SlideShare a Scribd company logo
1 of 58
Download to read offline
Strategic Marketing Plan




                           Strategic Marketing Plan Mandala Air

                                          The Second Life




                                    Haris Suhendra, Pramita Wardani, Endah Widiastuti,
                                       Stephanus Kurniadi, Hendriana, Steven Martono
Strategic Marketing Plan




       Table of Contents

      Table of Figure
      Chapter 1 : Overview                                                 1
                1.1 Executive Summary                                      1
                1.2 Introduction                                           2
      Chapter 2: Situation Analysis                                        9
                2.1 4C’s Diamond Analysis                                  9
                2.2 Curve Value analysis                                   14
                2.3 SWOT Analysis                                          15
                2.4 Competitor Analysis based on 4P’s                      19
                2.5 Consumer Insight                                       20
      Chapter 3 : Marketing Segmentation, Target Market, and Positioning   26
                3.1 Market Segmentation                                    26
                3.2 Target Market                                          26
                3.3 Positioning                                            26
      Chapter 4 : Marketing Goal and Objectives                            27
      Chapter 5 : Marketing 4C’s Strategies and Tactics                    28
                5.1 Consumer                                               28
                5.2 Cost                                                   29
                5.3 Convenient                                             30
                5.4 Communication                                          31
      Chapter 6 : Controls – progress measurement and monitoring           37
      Reference                                                            38
      Appendix
Strategic Marketing Plan




      Table of Figure


            Figure 1 : Mandala Lockheed L-188 Electra at Perth Airport (early 1990s).
            Figure 2 : An Airbus A319-100 in the current livery
            Figure 3 : Mandala Corporate Identity
            Figure 4 : The 4C’s Diamond of Mandala, Source : MIM
            Figure 5 : Indonesia Macroeconomic Situation
            Figure 6 : Indonesia Airlines Market 2011 Market Share, Source: OAG Max Online for w/c
                           10 January 2011
            Figure 7 : Mandala Curve Value
            Figure 8 :Mandala SWOT Analysis
            Figure 9 : Customer’s Insights: Customer’s Profile
            Figure 10 : Customer’s Insights: Customer Transportation
            Figure 11 : Customer’s Insights:Airline’s Profile
            Figure 12 : Customer’s Insights: Mandala Brand Awarenes
           Figure 13 : Customer’s Insights: Netnography #1
           Figure 14 : Customer’s Insights: Netnography #2
           Figure 15 : Mandala Marketing Segmentation, Target Market and Positioning
           Figure 16 : Mandala Marketing 4C’s Strategies and Tactics
           Figure 17 : Consumer : New Product Development
           Figure 18 : Cost : Bowman’s Strategic Options
           Figure 19 : Convenient for the New Mandala
           Figure 20 : Clarification of Mandala Brand
           Figure 21 : Mandala Brand Strategy Platform
           Figure 22 : The New Mandala Value Curve
           Figure 22 : The New Mandala Brand Campaign
           Figure 23 : The New Mandala 360 degree Communication
           Figure 24 : The Mandala Controls – progress measurement and monitoring
Strategic Marketing Plan


      Chapter 1
      Overview

      1.1 Executive Summary
           Mandala Air was once a glorious airline in Indonesia, in January 2011 they stopped their
           operation due to bankruptcy. Because of the future prospect in Indonesia airline is quite
           good, Saratoga Group bought 51% share of the airline, pledged with Tiger Airways 33%.
           Sandiaga Uno, co-founder and chief executive of private equity firm Saratoga Group and
           Chin Yau Seng.


           Mandala restarting operations with its first flight from Jakarta to Medan, capital of North
           Sumatra. Mandala’s return as a low-cost carrier, Mandala expects to tap the middle-income
           demographic, which he said had grown by 7 million people annually in recent years,
           creating a big pool of consumers increasingly seeking air travel.


           Chin Yau Seng, Tiger’s chief executive was optimistic about the Indonesian market and
           ready to compete with established budget airlines, including Lion Air, Citilink and Indonesia
           AirAsia, that are also expanding. The good thing is the market is also growing, so while low-
           cost carriers will grow their frequencies and networks. The rise in middle-income
           households combined with the many islands that make up the country meant air travel was
           the most efficient means of travel.


           Both Saratoga and Tiger refrained from disclosing the amount of money they have invested
           in Mandala. Mandala owed Rp 2.4 trillion ($262 million) to 114 of its suppliers, and Rp 27
           billion to more than 70,000 ticket holders. Mandala are committed to provide new Airbus
           A320. Initially Mandala will operate three planes and will operate 10 aircraft by the end of
           the year. It is also re-employing about 80 people from its former cabin crews, including 22
           pilots. The company is aiming to hire as many as 100 pilots by the end of the year.


      1|Page
Strategic Marketing Plan


           After the initial Jakarta-Medan route with 12 flights a week, Mandala will fly Medan to
           Singapore and Jakarta to Kuala Lumpur. The company will continue “analyzing and adjusting”
           its routes for the most effective and efficient operation.


           This market is not static, it is fast growing. Mandala will grow as Mandala offer more flights
           and more frequency. Mandala believes the company is operating in the right market at the
           right time.


      1.2 Introduction
            About Mandala Airlines
            Mandala Airlines is a low-cost carrier which the headquartered is in the Mandala Airlines
            Building in West Jakarta, Jakarta, Indonesia. Mandala operated scheduled services to 3
            international and 17 domestic destinations, used a fleet of narrow body Airbuses. Its main
            operational base is Soekarno-Hatta International Airport in Jakarta. The airline had
            positioned itself as a provider of safe and reliable service combined with a competitive
            pricing scheme. In January 2011, the Mandala operation is suspended and its air certificate
            of operation has been reactivated.


            The company was reported to have asked the commercial court to delay debt recovery
            action against the airline. The official application for postponement of debt payments to
            the Commercial Court has been filed for Rp.800 billion to about 271 creditors. At end of
            February 2011, the creditors had finally accepted the airline's debt settlement proposal to
            convert debt to equity. It was approved by 70.58 percent of total creditors from the total
            debt of Rp.2.4 trillion. After struggle with the funds, on September 24, 2011 the acquisition
            transaction was finally closed. Mandala would be back in the air 90 days after it, but
            certainly should get a new Air Operator Certificate first during it. Two Mandala aircraft
            have been checked by the Transportation Ministry inspectors and Mandala Airlines have to
            resume service by February 15, 2012 or its AOC license would be revoked. Mandala will
            have 10 aircraft within one year.


      2|Page
Strategic Marketing Plan


            Mandala resume their airline operations on April 5th, 2012, with one domestic route
            between its home base Jakarta and Medan. This will be followed by its first international
            destination when they launches the Medan-Singapore route on April 20th, 2012, adding a
            second Indonesian destination to Tiger's Singapore network after Jakarta. In May, Mandala
            also fly twice daily to Malaysia's capital Kuala Lumpur from Jakarta. The latest Mandala
            passengers who are still holding on to Mandala tickets after the company ceased
            operations in 2011, were offered a complimentary travel voucher redeemable through the
            company's new Tiger-based website.


            History about Mandala




                                                       Figure 1 :
                                                       Mandala Lockheed L-188 Electra at Perth
                                                       Airport (early 1990s).



            PT Mandala Airlines was founded on April 17th , 1969. The founders were Col. Sofjar, Maj.
            Gen. Raden Soerjo, Adil Aljol, Maj. (Air Force) Soegandi Partosoegondo, Kasbi Indradjanoe
            and Darwin Ramli. The airline was owned by PT Dharma Kencana Sakti, which was the
            commercial arm of Yayasan Dharma Putra Kostrad, a foundation linked to Kostrad, the
            strategic reserve command of the Indonesian army. The airline was named after Operation
            Mandala, the military operations to incorporate West Papua into Indonesia. The name also
            refers to Mandala, a Sanskrit term for a diagram symbolizing the universe, and it also being
            used as the logo of the corporation.


            In its early years Mandala Airlines operated flights between Jakarta and destinations in
            eastern Indonesia, such as Ambon, Gorontalo, Kendari, Makassar and Manado. In 1972,


      3|Page
Strategic Marketing Plan


            Mandala took over Seulawah Air Service (another military-owned airline), which flew to
            cities in western Indonesia, such as Banda Aceh, Banjarmasin, Medan, Padang, Palembang,
            Pekanbaru and Pontianak, giving the airline a national coverage.


            Under military management, Mandala Airlines kept a relatively quiet existence as a
            second-tier airline. In 1992, it retired the last of its aged turboprop fleet and replaced them
            with leased second hand jet aircraft. In 2001, it suffered a financial scandal, in which no
            less than IDR 135.5 billion (about USD 13.5 million) was stolen from the company funds by
            a senior Kostrad officer.


            Despite being awarded as Indonesia's "Most Potential Brand in Airlines Service" in 2002,
            Mandala found it hard to compete with other recently-emerged Indonesian airlines. In
            2005, Mandala experienced a high profile accident in Medan. At about the same time,
            political developments in Indonesia forced the military to divest itself of its businesses,
            resulting in Mandala Airlines being offered for sale. After the Indonesian government
            refused to take over Mandala Airlines, Cardig International acquired the airline for IDR 300
            billion (USD 34 million) in April 2006. Indigo Partners acquired 49% of Cardig's shares in
            October 2006.




                                                         Figure 2 :
                                                         An Airbus A319-100 in the current livery




      4|Page
Strategic Marketing Plan


            Within one year of its acquisition, Mandala Airlines transformed its image into a modern
            airline satisfying international standards of safety. It adopted the low-cost carrier model, in
            order to compete with other low-cost airlines in Indonesia. Mandala Airlines created a
            special niche among Indonesia's low-cost carriers by creating an image as a safe airline,
            taking advantage of the relatively young age of its fleet.


            Mandala has completed the IOSA (IATA Operational Safety Audit) of the International Air
            Transport Association (IATA), and other manufacturer audits. It contracted maintenance of
            its aircraft to Singapore Airlines Engineering Company (SIAEC). Its safety improvements
            were recognized by the European Union as Mandala was among four Indonesian airlines
            (the others were Garuda Indonesia, Airfast Indonesia and Premiair) officially struck from
            the EU airline ban list on July 14, 2009. Mandala is listed in Category 1 by the Indonesian
            Civil Aviation Authority for airline safety quality.


            In January 2009, Mandala Airlines completed the phasing out of its older Boeing aircraft,
            replacing them with newer Airbuses. On April 20, 2009, Mandala moved its Jakarta
            operations to the new Terminal 3 of the Soekarno-Hatta International Airport. In April 2010,
            Mandala Airlines announced international services to Hong Kong, Macau and Singapore,
            these services started on June 25, 2010.


            Shortly after services between Jakarta and Macau started on 21 July 2010, the airline
            announced that all flights between 22 to 29 August 2010 had been cancelled. Concerns
            were raised by some passengers that the company did not provide adequate information
            about the abrupt cancellations.


            On January 13, 2011, Mandala Airlines temporarily stopped flying all of their fleet due to
            debt problems. In May 2011, Singapore-based Tiger Airways thru Road Aviation Pte. Ltd.
            and Saratoga Investama, an Indonesian strategic investment company owned by Sandiaga
            Uno, announced their plans in a filing to the Singapore Stock Exchange on Thursday. Tiger


      5|Page
Strategic Marketing Plan


            Airways will acquire a 33 percent stake, while the Saratoga Group will buy 51 percent of
            Mandala. Mandala Airlines will focus on Low Cost Carrier (LCC) market because one of the
            shareholders, Tiger Airways also runs an LCC operation.


            Corporate identity




            Figure 3 :
            Mandala Corporate Identity


            The Mandala Airlines logo at figure 3, was used from 1969 to 2008. The airline's logo
            represent a golden eight-pointed mandala reflecting the eight characters of humanity and
            the eight elements in Javanese tradition, with a five-petaled lotus in its center reflecting
            Indonesia's five-principled state ideology, Pancasila.


            A new logo was unveiled on September 1, 2008, emphasizing the new image of the
            corporation. The new logo, designed by Veronica Halim & Eddy Purwanto from Nuage
            Branding, keeps the mandala and lotus theme of the original, but has a more streamlined
            design.


            The current livery of Mandala Airlines is a "Eurowhite" scheme, consisting of a white
            fuselage with a blue 'mandala' title. The company logo is applied on the tail and the
            outboard sides of engine nacelles. Mandala's previous livery was also a "eurowhite"
            scheme with a different typeface for the 'Mandala' title, a blue tail and the original logo.
            The airline's earliest scheme was a bare-metal lower and white upper fuselage with a blue
            cheat line across the cabin windows and a red 'MANDALA' title.




      6|Page
Strategic Marketing Plan


            Other recent liveries used by Mandala Airlines include a gold and blue wavy scheme with a
            large billboard 'Mandala' title introduced in early 2008, a mainly-white scheme with gold
            and blue hockey stick stripes on the fuselage and a blue tail, and an all-white scheme.
            Following its restructuring, the new hybrid Mandala livery reflects its status as Tiger
            Airways' partner airline in Indonesia by keeping the blue 'mandala' title on the fuselage of
            the Airbus A320 but having its wingtips and logo on the tail replaced with Tiger's stripes
            and colors.


            Destinations
            Mandala resumed operations on April 2012 with a daily flight between Jakarta and Medan.
            It was also announced in the same press release that the airline’s first international
            destination would be Kuala Lumpur in Malaysia. However, a few days later, Mandala
            quietly opened a new Medan-Singapore route for booking on its website, with flights
            commencing 20 April 2012 and operated by Mandala. Other routes that have been
            approved include Jakarta-Singapore and Singapore-Denpasar (Bali)-Jakarta.


            In-flight service
            Mandala Airlines is a single class service airline. It had a buy on board service offering food
            and beverages for purchase by passengers, but no in-flight entertainment. Seats were
            reserved and allocated during check-in. Free in-flight magazines and newspapers were
            provided during flight.


            Mandala Airlines had a baggage allowance of 20 kg (44 lb) per passenger, with an extra
            5 kg (11 lb) for priority passengers. Priority passengers also benefit from better seat
            locations (at the front of the aircraft), free lounge access and free food and beverages
            (both in lounges and during flight).




      7|Page
Strategic Marketing Plan


            Ticketing
            In line with current airline practice, Mandala Airlines utilized an electronic ticketing and an
            e-payment system. The airline had a 24-hour call center and a website for customers to
            book and pay for tickets electronically. Tickets for TransNusa destinations can be booked
            from the website, but flights involving the different airlines need separate bookings for
            each leg.


            The motivation behind the marketing strategy
            The good thing is the market is also growing, so while low-cost carriers will grow their
            frequencies and networks. The rise in middle-income households combined with the many
            islands that make up the country meant air travel was the most efficient means of travel.
            Mandala expects to tap the middle-income demographic, which had grown by 7 million
            people annually in recent years, creating a big pool of consumers increasingly seeking air
            travel. Mandala is optimistic about the Indonesian market and ready to compete with
            established budget airlines.




      8|Page
Strategic Marketing Plan


      Chapter 2
      Situation Analysis

      For the situation analysis, we do an analysis about the Macroeconomic Environment, Demand
      and demand trends for the products/services in airline industry, The Social and Demographic
      trends and also about the Industry environment it selves. The tools that we use are the 4C’s
      Diamond Analysis, The Curve Value Analysis, SWOT Analysis and The Customer Insight Analysis.


      2.1 4C’s Diamond Analysis
      The 4C’s Diamond consists of Changes, Customers, Company and Competition.




                                                  Figure 4 :
                                  The 4C’s Diamond of Mandala, Source : MIM




      9|Page
Strategic Marketing Plan


           1. Change
                a. Macroeconomic environment




                                                      Figure 5 :
                                          Indonesia Macroeconomic Situation


                     From the global market perspective, Indonesia macro economy has a big
                     achievement, although the world economic and politic is in crisis. Therefore
                     Indonesia is one of the potential investment targets for the investors. The Fourth
                     Cluster Driving Growth are food and beverages industry, Textiles, textile products,
                     and footwear industry, electronics and electronic components industry, and
                     transportation equipment’s and automotive components industry.


                b. Technology Trends
                     From the technology trends, we can see that Information Technology (IT) is
                     expanding very fast, especially in communication area. The Social Media are also
                     expanding and have some new revolutions, the internet is becoming very popular
                     and it has a huge networking in Indonesia area. Using the internet, now customer
                     could search any information they want to know, by searching at their official


      10 | P a g e
Strategic Marketing Plan


                     website or blogs (social media). And accessing the internet, now there are many
                     media customer can use, such as laptop, smartphones, Ipad etc.


                c. Social Culture
                     In the social culture area, the social media is now a phenomenon. Every people in
                     every level can access the internet easily. Because of the transforming of IT from
                     static to mobile, customer’s culture are now is mobile. They can access the internet
                     anytime and anywhere they want.


                d. Market
                     The growth of the aviation industry doubled from Indonesia's economic growth
                     average 20% -21% per year. In the Low cost carrier (LCC) service area, there are
                     more attractive to suck 80% market share.


                     The middle-class people of Indonesia increased by 7 million people each year. And
                     there are 60 million passengers by 2015 and 75 million by 2020. This opportunity is a
                     good market for Mandala with the concept of low cost carrier. So, the domestic
                     aviation, market still needs a lot of planes, at least up to 1,000 units considering
                     Indonesia is an archipelago, while from the side of the plane is still defeated by India,
                     China, even Singapore. Indonesia has a lot of business sectors that depend on the
                     airline business, which is the tourism sector.


