A Project Report On Marketing & Sales in YAMAHA at Mahesh Motors MASTER OF BUSINESS ADMINISTRATION

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1 A Project Report On Marketing & Sales in YAMAHA at Mahesh Motors A Summer Training Project Report Submitted In Partial Fulfillment Of The Requirements For The Award Of Degree Of MASTER OF BUSINESS ADMINISTRATION ACADEMIC SESSION ( ) Submitted By:- Guided By:- Prateek Kapil Mrs.AnuradhaYesugade BHARTI VIDYAPEETH DEEMED UNIVERSITY INSTITUTE OF MANAGEMENT AND

2 ENTREPRENEURSHIP DEVELOPMENT, ERANDWANE, PUNE COMPANY CERIFICATE This is to certify that the project report entitled Marketing & Sales in YAMAHA at Mahesh Motors Submitted to the Bharati Vidyapeeth Deemed University, Pune in partial fulfillment of the requirement for the award of degree of MBA is an original work carried out by Mr Prateek Kapil under the guidance of Mr ARUN KUMAR. The matter embodied in this project is a genuine work done by Prateek Kapil to the best of my knowledge and belief and has not been submitted before, neither to this university nor to any other university for the fulfillment of the requirement of any course of study. Signature of the Student Signature of the Guide

3 CERTIFICATE This is to certify that the project titled Marketing & Sales in YAMAHA at Mahesh Motors is an academic work done by Prateek Kapil submitted in partial fulfillment of the requirement for the award of degree of MBA Bharti Vidyapeeth Deemed University,Pune.it has been completed under the guidance of Mrs. ANURADHA YESUGADE. WE are thankful to Mahesh Motors for having allowed our student to undergo project work training.the authencity of the project work will be examined by the viva examiner which includes data verification, checking duplicity of information etc. and it may be rejected due to non fulfillment of quality standards set by the Institute. DR SACHIN S. VERNEKAR (DIRECTOR IMED)

4 DECLARATION I hereby declare that all the information that has been collected, analyzed and documented for the project is authentic possession of mine. I would like to categorically mention that the work here has neither been purchased nor acquired by any other unfair means. However, for the purpose of the project, information already compiled in many sources has been utilized. PRATEEK KAPIL

5 ACKNOWLEDGEMENT No small task however can be completed without proper guidance and encouragement. It gives me great pleasure to excess my deep sense of gratitude and reverence to every person who directly or indirectly has helped to create a congenial atmosphere for successfully completion of this project report. I would like to extend my sincere thanks to Mr Arun Kumar my project guide for his guidance and support through my training at Mahesh Motors. His calm demeanour and willingness to teach has been a great help in successful completion of my project. My learning has been immeasurable and working under them was a great experience.my sincere thanks also extend to all the staffs of Mahesh Motors. For providing a hospitable and helpful work environment and making my summer training an exciting and memorable event. My heartful thanks are also towards the guide of my institute. Mrs. Anuradha Yesugade without her continues help and enthusiasm the project would not have been materialized in the present form Finally I also wish to thank the DR Sachin Venekar, Director IMED Pune for making this experience of summer training in an esteemed organization Mahesh Motors. The learning from this experience has been immense and would be cherished throughout life.

6 Mr. Prateek Kapil CHAPTER 1: INTRODUCTION AUTOMOBILE INDUSTRY Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being number two in two wheelers and fourth in commercial vehicles. With standing a growth rate of 18% per annum and an annual production of more than 2million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year. Besides a steady growth in India's fiscal system, the expansion of Indian middle class has also played a major role in drawing the attention of international auto manufacturers towards the Indian Automobile Market. Forever, India is one nation which provides skilled workforce at cut-throat prices making itself a preferable manufacturing centre. The magnetism of the Indian markets and the decline of global auto industries such as Japan, Europe and US have triggered the influx of new conglomerates along with huge capital investments in the sector. Indian Two-Wheeler Industry India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country. Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world.hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers. Foreign collaborations have been playing a major role in the growth of the Indian two-wheeler market, and most of them are Japanese firms. The modern two- wheeler firms in India have been manufacturing new

7 categories of two wheelers such as Step- Through and Scooters. These have been produced by combining two or more two-wheeler segments. Foreign firms have already taken initiatives to own their two-wheeler subsidiaries in India. The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies led to the arrival of new models of two-wheelers into India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This led to the strong growth of Indian automobile industry. Kinetic Honda was introduced in the Indian market during the mid 80s. The main feature of Kinetic Honda was its ease of use. This helped the youngsters and the women to buy scooters Major players in the 2- wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS). The other key players in the two-wheeler industry are Yamaha Motors India Ltd (Yamaha), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI). OVER VIEW OF YAMAHA MOTORS PVT. LTD. Yamaha Motor Co., Ltd. Founded July 1, 1955 Capital 85,753 million yen (as of March 31, 2015) President Hiroyuki Yanagi Employees (Consolidated) 52,662 (as of December 31, 2014) Parent :10,377(as of December 31, 2014) Headquarters 2500 Shingai, Iwata-shi, Shizuoka-ken, Japan Group Companies

