INDEX

Chapter-1 INTRODUCTION 07
Chapter-2 CRITICAL REVIEW OF LITERATURE 12
Chapter-3 CORPORATE INTRODUCTION 16
Company profile 17
Industry profile 22
Products of Yamaha 23
SWOT checklist 38
Chapter-4 RESEARCH METHODOLOGY 40
Research problem and objective 41
Research process 41
Research design 42
Scope of study 44
Chapter-5 DATA COLLECTION AND PRESENTATION 45
Chapter-6 GRAPHICAL DATA ANALYSIS AND ITS INTERPRETATION 47
Chapter-7 FINDINGS OF THE RESEARCH 63
Chapter-8 GAPS IN LITERATURE REVIEW 67
Chapter-9 SCOPE OF STUDY 69
Chapter-10 PROBLEM IDENTIFICATION 71
Chapter-11 CONCLUSION 73
Chapter-12 SUGGESTIONS 75
Chapter-13 LIMITATIONS 77
Chapter-14 ANNEXTURE 79
Chapter-15 BIBLIOGRAPHY 83

EXECUTIVE SUMMARY

OBJECTIVE:
To Study the satisfaction level of customers for two wheelers industries.
RESEARCH METHODOLOGY:
The research had to be conducted through a survey based on questionnaires
Sample Size
47 Respondents
Brands Covered
Hero Honda
Bajaj
Honda
Tvs
Suzuki
Yamaha
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 analysed.















CHAPTER 1
INTRODUCTION






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 by behaviour, 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 other hand. It is rightly treated as 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 of 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 RESEARCH

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 middleman. Marketing activities can be
adjusted accordingly.
3) Wide gap between producers and consumers: - marketing research is 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 and reactions 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 it
possible to establish contact with consumers and collect first-hand information about their
needs, expectation, likes, dislikes, preferences and special features of their behaviour. Thus,
MR is needed for removing the wide communication gap between producers and consumers.
4) Changes in the 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 the
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 and habits. The demand for consumer durables is fast increasing. The market are now
flooded with consumer durable like TV sets and so on. Manufacturers are expected to know
such qualitative and quantitative change in the consumer preferences and their consumption
pattern. For achieving this objective, MR activities are necessary and useful. In brief, MR is
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 unavoidable 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 a 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 it 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 bring 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. MR is needed as
a tool for reasonably accurate decision making in the present highly competitive market
system.








CHAPTER-2
CRITICAL REVIEW OF
LITERATURE





LITERATURE REVIEW

'Consumer buyer behaviour refers to the buying behaviour of final consumers individuals
and households who buy goods and services for personal consumption.' (Philip Kotler)
'To understand the buyer, and to create a customer out of him, through this understanding, is
the purpose of buyer behaviour.' (Ramaswamy and Namakumari)
It needs to be specified at the outset that there is no unified tested and universally established
theory of buyer behaviour. What is available today, are certain ideas of buyer behaviour.

FACTORS INFLUENCING BUYER BEHAVIOUR
A number of factors influence buyer behaviour. They can be grouped under three broad
categories.
1. Factors that are part of buyer as an individual.
2. Buyer's social environment (group influence).
3. Information from a variety of sources.

1. Factors that are part of the Buyer as an individual:- An individual's religion
and cultural background, his personality traits, self-concept, his general endowments, his
upbringing in short, his overall bio data play a crucial role in his conduct as a
buyer/consumer. These factors can be grouped broadly into three categories.
i. Personal factors
ii. Cultural factors
iii. Psychological factors

I. Personal Factors Age, Education, Economic Position, Self-concept An individual,
age, level of education, his occupation, overall economic position and lifestyle all influence
his role as a buyer. They decide what products he will buy and consume. A person's self-
concept and his concern about his status also influence his buying decisions. In fact today
people are very concerned about their image and status in society. Its a direct outcome of
their material prosperity. The desire for self-expression and self-advancement is closely linked

with social status. Even if a product that constitutes a status symbol is beyond their immediate
reach, their aspiration to possess it will influence their decision making process.

II. Cultural Factors Religion, Language etc. Every culture, every language and every
religion group dictates its own unique patterns of social conduct. Within each religion, there
may be several sects and sub sects; there may be orthodox groups and cosmopolitan groups.
In dress, food habits or marriage in almost all matters of individual life religion and
culture exercise an influence on the individual, though the intensity may vary from society to
society. The do's and don'ts listed out by religion and culture impacts the individual's lifestyle
and buying behaviour.

