nternship report selling strategy for yamaha janus motorbike in quang tuyet limited company

MARKETING MANAGEMENT PROFESSIONAL SALES AND MARKETINGCOURSE: 2015 – 2018 INTERNSHIP REPORT Selling strategy for Yamaha Janus Motorbike in Quang Tuyet Limited Company Internship period fr

MARKETING MANAGEMENT PROFESSIONAL SALES AND MARKETING

COURSE: 2015 – 2018

INTERNSHIP REPORT

Selling strategy for Yamaha Janus Motorbike in Quang Tuyet

Limited Company

Internship period from March 1st, 2018 to May 30th, 2018

Student: Tran Thi Tham Class: Marketing 9

H A N

After taking internship at Yamaha Town Quang Tuyet as well as the education atFaculty of International Training of Vietnam University of Commerce, I am so glad thatthe internship report has finally completed

Despite the shortage of specialized knowledge, experience, and mistakesoccurred in the report are unavoidable, I am looking forward to receiving professionalcomments to improve my knowledge and experience I am aware of being worked inprofessional environment, approached many staffs and customers are such a wonderfulduration for me to finish internship report and get acquainted with real working forfuture occupation

I would like to give my appreciation to tutors who guide me during my internship.First of all, I would like to sincerely thank the teachers of University of Commerceand University of Lyon 3 who providing me basic knowledge and skills through the timestudying at University Especially, I am so grateful to Mr Nguyen Hoang, Mr La Tien Dungand Prof Corinne Montoya for their guides and advise in helping me to complete thereport

Secondly, I would like to express my thankfulness to Mr HOANG Van Project Director for giving me documents, ideas and guides to write and finish myinternship report

Quang-Finally, I wish all the teachers of University of Commerce and University of Lyon 3peace and happiness in everything And I hope Yamaha Town Quang Tuyet will always besuccessful and fortunate

TABLE OF CONTENT

LIST OF TABLE, FIGURE AND CHART

Along with economic growth, the average income of people has increased, leading

to their higher consumer demand, including motorcycles products Currently, in thecontext that every Vietnamese family has at least one motorbike, the demand of people

is to own motorbikes which have beautiful designs, high quality and trendy or havefeatured characteristics as fuel saving and environmental protection

According to statistics of Vietnam Association of Motorcycle Manufacturers

(VAMM), total sales of the market in 2017 reached nearly 3.3 million vehicles Compared

with recent years, the motorcycle market in Vietnam is still steady growth with no signs

of deterioration even though a growing number of brand new vehicles are joining.Recognizing that Vietnam is a potential market, the famous motorbike brands arelaunching products with their own features to attract customers and there is definitelyYamaha's presence in the deal

During my internship period, I got contact and was admitted to work as an intern

in Sales Department of Yamaha Town Quang Tuyet The objective of the project is tosupport the company in accelerating product sales Yamaha Janus based on the targetcompletion of selling 150 to 180 products until the end of May 2018, creating goodimage for the product, increasing awareness of brand There is another look at Yamaha'sproduct, not a "fuel wasted" product as people say

I hope that I could offer solutions to help this company overcome initialdifficulties and develop their business activities in the future

I. OVERVIEW OF THE COMPANY AND PROJECT

I.1. Overview of Yamaha Town Quang Tuyet

Name Quang Tuyet commercial investment and services Limited

liability company ( Quang Tuyet Co., Ltd)

1.2 History and development

Yamaha Town Quang Tuyet is an authorized dealer of Yamaha Motor Vietnam Thecompany was established under the business registration certificate No 1802000695dated 26/09/2011 by the business registration division owned ‘Bac Ninh Planning andInvestment Department The initial capital of the company is 6 billion VND The companyofficially came into operation on 01/10/2011 Until now the company has beenoperating for nearly 7 years and the business has achieved many successes In 2016, thecompany decided to expand and upgrade the showroom to meet the new standards ofYamaha Motor Vietnam and serve a larger number of customers

