INTRODUCTION

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 a very strong focus on the technical department, the result of which can be seen with Yamaha comfortably leading the constructors championship in the Super bikes racing with Valentino Rossi and Colin Edwards as their riders. Yamaha has aimed 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 1825 yr. olds who are willing to try taking the not so much treaded path of buying the sports bike rather than a utility two wheeler. These 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 an opportunity and has grabbed it hands down.

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RESEARCH DESIGN
RESEARCH METHODOLOGY The report has been prepared on the basis of information collected from different sources. In order to achieve the objective of the project proper research method was applied.. After giving through brain storming session, objectives were selected and the set on the base of these objectives, A questionnaire was designed major emphasis of which was gathering new ideas or insight so as to determine and bind out solution to the problems. DATA COLLECTION SOURCE 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 feed back 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 some one else and which already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies web sites.

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RESEARCH APPROACH 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. SAMPLE DESIGN For the sales promotion study a census methodology was adopted and all the dealerships and brokers of that region were visited. For the customer satisfaction study a sample of 100 persons was chosen from the Yamahas dealership in Bellary. The sample was judgmental and methodology was non probability sampling Size of Sample Sampling technique Location from which samples were taken 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 customers 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. OBJECTIVES
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50 Judgmental (Non Probabilistic Sampling) Bellary

 To know the customers perception regarding launch of new bikes FZ & FZs by Yamaha. To determine the customers satisfaction regarding bikes and after sales service. To determine the factors influencing the choice of customers regarding bikes To collect the valuable suggestions from the customers.

LIMITATIONS OF THE STUDY This research is geographically restricted to Bellary 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.

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INDUSTRY PROFILE
AUTOMOBILE INDUSTRY TILL DATE The automobile industry is one of the biggest industries in the world. Being a major revenue and job generating sector it drives the economies of some of the superpowers of the world. In India the automobile industry has grown by leaps and bounds since the advent of the liberalization era the automobile industry and especially the two wheeler segment has grown by leaps and bounds. The liberalization has done away with primitive and prohibitive practices of licensing and restricted foreign investment have been done away with. The result of which was the entry of foreign players into the Indian market. The two wheeler segment was largely dominated by Automobile Products of India (API) and Enfield in the 50s. Later on towards the end of the 50s Bajaj Autos began importing Vespa scooters from Italian company Piaggio. In the following decades the automobile industry in India was mainly dominated by scooters with API and later Bajaj dominating the market. There were very few products and choices available as far as motorcycle is concerned and Enfield bullet and Rajdoot dominated the market. The 80s saw the entry of Japanese companies in the Indian market with the opening up of the market to foreign companies. Hero Honda and TVS Suzuki are companies formed in this era of market reform. The market was still predominantly scooter dominated and Bajaj and LML were the leading brands producing the products at that time. Scooter was viewed as a more family and utility friendly vehicle than motorcycle and hence was preferred.

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The Japanese companies not only collaborated with Indian companies to produce the already existing products but also brought in new technology as a result of which the ever conquering 100cc bikes which were extremely fuel efficient with 4 stroke engines were launched in India. These proved to be highly successful as they provided a cheap and affordable means of personal transport to all those who could not buy a car. The flourishing middle class took a great liking for these bikes and the bike sales in India began to grow exponentially year on year leading to Hero Honda becoming the leader in the two wheeler industry in India and the largest producer of two wheelers in the world. The post 90s era was the era of liberalization and weakening of restrictive measures. The government went on an overdrive to support the industry and all FDI regulations and licensing was abolished. 100% FDI was allowed in the automobile industry and the excise duty was also considerably reduced to its current level of 12% on two wheelers. All these factors combined with the rising fuel prices, the increasing dispensable incomes of households, easy access to finance, etc. have led to two wheeler industry becoming the backbone of the automobile industry in India. The two wheeler industry in India forms a major chunk of the automobiles produced in India. According to Society of Indian Automobile Manufacturers statistics for the year 2008 2009, two wheelers comprise 76.49% of market share among the vehicles produced in India. The production share of two wheelers is quite similar to the market share. The two wheeler industry comprises around 74% of the total automobiles produced in India. The SIAM data for the year 2008-09 states that 8,418,626
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two wheelers were produced during the year against a total of 11,175,479vehicles produced during the year. SEGMENTATION OF TWO WHEELER A Two Wheeler Sector Sub-Segmenting in the three Segments . 1. Motorcycle 2. Scooter 3. Mopeds

