Airasia marketing strategy download

AirAsia is already trying to achieve that by expanding their facilities to hotel bookings, tour packages, etc to try and gain some competitive edge along with diversifying their product portfolio. Some more of these improvement areas can be found through its SWOT analysis. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position.

Air Asia is smartly using its social media in building a direct relationship with its customers. They have official handles on all major platforms but for the purposes of this segment, we shall take a look at the main 3, which are Instagram, Twitter, and Facebook.

Overall AirAsia has a pretty good social media presence that communicates its services and engages with the customers. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. Given the current situation, in-flight experience, especially hygiene matters a lot to customers so AirAsia should heavily market its hospitality and put customers at ease in availing their services. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry.

Liked our work? Interested in learning more? Thank you for reading this case study. We hope you found what you were looking for. If you did, be sure to share, comment, and let us know! Promotion is the publicizing of a product, organization or venture to increase sales or public awareness. Promotion includes 4 different categories which are advertising, sales promotion, personal selling, and publicity. This promotion offers lower flight rates to selected destinations such as Kuala Lumpur, Bali and Bangkok.

Air Asia has also been advertising their company through various social media platforms such as Instagram and Facebook. Their advertisements has always been very attractive and eye-catching by using red and puttig. Competitors of AirAsia include other operating low-cost carriers such as Scoot, Jetstar. Malindo Air competes for the same group of consumers, specifically those that are price-sensitive. LCCs usually operate across the same market and offer similar prices.

As such, AirAsia would have to ensure that they maintain a competitive edge over other existing LCCs since the selling point is affordability.

Cost is another factor that affects LCCs. Security charges and landing charges are additional costs that all airlines are subjected to pay to be able to land or take off in an airport.

These become a threat to airlines, especially LCCs as they mainly tap on cost reduction thus these extra charges may hinder their cost and affect their profits. Low-cost carriers will then have to compete and implement strategies to minimize the impact of additional charges to keep costs low so they can offer low prices to customers. There are many types of travel purpose and duration, short and long, and as there are many countries around the world, the demand to travel to more exotic places is also increasing.

When the demand for normal travel destinations decreases, airlines will have to change their approach and allow more flights to a new and interesting destination. If an airline fails to do so, they may make a loss as potential consumers will choose another airline that offers what they want. Consumers behavior differs based on different market segments such as family, an individual, retirees and many others.

It is difficult for an airline to meet the demand for these consumers. In this case, they are missing out on profiting off business travelers.

This means that they are not as stable when compared to Business travelers and lose out on potential revenue. There has been an increase in oil price and this is an opportunity for AirAsia.

Compared to other carriers, low-cost carriers like Air Asia require less oil to operate. This is because high-cost carriers are usually larger than low-cost carriers. They can use their lower cost as an advantage and price their tickets strategically to attract more price-sensitive customers.

This is an opportunity for all low-cost carriers so, with the right planning and pricing, Air Asia will be able to have a competitive edge over the other low-cost carriers.

Data is the biggest asset retailers own hence it is important that they make full use of it by thoroughly analyzing them to use it to their advantage. Sales of Air Asia Airlines grew tremendously in every country in which they were available. It is during the growth phase that the product will begin to recover its development and launch costs and slowly move through the break — even mark to begin to make a profit for the organization. During the growth stage of a new market or a new product, competitor will also enter the market with similar products or services and competition will become increasingly evident.

The characteristics of products or services in the growth phase are Gain market share instead of create awareness and promote trial as the objective, increasing the sales, moving from the non-profits into profit, the competition is growing. Revenue pays off the development costs. It will begin to make rival product or service into problem. As the market still growing, revenues can be expected to increase.

The market mix elements during in the Growth phase are as follows. Product: Product extension and minor modification. Price: Penetration Pricing for Market Share. Advertising: Heavy media even not as heavy as introduction phase, to build awareness and create brand. Sales promotion: Reduce as demand increases instead of intensive sales promotions to encourage trial likes introduction phase. Distribution: Move from selective distribution to intensive distribution. The strategic plan of a company will indicate where the organization is going and how different functions fit into the plan.

Tactics are the smaller scale actions that are taken to realize the objectives of the strategy. Gaining 40 percent market share for a product in order to boost profits is a strategy. Lowering the price of that product for a time in order to stimulate sales is a tactic. The Internet provides the most cost — effective distribution channel available. In order for AirAsia to maintain its profitability and ensure its stays in line with cost leadership business model, AirAsia has to offer more routes and products in its portfolio.

More routes and fleets mean more customers and potential ancillary income, in ancillary income per guest is RM 44 AirAsia AirAsia Online Marketing Social media is a very powerful tool, in a recent survey by TNS, Malaysians have the most number of friends in social networking websites and spends 9 hours a weekly. The Star, Nielsen, AirAsia should continue to carry its promotions and focus even more on online marketing and selling.

However, AirAsia should also be mindful as negative comments and bad customer experience will also be posted on the same platform and it is visible to everybody. AirAsia has to be tactful in handling these situations. Increase Product Offering By partnering with Expedia, AirAsia adds value to its services by easing travellers to book accommodation and ground arrangements.

AirAsia should work with more partners to obtain a better price so that its customer will be able to get better deals. Agoda, Booking. As for tour packages and ground arrangements, AirAsia should form collaboration with local partners, for example Reliance and Berjaya Holidays.

Income indicates the capability of the consumer to travel with AirAsia as consumers from different income groups are attracted to different airlines.

This is because low-income and middle- income earners generally have lesser disposable income than high-income earners, hence are unlikely to be capable of purchasing airline tickets from FSCs such as MAS as their tickets are more expensive. For low-income and middle-income earners, their main need of an airline ticket is simply to travel from one destination to another. Therefore, the pricing of airline tickets is a vital factor that influences purchasing behaviours.

Statistics have indicated that consumers have increased their expenditure in air travel due to the availability of more affordable domestic and regional flights from LCCs Consumer Lifestyles — Malaysia, Social Class AirAsia may have segmented their market into lower, middle and upper social classes on the basis of this variable because different social classes tend to have different purchasing behaviours, brand preferences and expectations Schiffman et al.

Moreover, upper social class consumers would tend to have a negative perception about the image of LCCs as a provider of less comfortable services. Usage Rate Usage rate is one of the variables under the user-related segmentation which AirAsia can use to segment their market and is divided into low, moderate and high usage rates Schiffman et al. For example, consumers [Segment 4] who travel frequently for business meetings would have a high usage rate of air travel as they are required to travel to different destinations frequently.

Consumers with low usage rates are mostly from the low-income category who can only afford to travel at most twice a year depending on the destination. This is because they have less disposable income compared to high-income earners.

However, if price levels are affordable, then low-income earners [Segment 1] would be able to travel more often with LCCs. Time As for the user-situation base, AirAsia is able to use time as one of their variables to divide the market Schiffman et al.

The time variable is categorized into leisure and business. Consumers with different purposes of travelling have different priorities. Besides that, the switching costs are low in airlines industries. This is because the brand is not a major consideration to buyers; they will compare the lowest fares among the airline Yashodha, Various airlines are competing between the similar services and seats Dhamija, Comparison of airfares by among airline companies by buyers can be done through websites like Expedia and Cheap flights.

Therefore, the bargaining power of buyers is high. The other supplier such as food supplier will supply base on the market condition, they can not increase the price as it will affect the long term business cooperation. Besides that, the switching cost is high because the supply of aircrafts, fuel and sufficient workforce are pertinent to the airline industry. As such, the bargaining power of suppliers is high. However, in terms of time and convenience, the planes are the fastest among all and might surpass all transportation services.

Consumers may opt for rail than bus services when travelling between Malaysia and Singapore which offered lower fares and aware of the environmental impact of using air travel. Therefore, the threat of substitutes for airlines is moderate. Furthermore, because of high exit barriers, LCCs are forced to expand their business with providing services like hotel booking, cabs and other package deals.

Therefore, the rivalry among competitors is high. Airasia is able to provide affordable airfares to consumers by hedging for low fuel price, cost savings from single aircraft operations, fuel and energy consumption management systems. This capability is not exclusive and can be easily achieved by other competitors. Therefore, it serves as competitive parity. Page 11 of 29 Besides that, physical and organization resources in tangible wise like group fleet size of Airbus-A in and owns subsidiaries in Thailand, Indonesia, Philippines, India and Japan AirAsia Berhad, Annual Report The way of their management is rare but still can easily imitate by competitors which lead temporary competitive advantage to AirAsia.

Airasia has been very creative in creating their own company branding and images which successfully influenced their consumers. In addition, they have been very focus in marketing their brands through all social medias available in order to reach all potentials buyers.

This capability is hard to be imitated by competitors so that AirAsia can sustain competitive advantage. Page 12 of 29 4. SWOT Internal: 1. AirAsia is able to provide lower airfares to obtain large Strengths amount of passenger loads by reducing the expensive in- flight services, selling tickets online directly to passengers and minimizing labour, facilities and overhead costs Zhu. AirAsia combines Malaysia, Indonesia and Philippines units as OneAirAsia, which can share a single cost structure, brings prodigious benefits in the scale of economies and achieve a superior position in the markets Idris, A.

Tony Fernandes focused in employee value and join every airline workers to accomplish the share goals. AirAsia become the market leader in by owning 80 aircrafts while Malindo owns 43 aircrafts Airfeets. Internal: 1. The rate of customer complaints on Airasia service are quite high Complaint board, Airasia heavily reliance on online sales which exposed to a risk of system disruption Zhu.

Page 13 of 29 External: 1. The engine of Aneo aircraft are capable to improve fuel efficiency and seat capacity AirAsia Berhad, Annual Report External: Threats 1. Page 14 of 29 The strength of AirAsia is that they are able to provide low cost airfares by reducing management and operation cost. They make good used of technology for them to be able to reach their buyers directly through website which helps in reducing labour cost.

This has been their trademark of the company. In the contrary, the major weakness of AirAsia is they are too relying on online sales as there will be a risk of system disruption.