Full Proposal New Elin
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Transcript of Full Proposal New Elin
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7/29/2019 Full Proposal New Elin
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AIRASIA SDN BHD ASPIRE CARD
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EXECUTIVE SUMMARY
We, the representatives of the employees of AirAsia Company would like to propose
for a new product which is a card that will give benefits to customers.
We would like to propose this new product because our airline company has lacked of
offering privileges to the customer. The first problem is that customers do not get any
privileges or benefits when they buy AirAsia products and services. Apart from that, there
are stiff competitions between AirAsia and other airlines companies which could affect
AirAsia revenue. Thus, we will introduce Aspire Card as our alternative to compete with
other airlines.
The objectives of this proposal are to provide more customers privileges(human
right) when they are using or purchasing AirAsia products and services, to be one of the
chosen airlines by travellers instead of choosing other airlines companies as well as to
increase more profit.
The basic procedures taken to prepare this proposal was by select a pro-tem
committee, call for a meeting to select Office Bearers/Club committee, identify a suitable
design to create the card, work up the budget for launching and produce the card and drafting
terms and conditions of the Aspire card.
The total cost is approximately RM 1,249,800 whereby initial payment is RM
1,123,300 and monthly expenses are RM11,500.
The limitations of this proposal are that there are stiff competitions between other
airline companies and AirAsia in Malaysia and there are limited destinations in launching
Aspire Cards.
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Company proposal
Air Asia Company Sdn. Bhd.
1.0A proposal to create a card.
1.1AirAsia Sdn. Bhd is one of the well established companies in the world. Its maingoal is to give the opportunity for everyone to fly by giving benefits to the
customers. In order to achieve this goal, the board of directors have come up with
a new idea which is creating a card. By creating this card, it will bring many
benefits to the company in terms of productivity, profits and much more.
1.2AirAsia Company chose Aspire as their card name which means hopes orambitions toward achieving something. This shows AirAsias desire to be one of
the top preferred airline companies by implementing Aspire card which give the
customers more privileges. There are 3 tiers of Aspire Cards that are Sapphire,
Ruby and Diamond. These cards have different specializations that will bring
different privileges to the customers.
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2.0Problem statements
1) Customers do not get any privileges or benefits when they buy Air Asia Productsand Services.
Many airline companies have provided more privileges for the customers. These
privileges have attracted more customers to go to their airlines. In contracts, Air Asia
does not offer more privileges or benefits when a customer buys their product and
services. To give customers more benefits, AirAsia must create a new product to the
customer which could give the customers more benefits as well as attract them to
purchase and use AirAsia goods and services.
2) There are stiff competitions between AirAsia and other airlines companies whichcould affect AirAsia revenue.
Airline industry has been facing with stiff competition due to the increased number of
airline companies in the sector. So, AirAsia should imply various strategies in ensuring
that it meets with the competitiveness in the economy. The strategies should include
low fare, best customer service, short-haul route and destination, reduction of operating
costs, internet services in its reservation system and quality management.
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3.0Objectives
1) Provide more customers privileges when they are using or purchasing AirAsiaproducts and services.
AirAsia does not provide more privileges for customer like other airline companies. By
introducing Aspire Card, customers can get more privileges and collect points by
purchasing Airasia products and services. The points earned by customers can be
redeemed with selected items, flight tickets, and theme parks.
2) AirAsia wants to be one of the chosen airlines by travellers instead of choosingother airlines companies.
Nowadays, there are so many airline companies in Malaysia such as Berjaya Air,
AirAsia, MALINDO AIR, MAS and many more. Mostly MAS is the chosen airline
company among other airlines. To be one of chosen airlines by traveller, AirAsia must
implement a new mean to improve its company as well as increase their profit.
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4.0Specifications of the cards
1) Collection of points.
AirAsia has decided for every RM100 spent by customer, they will earn 1 point.
Customer can spend their money in buying AirAsia merchandises, meals, ticket flight
as well as services and accommodations in Tune hotels all around the world.
2) Redemption of Points.
