Table of Contents List of Figures 4 List of Tables: 5 Preface 6 Acknowledgements 7 Executive Summary 8 Abstract 9 PART ONE 10 Launching the Proton Prevé – DRIVE IT TO believe IT 10 1) Prevé – Product (Atrributes) 10 2) Prevé - Price 10 3) Prevé – Place (Distribution) 11 4) Prevé – Promotion 11 COMPANY BACKGROUND 12 PROTON Business Strategy 12 FINANCIAL INSIGHTS OF PROTON 14 Critical Success factor 15 Product 15 Price 15 Promotion 15 Place 15 Critical Success factor 16 Comparison of Prevé with other brands on the critical success factor of Prevé 16 Product 16 Price 18 Promotion 19 Place 19 PART TWO 22 SWOT Analysis 22 Strengths 22 Weaknesses 22 Opportunity 23 Threat 23 TOWS Analysis 24 Strength-Opportunities (SO) 25 Strength-Threat (ST) 25 Weaknesses-Opportunities 25 Weaknesses-Threat 25 PART THREE 27 Strategic Planning and Implementation: Short to Mid Term 27 For first time buyer; Rebate 27 Lower interest rate and zero down payment 27 Indirect Promotion 27 Preve variants :Competitive Price 27 R & D & Special Edition 27 Strategic Planning and Implementation: Long Term Strategy 27 10 years scrap program 28 Proton First than Foreign Car program 28 Proton Car Financing 28 Strategic Partnership 29 Completely Knock Down (CKD) Plant 29 APPENDICES: BROCHURES 30 References 31

List of Figures
Figure 1: Photo from the Launching of Prevé
Figure 2 : PROTON Company Logo
Figure 3 : Critical Success Factors, Missions & Goals for Proton
Figure 4: Annual export of Proton cars 1986-200911
Figure 5: Proton Automobile Sales in Malaysia 2002-201211

List of Tables:
Table 1: Sales and Distribution Functional entities
Table 2: PROTON Prevé Promotion September 20133
Table 3: PROTON Unit sales History (Malaysia)
Table 4: PROTON Statement of Comprehensive Income for the financial year ended 31 Mar 20138
Table 5: Performance Review Prevé within its Rival
Table 6: Prevé Dimension Comparison with its foreign Rival10
Table 7: Prevé Dimension Comparison with its internal Rival10

Preface
This paper is specifically design to describe and analyse the launch of Proton Prevé a four-door compact saloon developed by Malaysian Automobile manufacturer Perusahan Otomobil Nasional (“PROTON”). Proton Prevé was launch on 16 April 2012 and is based on Proton’s next generation P2 platform. The Prevé is the saloon complement to its sister car, the Proton Suprima S hatchback, and is also the successor to the Proton Persona and Proton Gen-2.
Our primary objective is to enable the reader to understand the business orientation of the Proton Prevé through quantitative and qualitative analysis from the marketing perspective. Although this report describe best strategies based on quantitative and qualitative analysis, the experience dscribe in this report derived from limited engagement and therefore cannotbe fully generalized. However the proposal presented therein reflect insights that might be useful in subsequent effort to re-launch Proton Prevé

Acknowledgements
The team members contributed to this report by supporting the work that led to it. Those members are Rosni Bin Mohd Daud, Mashkuri Bin Harun and Bonis Samid.
We would like to acknowledge the support and suggestions from Dr. Geoffrey Tanakinjal. His skill and attention to detail are most appreciated.

Executive Summary
We have conscientiously written this paper to accommodate a variety application of marketing concepts, tools and decision making process. In addition, readers will find this paper useful in providing guidelines for marketing plans and programs.
This paper presents analysis from a decision-making perspective rather than from a descriptive point of view. As a result, the reader will find a comprehensive analytical review on the Proton Prevé. The paper has been organised around the marketing planning process.
In Part One we present the marketing planning process of Proton Prevé, and we examine the corporate marketing planning decisions used by top management of PROTON.
Part Two presents the analytical review using marketing tools confronting the products attributes. Included in this section are sections on market analysis, market measurement, competitive and advantages.
Part Three present systematic planning approaches for selecting the best marketing strategy. Our group recommended a newly improvised Prevé Special Edition (SE) with uplifting features to enhance the physical appearance and performance of existing Prevé emphasizing on performance, pricing and fuel economy.

Abstract
This report analyse the recent launch of Prevé , a new C-Segement passenger car model by PROTON Holdings Berhad in 16 April 2012. It synthesizes marketing theories, application tools and future scenarios upon the product. It brought wide perspective on the product analysis within industry overview. Finally, the report provides insights and proposal regarding the launch of the future models.

