Environment Factors

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Perusahaan Otomobil Kedua Berhad (Perodua)

For this given assignment, I have chosen Perusahaan Otomobil Kedua Berhad or Second Automobile Manufacturer Limited Corporation as the organization of my choice. This organization is more widely known as Perodua. Perodua first emerge to the market on 1993 and is Malaysia’s second automobile manufacturer after Proton. Its first car is the Perodua Kancil, launched on 1994. It mainly manufactures small compact cars at very affordable prices and therefore does not really compete with Proton in the same market. It is not only available in the Malaysian market, it is exported to countries such as United Kingdom, Mauritius, Brunei, Sri Lanka, Cyprus, Malta, Egypt, Nigeria, Senegal, Lebanon, Qatar, Saudi Arabia, Syria, Nepal and Fiji in small numbers by local dealers.

Perodua does not actually produce any in house designs or engineering for the main components (i.e engine, transmission). All Perodua cars are badge engineered from Daihatsu. Daihatsu used to own a majority stake in Perodua. In 2004, the Toyota Avanza started being assembled by Perodua in their factory in Rawang for the Malaysian market.

Perodua’s target markets are teenagers, low income earners, small families and lower-middle class consumers. Now with the increase of fuel prices, it had managed to come up with cars that are fuel efficient. Therefore, it targets those who are concern with fuel consumption of the car.

In order to reach out to its customers, it has to cope with the business environmental factors that consist of actors and forces outside marketing that affect its ability to develop and maintain successful relationship with its target customers.

Business environment however is divided into two types. They are microenvironment and macroenvironment. By definition, microenvironment includes forces close to the company that affect its ability to serve its customers and macroenvironment are larger societal forces that affect the microenvironment.

First, I will elaborate on the microenvironmental factors. There are six forces altogether. The company’s internal environment, suppliers, intermediaries, customers, competitors and publics are the six forces. The company itself plays the most important role of all the six. This is because for the marketing people to carry out their marketing plan, they need the approval and support from the top management of Perodua. Then, they will need the financial support to make those plans successful. But, before all of that, they will need the help of the R&D department to do research on customers’ needs and wants before planning how to market the product. As I have said earlier about the price of petrol has escalated, therefore, Perodua came up with Viva, a fuel efficient car to combat those fuel consumption miseries in customers. After that, as the orders are received, the marketing department will have to pass the number of orders to the manufacturing department. Then, it will also need to correspond with the accounting department on the sales made.

Next, we have the second factor which is the customers. Customers are very important to a business. Without customers there will not be sales and profit. Without that, the company might not be able to survive. What is the use of having a business if there are no customers? The customer markets are sort to five types. The business markets are one of it. This market buys a company’s product and uses it to assist in its own production or business. This market gives big sales to Perodua as they usually buy in bulk. For example, driving schools buy Kancil and Myvi to train their students. The reason why driving schools buy Perodua products is because of its low cost and low maintenance. The main customer market of Perodua is the reseller markets. Since Perodua is a manufacturing company that manufactures cars, it will need dealers to help sell out the cars. This is where the resellers come into position. Their main...
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