- Information
- AI Chat
Proton&Perodua - Proton and Perodua
Principles and Practice of Marketing Mix (MKT420)
Universiti Teknologi MARA
Preview text
UNIVERSITI TEKNOLOGI MARA PERLIS BRANCH
FACULTY OF BUSINESS MANAGEMENT
BACHELOR OF BUSINESS ADMINISTRATION (FINANCE) (HONS)
PRINCIPLES AND PRACTICE OF MARKETING
(MKT 420)
INDIVIDUAL PROJECT 1
(PROTON vs. PERODUA)
PREPARED FOR:
MADAM IMA ILYANI BT. DATO’ HJ. IBRAHIM
PREPARED BY:
MUHAMMAD NORSYAHIDDIN BIN SUAIDI 2019554591
GROUP:
RBA242-2A
TABLE OF CONTENT
PART A: COMPANY BACKGROUND
Company Background Company mission statement The analysis on current business portfolio The possible developing strategies on current business portfolio
3 - 9
PART B: PRODUCT
The level of product Product / service offering classification Individual product and service decisions Product line and product mix decisions Branding strategy
10 – 13
PART C: PRICE
General Pricing Approaches Product Mix Pricing Strategies Price Adjustment Strategies
14 – 17
PART D: PLACE
Number of channel levels Strategy used for its marketing intermediaries Types of retailer/wholesaler that carry their products/services
18
PART E: PROMOTION
Concise analysis on their advertising strategy with example Concise analysis on their sales promotion strategy with example
19
REFERENCES 20
Mission
Proton’s mission is to continuously create innovative process, product and, service
that win people’s heart and minds. They focused on the main three (3) attributes
which is economical, caring, and quality.
(a) Economical - providing cars which are affordable, cost efficient and valuable.
(b) Caring – gives customer a high satisfaction and its social corporate
responsibility as Malaysian car manufacturer.
(c) Quality – Consistently improve and enhance the product.
Vision
“A Leading Globally Mobility Solutions Provider”
Proton’s vision is to become a successful Malaysian automotive engineering and
manufacturing company globally by being oriented and producing competitive priced
and innovative products that satisfy its customer.
COMPANY BACKGROUND
PERODUA
Perusahaan Otomobil Kedua Sendirian Berhad (Second Automobile
Manufacturer Private Limited), abbreviated to Perodua , is Malaysia's largest car
manufacturer, closely followed by Proton. It was established in 1992 and launched its
first car, the Perodua Kancil, in August 1994. 3 'M2' refers to the codename which was
used when the project to establish Perodua was still top secret.
Initially Perodua mainly produced minicars and superminis, and did not have models
in the same market segments as Proton. In recent years, however, its targeted
market segments have started to overlap with Proton's – especially in the
supercompact segment.
Perodua does neither design nor engineer its main components, such as engines
and transmissions, in house. The cars have historically used Daihatsu component
designs. Daihatsu held a 20% stake in Perodua at the company's launch, increasing
this to 25% in 2001 and then to 35%. In 2004 Perodua started assembling
the Daihatsu Xenia at its plant in Rawang, for sale in Malaysia.
Perodua sold more than 207,100 vehicles in 2016, which was its highest-ever yearly
sales record, and achieved a highest-ever market share of 35%. 4 The company is
planning to set up a second car manufacturing plant with a planned $770 million
investment in the coming years.
