1. ASKARI AVIATION
Askari Aviation, a subsidiary of Pakistan's Army Welfare Trust, was
established to provide quality services in the field of aviation to private
and public sector. It is manned and
operated by retired Aviators from Pakistan
Army Aviation, who have operated in
Northern Areas of Pakistan throughout their careers and provided
evacuation services to mountaineers.
This Rawalpindi-based operation, established in 1995, is dedicated to
maintaining and operating aircraft/helicopter consistent with
international standards. Askari Aviation offers to co-ordinate and
generates necessary financial resources or enters into joint venture
satisfying specific requirements of its client.
It is backed by Pakistan Army Aviation,
which has over thirty years of operational
experience in the northern areas with routine landings. The bases are
situated in Lahore, Peshawar, Chaklala and Chitral. Its Head Office is
located in Chaklala, Rawalpindi.
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2. OBJECTIVES
Askari 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
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3. to use its helicopters and aircrafts for transportation of
tourists.
TYPE OF SERVICE OFFER
The service can only be evaluated through experience as the
production and consumption cannot be separated. The description of
the 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
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4. 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
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5. 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, the
teams visiting Pakistan as per government policy will be required to
deposit of US$6000/= or provide guarantee of respective embassies to
Askari Aviation to clear the dues within 7 days. This is regard to the
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6. presence of foreign teams in Pakistan if they want to avail Askari
Aviation helicopters for rescue purposes.
Askari Aviation will give detailed
briefing to all the teams on arrival on
rescue services and issue a kit, holding
minimum essential equipment for
guidance and reception of helicopter in emergency. Intimation on all
the teams covered for the rescue services with their areas of operation
and peak days of activity, will be intimated to rescue centers in Gilgat
and Skardu by Askari Aviation.
Say in the case of any emergency, teams must quickly intimate
through 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 leaving
Pakistan and return the security kits back to the Askari aviation. In
addition to this there are certain constraints that if the rescue heights
are above 4000m, and then they are mandatory to carry helicopters in
pairs due to the lack of communication facilities in the Areas.
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8. Askari Charter Services
Askari Aviation have also started flying international charter both
passengers and cargo, particularly to Afghanistan. For security
operations, their teams keep hovering to different regions of North
Pakistan to get familiarized with all regions so that in the case of
emergency, it would take less time to locate the place for the security
operations.
Askari Airport Services
Ground-handling services are also being provided by Askari Aviation.
Such services include the coordination and organization of various
Commercial Airlines like Shaheen Airways, and PIA. Ground-handling
includes the maintenance of aircrafts, repairs and cleaning etc.
Although it is being provided on a limited scale and only in Chaklala
base but there is a potential for Askari Aviation to cash on the niche in
the market with this regard and to expand its services to major
international airports like Lahore(AIIP) and Karachi (Jinnah terminal).
TARGET MARKET
Askari 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, the
charges are passed onto the customers. Thus, a tourist is compelled to
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9. pay a lot of extra charges for availing this luxury transport. These
extra value charges can only be afforded by a limited number of
customers. This clearly indicates that the organization can only cater to
a niche market.
The market within Pakistan is extremely narrow due to psychographic
factors. Askari Aviation knows that helicopter services are mostly
availed by foreigners who are passionate about mountaineering, and
are willing to do so under any
circumstances. A similar passion
for this activity is very rare in
Pakistani citizens and hence they
feel it is futile to try to cater to a
local market where demand for it
does not exist.
Even if a demand of it did exist, the company prices are so high that
are unaffordable for a local. So affordability is another issue amongst
Pakistanis. This is because the prices charged for various safari
expeditions are so high (almost $10,000 per expedition) that Pakistanis
(even if belonging to the upper middle class) cannot afford their
services. The company is well aware of this fact, so they target only a
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10. foreign market or Pakistani nationals who live abroad as only
those 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
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11. 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 expedition
transport as it is not only reliable but also greatly reduces their time
and physical effort wastage. The benefits provided by the service are
attractive as all other alternative modes of transportation lead to a lot
of time wastage and tourists who are normally short on time, prefer to
choose this service as they are aware of its efficiency and
effectiveness.
