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International Journal of Business Management & Research (IJBMR) ISSN 2249-6920 Vol. 3, Issue 2, Jun 2013, 1-18 © TJPRC Pvt. Ltd.

PROSPECTIVE APPROACH OF YAMAHA’S SUPERBIKES IN INDIAN MARKET ABHIJAT KUMAR SHUKLA International Management Programme Nyenrode Business Universiteit, the Netherlands Ph.D. (Management) Research Scholar, CMJ University, Shillong Meghalaya, India

ABSTRACT The research paper “Prospective approach of Yamaha’s superbikes in Indian market” researches and studies the various aspects of automobile industries, market share of different companies, and scope of superbikes in India. The study has been conducted to explore the expertise and weakness of Yamaha motors and its future plan related to corporate and business level strategies. Though Yamaha had sold only 350 superbikes in India through its four superbikes dealers within two years of launching its superbikes but its presence in 125-150 cc segments has increased it had succeeded to capture 10% market share in financial year2010 which is 3 times of the market share of FY2007. This research paper helps to acknowledge customer satisfaction level with different features provided by the company and helps to understand their preference over Yamaha. This paper also acknowledges prospective customers and their expectations from the company. The paper is Endeavour to help people select the best product from available products in the market. The main purpose of this research paper is to study the psyche of Indian youth regarding their acceptance cum choice for superbikes.

KEYWORDS: Yamaha’s Superbikes, FY2007, RX and RD series bikes INTRODUCTION Around fifteen years after attaining Independence the Indian Automobile Industries tried to lay their hands in manufacturing motorbikes. However at this time they did not look towards the West for any collaboration, but towards the Far East. In 1960s Ludhiana based Pearl Industries, started manufacturing motorcycles with the collaboration of Japanese giant Yamaha and launched its 50cc and 75 cc motorcycles equipped with 2 stroke engines. Pearl Yamaha was a first overseas venture. The main competitors of Pearl Yamaha were Baby Jawa, Vicky Moped and Velosolex. Due to Yamaha’s advanced mechanization and technical aspects, Pearl Yamaha got huge fan following despite its princely price of Rs.3300 for 75cc model, whereas Vicky Moped priced Rs 2450 and Baby Jawa Rs. 2700 at that time. Bajaj Auto got inspired with Pearl Yamaha when it decided to launch its pure indigenous product M80 7& M50.Throughout the 1960s, Pearl Yamaha dominated these segments in the country like no other two wheeler ever. Unfortunately in 1970s Pearl industries folded up. 1980s was a tough job and milestone for motorcycles manufacturers in India. A wave of Japanese bike manufacturers were coming to tie its knot with Indian bike manufacturers. Ind-Suzuki collaborated with TVS and launched AX100, whereas Honda tied up with Hero Motors and came up with CD100.


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In 1985 Yamaha in collaboration with Escorts and launched its fantastic product Yamaha RX 100 having brilliant engine thus slaying the 250ccYazdis and 350cc Bullet. In the same year Yamaha launched its premium segment bike RD350 which was a great success. In the cutting edge of mid-size motorcycle technology being a 350 seemed to endow it with punch and panache. After 10 years of collaboration with Escorts, Yamaha signed another agreement with Escorts in 1995 and established EYML to manufacture and market motorcycles in India with each company investing 50% of the capital for the original venture. EYML produced a wide range of motorcycles for the urban and rural markets at its Faridabad (Haryana) and Surajpur (Uttarpradesh) plants. EYML manufactured Rajdoot motorcycles at Faridabad and the RX, and the four stroke YBX series at Surajpur plants. Further in 1996 Surajpur and Faridabad plants’ facilities were modernized and upgraded with an investment of Rs. 3.75 billion. EYML would turn out upgraded versions of current high performance bikes RX100 and RXG135 to meet stringent high emission norms. In 1997, a further upgraded RXZ 135, a sleeker version would be launched and the 4 stroke YBX125 would be launched in February 1998 to meet the growing demand for fuel-efficient bikes. YBX 125 delivered the best of both worlds with an excellent performance along with fuel efficiency. EYML also planned to launch 2-3 product variants every year. In April 2000 Escorts announced that it was likely to sell around 20% stake in EYML to Yamaha motors. Escorts would thus become minority shareholders in EYML. In late April 2000, the board of Escorts approved the proposal to divest 24% equity with the change in the equity pattern. Yamaha in 21st Century in India (Yamaha Motor India) 2001-2005 As the era of 20th century came, Yamaha launched its two new products. In the middle of 2001 brand new 'Libero 'came into the market. Next came the 125cc pseudo cruiser, the 'Enticer.' With its full-of -chrome look and stance Enticer did everything just about well, nothing outstandingly brilliant. Yamaha drove into the executive commuter segment with its 125cc offering, the Fazer. During this period Yamaha also launches its Libero G5 & Crux series bikes. One of the most significant steps Yamaha had taken during this period in hauling itself back from the abyss was the appointment of John Abraham as its brand ambassador. John's signing on would most definitely go some way in regaining a little bit of the brand value that Yamaha had last over the last few years. But all attempts of Yamaha to regain its name. In 2001, Yamaha Motors acquired Escorts ‘26% shareholding in EYML for Rs. 700 million. The deal marked Escorts exit from the joint venture. Yamaha Motors would now hold 100% stake in the company. Due to strict emission norms for 2 stroke engines Yamaha had to stop production of its RX and RD series bikes including RX series, which was also one of Yamaha’s performance bikes. Current Position 2006 Onwards •

In 2006 Yamaha India began revitalizing its sagging operations.

Then CEO Mr. Tomotaka Ishikawa decided to avoid the herd (100-125cc category that comprised 79 percent of the bike market then and 70% now). In order to revive his company’s spirit.

Company saw the niche in performance bikes in 150-250cc segments which account for 20% of the bike market.


Prospective Approach of Yamaha’s Superbikes in Indian Market

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Yamaha is still struggling in India with a mere 3.83 percent share of the segment (in financial year 2007) despite of its 24 years of existence here.

Yamaha has revitalized its market share in 125cc-150 cc segment after launching of its performance bikes R 15, FZ 16, Fazer and its superbikes YZF R-1, MT 01 and Fazer VMAX. Yamaha. Led by sales of R15, FZ16 bikes Yamaha’s sales have been tripled (from 3.22% to 10% in FY2010.)

Total 350 superbikes (YZF R1, MT 01) have been sold since January 2008 after launching of its first superbikes in India. The year 2011 was a successful one for India Yamaha Motor. The company registered an annual growth rate of 31.6% over last year with total sales of 4, 60,815 bikes in 2011 as against 3,50,274 bikes in 2010. The growth percentage represents a combined percentage of domestic sales and exports. In India, growth was mainly driven by the FZ and SZ series of bikes.

In December 2011 alone, the company sold 44,976 bikes compared to a 34,839 bikes in December 2010. The export numbers stood at 11,686 bikes in December 2011 as opposed to 8,272 bikes in the same month in 2010.

The new CEO & Managing Director, Hiroyuki Suzuki, India Yamaha Motor, commented on the achievement by saying, “The year 2011 has indeed been an exceptional year for us as we were able to maintain consistency in our overall growth and the results speak for themselves. Our efforts towards enhancing our relationship with our customers through various initiatives like the Yamaha Safe Riding Science, the R15 One Make Race Championships and the Sales & Service camps have also been rewarding. We are buoyant about the future and are looking forward to replicate and further improve upon this achievement in 2012 as well.”

India Yamaha Motor is constantly working towards increasing its market share across all motorcycling segments here in India. The company launched the second generation R15 in the premium segment this year to enhance the brand’s appeal further in our market. The company plans to expand its production capacity to 1 million units in 2012. It also plans to invest in research and development and market expansion.

.India Yamaha Motor launches limited editions of its best selling FZ-S and FAZER bikes.

Yamaha posts 5% sales growth in October 2012.

Yamaha posts 33% domestic sales growth in November 2012.

Yamaha associates itself with PFMI 2012 to target young urban women for its newly launched scooter RAY.

Jan 04, 2013-India Yamaha Motor launches the first ever Female riding training program in India; adds a new color to the vibrant range of Ray scooters.

