Air Asia Marketing Analysis

Post on 15-Jul-2015

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"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