Course Description: BUMKT 5901: Marketing

1.0 INTRODUCTION This report will be discussing about erodua M!"i in Mala!sia and #$phasis will be on two $arket seg$ents o% erodua M!"i& and e"aluation o% the $arketing $i' (product& price& place& pro$otion)& which will anal!*e what strategies erodua is going to use to $atch the two targeted seg$ents+ ,nd thus& a -./T anal!sis o% erodua ,l*a will be discussed and reco$$endation will be pro"ided %or the weaknesses it has+ The %irst targeted $arket seg$ent in Mala!sia which is Business to Consu$ers+ 2.0 OVERVIEW OF PERODUA BERHAD erodua -dn Bhd established in 1990& erodua began its 1ourne! as the second national car co$pan! to ser"e the nation2s need %or an a%%ordable and industr! leading 3ualit! co$pact car+ 4ro$ the e"er popular erodua Kancil introduced to the Mala!sian $arket in ,ugust 1995& erodua has de"eloped into a strong and d!na$ic group with a co$prehensi"e range o% "ehicles renowned %or its 3ualit! and unsurpassed reliabilit!+ Besides $anu%acturing cars& erodua also produce engine co$ponent parts %or both local and international car$akers& which helps build the auto$oti"e industr! in Mala!sia+ /ur "endor de"elop$ent progra$ helps o"er 100 local parts suppliers i$pro"e co$ponent 3ualit!& cost and deli"er!+ To date& erodua has 51 branches and 109 sales dealers nationwide to ser"e its custo$ers

e%%icientl!+ 6t also has 57 ser"ice branches and 185 ser"ice dealers2 outlets throughout Mala!sia %or custo$er2s con"enience+ erodua "ehicles are also sold in other countries such as United Kingdo$& -ingapore& Brunei& 4i1i& 9epal and -ri :anka+ -a"e %or the sales and ser"ice operations& which e'ist in all states nationwide& #;/DU, operates %ro$ its head3uarters in -ungai Choh& ;awang& and -elangor+ <owe"er& erodua stri"e to place people %irst in e"er!thing it does+ erodua2s brand state$ent building Cars& eople %irst stresses the i$portance o% tailoring the product and ser"ices to indi"idual li%est!les+ 6t also highlights the role the co$pan! pla!s in e$powering the e$plo!ees and partners through industr! leading training and skill trans%ers+ /ur successes are due in great part to the %antastic tea$ at erodua& who are passionate about the Co$pan! and the work the! do+ ,%ter 1= !ears and o"er 1+5 $illion cars sold& erodua has o"er

-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

10&000 people who build cars to $o"e Mala!sia+ ,nd !ou can be a part o% our tea$ helping build cars that inspire a passion to dri"e ( erodua& 8010)+ Table 1: erodua Corporate 6n%or$ation Vision statement To be the $ost pre%erred auto$oti"e brand renowned %or products and ser"ices o% e'cellent 3ualit! which contributes to the de"elop$ent o% the nation ro%essionalis$ in all our operations #%%icienc! in utili*ing technologies and a"ailable resources ;esilience in $eeting our challenges /pti$i*ation o% custo$er satis%action and bene%it to stakeholders Dedication towards social responsibilit! to the co$$unit!& the en"iron$ent and de"elop$ent o% co$petent work%orce Uni3ueness in our products ,spiration to glori%! the na$e o% erodua To introduce an econo$ical and %uel sa"ers cars To $a'i$i*e the sa%et! aspect o% erodua To ha"e a knowledge o% technological and industrial abilit! within auto$obile industries+ To de"eloped auto$obile industries preparation and $anu%acturing industries+ To strengthen the $anu%acturer co$petiti"e o% erodua industr!+ ,i$s at pro%itabilit! and 3ualit! ser"ice deli"ered+ Keeping production on track& help to i$pro"e the producti"it! o% the $anu%acturing operation+ To de"elop work %orce& e'a$ple recruiting hiring and training+ <a"ing co$petent and 3uali%ied e$plo!ees with basic auto$obile skills and knowledge+ Conducting special !outh hiring progra$ securit! and trained in house+ The purpose o% a business is to create a custo$er ?enerate return on in"est$ent to shareholders Building and $aintaining an e'clusi"e relationship with our suppliers on a dail! basis ;ecruit and train sta%%& %riendl! and dedicated to ser"e custo$ers
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Mission statement

Ob e!ti"es

#oa$s

P%&'ose o( b%siness )e* s%!!ess (a!to&s

-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

Course Description: BUMKT 5901: Marketing

in $ind Chart 1: erodua -hareholders

,ppro'i$atel! erodua has a work%orce o% o"er 10& 000 people nationwide+ These e$plo!ees can $ake a production capacit! to produce 050& 000 units in a !ear& on a two shi%t c!cle+ The
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

co$pan! has 1@0 sales and 1=0 ser"ices "endors across the all o"er nation+ erodua e'ports its product to = o"erseas destination including United Kingdo$& 9epal& -ingapore& Mauritius a$ong others ( erodua& 8010)+

+.0 MAR)ETIN# MI, The ter$ AMarketing $i'B has beco$e populari*ed a%ter 9eil <+ Borden publishes his article in 1975 called AThe concept o% the Marketing Mi'B+ Borden starts using the ter$ in his teaching in the late 19502s a%ter Ca$es Cullution had described the $arketing $anager as a AMi'er o% 6ngredientsB+ The ingredients in Borden2s $arketing $i' included $arketing planning& pricing& branding& distribution channels& personal selling& ad"ertising& pro$otions& packaging& displa!& ser"icing& ph!sical handling and %act %inding and anal!sis+ #+ Cero$e McCarth! later grouped these ingredients into %our categories that toda! are known as the 5 2s o% $arketing shown below: 4igure 1: The $arketing $i' (5 2s o% $arketing) roduct rice

Ta&-et Ma&.et

lace

ro$otion

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Course Description: BUMKT 5901: Marketing

The 5 2s are the para$eters that the $arketing $anager can control& sub1ect to the internal and e'ternal constraints o% the $arketing en"iron$ent+ The goal is to $ake decision that centres the 5 2s on the custo$ers in the target $arket in order to create percei"ed "alue and generate a positi"e response+

