1. A PROJECT REPORT ON BRAND IMAGE OF YAMAHA AND ITS COMPETITORS IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)SUBMITTED TO: Submitted By:Miss. Padma Sharma Anshuman Madaan MBA-III Sem..ARYA INSTITUTE OF ENGG.& TECHNOLOGY, JAIPUR SESSION 2011-2013
2. ACKNOWLEDGEMENTSincere gratitude is due to industry guide Mr. GURMEET SINGH, Asst. Manager (ProductPlanning and Brand Management), ROYAL MOTORS, Narwal, Jammu for mentoring. It isthe result of his esteemed guidance that this project culminated.Special thanks are due to Miss.padma Sharma esteemed faculty guide for all the efforts hetook to mentor me regarding the project gratitude is also due to all the team of ProductPlanning and Brand Development, ROYAL MOTORS Pvt. Ltd., Surajpur, for their guidance. ANSHUMAN MADAAN
3. DECLARATIONI, Anshuman madaan student of “Arya institute of engineering and technology,jaipur”hereby declare that the project entitled “Brand Image Of Motor Cycles, With Emphasis onProducts From India Yamaha Motor Pvt. India Ltd.” at Yamaha Motor India Ltd., is theoriginal work done by me and the information provided in the study is authentic to the bestof my knowledge. This study report has not been submitted to any other institution oruniversity for the award or anyother degree. This report is based on my personal opinion hence cannot be referred to legalpurpose. (Anshuman Madaan)
4. EXECUTIVE SUMMARYPROJECT TITTLE-“Brand Image of Yamaha & it,s competitors”we have successfully completed our 45 days internship at "yamaha pvt.ltd."narwal,jammu for the assigned projet tittle"BRAND IMAGE OF YAMAHA & IT,SCOMPETITORS"Mr.GURMEET SINGH,HR manager(Product planning & Brand management) was ourguider who guided us how to carry on with the project.Purpose of the study-The main objective of the research was" TO STUDY THE INTREST OFCUSTOMERS TO YAMAHA PRODUCT" in our project we had been assigned thetask to find out the intrest of customer which buy the yamaha product and how much intrestthey have in product.This report includes an overview of the project undergone during the summer traning.for our project we took sample size of 345 respondents.after that,we analyzed thequestionnarie filled by the respondent.
5. TABLE OF CONTENTSubject 1. Introduction to the Industry 2. Introduction to the Organization 3. Research Methodology 3.1. Title of the Study 3.2. Duration of the Project 3.3. Objective of Study 3.4. Type of Research 3.5. Sample Size and method of selecting sample 3.6. Scope of Study 3.7. Limitation of Study 4. Facts and Findings 5. Analysis and Interpretation 6. SWOT 7. Conclusion 8. Recommendation and Suggestions 9. Appendix 10. Bibliography
6. INTRDOCTIONYamahas history goes back over a hundred years to 1887 when Torakusu Yamaha founded thecompany, which began producing reed organs. The Yamaha Corporation in Japan (then NipponGakki Co., Ltd.) has grown to become the worlds largest manufacturer of a full line of musicalinstruments, and a leading producer of audio/visual products, semiconductors and other computerrelated products, sporting goods, home appliances and furniture, specialty metals, machine tools, andindustrial robots.The Yamaha Motor Corporation, Ltd., begun on July 1, 1955, is a major part of the entire Yamahagroup, but is a separately managed business entity from the Yamaha Corporation. The YamahaMotor Corporation is the second largest manufacturer of motorcycles in the world. Yamaha MotorCorporation owns its wholly-owned subsidiary in the U.S. called Yamaha Motor Corporation, USA,that is handling not only motorcycles, but also snow mobiles, golf carts, outboard engines, and watervehicles, under the brand name of Yamaha as well.In 1954 production of the first motorcycles began, a simple 125cc single-cylinder two-stroke. It wasa copy of the German DKW design, which the British BSA Company had also copied in the post-warera and manufactured as the Bantam.The first Yamaha, the YAI, known to Japanese enthusiasts as Akatombo, the "Red Dragonfly",established a reputation as a well-built and reliable machine. Racing successes helped boost itspopularity and a second machine, the 175cc YCI was soon in production.The first Yamaha-designed motorcycle was the twin-cylinder YDI produced in 1957. The racingversion, producing 20bhp, won the Mount Asama race that year. Production was still modest at15,811 motorcycle, far less than Honda or Suzuki.The company grew rapidly over the next three years and in 1959 introduced the first sports model tobe offered by a Japanese factory, the twin-cylinder YDSI with five-speed gearbox. Owners whowanted to compete in road racing or motocross could buy kits to convert the machine for both roadand motocross racing.
