...given rise to many airline companies to provide the best service and safety to an individual to make his journey a memorable one. Airline companies are constantly upgrading with technology and other services for competing in this ever-growing airline industry. Malaysian airlines is one of the prestigious passenger airline carrier owned and run by the government of Malaysia also known as MAS in short. Malaysian airlines operates in more than 60 destinations around the world. Product and Experience Analysis: Malaysia Airways is one of the mid cost airline company and operates from the homeland base Kuala Lumpur. Malaysian airlines has established itself in the South East Asia region and travelling around the world. Malaysian airlines is one of the few airlines to be awarded with the 5 star airline status by Skytrax. Malaysian airlines also operates 2 airline subsidiaries Firefly and MASwings which operate internally within Malaysia. Other services offered by MAS include things like architectural operation, resort management, catering, digital booking companies, transportation and warehousing companies. MAS is an international carrier operating in 117 domestic destinations and 115 international routes in six continents. MAS offers 3 different classes first, business and economy class to suit the customer needs and compared to other 5 star airlines the prices offered by Malaysian airlines are way cheaper and they are highly competing with the other low cost airlines and offer exceptional...
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...different industries, Starbucks Coffee, southwest Airlines and Wendy’s Old Fashion Hamburgers. In addition to the SWOT analysis there will be information regarding the company’s competitive advantage, strategies used, how value is created by each company along with the measurements guidelines used to verify strategic measurements SWOT Analysis: Starbucks Coffee, Southwest Airlines & Wendy’s Starbucks Coffee, Southwest Airlines, and Wendy’s operate in three different industries, something each company has in common is utilizing as a tool the internal and external environments based on the SWOT analysis. Starbucks Coffee began as a single store in Seattle; now, the number one coffee chain in the world located in over 62 countries with 18,000 stores. In order for Starbucks to have its current success and continued success a SWOT analysis breaks down the favorable and unfavorable factors to determine the appropriate strategy to stay on top in the premiere coffee industry. The Strengths of Starbucks Coffee to name a few are the experience the customers have with Starbucks, a brand widely recognized valued over $4 billion along with being the largest coffee chain globally. Starbucks Weaknesses are expensive pricing of its products in addition to the company’s profits is dependent on coffee beans and the price of coffee beans. Opportunities for Starbucks are retail operations expansion and, increase product offerings. Last, the...
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...JetBlue is among the budget airline in the United States. This low cost airline was founded by David Neeleman and it is currently held by the president and CEO David Burger. Its main headquarter locates at Long Island City, New York. The main hub base is in JFK International Airport (Brizek, n.d.). They serve passengers in 84 destinations from the states and other places, such as Mexico, Puerto Rico, the Bermuda, and Countries from Latin America. Unlike any traditional airlines, the company of the blue follow has a rich history and unique marketing strategies while following the trends of travelers. The founder, David Neeleman, discovered the company in Delaware in late summer 1998. However, it was later launched a year later under a different name as NewAir. The company consisted of former Southwest Airlines employees, including Neeleman, as executives (Brizek, n.d.). Their initial philosophy was following the root of Southwest Airlines’ budget status to keep up with the travelers’ demand. However, to set off from other airline industries, JetBlue offered products that attracted to customers that are consider amenities; such as new aircrafts, and leather seats. One unique product that was new to the airline market was live inflight television. JetBlue was the first commercial airline to bring inflight television. JetBlue has a habit of catching up with the marketing trend on the airlines industry. However they would often join the bandwagon in a different approach. Despite...
