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 comprises HONGLEONG Industries Berhad 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 holds 46 percent of the stock in YMVN, while CODO Mechanical Factory Vietnam owns 30 percent, with the remaining shares held by HONGLEONG Industries BERHARD Malaysia The company's head office is situated in Hanoi, Vietnam, alongside a branch office in Ho Chi Minh City YMVN has a registered capital of USD 24,250,000 and occupies a land area of 100,000 square meters, with a building area of 22,000 square meters Currently, YMVN employs 1,057 people.

Yamaha Motor Vietnam (YMVN) produces motorcycles and spare parts for the Vietnamese market, ensuring quality service for Yamaha motorcycle users Among the various models available, YMVN has recently introduced the Jupiter MX and the Exciter 135, launched in 2006 Committed to a long-term investment strategy, YMVN focuses on providing ample spare parts and services to enhance customer satisfaction and maintain brand 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 strategies and outreach.

External analysis

Demand measurement and forecasting

The Vietnamese motorbike market is significant, with a substantial global presence noted in 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, commanding 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 brands 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 annual sales increasing nearly 20% from 2005 to 2010 However, starting in 2005, the market began to shift from Chinese bikes to joint venture brands known for their reputation, quality, competitive pricing, and excellent after-sales service Consequently, manufacturers are now prioritizing product feature development, cost efficiency, and, crucially, customer relationship management.

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 leading manufacturing and exporting sector for motorbikes and spare parts in the region This strategic direction focuses on 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 environment for businessmen and investors, as the country's business policies continue to open new opportunities for growth and investment.

Vietnam's taxation policy features a complex array of tax laws that often respond ad hoc to the challenges of attracting foreign investment, rather than adhering to internationally accepted taxation principles This has led to contradictory regulations that clash with global tax systems and imprecise foundational principles The government's approach aims to utilize a single tax instrument to fulfill various economic and social goals, resulting in companies facing numerous taxes, including corporate income tax, capital gains tax, and value-added tax, while high-income individuals are subject to personal income tax To entice foreign investors, the Vietnamese government offers tax incentives such as low corporate tax rates and temporary tax exemptions, positioning Vietnam as one of Asia's most liberal countries regarding foreign investment laws.

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, positioning it as the second most populous country in Southeast Asia, according to the Asiaweek issue dated October 6, 2006.

In Vietnam, lifestyle changes have shifted dramatically since the implementation of the "Doi Moi" policy in 1986, leading to an increased standard of living As a result, urban residents are eager to purchase new motorbikes, which have become the primary mode of transportation for Vietnamese families This preference is largely due to the country's inadequate infrastructure, characterized by narrow roads and limited public transportation options Motorcycles are essential for daily activities, including commuting, running errands, and leisure outings, making them a vital aspect of Vietnamese life for both men and women.

Since Vietnam's integration into the regional economy, it has experienced significant changes in business and trade, with an average annual economic growth of approximately 8% This growth has led to improved individual incomes and a higher standard of living Additionally, Vietnam's recent accession to the WTO has sparked a new wave of investment, further enhancing its economic landscape.

The government mandates that all motorcycle manufacturers boost the localization of spare parts to support the growth of the domestic motor industry Additionally, it is essential to integrate the latest technologies in the production and design of new motorcycle models to improve competitiveness in the market.

Vietnam currently has 16,000 registered Internet subscribers, with a minimal number being private citizens The local user base remains limited, as officials initially aimed for 50,000 service contracts in the coming years Internet access is predominantly utilized by foreigners and businesses, both private and state-run Typically, only families of government officials or affluent businessmen can afford the high costs associated with Internet services, resulting in usage being largely restricted to the elite and employees of prominent companies.

Competitor Analysis

Honda Corporation dominates the motorbike market in Vietnam, holding an impressive 80% market share in the joint venture segment For over 30 years, the Honda brand has become synonymous with quality and reliability, making it the benchmark for other motorcycle brands Consumers are drawn to Honda bikes for their durability, family-friendly design, and ease of resale The brand's strong market presence ensures that spare parts are readily available for maintenance and repairs Additionally, Honda Corporation has made significant investments to enhance its offerings and maintain its leadership position in the industry.

Honda Vietnam has invested 112 million to sustain its market share in the country Recently, the company introduced the Wave Alpha, priced at VND 10,990,000 (USD 727), aiming to capture the market currently dominated by Chinese bike manufacturers.