GROWTH PROSPECTS AND KEY DRIVERS OF INDIAN TWO WHEELER INDUSTRY The growth witnessed by the Indian two wheeler industry indicates the growing demand for low cost personal transportation solutions amongst the 300 million Indian middle class consumers. Despite this spectacular growth rate, the two wheeler penetration (number of two wheelers per 1000 inhabitants) in India remains lower than other Asian countries. This fact provides an opportunity for continued growth in the market. India has the lowest Penetration of two wheelers as compared to countries like Taiwan, Thailand, Malaysia, Vietnam, Indonesia and China. In the present scenario, growth in the two wheelers Industry will be driven by several factors Rise in Indias Young Working Population

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With the rising levels of per capita income of people, the Indian two wheeler market offers a huge potential for Growth. This growth is relevant in the light of the fact that 70 per cent of Indias population is below the age of 35 Years and 150 million people will be added to the working Population in the next five years. The number of women in the urban work force is also increasing; this will lead to the Growth of gearless scooters. Rapid Product Introduction and Shorter Product Life Cycle The last five years have witnessed a sharp increase in new product launches in the two-wheeler industry. It is estimated that close to 50 new products have been launched by manufacturers during this period, filling up all price points and targeted at various consumer segments. Inadequate Public Transport Systems in most Urban Areas The economic boom witnessed in the country and the increased migration to urban areas have increased the traffic congestion in Indian cities and worsened the existing infrastructure bottlenecks. Inadequate urban planning has meant that transport systems have not kept pace with the economic boom and the growing urban population. This has increased the dependence on personal modes of transport and the two wheelers market has benefited from this infrastructure gap. FACTORS AFFECTING THE MARKET Post 1991, the Indian two-wheeler industry comprising of motorcycles, scooters and scooterettes opened up tremendously. The Indian motorcycle industry has expanded at a 24% CAGR over the last five years, It Captured
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almost 80% of the market primarily at the cost of the scooter and Moped segment. The scooter segment though has witnessed a revival with the launch of scooterettes aimed at young women and adolescents. The two wheeler market can be segmented into three categories on the basis of price Entry segment (<35000), Executive segment (between 35000 and 45000) Deluxe (between 45000 and 65000) and Premium segment (above 65000). Motorcycles are now sold as a passion, experience rather than a product. New products are being introduced at a rapid pace and brands are gaining prominence. Thus there is an increased focus on the premium segment which has an increased scope for differentiation. Purchasing Power is relatively high with buyers becoming more discriminating. Reliability and economy have become more of a hygiene factor. Buyers now demand two-wheelers that fit their personality thus increasing the scope for differentiation and branding. Provision of financing through EMIs has provided a means to satisfy the need of possess a convenient and stylish mode of transport in the form of a two wheeler. This has resulted in higher growth in the 125-150cc segment With the introduction of Government policies such as reduction in excise duty from 16% to 12% and allowing for 100% FDI Barriers to entry has reduced. However, the investment required for setting up large distribution channels and service stations can be a major entry barrier. Another significant entry barrier is the brand building required. Thus, initially foreign players set up Joint Ventures with indigenous companies. After establishing
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their brand they have launched their own line of products. E.g. Honda with Hero Group and Yamaha with Escorts. Threat from Substitutes such as the Tata 1 Lakh car looms large over the two-wheeler industry. For the first time, a car has been positioned at a price point that fills the vacuum between a motorcycle and a low-end car such as the Maruti 800. Previously, the price of even a low end car (2.5 3 Lakhs) was too high to attract the customers from the entry and executive two wheeler segment. Since brand loyalty is lower for these segments vis--vis the premium segment, these segments may be threatened by the Tata car. Their buyers will consider the convenience and status associated with owning a car, which is reasonably priced and therefore a viable substitute. Rising Customer Expectations The growth witnessed by the Indian two wheeler industry has attracted a number of new entrants to the market and it is expected that the Indian industry will become more competitive in the future. The excess of products introduced in the past has also raised customer expectations with respect to reliability, styling, performance and economy. Inflation is a big factor that may play a part in moving the loyalties and aspirations of people away from the four to the much cheaper and economical two wheeler segment. Moreover, the constantly increasing prices of oil and increasing interest rates on finance are not helping the cause either. Environmental Concerns are also quite big on the agenda these days and do play a part in the preference of consumers choices. The rising global
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temperatures along with daily snippets in the national and international media about the thinning of ozone and imminent environmental disaster have all contributed to the making of a present day environmentally conscious consumer. Environmental and Safety Concerns The increasing demand for two wheelers will need to be managed to address issues relating to overcrowding of roads. Another problem is the insufficient infrastructure for inspection to ensure adherence to emission norms. As the industry grows, it is important to regulate the sale of used two wheelers in a more organised manner for which a mechanism needs to be evolved. Unregulated sale of two wheelers, especially in the rural areas, are likely to create issues related to emissions and safety of vehicles.

