Proton Mm-combined (1)

8/12/2019 Proton Mm-combined (1)

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University of Malaya

Faculty of Business and

Accountancy

Graduate School of Business

Master of Business Administration

___________________________________________

CMGB 6101 MARKETING MANAGEMENT

PRODUCT : PROTON EXORA 2

For: Michael M.Dent Msc, MPhil, M!M

Prepared by:

"alisah Ashari GA #$#%#$

&inda Sim Sie' (ian GA #$##%)

*eh hye Ben+ GA #$##-

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APP0/D!0S

i? /issan Grand &ivina S@ecification

ii? Proton 0ora S@ecification

iii? am@ai+n Flo' hart

EXECUTIVE UMMAR!

Proton 0ora is a com@act multi>@ur@ose vehicle MP2? model @roduced Cy Malaysia car

manufacturer no'n as Proton "oldin+s Berhad Proton?. *he ne' model car 'as launched

on %- A@ril 7##8, 'hich is the first Malaysian desi+ned MP2. Proton 0ora is a ne' lifestyle

family vehicle, 'hich comCines advanced stylin+, s@acious interior, 'hich accommodates 9

adults and has multi@le usa+e, hi+h Euality desi+n and +ood @erformance 'ith em@hasis onthe value for money factor.

Des@ite the Cenefits offered Cy Proton 0ora, our +rou@ had identified fe' maor @roClems

faced Cy Proton. ne of the maor @roClems faced Cy Proton is Proton has lost its maret

share to local and forei+n com@etitors from )# of the domestic @assen+er car maret in

7##% to 78 for the first half of 7##$ Malaysian Automotive Association 7##$?. ProtonHs

Crand value has also dro@@ed from 3M78 million in 7##9 ran %8? to 3M%-# million in

7##$ ran 7?. *he latest ne's on 7rd

/ovemCer 7##8 reveals that ProtonHs ranin+ has

dro@@ed from MalaysiaHs # Most 2aluaCle Brand MM2B? ranin+.

*herefore, our +rou@ has recommends ne' conce@t car no'n as Proton 0ora 7 'ith

additional im@rovised features included to enhance the @erformance and increase the demand

for Proton 0ora car. PossiCle solutions to miti+ate the @roClems identified are Cy introducin+

Pa+e 6


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additional value im@rovised features to enhance the @erformance and sales of Proton 0ora 7

Cy focusin+ on fuel efficiency, convenience and safety and em@hasiIin+ on the environment

friendly vehicle. verall, the action @lans recommended are Cased on 5PsH strate+ies and

maretin+ mi models.

1" INTRODUCTION

1"1" A#$% I&d#'$ry (& )e&era* 200+

*he automotive industry in Malaysia can Ce considered as one of the most im@ortant and

strate+ic industries in the manufacturin+ sector. om@ared 'ith other industries in the

manufacturin+ sector in Malaysia, the automotive industry is ho@ed to Coost the

industrialiIation @rocess so that Malaysia can Ce a develo@ed nation Cy 7#7#.

Vehicles Sales Unit Market Share Ranking

Jan - June

Jan

June

Jan -

June

Jan

June

Jan

June

Jan -

June 2007 2008 2007 2008 2007 2008

1 Perodua

75

!8"

8"

58# "!$2 "0$1 1 1

2 Proton

!%

#55

72

#57 21$" 2%$2 2 2

" &o'ota

"%

572

5"

12# 1%$% 1#$1 " "

! (onda

1!

175

1%

7%% %$! % ! !

5 )issan

8

""%

1!

#25 "$8 5$! % 5

% )a*a

10

8#8

%

70# !$# 2$! 5 %

7 +noko, !"""

"8#2 2 1$! 7 7

8 Mitsuishi

2

"!1

"

2!0 1$1 1$2 10 8

# .aihatsu

2

"7%

2

%70 1$1 1 # #10 Su*uki 2 0$" 0$# 1# 10

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7"# %02

Tab*e 1:MAA 2ehicle Sales, Maret Share and 3anin+ Summary for *o@ %# Passen+er

ars = ommercial 2ehicles in Malaysia for


6/41

eore the holida's o (ari Ra'a$ urther the oost in /assenger car sales o in

Se/te,er 2008 can e attriuted to the i,/roe,ent in con6dence o

consu,ers and their enhanced liest'les$ (oeer in 200# the /ros/ect as

so,eho di9erent due to the gloal crisis hich a9ected a nu,er o countries

around the orld$ &his has caused the sales o auto,oiles to re,ain lo as

anks are increasing their interest rates to race or the lo olu,es$ :esides

the gloal crisis the rise in oil @rices has also affected the sales of Malaysian automoCiles.

Sales are e@ected to decline as consumers decide to hold Cac in their @urchasin+ and this

'ill definitely affect P3*/ as sho'n in their sales.

urrently vehicles that are manufactured Cy Malaysian com@anies such as P3*/,

P03DUA, !noom and Malaysia *ruc = Bus M*B? are @riced lo'er than com@araCle

vehicles that are @roduced Cy the assemClers and es@ecially that of the BU im@orts. *his

has allo'ed lo'er level income earners to o'n a car 'ithin their household.

For year 7#%#, it is e@ected that there 'ill Ce a return to @ositive annual +ro'th in ne'

vehicle sales althou+h it may seemed that the im@act is a slo' one. &on+ term e@ectations

are hi+h for the small car se+ment, as the MAA envisa+es a shift to'ards more fuel>efficient

cars. Besides the recovery in the economy, 'ith technolo+y and research and develo@ment

undertaen Cy the auto com@anies, it is e@ected that there 'ill Ce a rise in the sales of cars in

the near future.

2" COMPAN! BACKGROUND

P03USA"AA/ *MB!& /AS!/A& B03"AD or P3*/ 'as incor@orated on

May 9, %8$ to manufacture, assemCle and sell motor vehicles and related @roducts,

includin+ accessories, s@are @arts and other com@onents. P3*/ @roduced MalaysiaHs first

car, the Proton SAGA 'hich 'as commercially launched on


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P3*/ 'as @uClicly listed on the (uala &um@ur Stoc 0chan+e (&S0? in %887 and its

shareholders include (haIanah /asional Berhad, Petroliam /asional Berhad, MitsuCishi

or@oration, MitsuCishi Motors or@oration, 0m@loyee Provident Fund Board and other

local and forei+n investors.

P3*/ had some maor challen+es in the recent years, 'ith ne' com@etition and the

dere+ulation in the industry. Proton (oldings :hd has sung into the lack in 2008

ith a cu,ulatie net /ro6t o RM202$# ,illion co,/ared ith the loss o

RM58#$5 ,illion it registered in 2007$ &he national car,aker;s reenue rose 1!$%

/er cent to RM5$%" illion ro, RM!$#1 illion a 'ear earlier$ 4ne o the reason

o this achiee,ent is due to the introduction o ne ,odels ith higher /ro6t

,argins stronger sales olu,e saings ro, grou/-ide cost-reductioninitiaties inco,e ro, the sale o rights or use o +ntellectual Pro/ert' Rights

relating to a ehicle /lator, as ell as the R?. grant$

For the year 7##$, P3*/Hs focus 'ould Ce in the core areas of @roduct, Euality, cost

efficiency and distriCution net'or. P3*/ aims to have a stron+ @roduct @ortfolio Cy

introducin+ Jthe ri+ht car, for the ri+ht maret, at the ri+ht @rice and at the ri+ht timeK. *his

'as reflected in the or+anisationHs ne'ly introduced 0ora, Persona and Sa+a Models, 'ith

the latter @o'ered Cy the ne' amPro !AFM en+ine. P3*/ has also continued to u@date

and refresh eistin+ @roduct lines to entice and attract customers.