COMPANY MISSION STATEMENT
Mission
3 World of Cars 2006·2007. Warsaw, Poland: Media Connecion Sp. z o. 2006. p. 203 4 Perodua in 2016 – 207,100 vehicles sold; highest ever market share with 35% of TIV; 6% growth in exports - htp:paultan/2017/01/17/perodua-in-2016-207100-vehicles-sold-highest-ever-market-share-with-35-7- of-iv-6-growth-in-exports/
Vehicle Sales Performance and Company Market Share in Malaysia, First-Half 2019
(H1 2019) versus First-Half 2018 (H1 2018)
Brand Total Sales Market Shares H1 2019 H1 2018 Diferent H1 2019 H1 2018 Perodua 121782 117098 3% 41% 40% Honda 44260 51354 -16% 14% 17% Proton 43518 27106 37% 14% 9% Toyota 31251 31709 -1% 10% 10% Nissan 10383 11926 -14% 3% 4% Mazda 6491 6696 -3% 2% 2% Mercedes 5649 6950 -23% 1% 2% BMW 5035 5340 -6% 1% 1% Mitsubishi 4236 4561 -7% 1% 1% Isuzu 4137 4689 -13% 1% 1% Ford 2874 3072 -6% 0% 1% Hino 2744 2510 8% 0% 0% Volkswagen 2633 3344 -27% 0% 1% Kia 2242 2352 -4% 0% 0% Subaru 1335 2318 -73% 0% 0% Hyundai 1166 1704 -46% 0% 0% Peugoet 1024 1168 -14% 0% 0% Volvo 920 573 37% 0% 0% Fuso 878 1096 -24% 0% 0% Renault 589 416 29% 0% 0% Daihatsu 586 349 40% 0% 0% MINI 575 551 4% 0% 0% Sinotruck 308 389 -26% 0% 0% Lexus 272 425 -36% 0% 0% Scania 234 300 -22% 0% 0% Volvo Trucks 194 207 -6% 0% 0% CAM 183 161 13% 0% 0% UD Trucks 177 326 -45% 0% 0% Land Rover 107 72 48% 0% 0% Porsche 100 196 -48% 0% 0% Bison 83 68 22% 0% 0% Chana 62 30 106% 0% 0% Auman 37 26 42% 0% 0% CAMC 36 70 -48% 0% 0% Bei Ben 36 19 89% 0% 0% Tata 33 12 175% 0% 0% MAN 31 93 -66% 0% 0% King Long 29 65 -55% 0% 0% JMC 25 17 47% 0% 0% JAC 24 11 118% 0% 0% Jaguar 9 20 -55% 0% 0%
Chevrolet 3 164 -98% 0% 0% TOTAL 296291 289553 2% 100% 100%
41%
14%
14%
10%
3%
2%
1%
1%
0.97%0.93%0.89%1% 1% 0.20%0.35%0% 0% 0.09%0.76%0.31%0.45%0.30%0.39%0.20%0% 0% 0% 0% 0% 0% 0.03%0% 0% 0% 0% 0.01%0% 0.01%0.01%0.01%0.00%0%
Car Manufacturer's Market Share for the irst half of 2019
Perodua Honda Proton Toyota Nissan Mazda Mercedes BMW Mitsubishi Isuzu Ford Hino Volkswagen Kia Subaru Hyundai Peugoet Volvo Fuso Renault Daihatsu MINI Sinotruck Lexus Scania Volvo Trucks CAM UD Trucks Land Rover Porsche Bison Chana Auman CAMC Bei Ben Tata MAN King Long JMC JAC Jaguar Chevrolet
BCG Matrix (Boston Consulting Group)
Product is defined as anything that can be offered market for attention, acquisition,
use or consumption that might satisfy a want or need of a person. Products are key
element in overall market offering.
The Level of Product
The Three Product Levels model by Philip Kotler provides a way to understand the
different level of needs a customer has for product. It is worth noting that, according
to Kotler, the definition of a product goes far beyond offering a simple product or
service. It includes anything that can be offered to the marketplace to:
Capture attention
Acquire customers
Satisfy a need or want
Kotler proposed examining each product as though it were actually three separate
products – the core benefit, the actual product, and the augmented product.
1) Core Benefit
The core benefit is the fundamental need that the customer satisfies when they
buy the product. The core product is the benefit of the product that makes
it valuable to the customer. For example, the core benefit of a mobile phone is to
provide a mechanism to make telephone calls when away from your home or
office. Note that products are rarely marketed using the core product. This is
because core products offer no competitive advantage.
