SUMMER TRAINING REPORT ON INSTITUTIONAL SALES & MARKET MAPPING
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION BATCH: 2008-2010
SUBMITTED TO MR. S.B. DUBEY Faculty Guide
SUBMITTED BY MAHIPAL SINGH MBA-3rd SEM
INSTITUTE OF MANAGEMENT & TECHNOLOGY (Approved by AICTE & Affiliated to Maharishi Dayanand University, Rohtak) Near Sai Dham, Tigaon Road, Faridabad – 121002 (NBA – AICTE Accredited Institution)
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DECLARATION
I, “Mahipal Singh” roll no…………….class……MBA …3ND SEM…….. of the institute of management and technology, faridabad nearby declare that the summer training report entitled, “instutional sales and marketing mapping of Yamaha” is an original work and the same has not been submitted to any other institute for the award of any other degree. A seminar presentation of the training report was made on …………..and the suggestions as approved by the faculty were duly incorporated.
Presentation in charge (Faculty) signature of the candidate
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ACKNOWLEDGEMENT
First and foremost, my sincere thanks to Mr. S.B. Dubey [Faculty Guide of IMT, Faridabad] who motivated us to take summer internship assignment. Without his continuous help and enthusiasm, the project would not have been materialized in the present form. She constantly inspires me to come with new ideas and take responsibilities and this project was no exception to this inspiration I am extremely grateful to Ms. Archana Verma (Sr. Manager) for guiding and supporting me throughout my training at Yamaha Motors. Their helpful supporting attitude and willingness to teach has been a great help in my successfully completing the assigned project. My experience there has been immeasurable and working under their guidance was very useful.
(MAHIPAL SINGH)
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PREFACE
The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customer’s grievances. Moreover, the company should always be ready to make necessary changes according to the requirement in order to attract more customers so as to maintain a substantial growth in the market. The topic given to me was:
“INSTITUTIONAL SALES & MARKET MAPPING OF YAMAHA”
I have tried to put my best efforts to complete this task on the basis of skill that I have achieved during my studies in the institute.
I have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please ignore it.
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TABLE OF CONTENTS Chapter 1. 1. Executive summary 2. Conceptualization (a) Industry profile (b) Yamaha motors company profile 3. Review of existing literature (a) History of Yamaha motors (b) Yamaha management principles 4.
Objective of the study
5.
Hypotheses
Chapter 2 1.
Research mythology (a) Profile of the organization (b) Swot analysis (c) Primary & secondary objective (d) Research design (e) Sample size (f) Data collection (g) Yamaha motors
2.
Limitation of the study
Chapter. 3 1.
Data analysis & interpretation
Chapter. 4 5.
Recommendation
6.
Bibliography
7.
Appendices 5
EXECUTIVE SUMMARY Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of
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the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. There is a large untapped market in semi-urban and rural areas of the country. Any strategic planning for the two¬-wheeler industry needs to identify these markets with the help of available statistical techniques. Potential markets can be identified as well as prioritized using these techniques with the help of secondary data on socio-economic parameters. For the two-wheeler industry, it is also important to identify the target groups for various categories of motorcycles and scooters. With the formal introduction of secondhand car market by the reputed car manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry needs to upgrade its market information system to capture the new market and to maintain its already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban areas also requires more focused attention. It is also imperative to initiate measures to make the presence of Indian two-wheeler industry felt in the global market. Adequate incentives for promoting exports and setting up of institutional mechanism such as Automobile Export Promotion Council would be of great help for further surge in demand for the Indian twowheeler industry. The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, and pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace.
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Japan’s Yamaha Motor Company, one of the biggest motor bike companies in the world, faced numerous difficulties after the Asian financial crisis. As currencies, stock markets and asset values in many countries plummeted, there was a major decline in the earning and purchasing powers of consumers. Yamaha’s motor bike segment accounted for nearly 60% of its total sales but the company’s market share in the Asian nations declined rapidly from 18% in 1999 to 11% in 2003. Yamaha Motor India stopped production for five to seven days each in March and April due to slackening demand. The company is planning to continue with 7-10 no-production days every month for the next couple of months. The move is a sign that Yamaha Motor India’s performance has not improved since its managing director, T Ishikawa warned staff that the management was ready to shut Indian operations if the company’s revival did not go as intended. Ishikawa had said, the top management is closely monitoring two indicators (new marketing strategy and productivity of manufacturing) if either does not go as intended, the management is ready to shut down the operation in India. Currently Yamaha market share in India is 4% .Despite of new, Stylist and sportive models Yamaha is not able to increase its sale in India. Yamaha has great challenge in front of him to increase its share in India automobile market. There are so many competitors in Indian automobile industries such as Bajaj, Honda, Hero Honda, Suzuki and TVS etc. Biggest rival is Hero Honda which acquire largest market share in Indian market, is the biggest competitor of Yamaha. However the real challenge for Yamaha is to spread the awareness about its new product. Find out the suitable method of advertisement to make people know more about the Yamaha. Yamaha has target the youth who has passion about speed and style and look. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler 8
industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. Yamaha has set the target of increasing its market share to 15% by 2010. Yamaha brand is globally known for sportive look, young and high performance. “It has not worked in India that led Yamaha market share crashing from a peak of 27% in 1993 to a low of 2-3%. Now, Yamaha has involved in positioning the brand on the lines of global pattern and accordingly introduced new bikes. The research intends to explore the reasons which are keeping Yamaha from being not successful in the Indian market. The data collected has been obtained from primary and secondary means. Primary means data collected from questionnaire and one to one interaction. Secondary means include information available on the internet, magazine and articles.