Creation of Distribution Infrastructure Leading companies need to ensure that on one hand they build adequate infrastructure in terms of dealerships and servicing stations in the urban areas and on the other ensure that their distribution infrastructure also reaches the rural areas Current Competition has intensified thus requiring greater branding and marketing. Also due to the presence of relatively undifferentiated products, advertising and promotions have gained importance. The product has moved from a commodity to a branded product. However, there is still tremendous

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growth potential especially in the rural markets due to the under developed road infrastructure for which motorcycles are highly suitable.

T he K ey P layers
Others, 5.8% Yamaha, 3.8% TVS Motors, 17.7% Hero Honda, 39.8% Bajaj Auto, 24.4%
Hyundai, 19.17 Others, 5.73

Honda Motors, 8.5%

Honda, 5.33 Tata Motors, 17.19 Maruti, 50.37

T w o w heeler

P assenger vehicle

C om m erc ial veh icles P ass eng er veh icle

T A T A M otors , A sh ok L e yland , S w araj M azd a,M ah in dra & Mrc e ahindra ,F o m otors, E ic h er M otors T A T A M otors , M aru ti U d yog , H ond a M otors , T oyata, S kod a, M ahin dra & M ahindra, D aim ler C hrys ler, H ind us tan M otors

T w o W heeler H ero H on d a, B ajaj A uto, H on d a M otors, T V S M otors , Y am ah aotors et ic M , K in T hree W heeler B ajaj A uto, iaggio dia P In

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COMPANY PROFILE
About India Yamaha Motor Pvt. Ltd. Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint venture with the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake as well, bringing the Indian operations under its complete control as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan. India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabad in Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domestic and export markets. With a strong workforce of 2000 employees, India Yamaha Motor is highly customer-driven and has a countrywide network of over 400 dealers. The company pioneered the volume bike segment with the launch of its 100 cc 2-stroke motorcycle RX 100. Since then, it has introduced an entire range of 2-stroke and 4-stroke bikes in India. Presently, its product portfolio includes Crux (100cc), Alba (106cc) and Gladiator (125cc). VISION To 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".

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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.

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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.

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OVERVIEW FOUNDED: CAPITAL: PRESIDENT: EMPLOYEES: PARENT: SALES: 2007) PARENT: 799,209 million yen (from Jan 1, 2007 to Dec 31, 2007) July 1, 1955 48,302 million yen (as of March 31, 2008) Takashi Kajikawa 46,850 (as of December 31, 2007) 9,019 (as of December 31, 2007) 1,756,707 million yen (from Jan 1, 2007 to Dec 31,

SALES PROFILE Sales (%) by product category (consolidated)

Sales (%) by region (consolidated)

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MAJOR PRODUCTS& SERVICES: Manufacture and sales of motorcycles, scooters, electro-hybrid bicycles, boats, sail boats, Water Vehicles, pools, utility boats, fishing boats, outboard motors, diesel engines, 4-wheel ATVs, side-by-side vehicles, racing karts, golf cars, multi-purpose engines, generators, water pumps, snowmobiles, small-sized snow throwers, automotive engines, intelligent machinery, industrial-use remote control helicopters, electrical power units for wheelchairs, helmets. Biotechnological production, processing and sales of agricultural and marine products and microorganisms. Import and sales of various types of products, development of tourist businesses and management of leisure, recreational facilities and related services. HEADQUARTERS: 2500 Shingai, Iwata-shi, Shizuoka-ken, Japan