2"1" Pr%d#,$' a&d er-(,e'

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P3*/Hs model @roducts include ;A


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ontroversies surroundin+ P3*/ till date include the auses and i,/ro/rieties in

the mal@racticesissue oa@@roved @ermits APs? or i,/orted cars, entry of forei+n cars

at elo-cost /rices the 20-'ear @rotectionist @olicies accorded to P3*/ and

other @uestions concerning the national auto,otie /olic'$

&he 20-'ear @rotectionist @olicies accorded to thenational automaer P3*/ 'as the

+overnment 'ays of emulatin+ other vehicle manufacturin+ countries. *un Mahathir

Mohamad, the former @remier and @resent advisor to P3*/ once said that 'ithout such

@olicies, Malaysia 'ould not have a car industry, admittin+ that Proton had +ained $# @ercent

maret share Cenefittin+ from @rotectionism,K and P3*/ other'ise 'ould not have Ceen

aCle to @enetrate forei+n marets due to the economies of scale

Mal@ractices are rife des@ite the Cenefits of the im@ort system of A@@roved Permits APs?.

P3*/ also lost money due to the lo'er @rices of forei+n cars sold in Malaysia. !t has

Ceen identified that lo'er @rices for forei+n cars is due to volume and P3*/ 'ould not

Ce aCle to achieve this Cecause of their @rotected car maret.

."2" B#'(&e'' M%de*

!t is hard to see P3*/ ever main+ money consistently 'ith the current Cusiness model

that it o@erates. At the heart of the car Cusiness is all aCout t'o Casic thin+s: cost structure

and @roduct. General Motors failed Cecause it messed u@ on Coth counts.

*he lessons from GM are sim@le > mae @roducts that @eo@le 'ant, and mae them in a cost>

efficient 'ay. Mar+ins are +enerally so thin in the auto Cusiness that car factories really only

mae money 'hen they are runnin+ at or near full ca@acity. P3*/ has not one, Cut t'o

factories that can out@ut a comCined maimum of %.7 million cars a year, yet it Cuilds only

%-),$5- units.

Given that the vehicle maret here is 'orth half a million units annually, even if 'e roused

enou+h @atriotic fervor to +et every car Cuyer to choose a P3*/ over any other Crand,

that 'ould still soa u@ only half of the total ca@acity.

."." #a*($y C%&$r%*

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P3*/ 'as estaClished 7- years a+o Cy *un Mahathir Mohamad as @art of an amCitious

national industrialiIation @lan, Cut it has lon+ Ceen criticiIed for @oor Euality and

unim@ressive desi+n.

P3*/Ns maor @roClem, as everyCody no's, is Euality control. om@laints ty@ically

relate to failures in @o'er 'indo's, doors and alarm systems. !tHs not unusual very

common, to Ce @recise? to hear @uClic com@laint aCout the overall @oor Euality vehicles Cy

P3*/ over the years and indirectly affectin+ the financial result of the com@any, 'hen its

sales d'indled tremendously and continuously losin+ maret share and suCseEuently, the

@rofit mar+in eroded suCstantially too.

P3*/Ns head of Cody en+ineerin+ once told a local ne's@a@er that the Cenchmar for

'orld Euality class cars is t'o defects @er car Cut from our oCservation, 'orld class Euality

car manufacturers have Ceen aimin+ for Iero defects all this time. D !* 3!G"* *"0

F!3S* *!M0 O slo'ly Cut surely the learnin+ curve must sho' @ositive result. Most

successful com@anies are.

."" E,%&%3(, 4a,$%r'

.""1" Dere)#*a$ed 3ar5e$

P3*/ Ns maret share has slum@ed over the years, as it faced difficulties co@in+ in a ne'

dere+ulated maret.

*he +overnment has ur+ed P3*/ to for+e a @artnershi@ 'ith a forei+n automaer to +ive

it the e@ertise and economies of scale that it needs to survive, Cut tals 'ith 2ols'a+en and

General Motors have colla@sed 'hen the Government decided it is Cest to ee@ the

P3*/Hs o'nershi@ or ris losin+ control over the desi+n and @roduction of the national

car maer.

.""2" Te e-er7(&,rea'(&) ,%'$ %4 3aa,$#r(&) a&d ra8 3a$er(a*'

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P3*/, in FeCruary 7#%# had made net @rofits for t'o Euarters in a ro' due to lo'er

o@eratin+ costs and increased sales.

"o'ever, it still Cooed a net loss of 7.87 million rin++it %# million dollars? for the nine

months to DecemCer, althou+h it 'as smaller than the -8#.55$ million rin++it loss a year

earlier.

*he P3*/ chief said the carmaer 'ould @roceed 'ith e@ansion @lans des@ite the

soarin+ cost of ra' materials.

.""." a5e& ,%&'#3er ,%&4(de&,e '$e33(&) 4r%3 $e $rea$ %4 )*%ba* e,%&%3(,

'*%8d%8& a&d a& %-er7,r%8ded %pera$(&) e&-(r%&3e&$

Des@ite the challen+es that @ersistently im@act the industry, 'hich include the ever>

increasin+ cost of manufacturin+ and ra' materials, shaen consumer confidence stemmed

from the threat of +loCal economic slo'do'n as 'ell as an over>cro'ded o@eratin+

environment. GloCally, the automotive industry is +oin+ throu+h a @eriod of chan+e,

reflectin+ Coth the ra@id chan+e of technolo+y, increasin+ need to com@ly 'ith continually

more strin+ent re+ulatory reEuirements and increasin+ liCeraliIation of marets. "i+her

@etrol @rices and increased cost of ra' materials and manufacturin+ resultin+ in lo'er @rofit

mar+ins, also @osed a challen+e. !n addition, the declinin+ trend for vehicle sales commenced

in early 7##), Cecause the macro>economic factors, hi+her interest rates and stricter lendin+

@ractice.

."9" P%*(,y

."9"1" Ep%r$ P%*(,y

Accordin+ to De@uty Minister of Finance Datu Dr A'an+ Ade "ussin, P3*/ e@orted

a total of %$,57) cars in year 7##8, from the %#$,5#- that it Cuilt in 7##$. Althou+h the focus

no' is on e@orts, Coth numCers are cause for concern for the national car com@any.

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!n the li+htnin+ @ace of the automotive industry today, it is small 'onder 'hy P3*/ is

findin+ it hard to ee@ u@ overseas and increasin+ly in Malaysia as 'ell. Product

lifecycles are +ettin+ ever shorter that it feels as thou+h carmaers are introducin+ ne' model

line>u@s virtually every year. P3*/ in contrast unveils on avera+e a ne' model or model

variant a year. *his re@lacement rate sim@ly 'ill not do for consumers 'ho have +ro'n

accustomed to seein+ fresh models in the forecourts of its com@etitors.

ne of P3*/Hs o'n Middle 0astern distriCutors lamented the same 'hen he +ave u@ the

Cusiness. ;hen *oyota, "onda and the rest 'ere s@rin+in+ models left and ri+ht, P3*/Hs

lan+uid @ace 'ith facelifts and re@lacement models failed to hold CuyersH interest. !t is slo'

Cecause P3*/ cannot afford to have it any faster. /ot 'hen its rate of returns is so lo'.

*he Savvy, for instance, starts at Q9,88- 3M 55,###? in the U(, one of the fe' marets that

P3*/ e@orts to. *hat +ets you a (ia Picanto and Q7,### in chan+e. r, if you 'ant to

Clo' every sin+le sterlin+, you mi+ht o@t for a 2ols'a+en Polo, alCeit a @retty Care version.

;ith manufacturers @ushin+ 'ell into seven>fi+ure @roduction territory, P3*/Hs %#$,5#-

do it no favor at all. UnaCle to +enerate the ind of volumes that any mass>maret

manufacturer needs to Ce viaCle, P3*/ cannot ho@e to match the scale or enoy the

Cenefits that its com@etitors have.

*o have P3*/ address its dismal e@orts 'ith ur+ency is to have it treat a sym@tom and

not the @roClem. 0@orts are @oor Cecause the fundamentals of the com@any are @oor. !ts

@roduct re@lacement cycles are far too lon+ for todayHs maret and it sim@ly doesnHt have the

ind of numCers to Ce aCle to offer @rices the (oreans, for eam@le, already do.

Before P3*/ can ho@e to +et its e@orts u@ to 'here it needs to Ce, it 'ill need to solve

these @roClems first. And it is unliely that it 'ill Ce aCle to do it alone. !t may have once

Ceen flush 'ith cash Cut this is no lon+er the case. A fiercely com@etitive maret at home has

made sure of that.

