Yamaha YBR 125 Abdul Ghani Shahzaib Marketing plan for new product Submitting to Sir Waqas Mazhar 16FMBA2E006

Company and Industry Background Company History: Yamaha Motor Pakistan (abbreviated as YMPK) is a 100% subsidiary of Yamaha Motor Co., Ltd. YMPK is the sole manufacturer and distributor of Yamaha Brand Motorcycles in Pakistan, established in Mar 2013. The company is registered with the Ministry of Commerce for assembling, manufacturing, marketing, distributing, selling and/or servicing Yamaha Motor Pakistan (Pvt) Ltd brand motorcycles and their parts and accessories in Pakistan. Mission Statement: “Yamaha Motor Pakistan (Pvt) Ltd strives to realize everyone’s dreams with ingenuity and passion, and to sustain its position as a company people look to for the next exciting product or concept that provides exceptional value and deep satisfaction.” Key competitors: DYL, Honda, Suzuki,

Characteristics of YAMAHA ’s motorcycle YAMAHA has a reputation of making well–designed and personalized motorcycles that are universally accepted. Behind the characteristics is the YAMAHA’s effort to identify customer’s need and create original parts adjusting to each motorcycle model. Furthermore, the motorcycles use adjustable parts to enable riders to customize their own motorcycles. These features are inherited from the former YAMAHA’s company spirit, “adjust the instruments to people” These unique characteristics push YAMAHA motor forward to the second largest motorcycle company after Honda.

Competitive Environment We are… Supplying advanced products that increase customer satisfaction and offer superior performance, design and quality. Promoting production and development technologies that help enhance Pakistan’s international competitiveness. Developing human resources, job opportunities, and business leaders in Pakistan. Threat of Entry: Low. High Brand Awareness, economies of scale. Industry Rivalry: Medium. Products are interchangeable Few established competitors Supplier Power: High Auto parts are available throughout Buyer Power: Medium. product sold through smaller retailers with limited bargain. Substitutes: Medium. Other extreme sports such as mountain biking, climbing, etc

SWOT Analysis Strengths: Good quality Long life engine High mileage Unique product offering Technology Style Brand Weaknesses: Wrong focus segment Emphasis on value for money Wrong trend Opportunities: Innovation Increased product quality Product for rural areas Big market (domestically & globally) Threats: Competition Government Laws

SWOT Analysis Strength Yamaha has good quality motor bikes. Their bikes engine are long lasting and fuel efficient. They uses Japanese technology for their products. They offers unique products to market. They have different styles of product and they are known for their brand image in motor biking industry. Weakness They were previously focus on wrong segments. They emphasis on manufacturing value for money products. The trend on focusing on rural industry was wrong. Opportunity They have innovated opportunity to launch their new products. They have increased quality products like R15 and FZ16. They have opportunity to rule for urban as well as rural areas. They have big market opportunity domestic and internationally. Threat Yamaha have lots of threat from their competition. Yamaha is wary of competition from the well entrenched players but hopes to counter the competition through its unique product offering.

Market Planning

Growth Achieved Motorcycles Products 2001-02 2005-06 2006-07 2007-08 Number in 000 Motorcycles Products 2001-02 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Motorcycle 137,273 751,379 839,850 1,058,109 976,842 1,380,184 1,600,781 1,640,205

Segmentation and targeting Segment: Youth of the Nation Size: 60% population of the country Growth rate: High growth rate expected Access to segment: accessible Geographic concentration: Urban Areas Emotional motives: high Company fit & ease of business Other business opportunities provided by the segment: immersion in extreme-sports! Targeting…

Target market selection: Product Specialization Demographics   most riders are 18-to-40-year-olds Geographic targeting: Pakistan (30 Divisions, 130 Districts) Social/cultural influences inspired by sport bikes came to rebel the more sophisticated way of riding Purchasing behavior: high appealing durable good less frequent purchases greater consumer investment more intensive market selling

Differentiation & Positioning Brand differentiation strategy Yamaha provides functionality, durability and high quality associated with active, healthy lifestyle brand extension opportunity: positive consumer expectations, retailer support, leverage current brand awareness, and reduced cost of the launch campaign Brand positioning strategy Create the perception of high-tech value-added product Association with Yamaha Global

4 P’s of Product

4 P’S of product Product This is the most important thing in the mix, the physical product or the service that the entity is offering for sale to the public. We will need to market this to the customers by telling them the unique features and benefits the product has to offer as Yamaha did most of the time when its value for money they emphasis on that, when it’s about looks and image they shows that as well. Price This is the price or amount that the customer needs to giveaway in exchange of the product or service we are offering. Marketing strategy will need to ensure that people will get the perceived value as greater than the price they will need to giveaway. Yamaha give the price of normal bikes and gave the looks of superbikes. Placement Placement or distribution, we will need to spell out where the product or service is available. This may either be online or offline, we will need to inform the public where the products may be available. Yamaha places their products in showrooms as well their full descriptive images online. Promotion We will need to promote the product or service whether online of offline. Online marketing makes it cheaper to conduct promotions and reach as many people as possible. Yamaha mostly uses brand ambassadors for the products and also promotes in motorcading.

Next 3 P’S of product The next three P's People In order for any marketing activity to be effective, to will need to train and motivate the people to do their job. The people that delivers the product or service and those that come in between the customer and the manufacturer needs to know their job for the strategy to work. People may also refer to the customers who will need to buy our products, they are very important to be considered in the development of our marketing strategy. Yamaha trained their people on routine intervals so they can get the best out of them. Process Customer satisfaction is one of the most important roles of marketing. If we can follow the process of delivering high quality service or products to the customers, our marketing efforts will never be wasted. As Yamaha did uses the process and deliver the right product on right time. Physical evidence Online, it is difficult for the customer to know how the product is going to benefit them. Thus, we will need to create an element by which the customer will be able to feel, taste and smell the product or experience the service. We can do reports and articles that will excite the customers about the product and the service. Yamaha shows the physical evidence of their products in commercials, movies and road shows.

Core Product Strategy

…Benefits Core : Heavy Bikes Basic: Sports and Hi Tech Motorcycles Expected: high speed and agility; Competitive prices and features.. …Benefits