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Askari Aviation Marketing Service Report
 

Askari Aviation Marketing Service Report

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    Askari Aviation Marketing Service Report Askari Aviation Marketing Service Report Document Transcript

    • ASKARI AVIATIONAskari Aviation, a subsidiary of Pakistans Army Welfare Trust, wasestablished to provide quality services in the field of aviation to privateand public sector. It is manned andoperated by retired Aviators from PakistanArmy Aviation, who have operated inNorthern Areas of Pakistan throughout their careers and providedevacuation services to mountaineers.This Rawalpindi-based operation, established in 1995, is dedicated tomaintaining and operating aircraft/helicopter consistent withinternational standards. Askari Aviation offers to co-ordinate andgenerates necessary financial resources or enters into joint venturesatisfying specific requirements of its client.It is backed by Pakistan Army Aviation,which has over thirty years of operationalexperience in the northern areas with routine landings. The bases aresituated in Lahore, Peshawar, Chaklala and Chitral. Its Head Office islocated in Chaklala, Rawalpindi. 1
    • OBJECTIVESAskari Aviation has three main objectives: • Providing Job Placements to Retired Aviation Officers The prime reason of the Aviation’s existence is to provide job opportunities to those particular retired army aviators who are jobless after they leave the army. As the area of expertise of the retired army officers’ was flying helicopters and planes, it became nearly impossible for them to find jobs after they had been relieved of their military duties. Therefore, Askari Aviation employs these retired aviators as they finish their tenure. • Earn Revenue for the Army Welfare Trust Askari Aviation operates with a motive of earning as much revenue as possible and handing it over to the Army Welfare Trust after deducting 5% service charges. • Promotion of Adventure Tourism in Pakistan Askari Aviation is engaged in boosting helicopter-based adventure tourism in Pakistan. The Army has given the Aviation the right 2
    • to use its helicopters and aircrafts for transportation of tourists.TYPE OF SERVICE OFFERThe service can only be evaluated through experience as theproduction and consumption cannot be separated. The description ofthe service is as follows:Askari Travel and Tours • Helicopter Safaris At present, Askari Aviation is primarily engaged in providing quality aviation services of helicopter for adventure, safaris, rescue, crop dusting and cargo 3
    • transportation. Askari Aviation provides Helicopter Safaris to the most magnificent ranges in the world: the Karakorams, the Himalayans, the Hindukush and the Pamirs for vacation and adventure. The Safaris include the following: o Fly o Fly and Hike o Fly, Drive and Trek In addition to this, the safaris can be customized to suit the needs of the customers. For instance, on a safari from Skardu to K-2, the customer may choose if he wishes to undertake part of the journey by foot or travel in a car or fly the whole way.• Rescue Services Askari Aviation provides rescue facilities, especially to mountaineers and trekkors in the northern areas while ensuring minimum response time with optimum effectiveness. Since the pilots (retired aviators) have flown in these 4
    • areas, they know the place and have had adequate training to render these services. To provide the rescue operations, Askari aviation is backed by a fleet of Pakistan Army Aircraft. Helicopters required for rescue are positioned by Army/Aviation in general area of mountaineering expedition area of activity, to achieve desired response time. Their core elements include as follows: • The knowledge of all pertinent information of mountaineering expedition of Pakistan along with the activities going on in the respective areas. • The strength of the rescue teams, experience and the physical conditions the teams are actually carrying with. • Whether the rescue teams are carrying with them the relevant equipment that is, markers. Windsocks, smoke grenades, communication sets, and information for the rescue operation.There are some rescue conditions that have to be met. Firstly, theteams visiting Pakistan as per government policy will be required todeposit of US$6000/= or provide guarantee of respective embassies toAskari Aviation to clear the dues within 7 days. This is regard to the 5
    • presence of foreign teams in Pakistan if they want to avail AskariAviation helicopters for rescue purposes.Askari Aviation will give detailedbriefing to all the teams on arrival onrescue services and issue a kit, holdingminimum essential equipment forguidance and reception of helicopter in emergency. Intimation on allthe teams covered for the rescue services with their areas of operationand peak days of activity, will be intimated to rescue centers in Gilgatand Skardu by Askari Aviation.Say in the case of any emergency, teams must quickly intimatethrough quickest means to any of the person with much detail:• Deputy commission Skardu• Deputy Commission Gilgat• Deputy Commission Chitral• Army aviation Squadron, Skardu.In addition to that, the teams must clear their bills before leavingPakistan and return the security kits back to the Askari aviation. Inaddition to this there are certain constraints that if the rescue heightsare above 4000m, and then they are mandatory to carry helicopters inpairs due to the lack of communication facilities in the Areas. 6
    • 7
    • Askari Charter ServicesAskari Aviation have also started flying international charter bothpassengers and cargo, particularly to Afghanistan. For securityoperations, their teams keep hovering to different regions of NorthPakistan to get familiarized with all regions so that in the case ofemergency, it would take less time to locate the place for the securityoperations.Askari Airport ServicesGround-handling services are also being provided by Askari Aviation.Such services include the coordination and organization of variousCommercial Airlines like Shaheen Airways, and PIA. Ground-handlingincludes the maintenance of aircrafts, repairs and cleaning etc.Although it is being provided on a limited scale and only in Chaklalabase but there is a potential for Askari Aviation to cash on the niche inthe market with this regard and to expand its services to majorinternational airports like Lahore(AIIP) and Karachi (Jinnah terminal).TARGET MARKETAskari Aviation’s target market comprises of the adventurous:foreigners of various countries and Pakistani nationals living abroad.Since the cost of maintaining and flying helicopters is very high, thecharges are passed onto the customers. Thus, a tourist is compelled to 8
