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AirAsia. This report aims to analysis the marketing strategies that the airline adopted into its marketing management practises, and focuses on the 7 Ps; price, place, product, promotion, people, process, physical evidence.

Extracts from this document...

Introduction

Introduction: AirAsia, an airline company that has experience the "from rugs to riches" storyline, is one of the leading airlines in Asia. It was established with the aim of saving it form the heavy debt that it was incurring at the time, as well as, as an idea that was new at least to the country; the low cost flying concept. Established in 1996, the airline has used strategical marketing strategies and innovative methods in order to survive and establish itself as a leading airline in the industry. This report aims to analysis the marketing strategies that the airline adopted into its marketing management practises, and focuses on the 7 Ps; price, place, product, promotion, people, process, physical evidence. Also, evaluation will be made on the methods that the company used to identify and market its products to its target market, and illustrating the ways in which they managed to implement this marketing mix to make their marketing management practises and strategies both effective and efficient, to achieve the company goals set. 1.0 Marketing practices adopted by AirAsia: In AirAsias' marketing mix, they incorporated the 7 Ps market mix strategy that helped them advertise their products. Amongst the 7 Ps marketing practises, the company capitalized in each in the following ways: Physical Evidence: Billions of people around the world move from one location to another for various reasons every single day. ...read more.

Middle

With this "promotional" flights concept, everybody could now fly; even locally. This also enabled customers who had no choice to take the more costly flights to now have a choice thus millions of flyers started to switch to low-cost carriers because of the cost savings the company offers. This also enabled individuals as well as company save money which is the idea that the airline marketed, especially to the frequent flyers. 2.0 Integration of marketing mix As can be seen through the properties under each category of the 7 Ps that AirAsia has incorporated in their quest to their marketing management and strategical moves, each marketing move has more than one category. This is dues to the way the marketing team has integrated each category with the other, to make a blend between them that forms an effective if not perfect marking mix that the airline requires in order to capture the customers that they have now, as well as the targeted ones. Starting with the physical evidence, it is states that, "Malaysia Airlines is not part of an alliance, but 68.5% of its connecting passengers surveyed were transferring to other code-share flights. Only 6.6% of Malaysia Airlines passengers questioned connected with Air Asia at Kuala Lumpur. Very few of Air Asia passengers surveyed were transferring: four were connecting to a Malaysia Airlines long haul service, while the remaining three were transferring to Air Asia flights. ...read more.

Conclusion

Also, in the target customer identification process, the airline also targets the age group who mostly young adults and above, because they have the spending power and potential to travel more often as compare to other age groups. Conclusion: Therefore as can be seen, the airline was built under a low cost fare concept, which was imprinted into their business process and marketing plans in order to create a new market audience and attract a good market of those who were already being competed for in the industry. Through implementing the 7Ps marketing practises, the company was able implement its plans, policies and market its products effectively, for it to be able to turn from a company that was deeply buried in debt to one that turned out to be really profitable and has a good marketing positioning in the industry. Also as can be witnessed through other articles, the company adopted a business model that was already being carried out in other airline companies in the world in order to survive and thrive. REFERENCE: Passengers' perceptions of low cost airlines and full service carriers; A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines, By John F. O'Connell, &George Williams Website: https://dspace.lib.cranfield.ac.uk/bitstream/1826/1453/1/Passengers%2Bperceptions-low%2Bcost-full%2Bservice-pdf.pdf (Viewed on 20th November 2010) KnowThis.com; Price vs. Value, 1998 Website: http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/price-vs-value/ (Viewed on 20th November 2010) ...read more.

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