LITERATURE REVIEW The details of the topic “Yamaha Finds Its Niche” is taken by the magazine “Business World (August 2009)”, the article is written by Mr. Vishal Krishna. Yamaha Find Its Niches Inept product strategy and years of failed attempt at breaking into the 100-125cc segment may have made Yamaha India the grave yard for CEOs (the company changed six in eight years), but it has taught the Japanese performance bike maker one important lesson – the need for a niche. Its rival Bajaj and Hero Honda, who together account for more than


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90 percent of sales in the 100-125cc segment, have guarded their territory so zealously hat Yamaha is still struggling i India with a mere1.3 percent share of the segment (in FY 09 and despite its 24years of existence of existence here. Bruised and cornered, when Yamaha India began revitalizing its sagging operations in 2006, then CEO Tomotaka Ishikawa decided to avoid the “ herd”(100-125 cc category that comprised 79 percent of the bike market then and 70 % now) in order to revive his company’s spirit. He saw the niche in performance bikes in the 150-250 cc segments, which accounts for about 20 percent of the bike market. Ishikawa’s strategy has worked in the interim as Yamaha has seen some revival recently. It has sold over 10,000 vehicles a month – mostly its new performance bikes, the fz-16 and r 15- over the past nine months in the 150-250cc segment , taking its share in the segment to more than 7 % in the first quarter of financial year 2010 and 10% up till now. Together with Hero Honda and Honda whose shares have risen from 8 % and 12%, respectively, in FY 07 to 11% and 21.5% in FY 09- Yamaha has eaten into segment leader Bajaj auto’s market share, which shrunk from 60% in FY 07 to 50% in FY 09.now’ Ishikawa’s successor Yukimine Tsuji (appointed CEO in 2008) has the daunting task of making this comeback work for Yamaha. “I met our suppliers and distributors last august and showed them 2 new bikes’” says Tsuji, adding that they initially skeptical, but turned converts after they saw the Fazer and the FZ 16. Sachin Mathur’ head of Crisil Research’ says that the change in salary profile and aspirations in tier-i and tier-ii cities have altered consumer preferences. “There will have to be new strategies for the 150cc segment with changing urban dynamics because it is such a small base” says Mathur. He also says that while people in cities go far fuel efficient cars, they prefer bikes that are sporty and trendy. Review Since the days of RX 100 and rd 350s era Yamahas has been known as performance bikes manufacturers. Due to strict emission norms of Indian government, Yamaha had to discard its performance bikes like RX 100, RXG 135, RD 350 because these were two strokes bikes and did not match the emission norms. Since then Yamaha has been struggling to maintain its market share but it could not succeed. Till 2006 Yamaha’s products like Fazer 125cc, Gladiator, Crux could not help Yamaha to regain its market share. In 2008 Yamaha launched its superbikes YZF R1 (1000cc), MT 01(1670cc), Fazer VMax (1670cc), performance bikes R 15, FZ 16 and the strategy worked and Yamaha succeeded to regain its market share in 150cc segment. Yamaha’s market share of 3.22 % in 125cc-150cc segment in the FY07 has been tripled to 10% in the year 2010. Mr. Vishalkrishna, the writer of this article has given his opinion that only performance and sports bikes can revive Yamaha’s market share and Yamaha has proved it. In my opinion Yamaha should concentrate in performance & sports bikes in 150-1700cc segment. Its superbikes YZF R1 , MT 01, Vmax will not increase its market share much but these bikes gives an impression that Yamaha is adept in

manufacturing of such powerful bikes and urban and rural people will

surely go far its lower version like R15

(150cc), Fazer (150cc), FZ 16 (150cc). While superbikes will be preferred by high income group, metros youth.


Prospective Approach of Yamaha’s Superbikes in Indian Market

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Power Personalities (Bike India Magazine, August2009)

Review The above article published in Bike India magazine in August 2009 issue. Mr. Yukimine Tsuji, MD and CEO of India Yamaha Motor P. Ltd. had been chosen as power personalities for his immense expertise in various fields and the vast experience he has gathered by working in several countries across the world. Mr. Tsuji is with Yamaha since 1975 and has worked in various divisions -sales, production, planning, VP manufacturing and manufacturing & planning division. Tsuji’s strategy to introduce performance & sports bikes helped Yamaha to increase its market share and increase in volume by 84%.. The R15 has gathered racing credentials in a very short period of time and hence it was the most worthy candidate in the Yamaha product line-up for some serious performance boost. The job was handed over to Yamaha racing corporation, Japan who in turn authorized noted tuning firm and after-markets hop up specialist “Daytona” to make specialized go-faster bits for both the R15 and the FZ16. With over three months of development and rigorous testing around Daytona's own test-track, the final products were readied and dispatched to India.


