proton mm combined 2010

8/10/2019 Proton Mm Combined 2010

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University of Malaya

Faculty of Business and Accountancy

Graduate School of Business

Master of Business Administration

___________________________________________

CMGB 6101 MARKETING MANAGEMENT

PRODUCT : PROTON EXORA 2

For: Michael M.Dent Msc, MPhil, M!M

Prepared by:

"alisah Ashari GA #$#%#$

&inda Sim Sie' (ian GA #$##%)

*eh hye Ben+ GA #$##-

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41F14101S

APP10D!1S

i? 0issan Grand &ivina S@ecification

ii? Proton 1ora S@ecification

iii? am@ai+n Flo' hart

EXECUTIVE UMMAR!

Proton 1ora is a com@act multi>@ur@ose vehicle MP3? model @roduced Cy Malaysia car

manufacturer no'n as Proton "oldin+s Berhad Proton?. *he ne' model car 'as launched

on %- A@ril 7##8, 'hich is the first Malaysian desi+ned MP3. Proton 1ora is a ne' lifestyle

family vehicle, 'hich comCines advanced stylin+, s@acious interior, 'hich accommodates 9

adults and has multi@le usa+e, hi+h Euality desi+n and +ood @erformance 'ith em@hasis on

the value for money factor.

Des@ite the Cenefits offered Cy Proton 1ora, our +rou@ had identified fe' maor @roClems

faced Cy Proton. /ne of the maor @roClems faced Cy Proton is Proton has lost its maret

share to local and forei+n com@etitors from )# of the domestic @assen+er car maret in

7##% to 78 for the first half of 7##$ Malaysian Automotive Association 7##$?. ProtonHs

Crand value has also dro@@ed from 4M78 million in 7##9 ran %8? to 4M%-# million in

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7##$ ran 7?. *he latest ne's on 7rd0ovemCer 7##8 reveals that ProtonHs ranin+ has

dro@@ed from MalaysiaHs # Most 3aluaCle Brand MM3B? ranin+.

*herefore, our +rou@ has recommends ne' conce@t car no'n as Proton 1ora 7 'ith

additional im@rovised features included to enhance the @erformance and increase the demand

for Proton 1ora car. PossiCle solutions to miti+ate the @roClems identified are Cy introducin+

additional value im@rovised features to enhance the @erformance and sales of Proton 1ora 7

Cy focusin+ on fuel efficiency, convenience and safety and em@hasiIin+ on the environment

friendly vehicle. /verall, the action @lans recommended are Cased on 6PsH strate+ies and

maretin+ mi models.

1" INTRODUCTION

1"1" A#$% I&d#'$ry (& )e&era* 200+

*he automotive industry in Malaysia can Ce considered as one of the most im@ortant and

strate+ic industries in the manufacturin+ sector. om@ared 'ith other industries in the

manufacturin+ sector in Malaysia, the automotive industry is ho@ed to Coost the

industrialiIation @rocess so that Malaysia can Ce a develo@ed nation Cy 7#7#.

Ve,(-*e' Sales Unit Maret Share 4anin+

.a& /

.#&e

.a&

.#&e

.a& /

.#&e

.a&

.#&e

.a&

.#&e

.a& /

.#&e

200 200 200 200 200 200

% Perodua

9-,6

$

$,-

$8 6.7 #.% % %

7 Proton

6),8

--

97,8

-9 7%. 7).7 7 7

*oyota

),-

97

-,%

78 %).) %8.%

6 "onda

%6,%

9-

%),9

)) ).6 ) 6 6

- 0issan

$,

)

%6,8

7- .$ -.6 ) -

) 0aIa %#,$ ),9 6.8 7.6 - )

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8$ #8

9 !noom

6,

,$

87 7 %.6 9 9

$ MitsuCishi

7,

6%

,7

6# %.% %.7 %# $

8 Daihatsu

7,

9)

7,)

9# %.% % 8 8

%# SuIui

9

8

7,)

#7 #. #.8 %8 %#

Tab*e 1:MAA 3ehicle Sales, Maret Share and 4anin+ Summary for *o@ %# Passen+er

ars = ommercial 3ehicles in Malaysia for


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furthermore, consumers had favoraCle sentiments aCout the maret conditions. At the same

time, auto com@anies 'ere introducin+ ne' models, @articularly in the lo'er en+ine ca@acity

ran+e to sustain the current Cuyin+ interest.

*here 'as also the shift of consumers from e@ensive car models to the reasonaCle national

cars and the rush of customers to @urchase their vehicles Cefore the holidays of "ari 4aya.

Further, the Coost in @assen+er car sales of in Se@temCer 7##$ can Ce attriCuted to the

im@rovement in confidence of consumers and their enhanced lifestyles. "o'ever, in 7##8,

the @ros@ect 'as someho' different due to the +loCal crisis 'hich affected a numCer of

countries around the 'orld. *his has caused the sales of automoCiles to remain lo' as Cans

are increasin+ their interest rates to Crace for the lo' volumes. Besides the +loCal crisis, the

rise in oil @rices has also affected the sales of Malaysian automoCiles. Sales are e@ected to

decline as consumers decide to hold Cac in their @urchasin+ and this 'ill definitely affect

P4/*/0 as sho'n in their sales.

urrently vehicles that are manufactured Cy Malaysian com@anies such as P4/*/0,

P14/DUA, !noom and Malaysia *ruc = Bus M*B? are @riced lo'er than com@araCle

vehicles that are @roduced Cy the assemClers and es@ecially that of the BU im@orts. *his

has allo'ed lo'er level income earners to o'n a car 'ithin their household.

For year 7#%#, it is e@ected that there 'ill Ce a return to @ositive annual +ro'th in ne'

vehicle sales althou+h it may seemed that the im@act is a slo' one. &on+ term e@ectations

are hi+h for the small car se+ment, as the MAA envisa+es a shift to'ards more fuel>efficient

cars. Besides the recovery in the economy, 'ith technolo+y and research and develo@ment

undertaen Cy the auto com@anies, it is e@ected that there 'ill Ce a rise in the sales of cars in

the near future.

2" COMPAN! BACKGROUND

P14USA"AA0 /*/M/B!& 0AS!/0A& B14"AD or P4/*/0 'as incor@orated on

May 9, %8$ to manufacture, assemCle and sell motor vehicles and related @roducts,

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includin+ accessories, s@are @arts and other com@onents. P4/*/0 @roduced MalaysiaHs first

car, the Proton SAGA 'hich 'as commercially launched on


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P4/*/0Hs model @roducts include ;A


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Germany, cost @rices, the 7#>year @rotectionist @olicies accorded to P4/*/0, and other

Euestions concernin+ the national automotive @olicy.

*he 7#>year @rotectionist @olicies accorded to the national automaer P4/*/0 'as the

+overnment 'ays of emulatin+ other vehicle manufacturin+ countries. *un Mahathir

Mohamad, the former @remier and @resent advisor to P4/*/0 once said that 'ithout such

@olicies, Malaysia 'ould not have a car industry, admittin+ that Proton had +ained $# @ercent

maret share NCenefittin+ from @rotectionism,L and P4/*/0 other'ise 'ould not have Ceen

aCle to @enetrate forei+n marets due to the economies of scale

Mal@ractices are rife des@ite the Cenefits of the im@ort system of A@@roved Permits APs?.

