Proton's Electric Vehicle: Marketing Mix and Sustainability Report

This report provides a comprehensive analysis of Proton's electric vehicle (EV) strategy in the Malaysian market, focusing on its sustainable product profile. It begins with an introduction highlighting the growing importance of EVs and the Malaysian government's push for regional electric mobility. The report then delves into Proton's internal and external environment, utilizing SWOT and PESTLE analyses to assess its strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors influencing its operations. The report also examines Proton's segmentation, targeting, and positioning (STP) strategies, outlining how it plans to segment its customer base based on demographic and psychographic factors, target specific segments, and position its EV products based on quality, sustainability, and features. Finally, the report details Proton's marketing mix, including product, price, place, and promotion strategies, emphasizing competitive pricing, physical store presence, and a mix of traditional and non-traditional promotional methods to reach its target market. The conclusion summarizes the key findings and offers recommendations for Proton's EV strategy.

Proton's Sustainable Product Profile-Electric Vehicle

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................3
Proton’s internal and external environment analysis...................................................................3
Proton segmentation, target market and positioning...................................................................6
Proton’s marketing mix...............................................................................................................7
Conclusion and recommendations...............................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
In the recent times, business units, in automobile sector, are placing high level of
emphasis on introducing electric vehicle in market. Now, electric cars are introduced in the
market by keeping in mind concern regarding greenhouse gas emission. Electric cars make
significant contribution in global warming and helps in building society sustainable. In Malaysia,
the main motive of government is to become an important participant in regional electric
mobility market after the period of 2030. It shows that high scope exists in Malaysia pertaining
to electric vehicles. Moreover, electric or eco-friendly vehicles are highly beneficial from the
perspective of both environment and customers. In the context of environment, eco-friendly cars
ensure aspects related to no fuel, no emission etc. The present report is based on Proton which is
laying focus on R&D activity with an objective to improve quality of vehicle for future
commercialization. In this, report will provide deeper insight about internal and external factors
which have an impact on Proton’s product, electric vehicle, in Malaysian market. Further, it also
sheds light on STP and marketing mix aspect of Proton.
Proton’s internal and external environment analysis
In order to make assessment of internal environment SWOT analysis has been done. This
tool or model is highly significant which helps in assessing strengths, weaknesses, opportunities
and threats associated with Proton. By doing this, company can analyse how strengths can be
used for capitalizing opportunities. In addition to this, it also gives clear indication about
strategies which need to be undertaken for reducing or minimise the negative impact of
weaknesses or threats.
Internal analysis
Strengths: Business unit is making significant contribution in exports and thereby
contributes in economic growth 7 development. In other words, approx. 14000+ cars are
exported by Proton in other countries (Proton Cars SWOT Analysis, Competitors & USP, 2019).
Proton secured position of leading manufacturer under automobile sector of Malaysia. Proton
exports car to the several countries include UK, South Africa, and Australia. Further, small
volume of exports related to several major countries namely Singapore, Brunei, Indonesia,
Nepal, Sri Lanka, Pakistan, Bangladesh, Taiwan, Cyprus, Mauritius.

Weaknesses: Product portfolio of the company is not too wide which in turn recognized
as its main weakness. Along with this, business organization failed to develop competent
strategic framework for brand recall and attainment of high market share in comparison to global
leaders.
Opportunities: Proton can attain success by acquiring strategic brands associated with
automobile sector. Thus, by emphasizing on emerging market and abroad expansion business
unit can get desired level of outcome or success. By offering advanced eco-friendly or electric
vehicles to the customers Proton can enhance bot brand image and sales.
Threats: Changes taking place in macro environment closely influences operations of
Proton as it negatively impacts sales level (Proton Cars SWOT Analysis, Competitors & USP,
2019). In addition to this, availability of low cost substitute, Chinese manufacturers, imposing
threat in front of Proton. Company is facing bureaucratic issues as earlier it was owned
by govt.
External analysis
It includes several factors such as political, economic, social, technological, legal and
environmental. All such factors give clear indication about external business arena and thereby
helps in setting appropriate strategic framework for the future.
Political factors: From macro-environmental assessment, it has found that government
around the world, including Malaysia favouring low emission vehicles. With the motive to
encourage the introduction of same into market government authority is offering subsidy.
However, changes take place in government regimes and political regulations create issue for the
concerned business unit. Further, it has identified from the evaluation that for improving
business climate of the country government authority is focusing on structural reforms.
Economic factors: Sales of automotive sector is highly influenced from economic
condition prevailed in concerned country. Automotive sector of Malaysia was also highly
affected from the situation of economic crisis occurred in 2007-08. By doing assessment, it has
found that inflation rate in Malaysia accounts for .97% which in turn reflects that purchasing
power of customers neither too high nor too lower. In addition to this, prices of oil is rising
constantly which in turn places negative impact on disposable income. This in turn leads less