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*o do this, P3*/ 'ill need a @artner that can hel@ shoulder the eorCitant costs of

ee@in+ u@ 'ith the u@ seemed its Cest Cet at the time Cut it chose to reCuff the @rotracted

flirtations. /o', 2ols'a+en is Cusy 'ith its o'n marria+e to Porsche. And the rest of the

Ci+ @layers in the 'orld are also Cusy licin+ their o'n 'ounds.

Fresh from the economic crisis, P3*/ 'ill have fe'er healthy @artners to choose from

and it is itself no lon+er the e'el it once 'as. But the situation remains unchan+ed, then as

no'. ;ithout outside assistance, e@orts 'ill Ce the least of P3*/Hs concerns.

."9"2" Pr%$e,$(%&('3 p%*(,y

*hen there is the matter of @rice. !n Malaysia, P3*/ @rices are e@t com@aratively lo'er

to forei+n manufacturers throu+h @rotectionism. *his, unfortunately, is a crutch the com@any

cannot count on in forei+n marets. Protectionist @olicy has lar+ely Ceen Clamed for

P3*/ Ns sta+natin+ @erformance.

."6" $a44 a&d Ve&d%r'

P3*/Hs Mana+in+ Director, yed ;a(&a* Ab(d(&< 'as once Euoted sayin+ that )# @ercent

of defects in P3*/ cars 'ere due to@oor Euality com@onents from vendors,Cut admitted

the rest of the Clame fell on the firmHs 'orforce.

!f the mana+ement is serious in Crin+in+ the P3*/ Cac to a @rofitaCle entity, they should

run it lie a @ro@er con+lomerate and not as a charity or+aniIation, 'hich means incom@etent

vendors and vendors 'hich 'ere Cein+ overlooed, contriCutin+ hiccu@s and do'nturn of

sales @erformances and do not adhere to the standard set must Ce removed and re@laced.

!n another 'ord, if P3*/ is to tal aCout Iero>defect, Iero tolerance to'ards vendors

'ho canHt deliver must come into the @icture as a com@limentary to the cam@ai+n, other'ise

the entire eercise is +oin+ to Ce a futile effort and @uClic fund 'ill continue to Ce 'asted.

Pa+e 6 %
http://afp.google.com/article/ALeqM5hG1jo46GHdbxHG4huKHSo6PaXJFAhttp://afp.google.com/article/ALeqM5hG1jo46GHdbxHG4huKHSo6PaXJFA


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P3*/Hs Iero>defect cam@ai+n aimed at erasin+ a re@utation for @oor Euality has left it

stru++lin+ to com@ete a+ainst forei+n com@etitors. *he mana+ement had ur+ed the

em@loyees to focus on Euality control, 'hich is critical to @rofitaCility and overseas e@orts.

onsumers 'ant Euality cars and they have hi+h e@ectations.

Accordin+ to Syed Rainal, *oday, 'e 'ant to focus on reCuildin+ the com@any. *he focus is

@uttin+ P3*/ on a Cetter footin+, to im@rove Euality, @roduct and @rofit. ;e need to Ce

@re@ared to com@ete +loCally.K

*o retain a com@etitive ed+e in term of sills>set and technical no'>ho' in this industry,

P3*/ needs to ensure that their human ca@ital is continuously nurtured 'ith the ri+ht

trainin+ and tools. onsistent and relevant trainin+ is crucial to ensure that their em@loyeeshave the no'led+e and tolls to hel@ drive P3*/ for'ard.

."=" O$er'

P3*/ lacs an en+ine or @latform to e@and into the SU2 and MP2 marets, or the 7.#>

litre and aCove se+ments. P3*/ may need to collaCorate 'ith a forei+n @artner much in

the 'ay BM; and PSA Peu+eot>itroen are 'orin+ to+ether to develo@ ne' en+ines and

technolo+ies. !t is of some comfort, therefore, to learn that the Government is still 'illin+ to

consider a stron+ strate+ic forei+n @artner in the future. A tie>u@ 'ith a stron+ forei+n Crand

'ill enaCle P3*/ to @enetrate more discernin+ marets.

!n the lon+er term, many of the +reen en+ine technolo+ies that are emer+in+ as a result of

risin+ fuel @rices and +loCal 'armin+ 'ould dictate the direction of automotive develo@ment,

and these are Ceyond P3*/ ca@aCilities.

n its o'n, P3*/ has limited funds for research and develo@ment. And the Cul of its

e@orts are mostly confined to less mature marets, includin+ hina and some Gulf

oo@eration ouncil.

.">" Te C%(,e %4 De,('(%& a,ed by $e Key Per'%&

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P3*/Hs Mana+in+ Director Datu Syed Rainal ACidin Syed Mohamed *ahir, has taen a

turn for the Cetter. Syed Rainal has held the reins for some t'o years and has instituted a host

of reforms, addressin+ many of the Euality control issues, and vendor and maretin+

@roClems faced Cy P3*/ in the @ast.

P3*/Hs realiIes that stron+ customer orientation and com@etitively @riced @roducts are

the foundation of the com@anyHs Cusiness. Performance tar+ets have Ceen develo@ed to

maintain maret leadershi@, to continue to develo@ innovative @roducts, to satisfy customerHs

needs Cetter and to enhance @rofitaCility.

Primary factors that contriCuted to the resur+ence of the industry included the introduction of

ne' models at hi+hly com@etitive and consumer>friendly @rices attractive and creativefinancin+ schemes for car Cuyers as a result of a++ressive sales cam@ai+ns and a stron+

economic +ro'th of -.9- in 7##$ F3 7##8?. *o chan+e the attitude and mindset of

em@loyees, Cest @ractices are a@@licaCle via effective trainin+. U@on realisin+ the conce@t,

P3*/ @rovided trainin+ to all em@loyees to hel@ them understand the com@anyH ethical

@rinci@les and ho' those @rinci@les can hel@ them mae decisions. "uman ca@ital

develo@ment @ro+rammes Cecome more structured 'hich hel@s to stren+then com@etitive

ed+e. P3*/ had develo@ed etensive vendor @ro+rammes to ensure they adhere to the

e@ected Euality 'hich @reviously 'as overlooed. *his has led to reduction of 7 direct>

vendors, and a more structured and mana+eaCle direct>vendor net'ors.

*ain+ a loo at the latest 0oraand 'e 'ill +et a +lim@se of some of the chan+es > more

uniform @anel lines, Cetter interior @lastics and seatin+, a more res@onsive transmission, and a

more invitin+ interior, amon+ others.

" PROB/EM ANA/!I

"1" Mar5e$ O-er-(e8

nce no'n as the in+ of the road, P3*/ has seen its fortunes d'indle due to +ro'in+

com@etition from local and forei+n com@etitors as Malaysia o@ens u@ its auto maret.

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Malaysia is Southeast AsiaNs lar+est @assen+er car maret 'ith 589,5-8 vehicles sold in the

year 7##$.

MalaysiaHs auto maret is dominated Cy its national cars, P3*/ and Perodua 'hich in

year 7### accounted for maret share of rou+hly 8# @ercent of the vehicles sold annually.

Some 7- other manufacturers com@ete for the remainin+ %# @ercent. But com@are 'ith last 7

years, maret share of the national car maers has declined to rou+hly ) @ercent.

Durin+ year 7###, P3*/ conEuered ).5 @er cent maret share. !t has eroded to Celo' #

@ercent in year 7##9 and 7##$. Perodua, the second national cars manufacturer has taen

over the maret of the in+ since t'o years a+o 'ith a maret share of .) @ercent in 7##$.

P3*/ has Ceen maintainin+ their maret share 'ith Cest> cost and Croad differentiation

strate+y, althou+h the ,arket share ell ro, !0A in 2005 to "2A in 200%

alloing Perodua to oertake PR4&4) as the countr';s largest

/assenger car,aker or the 6rst ti,e$ &otal losses in 2007;s 6nancial 'ear has

cli,ed to RM1%# ,illion and this as caused ' the etensie /ro,otional

discounts ' its tight rials according to PR4&4)$

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http://www.wikicars.com/http://www.wikicars.com/


17/41

Fi+ure %: Sho' the verall maret share of @assen+er car maret. from MAA vehicle salesresources? /oted : 7##) data is not @uClished

*o date, P3*/ is facin+ severe com@etition in its home maret as +overnment may

remove rules that @rotect local car maers 'hen it revie's the >year>old auto @olicy to Coost

forei+n investment. *his reduction of the @rotection accorded to P3*/ may increase its

Pa+e 6 %9


18/41

difficulties to Cecome maret leader a+ain. Althou+h +overnment has cut im@ort taes, it still

im@oses hi+h taes on locally assemCled forei+n cars and this has +iven @rotection to national

carmaers.

