POM - Overview of Yamaha\'s marketing PDF

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HANOI UNIVERSITYFACULTY OF MANAGEMENT AND TOURISMYAMAHA EXCITER MOTORCYCLES(Word count:)Group members:Lecturer:               Nguyen Phuong LienTutor: Luu Thi Minh NghiaTABLE OF CO...

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HANOI UNIVERSITY FACULTY OF MANAGEMENT AND TOURISM

YAMAHA EXCITER MOTORCYCLES (Word count:) Group members: Lecturer:

Nguyen Phuong Lien

Tutor:

Luu Thi Minh Nghia

Abstract

Through many years of appearing in Vietnam Market, Yamaha has made up an important position in the motorcycle industry. Especially, Yamaha Exciter has caused a great resonance from being launched with quality products for customers. To have better understanding about the marketing activities in the enterprise, we chose Yamaha Vietnam to analyze the market situation in this business with clutch products, namely Yamaha Exciter. Therefore, this report based on secondary research that includes available information and things we considers to broaden new knowledge. This paper shows an overview of how successful brand is and how brand brings consumers closer to their products.

TABLE OF CONTENT Abtract.............................................................................................................................................. ............. Company background introduction....................................................................................... I.

Marketing

envinronment............................................................................................ I.1. Microenvironment..................................................................................................... 1. Company.............................................................................................................. 2. Suppliers.............................................................................................................. 3. Marketing intermediaries..................................................................................... 4. Competitors......................................................................................................... 5. Publics.................................................................................................................. 6. Customers............................................................................................................ 6.1. Characteristics affecting consumer behavior................................................ 6.2. Buyer Decision Process I.2. Macroenvironment................................................................................................... 1. Technological Environment................................................................................. 2. Economic Environment....................................................................................... 3. Political Environment.......................................................................................... 4. Demographic Environment.................................................................................. 5. Natural Environment...........................................................................................

6. Cutural Environment........................................................................................... II. Marketing strategy 1. Segmentation....................................................................................................... 2. Target market....................................................................................................... 3. Differentiation..................................................................................................... 4. Positioning........................................................................................................... III. Marketing Mix 1. Product................................................................................................................ 2. Price..................................................................................................................... 3. Place..................................................................................................................... 4. Promotion............................................................................................................ IV. SWOT analysis Strengths.............................................................................................................. Weaknesses.......................................................................................................... Opportunities....................................................................................................... Threats................................................................................................................. V. Issues......................................................................................................................... VI.

Recommendation

and

executive

plan........................................................................ References.......................................................................................................................

Appendix.........................................................................................................................

COMPANY BACKGROUND INFORMATION Yamaha Motor Vietnam is one of the most popular motorcycle manufacturers in Vietnam which was established in 1998 (yamaha-motor.com.vn). October 7, 1999, Yamaha launched the first motorcycle in Vietnam named Sirius (Ngo Minh, 2018). Until February 2006 marked the arrival of the Yamaha Exciter with its powerful engine dubbed the "King of Street" (Ngo Minh, 2018). In July 2017, Yamaha Motor Vietnam was particularly proud to organize a series of spectacular events and activities to commemorate the 1 million Exciter motorcycles sold in Vietnam during the decade since its launch. In particular, the 3,000 km journey across 4 Southeast Asian countries is the first international trip of a single model with the longest journey in Vietnam organized by Yamaha. (Ngo Minh, 2018) . By the end of the first quarter of 2018,

Yamaha's market share currently accounts for about 25% in the Vietnamese motorcycle market (Dieu Tuyet, 2016). https://yamaha-motor.com.vn/gioi-thieu/ To achieve these goals, Yamaha identified clear core value and mission: Vision: Yamaha Motor Vietnam have sense of making efforts to become an active member of the Vietnamese community, quickly contributing to the development of Vietnam's industry in the field of motorcycle production. The power of Yamaha Motor Vietnam is towards a desire. (Yamaha website) Core Value: Safety - Flexible – Good service Yamaha is applying the core value into their service very well. It expresses their safety value by stimulating advanced levels of preventing to protect all users. About flexible value, Yamaha have created a flexible manufacturing system that enables the company to quickly and efficiently adjust to market demand (Thanh Tran, 2017). In terms of good service, Yamaha focuses on Young & Sporty as its sponsorship priority via various programs (Nguyen Hanh, 2019) and Yrider Community - an independent hobby club ( Yamaha web, 2015).

I.

