FACULTY OF APPLIED COMMUNICATION TRIMESTER 2 2023/2024 KMC6203 MARKETING COMMUNICATION STRATEGIES STUDENT NAME STUDENT ID SITI NOOR IZZAH BINTI ADIL 1221301866 SHARIFAH SOFEA LIYANA BINTI SYED SAPRI 1221303244 CHEW KAILEE 1221302163 JOANNA RESHMI MOGAN K.M 1221301399 LECTURER’S NAME: DR NURAFIQ INANI MAN DUE DATE: 3 MAY 2024
INTRODUCTION Air Asia Berhad or Air Asia in short is a Malaysian Low-cost Airline that was founded in 2001 by Tony Fernandes and his partners , the aim of Air Asia was to be the lowest cost airline in Asia and to serve the public with the utmost comfort and service, Air Asia stands as a transformative force in the industry of air travel, hoping to revolutionize the airline industry with accessibility and affordability. Air Asia’s headquarters currently lies in the centre of Kuala Lumpur, Malaysia. The airline services that Air Asia provided over the years has not only expanded in Malaysia but in many other Asian countries, for example China, Thailand, Indonesia and Europe Countries such as Australia and New Zealand. At the fundamentals of Air Asia success lies its pioneering spirit and innovative business model, their vision mission and values lay its path to democratizing travel and ensures their customers to explore new destinations. Furthermore, Air Asia has embraced innovations and digitalization of their operations that ensures passengers with user friendly platforms to book reservation, flights and to obtain critical information and easily access essential travel information. Not only, does that imply, Air Asia has gone over and beyond for passengers to grap information on the tips of their hand by sharing critical news and information in different social media platforms, such as Instagram, Facebook and X (Twitter’s former name) so passengers' have easily accessible.
II. THE COMPANY MARKETING STRATEGY FOR THE BRAND AirAsia has become a prominent participant in both the Malaysian and international airline sector by focusing on giving low-cost air travel options to all the people from around the world. Because of its wide global network, the name AirAsia has become well-known in the low-cost domestic and international travel markets. The airline attracts a diverse range of cost-conscious passengers from Malaysia and around the world. AirAsia has established itself as the go-to alternative for budget-conscious customers by stressing cost without compromising service. AirAsia's marketing strategy is centred on strategic positioning, precise targeting, and effective product and service segmentation. By segmenting the market by region, the airline tailors its offers to fit all of its clients' individual expectations and interests. This concentrated approach allows AirAsia to easily reach its target audience while also adjusting its services to meet market expectations. AirAsia touts itself as the low-cost industry leader by offering highquality services at competitive prices, with an emphasis on customer satisfaction to ensure a dependable and comfortable travel experience. Despite its cheap rates, AirAsia remains devoted to providing great value, earning a solid reputation as a reliable provider of fairly priced air travel among all other carriers. Furthermore, AirAsia’s advertising efforts has adopted a complete branding strategy to foster a strong emotional connection with its customers. AirAsia emphasises its commitment to making air travel accessible to everybody by including recognisable branding features such as vivid aircraft livery, a distinguishing red logo, and the memorable phrase "Now Everyone Can Fly." Emotionally appealing to a wider audience, this distinctive brand identity has won over tourists all around the globe. On all the main social media sites, AirAsia is constantly interacting with its followers in various platform, such as Facebook, Instagram, and Twitter, given that it understands the importance of a strong web presence for the continued success of its brand. In addition, AirAsia maintains an engaging and informative social media presence by sharing a range of material, such as travel tips, exclusive bargains, and reviews penned by real customers.The innovative strategy accomplishes two goals at once: increasing recognition of the brand and fortifying connections
with consumers, which in turn increases loyalty to the brand and the frequency with which they shop there. In addition to social media, AirAsia uses billboard and print marketing to reach a larger audience. This multi-channel strategy enables AirAsia to reach beyond its current fan base, reinforcing its position as the top choice for low-cost air travel. AirAsia maintains its market presence through a variety of branding activities and marketing tactics, achieving its mission of delivering accessible, high-quality, and reasonably cost air travel for all.