&ooin+ at the industry overvie', the year 7##8 'itnesses a tremendous im@rovement in

motor vehicle sales. *his u@trend, 'hich Ce+an from the second half of 7##9, 'as a 'elcome

relief to the industry Cut unfortunately the momentum could not Ce maintained. After

recordin+ @eas of more that -#,### sales in A@ril,

friendly @rices, attractive and creative financin+ schemes for car Cuyers as a result of

a++ressive sales cam@ai+ns, and stron+ economic +ro'th of -.9- in 7##$. But a+ain, in

7##8, MAA has forecasted that there 'ould Ce a decrease of %7.7 of @assen+er cars

com@ared to 7##$. *he forecast 'as 'ell>founded on the current +loCal financial and

economic climate, reiterated Cy the contraction of GDP +ro'th. ther factors may include

fluctuatin+ oil and commodity @rices as 'ell as unfavoraCle F301 rates ref:

'''[email protected]?.

!n terms of financial @erformance, for the financial year ended % March 7##8, P3*/

recorded a loss after ta of 3M#%.$ million, althou+h there 'as im@roved revenue of

3M).- Cillion. *his decline 'as lar+ely due to the one>off ece@tional @rovision for the

im@airment of @ro@erty, @lant and eEui@ment and inventory 'rite>do'n for certain models

im@acted Cy declinin+ demand. !n addition to that, P3*/Hs financial @erformance for the

second half of the financial year 'as also adversely affected Cy the accelerated amortiIation

of dies and i+s for certain models as 'ell as hi+her commodity @rices, increased costs of

com@onents and ra' materials 'hich arose from hi+her forei+n currency echan+e rates,

@articularly the


19/41

$re&)$'

om@etitively @riced @roducts

0tensive nation'ide distriCution

net'or

Good cor@orate +overnance

!nfluence of @atriotism as Proton is

national car>maer

Government su@@ort

?ea5&e''e'

3e@utation of @oor @roduct

@erformance and functionality

"i+h cost to e@and their o@eration

Cy advanced technolo+y

Short history in automotive industry

2ulneraCle to increasin+ material

cost steel, etc?

Opp%r$#&($(e'

"i+h demand on the @roducts @@ortunity to +ro' their Cusiness

+loCally

3=D Develo@ment

Government su@@ort

After>sales services

ollaCorations 'ithin automotive

industry

Trea$'

om@etitors > local = internationalCrands

A lot of suCstitute @roducts in

maret

Fast chan+in+ and advanced

en+ineerin+ technolo+y

0conomic do'nturn O decrease of

car sales

"2"1" $re&)$

P3*/Hs stren+th lies in its com@etitively @riced @roduct. !ts etensive nation'ide

distriCution net'or hel@s the industry to move for'ard 'ith the su@@ort from Malaysian

+overnment. *he com@any also has +ood cor@orate +overnance, and hi+hly re+arded Cy

many Malaysians out of @atriotism they feel for this country as P3*/ is the national

car maer.

"2"2" ?ea5&e''e'

!ne@erience, a@@arently due to short history in car main+ certainly could not Ce an

ecuse for P3*/ to come out 'ith lo' Euality @roducts. *his could cost P3*/

very hi+h as over time, it mi+ht eo@ardiIe P3*/Hs re@utation. Poor @roduct

Pa+e 6 %8


20/41

@erformance and functionality is somethin+ that cannot Ce allo'ed to ha@@en and Euality

al'ays needs to Ce monitored and assured to the customers. ther than that, o@erational

cost and other e@enses is al'ays a challen+e to any industry and for the case of

P3*/, it is more vulneraCle to increasin+ ra' material cost such as steel @articularly.

"2"." Opp%r$#&($(e'

*he demand for cars in any se+ment is al'ays there, ece@t for more tryin+ times lie

durin+ economic crisis. *here are al'ays o@@ortunities for P3*/ to Ce a +loCal

@layer. /oCody ever say that cars should only Ce manufactured Cy


21/41

*oyota amry Altis 2ios AvanIa

;ish

4aris

"onda Accord ivic ity Stream Cased consumers.

P3*/ has al'ays Cenchmars itself a+ainst the hi+hest international standards 'hen

it comes to @assive safety. Generally, the 0uro@ean Safety Standard is used 'hen

Pa+e 6 7%


22/41

controllin+ the refinement of Euality as it is currently the most strin+ent of standards

availaCle. !t also refers to other +loCally availaCle standards such as Australian Desi+n

3ule AD3? and Saudi AraCian Standards r+anisation SAS?LGulf Standards and

ado@ts the Cest of these standards as a Cenchmar. *o ensure that com@liance is met

across the Coard, P3*/ has ensured that all safety reEuirements to Ce 7# > # more

strin+ent than the Cenchmared fi+ures as set earlier. *he test results, thus far, have

sho'n that P3*/ has not only achieved the tar+ets set Cut eceeded most of them as

'ell. *he same @ractice, too, has Celieved to Ce a@@lied to other Crand of automotives in

the local maret.

As a car manufacturer and distriCutor, P3*/ has Ceen aCle to satisfy its consumers in

@roducin+ cars that meet the minimum reEuirement at +eneric @roduct level and e@ected

@roduct level in terms of its @erformance, Euality, @rice and desi+n, 'hich allo' them to

com@ete 'ith others in the automotive maret.

""2" P%(&$' O4 D(44ere&,e @POD

Accordin+ to (eller 7##$?, @oint of difference PD? refers to attriCutes or

Cenefits that consumers stron+ly associate 'ith a Crand, @ositively evaluate, and Celieve

that they could not find the same etent 'ith a com@etitive Crand. Some mareters in the

;estern mi+ht relate PD as uniEue sellin+ @ro@osition USP?. Both of them carried

almost the same character, 'hich allo's them to Ce different from rivals in terms of

uniEueness, Euality, @rice, etc.

P3*/ stands a stron+ PD as it a@@ears to Ce the first national car manufacturer,

follo'ed Cy Perodua. *his has differentiated them from the various cars mareted in

Malaysia 'hom are solely forei+n manufacturers, ie


23/41

national car manufacturer, P3*/ enoys a certain amount of @rotection a+ainst

forei+n com@etition in the form of tariff and other non>tariff Carriers. &he higher

i,/ort dut' or oreign /assenger cars is eteen 1!0-"00 /ercent ased on

engine dis/lace,ent$ &hese /olicies hae ,assie i,/act on consu,ers

es/eciall' those ho are alue-conscious and seeking or a @ualit' and

com@act cars at an affordaCle @rice.

!t is often not an issue in enEuire aCout such P3*/ cars 'ith its distriCution channel

throu+h the nation'ide dealers. P3*/ has successfully sustained its maret @osition

throu+h the su@@ort sho'n Cy its distriCution dealers as 'ell as the vendors and su@@liers.

As mentioned in its Financial 3e@ort 7##$?, Proton is clearly committed to enhancin+

efficiencies 'ithin its distriCution net'or. !nstead of dealershi@ 'ith various @arties,

P3*/ has invested in vendor>Cased system. *he system has enaCled P3*/ to

tae care of its second tier net'or Cy virtue of tierin+ system.

*o com@ete and distin+uish itself from other in the com@etitive automotive industry,

P3*/ stron+ly associates its Crand 'ith Coth the functional @erformance>related?

considerations and aCstract ima+ery>related? considerations.

