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POLYCARP DANSON AK SIGAI 750705135101001
TUTOR MR. KERON MAPUS PUSAT WILAYAH SARAWAK SEPTEMBER 2009
.«««««««««««« 1.4 3.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 Table of Contents Introduction««««««««««. Strategies««««««««««««««««««««««««.«««««««««««««««««««««.««««««««««««««««««««« Product Development««««««««««««««« Product Refreshment«««««««««««««««.... Conclusion«««««««««««««««««««««««««««««««.0 2. Price««««««««««««««««««««««« Promotion.5. Marketing Mix..BBPM 2203 . Proton Differentiates«««««««««««««««««««.3 3. The Main Objectives of Proton««««««««««««««««««.6 Product.5.2 3.5.5 Positioning««. Marketing Objectives of Proton«««««««««««««««««« 3.2 3.3 3. Success and Failure Analysis«««««««««««««««. 16 References««««««««««««««««««««««««««.««««.1 3.1 3.«««««««««««««««««««« 2 3 4 4 5 7 8 8 10 10 11 12 13 14 15 Critical Issues/Challenges««««««««««««««««.0 3.«««««««««««««««««««««« 188.8.131.52 The Concept of Marketing««««««««««««««««««««.4 3. 17 POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 1 .3 3.
Proton Savvy (2005). is listed on the Bursa Malaysia. Proton Iswara (1992) Proton Waja (2001). Tun Dr. Proton principal activities are the manufacture. Proton Persona (2007). Proton BLM (2007) and Proton Exora (2009). Proton Satria GTi (1994). Based on technology and parts from Mitsubishi Motors. Proton Hold ings Berhad. the holding company of Proton. Proton has a unique ability to understand people¶s needs and provide the right product with efficient service and genuine quality.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 INTRODUCTION Proton was established in 1983 under the direction of the former Prime Minister. a brand that connects with people and provides products which become life companions. production of the first model. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 2 . Proton Putra (1995). Perdana V6 (1998). Proton Tiara (1996). They build cars with care for passenger safety and genuine quality in order to provide high durability and lifelong companionship. Proton Wira (1993). the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam. Gen-2 (2004). assembly. Proton vision is to become Asia¶s premier automotive brand. Selangor. Initially the components of the car were entirely manufactured by Mitsubishi but slowly local parts were being used as technol ogies were transferred and skills were gained.BBPM 2203 . Proton Juara (2001). Mahathir Mohamad. Operations are carried out in Malaysia. Arena (2002). The company has 140 sales outlets and 37 services branches and 113 services outlets across Malaysia. trade and provision of engineering and other services in respect of motor vehicles and related products. Proton product are Proton Saga (1985).
POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 3 . The Concept of Marketing Marketing is the process of planning and executing the conception. II. The key to achieving the two objectives is the idea of exchange or the trading of things of value between buyer and seller. goods and services to create exchanges that satisfy individual and organizational objectives.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 1. promotion. I. to assess the needs and wants of prospective customer To satisfy them. and distribution of ideas. The purpose and objective of marketing are. Pricing. Strong customer-orientation and competitively-priced products are the foundation of protons business and are essential to the company¶s success. Marketing seeks. This definition stresses the importance of benef icial exchanges that satisfy objectives of both those who buy and those who sell goods and services.BBPM 2203 .
3. Proton wants numbers and customer wants better improved cars. while Proton Edar being the sole marketing arm and distributor. the quality production and quality deliveries of proton cars to the customer may be affected when the quantitative sales tar get is mixed with qualitative deliveries. The Main Objectives of Proton Proton is Malaysia¶s national car manufacturing company. Current promotions efforts to sell Proton products are : y Current Mission of Proton: To strive towards excellence in all aspects of our operations. Marketing objectives of Proton Proton target market is to meet the satisfaction level of target market.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 2. y Our Proposed Mission statement for Proton: Quality and luxury cars at an affordable price y Current vision: Being customer¶s no 1 choice in automobile product and services POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 4 . As both the manufacturer as well as the distribution arm of Proton cars.BBPM 2203 .