                     Foreign airlines also took the market potential of Indonesia, foreign investment in
                     Indonesia will be the toughest rival for local airlines in Indonesia.


                     Based on the Airline market share, Lion air has a big market share comparing to the
                     competitor. Lion Air has 38.9% frequency share and 45.55% capacity share and 92
                     domestic routes. Meanwhile, Mandala only have 3% frequency share and 3%




      11 | P a g e
Strategic Marketing Plan


                     capacity share and 17 domestic routes. Surely this market share will grow in line
                     with the growth of the airline industry itself.


                            Airline     Frequency share        Capacity share       Domestic routes
                            Lion Air          38.9%                45.5%                    92
                            Garuda            20.9%                21.6%                    38
                           Indonesia
                            Batavia           12.7%                10.7%                    55
                       Sriwijaya Air           9.8%                 8.8%                    39
                            Merpati            7.4%                 5.9%                    41
                           Nusantara
                   Mandala Airlines            3.0%                 3.0%                    17
                   Indonesia AirAsia           1.6%                 1.8%                    6
                                                    Figure 6 :
                    Indonesia Airlines Market 2011 Market Share, Source: OAG Max Online for
                                               w/c 10 January 2011




                e. Politic & Legal
                     Based on the political and legal regulation of the Aviation Law and government
                     policy, airlines or foreign investor will still be able to build the airline in Indonesia, as
                     long as the majority of shares held by local investors. The rule on Law No.1, 2009 on
                     Aviation, the aviation world investment of at least 50 million U.S. dollars is very
                     burdensome and threatening local investors.


                     Besides the political and legal regulation of the Aviation Law and government policy,
                     Mandala also must aware about the aviation fuel price, it increase every year.


           2. Competitor
                The Asean Open Sky will be enacted in 2015, the national airline to compete with the
                airlines. Six airlines So Tight Competitors in Asean Open Sky. Three-in-class airline


      12 | P a g e
Strategic Marketing Plan


                services is a full service Singapore Airlines, Thai Airways, Malaysia Airlines, while three
                other carriers in the class cost (low cost carrier / LCC) is AirAsia, Tiger Airways and
                Jetstar Airways.


                The other issues from competitor Mandala must be aware are:
                •    Long haul flight is an trial to get undeveloped market share
                •    Differentiation from traditional LCC model by adding customer services or operation
                     as full service airline with low fare
                •    Ongoing industry consolidation has opened up prospects for new routes and airport
                     deals
                •    Full service airlines start cut costs to compete
                •    Entrance of other LCCs
                •    Increase in operation cost in producing value-added services
                •    System disruption due to heavily reliance on online sales
                •    The increase in customer’s requirements of higher-quality products/services


           3. Customer
                Customer more educated and has much information of taking a decision. Customers
                now have many choices and they are more demanding and difficult to be satisfied.


                Customer loyalty is decreasing because a lot of promotion that offer more benefits.
                Customers who are price- oriented segment is very big, but have low buying power.


           4. Company
                •    Company is value-decider
                •    The others 3C’s must be learned to see the effect to campany.
                •    The must existing competence analysis for the company.
                •    Base on the existing competence, take the stretch possibilities.
                •    Company has several choices that are go/invest, no no/hold, harvest and divest.


      13 | P a g e
Strategic Marketing Plan


                •    To decide the choice, depend on company risk attitude


      2.2 Curve Value Analysis
      The concept of a Value Curve is to use a diagram to compare products on a range of factors by
      rating them on a scale from low to high. These can be features, benefits or ways in which a
      product is distributed or consumed. The combination of these various factors defines the
      product or service.


      Multiple Value Curves should be drawn, to allow a visual comparison with competitive products
      and to unearth possible spaces or gaps in the market. By investigating the feasibility of these
      gaps (Will customers want this? Can you afford to offer this?) It may be possible to identify
      changes to the product that significantly alter the value proposition. From figure 7, Mandala in
      orange comparing it to the competitors.




                                                  Figure 7 :
                                              Mandala Curve Value




      14 | P a g e
Strategic Marketing Plan


      In The Curve value is seen some element as a key success factor for performance of the airline,
      the assessments seen from the price offered, the availability of food, lounge facilities, seat
      selection service, Hub Connectivity, speed and timeliness, coming from different cities,
      amenities and services trunk.


      Key success factors over the course of each different airline companies. This difference is the
      goal to provide the best service and win competition.


      2.3 SWOT Analysis
      The SWOT Analysis is the fundamental concept, determining the strengths, weaknesses,
      threats, and opportunities for Mandala.



                     SWOT                   Strength                     Weakness


                                          Strength-                   Weaknesses-
             Opportunities              Opportunities                 opportunities
                                             (SO)                        (WO)

                                            Strength-                 Weaknesses-
                     Treats
                                           Treats (ST)                Treats (WT)

                                                 Figure 8 :
                                           Mandala SWOT Analysis
      The explanation about Mandala SWOT Analysis at Figure 8 can bee seen in Exhibit 1 : Mandala
      SWOT Matrix Analysis and for the detailed IPAS (Internal Factors Analysis Summary) and EPAS
      (External Factors Analysis Summary) of Mandala could be seen in Exhibit 2 : Mandala IPAS and
      EPAS.



      15 | P a g e
Strategic Marketing Plan




      Mandala Strength are :
           1. Shares owned Mandala Saratoga Capital (51%), Tiger Airways (33%), concurrent credit
                of 15%, and the old shareholders Cardig and Indigo (1%).
           2. Tiger Sandiaga and prepare capital of U.S. $ 250 million.
           3. Tiger Airways business model adopted.
           4. Low-cost airline
           5. Mandala operated scheduled services to three international and 17 domestic
                destinations, used a narrow-body fleet of Airbuses.
           6. The name Mandala is not changed
           7. Safe and reliable flights
           8. Tiger Airways, together with its associated airlines, operates a fleet of 32 Airbus A320
                aircraft


      Mandala Weaknesses are :
           1. Service resource is limited by lower costs Limited human resources Situation Could not
                handle irregular.
           2. Government interference and regulation on airport deals and passenger compensation.
           3. Non-central location of secondary airports.
           4. Brand is vital for market position and developing it is always a challenge
           5. Heavy reliance on outsourcing
           6. New entrants to Provide the price-sensitive services
           7. Mandala is still not a good name in the public eye since 2011 had been frozen.
           8. The plane is still not much
           9. Mandala routes are limited.
           10. Other companies using the LCC business model too.
           11. New Mandala will penetrate the Jakarta-Medan route. As for the international flights
                will start from Jakarta to Kuala Lumpur, Malaysia.




      16 | P a g e
Strategic Marketing Plan




      Mandala Opportunities are :
          1. The growth of the aviation industry average of 20% -21% per year.
          2. Long haul flight to get your trial is an undeveloped market share
          3. Differentiation from traditional LCC models by adding customer services or as full-service
               operation with a low fare airline
          4. Ongoing industry consolidation has opened up prospects for new routes and airport
               deals
          5. High fuel prices will squeeze out unprofitable competitors
          6. Service low cost carrier (LCC) more attractive to suck 80% market share.
          7. 16 domestic routes and four international routes
          8. Target the middle class 7 million people each year.
          9. Increased tourism sector
          10. 60 million passengers by 2015 and 75 million by 2020.
          11. Mandala will operate 10 Airbus A320 aircraft.
          12. Aviation Law. Airlines or foreign investment will still be able to build the airline in
               Indonesia, as long as the majority of shares held by local investors.
          13. Expand the technology of the website (ie iPhone apps, etc.)


      Mandala Treats are:
          1. Full service airlines cut costs start to Compete
          2. Entrance of other LCCs
          3. High fuel price decreases yield
          4. Accident, terrorist attack, and disaster and affect customer confidence
          5. Aviation regulation and government policy
          6. Increase in operation cost in producing value-added services
          7. System Disruption due to Heavily reliance on online sales
          8. Asean Open Sky enacted in 2015




      17 | P a g e
Strategic Marketing Plan


          9. Six airlines So Tight Competitors in Asean Open Sky (Singapore Airlines, Thai Airways,
               Malaysia Airlines, AirAsia, Tiger Airways and Jetstar Airways.
          10. The regulation on Law No. 1,2009 on Aviation, the aviation world investment of at least
               50 million U.S. dollars is very burdensome and threatening local investors.
          11. Foreign airlines also eyeing the market potential of Indonesia, foreign investment in
               Indonesia will be the toughest rival for local airlines in Indonesia.
          12. The increase of in aviation fuel prices
          13. The increase of in the customer's requirements of higher-quality products / services
          14. Tiger Airways Mandala proposed name is replaced with the name Tiger.


      The correlation explanation between the strengths, weaknesses, threats, and opportunities are:
           1. Strength/ opportunities (SO)
                     1. Increase Market Share
                     2. Increase Sales & Revenue
                     3. Expand current customer rewards program to build customer loyalty.
                     4. Expand freight air portion into former Tiger Airway and Local areas
                     5. Mandala Airlines utilized an electronic ticketing and an e-payment system. The
                           airline had a 24-hour call center and a website for customers to book and pay for
                           tickets electronically
           2. Weaknesses/ opportunities (WO)
                     1. Build Strong Mandala Brand
                     2. Increase number of airplanes
                     3. addition Route
                     4. Improve efficiency through the use of aircraft Airbuss
                     5. Focus on service, speed and departure point-to-point.
           3. Strength/ Treats (ST)
                     1. Expand brand recognition as top low-cost air carrier to eliminate competition.
                     2. Retain low-cost operating strategy to remain competitive.
                     3. Focus on the importance of safety, security, and service.


      18 | P a g e
Strategic Marketing Plan


                     4. Focus on the timeliness
                     5. Offer the most competitive price


           4. Weaknesses/ Treats (WT)
                     1. Increase load capacity to get
                     2. maximum value out of jet fuel.
                     3. Initiate employee rewards program for productivity and customer retention.
                     4. Create expanded strategy and growth plan to thwart competition.
                     5. Reduce the cost of jet fuel that will decrease operational costs


      2.4 Competitor Analysis based on 4P’s
            We also analyze the competitor using the 4P’s, which are Product, Price, Place and
            Promotion. For the competitor analysis, we try to compare some of airline industry in
            Indonesia, which are : Lion Air, Sriwijaya Air, Air Asia, Merpati Nusantara Airlines, Batavia
            and Garuda : Citilink Airlines. The competitor profile can be seen in Exhibit 3 : The
            Competitor Profile.
                     1. Product
                           The product is an airline services, at the Low Cost Carrier Airlines segment.
                     2. Price
                           The detailed price comparison can be seen in Exhibit 4 : The Airlines Price
                           Comparison
                     3. Place
                           In the airline industry, place means the media that customer can buy the tickets.
                           The detailed place for the ticketing can be seen in the Exhibit 5 : The Airlines
                           Ticketing Place
                     4. Promotion
                           The detailed place for the ticketing can be seen in the Exhibit 6 : The Airlines
                           Promotions




      19 | P a g e
Strategic Marketing Plan




      2.5 Consumer’s Insights
      To have a strong in the analysis of Mandala and to make an accurate marketing strategy of
      Mandala, we have approach some of the airlines customers. The goals is to have the insights
      from the customer’s perspective about their experience using airline services.


      Using a quantitative research method, the specific research method we use are Deep Interview,
      Story Telling and Netnography. The goals of this research are getting a closer look and detailed
      information about :
               the segmentation and the customer target,
                the customer behavior,
               the insights of the airlines customer,
               any supporting factors and inhibiting factors in the process of the brand development
               find new and fresh idea for the new development strategy


           1. Deep Interview and Story Telling Method
                The process of collecting the data, we had a deep interview for 50 customer, who are
                divided in to 2 characteristic, the users of the new mandala and the non-users of
                Mandala. And the analysis based on the interview are divided in to 3 :
                     1. Customer’s Profile
                     2. Airlines Profile
                     3. Mandala Brand Awareness




      20 | P a g e
Strategic Marketing Plan




                1. Costumer’s Profile




                                                      Figure 9 :
                                        Customer’s Insights: Customer’s Profile


           Based on the deep interview, 100% of the respondents have traveled within a year.
           Majority in 36% they traveled 4-8 times/ year, 29% they have traveled 1-3 times/year, 21%
           have traveled >12 times/year and 14% they have traveled 8-12 times/year.


           For the domestic destination, 13 % of the travelers, travels to Yogyakarta and Surabaya, 9%
           of the travelers, travels to Semarang, Makasar and Denpasar, etc.


           For the international destination, 37% of the travelers, travels to Singapore, 18% travels to
           Kuala Lumpur, 13% travels to Bangkok and 11% travels to Hongkong, etc.



      21 | P a g e
Strategic Marketing Plan




                2. Airline Profile




                                                      Figure 10 :
                                     Customer’s Insights: Customer Transportation


           We asked the respondent about the transportation they use to travel. For the international
           destination, 100% are using airplane. But for the domestic destination, 79% are using
           airplane, 13% they travel using their own vehicle, 7% using public transportation such as bus
           or travel agencies and 1% are still using train.




      22 | P a g e
Strategic Marketing Plan




                                                   Figure 11 :
                                       Customer’s Insights : Airline’s Profile




           For the airline’s profile, customer’s bought their ticket 71% using online services and 29%
           are using travel agent.


           For the airlines corporation they use, majority use Air Asia and Garuda (30%) and 13% using
           Mandala Air and Lion Air. And the reason they are using these airlines are 79% because of
           the price, 75% are because of the promo offered, 65% are because of the Route hub and 57
           % are because of the airlines provide’s foods and the punctual time.


           There are 46% of the customer who are not aware of the type of the plane.




      23 | P a g e
Strategic Marketing Plan


                3. Mandala Brand Awarness




                                                  Figure 12 :
                                Customer’s Insights: Mandala Brand Awareness


      All of the respondent have heard about Mandala (100%) and 69% of it have flight using
      Mandala because of the Good Service and Good Pilot (Landing) – 18%, 16% because of the fair
      price, 14 % because of the easy and quick to do reservation online and the clean-comfort of the
      airplane and also the punctual time.


           2. Netnography Method


      In netnography methode, we try to capture consumer insight through the social media. The
      information about Mandala’s return have some pro and some contra.


      Here are some pro about the return of Mandala. They are happy about the returning of
      Mandala. The detailed about the pro of the return of Mandala can be seen in Exhibit 7 :
      Netnography Customer Pro


      24 | P a g e
Strategic Marketing Plan




                                                 Figure 13 :
                                    Customer’s Insights: Netnography #1


      Here are some contra about the return of Mandala :
      The detailed about the contra of the return of Mandala can be seen in Exhibit 8 : Netnography
      Customer Contra




                                                 Figure 14 :
                                    Customer’s Insights: Netnography #2


      25 | P a g e
Strategic Marketing Plan




      Chapter 3
      Marketing Segmentation, Target Market, and Positioning




                                                   Figure 15 :
                           Mandala Marketing Segmentation, Target Market and Positioning


           3.1 Market Segmentation
                Mandala market Segmentation are travelers, promo lovers, shopaholic and value added
                seeker.


           3.2 Target Market
                The Mandala’s target market is the Value Added Seeker which leads to people looking
                for added value at a low price. This opportunity is a good market for Mandala with the
                concept of low cost carrier.


           3.3 Positioning
                Mandala will position itself to consumer’s mind as an low-cost airline (low cost carrier),
                which focuses on the “Low Price - High Value” by applying the importance of safety,
                security, service and timeliness.




      26 | P a g e
Strategic Marketing Plan


      Chapter 4
      Marketing Goal and Objectives



      Marketing goal and objectives :
                            Build a strong Mandala Brand
                            Communicate the New Mandala Values and Commitment
                            Increase Market Share
                            Increase Sales & Revenue
                            Open new route with lower costs
                            Create Mandala New Experience




      27 | P a g e
Strategic Marketing Plan




      Chapter 5
      Marketing 4C’s Strategies and Tactics

      To reach the marketing goals which are building a strong Mandala Brand , Communicate the
      New Mandala Values and Commitment , Increase Market Share , Increase Sales & Revenue
      Open new route with lower costs and Create Mandala New Experience, here are the Marketing
      4C’s Strategies and Tactics :




                  Consumer                   Cost               Convenient           Communication




                                                      Figure 16 :
                                     Mandala Marketing 4C’s Strategies and Tactics



                     5.1 Consumer
                           For the product, Mandala will open a new route expanding and exploring the
                           east of Indonesia which are not touched by the other airlines. Mandala will also
                           open new rout to Bali, and Maluku.




      28 | P a g e
Strategic Marketing Plan



                                                Full Service               Not Favorite
                  New Route
                                               Airlines Route                Route
                • Medan –                      • Medan – Bali           • Medan - Maluku
              Singapore – Raja
              Ampat/Wakatobi

                                                      Figure 17 :
                                         Consumer: New Product Development


                     5.2 Cost
                           The cost/price strategy is to set the price to be affordable. Below Full Service and
                           average Low Cost Carrier Airways




                                                       Figure 18 :
                                           Cost : Bowman’s Strategic Options
                                  Ancillary Fees:
                                  Reservation changes, baggage limitations, frequent flyer point sales,
                                  concession



      29 | P a g e
Strategic Marketing Plan




                                  In-flight service
                                     Mandala Airlines is give choices of seats class service airline. It had a
                                      buy on board service offering food and beverages for purchase by
                                      passengers, but no in-flight entertainment. Seats were reserved and
                                      allocated during check-in. free in-flight magazines or newspapers and
                                      blanket were provided during flight.
                                     Mandala Airlines had a baggage are included in the flight price about
                                      20 kilos. Priority passengers also benefit from better seat locations (at
                                      the front of the aircraft), free lounge access and free food and
                                      beverages (both in lounges and during flight).


