Perodua Marketing Mix

Nowadays, a successful company or organization requires one common characteristic which is determine and provide products or services that customer needed and satisfy them profitably. According to the Chartered Institute of Marketing, marketing is defined as the management process that identifies, anticipates and satisfies customer requirements profitably. In addition, Kotler also defined as the human activity directed as satisfying human needs and wants through an exchange process. In short, we knew that marketing is delivering customer satisfaction at a profit.

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Perusahaan Otomobil Kedua Sdn Bhd (PERODUA) is the Malaysia’s second largest automobile manufacturer after Proton. As the competitor of Proton, Perodua mainly manufactures small and compact cars, so Perodua actually does not compete with Proton for the same market. Although Perodua is not as well-known as Proton, but Perodua’s cars often catch the sight of Malaysian and achieve high value of sales. Because of the reason above, the author has decided and chosen the Perodua Company as the title of this assignment.
In this assignment, the author will discuss about the company background of Perodua, marketing mix variables such as product, price, place and promotion that used by Perodua to achieve high value of sales and some further recommendation for Perodua to improve in the future.
2.0 Company Background
2.1 History of the Company
Perusahaan Otomobil Kedua Sdn Bhd, also abbreviated to Perodua, established in 1993. To strengthen up the company, Perodua allies with the Japanese company which includes Daihatsu Motor Co. Ltd, Mitsui & Co. Ltd and other. Perodua headquarters is situated on Sungai Choh, Rawang, Selangor and include R&D testing laboratories, vehicle test track, manufacturing and engine plant and other.
Perodua Auto Corporation Sdn Bhd (PCSB) was set up in 2001 and there are three active groups which is Perodua Sales Sdn Bhd (PSSB) is responsible for sales and marketing Perodua vehicles, Perodua Manufacturing Sdn Bhd (PMSB) is manufacturing Perodua vehicles and Perodua Engine Manufacturing Sdn Bhd (PEMSB) assembles the vehicle engines and selected engine parts.
The company began its operations in 1994 and the Perodua Kancil which is small and economical, was the first car introduced to the Malaysian in August of the same year. In the present, Perodua sold more than 400,000 units of Kancil and it is the most successful sales in the record of Perodua. After that, it was replaced by Perodua Kelisa in August 2001.
2.2 Mission Statement
Perodua is set to become the biggest compact car manufacturer in the South-East Asia. In order to expand their market, Perodua also exports their cars to Singapore, United Kingdom and few numbers to Brunei, Nepal, Saudi Arabia and other country.
In order to become a world class and well-known automobile company, Perodua had drawn out some objective which is professionalism in all their operations, efficiency in utilising technologies and resources, resilience in meeting their challenges, optimising benefits to customers and stakeholders, dedication towards social responsibility to community, the environment and development of competent workforce, uniqueness in their products and aspiration to glorify the name of Perodua.
2.3 Current Product
Perodua established in 1993 and launched their first compact car, Perodua Kancil (Rusa) in August 1994. After achieved the amazing sales record, Perodua were more confident to roll out the cars. At the end of 2009, Perodua has sold more than 1.5 million units of numerous models cars, for examples, Perodua Kembara in August 1998, Perodua Kenari in June 2000, Perodua Kelisa in August 2001, Perodua Myvi in May 2005, Perodua Viva in May 2007, Perodua Nautica 4WD in May 2008 and Perodua Alza in November 2009.
Perodua Viva is a city car that manufactured by Perodua since May 2007 and it is the replacement of Perodua Kancil and Kelisa which is discontinued. All Perodua Viva models implanted Daihatsu DVVT engines, dual airbag and ABS only available for premium version. The Perodua Viva has six models which are 660EX, 850EX, 1.0SX, 1.0SXi, 10EZ and 1.0EZi.
Perodua Myvi was produced by Perodua since May 2005, based on the Daihatsu Sirion/Boon and Toyota Passo. The cooperation with Daihatsu and Toyota makes Myvi is the bestselling car for 2006 until 2009 in Malaysia. Perodua Myvi embedded with two water-cooler, four-stroke engines, and electronic fuel injection, able to boost up to 106mph. The Perodua Myvi SE also built with CD player, USB and leather seats to provide comfortable rides.
Perodua Alza is the first multi-purpose vehicle (MPV) that produced by Perodua, and available for booking in March 2010. The most attractive feature is the 7 seats and the second row seats are designed to slide forward and back to allow the flexibility. The air-conditioning also be redesigned to improve the air circulation. In the car entertainment, Perodua has integrated door-mount speakers, MP3 and WMA compatible CD player and steering mounted controls.
3.0 Definition of marketing mix
When you bring up a product or service to the market, you certainly will consider some of the choices and options. The marketing mix is the most popular marketing term, it is also the general phrase used to explain the different kinds of choices that organizations have to make in the process of bringing a product and service to market. This chapter will discuss the definition of marketing mix and its elements.
In the early 1950, Neil Borden defined the marketing mix as an integrated set of marketing strategies to realise organizational objectives and create higher value relationship with customers. In the late 1950, Jerome McCarthy, a prominent marketer, concluded the variables of marketing mix into four elements which is product, price, promotion, and place.
