Industry Report Analysis

On
Yamaha Music

Submitted By-Shruti Modi

Submitted To- Dr. Sahil Singh Jasrotia

Sec- A
JI/2022-24/0148
Musical Instruments Business
 Revenue: ¥ 276.2 billion
 

 Core operating profit: ¥ 37.3 billion

(Fiscal 2022, IFRS)

Yamaha Music Contribution

Pianos

Yamaha offers the distinctive Yamaha pianos melding acoustic and digital technologies
and designed to be inviting to customers ranging from top-level professional pianists to
beginners.

Share of the global piano market 39%

Digital musical instruments

Product lineup spans from digital pianos and portable keyboards, for which they boast
world-leading market share, to synthesizers, stage pianos, Electone™ electronic
organs, and hybrid products that meld acoustic and digital technologies.

Share of the global digital piano market Share of the global portable keyboard market

52% 47%
Wind, string, and percussion instruments

Over 15 different kinds of wind instruments, such as trumpets and saxophones and
string instruments such as violins, to acoustic and digital drums and timpani.

Guitars

We offer a broad lineup of acoustic guitars, electric basses, amplifiers, and peripheral
equipment.

Growth of Musical Instruments Industry in India

The Indian musical instruments market is predicted to witness a CAGR of 11.5% over the
forecast period (2021-2026). Main factors leading to the growth are-

 Technological Advancements- major players are motivated to design and develop a wide
range of enhanced musical instrument versions. The addition of built-in software to musical
instruments improves performance and sound quality.

 Growing popularity of live musical performances, concerts and increasing role of social
media platforms, such as Instagram, You tube and Facebook is leading to increased
popularity of lives, concerts & recorded videos.

 More people choosing music as profession. The no. of self-employed musicians has
increased in recent years, so the demand for high-tech and high-priced musical instruments
has also increased.

Key Market Trends

 Personalization- Customers can customize their electronic musical instruments by selecting

from a range of forms and sizes, customizing inlays and guitar necks, and selecting from high
exotic and conventional hardwood alternatives. The personalization and customization of
electronic guitars will significantly accelerate the market expansion.

 Synthesizer- The desire of composers to have more control over their sounds led to the
development of a machine which is specially designed to produce electronic music called as
synthesizer. So this is one of the market trends.

 Emphasis on DIY and at-home recording techniques leading to the growth of live-sound /
audio studio market.

 Online Distribution Channel will observe a gradual growth- Pandemic had an unprecedented
impact on the music business, particularly arts & artists. So musicians have now adapted to
the new normal and have adapted to social media platforms to maintain connections with
audiences.

COMPETITIVE LANDSCAPE

Key Market Players-

DIRECT
Roland, Kawai, Steinway & sons (Piano’s)
Fender, Kadence (Guitars)
(With the same target market)

FUTURE
Silver-tone (Guitars)
Sony (Pianos)
(if certain changes can be happened in their product.)

POTENTIAL
Casio.
Kawai
(Recently Their outlets are in the metros city probably to come in tier 2 cities.)

REPLACEMENT
Kadence
Casio
& Local Companies
(It can be another choice of the buyers after Yamaha)

INDIRECT
Software for music instruments
AI Technologies
(Certain technologies are used in music Studios)

Advantages Over its competitors-

• Pricing
• Services
• Brand Image
• Quality & Durability
• Location & Availability

Market Dynamics

Drivers

 Surge in demand for electronic or self-playing musical instruments

 Increase in popularity of music concerts and live performance
 Increased purchasing power of the people

Restraint

 High cost of electronic musical instruments

 Customers' lack of desire to purchase musical instruments
Opportunity

 Growth in e-commerce sales

 Increase in adoption of advanced technology

About Yamaha Music

Yamaha Corporation is a Japanese multinational conglomerate that offers a diverse range of

products and services. It is the world’s largest piano manufacturing company and one of the
constituents of the Nikkei 225. 
Despite the fact that Yamaha Corporation is still a major shareholder, the former motorcycle
division was founded in 1955 as Yamaha Motor Co., Ltd., which began as an affiliated company
but later became independent.

 
SWOT Analysis of Yamaha
 Strengths of Yamaha

1. Wide Product Range- It produces wide range of musical instruments as mentioned above in
the product portfolio. In its main categories like guitars, pianos, it has huge variety and updated
technology products. Like it has recently launched synthesizers, electric guitars. Recently
Yamaha has launched 2new guitars in acoustic versions.

2. Quality and value- Yamaha provides great quality music instruments, this is the one attribute
which keeps its customers hooked to the brand. A customer mostly considers Yamaha as a
potential brand to buy instruments. Though the products are expensive but customers still buy
due to the value and quality provided.