8 Consolidated subsidiaries: 107 Non-consolidated subsidiaries: 4 (by the equity method) Affiliates: 26 (by the equity method) Sales (from January 1, 2014 to December 31, 2014) Consolidated 1,521,207 million yen Parent 597,577 million yen Sales Profile (Consolidated) by Region by Product Category

9 Profile Of The Organization ABOUT INDIA YAMAHA MOTOR PVT. LTD. Yamaha made its initial foray into India in In August 2001, Yamaha Motor India became a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor in the company "India Yamaha Motor Private Limited (IYM)". IYM's manufacturing facilities comprise of 2 State-of-the-art Plants at Surajpur (Uttar Pradesh) and Faridabad (Haryana). The infrastructure at both the plants supports production of motorcycles and parts for the domestic as well as overseas markets. With a strong workforce of more than 2,300 employees, IYM is highly customer-driven and has a countrywide network of over 1200 customer touch-points including 400 dealers. Presently, its product portfolio includes YZF-R15 Version 2.0 (149.8cc), Fazer (153cc), Fazer Version 2.0 (149cc), FZ-S (153cc), FZ-S FI Version 2.0 (149 cc), FZ (153cc), FZ FI Version 2.0 (149 cc), SZ-S & SZ-RR (153cc), SZ - RR Version 2.0 (149 cc), Saluto (125cc), SS125 (123cc), YBR125 (123cc), YBR110 (106cc), Crux (106cc) and Scooters Ray (113cc), Ray Z (113cc), Alpha (113cc) and Fascino(113cc). Its import portfolio includes VMAX (1,679cc), YZF-R1M (998 cc), YZF-R1 (998cc) and FZ1 (998cc). The other Yamaha Motor Group Companies in India include: Yamaha Motor India Pvt. Ltd. (YMI) is a 100% subsidiary of YMC and functions as the regional headquarters and corporate control body of India business operations for YMC. YMI is responsible for Corporate Planning & Strategy, Business Planning & Business Expansion and Quality & Compliance Assurance of Yamaha India Business. Yamaha Motor India Sales Pvt. Ltd. (YMIS) is a 100% subsidiary of YMC. YMIS is established by YMC to provide Sales & Marketing services to IYM. Headquartered in Chennai, YMIS supports IYM to market and sell its motorcycles & scooters in domestic as well as export markets.

10 Yamaha Motor Research & Development India Pvt. Ltd. (YMRI) is a 100% subsidiary of YMC. YMRI is established by YMC to provide R&D and Product development services to IYM. Headquartered in Surajpur, Gautam Budh Nagar (U.P.), YMRI is engaged in developing new products for IYM for its domestic as well as export markets. YMRI is the fifth overseas R&D headquarters for Yamaha Motor Group following Italy, Taiwan, China, and Thailand. VISION 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". MISSION 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. CORPORATE SOCIAL RESPONSIBILITY POLICY Corporate Social Responsibility (CSR) is strongly connected with the principles of sustainability; an organization should take decisions based not only on financial factors, but also on the social and environmental consequences. Therefore, it is the core corporate responsibility of India Yamaha Motor Private Limited (hereinafter referred to as "the Company") to practice its corporate values through its commitment to grow in a socially and environmentally responsible way, while meeting the interests of its stakeholders. CSR is the continuing commitment by business to perform ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. CSR is clearly on capacity building, empowerment of communities, inclusive socio-economic growth, environment protection, promotion of green and energy efficient technologies, development of backward regions, and upliftment of the marginalized and under-privileged sections of the society. As a corporate entity, the Company recognizes that its business activities have wide impact on the societies in which it operates, and therefore an effective practice is required

