AMB320 Advertising Management task: This assessment provides Advertising Management students with the opportunity to work on a ‘real world’ case and develop and present an advertising strategy to address the issues presented in the case. In teams, you are to analyse a real client brief based. As part of the case analysis you need identify the key advertising issue and prepare a 15 minute presentation which outlines how you are going to solve the advertising problem. A full advertising campaign (including media plan, budget allocation, and creative concepts) is expected as solution for the case. Teams are expected to present a well-researched and creative full advertising campaign including objectives, consumer insights, big idea, and a rationale for the strategy that brings the idea to life, creative concepts, implementation plan, media plan, budget allocation, and contingency plans. As a team you are to present your solution to the case as if you were pitching to the client. You must be able to justify your findings and sell your ideas to convince the client that your strategy is the most effective way forward.

1. Personalise your flight experience

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The Team
Jordy
● Advertising Problem
● Consumer Profiles
● Key Insights
Bronte
● Media Objectives
● Media Strategy
● Message Strategy
Tayla
● The Big Idea
● Advertising objectives
● Advertising strategy
● Goals
● Why it works
Emily
● Campaign Timeline
● Budget
● Looking forward

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SWOT
Strengths Weaknesses
ThreatsOpportunities
Website Interface
Negative Customer Reviews
Low Cost Model
Online e-ticket system, no cost
of issuing physical tickets
Leader in low-cost carriers
across asia particularly Malaysia
Competitors: Tigerair, Jetstar,
Scoot, similar pricing structure
Competitors do not advertise in
travel blogs
AirAsia berhad (AIRASIA, 2014)
Slideshare.net (2016)

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There is a lack of awareness amongst
consumers in regards to ancillaires and their
exclusion in ticket pricing, as such Air Asia is
missing out on valuable revenue.
Advertising Problem
Price High
Low
Low
Quality
High
Quality

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Target Market
18-39 years old
Australia-wide
Low/Medium Disposable income
Socially active and influenced
Price Conscious
Millennial Gen: Opened minded / Open to change
Singhal, M. (2013)
Academia.edu (2016)

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Maldonado, Yasmin. "5 Different Types Of Travelers | Affordabletours.Com Travel
Blog". Blog.affordabletours.com. N.p., 2015. Web. 1 June 2016.

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The Budget traveller
- Blogger, Hobby orientated traveller, Social worker
- Frequent Traveller/ Budget Traveller
- Altruistic and Opened Mind (does not like to ‘waste’)
- Heavily active online
-
- Meal Plans, Hot meals
- In-flight entertainment
- Quiet Zone

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The Group
- Groups of People
- Carefree/ Responsibility-free, Post-High school, Short-term minded
- Low Disposable Income, Parental Income
- Group Decision-making, mixed genders, all or none
- - High Flyer
- Meal Plans, Hot meals
- Pick a seat
- In-flight entertainment
- Extra baggage (overseas purchases)

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The Adventurer
- Single/ Dual Traveler (meeting a friend overseas)
- Non-tourist reasoning, Action-orientated
- Low Disposable Income, willing to ‘rough it up’
- Outgoing, Laidback, Carefree
- Meal Plans, Hot meals
- Pick a seat
- In-flight entertainment
- Extra Baggage

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Key Findings
● Airlines adopt price partitioning to seek further revenue due to poor economy
● Charging a fee for what used to be free often outrages consumers
● Pricing bundling is the best way to meet the varying needs of the travelling public
● Preference for particular services is increased when there is a personalised value proposition.
● Important to determine what ancillary creates the most value to individual consumers
● Swinging the power from the company to the customer, makes consumers feel in control of their purchases
● Electronic goods ask you to “accessorize” with various different gadgets - consumers respond better (don't view it as an
extra)
● Customers are sometimes unaware of extra fees- websites will need to be customised to solve this issue
(O'Connell & Warnock-Smith, 2013) (Fruchter, Gerstner, & Dobson, 2010) (Vandermerwe, 1997)

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Key Insight
Charging a fee for services that were previously free creates outrage
amongst young Australian Consumers who like to be in control of their
purchase decisions.
(Fruchter, Gerstner, & Dobson, 2010)

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The Big Idea
To implement a clear distribution infrastructure of ancillaries by custom
designing the checkout page, creating an interactive experience for
customers to personalise their own flight experience, as well as increasing
awareness of the ancillaries by crafting three relatable brand Characters.

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Advertising Objective
Is to generate awareness of ancillaries pre-flight and change
negative connotations surrounding “add ons” currently being
held by young Australians aged 18-39 with in a one year
period.

