint, etc., which helped me improve my
knowledge about computers. Also for the collection of some primary data, I had to
surf the net, whereby I learnt to work my way around the net.

Decision-Making Skills
As I was given the authority to frame the questionnaires, some important decisions
regarding the framework of questionnaires had to be taken by me. This made me
realize that decision-making is an integral part at every level in the corporate
hierarchy and helped me to take quicker and wiser decisions.
Listening Skills
I also developed very good listening skills during my summer training project. I had
to be very attentive while listening to the instructions given by my project guide. I
also learnt the art of listening to other peoples suggestions and taking them into
account.
Personality Development
Above all the skills that I have acquired working at Yamaha Motor Escorts Limited,
the most important is the overall development in my personality. I learnt how to be
patient and tolerant towards the varied moods of the respondents. Taking decisions
and handling responsibilities boosted my self-confidence. The encouragement and
continuous support of my superiors and colleagues made me more determined and
motivated towards my work, inspite of the difficulties faced by me at every step.

Scope for Improvement


I feel that there is still a lot of scope for improvement in my personality and my
interpersonal skills. I should learn more on the art of interacting with people.
I would like to conclude by saying that my summer training experience helped me in
preparing for my future pursuits and encouraged me to believe in my abilities. The

constant encouragement by my superiors motivated me to do the best and helped


me to look at every obstacle as a springboard to success.

FACTORS INFLUENCING PURCHASE


50

47

45

42
40

40
35
29

30

24

25
20

15
15
11
10
5

VI
SI
BI
LI
TY

VI
EW
S

AD
RO
O
N

M
AG

AZ
IN
E

AD
S
TV

DE
AL
ER

AD
S

NE
W
SP
AP
ER

FA
M
IL
Y/
FR
IE
ND
S

M
EC
HA
NI
C

M
Y

PR
IC
E

NO

LO

EC
O

RE
SA
LE
E

13

VA
LU
E

IM
AG

W
ER

20

BR
AN
D

30

PO

34

M
PI
AI
CK
NT
UP
AI
NE
NC
E
CO
ST

KS
DU
R
AB
IL
IT
Y

FU
EL

SELECTION CRITERIA

80

70
71

60

50

40
32

29

21
17
12

10
9

Progression of Products of Escorts Group


A chronological view of introduction of Escorts products
1954 - Piston rings and cylinder lines tractors
1962 - Motorcycle, Railway couplers
1963 - Automatic shock absorbers
1965 - Escorts tractors
1969 - Ford tractors
1960 - Pistons
1961 - Assembly of
1971 - Industrial and Construction equipment
1979 - Excavator loaders
1981 - Yamaha RX100 (100cc motorcycle)
1985 - Electronic EPABX
1991 - Harvester combines
1992 - VSAT satellite communication systems
1994 - Manufacture of 50cc moped
1996 - Joint venture with Yamaha Motor Company, Japan
Additional Information on YML
Company Name : Yamaha Motor Limited
Location : Faridabad (Suburb of New Delhi)
Established : November, 1995
Representative Director : Mr. Tadayoshi Suganuma (Currently Joint Managing
Director of YMEL)
Capital : 270 million rupees (approx. 6.2 million U.S. dollars)
Employees : Approx. 3,400
Site Area : 404,182 m2

Building Area : 111,446 m2

Business : Manufacture and marketing of motorcycles


Projected Sales : FY 2003 : Approx. 440,000 units/year (approx. 14.9 billion rupees
or 343 million U.S. dollars)

Competitors Key Players


The key players in the motorcycle segment are as follows :
The motorcycle majors - Hero Honda, Yamaha Motor Ltd., TVS -Suzuki &
Kawasaki Bajaj dominate the industry. These players account for about 92% of the
total motorcycle sales. These four players cover both categories of motorcycles, the 2
- stroke and the 4 - stroke models. Hero Honda and Kawasaki Bajaj industries are
involved in the production of 4-stroke models only. TVS - Suzuki is providing only 2
- stroke models. Whereas Yamaha Motor Ltd. is the only group to produce both 2
-stroke and 4 - stroke models.
In present scenario, the Hero Honda group is the market leader in motorbike
industry. They are producing models which are highly appreciated by the customers
and match with the market demand and requirements.

