Comprehensive Marketing Strategy and IMC Plan for Proton X50

This report serves as a comprehensive marketing plan for the Proton X50 in Malaysia, addressing key aspects such as situational analysis, including strengths, weaknesses, opportunities, and threats within the competitive landscape. It outlines specific Integrated Marketing Communication (IMC) objectives, including corporate social responsibility, brand awareness generation, and promotional strategies. The report details segmentation, targeting, and positioning strategies, emphasizing the unique selling points of the Proton X50, such as its features, competitive pricing, and engine efficiency. It further elaborates on creative strategies, employing both rational and emotional promotional appeals, and suggests the use of comparative techniques to highlight the X50's advantages over competitors like Honda and Toyota. The report also proposes IMC tools like advertising, internet marketing, and sales promotions, culminating in a media schedule, budgeting considerations, and methods for evaluation and control to ensure effective implementation and performance measurement.

Table of Contents
....................................................................................................................................................1
Executive Summary.................................................................................................................3
Situational Analysis..................................................................................................................4
Strength............................................................................................................................................4
Weaknesses......................................................................................................................................4
Opportunity.....................................................................................................................................5
Threats.............................................................................................................................................5
Competitors Analyzing............................................................................................................5
IMC Objectives........................................................................................................................6
1. Implemented Corporate Social Responsibility (CSR)..............................................................6
2. Generate Brand Awareness........................................................................................................6
3. Concentrate on Promotions and Advertisement.......................................................................6
Segmentation, Targeting, and Positioning.............................................................................6
Unique Selling Point........................................................................................................................7
Creative Strategy and Justification........................................................................................8
IMC Tools...............................................................................................................................10
1. Advertising.................................................................................................................................10
2. Internet or Interactive Marketing............................................................................................10
3. Sales Promotion.........................................................................................................................11
4. Exhibitions and Trade Shows...................................................................................................11
Media Schedule and Budgeting............................................................................................11
Evaluation and Control.........................................................................................................12
References...............................................................................................................................14

Executive Summary
The following report will go into all of certain plans and responsibilities as a Proton
Senior Manager of Marketing and Sales in Malaysia. The report will provide information on
how to market the Proton X50 in Malaysia, as well as a strategy that will be implemented, as
well as methods for dealing with the situation. Moreover, the report will go through the
situational analysis of the Proton X50, IMC objectives, segmentation, targeting, and
positioning, innovative approach, IMC methods, media schedule and budgeting, and
assessment and control.
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Situational Analysis
Strength Weaknesses
1. Proton is a Malaysian national
automobile manufacturer that is supported
by the Malaysian Government.
2. The price that Proton offers on its
products is very competitive.
1. Bad reputation for producing low-quality
cars.
2. Proton brand recall and market share are
significantly lower when compared to
global leaders.
Opportunity Threats
1. Advantages from the joint venture with
the international companies.
2. Research and Development that can be
created.
1. The automobile manufacturers are
experiencing lower sales as a result of the
macro-economic situation.
2. The competitors within the industry.
Strength
Proton strength point is that the company supported by Malaysian national automotive
company that has been required by the government to provide financial support for research
and development since its inception (Azhar & Teng, 2020). Every Proton car is tax-free since
it is manufactured locally in Malaysia and subsidized by the government. As a result, the
majority of Proton is significantly less expensive than the competition (Hans, 2020).
Weaknesses
Proton’s apparent flaw is that they have a bad reputation for producing low-quality
cars, which has been a problem for Proton for a long time (Mustadza, 2020). This occurred as
a result of the low-quality materials used to create their products to minimize manufacturing
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costs (Tan, 2019). Proton has been struggling to compete with other international brands due
to a lack of brand awareness and a market share that is considerably lower than the
competition. This occurred as a result of Proton’s limited advertisement in the overseas
countries, as well as its lack of emphasis and connections to grow any further.
Opportunity
Proton and China’s Zhejiang Geely Holdings Group Co Ltd have formed a joint
venture (Azhar & Teng, 2020). Proton’s joint venture has the ability to realize the full
potential of its development strategy. Furthermore, Proton may be able to penetrate the
Chinese market as a result of the relationship between the two firms. As a result of their
agreement, Proton will be able to use Geely’s technologies and R&D facilities. Proton will be
able to maximize and boost the company’s growth steadily with the aid of Geely’s
technology and R&D facilities, along with the output that needs to be improved and the
production benchmark.