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...Ltd (Comair) operated as South Africa's first private airline since 14 July 1946. On 27 October 1996 a British Airways franchise agreement came into effect and Comair became known as British Airways Comair (BA). Comair remained a South African controlled company and in 1998 was listed on the Johannesburg Securities Exchange (JSE). In 1999 the airline realised that there was a growing need for affordable air travel as the market had become seriously price sensitive. The economy had weakened at the time and travelling expenses had been cut.6 This realisation led to the launch of kulula.com in July 2001 as a separately branded Comair initiative: a South African low-cost, no-frills airline modelled on the successful European low-cost airline, easyJet. Kulula.com offered return flights between Johannesburg and Cape Town for as little as R800, three times a day, and received 2 000 bookings on its first day of operation. The product offering was simple: easy online booking directly with the airline and affordable fares. At the same time, frills were kept to a minimum: tickets could not be changed once they had been purchased7; there was no pre-assigned seating8, frequent flyer programme or business-class; and food and drink were sold on board rather than distributed for free.9 By stripping costs out of kulula.com's operations and business systems, the airline was able to offer up to a 40% discount on a conventional airline ticket. Research had found strong evidence to suggest...
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...American Airlines Inc., formerly known as American Airways, is a US airline owned by AMR Corporation. As one of the leading airlines in the United States, their available flight routes are both domestic and international. In February 2013, American Airlines and US Airways announced plans to merge, which would create the largest airline in the world. The combined airline is set to carry the American Airlines name and branding; the new publicly traded holding company will be named American Airlines Group Inc (American Airlines, Inc, 2008). With the merging of the airlines, American Airlines is looking to the future for continued profitability and to continue success with customer satisfaction. Description of New Service American Airlines, Inc. will introduce the AirPad and also the AirPad, Jr. The new product lines will be available on all flights. The rentals are free for Business Class travelers and those in coach will be charged a $15 or $10 if they reserve in advance. The AirPad product lines will have access to a large selection of movies, television shows, interactive and kid friendly games. They will also offer a variety of magazines and books that can be rented during the flight times. The AirPad would also make it possible to alert the flight attendants and request blankets, pillows, drinks, and snacks with the swipe of a button. By incorporating the AirPad product lines into traveling experiences, American Airlines, Inc. is targeting the popular technology products to enhance...
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...Understanding Marketing Mix in Air Asia Airline Bhd Author: Onwutalobi, Anthony-Claret CSN: 31217-2008-22-15 EXECUTIVE SUMMARY The term "marketing mix" became popularized after Neil H. Borden published his 1964 article titled, “The Concept of the Marketing Mix”. Since then, this terminology has become a common knowledge in the business world and has played a pivotal role in shaping most companies’ business processes and models. However, most people argued that this framework was particularly useful in the early 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...
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...accumulation, to determine the extent of the services and products that are offered by the organisation, and the primary environmental commitment towards nation and the aviation industry, are also important aspects of the company's strategic direction and focus. Mission Statement Indigo airlines aims to become the number one leader in the low cost airline industry of India, offering the best service and ensuring highest standards of quality at low cost to the customer. Goals and Objectives Non- Financial Indigo airlines aim to attain the utmost rank of customer satisfaction in terms of the service and products offered by the firm. The management ensures that the highest standards of quality are in place at every level to ensure 100% customer satisfaction. Financial The financial goal for the firm is to ensure highest rate of return for the investors and the stakeholders and increasing the profit by following steps. Effective costing of products Cost cutting Increasing the market share by 25% Core Competencies / Competitive Advantage The strengths for indigo airline in the current market situation are the price tag of the tickets and the fact that it has been awarded many times in 2009 as one of the best low cost airlines. The recession was extreme and most of the people who were using services from jet airways and kingfisher came down to low cost airlines (financial express).The market almost doubled for the low cost airlines as in the times of recession companies wanted to...
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...Understanding Marketing Mix in Air Asia Airline Bhd Author: Onwutalobi, Anthony-Claret CSN: 31217-2008-22-15 EXECUTIVE SUMMARY The term "marketing mix" became popularized after Neil H. Borden published his 1964 article titled, “The Concept of the Marketing Mix”. Since then, this terminology has become a common knowledge in the business world and has played a pivotal role in shaping most companies’ business processes and models. However, most people argued that this framework was particularly useful in the early 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...
