SEVERAL SOLUTIONS TO EXPAND MARKET SHARE OF YAMAHA MOTOR VIETNAM

Introduction of Yamaha Motor Vietnam

Yamaha Motor Vietnam Limited Company (YMVN) was established on April 1 st ,

Established in 2000 under investment license No 2029/GP, this joint venture includes HONGLEONG Industries BERHARD from Malaysia, Vietnam Forest Corporation, and CODO Mechanical Factory from Vietnam, with Yamaha Motor Co., Ltd from Japan as a key stakeholder.

Vietnam Forest Corporation owns 46% of YMVN, while CODO Mechanical Factory Vietnam holds 30%, and the remaining shares are held by HONGLEONG Industries Berhad Malaysia The company is headquartered in Hanoi, with a branch office in Ho Chi Minh City, and has a registered capital of USD 24,250,000 YMVN occupies a land area of 100,000 square meters, with a building area of 22,000 square meters, and currently employs 1,057 people.

Yamaha Motor Vietnam (YMVN) specializes in producing motorcycles and spare parts for the Vietnamese market, while also offering comprehensive services to Yamaha motorcycle users The company has introduced various motorcycle categories in Vietnam, including the recently launched Jupiter MX and Exciter 135 models in 2006 YMVN is dedicated to a long-term investment strategy aimed at enhancing customer satisfaction by ensuring the availability of spare parts and services, thereby reinforcing its value in the minds of Vietnamese consumers.

Understanding the business environment of YMVN is crucial for gaining insights into competition, regulations, and market demand Additionally, the marketing communications landscape is influenced by the accessibility of media and marketing agencies, which play a significant role in shaping effective strategies.

External analysis

Demand measurement and forecasting

The Vietnamese motorbike market is substantial, with significant global representation as of 2006 It consists of three main segments: joint venture bikes, imported bikes, and Chinese bikes Joint venture brands, including Honda, YMVN, SYM, Suzuki, and Hoa Lam Kymco, currently dominate the market, holding over 60% of the market share In contrast, locally produced and imported bikes make up less than 40% of the market.

Figure 1: Market’s sales volume forecast

Source: Yamaha Motor Vietnam Ltd., Co, 2006

In 2001, the Vietnamese motorbike market saw total sales of 1,948,800 units, with Chinese bikes accounting for approximately 1,000,000 of those sales Despite entering the market only at the end of 1999, Chinese bikes experienced rapid growth, with sales increasing nearly 20% annually from 2005 to 2010 However, starting in 2005, there was a notable shift in sales dynamics, moving from Chinese brands to joint venture bikes known for their reputation, quality, competitive pricing, and excellent after-sales service As a result, manufacturers are now prioritizing product feature development, cost management, and enhancing customer relationship strategies.

The environment context

According to Ministry of Industry, Government’s orientation and strategy to develop the motorbike’s industry to 2015 as follows 1 :

The goal is to establish and enhance Vietnam's motorbike industry, positioning it as a key player in the manufacturing and export of motorbikes and spare parts in the region This strategic direction is set for the period from 2006 to 2010.

− To supply 90% of domestic demand, in which consisting of 100% general demand

− Domestic manufactures reach to over 90% of raw material, spare part and 95% of engine parts

− Establish chain of manufacturers, suppliers of motorbike’s part who has ability to fulfil requirement of quality, price and after sales service; distribution channel, dynamic, professional

− In 2010, to export general motorbike, parts and spare part which accounted for 450,000 – 500,000 bikes, contributes about USD300 million to export turnover

− To establish and utilize Research and Development center before 2010

1 http://www.moi.gov.vn/News/detail.asp?Sub3&id&321

Manufacturing development to serve local demand:

− Step up manufacture of spare parts, and material for motorcycle with high quality, especially in producing engine, raw material and fuel

− Focusing on investment deepening, technology & equipment innovation; modernizing some key processes in manufacturing namely precise mechanical, chemical, rubber, plastic, electronic, automation and new material

− To enhance research design new product to boost up reputation and completive ability of Vietnam motorcycle

− Investing on high class motorbike research and development that enable to consume clean fuel

− Deploying marketing activities in order to search and utilize export market, especially South Africa, West East Asia and Latin America markets;

− Boost up export motorcycle, spare parts, raw materials that have high competitive advantages, match local demand in each market;

− Enhance local collaboration, interlink to increase competitive advantage

Design new model for export.