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INDUSTRY PROFILE Yamaha Motor Company, founded as a motorcycle manufacturer on July 1, 1955, have worked, since beginning, to build products that stand out for their quality wherever they are sold. Over the years, the company has diversified into a number of areas of business. In the year 1960, they began manufacturing powerboats and outboard motors. Subsequently, they have made their proprietary engine and fiberglass-reinforced plastic (FRP) technologies. Today, the company has extended their products from land to sea and even into the skies, with manufacturing and business operations that include motorcycles, marine and power products to automotive engines, "intelligent" machinery and even unmanned helicopters. Yamaha Motors delivers a wide range of automobile products, a few of them being motorcycles, scooters, electro-hybrid bicycles, boats, fishing boats, outboard motors, racing karts, golf cars, multi-purpose engines, generators, water pumps, snowmobiles, industrial-use remote control helicopters, electrical power units for wheelchairs, helmets. Yamaha Motor India (YMI) was incorporated in India in August 2001 as a 100% subsidiary of Yamaha Motor Corporation (Japan), the parent company. But it operated in India as technology provider for almost two decades before incorporation. The company's manufacturing facilities in India comprises of two state-of-the-art plants. One at Faridabad (Haryana) and the other at Surajpur (Uttar Pradesh). Presently 10 models roll out of the two Yamaha Plants. The infrastructure of the two plants support productions of motorcycles and its parts for both, the domestic as well as oversees market. The composition of the two-wheeler industry has witnessed 11
sea changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total twowheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment's gaining importance during this period is exhibited by the Figures 1, 2 and 3 depicting total sales, market share and gross turnover during the period 2002-03 through 2008-09. Graph 1: PRODUCTION OF MOTORCYCLES IN INDIA (figures in quantity terms)
Table 1: PRODUCTION OF MOTORCYCLES IN INDIA (figures in terms of quantity) 2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
20078-09
5,076,221 5,622,741 6,529,829 7,608,697 8,466,666 8,026,681 8,418,626
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Source: Society of Indian Automobile Manufacturers (SIAM) home, industry statistics, production trends website as accessed on 23rd June 2009. URL: www.siamindia.com/scripts/production-trend.aspx Table 2: DOMESTIC MARKET SHARE (AUTOMOBILE INDUSTRY) FOR YEAR 2008-09 Domestic Market Share for 2008-09 Passenger Vehicles
15.96%
Commercial Vehicles
3.95%
Three Wheelers Two Wheelers Graph 2:
3.6% CATEGORY-WISE
MARKET
SHARE
76.49% (AUTOMOBILE
INDUSTRY) IN YEAR 2008-09
Source: Society of Indian Automobile Manufacturers (SIAM) home, industry statistics, production trends website as accessed on 23rd June 2009. URL: www.siamindia.com/scripts/production-trend.aspx
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Table 3: TURNOVER OF AUTOMOBILE INDUSTRY FOR YEAR 2002-03 TO 2006-07
Turnover of Automobile Manufacturers(In USD Million)
Year
(In USD Million)
2002-03
14,880
2003-04
16,544
2004-05
20,896
2005-06
27,011
2006-07
34,285
Graph 3: TURNOVER OF AUTOMOBILE INDUSTRY Turnover of Automobile Industry 2002-03 to 2006-07
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Source: Society of Indian Automobile Manufacturers (SIAM) home, industry statistics, production trends website as accessed on 23rd June 2009. URL: www.siamindia.com/scripts/production-trend.aspx
The Cubic Capacity (cc) of a vehicle is defined as the volume of the cylinder between the piston top dead center and bottom dead center. Cubic capacity is expressed in cubic centimeters or cubic inches. The vehicles in the two wheeler segment have been demarcated on the basis of Cubic Capacity. The different capacities are: less than 100cc, 100-150cc, and 150-180cc and greater than 180cc. YAMAHA-MOTORS COMPANY PROFILE Yamaha corporate identity: Yamaha motors corporate mission is “We Create Kando: Touching your heart” ‘Kando’ is the Japanese word to express feelings of excitement and deep satisfaction. For them the forms that these feelings can take are as varied as the peoples all around the world for experience then with Yamaha products in their lives and work on land, on sea and in air. And as their progress and the concerns of the environment change, the standard by which they measures true satisfaction in their lives has also changed. That is why at Yamaha motors they know that they must constantly evolving as a company. And therefore they are passionately dedicated to the challenge of being a company that creates ‘Kando’. At Yamaha Motor, are committed to creating a higher level of customer satisfaction using their ingenuity and enthusiasm to enrich people’s lives. 15
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REVIEW OF EXISTING LITERATURE In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark. The first automobile in India rolled in 1897 in Bombay. Within two-wheelers, motorcycles contribute 80% of the segment size. India is the largest three-wheeler market in the world. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. Automobile put the horses on rest and changed the way of living for mankind, is a wheeled passenger vehicle that carries its own motor. The term 'automobile' is derived from Greek and Latin words. 'Auto' in Greek means 'self' and 'mobiles' in Latin means 'movable.' The phrase refers the fact that it 'moves by itself.' Automobile used to be also addressed as 'motor wagon' or 'horseless carriage'. The first automobile rolled in India in 1897 in Bombay (now Mumbai). Soon number of cars increased on the roads and it became the status symbol until Maruti entered the market. The first automobile in India rolled in 1897 in Bombay. Within two- Wheelers, motorcycles contribute 80% of the 17