Every points earned by customers can be redeemed with selected items. The items
that AirAsia offered are, discount for the selected theme parks, AirAsia ticket flight
and as well as services and accommodation in tune hotels all around the world.
Discount will be given according to the level of the cards which are Sapphire, Ruby
and Diamond. The selected theme parks are Lego Land, Genting Highlands and
Lost World of Tambun.
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ASPIRE CARDS DESIGN
DIAMOND
A touch of luxury
RUBY
The ruby standard of a
rewarding lifestyle
SAPPHIRE
A deep loyalty
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3) Privileges of the cards
Sapphire card
Privileges for ticket flight :
Priority Boarding
Enjoy Priority Boarding which allows you to pre-board the aircraft at the
same time as First Class and Business Class passengers, even when youre
flying Economy Class.
Priority Check-in
Priority Check-In allows you to check-in for your flight at any available
Business Class counter, even if youre flying Economy Class.
Priority Reservation List
With Priority Waitlist, even if the flight that you requested is fully booked,
you will be automatically upgraded to a higher priority on the waitlist.
Excess Baggage Allowance
A 5 kg excess baggage allowance will be awarded to you whenever you
travel on AirAsia Airline. Not applicable for piece system
Privileges for Theme Parks and Tune Hotels :
Discount will be given 5% for every 30 points earned by customers.
Ruby Card
Privileges for ticket flight :
Priority Boarding
Enjoy Priority Boarding which allows you to pre-board the aircraft at the
same time as First Class and Business Class passengers, even when youre
flying Economy Class.
Priority Check-in
Priority Check-In allows you to check-in for your flight at any available
Business Class and First Class counter, no matter what class youre
travelling on.
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Priority Reservation List
With Priority Reservation Waitlist, even if the flight that you requested is
fully booked, you will be automatically upgraded to priority waitlist status.
Excess Baggage Allowance
An additional 50% excess baggage allowance over and above the
entitlement of your class of travel will be awarded to you wherever and
whenever you fly with us.
Privileges for Theme Parks and Tune Hotels :
Discount will be given 10% for every 30 points earned by customers.
Diamond Card
Privileges for ticket flight :
Priority Boarding
Enjoy Priority Boarding which allows you to pre-board the aircraft at the
same time as First Class and Business Class passengers, even when youre
flying Economy Class.
Priority Check-in
Priority Check-In allows you to check-in for your flight at any available
Business Class and First Class counter, no matter what class youre
travelling on.
Highest Priority Reservation Waitlist
With Highest Priority Reservation Waitlist, even if the flight that you
requested is fully booked, you will be accorded the highest priority on the
waitlist.
Excess Baggage Allowance
Aspire diamond members have an excess baggage allowance of additional
100% over and above the entitlement of your class of travel.
Privileges for Theme Parks and Tune Hotels :
Discount will be given 15% for every 30 points earned by customers.
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4) Term and conditions
1. There is no expiry date for Aspire points earned by customers2. Aspire card must be active within one year.3. This card can only be used to purchase AirAsia products and services.4. If the customers loss their card, AirAsia can imposed charge RM 50
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5.0Procedures1) Select a Pro-tem Committee.
To produce the new customers service cards, two representatives were elected from
each department to work on the proposal. The representatives were chosen to reflect a
true and fair view, unite the Air Asias employees and make sure the project develop
according to the plan. End of the selection period, it was decided to chose
representative from Human Resource Department heading the project.
2) Call for a meeting to select Office Bearers/Club committee.
Staffs in Human Resource Department were called for a meeting to inform themabout the plan to produce the new customers service Aspire cards. The company also
recruits the staffs to work under new group, Customers Care Unit which focuses on
developing the Aspire card.
3) Identify the suitable designs and name for the card.
The company has highlight that the most important part in developing new
Customers Service Card is the design itself. It is a psychological way to attract
customers attention towards the cards. The management has finalized several designs
before proceed with the selected one. In addition, the management also tries to find
the best name for the card. The card was named Aspire which mean hopes or
ambitions toward archiving something.
4) Work up the budget for launching and produce the card.