CORPORATE PHILOSOPHY For society, for the world Yamaha works to realize our corporate mission of creating Kando Yamaha Motor is a company that has worked ever since its founding to build products defined by the concepts of high-quality and highperformance and light weight and compactness as we have continued to develop new technologies in the areas of small engine technology and FRP processing technology as well as control and technologies. It can also be said that our corporate history has taken a path where people
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are the fundamental element and our product creation and other corporate activities have always been aimed at touching peoples hearts. Our goal has always been to provide products that empower each and every customer and make their lives more fulfilling by offering greater speed, greater mobility and greater potential. Said in another way, our aim is to bring people greater joy, happiness and create Kando* in their lives. As a company that makes the world its field and offers products for the land, the water, the snowfields and the sky, Yamaha Motor strives to be a company that offers new excitement and a more fulfilling life for people all over the world and to use our ingenuity and passion to realize peoples dreams and always be the ones they look to for the next Kando.

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What is Kando? Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intense excitement that people experience when they encounter something of exceptional value. SWOT ANALYSIS FOR THE TWO WHEELER INDUSTRY
Strength Established brands, Strong Brand Name Fuel efficient Style statement Convenient in heavy traffic Cheap and affordable Easy and cheap finance availability Patents Good reputation among customers Opportunities Growing premium segment Increasing dispensable income Environmental concerns Exports increasing Very strong demand in the 100cc. segment dominated by limited players. Weaknesses Extremely price sensitive Short PLC High R and D costs

Threats The Rs.1 Lakh car Cut throat competition Increasing number of players in the market Rising raw material costs Increasing rates of interest on finance

SWOT ANALYSIS FOR INDIA YAMAHA MOTORS

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Strength Size and scale of parent company. Effective Advertising Capability Committed and dedicated staff. High emphasis on R and D. Experience in the market. Established brand. Established market channel. Power, Speed & Acceleration Opportunities Growing premium segment. Global expansion into the Caribbean & Central America. Expansion of target market (include women). Increasing dispensable income. Threats Cut throat competition Increasing number of players in the market Rising raw material costs Increasing rates of interest on finance Weaknesses Small showrooms. Not much emphasis on aggressive selling. Weak product diversity.

RECENT LAUNCHES
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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 suited for those who want elegance and power in one. It is designed 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 FZ-S include:

European international design

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Stainless steel body Aerodynamic muscular design High torque rate Carbon pattern meter console Latest graphics 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.97,500 (ex-showroom) across India. It boasts of the first liquid cooled 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.

CONCEPTUAL FRAMEWORK
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Consumer buyer behavior refers to the buying behavior 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 behavior. (Ramaswamy and Namakumari) It needs to be specified at the outset that there is no unified, tested and universally established theory of buyer behavior. What is available today, are certain ideas of buyer behavior. FACTORS INFLUENCING BUYER BEHAVIOUR A number of factors influence buyer behavior. They can be grouped under three broad categories. 1. Factors that are part of buyer as an individual. 2. Buyers social environment (group influence). 3. Information from a variety of sources. 1. Factors that are part of the Buyer as an individual An individuals religion and cultural background, his personality traits, self concept, his general endowments, his upbringing in short, his overall biodata play a crucial role in his conduct as a buyer/consumer. These factors can be grouped broadly into three categories: i. ii. Personal factors Cultural factors
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iii.

Psychological factors

I. Personal Factors Age, Education, Economic Position, Self concept An individuals 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 persons self concept and his concern about his about 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. Status is announced through various symbols like dress, ornaments, possessions and general lifestyle. The desire for self expression and self advancement is closely linked with social status. For several people, status is a major motive force guiding and shaping their life. Their concept of status decides what material possessions they should have. 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 dos and donts listed out by religion and culture impacts the individuals lifestyle and buying behavior.