3. Excellent Reputation- Yamaha is one of the 69 most well-regarded corporations in the world,

according to Forbes, due to its outstanding success over time. The company is old and the brand
image is very high. That’s one of the reasons why it does not focus on marketing because
customers are drawn automatically because of product quality and excellent brand image.

4. After sales services- Yamaha’s after sales services are very good. They even provide services
after 10 years. That’s why consumers rely on the brand.
 
Weaknesses of Yamaha
 
1. The distribution channel of Yamaha is limited and falls short. It has only 1 brand outlet in a
state. For example- In Madhya Pradesh, it only has an outlet called Yamaha music square at
Indore. So those who want to visit the official outlet in other cities has to come to Indore or to
other centralized store.  

2. Yamaha music does not focus on marketing & advertising as it focuses more on brand
equity but as a BCG matrix star or Yamaha Corp. it should spend more on marketing and
advertising. It does not use traditional mediums of advertising.

3. As there are fewer distribution points, so there are fewer service points. Customers might
consider convenience of getting after sales service or other services. This could discourage them
of purchasing from Yamaha Music.  

4. Does not specialize in specific instruments, like it’s competitors which specializes in guitar i.e.
Gibson.

5. Yamaha has an expensive range of musical instruments. Some of it’s instrument’s starting
range is beyond mid-range of other companies.

Prices of Yamaha products

 PSR 1500 keyboards- Rupees 24,990
 Kids keyboard -Rupees 44,90
 Portable Keyboard -Rupees 19,990
  Grand piano – starting form 24 lakh

 
Opportunities of Yamaha

1. Focus on online sales- Expanding into new regions and developing markets can help a brand
increase sales. After the Covid pandemic musicians have shifted online too. Just like that
company should also focus on creating an online presence as customers are shifting towards
online shopping.

2. Electric Instruments- Yamaha is already working on electric musical instruments. As

discussed above in the key trends in musical instrument industry, adoption of electric
instruments has already begun in many areas. Yamaha should launch products in this category.

3. Distribution-The brand requires a greater number of distribution and service sites. It's a flaw
in Yamaha's lineup, and addressing it may be a win-win situation for the company.
4. Expansion in new markets- The majority of Yamaha's products are premium, whereas the
company should focus on the low and mid-tier categories. As the company focuses on premium
products only, it should enter into mid tier categories by launching such products to create a
global presence.

5. Rising Disposable Income and Emerging Markets- Rising disposable income has led to
people’s interest in entertainment and recreational activities. Music concerts, lives are in trend.
This the company can tap new markets by looking for countries where GDP is increasing.
 
Threats to Yamaha
 
1. Increasing competitors – As the sector is booming, there are a lot of existing and emerging
competitors in music instrument industry. Competition has an impact on the company's top and
bottom lines at all times.
 
2. Lack of Promotion- Yamaha’s rigid strategy of not doing much promotion but relying on
its pre-established brand image can cost it lack of sales. As there is lower brand recall than
its competitors.  

3. Local Brands:  There are so many local brands which can be its competitor in near future ,
like for example in Indore there is a Jingle Bell shop and which is at walking distance away from
the Yamaha showroom , so this can lead to shift in customers .

Conclusion

Yamaha is a Japanese Company and it was earlier focusing on the Japanese preferences and
style. But now company is growing globally and is the largest musical instrument manufacturing
company. It works on the principles like sharing, targeting passion and most importantly
performance of goods. Company is also focusing on innovation and emerging trends. Yamaha
produces instruments for all age groups, from kids to old, for different trainer levels i.e. for
beginners & advanced. The company produces durable, high quality, high value products and has
a very high market value. But looking at it’s SWOT analysis , there are certain threats and
weaknesses for company that it should work on. As the no. of competitors are increasing and
their market share is also rising which is a threat to Yamaha Music. To cope up with these,
Yamaha should work on its rigid distribution, marketing policy and should bring acceptance to
feedback. As the company is rigid about its manufacturing and does not produce customized
products, which is the upcoming trend in the market. The competitors mentioned above all have
unique qualities that make them the first choice for customers in their respective fields. For
example, Roland makes excellent synthesizers that are used by top musicians all over the world.
Casio has a large piano market, and Kawai makes instruments with the best sound quality. This
can be a threat to Yamaha Music because Yamaha does not unique range. Thus, to remain
dominant in market Company should bring innovations and bring flexibility and tap various
opportunities mentioned in the report. Company should also work on its promotional mix to
improve brand recall as in the upcoming time the competition is going to increase.

References

https://www.marketresearch.com/
https://in.yamaha.com/
https://medium.com
https://embapro.com/
https://en.wikipedia.org/