                     5.3 Convenient
                           Here are the convenient for the New Mandala, and for the Mandala Website can
                           be seen in Exhibit 9 : Mandala Website.


                              Mandala web site
                            website for customers to        Mandala Bye-Pass®
                                                                                        Mobile Web program
                            book and pay for tickets     airport self-service kiosks
                                electronically.



                             Travel agency web sites
                                                            Corporate booking             Traditional travel
                                (e.g. Travelocity,
                                                                agencies                      agencies
                                     Expedia)



                                In line with current
                             airline practice, Mandala                                     Mandala T.T.M
                                                         The airline had a 24-hour
                                 Airlines utilized an
                                                                 call center            Ticket Teller Machine
                              electronic ticketing and
                               an e-payment system.
                                                        Figure 19 :
                                            Convenient for the New Mandala




      30 | P a g e
Strategic Marketing Plan


                     5.4 Communication
                           For the communication about the new Mandala, first we clarify the brand first.




                                                          Figure 20 :
                                             Clarification of Mandala Brand


                           The marketing vision for Mandala is being the Low Cost Carrier Airline icon as the
                           market leader in the LCC Airlines. The core are is being the brand leadership
                           premium.




      31 | P a g e
Strategic Marketing Plan


                1. Brand Strategy Platform
                           Mandala Brand Strategy platform:
                           Brand target is for the Value Added Seeker, with the brand essence is Everyone
                           already fly. The brand positioning is the Low Price-High Value and for the brand
                           personality is the active dynamic and modern people.




                                                     Figure 21 :
                                           Mandala Brand Strategy Platform


                                  Looking at the Value Curve, it’s very obvious that the Mandala Direct
                                  offering differs greatly to its competitor. By cutting out costly traditional
                                  elements such as ticket price. It provides food and convenient lounge
                                  with a higher value than rivals. Mandala position the brand as the airline
                                  with low price-high value. The competitor did not provide more benefits
                                  to its customers. Therefore Mandala provides additional value such as a
                                  dining and lounge facilities. Mandala Direct's service is for everyone.




      32 | P a g e
Strategic Marketing Plan




                                                  Figure 22 :
                                          The New Mandala Value Curve


                2. Co creation
                     Co-creation, maintaining the quality of Mandala services and Maintain the service of
                     the product. We create new services for Mandala customers especially in the
                     reservation area; we call it Mandala Check and Go. The website would be more
                     simple, easy and quick to access. The aim is to attract more customers especially in
                     value added seeker. People who are a value added seeker, has a very concern in
                     time and seeking for the product quality especially the benefits for themselves
                     comparing to others. Maintain the service of the product; the aim is to satisfy and
                     create more value to the customers.


                3. Communal Activation
                     Mandala must create a creative outlet to attract customers. The outlet must have a
                     unique experience like the products, combine with some activities. The activity must


      33 | P a g e
Strategic Marketing Plan


                     take place at malls or office area. The creative outlet we named it Mandala Lovers’
                     Near You!


                4. Conversation, we use 360 degrees to 365 days a year strategy include inside
                     advertising, brand activation, digital media activities, and PR Events. Mandala must
                     create a community itself. Our suggestion name is Mandala Lovers. The community
                     contains people with the same interest, value added seeker.


                     The Campaign :


                            Global Campaign      Local Campaign

                                 Where can Fly    All You Can Fly        promotions allowed consumers
                                   and for the                              to buy a monthly pass for
                                         Local                             unlimited travel to Mandala
                                                                         destinations. Mandala believes
                                                                         half of the buyers had not flown
                                                                                    them before




                                                  Figure 22 :
                                        The New Mandala Brand Campaign




      34 | P a g e
Strategic Marketing Plan


      The following table describes how Mandala's marketing program supports its brand position.
      360 degrees Communication Framework :




                                                     Figure 23 :
                                      The New Mandala 360 degree Communication




                5. Commercialization
                          To create the buzz, name we name the activation Mandala Near You! The outlet
                           for exhibition should not stay long, so the customer could search for Mandala
                           and wondering what’s their New Unique Experience.
                          Creative and interactive sales promotion, especially in the social media to boost
                           the awareness.
                          Social Media, Extensive use of social media allows Mandala to create buzz with
                           very little cost.



      35 | P a g e
Strategic Marketing Plan


                          Website, Visitors to www.Mandalaair.com can browse an Experience Mandala
                           section that features videos of consumers talking about the various benefits of
                           flying Mandala (e.g., space, entertainment, etc.)
                          Mandala Flyer Lovers, This loyalty program to address customers' desire for the
                           elimination of blackout dates, an extended lifespan for points, and a shift to
                           points for miles flown rather than money spent.
                          Continue to Stress Differentiation, Mandala’s new You Above All campaign is
                           built upon stressing the idea that the flying experience is significantly better with
                           Mandala than with other airlines. Continuing this focus is the best way to ensure
                           customer know what Mandala Air stands for, especially as the company’s ability
                           to continually provide a significantly lower price comes into question.
                          Leverage Integrated Customer Service System, Mandala’s new customer service
                           system11 provides a great way for the company to profile its customer base,
                           investigate customer actions, and understand key loyalty drivers. Using this tool
                           to build a targeted marketing program that tailors messages to customers will
                           enable Mandala to increase effectiveness.
                          Target Price Sensitive People, Mandala is in a unique position to target
                           customers who are a value added seekers during tough economic times. As a
                           discount provider who also focuses on customer service, they can appeal to cost-
                           sensitive people that need to cut travel costs but don’t want to sacrifice comfort,
                           convenience, and modernity. Mandala should investigate opportunities to
                           increase corporate travel partnerships.




      36 | P a g e
Strategic Marketing Plan




      Chapter 6 :
      Controls – progress measurement and monitoring

      Controls – progress measurement and monitoring




                                                    Figure 24 :
                           The Mandala Controls – progress measurement and monitoring


      We suggest Mandala could be concern to the customer loyalty. Nowadays, many brands are trying hard
      to grab attention and getting new customer. Instead of investing to grab new market which are not
      necessarily loyal, the most important thing is maintain your customer not searching for new customer.
      Mandala and Tiger already has their own community, we just have to maintain them and make them
      loyal. If the customers are loyal, then they are Mandala Lovers Stars, who will share experience about
      the product and suggesting people to buy the product without asking any compliment. So, let Mandala
      Lovers Stars be Mandala Word Of Mouth Agent. That’s why we use Return on Marketing Investment
      (ROMI) to see the optimization of marketing activities in the short and long term to increased revenue,
      profit and also market share.




      37 | P a g e
Strategic Marketing Plan


      Reference
                Keller, Kevin Lane. 2008, Strategic Brand Management, Building, Measuring and
                Managing Brand Equity, Pearson

                Kim, W.Chan and Mauborgne R., 2005. Blue Ocean Strategy : How To Create
                Uncontested Market and Make Competition Irrelevant, Harvard Business School
                Publishing Corporation

                Kotler, Philip and Keller, Kevin Lane. 2006. Marketing Management. Pearson

                Rangkuti, Freddy. 2009, Analisis SWOT : Teknik Membedah Kasus Bisnis, PT. Gramedia
                Pustaka Utama.




      38 | P a g e
Strategic Marketing Plan


      Appendix

      Exhibit 1 : Mandala SWOT Matrix Analysis
      Exhibit 2 : Mandala IPAS and EPAS
      Exhibit 3 : The Competitor Profile
      Exhibit 4 : The Airlines Price
      Exhibit 5 : The Airlines Ticketing Place
      Exhibit 6 : The Airline Promotion
      Exhibit 7 : Netnography : Customer Pro
      Exhibit 8 : Netnography : Customer Contra
      Exhibit 9 : Mandala Website




      39 | P a g e
Strategic Marketing Plan




      Exhibit 1 : Mandala SWOT Matrix Analysis


                              Strength                                Weaknesses

                                 1. Shares owned Mandala                 1. Service resource is limited by lower
                                    Saratoga Capital (51%),                 costs Limited human resources
                                    Tiger Airways (33%),                    Situation Could not handle irregular.
                                    concurrent credit of 15%,
                                    and the old shareholders             2.    Government interference and
                                    Cardig and Indigo (1%).                   regulation on airport deals and
                                                                              passenger compensation.
                                 2. Tiger Sandiaga and
                                    prepare capital of U.S.              3. Non-central location of secondary
                                    $ 250 million.                          airports.

                                 3. Tiger Airways business               4. Brand is vital for market position and
                                    model adopted.                          developing it is always a challenge

                                 4.   Low-cost airline                   5. Heavy reliance on outsourcing

                                 5.    Mandala operated                  6. New entrants to Provide the price-
                                      scheduled services to                 sensitive services
                                      three international and 17         7. Mandala is still not a good name in
                                      domestic destinations,                the public eye since 2011 had been
                                      used a narrow-body fleet              frozen.
                                      of Airbuses.
                                                                         8. The plane is still not much
                                 6. The name Mandala is not
                                    changed                              9. Mandala routes are limited.

                                 7.   Safe and reliable flights          10. Other companies using the LCC
                                                                             business model too.
                                 8.   Tiger Airways, together
                                      with its associated                11. New Mandala will penetrate the
                                      airlines, operates a fleet of          Jakarta-Medan route. As for the
                                      32 Airbus A320 aircraft                international flights will start from
                                                                             Jakarta to Kuala Lumpur, Malaysia.




      40 | P a g e
Strategic Marketing Plan


      Opportunities                       Strength/ opportunities (SO)          Weaknesses/ opportunities (WO)

      1. The growth of the aviation          1. Increase Market Share              1. Build Strong Mandala Brand
      industry average of 20% -21%
      per year.                              2. Increase Sale & Revenue            2. Increase number of pesawat
      2. Long haul flight to get your        3. Expand current customer            3. addition Route
      trial is an undeveloped market            rewards program to build
      share                                     customer loyalty.                  4. Improve efficiency through the use of
      3. Differentiation from                                                         aircraft Airbuss
      traditional LCC models by adding       4.    Expand freight air portion
                                                  into former Tiger Airway         5. Focus on service, speed and
      customer services or as full-
                                                  and Local areas                     departure point-to-point.
      service operation with a low fare
      airline
                                             5. Mandala Airlines utilized
      4. Ongoing industry
                                                an electronic ticketing and
      consolidation has opened up
                                                an e-payment system. The
      prospects for new routes and
                                                airline had a 24-hour call
      airport deals
                                                center and a website for
      5. High fuel prices will squeeze
                                                customers to book and
      out unprofitable competitors
                                                pay for tickets
      6. Service low cost carrier (LCC)
                                                electronically
      more attractive to suck 80%
      market share.
      7. 16 domestic routes and four
      international routes
      8. Target the middle class 7
      million people each year.
      9. Increased tourism sector
      10. 60 million passengers by
      2015 and 75 million by 2020.
      11. Mandala will operate 10
      Airbus A320 aircraft.
      12. Aviation Law. Airlines or
      foreign investment wilcl still be
      able to build the airline in
      Indonesia, as long as the
      majority of shares held by local
      investors.
      13. Expand the technology of
      the website (ie iPhone apps,
      etc.)




      41 | P a g e
Strategic Marketing Plan


      Treats                               Strength/ Treats (ST)               Weaknesses/ Treats (WT)

      1. Full service airlines cut costs      1. Expand brand recognition         1. Increase load capacity to get
      start to Compete                           as top low-cost air carrier
      2. Entrance of other LCCs                  to eliminate competition.        2. maximum value out of jet fuel.
      3. High fuel price decreases yield                                          3. Initiate employee rewards program
      4. Accident, terrorist attack, and      2. Retain low-cost operating
                                                 strategy to remain                  for productivity and customer
      disaster and affect customer                                                   retention.
      confidence                                 competitive.
      5. Aviation regulation and                                                  4. Create expanded strategy and growth
                                              3. Focus on the importance
      government policy                          of safety, security, and            plan to thwart competition.
      6. Increase in operation cost in           service.                         5. Reduce the cost of jet fuel that will
      producing value-added services
                                              4. Focus on the timeliness             decrease operational costs
      7. System Disruption due to
      Heavily reliance on online sales
                                              5. Offer the most
      8. Asean Open Sky enacted in
                                                 competitive price
      2015
      9. Six airlines So Tight
      Competitors in Asean Open Sky
      (Singapore Airlines, Thai
      Airways, Malaysia Airlines,
      AirAsia, Tiger Airways and
      Jetstar Airways.
      10. The regulation on Law No.
      1,2009 on Aviation, the aviation
      world investment of at least 50
      million U.S. dollars is very
      burdensome and threatening
      local investors.
      11. Foreign airlines also eyeing
      the market potential of
      Indonesia, foreign investment in
      Indonesia will be the toughest
      rival for local airlines in
      Indonesia.
      12. The increase of in aviation
      fuel prices
      13. The increase of in the
      customer's requirements of
      higher-quality products /
      services
      14. Tiger Airways Mandala

      42 | P a g e
Strategic Marketing Plan


      proposed name is replaced with
      the name Tiger.




      Exhibit 2 : Mandala IPAS and EPAS
      IFAS & EFAS Analysis
                           Internal Factors                      Weight    Rating       Weighted
                               Strength                                                  Score
        Shares owned Mandala Saratoga Capital (51%),
        Tiger Airways (33%), concurrent credit of 15%, and          0.08            4        0.32
        the old shareholders Cardig and Indigo (1%).
        Tiger Sandiaga and prepare capital of U.S. $ 250
                                                                    0.05            2         0.1
        million.
        Tiger Airways business model adopted.                       0.03            1        0.03
        Low-cost airline                                            0.03            3        0.09
        Mandala operated scheduled services to three
        international and 17 domestic destinations, used a          0.09            2        0.18
        narrow-body fleet of Airbuses.
        The name Mandala is not changed                             0.12            4        0.48
        Safe and reliable flights                                   0.11            3        0.33
        Tiger Airways, together with its associated airlines,
                                                                     0.1            4         0.4
        operates a fleet of 32 Airbus A320 aircraft
                                                         Total      0.61            3        1.93

                             Weaknesses
        Service resource is limited by lower costs Limited
        human resources Situation Could not handle
        irregular.                                                   0.1            4         0.4
        Government interference and regulation on airport
        deals and passenger compensation.                           0.07            1        0.07
        Non-central location of secondary airports.                 0.04            3        0.12
        Brand is vital for market position and developing it
        is always a challenge                                        0.1            4         0.4
        Heavy reliance on outsourcing                               0.06            2        0.12

      43 | P a g e
Strategic Marketing Plan


        New entrants to Provide the price-sensitive services          0.03               2        0.06
        Mandala is still not a good name in the public eye
        since 2011 had been frozen.                                   0.03               3        0.09
        The plane is still not much                                   0.03               3        0.09
        Mandala routes are limited.                                   0.03               3        0.09
        Other companies using the LCC business model too.             0.03               3        0.09
        New Mandala will penetrate the Jakarta-Medan
        route. As for the international flights will start from
        Jakarta to Kuala Lumpur, Malaysia.                            0.04               3        0.12
                                                           Total      0.39               3        1.18
                                TOTAL                                       1            3        2.05



        EFE Matrix for Mandala Airlines
                            External Factors                       Weight       Rating       Weighted
                             Opportunities                                                    Score
         The growth of the aviation industry average of 20%
        -21% per year.                                                0.07               3        0.21
        Long haul flight to get your trial is an undeveloped
        market share                                                  0.12               4        0.48
        Differentiation from traditional LCC models by
        adding customer services or as full-service
        operation with a low fare airline                             0.05               1        0.05
        Ongoing industry consolidation has opened up
        prospects for new routes and airport deals                    0.05               1        0.05
        High fuel prices will squeeze out unprofitable
        competitors                                                   0.04               2        0.08
        Service low cost carrier (LCC) more attractive to
        suck 80% market share.                                        0.04               3        0.12
        16 domestic routes and four international routes              0.04               3        0.12
        Target the middle class 7 million people each year.           0.04               3        0.12
        Increased tourism sector                                      0.04               3        0.12
         60 million passengers by 2015 and 75 million by
        2020.                                                         0.04               3        0.12
        Mandala will operate 10 Airbus A320 aircraft.                 0.04               3        0.12
         Aviation Law. Airlines or foreign investment will
        still be able to build the airline in Indonesia, as long
        as the majority of shares held by local investors.            0.04               3        0.12
        Expand the technology of the website (ie iPhone
        apps, etc.)                                                   0.04               3        0.12
                                                           Total      0.37               3        1.83


      44 | P a g e
Strategic Marketing Plan


                              Threats
        Full service airlines cut costs start to Compete        0.06   4   0.24
        Entrance of other LCCs                                  0.05   1   0.05
        High fuel price decreases yield                         0.06   3   0.18
         Accident, terrorist attack, and disaster and affect
        customer confidence                                     0.12   3   0.36
         Aviation regulation and government policy              0.06   1   0.06
        Increase in operation cost in producing value-added
        services                                                0.06   2   0.12
        System Disruption due to Heavily reliance on online
        sales                                                   0.04   1   0.04
         Asean Open Sky enacted in 2015                         0.03   1   0.03
        Six airlines So Tight Competitors in Asean Open Sky
        (Singapore Airlines, Thai Airways, Malaysia Airlines,
        AirAsia, Tiger Airways and Jetstar Airways.             0.04   1   0.04
        The regulation on Law No. 1,2009 on Aviation, the
        aviation world investment of at least 50 million U.S.
        dollars is very burdensome and threatening local
        investors.                                              0.02   1   0.02
        Foreign airlines also eyeing the market potential of
        Indonesia, foreign investment in Indonesia will be
        the toughest rival for local airlines in Indonesia.     0.04   1   0.04
         The increase of in aviation fuel prices                0.02   1   0.02
        The increase of in the customer's requirements of
        higher-quality products / services                      0.03   1   0.03
         Tiger Airways Mandala proposed name is replaced
        with the name Tiger.                                    0.63   1   1.23
                                 TOTAL                            1    3   3.06




