AIR ASIA

Topics: Low-cost carrier, Airline, AirAsia Pages: 18 (1753 words) Published: March 8, 2015
Air Asia

Fundamentals of marketing

Group members: Maha Abdul Muhsin – 0316481
Cheng Joe Ern- 0316764
Choong Mei foong - 0317321
Lee Wee beng - 0317260
Nuraliya Abu Mansor - 0317184
Elisabeth Christine - 0316942
Adam Lee Shyuk Nam- 0317012

AIR ASIA Introduction
• AirAsia Berhad is a Malaysian low-cost airline headquartered in Kuala Lumpur, Malaysia.
• Air Asia was established in 1994 and began operations on 18 November 1996.
• On 2 December 2001, the airline was bought by former Time Warner executive Tony Fernandes' company Tune Air Sdn Bhd
• AirAsia group operates scheduled domestic and international flights to 100 destinations spanning 22 countries.

• AirAsia X is the international operation of the brand AirAsia, which is Asia's largest lowcost carrier. • There are currently over 150 Airbus A320s in service and another 200 orders have been placed for the new A320neo.

• Won Skytrax’s ‘World’s Best Low-Cost Airline’ for 5 years running. • Flights operate throughout asia, starting from Singapore, to China, Hongkong, Indonesia, Cambodia, Nepal, Japan and many more, and to different destinations within the country. • From one route between KL and Langkawi, two planes and a staff  of 250 in 2002, to over 88 destinations and carried over 220 million guests.

Unique Selling
Proposition
• Low fares
• Unit costs are among the lowest
• Great value, amazing quality

Why Air Asia
• A tourism related company.
• Affordable travel option to worldwide destinations.
• Affordable package offerings to various destinations.

WHY TOP LCC IN THE
WORLD?
• Direct flight to many countries
(e.g. Australia, Saudi Arabia and etc)
• Sponsor a lot of events
(e.g. Taylor Swift Red Tour Concert)
• Value for money but also provides very good services

Targeted
Customers
• Backpackers / budget travellers
• People who are going on holiday
• Group travellers

Product/Service Attributes
Customers Look For
SIMPLE PRODUCT
• to the plane seating that is narrow and with only one class • No seat assignment offered
• Catering is not included on the bills
(Unless choose from special demand and pay extra
money)
• Frequent flyer programmes are omitted

Demographics
( age, gender, race, nationality )


Age group who are young adult and above.




Because this kind of age group have the ability to spending and may be always need a flight to other far destination in shorter time

 Target market of AirAsia are most probably Asian people


The name of the company, AirAsia, and its development in all the different countries of Asia is the proof that they target people from all Asia.

 Psychographic and
behaviour characteristics
 People who want to travel in Asia for leisure or business purposes
 Their main purchasing motivations are the price and the
simplicity for buying and check-in

 People who would like to travel often to meet their
families especially during special occasions
 By introducing a low fare will give all those people
opportunity to travel if not more than once in a year.

Salary
 People who salary are fall in the middle or lower income in Malaysia.
 That is the reason why the AirAsia always use the low price strategic to position it is always cheaper than their competitors

 The people who are benefit sought, sensitive to price and none loyalty status.
 So, they will easily attract and influence by the promotion doing by the AirAsia which only RM0.99 for a flight.

MICROENVIRONMENT

Business Partners
• Expedia
• Aimia Inc and Think Big Digital Sdn Bhd
• HPE Clothing

- AIR ASIA HAS THE HIGHEST
NUMBER
- AIR ASIA FOR 10 YEARS HISTORY
HAS OVERTAKEN MAS
- BECOME MALAYSIA’S LARGEST
CARRIER BASED ON PASSENGER
- MAS FOCUS ON FULL SERVICE
- AIRASIA FOCUS LOW FARE POINT –
POINT PRODUCT

Direct Competitors









MAS - Malaysia
Malindo - Malaysia
Lionair - Indonesia
Citilink - Indonesia
Tiger Group –...
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