P.E.S.T analysis

Vietnam's stable government, led by the Communist Party, is fostering a favorable business environment, encouraging both local and foreign investors to explore opportunities in the country.

Vietnam's taxation policy features a complex array of tax laws that often respond ad hoc to the challenges of foreign investment rather than adhering to internationally accepted principles This results in contradictory regulations that can be incompatible with global tax systems, stemming from a government approach that seeks to use a single tax instrument for multiple economic and social goals Businesses face various taxes, including corporate income tax, capital gains tax, and value-added tax, while high-income individuals are subject to personal income tax To attract foreign investment, the Vietnamese government offers tax incentives such as low corporate tax rates and temporary exemptions, positioning Vietnam as one of Asia's most investment-friendly environments.

At the moment, the tax rate is 40 percent Besides, the tax for spare parts imported will be decrease in the next year

As of the end of 2006, Vietnam's population reached approximately 85 million, making it the second most populous country in Southeast Asia, according to the Asiaweek issue dated October 6, 2006.

In recent years, Vietnamese lifestyle changes have shifted from a focus on saving to increased spending, particularly on durable goods like motorbikes, following the economic growth spurred by the "Doi Moi" policy of 1986 Motorbikes have become the primary mode of transportation for families due to inadequate infrastructure and limited public transportation options This essential vehicle is utilized for various purposes, including commuting, leisure, and transporting goods, making it a vital part of daily life for both men and women in Vietnam.

Since its integration into the regional economy, Vietnam has experienced significant changes in business and trade, with an average annual economic growth rate of around 8% This growth has led to improved individual incomes and a better standard of living for its citizens Additionally, Vietnam's recent accession to the World Trade Organization (WTO) has sparked a new wave of investment, further enhancing its economic landscape.

The government mandates that all motorcycle manufacturers increase the localization of spare parts to support the development of the domestic motor industry Additionally, incorporating the latest technologies in production and designing new motorcycle models is essential to boost competitiveness in the market.

Vietnam currently has 16,000 registered Internet subscribers, with a minimal number being private citizens The Internet has not yet gained significant traction among local users, as officials initially aimed for 50,000 service contracts in the coming years The majority of Internet users are foreigners and employees of private or state-run businesses, while access for private citizens is largely limited to families of government officials or wealthy individuals who can afford the high costs Consequently, Internet usage remains largely exclusive to the elite and employees of well-established companies.

Competitor Analysis

Honda Corporation is the leading motorbike brand in Vietnam, holding an impressive 80% market share in the joint venture segment With over 30 years of presence in the country, Honda has become synonymous with reliability and durability, making its bikes the benchmark for other brands Consumers are drawn to Honda for its family-friendly models that are not only popular but also easy to resell The brand’s strong market image ensures that spare parts are readily available for maintenance and repairs Honda's significant investment in the Vietnamese market further reinforces its commitment to providing quality products and services.

Honda Vietnam has invested 112 million to sustain its market share in the country, recently introducing the Wave Alpha motorcycle priced at VND 10,990,000 (USD 727) to compete with Chinese bike manufacturers.

Suzuki Corporation, a competitor of YMVN, has established its factory for several years and currently holds a 5% market share The brand primarily attracts young, style-conscious customers who are passionate about sports One of Suzuki's key advantages is its competitive pricing compared to other Japanese motorcycle models.

