Marketing Strategy Free Essay Example
Marketing Strategy Free Essay Example

Marketing Strategy Free Essay Example

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Proton, the Malaysian national car company, had been the market leader in the Malaysia automobile market since its establishment in 1983. However, Proton's market share has significantly declined from 74% in 1993 to 32% in 2006, allowing Perodua to become the country's largest passenger carmaker with a 40% market share (Angus Whitley, 2007). Additionally, Proton's brand value has also witnessed a decrease from RM239 million in 2007 (ranked 19) to RM150 million in 2008 (ranked 23). On November 23, 2009, it was reported that Proton was no longer included in Malaysia's 30 Most Valuable Brand (MMVB) ranking (Staff Writer, 2009). Consequently, it is crucial to implement an effective marketing strategy.

Proton, a product established 25 years ago by Tun Mahathir Mohamad as part of a national industrialization plan, has faced criticism for its poor quality and unimpressive design. One major issue plaguing P

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roton is its lack of quality control. Throughout the years, the public has often voiced their complaints about the subpar quality of Proton vehicles. These complaints commonly revolve around problems with power windows, doors, and alarm systems (National Consumer Complaints Centre, 2012).

Despite being seen as a manufacturer of affordable cars that lack excitement compared to Japanese or South Korean makes, Proton faces concerns over the quality of their vehicles. Although Proton's cars are relatively cheap, people prioritize safety over price. Ensuring high-quality cars is a key ethic in all of Proton's operations, but there are evident issues with car quality. Additionally, meeting safety and environmental standards in the target market is a crucial strategy that Proton should be mindful of.

Currently, the European market places a greater emphasis on passenger safety and the environmental impac

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of products. An instance of this is Proton's failure to enter the US market due to the extensive changes needed to comply with legislative requirements. Additionally, Proton's export models do not fully adhere to environmental and safety standards, including emission limits and Euro NCAP safety testing (Slideshare. et, n. d.).

The Proton Exora is currently Proton's main car that meets Euro NCAP safety testing. In 2009, it received a 4-star rating according to Paul Tan. Therefore, ensuring the quality of Proton's products is crucial for the company as any decrease in quality will indirectly impact its financial performance. This can be seen through declining sales, continuous loss of market share, and significant erosion of profit margins. Furthermore, Proton exclusively depends on one distributor in Malaysia named Proton Edar Sdn when it comes to distribution.

Bhd. According to the National Consumer Complaints Centre (2012), there was a consumer complaint about the delayed delivery of a car, resulting in the buyer having to wait for a month to receive it. This delay highlights a limitation in Proton's distribution coverage in Malaysia, as having only one distributor prevents them from fully servicing all areas. As a consequence, Proton may not be able to fulfill their commitment of delivering "the right car for the right market, at the right price and at the right time". Currently, Proton cars are the most affordable options available in Malaysia.

Proton Inspira is priced at RM78999, while Honda Civic is priced at RM 114980 (Proton Edar; Honda Malaysia). According to research, Proton Inspira has sold 8028 units year to date, compared to Honda Civic's 6121 units. Products| Sales unit| Proton Inspira| 8028| Honda Civic| 6121| Driven

Media Sdn Bhd,2012 (http://paultan. org/2011/12/08/maa-vehicle-sales-data-for-october-2011/) Promotion Proton has conducted numerous service campaigns, known as Proton Star. These campaigns include customer-focused initiatives such as a 43-point check and discounts on spare parts. For example, the Proton Exora features a print advertisement with the tagline 'You'll be Amazed - Keriangan Keluarga'.

Proton company creates sales promotions periodically to attract local consumers. These promotions are successful when Proton combines price cuts and value-added elements. An example is the Proton XChange program, where customers can trade in their Proton car and receive an additional RM5000 to purchase a new Exora 2 (Slideshare. et, n. d.).

). In addition, Proton had previously organized a car naming contest to instill Malaysian pride. Proton has also sponsored world events such as FIFA/Coca Cola IXth World Youth Club, 34th International Youth Skill Olympics, Motor Rallying Activities, and the Malaysia Thomas Cup team to restore badminton glory (EssayMania. com, 2010). In our opinion, Proton should not engage in excessive promotion to raise awareness as every Malaysian already knows about Proton very well.

This is because Proton is a national car maker. Here are some references to support this claim:

  1. Angus Whitley, 2007, ‘Proton Posts Loss as Sales Slump to Lowest in 7 Years (Update 2)’, online, date accessed 17th September 2011, available from: http://www.bloomberg.com/apps/news?pid=newsarchive;sid=axpaLGflllBA;refer=asia.
  2. Staff Writer, 2009, ‘MMVB: Proton Drops Out, Public Bank Tops’, online, date accessed 4th February 2012, available from: http://www.marketing-interactive.com/news/16539.
  3. National Consumer Complaints Centre, 2012, ‘Complaints- Proton Persona’, online, date accessed 6th February 2012, available from: http://www.nccc.org.my/v2/index.php/aduan-pengguna/arkib-2009/134-vehicles/1252-complaints-proton-persona.
  4. Slideshare.net, n.

The Marketing Plan for Proton can be found online at this link: http://www.slideshare.net/mandalina/marketing-plan-proton. It was accessed on the 17th of September, 2011.

Videos of crash testing for the Proton Exora have been shared by Paul Tan. These videos can be viewed online at the following link: http://paultan.org/2009/04/17/proton-exora-crash-testing-videos. The date of access is noted as the 6th of February, 2012.

Complaints regarding deep dissatisfaction with the services provided by Proton Malaysia have been documented by The National Consumer Complaints Centre. More information can be found online at this link: 1301-complaints-deep-dissatisfaction-with-the-services-of-proton-malaysia. This information was accessed on the 6th of February, 2012.

Slideshare also provides additional resources related to Proton.

net, n.d., ‘Marketing Plan: Proton’, online, date access 17th September 2011, available from: http://www.slideshare.net/mandalina/marketing-plan-proton.

The Malaysia car industry information can be found at EssayMania.com. It was published in 2010 and is available online. The source can be accessed at http://freeessaycollection.com/essay-samples/837-malaysia-car-industry.html, with the date of access being September 17th, 2011.

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