2) Actual Product
The actual product is the product features and its design. Products typically have
lots of features but very few actual benefits (core benefits) to the customer.
Returning to our mobile phone example, then the actual product consists of the
design and features of the phone (dimension, colour, screen size, packaging,
etc.)
3) Augmented Product
The augmented product is the non-physical part of the product. It usually consists
of lots of added value, for which you may or may not pay a premium. Typically,
the augmented product includes such things as warranty and customer service.
Product and Service Classification
Products and services fall into broad classes based on the types of consumers who
use them: consumer products and industrial products. Broadly defined, products also
include other marketable entities such as experiences, organizations, persons,
places, and ideas.
Automobile such as cars were classified as shopping products under consumer
products. Shopping products are the type of products which purchased less
frequently and careful comparison is made by the customer on the price, quality,
sustainability and style. In case of purchase of shopping products, increased time &
effort is made by the customers in collection of information & comparison making.
Following are some of examples of shopping products.
Product Line
Products/Services
Consumer Products/Services
- Convience Products
- Shopping Products
- Speciality Products
- Unsought Products
Industrial Products/Services
- Raw Materials
- Fabricaing Parts and Materials
- Installaion
- Accessory Equipment
- Operaing Supplies
PRICE
Perodua Axia
(A-segment hatchback)
Perodua Bezza
(A-segment sedan)
Perodua Myvi
(B-segment hatchback)
Perodua Alza
(B-segment mini-MPV)
Perodua Aruz
(C-segment SUV)
Price is the amount of money charged for a product or service. More broadly, price is
the sum of all the values that customers give up to gain the benefits of having or
using a product or service. Price is the only element in marketing mix that produces
revenue while other elements represent costs. Price is also one of the most flexible
marketing mix elements.
General Pricing Approaches
The price the company charges will fall somewhere between one that is too low to
produce a profit and one that is too high to high to produce any demand.
In setting its price between these two extremes, the company must consider several
external and internal factors, including competitors’ strategies and prices, the overall
marketing strategy and mix, and the nature of the market and demand. There are
three main approaches:
Cost-based pricing , where price is determined by adding a profit element on
top of the cost of making the product.
Customer-based pricing , where prices are determined by what a firm
believes customers will be prepared to pay.
Competitor-based pricing , where competitor prices are the main influence
on the price set.
As most of the automobile manufacturers, cost-based pricing is the most appropriate
approaches in determining the price of the product. Cost-based pricing involves
setting prices based on the costs of producing, distribution, and selling the product
plus the fair rate of return for the company’s effort and risk. A company’s costs take
two forms which is fixed costs and variable costs. Fixed costs (overhead costs) are
costs that do not vary with production or sales level. For example, rent, utility bills,
heat, interest, and executive salaries regardless of the company’s level of output.
Opposite to fixed costs, variable costs vary directly with the level of production.
Although these costs tend to be the same for each unit produced, they are called
variable costs because the total varies with the number of units produced.
PROTON CAR MODEL PRICE
MODEL VARIANT PRICE MONTHLY PAYMENT
Perodua Axia
1 Standard E - MT RM 22,990 RM 251 1 Standard G - MT RM 32,590 RM 357 1 Standard G - AT RM 34,390 RM 376 1 SE - MT RM 35,590 RM 390 1 SE - AT RM 37,490 RM 410 1 AV - AT RM 40,390 RM 442
Perodua Bezza
1 Gxtra - MT RM 34,490 RM 378 1 Gxtra - AT RM 36,290 RM 398 1 Premium X - MT RM 40,090 RM 439 1 Premium X - AT RM 41,890 RM 459 1 Advance - AT RM 47,790 RM 523
Perodua Myvi
1 G - MT RM 42,790 RM 468
1 G - AT RM 44,590 RM 488
1 X - AT RM 46,590 RM 510
1 H - AT RM 50,290 RM 551
1 AV - AT RM 54,090 RM 593
Perodua Alza
1 S - MT RM 51,490 RM 564
1 S - AT RM 54,290 RM 594
1 SE - AT RM 56,890 RM 623
1 AV - AT RM 62,690 RM 685
Perodua Aruz 1 X RM 72,900 RM 798 1 Advance RM 77,900 RM 853
- On The Road Price Without Insurance **Expected Monthly Payment Based On 10% Down Payment, 9 Years Loan Period and 3% Interest Rate
Product Mix Pricing Strategies
Product Mix is a collection of products and services that a company chooses to offer
its market. The strategy for setting a product’s price often has to be changed when
the product is part of the product mix. There are five (5) product mix pricing
strategies that have to be considered by the companies.
For most of the automobile companies which include Proton and Perodua, they use
optional-product pricing. Optional-pricing pricing is pricing optional or accessory
products along with the main product. For example, Proton and Perodua offered
different variants of the same car product. Customers can choose these variants
ranging from base model to high-end model. These variants can varies between
each other which includes different engine capacity, number of airbags, seats pattern
and materials, and infotainment system. These optional ads-on however does not
affect the main function of the product.
Price Adjustment Strategies
There were seven (7) price adjustment strategies which are discount and allowance
pricing, segmented pricing, psychological pricing, promotional pricing, geographical
pricing, dynamic pricing, and international pricing.
The car manufacturer company like Proton and Perodua must decide how to price its
products for customers located in different parts of the country. Therefore, they
should consider the geographical pricing strategies for this situation. One of the
geographical pricing options is FOB-origin pricing , this practice means that the
products are placed free on board a carrier. At this point, the title and responsibility
pass to the customer, who pays the freight from the factory to the destination. The
further the distance, the higher the cost incurred. This explains why products and
services offered in east Malaysia were slightly higher that west Malaysia.
PROMOTION
Promotions refer to the entire set of activities, which communicate the product, brand
or service to the user. The idea is to make people aware, attract and induce to buy
the product, in preference over others.
Advertising Strategies
The new SUV model, X-50 which rumoured to be entered the market by year 2020.
Sales Promotion
Sales promotion during festive season and school holidays.
References
Bhd., P. O. (5 August, 2007). Astonishing Facts. Retrieved 26 October, 2019, from Proton: htp:proton/about_proton/facts_igures/astonishing_facts.php
Friesner, T. (8 May, 2014). Three Level of Product. Retrieved 30 October, 2019, from MarkeingTeacher: htps:markeingteacher/three-levels-of-a-product/
Lye, G. (24 May, 2017). Geely to acquire 49% stake in Proton, 51% in Lotus – deiniive agreement to be signed before end of July. Retrieved 26 October, 2019, from paultan: htps:paultan/2017/05/24/geely-to-acquire-49-9-percent-stake-in-proton-51-percent- in-lotus/
Lye, G. (17 January, 2017). Perodua in 2016 – 207,100 vehicles sold; highest ever market share with 35% of TIV; 6% growth in exports. Retrieved 28 October, 2019, from paultan: htp:paultan/2017/01/17/perodua-in-2016-207100-vehicles-sold-highest-ever-market- share-with-35-7-of-iv-6-growth-in-exports/
Management, E. P. (October, 2017). Three Product Level (Kotler). Retrieved 30 October, 2019, from ExpertProgramManagement: htps:expertprogrammanagement/2018/04/three- product-levels-kotler/
Mazur, & Eliguisz. (2006). World of Cars 2006·2007. Warsaw, Poland: Media Connecion Sp.
Perodua. (2019). Corporate Mission. Retrieved 28 October, 2019, from perodua.com: perodua.com/corporate-mission
Perusahaan Otomobil Nasional Sdn. Bhd. (2010). Corporate Informaion. Retrieved 28 October, 2019, from protontr: htp:protontr/product/Corporate/About-Proton/Corporate- Informaion/Introducion
Proton&Perodua - Proton and Perodua
Course: Principles and Practice of Marketing Mix (MKT420)
University: Universiti Teknologi MARA
- Discover more from:
