CBEB 2316 E-MARKETING Company Analysis : AIR ASIA BHD

Mohd FarhanChia Lee Wan Nur Fadhilah Umi Zafirah

Presentation Outlines Overview of Internet properties Benefit, cost and value creation Customer Characteristics and Branding strategy Website analysis Business model E-Marketing metrics Recommendations

Overview of Internet Properties

Website analysis

Web content

Website properties Global reach Time moderator Information equalizer Task automation

Website design and Usability

Figure 1 : Air Asia official website

Benefit, Cost and Value CreationCustomer Experience

Creating a Positive Customer Experience - An interaction between an organization and a customer as perceiver through a customer’s conscious and subconscious mindsetting low air travel price by Air Asia- offered low fares without compromise the quality of air travel servicescreated their first loyalty program -biggest ever loyalty program, simply called BIG-earn points for every transaction-enjoy the priorities of booking, special offers and has the chance to redeem free flightscome out with mobile phone app -can access to Air Asia website by using their mobile phone- consumers can self check-in by using their mobile phone after downloaded the apps for free

Figure 2: Air Asia Mobile Apps

Benefit, Cost and Value CreationGive lowest price of air flight service to customers-compared to other airline company such as Malaysia Airlines (MAS), they offered at higher air flight rate

Air Asia Insure Travel Protection-protection includes flight cancellation or curtailed or delays, loss of luggage, personal accident, accidental medical reimbursement, and evacuation expenses

Creating airasiago.com-customer book for 5 star hotels at 3-star rate which is guarantee as lowest price compared to elsewhere online-will refund the price difference if customers are able to find lower rate at the same period for the same hotel booking

Collaborated with other banks -DBS bank in Singapore to launch a new MasterCard credit card -Citibank in Malaysia-Benefit of discount

Benefit, Cost and Value CreationInternet Marketing Mix

Products- internet helped Air Asia to increase customer benefits - world’s first airline SMS booking - Air Asia also provides ticketless service (cost-reduction)- cost-reduction as the company allows Internet bookingPrices- Air Asia is a well-known low cost airline in Asia-target customers from various income levelsPromotions- Promotions act as marketing communication- Sponsorships ( e.g : QPR and Australian Moto Grand Prix)- Online promotion is way how Air Asia reduces costsPlaces (Distribution)- Place or distribution is about delivers the services or goods to the customers- connecting people and places across 132 routes and covered 65 destinations in 18 countries

Benefit, Cost and Value CreationCustomer Relationship Management

•The process of targeting, acquiring, transacting, servicing, retaining and building relationship with customers• Allows the company to predict customer purchase behavior with the support of information technology and customer database.•Ensuring that the customer has an opportunity to speak with the company-Self-service software in social media network- Facebook, Blog and Twitter•Social Customer Relationship Management-to create direct route of contact with their customers

Consumer Characteristics and Branding StrategyBranding consistency: Online & Offline strategy

ONLINE OFFLINE

• sponsorship of global brands - e.g : QPR and the Williams Formula 1 racing team

• uses online facilities for reservations and payment of fares

• advertising in the print media - e.g : newspaper to advertise their new promotions or travel packages

• introduce Short Messaging System (SMS) to book seats

partnership with Citibank to introduce Air Asia-Citibank Credit Card

Consumer Characteristics and Branding StrategyEnvironmental, Situational & Personal factors

• Condition of the country - e.g : earthquake,H1N1

• Political environment - perception of the environment in the country - obtained from any approach like newspaper, television, radio and internet

• Personal factors - peer influence Air Asia has to maintain its good brand image, supply good quality services at affordable prices - Income level think of budget travel plan e.g : those with high level income can purchase premium class air flight tickets

Consumer Characteristics and Branding StrategyMarket Segmentation

MARKET SEGMENT DESCRIPTIONS

Price-conscious business passenger

This segment of customers prefers low air fares because their main concern is to obtain as lowest price as possible

Quality-conscious business passenger

This segment of customers prefers full services airlines such as on-board services

Long- haul Air Asia X is created in order to serve this group. Air Asia X Premium Flatbeds designed for those looking for comfort seat.

Short-haul Short-haul customers prefer efficient and effective booking, check-in service and short boarding time.

Consumer Characteristics and Branding StrategyBrand Positioning

• Using a tagline “Now Everyone Can Fly” - the customer will always easy remember about the low cost of the Air Asia provide

• Targeting individuals who looking for air travel services at affordable price - offering lowest airfare and widest network of destinations in Asia.

•Clear logo - clear written in big red cursive letterings against a white background - Located at the bottom of the logo is the tagline ‘Now Everyone Can Fly”

• classical type of customer

• difficulty to make a booking date of the flight

• take a lot of cost - cost of traveling to airport

• save the cost - just clicking in the Air Asia website

• enjoy using the online - ask about the schedule of air traveling through online, make a payment through online, and also print out the ticket through online

• easiest way to get the information

Consumer Characteristics and Branding StrategyOnline & Offline customers

Website AnalysisCurrency

1.Credit card

Visa All currencies

MasterCard All currencies

Amex MYR, THB, USD, AUD, SGD, BND and HKD

JCB JPY

Website AnalysisCurrency

2. Direct debitMalaysia Ringgit Maybank2u, CIMB Clicks Hong Leong

Online etc

Thailand Baht Siam Commercial BankIndonesia Rupiah CIMB NiagaSingapore Dollar eNETSPhilippine Peso Dragonpay CorporationRenminbi 99 Bill, AliPayIndia Rupee CC Avenue, Axis BankAustralia Dollar PayPalUS Dollar AliPay International, Smartlink,