PART ONE
Launching the Proton Prevé – DRIVE IT TO believe IT
The Proton Prevé was finally unveiled in Malaysia on 16 April 2012 at Seri Kembangan by the Prime Minister of Malaysia, Najib Razak and witnessed by YABhg Tun Dr Mahathir Mohamad. Proton Prevé is a four door saloon car. Prevé is within the C-segment of passenger car model. C-segment is car size classification defined by the European Commission as the third-smallest segment.
Proton claim Prevé as its first global car. Targeting domestic and international market middle class income earner.
1) Prevé – Product (Atrributes) Preve was launched with a choice of six colours (Blue Lagoon, Fire Red, Tranquility Black, Solid White, Genetic Silver and Elegant Brown) and three trim variants, the Executive MT, Executive CVT and Premium CVT respectively. Both Executive trim variants are powered by Proton's 1.6L CamPro IAFM+ engine. The Executive MT is paired with a five-speed manual gearbox whereas the Executive CVT is equipped with a six-speed CVT. The Premium trim is offered with the superior 1.6L turbocharged CamPro CFE engine, mated to a seven-speed CVT, also known as ProTronic, Proton's version of a manumatic transmission.1
Prevé the very first of PROTON’s new generation of cars built with the intention of expanding its prowess in the global market.
Prevé design was a joined effort by international consortium representing experts from South Korea, Italy, France, Malaysia and Germany. Whereas Europe, Japan, South Korea and Australia are the source for several components of the car. Thus, resulting in international mix of components, style, concepts and process of a vehicle.

Prevé design was a joined effort by international consortium representing experts from South Korea, Italy, France, Malaysia and Germany. Whereas Europe, Japan, South Korea and Australia are the source for several components of the car. Thus, resulting in international mix of components, style, concepts and process of a vehicle.

Figure 1: Photo from the Launching of Prevé2
Prevé also available on lef hand drive to cater for the international market as part of Proton master plan.
2) Prevé - Price
1.6 IAFM (M) Executive priced from RM 59,990, the 1.6 IAFM CVT Executive from RM 62,990, and the 1.6 CFE (turbocharged) CVT Premium from RM 72,990 within Malaysia. Equivalent respective foreign currencies apply for importing countries. All prices are OTR including insurance and a generous five-year/150,000-km warranty. In addition, within Malaysia Proton differentiate the price offered to the following state Labuan, Langkawi and East Malaysia.
3) Prevé – Place (Distribution)
Prevé first introduced to the international market in 18 Oct 2012 in Australia and followed by Thailand. In the year 2013, Prevé made its debut in Brunei and Singapore during the first quarter and Indonesia for the Second quarter. Proton looks forward to launch Prevé in the United Kingdom.
Proton sales and distribution is handled by the following subsidiaries within their origin of incorporation (see Table 1).
Table 1: Sales and Distribution Functional entities No. | Subsidiaries | Representing countries | 1 | Proton Marketing Sdn. Bhd. | Malaysia | 2 | Proton Edar Sdn. Bhd. | Malaysia | 3 | Proton Parts Centre Sdn. Bhd. | Malaysia | 4 | Proton Cars (UK) Limited | United Kingdom | 5 | Proton Cars Australia Pty. Ltd. | Australia | 6 | Proton Motors (Thailand) Co. Ltd. | Thailand | 7 | Lotus Cars Australia Pty. Ltd. | Australia | 8 | Proton Singapore Pte. Ltd. | Singapore | 9 | PT Proton Edar Indonesia | Republic of Indonesia | 10 | Lotus Cars USA Inc. | United States of America |

Proton also has exports potential as in the past to South Africa, Middle East, Nepal, Sri Lanka, Pakistan, Bangladesh, Taiwan, Cyprus and Mauritius.
4) Prevé – Promotion
Proton created a promotional video leading up to the launch of Prevé. On top of official advertisement which lasted for 1:03 minutes aired in domestics and importing countries. Proton asked Frenchman Jean Alesi, F1 legend and Lotus ambassador, to make a case for the Proton Prevé—a car that he discovered to be “a real Proton car with real DNA”. The clip is also made available online such as on YouTube and websites e.g www.livelifedrive.com
A dedicated facebook account was also created to interact online users and potential customers. Addressing inquiries and providing updated information.
Proton put a catchy phrase to Prevé of which Drive It to Believe It. Promotion among others, in any particular month Proton through its authorized dealer Proton Edar provides rebates to customers (see Table 2)
Table 2: Proton Prevé Promotion September 20133 Model | Transmission | Rebate | After Rebate | Proton Preve Executive (S) | Manual | RM 3,500 | RM 56,040 | Proton Preve Executive (M) | Manual | RM 3,500 | RM 56,490 | Proton Preve Executive (S) | CVT | RM 3,500 | RM 59,040 | Proton Preve Executive (M) | CVT | RM 3,500 | RM 59,490 | Proton Preve Premium (S) | CVT | RM 4,000 | RM 68,540 | Proton Preve Premium (M) | CVT | RM 4,000 | RM 68,990 | Exceptionally, each Prevé bought in Australia comes with % years warranty, 5 years roadside assist and 5 years capped-price servicing scheme

