Proton Holdings Berhad was using Mitsubishi engineering for its car manufacturing which is thought to be very effective cause in company’s loss of market shares.
This obligation is results in increasing sales and profits of 2008 in comparison of last 5 years. Some of the main features of the Proton Saga used by the company to improve its product, added features to improve its marketing and marketing mix strategies to reposition the product of Saga in its life cycle.
In product by Product life cycle our product Proton Saga as whole starting its life since 1983 was previously lying in the maturity stage and company was continuously trying to improve its sales but was not able to do so. To give the existing strategies, below are different features of marketing mix that we discussed.
We will discuss the overall strategies of the organization for its Product feature. Proton Saga as was launched in different generations but company was continuously loosing its brand name after entrance of many automotive organizations in Malaysian automotive market as whole.
This also affected its Proton Saga and the sales were continuously going down. To cover this gap Company made a try and launched Proton Wira as a replacement of Proton Saga but this effort was also not successful and company in 2007 went in loss in terms of earnings per share of (107.3%) which are very much for an automotive industry and the reason also cannot be some else because an automotive industry always require a lot of capital to run.
This launching of Proton Wira was the Co-branding strategy of company which fail when company made losses and to regain the market position company thought for Re-branding of the product which was only possible if all the features were changed in production of new Proton Saga in 2008. Also this was very much important to repositioning of the product. For this re-branding and repositioning of Proton Saga company completed changed the engineering services of the company and went for Lotus engineering which had completely different features and this effort succeeded for this year where the sales of the company increased from 4,687.3 millions in 2007 to 5,621.6 millions in 2008. Also to increase sales company is exporting this car internationally in UK, Australia and other related left hand markets.
This also increased company sales on whole. But this is more concerned to increase sales and not much to re-branding and re-positioning of the product. Therefore we can say company is working on the strategy of Re-branding and also re-positioning of Proton Saga and which it did by Proton Saga model 2008. With this Company also have added some new engineering in Proton Saga for improvement of its quality, Style and Status which is organization’s marketing strategy as well. Also Proton have followed the mass market or combined market strategy by providing different ranges of B-line, M-line and N-line products of Proton Saga model 2008 which differ with respect to the fuel consumption. This difference is provided looking on different ranges of customers in the market.