FACULTY OF COMPUTING AND BUSINESS MANAGEMENT

Vila College

BMMK 5103
MARKETING MANAGEMENT
ASSIGNMENT

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
EXECUTIVE SUMMARY................................................................................................. 2

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1. INTRODUCTION....................................................................................................... 3
1.2 AUTO INDUSTRY IN GENERAL 2009...................................................................3
1.2 COMPANY BACKGROUND...................................................................................4
1.3 MISSION............................................................................................................. 5
1.4. CORE VALUES OF THE COMPANY......................................................................6
4.5 TARGET MARKET................................................................................................ 6
2. CURRENT MARKETING SITUATION...........................................................................6
2.1 MARKET OVERVIEW........................................................................................... 6
2.2 PRODUCTS......................................................................................................... 9
2.3 MARKET CHARACTERISTICS AND FORECASTS.................................................12
2.4 PRODUCT DESIGNING...................................................................................... 12
2.5 DISTRIBUTION AND PRICING TRENDS..............................................................12
2.6 IMPORT POSITIONING...................................................................................... 12
2.7 MARKET SEGMENTS AND TARGET MARKET BEHAVIOR.................................13
3. EXTERNAL ANALYSIS............................................................................................. 13
3.1 PEST ANALYSIS................................................................................................ 14
3.1.1 POLITICAL FACTORS..................................................................................14
3.1.2 ECONOMIC FACTORS................................................................................. 15
2.1.3 SOCIAL FACTORS....................................................................................... 15
3.1.4 TECHNOLOGICAL FACTORS........................................................................15
3.2. COMPANY INTERNAL ANALYSIS.......................................................................16
3.2.1 STRENGTH................................................................................................. 16
3.2.2 WEAKNESSES............................................................................................ 17
3.2.3 OPPORTUNITIES......................................................................................... 17
3.4 THREATS....................................................................................................... 17
4. COMPETITOR ANALYSIS......................................................................................... 18

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4.1 THREATS OF NEW ENTRY.................................................................................18

4.2 HREAT OF SUBSTITUTION................................................................................18
4.3 BUYER POWER............................................................................................... 18
4.4 SUPPLIERS POWER.......................................................................................... 18
4.5 COMPETITIVE RIVALRY..................................................................................... 18
5. MARKETTING STRETEGIES.................................................................................... 19
5.1 MARKETING OBJECTIVE................................................................................... 19
5.2 MARKET SEGMENTATION.................................................................................19
5.3 LAUNCH OF NEW PRODUCTS...........................................................................20
5.4 TARGET MARKETS............................................................................................ 20
5.5 MARKETING MIX.............................................................................................. 20
5.5.1 PRODUCT................................................................................................. 20
5.5.2 PRODUCT DEVELOPMENT..........................................................................21
5.5.3 PRICE......................................................................................................... 21
5.5.4 PROMOTION.............................................................................................. 22
5.5.6 PLACE....................................................................................................... 23
6. ACTION PLAN- MARKETING MIXES........................................................................23
6.1 PRODUCT......................................................................................................... 23
6.2 PRICE............................................................................................................... 24
6.3 PLACE / DISTRIBUTION CHANNEL....................................................................24
6.4 PROMOTION..................................................................................................... 24
6.4.1 ADVERTISING............................................................................................. 24
6.4.2 SALES PROMOTION................................................................................... 25
6.4.3 EVENT MARKETING AND SPONSORSHIP....................................................25
6.4.4 PUBLIC RELATIONS AND PUBLICITY...........................................................26
6.4.5 INTERACTIVE / INTERNET MARKETING.......................................................26

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7. IMPLEMENTATION SCHEDULE OR TIME LINE.........................................................26

8. PROJECTED PROFI & STATEMENT (2012-2015).....................................................26
9. EVALUATION- MEASURES OF EFFECTIVENESS.......................................................26
10. CONCLUSION...................................................................................................... 27
REFERENCE.............................................................................................................. 29

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 Malaysias 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
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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

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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 Malaysias 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
Protons 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.

