PRINCIPLE AND PRACTICE OF MARKETING

A successful business that pays close attention to the marketing environment is Perodua Sdn Bhd. They will have a remarkable journey and significant turning point in their cultural development as a result of the Japanese culture that has been assimilated.A corporation needs to keep up to speed with current events and to keep a careful eye on and analyze the changes in the environment they live in. Microenvironments and macro environments are the two sorts of environments.

MKT 420
PRINCIPLE AND PRACTICE OF MARKETING
ASSIGNMENT 1
MICRO AND MACRO ENVIRONMENT
PERODUA
PERUSAHAAN OTOMOBIL KEDUA SENDIRIAN BERHAD
GROUP: NBF2A
N
O
NAME MATRIC NO.
1. SHAH REDZA BIN SHAHRIN 2021243078
2. MUHAMMAD FIRDAUS BIN SHAIFULIZAN 2021620566
3. ABDUL KHADIR BIN ABD RAHMAN 2021260048
4. WAN NOOR FARHANA BT WAN ZAHARUDIN 2021694186
5. NUR RASYIQAH NABIHAH BINTI MOHAMAD GHANI 2021690718
LECTURER: NOR SHAHRUL NIZAM BIN MUHAMAD
SUBMISSION DATE: 22 OF MAY 2022

ACKNOWLEDGEMENT
First and foremost, we would like to express gratitude and be grateful to Allah S.W.T for His
shower blessing throughout our journey to make sure this group assignment is completely done.
We would like to show our sincere gratitude to Sir Nor Shahrul Nizam Bin Muhamad Nor who
is a lecturer for MKT420 for giving us a guideline for this final project. We also like to expand
our deepest gratitude to those who directly or indirectly give some guidance to us by writing this
assignment. Without the team members, this assignment surely cannot be accomplished if
there’s no cooperation among them. The group members as mentioned are Firdaus, Redza,
Khadir, Hana and Syiqah. Highly appreciated the support given and the willingness to allocate
some time just to discuss this assignment and make sure everything goes well.
The marketing environment is a part of the marketing planning process which is encompassed
the micro and macro environment that led and influences the organization's marketing activities.
In a microenvironment, it has, customers, suppliers, competitors, companies, the public and
intermediaries. Meanwhile, the macro is surrounded by demographic, economic, cultural,
political/legal, technological and natural.
Some factors are manageable and others are beyond of firm limit. By keeping alert and aware of
the surrounding of the market environment, the company need to manage how to carry out in an
effective way to maintain success and work from any threats or negative influences that may
affect the work as well
In this report assignment, we will discuss Malaysia's local brand car, which is Perusahaan
Otomobil Kedua Sendirian Berhad (Perodua Sdn. Bhd). There will be two market environments
of Perodua and two different evaluations of the market for this company. At the end of this
assignment, we would analyse what strategies will be used by Perodua to align with the market
environments and how they gain achievement from these two different markets environment.

TABLE OF CONTENT
Page
ACKNOWLEDGEMENT 2
TABLE OF CONTENT 3
1. INTRODUCTION 4
2. MICROENVIRONMENT 5
2.1 Marketing Intermediaries 5
2.2 Customers 6
2.3 Company 6
2.4 Competitors 7
2.5 Public 7
2.6 Supplier 8
3. MACROENVIRONMENT 9
3.1 Demographic Environment 9
3.2 Economic Environment 10
3.3 Natural Environment 10
3.4 Technological Environment 10
3.5 Political Environment 11
3.6 Cultural Environment 11
4. CONCLUSION 13
REFERENCES 14

