presentation proton.pptx
TRANSCRIPT
P R O T O N
INSTITUT OF POSTGRADUATE STUDIES
school OF COMMUNICATION
UNIVERSITY SCIENCE OF MALAYSIA
PROTON EXORA II
FACTS
As per its Official Website and Annual Reports, PROTON
listed the following values as its core strategy values:
Quality
Customer Focus
Innovation
Team Work
Speed
Caring
Honesty
PROTON STRATEGY
High Quality and Low Price!
COLLABORATION/PARTNERSHIP
PROTON-MITSUBISHIPROTONPROTON + (?) MISSED OPPORTUNITIES1985SAGA: 1.3 or 1.5 litre engines. Simpler model of the Lancer, a well-established and popularMitsubishi model for the mass market2001 WAJA: its first home-designed model.To expand its sales internationally and domestically, Proton need to improve its technology.2004-2014Discussions with global automotive originalequipment manufacturers (OEMs), including General Motors (GM), Peugeo, Honda and, more recently, Volkswagen AG went nowhere as none.2004Mitsubishi sold off its stake in Proton. Purchased by the MalaysiangovernmentEFFECT:Deteriorating quality of proton products. Customers perceived the quality of proton vehicles to be better when they were still produced in partnership with MitsubishiEventually, Mitsubishi agreed to form another alliance with Proton, but only on a project basis.PROTON was Malaysia's dominant auto manufacturer until the establishment of PERODUA, in the year 1993.
Now the Malaysian auto market is dominated by Malaysia's national cars, PROTON and PERODUA which jointly accounted for 90 per cent of the vehicles sold annually.
INDUSTRY REVIEW
MAA Vehicle Sales Summary for Proton and Perodua in Malaysia for 2007 and 2008.
PROTON VS PERODUA
INDUSTRY REVIEW - Local
INDUSTRY REVIEW - International
Summary : only 8% of all sold cars were exported and 92% were purchased in internal market
COUNTRYCars Sold 1985 -2013NUMBER%Malaysia3,500,00092%United Kingdom151,4214%China85,9222%Australia32,9361%Singapore23,9501%TOTAL3,794,229100%Source: (paultan.org - thestar.com.my- bernama.com.my- a4rzero.wordpress.com)
In the competition, Proton Exora II came in first place in the Extended Electric Vehicle category (electric cars judged on distance travelling capacity). Charting success upon success has been the hallmark of our national car brand. According to an Utusan Malaysia report on December 2012, Proton first model, the Proton Saga, was Malaysia first step towards being a global automotive player
INDUSTRY REVIEW
PROTON Holdings Berhad Group Managing Director Dato Haji Syed Zainal Abidin Syed Mohamed Tahir
The achievements recorded by Proton over the years are a testament of itscontinued efforts to improve. It is with pride that we acknowledge that the Proton Saga has joined the ranks of world-famous car brands as one of the car models from a carmaker that had stayed in production longer than many other car models.
INDUSTRY REVIEW
To date, PROTON is facing severe competition in its home market as government may remove rules that protect local car makers when it reviews the 3-year-old auto policy to boost foreign investment.
This reduction of the protection accorded to PROTON may increase its difficulties to become market leader again. Although government has cut import taxes, it still imposes high taxes on locally assembled foreign cars and this has given protection to national carmakers.
INDUSTRY REVIEW
SWOT ANALYSIS
Exora II, strength lies in its competitively priced product. Its extensive nationwide distribution network helps the industry to move forward with the support from Malaysian government. The company also has good corporate governance, and highly regarded by many Malaysians out of patriotism they feel for this country as PROTON is the national car maker.
STRENGTH : EXORA II
The recent announcement by automotive conglomerate DRB-Hicom Bhd that it plans to raise RM2bil in funds, mostly to help turn around wholly-owned carmaker Proton Holdings Bhd, is seen as a move in the right direction by many.
Proton needs to develop new technology to help keep it competitive. For any automotive company to survive and be competitive, it needs to develop new technology on a continuous and consistent basis
STRENGTH : EXORA II
The pricing of its vehicles can be more competitive. However, this is not the case as the company cant bring down the unit price of its vehicles as its development costs are spread across a smaller number of units, unlike many of its foreign competitors.
STRENGTH : EXORA II
Inexperience, apparently due to short history in car making certainly could not be an excuse for PROTON to come out with low quality products. This could cost PROTON very high as over time, it might jeopardize PROTONs reputation.
Poor product performance and functionality is something that cannot be allowed to happen and quality always needs to be monitored and assured to the customers. Other than that, operational cost and other expenses is always a challenge to any industry and for the case of PROTON, it is more vulnerable to increasing raw material cost such as steel particularly.
WEKNESSES : EXORA II
The demand for cars in any segment is always there, except for more trying times like during economic crisis. There are always opportunities for PROTON to be a global player. Nobody ever say that cars should only be manufactured by Japan, Germany and other western countries though of course these countries have the reputation of making good cars long before PROTON and Malaysia comes into the picture.
OPPORTUNITIES
Collaborations within industry players could enable PROTON to do many things. Through research and development more innovative products could be invented, and ensure that PROTON as a brand name remains in the industry.
OPPORTUNITIES
One of the threats is of course from the rivals, the competitors in the automotive industry. Even Perusahaan Otomotif Kedua (Perodua) Malaysian 2nd national car maker, set up after PROTON started to challenge PROTONs market share in Malaysia.
