Yamaha Marketing Channels - Research Paper Example

Yamaha Marketing Channels Introduction A man called Genichi Kawakami who is also the first President of the Yamaha Company (Smokie, 2013) started the Yamaha Motor Company in the year 1953. It was in the same year that Kawakami used an old aircraft machine to make his first machine. When the Company started, it manufactured auto parts, scooters, sewing machines and even three wheeled motors. However, due to the stiff competition from other manufacturers of these machines, the Yamaha Company specialized on the production of motorcycle. In the year 1954, the first model of Yamaha motorbike (YA-1) was complete. After a rigorous road test of the this motorbike, the founders of Yamaha Company built a factory too start the mass manufacturing of the YA-1 motorbike at a place called Nipon Gakki. On first of July 1955, the Yamaha Motor Co., LTD was founded. During that year, the Company had over 270 who were able to manufacture 200 YA-1 motorcycles in one month. This fast growth influenced the company to engage its motor cycles into the two top races in Japan; the Asma Highlands race and the Fuji mountain race. In the year 1956, the Company came up with another model; the YC1, followed by YD-1 in the year 1957. Two year after Yamaha’s engagement in motorbike races, they made a step into the International racing in the year 1958. They finished in the sixth position in the Catalina Grand Prix, and became the first Japanese motorbike to compete in an International race. The participation of Yamaha in the Catalina grand Prix gave this brand an international recognition, since many people worldwide began appreciating the Yamaha technology, especially in the USA (Smokie, 2013). That same year, the Company began marketing their own machines independently in the United States of America. Two years later after this venture, an American motor Company, The Cooper Motors, started selling the YD-1 and the MF-1 bikes from the Yamaha Motor Co., LTD. This continued up to the year 1960, when the Yamaha International Company begun advertising motorcycles in the United States of America through merchants. Having explored the motorcycle market, Genichi, the President of Yamaha International, began focusing on manufacturing of outboard boats and the Yamaha motor boats (Smokie Riders, 2013). In 1966, the Yamaha Company opened motorcycle-manufacturing industries in Mexico and Thailand. In late 1960s, Yamaha produced an off road motorcycle, DT-1 model. This off road model brought a very huge impact in the motorbike industry in the United States and was a very big success to the Yamaha Company. In the year 1972, the Toyota and Yamaha Companies came together and designed the Toyota 200 GT. With more inventions in the Yamaha International, the Company continued to grow in terms of the machines they manufactured. Among the machines that they created since then includes; race kart engines, snowmobiles, ATVs, generators, scooters, and personal watercraft. The greatness of the Yamaha International Company is attributed to its first President, Mr. Genichi Kawakami, who believed that, production of goods with character and honesty in service to the clients is the key to success of any business. Activities of Yamaha International Corporation Apart from manufacturing of electronics and automobiles, the Yamaha Company has engaged in so many activities. The Company is involved in sporting activities where they participate in motorbike racing competition (Yamaha Motor Co., 2013). The Company aims at promoting sporting activities in Japan, for example, the Japanese Rugby Team. They are actively involved in operating training schools for young sportsmen for yachting, soccer, and rugby. After sale services is another activity that the Yamaha Company offers to its customers. Raw materials and the Manufacturers of Yamaha The products of Yamaha Company are made of metal alloys, wood, and plastic and rubber materials. The Company uses metal alloys in the manufacturing of its pianos, for example, the acoustic pianos that is very popular in the music industry in the world. The bodies’ motorcycles, motorboats and even other electronic materials are made of alloys and a combination the other products listed above. The major raw materials used to make these products, for example, the S series piano and guitars, is wood which is acquired through a procurement process form outside Companies. It is from this stage that these raw materials are modified by the engineers of this Company into their final products. Manufacturing industries of Yamaha are well distributed worldwide, with major distributors being in Japan, United States of America, United Kingdom, Mexico and other leading world economic power houses. Examples of a few manufacturing houses include Yamaha Europa G.m.b.H. (Germany); Yamaha Electronics (U.K.), Yamaha Electronique Alsace S.A. (France); Yamaha Electronik Europa G.m.b.H. (Germany); Yamaha Musique France S.A. Among these International manufacturers of Yamaha products, Yamaha Motor Corporation of the USA is ranking high in the production output (Globe Newswire, 2013). It manufactures automobiles like the outdoor power equipment, Side-by-Side vehicles, ATVs, motorcycles, personal watercraft, boats, accessories, outboard motors, and snowmobiles. Downstream Partners of Yamaha These individuals are responsible for the sales of Yamaha products to the customers. One of the major wholesale distributors of Yamaha products is the Pacer Distribution Services, Inc., of the USA. Asia is the major source of Yamaha product; therefore, these goods are transported by ship to the USA where this wholesaler Company takes