Project Report On

Customer Satisfaction and Competition Analysis

Of

Two Wheelers Industries

With Special Reference To

At Greater Noida

In Partial Fulfillment of the Requirement of

Master Of Business Administration

By

Vishnu Sharma

MBA-3

To

At A Glance

Acknowledgement

It is a pleasure to record my thanks and gratitude to persons and organizations whose generous help and support enabled me to complete this project within the stipulated time period. My special thanks are due to head sales & Marketing, Yamaha Motors Ltd., for his active help and support in making me understand Indian two wheelers industry, who guided me at each step during my training period and without whom preparation of this report would not have been possible. I would like to thank Mr. Bibhas Basumatray Project guide, Universal Business School, Karjat, who guided me for the industrial training.

I am greatly indebted to all those persons who have helped me in some way or other in the completion of the project.

TABLE OF CONTENTS

Sr. No. Particulars Page1. Introduction 2. Critical review of literature3. 3.1 Corporate Introduction

3.2 Company Profile3.3 Industry Profile3.4 Products of Yamaha3.5 SWOT checklist

4. 4.1 Research Methodology4.2 Research problem and objective 4.3 Research process4.4 Research design4.5 Scope of study

5. Data Collection and Presentation6. Graphical Data Analysis and Its Interpretation7. Findings of The Research8. Gaps in Literature Review9. Scope of further Research10. Problem Identification11. Conclusion12. Suggestion13. Limitations14. Annexure15. Bibliography

Executive Summary

Objective:

To view the satisfaction level and the competency for two wheelers industries.

Research Methodology:

The research had to be conducted through a survey based on questionnaires

Sample size

200 Respondents

Brands Covered

Hero Honda Bajaj Yamaha Honda TVS Suzuki

Target Area

New Delhi Noida Greater Noida

Sampling Used

Simple random

Scaling Used

5 point likert scale

Data Analysis:

Analysis was done on the basis of 22 parameters. Bar charts were developed on these parameters which compare different brands in the 2 wheeler industry with the help of these charts. Yamaha’s position in the market is found and analyzed.

Suggestions:

Introduction of new brands may turn the market oligopolistic but will definitely increase the market share.

Looks and style should not be over stressed as compared to quality and mileage.

Yamaha does not have any successful 100-135 cc and 153 cc above bike.

Yamaha’s R&D facilities should coordinate with the marketing wing to give customers what they want.

Secondary research shows that Yamaha has good brand awareness. But when it comes to real market, it is an illusion.

360 degree marketing approach with aggressive promotional campaigns should be followed.

Focus should be on young teenagers and executives as they represent largest portion of the bike user segment

Provide better sales follow up which almost every brand lacks.

Indian customers generally do not use bike for fashion but as a necessity so mileage should be a concern.

INTRODUCTION

Research means detailed study of a problem. Here, the details of the marketing problem are collected and studied, conclusions are drawn and suggestions are made to solve the problem quickly, correctly and systematically. In MR, specific marketing problem is studied in depth by collecting and analyzing all relevant information and solution are suggested to solve the problem which may be related to consumers, product, market competition, sales promotion and so on.

MR is special branch of marketing management. It is comparatively of recent in origin. MR acts as an investigative arm of a marketing manager. It suggests solution on marketing problem for the consideration and selection by a marketing manager, MR also acts as an important tool to study buyer behavior, changes in consumer life-style and consumption patterns, brand loyalty and forecast market changes.

In brief, MR facilitates accurate marketing decisions for consumer satisfaction on the one hand and sales promotion on the other hand. It is rightly treated as the soul of modern marketing management. MR suggests possible solution on marketing problem to marketing manager for his consideration and final selection. It is rightly said that the beginning and end o marketing management is marketing research. It is primarily used to provide information needed to guide marketing decision, market mix. It acts as a support system to marketing management.

INCREASING NEED OF MARKETING REASEARCH

1) Growth and complexity of markets: - Markets are no more local in character. They are now national and even global in character. The marketing activity is becoming increasingly complex and broader in scope as more firms operate in domestic and global markets. Manufactures find it difficult to establish close contact with all markets and consumers directly. Similarly, they have no control on the marketing system once the goods are sold out.

2) To middlemen. This situation creates new problem before the manufacturers which can be faced effectively through MR as it acts as a feed-back mechanism to ascertain first

hand information, reaction, etc. of consumers and middlemen. Marketing activities can be adjusted accordingly.

3) Wide gap between producers and consumers: - marketing research in needed as there is a wide gap between producers and consumers in the present marketing system. Due to mass scale production and distribution, direct contact between producers and consumers. Producers do not get dependable information as regards needs, expectation an reaction of consumers; they are unable to adjust their products, packaging, prices, etc. as per the needs of consumers. The problem created due to information gap can be solved only through MR as its possible to establish contact with consumers and collect first hand information about their needs, expectation, likes, dislikes, preferences and special features of their behavior. Thus, MR is needed for removing the wide communication gap between producers and consumers.

4) Changes in composition of population and pattern of consumption: - In India, many changes are taking place in the composition of population. There is a shift of population from rural to urban areas. There have been considerable changes in consumption and expenditure patterns of consumers in India,. The incomes of the people, in general, are rising. This brings corresponding increase in their purchasing capacity and buying needs habits. The demand for consumer durables is fast increasing. The market ar now flooded with consumer durables like TV sets and so on. Manufacturers are expected to know such qualitative and quantitative changes in the consumer preferences and their consumption pattern. For achieving this objective, MR activities are necessary and useful. In brief, MR in needed for the study of changes in the pattern of consumption and corresponding adjustment in the marketing planning, policies strategies.

5) Growing importance of consumers in marketing: - Consumers occupy key position in modern marketing system. They are now well informed about market trends, goods available, consumer rights and protection available to them through consumer protection acts, the growth of consumerism has created new challenges before manufacturers and traders.Even growing customer expectations create situation when manufacturers have to understand such expectations and adjust the production policies accordingly. Indifference towards consumer expectations may lead to loss of business. In the present marketing system, consumers cannot be taken for granted. Marketing research particularly consumer research gives valuable data relating to consumers. It is possible to use such data

fruitfully while framing marketing policies. Thus, marketing decisions can be made pro consumer through marketing research activities.

6) Shift of competition from price to non-price factors: - Cut-throat competition is unavailable in the present marketing field. Such competition may be due to various factors such as price, quality, and packaging, advertising and sales promotion techniques. Entry of new competitors creates new problems in the marketing of goods and services. In addition, market competition is no more restricted to price factor alone. There are other non-price factors such as packaging, branding, after-sales and advertising which create severe market competition. Every producer has to find out the extent of such non-price competition and the manner in which he can face t with confidence. MR is needed as it offers guidance in this regards. A manufacturer can face market competition even by using certain non-price factors. The shifting of competition from price to non-price factors has made marketing of consumer goods more complicated and challenging. This challenge can be faced with confidence by using certain measures through marketing research.

7) Need of prompt decision making: - in competitive marketing, marketing executive have to take quick and correct decision. Companies have to develop and market new products more quickly than ever before. However, such decision is always difficult. Moreover, wrong decisions may loss to the organization. For correct decision making, marketing executive need reliable data and up to date market information. Here, MR comes to the rescue of marketing manager. Problems in marketing are located, defined, analyzed and solved through MR techniques. This suggests its need as a tool for decision making in present highly competitive market system.

CRITICAL LITERATURE REVIEW

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behavior such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and the other products against which the customer can compare the organization’s products.

Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service behaviors, Commitment to the customer and Innovation. These factors are emphasized for

continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. The basis for the measurement of customer satisfaction is by using the gap between the customer’s expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction “gap” which is objective and quantitative in nature customer satisfaction equals perception of performance divided by expectation of performance.

Marketers in recent times have realized the importance of marketing orientation, and this is being reflected in the application of marketing mix elements. Consumer’s needs are fundamental to the formulation of any marketing strategy, from developing a communicational plan. It may be worthwhile to explore the intricate aspects of consumer satisfaction level which focuses on ‘consumer needs’. These concepts enable marketers to analyze the acceptability of strategies planned by them.

