Marketing Management - Group Paper project

BRAND POSITIONING & BRAND EQUITY

CASE STUDY OF YAMAHA INDONESIA: POSITIONING AND
LAUNCHING AUTOMATIC MOTORCYCLES IN INDONESIA

By :
Eric Ivan
Riany Amelia
Yuli Widianingsih
Wira Surya Jaya

Program Studi S2
Magister Manajemen Eksekutif Muda
Batch 18 B
Sekolah Tinggi Manajemen PPM
Jakarta

April 2018
 TABLE OF CONTENT

Table of content ............................................................................................................. 1

I. Background ................................................................................................................. 2
II. Theories and the analysis with the cases .................................................................... 2
2.1 Brand Positioning ......................................................................................... 2
2.1.1 Competitive Frame of Reference .................................................... 2
2.1.2 Point of Difference & Point of Parity ............................................... 3
2.1.3 Designing Brand Mantra (Essence) ............................................... 4
2.2 Defining Brand Equity .................................................................................... 6
2.2.1 Brand Equity Models................................................................................... 6
2.3 Building Brand Equity .................................................................................... 6
2.4 Measuring Brand Equity ................................................................................ 7
2.5 Managing Brand Equity ................................................................................. 7
2.2.1 Brand Reinforcement ...................................................................... 7
2.2.2 Brand Revitalization ........................................................................ 8
2.6 Devising a Branding Strategies...................................................................... 8
2.3.1 Branding Decisions ......................................................................... 9
2.3.2 Brand Portfolios .............................................................................. 9
2.7 Customer Equity ............................................................................................ 9
III. Conclusion & Recommendation ................................................................................. 10
3.1 Conclusion ..................................................................................................... 10
3.2 Recommendation........................................................................................... 10

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I. Background

In year 2002, Yamaha had launch Nouvo as the first automatic bike in the Indonesian
market but that initial launch has generated disappointing sales. In Mid 2003, Yamaha planned
the position and launching of Nouvo and Mio automatic motorcycle.
The campaign provided valuable insight and revealed new opportunities. The campaign failed to
address male consumers’ concern about automatic motorcycle. Based on the market research
the data show that consumers were aware of Nuovo but had reservation about design,
performance and the image.

The challenge that Yamaha must face when launch Nouvo is they should talk as to launch new
product and should create new product strategy since Indonesian people feel un familiar with
the product and still focus on manual version of motorcycle. The motorcycle that will be launch
is characterized as 4 stroke moped with 115cc engine and automatic transition.
From the research, Yamaha adopted new strategy, the positioning of will be changed into
“tough, powerful and practical bike for men” and Mio will be launched and positioned as “Trendy
and fun bike for female”.

II. Theories and the analysis with the cases

2.1 Brand Positioning

Understand Positioning and Value Proposition

Positioning is the act of a designing company’s offering image to occupy a distinctive place in
the mind of target market. The goal of positioning is to discover the brand in the minds of
consumers to maximize the potential benefits to the firm.

A Good brand positioning helps guide marketing strategy by clarify brand essence, identify the
goal and it helps consumer to achieve and showing how is does so in a unique way.
Positioning requires, marketers to define and communicate similarities and differences between
their brand and its competitors.
Deciding a positioning requires:
a) Choosing a frame of reference by identifying the target market and relevant competition
b) Identifying the optimal point of parity and point of difference brand association that given
in the frame reference
c) Creating brand mantra summarizing the positioning and the essence of the brand.

2.1.1 Competitive Frame of Reference

The competitive frame of reference define which other brands a brand compete with and which
should thus be the focus of competitive analysis.
a) Identifying Competitors
Category membership the product of sets of products with which a brand competes and
that function as close as substitutes.
b) Analyzing Competitors
A company needs to gather the information about each competitor’s real and perceived
strengths and weaknesses.

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 In case study :

In Indonesia Motorcycle industries Moped

Manual contributed high number vs other
motorcycles type. In this industry there are 4
players manufactures that capture in this case.
there are Honda , Yamaha, Suzuki and
Kawasaki , there is vespa also in this industry
however the data were not included.