      45 | P a g e
Strategic Marketing Plan




   Exhibit 3 : The Competitor Profile
                                  Mandala Air                     Lion Air               Sriwijaya Air              Air Asia           Merpati         Batavia Air              Citilink
                                                                                                                                      Nusantara
                                                                                                                                       Airlines
                              PT Saratoga Investment      PT Lion Mentari Airlines     PT. Sriwijaya Air     PT. Indonesia AirAsia.                 PT. Metro Batavia
                                Group (51%), Tiger
                            Airways(33%), Kreditur dan
                           pemegang saham lama (16%)
      Presiden Direktur           Diono Nurjadin                Rusdi Kirana             Chandra Lie                                    Sardjono                             Joseph Saul
                                                                                                                                          Jhony
                                                                                                                                      Tjitrokusum
                                                                                                                                            o
      Mulai Beroperasi        17 April 1969, Berenti          19 Oktober 1999                2003                                           6        5 Januari 2002         8 Agustus 2008
                           beroperasi 10 Januari 2011 –                                                                               September
                                   4 April 2012                                                                                            1962
           Aliansi                Tiger Airways                 Wings Air                      -
           Slogan            Partner Airlines of Tiger      We make people fly                                                                                             Enjoy Simplicity
                                     Airways
         Jenis Kelas                                               Bisnis                      -
                                                                 Ekonomi
      Program Frequent                                       Lion Pasport Club                 -                                        Merpati
            Flier                                                                                                                      EasyFlyer
     Lounge Penumpang           Mandala Priority             Lion King Lounge                -
          Website             www.mandalaair.com             www.lionair.co.id       www.sriwijayaair.co.i                            www.merpa      www.batavia-
                                                                                             d                                          ti.co.id       air.co.id
       Facebook #fans                                                                                                                  Merpati
                                                                                                                                       airlines #
                                                                                                                                         2.432
     Twitter #followers      @mandalaair #8.917            @lionairliners # 2.384     @SriwijayaairSJ        @airasiaid #147.745      @merpati_i      @bataviaair          @citilink #18.154
                            @tigerairways #11.467                                          #2.703                                     nfo # 5.011      #3.242
                            @tigerairwayssg #14.280                                  @Sriwijayaair #1.200
       Twitter tweets         @mandalaair #632                         0             @SriwijayaairSJ #18            30.929               6.330              28                     8.147
                              @tigerairways #352                                      @Sriwijayaair #2
                            @tigerairwayssg #1.063
          Youtube                                                                                                                                                               Citilink
       Jumlah Armada                   11                              72                    29                                           33
         Kota Tujuan                   16                              61                    36                                           87
            Jawa                                          Jakarta                       o    Bandung                 Jakarta                                                       Surabay
                                                          Yogyakarta                    o    Jakarta                 Surabaya                          o        Jakarta              a
                                                          Surabaya                      o    Malang                  Bandung                           o        Semara               (Bandar
                                                                                        o    Semarang                Semarang                                   ng                   Udara


               46
Strategic Marketing Plan
                                           o   Solo                      Yogyakarta   o   Solo                 Internasi
                                           o   Surabaya                  Solo         o   Yogyak               onal
                                           o   Yogyakarta                                  arta                 Juanda)
                                                                                       o   Suraba              Jakarta
                                                                                           ya                   (Bandar
                                                                                       o   Malang               Udara
                                                                                                                Internasi
                                                                                                                onal
                                                                                                                Soekarn
                                                                                                                o-Hatta)

         Bali & NTT        Denpasar     Denpasar             Denpasar                  o   Denpas    Denpasar
                                        Kupang                                             ar
                                                                                       o   Matara
                                                                                           m
                                                                                       o   Kupang
        Kalimantan         Balikpapan      o   Balikpapan    Balikpapan                o   Pontian             Balikpap
                                           o   Banjarmasi                                  ak                   an
                                               n                                       o   Palang               (Bandar
                                           o   Berau                                       karaya               Udara
                                           o   Palangkaray                             o   Banjar               Sepingga
                                               a                                           masin                n)
                                           o   Pontianak                               o   Balikpa             Banjarm
                                           o   Tarakan                                     pan                  asin
                                                                                       o   Taraka               (Bandar
                                                                                           n                    Udara
                                                                                                                Sjamsudi
                                                                                                                n Noor)

         Sumatera          Padang         o    Banda Aceh                Banda Aceh                           Batam
                           Medan          o    Bengkulu                  Palembang    o   Medan                (Bandar
                           Pekanbaru      o    Lampung                   Pekanbaru    o   Banda                Udara
                           Palembang      o    Jambi                     Medan            Aceh                 Hang
                           Banda Aceh     o    Medan                     Padang       o   Padang               Nadim)
                                          o    Padang                                  o   Pekanb              Medan
                                          o    Palembang                                   aru                  (Bandar
                                          o    Pangkal                                 o   Batam                Udara
                                               Pinang                                  o   Jambi                Polonia)
                                          o    Pekanbaru                                   DJB
                                          o    Tanjung                                 o   Palemb
                                               Pandan                                      ang
                                          o    Tanjungpina                             o   Pangka
                                               ng                                          lpinang
                                                                                       o   Tanjun
                                                                                           g
                                                                                           Pandan

              47
Strategic Marketing Plan
                                                                                                    o   Bengku
                                                                                                        lu BKS
                                                                                                    o   Tanjun
                                                                                                        gpinan
                                                                                                        g
          Sulawesi                                        Manado    o   Gorontalo        Makasar                    Makassa
                                                          Makasar   o   Kendari                     o   Makass        r,
                                                                    o   Manado                          ar            (Bandar
                                                                    o   Palu                        o   Kendari       Udara
                                                                    o   Makassar                    o   Palu          Internasi
                                                                    o   Ambon                       o   Manad         onal
                                                                    o   Ternate                         o             Sultan
                                                                                                    o   Ambon         Hasanud
                                                                                                                      din)
                                                                                                                     Manado

           Papua                                                                                        Manok
                                                                                                        wari
                                                                                                        MKW
                                                                                                        (Banda
                                                                                                        ra
                                                                                                        Rendan
                                                                                                        i)
                                                                                                        Jayapur
                                                                                                        a DJJ
                                                                                                        (Banda
                                                                                                        ra
                                                                                                        Sentani
                                                                                                        )

       Asia Tenggara       Singaporeya                                 Singapura                      Malays    
                                   Vietnam                         o   Singapura                       ia
                                   Philimpes                          Malaysia                       Kuala
                                         o      Cebu                o   Penang                          Lumpur
                                         o      Clark               o   Kuala                          Kuchin
                                                (Manila                 Lumpur                          g
                                                )                      Timor Leste                    Singap
                                         o      Manila              o   Dili                            ura
                                         o      Kalibo
                                                                                                       Singap
                                   Malaysia                                                            ura
                                         o      Kinabal                                                Thailan
                                                u                                                       d
                                         o      Kuala
                                                Lumpur
                                                                                                       Bangko
                                                                                                        k
                                         o      Kuchin
                                                                                                       Phuket

              48
Strategic Marketing Plan
                                                 g             Iran
                                             o   Penang
                                                               Tehran
                                                               Isfahan
                                                               Timor
                                                                Leste
                                                               Dili DIL

         Asia Timur                 Republik Rakyat           Republ     
                                     Cina                       ik
                                          o Guangz              Rakyat
                                               hou              Cina
                                          o Haikou             Guangz
                                          o Shenzh              hou
                                               en               CAN
                                    Hongkong
                                    Macau
                                    Srilangka
                                    India
                                             o   Bangal
                                                 ore
                                             o   Chenna
                                                 i
                                             o   Kochi
                                             o   Thiruva
                                                 nantha
                                                 puram
                                             o   Tirucha
                                                 irapalli


        Timur Tengah       Bangladesh                          Arab       
                                    Dhaka                      Saudi
                                                               Jeddah
                                                                JED (
                                                               Riyadh
                                                                RUH

     Australia             Brisbane
                           Caines
                           Goald Coast
                           Hobart
                           Melbourne
                           Perth


                 49
Strategic Marketing Plan
                           Syney




   Exhibit 4 : The Airlines Price


      Booking 24 April     Mandala Air              Lion Air                 Sriwijaya Air                  Air Asia          Merpati Nusantara Airlines         Batavia Air        Citilink
            2012
     (7 – 14 Mei) - pagi
          Jakarta –
          Denpasar
                                         Promo          Rp. 401.000;   Promo       Rp. 500.000;   Promo                n/a    Promo        Rp. 379.000;    Eco           0            Rp.
                                                                                                                                                           Pro                      399.090;
                                                                                                                                                           mo
                                         Ekonomi        Rp. 643.000;   Ekonomi     Rp. 530.000;   Reguler      Rp. 443.900;     Flexi      Rp. 588.000;    Eco      Rp. 716.900;
                                                                                                                                                           Bud
                                                                                                                                                           get
                                         Business              n/a     Business         n/a                                   Ekonomi      Rp. 698.000;    Eco      Rp. 886.900;
                                                                                                                                                           Me
                                                                                                                                                           diu
                                                                                                                                                            m
                                                                                                                              Business           -         Eco     Rp. 1.266.900;
                                                                                                                                                           Pre
                                                                                                                                                           miu
                                                                                                                                                            m
        Denpasar -
         Jakarta
                                         Promo          Rp. 544.000;   Promo       Rp. 460.000;   Promo                n/a    Promo            n/a         Eco           0            Rp.
                                                                                                                                                           Pro                      399.090;
                                                                                                                                                           mo
                                         Ekonomi        Rp. 643.000;   Ekonomi     Rp. 530.000;   Reguler      Rp. 443.900;     Flexi          n/a         Eco      Rp. 556.900;
                                                                                                                                                           Bud
                                                                                                                                                           get
                                         Business              n/a     Business         n/a                                   Ekonomi      Rp. 918.000;    Eco      Rp. 886.900;
                                                                                                                                                           Me
                                                                                                                                                           diu
                                                                                                                                                            m
                                                                                                                              Business           -         Eco     Rp. 1.266.900;
                                                                                                                                                           Pre
                                                                                                                                                           miu
                                                                                                                                                            m


                50
Strategic marketing plan mandala air
Strategic marketing plan mandala air
Strategic marketing plan mandala air
Strategic marketing plan mandala air
Strategic marketing plan mandala air

More Related Content

What's hot

Introduction to Aviation
Introduction to Aviation Introduction to Aviation
Introduction to Aviation Suhail Ahmed
 
Branding strategy of emirates airlines
Branding strategy of emirates airlinesBranding strategy of emirates airlines
Branding strategy of emirates airlinesSyed Bayzid Hasan
 
Strategic Performance Objective of Qatar Airways
Strategic Performance Objective of Qatar AirwaysStrategic Performance Objective of Qatar Airways
Strategic Performance Objective of Qatar AirwaysAssignment Work Help
 
Introduction to Airline Industry
Introduction to Airline IndustryIntroduction to Airline Industry
Introduction to Airline Industryvivianmeril
 
Aviation Finance '' Fasten Your Seatbelt ''
Aviation Finance '' Fasten Your Seatbelt ''Aviation Finance '' Fasten Your Seatbelt ''
Aviation Finance '' Fasten Your Seatbelt ''Seda Eskiler
 
Marketing project_Air India
Marketing project_Air IndiaMarketing project_Air India
Marketing project_Air IndiaDevendra Jaiswar
 
Srilankan Airlines Presentation
Srilankan Airlines PresentationSrilankan Airlines Presentation
Srilankan Airlines PresentationSLIIT
 
Airline industry ppt
Airline industry pptAirline industry ppt
Airline industry pptamayers3
 
Southwest Airlines: A Case Study
Southwest Airlines: A Case StudySouthwest Airlines: A Case Study
Southwest Airlines: A Case StudyAtulya Manuraj
 
Southwest Brand Audit Ppt 12/14/11
Southwest Brand Audit Ppt 12/14/11Southwest Brand Audit Ppt 12/14/11
Southwest Brand Audit Ppt 12/14/11kpowell410
 
Raju aviation project
Raju aviation projectRaju aviation project
Raju aviation projectajayajayraju4
 
Air Arabia Case Study- Presentation- Marketing Management- MBA
Air Arabia Case Study- Presentation- Marketing Management- MBAAir Arabia Case Study- Presentation- Marketing Management- MBA
Air Arabia Case Study- Presentation- Marketing Management- MBAVineethJose5
 
Turnaround Of Srilankan Airlines
Turnaround  Of Srilankan AirlinesTurnaround  Of Srilankan Airlines
Turnaround Of Srilankan AirlinesHolostik India Ltd.
 
Jet Blue Airways - Strategic Management Case Study
Jet Blue Airways - Strategic Management Case StudyJet Blue Airways - Strategic Management Case Study
Jet Blue Airways - Strategic Management Case Studysalmanchd
 
Air blue presentation
Air blue presentationAir blue presentation
Air blue presentationAzaan Karim
 
Revenue passenger mile & Yield
Revenue passenger mile & YieldRevenue passenger mile & Yield
Revenue passenger mile & YieldPrateek Garodia
 
Southwest airlines ppt
Southwest airlines pptSouthwest airlines ppt
Southwest airlines pptspreet1304
 

What's hot (20)

Sri LanKan AIRLINE
Sri LanKan AIRLINESri LanKan AIRLINE
Sri LanKan AIRLINE
 
Introduction to Aviation
Introduction to Aviation Introduction to Aviation
Introduction to Aviation
 
Branding strategy of emirates airlines
Branding strategy of emirates airlinesBranding strategy of emirates airlines
Branding strategy of emirates airlines
 
Strategic Performance Objective of Qatar Airways
Strategic Performance Objective of Qatar AirwaysStrategic Performance Objective of Qatar Airways
Strategic Performance Objective of Qatar Airways
 
Introduction to Airline Industry
Introduction to Airline IndustryIntroduction to Airline Industry
Introduction to Airline Industry
 
Aviation Finance '' Fasten Your Seatbelt ''
Aviation Finance '' Fasten Your Seatbelt ''Aviation Finance '' Fasten Your Seatbelt ''
Aviation Finance '' Fasten Your Seatbelt ''
 
Marketing project_Air India
Marketing project_Air IndiaMarketing project_Air India
Marketing project_Air India
 
Srilankan Airlines Presentation
Srilankan Airlines PresentationSrilankan Airlines Presentation
Srilankan Airlines Presentation
 
Airline industry ppt
Airline industry pptAirline industry ppt
Airline industry ppt
 
Southwest Airlines: A Case Study
Southwest Airlines: A Case StudySouthwest Airlines: A Case Study
Southwest Airlines: A Case Study
 
Southwest Brand Audit Ppt 12/14/11
Southwest Brand Audit Ppt 12/14/11Southwest Brand Audit Ppt 12/14/11
Southwest Brand Audit Ppt 12/14/11
 
Raju aviation project
Raju aviation projectRaju aviation project
Raju aviation project
 
Singapore airline
Singapore airlineSingapore airline
Singapore airline
 
Air Arabia Case Study- Presentation- Marketing Management- MBA
Air Arabia Case Study- Presentation- Marketing Management- MBAAir Arabia Case Study- Presentation- Marketing Management- MBA
Air Arabia Case Study- Presentation- Marketing Management- MBA
 
Turnaround Of Srilankan Airlines
Turnaround  Of Srilankan AirlinesTurnaround  Of Srilankan Airlines
Turnaround Of Srilankan Airlines
 
Jet Blue Airways - Strategic Management Case Study
Jet Blue Airways - Strategic Management Case StudyJet Blue Airways - Strategic Management Case Study
Jet Blue Airways - Strategic Management Case Study
 
Air blue presentation
Air blue presentationAir blue presentation
Air blue presentation
 
Cabin Safety
Cabin SafetyCabin Safety
Cabin Safety
 
Revenue passenger mile & Yield
Revenue passenger mile & YieldRevenue passenger mile & Yield
Revenue passenger mile & Yield
 
Southwest airlines ppt
Southwest airlines pptSouthwest airlines ppt
Southwest airlines ppt
 

Viewers also liked

Egypt Air Strategic Marketing Plan
Egypt Air Strategic Marketing PlanEgypt Air Strategic Marketing Plan
Egypt Air Strategic Marketing PlanWesam Abd El Hameed
 
Michael Kors Strategic Marketing Plan
Michael Kors Strategic Marketing PlanMichael Kors Strategic Marketing Plan
Michael Kors Strategic Marketing PlanJennifer Plopan
 
Strategic Marketing Plan
Strategic Marketing PlanStrategic Marketing Plan
Strategic Marketing PlanGhadir ElGhafri
 
Earth Hour: the challenges of running a global event
Earth Hour: the challenges of running a global eventEarth Hour: the challenges of running a global event
Earth Hour: the challenges of running a global eventCharityComms
 
ANALISIS SWOT kompas.com
ANALISIS SWOT kompas.comANALISIS SWOT kompas.com
ANALISIS SWOT kompas.comzikyvrayudha
 
Egyptair Service Marketing Mix (7 Ps)
Egyptair Service Marketing Mix (7 Ps)Egyptair Service Marketing Mix (7 Ps)
Egyptair Service Marketing Mix (7 Ps)Ahmed Bahnas, MBA
 
marketing mix to airlines
marketing mix to airlinesmarketing mix to airlines
marketing mix to airlinestappoo
 
Marketing In A Down Market
Marketing In A Down MarketMarketing In A Down Market
Marketing In A Down MarketJonathan_Fisher
 
Rowling Energy - Strategic Change PDF
Rowling Energy - Strategic Change PDFRowling Energy - Strategic Change PDF
Rowling Energy - Strategic Change PDFAmy Tompkins
 
Plan estrategico institucional fie 2012 2016 1
Plan estrategico institucional fie 2012 2016 1Plan estrategico institucional fie 2012 2016 1
Plan estrategico institucional fie 2012 2016 1juan rios vilca
 
University of Sydney, Master Of Management Case Study - Danielle Warby
University of Sydney, Master Of Management Case Study - Danielle WarbyUniversity of Sydney, Master Of Management Case Study - Danielle Warby
University of Sydney, Master Of Management Case Study - Danielle WarbyDanielle Warby
 
BergHOFF Catalogue
BergHOFF CatalogueBergHOFF Catalogue
BergHOFF Cataloguejojo leny
 
Imperial Financial Brand Strategy Case Study
Imperial Financial Brand Strategy Case StudyImperial Financial Brand Strategy Case Study
Imperial Financial Brand Strategy Case StudyDavid Green
 
Boost business in ict field
Boost business in ict fieldBoost business in ict field
Boost business in ict fieldJean paul Kadjo
 
Solution of 2016 esonance business case study
Solution of 2016 esonance business case studySolution of 2016 esonance business case study
Solution of 2016 esonance business case studyIshtiaque Zaman
 

Viewers also liked (20)

EgyptAir
EgyptAirEgyptAir
EgyptAir
 
Egypt Air Strategic Marketing Plan
Egypt Air Strategic Marketing PlanEgypt Air Strategic Marketing Plan
Egypt Air Strategic Marketing Plan
 
Michael Kors Strategic Marketing Plan
Michael Kors Strategic Marketing PlanMichael Kors Strategic Marketing Plan
Michael Kors Strategic Marketing Plan
 
Resume
ResumeResume
Resume
 
JERAZ CABIN RESUME
JERAZ CABIN RESUMEJERAZ CABIN RESUME
JERAZ CABIN RESUME
 
Strategic Marketing Plan
Strategic Marketing PlanStrategic Marketing Plan
Strategic Marketing Plan
 
Earth Hour: the challenges of running a global event
Earth Hour: the challenges of running a global eventEarth Hour: the challenges of running a global event
Earth Hour: the challenges of running a global event
 
Egypt ASBU B0
Egypt ASBU B0Egypt ASBU B0
Egypt ASBU B0
 
ANALISIS SWOT kompas.com
ANALISIS SWOT kompas.comANALISIS SWOT kompas.com
ANALISIS SWOT kompas.com
 
Egyptair Service Marketing Mix (7 Ps)
Egyptair Service Marketing Mix (7 Ps)Egyptair Service Marketing Mix (7 Ps)
Egyptair Service Marketing Mix (7 Ps)
 
marketing mix to airlines
marketing mix to airlinesmarketing mix to airlines
marketing mix to airlines
 
Marketing In A Down Market
Marketing In A Down MarketMarketing In A Down Market
Marketing In A Down Market
 
Rowling Energy - Strategic Change PDF
Rowling Energy - Strategic Change PDFRowling Energy - Strategic Change PDF
Rowling Energy - Strategic Change PDF
 
Plan estrategico institucional fie 2012 2016 1
Plan estrategico institucional fie 2012 2016 1Plan estrategico institucional fie 2012 2016 1
Plan estrategico institucional fie 2012 2016 1
 
University of Sydney, Master Of Management Case Study - Danielle Warby
University of Sydney, Master Of Management Case Study - Danielle WarbyUniversity of Sydney, Master Of Management Case Study - Danielle Warby
University of Sydney, Master Of Management Case Study - Danielle Warby
 
BergHOFF Catalogue
BergHOFF CatalogueBergHOFF Catalogue
BergHOFF Catalogue
 
IBM Blue Water Shipping Case study
IBM Blue Water Shipping Case studyIBM Blue Water Shipping Case study
IBM Blue Water Shipping Case study
 
Imperial Financial Brand Strategy Case Study
Imperial Financial Brand Strategy Case StudyImperial Financial Brand Strategy Case Study
Imperial Financial Brand Strategy Case Study
 
Boost business in ict field
Boost business in ict fieldBoost business in ict field
Boost business in ict field
 
Solution of 2016 esonance business case study
Solution of 2016 esonance business case studySolution of 2016 esonance business case study
Solution of 2016 esonance business case study
 

Similar to Strategic marketing plan mandala air

Strategic marketing report on guna airlines
Strategic  marketing report on guna airlinesStrategic  marketing report on guna airlines
Strategic marketing report on guna airlinesSubarn Pant
 
Comparative study of Airline industry of India
Comparative study of Airline industry of IndiaComparative study of Airline industry of India
Comparative study of Airline industry of IndiaVinit Sadani
 
Marketing Strategy/ Strategi Pemasaran - Mandala-Tiger Airline
Marketing Strategy/ Strategi Pemasaran - Mandala-Tiger AirlineMarketing Strategy/ Strategi Pemasaran - Mandala-Tiger Airline
Marketing Strategy/ Strategi Pemasaran - Mandala-Tiger AirlineHaris Suhendra
 
A Study On Customer Satisfaction In Airline Industry At LPU
A Study On Customer Satisfaction In Airline Industry At LPUA Study On Customer Satisfaction In Airline Industry At LPU
A Study On Customer Satisfaction In Airline Industry At LPUDeja Lewis
 
Business Cycle - Garuda Indonesia
Business Cycle - Garuda IndonesiaBusiness Cycle - Garuda Indonesia
Business Cycle - Garuda Indonesiagezelinocsta
 
Final makmytrip case study
Final makmytrip case studyFinal makmytrip case study
Final makmytrip case studyShiv Khatri
 
STRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITY
STRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITYSTRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITY
STRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITYNarasimha kotha
 
Airlines industry
Airlines industry Airlines industry
Airlines industry Ande Rahul
 
Aviation Articles english version
Aviation Articles   english version Aviation Articles   english version
Aviation Articles english version Mohammed Awad
 
Aviation Industry
Aviation IndustryAviation Industry
Aviation Industryxmuzik
 
7 Best Airline in the World Version APEX World Class Award 2022.docx
7 Best Airline in the World Version APEX World Class Award 2022.docx7 Best Airline in the World Version APEX World Class Award 2022.docx
7 Best Airline in the World Version APEX World Class Award 2022.docxbaruna adi
 
Reason for air in indian crisis
Reason for air  in indian crisisReason for air  in indian crisis
Reason for air in indian crisisp4u1991
 
Design and creative ideas for no frills airports in tier-ii & tier-iii cities
Design and creative ideas for no frills airports in tier-ii & tier-iii citiesDesign and creative ideas for no frills airports in tier-ii & tier-iii cities
Design and creative ideas for no frills airports in tier-ii & tier-iii citiesRajiv Babu Chintala
 
Airtel - Marketing Insights
Airtel - Marketing InsightsAirtel - Marketing Insights
Airtel - Marketing InsightsKaran Jaidka
 
Taj brand and customer layality
Taj brand and customer layality Taj brand and customer layality
Taj brand and customer layality Mohit Kumar Rai
 
Indian Aviation Industry
Indian Aviation Industry Indian Aviation Industry
Indian Aviation Industry Reema Jagtap
 

Similar to Strategic marketing plan mandala air (20)

Strategic marketing report on guna airlines
Strategic  marketing report on guna airlinesStrategic  marketing report on guna airlines
Strategic marketing report on guna airlines
 
Comparative study of Airline industry of India
Comparative study of Airline industry of IndiaComparative study of Airline industry of India
Comparative study of Airline industry of India
 
Marketing Strategy/ Strategi Pemasaran - Mandala-Tiger Airline
Marketing Strategy/ Strategi Pemasaran - Mandala-Tiger AirlineMarketing Strategy/ Strategi Pemasaran - Mandala-Tiger Airline
Marketing Strategy/ Strategi Pemasaran - Mandala-Tiger Airline
 
A Study On Customer Satisfaction In Airline Industry At LPU
A Study On Customer Satisfaction In Airline Industry At LPUA Study On Customer Satisfaction In Airline Industry At LPU
A Study On Customer Satisfaction In Airline Industry At LPU
 
Business Cycle - Garuda Indonesia
Business Cycle - Garuda IndonesiaBusiness Cycle - Garuda Indonesia
Business Cycle - Garuda Indonesia
 
Final makmytrip case study
Final makmytrip case studyFinal makmytrip case study
Final makmytrip case study
 
STRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITY
STRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITYSTRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITY
STRATEGIC ANALYSIS OF INDIAN LOW COST AIRLINES AND THEIR FUTURE SUSTAINABILITY
 
Airlines industry
Airlines industry Airlines industry
Airlines industry
 
Aviation Articles english version
Aviation Articles   english version Aviation Articles   english version
Aviation Articles english version
 
Aviation Industry
Aviation IndustryAviation Industry
Aviation Industry
 
7 Best Airline in the World Version APEX World Class Award 2022.docx
7 Best Airline in the World Version APEX World Class Award 2022.docx7 Best Airline in the World Version APEX World Class Award 2022.docx
7 Best Airline in the World Version APEX World Class Award 2022.docx
 
Aviation industry
Aviation industryAviation industry
Aviation industry
 
Reason for air in indian crisis
Reason for air  in indian crisisReason for air  in indian crisis
Reason for air in indian crisis
 
Aviation in india
Aviation in indiaAviation in india
Aviation in india
 
MGO403 Individual Paper.docx
MGO403 Individual Paper.docxMGO403 Individual Paper.docx
MGO403 Individual Paper.docx
 
Design and creative ideas for no frills airports in tier-ii & tier-iii cities
Design and creative ideas for no frills airports in tier-ii & tier-iii citiesDesign and creative ideas for no frills airports in tier-ii & tier-iii cities
Design and creative ideas for no frills airports in tier-ii & tier-iii cities
 
Airtel - Marketing Insights
Airtel - Marketing InsightsAirtel - Marketing Insights
Airtel - Marketing Insights
 
Taj brand and customer layality
Taj brand and customer layality Taj brand and customer layality
Taj brand and customer layality
 
Indian Aviation Industry
Indian Aviation Industry Indian Aviation Industry
Indian Aviation Industry
 
Airline industry
Airline industryAirline industry
Airline industry
 

More from Mita Hadi

Travel To Korea
Travel To KoreaTravel To Korea
Travel To KoreaMita Hadi
 
Tiga Pilar Corporation Case Analysis
Tiga Pilar Corporation Case AnalysisTiga Pilar Corporation Case Analysis
Tiga Pilar Corporation Case AnalysisMita Hadi
 
Marketing Strategy for Luvee Litee - Campina
Marketing Strategy for Luvee Litee - CampinaMarketing Strategy for Luvee Litee - Campina
Marketing Strategy for Luvee Litee - CampinaMita Hadi
 
E-MM Learning Business Model
E-MM Learning Business ModelE-MM Learning Business Model
E-MM Learning Business ModelMita Hadi
 
Corporate business strategy of xl axiata
Corporate business strategy of xl axiataCorporate business strategy of xl axiata
Corporate business strategy of xl axiataMita Hadi
 
Xl axiata growth strategy
Xl axiata growth strategyXl axiata growth strategy
Xl axiata growth strategyMita Hadi
 
Pama group continuous transformation
Pama group continuous transformationPama group continuous transformation
Pama group continuous transformationMita Hadi
 
Group assignment pn g organization 2005
Group assignment pn g organization 2005Group assignment pn g organization 2005
Group assignment pn g organization 2005Mita Hadi
 
Strategic evaluation of e bay
Strategic evaluation of e bayStrategic evaluation of e bay
Strategic evaluation of e bayMita Hadi
 
Southwest airlines 2012
Southwest airlines 2012Southwest airlines 2012
Southwest airlines 2012Mita Hadi
 
Knowledge management system in the team
Knowledge management system in the teamKnowledge management system in the team
Knowledge management system in the teamMita Hadi
 
Lifebuoy Case Study
Lifebuoy Case StudyLifebuoy Case Study
Lifebuoy Case StudyMita Hadi
 
Citibank Indonesian Case Study
Citibank Indonesian Case StudyCitibank Indonesian Case Study
Citibank Indonesian Case StudyMita Hadi
 
Business Case Study PT Sekar Ayu
Business Case Study PT Sekar AyuBusiness Case Study PT Sekar Ayu
Business Case Study PT Sekar AyuMita Hadi
 

More from Mita Hadi (14)

Travel To Korea
Travel To KoreaTravel To Korea
Travel To Korea
 
Tiga Pilar Corporation Case Analysis
Tiga Pilar Corporation Case AnalysisTiga Pilar Corporation Case Analysis
Tiga Pilar Corporation Case Analysis
 
Marketing Strategy for Luvee Litee - Campina
Marketing Strategy for Luvee Litee - CampinaMarketing Strategy for Luvee Litee - Campina
Marketing Strategy for Luvee Litee - Campina
 
E-MM Learning Business Model
E-MM Learning Business ModelE-MM Learning Business Model
E-MM Learning Business Model
 
Corporate business strategy of xl axiata
Corporate business strategy of xl axiataCorporate business strategy of xl axiata
Corporate business strategy of xl axiata
 
Xl axiata growth strategy
Xl axiata growth strategyXl axiata growth strategy
Xl axiata growth strategy
 
Pama group continuous transformation
Pama group continuous transformationPama group continuous transformation
Pama group continuous transformation
 
Group assignment pn g organization 2005
Group assignment pn g organization 2005Group assignment pn g organization 2005
Group assignment pn g organization 2005
 
Strategic evaluation of e bay
Strategic evaluation of e bayStrategic evaluation of e bay
Strategic evaluation of e bay
 
Southwest airlines 2012
Southwest airlines 2012Southwest airlines 2012
Southwest airlines 2012
 
Knowledge management system in the team
Knowledge management system in the teamKnowledge management system in the team
Knowledge management system in the team
 
Lifebuoy Case Study
Lifebuoy Case StudyLifebuoy Case Study
Lifebuoy Case Study
 
Citibank Indonesian Case Study
Citibank Indonesian Case StudyCitibank Indonesian Case Study
Citibank Indonesian Case Study
 
Business Case Study PT Sekar Ayu
Business Case Study PT Sekar AyuBusiness Case Study PT Sekar Ayu
Business Case Study PT Sekar Ayu
 

Recently uploaded

8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCRashishs7044
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaoncallgirls2057
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMintel Group
 
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDFGuide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDFChandresh Chudasama
 
Financial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptxFinancial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptxsaniyaimamuddin
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxmbikashkanyari
 
8447779800, Low rate Call girls in Dwarka mor Delhi NCR
8447779800, Low rate Call girls in Dwarka mor Delhi NCR8447779800, Low rate Call girls in Dwarka mor Delhi NCR
8447779800, Low rate Call girls in Dwarka mor Delhi NCRashishs7044
 
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Doge Mining Website
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024Adnet Communications
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Pereraictsugar
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607dollysharma2066
 
Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524najka9823
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdfShaun Heinrichs
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessSeta Wicaksana
 
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...ssuserf63bd7
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environmentelijahj01012
 
PB Project 1: Exploring Your Personal Brand
PB Project 1: Exploring Your Personal BrandPB Project 1: Exploring Your Personal Brand
PB Project 1: Exploring Your Personal BrandSharisaBethune
 

Recently uploaded (20)

8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
 
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDFGuide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDF
 
Financial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptxFinancial-Statement-Analysis-of-Coca-cola-Company.pptx
Financial-Statement-Analysis-of-Coca-cola-Company.pptx
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
 
8447779800, Low rate Call girls in Dwarka mor Delhi NCR
8447779800, Low rate Call girls in Dwarka mor Delhi NCR8447779800, Low rate Call girls in Dwarka mor Delhi NCR
8447779800, Low rate Call girls in Dwarka mor Delhi NCR
 
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Perera
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
 
Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
 
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environment
 
PB Project 1: Exploring Your Personal Brand
PB Project 1: Exploring Your Personal BrandPB Project 1: Exploring Your Personal Brand
PB Project 1: Exploring Your Personal Brand
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 