Even though we cannot know everything that is to be known, we do need some in depth knowledge about the consumers, stating with who is he. Is there a real Indian customer or there is set of stereotype. All the conventional wisdom in market research tends to favor the view that there are distinct types, and we need to isolate them according to some parameter and label them.

Customer satisfaction as the key element for success in business is a major concern for any industry. In this paper I have tried to propose a how customer satisfaction level can affect the performance of an organization.

Customer satisfaction, a business term is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspective of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.

Measuring Customer Satisfaction

Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.

Selecting Target Market

A review of marketing opportunities often helps in identifying distinct consumer segments with very distinct wants and needs. Identifying these groups, learning how they behave and how they

make their purchase decisions enables the marketer to design and market products or services particularly suited for their wants and needs.

Based on earlier done research following conclusion were drawn about Yamaha as a brand in two wheeler industry:

Yamaha’s objective –

It produces bikes that have speed and power irrespective of the mileage.

Customer’s age –

20-35 years

Income group –

Upper middle class and high class

Profession –

Students and young executives

Prime Focus –

Style Performance Value of money

Based on earlier research done Hero Honda, Bajaj Auto and Enfield motorcycles have come out tops in the customer satisfaction ratings in the 20011 TNS Motorcycle total Customer Satisfaction Study conducted by TNS Automotive.

The study says that newly launched motorcycles including the Splendor and CBZ from Hero Honda. Discover and Pulsar from Bajaj and Bullet 350 from Enfield have been ranked highest in their respective segments.

The study was conducted by compiling responses of more than 7,000 new motorcycle buyers as regards the performance of more than 50 models across parameters like sales satisfaction, product quality, motorcycle performance and design, after sales service, brand image, and cost-of-ownership.

The index score provides a measure of satisfaction and loyalty that a given model or brand enjoys among its customers.

The study also found that the expectation of the buyer of standard motorcycles (entry level bikes) has gone up from the previous level, now the buyer also expects similar attention and commitment as the buyer of higher value bikes.

Styling of the bikes in executive segment is gaining importance in overall customer satisfaction. In transacting with the service dealer, competitive pricing and explanation have gained importance as well as have high impact on retention.

For the upper executive segment latest technology and style have gained importance. Explanation of feature and benefit gained in terms of stated importance while salesperson knowledge impacts largely on retention.

Premium segment buyers are at the center of focus for all of the manufacturers that have educated the customers and empowered him to buy consciously after comparing all the option, now he expects manufacturers to give him the technology, he questions salesperson and look for the best financing options available and demands quick service. For future purchases the preference for motorcycles with high engine capacity (150cc and above) is seen in all four regions of the country however it is almost 70% in south closely followed by west. Across the country, close to 24% of current motorcycle owners intend to upgrade to a four-wheeler as their next vehicle

CORPORATE INTRODUCTION

COMPANY PROFILE

About Yamaha motors India sales 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 range of 2-stroke and 4-stroke bikes in India. Presently, its product portfolio includes Ray-Z(113cc), VMax(1679cc), YZF R1(1200cc), FZ 1 (998cc), YZF R15(150cc), FAZER(150cc), FZ-S(150cc), SZ-R(153cc) etc.

We 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 delivered by people having "passion for customers".

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.

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. Everyones 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 organizations goals.

Manufacturing Process:

IYMs manufacturing 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 both the plants supports production of motorcycles and its parts for the domestic as well as oversees market. At the core are the 5-S and TPM activities that fuel our agile Manufacturing Processes. We have In-house facility for Machining, Welding processes as well as finishing processes of Electroplating and Painting till the assembly line.

The stringent Quality Assurance norms ensure that our motorcycles meet the reputed International standards of excellence in every sphere. As an Environmentally 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. The IS0-14001 certification is on the anvil - early next year. All our endeavors give us reason to believe that sustainable development for Yamaha will not remain merely an idea in pipeline. We believe in taking care of not only Your Motoring Needs but also the needs of Future Generations to come.

Corporate Philosophy:

For society, for the world.

Yamaha works to realize

Our corporate mission of realizing 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 component technologies.

It can also be said that our corporate history has taken a path where “people” are the fundamental element and our product creation and other corporate activities have always been aimed at touching people’s 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.”

Hierarchical Structure

Managing Director and CEO

Senior Vice President

Vice President Top Management

Associate Vice President

Chief General Manager

General Manager Senior Management

Deputy General Manager

Chief Manager

Manager Middle Management

Assistant Manager

Senior Superintendent

Senior Officer

Officer Operational Staff

Assistant Officer

Industry Profile

The Two Wheeler Market Globally

The two-wheeler industry is concentrated in the developing world, especially China and India, which together account for over half the total worldwide sales of two-wheelers. The Japanese manufacturers, 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 or their joint ventures.

Hero Moto Corp, an Indian motorcycle company is the world leader by sales.

Motorcycles are used for many different purposes. Some use it for daily commuting (especially in developing and under-developed worlds) and for hobby pursuits (in developed world). Harley Davidson, Royal Enfield, BMW, Yamaha etc are the companies that satisfy this hobby pursuit of the people, the world over.

Two Wheeler Market: The Indian Scenario

The Indian two-wheeler industry can be divided into three broad categories: scooters, motorcycles and mopeds. Each of these categories can be further segmented on the basis of several variables, like price, engine power, type of ignition, and engine capacity.

Today, India is the second largest producer and customer of two-wheelers in the world. The Indian two-wheeler industry has undergone a significant change over the past 10years with the preference changing from mopeds to scooters, and more recently, from scooters to motorcycles. With the reduction in the price differential between scooters and motorcycles, there has been a perceptible shift towards motorcycles because of their better styling, higher fuel efficiency, and higher load carrying capacity.

Of late, scooters have made resurgence. Honda is the market leader in the scooter segment. Also female centric two-wheelers like Activa have gained major portion of the market.

Rise of a Product: The Motorcycles

Motorcycles are the most expensive of all two-wheelers. They are more powerful than scooters and mopeds, 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 motorcycle industry changed after the announcement of the liberal licensing policy in 1982 where by foreign collaboration were allowed. In 1982, the Government allowed foreign players to enter the industry through joint ventures. Within four years, the TVS Group tied up with Suzuki, the Hero Group with Honda, 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 in 1985, and both Escorts and Bajaj Auto launched their models in 1986-87.

Also, new entrants have entered the market by introducing their products at lower price points, while the existing players have announced price cuts. This has led to price competition in the domestic market.

Market Segment for Motorcycles

The motorcycle market in India can be segmented on the basis of price and power. The motorcycle market is divided into five segments. Basic category models priced betweenRs.30, 000 - Rs.40, 000. Here the focus is, by and large, on price and fuel efficiency. In this category, Bajaj Auto has Platina, HMC has CD-Deluxe and Yamaha has Crux. In the standard category i.e. Between Rs.42, 000 – Rs.50, 000, Bajaj Auto has Platina-125, HMC has Splendor and Splendor NXG and Yamaha has Alba and GS-5. Executive category models priced between Rs.55,000 and 65,000. These are models with Japanese and European standards of engineering, styling, manufacturing and riding comfort. This segment has strong brand such as Victor (TVS), Passion Pro and SuperSplendor (HHML), Discover (Bajaj Auto), Gladiator (Yamaha), Stunner and Shine (HMSI) and Zeus (Suzuki). Deluxe category (Rs. 70,000 – Rs. 90,000) includes FZ-Sand FZ-16 (Yamaha), Hunk and CBZ Xtreme (HMC), Pulsar150 and 180 (Bajaj), Apache (TVS), Unicorn (HMSI) and GS-150 R (Suzuki). Premium category models priced above Rs. 90,000. Bajaj Auto has the Pulsar 200 and 220, Apache- RTR EFI(TVS) and R15 (Yamaha) and Karizma ZMR (HMC). HMC is the market leader in the motorcycles segments. Since Honda has always been one of the global pioneers in developing fuel-efficient engine technology, the unique selling propositions of all HMC motorcycles are fuel efficiency and ease of maintenance. Motorcycles are positioned as performance oriented, economy oriented and more recently, as products offering a mix of performance and economy.