investment in an economy and thereby creates situation of unemployment. In this regard, hybrid
or electric vehicle facilitates high fuel efficiency and effectual circulation of money within an
economy (Pestle analysis of Malaysia, 2019). Hence, it can be presented that economic
conditions can be improved by placing emphasis on the manufacturing and selling of hybrid
vehicles.
Social factors: Automotive sector of Malaysia is also highly influences from socio-
cultural trends and preferences of people. In this regards, vehicle maker can get success only
when products are designed and manufactured as per people’s preferences. Thus, for meeting
objectives business unit should manufacture vehicle by keeping in mind the preferences of target
population. In addition to this, cultural aspects also have significant impact on the preferences of
people regarding vehicles. Hence, social trends associated with Malaysian automobile sector is
changing continuously which in turn have direct impact on the sales as well as popularity of
brand or models. Now, customers prefer to purchase cars which make less or no pollution.
Moreover, cars run by combustion engine emit some gases which in turn may cause of air
pollution. Along with this, air pollution also creates health problem such skin & heart disease
etc. Furthermore, mom eco-friendly cars create more noise over hybrid cars. Hence, it can be
said that hybrid or electric vehicle is the best solution of emission generated from electric motor
vehicles.
Technological factors: Under automotive sector, technology and innovation are
considered as key aspects which help company in getting competitive edge over others. For this
purpose, all the leading companies are making huge investment in R&D. Companies are
planning to introduce advanced electric or driverless cars which in turn contributes in sustainable
environment. The reason behind this, now focus of the customers shifted on fuel efficient and
mileage vehicles (Automotive industry in Malaysia: an assessment of its development, 2019).
Thus, by capitalize such opportunity using innovative and effectual techniques business unit can
get desired level of outcome or success.
Legal factors: In this, business units operating in automobile sector, need to comply with
laws associated with product quality and safety. Along with this, companies also need to follow
sustainability or pollution related laws and legislation. There are few standards related to hybrid
cars with which business unit needs to comply with includes emission and fuel economy testing,

battery and capacitor pack safety, energy storage system testing etc. Thus, for ensuring smooth
functioning of business operations and functions Proton should comply with Society of
Automobile engineers associated with hybrid cars.
Environmental factors: For attaining success and building distinct image at marketplace
players of automotive sector need to make on low emission vehicles. Further, electric vehicles
receives tax subsidies and enjoyed support from both government as well as low (A PESTEL
Analysis of the automotive/automobile industry, 2019). In the current times, pollution tests
become stricter as compared to before. Now, government is placing more emphasis on pollution
control due to which test pertaining to eco-friendliness becomes as important aspect.
Proton segmentation, target market and positioning
Segmentation, targeting and positioning (STP) may be served as an approach which
assists in developing appropriate framework for the concerned product or services. Moreover,
STP approach clearly exhibits aspects on the basis of which customers need to be segmented for
the concerned products. Further, it helps in assessing and presenting aspects according to which
product’s characteristics can be presented for attracting target market.
Segmentation: Business entity will segment its customer base on the basis of
demographic and psychographic aspects. Accordingly, Proton will segment people as per
income, age and lifestyle. Moreover, with reference to lifestyle aspect, individuals having
particular interest, beliefs and opinions. As, with the motive to contribute in sustainable
environment some customers prefer to purchase only eco-friendly products and services. Thus,
by making focus on such group business entity can attain aims and objectives. Along with this,
Proton’s new electric vehicle is highly suitable for business or service class people who need to
cover or travel short distance. Furthermore, customers will be segmented on the basis of income
aspect comes under demographic factors. Moreover, electric and innovative cars are usually
highly expensive over motor vehicles. Thus, for success attainment high income class people
will be targeted.
Targeting: For attaining business aim and objectives differentiated targeting strategy will
be undertaken by Proton. Accordingly, different marketing mix will be developed by each
segment. Moreover, sometimes similar marketing mix does not provide high level of assistance
in influencing purchasing decision of targeted segment.