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Research Work Done by Other Researcher So far I have not found any research project done in this topic. I have searched in the internet but never found any research work except history of Yamaha.

OBJECTIVES OF THE STUDY The objectives set for the study are •

To study Superbike prospects in Indian market.

To find out key players and their market share in India.

To study the brand image of Yamaha’s superbike in India.

To suggest market strategy for the future.

RESEARCH METHODOLOGY AND DESIGN Research Design A research design is a master plan or model for the formal investigation. Once the formal investigation is decided, the researcher must formulate the formal plan of investigation. A research design is the specification of methods & procedure, for acquiring the information needed for solving the problem. The formal investigation plan will concentrate on the selection of sources of information and the selection of methods and procedures for gathering the data. Data gathering forms are prepared. Questionnaires are tested, samples for investigations are planned. There are three basic types of research design:

In my research I have used Descriptive Research Design. Descriptive Research Design The descriptive study is typically concerned with determining frequency with which something occurs or variable vary together this study is guided by an initial hypothesis. Descriptive studies are those studies, which are concerned with describing the characteristics of a particular individual, or of a group. Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quit use the term ex post facto research for descriptive research studies1.1.2 Data Source There are two sources of Data Collection: •

Primary Data source

Secondary source


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Prospective Approach of Yamaha’s Superbikes in Indian Market

Source of Data Primary Data Primary data are those data, which are obtained for the first time by the investigator himself. In order words, by primary data we mean those data, which are originally, i.e., those in which little or no grouping has been made, the instance being recorded or itemized encountered. The source of primary data used in my project is the questionnaire. Primary are the raw data like raw material. Primary data are according to object of investigation and used without correction. The collection of primary data requires large sum, energy and time. Precautions are not necessary in the use of the primary data. Secondary Data Secondary data means data that are already available i.e.; they refer to the data, which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look in to various sources from where he can obtain them. In this cause he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Data Collection Method As a data collection method I have used the questionnaire method. Why a questionnaire method has been adopted? Questionnaire have been prepared to get the response of the people, because there are very few people who want & are capable to purchase expensive superbikes. It can provide the best end results without any kind of biasness, and can give a brief idea about sampling and would be beneficial for making inferences for tabulations and calculations with research instruments? I made a survey through questionnaire, prepared by me, in Delhi. I had been to “Delhi scooters” (Authorized dealer of Yamaha for superbikes) Rajouri garden and Yamaha’s own company showroom in Saket Mall. I have also collected some data from “Bangalore wheels “(dealer of Yamaha superbikes) over phone. There are only 4 dealers of Yamaha superbikes in India: Delhi, Banglor, Pune & in Mumbai.

SAMPLING DESIGN Sampling plan consists of sampling unit, sampling size and sampling procedure therefore it is necessary to find out sampling plan if population is 100. Sample design consists of: •

Experimental research design

Research design

Descriptive research design.

Sampling Unit Sampling unit is the total number of samples differed in different exploratory locality. Table 1 S. No. 1. 2. 3.

Classes Service class Business class Employed Total

No. of Classes 12 12 21 45

Location Delhi Delhi Delhi, Bilaspur & Raipur (Chhattisgarh)


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Data have been collected through the survey method while surveys have been conducted in following cities: •

Delhi

Banglore.

Bilaspur & Raipur (Chhattisgarh) All the data are primary in the nature as they have been collected first and personally. I have considered45as

sample size.