From the table comparison it can be seen that

Honda lead the categories of Moped (Manual)
and Sport (Manual). But Yamaha has
competitive advantage for the Moped
(Automatic) as pioneer or first mover since there is no competitor plays in this category.

Cont. to Leader in Category: Leader in Category: Leader in Category:

market share Moped Manual Moped Automatic Sport Manual

Honda 1st - 63% 1st : 65% None 1st : 58%

Yamaha 3rd - 15% 3rd : 12% 100% 2nd :34%

Suzuki 2nd - 19% 2nd : 21% None 4th : 3%

Kawasaki +/-3% 4th : 4% None 3rd :4%

2.1.2 Point of Difference & Point of Parity

Points of difference (PODs) are attributes or benefits that consumers strongly associate with a
brand, positively evaluate, and believe they could not find to the same extent with a competitive
brand.

Three criteria to determine whether a brand association can truly function as a point of
difference :
● Desirable to consumer : The brand association personally relevant to consumers.

“As the third largest motorcycle market, Yamaha Indonesia want to

introduce a new automatic motorcycle that were popular in developed
countries and was easier to learn and operate.”

● Deliverable by the company : The company create and maintain the brand association
for consumers.

“Yamaha thought the Indonesian market was ready for an automatic

motorcycle. At that time, automatics accounted for only 1% of all
motorcycle sales in country, compared with 13% in Vietnam and 18% in
Malaysia”

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 ● Differentiating from competitors : The brand associations distinctive and superior to
relevant competitors.

“Yamaha had the only two automatic motorcycles on the market, and
became the first manufacturer to offer the motorcycle specifically targeted
for women.”

Points of parity (POPs) are attribute or benefit associations that are not necessarily unique to
the brand but may in fact be shared with other brands. Three basic form of points of parity are :

● Category : Consumers view of essential to legitimate and credible offering within a

certain product or service category

“Yamaha are already known as a motorcycles manufacturer with 15% of

Indonesian market share in 2002.”

● Correlational : Potentially negative associations that arise from the existence of positive
associations for the brand.

“Consumers believed manual motorcycles outperformed than automatic

and perceptions manual motorcycles were considered for men and
automatic were considered for ladies.”

● Competitive : Designed to overcome perceived weakness of the brand in light of

competitors point of difference.

“Yamaha wanted to create distinct brand identities for the automatic

motorcycles and create effective campaigns to promote Nouvo and Mio.”

2.1.3 Designing Brand Mantra (Essence)

Brand Mantra is the 3 - 5 word articulation of the heart and soul of the brand and is closely
related concept like brand essence and core promise brand.

Role of brand mantra : powerful devices , highlighting point of difference then provide guidance
about what products to introduce under the brand, what ads campaign to run and where and
how to sell the brand.

Designing Brand Mantra :

● Communicate : Unique about the brand
● Simplify : Memorable (short, crisp and vivid)
● Inspire : Personally meaningful and relevant to many employees

Positioning for Nouvo : Tough & powerful automatic bike

Positioning for Mio : Trendy and fun bike for women

The brand mantra for Nouvo & Mio : high-quality feel and user-friendly functionality

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Brand Key of Yamaha Nouvo and Mio :