segment size. Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. There fore there is very vast scope of the two-wheelers in Indian market as it has been already mentioned above that in India there are around 100 people per bike. So among the remaining 99 people if we target only 1 among them the sales will reach the sky. Even if we target 1 in every 1000 people in India there is very huge scope of the market share growth. So we will have to make the strategies and the target to reach those customer, who are willing to but new bike and this can be done through market mapping i.e. to find out that in which area the demand can be created and who can be our targeted customers. As it can be very profitable for the company’s sales growth. A BRIEF HISTORY OF YAMAHA MOTORS 1960 TO 1969 Secured license under technical collaboration with CEKOP, Poland. Obtained 23 acres of land for separate factory. 18
Assembly and partial manufacturing started in Plant 1. Introduction of Motorcycles with technical collaboration with M/s CEKOP of Poland. Machinery was installed in the new building. Manufacturing activities shifted from Plant 1 to the present building of YMI Faridabad in the year 1965. 1970 TO 1979 Introduction of scooters. GTS a small Motorcycle was introduced. Entered in a technical collaboration with Yamaha Motors Company of Japan for manufacturing of 350cc Motorcycles. 1980 TO 1989 R&D section shifted to 19/2 Mathura Road, Faridabad. Letter of intent obtained for manufacture of 100cc Motorcycles. Launched 350cc Motorcycles in the markets all over India. On identified scale, manufacturing facilities of various components were improved upon by introduction of 4th generation machinery equipments. To cater to the urban population demand for a few efficient and sleek looking Motorcycles, 175cc Super-D Model was introduced. Surajpur plant was established in NOIDA.
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Started manufacture of RX-100 cc Motorcycle with technical collaboration with Yamaha Motors Company of Japan, at Surajpur plant situated at 30 km from Delhi in UP state. Installed ‘UYEMURA’, automatic electroplated plant. Implemented Incentive Scheme to improve upon productivity. Concentrated on product improvement and manufacturing facility. Introduction of Indicators the existing 175cc Rajdoot Motorcycles. 1990 TO 1999 Up-gradation of the 175cc Motorcycle by introducing newer technology and styling such as bringing in of Excel-T with Telescopic front forks/modern style. Electronic Ignition system of Rajdoot launched. ISO 9001 was conducted. Joint venture with Yamaha Motors Limited Japan. Launched of Yamaha RXZ. YBX 4 – stroke Bi- wheeler was launched 2000 TO 2008 The share of Yamaha Motor has increased to Yamaha 74% and Escorts 26%. YD125 4- stroke Bi–wheeler was launched. YMEL became a total subsidiary of YMC and its name changed from YMEL to YMI.
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Launch of Enticer 125 cc & Libero 106 cc (4 stroke) Motorcycle Launched a state of art gladiator in the 125cc category and re invented its brand value. Launched YZFr15 and marked its entry into 150cc category.
YAMAHA MANAGEMENT PRINCIPLES Surpassing customer expectations: They remain keenly aware of their customers’ evolving needs and provide them with quality products and services of exceptional value that surpass their expectations. Establishing a corporate environment that fosters self esteem: They believe in nurturing and empowering their employees to the fullest. Whilst cultivating their employees’ creativity and all-round abilities, they have also established an equitable system of evaluation and rewards to encourage their people to strive towards newer benchmarks. Fulfilling social responsibilities: As a good corporate citizen, they continually strive towards creating a better social as well as natural environment. IN ORDER TO ATTAIN TOUCHING YOUR HEART MISSION, THEY WORK BY THE FOLLWING PRINCIPLES. Innovation: Their goal is to enhance the enjoyment that people find in mobility.
AtYamaha,they 21
constantly attempt to innovate to make this possible and continue their pursuit to seek an ideal harmony between people and machines and create new thrills. Challenge:
Fresh
challenges have always helped them open up new world of excitement for them, as well as, for their customers. This is readily evident from Yamaha’s history and the many ‘Firsts’ that go along with Yamaha name. It is the same spirit of challenge that fuses the Yamaha world, year after year, even today. Emotion: The products they provide- motorcycles, water and recreational vehicles- add to life’s fun and excitement. At Yamaha they are committed to ignite the sense of adventure in their customers, and support people who take the challenge for seeking new heights. 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 22
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
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Objectives 1. To critically analysis sales and marketing mapping in Yamaha motors India Ltd. 2. To gain familiarity with the organizational enviourment & the work culture existing in the organization. 3. To study the personal enviourment. 4. The purpose of the study is to evaluate the impact of he sales &market mapping carried out in the organization
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HYPOTHESIS For the exploration of problem (if any) with R15 bike we have assumed the hypothesis that The cost of the bike is higher when compared with other bike in its segment. a.
The mileage of the bike is below the expectation i.e. 45 km/hr.
b.
It is one of the best bikes in sportive look in India.
b) Customer Satisfaction Survey FZ-S/Fz-16 In this objective the main focus was on understanding the type of customer who had purchased the FZ bikes, to understand the consumer behavior .Also to look after what is their exact requirement from the bike. The survey is conducted on the existing customers to know the feedback about the bikes. The questionnaire is developed to get the responses about the bike. The questionnaire is developed for if there is any problem in the bike,
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how can bike be more improved so that it can become more competitive among its segment 150 cc.