Imported motorcycles from renowned brands like Honda, Piaggio, and Suzuki pose significant competition in the market Additionally, Chinese manufacturers, often small enterprises, assemble and produce motorcycles and spare parts, leveraging flexible pricing as their competitive advantage These Chinese bikes frequently mimic popular Japanese models, leading to customer confusion, with many designs resembling well-known models such as the Honda Future and Yamaha Sirius.

Honda, Suzuki, and Yamaha factories in various Asian countries, including Thailand, Malaysia, Japan, Indonesia, and Korea, have historically supplied motorcycles to meet the demand in the Vietnamese market However, these sources are now facing limitations and are gradually losing market share to joint ventures and domestic manufacturers.

Customer context

Customer awareness and perception of Yamaha products are unclear and often confused, with many having limited knowledge about the brand Insights gathered by YMVN through surveys of two customers and dealer feedback highlight that both groups view Yamaha's marketing communications in a similar light.

− Differentiated well with other brands

− Knowing Yamaha motorcycle, but not sure about quality, features, stores

− Cannot prove the high value of the products supplying to market

− Cannot come out the effective control and evaluation of marketing communications tools

− Cannot identify which is the key marketing communications tool

− Customers have no many choices of sales promotion

− Confusion is caused by not using consistent messages to customers

Brand awareness for Sanyang Motor is currently insufficient, with recent research indicating that aided awareness among customers stands at only 35%, and even lower among regular motorbike users Consumers perceive Sanyang Motor's products as low quality and low price, contrasting sharply with Japanese brands that are associated with high quality and high price In the perceptual map, Honda leads the market, followed by Suzuki and Yamaha The accompanying figure illustrates the customer perception of Yamaha's brand image, providing valuable insights into market positioning.

Source: Yamaha Motor Vietnam Co., Ltd, market research, 2006

The current target market is stylish people, aged 18-30, who have an active interest in sporty bikes We categorize customers into two groups as following:

Wholesalers purchase products primarily driven by market demand rather than brand names, focusing instead on profit margins Dealers significantly influence customer decisions, as they are regarded as the most reputable motorbike sellers in their respective areas Consequently, customers tend to trust their recommendations regarding the quality of motorbikes, relying heavily on their expertise and guidance.

Motorbikes are a vital mode of transportation in Vietnam, especially in major cities like Hanoi, Haiphong, and Ho Chi Minh City The primary customers for joint-venture motorbikes are the middle to upper class, with a per capita income exceeding USD 4,000 annually For many consumers in these urban areas, motorbikes are not just a means of transport but an essential part of daily life.

Honda when they decide on choosing the bikes, they often set the hierarchy as follows:

Quality; Brand name; Price; Reselling ability; Spare-part and service availability

Many customers seek to express their social status through the bikes they ride, aiming to make a statement about their affluence Consequently, they prioritize brand names, models, and high price tags when selecting their bicycles, viewing these elements as essential indicators of style and prestige.

Influencer Family members, friend, dealers Decider User

Source: Yamaha Motor Vietnam Co., Ltd, 2006

Consumers exhibit a high level of involvement in their purchase decisions due to perceived risks associated with the intended purchase This process begins with extensive information gathering, leading to the development of attitudes before any commitment to trial is made Consequently, the information search becomes a crucial aspect of high involvement decision-making Various media sources, such as mass media, word of mouth, and point-of-sale communications, are utilized to gather insights Print media, in particular, prove to be effective as they provide a substantial amount of detailed information, allowing consumers to process it at their own pace.

Effective integrated marketing communications planning should account for the target audience's levels of involvement and motivation High-involvement purchases, such as bikes, involve significant risk, necessitating that buyers feel assured in their decision-making Yamaha positions its products in Vietnam according to the Rossiter-Percy Grid, focusing on brand attitude to enhance consumer confidence and motivation in their purchasing choices.

− When involvement is high and motivation is negative, target audience must be convinced by the message, so the communications options consideration must be able to accomplish this

Positive motives drive successful communication, emphasizing the importance of "emotional authenticity" regardless of the level of involvement Therefore, it is essential to explore communication options that effectively accommodate this principle.