MARKETING ENVIRONMENT

I.1 Microenvironment 1. Company a. Organizational structure In Vietnam, Yamaha organizes the company with 4 levels including Board of directors, board of managers, functional departments, and other bodies as the following structure (Le Trung Kien, 2013). Functional departments are under control of Board of Directors and Board of Managers. The organization structure of Yamaha is demonstrated as below: BOARD OF DIRECTORS

BOARD OF MANAGERS

ACCOUNTINGPLANNING

FINANCE

MARKETING

DEPARTMENT

DEPARTMENT

DEPARTMENT

Assembly factory

Agencies

ADMINISTRATION

Services

Accessories

Organization Structure of Yamaha Motor Company in Vietnam Mr. Yano Takeshi who is general director in Yamaha Vietnam claims Yamaha’s motto is to be honest with its customers (ttvn.vn, 2017) .

b. Human resources Labor force of Yamaha company has a difference in gender and qualification.

Specifically, the ratio of male is much higher than that of female workers. In terms of qualification, high-school workers who directly manufacturer to supply motorcycles to the market account for the largest proportion of Yamaha labor structure. Meanwhile, it has a small number of employees with university - degree (luanvan365.com). In Vietnam, 66% of technicians of Yamaha have a certificate for their skills (ttvn.vn, 2017) The Degree

Total

Gender

Working characteristic

denominated

quantity of high school workers

relative

to

university employees is Quantit

Ratio

Male Female

Direct Indirect both strong and weak point

y

of

Yamaha

Company. It is a large University

325

11%

201

124

0

325

College

242

8%

201

41

200

420

resource for Yamaha in manufacturing, but a low ratio of employees leads to

a

difficulty

in

controlling activities in

Trade

152

5%

95

57

152

0

2304

76%

1605

699

2154

150

3023

100% 2102

921

2506

517

Head Office.

School High School Total

Labor Structure of Vietnam Yamaha Motor Company (luanvan365.com).

c. . Financial resources Yamaha company owns a charter capital of 37.000.000USD including 46% of Yamaha Motor Japan Co., Ltd, 30% of Vietnam Forestry Corporation – JSC and 24% of Hong Leong Company Malaysia (Le Trung Kien, 2013). According to statistics from investing.com, Yamaha encounters a stable financial situation during period of 2015-2018. This financial features are sustainable basis for Yamaha implement business activities, partly create reliability to its customers.

Total equity Total

liabilities

&

2015

2016

2017

2018

490790

534166

622802

657475

1318776

1415845

1420854

349.24

349.24

349.23

shareholder 1305236

equity Total number of common

349.22

stocks outstanding

Financial Situation of Vietnam Yamaha Motor Company from 2015-2018 (vn.investing.com)

2. Suppliers

Yamaha always has a great concern about quality and relationship with suppliers. Yamaha sets strict criteria to make a choice of suppliers carefully because the company has a great consideration about value it delivery to customers (Yamaha Group Purchasing Philosophy, Yamaha.com). Beside the careful selection, the key principle of Yamaha to penetrate with suppliers is by the fair and sustainable relationship (Business partner, global.yamahamotor.com). It connects with suppliers over the world and treats them as partners, which helps it rely on to take advantage of quality, input costs, delivery, and so forth. Currently Yamaha has more than 100 suppliers of components and accessories, of which 90% are Japanese joint-venture enterprises (ttvn.vn, 2017). Machinery Spare Parts No1 Joint Stock Company (FUTU1) is one of the biggest suppliers of Yamaha (Bao cao thuong nien, 2018). Moreover, Hi-lex, Nissin, and Elig are other Yamaha’s partners for supplying spare parts (rong bay.com)

3. Marketing intermediaries a. Distribution intermediaries Yamaha distributing agencies are Yamaha 2S, Yamaha 3S (Yamaha Town) which introduced and sold Exciter motorcycles to customers in all 63 provinces in the country with over 300 agents and showrooms (Thang Nguyen, 2018). The list of distributing agencies through the country is posted on the website of Yamaha (Dai ly, Yamaha-motor.com.vn).In addition,

Yamaha

agencies

partner with VRED to distribute genuine (blog.vred.vn, 2018).

Yamaha Town in Hanoi

motorbikes

Admicro is a marketing agency, a partner providing

marketing

plans to Yamaha with successful campaign such as “Yamaha - For the beloved women” – one of the campaign

attracting

from many

people

attention (Phuong

Thao, 2018).

“Yamaha - For the beloved women” is in top 10 successful campaigns b. Marketing intermediaries c. Financial intermediaries FE Credit, HD Finance and Home Credit are financial intermediaries supporting financial transactions between customers and Yamaha. In 2015, Yamaha corporates with these organizations to implement a program called “Luot xe dang cap, tra gop nhe nhang” for Exciter motorcycles (Yamaha, 2015). In addition, HD SAIGON and Yamaha offer several deals to enhance customers’ benefit when paying by amortization (thoi bao ngan hang.vn, 2019). These above intermediaries are strong partners of Yamaha company in Vietnam. They are not only normal partners, but also act as channels connecting Yamaha to customers, boosting Yamaha’s sales. 4. Competitors

5. Publics a. Media publics: Yamaha cooperates with some magazines like Sport magazines, Racing magazine, Motocross or Dirt Wheels magazine show out their product’s advantages. In addition, Yamaha also joined some social media network (Facebook, Instagram, Youtube,etc) in purpose of connecting customers, providing them information and receiving customer’s feedback.