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Profile of the Organization
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BUSINESS TO BUSINESS (B2B) MARKETING STRATEGIES
BUSINESS TO BUSINESS (B2B) Branding: BUSINESS TO BUSINESS (B2B) Branding is different from B2C in some crucial ways, including the need to closely align corporate brands, divisional brands and product/service brands and to apply your brand standards to material often considered “informal” such as email and other electronic correspondence.
Product (or Service): Because business customers are focused on creating shareholder value for themselves, the cost-saving or revenue-producing benefits of products and services are important to factor in throughout the product development and marketing cycles.
People (Target Market): Quite often (www.almnahij.com), the target market for a business product or service is smaller and has more specialized needs reflective of a specific industry or niche. Regardless of the size of the target market, the business customer is making an organizational purchase decision and the dynamics of this, both procedurally and in terms of how they value what they are buying from you; differ dramatically from the consumer market. There may be multiple influencers on the purchase decision, which may also have to be marketed to, though they may not be members of the decision making unit.
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Pricing: The business market can be convinced to pay premium prices more often than the consumer market if you know how to structure your pricing and payment terms well. This price premium is particularly achievable if you support it with a strong brand. Promotion: Promotion planning is relatively easy when you know the media, information seeking and decision making habits of your customer base, not to mention the vocabulary unique to their segment. Specific trade shows, analysts, publications, blogs and retail/wholesale outlets tend to be fairly common to each industry/product area. What this means is that once you figure it out for your industry/product, the promotion plan almost writes itself (depending on your budget) but figuring it out can be a special skill and it takes time to build up experience in your specific field. Promotion techniques are really heavy on marketing communications strategies. Place (Sales and Distribution): The importance of a knowledgeable, experienced and effective direct (inside or outside) sales force is often critical in the business market. If you sell through distribution channels also, the number and type of sales forces can vary tremendously and your success as a marketer is highly dependent on their success.
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BUSINESS TO BUSINESS (B2B) MARKETING COMMUNICATIONS The purpose of BUSINESS TO BUSINESS (B2B) marketing communications is to support the organizations' sales effort and improve company profitability. BUSINESS TO BUSINESS (B2B) marketing communications tactics generally include advertising, public relations, direct mail, trade show support, sales collateral, branding, and interactive services such as website design and search engine optimization. The Business Marketing Association is the trade organization that serves BUSINESS TO BUSINESS (B2B) marketing professionals. It was founded in 1922 and offers certification programs, research services, conferences, industry awards and training programs. Positioning Statement: An important first step in business to business marketing is the development of your positioning statement. This is a statement of what you do and how you do it differently and better and more efficiently than your competitors. Developing your messages: The next step is to develop your messages. There is usually a primary message that conveys more strongly to your customers what you do and the benefit it offers to them, supported by a number of secondary messages, each of which may have a number of supporting arguments, facts and figures. Building a campaign plan:
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Whatever form your BUSINESS TO BUSINESS (B2B) marketing campaign will take, build a comprehensive plan up front to target resources where you believe they will deliver the best return on investment, and make sure you have all the infrastructure in place to support each stage of the marketing process - and that doesn't just include developing the lead - make sure the entire organization is geared up to handle the inquiries appropriately.
YAMAHA -SWOT ANALYSIS Strengths: 1. Yamaha motor are known for it specific design and models all around the world. 2. Yamaha believes in power and styling bike. 3. Continuous product improvement in accordance with demanding customers, standard through a good R&D unit. 4. Customer satisfaction and high quality product with advance and latest technologies (Technical Expertise). 5. Yamaha is considered as a symbol of status in the world. 6. Yamaha believes in “Kando”, providing extreme satisfaction to their customers. Weaknesses: 1. Not fully adopted in Indian environment. 2. Mileage is not up to the standard mark as Indian market put more focus on this. 3. Lack in advertisement and promotion activities. Opportunities: 32
1. Launching of new products and variants of existing models backed up by appropriate marketing efforts. 2. Fuel efficiency which is much higher than the competitors. 3. Focus more on capturing the rural market. 4. Can offer/plan CNG or electric models. 5. Zero maintenance products. 6. Can reduce the price of their models. Threats: 1. Competition from other two wheelers company. 2. Government regulation. 3. Dealers are not adjusted with change in time. 4. Secondary or resale market of two-wheeler. Ansoff Matrix: Market Penetration:It means to launch a new product or service in new market. For e.g. YAMAHA introduced GLADIATOR in the rural areas. Market Extension:It means to launch a new product and services in existing market. For e.g. YAMAHA launched R15, FZ 16 & FZ-S in the market. 33
Product Development:It means to launch an existing product or services in new market for e.g. YAMAHA reaching rural areas also through their bike like ALBA & CRUX. Diversification: It means to introduce new schemes to increase sales of existing product or services in the existing market for e.g. Institutional Sales.
