Integrated Marketing (IMKTC)

Contents
Executive Summary ...................................................................................................................................... 2
Strength ..................................................................................................................................................... 3
Weakness .................................................................................................................................................. 3
Opportunities............................................................................................................................................. 3
Threats ...................................................................................................................................................... 4
COMPETITORS ANALYSIS ...................................................................................................................... 5
IMC Objectives & Justification .................................................................................................................... 7
Segmentation, Targeting & Postioning ......................................................................................................... 8
Unique Selling Proposition ........................................................................................................................... 9
Strategy & Justification............................................................................................................................... 10
IMC Tools ................................................................................................................................................... 12
Media Schedule & Budgeting ..................................................................................................................... 14
Justification ................................................................................................................................................. 15
References ................................................................................................................................................... 16
Integrated Marketing (IMKTC)

Executive Summary
Proton is the First Malaysia automobile company that was founded in 1981, it was formed under
the National Car Project. It is also a public listed company which is under Bursa Malaysia. In
the year 2020 Proton will be releasing the new Proton X50. Which is a compact SUV compared
to the X70 a SUV by itself.

As the Senior Manager for the Marketing and Sales department of Proton Edar Malaysia,
the goal of this is to ensure the new Proton X50 will be recognize by the general public mainly the
T20 and the M40 of Malaysia citizens. Objective here is to ensure the marketing strategy reaches
out to the public so that sales can be done and measure on how effective can marketing through
the usage of the IMC Tools and Elements of IMC. Followed by the objective of ensuring the public
supports national products.

The Proposition is to inform and make sure the public knows that Proton is a high end
brand car with cheap pricing and its features are up-to-date with their current competitors.
Integrated Marketing (IMKTC)

S.W.O.T Analysis

Strength
Their main strength within the nation would consist of them being the national car brand known
to Malaysians and within the ASEAN region for 36-years. The pricing of Proton cars is also made
affordable in terms of priced price products. The brand is also supported by the government hence
having a nationwide distribution channel. Proton Quality Management Excellence Award
(QMEA) due to reaching their annual sales of RM100 Million (Salang, 2018). Proton is included
in the ASEAN Economic Community (AEC) hence having ties with the ASEAN markets making
their market size wider (Pitsuwan, et al., 2017).

Weakness
Their value for money of a product also comes with a backlash such as, their poor product and
service quality. Gunasegaram (2010), Due to two of these poor subjects, it’s making the public
look at the company negatively. Proton lacks perception and expertise in terms of advance
technology in the automotive engineering side (Salang, 2018). (Gunasegaram, 2010)Hence, the
reason they have to collaborate with partners internationally who are experts in these field. Such
as Mazda, Japan or Hyundai, Korea. Their poor technological advancement may be bad in the long
run, for their reputation as the national car is at hand.

Opportunities
Salang, (2018), Proton would be able to produce half a million cars annually if they were to utilize
the manufacturing plant in Tanjung Malim, Perak. In addition, this will provide more room for
them to escalate the career growth within Proton themselves through the development of human
resource. Their collaboration with Geely will also expand their research and development (R&D).
This expansion will expose Proton towards Swedish technologies allowing them to tap into a new
market segment worth 1.4 billion in China (DRB-HICOM, 2019). Their strongest suit also
involves Proton being supported by the Government. For example, according to Mahalingam,
(2019) more than RM15 Billion was injected to Proton by the Government.
Integrated Marketing (IMKTC)

Threats
According to Tong & Lim (2014), one of threats that’s faced by proton includes their economical
integration in the ASEAN economics. For the sales for the automobile companies had skyrocketed
throughout the year of 2010 and Thailand had the biggest domestic market followed by Indonesia.
Therefore sales for Malaysia had difficiculty to face throughout the year. Mahalingam (2018),
mentioned that Proton entry to the China market will lead to the reliance of their domestic market.
This is due to the fact that Geely who had bought 49.9% of Proton stake made better sales in the
year 2017 proving that they are prominent in the automotive industry. Hence, Proton is unable to
expand too quickly in order to manage the domestic market and their manufacturing facilities.
Integrated Marketing (IMKTC)

COMPETITORS ANALYSIS
Their competitor includes the second national car maker which is Perodua. The competition
between the two of them had made the market close to its saturation peak. Further growth fully
depends on the overseas markets. Which is where Perodua has the upper hand as for Proton has
failed in that area as they failed in establishing a firm platform (Tong & Lim, 2014).