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2. 2 Defining Brand Equity
Brand equity is the added value endowed to products and services with customers such as
consumer think, feel, and act with respect to the brand, as well as in the prices, market share,
and profitability it commands.
Added value nouvo :
- 4 stroke moped with a 115 cc engine and automatic transmission
- The bike featured large, 16 – inchi wheels so it could handle Indonesia’s rough roads
- The bike had a sleek body, the metallic shades of color and minimal use of decals
gave it a slick style
,
2. 2. 1 Brand Equity Models
1. Brand Asset Valuator
a. Brand Assets Valuator Model (BAV)
There are four key components or pillars of brand equity BAV :
Energized differentiation measure the degree to which a brand is seen as
different from others as well as its pricing power
Relevance measures the appropriateness and breadth of a brand appeal
Esteem measures perceptions of quality and loyalty or how well the brand is
regarded and respected
Knowledge measures how aware and familiar consumers are with the brand
and the depth of their experience
b. The Universe of Brand Performance
Bradz
The success of a brand along those three dimensions :
a. Power, a prediction of the brand’s volume share
b. Premium, a brand’s ability to command a price premium relative to the category
average
c. Potential, the probability that a brand will grow value share
3. Brand Resonance Model
a. Brand Dynamics Model
b. Brand Resonance Pyramid
Creating significant brand equity requires reaching the top of the brand pyramid,
which occurs only if the right building blocks are put into place.
Brand salience is how often and how easily customers think of the brand
under various purchase or consumption situation
Brand Performance is how well the product or service meets customers
functional needs
Brand imaginery describes the extrinsic properties of the product or service
Brand judgement focus on customers own personal opinions and evaluations
Brand feelings are customers emotional responses and reactions with
respect to the brand
Brand resonance describes the relationship customers have with the brand
and the extent to which they feel they’re “in sync” with it

2. 3 Building Brand Equity

Three main sets of brand equity drivers :
1. The initial choices for he brand elements or identities making up the brand (brand
names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages,
and signage)
2. The product and service and all accompanying marketing activities and supporting
marketing programs

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 3. Other associations indirectly transferred the brand by linking it to some other entity (a
person, place, or thing)

Yamaha dealers set up small exhibitions at shopping mall and other public places to get
closer to the consumers and to reach them in their daily lives.These sites were called Automatic
Corners. Yamaha also participated in motor shows in 5 of the country’s largest city such as
Jakarta motorcycle show, the objective was to strengthen Yamaha’s entire portfolio.

Brand elements are devices, which can be trademark, that identity and differentiate the
brand. There are six criteria for choosing brand elemenThe first three - memorable, meaningful,
and likable - are brand building. The latter three - transferable, adaptable, protectable - are
devensive and help leverage and preserve brand equity againts challeges.

2. 4 Measuring Brand Equity

1. Brand Value Chain
2. Interbrand brand valuation method

2. 5 MANAGING BRAND EQUITY

Because consumer Reponses to marketing activity depend on what they know and
remember about a brand, as the brand value chain suggest, short-term marketing actions, by
changing brand knowledge, necessarily increase or decrease the long-term success of future
marketing action.

2. 5. 1 Brand Reinforcement
Marketers can reinforce brand equity by consistently conveying the brand’s ,meaning in
terms of :
1. What products it represents, what core benefits it supplies, and what needs it satisfies.
2. How the brand makes products superior and which strong, favorable, and unique brand
associations should exist in consumers’ minds.

By May 2002, Yamaha was a pioneer at automatic transmission motorcycle in

Indonesia, called NOUVO with tagged “Automatic” The effort to create a new product category,
the company invested heavily in advertising and promotional activities to raise product
awareness, with the campaign running until September. Yamaha do reinforce brand by:
1. Do campaign about the product by featured the young and remarkably talented British
footballer Michael Owen, and implied that NOUVO was a new and emerging star just a
Owen was.

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NOUVO PROMOTIONAL MATERIAL FEATURING MICHAEL OWEN

2. Make the tagline “Coba dulu, baru beli” or “Try first, then buy” and released world cup
schedule.

2. 5. 2 Brand Revitalization
Any new development in the marketing environment can affect a brand’s fortunes.
Nevertheless, a number of brands have managed to make impressive comebacks in recent
years. The first thing to do in revitalizing a brand is understand what the sources of brand equity
were to begin with, then decide whether to retain the same positioning or create a new one and,
if so, which new one.

After do campaign, NOUVO sales were disappointingly low in 2002. Automatic

motorcycles - which principally mean NOUVO still accounted for only one percent of total
motorcycle sales. Yamaha hire MarkPlus&Co to learn about consumer impressions of NOUVO.
Based on the market research, Beti knew his top priority for NOUVO would be to counter the
negative perceptions about automatic motorcycles. He also wanted to strengthen the bike’s
appeal to younger riders and urban commuters.