    • pay a lot of extra charges for availing this luxury transport. Theseextra value charges can only be afforded by a limited number ofcustomers. This clearly indicates that the organization can only cater toa niche market.The market within Pakistan is extremely narrow due to psychographicfactors. Askari Aviation knows that helicopter services are mostlyavailed by foreigners who are passionate about mountaineering, andare willing to do so under anycircumstances. A similar passionfor this activity is very rare inPakistani citizens and hence theyfeel it is futile to try to cater to alocal market where demand for itdoes not exist.Even if a demand of it did exist, the company prices are so high thatare unaffordable for a local. So affordability is another issue amongstPakistanis. This is because the prices charged for various safariexpeditions are so high (almost $10,000 per expedition) that Pakistanis(even if belonging to the upper middle class) cannot afford theirservices. The company is well aware of this fact, so they target only a 9
    • foreign market or Pakistani nationals who live abroad as onlythose individuals can afford their services.BENEFITS TO TARGET MARKET • Time Effectiveness One of the major benefits of their service is the efficiency they provide with minimal time wastage for a tourist who has to reach a certain destination. If a similar mountaineering expedition is to be carried out by road, it would take many more days to reach the destination. In addition to this, the discomfort of carrying heavy luggage and the need for porters and guides to lead the expedition only causes more frustration and exhaustion of mountaineers who wear out even before they reach their destination. A walk on the glaciers to Skardu will take 20 days along with 100 porters to carry the necessities (tents, supplies and belongings). • Quality and Comparative Cost Advantage over Road Travel 10
    • Road transportation ends up being more expensive than their service. The cost turns out to be greater as porters and vehicles are needed for travel.Tourists prefer to choose this service as a means for their expeditiontransport as it is not only reliable but also greatly reduces their timeand physical effort wastage. The benefits provided by the service areattractive as all other alternative modes of transportation lead to a lotof time wastage and tourists who are normally short on time, prefer tochoose this service as they are aware of its efficiency andeffectiveness.Although Askari Aviation offers no specific loyalty to programs to repeatcustomers and charge fixed rates to everyone. Albeit this, theorganization get repeat customers who are always willing to avail thisorganization’s services. This shows that the target customers do findthe benefits being provided to them as attractive and worthwhile. 11
    • POSITIONINGAskari Aviation has been positioned as a premium and high qualityservice. It provides a unique service in Pakistan through its helicoptersafaris. It faces no competition in the country so it enjoys a monopolyposition. There is flexibility in consumption but not in production.LIFE CYCLEThe service offer is at the growth stage because the demand for theservice is still increasing. The company is recognized as a qualityprovider of helicopter safaris. Though it faces no competition at themoment, the company has a repeat purchase behavior from customers. 12
    • BASIS OF PRICINGThe pricing has been done keeping in view the very high costs of flyingand maintaining helicopters and aircrafts. Therefore, Askari Aviationadopts cost-based pricing. According to customer perception, AskariAviation offers high quality service. Customers are interested in theprestigious services the company offers and price is not a primaryconcern of customers. So the company adopts prestige pricing.PRICING STRATEGYType Engines Seats Cargo(Kgs Altitude US$ per at US$ ) hour per Hour Limitation (Sling Ops)Mi-17 Two 22 3,000 5,000 M 3,036.00 3,174.00Puma Two 18 1,500 4,000 M 3,036.00 -Bell-412 Two 10 - 3,000 M 2,139.00 -Ecureuil One 3 1,500 6,000 M 1,697.00 -Alt-III One 4 - 4,500 M 1,697.00 -Lama One 3 - 5,500 M 1,697.00 1,835.00UH1H/AB- One 8 - 1,500 M 1,697.00 -205Jet One 3 - 2,500 M 1,697.00 -RangerSchweizer One 1 - 1,000 M 511 -JPC Two 6 - Runway 2,498.00 -G.E 421 Two 4 - Runway 1,160.00 -Y-12 Two 14 1,000 Runway 1,794.00 -MFI-17 One 1 - Runway 345 - 13
    • The above mentioned prices have been set in accordance with therules and regulations laid by the Ministry of Defence itself. Although,the pricing is unsuitable for local or national customer; but with regardsto International adventurers and tourists, it is nominal and competeable to international service providers. 14
    • DISTRIBUTION NETWORKAskari has its bases in Lahore,Islamabad, Peshawar, Chitraland Skardu. Its marketing andsales office is located inRawalpindi and so is itscorporate office in AWT plazaRawalpindi. It monitors andcontrols its business throughthese offices respectively andthere are no regionaldistribution channels as such,which means that the prospective customer can only avail theirservices through registration and booking in its Rawalpindi based officeonly.COMPONENTS OF SUPPLY CHAINIn Askari Aviation, the major component of supply chain is theavailability of required helicopters and planes at its disposal. Sincethese planes and helicopters are leased out by Ministry of Defence, sopre requisites must be fulfilled in due course to obtain the requiredplanes and helicopters. 15
    • Secondly is the availability of spare parts and necessary equipmentneeded in case of emergency and general repairs is also involved in thesupply chain for Askari aviation. And last but not the least is theAviators themselves. Since no plane can fly without a pilot, and thecurrent turnover of pilots due to commercial planes has made thisavailability considerably difficult job for Askari Aviation. 16