P4/*/0 also lost money due to the lo'er @rices of forei+n cars sold in Malaysia. !t has

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Ceen identified that lo'er @rices for forei+n cars is due to volume and P4/*/0 'ould not

Ce aCle to achieve this Cecause of their @rotected car maret.

3"2" B#'(&e'' M%de*

!t is hard to see P4/*/0 ever main+ money consistently 'ith the current Cusiness model

that it o@erates. At the heart of the car Cusiness is all aCout t'o Casic thin+s: cost structure

and @roduct. General Motors failed Cecause it messed u@ on Coth counts.

*he lessons from GM are sim@le > mae @roducts that @eo@le 'ant, and mae them in a cost>

efficient 'ay. Mar+ins are +enerally so thin in the auto Cusiness that car factories really only

mae money 'hen they are runnin+ at or near full ca@acity. P4/*/0 has not one, Cut t'o

factories that can out@ut a comCined maimum of %.7 million cars a year, yet it Cuilds only

%-),$6- units.

Given that the vehicle maret here is 'orth half a million units annually, even if 'e roused

enou+h @atriotic fervor to +et every car Cuyer to choose a P4/*/0 over any other Crand,

that 'ould still soa u@ only half of the total ca@acity.

3"3" #a*($y C%&$r%*

P4/*/0 'as estaClished 7- years a+o Cy *un Mahathir Mohamad as @art of an amCitious

national industrialiIation @lan, Cut it has lon+ Ceen criticiIed for @oor Euality and

unim@ressive desi+n.

P4/*/0Js maor @roClem, as everyCody no's, is Euality control. om@laints ty@ically

relate to failures in @o'er 'indo's, doors and alarm systems. !tHs not unusual very

common, to Ce @recise? to hear @uClic com@laint aCout the overall @oor Euality vehicles Cy

P4/*/0 over the years and indirectly affectin+ the financial result of the com@any, 'hen its

sales d'indled tremendously and continuously losin+ maret share and suCseEuently, the

@rofit mar+in eroded suCstantially too.

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P4/*/0Js head of Cody en+ineerin+ once told a local ne's@a@er that the Cenchmar for

'orld Euality class cars is t'o defects @er car Cut from our oCservation, 'orld class Euality

car manufacturers have Ceen aimin+ for Iero defects all this time. ND/ !* 4!G"* *"1

F!4S* *!M1N O slo'ly Cut surely the learnin+ curve must sho' @ositive result. Most

successful com@anies are.

3"7" E-%&%8(- 9a-$%r'

3"7"1" Dere)#*a$ed 8are$

P4/*/0 Js maret share has slum@ed over the years, as it faced difficulties co@in+ in a ne'

dere+ulated maret.

*he +overnment has ur+ed P4/*/0 to for+e a @artnershi@ 'ith a forei+n automaer to +ive

it the e@ertise and economies of scale that it needs to survive, Cut tals 'ith 3ols'a+en and

General Motors have colla@sed 'hen the Government decided it is Cest to ee@ the

P4/*/0Hs o'nershi@ or ris losin+ control over the desi+n and @roduction of the national

car maer.

3"7"2" T,e eer/(&-rea'(&) -%'$ %9 8aa-$#r(&) a&d ra; 8a$er(a*'

P4/*/0, in FeCruary 7#%# had made net @rofits for t'o Euarters in a ro' due to lo'er

o@eratin+ costs and increased sales.

"o'ever, it still Cooed a net loss of 7.87 million rin++it %# million dollars? for the nine

months to DecemCer, althou+h it 'as smaller than the -8#.66$ million rin++it loss a year

earlier.

*he P4/*/0 chief said the carmaer 'ould @roceed 'ith e@ansion @lans des@ite the

soarin+ cost of ra' materials.

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3"7"3" ,ae& -%&'#8er -%&9(de&-e '$e88(&) 9r%8 $,e $,rea$ %9 )*%ba* e-%&%8(-

'*%;d%;& a&d a& %er/-r%;ded %pera$(&) e&(r%&8e&$

Des@ite the challen+es that @ersistently im@act the industry, 'hich include the ever>

increasin+ cost of manufacturin+ and ra' materials, shaen consumer confidence stemmed

from the threat of +loCal economic slo'do'n as 'ell as an over>cro'ded o@eratin+

environment. GloCally, the automotive industry is +oin+ throu+h a @eriod of chan+e,

reflectin+ Coth the ra@id chan+e of technolo+y, increasin+ need to com@ly 'ith continually

more strin+ent re+ulatory reEuirements and increasin+ liCeraliIation of marets. "i+her

@etrol @rices and increased cost of ra' materials and manufacturin+ resultin+ in lo'er @rofit

mar+ins, also @osed a challen+e. !n addition, the declinin+ trend for vehicle sales commenced

in early 7##), Cecause the macro>economic factors, hi+her interest rates and stricter lendin+

@ractice.

3"u@s virtually every year. P4/*/0 in contrast unveils on avera+e a ne' model or model

variant a year. *his re@lacement rate sim@ly 'ill not do for consumers 'ho have +ro'n

accustomed to seein+ fresh models in the forecourts of its com@etitors.

/ne of P4/*/0Hs o'n Middle 1astern distriCutors lamented the same 'hen he +ave u@ the

Cusiness. ;hen *oyota, "onda and the rest 'ere s@rin+in+ models left and ri+ht, P4/*/0Hs

lan+uid @ace 'ith facelifts and re@lacement models failed to hold CuyersH interest. !t is slo'

Cecause P4/*/0 cannot afford to have it any faster. 0ot 'hen its rate of returns is so lo'.

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*he Savvy, for instance, starts at Q9,88- 4M 66,###? in the U(, one of the fe' marets that

P4/*/0 e@orts to. *hat +ets you a (ia Picanto and Q7,### in chan+e. /r, if you 'ant to

Clo' every sin+le sterlin+, you mi+ht o@t for a 3ols'a+en Polo, alCeit a @retty Care version.

;ith manufacturers @ushin+ 'ell into seven>fi+ure @roduction territory, P4/*/0Hs %#$,6#-

do it no favor at all. UnaCle to +enerate the ind of volumes that any mass>maret

manufacturer needs to Ce viaCle, P4/*/0 cannot ho@e to match the scale or enoy the

Cenefits that its com@etitors have.

*o have P4/*/0 address its dismal e@orts 'ith ur+ency is to have it treat a sym@tom and

not the @roClem. 1@orts are @oor Cecause the fundamentals of the com@any are @oor. !ts

@roduct re@lacement cycles are far too lon+ for todayHs maret and it sim@ly doesnHt have the

ind of numCers to Ce aCle to offer @rices the (oreans, for eam@le, already do.

Before P4/*/0 can ho@e to +et its e@orts u@ to 'here it needs to Ce, it 'ill need to solve

these @roClems first. And it is unliely that it 'ill Ce aCle to do it alone. !t may have once

Ceen flush 'ith cash Cut this is no lon+er the case. A fiercely com@etitive maret at home has

made sure of that.

*o do this, P4/*/0 'ill need a @artner that can hel@ shoulder the eorCitant costs of

ee@in+ u@ 'ith the u@ seemed its Cest Cet at the time Cut it chose to reCuff the @rotracted

flirtations. 0o', 3ols'a+en is Cusy 'ith its o'n marria+e to Porsche. And the rest of the

Ci+ @layers in the 'orld are also Cusy licin+ their o'n 'ounds.