which launched early 2001. Customer satisfaction is a key element where various initiatives are being or will be rolled out to make the experience of own ing a proton car. The new Proton logo features a stylized tiger head. More than 220. they aims to maintain market leadership by continuing to develop innovative products and through satisfying its customers in a more profitable way than its competitors. featuring a crescent and a fourteen -pointed star. The Proton Waja (Proton Impian in UK). Positioning helps us to establish our products or services identity within the eyes of the customer. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 5 .1 POSITIONING. as well as by its competitor¶s actions.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 3. Positioning is how we differentiate our products or services from our competitors and then determine which market niche to fill .BBPM 2203 . Until the end of the 1990s. intended for higher end market. was first produced in 1995. the Proton car's logo featured the crest from Malaysia's coat of arms.000 units were sold between 1996 and 1998. a model called Proton Wira was introduced based on the Mitsubishi Lancer/Colt. based on the Mitsubishi Galant/Eterna. is the first car model designed internally by Proton. Strong customer-orientation and competitively-priced products are the foundation of protons business and are essential to the company¶s success. A company's positioning strategy is affected by a number of variables related to customer' s motivations and requirements. Proton Perdana. In 1993. As for Proton.
The new Proton Saga replacement model (codename Proton BLM) was launched on 18 January 2008. Both the Gen -2 and Savvy. The Gen -2 is the first of cars to be manufactured and assembled at the new manufacturing plant in Tanjung Malim. The new Saga is based on the Savvy platform. fuel -efficient hybrid car to beat rising costs and address environmental concerns. in 2007. Proton has gained an additional source of engineering and automotive expertise. Proton has produced 3 million cars since 1985. Persona. However these joint -venture talks were unsuccessful and MG Rover subsequently collapsed. but using Campro 1.3L instead of Renault engine. Perak which is part of Proton City development project. the Proton Savvy.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 By 2002 Proton car sale was almost of over 60% in Malaysia. Later. In 2005 Proton introduced the second model to be manufactured in Tanjung Malim. where the 3 millionth cars is a second-generation Saga. 2008 that Proton is developing a new.200 cc 5-door supermini. The plant was opened in 2004. But. which was reduced by 2005 and in 2008 when AFTA mandates reduce import tariffs to a maximum of 5%. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 6 . As of 3 August 2008. were models that MG Rover was looking to rebadged when the British firm entered into collaboration talks with Proton.BBPM 2203 . Proton launches its new sedan as replacement version for Wira Sedan but with new name. the 1. This led to the production of Prot on Gen-2 which was code name Wira Replacement Model (WRM) before the launch. It was announced on August 8.
MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 Proton.BBPM 2203 . The Proton cars brand has been sold over not only in Malaysia but internationally. 3.2 STRATEGIES. The pricing strategy must reflect the benefit offered and the promotion strategy must communicate this benefit. Proton is also involved in financial services and property management in POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 7 . Developing a positioning strategy depends much on how competitors position themselves. has successfully positioned themselves as the family value model. distribution and after -sales services. The positive comments from the industry and attributes of this vehicle is has changed the perception of consumers about the Proton brand. Proton has been re-positioned as a vehicle which had negative brand associations. Proton commands a substantial share of the domestic market for passenger cars and over the years has been building up distribution networks in key market centers across the four regions: South-East Asia Middle East United Kingdom / Western Europe Australasia The main business activities of the Proton then encompass vehicle engineering. to one which regularly wins car of the year awards. It¶s offering a benefit which is superior depends much on the marketing mix strategy the organisation adopts. research & development. manufacturing.
Proton has emerged as the only full fledged car manufacturer in the country. led to the demise of manufacturers. 1985 marked a momentous year in Malaysia¶s history ± it was the year in which the country¶s first national car was born.000 units. Proton designs and produces cars for diverse consumer preferences. Proton would not have either share of market or share of heart. 3. Proton concepts are to ensure that they meet smart personality needs in terms of design. Malaysia¶s output capacity has now reached 700. of which his company and fellow national Perodua account for 500. According to Mahaleel Ariff. Differentiates. so Proton can be the right companion for life. chief executive of state owned Proton. However.4 SUCCESS AND FAILURE ANALYSIS Malaysia has become a hotbed of production activity in recent years thanks to a raft of new assembly licenses granted to international manufacturers. It is an integral part of their business and their brand. Today. is the act of designing a set of meaningful differences to distinguish the company's offering from competitor's offerings. without which. and like Japanese and South Korean models before them.000 units.BBPM 2203 .408 units in 2005 to POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 8 . Proton cars proved popular among budget -oriented motorists. production fell from 563. 3.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 supporting the main business activities.3 PROTON DIFFERENTIATES. power and size for different age groups.
