08 August 2011

The Proton Saga

remember when the first iPod was a little inferior mp3 player without a FM-tuner? Well, tables have turned biotches!

It bemuses me to see somewhere in July 2009 Proton releases a variant of second generation Proton Saga called Saga SE (Special Edition, I assume). I stumbled upon its printed ad where a man looks on to the readers. With his spiky Korean-esque hairstyle, beside him is the same man, with the same shirt and staring the same way at the readers only difference donning an overgrown shades. The punchline of this printed ad is “ Tampak Perbezaannya! “ ( which means noticeable difference )

Never mind, the differences. No doubt, It exists in a littlest form. Proton Saga SE prominent change was the black painted roof to mimic a panoramic roofed cars. And screamed “ Tampak Perbezaannya!

Seems like Proton has thrown a blanket of sarcasm onto itself; akin to spitting in the air only to see the spit landed back in its face. Moving back in time, the first-generation Proton Saga has been a subject of discreet yet strong criticism, one thing is for sure: Proton likes selling 18 year old models. In a desperate bid to push old models for people to swallow, little cosmetics modifications were made. Such as brushed metal gearknobs, larger circumference air-cond vent for our warm tropical weather, futuristic designer dashboards, aggressive fog lights, and a more contemporary ‘Saga’ badge at the butt. The above mentioned ‘features’ lined up the Proton Saga catalogue to woo potential buyers. Other car manufacturer had their catalogue brimmed with real engineering-backed features that literally bubbles salesperson mouth with automotive knowledge to the bleeding edge, if I may say.

Of course, Its hard to build a car, or introduce practical automotive innovation nevertheless, to market it effectively. If making cars were such an easy business, people would have made it in their backyards. But the national carmaker messy line up of models seems like Proton is taking its shot in the dark of the vast vehicle market. Mid-sizes hatchback like Gen.2 has to share market spaces with Waja and Persona sedan. The Satria Neo two-doors compete with Savvy fighting for the young. They wanted to make utility vehicle (discontinued Arena a.k.a Jumbuck ),they had an executive vehicle ( Perdana ) they wanted to initiate in-house performance tuning arm ( R3 ) and they enrolled themselves in rallies of different categories all over the world. What is Proton trying to relay to us with all this?

It was the introduction of the MPV Exora that I began to realize that Proton could possibly reemerge as a small but significant car manufacturer in the world by targeting the value-seeking family-oriented motor transportation.



Sweet Spot Strategy

When AirAsia started offering low fares flight, we wondered how AirAsia is going to pay its pilot? Stewardess and its staffers? Initially we had a paradigm of air travel being reserved for the affluent. Not forgetting pilots and their handsome wages. Did they use fourth-hand aircraft that would split into two in mid-air? Did they pay drop-out pilots that lacked training? Do they use rethreaded aircraft tyres?

As time passes, we become comfortable and convinced with the word ‘now everyone can flies’. Travelling with airasia is casual slippers and Bermuda, undiscriminating, had turned a blind eye to the how-much-you-earn factor. Minus the frills yet people can still say ‘ tak adalah cikai sangat naik AirAsia’


At first MAS did not respond to this model. Perhaps they perceive the future of airtravel is a two layer strata of executive high-end experience and low-budget airlift. Advantage is never on AirAsia side, they were initially denied to some travel routes, had scarce aircraft and uses the cheaper less architecturally versatile LCCT which nobody would upload to Facebook.
But things turned out differently. MAS had a series of financial hiccups requiring several management shuffling and administration changes. They had to sell off their building in Jalan Raja Laut. On the other hand, Airasia thrives and continued to expand. Today, although not being told, by guesstimating, AirAsia could be several times bigger than MAS and would eat the latter any time.


Airasia must have figured out the sweet spot of air travelers. They delivered the basic services demanded and cut/lessen the icing off to offer a noticeable better deal than the national carrier. But vital to this success is to sell it in volumes. Very large volume.
In a scenario where great competition involves between two or more company, a strategy seems likely the light out of the dark tunnel. The sweet spot strategy. We all knew like AirAsia, Proton had little to less advantage in its side. Proton is ages behind to compete with the likes of Porsche with its vast hall of fame of automotive innovation starting from Dr. Ferdinand Porsche (whom designed tank turrets for breakfast). Nevertheless to challenge Subaru or Mitsubishi with their mean blazing fast all-wheel driven performance cars engineered gram by gram.


Proton should consider sweet spotting the car market. And by all means, Malaysian market if it’s feasible enough. Make a vehicle that people needed the most, design it wisely, price it nicely, dedicate their engineers to this model, update it frequently and push it with volume. One particular candidate is the second generation Saga. Particularly the Saga FL.


Why is the second-gen Saga is the best? Because Proton branded Saga as the ‘peoples car’ hence it suppose to behave like one. It is suitably sized for a young family of two kids with ample space for bags during balik kampung, equipped with adequate 1600cc of engine displacement that guzzle octane prudently, modestly designed to agitate a Kancil, reliability from wiper to electric windows and attractively priced. With these factors, Proton can push this single model in large volumes and probably crawl out of the red.


In fact, the amazing rollout of Saga FL had pushed Proton sales numbers over Perodua sales!
Proton doesn’t have to feel ashamed with lacking its in-house performance tuning arm. A miniscule of motor vehicle user would be such enthusiast to morph their vehicle into a mean machine of highway dominator. Proton can drop models that isn’t necessary to its aspiration making better returns.. If we assume Malaysian thirst for nimble city transporter, a ‘peoples car’, and a spacious large family vehicle ( plus, affordability applied to all subsequently ) then Savvy, Saga and Exora would be great to start off. Lacking of models? Roll out face-lifts say, every 8 months and replacement every 24months and people would flock Proton showroom like Apple store.




Make the entry generous

For almost every company, the entry level product is the eye opener. The closest approach for first impression. It’s a segment where car manufacturers can be generous to people who seek value, run for their money, bang for buck or whatever you may call it in marketing mumbo-jumbo. It’s usually much affordable product in the line-up. Think entry level for first time car buyers. Think Honda City, Think Toyota Vios, Think Mazda2. In order to create brand following, the entry level model is great place to start.


Proton offering comes in the form of Saga. Proton gave the production name of Saga as BLM or Base-line model, thus imply its target market segment. Currently on its second generation, the Saga FL (referring to facelift) bares a remarkable new facade. The introduction of Saga FLX proves that Proton commitment to lure this market segment. The FLX offers a real engineering-backed feature through the inclusion of CVT ( Continuous Variable Transmission ) Powertrain – which no other models had to offer, except the Mitsubishi Lancer-derived Inspira.


CVT, in laymen terms, offers a smoother transmission through variation of pulley diameter. In other words gear change is adjusted according to your driving style. If you’re hard pedaling a delay in gear shifts are made to deliver more powah. If you’re cruising, a different gear ratio is engaged to keep fuel consumption at minimum. Im glad, these are much more deserving automotive features rather than USB Ports, skirting or chrome-like lining on air-con vent holes. And that’s an X-factor of Saga FLX, a pleasant addition to the Proton entry level model.


Kudos to Proton, and if they are really aggressive to bring out more to Saga, they might have a winner model here. Roll it, wrap it and let the people say “Tak adalah cikai sangat Proton Saga