Cmgb 6101 – marketing management product : proton exora 2 For: Michael M. Dent Msc, mphil, mcim prepared by
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- Proton Exora
- New in-car software application to reduce carbon dioxide (CO2) emissions
- Collision Warning System
- Vehicle to Vehicle Technology
- RECOMMENDATION IMPLEMENTATION Action Plan- Marketing Mixes Product
- PROTON Car Model Model Tag Line Portfolio / Characteristics
- Models Price List Exora 2
- Place / Distribution channel
- Sales Promotions Selling Points
- Event Marketing and Sponsorship
- Public Relations and Publicity
- Interactive / Internet Marketing
- Implementation - Campaign Flowchart/Gantt Chart
- Evaluation- Measures of Effectiveness
- Focused on Service Excellence
Increase Fuel EfficiencyExisting Proton Exora price is around RM69,000 to RM75,000 with engine capacity of 1.6 litre Campro CPS engine with 125hp and 150Nm of torque, powers the Proton Exora economically. Despite satisfaction obtained with performance of Campro CPS engine under Proton Exora, however, based on comparison conducted for test drive review, Proton Exora will not able to beat the Nissan Grand Livina’s 1.6 litre CVTC responsive engine which in terms of fuel is more efficient and economy. This is due to the weight of Proton Exora is more than Livina, although both engine have same 1600 cc displacement. Therefore, in order to increase its competitiveness in the market, our group has proposed for new innovation in fuel efficiency for new Proton Exora 2 is to devote part of its RM525 million R&D to fuel efficiency increase and cooperate with Perodua on improving the technology of fuel efficiency increase (George K. Chacko, 2006). Thus, Proton will have more attractive cars by introducing new Proton Exora 2 to market via new technology on fuel efficiency introduced in the market.
The new innovation that Proton may introduced for its Proton Exora 2 would be software application installed to reduced carbon dioxide (CO2) emissions by adopting EcoDrive technology. EcoDrive is new technology developed with Microsoft technology, which is the world’s first device that interacts directly with drivers and assist them in changing their driving habits to reduce vehicle emissions and reduce fuel consumption. EcoDrive is built on Blue&Me, a Bluetooth-based system developed jointly by Fiat and Microsoft that provides drivers hands-free control over digital music players, mobile telephones and other devices. For example in Fiat cars equipped with Blue&Me, the EcoDrive system assesses the driver’s driving style during a normal driving day such as the way a driver accelerates, brakes, and shifts is automatically measured and analyzed against the car’s fuel economy and exhaust emissions. On arriving home, the driver removes a standard USB flash drive from a USB port on the dashboard or the glove compartment, plugs it into a computer and downloads information on the recent driving excursion. A software application then tells the motorist how many kilograms of emissions the car produced during the most recent drive and provides recommendation for driver to reduce those emissions by driving in a more environmentally friendly way by consuming less fuel. Hence, with the introduction of EcoDrive technology in Proton Exora 2, this will assist in reducing the CO2 emission by 10 to 20% through better driving habits and position Proton Exora as environmental friendly car producers in Malaysia.
Proton Exora 2 could implement few innovations using the latest car technology for convenience and safety as follows :-
With the latest car technology enables automatic parking, the system is able to detect a space big enough for vehicle to squeeze into a row of parked cars.
Pre-scan technology shown by lasers scans the road surface before the car drives over it. This prepares the suspension to react to the terrain accordingly and ensures peerless ride comfort. This technology was showcased in the Mercedes F700 concept.
Collision Warning system, which uses radar technology with a wide-angle search area to detect objects in front of and around the car. If the car approaches a pedestrian, a red warning light comes on the windscreen's head-up display and a warning signal sounds. This helps the driver to react and in most cases avoid an accident. If the risk of a collision increases, assisted panic braking is activated automatically to provide more pressure when the brakes are applied. With this technology adopted by Proton Exora 2, this will reduce the number of accident in Malaysia. This technology has been developed by Swedish car maker Volvo.
This hi-tech system is being developed by General Motors and uses wireless technology to allow a driver in one car to receive information from another car further ahead on the same road. This system would allow the other driver to receive this information in sufficient time to react and therefore avoid any accident. This system could also work well with the emergency services, alerting all drivers on the interlinked V2V technology that an ambulance was approaching and from which side.
PROTON Holdings Berhad has commands a substantial market share in terms of the Malaysia automobile industry, particularly passenger cars. Adding to the portfolio, the latest 7-seater MPV, new concept Exora 2 is introduce.
