THE SUCCESSFUL OF PERODUA IN PRICING STRATEGIES

FEATURING: DESIGN FOR FAMILIES AND INDIVIDUALS LOOKING FOR
A PREMIUM CAR AT AFFORDABLE PRICE








































































P E R O D U A











BUILDING CARS PEOPLE CHOICE





FIRST BRAND CUSTOMERS CHOICE IN

MALAYSIA

CONTENTS










1.SMART PRICING

AXIA ( FROM RM24,090)


2. PRICE STRATEGIES

Skimming

strategy


Value based

strategy


Price ARUZ ( FROM RM72,900)

segmentation





3. PROTON BEEN


ABLE MIMIC

PERODUA'S MYVI ( FROM RM42,790)


SUCCESS




4. PRICE SELLER OF


GOLDS CAN DRAW

PERODUA'S


COMPANY BEZZA( FROM RM34,580)

STRATEGIES





5. NISSAN SHOULD


FOLLOW SMART

PRICING BY


PERODUA
ALZA ( FROM RM51,490)

S According to car sales by brand Malaysia 2019, Perodua is the

number one in the top brand Malaysia chooses by customers
(J.Muller 2019). This statistic represents the number of passenger
M vehicles sold to customers in Malaysia in 2019, broken down by


major brand.
A The Malaysian car manufacturer Perodua sold approximately

240 thousand cars followed by Proton and Honda around 100
R thousands and 80 thousands respectively. Moreover, this situation

make Perodua realize the customers more prefer to their brands
therefore Perodua strive to develop more design for families and
T individuals looking for a premium car at affordable price such as


Myvi and Aruz. (Pride.et.al, 2007).
P Perusahaan Automobile  Kedua Sdn. Bhd. ( Perodua) was



established in 1933 and it also have collaboration with others
R collaborations to give the Perodua brands can have standard quality
imported car which is Japanense Automaker Daihatsu. These


I as well as imported car. For supported this statement, Perodua

apply the different price strategies as well as to recover cost of
C development in producing the new stylish model and vehicle with
hybrid engine by adopt skimming , value-based and price

segmentation strategies.
I Through this price strategies, Perodua are smart playing with their




N price as to make sure the demand constantly and sales revenue
increase year by year. Based on this situation, it also helps the
Perodua to be one of the successful brands as the second
G automobile manufacturer in Malaysia followed by another brand,


Proton.































PAGE 1

Skimming price strategy adapts by Perodua as introduce new model with a WHAT ARE
high price and the manufacturer of Perodua sends a message to their loyalty
consumers to ensure that customers tend to buy their product. Nevertheless,
the price drops, Perodua believe people will continue to associate these values THE PRICE
with the product and creating a steady demand for it. This is also helps Perodua
build a high quality image and perception of the product as mentioned in their STRATEGIES
objectives too. As we can see year by year, Perodua frequently introduce their
new model for their customers as they believed Perodua as the maker of
Malaysia's favourite compact vehicles offering various products and services IMPLEMENT
designed to suit customer’s lifestyles ( Perodua profile) .
BY

Perodua establish price skimming strategies as well as to recover cost of
development in producing the product plus roles as it is the one of the PERODUA?
automobile Company in Malaysia with the highest sales of Hybrid cars. Thus,
Perodua offer the price a little bit higher compared to their closest competitor,
Proton because Perodua enhance the quality of their automobile cars to satisfy
customers’ needs. Indirectly, there is the higher demand for small cars in
Malaysia and others several foreign countries such as United Kingdom,
Singapore, Brunei, Fiji, Nepal, Mauritius and Sri Lanka. (J. Muller 2020).

Perodua also believe that they have loyalty customers which the customers
willing to pay high price meanwhile the demand also high and competition has
not entered the market. Therefore, Perodua get this opportunity to produce new
stylish modern car and upgrade their product such as introduce new model Myvi
and also new brand car, Aruz.



