CHAPTER – 1

1.1 Introduction
1.2 Need & Scope for study
1.3 Objective for study
1.4 Methodology
1.5 Limitation of the study

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 1.1 Introduction

Yamaha began competing internationally in 1956 when they entered

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

By 1963 Yamaha's dedication to both the two-stroke engine and

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

In 1968 Yamaha launched their first four-stroke motorcycle, the XS-

1. The Yamaha XS-1 was a 650cc four-stroke twin, a larger and more
powerful machine that equaled the displacement and performance of the
popular British bikes of the era, such as the Triumph Bonneville and BSA
Gold Star. Yamaha continued on with both the two-stroke line and four-
stroke twins at a time that other Japanese manufacturers were increasingly
2
moving to four cylinder four-stroke machines, a trend led by Honda in 1969
with the legendary CB-750 four-stroke four-cylinder cycle.

Yamaha bikes are costly when compared to Bajaj motor bikes -

Yamaha put a lot of investment in Research and Development to

make their engines durable and be able to retain their power in long term
(no compromise). Many Baja motor bikes have derived their engines from
their counterparts, thus lack of Research and Development.

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 1.2 Need for the Study

The research was carried out of find factors which influence customer
satisfaction level to maximum level. The study project change in various
satisfaction level change with change in various factors like during sales
evaluation, during delivery of the vehicle and after sales evaluation. This
research is an attempt to provide feedback to motorcycle manufacturer
Yamaha motors India Ltd. So that they can bring about change in various
departments of their organization which will help then in becoming number
1 motorcycle brand in India?

The study also gives clear picture on comparison between Yamaha

motor cycle and Bajaj motor cycle. Differentiation in its models as well as
price is considered.

For instance during research factors such as technology,

maintenance, looks, styles, band, image, behavior of dealer, timely
delivery of documents and bike and proper information about the product
were considered.

This research would give necessary details to Yamaha motors so

that it could know the various factors that affect in competing with Bajaj
motors and customer satisfaction level and then initiate appropriate change
to make it number 1 branded motor cycle in India.

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 1.3 Objectives of the Study

* To study the customer satisfaction towards Yamaha motors including all

models.

* To know customer satisfaction level regarding product & service.

* To evaluate the customer preferring the brand quality.

* To help you develop ability to apply multidisciplinary concept, tools and

techniques to focus on organizational problems and arrive at / report

solution.

* To study demographic and psychographic profile of potential customers

ofmotorcycles in NCR ( who have purchased their motor cycle in year,

2018).

* To study customer satisfaction towards product and service offered by

both Yamaha and Bajaj company.

* To study the competitor bike I.e. BAJAJ.

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 1.4 Research Methodology

Descriptive research is followed in this research through both Primary

and Secondary Data. The universe of the population includes the
respondents who are the customers of Yamaha bikes located at
SRIKAKULAM. The samples (i.e. sample size 100) were selected among
the customers of Yamaha show rooms, located at SRIKAKULAM for
this research. The samples were chosen from the population, by using
Convenience sampling technique (i.e. Non-probability sampling technique),
because the exact population size is unknown and the accessibility of the
customer is difficult. Survey method of data collection was used in this
research.

PRIMARY DATA:The primary data were collected using structured

questionnaire.

SECONDARY DATA:The Secondary Data were collected through

newspaper articles, magazines and internet.

SAMPLING METHODOLOGY:The process of collecting , observation, from

the elements of a large population may be expensive , time consuming,
and difficult. It will be cheaper and quicker to collect information from a
sample plan of the population. A sample is a subset of population through
a valid statistical procedure so that it can be regarded as representative
of the entire population. The valid statistical procedure of drawing sample
from the population is called SAMPLING . Sampling plan consists of the
following elements:
SAMPLING TECHNIQUE: Well-structured questionnaire and personal
Interviews.
SAMPLE UNIT: Colleges, Malls, Roadside(Especially targeted youth)
SAMPLE SIZE :100; SAMPLING AREA : SRIKAKULAM.
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 1.5 Limitations of the Study

1. The study is conducted in Yamaha show rooms located in

Srikakulam with 100 respondents.

2. The respondents’ response may have the bias, which may not give
true picture about the chosen research topic.

3. The sampling unit chosen is Yamaha bike show rooms located in

Srikakulam, the survey result may vary in other locations, based on
the kind of services provided at other stores.

4. Time duration was short.

5. Due to non-availability of mode of transport towards village area

created a lot of inconvenience was faced during survey.

6. During the course of survey some unavoidable errors are faced such
as response, in accuracy in response.

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CHAPTER – 2
Company Profile

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Companies in this industry manufacture motorcycles, mopeds, and motor
scooters. Major companies include JiangmenDachangjiang Group, Lifan
Industry (Group), Loncin Motor, and Zongshen Industrial Group (all based
in China); BMW (Germany); Hero MotoCorp (India); Honda, Kawasaki,
Suzuki, and Yamaha (Japan); and Harley-Davidson and Polaris (the
US).Revenue for the global motorcycle manufacturing industry is expected
to grow by about 4% per year, reaching $120 billion by 2020, according to
The Freedonia Group. Leading countries for motorcycle manufacturing
include China, India, and Japan.

The two-wheeler industry in India has grown rapidly in the country

since the announcement of the process of liberalization in 1991 by the then
finance minister Dr. Manmohan Singh, now Prime Minister of
India.Previously, there were only a handful of two-wheeler models available
in the country. Currently, India is the second largest producer of two-
wheelers in the world. It stands next only to China and Japan in terms of
the number of two-wheelers produced and the sales of two-wheelers
respectively. In the year 2005-2006, the annual production of two-
wheelers in India stood at around 7600801 units.

The trend of owning two-wheelers is due to a variety of facts peculiar

to India. One of the chief factors is poor public transport in many parts of
India. Additionally, two-wheelers offer a great deal of convenience and
mobility for the Indian family.Bajaj auto began trading in imported Vespa
Scooters in 1948. Meanwhile Automobile Products of India (API)
commenced production of scooters in the country in the early 50's. Until
1958, API and Enfield were the only producers of two-wheelers in India.
However, Bajaj signed a technical collaboration in 1960 with Piaggio of
Italy to produce Bajaj Scooters. This deal expired in 1971.

9
 The condition of motorcycle manufacturers was no different. Until the
mid 80's, there were only three major motorcycle manufacturers in India
namely Rajdoot, Escorts, and Enfield. The two-wheeler market was opened
to foreign manufacturers in the mid 80's. The industry, which had seen a
smooth ride before, faced fierce foreign competition. Motorcycle companies
like the Yamaha, Honda, and Kawasaki, set up shop in India in
collaboration with various Indian two-wheeler companies. Companies like
Escorts, Rajdoot and faced immense competition from smaller 100 cc
Japanese technology motorbikes. Bikes manufactured by Hero Honda, the
only company manufacturing four-stroke bikes at that time, gained
massive popularity.

In the mid 80's, Kinetic introduced a variomatic gearless scooter in

collaboration with Honda. This scooter became instantly popular with the
younger generation, especially people who found it difficult to use geared
scooters. The introduction of scooterettes created another segment for
people such as women and teenagers who could not get used to driving
either motorcycles or gearless scooters. Many companies such as Kinetc,
TVS, and Hero also started manufacturing mopeds that proved immensely
popular with people who wanted a simple riding machine. The change in
the government's policy owning to pollution control norms and the Kyoto
agreement saw the phasing out of two stroke two-wheelers from
production. Currently there are around 10 two-wheeler manufacturers in
the country, they being Bajaj, Hero, Hero Honda, Honda, Indus, Kinetic,
Royal Enfield, Suzuki, TVS, and Yamaha.