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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
Quality
Customer focus

DESCRIPTION
We make products that work the first time, every time.
Customers are the source of our income. We deliver on our promises to

Innovation

our customers satisfaction.

We challenge convention, always seeking new and better ways of doing

Teamwork

things. We view change as opportunity.

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

Speed

workplace.
We have a can do attitude and will not rest until the problem is solved.

Caring

We have an inherent sense of urgency in everything we do.

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

environment.
Sources: PROTON Annual Report 2009 Protons 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.
Malaysias 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.

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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.

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 2009

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Source: Malaysia Automotive Association, MAA

Note: All figures have been rounded to the nearest decimal point

Malaysia is Southeast Asia's largest passenger car market with 497,459 vehicles sold in the year
2008. Malaysias 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. During
year 2000, PROTON conquered 63.4 per cent market share. 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.

2.2 PRODUCTS
PROTONs model products include WAJA, SATRIA, GTi, WIRA, ISWARA, ARENA,
PERDANA V6, JUARA, PERSONA and EXORA. The range of 1.3, 1.5, 1.6, 1.8 and 2.0 litre
engines satisfies a wide spectrum of customers both locally and abroad.

PROTONs model products include WAJA, SATRIA, GTi, WIRA, ISWARA, ARENA,
PERDANA V6, JUARA, PERSONA and EXORA. The range of 1.3, 1.5, 1.6, 1.8 and 2.0 litre
engines satisfies a wide spectrum of customers both locally and abroad.

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Based on technology and parts from Mitsubishi Motors, production of the first model, the Proton
Saga began in September 1985 at its first manufacturing plant in Shah Alam, Selangor. The
100,000th Proton Saga was produced in January 1989 and latest model is Inspira 2.0

2.3 MARKET CHARACTERISTICS AND FORECASTS

It is hard to see PROTON ever making money consistently with the current business model that
it operates. At the heart of the car business is all about two basic things: cost structure and
product, and it is difficult to get advantages of both factors. This could be best explained by
example of General Motors which failed because it messed up on both counts.
Margins are generally so thin in the auto business that car factories really only make money
when they are running at or near full capacity. PROTON has not one, but two factories that can
output a combined maximum of 1.2 million cars a year, yet it builds only 156,845 units.

2.4 PRODUCT DESIGNING

PROTON was established 25 years ago by Mr Mahathir Mohamad as part of an ambitious
national industrialization plan, but it has long been criticized for poor quality and unimpressive
design. PROTON's major problem, as everybody knows, is quality control. Complaints typically
relate to failures in power windows, doors and alarm systems.

PROTON's head of body

engineering once told a local newspaper that the benchmark for world quality class cars is two

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defects per car but from our observation, world class quality car manufacturers have been aiming
for zero defects all this time.

2.5 DISTRIBUTION AND PRICING TRENDS

PROTON cars are making their mark internationally as competitive and innovative automobiles
with competitive prices. They are now being exported to 50 countries including the highly
competitive United Kingdom and continental European markets. With concerted and unswerving
commitment from customers, business associates, shareholders, government agencies, and
employees, PROTON is realizing its goal of being an internationally successful Malaysian
automotive manufacturer. It is achieving this by being customer oriented and by producing
competitively priced and innovative products.

2.6 IMPORT POSITIONING

Proton maintains its position as a national automotive industry pioneer that caters to the masses.
On this note, Proton has consistently produced cars that offer value for money, affordable
technology such as the Body Control Module (BCM), as well as the Lotus ride and handling
featured in Proton cars. On an international level, Proton is determined to become a recognised
and relevant global automotive player. The export market plays a big role in our future as the
Malaysian domestic markets growth is becoming saturated the cars-to-population ratio in
Malaysia is very similar to that of developed countries, and growing at the rate of 3% to 4%
annually.
2.7 MARKET SEGMENTS AND TARGET MARKET BEHAVIOR

The company used to segment its market on variables such as behavioral, demographic, and
geographical differences.
Behavioral Segmentation: Behavioral segmentation is based on the customer's needs and
subsequent reaction to those needs or toward the purchase of intended products and/or services.
Demographic Segmentation: Demographic segmentation refers to a wide study of the potential
customers. Since the company is targeting its market to more economy class customers,
demographic segmentation is employed by the company.

