YAMAHA INDONESIA (A):POSITIONING & Syndicate 2 EMBA 58

LAUNCHING AUTOMATIC MOTORCYCLES IN Ali N (29117526)

Rama O (29117434)
INDONESIA INDONESIA Rivandi (29117555)
GOODWIN AND DEN HUAN, NANYANG TECHNOLOGICAL UNIVERSITY, 2006 Niken (29117413)
NEW AUTOMATIC MOTORCYCLES (IN 2002 TO
MID-2003)
1st Nouvo
• Repositioned as a tough, powerful and practical
bike for man
2nd Mio
• Positioned as a trendy fun bike for the as-yet
untapped female market
MOTORCYCLE INDUSTRY

Engine Yamaha
types & Motor
sizes Co. Ltd

Honda
Mopeds
CLASIFFICATION or Sports Motor Brands
Co. Ltd
Automatic Suzuki
or Motor
Manual
Co. Ltd
YAMAHA MOTOR CO. LTD

Founded as a Established R&D and Reached worldwide Manufactured at 60

motorcycle subsidiaries at 1.4 trillion yen factories in 35
manufacturer in 1955 Indonesia in 1974 revenue in 2005 countries in 2006
INDONESIA MOTORCYCLE MARKET
CHARACTERISTIC:

3rd largest Country’s Per Terrain

motorcycle capita Challenges
market • GDP of US$ 3,100 • Country’s poor roads
• 235 million citizens • 144th in the world condition
• 4th world largest • Few could purchase • High
population cars Maneuverability in
• 26 years of median • Motorcycle as heavy traffics
age affordable
alternatives
 INDONESIA MOTORCYCLE MARKET
CHARACTERISTIC (2):
Despite The relative affordability, a motorcycle was
Manual vs Automatic
still a major purchase for the typical Indonesian

•Motorcycles might cost three years of income
•Indonesian treated their motorcycles as asset
•Considered the cost of replacement parts
•Prefer more popular motorcycles based on greater
economies of scale assumption
•Consider the bike’s future resale value
•Most consumer believed manual motorcycles
outperformed automatics. Perceived to be more
powerful
•Automatics were thought to be less powerful but
easier to control
•Creating perception for manual motorcycles as “man
bikes”
•Creating perception for automatic motorcycles as
“ladies bikes”
•Male centric products
MANUFACTURING AND DISTRIBUTION
Typically, a manufacturers had one main dealer for each of Indonesia’s 33 provinces. Yamaha had 33 main
dealers and nearly 600 sub-dealers

Direct

Sub dealer
Manufactures Main Dealers
Sub dealer
Indirect & Sales
promotion support
MANUFACTURING & DISTRIBUTION AFTER 1998
CRISIS
DIRECT DISTRIBUTION SYSTEM

Took over the wholesales

activites

Provide savings that retained as

profit and the rest were reinvested Cut out wholesaler’s costs
in marketing and promotion
 YAMAHA INDONESIA (B): NOUVO AND Syndicate 2 EMBA 58
Ali N (29117526)
MIO MARKET POSITION Rama O (29117434)
Rivandi (29117555)
GOODWIN AND DEN HUAN, NANYANG TECHNOLOGICAL UNIVERSITY, 2006 Niken (29117413)
 YAMAHA INDONESIA’S AUTOMATIC MOTORCYCLES
By 2005, two automatic motorcycle of Yamaha resulting different result

1. Nouvo; increment sales target among 2. Mio; become very popular not only for female
demographic male target, but only slightly demographic, but also male demographic

• Yamaha dominated the automatic motorcycle market in Indonesia Nouvo and Mio contributed 95% of sales volume
• However, automatic category was only 5 – 10% of total motorcycle market, the rest are for manual category

What was expected after: The launching of competitive products from rivals that may reduce Yamaha’s share, Honda and Suzuki
 RE-BRANDING NOUVO
Before Re-branding

• First launch: May 2002, targeting men

• High profile advertising and promotional
campaign (working with Michael Owen to build
image)
• Disappointing sales

Customers’ feedback:
• Nouvo was too large and too plain
• Negative assumptions regarding automatic
motorcycles: lack of power, had a feminine image
 RE-BRANDING NOUVO – BRAND POSITIONING
After Re-branding