Website AnalysisCONTENT & USER ENGAGEMENT

CONTENT USER ENGAGEMENT

Air Asia website contain variety type of links

Providing different languages for different countries

Flash graphics

Air Asia engaging with their customers using social media e.g : Facebook

Website AnalysisUSABILITY, NAVIGATIONS & ACCESSIBILITY

Navigation - Interactivity design - Company logo is linked to homepageAccess - AirAsia has reasonable site-load time - Ideal font size

Website AnalysisOTHER COMPANY OWNED SITES

• AirAsiaRedTix.com

• AirAsiaBlog.com

• AirAsiaCourier.com

• AirAsiaMegastore.com

Business ModelBusiness pyramid model

Business ModelSPECIFIC E-BUSINESS MODEL USED

• Air Asia has been classified into the Enterprise Level E-Business Model1.) E-commerce : online ticket booking and reservation2.) Social networking : Facebook

Business ModelCUSTOMER VALUE

• Attributes : online reservation system• Branding : apply existing brand name for new products (e.g: AirAsiaMegastore.com)

Business ModelREVENUE STREAM SOURCES

• Sales model : selling online air travel tickets •Transaction fee model : all BSP payment transactions for AirAsia bookings will be charged a fixed BSP Transaction fee

E-Marketing MetricsSITES OBJECTIVES

• Air Asia website can be categorized into two major type of website which are commerce where the website is tasked for selling the company products and services online and also support/service site where it provides visitor with quick answer such as FAQ.

Two main objective of the web site which are :i.To achieve the sales and generate revenues

Almost all of the sales of the company are generated from the web site or using online transaction.

ii. To facilitate the company marketing activities A large portion of the website or center part of the website is used to displays the latest promotional of the company

iii. To provide customer support Air asia had automated a lot of process in the company for instance, travelers are able to check in to the flight online by using the web check-in option in airasia.com.

E-Marketing MetricsMetric Used

The balance scorecard is

• Astrategic planning and management system to measure and improve the strategies of the company.

• The balance scorecard measures the company strategies from four perspectives which are customer perspective, internal business perspective, learning and growth perspective and financial perspective.

E-Marketing MetricsMetric Used

E-Marketing MetricsMetric Used

E-Marketing MetricsMetric Used

E-Marketing MetricsMetric Used

Conclusions & Recommendations

In order to compete their competitors, Air Asia has design their business strategy which is mainly focused on low-cost philosophy which required simplicity and efficient operations methodAir Asia creates positive customer experience using internet marketing mix.Moreover, discovered that Air Asia is very good in promoting their brand to all around the world. The successful of Air Asia in ASEAN significantly show the importance of e-Commerce & m-Commerce assisting Air Asia to simplify their operation, efficiency, productivity and high utilization of assets to offer low fares.Air Asia should be ready to challenge their competitors by implementing technology to enable it to position themselves as leader in technology, industry-leading accuracy , and 5-star quality in the airline industry

Conclusions & Recommendations(i) PunctualityA reader Ken Miles wrote: “our recent Air Asia flight from Gold Coast to Kuala Lumpur was delayed for 45 minutes because of computer failure.”Air flights delay is the main concern of many customers especially business traveler, it could affect the schedule of business traveler, thus will trigger inconvenience to them( ii) Customer relationship Management Air Asia needs to train their employees and empowered them by giving them guidelines on how to provide good quality of services to customers. Employees should be trained to be familiar about the whole operations of Air Asia to increase effectiveness and efficiency of customer services, thus build up relationship with customers.(iii) Airport Terminal of Air AsiaDue to the status as low cost carrier, Air Asia chooses for low cost and remote area for their airport terminal. Traveler needs minimum 45 minutes to reach to the terminals which are very time-consuming and inconvenient. Therefore, Air Asia should consider locating their airport near cities.

ReferencesBalance Scorecard Institute (2012). What is Balance Scorecard? Retrieved from http://www.balancedscorecard.org/Home/tabid/36/Default.aspx

Press Release: Air Asia Leading Effort to Reduce Cost of Travelling. (2011, December 21). Retrieved May 10, 2012, from Air Asia: http://www.airasia.com/my/en/corporate/pressrelease.page

Air Asia Strategy. (n.d.). Retrieved May 10, 2012, from Air Asia: http://www.airasia.com/my/en/corporate/irstrategy.page

AvantiKumar. (2011, March 17). AirAsia adopts social CRM solution. Retrieved May 19, 2012, from ComputerWorld Malaysia: http://computerworld.com.my/resource/applications/crm/airasia-adopts-social-crm-solution/

Strauss, Judy and Frost, Raymond (2012) E-Marketing 6th Edition, New Jersey, Prentice Hall Publising.

Khor Yoke Lim, R. M. (2009). Branding an Airline: A Case Study Of Air Asia. Malaysian Journal of Media Studies, 35-48.

Evaluating Strategy For E-Commerce in Airline Industry :A Case of Air Asia. (n.d.). Retrieved May 19, 2012, from http://etd.uum.edu.my/1433/1/SAPINA_BT._DUSAMO.pdf

Thank You!

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