Air Asia Essay

INTRODUCTION Marketing Mix place Asia as a brand concept be similar to or is associated with aid stipulation, the 8Ps method adopt for service marketing may be competently espoused for its advertising. The 8Ps argon harvest-home This refers to the stuff or work to be offered by the company. In the case of channel Asia, their go is about low-priced airline services, thus the need for constant review should be bear in mind in hallow to butt the changing node expectations. Place circularize Asia are considering the issue regarding availability of services needed by the target market, i.e., current and prospective clients. As seen, Air Asia are now doing the online booking and online tag ending in which clients cigaret avail the services of Air Asia. Aside from this, the company was also committed in extending their services both over Asia. Price In terms of price, Air Asia fees were priced competitively and guaranteed at low price. Promotion Air Asias to the mellowe st degree effective ways to transport to the various target groups to stimulate greater awareness, interest and patronage are whateverwhat good but non exceptional.Air Asia are also apply TV advertisement, Internet marketing, and billboard advertising. Physical Evidence In terms of presentation, Air Asias services are exceptional. As seen in their offices and aircraft board, Air Asia are known with their well-dressed staff, logos on office doors/ business centers, letter heads, brochures, complimentary cards, consultancy reports, etc. Process With regards to the process, the business of Air Asia are well management in which makes their business system flawless and node complaints are easily handled. People When it comes to people, Air Asia chooses the best suitable person needed by the company. This means that Air Asia expertly identify the capabilities of a person that will reflect the value of Air Asia services. Public Relations Air Asia stakeholders carefully identify th e various normals that force out impact on Air Asia to which PR communicatings whoremonger be directed. Such publicsinclude individual consultants, clients, big practices, small practices, some otherwise related nonrecreational associations, relevant agencies of the United Nations, financial institutions, etc.AirAsia Key Strategies Safety First Partnering with the worlds most renowned maintenance providers and complying with the world airline operations. uplifted Aircraft Utilization Implementing the regions fastest turnaround time at only 25 minutes, assuring lower costs and gameyer productivity.Low Fare, No Frills Providing guests with the choice of customizing services without compromising on quality and overhauls.Streamline Operations Making sure that processes are as simple as possible. 5.Lean Distribution System Offering a all-embracing and innovative range of distribution channels to make booking and travelling easier.6.Point to Point Network Applying the point-to -point network keeps operation simple and lower costs.Gaps Model PerceivedServiceExpected ServiceCUSTOMERCOMPANYclientGapGap 1Gap 2Gap 3External Communications to CustomersGap 4ServiceDeliveryCustomer-Driven Service Designs and StandardsCompany Perceptions of Consumer Expectations The main aim of any organisation is to reduce the gap between the expected service and the perceived service i.e. the customer gap,which can be reduced by minimising the four providers gap from the company side.Customer Gap ExpectedservicePerceivedserviceCustomer GapAirAsia manages the customer expectation by using the chase strategies Customer Satisfaction Towards service quality in AirAsia Five dimension through which the service quality is measured are the following ways 1.Reliability2.Assurance3.Empathy4.Tangibility5.Responsiveness. In parliamentary law to fulfill the customers needs, the ultimate business organization for Airlines Corporation is the service offered. The contributing factor for the latter is due to the fact that only satisfied customers will get to the intent of repeat purchase (coming back again to avail the service). Additionally, they will tend to share their great experiences and benefits with their network of friends. Many people would argue that price is the most crucial element of concern among the customers. However, the service provided is closelyrelated as the most significant concern in the airlines industry. Continuous improvement in the service provided to the customers should be planned and executed to maximize the business performance.The improvement in CS for airlines industry can be linked with the measurements of service quality much(prenominal) as tangible features (TF), schedule, services provided by ground staff (GS) and flight attendants (FA), online services (OS), food services (FS) and level of passenger satisfaction. According to Brown (1991), SQ is tall(prenominal) to define because of the intangible nature of the service offering . The definition of quality may differ from situation to situation and from person to person. In this study, CS towards SQ was focused on AirAsia Malaysia. By applying the measurements of SQ like TF, schedule, services provided by GS and FS, OS, FS and level of passenger satisfaction, the researchers have set the dimension of SQ that affects the CS. This dimension serves as the most critical dimension for AirAsia. By conducting this study, the information and results have practical implications for AirAsia managers as they can manage company resources to make improvement for CS.Business Model LOW COST CARRIER (LCC) duty MODELThe low cost