Threats
Proton’s main threats are multinational automakers such as Honda and Toyota, rather
than domestic rivals (Kanyakumari, 2019). As opposed to Proton, Toyota and Honda offer
superior products, customer service, and brand awareness (Kanyakumari, 2019). It’s the fact
that both Honda and Toyota are more well-known in the global market and greatly outnumber
Proton in terms of success. It is a significant challenge to Proton because if the company does
not strive to match Toyota and Honda’s quality and services, it will lose its domestic market
competitive edge. Moreover, the low sales, which are occurring as a consequence of the
macroeconomic situation, are also considered a danger to Proton, as they would result in low
demand in the global market, resulting in low sales (MBA Skool Team, 2020).
Competitors Analyzing
Proton's major competitors are Honda and Toyota, all of which have advanced further
in technology, research, and development, brand awareness than Proton (Kanyakumari,
2019). In the case of SUV type among them, Honda HR-V is one of the most dominating in
Malaysia market right now compared to the Proton X50 (CARSIFU, 2019).
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IMC Objectives
1. Implemented Corporate Social Responsibility (CSR)
Proton may benefit from implementing CSR to increase customer satisfaction. As we
all know, Proton lacks a corporate social responsibility component when compared to its
Malaysian rivals, Honda and Toyota. As a result, Proton will place a strong emphasis on CSR
initiatives aimed at improving customer support to improve consumer perceptions of Proton.
Proton will dedicate a year to introducing comprehensive CSR systems to achieve the level of
CSR assistance in publicity, promotional, and public relations.
2. Generate Brand Awareness
Even though the Proton brand is well-known in Malaysia, increasing brand awareness
is critical. Proton needs to raise brand awareness within Proton’s target market. This is
necessary to place Proton as the first choice of consumers when they are ready to purchase a
car and to develop customer loyalty. Proton would need a channel to create brand recognition
to accomplish this. To raise brand recognition, Proton will need to use social media and
media marketing. Social media can affect up to 71% of customer purchasing decisions
(Barysevich, 2020). Proton will concentrate on increasing brand recognition over the span of
a year.
3. Concentrate on Promotions and Advertisement
To increase the selling of Proton vehicles, specifically the Proton X50, and to make
them more relevant to consumers. To compete with other SUVs of the same kind, such as the
Honda HR-V, Hyundai Kona, and Mazda CX-3, Protons must concentrate on marketing the
Proton X50 model. To compete with the other rivals, Proton would need to concentrate on a
one-year promotional campaign for the Proton X50 to be competitive and desired in the
Malaysian market.
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Segmentation, Targeting, and Positioning
When it comes to market segmentation that works well for Proton, the company
should focus more on demographic and geographic segmentation. In terms of demographic
segmentation, the Proton X50’s style, which is sporty and ideal for a family car because it is
an SUV, would appeal to a young adult between the ages of 20 and 35, as well as a middle-
aged person between the ages of 36 and 55. Due to the interior and exterior design that Proton
provides on Proton X50 models, those age groups would find the Proton X50 appealing. In
terms of regional segmentation, Proton should concentrate on urban and city centers such as
Kuala Lumpur and Putrajaya, where there is a higher target consumer shift due to higher
income than in other cities, making it easier to afford a car and more likely to travel by car
within the city. This sort of target market could be ideal for Proton IMC’s goals. Bear in mind
that, while segmenting and targeting the Proton X50 is important, Proton should not solely
concentrate on segregated targeting, but combining it with an undifferentiated business
strategy to be able to meet all of the IMC objectives. The Proton X50 is a sporty family-style,
so it should be able to position itself as the brand of choice for customers looking for an
affordable SUV with a great interior and exterior, great comfort, and high performance. It
should also be able to position itself as the brand of choice for customers looking for an
affordable SUV with a great interior and exterior, great comfort, and high performance.
Unique Selling Point
A unique selling point is an element that distinguishes a product from its market
rivals. It may be related to, among other factors, a lower price, higher quality, or an
innovative product. A product's unique selling point is important because it can make it
appear more attractive in the market than its rivals (Kumar, 2021).
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Figure 2: Price List of Proton X50 Competitors (Foong, 2020)
Proton will illustrate several specific selling points to entice the Malaysian audience.
The features of the Proton X50 would be the first unique selling point that Proton can use.
The Level 2 semi-autonomous driving features or advanced driver assistance system
represent features that the Proton X50 flagship type offer, that has not been provided with its
competitors (Lee, 2020).
The second unique characteristic of the Proton X50 is its lower price as compared to
its rivals. The Proton X50 costs between RM 79,200 and RM 103,300, whereas competitors
such as the Honda HR-V, Mazda CX-30, Hyundai Kona, and Subaru XV cost marginally
more, as shown in Figure 2. Figure 3 shows the major price differences between the lowest
and highest types, starting with the standard model at RM 79,200 on the road and ending with
the Proton flagship model at RM 103,300 on the road. As can be shown, even the most
expensive Proton X50 model is less expensive than its rivals. This pricing that Proton offers
for the X50 models may be a unique selling point that sets Proton apart from its rivals in
terms of price.