Figure 4: Behavioral Sequence Model (BSM): for high involvement products

Consideration at each stage Need Arousal Information search and evaluation

Family members Friend Seller Dealer

Family members, who need the new bikes

Friends who have experience and knowledge on bikes

Where stage is likely to occur

At home, talking with friends,

At the shop, seller’s introduction

Shortly after completing information search and evaluation

How it is likely to occur

Ask, call, brochures, shop visiting, talking with sellers

Source: Adapted from Chriss Fill

High perceived risk arises for buyers due to their limited experience with the product and the purchasing decision process To mitigate this risk, it is beneficial to provide additional information via mass media, word of mouth, and personal selling Additionally, fostering brand loyalty can play a crucial role in reducing perceived risk when introducing new products to the market.

Opportunities and threats

Opportunities

- Consumers are showing more interest in fuel saving

- Government limited the import motorbikes and prohibited which motorbikes assembly factories are not capable according to government regulation

- Per capital income is increasing steadily over the past 5 years

- Road systems are upgrading and expanding in the urban and rural areas

- More merchandises are interested in doing business with Yamaha

Current consumer spending rates are positively impacting the launch of new motorbikes, as individuals are increasingly willing to invest in such products With consumers showing a greater openness to taking out loans for purchases, the market is experiencing a boost that aligns with the rising standard of living.

- Vietnam has recently become the official member of WTO.

Threats

- Competitors: The threat of rivals in the motorbike market is substantial as there are many existing competitors as well as new entrants to the market

- Buyer Bargain Power: As a result of the vast number of competitors Yamaha faces challenges from many other manufacturers as well as the used motorbike market

- Policy: Vietnam Government investment policy is not stable Investors are always worried about the certainty of policy

- Regulation of the government about the sales promotion and advertising

Mission, vision and goals

Mission

To become the leader in the Vietnamese motorbike market by achieving superior levels of customer satisfaction.

Vision

To earn and maintain customer loyalty by providing best value products and services

Goals

To achieve the long term goals of increased market share, profitability, and sustained growth, Yamaha Motor Vietnam Co., Ltd endeavors to:

− Achieve an atmosphere where the customer is the primary focus of all activities

− Stimulate and grow an environment focused on continuous improvement where people can and do make a difference

− Develop and maintain long-term business partnerships with customers, partners and suppliers

− Utilize the talents and skills of our people to diversify and grow our business

− Foster and sustain an atmosphere of ethical, social and environmental responsibility

Marketing objectives

To enhance market share in Vietnam, the strategy focuses on positioning branded products like Sirius, Jupiter, and Nouvo as premium, valuable, and sporty motorcycles This involves strengthening and expanding the dealer network to effectively promote Yamaha products and services, while also increasing the availability of dealer stock for end-users Ultimately, the goal is to boost profitability in the Vietnamese market through increased market share.

Based on the marketing plan of Yamaha Motor Vietnam, the author discovers that the marketing objectives in the year 2007 are quite challengeable but they are still achievable

In 2007, YMVN aims to achieve total sales valued at USD 2,778,884,940 by reaching a unit sales volume of 1,877,625, which corresponds to an anticipated market share of 32 percent.

- Achieve second position in the motorbike market and expand consumer awareness in our target market from 35 percent to 40 percent

- Aim for an average price of USD 1,480

- Expand the number of distributors by 10 percent.

Current marketing strategy

Market segmentation

At the moment, the company segment motorbike market based on two criteria:

− High quality products: There are famous Japanese motorcycles with brand names such as Honda, Yamaha, and Suzuki

− Competitive price products: Taiwanese Sanyang Motor - SYM, Hoa Lam

Kymco and Korean Dealim motorcycles Other bikes that are produced and assembled in some Vietnamese assembly lines enterprises, and most parts are imported from China, Taiwan and Korea.

Target market

Yamaha Motor Vietnam Co., Ltd focuses on the high quality segment with the target market of male, female of the middle-upper class who are young, stylish and sporty.

