Proton Holdings Berhad Report ( Group ASS MKT539) PDF

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this is also brand management assignment. the group assignment that provide proton holdings brand image. there are many things we get....

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UNIVERSITI TEKNOLOGI MARA KELANTAN

MKT 539 BRAND MANAGEMENT GROUP ASSIGNMENT PROTON HOLDINGS SUBMITTED TO: NIK ROZHAN BIN NIK ISMAIL

NAME

ID NUMBER

GROUP

NURUL ATIKAH BINTI MOHD NAZRI

2019805044

D2BA2403B

NUR FARZANA BINTI MAHIZAN

2019423542

D2BA2403B

NOR ZULAIKA ILYANA BINTI DZULKEFLI

2019253178

D2BA2403B

NUR AZAMIMIE BINTI ZULKIFLI

2019627798

D2BA2403B

SUBMISSION:

1st FEBRUARY 2021

PROTON HOLDINGS BERHAD INTRODUCTION 1.

PHASE 1: PROTON HOLDINGS STRATEGIC PLANNING i.

COMPANY BACKGROUND Name of company is Proton Holdings (PeRusahaan OTOmobil Nasional) also known as National Automobil Entreprise. PROTON is the Malaysian manufacturer and it was Malaysia’s only carmaker until the establishment of its competitor. The founder of PROTON HOLDINGS is Tun Mahathir Mohamad on 7 May 1983. PROTON HOLDINGS also has produced the first model of the Proton Saga in September 1985 in Shah Alam . PROTON also have two of the biggest factories in Shah Alam, Selangor and Tanjung Malik, Silver. PROTON HOLDINGS function mainly to manufacturer, assemble and sell motor vehicles and related products including accessories, spare parts and other components.

ii.

PROTON HOLDINGS SWOT ANALYSIS a) Strength The strength that have stated of PROTON HOLDINGS is National Auto Mobile Manufacturer of Malaysia. This gives the company a good base and loyal customers. This is mainly because of their 34 year old legacy and the modern technology that they use in their cars. Besides that, genuine quality and latest technology which is t he company mainly uses Japanese technologies to power their cars. The cars are quite friendly to the person and also do not dig a hole in their pockets. The cars can be easily used every day without any problem. The cars are sturdy and have a guarantee that they will work for a long time. Next, value for money . PROTON HOLDINGS cars are mainly targeted to the upper and middle class society who needs to buy a car. The cars have been budgeted in a way that they have great technology but are not over the top. The customer gets what they pay for and most of the time they

are satisfied with their car. Last but not least, it will be easily available in Malaysia. PROTON HOLDINGS cars are easily available in Malaysia and people can go for it anytime they like. Around the world they are mostly targeting United Kingdom and the cars can be found there as well. The last for strength of PROTON HOLDINGS is expanding on a global Level. For a long time, the company was bound to their local market but now they are changing their game. Some of the countries that they have already based themselves in are United Kingdom, Australia, Singapore and other countries. By now they have exported around 400,000 unites globally and among them 141,209 were in UK alone.

b) Weakness All the company or business they have weakness and no less also the PROTON HOLDINGS brand. One of the weakness is a smaller number of products. Even though Proton is budget friendly they do not possess much variety. At this time, they have around 8 cars available almost of the same budget. They should definitely work more on a diversified product catalogue. The others weakness is less exposure to the global market. Even though they are working on it, still the exposure is very less. They still have not reached big markets in Asia as well as other continents which they need to do pretty soon.

c) Opportunities PROTON HOLDINGS have an opportunity introducing luxury cars. They can definitely work on releasing some cars that are of high budget. This will help in targeting the Upper class of society and they can help in bringing the company into limelight. Having a variety in products often help a company a lot. Besides that, expanding their market. This is an obvious point as expanding does lead to exposure. They can definitely try big markets of India and USA to gain more consumers. They can launch area specific models to help them garner a strong market. They can also expand more in their home market through more options in cars as well as better advertisements. The opportunities in the PROTON HOLDINGS that they have get is launching hybrid electrical cars. As the fuel price increase so does the fret in consumers. The company may need to launch electrical cars in the near future to stay significant in the market. Electrical cars are Eco-friendly and helps people who

are

in

tight budgets. Companies around

the

world have already

started projects on the same thing. The last opportunities are introducing other kinds of vehicles. PROTON HOLDINGS cars are quite popular but as an auto mobile company they need to diversify themselves. Introducing vehicles like motorbikes can expand the market even more as there is a huge demand for them.

