Low-cost Carrier and Air Asia

Best Essays
Table of Contents
Introduction 1
Background 2
SWOT’S analysis 2
Market segmentation/ target market 3
Marketing Mix 4
Product 4
Prices 4
Place 5
Promotion 5
Suggestions 5
Conclusion 6
Referencing 6

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

You May Also Find These Documents Helpful

  • 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…

    • 1157 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Low Cost Carriers

    • 1663 Words
    • 7 Pages

    airline markets around the world, control of operating costs and improved productivity have become critical to the profitability of airlines. The emergence and rapid growth of “low-cost” airlines is due in large part to their ability to deliver air transportation services at substantially lower costs and at higher levels of productivity than the traditional “legacy” airlines. In response, legacy airlines have had to find ways to reduce operating costs and improve the efficiency of how they utilize both…

    • 1663 Words
    • 7 Pages
    Better Essays
  • Best Essays

    Low Cost Carrier

    • 2764 Words
    • 12 Pages

    The Report of Low-Cost Carriers Table Of Content 1. 2. 3. 4. 5. 5.1. 6. 7. 8. Abstract ..................................................................................................................................................... 2 Background information ........................................................................................................................... 2 The Low-cost carriers Business Model ...........................................................................…

    • 2764 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Low cost Carrier

    • 2771 Words
    • 12 Pages

    entry of low cost carriers. other factors include several macro-level socio economic troubles, SARS crisis, 9/11 attacks, bird flu, Asian Tsunami and other terrorism concerns, due to this there has been a big impact on airline profit. As market condition is continuously changing, it is difficult to predict the future of the airline industry. the overall industry as we see it is in a weak position, even though the demand is rising. companies now are providing additional services at low cost and decreasing…

    • 2771 Words
    • 12 Pages
    Good Essays
  • Satisfactory Essays

    Low Cost Carriers

    • 275 Words
    • 2 Pages

    Low-Cost Carrier A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline or cheap flight) is an airline that generally has lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. While the…

    • 275 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Multimedia University BRM8014 Advanced Marketing Case Writing The Low Cost Carrier Model - Air Arabia Student Name: Abdelbaset Queiri Student ID: 1111800065 1. Introduction Amidst the global crisis in the airline industry, figures from the International Air Transport Association (IATA) report that actual passenger traffic worldwide has increased 5.9% from the previous year for the period Jan-Sep 2006. Alarmingly, the Middle East has shown the strongest…

    • 6102 Words
    • 25 Pages
    Powerful Essays
  • Good Essays

    The idea to enter the world of the full cost carriers by low prices isn’t a new one. Already in 1977 Laker Airways founded the “Sky Train” between London and New York. Even if this service was never successful, more and more low cost carriers were founded during the progress of deregulation and the development of an own low cost strategy began. When we today have a look at the homepages of low cost carriers we cannot but state that nearly all of them are operating successful despite the issues of…

    • 1937 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Is Low Cost Carriers Safe

    • 868 Words
    • 4 Pages

    Introduction Budget airlines, as you would guess from the name, offer inexpensive tickets -- sometimes as low as $50 for a one-way ticket. They manage this by cutting their own operating costs. How do they cut costs? There are many ways an airline can trim operating expenses, but budget airlines are most well-known for cutting back on passenger luxuries, or making passengers pay for luxuries à la carte. What's behind the success (and sometimes failure) of budget airlines? Do they cut corners on…

    • 868 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Low Cost Carrier Impact

    • 1532 Words
    • 7 Pages

    February 2003 English and French only THE IMPACT OF LOW COST CARRIERS IN EUROPE (Presented by Albania, Armenia, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Moldova, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Serbia and Montenegro, Slovakia, Slovenia, Spain, Sweden, Switzerland, The former Yugoslav Republic…

    • 1532 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Low Cost Carriers Paper

    • 2554 Words
    • 11 Pages

    operations M2 Explain the implications of the legal requirements of airfield operations Student’s name: Blessly Ortiz Assessor’s name: Rami El Samra Introduction: Low-cost carriers are no-frills airlines that offer cheap ticket fares to passengers who would like to fly at a minimal cost. Many low-cost carriers start to enter the aviation market which became one of the struggles to all major airlines that have already existed years back. Through the years, these types or airlines begin…

    • 2554 Words
    • 11 Pages
    Powerful Essays