Positioning

YMVN is strategically positioning itself as the leader in stylish design, superior performance, and exceptional fuel efficiency By adopting a functional approach to brand positioning, YMVN emphasizes the key features and benefits that resonate with customers, ensuring they understand the value of choosing their products.

Marketing mix

Yamaha offers a range of fashionable and sporty bikes designed for young customers seeking the latest models With a commitment to high quality and value, Yamaha ensures that its products meet the evolving needs and preferences of its clientele.

Price: price-value relationship is built to promote its brand as a unique value that is worth the price

Yamaha Motor Vietnam is committed to enhancing the value of its motorcycles through exceptional customer service, warranty, and technical support The company aims to establish a selective network of qualified retailers across Vietnam to ensure the effective delivery of products and services To streamline operations, Yamaha is implementing vertical channel integration, overseeing the entire process from suppliers of spare parts and materials to distribution channels Additionally, the marketing channel is continuously developed to strengthen Yamaha's presence throughout the Vietnamese market.

Promotion: it is mentioned in the later part.

Marketing communications

Objectives

In order to support effectively the corporate objectives and marketing objectives as well, YMVN sets the marketing communications objectives as following:

- To raise the level of aided awareness of Vietnamese target customers from 35% to 65% in the next 3 years

- To reach the target customers by positioning the current and emerging markets as a premium, valuable, stylish and sporty products.

Marketing communications strategy

YMVN employs a dual approach of push and pull strategies to effectively engage both dealers and end-users By leveraging its marketing channels and communication tactics, YMVN influences these key stakeholders simultaneously, ensuring a comprehensive impact on its target audience.

YMVN employs a push strategy that emphasizes the importance of dealers in promoting and selling Yamaha motorcycles To become a dealer, candidates must demonstrate financial capability, local prestige, sales skills, and service expertise Recognizing that dealers are closer to customers, YMVN leverages their network as a vital medium for marketing Yamaha products, integrating advertising, sales promotions, personal selling, and public relations to enhance product awareness and facilitate purchases Consequently, the push promotional strategy is a key component of YMVN's marketing mix, with dealer development and carefully planned incentives being crucial to fostering dealer contributions and ensuring the success of YMVN's business.

Ya am ma ah ha a M Mo ot to or r V Vi ie et tn na am m

To make aware of products’ existence

To push the products down through dealers toward end-user

YMVN employs a pull strategy by collaborating with dealers to execute promotional campaigns, addressing the challenges of coordination and budget constraints This partnership aims to stimulate consumer demand for goods and services through coordinated promotional programs To support this strategy, YMVN utilizes mass media advertising alongside below-the-line communications and has integrated direct marketing to effectively reach target audiences Additionally, the company is exploring innovative ways to engage audiences through the internet.

Marketing expertise

Figure 7: Marketing Department Organizational Chart

Yamaha Motor Vietnam conducts regular research programs to stay informed about real market conditions Marketing executives perform quarterly research in their designated areas, using the gathered data to refine strategies and strengthen competitive advantages.

To develop an effective marketing strategy, YMVN conducts extensive market research, including surveys to forecast demand and identify popular brands and models By analyzing this data, the Marketing and Sales Department can understand customer behavior and assess the potential of various market segments, allowing YMVN to focus its efforts on the most promising areas.

The marketing database has not been yet fully used for implementing integrated marketing in order to segment and analyze customer-buying habits Some actions are used as follow:

− Relation Database (Customer Records with Responses/Purchases or for service department)

Each year, Yamaha Motor Japan conducts a training course for marketers to enhance their skills and stay updated on the latest product and marketing information Mr Roger Yap, the branch manager in the South, emphasizes that a key strength of YMVN lies in its marketing team, which is characterized by youth, innovation, and dynamism.

