Motorcycle industry in Thailand

Topics: Motorcycle, Suzuki, Marketing Pages: 41 (10935 words) Published: October 5, 2013
Executive Summary
Thai motorcycle industry entered in Thailand since 1964. There are four main players in this industry including Honda, Yamaha, Kawasaki, and Suzuki. Even there are not much competitors but the competition among them are fierce. Thai market for motorcycle is in maturity stage. This makes the players have to use strong strategies to possess market share. The dominant player in this industry is Honda For customer analysis, among four leader players they quite focus customer similar group. It might be because nature of product is suitable to certain group of people. However, they try to differentiate by focus niche group with new lifestyle. The common target group is teenager to working age. This result in the way they communicate to each target group. As motorcycle is product that are high value so the level of consumer involvement decision are high as well. People try to study what advantages and disadvantage of each model in each brand. Nevertheless, point of purchase in the sale point pays important role. As we can see from the retail show room, promotions broad are very attractive and different among the shops. Therefore, customers can not make decision from their home. Dealer in show room encourage customers to visit the shop to meet direct sale person for the information. For competitive analysis, the players are keeping develop themselves particularly many strategies. Honda has the most capacity and sales while other competitors also grow continuously. They have different strength points. For example, Honda is the 1st Fuel injection system applied while Yamaha is 1st produced automatic type of motorcycle and 1st produced Eco Motorcycle. For future trends, in short term, it will not much change in position of leader but they will try to focus target customer narrowly and differently. For long time Thai market might decline. However, sale will go constantly but not jump high because people will buy new motorcycle when they want to replace the old one. Motorcycle Industry

Motorcycle industry in Thailand is growing dramatically. It is because proper geographical and economic structure. Particularly geographic, Thailand has a popular over 65 million people. The areas are flat for the most part. For some rural area it is much better to use motorcycle and in the big city with heavy traffic jam motorcycles have become the most convenient vehicle for quick travel. Thai motorcycles industry was monopolized by the Japanese four brands are Yamaha, Honda, Kawasaki, and Suzuki. History

First stage: Import parts for assembly (1964-1977) – CKD stage

In 1964 Board of Investment (BOI) got a policy to promote producing motorcycles in Thailand to replace imports. In 1966 Siam Yamaha Co.,Ltd is the first company which established motorcycle assembly factory. Thai Honda Manufacturing Co.Ltd began to operate as the second factory in next year. Then in 1968 Thai Suzuki motor Co.,Ltd was third motorcycle manufacturer in Thailand. Later in 1971 the market was sluggish including increasing the number of import used motorcycle. Therefore, the government announced the policy to prohibit import used motorcycle. In the same year, the government got the first motorcycle industry policy. The significant issue is the assembly motorcycle manufacturer have to use parts from domestic 50 percent of all parts within 2 year since the announced date(3 November 1971) to be competitive and suspension establish motorcycle plants within 5 years from announced date(3 November 1971) to accomplish economy of scale. Until the end of the announcement in 1976 Thai Kawasaki Motor Co.,Ltd established as the forth assembly plant. In 1977, the government required the existing motorcycle producer use at least 70 percent local parts within 2 years. As for expand and new factory must use parts from local at least 70 percent since start the operation. Moreover, Industry ministry had a policy to assign motorcycle plants to produce...
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