Proton distribution channel

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FACULTY OF COMPUTING AND BUSINESS MANAGEMENT

image8.pngVila College

BMMK 5103

MARKETING MANAGEMENT

ASSIGNMENT

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Marketing Plan

Date Assigned: 24tt' September 2011

Due Date: 20th November 2011 before 9:O0pm)

Lecturer: Mr.Hamid Sodique

Prepared by: Imad Mohamed

Acknowledgement

First of all I would like to thank God as I am able to finish this assignment given by Mr.Hamid Sodique, lecture of the Module: Marketing Managemnet. This task cannot be completed without guidance and continued support of from lecture. Therefore I would like to take this opportunity to tank lecture, Mr.Hamid Sodique for his guidance for and explanation of the subject, and kind extension of deadline for submitting the assignment.

This task has been done with the help of and discussion with colleague students of the class, and I would address big thanks to all fellow students.

I am a civil servant having heavy workload especially during the time at which budget process is government beginning. My studies and work towards this assignment is completed because of the flexibility and support given by my office management and staff as well. I recognized the support of office management and thanks management of Department of National Planning and Ministry of Finance and Treasury.

Finally I thanks to my beloved family and friends that always stick together and also work hard to produce good assignment.

Contents

2EXECUTIVE SUMMARY

31. INTRODUCTION

31.2 AUTO INDUSTRY IN GENERAL 2009

41.2 COMPANY BACKGROUND

51.3 MISSION

61.4. CORE VALUES OF THE COMPANY

64.5 TARGET MARKET

62. CURRENT MARKETING SITUATION

62.1 MARKET OVERVIEW

92.2 PRODUCTS

122.3 MARKET CHARACTERISTICS AND FORECASTS

122.4 PRODUCT DESIGNING

122.5 DISTRIBUTION AND PRICING TRENDS

122.6 IMPORT POSITIONING

132.7 MARKET SEGMENTS AND TARGET MARKET BEHAVIOR

133. EXTERNAL ANALYSIS

143.1 PEST ANALYSIS

143.1.1 POLITICAL FACTORS

153.1.2 ECONOMIC FACTORS

152.1.3 SOCIAL FACTORS

153.1.4 TECHNOLOGICAL FACTORS

163.2. COMPANY INTERNAL ANALYSIS

163.2.1 STRENGTH

173.2.2 WEAKNESSES

173.2.3 OPPORTUNITIES

173.4 THREATS

184. COMPETITOR ANALYSIS

184.1 THREATS OF NEW ENTRY

184.2 HREAT OF SUBSTITUTION

184.3 BUYER POWER

184.4 SUPPLIERS POWER

184.5 COMPETITIVE RIVALRY

195. MARKETTING STRETEGIES

195.1 MARKETING OBJECTIVE

195.2 MARKET SEGMENTATION

205.3 LAUNCH OF NEW PRODUCTS

205.4 TARGET MARKETS

205.5 MARKETING MIX

205.5.1 PRODUCT

215.5.2 PRODUCT DEVELOPMENT

215.5.3 PRICE

225.5.4 PROMOTION

235.5.6 PLACE

236. ACTION PLAN- MARKETING MIXES

236.1 PRODUCT

246.2 PRICE

246.3 PLACE / DISTRIBUTION CHANNEL

246.4 PROMOTION

246.4.1 ADVERTISING

256.4.2 SALES PROMOTION

256.4.3 EVENT MARKETING AND SPONSORSHIP

266.4.4 PUBLIC RELATIONS AND PUBLICITY

266.4.5 INTERACTIVE / INTERNET MARKETING

267. IMPLEMENTATION SCHEDULE OR TIME LINE

268. PROJECTED PROFI & STATEMENT (2012-2015)

269. EVALUATION- MEASURES OF EFFECTIVENESS

2710. CONCLUSION

29REFERENCE

EXECUTIVE SUMMARY

PERUSAHAAN OTOMOBIL NASIONAL BERHAD or PROTON was incorporated on May 7, 1983 to manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and other components. PROTON produced Malaysia’s first car, the Proton SAGA which was commercially launched on July 9, 1985 by Malaysian Prime Minister, Dato’ Seri Dr. Mahathir Mohamad who conceived the idea of a Malaysian car.

As the first Malaysian car manufacturer PROTON has well-known a very strong credentials in the Malaysia motorized market. However, the customers seeming that it has not supplied what is guaranteed and anticipated by them. As a result, PROTON is incapable to create optimistic response in the head and heart of its customers. PROTON still has wonderful prospective and capability to accomplish superior in offering its customers products and services of highest quality.

The new concept of Proton Inspira 2.0 is hope that the enhanced and new brand images and recommendations will be able to help PROTON establish a optimistic response in the customers’ memory which will lead the company to achieve its vision of becoming a Life Friend for its consumer.