III. MARKETING MIX OF THE BRAND The Malaysian-based AirAsia Berhad is widely recognised as AirAsia. The brand AirAsia is known for its 7Ps marketing mix that includes, the Product, Price, Place, Promotion, People, Physical Evidence, and Process of AirAsia. These are the few examples of the brand marketing mix. PRODUCT STRATEGY: AirAsia's product mix is diverse and comprehensive, catering to various customer segments and preferences. From its core offering of low-cost air travel services to premium services. For example, their 'Premium Flatbed' for long-haul flights, the airline ensures a range of options to suit different needs. Other than that, ancillary services such as in-flight offerings, cargo services, travel insurance, and loyalty programs like the 'BIG Loyalty' program further enhance the value proposition for customers. PRICING STRATEGY: Using a dynamic pricing model, the airline permits ticket prices to vary in response to demand, seasonality, and advance booking lead time. AirAsia effectively appeals to cost-conscious clientele and optimises financial gains through the combination of affordable base fares and ancillary revenue generation. Consistent promotional activities and flash sales engender a sense of urgency and engender demand, thereby facilitating the airline's achievement of seat occupancy during periods of reduced activity. PLACE STRATEGY: With its strategic hub locations and utilisation of secondary airports, AirAsia guarantees comprehensive coverage and passenger convenience through its extensive network throughout the Asia-Pacific region. The airline prioritises accessibility and streamlines booking processes through its strong online and mobile platforms. Elevated reach and accessibility are further enhanced through collaborations with regional carriers and a varied distribution network.
PROMOTION STRATEGY: AirAsia effectively integrates email marketing, social media, and online advertising into its promotional strategy to engage customers, highlighting the crucial role of digital marketing. Through sponsorships, sales campaigns, and strategic alliances, a brand's exposure and appeal to a broad spectrum of clientele are increased. Furthermore, promotional flight offers and events like The Big Loyalty Programme serve to generate value and stimulate demand. These are one of the factors why the brand stays relevant among frequent flyers in Malaysia and other countries. PEOPLE STRATEGY: As a company, one of the keys to success can thanked to its dedicated employees who put the needs of their customers first. Providing performance incentives, empowering employees, and launching training and development programmes are all necessary steps in building a culture of excellence and devotion. Participation in community events and CSR initiatives is one way the airline shows its dedication to the greater good and the happiness of its workers. PROCESS STRATEGY: Customer satisfaction and operational effectiveness are both enhanced by streamlined procedures like online reservation systems, self-service check-in options, and automated luggage drop-off. Continuous feedback integration and partnerships with service providers ensure smooth travel experiences, while sustainability initiatives emphasise the airline's commitment to environmental responsibility.
PHYSICAL EVIDENCE STRATEGY: There is hard evidence of the high quality and reliability of the AirAsia brand in the distinctive branding, cabin interiors, check-in counters, website interface, and in-flight amenities. It is proven that AirAsia show its qualities through branded items, safety cards, and staff uniforms, the airline always makes a point of showing that it cares about its customers' happiness, comfort, and safety. To sum up, AirAsia's comprehensive marketing strategy shows its dedication to providing customers with excellent service, convenience, and value while staying ahead in the aviation industry. AirAsia advances innovation, prioritises customer needs, and forms strategic partnerships that benefit both the airline and its customers to reshape low-cost carriers and air travel.
IV) THE MARKETING COMMUNICATION STRATEGIES VIA SITUATIONAL ANALYSIS AirAsia, a reputable low-cost airline with a presence in Malaysia and Southeast Asia, has attained significant success by employing persuasive marketing communication strategies that cater to its target demographic of budget-conscious travelers. By conducting a situational analysis, this section assesses the effectiveness and consequences of AirAsia's commercial communication tactics across various platforms. PRESENT MARKETING COMMUNICATION CHANNELS: AirAsia use a diverse array of marketing communication platforms to achieve this goal. These channels encompass a platform for promoting products and services through both online and offline means. They include an official website, a mobile application, and various social media platforms such as Facebook, Twitter, and Instagram. These channels play a vital role in facilitating consumer engagement, promoting services, and generating bookings. CONTENT ANALYSIS: The dedication of AirAsia to provide low cost, convenience, and passion is clearly demonstrated in the way its marketing communications are organized. Messages often revolve around special fares, travel discounts, and features of various destinations. These messages are conveyed in a casual and jovial style, effectively connecting with the intended audience. AirAsia's brand identification and customer loyalty are strengthened by the relevance and consistency of its content across all communication channels. SOCIAL MEDIA ENGAGEMENT: AirAsia maintains active profiles on prominent social media platforms to foster engagement with its followers by disseminating intriguing content, promotions, and updates. Brand exposure and engagement are significantly increased through the utilization of interactive campaigns and user-generated content, which stimulate social sharing and community participation.