The latest trend in the two-wheeler market is the introduction of

electrically operated vehicles from a range of manufacturers such as Indus
and Hero. These can be recharged from convenient household electrical

10
points. The only disadvantage is speed, which is restricted to around 25
miles per hour.

Currently, the motorcycle market is witnessing a demand for higher

volume engines. Previously, the 100 c bikes were very popular owning to
the high fuel efficiency offered. However, the market is maturing fast.
Sensing this movement, Bajaj has introduced the Bajaj Pulsar, with 150,
180 and 200 cc engines with Dual Twin Spark Ignition (DTSi) technology.

The Indian two-wheeler industry is characterised by well- entrenched

competition evident from the presence of 12 vehicle manufactures. Hero
Honda Motors Limited (HHML) is the leader in the two-wheeler market with
a market share of 41.4 percent in financial year 2007, followed by Bajaj
Auto Limited or BAL (26.7 percent), and TVS Motor Company or TVS (18.1
percent). Thus, three players account for around 86.2 percent of total
domestic sales of two- wheeler in the Indian market. The industry is
concentrated with five players accounting for 97.7 percent of sales, and
five players each having a market share of less than 0.5 percent. This
chapter explains the performance of leading seven two-wheeler companies.

The US motorcycle manufacturing industry includes about 70

establishments (single-location companies and units of multi-location
companies) with combined annual revenue of about $5 billion.

COMPETITIVE LANDSCAPE

Personal income and interest rates drive demand. The profitability of

individual companies depends on volume and sales of high-margin
accessories and add-ons. Large companies enjoy economies of scale in
purchasing and in maintaining dealer networks. Small manufacturers
compete by offering highly customized products. The US industry is highly
concentrated.
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PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include street bikes, such as cruisers, sport bikes,

standards, and touring motorcycles; off-road cycles designed for dirt and
mountain terrain; scooters; and dual sport bikes designed for both road
and off-road usage.Motorcycles are typically produced on assembly lines,
similar to how the auto industry makes cars. Parts are received from
outside sources (either third-party companies or other corporate-owned
plants), usually on a just-in-time basis. Beginning with the basic steel or
aluminum frame, the product proceeds.

The motorcycle represented a first step from the bicycle to the

automobile. The simple expedient of attaching a gasoline-powered engine
to a bicycle frame produced a device that was at once exotic and
affordable. During the early 1900s, more than 100 companies began
manufacturing motorcycles, including Harley-Davidson, Indian, Orient,
Excelsior, Cyclone, Henderson, and Marsh. By 1915, they produced models
that could exceed 100 mph. The 1915 Cyclone, designed specifically for
racing, could reach speeds of 124 mph but had no throttle and no brakes.
Harley-Davidson began production of its first model, the Silent Grey Fellow,
in 1903, the same year Henry Ford unveiled the Model A.

When Ford introduced his mass-produced Model T in 1913 and sold it

for $500, most motorcycle manufacturers could-n't compete. After World
War I, only Harley-Davidson, Indian, and Excelsior remained. By 1953,
only Harley-Davidson remained.

With the OPEC oil embargo of the early 1970s, motorcycles became
popular for commuting—but not the Harley. Consumers wanted cheap,
reliable, peppy bikes, and those came from Japan. In 1973, sales of
motorcycles reached an all-time high of 1.5 million. In 1983, Harley-
12
Davidson sought and received tariff protection from the Reagan
administration to help it battle Japanese competition. Even with the 45
percent tariff protection, the company was almost bankrupt by 1985 due to
poor quality and inefficient production. By applying Japanese management
techniques, Harley-Davidson finally reversed its situation and asked for the
tariff to be removed one year before it was due to expire. Meanwhile,
Honda miscalculated the heavyweight motorcycle market, concentrating
instead on small bikes and high-priced, high-tech super bikes.

Significant Events Affecting the Industry

Motorcycles in general enjoyed a modest resurgence in the 1980s and

1990s that continued into the early 2000s. This was due in part to market
demographics. First-time motorcycle buyers and long absent return buyers
more than tripled between 1987 and 1994. Between 1992 and 2001,
Harley-Davidson's net sales increased at a compound annual rate of
approximately 17 percent per year. Sales of similar bikes from Japanese
makers fell 39 percent between 1988 and 1991, but then began to increase
again. The market for smaller and faster "sport-bikes," which appeal
largely to younger riders, was stagnant due to high prices. Sales of off-road
motorcycles, also popular among younger riders, experienced growth
throughout the 1990s. In the early 2000s, many older riders in this
category were buying larger bikes as their levels of disposable income
increased.

Meanwhile, there were signs that the popularity of mountain bikes

was dwindling by the mid-1990s, as the sales of these bikes decreased in
1996 for the first time in 10 years (from $1.6 billion in 1995 to $1.5 billion
in 1996). This was followed by a smaller decrease in sales during 1997,
due in part to falling prices. National Bicycle Dealers Association data
indicated that as of 2000, mountain bikes accounted for the greatest
13
amount (43 percent) of retail sales in bicycle stores, down from 46 percent
in 1999.

But other styles of bicycles continued to enjoy rising demand. Once

again, the baby boomer market was seen as fertile, triggering the
introduction of expensive "nostalgia" bicycles by the likes of Schwinn.
Some automobile manufacturers have begun to produce bicycles under
their own logos, hoping to appeal to customers who want to lead an active
lifestyle (or at least to project that image). These companies include
Mercedes-Benz, Volkswagen, BMW, and Jeep. Bicycles also are being used
more frequently by non-recreational riders such as commuters, couriers,
and police officers

Industry Projections:

Modest growth was expected for the motorcycles portion of the

industry through 2004, due to both economic and demographic factors
(including a decline in the number of children in the key 5- to 14-year-old
age group). Helping to sustain or increase domestic sales was a U.S.
government bill aimed at increasing non-motorized transportation.
Approximately $3 billion in funds could be used for building bike paths and
other facilities friendly to cyclists. Growth in the motorcycle segment was
expected to be somewhat stronger during the same time period. Harley-
Davidson and its competitors were ratcheting up production of their
popular motorcycles in response to continued strong demand.

Global Presence:

The motorcycle and industry has seen the overall value of imports
rise significantly since the late 1990s, from $2.1 billion in 1997 to $3.9
billion in 2000. From 1999 to 2000, values increased almost 31 percent.
Meanwhile, the value of exports has declined, falling from $976 million in
14
1997 to $798 million in 2000. In the late 1990s, the majority of motorcycle
imports came from Japan, while Japan, Canada, and Germany represented
the leading export markets. Large, touring-type motorcycles were a
promising product class for international markets.

Employment in the Industry

The industry employs approximately 1,50,000 workers all over world, with
an annual payroll of about 627 million. These levels make the motorcycle
and bicycle business a relatively major employer on globe.

The two-wheeler industry in India has been in existence since 1955. It

consists of three segments

o Scooters

o Motorcycles

o Mopeds

The increase in sales volume of this industry is proof of its high

growth. In 1971, sales were around 0.1 million units per annum. But by
1998, this figure had risen to 3 million units per annum. Similarly,
capacities of production have also increased from about 0.2 million units of
annual capacity in the seventies to more than 4 million units in the late
nineties.The two-wheeler industry in India began operations within the
framework of the national industrial policy as espoused by the Industrial
Policy Resolution of 1956

This resolution divided the entire industrial sector into three groups, of
which one contained industries whose development was the exclusive
responsibility of the State, another included those industries in which both
the State and the private sector could participate and the last set of

15
industries that could be developed exclusively under private initiative
within the guidelines and objectives laid out by the Five Year Plans.

