Air Asia Case

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1.TODAY’S SCENARIO

Companies today recognize that they cannot appeal to all buyers in the marketplace – or at least not to all buyers in the same way. Buyers are too numerous, widely scattered, and varied in their needs and buying practices. Moreover, the companies themselves vary widely in their abilities to serve different segments of the market. Instead, like Best Buy, a company must identify the parts of the market that it can serve best and most profitably. It must design customer-driven marketing strategies that build the right relationships with the right customers. Thus, most companies have moved away from mass marketing and towards target marketing in which they identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each. Instead of scattering their marketing efforts, firms are focusing on the buyers who have greater interest in the values they create best.

2.WHAT IS CUSTOMER-DRIVEN MARKETING STRATEGY?

Customer-driven marketing strategy implemented based on the customer-driven. It creates value for targeted customers. There are four major steps in designing a customer-driven marketing strategy. In the first two steps, the company select the customers that it will serve. Meanwhile, in the final two steps the company decides on a value proposition – how it will create value for target customers. Figure below illustrates on designing customer-driven marketing strategy.

TASK 1: FOOD AND BEVERAGE INDUSTRY (Big Apple Donuts & Coffee)

1.BEHIND THE NAME

The idea came from a group of passionate individuals who have vast experience in the food and beverage industry in Malaysia, Singapore, Indonesia and Thailand. On the 2nd of May 2007, Big Apple Donuts & Coffee established itself in Malaysia with the opening of its first store at The Curve. It is wholly owned by Big Apple Interasia Sdn. Bhd, a parent company with several subsidiaries under its corporate umbrella. Its trademark store can be found in almost all major shopping malls across the country, and immediate plans are underway to expand to China, Thailand, Vietnam, and the Middle East.

2.IDENTIFYING ATTRACTIVE MARKET SEGMENT

Market Segmentation is the process that companies use to divide large, heterogeneous markets into small that can be reached more efficiently and effectively with products and services that match their unique needs. There is no way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view market structure. The major variables that might be used in segmenting consumer markets are as follows: a)Geographic Segmentation: dividing a market into different geographical units, such as nations, states, regions, countries, cities, or even neighborhoods. b)Demographic Segmentation: dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. c)Psychographic Segmentation: dividing a market into different segments based on social class, lifestyle, or personality characteristics. d)Behavioral Segmentation: dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product. (Principles Of Marketing, 14th edition by Kotler & Armstrong)

As Big Apple specialized in offering a wide range of donuts and beverages to people who want something different from the norm, they primarily consider Demographic Segmentation in order to select their customer. One reason is that customer needs, wants, and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables. In addition, Big Apple take age and life cycle stage into consideration while selecting potential customer as customer needs and wants change with age. Instead of offering...
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