1.0 INTRODUCTION
“Perodua” is the call name of its official company named as Perusahaan Otomobil
Kedua Sdn Bhd. It’s a private limited company, Perodua was established in 1993 which
brings complete national mobility for Malaysians. Perodua aims to be the leading affordable
automotive brand regionally with global standards. They offer products and services geared
towards customers’ various needs and wants, supported by a far-reaching nationwide sales
and service network for the ultimate convenience of their valued customers. The concept of
“people’s car” or “Kereta Rakyat,” it is proved that the concept is still relevant, practical and
high-value in products and services that are delivered by their operations which is
outstanding performance year by year. Although, Perodua still needs to be concerned about
the market environment itself. One of the preparation is the “Perodua Smart Build” blueprint,
Perodua endeavours to continuously develop the entire ecosystem by achieving a high level
of competitiveness. Even aided by their partnership with Daihatsu Motor Company of Japan
which is one of the big automotive companies that operates in Southeast Asia and worldwide,
besides the investments support, Perodua consistently supports Malaysian suppliers via
technical training, projects opportunity and technology transfer. The Perodua Smart Build is
designed to help Perodua and the automotive ecosystem reap the benefits of the National
Automotive Policy by making the industry more competitive and progressive. As of 31
December 2021, Perodua has sold over 4 million vehicles, supporting a host of Malaysian
suppliers, dealers, and business partners. This in turn creates many jobs opportunity, gives
rise to investment opportunities, and fortifies the nation’s economy.
By following the Japanese work culture, a firm's goals will eventually evolve as they will
eventually compete against each other. For instance, focusing on exclusivity will result in
lesser reach and less intensity of the products as well. A corporation needs to keep up to
speed with current events and to keep a careful eye on and analyze the changes in the
environment they live in. Microenvironments and macro environments are the two sorts of
environments. In terms of demographic, economic, environmental, and other factors, the
macroenvironment refers to the wider social elements that influence the microenvironment.
Meanwhile, the microenvironment refers to the players closest to the firm who influence its
abilities to serve its consumers, such as the supplier, company, and others. At the end of these

findings, there is a sort out and identify deeply Perodua's marketing environments, which can
specify its marketing success.
2.0 MICROENVIRONMENT
2.0 Background
Microenvironments have a lot of effect on Perodua’s performance,
Microenvironmental elements are close to a company and have a direct impact on its
operations and success. Suppliers, shareholders, competitors, customers, and distributors may
also be considered. For a corporation like Perodua and other automobile manufacturers, it is
critical to keep track of the day of the month, keep a tight ticker, and assess the constantly
changing environment. Companies should conduct extensive research on their
microenvironment before deciding on a corporate scheme. There are two sorts of
environmental factors: microenvironmental and macroenvironmental. The close forces to the
company that impact the ability to successfully purchase items for the client are referred to as
microenvironmental influences. This includes;
2.1 Marketing Intermediaries
Marketing intermediaries are referred to as "middlemen." Unless a buyer purchases a
product directly from the manufacturer, sales are always mediated by one or more marketing
intermediaries, often known as middlemen. They do more than take a piece of the pie with
each transaction. For example, AM Bank, RHB Bank, and Islam Bank work as middlemen to
advertise Perodua vehicles. These organizations offer a loan structure that allows consumers
to make a monthly minimum payment while still enjoying the perks of a comfortable car.
They make things more accessible to customers, but they may also help manufacturers
streamline their processes. Other than that, Perodua keeps its sales stable by offering a lot of
dealers and distributors for their sales, and also provides the in-house training for developing
a high competency among the dealers and distributors on sales of Perodua’s vehicles.

2.2 Customer
Customers consider price and functionality while deciding which vehicle to purchase.
Running costs are an essential factor to consider. To better understand them, customers can
be split into five sorts of markets: customer and company markets, reseller markets,
government markets, and overseas markets. Perodua Company offers a variety of
automobiles that can entice buyers, particularly those looking for a low-cost yet efficient
vehicle. Perodua appears to have launched several products that appeal to people of all
socioeconomic backgrounds. It has introduced the Perodua Viva 660 CC for those who seek
low performance and economy, the Perodua Myvi 1000 CC for individuals in the middle
class, and the Perodua Alza 1500 CC for high-performance users and families. The consumer
market in Perodua fabrication indicates that Perodua Company offers a variety of
automobiles that can entice buyers, particularly those who want a reasonable yet efficient
vehicle. As Perodua Company establishes the monetary values as appropriate and low-cost by
consumers, the company primarily targets a person or family who wishes to purchase a
deserving auto at a quality price. Furthermore, the relevant market consists of businesses that
buy commodities and services used in manufacturing. The Perodua Company purchases parts
from other states but collects them in Malaysia.
2.3 Company
For the company, this area is about collaboration, which should exist throughout all
sectors to deliver the item to the client in the desired time frame. Perodua used their co-
worker to promote the brand's entire users in Malaysia, by practising dividing the people
from top management to expand their market at the corporate level and promoting a staff
purchase discount, which will lead to high sales intake from the internal itself. Next is
financial stability from UMW corporation, Daihatsu, PNB, MBM and Mitsui would increase
their brand based on the support from the well-known companies. R&D is a part of their
high-quality products on their manufacturing site due to a test track that was built by Perodua
which specialized in R&D purposes just to make sure that the product is delivered in the best
condition.