11 giving due consideration to the interests of its stakeholders including shareholders, customers, employees, suppliers, business partners, local communities and other organizations. The Company endeavour to make CSR a key business process for sustainable development. The Company is responsible to continuously enhance shareholders wealth and it is also committed to its other stakeholders to conduct its business in an accountable manner that creates a sustained positive impact on society. The Company is committed towards aligning with nature; and has adopted eco-friendly practices. Essentially, CSR, which is deliberate inclusion of public interest into corporate decision making by undertaking different projects for development of society, has the potential of contributing significantly in the long run to socio-economic growth in the backward regions and other sections of the society. The emerging concept of CSR goes beyond charity and requires the Company to act beyond its legal obligations and to integrate social, environmental and ethical concerns into the Company's business process. In April 2013, IYM established 2 functionally independent entities namely Yamaha Motor India Sales Pvt. Ltd. (YMIS) that will cater to the sales and marketing needs of the company and Yamaha Motor Research and Development India Pvt. Ltd. (YMRI) that is intended to increase Yamaha's manufacturing competitiveness through the establishment of an R&D headquarters in India. CSR does not emanate directly from external demands but from organizationally embedded processes. These processes prompt the organization to view its relationships with stakeholders in a different perspective, which in turn influences its engagement with them. The Board of Directors of the Company has devised social responsible business practices under the general rules issued by the Ministry of Corporate Affairs for compulsory implementation of CSR activities. History OVERVIEW - INDIAN AUTOMOBILE INDUSTRY Over a period of more than two decades the Indian Automobile industry has been driving its own growth through phases. The entry of Suzuki Corporation in Indian passenger car manufacturing is often pointed as the first sign of India turning to a market economy. Since then the automobile sector witnessed rapid growth year after year. By late-90's the industry reached self reliance in engine and component manufacturing from the status of large scale importer. With comparatively higher rate of economic growth rate index against that of great global powers, India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With the Indian middle class earning higher per capita income, more people are ready to own private vehicles including cars and twowheelers. Product movements and manned services have boosted in the sales of medium and sized commercial vehicles for passenger and goods transport. Side by side with fresh vehicle sales growth, the

12 automotive components sector has witnessed big growth. The domestic auto components consumption has crossed rupees 9000 crores and an export of one half size of this figure Overview Of Automobile Industry The Indian automobile industry is going through a technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years. History of the Organization HISTORY Yamaha's history goes back over a hundred years to 1887 when Torakusu Yamaha founded the company, which began producing reed organs. The Yamaha Corporation in Japan (then Nippon Gakki Co., Ltd.) has grown to become the world's largest manufacturer of a full line of musical instruments, and a leading producer of audio/visual products, semiconductors and other computer related products, sporting goods, home appliances and furniture, specialty metals, machine tools, and industrial robots. The Yamaha Motor Corporation, Ltd., begun on July 1, 1955, is a major part of the entire Yamaha group, but is a separately managed business entity from the Yamaha Corporation. The Yamaha Motor Corporation is the second largest manufacturer of motorcycles in the world. Yamaha Motor Corporation owns its whollyowned subsidiary in the U.S. called Yamaha Motor Corporation, USA, that is handling not only motorcycles, but also snow mobiles, golf carts, outboard engines, and water vehicles, under the brand name of Yamaha as well. In 1954 production of the first motorcycles began, a simple 125cc single-cylinder two-stroke. It was a copy of the German DKW design, which the British BSA Company had also copied in the post-war era and manufactured as the Bantam. About India Yamaha Motor Pvt. Ltd. Yamaha made its initial foray into India in Subsequently, it entered into a 50:50 joint-venture with the Escorts Group in However, in August 2001, Yamaha acquired its remaining stake

13 becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint investor in the motorcycle manufacturing company "India Yamaha Motor Private Limited ( IYM)". IYM operates from its state-of-the-artmanufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles both for domestic and export markets. With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a countrywide network of over 400 dealers. CORE COMPETENCIES 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. Everyone's 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 organization's goals. 1COMPETITORS ANALYSIS Bajaj Auto Ltd. Established in 1945 Bajaj Auto Ltd was incorporated as a TRADING COMPANY. Till 1959,they imported scooters and threewheelers from Italy and sold them in India. The company got a production license in the year 1959 and fastened a technical collaboration with Italian PIAGGIO in 1960.Bajaj Auto Ltd. is one among India's top ten companies in terms of market capitalization and among the top five in terms of annual turnover. The company started producing scooters in the year 1961 and followed three-wheelers production in Its collaboration with Piaggio expired in 1971 and since then, their scooters and three-wheelers are being sold with the

14 brand name BAJAJ". Maharashtra Scooters Ltd., a Company with 24% equity participation by the Company and 27% participation from Maharashtra State Governments Western Maharashtra Development Corp. was formed in the year 1975 under the "Horizontal transfer of technology" policy. The first production unit is located at Satara, Maharashtra. The unit continues to collect scooters from CKDs supplied by the Company. These scooters are marketed through the Company's distribution network and under the Company's brand name. In 1984, the second production plant was set up at Aurangabad, Maharashtra. This plant started scooter production in 1986, three-wheeler production in 1987 and scooters and motorcycle facilities were commissioned in 1990 & 1991 respectively. Today, the company has become a market leader with annual production in excess of1.35 million units which was about 4000 units in These days, Bajaj Auto Ltd. has started offering products in all segments (mopeds & scooters, scooters, motorcycles, three wheelers). TWO WHEELERS>> MOTOR CYCLE Bajaj Avenger 180 CC Bajaj CT CC Bajaj Discover DTSi 135 CC Bajaj KB CC Bajaj Platina CC Bajaj Pulsar DTS-Fi 220 CC 220 CC Bajaj Pulsar DTSi 180 CC Pulsar 180 DTS-i UG 150 CC Pulsar 150 DTS-i UG 200 CC Pulsar 200 Cc 220 CC Pulsar 220 DTS- Fi Bajaj Wind CC Bajaj XCD 125 CC>> SCOOTERS Bajaj Bravo 145 CC Bajaj Chetak CC Bajaj Classic SL CC Bajaj Legend 150 CC>> SCOOTERETTES/MOPEDS Bajaj Blade DTSi 100 CC Bajaj Cagiva CRX 145 CC Bajaj Fusion 145 CC Bajaj Kristal DTSi 100 CC Baja j 80 Electronic CC Bajaj Rave CC Bajaj Saffire 74.4 CC Bajaj Spirit 100 CC Bajaj Sunny CC Bajaj Sunny Spice CC Bajaj Wave DTSi CC AWAITED MODELS Sonic DTSi Motorcycle Hero Honda Motors Ltd. Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Group and Japanese Honda Motors Company in the year This joint venture has not only created the worlds single largest two wheeler company but also one of the most successful joint ventures worldwide. Hero Honda is globally known of being the most fuel-efficient and the largest CBZ selling Indian Motorcycle Company. This is a relationship so harmonious that Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record worldwide. The below chart shows the golden years in the history of HERO HONDA : CD SLEEK 1991 CD-100 SS 1994 Splendor 1997 Street 1999 CBZ 2001 PASSION 2002 DAWN, AMBITION CD-DAWN, SPLENDOR +, PASSION +, 2003 KARIZMA SUPER-

15 SPLENDOR, CD-DELUX, 2005 GLAMOUR, ACHIEVER Golden Years of HERO HONDA The company is committed to provide the customer with excellence. A rich background of producing high value products at reasonable prices led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer.during 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country. Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been steadily on the rise. Over the years, the Company has received its share of accolades, including the National Productivity Councils Award ( ), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders. The gross sales of Hero Honda by March end2008 was 33, 371, 43 Crores. TWO WHEELERS >> MOTORCYCLES Hero Honda Achiever Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda CD 100 Hero Honda CD 100 SS Hero Honda Glamour Hero Honda Splendor Hero Honda Glamour Splendor + Glamour Hero Honda Passion Plus Super Splendor Glamour - FI Splendor NXG Hero Honda Sleek Hero Honda CBZ X-TREME Hero Honda Karizma Hero Honda Hunk Hero Honda Models3. Honda Motorcycles & Scooters India Private Limited Established in 1999, the Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a wholly owned subsidiary of Honda Motor Company Ltd., Japan and is located at Manesar, Haryana. The company's most well known brand is the Honda Activa that revolutionized the Indian scooter market in terms of design and features. The company exports scooters to the European Union. HONDA MOTORCYCLESMODEL CAPACITY Honda Shine 125 CC Honda Unicorn CC Honda Stunner CBF 125 CC Honda CBF Stunner FI CC HONDA SCOOTERSMODEL CAPACITY

16 Honda Eterno CC HONDA SCOOTERETTES/MOPEDSMODEL CAPACITY Honda Aviator 102 CC Honda Activa 102 CC Honda Dio 102 CC4. TVS Motor TVS Motor is a leading and trusted two wheeler company began with the vision of TVS Scooty the founder of the Sundaram Clayton Group, the late T.S. Srinivasan - to design, develop and produce an affordable moped for the Indian family. This vision was realized in 1980 when TVS 50, India's first two-seater moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. The company has been known for its ruggedness and reliability. TVS 50 was successful and it has smoothened the way for many successes for TVS Suzuki even before its launch in the market. The TVS 50 XL is especially designed for individuals who want economy fused with sporty looks. Recently new XL Super with a 70 cc high-tech Power Pack is all set to redefine the category of mopeds in the country. The Suzuki Samurai was launched for the time conscious urban commuter. The Max 100 R was engineered for those who demanded strength and ruggedness. Along with them all, Suzuki Shogun was for those who wanted raw power.tvs Motor has continually worked on innovation of the motorcycle segment along with two wheeler range. The Suzuki Shaolin, developed by TVS Suzuki is India's first 5-speed, 140 cc motorcycle. Another example of the company success is TVS Scooty, a60 cc Scooter which keep one step ahead of its time in India.TVS Motor has been coveted 2 IT awards, one of them is bagging the SAP ACE 2008award for Customer Excellence and the other one is 2008 Symantec South Asia Visionary Award. Along with this, it is the first company in the world to be honored with The Deming Prize for Total Quality Management. In September 2008, the company has got 19% growth for registering total two wheeler sales of 137,246 units. The company is the third largest two-wheeler manufacturer in India and ranks among the top ten globally. The company was the first in India to launch 2-seater 50cc moped and100cc Indo-Japanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty, TVS Centra and TVS Fiero are the popular bikes in Indian market. In all, team TVS has triumphed each and every race and rally in the country from the road to racetrack, with each of the TVS bikes being a winner. And each time the Team TVS has won on the track or off it; our customers have secured a better product for their personal transportation.