    • PROMOTIONAL BUDGETThere is no promotional strategy that is being followed by AskariAviation as they feel that since they target foreign customers they donot need to advertise. Thus, no specific budget is allocated forpromotions. But the group has devised certain strategies that will helpAskari to promote its services. Such strategies are discussed in therecommendation part of our report.OBJECT OF PROMOTIONThe objective of promotion is to stimulate demand and generate sales.Sales are the lifeblood of a business, without sales there would be nobusiness in the first place; therefore it is very important that if abusiness wants to succeed, it should have a sales promotion strategy inmind. The primary objective of a sales promotion is to improve acompanys sales by predicting and modifying your target customerspurchasing behavior and patterns. This should be realized by AskariAviation. 17
    • TOOLS OF PROMOTIONAs Askari Aviation has no clear promotional strategies, the tools thatthey rely on are: • Word-of-Mouth Askari Aviation believes that positive word of mouth advertises their company. Satisfied customers spread the word around and gain more customers. • Behaviour of Employees The employees who interact with the customers advertise the company’s culture and make it differentiated so that the company retains customers. According to the company management, Askari Aviation receives repeat customers. • Web Advertising Askari Aviation has a website which not only advertises the company’s name but also has options for making online reservations. 18
    • 19
    • BLUEPRINT 20
    • FLOWCHART 21
    • SERVICESCAPESince the service is largely intangible, physical evidence is often acriterion to evaluate the service and predetermine satisfaction with theservice during and after consumption. As the service of Askari Aviationoperates in an interpersonal environment, a cleverly designedservicescape can lead to the satisfaction of both customers andemployees. The servicescape of Askari Aviation largely plays the role ofa facilitator and socializer. Following are the elements encompassingthe servicescape of the organization: Servicescape Other Tangibles Marketing Office Tickets/Receipts Exterior and MealsAskari Aviation Interior Uniforms Base Layout Website Aircraft Exterior Aircraft Interior (Space, Seats, Air Quality)Marketing Office Exterior and InteriorThe Marketing Office of Askari Aviation is located in Chaklala,Rawalpindi. The Office is near the airport and placed somewhatbetween the twin cities. So, the location is conveniently accessible for 22
    • tourists landing at the Islamabad Airport. The appearance of theOffice is not very professional as it is gives a casual impression and canbe easily mistaken for another residence in the area. There is a smallboard at the entrance indicating that this place is their Office. Theexterior can be worked upon by making it more visible anddifferentiated. As far as the interior is concerned, it has a reception inthe front where assistance can be easily obtained. There are picturesand boards showing the quality of service and instructions for theprocess. However, the arrangement is again mediocre and should berevamped by keeping a specific colour combination, uniform furnitureand orderly arrangement of pictorial display.Base LayoutThe bases are owned and operated bythe Civil Aviation Authority and situatedin various areas of Pakistan to facilitatemovement of customers. The planespresent are scheduled beforehand asper the request of the customers.Aircraft ExteriorThe Aircrafts/Helicopters are of top-quality and impressive looking. Theexterior differs from plane 23
    • to plane but it gives the customer a fair judgement of the level ofquality of the airplanes. The aircrafts are in fine condition and modelswhich are five or six years old are being used.Aircraft InteriorThe interior is not plush as airplanes are but is made to suit the roughand tough. The seats are comfortable with exceptional air qualitymaintained. The space differs from aircraft to aircraft.Other Tangibles: Tickets/ReceiptsThe ticket/receipt is obtained from the Marketing Office on payment.MealsAskari Aviation provides on-board services which includes a tangiblecomponent of meals. The meals are of adequate quality.UniformThe pilots are required to dress in a properuniform. This shows the level of indulgencethe organization shows in making itself looklike a uniform unit and thus is takenseriously by the customers. 24
    • WebsiteInternet sites are a part of the servicescape as they give a virtualexperience to the service because it is actually consumed and thusgives a platform to evaluate the service. The service description,service offers and instructions for application and payments can beexplicitly displayed.SERVICE GAPGaps tend to come about for a variety of reasons, including:  Legal restrictions that may preclude a particular service--e.g., in some countries, only certain stores are allowed to sell specific kinds of merchandise, and, having a monopoly. 25
    •  Existing firms have not provided as high level of service as desired, and consumers either demand more service to buy the product or would pay more to have the improved service or would like the firm to reduce its current prices as per the respective demographics.Askari aviation faces a major service gap mainly because of itsmonopoly with regards to its existence as the only service provider ofhelicopter safaris and secondly due to its high fare rates that tend tofend off local tourist or adventurers.We found that company driven service gaps are more affecting theoverall service segment rather then the customer driven gaps.Although there is a larger customer base in Pakistan that would like toavail such service facilities but the potential bottle neck arises on thevery first step of service i.e. service charges. Keeping in mind theservice charges it is difficult for even the most influential Pakistanis toavail such facility for leisure and adventure. Second bottle neck that wefound and tends to create a service gap in itself is the lack of AskariAviation to promote itself internationally as a major and only serviceprovider in Pakistan and various other international destinations for UNbased purposes. Focus based marketing is necessary to promote Askariabroad so that to attract foreign tourist and adventurer to Pakistan. 26
    • This will help to promote a softer image of Pakistan and will helpto boost the tourism industry of Pakistan as well.OPERATIONAL PROCEDURESThe operational procedures of Askari Aviation have been elaboratedearlier in the service blueprint. The service is characterized as a highcontact service where moments of truth evaluate the quality of service.Askari Aviation provides a service which is flexible in consumption ascustomizedpackages can beavailed but there isno flexibility in 27
