The Perusahaan Otomobil Kedua Sendirian Berhad

April 19, 2019 Critical Thinking

The Perusahaan Otomobil Kedua Sendirian Berhad (Second Automobile Manufacturer Private Limited), usually abbreviated to Perodua is Malaysia largest car manufacturer (Government linked company), which the headquarters is located in Sungai Choh, Serendah, Rawang Selangor. It was established in 1992 and launched its first car, the Perodua Kancil in August 1994. Perodua mainly produced minicars and superminis, and did not have models in the same market segments as other local car manufacturer. In recent years, its targeted market segments have started to overlap with especially in the super compact segment, where the Perodua Myvi has fought off the other local cars and is now competing with the main recent local cars.
Perodua launched their first compact car, Perodua Kancil 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.
Perodua does not design or engineer its main components, such as engines and transmissions, in house. The cars have historically used Daihatsu component designs Perodua’s shareholders currently include the UMW Corporation (38%), Daihatsu Motor Co. (20%), Daihatsu (Malaysia) (5%), MBM Resources (20%), PNB Equity Resource Corporation (10%), Mitsui ; Co.(4.2%) and Mitsui ; Co. (Asia Pacific) (2.8%). Perodua has been quite successful in its business ventures. The automobile manufacturer is popular in Malaysia, with the Perodua Myvi having sold 80,327 units in 2006, outselling its rival’s best selling car. In 2012, Perodua sold 189,000 units of vehicles and is a record of its highest sales history Perodua is maintaining its sales target at 209,000 units this year, despite expectations of a challenging environment following the implementation of the Sales and Services Tax (SST) on Sept 1, 2018. In 2015, Perodua has recorded a history of producing people-friendly vehicles with the first EEV EEV (Energy Efficient Vehicle) in Malaysia, namely Perodua Axia. Perodua Axia is a compact oil compact vehicle. After the axia perodua is securely marketed 2 years, Perodua once again stepped up with the first Perodua Sedan in Malaysia namely Perodua Bezza. 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 utilizing technologies and resources, resilience in meeting their challenges, optimizing 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. Below are the former and current products of Perodua since 1994 until present :-

Products(Former & Current) Years
Perodua Kancil 1994–2009
Perodua Rusa 1996-2003
Perodua Kembara 1998-2008
Perodua Kenari 2000-2008
Perodua Kelisa 2001-2007
Perodua Viva 2007-2014
Perodua Nautica 2008-2010
Perodua Myvi 2005-present
Perodua Alza 2009-present
Perdua Axia 2014-present
Perodua Bezza 2016-present

The definition of marketing mix is simple. It is a marketing tool that combines a number of components in order to strengthen and solidify a product’s brand and to help sell the product or service. Companies have to come up with strategies to sell their products, and coming up with a marketing mix is one of them. It was in the late 1940s when the term “marketing mix” first emerged. Marketer E. Jerome McCarthy came up with the first of the theories for marketing mixes. This was called the Four P’s, representing product, price, promotion and place.
The 7Ps model is a marketing model that modifies the 4Ps model. The 7Ps is generally used in the service industries. Here is the expansions from the 4Ps to the 7Ps marketing model:

Product – Quality, Image/Design, Branding, Features, Variants, Warranties, Availability , Packaging, usefullnes.
The product in service marketing mix is intangible in nature. Like physical products such as a soap or a detergent, service products cannot be measured. Tourism industry or the education industry can be an excellent example. At the same time service products are heterogeneous, perishable and cannot be owned. The service product thus has to be designed with care. Generally service blue printing is done to define the service product. For example – a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be.
Promotion – Special offers, Advertising, Direct marketing, Leaflets/Posters, Free gift, Competition.
Promotion have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting themselves rigorously. Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves above the rest by advertising or promotions.

Price – Discounts, Credits, Payment Methods, Free or Value-added elements.
Pricing in case of services is rather more difficult than in case of products. If you were a restaurant owner, you can price the people only for the food you are serving. But then who will pay for the nice ambiance you have built up for your customers? Who will pay for the band you have for music? Thus, these are the elements have to be taken into consideration while costing. Generally service pricing are involves taking into consideration labour, material cost and overhead costs. By adding a profit mark up you will get your final service pricing. You can also read about pricing strategies. Here on we start towards the extended service marketing mix.
Place – Retails, Wholesale, Mail order, Internet, Direct sales, Peer to peer, Multi Channel.
Place in case of services determine where is the service product going to be located. The best place to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area.

People – Employees, Management, Culture/Image, Customer service, Training and skills.
People is one of the elements of service marketing mix. People define a service. If you have an IT company, your software engineers define you. If you have a restaurant, your chef and service staff defines you. If you are into banking, employees in your branch and their behaviour towards customers defines you. In case of service marketing, people can make or break an organization. Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show that their staff is better than the rest. Definitely a USP (unique selling proposition) in case of services.
Process – Customer focus, Business-led, IT-supported, Design features, Research and development.
Service process is the way in which a service is delivered to the end customer. Lets take the example of two very good companies – Mcdonalds and Fedex. Both the companies thrive on their quick service and the reason they can do that is their confidence on their processes. On top of it, the demand of these services is such that they have to deliver optimally without a loss in quality. Thus the process of a service company in delivering its product is of utmost importance. It is also a critical component in the service blueprint, wherein before establishing the service, the company defines exactly what should be the process of the service product reaching the end customer.
Physical evidence – Sales/staff contact experince of brand, product packaging, online experince, comfort, facilities, smart.
The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and this also serves good food. Which one will you prefer? The one with the nice ambience. That is physical evidence. Several times, physical evidence is used as a differentiator in service marketing. Imagine a private hospital and a government hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator.
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. 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.
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.
Perodua targets most of its sales area, place, 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 , Ipoh and Alor Setar.
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, Christmas and Hari Raya Puasa. Moreover, Perodua also cooperates with bank as the finance and insurance partners to promote their products.
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. Perodua also can consider to launch MPV slightly bigger or spacious than Alza, where will be more comfortable for families who has more members. This can avoid them travel in more cars, where indirectly in the other point, can reduce traffic, save money and time, and of course less cars on the road.
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 and also more years of warranty.
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