III. Psychological Factors Beliefs, Attitudes, Motivation, Perception Just like the
economic and social conditions, a man's disposition too has a close bearing on his purchase
decisions. Individuals coming under the same economic and social groups can be vastly
different when it comes to certain personal beliefs, faith and attitudes. One may be timid and
plain, while another may be outgoing and aggressive. One may be traditional in the overall
view of life, while another may be modern. One may be east innovative, while another may
welcome anything new. In fact, the maximum variations are seen here and in the matter of
analysis and assessment too, this area poses maximum problem to the marketer.
2. Buyer's Social Environment (group influence) the buyer living in a society is influenced by
it and is in turn influencing its course of devebpment. He is a member of several organizations
and groups, both formal and informal. He belongs 22 families, he works for a certain firm, he
may be a member of a professional forum, he may belong to a particular political group, or a
cultural body. There is constant interaction between the individual and the groups to which he
belongs. And all these interactions leave some imprint on him, which influences him in his
day to day life and consequently, his buying behaviour.

There are two broad types of group Influences:
i. Influence of intimate group.
ii. Influence of the broad social class.
i. Influence of Intimate Group: - Examples of intimate groups are family, friends,
close colleagues and closely knit organizations. These groups exercise a strong influence on
the lifestyles and the buying behaviour of its members. Arnong these groups the most
influential and primary groups are the family and peer groups. The peer groups are closely
knit groups composed of individuals, who have a common social background and who
normally belong to the same age group. The peer group has the greatest influence on the

individual member as a stabilizer of styles and behaviour patterns. In any intimate group,
there is likely to be an informal group leader. Te group respects him and looks up to him.
Though the leader may not directly influence every member in his day to day purchases, his
judgment on men and matters, and facts and fashion is respected by the group; and his views
and lifestyle influences their buying decisions. He is normally the innovator in the group, who
first tries new products and new ideas, and then, he becomes the propagator of those products
and ideas. These opinion leaders or influencers play a key role in marketing. Marketers often
try to reach these leaders first through advertisements and other means of communication.
And if the leaders are convinced, their groups are likely to follow suit.

ii. Influence of the Broad Social Class: - Structurally, the social class is a larger group
than the intimate groups. The constitution of a social class is decided by the income,
occupation, place of residence, etc. of the individual members. The members of a social class
enjoy more or less the same status or prestige in the community. They share a common
lifestyle and behaviour pattern. And they normally select a product or brand that caters to their
class norms. Often they even do their shopping in the same shopping are and patronize
selected shops, which befit their class image. This does not mean that all the members of a
given social class will buy the same products and the same brands or conform to the same
style, amounting to a sort of regimentation. Differential liking may exist among the members.
But, in a buying situation in which objective standard are not available to guide them, they
may conform to the 'class norms'. Studies have shown that the extent of influence the social
class has on its members will depend on the extent of attractiveness of the group holds out to
them. The greater the attractiveness, the larger is the behavioural conformity.
Study of group influence on the individual buying behaviour will help the marketers to
devebp right strategies for different customer segments. It is not feasible for them to appeal to
the fancies of every individual buyer. They can find 'commonalities' or 'pattern' among
specific groups of buyers and work on them.

iii. Information from various sources: - The buyer today is exposed to a veritable
flood of information, unleashed on him from different sources. These sources inform him
about new products and services, improved versions of existing product new uses for existing
products and so on. The information sources that persuade people to try a product include:
advertising, samples and trials, display in shops and salesmen's suggestions. Each of these
sources provides some information to the buyer about the products. When the buyer sees an
advertisement for a product, he is informed about the existence of the products. Later on, he
may develop a positive or negative attitude towards the product or he may remain neutral. The
availability of the product in the shop itself acts as an information source to the buyer. The
buyer may evince an interest in the product and may inquire about it. The product advertises
itself. Often salesmen serve as a source of information to buyers. The salesmen may inform
the prospects about a product explain its advantages and may even suggest a trial purchase.