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Geographical Segmentation: Geographical segmentation is done by dividing people (markets)

into different geographical locations. The company targets markets of different countries other
than Malaysia.

3. EXTERNAL ANALYSIS
Every industry is being affected by the developments in the macro-environment. Fundamentally,
all organizations are affected by the same developments; however, the extent to which
organizations successfully cope or take advantage of these developments differs in substantial
manner. Furthermore, developments may potentially influence one industry more severely than
other. Therefore, it is vital for organizations to identify or anticipate the macro-developments in
order to assess their potential impact on the industry and the organization (Nijssen & Framback
2000, p. 53).

3.1 PEST ANALYSIS

Political
o Asian Free Trade Area (AFTA)
o

Different environmental Policies

Economic
o Global and local economic crisis;
o Slowing
economy;

growth

of

Malaysian

o Poor consumer sentiment and changing

buying behavior of the consumer;
o Very competitive market
Social
o Huge population;
o Car ownership (1:5);
o Growing knowledge and concern of
the people towards the environment;
o Impact of the image of the brand
o Slowing/decreasing buying pattern of
the consumer.

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Technological
o Competing development in technology;
o Maturity of technology;
o Intellectual property;
o Potential
for
development;

innovation

and

o Maturity and capacity of manufacturing

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Table 2 shows the different factors which affect the operation of Proton and other major players
in the industry in the country. Thus, all of the factors can be grouped into 4: political, economic,
social and technological.
3.1.1 POLITICAL FACTORS

Currently, most of ASEAN region are free trade or 96% of the entire ASEAN trade. Asian Free
Trade Area was established in January of 1992 in order to eliminate tariff barriers among the
Southeast Asian countries. It planned to reduce tariffs to zero to 5% in 15 years among the six
nations through a common effective preferential tariff (Ghani & Zainuddin 2008). If we are
going to check on the high selling prices of the national cars of Malaysia because of high
production costs and lack of vendor efficiency, there is a big possibility that the local market will
be ruled by imported cars.
In Malaysia, PROTON prices are kept comparatively lower to foreign manufacturers through
protectionism. Protectionist policy has largely been blamed for PROTON 's stagnating
performance.
3.1.2 ECONOMIC FACTORS

The vehicle sales in the country is expected to fall by year by year due to different economic
aspect, primarily the issue of global financial crisis, which affected the local financial status of
the country (AseanOneMonitoring 2009). As a result, the government of the country is expecting
a slow economic growth for the country, which can affect the buying behavior of the customers.
Furthermore, due to the AFTA, it had increased the competition, which will impact the
performance of Proton.

2.1.3 SOCIAL FACTORS

The growing population in the country is one of the factors which can affect the automobile
industry. Furthermore, the ratio of car ownership in the country is somewhat high or total of 1:5,
which signifies that people are considering cars as important things in their lives. Furthermore,
people will also set on big-ticket items or consumers are expected to put off buying different

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motor vehicles because of the employment market uncertainty because of the global and local
financial crisis (AseanOneMonitoring 2009).
3.1.4 TECHNOLOGICAL FACTORS

Due to the increasing competition, the development in technology is growing and affecting the
performance and position of each and every company in the automobile industry. It is also
important to consider the maturity of technology, together with the maturity and capacity of
manufacturing, which affect the innovation process of any company. Due to the different
technologies, primarily the help of computer and the Internet, the potential for innovation and
development is increasing.

3.2. COMPANY INTERNAL ANALYSIS

SWOT Analysis
Strengths

Weaknesses

Competitively priced products

Extensive nationwide distribution network

Good corporate governance

Influence of patriotism as Proton is

by advanced technology since it

national car-maker

employ

An extensive support from government

research and development

Low

reputation

on

product

performance and functionality

High cost to expand their operation

insufficient

level

of

Short history in automotive industry

Vulnerable to increasing material

cost (steel, etc)

Opportunities

Threats

High demand on the products

Opportunity

to

grow

their

R&D Development

Government support

After-sales services

Collaborations within automotive industry

Marketing Plan for PROTON

brands

business

globally

Competitors - local & international

A lot of substitute products in

market

Fast

changing

and

advanced

engineering technology

Economic downturn decrease of

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car sales

3.2.1 STRENGTH

One of the important strengths of the company is its reputation or strong brand image due to the
long years it had stayed in the industry. Because of that, the Malaysia people have become
familiar and loyal to the brand, aside from the fact that Proton had become the national car brand
in the country. Due to that, the car manufacturer has a strong support or back-up from the
government, which is considered as an important entity in any business environment.
3.2.2 WEAKNESSES

First is the lack of R&D or innovation as well as lack of original products and limited products
because of the inability of the company to introduce real new models, which lead them to
cannibalize their screwed up line of products (BuildBoard n.d.). Furthermore, company is having
different human resource issue due to their inability to retain and cultivate talent. Because of all
these reasons, the company is lacking in international operations.
3.2.3 OPPORTUNITIES

The support of the government to the company is an important opportunity, because the
government considers the company as their partner, therefore majority of cars needed by local
and national government will be Proton. Entering new markets will also help the company to
expand their business in terms of size; therefore can help to gain more turnovers.
3.4 THREATS

The most crucial threats to be faced by the company are the global financial crisis which affects
the economy of Malaysia, and affect the lifestyle and buying behavior of the consumer. The main
reason behind this situation is the AFTA which focus on reducing tariffs from zero to 5% in 15
years among the six nations through a common effective preferential tariff It planned to reduce
tariffs to zero to 5% in 15 years among the six nations through a common effective preferential
tariff (Ghani & Zainuddin 2008).

4. COMPETITOR ANALYSIS
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4.1 THREATS OF NEW ENTRY

The threats of new entry pertain on how easy or difficult for new entrant to start competing
(12Manage n.d.). The primary barriers of new entry are the high capital and investments that are
needed in order to enter the industry.

4.2 HREAT OF SUBSTITUTION

The threats of substitution pertain on the ability of the customers to go for substitute products
that might be cheaper and accessible. In terms of the passenger car industry, the growing
demands for bikes and motorcycles.

4.3

BUYER POWER

The bargaining power of the customers in this industry is somewhat high due to the homogenous
or almost the same products, which divide the number of sales from huge number of competitors.

4.4 SUPPLIERS POWER

The supplier has a neutral power over the industry. This is because there are few dominant
suppliers in the industry who are well known for quality and brand image.

4.5 COMPETITIVE RIVALRY

The competitive rivalry pertains on the intensity of rivalry among the competitors in the industry.
The low switching cost from one brand to another intensifies the competition in the market and
pushes all of the major and minor players to focus on R&D and innovation processes in order to
improve their overall performance in the market. Above all, the competition is increased due to
high exit barriers due to the human resource and facilities
However other companies or brands competing with Protons more expensive offering includes
Toyota and Honda, as described below.
Category
Bran
d
Proton

