R e se a rch o n 1 5 0 cc

b ik e se g m e n t in
In d ia , Y A M A H A F Z
Joseph KJ, Nikhil Philip

IIM,Kozhikode.
Indian Two-Wheeler
Industry: A Perspective
Automobile is one of the largest industries in global
market. Being the leader in product and process
technologies in the manufacturing sector, it has been
recognised as one of the drivers of economic growth.
During the last decade, well¬-directed efforts have been
made to provide a new look to the automobile policy
for realising the sector's full potential for the economy.
Steps like abolition of licensing, removal of
quantitative restrictions and initiatives to bring the
policy framework in consonance with WTO
requirements have set the industry in a progressive
track.
Aggressive marketing by the auto finance companies
have also played a significant role in boosting
automobile demand, especially from the population in
the middle income group.
OBJECTIVE

To know the customer’s perception regarding

new bikes FZ by
Yamaha.

· To determine the customer’s satisfaction

regarding bikes and after sales service.

· To determine the factors influencing the choice

of customers regarding bikes

· To know about the competitors of FZ


Conducted by students of IIM

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.. Aftergiving through brain storming
session, objectives were selected and the set
on the base ofthese objectives, A
questionnaire was designed major emphasis
of which was gatheringnew 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

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 andtelephone

interviews are employed.

RESEARCH DESIGN
 

This study is a mix of explorative and formal methodologies

adopting monitoring and observing to study the fz customers

and its competitors and communication to elicit responses
from customers. This is a cross sectional study done during
the month April 2011.
 

For the customer satisfaction study a questionnaire was

formulated containing 22 questions which were sent out for
response mainly through personal interviews of customers at
Yamaha dealerships. This data was later analyzed .
 

To know the Yamaha reputation and sales promotion in

motorcycle market, census method was chosen dealership
were individually visited in the area of Kochi.

SCOPE OF THE STUDY

This study is aimed at providing India Yamaha

Motors with an insight into the success of FZ as
well as the customer’s 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.

LIMITATIONS OF THE
STUDY

· This research is geographically restricted to Kochi

and Trivandrum 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.

R E S U LT S O F
TH E C U STO M ER
SU RV EY
· The above pie chart is


showing that the customers

of FZ are mainly coming
from the age group of 16-25


that is around 69%, 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
20%) also because of its


reputation in the world

market.


In this pie chart it is very much clear that 76% of the Yamaha’s
customer is mainly the youth who are single, so Yamaha’s new launch FZS is mostly
being accepted by the singles instead of family oriented people.
Once again we found that


Yamaha’s major customers

are the students of
colleges and schools which


consists 43%, as they want

something special, new,
stylish,
masculine and attractive and


Yamaha is providing that in

the form of FZ.


In the income group
distribution we can analyze
that customers of FZS are
coming from the Middle
income group people which is
around 73% 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.


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.Today’s
customers are ready to pay
for better facilities and
technology and they feel that
FZS deserves that price which
YAMAHA is offering.


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 shouldn’t
clash.


Majority of people is not
comparing Yamaha FZS to
any other product and the
number of such people is
around 39%, 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.


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 customer’s
perception has changed and
they are shifting towards the
style, design & riding comfort of
the vehicle, 54% customers
have purchased FZS because of
its Style & Design and only 2%
people are looking for the
mileage. 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. So through this we have
proved our First hypothesis
which was regarding the
Yamaha’s new launch of FZ &
FZS that has changed the
customer’s perception regarding
choice of bikes.
As we can see here the major
promotional tool which is
influencing the customers is
TVCF which stands for Television
Commercial, which is around
45%, after that the major source
of awareness among customers,
is Family/Friends. Magazine and
newspaper consists only 9% in
our research, but if we look
them at a very good sample size
then it is around 2% only.
 


So here we can say that Yamaha



should produce better

advertisements like FZ 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.

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 98%

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..
PURCHASING REASONS
 
OBSERVATION

 

 

When we analyze the above Bar Diagram we can

clearly find out that now a days customer are

not looking for mileage at all, they are going for
style and design, so by conducting this survey
we have found that after the launch of Yamaha
FZS people are giving second thought to
mileage which was first in the previous days.

 
OBSERVATION: 1: 60% of the people in the 20001-40000 income group opt for style
and 54.5% in 10000-20000.
OBSERVATION: 2: Style/Design & riding comfort are the two most significant factors
for
people.
RECOMMENDATIONS

· SHOULD IMPROVE THE AFTER SALE

SERVICES:
· WEAK FOLLOW UP FROM DEALERSHIPS
· POOR PROMOTIONAL CAMPAGIN
· FOCUSSED ADVERTISEMENT ON
PRODUCT USP: