The marketing strategy 4ps of air asia
How did airasia become a market leader what marketing concepts were used well
Base on this, I will work around the marketing mix employed by AirAsia to reach its target market. The demographics of AirAsia sees it appealing to a wide selection of income groups. Although many new LCCs have emerged since the inception of AirAsia, at the financial year of , AirAsia was the only LCC in Asia that was making profits for 5 years consecutively and obtained the lowest cost on all measures compared to other global LCCs. The airline industry in Malaysia is fairly concentrated with large incumbents such as Malaysian Airlines and AirAsia dominating the market. The more they transport, they more they profit. A customer who uses the service of a competitor will lose the benefits of the loyalty scheme, which is equivalent to the incurred switching cost Datamonitor, It is owned by the government. Image: Wikimedia Below is the pricing strategy in AirAsia marketing strategy: Price: Following is the distribution strategy of AirAsia: AirAsia stands for low pricing and a no frills policy. As maximising revenue is the core objective of AirAsia, the organization recognised that passenger seat revenue was not sufficient to sustain and grow the business. Mobile centre: AirAsia has launched booking services via mobile phone or landlines in order to provide customer efficiency when it comes to ticket booking and check-ins. Price sensitivity serves to increase buyer power. They also ensure that the operations are carried out efficiently as well as the safety and security of passengers is heeded. Over the years, it has enhanced its payment service options through efficient payment channels and facilities like ticketless service. This enables the carrier to optimize its revenue from passenger seat sales while continuously offering fares that are lower than its competitors on similar routes. Today, AirAsia is popular for its cost cutting techniques, essentially by the use of same series of planes.
One of such includes minimal technical staff workers and Overdependence on few key staff AirAsia would need an enormous number of technical professionals, especially in the implementation of their internet booking and distributors. Export markets offering great potential Distribution channels seeking new products Scope to diversify into related market segments Threats Even though AirAsia is currently on the peaks of success, they would be careful and not nonchalant to the threats they are bound to encounter.
AirAsia also would need to have high technological equipments, and connections to sustain and serve such a huge network of company subsidiaries and affiliates, as appropriate.
Elliot Media organizations often have to conduct advertising shooting for their clients at international locations. Sociocultural Environment demographics The sociocultural environment of AirAsia sees it taking many things into account while serving its customers.
Air asia ceo
Their delays of flight or calling their customer line to confirm booking shows that their system is not yet robust to handle booking efficiently this might cause a lot of customer change their mind. The carrier utilises such opportunities to promote and increase its brand awareness without incurring additional sales and marketing expenses. In addition to the team of professionals, AirAsia has developed a credible record of accomplishment over five years of operation, which gives them the acceptance and trustworthiness. He administers the business in Indonesia as well as tries to enhance the growth of Indonesia AirAsia. One of such includes minimal technical staff workers and Overdependence on few key staff AirAsia would need an enormous number of technical professionals, especially in the implementation of their internet booking and distributors. They engage in direct service development strategy simply by treating them as though they are an indispensable part of the organization. AirAsias expansion into most of South East Asia also shows that they are determined to compete with the other fleets as part of their route strategy. This shabby offering could damage their image and services as customers may seek for alternatives. As such, to entice consumers towards domestic air travel, AirAsia should continue to sustain its low air fares and reduce travel time, which includes the time to check in, compared to rail travels.
A related concept of marketing is marketing mix. Identifying the target market and highlighting some of the marketing mix employed to attract the chosen market Finally, I will discuss the threats to the long-term success of the airline with reference to the current marketing mix in order to overcome certain service shortcomings.
About AirAsia: Headquartered in Kuala Lumpur with its main low cost carrier terminal located at the Kuala Lumpur International Airport, AirAsia has risen above objections to emerge as one of the leading low cost carriers in the entire world.
Image: Wikimedia Below is the pricing strategy in AirAsia marketing strategy: Price: Following is the distribution strategy of AirAsia: AirAsia stands for low pricing and a no frills policy. Modeled on successful low fare airlines such as the U.
Internet booking Another is infrastructure. The corporate runs its operations and sales its merchandise in 61 countries with approx , employees in all over the globe SAMSUNG, Discounts or other offers to a specific group can help exposure your business to new customers, resulting in a sales surge. The formation of Vietjet AirAsia makes Vietnam AirAsias fourth country base, following Malaysia, Thailand and Indonesia and would enable the airline to achieve network size economies through code sharing, attain scale economies in the purchase of fuel and aircraft Datamonitor, AirAsia is a ticketless Airline that allows customers to purchase their ticket online with at a discounted rate. AirAsia believes investment in the latest technology and efficient use of aircraft which are more fuel efficient increases substantial savings with group-wide operations. However, there is a strong degree of rivalry in this industry. And with the generous amount of diversification in their hotel chain, alternative cost-reduction options, and publicity stunts, consumers were more than willing to give AirAsia the attention it wanted. Analyzing AirAsia in Business Competition Era, Strengths The following are the strengths identified by Air Asia: Low cost operation Less management level, effective, focused and aggressive management Simple proven business model that consistently delivers the lowest fares Penetrate and stimulate to potential markets Multi-skilled employees means competent and inducement workforce Weakness The following are the weakness identified by Air Asia: Service resource is limited by lower costs Limited human resources could not handle irregular situation Government interference and regulation on airport deals and passenger compensation Non-central location of secondary airports Brand is essential for market position and developing it is always a challenge Heavy dependency on outsourcing Constant competition with other low cost carriers as well as traditional full service airlines. In order to profit from the routes, they will need to be competitive in terms of two way routes rather than just one way routes. This conducive AirAsia culture is everywhere in their operations including the management, guests services, ground and flight operations. AirAsia believes that its ability to generate publicity as well as marketing and public relations activities have been successful in establishing a high level of brand awareness within the ASEAN region as well as new markets such as India and China. The call centre now takes an average of 6, calls daily.
AirAsia has extended its services to different part of the world. Parallel to the society in Malaysia, AirAsias low cost concept is well accepted since the society is always searching for cheaper alternatives when it comes to travelling via air. Hence, the buzz is to create as many products and services that are circled around efficiency and convenience, such as, online bookings, check-ins, pre-ordered food, kiosks, mobile detailing.
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