AirAsia was the company that chosen for this assignment.

AirAsia Berhad is a Malaysian

low-cost airline headquartered near Kuala Lumpur, Malaysia. It is the largest airline in
Malaysia by fleet size and destinations. AirAsia Group operates scheduled domestic and
international flights to more than 165 destinations spanning 25 countries. Its main base is
KLIA2, the low-cost carrier terminal at Kuala Lumpur International Airport (KLIA) in
Sepang, Selangor, Malaysia. Its affiliate airlines Thai AirAsia, Indonesia AirAsia,
Philippines AirAsia, and AirAsia India have bases in Bangkok–Don Mueang, Jakarta–
Soekarno-Hatta, Manila–Ninoy Aquino, and Bangalore–Kempegowda airports
respectively, while its sister airline, AirAsia X, focuses on long-haul routes. AirAsia's
registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur
International Airport.

Existing bases for this AirAsia Berhad is the Organization Position and Brand Strategy.
AirAsia has observed a high level of commitment to its core brand positioning as the
leader in low cost carrier in the region through offering the lowest airfares at a profit with
the tagline that “Now Everyone Can Fly” (AirAsia,2007). This tagline really plays a vital
role for AirAsia to become well known by the world. AirAsia’s advertisements and
promotional activities that are directed toward this initiative is visibly prominent in the
increasingly competitive and crowded marketplace which allows the airlines to cut
through the clutter and differentiate itself from other leading low cost carriers as well as
the national carrier Malaysia Airlines. This strategy is encapsulated aptly by Fombrun
affirming that “brands closely reflect the true value of a firm and is a source of
competitive advantage” (Fombrun, 1996). Therefore, everyone around the world prefers
AirAsia to travel to their favorite destinations because of the low cost air ticket prices.
AirAsia also have introduced RM1 ticket for the flight trip which makes people more
excited to choose AirAsia as their first preferences. In addition AirAsia also provides a
promising future for their staffs. In AirAsia point of view, they believe that their entire
staff act as contributor for the company, therefore, they always been treated as a big
family and equally. This is an example of empowering employees. Staffs in the AirAsia
have explored their career in this company. As an example, one of a dispatch boy
becomes a pilot after passed the exam to become a cadet pilot. This is a great

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achievement by AirAsia by setting the tagline 'Nothing is impossible'. Therefore, people
loved to work with AirAsia where there is an opportunity to enhance our life to become a
better place.

AirAsia maintains its position as lowest airline because of the price. There are high
competitions among the airlines to become the preferable one for the customers. As an
example, the air ticket rate is always lowest for AirAsia compared with other airlines
such as MAS airlines, Singapore airlines and more. By using this cost leadership
strategies, AirAsia can effectively gain a lots of customer to grab their service. In
addition AirAsia has introduced BIG Loyalty Programme, where consumers can spend
and accumulate BIG points to fly free to any AirAsia destination. Furthermore, using
these BIG points people can spend on their lifestyle and also can pay for the food and
more. Other than this, AirAsia’s promotion has been a great base of market position for
the competitors. AirAsia advertisement message strategy is aim to communicate
information about its products and services that is available. AirAsia message strategy
sparks through effective art work and layout. The clearly written, white in colour, of
“AirAsia” with red coloured background effectively allow readers to get a sense of the
advertisement’s central theme and capture the reader’s attention quickly without having
to read much. AirAsia utilize its slogan ‘Now Everyone Can Fly’ together with its value
of ‘Low Fares, No Frills’ as the centerpiece of its efforts, emphasizing major attributes of
the business’s products and services in the process. The slogan clearly underlines AirAsia
message implementation in pursuit of memorable advertising. The Internet is similar to a
magazine or television which is an advertising medium. AirAsia used its Website
www.airasia.com to combine words, pictures, sound, and video to reach domestic and
global buyers. Through its online advertising at its own website, a very particular
advantage of it is that the advertising medium could reach wide spectrum of consumer
regardless domestically or globally. Media selection for on ground advertising by AirAsia
consists of advertising through newspaper, television commercials, and also through its
very sales office as it channel partners and even its own aircraft steps. One very good
example for AirAsia selectively determining the advertising medium through media is in
the 2007 Malaysian Formula 1 Grand Prix, whereby they unveiled the AT Williams