YAMAHA PRODUCTS

Yamaha Motor Company Limited - A Japanese motorized vehicle-producing company (whose HQ is at 2500 Shanghai, Iwata, Shizuoka), is part of the Yamaha Corporation. After expanding Yamaha Corporation into the worlds biggest piano maker, then Yamaha CEO Genichi Kawakami took Yamaha into the field of motorized vehicles on July 1, 1955. The companys intensive research into metal alloys for use in acoustic pianos had given Yamaha wide knowledge of the making of lightweight, yet sturdy and reliable metal constructions. This knowledge was easily applied to the making of metal frames and motor parts for motorcycles. Yamaha Motor is the worlds second largest producer of motorcycles (after Honda). It also produces many other motorized vehicles such as all- terrain vehicles, boats, snowmobiles, outboard motors, and personal watercraft.

The Yamaha corporate logo is comprised of three tuning forks placed on top of each other in a triangular pattern.

In 2000, Toyota and Yamaha Corporation made a capital alliance where Toyota paid Yamaha Corporation 10.5 billion yen for a 5 per cent share in Yamaha Motor Company while Yamaha and Yamaha Motor each bought 500,000 shares of Toyota stock in return.

RACING HERITAGE

Yamaha has a long racing heritage where it has had its machines and team win many different competitions in many different areas, for example both road and off road racing, also Yamaha has had great success with riders such as Bob Hannah, Heike Mikkola, Kenny Roberts, Chad Reed, Jeremy McGrath, Stefan Merriman, Wayne Rainey, and the latest, Valentino Rossi. Yamaha is known to those who are older in age as the designer of the modern motocross bike, as they were the first to build a production mono-shock motocross bike (1975 for 250 and 400, 1976 for 125) and one of the first to have a water-cooled motocross production bike (1981, but 1977 in works bikes). Since 1962, Yamaha produced production road racing grand prix motorcycles that any licensed road racer could purchase. In 1970, Non-factory "privateer" teams dominated the 250cc World Championship with Great Britain’s Rodney Gould winning the title on a Yamaha TD2.

MOTORCYCLE MODELS

Yamaha has made an extensive number of two- and four-stroke scooters, on-road and off- road motorcycles. The Yamaha XS 650, introduced in 1970, was such an overwhelming success that it crippled the British monopoly of vertical twin motorcycles.

YAMAHA MOTORCYCLES MODEL IN INDIA

1. VMAX – Exhibit Your Pride

CONCEPT

VMAX the Legend continues…

During the late 90’s Yamaha’s VMAX project team started to work on the rebirth of a legend. The team understands just how special the original VMAX is to its owners – as well as those fans who admired the bike without ever riding one. The project team identified a set of four goals that would enable them to create a worthy successor to the legendary original model.

Awesome acceleration feeling together with strong performance

Distinctive, precise and sharp handling

A sophisticated chassis with unique bodywork

With these main aims in mind, the development team have created an all-new powerful state-of-the-art 1,679cc V4 engine providing 200 PS and 166.8 Nm of torque combined with Yamaha’s finest and latest electronic engine control technology such as YCC-I and YCC-T. We’ve also created an all-new low-profile diamond-type frame, which uses the engine as a stressed member in order to deliver the right balance of rigidity, which makes for excellent straight line stability – together with precise and sharp levels of cornering. All packed in a head-turning and forceful appearance.

Owners of the original model – as well as newcomers to the VMAX world – can be sure that the new VMAX delivers an unforgettable combination of innovation and acceleration.

The new VMAX stays true to the philosophy of the genuine hot-rod. Imagine yourself gripping the drag bars and feeling the mega-wide 200/50 R18 rear tyre transfer all the V4’s incredible 200 PS and 166.8 Nm of throbbing torque to the ground – it’s got to the ultimate adrenaline ride. We are proud to say the VMAX is back!

2. YZF-R1 - Embodiment of Your Reflection

CONCEPT

YZF-R1 - State-of-the art race technology

Yamaha R1 represents a paradigm shift in technology, performance and controllability among liter class sport bikes. The R1 has been designed to be the “Ultimate Cornering Master 1000” of the open super sport class. Inspired by Yamaha’s M1 MotoGP race bike, this latest generation 998cc R1 features a crossplane crankshaft design with an uneven firing order to provide outstanding yet easy to control torque and an exceptionally linear throttle feel never experienced before. But there is far more to R1 than just a revolutionary engine.

Crossplane crankshaft technology proven in victory after victory on MotoGP® machines provides a high-tech uneven firing interval. Unlike typical inline-four engine design, where the two outer and two inner pistons move together in pairs with 180° intervals, the crossplane crankshaft has each connecting rod 90° with a unique firing order of 270° – 180° – 90° – 180°.

This overcomes the inherent fluctuations in inertial torque during each engine revolution, and the accompanying peaky torque characteristics. Instead, combustion torque continues to build, giving the rider more linear throttle response with awesome power and traction out of the corners.

This R1 keeps all the technological superiorities developed for its predecessor: YCC-T™ (Yamaha Chip Controlled Throttle) is MotoGP® inspired fly-by-wire technology used to deliver instant throttle response. YCC-I® is Yamaha Chip Controlled Intake which is a variable intake system that broadens the spread of power. The fuel injection system provides optimum air/fuel mixtures for maximum power and smooth throttle response.

The R1 features Yamaha D-MODE (or drive mode) with rider-selectable throttle control maps to program YCC-T performance characteristics for riding conditions.

Yamaha believes that developing motorcycles is both a technological and an artistic endeavor. It pursues a level of performance that transcends mere specifications. The goal is to produce technologically superior motorcycles that should have a deep and intangible emotional appeal. It is what defines the company and this is what we call the “Art of Engineering".

3. FZ 1 – The Brutal Beauty

CONCEPT

THE BRUTAL BEAUTY

The FZ1 was born for life on the street, and its muscular frame is ready for anything. Its 998cc Super sport-based engine packs a mighty midrange punch. And for 2010, the ECU mapping has been revised to achieve improved throttle response in the low to mid-rpm range.

The die-cast aluminum frame cuts its way through the curves like a super sport bike, to ensure that you’re always in charge.

The FZ1 has got heart-pumping performance, with serious attitude on top and a lean and mean look that's all about raw power. The FZ1 is equipped with an under cowling as standard.

4. YZF R15 – Racing Instinct

CONCEPT

Racing Instinct. - Passing on the “R series” DNA -

Humachine Technologies & Sensual Racing Form -

The YZF-R1 and YZF-R6 are equipped with under cowls that are based on the image of a diffuser, to give them the best form for aero-management. These are not cowls for simply enclosing the engine, but forms composed of blade surfaces that actively control airflow. This spirit has been directly inherited by the YZF-R15 version 2.0.

“Harmony between rider and machine.” YAMAHA's Human Technology involves studying the form of the motorcycle actually in motion with the rider on it. The R series is the embodiment of 1) a wide frontal space that protects the rider, 2) an easy to ride seating area that gives riders the freedom of movement and allows them to steer effectively, 3) the glamorous tail treatment that takes into account the management of airflow behind the rider, and 4) a sensual racing form that brings all 3 of these elements together in a harmonious package. These characteristics have been splendidly reproduced in the YZF-R15 version 2.0.

The YZF-R15 version 2.0 is a new model that has been developed under the concept of a “Graded Up R15.” While maintaining the proven ease of handling of the existing R15, the R15 version 2.0 boasts of spruced up looks and better performance in circuit riding. The design

elements are borrowed from the supersport model YZF-R1 that is adapted from YZR-M1 MotoGP race machine.

The YZF-R15 version 2.0 – is a 150cc liquid-cooled 4-stroke fuel injected bike. The R15 version 2.0 has undergone changes as compared to the present YZF-R15 in the specs of the Engine Control unit (ECU), drivetrain unit, a long aluminum swing arm, wider front and rear tires (radial tire for the rear), split seat, LED taillights and new-design middle cowl & tail cowl.

