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CMGB 6101 MARKETING MANAGEMENT THE ZANYTHREE Impossible Yet Possible We provide marketing solutions for your business needs Product : PROTON EXORA 2 Halisah Ashari Teh Chye Beng Linda Sim Siew Kian CGA 080108 CGA 080035 CGA 080016
Presentation Outlines 1. INTRODUCTION – COMPANY BACKGROUND 2. PROBLEM IDENTIFICATION 3. THE CHOICE OF DECISION FACED BY THE KEY PERSON 4. PROBLEM ANALYSIS - SWOT ANALYSIS - COMPETITOR ANALYSIS - POINTS OF PARITY AND POINTS OF DIFFERENCE 5. DECISION CRITERIA & PROBLEM SOLUTIONS 6. ACTION PLAN- MARRKETING MIX 7. IMPLEMENTATION- CAMPAIGN ACTIVITIES CHARTS 8. RECOMMENDATION 9. CONCLUSION REFERENCES
BACKGROUND ØPerusahaan Otomobil Nasional Berhad or PROTON ØIncorporated on May 7 1983 to manufacture, assemble and sell motor vehicles and related products (accessories, spare parts and other components) ØProduced Malaysia’s first car : Proton SAGA ØOther model products : WAJA, SATRIA, Gti, WIRA, ISWARA, ARENA, PERDANA V 6 , JUARA and EXORA
PROBLEM IDENTIFICATION AND ANALYSIS 1. Controversies • Malpractices of approved permits (APs) • Entry of foreign cars at below-cost prices • 20 -year protectionist policy 2. Business Model • Cost structure and product – make products that people want and in a cost-efficient way
PROBLEM IDENTIFICATION AND ANALYSIS 3. Quality Control • Poor quality • Unimpressive design 4. Policy • Export policy • Protectionism policy 5. Product Defects • Staff (workforce) • Vendors
PROBLEM IDENTIFICATION AND ANALYSIS 6. Economic Factors • Dwindling fortunes • Deregulated market • Growing competition from local and foreign competitors • Global financial and economic climate / shaken consumer confidence from threat of global economic slowdown • Fluctuating oil and commodity prices • Unfavorable FOREX rates • The ever increasing cost of manufacturing and raw materials • Over-crowded operating environment
PROBLEM IDENTIFICATION AND ANALYSIS 7. Others • Lacks an engine or platform to expand into the SUV and MPV markets, or the 2. 0 -litre and above segments • Green engine technologies that are emerging as a result of rising fuel prices and global warming • Limited funds for research and development • Bulk of its exports are mostly confined to less mature markets
CHOICE DECISIONS BY KEY PERSON ØQuality control - extensive vendor programmes, "zerodefect", zero tolerance ØVendors - a more structured and manageable directvendor networks ØMarketing - strong customer orientation ØIntroduction of new models at highly competitive and consumer-friendly prices ØHighly competitive and consumer-friendly prices ØAttractive and creative financing schemes for car buyers
CHOICE DECISIONS BY KEY PERSON ØPerformance targets - to maintain market leadership, to continue to develop innovative products, to satisfy customer’s needs better and to enhance profitability ØBest practices via effective training to change the attitude and mindset of employees ØChanges in auto policy to boost foreign investment ØCollaboration with a foreign partner to develop new engines and technologies ØA 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 OPPORTUNITIES • High demand on the products • Opportunity to grow their business globally • R&D Development • Government support • After-sales services • Collaborations within automotive industry 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) 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 Luxury Executive Family MPV Compact Proton - Perdana Waja Exora Savvy Toyota Camry Altis Vios Avanza Yaris Category Wish 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 Ø Business Proposition • New concept car : Proton Exora 2 with additional product features by applying new innovation technology. Objective : • • a) b) c) 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 : - Economical – providing cars which are affordable, cost efficient and value for money Caring – providing customer satisfaction and social corporate responsibility as a truly Malaysian car manufacturer and to enhance Customer Relationship Management (CRM) Quality – providing a consistently improved product and customer experience
Target Market Proton has successfully identified their target market, according to the segmentation : Ø 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. Ø 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 RM 2, 000 and above and caters for consumer preferences for all races. Ø 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 Ø 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 Ø Three phases in value creation and delivery : q Choosing the value - by adopting strategic marketing via formula “Segmentation, Targeting and Positioning” (STP). q Providing the value - specific product features, prices and distribution. q Communicating the value - Utilising the sales force, sales promotion advertising and other communication tools.
Possible Solutions ØNew Innovations Strategies q. Increase Fuel Efficiency Devote part of its RM 525 million R&D to fuel efficiency increase and cooperate with Perodua on improving the technology of fuel efficiency increase (George K. Chacko, 2006). q. New in-car software application to reduce carbon dioxide (CO 2) emissions • Eco. Drive 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.
ØConvenience and safety q Automatic Parking The system is able to detect a space big enough for vehicle to squeeze into a row of parked cars. q 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. q 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 q 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 Ø Product PROTON Car Model Tag Line Exora 2 You’ll be Amazed Keriangan Keluarga Portfolio / - Characteristics Malaysia first homegrown MPV Ideal family vehicle New Features : New Features -Increase Fuel Efficiency, -New in-car software application to reduce carbon dioxide (CO 2) 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 Ø Price- same price as previous version Models Exora 2 Price List From RM 57, 998. 00 to RM 75, 548. 00 Ø Place/ Distribution Channels - PROTON EDAR and EON, have 302 outlets Ø Promotion - IMC
ELEMENTS OF IMC 1)Drive for Cash 2)PROTON XChange -PROTON Commerce’s e. Finance -for searching, altering information, inquires and responses -media advertising -Press releases, -Press conferences, -Exclusives, -Interviews, -Community involvement SP INT MKT IMC A&P EXORA 2 PR Spon’s -Print advertising, -Radio advertising - Television commercial advertising -Le Tour de Langkawi - A 1 -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
CAMPAIGN ACTIVITIES Activities – 2011 TV Radio Magazines Newspapers Printed Collaterals Outdoor Sales Promotion Interactive /Internet Public Relations J F M A M J J A S O N D
EVALUATION Promotional Mix Measurement / Goals Advertising on TV, radio, Conduct a survey and the cut selected magazines and, out coupons received newspapers, poster billboards, etc Printed collaterals Presentation of leaflets for the redemption of gifts Sales promotion – Luck Draw and XChange Programe No. of special promotional sets sold or number of patrons during that event. Internet / Interactive Marketing No. of traffic /clicks n the website throughout the campaign period
RECOMMENDATION • To address the performance (functional characteristics) and imagery (symbolic characteristics) a ) Improve performance will be focused on the product attributes i) Engine – Under Power - invest in R&D and technology, - strategic partners to strengthen quality ii) Interior Design- Poor, less aesthetics iii) Body Frame – Not strong enough, Light, Invest R&D iv) Exterior Design - Shape , Color b) Focused on Service Excellence - excellence after-sales service
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. protonedar. 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 CO 2 emissions. Accessed on March 22, 2010 from http: //www. microsoft. eu/Stories/Viewer/tabid/77/article. Type/Article. View/a rticle. Id/330/Menu/8/A-new-in-car-software-application-helps-driversreduce-CO 2 -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