KMC6203 MARKETING COMMUNICATION STRATEGIES TRIMESTER 2, 2023/2024 SESSION (T2410) ASSIGNMENT 1: LOCAL COMPANY MARKETING STRATEGY COMPANY: MALAYSIA AIRLINES PREPARED BY: STUDENT NAME STUDENT ID 1. HAIKAL DANIAL BIN HUZAIRY 1221303427 2. BURAN RAYHAN ZULKASI 1221302501 3. MEGAT ZIQRI FIRDAUS BIN MEGAT MOHD YATIM 1221303136 4. LOONG YE HAN 1211312006 SECTION: FAC 1 SUBMITTED TO: NURAFIQ INANI BINTI MAN ASSIGNMENT SUBMISSION DATE: 5 MAY 2024
INTRODUCTION Malaysia Airlines Berhad (MAB) is one of the most prominent airlines in Malaysia, and its name is sung globally as well. Founded in 1947, it was originally known as Malayan Airways Limited and flew its maiden flight. With a rich history spanning over several decades, Malaysia Airlines Berhad has established itself as a distinguished airline renowned for their exceptional service and safety. Their motto “Going Beyond Expectation” is what kept them going for decades and has won them many awards. As a member of both Oneworld Alliance and Malaysia Aviation Group (MAG), MAB offers its passengers seamless journeys across 1000 destinations worldwide including North America, Europe, the Middle East, Asia, and Australasia. In recent years, MAB has embraced the digital world by creating an efficient and intuitive website to enhance customer experience. With a substantial investment and effort put into its digital infrastructure, MAB has made its official website the cornerstone of its digital strategy. Their website has a simple and clear layout, making it easy for customers to navigate through it without technical difficulties. Everything that is needed by the customers – booking, planning, services, check-ins – are all there with a few clicks. MAB encourages customers to explore their website to discover how straightforward it is to explore their website to manage their travel needs online.
COMPANY MARKETING STRATEGY Figure 1: A Malaysia Airlines Berhad poster, reading: “This is Malaysian Hospitality”. As a company that provides an essential service (transportation) to both local and international markets, and as Malaysia’s “flagship” carrier (i.e., an airline that is owned by its local government and/or carries the name of a country in its branding), Malaysia Airlines Berhad (MAB) has a responsibility to represent Malaysia positively in the aviation industry. As such, the company requires a marketing strategy that not only appeals to a wide range of geographical markets, but also reflects a positive overall image of Malaysia. MAB’s vision is to become an “An Airline of Excellence”, that is, an airline that is able to offer customers the best in service and comfort throughout the flying experience. This vision can be seen primarily through the “Malaysian Hospitality” concept. “Malaysian Hospitality” is, in essence, a marketing tactic that acts as MAB’s brand identity: one that is warm and friendly, much like the Malaysian people. As MAB states on its website, “Malaysian Hospitality: It defines who we are – as an airline, and as a nation”. MAB has made efforts to conduct digital marketing, most noticeably through social media platforms. On Facebook, MAB has quite a substantial following, garnering 2 million followers and 2 million page likes. Similarly, MAB has managed to gain 1.7 million X (formerly Twitter) followers, and 623 thousand Instagram followers. Overall, these statistics show that MAB is wellrecognized amongst netizens and the wider general public, standing out as an important brand in Malaysian society.
BRAND MARKETING MIX Like any other business, MAB utilizes the entire marketing mix approach to operate its business effectively without any faults. MAB’s marketing mix is outlined by the classic 4Ps elements – products, price, place, and promotion – as they aim to provide the full experience of offering great services and products to its customers. PRODUCTS In terms of the products they offer, it is designed to meet every and any customer’s preferences and needs. Like any other airline, MAB has prepared three flight classes. Firstly, their Economy Class is the budget-friendly class where it is targeted towards those who are looking for an affordable flight. It offers a more practical way to travel in the air, as it is the most popular choice for budget-conscious customers and for those who travel a short distance while still upholding their value of offering services with a friendly and hospitable approach. Secondly, their Business Class is an upgraded version in which the comfortability, services and amenities are more elevated. Before setting foot into the airplane, customers are directed to their own exclusive lounge. Business Class provides more spacious seating, and the cabin crew are more attentive, redefining the flying experience. Aside from that, they also have a “Chef-onCall” to serve them a fine dining experience in the air. This elevated experience is targeted towards those who are looking for a premium service. Lastly, MAB’s Business Suite is their version of First Class as it epitomizes a luxury experience on air. This class typically offers private seating with doors and ample space as customers can make their seats into a flat bed. The services are much more enhanced as every customer is greeted and serviced by their own personal crew cabin that caters to their every need. Other than that, any other services are the same as business class like “Chef-on-Call”, exclusive amenities, luxurious lounge, and expedited boarding experience. This class sets a new standard for how a first class should operate. Customers who value efficiency and privacy are usually the ones who tend to opt for this luxurious class.