+.1 PRODUCT/0ERVICE The i$portance o% productDser"ice is a "er! "ital ele$ent in $arketing $i' because without the product or ser"ice& then pro$otion& price and place beco$es obsolete+ ,ccording to Kotler E ,r$strong (8010) states that roductDser"ice $eans the goods and ser"ice co$bination the co$pan! pro"ide to the target $arket+ erodua M!"i produced b! erodua designed at !oung %a$ilies+ The na$e is deri"ed %ro$ the -panish "erb Aal*arB& which $eans Fto riseF+ The na$e ca$e %ro$ an internal co$petition held a$ongst eroduaGs sta%% during the carGs de"elop$ent phase+ <owe"er& $ost Mala!sians "iew the ,l*a as a FM!"i on steroidsF+ -ince its selling price is al$ost alike to the roton #'oraGs& contrasts between the two cars ha"e been drawn in the ,l*aGs low estee$+ 6t has been noted that the ,l*a lacks the ad"anced %eatures o% the #'ora& such as the Bod! Control Module (BCM) which allows auto$atic acti"ation o% certain car %unctions+ ,l*a is the best selling M H in Mala!sia %or 8010 b! total sales o% nearl! 58&000 units& beating roton #'ora b! a $argin o% 15&000 units+ The a"erage nu$ber o% ,l*a sales per $onth is around 8&@00 units as Mala!sian $ostl! belie"es on erodua reputation on this badge co$pact M H co$pared to ho$e grown rotonGs own (http:DDwww+perodua+co$+$!& 8018)+ eroduaGs #'ora

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Course Description: BUMKT 5901: Marketing

4urther$ore& erodua ,l*a is in its growth stage in the roduct li%e c!cle+ erodua has a wide range o% product in Mala!sia o% which are %our seg$ents passenger& %our wheel dri"es+ erodua ,l*a %alls in the %our seg$ents with the lowest possible e$ission+ ,l*a been a h!brid car& which $ake use o% %ossil %uel& is known to gi"e a whooping $ileage o% 100kilo$eters in 5+5 litters o% %uel+ -haw E /nk"isit (800@) states that custo$er ser"ices are serious in $ature $arkets in which it is di%%icult to attract new custo$ers+ ?reen (800@) also suggested that the links %ro$ ser"ice 3ualit! to custo$er satis%action to custo$er retention to pro%itabilit!+

4igure 8: 6nterior and e'terior $easure$ents o% erodua ,l*a car $odel

Table 8: :ist o% erodua Car Models NO. Ca& Mo1e$ 2ea&

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Course Description: BUMKT 5901: Marketing

1+ 8+ 0+ 5+ 5+ 7+ =+ @+ 9+

erodua Kancil ( erodua 9ippa) erodua ;usa erodua Ke$bara erodua Kenari erodua Kelisa erodua M!Hi erodua Hi"a erodua 9autica erodua ,l*a

1995 I 8009 1997 I 199@ 199@ I 800@ 8000 I 800@ 8001 I 800= 8005 I present 800= I present 800@ I 8010 8009 I present

Table 0: -peci%ications o% erodua ,l*a 3MT En-ine En-ine T*'e Va$"e me!5anism Tota$ 1is'$a!ement Bo&e/0t&o.e Com'&ession &atio Ma6. 'o7e& o%t'%t Ma6. to&8%e F%e$ s*stem F%e$ tan. !a'a!it*
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4AT 0-J>H#

D/<C& 17H(5 "al"es per c!linder) with DHHT 1595cc =8+0 $$ K 91+@ $$ (8+@0 in K 0+71 in) 10 =7 k. (105 -) L7000rp$ 1079$ (10+9 kg+$) L5500rp$ #46 58 liters
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Course Description: BUMKT 5901: Marketing

Dimensions 9 Wei-5t O"e&a$$ $en-t5/ 7i1t5/ 5ei-5t :mm; Inte&io& $en-t5/ 7i1t5/ 5ei-5t :mm; W5ee$base :mm; )e&b 7ei-5t :.-; 0eatin- !a'a!it* 1180D1100 5M8 5805 ' 1795 ' 1780 8550 ' 1515 ' 1010 8=50 1150D1150

Source: Perodua Alza official website 4igure 0: <ow each o% the 5 2s can add "alue to a product rice Creating "alue roduct -er"ice Brand rice 6ncenti"es Source: adapted from Armstrong and Kotler (2008). +.2 PROMOTION Custo$ers ha"e to be $ade aware o% the product+ The two $ain considerations are target $arket and cost+ , new business will not be able to a%%ord to ad"ertise on national tele"ision& %or instance and would not wish to because its $arket will be local to start with+ :ea%lets& billboards& ad"ertise$ents in local newspapers& Nellow ages and Oword o% $outh2 would be $ore appropriate+ Kohli E Caworski (1990) states that pro$otion includes all o% the acti"ities $arketers undertake to in%or$ consu$ers about their products and to encourage potential custo$ers to purchase these products+ The product is still in the introduction stage in the product li%e c!cle+ There are two %actors that deter$ine custo$ers purchase power which are: +.1.1 P%b$i! Re$ation: erodua pro$otes its brand (,l*a) b! public $edia such as popular Mala!sian $aga*ines& newspapers and press release to $arket its brand+ The co$pan!
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

ro$otion Co$$unicating "alue

lace Creating "alue

Comm%ni!ation

Dist&ib%tion

ar!eting: An introduction ("t# ed)

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Course Description: BUMKT 5901: Marketing

uses public relation in this stage o% production because it is at low cost as a result it educates bu!ers with the necessar! in%or$ation about its product ( erodua ,l*a)+ +.1.2. Pe&sona$ 0e$$in-: The co$pan! $ake uses o% A .ord o% MouthB b! trained dealers in Mala!sia who ha"e well knowledge on how the car operates also at this stage $onetar! incenti"es to bu! is the $ost e%%ecti"e wa! adopted b! the co$pan! to trigger the purchase o% erodua ,l*a+ +.+ PRICE rice is the a$ount the consu$er $ust e'change to recei"e the o%%ering+ The price $ust be high enough to co"er costs and $ake a pro%it but low enough to attract custo$ers (Kohli E Caworski& 1990)+ The higher the price paid& the higher is the opportunit! costs+ The opportunit! costs stand %or the sacri%ice that the custo$ers put in to en1o! the productsDser"ices+ Due o% the intangible nature o% the ser"ice& price beco$es essential 3ualit! indicator in situations where other in%or$ation is not obtainable (Duerr E ,lbua$& 800@)+ erodua adopts a price ski$$ing s!ste$ to reco"er cost o% de"elop$ent in producing the product& as it is the one o% the auto$obile Co$pan! in Mala!sia with the highest sales o% <!brid cars+ 9on><!brid cars are not $uch costl! co$pared to h!brid cars+