Figure 1: Market Share of automobiles in Malaysia (Drebee, et al., 2014).

Figure 2: Sales Volume of Perodua Cars in Malaysia (in 1,000s Units) (Statista, Inc., 2019).
Integrated Marketing (IMKTC)

Figure 3: Market Trend of Sales (Focus2move, 2019).

Zainul (2019), Mentioned that Proton might have boosted their sales through their lauch of the
new Proton Saga and the X70. However, Perodua still manage to maitain the lead in market share
value thrroughout the year. Based on Figure 2, it shows that the statement supports the figure in
terms of Perodua being one of the main competitors of Proton through the domestic point of view.

Perodua has an international recognition similar to Proton and they are known to produce cars such
as Viva, Alza, and Bezza. It is also the largest ASEAN car passenger market and they are evolving
to be a national project whereby they link up with automakers which are strong and known
globally. This is through the help of their own recognition and the direct involvement of the
Malaysian Government followed by the numerous amount pf customer demands throughout the
ASEAN region (Reza & Farooq, 2018).

They are the second car manufacturer in Malaysia and yet they pose a threat (domestically) to
Proton who is the main car manufacturer in Malaysia. They are known for their minicars, however
the past few years they have started to overlay one another especially when it comes to Myvi.
Integrated Marketing (IMKTC)

IMC Objectives & Justification

The objective of this IMC is to create an awareness of the new and upcoming Proton X50 since
there was a success in the sales of the recent Proton X70 due to the advertisement and several
satisfied customers of their First AWD/SUV. Within the year of 2020 it is expected that Proton
X50 is to be the car that boost the sales of Proton as they did with the previous X70. Since the car
is expected to be cheaper that other car brands such as Toyota and Honda.

Awareness of Proton has increase due to its previous sales of the X70, remarkable
statement and feedbacks were given by the buyers of the Proton X70 and customers are looking
forward to the new Proton X50. To be more specific, the X50 is going to be cheaper, within the
margin of RM75,000 to RM95,000 range which is cheaper compared to their competitor compact
SUV (Huong & Wong, 2019).

Supporting the statement above in regard to awareness, Aziz (2019), mention what was
relevant to the awarness mentioned above. Since the new upcoming Proton X50 is based on the
Geely Binyue, it was spotted by many on Malaysian roads that customers are using the particular
car triggering a word of mouth regarding the entry of the car’s model. This was also reported by
several media about the presence of the Geely Binuye.

Furthermore, the general product interest must also be prompted by us in terms of

increasing the knowledge of X50 to the customers. By doing so we can plant interest in them by
laying out the specs for the new Proton X50 before its launch date. This can all be written and
broadcasted through advertisements.

Solomon (2014), Metioned that buying a vehicle comes along with a complex process
which involves the decision of the cosumer or customer highly. It involves the perspective of them
as well as the information analyzed by them. The evaluation on how good the product is, is based
on the degree of involvement they have with the product. The purchasing decision is also comes
from the cognitive purchase decision.
Integrated Marketing (IMKTC)

Segmentation, Targeting & Postioning

The segmentation of the market that will be chosen for this IMC is Undifferentiated Marketing
and Differentiated Marketing. For Undifferentiated marketing sets aside the differences and the
offers the entire market a single product. This would be the normal standard product being offered
to the general public where an average consumer will be able to purchase the product at the lowest
price possible. By doing so Proton will be able to attain more customers in such of wanting to have
the X50 as a vehicle. Being said, the car’s sporty design Proton also targets those aging from 20
and above being young adults and working adults as it would reflect their own image as an
individual.

As mentioned by Camilleri (2018), the current day and age customers are being more
demanding and it would be hard for a company to cater all of their demands, hence providing a
single product for the entire segment. Therefore, having a single want and needs.

However, for the above average consumer, Proton will be targeting a number of them
within the segments. For the differentiated marketing target those who wants to be a little more
special compared to the general public. Hence, Proton will be carrying out a thorough market
research on what specialty would suit the average consumer the most. For, this will determine the
significant margins when going with differentiated marketing.