COMPANY BACKGROUND
PERUSAHAAN OTOMOBIL NASIONAL SDN. BHD. (“PROTON”)
Figure 2 : PROTON Company Logo

PROTON Business Strategy
PROTON is a national company car incorporate on 7 May 1983 with a significant position in the performance segment of the Malaysia automotive market. PROTON pioneered Malaysia’s venture into the heavy industries. Having rebounded considerably from setbacks in the 2007 (see Exhibit 3). The company reversed the sales declining in 2010 with substantial capital investment over the last quarter of a century and the corporate philosophy that success can be achieved by having ‘the right car for the right market, at the right price and at the right time’, PROTON commands a substantial share of the domestic market for passenger cars and through the years, has expanded its international footprint.

PROTON’s business activities span throughout the whole automotive value chain encompassing vehicle engineering, research and development, manufacturing, distribution, sales, after-sales services as well as financing. The foundation of the Group’s growth is due to the understanding of the economic development stimulus, diverse customer needs and the ability to translate them into products that customers want, through research and development. The current portfolio of PROTON models includes the Saga, which was named Best Model of the Year for two consecutive years 2009 and 2010; the Persona, winner of the 2008 ASEAN Automotive Award for Best Model of the Year; the stylish Gen.2; the fun-to drive Savvy; the desirably sporty Satria Neo; Malaysia’s first home-grown multipurpose vehicle (MPV), the Exora; as well as the Inspira.

Also in the Group’s portfolio, is the world-renowned Lotus sportscar brand, with models such as Elise, Exige, Europa and the Evora, the latest supercar that remains true to Lotus’ heritage and core philosophies of being Visually Stunning, Exhilarating, Agile and Responsive, to suit a range of customer demands and preferences.

The company is a public limited company incorporated and domiciled in Malaysia, and was listed on the Main Market of Bursa Malaysia Securities Berhad.

On 16 January 2012, DRB Hicom Berhad entered into a conditional share sale and purchase agreement (“SSPA”) with Khazanah Nasional Berhad (“KNB”) to acquire 234,734,693 ordinary shares of RM1.00 each in PROTON Holdings Berhad (“PROTON”) (“PROTON Shares”), representing approximately 42.74% of the issued and paid-up capital of PROTON for a total cash consideration of RM1.29 billion or RM5.50 per PROTON Share. On 17 January 2012, the Company acquired 7.27% equity (or 39,927,000 PROTON Shares) from the open market at prices ranging from RM5.40 to RM5.47 per PROTON share, for a total cash consideration of RM217,431,000. On 16 March 2012, the acquisition of 42.74% equity interest in PROTON from KNB was completed. As a result, PROTON became a subsidiary of the Group as at 16 March 2012.4

On 16 May 2012, PROTON’s entire issued and paid-up share capital was removed from the Official List of Bursa Securities.

Table 3: PROTON Unit sales History (Malaysia) | PROTON Sales Volume 5 | Passenger CarsTotal industry volume 6 | Market Share (%) | 2007 | 88,635 | 442,885 | 20 | 2008 | 112,566 | 497,459 | 23 | 2009 | 151,280 | 486,342 | 31 | 2010 | 163,078 | 543,594 | 30 | 2011 | 158,657 | 535,113 | 30 | 2012 | 141,1217 | 552,189 | 26 |

Note: (i) Passenger Vehicle industry reclassified in January 2007 and includes all passenger carrying vehicles.
i.e. Passenger Cars, 4WD/SUV, Window Van and MPV models.

FINANCIAL INSIGHTS OF PROTON
Table 4: PROTON Statement of Comprehensive Income for the financial year ended 31 Mar 20138

For the Financial Year 2011, PROTON Holdings Berhad posted a consolidated Profit Before Tax (PBT) of RM214 million, which is 18% decrease compared to the PBT of RM261 million in the previous financial year.

This was mainly attributable by the higher branding costs and restructuring expenses incurred by Lotus Group International Limited, which has undergone a business transformation exercise. Nevertheless, these efforts have shown positive signs with the successful global unveiling of five new Lotus sports cars namely Esprit, Eterne, Elise, Elan and Elite that are due to go on sale in2013.

