...days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products/services and markets, is so astonishing and surprising that this concept is still very appropriate and relevant. In this article, I will discuss and analyze AirAsia Airline within the context of this marketing concept described above. 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. ORGANIZATIONAL ANALYSIS Company Background AirAsia Malaysia is second national airline. It was the first successful low cost, ticket-less airline in the Southeast Asian region. On 8 December 2001, Tune Air Sdn Bhd officially acquired 99.25 per cent equity (51.68 million shares) in AirAsia from DRB-Hicom, one of Malaysia’s giant conglomerates. Tune Air Sdn Bhd is the holding company, while AirAsia remains as the operating company. 1 AirAsia currently operates over 100 point-to-point domestic and international flights from its hubs in Kuala Lumpur International Airport ( KLIA) and Senai Airport, Johor Bahru in Malaysia; Bangkok International Airport in Thailand;...
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...PEST and SWOT analysis of AirAsias international business operations 1.1Background AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our philosophy of ‘Now Everyone Can Fly’, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As AirAsia continuously strives to...
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...CONTENT PAGES 1.0 INTRODUCTION…………………………………………………………………2 About the product…………………………………………………….………….2 2.1 Company background…………………………….………………….....7 2.2 Business process and operation…………………..………………….9 2.3 Low cost carrier (lcc) business model……………….………………11 2.4.1 Business model……………………………………………...11 2.4 Competitive Advantages …………………………..…………………..12 2.5 Historical Performance………………………………..……………….13 2.0 ANALYTICAL SWOT ANALYSIS……………………………….……………..18 3.0 PRODUCT ANALYSIS…………………………………………….……………21 4.6 The product Life Cycle (PLC)………………………………....………21 4.0 STRATEGIS AND TACTICS………………………………………..………….24 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 6.7 Market Segmentation………………………………………..………….26 6.8 Target Market Profile……………………………………………………30 6.9 Positioning………………………………………………………….…….32 6.0 MARKETING STRATEGIES AND EVALUATION OF MARKET PROGRAM ELEMENTS………………………………………………………………………..33 Refferences…………………………………………………………………………………………………………….36 1.0 INTRODUCTION AND HISTORY a. Introduction of the product Name of the company: Air Asia Berhad ABOUT THE PRODUCT Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia’s largest low fare, no frills airlines. Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base...
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...currently operates scheduled domestic and international flights to 80 destinations (including subsidiaries routes) across 25 countries and with over 400 daily flights covering Indonesia, Malaysia and Thailand and for international routes mostly from Kuala Lumpur to Australia, Bangladesh, Brunei, Cambodia, China, France, Iran, India, Japan, Laos, Myanmar, New Zealand, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, the United Kingdom and Vietnam. Air Asia’s main hub is at Kuala Lumpur International Airport as well as the head office of the company and its affiliated airlines, Thai Air Asia and Indonesia Air Asia, have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport.In this assignment,we will obtain information about AirAsia more. TASK A: DEFINITION OF MARKETING #1: * “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Source: Chartered Institute of Marketing (CIM) (http://www.studymode.com) DEFINITION OF MARKETING #2: * "Marketing is human activity directed at satisfying needs and wants through exchange process." Source: Philip Kotler (http://www.learnmarketing.net/marketing.html) COMPARISON All two definitions mention specifics of marketing and give an a concept about marketing today. One important thing,...
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...Arts Elixir Mgmt. Arts 51 (2012) 11164-11171 AirAsia Berhad: Strategic analysis of a leading low cost carrier in the Asian region Yasmin Yashodha Taylor’s University Lakeside Campus, No. 1 Jalan Taylor's, 47500 Subang Jaya, Selangor Darul Ehsan, Malaysia. A R TI C L E I N F O Art i c l e h i st ory : Received: 9 July 2012; Received in revised form: 13 October 2012; Accepted: 30 October 2012; K ey w or d s Strategic analysis, Region, Low cost, Extensive. ABSTRACT This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). The study demonstrates the diverse business-level, corporate level and competitive strategies of AirAsia Berhad, played crucial roles in the LCC to successfully penetrate the under-served market segment of the airline industry within the ASEAN region. An in-depth analysis using a wide array of academic resources, relevant financial, legal and management resources and authorized websites, including face-to-face interviews were used to provide a more consequential comprehension on the varied business and international strategies that were implemented by AirAsia Berhad. This research exhibits critical analysis pertaining to the current macro environment of the aviation industry which includes the PESTEL framework and Porter’s Industry Analysis. The competitive environment analysis for AirAsia Berhad is thoroughly scrutinised to examine the driving...
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...Content Contents Marketing Audit 2 External analysis 2 Macroenvironment 2 Microenvironment 5 Internal analysis 9 AirAsia Marketing Mix (4ps) 9 SWOT Analysis 11 Marketing Objectives 17 Marketing strategy 17 Action Programs 25 Financial Budgeting 26 Implementation Control 27 References 31 Marketing Audit External analysis * Macroenvironment Political Environment Government regulates Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval of...
