PLC

Topics: Campro engine, Marketing, Risk Pages: 5 (1236 words) Published: January 28, 2015
Chapter 13
Problem
Outline typical PLC with reference one specific industry to capture market shares. Briefly explain the start and end of particular model. Proton
Industry level: Automobile

Sector of industry level: 1.3 or 1.5 spec

Individual product level: Exora,Perdana,Saga,Neo

PLC of Proton

The product life cycle is an important concept in marketing.  It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage.  Some continue to grow and others rise and fall.  The main stages of the product life cycle are:

Start Up – introductory phase of a lunch of a product
Growth – new entrance are attracted into the market
Turbulence - where increasing product capacity result in overcapacity, and then turmoil in the market resulting in shakeout Maturity –where demand and supply in balance
Decline – where the market is saturation and therefore replacement or new product development is required. Start up

When proton first launched their product in the market there’s lots of uncertainty from consumer during that time. Since it’s new, there’s no guarantee of the success of the brand. Start-up phase is where allocation of trust needs to be in consumers mind because Proton was facing great competition with famous, successful car brand out there. Competing with these is not easy. Since proton already know about the market environment and their competitors Proton was smart, to segment their Proton brand to economy or affordable car market.sales of proton during this phase was low due failure to meet demand in the market.

Growth

The successful launch and introduction of the Exora, the first truly Malaysian MPV in 2009, helped to improve the total production volume from 157,643 units to 173,057 units. Although it is new, the Exora alone has contributed to 20% of the total volume in its first year of production, a testament of its high demand.

In July 2010, the new Exora Special edition was launched and continued to capture the MPV segment with its enhanced styling and product specification. The Saga will also be upgraded by having a two phase facelift, the first facelift targeted in November 2010 with minor appearance modification and a second involving an engine upgrade in 2011.

This facelift is planned despite its continuing streak of high bookings. In fact in the last financial year, the Saga was a best seller several times for the Malaysian automobile market; due to its impressive selling points of consistent quality, value for money and reliability.

The launch of the Persona ‘Elegance’ in March 2010 is another example of PROTON’s commitment to continuously improve its products. The Elegance is equipped with better specifications including a 32bit ECU which means increased functionality, better engine performance and increased diagnostic capabilities. These combined with an enhanced stylish body kit, alloy rims and interior trim leather makes the Elegance a much sought after car in its class. We expect the Elegance to continue its reign as one of the top revenue generating models in our stable.

Efforts to improve productivity and quality remain a core focus within the Manufacturing Division. Quality levels improved in 2009, and with the increase in production volume, we are also taking steps to raise our productivity index. In term of market shares, the company's market share later grew to 65% in 1987.Proton maintained a majority market share in the following years, which peaked in 1993 at 74% with over 94,100 units sold. Turbulence

The financial year 2009/2010 has been a challenging yet exciting year for proton. They started cautiously in the wake of the drastic market slowdown due to the 2008 global economic crisis. This had severely affected the automotive industry domestically and globally. Market analysts had originally forecasted an 11%...
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