Sales Department Accounting DepartmentTechnical Department DepartmentService Department

1.3 Organization structure of Yamaha Town Quang Tuyet

Figure 1: Organization structure

1.4. Business scope

The company operates in the following fields:

• Specializes in distributing exclusive Yamaha motorcycles;

• Warranty, maintenance and repair motorcycles;

• Wholesale and retail accessories, genuine stamps of Yamaha Motor

1.5 Indicators of Financial Statements

Table 1: Income Statement of Yamaha Town Quang Tuyet (2015-2017)

companies often choose PEST analysis method according to the 4 factors: Politics (P),Economics (E), Social culture (S), and Technology Environment (T)

• Economic environment

2017 marks a record of economic growth, attracting more and more foreign

investment It is the first time after many years, Vietnam achieved and exceeded all 13 indicators of socio-economic targets of the year, rate of economic growth reached 6.81% exceeding the target of 6.7% proposed by the National Assembly Clearly, the growth of economy and the increase in household spending will promote the consumption of goods, including motorcycles

(Source: General Statistics Office of Vietnam)

Gross regional domestic product (GRDP) of Bac Ninh province in 2017 accounts for3.11% of GDP in the whole country ranked fourth in 63 provinces; city; rate of GRDPgrowth reached 18.6% (target set up 9.0% - 9.2%) Total retail sales of consumer goodsand services were estimated at 49 trillion VND, increased 15.3 percent compared to

2016 In there, retail sales reached 33 trillion VND, increased 15.2 percent The scale ofthe service sector continues to expand and increase compared to 2016 The economicsituation in province also shows growth in motorcycles business

• Legal, Institutional legal environment

Due to the environmental pollution and the risk of traffic accidents caused by oldmotorcycles, the Socialist Republic of Vietnam in 2017 issued many environmentalprotection laws, including the emissions management means of transport in general andmotorcycles in particular Specifically:

• Phase 1 - From 2017 to 30/06/2018: the system of legal documents and standards formotorcycles will be completed

• Phase 2 - From 1/7/2018 to 31/12/2019, Euro 3 emission standards for two-wheeled

motorcycles will be tested, applying the Euro 4 emissions standard for cars.

At the same time, motorcycles that fail to meet the emission standards will bewithdrawn; resolutely refuse motorcycles which are not eligible to participate in trafficwith emission levels exceeding the permitted levels without remedy

The government policies are adjusted to support the use of green and cleantransport, contributing to reducing environmental pollution and protecting people'shealth, attracting investment in trade and tourism

• Socio-cultural environment

In 2016, statistics have recorded more than 45 million all kinds of motorcycles arerunning all the way Vietnam 85% of Vietnam's population is using motorcycles as ameans of transport as well as for daily living Vietnamese people like to go by means ofmotorbikes because of their compact form and the ability to move quickly, save time andfit in many corners of the streets in Vietnam

Per-capita income in 2017 in Bac Ninh was 115,000,000 VND / person / year; 2.3 times higher than the national average, which affected consumption decisions, including purchase and sale of motorbikes

In addition, the average height of the Vietnamese people is short so the motorcycle manufacturers for the Vietnamese market should pay attention to the size and weight of the motorbikes

(Source: http://cafebiz.vn/ 20170215124624403.chn)

• Technological environment

Nowadays, as science and technology rapidly grows, machines and equipment havealso been improved to meet the needs of people These scientific and technologicalachievements are also applied in the production of vehicles to achieve high productivity,reduce costs, save fuel and add utilities for motorcycles However, thriving science andtechnology has promoted many other means of transportation such as cars, buses, high-speed trains This is also a big challenge for motorbike manufacturers and dealers

Besides, the natural environment is a prime concern of nations to protect andpreserve the environment, avoiding pollution that affects human health Therefore, thetechnology of motorcycles production is pursuing the trend of increasing fuel efficiency,reducing emissions to the environment

1.7. Micro- Environment

1.7.1. Customer

Current customers are not only difficult to please but their needs also becomemore diverse Their different buying behaviors come from the difference in thecharacteristics of the consumer (income, gender, age, etc.) or their attitudes towardsproducts (preferences, habits consumer consumption, etc.)

