As a home-grown compact auto manufacturer in Malaysia, Perodua has incorporated social messages into its corporate ads since 1999, seeking to enlighten the local audience about various social issues and values. With the growing concern of corporate social responsibility ("CSR") worldwide, company marketing with a social measurement ("CASD") seemed to be an effective means for Perodua to describe its good corporate citizen image. However, the impact of the advertisements on tangible and direct returns in the kind of sales was hard to determine. Since 2005, trade liberalization in South-East Asia resulted in decreased government protection for the indigenous automotive business of Malaysia and there was more emphasis on corporate differentiation strategies.
In response to the escalating competitiveness and the growing interest in CSR, Perodua's corporate leaders and its management had to reconsider how corporate advertisements stressing societal aspects could prolong the business's profitability and standing in the long run. Controversies easily appeared when societal problems like race-related topics were not handled with sensitivity, given the varied cultural context of Malaysia. Set in a multicultural environment where the social impact of promotion is accentuated and in the context of an industry defined by intensifying competitiveness, Perodua's strategy of CASD becomes quite fascinating.
PUBLICATION DATE: April 09, 2008 PRODUCT #: HKU741-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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