Research on 150cc bike segment in India, YAMAHA FZ

Joseph KJ, Nikhil Philip

IIM,Kozhikode.

Indian Two-Wheeler Industry: A PerspectiveAutomobile is one of the largest industries in global market.

Being the leader in product and process technologies in the manufacturing sector, it has been recognised 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 realising 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.

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.

OBJECTIVE

To know the customer’s perception regarding new bikes FZ by

Yamaha.· To determine the customer’s satisfaction

regarding bikes and after sales service.· To determine the factors influencing the

choice of customers regarding bikes· To know about the competitors of FZ

Conducted by students of IIM

METHODOLOGYThe 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.. Aftergiving through brain storming session, objectives were selected and the set on the base ofthese objectives, A questionnaire was designed major emphasis of which was gatheringnew 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.

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 andtelephone interviews are employed.

RESEARCH DESIGN This study is a mix of explorative and formal methodologies adopting

monitoring and observing to study the fz customers and its competitors and communication to elicit responses from customers. This is a cross sectional study done during the month April 2011.

 For the customer satisfaction study a questionnaire was formulated

containing 22 questions which were sent out for response mainly through personal interviews of customers at Yamaha dealerships. This data was later analyzed .

 To know the Yamaha reputation and sales promotion in motorcycle

market, census method was chosen dealership were individually visited in the area of Kochi.

SCOPE OF THE STUDY

This study is aimed at providing India Yamaha Motors with an insight into the success of FZ as well as the customer’s response and awareness towards the brand,products and services of Yamaha.

The data has been analyzed and presented in a simple and precise way on the basis of which pertinent recommendations have been made to the company to better the services, policies and strategies of the company in India.

LIMITATIONS OF THE STUDY

· This research is geographically restricted to Kochi and Trivandrum 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.

RESULTS OF THE CUSTOMER SURVEY· The above pie chart is showing that the customers of FZ are mainly comingfrom the age group of 16-25 that is around 69%, as Yamaha claims that theygenerally 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 (around20%) also because of its reputation in the world market.

In this pie chart it is very much clear that 76% of the Yamaha’scustomer is mainly the youth who are single, so Yamaha’s new launch FZS is mostlybeing accepted by the singles instead of family oriented people.

Once again we found that Yamaha’s major customers are the students ofcolleges and schools which consists 43%, as they want something special, new, stylish,masculine and attractive and Yamaha is providing that in the form of FZ.

In the income group distribution we can analyze that customers of FZS are coming from the Middle income group people which is around 73% 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.

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.Today’s customers are ready to pay for better facilities and technology and they feel that FZS deserves that price which YAMAHA is offering.

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 shouldn’t clash.

Majority of people is not comparing Yamaha FZS to any other product and the number of such people is around 39%, 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.

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 customer’s perception has changed and they are shifting towards the style, design & riding comfort of the vehicle, 54% customers have purchased FZS because of its Style & Design and only 2% people are looking for the mileage. 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. So through this we have proved our First hypothesis which was regarding the Yamaha’s new launch of FZ & FZS that has changed the customer’s perception regarding choice of bikes.

As we can see here the major promotional tool which is influencing the customers is TVCF which stands for Television Commercial, which is around 45%, after that the major source of awareness among customers, is Family/Friends. Magazine and newspaper consists only 9% in our research, but if we look them at a very good sample size then it is around 2% only.  So here we can say that Yamaha should produce better advertisements like FZ 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.

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 98% 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..

PURCHASING REASONS

 OBSERVATION  When we analyze the above Bar Diagram we can

clearly find out that now a days customer are not looking for mileage at all, they are going for style and design, so by conducting this survey we have found that after the launch of Yamaha FZS people are giving second thought to mileage which was first in the previous days.

OBSERVATION: 1: 60% of the people in the 20001-40000 income group opt for styleand 54.5% in 10000-20000.OBSERVATION: 2: Style/Design & riding comfort are the two most significant factors forpeople.

RECOMMENDATIONS

· SHOULD IMPROVE THE AFTER SALE SERVICES:

· WEAK FOLLOW UP FROM DEALERSHIPS

· POOR PROMOTIONAL CAMPAGIN · FOCUSSED ADVERTISEMENT ON

PRODUCT USP: