Outline• Introduction of PIA• Pakistan Aviation Industry• Current Airlines of Pakistan• Cargo Airlines of Pakistan• PIA BRAND• Problems of this Organization• Problem Description• SIX BUILDING BLOCKS approach
Outline (Cont..)• Brand Awareness• BRAND RECOGNITION• Brand image• Brand Knowledge• Brand Elements and Differentiation• Brand Equity• Criteria for Choosing Brand Elements• Brand Differentiation:• Revised Vision Statement of PIA• RECOMMENDATIONS for PIA
PIA’s Introduction• Pakistan International Airlines Corporation, more commonly known as Pakistan International Airlines or PIA (Urdu: ), is the flag carrier airline of Pakistan.• Pakistan-based company -------- engaged in the provision of air transport services.
Pakistan Aviation Industry• Transportation sector is most important sector of any economy and aviation industry is major part of this sector. In Pakistan the transportation and communication sector holds more than 10% share in GDP.• In 1993 Civil aviation Authority has open the aviation sector for private investor in order to boost the healthy competition for better traveling services at low price fares.
Current Airlines of Pakistan• Pakistan International Airlines• Aero Asia• Air Blue• Shaheen Air International
PIA’s NetworkDomestic Network International Network
Cargo Airlines of Pakistan• Pakistan International Cargo• DHL Cargo Pakistan• Royal Air Cargo• Star Air• TCS Couriers
PIA BRAND• The product that PIA offers is the transportation routes (both domestic and international) for passengers (seats) and for cargo (space). PIA is basically an air travel service provider therefore it fulfills the general characteristics of services
Problems of this Organization• PIA is getting losses for many years. No serious effort is done to get out it from losses. During the last year Pakistan International Airlines (PIA) has stained a loss of PKR13.4 billion ($207.5 million). Operationally, it was also blacklisted by the European Union during the year, which hit its bottom line along with its prestige.• Losses for the year have widened slightly from a loss of PKR12.76 billion recorded in 2006
Problem Description• Lack of Brand Awareness• Low scale advertisements and awareness• Over recruitment• De-motivated employees• Political involvement during recruitment and selection• Maintenance problems• Poor image• Less technology advanced as compared to its competitors
Brand Awareness• Creating brand awareness is one of the key steps in promoting a product.• PIA is advertising its products (destinations) through different mediums. PIA has advertised in News papers (DAWN NEWS, THE DAILY NEWS, JUNG and planning for other newspapers also,);. PIA is also advertising through transports (painted corporate image of PIA on transport sides). PIA is advertising its products (destinations) through different mediums. PIA has advertised in News papers (DAWN NEWS, THE DAILY NEWS, JUNG and planning for other newspapers also,);. PIA is also advertising through transports (painted corporate image of PIA on transport sides).
Brand Awareness (cont..)• How more effective awareness can be made• TV ads• Radio Ads• Special news paper ads.
BRAND RECOGNITION• PIA has high brand recall. It is recognized by travelers all over the country. PIA is a national airline, operating passenger and cargo services covering eighty-two domestic and foreign. PIA has earned the Satisfactory ranking in customer satisfaction.
Brand image• Brand image is The impression of a product held by real or potential consumers.• PIA paints the brand image of being the less price taker and providing high quality to the customers as compare to the competitors• PIA positions itself as an ambassador of Pakistan in the world. Pakistani expatriates residing outside the country feels proud when they see an airline of their own home- country carrying the national flag.
How Pia can make strong Brand image in itsCustomer mind?• Management should ensure the punctuality of flight, in flights services and their standard must be world class• Effective campaigning of the special interests tourists’ packages for Pakistan to increase the travel to Pakistan must be done.• Cargo division must be responsible for supplying both perishable and non-perishable goods in the global market place.• Modernizing the airline’s fleet is badly needed as well proper maintenance of the fleet is required.
Brand Knowledge• Brand Knowledge “is a function of awareness, which relates to consumers’ ability to recognize or recall the brand, and image, which consists of consumers’ perceptions and of associations for the brand.”• PIA is very easily recognized and recalled because it is named after the countrys name, has green logo and a very memorable slogan. This will help to show a high level of awareness about the brand
Brand Elements and Differentiation• Name: Pakistan International Airlines (PIA)• URL: www.piac.com.pk• Logo:••• Slogan:• Great People to Fly With• Come Fly with Us• Ba-Kamal loog Lajawab Service• Color: Green• National Flag on aircraft tail
Brand Equity• The worth of a brand or A brands power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands .
Brand Differentiation• Brand Differentiation:• The brand differentiation is basically brought by positioning of brands. Positioning is the place which the brand makes in the minds of the customers or in market.•
Competitive Position of PIA Differentiation• Competitive Moves• PIA is having 48.4% market share internationally and 65% domestically, and PIA has the Market Leader Competitive Move in Pakistan.• Competitor Attack Strategy• The attack strategy of PIA against its competitor Air Blue is Flanking Attack Strategy.
Competitor Analysis Competitive Advantages of PIA• Reliability and safety• Best engineering facilities.• Best trained pilots.• National flag carrier.• Pakistani expatriates when step in the PIA plane they get they homely feelings because of the national airline which plays a role of ambassador.• High linkage to the remote areas of Pakistan.• State of art technologies and highly equipped engineering.
Existing Competitors of PIA• PIA operates both domestically and internationally. So it has different competitors on both scales of operations.• Domestic Competitor• International Competitors of PIA • Thai Airline • Ethad Airways • Qatar Airways • Singapore Airline • Emirates Airline
Criteria for Choosing Brand Elements• Memorobility: A necessary condition for building brand equity is achieving high level of brand awareness. PIA is very easily recognized and recalled because it is named after the country‟s name, has green logo and a very memorable slogan.
Criteria for Choosing Brand Elements• Meaningfulness: Brand elements can take all kind of meaning, with either descriptive or persuasive content.• Likability: Criteria for likability is that brand elements should be fun and interesting, rich in visual and verbal imagery, and aesthetically pleasing. PIA brand logo has a rich visual imagery that evokes a sense of national connect in the mind of the customer.
Criteria for Choosing Brand Elements• Transferability: Transferability of brand elements means they should be transferable across product categories and across geographical boundaries and culture. PIA‟s name, slogan and logo suggest it is an airline, so transferability across product categories is limited.
Criteria for Choosing Brand Elements• Adaptability: Brand elements should be flexible and updatable. PIA has successfully been updating some of its elements, for example slogan. The brand name and logo is also easily updatable with a touch of creativity.• Protectability: Brand elements must be legally and competitively protectable. The brand elements of PIA are protectable both in terms of legal and competitive sense, and are registered. Also, PIA is a national flag carrier which makes its brand elements legally and competitively protectable
Positioning of PIA• Currently PIA positions itself within the following positioning strategies.• 1) Positioning by attributes.• 2) Positioning by price and quality.• 3) Positioning by product user.
Positioning of PIA• Positioning by attributes. • Reliability Attribute • Speed Positioning • Safety• Positioning by price and quality. • Introduction of Additional Low Cost Flights Quality-price • “PIA express” Positioning• Positioning by product user. • An ambassador of Pakistan in the world. User Positioning
Vision Statement of PIA• “To be a world class profitable airline, exceeding customer expectations through dedicated employees, committed to excellence• Flaws• Many years back PIA was the world class airline but due to financial crisis and some other issues related to the management, PIA failed to achieve the goal of remaining the world class airline. So it is very clear that Pakistan International Airline does not fulfill the vision in its core sense.• So it needs a revised vision statement
Revised Vision Statement of PIA• “Company vision is to Cover more locations, domestically and Internationally by being the World best and most profitable airline company. Also to be an airline carrier that has the most dynamic workforce to guarantee the best flight possible for every passenger.”• The Revised Vision Statement is company oriented.
RECOMMENDATIONS FOR PIA• PIA should upgrade its fleet as it’s causing the airline higher operating cost and PIA is incurring loss .PIA should purchase new Airplane with twin engines these will reduce the operating cost of PIA Airline should focus on the customer’s satisfaction, refund process should be quick so that customer remains loyal to brand.
RECOMMENDATIONS FOR PIA• Decentralization:• PIA should decentralize its structure that would lead to the easy management and increased motivation
RECOMMENDATIONS FOR PIA• Marketing policy:• PIA should adopt good marketing policies so that it will bring higher profit and maximum utilization of its available resources, Business sector should be attracted to operate at full potential.• Modernizing the airline’s fleet is badly needed as well proper maintenance of the fleet is required.• Must take advantage of the increment in the air transportation especially towards Middle East countries and India.• Better and modern functioning of training and development department• Need for accountability.
RECOMMENDATIONS FOR PIA• Employee Empowerment PIA should make efforts towards empowering the employees that is going to lead to more employee participation in the decision making process. Overhead Costs PIA should also reduce its overhead costs that are it should mange its resources: Two-Way Communication The suggestions of the employees can prove to be very effective in improving the operations as they are the ones who manage them.