Perodua - Csr
Perodua – Advertising with social dimension
Executive Summary
Perodua was set up as a national car project in the year 1993. In the initial years of its inception the company operated in a protected environment marked by both tariff and non-tariff barriers. By the year 1998 leveraging on its high local sourcing strategy the company, along with Proton, managed to capture up to 90% market share.
In 2001 the company set up a joint venture with Daihatsu Motor Co. and Mitsui & Co., the Japanese partners being responsible for manufacturing and engineering operations. Operating in an open economy post AFTA in year 2006, Perodua has found its niche in the small car segment and completely dominates the sub-1000 cc motor vehicle segment.
Perodua has been extensively using “cause related marketing approach” treating Government, suppliers and dealers, employees and customers as stakeholders in its business. It also has 2 different kinds of ad programs, product ads promote individual brands, whereas corporate ads carry social message and promote the company. 2 different departments handle the designing and positioning of these different ad types.
There are obvious benefits to using corporate ads with emotional appeal; studies have established that companies tend to realize enhanced relationship with their agencies. However on the flipside designing these ad campaigns is very complicated as sensibilities of all sections of the society have to be taken into consideration.
A major downside to Perodua’s corporate ad campaign is that no evaluation model has been adopted to measure the effect of such advertising on company’s short term goal i.e sales or long term goal of being a responsible corporate citizen. The company should immediately adopt both qualitative and quantitative measures to understand the benefit of its campaign. Depending on results obtained Perodua can decide on how to continue with its corporate ad campaign.
Industry Overview
Executive Summary
Perodua was set up as a national car project in the year 1993. In the initial years of its inception the company operated in a protected environment marked by both tariff and non-tariff barriers. By the year 1998 leveraging on its high local sourcing strategy the company, along with Proton, managed to capture up to 90% market share.
In 2001 the company set up a joint venture with Daihatsu Motor Co. and Mitsui & Co., the Japanese partners being responsible for manufacturing and engineering operations. Operating in an open economy post AFTA in year 2006, Perodua has found its niche in the small car segment and completely dominates the sub-1000 cc motor vehicle segment.
Perodua has been extensively using “cause related marketing approach” treating Government, suppliers and dealers, employees and customers as stakeholders in its business. It also has 2 different kinds of ad programs, product ads promote individual brands, whereas corporate ads carry social message and promote the company. 2 different departments handle the designing and positioning of these different ad types.
There are obvious benefits to using corporate ads with emotional appeal; studies have established that companies tend to realize enhanced relationship with their agencies. However on the flipside designing these ad campaigns is very complicated as sensibilities of all sections of the society have to be taken into consideration.
A major downside to Perodua’s corporate ad campaign is that no evaluation model has been adopted to measure the effect of such advertising on company’s short term goal i.e sales or long term goal of being a responsible corporate citizen. The company should immediately adopt both qualitative and quantitative measures to understand the benefit of its campaign. Depending on results obtained Perodua can decide on how to continue with its corporate ad campaign.
Industry Overview