Although Askari Aviation offers no specific loyalty to programs to repeat
customers and charge fixed rates to everyone. Albeit this, the
organization get repeat customers who are always willing to avail this
organization’s services. This shows that the target customers do find
the benefits being provided to them as attractive and worthwhile.
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12. POSITIONING
Askari Aviation has been positioned as a premium and high quality
service. It provides a unique service in Pakistan through its helicopter
safaris. It faces no competition in the country so it enjoys a monopoly
position. There is flexibility in consumption but not in production.
LIFE CYCLE
The service offer is at the growth stage because the demand for the
service is still increasing. The company is recognized as a quality
provider of helicopter safaris. Though it faces no competition at the
moment, the company has a repeat purchase behavior from customers.
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13. BASIS OF PRICING
The pricing has been done keeping in view the very high costs of flying
and maintaining helicopters and aircrafts. Therefore, Askari Aviation
adopts cost-based pricing. According to customer perception, Askari
Aviation offers high quality service. Customers are interested in the
prestigious services the company offers and price is not a primary
concern of customers. So the company adopts prestige pricing.
PRICING STRATEGY
Type 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 3,174.00
Puma 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 1,835.00
UH1H/AB- One 8 - 1,500 M 1,697.00 -
205
Jet One 3 - 2,500 M 1,697.00 -
Ranger
Schweizer 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 -
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14. The above mentioned prices have been set in accordance with the
rules and regulations laid by the Ministry of Defence itself. Although,
the pricing is unsuitable for local or national customer; but with regards
to International adventurers and tourists, it is nominal and compete
able to international service providers.
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15. DISTRIBUTION NETWORK
Askari has its bases in Lahore,
Islamabad, Peshawar, Chitral
and Skardu. Its marketing and
sales office is located in
Rawalpindi and so is its
corporate office in AWT plaza
Rawalpindi. It monitors and
controls its business through
these offices respectively and
there are no regional
distribution channels as such,
which means that the prospective customer can only avail their
services through registration and booking in its Rawalpindi based office
only.
COMPONENTS OF SUPPLY CHAIN
In Askari Aviation, the major component of supply chain is the
availability of required helicopters and planes at its disposal. Since
these planes and helicopters are leased out by Ministry of Defence, so
pre requisites must be fulfilled in due course to obtain the required
planes and helicopters.
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16. Secondly is the availability of spare parts and necessary equipment
needed in case of emergency and general repairs is also involved in the
supply chain for Askari aviation. And last but not the least is the
Aviators themselves. Since no plane can fly without a pilot, and the
current turnover of pilots due to commercial planes has made this
availability considerably difficult job for Askari Aviation.
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17. PROMOTIONAL BUDGET
There is no promotional strategy that is being followed by Askari
Aviation as they feel that since they target foreign customers they do
not need to advertise. Thus, no specific budget is allocated for
promotions. But the group has devised certain strategies that will help
Askari to promote its services. Such strategies are discussed in the
recommendation part of our report.
OBJECT OF PROMOTION
The objective of promotion is to stimulate demand and generate sales.
Sales are the lifeblood of a business, without sales there would be no
business in the first place; therefore it is very important that if a
business wants to succeed, it should have a sales promotion strategy in
mind. The primary objective of a sales promotion is to improve a
company's sales by predicting and modifying your target customer's
purchasing behavior and patterns. This should be realized by Askari
Aviation.
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18. TOOLS OF PROMOTION
As Askari Aviation has no clear promotional strategies, the tools that
they 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.