1. Problem recognition-The process of buying normally starts with the recognition of a
need by the consumer. He recognizes a problem and develops a perception of the problem.
Then he seeks information for solving his problem.
2. Awareness- The customer turns to his environment /world of information around him. It
makes him aware of the existence of the product that would solve his problem.
3. Comprehension- (Evaluation, Comprehension comes out of his ability to reason with
the information. The awareness and comprehension stages represent the information
processing stage. These two stages constitute the cognitive field of the purchase process.
4. Attitude- It is the sum total of the individual's faith and feelings towards a product. As a
result of his awareness and comprehension, the consumer develops an attitude favourable
or unfavourable towards the product. The purchase process will continue only if he
develops a favourable attitude or a liking for the product.
5. Legitimization- The buyer must be convinced that the purchase of the product is the
legitimate course of action. This stage often stands as a barrier between a favourable attitude
towards the product and actual purchase. Only if the buyer is convinced about the correctness
of the purchase decision, will he proceed. At this stage, he may seek further information
regarding the product, or attempt to assess the information already available. Attitude and
legitimization constitute the attitude field of the purchase process.
6. Trial- Conviction leads the consumer to try the product on a small scale: he may buy a
sample. He tries to evaluate the product from his own experience.
7. Adoption- A successful trial leads him to buy/adopt the product Trial and Adoption
constitute the behavioural field in the buying process.
8. Post-Purchase Behaviour- The purchase leads to specific post purchase behaviour.
Usually, it creates some restless ness in the mind of the individual. He is not sure about the
product. He may feel that 'the other brand' would have been better. He may even feel that the
salesman has taken him for a ride. As this dissonance is uncomfortable, the individual, by
himself will seek all means to recover his conviction and poise. He well seed reassuring
advertisements of the product or he may deliberately avoid positive stories of the competing
brand.






THE YAMAHA STRATEGY IN INDIA

Yamaha has shifted its focus from the lower end segments to the premium segment of bikes.
It aims to provide its customers the full range of its engineering marvels that make Yamaha
the company that it is. Yamaha has aim. To become the No.1 in customer satisfaction and is
looking forward to providing the customer with an 'experience' with its products.
The target market of India Yamaha Motors is the young and enthusiastic 18-25 yr. olds who
are willing to try taking the not so much tread. Path of buying the 'sports bike' rather than a
'utility two wheeler'. The young guns are very conscious of the style quotient and look
forward to their ride being a personality statement.
With the increasing dispensable income in India and growing middle and upper middle class
segment Yamaha is sure to find many prospective customers. With news of India becoming
the breeding ground for millionaires Yamaha has certainly identified opportunity and has
grabbed it hands down.
THE 4 P'S FOR INDIA YAMAHA MOTORS
Product: India Yamaha Motors has recently launched its sports bike R15 and FZS in the
150cc.Yamaha is bringing its latest technologies to India and aims to come up with a new
product for the Indian market every quarter. The reliability and riding quality of a Yamaha
have already been established through its earlier products.
Price: The Yamaha range of products has been very competitively priced and the prices of
its products like the R15 has also been priced optimally looking at the specifications of the
bike. The bike despite being only 150 cc provides around 22 BHP of power, more than any
other bike in the 150-220cc. bracket. The bike has also brought the liquid cooled engine
technology to India and other features like the styling etc. are also quite new for the Indian
market and hence considering what it gives you it is a bargain at Rs.97, 500.
Promotion: Yamaha has been constantly losing market share over the last few years and
has thus decided to change its brand image with change in its market strategy. The company
now wants to be known for its style and speed. It looks to be known as a sports bike
manufacturer and not as an economy bike segment player. Taking these factors into
consideration the company has started a complete makeover of its image. The recent R15 and
FZS ads on numerous channels on N and other ads on both electronic and print media
vindicate the point. The company has also opened. 'Yamaha bike stations' which are company
owned showrooms and completely symbolize the brand image that Yamaha wants to achieve
in India.
Place: India Yamaha Motors has adopted a two tier marketing channel consisting of the
Primary dealers at tier1 and the secondary dealers or retailers at tier2. In addition to these two
tiers there are also the 'company owned showrooms' and the multibrand outlets.












