Air Asia Marketing Analysis
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Transcript of Air Asia Marketing Analysis
"Now Everyone Can Fly"..
BACKGROUND/HISTORY
BACKGROUND/HISTORY
Thai National Airline was the only one
airline which could fly in the main routes
such as Bangkok-Chiang Mai by non-stop
traveling in the past.
Other airlines had to land at Utapao airport
before taking off to Chiang Mai.
Utapao Airport
a joint civil-military public airport serving Rayong and Pattaya (city in Chonburi).
BACKGROUND/HISTORY
The beginning of low-cost airlines.
BACKGROUND/HISTORY
AirAsia was established in 2001 offering
the new image of traveling under its opinion “Now Everyone Can Fly”
BACKGROUND/HISTORY
AirAsia began with only 2 Boing737-300
series and started its first
point-to-point flight.
Boing737-300 series
BACKGROUND/HISTORY
It presented low rate of fares as well as
services which is necessible.
BACKGROUND/HISTORY
AirAsia has swiftly broken travel norms
around the globe and has risen to become
the world’s best.
With a route network that spans through to
over 20 countries,
BACKGROUND/HISTORY:EXAMPLES OF AWARD & RECOGNITION
EXAMPLES OF AWARD & RECOGNITION
Year 2012
2012 ATW Value Airline of the Year
EXAMPLES OF AWARD & RECOGNITION
Year 2011
Best Asian Low-
Cost Carrier
By TTG Travel Awards 2011
World’s Best Low Cost Airline
Best Low Cost Airline – Asiaby Skytrax
Fastest Growing Foreign
Airline for Cargo
by Guangzhou BaiyunInternational Airport
EXAMPLES OF AWARD & RECOGNITION
Year 2010
2010 Asiamoney’s Best Managed Company Award
VISION To be the largest low cost airline in Asia
and serving the 3 billion people who are
currently underserved with poor
connectivity and high fares.
MISSIONTo be the best company to work for whereby
employees are treated as part of a big family
Create a globally recognized ASEAN brand
To attain the lowest cost so that everyone
can fly with AirAsia
Maintain the highest quality product, embracing
technology to reduce cost and enhance service levels
VALUES Safety First
High Aircraft Utilization
Low Fare, No Frills
Streamline Operations
Lean Distribution System
Point to Point Network
STRATEGY
STRATEGYStrategy-Customer
Strategy-System
Strategy-People
System-Customer
System-People
Customer-People
STRATEGY
Strategy-Customer
Strategy that AirAsia uses is the low-cost
strategy for everyone can fly with AirAsia.
STRATEGY
Strategy-System
AirAsia uses cost-leadership and aims to
reduce cost by using the same series of
plane.
In addition, flying from point to point can extremely reduce cost of the airline.
STRATEGY
Strategy-People
AirAsia treats their officers as
they are part of the firm.
This matches to the direct service
developing strategy
System-Customer
Target customer of AirAsia don’t expect any
extraordinary service, but only the low fare and
fast flying one.
STRATEGY
online-seat-sparing system
System-People
AirAsia sets up the employees’ required
attributes to fit to the well-organisedsystem.
STRATEGY
Customer-People
AirAsia trains officers to solve the problems for the customers immediately when being asked for help.
STRATEGY
STRATEGY
MARKETING:MARKETING MIX (4Ps)
MARKETING MIX (4Ps)
Product (Service):
Guest Convenience
Frequent flights
Ticketless service
Easy payment channels
Price:
Low fare, no frills
Place (Distribution):
Internet booking
Reservations and sales
offices
Authorized travel agents
Promotion:
AirAsia’s BIG Loyalty
Programme
AirAsia’s famous flight
attendant
Other sale promotions
MARKETING MIX (4Ps)
It’s a global loyalty programme where BIG SHOT
(member of BIG Loyalty Pragramme)
can earn BIG POINT from every transaction and redeem it for FREE FLIGHTS with AirAsia.
