Low-cost Carrier and Air Asia

Good Essays
Marketing Principles

Assignment one

Air Asia

Section 101

Ibrahim K. Al-Zuwaid

200800196

Company Case Q. What are the micro and macro environmental factors that have contributed to the early success of Air Asia?
Micro factors: 1. Fernandes (the CEO of Air Asia) contributed heavily to the success of Air Asia. He was seen working alongside with the employees as a baggage hander to get to know his staff members and to listen to the customer’s wants and needs. Mr. Fernandes also asked customers for feedback for the service that was provided for them. Feedback is crucial for Air Asia so that they could implement their strategy effectively and efficiently. Moreover, Frenades has support and engaged Dr, Mahathir M. to network with neighboring countries in an effort to develop an open-skies agreement and grant landing rights to Air Asia. This worked to the advantage of the company now it could penetrate a bigger market and target a wider pool of customers. 2. Low price was the smartest marketing strategy Air Asia used. The company has done its research and found that there were a huge mass middle-class people that love to travel by plain. They targeted these people and offered them convenient and affordable air travel experience. By this approach, the company has satisfied its slogan “Now everyone can fly”. 3. Convenience also played a major role in the marketing strategy. To keep customers happy, Air Asia offered customers with agents to cater to travelers who are uncomfortable with booking online. Also it provided an easier way to pay for tickets by visiting a local bank and pay by cash. This is a genius strategy because Air Asia knows its customers. It knows that a portion of its customers that fly Air Asia don’t have that much money to carry around so there are little chances that they would own a personal credit/debit card. 4. Another micro factors is that the company kept its prices very low and maintained a high rate of

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