ENTERPRENEUR SKILL MEMO

TO: ASSOC.PROF. DR. KADZRINA ABDUL KADIR

FROM:
1. DEVANDRAN A/L NAGAPAH REDAY (827177)
2. NOOR AINUL FARAHIN BINTI ABDUL RAHIM (827326)
3. PRATHABAN A/L SUPRAMANIAM (828381)
4. NORASMAH BINTI MD YUSOF (828703)

SUBJECT: PROTON HOLDINGS BERHAD X KARTEL RECORD

SUBMISSION DATE: 10 March 2022

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A. BACKGROUND OF COMPANY (PROTON AND KARTEL RECORDS)

Our former prime minister, Tun Dr Mahathir, who had a vision to produce the first national
car, founded PROTON in 1985. Proton has laid the basis for the automotive industry's
national pride. Proton has established itself as a critical driver of national growth through
technology transfer, strategic alliances, and technological collaborations, paving the way for
the future through technology transfer, strategic alliances, and technological collaborations.
With the help of its strategic partner, Zheejiang Geely Holding Group (Geely), PROTON
continues to design and build automobiles, paving the way for Malaysia's automotive sector
to grow globally.

Kartel Records Sdn. Bhd. is a Malaysian record company that specialises in hip-hop and
R&B music. It was started in 2005 by rapper and entrepreneur Joe Flizzow, a well-known
singer in the local music market who won first place in the "Anugerah Juara Lagu" 29th
edition. Kartel Records and Warner Music Group Malaysia signed a distribution partnership
in 2008, allowing the record company to sell its artists to a wider audience. Therefore, it is no
doubt that Kartel Records is the biggest hip-hop label in Malaysia. 

It’s an undeniable fact that both local products are truly unique and brought glory to Malaysia
with their achievements. Our team had this impromptu idea of making this profitable
collaboration as we felt that both products had outstanding features and qualities. And Proton
recently launched their B-Segment SUV – X50, which had proven to be the best seller in
2020/21. It’s had given a very tough competition to Honda HR-V and we felt that the X50
would be a good choice to release a limited trendy edition with Kartel Record’s unique
design. Kartel Record previously had released KL Caps limited edition caps and Havoc
merchandises. Imagine the impact that both brands can make once their collaboration had set
off and we truly believe that this will attract buyers from both millennials and Gen Z.

B. SWOT ANALYSIS

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Explanation on SWOT analysis:

Strengths:
As a result of the team’s analysis, the main strength of Proton is that it is a Malaysian
National Automobile manufacturer with more than 30 years of experience. This provides the
organisation with a solid foundation and loyal customers. This is primarily due to their 30-
year history and the modern technology that they employ in their vehicles. Proton Car’s
second strength is that the products are value for money. Proton targeted the upper middle
class who wanted to buy a car. The cars were produced in such a way that they are occupied
with the latest technology and design, but the selling price is not over the top.

Weaknesses:
Further analysis shows that Proton lacks innovation since they don’t have a variety of product
portfolios that could compete in the global and local market. They should work more on
diversifying the product’s catalogue. Proton Cars have less demand compared to their main
competitor, Perodua, which is locally manufactured too. Perodua is rising and selling a wide
range of products at an affordable price.

Opportunities:
As a Malaysia National Automobile car, Proton has the full support of the government. To
boost the price of automobiles, the government has ruled out a 100% sales tax exemption
until June 2022.So, it is the best time for Proton to strategize their marketing plan to attract
more customers. In the era of technology, social media platforms have been one way to
market products, and most of the sales marketers are changing their direction to market
products through social media platforms. As an example, a collaboration with top influencers
and artists such as Kartel Records. It's a win-win situation for both parties: the artist can earn
money or royalties by selling their merchandise, and Proton can increase their sales and get
promoted.

Threats:
Nevertheless, Proton had a bad reputation for their past products’ quality, which were not up
to par. So, they have less demand, and when the pandemic hits, Proton’s sales drop
significantly. It is even harder for them to compete with Perodua, which is selling more
affordable and various products and foreign brands, which are, of course, equipped with high
technology. The second threat is the increase in fuel prices. Inflation is a serious problem that
the entire world is dealing with. It has the greatest impact on Asian markets, making it
impossible to boost sales. People opted to use public transport to minimise their cost of living
as the current cost of living is very expensive, especially for those who stay in cities. 