over the business of distribution to the retailers (Globe Newswire, 2013). The goods are received at the port in containers, from where this distributor carries out services to these products before distribution. These wholesalers then take up the duty of supplying the retail outlets of these machines and automobiles among the regions in the USA, for example, the West Coast Dealers Network, which is one of the major retailers of the Yamaha products. Yamaha being an international brand with variety of products, this Company has a wide range of customers from all over the world. One of their clients is the transport sector worldwide. It produces a lot of automobiles and engines that are critical in the transport industry. The Company has served the marine transport sector with the production of motorboats and watercraft boats. This has enhanced the water transport sector. Motorbike racing Companies are also a core customers of the Yamaha Company. Since the production of the YC-1 and the YD-1 motorcycles, that took part in the Catalina Grand Prix, Yamaha Company has won the trust of most motorcycle competition all over the world. Music industry is among the clients of the Company. Production of quality pianos, speakers, and drum sets and other useful music instruments have kept the interest of music institutions and artist on the products of this Company. The land transport sector is not left behind among the clients of this Company. Many Yamaha motorbikes are used all over the world for private and public use for transport. These include traffic police officers and even presidential security services. Classification of Retail Markets Retail shops are categorized according to the following concepts. Firstly is the amount of services that they offer to the clients. Retails centers that provide goods and services to the customers, for example, restaurants, conference rooms, and entertainment under one roof are popularly known as a Mall (Weitz, 2012). Marketing Malls normally provide a variety of goods and services; however, they have only one outlet. The Yamaha International Company also takes advantage of the shopping malls worldwide to display a range of their products to their clients. Since malls are associated with the wealthy members of the society, it becomes an appropriate platform to exhibit and carry out the sales of the Yamaha products. Items like pianos, drum sets, headphones, and even the motorcycles are franchised in Malls. The second category of retails is through the product lines. There are single line stores, which are known to supply one type of product. It can be either a good or a service to the customers. The Yamaha Company has single line retail stores where they deal with single types of goods, for example, the music stores where they sell items like the piano, headphones and Yamaha speakers to their clients. Pricing is also used to classify retail shops. Through market, segmentation and differentiation manufacturers are able to serve the heterogeneous market, by producing goods and services that are appealing to each individual in the market. Differences in income level, education and occupation gives rise to the need of setting up retail stores where individuals can easily acquire products of their own interest. In terms of Organizational approach, retails are either referred to as a partnership outlet or a sole proprietor outlet. Partnership refers to two or more individuals jointly own the retail, but seniority in its management is determined by the amount of shares that each partner has. On the other hand, sole retailers are single individuals who set up a retail outlet. Wholesalers of the Yamaha Company products are in agreements with a number of retailers in many countries in the world in order to facilitate the sales of these products. Segmentation of Yamaha Market Market Segmentation is the way a Company meets the needs of the heterogeneous market they are serving by providing different goods and services (Johnson, 2013). Markets are normally segmented in terms of age, sex, income level, occupation, and education (Samuels, 2013). Yamaha International Company has segmented its market, and is able to serve a number of people with different tastes, economic status, and even professions. Yamaha manufactures motorbikes, motorboats, and pianos. Focusing on one product, for example, the Piano, this Company has segmented its customers by manufacturing different types of pianos. Yamaha sell a number of S series and grand pianos, which are preferred by elitist and large institutions, there are also, M and T series, which are sold at lower prices. This ensures that both the wealthy and lower class members of the society are able to acquire a Yamaha Piano. Motorcycles manufactured by this Company are also designed in different designs and styles in order to fit the needs of different customers, for example, the 2014 model of Yamaha grizzly 550 FI, the off road DT-1 which are designed differently and sold at varying prices. Target The Yamaha International Company targets to serve all classes of users for example, households, transport industries, and even the music industry. This is closely related to the market segmentation in which this Company has managed to serve since the early 1960s. It targets to provide quality pianos to the all members of the society and institutions that are interested in doing music. In order to meet their needs, they manufacture pianos of different models and design, which they sell at different prices depending on its quality and functionality (Martin, 2013). To the transport sector, the Yamaha Company manufactures motorcycle used in land for normal means of transport