17 TWO WHEELERS>> MOTORCYCLES Suzuki Hayabusa 1300 Suzuki Intruder M1800R Suzuki GS 150RTVS Apache RTR FI TVS Centra TVS Fiero TVS Fiero F2 TVS Fiero FX Suzuki Max 100 Suzuki Max 100R Suzuki Samurai Suzuki Shogun Suzuki Shaolin TVS Flame TVS Victor TVS Star TVS Victor GLX TVS Star TVS Victor GX TVS Star City TVS Victor Edge>> SCOOTERETTES/MOPEDSTVS Scooty Streak TVS Scooty TVS XL TVS Scooty ES TVS XL Super TVS Scooty Pep TVS XL Super HD TVS Pep Plus TVS XL Super TVS XL Super HD Scooty Teenz Electric TVS Apache RTR TVS Spectra DX/AX AWAITED MODELTVS Taurus Fiero F35. Royal Enfield Motors Ltd. Established in 1955, Royal Enfield was the brand of the Enfield Cycle Company. Royal Enfield is one the oldest bike on the road. The company is well known for producing motorcycles, but they also produce bicycle, stationary engines, lawnmowers and rifle small parts for the Royal Small Arms Factory in Enfield. Royal Enfield Motors Ltd. has its headquarter situated at Thiruvottiyur, Chennai, Tamil Nadu, India. In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, and later merged with it in The annual turnover of the company is Rs.10 billion. The Eicher Group has a range of interests in the automotive industry, including small trucks, tractors, exports, automotive gears, management consultancy and cartography. The corporate philosophy of Royal Enfield Motors Ltd. is built around quality and unflinching loyalty to the customer, a few reasons why the legendary Bullet is not just a bike but a motorcycling icon. The ruggedness and reliability of the bike is endorsed by the army, the police, the paramilitary forces and over 500 institutions which form part of the die-hard customer base of the Bullet, dubbed the "Rajagadi", or royal vehicle. The innovative ideas of the Royal Enfield - Eicher nexus are exhibited in the new line of Enfield bikes and the global technological tie-ups. Royal Enfield has existing technical tieups with :- Criterion Engineers, UK for a new 5 speed transmission system.- DB Designs, UK for styling.- AVL, Austria for new engines.- FW Egli for high power engines for 535cc and 624cc.Royal Enfield Motors Ltd. operates out of 12 area offices, 16 depots, over 250 dealers and 150 authorized service centers in India. The company also exports its products to over 20 countries including Canada, France, Japan, USA,

18 Germany and UK. Royal Enfield Model TWO WHEELERS>> MOTORCYCLE Bullet 350 Bullet 500 Enfield Diesel Bullet Deluxe Bullet Electra Bullet Machismo Bullet Electra Bullet Electra 5SBullet Machismo 500 Bullet Std 12V Lightning 500Taurus Thunderbird Twin spark At the end we can say that all the above are giving a very tight competition to INDIAYAMAHA MOTORS in India. To overcome these competitors YAMAHA is constantly doing R & D about its product and market as well. We can classify these competitors into following groups according to their attributes and their competitive forces. S PFULLY GROUP A EDIVERSIFIED C I High Mobility Barriers, Extensive A Distribution & Product L Diversification I S High Mobility Barriers, Time A & Investment required to T GROUP restore outdated products, I B build cult image O GROUP C N GROUP D Low Mobility Barriers Investment SPECIALISED in Brand Promotion SWOT ANALYSIS A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan: SWOT Analysis Framework Environmental Scan / Internal Analysis External Analysis / / Strengths Weaknesses Opportunities Threats SWOT ANALYSIS FOR THE TWO WHEELER INDUSTRY Strength Established brands, Strong Brand Name

19 Weaknesses Fuel efficient Style statement Extremely price sensitive Convenient in heavy traffic Short PLC Cheap and affordable High R and D costs Easy and cheap finance availability Patents Good reputation among customers Threats Opportunities The Rs.1 Lakh car Growing premium segment Cut throat competition Increasing dispensable income Increasing number of players in the Environmental concerns market Exports increasing Rising raw material costs Very strong demand in the 100cc. Increasing rates of interest on segment dominated by limited finance players. SWOT ANALYSIS FOR INDIA YAMAHA MOTORS Strength Size and scale of parent company. Weaknesses Effective Advertising Capability Small showrooms. Committed and dedicated staff. Not much emphasis on aggressive High emphasis on R and D. selling. Experience in the market. Weak product diversity. Established brand. Established market channel. Power, Speed & Acceleration

20 Opportunities Threats Growing premium segment. Cut throat competition Increasing number of players in the Global expansion into the Caribbean & Central America. market Expansion of target market (include Rising raw material costs women). Increasing rates of interest on Increasing dispensable income. finance 1st mover advantage. OBJECTIVES CHAPTER 2: Research Methodology To know the customer s perception regarding launch of new bikes FZ & FZS by Yamaha.

