Firefly Pricing Strategies

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1.0 Introduction to Firefly
FlyFirefly Sdn. Bhd. operating as Firefly is a full-service point-to-point carrier and a full subsidiary of Malaysia Airlines. The name Firefly was chosen to describe the airline’s characteristics, which represent agility, brilliance, charm and fun. With unique description, Firefly is easily remembered and recognized. It has the potential to grow and command a brand premium in the community it serves. Firefly is launched on 3th April 2007 and it is Malaysia’s first community airline. It is operated by Malaysian Airline System Sdn. Bhd. formerly known as FlyFirely Sdn. Bhd. It is a wholly-owned subsidiary of Malaysian Airline System Berhad. The head office of Firefly is located on the grounds of Sultan Abdul Aziz Shah Airport in Subang, Selangor. Firefly operates from two hubs which are Sultan Abdul Aziz Shah Airport in Subang, Selangor and Penang International Airport. Although Firefly is fully owned by Malaysia Airlines but it is managed by Firefly Sdn. Bhd. Firefly focuses on serving the dynamic Malaysia, Indonesia, Thailand and Singapore growth region which population consist more than 70 million people.  Firefly aims is to bring communities closer by overcoming geographical constraints through their network, linking the world to the communities they serve and contribute to local economies by growing trade and tourism. The target market of Firefly has always been travellers both for business and also leisure. Travellers for both business and also leisure are potential customers of Firefly as it is a low cost airline providing great services.

2.0 Marketing Mix Strategies
Marketing mix is a mixture of numerous ideas followed by a marketing representative in promoting a particular product or brand. The elements of marketing mix are often called the four P’s of marketing which are product, price, place and promotion. When marketing their products Firefly need to create a successful mix of the right product sold at the right price, in the right place using the most suitable promotion. 2.1 Product Mix Strategy

Firefly provides customers with intangible products, such as flight services all over the country and also overseas such as Singapore, Indonesia and Thailand. Guest convenience is an element of Firefly’s product mix. Firefly offers reasonable low fares while ensuring its passengers comfort and convenience. The empty seat option is convenient for customers who want to enhance their travel experience and comfort. Firefly is able to retain its customers by providing them with excellent service making them feel that the flight is worth their money which will lead to customer loyalty. Safety is also one element of product mix where Firefly offers Travel Protection to protect passengers from unexpected mishaps, minimize losses and offers emergency assistance. Firefly also provides insurance coverage for its passengers to make them feel protected during its flights. Expansion strategy is implemented by Firefly where it expanded its operation from Penang to Subang and acquired ten ATR 72-500 aircrafts to replace the F50 aircrafts. Furthermore, Firefly ordered thirty Boeing 737-800 aircrafts in relation to its expansion into regional markets in the future. Contraction strategy is also carried out by Firefly when it started to discontinue flights served by its Boeing 737 fleet and ceasing all jet routes by December 2011. Firefly announced on 8th March 2008 that flights from Penang to Kuala Terengganu, Kota Bharu, Koh Samui and Kuantan have been temporarily suspended which is only reinstated during 2011.

2.2 Marketing Mix Pricing
Each product or service comes with a price to obtain, which creates sales revenue. Pricing of an item is an important determinant of the value of sales made. Penetration pricing is also one of the pricing strategies executed by Firefly. Firefly flight services are currently the lowest among the market which has potential to increase sales and market share. The...
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