as well as motor racings. It also manufacture motorboats used on marine transport purposes. This Company has not limited its target to the wealthy and older members of the society alone. It manufactures toys for the children. There are also Yamaha Motorbikes that are designed for use by children for leisure purpose and even for competitions. Therefore, their products are designed for all age groups in the society. Differentiation Differentiation, which is the process of creating a unique product that has numerous advantages over other products, is a strategy that has led to the success of the Yamaha International Company (Martin, 2013). Differentiation was a priority for the first President of Yamaha, Mr. Genichi, who always said that creation of goods with characters and special treatment of customers is the key to a successful manufacturing Company. He motivated his engineers to develop quality goods are outstanding in the market. This came as a reality when the Company manufactured the first off road motorcycle in the industry, DT-1, which greatly affected the motorcycle industry in the USA. It is also due to the uniqueness of the products of this Company that gave it worldwide recognition after their participation in the Catalina grand prix competition. Differentiation helps in creation of attention. Large Companies with big market share all around the world ought to practice differentiation in order to attract new and retain their customers trust in them. Implementation of differentiation focus has enabled this Company to manufacture goods that are appealing to all the market niches they serve, for example, household electrical gadgets, motorbikes, and music instruments. Yamaha Company has created its brand name by manufacturing appealing goods. There are a number of advantages that the Yamaha Company enjoys as a result of product differentiation in the market. These include creativity as engineers of this Company continually invent new products or come up with ideas that enhance the existing ones. Differentiation has also reduced the chances of other Companies that would create competition from entering the market; therefore, the Yamaha enjoys monopoly. Positioning Product positioning is the strategy for passing across the message that tells the target market about what is making your products unique among all other similar products (Kokemuller, 2013). Yamaha’s products are of distinct character and that is what has cemented their position in the market despite the presence of stiff competition from other similar producers in the market. For product positioning as a strategy of building a successful business, the management of the Company has to come up with a strong statement that reflects the mission, vision and the values of that specific company. Yamaha was influenced by the strong belief of its first president, Mr. Genichi, who believed in production of quality good with character and customer satisfaction as the secret behind a successful business. Marketing Mix Marketing mix is the number of considerations that have to be put in place in order to ensure successful marketing. These include, Price, Place, and Promotion (The Chartered Institute of Marketing, 2009). Yamaha International Company wisely combines its marketing mix by producing quality products that are outstanding in the market. They are appealing to a large section of the market segment that they target. Pricing policy of Yamaha is yet another strategy that this Company has employed in order to keep hold of its customers. Customers are normally satisfied when they realize that they have acquired worthwhile goods and services. Mr. Genichi, who is the first President of Yamaha, always stressed on the production of goods with character in order to appeal to the customers. This does not mean that products of Yamaha are selling at a cheap price; rather, they are selling at competitive prices where by customers feel the values of their money at the end of the day. This Company spends a great deal in the promotion of its products. These activities include advertising, positioning, after sale services, PR activities, and branding. The places where Yamaha products can be bought are also widespread. This Company has wholesaler and retail outlets in many countries worldwide. Apart from the physical locations, a customer is also able to access these products online over the website of Yamaha International Co., LTD. Conclusion In conclusion, the Yamaha International Co., LTD is a force to reckon with in the manufacturing industry of automobiles. The production of quality goods that are appealing to a larger section of market niche that you are targeting is the key to success of any business. The secret of Yamaha’s success is market segmentation, differentiation, and pricing policies, which has cut across the population of its customers. Works Cited Globe Newswire. Pacer Distribution Services Revs Up Yamaha Motor Corporation's Supply Chain, 2013. Johnson, Walter. Segmentation Strategy for Pricing Pianos Sales, 2013. Web 7 December 2013. Kokemullar, Neil. Positioning and Differentiation Strategies in Marketing, 2013. Web 7 December 2013. Martin, Melanie. Examples of Differentiation in Marketing. 2013. Web 7 December 2013. Samuels, Dave. Difference between Market Differentiation and Market Segmentation, 2013. Web 7 December 2013. Smokie, Riders. Yamaha History, 2013. Web 7 December 2013. The Chartered Institute of Marketing. 2009. Marketing and the 7 Ps. Web 7 December 2013. www.cim.co.uk/marketingresources Weitz, Levy. Types of Retailers. 2013. McGraw Hill Companies. Yamaha Motor Co., LTD. Sporting Activities. 2013 Web 7 December 2013. Read More