1.7.2. Supplier

The main supplier is Yamaha Motor Vietnam Yamaha's products are beautifullydesigned, fashionable and luxurious motorbikes, the models fit the needs of customers,strong motors, smooth running, maintenance service, good warranty Prices of Yamahaproducts are usually aimed at the midrange segment

1.7.3. Competitor

Yamaha Town Quang Tuyet has been facing many competitors such as the agents ofmotorbikes in Bac Ninh province or other retail stores

Table 2: Competitors analysis

Competito

Honda Persistence engine, long-life product, low

fuel consumption, easy to replace damaged

Piaggio Piaggio is a world famous brand for

quality products and fashion design

Piaggio are premium motorcycles, itsprice is much higher than that of othermotorbike manufacturers

- Piaggio consumes a lot of fuel

- High pricing policy

- There are not manyimprovements in productfeatures

SYM - Beautiful design, low price;

- The target customer is the young andmiddle-income people

- The engine is not effective

- Many accessories of theproduct are difficult to replace

so maintenance costs are high

Table 3: List of some dealers of motorbike brand-name in Bac Ninh Province

ANH HÀO 1 Ph M i, Đ ng Nguyênố ớ ồ

ANH HÀO 2 Ph M i, Đ ng Nguyênố ớ ồ

HEAD Cao S nơ 48 Ph M i, Phố ớ ường Đ ng Nguyênồ

HEAD Vi t Long 1ệ 15A Nguy n Văn C , Tp B c Ninhễ ừ ắ

Piaggio Cty TNHH Trung Thành 10 Nguy n Đăng Đ o, Ti n An, B c Ninhễ ạ ề ắ

(Source: Internet research)

1.8. SWOT Analysis

SWOT MATRIX

- The demands for motorbikes are high because of young population and the need to replace old vehicles

- Economic growth, income of the people increased

- Development of Science and Technology

- There are many competitors in the region

- Trends in using alternative products (cars, bus)

- Customer service, maintenance, warranty

is excellent

- Strong financial capacity

- Employees with high level, dynamic,

enthusiastic

- Advanced ManagementEffectiveness

1

- Select the best potential market for product development

- Stimulate purchasing throughthe company's reputation, highproduct quality and good customer service

- Focusing on the development

of motorcycles suitable for young people, dynamic, modern and trendy

Solution to maintain price, increase quality, after-sales

Solution to organize large events to create diffusion to the market

Weakness

(W)

- Ineffective marketingtrends, limited in thecompany

- Cost of repairing andreplacing accessories ishigh

- Don’t satisfy the

- Solutions to build a effective, modern marketing system, which is suitable for each customer

- Additional solutions and training of market staff

- Cost-balanced solution

- Increased brand awareness for customers

- Solution to develop more distribution system through third party

demand of vehicles for

the ages

- After-sales solution, warranty in competitionwith competitors

2.1 Current status of marketing mix activities for Yamaha Janus

Scooter in Yamaha Town Quang Tuyet

a. Product Policy

Yamaha Janus Scooter which Quang Tuyet Company is distributing that is theperfect combination of European design with outstanding features to ensure customersatisfaction

• Focus on core features: Unlike other types of motorcycles sold in the market, the

Yamaha Janus has a great advantage with the Blue Core engine, Stop and Start Systemtemporary In particular, Janus is the first midrange scooter is applied Smart-key byYamaha - modern technology is only used for cars It is a unique feature of this productnone of similar motorcycle on the market of Vietnam can supply

