PERODUA INTRODUCTRY

The automotive sector is a key industry in a Malaysian economy. There are given major
challenge facing the automotive manufacturing, in exacting globalization, liberalization and
growing competition, there is a must to evaluate the tactical trend and the competitive
advantage for the domestic automotive sector. This study undertakes to explore the
environmental factors that are likely to influence the marketing performance in PERODUA
Malaysia. Perodua does not contend with Proton for the similar market position because
Perodua mostly produce small-compact cars. . In Malaysia Perodua is second automobile
manufacturer which after Proton.
PERODUA is a leading automotive firm in the local automotive industry, with aspirations of
becoming a global organization. Founded in 1993, PERODUA has grown from a company
offering a single invention into a strong and dynamic Group such as the:
Perodua Kancil August 1994
The Perodua Rusa March 1996
The Perodua Kembara August 1998
The Perodua Kenari - June 2000
The Perodua Kelisa August 2001
The Perodua Myvi May 2005
The Perodua Viva - May 2007
The Perodua Nautica 4WD May 2008
The Perodua Alza November 2009
MARKET CHANNEL
Customers mostly look at cost and functionality when deciding which car to
purchase. Running costs are an important consideration, especially as a
result of the recession and the squeeze on incomes. Relationship marketing
is marketing program or strategy to protect an existing customer base
through an ongoing process by creating new value for customer. Relationship
marketing ensures a loyal base of customer. As the relationship develops the

buyers starts to feel safe with the supplier and thus trust is developing. The
main input of this study is towards better perceptive of present car market in
Malaysia would benefit the academicians, manufacturers and car sellers in
knowing the impacts of outside factors on car purchaser buying pattern and
the importance of family member in influencing cars purchases. A firms
division objectives will eventually be high relatedsome will enhance each
other while others will compete. For example, as we have discussed, more
exclusive and higher service distribution will generally entail less intensity
and lesser reach. Cost has to be traded off against speed of delivery and
intensity (it is much more expensive to have a product available in
convenience stores than in supermarkets, for example). PERODUA brought
out the kancil with the view of creating new market segment for people
preferring a compact,less expensive and easy to menevuer the car.
However,the image stuck in the mind that stuck in the mind of many people
was that an inexpensive brand and this would not help in the future as the
market opens and is flooded by foreign models of comparable if not cheaper
prices. The new look PERODUA was launched in October 1999 was simple
facelift. It need to focus on its primary target market young people
Including student for that it needs more fashionable and sporty image.

For a company it is very necessary to have updated date and to have a close
watch and to assess the ever changing environment around them. There are
2 types of environment and there are Micro Environment and Macro
Environment.

MICRO ENVIRONMENT
Micro environment factors are factors close to a business that have a direct impact on its
business operations and success. Before deciding corporate strategy businesses should carry

out a full analysis of their micro environment. As all businesses need customers, they should
be Centered (Orientated) around customers. The firm's marketing plan should aim to attract
and retain customers through products that meets their "wants and needs" and excellent
customer service. Employing staff with relevant skills and experience is essential. This
process begins at recruitment stage and continues throughout an employee's employment via
ongoing training and promotion opportunities. Suppliers provide businesses with the
materials they need to carry out their business activities. A supplier's behavior will directly
impact the business it supplies. For example if a supplier provides a poor service this could
increase timescales or product quality. An increase in raw material prices will affect an
organizations Marketing Mix strategy and may even force price increases. Close supplier
relationships are an effective way to remain competitive and secure quality products. While
for the micro environment consists of 6 factors in PERODUA such as customer, company,
competitors, supplier, Marketing Intermediaries & public.
CUSTOMER
Customer can be divided into 5 types such as consumer market, business
market, reseller market, Government market & global market. The consumer
market in Perodua manufacturing shows that Perodua Company comes with
varies vehicles that are able to attract buyers particularly these who want an
reasonable yet efficient vehicle. The company mostly targets on individuals
or family who want to buy worth car at a quality as Perodua Company sets
up the prices that are sensible and affordable by most consumers. Perodua
Myvi is product on May 2005 by Perodua Company which is one of the
examples for individual or family use. Besides that the business market is the
companies which buy goods and services are to be used in the production id
other goods For instance, Perodua Company buys the parts from other
countries but the assembling is done in Malaysia. The companies that
purchases the goods or services and resell the product without making any
changes to it. For examples, Perodua dealers get the manufactured goods
from the main company and finally distribute to them without making any
changes of the cars. For government market they may pay for it to be used it

in the production of goods and services. For example, the model of Perodua
Myvi, Perodua Kancil, Perodua Viva are provided to the government for the
use of National Parade Day. The products used for the use of the government
to carry on with the government duties. For international market, Perodua
Myvi purchases for the overseas market such as United Kingdom, Singapore,
Brunei, Fiji, Nepal and Sri Lanka.

COMPANY
This segment is about the togetherness which should be there among all
departments so that the product will be delivered to the customer in the
desired time. This process will be an incomplete process if there are
disagreements between departments, which will result in a delay of not
delivering the product to the customer on time.