Low sales of Yamaha crux


An ambitious target of doubling sales this year to three lakh motorcycles
The Yamaha Crux made a very quiet and unannounced entry, without much
fanfare as a first taste of Japanese strategy after Yamaha took 100% control over
the joint venture with Escorts. The bike therefore does not carry the latter name.
Obviously they felt that price alone was the sole criterion. At almost 9,000 rupees
less than their earlier offering the YBX, there is some sense in this and the Crux
has crossed in 2 months the sales figure of the YBX, even without any advertising.

REASONS FOR NOT PURCHASING A MOTORCYCLE

60

51
50

42

40

39

39

HIGH PRICE

UNSAFE

30

20
15

10

0
FAMILY CANNOT
BE
ACCOMODATED

UNECONOMICAL

NO CARRYING
SPACE

DID YOU KNOW ABOUT CRUX AT THE TIME OF


BUYING YOUR BIKE

37%
YES
NO
63%

DID YOU GO TO SEE CRUX AT ANY OF YMEL DEALER

39%
YES
NO
61%

O
AD

W
NS
IT

O
TH
ER

AD
S

10

M
EC
HA
NI
C

AN
Y

DE
AL
ER

VI
SI
BI
LI
TY

YM
EL

RO

M
M
ER
CI
AL

10

NE
W
SP
AP
ER

CO

FR
IE
ND

TV

HOW DO YOU KNOW ABOUT CRUX

12

10
10
9

8
7

4
3

2
2

DID YOU GO FOR TEST DRIVE OF CRUX

27%

YES
NO

73%

REASONS FOR NOT LIKING CRUX

2%
12%

17%

BRAND IMAGE
POOR MILEAGE
5%
REPUTATION OF DEALER NOT
GOOD

8%

COLOURS
LESS POWER
FRIENDS DID NOT ADVISE
25%

MECHANIC DID NOT ADVISE


BODY STYLING

28%
3%

DID YOU KNOW ABOUT CRUX AT THE TIME OF BUYING YOUR BIKE

37%
YES
NO
63%

DID YOU GO TO SEE CRUX AT ANY OF YMEL DEALER

39%
YES
NO
61%

N
VI
SI
BI
LI
TY

O
TH
ER

DE
AL
ER

M
EC
HA
NI
C

AN
Y

CO
M
M
ER
CI
AL

AD

10

YM
EL

TV

RO

IT

AD
S

W
NS

NE
W
SP
AP
ER

FR
IE
ND

FROM WHERE DID YOU COME TO KNOW ABOUT CRUX

25
22

20
20
18

15
13

9
8

5
4

FUNCTIONS
OF
THE
DEPARTMENTS

Functions Of The Various Departments In Yamaha Motor Limited


To understand the working of the complete plant, one has to know the working of
each department.
Functions have been divided into five important departments:

Manufacturing Operations

Marketing

Product Engineering

Finance

Project

Manufacturing Operations
The group comprises of manufacturing engineering, industrial engineering,
planning and control, material, manufacturing, quality control and inspection, plant
engineering/maintenance, personnel, administration & finance.
Manufacturing Engineering
Manufacturing engineering comprises of process engineering, project planning , tool
room, tool maintenance, CNC machines and tooling S.P.M capital budgeting.
Usefulness Of The Project
The project carried out by me proved to be very beneficial. The parties which got
the benefits include :

Yamaha Motor limited

We were able to identify the lack of awareness about Yamaha Crux. This would
certainly help Yamaha in framing its future promotional policies.

The weaknesses and the threats, which Yamaha Crux is facing were also
identified in the SWOT Analysis. This would help YML in taking some
preventive measures.

In the SWOT Analysis, some important opportunities were identified. This


would help YML as it could make use of these opportunities.

Customers

Through the market survey, we were able to identify the reasons why people did
not like Crux. So this would invariably help the customers because they will get
a product, which suits their taste.

With more promotional activities as suggested by me, the customers will be able
to identify the product.

Stakeholders

With the increase in the awareness level of Yamaha Crux, more and more people
will buy it, thereby increasing the profits of the company, which will directly
benefit the shareholders.
Distributors

They will now get more incentives than before.