2.4 Competitors
Direct and indirect competitors are the two sorts of competitors who may impact
Perodua’s sales. Companies that make the same products in the same industry plus with the
same target market are considered direct competitors. Perodua's direct competitor is Proton,
which sells similar vehicles in the same industry and target market as well, Proton was
targeting the market in a variety classification of people levels of income in Malaysia, and
with the concept of “National Vehicles”, Proton strive to give the best features of the vehicle
itself to the users in Malaysia. Whilst, Perodua keeps maintaining and focussing more on
lower to mid-range income level, this is how Perodua sustain in the microenvironment market
as Perodua always driven a healthy competition while producing their product launch
together with the Proton manufacturing, as the release year of Perodua Ativa and Proton X50
is closely (2020 & 2021), the competition is quite good and advantage to Produa due to the
brand, concept of “People’s Car” and pricing as well. On the other hand, indirect competitors
are any companies that fight for the same client's dollar. Perodua's indirect competitors will
be Toyota, Honda, BMW, and Mercedes, these indirect competitors would not affect the
market for Perodua due to the league is different from what they are in too. Even though
these competitors manufactured cars and compete for consumer spending, it would not affect
Perodua’s market.
2.5 Publics
When it comes to small business growth and future success, one of the most critical
variables is the availability and hiring of the right-fit staff. To manufacture and sell the
products and services, you must have qualified and motivated staff. It is hard for Perodua
Company to grow its brand and develop a distinctive customer experience without an
effective core team with a mission and values. When hiring new people, Perodua Company
may want to think about how the person will fit into the company culture and what they can
bring to it, this particular thing has been solved when Perodua is strictly aligning with the
Japanese culture to develop internal public to give a positive impact on an organization’s
ability to achieve their objective. Next is, Perodua Myvi is the highest sales intake in
Malaysia and still ongoing in production since 2005. Perodua achieves their sales in an

outstanding performance with the sales of this model. “Myvi King” is a name that has been
given by Malaysian road users as it is the most common car involved in the accident, it is
proven in the social media, news and also got a lot of cases on Perodua Myvi users to involve
in the road accident, as this Perodua Myvi’s story getting a hot news day by day, It is free
marketing for Perodua to upsell their products to the users, while the most “Myvi” that
involved in the accident is the production model 2005-2017, It affects the sales to Perodua
“Myvi 3rd generation” with a couple of hundred thousand unit every year from 2017-2021.
Even though it is smaller than the first generation which has up to 1.1M units sold, it still
made the Perodua Myvi the number 1 best selling car in Malaysia and the unit selling amount
keeps rising.
2.6 Supplier
Perodua always cares and is particular with the goods supplied even in raw materials
that get from the supplier. Perodua come out with the policy of supply and demand to
maintain a high-quality performance from its supplier, example of Perodua’s supplier is
APM, the goods supplied will go through Perodua Research and Development Team (R&D),
due to R&D activities, Perodua has also helped build over 120 suppliers, some of which are
listed on Malaysian bourne. All Perodua models are manufactured with over 90% of local
parts. This means Perodua also create job opportunities and actively engages in technology
transfers. This is how Perodua main a good resources to produce goods and services with a
great quality of products as well, they treated the suppliers as a partner to provide a high
customer value