Camilleri (2018), also mentioned that, it is important to decide how to satisfy a selected
segment of the market. Proceeding with this marketing strategy would definitely cost more than
the undifferentiated market therefore research within the market has to be done in order to save
cost and fulfill the needs on a base where it can meet the market wants.
Integrated Marketing (IMKTC)

Unique Selling Proposition

In advertising, the concept of Unique Selling Proposition (USP) generally emphasizes on the info
or message a company needs to show to their consumers that they have a distinct quality compared
to their competitors or other brands. By doing so, they would be able to persuade and convince
consumer to patronize it.

Supporting my statement above Belch & Belch (2004), Mentioned that propostion has to
be made towards the customer through the act of each advertisement. Each advertisement has to
reach out to the buyer knowing that they will receive a certain benefit if they were to buiy the
product of a specific brand. The propostion has to be one that a competitor cant or do not offer
hence, it being unique. It must also have an impact towards the customer decision making, in order
to gain new customer to the brand.

The Unique Selling Proposition (USP) of the upcoming Proton X50 would definietly be
the brand itself and the price. For as it was stated by Huong & Wong (2019), compared to other
SUV’s that the competitors such as Honda has to offer, the X50 will be cheaper. Therefore, by
postioning as the cheapest and the first national car brand, it will act as a foundation for a successful
creative strategy.

The previous sales of the X70 can also be a trigger to peek the iterest of the consumer. For,
it was one of the major boosters for the sales of the year 2019 for Proton. Kana (2020), stated that
Proton has a estimated market share of 16.7%, which is supposedly to be the highest since the year
2014. The sales of December 2019 was also the highest for the whole span of 2019 growing by
112% and X70 was one of the best selling models and contributed to the sales growth of last year.

This will act as an inherent drama annoucing to the public that the Proton X70 now has a
younger brother since the X50 is a compact SUV copared to the X70. By stating this it will
generally present to the consumer in a warm emotional and realistic way.
Integrated Marketing (IMKTC)

Strategy & Justification

There are two kind of promotional appeal one which is Rational/Informational appeal and the other
is Emotional Appeal. Respectively both segments target the market differently, such as through
fact, learnings and logic and the other is through social and psychological needs.

The more informative and could possibly help resolve the conflict of consumption choices
would be the Rational appeal (Rossiter & Percy, 1987). Consumer’s practical, utilitarian or
functional needs for the product or service are being focus on when Rational advertising appeal is
being used. it emphasizes on the features of the products and its services and the benefit of using
the particular product. It underlines the logics and facts of learning and persuasion (Belch & Belch,
2012).

Emotional appeal relates back to the social and psychological needs for purchasing a
product for the customers. Numerous amount if feelings and needs can be searved as a basis for
the appeal of them ads in order to influence the consumer on an emotional level.

As metioned by Belch and Belch (2012), a handful of customers motives of purchasing a

product comes from their emotional and their feeling of a product. Their knowledge of the product
comes second. For, it will enhance their emotional need and fulfill their status psychologically.
Emotional appeal can sometimes be out of personal reasons such as love, joy, or safety. Some can
even be social based in terms of recognition, status or respect.

So for the new upcoming Proton X50 we will be combining both Rational and Emotional
appeals. This allows the customers to choose the purchase the vehicle based on price and quality
of the product as well as recognition, joy, and safety. This can be done by applying both elements
in the ads itself.
Integrated Marketing (IMKTC)

Never Dull Your Shine

For Others….
RM 75,000.00 RM 108,800.00

174 Hp 141 Hp

Figure 4: Poster of Proton X50

Through the given promotional poster, an execution technique of comparrison is applied. Through
this poster customers can differentiate the two cars on its price value for a simillar product since
the product is being placed side-by-side to one of their competitors. This form of direct comparison
is critical for we have to intrigued the thoughts of the customers as for price is one of the most
important decision factor when buying a product. Futhermore, with only the Proton X50 being the
only coloured one customers will be more attracted to it compared to the Honda HR-V.

As mentioned by Kotler & Keller (2016), The preception of price affects a consumers
purchasing decision greatly. It is impose on products that are purchased frequently and in turn.
Consumers also tends to get very rational when purchasing a product of their choice and in high
price.

