VITALIC SDN BHD:VITALIC SDN BHD:THE STRONG MARKETING OF NEW DEALERSHIPTHE STRONG MARKETING OF NEW DEALERSHIP

1.1. COMPANY OVERVIEWCOMPANY OVERVIEW

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italic Sdn Bhd is one of the authorized Proton dealer which selling the proton car, the Malaysian national automobile manufacturer (Malay acronym for Perusahaan OTOmobil Nasional) in

Malaysia. It is selling the proton car brand for people around the Malaysia. The company primarily operates in the Bandar Baru Bangi. It is one of the new established Proton dealer which has been entrusted to enhance the sales volume of the car by PROTON BERHAD. With a slowing economy and growing demand for more sales, the need to reevaluate the business of selling cars is the top priority for Vitalic Sdn Bhd. An analysis of the present market conditions affecting car sales, specifically focusing on the new car industry defined the current business status of Vitalic Sdn Bhd. The three key components were identified. First, further promote the credibility of Vitalic Sdn Bhd in its community. Second, evaluate and target the sales volumes. Third, implement and commit to the marketing plan created for Vitalic Sdn Bhd that will guide them to effectively market the company in an competitive market. Vitalic Sdn Bhd, a small and authorised car dealership wants to increase its customer base and find out how it can adjust its marketing approach to meet the changing times. What is affecting their sales are the economy, more competition, dealership reputation and their sales strategy and the combination of all of them. There are also another factors involved like location and their accessibility. According to Mr. Hazree Hashim, the company director focus its marketing strategies differently to address its customers effectively in a changing climate.

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The survival of Vitalic Sdn Bhd requires them to reevaluate and sharpen their goals, and to create a marketing strategy to understand the differences one car dealership can have while also exploring new ways of doing things. Vitalic Sdn Bhd has never had a formal marketing plan in place before. How Vitalic Sdn Bhd addresses its increasing competitor base is critical to the success of the company. Therefore, an applicable marketing strategy for Vitalic Sdn Bhd and its manager and sales professionals is a crucial part of managing a business in such a competitive industry. Vitalic Sdn Bhd is part of the authorized Proton dealership in Malaysia. The company is in its only three years of business, where almost one-quarter of its customers are repeat buyers. The other three-quarter is from the Internet, agent/broker and walk in consumers. The company must sell larger volumes of sales and stressing quantity over quality. The company will implement this advantage into its marketing strategy by promoting the fact that with warranty by Proton Berhad, lower price and good quality of services, a consumer can purchase a car with ease and confidence. So, even with complaints ever recorded by Proton i-care, and a warranty on all cars, Vitalic Sdn Bhd must still overcome the common complaints associated with Malaysian car and their sales staff.

2.2. A HISTORICAL VIEW OF COMPANYA HISTORICAL VIEW OF COMPANY

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italic Sdn bhd is was officially opened on 1 April 2008 by Datuk Hashim Safin. Before officially open, Datuk Hashim Safin was a politician. After 12 days opened, he was dead due heart attack. After that, the company was hand over to his oldest son

Mr. Hazree Hashim who are graduated in BBA (Hons) Marketing. The company was lead by Mr. Hazree Hashim until now. This company is located at Section 3 Bandar Baru Bangi, Selangor which is 1.5 kilometres from Malaysia Nasional University (UKM) and it had a showroom that displayed the full range of Proton model to be viewed by the customers. This company was just opened for 3 years. This company was hold by Mr. Hazree Hashim who be the main role in the company that lead the whole chain of the company. Mr. Hazree Hashim was assisted by Mr. Azmi Othman as assistant manager who responsible to supervise the whole chain of the company from administration department, financial department and sales forces. Mr. Azmi Othman also act as the sales person ensuring the sales volume are increase continuously.