Strategic marketing plan mandala air

  • 1. Strategic Marketing Plan Strategic Marketing Plan Mandala Air The Second Life Haris Suhendra, Pramita Wardani, Endah Widiastuti, Stephanus Kurniadi, Hendriana, Steven Martono
  • 2. Strategic Marketing Plan Table of Contents Table of Figure Chapter 1 : Overview 1 1.1 Executive Summary 1 1.2 Introduction 2 Chapter 2: Situation Analysis 9 2.1 4C’s Diamond Analysis 9 2.2 Curve Value analysis 14 2.3 SWOT Analysis 15 2.4 Competitor Analysis based on 4P’s 19 2.5 Consumer Insight 20 Chapter 3 : Marketing Segmentation, Target Market, and Positioning 26 3.1 Market Segmentation 26 3.2 Target Market 26 3.3 Positioning 26 Chapter 4 : Marketing Goal and Objectives 27 Chapter 5 : Marketing 4C’s Strategies and Tactics 28 5.1 Consumer 28 5.2 Cost 29 5.3 Convenient 30 5.4 Communication 31 Chapter 6 : Controls – progress measurement and monitoring 37 Reference 38 Appendix
  • 3. Strategic Marketing Plan Table of Figure Figure 1 : Mandala Lockheed L-188 Electra at Perth Airport (early 1990s). Figure 2 : An Airbus A319-100 in the current livery Figure 3 : Mandala Corporate Identity Figure 4 : The 4C’s Diamond of Mandala, Source : MIM Figure 5 : Indonesia Macroeconomic Situation Figure 6 : Indonesia Airlines Market 2011 Market Share, Source: OAG Max Online for w/c 10 January 2011 Figure 7 : Mandala Curve Value Figure 8 :Mandala SWOT Analysis Figure 9 : Customer’s Insights: Customer’s Profile Figure 10 : Customer’s Insights: Customer Transportation Figure 11 : Customer’s Insights:Airline’s Profile Figure 12 : Customer’s Insights: Mandala Brand Awarenes Figure 13 : Customer’s Insights: Netnography #1 Figure 14 : Customer’s Insights: Netnography #2 Figure 15 : Mandala Marketing Segmentation, Target Market and Positioning Figure 16 : Mandala Marketing 4C’s Strategies and Tactics Figure 17 : Consumer : New Product Development Figure 18 : Cost : Bowman’s Strategic Options Figure 19 : Convenient for the New Mandala Figure 20 : Clarification of Mandala Brand Figure 21 : Mandala Brand Strategy Platform Figure 22 : The New Mandala Value Curve Figure 22 : The New Mandala Brand Campaign Figure 23 : The New Mandala 360 degree Communication Figure 24 : The Mandala Controls – progress measurement and monitoring
  • 4. Strategic Marketing Plan Chapter 1 Overview 1.1 Executive Summary Mandala Air was once a glorious airline in Indonesia, in January 2011 they stopped their operation due to bankruptcy. Because of the future prospect in Indonesia airline is quite good, Saratoga Group bought 51% share of the airline, pledged with Tiger Airways 33%. Sandiaga Uno, co-founder and chief executive of private equity firm Saratoga Group and Chin Yau Seng. Mandala restarting operations with its first flight from Jakarta to Medan, capital of North Sumatra. Mandala’s return as a low-cost carrier, Mandala expects to tap the middle-income demographic, which he said had grown by 7 million people annually in recent years, creating a big pool of consumers increasingly seeking air travel. Chin Yau Seng, Tiger’s chief executive was optimistic about the Indonesian market and ready to compete with established budget airlines, including Lion Air, Citilink and Indonesia AirAsia, that are also expanding. The good thing is the market is also growing, so while low- cost carriers will grow their frequencies and networks. The rise in middle-income households combined with the many islands that make up the country meant air travel was the most efficient means of travel. Both Saratoga and Tiger refrained from disclosing the amount of money they have invested in Mandala. Mandala owed Rp 2.4 trillion ($262 million) to 114 of its suppliers, and Rp 27 billion to more than 70,000 ticket holders. Mandala are committed to provide new Airbus A320. Initially Mandala will operate three planes and will operate 10 aircraft by the end of the year. It is also re-employing about 80 people from its former cabin crews, including 22 pilots. The company is aiming to hire as many as 100 pilots by the end of the year. 1|Page
  • 5. Strategic Marketing Plan After the initial Jakarta-Medan route with 12 flights a week, Mandala will fly Medan to Singapore and Jakarta to Kuala Lumpur. The company will continue “analyzing and adjusting” its routes for the most effective and efficient operation. This market is not static, it is fast growing. Mandala will grow as Mandala offer more flights and more frequency. Mandala believes the company is operating in the right market at the right time. 1.2 Introduction About Mandala Airlines Mandala Airlines is a low-cost carrier which the headquartered is in the Mandala Airlines Building in West Jakarta, Jakarta, Indonesia. Mandala operated scheduled services to 3 international and 17 domestic destinations, used a fleet of narrow body Airbuses. Its main operational base is Soekarno-Hatta International Airport in Jakarta. The airline had positioned itself as a provider of safe and reliable service combined with a competitive pricing scheme. In January 2011, the Mandala operation is suspended and its air certificate of operation has been reactivated. The company was reported to have asked the commercial court to delay debt recovery action against the airline. The official application for postponement of debt payments to the Commercial Court has been filed for Rp.800 billion to about 271 creditors. At end of February 2011, the creditors had finally accepted the airline's debt settlement proposal to convert debt to equity. It was approved by 70.58 percent of total creditors from the total debt of Rp.2.4 trillion. After struggle with the funds, on September 24, 2011 the acquisition transaction was finally closed. Mandala would be back in the air 90 days after it, but certainly should get a new Air Operator Certificate first during it. Two Mandala aircraft have been checked by the Transportation Ministry inspectors and Mandala Airlines have to resume service by February 15, 2012 or its AOC license would be revoked. Mandala will have 10 aircraft within one year. 2|Page
  • 6. Strategic Marketing Plan Mandala resume their airline operations on April 5th, 2012, with one domestic route between its home base Jakarta and Medan. This will be followed by its first international destination when they launches the Medan-Singapore route on April 20th, 2012, adding a second Indonesian destination to Tiger's Singapore network after Jakarta. In May, Mandala also fly twice daily to Malaysia's capital Kuala Lumpur from Jakarta. The latest Mandala passengers who are still holding on to Mandala tickets after the company ceased operations in 2011, were offered a complimentary travel voucher redeemable through the company's new Tiger-based website. History about Mandala Figure 1 : Mandala Lockheed L-188 Electra at Perth Airport (early 1990s). PT Mandala Airlines was founded on April 17th , 1969. The founders were Col. Sofjar, Maj. Gen. Raden Soerjo, Adil Aljol, Maj. (Air Force) Soegandi Partosoegondo, Kasbi Indradjanoe and Darwin Ramli. The airline was owned by PT Dharma Kencana Sakti, which was the commercial arm of Yayasan Dharma Putra Kostrad, a foundation linked to Kostrad, the strategic reserve command of the Indonesian army. The airline was named after Operation Mandala, the military operations to incorporate West Papua into Indonesia. The name also refers to Mandala, a Sanskrit term for a diagram symbolizing the universe, and it also being used as the logo of the corporation. In its early years Mandala Airlines operated flights between Jakarta and destinations in eastern Indonesia, such as Ambon, Gorontalo, Kendari, Makassar and Manado. In 1972, 3|Page
  • 7. Strategic Marketing Plan Mandala took over Seulawah Air Service (another military-owned airline), which flew to cities in western Indonesia, such as Banda Aceh, Banjarmasin, Medan, Padang, Palembang, Pekanbaru and Pontianak, giving the airline a national coverage. Under military management, Mandala Airlines kept a relatively quiet existence as a second-tier airline. In 1992, it retired the last of its aged turboprop fleet and replaced them with leased second hand jet aircraft. In 2001, it suffered a financial scandal, in which no less than IDR 135.5 billion (about USD 13.5 million) was stolen from the company funds by a senior Kostrad officer. Despite being awarded as Indonesia's "Most Potential Brand in Airlines Service" in 2002, Mandala found it hard to compete with other recently-emerged Indonesian airlines. In 2005, Mandala experienced a high profile accident in Medan. At about the same time, political developments in Indonesia forced the military to divest itself of its businesses, resulting in Mandala Airlines being offered for sale. After the Indonesian government refused to take over Mandala Airlines, Cardig International acquired the airline for IDR 300 billion (USD 34 million) in April 2006. Indigo Partners acquired 49% of Cardig's shares in October 2006. Figure 2 : An Airbus A319-100 in the current livery 4|Page
  • 8. Strategic Marketing Plan Within one year of its acquisition, Mandala Airlines transformed its image into a modern airline satisfying international standards of safety. It adopted the low-cost carrier model, in order to compete with other low-cost airlines in Indonesia. Mandala Airlines created a special niche among Indonesia's low-cost carriers by creating an image as a safe airline, taking advantage of the relatively young age of its fleet. Mandala has completed the IOSA (IATA Operational Safety Audit) of the International Air Transport Association (IATA), and other manufacturer audits. It contracted maintenance of its aircraft to Singapore Airlines Engineering Company (SIAEC). Its safety improvements were recognized by the European Union as Mandala was among four Indonesian airlines (the others were Garuda Indonesia, Airfast Indonesia and Premiair) officially struck from the EU airline ban list on July 14, 2009. Mandala is listed in Category 1 by the Indonesian Civil Aviation Authority for airline safety quality. In January 2009, Mandala Airlines completed the phasing out of its older Boeing aircraft, replacing them with newer Airbuses. On April 20, 2009, Mandala moved its Jakarta operations to the new Terminal 3 of the Soekarno-Hatta International Airport. In April 2010, Mandala Airlines announced international services to Hong Kong, Macau and Singapore, these services started on June 25, 2010. Shortly after services between Jakarta and Macau started on 21 July 2010, the airline announced that all flights between 22 to 29 August 2010 had been cancelled. Concerns were raised by some passengers that the company did not provide adequate information about the abrupt cancellations. On January 13, 2011, Mandala Airlines temporarily stopped flying all of their fleet due to debt problems. In May 2011, Singapore-based Tiger Airways thru Road Aviation Pte. Ltd. and Saratoga Investama, an Indonesian strategic investment company owned by Sandiaga Uno, announced their plans in a filing to the Singapore Stock Exchange on Thursday. Tiger 5|Page
  • 9. Strategic Marketing Plan Airways will acquire a 33 percent stake, while the Saratoga Group will buy 51 percent of Mandala. Mandala Airlines will focus on Low Cost Carrier (LCC) market because one of the shareholders, Tiger Airways also runs an LCC operation. Corporate identity Figure 3 : Mandala Corporate Identity The Mandala Airlines logo at figure 3, was used from 1969 to 2008. The airline's logo represent a golden eight-pointed mandala reflecting the eight characters of humanity and the eight elements in Javanese tradition, with a five-petaled lotus in its center reflecting Indonesia's five-principled state ideology, Pancasila. A new logo was unveiled on September 1, 2008, emphasizing the new image of the corporation. The new logo, designed by Veronica Halim & Eddy Purwanto from Nuage Branding, keeps the mandala and lotus theme of the original, but has a more streamlined design. The current livery of Mandala Airlines is a "Eurowhite" scheme, consisting of a white fuselage with a blue 'mandala' title. The company logo is applied on the tail and the outboard sides of engine nacelles. Mandala's previous livery was also a "eurowhite" scheme with a different typeface for the 'Mandala' title, a blue tail and the original logo. The airline's earliest scheme was a bare-metal lower and white upper fuselage with a blue cheat line across the cabin windows and a red 'MANDALA' title. 6|Page
  • 10. Strategic Marketing Plan Other recent liveries used by Mandala Airlines include a gold and blue wavy scheme with a large billboard 'Mandala' title introduced in early 2008, a mainly-white scheme with gold and blue hockey stick stripes on the fuselage and a blue tail, and an all-white scheme. Following its restructuring, the new hybrid Mandala livery reflects its status as Tiger Airways' partner airline in Indonesia by keeping the blue 'mandala' title on the fuselage of the Airbus A320 but having its wingtips and logo on the tail replaced with Tiger's stripes and colors. Destinations Mandala resumed operations on April 2012 with a daily flight between Jakarta and Medan. It was also announced in the same press release that the airline’s first international destination would be Kuala Lumpur in Malaysia. However, a few days later, Mandala quietly opened a new Medan-Singapore route for booking on its website, with flights commencing 20 April 2012 and operated by Mandala. Other routes that have been approved include Jakarta-Singapore and Singapore-Denpasar (Bali)-Jakarta. In-flight service Mandala Airlines is a single class service airline. It had a buy on board service offering food and beverages for purchase by passengers, but no in-flight entertainment. Seats were reserved and allocated during check-in. Free in-flight magazines and newspapers were provided during flight. Mandala Airlines had a baggage allowance of 20 kg (44 lb) per passenger, with an extra 5 kg (11 lb) for priority passengers. Priority passengers also benefit from better seat locations (at the front of the aircraft), free lounge access and free food and beverages (both in lounges and during flight). 7|Page
  • 11. Strategic Marketing Plan Ticketing In line with current airline practice, Mandala Airlines utilized an electronic ticketing and an e-payment system. The airline had a 24-hour call center and a website for customers to book and pay for tickets electronically. Tickets for TransNusa destinations can be booked from the website, but flights involving the different airlines need separate bookings for each leg. The motivation behind the marketing strategy The good thing is the market is also growing, so while low-cost carriers will grow their frequencies and networks. The rise in middle-income households combined with the many islands that make up the country meant air travel was the most efficient means of travel. Mandala expects to tap the middle-income demographic, which had grown by 7 million people annually in recent years, creating a big pool of consumers increasingly seeking air travel. Mandala is optimistic about the Indonesian market and ready to compete with established budget airlines. 8|Page
  • 12. Strategic Marketing Plan Chapter 2 Situation Analysis For the situation analysis, we do an analysis about the Macroeconomic Environment, Demand and demand trends for the products/services in airline industry, The Social and Demographic trends and also about the Industry environment it selves. The tools that we use are the 4C’s Diamond Analysis, The Curve Value Analysis, SWOT Analysis and The Customer Insight Analysis. 2.1 4C’s Diamond Analysis The 4C’s Diamond consists of Changes, Customers, Company and Competition. Figure 4 : The 4C’s Diamond of Mandala, Source : MIM 9|Page
  • 13. Strategic Marketing Plan 1. Change a. Macroeconomic environment Figure 5 : Indonesia Macroeconomic Situation From the global market perspective, Indonesia macro economy has a big achievement, although the world economic and politic is in crisis. Therefore Indonesia is one of the potential investment targets for the investors. The Fourth Cluster Driving Growth are food and beverages industry, Textiles, textile products, and footwear industry, electronics and electronic components industry, and transportation equipment’s and automotive components industry. b. Technology Trends From the technology trends, we can see that Information Technology (IT) is expanding very fast, especially in communication area. The Social Media are also expanding and have some new revolutions, the internet is becoming very popular and it has a huge networking in Indonesia area. Using the internet, now customer could search any information they want to know, by searching at their official 10 | P a g e
  • 14. Strategic Marketing Plan website or blogs (social media). And accessing the internet, now there are many media customer can use, such as laptop, smartphones, Ipad etc. c. Social Culture In the social culture area, the social media is now a phenomenon. Every people in every level can access the internet easily. Because of the transforming of IT from static to mobile, customer’s culture are now is mobile. They can access the internet anytime and anywhere they want. d. Market The growth of the aviation industry doubled from Indonesia's economic growth average 20% -21% per year. In the Low cost carrier (LCC) service area, there are more attractive to suck 80% market share. The middle-class people of Indonesia increased by 7 million people each year. And there are 60 million passengers by 2015 and 75 million by 2020. This opportunity is a good market for Mandala with the concept of low cost carrier. So, the domestic aviation, market still needs a lot of planes, at least up to 1,000 units considering Indonesia is an archipelago, while from the side of the plane is still defeated by India, China, even Singapore. Indonesia has a lot of business sectors that depend on the airline business, which is the tourism sector. Foreign airlines also took the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia. Based on the Airline market share, Lion air has a big market share comparing to the competitor. Lion Air has 38.9% frequency share and 45.55% capacity share and 92 domestic routes. Meanwhile, Mandala only have 3% frequency share and 3% 11 | P a g e
