CMGB6101 MARKETING MANAGEMENT

Halisah Ashari CGA080108Teh Chye BengCGA080035Linda Sim Siew Kian CGA080016

THE ZANYTHREE

Impossible Yet PossibleWe provide marketing solutions for your business needs

Product : PROTON EXORA 2

Presentation OutlinesPresentation Outlines

1. INTRODUCTION – COMPANY BACKGROUND2. PROBLEM IDENTIFICATION 3. THE CHOICE OF DECISION FACED BY THE

KEY PERSON4. PROBLEM ANALYSIS

- SWOT ANALYSIS- COMPETITOR ANALYSIS- POINTS OF PARITY AND POINTS OF DIFFERENCE

5. DECISION CRITERIA & PROBLEM SOLUTIONS6. ACTION PLAN- MARRKETING MIX 7. IMPLEMENTATION- CAMPAIGN ACTIVITIES

CHARTS8. RECOMMENDATION 9. CONCLUSION

REFERENCES

BACKGROUND

Perusahaan Otomobil Nasional Berhad or PROTON

Incorporated on May 7 1983 to manufacture, assemble and sell motor vehicles and related products (accessories, spare parts and other components)

Produced Malaysia’s first car : Proton SAGA Other model products : WAJA, SATRIA, Gti,

WIRA, ISWARA, ARENA, PERDANA V6 ,JUARA and EXORA

PROBLEM IDENTIFICATION AND ANALYSIS

PROBLEM IDENTIFICATION AND ANALYSIS

PROBLEM IDENTIFICATION AND ANALYSIS

PROBLEM IDENTIFICATION AND ANALYSIS

CHOICE DECISIONS BY KEY PERSONQuality control - extensive vendor programmes,

"zero-defect", zero tolerance Vendors - a more structured and manageable

direct-vendor networks Marketing - strong customer orientation Introduction of new models at highly competitive

and consumer-friendly pricesHighly competitive and consumer-friendly pricesAttractive and creative financing schemes for car

buyers

CHOICE DECISIONS BY KEY PERSONPerformance targets - to maintain market

leadership, to continue to develop innovative products, to satisfy customer’s needs better and to enhance profitability

Best practices via effective training to change the attitude and mindset of employees

Changes in auto policy to boost foreign investment

Collaboration with a foreign partner to develop new engines and technologies

A tie-up with a strong foreign brand will enable PROTON to penetrate more discerning markets

SWOT ANALYSIS STRENGTHS

•Competitively priced products•Extensive nationwide distribution network•Good corporate governance•Influence of patriotism as Proton is national car-maker•Government support

WEAKNESSES

•Reputation of poor product performance and functionality•High cost to expand their operation by advanced technology•Short history in automotive industry•Vulnerable to increasing material cost (steel, etc)

OPPORTUNITIES

•High demand on the products •Opportunity to grow their business globally•R&D Development •Government support•After-sales services•Collaborations within automotive industry

THREATS

•Competitors - local & international brands •A lot of substitute products in market•Fast changing and advanced engineering technology•Economic downturn – decrease of car sales

COMPETITOR ANALYSIS

CategoryLuxury Executive Family MPV Compact

Proton - Perdana Waja Exora Savvy

Toyota Camry Altis Vios Avanza

Wish

Yaris

Honda Accord Civic City Stream Jazz

POINTS OF PARITY AND POINTS OF DIFFERENCE

POINTS OF PARITY (POP) POINTS OF DIFFERENCE (POD)

Keller (2008) POP - not necessarily uniquely attached to one brand but may in fact be shared with other brands•competitive market leader in the local automotive industry with its different car design accommodating to different target market•benchmarks itself against the highest international standards when it comes to passive safety•satisfy its consumers in producing cars that meet the minimum requirement at generic product level and expected product level in terms of its performance, quality, price and design, which allow them to compete with others in the automotive market

Keller (2008), (POD) -attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find the same extent with a competitive brand•the first national car manufacturer•relatively low car selling price•protection against foreign competition in the form of tariff and other non-tariff barriers•committed to enhancing efficiencies within its distribution network

Decision Criteria & Possible Solutions

Business Proposition • New concept car : Proton Exora 2 with additional product

features by applying new innovation technology.

Objective :• Long term goal : Corporate Vision and Core Value

Proton’s vision is to become Asia’s premier automotives brand that connects with people and provides products which become life companions.

• Short term goal : Proton’s mission is focusing on three main attributes :-

a) Economical – providing cars which are affordable, cost efficient and value for money

b) Caring – providing customer satisfaction and social corporate responsibility as a truly Malaysian car manufacturer and to enhance Customer Relationship Management (CRM)

c) Quality – providing a consistently improved product and customer experience

Target Market

Proton has successfully identified their target market, according to the segmentation :

Behavioral Factor Targeting consumers who came from the different background status with different model of cars respectively. Focusing for consumers who are brand loyalty and brand sought.

