The Two Wheeler Market Globally Marketing Essay

The demand for the undertaking derived as the determination by the top direction in order to rejuvenate and regenerate the procedure of 3S that is Gross saless, Service and Spares.

As the vision of Yamaha provinces that “ Yamaha will set up itself as the ‘exclusive and trusted trade name ‘ of clients by making kando ( touching their Black Marias ) -the first clip and every clip with universe category merchandises and services delivered by people holding passion for clients ” , the undertaking emphasis upon the development of the forces, moving as a in-between nexus between the company and its clients ( traders ) .

The survey titled as “ SALES REVITALIZATION ” aims at researching the schemes and developing an action program to regenerate the gross revenues by beef uping the gross revenues force and their public presentation by planing the needed preparation faculties for the work force.As the nucleus competence of Yamaha provinces “ client # 1 “ and the premier clients for Yamaha are the traders, so Yamaha wants to supply complete satisfaction non in footings of merchandises but in footings of services provided by the gross revenues force who act as the jobber between the company and the clients i.e. traders. Yamaha ‘s mission to develop its most valuable assets-its employees to accomplish international degree of professionalism so that they can present the universe category merchandises and services in a better manner.

The aim of the undertaking is to happen out disagreements in the procedure of presenting 3S Gross saless, Service and Spares by the company to its clients ( traders ) .

Globally, the two-wheeler industry is concentrated in the underdeveloped universe, particularly China and India, which together account for over half the entire world-wide gross revenues of two-wheelers.

The Nipponese makers, Honda, Yamaha, Suzuki and Kawasaki, rule the two-wheeled industry globally. Currently, all major two Wheeler markets, except India, are dominated either by Nipponese houses or their joint ventures. However, in the taking markets, such as China and South-East Asia, a host of local participants exists.

Two Wheeler Industries: The Indian Scenario

The Indian two-wheeler industry can be divided into three wide classs: scooters, bikes and mopeds. Each of these classs can be farther segmented on the footing of several variables, like monetary value, engine power, type of ignition, and engine capacity.

Today, India is the 2nd largest manufacturer and client of two-wheelers in the universe. The Indian two-wheeler industry has undergone a important alteration over the past 10 old ages with the penchant altering from mopeds to scooters, and more late, from scooters to bikes. With the decrease in the monetary value derived function between scooters and bikes, there has been a perceptible displacement towards bikes because of their better styling, higher fuel efficiency, and higher burden transporting capacity.

Rise of a Merchandise: The Motorcycles

Motorcycles are the most expensive of all two-wheelers. They are more powerful than scooters and mopeds, have the highest burden transporting capacity ( which is indispensable for rural countries ) , are fuel-efficient, have better route clasp, and are besides the most expensive. Besides, bikes are viewed as “ voguish ” in the urban countries as compared with scooters and mopeds.

The lucks of the bike industry changed after the proclamation of the broad licensing policy in 1982 where by foreign coaction were allowed. In 1982, the Government allowed foreign participants to come in the industry through joint ventures. Within four old ages, the TVS Group tied up with Suzuki, the Hero Group with Honda, the Bodyguards group with Yamaha and Bajaj Auto Limited ( Bajaj Auto ) with Kawasaki. TVS Suzuki introduced Ind-Suzuki in 1984, Hero Honda Motors Limited ( HHML ) launched CD100 in 1985, and both Escorts and Bajaj Auto launched their theoretical accounts in 1986-87.

Besides, new entrants have entered the market by presenting their merchandises at lower monetary value points, while the bing participants have announced monetary value cuts. This has led to monetary value competition in the domestic market.

Market Segmentation for the Motorbikes

The bike market is divided into three sections.

Entry class theoretical accounts priced between Rs.27, 000 & A ; Rs.37, 000. Here the focal point is, by and big, on monetary value and fuel efficiency. In this class, Bajaj Auto has Boxer scope of bikes and CT 100, HHML has Dawn and KEL BOSS and Yamaha has Crux S.