The increase in revenue for the year ended 31 March 2011 grew by 10% to RM9 billion compared to RM8.2 billion posted in the last financial year was as the result of encouraging sales recorded by the three core models – the Saga, Persona and Exora.
PROTON under the new management vision is “To be Number 1 and continuously excel in all that we do.”9

Critical Success factor
In light of the recent acquisition by DRB –HICOM and after experiencing extensive due-diligence and operational audit review, DRB –HICOM are set to a new playing field for the automotive business unit of Proton.
DRB-HICOM whilst reviewing Proton’s operation has set important objective in congruent with its critical success factors of which can be perceive in the marketing perspective as follow:
Product
DRB –HICOM is determined to bring PROTON cars up-to-mark through their QCD (Quality, Cost and Delivery) approach. It has worked thus far for the group for the past seven years and the management did not see any impediment this strategy will not work for Proton.
Proton has come along way since their decent models were introduced Wira, Waja and Perdana. Proton did not have replacement models for such legacy. To progress Proton needs to introduce exciting models in all market segments over the coming years and this model be sourced locally. Hopefully this will increase competitiveness versus other models.
Price
Realising the fact that it took 3 years to bring a model into production, DRB-HICOM tend to leverage on the existing operations and its operational standards. Taking opportunities through platform sharing, component commonality and efficient vendor management by entering negotiations with the International Original Equipment Manufacturers (OEMs) for collaborative partnerships. In turn for cost reduction and margin increase.
Promotion
DRB-HICOM is serious in reclaiming the pole position. DRB_HICOM realise that over time there has always been a perception issue amongst the public about Proton. The cars have lost their appeal. In consequence, Proton cars lost its number 1 position in the automotive industry. Proton used to have 60% over the market shares in the 1990s, however the declining trend submerge the Proton ability to grow despite several stimulus plan injected by the government. Though DRB-HICOM wants to reign the market share. Making PROTON the number 1 choice again in Malaysia with a production target of more than 500,000 cars per annum to be achieved in the next five years.
The entire 12,500 workforce are also expected to be well versed of its entire models to manage the sophisticated customers. Their attitude must move in tandem with the overall vision for Proton.
Place
Saturated Market in Malaysia has pushed DRB-HICOM to go beyond national borders. PROTON used to export cars to more than 50 countries, mainly the United Kingdom, South Africa, Australia, Singapore, Brunei, Indonesia, Thailand, the Gulf states and the Middle East region.
Moving forward, DRB-HICOM will focus on specific markets that offer sizeable, high-growth potential, such as ASEAN, Australia, the United Kingdom and China, capitalising on product advantages and technical capabilities.

Critical Success factors are strongly related to the mission and strategic goals of Proton business. Whereas the mission and goals focus on aims and what to be achieved, critical success factors focus on the most important areas and get the very heart of both what is to be achieved and how Proton will achieve it. The relationship can be visualised as per the following Figure 3.

Figure 3 : Critical Success Factors, Missions & Goals for Proton
MISSION: To lead in the growth of the nation in the areas of DRB-Hicom’s core businesses

CRITICAL SUCCESS FACTORS * Sustain successful relationships with international Original Equipment Manufacturers (OEM)-Price * Increase competitiveness versus other automotives. - Product * Improved public perceptions. - Promotion * Attract & satisfy new customers - Place * manage relationships with customers well
GOALS
* Regain market share. make PROTON the number 1 choice again in Malaysia with a production target of more than 500,000 cars per annum to be achieved in the next five years * Expand product range to attract more customers * Improve production quality and cost saving * Managing sophisticated consumers

MISSION: To lead in the growth of the nation in the areas of DRB-Hicom’s core businesses

CRITICAL SUCCESS FACTORS * Sustain successful relationships with international Original Equipment Manufacturers (OEM)-Price * Increase competitiveness versus other automotives. - Product * Improved public perceptions. - Promotion * Attract & satisfy new customers - Place * manage relationships with customers well
GOALS
* Regain market share. make PROTON the number 1 choice again in Malaysia with a production target of more than 500,000 cars per annum to be achieved in the next five years * Expand product range to attract more customers * Improve production quality and cost saving * Managing sophisticated consumers

Critical Success factor
Comparison of Prevé with other brands on the critical success factor of Prevé
Product
Prevé as the name suggest is the proof that the Malaysia car maker had what it takes to produce a global car with global standards. In truly understanding the car's quality, reliability and refinement one must compare with its rivals.
It is critically acclaimed that PROTON takes pride on its Prevé's turbocharged 1.6-litre CFE Campro engine that produces an output in equivalent to that of a naturally-aspirated 2.0-litre engine.
In the table below, it is clear that there is not as much power as the other 2.0-litre engines, but the impressive torque of 205 Nm over a wide 2000-4000 rpm range is not matched by either the Japanese or Koreans. 10