Last but not least, the performance of the car itself is a unique selling point that
Proton will highlight and distinguish Proton X50 from its rivals. In comparison to the Honda
HR-V and BMW X1, the Proton X50's flagship model has the best engine efficiency and
acceleration (Lee, 2020). The flagship version of the Proton X50 is powered by a 1.5L three-
cylinder turbo engine, while most cars are powered by four to six cylinders (Lee, 2020). This
engine was designed for the flagship Proton X50 to save costs and cut fuel efficiency while
remaining efficient and capable of winning a performance test in a drag race against a Honda
HR-V and a BMW X1. Proton will use this as a unique selling point to entice more customers
who value car results. These three elements of Proton's unique selling point can be used to
help advertising marketing and achieve the IMC goal of concentrating on the features,
competitive price, and engine efficiency of Proton X50 offers in the Malaysian market.
Creative Strategy and Justification
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In order to achieve Proton's IMC goals, an innovative strategy is needed. The Proton
X50 strategy will be focused on two types of promotional appeals which are rational
promotional appeal and emotional promotional appeal. Proton will begin doing promotion
and sales media campaigns to be able to draw buyers by showcasing the unique selling point
that Proton has, starting with the fair promotional appeal, which are the prices of the Proton
X50, which are significantly less costly, starting with the base model and moving to the
flagship model, as opposed to other rivals that charge more even for the base model. Besides,
the features and performance that the Proton X50 flagship model has and offers can be a
strong point in supporting the promotional marketing campaign and attracting a larger
audience in Malaysia. In terms of the emotional promotional appeal, as we all know, Proton
is a Malaysian car brand, and as such, most Malaysians feel a sense of pride and affiliation
towards it because it is the country's car manufacturer. As a national vehicle, Proton may take
advantage of this to boost the product's name.
Figure 3: Price List of Proton X50 variants (PROTON HOLDINGS BERHAD, 2021)
In terms of the execution strategy that Proton can use, they can use the comparative
technique to compare the advantage that Proton X50 has over its rivals. Proton will compare
and highlight the Proton X50 in terms of price, engine capacity, and features that the
competitors lack. Customers' buying decisions may be influenced by using a perfect way of
comparing with other rivals so they can determine what is fairer to select. Customers may
equate the engine performance of the Proton X50 to the Honda HR-V and BMW X1 to see
which engines were able to accelerate faster. This aspect alone will persuade customers that
the Proton X50 has a stronger and more powerful engine than other SUV brands, making the
Proton X50 more appealing to customers than other SUV brands.
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Aside from comparing the performance of the engine that the Proton X50 has, the
features that the Proton X50 has, such as the advanced driver assistance system that is
integrated into the Proton X50, can be compared to other SUV’s brands. This may be a point
of contrast, as rivals like the Honda HR-V and Mazda CX-3 have yet to offer this option.
Furthermore, with the price that Proton X50 offers, both the engine output and the features
that Proton X50 offers can be improved even more. When consumers are deciding whether or
not to buy something, the price is the most important factor. The Proton X50 is far more
economical than other SUVs, even for the flagship model, as shown in figure three. This
could make the Proton X50 more appealing in the eyes of consumers, as the Proton X50 is
the most affordable SUV car on the Malaysian market, and with the features and engines that
the Proton X50 offers, as well as the most SUV brand features that most of it already built-in
inside the Proton X50 that is much more affordable, the Proton X50 that is more affordable
can be the perfect choices for the consumer to compare and choose.
IMC Tools
Proton can use a variety of IMC tools, but to optimize performance, Proton will
choose the most efficient IMC tools that are best suited for achieving Proton's previously
mentioned IMC objectives. Proton's promotional marketing strategies will include
advertisement, internet or interactive marketing, sales promotion, and exhibitions and trade
shows.
1. Advertising
The most very common and most used tool for businesses to do marketing is
advertising. Proton is able to increase its brand awareness and attract the audience for Proton
X50 in the Malaysian market by using advertising. There are several ways of platforms or
channels that Proton able to promote the Proton X50 which are print advertising (newspaper,
magazines, brochure), broadcast advertising (television and radio), outdoor advertising
(billboard, banner, flags), digital advertising, and product or brand integration (Pahwa, 2021).
The implementation of advertising able to increase the relevance of the customers and
gaining new customers to trust the brands due to the popularity of the brand (Sama, 2019).
