Malaysian Auto Industry Case Study Analysis & Recommendations

MALAYSIAN AUTO INDUSTRY CASE STUDY ANALYSIS & RECOMMENDATIONS

[pic 1] 

The charts denotes the consumer’s perception of value for Money against Perception of Quality among car brands in Malaysia.

Activity 1
You are to required to interpret the chart accordingly.

The line graph above illustrates several Asian and Continental cars in Malaysia. The chart is drawn upon two different aspects which are value for money and overall good quality. These details are interpreted in percentage form. There are 16 car brands illustrated in the line graph above in which 7 cars are Asian cars and 9 cars are Continental Cars. According to the chart, the highest ranking of the car brand that provides overall good quality and value for money is the German car brand Audi with over 70% of overall good quality and 50% of value for money. This is followed by other two Continental car brands which is  also German car makers, BMW and Mercedes. The fourth highest in ranking falls to Nissan, an Asian Car Brand with 30% overall good quality and over 25% value for money. Nissan is regarded as the highest ranking when compared to other Asian Cars. According to the line graph, the car brand with the lowest value for overall good quality and value for money is Volvo with the value for overall good quality nearing at 0% and value for money nearing 10%. Despite being a Continental car brand from Sweden, Volvo sits at the lowest among all the 16 car brands compared in the line chart. This second lowest ranking is Lexus in which shows a very slender lead compared to the lowest ranking Volvo. The other car brands that fall in between the top three highest car brands and the lowest two car brands are considered to have an average range of value for money and overall good quality among all the car brands analysed in the chart. There is much room for improvement for the Asian car brands to compete against the Continental car brands. The key in trying to push through the values in the line graph is to focus on improving its overall good quality and value for money for its cars.

Activity 2

You are a consultant of Kantar, and you are talking to the Toyota head of Marketing. You are required to share what is the positioning of Toyota, are they in a good position? If so why?

Toyota’s position can be considered as a fairly competitive brand among the 16 car brands depicted in the line chart above. Toyota falls as the second highest ranking among the Asian car brands followed by Nissan although overall it is far behind than the top three ranked Continental car brands. Toyota’s position is considered a fairly good position because it has the highest overall good quality among all the Asian car brands. Although there is potential for improvement, Toyota has a value of 36% stating its overall good quality. This is considered good considering the competitive Asian car brands that are available in Malaysia, Toyota is able to withstand the competition and be able to provide a significant value for overall good quality compared to its Asian competitors. However, Toyota should improve its quality and its value for money if it wants to compete against higher ranked Continental car brands like Audi, BMW and Mercedes. As for value for money, Toyota holds 18% which falls behind Nissan which is at 25%. This could be due to the fact of the good resale value of Nissan cars due to its reliability as it ages. Toyota has a long way to improve its values on overall good quality and value for money to hold a strong position among other Asian car brands in Malaysia and if opportunity rises, it could give the Continental car brands a run for their money.