airlines like AirAsia have changed the definition of airlines that air travel is a luxury and it is only for the upper segment of the population. The key purpose of low cost carriers is to increase their reach and provide the services to a large segment. However, the low cost carriers are now facing some challenges in the market.AirAsia follows t he Low-Cost-Carrier (LCC) business model in the airline industry, which can be characterized as belowLow Cost Carrier (LCC) Business ModelSimple ProductCatering on demand for extra paymentPlanes with narrow seating and only a single classNo seat assignmentNo frequent flyer syllabusmes PositioningNon-business passengers, especially leisure traffic and price-conscious business passengersShort-haul point to point traffic with high frequenciesAggressive marketingSecondary airports tilt with all transport carriers Low Operating CostsLow wagesLow airport feesLow costs for maintenance, cockpit training and standby crews due to undiversified fleetHigh resource productivityShort ground waits due to simple boarding processesNo air freight, no hub services, short cleaning times, and high percentage of online salesMAJOR CHALLENGESIncreasing competition because of increasing number of low cost airline competitors, and aggressive competition against the large or traditional airline companiesCus tomer decrease because of poor economyRising of the fuel pricesHigher labor costInadequate infrastructureRoute and flight usageSafety and security issues of aircraft crash or being attackedWAYS TAKING TO IDENTIFY THEIR TARGET MARKETFor AirAsia, the following are some of element identified that AirAsia used to identify their target market and formed a niche market Branding AirAsia went into intensive General advertisements and other high profile activities, which contributed, to the high offering of their companys image. They came with a brand Now every one can fly These points of contact with their target customer help them to simulate their image, which in turn created loyalty from their customers. Philanthropy Donating money, services, and/or time can build trust and a positive image for your business. Philanthropy contributes both toward your branding efforts and toward your companys internal well-being. AirAsia embark on this to build and attract more customers. In early 200 5, AirAsia Sdn Berhad flights to select Southeast Asian destinations.The airline say that was its way of celebrating the completion of three years of successful flying and of saying thank you to the people for their support. AirAsias accomplishments and success today is a reflection of the publics trust and faith in thecompany, said Tony Fernandes (Fernandes), CEO of AirAsia. (Refer Exhibit I for AirAsias Free Seats Offer)5. With this incentive and philanthropy, more and more customers are attracted to their business New Product/services PipelineNew products in development represent your future sales. AirAsia has extended its services to different part of the world. AirAsia was initially a local company but it has become international with its extension of its services to different part of the world to meet up with their market. AirAsia get feedback from their customers or potential target market, and they designed new services to meet their needs, this practice is ensuring a deman d for their products in the future.Reduced Price SalesThis was one of the bedrock of securing a target market for AirAsia. They reduced their price to suit their class of customers. AirAsia saw a need for a lot of low pay wage citizens who could not afford the money to travel home. With the introduction of their services of low bill of fares, most people can travel home and most people that can only afford to travel once could travel up to three times with their cheaper fares. This Limited time sales encourage customers to act. You likely have customers intending to deal but have not gotten around to it. Holding a reduced price sale will give them incentive to purchase.Group Discounts and Offers.Discounts or other offers to a specific group can help exposure your business to new customers, resulting in a sales surge. AirAsia is a ticketless Airline that allows customers to purchase their ticket online with at a discounted rate. They also have a scheme of group discount and this h elp to get more target market, especially internet ground customers.Foreign workers and Contractors strategyAirAsia also target most foreign workers from Indonesia, Singapore, Thailand, China, Macau who may not afford the expensive flight home and offer them the cheap fare which attracted most of them as would go home very often without paying much.PROMOTION In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing Communication decisions More recently, AirAsia struck an advertising deal with Time, which will have the local mobile phone operators logo painted on one of AirAsias planes. Moreover, there will be more of these, as well as advertisements on pull-down trays.Again it is obvious that AirAsia started offering fares that were unheard of in Malaysia, people were lining up for hours Provider Gap-1 Listen ing Gap CUSTOMERCOMPANYCustomerGapGAP 1Company Perceptions of Consumer ExpectationsPerceived workExpected Services Customer Relationship Management (CRM) In long term, customer relationships should be fostered for AirAsia to maintain competitive advantage and profitability. When planning and implementing CRM application, management is recommended the following approaches1. Customer breakdown mileage-based segmentation is inadequate, rather should focused on value-based and needs-based approaches can guideinvestment decisions and drive greater insight into the needs of highvalue customers. 