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C. TOWS MATRIX

TOWS MATRIX

INTERNAL STRENGTH INTERNAL

EXTERNAL OPPORTUNITY
O1: Sales tax exemption 100% for
local manufacturer
O2: Marketing product through
social media platform
EXTERNAL THREATS
T1: Strong competition from local
and overseas manufacturers
T2: Advancement of automobile
technology
S1: Commendable
experience of more than 30
years in the automotive
industry adds more to their
strength.
S2: Government support.
SO:
S2O1: Offering competitive
prices compared to
international branded cars
with the same features.
ST:
S2T2: offering cars
equipped with GPS system
using leveraging
government satellite.
WEAKNESSES
W1: Quality of
products is not
remarkably effective.
W2: Inability to attract
new customers and
market.
WO:
W2O2: Collaborate
with local
artist/influencer and
release a special edition
of X50 with KARTEL
designed.
WT:
W1T1: Joint venture
with foreign company
to overcome the lack of
quality.

Explanation on proposed TOWS Matrix:

(a) S2O1: Proton is a semi-private organisation managed by DRB Hicom, which has
more than 30 years of experience in the automotive industry. The media claimed that
the Malaysian government had provided financial assistance to Proton worth more
than RM13 billion since its establishment until Geely acquired 49% of Proton’s
shares. To boost the economy during a pandemic, the government is offering a full
sales tax exemption for locally-assembled (CKD) cars and 50% for fully-imported
(CBU) cars from June 15, 2020, until June 30, 2022. As a local manufacturer, 100%
sales tax saving enables Proton to offer its latest cars, the X50 and X70, cheaper than
other SUV cars in Malaysia. Proton should invest in a more aggressive marketing
campaign during the tax exemption period to boost their sales.

(b) W2O2: Proton should collaborate with local artists to establish market share and
attract new customer segments from different age groups, family members, and
classes of income. Due to its large capacity, Proton Exora is attracting customers with
many family members under middle income and above. Generation X and Millennials
have been aware of Proton, but Generation Z, born from 1996 to present day, might
opt for another foreign car brand. Local well-known singers as brand representatives
as our group proposed from Kartel Records can attract the Generation Z segment
through social media marketing campaigns on Tik Tok, Twitter, and Instagram. A

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 catchy jingle can influence consumer behaviour and make the campaign memorable.
The car design for the X50 under the collaboration campaign should be exclusive and
produced in limited quantity.

(c) S2T2: Half-owned by the Malaysian government, Proton should exploit the benefit in
terms of grabbing satellite coverage facilities owned by a government agency at
competitive prices and offering cars with the latest design and technologies, including
GPS. Due to road congestion and travel navigation, cars equipped with GPS facilities
have become essential car tools. Unique features of the car compared to other
competitors can help PROTON sustain a competitive advantage in line with market
demand.

(d) W1T1: Proton has bad perceptions among Malaysians for lack of quality compared to
imported cars. Strong competition from Perodua and foreign manufacturers will leave
Proton behind, especially during COVID 19. Thus, we propose that Proton sign a joint
venture agreement with a reputable international car manufacturer to exploit
technology for better quality cars and expand market share. Since 2017, Proton has
established a strategic partnership with Geely, focusing on new product lines like
SUVs and crossover cars. This strategic partner pulled Proton from losses for many
years. Due to high demand from the Malaysian market, which is impacted by road
congestion and price inflation, Proton should focus on joint venture projects with
other manufacturers specializing in economy cars, such as Hyundai Motor Company,
in the future.

D. BENEFITS TO:

a) PROTON

i) Proton would be attracting local buyers and increase their national sales, as a result
from their collaboration with Kartel Records. Kartel Records has a huge fanbase
and
their fans will make reservations in advance, proving their loyalty to the fanbase.
Proton will ensure this marketing strategy captures the eyes of both local and
international buyers.  
ii) Proton would be able to compete effectively with Perodua and bring innovative  
changes in their design, also be able to gain experience in the selling and servicing.
With this unique collaboration, Protons confidently gain a rather remarkable  
advantage in the market competition.  

b) KARTEL Records

 
i) Unlike their previous collaboration with Tesco on launching of their
Havoc merchandise, Kartel Records able to reach wider and bigger market with  
this Proton collaboration. 
 
ii. Kartel Records will attract more investors after launching of this  
collaboration, bringing Malaysian music industry to the next level

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E. RECOMMENDATION FROM TOWS MATRIX

i) S2T2: Producing car with latest design and innovative technology.

Today is the era of technology, so customers want to have a model that has advanced
technology such as the Global Positioning System (GPS), system navigator, and smart
parking, for example, automatic reverse parking and side parking.

ii) W2O2: Collaborate with local artist or influencer to attract new customers, improve
sales, and gain market share.

For Example: Shopee’s Super Shopping Day 2021 promo campaign was different
from previous years. Because, two international action actors, namely Jackie Chan and Joe
Taslim, had appointed as the stars of the promo program ad. Both actors are already known
to the public for having dazzling martial arts skills in every film they star in. Similarly, we
can look at the same market approach and hire local celebrities/influencers to work on this
campaign. We believe that this collaboration/marketing strategies can increase the sales  
dramatically
.

APPENDIXES: POWERPOINT SLIDES

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