CHAPTER 3
CORPORATE INTRODUCTION












INDUSTRY/COMPANY PROFILE
COMPANY PROFILE
About YAMAHA motor 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.
INDUSTRY PROFILE
The Indian automotive industry consists of five segments: commercial vehicles; multi-utility
vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 5,822063 units
sold in the domestic market and 453,591 units exported during the first nine months of
FY2005 (9MFY2005), the industry (excluding tractors) marked a growth of 17% over the
corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend
since the mid-nineties.
Two-wheelers: Market Size & Growth
In terms of volume, 4,613,436 units of two-wheelers were sold in the country in 9MFY2007
with 256,765 units exported. The total two-wheeler sales of the Indian industry accounted for
around 77.5% of the total vehicles sold in the period mentioned.
Demand Drivers
The demand for two-wheelers has been influenced by a number of factors over the past five
years. The key demand drivers for the growth of the two-wheeler industry are as follows:
Inadequate public transportation system, especially in the semi-urban and rural areas;
Increased availability of cheap consumer financing in the past 34 years;
Increasing availability of fuel-efficient and low-maintenance models;
Increasing urbanization, which creates a need for personal transportation;
Changes in the demographic profile;
Difference between two-wheeler and passenger car prices, which makes two-wheelers
the entry level vehicle;
Steady increase in per capita income over the past five years; and
Increasing number of models with different features to satisfy diverse consumer needs.

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








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
world, biggest piano maker, then Yamaha CEO Genichi kawakami took Yamaha into the field
of motorized vehicles on July 1, 1955. The company's intensive research into metal alloys for
use in acoustic pianos had given Yamaha wide knowledge of the making a 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 world's 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 .ere 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 Mildcola, 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 modem 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
(1,81, but 1,77 in works bike).
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 Rod, Gould winning the title on a Yamaha
TD2.




MOTORCYCLE MODELS


YAMAHA FZ-S

Yamaha FZ-S 150cc , a recently launched bike by the industry giant Yamaha. After the grand
success of FZ-16 Yamaha has finally launched its modified version (FZ-S) in India. This
fabulous bike is equipped with all the necessary features one may think of. It stands ahead in
style and performance not only in its segment but beyond. This bike is best suitable for those
who want elegance and power in one. It is design and engineered with the capacity for active
and aggressive enjoyment of around-town street riding and styling, bringing a sense of pride
for the owner of the bike. It is especially designed to satiate riders' desire for style and
fashion. It is popularly referred as the 'Stylish Macho Street Fighter.' (Lord of the Streets).
The primary features of Yamaha F7-S include
Stainless steel body
Aerodynamic muscular design
High torque rate
Disk brakes
Electric start starting system
Electronic fuel injection system

YAMAHA YZF R15

This is the latest offering from the Yamaha stable. The YZF R15 is the first truly sports bike
launched in India. The looks and design have been done keeping the bigger R1 in mind and
hence the resemblance. The bike is priced at Rs.97500 (ex-showroom) across India. It boasts
of the first liquid coo. 4 valve engine in the two wheeler category which gives it better
performance and power. It is a 150cc bike having enough power to bring chills to the rider
when he revs up the accelerator.



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 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 characteristic of each of the three broad segments are discussed in Table 1.



Scooter Motorcycle Moped
Price*(Rs. As in
January 2008)
>22000 >30,000 >12,000
Stroke 2-stroke,4-stroke Mainly 4-stroke 2-stroke
Engine capacity (cc) 90-150 100,125 >125 50,60
Ignition Kick/Electric Kick/Electric Kick/Electric
Engine power(bhp) 6.5-9 7-8 and above 2-3
Weight(kg) 90-100 >100 60-70
Fuel Efficiency (km
per litre)
50-75 50-80+ 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 FY 1998, 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
FYI 996 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 .ere 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 favour 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.



Manufacturer

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 (HMS!).
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 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.HTML, which had concentrated on the motorcycle
segment, was the man 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 ven.es
(HHML).
A third form - that is, the 100% owned subsidiary route - found favour 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 ven.es (SMC
reportedly acquired equity stake in Integra Overseas Limited for manufacturing and marketing
Sum. motorcycles in India).






Nature of
Alliance
Company Product
Bajaj
Auto
Technological
tie-up
Kawasaki Heavy
industries Ltd, Japan
Motorcycles
Technological
tie-up
Tokyo R&D Co Ltd,
Japan
Two-wheelers
Technological
tie-up
Kubota Corp, Japan Diesel Engines
KEL Tie up for
manufacturing
and
distribution
Italjet, Italy Scooters
LML Technological
tie-up
Daelim Motor Co Ltd Motorcycles
Hero
Motors
Technological
tie-up
Aprilla of Italy Scooters



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 name 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 need 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 .n 150cc) and power (higher than 15bhp). These include
models such as Bajaj Auto Eliminator and Royal Enfield's Thunderbird followed by HHML's
Karizma and Yamaha R15 and other sports bikes. The products in this segment cater for style
conscious consumers. Quite a 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 &
development (R&D) capabilities and reducing the development time for new models.