Executive class theoretical accounts priced between Rs. 38,000 and 45,000. These are theoretical accounts with Japnese and European criterions of technology, styling, fabrication and siting comfort. This section has strong trade name such as Victor ( TVS ) , Passion and Splendor ( HHML ) , Wind and Discover ( Bajaj Auto ) , Freedom ( LML ) , Libero and Fazer ( Yamaha ) . Premium class theoretical accounts priced above Rs. 45,000. Bajaj Auto has the Pulsar 150, the Pulsar 180 and the Eliminator in the higher terminal of this class, HHML has Karizma, CBZ and Ambition, Yamaha has Enticer, A15 and FZs, The bike market in India can be segmented on the footing of monetary value and power. HHML is the market leader in the bikes sections. However the high growing rates of this section have attracted other participants excessively, such as LML and KEL. Since Honda has ever been one of the planetary innovators in developing fuel-efficient engine engineering, the alone merchandising propositions of all HHML bikes are fuel efficiency and easiness of care. Motorcycles are positioned as public presentation oriented, economic system oriented and more late, as merchandises offering a mix of public presentation and economic system.

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India Yamaha Motor ( IYM ) Ltd. Is the fully-owned subordinate of Yamaha Motor Company of Japan. IYM was ab initio known as Yamaha Motors Escorts Ltd. But the parent company, Yamaha Motor Company, purchased Bodyguards Ltd. staying 26 % keeping in their bike joint venture Yamaha Motor India Ltd.

IYM follows Yamaha Motor ‘s corporate mission of making ‘KANDO ‘ – a alone Nipponese word that means ‘touching people ‘s Black Marias. ‘ ‘KANDO ‘ besides describes the ‘spirit of challenge ‘ to make new value exceling client outlooks. IYM is committed to doing merchandises that benefit from the accomplishments and engineering used by Yamaha world-wide.

To carry through client satisfaction, and run into the demands of the Indian market, IYM plans to bring forth one or more theoretical accounts in the first twelvemonth, four theoretical accounts in three old ages. To accomplish these ends, IYM will prosecute three major aims within the company. The first is client satisfaction ; the 2nd is beef uping R & A ; D. IYM ‘s mission is to invariably bring forth what client are looking for, by analysing market tendencies and alterations. The 3rd aim is to optimise the internal working system. IYM ‘s slogan is ‘Speed, Quality, and Yamaha ‘s original design ‘ . Yamaha is taking to do a important part to Indian society and create merchandises that the people of India will take to their Black Marias.

As the car industry witnessed yet another twelvemonth of good gross revenues, there is clear grounds that the kineticss of the Indian two-wheeler industry has changed significantly over the last few old ages. While everyone knows that there has been changeless displacement in demand towards bikes from geared scooters. Assorted companies have entered into the two-wheeled industry.

There are assorted rivals of Yamaha comes from Hero Honda. The driver of growing for Hero Honda was the launch of entry degree, value-for-money bike “ CD-Dawn ” and the upgraded version of “ Splender ” and “ Passion ” . The company which had lost its market portion in FY02 has made a strong rejoinder and regained its portion.

Second another company Bajaj is besides taking in the two-wheeler in the market. The success Bajaj ‘s latest theoretical account Pulsar has helped the company to remain clear of following an aggressive monetary value decrease scheme. Besides, the late launched CT100 has besides enjoyed a just grade of success. The assorted other companies like TVS, LML and Kinetic are besides seeking to capture the good market portion by presenting the different theoretical accounts of motorcycles. The industry has now acquired the traits of the consumer lasting industry, of monetary value wars, famous person indorsement and ever-increasing gross revenues and promotional out go. Earlier, Hero Honda and Bajaj Auto were the lone manufacturers of four-stroke bikes. Now, TVS Motor, Kinetic, LML are besides jostling for infinite in the four-stroke market.