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iii. Psychological Factors Beliefs, Attitudes, Motivation, Perception Just like the economic and social conditions, a mans 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. Buyers Social Environment (group influence) The buyer living in a society is influenced by it and is in turn influencing its course of development. He is a member of several organizations and groups, both formal and informal. He belongs to a family, 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 behavior. There are two broad types of group influences: i. ii. Influence of intimate group. 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
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lifestyles and the buying behavior of its members. Among 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 behavior 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
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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 behavioral conformity. Study of group influence on the individual buying behaviour will help the marketers to develop 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 products, 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 salesmens 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.
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In any case, a piece of information about the product is made available to him and it has some influence on his buying behavior. THE BUYING PROCESS

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.
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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 individuals faith and feelings towards a product. As a result of his awareness and comprehension, the consumer develops an attitude favorable or unfavorable towards the product. The purchase process will continue only if he develops a favorable attitude or a liking for the product. 5. Legitimization The buyer must be convinces that the purchase of the product is he legitimate course of action. This stage often stands as a barrier between a favorable 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 he purchase process. 6. Trial

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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 behavioral field in the buying process. 8. Post-Purchase Behavior The purchase leads to a specific post purchase behavior. 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 products or he may deliberately avoid positive stories about the competing brand.

DATA ANALYSIS AND INTERPRETATION

RESULTS OF THE CUSTOMER SURVEY
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The Age distribution in the sample Age 16-20 21-25 26-30 Above 30 No. Of Respondents 26 19 03 01
N OR o. f espondents 30 25 20 15 10 5 0 16-20 21-25 26-30 Above 30 N OR o. f espondents

Percentage 52 38 06 02

INTERPRETATION: Following points can be referred from the above pie chart The above pie chart is showing that the customers of FZS are mainly coming from the age group of 16-25 that is around 90%, as Yamaha claims that they generally target their customers who are between the age group of 18 to 25, because that people of this age group are passionate and are style freaks, So we can say that Popularity of Yamaha is available in the age of 26-30 (around 6%) also because of its reputation in the world market. The Marital status distribution in the sample Marital status Married Unmarried No. Of Respondents 05 45
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Percentage 10 90
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N Of R o. espondents 50 45 40 35 30 25 20 15 10 5 0 M arried unm arried N Of R o. espondents

INTERPRETATION: In this pie chart it is very much clear that 90% of the Yamahas customer is mainly the youth who are single, so Yamahas new launch FZS is mostly being accepted by the singles instead of family oriented people.

The Occupation distribution in the sample.

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Occupation Student Office employee Business person Others

No. Of Respondents 25 10 10 5

Percentage 50 20 20 10

No. Of Respondents 30 25 20 15 10 5 0 Student Office employee Business person Others No. Of Respondents

INTERPRETATION: Once again we found that Yamahas major customers are the students of colleges and schools which consists 50%, as they want something special, new, stylish, masculine and attractive and Yamaha is providing that in the form of FZS.

The Income groups distribution in the sample

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Income Upto 10000 10001-20000 20001-40000 40001-60000 Above 60000

No. Of Respondents 10 18 17 03 02
No. Of Respondents

Percentage 20 36 34 06 04

20 18 16 14 12 10 8 6 4 2 0 U 10000 pto 10001-20000 20001-40000 40001-60000 Above 60000 No. Of R espondents

INTERPRETATION: In the income group distribution we can analyze that customers of FZS are coming from the Middle income group people which is around 90% by including 10001-40000 slab of income group. It shows that Yamaha is placing their products in the appropriate price range. As the people of this income bracket can easily afford this Bike.

The Way of purchasing distribution in the sample.

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Purchased by Cash Loan

No. Of Respondents 28 22

Percentage 56 44

No. Of Respondents 30 25 20 15 10 5 0 Cash Loan No. Of Respondents

. INTERPRETATION: Here again we can prove that the products of Yamaha are in the acceptable price range, as we can see that purchasing way of the customers are leading in the CASH sector. Customers are easily affording the price of FZS; they are not feeling much problem with the amount of FZS. Todays customers are ready to pay for better facilities and technology and they feel that FZS deserves that price which YAMAHA is offering.