Suzuki Corporation, a competitor of YMVN, has established its factory over several years and currently holds a 5% market share The brand primarily attracts young, sporty customers who appreciate stylish motorbikes One of Suzuki's key advantages is its competitive pricing compared to other Japanese models.

Strong competitors in the motorcycle market include renowned imported brands such as Honda, Piaggio, and Suzuki, alongside Chinese manufacturers These smaller enterprises assemble and produce motorcycles and spare parts, leveraging flexible pricing as a key advantage Additionally, the design of Chinese bikes often mimics popular Japanese models, leading to customer confusion with well-known bikes like 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 growing demand in the Vietnamese market However, these sources are now facing limitations and losing market share to joint ventures and domestic manufacturers.

Customer context

Customer awareness and perception of Yamaha products are unclear and confused, with limited knowledge among consumers Insights gathered by YMVN through surveys of two customers and dealers reveal that both groups have a similar understanding of Yamaha's marketing communications.

− 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 is even lower among regular motorbike users Customers perceive Sanyang Motor's products as low quality and low price, while Japanese brands are associated with high quality and high price Honda leads the market in customer perception, followed by Suzuki and Yamaha The accompanying figure provides a clear illustration of Yamaha's image in the minds of consumers.

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 loyalty, focusing on the profit margins from their trades Dealers play a crucial role in this buying process, significantly influencing customer decisions as they are regarded as the most reputable motorbike sellers in their respective areas Consequently, customers tend to rely heavily on the dealers' advice and recommendations regarding the quality of motorbikes.

In Vietnam, motorbikes are the primary mode of transportation, particularly among the middle-upper class, whose annual per capita income exceeds USD 4,000 In major cities like Hanoi, Haiphong, and Ho Chi Minh City, the majority of consumers rely on motorbikes for their daily commuting needs, highlighting the significant role these vehicles play in the country's transportation landscape.

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 motorcycles they choose, aiming to make a statement about their affluence Consequently, they prioritize brand reputation, model selection, and high price tags as key factors in their purchasing decisions.

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, driven by perceived risks and concerns regarding their choices This process begins with an extensive search for information, which helps shape attitudes before any commitment to a trial is made Consequently, the information search is crucial in high-involvement decision-making Various media sources, including mass media, word-of-mouth, and point-of-sale communications, are utilized Given the need for detailed information, print media proves to be particularly effective, as it allows consumers to absorb large volumes of information at their own pace.

Effective integrated marketing communications planning should consider the target audience's involvement and motivation levels, especially for high-involvement purchases like bikes, which carry inherent risks To ensure buyers feel confident in their decisions, it's crucial to emphasize the value of the product Yamaha's positioning in Vietnam aligns with the Rossiter-Percy Grid and brand attitude, highlighting the importance of understanding consumer behavior in driving successful marketing strategies.

− 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, communication strategies must effectively address this authenticity to foster meaningful connections.

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 in buyers often stems from their lack of experience with a product's performance and the purchasing decision process To mitigate this risk, providing additional information via mass media, word-of-mouth, and personal selling can be beneficial Additionally, fostering brand loyalty can play a crucial role in alleviating concerns 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 a growing willingness to take out loans for consumer goods, the overall standard of living is on the rise, reflecting a shift towards greater financial confidence among consumers.

- 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

Yamaha aims to enhance its market share in Vietnam by establishing premium branded motorcycles like Sirius, Jupiter, and Nouvo as valuable and sporty options The company plans to strengthen and expand its dealer network to effectively promote Yamaha products and services, thereby increasing the availability of Yamaha motorcycles to end-users Ultimately, these strategies are designed to boost profitability in the Vietnamese market by driving market share growth.

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 aimed for total sales valued at USD 2,778,884,940, necessitating a unit sales volume of 1,877,625 to capture 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 style, performance, and fuel efficiency By focusing on functional attributes, the brand emphasizes the key features and benefits that resonate with customers, ensuring a strong market presence.

Marketing mix

Yamaha offers a range of fashionable and sporty bikes designed specifically for young customers seeking the latest models Committed to high quality and value, Yamaha ensures that its products meet the essential requirements to satisfy the needs 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 by offering exceptional customer service, warranty, and technical support The company aims to establish a selective network of qualified retailers across Vietnam to effectively deliver products and services to customers To ensure operational efficiency, Yamaha is implementing vertical channel integration, overseeing the entire process from spare parts and materials suppliers to distribution channels Furthermore, the marketing channel is being strengthened and expanded to boost Yamaha Motor Vietnam's presence in the national 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 efforts, YMVN influences these key stakeholders, ensuring a comprehensive impact on the market.