Table 5: Performance Review Prevé within its Rival10 | Prevé 1.6 Premium | Altis 2.0V | Civic 2.0S | Forte 2.0 SX | Elantra 1.8 | Engine Capacity (cc) | 1561 | 1987 | 1998 | 1998 | 1797 | Peak Power (HP) | 140 | 146 | 155 | 156 | 150 | Peak Power rpm | 5000 | 6200 | 6500 | 6200 | 6500 | Peak Torque (Nm) | 205 | 187 | 188 | 194 | 178 | Peak Torque rpm | 2000-4000 | 3600 | 4500 | 4300 | 4700 | Transmission | CVT (7 ratios) | CVT (7 ratios) | 5-speed auto | 6-speed auto | 6-speed auto | Price (RM) | 72,990 | 132,005 | 130,995 | 97,800 | 111,888 |

Table 6 shows the dimensions of Prevé in comparative of other C-segment models. Prevé appears to be wider, longer and taller than the Japanese and Korean model. Although, Prevé is the second heaviest by comparison.

Table 6: Prevé Dimension Comparison with its foreign Rival10 | Prevé 1.6 Premium | Altis 2.0V | Civic 2.0S | Forte 2.0 SX | Elantra 1.8 | Length (mm) | 4543 | 4540 | 4450 | 4530 | 4530 | Width (mm) | 1786 | 1760 | 1750 | 1775 | 1775 | Height (mm) | 1524 | 1465 | 1435 | 1460 | 1445 | Wheelbase (mm) | 2650 | 2600 | 2700 | 2650 | 2700 | Front Track (mm) | 1542 | 1520 | 1500 | 1557 | 1551 | Rear Track (mm) | 1542 | 1520 | 1525 | 1565 | 1564 | Luggage (litres) | 508 | 475 | 415 | 416 | 420 | Fuel Tank (litres) | 50 | 55 | 50 | 52 | 48 | Kerb Weight (kg) | 1340 | 1315 | 1315 | 1359 | 1289 |

In comparison with its siblings most significant is the Prevé's 2650 mm wheelbase. This is a good indication of legroom. It is 50 mm shorter than Civic and Elantra of 2700 mm. Prevé overcome the deficiency in extending the boot compartment by having the largest space in its segment.

Table 7: Prevé Dimension Comparison with its internal Rival10 | Prevé 1.6 Premium | Persona | Waja | Inspira | Length (mm) | 4543 | 4477 | 4470 | 4570 | Width (mm) | 1786 | 1725 | 1740 | 1760 | Height (mm) | 1524 | 1438 | 1420 | 1490 | Wheelbase (mm) | 2650 | 2600 | 2600 | 2635 | Front Track (mm) | 1542 | 1475 | 1475 | 1530 | Rear Track (mm) | 1542 | 1470 | 1470 | 1530 | Luggage (litres) | 508 | 430 | 408 | 350 | Fuel Tank (litres) | 50 | 50 | 60 | 59 | Kerb Weight (kg) | 1340 | 1245 | 1235 | 1335 |

In Australia, Prevé was accorded with the highest level of occupant safety, namely the 5-STAR Australasian New Car Assessment Program (ANCAP) rating. The rating is an added value to the reliability of Prevé.
Price
With reference made to Table 5 and Table 6 Factoring in the prices, the Prevé 1.6 Premium appears like good value from a performance and dimension stand-point.

Promotion
Attaining a 5-STAR Australasian New Car Assessment Program (ANCAP) rating is good publicity and added value. Such high quality will be a hallmark of Preve for both export and domestic markets, as we believe that safety is prioritised for all our consumers regardless of variants of vehicles purchased. This is a strong indication that Prevé meet the Australian Safety Environmental and Quality Standards and can freely enter that country’s market.
Being a national car maker with close ties to the government has it own advantage. Proton is being made as the official logistics for most of the government agencies.
Proton is implementing the following marketing activities: * Advertising –Internet, Posters, Leaflet, Newspaper report * Direct Marketing – issuing Newsletter * Public relation – Press release * Model Display at showroom * Roadshows – conducting lucky draw events, test drive * Sales promotion – giving away rebates, discount and free gift * Events Sponsorship

There is a similarity in the activities undertaken by the rivals. The different is merely the quantum of each offers and prize give away.
Place
Under the new administration, DRB HICOM is looking forward to reestablished Proton ability to exports cars more than 50 countries, mainly the United Kingdom, South Africa, Australia, Singapore, Brunei, Indonesia, Thailand, the Gulf states and the Middle East region.
On the export front Proton is losing market share in the UK to companies like Hyundai and Kia. In 2010, it only managed to sell 767 cars in the UK where during the 1980s and 1990s it sold tens of thousands of cars each year. It is losing in terms of quality and design and Proton needed more than a cosmetic touch to regain market share.11
The following figures shows the sum of annual export for Proton cars from 1986 to 2009

Figure 4: Annual export of Proton cars 1986-200911

Not forgetting domestic market is still within the interest of DRB-HICOM. As part of its corporate social responsibility and performing it’s due to the government of Malaysia.
The following figures shows the sum of annual export for Proton cars from 1986 to 2009

Figure 5: Proton Automobile Sales in Malaysia 2002-201211

With the introduction of Prevé it is hopefull that the Proton sales would eventually increase.

