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INTRODUCTION

Yamaha has shifted its focus from the lower end segments to the premium

segment of bikes. It aims to provide its customers the full range of its

engineering marvels that make Yamaha the company that it is. Yamaha has a

very strong focus on the technical department, the result of which can be

seen with Yamaha comfortably leading the constructors championship in

the Super bikes racing with Valentino Rossi and Colin Edwards as their

riders.

Yamaha has aimed to become the No.1 in customer satisfaction and is

looking forward to providing the customer with an experience with its

products.

The target market of India Yamaha Motors is the young and enthusiastic 18-

25 yr. olds who are willing to try taking the not so much treaded path of

buying the sports bike rather than a utility two wheeler. These young

guns are very conscious of the style quotient and look forward to their ride

being a personality statement.

With the increasing dispensable income in India and growing middle and

upper middle class segment Yamaha is sure to find many prospective

customers. With news of India becoming the breeding ground for

millionaires Yamaha has certainly identified an opportunity and has grabbed

it hands down.

B.E.H.M.I.M. College, Siruguppa BBM 2nd Sem 1 | P a g e


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RESEARCH DESIGN

RESEARCH METHODOLOGY

The report has been prepared on the basis of information collected from

different sources. In order to achieve the objective of the project proper

research method was applied.. After giving through brain storming session,

objectives were selected and the set on the base of these objectives, A

questionnaire was designed major emphasis of which was gathering new ideas

or insight so as to determine and bind out solution to the problems.

DATA COLLECTION SOURCE

Research included gathering both primary and secondary data. :

PRIMARY DATA - Primary Data was very crucial to collect so as to know

various past & present consumer views about bikes and to calculate the market

share of this brand in regards to other brands. Fresh primary data was collected

by taking direct feed back from customer which involved face to face

interview with the customer as well as through telephonic interview with thecustomer , all the FZ customer who visited the dealership showroom for the

service of their bikes were questioned in order to find out the customer

satisfaction level.

SECONDARY DATA- are those which has been collected by some one else

and which already have been passed through statistical process. Secondary

data has been taken from internet, newspaper, magazines and companies web

sites.



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RESEARCH APPROACH

SURVEY METHOD: The research approach used was survey method which

is a widely used method for data collection and best suited for descriptive type

of research survey includes research instrument like questionnaire which can

be structured and unstructured. Target population is well identified and various

methods like personal interviews and telephone interviews are employed.

SAMPLE DESIGN

For the sales promotion study a census methodology was adopted and all the

dealerships and brokers of that region were visited.

For the customer satisfaction study a sample of 100 persons was chosen

from the Yamahas dealership in Bellary. The sample was judgmental and

methodology was non probability sampling

Size of Sample 50

Sampling technique Judgmental (Non Probabilistic

Sampling)

Location from which samples were

taken

Bellary

SCOPE OF THE STUDY

This study is aimed at providing India Yamaha Motors with an insight into

the success of FZ & FZS as well as the customers response and awareness

towards the brand, products and services of Yamaha.The data has been analyzed and presented in a simple and precise way on the

basis of which pertinent recommendations have been made to the company

to better the services, policies and strategies of the company in India.

OBJECTIVES



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To know the customers perception regarding launch of new bikes FZ

& FZs by Yamaha.

To determine the customers satisfaction regarding bikes and after

sales service.

To determine the factors influencing the choice of customers

regarding bikes

To collect the valuable suggestions from the customers.

LIMITATIONS OF THE STUDY

This research is geographically restricted to Bellary only. Hence

the result cannot be extrapolated to other places.

The study is restricted only to the organized sector of two wheeler

industry

The seriousness of the respondents and their ability to justify their

answers may also be a limitation.

The sample size is small due to the specified reasons.

Findings are based on sample survey.

All interview questions are undisguised or direct. Hence there is a

scope for the respondents to be biased or pretentious.



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INDUSTRY PROFILE

AUTOMOBILE INDUSTRY TILL DATE

The automobile industry is one of the biggest industries in the world. Being

a major revenue and job generating sector it drives the economies of some of

the superpowers of the world. In India the automobile industry has grown by

leaps and bounds since the advent of the liberalization era the automobile

industry and especially the two wheeler segment has grown by leaps and

bounds.

The liberalization has done away with primitive and prohibitive practices of

licensing and restricted foreign investment have been done away with. The

result of which was the entry of foreign players into the Indian market. The

two wheeler segment was largely dominated by Automobile Products of

India (API) and Enfield in the 50s. Later on towards the end of the 50s Bajaj

Autos began importing Vespa scooters from Italian company Piaggio. In the

following decades the automobile industry in India was mainly dominated

by scooters with API and later Bajaj dominating the market. There were very

few products and choices available as far as motorcycle is concerned and

Enfield bullet and Rajdoot dominated the market.

The 80s saw the entry of Japanese companies in the Indian market with the

opening up of the market to foreign companies. Hero Honda and TVS

Suzuki are companies formed in this era of market reform. The market was

still predominantly scooter dominated and Bajaj and LML were the leading

brands producing the products at that time. Scooter was viewed as a more

family and utility friendly vehicle than motorcycle and hence was preferred.