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22. SERVICESCAPE
Since the service is largely intangible, physical evidence is often a
criterion to evaluate the service and predetermine satisfaction with the
service during and after consumption. As the service of Askari Aviation
operates in an interpersonal environment, a cleverly designed
servicescape can lead to the satisfaction of both customers and
employees. The servicescape of Askari Aviation largely plays the role of
a facilitator and socializer. Following are the elements encompassing
the servicescape of the organization:
Servicescape Other Tangibles
Marketing Office Tickets/Receipts
Exterior and Meals
Askari Aviation Interior Uniforms
Base Layout Website
Aircraft Exterior
Aircraft Interior
(Space, Seats, Air
Quality)
Marketing Office Exterior and Interior
The Marketing Office of Askari Aviation is located in Chaklala,
Rawalpindi. The Office is near the airport and placed somewhat
between the twin cities. So, the location is conveniently accessible for
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23. tourists landing at the Islamabad Airport. The appearance of the
Office is not very professional as it is gives a casual impression and can
be easily mistaken for another residence in the area. There is a small
board at the entrance indicating that this place is their Office. The
exterior can be worked upon by making it more visible and
differentiated. As far as the interior is concerned, it has a reception in
the front where assistance can be easily obtained. There are pictures
and boards showing the quality of service and instructions for the
process. However, the arrangement is again mediocre and should be
revamped by keeping a specific colour combination, uniform furniture
and orderly arrangement of pictorial display.
Base Layout
The bases are owned and operated by
the Civil Aviation Authority and situated
in various areas of Pakistan to facilitate
movement of customers. The planes
present are scheduled beforehand as
per the request of the customers.
Aircraft Exterior
The Aircrafts/Helicopters are of top-quality and impressive looking. The
exterior differs from plane
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24. to plane but it gives the customer a fair judgement of the level of
quality of the airplanes. The aircrafts are in fine condition and models
which are five or six years old are being used.
Aircraft Interior
The interior is not plush as airplanes are but is made to suit the rough
and tough. The seats are comfortable with exceptional air quality
maintained. The space differs from aircraft to aircraft.
Other Tangibles: Tickets/Receipts
The ticket/receipt is obtained from the Marketing Office on payment.
Meals
Askari Aviation provides on-board services which includes a tangible
component of meals. The meals are of adequate quality.
Uniform
The pilots are required to dress in a proper
uniform. This shows the level of indulgence
the organization shows in making itself look
like a uniform unit and thus is taken
seriously by the customers.
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25. Website
Internet sites are a part of the servicescape as they give a virtual
experience to the service because it is actually consumed and thus
gives a platform to evaluate the service. The service description,
service offers and instructions for application and payments can be
explicitly displayed.
SERVICE GAP
Gaps 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.
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26. 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 its
monopoly with regards to its existence as the only service provider of
helicopter safaris and secondly due to its high fare rates that tend to
fend off local tourist or adventurers.
We found that company driven service gaps are more affecting the
overall service segment rather then the customer driven gaps.
Although there is a larger customer base in Pakistan that would like to
avail such service facilities but the potential bottle neck arises on the
very first step of service i.e. service charges. Keeping in mind the
service charges it is difficult for even the most influential Pakistanis to
avail such facility for leisure and adventure. Second bottle neck that we
found and tends to create a service gap in itself is the lack of Askari
Aviation to promote itself internationally as a major and only service
provider in Pakistan and various other international destinations for UN
based purposes. Focus based marketing is necessary to promote Askari
abroad so that to attract foreign tourist and adventurer to Pakistan.
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27. This will help to promote a softer image of Pakistan and will help
to boost the tourism industry of Pakistan as well.
OPERATIONAL PROCEDURES
The operational procedures of Askari Aviation have been elaborated
earlier in the service blueprint. The service is characterized as a high
contact service where moments of truth evaluate the quality of service.
Askari Aviation provides a service which is flexible in consumption as
customized
packages can be
availed but there is
no flexibility in
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28. production as a customer has to visit their office and base to
experience the service.
The operational procedures are structured with respect to timing
schedules. These schedules are follows:
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30. All these service deliveries are made with respect to the above
mentioned schedules and are complimented to weather conditions as
well as availability of aircrafts or helicopters.
SERVICE RECOVERY
The goal of service recovery1 is to identify customers with issues and
then to address those issues to the customer satisfaction to promote
customer retention. However, service recovery doesn't just happen. It
is a systematic business process that must be designed properly and
implemented in an organization. Perhaps more importantly, the
organizational culture must be supportive of idea that customers are
important and their voice has value.
Research has shown that customers who have had a service failure
resolved quickly and properly are more loyal to a company than are
customers who have never had a service failure -- significantly more
loyal. Service Recovery practices are a critical element in a Customer
Loyalty Program.