PART TWO
SWOT Analysis
Strengths
Proton has been improving its operational cost management which resulted in cost saving. The improvement has been transpired through competitive and low price for most of the model especially Preve.
Besides that current strategic partnership with MMC and Lotus has shown an impact of engineering confidence especially in domestic consumer market.
Being the largest local car producer, it has expand the logistics advantage where dealers and service maintenance has reached 1000 vendors throughout Malaysia.
Model Preve is the first malaysia’s car model to be awarded 5 star for safety assessment by Australia New Car Assessment Program (ANCAP) and Malaysia Vehicle Assessment Program (MVAP) by MIROS. This award has brought up the preve model to be competitive in global market.
Weaknesses
Preve model has been aspired to enter global market. It has focus more on the safety aspects and the pricing aspects. However the focus has pull down the performance value in the class segment which it ought to belong to. 1.6 liter are low comparing to the competitor model of the same class segment.
Apart from the aspects of performance, the design itself has received critics from major car magazines. It was said not to have excitement on the design and styles which will affect the consumer purchasing decisions.
It could be an opportunity being a GLC, however political interference has damaged the creativity and strategic planning which prevent any plan from moving forward. It also operates without much liberty in decision making thus makes the models has slow growth in the international market.
Firms and Product Reputation: Proton overall has suffered poor brand image, it came from the previous reputation in safety, quality, design, style, price and political interference. Proton today does not carry brand equity, though in 2012 proton managed to achieve gold in Trusted Brand Award by ReadestDigest in automobile category, it didn’t win in the Putra Brand Award assessed by local body. A weak brand name as well as lack of brand recognition or award makes it difficult for proton car to penetrate new market which is already showered by big auto player such is Toyota and General Motor. Proton car accorded with “a problematic car” title by several reviews due to continuous complain of breakdown and faulty parts by customers.
Efforts to promote Proton cars including huge discount and longer warranty for overseas model were carried out. However the response so far is not quite favorable. Below is one of the comment from the BBC TopGear, a well known auto reviewer based in UK. “We don’t know what Malaysian motorists did to upset the gods, but it must have been something pretty serious, judging by the punishment they seem to be getting. Still, at least the domestic audience thinks this stuff is the norm – what on earth do they think they’re doing bringing it to the UK? ”
(source http://www.topgear.com/uk/proton).
The re-fit and re-badge initiative, for example “Proton Inspira” has not go down well. It should have propelled Proton’s brand to the world stage as Proton Inspira is the twin of more popular and reliable Mitsubishi Lancer. However, this has lead to the perception that, Proton is lack of innovation, unable to produce its own world class , and a 100% home effort car is a few years back in term of technology.
Due to this, prospective buyers are being discouraged from buying a proton car. To them, proton car is associated with low quality product.
The Product: Proton cars are always associated with poor fit and finish regardless of which model. Having awarded with five(5) stars ANCAP safety rating, Preve still suffer badly from fit and finish. It is a known fact that after two years in use, rattling sound will be heard from car’s joints. Due to this, a second-hand value for proton is way cheaper than the brand from Japan such is Toyota, Honda and Mitsubishi.
Price: Being a home manufactured car, Preve (RM72,990) is considered pricey as compared to other brand of the same categories (without 300% Excise Tax: Altis RM44,001; Civic RM 43,665). The foreign manufactured car is still more expensive due the tax duties imposed (refer to Appendix: Excise Tax table) which is three time than its original price. Lower income group will be compelled to by Proton cars as it is cheaper.