P3*/ has em@hasiIed on its commitment to'ards carin+ and Euality Cy

incor@oratin+ them in its core value and Euality @olicy. P3*/Hs Euality @olicy is to

achiee its co,,it,ent PR4&4) illB-

3nsure @ualit' as the )u,er 4ne ork ethics in all o/erationsC

3stalish an e9ectie and eDcient Eualit' S'ste, ased on the

re@uire,ents o +S4 #001B2008 standardsC

Proide ade@uate skills and knoledge to all leels o /ersonnel through

s'ste,atic and structured training /rogra,,ersC

Proide a culture and eniron,ent o continuous learning i,/roe,entand innoation toards total @ualit' ecellenceC

Proide a conducie sae and health' orking eniron,ent in hich

/eo/le like to ork and /ros/er$

9" DECIION CRITERIA

Pa+e 6 7


24/41

9"1 B#'(&e'' Pr%p%'($(%&

Based on the aCove @roClem identification and @roClem analysis, our +rou@ has come out

'ith Cusiness @ro@osition to miti+ate the @roClems identified Cy introducin+ ne' conce@t

car no'n as Proton 0ora 7. Additional ne' @roduct features for Proton 0ora 7 'ill Ce

introduced Cy a@@lyin+ ne' innovations technolo+y, increase in fuel efficiency and

environmental friendly conce@ts 'ith em@hasis on convenience and safety. ;e 'ill

e@lain further the additional features to Ce enhanced for Proton 0ora 7 under @ossiCle

solutions.

9"1"1 Obe,$(-e

*he oCective of this maretin+ @lan is to recommend a Cusiness @ro@osition

'hich is measuraCle and attainaCle Cy firstly identifyin+ ProtonHs lon+>term +oal and

short>term +oal. ProtonHs lon+>term +oal is referrin+ to ProtonHs vision and core value

'hile its short term +oal refers to ProtonHs mission to achieve the oCectives. *he

oCective of the maretin+ @lan in short term is to introduce ne' conce@t car, Proton

0ora 7 Cy early of year 7#%% Cy develo@in+ maretin+ strate+ies and @lan.

9"1"2 C%rp%ra$e V('(%& a&d C%re Va*#e

ProtonHs vision is to Cecome AsiaHs @remier automotives Crand that connects 'ith@eo@le and @rovides @roducts, 'hich Cecome life com@anions. The PROTON Wayis the

cor@orate mantra estaClished Cy Proton "oldin+s Berhad, mainly to'ards its em@loyees.

As @er annual re@ort 7##8, the em@loyees 'orin+ in P3*/ are e@ected to Ce hi+hly

dedicated to the +rou@Hs lon+>term success. 0very em@loyee shall o@erate under the

+rou@Hs shared values as +uidance in dealin+ 'ith each other and the customers. *hese

values form the foundation level of ho' the em@loyees 'or and Crin+ in Cusiness in

return. "ence, Proton emCraces *he P3*/ ;ay that consists of its ) core values 'ith

descri@tions as follo's:

30

2A&U0S

D0S3!P*!/

uality ;e mae @roducts that 'or the first time, every time.

ustomer ustomers are the source of our income. ;e deliver on our @romises to

Pa+e 6 75


25/41

focus our customersH satisfaction.

!nnovation ;e challen+e convention, al'ays seein+ ne' and Cetter 'ays of doin+

thin+s. ;e vie' chan+e as o@@ortunity.

*eam'or ;e trust, res@ect and share no'led+e to foster team'or at the

'[email protected]@eed ;e have a Jcan doK attitude and 'ill not rest until the @roClem is solved.

;e have an inherent sense of ur+ency in everythin+ 'e do.

arin+ As a res@onsiCle cor@oration citiIen, 'e invest in safety, health and the

environment.

Sources: PROTON Annual Report 2009 Protons Core Value

9"1". M(''(%&

ProtonHs mission in its short>term +oal is focusin+ on three main attriCutes that

distin+uish itself from its com@etitors as follo's :>

a E,%&%3(,a* @rovidin+ cars 'hich are affordaCle, cost efficient and value for

money

b Car(&)O @rovidin+ customer satisfaction and its social cor@orate res@onsiCility as a

truly Malaysian car manufacturer and to enhance its ustomer 3elationshi@

Mana+ement 3M?

, #a*($yO @rovidin+ a consistently im@roved @roduct and customer e@erience.

"ence, Cy introducin+ ne' conce@t car no'n as Proton 0ora 7, Proton e@ects

that it 'ill im@rove its maret share in the automotive industry and im@roves its ranin+

in future.

9"2 Tar)e$ Mar5e$

*he @rocess in identifyin+ the consumer tar+et for ne' Proton 0ora 7 is im@ortant due

to the fact that consumers tend to have different Crand no'led+e structures and thus they

'ill @erceive differently for the @roducts or services. Proton has successfully identified

their tar+et maret, accordin+ to the se+mentation Cases namely Cehavioral, demo+ra@hic

and @sycho+ra@hic factors.

Pa+e 6 7-


26/41

9"2"1 Bea-(%ra* a,$%r

Under the Cehavioral se+mentation, it is clear that P3*/ has Ceen tar+etin+

consumers 'ho came from the different Cac+round status 'ith different model of cars

res@ectively. *hey are focusin+ for consumers 'ho are Crand loyalty and Crand sou+ht. !t

'ill also Ce a +ood 'ay to Cuild u@ Crand loyalty Cy continuin+ in recommendin+

P3*/ 0ora 7 cars to others.

onsumers 'ho are loyal to P3*/ 'ill tend to acce@t the ne' car innovations Cy

P3*/ and may choose to attach themselves 'ith P3*/ Cy oinin+ the

memCershi@ cluCs to +ain more information. "ence, the ne' Proton 0ora 7 car

innovations 'ould tend to Ce acce@ted Cy consumers 'ith stron+ Crand loyalty to'ards

Proton car.

9"2"2 De3%)rap(, a,$%r

*he @otential consumers for the ne' Proton 0ora 7 can Ce tar+eted Cy analyIin+

the demo+ra@hic factors. !n the case of Proton "oldin+s Berhad Proton?, they are

focusin+ on factors such as income, a+e, se, race and family 'hen identifyin+ the tar+et

audience.

For our Cusiness @ro@osition that introduces ne' Proton 0ora 7, Proton is tar+etin+

consumers 'ho has family memCer 'ith siIe of to ) memCers at com@etitive and

affordaCle @rice. *heir a+e are ran+in+ from %$ years on'ards 'ith family siIe of to )

memCers. !n order to o'n a Proton 0ora 7, the consumers relatively have a monthly

income of 3M7,### and aCove and caters for the consumer @references for all races.

9"2". P'y,%)rap(,' 4a,$%r'

!n terms of @sycho+ra@hics factors, it may include consumersH attitude to'ards

life, careers, @ossessions, social issues or @olitical institutions (eller, 7##$? in Malaysia.

P3*/Ns entry into the local automoCile maret in %8$- has resulted in massive

structural chan+es in the automotive industry, 'hich 'as reflected in the shift of the

domestic car maret, 'hich @reviously de@ended on im@orted cars @articularly


27/41

automotives industry could influence the @urchasin+ @o'er of consumers 'ho are

@atriotic to the country Cy Cuyin+ a national car. "ence, there 'ill Ce demand for Proton

0ora 7 cars Cased on the @sycho+ra@hics factor.

Furthermore, P3*/ has not only @roduced cars for the local consumers Cut hasCroadens the automotives industry to re+ional and international. "ence, the e/ort

,arket or Proton 3ora 2 ill e a sustantial ke' or PR4&4) to achiee its

long-ter, success as a credile auto ,anuacturer$ or ea,/le Proton 3ora

has received an encoura+in+ numCer of Cooin+s at the recently concluded *hailand

!nternational Motor 0@o 7##8 in Ban+o. *he com@anyHs order Coos 'ere filled 'ith

%,$$ Cooin+s from a total of 7-,77# orders @laced at the 0@o. *he Proton 0ora,

'hich made its *hai deCut at the sho' 'as the Cest sellin+ Proton model 'ith $7-

Cooin+s, or almost )# @er cent of total orders. *herefore, 'ith enhancin+ Proton 0ora

eistin+ features Cy introducin+ ne' conce@t car called Proton 0ora 7 'ith em@hasis on

increasin+ fuel efficiency, convenience and safety at com@etitive @rice, this 'ould Coost

further Proton sales and maret shares in the maret.