5. FAZER – For Some One Life is Enough

CONCEPT

OPEN YOUR HEART TO THE TOURING SPIRIT

The Fazer, gets its DNA from the global Fazer series known for their sports touring & awesome looks. It has a "Look-at-me" appeal with the triple macho design concept giving it a concentrated form with excellent ergonomics. Fazer is beautifully contoured & has aerodynamic cowling to keep the wind blast at bay. With its comfortable riding position and seat, rider can enjoy a week end getaway or head off on a touring holiday.

Fazer has the Monocross suspension to ensure agile running performance and handling. The placement of its 'MidShip Muffler' is towards the center of the machine which gives it a good concentration of mass, exhaust efficiency and handling. Fazer has the "140/60-17" size rear radial tyre with a 60% aspect ratio which contributes to better grip and stability.

6. FZ S – Heads Don’t Turn They Bow

CONCEPT

"Stylish Macho"

FZ-S highlights the style quotient and has more flesh to flaunt with purely European international design like new colours & graphics, aerodynamic chiseled windshield, stylish & sporty carbon pattern meter console, and more aggressive looking headlight. The new FZ-S is for stylish and attention seeking Macho man.

FZ-S scores high in looks not only in its segment but beyond and is designed to satiate the need for style and fashion by riders. Etched with style and geared to today’s fashion conscious customers, FZ-S is a fusion of machismo and fashion.

FZ-S overflows with dynamism and originality. The running performance brims with thrust that overpowers all others with its unprecedented torque. Dubbed as “Lord of the Streets,” FZ-S is designed and engineered with the potential for active and even aggressive enjoyment of around-town Street riding and styling that brings pride of ownership and makes any rider look like they own the road.

With the Triple Macho concept projecting the Muscular silhouette, muscular body parts and muscular chassis, FZ -S is an object which reflects visual expression of performance on the streets.

7. FZ 16 – Lord Of Streets

CONCEPT

Street Macho

A new chapter was added with a masterpiece born in 2008 while inheriting the quality of the famous brand, the FZ16 was also born to revolutionize the era and carry out a mission. Its appearance more than any other, overflows with dynamism and originality. The running performance is brimming with thrust that overpowers all others. This quality solely belongs to YAMAHA's advanced technologies. The FZ16 takes attention away from others on the road as it makes its personality felt.

The rider's will is spread to the handle, the body and then the engine giving birth to unprecedented torque. This force is truly dynamic. Due to minute calculations and overcoming major challenges, an ultimate body balance has been produced. The agile running performance is extremely exciting. The superior performance brings riding feel, which when you ride provides

you an emotional high. Thus this is unique not only for the rider but also a source of great fascination to the onlooker. With the FZ16 you have the sensation of ruling the streets to your heart's content.

Each and every part of FZ16 has been designed with a lot of detailed attention and careful thought. This ultimate degree of perfection means even the slightest feature has not been overlooked. Only YAMAHA ensures this kind of craftsmanship. The rider and the machine share a feeling of oneness, and from different angles the impression is different. This is particularly because the finest components have been used in its precise manufacturing. The FZ16 possesses both a rough and brutish expression as well as a certain subtlety. This high quality masterpiece will without doubt become a rage for the next generation.

8. SZ S – New Innovation for New Impression

CONCEPT

Stay Ahead

The product concept behind SZ-S is “Powerful & Comfortable! stylish Commuter, powering the new SZ-S is a 4-Stroke air-cooled, SOHC single cylinder with 153cc engine that has been tuned for optimum performance that is Extra Power in the low to mid-speed range thereby ensuring a

stress-free ride on Indian roads. The bike is equipped with A I System and a large-capacity muffler with catalyzer for cleaner exhaust.

There is a large capacity 14L fuel tank which gives the ability to go Extra Mile. The long cushioned seat ensures comfortable riding position enabling a straighter back and Extra Comfort while commuting long distances. SZ-S is also equipped with some of the finest technologies like electric starter and a windscreen to cut inward air swirl, thus making a hassle free riding experience for the rider.

Adding to SZ-S charisma are the sophisticated meter panel, modern look dual tail lights, full plastic chain case (gives protection from dust & water), robust side cover and 5-spoke cast wheel.

9. SZ RR

CONCEPT

The SZ-RR is defined by the sporty styling and look of quality in its exterior design with special features like its smoked windscreen, aluminum grab-bars and 3D “SZ” emblem.

The product concept behind SZ-RR is “Powerful & Comfortable! stylish Commuter. The SZ-RR is targeted at commuter customers with their sports-oriented interests and its designed to create

the sensation of “High Speed”. The bike comes with front disc brake, tachometer and has tank protector added to the fuel tank to make it appear even larger.

Furthermore, the SZ-RR has aerodynamic spoiler that extends out boldly and is given the same silver coloring. The bike also has clear lens flasher, colored handle grip end bar, painted muffler end caps along with special graphics.

10. SS 125 – Makes The Street Your Playground

CONCEPT

Sport it Out.

Riding the wave of sports biking and adding more zing to its portfolio, India Yamaha Motor Pvt. Ltd has introduced SS 125 Packed with the advantages of 4-stroke, 125 cc, 11 PS, 5-speed bike; the Stylish and Sporty SS125 is a unique combination of sports biking and style.

Yamaha’s race-bred technology enhances the convenience in riding, agile cornering and precise braking like no other bike can. Added to this, the SS125 has been designed for substantial and overall improvement in running performance, overall sporty design and product reliability with

added features and advantages of practical functionality of commuting bikes, such as fuel economy and cost effectiveness.

SS125 showcases benchmark of 125cc styling, refinement and a free-revving 11 bhp engine with Yamaha Throttle Position Sensor (YTPS) that delivers stupendous standing acceleration. 5 speed gearbox allows the rider to make the most of a wide power band to experience excellent performance in both around-town and high-speed riding. With the Aerodynamic racy under-cowl, SS125 is ergonomically designed. Sporty Tachometer, Lowered front cowl, Lightweight Aluminum wheels and powered front Disc Brakes gives it a dynamic yet sophisticated demeanor.

11. RAY – Hello To New Life

CONCEPT

RAY - LIFE IS AN ADVENTURE

The new RAY offers best in class acceleration, easy handling & maneuverability and good fuel efficiency. It is equipped with an air-cooled 4-stroke 113cc engine with CVT (Continuous variable transmission) that boasts excellent reliability.

The engine achieves good fuel economy in the practical-use speed range, a power output characterized by smooth start-up acceleration and quick passing acceleration and more.

The body has fresh, innovative styling based on a design concept of being “Sophisticated & Dynamic,” and is full of fine touches that women will appreciate, like a seat designed with easy leg reach to the ground and ease of mounting in mind, ample storage space and easy to operate center and side stand.

MARKET CHARACTERISTICS

DEMAND SEGMENTAL CLASSIFICATION AND CHARACTERISTICS

The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various other factors, other sub segments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first two emerged as a response to demographic changes, the introduction of 4- stroke scooters has followed the imposition of stringent pollution control norms in the early 2000. Besides, these prominent sub-segments, product groups within these sub-segments have gained importance in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc. The characteristics of each of the three broad segments are discussed in Table 1.

Scooter Motorcycle MopedPrice (Rs. As in January 2013)

>45000 >40000 >25000

Stroke 2 Stroke, 4 Stroke Mainly 4 Stroke 2 StrokeEngine Capacity 90-150 100,125, >125 50-80Ignition Kick/ Electric Kick/ Electric Kick/ ElectricEngine Power (BHP) 7- 9 8 and above 2-5Weight (kg) 90-110 >110 60-80Fuel Efficiency (km per litre)

45-60 15-80 + 70-80

Load Carrying High Highest Low

SEGMENT MARKET SHARE

The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. The scooters segment was the largest till FY1998, accounting for around 42% of the two-wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market respectively, that year). However, the motorcycles segment that had witnessed high growth (since FY1994) became larger than the scooter segment in terms of market share for the first time in FY1999. Between FY1996 and 9MFY2007, the motorcycles segment more than doubled its share of the two-wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16% and 5%, respectively.

