CBEB 2316 E-MARKETINGCompany Analysis : AIR ASIA BHDMohd FarhanChia Lee WanNur FadhilahUmi Zafirah
Presentation Outlines Overview of Internet properties Benefit, cost and value creation Customer Characteristics and Branding strategy Website analysis Business model E-Marketing metrics Recommendations
Overview of Internet PropertiesWebsite analysisWeb contentWebsite properties Global reach Time moderator Information equalizer Task automationWebsite design and Usability
Benefit, Cost and Value Creation Customer ExperienceCreating a Positive Customer Experience- An interaction between an organization and a customer as perceiver through acustomer’s conscious and subconscious mindsetting low air travel price by Air Asia- offered low fares without compromise the quality of air travel servicescreated their first loyalty program-biggest ever loyalty program, simply called BIG-earn points for every transaction-enjoy the priorities of booking, special offers and has the chance to redeem freeflightscome out with mobile phone app-can access to Air Asia website by using their mobile phone- consumers can self check-in by using their mobile phone after downloaded theapps for free
Benefit, Cost and Value CreationGive lowest price of air flight service to customers-compared to other airline company such as Malaysia Airlines (MAS), they offered at higherair flight rateAir Asia Insure Travel Protection-protection includes flight cancellation or curtailed or delays, loss of luggage, personalaccident, accidental medical reimbursement, and evacuation expensesCreating airasiago.com-customer book for 5 star hotels at 3-star rate which is guarantee as lowest price comparedto elsewhere online-will refund the price difference if customers are able to find lower rate at the same periodfor the same hotel bookingCollaborated with other banks-DBS bank in Singapore to launch a new MasterCard credit card-Citibank in Malaysia-Benefit of discount
Benefit, Cost and Value Creation Internet Marketing MixProducts- internet helped Air Asia to increase customer benefits- world’s first airline SMS booking- Air Asia also provides ticketless service (cost-reduction)- cost-reduction as the company allows Internet bookingPrices- Air Asia is a well-known low cost airline in Asia-target customers from various income levelsPromotions- Promotions act as marketing communication- Sponsorships ( e.g : QPR and Australian Moto Grand Prix)- Online promotion is way how Air Asia reduces costsPlaces (Distribution)- Place or distribution is about delivers the services or goods to the customers- connecting people and places across 132 routes and covered 65 destinations in 18countries
Benefit, Cost and Value Creation Customer Relationship Management•The process of targeting, acquiring, transacting, servicing, retainingand building relationship with customers• Allows the company to predict customer purchase behavior withthe support of information technology and customer database.•Ensuring that the customer has an opportunity to speak with thecompany-Self-service software in social media network- Facebook, Blog and Twitter•Social Customer Relationship Management-to create direct route of contact with their customers
Consumer Characteristics and Branding Strategy Branding consistency: Online & Offline strategyONLINE OFFLINE• sponsorship of global brands • uses online facilities for - e.g : QPR and the Williams reservations and payment of faresFormula 1 racing team• advertising in the print media • introduce Short Messaging System - e.g : newspaper to advertise (SMS) to book seatstheir new promotions or travelpackages partnership with Citibank to introduce Air Asia-Citibank Credit Card
Consumer Characteristics and Branding Strategy Environmental, Situational & Personal factors• Condition of the country - e.g : earthquake,H1N1• Political environment - perception of the environment in the country - obtained from any approach like newspaper, television, radio and internet• Personal factors - peer influence Air Asia has to maintain its good brand image, supply good quality services at affordable prices - Income level think of budget travel plan e.g : those with high level income can purchase premium class air flight tickets
Consumer Characteristics and Branding Strategy Market SegmentationMARKET SEGMENT DESCRIPTIONSPrice-conscious This segment of customers prefers low air faresbusiness passenger because their main concern is to obtain as lowest price as possibleQuality-conscious This segment of customers prefers full services airlinesbusiness passenger such as on-board servicesLong- haul Air Asia X is created in order to serve this group. Air Asia X Premium Flatbeds designed for those looking for comfort seat.Short-haul Short-haul customers prefer efficient and effective booking, check-in service and short boarding time.