If the profit of the company increases, their profit will also increase.

LIMITATIONS

Limitations
Although the research work carried out was successful, but there were some
limitations, which are as follows:

Duration for the training was short.

Respondents might not have given the correct information.

The sample area was concentrated to New Delhi only and other cities could not
be covered due to lack of time.

The sample size of the research was very small, which may have given some
wrong picture.

CONCLUSIONS

Conclusion (Switch Over Trends)

In the scooter market, our main objective was to find out the number of customers
who want to shift from scooters to motorcycles.
Analyzing the market survey, we concluded that:
34% of the scooter owners plan to buy a motorcycle in the future. Out of these 34%
customers:
33% customers want to buy within 1 year
33% customers want to buy after 1 year
19% customers want to buy within 6 months
10% customers want to buy within 3 months
5% customers want to buy within 1 month
66% of the scooter owners do not plan to buy a motorcycle in future. From these
66% customers, we enquired about the awareness of Yamaha Crux and the results
were as follows:
65% customers do not know about Yamaha Crux
35% customers know about Yamaha Crux

RECOMMENDATIONS

Recommendations
However the company implemented the change process effectively, but there were
still some weaknesses. So, I would recommend some ideas, which the company could
have implemented for a successful change process and I will also give some
recommendations on future measures, which the company can take to bring about
effective change. These are as follows:

YMI went for the installation of new machinery to cope up with the
technological changes. Instead of installing the new machinery, they could have
got the old machinery upgraded. This would have saved a lot of extra cost
incurred.

YMI must respond to changes in its environment quickly. When competitors


introduce new products or services, government agencies enact new laws,
important sources of supply go out of business, or similar environmental
changes take place, YMI should respond quickly and should make plans to
implement changes so as to bring about an effective and a planned change
process. This type of a change process will ensure less resistance from the
employees.

YMI must try to build good relations between employees in the organization, as
the people working in the organization are a mixture of Japanese and Indians,
which are totally different cultures. So maximum co-ordination between the
Indians and the Japanese employees should be forced so as to improve the
overall efficiency of the employees.

To improve the working environment within the organization, YMI should


organize cultural programmers so as to get the Japanese and the Indian culture
together. This would fill up the cultural gaps between employees in the
organization and they would respect each others cultures, which in turn is good
for a bright future of the company.

They should do advertising of the Yamaha crux, as when this bike was
introduced there was no publicity at all so, I recommend there should high
level publicity so that it create awareness in the market. As awareness will
create demand automatically.

QUESTIONNAIRE

QUESTIONNAIRE (Scooter Owners)


NAME : __________________
PHONE : _________________
AGE : ____________________
ADDRESS : _______________
OCCUPATION :
BUSINESS

SERVICE

STUDENT

OTHERS

SELF EMPLOYED

MONTHLY INCOME (in Rs) :


5000 - 10000
20000 - 25000

10000 - 15000

15000 - 20000

25000 & ABOVE

MARITAL STATUS :
SINGLE

MARRIED

IF MARRIED, HOW MANY MEMBERS ARE THERE IN YOUR FAMILY :


TWO

THREE

FIVE

FIVE

FOUR

& ABOVE

Q1) WHICH SCOOTER DO YOU OWN


MODEL: ________________
YEAR: __________________
Q2) WHCH VEHICLE DID YOU OWN PREVIOUSLY
_________________________
Q3) WHY DID YOU PURCHASE THIS SCOOTER (MARK ONE OR MORE
CHOICES)
BETTER FUEL EFFICIENCY
BETTER STYLING