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...AirAsia Berhad (284669-W) 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel : (603) 78809318 Fax : (603) 78806318 E-mail : investorrelations@airasia.com Website : www.airasia.com CONTENTS AirAsia Berhad | annual report 2007 Our Dreams and Aspirations To be the largest low cost airline in Asia serving the 3 billion people who currently are underserved with poor connectivity and high fares. G G 2 4 7 8 12 20 22 24 26 30 32 34 36 40 42 43 44 46 47 48 52 53 54 56 60 62 66 68 72 76 81 82 83 152 156 157 G Our Dreams and Aspirations Corporate Profile Five Year Financial Highlights Share Performance Chairman’s Statement Group Chief Executive Officer’s Report AirAsia’s Strategy for Success Route Network Safety Product Development Go Holiday The Sky is Your Limit Champion of Low Fares AirAsia Roars Into Formula One One AirAsia Our People, Our Pride Investing In Our Future Major Milestones Serving You Better from Our 2nd LCC Terminal Awards & Accolades AirAsia Cares AirAsia Group Corporate Information Board of Directors Directors’ Profile Senior Management Senior Management Profile Managing Risk to Maximise Returns AirAsia Financial Snapshots Statement on Corporate Governance Audit Committee Report Statement on Internal Control Additional Compliance Information Financial Statement Analysis of Shareholdings List of Properties Held Notice of Annual General Meeting Proxy Form To be the best company to work for where employees...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...THE RISE OF TONY FERNANDES AND AIRASIA IN MALAYSIA1 SHAHRIL EASHAK ISMAIL Monash Asia Institute, Monash University, Caulfield East Vic 3145, Australia Email: seism1@student.monash.edu 1 This paper was presented to the 18 Biennial Conference of the Asian Studies Association th of Australia in Adelaide, 5-8 July 2010. It has been peer reviewed via a double referee process and appears on the Conference Proceedings Website by the permission of the author who retains copyright. This paper may be downloaded for fair use under the Copyright Act (1954), its later amendments and other relevant legislation. 2 The Rise of Tony Fernandes and AirAsia in Malaysia This article discusses the emergence of Tony Fernandes and AirAsia. At first, when AirAsia was relaunched as a Low-Cost Carrier (LCC) under the leadership of Fernandes, no one thought the airliner would survive, let alone become a symbol of the liberalisation of the aviation industry in Southeast Asia. Second, Fernandes, a Malaysian Indian of Portuguese Malaccan descent – obviously not a Bumiputra2 - was able to thrive as an entrepreneur in an environment where the government gave top priority to Bumiputra entrepreneurs. These issues are discussed in this paper. Malaysia’s New Economic Policy (NEP) The Malaysian Government has played a significant role in Malaysia’s rapid economic growth. After the independence in August 1957, the economy shifted...
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...Introduction Airasia is an airline started by the Malaysia government conglomerate, DRB-Hicom in 1993 and it’s first operation was carried out on 18 November 1996. The current Airasia country CEO of Malaysia is Aireen Omar. Since 2001, Airasia had been growing rapidly and received recognition award for largest low fare airlines in the Asia. It now served over 60 domestic and international countries with a fleet of 72 aircrafts all airbus A320-200 with 108 routes network. Airasia is well known for its belief ‘Now Everyone Can Fly’ and flies over millions of customers believing in the no frills without hassle, cost effective business concept and high efficiency of air travel which more and more customers choosing Airasia as their favourite choice of air transport. Management Approach From studying the management strategy that AirAsia has been using, the management approach that AirAsia is currently using is the contemporary approach. The contemporary approach can be separate into two different parts; they are the system approach and the contingency approach. Closed systems are not influenced by and do not interact with their environment. In contrast, open system approach is which organization is described as an open system, that it takes inputs from the environment and transforms these resources into outputs that are distributed into the environment. On the other hand, contingency approach states that organizations are different...
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...continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose. The main purpose of the MIS is to give managers feedback about their own performance; top management can monitor the company as a whole. Information displayed by the MIS typically shows "actual" data over against "planned" results and results from a year before; thus it measures progress against goals. AirAsia Berhad is a Malaysian low-cost airline headquartered near Kuala Lumpur, Malaysia. It was the largest airline in Malaysia in fleet size and destinations. AirAsia group operates scheduled domestic and international flights to 100 destinations spanning 22 countries. AirAsia Bhd. engages in the provision of air...