YMVN employs a push strategy that emphasizes promoting its motorcycles through a well-established dealer network To become a YMVN dealer, candidates must demonstrate financial stability, local prestige, and strong sales and service skills Recognizing that dealers are closer to customers, YMVN leverages this network as a vital promotional channel, akin to a media platform that encompasses advertising, sales promotions, personal selling, and public relations This approach is crucial for enhancing product awareness and facilitating customer purchases Consequently, dealer development is a key focus in YMVN's action plan, with carefully planned incentives designed to motivate and retain dealers, ensuring their ongoing contribution to the company's success.

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 collaborates with dealers to implement promotional campaigns, addressing their challenges of coordination and budget constraints By coordinating promotional programs, YMVN aims to stimulate customer demand for goods and services The company utilizes mass media advertising alongside below-the-line communications to effectively execute its pull strategy Additionally, direct marketing techniques are employed to engage audiences, while the potential of the internet is being explored to reach consumers in innovative ways.

Marketing expertise

Figure 7: Marketing Department Organizational Chart

Yamaha Motor Vietnam conducts quarterly market research to gather current information, enabling its marketing executives to analyze trends in their respective areas This data-driven approach allows YMVN to refine its strategies and strengthen its competitive advantages in the marketplace.

To develop an effective marketing strategy, YMVN must conduct thorough market research, including surveys to anticipate market demand and identify popular brands and models By analyzing this data, the Marketing and Sales Department can gain insights into customer behavior and the potential of various market segments, allowing them to determine which segments are most suitable for targeted efforts.

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)

Every year, marketers participate in a training course organized by Yamaha Motor Japan, where they receive updates on the latest product information and marketing strategies According to Mr Roger Yap, the branch manager in the South, "one of the strong points of YMVN is the marketing force; they are young, innovative, and dynamic."

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 communication 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 currently focuses on engaging customers through events like the Caravan show and service campaigns, along with newsletters aimed at existing and potential clients However, according to Branch Manager Mr Roger Yap, the company is lagging behind competitors in television and newspaper advertising These key activities are essential for building customer loyalty and promoting premium offerings.

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 plays a crucial role in enhancing customer awareness Our strategy will concentrate on local TV commercials 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 targeted seasonal and local promotional campaigns aimed at specific customer segments, such as back-to-school promotions and Women's Day events To enhance customer engagement, the company also offers hire purchase options and utilizes coupon discounts to incentivize purchases.

Exhibiting at trade shows and caravans is essential for showcasing 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 at these events.

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 performance targets and are new to the market will receive advertising allowances to boost their sales efforts This competitive approach among dealers aims to enhance retail sales, while financial support will 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 essential for building strong relationships while also meeting sales targets Marketing executives should utilize their trips effectively, ensuring that personal selling is complemented by other strategies such as advertising allowances, financial support, and sales incentives This integrated approach enhances overall marketing efforts and drives better results.

Control and evaluation

Evaluating each promotional tool in isolation can be challenging, and allocating a separate budget for each one is often impractical While each tool has its unique strengths, they are most effective when coordinated within a specific promotional campaign For instance, a caravan show exemplifies how various promotional elements—such as sales promotions, advertising, service campaigns, and trial promotions—can work together to create a cohesive and impactful strategy aimed at engaging target 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 is essential for enhancing brand awareness and differentiating Yamaha products in a competitive marketplace By establishing a strong market presence, YMVN has successfully created favorable brand recognition Effective marketing communication not only supports the overall marketing mix but also contributes significantly to the success of YMVN.

YMVN effectively defines and segments its target market, allowing for a deep understanding of customer characteristics The strong relationships between YMVN's marketers and dealers play a crucial role in this success, as dealers facilitate Yamaha's connection to its target audience, enhancing overall market reach.

A well-defined marketing communications strategy provides a significant advantage for YMVN, ensuring alignment with the overall marketing strategy to avoid 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 Collaboration is essential at YMVN, as no individual or department can operate effectively without mutual support All functional departments work together as project teams, aligning their tasks and responsibilities to achieve cohesive results.