!n +eneral, Proton 0ora 7 tar+et maret and maret se+mentation can Ce summariIed as

follo's:

User status Family, house'ife, retirees etc!ncome At least 3M7,### and aCove

A+e %$ on'ard

3ace All races

Family >) @eo@le

&ifestyle Medium to fairly hi+h class

9". $ra$e)y $a$e3e&$

*he strate+y statement for this maretin+ @lan is to introduce and @osition Proton

0ora 7 'ith ne' enhancement features as the @remier MP2 car in Malaysia and

international maret Cy early of year 7#%% Cy develo@in+ maretin+ strate+ies and @lan.

*he maretin+ strate+y a@@roach 'ill see to create customer a'areness on Proton 0ora

7 offered and then develo@ the customer Case. "ence, Proton 'ill communicate the ne'

Pa+e 6 79


28/41

conce@t car via its @romotion activities such as ProtonHs 'eCsites and advertisements

@laced in numerous industry ma+aIines.

9" Key P*a&&(&) A''#3p$(%&'

Based on the tar+et maret and strate+y statement for Proton 0ora 7, Proton

needs to @lan for desi+nin+ and manufacturin+ cars that can meet the @ersonality needs in

terms of desi+n, @o'er and siIe for different a+e +rou@s usin+ maretin+ strate+ic

formulation. Prior to the @lannin+ @rocess, Proton need to learns from the @ast records on

Proton 0ora @erformance, evaluatin+ the @resent condition and envisionin+ the future

maret.

*here are three @lannin+ @hases in value creation and delivery seEuence, 'hich could Ceado@ted Cy Proton in introducin+ Proton 0ora 7. *he first @hase is Cy Proton choosin+

the value Cy ado@tin+ strate+ic maretin+ via formula JSe+mentation, tar+etin+ and

@ositionin+K S*P?. !n second @hase of @rovidin+ the value, Proton 'ill determine its

s@ecific @roduct features, @rices and distriCution, 'hich the enhancement of the @roduct

features 'ill Ce discussed under @ossiCle solutions. *he third @hase is communicatin+ the

value of Proton 0ora 7 Cy utilisin+ the sales force, sales @romotion advertisin+ and other

communication tools to @romote Proton 0ora 7. *he third @hase sta+e 'ill Ce discussed

further under @romotion activities.

9"9 P%''(b*e %*#$(%&'

9"9"1 Ne8 I&&%-a$(%&' $ra$e)(e'

Additional value added features to enhance the @erformance and sales of Proton

0ora 7 'ill Ce in focusin+ on fuel efficiency, convenience and safety and em@hasiIin+

on the environment friendly vehicle.

a I&,rea'e #e* E44(,(e&,y

0istin+ Proton 0ora @rice is around 3M)8,### to 3M9-,### 'ith en+ine

ca@acity of %.) litre am@ro PS en+ine 'ith %7-h@ and %-#/m of torEue, @o'ers the

Proton 0oraeconomically. Des@ite satisfaction oCtained 'ith @erformance of am@ro

Pa+e 6 7$


29/41

PS en+ine under Proton 0ora, ho'ever, Cased on com@arison conducted for test drive

revie', Proton 0ora'ill not aCle to Ceat the /issan Grand &ivinaHs %.) litre 2*

res@onsive en+ine 'hich in terms of fuel is more efficient and economy. *his is due to the

'ei+ht of Proton 0ora is more than &ivina, althou+h Coth en+ine have same %)## cc

dis@lacement.

*herefore, in order to increase its com@etitiveness in the maret, our +rou@ has @ro@osed

for ne' innovation in fuel efficiency for ne' Proton 0ora 7 is to devote @art of its

3M-7- million 3=D to fuel efficiency increase and coo@erate 'ith Perodua on

im@rovin+ the technolo+y of fuel efficiency increase Geor+e (. haco, 7##)?. *hus,

Proton 'ill have more attractive cars Cy introducin+ ne' Proton 0ora 7 to maret via

ne' technolo+y on fuel efficiency introduced in the maret.

b Ne8 (&7,ar '%4$8are app*(,a$(%& $% red#,e ,arb%& d(%(de @CO2 e3(''(%&'

*he ne' innovation that Proton may introduced for its Proton 0ora 7 'ould Ce

soft'are a@@lication installed to reduced carCon dioide 7? emissions Cy ado@tin+

0coDrive technolo+y. 0coDrive is ne' technolo+y develo@ed 'ith Microsoft technolo+y,

'hich is the 'orldHs first device that interacts directly 'ith drivers and assist them in

chan+in+ their drivin+ haCits to reduce vehicle emissions and reduce fuel consum@tion.

0coDrive is Cuilt on Blue=Me, a Bluetooth>Cased system develo@ed ointly Cy Fiat and

Microsoft that @rovides drivers hands>free control over di+ital music @layers, moCile

tele@hones and other devices. For eam@le in Fiat cars eEui@@ed 'ith Blue=Me, the

0coDrive system assesses the driverHs drivin+ style durin+ a normal drivin+ day such as

the 'ay a driver accelerates, Craes, and shifts is automatically measured and analyIed

a+ainst the carHs fuel economy and ehaust emissions. n arrivin+ home, the driver

removes a standard USB flash drive from a USB @ort on the dashCoard or the +love

com@artment, @lu+s it into a com@uter and do'nloads information on the recent drivin+

ecursion. A soft'are a@@lication then tells the motorist ho' many ilo+rams of

emissions the car @roduced durin+ the most recent drive and @rovides recommendation

for driver to reduce those emissions Cy drivin+ in a more environmentally friendly 'ay

Cy consumin+ less fuel.

Pa+e 6 78


30/41

"ence, 'ith the introduction of 0coDrive technolo+y in Proton 0ora 7, this 'ill assist in

reducin+ the 7 emission Cy %# to 7# throu+h Cetter drivin+ haCits and @osition

Proton 0ora as environmental friendly car @roducers in Malaysia.

, C%&-e&(e&,e a&d 'a4e$y

Proton 0ora 7 could im@lement fe' innovations usin+ the latest car technolo+y

for convenience and safety as follo's :>

A#$%3a$(, Par5(&)

;ith the latest car technolo+y enaCles automatic @arin+, the system is aCle to

detect a s@ace Ci+ enou+h for vehicle to sEueeIe into a ro' of @ared cars.

Pre7',a& $e,&%*%)y

Pre>scan technolo+y sho'n Cy lasers scans the road surface Cefore the car drives

over it. *his @re@ares the sus@ension to react to the terrain accordin+ly and ensures

@eerless ride comfort. *his technolo+y 'as sho'cased in the Mercedes F9## conce@t.

C%**('(%& ?ar&(&) y'$e3:

ollision ;arnin+ system, 'hich uses radar technolo+y 'ith a 'ide>an+le search

area to detect oCects in front of and around the car. !f the car a@@roaches a @edestrian,

a red 'arnin+ li+ht comes on the 'indscreenNs head>u@ dis@lay and a 'arnin+ si+nal

sounds. *his hel@s the driver to react and in most cases avoid an accident. !f the ris

of a collision increases, assisted @anic Crain+ is activated automatically to @rovide

more @ressure 'hen the Craes are a@@lied. ;ith this technolo+y ado@ted Cy Proton

0ora 7, this 'ill reduce the numCer of accident in Malaysia. *his technolo+y has

Ceen develo@ed Cy S'edish car maer 2olvo.

Ve(,*e $% Ve(,*e Te,&%*%)y

*his hi>tech system is Cein+ develo@ed Cy General Motors and uses 'irelesstechnolo+y to allo' a driver in one car to receive information from another car further

ahead on the same road. *his system 'ould allo' the other driver to receive this

information in sufficient time to react and therefore avoid any accident. *his system

could also 'or 'ell 'ith the emer+ency services, alertin+ all drivers on the

interlined 272 technolo+y that an amCulance 'as a@@roachin+ and from 'hich side.