on the other hand. claiming 32% of the market from sales of 155. Proton has been particularly hard hit.733 units. In terms of total sales for all segments. Perodua again made its mark. leadership of the passeng er market shifted for the first time ever from national manufacturer Proton to local rival Perodua in 2006. against the Japanese brand¶s 5. competitor is Toyota Motor Corporation. with the double -edged sword of long -standing government protection militating against efficiency. boosting its market share from 32% in 2005.538 units or 32% of the market. After that. Despite increasing numbers of carmakers launching production activities i n Malaysia. Perodua. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 9 .5%. The overseas brands saw their combined share of the passenger market fall slightly from 23% in 2005 to 22% in 2006. with the two firms combined market share declining.706 units. while Proton trailed with 24% from sales of 115. based on existing manufacturers and brands in the country. In 2006.BBPM 2203 . Another that. A bloated workforce and a lack of new models h ave not helped the firm. to 42%. falling behind Perodua. The market scores 5 out of 10. Toyota¶s share of the total market is double that of its passenger car share with 16.048 units in 2006. the company lost leadership of the market for the first time. The competitive position of st ate-owned carmakers Proton and Perodua has remained a key focus for the Malaysian automobile industry in recent years. The competitive environment category measures the opportunity for new market entrants. to 115. some major manufacturers are still absent leaving opportunity for extra competition.419 units.4%. to 152.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 503.7% with Honda pipped for fourth place by local firm Naza on 6. increased its sales by 14%. as the domestic giant¶s sales fell by 30%.
The company has 140 sales outlets and 37 service branches and 113 service outlets across Malaysia. as well as an emphasis on small.1 Product The importance of ensuring Proton we have a strong product portfolio is all the more crucial as it has a pivotal impact on their turnaround plans.5 MARKETING MIX 3. 3. with the latter powered by the new CamPro IAFM engine during the year un der review and suffice to note. more expensive Proton offerings. Th is strategy was reflected in Proton newly introduced Persona and Saga models. However.. Kia Motors Corporation and Toyota Astra Motor PT.A. Mazda Motor Corporation. Shenyang Brilliance Automotive Company Ltd. for the right market. at the right price and at the right time¶. It outsold Proton in the domestic market both in 2006 and 2007. Finally that. its subcompacts do not directly compete wi th larger. Hyundai Motor Company Ltd. These two models are performing tremendously well in the market to date. Isuzu Motors Ltd. Mitsubishi Motors Corporation..MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 Honda Motor Company Ltd. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 10 .. This is reinforced by their winning strategy of introducing µthe right car. allowed it to overtake Proton in passenger-car sales in 2006.. Daewoo-FSO Motor S..BBPM 2203 . Yuejin Motor Group Corporation. Perodua¶s successful tie -up with Japanese manufacturers. fuel-efficient vehicles.5.
the desirable sporty Satria Neo and the µ2008 Best Model of the Year¶ winner. further solidifying their product line-up to include a high quality multi -purpose vehicle that can cater to the family-oriented contemporary lifestyle. the world -renowned Lotus sports cars. which was launched in 2009. Exige. and the economical Savvy re designed to give better value proposition to the buyers of the Savvy Lite. Proton. the proven Saga range. Europa and the recently unveiled Exora.2. By harnessing the right technology and keeping their finger on the pulse of customers¶ requirements. with their new look and powerful CamPro CPS engine.BBPM 2203 . the Persona. To sustain this positive momentum. Proton has continued to update and refresh their existing product lines to entice and attract customers. the fun -to-drive Savvy. 3. will has launching their first MPV in early 2009.2. Esprit. Staying on course. Proton has continued their research and development (R&D) efforts and comprehensive market surveys to gain a deeper understanding of the needs of their customer base. The re-energised Waja and Gen. the versatile Arena. with models such as Elise. Proton also has in its portfolio.2 Product Development Proton models includes the reliable family -sedan Waja. the elegant Perdana V6. Other exciting offerings are also in the pipeline with replacements for the Waja and iconic Perdana on the drawing board. have successfully managed to excite car consumers in Malaysia during the year under review. the stylish Gen. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 11 .5. to suit a range of customer demands and preferences. Proton truly believe that this will bring us closer to achieving their goals of a dynamic product portfolio.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 Furthermore.