RESEARCH METHODOLOGY
Research in common parlance refers to search for knowledge. Research is an academic activity & as such it is used in a technical sense. According to Clifford Woody, research comprises defining & redefining problems, formulating hypothesis or suggested solutions, collecting, organizing & evaluating data, making deductions & reaching conclusions, & at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. PRIMARY OBJECTIVE The objectives in which I have worked during summer internship program 1- Automobile Industry Analysis (secondary data) 34
(Automobile Industry Overview,Size,Segment wise contribution with reason ,scope ,consumer buying behavior , positive trends, negative trends, and future. 2- Competition survey (Focus on customer profile, Pricing of products, display, salesman skills, about new launches and number of dealers) 3- FZ & R15 Bikes customer survey (Buying Motives analysis and satisfaction survey) 4- Implementation of Promotion activities (Ensuring proper field activities like Sales camps test rides/tagging. Participation in Super Service Camp at palwal, Canopy, Yes Yamaha Caravan Activity, Road shows, customer meets event, Scholarship program, and promotion through FM Radio)
SECONARY OBJECTIVE 1. To improve over all functioning of the assigned dealer. PROBLEM DEFINATION There are three major problems which were investigated during the course of this research. To study the customer perception about of brand value of the Yamaha Company in the allocated region. To do a comparative analysis of the major brands including Yamaha based on various sales and service parameters. To identify the areas of improvement based on primary data collected and to give recommendations to Yamaha to help it to become the of No.1 customer oriented company. Major Player of Two Wheeler segments35
Hero Honda Motors Honda Motors Services India Yamaha Motors TVS Motors Suzuki Bajaj Motors HERO HONDA MOTORS LTD. The Indian two-wheeler contributes the largest volumes amongst all the segments in automobile industry. Though the segment can be broadly categorized into 3 sub-segments via; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments. There are a lot of companies in this Industry. The major players are: Hero Honda Motors Ltd is one of the leading companies in the twowheeler industry. At present, it is the market leader in the motorcycle segment with around 50% of the market share during FY 2003-04. The company has emerged as one of the most successful players, much ahead of its competitors an account of its superior and reliable product quality complemented with excellent marketing techniques. The company has been consistently addressing the growing demand for motorcycles and has a cumulative customer base of over 5 million customers, which is expected to reach 6mn mark with the rural and semi-urban segment being the new class of consumers.
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Hero Honda continues to hold the coveted position of being the largest individual two wheeler companies in the world as also being the No.1 two wheeler joint venture.. New model 'Dawn' recorded monthly sales of 10,000 units within three months of launch. The total sales turnover of the company was Rs.1, 745.21 crores in quarter ended June 30, 2004 from Rs.1, 359.82 crores in the corresponding period last year. Profit before tax was Rs.885 crores and Profit after tax was 581 crores in the FY 2002-03.
The company's sales volume during the first quarter of the year 2004 also recorded a splendid increase, with sales of 6, 09,123 units of motorcycles as compared to 4, 58,779 motorcycles sold during the first quarter of the last FY. The Company Offers The Following Products As On 01/06/2009: CD 100 CD 100 SS Splendor Passion CBZ Xtreme CD Dawn Karizma Splendor + Passion Plus 37
Passion Pro CBZ Star
BAJAJ AUTO
Established in 1945, it was incorporated as a trading company. From 1948 till 1959, it imported scooters and three wheelers from Italy and sold them in India. It then obtained a production license in 1959 and struck a technical collaboration with Piaggio of Italy in 1960 and continued with the same for the next two decades. The production Scooter commenced in 1961. Three wheeler productions followed in 1962. Its collaboration with Piaggio expired in 1971 and since then the Company's scooters and three wheelers are sold under the "Bajaj" brand name. It is one of India's top ten companies in terms of market capitalization and among the top five in terms of annual turnover. Under the "Horizontal transfer of technology" policy, Maharashtra Scooters Ltd., a Company with 24% equity participation by the Company and 27% participation from Maharashtra State Government's Western Maharashtra Development Corp. was formed in 1975. Production facilities are located at Satara, in Maharashtra State. This helped augment production capacities. These scooters are marketed through the Company's distribution network and under the Company's brand name. The Company's second plant was set up in 1984 at Aurangabad, in Maharashtra State. In this plant, scooter production commenced in 1986, three wheeler production commenced in 1987 and motorcycle facilities were commissioned in 1990 & 38
1991 respectively. From 1961 when the annual production was about 4000 units, today the Company has become a market leader with annual production in excess of 1.35 million units and with product offerings in all segments (mopeds, scooters, motorcycles, and three wheelers).
The Company Offers Following Product As On 01/06/2009: PlatinaPulsar150KS Pulsar150SS Pulsar180SS Pulsar220 Discover DTSi TVS MOTORS CO. TVS Motor Company Limited, part of the TVS Group, is one of India's leading twowheeler manufacturers. With a turnover of over Rs.1800 crores, the Company manufactures a wide range of motorcycles, scooters, mopeds. Little wonder, it boasts of more than 5 million happy customers. It has a strong sales and service network of 430 Authorized Dealerships, 1018 Authorized Service Centers and over 864 Certified Service Points, TVS is growing from strength to strength. TVS’s heavy reliance on few models like ‘Victor’, ‘Fiero’ and ‘Scooty’ for growth and absence of models in the entry level segment would mean a slower growth in its market share in the medium-term.