1
http://www.greatbrook.com/service_recovery.htm
30
31. One way to think about service recovery is that it is a positive
approach to complaint handling. Complaint handling has serious
negative connotations; whereas, service recovery has positive
connotations. Complaint handling is placating people, minimizing a
negative. Service recovery practices are a means to achieve the
potential, latent value a customer holds for a company by fostering an
ongoing positive relationship.
Service recovery has a secondary value. It creates positive word-of-
mouth about your company and minimizes the bad spin that lack of
service recovery practices can create.
Askari Aviation provides a full recovery to its customers if they cancel
their reservation 48hours before scheduled service. They also provide
completely free rescue services to its clients in case of an emergency
as is covered under the respective insurance plan. This helps to
improve the customer relation of Askari and tends to improve its
international market image.
SERVICE DESIGN
The service has a high intangibility aspect in it; it is a high contact
service. The indirect interaction takes place between a customer and
Askari Aviation through the internet, then direct interactions with the
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32. 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
33. Since Askari aviation is managed and operated by retired
aviators from Pakistan Army Aviation who have served all along the
major tenure of their careers working in the northern areas of Pakistan,
so the total working force of Askari aviation is just a meager
number i.e. 700 people approximately. The reason being the fact
that in case of the pilots, they mostly take people from Army Aviation
and segment further to those who have either spent most of their time
in northern areas owing to the special handling expertise of the
helicopters and planes that they owe for their services. Apart from that
they, also take people from commercial flying clubs but their selection
criteria are fixed i.e. they require a completion of specific no. of hours
and then they take test flight for certain hours and after strong and
rigorous process of inculcation, they are selected on the efficiency and
effectives of the pilot’s complete handling of the plane. This is due to
the nature of service that they provide, rescue and recreational, they
cannot afford to have inefficient people for their plane operations.
HIERARCHY OF MANAGEMENT
In case of their lower level management, that includes the ground staff
handling people, the technicians required for the planes, data analyst,
they are kept on the contract and
the permanent basis. In regard to
keep their performance level up to
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34. the standard, they are given quarterly and annually training
programs that ensure co inculcate them with the latest information of
plane handling especially for the technicians and senior plane
managers. For the people who work in control room, they are given
special training for helicopter takeoff and landing positions, especially
in the case of some emergency. Apart from that, the total working
population of Askari Aviation including their all employees is reviewed
by AWT annually to ensure the numbers of people are proportionate
with 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. Apart
from this, they also get 5% share from the total profit that they
generate from their services before giving the amount to the ministry
of defense. Manager takes 35000-40000/= salary and along with some
additional benefits. The
salary figures change with respect to the difference in the location of
their offices. In general, since it’s a subsidiary of AWT, the salary
structure of their employees is chalked out by them.
However, they keep on revising their salary level owing to different
economic conditions say inflation etc.
AGES OF EMPLOYEES
34
35. With regard to the ages of employees, the top level management
is average aged between 45-60 years of age (the figure can vary owing
to the experience owned by the people), In regard to their lower level
management, they don’t have any fixed criteria as far as the ages are
concerned, its just that the people they take have to be competent
enough, 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 PROGRESSION
In Askari Aviation, the major portion of employee is formed by retired
army personals. These personals are already trained and most of them
have significant job and technical experience attained from their
previous job in army already. This helps such employees to attain
higher and immediate progression in Askari Aviation and various
related branches of Askari Trust. Besides that, civilian employees are
provided the opportunity to progress themselves through various
training and skill development programs. Major one is the FOO and FCO
tests for licensing of an Aviator and ATC for air traffic controller exams.
Such career progression not only helps to motivate employees but also
helps them to further their career in commercial aviation as well.
35
36. EMPLOYEE RETENTION
In case of employee turnover and retention ratio, the employees of
AWT are employed on both contracts and permanent basis. The rules
and regulations governing the employee job concern are held by AWC
itself. The turnover of employees in the Askari aviation is low because
firstly, few numbers of people get themselves employed with Askari
aviation though the selection is still competitive; secondly, all measures
are taken to ensure the employee satisfaction. Many incentives are
given in this regard that includes Umrah, allowances of education,
medical insurance etc. The job contract signed by the employees
clearly demonstrates the rules and regulations of the company. The
company employees have to be well educated in field of aviation and
aeronautics. This whole process is carried out by the selective
recruitment by the selection committee of AWC.