Private investment was channelised and regulated through the extensive

use of licensing giving the State comprehensive control over the direction
and pattern of investment.Entry of firms, capacity expansion, choice of
product and capacity mix and technology, were all effectively controlled by
the State in a bid to prevent the concentration of economic power.

However due to lapses in the system, fresh policies were brought in

at the end of the sixties. These consisted of MRTP of 1969 and FERA of
1973, which were aimed at regulating monopoly and foreign investment
respectively. Firms that came under the purview of these acts were allowed
to invest only in a select set of industries.This net of controls on the
economy in the seventies caused several firms to operate below the
minimum scale of efficiency Under-utilize capacity andUse outdated
technology.

While operating below the minimum scale of efficiency resulted from the
fact that several incentives were given to smaller firms, the capacity under-
utilization was the result of the capacity mix being determined independent
of the market demand.The policy of distributing imports based on capacity,
causing firms to expand beyond levels determined by demand so as to be
eligible for more imports. Use of outdated technology resulted from the
restrictions placed on import of technology through the provisions of FERA.

In 1975 which took on a more pronounced shape and acquired wider

scope under the New Economic Policy (NEP) in 1985. As part of these
reforms, several groups of industries were delicensed and ‘broadbanding’
was permitted in select industries. Controls over capacity expansion were

16
relaxed through the specification of the operate below the minimum scale
of efficiency of production for several industries.

Foreign investment was allowed in select industries and norms under

the MRTP Act were relaxed.These reforms led to a rise in the trend rate of
growth of real GDP from 3.7% in the seventies to 5.4% in the eighties.

However the major set of reforms came in 1991 in response to a

series of macroeconomic crises that hit the Indian economy in 1990-91.
Several industries were deregulated, the Indian rupee was devalued and
made convertible on the current account and tariffs replaced quantitative
restrictions in the area of trade.

The initiation of reforms led to a drop in the growth of real GDP

between 1990 – 1992, but this averaged at about 5.5% per annum after
1992. The decline in GDP in the years after reforms was the outcome of
devaluation and the contractionary fiscal and monetary policies taken in
1991 to address the foreign exchange crisis. Thus the Industrial Policy in
India moved from a position of regulation and tight control in the sixties
and seventies, to a more liberalized one in the eighties and nineties.

The two-wheeler industry in India has to a great extent been shaped by the
evolution of the industrial policy of the country. Regulatory policies like
FERA and MRTP caused the growth of some segments in the industry like
motorcycles to stagnate. These were later able to grow (both in terms of
overall sales volumes and number of players) once foreign investments
were allowed in 1981. The reforms in the eighties like “broadbanding’
caused the entry of several new firms and products which caused the
existing technologically outdated products to lose sales volume and/or exit

17
the market. Finally, with liberalization in the nineties, the industry
witnessed a proliferation in brands.

Various Companies under two wheeler Industry in India :

1. Bajaj Auto Limited

2. Hero Honda Motors Limited

3 . TVS Motor Company

4. Yamaha Motor India

5. Honda Motorcycles and Scooters India

6. Kinetic Motor Company Limited

Marketing Performance of Companies at National Level-

Trend in Two-wheeler Production in India:

The evolution of ungeared scooterettes, the launch of premium

scooterette models, Japanese motor cycles all found favour with customers
and translated into growth for manufactures. The success can be attributes
to the effect of a large pant-up demand for new products, as the Indian
consumers had very few choices earlier.

Journey of Two Wheeler Industry in India:

The three segments of motorised two-wheelers are Motorcycles,

Scooters and Mopeds. The journey of the Indian Two-wheeler industry can
be described briefly based on the advancements in these segments.

With such humble beginnings, during the decade that led up to 1970,
the two-wheeler industry received encouragement for foreign
18
Collaborations. The production was controlled by the government with
licensing, to meter the number of units being produced in the plants. The
table3 shows the major players in the industry during this time-frame.

Period of Entry:

The decade between 1970-80, perceived an increase in the overall

growth of the industry, on an average of about 15% per annum. Between
1974-79, sales of two-wheelers increased by 60%, while that of cars
declined by 21% and jeeps grew only by 11%4. The main contributing
factor to this increase was a steep hike in the oil prices in 1974. The price
hike, converted most of the car and jeep owners or prospective users of
this segment to two-wheeler buyers/users. This was due to better fuel
efficiency of two-wheelers over cars or jeeps. Thus the two-wheeler
became a popular mode of personal transport.

The 70’s saw a surge in the number of local players of

manufacturing units. Between the 1980-90’s, the policies again saw a shift
towards allowing foreign collaboration for below 100cc. This brought a
whole new realm into the industry, through foreign companies that had
advanced technologies, mainly for the motorcycle segment. Fuel-efficiency
improved by (60-100) % in the new vehicles. In the seventies, motorcycle
mileage was on an average between 25 to 50 kmpl (kilometre per litre),
which had now improved to 50 to 80 kmpl. One major occurrence of this
decade was that several existing but weaker players died out giving way to
new entrants and superior products.

The decade leading upto the end of the millennium, i.e., 1990’s saw a
complete liberalisation of the economy. The industry was deregulated, with
several reforms to make Indian exports competitive. There was an increase
in the number of brands and thus the models and higher competition. This

19
also led to reduction in the sales for each individual brand. The recession of
1993-945, gave way for a decline in the sales numbers. The reasons for
recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant rise in general price
level and credit crunch in consumer financing. The market improved and
made tremendous progress towards the end of the millennium, nearing the
year 2000.

As an overview, the increase in sales volume of this industry is proof

of its high growth. In 1971, sales were around 0.1 million units per annum.
But by 1998, this figure had risen to 3 million units per annum. Similarly,
capacities of production have also increased from about 0.2 million units of
annual capacity in the seventies to more than 4 million units in the late
nineties.

Indian Two-Wheeler Industry in the Global Scenario

The global market for two-wheelers has witnessed a steady growth in

past few years and is expected to grow at a higher pace during 2014-2019.
The major contributors to the demand of two wheelers are the countries in
Asia-Pacific region which will continue to dominate the worldwide demand
in future. The region is the home to the top six markets in the world.

China is the largest national market of two wheeler industry and will
continue to remain at the top followed by India and Indonesia in future.
The demand for two wheelers is highly dependent on the economic stability
and the average income levels of the country. In emerging economies like
China & India, two wheelers are an affordable alternative to walking, riding
bicycle and public transit systems etc. The rising fuel prices can also be a
growth driver for two-wheelers due to their higher fuel efficiency.

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 Since the post economic liberalisation, with reforms and policies
allowing Foreign Direct Investments into India, two wheeler industry has
seen drastic increase in domestic sales within the country. Today, India is
the second largest producer and manufacturer of two wheelers in the
world, and stands next only to China in terms of the number of two-
wheelers produced and domestic sales respectively.Major players in this
market are Honda, Yamaha, Hero Moto Corp., Bajaj Auto, and Suzuki.

