A

SUMMER TRAINING PROJECT REPORT

ON

A Study of Customer Preference for Specified

Two-Wheeler of India Yamaha Motors Pvt. Ltd.

SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE

DEGREE OF BACHELOR OF BUSINESS

ADMINISTRATION 2009-10

UNDER THE GUIDANCE OF

Dr. RAVINDERJIT
SUBMITTED BY:
KARTIKAY CHANDRA

Roll no. 1091471707 Batch No. BBA Vth SEM ‘B’Section

MAHARAJA AGRASEN INSTITUTE OF

MANAGEMENT STUDIES
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086
 ACKNOWLEDGEMENT

A project is never the work of an individual. It is moreover a combination of ideas,

suggestions, review, contribution and work involving many folks. It cannot be
completed without guidelines. My sincere regards to our Director Sir Dr. N. K.
Kakkar and Project guide Dr. Ravinderjit for her invaluable guidance and
encouragement through out this project.

Last but not the least my sincere thanks to my Sr. Sales Executive and Team members
for providing their help and advice whenever it was need.

Kartikay Chandra
Enr. No. 1091471707
 EXECUTIVE SUMMARY

Two wheeler industries in India, in immediate past, were mainly on a restriction from
permits, quota licenses and power lobby influence. Very high potential demand, very
high conversion rate from bicycle to motor bikes & scooters. To survive in this
environment company must make profits, exploit market conditions but they could
not expand globally in 90’s. Globalization brought in hi-tech, fuel efficient, better
ecstatic immediate availability of models but with high price tag & flooded the two
wheeler market. Most of the companies, Vijay, lambretta, falcon, vanished from the
scene. Yamaha scooter survived and established leadership in changing environment.

The two wheeler segment of the industry had been bucking the normal trends
exhibited by the automobile industry for the past few years. But appears that the time
has come for this segment to align itself with the overall industry growth. The growth
in two wheeler sales has been quite steady over past eight years and right now there is
no reason to expect an upturn. The previous sales growth rate appears to have been
capped. There in fact could be a special for a fall in growth in penetration level after a
decade of steady growth. More specifically one can argue that the higher base has
been partly achieved through generous financing packages & discounts scheme. All
major two wheeler players include Yamaha, Bajaj auto, TVS, LML, Kinetic motors &
Hero Honda motors are battling for the motorcycle segments. The dramatic structure
shifts in industry from scooters to motorcycles has been going on for the last 5 years
& is expected to have been completed.

The fall out was that during the last fiscal the geared scooters segment shrank by 37%
also as duties come down on imports more & more foreign motorcycles will enter the
market. Already Chinese motorcycles have been made their presence felt in cities like
Lucknow.

The Indian 2 wheeler industry (Motorcycles) features among most dynamic sector in
India facing challenges & continuous change. It is not also encouraging domestic
manufactures but also attracting potential & exciting overseas parties as well. Today’s
India 2 wheeler industries (motorcycle) is one of the most talked about industries in
the world.

With various car manufacturer like hundai, Maruti, Tata, etc in market, tough
competition among these players in increasing & all these players are using, various
attractive marketing strategies to attract more & more customer & in turn to increase
their sales.

In present scenario there are different model provided by different players in the
market to beat to each other in different segments of bikes. In the market is trying to
launch a perfect bike for consumer according their needs. Hyundai, Maruti, Tata, etc
is major competitors for Maruti..

Here I endeavored to find out the flaws at dealership level, the reason for not
achieving targeted sales satisfaction level of existing R-15 & Fazer 150 cc. Customers
& tried to do comparative analysis with its major competitor Pulsar, CBZ Xtreme &
Passion+ in executive segmentation of bikes.

The share of Motorcycle grew by over 8% points between 2003-2004 and 2004-2005
from 66.2% to 74.3%. Simply put, motorcycle is the name of game.

So, it was difficult for two-wheeler industry to sustain position in market, so to face
this new challenge, in 1997-98, Yamaha had shrug off his image of being a
manufacturer of traditional metal bodies geared scoters by systematically introducing
motorcycle that could combine the companies historical selling points of ruggedness,
fuel economy and price competitiveness with style, performance and comfort. Due to
his good brand name and better quality product Yamaha Motors is enabling to get 46
in entry level of bike and 42%in premium segment but Yamaha Motors is still facing
problem in executive segment of bikes, they have only 7% in this segment (last
quarter result of 2005). Motors is facing tough competition from market leader.
 TABLE OF CONTENTS

Student declaration………………………………………………………..i

Certificate from Company/Organization …………………………………ii

Acknowledgement…………………………………………………………iii

Executive Summary………………………………………………………..iv

Chapter Scheme……………………………………………………………v

Page no.
CHAPTER -2
INTRODUCTION

1.1 Purpose of the study………………………………………………..

1.2 Research Objectives of the study…………………………………..

1.3 Research Methodology of the study……………………………….

1.3.1 Research Design……………………………….

1.3.1.1 Population…………………………………………

1.3.1.2 Sample size………………………………………..

1.3.1.3 Sampling technique……………………………………..

1.3.2 Method of data collection……………………………

1.3.2.1 Instrument for data collection…………………………

CHAPTER -2
About the Organization / Company Profile……………………………………………

CHAPTER -3
Findings and Analysis……………………………….
…………………………………………………….

CHAPTER -4
Suggestions………………………….
…………………………………………………….
CHAPTER -5
Conclusion and Limitation……….…………………………………………………….

Bibliography

Annexure

Miscellaneous

Evaluation Attendance Sheet

Schedule for Project Completion.

INTRODUCTION
 Of the Japanese trio of bike manufacturers, it is a no-brainer that Yamaha is
the most popular. Yamaha has managed to size up the Indian two-wheeler market like
no other overseas manufacturer and has gone a step further and applied that insight
into the products that its own subsidiary has produced in the last four years.

But while Kawasaki has been satisfied with its joint venture with Bajaj Auto,
the other Japanese two-wheeler manufacturer, Yamaha, has quietly gained
confidence, knowledge and experience about the Indian market during the last decade.
After its mutual separation with the Escorts group, with which it had entered the
market, and despite maintaining a fairly low profile for long since the heyday of the
Yamaha RX 100, this Japanese manufacturer has managed to learn constantly, albeit
discreetly, from its Indian experience. And, this is increasingly evident in each new
bike that sports this marquee.
Yamaha’s strategy for the Indian market was on the right alleyway, but
somewhere down the lane, the company missed the turn towards four-stroke engine
technology, as was the case with the other domestic two-wheeler manufacturers also.
By the time they all caught up with Hero Honda, the latter had already stolen a march
in the market. But after teething troubles with finding the right four-stroke two-
wheelers for India, Yamaha was quick to latch on to the qualities that are best
appreciated by the discerning Indian two-wheeler buyer.
There are four different segment of motorcycle segmented by market expert, which
are

I. ENTRY LEVEL: In entry level of bike, pricing & ruggedness plus fuel
efficiency are prime factors driving sales. The model price of this segment of
bike is between Rs 27,000 to 37,000.

II. EXECUTIVE LEVEL: The executive level of bike is defined as one which
need to incorporate the best of both words- Mileage from the entry level of
bikes among with style & a modified of performance from the premium
segment. The model price of this segment of bike is between Rs. 38,000 to
45,000.
 III. PREMIUM LEVEL: In this segment the power and looks of the bike are given
more importance. These bikes can be said as younger sisters of sports bikes,
less concerned about the mileage, and providing a sporty, macho look. They
are priced anything between 50,000 to 70,000.

