A Marketing Analysis Of Air Asia Marketing Essay

A Marketing Analysis Of nervous strain Asia Marketing EssayIn vagabond to make true that the slogan of Now Everyone Can Fly, Airasia had launched moo F be Campaign in redact to win the customers to fly with a natural depression cut. The objectives of this parkway are to reach unwrap pathetic fares to customer to travel and offer discounts to the public in order to promote more heap to fly with Airasia. Moreover, this go away bakshish to vernal-fashioned market entry of first off- clock make use ofr. (Thestar, 2007)2.0 Airasia Market analysis2.1 PESTEL analysisPolitical factorAirasia air lane had planned to build a new single-runway airport in Labu, Negeri Sembilan with the Sime Darby in 2009 and been approved by the government. However, the plan has been plundercelled due to the Stated-owned Malaysia Airports had move to stop to build the new terminal and disagreement with former tiptop Minister, Tun Mahathir. (Flightglobal, 2009)Economic calculateIn 201 0, Malaysia Government had introduced one government insurance which is 10 Malaysia Plan to the public in order to unleash the harvest-festival of economic. The Airport development is one of the plans as Malaysia Government expects the passengers amount will change magnitude to 62 million in 2015. A new first gear appeal terminal will be built by the in Kuala Lumpur International Airport for Airasia and has larger terminal. (Midfresearch, 2010)Social Cultural FactorMalaysia is the estate which has 3 ethnics and the cultures are unmatched. Airasia believes that the communities are expecting that the air hose arouse treat either ethnic equ tot eitheryy. In order to do that, Airasia is practicing the meritocracy culture whereby the employees hired not based on the age and ethnic. (Airasia, 2009)Technological FactorAirasia has implemented schooling technology in running the operating rooms of the airline to save the be. The learning technologies that implemented are yield m anagement system and computer arriere pensee system. The systems washstand serve well the airline to save the appeals by recording on revenue and transactions in daily operations. (Management of Technology, 2009)Environmental FactorAirasia has invested in the la canvas technology and full utilization of the aircraft in protect the environment and A320 airbus which is more efficient to operate and more save kindle is used. Airasia ticketless system and near paperless office are the strategies to cut down the prodigality of paper. (Airasia, 2009)Legal FactorIn order to operate in Malaysia, Airasia essential apply the Air Service License from the Malaysia Civil Aviation. The regulations such as Civil Aviation Act 1969 and Aviation Offences Act 1984 must be followed. (Airasia, 2004)2.2 SWOT analysisStrength AnalysisLow Cost newsboy business model is one of the strength of Airasia in order to fence in the airline industry. The game is Airasia has a very strong kind with the go vernment and the airline industry leaders. The tertiary is well established of tag name in Asia Pacific. (Management of Technology, 2009)Weakness AnalysisThe Airasia main weakness is the airline more reli adequate to(p) on the out sourcing workforce. The separate weaknesses are the improvement resource is limited and the airline is receiving many complaints on the no-refundable of the ticket tushceled and the stop of rush. (Management of Technology, 2009)Opportunity AnalysisThe first opportunity is the ever-increasing oil price which enables Airasia to fight with some other low cost airline. (Management of Technology, 2009). ASEAN Open Skies agreement that acquired which is allows Airasia to run unlimited flights among ASEANS regional is as well as an opportunity. (Wong, 2009)Threat AnalysisThe first threat is the function rates (airport departure, security charges) are controlled by the airline. The other threats are other entrance of low cost airline and the operatio n cost is increase due to the go that added. (Wong, 2009)2.3Trend and Current Position2.3.1 Airasia TrendIn 2009, the low-priced newsboy airline that established well had proved that has sufficient former to operate across the region in disparate market and economic. Airasia airline is the fast-growing and profit earning steadily airline which had increased the profit for the past. Airasia is also able to grow the market share in the Southeast Asia and had introduced the low-cost long-haul carrier whereby lowlife offering the passenger cheaper fare. Airasia has started to have partnership with other low cost airline to reduce the airline operation be such as ground-handling services. (Flightglobal, 2010)2.3.2 Airasia and Competitors Current PositionIn Malaysia, the main competitor of Airasia is the Malaysia airway System (MAS) which is Malaysias National Airline. In order to compete with Airasia, MAS had launched the first low cost airline which is Firefly. The airline is t he establish-bed in running low-cost operation. In March 2007, Malaysia Airline System had launched the first community and low cost airline which is Firefly to compete with other low cost airline. The Firefly airline is the test-bed of Malaysia Airline System in running the low-cost operation instead to test for new market segmentation and the Malaysia Airline System will adapt and expand it into national carrier if the operation of Firefly is proven success and gain stability. (Datamonitor, 2008).Due to the existing of new competitor, Airasia Malaysia has 2 competitors in Malaysia. However, the prices of airline ticket in Airasia is the main favor and able to maintain current position as low-cost carrier. bad-temperedMalaysia AirlineAirasiaFireflyAirfareNonRM15RM130Service ChargeRM9NonNonSurchargeRM76RM47.50RM51TotalRM85RM62.50RM181(Prices coincidence for one person one way ticket to Pulau Langkawi during promotion)(Reference Amdtaufik, 2008)3.0 Objective3.1 hearive Objectiv eThe first objective of Airasia is to perplex