SWOT ANALYSIS

Strengths
Yamaha Motor products extend from land to sea and even into the skies, with manufacturing
and business operations that include everything from motorcycles, PSA electro-hybrid bikes,
marine and power products to automotive engines.
Continuously does product improvement in accordance with demanding customers.
The distribution network of Yamaha Motors is very wide and spread across the country.
Probably the best in terms of R&D facility.
Has great brand name and commands lot of respect among bikers community.

Weakness
Narrow product line in terms of motorcycles.
Yamahas strategy for Indian market was on right alleyway, but somewhere down the lane,
they are still relying on conventional model which no longer in use.
Yamaha despite the promise has failed to deliver and is still an underdog in the race to top.
A series of unsuccessful and flop bikes have eroded the legacy of RXl00 and RD350.

Opportunities
The motorcycle market has been growing at a phenomenal rate and there has been a shift in
the consumer preference from 2 stroke bike. Yamaha motors have recognized this and are
bringing out new models of 4 stroke bikes quite regularly to cater the needs of the customers.
Consumers have become technology conscious and Yamaha Motors have best R&D
facilities. So they can tap new customers with innovative technology in motorcycle design and
manufacturing.
There lies lot of potential in 150cc and above segment and Yamaha has not made enough
inroads in this segment.



Threats
Continuous divisions of customer segment have made conventional bikes which was the
strength of Yamaha motors.
Constant demand for price reduction from customers.
Bajaj Auto and TVS have taken large part of the market share from Yamaha.
Growing competition in the industry, both in the terms of new models and price
undercutting, too is a matter of concern as both the sales realization and operation margins
may come under pressure.


























CHAPTER 4
RESEARCH TECHNOLOGY







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 prim, 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, 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 %that 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 f he survey. The
questionnaire is of structured type.
Determining the Sample S.: Next step is to determine the number of to be targeted
from various ages, monthly salary, and gender. So a total of 47 people were surveyed.

Collecting the data: The data was collected from various class of people based on age,
s., 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 20 different parameters.
Generalization and Interpretation: Data was tested and upheld several times, and
then generalizations welt 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 47 people have been questioned for the purpose of filling up the
questionnaire.

Details of the Survey Conducted

Sample size 47
Target Population




20 25 years
25 30 years
30 and above
Area covered Raipur (C.G.)

Sampling Judgemental Simple Random
Type of Questionnaire Structured 5 point bipolar liker
scale
Type of Questions Close ended Questions
















CHAPTER 5
DATA COLLECTION AND
INTERPRETATION










DATA COLLECTION AND INTERPRETATION

The research required collection of first hand prim, 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 pro,
consideration of the brand image of the bike they were currently using. The questionnaire
contained liker sealing 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 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.








CHAPTER - 6
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 that helps the researcher to interpret his data into final results.
the data collected in this research was analyzed using the 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:
i. customer's age
ii. marital status
iii. profession
iv. education
v. attitude of dealer
vi. Explanation of product features by the dealer.
vii. sales terms and conditions
viii. product display in the showroom
ix. cleanliness in showroom and service station
x. atmosphere
xi. cleanliness of purchased bike
xii. time taken in delivery
xiii. explanation of bike functions
xiv. PDI and checks made
xv. Time taken in documentation
xvi. Salesman follow up
xvii. Reminder of first service
xviii. Action to complains
xix. Replacement condition









GRAPHICAL DATA INTERPRETATION

1. Which age group of customer prefer bike most?

Age Group
18 25 25 - 35 35 45 Above 45
Percentage 65% 20 % 10 % 5 %





Interpretation

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


2. How do professional/Occupational people show there preference
towards motor bike?

Student 45%
Service 40%
Business 5%
Self-Employed 5%
Others 5%








Interpretation

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






Interpretation

In the base of economically, it is used in the base of income i.e. 35% of income group 10000-
15000, 40% of 15000-20000, 15% of income group of 20000-50000 and rest of used in rarely
above income of 50,000.