    • production as a customer has to visit their office and base toexperience the service.The operational procedures are structured with respect to timingschedules. These schedules are follows: 28
    • TimeChartPlaces Y-12 Lama Alt-III J/R & Mi- UH-IH GE JPC 17Abbottabad - 0:30 0:30 0:28 0:34 - -Bannu 1:00 1:25 1:25 1:22 1:30 0:55 0:35Bahawalpur 2:15 2:50 2:50 2:40 3:00 1:50 1:10Cherat - 0:40 0:40 0:40 0:45 - -Chitral 1:15 2:15 2:15 1:50 - 1:10 1:00Changa - 2:20 2:20 1:35 2:20 - -MangaD.G. Khan 2:20 3:10 3:10 1:32 3:10 1:06 0:42Faisalabad 1:00 1:25 1:25 1:20 1:30 0:55 0:35Gilgit 1:45 3:00 3:00 2:30 - 1:30 1:00Hunza - 3:45 3:45 2:45 - - -Jhelum - 0:35 0:35 0:32 0:38 - -Kharian 0:25 0:40 0:40 0:38 0:43 - -Kamra 0:10 0:25 0:25 0:24 0:28 0:17 0:12Kohat 0:40 0:55 0:55 0:53 1:00 0:33 0:32Khairpur - 5:20 5:20 2:25 5:20 - -Karachi 15-May 7:15 7:15 6:45 7:15 3:30 2:45Khunjerab - 5:00 5:00 3:45 - - -Lahore 1:00 1:28 1:28 1:25 1:37 1:00 0:38Mangla 0:20 0:30 0:30 0:29 0:34 0:18 0:14Muzaffaraba 0:45 0:40 0:40 0:38 0:45 - -dMiawali 0:45 1:00 1:00 0:56 1:05 0:40 0:26Multan 1:30 2:30 2:30 2:10 2:30 1:32 1:00Okara 1:15 1:45 1:45 1:42 1:58 1:12 0:48Pasrur - 1:15 1:15 1:10 1:20 - -Peshawar 0:45 1:00 1:00 0:58 1:05 0:37 0:25Parachinar 1:15 1:40 1:40 1:35 1:50 1:08 0:45Qetta 3:00 5:00 5:00 4:30 5:00 2:45 2:00R.Y. Khan 0:40 0:50 0:50 0:48 0:55 0:34 0:25Risalpur 2:57 3:00 3:00 3:20 4:00 - -Rahwali 0:45 1:00 1:00 1:00 5:00 0:42 0:28Sargodha - 1:10 - 0:56 1:05 0:04 0:26Shorkot 1:15 1:45 1:45 1:42 1:58 1:12 0:46Sialkot 1:15 1:05 1:05 1:03 1:10 - -Sakardu 2:10 3:30 3:30 3:00 - 2:00 1:10Sulimanki - 3:00 3:00 1:56 2:50 1:25 -Sakhar 3:35 5:00 5:00 4:15 5:00 2:30 1:45Swat 0:45 1:15 1:15 1:00 1:15 0:50 0:35Terbela - 0:25 0:25 0:23 0:26 - -Taxila - 0:15 0:15 0:14 0:15 - -Wah - 0:20 0:20 0:18 0:22 - -Zhob 2:15 4:15 4:15 4:00 5:00 1:30 1:15 29
    • All these service deliveries are made with respect to the abovementioned schedules and are complimented to weather conditions aswell as availability of aircrafts or helicopters.SERVICE RECOVERYThe goal of service recovery1 is to identify customers with issues andthen to address those issues to the customer satisfaction to promotecustomer retention. However, service recovery doesnt just happen. Itis a systematic business process that must be designed properly andimplemented in an organization. Perhaps more importantly, theorganizational culture must be supportive of idea that customers areimportant and their voice has value.Research has shown that customers who have had a service failureresolved quickly and properly are more loyal to a company than arecustomers who have never had a service failure -- significantly moreloyal. Service Recovery practices are a critical element in a CustomerLoyalty Program.1 http://www.greatbrook.com/service_recovery.htm 30
    • One way to think about service recovery is that it is a positiveapproach to complaint handling. Complaint handling has seriousnegative connotations; whereas, service recovery has positiveconnotations. Complaint handling is placating people, minimizing anegative. Service recovery practices are a means to achieve thepotential, latent value a customer holds for a company by fostering anongoing positive relationship.Service recovery has a secondary value. It creates positive word-of-mouth about your company and minimizes the bad spin that lack ofservice recovery practices can create.Askari Aviation provides a full recovery to its customers if they canceltheir reservation 48hours before scheduled service. They also providecompletely free rescue services to its clients in case of an emergencyas is covered under the respective insurance plan. This helps toimprove the customer relation of Askari and tends to improve itsinternational market image.SERVICE DESIGNThe service has a high intangibility aspect in it; it is a high contactservice. The indirect interaction takes place between a customer andAskari Aviation through the internet, then direct interactions with the 31
    • employees at the Marketing Office and Bases and on Aircrafts.The factors affecting the design are: • Performance of Employees The helicopter service is heterogeneous since it involves production and consumption simultaneously. No two experiences by customers are alike as there is a substantial input from the employees (pilots) and their levels of performance can vary. • Weather Conditions The weather can affect the helicopter’s movement and thus the optimum service experience it can provide. Weather conditions are an uncontrollable factor affecting the service design. • Intangibility Since the helicopter is primarily an intangible experience, it can not be guaranteed that the same level of service is provided every time. Although the perceived service should meet the expected service, however there can be variability in the service provision due to the intangibility aspect.RECRUITMENT POLICY 32
    • Since Askari aviation is managed and operated by retiredaviators from Pakistan Army Aviation who have served all along themajor tenure of their careers working in the northern areas of Pakistan,so the total working force of Askari aviation is just a meagernumber i.e. 700 people approximately. The reason being the factthat in case of the pilots, they mostly take people from Army Aviationand segment further to those who have either spent most of their timein northern areas owing to the special handling expertise of thehelicopters and planes that they owe for their services. Apart from thatthey, also take people from commercial flying clubs but their selectioncriteria are fixed i.e. they require a completion of specific no. of hoursand then they take test flight for certain hours and after strong andrigorous process of inculcation, they are selected on the efficiency andeffectives of the pilot’s complete handling of the plane. This is due tothe nature of service that they provide, rescue and recreational, theycannot afford to have inefficient people for their plane operations.HIERARCHY OF MANAGEMENTIn case of their lower level management, that includes the ground staffhandling people, the technicians required for the planes, data analyst,they are kept on the contract andthe permanent basis. In regard tokeep their performance level up to 33