Promotional mix

Select the communications options

It could be very crucial to take into account the relationships between decision stages and communication effects in order to make the right decision for communications options:

Need Arousal Category Need, Brand Awareness, Brand Attitude

Brand Awareness, Brand Attitude, Brand Purchase Intention

Brand Attitude, Brand Purchase Intention

YMVN utilizes the Integrated Marketing Communication task grid model to identify the most effective communication tools By analyzing market data, YMVN has developed a tailored model to enhance its marketing strategies.

Brand awareness and brand attitude

Brand Awareness, Brand Attitude, Brand Purchase Intention

Family members, who need the new bikes Friends who have experience and knowledge on bikes

Personal selling Promotion Print promotion Usage Brand Attitude Youngster At home Direct mail,

Yamaha's marketing strategy, as highlighted by Branch Manager Mr Roger Yap, emphasizes the importance of engaging in activities such as Caravan shows, service campaigns, and newsletters to connect with existing and potential customers Despite falling behind competitors in TV and newspaper advertising, Yamaha remains committed to these key promotional efforts to enhance brand loyalty and drive premium promotions.

YMVN selection of communications options results in the limitation of various promotional tools

YMVN is employing the promotional mixes as following to support the pull strategy:

Broadcast advertising is essential for enhancing customer awareness Our strategy will prioritize local TV advertising and daily newspapers, including publications like the Youth and Labor Additionally, we will utilize posters to further increase brand visibility and awareness.

Outdoor advertising: Billboards, bus boards are also required to build the awareness

To consider renting the attractive spaces and attracting audiences

Direct marketing: Using database to send letters to current customer to maintain the relationship as well as to potential customers, for example, sending promotional letters to mobile phone users

YMVN conducts seasonal and localized promotional campaigns aimed at specific target customers, such as promotions for the new school year and International Women's Day To enhance customer engagement, the company also offers hire purchase options and utilizes coupon discounts to attract buyers.

Exhibiting at trade shows and caravans is essential for promoting products or services to our target audience, enhancing brand image and awareness By strategically focusing on key markets rather than attempting to cover the entire market, we can effectively engage with potential customers and maximize our impact.

Sponsorship: Sponsorship opportunities to reinforce Yamaha image and enhance the positive attitudes of target customers We concentrate on sports sponsorship, arts sponsorship and education sponsorship

Public relations: Marketing public relations activities focus on Press release and sponsorship YMVN celebrates famous movie stars, students and so on

In addition, to support the push strategy, YMVN is employing the following options:

Sales promotion: Sales incentives will be given to dealers to push them stock more

Dealers who meet specific targets and are new to the program will receive advertising allowances to boost their retail sales This competitive approach among dealers aims to enhance overall sales performance, while financial support will be provided to incentivize increased inventory levels.

Advertising allowances are also used It can be made if the dealers can show that they have undertaken a promotional campaign featuring our product

Personal selling is crucial not only for nurturing customer relationships but also for meeting sales targets To maximize the effectiveness of marketing executives' trips, personal selling should be strategically combined with various methods, including advertising allowances, financial support, and sales incentives.

Control and evaluation

Evaluating individual promotional tools can be challenging, and allocating separate budgets for each tool is often unnecessary While each promotional tool has its unique strengths, they are most effective when coordinated within a specific campaign For instance, a caravan show exemplifies a comprehensive promotional strategy that combines sales promotions, advertising, service campaigns, and trial promotions to create a cohesive and targeted approach for reaching customers.

The objectives established for the marketing and marketing communications plan will be regularly evaluated, serving as the primary method for assessing the effectiveness of the campaign within the framework of an integrated marketing communications strategy.

Internal analysis

A well-aligned marketing communications plan enhances brand awareness and distinguishes Yamaha products in a competitive marketplace By fostering a positive brand image, YMVN has established strong recognition among consumers Effective marketing communication strategies have complemented other marketing efforts, contributing significantly to YMVN's overall success.

YMVN effectively defines and segments its target market, allowing for a deep understanding of customer characteristics The strong relationship between YMVN's marketers and dealers enhances this approach, as dealers play a crucial role in helping Yamaha successfully reach its target audience.