Fresh from the economic crisis, P4/*/0 'ill have fe'er healthy @artners to choose from

and it is itself no lon+er the e'el it once 'as. But the situation remains unchan+ed, then as

no'. ;ithout outside assistance, e@orts 'ill Ce the least of P4/*/0Hs concerns.

3"


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*hen there is the matter of @rice. !n Malaysia, P4/*/0 @rices are e@t com@aratively lo'er

to forei+n manufacturers throu+h @rotectionism. *his, unfortunately, is a crutch the com@any

cannot count on in forei+n marets. Protectionist @olicy has lar+ely Ceen Clamed for

P4/*/0 Js sta+natin+ @erformance.

3"6" $a99 a&d Ve&d%r'

P4/*/0Hs Mana+in+ Director, yed >a(&a* Ab(d(&? 'as once Euoted sayin+ that )# @ercent

of defects in P4/*/0 cars 'ere due to@oor Euality com@onents from vendors,Cut admitted

the rest of the Clame fell on the firmHs 'orforce.

!f the mana+ement is serious in Crin+in+ the P4/*/0 Cac to a @rofitaCle entity, they should

run it lie a @ro@er con+lomerate and not as a charity or+aniIation, 'hich means incom@etentvendors and vendors 'hich 'ere Cein+ overlooed, contriCutin+ hiccu@s and do'nturn of

sales @erformances and do not adhere to the standard set must Ce removed and re@laced.

!n another 'ord, if P4/*/0 is to tal aCout NIero>defectN, Iero tolerance to'ards vendors

'ho canHt deliver must come into the @icture as a com@limentary to the cam@ai+n, other'ise

the entire eercise is +oin+ to Ce a futile effort and @uClic fund 'ill continue to Ce 'asted.

P4/*/0Hs Iero>defect cam@ai+n aimed at erasin+ a re@utation for @oor Euality has left it

stru++lin+ to com@ete a+ainst forei+n com@etitors. *he mana+ement had ur+ed the

em@loyees to focus on Euality control, 'hich is critical to @rofitaCility and overseas e@orts.

onsumers 'ant Euality cars and they have hi+h e@ectations.

Accordin+ to Syed Rainal, N*oday, 'e 'ant to focus on reCuildin+ the com@any. *he focus is

@uttin+ P4/*/0 on a Cetter footin+, to im@rove Euality, @roduct and @rofit. ;e need to Ce

@re@ared to com@ete +loCally.L

*o retain a com@etitive ed+e in term of sills>set and technical no'>ho' in this industry,

P4/*/0 needs to ensure that their human ca@ital is continuously nurtured 'ith the ri+ht

trainin+ and tools. onsistent and relevant trainin+ is crucial to ensure that their em@loyees

have the no'led+e and tolls to hel@ drive P4/*/0 for'ard.

Pa+e %6
http://afp.google.com/article/ALeqM5hG1jo46GHdbxHG4huKHSo6PaXJFAhttp://afp.google.com/article/ALeqM5hG1jo46GHdbxHG4huKHSo6PaXJFA


15/41

3"" O$,er'

P4/*/0 lacs an en+ine or @latform to e@and into the SU3 and MP3 marets, or the 7.#>

litre and aCove se+ments. P4/*/0 may need to collaCorate 'ith a forei+n @artner much in

the 'ay BM; and PSA Peu+eot>itroen are 'orin+ to+ether to develo@ ne' en+ines and

technolo+ies. !t is of some comfort, therefore, to learn that the Government is still 'illin+ to

consider a stron+ strate+ic forei+n @artner in the future. A tie>u@ 'ith a stron+ forei+n Crand

'ill enaCle P4/*/0 to @enetrate more discernin+ marets.

!n the lon+er term, many of the +reen en+ine technolo+ies that are emer+in+ as a result of

risin+ fuel @rices and +loCal 'armin+ 'ould dictate the direction of automotive develo@ment,

and these are Ceyond P4/*/0 ca@aCilities.

/n its o'n, P4/*/0 has limited funds for research and develo@ment. And the Cul of its

e@orts are mostly confined to less mature marets, includin+ hina and some Gulf

oo@eration ouncil.

3"" T,e C,%(-e %9 De-('(%& 5a-ed by $,e Key Per'%&

P4/*/0Hs Mana+in+ Director Datu Syed Rainal ACidin Syed Mohamed *ahir, has taen a

turn for the Cetter. Syed Rainal has held the reins for some t'o years and has instituted a host

of reforms, addressin+ many of the Euality control issues, and vendor and maretin+

@roClems faced Cy P4/*/0 in the @ast.

P4/*/0Hs realiIes that stron+ customer orientation and com@etitively @riced @roducts are

the foundation of the com@anyHs Cusiness. Performance tar+ets have Ceen develo@ed to

maintain maret leadershi@, to continue to develo@ innovative @roducts, to satisfy customerHs

needs Cetter and to enhance @rofitaCility.

Primary factors that contriCuted to the resur+ence of the industry included the introduction of

ne' models at hi+hly com@etitive and consumer>friendly @rices attractive and creative

financin+ schemes for car Cuyers as a result of a++ressive sales cam@ai+ns and a stron+

economic +ro'th of -.9- in 7##$ F4 7##8?. *o chan+e the attitude and mindset of

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16/41

em@loyees, Cest @ractices are a@@licaCle via effective trainin+. U@on realisin+ the conce@t,

P4/*/0 @rovided trainin+ to all em@loyees to hel@ them understand the com@anyH ethical

@rinci@les and ho' those @rinci@les can hel@ them mae decisions. "uman ca@ital

develo@ment @ro+rammes Cecome more structured 'hich hel@s to stren+then com@etitive

ed+e. P4/*/0 had develo@ed etensive vendor @ro+rammes to ensure they adhere to the

e@ected Euality 'hich @reviously 'as overlooed. *his has led to reduction of 7 direct>

vendors, and a more structured and mana+eaCle direct>vendor net'ors.

*ain+ a loo at the latest 1oraand 'e 'ill +et a +lim@se of some of the chan+es > more

uniform @anel lines, Cetter interior @lastics and seatin+, a more res@onsive transmission, and a

more invitin+ interior, amon+ others.

7" PROB4EM ANA4!I

7"1" Mare$ Oer(e;

/nce no'n as the in+ of the road, P4/*/0 has seen its fortunes d'indle due to +ro'in+

com@etition from local and forei+n com@etitors as Malaysia o@ens u@ its auto maret.

Malaysia is Southeast AsiaJs lar+est @assen+er car maret 'ith 689,6-8 vehicles sold in the

year 7##$.

MalaysiaHs auto maret is dominated Cy its national cars, P4/*/0 and Perodua 'hich in

year 7### accounted for maret share of rou+hly 8# @ercent of the vehicles sold annually.

Some 7- other manufacturers com@ete for the remainin+ %# @ercent. But com@are 'ith last 7

years, maret share of the national car maers has declined to rou+hly ) @ercent.