COMPANY PROFILE

YAMAHA History

Yamaha Corporation is a Japanese multinational corporation and

conglomerate based in Japan with a wide range of products and services,
predominantly musical instruments, electronics, motorcycles and power
sports equipment. Established in 1887 as a piano and reed organ
manufacturer by Torakusu Yamaha as Nippon Gakki Company, Limited
(literally Japan Musical Instrument Manufacturing Corporation) in
Hamamatsu, Shizuoka , Yamaha’s origins as a musical instrument
manufacturer is still reflected today in the group's logo “ a trio of
interlocking tuning forks” .

It was only after World War II,the company’s then president Genichi
Kawakami decided to use the remains of the company's war-time
production machinery and the company's expertise in metallurgical
technologies to the manufacture of motorcycles.The first Yamaha bike,The
YA-1 (AKA the "Red Dragonfly"), of which 125 were built in the first year of
production (1954), was named in honour of the founder. It was a 125cc,
single cylinder, two-stroke, street bike.The YA-1 was got much appreciation
and its popularity & success resulted in the founding of the Yamaha Motors
Co.,Ltd. Since then,YMC has never looked back and has continued to

21
manufacture 2 wheelers and has acted as a key player in the automotive
industry. Also, Yamaha has grown to become the world's largest
manufacturer of musical instruments , as well as a leading manufacturer of
semiconductors, audio/visual, computer related products, sporting goods,
home appliances, specialty metals and industrial robots.

Escorts-Yamaha Motors Limited (EYML) was a joint venture between

Escorts Ltd, the flagship company of the Escorts group and the global
giant, Yamaha Motors Company Limited of Japan. Ever since signing the
first technical assistance agreement between the two companies in 1985,
Yamaha Motor Company Limited (YMC) and Escorts Ltd, had built a co-
operative relationship dedicated to the manufacture and sales of Yamaha
brand motorcycle. In November 1995, the two companies established the
joint venture company Escorts Yamaha Motors Limited, based on a 50-50
capital investment. In June 2000, that investment ratio was changed to 74
percent for YMC and 26 percent for Escorts Limited, and YMC assumed
managerial control of the company with the name being changed to
Yamaha Motors Escorts Ltd (YMEL). It then undertook numerous measures
to build the company's motorcycle manufacturing and marketing
operations. In June 2001, an agreement was reached between YMC and
Escorts LTD, under which YMC acquired the remaining 26 percent of the
stock held by Escorts. The stated aims of this move to take YMEL a cent
percent YMC subsidiary were to increase the overall speed of managerial
and business decisions, to improve product development capabilities and
production efficiency, while also strengthening the marketing organization.
Now, Yamaha Motor India is the Indian subsidiary of the Japanese
automobile giant, Yamaha. The company has a limited presence on the
Indian two-wheeler scene with models like Gladiator, Yamaha G5, Crux and
Alba. However, its models are backed by the world renowned Japanese
technology and are more fuel efficient though more expensive as compared
22
to other Indian two-wheelers. The company has developed a strong net
work of dealers and service centers that covers important towns and cities
in the country. Yamaha Motor is located at Faridabad, Haryana with an
employee strength of more than 3000 people. The company has opened
"Yamaha one"-a branded dealership at Delhi and plans to open more in the
future. Yamaha Motors Company, Japan has also set up another subsidiary-
Yamaha Motors India Sales Pvt .Ltd (YMIS) that deals with the sales and
after sales service for Yamaha brand of bikes.

Intensifying Competition Draws Customers Away .

In 2006-2007, Yamaha had a market share of 3.8 percent in

motorcycles in India. Though Yamaha enjoys brand recall it has
consistently lost market share to competitors. The company's share
shrinked further with increased competition from existing players and new
entrant Suzuki Motors. Yamaha Motors has announced to launch a new
model in both the 125 cc and 150 cc segments; and it expects to regain
the lost market share partially.with these launches in 2007-2008.

Model Launches

The company launched 125 cc Gladiator in May 2006 in the

executive segment to strengthen its position and regain the market share.
The model was priced at Rs 44,000. In May 2007, the company launched
106 cc Alba priced at Rs 38,500. The bike is positioned between the
company's existing models 'Libero G5' and 'Crux'. With this launch, the
company is expecting to increase its share during 2007-2008. Yamaha
Motorcycles India Ltd launched a 150cc motorcycle in the second half of
2008 in the premium sub-segment. The bike is likely to be priced at
Rs.80,00d-90,000 and will compete against Hero Honda's CBZ Xtreme and
Bajaj Pulsar. The company later launched a 1000 cc, bike-Rl-in select

23
metros in November 2007 and the 1700 cc bike-MTOl-in January 2008.
The price of the 1000 cc bike is around Rs 1.1 million.

Later company launched some more exclusive models like -

* Yamaha MT15

* Yamaha FZ SFI

* Yamaha FZ FI version 3.0

* Yamaha FZ FI

* Yamaha FZ 25

* Yamaha Fascino

* Yamaha YZFRI

* Yamaha MTO9

* Yamaha fazer F1

* Yamaha Ray ZR

Global Plans

Yamaha Motor India (YMI) exports models to Africa, South Africa and the
South Eastern countries. It is also exploringprospective markets in Europe
for exports.

Other companies in the Yamaha group include:

1.BösendorferKlavierfabrik GmbH, Vienna, Austria.

2.Yamaha Motor Company

3.Yamaha Fine Technologies Co., Ltd.

24
4.Yamaha Golf Cart Company

5.YamahaLivingtec Corporation

6.YamahaMetanix Corporation

7.Yamaha Music Communications Co., Ltd.

8.Yamaha Pro Audio

Diversification of the Yamaha

The Yamaha expanded itself into various businesses.The year in

which the company took step in those businesses are given below:

1897- Keyboard Instruments (reed organ, pianos in 1900)

1903 -Furniture

1914- Harmonicas

1922- Audio Equipment (crank phonograph first)

1942- Guitars 1954- Small engines and vehicles/watercraft (YA-1

motorcycle first) 1959- Sporting Goods (starting with archer

1959- Music Schools 1961- Metal alloys

1965-Band Instruments (trumpet first)

DIVISIONS:

Yamaha Motors is a highly diversified company which produces

products for a large number of industries and consumer market segments:

25
Motorcycles: Sport bikes, Star Cruiser bikes, trail bikes, road racers and
motocross racers, Commuter vehicles, including scooters,Recreational
vehicles: All-terrain vehicles and snowmobiles,Boats: Powerboats,
sailboats, utility boats and custom boats,Marine engines: Outboard motors,
electric marine motors, marine diesel engines and stern drives ,Personal
watercraft,Electric bicycles,Automobile engines ,Industrial-use unmanned
helicopters ,Golf cars,Power products: generators, multipurpose engines,
water pumps and snow throwers , Swimming pools, watersliders and pool-
related equipment ,Intelligent machinery, including compact industrial
robots,Electric wheelchairs and wheelchair electric drive units,Yamaha parts
and accessories, apparel, cycle helmets and motor oil Industrial robots and
surface mounters.

SWOT analysis of Yamaha Motors:

Strengths in the SWOT analysis of Yamaha

Wide Product range – Yamaha Motors product range includes

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

Excellent reputation – As per Forbes, Yamaha is the 69 highest regarded

companies in the world because of its excellent performance over time. It
is ranked 658 with regards to its overall sales across the world which
touches #14 billion.

26
The sound – Yamaha motorcycles are absolutely loved for the engine
ripping sound they make when someone revs up the accelerator of a bike.
In fact, It is a go to bike for motorcycle lovers.