Small Market Share/Penetration: Proton has been around for over three decades now. It relies primarily on domestic sales and revenue. Currently, proton cars are sold only to 25 countries mostly in Asia. Proton has never been able to market its car to most developed country, United States as it fails to meet strict U.S automobile regulation. Should Proton decide to widen it market share, supply chain could be an issue especially shipment to overseas market.
Opportunity
Being a government link company through DRB Hicom via Khazanah, It holds the national interest in terms of domestic market. It could also benefit from the bilateral and multilateral agreement between BIMP EAGA, ASEAN, others country like China and India.
Threat
Import cars in the same segment like Toyota Altis and Honda Civic is in lead for performance, quality and safety. Preve has been left as it is not a match for c segment class except the low price it could offer.
Malaysia has signed the Asian Free Trade Agreement (AFTA), it was mandated in 2008 which reduce the tariff of imported cars by maximum 5 percent. It make international rival looks cheaper than Preve model.
TOWS Analysis External Factor
External Factor
Internal Factor
Internal Factor | External Opportunities(O) 1. GLC – Government backing 2. Bilateral/Multilateral free trade agreement . | External Threat(T) 3. Asian Free Trade Agreement (AFTA) 4. Domestic competitor e.g. Perodua | Internal Strength(S) 1. First Malaysian car to be awarded 5 star by Australian New Car Assessment Program (ANCAP) & MVAP Malaysian Vehicle Assessment Program (MVAP) by MIROS 2. Domestic product placement where more than 1000 vendors including maintenance and service. 3. Strategic partnership with MMC and Lotus. 4. Relatively cheaper | SOStrategies that use strength to maximize opportunities 1. Strategic partnership with well known car makers 2. Follow market penetration strategy by expending present in US as well as in other developed market 3. Product recognition. | STStrategies that use strength to minimize threat 1. Develop competitive price variant of Preve. 2. Direct R&D to focus on fuel efficiency. 3. Open foreign factory to gain international market share e.g. US at lower cost. | Internal Weaknesses(W) 1. Poor performance comparing to its price and class 2. Green engine technology is not available in any of the proton car. 3. Supply chain issue especially in shipment to overseas market 4. Poor fit and finish 5. Proton Brand is relatively small or unknown in auto world. | WOStrategies that minimize weaknesses by taking advantage of opportunities 1. Product placement for international market 2. Strategic partnership for green technology engineering. 3. Train local employer by participating internship program with the strategic partner. | WTStrategies that minimize weaknesses and avoid threat 1. Strategic partnership 2. Enter difference class segmentation i.e from c to b to lower down high product expectation |

Strength-Opportunities (SO)
Based on the tows matrix, the strategies that could maximize strength through opportunities (SO) are 1) Preve is the introduction model to enter international market. To gain brand recognition, strategic partnership with other brand are crucial to enhance brand equity. It will also promote utilization of technologies for engineering and design in Preve later version. 2) As the national car maker, it will maintain the interest of overseas investment for better international placement by maximixing the bilateral and multilateral agreement with foreign countries model Preve cpuld penetrate US market
Strength-Threat (ST)
Strategies that use strength to minimize threats (ST) are; 1) To develop variance and customize options in their selling approach, it gives customer the chances of selecting their own interior design and accessories which also enable customer to minimize cost and maximizing premium needs from this model. 2) By having a good operational cost it helps proton to produce model preveto become competitive price in its class it will allows Preve to be in line with other competitors in the market.
Weaknesses-Opportunities
Strategies that minimize weaknesses by taking advantage of opportunities (WO) are; 1) To gain product placement by having strategic partnership with international counterparts, it 2) To become take advantage with its strategic partner in niche market such as green tech engineering. 3) To own technical expert by train or participate in internship program with the selected strategic partner.
Weaknesses-Threat
Strategies that minimize weaknesses and avoid threat (WT); 1) To have this model to b introduce to international market, it must gain recognition by other countries by partnership, it can also rebrand it name to suit the foreign country preference or to suits their local requirement. This can only be done by having local counterparts in other countries and good partnership will be an advantage to this model. 2) By having partnership it could also increase the latest adaptation and compatibility of interior accessories such as gadgets.

PART THREE
Strategic Planning and Implementation: Short to Mid Term
For first time buyer; Rebate
To encourage buyer especially from the just graduated or just got their first month salary, Preve price should be priced lowered through rebate. This should be called “graduated and first employment” program. Preve premium should be able to entice and excite young generation as it is powered by turbo engine. The same rebate should be extended to the first Proton car buyer as well.
Lower interest rate and zero down payment
To further spur the sales of Preve, lower interest rate should be introduced. Current scenario is that, the interest rate for imported cars are lower than that of local car. Proton should discuss with the government to intervene and force the car loan provider to offer less or similar interest rate for all type of cars of the same class segment.
Indirect Promotion
Being a GLC company, government must help Proton in every bit. All government department or agency should buy at least 2 preves for the use of e.g. head of departments. This will help indirectly promote Proton’s new product which is in this case, PREVE. Other GLCs should also be encouraged to so. The same indirect promotion should also be extended to other proton model.
Preve variants :Competitive Price
With 5 stars award by ANCAP, Preve should be accepted globally. Riding on this recognition, Preve should be produced more variant with competitive price. Currently, there are only 3 variants available as mentioned in the Part I. The cheapest is RM 59,990. This price could be further reduced by having a basic variant e.g. without radio, sport-rim etc without compromising the Preve quality as a whole.
R & D & Special Edition
To stay relevant on the automobile market, Proton should invest more to improve the current Preve. Protons as a whole have yet to embrace the green engine and hybrid technology. To be well known globally, Proton has to come out with at least one innovation incorporated into Preve.
Preve should be made as a flagship car as it the first Proton car to be awarded 5 stars rating. A special or limited edition with premium features such as performance car version should also be introduced to excite the market. World rally art would be a good venue to show case Preve’s prowess..