Positioning: Proton will position its product namely electric vehicles on the basis of
quality, sustainability and features. In the advertisement or promotional strategy business unit
will highlight quality and performance of batteries. Further, packaging and cabin interior will be
highlighted in advertisement which in turn helps in influencing customers. Along with this, for
grabbing the attention of customers company will highlight how Proton’s electric vehicle help in
making sustainable environment.
Proton’s marketing mix
Marketing mix may be served as a strategy or tool which is used by business units for
influencing decision making of target market about purchase. It includes combination of factors
such as product, price, place and promotion which helps in fulfilling desired goals and
objectives.
Product: In the existing product portfolio, Proton is adding advanced electric vehicle for
supporting aspect pertaining to sustainable environment. This product of Proton is ideal for
mobility in urban areas. This is highly suitable for short distances as its running on 100%
electricity. Innovative packaging designs and interior will provide customers with an amazing
luxurious experience. Proton will also provide customers with better performing batteries using
latest technologies. New product such as electric car will be more convenient for driving on busy
streets.
Price: With the motive to attract customers and influence sales competitive pricing
strategy will be employed by the business entity of Proton’s. Moreover, now several companies
are working on hybrid or energy saving car system. Along with this, investment in R&D of
automotive firms are too higher. All the concerned or leading companies, operating in
automotive sector, are making efforts in relation to coming up with innovation. In this situation,
by setting competitive prices of electric cars firm can attract large number of customers and
thereby increase the volume of sales. Moreover, now customers take purchasing decision after
making evaluation of each and every aspect regarding price, quality, safety, sustainability.
Further, customers take purchasing decision after doing comparison of all car features in against
to rivals. In this context, by setting appropriate prices in line with competitors such as Tesla,
Toyota etc Proton can attract more customers and thereby gets appropriate profit margin.
Moreover, attainment of high and suitable profit margin is the main motive of firm while setting

pricing strategies or framework. Thus, by using competitive pricing strategy Proton can get
desired level of outcome or success with regards to its sustainable product portfolio.
Place: Business entity will offer electric vehicle to the customers through its physical
stores established in Malaysia. The main focus of Proton for electric vehicle is Malaysia. Further,
it has assessed from the evaluation that contribution of Proton in export is very high. As,
company offers its products through several areas namely Indonesia, Thailand, Singapore,
Australia, Egypt, Oman, Turkey. All such countries also emphasizes on offering hybrid cars with
an objective to contribute in sustainable environment. Referring this, it can be mentioned that
Proton will offer its sustainable cars through physical stores established in such countries.
Promotion: Proton will promote electric vehicles using both traditional and non-
traditional modes. Under traditional mode, advertisements will be placed on television,
newspaper and business magazines. Moreover, businessmen focus on reading magazines and
newspapers on daily basis. In addition to this, old people also read newspapers rather than using
social media more frequently. Along with this, social media marketing strategy will also be
undertaken for developing awareness and informing customers about the benefits as well as
usage of electric vehicle. In other word, owner of Proton will also focus on using social
networking sites such as facebook, twitter, instagram etc for advertisement purpose. The
rationale behind the selection of such mediums are that now people spend more time on social
sites. In this way, by giving advertisements on social site company can develop awareness
among the customers at global level and thereby maximizes both sales as well as profitability.
Conclusion and recommendations
Conclusion
By summing up this report, it has been articulated that Proton’s electric car vehicle
concept will make remarkable contribution in sustainability aspect. It can be seen in the report
electric cars facilitate optimum utilization of limited resources available. Besides this, it can be
inferred that using strengths company can capitalize opportunities available at marketplace.
Further, evaluation shows that by targeting high income class people Proton can increase revenue
and thereby profit margin. It can be summarized that by developing competent marketing mix
Proton can influence customer decision making regarding the purchase of automobiles or electric
vehicles. It can be stated that by highlighting the significance of electric vehicles in the

advertisement business unit can attract more customers. By positioning services on the basis of
environment sustainability and quality aspect Proton can build different image in the mind of
customers over rivals.
Recommendations Proton is recommended to make more focus on identifying gaps take place with regards
to electric car vehicles. By this, company would become able to come-up with advanced
technologies and innovatively designed cars.
 It is advised to Proton to lay emphasis on taking feedbacks from customers regarding
existing electric car vehicles. This in turn helps company in assessing loopholes taking
place in the existing vehicle. Hence, by improving such aspects Proton can provide
customers with satisfactory experience.
 Further, company should focus on intense research which facilitates optimum use of
resources and effectual management of wastage. Moreover, the main objective of the firm
is making environment highly sustainable. Thus, by identifying and providing customers
with innovative electric cars Proton can increase market share to the significant level.
 In order to minimize weakness Proton should undertake prominent brand management
strategies. This in turn significantly contribute brand recall among the customers and
thereby increases sales level. Further, for profit and sales maximization Proton needs to
include wide range of cars in its product portfolio. In other words, Proton should offer
cars with different price ranges by keeping in mind the preferences of both middle and
high income group people.

REFERENCES
Online
Proton Cars SWOT Analysis, Competitors & USP. 2019. [Online]. Available through:
<https://www.mbaskool.com/brandguide/automobiles/5481-proton-cars.html>.
Pestle analysis of Malaysia. 2019. [Online]. Available through:
<https://www.gtu.ac.in/ABP/GCSR%20PDF%202013/810%20Malaysia%202-.pdf>.
Automotive industry in Malaysia: an assessment of its development. 2019. [Online]. Available
through: <https://umexpert.um.edu.my/file/publication/00012427_84790.pdf>.
A PESTEL Analysis of the automotive/automobile industry. 2019. [Online]. Available through:
<https://notesmatic.com/2016/09/automotive-industry-pestel/>.