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...code-sharing and collaboration in terms of coordinated pricing, sales, and scheduling and benefit-sharing model which aims to jointly deploy one or more resource combinations. An in-depth analysis has been done on what are the internal and external factors that influence Qantas to form an alliance with Emirates. These factors are: Deregulation of open skies creating economic environment and open equal opportunities for all air carriers Excessive capacity, fuel cost, foreign currency exposure and threat of new entrants. Changes in customer taste and destinations, power of customers and growth of airlines alliances. Heavy investments in railways and telecommunication tools Consumer protection and passenger rights Growing percentage of global emission Airport slots allocations Similarity of resources and services such as Singapore Airlines and Cathay Pacific Improving services for better price Improving power of negotiation between the alliance and suppliers During the analysis of the case, a number of opportunities were found and related with the internal and external forces where these opportunities were viewed as factors to generate a competitive advantage in the market: Forming a 10-year partnership with Emirates to gain access with their resources and collaborate to see what it is capable of. These resources are usually scare, no direct substitute, and...
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...Running head: CLASSIC AIRLINES MARKETING SOLUTION Classic Airlines Marketing Solution Marketing MKT/571 August 15, 2011 Classic Airlines Marketing Solution Classic Airline the world’s fifth largest airlines, has a fleet of more than 375 jets which serve 240 cities with over 2,300. Flights daily (University of Phoenix 2011). The company is profitable however, there has been a decline in the loyalty rewards program as well as a decrease in share prices. The management team is working to identify a marketing solution and strategy that will provide a win back solution. This paper will perform the nine step problem solving method as it relates to Classic Airlines scenario. Framing the problem: The primary problem for Classic Airlines is a decline in return customers especially the loyalty programs customer base. This problem is due to the cost it takes to lose a customer is greater than the cost to maintain customers in that the cost of marketing to new customers is extensive. According to the text, it can cost a company approximately 5 times more to acquire new customers than to retain the existing customers. (Kotler & Keller 2006). Describe end state and goals: The end state would be for Classic Airlines to win back those loyal customers who currently make up 19% of the decline in the company. Acquiring and gaining new loyal customers at a rate of no less than 15% of the current state. The goals that are attainable and measurable for this second stage will be those...
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...1.0 Introduction Air New Zealand is the dominant flagship airline in New Zealand. At present the airline more or less controls the majority of the New Zealand domestic market. The airline also operates on several global international routes. Since Ralph Norris was appointed as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. After the business transformation program, the structural changes in the marketplace made a new direction indispensable and Air New Zealand is turning to align its route and service standards to customer needs from inflexible service offerings. Meanwhile, Air New Zealand is developing from a full service airline into the direction of a value-based airline which involves lower fares and more customers. Reduced revenues (per customer) should be off- set by lower operating costs mainly achieved by simplification of product bundles and services. (Airline to put profit on menu.UBS Warburg Conference, 2003, p.11 ) The following table gives an overview of the key aspects of Air New Zealand is facing after the new strategic direction launched, as we can seen as SWOT analysis. Figure 1 SWOT analysis Strengths-Well established system and strong operational network Marketing programs.-One of the earliest members of the Star Alliance, it flying 25 domestic and 23 international destinations and covering 16 countries approached at different cities in Asia, Pacific, North America and Europe...
