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Air Asia

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Martha Priscilla

on 16 July 2015

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Transcript of Air Asia

Situation Analysis
Market Summary
Situation Analysis
Marketing Strategy
Marketing Strategy
Air Asia
Company Profile
2 December 2001, the heavily-indebted airline was bought by Tony Fernandes
Back in the routes in 2002
To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.
A low cost airline carrier that offers five-star service with 95% of on-time performance. 
To be able to provide affordable airfares, at the same time promoting Malaysian hospitality and the local food. 
To focus on customer’s needs by stimulating demand and offers the lowest fares, comprehensive distribution channel and developing various products and services. 
Target Market
Customer from Low – Middle Class of Income
Market Analysis
- Company is aiming the lowest fare for passengers
- Trademark: Now Everyone Can Fly

Market Demographics
- Franchising in developing countries (Indonesia, Philippines , Thailand, India)
- Income: indicates the capability of the passenger in choosing airlines
- Lower – Middle Class

Market Needs
- Passenger needs a cheap ticket, yet with a safe flight
- To travel to international route

Market Trends
- Became famous for the lowest-cost-carrier in Asia
- To compete and be the best in Asia:
a) They always offer discount and promotions.
b) Actively and continuously when it comes to introducing new routes

Market Growth
- Overtake Malaysia Airlines as the biggest carrier (weekly seats) at KLIA
- Now Air Asia holding 45% of all seats in KLIA
- Almost 300% of growth in the last decade
Segment Segment 1 Segment 2 Segment 3
Middle Class
IDR 10-20 million
Social Class

Usage Rate
IDR 0-10 million
IDR 10-20> million
Lower Class
Middle Class
A Malaysian low cost airline, headquartered in KL
18 November 1996, founded by a government-owned conglomerate, DRB-Hicom
1. Promote the organization, services and products through the effective communication program to the customers.
2. 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.
3. Expand the communication and media strategy in order to create brand or product awareness to the customers in order to achieve the organization goal.
4. Maintain the good relationship with the customers and keep updating customers with organization information's.

Air Asia's brand name is well established in Asia Pacific
Air Asia is the low cost leader in Asia
Air Asia has a very strong management team with string links with governments and airline industry leaders
Air Asia has the excellent utilization of IT
Air Asia receives a lot complaints from customers on their service
Air Asia does not have its own maintenance, repair and overhaul facility
There is also some opportunity to partner with the other low cost airlines
The population of Asia middle class will be reaching
"ASEAN Open Skies" agreement has been reached.
Certain rates and charges are beyond the control of airline operators
Customers worry about safety
Air Asia's profit margin is about 30% which has already attracted many competitors
Marketing Strategy
Target Marketing
A lot workers/low pay salaries earners
The leading and largest LCC in Asia.
“Now Everyone Can Fly”.
High efficiency in every part of the business.

Marketing Mix

Marketing Research
Adding more routes and planes in 2016
Financials and Forecasts
Air Asia milestones:
1. Add five aircraft started 26 February 2015 for deployment in India, Japan, and Thailand.
2. Air Asia targets China with UnionPay deal.
3. Air Asia BIG fixed points press release

12 month price targets for AirAsia have a median target of 250.00, with a high estimate of 370.00 and a low estimate of 153.00. The median estimate represents a 16,678.52% increase from the last price of 1.49.
Thank You
Glorianna / Martha / Novia
Rachel A / Rachel S
Situation Analysis
Service Offerings
Flight bookings
Low fare finder
Customized travel
Inflight comforts
Island & City Transfers
Fly direct, Fly-Thru or self connect
Travel insurance
Destination highlights
Full transcript