Case Study Of Prototon's Marketing Strategy
To reposition the brand
Proton’s former chairman Tan Sri Mohd Khamil Jamil once said that Malaysians are not supporting Proton, a product as a result of our national pride. Unlike in Japanese and Korean market, their local car manufacturers received strong support from their domestic market.
Proton has always been labelled as a cheap and low quality car manufacturer since its debut in the 80s. The main reason is due to the public perception of the poor quality and unimpressive design. Proton’s major problem, is that the quality control is not on par with the global standard, which resulted in public complaints about the overall poor quality vehicles offered by Proton. Over time, this led to the unsatisfactory …show more content…
The company should still follow the same strategy but to reposition themselves as a world-class car manufacturer. The company should go for cost-focus strategy by looking at the large quantity of consumers in the local market, whom are very price-conscious.
In this digital era, Proton should take advantages of digital marketing as it can help to deliver the carmaker’s message and value proposition to the consumers. With the insights of digital marketing coverage, the consumers can enjoy a car-buying experience that is faster and simpler.
By looking at the promotion strategy of Proton, most of its promotional activities are focusing on the low-end products such as the Proton Saga and Proton Iriz. Such promotions are understandable by which the company is mainly focusing the large market segment of those consumers who are price conscious.
This marketing strategy is suits the company very well as per its goal and marketing objectives. But, the company should also focus the prestige segments of the market who want status and some who want style. Proton should introduce more promotions for their high end products to increase their …show more content…
Since its establishment, the company has delivered satisfactory results but due to some reason of innovations and challenges of competitive automotive market, the company faced a lot of losses and was trying to reposition its brand and improve its quality to satisfy customers.
Furthermore, the competition has become more intense since government’s liberalisation of the automotive industry which allow market forces to dominate the industry. Hence, the industry have better freedom in determining their selling prices and compete more aggressively with one another.
From the marketing mix point of view, the company has a better focus in terms of its pricing, place and promotion strategies, but its products that offered still need to be improved to regain the support of Malaysian consumers while continue to venture into oversea market.
Stood at a huge disadvantage when competing against other foreign companies due to lacking of economies of scale, it is hard to compete with others car manufacturers that can offer a better quality products at a lower price. It is important for Proton to find ways to increase its sale to achieve the optimum cost advantage to keep its product at a lower price range while still gaining