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Goals
- 20% Rise in Ancillary revenue by December 2017
- 100% ROI in one year
- Generate awareness of extras pre-purchase & post
purchase
- Increased engagement on website through
conversions from the social media adverts

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Advertising Strategy
Phase 1 - Re-Design
Phase 2 - Awareness/ Engagement
Phase 3 - Direct Marketing/ Engagement
Phase 4 - Campaign Effectiveness

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Phase 1 - Re-Design
● Implementation of interactive design on the existing website
● Check-out will undergo a redesign
● New Check-out will encourage customers to interact with the ancillaries
● Customers can Visualize their flight experience
● Selection of a character (personal experience)
● The more ad ons, the happier the Character & the better the flight experience

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WebsiteMockup

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Phase 2- Pre-purchase Awareness
● Rolls out as soon as re-design is implemented
● Creates Awareness & encourages click through rates to website
● Series of sponsored social media campaigns over 1 year:
- Facebook
- Instagram
- youtube
- Selected Travel blogs
● Social posts will use the three different types of travellers
- The Budget Traveller
- The Group
- The adventurer
● Electronic emails also sent out to existing customers to inform
creates emotional/ relatable connection

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Facebook Sponsored Ads

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Instagram Sponsored Ads

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YouTube Sponsored Ads

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Phase 3 - Post-Purchase engagement
● Post purchase touchpoints with the customer
● Re-informing what they have already seen
● EDMs sent out reminding people who have already purchased, to select
ancillaries before flight
● Creates engagement - Consumer engages with the new checkout

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Phase 4 - Campaign effectiveness
● The effectiveness of the Campaign will be analysed/ measured
● If targets are not reached by 1 year - Contingency plan will go ahead

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Why it works
● Although there are negative connotations surrounding price partitioning it works because;
- Increases revenue
- Meets varying needs of the travelling public
- Allows customization
● “Customers respond to dynamic and personalised offerings”
- Preference for particular services is increased when there is a personalised value proposition
- Customisable flights
- Relatable brand character
● Campaign fits with the target market who utilise social media
● Interactivity on a website increases engagement and user experience
● Interactive elements trigger emotional connections creating lasting impressions on an individual's
mind.
(Nason, 2009) (O'Connell & Warnock-Smith, 2013) (Charrier, R. 2016) (Moon, 2016)

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Key Message
“If you’re able to personalise your holiday,
you should be able to personalise your flight experience.”

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Message Strategy
Our message strategy is to appeal to the customers need for a dynamic and personalised
offering, instead of simply asking for them to “pay for extras”.
● Generate awareness of the new checkout experience for existing customers
● Attract new customers who might have been previously turned off by negative
experience.
(O'Connell & Warnock-Smith, 2013)

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Media Objectives
● Reach 60-70% of the target market
● Aim to reach the consumer at least 3 times over the duration of the campaign as recall
is higher after three points of contact.
(Kelly & Stewart, 2015)

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Phase 2 - Media Selections
Sponsored Ads on Social Media
● Cost effective
● Consumers are drawn to this media (93% accessing everyday)
● Able to analyse the channels where consumers are seeing our ads
● Travel blogs are specifically targeted to travellers (looking for cheap airfares)
● Lonely Planet, Our Awesome Planet, Out of Town, Pinoy Adventurista
(Charrier, R. 2016)

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Phase 3 - Media Selections
Post Purchase EDM
● Cost effective
● Nurtures existing customer
● Cross-sell other offers
● Builds brand loyalty
(Experian Marketing Services, 2013)

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Campaign Timeline
Australians travel abroad in two peak seasons: June and December.
Campaign will run for:
● One year
● Two eight-week periods of social media campaigning leading up to peak holiday seasons.
● Benefits of capturing all travel seasons and holidays.
(Australian Bureau of Statistics, 2016)

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Media Scheduling
Flighting Schedule:
● Used for seasonal campaigns
● Linked to the purchasing cycle of the consumer
● Allows greater frequency during period of the campaign
How will it work?:
March-May: 8 weeks of scheduling: medium > heavy > light
August-October: 8 weeks of scheduling: medium > heavy > light
(Kelly & Stewart, 2015)

33. Budget

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Measurements of Success
Average ancillary purchase: before, during and after.
Click throughs to the website from the various ads.
Website visits and interactions.
-number of pages visited
-time spent on pages

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Predictions
● We will make 100% ROI within the year.
● There will be a 20% rise in ancillary revenue by December 2017
● Consumers will be more aware of ancillaries both before and after
purchase and they will be more engaged with the AirAsia website.

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Contingency Plan
If halfway through the campaign, around June, ancillary sales haven’t increased by at
least 20% then we will make pre-made ancillary bundles available for purchase on the
website. They will be added innocuously to the side of or under the ticket information section in
the checkout, as well as be advertised in the post-purchase eDM’s.
These bundles will contain four or five of the most popular ancillaries to our target groups. The
bundle will have a 10-15% discount off the total price, this will make them more appealing to
the target markets.
This plan still focuses on the increase of ancillary purchase while simultaneously easing
consumers perceptions of high costs and their concerns for saving money.

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Further Recommendations
Once a positive outcome has been reached at the end of the campaign, we
encourage the client to consider:
● Bring to life the cartoon characters created as “brand ambassadors”
for inflight videos, mascots at travel expos and television ad campaigns
to make them household names
● Put more money towards the use of print media such as posters in the
travel magazines placed in travel agents as it has been shown that
when print and digital medias are combined, lifts in sales and ROI are
visible sooner in the campaign and recall among consumers is higher,
compared to a campaign which has only digital media (Mulvey, 2013).

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//www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features20Sep+2010
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Fruchter, G., Gerstner, E., & Dobson, P. (2010). Fee or free? How much to add on for an add-on. Marketing Letters, 22(1), 65-78. http:
//dx.doi.org/10.1007/s11002-010-9112-3
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