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

Market leader in unique segments – Yamaha’s Snowmobile, water boats

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

Participation in sports – Yamaha has branded itself very well by having

regular participation in motorsports especially in motorcycle racing and car
racing.

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

Weaknesses in the SWOT analysis of Yamaha

Marketing & Advertising – Because Yamaha is a star in the BCG Matrix, it

needs to have huge expenditure where Marketing and Advertising is
concerned. However, compared to other brands like Hyundai or Hero or
others, Yamaha does not use television as effectively though it is present in
Top magazines and regularly found in the newspaper. A lot more is
expected from a brand like Yamaha in terms of Advertising.

27
Distribution – Another problem which is faced especially in developing
countries where Yamaha is present is that the distribution is not up to
mark. Even in India, the distribution is quite low and does not match with
other prominent motorcycle brands like Honda, Bajaj, Hero or others.

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

Sales is dropping – As per this graph by Statista, the sales of Yamaha is

dropping year on year and 2016 is the year when it has dropped the most.

Opportunities in the SWOT analysis of Yamaha

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

Low tier segment motorcycles – Most of Yamaha’s products are positioned

as premium whereas Yamaha should be looking at the low tier as well as
mid-tier segments. Brands like Volkswagen in cars have proved that a
single company can cater to all segments even if it does the same with
different brands. With the same concept, Yamaha can concentrate on the
low tier and mid-tier segment to have a huge boost to its dropping
sales.Distribution – Having more distribution point and service points are
required by the brand. It is a weakness which Yamaha has and covering
that weakness can mean an opportunity for the brand.

28
Expansion – Expansion in International territories and developing markets
can help the brand in boosting sales. This expansion will not be limited to
motorcycles but it can be applied to its engines and all the other products
in the arsenal of Yamaha.

Brand driver products – Like Pulsar in Bajaj or Splendor and Passion in

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

Rising Disposable income &Emerging markets – Yamaha needs to

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

Threats in the SWOT analysis of Yamaha

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

Competition – The competition in this segment is huge. There are national

players in most countries which have captured a large market share and to
counter the competition, Yamaha needs either price penetration or
excellent marketing. But at all times, the competition effects both – the
topline and the bottomline of the company.

Indirect competition – Although all families have one motorcycle, it is

observed that scooters and slowly yet steadily replacing motorcycles. At

29
the same time, many families have directly purchased cars instead of
purchasing a single motorcycle. This indirect competition rising in demand
is also a reason for the dropping sales of Yamaha and it is a threat to the
brand.

30
THE COMPANY

Bajaj Auto Limited

Type Public company

BSE: 532977
NSE: BAJAJ-AUTO
Traded as BSE SENSEX
Constituent
CNX Nifty Constituent
Industry Automotive
Founded November 29, 1945
Founder Jamnalal Bajaj
Headquarters Pune, India
Rahul Bajaj (Chairman)
Key people
Rajiv Bajaj (MD)
Motorcycles, three-
Products wheeler vehicles and
cars
₹226.8759 billion
Revenue (US$3.4 billion)
(2015–16)[1]
₹35.6254 billion
Net income (US$530 million)
(2015–16)
Number of
9,119 (March 2014)[2]
employees
Parent Bajaj Group
Website www.bajajauto.com

31
 The Bajaj Group is amongst the top 10 business houses in India. Its
footprint stretches over a wide range of industries, spanning automobiles
(two-wheelers and three-wheelers), home appliances, lighting, iron and
steel, insurance, travel and finance. The group's flagship company, Bajaj
Auto, is ranked as the world's fourth largest two- and three- wheeler
manufacturer and the Bajaj brand is well-known across several countries in
Latin America, Africa, Middle East, South and South East Asia. Founded in
1926, at the height of India's movement for independence from the British,
the group has an illustrious history. The integrity, dedication,
resourcefulness and determination to succeed which are characteristic of
the group today, are often traced back to its birth during those days of
relentless devotion to a common cause. Jamnalal Bajaj, founder of the
group, was a close confidant and disciple of Mahatma Gandhi. In fact,
Gandhiji had adopted him as his son. This close relationship and his deep
involvement in the independence movement did not leave Jamnalal Bajaj
with much time to spend on his newly launched business venture. We are
celebrating 125th Birth anniversary of Shri. Jamnalal Bajaj on 4th of
November 2014.
His son, Kamalnayan Bajaj, then 27, took over the reigns of business
in 1942. He too was close to Gandhiji and it was only after Independence in
1947, that he was able to give his full attention to the business.
Kamalnayan Bajaj not only consolidated the group, but also diversified into
various manufacturing activities. The present Chairman of the group, Rahul
Bajaj, took charge of the business in 1965. Under his leadership, the
turnover of the Bajaj Auto the flagship company has gone up from INR.72
million to INR. 120 billion, its product portfolio has expanded and the brand
has found a global market. He is one of India’s most distinguished business
leaders and internationally respected for his business acumen and
entrepreneurial spirit.

32
CHAPTER – 3
Theoretical Back Ground

33
 When making a choice, one of the simplest method that any
individual can use is to make comparison between at least two items,
known as comparative analysis. Depending on the feature that is the most
important to you – price, quality, durability , you will compare two products
and using your knowledge in order to decide upon which product to buy.
Comparative analysis is extended also to business industries, where
appraisers conduct more complex analysis, depending on the items that
are to be compared.
Briefly, by comparing two or more things you have a scope of
discovering something unknown about either one of the products which are
compared. The best example of Comparative analysis are popular websites
like Pcmag as well as Ecommerce websites which lets users compare one
product to another. In fact, we were speaking of one on one comparison.
Many websites nowadays allow users to compare as many as 5 products at
a time.
If you look closely, jobs like financial planning and insurance planning
as well as tax planning opened up because of comparative analysis. You
need to compare one insurance plan with another to decide which
insurance plan to buy, As you don’t have the time to do it, you generally
outsource this work to someone else (An insurance agent) who then
suggests you the right insurance plan as per his comparative analysis.
An even simple example would include when you receive an offer
letter for a new job. Now, you compare the benefits of the new job vs the
job you have in hand. And then you decide whether you want to stay back
with the existing company, or you want to move on to the new company.
Any such one on one comparison can be said to be comparative analysis.
However, in business, comparative analysis has a wide application and

34
does not involve only products, but also complete sets of data. This data is
generally analyzed to provide any scope of improvement in the existing
processes.
At first sight, comparative analysis seem like an easy research to
conduct. However, as is the problem with comparative studies, it raises
many questions and it can give problems depending on the method used.
When it comes to conducting this type of analysis, businesses
distinguish between comparing quantitative data vs qualitative data.
Conducting secondary research by using quantitative data for comparison
is quite widespread among businesses as obtaining the information needed
is cost efficient. It also gives the advantage that large amounts of data can
be compared.
When comparing qualitative data, analysts tend to use relatively
small and simple data sets. Although there is no requirement to have a
specific number of cases in order to obtain statistical meaning, it is ideally
to have enough cases in order to potentially exhibit all the possible
configurations.
Comparative analysis is not only used in marketing or business, it is
quite commonly used in financial accounting, legal aspects as well as
decision making. The above given examples were simple but in effect, any
two or three things which have some underlying common features, can be
compared and analyzed.

The Product &The Product Mix

A product is anything that can be offered to a market to satisfy a want or
need. Products that are marked include physical goods, services, experiences,
events, persons, places, Properties, organizations, information, and ideas.