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Luxury

Executive

Family

MPV

Compact

Perdana

Waja

Exora

Savvy

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Toyota

Camry

Altis

Vios

Avanza

Yaris

Honda

Accord

Civic

City

Wish
Stream

Jazz

5. MARKETTING STRETEGIES
With the quality of its extended range, better quality product and value for money product
positioning, brand proton will be increasingly attractive. As noted in last year's report, to flourish
and prosper, Proton has expanded its export potential even more. Tangible and sustainable
growth in the international market will be the mainstay of the proton as it seeks to expand its
market share and sales in export markets. Proton has accumulated a foothold in some markets, it
is necessary to explore new emerging markets to explore. In accordance with the script of the
proton for 10 years, the group is committed to expanding its presence in terms of sales and
distribution, especially ASEAN, China, India and the Middle East. Proton and other car
manufacturers, China is an important since it is booming economy in the region. Currently
Protons has entered and expanded Chinese automotive market, which also allows its subsidiary,
Lotus Group International Ltd., to achieve a strong position in Chinese automotive engineering
services. Proton is also aware of the need to improve operational efficiency, particularly with
regard to improving capacity utilization.

5.1 MARKETING OBJECTIVE

The marketting Objective is to market the new Proton lnspira 2.01 in Malaysia, and formulate a
strategies that will assist Proton to aitain its objectives in increasing sales, market share and
profitability of the PERUSAHAAN OTOMOBIL NASIONAL BERHAD.

5.2 MARKET SEGMENTATION

The company used to segment its market on variables such as behavioral, demographic, and
geographical differences, mention in section 2.7

5.3 LAUNCH OF NEW PRODUCTS

One of the key competencies of the growth for each car manufacturer has its products. Singleminded approach should meet to update protons meet the range of products to meet changing
needs and requirements of public procurement in the step and then Persona saga portrait during
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the examination. Persona is the first proton-production philosophy to embody "the right car for
the right market at the right time at the right price." People has more than 50,000 reservations
were received in late July 2008.Persona followed by the discovery of new-car saga remains the
epitome of Malaysian aspirations to become an internationally competitive automaker.

5.4 TARGET MARKETS

Since Proton is the largest and most competitive Malaysian automobile manufacturer, the most
important target market of the company should be Malaysian Market. Other markets Proton
automobiles targets include China, Singapore, Australia, Algeria and United Kingdom.

5.5 MARKETING MIX

5.5.1 PRODUCT

Introducing a strategy of the, right car for the right market at the right price and on time recently.
Furthermore, it needs to continue strengthening product portfolio with a multi-purpose highquality vehicles belonging to the family oriented modern lifestyle needs. By using the right
technology and keeping finger on the pulse of customer needs, really believe that this will help
bringing the company closer to achieving its goals of dynamic product portfolio.
As a strategy given above the Proton Inspira was launched which has almost zero difference
between the Inspira and Lancer save for Protons unique front end design, which is of a V-shape
as opposed to Mitsubishis trademark trapezoidal jet fighter grille. This will be followed by
Ispiira 2.0.
5.5.2 PRODUCT DEVELOPMENT

With proper product planning, the company was be able to introduce both new and improved
PROTON cars in the year under review, marked by the successful launch of the diffrerent models
in past. The same stretegy will be used to for product developed by incoporating costomer needs
and expectation, and research and development will be given more emphasises . A company can
choose one or a combination of these product development strategies. Just remember the main
objectives of your product development process:
1. To be prominent compared to competitors.
2. To continuously satisfy customers.
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3. To expand your current market.

It will focus the Growth through an increased market base, increased sales and increased profit.
However, it is not only product development that is important in a business but development of
everything else that makes a business special, which includes to develop sales techniques,
marketing strategies, manufacturing processes and office procedures. Products, processes,
procedures, strategies and techniques, all of these can be researched and developed until they are
all cutting edge.
5.5.3 PRICE

The firm's pricing objectives must be identified in order to determine the optimal pricing. In this
regard pricing objectives include the the comnapany started with t profit maximization objective
of seeks to maximize the profit, taking into account revenue and costs. The second onjective is
often to maximize long-term profits by increasing market share and lowering costs.
The pricing objectives are determind based on the factors including production cost, existence
of economies of scale, barriers to entry, product differentiation, rate of product diffusion, the
firm's resources, and the product's anticipated price elasticity of demand.
The company will used penetration pricing steretegy for new model such as Ispira

2.0, by

charging for products which is set artificially low in order to gain market share. Once this is
achieved, the price is increased.
5.5.4 PROMOTION

Promotion strategies will vary depending on the target market segment.

