YAMAHA PIANOSDBIT/FT/1A/23

FOM CA2 Presentation

Lim Zui Young

Tan Jie Sheng

Celestine Woo

Chan Wai Teng

Liao Jing

Zhang Xun

CONTENTS

• COMPANY

• TARGET SEGMENT

• PRODUCT

• PRICING

• PLACING

• PROMOTIONS

COMPANY OVERVIEW

• One of largest manufacturer of musical instruments

– US$ 4667 Billion in Revenue (March ‟07)

• Main Business in Upright and Grand Piano

• Company operates worldwide

– Japan, US, Europe, Australia, Asia

• Mission: To take the perfection of their pianos to ever-higher level of perfection

TARGET MARKET SEGMENT

Demographic Behavioral

Income

Age

Benefits Sought

SEGMENTATION VARIABLES:DEMOGRAPHIC

• Income: (S$130,000 to S$200,000)

– per household annually

• Annual disposable income of:

– S$22,250 to S$89,000

85900.7 94499.4104929

116633129256

142564

0

20000

40000

60000

80000

100000

120000

140000

160000

US$15,000 US$25,000 US$35,000 US$45,000 US$55,000 US$65,000

Income

0.0%

5.0%

10.0%

15.0%

20.0%

20 25 30 35 40 45 50 55 60 65

Age Distribution

SEGMENTATION VARIABLES:DEMOGRAPHIC

• Age: 35 to 54– Based on those who purchased pianos.

• 64% of Highest Population Income

(20% of S‟pore Population)

• fall in this age range Age

BENEFITS SOUGHT

• Professional Music Development

– Grand Piano for higher grade studies and

Professional Stage Performances

– Industry Experts and teachers require

its performance characteristics

• Ultimate Musical Enjoyment

Benefits Sought

SEGMENT SIZE AND GROWTH

• Disposable income of total population of

Singapore increased on average 6.3% yearly

for last decade.

• Steady demand in need of pianos

– 80% increase in number of Music Performing

Arts societies in ten years since 1997.

SEGMENT STRUCTURAL ATTRACTIVENESS

Poor Durability and Quality (Priced $9000 - $29000)

Mass Market, Budget Conscious, Mainly Made in Korea and China

Strict Quality Craftsmanship and Exceptional Sound (Priced $25000 - $89000)

Mid-range Market, Value Conscious, Made in Japan

Traditional Craftsmanship in Limited Production (Priced $60000 - $250000)

Luxury Market, Made in Germany, France, U.S.A.

PRODUCT

• Yamaha‟s Product Strategy (3 Levels):

• Core Product

• Actual Product

• Augmented Product

YAMAHA C2 DEMO

Core Product:

• Brand

– World-

renowned

• Touch:

– Light and snappy

action

• Sound

YAMAHAC2

Actual Product:

• Design & Aesthetics

• Quality:

– Japan Quality

Manufacturing

• Craftsmanship:

– Touch: “Ivorite”:

Better Grip of Keys

• Durability & Reliability

YAMAHAC2

Augmented Product:

• Delivery & Installation

• After-Sales Service

– Tuning

– Servicing

YAMAHAC2

SURVEY FINDINGS

Grand piano

27%

Upright piano

33%

Others

40%

Do you have a Yamaha piano?

NEEDS OF YAMAHA PIANO

73%

27%

Are you satisfied with Yamaha’s After-

Sales Service

Yes

No

SURVEY FINDINGS

Design and

build quality

Expressivenes

sTouch Sound Quality Brand

Series1 4.13 3.53 4.2 3.73 4.21 4.4

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

1-p

oo

r to

5-e

xce

llen

t

Rate Yamaha Pianos

EVALUATION

• Survey Profile(15)

• Quality Investment -A good choice for pianists 84.2%

• Touch -good feel to keys-84%

• Design and Build Quality 82.6%

• Sound –bright and brittle-74.6%

– Most complain that piano is too loud

• Expressiveness -soft-loud, musical intentions, etc.) 70.6%

RECOMMENDATION:YAMAHA GC2Silent Feature:

– Use Hammer Shanks

– Headphones for sound

– Normal Playing of Piano

– Digital recording

• Tone of Concert Grand

• Home-Friendly

SURVEY RESULT

YES

73%

NO

14%

NO

OPINION

13%

Would you like to purhcase a piano with silent feature

YES

NO

NO OPINION

RECOMMENDATION NEW GC2-SILENT

PRICING

MARKETING OBJECTIVE

• Market share leadership

$130,000 $120,000

COMPETITORS

Yamaha C2

$30,000

Kawai RX2

$31,000

Young Chang PG-185

$29,000

PRODUCT LINE PRICING

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

C1 C2 C3 C5

25,000

30,000

37,700

44,000

Model

Model Tone

collector

Superb

craftsman

ship

Duplex

scaling

Extendable

bass string

Overall

sound

volume

Lid-prop Price

C1

161 cm

No No No Shortest Soft Maplewood $25,000

C2

173 cm

Yes No No Short Average Maplewood $30,000

C3

186 cm

Yes Yes Yes Average Loud Maplewood $37,700

C5

200 cm

Yes Yes Yes Long Loudest Boxwood $44,000

DIFFERENCES

PROMOTIONAL PRICING

Product

Bundle

EVALUATION

Pricing

TacticsEvaluation

Product Line

Pricing

73% of the correspondents are happy about the different

features of the pianos and they have a better idea to buy

the piano that suits their different demands/needs.

Promotional

Pricing

All of the correspondents say that the offerings at the

sales are very attractive and 66% they have bought items

during the sales.

PSYCHOLOGICAL PRICING

PRODUCT BUNDLE PRICING

• Yamaha‟s care-free package

PLACING

YAMAHA OUTLETS

DISTRIBUTION CHANNEL

• Exclusive

luxury (25,000-44,000)

limited number (2 out of 7 have grand pianos)

DISTRIBUTION CHANNEL

• Control over Yamaha Music Asia

– Price

– Promotion

• Participating Banks

– Credit (free interest for 24 month)

• Services

Yamaha Factory

Hamamatsu Japan

Yamaha Headquarters

Yamaha Music Asia (S)

Consumers

EVALUATION

PROMOTION

PROMOTIONAL MIX TOOLS

Evaluation

Direct Marketing

Public Relations

Sales Promotion

Recommendation

DIRECT MARKETING

Direct Marketing

Catalog Marketing

Direct-Mail Marketing

CATALOG MARKETING

DIRECT-MAIL MARKETING

PUBLIC RELATIONS

Public Relations

Speech Written Materials

Special Events

Speech Special Events

Special Events

SALES PROMOTION

• Consumer Promotion Tools

–Freebies Package

–E.g. Price Packs

Premiums

SALES PROMOTION

•Business Promotion Tools

-Trade Fairs For Business

-E.g. Piano fair

-Competitions

Trade fair at Suntec Convention Centre Competition

SALES PROMOTION

• Increases overall sales

• Effective

• Essential

– Customers buy during

promotional period

Net sales increases

by 80%

From Yamaha Sales

Co-coordinator

EVALUATION

• Internet

–Email advertisements

• Targeted customers

80%

20%

Email advertisements

Received Did not receive

EVALUATION

– Company's own website

• Product information

• Online support

Product information

RECOMMENDATION(ADS)

• Published in The Straits Times, „Life‟

Section

• Published weekly for a period of two

months

RECOMMENDATION(HOW?)

• Straits Times has an

estimated readership of 1.23

million each day

• Promotes public relations too

RECOMMENDATION(WHY?)

THANK YOU