CUSTOMER RELATIONSHIP MANAGEMNT (CRM): Prioritized by AirAsia's CRM initiatives are customer loyalty and personalized communication. The airline successfully cultivates enduring customer connections and promotes recurring bookings through the implementation of focused email marketing initiatives and its customer loyalty program, BIG Loyalty. This is accomplished by offering customized incentives and rewards. CRISIS COMMUNICATION: It is an essential domain in which AirAsia exhibits commendable timeliness and openness. The airline ensures prompt communication with customers regarding inquiries and delivers expeditious updates in the event of unforeseen circumstances, including flight cancellations and delays. By means of a diverse range of communication channels, including public relations initiatives, direct communication, news releases, and social media, the airline effectively preserves consumer confidence and protects its standing. INTEGRATION OF TRADITIONAL AND DIGITAL MARKETING: AirAsia effectively combines traditional marketing channels with digital activities to provide a cohesive brand experience. Aside from web advertising, the airline's messaging is reinforced through other touchpoints such as television commercials, print marketing, and sponsorships. MEASUEMENTS AND ANALYTIC: AirAsia use sophisticated analytics methodologies and key performance indicators (KPIs) to assess the efficacy of its marketing communication endeavours. To optimise performance and increase return on investment, many metrics such as website traffic, social media engagement, and conversion rates are examined.
COMPETITIVE BENCHMARKS: AirAsia conducts a systematic assessment and comparison of its marketing communication strategies with those employed by its competitors in the industry. This study involves an examination of advertising campaigns, strategies for engaging with customers, and the way a brand is positioned. This investigation enables the identification of opportunities for differentiation and enhancement. PROSPECT AND BOUNDARIES: AirAsia could enhance its marketing communication tactics using developing technology and by expanding into new markets. However, the airline also faces significant challenges such as intense competition and strict regulatory limits. By strategically resolving these impediments and capitalising on advantageous circumstances, AirAsia can strengthen its position in the aviation market.
V. MAJOR COMPETITORS OF AIRASIA AirAsia encounters significant challenges from domestic airlines competing for market dominance and customer allegiance in the dynamic and competitive Malaysian aviation sector. 1. Malindo Air: A Hybrid Competitor Malindo Air is a prominent competitor to AirAsia in the Malaysian aviation business. Malindo Air offers an attractive option for travellers who want budget without sacrificing comfort and amenities by combining the features of a full-service and low-cost carrier. Malindo Air has developed a comprehensive network of routes within Malaysia and throughout Southeast Asia, effectively challenging AirAsia's presence in both domestic and regional markets. This has been made possible by establishing a key hub at Kuala Lumpur International Airport (KLIA). AirAsia's market domination in Malaysia is significantly challenged by the airline's affordable pricing, seamless connections, and in-flight services, which include entertainment and complimentary meals. 2. Firefly: The regional subsidiary of Malaysia Airlines. Firefly, the regional division of Malaysia Airlines, is another significant competitor for AirAsia. Firefly operates mostly from Sultan Abdul Aziz Shah Airport (Subang Airport) and focuses on providing short-distance flights inside Malaysia and to nearby countries including Singapore, Thailand, and Indonesia. Firefly targets a distinct market segment compared to AirAsia, yet its emphasis on dependability, comfort, and regional accessibility poses a significant competition to AirAsia's domestic services. Firefly directly competes with AirAsia on domestic routes in the Malaysian aviation sector, providing travellers with an appealing option with its flawless connections and affordable pricing.