  • 15. Strategic Marketing Plan capacity share and 17 domestic routes. Surely this market share will grow in line with the growth of the airline industry itself. Airline Frequency share Capacity share Domestic routes Lion Air 38.9% 45.5% 92 Garuda 20.9% 21.6% 38 Indonesia Batavia 12.7% 10.7% 55 Sriwijaya Air 9.8% 8.8% 39 Merpati 7.4% 5.9% 41 Nusantara Mandala Airlines 3.0% 3.0% 17 Indonesia AirAsia 1.6% 1.8% 6 Figure 6 : Indonesia Airlines Market 2011 Market Share, Source: OAG Max Online for w/c 10 January 2011 e. Politic & Legal Based on the political and legal regulation of the Aviation Law and government policy, airlines or foreign investor will still be able to build the airline in Indonesia, as long as the majority of shares held by local investors. The rule on Law No.1, 2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors. Besides the political and legal regulation of the Aviation Law and government policy, Mandala also must aware about the aviation fuel price, it increase every year. 2. Competitor The Asean Open Sky will be enacted in 2015, the national airline to compete with the airlines. Six airlines So Tight Competitors in Asean Open Sky. Three-in-class airline 12 | P a g e
  • 16. Strategic Marketing Plan services is a full service Singapore Airlines, Thai Airways, Malaysia Airlines, while three other carriers in the class cost (low cost carrier / LCC) is AirAsia, Tiger Airways and Jetstar Airways. The other issues from competitor Mandala must be aware are: • Long haul flight is an trial to get undeveloped market share • Differentiation from traditional LCC model by adding customer services or operation as full service airline with low fare • Ongoing industry consolidation has opened up prospects for new routes and airport deals • Full service airlines start cut costs to compete • Entrance of other LCCs • Increase in operation cost in producing value-added services • System disruption due to heavily reliance on online sales • The increase in customer’s requirements of higher-quality products/services 3. Customer Customer more educated and has much information of taking a decision. Customers now have many choices and they are more demanding and difficult to be satisfied. Customer loyalty is decreasing because a lot of promotion that offer more benefits. Customers who are price- oriented segment is very big, but have low buying power. 4. Company • Company is value-decider • The others 3C’s must be learned to see the effect to campany. • The must existing competence analysis for the company. • Base on the existing competence, take the stretch possibilities. • Company has several choices that are go/invest, no no/hold, harvest and divest. 13 | P a g e
  • 17. Strategic Marketing Plan • To decide the choice, depend on company risk attitude 2.2 Curve Value Analysis The concept of a Value Curve is to use a diagram to compare products on a range of factors by rating them on a scale from low to high. These can be features, benefits or ways in which a product is distributed or consumed. The combination of these various factors defines the product or service. Multiple Value Curves should be drawn, to allow a visual comparison with competitive products and to unearth possible spaces or gaps in the market. By investigating the feasibility of these gaps (Will customers want this? Can you afford to offer this?) It may be possible to identify changes to the product that significantly alter the value proposition. From figure 7, Mandala in orange comparing it to the competitors. Figure 7 : Mandala Curve Value 14 | P a g e
  • 18. Strategic Marketing Plan In The Curve value is seen some element as a key success factor for performance of the airline, the assessments seen from the price offered, the availability of food, lounge facilities, seat selection service, Hub Connectivity, speed and timeliness, coming from different cities, amenities and services trunk. Key success factors over the course of each different airline companies. This difference is the goal to provide the best service and win competition. 2.3 SWOT Analysis The SWOT Analysis is the fundamental concept, determining the strengths, weaknesses, threats, and opportunities for Mandala. SWOT Strength Weakness Strength- Weaknesses- Opportunities Opportunities opportunities (SO) (WO) Strength- Weaknesses- Treats Treats (ST) Treats (WT) Figure 8 : Mandala SWOT Analysis The explanation about Mandala SWOT Analysis at Figure 8 can bee seen in Exhibit 1 : Mandala SWOT Matrix Analysis and for the detailed IPAS (Internal Factors Analysis Summary) and EPAS (External Factors Analysis Summary) of Mandala could be seen in Exhibit 2 : Mandala IPAS and EPAS. 15 | P a g e
  • 19. Strategic Marketing Plan Mandala Strength are : 1. Shares owned Mandala Saratoga Capital (51%), Tiger Airways (33%), concurrent credit of 15%, and the old shareholders Cardig and Indigo (1%). 2. Tiger Sandiaga and prepare capital of U.S. $ 250 million. 3. Tiger Airways business model adopted. 4. Low-cost airline 5. Mandala operated scheduled services to three international and 17 domestic destinations, used a narrow-body fleet of Airbuses. 6. The name Mandala is not changed 7. Safe and reliable flights 8. Tiger Airways, together with its associated airlines, operates a fleet of 32 Airbus A320 aircraft Mandala Weaknesses are : 1. Service resource is limited by lower costs Limited human resources Situation Could not handle irregular. 2. Government interference and regulation on airport deals and passenger compensation. 3. Non-central location of secondary airports. 4. Brand is vital for market position and developing it is always a challenge 5. Heavy reliance on outsourcing 6. New entrants to Provide the price-sensitive services 7. Mandala is still not a good name in the public eye since 2011 had been frozen. 8. The plane is still not much 9. Mandala routes are limited. 10. Other companies using the LCC business model too. 11. New Mandala will penetrate the Jakarta-Medan route. As for the international flights will start from Jakarta to Kuala Lumpur, Malaysia. 16 | P a g e
  • 20. Strategic Marketing Plan Mandala Opportunities are : 1. The growth of the aviation industry average of 20% -21% per year. 2. Long haul flight to get your trial is an undeveloped market share 3. Differentiation from traditional LCC models by adding customer services or as full-service operation with a low fare airline 4. Ongoing industry consolidation has opened up prospects for new routes and airport deals 5. High fuel prices will squeeze out unprofitable competitors 6. Service low cost carrier (LCC) more attractive to suck 80% market share. 7. 16 domestic routes and four international routes 8. Target the middle class 7 million people each year. 9. Increased tourism sector 10. 60 million passengers by 2015 and 75 million by 2020. 11. Mandala will operate 10 Airbus A320 aircraft. 12. Aviation Law. Airlines or foreign investment will still be able to build the airline in Indonesia, as long as the majority of shares held by local investors. 13. Expand the technology of the website (ie iPhone apps, etc.) Mandala Treats are: 1. Full service airlines cut costs start to Compete 2. Entrance of other LCCs 3. High fuel price decreases yield 4. Accident, terrorist attack, and disaster and affect customer confidence 5. Aviation regulation and government policy 6. Increase in operation cost in producing value-added services 7. System Disruption due to Heavily reliance on online sales 8. Asean Open Sky enacted in 2015 17 | P a g e
  • 21. Strategic Marketing Plan 9. Six airlines So Tight Competitors in Asean Open Sky (Singapore Airlines, Thai Airways, Malaysia Airlines, AirAsia, Tiger Airways and Jetstar Airways. 10. The regulation on Law No. 1,2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors. 11. Foreign airlines also eyeing the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia. 12. The increase of in aviation fuel prices 13. The increase of in the customer's requirements of higher-quality products / services 14. Tiger Airways Mandala proposed name is replaced with the name Tiger. The correlation explanation between the strengths, weaknesses, threats, and opportunities are: 1. Strength/ opportunities (SO) 1. Increase Market Share 2. Increase Sales & Revenue 3. Expand current customer rewards program to build customer loyalty. 4. Expand freight air portion into former Tiger Airway and Local areas 5. Mandala Airlines utilized an electronic ticketing and an e-payment system. The airline had a 24-hour call center and a website for customers to book and pay for tickets electronically 2. Weaknesses/ opportunities (WO) 1. Build Strong Mandala Brand 2. Increase number of airplanes 3. addition Route 4. Improve efficiency through the use of aircraft Airbuss 5. Focus on service, speed and departure point-to-point. 3. Strength/ Treats (ST) 1. Expand brand recognition as top low-cost air carrier to eliminate competition. 2. Retain low-cost operating strategy to remain competitive. 3. Focus on the importance of safety, security, and service. 18 | P a g e
  • 22. Strategic Marketing Plan 4. Focus on the timeliness 5. Offer the most competitive price 4. Weaknesses/ Treats (WT) 1. Increase load capacity to get 2. maximum value out of jet fuel. 3. Initiate employee rewards program for productivity and customer retention. 4. Create expanded strategy and growth plan to thwart competition. 5. Reduce the cost of jet fuel that will decrease operational costs 2.4 Competitor Analysis based on 4P’s We also analyze the competitor using the 4P’s, which are Product, Price, Place and Promotion. For the competitor analysis, we try to compare some of airline industry in Indonesia, which are : Lion Air, Sriwijaya Air, Air Asia, Merpati Nusantara Airlines, Batavia and Garuda : Citilink Airlines. The competitor profile can be seen in Exhibit 3 : The Competitor Profile. 1. Product The product is an airline services, at the Low Cost Carrier Airlines segment. 2. Price The detailed price comparison can be seen in Exhibit 4 : The Airlines Price Comparison 3. Place In the airline industry, place means the media that customer can buy the tickets. The detailed place for the ticketing can be seen in the Exhibit 5 : The Airlines Ticketing Place 4. Promotion The detailed place for the ticketing can be seen in the Exhibit 6 : The Airlines Promotions 19 | P a g e
  • 23. Strategic Marketing Plan 2.5 Consumer’s Insights To have a strong in the analysis of Mandala and to make an accurate marketing strategy of Mandala, we have approach some of the airlines customers. The goals is to have the insights from the customer’s perspective about their experience using airline services. Using a quantitative research method, the specific research method we use are Deep Interview, Story Telling and Netnography. The goals of this research are getting a closer look and detailed information about :  the segmentation and the customer target,  the customer behavior,  the insights of the airlines customer,  any supporting factors and inhibiting factors in the process of the brand development  find new and fresh idea for the new development strategy 1. Deep Interview and Story Telling Method The process of collecting the data, we had a deep interview for 50 customer, who are divided in to 2 characteristic, the users of the new mandala and the non-users of Mandala. And the analysis based on the interview are divided in to 3 : 1. Customer’s Profile 2. Airlines Profile 3. Mandala Brand Awareness 20 | P a g e
  • 24. Strategic Marketing Plan 1. Costumer’s Profile Figure 9 : Customer’s Insights: Customer’s Profile Based on the deep interview, 100% of the respondents have traveled within a year. Majority in 36% they traveled 4-8 times/ year, 29% they have traveled 1-3 times/year, 21% have traveled >12 times/year and 14% they have traveled 8-12 times/year. For the domestic destination, 13 % of the travelers, travels to Yogyakarta and Surabaya, 9% of the travelers, travels to Semarang, Makasar and Denpasar, etc. For the international destination, 37% of the travelers, travels to Singapore, 18% travels to Kuala Lumpur, 13% travels to Bangkok and 11% travels to Hongkong, etc. 21 | P a g e
  • 25. Strategic Marketing Plan 2. Airline Profile Figure 10 : Customer’s Insights: Customer Transportation We asked the respondent about the transportation they use to travel. For the international destination, 100% are using airplane. But for the domestic destination, 79% are using airplane, 13% they travel using their own vehicle, 7% using public transportation such as bus or travel agencies and 1% are still using train. 22 | P a g e
  • 26. Strategic Marketing Plan Figure 11 : Customer’s Insights : Airline’s Profile For the airline’s profile, customer’s bought their ticket 71% using online services and 29% are using travel agent. For the airlines corporation they use, majority use Air Asia and Garuda (30%) and 13% using Mandala Air and Lion Air. And the reason they are using these airlines are 79% because of the price, 75% are because of the promo offered, 65% are because of the Route hub and 57 % are because of the airlines provide’s foods and the punctual time. There are 46% of the customer who are not aware of the type of the plane. 23 | P a g e
  • 27. Strategic Marketing Plan 3. Mandala Brand Awarness Figure 12 : Customer’s Insights: Mandala Brand Awareness All of the respondent have heard about Mandala (100%) and 69% of it have flight using Mandala because of the Good Service and Good Pilot (Landing) – 18%, 16% because of the fair price, 14 % because of the easy and quick to do reservation online and the clean-comfort of the airplane and also the punctual time. 2. Netnography Method In netnography methode, we try to capture consumer insight through the social media. The information about Mandala’s return have some pro and some contra. Here are some pro about the return of Mandala. They are happy about the returning of Mandala. The detailed about the pro of the return of Mandala can be seen in Exhibit 7 : Netnography Customer Pro 24 | P a g e
  • 28. Strategic Marketing Plan Figure 13 : Customer’s Insights: Netnography #1 Here are some contra about the return of Mandala : The detailed about the contra of the return of Mandala can be seen in Exhibit 8 : Netnography Customer Contra Figure 14 : Customer’s Insights: Netnography #2 25 | P a g e
  • 29. Strategic Marketing Plan Chapter 3 Marketing Segmentation, Target Market, and Positioning Figure 15 : Mandala Marketing Segmentation, Target Market and Positioning 3.1 Market Segmentation Mandala market Segmentation are travelers, promo lovers, shopaholic and value added seeker. 3.2 Target Market The Mandala’s target market is the Value Added Seeker which leads to people looking for added value at a low price. This opportunity is a good market for Mandala with the concept of low cost carrier. 3.3 Positioning Mandala will position itself to consumer’s mind as an low-cost airline (low cost carrier), which focuses on the “Low Price - High Value” by applying the importance of safety, security, service and timeliness. 26 | P a g e
  • 30. Strategic Marketing Plan Chapter 4 Marketing Goal and Objectives Marketing goal and objectives :  Build a strong Mandala Brand  Communicate the New Mandala Values and Commitment  Increase Market Share  Increase Sales & Revenue  Open new route with lower costs  Create Mandala New Experience 27 | P a g e
  • 31. Strategic Marketing Plan Chapter 5 Marketing 4C’s Strategies and Tactics To reach the marketing goals which are building a strong Mandala Brand , Communicate the New Mandala Values and Commitment , Increase Market Share , Increase Sales & Revenue Open new route with lower costs and Create Mandala New Experience, here are the Marketing 4C’s Strategies and Tactics : Consumer Cost Convenient Communication Figure 16 : Mandala Marketing 4C’s Strategies and Tactics 5.1 Consumer For the product, Mandala will open a new route expanding and exploring the east of Indonesia which are not touched by the other airlines. Mandala will also open new rout to Bali, and Maluku. 28 | P a g e
  • 32. Strategic Marketing Plan Full Service Not Favorite New Route Airlines Route Route • Medan – • Medan – Bali • Medan - Maluku Singapore – Raja Ampat/Wakatobi Figure 17 : Consumer: New Product Development 5.2 Cost The cost/price strategy is to set the price to be affordable. Below Full Service and average Low Cost Carrier Airways Figure 18 : Cost : Bowman’s Strategic Options Ancillary Fees: Reservation changes, baggage limitations, frequent flyer point sales, concession 29 | P a g e
  • 33. Strategic Marketing Plan In-flight service  Mandala Airlines is give choices of seats class service airline. It had a buy on board service offering food and beverages for purchase by passengers, but no in-flight entertainment. Seats were reserved and allocated during check-in. free in-flight magazines or newspapers and blanket were provided during flight.  Mandala Airlines had a baggage are included in the flight price about 20 kilos. Priority passengers also benefit from better seat locations (at the front of the aircraft), free lounge access and free food and beverages (both in lounges and during flight). 5.3 Convenient Here are the convenient for the New Mandala, and for the Mandala Website can be seen in Exhibit 9 : Mandala Website. Mandala web site website for customers to Mandala Bye-Pass® Mobile Web program book and pay for tickets airport self-service kiosks electronically. Travel agency web sites Corporate booking Traditional travel (e.g. Travelocity, agencies agencies Expedia) In line with current airline practice, Mandala Mandala T.T.M The airline had a 24-hour Airlines utilized an call center Ticket Teller Machine electronic ticketing and an e-payment system. Figure 19 : Convenient for the New Mandala 30 | P a g e
  • 34. Strategic Marketing Plan 5.4 Communication For the communication about the new Mandala, first we clarify the brand first. Figure 20 : Clarification of Mandala Brand The marketing vision for Mandala is being the Low Cost Carrier Airline icon as the market leader in the LCC Airlines. The core are is being the brand leadership premium. 31 | P a g e
  • 35. Strategic Marketing Plan 1. Brand Strategy Platform Mandala Brand Strategy platform: Brand target is for the Value Added Seeker, with the brand essence is Everyone already fly. The brand positioning is the Low Price-High Value and for the brand personality is the active dynamic and modern people. Figure 21 : Mandala Brand Strategy Platform Looking at the Value Curve, it’s very obvious that the Mandala Direct offering differs greatly to its competitor. By cutting out costly traditional elements such as ticket price. It provides food and convenient lounge with a higher value than rivals. Mandala position the brand as the airline with low price-high value. The competitor did not provide more benefits to its customers. Therefore Mandala provides additional value such as a dining and lounge facilities. Mandala Direct's service is for everyone. 32 | P a g e