7. By 1960 production had increased 600% to 138,000 motorcycles. In Japan a period of recessionfollowed during which Yamaha, and the other major Japanese manufacturers, increased their exportsso that they would not be so dependent on the home market.To help boost export sales, Yamaha sent a team to the European Grand Prix in 1961, but it was notuntil the 1963 season that results were achieved.After the Korean War the American economy was booming and Japanese exports were increasing. In1962 Yamaha exported 12,000 motorcycles. The next year it was 36,000 and in 1964 production roseto 87,000.In 1963 Yamaha had produced a small batch of 250CC road racing motorcycles for sale, the air-cooled, twin-cylinder TDI. Ever since then Yamaha has built and sold motorcycles that could beraced successfully "straight out of the crate", and as a consequence Yamaha machines have wonmore road races than any other make, exposing Yamaha to a good deal of publicity.By 1965 production was 244,000 units, split about 50/50 between home and export sales. One of thebiggest drawbacks to the sales of two-strokes was that the rider had to mix oil with their gas. Yamahatechnicians accomplished a major technical feat by the development and introduction of a newAutolube system.Basically an oil tank that fed lubricant to a pump that metered oil to the big ends, main bearings andcylinder barrels. It proved very reliable and did away with mixing oil and gas at every fill up.The first overseas factory was opened in Siam in 1966 to supply Southeast Asia. In 1967 Yamahaproduction surpassed that of Suzuki by 4,000 at 406,000 units. Yamaha established a lead with theintroduction of the first true trail bike "the 250cc single-cylinder DTI". The company also developeda two-liter, six-cylinder, double overhead-camshaft sports car unit for Toyota Motor. Which provedhelpful when Yamaha produced their own high-performance four-stroke motorcycles.In 1969 Yamaha build a full size road racing circuit near their main factory at Iwata.By 1970 the number of models had expanded to 20 ranging from 50cc to 350cc, with production upto 574,000 machines, 60% of which were for export. That year Yamaha broke their two-stroke
8. tradition by launching their first four-stroke motorcycle, the 650cc XSI vertical twin modeled on thefamous Triumph twins.Yamaha realized the long-term potential of the two-stroke engine and continued to develop two-stroke bikes, concentrating on engines 400cc and under. In 1973 production topped one million (1,000,000) motorcycles per year for the first time, leavingSuzuki way behind at 642,000 and catching up on Hondas 1,836,000. During the 1970s Yamahatechnicians concentrated on development of four-stroke models that were designed to pass the ever-increasing exhaust emission laws and to be more economical than the two-strokes that had madeYamahas fortune. Over the years Yamaha produced some less successful motorcycles: • The TX750 twin of 1972. • The TX500 double overhead-camshaft, four-valve per cylinder, twin of 1973. • The XS750 shaft-drive, double overhead-camshaft, three cylinder of 1976. • And the XS Eleven, four-cylinder of 1977, was at the time the biggest bike produced by a Japanese manufacturer. • Other four-strokes were more successful, notably. • The XT500 single-cylinder trail bike of 1976. • And the XS350 single overhead-camshaft, twin.In the 70s the RD twin cylinder sports models were a big success as well as the RD250LC andRD350LC water-cooled versions that replaced them in the eighties which were based on the famousTZ race bikes.Production in 1980 was 2,214,000, with export sales of 1,383,000. In the 1980s the companyintroduced the compact XJ four cylinder models, ranging from 550cc to 1100cc. Not wanting to missanything the company also introduced the 750cc and 1000cc air-cooled V-twin models followed bythe XZ550 water-cooled, mid-weight sports bike.
