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PART E: PROMOTION

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by

izzuddin razak

on 11 December 2014

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Transcript of PART E: PROMOTION

PART E: PROMOTION
PART C: PRICE
Number of channel level
Channel level
Branches and Dealers
Indirect channel

PART D: PLACE
1) Concise analysis on Perodua advertising strategy with example
Perodua pricing approach was based on cost-based pricing.
Due to the government’s policy to reduce car prices.
Company’s cost serve as a price floor of which a good should not be priced under it or else the marketers will be selling each unit at a lost.
Perodua initiated plans to bring down the cost of ownership.
Types of cost
Fixed cost : Perodua initiated plans to bring down the cost of ownership.
Variable cost : The cost that vary directly with level of production
Total cost = The sum of fixed cost and variable cost.

General Price Approaches
Example informative advertising
• Budget setting
satisfied with their product
feel affordable to purchase with Perodua.
Example budget setting advertisement
• Developing Advertising Strategy
message strategy.
creative concept.
message execution.
Example developing advertisement
• Objective Setting
Informative advertising
Persuasive advertising
Reminder advertising
• Evaluating Advertising Campaigns
use past sale
profits to evaluate the effective and efficiency of advertisement.
2) Concise analysis on Perodua sales promotion strategy with example
Perodua choose business promotion as their sales promotion tools. They make a trade show to separate the information about their product as example for the Perodua Axia they have shown at the Perodua showcased the Global Model A Segment Space (GMA) concept, Kuala Lumpur International Motor Show in November.
3) Public Relation
customer day
initiative of Perodua
PART B: Product
The level of product
Core product
The actual benefit that the buyers get when purchasing a Perodua car is transportation. Buying a Perodua car allows the buyer can move around in a vehicle without depending on public transport.
 
Actual product
Perodua produced a motor car that is capable of belonging, with attractive appearance and multi-functions equipped in the car.
 


Augmented product
After the sale, customers can repair their cars for free within a specific time after they bought the car if there are any damages or malfunctions.
Guarantee
Perodua believe and assurance that their product will perform up to the expectations and if not, the customer can make complaints and can repair for free but Perodua will not exchange that car with new car.

Warranty
All Perodua cars has 3 years warranty period (3-year/100,000km manufacturer’s warranty) with an optional (2-year/50,000km extended warranty)

Customer service
1- 24 Hour Call Centre Service
In the event of a breakdown members are required to call the toll free number, 1-800-88-5555. The call centre will dispatch a rescue team to the location of the vehicle. This service is available 24 hours a day and 7 days a week.

2- Free Towing Services (to the nearest Perodua Workshop)

3- Battery/Home Delivery Services

After-sale service
Perodua are sensitive to customer needs and loyalty to Perodua car. With the after-sales service, maintenance is based on the implementation of preventive measures to reduce the risk of severe damage that can create problems. Therefore, Perodua offer a service vehicle maintenance schedule to ensure customer’s vehicle is always at its best level and provide optimal performance in any situation.

Product/service classification offerings classification
Consumer product

.Perodua Kancil(1994–2009)
.Perodua Rusa (1996–2003)
.Perodua Kembara (1998–2008)
.Perodua Kenari (2000–2008)
.Perodua Kelisa (2001–2007)
.Perodua Myvi(2005–present)
.Perodua Viva/Viva Elite 2007–present)
.Perodua Nautica (2008–2010)
.Perodua Alza(2009–present)
.Perodua Axia(2014-present)

Consumer service

.Maintenance service packages (from 1,000km till 100,000km).
.Part replacement and repair
.Accident repair & body repair
.Insurance claim
.Insurance & road tax renewal
.Air-Conditioner Service
.Radiator Coolant Replacement
.Brake Bleeding System
.Front & Rear Brake Service
.Valve Clearance Adjustment
.V-Belt Replacement
.Wiper Blade Replacement Service

Individual product and service decisions
Product attributes
Product quality
Level
All Perodua cars performance quality is good and it performs its functions well.
Consistency
Perodua cars are freedom from defects and consistency in delivering a targeted level of performance.

Product features
Product style and design
Branding
New brand statement, “Building Cars, People First,” is Perodua’s new visual identity.
The green color represents social responsibility to the environment and the community.
The red color symbolizes the development of competent workforce and resilience in meeting challenges in the globalised world.


Packaging
Perodua car does not require packaging because it comes with the original design of the car.

Labelling

This logo was used in the Perodua car nowadays.

Product support service
All Perodua cars has 5 years warranty period.

Product line
Perodua products are Economy cars.

Product line length.
Perodua Company always comes with new design and new car class. For example Perodua Kancil and Perodua Kelisa are city car class while Perodua Alza is compact MPV design car class.