 The weight of Yamaha Janus is very light, only 97kg;

 Electronic Fuel Injection (FI);

 The colors are diverse and suitable for consumers' preferences;

 The warranty period is up to 3 years

b. Price Policy

In addition to ensuring the quality of products, the price is also a very important toolthat the company has used to create competitive advantage for themselves Yamaha Janus is aproduct in medium price with good quality The product is priced at 33.5 million VND,this is the price that is suitable for Vietnamese people who looking for motorcycleproducts

Yamaha Town Quang Tuyet is now offered a good price from the brand andmanufacturer but not really effective and create the mutation and price competitioncompared with competitors in the market Because Yamaha Town Quang Tuyet has notutilized the maximum cost of doing business so the company needs to carefully calculate,rearrange business apparatus to take advantage of the cost

c. Distribution Policy

Showroom of Yamaha Town Quang TuyetDirect Sales at fair trade, motorcycles exhibitions and etc.Online selling

Yamaha Town Quang Tuyet

There are two common methods of distribution:

- The direct distribution method is the distribution of goods directly from the producer

to the consumer without through the intermediary

- The method of indirect distribution opposite to the above method is that enterprisesuse the intermediary system to distribute goods to consumers

The role of distribution channels is very important Identifying appropriate and suitabledistributors will help to maintain expend the market

Figure 2: Distribution channels of Yamaha Town Quang Tuyet

At present, the distribution channel of Yama Town Quang Tuyet is very limited

It just uses direct distribution but yet apply the indirect distribution to promote theconsumption of goods

Furthermore, the company just knew about the form of online selling that they donot have much experience as well as not reach many customers through social networksleading to not achieve high efficiency

Yamaha Town Quang Tuyet needs to build a suitable and wide sales channel withdirect selling and online selling systems to reach the most consumers, minimize the distancebetween the company and the customer

d. Advertising and promoting policy

Modern marketing not only involves the production of high quality products, low pricesbut also the ability to reach customers and understand the product information, help themunderstand the product that the company provides, from which to give consumers the rightlook and trust the product, easy to decide whether to buy the product or not

The goal of Advertising is to send messages to attract the attention of consumers,

to the mind and then promote them to buy products

Yamaha Town Quang Tuyet now only uses promotional tools to inform to customerchecking and replacing oil free, offer gifts, discount…

2.2. Searching market and the need of customers

Searching market currently

When participating in the project, I found many documents related to YamahaJanus To catch up the objective of the project, it was essential for me to find out thefactors to promote sales of the products, especially research and learn about the market

of Yamaha Janus

• Motorbike market in Vietnam

Figure 3: Sales of Motorbike Market in Vietnam ( Unit: Million Vehicles)

(Source : http://ndh.vn/infographic.news )

According to statistics of Vietnam Association of Motorcycle Manufacturers

(VAMM), total sales of the market in 2017 reached nearly 3.3 million vehicles, increased

by 4.8% compared to 2016 Compared with recent years, the motorcycle market inVietnam is still steady growth with no signs of deterioration even though a growingnumber of brand new vehicles are joining

Only of the manufacturers with foreign direct investment (FDI) in 2017, Hondaaccounts for 70% market share, Yamaha accounts for 25% of market share; the rest wasdivided for Suzuki, SYM and Piaggio

At present, the scooter segmentation is continuing to a "big gold mine" for manycompanies when it accounted for 45% of total motorbike sales in the market Realizingthat potential, Yamaha representatives said " the company will be concentrated ondeveloping the scooter segmentation in 2018" Yamaha also has a huge of advantages whenthe products of the company have applied blue core engines and new technologies such as theStop and Start System, Smart locking system, etc It boosts the scooters sales of Yamaha upquickly

2.2.2 Searching the needs of customers

The purpose of this section is to examine and assess the needs of customers whohad demands for Yamaha Janus Products, and to and found out why the number of productconsumption was not high In this section, we selected respondents as those who wereVietnamese citizen at the age of 18 years or older and knowing how to operate a motorbike.Survey areas are residential areas within a radius of 10 km around the Quang Tuyet Company.Surveyed areas are mainly located in Thuan Thanh district, some parts of Tien Du District,Gia Binh District and Luong Tai District which are near Thuan Thanh district.