IV. CRU1SER LEVEL: As the name itself suggests, these bikes are made to
cruise all over the way. Pretty comfortable, powerful and technically sound.
These bikes are priced between 50,000 to 90,000.

The last three bikes from the Yamaha stable — the Crux, the Enticer and the
Libero — are all standing, rather running, testimony to Yamaha’s growing
understanding of the Indian two-wheeler market.
What is better though the sales numbers may suggest otherwise — is that the
three bikes reflect qualities that Yamaha wants to be at the core of its bikes: Quality
materials, high performance and optimum handling.
These qualities have now percolated to Yamaha’s latest, and most promising
offering — the Fazer.

Pedigree and design

The Fazer is, in many ways, truly Yamaha, as the company’s new tagline aptly
says. Focused wholly on peak performance and classy ride and handling, this Yamaha
has more in its genes that is common with the legendary RX100 than its predecessors.
Interestingly, this Indian 125cc Fazer shares its name with much bigger, muscle bikes
such as the FZ1 and the FZ6 that have attained cult status in the European and
American markets.
Yamaha has also opted to make bold moves with out-of-the- ordinary design
and styling for the Fazer, a trend that started with the launch of the slightly quaint
looking Libero. After the staid, uninspiring design of the previous bikes such as the
YBX and Cruz, the Libero and now the Fazer almost seem to ooze shock value.
The Fazer’s design at the front is clearly dominated by the twin headlamp and
the stubby, deeply angled fairing. The “Martian eyed” twin headlamp, clear-lens type
construction gives the Fazer a somewhat difficult to like and yet strangely beautiful,
new age countenance. It is another matter that it also improves the bike’s lighting
efficiency. The short, half fairing in tinted plastic also houses the twin-pod instrument
panel that displays the speedometer and the engine rpm meter. But a fuel gauge is not
part of the set up, a surprisingly obvious miss.
The fuel tank is chunky and has deep knee recesses that, unlike a few
competing bikes, are positioned perfectly to suit most rider types. Additionally, the
fuel tank features two plastic air scoops (like in the TVS Hero F2) fitted to either side
that make the bike look fuller and are also designed to keep the bike’s design lines
flow uninterrupted. The seat and handlebar positioning is perfect. The seat is broad,
offers adequate support even for a heavy rider and steps up to accommodate the
pillion. The quality of switches and knobs are on a par with bikes in its class.
At the rear, the tail-lamp cluster is one unit. It also incorporates the turn
indicators and has been elegantly designed to gel with the overall design theme. Right
above the rear lights, the aluminum die-cast grab rail has been elongated to perform
the function of a tail-lamp protector, sari guard and also has pegs on the lower side to
allow some luggage to be tethered. The paint job is good and the bike is a looker even
without the use of decals. While the silencer and chrome heat shield combination with
the cruiser-style chopped edge looks is compatible with the overall design, it also
gives the bike a soft, low noise, and yet sporty exhaust note.

Chassis and engine

The Fazer comes with a light-weight diamond type tubular frame and
rectangular swing arm. The chassis offers excellent balance and rigidity to the bike
and though there is a bit of hesitancy while puffing the Fazer through a tight turn,
there are no signs of any body flex.
It gets even better thanks to the extra-long 1,300mm wheelbase of the Fazer
and the slightly higher ground clearance of 160mm. Foot-pegs for the pillion rider are
also positioned right and are mounted on neatly finished, light weight, aluminium die-
cast sub-frames on either side.
The Fazer’s engine is a 123.7cc, four-stroke, air-cooled SOHC, 2-valve single
cylinder mill that generates a peak power of
108 bhp at 7,500rpm, similar to the Bajaj Windl25.
The engine, which is not a stressed member, has been packed smartly into the
area below the fuel tank. The Fazer’s mill is also a free-revving delightful engine that
delivers a maximum torque of 1 .O6kgf-m at 6,500rpm. The low torque curve also
ensures that the engine does not knock in the fourth gear even at speeds of 30 kmph.
Unlike the other bikes in its class, the Fazer features a Mikuni BS carburetor,
which has been combined with a fuel saving feature that the company calls Yamaha
Throttle Position Sensor (YTPS). Through 3D digital mapping, the BS carburetor
works in tandem with the YTPS to provide precise adjustment of the ignition advance
based on the degree of throttle opening, which in turn depends on the rider’s demand
for power. Essentially, this ensures that fuel supply to the engine is optimized and
wastage is reduced. Despite this feature, fuel efficiency is not the Fazer’s forte.
Mileage in the long run in city conditions will be only about 45-50 kmpl.
Ride quality and suspension
Riding comfort and ease of use, despite the first down, rests up configuration
of the gearbox (pretty much the hallmark of Yamaha’s bikes) are clearly above par in
the Fazer. This Yamaha bike’s front and rear suspensions have been given extra long
cushion stroke and while the front fork adopts 35mm diameter inner tubes that
provide a wheel stroke of
120mm, the rear suspension adopts a five-step adjustable, light weight unit
with a built in large diameter rod and cylinder combo and an optimized lever ratio.
The Fazer meets the proposed India 2005 emission norms thanks also to
innovative air intake mechanism and catalytic converter. Yamaha has also managed to
reduce engine noise and vibration by suppressing these at source rather than employ
such vibration dampers as rubber mounts and bar-end weights.
The Fazer’s silent type cam chain, thicker fins on the engine cylinder head and
plastic resin gears for the oil sump also help reduce noise. Atop our test bike,
vibration was amazingly low even at speeds of over 85 kmph on top gear and engine
noise was just about beginning to jar. The 150mm drum at the front and the 130mm
drum at the rear offer adequate braking power.
Priced at about Rs44, 000 (ex-showroom), the Fazer is a convincing
proposition for even the 100cc bike shopper. Arresting design, great performance and
excellent build quality should attract buyers. Though disc brakes are missing, even as
an option and the bike only offer a four-speed gearbox, these should not be big
deterrents for aspiring buyers. Yamaha is looking at initial sales of 6000-8000 units of
the Fazer, to go up to 20,000-25,000 units over a period of time. The company is
targeting break-even by 2005, a scale up from its earlier announcement of a 2006
break-even. The company intends to hit 3 lakh-plus units this calendar and reach a 20
per cent share of the Indian market in the next few years.
This study analyses and forecast the sales based on the trends in the industry
and the perception of distributors and customers.