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The Japanese companies not only collaborated with Indian companies to

produce the already existing products but also brought in new technology as

a result of which the ever conquering 100cc bikes which were extremely fuel

efficient with 4 stroke engines were launched in India. These proved to be

highly successful as they provided a cheap and affordable means of personal

transport to all those who could not buy a car. The flourishing middle class

took a great liking for these bikes and the bike sales in India began to grow

exponentially year on year leading to Hero Honda becoming the leader in

the two wheeler industry in India and the largest producer of two wheelers in

the world.

The post 90s era was the era of liberalization and weakening of restrictive

measures. The government went on an overdrive to support the industry and

all FDI regulations and licensing was abolished. 100% FDI was allowed in

the automobile industry and the excise duty was also considerably reduced

to its current level of 12% on two wheelers.

All these factors combined with the rising fuel prices, the increasingdispensable incomes of households, easy access to finance, etc. have led to

two wheeler industry becoming the backbone of the automobile industry in

India.

The two wheeler industry in India forms a major chunk of the automobiles

produced in India. According to Society of Indian Automobile

Manufacturers statistics for the year 2008 2009, two wheelers comprise

76.49% of market share among the vehicles produced in India.

The production share of two wheelers is quite similar to the market share.

The two wheeler industry comprises around 74% of the total automobiles

produced in India. The SIAM data for the year 2008-09 states that 8,418,626



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two wheelers were produced during the year against a total of

11,175,479vehicles produced during the year.

SEGMENTATION OF TWO WHEELER

A Two Wheeler Sector Sub-Segmenting in the three Segments

.

1. Motorcycle

2. Scooter

3. Mopeds

GROWTH PROSPECTS AND KEY DRIVERS OF INDIAN TWO

WHEELER INDUSTRY

The growth witnessed by the Indian two wheeler industry indicates the

growing demand for low cost personal transportation solutions amongst the

300 million Indian middle class consumers. Despite this spectacular growth

rate, the two wheeler penetration (number of two wheelers per 1000

inhabitants) in India remains lower than other Asian countries. This fact

provides an opportunity for continued growth in the market. India has the

lowest Penetration of two wheelers as compared to countries like Taiwan,

Thailand, Malaysia, Vietnam, Indonesia and China. In the present scenario,

growth in the two wheelers Industry will be driven by several factors

Rise in Indias Young Working Population



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With the rising levels of per capita income of people, the Indian two wheeler

market offers a huge potential for Growth. This growth is relevant in the

light of the fact that 70 per cent of Indias population is below the age of 35

Years and 150 million people will be added to the working Population in the

next five years. The number of women in the urban work force is also

increasing; this will lead to the Growth of gearless scooters.

Rapid Product Introduction and Shorter Product Life Cycle

The last five years have witnessed a sharp increase in new product launches

in the two-wheeler industry. It is estimated that close to 50 new products

have been launched by manufacturers during this period, filling up all price

points and targeted at various consumer segments.

Inadequate Public Transport Systems in most Urban Areas

The economic boom witnessed in the country and the increased migration to

urban areas have increased the traffic congestion in Indian cities and

worsened the existing infrastructure bottlenecks. Inadequate urban planninghas meant that transport systems have not kept pace with the economic boom

and the growing urban population. This has increased the dependence on

personal modes of transport and the two wheelers market has benefited from

this infrastructure gap.

FACTORS AFFECTING THE MARKET

Post 1991, the Indian two-wheeler industry comprising of motorcycles,

scooters and scooterettes opened up tremendously. The Indian motorcycle

industry has expanded at a 24% CAGR over the last five years, It Captured



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almost 80% of the market primarily at the cost of the scooter and Moped

segment. The scooter segment though has witnessed a revival with the

launch of scooterettes aimed at young women and adolescents.

The two wheeler market can be segmented into three categories on the basis

of price Entry segment (


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their brand they have launched their own line of products. E.g. Honda with

Hero Group and Yamaha with Escorts.

Threat from Substitutes such as the Tata 1 Lakh car looms large over the

two-wheeler industry. For the first time, a car has been positioned at a price

point that fills the vacuum between a motorcycle and a low-end car such as

the Maruti 800. Previously, the price of even a low end car (2.5 3 Lakhs)

was too high to attract the customers from the entry and executive two

wheeler segment. Since brand loyalty is lower for these segments vis--vis

the premium segment, these segments may be threatened by the Tata car.

Their buyers will consider the convenience and status associated with

owning a car, which is reasonably priced and therefore a viable substitute.

Rising Customer Expectations

The growth witnessed by the Indian two wheeler industry has attracted a

number of new entrants to the market and it is expected that the Indianindustry will become more competitive in the future. The excess of products

introduced in the past has also raised customer expectations with respect to

reliability, styling, performance and economy.

Inflation is a big factor that may play a part in moving the loyalties and

aspirations of people away from the four to the much cheaper and

economical two wheeler segment. Moreover, the constantly increasing

prices of oil and increasing interest rates on finance are not helping the cause

either.

Environmental Concerns are also quite big on the agenda these days and do

play a part in the preference of consumers choices. The rising global



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temperatures along with daily snippets in the national and international

media about the thinning of ozone and imminent environmental disaster

have all contributed to the making of a present day environmentally

conscious consumer.

Environmental and Safety Concerns

The increasing demand for two wheelers will need to be managed to address

issues relating to overcrowding of roads. Another problem is the insufficient

infrastructure for inspection to ensure adherence to emission norms. As the

industry grows, it is important to regulate the sale of used two wheelers in a

more organised manner for which a mechanism needs to be evolved.

