Yamaha Indonesia: Nouvo and Mio Market Position

Yamaha Indonesia (B): Nouvo and Mio Market Position

Nigel Goodwin and Hooi Den Huan

Yamaha Indonesia (B) continues the story by describing the Nouvo and Mio efforts and examines the company's subsequent position in the automatic motorcycle category. By December 2005, Yamaha controlled roughly 95 percent of the category; however, the category constituted only a small fraction of the total motorcycle market. In addition, Yamaha's rivals planned to introduce competing automatic products in 2006. The case examines the twofold challenge of expanding the automatic category while defending Yamaha's share. It examines a range of issues in marketing, advertising, promotion, brand management, channel management and new market development, with emphasis on product positioning and competitive strategy.

Nouvo

Nouvo was launched in May 2002 as Indonesia’s first automatic motorcycle. A high profile advertising and promotional campaign ran from May until September 2002 but initial sales were disappointing. From the market research that was conducted in December, it was found that product awareness was high among Indonesian consumers, but only a few who wanted to purchase the bike regarding the body, performance and image reasons.

Yamaha re-designed and re-launced Nouvo in 2003, by changing it to a more eye-catching look. The company created a new brand personality for Nouvo, positioning it for male students and male working professionals. The main key characteristics of its rider image were: Dynamic, Smart, Modern, and Strong.

To promote Nouvo, the company aired television commercials with different messages. These ads addressed the misperceptions about automatic motorcycles and tried to correct them. Yamaha also continued the original test ride program at dealerships and repair shops, and to place the Automatic Corner exhibitions in malls and public places, as well as sponsoring activity clubs.

Mio

Mio was launched in January 2004. It was physically...