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The Fiero F2 and Scooty Pep both had been designed to set new standards in style and performance as also convenience. The Company Offers Following Products as 01/06/2009: Scooty streak Scooty pep+ Star city Flame Apache RTR150 Apache RTR180 SUZUKI Suzuki motor company a subsidiary of Suzuki motor company of Japan is the latest entrant in the already crowded two wheeler market in India that is dominated by players like hero Honda, Bajaj Auto, TVS motors and Royal Enfield motors. However the name Suzuki is not new to Indian market, the company was in a tie up with TVS motors for nearly two decades before it decided to go alone. Suzuki Motorcycle India private limited is a subsidiary of Suzuki Motor Corporation of Japan and has the manufacturing philosophy of providing value packed product right from inception. The company has started its India operation with three mass market motorcycles and is also expected to come up with a 150 cc high performance set of two wheelers soon. The company has a manufacturing capacity in Gurgaon to churn out over one lakh 40
motorcycles annually. The company employs around two hundred people and will step up its production capabilities as and when required. Some higher end models are also expected to be rolled out of the Suzuki factory soon. The Company Offers Following Products As On 01/06/2009: Zeus Zeus125 SS125 Heat Zeus150R Intruder-M1800 Hayabusa-1300
YAMAHA MOTORS a) CRUX: CRUX delivers exceptional durability that a frequent user like you would appreciate. It moves smoothly even when carrying heavy loads or passengers. The CRUX will meet all your requirements. Crux, the complete economy 4-stroke bike gives unlimited mileage and pleasure. Its 106 cc, 4-stroke engine, multi-reflector lights and long seat. It’s the most comfortable 4-stroke commuter bike on the Indian roads.
b) ALBA: The Yamaha Alba is one of a kind: Alba’s electric start engine youthful style and modernism with thoughtful decency! Get a feel of Yamaha Alba’s robust and
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solid design.Its 106 cc, 4-stroke engine. One is drawn to the bike’s stylist front cowl, the trendy speedometer and the chic alloy wheels. b) GLADIATOR:
The Gladiator is 4-stroke, 125cc styling, refinement and a
free-revving 11 bhp engine with Yamaha Throttle Position Sensor (YTPS) that delivers stupendous standing acceleration. 5 speed gearbox allows the rider to make the most of a wide power band to experience excellent performance in both around-town and high-speed riding. FZ-16: The FZ16 takes attention away from others on the road as it makes its personality felt. Due to minute calculations and overcoming major challenges, an ultimate body balance has been produced. The agile running performance is extremely exciting. The superior performance brings riding feel, which when you ride provides you an emotional high. It is 4-stoke, Air cooled engine and 153 cc bike. It’s generating 14 bhp powers. Both the tyres are tubeless radial tyre. FZ-S: The new FZ-S is for stylish and attention seeking Macho man. It is designed to satiate the need for style and fashion by riders. With the Triple Macho concept projecting the Muscular silhouette, muscular body parts and muscular chassis, FZ -S is an object on the street and reflects visual expression of performance. It is 4-stoke, Air cooled engine, self start and 153 cc bike. It’s generating 14 bhp powers and it has tubeless tyre. Yamaha introduce the tubeless tyre first in India. R15:
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“Harmony between rider and machine.” YAMAHA's Human Technology involves studying the form of the motorcycle actually in motion with the rider on it. The R series is the embodiment of: 1) A wide frontal space that protects the rider. 2) An easy to ride seating area that gives riders the freedom of movement and allows them to steer effectively 3) The glamorous tail treatment that takes into account the management of airflow behind the rider. 4) A sensual racing form that brings all 3 of these elements together in a harmonious package. These characteristics have been splendidly reproduced in the YZF-R15. It is 4stoke, Liquid cooled engine, self start and 149.8 cc bike. It’s generating 17 bhp powers and both tyres are tubeless radial tyre. DiASil cylinder is used in construction. MT-01: There is nothing like the MT-01: a massive engine that produces huge torque for hammer-blow acceleration, a sports chassis that knifes through the turns, a pulsating exhaust note that's total aural ecstasy and monumental styling that'll stop the traffic. It’s in 1670 cc segment and 4-stroke engine with maximum power of 66.3 bhp. As an Environmentally sensitive organization, YMI goes with
the concept of
"Environment-friendly technology" philosophy. In order to keep our workplace clean, many dustbins have been placed all over the plant.” Cleanliness is next to godliness”. COMPETITION SURVEY
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The main focus which comes under this objective is to analyze the sales man skills at showroom of other companies. Also to gather information about their new launches and critically analyzes the product specification and comparison with Yamaha products. RESEARCH METHODOLOGY The method we adopted is that we visited different showroom located in our allocated region. We compare the salesmen skills in following parametersb) Salesmen Knowledge – Sales of company depend on the knowledge and skill of salesmen. Sales also depend on the convincing power of salesmen and their speaking skill. In Hero Honda showroom salesmen are knowledgeable; they have good knowledge of products good convincing power. In Bajaj showroom salesmen are good but their speaking skill is not up to standard. In Yamaha showroom salesmen are good, but they fail to convince the customers as they don’t have deep knowledge of products. c) Salesmen Behavior – Salesmen behavior is very important to increase the sale of the company. The role of the Salesmen is very important then any company employee as he is a person who deals directly with the customers.
In Hero Honda salesmen behavior is not good; there is some time of overconfidence in the salesmen.
In TVS salesmen behavior is good but not up to standard. 44
In Yamaha salesmen behavior is good. d) Salesmen Enquiry Management – Enquiry Management is very essential for any company to manage the customer’s details who visited the showroom for purchasing bike or for a bike enquiry. This enquiry can help to find out the loyal customers, and those customers who have visited the showroom. In Hero Honda salesmen enquiry is good but there is less follow up of customers. In TVS customers follows up is good, they follow up the customers until it is closed. In Yamaha, customers database is maintain but their follow up is not good. e) Salesmen Dress code – Salesmen dress code is very important as its create a sense of feeling in the salesmen mind that they are part of a company and they are responsible for any good and bad thinks that happened. In Hero Honda there is dress code for the salesmen. In TVS there is no dress code for the salesmen. In Yamaha there is no dress code for the salesmen. We compare the New Products in the following parametersI.
Segment – All the automobile companies are launching its new product in all segments. Especially in the 150 cc segment. 45
Yamaha which is known for power and stylist bike has launched a new variant of FZ (Fazer) in the month of June. Bajaj has also launched the new variant of Pulsar (Pulsar 220), a powerful and stylist bike. Suzuki has launched GS 150R a very powerful bike in 150 cc which has all the attributes such as power, style and good mileage which is most important to Indian market. II.
Technology – In this competitive era all companies are developing new technology to defeat their competitor. Each company is coming with new technology which enhances the bike attributes and make place in customers mind. Yamaha has come with TPS system which uses a microprocessor chip. Bajaj came with DTSi technology.
III.
Mileage – In Indian market most of the people give priority to mileage; their first choice is mileage when they go for purchase any bike. Hero Honda is market leader in India automobile industry, as it target the common people. Hero Honda gives good average in all segments. Yamaha gives good average in 100 cc and 125 cc but in other segments average is not good. Mileage of TVS bikes is good.
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IV.
Price – Indian People are very price sensitive. Most of people give priority to the price, others parameter such as power, style and look has no importance.
R15 & FZ-S/FZ-16 CUSTOMER SURVEY a) Customer Satisfaction Survey R15
In
this objective the main focus was on understanding the type of customer who had purchased the bikes, to understand the consumer behavior .Also to look after what is their exact requirement from the bike. The survey is conducted on the existing customers to know the feedback about the bikes. The questionnaire is developed to get the responses about the bike. The questionnaire is developed for if there is any problem in the bike, how can bike be more improved so that it can become more competitive among its segment 150 cc. a) It is one of the best bikes in sportive look in India. b) Customer Satisfaction Survey FZ-S/Fz-16 In this objective the main focus was on understanding the type of customer who had purchased the FZ bikes, to understand the consumer behavior .Also to look after what is their exact requirement from the bike. The survey is conducted on the existing customers to know the feedback about the bikes. The questionnaire is developed to get the responses about the bike. The questionnaire is developed for if there is any problem in the bike, how can bike be more improved so that it can become more competitive among its segment 150 cc. IMPLEMENTATION OF PROMOTION ACTIVITIES 47
Promotion is very important for success of any brand. It’s the part of marketing. Promotion is concerned with marketing communications to the consumers. The more important promotion methods are advertising, personal selling, sales promotion, publicity and direct marketing. The marketer has to decide which method would be most suitable to effectively reach the consumers. Should it be advertising alone or should it be combined with sales promotion? The company has to know the target consumers, their location, what media do they access to and what are their media preferences, etc. METHODOLOGY – There are various method of promotion, we opt some of the methods which can be easily applied and not costly. We took part in various activities to promote Brand Yamaha. Some of the activities are as follows1. Tagging – This one of cheap way of promoting the brand, we used to do tagging at various places where there is crowd of two-wheelers. This is very cheap way to promote and spread information about the new products. 2. Road Show – We have conducted a road show in palwal before the “Super Service Camp”. This super camp was conducted for 4 days. Four bikes were used to go around the city along with a demo van. 3. Canopy – Canopy is also one of the easy and simple ways of promoting a brand. It is one of the best way to promote a brand at a place where other modes of promotion and advertisement can’t be used, due to there location or interior places. We arrange canopy at various places with two bikes for demo and test drive.
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4. Caravan Activity – This activity was conducted by the higher authority at the head quarter. I was lucky that I got chance to be a part of this activity. I took part in this activity at two places, first at Faridabad and second at Gurgaon. There was a caravan in which there was a Flat T.V. with surrounding sound. Ads of Yamaha were displayed on the T.V. at various places in the city where there was crowd. This caravan activity covered the whole H.R. region
RESEARCH DESIGN The questionnaire was administered to a sample of 100 respondents of existing customers of Yamaha. All the data regarding the questionnaire was collected during the course of the research from various locations of, Ballabgarh, Palwal, a Gurgaon, Faridabad. Structure of Questionnaire: Interval scale structure was incorporated for Questionnaire designing. Ordinal parameters like degree of Yes/No, Agree/ Disagree & very bad/very good were scaled in absolute cardinal values. The questionnaire was a well formulated combination of both open and close ended questions. Various parameters on which the respondents perceptions where interpreted included. SAMPLE SIZE
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We chose the method of “Simple Random Sampling” for finding our target sample. The sample size is 100. We collected the samples from various parts of Ballabgarh, Palwal, Gurgaon; Faridabad including company operated service stations. Sample size was kept small mainly due to following reasons. I. Paucity of time. II. Specified target sample preference (we only included those respondents who have specified bikes). Sample size is small due to reason that every respondent is not ready to fill the questionnaire.
DATA COLLECTION Data forms the most important part of the research process as the entire process in dependent on the availability of quality data for analysis. Data are of two types Primary Data Secondary Data
In this research process data was collected in the primary form through first hand customer interaction through the medium of questionnaires and through the use of secondary data which is collected from the following sources-TV, Internet
Magazines, Newspapers
Reviews
Research articles 50
There's a lot more secondary data than primary data, and secondary data is a whole lot cheaper and easier to acquire. The problem is that often the reliability, accuracy and integrity of the data is uncertain. Who collected it? Can they be trusted? Did they do any preprocessing of the data? Is it biased?
