.Customer no.

1
They put customers first in everything they do. They take decisions keeping
the customer in mind.
Challenging Spirit
They strive for excellence in everything they do and in the quality of goods &
services they provide. They work hard to achieve what they commit & achieve
results faster than their competitors and they never give up.
Team-work
They work cohesively with their colleagues as a multi-cultural team built on
trust, respect, understanding & mutual co-operation. Everyone's contribution is
equally important for their success.
Frank & Fair Organization
They are honest, sincere, open minded, fair & transparent in their dealings.
They actively listen to others and participate in healthy & frank discussions to
achieve the organization's goals/objectives.
India Yamaha Motor Limited, known for its strong focus on the urban market
in the country, has decided to go for a strategic shift in its business move.
The two-wheeler player which is only a fringe player in the country's rural
market, which accounts for only 15% of its overall sales, intends to tap this
market in a big way.
YBR 110, the latest bike from the Yamaha stable to have been launched in
India, will target the rural markets. As of that time, Yamaha Crux is the
company's best seller in the rural market due to its good quality, long life
engine and high mileage.
Rural markets are the growth drivers for any company and they are no
different. Yamaha has already penetrated into the entry level segment and
has been successful in all its ventures. To tap this potential segment, they are
focusing on increasing their network strength in tier-2 and tier-3 cities and
increasing their sub-dealers in rural areas,, national business head, India
Yamaha Motor Limited told Business Standard."Yamaha Crux is doing very
well in the domestic and overseas market. Adding to this is their new launch
YBR 110 which will definitely target the rural markets, add to their sales
numbers and increase their presence in the rural areas. They expect to grow
more and improve their performance in rural India,
Yamaha is wary of competition from the well entrenched players but hopes to
counter the competition through its unique product offering.
"They dont see any direct competition between Yamahas offerings and other
companies. The Indian biking market is undergoing a complete transformation
in terms of both product offering and customer preferences. Today, the Indian
biker is driven by technology and style and Yamaha products perfectly fit the
bill.
Though Yamaha has a 12% market share in the deluxe bike segment, it is still
a marginal player in the country's two-wheeler market with a meagre share of
3.5%.
Yamaha Motor Corp will invest about $200 million in its Indian unit over three
years as it completes a third plant, which will ramp up capacity to 1 million
units.
"For the coming three years, they think they will invest 7-8 billion rupees
($178-203 million)," Takashi Kajikawa, president and CEO of Yamaha Motor,
told a news conference at the India Auto Expo.
"They're looking at getting double-digit growth. They should touch 10%
(market share) by 2010.
By end-2010, Yamaha will complete its third plant in India, on the outskirts of
New Delhi, and raise capacity to 1 million bikes annually.
The company is targeting a share of 10% by the end of 2012.
Yamaha has seen a fall in its sales in India, with April-December 2007 figures
half of those for the corresponding period of 2006, part of a general decline in
bike sales in India brought about by rising financing costs.
They were focussing on rural market but by rising financing costs the sales
and demand has seen a great fall. Their products enter in the declining stage.
Product Declining Stage
A reduction in product demand and sales occurs either slowly or rapidly,
depending on the type of product provided to consumers, thus causing the
product to enter the decline stage. A Sale decline may be due to technological
advances, shifts in consumer tastes, or increased competition. Management
can choose to continue to market the product (also known as maintaining the
product), harvesting the product by reducing overhead costs such as R&D in
the hopes of continued sales of the product. As this the demand and sales of
Yamaha bikes were reducing in India because people wants premium and
deluxe products and Yamaha emphasis on value for money. So the sales of
Yamaha bikes were drastically declining in Indian market .
Sales always decline in this stage. Understanding the decline stage will help
us to keep our product producing sales longer.
In the decline stage of the marketing product development cycle, product
owners lower or discontinue marketing efforts and expenses. The trick is for
lower marketing efforts of them while competitors discontinue theirs.
