Yamaha Motor Monthly Newsletter
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1 Yamaha Motor Monthly Newsletter Introducing new forms of mobility at the 43 rd Tokyo Motor Show 2013 Spotlight: Creating New Demand March 17, 2014 (Issue No. 15)
2 Creating New Demand Cultivating new user groups with uniquely Yamaha products Ever since our corporate founding, Yamaha Motor Co., Ltd. has pursued Monozukuri (engineering, manufacturing and marketing) with innately Yamaha qualities by proposing innovative concepts, creating outstanding technologies and expressing Refined Dynamism through our designs. As a company, we also have a long history of creating new demand in a wide variety of business fields through activities that propose entirely new values and lifestyles. In this month s issue, we will introduce three examples of Yamaha Motor s demand-building process that have touched people s lives and shaped our company. The Passol Creating demand among women by transforming the common concept of a commuter bike In 1974, shortly after Hisao Koike succeeded Yamaha Motor founder Genichi Kawakami as the company s second president, he established a new base for product creators in Tokyo with the desire to give birth to completely new values that will connect us to the Yamaha of tomorrow. The first assignment he gave the creator team was to create a new vehicle with Yamaha uniqueness that would target primarily female users. Japan was in the midst of rapid economic growth at the time and it was bringing many women out of the home and into their communities for work, study and daily errands. These women wanted a commuter vehicle that gave them a larger range of mobility than a bicycle and was also stylish and convenient to use. The proposal that the creators came back with after conclusive market surveys was a gentle vehicle that would naturally make women want to get out and about in their communities and society at large. At the time, there were a few motorcycles on the market that were billed as for women, but they were fundamentally no different from a normal motorcycle in that one had to straddle the frame in order to get on and ride. So, the creator team proposed a new style of bike that allowed women to ride it seated Yamaha Motor Monthly Newsletter 2
3 Scooters that can be ridden with the legs together and have an automatic transmission are now the new standard for commuter models around the world and demand is growing (the CYGNUS RAY at India s 12 th Auto Expo 2014) with their legs together, even when wearing a skirt. Taking on the proposal, the development teams set about working to bring to market a model that was vastly different from anything they had built before. After considerable trial and error, the result was the Passol, a step-through style scooter. It featured a flat footboard made possible thanks to a newly designed compact engine, an automatic transmission that made the bike run smoothly simply by twisting the throttle, right and left handbrakes that were operated like a bicycle s, a fully covered body with a bright color scheme and stylish design that hid all the bike s mechanical parts, a chassis that was light and compact enough to make the bike easy to handle even for people of smaller physiques, and more. The Passol was just the right vehicle for a quick shopping trip, for running errands around the neighborhood or commuting to school. It was a two-wheeler for a new generation of women that overturned the image of motorcycles as a vehicle for males or business-use, and it quickly became a vehicle that many women wanted to own. The Passol s success wasn t due solely to its product qualities, however. The free motorcycle license courses that were offered through the cooperation of Yamaha dealers around the country quickly changed motorcycles and the dealerships where they were sold from something far removed from women s lives into something more approachable and familiar to them. Yamaha Motor also staffed the Passol production lines at the factory entirely with women employees, and was then able to make an appeal for this new product as a vehicle made by women for women. Thanks also to promotions including ads and TV commercials featuring a popular actress and test-ride programs at dealerships, the Passol quickly became a hit product far exceeding any expectations from the year of its release in Following the Passol s success, Yamaha introduced new step-through models one after another. Once Yamaha had succeeded in tapping into the enormous potential customer base of women-centric family users, the other motorcycle manufacturers quickly followed suit by releasing similar models. In this way, scooters rapidly developed into the new standard for small-displacement commuter bikes. Developed in Japan, this type of Monozukuri that proposed innovative concepts and these new methods of customer communication eventually spread to Taiwan, China and then on to ASEAN countries and India. Today, many people in these countries use and love Yamaha models like the MIO J, FINO and CYGNUS RAY. In 