Table 5: rice Co$parison Name o( !a& mo1e$ P&oton E6o&a Pe&o1%a A$<a P&i!e (o& a !a& ;M=9&500+00 ;M75&000 Co%nt&* sit%ate1 Mala!sia Mala!sia

+.4 P=ACE lace includes co$pan! acti"ities that $ake the product a"ailable to target consu$ers and the business $ust ha"e a location that it can a%%ord& and that is con"enient and suitable %or custo$ers and an! supplier (Kotler E ,r$strong& 8010)+ erodua is known %or its ACust>6n>Ti$eB production s!ste$& which create "alue to its product+ 4or product industr! like erodua& place will constitute a lot in ter$s o% in%rastructure& a"ailabilit! and also distributi"e channel+ roduction o% ,l*a is carried out when there is a de$and b! its custo$ers (%leet bu!ers)+ The
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

co$pan! has a good network with its suppliers& as there is a direct contact between the $anu%acturers o% co$ponent partP presentl! the co$pan! has a distribution network o% 185 dealers in Mala!sia+ 4igure 5: -T in erodua helping to create "alue 0E#MENTATION> conser"ati"e custo$ers& price sensiti"e bu!ers& low inco$e earners& point to point custo$er+ Ma1or custo$er is $o7 in!ome ea&ne& lace rice TAR#ETIN#> $a1orl! %ocusing on low inco$e earner and price sensiti"e custo$ers as the! %or$ the biggest percentage o% their re"enue ro$otion roduct

PO0ITIONIN#> through low pricing& a"ailabilit! o% ser"ices& constant pro$otions and going new destinations

C%stome&s 4.0 EVA=UATIN# THE MAR)ETIN# MI, The 5p2s $arketing $i' would be used to deter$ine the $arket o% erodua ,l*a in Mala!sia and also %ind out what $arketing strateg! erodua would adopt to create "alue to its new product A,l*aB+ The e"aluation would be carried out to in"estigate how the product ( erodua ,l*a) create "alue to custo$ers& and which price strateg! gi"e s "alue to the product based on de$ographic location& aesthetics& product strategies& price strateg!& place strateg! and pro$otion strategies+ 4.1 Demo-&a'5i!> 6t is o% great essence to e'a$ine de$ographical en"iron$ent o% the $arket because custo$er purchasing power deter$ines the growth o% To erodua in Mala!sia+ Most erodua ,l*a owners are %ro$ wealth class& the! are educated and well in%or$ed about the product and are %ro$ a socio>econo$ic seg$ent such as pro%essional e'ecuti"e like

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Course Description: BUMKT 5901: Marketing

ad$inistrati"e heads& higher $anagerial and pro%essional occupation who are %leet bu!ers and are read! to purchase %riendl! cars+ 4.2 Aest5eti!s: ,t a glance& %ro$ %ront and back& the ,l*aGs %a$il! rese$blance with the M!"i is ob"ious+ .hen "iewed %ro$ $ost angles& the ,l*a looks like %atter sibling o% the M!"i though closer inspection re"eals bolder st!ling cues+ 6 heard a %ew re$arks o% it looking like a M!"i on steroids+ 4.+ P&o1%!t st&ate-*> erodua ,l*a is known %or its nice interior %inishing with %itted seats %or co$%ort+ The %eature o% ,l*a has o"er its co$petitors is technolog! perksP ,l*a gi"es the i$pression o% a car %ro$ the %uture in se"eral respects+ The dri"er doesnGt change gears with a stick but does it on a co$puter $onitor& se"eral panels displa! the %uel usage& and there is a ca$era built in to help the dri"er with backing up during parallel parking+ 6% !ou ha"e been dri"ing other h!brid cars& stepping into ,l*a car %eel like a $a1or technological upgrade+ ,nother %eature is lower $aintenance costsP ,l*a has %ewer parts than a standard car& which can lead to reduce $aintenance costs+ , erodua ,l*a has regenerati"e brake pads that should ne"er need replacing+ ;eplacing the electric engine also costs less than roton #'ora and+ Co$bine this with the carGs %uel e%%icienc! and the owner could sa"e a lot o% $one! b! the end o% the !ear+ The last %eature it has o"er its co$petitors is ;ecognitionP ,l*a is instantl! recogni*able+ The ,l*as2 distincti"e design is thought to add to the car2s appeal because it ensures the ,l*a will ne"er be $istaken %or a con"entional auto$obile+ This adds "alue to custo$ers b! gi"ing the$ a sense o% prestige as well as %eel like the! are recogni*ed e"er!where the! go+ 4.+.1 Va$%e 1e$i"e&* :P&o1%!t; in Pe&o1%a> Consu$ers o%ten think that a product is si$pl! the ph!sical ite$ that he or she bu!s+ 6n order to acti"el! e'plore the nature o% a product %urther& let2s consider it as three di%%erent productsP the CORE product& the ACTUA= product& and %inall! the AU#MENTED product+ orter (19@0) suggested that $ost industries contain strategic groups o% close co$petitors groups o% %ir$s within an industr! that %ollow the sa$e strategies or ones that ha"e "er! si$ilar di$ensions+ 4igure 5: Three le"els o% $arketing

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Course Description: BUMKT 5901: Marketing

Source:

ar!eting teac#er$ 20%&

4.+.1.1 A%-mente1> erodua o%%ers a test dri"e that custo$ers can book online& at a dealership or through the telephone+ The test dri"e is a personal ser"ice where one o% the sales sta%% will acco$pan! the potential bu!er on a test dri"e o% the "ehicle and e'plain how all the %unctions o% the "ehicle works and how the! will bene%it %ro$ the$+ erodua also o%%ers a lounge area %or custo$ers to sit in and watch pro$otional "ideos while the! wait %or an! t!pe o% ser"ice+ 4.+.1.2 A!t%a$: The ,l*a is an en"iron$entall! %riendl! cost e%%icient "ehicle that gi"es the consu$er the prestige o% knowing the car has a $ini$al i$pact on the en"iron$ent whilst still %itting into an i$age with conscience societ! with the #uropean st!ling in the car design+ There are a nu$ber o% "ehicles that ai$ to achie"e the sa$e t!pe o% i$aging %or e'a$ple roton #'ora+ 4.+.1.+ Co&e: The core product is this instance in transport+ .hen consu$ers purchase ,l*a cars& the $ost basic bene%it the! are seeking is a $ethod o% transportationP $ore speci%icall! this