Similarly, if we continue to sell our product while our competitors pull their
products from the market, we can squeeze out the last few sales for our
product.
Marketing Product Life Cycle
Why Sales Decline
Sales decline during this stage of the marketing product life cycle because:
the market has become saturated,
the technology has become obsolete, or
the trend creating the demand has ended.
The result is that unless our product is perishable or consumable, few
customers still want or need our product. Market segmentation can enable us
to find those few customers and to out-market our competitors to get those
customers purchases.
Marketing Product Life Cycle
Using Marketing Research
Can Slow Decline
To continue making enough sales to earn a profit, we need to use market
research to determine:
how much you need to lower prices,
which distribution outlets we should use at this stage, and
how our other products can benefit from brand marketing from our declining
product.
Just as we want our child to have a long life and live well into senior years, we
want our product to extend its life through the decline stage of the marketing
product life cycle.
Market segmentation can provide extended life to our product by revealing the
last remnants of customers needing the product and by discovering new uses
for our product. So we can increase our profits through this final stage of the
marketing product life cycle.
Product Development
Meaning- The overall process of strategy, organization, concept generation,
product and marketing plan creation and evaluation, and commercialization of
a new product
Innovative new products are the fuel for the most powerful growth engine we
can connect to.
If we decide to develop new products as part of our growth plan, we're in good
company.
New product development can be described as a five-stage process,
beginning with generating ideas and progressing to marketing completed
products. In between are processes where we evaluate and screen product
ideas, take steps to protect your ideas, and finalize design in an R&D stage.
Following are details on each stage:
Generating ideas -Generating ideas consists of two parts: creating an idea
and developing it for commercial sale. There are many good techniques for
idea creation, including brainstorming, random association and even
daydreaming. We may want to generate a long list of ideas and then whittle
them down to a very few that appear to have commercial appeal.
Evaluating and screening product ideas- Everybody likes their own ideas, but
that doesn't mean others will. When we are evaluating ideas for their potential,
it's important to get objective opinions. For help with technical issues, many
companies take their ideas to testing laboratories, engineering consultants,
product development firms, and university and college technical testing
services. When it comes to evaluating an idea's commercial potential, many
entrepreneurs use the Preliminary Innovation Evaluation System (PIES)
technique. This is a formal methodology for assessing the commercial
potential of inventions and innovations.
Protecting your ideas- If we think we've come up with a valuable idea for a
new product, we should take steps to protect it. Most people who want to
protect ideas think first of patents. There are good reasons for this. For one
thing, we will find it difficult to license our idea to other companies, should we
wish to do so, without patent protection. However, getting a patent is a
lengthy, complicated process, and one we shouldn't embark on without
professional help; this makes the process expensive. If we wish to pursue a
patent for our ideas, contact a registered patent attorney or patent agent.
Many firms choose to protect ideas using trade secrecy. This is simply a
matter of keeping knowledge of their ideas, designs, processes, techniques or
any other unique component of their creation limited to thereself or a small
group of people. Most trade secrets are in the areas of chemical formulas,
factory equipment, and machines and manufacturing processes. The formula
for Coca-Cola is one of the best-recognized and most successful trade
secrets.
Finalizing design research and development- Research and development is
necessary for refining most designs for new products and services. As the
owner of a growing company, we are in a good position when it comes to this
stage. Most independent inventors don't have the resources to pay for this
costly and often protracted stage of product introduction. Most lenders and
investors are trapped by a Catch-22 mentality that makes them reluctant to
invest in ideas until after they're proven viable in the marketplace. If we
believe in our idea, we can be the first to market.
R&D consists of producing prototypes, testing them for usability and other
features, and refining the design until we wind up with something we think we
can make and sell for a profit. This may involve test-marketing, beta testing,
analysis of marketing plans and sales projections, cost studies, and more. As
the last step before you commit to rolling your product out, R&D is perhaps
the most important step of all.