With robust product planning. stamping. distribution and after -sales services. testing. colour and alloy rims. casting. Through Lotus. the Group provides comprehensive and versatile consultancy services to many of the world¶s OEMs and Tier 1 suppliers.BBPM 2203 . body kit. Proton also upgraded parts POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 12 . machining and assembly to marketing. the Gen.5. design. They aim to maintain market leadership by continuing to develop innovative products and satisfy their customer¶s needs better and enhance profitability.000 employees who are involved in the whole value chain of the business.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 Proton conducts research in its center in Malaysia and the United Kingdom on new technologies to create cars that are unique in both design and driving performance. Currently.3 Product Refreshments Gen. the proton has almost 12. As a result of the exterior face -lift. from research. marked by the successful launch of the Persona in August 2007. they were able to introduce both new and improved Proton cars in the year under review.2 was done in tandem with the initiation of the Persona project to take advantage of cost sharing given that both projects share similarities in terms of their interior design.2 The face-lift of Gen. development. Exora in 2009.2 now features a new bumper. followed closely by the unveiling of the new Saga in January 2008 and their first MPV. Strong customer orientation and competitively priced products are the foundation of their business and essential to their success. 3.
Current price is approximately Rm25k-125k depending on the models.027. the refreshed Gen.0(A) RM106.50.888. PERDANA V6 2.00.6L SOCH (Manual) RM59. SATRIA 1. Proton is readjust the pricing for specific models and make more flexible installment planning to encourage customer to Proton cars.320. P roton is applying a longer intake manifold to achieve slower air flow. The prices of the Proton cars are still the lowest price among the imported cars.3GLi SE (Metallic) RM42.096.114.6 DOCH Auto (Metallic) RM58.455.5GL (Metallic) RM47.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 of the exterior and interior of the car based on customer ¶s feedback while introducing the much-anticipated CamPro CPS powertrain. The engine¶s Variable Intake Manifold (VIM) switch alternates between a long intake manifold at low engine speeds and a short intake manifold at higher engine speeds. With extra power.4 Price Now-a-days people more concern about money. 3. WIRA 1.5. ISWARA Aeroback 1. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 13 . as this system has been found to promote better mixing of fuel. The short intake manifold will allow more air to enter faster and be especially beneficial to engines at high Revolutions Per Minute (RPMs).500. WAJA 1.BBPM 2203 .3S-LMST (Metallic) RM38. Proton car prices. GEN-2 1.97.2 is set to become a highly competitive model in the sporty C-segment automotive category.60. WIRA 1.5GLi SE Aeroback (Metallic) RM50.94. better handling and improved quality.81.12.
the Proton successfully penetrated into China and Thailand.88% for 7 years and 3.5. Towards this end. Naturally.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 Interest Rate is 3.5 Promotion The year under review saw Proton aggressively augmenting the International Sales & Services Division with additional human resources. In terms of market expansion. there was also a marked increase in the frequency of visits by both the sales and technical teams to the various countries in which P roton has POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 14 . which is crucial to their success in the Middle East. 2 years standard manufacturing warranty plus 3 years Extended Warranty. which are expected to contribute positively towards the new financial year¶s export volume growth Proton¶s technical support and after-sales service capabilities must be of high standards in order to further enhance P roton¶s brand equity in the international market. At the same time. Also known as PROTON STAR. this investment reflects the importance of the export market in P roton¶s long-term growth. while expanding their reach in Iran. focusing primarily on technical support as well as after-sales and customer services.BBPM 2203 . The year also saw the implementation of a special programmed for semi knocked-down (SKD) and completely knocked-down (CKD) exports to Iran and China. 3. During the year. these campaigns included customer-focused initiatives ranging from a 43-point check to discounts for spare parts. several µService Campaigns¶ were held during the year under review in our key export markets. the Middle East and Indonesia.99% for 9 years. these campaigns are ideal platforms to bring Proton closer to the international customer base. Clearly. Proton re-energised the Saudi Arabian market.99% for 9 years. Interest Rate is 3.88% for 7 years and 3.