    • the standard, they are given quarterly and annually trainingprograms that ensure co inculcate them with the latest information ofplane handling especially for the technicians and senior planemanagers. For the people who work in control room, they are givenspecial training for helicopter takeoff and landing positions, especiallyin the case of some emergency. Apart from that, the total workingpopulation of Askari Aviation including their all employees is reviewedby AWT annually to ensure the numbers of people are proportionatewith the number of tasks in Askari Aviation.The top management enjoys perks of house allowance, car, insurance,medical and utility facilities given by the ministry of defense. Apartfrom this, they also get 5% share from the total profit that theygenerate from their services before giving the amount to the ministryof defense. Manager takes 35000-40000/= salary and along with someadditional benefits. Thesalary figures change with respect to the difference in the location oftheir offices. In general, since it’s a subsidiary of AWT, the salarystructure of their employees is chalked out by them.However, they keep on revising their salary level owing to differenteconomic conditions say inflation etc.AGES OF EMPLOYEES 34
    • With regard to the ages of employees, the top level managementis average aged between 45-60 years of age (the figure can vary owingto the experience owned by the people), In regard to their lower levelmanagement, they don’t have any fixed criteria as far as the ages areconcerned, its just that the people they take have to be competentenough, come up to their selection criteria and other pre-requisites.Age level varies with respect to the different in the tasks that they owe.CAREER PROGRESSIONIn Askari Aviation, the major portion of employee is formed by retiredarmy personals. These personals are already trained and most of themhave significant job and technical experience attained from theirprevious job in army already. This helps such employees to attainhigher and immediate progression in Askari Aviation and variousrelated branches of Askari Trust. Besides that, civilian employees areprovided the opportunity to progress themselves through varioustraining and skill development programs. Major one is the FOO and FCOtests for licensing of an Aviator and ATC for air traffic controller exams.Such career progression not only helps to motivate employees but alsohelps them to further their career in commercial aviation as well. 35
    • EMPLOYEE RETENTIONIn case of employee turnover and retention ratio, the employees ofAWT are employed on both contracts and permanent basis. The rulesand regulations governing the employee job concern are held by AWCitself. The turnover of employees in the Askari aviation is low becausefirstly, few numbers of people get themselves employed with Askariaviation though the selection is still competitive; secondly, all measuresare taken to ensure the employee satisfaction. Many incentives aregiven in this regard that includes Umrah, allowances of education,medical insurance etc. The job contract signed by the employeesclearly demonstrates the rules and regulations of the company. Thecompany employees have to be well educated in field of aviation andaeronautics. This whole process is carried out by the selectiverecruitment by the selection committee of AWC.The flying and maintenance crew is based on highly qualified,experienced professionals from the Armed Forces of Pakistan. Thisoffers highest quality of service and safety standards, ensuringcommitment to professional excellence. As a disciplined organization,they perfectly understand essence of responsibility and importance oftime. Their personal experience, therefore, will be of immense value tocoordinate between mountaineering expeditions and Army Aviation, toachieve the objective with desired results. 36
    • According to the service profit chain, satisfied employees are capableof delivering top-quality service which leads to profitability for theorganization. E py moe l e R et n e no t i I tr a n n e l E py moel e S ve ei rc S i f co as t n t ai Qa y ui lt E py moe l e P dcvy r uii o t t 37
    • S.W.O.T.STRENGTHSMonopoly PowerOne of the major strengths that this organization is banking on is thefact that currently it faces no competition and is one-of-the-kind in thecountry. There is no other organization in Pakistan that providescustomers with a similar service so Askari Aviation enjoys a completemonopoly. 38
    • Financial BackingAnother factor that is strength for them is the fact that they are being financially backed by the army and all their day to day operational costs are being paid for by the Pakistani army. This backing is a reassurance for the organization as theyknow that at the end of the day all they will be reimbursed for all theirexpenses. The helicopters being used for the service also belong to thearmy so their maintenance and running costs are a burden for thearmy, instead of this organization.No Training CostsAskari Aviation enjoys the fact that they do not have to spend anymoney to train pilots, which is a very expensive training, as theiremployees consist of retired aviators that are already trained by thearmy to fly helicoptersWEAKNESSES 39
    • High FareThe fact that Askari Aviation is forced to charge extremely high pricesfrom its customers is a weakness for the organization as it limits theirtarget market to only a few individuals in the country. This limits themto target their services to only a niche segment in the country who canafford to pay the high prices they charge. The niche that they do targetis through the means of internet or placement of brochures in luxuryhotels. The organization does not indulge in mass advertisement asthey know that the niche they target can be easily catered throughthese means and till now a need has not arisen for them to indulge inany sort of large scale promotional activities.Lack of Promotional Activities 40
    • As the organization does not promote itself on a large scale, notmany people are aware of is existence. Although the organization’semployees assert that they do not promote themselves as the pricesthey charge are too high for most of the people to pay, it is believedthat it is still a weakness that the organization is not promoting itself.We feel that the organization should promote it self in any case as itmight attract some more potential customers who have enoughresources to avail this service but dueto lack of awareness are unable to doso.Expensive Spare PartsBesides that the high maintenance and flying costs of the helicopterare, although not being paid by the organization, are still a weaknessfor the organization as these extremely high prices hinder theavailability of any spare parts and the continuity of various processes. 41