− 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 initiatives 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, the target audience often overlooks YMVN's advertisements The company frequently depends on its dealers to generate innovative ideas for both sales promotions and advertising efforts.

− 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 analyses, including integrated marketing communication (IMC) and P.E.S.T analysis discussed in chapters 2 and 3, several solutions are proposed for YMVN to enhance its market share effectively.

YMVN is actively implementing the integrated marketing communications (IMC) concept in its marketing efforts 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 thoroughly integrated within the organization, ensuring a more cohesive approach to marketing communications.

YMVN has successfully integrated its promotional mix, utilizing strategies such as Caravan shows and targeted advertising campaigns This coordination has significantly boosted brand awareness and improved the product image in the regions where these initiatives were implemented 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 strategically integrated its promotional mix with the marketing mix to effectively meet sales targets and promotional objectives However, discrepancies between marketing planning and sales goals have necessitated adjustments to the promotional mix.

The failure to accurately forecast market demand from 2002 to 2004 significantly impacted YMVN's marketing communications, resulting in a shortage of product supply and a missed opportunity for market share This miscalculation led to wasted promotional campaigns and necessitated time-consuming adjustments to their strategies Additionally, the lack of product availability created confusion among loyal customers and provided opportunities for competitors In response, from 2004 to 2006, YMVN introduced a diverse range of products, including Nouvo, Mio, Exciter, and the recent Classico, to better meet market demands.

YMVN focuses on engaging young customers through vibrant and dynamic messaging that sets its Yamaha products apart from competitors By fostering collaboration among marketing teams, current customers, and dealers, YMVN effectively develops innovative media strategies that resonate with its target audience and enhance message delivery.

Intra-organization integration involves aligning all relevant internal departments and activities that influence marketing communications At YMVN, while there is some level of integration among departments, the objectives remain fragmented, leading to inconsistent messaging directed at target customers This disunity causes conflicts, particularly as the finance and accounting departments prioritize budget reductions for marketing initiatives, placing financial concerns above consumer needs Consequently, this tension hampers 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 voice However, inconsistencies in business direction among dealers hinder this alignment YMVN has struggled to persuade and integrate its dealers to consistently represent the brand, leading to mixed messages that confuse customers This lack of cohesion not only obscures the distinction between YMVN products and those of competitors but also damages the overall product image.

Effective information and database systems are crucial for Integrated Marketing Communication (IMC), yet many staff members underestimate the significance of a well-managed customer database Currently, the YMVN Database is underutilized, serving only basic functions like mailing lists and customer service, rather than analyzing customer behaviors and characteristics As a result, YMVN has not leveraged its database effectively to identify and understand its target customers, hindering the development of impactful marketing and communication strategies.

Solutions

Organizational structure

Effective organizational structures are essential for fostering cooperation among functions, as integrated messages can only be conveyed by a cohesive company This involves creating cross-functional teams that represent every department, transforming strategic planning into a collaborative, enterprise-wide initiative Consequently, information and responsibilities are shared, highlighting the necessity for horizontal relationships within a traditionally vertical organization.

Marketing communication

In numerous marketing organizations, establishing 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 when the business is thriving.

Teamwork

Effective marketing integration necessitates seamless collaboration among departments, ensuring that no team, including advertising, operates in isolation To uphold a cohesive marketing promise, all relevant departments must actively participate in its development Specific strategies can enhance the alignment and coordination of marketing and communication programs, fostering a unified approach to branding and messaging.

• 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 viewed as a valuable asset across the entire organization rather than being confined to the specific strategic business unit (SBU) or division responsible for selling particular products or services By leveraging global customer databases, these firms can unlock cross-selling and add-on opportunities, enhancing collaboration among various departments and divisions worldwide.

Financial aspect

The article highlights the common misstep in marketing strategy development, where financial considerations overshadow consumer needs It emphasizes that many managers prioritize financial metrics over understanding and addressing consumer wants, which can lead to ineffective 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, ensuring that all team members share the same information about target audiences and strategic goals This alignment is crucial for fostering collaboration and 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 aims to streamline and align them with international standards and regulations This initiative focuses on enhancing import and export processes to reduce unnecessary costs associated with transportation, handling, taxation, and customs clearance.

- 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, Scooter - mốt của năm 2001, Saigon Tiep Thi Newspaper, www.fpt.vn

− 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