d) Threats However, each brand has threats from various factors which is increase in fuel price. A grave problem that the whole world is facing due to inflation. It affects the Asian markets the most and that is of it being a threatening point. The last treats for PROTON HOLDINGS are competitors. Competitors of Proton cars like PERODUA are rising and they are selling more cars. Also, foreign brands are approaching the Malaysian market because of the big market. iii.

PROTON HOLDINGS BRAND VISION. Brand vision refers to the ideas behind a brand that help the company to have a guide to achieve in the future. It reflects and supports the business strategy to make the change to their company brand, differentiates from their competitors, more resonates with customers, be energizes and inspires to the employees and partners, and precipitates a gush of ideas for marketing programs. The bad affect if the company brand does not have the brand vision is when absent or superficial, the brand will drift aimlessly and marketing programs are likely to be inconsistent and ineffective.

The brand vision for PROTON HOLDINGS that they have create for guideline to achieve the successful brand is to become a booming Malaysian automobile manufacturer operating in the international market by being customer oriented and producing competitively priced and innovative quality products. The objectives of the company are to spearhead the automobile industrialization and manufacturing procedures, to obtain and improve the technologies and industrial skills inside the industry, and to face the competitive challenges in the international market and improve their quality.

iv.

PROTON HOLDINGS ARCHITECTURE STRATEGIES. Brand architecture strategy means strategy that helps marketers determine which products and services to introduce. Which brand names, logos, and so on to apply for new products and existing product. According to Derek Smith, brand architecture shows us how the sub-brands of a larger whole are organized and how they related to each other. This will help a marketer see how to keep parts of a brand separate when needed, and also to allow them work together and boost in the marketplace. There are three steps to develop a brand architecture strategy which is defining brand potential, identifying brand extension opportunities and branding news products and services.

a) Defining brand potential. In the defining brand potential, there are three important characteristics which is brand vision, brand boundaries and brand positioning. •

The PROTON HOLDINGS brand vision is to achieve the successful brand is to become a booming Malaysian automobile manufacturer operating in the international market by being customer oriented and producing competitively priced and innovative quality products.

•

The PROTON HOLDINGS brand boundary is through the technology. PROTON HOLDINGS believe they can build stronger relationships, bringing distances between people, relationships, innovation and create stronger bonds to a better future for mobility.

•

The PROTON HOLDINGS brand positioning is to make sure their customers can see the benefit that they have in PROTON HOLDINGS new product. Customers will get the opportunity to buy the cheap car rather than others. For example, PERODUA VIVA AND PERODUA MYVI were expensive a lot compare with PROTON SAGA. Both the product also lacks of space because they were hatchback cars type while PROTON SAGA is sedan cars type that have more spaces than hatchback cars type.

b) Identifying brand extension opportunities. •

Brand extension is a new product introduced under an existing brand name. the brand extension that PROTON HOLDINGS use is line extension. Line extension means new product introductions within existing categories.

•

Equity implications of each extension need to be understood in terms of points-of-parity (POP) and points-of-difference (POD).

•

Points-of-parity (POP) are not necessarily uniquely attached to one brand but may in fact be shared with other brands. PROTON HOLDINGS has managed to achieve category points of parity with its car models extension. PROTON HOLDINGS also cars have always portrayed themselves as one of the competitive market leaders in the local automotive industry with its different car design accommodating to different target market. For example, PROTON EXORA is launched to target to hit on the mushrooming of MPV in the market. PROTON EXORA’S characteristic is much similar to its tight competitor, TOYOTA AVANZA and NISSAN GRAND LIVINA. These three different car models somehow share the same market requirement to accommodate to the family-based consumers.