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The main objective of the company is to increase sales by an everage of 60 to 100 units per month. It also confident would be well received and increase sales minimum of 40 units monthly to break even. Based on the monthly production, it would be allocated at least 20 to 70 units of mix model per month by PROTON assembly point. The portfolio of PROTON models that sell by Vitalic Sdn bhd includes the reliable family-sedan Proton Persona, the small sedan Saga, the stylish and sporty Proton Satria Neo, the elegant Proton Inspira, the Versatile Proton Gen2, the fun-to-drive Proton Savvy and the mpv Proton Exora. As the new established company, currently it has almost 30 employess who are involved in the whole value chain of the business from sales, administration, marketing, processes and delivery especially the sales advisors who are be the important part and acts as the front liner of the company. Strong customer orientation and competitively priced products are the foundation of it business and essential to its success. Its aim to maintain market share by continuing to deliver good products and services at once satisfy their customers needs better and enhance profitability. Thus, its professional, attentive and friendly community especially the sales forces will be at hand to ensure the customers are given the utmost attention as its strive to bring the best of service and enhance their image and reputation plus they are monitored for their sales performance based on their sales volumes. At the end of the month the sales performance by the sales force were be recorded at the ‘Sales & SSI Performance Monitoring Board’ as picture showed above.

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3.3. MARKETING CONCEPT OF THE COMPANYMARKETING CONCEPT OF THE COMPANY

MARKETINGMARKETING OBJECTIVEOBJECTIVE

The main business activities of this company encompass sales, promotions, loan submissions, processes for the purpose of registration and car delivery. The company is also involved in renewing roadtax and car trade in to support the main business activities. The company selling variety of cars provided by Proton Berhad for diverse consumer preferences. The goal and objective of marketing strategy is to continue promoting Vitalic Sdn Bhd as a trustworthy authorized dealership through a seamless program while incurring minimal costs. The marketing strategy includes all of the requirements for Vitalic Sdn Bhd to succeed. The Need for a Marketing strategy is to create customers more. Slow sales and slumping profits are contributes to marketing problems. In order to increase their sales and profits, they should increase and improve their marketing efforts. Marketing is an investment in future business. Selling is getting rid of what they have, while marketing is having what they can get rid of. A marketing strategy helps them to better understand what their customer needs and where they go to get it.

MARKETINGMARKETING STRATEGYSTRATEGY

There are a lot of strategies that was used by this company to attract more customers coming to their showroom and improve their sales volumes. These strategies are includes promotion, give high trade in and trade offerings. To find and attract customers, Vitalic Sdn Bhd don’t owe their greatness to luck. They’re on top because they know more about their consumers than the competitors and they execute their marketing efforts better.

i. Promotional Strategies

The primary strategy is to locate Vitalic Sdn Bhd’s best means of attracting business. Sales personnel will continue with friendly and courteous service. Vitalic Sdn Bhd will host an open house event to introduce potential customers to the business. For instance, when there is a new product produced by PROTON BERHAD, the company will organize a launching event introducing customers for the new model. To build on customer service and keep current reputation, there will be survey interview from proton i-care to each customer and perhaps to keep the Vitalic Sdn Bhd’s name in mind for past and potential future customers. There are three booth that was opened by Vitalic Sdn Bhd to market their sales and to enhance their sales volumes by asking its sales advisor to responsible to meeting and dealing with the customers by promoting and experiencing with customers who targetted to buy the car. The opened booth were at Giant Prima Saujana Kajang, Econsave Bandar Baru Bangi and Maybank section 1 Bandar Baru Bangi. Each sales advisor has responsibility to perform their duty for each place according the time table provided. Each sales advisor has their own strategy to enhance their sales perfomance. Its include do attractive flyers and offer for the attractive free gifts. Some customers who are coming want to trade in their old car to the new proton car. Therefore, its opportunity to the sales advisor to offer a high trade in to

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attract customers to buy the new one with them. This strategy will attract the customers as they think they are getting high offering from this company.

ii. Pricing Strategy

Vitalic Sdn Bhd will position itself as a reputable new car dealer of PROTON BERHAD. Continue to price vehicles at a great value to customers, marketing and advertising budgets was keep under RM10,000/year. Potential problems was economy, financial difficulties, poor customer service, poor sales techniques, slow car production and poor quality of car from the assembly point are being identified and exposed in a consumers’ complaint. The actions is needed to make the company to achieve sales and marketing goals. Since slow sales and slumping profits are marketing problems, it is time to get Vitalic Sdn Bhd its first-ever marketing strategy. In order to increase its sales and profits, Vitalic Sdn Bhd must increase and improve its marketing efforts since marketing is an investment in future business by structure their pricing and give as high offerings that can add more value to the customers.