Consumer Characteristics and Branding Strategy Brand Positioning• Using a tagline “Now Everyone Can Fly” - the customer will always easy remember about the low cost of the AirAsia provide• Targeting individuals who looking for air travel services at affordable price - offering lowest airfare and widest network of destinations in Asia.•Clear logo - clear written in big red cursive letterings against a white background - Located at the bottom of the logo is the tagline ‘Now Everyone Can Fly”
Consumer Characteristics and Branding Strategy Online & Offline customers• classical type of customer • save the cost - just clicking in the Air Asia website• difficulty to make a booking date ofthe flight • enjoy using the online - ask about the schedule of air• take a lot of cost traveling through online, make a - cost of traveling to airport payment through online, and also print out the ticket through online • easiest way to get the information
Website Analysis Currency1.Credit card Visa All currencies MasterCard All currencies Amex MYR, THB, USD, AUD, SGD, BND and HKD JCB JPY
Website Analysis Currency2. Direct debit Malaysia Ringgit Maybank2u, CIMB Clicks Hong Leong Online etc Thailand Baht Siam Commercial Bank Indonesia Rupiah CIMB Niaga Singapore Dollar eNETS Philippine Peso Dragonpay Corporation Renminbi 99 Bill, AliPay India Rupee CC Avenue, Axis Bank Australia Dollar PayPal US Dollar AliPay International, Smartlink,
Website Analysis CONTENT & USER ENGAGEMENTCONTENT USER ENGAGEMENTAir Asia website contain Air Asia engaging with theirvariety type of links customers using social media e.g : FacebookProviding different languagesfor different countriesFlash graphics
Website Analysis USABILITY, NAVIGATIONS & ACCESSIBILITYNavigation- Interactivity design- Company logo is linked to homepageAccess- AirAsia has reasonable site-load time- Ideal font size
Website Analysis OTHER COMPANY OWNED SITES• AirAsiaRedTix.com• AirAsiaBlog.com• AirAsiaCourier.com• AirAsiaMegastore.com
Business Model SPECIFIC E-BUSINESS MODEL USED• Air Asia has been classified into the Enterprise Level E-Business Model1.) E-commerce : online ticket booking and reservation2.) Social networking : Facebook
Business Model CUSTOMER VALUE• Attributes : online reservation system• Branding : apply existing brand name for newproducts (e.g: AirAsiaMegastore.com)
Business Model REVENUE STREAM SOURCES• Sales model : selling online air travel tickets•Transaction fee model : all BSP payment transactions forAirAsia bookings will be charged a fixed BSP Transaction fee
E-Marketing Metrics SITES OBJECTIVES• Air Asia website can be categorized into two major type of website which are commerce wherethe website is tasked for selling the company products and services online and alsosupport/service site where it provides visitor with quick answer such as FAQ.Two main objective of the web site which are :i.To achieve the sales and generate revenues Almost all of the sales of the company are generated from the web site or using online transaction.ii. To facilitate the company marketing activitiesA large portion of the website or center part of the website is used to displays the latestpromotional of the companyiii. To provide customer support Air asia had automated a lot of process in the company for instance, travelers are able to check in to the flight online by using the web check-in option in airasia.com.
E-Marketing Metrics Metric UsedThe balance scorecard is• Astrategic planning and management system to measure andimprove the strategies of the company.• The balance scorecard measures the company strategies from fourperspectives which are customer perspective, internal businessperspective, learning and growth perspective and financialperspective.
Conclusions & RecommendationsIn order to compete their competitors, Air Asia has design their businessstrategy which is mainly focused on low-cost philosophy which requiredsimplicity and efficient operations methodAir Asia creates positive customer experience using internet marketingmix.Moreover, discovered that Air Asia is very good in promoting their brandto all around the world. The successful of Air Asia in ASEAN significantly show the importance ofe-Commerce & m-Commerce assisting Air Asia to simplify their operation,efficiency, productivity and high utilization of assets to offer low fares.Air Asia should be ready to challenge their competitors by implementingtechnology to enable it to position themselves as leader in technology,industry-leading accuracy , and 5-star quality in the airline industry
Conclusions & Recommendations(i) PunctualityA reader Ken Miles wrote: “our recent Air Asia flight from Gold Coast to Kuala Lumpur wasdelayed for 45 minutes because of computer failure.”Air flights delay is the main concern of many customers especially business traveler, itcould affect the schedule of business traveler, thus will trigger inconvenience to them( ii) Customer relationship Management Air Asia needs to train their employees and empowered them by giving them guidelineson how to provide good quality of services to customers.Employees should be trained to be familiar about the whole operations of Air Asia toincrease effectiveness and efficiency of customer services, thus build up relationship withcustomers.(iii) Airport Terminal of Air AsiaDue to the status as low cost carrier, Air Asia chooses for low cost and remote area fortheir airport terminal. Traveler needs minimum 45 minutes to reach to the terminals whichare very time-consuming and inconvenient.Therefore, Air Asia should consider locating their airport near cities.
ReferencesBalance Scorecard Institute (2012). What is Balance Scorecard?Retrieved from http://www.balancedscorecard.org/Home/tabid/36/Default.aspxPress Release: Air Asia Leading Effort to Reduce Cost of Travelling. (2011, December 21).Retrieved May 10, 2012, from Air Asia: http://www.airasia.com/my/en/corporate/pressrelease.pageAir Asia Strategy. (n.d.). Retrieved May 10, 2012, from Air Asia:http://www.airasia.com/my/en/corporate/irstrategy.pageAvantiKumar. (2011, March 17). AirAsia adopts social CRM solution. Retrieved May 19, 2012, fromComputerWorld Malaysia: http://computerworld.com.my/resource/applications/crm/airasia-adopts-social-crm-solution/Strauss, Judy and Frost, Raymond (2012) E-Marketing 6th Edition, New Jersey, Prentice Hall Publising.Khor Yoke Lim, R. M. (2009). Branding an Airline: A Case Study Of Air Asia. Malaysian Journal of MediaStudies, 35-48.Evaluating Strategy For E-Commerce in Airline Industry :A Case of Air Asia. (n.d.). Retrieved May 19,2012, from http://etd.uum.edu.my/1433/1/SAPINA_BT._DUSAMO.pdf