YAMAHA RACING MAGAZINE b. General publics: -

Mentioning about Yamaha, people usually think of the moto brand with fashionable, sporty design with good engine quality. However, Yamaha Vietnam is famous for high fuel usage level. This can be considered as one of the disadvantages.

c. Internal public Yamaha makes effort to build sustainable with its employees. every year, the company organize some team building events called “ Chien binh Ninja” enhance social welfare, and helps to improve connection among employees in the company. (vietwindteambuilding.vn, 2019)

Team building for employees ( Source:vietwindteambuilding.vn.) 6. Customers 6.1. Characteristics affecting consumer behavior. a. Cultural factors In Vietnam, characteristics of roads are different from that in Western countries. There are usually many small lanes and alleys causing a difficulty for moving by big vehicles. Therefore, Vietnamese has a high demand for using motorbikes which reaches over 2.5 million motorcycles (Tanyatorn, 2014). In terms of social class, Vietnamese is on trend of middle class with average income of 15 million VND per month (ANT Consulting Co., 2017). b. Social factors For high-value products such as motorcycles, it is natural to consult the information before buying. Moreover, motorcycles are a product with many consumers. Therefore, social factors will more or less affect consumption behavior. (Nguyen Xuan Bao Son, 2008).

c. Personal factors Yamaha exciter is a vehicle for those who love adventure, challenge, discovery and like travelling with friends or lovers. Particularly, Yamaha Exciter is a superior selection for unmarried couples because they want to jointly travel to have a great time together. d. Psychological factors Following the Maslow’s Hierarchy ladder, having personal vehicle is the first desire that they want to fulfill. It started from the needs of self-controlling time and money. Second, they consider safety factors. They consider the design, its engine power level, and other features that can ensure their safety while using the bike. Thirdly, they care about the appearance of the vehicle whether it matches to their lifestyle. In this category of customers’ perception, they process the information received from the society. They will also search for the bike’s sale volume and reviews of those bikes from other customers. This information will form their perception about the product and lead to the final decision.

6.2. Buyer Decision Process a.

Need recognition

Buyer’s decisions tend to be influenced by two forces: internal stimuli and external stimuli. Internal stimuli usually comes from the customer’s personal needs. According to that, having personal vehicle, time and money controlation, showing off lifestyles, classical level and having what their friends have are included. External stimuli, meanwhile, are about the effect of other customers’ opinions, reviews or that from their family and friends and external conditions like traffic. b.

Information search

Consumers can search almost information of Yamaha Exciter through official link on the Yamaha website, advertisements on social network or events, clubs. In 2018, OYamaha Motor Vietnam co-organized the Exciter Festival to express gratitude to customers, connect Exciter clubs and celebrate the upgraded new Exciter version. (Sai Gon Giai Phong, 2018). c.

Evaluation

In the following step, consumers will evaluate alternatives in the same segment by making comparison based on attributes (style, design, price, convenience) that they focus to gain purchase decisions. Yamaha Exciter is more about sport motorcycles, strong design and new features, so, they will bring the greatest experience for users. d.

Purchase decision

Buyers may decide to purchase Exciter motorbikes or not through two factors: attitudes of others and unexpected situations. It’s more likely for them to buy if they are given an advice from relatives, friends who encourage them to purchase Exciter. e. Post purchase Yamaha Vietnam "strong hands" spend heavily on "after-sales" service with the FI Shop system - the equipment for testing and cleaning electronic fuel injectors, applying strict standards. (Vietnam Laws magazine, 2014). June 18, Yamaha announced that it will conduct a recall to check and replace the rear brake light switch cluster for free. In addition, customers were offered a free bottle of carbon descaling solution and free oil change in the next two maintenance visits. (Trong Tin, 2015) I.2. Macro-environment Technological environment -

Yamaha

advantages

Exciter of

scale

technology,

in good

Political environment - Regulation from traffic law,

with and

advanced technique platform invested

Economic environment

modern quality,

reasonable price and meet the requirements of standardized quality (Tuan Vu, 2018)

- GDP of VietNam increase gradually

from

2018, especially

2016 in

to

2018,

GDP reached the highest from 2011, 7.08% (Hoa Binh, 2018). - Average income per capita

fuel economy, noise, safety of consumers,

polluted

environment

has

influence

on

industry

which

strongly

motorcycles requires

Yamaha Exciter motorcycle change to adapt to customer

demands and environmental Due to the development in VietNam in 2018 is 2,587 issues. of Internet, Yamaha Exciter USD (Thuy Mien, 2018) -

can access easily to customer

- Vietnamese law stipulates

and saving operation cost.

that people who are fully 18

Customers can save much

years old can use a motorbike

more time, transporting costs.

which has capacity above 50cc. Hence, i...