Over the past 10-15 years the demographic profile of the typical two-wheeler customer has changed. The customer is likely to be salaried and in the first job. With a younger audience, the attributes that are sought of a two-wheeler have also changed. Following the opening up of the economy and the increasing exposure levels of this new target audience, power and styling are now as important as comfort and utility.

The marketing pitch of scooters has typically emphasized reliability, price, comfort and utility across various applications. Motorcycles, on the other hand, have been traditionally positioned as vehicles of power and style, which are rugged and more durable. These features have now been complemented by the availability of new designs and technological innovations. Moreover, higher mileage offered by the executive and entry-level models has also attracted interest of two-wheeler customer. Given this market positioning of scooters and motorcycles, it is not surprising that the new set of customers has preferred motorcycles to scooters. With better ground clearance, larger wheels and better suspension offered by motorcycles, they are well positioned to capture the rising demand in rural areas where these characteristics matter most.

Scooters are perceived to be family vehicles, which offer more functional value such as broader seat, bigger storage space and easier ride. However, with the second-hand car market developing, a preference for used cars to new two-wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few years have witnessed a shift in preference towards gearless scooters (that are popular among women) within the scooters segment. Motorcycles offer higher fuel efficiency, greater acceleration and more environment- friendliness. Given the declining difference in prices of scooters and motorcycles in the past few years, the preference has shifted towards motorcycles. Besides a change in demographic profile, technology and reduction in the price difference between motorcycles and scooters, another factor that has weighed in favor of motorcycles is the high re-sale value they offer. Thus, the customer is willing to pay an up-front premium while purchasing a motorcycle in exchange for lower maintenance and a relatively higher resale value.

Manufacturers

As the following graph indicates, the Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as in FY2007. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), and LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Although the three players have dominated the market for a relative long period of time, their individual market shares have undergone a major change. Bajaj Auto was the undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its market share. HHML, which had concentrated on the motorcycle segment, was the main beneficiary, and almost doubled its market share from 20% in FY2000 to 50% in FY2007 to emerge as the market leader. TVS, on the other hand, witnessed an overall decline in market share from 22% in FY2000 to 17% FY2007. The share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it changed its product mix but has declined since then.

Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly through: licensing and technical collaboration (as in the case of Bajaj Auto and LML); and joint ventures (HHML). A third form - that is, the 100% owned subsidiary route - found favor in the early 2000s. A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the alliances of some major two-wheeler manufacturers in India. Besides the below mentioned technology alliances, Suzuki Motor Corporation has also followed the strategy of joint ventures (SMC reportedly acquired equity stake in Integra Overseas Limited for manufacturing and marketing Suzuki motorcycles in India).

Technology Tie ups of Selected Players

Nature Of Alliance Company ProductBajaj Auto Technological tie-up Kawasaki Heavy

Industries Ltd, JapanTokyo R&D Co Ltd, Japan

Motorcycles / Two-wheelers

Hero Moto Corp Technological Tie Up Honda Motor Co, Japan

Motorcycles

KEL Tie up for manufacturing and distributing

Italijet, Italy Scooters

LML Technological Tie Up Daelim Motor Co Ltd Motorcycles

With the two-wheeler market, especially the motorcycle market, becoming extremely competitive and the life cycle of products getting shorter, the ability to offer new models to meet fast changing customer preferences has become imperative. In this context, the ability to deliver newer products calls for sound technological backing and this has become one of the critical differentiating factors among companies in the domestic market. Thus, the players have increased their focus on research and development with some having indigenously developed new models as well as improved technologies to cater to the domestic market. Further, with exports being one of the thrust areas for some Indian two- wheeler companies, the Indian original equipment manufacturers (OEMs) have realized the need to upgrade their technical capabilities. These relate to three main areas: fuel economy, environmental compliance, and performance. In India, because of the cost-sensitive nature of the market, fuel efficiency had been an interest area for manufacturers.

It is not only that the OEMs are increasing their focus on in-house R&D; they also provide support to the vendors to upgrade the technology and also assist those striking technological alliances.

TRENDS IN THE TWO-WHEELER INDUSTRY

Companies raising capacity to meet the growing demand:

All the major two-wheeler manufacturers, viz. Bajaj Auto, HHML, YMIL, TYS, HMSI and others, have increased their manufacturing capacities in the recent past. Most of the players have either expanded capacity, or converted their existing capacities for scooters and mopeds into those for manufacturing motorcycles. The move has been prompted by the rapid growth reported by the motorcycles segment since FY1995.

Niche markets also witnessing intense competition:

A significant trend witnessed over the past five years is the inclination of consumers towards products with superior features and styling. Better awareness about international models has raised expectations of consumers on some key attributes, especially quality, styling, and performance. High competitive intensity has prompted players to launch vehicles with improved attributes at a price less than the competitive models. In an effort to satisfy the distinct needs of consumers, producers are identifying emerging consumer preferences and developing new models. For instance, in the motorcycles segment, motorcycles with engine capacity over 150cc, is a segment that has witnessed significant new product launches and hence, become more competitive. The indigenously launched Pulsar 150 had met with success on its launch and thereafter, a host of models have been launched in this segment by various players. While Bajaj Auto launched the Pulsars (180 cc, 200cc and 220cc) with digital twin spark technology (DTSFi) that offers a powerful engine and fuel efficiency of 125 cc models. Moreover, in the recent past, the motorcycle segment has witnessed launch of vehicles with higher engine capacity (higher than 150cc) and power (higher than 15bhp). These include models such as Bajaj Auto Eliminator and Royal Enfields Thunderbird followed by HHMLs Karizma and Yamaha R15 and other sports bikes. The products in this segment cater for style conscious consumers. Quite a few players are developing models combining features such as higher engine capacity", optimum mix of power and performance, and superior styling. However, the extent of shift to these products would depend on the positioning of such products in terms of price.

In the scooters segment, the market for plastic-bodied aromatic scooters continues to witness growth in the scenario of overall decline in scooter volumes. Higher volumes and growth are especially true for certain scooter models, such as Honda Activa, that brought in new technology (besides aromatic transmission) to further differentiate themselves. Thus, the need to differentiate and create a niche has led to companies strengthening their research and development (R&D) capabilities and reducing the development time for new models.

INCREASING FOCUS ON EXPORTS:

For the first nine months of FY2007, two-wheeler exports increased by 37% over the corresponding previous, led mainly by motorcycles even as exports of other two-wheelers were healthy. While motorcycle exports increased by 40%, scooter and moped exports increased by 29% and 27% respectively.

Motorcycle exports by Bajaj Auto, HHML and TVS have reported a robust growth in FY2007 and are expected to increase further in the medium term.

Although the Indian two-wheeler manufacturers have forayed on their own in their target export markets, there have been instances of tie-ups with the technology partners. Bajaj Autos tie-up

with Kawasaki to jointly market Bajaj products in Philippines is a case in point. Under the tie-up, M/s Kawasaki Motors Philippines Corporation has been appointed as exclusive distributors to market select Bajaj two- wheelers that include Bike, Caliber 115 and Wind 125. These vehicles are being sent to Philippines in the completely built unit (CBU) form. Other strategy of expanding international presence considered by few players is that of setting up assembly lines in select South East Asian countries either on their own or in partnership with local players. Besides, plans of select overseas technology partners to source from their Indian partners and plans of global majors to develop their Indian manufacturing unit as a sourcing hub may also lead to increase in two-wheeler exports from India.