On top of their distinguished selection of classes, Malaysia Airlines Berhad offer other arrays of products tailored to accommodate every customer. Among the products, three that stand out the most are Malaysia Airlines Holidays, Enrich loyalty program and MASkargo. First, Malaysia Airlines Holidays is a service which allows customers to book their flights in a full holiday package, combining both flights and accommodation, prioritizing efficiency, and convenience. An array of travel destinations and packages are offered for customers to choose from. Apart from that, their Enrich loyalty program is MAB’s preferred style to reward their loyal customers who often fly with them. Those customers may redeem their rewards and have the privilege to enjoy priority service like lounge access, priority check-ins and class upgrades. Finally, MASkargo is a shipping company, a subsidiary of MAB. Their top-notch customer service and fast delivery is commendable amongst other shipping companies. MAB is unique in this category as they are still primarily an airline company who also does shipping. PRICE Malaysia Airlines Berhad implements a fair pricing strategy in which they use both dynamic pricing and value-based pricing to effectively place itself in the market. Using the dynamic pricing approach, the airline adjusts prices in response to demand, seasonality, competition, and booking trends. This way, they are able to maximize their revenue and remain competitive. On the other hand, value-based pricing is a strategy whereby prices are set in accordance with the perceived worth of the services provided, including amenities, quality, flight, and recognition of the brand. The pricing for the Economy Class, Business Class and Business Suite differs greatly, as all three classes offer a diverse range of services, quality, and comfort level. Other than that, one strategy that all airlines use is ancillary services and Malaysia Airlines Berhad is not excluded from using it for their leverage. This flexible strategy helps MAB generate extra revenue while greatly enhancing customer satisfaction. When it comes to MAB, they have a diverse range of ancillary services for customers to pay for like fees for additional luggage, seat options (premium seats or seats with extra room), priority boarding, in-flight meals, Wi-Fi access and travel insurance. The final fee that customers must pay differs depending on what services they are paying for, so it is not a fixed fee. After determining the perceived value and the
willingness of customers to pay, MAB may choose a price that appropriately represents the service value. Instead of merely paying expenses and adding a typical profit margin, the objective is to obtain a share of the whole value provided for the customer. PLACE Malaysia Airlines operates across an abundance of countries on different continents like North America, Europe, the Middle East, Asia, and Australasia. As a part of the Oneworld Alliance, MAB also has hubs over at Sydney, Tokyo Narita, Hong Kong, London Heathrow, and Los Angeles. Meanwhile in Malaysia, MAB’s main operating hub is Kuala Lumpur International Airport (KLIA), acting as a vital “string” that ties together different locations and transits. Their secondary hubs are at Kota Kinabalu and Kuching, further expanding their dominance as the head honcho of the aviation industry. As Malaysia’s flagship carrier, they manage seamless journeys domestically and internationally for any who are looking to travel freely across the world. Moreover, MAB already has an established, robust website dedicated for customers to freely browse. Its purpose is to make it easy for modern customers who value digital structures to manage their bookings, flight status and check-ins, rather than going physically to the reception table and facing a long process. This solution helps save time and energy and it inspires customers to browse their website for a more relaxed booking experience. PROMOTION Malaysia Airlines frequently participates in advertising enticing campaigns and products and all of them are featured on their website, which makes it accessible for anybody to have a look. A lot of the promotions offer discounts to different countries. As an example, the latest package includes locations such as the Maldives, Chiang Mai, and Da Nang, which sits at an attractive price of less than RM1000, all-in one-way. MAS makes everybody’s dream of travelling come true by making these destinations budget-friendly and not hurting their wallets. This is a fruitful strategy as it fosters exploration and discovery of many countries and cultures, as well as promoting tourism.
