Marketing Strategies for Perodua

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Executive Summary
This marketing report briefly analyses the marketing approach of Perusahaan Otomobil Nasional Kedua (PERODUA), in this analysis, the various marketing activities such as product development, distribution, pricing, advertising and market research of the company is critically evaluated. The report also evaluates the company's current position against the automotive industry and its competitors. A concise insight into the consumer's perception of the brand is also investigated. The contents contained herein is not exhaustive of the company's marketing and business activities but merely provides a basic overview of its current marketing standpoint, business challenges and possible remedies to its position based on information available on the public domain.

Table of Contents
2.0Company Information4
3.0Definition of Marketing Terms6
4.0Perodua's Business Concept8
5.0Competitive Issues Facing Proton10
Marketing is an organization function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders (Kotler et al.,2007). Marketing is a holistic process encompassing prior and after the act of selling applicable to any organization, large or small, for-profit or non-profit, domestic or global. Marketing itself is an evolutionary process starting off from consumer goods marketing all the way to electronic marketing of current times. Marketing professionals have also capitalized on viral marketing in recent times. This marketing report analyses the marketing approach and challenges of Perusahaan Otomobil Nasional Kedua (PERODUA), Malaysia second national car manufacturer. The report explores and benchmarks the company marketing activities against the automotive industry and its competitors. 2.0Company Introduction

Perusahaan Otomobil Nasional Kedua (PERODUA) was formed in 1993 as the second national automobile manufacturer in Malaysia after Proton, the first national auto manufacturer. Headquarted in Sungai Choh, Rawang, Perodua does not have in-house design and manufacturing for main components (engine, transmission, chassis,etc.) and therefore re-assembles Daihatsu car models. Daihatsu Motors Japan is owned by motoring giant Toyota and has a long-established working relationship with United Motor Works (UWM) Malaysia via its parent company Toyata. This led the formation of Perodua, a joint venture between UMW Corporation Sdn Bhd (38%), Daihatsu Motor Co. Ltd. (20%), MBM Resources Berhad (20%), PNB Equity Resources Corporation Sdn Bhd (10%), Mitsui & Co. Ltd (7%) and Daihatsu (Malaysia) Sdn. Bhd. (5%). Perodua was formed by the government to produce compact cars which are cheaper and accessible to Malaysians. Such positioning ensured it didn't cannibalize market share from Proton. In fact, the deliberate segmenting of markets is evident where in the United Kingdom, Perodua cars are actually sold by Proton dealerships. Since commencing operations in 1994, Perodua has sold approximately 800,000 vehicles by the year 2004 – a tremendous achievement by an industry newcomer in 10 years. In the year 2001, Perodua initiated a restructuring exercise to further strengthen its position in the automotive industry with the formation of Perodua Auto Corporation Sdn. Bhd. (PCSB) as a joint venture with two Japanese partners – Daihatsu Motor Co. Ltd. and Mitsui & Co. Ltd. The entire manufacturing operations of the Perodua group are being managed by PCSB. The rationale behind the formation of PCSB is explored and analyzed in the upcoming sections. According to their corporate website; since the restructuring, the Perodua group has 3 main operating entities (refer Appendix 1 for group structure) consisting of: 1.Perodua...
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