PRICE SKIMMING
PAGE 2

VALUE BASED





The price Perodua has set is ‘based on buyers’ perceptions
of the value rather than on their costs (Kotler et al.1994).
To support this statement, Perodua are more targeted their
audience which is people in middle class and low class. The
Valued-Based pricing strategy are very effective and
towards Perodua as they offer the additional features with
the affordable price to their customers. For instance, as
stated by said Perodua President and chief executive
officer Datuk Aminar Rashid Salleh , Perodua has marketed i
the Myvi as well as this model car is give value for money
car in the year (Yuan. C 2015) at a reasonable price, Perodua use price segmentation as Perodua apply concept the
comparable to other vehicles sold to a similar target different customer have different price with the same product
audience. towards several foreign country. For instance situation, Perodua has
launced their new Myvi which the third-generation with 1.3X AT and
1.5H AT, priced at S$64,800 (RM197,093) and S$69,800 (RM212,301)
Besides that, The Myvi pricing has an advantage over respectively, inclusive of GST and the country’s mandatory
comparable vehicles due to its environmental benefits and Certificate of Entitlement (COE) compared to at the Malaysia the
price is lower than that.
fuel cost savings. The Myvi price level is in effect a pricing
strategy as consumers often associate a higher price with In this price strategy may encourage Perodua to develop more
higher quality. The price difference between the Myvi and small cars as demand at others countries also higher indirectly
its competitor the Proton hybrid will ensure that the Myvi Perodua will get higher profit from that. Perodua currently exports
the Myvi to Indonesia, the car being badges as the Daihatsu Sirion
sits as the premium product in the hybrid vehicle market. there. In addition, Perodua tend to exports to the republic for the
The positioning is also help to increase brand awareness of first half of the year increased by 72% compared to the same period
Perodua in the Malaysia market place, rather than its last year, with 1,030 units being sent over, and the forecast is that
the market will account for 2,170 units out of the total export
competitors, Proton, which has now labelled itself as a volume. (Anthony Lim, 2019). Perodua exports to Sri Lanka have also
lower quality brand in hybrid vehicles. increased, with 344 vehicles delivered in the first half of 2019, up
from the 212 during the same period last year. The numbers also
improved in Brunei and Singapore, the latter undoubtedly helped by
the introduction of the Myvi in April, with two variants of the
hatchback available in the republic.

Based on this matter, when Perodua export their vehicles to foreign
countries automatically they will offer the different prices as much
higher than in Malaysia, therefore, Perodua can have higher profit.
As stated by president Perodua and CEO Datuk Zainal Abidin Ahmad,
their exports remained modest which are making good progress in
establishing their brand overseas and are looking at further
improving the numbers this year. The different countries have
different price offer based on the country’s mandatory Certificate of
Entitlement (COE) under country respectively.
PRICE


SEGMENTATION





SUCCESSFUL PERODUA





IN PRICING





STRATEGIES





PAGE 3

Perodua cars sales volume in Malaysia from
2012-2019



Perodua sold more than 240 thousand
vehicles in 2019, the highest annual sales
figure the company has ever recorded. Sales
of Perodua vehicles rose in 2019 and
continue by continued strong demand for
all its models, namely the Alza, Aruz, Bezza,
Axia and Myvi. In the same year, Perodua
held the largest market share in Malaysia,
accounting for approximately 43.7 percent
of total passenger car sales.








Perodua’s registration for 2019 was
higher 5.3% units and 13.1k units when
compared to forecast of 235.0k units and
the same period last year of 227.2k units
respectively.
Perodua’s market share for 2019 was at

40% same as forecast and higher by 2%
when compared to the same period last
year of 38.0%












































Sources:
local news, 2020 (Perodua sold record 240,341 cars in 2019, 40% market share –
Myvi remains best seller, flat target for 2020)
PAGE 4

The introduction of Proton by 1983 as well as they offer
affordable and reasonable price especially to Malaysian people who
are in the middle class. In contrast, Perodua’s objective also wants to
offer more affordable price and make more comfortable car
according to the Industrial Master Plan (IMP) to customers.
Regarding on this matter, Perodua accomplish their goal as to
provide cars which are small, compact, affordable and of high quality
for individuals and families as stated by Dato’ Syed Hafiz, Managing
Director of Perodua.


Perodua also believe compact cars are a hit with customers
because they are convenient. This is evident with the Kancil, which
has sold over 700,000 units in the past 15 years which The Kancil
was phased out in July with company efforts shifting towards newer WHY PROTON
products such as the Myvi become valuable car towards Perodua
right now. Myvi is the brand of Perodua which remain best seller BEEN ABLE TO
(Local News, 2020) as representative model car give the good impact
for successful Perodua.
MIMIC
The reasons Proton able successful like Perodua because Proton
realize most of the customers are more prefer vehicle with hybrid. PERODUA'S
The collaboration between Perodua and Daihatsu, one of the top car
manufacturers in Japan also helps Perodua's company to run more SUCCESS?
smoothly meanwhile Proton also vendors to collaborate with Chinese
companies for X70 production. In that way, this collaboration with
others foreign company may help to enhance the quality of the cars
brand in Malaysia's market.

Therefore, Proton is the closest competitors towards Perodua as
their mission and vision plus the price strategies almost same . This
is important for this two brand of automobile car in Malaysia could
be compete in the right way as their objective to fulfill customers
needs.