Pa+e 6 #


31/41

6 RECOMMENDATION IMP/EMENTATION

6"1"1 A,$(%& P*a&7 Mar5e$(&) M(e'

6"1"1"1 Pr%d#,$

P3*/ "oldin+s Berhad has commands a suCstantial maret share in terms of the

Malaysia automoCile industry, @articularly @assen+er cars. dding to the /ortolio the

latest 7-seater MPV ne conce/t 3ora 2 is introduce$

PR4&4) =ar Model Model &ag Fine Portolio G =haracteristics

3ora 2 HouIll e ,a*ed -

(erian+an (eluar+a

> Mala'sia 6rst ho,egronMPV

> +deal a,il' ehicle

From the @ossiCle solution, the ne' 0ora 7, this includes @o'erful amPro PS @o'ertrain

as 'ell as technolo+ically advanced Ci>enon headli+hts 'ith !ncrease Fuel 0fficiency, /e'

in>car soft'are a@@lication to reduce carCon dioide 7? emissions and also 'ith

im@lemented fe' innovations usin+ the latest car technolo+y for convenience and safety such

as automatic @arin+, @re>scan technolo+y, collision 'arnin+ system and vehicle to vehicle

technolo+y. omCined 'ith other luurious interior items such as leather seats and +ated +ear

shifter. *he ne' im@rovement features lie ho' to im@rove on Euality of front 'i@er sound,

aCsorCer sound and so on.

6"1"1"2 Pr(,e

Pricin+ is an im@ortant strate+ic issue for P3*/ "oldin+s Berhad Cecause it is very

much related to @roduct @ositionin+. Furthermore, @ricin+ for P3*/ car 'ill eventually

affects other maretin+ mi elements such as @roduct features, distriCution channel decisionsand the a++ressively @romotions held nation'ide. Pricin+ oCectives has Ceen set and it is

clear that P3*/ "oldin+s Berhad is marchin+ to'ards the direction of @rofit

maimiIation, looin+ at the etensive @roduct develo@ment and @roduct refreshment over

the time.

Pa+e 6 %


32/41

*he @rice of the car often determines the classification of various car models Cy P3*/.

*he @roduct @rices are seemin+ly Cecome com@etitive 'hen com@etitor manufacturer, for

instance, Produa 'ith the /e' launch MP2 AlIa in year 7##8 and *oyata 'ith its MP2

*oyota AvanIa, try to match a lo'er maret @rice to seiIe the local customer se+mentations.

Generally consumers feel that the @rices of P3*/Hs @roducts are affordaCle as com@ared

'ith other Crands in the cate+ory 'ith 'hich it com@etes. For 0ora 7, the retail @rice is

remainin+ same @rice as @revious version. *hese cost leadershi@ strate+ies 'ill stron+ im@act

to dra' customer attention.

M%de*' Pr(,e /('$

E%ra 2 r%3 RM 9="00 $% RM =9"00

Sources: PROTON website (wwwprotonco!"

6"1"1". P*a,e D('$r(b#$(%& ,a&&e*

P3*/ has 7 distriCution channels 'hich are P3*/ 0DA3 and 0/. P3*/

has reduced the numCer of outlets Cy 75 to #7 outlets as com@ared to 89 outlets in year

7##9 F3 7##$? in an eercise to reduce cost. !n +eneral, its distriCution channels are easily

accessiCle as it can Ce reached in all maor to'ns in Malaysia. P3*/ has stron+

distriCution channels, 'hich 'ill Ce advanta+es for 0ora 7 to reach the tar+et maret 'ith

effectively.

6"1"1" Pr%3%$(%&

*he 0ora 7, 'ill usin+ the eistin+ the currently 'hat P3*/ "oldin+s Berhad has

Ceen im@lementin+ !nte+rated Maretin+ ommunications !M? over the years to @romote

its res@ective car models, Ce it a ne' car develo@ment or the car refreshment. !n order to

successfully im@lement !M, several tools have Ceen used such as advertisin+, @romotion,

event maretin+ and s@onsorshi@, @uClic relations and @uClicity and lastly internet. !t is

often ha@@ened that different !M cam@ai+ns are held for different car models carried under

P3*/ "oldin+s Berhad.

I. Advertising

Pa+e 6 7
http://www.proton.com/http://www.proton.com/


33/41

P3*/ "oldin+s Berhad has used means of advertisin+, namely the @rint

advertisin+, radio advertisin+ and television commercial advertisin+. Advertisin+ has

Ceen utiliIed a++ressively Cy P3*/ 'hereCy almost every car models have its o'n

advertisement, Ce it @rint or electronic media. For instance, P3*/ 0ora has its o'n

@rint advertisement carryin+ the ta+line THouIll e ,a*ed> (erian+an (eluar+a. For

0ora 7, 'e 'ill enhance more 'ith the same ta+ line a+ain and add on additional ne'

and im@roved @roduct features.

From the conce@t of advertisement layout, the contin+ency you may find that P3*/

is @uttin+ si+nificant em@hasiIes on its car UniEue Sellin+ Pro@osition USP?. As for the

television commercial, *he 0ora 7, must successfully @ortrayed the slee desi+n and car

@erformance for the ne' im@rovement feature 'ith ne' additional features. *hat 'ill

very much hel@ on the retail car sellin+ @rice of the 0ora 7.

II. Sales Promotion

As for P3*/ "oldin+s Berhad, they have desi+ned sales @romotions from time to

time in order to ca@ture the attention of local consumers. *hese im@ressive sales

@romotions often success 'hen P3*/ uses Coth the @rice>cut and value>added ty@e

of @romotional desi+ned. For instance, P3*/ 1han+e @ro+ramme allo's the

Pa+e 6

a*e' Pr%3%$(%&' e**(&) P%(&$'

Drive for ash ash 'ill Ce +iven to the lucy>dra' of

ne' P3*/ car o'ner

P3*/ 1han+e ld P3*/ car o'ner to trade>in their

car 'ith an additional 3M-,### cash

voucher to @urchase a ne' P3*/ car


34/41

consumers to trade>in their P3*/ car 'ith additional 3M-,### to o'n a Crand ne'

of 0ora 7.

"o'ever, P3*/ "oldin+s Berhad usually en+a+ed the consumers 'ith their

customer franchise Cuildin+ @romotions lie car>testin+, demonstrations and noncustomer

franchise Cuildin+ @romotions such as @remiums. *hese @romotional items 'ill

someho' enhance the attitudes and loyalty of consumers to'ards P3*/ and

eventually 'ill affect its Crand eEuity.

III. Event Marketing and Sponsorship

As a main s@onsor in the maor s@orts event in Malaysia, P3*/ "oldin+s Berhad has

actively involved in en+a+in+ the @uClic 'ith the events they s@onsored. By Cein+ the

s@onsor for these events, P3*/ "oldin+s Berhad 'ill Ce aCle to enhance their

cor@orate ima+e dimensions. *his ste@ is a soft sell and a means to im@rove the @uClic

@erce@tions that is reliaCle, social>conscious, etc. *he consumers are e@ected to credit

P3*/ and favour it in their @urchase decision on the cars.

Pa+e 6 5

p%r$' E-e&$'

> &e *our de &an+a'i

> >year s@onsorshi@ for A%>*eam Malaysia> P3*/Hs FootCall luC to @lay in the Malaysian Su@er &ea+ue

> P3*/ Malaysia Su@er Series Badminton *ournament

> Malaysian @en Bo'lin+ ham@ionshi@

> ;orld 3ally Su@er7### in 7##$

> Formula % Se@an+ ircuit

> &otus *eam> Formula % in 7#%#

%,(a*7,a#'e' E-e&$'

> TPro+ram P!/*A3H Cy ado@tin+ 7 schools near *anun+ Malim, Pera

> P3*/ Di@loma in 0n+ineerin+ under Ministry of "i+her 0ducation

> Malaysian Sills om@etition for the AutomoCile Sector

> Malis Anu+erah (ecemerlan+an Aademi P3*/ for children of em@loyees


35/41

For 0ora 7, 'ith the current s@onsorshi@ event availaCle for P3*/ is many, that 'ill

easy to @romote for 0ora 7 'ith advertisin+ @ro+ram 'hich collaCorate 'ith ri+ht events

lie Formula % motors@orts at se@an+, A% race motors@orts, P3*/Hs FootCall luC to

@lay in the Malaysian Su@er &ea+ue, P3*/ Malaysia Su@er Series Badminton

*ournament, &e *our de &an+a'i and so on to reach the tar+et maret.

!2. Puli! Relations and Puli!ity

PuClic relations is the mana+ement function 'hich evaluates @uClic attitudes, identifies

the @olicies and @rocedures of an or+aniIation 'ith the @uClic interest, and eecutes a

@ro+ram of action and communication? to earn @uClic understandin+ and acce@tance.

