This document discusses the pricing strategies and success of Air Arabia, a low-cost airline in the Middle East and North Africa region. It summarizes Air Arabia's history, starting in 2003 with two aircraft and growing to 55 aircraft by 2015. Air Arabia succeeded by offering affordable prices, a great flying experience, and good customer service with their "Pay Less, Fly More" approach. The document also analyzes why other airlines have not replicated Air Arabia's business model and whether Air Arabia can maintain its leadership position amid new competition and if others adopt the same strategies.

1. DEVELOPING PRICING
STRATEGY AND
PROGRAMS
SUBMITTED BY – BHAVIKA CHEGU (Christ University, Bangalore)
UNDER THE GUIDANCE OF PROF. SAMEER R MATHUR (IIML)
SUMMER REMOTE INTERNSHIP IN MARKETING

2. DE-CODING THE SUCCESS MANTRA
WITH REGARD TO ITS STRATEGIES AND
MODELS…
“ PAY LESS, FLY MORE “
WITH GREAT FLYING EXPERIENCE, AFFORDABLE
PRICES AND GOOD CUSTOMER SERVICE !

3. TAKING OFF FROM ITS INITIAL STAGES IN THE YEAR 2003…..

4. TIME LINE OF THE COMPANY AND ITS ACCOMPLISHMENTS.
Took off in 2003 with ONLY 2 leased Airbuses – A320 jets
Positioned itself as the ONLY Low-cost airlines in Middle East
and North Africa (LCC)
Outset its competitors by offering the customers with Comfort,
Efficiency and safety
Aimed to have 55 aircrafts by 2015 and expand its wings into
different markets

5. CONNECTING THE DOTS…
• Objectives
• Penetration
• Customer Oriented
• Factors & Variables
• Promotional Pricing
PRICE
METHODOLOGY

6. TAGGING THE USP !
LIGHT FARES FOR A HEAVY TRIP …

7. DIGGING THE ROOTS…
Success lies in the following :
• Understanding of the target MARKETS
• Analyzing the CONSUMER BEHAVIOUR
• Reviewing the Competitors OFFERS
• Making customers aware about its USP
• Satisfying their needs thereby building
strong CUSTOMER BASE
• Developing strategies and models to
achieve the desired OBJECTIVES
• Prioritizing on future needs by focusing
on TECHNOLOGY
• Benefiting from various UNTAPPED
markets and models

8. CASE ANALYSIS
1. Air Arabia has succeeded in profitably challenging big established
airlines companies in the Middle East and North Africa. Why don’t
all other airlines apply the same business model as Air Arabia ?
2. What challenges does Air Arabia face? Do you think the company
will be able to maintain its leadership position in the LCC market
in the Middle East and North Africa? What will happen if another
airlines apply the same business models as Air Arabia?

9. Analysis…
1. Air Arabia has successfully established and positioned itself in the
airlines market as the premier LCC Company.
Other companies fail to follow the same strategy as this because of
MARKET PENETRATION, below are few important points to look at:
- It follows unique pricing strategies to achieve this success
- Main aim lies in strategizing over Man power and technology.
- This was achieved by concentrating more on technology thereby
reducing the human workforce
- Also using a high end version of the aircraft model lowered the
training expenditure for the man power
- Analyzing and identifying an untapped markets stood as a key
point in its growth and success
- Utilization of new methods like hedging strategy, Sharklet
Technology, User-friendly app etc created its own space in the market
- Along with identifying such sources, Proper understanding of the
market channels helps to penetrate the brand into the customers

10. Analysis…
2. Although it was the initial company that opened
opportunities to explore in the local air force market, new
entrance into the market and rival pricing traps and
competition prices exploit the business leading to challenge its
position in the market.
Talking about the Middle East and North Africa, Air Arabia
stands still at its place not allowing anyone to take its position
because of its Market survey and Penetration. Hence, it is
difficult for someone to grab their position in an established
markets.
As models and strategies are customized according to the
nature and size of the organization it is unpredictable if the
same marketing tactics will suffice the need or no in order to
take its revenue

11. REWINDING
BACK THE
CONCEPTS !
- Pricing plays a crucial role in marketing mix as it is
responsible in generating revenue
- Consumer penetration of product plays a crucial role in
estimating the market positioning
- Price Policy and methods as per the guidelines help
promote its goodwill in the market
- Pricing Dynamics and Adaptability leading to flexibly serve
various customer needs

12. DISCLAIMER
LANDING OFF THE PRESENTATION !
I Would like to thank Prof. SAMEER R MATHUR (IIM Lucknow) for
guiding me through this “MARKETING INTERNSHIP”