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Course Description: BUMKT 5901: Marketing

product is passenger transport+ 6n this respect& ,l*a is dee$ed to ha"e co$petitors as all $odels o% passenger transportation pro"ide this bene%it+ <owe"er& Kotler noted that $uch co$petition takes place at the ,ug$ented roduct le"el rather than at the Core Bene%it le"el or& as :e"itt put it: A 'ew competition is not between w#at companies produce in t#eir factories$ but between w#at t#e( add to t#eir factor( output in t#e form of pac!aging$ ser)ices$ ad)ertising$ customer ad)ice$ financing$ deli)er( arrangements$ ware#ousing$ and ot#er t#ings t#at people )alue*+ Table 5: -trengths and .eaknesses o% erodua ,l*a 0t&en-t5s The Wea.nesses are <igh cost associated with ;esearch and de"elop$ent <igh cost co$pare to non>h!brid cars Custo$ers choices are li$ited <igh cost o% $aintenance because o% ad"anced technolog! applications+

prices

o%

erodua

cars

relati"el! a%%ordable to the @0Q o% the people+ ,l*a cuts car e$ission b! 85Q to 00Q+ ,l*a has a greater econo$ic bene%it with less %uel consu$ption co$pare to other cars (100k$ with 5+5 liters o% %uel+

,d"anced technolog! Table 7: roduct di%%erentiation and 4ocus o% erodua ,l*a

P&o1%!t Di((e&entiation Fo!%s Custo$er purchasing power o% ,l*a cars is Most h!brid cars are target to %it the $arket o% "er! low in Mala!sia $arket& there are %ew a particular seg$ent+ Most o% ,l*as cars are bu!ers co$pare to non>h!brid bu!ers as a designed to %it %leet bu!ers such high result custo$er bargaining power is low as the e'ecuti"e& erodua en1o!s brand lo!alt! as the product is not easil! sold co$pan! is onl! targeting one seg$ent& which is "er! di%%icult %or co$petitors to co$pete+ ,l*a is a speciali*ed product as such it is di%%icult to penetrate+

-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

4.4 P&i!e st&ate-*> The ,l*a is currentl! sold in a pure co$petition $arket& Oa $arket in $an! bu!ers and sellers trade in a uni%or$ co$$odit!2 (Kotler et al+ 1995)+ 6n other words& there are $an! passenger "ehicles sold b! a wide range o% co$panies all co$peting in the sa$e industr!+ ,s erodua release the h!brid "ehicle and it currentl! outclasses its direct co$petitors although proton2s h!brid "ehicle o%%ers consu$ers a lower price ( roton& 8010)+ ,s the h!brid technolog! beco$es $ore widel! accepted b! consu$ers and $ore car $anu%acturers release their own h!brid "ehicles& the $arket will beco$e $ore co$petiti"e and erodua will ha"e to beco$e $ore sensiti"e to the pricing o% co$petitor2s "ehicles+ ,s with $ost pricing strategies the erodua prices are Halue>Based& as does their co$petitor& roton+ The price erodua has set is Obased on bu!ers2 perceptions o% the "alue rather than on their costs (Kotler et al+ 1995)+ The costs o% producing the ,l*a are secondar! to the consu$er2s perception o% the "ehicle2s "alueP o% course the costs ha"e still been taken into account so the pro%it goal is achie"ed b! erodua in Mala!sia+ The Halued>Based pricing strateg! is both appropriate and e%%ecti"e %or ,l*a cars+ erodua has $arketed the ,l*a at a reasonable price& co$parable to other "ehicles sold to a si$ilar target audience+ The ,l*as2 pricing has an ad"antage o"er co$parable "ehicles due to its en"iron$ental bene%its and %uel cost sa"ings+ The ,l*as2 price le"el is in e%%ect a pricing strateg! as consu$ers o%ten associate a higher price with higher 3ualit!+ The price di%%erence between the ,l*a and its co$petitor the roton h!brid will ensure that the ,l*a sits as the pre$iu$ product in the h!brid "ehicle $arket+ The positioning is also help in large brand awareness o% erodua in the Mala!sia $arket place& as opposed to roton& which has now labelled itsel% as a lower 3ualit! brand in h!brid "ehicles+ 4.4.1 Va$%e 1e$i"e&* :P&i!e; in Pe&o1%a> The "alue o% price is hea"il! and positi"el! %elt in all aspect+ <ow the "alue is been added actuall! in"ol"es the consu$er ps!cholog!+ Man! people attach certain "alues to high priced products& including lu'ur!& e'clusi"it!& and 3ualit!+ B! releasing a product with a high price& the $anu%acturer ( erodua& ,l*a) sends a $essage to prestige>conscious consu$ers& ensuring that the! will %lock to bu! their product+ #"en as the price drops& people will continue to associate these "alues with the product& creating a stead! de$and %or it+ -o this $eans erodua add "alue to custo$ers b! boosting their prestige and gi"ing the$ a co$pact car that %its their reputation+
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