SEGMENTATION IN MOTOR CYCLE MARKET

MotoData Yamaha Hero Honda Bajaj Pulsar

Fazer 153 cc CBZ Xtreme 180/200
Engine
Type Air-cooled, 4-stroke, Air-cooled, 4- Air-cooled, 4-stroke,
SOHC, 2-valve, single stroke, 2-valve, 2-valve, single
cylinder single cylinder cylinder
Max Power 14Ps/7500rpm 12.8bhp 12bhp
Max Torque 14Nm/6000rpm NA Na
Transmission Return type 5 speed 1 down 4 speed All down/1 down 4up
footshift 5 speed footshift
Starting System Electric start Kick Electric
Ignition C.D.I. with 3 CDI Electronic with auto-
dimension digital advance
Chassis
Type Diamond Tubular double Tubular double
cradle cradle
Suspension Telescopic/Monocross Telescopic Telescopic
Brakes 240 mm Hydraulic 230 mm disc 240 mm disc with
single disc/drum with two piston two piston caliper,
caliper, 130 mm 130 mm drum (R )
drum brakes
Tyres 2.75*18 MRF 2.75*18 MRF 2.75*18 MRF
Nylogrip Zapper- FS, Nylogrip Nylogrip Zapper- FS,
100/80-17 MRF Zapper- FS, 100/90-17 MRF
Nylogrip-Y 100/70-17 MRF Nylogrip-Y
Nylogrip-Y
Dimensions
Length 1975 mm 2100 mm 1960 mm
Width 770 mm 760 mm 790/740 mm
Height 1045 mm NA 1065 mm
Wheelbase 1335 mm 1205 mm 1265 mm
Dry Weight 130 kg 130 kg 132/137 kg
Fuel Tank 12ltr 12ltr 18ltr
Performance
Speed through the 40/70/82/92/110(160) NA 38/68/81/93/108(180)
Gears
0-60kph 5.15secs 5.60secs 5.60/4.94secs
 60-0kph 25.4m/20.5m NA 23.6m/21.5m
Top Speed 120kph 108kph 108/118kph
Average Fuel 48kpl 48kpl 48.4/42.7kpl
Consumption
Price
Ex- showroom Rs. 64,500 Rs. 54,862 Rs. 56,500(180)
Delhi Rs. 61,500(200)
Corporate Philosophy of Yamaha

Creating kando with products and services that exceed your expectations

For society, for the world …

Yamaha works to realize
our corporate mission of creating Kando

Yamaha Motor is a company that has worked ever since its founding to build products
defined by the concepts of “high-quality and high-performance” and “light weight and
compactness” as we have continued to develop new technologies in the areas of small
engine technology and FRP processing technology as well as control and component
technologies.
It can also be said that our corporate history has taken a path where “people” are the
fundamental element and our product creation and other corporate activities have
always been aimed at touching people’s hearts. Our goal has always been to provide
products that empower each and every customer and make their lives more fulfilling
by offering greater speed, greater mobility and greater potential.
Said in another way, our aim is to bring people greater joy, happiness and create
Kando* in their lives.
As a company that makes the world its field and offers products for the land, the
water, the snowfields and the sky, Yamaha Motor strives to be a company that “offers
new excitement and a more fulfilling life for people all over the world” and to use our
ingenuity and passion to realize peoples’ dreams and always be the ones they look to
for “the next Kando.”
What is Kando?

Kando is a Japanese word for the simultaneous feeling of deep satisfaction and
intense excitement that people experience when they encounter something of
exceptional value.

Yamaha Believes In

SEIRI: It means “Arrangement”, identify and dispose of non-required

articles.
SEITON: It means “Orderliness”, arrange the required items at their allotted
places.
SEISO: It means “Cleaning”, keep one’s work area free of dust and dirt.

SEIKETSU: It means “Cleanliness”, keep work area pleasant by regularly

maintaining first 3S.
SHITSUKE: It means “Discipline”, follow operation and working standard
meticulously.

MANAGEMENT PROFILE

The Vice-president, GMs, AGMS, Head all manufacturing units Sr. manager&
managers. A team of seasoned professionals ably manages Bajaj Auto limited. These
are:

Title Name

Chairman and Director Tsuneji Togami

President and Representative

Takashi Kajikawa
Director

Representative Director Tetsuo Uchiyama

Representative Director Toru Watabiki

Director (Outside) Shuji Ito

Director Toyoo Ohtsubo

Director Takaaki Kimura

Director Masahito Suzuki

 Director (Outside) Masayoshi Furuhata

Director (Outside) Eizo Kobayashi

Director (Outside) Yuko Kawamoto

Standing Corporate Auditor Haruhiko Wakuda

Standing Corporate Auditor Tsutomu Mabuchi

Corporate Auditor (Outside) Naomoto Ohta

Corporate Auditor (Outside) Norihiko Shimizu

Corporate Auditor (Outside) Tetsuo Kawawa

As of March 25, 2009

SWOT ANALYSIS
STRENGTHS:

1. Good brand name of Yamaha Motors.

2. The only two wheeler company manufacturing racing and normal bikes.

3. Better model of bike for different segment at different price range.

4. Yamaha has improved its market share in India.

5. An emerging MNC, exported all over the world.

6. Improved supply management, so that Yamaha bikes are available everywhere

in country.

7. Low maintenance cost of motorcycle.

8. Being an Indian company, it can understand domestic customer demand.

WEAKNESSES

1. Less resale value of Bajaj bike.

2. No proper follows up of company rule by the dealers.

3. There is no customer care center of Yamaha Motors, where customer can

complain their problems.

4. Lack of prompt after sales service.

OPPORTUNITY

1. People are looking for speed and mileage, so they are shifting from Scooter to
bike.

2. Increasing no. of professionals and students is also an opportunity for Two-

wheeler industry.
3. Higher disposable urban incomes for progressively younger people and their
desire to ride in style.

4. The commuters are looking for their own vehicle and in this case motorcycle
is best substitute for middle class income People.

5. Better infrastructure can help to fulfill the increasing demand of market.

THREATS

1. Good brands like Hero Honda and Bajaj are major threat for Yamaha Motors
because they are offering good models and features at a very less price.

2. The no. of competitors is increased because with the break up of Hero Motors
and Honda, Honda is also entered in the market with proper expertise.

3. Fast changing consumer buying behavior is also a threat for two wheelers.
Research
Objectives
 RESEARCH OBJECTIVES

OBJECTIVES OF THE PROJECT

The objective of the project was to find out competitive structure of Yamaha Motors,
as to what induced the customer’s mind when they purchase the motorcycle. To
achieve this objective following path was followed.

1. To study the customer’s awareness about various features of Fazer, a two-

wheeler of India Yamaha Motors Pvt. Ltd.

2. To study the customer’s awareness about comparative features of specified

two-wheeler of Hero Honda, Bajaj and India Yamaha Motors Pvt. Ltd.

3. To study the customers preference for Fazer in comparison the specified two-
wheeler of other companies.

4. Customer profiles of the owner of the competitive brand.

5. Consideration set of the customer at the time of purchase.

6. Reasons for not purchasing brand considered especially Yamaha.

7. The attributes that customer looked for while purchasing the bike.

8. Problems in the current bike of Yamaha brand.

9. Awareness of brands offered by Yamaha Motors.

10. SWOT analysis of Yamaha.

RESEARCH DESIGN
The project is an exploratory research study with the aim of getting an insight of the
Indian bikes market. The method of research, was to go to the showrooms of all the
major bikes manufacturers like Yamaha, Bajaj, Suzuki, TVS, Hero Honda, Honda,
etc. as a decoy customer, get the details of the bikes from the salesmen, collect the
brochures and rate the showrooms depending on various factors like interiors,
location, sales force, ambience, services etc.
The showrooms were selected in the Delhi and NCR region. Around 35 showrooms
were visited and data was collected. The Yamaha’s performance in the market was
compared with its competitors on various factors like product, price, place, and
promotion. Yamaha showrooms were compared with the competitors on the grounds
of locations, interiors, decors, services, sales force and ambience.
The website of Yamaha is also compared with its competitor’s website on the basis of
the parameters such as informative, updated, features, linking, and database.
The best locations were suggested for putting the hoardings to promote the brand
Yamaha .The site selection was done on the basis of footfalls and the crowd in the
area.