*he role of @uClic relations is often relate the clients, here refers to P3*/ "oldin+s

Berhad, 'ith its +eneral @uClic, customers, stocholders, su@@liers and em@loyees. *he

tools usually involved @ress releases, @ress conferences, eclusives, intervie's,

community involvement and lastly the !nternet.

". Intera!tive # Internet Marketing

;ith the advancement in the information technolo+y, P3*/ "oldin+s Berhad

'ith its official 'eCsite, '''[email protected], has mana+ed to ca@ture the maret share.

!nteractive maretin+, @articularly, allo's a 7>'ay communications as com@ared to the

traditional forms 'hich are only one>'ay.

For the 0ora 7 cam@ai+n, customers can sim@ly lo++in+ onto the 'eCsite'''.@roton>

edar$co,$,' to do activities for searchin+, alterin+ information, inEuires and res@onses

to Euestionsand to a//l' or hire /urchase transaction 'ith PR4&4) =o,,erceIs

e-inance s'ste, are i,,ediatel' adised as to hether their a//lications

hae een reected or conditionall' a//roed suect to the su,ission o

releant su//orting docu,ents$

P3*/ "oldin+s Berhad has also inte+rated 'eC strate+ies 'ith other as@ects of !M

@ro+rams, i.e. media advertisin+. Media advertisin+ in P3*/Hs 'eCsite to the internal

advertisin+ in the 'eC @ortal, such as @o@>u@ flyer and interactive >D flash for different

Pa+e 6 -
http://www.proton.com/http://www.proton.com/


36/41

car models. *hese advertisements 'ill create a different visual e@erience to the online

vie'ers as com@ared to the conventional media.

6"1"2 I3p*e3e&$a$(%& 7 Ca3pa()& *%8,ar$Ga&$$ Car$

*he schedulin+ of the !M efforts is Cased on a Fli+htin+ Method 'hich em@loys a less

re+ular schedule 'ith intermittent @eriods of advertisin+ and non>advertisin+. At some

@hase, there 'ould Ce heavier @romotional e@enditures and at other times, there may Ce

no advertisin+ cost incurred at all. Advertisin+ may increase durin+ certain @eriods such

as F% motors@ort event in se@an+, P3*/ Malaysia Su@er Series Badminton

*ournament, Malaysian @en Bo'lin+ ham@ionshi@.

*he am@ai+n Flo' chartL Gantt chart is sho'n in A@@endi.

6"1". E-a*#a$(%&7 Mea'#re' %4 E44e,$(-e&e''

As this cam@ai+n is a short term cam@ai+n i.e. over % year, 'e are @ro@osin+ the

follo'in+ measurement L evaluation:

/o. Promotion Mi Measurement L Goals

%. Advertisin+ on television,

radio, ma+aIines,

ne's@a@ers, @oster CillCoards

*o determine the effectiveness, there is a need to

conduct a survey Cy en+a+in+ @rofessional maret

research firms such as Synovate, A /ielson, etc."o'ever, as 'e are only advertisin+ on a small scale

and each @rinted ad eclude @oster CillCoard? comes

'ith a cou@on for discount, 'e 'ill measure the

success rate Cased on the cut out cou@ons received.

7. Sales @romotion O durin+

festivities or s@ecial

occasions

Based on the numCer of s@ecial @romotional sets

sold or numCer of @atrons durin+ the event, etc.

. !nternet L !nteractive

Maretin+

*he effectiveness is Cased on the numCer of traffic

+enerated on the 'eCsite throu+hout the cam@ai+n

@eriod.

/ote :

0ffect of event s@onsorshi@ and P3 related events are hard to measure as it is intended to

Cuild a @ositive ima+e for Proton and does not insti+ate immediate res@onse to sales.

Pa+e 6 )


37/41

Aside from this Proton also conducts its o'n in house survey form as attached? to +au+e

the level of satisfaction, source of a'areness etc.

6"1" Re,%33e&da$(%&'

ur recommendations are tryin+ to address the @erformance functional

characteristics? and ima+ery symColic characteristics? issues ne+atively affectin+ overall

P3*/Hs @roduct Crand ima+e at the moment. P3*/ has sho'n many

im@rovements recently, ho'ever, it has yet to stron+ly im@rove the consumersH

@erce@tion to'ards the Crand. !t is ho@e that 'ith the aCove recommendations, it can hel@

to enhance further its effort in stren+thenin+ is Crand ima+e and values

a" I3pr%-e per4%r3a&,e

3ecommendations to im@rove @erformance 'ill Ce focused on the @roduct attriCutes and

Cenefits 'ith the aims to enhance drivin+ e@erience and Cuild Crand @ersonality. *hese

recommendations are mainly Cased on feedCacs freEuently mentioned Cy the 'eCsite

res@ondents '''.motortrader.com.my?.

( E&)(&e

Generally consumers feel that P3*/ car is under @o'er. *his is due to the en+ine

used. For a car, en+ine is the maor or critical @art of the @roduct, it is resemCle the heart

of a human Cein+. *herefore, to @roduce a car 'ith @remier Euality, @riority must Ce

+iven to its en+ine.

!n this area 'e recommend P3*/ to seriously invest in 3=D and technolo+y, and

e@edite its effort in develo@in+ strate+ic @artners to stren+then Euality, manufacturin+

and no'>ho' 'hich they are unaCle to do it themselves. P3*/ may have invested in

its technolo+y ho'ever, its efforts in this area seem insufficient. onsumers e@ect it can

@rovide a Cetter technolo+y, for instance Perodua offered its D22* en+ine, Cut P3*/

has continued usin+ its AMP3 en+ine for all the cars for decades. !n this re+ard, 'e

recommend considerin+ @artnerin+ or oint venture 'ith those re@utaCle en+ine

Pa+e 6 9
http://www.motortrader.com.my/http://www.motortrader.com.my/


38/41

manufacture, such as manufacturer from 0uro@e country BM;, MercedeI, 3enault or

Peu+eot? or


39/41

customer oriented, no'in+ 'hat the customers 'ant and offer the ran+e of colors

that a@@eal to different maret se+ment effectively.

b" %,#'ed %& er-(,e E,e**e&,e

"o'ever, havin+ all those functional and symColic characteristics 'ill not do

P3*/ Crand any +ood if it doesnHt offer ecellence after>sales service to ensure that

P3*/ continues to Ce the @referred choice for those 'ho @urchase cars from them. !t

is encoura+in+ to see P3*/ has Ceen stren+thenin+ their customer touch @oints,

es@ecially in creatin+ a more friendly a@@roach to'ards customer care Cy introducin+ its

i.are, a customer mana+ement centre totally dedicated to the needs of their customer

'hich is im@ortant in Crand Cuildin+ and earn trust from customers.

CONC/UION

P3*/ as the first Malaysian car manufacturer has estaClished a very stron+ identification in

the Malaysia automotive maret. "o'ever, the consumers @erceived that it has not delivered

'hat is @romised and e@ected. As a result, P3*/ is unaCle to create @ositive res@onse in the

head and heart of its consumers. P3*/ still has tremendous @otential and ca@acity to @erform

Cetter in offerin+ its customers @roducts and services of @remier Euality.

*he ne' conce@t of Proton MP2 0ora 7, is ho@e that the enhanced and ne' Crand ima+es and

recommendations 'ill Ce aCle to hel@ P3*/ estaClish a @ositive res@onse in the consumersH

memory 'hich 'ill lead the com@any to achieve its vision of Cecomin+ a &ife om@anion for its

consumer. *his 'ill eventually enhanced and stren+then it sources of Crand eEuity in order to

com@ete ahead.

Based on its recent @erformance, P3*/ has indeed 'orin+ very hard to live u@ its 'orin+

@hiloso@hy of @roducin+ the ri+ht car at the ri+ht time, for the ri+ht maret, at the ri+ht @rice.

Pa+e 6 8


40/41

REERENCE

%. P3*/Hs Annual 3e@ort 7##8.7. Kotler P$ and Keller K$F$ $ Marketing Manage,ent /e's>ArchiveLArticleL7##$#)5%#7)79

$

Pa+e 6 5#
http://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://news.sky.com/skynews/Home/Sky-News-Archive/Article/20080641302627http://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://news.sky.com/skynews/Home/Sky-News-Archive/Article/20080641302627


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