Promoting and marketing your product- Now that we have a ready-for-sale
product, it's time to promote, market and distribute it. Many of the rules that
apply to existing products also apply to promoting, marketing and distributing
new products. However, new products have some additional wrinkles. For
instance, our promotion will probably consist of a larger amount of customer
education, since we will be offering them something they have never seen
before. Our marketing may have to be broader than the niche efforts we've
used in the past because, odds are, we'll be a little unsure about the actual
market out there. Finally, we may need to test some completely new
distribution channels until we find the right place to sell our product.
Strategic Marketing Tools
Our tools are organized under our 5-Step Planning process. See down to find
the step and tool that interests us most.
The Market To Win Five Step Planning Process.
Key Tasks
1.Pre-planning
3b. Define the Key Challenges
3a. Segment the Market
3d. Define the Value Proposition
3c. Target the Best Segments
3.Formulate Marketing Strategy
2b. Internal Business Audit
2a. External Market Audit
1b. Launch the Work
1a. Plan the Work
2.Undertake Marketing Audit
4. Complete the Marketing Plan
5. Implement & Review
1. Pre-planning- The pre planning by Yamaha is that they pre-prepare
themselves for the this declining stage of their bikes. They already made new
bikes from their own product innovations for that drastic situation of declining
and just need the right time to launch them.
2. Marketing audit/research-They did market research in advance that their
products are declining because of rising financing cost. As they were
focussing rural market and rising financing cost has affects the sales of their
products. They also research that the taste of consumers are also changed,
where their product was declining because of rising financing cost on the
other side consumer are ready to buy premium and deluxe bikes. Business for
premium and deluxe bikes was increased.
3. Market strategy- The market strategy Yamaha used that time they introduce
their right products as per market demand. They focus on premium bikes
segment that time. The key challenge was rising financing cost. They
understand that the price will be not an issue for the premium and deluxe
segment customers so the rising financing cost will not effect the sales and
demand of their products and they were right.
4. Market plan- Yamaha uses right market plan with right market audit and
with their right products for that time and got success for firm.
5. Implemented & review- They implemented the right market plan in that
declining stage of their products and in review they got success for their
brand, products and maintain their image in motor biking industry.
It is a sad fact that many marketing plans do not get implemented well. There
are many possible reasons for this but certainly poor project and change
management is a key one. If we do the pre-planning work well, there is more
chance the Marketing Plan will be accepted and implemented as Yamaha
done.
Re-launch or reposition
One strategy is the re-launch and re-position mature brands. Yamaha doesnt
use this strategy because the taste of consumers is also changed.
Product Innovation
Product innovation is another strategy. They uses this strategy they innovate
with their own products like Yamaha R1 and introduce their new products.
The firm launched four new models in 2008. Two of them was of 125 cc and
launched in February 2008. The other two, both of 150 cc, came in July and in
November.
Three new Yamaha Bikes for India in 2008
Globally, Yamaha Motorcycles has a performance oriented brand image and
is known for their technological excellence. But thats not the case for Yamaha
India with their damp and not so exciting current line-up of bikes. Realizing the
power and growth potential of the Indian 2-wheeler market, Yamaha is bent
on re-establishing themselves in India, only this time aiming for the brand
image rather than going after mass market sales. As part of their strategy YMI
recently launched the world class YZF R1 and MT01, furthermore Yamaha
launched 3 new bikes in India in 2008.
Yamaha YZF-R15
2008 Yamaha yzf r15 India
Sports oriented, Yamaha YZF R15 is a track ready, made for India bike
inheriting from the Yamaha R1. The new single cylinder, 4-stroke, 150cc
engine has 4-valves, is liquid cooled and have Fuel Injection. The bike also
has front and rear disc brakes. R15 launched in India in 2008. The power
output was around 18 bhp.
Yamaha FZ (150)
Yamaha fz 150 India 2008
IMO The best looking among the 3, the Yamaha FZ is a mean-looking naked
street bike, again made for India inheriting from the European FZ1. FZ share
R15s 150cc single cylinder engine but have air-cooled.Yamaha FZ 150 was
also launched in India 2008.