Sample Size

Center of study: Delhi and NCR region

Target group : Dealer
Sample size : 35
Target group : Customers
Sample size : 80 peoples
 Research Methodology

PLACE OF RESEARCH

The place of my research was basically all the showrooms of two-wheelers specially
motorcycles of all brands and the areas where the movement of traffic was high & a
variety of customer could be contacted. For this purpose the best suited areas were
east, west & south. Here the traffic movement was high & a good amount of useful
data could be collected.

SOURCES OF INFORMA TION

Major source of information for this project were the owner of the motorcycles
models being considered in New Delhi & NCR Region. It was difficult gathering the
information from the respondent as most of them were in hurry & felt it was wastage
of time & it would not benefit them in any way. But all the required efforts were made
to collect the information.

Some respondent gave very good response & even gave additional information
helpful in the study.

TOOLS AND TECHNIQUES

Tools and techniques that were used in this project are

Measuring scale :
Nominal scale

Graphical scale

Interval scale

Market research tools :

Survey

Questionnaire
Statistical tools
Bar diagram

Pie chart

Methodology for Phase I:

 Information collected from all possible primary and secondary sources including
resources, two-wheeler’s showroom, Newspaper databases, magazine articles and
published studies as well as the Internet.
 Research also included a primary exploratory study conducted in Yamaha by
using open-ended questions.

Methodology for Phase II:

 The research will be done using Quantitative as well as Qualitative methods. The
primary data will be collected to check the effectiveness of the existing claims of
the company. The research instrument used for this purpose is an open cum
closed-ended questionnaire.

To prepare this in-depth study of the Yamaha ‘Fazer’ market research surveys
were conducted and the results analyzed .The results from the following surveys
were analyzed for this report:

Survey size and Questionnaire summary

Consumer: A sample of 35 motorbikes users was taken up for personal survey of

Consumer. Detailed analysis of the results of the consumer survey is contained in
chapter 3 of this report.
The Questionnaire contains personal questions (name, age, gender, education,
occupation and income). Questions related to Needs/benefits sought by market,
product usage, purchasing characteristics and attitude of a consumer of motor bikes
are also included.
A few questions related to ‘Fazer’ are included in the end. These relate to the
advertising/marketing aspects of the launch of Fazer’.
RESULTS AND ANALYSIS

RESEARCH CONTEXT

The study is divided into two sections to facilitate systematic organization and
analysis:
Section 1: Marketing of the new product in the competitive market
 Definition of 4 Ps of marketing and its need in an organization.
 The present scenario: Existing position and its claims.

Section 2: Fazer: its effectiveness in the Indian Auto industry Analysis &
Implications
 What does the dealer and customers feel do they think Fazer has an important role
to play in auto industry.
 The level of awareness of the launch of Fazer.
 Study of effectiveness of Fazer on the basis of the parameters like motivation,
regularity, timely delivery, interest generation, periodicity and updating, ease in
understanding, feedback mechanism and company involvement etc.

The data collected by the Market Survey was tabulated in excel worksheet and
Statistical analysis was done for the data manually. Analysis by visual inspection of
data was adopted where ever suitable. Mean Average, Mode and Percentages are
other measures used to analyze most of the data.
 Data collection and analysis

Data collection
Primary data: Internet, magazines and newspapers.
Secondary data: data collected from the respondents using unstructured questionnaires

Data analysis

Que. Did you own a two-wheeler prior to current vehicle?

Users already having two-wheeler

Yes No

15%

85%

Findings: 90% people already have two-wheeler before buying the Fazor.
Que. Which brand(s) did you consider while purchasing the current vehicle?

Brand 1

Considered the brand1 while

purchasing
Fazor CBZ Xtreme Pulsar
R15 Karizma Hero Honda Hunk

13%
9% 33%

18%
7%
20%

Findings: People mostly considered the executive segmentations of bikes while

purchasing.

Brand 2
 Reason for not purchasing the brand 2

Costly Avg Look

30% 27%

43%

Findings: Mileage is most considered.

Que. If current vehicle were not present what would you have bought?

Substitute of current vehicle

Pulsar CBZ Xtreme

Splendor NXZG Passion Plus
Karizma Hero Honda Hunk
10%
7%
39%
13%

17% 14%
Findings: After Pulsar, CBZ Xtreme is most preferred bike.
Brand 2

Considered the brand 2 while purchasing

Pulsar CBZ Xtreme

Splendor NXG Passion Plus
Karizma Hero Honda Hunk
10%
9% 31%

17%

12% 21%

Findings: People mostly considered the executive segmentations of bikes while

purchasing.
Que. What are the reasons for not purchasing the brands mentioned above?
Brand 1
 Reasons for not purchasing the brand 1

Costly Look Avg Poor Performane Alredy owned

6%
13%
34%

21%

26%

Findings: Peoples prefer Pulsar due to look and the cost.

Que. How many distance you normally drive per day?

Distance drive per day (In Km)

40-50 50-60 60-70 70-80 80-90 90-100

7% 3%
11% 27%

13%

39%

Findings: Generally people cover a distance of 50 to 70 Km/day.

Que. What is the speed at which you normally drive per day?

Avg speed(In kmph)

40-45 45-50 50-55 55-60 60-65

5% 5%
15%
33%

42%
Findings: The avg. people at which people use to drive is 50-60km/hr.

Que. What was your expected mileage from current vehicle?

Expected mileage (in kmpl)

60-65 65-70 70-75 75-80

5% 20%
15%

60%
Findings: Everybody wants a mileage ranging between 70 to 80 kmpl.
Que. What mileage does your vehicle give?

Actual Mileage (in kmpl)

50-55 55-60 60-65 65-70

3% 10%

30%
57%

Findings: Currently available bikes are providing a mileage of 70-80 kmpl in normal
conditions.
Que. What is the price of Fazer 153?
 Price of Fazer 153 (In Rs)
40,000-45,000 45,000-50,000 50,000-55,000
55,000-60,000 60,000-65,000 65,000-70,000

24% 13%
8%

15%
20%
20%
Findings: People thought that the Fazer153 is priced something around Rs 60,000-
70,000.
Que. Have you seen any press add of Fazer?
 Awareness about Faze

Yes No

9%

91%

Findings: People are mostly aware of Fazer.

Que. What is the mileage of Fazer 153?

Mileage of Fazer
50-55 55-60 60-65 65-70

18% 10%

30%

42%
Findings: People think that Fazer’s mileage is lie between 60-65 kmpl.

Que. How many gears does it have?

Gears in Fazer153
4 Gears 5 Gears

43%

57%

Findings: People are aware of the number of gears present in Fazer.

Que. How do you like the looks?

Looks of Fazer
Excellent Good Average Poor

8%
20%
49%

23%
Findings: Bike is considered to be as with excellent looks.

Que. Why did you not buy Fazer?

 Reason for not buying Fazer
Not aware Brand name of Honda
Looks Resale value
Low avg & high price
20% 13%

10%
34%
23%
Findings: Peoples are more fascinated by the brand name of Honda.

Que. Occupation of the users?