    • OPPORTUNITIESIncreasing ExpeditionsAn opportunity for the company is to offer more safaris and travelpackages to unexplored parts of the country. It could offer these travelpackages to different areas in the country as well as to its neighboringcountries. These packages should be offered to visit the exoticlocations within the country which are still unexplored and mightinterest the target customers.Collaboration with Pakistan Tourism BoardAskari aviation has a major opportunity to collaborate its services withPakistan Tourism Board. Such collaboration would be based on mutualinterests with respect to promotion of tourism in Pakistan. Since AskariAviation is focusing primarily on Hiking and Safari trips and due to thefinancial aspect of the offering, its target market is outside Pakistan.Hence collaboration with Pakistan Tourism Board will help to promoteits services abroad and into a wider market segment.In return their services will help to bring more tourists for PTDC andhence improve our overall tourism industry.Provision of Infrastructural Services to other Organizations 42
    • Besides that this service could be hired by large multi nationalcompanies who indulge in various mining activities in the dry andisolated areas of Balochistan or Sindh. As access to these areas isalmost non existent and the infrastructure is in a very deplorablecondition, the organization can use these factors to its advantage andprovide the engineers and employees of these firms, an easy andefficient access to these sights. 43
    • THREATSNew CompetitorsAlthough the organization’s employees say that the chances of acompetitive firm emerging in the near future are minor, this possibilityshould not be completely ignored. It should be kept in mind that theymight have to face competition from another firm in the near futurewho has a cost or technological advantage over them.Loss of CustomersAnother threat to this origination’s services could be loss of customersfrom its competitive firms in Nepal. Although the firm does not facecompetition from any firm within the county, it is facing a competition 44
    • from similar services being provided by Nepalese aviation. Wewere told by Mr. Ilyas that Pakistan has 4 high peaks whereas Nepalhas 10, which mostly attract the tourists to these countries. If Nepal isable to improve its services and provide better services and travelpackages to its customers, they might switch to those services andAskari aviation might loose its appeal to the tourists.Political Situation in the CountryBesides this the political situation within the country is very fragile andthere is a lot of unrest which is prevalent. This could also deter thetourists from visiting Pakistan as they are concerned about their safety. 45
    • P.E.S.T.The macro-environment includes all factors influencing a company thatare not within its control. These include political social, economic andtechnological factors. These are known as PEST factors. A technique ofanalysis of the macro environment is PEST analysis. Since the tourismand aviation industry is very much influenced by changes taking placein the environment and has undergone rapid and dramatic changesduring the last decade, this analysis is especially important for AskariAviation. PEST ANALYSIS Political Social 1. Increased Competition 1. Greater Customer (Deregulation of aviation Awareness industry) 2. Increased Entertainment 2. Political Stability spending. 3. Increased Investment 3. Technology averse opportunity Customers Economical Technological 1. Improved Purchasing Flight Control System Power Fuel efficient helicopters 2. Demand Value-for-Money and planes 3. Soaring Oil Prices Promotion through Internet 4. Reduced Ticket Prices and digital media. 46
    • POLITICAL FACTORSPolitical factors always have a great influence on the way businessesoperate in the aviation industry and the spending power of customers.Governments intervene in the tourism and aviation industry for variousreasons, including:  • It is a major employer and provider of livelihoods. • Transport systems are subject to legislation and regulation. • International tourism flows mean that governments benefit directly from incoming tourists.However, in recent years it has been observed that government playedan active role in increasing competition in the tourism and aviationindustry. A number of new airlines such as JS Air have been awardedlicenses to enter the domestic market. Despite increasing competition,Askari Aviation has maintained a monopoly on national tourism routes.Aviation industry is significantly affected by political stability. Pakistanhas achieved some political stability in recent years. If themanagement of Askari Aviation believes that the presentgovernment will perform well (consistently), then there will be moreinvestment in the form of purchase of new airplanes and latesttechnology. The over all industry will grow resulting in more luxuriousand comfortable flights. With the military takeover government policieshave become more liberal. In the past, Pakistan’s Civil Aviation 47
    • Authority (CAA) played a major role in discouraging newAviation safari providers to enter the industry. CAA had a restrictionthat companies could not operate as safari and charter providersunless they own their aircrafts. This means that new firms will needhumongous investment even to enter the market.ECONOMIC FACTORSCurrently Aviation industry has one local player i.e. Askari Avaiation.Their target market includes foreign travelers and adventurers whotend to visit the extreme northern areas of Pakistan e.g Japan,Germany, Sweden, Korea, USA, UK and lots more. These countrieshave strong economies coupled with high purchasing power.Customers’ purchase behavior depends very much on prices of thecompeting airlines as well as services offered. As inflation rate is stablein Pakistan, spending power of consumers is not effected in the longterm. In fact growth in Pakistani economy has resulted in an increase inspending power and has positively impacted the aviation industry.Economically, the new millennium has been highly volatile; theSeptember 11 attacks revolutionized the whole world. Consequently,there was a global depression in the North America, South America,Australia and Europe. However, in Asia especially Pakistan the effect in 48