Yamaha Gladiator Type SS / RS
Yamaha Gladiator 2008 SS & RS India
Yamaha Gladiator was available in two new variants Type SS (Stylish &
Sporty) & Type RS (Racing Sports) and these bikes have the 125 cc engine
block. Yamaha says SS & RS have 26 improved features to make them
dynamic and best performing bikes in their class. Gladiator Type SS / RS was
also launched in India by the end of February 2008.
Indian consumers got the feel of the superbikes mainly from the movie Dhoom
(thanks to John Abrahams Hayabusa) and after that theyve been witnessing
a regular growth in both, the sales and options (superbikes) available in India.
Sources in the industry confirm that almost 600 superbikes are imported every
year, which includes those imported by the company and those that come
from indirect routes.
Apart from growing in the domestic market, Yamaha is also looking to scale
up its exports.
"They are very hopeful of increasing exports from India. In 2009 and so far in
2010, they have received good response and orders from the overseas
markets. they export Gladiator Type SS, FZ16, YZF-R15, Crux, Enticer, Alba,
G5 to countries like Colombia, Sri Lanka, Indonesia, Kenya, Bangladesh,
Philippines. They definitely look forward to increase their presence in the
overseas market and grow in terms of exports.
Yamaha plans to capture larger market share in India. It is aiming for a 20%
share in the Indian bike segment especially in deluxe and premium range
products. "They have been receiving an overwhelming response for their
premium and deluxe segment models. They have clocked a robust
performance so far and should achieve a market share of 20% in the deluxe
and premium segments.
Currently Yamaha has 3.5% market share in India but the sales are picking up
very fast and the company foresees a robust growth in coming years. By end
of 2012, it intends to have at least 10-12% market share in the country. "They
expect to grow 40% in 2010 and 30% in 2011. Their main growth will be from
the FZ series.
Premium products like YZF-R15 and FZ-15 continue to showcase strong
demand and robust sales. In the deluxe segment, they have succeeded in
garnering a market share of 12%.
SWOT ANALYSIS
STRENGTH
Good quality
Long life engine
High mileage
Unique product offering
Technology
Style
Brand
WEAKNESS
Wrong focus segment
Emphasis on value for money
Wrong trend
OPPURTUNITY
Innovation
Increased product quality
Product for rural areas
Big market (domestically & globaly)
THREAT
Competition
Strength
Yamaha has good quality motor bikes. Their bikes engine are long lasting and
fuel efficients. They uses Japanese technology for their products. They offers
unique products to market. They have different styles of product and they are
known for their brand image in motor biking industry.
Weakness
They were previously focus on wrong segments. They emphasis on
manufacturing value for money products. The trend on focusing on rural
industry was wrong.
Opportunity
They have innovated opportunity to launch their new products. They have
increased quality products like R15 and FZ16. They have opportunity to rule
for urban as well as rural areas. They have big market opportunity domestic
and internationaly.
Threat
Yamaha have lots of threat from their competition. Yamaha is wary of
competition from the well entrenched players but hopes to counter the
competition through its unique product offering.
The Seven Ps of Marketing
The basic Four P's of Marketing
Product
This is the most important thing in the mix, the physical product or the service
that the entity is offering for sale to the public. We will need to market this to
the customers by telling them the unique features and benefits the product
has to offer as Yamaha did most of the time when its value for money they
emphasis on that, when its about looks and image they shows that as well.
Price
This is the price or amount that the customer needs to giveaway in exchange
of the product or service we are offering. Marketing strategy will need to
ensure that people will get the perceived value as greater than the price they
will need to giveaway. Yamaha give the price of normal bikes and gave the
looks of superbikes.
Placement
Placement or distribution, we will need to spell out where the product or
service is available. This may either be online or offline, we will need to inform
the public where the products may be available. Yamaha places their products
in showrooms as well their full descriptive images online.