Yamaha Motors India last twelvemonth achieved a dramatic turnaround on the dorsum of the success of its 125cc Enticer and 106cc Libero theoretical accounts IYM is besides seeking to retain their market portion by presenting different motorcycles. They have launched two motorcycles in2004 as alteration Libero and Fazer. Currently, Yamaha have a market portion of approximately 5 % in the Indian two-wheeler market.

SWOT Analysis ( Strengths, weaknesses, chance and menaces )


The quality of merchandise

Attractive design and colourss

Strong trade name name all over the universe every bit good as in India

Handiness of easy finance strategies from ICICI Bank & A ; HDFC Bank

Use of latest engineering for production

Effective gross revenues publicity strategies

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Handiness of the merchandise in the market

Low care and low disbursals per kilometre

Now it comes with a alteration handlebar which is more comfy to drive


Poor advertizement of the merchandise

Few people are non satisfied with the milage of the motorcycles

Not taking feedback from the client daily

Not giving promotional strategies for longer clip periods


The Gross saless may be increased if advertizements are made more attracting to the immature coevals and the advertizement is made with any famous person.

Targeting the upper-middle category people and the immature coevals

Retailer ‘s motive

Demand is increasing with the clip

One of the best and popular trade names of the universe, so company can utilize its trade name image for advertisement and pulling people.


Till many people blindly believe that Splendors ( Hero Honda ) is the best quality merchandise in its section.

Bajaj and TVS are besides bring forthing same section motorcycles at same monetary value with more powerful engine

Different effectual promotional strategies of rivals.

The Marketing Research Process

Management Decision Problem

The job that a Yamaha motor is confronting is low gross revenues and really small market portion despite singular growing in the bike industry. It was the taking participant in the early 1890ss and in 2000 had a portion around 20 % which shrank to 4 % by 2005 in a market which grew by 15 % . It is besides confronting strong competition from other cars makers which is doing it tough for Yamaha to do its impact in Indian scenario.

Research job

Appraisal of the consumer perceptual experience and behaviour in relation with entry degree bikes for Delhi and NCR.

Aim of the Research: –

To analyze the client penchants & A ; purchasing behaviour for the entry-level bike section.

To analyze the media wonts of the entry-level section.

To analyze the demographic of the entry-level section.

Research Design and Plan: –

The research design and program was based on assorted factors like

Method of informations aggregation: –

Research Method

Survey Method: This method was a adopted because it helped in procuring item information from a sample of respondents. The information received from the respondent is recorded on a signifier called Questionnaire as information is gathered by inquiring inquiries to individuals through to posses ‘ desired information, farther more this is the lone method to mensurate attitude and motive straight.

Datas Beginnings:

Primary Datas: The research was done through primary informations as it required first manus information with one to one interview.

Research Instrument:

Since the information was primary, we choose Questionnaire as the research instrument. The questionnaire was designed on the undermentioned evidences.

Most of the people ( in the sample ) presently owned a motorcycle and it is hard to replace a motorcycle with another in the same section. Out of sample size of 290, merely 35 % said they would travel for purchase of a new motorcycle. Out of 158 respondents who owned a motorcycle, 88.6 % would non travel for any farther purchase and merely 11.4 % said that they would travel for purchase of a new motorcycle. So the mark audience for the entry -level section would be people ( Shopkeepers, Traders, Farmers, Workers, Salesman ) who have late started working and people who owned a scooter but their nature of job/work has changed, coercing them to see purchasing a motorcycle.

Even if the mark audience purchases the motorcycle for commercial ground, they by and large use it every bit for their personal intent. Besides for the current proprietors every bit good as for the hereafter proprietors, the purchase ground is more or less same. Hence the placement for the motorcycle in the entry – degree section should be of a household vehicles.

The respondent ranked Mileage as the most of import factor in choosing motorcycle. The following of import factors are Price, manner and Comfort severally. Good milage has become pre-requsite for this section and therefore consumers are anticipating more manner and better comfort at the same monetary value.