Durin+ year 7###, P4/*/0 conEuered ).6 @er cent maret share. !t has eroded to Celo' #

@ercent in year 7##9 and 7##$. Perodua, the second national cars manufacturer has taen

over the maret of the in+ since t'o years a+o 'ith a maret share of .) @ercent in 7##$.

P4/*/0 has Ceen maintainin+ their maret share 'ith Cest> cost and Croad differentiation

strate+y, althou+h the maret share fell from 6# in 7##- to 7 in 7##)

'''.'iicars.com? allo'in+ Perodua to overtae P4/*/0 as the countryJs lar+est

Pa+e %)
http://www.wikicars.com/http://www.wikicars.com/


17/41

@assen+er carmaer for the first time. *otal losses in 7##9Js financial year has climCed to

4M%)8 million and this 'as caused Cy the etensive @romotional discounts Cy its ti+ht

rivals, accordin+ to P4/*/0.

Fi+ure %: Sho' the /verall maret share of @assen+er car maret. from MAA vehicle sales

resources? 0oted : 7##) data is not @uClished

*o date, P4/*/0 is facin+ severe com@etition in its home maret as +overnment may

remove rules that @rotect local car maers 'hen it revie's the >year>old auto @olicy to Coost

forei+n investment. *his reduction of the @rotection accorded to P4/*/0 may increase its

difficulties to Cecome maret leader a+ain. Althou+h +overnment has cut im@ort taes, it still

im@oses hi+h taes on locally assemCled forei+n cars and this has +iven @rotection to national

carmaers.

&ooin+ at the industry overvie', the year 7##8 'itnesses a tremendous im@rovement in

motor vehicle sales. *his u@trend, 'hich Ce+an from the second half of 7##9, 'as a 'elcome

relief to the industry Cut unfortunately the momentum could not Ce maintained. After

recordin+ @eas of more that -#,### sales in A@ril,


18/41

Cy the colla@se of maor financial institutions in the United States. *his 'as further

com@ounded Cy the increase in @etrol @rice in /ctoCer 7##$. After that the industry resur+ed,

driven mainly Cy the introduction of ne' models at hi+hly com@etitive and consumer>

friendly @rices, attractive and creative financin+ schemes for car Cuyers as a result of

a++ressive sales cam@ai+ns, and stron+ economic +ro'th of -.9- in 7##$. But a+ain, in

7##8, MAA has forecasted that there 'ould Ce a decrease of %7.7 of @assen+er cars

com@ared to 7##$. *he forecast 'as 'ell>founded on the current +loCal financial and

economic climate, reiterated Cy the contraction of GDP +ro'th. /ther factors may include

fluctuatin+ oil and commodity @rices as 'ell as unfavoraCle F/412 rates ref:

'''[email protected]?.

!n terms of financial @erformance, for the financial year ended % March 7##8, P4/*/0

recorded a loss after ta of 4M#%.$ million, althou+h there 'as im@roved revenue of

4M).- Cillion. *his decline 'as lar+ely due to the one>off ece@tional @rovision for the

im@airment of @ro@erty, @lant and eEui@ment and inventory 'rite>do'n for certain models

im@acted Cy declinin+ demand. !n addition to that, P4/*/0Hs financial @erformance for the

second half of the financial year 'as also adversely affected Cy the accelerated amortiIation

of dies and i+s for certain models as 'ell as hi+her commodity @rices, increased costs of

com@onents and ra' materials 'hich arose from hi+her forei+n currency echan+e rates,

@articularly the


19/41

Opp%r$#&($(e'

"i+h demand on the @roducts

/@@ortunity to +ro' their Cusiness

+loCally

4=D Develo@ment

Government su@@ort

After>sales services

ollaCorations 'ithin automotive

industry

T,rea$'

om@etitors > local = international

Crands

A lot of suCstitute @roducts in

maret

Fast chan+in+ and advanced

en+ineerin+ technolo+y

1conomic do'nturn O decrease of

car sales

7"2"1" $re&)$,

P4/*/0Hs stren+th lies in its com@etitively @riced @roduct. !ts etensive nation'ide

distriCution net'or hel@s the industry to move for'ard 'ith the su@@ort from Malaysian

+overnment. *he com@any also has +ood cor@orate +overnance, and hi+hly re+arded Cy

many Malaysians out of @atriotism they feel for this country as P4/*/0 is the national

car maer.

7"2"2" @ea&e''e'

!ne@erience, a@@arently due to short history in car main+ certainly could not Ce an

ecuse for P4/*/0 to come out 'ith lo' Euality @roducts. *his could cost P4/*/0

very hi+h as over time, it mi+ht eo@ardiIe P4/*/0Hs re@utation. Poor @roduct

@erformance and functionality is somethin+ that cannot Ce allo'ed to ha@@en and Euality

al'ays needs to Ce monitored and assured to the customers. /ther than that, o@erational

cost and other e@enses is al'ays a challen+e to any industry and for the case of

P4/*/0, it is more vulneraCle to increasin+ ra' material cost such as steel @articularly.

7"2"3" Opp%r$#&($(e'

*he demand for cars in any se+ment is al'ays there, ece@t for more tryin+ times lie

durin+ economic crisis. *here are al'ays o@@ortunities for P4/*/0 to Ce a +loCal

@layer. 0oCody ever say that cars should only Ce manufactured Cy


20/41

other 'estern countries thou+h of course these countries have the re@utation of main+

+ood cars lon+ Cefore P4/*/0 and Malaysia comes into the @icture. ollaCorations

'ithin industry @layers could enaCle P4/*/0 to do many thin+s. *hrou+h research and

develo@ment more innovative @roducts could Ce invented, and ensure that P4/*/0 as a

Crand name remains in the industry.

7"2"7" T,rea$'

/ne of the threats is of course from the rivals, the com@etitors in the automotive industry.

1ven Perusahaan /tomotif (edua Perodua? O Malaysian 7ndnational car maer, set u@

after P4/*/0 started to challen+e P4/*/0Hs maret share in Malaysia. Perodua

actually did Cetter in recent years and out@erformed P4/*/0 via their most 'ell sellin+

model so far, My3i and +raC more than # of overall maret share. Under @olicy lie

AF*A, AS1A0 Free *rade Area? consumers can have more choices from "onda,

*oyota, hevrolet and other Crands to Ce selected at a more affordaCle @rice, as Malaysia

no' has cut duties on im@orts from other Southeast Asian countries to less than five

@ercent.

7"3" C%8pe$($%r A&a*y'('

&uury 1ecutive Family MP3 om@act

Proton > Perdana ;aa 1ora Savvy

*oyota amry Altis 3ios AvanIa

;ish

5aris

"onda Accord ivic ity Stream


21/41

+rou@ed to+ether 'ith *oyota 3ios and "onda ity 'hile for MP3 cate+ory, 'e +rou@ed

the ne'ly launched P4/*/0 1ora 'ith *oyota AvanIa. As for com@act car cate+ory,

'e @ut P4/*/0 Savvy, *oyota 5aris and "onda # more

strin+ent than the Cenchmared fi+ures as set earlier. *he test results, thus far, have

sho'n that P4/*/0 has not only achieved the tar+ets set Cut eceeded most of them as

'ell. *he same @ractice, too, has Celieved to Ce a@@lied to other Crand of automotives in

the local maret.