 Occupation of Users

90 85
80
70
60
No. of 50
users 40 35
30
20 15 15 15
10 5
0
trader/sh.own. mid/sr. ex.
Occupation

Findings: Mostly jr. executives are opting for executive segment of bike.
Que. Martial status

Martial Status

Married Unmarried

37%

63%

Findings: Unmarried guys are a bit higher than the married ones, who own an
executive segment bike.
Que. Monthly house holds income

Income of Users

80 74
70
60
51
50
No. of users 40 38
30 25
20
12
10
0
0-5000 7501- 15001-
10000 20000
Incomes

Findings: Mostly people having an executive segment bike lies between 7501-10000
income groups.
Que. Mode of purchase
 Mode of Purchase
Cash Finance

38%

62%

Findings: People use to buy bike on finance payments.

Que. Age of users

Age of users

20-25 25-30 30-35 45-50

10% 3%
25%

62%

Findings: Avg of bikes are ranging mostly between 25-30 years age group.
Que. Education of users
 Education of users

Hr. Sec. Bachelor Masters Dip.

8% 20%
10%

62%

Findings: Mostly guys holding an executive segment bikes are bachelors.

Que. What was his reason for buying current vehicle?

Reason for buying current

vehicle
Mileage Look Resale Value Price

11%
30%
24%

35%
Findings: People are usually concerned about looks and mileage of bike.

Que. Any change recommended in Fazer?

Change recommended in Fazer

Increase Mileage Reduce Cost
Modified Design
16%

49%

35%

Findings: People want the company to increase the mileage and looks of the Fazer.
Que. How many variants are available in Fazer?

No. of variants

Not known One Two Three Four

8%
11%
6%

62% 13%
Findings: Most of the guys are aware of the number of variants provided with the
Fazer.
Que. Why did you not buy Fazer?

Reason behind not buying Fazer

Mileage Cost Not Interested

8%
38%

54%

Findings: As the bike is costly, they are not buying it.

Que. Will you buy it without fairing but with disc brake at this price?

Without fairing but with disc brake

Yes No

15%

85%
Findings: Peoples don’t want any removal from the existing bike.
Que. At this price would you have it without disc brake & without fairing?

Without fairing & without disc brakes

Yes No

7%

93%
Findings: People don’t want any removal from existing bike.

Que. If we offered assured value on your existing CBZ Xtreme, would you buy
Fazer?
 Interested change current bike

Yes No

9%

91%
Findings: If people are given true value of their existing bike they will happily
exchange it to Fazer.
Que. How much assured value should be given to you?

Assured value should be offered

36000+ 37000+ 38000+ 39000+

40000+ 41000+

11% 3% 8%

19%

32%

27%

Findings: As most of the bikers are new they want around Rs.39000-41000.
Que. Any other suggestions to make you buy Fazer?

Customer's suggestions

Mileage Price Look

17%
31%

52%

Findings: People want Fazer to reduce cost and give more mileage.
About the
Company
 About the YAMAHA Company

Founded in 1955, Yamaha Motor Co. Ltd. has energetically

diversified by maximizing its superiority in small engines and
fiber-reinforced plastic (FRP) technologies. From motorcycles,
boats and outboard motors to industrial robots and unmanned
helicopters, Yamaha Motor products play a leading role in utility
and leisure pursuits on land, in the sky, and at sea, all around the
world. Today, Yamaha Motor is a worldwide corporation
producing quality products in 60 factories in 35 countries. Firmly
committed to a local approach, Yamaha Motor contributes to the
well-being of the communities where it operates, while constantly
expanding the scope of its business.

The YAMAHA brand has its roots in the name of our founder,
Torakusu Yamaha. Familiar with western science and technology
from his youth, Yamaha initially found employment repairing
medical equipment. This led to a request to repair a organ, a
project that resulted in the birth of the Yamaha struggled against
great odds to establish Yamaha Organ Works. Entrepreneurial
spirit, farsightedness and determination to overcome difficulties
fueled his passion to succeed. This same spirit formed the
foundation of the Yamaha brand, and is a vital legacy of Yamaha
Corporation today.
The three tuning forks of the Yamaha logo mark represent the cooperative
relationship that links the three pillars of our business: - technology, production and
 sales. They also evoke the robust vitality that has forged a reputation for sound and
music the world over, a territory indicated by the enclosing circle. The mark also
symbolizes the three essential musical elements: - melody, harmony and rhythm.
The Yamaha logo mark, combining the Yamaha logo and the tuning fork
mark, was adopted in 1967, coinciding with the introduction of the standardized
tuning fork mark. Used in various forms over the years, the current Yamaha logo
mark was designated in 1998.

Industry Analysis
Growth to be lower in 2007-08

 Domestic passenger bikes sales rose by 22 per cent, while domestic utility
vehicle (UV) sales increased by 20 per cent in the first 9 months of 2007—08.
Passenger bikes and UVs are expected to grow at 17-18 per cent and 16-17 per
cent respectively in 2008—09. The strong growth in sales was due to strong
growth in family incomes, higher aspiration levels of customers, price
reductions and new models/variants launched by companies, lower EMIs due
to stable interest rates and higher tenures. The cut in EMIs also spurred tour
operators to replace old vehicles in their fleet.
 The growth of passenger bikes is likely to be lower at 10—11 percent in 2007
—08, due to increase in prices of bikes towing to rise in input price), Euro III
norms, and stable interest rates. The mid—size segment and compact segment
will continue to see growth, while the mini segment may see a fall in sales.
Similarly, the growth in utility vehicles is likely to be lower, at 4—5 per cent,
mainly due to expectations of stable consumer finance interest rates, which
drove growth in the previous fiscal.
 The operating margins of bikes and UV manufacturers have improved
marginally, owing to strong demand growth and higher capacity utilization.
Going forward, the operating margins are expected to increase slightly in
2008-09, on the back of higher realizations, due to change in product mix in
favour of compact and mid—size segment bikes. Net profits have grown
substantially in the first 9 months of 2007—08, on account of higher volumes
and lower interest cost, and are expected to improve further in 2008—09.
Budget Impact
Cost savings for bikes & UV manufacturers to improve margins
A. The cut in the import duty on used bikes and utility vehicles from 105 per cent
to 100 per cent will not have any impact on the industry.
B. The reduction in the peak customs duty on components from 20 per cent to 15
per cent will lower the prices of imported components. This reduction will
bring down the prices of premium segment bikes, which have higher import
content. In addition, the cut in the customs duty on aluminum from 15 per cent
to 10 per cent will marginally lower the cost of production of bikes and utility
vehicles. The above measures will have a positive impact on bikes and utility
vehicle manufacturers, as these benefits are likely to be retained by auto
original equipment manufacturers (OEMs), thereby increasing their margins.
C. The increase in the excise duty on steel from 12 per cent to 16 per cent and cut
in the excise duty on tyres from 24 per cent to 16 per cent will not affect
OEM5, as the excise on inputs are modvatable against the excise paid by
companies on their final product.
D. The extension of 150 per cent deduction up to March 31, 2007 in terms of in—
house R&D expenditure will benefit automobile QEMs.
E. The reduction in personal tax rates will increase household disposable income,
which is a positive for car demand.