A well-defined marketing communications strategy provides a competitive edge for YMVN by aligning seamlessly with the overall marketing strategy, ensuring that both elements work in harmony without any overlap.

− Empowerment and teamwork: YMVN employs young and dynamic marketers It helps YMVN gain competitive advantage As Mr Horikoshi mentioned that

YMVN's marketing department excels due to its creative and enthusiastic staff, who are highly valued for their empowerment and teamwork The emphasis on collaboration ensures that no individual or department can operate effectively without mutual support By utilizing aggregate planning, all functional departments work together as cohesive project teams, synchronizing their tasks and responsibilities to achieve common goals.

− Customer database: YMVN has not yet fully used customer database for implementing integrated marketing in order to segment and analyze customer- buying habits

YMVN faces challenges in coordinating and executing advertising and sales promotional activities due to overlapping efforts among departments and insufficient customer awareness from isolated campaigns Additionally, the brainstorming process for promotional campaigns is hindered by varying levels of understanding and perception of the promotional mix among staff members.

YMVN's marketing communications strategy lacks a diverse promotion mix, resulting in minimal sales promotions and limited advertising reach Consequently, target audiences often overlook YMVN's advertising efforts The company frequently depends on its dealers to generate innovative ideas for both sales promotions and advertising campaigns.

− Control and evaluation system: YMVN has not applied an effective control and evaluation system It mainly bases on the sales result and staff working attitude

It has not set up the basic criteria for controlling and evaluation of promotion activities

Several solutions to expand market share of

Based on the external and internal analysis, including integrated marketing communication (IMC), organizational marketing strategy, and P.E.S.T analysis discussed in chapters 2 and 3, several solutions are proposed for YMVN to enhance its current market share.

YMVN is currently implementing the integrated marketing communications (IMC) concept in its marketing activities However, the practical application of IMC at YMVN is less complex than the theoretical framework suggests To enhance effectiveness, I believe that IMC should be comprehensively integrated throughout the organization.

YMVN has successfully integrated its promotional mix, utilizing strategies such as Caravan shows and targeted advertising campaigns This coordinated approach has significantly boosted brand awareness and improved the product image in the regions where these campaigns were executed As a result, customers in these areas have become more familiar with Yamaha's products, services, and dealer network, enhancing their overall experience and accessibility to the brand.

YMVN has effectively integrated its promotional mix with the marketing mix to meet sales targets and promotional goals However, discrepancies between marketing planning and sales objectives have necessitated adjustments to the promotional mix.

The misalignment in market demand forecasting by YMVN from 2002 to 2004 negatively impacted their marketing communications and performance, leading to a missed opportunity for market share and ineffective promotional campaigns This product supply shortage not only confused loyal customers but also opened doors for competitors To address market needs, YMVN expanded its product range between 2004 and 2006, introducing models like Nouvo, Mio, Exciter, and the latest Classico.

YMVN focuses on engaging young customers by delivering exciting and youthful messages that set Yamaha products apart from competitors By integrating marketing teams, existing customers, and dealers, YMVN fosters collaboration to develop effective media strategies that resonate with their target audience.

Intra-organization refers to the integration of all relevant internal departments, individuals, and activities that influence marketing communications within a company At YMVN, while there is an attempt to integrate these internal departments, it occurs at a low level, leading to separate objectives that result in inconsistent messaging to target customers This lack of cohesion creates conflicts, particularly as the finance and accounting departments prioritize budget reductions for marketing initiatives, often placing financial considerations above consumer needs Consequently, these internal conflicts hinder the effectiveness of YMVN's marketing communications.

Inter-organization: Dealers represent for YMVN to directly handle with customers

To effectively connect with customers, all dealers must align their messaging with YMVN's brand voice However, inconsistencies in business direction among dealers hinder YMVN's ability to present a unified front This lack of persuasive integration has led to confusion among customers, making it difficult for them to distinguish YMVN products from competitors, ultimately damaging the brand's image.