Strategic Planning and Implementation: Long Term Strategy
A long term strategy must be carried out to ensure Proton product especially Preve model be accepted as trusted brand domestically or abroad. We outline some of the recommendation as well as how it can be implemented in due course. Some of our taking could have been previously discussed by relevant parties but could not be implemented or unsustainable due to opposition by some affected parties or resource limitation. In order for this recommendation to be materialized, Proton must make use of its privilege as GLC Company by forcing the government to implement certain policies that beneficial to Proton or otherwise Proton will cease to stay competitive a few years time.
The recommendation should enable Proton to increase its market share domestically or abroad.
10 years scrap program
Proton Berhad and government introduced Xchange program in 2007 to encourage current proton car owner to trade in their old car to purchase a new proton car. It is a government funded scheme. Under this Xprogram, qualified applicant will be given RM5,000 discount. This program will run until December 31 2009 or until the fund provided by government is fully use up. Overwhelming responses was received that Xprogram was discontinued in October 31 2009 after using up the fund provided by government.
Proton and government should introduce this program again to stimulate sales of Preve and other Proton models. The same program should be extended to abroad market as well. For the well-being of second-hand or used car dealers, this program shall be done in 5 years interval.
Proton First than Foreign Car program
To increase domestic market share, imported car in the same segment or a direct rival (e.g. Toyota Altis and Honda Civic) to Preve need to be limited with condition. This should be applicable to other proton model as well. However, this will likely draw unfavorable response from public. The public concern could be addressed by giving them options; they could still buy their imported dream-car by fulfilling one of the following condition. a. Current owner of Preve b. One of the family member own at least one 3rd latest model from Proton.
Proton Car Financing
Most of the car loans are financed by the profit oriented banks. Interest rates are relatively higher ranging from 2.9% to 4.5% annually as compared to imported car which interest rates ranging from 2.35% to 3.0%.
Proton Berhad should have their own financing arms that offer lower or similar interest rate scheme as applied to the imported car. This financing arm could be called as Proton Automobile Bank (PAB). The business orientation of PAB should be more toward providing facilities to enable those “just graduated” or to those with less purchasing power to own a car. Proton could emulate the business strategic practiced by airlines AirAsia “Everyone can fly” to Proton “Everyone can have Proton Car”. More Proton Preve on road means, Preve is a trusted model. This could pave the way for subsequent series of Preve.
Strategic Partnership
The current market shares of Proton cars are concentrated in Asia where regulation about car safety and reliability is not as strict as developed country like US. Proton tried to enter US market in 1998 but failed to meet US strict automobile regulation. It is a fact that, any products that gained public acceptance in US will be accepted globally. Proton should consider US as top target market. Sentiment about Proton’s lack of quality could be addressed by strategic partnership with US’s car manufacturer e.g. General Motor.
In 2004, Proton was in discussion with General Motor about strategic alliance but did not materialized as Proton was commanding a significant market share at that time. It is high time that Proton revisit this feasibility due to declining market share even on its own turf in the recent years.
Completely Knock Down (CKD) Plant
Consumers are always looking for a cheaper yet reliable car. Cheaper but reliable should be attractive and exciting. Proton should leverage on the advantage of Preve being awarded 5 star rating by ANCAP. Apart from cheaper variant, Proton should further reduce the price by having a assembly plant in the target country just like Toyota having assembly plant in Thailand.

APPENDICES: BROCHURES

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3. My Best Car Dealer. Retrieved September 15, 2013 from http://mybestcardealer.wordpress.com/2013/09/14/proton-preve-proton-promotion-september-2013/

4. DRB HICOM Berhad Audited Financial Statements 2013 Bursa Malaysia. Retrieved September 15, 2013 from http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?category=AA&sub_category=all&alphabetical=All&company=1619

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8. Annual Report 2011 Bursa Malaysia. Retrieved September 15, 2013 In http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?category=AA&sub_category=all&alphabetical=All&company=5304

9. DRB HICOM Berhad Annual report 2013 Bursa Malaysia. Retrieved September 15, 2013 In http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?category=AR&sub_category=all&alphabetical=All&company=1619 10. Seow, YH. 2012. How Does The 2012 Proton Prevé Compare Against C-Segment Rivals?. In Live Life Drive Retrieved October 16, 2013, http://www.livelifedrive.com/malaysia/news/view/1500/how-does-the-2012-proton-prev%C3%A9-compare-against-c-segment-rivals

11. Sam, CK. 2013 A Tale of Two Cars - Proton and Hyundai In Malaysia Chronicle. Retrieved October 16, 2013. http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=105482:a-tale-of-two-cars-proton-and-hyundai&Itemid=2#ixzz2htj7L93S