    • the short term was otherwise. The economy began to boombecause of greater remittances from abroad and whole-sumimmigration by expatriates. As a result, demand for air travel in SouthAsia rose.Askari Aviation because of its monopoly in the market had beendictating policies and prices which are set after consideration by theMinistry of Defence. Economic conditions of Pakistan are howeverimproving. An increase in interest rates has negatively impacted theaviation industry. Due to the devaluation of rupee, attractiveness of thePakistani market has been reduced for foreign investors. Cost is abarrier to entry for new firms since it wouldtake a huge investment on part of new entrant to establish its bases inPakistan and buy or lease planes and helicopters.SOCIAL FACTORSThe social and cultural influences on business vary from country tocountry. The social structure of Pakistan is closely tied. The trend isnow changing as the general public is educated and is pursuingprofessional goals. Customers are more aware of market conditions andavailable options and want to get best value for their money. They 49
    • spend considerable time and money on entertainment henceincreasing the need flexible rates for its helicopter based safaris.The social environment of Pakistan is turning liberal with the newregime. However, Askari Aviation has untapped market potential bothabroad as well as in Pakistan, as consumers are unaware of its servicesbecause of ineffective and meager marketing efforts.TECHNOLOGICAL FACTORSTechnology is vital for competitive advantage and is a major driver ofthe airlines industry. Major technological changes are taking place inthe aviation industry with innovations in the helicopters flight controlsystem as well as newer and better planes which are more fuelefficient. A key issue will be the extent, to which technologicaladvancements (such as Internet) impact distribution and cost synergiesfrom industry consolidation, can offset upward pressures on costs.Askari Aviation has led the path of technological innovations byintroducing new technologies ahead of its international competitorssuch as its newly leased helicopters and planes which have helped itgain international market share.MARKET NEEDThere is a market need for the services offered by Askari Aviation sincerescue operations in far flung regions cannot be carried out by regular 50
    • means of transport due to the two main reasons: time and routeconstraint. So, Askari Aviation provides the quick means of securityservices say in the case of land slide that takes place or any othercasualty.It is worthy to mention that Askari Aviation rendered extremelyvaluable services during the October 8th earthquake, to take theaffected people to safer areas.COMPETITIONCurrently the company faces no competition by any organization. Thereason why this organization remains a monopoly is because the costof maintenance and flying of the helicopters is a very expensive 51
    • activity. Even if a helicopter is not in the air and not beingutilized for any activity, it still costs money and is being depreciated.This implies that the assets upon which the company depends are soexpensive to buy and maintain that it becomes unfeasible for anyprivate organization to actually afford them. Furthermore, the companyhas the backing of the Ministry of Defense which provides helicoptersand aircrafts. This shows that a similar service will require a hugeamount of investment, which is near to impossible for a privateorganization in Pakistan. Due to all these circumstances, theorganization enjoys monopoly and faces no competition.If a competitive organization does enter the market, besides buyingexpensive helicopters, they would also need to train employees to fly ahelicopter, which has a very special and expensive training, currentlyonly being given to army aviators. Askari Aviation has a competitiveedge in this case as their employees are already trained in flying andrescuing services while saving a considerable amount of training costs. 52
    • STRATEGIES FOR GROWTH AND EXPANSIONOne of the common business strategy frameworks used inunderstanding growth strategies is the Ansoff’s Growth Matrix,developed by H. Igor Ansoff – a strategic management guru. The matrixserves as a basic handy tool to set a firm thinking about the direction itwants to take in its search for growthMarket PenetrationIn this strategy, it would mean that the firm aims to sell more of itsexisting products in the markets that they are already in. This wouldtranslate into allocating more resources and efforts to build up salesand marketing activities to attain revenue growth. Indirectly, the firm isalso trying to increase its market share. Generally, this may seem lessrisky to a certain extent because the firm is already dealing in the 53
    • same markets and products, however there may be limitationsas to how much growth one can derive in this strategy.Market DevelopmentFor this strategy – existing products/newmarkets, this happens when a firm decides tosell its existing products into newgeographical markets or new marketsegments (another defined target market).For example, it could mean selling an existingSafari package to a new market overseas oralternatively, selling it to a new market segment (e.g. second-handMarket).The firm would also need to spend on sales and marketing topersuade consumers in new markets to purchase the product/services.Product DevelopmentThis strategy on the other hand, necessitates developing new productsto be sold in existing markets. This can be seen as a quite commonprocess because for a company to sustain its presence and growth, itcannot rely on a single product range. For instance, Askari Aviation candevelop new and cheaper packages or it can collaborate with tourism 54
    • development authority to formulate newer and better projectsthat are more appealing to perspective customers.Companies are competitively refreshing their product lines to keep intouch with consumers as well as to keep up with certain trends, marketneeds/tastes and etc. One would need some good grasp of marketknowledge and skills to come with new product introductions that suitsconsumer’s needs.DiversificationOften seen as a high risk strategy, diversification is where the firm sellsentirely new products to new customers in new markets. The reasonsfor such a business strategy could be due to a rise in opportunity thatthe firm has identified, or feel the need to tap and rely on new sourcesof growth and so on.There are two types of diversification: related and unrelateddiversification.Related diversification means that the firm remains in a particularindustry, but diversify into another type of product to be sold to newmarkets. For example, Askari Aviation starts to provide tourism relatedservices like opening of hotel and initiation of bus services for tourismrelated areas. This way, with some knowledge and skill in a particular 55