Pa+e 7%


22/41

As a car manufacturer and distriCutor, P4/*/0 has Ceen aCle to satisfy its consumers in

@roducin+ cars that meet the minimum reEuirement at +eneric @roduct level and e@ected

@roduct level in terms of its @erformance, Euality, @rice and desi+n, 'hich allo' them to

com@ete 'ith others in the automotive maret.

7"7"2" P%(&$' O9 D(99ere&-e POD

Accordin+ to (eller 7##$?, @oint of difference P/D? refers to attriCutes or

Cenefits that consumers stron+ly associate 'ith a Crand, @ositively evaluate, and Celieve

that they could not find the same etent 'ith a com@etitive Crand. Some mareters in the

;estern mi+ht relate P/D as uniEue sellin+ @ro@osition USP?. Both of them carriedalmost the same character, 'hich allo's them to Ce different from rivals in terms of

uniEueness, Euality, @rice, etc.

P4/*/0 stands a stron+ P/D as it a@@ears to Ce the first national car manufacturer,

follo'ed Cy Perodua. *his has differentiated them from the various cars mareted in

Malaysia 'hom are solely forei+n manufacturers, ie tariff Carriers. *he hi+her im@ort

duty for forei+n @assen+er cars is Cet'een %6#>## @ercent, Cased on en+ine

dis@lacement. *hese @olicies have massive im@act on consumers, es@ecially those 'ho

are value>conscious and seein+ for a Euality and com@act cars at an affordaCle @rice.

!t is often not an issue in enEuire aCout such P4/*/0 cars 'ith its distriCution channel

throu+h the nation'ide dealers. P4/*/0 has successfully sustained its maret @osition

throu+h the su@@ort sho'n Cy its distriCution dealers as 'ell as the vendors and su@@liers.

As mentioned in its Financial 4e@ort 7##$?, Proton is clearly committed to enhancin+

Pa+e 77


23/41

efficiencies 'ithin its distriCution net'or. !nstead of dealershi@ 'ith various @arties,

P4/*/0 has invested in vendor>Cased system. *he system has enaCled P4/*/0 to

tae care of its second tier net'or Cy virtue of tierin+ system.

*o com@ete and distin+uish itself from other in the com@etitive automotive industry,

P4/*/0 stron+ly associates its Crand 'ith Coth the functional @erformance>related?

considerations and aCstract ima+ery>related? considerations.

P4/*/0 has em@hasiIed on its commitment to'ards carin+ and Euality Cy

incor@oratin+ them in its core value and Euality @olicy. P4/*/0Hs Euality @olicy is to

achieve its commitment, P4/*/0 'ill:>

1nsure Euality as the 0umCer /ne 'or ethics in all o@erations

1staClish an effective and efficient uality System Cased on the reEuirements of !S/

8##%:7##$ standards

Provide adeEuate sills and no'led+e to all levels of @ersonnel throu+h systematic

and structured trainin+ @ro+rammers

Provide a culture and environment of continuous learnin+, im@rovement and

innovation to'ards total Euality ecellence Provide a conducive, safe and healthy 'orin+ environment in 'hich @eo@le lie to

'or and @ros@er.


24/41

*he oCective of this maretin+ @lan is to recommend a Cusiness @ro@osition

'hich is measuraCle and attainaCle Cy firstly identifyin+ ProtonHs lon+>term +oal and

short>term +oal. ProtonHs lon+>term +oal is referrin+ to ProtonHs vision and core value

'hile its short term +oal refers to ProtonHs mission to achieve the oCectives. *he

oCective of the maretin+ @lan in short term is to introduce ne' conce@t car, Proton

1ora 7 Cy early of year 7#%% Cy develo@in+ maretin+ strate+ies and @lan.


25/41

term +oal is focusin+ on three main attriCutes that

distin+uish itself from its com@etitors as follo's :>

a E-%&%8(-a* @rovidin+ cars 'hich are affordaCle, cost efficient and value for

money

b Car(&)O @rovidin+ customer satisfaction and its social cor@orate res@onsiCility as a

truly Malaysian car manufacturer and to enhance its ustomer 4elationshi@

Mana+ement 4M?

- #a*($yO @rovidin+ a consistently im@roved @roduct and customer e@erience.

"ence, Cy introducin+ ne' conce@t car no'n as Proton 1ora 7, Proton e@ects

that it 'ill im@rove its maret share in the automotive industry and im@roves its ranin+

in future.


26/41

onsumers 'ho are loyal to P4/*/0 'ill tend to acce@t the ne' car innovations Cy

P4/*/0 and may choose to attach themselves 'ith P4/*/0 Cy oinin+ the

memCershi@ cluCs to +ain more information. "ence, the ne' Proton 1ora 7 car

innovations 'ould tend to Ce acce@ted Cy consumers 'ith stron+ Crand loyalty to'ards

Proton car.


27/41

success as a crediCle auto manufacturer. For eam@le, Proton 1ora has received an

encoura+in+ numCer of Cooin+s at the recently concluded *hailand !nternational Motor

1@o 7##8 in Ban+o. *he com@anyHs order Coos 'ere filled 'ith %,$$ Cooin+s

from a total of 7-,77# orders @laced at the 1@o. *he Proton 1ora, 'hich made its *hai

deCut at the sho' 'as the Cest sellin+ Proton model 'ith $7- Cooin+s, or almost )# @er

cent of total orders. *herefore, 'ith enhancin+ Proton 1ora eistin+ features Cy

introducin+ ne' conce@t car called Proton 1ora 7 'ith em@hasis on increasin+ fuel

efficiency, convenience and safety at com@etitive @rice, this 'ould Coost further Proton

sales and maret shares in the maret.

!n +eneral, Proton 1ora 7 tar+et maret and maret se+mentation can Ce summariIed as

follo's:

User status Family, house'ife, retirees etc

!ncome At least 4M7,### and aCove

A+e %$ on'ard

4ace All races

Family >) @eo@le

&ifestyle Medium to fairly hi+h class


28/41

formulation. Prior to the @lannin+ @rocess, Proton need to learns from the @ast records on

Proton 1ora @erformance, evaluatin+ the @resent condition and envisionin+ the future

maret.

*here are three @lannin+ @hases in value creation and delivery seEuence, 'hich could Ce

ado@ted Cy Proton in introducin+ Proton 1ora 7. *he first @hase is Cy Proton choosin+

the value Cy ado@tin+ strate+ic maretin+ via formula KSe+mentation, tar+etin+ and

@ositionin+L S*P?. !n second @hase of @rovidin+ the value, Proton 'ill determine its

s@ecific @roduct features, @rices and distriCution, 'hich the enhancement of the @roduct

features 'ill Ce discussed under @ossiCle solutions. *he third @hase is communicatin+ the

value of Proton 1ora 7 Cy utilisin+ the sales force, sales @romotion advertisin+ and other

communication tools to @romote Proton 1ora 7. *he third @hase sta+e 'ill Ce discussed

further under @romotion activities.


