Leading motorcycle manufacturer and distributor in United Kingdom. Largest motorcycle producer and distributor in United Kingdom, with volume share of 16.5% in 2010. The company offers motorcycles, outboard motors, ATVs, personal watercraft, snowmobiles, boats, outdoor power equipment and race kart engines in Europe and United Kingdom. In 2010, Europe contributed 10.1% (2006: 14.7%) of group revenues. Yamaha Motor Corp is publicly traded on Tokyo Stock Exchange with market capitalization of US$5 billion (September 2011). In 2011, Yamaha Motor Co is stipulated to register net revenues of US$17.6 billion with operating profit of US$0.89 billion. The European subsidiary was incepted in 1968 as "Yamaha Motor Europe".
United Kingdom motorcycle market to stabilize in 2011
United Kingdom motorcycle volume sales stood at 0.092 million, with year-on-year decline of 17% in 2009-2010. The segment is stipulated to witness low growth of 0.5% annually reaching volume sales of 0.094 million in 2014. UK market witnessed slight decline in value sales to US$781 million (-0.2%) in 2010.
Globally, Asia-Pacific is the dominant motorcycle market accounting for 45% of total value sales (2010).
Europe contributed 20% of total global sales. Yamaha is the market leader controlling market share of 16.5% in United Kingdom. Four biggest motorcycle manufacturer control approximately 49.3% of market share in 2009-2010. Honda is the closest competitor with volume share of 14.1% (2010). Non motorcycle brand expansion and IT integration to improve customer relationship.
In April 2010, Yamaha Motor Corp launched its flagship moped brand "BW 125 cc" in United Kingdom. Mopeds accounted for 14.7% of total UK motorcycle marketspace in 2010. BW 125 cc brand offers lower emission enhancing green branding across Europe and United Kingdom on medium-term basis. On the other hand, the company signed a B2C business analytics and intelligence solution agreement with IBM in March 2011. Yamaha Motor Corp is focusing on optimization of product evaluation process, customer-focused product development along with identification of purchasing trends to improve operating margins and sustainability in diverse European marketspace.
Can Yamaha improve brand equity across Eastern and Central European markets on long-term basis?
Yamaha Motor Corp is horizontally and vertically expanding its non-core "power sport portfolio (watercraft, snowmobiles) along with moped brand portfolio across Europe to reduce dependency on home market. Japan is the biggest standalone marketspace for Yamaha Motor Corp contributing 31.6% of total revenues in 2010. The economic downturn and reduction in B2C spending and household disposable income is negatively impacting European and UK growth prospects for the enterprise on short-term basis.
Thus it is vital to understand whether moped and ATV focused growth strategy will yield long-term sustainability in United Kingdom?
[...] high customer loyalty and regional dealership penetration). The company might face steep challenges to secure long-term dealership network in prime cities. Although, Yamaha has stringent consumer preference due diligence and sentiment analysis for shifting focus towards sporty and low fuel efficiency centric new product developments. Negative shift of consumer preference towards high fuel efficiencies and lower sporty body styles might hamper long-term sustainability. Peer Benchmarking & Future Outlook Honda, Triumph, BMW, Ducato. KTM and Harley are the closest competitors in United States, United Kingdom and other European/Asian markets. [...]
[...] Ducati controls high single digit share of in December 2013. Risks, challenges and Limitations Yamaha Motor Co (including the parent corporation Yamaha Corporation) faces steep macro and micro risks due to its operations across 45 countries worldwide. The core risks are as follows (Annual Report, 2014): ➢ Low employee retention and higher labour disputes will hamper competitive advantage. Lower retention rates of key motorcycle, powerboat engineers and designers will hamper sustainability. ➢ Lack of optimal cost centric integration of IT infrastructure will hamper business continuity on medium term basis. [...]
[...] It is essential to understand Yamaha's marketing strategies and positioning to enhance reliability and validity of research note. ➢ Product: Asian emerging markets based motorcycle and mopeds new launches i.e. Indonesia, India and Thailand along with balanced product diversification into core markets i.e. North America is the primary brand differentiation strategy of Yamaha Motor Co. In June 2014, it launched ROV Viking VI in North America marketspace as compared quarterly new products in emerging markets. ➢ Promotional: In India, Yamaha Motor Co has strong dependency on television based promotional and advertising campaigns. [...]
[...] ➢ Place: The company is slowly reducing dependency on its home marketspace. In 2014, Europe accounted for (2013: 16.5 of total group revenues for Yamaha Corporation. Further, North America also enhanced its revenue contributing to from 15% in December 2013. Thus, overall Yamaha is aggressively focusing on new Asian markets along with aggressive investment into research & development to vertically diversify its brand portfolio. Although, it has retained television as its primary promotional and advertising platform, it will slowly move towards digital platforms such as social media, online paid search etc to enhance regional coverage in regional and local emerging markets. [...]
[...] Industry Overview Yamaha is highly vertically and horizontally diversified with strong presence in musical instruments, powerboat and motorcycle segments across 45 countries worldwide. Although, musical instrument is the core addressable market for Yamaha Corporation in United Kingdom, United States and other international markets i.e. Europe, we will focus on motorcycle and powerboat segments to improve reliability and validity of the research note. Source: http://www.mcia.co.uk/Uploads/Statistics/Press-Statistics- 201407.pdf United Kingdom new registration increased to 63,880; with year-on-year growth of in July 2014. Mopeds and motorcycles is the biggest segment; accounting for (July 2013: 69.7 of total new registrations (July 2014). [...]
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