The flying and maintenance crew is based on highly qualified,
experienced professionals from the Armed Forces of Pakistan. This
offers highest quality of service and safety standards, ensuring
commitment to professional excellence. As a disciplined organization,
they perfectly understand essence of responsibility and importance of
time. Their personal experience, therefore, will be of immense value to
coordinate between mountaineering expeditions and Army Aviation, to
achieve the objective with desired results.
36
37. According to the service profit chain, satisfied employees are capable
of delivering top-quality service which leads to profitability for the
organization.
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37
38. S.W.O.T.
STRENGTHS
Monopoly Power
One of the major strengths that this organization is banking on is the
fact that currently it faces no competition and is one-of-the-kind in the
country. There is no other organization in Pakistan that provides
customers with a similar service so Askari Aviation enjoys a complete
monopoly.
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39. Financial Backing
Another 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 they
know that at the end of the day all they will be reimbursed for all their
expenses. The helicopters being used for the service also belong to the
army so their maintenance and running costs are a burden for the
army, instead of this organization.
No Training Costs
Askari Aviation enjoys the fact that they do not have to spend any
money to train pilots, which is a very expensive training, as their
employees consist of retired aviators that are already trained by the
army to fly helicopters
WEAKNESSES
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40. High Fare
The fact that Askari Aviation is forced to charge extremely high prices
from its customers is a weakness for the organization as it limits their
target market to only a few individuals in the country. This limits them
to target their services to only a niche segment in the country who can
afford to pay the high prices they charge. The niche that they do target
is through the means of internet or placement of brochures in luxury
hotels. The organization does not indulge in mass advertisement as
they know that the niche they target can be easily catered through
these means and till now a need has not arisen for them to indulge in
any sort of large scale promotional activities.
Lack of Promotional Activities
40
41. As the organization does not promote itself on a large scale, not
many people are aware of is existence. Although the organization’s
employees assert that they do not promote themselves as the prices
they charge are too high for most of the people to pay, it is believed
that 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 it
might attract some more potential customers who have enough
resources to avail this service but due
to lack of awareness are unable to do
so.
Expensive Spare Parts
Besides that the high maintenance and flying costs of the helicopter
are, although not being paid by the organization, are still a weakness
for the organization as these extremely high prices hinder the
availability of any spare parts and the continuity of various processes.
41
42. OPPORTUNITIES
Increasing Expeditions
An opportunity for the company is to offer more safaris and travel
packages to unexplored parts of the country. It could offer these travel
packages to different areas in the country as well as to its neighboring
countries. These packages should be offered to visit the exotic
locations within the country which are still unexplored and might
interest the target customers.
Collaboration with Pakistan Tourism Board
Askari aviation has a major opportunity to collaborate its services with
Pakistan Tourism Board. Such collaboration would be based on mutual
interests with respect to promotion of tourism in Pakistan. Since Askari
Aviation is focusing primarily on Hiking and Safari trips and due to the
financial aspect of the offering, its target market is outside Pakistan.
Hence collaboration with Pakistan Tourism Board will help to promote
its services abroad and into a wider market segment.
In return their services will help to bring more tourists for PTDC and
hence improve our overall tourism industry.
Provision of Infrastructural Services to other Organizations
42
43. Besides that this service could be hired by large multi national
companies who indulge in various mining activities in the dry and
isolated areas of Balochistan or Sindh. As access to these areas is
almost non existent and the infrastructure is in a very deplorable
condition, the organization can use these factors to its advantage and
provide the engineers and employees of these firms, an easy and
efficient access to these sights.
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44. THREATS
New Competitors
Although the organization’s employees say that the chances of a
competitive firm emerging in the near future are minor, this possibility
should not be completely ignored. It should be kept in mind that they
might have to face competition from another firm in the near future
who has a cost or technological advantage over them.