2. 6 DEVISING A BRANDING STRATEGY

A firm’s branding strategy often called its brand architecture reflects the number and
nature of both common and distinctive brand elements. Deciding how to brand new products is
especially critical. A firm has three main choices:
1. It can develop new brand elements for the new product.

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2. It can apply some of its existing brand elements.
3. It can use a combination of new and existing brand elements.

To enter the automatic motorcycle segment, Yamaha used some option, like:
1. Develop new brand elements for the new product and that’s called NOUVO.
2. Used a combination of new and existing brand elements to create female motorcycle that’s
called MIO.

2.6.1 Branding Decisions

Today, branding is such a strong force that hardly anything goes unbranded. Assuming
a firm decides to brand its products or services, it must choose which brand names to use.
Three general strategies are popular:
1. Individual or separate family brand names.
Consumer packaged-goods companies have a long tradition of branding different products
by different names.
2. Corporate umbrella or company brand name.
Use the corporate brand as an umbrella brand across their entire range of products
3. Sub-brand name.
Combine two or more of the corporate brand, family brand or individual product brand
names.

When Yamaha see the opportunity at automatic motorcycle segment, they used two of
three general strategies, which is “individual or separate family brand names and corporate
umbrella”. Yamaha create different brand for male (YAMAHA NOUVO) and female (YAMAHA
MIO).

2.6.2 Brand Portfolios

A brand can be stretched only so far amd all the segments the firm would like to target
may not view the same brand equally favorably. Marketers often need multiple brands in order
to pursue these multiple segments. Some other reasons for introducing multiple brands in a
category include:
1. Increasing shelf presence and retailer dependence in the store.
2. Attracting consumers seeking variety who may otherwise have switched to another brand.
3. Increasing internal competition within the firm.
4. Yielding economies of scale in advertising, sales, merchandising, and physical distribution.

To increase the motorcycle sale in Indonesia, Yamaha see the opportunity at automatic
motorcycle segment. In that segment, there are two categories which is male and female.
Yamaha decided create the brand called NOUVO (for male) and MIO (for female).

2. 7 Customer Equity
Customer equity is a result of customer relationship management. Customer equity is
the total of discounted lifetime values of all of the firms customers. In layman terms, the more
loyal a customer, the more is the customer equity. Customer Equity is made up of three
components:
1. Value Equity
2. Brand Equity
3. Relationship Equity.

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III. Conclusion & Recommendation

3.1 Conclusion

Introduce new category of motorcycle when the market already have the top preference type
isn’t easy type. This is like entering “new market”.Yamaha face challenges when launch Nouvo
is they should talk as to launch new product and should create new product strategy since
Indonesian people feel un familiar with the product and still focus on manual version of
motorcycle.
the campaign had not deliver right message and yet not powerful enough to make people
purchase the bike.
From the research, Yamaha adopted new strategy, the positioning of will be changed into
“tough, powerful and practical bike for men” and Mio will be launched and positioned as “Trendy
and fun bike for female”.

3.2 Recommendation

As to move forward, usually before launch new product supposedly research should be done to
know the opinion and likeness or acceptable level from people / bike users regarding our
product. The test can be launch in form of focus group discussion to bike uses and they feel
regarding the product and communication that Yamaha would like to deliver.
Entering category with new type meaning drive new habit for the consumers. Introduce brand or
product that face the belief of Indonesian male users used to ride manual motorcycle as they
thought easy for the maintenance, powerful, and looks manly. Yamaha has to tap in with
communication that able to answer the doubt on the product itself. Such as keep the manly
pride, communicate the easy maintenance for automatic bike and perform premium and manly
image to the customers. By providing image or visual man that looks brave and cool while ride
the automatic bike. For woman, easy to use and safe should be the key communication to
answer the taboo belief of women and motorcycle.

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