iii. Trade offerings

Some customers are concern about the offers from car dealer when they decided to buy the new car. They will patiently waiting for the offerings from the seller like early bird chaches the warm. Hence, the sales advisor will have to take this as the important thing that they have to give otherwise they will patiently their customers in the same time lose their sales. This trade offerings is the discount that should be give to customers. Some one the discounts are from PROTON itself and some of that are from the sales advisor depend on their offerings. For example, PROTON has offer a discount for proton Exora at RM1000. Thus, this opportunity for sales advisors attracts their customers by giving extra discount of RM300 that will be deducted from their commissions. However this extra discount is depend on the amount of exora commission that the sales advisor received from the company. Naturally, these campaigns are ideal platforms to bring Vitalic Sdn Bhd closer to the customer base. During the year, there was also a marked increase in the frequency of visits by the sales to the various areas in which Vitalic Sdn Bhd has presence, to enhance its understanding of the markets and provide better response to the customers.

MARKETMARKET SEGMENTATIONSEGMENTATION

Vitalic Sdn Bhd segmenting their customers into 3 segmentation based on the car models. First segmentation based on geographic segment which it identify its customers based on their location which are from other countries, city and population density. The customers of this company are coming from variety of neigbourhood countries such as selangor, kuala Lumpur, negeri Sembilan, Melaka, Johor, Pahang and kelantan. It is because some of them are the acquaintances of the sales advisors who are come from variety of countries. The customers also coming from other cities instead of Bandar Bandar Baru Bangi such as those are from Kajang, Cheras, Serdang, Shah Alam, Semenyih and Puchong. The population density of customers are includes the urban and rural. Most the urban customers are from Kuala Lumpur and Bandar Baru Bangi itself and most of the rural customers are from Semenyih and Kajang. The second segmentation is based on demographic segment which is based on their age, income and family size. The customers preferences are always be its periority. Most of their customers are earned a low income. Thus, everytime the customers walk in into the

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showroom or promotion booth, the sales advisor will ask them about their age and income. This is the way they suggest the car model based on customers age and income. For example customers who have a big family, the sales advisor will recommend them to buy the MPV Proton Exora. The third segmentation is psychographic segment which based on lifestyle of the customers. Customers who coming to this company are from different background and lifestyles. Some of them are from rich family and some of them are not. Most of them those are from rich family are prefer to buy the Proton Inspira and the Proton Persona whereas those are not from rich family are prefer to buy the Proton Saga FL and the Proton Savvy that are have a lower price than other models.

TARGETTARGET MARKETMARKET

Vitalic Sdn Bhd has sell the cars to Malaysian people especially the customers from Bandar Baru Bangi and their neighborhoods. The company also is aggressively marketing its cars in several states. It starts when its sales advisor invented to distribute their attractive flyers to people everywhere and advertise the advertisement in newspapers or magazine and do a their own website or blog. Hence, the customes and sales advisors will communicate each other through telephone, email, fax and internet as well. Each sales advisor have their own target market. The targetted customers are those from government sectors and private. These includes who those from Universiti Kebangsaan Malaysia, ILKAP, Klinik Kesihatan Bangi and also from private sectors such as factories, enterpreneurs and companies near to them.

APPLYINGAPPLYING HOLISTICHOLISTIC MARKETINGMARKETING

Holistic marketing concept is based on development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that "everything matters" with marketing and that a broad, integrated perspective is necessary to attain the best solution. Four main components of holistic marketing are relationship marketing, integrated marketing, socially responsible marketing, and internal marketing.

i. Integrated Marketing

One of the major activities of the company is to integrate all the marketing activities and programmes that create, communicate and delivering value to the customers. The marketing programme such as the launch of new model from PROTON BERHAD. In this programme, the customers are invited to come to company to experience the new model by providing the ‘Test Drive Car’. Customers also are serve individually by sales force and are invited to have meals provided. During the program, the showroom that displayed the car models especially the model that will be launched to be the “Hero” in the showroom. The Famous Marketing Mix which is the Four Ps, as devised by E. Jerome McCarthy constitute the traditional marketing activities in four broad groups was applied and showed by the company during the programme.

