prospective approach of yamaha’s superbikes · pdf file ·...

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.

International Journal of Business Management

& Research (IJBMR)

ISSN 2249-6920

Vol. 3, Issue 2, Jun 2013, 1-18

© TJPRC Pvt. Ltd.

2 Abhijat Kumar Shukla

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 3

• 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


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.


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.


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


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. Classes No. of

Classes Location

1. Service class 12 Delhi

2. Business class 12 Delhi

3. Employed 21 Delhi, Bilaspur & Raipur (Chhattisgarh)

Total 45


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 No. of

Respondents

Percentage

Male 45 100%

Female 0 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

No. of

Respondents Percentage

STUDENT 12 26.67%

BUSINESS 12 26.67%

EMPLOYED 21 46.66%


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 No. of

Respondent Percentage

10,000-15000 - -

15000 - 25000 09 20%

25000 - 35000 12 26.66%

ABOVE 35,000 24 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

No. of


Passion & Thrill 27 60%

For Status symbol 03 6.67%

For more power 12 26.66

Need 03 6.67%


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

No. of

Respondents

Percentage

Yamaha’s Image 09 20%

Quality 09 20%

Performance 27 60%

Looks

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?

No. of


For style 15 33.34%

Due to traffic condition 03 6.66%

Status symbol 12 26.66%

Car is common and superbike is

uncommon in India 15 33.34%


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

No. of

Respondent Percentage

YES 36 80%

NO 09 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?

No. of

Respondents

Percentage

Its design 12 26.67%

Its performance 30 66.67%

Its quality

All above 03 6.66%

Its price


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

No. of


Advertisement 27 60%

Film 06 13.34%

From People 06 13.34%

From other source 06 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

No. of


YES 36 80%

NO 09 20%

CAN NOT SAY

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


• Do you think it was a favorable time for Yamaha to launch its superbikes in India in 2008?


Did Yamaha Launch its

Superbikes n Favorable Time?

No. of


YES 33 73.34%

NO 09 20%

CAN NOT SAY 03 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 RX-

100 & 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

No. of


YES 27 60%

NO 06 13.34%

A LITTLE GAIN 09 20%


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?


Table 14: (A) Yes (B) No (C) Somewhat (D) Cannot Say

John Abraham’s Image Helped

Yamaha to Attract Youngster to

go for Superbikes?

No. of


Yes 33 73.34%

No 06 13.34%

Somewhat 03 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?

No. of


HONDA CBR 1000RR 18 40%

Suzuki Intruder 09 20%

Harley Davidson 12 26.67%

No one can compete Yamaha 06 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?



Yamaha Will be

Benefitted Due to

Pioneer Status

No. of


Yes 36 80%

No

Cannot say 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

No. of


Certainly 12 26.67%

Only a small percentage of metro 33 73.33%

No one is ready

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


Yes 27 60%

No 18 40%


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. Xi (X I - X¯ ) (Xi -X¯)2

1 27 -1.9 3.61

2 27 -1.9 3.61

3 15 -13.9 193.21

4 36 7.1 50.41

5 30 1.1 1.21

6 27 -1.9 3.61

7 36 7.1 50.41

8 33 4.1 16.81

9 27 -1.9 3.61

10 33 4.1 16.81

11 18 -10.9 118.81

12 36 7.1 50.41

13 33 4.1 16.81

14 27 -1.9 3.6

TOTAL 0.4 532.93

∑ 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


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


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.

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