RESEARCH PLAN Research Design

:

Descriptive Research

Data Source

:

Primary Data

Research Instrument

:

Questionnaire

Sample Plan Sampling Design

:

Convenient Sampling

Sample Size

:

45

Sample Location

:

Delhi, Bangalore, Bilaspur &Raipur

DATA ANALYSIS & INTERPRETATION Table 2: Sex Sex Male Female

No. of Respondents 45 0

Percentage 100% 0%

Interpretation: The entire respondents are male. It indicates that only male is going to be superbikes customers in India. Table 3: Employment Status Employment Status STUDENT BUSINESS EMPLOYED

No. of Respondents 12 12 21

Percentage 26.67% 26.67% 46.66%


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Prospective Approach of Yamaha’s Superbikes in Indian Market

Interpretation: 46% of the respondents are employed (some of them are in marketing, some are Engineers, and some are CAs) 27% of the respondents are Businessmen and 27% are the student Monthly Income Table 4: (A) 10000-15,000 (B) 15,000-25,000 (C) 25,000-35,000 (D) ABOVE 35,000 Monthly Income 10,000-15000 15000 - 25000 25000 - 35000 ABOVE 35,000

No. of Respondent 09 12 24

Percentage 20% 26.66% 53.34%

Interpretation: Majority of the respondents (53.33%) are earning more than Rs. 35,000/- per month. •

Why do you want to purchase a Superbike instead of Executive or Street Bike (100cc to 250 cc Bikes). Table 5: (A) Passion & Thrill (B) for Status Symbol (C) for More Power (D) Need Reason for Purchasing Superbike Passion & Thrill For Status symbol For more power Need

No. of Respondents

Percentage

27 03

60% 6.67%

12 03

26.66 6.67%


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Abhijat Kumar Shukla

Interpretation: Majority (60%) of the respondents purchased superbikes for passion & thrill. •

Why have you preferred to purchase Yamaha’s Superbike among Honda CBR100, Suzuki Intruder and Harley Davidson? Table 6: (A) Yamaha’s Image (B) Quality (C) Performance (D) Looks Reason For Choosing Yamaha Yamaha’s Image Quality Performance Looks

No. of Respondents 09 09 27

Percentage 20% 20% 60%

Interpretation: Majority of the respondents (60%) chose Yamaha superbikes for its performance. •

Instead of buying a luxurious car why do you prefer to have a Superbike?

Table 7: (A) For style (B) Traffic Condition Doesn’t Permit to Use Luxurious Car (C) Status Symbol (D) Car is Common and Superbike is Uncommon in India Instead of Buying a Luxurious Car Why do You Prefer to Have a Superbike? For style Due to traffic condition Status symbol Car is common and superbike is uncommon in India

No. of Respondents

Percentage

15 03 12

33.34% 6.66% 26.66%

15

33.34%


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Prospective Approach of Yamaha’s Superbikes in Indian Market

Interpretation: 33% of the respondents prefer Yamaha for style & 33% prefer Yamaha superbikes as superbike is uncommon and car is common. Have you ever owned a Superbike earlier? Table 8: (A) Yes (B) No Owning Superbike Earlier YES NO

No. of Respondent 36 09

Percentage 80% 20%

Interpretation: Majority of the respondents (80%) have already owned superbikes before purchasing Yamaha’s superbikes. Quality, which inspired you to choose Yamaha as compared to other brands? Table 9: (A) Its Design (B) Its Performance (C) Its Quality (D) Its Price Quality, Which Inspired You to Choose Yamaha As Compared to Other Brands? Its design Its performance Its quality All above Its price

No. of Respondents

Percentage

12 30

26.67% 66.67%

03

6.66%


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Abhijat Kumar Shukla

Interpretation: Majority of respondents (67%) inspired to choose Yamaha because of bikes’ performance. •

How did you come to know about Yamaha’s Superbikes? Table 10: (A) Advertisement (B) Film (C) from People (D) from Other Source How Come to Know About Yamaha Superbikes Advertisement Film From People From other source

No. of Respondents 27 06 06 06

Percentage 60% 13.34% 13.34% 13.34%

Interpretation: Majority of the respondents (60%) came to know about Yamaha superbikes from advertisement. •

Do you think that Indian roads are good enough for superbikes? Table 11: (A) Yes (B) No (C) Cannot Say Roads Are Good Enough for Superbikes YES NO CAN NOT SAY

No. of Respondents 36 09

Percentage 80% 20%

Interpretation: Majority of the respondents (80%) think that Indian roads (metros) are good enough for superbikes.