    • area (tourism and hotel services), a firm is going into a newproduct line to serve new markets.Unrelated diversification refers to a situation where the firm completelyventures into a new business area to serve new markets with its newproduct development. New capital investments are also needed. In thisscenario, it would mean that the firm is entering into an industry that ithas little experience with limited or no knowledge of the industry. Forexample if Askari Aviation moves into other diverse areas such as inmedia and telecommunications, shopping and etc.Whichever growth options you decide, a few critical things to bear inmind would be the suitability of your brand in other areas/sectors; time,human and labor resources as well as market and consumerexpectations. At the end of the day, the reward or benefit of embarkinginto a particular strategy should outweigh its costs.INCREASE PROMOTIONSIn our analysis, it is recommended that Askari Aviation should promoteits services and collaborate with Pakistan Tourism Board to broaden itsmarket base. Keeping in mind the potential and upcoming competitors,there won’t be any monopoly left for Askari Aviation. Since themanagement is unwilling to implement a comprehensive marketingcampaign, it is suggested that they follow consistent and modest 56
    • marketing activities. There is no need for mass advertisingbecause Askari Aviation does not target the masses. According to thetarget market, the company should advertise in the following ways: Web Advertising Askari Aviation should improve the layout of their website and make it simpler for the customers. They should be present on the site of PTDC so that the customers are aware that such a service exists. Brochures The brochures of Askari Aviation should be placed at counters of the airports in Pakistan and should be given out to the business class customers and foreigners. Festivals Askari Aviation should promote its name in the festivals where Pakistan Tourism Development Corporation participates like Summer Festival in Dubai and Festivals in Malaysia. 57
    • Maintaining Records of Customers In this way Askari Aviation can contact their at the start of the season for helicopter safaris and can send them any latest packages so that they feel valued.ENHANCE MOTIVATION OF EMPLOYEESAskari Aviation needs to motivate their employees so that satisfiedemployees can provide a better service as chances for service recoveryis less: they have to give a superior service the first time. Job Rotationshould be present which increases their motivation levels and enhancethe skills of employees. The employees should be sent for foreigntraining so that they feel loyal to the company. Skill EnhancementPrograms should be given to employees.FORECAST MARKETAskari Aviation needs to forecast the market to maintain its dominance. 58
    • Forecasting involves methods that derive from judgmental sources andfrom statistical sources. These methods and the relationships betweenthem are shown in the flowchart in Figure. Going down the flowchart,there is an increasing amount of integration between judgmental andstatistical data and procedures. This integration, which has beenstudied by researchers2 in the last decade, can improve forecastaccuracy.Judgmental forecasting is made based on factors such as intentions,role-playing, expert opinion etc. In intentional based forecasting peopleare asked how would they behave in various situations. Intentionssurveys are widely used when sales data are not available, such as fornew product forecasts. Similarly role playing forecasting involves thedomination of a person in some situations, such as in predicting howsome one in firm would behave in negotiations. Role-playing is usefulfor making forecasts of the behavior of individuals who are interactingwith others and especially when the situation involves conflict. The keyprinciple is to provide a realistic simulation of the interactions. It ismethod that has considerable potential for forecasting. Where as,Expert opinion studies differ substantially from intentions surveys.2 (Armstrong and Collopy, 1998). 59
    • When an expert is asked to predict the behavior of a market,there is no need to claim that this is a representative expert. Quite thecontrary, the expert may be exceptional. The preferred procedure is toweight each experts forecast equally.FORECASTING MARKET SIZEMarket size is influenced by environmental factors such as economicconditions, population, and ability to purchase, social trends,technological change, or government legislation. For example,demographic factors such as the size and age distribution of thepopulation, distribution of disposable income, culture, and religiousfactors influence the market for Askari Aviation.Askari Aviation believes that since they do not have any currentcompetitors in the market and their target market with respect todemographics and income parity are foreign adventurers, so they don’tface any immediate threats with respect to competition and reaction.Hence forecasting a market strategy is currently not beingimplemented by them.However, Askari Aviation should consider potential competition. A likelyscenario can be the introduction of helicopter safaris by airlines in 60
    • Pakistan. Thus, the company has to realize that this is seriousbusiness which must have a market forecast and growth strategies.REFERENCESPRIMARY SOURCEInterview with Col(r) Ilyaas Mohammad(Sr. Manager Askari Aviation)SECONDARY SOURCESBooksMarketing a Service for Profit: a Practical Guide to Key ServiceMarketing Concepts - Page 117by Greg Clarke 61
    • Guerrilla Marketing Excellence: The 50 Golden Rules for Small-Business Success - Page 114by Jay Conrad LevinsonMarketing Without Advertisingby Salli Rasberry, Michael PhillipsSuccessful Direct Marketing Methods - Page 17by Ron Jacobs, Bob StoneMarketing a Service for Profit: : a Practical Guide to Key ServiceMarketing Concepts - Page 1by Greg ClarkeWebsiteswww.askariavaition.comwww.en.wikipedia.org/wiki/Positioning_(marketing)www.morningstarmultimedia.com/html/blog.aspwww.itsolutions.forbes.com/.../Financial%20Service%20Marketing%20Positionwww.megapublic.com/branding/positioning.htmlwww.ephiz.com/services_Blueprints.phphttp://www.google.com/search?hl=en&q=services+marketing%2Bservice+design 62
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