Unregulated sale of two wheelers, especially in the rural areas, are likely to

create issues related to emissions and safety of vehicles.

Creation of Distribution InfrastructureLeading companies need to ensure that on one hand they build adequate

infrastructure in terms of dealerships and servicing stations in the urban

areas and on the other ensure that their distribution infrastructure also

reaches the rural areas

Current Competition has intensified thus requiring greater branding and

marketing. Also due to the presence of relatively undifferentiated products,

advertising and promotions have gained importance. The product has moved

from a commodity to a branded product. However, there is still tremendous



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growth potential especially in the rural markets due to the under developed

road infrastructure for which motorcycles are highly suitable.

`

T he K ey Players

B ajaj Auto,P iaggioInd iaThree W heeler

Hero H onda, Baja j Auto, Honda M otors , TVS M otors , Yam aha , K inic M otorsTwo W heeler

TAT A M otors , M aruti Udyog, Honda Motors , Toyata, Skoda, M ahind&

M ahindra, Daimler Chrysler, Hindustan M otors

Passenger

vehicle

TAT A M otors , Ashok Ley land, Sw ara j Mazda,Mahindra & M ahindrarc e

m otors, Eicher M otors

Commerc ia l

vehicles

Bajaj Auto,24.4%

TVS Motors,

17.7%

Yamaha,

3.8%

Others, 5.8%

Honda

Motors, 8.5%

Hero Honda,

39.8%

Maruti, 50.37

Hyundai, 19.17

Tata Motors,

17.19

Honda, 5.33

Others, 5.73

Two w heeler Passenger veh icle



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COMPANY PROFILE

About India Yamaha Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. Subsequently, it entered

into a 50:50 joint venture with the Escorts Group in 1996. However, in

August 2001, Yamaha acquired its remaining stake as well, bringing the

Indian operations under its complete control as a 100% subsidiary of

Yamaha Motor Co., Ltd, Japan.

India Yamaha Motor operates from its state-of-the-art-manufacturing units

at Faridabad in Haryana and Surajpur in Uttar Pradesh and produces

motorcycles both for domestic and export markets. With a strong workforce

of 2000 employees, India Yamaha Motor is highly customer-driven and has

a countrywide network of over 400 dealers.

The company pioneered the volume bike segment with the launch of its 100

cc 2-stroke motorcycle RX 100. Since then, it has introduced an entire rangeof 2-stroke and 4-stroke bikes in India. Presently, its product portfolio

includes Crux (100cc), Alba (106cc) and Gladiator (125cc).

VISION

To establish YAMAHA as the "exclusive & trusted brand" of customers by

"creating Kando" (touching their hearts) - the first time and every time withworld class products & services delivered by people having "passion for

customers".



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MISSION

We are committed to:

Be the Exclusive & Trusted Brand renowned for marketing and

manufacturing of YAMAHA products, focusing on serving our customer

where we can build long term relationships by raising their lifestyle through

performance excellence, proactive design & innovative technology. Our

innovative solutions will always exceed the changing needs of our customers

and provide value added vehicles.

Build the Winning Team with capabilities for success, thriving in a climate

for action and delivering results. Our employees are the most valuable assets

and we intend to develop them to achieve international level of

professionalism with progressive career development. As a good corporate

citizen, we will conduct our business ethically and socially in a responsible

manner with concerns for the environment.

Grow through continuously innovating our business processes for creating

value and knowledge across our customers thereby earning the loyalty of our

partners & increasing our stakeholder value.



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CORE COMPETENCIES

Customer #1

We put customers first in everything we do. We take decisions keeping the

customer in mind.

Challenging Spirit

We strive for excellence in everything we do and in the quality of goods &

services we provide. We work hard to achieve what we commit & achieve

results faster than our competitors and we never give up.

Team-work

We work cohesively with our colleagues as a multi-cultural team built on

trust, respect, understanding & mutual co-operation. Everyone's contribution

is equally important for our success.

Frank & Fair Organization

We are honest, sincere, open minded, fair & transparent in our dealings. We

actively listen to others and participate in healthy & frank discussions to

achieve the organization's goals.



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OVERVIEW

FOUNDED: July 1, 1955

CAPITAL: 48,302 million yen (as of March 31, 2008)

PRESIDENT: Takashi Kajikawa

EMPLOYEES: 46,850 (as of December 31, 2007)

PARENT: 9,019 (as of December 31, 2007)

SALES: 1,756,707 million yen (from Jan 1, 2007 to Dec 31,

2007)

PARENT: 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007)

SALES PROFILE

Sales (%) by product category (consolidated)

Sales (%) by region (consolidated)



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MAJOR PRODUCTS& SERVICES:

Manufacture and sales of motorcycles, scooters, electro-hybrid

bicycles, boats, sail boats, Water Vehicles, pools, utility boats, fishing

boats, outboard motors, diesel engines, 4-wheel ATVs, side-by-side

vehicles, racing karts, golf cars, multi-purpose engines, generators,

water pumps, snowmobiles, small-sized snow throwers, automotive

engines, intelligent machinery, industrial-use remote control

helicopters, electrical power units for wheelchairs, helmets.

Biotechnological production, processing and sales of agricultural andmarine products and microorganisms.

