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Monday, August 15, 2011

Factors Affecting the Sales Performance of Selected Motorcycles Dealer in Metro Manila Taxable Year of 2007 to 2009

Literature Review

Because of the continuous effort of the manufacturers to achieve the most desirable products, the development in the motorcycle industry became successful and adds to the aggressiveness of the industry to perform with the competition. However, the most important aspect in producing a product is their capacity to deliver the expected services which can accommodate its cost. The motorcycle industry in the Philippines went into various stages and generates the income among its dealers. Apparently, there is a recognizable trend that affects the sales performances of the selected motorcycle dealers like Solaris Sunshop, Sure Deal Mktg Corp., Trixx Bike Shop, Exceed Motor Sales, Cycleplus Enterprises Co, and many others.

In the Philippines, motorcycles are often seen with appended sidecars and primarily used as the mean of public transportations among the rural areas. This transportation means are called tricycle. In Bangkok, Thailand the tricycle is called “tok tok”. On the other parts of the Philippines, the motorcycles are modified and called “habal-habal” which is described to have the extended seats for additional two people (except for the driver) that can stand on the rough, steep terrain, and narrow roads in the provinces. In recent years, the usefulness of motorcycles extended by using it as another equipment to provide market for food industry through the food delivery services. In this way, people from other parts of the world can witness the creativity of the Filipinos. From the influence left by the ancestors and matched with the continuous learning of the new generation, the people can create vehicles that can compete with the other manufactured products.

The sales performance from the past years is taxable and this is the basis of the national taxation for the enterprises. The government is expecting the business owners, manufacturers and dealers should cooperate by declaring the right amount of sales and revenue they gained for the year 2007-2009. Dealers can be divided into two categories – one are the dealers who handles the tools and other parts for the motorcycles, and the other are the dealers who sell completely built motorcycles. There is an obvious trend that if there is an increase in the market of the completely built motorcycles, there will be a market for the dealers of parts. Apparently, most of the people in the Philippines own a single motorcycle, because of the convenience that it can bring. In terms of easy function, motorcycles are now engineered to the most light-weight yet strong materials in which even a girl can drive. In terms of storage, the motorcycles are compatible to a garage that has limiting spaces. And in terms of speed, motorcycles promises the advantages to the driver in which he can surpass the other vehicles even in traffic. However, the only drawback that can be recognized in using the motorcycle is the safeness. Accidents happens and most of the time, the motorcycles are involved.

The Sales Performance

The sales performance of the dealers might depend on the brands they offer. Like for example, in 1973 up to the present times, the Norkis maintained its leadership in motorcycle sales while the Suzuki appeared to be the consistently has the lowest market share. In 1988, Kawasaki occupied the second brand in top sales position. In the motorcycle parts category, the upgrade standards introduced by the Motorcycle Development Program (MDP) are followed by over 130 participants. The dealers of the parts and their manufacturers are composed of small entrepreneurs but the standards made their business profitable because of the assistance offers by the MDP. For example, to ensure that the products are in quality and in good condition, there are technical services and use of the facilities for testing.

The continuous boost of sales of the motorcycles dealers can be traced through the prices and the other contributing factors. First is the engine of the motorcycle that can be also the most influential factor in prices. The size, power, type and other properties are the most concerned element to achieve the performance of the motorcycle. Second is the level of expertise, particularly the reputation of the dealers. The design they offer as well as the warranties they provide for such model creates a great impact towards customer satisfaction. Third is the type of motorcycles they offer. If the dealer has the type of motorcycle that the consumer wants, the sales might occur. And fourth is the Brand name, which is considered as the added factor in the motorcycle industry. In this generation, the motor enthusiasts are looking for the Ducati or Harley Davidson.

Main Source:

Pineda, V.S., (1994) Motorcycle and Parts Industry: Impact of Trade Policies on Performance, Competitiveness, and Structure, Philippine Institute for Development Studies [Online] Available at: http://dirp4.pids.gov.ph/ris/rps/pidsrp9402.pdf [Accessed 10 August 2010].

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