Through the poster a form Straight-Sell or Factual message is being presented to the
customers. This is observed based on the pricing and one of its specification which is the Hp (Horse
Power). Hence with the price included in the poster customers will and knowing the specs customer
will be pulled by the the overall criteria of the product.
Integrated Marketing (IMKTC)

IMC Tools
Integrated Marketing Communication (IMC) tools are practically tools thar helps delivers
messages acroos through different platform or media to different target audience. Such act is being
done in order to increase awareness and to build up brands. Kotler & Keller (2006), mentioned
that advertising, sales, direct marketing, promotion, sponsorship and personal selling are the most
significant tools even though there are more than just six menthods. It alligns all the connectivity
with the customers to one point transfering information to them. An approach that ensures brand
personality are derived from a unique strategy.

The IMC tools that is most suitable for Proton X50 currently is advertising, Direct
Marketing, Sales Promotion, and Public Relation. This is because the knowledge of the car is
already out there as for people are expecting the car to be released by by the third quarter of 2020.
Therefore a more aggressive approach needs to be taken to intrigue the interest of the public.

Advertising, at this point is a very crucial chess piece that’s need to be used to gain the
attention of the market. It is a mass-marketing communication tool that attract a big number of
crowd. It requires all the promotional elements hence, being the most essential IMC step. The main
goal is to create or increase the awareness of the product, provide information and features, and
most importantly distiguish itself from its competitors. This includes Print, broadcast, digital or
any place that’s can be sponsors are willing to chip in. For Example, McDonalds began introducing
and advertising agressively their beef burgers such as quarter pounder in a sexy way gaining
customers repeatitively (Mujtaba, 2007).

Followed by Direct Marketing where it allows businesses to directly communicate with

customers through a variety of media platforms such as E-Newsletter, websites, online pop-up ads,
catalogues, promotional letters, specific televisions. It creates a one-to-one relationship with
customers for its not a non-personal marketing method. By using this method responses and
inquiries reagarding the Proton X50 can be generated with positive results. For example, a mail of
1,000 about the Proton X50 is sent out and with confidence, we will receive 100 response hence
contributing to 10% of the direct response towards the promotion. They can also reach out to
previous buyers of the Proton X70 with ease gainig the market segments withing particular areas.
Integrated Marketing (IMKTC)

Another form of tool that would help out with Proton X50 launch is Sales Promotion. The
types of promotion available would include consumer oriented and trade oriented. For this we will
be focusing on Consumer oriented to easily penatrate the market through a pull strategy in order
to create demand. It consist of promotional activities which supplement activities such as
advertising. For a short term run promotion and exhibition will be hosted to pull the market in, in
short to no end with the short stick against the competitors. This will trigger and generate purchase
behaviours or the consumer effectively during a short-term inducement.

Lastly would include personal selling. Its an important tool that provides two-way
communication with potentetial buyers of the Proton X50. Staffs can develop an understanding
therefore understanding the customer wants and needs in term of the customers preference.
Personal selling is an interactive method to gain advantage on a niche market segment. Personal
selling is also important for it can be applied on all the other marketing tool. It will utillize all the
maketing tools to its maximum capacity when staffs comes in contact with a customer or when a
customer contacts the Proton for enquiries. Representetive from the sales department are also
expected to generate the demand of the customers for the X50.
Integrated Marketing (IMKTC)

Media Schedule & Budgeting

A total of RM 2,000,000.00 is allocated for the budgeting and below is the breakdown in detail:
Television : RM 60,000.00
Billboards : RM 400,000.00
Radio : RM 40,000.00
Newspaper : RM 50,000.00
Magazines : RM 80,000.00
Public Relations : RM 500,000.00
Promotions : RM 300,000.00
Social Media : RM 100,000.00

Total : RM 1,530,000.00
Integrated Marketing (IMKTC)

Justification
To justify the product promotion budget will be focused mostly on those months that are included as a
festive month. For sales and promotional events during festive season increases the number of customers
gain by a company due to the need of changing. Mentioned by Aithal (2018), Festive sales contribute
tremendously on sales growth. Marketing retailers promote their products during festival.

If the plan were to be presented aspects such as the IMC tools used, and Promotional execution
technique used will be affective for its used by the general companies around us. For Example, companies
such as Walmart uses billboard to advertise new product that their store have to offer, and they manage to
pull in more customers. This doesn’t only include the billboard however, it includes those other
advertisement such as sales promotion as well (Walmart, 2019).

Figure 5: Arbitron National In-Car Study (Williams, 2009)

Integrated Marketing (IMKTC)

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