9. INTRODUCTION ABOUT STUDYSome of the major players that dominate the global Motorcycle market are Honda, Yamaha. Suzuki,Kawasaki, and Kinetic. Whereas the Indian market shows dominance of players like Hero Honda,Honda, Bajaj Auto Ltd, TVS motors and Yamaha.India Yamaha Motor (IYM) is a 100% subsidiaryof Yamaha Motor Corporation of Japan. Its manufacturing unit is in Surajpur while Faridabad Plantmainly caters to spare parts and paint shop. These two plants support the production of motorcyclesfor domestic as well as overseas market. Presently 8 models roll out of these two plants. Theinfrastructure at both the plants supports production of motorcycles and its parts for the domestic aswell as overseas market. At the core are the 5-S and TPM activities that fuel lean ManufacturingProcesses. The plants have In-house facility for Machining, Welding processes as well as finishingprocesses of Electroplating and Painting till the assembly line. The stringent Quality Assurancenorms ensure that their motorcycles meet the reputed International standards of excellence in everysphere.The purpose of the project was to study the positioning of brand image in the minds of the customersand also to study the colour preferences of the motorcycle customers. Consumers should havefavourable awareness of brand. Brand awareness and the ensuing positioning in the minds ofconsumers differentiates successful organisation from failed organisation To succeed, in today’srapidly evolving market place organizations should strive continuously to increase awareness of theirbrands for the good.
10. SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERSSociety of Indian Automobile Manufacturers ( ISO 9001-2008 Certified Organisation) is apex bodyrepresenting 44 leading vehicle and vehicle engine manufacturers. It is the face of the Indianautomobile industry.With its regular and continuous interaction with international bodies andorganizations SIAM facilitates up gradation of technical capabilities of the Indian Industry to matchthe best practice worldwide.Indian Automobile Industry is showing accelerating pace of growth rate across all segments.According to Society of Indian Automobile Manufacturers, total sales for allcategories stood at 12,08,851 units as against 9,29,917 units for the correspondingperiod a year-ago, a growth of 30%which the Met department has predicted to be good this year, becomes weak. Rising inflationHowever, SIAM director general cautioned that sales may be affected if the monsoon, is anotherconcern."If the government takes steps to control the money supply, then at some point of time interest rateswill be under pressure. We have to track it very carefully," Mr Mathur, Director General SIAM, said.Sales of two-wheelers in May also jumped by 28.66% over that of May 2009. Motorcycle sales inIndia during May went up by 25.80% to 7,25,311 units from 5,76,537 units in the year-ago period.The countrys largest motorcycle maker Hero Honda registered a growth of 11.74% in its sales at4,01,320 units in May 2010.Sales in rival Bajaj Auto also shot up by 68.73% to 1,91,726 units, whileChennai-based TVS Motor Company posted a 21.21% growth at 52,319 units in May. HondaMotorcycle & Scooter India (HMSI) saw its bike sales jump by 52.24% to 55,110 units.In the scooter segment, the total sales in May jumped by 45.45% to 1,57,509 units as against1,08,291 units sold in the corresponding month last year, SIAM said.HMSIs scooter sales were upby 28.03% at 76,980 units, while TVS Motors scooter sales grew by 40.19% in May to 30,567 units.Hero Hondas scooter sales jumped 23,738 units, an increase by 61.21% from last year.
