Marketing: Assessment, Objectives, and Plan for Perusahaan Otomobil Kedua Sdn Bhd

Running head: MARKETING
Marketing
Student’s Name
University Name
Author’s Note

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Table of Contents
1. Introduction............................................................................................................................3
2. Task 1: Assessment of the current market position...............................................................4
2.1 Product Portfolio Matrix...................................................................................................7
2.2 Market analysis.................................................................................................................8
2.3 SWOT Analysis................................................................................................................9
2.3.1 Strengths....................................................................................................................9
2.3.2 Weaknesses..............................................................................................................10
2.3.3 Threats.....................................................................................................................10
2.3.4 Opportunities...........................................................................................................11
3. Task2: Marketing Objectives...............................................................................................11
3.1 Product Development.....................................................................................................11
3.1.1 Implementation of Uppsala Internationalisation Strategy...............................................12
3.2 Market Penetration.........................................................................................................13
3.3 Market Development......................................................................................................14
3.4 Diversification................................................................................................................14
4. Task 3: Marketing Plan........................................................................................................15
5. Marketing Communication Channels..................................................................................16
5.1 Offline Marketing Strategies..........................................................................................16
5.2 Online Communication Strategies..................................................................................16
6. Conclusion............................................................................................................................17

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7. Task 5: Gantt chart...............................................................................................................18
Reference List..........................................................................................................................20

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1. Introduction
Perusahaan Otomobil Kedua Sdn Bhd, an automobile manufacturing and sales
company headquartered in Malaysia had been established in the year 1993. The major
shareholders in the organisation are UMW Corporation Sdn Bhd with 38% share, MBM
Resources Bhd and Daihatsu Motor Co. Ltd with 20% share and others like PNB equity and
so on. Immediately after the commencement of the production line in Malaysia the company
came up with a hot product named the Perodua Kancil in the year 1994. The product was an
instant hit because with this car, the organisation attempted to catch a new market comprising
of the middle class. The product was a basically a budget friendly mini car that was well
within the reach of the Malaysian middle class. Following the introduction of the Perodua
Kancil in 1994, another SUV model was launched, named RUSA consecutively. The success
of this model of the car enticed the company to instantly the product line. As such, the
organisation came in to direct confrontation with the giant monopolist Proton, in the
Malaysian market.
The immense success in the internal market of Malaysia enticed them to export their
products and the first international market entry was in Indonesia. This followed by market
entries in the economies like Brunei, Nepal, and Sri Lanka, Mauritius and so on. However the
market entry in to the international market could not provide sustainability to the
organisation, as analysed in the report, owing to the following factors.
 Limitations of raw materials
 Increased labour costs owing to shifting of the production line
 Higher transportation costs
It became difficult for the company to manufacture the budget friendly cars and the other
popular models at competitive prices, while operating in the new economies. However,

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considering the nature of the demographic market had occupied already, it became difficult
for them to dramatically enhance the prices of their budget friendly cars. They had projected
them as a company that is excrete in the production of budget cars, and as an impact, they had
instantly received such a market exposure that helped them to expand in the new economies.
Now, it was necessary that a new business model be adopted by the company so that
they could sustain their current international presence in the various countries of South East
Asia. As Balon, Sharma and Barua (2016), suggests, in such a state of doldrums on the brink
of market operations, it is most suitable to select the market entry strategy of Foreign Direct
Investment. As an outcome, the organisation would receive the patronage of the local as well
as national government of the nation where they are operating. As an outcome of that, they
would be receiving access to the raw materials as easily as the local companies, cheap labour
with appropriate marketing skills, as well as bigger sales exposure (Harwit 2016). In this
report, the Indian market have been considered for the feasible market entry channel for the
organisation. The market volume of the country is large and form the Indian market, entry to
the surrounding markets like China, Bangladesh, and Myanmar and so on would be very
easy.
2. Task 1: Assessment of the current market position
Current, the market occupancy rate of the company in the Malaysian market is 40%.
As such the company is still in the leading position with a difference of 25% in the market
acquisition rate from its nearest competitors in the local domain. This implies that the
company is gradually heading towards a state of stagnancy in the local market and further
chances of increasing the revenue share by operating in the home market would be very
difficult for the organisation (Nayak and Bargal 2018). There is virtually no existing chance
of elevating their scale of revenue in the local market. Honda and Toyota, which are the two

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major competitors of the comp any in the Malaysian market are way behind the company at
25% market occupancy rate, each.
Figure 1: Overview of Automotive sales in the Malaysian Market
(Source: Luthra Garg and Haleem 2016)
As Kushwaha and Sharma (2016), states, it is evident that as the market occupancy
rate of the company in the Malaysian market is very high, there is an urgent need of exploring
the new markets that can help them in scanning up the revenue stream. The company has
entered the new countries so far with their existing business model that advocates licensed
partners who would be liable for the import of the cars of Perodua form Malaysia for sales in
the respective countries. However, as evidenced by Kale (2017), the cost of production in
Malaysia has increased considerably for the factors that are discussed above.
Analysing the market condition of the Asian countries, it can be discussed that the
growth potential for any new automobile manufacturing company is the highest in the Indian
market. That is why 3 to 4 new international car brands have opened up their sales units in
the Indian market. On top of that, all the major foreign car brand that are operating in India