Attempt to save Nouvo in 2003

• Body re-design to be more attractive and colourful
• Launch Nouvo sport for young men which was available in
various color choices and racing-style stickers
• Positioning for male students and male working
professionals

Key characteristic
1. Dynamic
2. Smart
3. Modern
4. Strong
 RE-BRANDING NOUVO – ADVERTISING & PROMOTION
After Re-branding

1. Different message delivered through TV

commercial: Nouvo was tough, muscled, and
well-performed
2. Continue test ride program at dealership and
repair shop
3. Sponsor Nouvo activity club
 LAUNCHING MIO – BRAND POSITIONING
• Launched in Jan 2004
• Physically smaller than Nouvo, more suitable for
female
• Targeting female students, working women, and
young mothers

Key characteristic
1. Dynamic
2. Smart
3. Modern
4. Cute, fun-loving, and pleasant personality

Printed or television commercial focused in portraying

women as modern, forward-thinking, and independent.
 LAUNCHING MIO – CHALLENGES IN LAUNCHING MIO
1. Negative paradigm from female survey respondents regarding motorcycle riding

2. Traditional and conservative society; vehicle purchase decisions were usually made by men
3. Less educated populations, cultural taboo, and inaccurate belief for women riding motor/bicycles
could break women’s hymen
 LAUNCHING MIO – ADVERTISING AND PROMOTION
1. Convince men to allow women relatives to ride motorcycle
Two Approaches 2. Build confidence among the women

Advertising Interactions & Experiences Practical Support

• Hired a Indonesian popular • Create event with Miss Universe • “Siapa Takut Naik Mio?” as
model and actress as brand that added sense of glamour to popular tagline of the instructional
ambassador, implying the Mio lifestyle program
image of cool, fashionable, • Quizzes in popular radio stations • Hired 100 female riding instructors
and attractive • Held events collaborate with across Indonesia to support the
• Used not only television, but women’s magazine and instructional program
also posters in ladies’ cosmetics companies, providing • Provided VCD which contained
restroom and beauty beauty, face care, and stylish riding, safety, and maintenance
magazine as media riding pack as souvenir instruction
• Assured the female riders’ family
about the within reach mobile
customer care
 LAUNCHING MIO - DISTRIBUTIONS
Challenge: Dealers preferred to sell the manual models that were
already popular as they wanted to achieve the highest turnover with
minimum effort.

Attempt: Conducted conference to motivate dealers and asked the Yamaha

representatives and dealers to sign declaration that stated they would commit
to Mio campaign.
RESULTS
The second Nouvo campaign
marginally improved the
bike’s sales, with unit
reaching 20,807 in 2005.
In comparison, the Mio
launch was tremendously
successful, with Mio units
reaching 83,373 and Mio
Sporty units reaching
54,184 in 2005
 RESULTS
Responding to a May
2004, female motorcycle
riders said Mio was high-
quality motorcycle at a
low price.
Mio was unexpectedly
popular among men as
well. In fact. Men
purchased half of all
Mio bikes on the market.
COMPETITION – MANUAL CATEGORY AND TOTAL
MARKET
COMPETITION – AUTOMATIC CATEGORY
Yamaha’s only competitor in automatic category in Indonesia had so far been a low-
cost Taiwanese manufacturer.
The competitive battle was due to heat up in 2006, with Honda and Suzuki both
expected launch automatic bikes to the Indonesia market.
Honda’s automatic bike was called Spacy and Suzuki’s was called Step 125

Competition will come, but we welcome because it will lead to more market
development. Automatics make only a small contribution to total industry sales. We
want to see that total expand, so increased competiton is good for everyone
Yamaha needed more ideas and strategies to defend its market share
PLANNING FOR 2006 AND BEYOND
The branding, positioning, marketing and promotional strategies for Nouvo and Mio a
series of questions
What had made Mio so popular?
Why did Nouvo sales lag so far behind?
And what could be done to improve those Nouvo sales?

And also considered the imminent competitive threat from Honda and Suzuki.
What would likely happen in automatic category?
How would Yamaha compare to its rivals after those companies introduced their own
automatic bikes?
And how should Yamaha respond?