From the possible solution, the new Exora 2, this includes powerful CamPro CPS powertrain as well as technologically advanced bi-xenon headlights with Increase Fuel Efficiency, New in-car software application to reduce carbon dioxide (CO2) emissions and also with implemented few innovations using the latest car technology for convenience and safety such as automatic parking, pre-scan technology, collision warning system and vehicle to vehicle technology. Combined with other luxurious interior items such as leather seats and gated gear shifter. The new improvement features like how to improve on quality of front wiper sound, absorber sound and so on.
Pricing is an important strategic issue for PROTON Holdings Berhad because it is very much related to product positioning. Furthermore, pricing for PROTON car will eventually affects other marketing mix elements such as product features, distribution channel decisions and the aggressively promotions held nationwide. 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. The price of the car often determines the classification of various car models by PROTON. The product prices are seemingly become competitive when competitor manufacturer, for instance, Produa with the New launch MPV Alza in year 2009 and Toyata with its MPV Toyota Avanza, try to match a lower market price to seize the local customer segmentations. Generally consumers feel that the prices of PROTON’s products are affordable as compared with other brands in the category with which it competes. For Exora 2, the retail price is remaining same price as previous version. These cost leadership strategies will strong impact to draw customer attention.
Sources: PROTON website (www.proton.com)
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. In general, its distribution channels are easily accessible as it can be reached in all major towns in Malaysia. PROTON has strong distribution channels, which will be advantages for Exora 2 to reach the target market with effectively.
The Exora 2, will using the existing the currently what PROTON Holdings Berhad has been implementing Integrated Marketing Communications (IMC) over the years to promote its respective car models, be it a new car development or the car refreshment. In order to successfully implement IMC, several tools have been used such as advertising, promotion, event marketing and sponsorship, public relations and publicity and lastly internet. It is often happened that different IMC campaigns are held for different car models carried under PROTON Holdings Berhad.
PROTON Holdings Berhad has used 3 means of advertising, namely the print advertising, radio advertising and television commercial advertising. Advertising has been utilized aggressively by PROTON whereby almost every car models have its own advertisement, be it print or electronic media. For instance, PROTON Exora has its own print advertisement carrying the tagline ‘You’ll be Amazed- Keriangan Keluarga. For Exora 2, we will enhance more with the same tag line again and add on additional new and improved product features. From the concept of advertisement layout, the contingency you may find that PROTON is putting significant emphasizes on its car Unique Selling Proposition (USP). As for the television commercial, The Exora 2, must successfully portrayed the sleek design and car performance for the new improvement feature with new additional features. That will very much help on the retail car selling price of the Exora 2.
As for PROTON Holdings Berhad, they have designed sales promotions from time to time in order to capture the attention of local consumers. These impressive sales promotions often success when PROTON uses both the price-cut and value-added type of promotional designed. For instance, PROTON XChange programme allows the consumers to trade-in their PROTON car with additional RM5,000 to own a brand new of Exora 2. However, PROTON Holdings Berhad usually engaged the consumers with their customer franchise building promotions like car-testing, demonstrations and noncustomer franchise building promotions such as premiums. These promotional items will somehow enhance the attitudes and loyalty of consumers towards PROTON and eventually will affect its brand equity.
As a main sponsor in the major sports event in Malaysia, PROTON Holdings Berhad has actively involved in engaging the public with the events they sponsored. By being the sponsor for these events, PROTON Holdings Berhad will be able to enhance their corporate image dimensions. This step is a soft sell and a means to improve the public perceptions that is reliable, social-conscious, etc. The consumers are expected to credit PROTON and favour it in their purchase decision on the cars.
For Exora 2, with the current sponsorship event available for PROTON is many, that will easy to promote for Exora 2 with advertising program which collaborate with right events like Formula 1 motorsports at sepang, A1 race motorsports, PROTON’s Football Club to play in the Malaysian Super League, PROTON Malaysia Super Series Badminton Tournament, Le Tour de Langkawi and so on to reach the target market.
Public relations is the management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance. The role of public relations is often relate the clients, here refers to PROTON Holdings Berhad, with its general public, customers, stockholders, suppliers and employees. The tools usually involved press releases, press conferences, exclusives, interviews, community involvement and lastly the Internet.
With the advancement in the information technology, PROTON Holdings Berhad with its official website, www.proton.com, has managed to capture the market share. Interactive marketing, particularly, allows a 2-way communications as compared to the traditional forms which are only one-way. For the Exora 2 campaign, customers can simply logging onto the website www.proton-edar.com.my to do activities for searching, altering information, inquires and responses to questions and to apply for hire purchase transaction with PROTON Commerce’s e-Finance system are immediately advised as to whether their applications have been rejected or conditionally approved, subject to the submission of relevant supporting documents. PROTON Holdings Berhad has also integrated web strategies with other aspects of IMC programs, i.e. media advertising. Media advertising in PROTON’s website to the internal advertising in the web portal, such as pop-up flyer and interactive 3-D flash for different car models. These advertisements will create a different visual experience to the online viewers as compared to the conventional media.