Major Players
Company Name Impact Impact Factors
Hero Honda Motors Ltd. Positive B,D,E
Bajaj Motors Ltd. Positive B,D,E
Yamaha India Motors Ltd. Positive B,D,E
Suzuki Samurai Motors Positive B,D,E
Ltd.
TVS Motors Ltd. Positive B,D,E

 Yamaha Motor Co., Ltd. was founded with Genichi Kawakami as the first
President
 Nippon Gakki Hamana Factory established in Hamakita-cho (present Hamamatsu
city), Hamana-gun, Shizuoka Pref., and production of our first product, the 125cc
Yamaha motorcycle "YA-1" begins

 YA-1 wins 125cc class of the 3rd Mount Fuji Ascent Race

 YA-1 captures first three places at the 1st All Japan Auto bike Endurance Road
Race (Asama Highlands Race) in the Ultra light (125cc) class

 YA-1 wins 1st to 8th places (125cc class) and YC-1 wins 1st to 5th places (250cc
class) at 4th Mount Fuji Ascent Race

 Yamaha Motor Hamamatsu Research Institute founded and operations shifted

from the Nippon Gakki Hamamatsu Research Institute

 YA Racer wins 1st, 2nd and 5th places (125cc class) and YD Racer wins 1st to
3rd places (Light class) at 2nd All Japan Auto bike Endurance Road Race (Asama
Highlands Race)

 Took 6th place in first attempt at 8th Catalina Grand Prix in the U.S. (Yamaha's
international racing debut)

 Yamaha De Mexico S.A. de C.V. established with investment by Nippon Gakki

and local Mexican investors

 Yamaha "YA-2" becomes first motorcycle to win Japan's "Good Design Award"

 The first full-fledged sports motorcycle by a Japanese maker, "YDS1" released,

actor Yujiro Ishihara used as commercial endorser

 Kitagawa Motor Co., Ltd. joins Yamaha Motor group

 Yamaha Technological Research Institute established at Hamakita-cho (present
Hamamatsu city), Hamana-gun, Shizuoka Pref., for overall R&D for Yamaha
Motor group

 Completion of Tenryu test course in Hamakita-cho (present Hamamatsu city),

Hamana-gun, Shizuoka Pref

 Yamaha International Corporation (YIC) founded in U.S. as subsidiary of Nippon

Gakki

 Showa Works Ltd. joins Yamaha Motor group

 First Yamaha outboard motor "P-7" released

 First Yamaha FRP boat "CAT-21" and "RUN-13" released and press introduction
held at Lake Ashino

 New listing on First Section of Tokyo Stock Exchange (Capitalized at 800 million
yen, 1.6 million shares)

 First appearance in road race World GP at Round 3, the France GP

 Took 6th place in World GP 250cc class at round 4, the Isle of Man TT Race in
Britain

 CAT-21 wins 1st Pacific 1,000 km Motorboat Marathon

 Won Novice 250 and 350cc classes of 1st All Japan Road Race Championship

 Motorcycle development operations transferred from Yamaha Technological

Research Institute to YMC headquarters

 Nationwide Yamaha Kai (authorized dealership organization) launched

 First meeting of overseas dealers held

 Pearl Yamaha founded in India as tie-up with local funding and starts production
and sales of mopeds

 Won first 250cc class race in road race World GP (Belgium GP)

 Won first 250cc class victory at the Daytona Grand Prix (U.S.)

 Captures first manufacturer and rider titles in 250cc class of the road race World
GP

 Siam Yamaha Co., Ltd founded in Thailand

 Won 1st Japan Motocross GP in 251cc and above class

 Recognize by Japan's Ministry of Trade and Industry (MITI) for contribution to

exports (recognized again in '66 and'67)

 Tie-up with Toyota Motor Co. to develop and manufacture Toyota 2000GT,
model displayed at the Tokyo Motor Show in Oct.

 First Yamaha FRP fishing boat "3rd Fuji Maru" built

 Full export operations transferred from Nippon Gakki to YMC

 Yamaha-built Toyota 2000GT sets world records in 3 speed trials categories and
international records in 13 categories

 Technical assistance agreement signed with Kong Hsue Sheh to produce

motorcycles in Taiwan
 Liaison office opened in Thailand

 Yamaha Motor Europe N.V. (YMENV) founded in the Netherlands

 First Yamaha snowmobile "SL350" exhibited at Chicago Trade Show

 First trail model "DT-1" released

 First Yamaha FRP utility boat models "W-16" and "W-18" released

 Sanshin Industries joins Yamaha Motor group

 Product improvement activities program "IPC" start celebrated

 First Yamaha multipurpose engine model "MT100" released

 Yamaha Test Course opens in Fukuroi, Shizuoka Pref.

 First Yamaha motorcycle mounting a 4-stroke engine "XS1" released

 Yamaha Motor does Brasil Ltda. (YMDB) founded in Brazil

 Won snowmobile manufacturer title at Eagle River World Championship

competition (U.S.)

 Haraban Motor Co. founded in Indonesia in tie-up with Haraban Co. and local
production of motorcycles begun in Indonesia

 Headquarters moved to present location in Iwata City

 First win in Motocross World GP at Round 10, Swedish GP (250cc class)

 First win in Motocross WGP Round 11, Luxembourg GP (500cc class)

 Yamaha Motor Canada Limited (YMCA) founded in Canada

 Signed joint venture agreement with Brunswick Co. (U.S.) and Brunswick invests
in Sanshin Industries

 Won first manufacturer and rider titles in 250cc class of the Motocross World GP

 Yamaha wins 1st All Japan Trial Championship

 First Yamaha portable generator model "ET1250" released

 First Yamaha racing kart model "RC100" released

 Hisao Koike appointed second YMC president

 Won manufacturer titles in all classes of road race World GP, 125cc, 250cc,
350cc, and 500cc

 PT. Yamaha Indonesia Motor Manufacturing (YIMM) founded in Indonesia as

motorcycle parts maker

 Manufacture and sales of FRP pools begun

 Membership type comprehensive recreation facility "Tsumagoi" opened in

Kakegawa City, Shizuoka Pref.
 "C7 Campaign" launched with aim of reducing cost by 7%

 Sportsland SUGO opened in Shibata-gun, Miyagi Pref.

 OMDO (Overseas Market Development Operations) liaison office opened in

Nigeria

 First Yamaha golf car model "YG292" released

 Wing of Yamaha wins 1st Single-handed Transpacific Yacht Race

 First Yamaha industrial robot model, an "arc welding robot" released

 First Yamaha marine diesel "MD35" released

 YMC-related divisions of Yamaha International Corporation separated to found

Yamaha Motor Corporation, U.S.A.

 Yamaha "DT100E" and "XS650E" are top models in the industry to clear the U.S.
1978 emissions regulation

 The "soft bike" model "Passol" released

 Captures manufacturer and rider titles for the first time in 500cc class of the
Motocross World GP

 R&D Minnesota opened in U.S. as Yamaha Motor's first overseas R&D center

 First Yamaha land car model "G1-AD" released

 First Yamaha snow-thrower model "YT665" released

 Industrial robot "CAME" developed an introduced on YMC production lines

 Yamaha's first All Terrain Vehicle (ATV) model "YT125" released in the USA

 XT500 wins 1st Paris-Dakar Rally

 Energy saving 4-stroke engine system Yamaha Induction Control System (YICS)
developed

 Sino-Japanese friendship "Guangzhou Yamaha Exhibition" held (China)

 Computerized production management system Pan Yamaha Production

Management Control (PYMAC) implemented

 New YMUS headquarters completed in Cypress, Calif. (USA)

 Sociedad Espanola de Motocicletas.S.A. (SEMSA) founded in Barcelona, Spain

 Yamaha Guangzhou Service Center and Beijing Service Center opened in China

 Technical Center opened at YMC headquarters

 Motorcycle production and marketing tie-up with Motobecane (France)

 Business tie-up with Sweden's Ohlins in the racing and technical know-how fields

 Hideo Eguchi appointed third YMC president

 Start of companywide "New Yamaha" Program

 Yamaha Motor da Amazonia Ltda. (YMDA) founded in Brazil

 Technical assistance agreement made for 80cc motorcycle production with China
North Industries Group

 Yamaha Motor Australia Pty. Ltd. (YMA) founded

 Technical assistance agreement made for motorcycle production with Escorts Ltd.
in India
 TPM Activities launched to improve product quality and production efficiency

 Signed contract to develop, produce and supply automobile engines to Ford Motor
(U.S.)