29/41

*herefore, in order to increase its com@etitiveness in the maret, our +rou@ has @ro@osed

for ne' innovation in fuel efficiency for ne' Proton 1ora 7 is to devote @art of its

4M-7- million 4=D to fuel efficiency increase and coo@erate 'ith Perodua on

im@rovin+ the technolo+y of fuel efficiency increase Geor+e (. haco, 7##)?. *hus,

Proton 'ill have more attractive cars Cy introducin+ ne' Proton 1ora 7 to maret via

ne' technolo+y on fuel efficiency introduced in the maret.

b Ne; (&/-ar '%9$;are app*(-a$(%& $% red#-e -arb%& d(%=(de CO2 e8(''(%&'

*he ne' innovation that Proton may introduced for its Proton 1ora 7 'ould Ce

soft'are a@@lication installed to reduced carCon dioide /7? emissions Cy ado@tin+

1coDrive technolo+y. 1coDrive is ne' technolo+y develo@ed 'ith Microsoft technolo+y,

'hich is the 'orldHs first device that interacts directly 'ith drivers and assist them in

chan+in+ their drivin+ haCits to reduce vehicle emissions and reduce fuel consum@tion.

1coDrive is Cuilt on Blue=Me, a Bluetooth>Cased system develo@ed ointly Cy Fiat and

Microsoft that @rovides drivers hands>free control over di+ital music @layers, moCile

tele@hones and other devices. For eam@le in Fiat cars eEui@@ed 'ith Blue=Me, the

1coDrive system assesses the driverHs drivin+ style durin+ a normal drivin+ day such as

the 'ay a driver accelerates, Craes, and shifts is automatically measured and analyIed

a+ainst the carHs fuel economy and ehaust emissions. /n arrivin+ home, the driver

removes a standard USB flash drive from a USB @ort on the dashCoard or the +love

com@artment, @lu+s it into a com@uter and do'nloads information on the recent drivin+

ecursion. A soft'are a@@lication then tells the motorist ho' many ilo+rams of

emissions the car @roduced durin+ the most recent drive and @rovides recommendation

for driver to reduce those emissions Cy drivin+ in a more environmentally friendly 'ay

Cy consumin+ less fuel.

"ence, 'ith the introduction of 1coDrive technolo+y in Proton 1ora 7, this 'ill assist in

reducin+ the /7 emission Cy %# to 7# throu+h Cetter drivin+ haCits and @osition

Proton 1ora as environmental friendly car @roducers in Malaysia.

- C%&e&(e&-e a&d 'a9e$y

Pa+e 78


30/41

Proton 1ora 7 could im@lement fe' innovations usin+ the latest car technolo+y

for convenience and safety as follo's :>

A#$%8a$(- Par(&)

;ith the latest car technolo+y enaCles automatic @arin+, the system is aCle todetect a s@ace Ci+ enou+h for vehicle to sEueeIe into a ro' of @ared cars.

Pre/'-a& $e-,&%*%)y

Pre>scan technolo+y sho'n Cy lasers scans the road surface Cefore the car drives

over it. *his @re@ares the sus@ension to react to the terrain accordin+ly and ensures

@eerless ride comfort. *his technolo+y 'as sho'cased in the Mercedes F9## conce@t.

C%**('(%& @ar&(&) y'$e8:

ollision ;arnin+ system, 'hich uses radar technolo+y 'ith a 'ide>an+le search

area to detect oCects in front of and around the car. !f the car a@@roaches a @edestrian,

a red 'arnin+ li+ht comes on the 'indscreenJs head>u@ dis@lay and a 'arnin+ si+nal

sounds. *his hel@s the driver to react and in most cases avoid an accident. !f the ris

of a collision increases, assisted @anic Crain+ is activated automatically to @rovide

more @ressure 'hen the Craes are a@@lied. ;ith this technolo+y ado@ted Cy Proton

1ora 7, this 'ill reduce the numCer of accident in Malaysia. *his technolo+y has

Ceen develo@ed Cy S'edish car maer 3olvo.

Ve,(-*e $% Ve,(-*e Te-,&%*%)y

*his hi>tech system is Cein+ develo@ed Cy General Motors and uses 'ireless

technolo+y to allo' a driver in one car to receive information from another car further

ahead on the same road. *his system 'ould allo' the other driver to receive this

information in sufficient time to react and therefore avoid any accident. *his system

could also 'or 'ell 'ith the emer+ency services, alertin+ all drivers on the

interlined 373 technolo+y that an amCulance 'as a@@roachin+ and from 'hich side.

6 RECOMMENDATION IMP4EMENTATION

6"1"1 A-$(%& P*a&/ Mare$(&) M(=e'

Pa+e #


31/41

6"1"1"1 Pr%d#-$

P4/*/0 "oldin+s Berhad has commands a suCstantial maret share in terms of the

Malaysia automoCile industry, @articularly @assen+er cars. Addin+ to the @ortfolio, the latest

9>seater MP3, ne' conce@t 1ora 7 is introduce.

PROTON Car M%de* M%de* Ta) 4(&e P%r$9%*(% C,ara-$er('$(-'

1ora 7 5ouHll Ce AmaIed -

(erian+an (eluar+a

> Malaysia firsthome+ro'n MP3

> !deal family vehicle

From the @ossiCle solution, the ne' 1ora 7, this includes @o'erful amPro PS @o'ertrain

as 'ell as technolo+ically advanced Ci>enon headli+hts 'ith !ncrease Fuel 1fficiency, 0e'

in>car soft'are a@@lication to reduce carCon dioide /7? emissions and also 'ith

im@lemented fe' innovations usin+ the latest car technolo+y for convenience and safety such

as automatic @arin+, @re>scan technolo+y, collision 'arnin+ system and vehicle to vehicle

technolo+y. omCined 'ith other luurious interior items such as leather seats and +ated +ear

shifter. *he ne' im@rovement features lie ho' to im@rove on Euality of front 'i@er sound,

aCsorCer sound and so on.

6"1"1"2 Pr(-e

Pricin+ is an im@ortant strate+ic issue for P4/*/0 "oldin+s Berhad Cecause it is very

much related to @roduct @ositionin+. Furthermore, @ricin+ for P4/*/0 car 'ill eventually

affects other maretin+ mi elements such as @roduct features, distriCution channel decisions

and the a++ressively @romotions held nation'ide. Pricin+ oCectives has Ceen set and it is

clear that P4/*/0 "oldin+s Berhad is marchin+ to'ards the direction of @rofit

maimiIation, looin+ at the etensive @roduct develo@ment and @roduct refreshment over

the time.

*he @rice of the car often determines the classification of various car models Cy P4/*/0.

*he @roduct @rices are seemin+ly Cecome com@etitive 'hen com@etitor manufacturer, for

instance, Produa 'ith the 0e' launch MP3 AlIa in year 7##8 and *oyata 'ith its MP3

*oyota AvanIa, try to match a lo'er maret @rice to seiIe the local customer se+mentations.

Pa+e %


32/41

Generally consumers feel that the @rices of P4/*/0Hs @roducts are affordaCle as com@ared

'ith other Crands in the cate+ory 'ith 'hich it com@etes. For 1ora 7, the retail @rice is

remainin+ same @rice as @revious version. *hese cost leadershi@ strate+ies 'ill stron+ im@act

to dra' customer attention.

M%de*' Pr(-e 4('$

E=%ra 2 5r%8 RM


33/41

@rint advertisement carryin+ the ta+line T5ouHll Ce AmaIed> (erian+an (eluar+a. For

1ora 7, 'e 'ill enhance more 'ith the same ta+ line a+ain and add on additional ne'

and im@roved @roduct features.