3.0 MACROENVIRONMENT
3.0 Background
Macroenvironment contains large external forces that organisations or businesses
cannot control or dominate. Businesses or organisations need to understand how to control
each factor in Macroenvironment to survive in marketplaces. Few factors commonly affect
Macroenvironment factors such as Demographic, Economic, Natural, Technological, Political
and Cultural forces. Macroenvironment will affect whether the business is low or high in
position. In an automotive business like Perodua, Macroeconomics will be one of the issues
that need to be concerned about. In Malaysia, there are a lot of competitors in automotive
production and that will affect Perodua's business that leading them to know how they are
going to manage and keep maintaining their brand as one of the best automotive production.
3.1 Demographic
Demographic can be described as a study of human populations in terms of size,
density, location, age, gender, race, occupations, and other statistics. In demographic, baby
boomers are known as a population whereby they were born between the year 1946 till 1964,
they represent 28% of the population and 50% of personal income. Baby Boomers will be
divided into two criteria which are Generation X and Generation Y. Generation X is a
population that was born between 1965 and 1976 and become one of the main generations
that will buy the goods by 2010. Generation X is a population that purchased for family use,
while Generation Y is a population that was born between in the year of 1977 to 1994 that
commonly purchased the goods based on something that can impress them either in media,
advertisements or trends. Generation X usually purchased SUV type of 4 vehicle for their big
family use such as Perodua Alza or Perodua Aruz, while Generation Y commonly uses Myvi
or Ativa as their favourite vehicle due to the trending favourite of car users, Perodua strives
for a better idea for every age of the Malaysian road users which provide a variety class of car
from a sedan, hatchback, MPV and SUV, one of their concern is targeting changes in the
workforce, the products they created is for professional users, family users, and white-collar

as well. Not just focusing on National, they also export their car globally to increase their
diversity, example is Sri Lanka, Brunei, Singapore, United Kingdon and many others.
3.2 Economic Environment
The economic environment commonly happens due to economic factors that
commonly changed due to consumer spending patterns and consumer purchasing powers. In
Malaysia, subsistence economies could be related to Perodua as it is one of the contributors to
industrial output. However, the changes in income would be one of the factors affecting their
performance, the value offered by Perodua has the right combination of quality and service at
a fair price. The distribution with middle-class, working-class, and underclass consumer
proves that Perodua is aligned with the economic environment that leads them to be
successful in the automotive industry.
3.3 Natural Environment
However, the unexpected natural environment can affect Perodua Sales. Example on
the situation of Covid-19 of outbreak financial status and spending patterns were affected
how Perodua makes sales. If the economy were having issues with spending patterns to buy
goods is low then sales will be affected and it will cause the profit of Perodua to be low than
the previous year. In the 2020 Covid19-outbreak, most companies were in a dilemma of
positioning their business in the marketplace in the automotive sector. Perodua keep focusing
on marketing promotion and strives for a high sales intake in 2021 with the support from
government agencies to provide the subsidy on a car purchase, the price is quite lower and it
automatically increases the sales intake for the year 2021.
3.4 Technological Environment
The rapid change in technology such as the Internet and communication surely affect
the performance in Perodua, It’s helped Perodua to get free marketing based on the review of
the users in Malaysia. Perodua gets a high opportunity by promoting their vehicles and
getting a direct interest to catch to consumers. Technological forces can be defined as the
factors of a business that creates new technologies, creates new products, and new
opportunities that can develop into higher sales in the business. In Perodua terms, they need
to implement ways that attract consumer demand. Perodua had developed engine efficiency

for a long trip. Commonly, users of automotive cars need an efficient engine to travel to work
and have long trips. They need to use it for long-term use. To fulfil the demand of the
customer, Perodua had developed 1.5cc engine efficiency on their trending model which is
Perodua Myvi and above model, as it’s can attract more users to be their customer of
automotive to ensure customers feel more worth buying their automotive cars. When Perodua
had reach its demand in finding the best car for long term use, it’s will increase the spending
patterns of the customer and will lead to higher sales of Perodua. Engine 1.5cc will ensure
customers feel satisfied while using the car without having any issues with the engine. Due to
their sales being enhanced, people will know about the Perodua model and that can lead
Perodua as one of the famous brands of automotive in Malaysia.
3.5 Political Environment
Political commonly involves laws, government agencies and political action groups. It
will influence and make a rule in organizations and individuals in society. How does a
political environment affect the business in the future or the current? In Perodua, the
automotive manufacturing industry strictly obeys Malaysia’s legislation, tax system, rules
enforcement and many others to get a positive environment for business. Perodua was
included in the Ministry of Transport (MOT), Land Public Transport Commission (known as
SPAD), Road Transport Department Malaysia (known as JPJ) and Malaysian Automotive
Association (MAA). Perodua needs to have good ethics by compiles with Goods and Services
Tax(GST) and social responsibility. It is show that Perodua has a good reputation when it
comes to the political environment.
3.6 Cultural Environment
Social Environment can be identified through consumer needs in their living. In the
current generation, people need to have their cars as one of the important things in their lives.
Some of the reasons are people need to use it for work, for travelling, for business and more.
The more people grab cars will lead to the higher greater number of markets. Some people
were expected on big-ticket items or put-off buying different motor vehicles due to they were
uncertain about the global and financial crisis. Perodua consists of the value for the
Malaysian people, with the core value in the parent of children, children think that Perodua is
the best car for their family as the intake of the Perodua car is quite high among family users

