Written Analysis of a Case|
Mariam Soomro, Sharmain Malik, Syed Zainul Islam & Farooq Tirmizi|
This paper will be referring to the case study “Princely Jets (Pvt.) Ltd. – The Air Ambulance”. It will discuss at length the issues brought out in the case which concern the new Air Ambulance service that Akbar Group of Companies is planning to launch. This paper asserts that Akbar Group should go ahead with the launch of the new service at the proposed price US$ 750 monthly membership and an hourly rate of usage of US$2500. The paper will attempt to justify the pricing strategy and discuss the mix of promotion tools that they should make use of. Overview
The Akbar Group has a diverse group of companies with their operations being divided into two major categories: the aviation division and the commercial division. They started operations in Pakistan in 2005 with Princely Jets (Pvt.) Limited with their first private charter jet services. They offered private jet services on an adhoc as well as on a scheduled flight basis with an objective of making the private jet charter experience simple, comfortable, enjoyable and unique. They launched in Karachi and later on expanded their services to Islamabad in 2006. By 2008 they had a fleet of 6 aircrafts. They had an average growth rate of 15% and a return on investment of 3%. Their aviation division also included being the General Sales Agents for twelve international airlines; they were representatives of Amadeus; and they offered travel agency services under the name Princely Travels and Citilink. Their commercial division included allied businesses such as the distribution of Nike and United Parcel Services (UPS). They also had exclusive distribution of travel insurance for the American Insurance Group. Akbar Group also introduced many global businesses in Pakistan such as McDonalds, The Princeton Review and LMVH Watches and Jewelry. Market Situation and Competitive Scenario
Pakistan suffers from a host of problems such as political and social unrest. The rate of political protests, traffic accidents, criminal assaults and terrorist attacks has increased significantly. There is a constant need for transportation of victims for emergency needs. There have been many instances where the patient never makes it to the medical facility in time because of traffic jams. There are a sufficient number of medical rescue teams that provide ambulance services such as Askari Aviation, Edhi Foundation and Chhipa Ambulances, but none that provided specialized air ambulance services. The Akbar Group identified this gap in the market and decided to offer an Air Ambulance service to cater to this unmet need. It was easy for them to cater to this need as it would be a natural extension of their aviation services that they provided through Princely Jets. They had an existing clientele from their Princely Jet services who they could target for the same specialized air ambulance services.
Segmentation and Target Market
The Akbar Group chose to segment the market using two techniques: Psychographic and Demographic. Psychographic: They wanted to target affluent customers who would be “willing to provide insurance for this value added medical facility not only for their personal use but also for the use of company employees”. Demographic: The target market identified for the air ambulance service included corporate entities such as multinational and large national companies, banks, embassies, governmental agencies and some high net worth individuals. Marketing Mix
The Akbar Group proposed the following with their Air Ambulance Services: * Transportation of physicians and specialists to remote areas * Inter-hospital transfer of patients requiring specialist’s treatment and immediate attention * Quick transportation of blood and human vital organs
* Medical and other assistance to companies and...