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Air Asia Marketing Analysis

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Project includes:
- Background/ History
- Strategy
- Marketing Mix
- SWOT Analysis

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Air Asia Marketing Analysis

  1. 1. "Now Everyone Can Fly"..
  2. 2. BACKGROUND/HISTORY
  3. 3. BACKGROUND/HISTORY Thai National Airline was the only one airline which could fly in the main routes such as Bangkok-Chiang Mai by non-stop traveling in the past. Other airlines had to land at Utapao airport before taking off to Chiang Mai.
  4. 4. Utapao Airport a joint civil-military public airport serving Rayong and Pattaya (city in Chonburi).
  5. 5. BACKGROUND/HISTORY The beginning of low-cost airlines.
  6. 6. BACKGROUND/HISTORY AirAsia was established in 2001 offering the new image of traveling under its opinion “Now Everyone Can Fly”
  7. 7. BACKGROUND/HISTORY AirAsia began with only 2 Boing737-300 series and started its first point-to-point flight.
  8. 8. Boing737-300 series
  9. 9. BACKGROUND/HISTORY It presented low rate of fares as well as services which is necessible.
  10. 10. BACKGROUND/HISTORY AirAsia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries,
  11. 11. BACKGROUND/HISTORY: EXAMPLES OF AWARD & RECOGNITION
  12. 12. EXAMPLES OF AWARD & RECOGNITION  Year 2012 2012 ATW Value Airline of the Year
  13. 13. EXAMPLES OF AWARD & RECOGNITION  Year 2011 Best Asian Low- Cost Carrier By TTG Travel Awards 2011 World’s Best Low Cost Airline Best Low Cost Airline – Asia by Skytrax Fastest Growing Foreign Airline for Cargo by Guangzhou Baiyun International Airport
  14. 14. EXAMPLES OF AWARD & RECOGNITION  Year 2010 2010 Asiamoney’s Best Managed Company Award
  15. 15. VISION  To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.
  16. 16. MISSION To be the best company to work for whereby employees are treated as part of a big family  Create a globally recognized ASEAN brand  To attain the lowest cost so that everyone can fly with AirAsia  Maintain the highest quality product, embracing technology to reduce cost and enhance service levels
  17. 17. VALUES  Safety First  High Aircraft Utilization  Low Fare, No Frills  Streamline Operations  Lean Distribution System  Point to Point Network
  18. 18. STRATEGY
  19. 19. STRATEGY Strategy-Customer Strategy-System Strategy-People System-Customer System-People Customer-People
  20. 20. STRATEGY Strategy-Customer Strategy that AirAsia uses is the low-cost strategy for everyone can fly with AirAsia.
  21. 21. STRATEGY Strategy-System AirAsia uses cost-leadership and aims to reduce cost by using the same series of plane. In addition, flying from point to point can extremely reduce cost of the airline.
  22. 22. STRATEGY Strategy-People AirAsia treats their officers as they are part of the firm. This matches to the direct service developing strategy
  23. 23. System-Customer Target customer of AirAsia don’t expect any extraordinary service, but only the low fare and fast flying one. STRATEGY
  24. 24. online-seat-sparing system
  25. 25. System-People AirAsia sets up the employees’ required attributes to fit to the well-organised system. STRATEGY
  26. 26. Customer-People AirAsia trains officers to solve the problems for the customers immediately when being asked for help. STRATEGY
  27. 27. STRATEGY
  28. 28. MARKETING: MARKETING MIX (4Ps)
  29. 29. MARKETING MIX (4Ps) Product (Service):  Guest Convenience  Frequent flights  Ticketless service  Easy payment channels Price:  Low fare, no frills Place (Distribution):  Internet booking  Reservations and sales offices  Authorized travel agents Promotion:  AirAsia’s BIG Loyalty Programme  AirAsia’s famous flight attendant  Other sale promotions
  30. 30. MARKETING MIX (4Ps) It’s a global loyalty programme where BIG SHOT (member of BIG Loyalty Pragramme) can earn BIG POINT from every transaction and redeem it for FREE FLIGHTS with AirAsia.  AirAsia’s BIG Loyalty Programme
  31. 31. Chindarat Chintanasathien (also known as “Lady Dada”) Lady Dada is one of AirAsia’s promotions planning, as we can see from these Marketing Activities: MARKETING MIX (4Ps)  AirAsia’s famous flight attendant