Loss of Customers
Another threat to this origination’s services could be loss of customers
from its competitive firms in Nepal. Although the firm does not face
competition from any firm within the county, it is facing a competition
44
45. from similar services being provided by Nepalese aviation. We
were told by Mr. Ilyas that Pakistan has 4 high peaks whereas Nepal
has 10, which mostly attract the tourists to these countries. If Nepal is
able to improve its services and provide better services and travel
packages to its customers, they might switch to those services and
Askari aviation might loose its appeal to the tourists.
Political Situation in the Country
Besides this the political situation within the country is very fragile and
there is a lot of unrest which is prevalent. This could also deter the
tourists from visiting Pakistan as they are concerned about their safety.
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46. P.E.S.T.
The macro-environment includes all factors influencing a company that
are not within its control. These include political social, economic and
technological factors. These are known as PEST factors. A technique of
analysis of the macro environment is PEST analysis. Since the tourism
and aviation industry is very much influenced by changes taking place
in the environment and has undergone rapid and dramatic changes
during the last decade, this analysis is especially important for Askari
Aviation.
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.
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47. POLITICAL FACTORS
Political factors always have a great influence on the way businesses
operate in the aviation industry and the spending power of customers.
Governments intervene in the tourism and aviation industry for various
reasons, 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 played
an active role in increasing competition in the tourism and aviation
industry. A number of new airlines such as JS Air have been awarded
licenses 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. Pakistan
has achieved some political stability in recent years. If the
management of Askari Aviation believes that the present
government will perform well (consistently), then there will be more
investment in the form of purchase of new airplanes and latest
technology. The over all industry will grow resulting in more luxurious
and comfortable flights. With the military takeover government policies
have become more liberal. In the past, Pakistan’s Civil Aviation
47
48. Authority (CAA) played a major role in discouraging new
Aviation safari providers to enter the industry. CAA had a restriction
that companies could not operate as safari and charter providers
unless they own their aircrafts. This means that new firms will need
humongous investment even to enter the market.
ECONOMIC FACTORS
Currently Aviation industry has one local player i.e. Askari Avaiation.
Their target market includes foreign travelers and adventurers who
tend to visit the extreme northern areas of Pakistan e.g Japan,
Germany, Sweden, Korea, USA, UK and lots more. These countries
have strong economies coupled with high purchasing power.
Customers’ purchase behavior depends very much on prices of the
competing airlines as well as services offered. As inflation rate is stable
in Pakistan, spending power of consumers is not effected in the long
term. In fact growth in Pakistani economy has resulted in an increase in
spending power and has positively impacted the aviation industry.
Economically, the new millennium has been highly volatile; the
September 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
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49. the short term was otherwise. The economy began to boom
because of greater remittances from abroad and whole-sum
immigration by expatriates. As a result, demand for air travel in South
Asia rose.
Askari Aviation because of its monopoly in the market had been
dictating policies and prices which are set after consideration by the
Ministry of Defence. Economic conditions of Pakistan are however
improving. An increase in interest rates has negatively impacted the
aviation industry. Due to the devaluation of rupee, attractiveness of the
Pakistani market has been reduced for foreign investors. Cost is a
barrier to entry for new firms since it would
take a huge investment on part of new entrant to establish its bases in
Pakistan and buy or lease planes and helicopters.
SOCIAL FACTORS
The social and cultural influences on business vary from country to
country. The social structure of Pakistan is closely tied. The trend is
now changing as the general public is educated and is pursuing
professional goals. Customers are more aware of market conditions and
available options and want to get best value for their money. They
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50. spend considerable time and money on entertainment hence
increasing the need flexible rates for its helicopter based safaris.
The social environment of Pakistan is turning liberal with the new
regime. However, Askari Aviation has untapped market potential both
abroad as well as in Pakistan, as consumers are unaware of its services
because of ineffective and meager marketing efforts.
TECHNOLOGICAL FACTORS
Technology is vital for competitive advantage and is a major driver of
the airlines industry. Major technological changes are taking place in
the aviation industry with innovations in the helicopters flight control
system as well as newer and better planes which are more fuel
efficient. A key issue will be the extent, to which technological
advancements (such as Internet) impact distribution and cost synergies
from industry consolidation, can offset upward pressures on costs.
Askari Aviation has led the path of technological innovations by
introducing new technologies ahead of its international competitors
such as its newly leased helicopters and planes which have helped it
gain international market share.