In other respects, MAB has done countless partnerships and collaborations with other prominent companies. Recently, there was a collaboration between MAB and Samsung, in which customers are able to earn “EnrichMoney” points on their Enrich loyalty program and win a Samsung Galaxy Tab S9+. Additionally, as an airline company, MAB is also wise to collaborate with tourism agencies to encourage tourism and forge connections. One tourism agency that has been on good terms with MAB is the Sabah Tourism Board (STB) and they are actively co-creating more plans and promotions that mutually benefit both sides. Utilising strategic partnerships with widely recognised tourism agencies nurtures more travelling experiences as it creates bespoke itineraries that resonate with customers’ wishes. These partnerships create a tapestry of unmatched hospitality and cultural enthrallment, inspiring a yearning for travel. Every collaboration is evidence of MAB's dedication to shaping travel as an art form, creating deep relationships, and opening up a world of opportunities for all travellers.
MARKETING COMMUNICATION STRATEGIES VIA SITUATIONAL ANALYSIS Using the SWOT analysis technique, a thorough evaluation of Malaysia Airlines Berhad’s marketing communication strategies was created. STRENGTHS 1. Brand Recognition Malaysia Airlines Berhad is a nationally and internationally recognized brand. Malaysia Airlines ranked 47th in Skytrax’s World Airline Awards “Top 100 Airlines” in 2023, making it one of the premier airlines in the world. 2. Brand Reputation Legitimized Through Awards Malaysia Airlines has been awarded multiple awards throughout its history. Some examples of awards MAB have won include the “Putra Brand Icon” award for the year 2020, and
gold awards for “Excellence in Viral Marketing” and “Excellence in Content Marketing” at the Marketing Excellence Awards 2022. These awards have helped to legitimise Malaysia Airlines’ standing in the aviation industry, creating an image of a reputable brand for consumers. 3. Bearer of “Malaysian” Identity The airline wields the title as Malaysia’s national carrier, which allows the brand to be attached to the country’s national identity. Through this connection, and MAB’s use of the “Malaysian Hospitality” concept, Malaysia Airlines is able to maintain relevancy in discussions of Malaysia, acting as an important brand for the country. WEAKNESSES 1. Low Social Media Engagement Despite having a high number of followers on all their social media platforms (Instagram, Facebook, Twitter, etc.), engagement on these platforms lags in comparison. For instance, on Instagram, posts on average only receive 1000 to 2000 likes, with some posts middling at less than 500 likes. This is in comparison to their Instagram follower count of over 600000. This shows that, despite having many followers, a vast majority do not actively engage with Malaysia Airlines’ social media content on a frequent basis. 2. Competition from Low-Cost Carriers As a “luxury” airline, Malaysia Airlines has had to face stiff competition from low-cost carriers in the Southeast Asia region. A notable competitor is AirAsia, who ranks 31st in the aforementioned “Top 100 Airlines” list by Skytrax. The airline has been able to succeed in multiple countries due to their ability to cater to those who seek to travel without breaking the bank, and their strong brand image and marketing.