Import and sales of various types of products, development of tourist

businesses and management of leisure, recreational facilities and

related services.

HEADQUARTERS: 2500 Shingai, Iwata-shi, Shizuoka-ken, Japan

CORPORATE PHILOSOPHY

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 technologies.

It can also be said that our corporate history has taken a path where people



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are the fundamental element and our product creation and other corporate

activities have always been aimed at touching peoples 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.



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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.

SWOT ANALYSIS FOR THE TWO WHEELER INDUSTRY

SWOT ANALYSIS FOR INDIA YAMAHA MOTORS


Strength

Established brands, Strong Brand

Name

Fuel efficient

Style statement

Convenient in heavy traffic

Cheap and affordable

Easy and cheap finance availability

Patents

Good reputation among customers

Weaknesses

Extremely price sensitive

Short PLC

High R and D costs

Opportunities

Growing premium segment

Increasing dispensable income

Environmental concerns

Exports increasing

Very strong demand in the 100cc.

segment dominated by limited

players.

Threats

The Rs.1 Lakh car

Cut throat competition

Increasing number of players in the

market

Rising raw material costs

Increasing rates of interest on finance


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Strength

Size and scale of parent

company.

Effective Advertising

Capability

Committed and dedicated staff.

High emphasis on R and D.

Experience in the market.

Established brand.

Established market channel.

Power, Speed & Acceleration

Weaknesses

Small showrooms.

Not much emphasis on

aggressive selling.

Weak product diversity.

Opportunities

Growing premium segment.

Global expansion into the

Caribbean & Central America.

Expansion of target market

(include women).

Increasing dispensable income.

Threats

Cut throat competition

Increasing number of players in

the market

Rising raw material costs

Increasing rates of interest on

finance

RECENT LAUNCHES



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YAMAHA FZ-S

Yamaha FZ-S 150cc, a recently launched bike by the industry giant Yamaha.

After the grand success of FZ-16 Yamaha has finally launched its modifiedversion (FZ-S) in India. This fabulous bike is equipped with all the

necessary features one may think of. It stands ahead in style and

performance not only in its segment but beyond. This bike is best suited for

those who want elegance and power in one. It is designed and engineered

with the capacity for active and aggressive enjoyment of around-town street

riding and styling, bringing a sense of pride for the owner of the bike. It is

especially designed to satiate riders' desire for style and fashion. It is

popularly referred as the Stylish Macho Street Fighter (Lord of the

Streets).

The primary features of Yamaha FZ-S include:

European international design



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Stainless steel body

Aerodynamic muscular design

High torque rate

Carbon pattern meter console

Latest graphics

Disk brakes

Electric start starting system

Electronic fuel injection system

YAMAHA YZF R15

This is the latest offering from the Yamaha stable. The YZF R15 is the first

truly sports bike launched in India. The looks and design have been done

keeping the bigger R1 in mind and hence the resemblance.

The bike is priced at Rs.97,500 (ex-showroom) across India. It boasts of the

first liquid cooled 4 valve engine in the two wheeler category which gives it

better performance and power. It is a 150cc bike having enough power to

bring chills to the rider when he revs up the accelerator.

CONCEPTUAL FRAMEWORK



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Consumer buyer behavior refers to the buying behavior of final consumers

individuals and households who buy goods and services for personal

consumption. (Philip Kotler)

To understand the buyer, and to create a customer out of him, through this

understanding, is the purpose of buyer behavior. (Ramaswamy and

Namakumari)

It needs to be specified at the outset that there is no unified, tested and

universally established theory of buyer behavior. What is available today,

are certain ideas of buyer behavior.

FACTORS INFLUENCING BUYER BEHAVIOUR

A number of factors influence buyer behavior. They can be grouped under

three broad categories.

1. Factors that are part of buyer as an individual.2. Buyers social environment (group influence).

3. Information from a variety of sources.

1. Factors that are part of the Buyer as an individual

An individuals religion and cultural background, his personality traits, self

concept, his general endowments, his upbringing in short, his overall

biodata play a crucial role in his conduct as a buyer/consumer. These

factors can be grouped broadly into three categories:

i. Personal factors

ii. Cultural factors



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iii. Psychological factors

I. Personal Factors Age, Education, Economic Position, Self concept

An individuals age, level of education, his occupation, overall economic

position and lifestyle all influence his role as a buyer. They decide what

products he will buy and consume. A persons self concept and his concern

about his about status also influence his buying decisions. In fact today

people are very concerned about their image and status in society. Its a

direct outcome of their material prosperity. Status is announced through

various symbols like dress, ornaments, possessions and general lifestyle. The

desire for self expression and self advancement is closely linked with social

status. For several people, status is a major motive force guiding and shaping

their life. Their concept of status decides what material possessions they

should have. Even if a product that constitutes a status symbol is beyond

their immediate reach, their aspiration to possess it will influence their

decision making process.

ii. Cultural Factors Religion, Language etc.

Every culture, every language and every religion group dictates its own

unique patterns of social conduct. Within each religion, there may be several

sects and sub sects; there may be orthodox groups and cosmopolitan groups.

In dress, food habits or marriage in almost all matters of individual life

religion and culture exercise an influence on the individual, though the

intensity may vary from society to society. The dos and donts listed out by

religion and culture impacts the individuals lifestyle and buying behavior.