SWOT ANALYSIS

Strengths:

Excellent branding, advertising and global distribution Yamaha Motor Corporation has over 39,000 employees One of the major brand in motorsport like MotoGP, World superbike etc Yamaha produces scooters from 50 to 500 cc, and a range of motorcycles from 50 to

1,900 cc, including cruiser, sport touring, sport, dual-sport, and off-road Extremely high Size and reach of company

Weakness:

Bikes like R15, R1 are quite expensive

Opportunity:

Two-wheeler segment is one of the most growing industries Export of bikes is limited i.e. untapped international markets

Threats

Strong competition from Indian as well as international brands Dependence on government policies and rising fuel prices Better public transport will affect two-wheeler sales

OTHER MAJOR MOTORCYCLE COMPANIES IN THE INDIAN MARKET

Hero Moto Corp

Hero MotoCorp sold highest number of two-wheelers in the calendar year 2013 in the month of May. Company has once again crossed the half million vehicle sales mark comfortably, after a long time. This sales mark, the company has now become habitual with. Honda tried to challenge Hero Motocorp, in its core competence area which is 100cc commuter bike, twice recently, but failed to do noticeable damage. Rather Hero Motocorp recorded a marginal growth of 0.22% over that of the same month of the last year and a strong growth of 11.78% over that of the last month. Hero Motorcorp is going to face intense competition as probably Honda and TVS are ready with new scooters and Bajaj Auto is set to launch a number of Discovers to shake commuter bike segment.

Hero is recognized today as one of the most successful MotorCycle Brand in the world.

Bajaj

Pune based two-wheeler manufacturer, Bajaj Auto, is trying to get its basics right by focusing on commuter bike segment with their brand Discover. To the some extent the strategy seems to be working as recently launched Discover 100T and 125ST are bringing some good volumes for the company. After an all year low sales figure in March, company has got its bearings right in the month of May. Company is steadily gaining sales volume and now they are back to their average level. From next month onwards, we hope for a serious action coming up from the manufacturer and hope that the product launches will convert in sales too. Bajaj Auto closed the month of May with rise in sales of 1.31% on MoM basis but recorded 5.32% fall in sales on YoY basis.

TVS

TVS Motors’ sales figure are always composed of bikes, scooters, mopeds and some other two-wheelers which are not available in India. So if we consider the bike and scooter sales only, then the company has fared pretty well. Scooter sales have increased after long time but are still below their expectations. Bikes sales have witnessed small downfall. But overall sales figure of the company is still falling continuously and is the lowest of this calendar year. It has decreased by 0.72% and 7.94% on MoM and YoY basis respectively.

SUZUKI

SUZUKI MOTORCYCLE INDIA PRIVATE LIMITED is a subsidiary of Suzuki Motor Corporation Suzuki Motorcycle India reported a jump of 76.13 per cent in its sales in March at 21,752 units, on the back of good response to its new products. The company had sold 12,350 units during March 2011.

Honda Motorcycles and Scooters Ltd.

Honda has kept its promise of launching a two-wheeler every quarter and hence we have seen Dream Yuga, Dream Neo, CB Trigger coming out from their camp. Now next offering coming out is likely to be a scooter, probably the 125cc one. So with these many launches in bike segment, Honda took a shot at the volume segment of the industry. But somehow it is not reflecting in their sales figures. Their individual bike sales figure and overall sales figure have fallen drastically on both MoM and YoY basis. On the other hand, in their area of expertise, the scooter market, they are dominating and gained sales figures by margin. Overall Honda’s sales graph has fallen down by 11.77% but climbed up by 3.37% on MoM and YoY basis respectively.

SALES FIGURE OF MOTORCYCLE COMPANIES IN THE INDIANMARKET

RESEARCH METHODOLOGY

RESEARCH PROBLEM AND OBJECTIVE:

Research in common parlance refers to search for knowledge. Research is an academic activity and as such it is used in a technical sense. According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggesting solutions, collecting, organizing and evaluating data, making deductions and research conclusions to determine whether they fit the formulating hypothesis.

Primary objective:

The research encompasses the primary objective of comparison and analysis of Yamaha bikes with respect to other brands prevailing in the market i.e., Hero Honda, Honda, Bajaj, TVS and Suzuki. The primary aim is to interpret the satisfaction level of customers using Yamaha’s bikes and to find out the areas in which it needs to improve to develop a better perception in the mind

of its customers. It entails as to suggest Yamaha how to become a no. 1 customer oriented company

Secondary objective:

To go in detail, the research includes the study of comparative satisfaction level of customers using different bike brands; the various areas where competitors supersede and the areas where the competitors lack.

Furthermore the research aims to find out the relative market capitalization of Yamaha in the two wheeler industry and to suggest some concrete and absolute measures to give a rise to its share in the two wheeler segment.

Research Process

• Extensive Literature Survey: Before starting the research in-depth study of the topic was done to form a clear picture of what and how research is to be done.

• Formulating the Research Problem: The next step was to find out the problem of the case. Then the problem was understood thoroughly and rephrasing the same into meaningful terms from analytical point of view. This step is of greatest importance in the entire research.

• Design of Questionnaire: A questionnaire was developed for the survey. The questionnaire is of structured type. Most of the questions were based on 5 point bipolar Liker Scale.

• Determining the Sample Size: Next step is to determine the number of to be targeted from various ages, monthly salary, and gender. So a total of 200 people were surveyed.

• Collecting the data: The data was collected from various class of people based on age, sex, income, location.

• Analysis of Data: The data collected from various people was segregated into various categories in order to analyze it. Analysis was done based on more than 22 different parameters.

• Generalization and Interpretation: Data was tested and upheld several times, and then generalizations were drawn from the analysis.

• Preparation for the report: Lastly report about the research is made.

Research Design:

• Exploratory Research design

Focus Group Primary data analysis

Collection of Data:

• Qualitative Data

Survey Questionnaires

Sampling:

• Non-Probability Sampling

Judgmental Sampling Simple Random

Sample Design:

Sampling may be defined as the selection of the some part of an aggregate or totality on the basis of which a judgment or interference about the aggregate or totality is made. It is the process of obtaining information about entire population by examining only a part of it in which generalizations or influences are drawn based on the sample about the parameter of population from which samples are taken.

Sample Size:

A total of 200 people have been questioned for the purpose of filling up the questionnaire.

• Details of the Survey Conducted

Sample Size 200Target Population 20-25 years

25-30 years30 and above

Area Covered Delhi/ New Delhi, Noida & Greater Noida& Semi Urban and Rural Areas

Sampling Judgmental simple RandomType of Questionnaire Structure 5 point bipolar liker scaleType of Questions Close Ended Questions

SCOPE OF STUDY

The research was carried out to find factors which influence customer satisfaction level to maximum level. The study projects that customer satisfaction level change with change in various factors like during sales evaluation, during delivery of the vehicle and after sales evaluation. This research is an attempt to provide feedback to Motorcycle manufacturer Yamaha Motors India Ltd. so that they can bring about changes in various departments of their organization which will help them in becoming Number 1 motorcycle brand in India.

For instance during research factors such as technology, maintenance, looks, style, brand image, behavior of dealers, timely delivery of documents and bike and proper information about the product were considered.

This research would give necessary details to Yamaha motors so that it could know the various factors that affect customer satisfaction level and then initiate appropriate changes to make it Number 1 motorcycle brand in India.

DATA COLLECTION AND INTERPRETATION

DATA COLLECTION AND INTERPRETATION

The research required collection of first hand primary data from the respondents. The respondents necessarily were to be bike users. They were exposed to a questionnaire containing different parameters for the evaluation of their satisfaction level. The broad parameters were:

• During sales evaluation.

• During vehicle delivery.

• After sales evaluation.

It was expected that the respondents were honest while answering the questions with proper consideration of the brand image of the bike they were currently using. The questionnaire contained liker scaling to rate various parameters.

The respondents were so selected that they were representative of various segments of bike users. The respondents were questioned on:

• Petrol pumps

• Service stations

• Educational institutes

• Vehicle showrooms

• Malls

• Residential areas and

• Factories

The results and responses were recorded on a SPSS data viewer (Statistical Package for Social Sciences) parameters were defined on a SPSS variable viewer. The next step was to run the SPSS and acquire specific results pertaining to the research done.

The findings and analysis complementing to results are discussed in the chapters to follow.

GRAPHICAL DATA ANALYSIS

DATA ANALYSIS

The data analysis portion is the backbone of any primary or secondary research. There are various tools of data analysis is that helps the researcher to interpret his data into final results.