From the conce@t of advertisement layout, the contin+ency you may find that P4/*/0

is @uttin+ si+nificant em@hasiIes on its car UniEue Sellin+ Pro@osition USP?. As for the

television commercial, *he 1ora 7, must successfully @ortrayed the slee desi+n and car

@erformance for the ne' im@rovement feature 'ith ne' additional features. *hat 'ill

very much hel@ on the retail car sellin+ @rice of the 1ora 7.

II. Sales Promotion

As for P4/*/0 "oldin+s Berhad, they have desi+ned sales @romotions from time to

time in order to ca@ture the attention of local consumers. *hese im@ressive sales

@romotions often success 'hen P4/*/0 uses Coth the @rice>cut and value>added ty@e

of @romotional desi+ned. For instance, P4/*/0 2han+e @ro+ramme allo's the

consumers to trade>in their P4/*/0 car 'ith additional 4M-,### to o'n a Crand ne'

of 1ora 7.

"o'ever, P4/*/0 "oldin+s Berhad usually en+a+ed the consumers 'ith their

customer franchise Cuildin+ @romotions lie car>testin+, demonstrations and noncustomer

Pa+e

a*e' Pr%8%$(%&' e**(&) P%(&$'Drive for ash ash 'ill Ce +iven to the lucy>dra' of

ne' P4/*/0 car o'ner

P4/*/0 2han+e /ld P4/*/0 car o'ner to trade>in their

car 'ith an additional 4M-,### cash

voucher to @urchase a ne' P4/*/0 car


34/41

franchise Cuildin+ @romotions such as @remiums. *hese @romotional items 'ill

someho' enhance the attitudes and loyalty of consumers to'ards P4/*/0 and

eventually 'ill affect its Crand eEuity.

III. Event Marketing and Sponsorship

As a main s@onsor in the maor s@orts event in Malaysia, P4/*/0 "oldin+s Berhad has

actively involved in en+a+in+ the @uClic 'ith the events they s@onsored. By Cein+ the

s@onsor for these events, P4/*/0 "oldin+s Berhad 'ill Ce aCle to enhance their

cor@orate ima+e dimensions. *his ste@ is a soft sell and a means to im@rove the @uClic

@erce@tions that is reliaCle, social>conscious, etc. *he consumers are e@ected to credit

P4/*/0 and favour it in their @urchase decision on the cars.

For 1ora 7, 'ith the current s@onsorshi@ event availaCle for P4/*/0 is many, that 'ill

easy to @romote for 1ora 7 'ith advertisin+ @ro+ram 'hich collaCorate 'ith ri+ht events

lie Formula % motors@orts at se@an+, A% race motors@orts, P4/*/0Hs FootCall luC to

Pa+e 6

p%r$' Ee&$'

> &e *our de &an+a'i

> >year s@onsorshi@ for A%>*eam Malaysia

> P4/*/0Hs FootCall luC to @lay in the Malaysian Su@er &ea+ue

> P4/*/0 Malaysia Su@er Series Badminton *ournament

> Malaysian /@en Bo'lin+ ham@ionshi@

> ;orld 4ally Su@er7### in 7##$

> Formula % Se@an+ ircuit

> &otus *eam> Formula % in 7#%#

%-(a*/-a#'e' Ee&$'

> TPro+ram P!0*A4H Cy ado@tin+ 7 schools near *anun+ Malim, Pera

> P4/*/0 Di@loma in 1n+ineerin+ under Ministry of "i+her 1ducation

> Malaysian Sills om@etition for the AutomoCile Sector

> Malis Anu+erah (ecemerlan+an Aademi P4/*/0 for children of em@loyees


35/41

@lay in the Malaysian Su@er &ea+ue, P4/*/0 Malaysia Su@er Series Badminton

*ournament, &e *our de &an+a'i and so on to reach the tar+et maret.

IV. P!li" Relations and P!li"ity

PuClic relations is the mana+ement function 'hich evaluates @uClic attitudes, identifies

the @olicies and @rocedures of an or+aniIation 'ith the @uClic interest, and eecutes a

@ro+ram of action and communication? to earn @uClic understandin+ and acce@tance.

*he role of @uClic relations is often relate the clients, here refers to P4/*/0 "oldin+s

Berhad, 'ith its +eneral @uClic, customers, stocholders, su@@liers and em@loyees. *he

tools usually involved @ress releases, @ress conferences, eclusives, intervie's,

community involvement and lastly the !nternet.

V. Intera"tive # Internet Marketing

;ith the advancement in the information technolo+y, P4/*/0 "oldin+s Berhad

'ith its official 'eCsite, '''[email protected], has mana+ed to ca@ture the maret share.

!nteractive maretin+, @articularly, allo's a 7>'ay communications as com@ared to the

traditional forms 'hich are only one>'ay.

For the 1ora 7 cam@ai+n, customers can sim@ly lo++in+ onto the 'eCsite'''.@roton>

edar.com.my to do activities for searchin+, alterin+ information, inEuires and res@onses to

Euestions and to a@@ly for hire @urchase transaction 'ith P4/*/0 ommerceHs e>

Finance system are immediately advised as to 'hether their a@@lications have Ceen

reected or conditionally a@@roved, suCect to the suCmission of relevant su@@ortin+

documents.

P4/*/0 "oldin+s Berhad has also inte+rated 'eC strate+ies 'ith other as@ects of !M

@ro+rams, i.e. media advertisin+. Media advertisin+ in P4/*/0Hs 'eCsite to the internal

advertisin+ in the 'eC @ortal, such as @o@>u@ flyer and interactive >D flash for different

car models. *hese advertisements 'ill create a different visual e@erience to the online

vie'ers as com@ared to the conventional media.

6"1"2 I8p*e8e&$a$(%& / Ca8pa()& 5*%;-,ar$Ga&$$ C,ar$

Pa+e -
http://www.proton.com/http://www.proton.com/


36/41

*he schedulin+ of the !M efforts is Cased on a Fli+htin+ Method 'hich em@loys a less

re+ular schedule 'ith intermittent @eriods of advertisin+ and non>advertisin+. At some

@hase, there 'ould Ce heavier @romotional e@enditures and at other times, there may Ce

no advertisin+ cost incurred at all. Advertisin+ may increase durin+ certain @eriods such

as F% motors@ort event in se@an+, P4/*/0 Malaysia Su@er Series Badminton

*ournament, Malaysian /@en Bo'lin+ ham@ionshi@.

*he am@ai+n Flo' chart Gantt chart is sho'n in A@@endi.

6"1"3 Ea*#a$(%&/ Mea'#re' %9 E99e-$(e&e''

As this cam@ai+n is a short term cam@ai+n i.e. over % year, 'e are @ro@osin+ the

follo'in+ measurement evaluation:

0o. Promotion Mi Measurement Goals

%. Advertisin+ on television,

radio, ma+aIines,

ne's@a@ers, @oster CillCoards

*o determine the effectiveness, there is a need to

conduct a survey Cy en+a+in+ @rofessional maret

research firms such as Synovate, A 0ielson, etc."o'ever, as 'e are only advertisin+ on a small scale

and each @rinted ad eclude @oster CillCoard? comes

'ith a cou@on for discount, 'e 'ill measure the

success rate Cased on the cut out cou@ons received.