Perodua actually did better in recent years and outperformed PROTON via their most well selling model so far, MyVi and grab more than 30% of overall market share. Under policy like AFTA, (ASEAN Free Trade Area) consumers can have more choices from Honda, Toyota, Chevrolet and other brands to be selected at a more affordable price
THREATS
PROTON brand product categories placed itself against its competitors, namely Toyota and Honda. Product extensions for each brand are grouped together. Under Luxury category, there is no compatible PROTON Exora II product as to compare with Toyota Camry or Honda Accord.
As for compact car category, we put PROTON Savvy, Toyota Yaris and Honda Jazz in the same group. From here we figure that PROTON cars are available in almost all product categories as what the competitors have. In term of price, we see that for most of the categories, PROTON Exora II is more competitively priced rather than Toyota or Honda.
COMPETITORS ANALYSIS
CRITICAL ISSUES/ CHALLENGES
The Proton badge today does not carry much brand equity. Many view Proton as a maker of cars that lack excitement but which are relatively cheap compared with Japanese or South Korean makes.
Proton's Campro engine, which is the main staple of its product line, is hardly cutting-edge given today's technology. Proton also lacks an engine or platform to expand into the SUV and MPV markets, or the 2.0-litre and above segments. Proton may need to collaborate with a foreign partner much in the way BMW and PSA Peugeot-Citroen are working together to develop new engines and technologies.
Rising fuel prices and global warming would dictate the direction of automotive development, and these are beyond Proton's capabilities
Proton has limited funds for research and development. And the bulk of its exports are mostly confined to less mature markets, including China and some Gulf Cooperation Council. A tie-up with a strong foreign brand will enable Proton to penetrate more discerning markets.
Based on the above problem identification and problem analysis, our group has come out with marketing proposition to mitigate the problems identified by introducing new concept car known as :
Proton Exora II
MARKETING PROPOSITION
applying new innovations technology
increase in fuel efficiency
environmental friendly concepts
emphasis on convenience and safety
MARKETING PROPOSITION
Economical providing cars which are affordable, cost efficient and value for money;
Caring providing customer satisfaction and its social corporate responsibility as a truly Malaysian car manufacturer and to enhance its Customer Relationship Management (CRM)
Quality providing a consistently improved product and customer experience.
MISSION
TARGET MARKET
The process in identifying the consumer target for new Proton Exora II is important due to the fact that consumers tend to have different brand knowledge structures and thus they will perceive differently for the products or services. Proton has successfully identified their target market, according to the segmentation bases namely behavioral, demographic and psychographic factors
There are three planning phases in value
The first phase is by Proton choosing the value by adopting strategic marketing via formula Segmentation, targeting and positioning (STP)
determine its specific product features, prices and distribution
communicating the value of Proton Exora II by utilising the sales force, sales promotion advertising and other communication tools to promote Proton Exora II
KEY PLANNING ASSUMPTION
MARKETING PLAN & STRATEGY
PROTON has used 3 means of advertising:
print advertising
radio advertising
television commercial advertising
With the tagline
ADVERTISING
YOULL BE AMAZED
KERIANGAN KELUARGA
SALES PROMOTION
To capture the attention of local consumers
PROTON XChange programme allows the consumers to trade-in their PROTON car with additional RM5,000 to own a brand new of Exora II
REBATE!
Customer franchise building promotions like car-testing, demonstrations and noncustomer franchise building promotions such as premiums
As a main sponsor in the major sports event in Malaysia, PROTON has actively involved in engaging the public with the events they sponsored.
By being the sponsor for these events, PROTON will be able to enhance their corporate image dimensions. This step is a soft sell and a means to improve the public perceptions that is reliable, social-conscious, etc.
For Exora 2, with the current sponsorship event available for PROTON is many, that will easy to promote for Exora II with advertising program which collaborate with right events like Formula 1 motorsports at Sepang, A1 Race Motorsports, PROTONs Football Club to play in the Malaysian Super League, PROTON Malaysia Super Series Badminton Tournament, Le Tour de Langkawi and so on to reach the target market.
EVENT & SPONSORSHIP
With the advancement in the information technology, PROTON with its official website, www.proton.com, has managed to capture the market share. Interactive marketing, particularly, allows a 2-way communications as compared to the traditional forms which are only one-way.
For the Exora II campaign, customers can simply logging onto the website www.proton-edar.com.my to do activities for searching, altering information, inquires and responses to questions and to apply for hire purchase transaction with PROTON Commerces e-Finance system are immediately advised as to whether their applications have been rejected or conditionally approved, subject to the submission of relevant supporting documents.
PROTON has also integrated web strategies with other aspects of IMC programs, i.e. media advertising. Media advertising in PROTONs website to the internal advertising in the web portal, such as pop-up flyer and interactive 3-D flash for different car models. These advertisements will create a different visual experience to the online viewers as compared to the conventional media.
INTERACTIVE / ONLINE MARKETING
CONCLUSION
Overall, the action plans recommended are based on 4Ps strategies and marketing mix models, is to increase its sales and promotions, and give more emphasis on continued research and development to meet the changing needs of the customers. In this regard it is important that the company to increase its appearance on print and electronic medians and on internet especially on social media networks. It is also important to measure the impacts of the marketing campaign and to take necessary corrective action time to time to improve effectiveness and efficiency of the campaigns undertaken
II
T H A N K Y O U
37%26%12%8%10%4%3%
Market Share for each Manufacturer
in Malaysia as of Feb. 2013 (Maybank Research Sector Update March 2013)
PeroduaProtonToyotaHondaNissanHyundaiVolkswagen