DATA COLLECTION (PRIMARY) Table 5: DETAILS OF DATA COLLECTION
Sample size(total)
100
Ballabgarh
Sample area
Palwal Gurgaon Faridabad Sampling
Simple random sampling
Type on questionnaire
Structured
No. of questionnaires
1
No of questions involved
14
Type of questions
Combination of open and close ended questions
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Figure 1: DATA STRUCTURE
Final data for analysis (The Objectives Was To Know)
(
Consumer Behavior
Feedback of R15 & FZS/16
The questionnaire was prepared to know the consumer behavior of the Yamaha Customer and to know the number of R15 & FZ-16/S existing customers. The questionnaire consisted of 14 questions which were made for getting information about buying motives of the bikes and for getting the knowledge about the feedback of R15 & FZ-S/16.
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LIMITATIONS The sample size for the primary data collection was small, just 100. A larger sample might have increased the precision and accuracy of the readings, findings and analysis. Research was restricted to only existing customers of Yamaha. Since it is limited only to two wheeler Customers so the entire consumer behavior during sales and service of any type of product can not be projected on this research. Being a Management Trainee it was sometimes very difficult to get information from different sources in the industry due to limited access.
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Graph: Sales in different cities
Graph : Price Comparision Of Different Bikes in 100 cc Segment
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This graph describes about the price comparison of different bikes of companies in 100 cc segment. Price Comparision Of Different Bikes in 125 cc Segment This graph describes about the price comparison of different bikes of companies in 125 cc segement. Graph 7: Price Comparision Of Different Bikes in 150 cc Segment
This graph describes about the price comparison of different bikes of companies in 150 cc segment. Graph : Sales of Bike of Different Companies during January to May 2009.
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This graph presents the sales of different companies in January to May 2009. Graph: Sales of Yamaha Bikes in Palwal Region from January to June 2009.
This graph shows the sales of Yamaha Bikes in Palwal region from January to June 2009.
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FINDINGS AND ANALYSIS 1. Customers in small cities are in habit of getting any type of discount or gift. 2. Sales in small cities is not constant its fluctuating. 3. Sales of Crux and Alba-106 are very good in these regions. 4. Black and Red color is mostly liked by the customers while purchasing bike. 5. Very few people opted finance as a mode of payments. 6. People came to know about Brand Yamaha mostly by their colleagues or friends. 7. Its nearly one year new product(FZ-16,FZ-S AND R15) have been launched but maximum people in small city region have no knowledge/information about these bikes. 8. Mostly people think that price of Yamaha bike is high and mileage is not good. 9. After sale service of dealer is good but not cent percent. 10. Promotion and advertisement activities are not good. 11. The service centers are very less in number, which make it far from the customer’s place. 12. The major age groups who ride on bike are 15-25. 13. The customer basically want that R15 should be less costly and the tyre should be broader. 14. The best feature in FZ-16 & FZ-S is its stylish new look and its stylish tyres. 59
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RECOMMENDATIONS The recommendations from the thorough analysis of this research are as followsPRODUCT: A competent product for the 100cc segment should be developed. Strengthen the product range with focus on introducing more variants. Design of FZ-S and FZ-16 must be modified especially the tank. PRICE: Yamaha must reduce the prices of their bikes Specially 100 cc segment to give competition to its competitors. More care should be given regarding the price and availability of spares. New products should not be priced too high. PLACE: Yamaha dealerships should be located in prime locations. New dealerships should be opened in the rural and semi urban markets of Gurgaon, A new product in the 150cc and higher category should be launched with competitive pricing. PROMOTION: 61
The advertisement and promotion strategy needs to be more aggressive. Exchange offers should be introduced to promote sales. Sign youth icon or celebrity as brand ambassador of Yamaha. Provide sponsor to events and shows. Give more ads on TV and newspaper to promote and advertisement
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BIBLIOGRAPY www.siamindia.com www.tutor2u.com cfltaskforce.treasury.gov.au www.indiainfoline.com www.Yamahaindia.com www.researchandmarkets.com www.automobileindia.com www.ymsl.in www.financialexpress.com www.indianexpress.com www.autoindia.com www.automobileindia.com www.icmrindia.org auto.indiamart.com www.yamaha-motor-india.com www.honda.com www.tvs.in www.herohonda.com
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QUESTIONNAIRE Customer Name: Contact No:
1. Age Group: (a) 15-20 (b) 20-25 (c) 25-30 (d) 30+ 2. Education : (a) High School (b) Intermediate (c) Graduation (d) P. Graduation 3. Annual Income Group: (a) Rs.2, 00,000 4. Bike which you already have: (a) Hero Honda (b) Yamaha (c) Bajaj (d) Honda (e) TVS (f) Suzuki 5. How much amount you want to invest in bike : (a)80,000 6. What is your source of information: (a) T.V. b) Internet (c) Print (d) Friends (e) Other 8. Which Colour you like most: (a) Red (b) Black (c) Green (d) Other 9. Which Factor influence you to buy the bike: (a) Style (b) Power (c) Handling (d) comfort 10. Mode Of Purchase you prefer: (a) Cash (b) Finance 11. Are you satisfied with the services provided to you: (a) Yes
(b) No
(a) Customer Handling (b) Spare parts (c) Bad Service (d) The service centres are less in number. 12. One thing you would like to add in R15: (a) Power (b) More Colours (c) Economic Price (d) Broad Tyres 13. What is the best feature you liked in FZ-16 & FZ-S: (a) Looks (b) Stylish Tyres (c) Pick-up (d) Other 14. Areas of improvement: ……………………………………………………………………………………………… ……………………………………………………………………………………………… ………………………………………………………………………
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