The data collected in this research was analyzed using he most effective tool of market research i.e., SPSS (statistical package for social sciences). The parameters were set up giving preference to non-demographic factors more than demographic factors. The data was analyzed on the total of 20 parameters as mentioned below:

Customer’s age Marital status Profession Education

Attitude of dealer Explanation of product features by the dealer. Sales terms and conditions. Product display in the showroom Cleanliness in showroom and service station Atmosphere Cleanliness of purchased bike Time taken in delivery Explanation of bike functions PDI and checks made Time taken in documentation Salesman follow up Reminder of first service Action to complains Replacement condition

GRAPHICAL DATA INTERPRETATION

1. Which age group of customers prefer bike most?

Age Group 18-25 25-35 35-45 About 45

Percentage 65 % 20% 10% 5%

18-25 25-35 35-45 About 450

10

20

30

40

50

60

70

Percentage of customers who prefer bike most

Percentage of customers who prefer bike most

Interpretations :

65% age group of 18-25 preferred a motor bike, 20% of age group 25-35, 10% of age group of 35-45 and the rest of age group above 45 years old.

2. How do professionals/occupational people show their preference towards motor bike ?

Student 45 %

Service 40 %

Business 5 %

Self Employed 5 %

Others 5 %

Student45%

Service40%

Business5%

Self Employed5%

Others5%

Preferance of bike

Interpretation:

Occupationally and professional the motor bike has been used i.e., 45 % preferred by student, in the service level it is used 40% and the rest of used in business, self employed and for other purposes used.

3. How do income wise customers show their interest towards motor bike?

10000-15000 35 %

15000-20000 40 %

20000-50000 15 %

50000-100000 5 %

Above one lack 5 %

10000-1500035%

15000-2000040%

20000-5000015%

50000-1000005%

Above 1 Lac5%

Income wise Interest of Customers

Interpretation :

In the base of economically, it is used in the base of income i.e., 35 % of income group 10,000 – 15,000, 40 % of 15000-20000, 15 % of income group of 20,000-50000 and rest of used in the rarely above income of 50000.

4. Which company’s bikes customer would like to purchase ?

Hero Honda 41%

BAJAJ 32%

Yamaha 13%

TVS 3%

Honda 9%

Suzuki 2%

Hero 41%

Bajaj32%

Yamaha13%

TVS3%

Honda9%

Suzuki2%

Customer Preferance for bike's Company

Interpretation :

40 % motor Bike Company and its models liked by people of Hero Honda, second position of Bajaj and third position of Yamaha and rest of TVS and other companies.

5. Which features of a bike customer would like to prefer most while purchasing ?

Speed 40 %

Power/BHP 5 %

Mileage 30 %

Design 5 %

Brand 5 %

Pick up 2 %

Color 5 %

Comfort 8 %

Speed40%

Power/BHP5%

Mileage30%

Design5%

Brand5%

Pick up2%

Color5%

Comfort8%

Feature of bike that Customer search for

Interpretation :

65% age group of 18-25 preferred a motor bike, 20% of age group 25-35, 10 % of age group of 35-45 and the rest of age groups above 45 years old.

6. How do people come to know about bikes ?

TV 35 %

Newspaper 15 %

Friend 12 %

Product Show 10 %

Family 8 %

Test Ride 2 %

Internet 10 %

Hoarding 8 %

TV35%

Newspaper15%Friend

12%

Product Show10%

Family8%

Test Ride2%

Internet10%

Hoarding8%

How do people come to Know about Bikes

Interpretation :

The aware and know about motor bike products about 35 % by TV channels, 15 5 newspapers / magazines, 12 % by friends, 10 % by product show, 10 % through internet, 8 % by family and others through test riding and hoardings.

7. Why did you purchase a bike ?

Brand value 80 %

Design 5 %

Publicity 14 %

Scheme 0 %

Gift 1 %

Brand Value80%

Design5%

Publicity14%

Gift1%

Why did people purchases bike

Interpretation :

The bike has purchased according to brand value, design, publicity and others base. The common factor, in the present firstly brand value is the main factor i.e. 80 % people has been purchased any motor bike and 14 5 has been purchased having the main factor of publicity.

8. How was your experience after using the bike ?

Good 20 %

Excellent 75 %

Satisfactory 5 %

Not Good 0 %

Good20%

Excellent75%

Satisfactory5%

Experience after using Bike

Interpretation :

In the most preferred through experience i.e., the good, and excellence and satisfactory based. In the survey it has been found that 75 % excellence and 20 % has been telling about with good theme.

9. Where does customer want the servicing of his motor bike to be done ?

Showroom 85 %

Road Mechanic 15 %

Showroom85%

Road Mechanic

15%

Customer preferance for bike servicing

Interpretation :

The main important thing that the motor bike servicing factors where it will be better do for that. 95 % customer’s attitude towards servicing of motor bike in showroom and rest of road mechanic.

10. Do customers get full value of money for the bike they purchased ?

Yes 100 %

No 0 %

Yes100%

Customers got full value of money or not?

Interpretation :

100 % customers attitude has been found towards full value money have taken over all the products.

11. Are customers satisfied with the performance of there bikes ?

Yes 99 %

No 1 %

Yes100%

No1%

Customer Satisfaction towards Bikes Performance

Interpretation :

Approximately 100 % customers satisfaction level of motor bike products and a rarely can say that no comments about it.

\

12. Which type of brakes is mostly preferred by the customers ?

Disk Brake 85 %

Drum Brake 15 %

Disk Brakes85%

Drum Brakes15%

Brakes preferred by customers

Interpretation :

The main factor is used for customer favorably through disc brake and drum brake. It is 85 % used disc brake and rest of used drum brake.

13. Which types of wheels are mostly preferred by the customers ?

Spoke Wheel 20 %

Alloy Wheel 80 %

Spoke Wheel20%

Alloy Wheel80%

Wheels preferred by Customers

Interpretation :

The main attraction through spoke wheels and alloy wheels i.e., 80 % customers preferred to alloys wheels and rest of preferred to spoke wheels.

14. Are customers satisfied with the dealer services of their bikes?

Extremely Well 45 %

Very Well 50 %

Average Not Very Well

5 %

Not Well at All 0 %

Extremely Well Very Well Average Not very well

Not well at all0%5%

10%15%20%25%30%35%40%45%50%

Customer Satisfaction with the dealer services of their Bikes

Customer Satisfaction with the dealer services of their Bikes

Interpretation :

Yes, 50 % customers has been highlight about brands and can have very well whenever 45 % extremely well and rest of average.

FINDINGS OF RESEARCH

The chart represents the analysis of the covered brands on the basis of different

BRANDS Hero Bajaj Honda TVS Suzuki Yamaha

Parameters

Gender Male Male Male Male Male Male

MaritalStatus

Unmarried

Unmarried

Unmarried

Unmarried

Married Unmarried

Profession Salaried Salaried Salaried Salaried Salaried Salaried

Age 21-25 21-25 21-25 21-25 21-25 26-30

Education Graduate Graduate Graduate Graduate Graduate Graduate

Dealer’sattitude

Good Good Good Good Good Good

Explaination of product feature

Good Good Good Good Good Average

Sales terms and Condition

Very Good

Good Good Average Good Average

Product display Good Good Good Good Good Good

Cleanliness Good Good Good Good Good Good

Atmosphere Good Good Good Good Average Good

Cleanliness of purchased Bike

Good Good Good Good Good Good

Timely delivery of bike

Very Good

Good Very Good

Good Good Good

Explaination of bike Function

Good Good Good Average Average Good

PDI and Check Good Good Good Good Average Average

Time taken in Documentation

Good Good Good Good Average Good

Salesman follow up

Average Average Good Average Average Good

Remainder of first service

Good Poor Average Poor Average Good

Prompt action to complaint

Good Good Good Good Average Good

Replacement Might or might not

Might or might

Probably Buy

Might or might

Might or might not

Might or might not buy

buy not buy not buy buy

Interpretation :

Out of the six brands covered the respondents of Suzuki are generally married while other brands have unmarried customers.

The average age of a Yamaha customer comes out to be 26-30 years as compared to others brands average customers age which is 21 – 25 years.

When explanation of product features comes into view; only Yamaha customers rank them average; others says it’s good.