46.5 % of the respondent said they would travel for the funding of the motorcycle. Customers who were ready for financing strategies were willing to wait longer. Overall funding strategies are of import for the entry – degree section as they compensate for the higher monetary value of motorcycles in comparing to scooters.

Most of the respondents agreed that there is a general displacement from scooters to bikes. Reason given was: –

Out of the entire respondents 54 % carried burden and half of them carried on a regular basis. The type of burden carried included both personal and commercial. Peoples who caried burden rather frequently used it for light commercial grounds whereas individuals transporting personal burden do n’t transport it on a regular basis.

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Mileage came out to be the best thing about motorcycle which people like/would like about their current/future motorcycle. Performance and manner were the most coveted factors after milage. All the factors were independent of the Socio-Economic Classification.

Most of the respondents wanted the overall running cost to be minimized and excess transporting infinite should be added. Sec- C was influenced by running cost as they the most sensitive to monetary value.

The traveling distance came out greater than 10km per twenty-four hours so most of the respondents but were inclusive for the scope as similar no of people travel different Km per twenty-four hours.

Out of the entire eight factors which influenced the purchase determination top three factors is Recommendation from friends and relations, Advertisement and Financial strategies severally. Word of oral cavity still a predominately most influencing factor. Promotional offers like price reductions, freebies besides have an inexplicit influence.

Majority of the respondents watched telecasting from 1 – 2 hours and this was peculiarly true with SEC – A family.

SEC – C family listen to radio more as compared to other categories and clip continuance is from 30 min to 1 hr.

Newss and Family amusement channels have the maximal viewership in this peculiar section.


Although the favorite past clip activity response is rather varied and it is besides independent of the SEC but T.V. observation is the individual most of import factor.

At the terminal, from my research I can reason that even though the gamut of people falling under the entry – degree section is rather huge and varied, but bulk of the people have similar perceptual experience about the motorcycles and are loking for similar proposition. A proper placement with certain merchandise alteration will surely assist in the addition of gross revenues. The demands of the people are reasonably much known and all makers have limited flexibleness in the merchandise ( monetary value restraint ) and positioning ( low running cost ) . A new proposition targetting the low running cost coupled with better manner and comfort, provided with promotional offers like price reduction, freebees etc with the convenience of fiscal strategy promoted on right platform for ample continuance can work admiration in the of all time of import entry – degree section Low running cost ( better milage, less care cost ) and low-cost starting monetary value point are critical in this section. Telivision and print media should be used more for promotional portion as the incursion degree is increasing really fast. More over people who watch Television for more continuance are more influenced by advertisement and likewise for print media ( peculiarly for newspaper ) .

Certain of import findings from the study are:

Peoples are less likely to switch to a different motorcycle in the same section

Motorcycles are used for more personal intents and if bought for commercial intent, will be every bit used for personal intents.

Low running cost and low M.R.P. are pre-requisite for this section but the consumers are distinguishing motorcycles based on factors such as manner, comfort, price reduction, freebes etc.

Load transporting ability will graetly increase the value proposition of the motorcycle.

Word of oral cavity still the most dominant factor, but advertisment and fiscal strategies are playing more outstanding function.

News channel as one of the most viewed channel. Duration of waching a intelligence chanel is more compared with continuance of watching other channels.

Newspaper supplicant Acts of the Apostless as magazine and non much of the mark audience read separate magazines.

Hindi newspaper ruling the readership.

More jr. people besides purchasing the entry degree motorcycles.


1. As per the research findings deficient transporting infinite and high running cost and proviso for trim Sur were the factors which people falling under this section were non satisfied with the motorcycle. The company should travel in front with the feasibleness survey sing the incorporation of above characteristics in their merchandise.

2. The company should see new and effectual ways of publicity and advertisement because as per our findings advertizement is one of the most influencing factor.

3. Since intelligence and family/entertainment channel has the maximal viewership among the mark audience so these two classs of channels should be taken in due consideration for promotional activities in the electronic media.

4. Dainik Jagran is most read newspaper in Delhi and NCR part so Dainik Jagran should be considered for promotional activities.