Sources from Purva Jain on Jan 15, 2020 for Perodua Bezza 2020

































PAGE 5

PRICE SELLER OF GOLDS CAN DRAW

PERODUA'S COMPANY STRATEGIES








Without we realize, the price of gold also implement skimming
price strategies in their business. The gold is play an important physical

product to customers as they can invest it when there is uncertainty
time which may help them as an alternative form of savings when
confidence in the local currency is low. The price of gold in Malaysia has

rose up since the beginning of 2019 as investors look to safe havens
from looming economic uncertainty. (Gazi, The Price Of Gold In

Malaysia And What Affects It, 2020)
















The seller sets the initial price in higher price due to many of
customers who tend to purchase the gold as it is importance as a
raw material in the manufacture of electronics  and it leads to higher

demand when the economy is soaring as well. Besides that, the price

will be going down if gold miners produce an excess of gold relative
to demand and also due to the laws of economics. (Mcfarlane, When

and Why Do Gold Prices Plummet?, 2020)














To conclude, skimming price strategy is the best of price strategy

as people still buy even though the price was setting in higher price

due to they want to achieve as the “early adopter” who are wiling
pay a higher price to have the latest or best product in the market as

well as mentioned before. To add on, the price seller of gold can be
draw as Perodua's company successful in price strategies well as the

gold is one of the more popular places to park investments for
customers.
PAGE 6

Price strategies are plays important roles in business because it will
generates revenue and profit to the company. Therefore, the successful of
company depends on how manager implement their price strategies toward
market. In the world of automobile industry, Nissan is one of successful
company and also is the closest competitors towards Perodua besides Proton
in Malaysia. In addition, Maybank IB expects Perodua to continue to retain
market leadership and anticipated Proton as well as Nissan marques to gain
some market share. (Bernama, 2020)
PERODUA In Malaysia’s market, the automotive companies compete to give more
reasonable and affordable prices to their customers. Therefore, Nissan
implement cost based pricing as they aimed to sell at a lower price compared
with other competitors in order to obtain a bigger market share (Nissan
VS Motor Corporation, 2015) meanwhile Perodua apply price skimming
strategies which they sets in higher price as to recover the cost of
manufacturing of vehicle for maximize customer satisfaction. Besides that,
when Nissan decide apply cost based pricing in their business because they
NISSAN believe the main pros of cost-based pricing is the price will be lower. Perodua
implement value based pricing because they offer the additional features with
the affordable price to their customer are based on buyer perceptions.

To conclude, price strategies on Nissan are not really relevant to adapt if
they want to gain more profit in the Malaysia’s market. This is due to there
are many cons by implement cost based in market area. It is look like the
Nissan does not really more concern on capital requirement and return on
investment meanwhile Perodua use skimming strategies due to recover the
production of manufacturing indirectly can gain more profit on it compare
to others brand cars. thus, Perodua strive to motivate their organization could
have the same level as the other imported car in this world.



























Source: Perodua.com.my
























Source: New Nissan.com.tw
PAGE 7

SUMMARISE ABOUT




PERODUA





Most of people believe with the ability of Perodua as

the number one automobile car in Malaysia.

Customers also give their all trust and loyalty toward

on this brand. To add on this statement, the price
strategies implements by Perodua make customers

affordable to purchase it as well as the price offer by

Perodua is reasonable and affordable for their

potential customers.




Therefore, price strategies is main role important in

the company because it helps them to gain more

revenue and profit. In that way, Perodua smart while

plays in price strategies for their company indirectly

until now the number of sale by Perodua

are increasing in year by year.



Last but not least, Perodua has prove to world and

others automobile brand car that this company able to

achieve their successful until now by supported in

smart choices while using price strategies .
























PAGE 7

REFERENCES









Appadurray, A. (2017, MAY 22). Perodua
Myvi production to hit one million units this

month. Retrieved JUNE 7, 2020,from
https://www.theedgemarkets.com/article/pe

rodua-myvi-production-hit-one-million-units-
month



Gazi, F. (2020, March 5). The Price Of Gold

InMalaysia And What Affects It. Retrieved May
16, 2020, from

https://www.imoney.my/articles/gold-price-
malaysia:



LEE, J. (2020, JANUARY 21). Perodua sold
record 240,341 cars in 2019, 40% market
REFERENCE
share – Myvi remainsbestseller, flat target for
2020. Retrieved JUNE 7, 2020, from

https://paultan.org/2020/01/21/perodua-
sold-record-240341-cars-in-2019-40-market-

share-myvi-remains-bestseller-flat-target-for-
2020/



Mcfarlane, G. (2020, April 18). When and Why
Do Gold Prices Plummet? Retrieved May 16,

2020, from When and Why Do GoldPrices
Plummet?:https://www.investopedia.com/art

icles/investing/071414/when-and-why-do-
gold-prices-plummet.asp





MULLER, J. (2020, FEBUARY 3). Passenger car

sales in Malaysia in 2019, by brand. Retrieved
JUNE 7, 2020, from

https://www.statista.com/statistics/516276/
passenger-vehicle-sales-in-malaysia-by-

brand/

MALAYSIA'S BRAND AUTOMOBILE



















































CREATE BY NUR FAZIRA AZMAN