FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE

PRINCIPLES AND PRACTICES OF MARKETING

(MKT420)

GROUP ASSIGNMENT 1

ANALYZING THE MARKETING ENVIRONMENT

PERODUA

PREPARED BY

NUR KHAIRUNNISA BINTI ALLIRAHMAN

2023212522
NUR NAZWA YASMIN BINTI KASIM
2023222496
MICHELL VINA UMANG ANAK NICODEMUS
2023858546
MOHD HELMI BIN KIPRAWI
2023404672

PREPARED FOR
MISS ARDIANA MAZWA RAUDAH BINTI AMIR ABDULLAH

SUBMISSION DATE
3 DECEMBER 2023
TABLE OF CONTENTS

INTRODUCTION....................................................................................................................... 1

MARKETING ENVIRONMENT AND COMPANY...........................................................3

........................................................................................................................................................ 5
INTRODUCTION AND COMPANY BACKGROUND

Perusahaan Otomobil Kedua Sendirian Berhad (Second Automobile Manufacturer

Private Limited) or often known as Perodua is Malaysia’s national second automaker.
Perodua was established in year 1993. Before being made public, the company was known
by the codename "M2" because it was first kept in secrets.

Originally Perodua concentrated on offering small, A-segment hatchbacks to

consumers in Malaysia in order to avoid competing with Proton. Prime Minister Tun Dr.
Mahathir Mohamad officiated over the nation's first Perodua factory's opening ceremony on
August 1, 1994. The first Perodua Model, the Kancil, rolled off the assembly line just 28 days
later, and the rest is history. The public embraced the Kancil, and it was this vehicle that
stoked Malaysian’s interest in small hatchbacks.

Ever since its establishment, Perodua worked together with Japanese automaker
Daihatsu, which once owned a 20 percent share in the business. From the engines to the
transmissions, Daihatsu supplied the primary parts and ideas for Perodua's automobiles. Thus,
every Perodua vehicle was equipped with Daihatsu technology. Even though all of Perodua's
vehicles are developed from Daihatsu models, the company has recently added more of its
own design elements to its roster. A significant accomplishment for the company was the
third-generation Perodua Myvi, which was introduced in 2017. It was fully designed and
manufactured in Malaysia.

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 Perodua Mission and Vision
 Professionalism in all our operations
 Efficiency in utilizing technologies and available resources
 Resilience in meeting our challenges Optimizing benefits to customers and
stakeholders Dedication towards social responsibility to community, the
environment and development of competent workforce
 Uniqueness in our products

Perodua Group is made up of five (5) subsidiaries, for instance:

1. Perodua Auto Corporation Sdn. Bhd. [PCSB] (400745K)

Founded in the fourth quarter of 2001. PCSB's other joint venture partners, in addition
to Perodua, are Daihatsu Motor Co. Ltd. and Mitsui & Co. Ltd. from Japan. PCSB is
in charge of managing the Perodua Group's manufacturing operations. The facility
now has a capacity of 350,000 units per year.
2. Perodua Sales Sdn. Bhd. [PSSB] (066332U)
In charge of all Perodua car sales, marketing, and distribution, as well as after-sales
and spare parts activities. PSSB currently has 182 sales branches and 183 service
branches on a national basis to better serve its consumers. Perodua automobiles are
also sold in nations throughout the world, including the United Kingdom, Indonesia,
Singapore, Brunei, Fiji, Nepal, Mauritius, and Sri Lanka.
3. Perodua manufacture Sdn. Bhd. [PMSB] (095999T)
The subsidiary in charge of Perodua automobile manufacture.
4. Perodua Engine Manufacturing Sdn. Bhd. [PEMSB] (400706M)
Assembles automobile engines as well as manufactures selected engine component
parts.
5. Perodua Global Manufacturing Sdn. Bhd. [PGMSB] (400709X) –
Malaysia's first high-tech innovative manufacturing plant for Energy Efficient
Vehicles (EEV). It boasts the country's highest automotive velocity of 75%. It can also
generate 100,000 vehicles per year in a single shift.

Perodua offers a variety of car models to meet a variety of budgets and needs just like their
slogan ‘Building Cars, People First’. The Perodua Axia, Perodua Bezza, Perodua Myvi,
and Perodua Aruz are among the most popular models.

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THE IMPACTS OF MARKETING ENVIRONMENT TOWARDS
THE PERODUA’S MARKETING STRATEGY

External factors that can impact a company marketing initiatives and overall business
performance are referred as the marketing environment. The two primary types of these
elements are macro-environmental factors and micro-environmental ones. Let's investigate
the potential effects of the marketing environment on Perodua's marketing plan.

There are several macro-environment factors that may impact the Perodua marketing
strategies such as economic factors, technological factors, social and cultural factors, political
and legal factors and environmental factors. Economic conditions can influence consumer
purchasing power. In times of economic growth, people may be more willing to invest in a
car. Conversely, during economic downturns, consumers might delay or avoid purchasing
new vehicles. For example, during pandemic covid-19 there are many customers ordered
delayed and some of them canceled the ordered.

On top of that, the other macro-environment factors are technological. Advancements

in technology can affect the design, features, and production processes of cars. Perodua's
marketing strategy may need to adapt to incorporate new technologies or emphasize the
brand's commitment to innovation. Changing societal trends and cultural preferences can
influence consumer perceptions of cars. This can be classified as social and cultural factors.
For example, if there is a growing emphasis on eco-friendly vehicles, Perodua may need to
adjust its marketing to highlight fuel efficiency and environmental sustainability.

Next, political and legal factors also affect the Perodua market. The changes in
government policies or regulations related to the automotive industry can have a significant
impact. This might include emission standards, safety regulations, or incentives for eco-
friendly vehicles. Perodua's marketing strategy may need to align with these regulations.
Increasing awareness of environmental issues may lead consumers to prefer fuel-efficient or
electric vehicles. Perodua's marketing strategy might need to address these concerns and
highlight the environmental friendliness of their products. This situation probably occurs
because of the environment itself.

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 Nevertheless, there also micro – environment that can impact the Perodua’s
marketing. Intense competition in the automotive industry may require Perodua to
differentiate its products and highlight unique selling propositions in its marketing. For
example, in the beginning of their business Perodua only produce hatchbacks, minis and
superminis car but now as years has passed by Perodua also start to produce various type of
vehicle to diversify their product. Understanding competitors' strategies is crucial for staying
competitive. Suppliers also one of the micro-environment factors to the Perodua. Dependence
on specific suppliers for components can impact production and, consequently, marketing.
Any disruptions in the supply chain could affect Perodua's ability to meet market demands.

Perodua must understand their customer preferences and needs is essential for
effective marketing. Changes in consumer behavior, demographics, or preferences may
necessitate adjustments to Perodua's marketing messages and product offerings. For examples
Perodua offers various size, types and colours of car as consumers may choose the car based
on size or colour preferences. Distribution channels and intermediaries, such as dealerships,
play a role in the overall customer experience. Collaborative marketing efforts with
intermediaries can enhance the effectiveness of Perodua's marketing strategy.

In summary, the marketing environment has a profound impact on Perodua's

marketing strategy. Adapting to changes in economic conditions, technology, societal trends,
regulations, and competitive dynamics is crucial for staying relevant and successful in the
automotive market. Regular monitoring and strategic adjustments based on the evolving
marketing environment are essential for long-term success.

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OPINION/REASON COMPANY NEEDS TO RESPONSE ON THE
MARKETING CHANGES:

In the dynamic automotive landscape, it is imperative for Perodua to professionally

respond to shifts in the marketing environment for several compelling reasons. First and
foremost, recognizing and adapting changes in consumer preferences for maintaining market
relevance. By conducting market research and swiftly adjusting strategies, Perodua can
position itself as a brand that stays attuned to the evolving needs and desires of its customer
base.

Moreover, the rapid evolution of technology in the automotive sector necessitates a

proactive approach. Integrating cutting-edge technologies, such as electric vehicles and
connectivity solutions, into Perodua product portfolio is essential to ensure competitiveness
and meet the expectations of tech-savvy consumers.

In the highly competitive automotive market, strategic responses to competitor

activities are crucial. Regular monitoring and swift adaptation to industry innovations and
competitor strategies enable Perodua to maintain or enhance its market position. This
includes implementing differentiation strategies that set the brand apart in the crowded
automotive Landscape.

Economic conditions play a pivotal role in shaping consumer behavior, making it

essential for Perodua to closely track economic trends. Informed decision-making regarding
pricing, financing options, and overall marketing strategies is crucial to align with the
prevailing economic landscape.

Recent global events have underscored the importance of preparedness for unforeseen
challenges. Implementing proactive measures to adapt marketing strategies in response to
external disruptions ensures operational resilience and continuity for Perodua.

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