35
Product Mix
A product mix (also called product assortment) is the set of all products
and items that a Particular seller offers for sale. Kodak’s product mix consists of
two strong product lines: Information products and image products. NEC’s
(Japan) product mix consists of Communication products and computer products.
Michelin has three product lines: tires, Maps and restaurant-rating services..
 The width of a product mix refers to how many different product lines the
company carries. Table shows a product-mix width of five lines (in fact,
P&G products many additional Line.).
 The length of a product mix refers to the total number of items in the mix.
In table it is 25. We can also talk about the average length f a line. This is
obtained by dividing the total Length by the number of lines. Or an
average product length of 5.
 The width of a product mix refers to how many variants are offered of
each product in the Line. If crest comes in three sixes and two
formulations (regular and mint). Crest has a depth of six. The average
depth of P&G product mix can be calculated by averaging the number of
Variants within the brand groups.
These four product-mix dimensions permit the company to expand its
business in four Ways. It can add new product lines, thus widening its product
mix. It can lengthen each Product line. It can add more product variants to each
product and deepen its product mix. Finally, a company can pursue more product-
line consistency.
American marketing association defines a brand as: a name, term,
symbol,, or design, or a combination of them, intended to identify the goods or

36
services of one seller or group of Sellers and to differentiate them from those of
competitors.

Thus a brand identifies the seller or maker. Under trademark law, the seller
is granted exclusive rights to the use of the local brand name is perpetuity. Brands
differ from other Assets such as patents and copyrights, which have expiration
dates.

Packaging

We define packaging as all the activities of designing and producing the

container for a Product. The container is called the package, and it might include
up to three levels of Material.

Old Spice aftershave lotion is in a bottle (primary package) that is in a

cardboard box (secondary package) that is in a corrugated box (shipping package)
containing six dozens boxes of Old SpiceWell-designed packages can create
convenience and promotional value, various factors have Contributed to the
growing use of packaging as a marketing tool:

 Self-service: An increasing number of products are sold on a sell-service

basis. In an average super market, which stocks 15,000 items, the typical
shopper passes by some 300 items per minute. Given that 53 percent of
all purchase are made on impulse, the effective package operates as a
“five-second commercial”.

 The package must perform many of the sales tasks: attract attention,
describe the product’s features, create consumer confidence, and Make a
favorable overall impression.

37
 Consumer affluence: Rising consumer affluence means consumers are
willing to pay a little more for the convenience, appearance,
dependability, and prestige of better packages.

 Company and brand image: packages contribute to instant recognition of

the company or Brand. The Campbell soup company estimates that the
average shopper sees it’s familiar Read-and-white can 76 times a year,
creating the equivalent of $26 million worth of advertising.

 Innovation opportunity: Innovative packaging can bring large benefits to

consumers and Profits to producers. Companies are incorporating unique
materials and features such as Releasable spouts and openings.

 Toothpaste pump dispensers have captured 12 percent of. The

toothpaste market because they are more convenient and less messy. The
fragrance industry is continuously developing unique bottle designs.

 Labeling: Seller must label products. The label may be a simple tag
attached to the product or an elaborately designed graphic that is pail of
then package.

 First, the label identifies the product or brand-for Instance, the name
Sunkist stamped on oranges. The label might also wade the product:
Canned peaches are grade labeled A. B. and C.

 The label might describe the product: who made it, where it was made,
when it was made, what it contains, how I is to be used, and how to use it
safely.

38
  A service is any act or performance that one party can offer to another
that is Essentially intangible and does not result in the ownership of
anything. Its production may or May not be tied to a physical product.

The Four ‘P’ CompenentsOf The Marketing Mix

Marketing Mix

Target Market

PRODUCT PRICE PROMOTIONS PLACE

Product Variety List Price Sales Promotion Channels

Quality Discount Advertising Coverage

Design Allowances Sales Force Assortment

Size Credit Terms Public Relation Location

Service Direct Marketing Inventory

Returns Transport
39
Brand Meaning

A brand is name, sign, symbol or a combination of them which is intended

to identify the goods or services of one seller from those of competitors.

Branding Decisions

Historically, most products were unbranded. Products sold packages

containing goods without any identification mark of them. Branding started put
trademarks on their products to against inferior quality.In spite of a brand
moment products have been demanded in generic unbranded from any
pharmaceutical and staple consumer goods sector.

Brand Strategy

Branding is a strategy to make individual products distinctive. branding

can add a value to a product and is therefore intrinsic aspect of product strategy.

Branding &Cost

Branding a product involves cost of packaging, labeling and legal

protection. Unbranded products are cheaper

Branding &Segmentation

Unbranded product do not cater to specific segments, where as brands can

be developed for specific segments.

Branding & Distribution

Distributors prefer to handled branded products is a represent a particular

quality and are preferred by the buyers.

40
Branding & Consumers

Shopping becomes more efficient if products are branded. Different brands

represent different quality levels.

Price

41
Setting Pricing Policy

Price is the one element of the marketing mix that produces revenue: the
other Element to adjust, product features, channels, and even promotion take
more time. Price also Communicates to the market the company’s intended value
positioning of its product of Brand.

Determining Demand

Each price will lead to a different level of demand and therefore have a
different Impact on a company’s marketing objectives. In the case of prestige
goods, the demand curve sometimes slopes upward. A perfume company raised
its price and sold more perfume rather than less! Some consumer’s take the
higher price to signify a better product. However, if the price is too high; the level
of demand may fall.

Estimating Costs

Demand sets a ceiling on the price the company can charge for its product.
Costs set the floor. The company wants to charge a price that covers its cost of
producing, distributing, and selling the product, including a fair return for its
effort and risk.

Types Of Costs & Levels Of Production

A company’s costs take two forms, fixed and variable. Fixed costs are
costs that do not vary with production or sales revenue. A company must pay
bills each month for rent, eat, interest, salaries, and so on, regardless of output.

Total costs consist of the sum of the fixed and variable costs for any given
level of Production. Average cost is the cost per unit at that level of production; it

42
is equal to total costs divided by production. Management wants to a piece that
will at least cover the total production costs at a given level of production.

Analyzing Competitors Costs, Prices, & Offers

Within the range of possible prices determined by market demand and

company costs, the firm must take the competitors’ costs, prices, and possible
price reactions into account. The firm should first consider title nearest
competitors’ price. It the firm’s offer contains positive differentiation features not
offered by the nearest competitor, their worth to the customer should be evaluated
and added to the competitors’ price.

If the competitor Offer contains some features not offered by the firm, then
worth, to the customer should be Evaluated and subtracted from the firm’s price.
Now the firm can decide whether it can charge more, the same, or less than the
competitor.

Selecting A Price Method

Given the three Cs-the customers demand schedule, the cost function, and
Competitor’s prices-the company is now ready to select a price. Figure 16.7
summarizes the three major considerations in price setting. Costs set a floor to the
price of substitutes provide an orienting point. Customer’s assessment of unique
product features establishes the Ceiling price.

Value Network Mid Marketing Channel System

A value network is a system of partnerships and alliances that a firm

creates to Source, augment, and deliver its offerings. Marketing channels are sets
of interdependent organizations involved in process Making a product or service

43
available for use or consumption. Marketing-channel decisions are among the
most critical decision facing management. The channels chosen intimately affect
all the other marketing decisions.