.hile in return the co$pan! erodua gains "alue b! ha"ing high pro%its& creating o% a sense o% e'clusi"it!& and controlling o% the $arket+ 4.3 P$a!ement st&ate-*> ,lthough %igures "ar! widel! %ro$ product to product& roughl! a %i%th o% the cost o% a product goes on getting it to the custo$er+ lace is concerned with "arious $ethods o% transporting and storing goods& and then $aking the$ a"ailable %or the custo$er+ ?etting the right product to the right place at the right ti$e in"ol"es the distribution s!ste$+ The choice o% distribution $ethod will depend on a "ariet! o% circu$stances+ 6t will be $ore con"enient %or so$e $anu%acturers to sell to wholesalers who then sell to retailers (Kotler& 8010)+ erodua is utili*ing the Opush >pull de$and2 strateg! with "ehicles being de$anded then 6$ported rather than ha"ing surplus stocks)+ Though erodua are lessening costs b! i$ple$enting a "ertical distribution network& the lack o% $anu%acturing %acilities and length o% shipping ha"e $eant that custo$ers ha"e to wait an!where %ro$ %i"e to twel"e $onths to ha"e their ,l*a order %ul%illed (,nderson E 9arus& 1999)+ erodua is not %ul%illing the distribution re3uire$ents e%%icientl! because de$and is outstripping suppl!+ erodua in Mala!sia is taking orders %or up to 180 ,l*as e"er! $onth but onl! recei"ing 50 o% the$ to distribute (Brunner& 19@9)+ erodua should consider establishing another $anu%acturing plant in the near %uture erodua could use an e'tra plant to $anu%acture new h!brid otherwise the! risk losing their $arket share o% h!brid "ehicles+ <owe"er& with the attracti"eness o% the new h!brid technolog! "ehicles with di%%erent bod! designs such as& con"ertibles& %a$il! sedans& station wagons& s$all cars and %urther e'pand their current $arket share+ 4.3.1 Va$%e 1e$i"e&* :P$a!e; in Pe&o1%a> Halue is been added to custo$ers through the a"ailabilit! and accessibilit! o% erodua ,l*a& take %or e'a$ple& there are so $an! car dealers that $arkets erodua ,l*a& which were b! $akes it eas! %or custo$ers to order or purchase ,l*a product+ <owe"er e"en with the $an! distributing channels owned b! erodua& so$e custo$ers still co$plain o% late deli"er!& so it has been suggested to erodua that the! should establishing another $anu%acturing plant in the near %uture so as to retain and attract custo$ers+ This will also help in continuous building and retaining the reputation and i$age o% erodua+

-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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4.? P&omotion st&ate-*> Custo$ers ha"e to be $ade aware o% the product+ The two $ain considerations are target $arket and cost+ , new business will not be able to a%%ord to ad"ertise on national tele"ision& %or instance and would not wish to because its $arket will be local to start with+ :ea%lets& billboards& ad"ertise$ents in local newspapers& Nellow ages and Oword o% $outh2 would be $ore appropriate+ Kohli E Caworski (1990) states that pro$otion includes all o% the acti"ities $arketers undertake to in%or$ consu$ers about their products and to encourage potential custo$ers to purchase these products+ <owe"er& erodua has used a nu$ber o% %or$s o% $edia to pro$ote the ,l*a: 9ewspapers

announce$entsP the %irst stage o% pro$otion %or the current $odel ,l*a was a series o% newspaper announce$ents+ These were placed in newspapers the target audience read& these ad"erts were ai$ed at raising consu$er awareness o% the product (Brunner& 19@9)+ There was a series o% staged tele"ision ad"ertise$ents broadcast in Mala!sia+ The %irst ad"ert was ai$ed enlightening consu$ers about the en"iron$ental aspects o% the ,l*a& the second was drawing their attention to the cost sa"ings on %uel and& the third ad"ertise$ent was geared at positioning the erodua branding with the ,l*a (,nderson E 9arus& 1999)+ The current tele"ision consu$ers and "alue conscientious consu$ers+ 6nteracti"e $aga*ine ad"erts still %ocus on branding and positioning+ The $ain push is towards en"iron$entall! conscientious ad"ertise$entsP , nu$ber o% interacti"e ad"erts were placed in $otoring and li%est!le $aga*ines+ These were %old out page ad"erts and so$e contained s$all %uel sa$ples too+ These ad"erts were ai$ed at in%or$ing the reader o% the en"iron$ental bene%its and econo$ic "alue recei"ed in owning ,l*a (,nderson E 9arus& 1999)+ 6nternet banner ad"ertise$ents (leading custo$er to website) 6nternet banner ad"erts directing custo$er the ,l*a website were launched across a nu$ber o% websites and search engines in the initial stages o% pro$otion+ The website pro"ides: "ehicle speci%ications and i$agesP detailed pricingP articles and re"iewsP %inancing arrange$entsP subscriptions to a newsletterP brochuresP dealer locationsP and an online test dri"e booking %or$+ The website is geared at in%or$ing the "iewer o% the en"iron$ental& technological& and econo$ic and prestige ele$ents the ,l*a has to o%%er+ 6n the current econo$ic cli$ate there is a big %ocus on one particular e'ternal %actor throughout de"eloped nations with e"er increasing oil pricesP petrol is beco$ing $ore and $ore e'pensi"e+ This is one o% the areas that the ,l*a has the ad"antage o"er the a"erage passenger "ehicle& able to pro$ote the "ehicle will consu$e 50 per cent less %uel than an a"erage car& enticing consu$ers toward the econo$ic
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

"alue the ,l*a o%%ers (http:DDwww+perodua+co$)+ There needs to be $ore de"elop$ent o% consu$er awareness o% the ,l*a+ erodua has not included the ,l*a in an! sponsored e"ents+ The ,l*a needs to be included in sponsored e"ents so consu$ers can easil! identi%! with the "ehicle and see its %unctions+ -ponsorship $a! also alle"iate the current threat erodua %ace with dela! in distribution o% the ,l*a+ 6% consu$er lo!alt! to the ,l*a is de"eloped the! will not $ind waiting so long to recei"e their "ehicle+ 4.?.1 Va$%e 1e$i"e&* :P&omotion; in Pe&o1%a> The public relation $ethod deli"ered "alue to custo$ers b! in%or$ing the custo$ers e'actl! all the things the! need to know about the car& like the %eatures& passing the right in%or$ation to custo$ers is a sign o% dependabilit! to custo$ers& $eaning that the co$pan! is reliabilit!& that what the! ad"ertise is e'actl! what the! sell& which will $ake custo$ers see erodua as a trust worth! co$pan!+ .hile the personal selling added "alue to custo$ers b! not 1ust getting the in%or$ation %ro$ newspapers and $aga*ines& but gi"ing the custo$ers the opportunit! to test dri"e the car& ha"ing so$eone to tell the$ e'actl! how the car works and correct e"er! doubt in custo$ers $ind+ erodua will deri"e "alue %ro$ this b! ha"ing their product in the $inds o% custo$ers and attracting custo$ers b! creating awareness+ 4.@ Aest5eti!s: ,t a glance& %ro$ %ront and back& the ,l*aGs %a$il! rese$blance with the M!"i is ob"ious+ .hen "iewed %ro$ $ost angles& the ,l*a looks like %atter sibling o% the M!"i though closer inspection re"eals bolder st!ling cues+ 6 heard a %ew re$arks o% it looking like a M!"i on steroids+ Table =: -./T ,nal!sis o% erodua Co$pan! 0t&en-t5s roducing co$pact cars+ Halue %or $one!+ #'cellent reliabilit! and build 3ualit!+ lus the i$pressi"e standard e3uip$ent speci%ication The prices and o% latest erodua generation cars are technolog! apparent in $odels+ Wea.nesses :ow ;esearch E de"elop$ent+ 9ot inno"ati"e+ .eak $anage$ent tea$+ :ow producti"it!+ .aiting %or the new part %or a long ti$e+ :ow 3ualit!+
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Course Description: BUMKT 5901: Marketing