4. Which companys bike customer would like to purchase?

Hero-Honda 40%
Bajaj 45%
YAMAHA 10%
TVs 3%
Honda 2%







INTERPRETATION

40% of motor Bike Company and its model 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 the bike customer would like to prefer most while
purchasing?

Speed 40%
Power/BHP 5%
Mileage 30%
Design 5%
Brand 5%
Pick-up 2%
Colour 5%
Comfort 8%





INTERPRETATION
40% of the people mostly adopt bikes due to the speed factor, 30% for the mileage, and 8%
for comfort, 5% for power/BHP, design, brand and colour, 2% for pickup.


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%






INTERPRETATION

They are aware and know about motor bike product 35% by TV channels, 15%
newspaper/magazines, 12% by friends, 10% by product show, 10% through internet, 8% by
family and other through test riding and hoardings.

7. Why did you purchase a bike?

Brand value 80%
Design 5%
Publicity 14%
Scheme 0%
Gift 1%







INTERPRETATION

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



8. How was your experience after using the bike?

Excellent 75%
Good 20%
Satisfactory 5%
Not good 0%










INTERPRETATION

In the survey it has been found that 75% Excellence and 20% was telling about the Good
theme.


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

Showroom 95%
Road-Mechanic 5%









INTERPRETATION

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




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

Extremely well 45%
Very well 50%
Average or Not well 0%
Not at all well 5%







INTERPRETATION

Yes, 50% customers has been highlight about brands and can have a very well








CHAPTER 7
FINDINGS OF RESEARCH












INTERPRETATION

1. Out of the six brands covered the respondents of Suzuki are generally married while other
brands have unmarried customers.
2. 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.
3. When explanation of product features com. into view; only Yamaha customers rank them
average; others says it's good.
4. Hero Honda and Honda are most favoured brands when timely delivery of bike comes into
picture.
5. Suzuki customers says that they have to run after their dealers for the documentation of the
delivery done while others say they are satisfied.
6. Yamaha is best when sales follow up after delivery is concerned.
7. 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.













CHAPTER 8
GAPS IN LITERATURE












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; Young 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
























CHAPTER - 9
SCOPE OF STUDY











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 title 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, behaviour 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.

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 wheeler 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.
















CHAPTER - 10
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 lack in aggressive marketing strategy.
Indian customers are mainly commuters and not bikers.
Yamaha has no raring ISO cc range bike.
People having a halo image of RX-I00.
Yamaha has lost trust among Indian consumers by producing bikes like YBX, Frazer and
Libero.
High maintenance cost.
Dearer accessories.
Yamaha has no vulnerable bike to compete with high mileage bikes of TVS and Hero
Honda.
















CHAPTER - 11
CONCLUSION













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

Age group
21-35 years
Profession
Mostly salaried
Customers are generally satisfied with attitude 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.
Favoured bikes in today's date are
Hunk
Pulsar
Apache
Customers stress on quality as complimentary 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 evaluation other than found of Noida then Greater Noida.
















CHAPTER 12
SUGGESTION







SUGGESTIONS

1. 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.
2. 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 price, power, pick-up, mileage and style.
3. INTEGRATION OF MARICETING AND R & D DEPARIMENT - Yamaha has got
best R&D facilities 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.
4. 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.
5. 360 degree marketing approach and need to follow aggressive promotional campaigns to
grab a larger piece of pie in the motorcycle segment.
6. Focus should be on teenagers, young and executives as they represent largest portion of the
bike user segment.
7. Provide better sales follow up which almost every brand 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.
8. Indian customers generally do not Use bike for fashion but as a necessity so mileage should
be a concern, so it needs to create a better image in the mind of its customers regarding
mileage.










CHAPTER 13
LIMITATIONS






LIMITATIONS

1. Research was limited to only two wheeler motorcycle industry.
2. 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.
3. Sometimes it was very difficult to get the necessary information as filling the questionnaire
required time.
4. Research could have been wider in scope if along with customer satisfaction level
consumer behaviour pattern was also studied.


















CHAPTER 14
ANNEXTURE








1. Which age group of customer prefer bike most?
a. 18-25 b. 25-35 c. 35-45 d. about 45

2. How do professional/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. 20000-50000 d. 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-upg.
Colour h. Comfort

6. How do people come to know about bikes?
a. T V 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 customers get full value of money for the bike they purchased?
a. Yes b. No

11. Are customers satisfied with the performance of their bikes?
a. Yes b. No

12. Which type of brakes is 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