12. OTHER MAJOR MOTORCYCLE COMPANIES IN THE INDIAN MARKETThe countrys largest two-wheeler maker, Hero Honda, has reported 17.35 per cent rise in sales at414,638 units in the month of march, the best-ever figure reported by the company for the month ofMarch. The company had sold 353,342 units during March last year,Hero Honda Motors Ltd (HHML) said in a statement.HHML registered cumulative sales of 4,600,130 units during 2009-10, against 3,722,000 units in theprevious fiscal, up 23.59 per cent.Hero Honda is recognized today as one of the most successful joint ventures in the world. The Bajaj Group is amongst the top 10 business houses in India. The groups flagship company, Bajaj Auto, is ranked as the worlds fourth largest two- and three- wheeler manufacturer .The countrys second largest two- wheeler maker Bajaj Auto has reported 85.12 percent jump in its motorcycle sales at 244,828 units in March,2010. The company had sold 132,253 units in March last year. During the entire 2009-10 financial year, the company sold 2,506,749 units in the motorcycle segment, a jump of 31.39 percent over 1,907,853 units in the year-ago period, it added.BAL attributed the growth to robust sales of Pulsar and Discover range of bikes. In March, total two-wheeler sales jumped by 84.57 percent to 244,889 units compared to 132,683 units in the same period a year ago, the statement said.
13. TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the topten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagshipcompany of the USD 4 billion TVS Group.Motorcycle segment registered a growth of 7 % in March 2010 with sales of 64,120 units in March2010 when compared to 59,796 units in the same month of the year, 2009.Suzuki Motorcycle India Private Limited is a subsidiary of Suzuki Motor Corporation SuzukiMotorcycle India reported a jump of 76.13 per cent in its sales in March at 21,752 units, on the backof good response to its new products. The company had sold 12,350 units during March 2009. Honda Motorcycles & Scooters India Pvt. Ltd. Factory was established in January 2001. Motorcycle segment sales jumped 63.25 per cent to 65,888 units in March, against 40,360 units in the corresponding period a year ago. The company reported a robust growth of 88.89 per cent in scooter sales at 78,400 units in the said month, compared with 41,505 units in the year agoperiodSALES FIGURE OF MOTORCYCLE COMPANIES IN THEINDIAN MARKET
14. OBJECTIVE OF STUDY
15. The prime objective of this project is to ascertain the brand image of the major motorcyclecompanies present in the Indian motorcycle industry. Also the reason why people prefer certaincolours in the bikes over other colours available in the same models will be studied. The pertinent data will be obtained and studied from the responses of the customers ofmotorcycle through a detailed questionnaire.• To understand the Brand Image of Yamaha vs. its competitors so as to help the company to focus on its marketing plan and strengthen its future positioning.• To check the quality of awareness of Yamaha and its competitors among the Indian customers.• To check the present performance of the companies and study the attributes which are liked and considered by people and also to know about the reputation of company in market.• To study the parameters which people associate with a certain Brand. INTRODUCTION OF THE INDUSTRY
16. Industry ProfileThe Two Wheeler Market Globallythat satisfy The two-wheeler industry is concentrated in the developing world, especially China andIndia, which together account for over half the total worldwide sales of two-wheelers. The Japanesemanufacturers, Honda, Yamaha, Suzuki and Kawasaki, dominate the two-wheeler industry globally.Currently, all major two wheeler markets, except India, are dominated either by Japanese firms ortheir joint ventures.Hero Honda Motor Cycles Limited, an Indian motorcycle company is the world leader by sales.Motorcycles are used for many different purposes. Some use it for daily commuting (especially indeveloping and under-developed worlds) and for hobby pursuits (in developed world).HarleyDavidson, Royal Enfield, BMW, Yamaha etc are the companies this hobby pursuit of thepeople, the world over.Two Wheeler Market: The Indian ScenarioThe Indian two-wheeler industry can be divided into three broad categories: scooter, motorcycles andmopeds. Each of these categories can be further segmented on the basis of several variables, likeprice, engine power, type of ignition, and engine capacity.Today, India is the second largest producer and customer of two-wheelers in the world. The Indiantwo-wheeler industry has undergone a significant change over the past 10 years with the preferencechanging from mopeds to scooters, and more recently, from scooters to motorcycles. With thereduction in the price differential between scooters and motorcycles, there has been a perceptibleshift towards motorcycles because of their better styling, higher fuel efficiency, and higher loadcarrying capacity.Of late, scooters have made a resurgence. Honda Motors and Scooters India
