Proposed your promotional mix strategies for the new country of your choice. Identify whether there is any adaptation required for your promotional strategies comparing with current domestic strategies. If no adaptation is required, provide your justification.

1. Marketing/Promotion Strategies
The different marketing mix strategies, which Perodua companies can consider, are given below,
along with rationale for my recommendations. This can be supported by various promotions and
pricing strategies.
 Product
Enter With The Most Acceptable Models.
It is safer to enter with the most acceptable products in the market which right now, are the
compacts or small cars. Other models such as sporty ones can be introduced later on as the
market mature and the companies have got a foothold in the market. The companies can
experiment by offering basic models without metallic paint and accessories, as this would lower
the price to a large extent. It should work to come out with a sub-compact at competitive pricing
for Indonesia market as this segment is the biggest. Perodua can target the lucrative small car
segment with the kancil. It can be quite competitive if it is assembled in Indonesia with local
content, thus lowering the price.
Product Modifications
Cars have to be adapted to Indonesian condition although the basic structure can be retained.
Important parameters to be considered in this regards include :
a) Suspension and Ground Clearance
Many of the Indonesian roads are in a bad condition especially outskirts of town and it is
necessary to have a good and strong suspension. Ground clearance should be higher as compared
to Malaysia. A clearing height of at least 20cm is necessary.
b) Engine
Except in the big cities, many petrol pump all over Indonesia do not have unleaded petrol. High
cc engines means higher petrol consumption and I fell Perodua should not introduce the higher
cc cars initially as the Indonesian consumers like fuel efficient cars. The engine has to conform
to the EURO II regulation in order to sell in the National, which is the biggest in the market.
(Pasquale, 2009)

2. c) Body
Introduce a acre with big boot space and four doors. If people can afford it, they would rather go
for a big car because Indonesia families are usually big. There is only a small market for sporty
cars like Satria, maybe because of the price factor. Safety is another important factor in the
minds of customers. Perodua must take precautions to avoid being typecast as makers of unsafe
cars. Safety features such as seat belts, crumble zones, sidebars, etc should be made standard and
publisised.
 Promotion
Promotion is communication by marketers that informs, persuades and reminds potential buyers
of a product in order to influence an opinion or to get a response. While inform is a
communication used to increase understanding of new brand, or a new product. The company
explain how the products function, and recommend the new application for product. The other
goals of promotion, persuade the customer to buy now. Finally, remind is a task of retaining the
customer knowledge and to call attention to the customers about the importance of the products
for they might be used in the future (Pride.et.al, 2007).
The promotion goal of Perodua Company in the Perodua product in Indonesia is inform. Perodua
is still the good selling product in the market. It is convenient and suitable for businessman but
also good for small family. In addition, Perodua Company gave information about the Perodua to
society by using several methods, such as brochures, internet advertising through Perodua
official websites, road show and many more (Pride.et.al, 2007).
Promotion Tools
To communicate with individuals, groups and organizations in Indonesia, various promotional
tactics have been used by Perodua. When Perodua merges specific plans used to manage the
integrated marketing communications for Perodua, that combinations form the promotion mix
for Perodua. Advertisement, personal selling and sales promotion some of the elements of
promotion mix. (Dolak,D 2009)

3. The main promotion mix used by Perodua in promoting Perodua is advertisement.
Advertisement is the activity of attracting public attention to a product or business, as by paid
announcements in the print, broadcast, or electronic media (advertising, 2010). Advertisements
used by Perodua are television, the internet, newspapers and prints. The benefit of using
advertisement is that it can cover a wide range of audience but is very costly.
Personal selling is defined as oral communication with potential buyers of a product with the
intention of making a sale. The advantage of this that it can influence the customer more
compare to advertisement. The disadvantage is that it depends on the attitude and the skilfulness
of the salesperson to convince the customer. Perodua is sold through direct selling which is face-
to-face by using a sales person. The sales person who does not directly work for the company
mostly can lower the price of Perodua to attract customers. This is because they can deduct the
price using their commission. While buying from salesperson at the showroom is more
convenient as everything is handled by them and also the quality of the service is much better.
Sales promotion refers to many kinds of incentives and techniques directed towards consumers
and traders with the intention to produce immediate or short-term sales effects (Definition of
Sales Promotion, 2010). Perodua have created many sales promotions to aid in the sales of
Perodua such as the scrapping programme. This promotion allows customers to trade-in their old
car for a reduction of RM5000 off any Perodua cars.
Communication Process
The communication process is a process whereby the sender is marketing their product to the
receiver who is the public and except some feedback from them. Interference in this process
which prevents the message being conveyed to the receiver is called noise. (Mary Ellen, 2014).
One of the noises that can affect Perodua promotion is competitor's message. Other automobile
companies will also have their own promotions to attract customers. They will always try to
convince the customers in believing that their product is better than the rest. When Perodua
creates promotion, they have to compete with promotions made by the other car companies for
example Proton with their car, the Proton Saga. This can cause some of the Perodua’s customers

4. who are convinced by Proton Saga's promotion to instead opt for Proton Saga. The marketer will
always try to convince the customers in believing that their product is better than the rest.
The distraction occurs when the advertisement being played is also one of the noises affecting
Perodua's promotion. When the commercial is aired, the customers might be having a
conversation or preparing a meal. They will not be able to pay attention and understand the
message being conveyed by Perodua.
Pricing
The companies should follow a competitive pricing strategy, as they are new entrants to
Indonesian market and may have to subsidise prices in the beginning. This is because the
Indonesian car market is extremely price sensitive. Profit making should not be the objective in
the beginning but market share.

5. References
1. Olujimi, K (2014) Marketing Communication. Bookboon.
2. Society of Automotive Engineers, (1999) Electric and Hybrid Electric Vehicles and Fuel Cell
Technology. Society of Automotive Engineers : Warrndale, PA.
3. Dow, J (1998) Articles and Journal on Motor Vehicles, GST, Import, Sales, Production,
Hybrid and Technological.
4. Walker, I (2000) , Marketing Theory And Practice. Lecture, Monash University, Malaysia.

6. References
1. Olujimi, K (2014) Marketing Communication. Bookboon.
2. Society of Automotive Engineers, (1999) Electric and Hybrid Electric Vehicles and Fuel Cell
Technology. Society of Automotive Engineers : Warrndale, PA.
3. Dow, J (1998) Articles and Journal on Motor Vehicles, GST, Import, Sales, Production,
Hybrid and Technological.
4. Walker, I (2000) , Marketing Theory And Practice. Lecture, Monash University, Malaysia.