the largest low cost airline makeup in Asia by provide services to 3 one thousand thousand people.Second objective is to attain with the lowest cost and lead to everyone can fly.The third objective is to maintain the product quality and reduce the costs.3.2 parley and Marketing ObjectivesThe first conference objective of Airasia is to promote the organization, services and products by the efficient colloquy program to the customers.The second objective is to make sure that there is a communication descent amid the Airasia and the customers and the relationship can be strengthen through the effort awareness and brand reputation.The third objective is to expand the communication and media strategy in order to pretend brand or product awareness to the customers in order to achieve the organization goal.The finale communication objective is to maintain the good relationship with the customers and keep updating customers with org anization breedings.(JobDB, 2011)4.0 Marketing Communication Tool Low Fare Campaign4.1AdvertisingIn order to top with the prey audience, Airasia is employ advertising as a tool in introducing the products and services. One of the distinguished advertising media that frequently used is the complaisant media. The advantages of utilize social media are the internet enable the interactional capabilities, high selectivity by the users and the cost is low.In Airasia, the organization strongly agrees that social media is playing an important role in order for the organization to do advertising and build a consumer conclave that contributing trust to brand and value. Nowadays, the internet had made the people able to connect with the whole populace people easily and more time is spending for online. By apply social media, the pass ons of the products and services can be reaching out and able to share out the content of sum effectively. Besides that, the social media is able to provide a channel of communication for the organization to run the activity such as low fare promotions, new product launching and news announcement. Moreover, the social media able to form a communication platform for the Airasia to connect with the people and enable the people to have more understanding on the organization. (Airasia,2009)Airasia had started the corporate blog (www.blog.airasia.com) in 2008 and Facebook (www.facebook.com/AirAsia) in 2009. The military strength and efficiencies of the social media enable Airasia to reach the number of fans and creating a strong relation community. For the community, they are able to get the latest information about the campaign that launched by Airasia through the social media. (Airasia, 2011)Another rule acting of Airasia to run the advertising is victimization the Air home advertising whereby the unique and effective way of advertising can be done to reach all the customers who take the flight. With the new approach of advert ising and more cost saving, the messages can be reaching to large coverage of passengers. This allows the messages of the campaign pointly give with the passenger and can across effectively whether on the ground or in the sky. The advertisements of the campaign can be placed in the railcar boarding pass, the information counter, sales office and on the passengers seats. (Airasia, 2010)Besides that, Airasia use newspaper as advertising media. By using the newspaper, the messages of the campaign can be more flexible to nark to the different coverage of markets and the target audiences are different. The newspaper medias that used by Airasia in Malaysia are Star, blurt Chew Daily, China Press, Berita Harian and others.(Lee and Johnson, 2005)4.2 Direct merchandisingDirect merchandising is an interactive system that can helps the organization to personalized communications between them and the customers. With the help of computer and internet development nowadays, the organization i s able to run two way communications for their products and services. (Lee and Johnson, 2005)In order to increase the awareness of the organization to the customers, Airasia is using direct market in order to encourage the interactions between organizations and allow users to be more understanding on the brand. One of the direct merchandising tool that used by Airasia is the bumpkin Mobile. Airasia is promoting and sending the messages to the customers by using other website.Airasia has corporate with Yahoo Mobile whereby the organization allows Airasia lively website to put the banner advertisement on the Yahoo mobile homepage, rube mail and yahoo search. The mobile users just imply to access to the Yahoo Mobile and click to the Airasia banner, the link will automatically connect to the Airasia Website.By this, the customers can book the flight tickets, checking the ticket booking status and access to the promoting campaign. These services and information assessment through mo bile technology has lead to the increasing in awareness of the organization and campaign promotion.Moreover, this direct marketing method had lead to the good responses from the users whereby the total click to the website is 108,405 clicks and the rate is 1.78 percentage after 28days launching. (Mobilemarketer, 2009)4.3 Public social intercourse on that point are many activities that can be carried by the public relation in order to communicate to the related party. In Airasia, one of the activities that carried out by the Public Relation is the Corporate Social Responsibility. The features in this concept are the organization shares the determine and joyfulness in with the related parties. Airasia is celebrating the times of joy with the communities, practicing the communities value and traditions and delivering cares to them. there are few ambit that focused by the Airasia in fondness out this activity. The first area is the organization work place. Airasia is practicing the meritocracy culture and the employees are hired due to their performance and ability. The elements like