3. Cultural Impact of MH370 Internationally, Malaysia Airlines’ brand image is still reeling from the effects of MH370. A full decade after the flights’ disappearance, MH370 is still the subject of mass speculation and conspiracy theories. Even in casual social sphere, MH370 has managed to remain relevant, with online scandals such as Jocelyn Chia’s infamous joke about MH370 going viral in June 2023, leading to revivals of online discussions and news reports on MH370. It is clear that Malaysia Airlines may never be able to fully detach itself from the incident. OPPORTUNITIES 1. Backing from Malaysian Government Malaysia Airlines Berhad is fully owned by Khazanah Nasional, a sovereign wealth fund belonging to the Malaysian Government. The Malaysian Government thus has a keen interest in ensuring Malaysia Airlines’ continued success. 2. International Expansion After cutting many of its international routes in the previous decade and declaring bankruptcy in 2014, Malaysia Airlines is still in the midst of rebuilding itself. However, there is a great opportunity for MAB to restore its former destinations, especially with the upcoming arrival of new aircraft such as the Airbus A350-900. The airline had already previously announced the revival of routes to Malé, Maldives, Chiang Mai, Thailand and Da Nang, Vietnam, and with a new fleet of aircraft arriving soon, the opportunity to expand is present. 3. Marketing of Subsidiaries Firefly and MASWings, two subsidiaries under MAB serving local destinations within Malaysia, has the opportunity to gain popularity with an increase in marketing efforts, introducing
them as viable competitors to giants such as AirAsia, instead of acting as mere supplementary services to the main airline. THREATS 1. Scandals Scandals are not a new concept for Malaysia Airlines. An incident last year aboard MH122, where a man threatened to bomb the flight, is yet another incident to add to a history of rocky moments for the airline. Malaysia Airlines must do its best to avoid another public relations disaster to the level of MH370. 2. Natural Disasters in Southeast Asia Recent volcano eruptions in Indonesia have caused flight cancellations in East Malaysia, including Malaysia Airlines’ flights. This can cause frustrations within consumers, whose plans had been disrupted. Malaysia Airlines must be careful in managing customer relations during situations like these. 3. Rising Costs of Living Consumers have been greatly affected by the general rise in costs of living, and as such, will tend to seek cheaper options where possible, including in air travel. Malaysia Airlines must work to ensure that its product will continue to be valued by consumers.
MAJOR COMPETITORS Malaysia Airlines, despite its features and USPs does not exempt them from having its own competition with other airlines. These airlines competed Malaysia Airlines in certain aspects which would jeopardise Malaysia Airlines' position in the market. The competitors include are 1. AirAsia AirAsia competes with Malaysia Airlines directly in terms of low-cost airlines. It is made even worse as AirAsia also has a sister branch called AirAsia X which specialises in long haul budget flights which could put a serious dent on Malaysia Airlines competitive edge on the low cost airline market. Currently, AirAsia holds a higher global ranking and country ranking compared to Malaysia Airlines in a large margin despite AirAsia also experiencing the same flaws as Malaysia Airlines. 2. Singapore Airlines Singapore Airline competes with Malaysia Airlines in terms of the distance they cover when it comes to offering their services. Singapore Airlines is an airline that is also based out of its country which is Singapore which means that this allows them to cover a wide array of global destinations. Not to mention that Singapore Airlines is also known for its great customer service and excellent services in flight. Both airlines are similar in regards to both of them being funded heavily by their respective government but these aspects might give Singapore Airlines its competitive edge over Malaysia Airlines.
EFFECTIVENESS OF MARKETING COMMUNICATION STRATEGIES Malaysia Airlines Berhad (MAB) has developed a multi-layered marketing communication strategy that makes use of a range of media to engage its target market and accomplish its corporate goals. To better understand this strategy's effectiveness, let us take a closer look at its advantages, investigate its online presence, assess its marketing initiatives, and recognize the opportunities and problems it faces. Thanks to two major advantages, MAB's marketing operations have a solid base: reputation and brand familiarity. Being Malaysia's national carrier, MAB has a strong level of brand recognition, which helps to establish its reputation as a reliable brand in the aviation sector. Its marketing campaigns benefit from this recognition, which guarantees a degree of exposure that many rivals might find difficult to attain. Moreover, MAB has always maintained a reputation for providing outstanding service and safety. This brand's favourable reputation builds confidence and draws tourists looking for a dependable and relaxing vacation. Travelers may relax knowing that they will always receive courteous and competent service (Rajan, 2012). Through social media, their brand recognition is a surefire hit as their easily recognizable logo and aesthetic contribute greatly to the effectiveness. One look at it and customers will decide to go with MAB instead of other airlines. By infusing the idea of "Malaysian Hospitality" into its marketing approach, MAB offers more than just transportation. This idea successfully connects emotionally with potential clients by utilizing the warmth and friendliness associated with Malaysian culture. When tourists purchase a plane ticket online, they are also investing in a travel experience that epitomizes Malaysian hospitality (Mat Zaid, 1994). With this USP, MAB stands apart from rivals who might only be concerned with efficiency or pricing. Even though MAB uses "Malaysian Hospitality" as a strong differentiation, social media platform can be better in regard to this element and can increase the influence of this brand further. For example, sharing Facebook or Instagram videos showing amiable encounters between passengers and cabin crew can foster the idea of "Malaysian Hospitality".
