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Tang Siu Fung

on 1 November 2013

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Transcript of mktg

Total Product Concept
Product Life Cycle
- Communicate pretty well in general.
- Well established as 'budget airline' via advertising.
- Topical advertisements = Interested/ involved in the public.
- See example below.
- Live webchat for enquiries/booking.
Core product: transport passengers and goods to different
destinations safely.
Expected product
Consumer Behaviour
Provides all day low fares across:
>New Zealand
>Asia Pacific region.
lowest fare
flexibility- change flight
potential product
allows passengers to book exit row seats for free
Increasing growth in passenger numbers in Australia from 2011-13.
Market share in Australia increased by 6.4% from 2002 to 2012
Increase in passenger numbers carried over the last 6 years
Constant innovation by Jetstar
(new service: web check-in)
Operating losses and increasing sales
-> extra leg room
1. Total Product Concept
2. Product Life Cycle
3. Positioning
4. Brand Equity
5. Communication
6. Consumer behaviour
7. Recommendation
Checked baggage allowances- 30kg in Economy Class
Provides 1500 channels of new and entertainment programming.
Value-based airline
Nine million tonnes of excess fuel will be saved annually
- Focus on UMC/ Businessmen.
- Established as premium service (classy)
- Think less of budget airlines.
- Ask Hamad answering questions
- Standout, high quality advertisements.
- Superheroes.
- Very involved in Twitter and Facebook, etc.
- Communicate big company (Branson). Therefore reliable.
What is Positioning?

Need want recogntion
Information search
Virgin was the only airline that has a mobile application where information on flight specials can be found
All three airlines had websites where information can be sourced
Evaluation of alternatives
All three airlines provide convinence of online booking
Jetstar provides very unflexible fares while Virgin and Emirates provide more flexible fares
Post-purchase evaluation
What is branding?
Purpose of branding
Main functions of a brand
Large international airline company
Aims to distinguish itself from rivals:
- aircraft fleet
- quality of service
- range of destinations
Build reputation as trusted and reliable

Used to define the way in which a market precieves an organisation and its products in relation to other competing offerings.
Meaning it is the way in which they promote themselves over other competing organisations, trying to distinguish and promote their product from another.
How to company wants to be preceived by the public
how its products are seen
how the market distinguishes them from similar porducts

Wants to be seen as a good offer in terms of price against quality
Affordable flights with above average service (Below Emirates, Higher than Jetstar)
Targets relatively price sensative consumers that seek good service.

Company wants to be precieved as a budget low cost service
Products are seen as very cheap budget service.
Market distinguishes through price.

Company wants to be seen as expensive high end product.
Product wants to be precieved as a luxurious good/service.
Market distinguished throgh price and quality served.
-> business man
What is brand equity?
Influential elements:
- brand awareness
- brand associations
- customer loyalty
- perceived quality of products and services
Communication via Social Media
Ads circulating in the Twittersphere.
And this guy.
hey sexy ;))
Branding in action:
- Exceptional in-flight service standards
- Advertising campaigns (TV, Online)
- Past experiences of previous passengers
- Connotations of luxury
Well-established, smaller-scale airline network
Low fares are its main competitive advantage
Poor quality, very basic in-flight service
The brand
- Highly identifiable orange star
- Good awareness from advertising, social media
- Associations with charitable organisations
- Decent customer loyalty
Group 4A
Excellent customer service
Reasonably priced flights
Tailored to different market segments
Sense of exclusivity and indulgence
Agumented product
Variety of positive associations
- Surf lifesaving AUS
- Foodbank
- Garners public support
- Corporate Social Responsibility
- Greater customer loyalty
- Company's success
Consumer perception
- Low-cost carrier
- Poor quality service
- Generally unfavourable
Recommended actions:
Target different market segments
Develop communication methods
Improve brand image
Need/ want recognition
Information search
evaluation of options
Post-purchase evaluation
Jetstar and Virgin both have active twitter and facebook pages where customers can communicate.
Emirates and Virgin used loyalty programs to maintain customer relationship
Full transcript