The Financing distribution in the sample.

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Paid by Family Self Others

No. Of Respondents 22 26 02

Percentage 44 52 04

No. Of Respondents 30 25 20 15 10 5 0 Family Self Others No. Of Respondents

INTERPRETATION: In this pie chart a very important thing can be referred that Indian Youths are not so much independent in the financial matters, still they depends on the family, as Yamaha claims that they target the people of 18-25 age group, but here we can say that they should promote such kind of advertisements where the Yamaha products can link to the family. Ultimately family is paying the amount so Yamaha should target according to family also, so that the view of the children and family shouldnt clash. Compared brands with FZS Compared Brands No. Of Respondents
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Percentage
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Yamaha Hero Honda Honda Bajaj

19 12 06 13
N Of R o. espondents

38 24 12 26

20 18 16 14 12 10 8 6 4 2 0 Yam aha H ero H onda H onda Bajaj N Of R o. espondents

INTERPRETATION: Majority of people is not comparing Yamaha FZS to any other product and the number of such people is around 38%, But the second view which we have found that FZS is getting a very tough competition Fr BAJAJ & HERO HONDA. BAJAJ has launched their new edition of Pulsar 220 at a very low price (around 70000 ex showroom price), which is the reason for the tough competition giving by BAJAJ. On the other hand HERO HONDA HUNK is also giving direct fight to the FZS because of its MILEAGE only. There are some more competitors which are stable at their market share in automobile industry. The choice of Feature which is most important in a bike Choice of feature Style/design Pick up No. of respondents 21 19
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Percentage 42 38
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New technology Quality

6 4

12 08

N of respondents o. 25

20

15 N of respondents o. 10

0 Style/design P up ick N technology ew Q uality

INTERPRETATION: If we see the trend of Two wheeler industry we found that earlier people were looking mainly towards the mileage of the vehicle but now In our research we collected data and found that now customers perception has changed and they are shifting towards the style, design & riding comfort of the vehicle, 42% customers have purchased FZS because of its Style & Design and only 38% people are looking for the pick up. So in a way we can say they Yamaha exactly changed the perception of Indian customers. They are trying to attract customers with new style, design or look of the bike and creating passion in the customers for the speed and power. First Information Source First Information Source Tvcf Family friends
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No. of respondents 28 05
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Percentage 56 10
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Newspaper Magazine Others

08 07 02
No. of respondents

16 14 04

30 25 20 15 10 5 0 Tvcf Family friends New spaper Magazine Others No. of respondents

INTERPRETATION: As we can see here the major promotional tool which is influencing the customers is TVCF which stands for Television Commercial, which is around 56%, after that the major source of awareness among customers, is Family/Friends. Magazine and newspaper consists 40% in our research. So here we can say that Yamaha should produce better advertisements like FZS and they should link their ads with the emotions of the customers so that the brand recognition by the customers will be for long time. The customers can still recall the punch lines of Bajaj and Hero Honda such as HAMARA BAJAJ or HERO HONDA DESH KI DHADKAN. YAMAHA should also use such kind of heart loving lines. Customer Perception regarding Yamaha Image after FZS Improvement Yes No. of respondents 42
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Percentage 84
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No

16

N . o re o d n o f sp n e ts 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 Ys e N o N . o re o d n o f sp n e ts

INTERPRETATION: This is a good result for Yamaha that once again they are creating place in the heart of the customers, after the discontinue of RX100 Yamaha has lost very big amount of customers in the last 10 years, but after the launching of FZS, Yamaha has improved their image among the customers. Our data is showing that 84% people are admitting that Yamaha has improved their image after the FZS and R15 launch, feedback which we have got from the customers were like that Yamaha has produced something new this time and very stylish and well designed product.. With Yamaha's continued thrust on technology, quality and manufacturing excellence and introduction of Global Yamaha standards in its operations, the customers have experienced the real Yamaha and have come closer to the brand.