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iii. Psychological Factors Beliefs, Attitudes, Motivation, Perception

Just like the economic and social conditions, a mans disposition too has a

close bearing on his purchase decisions. Individuals coming under the same

economic and social groups can be vastly different when it comes to certain

personal beliefs, faith and attitudes. One may be timid and plain, while

another may be outgoing and aggressive. One may be traditional in the

overall view of life, while another may be modern. One may be east

innovative, while another may welcome anything new. In fact, the maximum

variations are seen here and in the matter of analysis and assessment too, this

area poses maximum problem to the marketer.

2. Buyers Social Environment (group influence)

The buyer living in a society is influenced by it and is in turn influencing its

course of development. He is a member of several organizations and groups,

both formal and informal. He belongs to a family, he works for a certain

firm, he may be a member of a professional forum, he may belong to a

particular political group, or a cultural body. There is constant interactionbetween the individual and the groups to which he belongs. And all these

interactions leave some imprint on him, which influences him in his day to

day life and consequently, his buying behavior.

There are two broad types of group influences:

i. Influence of intimate group.

ii. Influence of the broad social class.

I. Influence of Intimate Group

Examples of intimate groups are family, friends, close colleagues and

closely knit organizations. These groups exercise a strong influence on the



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lifestyles and the buying behavior of its members. Among these groups the

most influential and primary groups are the family and peer groups. The peer

groups are closely knit groups composed of individuals, who have a

common social background and who normally belong to the same age group.

The peer group has the greatest influence on the individual member as a

stabilizer of styles and behavior patterns.

In any intimate group, there is likely to be an informal group leader. Te

group respects him and looks up to him. Though the leader may not directly

influence every member in his day to day purchases, his judgment on men

and matters, and facts and fashion is respected by the group; and his views

and lifestyle influences their buying decisions. He is normally the innovator

in the group, who first tries new products and new ideas, and then, he

becomes the propagator of those products and ideas. These opinion leaders

or influencers play a key role in marketing. Marketers often try to reach

these leaders first through advertisements and other means of

communication. And if the leaders are convinced, their groups are likely tofollow suit.

ii. Influence of the Broad Social Class

Structurally, the social class is a larger group than the intimate groups. The

constitution of a social class is decided by the income, occupation, place of

residence, etc. of the individual members. The members of a social class

enjoy more or less the same status or prestige in the community. They share

a common lifestyle and behaviour pattern. And they normally select a

product or brand that caters to their class norms. Often they even do their

shopping in the same shopping are and patronize selected shops, which befit



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their class image. This does not mean that all the members of a given social

class will buy the same products and the same brands or conform to the

same style, amounting to a sort of regimentation. Differential liking may

exist among the members. But, in a buying situation in which objective

standard are not available to guide them, they may conform to the class

norms. Studies have shown that the extent of influence the social class has

on its members will depend on the extent of attractiveness of the group holds

out to them. The greater the attractiveness, the larger is the behavioral

conformity.

Study of group influence on the individual buying behaviour will help the

marketers to develop right strategies for different customer segments. It is

not feasible for them to appeal to the fancies of every individual buyer. They

can find commonalities or pattern among specific groups of buyers and

work on them.

iii. Information from various sourcesThe buyer today is exposed to a veritable flood of information, unleashed on

him from different sources. These sources inform him about new products

and services, improved versions of existing products, new uses for existing

products and so on. The information sources that persuade people to try a

product include: advertising, samples and trials, display in shops and

salesmens suggestions.

Each of these sources provides some information to the buyer about the

products. When the buyer sees an advertisement for a product, he is

informed about the existence of the products. Later on, he may develop a

positive or negative attitude towards the product or he may remain neutral.



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In any case, a piece of information about the product is made available to

him and it has some influence on his buying behavior.

THE BUYING PROCESS

1. Problem Recognition

The process of buying normally starts with the recognition of a need by

the consumer. He recognizes a problem and develops a perception of the

problem. Then he seeks information for solving his problem.



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2. Awareness

The customer turns to his environment /world of information around him.

It makes him aware of the existence of the product that would solve his

problem.

3. Comprehension (Evaluation)

Comprehension comes out of his ability to reason with the information.

The awareness and comprehension stages represent the information

processing stage. These two stages constitute the cognitive field of the

purchase process.

4. Attitude

It is the sum total of the individuals faith and feelings towards a product.

As a result of his awareness and comprehension, the consumer develops

an attitude favorable or unfavorable towards the product. The

purchase process will continue only if he develops a favorable attitude or

a liking for the product.

5. LegitimizationThe buyer must be convinces that the purchase of the product is he

legitimate course of action. This stage often stands as a barrier between a

favorable attitude towards the product and actual purchase. Only if the

buyer is convinced about the correctness of the purchase decision, will he

proceed. At this stage, he may seek further information regarding the

product, or attempt to assess the information already available.

Attitude and legitimization constitute the attitude field of he purchase

process.

6. Trial



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Conviction leads the consumer to try the product on a small scale ; he

may buy a sample. He tries to evaluate the product from his own

experience.

7. Adoption

A successful trial leads him to buy/adopt the product.

Trial and Adoption constitute the behavioral field in the buying process.