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2. Internet or Interactive Marketing
The use of the internet and digital marketing is also a way of increasing Proton brand
recognition and attracting consumer interest. It would include the internet and social media
channels to advertise the goods that Proton needs, which in this case is the Proton X50, to be
able to apply the internet or communicating marketing tools. The use of the internet and
social media sites to advertise the Proton X50 can be achieved for a long time and at a
relatively low cost as compared to other methods of promotion. Furthermore, users of the
internet and social media to promote X50 can enter a global market, since majority of people
in other countries can access the internet. As a result, Proton will use the internet and social
media to reach a particular market that is most interested in purchasing the Proton X50.
3. Sales Promotion
More future customers for Proton products can be gained with the use of sales
promotion methods. Sales promotion is a marketing technique that can be effective in
increasing Proton X50 sales numbers. These sales and promotions can be used to increase
Proton X50 sales during the early stages of the car's presentation. The best time to use this
sales marketing tool method is during the early stages of the car's launch when Proton can
provide accurate details, a better price deal, comparisons with other SUV brands, and build
the customer's view of the Proton X50 into a justification to buy the car. Customers need to
know what they are getting for the price that has been offered to them as they are about to
allocate their hard-earned money, so sales and promotions can be beneficial.
4. Exhibitions and Trade Shows
Proton will use this exhibition and trade show tool to market the Proton X50 by
having a car exhibition that puts the Proton X50 in the spotlight and makes it appealing to
buyers. The benefit of using an exhibition to advertise the Proton X50 is that it allows for
more personal advertising because of the direct contact between consumers and promoters,
allowing for a greater understanding of the Proton X50 and comparisons with other SUV
brands. It is easier to close business during exhibitions than it is during other types of
advertisement such as email advertising and others (EMC Advertising Gifts, 2018). The fact
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that exhibitions can catch the full attention of consumers with fewer distractions is one of the
reasons why they are so much easier to close deals with (EMC Advertising Gifts, 2018).
Media Schedule and Budgeting
In the first three months, the marketing scheme for promoting the Proton X50 will
concentrate on advertisements through broadcast and outdoor media. Along with the
broadcasting and outdoor ads, there will be an exhibition to round out the marketing
campaign, which will take place during the first four months, and a promotional promotion
that will give a discount to increase the Talking about the budgeting, the car exhibition will
cost RM 350,000, the advertisement for both broadcast and outdoor advertising will cost RM
900,000, internet and social media advertising will cost RM 450,000, and the discount
campaign will cost RM 300,000 that will be repeated in November and December to maintain
those sales going. Finally, internet and social media advertising will be conducted during a
full year, to maintain brand recognition.
Evaluation and Control
When it comes to evaluating Proton, the first step is to assess the marketing strategy
and how it is going. Proton's marketing strategy for the Proton X50 was implemented in
every way possible, and the assessment of the marketing plan would contribute to the IMC
goals of Proton by analyzing both quantitative statistics of Proton sales success and gathering
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information on the return on investment of Proton's marketing plan for the Proton X50 and
the qualitative assessment will be conducted by gathering input from customers through
surveys, customer service feedback, and other means. From there, Proton will gain
knowledge and put it into practice by observing and testing whether the marketing technique
that has been introduced is working well or not.
In terms of control, it's important to use budgeting to keep track of any cost. Proton
may select which forms of advertisements are more successful and focus on that type of
advertising campaign to spend more and which to tone down based on the knowledge
obtained from the assessment on the efficacy of advertisement marketing that has been
implemented. Moreover, Proton will keep a close eye on advertising costs to avoid
overspending on advertising and increase revenue. This intervention would help to sustain the
budget, which is two million dollars and to increase the efficiency of each expenditure.
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References
Azhar, K. & Teng, L. J., 2020. Cover Story: Government support needed for development of
new-energy vehicles. [Online]
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[Accessed 15 05 2021].
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CX-3, X1, and Kona?. [Online]
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Available at: https://www.wapcar.my/news/0100-in-79-seconds-how-the-2020-proton-x50-
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[Accessed 14 05 2021].
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[Online]
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taxfree-honda-hrv-7508
[Accessed 15 05 2021].
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[Accessed 15 05 2021].
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[Accessed 14 05 2021].
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[Accessed 15 05 2021].
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PROTON HOLDINGS BERHAD, 2021. PROTON X50 INTELLIGENCE THAT AMAZES.
[Online]
Available at: https://www.proton.com/en/find-a-car/protonx50
[Accessed 14 05 2021].
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[Accessed 15 05 2021].
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[Accessed 15 05 2021].
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benchmark level now. [Online]
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[Accessed 15 05 2021].
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