relati"el! a%%ordable to the @0Q o% the people+ 4uel sa"ing+ #as! to dri%t %or beginners+

roduce in Mala!sia+

-uitable %or couple+ O''o&t%nities T5&eats 4inancial $arkets (raise $one! through #cono$ic slowdown+ debt& etc)+

The rise o% Bat$an+ The rise o% the guardian+ The rise o% -pider$an+

6nno"ation+ 9ew technolog! %ro$ .a!ne Co$pan! ,ble to add>on nitrous+ rices o% petroleu$ are increasing& thus& people opt to change to cheaper cars to ease their burden on transportation+

3.0 MAR)ET 0E#MENT0 3.1 Des!&i'tion o( ma&.et se-ment A :Ma$es; Business to Consu$er (B8C) was one o% the tools to be used to $arket the product in Mala!sia+ 6t was one o% the e%%ecti"e $arketing tools as the pattern o% purchasing within the consu$ers was portra!ed as aggressi"e in this digital age (.!nn& 800@)+ <owe"er& there is a concern in using this tool as it uses a shorter period and attract the consu$ers2 response+ 3.1.1 Demo-&a'5i!> the target consu$ers area both $ale and %e$ale& but $ainl! $id>aged $ales (05>50 !ears)+ Both o% the genders are educated and aware as the! are %ro$ ,B socio>

-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

econo$ic seg$ent+ This can be concluded the consu$ers are blue collar workers %ro$ e'ecuti"e to high le"el $anager who ha"e the purchasing beha"iour to purchase low petrol consu$ption+ 3.1.2 Ps*!5o-&a'5i!> The custo$ers were categori*ed as earl! adoptersDtechnolog! pioneers when the car launches+ The de$and o% erodua cars is high as the %eatures co$patible and suitable to consu$ers2 li%est!le %ro$ the si*e& low petrol consu$ption and carbon e$ission+ 4igure 7: Technolog! adoption li%ec!cle

Source: +ec#nolog( adoption lifec(cle$ 20%2 3.1.+ #eo-&a'5i!> erodua cars were seg$ented %or consu$ers li"ing in the cities as it con"enient %or indi"iduals and %a$ilies+ erodua is unable to $arket their cars to rural area such as -abah and -arawak due to rock! road pa"e$ent and di%%erent li%est!le+ 3.2 Des!&i'tion o( ma&.et se-ment B :Fema$es; ,s stated& erodua cars were designed %or both genders as it $ain purpose is to $arket the co$pact cars2+ erodua cars were designed %or consu$ers %or those who 1ust entered into 1ob $arket and low petrol consu$ptions+ Besides that& one o% the %unctions o% erodua cars is carbon e$ission reduction+

-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

3.2.1 Demo-&a'5i!> :adies who purchases erodua cars are those who are %resh graduate or with less than 8 !ears e'perience+ The! pre%erred co$pacts cars as it was con"enient to the$ and $a1orities o% the$ are aged %ro$ 80 I 87 !ears old+ 3.2.2 Ps*!5o$o-i!a$> the li"ing cost in Mala!sia is high and the petrol price increase price in -epte$ber 8010+ This ga"e an opportunit! %or erodua to in"est and $odi%! cars %or suitabilit!+ Cars with an e%%icienc! %uels one o% the ob1ecti"es %or %e$ales to purchase cars+ This was one o% the ke! %or erodua to penetrate into $arket+ 3.2.+ #eo-&a'5i!a$> M!"i was one o% the high de$ands %or consu$er purchase and widel! accepted especiall! in the cit! such as Kuala :u$pur and enang+ <ence& car dealers and retails were opened across eninsular Mala!sia+

3.+ E"a$%ation o( ma&.et se-ment A an1 B Pe&o1%a ,n organi*ation is able to understand and able to create $arketing strateg! once the! ha"e a solid $arket seg$entation+ The $arket seg$entation o% erodua was si$ilar to .!nn2s (800@) theor! which is to trans%or$ the pattern o% consu$ers into bu!ers+ erodua ha"e a solid
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-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

Course Description: BUMKT 5901: Marketing

$arketing strateg! and ha"e a strong branding+

erodua is well>known as the! identi%ies

consu$ers2 needs and pro"ide a custo$er ser"ice satis%action b! $arketing directl! to the consu$ers+ B! portra!ing a strong branding and e'cellent custo$er ser"ice can create word>o%> $outh+ There are $an! criteria and needs to cater to each consu$er as their $ain ob1ecti"es %or status& co$%ort and price sensiti"it! or sa%et! purpose+ erodua has looked care%ull! into e"er! %actor in designing each car to cater e"er!one2s needs+ Besides that& erodua also obser"e the age pattern o% the consu$ers+ Daina (8018) obser"ed the interest o% ?en N into the ad"ance$ent technologies+ This can be concluded as the withdrawal o% bab! boo$ers leads to the growth o% ?en>N and J+ The digital era toda! creates %ir$s to be producti"e in 6T and tech>sa""! which ga"e an opportunit! to erodua to in"est and consider e"er! areas in creating the $odel o% the car+ Thus& the! are able to in"est and create a car %or sa%et! purpose and low petrol consu$ption based on ade3uate in%or$ation and ad"ance$ent o% technologies+ Besides that& the large a$ount o% !oung graduates gi"es an opportunit! to erodua to create a reasonable car which is M!"i+ The! shi%t the %ocus into pricing strateg! and channel distribution as their tools in $arketing strateg!+ 6n addition& the shi%t o% the digital era uses the electronic $arketing tool which is social $edia to create awareness and accessible to all around the world+