Channel Functions and Flows

A marketing channel performs the work of moving goods front producers

to Consumers. it overcomes the time, place, and possession gaps that separate
goods and Services from those who need or want them. Members of the
marketing channel perform a number of key functions:

 They gather information about potential and current customers,

competitors, and other actors and forces in the marketing environment.

 They develop and disseminate persuasive communications to stimulate

purchasing.

 They reach agreements on price and other terms so that transfer or

ownership or possession can be affected.

 They place orders with manufactures.

 They acquire the funds to finance inventories at different levels in the

marketing channel.

 They assume risks connected with carrying out channel work.

 They provide for the successive storage and movement of physical

products.

44
  They provide for buyers payment of their bills through banks and other
financial institutions.

Promotion

 Each promotional tool has its own unique characteristics and

costs.Advertising Because of the many forms and users of advertising, it is
difficult to make Generalizations. Yet the following qualities can be noted:

 Public presentation Advertising’s public nature confers a kind of

legitimacy on the product and also suggests a standardized offering.

 PervasivenessAdvertising permits the seller to repeat a message many

times. It also allows the buyer to receive and compare the messages of
various competitors. Large-scale Advertising says something positive
about the seller’s size, power, and success.

 Amplified expressivenessAdvertising provides opportunities for

dramatizing the Company and its products through the artful use of print,
sound, and color.

 Impersonality The audience docs not feel obligated to pay attention or

respond to Advertising. Advertising is a monologue in front of not
dialogue with audience.

Advertising can be used to build up a long-term image, for a

product (coca-cola) or trigger quick sales ( a sears ad for a weekend sale).
Advertising can efficiently reach geographically dispersed buyers. Certain
forms of advertising can require a large budget, whereas other forms do
45
 not. Just the presence of advertising might have an effect on sales:
consumers might believe that a heavily advertised brand must offer “good
value.”
1. Communication They gain attention and may lead the consumer to the
product.

2. IncentiveThey incorporate some concession, inducement or

contribution that gives value to the customer.

3. Invitation They include a distinct invitation to engage in the

transaction now.

Companies use sales-promotion tools to draw a stronger and quicker buyer

Response. Sales promotion can be used for short run efforts such as to dramatize
product offers and boost sagging sales.

Public Relations & Publicity

The appeal of public relations and publicity is based on Three distinctive

qualities:

1. High credibility News stories and features are more authentic and
credible to readers than ads.

2. Ability to catch buyers off guardPublic relations can reach prospects who
prefer to avoid salespeople and advertisements.

3. Dramatization Public relations have the potential for dramatizing a

company or Product.

46
Personal Selling

Personal selling is the most effective tool at later stages of the buying
Process, particularly in building up buyer preference, conviction, and action.
Personal selling has three distinct qualities:

1. Personal confrontationPersonal selling involves an immediate and

interactive relationship between two or more persons. Each party is able
to observe the other.

2. CultivationPersonal selling permits all kinds of relationships to spring up,

ranging From a matter-of fact selling relationship to a deep personal
friendship.

3. ResponsePersonal selling makes the buyer tee under something for

having listened to the sales talk.

Direct Marketing

The many forms of direct marketing-direct mail, telemarketing. Internet

Marketing shares four distinctive characteristics.

Direct Marketing is

1. Nonpublic The message is normally addressed to a specific person.

2. Customized The message can be prepared to appeal to the addressed
individual.
3. Up-to-date A message can be prepared very quickly.
4. Interactive The message can be changed depending on the person’s
response.
47
Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a

diverse collection of incentive tools, mostly short term, designed to stimulate
quicker or greater Purchase of particular products or services by consumers or the
trade.

Purpose of Sales Promotion

Sales-promotion tools van in their objectives. A free sample stimulates

consumer trail, whereas free management-advisory service aims at cementing a
long-term relationship With a retailer.

Sales Promotions As Brand Builders

Building board awareness is a long-term process. What a brand does today

predicts what it will do tomorrow. Sales promotions are short term and
temporary. Here are some tips on how to make a sales promotion an effective
brand-building.

 Make sure the promotion is justified: A new store opening, a company

anniversary, and other kind of celebrations are all good reasons for
running a promotion.

 They put the brand name in the forefront celebrating spring or back to
school time are not Good reasons to run a promotion; they are too
generic.Tie the promotion to a brand’s image: birth dates and
anniversaries are good.

48
  The flavor and name originated in Argentina.Look at every promotion
both or is sales job it can do and as communication tool: a Promotion is
one of brand’s many voices: it can help build brand awareness if it says
the Right things.

Place

Channels

The marketer uses distribution channels to disturb, sell or delivery the

physical products or services to the buyer or user. They include distributors,
whole sellers, retailers and agents. The marketers also uses service channels o
carry out transaction with potential buyers.

Location

Retailers are accustomed to saying that the three keys to success are
“location, location and location”. A retailer can locate their store in the central
business district, reasonable shopping center, a commutating shopping center, a
shopping strip or within a larger store.

Inventory

Inventory levels represent a major cost. Sales people would like companies
to carry enough stock to fill all customer orders immediately. However, this is not
a cost effect. Order processing cost must be compared with carrying cost. The
larger the average tock carried, the higher the inventory carrying costs.

These carrying costs include storage charges cost of capital taxes

insurance, and depreciation and obsolescence.

49
Transportation

Marketer need to be concerned with transportation decision. Transportation

choices will assert product prices, on time delivery performance band the
condition of good when they arrive, all of which affects customer satisfaction.

50
 CHAPTER – 4
Data Analysis & Interpretation

51
Table 1: Occupation of Yamaha bike users

Occupations No Of Consumers

Students 57
Private Employee 17
Self Employee 11
Others 8
Government Employee 7
Total 100

The above result shows that students are more interested towards Yamaha
bikes.

52
Table 2: Which age people are using it

Criteria for age No of bike riders

18-22 6
23-26 74
27-30 9
Above 30 years 5
Total 100

It shows that the consumers between the age group of 23-26 are mostly
using these Yamaha bikes.

53
Table 3: Customers based on income level
C level of Monthly income No of persons
…… 50
Below 18000 21
18000 to 22000 11
22000 to 27000 8
ABOVE 27000 10
Total 100

From the previous statistics we found that mostly students and people
aging from 23-26 are using Yamaha bikes more who mostly will not have
jobs because they are still studying.

54
Table 4: On what source they came to know about Yamaha

Source Percentage

Friends 37
Family 21
Media 8
Others 34
Total 100

Friends are the major source in buying decision making.

55
Table 5: Awareness about free services

Awareness about free service Percentge

No of aware people 88
No of people who are unaware 12
Total 100

Mostly people know about this but 12% is also not a small population
should focus on this.

56
Table 6: Service rating
Servicing rating Percentage
Worst 8
Bad 19
Average 18
Very good 53
Excellent 2
Total 100

Rating towards service was good

57
Table 7: Availability of spare parts
Spare parts availability Percentage
Yes 84
No 16
Total 100

In almost all the showrooms spare parts were available and the result was
almost positive towards Yamaha

58
 Table 8: Is paid and free servicing are given same importance?

Paid service and free service are Percentage

same
Yes 81
No 19
Total 100

These statistics show that there is little bit of negative impression.

59
Table 9: Satisfaction for price:

Satisfaction for price Percentage

Highly Dissatisfied 1
Dissatisfied 3
Neutral 15
Satisfied 74
Highly satisfied 7
Total 100

Customers are satisfied towards the price.