  32. 32.  Lady Dada takes part as sports commentator at AirAsia Thailand Super League’s opening match. MARKETING MIX (4Ps)
  33. 33.  AirAsia launches two new dishes onboard- “Dada’s grilled chicken with sticky rice” and Chicken Lasagne! MARKETING MIX (4Ps)
  34. 34. MARKETING MIX (4Ps)  AirAsia’s famous flight attendant
  35. 35. MARKETING MIX (4Ps)  Other sale promotions
  36. 36. MARKETING: TARGET MARKET
  37. 37. TARGET MARKET A lot workers or low pay salaries earners who would like to travel often to meet their families especially during special occasions but due to how expensive it was that time, their desire are not fulfilled.
  38. 38. MARKETING: WAYS TAKING TO IDENTIFY THEIR TARGET MARKET
  39. 39. WAYS TAKING TO IDENTIFY THEIR TARGET MARKET  Branding They came with a brand “ Now everyone can fly” These points of contact with their target customer help them to mold their image, which in turn created loyalty from their customers.
  40. 40. WAYS TAKING TO IDENTIFY THEIR TARGET MARKET  Philanthropy "AirAsia's accomplishments and success today is a reflection of the public's trust and faith in the company," said Tony Fernandes (Fernandes), CEO of AirAsia.
  41. 41. WAYS TAKING TO IDENTIFY THEIR TARGET MARKET  Reduced Price Sales They reduced their price to suit their class of customers.
  42. 42. WAYS TAKING TO IDENTIFY THEIR TARGET MARKET  Group Discounts and Offers They have a scheme of group discount and this help to get more target market, especially internet based customers.
  43. 43. WAYS TAKING TO IDENTIFY THEIR TARGET MARKET  Foreign workers and Contractors strategy AirAsia also target most foreign workers from Indonesia, Singapore, Thailand, China, Macau who may not afford the expensive flight home.
  44. 44. MARKETING: SWOT ANALYSIS
  45. 45. SWOT ANALYSIS Strength AirAsia’s brand name is well established in Asia Pacific  AirAsia is the low cost leader in Asia.  Air Asia has a very strong management team with strong links with governments and airline industry leaders.  AirAsia has the excellent utilization of IT. Weakness  Asia does not have its own maintenance, repair and overhaul (MRO) facility.  AirAsia receives a lot complaints from customers on their service. Opportunity “ASEAN Open Skies” agreement has been reached.  There is also some opportunity to partner with other low cost airlines.  The population of Asian middle class will be reaching. Threat  Certain rates and charges are beyond the control of airline operators.  AirAsia’s profit margin is about 30% which has already attracted many competitors.  Customers worry about safety.
  46. 46. Strength AirAsia’s brand name is well established in Asia Pacific  AirAsia is the low cost leader in Asia.  Air Asia has a very strong management team with strong links with governments and airline industry leaders.  AirAsia has the excellent utilization of IT.
  47. 47. Weakness AirAsia receives a lot complaints from customers on their service.  Asia does not have its own maintenance, repair and overhaul (MRO) facility.
  48. 48. What is MRO? Maintenance, Repair and Overhaul (MRO) involves fixing any sort of mechanical,and also includes performing routine actions which keep the device in working order or prevent trouble from arising
  49. 49. Opportunity  There is also some opportunity to partner with other low cost airlines. The population of Asian middle class will be reaching. “ASEAN Open Skies” agreement has been reached.
  50. 50. “ASEAN Open Skies” agreement An international policy concept that calls for the liberalization of the rules and regulations of the international aviation industry—especially commercial aviation—in order to create a free- market environment for the airline industry.
  51. 51. Threat Certain rates and charges are beyond the control of airline operators. Customers worry about safety. AirAsia’s profit margin is about 30% which has already attracted many competitors.
  52. 52. THANK YOU FOR YOUR ATTENTION
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Project includes: - Background/ History - Strategy - Marketing Mix - SWOT Analysis

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