The company has done with many researches in order to estimate the cost to produce
the Aspire card. The total cost need to be defined first before initial deposit payment
need to be paid by the company. With that, the monthly expenses also can be
obtained. The costs allocate need to be including the administrative cost, advertising
cost, selling and distribution cost and also other related expenses. Besides, the
management also has to approximate the cost for the launching ceremony as it need
expose from the mass media to the public.
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5) Drafting terms and conditions of the card.
Customers always right. So, to maintain the customers right without any problem in
the future, the company has already developed the terms and conditions of the Aspire
cards. With that, the customers will know the limits on using the Aspire cards. In
addition, the customers will be more responsible of the Aspire card; as such the
Aspire cards must be active within one year.
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6.0Budget
ITEM QUANTITY
COST PER
UNIT
(RM)
TOTAL
COST
(RM)
Cost of product creation
1) Variable cost > 30,000 5.00 150,000
Launching expenses
1) Launch day 10,0002) Launching team (working/hour) 12 hours X
50L
20 12,000
3) Rental place for launching ceremony 20,000
Other Expenses
1) Printing expenses(A4 Brochure Printing)
300,000 0.08 24,000
2) Utilities (per month) 12 5,000 60,000
Advertising expenses
1) Electronic Media (40 seconds/each) 30 spots 1700 51,0002) Reading Materials Newspapers (white and black/weekly) 52 900 46,800 Magazines (colour pages/monthly) 12 5,000 60,000
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Marketing and selling expenses
1)
Utilities (monthly) 12 3,000 36,000
Administrative cost
1) Labour cost(6hours X 5days X 52weeks)
1560hours X
50L
10 780,000
Total Cost 1,249,800
Initial Payment 1,123,300
Monthly Payment 11,500
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6.1 Advertising Policies
The new service of AirAsia will be advertised according to below:
1) Advertising in mass media.
As the company has set up a launching ceremony, so the new service can we advertise
in various medium after the press launches ceremony. There are a lot of mass media
approaches that can be used. As an example: newspapers, business magazines,
advertise in television, business directories and etc. Other than that, we also can
advertise using the billboards.
2) Advertise in our own magazines the 3 sixty.
As the Air Asia already has their own in-flight magazines, we can use this advantage
by introducing our new customers benefit service in business segment. With that, we
can show the collecting points rates and the product that can be redeeming by using
the collected points. In addition, we can provide catalogues to show the product thatcan be redeem using collected points.
3) Advertise at the airport.
Air Asia not only advertises the new customer services in mass media but also with
their provided facilities. As an example, on the airport they can promote it at the
screens that show the travel destination. In addition, they also can use in seat in-flight
entertainment screen in the airplanes.
4) Advertise in digital marketing.
As we all know, digital media is one of the most favourable medium that preferred by
people today. So, one of the initiatives is advertise by using company websites. Other
than that, the company can use social application such as Facebook and Twitter to
promote the advantages that can be obtained by the passengers using the collected
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points. If there is any promotion regarding the redemption, it also can be announced
here.
6.2Launching Strategies
As the company already has the partnership with several hotels, so the launching ceremony
will be held in the selected hotel.
For launching ceremony in Malaysia, the company already chooses PARKROYAL Kuala
Lumpur, Kuala Lumpur.
For launching ceremony in Asian county, the company already Bangkok as there is numerous
number of flight to the county. So, with that Air Asia will have a lunching ceremony in JW
Marriott Bangkok Hotel, Bangkok.
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7.0Limitations
1.
There are stiff competitions between other airline companies and AirAsia inMalaysia.
In order to adjust with the stiff competition in the airlines business, airlines industries
tend to come up with various businesses models and business new strategies to be
competitive. Airlines adopt strategic model to expand their market reach as well give
better and satisfying service delivery to their target market. Besides, they also need to
come out with new attractive product.
2. There are limited destinations in launching Aspire Card.Even though AirAsia is one of the established companies, there is also limited
destination in launching the new card in other countries. It is because the number of
flight travelled in certain routes is not as much as any popular destination. With that,
the company has to decide for make a launching ceremony in popular destination
demand by the traveller.