MORE POWER

LOW MAINTENANCE

REASONABLE PRICE

SAFETY

Q4) WHAT INFLUENCED YOU TO BUY THIS SCOOTER (MARK ONE OR


MORE CHOICES)
SPOUSE

CHILDREN

SELF

PERCEPTION
PARENTS

FRIENDS

FINANCE SCHEMES

MECHANIC

ADVERTISEMENT

Q5) HOW WOULD YOU EVALUATE YOUR PRESENT SCCOTER


GOOD

AVERAGE

POOR

COMMENTS

MILEAGE

____________

STYLING

____________

POWER

____________

MAINTENANCE

____________

STABILITY

____________

STARTING

____________

Q6) FOR WHAT PURPOSE DO YOU GENERALLY USE YOUR SCOOTER


FOR GOING TO WORK

FOR GOING TO COLLEGE

FOR FAMILY PURPOSE

FUN RIDING

Q7) DO YOU PLAN TO BUY A MOTORCYCLE


YES

NO

IF YES, GO TO Q9) & PROCEED FURTHER


OTHERWISE, ATTEMPT Q8) & STOP
Q8) IF NO, WHAT ARE THE REASONS (MARK ONE OR MORE CHOICES)
UNECONOMICAL

HIGH PRICE

FAMILY CANNOT BE

ACCOMODATED
UNSAFE

NO CARRYING SPACE

Q9) IF YES, WHY DO YOU WANT TO BUY A MOTORCYCLE (MARK ONE


OR MORE CHOICES)
MORE POWER

ECONOMY/MILEAGE

BETTER

STYLING
MORE COMFORTABLE

MORE SAFE

OTHER

REASONS
Q10) WHICH KIND OF MOTORCYCLE DO YOU WANT TO PURCHASE
TWO STROKE

100CC

125CC

FOUR STROKE

150CC

150CC & ABOVE

Q11) WHEN ARE YOU PLANNING TO BUY A MOTORCYCLE


WITHIN 1 MONTH

WITHIN 3 MONTHS

WITHIN 6 MONTHS

WITHIN 1 YEAR

AFTER 1 YEAR
Q12) WHICH OF THE AVAILABLE MOTORCYCLES DO YOU WANT TO
PURCHASE (MARK ONE OR MORE CHOICES)
SPLENDOR

CALIBER

PASSION

YBX 125

BOXER

CBZ

FIERO

LML

SAMURAI

YAMAHA RX135

CD 100/SS

ANY OTHER

__________
Q13) WHY DO YOU WANT TO GO FOR THIS PARTICULAR MODEL (MARK
ONE OR MORE CHOICES)
FUEL EFFICIENCY

LOW MAINTENANCE

BETTER

STYLING
MORE POWER

BRAND IMAGE

REASONABLY PRICED

BETTER FINANCIAL SCHEMES

TWO STROKE

FOUR STROKE

DURABILITY

ANY OTHER

Q14) WHICH NEWSPAPER DO YOU READ


_________________________
Q15) AT WHAT TIME DO YOU GENERALLY WATCH TELEVISION

6 PM - 8 PM

8 PM - 10 PM

10 PM - 12 PM

ANY OTHER

TIME

Q16) WHICH CHANNELS AND PROGRAMMES DO YOU GENERALLY


WATCH
1._________________________
2._________________________
3._________________________
Q17) DO YOU KNOW ABOUT YAMAHA CRUX
YES

NO

Q18) FROM WHERE DID YOU COME TO KNOW ABOUT YAMAHA CRUX
(MARK ONE OR MORE CHOICES)
TELEVISION

NEWSPAPER

FRIENDS

MAGAZINE

MECHANIC

DEALER

ON ROAD VISIBILITY

ANY OTHER _______________


Q19) DO YOU KNOW THAT YAMAHA CRUX IS REASONABLY PRICED AND
GIVES A GOOD MILEAGE
YES

NO

Q20) YOUR IDEA ABOUT THE FOLLOWING


SPLENDOR

CALIBER

PRICE __________
MILEAGE _______
CD 100/SS

PRICE __________
MILEAGE _______
CRUX

PRICE __________

PRICE __________

MILEAGE _______

MILEAGE _______

QUESTIONNAIRE (Splendor / Caliber / CD 100/SS Customers)

NAME : __________________
PHONE : _________________
AGE : ____________________
ADDRESS : _______________
OCCUPATION :
BUSINESS

SERVICE

STUDENT

OTHERS

SELF EMPLOYED

MONTHLY INCOME (in Rs) :


5000 - 10000

10000 - 15000

20000 - 25000

25000 & Above

15000 - 20000

MARITAL STATUS :
SINGLE

MARRIED

IF MARRIED, HOW MANY MEMBERS ARE THERE IN YOUR FAMILY :