According to the Marketing Principles and Perspective by William O. Bearden, the most common definition of marketing mix is the overall marketing offer to appeal to the target market. It consists of decisions in four basic areas which is product, pricing, integrated marketing communication and distribution.
Nowadays, there is a new definition of the marketing mix and Neil H. Borden in 1965 increase the marketing mix to seven areas, which contain people, physical evidence and process. The most interesting thing is some people think that four Ps are out-dated and suggest a customer-oriented model which is four Cs, including customer needs, convenience, cost to user and communication.
4.0 Marketing Mix Variables
4.1 Product
Rendering to the Marketing Edition 6, product was defined as anything that can be offered to a market for attention, use or consumption that might satisfy a want or need. Product can be divided into two categories, which are tangible or intangible. Tangible product is physical object that customers can actually touch, such as a motor. An intangible product is a service based product that cannot be touched, such as car repair.
Presently, Perodua has launched various products that can satisfy everyone from different social classes. For examples, Perodua has released Perodua ViVa 660cc for those people that require low performance and economical, Perodua Myvi 1000cc for middle-class people and Perodua Alza 1500cc that suitable for high-performance user and families. Besides that, Perodua also provides different colours in same model. For examples, Perodua Myvi is available in Ebony Black and Classic Gold for classic lovers, Olive Green and Mocha Silver for natural lovers, Glittering Silver and Oozy Orange for those who wants extraordinary and unique colour.
4.2 Price
Price is the amount money charged for products or services that customers exchange for the benefit of having or using the product or service.
Perodua has implanted different price to various models of cars. For instances, Perodua ViVa 660cc only costs about twenty five thousands, moreover, Perodua Myvi costs about forty thousands and Perodua Alza costs about fifty five thousands.
Perodua also provide several types of payment method to benefit everyone. For examples, Perodua accepts credit card payment for the deposit, cheque and bank transfer also acceptable to replace cash as a safe method. Perodua also provide car loan with 3.5% to 4% interest from 5 to 9 years, you only need to pay hundreds ringgits as the instalment.
4.3 Place
Place represents the location when the product and service can be purchased. A more detail definition about place is making goods and services available in the right quantities and locations when customers want them. When different target markets have different needs, a number of place variations may be changed. Thus, there are two categories which are urban areas and suburban areas.
Perodua targets most of its sales, service and showrooms on the urban areas because of high population. For instances, Perodua manufacturing and engine manufacturing Sdn Bhd is situated on rawang, meanwhile Perodua Sales and Service Centres are mainly located on Kuala Lumpur, Petaling Jaya, Shah Alam and other. Besides that, Perodua also locates minor sales and services centres on the north and south Malaysia, such as Johor Bahru, Butterworth, Perai and Alor Setar. [1]
4.4 Promotion
Promotion is a communication process that builds and maintains favourable relationships by persuading publics to accept its products and services. Publics can be individuals and organizations that have interest in the business. Thus, there are various types of promotion, such as personal selling, sales promotion, advertising and public relations.
Perodua Sales and Services Centres provide well trained sales staffs and promoters to sell their vehicles and provide information to the individuals. To achieve their sales target, Perodua also is having sales promotion, such as discount up to RM 2000, free gift as sterling lock and touch and go card. Perodua also offer 1-hour super services and extended warranty programme to benefit the customers.
Besides that, Perodua often advertises their products in different types of media such as television, internet, and billboard. Perodua advertises a lot in TV commercial especially during public holiday such as National Day, Chinese New Year, Deepavali, and Hari Raya Puasa. Moreover, Perodua also cooperates with bank as the finance and insurance partners to promote their products.
5.0 Further Recommendation
Nowadays, global warming issue is becoming more and more serious. In my opinion, Perodua can improve their products under this critical issue. Perodua can implant the latest automobile technology to produce safer, energy efficient, and less polluting cars.
For examples, to correspond the rising petrol prices, Perodua can research and develop energy saver, battery electric and hybrid vehicles. Besides that, Perodua also can replace the steel casing of the car to aluminium or carbon fibre, this method will increase the lightness and strength.
In addition, Perodua can stimulate the sales by having contest, rebates, premiums, and low interest. For examples, Perodua can offer rebate to those who trade in their old car. Perodua also can work with the bank to lower the interest of loan so that low income people can purchase the car.
6.0 Conclusion
In conclusion, the marketing mix that includes product, price, place and promotion, is very importance in any company or organization to achieve their targets and objectives. The most obvious evidence is when the end of year, companies comes up with their tremendous net profits. Thus, marketing is the integral part of the economy.
The first importance of marketing mix is that customers can get the opportunity to know about various products that are available in the market. The marketing mix also helps us to introduce the uniqueness of your company and product.
Marketing mix also create a healthy competition among companies and increase their level and quality. Meanwhile, consumers are able to enjoy the better product and service with a low price. In other words, marketing mix generates many companies, either directly and indirectly, such as advertising, broadcasting, newspapers, and other companies.
Finally, the most importance value of marketing mix is to build a balanced market, avoid dominant companies to control the prices and establish monopoly over the product and service.