Product line stretching
Perodua Company lengthens its product line by upgrade the car into new style and design. For example Perodua Myvi first generation that already upgrade into Perodua Myvi second generation that looking very stylish and modern design. Perodua Viva also have been upgrade into Perodua Viva Elite that look more sporty.

Product mix
Perodua Company not only sells economy cars but they also have their own spare parts like Perodua oil filter and Perodua genuine oil.

New-Product Pricing Strategies
Perodua bringing out a new product faces the challenge of setting prices for the first time by using market-panetration pricing.
Market-panetration pricing
Perodua Company set a low initial price to penetrate the market quickly and deeply to attract a large number of buyers quickly and win a large market share.
Example : Perodua used penetration pricing to boost its success in the India market.

Price Adjustment Strategies
a) PROMOTIONAL PRICING
Promotional pricing is when price are temporarily priced below list price or cost increase demand.

 Special Event Pricing
-Perodua company give special list price especially on festive season, early year promotion and national day.

 Cash Rebates
-It will given to the special buyer and special promotion or month, so by the cash rebates that given it will cut the actual price for the product.

 Longer warrantees
-Perodua have upgrade their warrantees from 3 years to 5 years for their new car production for example Perodua Axia warrantees will get 5 years warrantees.

 Free Maintenance
-For Perodua it give the best free maintenance for their warranty customer and focused on their production product.

b) SEGMENTED PRICING
Their company also provide certain scheme for graduate students or undergraduate students by let zero deposit for their product.

c) DISCOUNT AND ALLOWANCE PRICING

It reduces prices to reward customer responses such as paying early or promoting the product.

 Discount
-It given discount to their customer on selected promotion for example discount given on Merry Christmas promotion to their customer by their organised planning.

d) PSYCHOLOGICAL PRICING
It occurs when sellers consider the psychology of prices and not simply the economics.

 Reference price
In Perodua the prices that company decide to sell based on market priced and it compared to their competitors and remembering past prices and assessing the buying situations. For example the price of Perodua Axia is mutually same as price of Perodua Viva.

Strategy used for marketing intermediaries
Middleman
4 basic types of intermediaries
Banner, flyers, SMS blast system and radio
Strategic location

Type of retailer
Various type
Perodua
i)Perodua Auto Corporation Sdn Bhd
ii)Perodua Sales Sdn Bhd
iii)Perodua Manufacturing Sdn Bhd
iv)Perodua Engine Manufacturing Sdn Bhd

PART A: COMPANY BACKGROUND
COMPANY BACKGROUND
COMPANY PRODUCT AND SERVICES
COMPANY MISSIONS
ANALYSIS ON CURRENT BUSINESS PORTFOLIO
POSSIBLE STRATEGIES ON CURRENT BUSINESS PORTFOLIO
COMPANY STRENGTH WEAKNESS OPPORTUNITY AND THREAT ANALYSIS

COMPANY BACKGROUND
Perusahaan Otomobil Kedua Sdn Bhd, PERODUA
Established in 1993
Malaysian and Japanese (Joint Venture)
Operations in 1994
Headquarters (Sungai Choh, Rawang)

Share holder
Perodua Group
Perodua Auto Corporation Sdn Bhd
Workforce
Production Capacity
Sales & Service
Overseas

COMPANY PRODUCT AND SERVICES
COMPANY PRODUCT AND SERVICES
I. Maintenance service packages (from 1,000km till 100,000km). Service interval at every 10,000km or 6 months whichever earlier.
II. 45 minutes vehicle serviced without any complaint.
III. Part replacement and repair.
IV. Accident repair and body repair.
V. Insurance claim.
VI. Insurance and road tax renewal.
VII. Warranty job.
VIII. Air-Conditioner Service.
IX. Radiator Coolant Replacement.
X. Brake Bleeding System.
XI. Front and Rear Brake Service.
XII. Valve Clearance Adjustment.
XIII. V-Belt Replacement.
XIV. Wiper Blade Replacement Service

COMPANY MISSIONS
I. Professionalism in all our operations.
II. Efficiency in utilising technologies and available resources.
III. Resilience in meeting our challenges.
IV. Optimising benefits to customers and stakeholders.
V. Dedication towards social responsibility to community, the environment and development of competent workforce.
VI. Uniqueness in our products.
VII. Aspiration to glorify the name of PERODUA

ANALYSIS ON CURRENT BUSINESS PORTFOLIO
POSSIBLE STRATEGIES ON CURRENT BUSINESS PORTFOLIO
COMPANY STRENGTH WEAKNESS OPPORTUNITY AND THREAT ANALYSIS
appointed Spin Communications Sdn Bhd and Lowe & Partners Sdn. Bhd .
advertising agency effective from 22 May 2012.
suit Perodua needs.
covers the organisation background, proposed strategy, creative solutions and execution plans.
ADVERTISING
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