World of mouth

steretegy would be aplicable to all segamensts however, there is no direct action for this steretegy
and would be incorporated to diiferent activities.. A costeffective campaign, focused on direct
marketing, publicity, webpages/sites, and advertising is would be conducted as a promortional
activities.
As part of the above stretegies, sales promotion could be conducted which includes several
communications activities that attempt to provide added value or incentives to consumers, to
stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or
purchase.
There are mainly two main types of sales promotion strategies: Push, Pull, and as a third type
combination of those two eill be used.
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A push strategy involves convincing trade intermediary channel members to "push" the product
through the distribution channels to the ultimate consumer via promotions and personal selling
efforts. In this treagrds tactics like

allowances, buy-back guarantees, free trials, contests,

specialty advertising items, discounts, displays, and premiums would be employed in companys
sales promortion.

A pull strategy attempts to get consumers to "pull" the product from the manufacturer through
the marketing channel. The company focuses its marketing communications efforts on
consumers in the hope that it stimulates interest and demand for the product at the end-user level.
This strategy is often employed if distributors are reluctant to carry a product because it gets as
many consumers as possible to go to retail outlets and request the product, thus pulling it through
the channel . Some of the tactics like providing samples, coupons, cash refunds and rebates,
premiums, advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes,
games, and point-of-purchase (POP) displays, would be employed by the company.
5.5.6 PLACE

Since the term place really refers to any way that the customer can obtain a product, for
selling of Proton Inspira 2.0 will be occur via any number of distribution channels, such as in a
retail store, through and through the online orders. The customers could approach the product
that it will ease for them to order or buy.

6. ACTION PLAN- MARKETING MIXES

Marketing Plan for PROTON

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6.1 PRODUCT
PROTON Holdings is the company which has commands a considerable market share in terms
of the Malaysia automobile industry, particularly passenger cars.
As solving changing needs of customer needs, the new Inspira 2.0, Inspira wears 16-inch wheels
with 205/60 rubber. The new improvement features like how to improve on quality of front wiper
sound, absorber sound and so on.

6.2 PRICE
Pricing objectives has been set and it is clear that PROTON Holdings Berhad is marching
towards the direction of profit maximization, looking at the extensive product development and
product refreshment over the time. Generally consumers feel that the prices of PROTONs
products are affordable as compared with other brands in the category with which it competes.

6.3 PLACE / DISTRIBUTION CHANNEL

PROTON has 2 distribution channels which are PROTON EDAR and EON. PROTON has
reduced the number of outlets by 24% to 302 outlets as compared to 397 outlets in year 2007 (FR
2008) in an exercise to reduce cost. However online ordering system will be placed and
catalogue sales through sales agents will be accompanied in order to increase sales and market
share of the company.

6.4 PROMOTION
Adding Inspira 2.0 to the portfolio, it will be using the existing Integrated Marketing
Communications (IMC) over the years to promote its respective car models.

In order to

efficaciously contrivance IMC, quite a lot of tackles have been used such as advertising,
promotion, event marketing and public relations , sponsorship, and publicity and internet &
social networks such as facebook..
6.4.1 ADVERTISING

Marketing Plan for PROTON

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The company in general have three main types of advertising; print advertising, radio advertising
and television commercial advertising. However every model has its specific featues on its own
advertising even it is print or any other electronic form of advertising. In this regard Inspira 2.0
would have an extensive advertising on print media and social media as well as on TV focusing
its new features, specific layout, and putting significant emphasizes on its car Unique Selling
Proposition (USP).
6.4.2 SALES PROMOTION