21 To determine the customer s satisfaction regarding bikes and after sales service. To determine the factors influencing the choice of customers regarding bikes To know the market scenario of second hand bike industry. SCOPE OF THE STUDY This study is aimed at providing India Yamaha Motors with an insight into the success of FZ & FZS as well as the customer s response and awareness towards the brand, products and services of Yamaha. The data has been analyzed and presented in a simple and precise way on the basis of which pertinent recommendations have been made to the company to better the services, policies and strategies of the company in India SURVEY METHOD: The research approach used was survey method which is a widely used method for data collection and best suited for descriptive type of research survey includes research instrument like questionnaire which can be structured and unstructured. Target population is well identified and various methods like personal interviews and telephone interviews are employed. Types Of Research Quantitative research Quantitative research is generally associated with the positivist/post positivist paradigm. It usually involves collecting and converting data into numerical form so that statistical calculations can be made and conclusions drawn. Qualitative research Qualitative research is the approach usually associated with the social constructivist paradigm which emphasises the socially constructed nature of reality. It is about recording, analysing and attempting to uncover the deeper meaning and significance of human behaviour and experience, including contradictory beliefs, behaviours and emotions. Researchers are interested in

22 gaining a rich and complex understanding of people s experience and not in obtaining information which can be generalized to other larger groups. RESEARCH DESIGN This study is a mix of explorative and formal methodologies adopting monitoring and observing to study the dealerships in Saharanpur and communication to elicit responses from customers. This is a cross sectional study done during the months of June and July. For the customer satisfaction study a questionnaire was formulated containing close ended questions which were sent out for response through the internet and mainly through personal interviews of customers at Yamaha dealerships. This data was later analyzed using SPSS through performing the cross-tabulations on various involved variables. Results of this step formed the basis of the recommendations given to the company. To know the Yamaha reputation and sales promotion in motorcycle market, census method was chosen and all the dealership were individually visited in the area of Saharanpur, Bawa Auto Sales(Hero Honda), I did a market survey by taking open interviews to the dealers and brokers of the market. DATA COLLECTION Research included gathering both primary and secondary data. PRIMARY DATA - Primary Data was very crucial to collect so as to know various past & present consumer views about bikes and to calculate the market share of this brand in regards to other brands. Fresh primary data was collected by taking direct feedback from customer which involved face to face interview with the customer as well as through telephonic interview with the customer, all the FZ customer who visited the dealership showroom for the service of their bikes were questioned in order to find out the customer satisfaction level. SECONDARY DATA- are those which has been collected by someone else and which already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies websites.

23 LIMITATIONS OF THE STUDY This research is geographically restricted to Saharanpur only. Hence the result cannot be extrapolated to other places. The study is restricted only to the organized sector of two wheeler industry The seriousness of the respondents and their ability to justify their answers may also be a limitation. The sample size is small due to the specified reasons. Findings are based on sample survey. All interview questions are undisguised or direct. Hence there is a scope for the respondents to be biased or pretentious.

24 CHAPTER 3: Conceptual Decision Review Of Literature Research Paper on Two Wheeler Market in India The Indian two wheeler market has a size of over Rs 100,000 million. The Indian two wheeler segment contributes the largest volumes amongst all the segments in automobile industry. Though the segment can be broadly categorized into 3 sub segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooterettes and step thru s. The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well-known Japanese firms earlier. But most of the companies are now planning 100% subsidiaries in India. In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year The Euro emission norms led the existing players in the two stroke segment to install catalytic converters. All the new models are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced resulting in price reduction, which has aided in propelling the demand for motorcycles. Fierce competition has also forced players to cut prices in certain models. CURRENT SCENARIO:

25 Motorcycle sales grew by an annual average of 27% over f , and constituted nearly 66% of total two wheeler sales in F2002, up from just 24% in F1995. Average monthly motorcycle sales have increased five-fold since F1995 to almost 250,000 units in F2002. The current share of the leading three companies is shown in the pie chart. And this clearly shows that hero Honda is the current market leader with a 49% market share. Hero Honda has been an early entrant in the 4 stroke segment of the two wheeler industry. With a right mix of product styling and pricing the company helped garner a larger market chunk of the 4-stroke market as compared to Bajaj Auto. A shifting consumer preference towards motorcycles also enabled the fast growth of the company in the last few years. Hero Honda motorcycle sales jumped 40.6% in April at 135,961 units from 96,672 units it sold in the corresponding month last year. The change in product mix in favor of higher value products has resulted in improved realization for the company the growing popularity of the passion model appears to be the key factor behind improvement in unit realization. Taking into account the recent trend in performance, the company appears well positioned to retain its top position in the motorcycle market and also sustain the recent rate of growth. Bajaj auto ltd is the second biggest manufacturer of motorcycles. The companies recent indigenous launch in 4-stroke segment viz; the 150 / 180 cc pulsar which has practically snatched the market share of the bikes like Hero Honda CBZ, Suzuki Fiero, Lml adreno etc, and it appears that pulsar would rule this segment till the time there are some new launches in this segment by other manufacturers, for bajaj pulsar has been the major contributor for the rise in its motorcycle sales along with its other popular models such as boxer, caliber croma etc. well coming to the third largest share holder in the motorcycle segment which is the tvs motors, which has emerged as a victor after the Suzuki break up, riding high on the success, of it s motorbike by the same name. Tvs victor is the first indigenously produced motorcycle from tvs motors. Infact with a six week waiting period, even six months after its launch, tvs motors plans to double its production capacity. The motorcycle market can be further segmented on the basis of the price tags which are the economy, executive and the premium segments. Basically all the three leading companies have a presence in all of these sectors. Clearly, the race to the number one spot in the motorcycle segment has been a one sided one. But times are changing, Given the fact that bajaj is positioning itself at all feature and price points, it does have every model to satisfy the needs of a prospective motorcycle buyer, and also has the privilege of being the only one in the cruiser segment but except for the two bikes i.e boxer ct and pulsar no other Bajaj models seem to be on the line of prosperity and the

26 recently launched dawn by Hero Honda is a direct threat to the market of boxer ct price competitively at rs 37,000/- which is just rs 2,000/- more than the boxer ct but then again boxer ct already enjoys a vast market share and is very popular especially in the rural areas it will be a tough job for dawn to displace this bike from its current position a lot remains to be seen by the feedback that it receives from riders. The pulsar has taken the market by storm in the premium segment it has clearly displaced the CBZ and the other models of this segment and looks like the things will remain this way for some time but there are tough times ahead since Hero Honda plans to launch a new bike in this segment by the end of this year which means that there is a lot to look ahead from a consumers point of view. CURRENT POSITIONING: ECONOMY BOXER AT & CT AND CALIBER. DAWN, CD100, CD100SS, JOY. MAX 100, MAX 100 R EXECUTIVE CALIBER CROMA, PULSAR 150. SPLENDOR, PASSION. SAMURAI, VICTOR PREMIUM PULSAR 180. CBZ.FIERO BAJAJ HERO HONDA TVS Let us first identify the current market leaders in each category. In the economy segment Bajaj is the leader with 46% of the market share with boxer being the largest selling bike in this segment. In the executive segment Hero Honda is the clear leader with 67% market share with splendor and passion leading the market in this segment and will continue to do so in the near future well now we come to the most controversial segment which is the premium segment since the current market leader according to the sales of the past few months is CBZ but then pulsar has arrived and the consumer choice clearly shows that this place will be reserved for pulsar for some time as a counter attack hero Honda too would be launching a bike in this segment but it is too early to comment on that. KEY FACTORS AFFECTING THE SALES OF MOTORCYCLES: Government policy impact on petrol prices : petrol prices determine the running cost of two wheelers expressed in rupees per kilometer. Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. But with the change in the GOI policy to reduce the subsidy, the prices of petrol will remain constant at the current prices. Which will have a positive effect on two wheelers market. This trend would actually affect

27 positively the whole automotive industry. Improvement in disposable income: With the increase in salary levels due to entry of multinationals following liberalization process the disposable income has improved exponentially over the years. This will have a multiplier effect on demand for consumer durables including two wheelers. This is already witnessed in improved demand two wheelers. Implementation of mass transport system: many states have planned to implement mass transport systems in state capitals in the future. This will have a negative impact on demand for two wheelers in the long run. But taking into account the delays involved in the implementation of such large infrastructure projects, we expect the demand to be affected only five to seven years down the line. Availability of credit for vehicle purchase: The availability and cost of finance affects the demand for two wheelers as the trend for increased credit purchases for consumer durables have increased over the past few years. Well to sum it up on the whole there are great times ahead for the bike lovers in India. With the decision of companies like Honda to set up base in India, the consumers will have a wide range of choice and also the freedom to choose something more exciting than the usual. Posting flat growth of 0.14 percent in June 2015, the largest twowheeler seller, Hero MotoCorp sold 542,362 units (June 2014: 541,594). An official communication states As the industry had built up stocks due to the sluggish market, HMCL reduced inventories in Q1. The company s retails are currently better than dispatches, which