Competitors
There are two types of competitors that will affect the sales of Perodua Company which are
direct and in direct competitors. Direct CompetitorsThe companies which manufacture the same
products within the same industry. For instance, Suzuki, Toyota and Proton are Perodua
Companys direct competitors as the companies sell similar types of vehicles within the same
industry. Meanwhile , indirect competitors are mean that when any company which competes for
the same customer dollar .The indirect competitors for Perodua will be Toyota, Proton, Naza,
Honda, BMW, and Mercedes. This is because they are also produce cars and they are also
competing for the consumer dollars. Perodua, the current market leader in the automotive
industry with a claimed 31% market share, is still confident of achieving its 2013 target of selling
194,000 vehicles by yearend despite potential challenges by competitors launching new offerings
in the second-half (2H) of 2013 to excite the market. So when it was announced that the
Government would not force both Proton Holdings Bhdand Perusahaan Otomobil Kedua Sdn

Bhd (Perodua) to merge, that it was the best thing to do. Allowing competition to flourish
between the two national makes to would ensure that both companies strive to improve on the
products they manufacture for Malaysians to buy. Competition between both companies, which
currently enjoy pricing advantages compared with their other rivals, would ensure that the cars
they makes would be better one model after another.In short, even within an industry that is
protected, there should be elements of enterprise and competition.

SUPPLIERS
A contributory wholly-owned by Daihatsu (M) Sdn Bhd, DMM Sales Sdn Bhd was formed in
1994. Since then, DMM Sales have successfully established as the major merchant of Perodua
vehicles in Malaysia, with sales/service outlets in most of the states. Factor study and
hierarchical regression study are used to approve the theoretical model and to test the proposed
hypotheses in the study. The findings showed that gender, level of income, level of education
and age have impact on car buying pattern. These hypotheses are accepted product, price and
promotion competency have significant influence on the cars purchased.
Perodua Circle (previously recognized as Kelab Automotif Perodua Malaysia) was founded in
1998 with the main objective of fostering better relationship between Perodua and its vehicle
owners. We are pleased to inform that Kelab Automotif Perodua Malaysia (KAPMA) has been
rebranded with a more vibrant new identity. KAPMA is now known as PERODUA CIRCLE.
The Perodua Circle members also benefit from activities such as car care workshop, factory visit,
treasure hunt, bowling tournament and many more.

Marketing Intermediaries
Marketing Intermediaries is also known as the middle man. The mediating is usually done by a
company in order to distribute or promote goods to the customer .The sales Manager stated that
Giga Shipping Company transports all the Perodua Products worldwide. There is also a trailer
company which provides trailer service to transport products around Malaysia. Besides
marketing intermediaries, mediating can also be financially. As an example, EON bank, RHB
Bank, Islam Bank act as a mediator in order to promote Peroduas cars. These companies provide
a loan system so that the customers could have a minimum payment monthly and enjoy the same
benefits of a comfortable car.

PUBLICS
Publics could be defined as a crowd of people who have an interest in a company and also who make
an impact to an organization to achieve its objectives. Moreover, a company will take this
consideration and try building up relationships and also offer helpfulness to these groups. There are
the 7 types of publics such as local, media, citizen action, government, general, internal and financial.
Local A community relations officer is appointed by the company to be present at meetings with the
local publics. Perodua Myvi customers are eligible to join the club via (http://www.myviclub.com/).
There is a public relations officer is appointed from Perodua Company regarding this club. On the
other hand, the officer also can meet with the customer and makes interaction with the customer.
Financial are company issues an annual publication which is the annual report which also includes
the financial statements in the company. The shareholders were given by the company . All the
Perodua Company share holders receive the annual report of the company in order to keep the
shareholders informed about the financial status of the company. Media can be described as a
company would promote their product more with a positively media coverage . For example,
Perodua Company promotes Perodua Myvi on television advertisements. The official advertisement
is telecasted on television. Also, they also advertise the product on the World Wide Web. General
refers to the general publics view in the company is called general .Through our research, most of
the customer would like to view on the Perodua Company. Hence, positive or negative, it is basically
what the customer thinks about the company.

MACRO ENVIRONMENT
Macro Environment contains external forces that an organization can't directly control, instead
organizations need to manage their macro environment in a way that benefits them. A PEST
analysis is used to identify the external forces affecting an organization/making up its Macro
Environment. This is a simple analysis of an organizations Political, Economical, Social and
Technological environment. A PEST analysis incorporating legal and environmental factors is
called a PESTLE analysis.
POLITICAL

If we are going to check on the high selling prices of the national cars of Malaysia because of
high production costs and lack of vendor efficiency, there is a big possibility that the local market
will be ruled by imported cars. As a result, there will be increase in the number of the vehicles on
the road and there will be a glut of used cars in the market, because people will tend to trade their
cars for cheaper and imported brands (Frost & Sullivan 2002). On the other hand, the issue
regarding the environment is vital because it is considered as one of the most talk about topics in
the world. The environmental regulation in Malaysia can be traced back during the colonialism
of British which introduced the environmental standards about the mineral and agricultural
resources to Europe.

Economic
Primarily the issue of global financial crisis, which affected the local financial status of the
country .As a result, the government of the country is expecting a slow economic growth for the
country, which can affect the buying behavior of the customers. Furthermore, it had increased the
competition, which will impact the performance of Proton. However, the performance of the
automobile industry will be maintained and managed due to the huge total labor force.

Social
The growing population in the country is one of the factors which can affect the automobile
industry. This will give a greater number of markets. Furthermore, the ratio of car ownership in
the country is somewhat high or total of 1:5, which signifies that people are considering cars as
important things in their lives. Furthermore, people will also set on big-ticket items or consumers
are expected to put off buying different motor vehicles because of the employment market
uncertainty because of the global and local financial crisis.