Sales Promotions
Drive for Cash

Selling Points
There will be lucky-draw

of new

PROTON car owner and winner will be

PROTON X Change

given cash.
Old proton car owners are given coopon
on 1000 RM to by new Inspira 2.0

6.4.3 EVENT MARKETING AND SPONSORSHIP

The company will sponsor the main sports events in Malaysia as title sponsor and few vents as
main sponsor. This will be able to enhance their corporate image magnitudes, and will create
more positive public perception on their brands, especially on new Ispira 2.0. Some of the sports
events that could be sponsored as type of sponsorship is given below.
Sports Events
Le Tour de Langkawi
3-year sponsorship for A1-Team Malaysia
Football Malaysian Super League
Malaysia Super Series Badminton Tournament
Malaysian Open Bowling Championship
World Rally Super2000 in 2013
Formula 1 Sepang Circuit
Lotus Team- Formula 1 in 2013

Type of Sponsorship
Main Sponsor
Title sponsor
Tile Sponsor
Core Sponsor
Main Sponsor
Tile Sponsor
Title Sponsor
Main Sponsor

In addition to above sports events, the company could sponsor social events given below within
three years.
Social-causes Events
Diploma in Civil Engineering Courses in three Universities 2012
Malaysian Skills Competition for the personal cars sector 2013
Marketing Plan for PROTON

Type of Sponsorship
Main Sponsor
Title Sponsor
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National Day Celebration 2013

Main Sponsor

6.4.4 PUBLIC RELATIONS AND PUBLICITY

The public relation effort of the company will be strengthened and tools such as press releases,
press conferences, exclusives, interviews, community involvement and social media involvement
would be enhanced during next three to four years.
6.4.5 INTERACTIVE / INTERNET MARKETING

As launching the Inspira 2.0, customer interaction though internet would be enhanced . In this
regard customers could register on the webiste www.proton-edar.com.my and by logging on the
suite customers could get information through question and answers, chat with public relation
and engineering officials, and also could chat with the exiting customers to share their views. In
addition the customers could fill the form and order and payment could be done by credit card.
Additionally online advertisements will be done in social media sites and other well-known
websites.

7. IMPLEMENTATION SCHEDULE OR TIME LINE

Implementation would be started on January 2011, and it will continue for four years. The detail
work plan and time line will be prepared on approval of the plan.

8. PROJECTED PROFI & STATEMENT (2012-2015)

8.1 EXPECTED PROFIT AND LOSS OF INSPIRA 2.0 ( IN
THAUSANDS)

Pro Forma Profit and Loss

Sales
Direct Cost of Sales
Other
Total Cost of Sales

FY 2012
$1,211,088
$398,407
$0
$398,407

FY 2023
$1,279,204
$406,976
$0
$406,976

FY 2014
FY 2015
$1,341,260 $1,529,036
$415,276
$473,415
$0
$0
$415,276
$473,415
$0

Gross Margin
Marketing Plan for PROTON

$812,681

$872,228

$925,984

$1,055,622

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Gross Margin %
Expenses
Payroll
Marketing/Promotion
Depreciation
Leased Equipment
Accounting/Payroll Processing
Legal Retainer Fees
Business Licenses & Permits
Credit Card Expense
Bank Fees
Music & Entertainment
Training / Employee Retention
Programs
Repairs & Maintenance
Utility Services
(Gas/Electric/Water/Sewer)
Telephone/Communication Expense
Insurance:
Fire/Theft/Liability/Liquor/Product
Restaurant Occupancy Cost (Lease)
Payroll Taxes (FICA/FUTA/SUTA)
& Employee Benefits
Exterminator/Trash Removal
Dishware/Uniforms/Cleaning
Supplies/Decor
Printing/Paper/Postage/Subscriptions
Facility (Exterior Cleaning/Grease
Trap/Hood/Windows,etc.)
R&D Meals
General Business Comps
Owner Comps
Other Expenses (ComAreaMaint,
etc.)
Total Operating Expenses

