Contingencies to Airasia’s Marketing Strategy Essay
Suggest three contingencies AirAsia should consider and rationalize your decision. What are the main modifications to the present marketing strategy should certainly AirAsia take on to respond to contingencies. You will discover number of risks that AirAsia faces as a result it should possess well-prepared a contingency plans in the event certain circumstances occur.
The subsequent part concentrates on analyzing three main eventualities that AirAsia should take into consideration as well as the modifications to the current online marketing strategy that it would have to make to respond in case specific events take place. What if price war happens… To compete with the rivals, every airline introduced its own strategy. Famous full service providers like Singapore Airlines and Thai Air passage have set up low cost subsidiaries. Malaysia Airlines launched competitive promotion structure while impartial low-cost air carriers like Valuair focused on improving customer providers through giving additional benefits to clients. Obviously, the harsh competitiveness in the area strengthens the probability that price war might happen.
Price war happens when just about all airline businesses simultaneously learn to reduce their very own prices plus the region’s flying industry overall fails to deliver profit. Selling price war might have a serious influence on AirAsia whether it, together with different airlines in the area, starts to decrease its rates to remain competitive. Customers now will have several choices and would be able to in order to the air carriers that offer them the best price as well as best services. If cost war actuall does occur, AirAsia should make the subsequent modification to its current strategy: Enhance customer satisfaction simply by improving on-flight service top quality as reviewed in depth inside the third section of query one.
Imagine if customers opt to switch to different airlines… Atmosphere Asia now has to face program increasing competition not only via low cost subsidiaries of full service carries but likewise from the breakthrough of independent low cost air carriers. With the elevating emergence of recent airlines which provide customers with not merely low costs but also “a amount of service significantly beyond that expected”, the probability that customers go for other airlines is very substantial. Recently, AirAsia has been acquiring many grievances from passengers who will be unsatisfied while using service top quality.
Focusing intensively on keeping costs low, AirAsia neglected the fulfillment and convenience of its consumers. Thus, the business should consider the possibility that customers may switch to other airlines. In this instance the following changes to the approach should be built: AirAsia will need to offer offers for the customers to stay with all the company by introducing regular flyer benefit miles. To motivate customers’, AirAsia could also offer membership cards which will would provide them not only with additional kilometers but in addition to regular customers’ discount upon specific plane tickets to specific destinations or at unique period of time.
What happens if AirAsia is unsuccessful in entering new markets including China and India… AirAsia is now trying to find expanding paths to other countries in the area and China and tiawan and India are a enormous potential. However , these market segments have totally different economies and thus there is a probability that the marketplace will not support a new flight. Also, for example , when going to China – a huge market, AirAsia should be ready to deal with tough competition. Besides good status in the market, well-established airlines in China including China Flight, Cathay Pacific, etc . are providing very high quality service to customer.
Moreover in the meantime, AirAsia has to take on many hard competitors in the local marketplace. Thus, there exists possibility that AirAsia may not take the lead when entering new market segments and might not be able to reach the targets in new market segments. Therefore , AirAsia should take into mind the possibility of low demand and stay ready to help to make modifications to its technique in order to respond: The Olympic Games 2008 would be a great opportunity for AirAsia to strengthen its graphic in customers’ mind.
To take this edge, AirAsia should certainly organize a lot of activities in promoting the company. Additional big companies will surely promote by itself through taking part in such activities because Olympic Sponsorship, On-Air advertising campaign, etc . AirAsia should pick a different technique. Instead, it could create relationship between AirAsia and the Olympic through applications spread by way of mass media including: design logo for AirAsia used during the Olympic period or coordinate a lottery program the prizes of which would be Olympic tickets or flying tickets inside Cina.
AirAsia can also use various other promotion courses like offering round trip tickets traveling to urban centers where the Video games would occur at the selling price of 1 reminbi (Chinese currency) for the first 12 customers obtaining tickets by a arbitrary period of time during 6 months prior to Olympics. This should help build-up the demand for AirAisa’ services among the consumers and enhance its position in customers’ head. To conclude, it is necessary for AirAsia to be aware of all contingencies which may happen during its procedures and to prepare yourself to apply alterations to the strategy to protect by itself from any kind of possible problems that might occur.
These contingencies may not come to truth but it is vital to have a contingency plans and also to be able to generate necessary adjustments to the strategy in case of the purchase price war, or perhaps lost with the customers, or difficulties going into the new marketplaces in order to adapt to these changes and still operate effectively.