Low-cost Carrier and Air Asia

Topics: AirAsia, Low-cost carrier, Airline Pages: 8 (2560 words) Published: June 19, 2013
Table of Contents
Introduction1
Background2
SWOT’S analysis2
Market segmentation/ target market3
Marketing Mix4
Product4
Prices4
Place5
Promotion5
Suggestions5
Conclusion6
Referencing6

Introduction

Marketing is defined as the process which companies create value for customers and build strong customer relationships. (Kotler & Armstrong, 2010).Nowadays, the competition among airline industries is very challenging as more low-cost airlines were blooming. Besides that, they were also facing the challenges from those well-known airlines such as MAS. Therefore, a research regarding AirAsia- World’s best low-cost airline was conducted in order to investigate the company.

The main objective for this assignment is to evaluate the effectiveness of existing market mix which were being employed on the target segments of the business and followed by some useful suggestions to solve those obstacles.

In order to accomplish the objective stated above, we made an effort by investigating the company’s background so that we know more about the company which will help us in our further research. Besides that, a SWOT (Strength, Weakness, Opportunities and Threats) , the target market and the 4Ps (Product, Price, promotions and place )for the particular company was investigated .Based on those finding ,appropriate suggestions were made to overcome problems that occur in order to increase the company’s standard as well as the branding.

Background

AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia.(Wong Pui Man Cary, March 2009). Air Asia has their own associate companies as well for instance, Air Asia Thai Air Asia and also Indonesia Air Asia. For your information, Air Asia X actually focuses more on the low cost and long haul segment. They offer X-citing low fares, X-emplary levels of safety and care and an X-traordinary in-flight and service experience to all the guests. They own a slogan which is “Now Everyone Can Fly” (Air Asia, 2011).

Air Asia have their own vision which is to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares (AirAsia,2011).This means the air tickets fee will be cheaper compare to the other airlines. Besides, they even aim for billions passenger to travel with their flights. If there is a vision there must also have their company missions too. The first mission is to be the best company to work for whereby employees are treated as part of a big family (Air Asia, 2011).By having such mission; every co-worker will be treated friendly like a big harmony family. Secondly, Air Asia wanted to create a globally recognized ASEAN brand which they actually achieve it already. Thirdly, to attain the lowest cost so that everyone can fly with Air Asia. Lastly, to maintain the highest quality product, embracing technology to reduce cost and enhance service levels (Air Asia, 2011).This point means they wanted the best for the customers. Air Asia has good achievements by getting lots of rewards almost every year since 2003-2010 years. For instance, during last year Air Asia was being rewarded by the Skytrax for the world’s Best Low Cost Airline (Air Asia, 2011).

SWOT’S analysis

SWOT analysis is a tool that helps identify business strengths, weaknesses, opportunities and threats. It can assists in the marketing planning process particularly with the marketing audit. The internal characteristics are the strengths and weaknesses while the external are the opportunities and threats (Levens, 2010).

The strength of Air Asia is a low cost leader in Asia. With the help of AirAsia Academy,...
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