Market Segmentation (Proton)
Market Segmentation (Proton)
Market segmentation is a marketing strategy that involves a large segmentation then the
company itself divided into a several segmentation to target their customers to have common
need and wants. It is used to identify their potential customers and provide supporting data for
positioning to achieve their objective of the marketing of the company. PROTON divides into a
several factors of segmentation which are behavioral factors, demographic factors and
psychographic factors.
Behavioral factors
It is means that the segmentation divides the customers into groups according to their
knowledge, the attitudes towards the products, usage rate or the response of the consumers
towards the products. PROTON has been targeting consumers who came from the different
background status with different model of cars respectively because of that PROTON offer
variety of model that the customers can choose that can suite the customers preferences. They
are focusing for consumers who are brand loyalty and brand sought. PROTON wants to build up
the brand loyalty towards their customers so that they come out with the MPV cars which are
PROTON Exora to others. Besides that, Suprima, Iriz, Preve, Inspira, Saga FLX, Satria Neo
also the new models of the Proton cars to attract their existing customers and potential
customers.
Consumers who are loyal to PROTON will tend to accept the new car innovations by PROTON
and may choose to attach themselves with PROTON by joining the membership clubs to gain
more information. Hence, the new Proton car innovations would tend to be accepted by
consumers with strong brand loyalty towards Proton car.
Demographic factors
It is means that segmentation according to demography is based on several factors such as
age, gender, occupation and education level, and the perceived benefits which a product or
services that the PROTON may provide. The benefits may be different to the every individual
depending on the customer stage in the life cycle.
The example of the potential consumers for the new Proton Exora can be targeted by analyzing
the demographic factors. In the case of Proton Holdings Berhad (Proton), they are focusing on
factors such as income, age, sex, race and family when identifying the target audience. Proton
is targeting consumers who has family member with size of 3 to 6 members at competitive and
affordable price. Their age are ranging from 25 years onwards with family size of 3 to 6
members. In order to own a Proton Exora, the consumers relatively have a monthly income of
RM2, 000 and above and provide for the consumer preferences for all races. Proton Exora is a
new lifestyle family vehicle, which combines advanced styling, spacious interior, which
accommodates 7 adults and has multiple usage, high quality design and good performance with
emphasis on the value for money factor.
Another example of the proton cars is Iriz the company targeted by analyzing the demographic
factors, they are focusing on factors of the middle income of the customers and the compact
cars more suitable for the ladies in terms of the gender and the range of the age of the
consumers is 18 years until 40 years old. The Iriz models look sportier and the teenagers will
attract to buy this kind of models.
Psychographics factors
Psychographics factors mean that the segmentation based on the lifestyle of the customers.
This is including the attitude of the customers towards life, careers, possessions, social issues
or political institutions (Keller, 2008) in Malaysia. PROTON's entry into the local automobile
market in 1985 has resulted in massive structural changes in the automotive industry, which
was reflected in the shift of the domestic car market, which previously depended on imported
cars particularly Japanese makes. Therefore, the intention and objectives of PROTON
investment in the automotive industry could influence the purchasing power of consumers who
are patriotic to the country by buying a national car.
Furthermore, PROTON has not only produced cars for the local consumers but has broadens
the automotive industry to local and international. For example of the Proton cars is Exora as we
know, the export market for Proton Exora will be a substantial key for PROTON to achieve its
long-term success as a credible auto manufacturer. Proton Exora has received an encouraging
number of bookings at the recently concluded Thailand International Motor Expo 2009 in
Bangkok. The companys order books were filled with 1,388 bookings from a total of 25,220
orders placed at the Expo. The Proton Exora, which made its Thai debut at the show, was the
bestselling Proton model with 825 bookings, or almost 60 per cent of total orders. Therefore,
with enhancing Proton Exora existing features by introducing new concept car with emphasis on
increasing fuel efficiency, convenience and safety at competitive price, this would boost further
Proton sales and market shares in the market.
In general, Proton Exora target market and market segmentation can be summarized as follows:
User status
Income
Age
25 onward
Race
All races
Family
3-6 people
Lifestyle
Kotler, P. and Keller, K.L. (2009). Marketing Management (pp 53, 77-84) New Jersey: Pearson
Prentice Hall
PROTONs official homepage. (www.proton.com) & (www.proton-edar.com.my)
PROTONs Annual Report 2009.
http://www1.proton-edar.com.my/