MARKET NEED
There is a market need for the services offered by Askari Aviation since
rescue operations in far flung regions cannot be carried out by regular
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51. means of transport due to the two main reasons: time and route
constraint. So, Askari Aviation provides the quick means of security
services say in the case of land slide that takes place or any other
casualty.
It is worthy to mention that Askari Aviation rendered extremely
valuable services during the October 8th earthquake, to take the
affected people to safer areas.
COMPETITION
Currently the company faces no competition by any organization. The
reason why this organization remains a monopoly is because the cost
of maintenance and flying of the helicopters is a very expensive
51
52. activity. Even if a helicopter is not in the air and not being
utilized for any activity, it still costs money and is being depreciated.
This implies that the assets upon which the company depends are so
expensive to buy and maintain that it becomes unfeasible for any
private organization to actually afford them. Furthermore, the company
has the backing of the Ministry of Defense which provides helicopters
and aircrafts. This shows that a similar service will require a huge
amount of investment, which is near to impossible for a private
organization in Pakistan. Due to all these circumstances, the
organization enjoys monopoly and faces no competition.
If a competitive organization does enter the market, besides buying
expensive helicopters, they would also need to train employees to fly a
helicopter, which has a very special and expensive training, currently
only being given to army aviators. Askari Aviation has a competitive
edge in this case as their employees are already trained in flying and
rescuing services while saving a considerable amount of training costs.
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53. STRATEGIES FOR GROWTH AND EXPANSION
One of the common business strategy frameworks used in
understanding growth strategies is the Ansoff’s Growth Matrix,
developed by H. Igor Ansoff – a strategic management guru. The matrix
serves as a basic handy tool to set a firm thinking about the direction it
wants to take in its search for growth
Market Penetration
In this strategy, it would mean that the firm aims to sell more of its
existing products in the markets that they are already in. This would
translate into allocating more resources and efforts to build up sales
and marketing activities to attain revenue growth. Indirectly, the firm is
also trying to increase its market share. Generally, this may seem less
risky to a certain extent because the firm is already dealing in the
53
54. same markets and products, however there may be limitations
as to how much growth one can derive in this strategy.
Market Development
For this strategy – existing products/new
markets, this happens when a firm decides to
sell its existing products into new
geographical markets or new market
segments (another defined target market).
For example, it could mean selling an existing
Safari package to a new market overseas or
alternatively, selling it to a new market segment (e.g. second-hand
Market).The firm would also need to spend on sales and marketing to
persuade consumers in new markets to purchase the product/services.
Product Development
This strategy on the other hand, necessitates developing new products
to be sold in existing markets. This can be seen as a quite common
process because for a company to sustain its presence and growth, it
cannot rely on a single product range. For instance, Askari Aviation can
develop new and cheaper packages or it can collaborate with tourism
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55. development authority to formulate newer and better projects
that are more appealing to perspective customers.
Companies are competitively refreshing their product lines to keep in
touch with consumers as well as to keep up with certain trends, market
needs/tastes and etc. One would need some good grasp of market
knowledge and skills to come with new product introductions that suits
consumer’s needs.
Diversification
Often seen as a high risk strategy, diversification is where the firm sells
entirely new products to new customers in new markets. The reasons
for such a business strategy could be due to a rise in opportunity that
the firm has identified, or feel the need to tap and rely on new sources
of growth and so on.
There are two types of diversification: related and unrelated
diversification.
Related diversification means that the firm remains in a particular
industry, but diversify into another type of product to be sold to new
markets. For example, Askari Aviation starts to provide tourism related
services like opening of hotel and initiation of bus services for tourism
related areas. This way, with some knowledge and skill in a particular
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56. area (tourism and hotel services), a firm is going into a new
product line to serve new markets.
Unrelated diversification refers to a situation where the firm completely
ventures into a new business area to serve new markets with its new
product development. New capital investments are also needed. In this
scenario, it would mean that the firm is entering into an industry that it
has little experience with limited or no knowledge of the industry. For
example if Askari Aviation moves into other diverse areas such as in
media and telecommunications, shopping and etc.