2014, Yamaha Motor will be releasing a leaning multi-wheel vehicle (currently under development) with the aim of creating yet another new market for commuter vehicles. Yamaha has also pioneered the development of large-displacement scooters with sporty performance in the Majesty and TMAX. These models generated new demand among middle-aged and elderly users in Japan and established the new category of automatic sport bikes in Europe The PAS A new idea to create demand among users without licenses After overturning the idea that motorcycles were vehicles for men and opening up a whole new potential market among women with the Passol, Yamaha Motor sought to create a completely new market by targeting people without a motorcycle or automobile license. This resulted in the PAS electrically power assisted bicycle that uses an electric motor to automatically add a power assist when the rider applies force to the pedals. Yamaha Motor Monthly Newsletter 3
4 In order to develop new demand among customers with no previous contact with the Yamaha brand, the PAS electrically power assisted bicycle was launched in 1993 as a world-first product and did not require a license or helmet to ride At a glance, the PAS seems little different from a regular bicycle. But, in the pedal crank area, it mounts the Yamaha Power Assist System consisting of an electric motor, electronic control system and a battery, and the switches to operate it, etc. The sensor-equipped system detects the force applied to the pedals by the rider and responds with a power assist from the motor. In accordance with the regulations specified in Japan s Road Traffic Act, the system works to precisely apply up to twice the force applied by the rider up to a speed of 10 km/h. As the bicycle s running speed increases, the assist ratio gradually decreases; when the bicycle reaches 24 km/h, the system provides no assist at all. In other words, it gives a strong power assist at times when it is needed, such as when first starting out, when pedaling uphill or into the wind, or when carrying heavier loads, but there is no worry of reaching excessive speeds. When the assist is activated, it gives the rider a feeling as if someone was giving them a gentle push from behind. What s more, the PAS is operated in essentially the same way as a regular bicycle. So, when the first PAS appeared, it was a revolutionary product that could be used easily by almost anyone, regardless of age or gender. However, there were still some issues that had to be dealt with before it could be officially released and marketed. In Japan at the time, there was no vehicle category that the PAS fit in from a legal standpoint. So, Yamaha began negotiations with the related government agencies, explaining that the PAS was an electrically power assisted bicycle, an extension of the bicycle and should not require an operator s license or helmet to ride, and that it brought greater convenience to people s lives, contributed to energy-saving and helped reduce exhaust emissions. In 1993, those efforts succeeded and the PAS was officially classified as a type of bicycle. This recognition led to the birth of an entirely new type of vehicle the world s first electrically power assisted bicycle. Ever since the initial product launch of the PAS, Yamaha Motor has continued to lead the market as the pioneer of this new category by building models that are lighter, more compact and packaged with increasingly sophisticated functions. When the PAS was first sold, its market was primarily among the elderly, but use has now spread to include housewives with small children, people commuting to work or school, or use in leisure or business. In 2013, the 20 th anniversary year of the PAS, there were approximately 4.9 million (including non-yamaha brand models, Yamaha survey figure) of these bicycles in Japan alone a product that didn t exist before Yamaha pioneered the category. True to our slogan of Always look to Yamaha for new things, we continue to bring more and more new offerings to the This PAS model clears requirements as a model for carrying two young children. With the increasing participation of men in child-raising in Japan today, models with coloring that appeals to both men and women are being marketed market with high-quality products in a rich line of variations. Furthermore, we are strengthening our business of supplying electrically power assisted bicycle system kits to bicycle makers in European countries like Germany and the Netherlands to further boost sales. Promoting the Yamaha brand by getting people to experience the value in our products With the Passol, Yamaha supported many women s first encounters with a motorcycle by organizing test-ride events and riding courses to give them an experience of the Yamaha Motor Monthly Newsletter 4