8. Post-Purchase Behavior

The purchase leads to a specific post purchase behavior. Usually, it

creates some restless ness in the mind of the individual. He is not sure

about the product. He may feel that the other brand would have been

better. He may even feel that the salesman has taken him for a ride. As

this dissonance is uncomfortable, the individual, by himself will seek all

means to recover his conviction and poise. He well seed reassuring

advertisements of the products or he may deliberately avoid positive

stories about the competing brand.

DATA ANALYSIS AND

INTERPRETATION

RESULTS OF THE CUSTOMER SURVEY



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The Age distribution in the sample

Age No. Of Respondents Percentage

16-20 26 52

21-25 19 3826-30 03 06

Above 30 01 02

No. Of Respondents

0

5

10

15

20

25

30

16-20 21-25 26-30 Above 30

No. Of Respondents

INTERPRETATION: Following points can be referred from the above pie

chart The above pie chart is showing that the customers of FZS are mainly

coming from the age group of 16-25 that is around 90%, as Yamaha

claims that they generally target their customers who are between the

age group of 18 to 25, because that people of this age group are

passionate and are style freaks,

So we can say that Popularity of Yamaha is available in the age of

26-30 (around 6%) also because of its reputation in the world market.

The Marital status distribution in the sample

Marital status No. Of Respondents Percentage

Married 05 10

Unmarried 45 90



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No. Of Respondents

0

5

10

15

20

25

30

35

40

45

50

Married unmarried

No. Of Respondents

INTERPRETATION: In this pie chart it is very much clear that 90%

of the Yamahas customer is mainly the youth who are single, so Yamahas

new launch FZS is mostly being accepted by the singles instead of family

oriented people.

The Occupation distribution in the sample.



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Occupation No. Of Respondents Percentage

Student 25 50

Office employee 10 20

Business person 10 20

Others 5 10

No. Of Respondents

0

5

10

15

20

25

30

Student Of fice employee Business

person

Others

No. Of Respondents

INTERPRETATION: Once again we found that Yamahas major customers

are the students of colleges and schools which consists 50%, as they want

something special, new, stylish, masculine and attractive and Yamaha is

providing that in the form of FZS.

The Income groups distribution in the sample



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Income No. Of Respondents Percentage

Upto 10000 10 20

10001-20000 18 36

20001-40000 17 34

40001-60000 03 06Above 60000 02 04

No. Of Respondents

0

2

4

6

8

10

12

14

16

18

20

Upto 10000 10001-20000 20001-40000 40001-60000 Above

60000

No. Of Respondents

INTERPRETATION: In the income group distribution we can analyze that

customers of FZS are coming from the Middle income group people which

is around 90% by including 10001-40000 slab of income group. It shows

that Yamaha is placing their products in the appropriate price range. As the

people of this income bracket can easily afford this Bike.

The Way of purchasing distribution in the sample.



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Purchased by No. Of Respondents Percentage

Cash 28 56

Loan 22 44

No. Of Respondents

0

5

10

15

20

25

30

Cash Loan

No. Of Respondents

.

INTERPRETATION: Here again we can prove that the products of Yamaha

are in the acceptable price range, as we can see that purchasing way of the

customers are leading in the CASH sector. Customers are easily affording

the price of FZS; they are not feeling much problem with the amount of

FZS. Todays customers are ready to pay for better facilities and technology

and they feel that FZS deserves that price which YAMAHA is offering.

The Financing distribution in the sample.



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Paid by No. Of Respondents Percentage

Family 22 44

Self 26 52

Others 02 04

No. Of Respondents

0

5

10

15

20

25

30

Family Self Others

No. Of Respondents

INTERPRETATION: In this pie chart a very important thing can be referred

that Indian Youths are not so much independent in the financial matters,

still they depends on the family, as Yamaha claims that they target the

people of 18-25 age group, but here we can say that they should promote

such kind of advertisements where the Yamaha products can link to the

family. Ultimately family is paying the amount so Yamaha should target

according to family also, so that the view of the children and family

shouldnt clash.

Compared brands with FZS

Compared Brands No. Of Respondents Percentage



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Yamaha 19 38

Hero Honda 12 24

Honda 06 12

Bajaj 13 26

No. Of Respondents

0

2

4

6

8

10

12

14

16

18

20

Yamaha Hero Honda Honda Bajaj

No. Of Respondents

INTERPRETATION: Majority of people is not comparing Yamaha

FZS to any other product and the number of such people is around 38%,

But the second view which we have found that FZS is getting a very tough

competition Fr BAJAJ & HERO HONDA. BAJAJ has launched their new

edition of Pulsar 220 at a very low price (around 70000 ex showroom price),

which is the reason for the tough competition giving by BAJAJ. On the other

hand HERO HONDA HUNK is also giving direct fight to the FZS because

of its MILEAGE only. There are some more competitors which are stable at

their market share in automobile industry.

The choice of Feature which is most important in a bike

Choice of feature No. of respondents Percentage

Style/design 21 42

Pick up 19 38



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New technology 6 12

Quality 4 08

No. of respondents

0

5

10

15

20

25

Style/design Pick up New technology Quality

No. of respondents

INTERPRETATION: If we see the trend of Two wheeler industry we found

that earlier people were looking mainly towards the mileage of the vehicle

but now In our research we collected data and found that now customers

perception has changed and they are shifting towards the style, design &

riding comfort of the vehicle, 42% customers have purchased FZS because

of its Style & Design and only 38% people are looking for the pick up.