Hero Honda and Honda are most favored brands when timely delivery of bike comes into picture.

Suzuki customers says that they have to run after their dealers for the documentation of the delivery done while others say they are satisfied.

Yamaha is best when sales follow up after delivery is concerned.

The most important point that comes up after analysis is that almost every brand of customer wants a change but Yamaha customers are generally loyal to their brand.

To conclude it can be said that almost every brand lacks in terms of sales follow up. So this is the area where Yamaha can focus and position its bikes.

Secondly, there is huge market for bikes because almost every bike user wants to change its bike because of some or the other reason.

Lastly, Yamaha has a good market image but a minimum number of users are new. The most raring point is that Yamaha in spite of having a low market share is able to retain most of its customers.

GAPS IN LITERATURE

The research has showed following gaps

Average age - 26-30 years. The average age of Yamaha bike users was assumed to be 21-25 years. But from the survey it was found that the average age of Yamaha bike users lie between 26-30 years of age.

Profession- Salaried; yound executives. Before research students and young executives were considered to be the main customer of Yamaha. But our research has shown that the salaried class is the main customer of Yamaha.

From the research it can be easily inferred that the Yamaha customers are the most loyal customers as maximum number of Yamaha bike users are those who have already used Yamaha bikes. While the number of new customers are much less than that of other brands

Competitive advantage –

Speed Power Pick-up BHP

SCOPE OF FURTHER RESEARCH

There are various conclusions that can be arrived at regarding the Indian two wheeler industry after the execution of this research. Still the research cannot be considered as totally exhaustive. There are various areas that are beyond the scope of this research. This arises the need and scope of further research in this area. Some of the possible arenas can be as follows :

Forecasting the market for two wheelers industry in coming 5 years. Study of consumer behaviour of Indian two wheeler industries. Developing a model for success of a particular brand on the basis of arrived conclusions. Developing a model of bike on the basis of responses of the customers to stabilize in the

market; determining the optimum combination of mileage and price.

PROBLEM IDENTIFICATION

PROBLEMS IN YAMAHA

Yamaha bikes have a poor mileage it needs to create a positive image in the mind of its customers.

They lack style and innovation. Yamaha lacks in aggressive marketing strategy. Indian customers are mainly commuters and not bikers. Yamaha has no raring 150cc above range bike. People having a halo image of RX-100. Yamaha has lost trust among Indian consumers by producing bikes YBX, Fazer and

Libero. High maintenance cost. Dearer accessories. Yamaha has no vulnerable bike to compete with high mileage bikes of TVS and Hero

Honda.

CONCLUSION

From the research following facts about Indian two wheeler industries has been inferred :

Age group – 21-35 years

Profession – Mostly salaried

Customers are generally satisfied with attirude of dealers at the time of sales. Every brand of bikes has a poor response in terms of sales follow up. Hero Honda is the most famous brand. Favored bikes in today’s date are – Hunk Pulsar Apache Customers stress on quality as compliments to looks. Mileage is what everybody wants. In fact, the dealership of Delhi / New Delhi is found good having with customer’s

attitude and behaviour to Dealership valuation other than found of Noida then Greater Noida.

SUGGESTIONS

INTRODUCTION OF NEW BRANDS – Yamaha should introduce new bikes in the market. It will definitely make the market oligopolistic, but will improve the condition of Yamaha.

BIKE IN 150 CC SEGMENT – Yamaha does not have any successful bike in these segments. Yamaha needs to introduce a bike in this segment which can compete with the other brands on pricem power, pick-up,mileage and style.

INTEGRATION OF MARKETING AND R&D DEPARTMENT – Yamaha has got best R&D facilites and international design of sports bikes. It needs to integrate its efforts together with other department more specifically marketing wing and try to give customers what they want.

It has been found from the research that Yamaha has got the most loyal customers but when it comes to Yamaha, people still talk about RX – 100. Yamaha should develop a bike like RX-100, and this time mileage and style should also be considered.

360 degree marketing approach and need to follow aggressive promotional campaigns to grab a larger piece of pie in the motorcycle segment.

Focus should be on teenagers, young and executives as they represent largest portion of the bike user segment.

Provide better sales follow up which almost every brands lacks – the research has showed that the bike users of all brands are dissatisfied with their after sales experience’ this is a big loop hole which Yamaha can use to improve its brand image and to gain more customers.

Indian customers generally do not use bike for fashion but a necessity so mileage should be a concern, so it needs to create a better image in mind of its customers regarding mileage.

LIMITATIONS

Research was limited to only two wheeler motorcycle industry.

Research was restricted to Noida only.

Since it is limited only to two wheeler motorcycle industry so the entire customer satisfaction level while and after purchasing a product cannot be projected on this research.

Sometimes it was very difficult to get the necessary information as filling the questionaire required time.

Research could have been wider in scope if along with customer satisfaction level consumer behaviour pattern was also studied.

ANNEXURE

Questionnaire

1. Which age group of customer prefer bike most ?

a. 18-25 b. 25-35 c. 35-45 d. about 45

2. How do professionals / occupational people show there preference towards motor bike ?

a. Student b. Service c. Business d. Self employed e. others

3. How do income wise customers show their interest towards motor bike ?

a. 10000-15000 b. 15000-20000 c. 20000-50000d. 50000-100000 e. Above 1 lack

4. Which Company’s bikes customer would like to purchase ?

a. Hero Honda b. Bajaj c. Yamaha d. TVS e. Honda

5. Which features of a bike customer would like to prefer most while purchasing ?

a. Speed b. Power / BHP c. Mileage d. Design e. Brand f. Pick-up g. Color h . Comfort

6. How do people come to know about bikes ?

a. TV b. Newspaper c. Friend d. product Show e. Family f. Test Ride g. Internet h. Hoarding

7. Why did you purchase a bike ?

a. Brand Value b. Design c. Publicity d. Scheme e. Gift

8. How was your experience after using the bike ?

a. Good b. Excellent c. Satisfactory d. Not Good

9. Where do customers want the servicing of his motor bike to be done ?

a. Show Room b. Road Mechanics

10. Do customer get full value of money for the bike they purchased ?

a. Yes b. No

11. Are customers satisfied with the performance of there bikes ?

a. Yes b. No

12. Which type of brakes are mostly preferred by the customers ?

a. Disk Brake b. Drum Brake

13. Which types of wheels are mostly preferred by the customers ?

a. Spoke Wheel b. Alloy Wheel

14. Are customers satisfied with the dealer services of their bikes ?

a. Extremely Well b. Very Well c. Average Well d. Not Well At All

CUSTOMER SATISFACTORY SURVEY

CUSTOMER NAME-- Town:

Phone number………………………… State:

Email id………………………………..

Address of the customer.......................................................................................

…………………………………………………………………………………..

Name of the freelancer: ………………………………………………………...

A. Current motorbike, do you think you would buy from the same dealer ?( Please tick )

a. Definitely buy b. probably buy c. Might or might not buyd. Probably not buy e. definitely not buy

Reasons……………………………………………………………………...

B. If you planning to buy a new bike which brands it would be ?

…………………………………………………………………………………..

C. If not same company then Why ?

………………………………………………………………………………

………………………………………………………………………………

D. If you think of buying a Yamaha bike in future which features will make you buy ?

a. Mileage b. Style c. Color d. Power e. Brandf. Price g. Service h. BHP i. Pick up j. Quality

k. All purpose l. Maneuverability m. Speed n. Reliability

o. Riding comfort

BIBLIOGRAPHY

BOOKS

Kotler philip, Keller Lane Kvin “Marketing management” 12th edition Pearson Education P.No. 117,118,121.

Ramaswamy V.S., Namakumari S. “Marketing Management ” 3rd edition 2006 Macmillian Publications. P.No. 311,312

Kumar Arun, Minakshi N. “Marketing Management” Vikash publication 1st edition 2006 P.No 213,214

Kotler Philip, Koshy Abraham, “Marketing Management” 13th Edition Pearson Education P.No. 115,116,120.

WEBSITES

www.indianauto.com

www.yamaha-motors-india.com

www.bikes.com

Software

MS Word

MS Paint