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Four Ps Descriptions

1. Products The design, the features, the name, the style, the engine was used, the qualitiy, the warranty, the package and the service of the model.

2. Price The Price list, the discount, the rebates, terms of delivery, Installment & purchase facility, panel financial and the maintenance prices.

3. Place Locations of delivery, location of distribution, and physical distribution

4. Promotion The sales person in charge, advertising, and sales promotions, publicity and public relations, order processing.

ii. Internal Marketing

Internal marketing of the Vitalic Sdn Bhd involve ensuring that everyone in the organisation adopts appropriate marketing principles and the manager are aware about it. This includes the hiring, training and motivating the sales force to serve the customers well. When hiring the sales person, the manager will interview them personally. The personal attributes of that person will be examined carefully. The personal attributes of the person are includes their self confident, communication skills and motivation. The sales experience of the person also will be asked because it is important to be sales advisor that will produce a high volume of sales. After that, the hired sales person will be send to training programme that was conducted by PROTON BERHAD at the headquarters at Shah Alam Selangor. During the training, the sales person will be train to doing sales, communicate effectively and attracting customers in the right way as well as to convert the purchase based on current stocks. Beside that, everytime the new model was introduced, the sales person will be send to training programme in order to expertise to the new model. Instead of sales person, the administrative personnels also were sent to training program as new system was introduced. These internal marketing requires that everyone in the company buy into the concepts and goals of marketing, and engage themselves in selecting, creating, communicating and delivering customer value. Only when all the employees realise that their jobs are to create, serve and satisfy the customers does the company become an effective marketer.

iii. Social Responsibility Marketing

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As we know holistic marketing incorporates social responsibility marketing. This involves broader concerns of the society at large, like social, legal, ethical and environmental in the context of marketing activities. For instance, Vitalic Sdn Bhd has in charge in a society when Maybank Berhad at Section 1 Bandar Baru Bangi Selangor organized an event for blood donation. By do so, their customers and panel institutions (such as Maybank Berhad) should never forget its contribution to the society. It requires that Vitalic Sdn Bhd carefully consider the role they are playing in terms of social wefare. Therefore, the company can evaluate whether they are truly practicing ethical and socially responsible marketing and in order to increase their image and reputation as well. By showing their enthusiasm, it is possible to the company to be well-known dealership by people surroundings. According to Mr. Hazree Hashim, there are several factors are driving Vitalic Sdn Bhd to practice higher level of corporate social responsibility. It includes by rising customer expectations, Changing employees expectations, and changing business procurement criteria.

iv. Relationship Marketing

The development of deep and enduring relationships with all the people in Vitalic Sdn Bhd involved directly in the marketing activities of this company is appearing as a key goal to achieve a high volume sales. This is the concept of relationsip marketing aims at building mutually satisfying long term relationship with the Vitalic Sdn Bhd’s customers, financiers, panel instittuions such as banks, insurance company and government institutions that involves in the registration process of the new car of customers in order to earn and retain their business. It is also builds strong business binding amongst the parties. There are four key constituents of marketing in Vitalic Sdn Bhd. They are the customers (who are interested in buying the new car with them), employees (that consists of sales force who be the important part of the company), marketing partners (incorporates other dealers, suppliers, distributors and other marketing agencies such as company that distributes the advertisement surrounding areas), financial community (incorporates the dealer group, financiers such as banks) and another key constituent of institutions (such panel insurance, governemnt sectors like Jabatan Pengangkutan Jalan or Road Transport Department and Custom).

MARKETINGMARKETING STRATEGYSTRATEGY OFOF COMPETITORSCOMPETITORS

Vitalic Sdn Bhd has grow to be a strong dealership for surrounding areas. However it has to adapt with the treats of the competitors and share the market with these rivals. There are two nearest proton dealerships that the company has to compete with. According to Mr. Hazree Hashim, the company has to compete with these local rivals in order to attract the customers in the same area. Currently, these two dealership are located in the same area with Vitalic Sdn Bhd which is Bandar Baru Bangi Selangor. These dealership also have their own marketing strategy. They are also do promotions by opening a booth at the shopping complex in the same area. The strong marketing strategy by competitors become treats for the company to do business. Thus, the company have to struggle to do a enormous

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promotions in order to compete with them. Instead of these dealership, the company also has to compete with national Perodua dealers (Acronym for Perusahaah OTOmobil kedua) that was also located in the same area. Recently, the competitive position of Proton and Perodua has remained a key focus for the Malaysian automobile industry in recent years, with the two firms combined market share declining. However, Proton has been particularly hard hit by this rival.