2. CRM initiative development to differentiate from other competitors, AirAsia should not adopt the fast follower approach to CRM initiative development, i.e. learning from other competitors approach (e.g.installing kiosks for fast check-in). AirAsia should implement CRM program in favor of investing in initiatives with a high return, which respond to the needs and desires of their own custome rs 3. Organizational design and management AirAsia needs to train the employees, empowering them with a complete view of the customer and clearly articulating the employees role in the CRM strategy.Customer Relationship Program (key Functions) Traveling planning Site personalization for on-line customer to create travel plan, bundled services information, flight notification systems, and gate information displays etc. Reservations and ticketing ITA search engines, roving agent check-in, kiosks, internet check-in, and phone check-in etc. Frequently flyer program membership-based or point-based rewarding scheme offering to the applicable customers.Campaign management Email campaigns and promotion.Customer care Web-based self service such as e-ticket booking and reservation, online baggage tracing, RFID baggage tags, internet in lounge, and in air Internet services. Business intelligence Dynamic, updated, multi-dimensional reports that helps management to do analytics in various areas such as customer profiles.AirAsia Brand value Pyramid Employees And Customer Role In Service Encounter 1.Customer Role The Consumer Role of DependenceOne experiential role for some consumers is being dependent period receiving service. The theme of dependence arose during informants discussions of consuming a service in which they have limited knowledge or expertise. The dependent consumer purports under fire(predicate) and uncomfortable in the service setting and needs the service employee to provide guidance and assistance during consumption as illustrated in the following interview excerpts I felt more secure because Im getting a service done that I have no idea about. He do me heart at ease like he was in control, like he knew what was going on. When you dont know anything about something you want to feel that way. You know like a doctor should make you feel that way. Its the same kind of thing.When you buy a tennis racket theres a lot of stuff you want to know. Atfirst I was nervous to read this guy. Hes a pro. What if I ask him a stupid question. Will he think Im an idiot or something. I didnt want to ask him any questions. Then he started talking to me, explaining about the tension of the racket, stuff like that. He made me feel more comfortable right away. It makes you feel more comfortable to ask questions. The Consumer Role of AutonomyIn contrast to the dependent consumer stands the autonomous consumer. The theme of autonomy was revealed most frequently in informants descriptions of shopping in retail stores, where they indicated a desire to be on their own while shopping for clothing. Self service is an essential and desired part of their consumption experience.2.Employee Role The Consumer Role of interdependency The Employee Role of Cooperation The emergent themes of mutuality and cooperation are discussed together to emphasize their close interrelationship. It is difficult to tease apart differences in the meaning of mutuality and coop eration since the two themes decrease together within the interview dialogue. Mutuality represents the consumers role in the service encounter, while cooperation describes the service employees role. The themes of mutuality and cooperation emerged for the most part while informants were describing satisfying service experiences. Consumers received their desired service with the mutual cooperation of the service employee. The service encounter takes on an air of synergy and coordination as exhibited in the following two passages Its satisfying because of the interaction by the waiters. They make the fondue at the table. They explain all the different ingredients that they are putting in there.It makes you feel important since theyre taking the time to talk to you. Its the interaction rather than at a place where they just come and take your order and then come back with your food. (wf, mid 20s) I went to a car stereo place. The person there like totally helped me. I could tell he wa snt just trying to get me to buy the most expensive one. He was looking for what I wanted. He didnt immediately start show me top of the line things. He said, what was it about your old car stereo that you liked? What features were the most important to you? That made me feel comfortable that he was not just trying to make a buck. He was reallylooking to get what I wanted and needed. These passages reveal a sense of care and concern for the consumer by the service employee.The consumer is given a sense of status and importance that results from the service employees treatment. The relationship moves beyond the mere interaction of consumer and service employee to a mutual process of human cooperation and coordination. The roles of mutuality and cooperation may come closest to representing the ideal of service quality. Consumers and service employees understand their roles and work together in prominent and receiving service. Informants satisfying experience arose from interacting w ith employees who were responsive, assuring, and empathetic while providing service.