Demographic Factor Proton is targeting consumers who has family member

with size of 3 to 6 members at competitive and affordable price. Their age are ranging from 18 years onwards with a monthly income of RM2,000 and above and caters for consumer preferences for all races.

Psychographics factors Influence the purchasing power of consumers who are patriotic to the country by buying a national car.

• Target market and market segmentation can be summarized as follows:

Strategy Statement The strategy statement for this marketing plan is to

introduce and position Proton Exora 2 with new enhancement features as the premier MPV car in Malaysia and international market by early of year 2011.

Key Planning Assumptions Three phases in value creation and delivery :-Choosing the value - by adopting strategic

marketing via formula “Segmentation, Targeting and Positioning” (STP).

Providing the value - specific product features, prices and distribution.

Communicating the value - Utilising the sales force, sales promotion advertising and other communication tools.

Possible Solutions

New Innovations Strategies Increase Fuel Efficiency Devote part of its RM525 million R&D to fuel

efficiency increase and cooperate with Perodua on improving the technology of fuel efficiency increase (George K. Chacko, 2006).

New in-car software application to reduce carbon dioxide (CO2) emissions

• EcoDrive is new technology developed with Microsoft technology, built on Blue&Me, a Bluetooth-based system technology that interacts directly with drivers and assist them in changing their driving habits to reduce vehicle emissions and reduce fuel consumption.

Convenience and safetyAutomatic Parking The system is able to detect a space big enough for

vehicle to squeeze into a row of parked cars.

 Pre-scan technology Pre-scan technology shown by lasers scans the road

surface before the car drives over it. This prepares the suspension to react to the terrain accordingly and ensures peerless ride comfort.

Collision Warning System: Collision Warning system which uses radar

technology with a wide-angle search area to detect objects in front of and around the car

Vehicle to Vehicle Technology Allow a driver in one car to receive information from another car further ahead on the same road in sufficient time to react and therefore avoid any accident.

ACTION PLAN- MARKETING MIXES

Product

PROTON Car

Model

Model Tag

Line

Portfolio /

Characteristics

Exora 2You’ll be Amazed - Keriangan Keluarga

- Malaysia first homegrown MPV

- Ideal family vehicle

New Features New Features : -Increase Fuel Efficiency, -New in-car software application to reduce carbon dioxide (CO2) emissions- The latest car technology for convenience and safety i) automatic parking, pre-scan technology, ii) collision warning system iii) vehicle to vehicle technology

ACTION PLAN- MARKETING MIXES

Price- same price as previous version

Models Price List

Exora 2From RM 57,998.00 to RM

75,548.00 Place/ Distribution Channels

- PROTON EDAR and EON, have 302 outlets Promotion

- IMC

ELEMENTS OF IMCELEMENTS OF IMC

A & PINT MKT

SP

PR Spon’s

1)Drive for Cash2)PROTON XChange

-Le Tour de Langkawi

- A1-Team Malaysia- PROTON’s

Football Club to play in the

Malaysian Super League

- PROTON Malaysia Super Series

Badminton Tournament

-Malaysian Open Bowling

- Formula 1 Sepang Circuit

-Press releases, -Press conferences,-Exclusives,-Interviews,-Community involvement

-Print advertising, -Radio advertising - Television commercial advertising

-PROTON Commerce’s e-Finance -for searching, altering information, inquires and responses-media advertising

EXORA 2

CAMPAIGN ACTIVITIESActivities – 2011

J F M A M J J A S O N D

TV

Radio

Magazines

Newspapers

Printed Collaterals

Outdoor

Sales Promotion

Interactive /Internet

Public Relations

EVALUATIONEVALUATION

RECOMMENDATIONRECOMMENDATION

CONCLUSION

• PROTON as the first Malaysian car manufacturer • Established a very strong identification in the

Malaysia• Consumers perceived that it has not delivered what

is promised and expected• Has tremendous potential and capacity to perform

better in offering its customers products and service of premier quality with competitive price

• Enhanced and new brand images to help PROTON establish a positive response in the consumers’ memory

• To achieve vision of becoming a Life Companion of its consumers

References• PROTON’s Annual Report 2009.• Kotler, P. and Keller, K.L. (2009). Marketing Management (pp 53,

77-84) New Jersey: Pearson Prentice Hall• PROTON’s official homepage. (www.proton.com) & (www.proton-

edar.com.my)• The Star, Wednesday 21,2007, Many Issues Still for Proton to

Address.• The Malaysian Insider, Sunday, March 28 2010, Low Export Not

Proton’s Real Problem• The Malay Mail, The Problem with Proton, by editor Leow Ju-Len,

June 12, 2009.• A new in-car software application helps drivers reduce CO2

emissions. Accessed on March 22, 2010 from 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.aspx.

• Quirk, J. (2008, January 28). Car Technology: The Latest Innovations In Engine Development And Safety. Sky Motoring. Accessed on March 27, 2010 from http://news.sky.com/skynews/Home/Sky-News-Archive/Article/20080641302627