17. Limited is the market leader in the scooter segment. Also female centric two-wheelers like Pep havegained major portion of the market. Rise of a Product: The MotorcyclesMotorcycles are the most expensive of all two-wheelers. They are more powerful than scooters andmopeds, have the highest load carrying capacity (which is essential for rural areas), are fuel-efficient, have better road grip, and are also the most expensive. Besides, motorcycles are viewed as“trendy” in the urban areas as compared with scooters and mopeds.The fortunes of the motorcycleindustry changed after the announcement of the liberal licensingpolicyin1982 where by foreigncollaboration were allowed. In 1982, the Government allowed foreign players to enter the industrythrough joint ventures. Within four years, the TVS Group tied up with Suzuki, the Hero Group withHonda, the Escorts 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 in1985, and both Escorts and Bajaj Auto launched their models in 1986-1987.Also, new entrants have entered the market by introducing their products at lower price points, whilethe existing players have announced price cuts. This has led to price competition in the domesticmarket.Company Profile
18. India Yamaha Motor Private LimitedIndia Yamaha Motor (IYM) is a 100% subsidiary of Yamaha Motor Corporation of Japan. Thecompany has its manufacturing unit in Faridabad and Surajpur, which supports the production ofmotorcycles for domestic as well as overseas market. Presently 10 models roll out of this two plant.Year of Establishment July 1, 1955 (Yamaha Japan)Industry Motorcycle manufacturingInternational Headquarter 2500 Shingai, Iwata-shi Shizuoka-ken, Japan VisionWe will establish YAMAHA as the "exclusive & trusted brand" of customers by "creating Kando"(touching their hearts) - the first time and every time with world class products & services deliveredby people having "passion for customers".MissionBe the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHAproducts, focusing on serving our customer where we can build long term relationships by raisingtheir lifestyle through performance excellence, proactive design & innovative technology. Ourinnovative solutions will always exceed the changing needs of our customers and provide valueadded vehicles.
19. Build the Winning Team with capabilities for success, thriving in a climate for action and deliveringresults. Our employees are the most valuable assets and we intend to develop them to achieveinternational level of professionalism with progressive career development. As a good corporatecitizen, we will conduct our business ethically and socially in a responsible manner with concerns forthe environment.Grow through continuously innovating our business processes for creating value andknowledge across our customers thereby earning the loyalty of our partners & increasing ourstakeholder value.Core competencies1. Customer #1 Yamaha put customers first in everything they do. They take decisions keeping thecustomer in mind.2. Challenging Spirit Yamaha strive for excellence in everything they do and in the quality of goods& services they provide.3. Team-work -They work cohesively with the colleagues as a multi-cultural team built on trust,respect, understanding & mutual co-operation.4. Frank & Fair Organizationm compactness Yamaha Motor is a company that has worked ever sinceits founding to build products defined by the concepts of “high-quality and high-performance” and“light weight and” as they have continued to develop new technologies in the areas of small enginetechnology and FRP processing technology as well as control and component technologies.It can also be said that their corporate history has taken a path where “people” are the fundamentalelement and their product creation and other corporate activities have always been aimed at touchingpeople’s hearts. Their goal has always been to provide products that empower each and everycustomer and make their lives more fulfilling by offering greater speed, greater mobility and greaterpotential.As a company that makes the world its field and offers products for the land, the water, thesnowfields and the sky, Yamaha Motor strives to be a company that “offers new excitement and amore fulfilling life for people all over the world” and to use our ingenuity and passion to realizepeoples’ dreams and always be the ones they look to for “the next Kando.”
20. Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intense excitementthat people experience when they encounter something of exceptional value.Manufacturing processYM Ltd. is IS0-14001 certified. All our endeavors give us reason to believe that sustainab IYMsmanufacturing facilities comprises of 2 state-of-the-art Plants at - Faridabad (Haryana) and Surajpur(Uttar Pradesh). Currently 10 models roll out of the two Yamaha Plants. The infrastructure at boththe plants supports production of motorcycles and its parts for the domestic as well as overseesmarket. At the core are the 5-S and TPM activities that fuel agile Manufacturing Processes. Theyhave In-house facility for Machining, Welding processes as well as finishing processes ofElectroplating and Painting till the assembly line. The stringent Quality .Assurance norms ensure thatour motorcycles meet the reputed International standards of excellence in every sphere.As anEnvironmentally sensitive organization we have the concept of "Environment-friendly technology"ingrained in our Corporate Philosophy. The Company boasts of effluent Treatment plant, Rain water- Harvesting mechanism, a motivated forestation drive. I le development for Yamaha will not remainmerely an idea in pipeline.
21. Yamahas Motorcycle operations in India
22. Research Methodology:Research DesignThe data obtained from the survey was sorted out in a proper sequence for analysis purpose.Incomplete questionnaires were discarded. Analysis was done thereupon using. Microsoft OfficeExcel 2007 platform. Extensive use of bar-graphs, pie-charts was employed. Where there were morethan more than one preference for a given question, proper weightage was given to the differentpreferences according to the order of preference.Microsoft Office Excel 2007 is a general analysis platform from Microsoft Corporation. U.S.A.Microsoft Office Excel has gained across industry acceptance for the simplicity and completeness foranalysis purposes.The results obtained from the analysis using Excel platform are usually not directlyapplicable but nevertheless present the bare facts and data can thus be deciphered . Sample DesignBasis of Sampling Plan and Sample SizeSampling is the component of our research design. A Sample is a subgroup of the population forparticipation in the study.Target population - Males having at least a two-wheeler.The target market for motorcycles isyoungsters. Young people mainly in the age group of 18- 35 years and catering to their wants willserve large portion of market share. Age group above 40 till 60 was considered to gaincomprehensive picture of the Indian motorcycle marketSampling technique - Judgmental sampling was used.Judgmental sampling is a type of non-probability sampling. Population elements are selected on thebasis of judgment of researcher. Researcher chooses elements to be selected in the sample.Of allsampling types, convenience sampling is least expensive and least time consuming.
23. Non-Probability sampling procedure was used. Non-Probability Sampling relies on the personaljudgment of the researcher rather than chance to select sample elements. Researcher decides whichelements to take in the sample. Because there is no way of determining the probability of selectingany particular element for inclusion in the sample, the estimates obtained are not statisticallyprojectable to the population. For data gathering purposes friends, relatives, were surveyed. Alsospot surveys were conducted in the Vehicle parking stands of MMX Mall (Sahibabad) and ShipraMall (Ghaziabad).Sample sizeSample size refers to the number of elements to be included in the study. Determining the samplesize is complex and involves several qualitative and quantitative considerations. Import qualitativefeatures that we considered in determining the sample size include:Bajaj Auto Limited. Importance of the decision 1. Nature of the research 2. Number of variables 3. Sample sizes used in similar studied 4. Complication rates 5. Resource constraintsOnly the brands actively present in the Indian motorcycle were considered namely- 1. Hero Honda Motorcycles Limited 2. India Yamaha Motor Private Limited. 3. Honda Motors and Scooters India Limited. 4. T.V.S. Motor Limited. 5. Suzuki Motorcycle Limited. 6. ‘Others’ was used as a generic category for all other brands.