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Prospective Approach of Yamaha’s Superbikes in Indian Market

Do you think it was a favorable time for Yamaha to launch its superbikes in India in 2008? Table 12: (A) Yes (B) No (C) Cannot Say Did Yamaha Launch its Superbikes n Favorable Time? YES NO CAN NOT SAY

No. of Respondents 33 09 03

Percentage 73.34% 20% 6.66%

Interpretation: Majority of the respondents (73%) think that Yamaha had launched its superbikes in favorable time. •

Do you think Yamaha would regain its market share in motorbikes market as it had gained in mid 80s during RX100 & RD series era, by launching superbikes & performance bikes in India? Table 13: (A) Yes (B) No (C) A Little Gain in Market Share (D) Cannot Say Will Yamaha Regain its Market Share Because of Superbikes YES NO A LITTLE GAIN CAN NOT SAY

No. of Respondents 27 06 09 03

Percentage 60% 13.34% 20% 6.66%

Interpretation: Majority of the respondents (60%) think that Yamaha will regain its market share because of superbikes. •

Has brand ambassador John Abraham’s image helped Yamaha to attract youngster to go for Superbikes?


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Abhijat Kumar Shukla

Table 14: (A) Yes (B) No (C) Somewhat (D) Cannot Say John Abraham’s Image Helped Yamaha to Attract Youngster to go for Superbikes? Yes No Somewhat CAN NOT SAY

No. of Respondents

Percentage

33 06 03 03

73.34% 13.34% 6.66% 6.66%

Interpretation: Majority of the respondents (73%) said that brand ambassador John Abraham’s image has helped Yamaha to attract young guys to purchase superbikes. •

Which brand is Yamaha’s competitor for superbikes?

Table 15: (A) Honda CBR1000 (B) Suzuki Intruder (C) Harley Davidson (D) No One Can Compete Yamaha Which Brand is Yamaha’s Competitor? HONDA CBR 1000RR Suzuki Intruder Harley Davidson No one can compete Yamaha

No. of Respondents 18 09 12 06

Percentage 40% 20% 26.67% 13.33%

Interpretation: 40% respondents think that Honda CBR 1000rr will be Yamaha’s competitor & 27 % think that Harley Davidson will be Yamaha’s competitor. •

Will Yamaha be benefitted, as it is a pioneer in Indian market?


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Prospective Approach of Yamaha’s Superbikes in Indian Market

Table 16: (A) Yes (B) No (C) Cannot Say Yamaha Will be Benefitted Due to Pioneer Status Yes No Cannot say

No. of Respondents

Percentage

36

80%

09

20%

Interpretation: Majority of the respondents (80%) said that pioneer status has been beneficial for Yamaha. •

Are Indians ready to purchase such expensive bikes? Table 17: Certainly (B) Only a Small Percentage of Metro People (C) No One is Ready Indians are Ready to Purchase Expensive Bikes Certainly Only a small percentage of metro No one is ready

No. of Respondents 12 33

Percentage 26.67% 73.33%

Interpretation: Majority of the respondents (73%) think that Indians are ready for purchasing such expensive bikes. Will Yamaha be successful in providing after sales Service to their superbikes customers? Table 18: Yes (B) No Will Yamaha Be Successful in Providing After Sales Service to Their Superbikes Customers?

No. of Respondents

Percentage

Yes

27

60%

No

18

40%


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Abhijat Kumar Shukla

Interpretation: 60% of the respondents are hopeful that Yamaha would be successful in providing after sales & service to their customers.

HYPOTHESIS TESTING Table 19: Z -Test of Hypothesis for the Mean (Σ Known) Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TOTAL

Xi 27 27 15 36 30 27 36 33 27 33 18 36 33 27

(X I - X¯ ) -1.9 -1.9 -13.9 7.1 1.1 -1.9 7.1 4.1 -1.9 4.1 -10.9 7.1 4.1 -1.9 0.4

(Xi -X¯)2 3.61 3.61 193.21 50.41 1.21 3.61 50.41 16.81 3.61 16.81 118.81 50.41 16.81 3.6 532.93

∑ Xi = 405 ∑ (Xi –X¯) 2 =532.93 X¯ = ∑ Xi/14 X¯= 405/14 = 28.9 STANDARD DEVIATION

σ

= ∑ (Xi – X¯) 2 √ (n-1)

STANDARD DEVIATION

σ = √532.93/13 S = 6.40.