FINDINGS

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 The customers of FZS are mainly coming from the age group of 16-25

that is around 90%, as Yamaha claims that they generally target their customers who are between the age group of 18 to 25, because that people of this age group are passionate and are style freaks, Popularity of Yamaha is available in the age of 26-30 (around 6%) also because of its reputation in the world market. 90% of the Yamahas customer is mainly the youth who are single, so Yamahas new launch FZS is mostly being accepted by the singles instead of family oriented people. Yamahas major customers are the students of colleges and schools which consists 50%, as they want something special, new, stylish, masculine and attractive and Yamaha is providing that in the form of FZS.
Customers of FZS are coming from the Middle income group people

which are around 90% by including 10001-40000 slab of income group.

The products of Yamaha are in the acceptable price range, as we can

see that purchasing way of the customers is leading in the CASH sector. Customers are easily affording the price of FZS; they are not feeling much problem with the amount of FZS. Indian Youths are not so much independent in the financial matters, still they depends on the family, as Yamaha claims that they target the people of 18-25 age group, but here we can say that they should promote such kind of advertisements where the Yamaha products can link to the family.

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 Majority of people is not comparing Yamaha FZS to any other

product and the number of such people is around 38%, but the second view which we have found that FZS is getting a very tough competition Fr BAJAJ & HERO HONDA. Now customers perception has changed and they are shifting towards the style, design & riding comfort of the vehicle, 42% customers have purchased FZS because of its Style & Design and only 38% people are looking for the pick up. The major promotional tool which is influencing the customers is TVCF which stands for Television Commercial, which is around 56%, after that the major source of awareness among customers, is Family/Friends. Magazine and newspaper consists 40% in our research. This is a good result for Yamaha that once again they are creating place in the heart of the customers, after the discontinue of RX100 Yamaha has lost very big amount of customers in the last 10 years, but after the launching of FZS, Yamaha has improved their image among the customers.

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CONCLUSION
After The Separation Main focus of Yamaha has been to Capture the Indian Market Through its Product Which are Best In terms Of style & Design and is trying to achieve the target of 14% which it has laid down for the coming years its Recent Launched Bike FZs & R15 have shaken the market leader Like Bajaj & Hero Honda & is giving them a tough competition & soon going Launch Few More Bikes in the market. But in a country like India where customer generally appreciates mileage it becomes necessary for a company like Yamaha which produces Bikes whose prices are towards the higher end to focus on other factors too which influence the consumer choice of Product like Prices , After sale services and Many more.

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RECOMMENDATIONS

SHOULD IMPROVE THE AFTER SALE SERVICES: During the survey we found that Yamaha is not satisfying their customers in after sales services, employees at dealership sometimes use harsh words and become rude to the customers, parts of the bike are not easily available in the market. This is the major drawback in capturing the market share so Yamaha should take some better steps to satisfy and retain their customers.

WEAK FOLLOW UP FROM DEALERSHIPS: We observed during the course of our studies that Yamaha was quite weak in following up with prospective customers. There was no communication from Yamaha showrooms asking the customers if and when they are willing to buy their bikes. Hero Honda, Bajaj and Honda showrooms were extremely attentive in this regard and perform maximum follow up on prospective customers.

MEASURES SHOULD BE TAKEN TO IMPROVE ITS DEALERSHIP: Yamaha which is trying to build a brand new image of a high tech and stylish brand of sports bikes should take appropriate steps to show it in their showrooms. Showrooms like Oswal Yamaha, and Shiva Yamaha were very small in size and do not reflect the quality and scale of Yamaha in the market. Shiva motors was very dirty ambience and customer will feel that company is not working good thats why they

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are not taking any actions toward their showrooms and this will definitely hamper the sales, so Yamaha should take care of these things.

POOR PROMOTIONAL CAMPAGIN: The Yamaha ads seen on electronic and print media are absolutely out of touch with the Indian culture and thought process. If we see that Bajaj and Hero Honda has produced a very good link with the Indian family and customers can easily recall their Ads by well know punch lines like HAMARA BAJAJ or HERO HONDA DESH KI DHADKAN-DHAK DHAK. Yamaha is also focusing on this as we can see the AD of YAMAHA ALBA. An Indian consumer irrespective of their income level has a soft corner for traditions and culture of India. Hence, all companies including market leaders like Hero Honda and Bajaj capitalize on this behavior of customers and design their ad campaigns keeping India in mind.

