Perodua, also known as the Perusahaan Otomobil Kedua Sendirian Berhad (English: Second Automobile Manufacturer Private Limited), is Malaysia’s second largest automobile manufacturer after Proton. It was established in 1992 mainly producing minicars and superminis and therefore does not actually directly compete with Proton. The mission of Perodua is to be a world class automobile company renowned for excellent quality and reliability through: • Professionalism in all operations Efficiency in utilizing technologies and available resources • Optimising benefits to customers and stakeholders • Dedication towards social responsibility to community and environment • Uniqueness in our products Thus, this essay will define how Perodua positions its product in the market. Market Segmentation Market segmentation is referred to the process by which marketers “understand” a market, having collected and then analysed several variables using sophisticated multi-variate techniques.

Using this understanding, they divide a market into distinct groups in the belief that developing different offerings for some or all of these groups will increase profitability. (Janet Hoek, 1996) The bases for segmentation are the geographic, demographic, psychographic and behavioural segmentation. Perodua’s market segment profiles are as of the follow: Segmentations |Tertiary students |Secular working babies |Career achievers |Retired adults | |Geographic |Malaysia |Malaysia |Malaysia |Malaysia | |Demographic: | | | | | |Age |17-24 |25-35 |36-54 |55 years | |Income |Parental support |Monthly income from jobs |Established career and earning a |Retirement funds or pensions | | | |earning a low to high income |medium to high income | | | | | | | | | | |University graduates | | | | | | | | | | |College and university students | | | | | | | | | | |Education | | | | | | | |Clerks, government workers etc. | | | | |Students | | | | | | | |Businessman, Engineers, etc. | | | | | | |Retired | | | | | | |Occupation | | | | | |Psychographic: personality|Ambitious |Busy |Dominant |Laid-back | | |Adventurous |Responsible |Experienced |Practical | | |Dynamic |Versatile |Composed |Safety conscious | | |Outspoken |Financial conscious |Image conscious | | |Behavioural : usage rate |Medium |Heavy |Light |Light | Target Marketing A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy. (Aaker, J. ,Brumbaugh, A, and Grier, S. , 2000) The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace. (Lawrence Erlbaum, 2000) Thus, the target market of Perodua is the ‘Secular Working Babies’ segment.

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The company targets this particular segment because this segment consists of fresh graduates that are beginning their careers with a low monthly income thus making them incapable of buying luxurious cars. This means they are more financial conscious so they would go for a car that is affordable but also economical due to the growing modernized culture and education. To travel efficiently with a low expense rate, Perodua provides them the best choice. In line with Perodua’s 333 Vision which is aimed at total customer satisfaction, cost reduction and increased market share, targeting this market segment will be most profitable. Values sought by “Secular Working Babies” • Price must be cheap and affordable • Fuel efficient (economical) • Air conditioned • Good performance of car for smooth travelling Personal safety via airbags and anti braking systems Perceptual map [pic] This perceptual map shows the various car companies providing the customers with high quality and expensive cars. Thus, the customers who do not possess buying power to purchase these luxurious cars will have to buy a product which is cheap and low quality. As Proton was the first local automobile car manufacturer, it catered greatly to our targeted segment. Due to tight financial budget experienced by the targeted segment and even the growing interest of quality among students due to culture and education, this segment now wants a high quality and cheap car to satisfy their needs.

This creates a gap in the market as competitors in the market are mostly able to provide high quality cars but are unable to provide the low affordable price that students can afford. Therefore, Perodua has decided to fill this gap in the market by providing high quality cars at cheap affordable prices to attract and satisfy the targeted segment. Position Marketing Positioning is a game people play in today’s me-too market place. In which the case is made that the typical consumer is overwhelmed with unwanted advertising, and has a natural tendency to discard all information that does not immediately find a comfortable (and empty) slot in the consumers mind. (Jack Trout, 1961) However, the definition was redefined into “an organized system for finding a window in the mind.

It is based on the concept that communication can only take place at the right time and under the right circumstances”. (Al Ries and Jack Trout, 1981) In position marketing, companies usually differentiate themselves via product, services, personnel or image. The following table shows the differentiation of product, services, personnel and image of Perodua Myvi. |Product |Perodua Myvi offers a range of cars such as Myvi (1300 cc), Myvi SE, Myvi Extreme, | | |Perodua Myvi offers their products which are fuel efficient and affordable price | |Services |Maintenance service packages (from 1,000km till 100,000km). | |Part replacement and repair | | |Accident repair & body repair | | |Front & Rear Brake Service | | |Insurance & road tax renewal | |Personnel |Employees are informative and attentive towards their customers’ needs and wants | | |Employees are professional in their sales | | |Dedicated towards social responsibility to community and environment | |Image |Perodua Myvi positions itself as fuel efficient and affordable cars in the minds of their market segments | Marketing Mix The table below depicts the marketing mix of Perodua Myvi aimed to fill up the gap in the market. |Price |Prices for the Perodua Myvi (1300 cc) -manual comes at a RM43,900 while Myvi (1300 cc) –automatic comes at a | | |RM46,900 | |Product |The high performance 1. L DVVT, DOHC with EFI engine delivers excellent fuel economy, smooth pick-up and | | |acceleration | | |Adjustable seat belt anchors | | |SRS airbags | | |ABS (Anti-Lock Braking System) | | |Anti-theft system to keep intruders away via immobiliser and alarm | | |Come in different colours : mystical purple, medallion grey | |Place |Perodua has showrooms and services centres located throughout Peninsular Malaysia.

For example, in Wilayah | | |Persekutuan Kuala Lumpur, there are companies which are Perodua Sales Bhd. Sdn. (Putrajaya) and UB Automobile | | |Sdn. Bhd. etc. | |Promotional |Perodua provides seasonal discounts to buy their products | | |Television, radio and newspaper advertisements | | |Free gifts such as full tank petrol and 3 years warranty | |People |Professional, informative, attentive and edicated | |Process |Visit a Perodua showroom and get free consultation from the sales person, and a free test drive of the car of | | |your choice and if satisfied, make the purchase deal | |Physical evidence |Spacious seats | | |Audio system | | |Air conditioning | | |Perodua Website | | |Perodua Showrooms | Conclusion:

Perodua has positioned itself as a commodity that provides high quality cars at cheap affordable prices. And in a modern society where achieving financial stability has become a challenge to all, Perodua has able to differentiate its product and services by emphasising on cheap affordable prices that provides high quality which separates itself from its competitors which provides high quality cars but at expensive prices. Since the target market is ‘Secular Working Babies’, Perodua should look into providing services such as an in-built GPS system which will enable the target segment to identify roads and travel more efficiently if their jobs require so.

Besides, Perodua should also provide the services of an in-built Wi-Fi system in the car so that the target market is able to check their emails wherever they are, thus saving their time searching for a Wi-Fi outlet. (1124 words) References: Brumbaugh, A. J, & Grier, S. (2000). Non-target Markets and Viewer Distinctiveness: The Impact of Target Marketing on Advertising. Journal of Consumer Psychology (Lawrence Erlbaum Associates), 9(3), 127 Al Ries and Jack Trout, bestseller book “Positioning – The Battle for Your Mind. ” (McGraw-Hill 1981) Hoek, J. A. (1996) Journal of Marketing Practice: Applied Marketing Science, 2 (1), 25-34. Jack Trout (“Industrial Marketing” Magazine- June/1969) Perodua, (2011), Retrieved October 21, 2011 http://www. perodua. com. my/