gender, creed, age and ethic are not considered in the hiring process. By practicing the meritocracy culture, Airasia believe that they can strive to turn over the communitys high expectation and provides equally treatment to all the communities.The second area that focused is helping the communities to pass the hard time. There was an earthquake happened in 2009 and had shocked many communities in Indonesia. At that moment, the Airasia decided to lend a hand and running the charity flight to help the victims to go out from that place. Moreover, the Airasia in Malaysia is also helping out in providing the cargo space to deliver the goods for the victims. Airasia always help the victims of disaster and providing joyfulness and hope to them.The last area that focused is minimizing the environment impact in creating greener environment. The first issue Airasia do is promoting the recycle concept to the work place environment and encourage paperless system office to be run. Moreover, self service check-in options is advance by the organization in order to helps in reduce the need for expensive airport infrastructure. The efficient and simple ground environment is the main policy in protecting the environment. (Airasia, 2009)5.0 Airasia Marketing Strategies5.1 Pull and Profile dodgeAirasia is using the Pull Strategy to deliver the low fare campaign information directly to the end-user customers. The purposes of the messages delivered are to increase the campaign awareness, encourage the customers stake and to influence the customer lore. By these, the customer behavior and perception may be changed and lead to the purchasing of the products. Moreover, Airasia use this strategy to encourage and draw the customers to purchase airline through the website channel. For Airasia to complete and deliver the pull strategy, the method that use can be deliver the me ssage through the social media or website by offering the low fare promotion to the customers. (Fill , 2006)Airasia is using the Profile Strategy which is using different messages in target all the stakeholders that related. The stakeholders of Airasia are customers, employees, regulators and the local communities. This strategy is including the pull selling which is requires high promoting to attract the customers and push strategy which is forces from the organization to increase the customer demand. By using this strategy through different marketing communication tools to deliver different message, Airasia is able to build up the awareness of the low fare campaign and the perception of communities toward the campaign. (Fill , 2006)5.2 Unique Selling PropositionsIn order to be unique selling proposition, the strategy that used by Airasia is low cost carrier and has come out the vision of in becoming the largest low cost airline in Asia and makes the dream of average income people to fly happens. The slogan that implement for the strategy is Now Everyone Can Fly whereby the tickets prices are lower. To become differently from others airline, Airasia has implementing few strategies in order to make sure that the low fare model is possible to run.The first strategy that Airasia apply is the sentry duty First strategy on the maintenance of the airplane. The organization is follow the others world airline operation safety strategy and partnering with the worlds recognize repairing and maintenance manufacturer.The second strategy is the High Aircraft Utilization where the Airasia implementing the fastest turnover time in make sure the cost can be lower and productivity is high.The third strategy is low fare and no frill whereby providing the services without promises on the quality.The last strategy is providing more different distribution conduct such as Airasia Mobile and booking website for the customers to check the booking and the flight schedule informati ons.(Airasia, 2010)6.0 Airasia Communication Campaign Cost OutlineCost20082009 receiptsRM 2,81,526,000RM3,072,049,000Marketing Communication Campaign Cost (Avdertising, Direct Maketing and Public Relation)RM 5,630,520RM 61440980(Reference Airasia, 2009)Airasia is using 2% of the yearly avenue to invest in the marketing communication campaign in order to create awareness of products and services among the communities. (Low, 2010) The costs that spend for 2008 are RM 5,630,520 and RM 61440980 for 2009.7.0 Methods of measuring the effectiveness of the marketing communicationThere are few methods that Airasia can use to measure the effectiveness of the marketing communication in the adjust Fare Campaign. The first method is the Pre-Testing whereby the marketing communication concept, targeting group and behaviour are pre-test before the launching of campaign. This test can be done by the qualitative and quantitative method which is giving out survey forms and collect opinions.The secon d method is Post-Testing whereby the effectiveness of marketing communication is evaluated after the campaign launching. Airasia can use the behavioral test to measures the responses and perception of consumer on the marketing communication after Zero Fare campaign was launched. Moreover, Airasia can also use the sales test which is the measures on the sales and then will get result on the marketing communication effectiveness.The third method is Tracking Studies which is the study is involves the accruement data of the consumer perception toward the campaign. Airasia can use the interview method to collect the data of consumer perception on the marketing communication of the campaign and what message that gets from the campaign. By this, the organization is able to more understand on the consumer perception and a good record for future marketing communication plan.The fourth part method is Likeability test which is testing the level of consumer enjoyment on the marketing communic ation of the campaign. The result will lead to the sales result and the consumer gratification result.(Fill, 2006)Total word count 2986 words