So in a way we can say they Yamaha exactly changed the perception of

Indian customers. They are trying to attract customers with new style, design

or look of the bike and creating passion in the customers for the speed and

power.

First Information Source

First Information Source No. of respondents Percentage

Tvcf 28 56

Family friends 05 10



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Newspaper 08 16

Magazine 07 14

Others 02 04

No. of respondents

0

5

10

15

20

25

30

Tvcf Family

friends

New spaper Magazine Others

No. of respondents

INTERPRETATION: As we can see here the major promotional tool

which is influencing the customers is TVCF which stands for Television

Commercial, which is around 56%, after that the major source of awareness

among customers, is Family/Friends. Magazine and newspaper consists 40%in our research.

So here we can say that Yamaha should produce better advertisements

like FZS and they should link their ads with the emotions of the customers

so that the brand recognition by the customers will be for long time. The

customers can still recall the punch lines of Bajaj and Hero Honda such as

HAMARA BAJAJ or HERO HONDA DESH KI DHADKAN. YAMAHA

should also use such kind of heart loving lines.

Customer Perception regarding Yamaha Image after FZS

Improvement No. of respondents Percentage

Yes 42 84



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No 8 16

No. of respondents

0

5

10

15

20

25

30

35

40

45

Yes No

No. of respondents

INTERPRETATION: This is a good result for Yamaha that once again they

are creating place in the heart of the customers, after the discontinue of

RX100 Yamaha has lost very big amount of customers in the last 10 years,

but after the launching of FZS, Yamaha has improved their image among the

customers. Our data is showing that 84% people are admitting that Yamaha

has improved their image after the FZS and R15 launch, feedback which we

have got from the customers were like that Yamaha has produced something

new this time and very stylish and well designed product..

With Yamaha's continued thrust on technology, quality and manufacturing

excellence and introduction of Global Yamaha standards in its operations,

the customers have experienced the real Yamaha and have come closer to

the brand.

FINDINGS



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The customers of FZS are mainly coming from the age group of 16-25

that is around 90%, as Yamaha claims that they generally target their

customers who are between the age group of 18 to 25, because that

people of this age group are passionate and are style freaks,

Popularity of Yamaha is available in the age of 26-30 (around 6%)

also because of its reputation in the world market.

90% of the Yamahas customer is mainly the youth who are single, so

Yamahas new launch FZS is mostly being accepted by the singles

instead of family oriented people.

Yamahas major customers are the students of colleges and schools

which consists 50%, as they want something special, new, stylish,

masculine and attractive and Yamaha is providing that in the form of

FZS.

Customers of FZS are coming from the Middle income group people

which are around 90% by including 10001-40000 slab of income

group.

The products of Yamaha are in the acceptable price range, as we can

see that purchasing way of the customers is leading in the CASH

sector. Customers are easily affording the price of FZS; they are not

feeling much problem with the amount of FZS.

Indian Youths are not so much independent in the financial

matters, still they depends on the family, as Yamaha claims that

they target the people of 18-25 age group, but here we can say

that they should promote such kind of advertisements where the

Yamaha products can link to the family.



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Majority of people is not comparing Yamaha FZS to any other

product and the number of such people is around 38%, but the

second view which we have found that FZS is getting a very

tough competition Fr BAJAJ & HERO HONDA.

Now customers perception has changed and they are shifting

towards the style, design & riding comfort of the vehicle, 42%

customers have purchased FZS because of its Style & Design

and only 38% people are looking for the pick up.

The major promotional tool which is influencing the customers

is TVCF which stands for Television Commercial, which is

around 56%, after that the major source of awareness among

customers, is Family/Friends. Magazine and newspaper consists

40% in our research.

This is a good result for Yamaha that once again they are

creating place in the heart of the customers, after the

discontinue of RX100 Yamaha has lost very big amount of

customers in the last 10 years, but after the launching of FZS,

Yamaha has improved their image among the customers.



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CONCLUSION

After The Separation Main focus of Yamaha has been to Capture the Indian

Market Through its Product Which are Best In terms Of style & Design and

is trying to achieve the target of 14% which it has laid down for the coming

years its Recent Launched Bike FZs & R15 have shaken the market leader

Like Bajaj & Hero Honda & is giving them a tough competition & soongoing Launch Few More Bikes in the market. But in a country like India

where customer generally appreciates mileage it becomes necessary for a

company like Yamaha which produces Bikes whose prices are towards the

higher end to focus on other factors too which influence the consumer

choice of Product like Prices , After sale services and Many more.



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RECOMMENDATIONS

SHOULD IMPROVE THE AFTER SALE SERVICES: During the

survey we found that Yamaha is not satisfying their customers in after

sales services, employees at dealership sometimes use harsh words and

become rude to the customers, parts of the bike are not easily available in

the market. This is the major drawback in capturing the market share so

Yamaha should take some better steps to satisfy and retain their

customers.

WEAK FOLLOW UP FROM DEALERSHIPS: We observed during

the course of our studies that Yamaha was quite weak in following up

with prospective customers. There was no communication from Yamaha

showrooms asking the customers if and when they are willing to buy

their bikes. Hero Honda, Bajaj and Honda showrooms were extremely

attentive in this regard and perform maximum follow up on prospective

customers.