Although MAB's user-friendly website is a model of online convenience, there is still room for improvement in terms of interaction on its social media presence. Consider creating engaging content that is tailored to each network, rather than just being present on Facebook, Instagram, and X (previously Twitter). Organize live Q&A sessions with cabin crew on Instagram Live to give prospective clients a chance to ask questions and get a personal look at the "Malaysian Hospitality" that they may expect. Utilize social media analytics to make travel offers and location suggestions unique to each user, resulting in a more interesting and pertinent experience. Actively reply to messages and comments to show that you are attentive and to foster brand loyalty by providing courteous, timely customer service. MAB uses a range of marketing techniques to draw clients and pique their interest in traveling. They provide alluring deals and packages to a range of locations, lowering the cost of travel for those on a tight budget. This tactic works especially well at attracting the expanding number of tourists looking for affordable opportunities to extend their horizons and experience other cultures. Imagine being able to discover an amazing Maldives holiday package at an unbelievably low cost—that is the kind of opportunity that MAB promos may offer (Rajan, 2012). Moreover, MAB makes use of strategic alliances with businesses such as Samsung and travel organizations like the Sabah Tourism Board (STB). Through these partnerships, MAB reaches a wider audience and offers clients distinctive travel experiences. By collaborating with a wellknown electronics company like Samsung, you may give clients the opportunity to accrue loyalty points when they book their trip. By working with a travel agency, MAB can provide carefully chosen holiday packages that fit certain interests and price ranges. Customers benefit from these strategic alliances, which expand the travel ecosystem to include more options. The social media reach of MAB is greatly increased through strategic alliances. Through strategic alliances on social media, interactive content creation, and audience involvement, MAB is effective in turning its social media presence into an effective instrument for building brand recognition, fostering customer loyalty, and eventually driving up ticket sales. Overall, the effectiveness of MAB’ marketing communication strategies is mostly effective and sufficient, but there is still a lot of room for improvement to truly take MAB to the next level compared to other airlines in the international scene.
CONCLUSION Malaysia Airlines (MAB) has devised a comprehensive marketing communication plan that leverages its advantages and considers the intricacies of the contemporary aviation sector. But this strategy's digital presence is its main component. MAB's marketing initiatives are well-founded by its well-known brand and stellar reputation for reliability and safety. Through the incorporation of warmth and friendliness throughout the travel experience, both online and offline, the concept of "Malaysian Hospitality" sets MAB apart even more. A user-friendly website is the cornerstone of MAB's digital strategy, and this good brand image translates to the digital arena with ease. Modern travellers expect a simple and quick online experience, and this website enables booking, management, and access to travel information in a seamless manner. But by making even greater use of this digital platform, there's potential for expansion. Creating interactive content and focusing social media campaigns can increase brand recognition and build closer ties with consumers. To engage its audience, MAB can leverage digital media through many means such as creating personalized travel recommendations through interactive quizzes or creating captivating posts on social media that highlight the "Malaysian Hospitality" experience. The competition from low-cost carriers is one issue that the digital platform can effectively address. MAB can target client segments and personalize promotions on its website and social media platforms by leveraging data analytics. The value proposition of MAB may be clearly communicated through targeted web advertising, emphasizing the company's reputation, exceptional service, and comfort. Convenience and customer engagement could be further increased by creating a mobile app that is easy to use and enables travellers to manage reservations, access information, and even investigate exclusive deals while on the road. Given the circumstances, MAB's marketing communication plan has a solid basis and some encouraging components. MAB can maintain its position as the top airline in the area by building
on its advantages, particularly its digital platform, and adjusting to a changing environment. Travelers who care about the environment may also be drawn to the digital platform by emphasizing sustainability projects. Furthermore, a consistent consumer experience across all digital touchpoints can be fostered by establishing a smooth interface between the website, mobile app, and social media presence. MAB can position itself for sustained success in the dynamic aviation sector by consistently keeping the client at the core of its digital strategy. Travel will become more digital in the future, and MAB is well-positioned to benefit from this trend by offering a customer-centric experience that goes above and beyond.
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