air asia target market

Airasia has corporate with Yahoo Mobile whereby the organization allows Airasia mobile website to put the banner advertisement on the Yahoo mobile homepage, yahoo mail and yahoo search. For the community, they are able to get the latest information about the campaign that launched by Airasia through the social media. In order to do that, Airasia is practicing the meritocracy culture whereby the employees hired not based on the age and ethnic. TARGET MARKET ANALYSIS - TARGET MARKET ANALYSIS AirAsia may use segment bases such as demographics socio-cultural and user related segmentations to, 2 out of 2 people found this document helpful, AirAsia may use segment bases such as demographics, socio-cultural and user, related segmentations to segment their market. (Flightglobal, 2009), In 2010, Malaysia Government had introduced one government policy which is “10 Malaysia Plan” to the public in order to unleash the growth of economic. The company posted its revenues and net income for the first three quarters in the fiscal year 2016 at RM 5.01 billion and RM 1.574 billion respectively. Segmentation AirAsia target market segment consist of three different but overlapping segments that were segmented according to Geographic Segmentation, Demographic Segmentation and Psychographic Segmentation. The Asia Pacific dominated the market and accounted for 41.1% share of the global revenue in 2019. Second objective is to attain with the lowest cost and lead to everyone can fly. However, the plan has been cancelled due to the Stated-owned Malaysia Airports had tried to stop to build the new terminal and disagreement with former Prime Minister, Tun Mahathir. (Airasia, 2009), Airasia is using the Pull Strategy to deliver the low fare campaign information directly to the end-user customers. The information technologies that implemented are yield management system and computer reservation system. Stock: AIRASIA (5099), Company: AIRASIA GROUP BHD, Description: AirAsia Bhd provides air transportation throughout Asia. (Flightglobal, 2010). The second method is Post-Testing whereby the effectiveness of marketing communication is evaluated after the campaign launching. Moreover, self service check-in options is encouraged by the organization in order to helps in reduce the need for expensive airport infrastructure. The purposes of the messages delivered are to increase the campaign awareness, encourage the customer’s involvement and to influence the customer perception. (Midfresearch, 2010), Malaysia is the country which has 3 ethnics and the cultures are unique. AirAsia is to increase the size of its fleet before the end of the ... Chief executive Tony Fernandes said he was confident the airline can reach this target or “even exceed it” as it gears up to launch associate airlines in Vietnam and China in the ... Air asia Q3 capacity Infogram. Airasia can use the behavioural test to measures the responses and perception of consumer on the marketing communication after “Zero Fare” campaign was launched. The elements like gender, creed, age and ethic are not considered in the hiring process. 13 5.2 Target Market Profile Once the market has been segmented, the organisation can analyse, evaluate and prioritise which segment to pursue (Duncan, 2005). As such, they do geographic segmentation by focusing their services primarily in Asia. The second objective is to make sure that there is a communication relationship between the Airasia and the customers and the relationship can be strengthen through the campaign awareness and brand reputation. No plagiarism, guaranteed! 3. AirAsia is actually targeting for low to middle income group. The features in this concept are the organization shares the values and joyfulness in with the related parties. This strategy is including the pull selling which is requires high promoting to attract the customers and push strategy which is forces from the organization to increase the customer demand. Marketing Communication Campaign Cost (Avdertising, Direct Maketing and Public Relation). AirAsia is targets mainly the Asian market, hence the name AirAsia. In order to increase the awareness of the organization to the customers, Airasia is using direct marketing in order to encourage the interactions between organizations and allow users to be more understanding on the brand. Therefore, the pricing of airline tickets is one of the vital factors that influence. Thus, they, would be more attracted towards LCCs such as AirAsia. (Lee and Johnson, 2005). Airasia always help the victims of disaster and providing joyfulness and hope to them. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Moreover, this will lead to new market entry of first-time user. In order to compete with Airasia, MAS had launched the first low cost airline which is Firefly. Air Asia’s main targeted customers are Asian community. (Fill , 2006), Airasia is using the Profile Strategy which is using different messages in target all the stakeholders that related. (Airasia, 2010). A very strong name in Indonesian market … AirAsia target market segment consist of three different but overlapping segments that were segmented according to Geographic Segmentation, Demographic Segmentation and Psychographic Segmentation. The stakeholders of Airasia are customers, employees, regulators and the local communities. (Mobilemarketer, 2009). This allows the messages of the campaign directly communicate with the passenger and can across effectively whether on the ground or in the sky. For Airasia to complete and deliver the pull strategy, the method that use can be deliver the message through the social media or website by offering the low fare promotion to the customers. It faces stiff competition in airline sector and ha… Free resources to assist you with your university studies! By this, the customers can book the flight tickets, checking the ticket booking status and access to the promoting campaign. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. In order to be unique selling proposition, the strategy that used by Airasia is low cost carrier and has come out the vision of in becoming the largest low cost airline in Asia and makes the dream of average income people to fly happens. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. (Airasia, 2004), Low Cost Carrier business model is one of the strength of Airasia in order to compete in the airline industry. There are many activities that can be carried by the public relation in order to communicate to the related party. By practicing the meritocracy culture, Airasia believe that they can strive to exceed the community’s high expectation and provides equally treatment to all the communities. (Management of Technology, 2009). (Airasia,2009), Airasia had started the corporate blog (www.blog.airasia.com) in 2008 and Facebook (www.facebook.com/AirAsia) in 2009. The newspaper medias that used by Airasia in Malaysia are Star, Sin Chew Daily, China Press, Berita Harian and others. “Although we have Batik Air and Lion Air, Malindo will still offer international connectivity for the group,” he says. Lion Air controls nearly 50% of the domestic air market in Indonesia. (Wong, 2009), In 2009, the low-cost carrier airline that established well had proved that has sufficient power to operate across the region in different market and economic. Airasia is practicing the meritocracy culture and the employees are hired due to their performance and ability. The second area that focused is helping the communities to pass the hard time. The second strategy is the High Aircraft Utilization where the Airasia implementing the fastest turnover time in make sure the cost can be lower and productivity is high. The first area is the organization work place. The other threats are other entrance of low cost airline and the operation cost is increase due to the services that added. Course Hero is not sponsored or endorsed by any college or university. Moreover, the Airasia in Malaysia is also helping out in providing the cargo space to deliver the goods for the victims. It has the largest share of the domestic market share 2. Next, AirAsia may have segmented their market into lower, middle and upper social classes on the basis of variables as different social classes, would have different purchasing behaviors, expectations and preferences of brand. Airasia can use the interview method to collect the data of consumer perception on the marketing communication of the campaign and what message that gets from the campaign. The target set for 2018 was 90 million passengers. Moreover, Airasia use this strategy to encourage and attract the customers to purchase airline through the website channel. Company Registration No: 4964706. The last communication objective is to maintain the good relationship with the customers and keep updating customers with organization information’s. Lion Air SWOT Analysis Lion Air Strengths Below are the Strengths in the SWOT Analysis of Lion Air: 1. Looking for a flexible role? For example, low income and middle income, earners are more price sensitive compared to those high income earners. CEO of AirAsia, Mr Fernandez aware that there are a lot of workers or low pay salaries earner would like to travel back to meet their family especially during special occasions (Onwutalobi, Anthony.C, 2008). Our academic experts are ready and waiting to assist with any writing project you may have. Business Management & Finance High School, AirAsia Market Analysis & Competitor Assessment, Conduct a SWOT analysis on a local public listed organization of your choice.docx, Tunku Abdul Rahman University College, Kuala Lumpur, Business Management & Finance High School • MBA 1, Tun Abdul Razak University • MANAGEMENT QEM5023, Tunku Abdul Rahman University College, Kuala Lumpur • DIPLOMA IN DBF. Air Asia SWOT Analysis Air Asia Strengths Below are the Strengths in the SWOT Analysis of Air Asia: 1. “We are on track to achieve a group load factor target of 85%,’’ Fernandes had said earlier. Airasia ticketless system and near paperless office are the strategies to cut down the waste of paper. Stock analysis for AirAsia Group Bhd (AAGB:Bursa Malays) including stock price, stock chart, company news, key statistics, fundamentals and company profile. (Low, 2010) The costs that spend for 2008 are RM 5,630,520 and RM 61440980 for 2009. The objectives of this campaign are to offer low fares to customer to travel and offer discounts to the public in order to encourage more people to fly with Airasia. Besides that, Airasia use newspaper as advertising media. A. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. These services and information assessment through mobile technology has lead to the increasing in awareness of the organization and campaign promotion. Due to the existing of new competitor, Airasia Malaysia has two competitors in Malaysia. WAYS TAKING TO IDENTIFY THEIR TARGET MARKET Reduced Price Sales They reduced their price to suit their class of customers. One of the important advertising media that frequently used is the social media. The organization is follow the others world airline operation safety strategy and partnering with the world’s recognize repairing and maintenance manufacturer. The airline operator focuses on delivering lower fares without a host of other amenities. The long-haul market share in 2020 was 11.8% with 512,484 tourists from West Asia, the Middle East, America, Oceania, Europe and Africa. Lion Air Positioning Low cost carrier. At that moment, the Airasia decided to lend a hand and running the “charity flight” to help the victims to go out from that place. There are few area that focused by the Airasia in caring out this activity. One of the direct marketing tool that used by Airasia is the Yahoo Mobile. It does not provide frequent-flyer miles or airport lounges, but looks to cater affordable transportation to all customers. Stock analysis for AirAsia Group Bhd (5099:Bursa Malays) including stock price, stock chart, company news, key statistics, fundamentals and company profile. North America, and other countries, the largest market is China, whose demand reached 44.63 million units with a 3% decrease. (Management of Technology, 2009), Airasia has invested in the latest technology and full utilization of the aircraft in protecting the environment and A320 airbus which is more efficient to operate and more save fuel is used. Moreover, this direct marketing method had lead to the good responses from the users whereby the total click to the website is 108,405 clicks and the rate is 1.78 percent after 28days launching. The airline is the test-bed in running low-cost operation. They try to respond to a domestic demand. Do you have a 2:1 degree or higher? This test can be done by the qualitative and quantitative method which is giving out survey forms and collect opinions. 41. (Prices Comparison for one person one way ticket to Pulau Langkawi during promotion). purchasing behaviors. All work is written to order. With the help of computer and internet development nowadays, the organization is able to run two way communications for their products and services. In Airasia, one of the activities that carried out by the Public Relation is the Corporate Social Responsibility. The systems can help the airline to save the costs by recording on revenue and transactions in daily operations. The low-cost airline AirAsia reached a market share of 49 percent in its home market Malaysia in 2019. The last strategy is providing more different distribution channels such as Airasia Mobile and booking website for the customers to check the booking and the flight schedule information’s. (Airasia, 2009), In order to operate in Malaysia, Airasia must apply the Air Service License from the Malaysia Civil Aviation. These segments are categorised as Segment 1, Segment 2 and Segment 4 as indicated in Table 7. By using the newspaper, the messages of the campaign can be more flexible to access to the different coverage of markets and the target audiences are different. Air Asia operates with the world’s lowest unit cost of US$0.023/ASK and a passenger breakeven load factor of 52%. This, in turn, has affected the indoor air quality owing to gases, dust, and other contaminants entering the indoor premises. In order to communicate with the target audience, Airasia is using advertising as a tool in introducing the products and services. Air Asia Positioning Low Cost No Frills. We're here to answer any questions you have about our services. (Management of Technology, 2009), The Airasia main weakness is the airline more reliable on the out sourcing workforce. The Airport development is one of the plans as Malaysia Government expects the passenger’s amount will increase to 62 million in 2015. The efficient and simple ground environment is the main policy in protecting the environment. The first method is the Pre-Testing whereby the marketing communication concept, targeting group and behaviour are pre-test before the launching of campaign. *You can also browse our support articles here >. The first strategy that Airasia apply is the Safety First strategy on the maintenance of the airplane. The Firefly airline is the test-bed of Malaysia Airline System in running the low-cost operation instead to test for new market segmentation and the Malaysia Airline System will adapt and expand it into national carrier if the operation of Firefly is proven success and gain stability. (Thestar, 2007). The advertisements of the campaign can be placed in the auto boarding pass, the information counter, sales office and on the passenger’s seats. The first objective of Airasia is to become the largest low cost airline organization in Asia by provide services to 3 billion people. Airasia is celebrating the times of joy with the communities, practicing the communities’ value and traditions and delivering cares to them. The third is well established of brand name in Asia Pacific. The third method is Tracking Studies which is the study is involves the collection data of the consumer perception toward the campaign. Customer’s have the chance to choose and customize their service without compromising with the service or quality. There are few methods that Airasia can use to measure the effectiveness of the marketing communication in the “Zero Fare” Campaign. (Airasia, 2011), Another method of Airasia to run the advertising is using the Airspace advertising whereby the unique and effective way of advertising can be done to reach all the customers who take the flight. Firstly, under demographics, income, is one of the variables which the firm may use to segment their market. Airasia has corporate with Yahoo Mobile whereby the organization allows Airasia mobile website to put the banner advertisement on the Yahoo mobile homepage, yahoo mail and yahoo search. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Strong Promoter 2. To become differently from others airline, Airasia has implementing few strategies in order to make sure that the low fare model is possible to run. Besides that, the social media is able to provide a channel of communication for the organization to run the activity such as low fare promotions, new product launching and news announcement. AirAsia’s decision to drop plans to acquire Indonesian carrier Batavia Air leaves the group with the daunting task of having to rely on organic growth to increase its share of Indonesia’s booming but crowded domestic market. Moreover, Airasia can also use the sales test which is the measures on the sales and then will get result on the marketing communication effectiveness. The third largest market is North Lion Air Target Market Middle class / Frequent fliers. (Datamonitor, 2008). SEPANG: AirAsia Group Bhd will continue to lease aircraft and put more emphasis on its digital and ancillary businesses with the aim to become an 'asset-light' airline. Secondly, AirAsia is dividing the market by using demographic segmentation. If you need assistance with writing your essay, our professional essay writing service is here to help! The top 10 international tourist arrivals to Malaysia in 2020 were from Singapore (1,545,255), Indonesia (711,723), China (405,149), Thailand (394,413), India (155,883), Brunei (136,020), South Korea (119,750), Japan (74,383), Australia (72,680) and Vietnam (64,184). The increasing demand for clean air has resulted in augmenting the adoption of air purifiers. The mobile users just need to access to the Yahoo Mobile and click to the Airasia banner, the link will automatically connect to the Airasia Website. The second largest market is Asia, excluding Japan and China, whose demand reached 17.82 million units. By using this strategy through different marketing communication tools to deliver different message, Airasia is able to build up the awareness of the low fare campaign and the perception of communities toward the campaign. In Malaysia, the main competitor of Airasia is the Malaysia Airline System (MAS) which is Malaysia’s National Airline. Direct marketing is an interactive system that can helps the organization to personalized communications between them and the customers. Nowadays, the internet had made the people able to connect with the whole world people easily and more time is spending for online. Airasia is promoting and sending the messages to the customers by using other website. The second is Airasia has a very strong relationship with the government and the airline industry leaders. (Fill , 2006). To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The slogan that implement for the strategy is “Now Everyone Can Fly” whereby the tickets prices are lower. 2.2 Market Segmentation 2.2.1 Geographic Segmentation The geographic characteristics of the target market of AirAsia are obviously Asian people. Airasia airline had planned to build a new single-runway airport in Labu, Negeri Sembilan with the Sime Darby in 2009 and been approved by the government. In Airasia, the organization strongly agrees that social media is playing an important role in order for the organization to do advertising and build a consumer group that contributing trust to brand and value. By these, the customer behavior and perception may be changed and lead to the purchasing of the products. Thus, Air Asia has started to implement CRM as their performance measurement system on March 2009. is strategy and process of acquiring, retaining, and partnering with selective customer to CRM in Air Asia helps the company to target market, increase merchandise and launch various promotions by analyzing knowledge about customers. The third objective is to maintain the product quality and reduce the costs. One of the direct marketing tool that used by Airasia is the Yahoo Mobile. With the new approach of advertising and more cost saving, the messages can be reaching to large coverage of passengers. Task 7: Characteristic of the AirAsia's target market. The largest market of Air Asia’s segmentation consists of three segmentations which are Psychographic, Demographic and Geographic segmentations. By using social media, the messages of the products and services can be reaching out and able to share out the content of message effectively. AirAsia to consolidate market growth with fleet expansion. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The result will lead to the sales result and the consumer satisfaction result. Info: 3149 words (13 pages) Essay A new low cost terminal will be built by the in Kuala Lumpur International Airport for Airasia and has larger terminal.

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