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...CLASSIC AIRLINES Problem Solution: Classic Airlines Problem Solution: Classic Airlines Classic Airlines has established themselves as the fifth largest airline within their 25 years of existence. Recently they have experienced a 10% decrease in share prices and are faced with a challenge of expanding their frequent flier program using methods that will demonstrate a return on the investment. Classic Airlines will first take a dive into the environmental factors of social, economic, technological, competitive and regulatory forces in order to determine the right problem. (Kerin 2005) “These five forces may sometimes serve as accelerators or brakes on marketing, sometimes expanding an organization’s marketing opportunities and other times restrict them.” Ultimately Classic Airlines will reach the point where they value their customer’s needs. Airlines will always be in demand; therefore it is imperative Classic Airlines develop a marketing plan that will ultimately keep the airlines ahead of the competition. Describe the Situation Issue and Opportunity Identification Classic Airlines has experienced a 10% decrease in share prices over the past year, along with a 19% decrease in Classic Rewards members, and 21% decrease in flights amongst remaining members. Classic Airlines Employees are experiencing low morale issues from the media input of the state of Classic Airlines. Although the Customer Relationship Management (CRM) system was inputted at Classic Airlines, Renee...
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...Emirate Airlines – Case study Introduction Airlines in today's global marketplace are faced with increased competition and shrinking profit margins. It is very important to attract and retain customers which can significantly increase EK share of the market and expand business opportunities. By doing this, the airline should understand consumer behavior, which is to understand the consumers’ mind and discover the challenges and to figure out the potential customers to maintain/develop the relationship and reinforce a consistent service provided. Marslow’s Hierarchy of the travel needs Maslow's hierarchy is to explain the needs of customers, it represents by the shape of a pyramid with the largest, most fundamental levels of needs at the bottom and the need for self-actualization at the top. Physiological: Consumers have needs and wants. Consumer needs to travel because they want to relax and gain an enjoyable experience. If they travel because only they need, they will not consider selecting the different carriers, class of travel etc. such as Cathay Pacific, Air France, business class or economy class. Safety : Once the needs/wants are identified, consumer will concern the safety for flying with the aeroplanes and afraid they will lose their life for this business trip/leisure trip. They will select the carrier based on the age of fleet, accidents record, corporate image of the carrier etc. If consumer fear of travelling because of safety, it is hard to move on the...
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...characterizing an entrepreneur’s business model. Without a relatively consistent approach, it will be difficult to determine whether standard model types exist, the conditions that make a particular model appropriate, the ways in which models interact with organizational variables (e.g., management styles, structures, cultures), and other critical questions. To be of value, such a framework should have certain qualities. Chief among these are the need for it to be reasonably simple, logical and measurable, while at the same time being comprehensive and operationally meaningful. If the purpose is to model a viable business, then what is the essence of a viable business? For simplicity, let us assume that it is an entity that makes available a product or service to a customer in a manner that allows it to charge more than its expenses while distinguishing itself from others who sell the same thing, in the process generating an acceptable return on investment. Inputs are translated into outputs, and this is accomplished in a way that makes economic sense and is sustainable. It would appear that, in seeking generalizability, most of the extant perspectives attempt to oversimplify a firm’s business model. The challenge is to produce a framework that is applicable to firms in general, but that serves the needs of the individual entrepreneur and the unique combinations behind his/her venture that make it sustainable. Accordingly, a framework is proposed that consists of three levels, or sets...
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...Product The product of AirAsia are not only offering an air transportation service to convey customer from origin to destination, the service of airline has been started when the customer consumed, such as ticket booking, payment, check in. Compared with the traditional consumer offerings, flight course service, as the most important product of airline, is invisible, intangible and cannot be touched. Customer cannot experience truly the various services providing by airline before boarding, flight personnel and meal services. There is a common ground between airlines and other service industries, the product cannot be stocked and reselling, service perishability is particular prominence comparing with other service industry, one hour no producing is the waste, the idle plane without producing loss more than 10,000 US dollars per hour. Price “Now everyone can fly” according from this AirAsia slogan we can see that low price is the biggest selling point of AirAsia. Customers select AirAsia when the first choice was made due to its price competitive advantage. Have a competitive advantage of low prices not only help develop mew markets, also can expand the existing market demand. Link to SWOT analysis method, the price is the competitive advantage of AirAsia. The main competitor MAS raised price when the price of global crude petroleum increased in 2008, while the AirAsia promised to maintain fares in order to ensure this decisive competitive advantage. They successfully used...
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