?.0 NEW MAR)ET INITIATIVE0 Based on the anal!sis& the trend o% the $arketing tool has change drasticall! and the direction o% the co$pan! has changed %ro$ traditional into digital era+ The growth o% the technolog! and i$pact o% the ser"ice 3ualit! was the %ew %actors to cater all the consu$ers2 needs in the world+ There are %our new $arketing initiati"e was used b! erodua+
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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?.1 T5e (o%& ne7 ma&.etin- initiati"es ?.1.1 T5eme> , the$e was used co$$onl! b! $an! organi*ations and has beco$e one o% the $arketing initiati"es+ 4or instance& an auto$obile co$pan!& ?eiko has success%ull! position in the $arket b! using a talking ?eiko (ani$al) as their co$$ercial+ 6t was a success%ul branding as it creates an i$pression and attract the consu$ers+ erodua uses cost leadership as their the$e %or their $arketing branding+ 6t was a co$petiti"e ad"antage %or erodua to design and $anu%actured a good 3ualit! car with a reasonable price+ ?.1.2 Vi&t%a$ !%stome& se&"i!es> #$phasi*ing world class custo$er ser"ices is one attributes as their $arketing strateg!+ erodua uses 6nternet and social $edia as one the $arketing tool to establish a good relationship with custo$ers+ 6t was one o% the e%%icient wa!s to build relationship with custo$er "ia online and create con"enience to consu$ers without "isiting the car show dealers+ 6n addition& erodua can use social $edia such as 4acebook and 6nstagra$ to pro$ote and create ad"ertise$ents+ ?.1.+ Di"e&se !%$t%&es> erodua was well>known %or their branding across ,sia countries+ 6t was an essential %or erodua e'pand their business out o% Mala!sia+ This allows erodua ha"e an opportunit! to set up their $arketing position and in"est ;ED %or each countr!+ this creates $ultiple choice %or consu$er to choose as well+ ?.1.4 Di"e&se net7o&.in-> erodua has a bigger "ision despite being one o% the $ain car

$anu%acturers+ erodua can create and $odi%! cars with collaboration with other industries+ The other industr! is e$erging such as aerospace& solar and constructions+ erodua can collaborate with solar co$panies to create a s$art car and en"iron$ental %riendl! car+

?.2 Rationa$e (o& s%!!ess erodua has create a strong $arketing strateg! a%ter de"elop a lot o% research and branding in the $arket such as using 5 s+ Besides that& erodua is able to penetrate the $arket although the! ha"e %aces a lot o% threats such as pattern o% consu$er beha"iours and the industr! is $o"ing into
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

digital era+ -ocial $edia is currentl! the trend in as it has "arious %unctions such as gi"ing Ashoutout2& co$petitions and ad"ertise$ents+ This ad"ertising strateg! is able to increase the pro$otion and awareness a$ong the consu$ers+ <ence& it leads to increase re"enue and $arket share+ Besides that& erodua can pro"ide and i$pro"ised the custo$ers ser"ices through telephone and %ace>to>%ace+ , good custo$er ser"ices can creates a good i$pression to the consu$ers+ Thus& this creates a word>o%>$outh %or the co$pan! and creates an opportunit! %or internal sta%% to create indoor sales %or spare parts+ 4igure =: The i$pact o% new initiati"es on eroduaRs 5 s and success i$pacts+

theme Virtual services Diverse workforce Global etworki!"

#ro$uct #romotio ! #lace #rice

%&!crease$ market share a!$ si'e %(ore reve!ue % ew i!!ovatio! a!$ tech!olo"ies %)ffective tar"eti!" of u!ta**e$ market %Global *rese!ce

4igure = shows a diagra$ o% $arketing new initiati"es and the success%ul rate b! using the $arketing tools+ There%ore& reco$$endation needs to adopt to create a success%ul branding which is e"er! co$pan!2s drea$s+

@.0 CONC=U0ION ,s people begin to accept the new technolog!& the price o% %uel continues to increase and en"iron$ental awareness grows the ,l*a is well positioned in the $arket (Mala!sian 4inancial ;e"iew& 8005)+ The Halue>Based pricing strateg! is highl! e%%ecti"e %or the ,l*a and is in line with custo$er "alue>perceptions+ There are a nu$ber o% %uture e'ternal threats to the ,l*a+ The
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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h!brid technolog! is being hea"il! researched and de"eloped b! co$petitors and in the "er! near %uture a nu$ber o% new h!brid "ehicles will be released+ erodua should carr! out research and de"elop$ent into producing a "ariet! o% di%%erent "ehicles using the h!brid technolog!P this would attract a wider target audience+ The current logistics arrange$ent has both positi"e and negati"e i$plications+ /n the one hand cars are $anu%actured when ordered& eli$inating e'cess in"entories but on the other& this has resulted in length! dela!s in getting the product to the custo$er and could cost erodua sales+ There is a lack o% awareness o% the ,l*a on the $arketP this could be relie"ed b! using the ,l*a in sponsoring ke! e"ents and encouraging custo$er lo!alties to the "ehicle as well as the erodua brand+ /"erall the erodua ,l*a is being $arketed e%%ecti"el!P this is re%lected b! the continual increase in sales+ De%ects in the earlier $odels o% the product ha"e been reali*ed and a$ended which has instilled con%idence in custo$ers that their concerns are being listened to and $et+ <owe"er& erodua $ust continue to $onitor their position on the <!brid $arket as $ore co$panies adopt the technolog!+