MEASURES SHOULD BE TAKEN TO IMPROVE ITS

DEALERSHIP: Yamaha which is trying to build a brand new image of a

high tech and stylish brand of sports bikes should take appropriate steps

to show it in their showrooms. Showrooms like Oswal Yamaha, and

Shiva Yamaha were very small in size and do not reflect the quality and

scale of Yamaha in the market. Shiva motors was very dirty ambience

and customer will feel that company is not working good thats why they



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are not taking any actions toward their showrooms and this will definitely

hamper the sales, so Yamaha should take care of these things.

POOR PROMOTIONAL CAMPAGIN: The Yamaha ads seen on

electronic and print media are absolutely out of touch with the Indian

culture and thought process. If we see that Bajaj and Hero Honda has

produced a very good link with the Indian family and customers can

easily recall their Ads by well know punch lines like HAMARA BAJAJ

or HERO HONDA DESH KI DHADKAN-DHAK DHAK. Yamaha is

also focusing on this as we can see the AD of YAMAHA ALBA. An

Indian consumer irrespective of their income level has a soft corner for

traditions and culture of India. Hence, all companies including market

leaders like Hero Honda and Bajaj capitalize on this behavior of

customers and design their ad campaigns keeping India in mind.

YOUTH ORIENTED PROMOTION: Yamaha claims that they target

the customers of age group 18-25 but their ad never represents this sothey should make such kind of AD where youth should taken in as centre

of attraction. They should do this earliest to capture the market because

vast majority of people depending on ads and friends as their chief

sources of information about the products.

AGGRESSIVE SELLING: The Company should follow an aggressive

selling concept. A non-aggressive selling concept which is clearly

visible in its advertising campaign which does not hit on the customer

rather aims to provide information in a subtle manner. These days they

have hit on the right target as we can prove through our survey that

people who purchased YAMAHA FZS, 54% people have seen the TVCF



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of Yamaha before purchasing the bike. Emotional advertising which is

the norm in India and which is very successful is not followed.

INDIAN BRAND AMBASSADOR: The Companys brand ambassador

is VALENTINO ROSSY earlier we had JOHN ABRAHAM too but now

YAMAHA does not have any Indian brand ambassador as compared to

its competitors like Hero Honda who have Hrithik Roshan doing their ads

and M.S. Dhoni doing the job for TVS. It is necessary for Yamaha to

have a brand ambassador from India to connect with the Indian customer.

VARIETY IS NEEDED TO BE PROVIDED: Yamaha at the moment

has a very weak product portfolio and its products are not that visible in

the market or displays in dealerships except the Gladiator and now R15.

The lack of product range visibility in dealerships and in the media and

advertisements is adversely affecting the brand of Yamaha. If a customer

want to switch from one bike to another Yamaha is not providing them

options so here Yamaha should work to maintain their loyal customers.Yamaha should maintain and produce the bikes in quarterly or half yearly

so that customers can avail options.

BRAND EXPOSURE SHOULD BE INCREASED OR TO TAP THE

NICHES : There is a large market of unsatisfied customers in India. This

effort would be in the direction to capture the unsatisfied customers and

who are willing to change their brands on bike replacement.

FOCUSSED ADVERTISEMENT ON PRODUCT USP: The

maximum demand among customers constituting the target market of



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India Yamaha Motors is for the power and style features of bikes. Hence,

the company should produce products keeping the above factors in mind.

SAMPLE QUESTIONNAIRE

QUESTIONNAIRE

(For FZ customers)

Contact- Place:

Model:cc:

Date of

purchase:

1. Name: 2. Age:

3. Marital status: a) married b) single

4. What is your occupation?

a) Student b) Office employee c) Factory employee

d) Shop owner e) Business Person f) other: ________

5. Monthly household income:

a) Up to Rs.10,000 b) Rs.10,001-20,000 c) Rs.20,001-40,000

d) Rs.40,001-60,000 e) Rs.60, 001-80,000 f) Rs.80, 001-100,000

g) Above Rs. 100,000



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6. How did you buy the MC? a) Cash b) Loan [D/P: ]

7. Who paid for your MC? a) Self b) Family c) Others:

8. Which model did you compare with? Model: cc:

a) Yamaha b) Hero Honda c) Honda d) Bajaj

9. What was the reason you finally purchased your Bike?

a) Style/design b ) Pick up

c) New technology d) quality

10. Please specify your source of awareness for your Bike?

a) TVCF b) Newspaper c) Magazine d) Family/Friends e)

others

11. Do you think Yamaha has improved after FZS and R15?

a) Yes b) No



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BIBLIOGRAPHY

1) Phillip Kotler; Principles of marketing, 7th Edition; Pearson Publication.

2) Saxena and Rajan; Marketing Management; Tata McGraw Hill; 3rd Edition

3) Ramaswami, V.S. and Namakumari, S.; Marketing Management;

Macmillan India; 2002.

4) Batra Satish & Kazmi SHH ; Consumer behaviour text & cases; 1999.5) Gupta, S.P. and Gupta, M.P.; Business Statistics; 14th Edition; Sultan

Chand Publications.

6) Robert W and Boockholdt, James L.; Factors Leading To change in

consumer behavior: A Study of Managers Perspectives; Creativity Research

Journal, 11(4), Page No. 245-307; 1998.

REFERENCES

1. The Yamaha India website;

www.yamaha-motor-india.com

2. Overview of performance of the Indian Automobile Industry

http://www.siamindia.com/scripts/IndustryStatistics.aspx



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