 Technical assistance contract signed with Italy's Motori Minarelli

 Local production of 125cc motorcycles begins in China with technological

assistance to Zhongguo Hangkong Jishu Jinchuguo Gongsi

 Signed an integration of technology and trade contract with China National

Automotive Industry Import & Export Corporation for the sales of CBU vehicles

 "Y.E.S.S." club started for Yamaha motorcycle fans in Japan

 Yamaha Motor Manufacturing Corporation of America (YMMC) founded in U.S.

 Yamaha Motor Taiwan Co., Ltd (YMT) founded in Taiwan

 France's MBK becomes part of the Yamaha Motor group

 Technical assistance contract for motorcycle technology signed with Italy's

Belgarda S.p.A and Motori Minarelli S.p.A. founded

 Opening ceremony held for YMC liaison office in Beijing

 First Yamaha personal watercraft (PWC) "MJ-500T" released

 Yamaha automobile racing engine "OX66" wins first race in Round 2, the All
Japan Suzuka Big 2+4 Race of the All Japan F2 Championship Series

 First Yamaha-made surface mounter "21 Series" released

 First Yamaha gas heat pump (GHP) model "YGC401W" released

 Cosworth Yamaha OX77 wins first All Japan F3000 Championship race

 Limited production of 20 units of Yamaha's first commercial-use unmanned

helicopter "R-50" released
 

 Companywide "Tomorrow Yamaha" program started

 Hamaoka test course opened in Omaezaki City, Shizuoka Pref.

 Cosworth Yamaha OX77 wins series title in All Japan F3000 Championship

 YMC wins "PM Excellent Company Award"

 Machine mounting the Yamaha "OX88" racing engine competes in F1 for the first
time

 "YESS NICE RIDE" donation campaign for training guide dogs for the blind
launched

 Corporate Mission; We Create Kando - Touching People's Hearts and long term
management vision announced

 Yamaha Motor Portugal S.A. (YMP) founded

 Yamaha constructed 1992 America's Cup challenge boat "Nippon"

 Yamaha snowmobile wins Harricana International Snowmobile Rally in Canada

 Established Environment Affairs Division

 Yamaha Motor France S.A. (YMF) founded

 Yamaha Motor de Mexico, S.A. de C.V. (YMMEX) founded

 Chongqing-Jianshe Yamaha Motorcycle Co., Ltd. (CJYM) founded in China

 Yamaha Motor Austria GmbH (YMAG) founded

 Yamaha Motor Hungaria Kft. (YMH) founded

 Established CCS (Customer Community Satisfaction) Committee to begin

"Yamaha CCS Movement"

 Japan Marine Sports Promotion Foundation established

 European distribution center begins operation in Holland

 Announcement of the Action Plan for Environmental Conservation

 Liaison office opened in Guangzhou, China

 Zhuzhou Nanfan Yamaha Motor Co., Ltd. (NYM) founded in China

 Sichuan Huachuan Yamaha Motor Parts Manufacturing Co., Ltd. (SHY) founded
in China

 Regionally limited release of the electro-hybrid bicycle "PAS"

 Takehiko Hasegawa appointed as fourth YMC president

 "Yamaha" victorious in W60 class of the 6th Whitbread Round the World Yacht
Race

 Technical tie-up for technology, manufacture and selling of surface mounters with
Philips EMT of the Netherlands

 Yamaha Motor Taiwan Trading Co., Ltd. (YMTT) founded in Taiwan

 Chongqing Pingshan TK Carburetor Co., Ltd. (PTK) founded in China

 Jiangsu Linhai Yamaha Motor Co., Ltd. (LYM) founded in China

 YMC received 1995 TPM Special Award

 "ACE Plant" waste incineration and recycling facility constructed and operation
started at YMC headquarters.

 Wheelchair electric power unit "JW-I" released, bringing Yamaha into the health
and welfare industry

 Urban commuter motorcycle "Majesty YP250" released

 Relief materials and relief brigade sent to help in the disaster relief and recovery
efforts following the Hanshin Awaji Earthquake

 Yamaha Motor Thailand founded

 Escorts Yamaha Motor Ltd. (EYML) established in India at conclusion of first

joint venture agreement between Escorts and YMC

 Yamaha Motor Components (Europe) s.r.l. (YMCE) founded in Italy

 "Environment 2000 Plan" announced

 Yamaha is first domestic manufacturer to be awarded international ISO9002

certification for motorcycles, snowmobiles, ATVs

 PT. Yamaha Motor Parts Manufacturing Indonesia (YPMI) founded

 Yamaha Motor Argentina S.A. (YMARG) founded

 Y's Gear Co., Ltd. founded

 PT. Yamaha Motor Nuansa Indonesia (YMNI) founded

 Liaison office opened in Shanghai, China

 Domestic sales companies united to form Yamaha Motor Marketing Japan

 Yamaha Communication Plaza established at YMC headquarters

 Yamaha Motor Vietnam Co., Ltd. (YMVN) founded

 Yamaha Motor Asia Pvt. Ltd. (YMAP) founded in Singapore

 Yamaha Motor del Peru S.A. (YMDP) founded

 Nine Yamaha Motor factory and office sites win ISO14001 certification

 2010 Environmental Action Plan "Eco Cite YAMAHA" announced

 IM Division reorganized as in-house company "IM Company"

 Corporate ties with Toyota Motor Co. strengthened

 Yamaha Motor Asian Center Co., Ltd. (YMAC) founded in Thailand

 Toru Hasegawa appointed as fifth YMC president

 Yamaha builds temporary pool "Suimu 21" for the main competition pool of the
9th World Swimming Championships in Fukuoka, Japan

 Yamaha succeeds in the high-concentration mass culturing of Chaetoceros

 Announcement of new three-year plan "NEXT 50"

 New 4-region headquarters system initiated with newly established headquarters

for Asia and Japan added to the existing European and N. American headquarters

 Limited regional release of the electric commuter motorcycle "Passol"

 Manufacture of 50cc scooters for the Japanese market shifted to YMT in Taiwan

 Marine Engine Division reorganized as in-house company "ME Company"

 Yamaha Motor Distribution Singapore Pte. Ltd. (YDS) founded

 Yamaha Motor Co., Ltd., Moscow Representative Office opened in Russia

 Start of "YAMAHA CCS 21 Campaign"

 Won MotoGP rider championship title

 Takashi Kajikawa appointed as sixth YMC president

 New medium-term management plan "NEXT 50 - Phase II" announced

 Yamaha captures MotoGP triple crown by winning the rider, team and
manufacturer titles

 Sales company OOO Yamaha Motor CIS (YMCIS) founded in Russia

 Life Science Laboratory opened in Fukuroi, Shizuoka, as research and

development center for YMC's bio-technology business
 Motorcycle manufacturing factory Yamaha Motor Manufacturing West Java
(YMMWJ) founded in Indonesia

 Mass production of Astaxanthin as a supplement begun at factory in Fukuroi,

Shizuoka

 Global Parts Center established in Fukuroi city, Japan and full operations begun

 Compliance Promotion Committee established

 Following the recommendation by the Compliance Promotion Committee,

governance structure is strengthened

 "CF Magnesium Diecasting Technology" introduced, and used for the first time in
commercial production of a motorcycle rear frame

 ASTIVO released as Yamaha's first health food product

 Commencement of manufacturing and sales of motorcycles at Yamaha Motor

Philippines, Inc (YMPH) in the Philippines

 Number of motorcycles produced in Indonesia plants reaches a cumulative total of

10 million units

 Long-term vision "Frontier 2020" established along with new medium-term

management plan as its Phase One

 Motorcycle manufacturing and marketing joint venture Yamaha Motor Cambodia

Co., Ltd. (YMKH) established in Cambodia

 Motorcycle manufacturing joint venture India Yamaha Motor Private Limited

(IYM) established in India with Mitsui & Co., Ltd.