A.0 RECOMMENDATION P&o1%!t Re!ommen1ation> 4urther research and de"elop$ent into a "ariet! o% "ehicle bod! designs should be carried out to in"estigate the possibilit! o% e'panding on the ,l*as2 current target $arket and to $aintain their current positioning in the h!brid "ehicle $arket+ P&i!e Re!ommen1ations> The pricing strateg! is the $ost e%%ecti"e ele$ent present in the ,l*as2 $arketing $i'+ The price is co$petiti"e with co$parable "ehicles and accuratel! re%lects consu$er perception o% the ,l*as2 worth+ P$a!ement Re!ommen1ation> erodua Mala!sia needs to in"estigate the "iabilit! o% establishing at least one $ore $anu%acturing plant because there is a risk o% losing the large nu$ber o% would be custo$ers who wish to ha"e the ,l*a because it is new technolog! and
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

do not wish to wait %or up to twel"e $onths to recei"e their "ehicle+ There is a danger that other co$petitors could take erodua2s portion o% the h!brid "ehicle $arket with %aster $anu%acturing and distribution networks+ P&omotion Re!ommen1ation> 6n ter$s o% pro$otion erodua should consider entering into erodua2s sponsorship arrange$ents at so$e $a1or e"ents so people engage with the ,l*a b! seeing how the "ehicle %unctions& creating Ocusto$er awareness2 whilst still $aintaining branding and generating lo!alt! to the product+ 6n line with en"iron$ental initiati"es the United Kingdo$ has o%%ered to $e$bers o% the public and businesses& erodua Mala!sia should propose a cash back sche$e to the Mala!sian go"ern$ent& b! the Mala!sian go"ern$ent to custo$ers that purchase h!brid "ehicles+ This cash back sche$e would encourage consu$ers2 to purchase "ehicles that use less %ossil %uel and pro"ide %inancial incenti"e to consu$ers to bu! an ,l*a car+ Ne7 ma&.etin- initiati"es> erodua should consider adopting so$e new trends and initiati"es rather than doing business in sa$e wa! and %ocusing on 1ust production+ The need to partner and pro"ide regular ser"ices is "er! i$portant especiall! in the "irtual $anner+

REFERENCE0 ,nderson& C+C E 9arus C+, (1999)+ ,usiness mar!eting management$ understanding$ creating and deli)ering )alue+ 9ew Cerse!+ rentice <all+ Brunner& ?+C (19@9)+ The $arketing $i': Ti$e %or re>conceptuali*ation+ -ournal of mar!eting education. 9ew Nork: Cohn .ile! E -ons 05 (5)& 0@7>09=+ Duerr & #+ E ,lbua$& ?+ (800@)+ .nternational rentice <all ?reen& M+& (800@)+ 1lobal Kotler& h+ (1995)+ ar!eting+ (5th ed)+ rentice <all+ anagement$ (@th ed)+ 9ew Cerse!: rentice><all 6nc+ ar!eting and /0port anagement+ (7th ed+)

ar!eting

Kohli ,+K E Caworski B+C+ (1990)+ Market /rientation: The Construct& ;esearch ropositions&
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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Course Description: BUMKT 5901: Marketing

and Managerial 6$plications& -ournal of

ar!eting& 55 (5)& 1>1@

:e"itt& Th+ (19@0)+ Marketing -uccess through Di%%erentiation I o% ,n!thing. 2ar)ard ,usiness 3e)iew& 5@ (5)& @0>91+ erodua& (8018)+ A ission and 4alues*+ ;etrie"ed %ro$: http:DDwww+perodua+co$+$!Dinde'+phpSsectionTcorporateEidT11 Dece$ber& 8018V+ erodua& (8018)+ A anufacturing*+ ;etrie"ed %ro$: http:DDwww+perodua+co$+$!Dinde'+phpSsectionTcorporateEidT5 Dece$ber& 8018V+ erodua& (8018)+ A5orporate .nformation*+ ;etrie"ed %ro$:http:DDwww+perodua+co$+$!Dinde'+phpSsectionTcorporateEidT18 U,ccessed Dece$ber& 8018V+ 00 U,ccessed 00 U,ccessed 00

roton& (8018)+ A5orporate .nformation*. ;etrie"ed %ro$: http:DDwww+proton+co$ U,ccessed on 10 Canuar!& 8010V orter& M (19@0). 5ompetiti)e Strateg( 6 +ec#ni7ues for Anal(zing .ndustries and 5ompetitors$ 9ew Nork: The 4ree ress -haw & C+ E /nk"isit& -+& 800@+ .nternational ;outledge+ APPENDI, 1 CHA==EN#E0 FACED B2 PERODUA IN #=OBA= 0OURCIN# #"er! co$pan! %aces challenges i% the! outsourcing in%or$ation %ro$ di%%erent countries+ <ere are the i$portant challenges %aced b! erodua Co$pan! such asP i+ Di((e&ent !%&&en!ies an1 "a$%ations in 1i((e&ent !o%nt&ies : countries currencies are not alwa!s stable and this could be as a result o% their econo$!& and also will a%%ect the %oreign sourcing o% $aterial %or production+ This see$s as one o% the $ost challenges %aced b! erodua in outsourcing $aterial %or its production+ ii+ Di((e&ent ta6 $a7s: #"er! countr! has a ta' rate %or %oreign in"estors and it di%%ers %ro$ each countries+ 4ro$ the perception o% globali*ation& the operation o% erodua and its business %ocus outside the countr! %or outsourcing $aterial& which the! dee$s %it to
-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

ar!eting: Strateg( and +#eor( (5th ed+)+

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Course Description: BUMKT 5901: Marketing

undergo such dile$$a& which could also a%%ect their cost o% purchasing a $aterial as well their decision too+ iii+ Di((e&ent t&a1in- '&oto!o$s: Trading protocol di%%ers %ro$ each countries and so as organisation culture too+ erodua $ight not be co$%ortable with the current protocol o% other organisation towards its own co$pan!& which $ight a%%ect its decision $aking& pro%its and as well as o"erall per%or$ance o% the co$pan!+ i"+ =a!. o( t&ans'a&en!* o( !ost an1 '&o(it : Transparenc! is $ain point in e"er! success%ul business& but $ost co$panies do not i$ple$ent it e%%ecti"el!+ erodua will %ail i% the! do not i$ple$ent an accurate transparenc! in their business transaction& which leads to low pro%it and high cost due to the "alue $anipulation %ro$ each part!+ This %actor is a%%ecting erodua in dealing with %oreign countries+ CORPORATE 0TRUCTURE erodua corporate structure is incorporate with Daihatsu Motor Co$pan! and Mistui& which leads to a collecti"e stake o% 51Q stake in erodua ,uto corporation& and create a 51Q e3uit! in erodua $anu%acturing& and this co$prises $ostl! Mala!sian in"est$ent is 1=1+7 $illion %or the 51Q stake& while Mitsui is poses onl! ;M51+9 $illion %or its 10Q stake+

-u$$er -e$ester& 8018>-ta$%ord College& Mala!sia

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