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...EXECUTIVE SUMMARY Tony Fernandes, as the Chief Executive Officer of AirAsia, decided to pursue his dream to start an airline with the following vision: “To be an airline that flies long-hauls with low fares with a corporate culture that is flexible and functional”. AirAsia has achieved its title as “The World Lowest Cost Airline,” and was also one of the world’s most profitable airlines. This report provides an analysis and evaluation of internal and external of the company. Methods of analysis includes of internal and external assessment and financial analysis. SWOT analysis provided in this report will shows the strengths, weaknesses, opportunities and threats of AirAsia. At last of this report, we have provided the recommendations for AirAsia to increase their performance. 1.0 INTRODUCTION 2.1 Company Background Asia’s leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. Air Asia was named the World’s Best Low Cost Airlines in the annual World Airline Survey by Skytrax for five year consecutive years in 2009, 2010, 2011, 2012 and 2013 and has been ranked Top 5 among the most recognized and admired airlines in the Asia Pacific Top 1000 Brands 2008. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes...
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...TABLE OF CONTENT CONTENT | PAGE NUMBER | INTRODUCTION | 2 | TASK A | 3 | TASK B | 4-7 | TASK C | 8-18 | TASK D | 19-25 | CONCLUSION | 26 | RECOMMENDATION | 27-29 | REFFERENCES | 30-31 | INTRODUCTION A REVOLUTIONARY NAME IN AIR TRAVEL REACHES GREATER HEIGHTS (airasia) AirASia is indeed on its way on becoming the dominant player in the airline industry, It is a low cost airline based in Kuala Lumpur, Malaysia who operates scheduled domestic and international flights. The company is Asia’s largest low fare, no frills airlines, a pioneered low cost travelling in Asia. Also the first airline in the region to implement fully ticketless travel and unassigned seats. Their main base is in the Low cost Carrier Terminal(LCCT) at Kuala Lumpur International Airport (KLIA). They also have associates with the airlines Thai Air Asia and Indonesia Air Asia fly from Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia. The airlines established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB – Hicom. On December 2, 2001 the heavily – indebted airlines was purchased by the former Time Warner executive Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit. Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former...
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...AirAsia BERHAD MARKETING PLAN No. | CONTENTS | PAGE | 1.0 | Executive Summary | 1-2 | 2.0 | Introduction | 3 | | 2.1 Background and History of AirAsia | 3-4 | | 2.2 Vision Statement | 5 | | 2.3 Mission Statement | 5 | | 2.4 Objectives | 5 | 3.0 | Environmental Analysis | 6 | | 3.1 PESTEL Analysis | 6 | | 3.1.1 Political Factors | 7-8 | | 3.1.2 Economic Factors | 8-9 | | 3.1.3 Social Factors | 9-11 | | 3.1.4 Technological Factors | 11 | | 3.1.5 Environmental Factors | 11-12 | | 3.2 PORTER's 5 Forces Model Analysis | 12 | | 3.2.1 Threats of New Entrants | 12-13 | | 3.2.2 Threats of Substitute | 13-14 | | 3.2.3 Bargaining Power of Buyers | 14-15 | | 3.2.4 Bargaining Power of Supplier | 15 | | 3.2.5 Competitive Rivalry | 16 | 4.0 | SWOT Analysis | 17-18 | | 4.1 Strengths | 19-27 | | 4.2 Weaknesses | 28-31 | | 4.3 Opportunities | 31-34 | | 4.4 Threats | 34-36 | 5.0 | Marketing Objectives | 37-46 | 6.0 | Marketing Strategy | 47 | | 6.1 Target Market | 48 | | 6.1.1 Behavioral Factors | 48 | | 6.1.2 Demographic Factors | 49-50 | | 6.1.3 Psychographic Factors | 50-51 | | 6.2 Marketing Mix | 52 | | 6.2.1 Product | 52-54 | | 6.2.2 Price | 54-55 | | 6.2.3 Place | 55-57 | | 6.2.4 Promotion | 57 | | 6.2.5 People | 58 | | 6.2.6 Performance | 58 | ...
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...THE BEGINNING The story of AirAsia began after Tony Fernandes observed and was impressed with the way that easyJet was run. EasyJet is a London-based low cost airline and he, decided to further explore the mechanics and intricacies of the airline operations first hand. It has been his childhood dream to run an airline someday. So, after spending two days at easyJet headquarters in Luton airport, talking to staff and passengers and learning first hand how the airline operates, he had a vision and where he believed that a low cost airline would be accepted and can be operated successfully in the Southeast Asian region. Therefore, Tony Fernandes, who’s started his career as a music industry executive at Virgin Records and Time Warner Music, resigned and returned to his homeland, Malaysia. As Tony did not have any experience in running an airline, nor had any capital to start one, he raised money by mortgaging his house and using up his savings. He also brought-in three of his associates that is Datuk Pahamin A. Rajab, Abdul Aziz Abu Bakar and Kamarudin Meranun to start a low cost airline in Malaysia. Tony with the three as mentioned formed a partnership and set up Tune Air Sdn Bhd and bought AirAsia for a token sum of RM1.00 with RM40 million worth of debts. AirAsia was remodeled into a low cost carrier and by January 2002, their vision to make air travel more affordable for Malaysians had taken off. Tony turned the company around, producing a profit in 2002 and launching...
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