•

Points-of-difference (POD) refers to attributes or benefits that consumers strongly associate with a brand positively evaluate, and believe that they could not find the same extent with a competitive brand. PROTON HOLDINGS stand a strong POD as it appears to be the first national car manufacturer, followed by PERODUA. This has differentiated them from the various cars marketed in Malaysia whom are solely foreign manufacturers, Japan and USA. PROTON come into sight with its nation pride and it has successfully tackled the interest of the local whom are seeking for an aura of patriotism and unity.

c) Specifying branding new elements. •

New products and services must be branded in a way to maximize the brand’s overall clarity. PROTON HOLDINGS use the branded house strategy. It also called umbrella corporate or family brand for all its products. In this model, the firm is the brand. Services and market sectors or practice areas are subsets of that primary brand and are not formally branded. For example, PROTON as a primary brand and under the PROTON brand there are many subsets which is PROTON X50, X70, EXORA and so on. Certainly, in all instances the subsets PROTON HOLDINGS brand is recognized but not to extent that they overshadow or detract from the PROTON HOLDINGS brand. In professional services, PROTON HOLDINGS have a single brand such as logo mark, marketplace positioning and messaging. The benefits of branded house strategy are PROTON HOLDINGS have a strong brand which is one with both high visibility and strong reputation requires careful nurturing.

•

Sub brands. Sub branding means the brand that under the main brand (primary brand) that will become secondary brand or subsidiary. Sub brands are typically created as an opportunity to attract and reach a new customer or audience towards the brand. The new brands are distinct but related to the main brand. Sub brands also have their logo, colour, size and so on. However, sub brands still have the same identity as the parent brand. PROTON HOLDINGS have their sub brands. There are many of brand name under the PROTON HOLDINGS which is produce the car. The example sub brands for PROTON HOLDINGS is PROTON IRIZ, PROTON PERSONA, PROTON X50, PROTON X70, PROTON WIRA, PROTON SAGA, PROTON PREVE, PROTON PERDANA and so on. All this sub brand has the different size, colour, capability, and model name. This shows that sub brands or new product of PROTON HOLDINGS carries both the parent brand name and a new name.

PHASE 2: DEVELOPING CUSTOMER BASED BRAND EQUITY AND BRAND POSITIONING i.

Identifying and Establishing Brand Positioning for New Brand

A) SEGMENTATION AND TARGETING Each user must have their target. This is because different users may have different brand knowledge structures. Therefore, perceptions also influence different choices about brands, and marketers need to identify what targets consumers want because without this understanding it can be difficult for marketers to say which brand associations should be held strong, liked, and unique for consumers to own. So, with that, let’s look at how to define and segment the market and select target market segments. In the marketplace, all groups of buyers have the potential to have interest, income, and access to products. Market segmentation in turn divides the market into different homogeneous consumer groups that have similar consumer needs and behaviors, and thus require a similar marketing mix. Market segmentation requires an exchange between costs and benefits. The more segmented the market, the more likely a company will be able to implement marketing programs that meet the needs of consumers in one segment. The gains, however, can be offset by the larger standardization reduction costs. Besides, market segmentation is a marketing strategy that involves large segmentation so the company is divided into any segmentation to get heirs customers who have the same needs and wants. It is used to identify their potential consumer and provide supporting data for positioning or achieving their objectives. The marketing mark of the PROTON company divides into several tactics and segmentation namely behavioral tactics, demographic factors, and psychographic factors. Behavioral Factors Behavioral factors mean that he segmented customers into several groups based on their knowledge, attitude towards the product, rate of use, or consumer response to the product. PROTON has targeted users from different backgrounds with different car models respectively as the PROTON offers a variety of models that customers can choose according to customer desires. They focus on the loyal and branded consumer. PROTON wants to build brand loyalty to their customers until they come out with new MPV cars like the PROTON X50 and PROTON X70 to their users. Apart from that, Suprima, Iriz, Preve, Inspira, Saga FLX, Savia Neo are also new models of Proton cars to attract existing and potential customers. Users loyal to PROTON tend to receive new car innovations by PROTON and can choose to connect themselves with PROTON by joining a membership club to get more information.