Effective information and database systems are crucial for Integrated Marketing Communication (IMC), yet many staff members at YMVN underestimate the significance of a comprehensive customer database Currently, the database is primarily used for basic tasks like mailing lists and customer service, rather than for analyzing customer behaviors and characteristics As a result, YMVN has not fully leveraged its database to identify and understand its target customers, hindering the development of effective marketing and communication strategies.

Solutions

Organizational structure

Effective organizational structures are essential for fostering cooperation between functions, as integrated messages can only be delivered by a cohesive company This requires the formation of cross-functional teams that include representatives from each department, ensuring that strategic planning is a collaborative effort across the entire enterprise Consequently, information and responsibilities are shared, highlighting the necessity for horizontal relationships within a traditionally vertical organization.

Marketing communication

In many marketing organizations, implementing an integrated marketing communications program is a top priority However, for many executives, investing in marketing communications is often viewed as a luxury that can only be justified during periods of overall business success.

Teamwork

Effective marketing integration hinges on seamless collaboration among departments, ensuring that no single team, such as advertising, operates in isolation To uphold a cohesive marketing promise, every department involved must actively participate in its development Key findings highlight strategies to align and coordinate marketing and communication initiatives for optimal results.

• Best-practice companies make extensive use of interpersonal and across- function communications designed to break down functional silos and focus managers on customers, not products and their attributes

• Best-practice organizations have integrated customers into their IMC planning and development process This helps integrate marketing and communication systems not just functions

In top-performing companies, a customer is recognized as a valuable asset across the entire organization, rather than being limited to the specific strategic business unit (SBU) or division responsible for selling particular products or services By utilizing global customer databases, these firms can unlock cross-selling and add-on opportunities, allowing various departments and divisions worldwide to collaborate and enhance customer engagement.

Financial aspect

The article highlights a common issue in marketing strategy development, where financial considerations often overshadow consumer needs and preferences It emphasizes that many managers prioritize financial metrics over understanding what consumers truly want, leading to misguided marketing objectives.

Stakeholders

to control and integrate them as a united Yamaha family Integrate outside agencies

To achieve consistent and compatible messaging, companies must invest in integration by ensuring that all team members share the same information regarding target audiences and strategic goals This alignment is crucial for effective communication both within the organization and with external stakeholders.

− Be consistent, not conflicting, in communications

− Provide training and rethink compensation

In order to achieve the above mentioned strategy with countable outcome, author would like to propose several suggestion to Government and industry in Viet Nam as follows:

- Step up the negotiation process related to motorcycle industry after becoming WTO’s member

Renovating Customs procedures is essential for streamlining and aligning with international standards and regulations This ongoing effort aims to enhance import and export regimes by eliminating unnecessary costs associated with transportation, handling, taxation, and customs clearance processes.

- Improve legal system, tighten border smuggling control that seriously effect to local market Strictly apply sanctions to unauthorized, intimated goods and protect healthy competitive environment

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− October.2006, Xe Sirius cũng giảm xuống dưới 20 triệu đồng/chiếc, www.fpt.vn

− August.2006, Xe gắn máy nhập khẩu vượt kế hoạch cả năm, Saigon Giai Phong Newspaper, www.fpt.vn

− New release, September.28, 2006, Reorganization of Motorcycle Operations and Personnel Reshuffle Promoting Manufacturing Innovation by establishing a System Supplier Structure, www.yamaha- motor.co.jp

− July 19, 2006, Yamaha Motor Cutting Costs To Raise Competitiveness, Motorcycle NewsWire

− http://www.yamaha-motor.com.vn/

− http://www.yamaha-motor.co.jp/global/ir/report/pdf/2005/2005report-q2- e.pdf

− http://www.moi.gov.vn/EN/News/Detail.asp?Sub1&id"146

− http://www.mofa.gov.vn/en/nr040807104143

1 Figure 1: Market’s sales volume forecast