5 value in the product. Another activity that took that concept one step further is our Parent-Child Riding Classes. These classes are for children old enough to ride a bicycle and are taught by specially trained instructors who, with the help of the children s parents or guardians, teach the children the basics of riding a motorcycle. The goal of these classes is to give children an experience of the value of motorcycles through the sense of accomplishment and fun they feel once they can ride a motorcycle and to promote the spread of the Yamaha brand. These activities can be expected to contribute to the development of demand in the long run. While these classes for children already have a long history in Japan, the first overseas program was launched in Russia in The instructor who was sent to Russia from Japan to teach the classes was surprised to find that many children had never even ridden a bicycle before since the This YSRS for Kids event held in Indonesia in 2013 turned out to be the largest in Yamaha Riding Academy history with some 500 children getting their first experience of learning to ride ground in Russia is covered in snow for much of the year. He had to begin by teaching them the very basics such as foot placement to keep the bike upright and how to keep their balance as they rode. But, he was equally impressed by how quickly they absorbed everything. He recalls, A child s ability to adapt and learn is truly amazing. At first, they were so nervous and their faces were so tense. Despite crying and falling every now and then, they quickly made progress and were soon having a lot of fun on the bikes. I m so glad I went. Meanwhile, in India, in conjunction with the launch of the new CYGNUS Alpha scooter model targeting the shared family-use market, the Yamaha Children Safety Program (YCSP) has been implemented from 2014 to teach children about road and traffic safety in ways that make it fun for them. As part of this effort, a naming contest was conducted to solicit ideas from the public for the program s cute mascot character. The name Zippy was chosen from among the applications and this mascot character is currently being used to make the Yamaha brand a more familiar and welcome presence. Yamaha s ideal is not simply to sell products but to sell the value that products can create in people s lives; our activities based on this ideal are not limited to our motorcycle business. In the markets of Africa where Yamaha products are marketed by our Overseas Market Development Operation Business Unit (OMDO), we have been providing assistance for the development of local fishery industries with the support of the Japanese government and the Japan International Cooperation Agency (JICA) by offering instruction in the efficient fishing methods of Japan s coastal fishing industry as part of our efforts to introduce the use of outboard motors since the 1970s. In addition to fishing methods, instruction about how to preserve, process, package and sell a catch was made available in leaflets and the Fishery Journal booklet periodically published by Yamaha Motor. This was done in order to provide know-how to supplement our products as a package in a business style that helps establish local industries that create value for society. The Fishery Journal provides practical information and know-how from Japan about fishing methods and techniques for preserving and processing a variety of fish and shellfish, etc. Although it is no longer in publication, all the issues are available for viewing online at the Fishery Journal Digital Archive Today, Yamaha is introducing a wide range of products like generators, water pump systems and industrial-use unmanned helicopters in markets around the world along with know-how tailored to local conditions and needs in order to help users make productive use of these products; it is this package set that is expanding demand across the globe. Yamaha Motor Monthly Newsletter 5
6 Message from the Editor The Auto Expo was held in Delhi, India in February and the Japan International Boat Show was held in March. Have you checked out the Events page on the Yamaha Motor global website? You can find content uploaded directly from the venues of exciting shows happening all around the world. You can enjoy a sense of the unique atmosphere of each show in not just the products on display, but also in the way the countries climates, atmospheres and even smells and textures at the show venues seem to come across vividly on the screen. You can also read news releases and watch YouTube videos uploaded from Yamaha Motor companies in countries all over the world at the Global News Center page. Yamaha products are loved and used in over 200 countries and territories worldwide. The many different faces of Yamaha Motor that can be seen around the world is one of our points of pride. If you get the chance, try comparing how our products are used across different areas sometime! Mariko Saito Global PR Team, Public Relations & Advertising Division, Yamaha Motor Co., Ltd Shingai, Iwata, Shizuoka, Japan TEL FAX saitoumar@yamaha-motor.co.jp *Prior to any use of the article(s) and photographs contained within this newsletter, please contact me. Yamaha Motor Monthly Newsletter 6
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