Z Test Z = (X - µo)/σ √N


Prospective Approach of Yamaha’s Superbikes in Indian Market

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Z = 28.9 – 45 6.40/√14 Z=

16.1/ 6.4*3.74

Z = 9.47 Critical Value Approach to Hypothesis Testing With 0.05 level of significance the critical value of Z is

Z = 1.960 (TAKEN FROM Z TABLE) Critical value of Z is below calculated value (9.47) Hence Null Hypothesis is rejected and Alternative Hypothesis is accepted. On the basis of the observations it is evaluated that Indians are ready to purchase expensive Superbikes like Yamaha Superbikes.

FINDINGS, SUGGESTIONS & LIMITATIONS Findings •

Maximum customers of superbikes are from metros.

People want to possess these bikes due to passion & thrill not due to need.

Yamaha’s superbikes are preferred over’s other superbikes because of its performance.

At the price of superbikes one can have a luxurious car but people want to possess it because superbikes are uncommon whereas car is common and superbikes are also stylish.

Maximum customers of Superbikes had other version of superbikes earlier before Yamaha’s presence in superbikes in India.

People prefer Yamaha due to its performance.

People knew about Yamaha’s superbikes through advertisement and film (Dhoom -though in this film Suzuki’s Hayabusha is used).

When Yamaha launched its superbikes in India it was a favorable time for the company as film Dhoom had displayed another superbike “Hayabusha” and Yamaha got the benefit as it is a pioneer in superbikes in India.

Film actor “John Abraham’s” (who is a brand ambassador of Yamaha) bikers image helped Yamaha to attract youngster for superbikes.

Yamaha’s superbikes will regain its market share in India like it had gained in mid 80s during RX-100 and RD 350 series era.

Superbikes customers are from metros and the road condition in metros are good for superbikes as compared to other cities.

Honda’s CBR1000 RR and Suzuki’s Intruder & Hayabusha are Yamaha’s competitors.

Harley Davidson and Ducati’s had launched its superbikes in India and are big threat for Yamaha’s superbikes.

Suggestions •

Yamaha must focus in its performance bikes. Though this segment accounts for only 20% of the bike market, Yamaha has taken its share in this segment to more than 7% in the first quarter of fy10.yamaha has got brand


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Abhijat Kumar Shukla

name in this segment. •

Yamaha should also remain in the entry level & executive segment bikes, and should launch some fuel-efficient bikes. This segment would work as an advertisement platform for Yamaha. This segment can increase Yamaha’s market presence.

Yamaha should increase its distribution network. Provide spares for its older bikes which are present in the market. Organize some rallies for its performance bikes to increase its popularity, like Royal Enfield.

Yamaha should introduce some bikes in between 150cc to 1000cc.this segment is dominated by Royal Enfield (350cc -500cc), Bajaj (180cc -220cc).

In the year 2001, Yamaha had launched Cruiser Bike ‘ENTICER’ (125cc) which was well in built, fuel-efficient in cruiser category and comfortable. The competitors at that time were Kawasaki –Bajaj’s ‘Eliminator’, Royal Enfield’s Thunder Bird. Yamaha withdrew this model in 2003.my suggestion is Yamaha should introduce its cruiser bike (200-250cc) in India as at present this segment is dominated by Bajaj’s ‘Avenger’ and Yamaha would surely get its market in this segment. Though this segment‘s share is only 7% in the automobile market but cruiser bikes require technical expertise and Yamaha’s core competency is in performance bikes.

Limitations •

Only 45 respondents are surveyed, therefore finding is not universal.

Respondents were reluctant to give answers to the questions.

Unwillingness of the respondents to answer the questions, as they don’t take these seriously.

Questionnaires were structured therefore respondents were not able to give a proper answer.

Respondents were busy in his personnel work.

Time for the study was limited.

REFERENCES 1.

Articles from Bike India magazine.

2.

Articles from Overdrive magazine.

3.

Yamaha’s position from Yamaha’s website.

4.

Articles from Business World.


1.Prospective.full