  • 36. Strategic Marketing Plan Figure 22 : The New Mandala Value Curve 2. Co creation Co-creation, maintaining the quality of Mandala services and Maintain the service of the product. We create new services for Mandala customers especially in the reservation area; we call it Mandala Check and Go. The website would be more simple, easy and quick to access. The aim is to attract more customers especially in value added seeker. People who are a value added seeker, has a very concern in time and seeking for the product quality especially the benefits for themselves comparing to others. Maintain the service of the product; the aim is to satisfy and create more value to the customers. 3. Communal Activation Mandala must create a creative outlet to attract customers. The outlet must have a unique experience like the products, combine with some activities. The activity must 33 | P a g e
  • 37. Strategic Marketing Plan take place at malls or office area. The creative outlet we named it Mandala Lovers’ Near You! 4. Conversation, we use 360 degrees to 365 days a year strategy include inside advertising, brand activation, digital media activities, and PR Events. Mandala must create a community itself. Our suggestion name is Mandala Lovers. The community contains people with the same interest, value added seeker. The Campaign : Global Campaign Local Campaign Where can Fly All You Can Fly promotions allowed consumers and for the to buy a monthly pass for Local unlimited travel to Mandala destinations. Mandala believes half of the buyers had not flown them before Figure 22 : The New Mandala Brand Campaign 34 | P a g e
  • 38. Strategic Marketing Plan The following table describes how Mandala's marketing program supports its brand position. 360 degrees Communication Framework : Figure 23 : The New Mandala 360 degree Communication 5. Commercialization  To create the buzz, name we name the activation Mandala Near You! The outlet for exhibition should not stay long, so the customer could search for Mandala and wondering what’s their New Unique Experience.  Creative and interactive sales promotion, especially in the social media to boost the awareness.  Social Media, Extensive use of social media allows Mandala to create buzz with very little cost. 35 | P a g e
  • 39. Strategic Marketing Plan  Website, Visitors to www.Mandalaair.com can browse an Experience Mandala section that features videos of consumers talking about the various benefits of flying Mandala (e.g., space, entertainment, etc.)  Mandala Flyer Lovers, This loyalty program to address customers' desire for the elimination of blackout dates, an extended lifespan for points, and a shift to points for miles flown rather than money spent.  Continue to Stress Differentiation, Mandala’s new You Above All campaign is built upon stressing the idea that the flying experience is significantly better with Mandala than with other airlines. Continuing this focus is the best way to ensure customer know what Mandala Air stands for, especially as the company’s ability to continually provide a significantly lower price comes into question.  Leverage Integrated Customer Service System, Mandala’s new customer service system11 provides a great way for the company to profile its customer base, investigate customer actions, and understand key loyalty drivers. Using this tool to build a targeted marketing program that tailors messages to customers will enable Mandala to increase effectiveness.  Target Price Sensitive People, Mandala is in a unique position to target customers who are a value added seekers during tough economic times. As a discount provider who also focuses on customer service, they can appeal to cost- sensitive people that need to cut travel costs but don’t want to sacrifice comfort, convenience, and modernity. Mandala should investigate opportunities to increase corporate travel partnerships. 36 | P a g e
  • 40. Strategic Marketing Plan Chapter 6 : Controls – progress measurement and monitoring Controls – progress measurement and monitoring Figure 24 : The Mandala Controls – progress measurement and monitoring We suggest Mandala could be concern to the customer loyalty. Nowadays, many brands are trying hard to grab attention and getting new customer. Instead of investing to grab new market which are not necessarily loyal, the most important thing is maintain your customer not searching for new customer. Mandala and Tiger already has their own community, we just have to maintain them and make them loyal. If the customers are loyal, then they are Mandala Lovers Stars, who will share experience about the product and suggesting people to buy the product without asking any compliment. So, let Mandala Lovers Stars be Mandala Word Of Mouth Agent. That’s why we use Return on Marketing Investment (ROMI) to see the optimization of marketing activities in the short and long term to increased revenue, profit and also market share. 37 | P a g e
  • 41. Strategic Marketing Plan Reference Keller, Kevin Lane. 2008, Strategic Brand Management, Building, Measuring and Managing Brand Equity, Pearson Kim, W.Chan and Mauborgne R., 2005. Blue Ocean Strategy : How To Create Uncontested Market and Make Competition Irrelevant, Harvard Business School Publishing Corporation Kotler, Philip and Keller, Kevin Lane. 2006. Marketing Management. Pearson Rangkuti, Freddy. 2009, Analisis SWOT : Teknik Membedah Kasus Bisnis, PT. Gramedia Pustaka Utama. 38 | P a g e
  • 42. Strategic Marketing Plan Appendix Exhibit 1 : Mandala SWOT Matrix Analysis Exhibit 2 : Mandala IPAS and EPAS Exhibit 3 : The Competitor Profile Exhibit 4 : The Airlines Price Exhibit 5 : The Airlines Ticketing Place Exhibit 6 : The Airline Promotion Exhibit 7 : Netnography : Customer Pro Exhibit 8 : Netnography : Customer Contra Exhibit 9 : Mandala Website 39 | P a g e
  • 43. Strategic Marketing Plan Exhibit 1 : Mandala SWOT Matrix Analysis Strength Weaknesses 1. Shares owned Mandala 1. Service resource is limited by lower Saratoga Capital (51%), costs Limited human resources Tiger Airways (33%), Situation Could not handle irregular. concurrent credit of 15%, and the old shareholders 2. Government interference and Cardig and Indigo (1%). regulation on airport deals and passenger compensation. 2. Tiger Sandiaga and prepare capital of U.S. 3. Non-central location of secondary $ 250 million. airports. 3. Tiger Airways business 4. Brand is vital for market position and model adopted. developing it is always a challenge 4. Low-cost airline 5. Heavy reliance on outsourcing 5. Mandala operated 6. New entrants to Provide the price- scheduled services to sensitive services three international and 17 7. Mandala is still not a good name in domestic destinations, the public eye since 2011 had been used a narrow-body fleet frozen. of Airbuses. 8. The plane is still not much 6. The name Mandala is not changed 9. Mandala routes are limited. 7. Safe and reliable flights 10. Other companies using the LCC business model too. 8. Tiger Airways, together with its associated 11. New Mandala will penetrate the airlines, operates a fleet of Jakarta-Medan route. As for the 32 Airbus A320 aircraft international flights will start from Jakarta to Kuala Lumpur, Malaysia. 40 | P a g e
  • 44. Strategic Marketing Plan Opportunities Strength/ opportunities (SO) Weaknesses/ opportunities (WO) 1. The growth of the aviation 1. Increase Market Share 1. Build Strong Mandala Brand industry average of 20% -21% per year. 2. Increase Sale & Revenue 2. Increase number of pesawat 2. Long haul flight to get your 3. Expand current customer 3. addition Route trial is an undeveloped market rewards program to build share customer loyalty. 4. Improve efficiency through the use of 3. Differentiation from aircraft Airbuss traditional LCC models by adding 4. Expand freight air portion into former Tiger Airway 5. Focus on service, speed and customer services or as full- and Local areas departure point-to-point. service operation with a low fare airline 5. Mandala Airlines utilized 4. Ongoing industry an electronic ticketing and consolidation has opened up an e-payment system. The prospects for new routes and airline had a 24-hour call airport deals center and a website for 5. High fuel prices will squeeze customers to book and out unprofitable competitors pay for tickets 6. Service low cost carrier (LCC) electronically more attractive to suck 80% market share. 7. 16 domestic routes and four international routes 8. Target the middle class 7 million people each year. 9. Increased tourism sector 10. 60 million passengers by 2015 and 75 million by 2020. 11. Mandala will operate 10 Airbus A320 aircraft. 12. Aviation Law. Airlines or foreign investment wilcl still be able to build the airline in Indonesia, as long as the majority of shares held by local investors. 13. Expand the technology of the website (ie iPhone apps, etc.) 41 | P a g e
  • 45. Strategic Marketing Plan Treats Strength/ Treats (ST) Weaknesses/ Treats (WT) 1. Full service airlines cut costs 1. Expand brand recognition 1. Increase load capacity to get start to Compete as top low-cost air carrier 2. Entrance of other LCCs to eliminate competition. 2. maximum value out of jet fuel. 3. High fuel price decreases yield 3. Initiate employee rewards program 4. Accident, terrorist attack, and 2. Retain low-cost operating strategy to remain for productivity and customer disaster and affect customer retention. confidence competitive. 5. Aviation regulation and 4. Create expanded strategy and growth 3. Focus on the importance government policy of safety, security, and plan to thwart competition. 6. Increase in operation cost in service. 5. Reduce the cost of jet fuel that will producing value-added services 4. Focus on the timeliness decrease operational costs 7. System Disruption due to Heavily reliance on online sales 5. Offer the most 8. Asean Open Sky enacted in competitive price 2015 9. Six airlines So Tight Competitors in Asean Open Sky (Singapore Airlines, Thai Airways, Malaysia Airlines, AirAsia, Tiger Airways and Jetstar Airways. 10. The regulation on Law No. 1,2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors. 11. Foreign airlines also eyeing the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia. 12. The increase of in aviation fuel prices 13. The increase of in the customer's requirements of higher-quality products / services 14. Tiger Airways Mandala 42 | P a g e
  • 46. Strategic Marketing Plan proposed name is replaced with the name Tiger. Exhibit 2 : Mandala IPAS and EPAS IFAS & EFAS Analysis Internal Factors Weight Rating Weighted Strength Score Shares owned Mandala Saratoga Capital (51%), Tiger Airways (33%), concurrent credit of 15%, and 0.08 4 0.32 the old shareholders Cardig and Indigo (1%). Tiger Sandiaga and prepare capital of U.S. $ 250 0.05 2 0.1 million. Tiger Airways business model adopted. 0.03 1 0.03 Low-cost airline 0.03 3 0.09 Mandala operated scheduled services to three international and 17 domestic destinations, used a 0.09 2 0.18 narrow-body fleet of Airbuses. The name Mandala is not changed 0.12 4 0.48 Safe and reliable flights 0.11 3 0.33 Tiger Airways, together with its associated airlines, 0.1 4 0.4 operates a fleet of 32 Airbus A320 aircraft Total 0.61 3 1.93 Weaknesses Service resource is limited by lower costs Limited human resources Situation Could not handle irregular. 0.1 4 0.4 Government interference and regulation on airport deals and passenger compensation. 0.07 1 0.07 Non-central location of secondary airports. 0.04 3 0.12 Brand is vital for market position and developing it is always a challenge 0.1 4 0.4 Heavy reliance on outsourcing 0.06 2 0.12 43 | P a g e
  • 47. Strategic Marketing Plan New entrants to Provide the price-sensitive services 0.03 2 0.06 Mandala is still not a good name in the public eye since 2011 had been frozen. 0.03 3 0.09 The plane is still not much 0.03 3 0.09 Mandala routes are limited. 0.03 3 0.09 Other companies using the LCC business model too. 0.03 3 0.09 New Mandala will penetrate the Jakarta-Medan route. As for the international flights will start from Jakarta to Kuala Lumpur, Malaysia. 0.04 3 0.12 Total 0.39 3 1.18 TOTAL 1 3 2.05 EFE Matrix for Mandala Airlines External Factors Weight Rating Weighted Opportunities Score The growth of the aviation industry average of 20% -21% per year. 0.07 3 0.21 Long haul flight to get your trial is an undeveloped market share 0.12 4 0.48 Differentiation from traditional LCC models by adding customer services or as full-service operation with a low fare airline 0.05 1 0.05 Ongoing industry consolidation has opened up prospects for new routes and airport deals 0.05 1 0.05 High fuel prices will squeeze out unprofitable competitors 0.04 2 0.08 Service low cost carrier (LCC) more attractive to suck 80% market share. 0.04 3 0.12 16 domestic routes and four international routes 0.04 3 0.12 Target the middle class 7 million people each year. 0.04 3 0.12 Increased tourism sector 0.04 3 0.12 60 million passengers by 2015 and 75 million by 2020. 0.04 3 0.12 Mandala will operate 10 Airbus A320 aircraft. 0.04 3 0.12 Aviation Law. Airlines or foreign investment will still be able to build the airline in Indonesia, as long as the majority of shares held by local investors. 0.04 3 0.12 Expand the technology of the website (ie iPhone apps, etc.) 0.04 3 0.12 Total 0.37 3 1.83 44 | P a g e
  • 48. Strategic Marketing Plan Threats Full service airlines cut costs start to Compete 0.06 4 0.24 Entrance of other LCCs 0.05 1 0.05 High fuel price decreases yield 0.06 3 0.18 Accident, terrorist attack, and disaster and affect customer confidence 0.12 3 0.36 Aviation regulation and government policy 0.06 1 0.06 Increase in operation cost in producing value-added services 0.06 2 0.12 System Disruption due to Heavily reliance on online sales 0.04 1 0.04 Asean Open Sky enacted in 2015 0.03 1 0.03 Six airlines So Tight Competitors in Asean Open Sky (Singapore Airlines, Thai Airways, Malaysia Airlines, AirAsia, Tiger Airways and Jetstar Airways. 0.04 1 0.04 The regulation on Law No. 1,2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors. 0.02 1 0.02 Foreign airlines also eyeing the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia. 0.04 1 0.04 The increase of in aviation fuel prices 0.02 1 0.02 The increase of in the customer's requirements of higher-quality products / services 0.03 1 0.03 Tiger Airways Mandala proposed name is replaced with the name Tiger. 0.63 1 1.23 TOTAL 1 3 3.06 45 | P a g e
  • 49. Strategic Marketing Plan Exhibit 3 : The Competitor Profile Mandala Air Lion Air Sriwijaya Air Air Asia Merpati Batavia Air Citilink Nusantara Airlines PT Saratoga Investment PT Lion Mentari Airlines PT. Sriwijaya Air PT. Indonesia AirAsia. PT. Metro Batavia Group (51%), Tiger Airways(33%), Kreditur dan pemegang saham lama (16%) Presiden Direktur Diono Nurjadin Rusdi Kirana Chandra Lie Sardjono Joseph Saul Jhony Tjitrokusum o Mulai Beroperasi 17 April 1969, Berenti 19 Oktober 1999 2003 6 5 Januari 2002 8 Agustus 2008 beroperasi 10 Januari 2011 – September 4 April 2012 1962 Aliansi Tiger Airways Wings Air - Slogan Partner Airlines of Tiger We make people fly Enjoy Simplicity Airways Jenis Kelas Bisnis - Ekonomi Program Frequent Lion Pasport Club - Merpati Flier EasyFlyer Lounge Penumpang Mandala Priority Lion King Lounge - Website www.mandalaair.com www.lionair.co.id www.sriwijayaair.co.i www.merpa www.batavia- d ti.co.id air.co.id Facebook #fans Merpati airlines # 2.432 Twitter #followers @mandalaair #8.917 @lionairliners # 2.384 @SriwijayaairSJ @airasiaid #147.745 @merpati_i @bataviaair @citilink #18.154 @tigerairways #11.467 #2.703 nfo # 5.011 #3.242 @tigerairwayssg #14.280 @Sriwijayaair #1.200 Twitter tweets @mandalaair #632 0 @SriwijayaairSJ #18 30.929 6.330 28 8.147 @tigerairways #352 @Sriwijayaair #2 @tigerairwayssg #1.063 Youtube Citilink Jumlah Armada 11 72 29 33 Kota Tujuan 16 61 36 87 Jawa Jakarta o Bandung  Jakarta   Surabay Yogyakarta o Jakarta  Surabaya o Jakarta a Surabaya o Malang  Bandung o Semara (Bandar o Semarang  Semarang ng Udara 46
  • 50. Strategic Marketing Plan o Solo  Yogyakarta o Solo Internasi o Surabaya  Solo o Yogyak onal o Yogyakarta arta Juanda) o Suraba  Jakarta ya (Bandar o Malang Udara Internasi onal Soekarn o-Hatta) Bali & NTT Denpasar Denpasar Denpasar o Denpas Denpasar Kupang ar o Matara m o Kupang Kalimantan Balikpapan o Balikpapan Balikpapan o Pontian  Balikpap o Banjarmasi ak an n o Palang (Bandar o Berau karaya Udara o Palangkaray o Banjar Sepingga a masin n) o Pontianak o Balikpa  Banjarm o Tarakan pan asin o Taraka (Bandar n Udara Sjamsudi n Noor) Sumatera Padang o Banda Aceh  Banda Aceh  Batam Medan o Bengkulu  Palembang o Medan (Bandar Pekanbaru o Lampung  Pekanbaru o Banda Udara Palembang o Jambi  Medan Aceh Hang Banda Aceh o Medan  Padang o Padang Nadim) o Padang o Pekanb  Medan o Palembang aru (Bandar o Pangkal o Batam Udara Pinang o Jambi Polonia) o Pekanbaru DJB o Tanjung o Palemb Pandan ang o Tanjungpina o Pangka ng lpinang o Tanjun g Pandan 47
  • 51. Strategic Marketing Plan o Bengku lu BKS o Tanjun gpinan g Sulawesi Manado o Gorontalo  Makasar  Makassa Makasar o Kendari o Makass r, o Manado ar (Bandar o Palu o Kendari Udara o Makassar o Palu Internasi o Ambon o Manad onal o Ternate o Sultan o Ambon Hasanud din)  Manado Papua Manok wari MKW (Banda ra Rendan i) Jayapur a DJJ (Banda ra Sentani ) Asia Tenggara Singaporeya  Singapura  Malays   Vietnam o Singapura ia  Philimpes  Malaysia  Kuala o Cebu o Penang Lumpur o Clark o Kuala  Kuchin (Manila Lumpur g )  Timor Leste  Singap o Manila o Dili ura o Kalibo  Singap  Malaysia ura o Kinabal  Thailan u d o Kuala Lumpur  Bangko k o Kuchin  Phuket 48
  • 52. Strategic Marketing Plan g  Iran o Penang  Tehran  Isfahan  Timor Leste  Dili DIL Asia Timur  Republik Rakyat  Republ  Cina ik o Guangz Rakyat hou Cina o Haikou  Guangz o Shenzh hou en CAN  Hongkong  Macau  Srilangka  India o Bangal ore o Chenna i o Kochi o Thiruva nantha puram o Tirucha irapalli Timur Tengah Bangladesh  Arab   Dhaka Saudi  Jeddah JED (  Riyadh RUH Australia Brisbane Caines Goald Coast Hobart Melbourne Perth 49
  • 53. Strategic Marketing Plan Syney Exhibit 4 : The Airlines Price Booking 24 April Mandala Air Lion Air Sriwijaya Air Air Asia Merpati Nusantara Airlines Batavia Air Citilink 2012 (7 – 14 Mei) - pagi Jakarta – Denpasar Promo Rp. 401.000; Promo Rp. 500.000; Promo n/a Promo Rp. 379.000; Eco 0 Rp. Pro 399.090; mo Ekonomi Rp. 643.000; Ekonomi Rp. 530.000; Reguler Rp. 443.900; Flexi Rp. 588.000; Eco Rp. 716.900; Bud get Business n/a Business n/a Ekonomi Rp. 698.000; Eco Rp. 886.900; Me diu m Business - Eco Rp. 1.266.900; Pre miu m Denpasar - Jakarta Promo Rp. 544.000; Promo Rp. 460.000; Promo n/a Promo n/a Eco 0 Rp. Pro 399.090; mo Ekonomi Rp. 643.000; Ekonomi Rp. 530.000; Reguler Rp. 443.900; Flexi n/a Eco Rp. 556.900; Bud get Business n/a Business n/a Ekonomi Rp. 918.000; Eco Rp. 886.900; Me diu m Business - Eco Rp. 1.266.900; Pre miu m 50