60
Table 10: Availability

Satisfaction towards availability Percentage

Highly Dissatisfied 1
Dissatisfied 6
Neutral 8
Satisfied 67
Highly satisfied 18
Total 100

The availability is not that much good should change a little bit.

61
Table 11: Mileage

Satisfaction for mileage Percentage

Highly Dissatisfied 6
Dissatisfied 14
Neutral 29
Satisfied 34
Highly satisfied 17
Total 100

The customers are not mostly satisfied with the mileage.

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Table 12: Performance

Satisfaction for performance Percentage

Highly Dissatisfied 1
Dissatisfied 4
Neutral 6
Satisfied 41
Highly satisfied 48
Total 100

The customers of Yamaha were highly satisfied in performance.

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Table 13: Satisfaction after sales:

Satisfaction for after sales service Percentage

Highly Dissatisfied 4
Dissatisfied 9
Neutral 16
Satisfied 45
Highly satisfied 26
Total 100

45% customers are satisfied with the after sale services.

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Table 14: Suggesting to others
Do you suggest Yamaha to others Percentage
Yes 85
No 15
Total 100

Most of the customers are ready to recommend the Yamaha bikes to

others.

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Table 15: Overall satisfaction
Satisfaction towards overall Percentage
performance
Highly Dissatisfied 1
Dissatisfied 3
Neutral 16
Satisfied 42
Highly satisfied 38
Total 100

By analyzing the above things the satisfaction of customers towards

Yamaha is good.

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CHAPTER – 5
5.1 Summary
5.2 Findings
5.3 Suggestions

67
 5.1 Summary

India is one of the largest manufacturers and producers of two-

wheelers in the world. India stands next to Japan and China in terms of the
number of two-wheelers produced and domestic sales respectively. This
difference was achieved due to many reasons like restrictive policy followed
by the Government of India towards the passenger car industry, growing
demand for personal transport, ineffectiveness in the public transportation
system etc. The Indian two-wheeler industry made a minute establishment
in the early 50s when Automobile Products of India (API) started
manufacturing scooters in the country.

In the last few years, the Indian two wheelers industry has been
spectacular growth the country stands next to china and Japan in terms of
production and sales respectively. Majority of Indians especially the
youngster prefer motorbikes rather than cars. Capturing a large share in
the two wheelers industry, bikes and scooters cover major segment. Bikes
are large variety of two wheelers that are available in the market, known
for the most recent technology and improved mileage Indian bikes, mopeds
stand for style and class for everyone in India.

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 5.2 FINDINGS

* The collected data shows that students are more interested towards
Yamaha bikes.

* We also found that mostly students and people aging from 23-26 are
using Yamaha bikes more who mostly will not have jobs because they are
still studying.

* Friends are the major source in buying decision making.

* 67% of respondents Rating at maximum for good service which in turn

increases the customer satisfaction level .

* In almost all showrooms of Yamaha provide spare parts as part of good

service.

* Negative impression In around 48% respondents towards mileage in

compared to BAJAJ .

* Customers are highly satisfied towards price in compared to BAJAJ .

* From this survey it is found that the satisfaction level of customers in

various categories like different age group, gender, income levels, and
factors influencing them to buy Yamaha and satisfaction level on various
factors.

* Coming to the satisfaction based on mileage the result was bad towards
Yamaha.

* The performance was good and as well as servicing is also good.

* Service is not good as almost half gave other than good responses.

* Friends are the major influencers in buying decision making process.

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 5.3 SUGGESTIONS

* Launch of new and different brands may turn the market oligopolistic but
we definitely increase the market share.

* Looks and style must not be over stressed as compared to quality and
mileage

* 360 degrees marketing approach with aggressive promotional

campaigning’s should be followed.

* Focus more on mileage bikes as the style and performance are playing
the major role.

* Advertisements should be creative ,motivated , and passionate .

* Make warranty terms flexible for customer of R15 and FZ because these
are the premium segment customers .

* Company should have organise the programmes to influence sub dealers

and dealers because they are also the part of the company .

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 5.4 Conclusions

We conclude that from the survey we have done the Yamaha bikes are
well known for their designs and performance and the satisfaction is high
towards all other factors except mileage. Youth is the target for Yamaha, if
Yamaha satisfied its customers with the mileage and free service.

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BIBLIOGRAPHY

72
 BIBLIOGRAPHY

1) Newspaper Articles referred .

2) Magazines referred

3) Books are referred to conduct proper and effective survey implementing

efficient Reserach Methodology.

* Marketing Management

By - Philip Koetler

* Statistics book

By - Timothy

4) Websites referred

* www.yamahamotors.in

* www.bajajautomotors.in

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ANNEXURE

74
 QUESTIONNAIRE

COMPARATIVE STUDY BETWEEN YAMAHA AND BAJAJ TWO WHEELERS

1. DO YOU OWN A TWO WHEELER ?

a . YES

b . NO

2. WHICH COMPANY'S BRAND DO YOU OWN?

a . YAMAHA

b . BAJAJ

c . HERO HONDA

d . OTHERS

3. WHAT IS THE REASON THAT ATTRACTED YOU TO BUY THE TWO

WHEELER ?

a . MILEAGE

b . PRICE

c . MODLE

d . OTHER
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4 .WITH RESPECT TO MILEAGE WHICH BIKE DO YOU PREFER TO BUY ?

a . FAZER -25

b .YZSR15 (2.0)

c . FASCION

d . FZsF1

5 . WITH RESPECT TO AESTHETICSwHICH BIKE DO YOU PREFER ?

a . FAZER - 25

b . YZsR15 (2.0)

c . FASCION

D . FZsF1

6 . RANK THE FOLLOWING PARAMETERS ON A 5-POINT SCALE FOR THE

SELECTION OF TWO WHEELERS VECHILE ?

a . BRAND IMAGE

b .FUEL EFFICIENT

c . AESTHETIC

d . RESALE VALUE

7 .DO YOU HAVE COMPLETE KNOWLEDGE ABOUT TWO WHEELERS ?

a . YES

b . NO

c . CAN'T SAY
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8 .DOES ADVERTISEMENT INFLUENCES YOUR DECISION CHOOSING A
TWO WHEELER ?

a . YES

b . NO

c . CAN'T S

9 .WhICH COMPANY OFFERES A WIDE VARITEY OF PRODUCTS WITH

DIFFERENT MODELS AESTHETICES ?

a . YAMAHA

b . BAJAJ

c . HERO HONDA

D . OTHERES

10 . WHICH COMPANY OFFERES ATTRACTIVE SCHEMES AND SALES

PROMOTION ?
a . YAMAHA

b . BAJAJ
c . HERO HONDA
d . T.V.S

11 .WITh RESPECT TO MILEAGE WHICH BIKE DO YOU PREFER TO TAKE ?

a . FARE - 25
b . FT - F1
c . FASHION

d . RAYER

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12 . HOW WIll YOU RATE THE BODY TYPE , LOOK AND DESIGN OF BAJAJ
TWO WHEELERS ?

a . EXCELLENT

b . GOOD

c . AVERAGE

D . POOR

13 . ARE YOU SATISFIED WITH THE PERFORMANCE AND PICK UP OF

BAJAJ TWO WHEELERS ?

a. YES

b . NO

c. CAN'T SAY

14 . HOW DO YOU FEEL ABOUT THE BREAKING SYSTEM , SAFELY

FEARTURES AND STORAGE SPACE IF BAJAJ TWO WHEELERS ?

a . EXCELLENT

b . GOOD

c . AVERAGE

d . POOR

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