Promotion
We will need to promote the product or service whether online of offline.
Online marketing makes it cheaper to conduct promotions and reach as many
people as possible. Yamaha mostly uses brand ambassadors for the products
and also promotes in motoracing.
The next three P's
People
In order for any marketing activity to be effective, to will need to train and
motivate the people to do their job. The people that delivers the product or
service and those that come in between the customer and the manufacturer
needs to know their job for the strategy to work. People may also refer to the
customers who will need to buy our products, they are very important to be
considered in the development of our marketing strategy. Yamaha trained
their people on routine intervals so they can get the best out of them.
Process
Customer satisfaction is one of the most important roles of marketing. If we
can follow the process of delivering high quality service or products to the
customers, Our marketing efforts will never be wasted. As Yamaha did uses
the process and deliver the right product on right time.
Physical evidence
Online, it is difficult for the customer to know how the product is going to
benefit them. Thus, we will need to create an element by which the customer
will be able to feel, taste and smell the product or experience the service. We
can do reports and articles that will excite the customers about the product
and the service. Yamaha shows the physical evidence of their products in
commercials, movies and road shows.
Conclusions
In conclusion, the success of Yamaha is inseparable with the scientific
business strategy. The business strategy is a general concept. It includes two
indispensable elements called competitive strategy and marketing strategies
as well as the concept of the business strategy. The strategic concept of
Yamaha is to take the demand-side strategy. Yamaha subdivides the whole
market into several objective markets according to the researches about the
partialities of different individuals. And then different types of motor bikes are
put into the market aimed at attracting different consumer groups. The
competitive strategy of Yamaha is to improve the innovative ability to win the
competitive advantage. Strong technological innovation ability makes Yamaha
stand in the most forward position of motor bikes industry all the time, and
characterized this brand by a special vitality. And the marketing mix of
Yamaha is to use the integrated marketing strategy including product, price,
promotion and place. It values the construction of a brand, the orientation of
its products and pays a lot of attention to technology improvement. It
increases the sales through sensitive advertisement, presentation to the
celebrities and large-scale entertainment.
Expectations from the Course Module:
When I started this assignment, I had a perception that marketing is identical
to sales. Being from commerce back round I also thought that marketing is
conflicting to financial studies. However now I can analyze that marketing is a
social science.
Through the interactive lectures I have learnt that marketing brings together all
the elements of management together, namely finance, operations and
human resource management.
Overall the course module has geared me up as a person who now has
managerial skills in all types of verticals.
Learning Outcome:
I would like to start my learning outcomes from the same fact that being from
the Commerce background and always took Marketing as a very spendthrift
department and always thought they are trying to put up their Budgets and
Expenditures very high and would not allow them to get around to utilize the
Budget as they wished or planned. I was always critical of the plans of the
Marketing team in the company where I work and would always argue and win
back as much pounds as I could to cut on their lucrative Budgetary proposals.
But after the Tutor brought in the various Marketing concepts like Situation
Analysis, Branding, Segmentation, Marketing Mix, etc., were very clear.
The situational analysis taught me how to use the tools of SWOT, PESTLE,
the five competitive forces of Michael Porter.
That the objectives of an organization or business should be realistic came to
light through the learning of the SMART theory of goal setting. I understood
that how the goal of a business or company are aligned at every level of
business and that their vision and mission are clear..
The tactics part actually has presented before me the entire marketing mix
process. It has taught me how the 7Ps of marketing are useful across an
organisation or a product or service. The 7ps have taught me how to integrate
different methods in management to analyze the operational effectiveness of
a business.
Personal Experience:
My experience as a student in this subject has been great one and has given
me a great learning for imparting at my place of business. The concepts that
have been taught in the class by the tutor, I am convinced that I can have
great success in the marketing field now. As prior to this course module I had
always shied off from marketing plans or topics. This is how I have been able
to put my learning experience into the learning about Yamaha.


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