Therefore, new Proton car innovations tend to be accepted by consumers with strong brand loyalty to Proton cars.

Demographic factors Demographic factors mean that segmentation by demographic is based on several factors such as age, gender, occupation and level of education, and the perceived benefits of the products or services that PROTON may provide. The benefits may vary for each individual depending on the level of the customer in the life cycle. Examples of potential users for Proton Exora can be targeted by analyzing demographic factors. In the case of Proton Holdings Berhad (Proton), they focus on factors such as income, age, sex, race, and family when identifying targets. Proton targets consumers with family members of 3 to 6 members at competitive and affordable prices. They range in age from 25 years onwards with a family size of 3 to 6 members. To own a Proton Exora, consumers relatively have a monthly income of RM2,000 and above and provide consumer choice for all races. The Proton Exora is a family vehicle that combines sophisticated style, spacious interior space, which can accommodate 7 adults and has many uses, high-quality design, and good performance with an emphasis on value factor for money, another example of a proton car is the Iriz. Companies targeted by analyzing demographic factors, focus on customer mid-income factors and compact cars that are more suitable for women in terms of gender and consumer age range are 18 years to 40 years. The Iriz model looks sportier and teenagers will be attracted to buying a model like this.

Psychographics factors Psychographic factors mean that segmentation is based on customer lifestyle. This includes customers' attitudes towards life, career, property, social problems, or political institutions (Keller, 2008) in Malaysia. PROTON's entry into the local car market in 1985 has resulted in major structural changes in the automotive industry, which is reflected in the shift in the domestic car market, which previously relied on imported cars, especially Japanesemade cars. Therefore, the intentions and objectives of PROTON's investment in the automotive industry can influence the purchasing power of consumers who are patriotic to the country by buying national cars. Furthermore, PROTON not only produces cars for local consumers but also expands the automotive industry to local and international. For example, Proton car is Exora as we know, the export market for Proton Exora will be an important key for PROTON to achieve long-term success as a reliable vehicle manufacturer. Proton Exora has received an impressive number of bookings at the Thailand International Motor Expo 2009

held in Bangkok. The company's order book is filled with 1,388 bookings from 25,220 orders placed at the Expo. The Proton Exora, which made its Thai debut at the show, is the bestselling Proton model with 825 orders, or almost 60 percent of total orders. Therefore, enhancing the existing Proton Exora features by introducing new concept cars with an emphasis on improving efficiency, convenience, and fuel safety at competitive prices, will increase Proton's sales and market share in the market. In general, the market segment and target market of Proton Exora can be summarized with the status of users who want to own this Proton Exora mostly from family groups. Also, the monthly income of users required to own a Proton Exor car is at least from RM2000 and above. Proton Exora is also more marketable for consumers aged 25 and above and regardless of race because its stylish design can attract anyone who is already married and has a large number of family members such as 3 to 6 family members. Proton Exora is also targeting the medium to high-class lifestyle making it one of the best-selling cars in the Proton company.

B) COMPETITIVE FRAME The nature of Competition occurs at least implicitly. This can indirectly decide to target a specific type of user often determines the nature of the competition because other firms have also decided to target that segment in the past or plan to do so in the future. Besides, consumers in the segment can also see other brands in their purchasing decisions. This causes competition to occur. Competition analysis considers a large number of factors including the resources, capabilities, and possible intentions of various other companies so that marketers choose a market in which consumers can be served and marketers gain higher profits. In indirect competition strategists state that marketing must not be determined its competition is too narrow. Research on incomparable alternatives shows that even if a brand does not face direct competition in its product category, or does not share performance-related attributes with other brands, it can still share more abstract relationships and face indirect competition in a broader product category. This may be the result of wider category competition or upcoming brand growth, or it may occur when the same functionality can be performed by different product types. For example, Proton cars and Perodua cars. Each has its advantag...