and the car can be passed on from parents to children when the children get into the college,
it is proved that they think is Perodua is the best car for Malaysian, instead of the price is
affordable, the quality is good to use from generation to generation.

4.0 CONCLUSION
Perodua Sdn Bhd is an example of a successful company that is very particular with
the marketing environment. The Japanese culture that has been taken as a part of their culture
will lead to a great journey and milestone for them to grow. When we look at how they react
and respond to the marketing environment itself, the management, operation, and the end-to-
end consumer communication are also a part of the strength of Perodua by holding the
disciplined workers and have higher strategic achievers to make sure that the company and
the brand itself be the best market in automotive sectors. Perodua can be categorized as a
proactive view on responding to the marketing environment, this is due to the Japanese
principle and culture that taking aggressive actions affects forces in the environment itself.
From the model of Kancil until Ativa, we can see that the company is keep develop the
technology and design to attract the consumer to buy, with support and how they react to
microenvironment and macroenvironment help them to change the environment from a threat
to the successful marketing scheme. Perodua went to reactive responding to the marketing
environment when it comes to the new technology inbound and utilize it very well.
In a conclusion, it is not how they operate or manage the company very well, it is based on
how they react to the marketing environment. It starts with the uncontrollable response when
we react and adapt to the forces of the environment, then we can be proactive after we adapt
to the market changes, thus we can strive higher for the company’s growth. Lastly, to make
sustainable businesses after we strive higher, we shall be the reactive response to the
marketing environment and that’s the best way to get a high position of the success when we
can react to unexpected forces in the marketing environment itself.

REFERENCES
Perusahaan Otomobil Kedua Sdn Bhd in the Malaysia Automobile Industry (Syafirah binti
Mohd Shahar) https://www.linkedin.com/pulse/perusahaan-otomobil-kedua-sdn-bhd-
perodua-syafirah-mohd-shahar
The maker of Malaysia’s favourite compact vehicles offers various products and services
designed to suit your lifestyle (Perodua Corporate Branding)
https://www.perodua.com.my/corporate-branding/about-us.html
Global Standards with a regional focus (Perodua Corporate Overview)
https://www.perodua.com.my/corporate-overview.html
Perodua Cars Marketing Strategy & Marketing Mix (4Ps) (MBA Skool Team)
https://www.mbaskool.com/marketing-mix/products/17716-perodua-
cars.html#:~:text=The%20promotional%20and%20advertising%20strategy,brand
%20equity%20of%20the%20company
List of why Myvi have a “King” title (Automology)
https://www.automology.com/antara-punca-kenapa-perodua-myvi-digelar-king-di-
malaysia/
Perodua Myvi (Wikipedia)
https://en.wikipedia.org/wiki/Perodua_Myvi
Brief test drive of D55L SUV in Rawang: most refined Perodua ever (Thomas Huong)
https://www.carsifu.my/car-reviews/brief-test-drive-of-d55l-suv-in-rawang-most-
refined-perodua-ever
Perodua R&D (Perodua Corprate-Manufacture)
https://www.perodua.com.my/corporate-branding/manufacture.html
Spyshot test track Proton & Perodua
https://www.funtasticko.net/ekslusif-spyshots-test-track-proton-perodua-dari-udara/
Responding To The Marketing Environment ( CD Blogger)
https://marketinglord.blogspot.com/2014/02/responding-to-marketing-
environment.html#:~:text=The%20reactive%20marketing%20views
%20marketing,the%20changes%20in%20the%20environment.