Whichever growth options you decide, a few critical things to bear in
mind would be the suitability of your brand in other areas/sectors; time,
human and labor resources as well as market and consumer
expectations. At the end of the day, the reward or benefit of embarking
into a particular strategy should outweigh its costs.
INCREASE PROMOTIONS
In our analysis, it is recommended that Askari Aviation should promote
its services and collaborate with Pakistan Tourism Board to broaden its
market base. Keeping in mind the potential and upcoming competitors,
there won’t be any monopoly left for Askari Aviation. Since the
management is unwilling to implement a comprehensive marketing
campaign, it is suggested that they follow consistent and modest
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57. marketing activities. There is no need for mass advertising
because Askari Aviation does not target the masses. According to the
target 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.
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58. 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 EMPLOYEES
Askari Aviation needs to motivate their employees so that satisfied
employees can provide a better service as chances for service recovery
is less: they have to give a superior service the first time. Job Rotation
should be present which increases their motivation levels and enhance
the skills of employees. The employees should be sent for foreign
training so that they feel loyal to the company. Skill Enhancement
Programs should be given to employees.
FORECAST MARKET
Askari Aviation needs to forecast the market to maintain its dominance.
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59. Forecasting involves methods that derive from judgmental sources and
from statistical sources. These methods and the relationships between
them are shown in the flowchart in Figure. Going down the flowchart,
there is an increasing amount of integration between judgmental and
statistical data and procedures. This integration, which has been
studied by researchers2 in the last decade, can improve forecast
accuracy.
Judgmental forecasting is made based on factors such as intentions,
role-playing, expert opinion etc. In intentional based forecasting people
are asked how would they behave in various situations. Intentions
surveys are widely used when sales data are not available, such as for
new product forecasts. Similarly role playing forecasting involves the
domination of a person in some situations, such as in predicting how
some one in firm would behave in negotiations. Role-playing is useful
for making forecasts of the behavior of individuals who are interacting
with others and especially when the situation involves conflict. The key
principle is to provide a realistic simulation of the interactions. It is
method that has considerable potential for forecasting. Where as,
Expert opinion studies differ substantially from intentions surveys.
2
(Armstrong and Collopy, 1998).
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60. 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 the
contrary, the expert may be exceptional. The preferred procedure is to
weight each expert's forecast equally.
FORECASTING MARKET SIZE
Market size is influenced by environmental factors such as economic
conditions, population, and ability to purchase, social trends,
technological change, or government legislation. For example,
demographic factors such as the size and age distribution of the
population, distribution of disposable income, culture, and religious
factors influence the market for Askari Aviation.
Askari Aviation believes that since they do not have any current
competitors in the market and their target market with respect to
demographics and income parity are foreign adventurers, so they don’t
face any immediate threats with respect to competition and reaction.
Hence forecasting a market strategy is currently not being
implemented by them.
However, Askari Aviation should consider potential competition. A likely
scenario can be the introduction of helicopter safaris by airlines in
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61. Pakistan. Thus, the company has to realize that this is serious
business which must have a market forecast and growth strategies.
REFERENCES
PRIMARY SOURCE
Interview with Col(r) Ilyaas Mohammad
(Sr. Manager Askari Aviation)
SECONDARY SOURCES
Books
Marketing a Service for Profit: a Practical Guide to Key Service
Marketing Concepts - Page 117
by Greg Clarke
61
62. Guerrilla Marketing Excellence: The 50 Golden Rules for Small-
Business Success - Page 114
by Jay Conrad Levinson
Marketing Without Advertising
by Salli Rasberry, Michael Phillips
Successful Direct Marketing Methods - Page 17
by Ron Jacobs, Bob Stone
Marketing a Service for Profit: : a Practical Guide to Key Service
Marketing Concepts - Page 1
by Greg Clarke
Websites
www.askariavaition.com
www.en.wikipedia.org/wiki/Positioning_(marketing)
www.morningstarmultimedia.com/html/blog.asp
www.itsolutions.forbes.com/.../Financial%20Service%20Marketing
%20Position
www.megapublic.com/branding/positioning.html
www.ephiz.com/services_Blueprints.php
http://www.google.com/search?hl=en&q=services+marketing
%2Bservice+design
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