Proton rising inflation and high crude prices won¶t hurt car sales because most of the models have 1. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 15 . what they want are and put maximum efforts to satisfy those needs by learning from past mistakes. including China and some Gulf Cooperation Council. Therefore I suggest that Proton to improve the quality. Perform Q. 3. But how many foreign stakeholders would be willing to invest the money in Proton to develop new infrastructure and facilities and share their latest technology without being given a substantial or controlling stake in the car maker? That is a matter for the Government to ponder on when the time comes. A tie -up with a strong foreign brand will enable Proton to penetrate more discerning markets.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 presence. Proton just needs to know who its customers. provide all the necessary facilities and equipment for the employee. to enhance their understanding of the markets and provide better response to the customers.C tests and Position the Product in the appropriate Market segment by crating Brand Image.6 CRITICAL ISSUES/ CHALLENGES On its own. Malaysia¶s Pride. It has a much potential high market in both domestic and internationally. Actively participate in all the Environmental.BBPM 2203 .6-liter or smaller engines. It is expected to generate great revenue for the government but it¶s unable to make this achievement due to low qualit y management of their automobiles. Proton is a government subsidized company. Proton has limited funds for research and development. And the bulk of its exports are mostly confined to less mature markets. Health and Safety (EHS) programmers.
Gen. but over the years we have also been building distribution networks in key market cent er across the four regions of South East Asia. The imperative factor for success lies in the people and the products. Custome r satisfaction and lifelong relationships stay at the heart of our organisation. Proton¶s current lineup includes the Saga. the Middle East. in other words if they target comparatively average income consumers and make it a affordable product-then they must design and provide facilities needed by that group of consumers and reaching the product to them efficiently. Satria GTi. Arena (Jumbuck). United Kingdom/Western Europe and Australia. Waja.2. Persona and Proton very latest. Proton should position their products in the appropriate target market with a new marketing mix.MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 Therefore. Proton¶s core values of Companionship are in the areas of placing customers first. Proton has emerged as the only full-fledged car manufacturer in the country. the Exora. where Proton has become a hit with many car buyers. Iswara. Wira. Satria. Proton not only commands a substantial share of the domestic market for passenger cars. Juara. Savvy. POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 16 . Satria Neo. P roton employs a brand philosophy that spells out Companionship. CONLUSION Today.BBPM 2203 . 7. even before profits. Perdana. Putra.
BBC News. 01st December. [online].BBPM 2203 .strategy marketing Carl McDaniel. [online]. introduction to Marketing ( 9th edition). http://en. 11 November 2007.cfm?NewsID=23260 ANNUAL REPORT PROTON 2008 http://www.proton. p. Rain Stockton.bbc.pdf List of Proton car models. Pearson Prentice Hall.articlesbase.com/public/media/mediacentre/documents/annualreports/AReport _2008.uk/1/hi/world/asia -pacific/7089707.2005.stm Proton dealer does well in Kuwait.com/automotivearticles/protons-shares-increase-as-its-deal-with-volkswagen-near-conclusion188723.dailyexpress. [online].MARKETING MANAGEMENT II POLYCARP DANSON AK SIGAI 750705135101001 REFERENCES Philip Kotler.wikipedia.org/wiki/List_of_Proton_car_models POLYCARP DANSON AK SIGAI ± 750705135101001 ± BBPM2203 17 .my/news.Lamb and F. 2003. Gary Armstrong. ³Principles of Marketing´.html Robin Brant. 11th edition. available: http://news.proton.com/public/media/mediacentre/documents/annualreports/AReport _2008_5. New Jersey. available: http://www.com.(2008). ChAerles W.Thomos South -Western Financial Statement 2008 annual report http://www.Hair. eyes Iraqi mart. Malaysia firm's 'Muslim car' plan.co. DAILY EXPRESS NEWS.pdf Chapter 2. Jr. 26-07-2007. available: http://www. Proton's Shares Increase as Its Deal with Volkswagen near Conclusion.
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