• Mission implementation

This step consists of six tasks: designing questionnaires; making a list of allrespondents; conducting both indirect and direct survey; analyzing feedbacks andresults obtained; finding out real needs of customers The questions are designed aroundthe demographic characteristics of customers and customer’s demands for Yamaha JanusScooter It is crucial for us to understand the customers to be able to know which factorswill decide their choice to by this product The questions were designed long enough toavoid any incompletion of questions Besides, we also arranged the order of questions ofincreasing difficulty level In order to increase attention to the survey, the respondents

were received one ticket to participate in the event " Bac Ninh Trade Fair 2018" held

on March 23, 2018 This event was organized to exhibition , consult and take part in testdrive for free at Bac Ninh Province

After completing the questionnaire, I met Mr Quang to listen to comments, finalize and ask for approval of conducting the survey When having the survey results, I input the database into excel file and conducted database processing Many databases were demonstrated by tables, graphs to best convey the information

 Results achieved

After the survey, the company got 180 results, filtered and selected 150 qualifiedresults

Chart 1: Gender (Question with one answer)

Chart 2: Age (Question with one answer)

Through these results it can be said that customers have the need to find andpurchase scooters mainly youngth/ middle-aged people The age of the consumer ismostly from 20- 35 years old with 54%, followed by 35-45 years with 42% 9% and 11%

respectively belong to customers under 20 years old and over 45 years old Buyers areusually students or people have average wage and have knowledge of the product beforebuying.

When being asked about the purchasing demand of motorbike in the coming time, therate of people who certainly buy is 25.34%, the rate of people who will buy is 38.26%, which

is higher the rate of people not buying (36.4%) The number of people who like the YamahaJanus is 71 people This group was ready to buy the new motorbike with the average price of34.5 million VND This number showed a great potentiality in the business of high-levelmotorbike at the local area

Chart 3: Customers’ assessments about the advantages automatic motorbikes

Chart 4: Which type of media do you get to know the product? (Question with one

answer)

As indicated by Chart 5, 27% of customers choose and compare products at the point ofsale, 40% of customers will listen to the advice of their acquaintances, internet methodsaccounted for 19%, newspapers 4%, TV / Radio 10% Currently, Yamaha Town Quang Tuyetusually focus on banner, fair booth, clubs, less focus on methods of advertising on theinternet The result shows that the customers choose motorbikes at the point of sale / booth27%, the rate is quite low for the main method of the company The rate of 40% of

"Recommended by acquaintance" is very high This indicates that factors such as the quality

of customer service, aftermarket, incentive, promotion will also directly affect theintroduction of products for the acquaintance “Internet" accounts for 19%, it can be seenthat the number of customers referring to motorbikes products over the internet is notsmall Meanwhile, Yamaha Town Quang Tuyet has not focus on selling online, marketingsystem is poor

Thus, the company should concentrate on implementing appropriate advertisingstrategies through the internet (information clear, easy to understand, online consultants).Beside, improved customer care policy, offering many incentive programs, developingdistribution channel with third party Taking the strength of the quality products, suitableprice and new techlonogy such as Janus to spearhead communications

2.3. Introducing about my internship in Sales Department

The mission of the sales department:

• Proactively make plans for goods consumption, implement business plans such marketing,promotion, sales under the plan of the Company, etc

• Manage and monitor the importing & exporting process of goods and the displaying activities

of products in the showroom;

• The collection of information on new product samples, customer feedback, customercare services

• Be responsible for advising strategies for Board of Directors to make specific plans for business activities