AirAsia’s BIG Loyalty Programme
Chindarat Chintanasathien(also known as “Lady Dada”)
Lady Dada is one of AirAsia’s promotions planning, as we can see from these Marketing Activities:
MARKETING MIX (4Ps)
AirAsia’s famous flight attendant
Lady Dada takes part as sports
commentator at AirAsia Thailand Super
League’s opening match.
MARKETING MIX (4Ps)
AirAsia launches two new dishes
onboard- “Dada’s grilled chicken with sticky rice” and Chicken Lasagne!
MARKETING MIX (4Ps)
MARKETING MIX (4Ps) AirAsia’s famous flight attendant
MARKETING MIX (4Ps)
Other sale promotions
MARKETING:TARGET MARKET
TARGET MARKET
A lot workers or low pay salaries earners
who would like to travel often to meet their
families especially during special
occasions but due to how expensive it was
that time, their desire are not fulfilled.
MARKETING:WAYS TAKING TO IDENTIFY THEIR TARGET MARKET
WAYS TAKING TO IDENTIFY
THEIR TARGET MARKET
Branding
They came with a brand “ Now everyone can fly”
These points of contact with their target
customer help them to mold their image,
which in turn created loyalty from their customers.
WAYS TAKING TO IDENTIFY
THEIR TARGET MARKET
Philanthropy
"AirAsia's accomplishments and success today
is a reflection of the public's trust and faith in the
company," said Tony Fernandes (Fernandes),
CEO of AirAsia.
WAYS TAKING TO IDENTIFY
THEIR TARGET MARKET
Reduced Price Sales
They reduced their price to suit their class of
customers.
WAYS TAKING TO IDENTIFY
THEIR TARGET MARKET
Group Discounts and Offers
They have a scheme of group discount and this
help to get more target market, especially
internet based customers.
WAYS TAKING TO IDENTIFY
THEIR TARGET MARKET
Foreign workers and Contractors strategy
AirAsia also target most foreign workers from
Indonesia, Singapore, Thailand, China, Macau who
may not afford the expensive flight home.
MARKETING:SWOT ANALYSIS
SWOT ANALYSIS
Strength
AirAsia’s brand name is well established in
Asia Pacific
AirAsia is the low cost leader in Asia.
Air Asia has a very strong management team
with strong links with governments and airline
industry leaders.
AirAsia has the excellent utilization of IT.
Weakness
Asia does not have its own maintenance,
repair and overhaul (MRO) facility.
AirAsia receives a lot complaints from
customers on their service.
Opportunity
“ASEAN Open Skies” agreement has been
reached.
There is also some opportunity to partner
with other low cost airlines.
The population of Asian middle class will be
reaching.
Threat
Certain rates and charges are beyond the
control of airline operators.
AirAsia’s profit margin is about 30% which
has already attracted many competitors.
Customers worry about safety.
Strength
AirAsia’s brand name is well established
in Asia Pacific
AirAsia is the low cost leader in Asia.
Air Asia has a very strong management team
with strong links with governments and airline
industry leaders.
AirAsia has the excellent utilization of IT.
Weakness
AirAsia receives a lot complaints from
customers on their service.
Asia does not have its own
maintenance, repair and overhaul (MRO)
facility.
What is MRO?Maintenance, Repair and Overhaul
(MRO) involves fixing any sort of
mechanical,and also includes performing
routine actions which keep the device in working order or prevent trouble from arising
Opportunity
There is also some opportunity to
partner with other low cost airlines.
The population of Asian middle class will
be reaching.
“ASEAN Open Skies” agreement has
been reached.
“ASEAN Open Skies” agreement
An international policy concept that calls for the liberalization of the rules and regulations of the international aviation industry—especially commercial aviation—in order to create a free-market environment for the airline industry.
Threat
Certain rates and charges are beyond
the control of airline operators.
Customers worry about safety.
AirAsia’s profit margin is about 30%
which has already attracted many
competitors.
THANK YOU FOR YOUR ATTENTION