YOUTH ORIENTED PROMOTION: Yamaha claims that they target the customers of age group 18-25 but their ad never represents this so they should make such kind of AD where youth should taken in as centre of attraction. They should do this earliest to capture the market because vast majority of people depending on ads and friends as their chief sources of information about the products.

AGGRESSIVE SELLING: The Company should follow an aggressive selling concept. A non-aggressive selling concept which is clearly visible in its advertising campaign which does not hit on the customer rather aims to provide information in a subtle manner. These days they have hit on the right target as we can prove through our survey that people who purchased YAMAHA FZS, 54% people have seen the TVCF

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of Yamaha before purchasing the bike. Emotional advertising which is the norm in India and which is very successful is not followed.

INDIAN BRAND AMBASSADOR: The Companys brand ambassador is VALENTINO ROSSY earlier we had JOHN ABRAHAM too but now YAMAHA does not have any Indian brand ambassador as compared to its competitors like Hero Honda who have Hrithik Roshan doing their ads and M.S. Dhoni doing the job for TVS. It is necessary for Yamaha to have a brand ambassador from India to connect with the Indian customer.

VARIETY IS NEEDED TO BE PROVIDED: Yamaha at the moment has a very weak product portfolio and its products are not that visible in the market or displays in dealerships except the Gladiator and now R15. The lack of product range visibility in dealerships and in the media and advertisements is adversely affecting the brand of Yamaha. If a customer want to switch from one bike to another Yamaha is not providing them options so here Yamaha should work to maintain their loyal customers. Yamaha should maintain and produce the bikes in quarterly or half yearly so that customers can avail options.

BRAND EXPOSURE SHOULD BE INCREASED OR TO TAP THE NICHES : There is a large market of unsatisfied customers in India. This effort would be in the direction to capture the unsatisfied customers and who are willing to change their brands on bike replacement.

FOCUSSED ADVERTISEMENT ON PRODUCT USP: The maximum demand among customers constituting the target market of

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India Yamaha Motors is for the power and style features of bikes. Hence, the company should produce products keeping the above factors in mind. SAMPLE QUESTIONNAIRE QUESTIONNAIRE (For FZ customers) Contactcc: Date of purchase: 1. Name: 3. Marital status: a) married 4. What is your occupation? a) Student b) Office employee c) Factory employee f) other: ________ d) Shop owner e) Business Person 5. Monthly household income: a) Up to Rs.10,000 g) Above Rs. 100,000 b) Rs.10,001-20,000 c) Rs.20,001-40,000 d) Rs.40,001-60,000 e) Rs.60, 001-80,000 f) Rs.80, 001-100,000 b) single 2. Age: Place: Model:

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6. How did you buy the MC? a) Cash 7. Who paid for your MC? a) Self

b) Loan b) Family

[D/P:

] c) Others: cc:

8. Which model did you compare with? Model: a) Yamaha b) Hero Honda b ) Pick up d) quality c) Magazine c) Honda 9. What was the reason you finally purchased your Bike? a) Style/design c) New technology a) TVCF others

d) Bajaj

10. Please specify your source of awareness for your Bike? b) Newspaper d) Family/Friends e)

11. Do you think Yamaha has improved after FZS and R15? a) Yes b) No

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BIBLIOGRAPHY
1) 2) 3)

Phillip Kotler; Principles of marketing, 7th Edition; Pearson Publication. Saxena and Rajan; Marketing Management; Tata McGraw Hill; 3rd Edition Ramaswami, V.S. and Namakumari, S.; Marketing Management; Batra Satish & Kazmi SHH ; Consumer behaviour text & cases; 1999.
5) Gupta, S.P. and Gupta, M.P.; Business Statistics; 14th Edition; Sultan

Macmillan India; 2002. 4)

Chand Publications. 6) Robert W and Boockholdt, James L.; Factors Leading To change in consumer behavior: A Study of Managers Perspectives; Creativity Research Journal, 11(4), Page No. 245-307; 1998.

REFERENCES 1. The Yamaha India website; www.yamaha-motor-india.com 2. Overview of performance of the Indian Automobile Industry http://www.siamindia.com/scripts/IndustryStatistics.aspx

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