7. Sales @romotion O durin+

festivities or s@ecial

occasions

Based on the numCer of s@ecial @romotional sets

sold or numCer of @atrons durin+ the event, etc.

. !nternet !nteractive

Maretin+

*he effectiveness is Cased on the numCer of traffic

+enerated on the 'eCsite throu+hout the cam@ai+n

@eriod.

0ote :

1ffect of event s@onsorshi@ and P4 related events are hard to measure as it is intended toCuild a @ositive ima+e for Proton and does not insti+ate immediate res@onse to sales.

Aside from this Proton also conducts its o'n in house survey form as attached? to +au+e

the level of satisfaction, source of a'areness etc.

6"1"7 Re-%88e&da$(%&'

Pa+e )


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/ur recommendations are tryin+ to address the @erformance functional

characteristics? and ima+ery symColic characteristics? issues ne+atively affectin+ overall

P4/*/0Hs @roduct Crand ima+e at the moment. P4/*/0 has sho'n many

im@rovements recently, ho'ever, it has yet to stron+ly im@rove the consumersH

@erce@tion to'ards the Crand. !t is ho@e that 'ith the aCove recommendations, it can hel@

to enhance further its effort in stren+thenin+ is Crand ima+e and values

a" I8pr%e per9%r8a&-e

4ecommendations to im@rove @erformance 'ill Ce focused on the @roduct attriCutes and

Cenefits 'ith the aims to enhance drivin+ e@erience and Cuild Crand @ersonality. *hese

recommendations are mainly Cased on feedCacs freEuently mentioned Cy the 'eCsite

res@ondents '''.motortrader.com.my?.

( E&)(&e

Generally consumers feel that P4/*/0 car is under @o'er. *his is due to the en+ine

used. For a car, en+ine is the maor or critical @art of the @roduct, it is resemCle the heart

of a human Cein+. *herefore, to @roduce a car 'ith @remier Euality, @riority must Ce

+iven to its en+ine.

!n this area 'e recommend P4/*/0 to seriously invest in 4=D and technolo+y, and

e@edite its effort in develo@in+ strate+ic @artners to stren+then Euality, manufacturin+

and no'>ho' 'hich they are unaCle to do it themselves. P4/*/0 may have invested in

its technolo+y ho'ever, its efforts in this area seem insufficient. onsumers e@ect it can

@rovide a Cetter technolo+y, for instance Perodua offered its D33* en+ine, Cut P4/*/0

has continued usin+ its AMP4/ en+ine for all the cars for decades. !n this re+ard, 'e

recommend considerin+ @artnerin+ or oint venture 'ith those re@utaCle en+ine

manufacture, such as manufacturer from 1uro@e country BM;, MercedeI, 4enault or

Peu+eot? or


38/41

the com@artments es@ecially its dashCoard area start to @roduce uneasy noise, and the

sound @rove of the car is @retty @oor es@ecially on hi+h s@eed drivin+. *hrou+hout the

years, there is not much im@rovement in this area 'hich can ;/; the consumers. !n

fact, all these features 'ill hel@ to create drivin+ e@erience. !nterior desi+n 'ith

aesthetic features and +ood sound @rotection 'ill mae a driver feels oy and ecited thus

creatin+ a stron+ @ositive drivin+ e@erience.

((( B%dy 9ra8e

*he net consumer @erce@tion that P4/*/0 should address is the structure of its

@roducts in terms of solidity. Generally consumers thin that its Cody frame is very

vulneraCle, 'hen they are drivin+ the car at hi+her s@eed, they feel it is li+ht and have a

sense of floatin+ and unsafe. Althou+h have Ceen im@roved for model lie Pesonna,

1ora Cut that still achieved customer satisfaction level. *o im@rove this area, a+ain

investment in 4=D is almost im@ortant. ;e recommend P4/*/0 to seriously study the

chan+e of material. An alternative 'ill Ce 'orin+ 'ith @artners or oint venture 'ith

com@any s@ecialiIed in frame manufacturin+.

( E=$er(%r De'()&

1terior desi+n is the ey @roduct attriCute that @lays an im@ortant role in enhancin+

the overall @roduct Crand ima+e. ;e 'ill loo at P4/*/0 eterior desi+n in terms of:

Sha@eMany feel that the overall desi+n of P4/*/0 is not uniEue enou+h. P4/*/0

must invest in Cuildin+ its creativity and innovative on it to have o'n

characteristic outloosha@e of @roduct Crand ima+e.

olor

Product color the ran+e offered Cy P4/*/0 +enerally not attractive or uniEue.

As one of its core values is customer focus, 'e recommend P4/*/0 to Ce really

customer oriented, no'in+ 'hat the customers 'ant and offer the ran+e of colors

that a@@eal to different maret se+ment effectively.

b" 5%-#'ed %& er(-e E=-e**e&-e

"o'ever, havin+ all those functional and symColic characteristics 'ill not do

P4/*/0 Crand any +ood if it doesnHt offer ecellence after>sales service to ensure that

P4/*/0 continues to Ce the @referred choice for those 'ho @urchase cars from them. !t

Pa+e $


39/41

is encoura+in+ to see P4/*/0 has Ceen stren+thenin+ their customer touch @oints,

es@ecially in creatin+ a more friendly a@@roach to'ards customer care Cy introducin+ its

i.are, a customer mana+ement centre totally dedicated to the needs of their customer

'hich is im@ortant in Crand Cuildin+ and earn trust from customers.

CONC4UION

P4/*/0 as the first Malaysian car manufacturer has estaClished a very stron+ identification in

the Malaysia automotive maret. "o'ever, the consumers @erceived that it has not delivered

'hat is @romised and e@ected. As a result, P4/*/0 is unaCle to create @ositive res@onse in the

head and heart of its consumers. P4/*/0 still has tremendous @otential and ca@acity to @erform

Cetter in offerin+ its customers @roducts and services of @remier Euality.

*he ne' conce@t of Proton MP3 1ora 7, is ho@e that the enhanced and ne' Crand ima+es and

recommendations 'ill Ce aCle to hel@ P4/*/0 estaClish a @ositive res@onse in the consumersH

memory 'hich 'ill lead the com@any to achieve its vision of Cecomin+ a &ife om@anion for its

consumer. *his 'ill eventually enhanced and stren+then it sources of Crand eEuity in order to

com@ete ahead.

Based on its recent @erformance, P4/*/0 has indeed 'orin+ very hard to live u@ its 'orin+

@hiloso@hy of @roducin+ the ri+ht car at the ri+ht time, for the ri+ht maret, at the ri+ht @rice.

Pa+e 8


40/41

RE5ERENCE

%. P4/*/0Hs Annual 4e@ort 7##8.7. (otler, P. and (eller, (.&. 7##8?. #ar$etin% #ana%e!ent (pp &' ))*+," 0e' 0e's>ArchiveArticle7##$#)6%#7)79

.

Pa+e 6#
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.aspxhttp://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://news.sky.com/skynews/Home/Sky-News-Archive/Article/20080641302627http://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://www.microsoft.eu/Stories/Viewer/tabid/77/articleType/ArticleView/articleId/330/Menu/8/A-new-in-car-software-application-helps-drivers-reduce-CO2-emissions.aspxhttp://news.sky.com/skynews/Home/Sky-News-Archive/Article/20080641302627


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