Marketing Plan for PROTON

67.10%

68.19%

69.04%

$1
$0

$400,788
$22,000
$6,500
$12,000
$6,600
$2,400
$6,000
$19,983
$1,200
$3,744

$429,828
$25,000
$6,500
$12,000
$6,600
$2,400
$6,000
$21,107
$1,200
$3,744

$431,128
$15,000
$6,500
$12,000
$6,600
$2,400
$6,000
$22,131
$1,200
$3,744

$491,486

$5,008
$9,000

$6,008
$9,000

$6,008
$9,000

$6,849

$26,496
$1,800

$27,821
$1,800

$28,933
$1,800

$32,984

$21,624

$22,705

$23,613

$26,919

$77,250

$79,568

$81,955

$93,429

$66,531
$4,800

$71,351
$4,800

$71,567
$4,800

$81,586

$12,466

$13,089

$13,612

$15,518

$9,500

$9,500

$9,500

$10,830

$3,640
$2,400
$22,850
$2,124

$3,640
$2,400
$23,125
$2,124

$3,640
$2,400
$23,125
$2,124

$4,150

$4,200
$750,903

$4,200
$795,509

$4,200
$792,981

$17,100
$7,410
$13,680
$7,524
$2,736
$6,840
$25,229
$1,368
$4,268

$10,260

$2,052

$5,472

$2,736
$26,363
$2,421
$4,788
$903,998
$0

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Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$61,778
$68,278
$15,984
$13,738

$76,718
$83,218
$12,640
$19,224

$133,004
$139,504
$9,296
$37,112

$151,625

Net Profit
Net Profit/Sales

$32,056
2.65%

$44,855
3.51%

$86,595
6.46%

$98,718

$159,035
$10,597
$42,308
$0
$7

9. EVALUATION- MEASURES OF EFFECTIVENESS

As this campaign is long term campaign over four years, the following measures will be taken as
towards monitoring and evaluation of specific activities.
No. Promotion Mix
1. Advertising on print and electronic
media

Measurement / Goals
End of each year an impact assessment survey will
be conducted to identify effectives of the campaigns.
Based on finding necessary corrective action or
changes will be taken to continue the campaign

2.

Sales promotion

further.
One of the most important indicator to measure the
effectiveness of the proportions will be number of
sales occur due to that particular proportion. This
will be identified by the application form which

3.

Internet / Interactive Marketing

indicates the indicator to be filled by customers.

The effectiveness is based on the number of traffic
generated on the website throughout the campaign
period, and comments received from the users.

10. CONCLUSION
PROTON as the first Malaysian car manufacturer has established a very strong identification in
the Malaysia automotive market. As a result, PROTON is unable to create positive response in
the head and heart of its consumers. Based on its recent performance, PROTON has indeed
working very hard to live up its working philosophy of producing the right car at the right time,
for the right market, at the right price.
Marketing Plan for PROTON

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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.

REFERENCE
1. PROTONs Annual Report 2009.
2. Kotler, P. and Keller, K.L. (2009). Marketing Management (pp 53, 77-84) New Jersey:
Pearson Prentice Hall
3. PROTONs official homepage. (www.proton.com) & (www.proton-edar.com.my)
4. The Star, Wednesday 21,2007, Many Issues Still for Proton to Address.
5. The Malaysian Insider, Sunday, March 28 2010, Low Export Not Protons Real Problem
6. The Malay Mail, The Problem with Proton, by editor Leow Ju-Len, June 12, 2009.
7. A new in-car software application helps drivers reduce CO2 emissions. Accessed on March
22, 2010 from
8. Quirk, J. (2008, January 28). Car Technology: The Latest Innovations In Engine
Development And Safety. Sky Motoring. Accessed on March 27, 2010 from
http://news.sky.com/skynews/Home/Sky-News-Archive/Article/20080641302627
.

Marketing Plan for PROTON

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Marketing Plan for PROTON

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