4.4. COMPANY ATTRACTIVENESSCOMPANY ATTRACTIVENESS

ccording to Mr. Hazree Hashim, the company also aware about the information in their marketing and advertising at once letting customers knows the unique point of the company that does not downgrade the company. He said that the main point was

that dealerships have to think more about selling value than selling price because customers want value. Therefore, no matter what the product or service is, the winners of tomorrow will survive by knowing how to access the mind of the consumer. Details like car colors, the car model, panel insurans, panel banks, registration plat number, and the unique characteristic of the car are the most important things to customers. For a dealer like Vitalic Sdn Bhd, knowing these details can sell a car along with friendliness, convenience, speed of purchase or whatever a consumer experiences will determine a consumer’s decision on what and where to buy. If a consumer is happy with their purchase and experience, satisfaction increases a consumer’s desire to buy the same brand at the same dealer. First of all, the location of this company are strategically located. It is located at Bandar Baru Bangi which most of the customers are professional and educated customers those are have a strong income. Then, its location near to shop lots and restaurants. In front of this company have a big car park that make it easier to the customers to park their cars without having difficulty of searching for car park. The facility provided also very comfortable and nice looking. It has a complete set of sofa, television completed with astro, discussion rooms, attractive car displays, an available test drive, and stock availability.

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5.5. THE FUTURE POTENTIAL THE FUTURE POTENTIAL

s we know, almost 80% of the customers are using the search engine to investigate a potential purchase from the dealer. We also know that customers are 10 times more likely to look at a car advertised with at least one image and we know that an even

larger percentage of buyers search online before they went to car showroom. It is so obvious that customers are now need for detailed information. By having a single picture is not enough because the customers demand for multi picture technology, close ups and interior shots with film technology. Therefore, the sales person have work hard to show to customers all those things. Thus, the company has to ensure that the sales person be competent and possess excellent knowledge and skills of how to handle the customers when they are coming to the showroom instead of searching via internet. The Future of Vitalic Sdn Bhd is destined

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to not only stay in business but also continue to be a successful business. With its reputation already in tact, it is already multiple steps ahead of the game and its competition. Economical factors can and will affect tact as it would any business. However, there will always be a need for personal transportation. These challenges ranged from job stereotypes, consumer complaints, an increasingly savvier consumer, and the basic lack of a clear direction or focus to the consumer. If Vitalic Sdn Bhd can keep their customers happy, continue to keep their referral business going and the same customers coming back, business can only succeed. With the marketing tactics and strategies discussed, Vitalic Sdn Bhd can further focus on its customers. Vitalic Sdn Bhd is doing a good job overall and the new marketing strategy for Vitalic Sdn Bhd will just add to its already good reputation. This marketing strategy will refocus Vitalic Sdn Bhd’s approach to marketing and examine strategies that can adjust to the changing economic climate. This case indicates how to effectively position Vitalic Sdn Bhd and provide a guide on how to market itself effectively today and in the future.

Herein lies the opportunity through an applicable marketing strategies for Vitalic Sdn Bhd to promote Vitalic Sdn Bhd above the typical dealership. The overall objective of the marketing strategy is to create a business overview and therefore a marketing application to be presented and used by Vitalic Sdn Bhd’s manager and sales professionals that will guide them to effectively market Vitalic Sdn Bhd in an increasingly competitive market. Much of the research discusses various challenges facing a company in a highly competitive marketplace. These challenges range from consumer complaints, an increasingly savvier consumer, and the basic lack of a clear direction or focus to their customers. Therefore, this case will define the current status of Vitalic Sdn Bhd and analyze what the market is doing for car sales specifically detailing the new car market, and discuss the positive outcomes that can result when a new marketing application effectively and move Vitalic Sdn Bhd from ordinary to excellent.

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