3. The Group of Malindo Airline (Batik Air Malaysia): Enhancing the Competition Batik Air Malaysia, a subsidiary of the Malindo Airline's Group, has emerged as a formidable competitor in the AirAsia market. Batik Air Malaysia operates as a comprehensive carrier, offering a combination of affordable fares and high-quality services that attract travellers who desire a harmonious blend of cost-effectiveness and comfort. Benefiting from its parent company's abundant resources and large network, Batik Air Malaysia engages in fierce competition with AirAsia on both domestic and regional routes, providing travellers with an attractive value proposition. The airline's dedication to providing exceptional service, along with its competitive pricing, presents a significant obstacle to AirAsia's market dominance and brand positioning in Malaysia
VI) THE EFFECTIVENESS OF A MARKETING COMPETITION STRATEGY IMPLEMENTED BY THE BRAND To assess AirAsia's marketing competition strategy's efficacy, we must consider a few different facets of their business strategy and how they affect their reputation, competitive edge, and financial results. Here is the breakdown: POSITIONING IN THE MARKET Furthermore, AirAsia's marketing competition approach has been extremely effective in establishing the travel company an influential leader in the low-cost carrier sector, particularly in Southeast Asia. Their emphasis on low prices, accessibility, and creativity has allowed them to successfully compete against cheaper carriers alongside traditional airlines, gaining a substantial market share. By reaching out to markets that are underrepresented and focusing on budget-conscious travellers, they have effectively expanded their paths and locations to keep up with rising demand. BRAND EQUITY Over time, AirAsia's marketing competition strategy has helped to strengthen the value of its brand. Its memorable slogans, "Now Everyone Can Fly" and "Dream the World, Fly with Us," have grown to be associated with affordability and availability, appealing to a wide range of consumers. AirAsia has additionally established a favourable image in the market by repeatedly delivering on the company's pledge of low fares and high-quality service. THE FINANCIAL OUTCOME The financial success of AirAsia is indicative of the efficacy of their marketing competition strategy. AirAsia has continuously stated strong revenue expansion and profitability, even
though it operates in an extremely competitive sector with narrow profit margins. Plus, their revenue generation has been aided by their capacity to draw sizable passenger volumes through competitive rates and focused marketing initiatives. Hence, their economic situation has also been strengthened by ancillary sources of revenue from amenities like seat choice, during flight meals, and travel luggage fees. SUSTAINABILITY AND LONGEVITY Moreover, AirAsia has faced many challenges overtime including the ups and down or fuel prices, legal coercion, and economical diminution. Despite all these that are happening, AirAsia has been able to prolong permanence and survivance because of their outstanding marketing plan. Their emphasis on cost reduction, productivity in operations, and customer satisfaction has allowed them to weather market downturns and recover better. Additionally, because of AirAsia's proactive approach to addressing environmental issues and executing ecologically conscious processes, such buying fuel-efficient planes and taking part in emissions reduction programs, customers now perceive the airline as responsible and advanced. CONVERSION RATES The proportion of internet users or marketing recipients who complete a desired action, like booking a flight or subscribing to a newsletter, is known as the conversion rate. AirAsia wants to turn consumer interaction into concrete actions that increase sales. By implementing focused marketing campaigns, customized deals, and expedited reservation procedures, AirAsia aims to enhance conversion rates and augment revenue production. Conversion rate KPIs can include measures like the average profit per user (ARPU), rates of clicks through on advertising efforts, earnings per investment (ROI) from advertising campaigns, and the rate of conversion for online bookings. AWARENESS OF BRAND Consumers that can recognise and remember a trademark is called brand awareness.By using marketing communication, AirAsia has had great success increasing brand awareness. In the airline business, their memorable catchphrases, "Now Everyone Can Fly" and "Dream the World, Fly with Us," have gained recognition and are now connected to accessibility and
affordability. KPIs for awareness of a brand could include metrics from online platforms suggesting reach and perceptions, as well as questionnaires or investigations assessing the association of a brand among target audiences. CONSUMER ENGAGEMENT A good indicator of a customer's level of involvement and connection with a firm is engagement. Via the company's website, smartphone app, and social networking profiles, among other online venues, AirAsia constantly interacts with its customers. Plus, to build an atmosphere of connection and loyalty among their audience, they run interactive campaigns, answer questionnaires, and offer travel advice. The metrics like internet traffic, amount of time spent on online social media involvement (likes, comments, and shares), and enrolment in loyalty or promotional programs are examples of key performance indicators (KPIs) for customer satisfaction.
VII) CONCLUSION In conclusion, Air Asia's Berhad's outstanding achievement in the aviation sector can be primarily attributed to its creative approach and potent communication style. Air Asia has not only revolutionized the air travel landscape in Asia and beyond, but it has also been able to win market share through targeted marketing techniques and activities. Air Asia's marketing strategy was founded on the promise to provide reasonably priced airline tickets while upholding a high standard of customer care. by presenting itself as an inexpensive airline. With success, Air Asia has entered a brooder market segment of frugal travellers who appreciate excellent experiences and service. In essence, Air Aisa's helps the airline stand out in a very competitive market and develop a solid rapport with passengers. Air Asia’s communication strategy is characterized by transparency, clarity and consistency. The airline prioritizes open communication with customer, keeping them informed about flight schedules, promotion and safety measures through various channels including email newsletter, SMS notification and mobile apps. By providding timely and relevant information, Air Asia enhances the overall customer experiences and instills confidence in its service.
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