TWO

THREE

FOUR

FIVE

FIVE & Above

VEHICLE OWNERSHIP DETAILS :


PREVIOUS VEHICLE
MODEL : _______________

CURRENT VEHICLE
MODEL : _______________

YEAR : _________________

YEAR : _________________

USAGE : _____ Km/Day (AVERAGE)


PILLION RIDING (%) :

OFTEN

SOMETIMES

Q1) WHICH FACTORS INFLUENCED YOU TO BUY THIS MOTORCYCLE


(RANK FIRST 3 PRIORITIES)
TV ADS

PRINT/NEWSPAPER ADS

DEALER

MECHANIC

FAMILY/FRIENDS

AUTO MAGAZINE VIEWS

ON ROAD VISIBILITY
Q2) WHILE SELECTING, WHICH OF THE FEATURES WERE THE MAIN
CRITERIA (RANK FIRST 3 PRIORITIES)
PRICE

BRAND IMAGE

FUEL ECONOMY

LOOKS/STYLING

DURABILITY

LOW MAINTENANCE COST

PICKUP

POWER

RESALE VALUE

Q3) IMPRESSION ABOUT YOUR MOTORCYCLE


GOOD

AVERAGE

POOR

COMMENTS

LOOKS

___________

POWER

___________

PICKUP

___________

MAINTENANCE COST

___________

(MARK GOOD IF LESS MAINTENANCE COST)


RIDING COMFORT

___________

STABILITY

___________

OTHER _____________

___________

Q4) WHAT IS THE FUEL EFFICIENCY (EXPECTED, IF NOT CALCULATED)


OF YOUR MOTORCYCLE
a) CALCULATED __________

b) EXPECTED __________

[ONLY ONE OF THE ABOVE IS TO BE FILLED]


Q5) WHICH NEWSPAPER DO YOU GENERALLY READ
__________________________
Q6) WHICH TV CHANNELS DO YOU GENERALLY WATCH
1. _______________________
2. _______________________
3. _______________________
Q7) BEFORE PURCHASING YOUR BIKE, COMPARISON WITH WHICH
OTHER MODEL DID YOU MAKE AND WHY

MODEL : __________

REASONS : _______________

__________

_______________

__________

_______________

Q8) DID YOU KNOW ABOUT YAMAHA CRUX AT THE TIME OF BUYING
YOUR MOTORCYCLE
YES

NO (IF NO, PLEASE DO NOT ATTEMPT FURTHER)

IF YES,
Q9) HOW DO YOU KNOW (MARK ONE OR MORE CHOICES)
NEWSPAPER ADS

TV COMMERCIAL

YAMAHA DEALER

FRIENS OWNS IT

MECHANIC

ON ROAD

VISIBILITY
ANY OTHER __________
Q10) DID YOU GO TO SEE CRUX AT ANY OF YAMAHAS DEALER OUTLET
YES

NO

Q11) DID YOU HAPPEN TO TESTDRIVE CRUX ANY TIME


YES

NO

Q12) REASONS FOR NOT LIKING CRUX (MARK ONE OR MORE CHOICES)
HIGH PRICE
POOR MILEAGE
HIGH MAINTENANCE COST
BRAND IMAGE NOT GOOD
FRIENDS DID NOT ADVISE
MECHANIC DID NOT ADVISE

REPUTATION OF DEALER NOT GOOD


POOR BODY STYLING
COLOURS/GRAPHICS NOT GOOD
LESS POWER
Q13) DO YOU KNOW THAT YAMAHA CRUX IS REASONABLY PRICED AND
GIVES A GOOD MILEAGE
YES

NO

Q14) WHAT IS YOUR PERCEPTION OF THE PRICE (Ex - Showroom) AND


MILEAGE OF THE FOLLOWING MODELS
SPLENDOR

CALIBER

PRICE __________
MILEAGE _______
CD 100/SS

PRICE __________
MILEAGE _______
CRUX

PRICE __________

PRICE __________

MILEAGE _______

MILEAGE _______

BIBLIOGRAPHY

BIBLIOGRAPHY

www.yamahamotor.com
www.google.com
www.wikipedia.com
Books:
Research & Methodology : C. R. Kothari