The scheduling of the IMC efforts is based on a Flighting Method which employs a less regular schedule with intermittent periods of advertising and non-advertising. At some phase, there would be heavier promotional expenditures and at other times, there may be no advertising cost incurred at all. Advertising may increase during certain periods such as F1 motorsport event in sepang, PROTON Malaysia Super Series Badminton Tournament, Malaysian Open Bowling Championship. The Campaign Flow chart/ Gantt chart is shown in Appendix.
As this campaign is a short term campaign i.e. over 1 year, we are proposing the following measurement / evaluation:
Note : Effect of event sponsorship and PR related events are hard to measure as it is intended to build a positive image for Proton and does not instigate immediate response to sales. Aside from this Proton also conducts its own in house survey (form as attached) to gauge the level of satisfaction, source of awareness etc.
Our recommendations are trying to address the performance (functional characteristics) and imagery (symbolic characteristics) issues negatively affecting overall PROTON’s product brand image at the moment. PROTON has shown many improvements recently, however, it has yet to strongly improve the consumers’ perception towards the brand. It is hope that with the above recommendations, it can help to enhance further its effort in strengthening is brand image and values
Recommendations to improve performance will be focused on the product attributes and benefits with the aims to enhance driving experience and build brand personality. These recommendations are mainly based on feedbacks frequently mentioned by the website respondents (www.motortrader.com.my).
Generally consumers feel that PROTON car is under power. This is due to the engine used. For a car, engine is the major or critical part of the product, it is resemble the heart of a human being. Therefore, to produce a car with premier quality, priority must be given to its engine. In this area we recommend PROTON to seriously invest in R&D and technology, and expedite its effort in developing strategic partners to strengthen quality, manufacturing and know-how which they are unable to do it themselves. PROTON may have invested in its technology; however, its efforts in this area seem insufficient. Consumers expect it can provide a better technology, for instance Perodua offered its DVVT engine, but PROTON has continued using its CAMPRO engine for all the cars for decades. In this regard, we recommend considering partnering or joint venture with those reputable engine manufacture, such as manufacturer from Europe country (BMW, Mercedez, Renault or Peugeot) or Japan (Mitsubishi, Honda).
Interior design of the car refers to its overall instrument panels such as the seat, the dash board, the other accessories and special feature in the car which is perceived as not stylish. The materials used are also felt as average low quality. As the car get older, the compartments especially its dashboard area start to produce uneasy noise, and the sound prove of the car is pretty poor especially on high speed driving. Throughout the years, there is not much improvement in this area which can WOW the consumers. In fact, all these features will help to create driving experience. Interior design with aesthetic features and good sound protection will make a driver feels joy and excited thus creating a strong positive driving experience.
The next consumer perception that PROTON should address is the structure of its products in terms of solidity. Generally consumers think that its body frame is very vulnerable, when they are driving the car at higher speed, they feel it is light and have a sense of floating and unsafe. Although have been improved for model like Pesonna, Exora but that still achieved customer satisfaction level. To improve this area, again investment in R&D is almost important. We recommend PROTON to seriously study the change of material. An alternative will be working with partners or joint venture with company specialized in frame manufacturing.
Exterior design is the key product attribute that plays an important role in enhancing the overall product brand image. We will look at PROTON exterior design in terms of:
Many feel that the overall design of PROTON is not unique enough. PROTON must invest in building its creativity and innovative on it to have own characteristic outlook/shape of product brand image.
Product color the range offered by PROTON generally not attractive or unique. As one of its core values is customer focus, we recommend PROTON to be really customer oriented, knowing what the customers want and offer the range of colors that appeal to different market segment effectively.
However, having all those functional and symbolic characteristics will not do PROTON brand any good if it doesn’t offer excellence after-sales service to ensure that PROTON continues to be the preferred choice for those who purchase cars from them. It is encouraging to see PROTON has been strengthening their customer touch points, especially in creating a more friendly approach towards customer care by introducing its i.Care, a customer management centre totally dedicated to the needs of their customer which is important in brand building and earn trust from customers. CONCLUSION PROTON as the first Malaysian car manufacturer has established a very strong identification in the Malaysia automotive market. However, the consumers perceived that it has not delivered what is promised and expected. As a result, PROTON is unable to create positive response in the head and heart of its consumers. PROTON still has tremendous potential and capacity to perform better in offering its customers products and services of premier quality. The new concept of Proton MPV Exora 2, is hope that the enhanced and new brand images and recommendations will be able to help PROTON establish a positive response in the consumers’ memory which will lead the company to achieve its vision of becoming a Life Companion for its consumer. This will eventually enhanced and strengthen it sources of brand equity in order to compete ahead. 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. REFERENCE
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