Yamaha 2003 Annual Report Download - page 7

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ANNUAL REPORT 2003 5
Restoring Profitability
Under our medium-term management
plan, we set goals calling for net sales
of ¥560 billion and operating income
of ¥25 billion by March 31, 2004.
Here, we would like to discuss the
progress we have made under the
plan thus far.
In musical instruments, part of
our Core Businesses group, we remain
committed to targeting the market
for adults in Japan, cultivating the
Chinese market, and expanding our
business in the music production
equipment market.
Domestic Music Market for Adults
Birthrates are continuing to fall,
undermining demand for products
and services targeting children, a seg-
ment that has traditionally comprised
our primary market for music and
musical instruments. To cover losses
in this area, YAMAHA is working to
cultivate the market for adults with
the aim of reinvigorating its domestic
musical instrument business.
In particular, we are developing
products and services that target
those in the “Beatles generation,”
many of whom love music and have
time and money to spare.
Achieving a Genuine Profit Recovery
To this end, in Sapporo, Japan, we
have established the first “MuseClub”
facilities where members can learn
and perform music. And we have
opened 52 music schools for adults,
bringing the total to 100 over a three-
year period. Furthermore, we have set
up a musical instrument rental sys-
tem, presently encompassing 550
outlets, to help promote the market
for adults. Finally, we are continuing
to focus on stimulating latent demand
among adults by developing such
new concept products as the “EZ-EG:
electronic guitar with twelve lighted
frets” and the “Sound Sketcher:
MP3 recorder.”
Technology Synergy
2. Lifestyle-Related
& Leisure
3. Electronic Parts & Materials
1. Core Businesses
Brand Synergy
Sound & Music
string and per
Yamaha Motor Co., Ltd.
AV & IT
Musical Instruments
Semiconductors
Media-Related
Automotive Components
Golf Products
In- House Services
Electronic Metals
Factory Automation/
Metallic Molds
Yamaha Music Foundation
Lifestyle-Related
Recreation