 Global Training Center established in Indonesia

 Yamaha Riding Academy training facility for promoting motorcycle riding safety
opened in Thailand
 Yamaha wins MotoGP triple crown of manufacturer, team and rider
championships
Findings
 90% people already have two-wheeler before buying the Fazor.
 People mostly considered the executive segmentations of bikes while
purchasing.
 Everybody wants a mileage ranging between 70 to 80 kmpl.
 Currently available bikes are providing a mileage of 70-80 kmpl in normal
conditions.
 People thought that the Fazer153 is priced something around Rs 60,000-
70,000.
 People think that Fazer’s mileage is lie between 60-65 kmpl.
 Mostly people having an executive segment bike lies between 7501-10000
income groups.
 People use to buy bike on finance payments.
 Mostly guys holding an executive segment bikes are bachelors.
 People are usually concerned about looks and mileage of bike.
 People want that the Yamaha company to increase the mileage and looks of
the Fazer.
 If people are given true value of their existing bike they will happily exchange
it to Fazer.
 People want Fazer to reduce cost and give more mileage.
SUGGESTIONS
 Yamaha needs to sign up some more famous personality as their Brand
Ambassador like Hero Honda and TVS has signed up. This really affects the
sales.

 In order to attract more and more customers company should provide a bike
at lower costs.

 No doubt the bike provided by the company is superior to that of the rivals
but to attract more customers. They should be given better of the sales
services and some lucrative offer, free service camp half yearly.

 An exchange offer for both Fazer and FZ-16 should be started so that people
can exchange their bikes and can be grabbed.

 Company should continuously keep on providing new versions to enable

people to have a choice and variety of products in these way customers will
be attracted and motivated.
CONCLUSION
AND
LIMITATION
 Yamaha is looking at initial sales of 6000-8000 units of the Fazer, to go up to
20,000-25,000 units over a period of time. The company is targeting break-even by
2005, a scale up from its earlier announcement of a 2006 break-even. The company
intends to hit 3 lakh-plus units this calendar and reach a 20 percent share of the Indian
market in the next few years. To achieve this goal following recommendations should
be incorporated in accordance with the problems

 The promotion and advertisement of Yamaha is highly limited so, Yamaha

needs to sign up some famous personality as their Brand Ambassador. Hero
Honda has Saurav Ganguly and Hritik Roshan, while TVS has signed up Sachin
Tendulakar. This really affects the sales.
Electronic Media must be more used than Print Media Advertisement on
television hits more than those in news papers and magazines.
Internet popup should be there to advertise their products
Big sports events in India should be more sponsored .Various road shows could
be held. Advertisement budget should be increased. Aggressive marketing
strategy should be adopted.
 The pricing of the products is not only accepted by customers but as well as the
dealers feel in this way that the prices of various models should be reduced
 .Fazer being a new product should have some acceptable price; its price is high
according to various dealers contacted.
The finance scheme should come from Yamaha as other motorbike company’s
are coming up with. The dealers feel company should start its own financing
scheme or company. Hero Honda has scheme of mobile phone with every
Honda bike, TVS has offer of Gold coin with its bikes and Bajaj has color
Television with its bikes but Yamaha is no where with the schemes. This is not
in accordance with the competition.
 The product “Faze?’ is criticized for its shape, Spiderman and many others are
the names which are used to criticize Fazer. The twin Lights as thought to be
advantageous move bounced back.
Fazer is launched as a heavy bike so it should be technically more powerful; that
is, its engine should have been at least 150cc or more.
According to JM Motors, Noida they had complaints from customer saying that
the advertisement on television had some other bike and when they saw it was
totally different. Yamaha should come up with variants of Fazer over varying
price segments so as to attract customer from different income groups.
 The dealers are located in obsolete areas.
The dealer should be located in frequently visited market place. Improvements
in all other departments are required to improve the Brand value.
 BIBLIOGRAPHY

Reference books

Koontz O Donnel, Essential of Management Concept, 5th Edition, Tata

McGraw Hill Publishing Company Ltd.

Philip Kotlar, Marketing Management, 4th Edition, Taxmann Publishing (P)

Ltd.

Ramaswamy Namakumari, Marketing Management, Galgotia Publishing

Company

C R Kothari, Research Methodology

Websites

YamahaIndiaMotors.co.in

Yamaha/motorcycle/india/passion html

Magazines
 Auto India

Auto Expo

Business India

Business Today

Newspapers

The Times of India

Hindustan Times

Economic Times

ANNEXURES

Customer’s Questionnaire

Name:

Address:

Tel Off: Resi: Mobile

Purchase Date: Dealership:

Location:____________

Kilometers covered on existing vehicle:____________________

Did you own a two wheeler prior to current vehicle?

 Yes________ No_________

Which brand(s) did you consider while purchasing the current vehicle?

BRAND 1 BRAND 2

What are reasons for not purchasing the brands mentioned above?

BRAND 1 BRAND 2

Reason 1

Reason 2

1. If current vehicle were not present what would you have brought?

_____________________Why? __________________________________

2. What were his reasons for buying current vehicle?

3. How many distance do you normally drive per day: Km/day

4. What is the speed at which you drive the vehicle? _______________

5. What was your expected mileage from current vehicle: _________Km/Its

6. What mileage does your vehicle give: ____________________ Km/Its

7. What is the price of Fazer? ________________

8. Have you seen any press add of Fazer?

Yes___________ No___________

9. Any change recommended in Fazer?

10. What is the mileage of Fazer? ___________________

11. What is the power of Fazer? ____________________

12. How many gears does it have? _____________________

13. How do you like the looks?

A) Excellent B) Good C) Average D) Poor

Please tell us something about yourself

Occupation Education Monthly household

income

Trader Secondary <5000

Businessmen High Secondary Rs. 5001-7500

Profession Bachelors Rs. 7501-10000

Junior Executive Masters Rs. 10001-15000

Middle executive Diploma > 15000

Student Martial Status Made of Purchase

Married Cash

Age Yrs. Unmarried Finance

14. How many variants are available in Fazer?

15. Why did you not buy Fazer?

16. Will you buy it without faring but with disc brake at this price?

Yes_____________ No_____________

17. At this price would you like to have it without disk brake & without fairing?

Yes______________ No_____________

18. If we offer assured value D your existing CBZ Xtreme, would you buy Fazer?

19. How much assured value should be given to you?

20. Any other suggestion to make you buy Fazer?

Filled by__________________ Date:_____________