28 means that Hero has been working on reducing its accumulated stock at the dealership as well as the factory level. Hero rolled out two models Passion Pro and Xtreme Sports recently to boost its regional sales in the motorcycle portfolio. While the company has planned a number of launches during the next four-five months, it is also looking at adding a few new export destinations this fiscal. Honda Motorcycle & Scooter India has shown decent domestic growth of 7.24 percent during June 2015, but this has come on the back of its rising scooter sales year-on-year. The company, which had sold 309,374 units in June last year, sold an overall 331,782 units last month. HMSI s motorcycle sales are sharply slowing down and June 2015 s 112,132 bike sales are down percent (June 2014: 142,782 motorcycles). However, countering this fall in volume, its scooter portfolio has notched percent growth selling 219,650 in June 2015 (June 2014: 166,592). Notably, the company has, including its export volumes for Q1 FY , crossed one-million units mark for the first time. Between April-June 2015, HMSI has sold 1,056,810 units, which includes its domestic as well as export sales. The company, which has recently rolled out the 2015 editions of its Activa and Aviator scooter models, is increasingly focusing on making India its largest contributor to its global sales. At the launch event recently, Keita Muramatsu, president and CEO, HMSI and Honda Motor India, said: India is a focus market for Honda and it is significant that Honda s two-wheeler operations in India is the second largest contributor to Honda s global sales. Today, one in every four two-wheelers sold by Honda worldwide is from India. I am confident that given our continued investment and growth, we will become No. 1 two-wheeler market for Honda globally within the next 2-3 years. Honda s future growth in India will be co-driven by its scooter portfolio. Honda dominates this segment with every second scooter being sold today in India being a Honda. At the same time, Honda is expanding its production capacity foreseeing the future potential of automatic scooter demand. Our upcoming fourth plant will be the world s largest only scooter plant and will start operation at Gujarat in early Bajaj Auto, which is now witnessing the results of its multiple launches in the early months of this calendar year, registered total sales of 287,582 units (including exports) during June 2015, up 9.68 percent (June 2014: 262,202). This is thanks to the sales of its CT commuter model, which is seeing a surge in demand. TVS Motor Company sold 177,769 units in June 2015, up 4.69 percent (June 2014: 177,769). Surprisingly, the company recorded better growth in motorcycle sales than its scooter portfolio.

29 While its scooter sales grew 4.99 percent to 61,241 units in June 2015, from 58,328 units in June 2014, motorcycle sales grew by percent, increasing to 88,675 units in June 2015 from 76,734 units in June Meanwhile, the company, which is soon planning to enter into the midsized motorcycle segment, is tightly keeping its new product developments tightly under wrap. Banking on the growth of its scooter models, India Yamaha Motor registered total domestic sales of 51,432 units in June 2015, up by percent (June 2014: 40,666). The numbers are a sign of Yamaha s robust business plan and strategic customer engagement programs. We witnessed brisk growth due to our robust product line-up and new launches during the year so far. Our new Fascino scooter and 125cc Yamaha Saluto have been Also, the new range of Alpha, Ray and Ray Z scooters with Yamaha s next- generation Blue Core engine concept continues to be a fundamental growth driver for us, said Roy Kurian, vice-president Sales & Marketing, Yamaha Motor India Sales. Suzuki Motorcycle India sold 32,628 units, percent up (June 2014: 24,812). Atul Gupta, executive vice-president, SMIPL, said: Several factors have come together to propel us onto a consistent growth path. This is because of Suzuki s marketing efforts and also the perceived upswing in consumer mood. The aggressive marketing initiatives for the Gixxer have generated a lot of excitement and interest in Suzuki s flagship product.

30 Customer satisfaction A term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part 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. SIX COMPETITIVE ADVANTAGES THROUGH CUSTOMER SATISFACTION:

31 Customer satisfaction Profit Growth Corporate performance New product innovation One stops shopping Word or month Loyalty in crises Higher price Repeat buying CURRENT ISSUES INDIA YAMAHA MOTOR REPORTS 15% DOMESTIC SALES GROWTH IN AUGUST 2015 New Delhi, 01st September 2015: India Yamaha Motor Pvt. Ltd. announced that it has registered a growth of 15% in domestic sales in August 2015 as compared to the corresponding period last year. This can be attributed to the company's innovative ongoing customercentric activities, exciting product line-up and the addition of the YZF- R3 super sports model launched recently. Further, the company went aggressive on the dealership expansion drive across the nation. The company sold 61,440 units in August 2015 as against 53,242 units sold in August last year in the domestic market thereby registering a domestic sales growth of 15%. Commenting on the company's gradual growth, Mr. Roy Kurian, Vice President - Sales & Marketing, Yamaha Motor India Sales Pvt. Ltd. said, "Despite various factors like increase in input costs and weakening rupee causing industry figures to go sluggish in August, we have continued our growth which is also due to Yamaha's robust business plan and strategic customer engagement programs. For young buyers now, vehicle design, performance and features encourages purchase. Our new stylish Scooter 'Fascino' and 125 cc bike Yamaha Saluto have catered to such demands and indeed been key products in boosting our sales along with our fundamental growth