Based on its recent performance, PROTON has indeed working very hard to live up its working philosophy of making the right car at the right time, for the right market, at the right price.

Possible solutions to mitigate the problems identified are by introducing additional value improvised features to enhance the performance and sales of Proton Inspira2.0 by focusing on fuel efficiency, convenience and safety and emphasizing on the environment friendly vehicle. 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.

1. INTRODUCTION

1.2 AUTO INDUSTRY IN GENERAL 2009

Production in the automotive industry in Malaysia can be considered the most important and strategic industry. Industry deregulation and imports from Japan, Korea and China with strong regional brands at affordable prices, car establishment, to enhance their competitiveness. About 90 percent of cars sold in Malaysia as the Malaysian automotive industry plays an important role in the development of local production, the local producers that are made of protons and Perodua. One of the major factors of market to grow significantly in the automotive industry in Malaysia offered to help the auto industry is technological developments in the production stages. the global crisis, the rise in oil prices has also affected the sales of Malaysian automobiles. Increasing interest rates and rising oil prices also impacted vehicle sales in Malaysia, caused sales of protons, as shown, to reduce consumers' purchasing decisions, and definitely affect the sales volume.

Long term expectations are high for the small car segment, as the MAA envisages a shift towards more fuel-efficient cars. Even though there was a slow growth in 2010, sales of new cars reported a positive annual growth returned. Long-term expectations are high for the small car segment since the MAA provides a shift toward more fuel efficient cars.

1.2 COMPANY BACKGROUND

PROTON produced Malaysia’s first car, the Proton SAGA which was commercially launched on July 9, 1985 by Malaysian Prime Minister, Dato’ Seri Dr. Mahathir Mohamad who conceived the idea of a Malaysian car.

PROTON was publicly listed on the Kuala Lumpur Stock Exchange (KLSE) in 1992 and its shareholders include Khazanah Nasional Berhad, Petroliam Nasional Berhad, Mitsubishi Corporation, Mitsubishi Motors Corporation, Employee Provident Fund Board and other local and foreign investors. Proton Holdings Bhd has swung into the black in 2008 with a cumulative net profit of RM202.9 million, compared with the loss of RM589.5 million it registered in 2007. PROTON aims to have a strong product portfolio by introducing “the right car, for the right market, at the right price and at the right time”. PROTON has also continued to update and refresh existing product lines to entice and attract customers.

1.3 MISSION

Proton’s mission in its short-term goal is focusing on three main attributes that distinguish itself from its competitors as follows:-

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

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

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

Hence, by introducing new concept car known as Proton Exora 2, Proton expects that it will improve its market share in the automotive industry and improves its ranking in future.

1.4. CORE VALUES OF THE COMPANY

CORE VALUES

DESCRIPTION

Quality

We make products that work the first time, every time.

Customer focus

Customers are the source of our income. We deliver on our promises to our customers’ satisfaction.

Innovation

We challenge convention, always seeking new and better ways of doing things. We view change as opportunity.

Teamwork

We trust, respect and share knowledge to foster teamwork at the workplace.

Speed

We have a “can do” attitude and will not rest until the problem is solved. We have an inherent sense of urgency in everything we do.

Caring

As a responsible corporation citizen, we invest in safety, health and the environment.

Sources: PROTON Annual Report 2009 – Proton’s Core Value

4.5 TARGET MARKET

The process in identifying the consumer target for new Proton Exora 2 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.

2. CURRENT MARKETING SITUATION

2.1 MARKET OVERVIEW

Once known as the king of the road, PROTON has seen its fortunes dwindle due to growing competition from local and foreign competitors as Malaysia opens up its auto market. Malaysia is Southeast Asia's largest passenger car market with 497,459 vehicles sold in the year 2008. Malaysia’s auto market is dominated by its national cars, PROTON and Perodua which in year 2000 accounted for market share of roughly 90 percent of the vehicles sold annually. Some 25 other manufacturers compete for the remaining 10 percent. But compare with last 2 years, market share of the national car makers has declined to roughly 63 percent.

During year 2000, PROTON conquered 63.4 per cent market share. It has eroded to below 30 percent in year 2007 and 2008. Perodua, the second national cars manufacturer has taken over the market of the king since two years ago with a market share of 33.6 percent in 2008.

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Figure 1: Show the Overall market share of passenger car market. (from MAA vehicle sales resources) Noted : 2006 data is not published

Although government has cut import taxes, it still imposes high taxes on locally assembled foreign cars and this has given protection to national carmakers.

In terms of financial performance, for the financial year ended 31 March 2009, PROTON recorded a loss after tax of RM301.8 million, although there was improved revenue of RM6.5 billion.

Malaysia - sales of vehicles by make, 2010 and 200