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aircraft. The AirAsia brand was telecast all over the world and appeared on the front
covers of numerous magazines, proof of the newsworthiness of the its brand world’s
fastest growing airline and outscored all other carriers when it came to positive coverage.
Besides that, AirAsia took the opportunity to promote its brand worldwide through media
by sponsoring few high profile sports such as Manchester United and Barclays (English)
Premium League referees apart of the AT & T William Formula 1 team. Since AirAsia
has successfully implemented the low-cost carrier model in Southeast Asia, it receives
regular media coverage from regional media outlets. AirAsia utilizes such opportunities
to promote and increase its brand awareness without incurring additional sales and
marketing expenses. The effectiveness of AirAsia advertising implementation can be
seen often after receives coverage by local and international media, including the
Financial Times, New York Times, the Wall Street Journal, the Economist and Fortune.
Another effectiveness of AirAsia advertising is through its website and focus on the e-
commerce. For example AirAsia website, which they used it as part of their advertising
tools, seem to be over-crowded with too many micro-banners. It could distract the focus
of the potential customer when they planned to do bookings on-line.

One feasible recommendation that I would like to suggest for the service product of
AirAsia is the quality. Even though AirAsia has been the preferable choice for many
customers, the quality of the airlines needs to improve as to become one of the finest
airlines in the world. There are people not choosing AirAsia because of the poor quality
and poor maintenance of the airlines. For an example, due to the low air ticket, the
cleanliness of the plane and service provided by the staff is below the average level.
Compared the food, service and cleanliness in AirAsia, MAS airlines is highly
recommended by the people. This is because the fair ticket is the main income for airlines
and for AirAsia they are collecting low fares from the customers. Therefore, they do not
have sufficient money to improve the quality of their service. High quality of AirAsia
will yield more customers from different classes around the world.

Marketing Mix of AirAsia analyses the brand and company which covers 7Ps, Product,
Price, Place, Promotion, People, Physical Evidence and Process explains the AirAsia’s

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marketing strategy. There are several marketing strategies like product and service
innovation, marketing investment, customer experience and more which have helped
AirAsia to become a successful company. Marketing strategy helps companies achieve
business goals & objectives, and marketing mix for services consists of 7Ps is the widely
used framework to define the strategies. The low cost air services are the basic product
strategy in its marketing mix. AirAsia focuses on providing convenience to guests,
through competent services, in line with industry expectations and offers frequent flights
and reliable point-to-point connectivity. Next is the pricing strategy in AirAsia. AirAsia
stands for low pricing and a no frills policy. It engages in an anchor pricing strategy in its
marketing mix, which creates a competition for other airlines. AirAsia prices its services
and tickets at an extremely low price, encouraging the customers choose AirAsia as their
1st choice. Besides that, for place and distribution strategy AirAsia has massive operations
spread across more than 160 destinations world spread across 25 countries. It offers both
domestic and international flights on its routes. Distribution channels for tickets include
multiple sources from the likes of internet booking, exclusive reservation and sales
offices and company authorized agents. It operates through its affiliate airlines Thai
AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India while its sister
airline, AirAsia X, focuses on long-haul routes. For promotional and advertising strategy,
AirAsia has introduced the campaign of The Big Loyalty Programme where customer can
earn and redeem their BIG Point in various ways. Other than this, AirAsia engages in
popular promotions through advertising for example on social media, through print ads or
through simple but effective billboard advertising. In addition, AirAsia engage in direct
service development strategy simply by treating them as though they are an indispensable
part of the organization. People provide most services that is the selection, training, and
motivation of employees. Hence, it becomes key to choose the right set of people within
the organization. AirAsia have an image associated with them of choosing the right set of
people depending on their capabilities and also providing them a good future. For
Physical evidence AirAsia is known for its optimum utilization of logo based branding
right from the exterior of the aircraft to the interior seats and uniforms. They choose the
red and white colour combo for their company. Red means determination and Passion,
White stands for perfection and positivity. Furthermore, AirAsia maintain a good process

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and procedure in place to enhance their good service. They have maintained a good
customer care team to facilitate customer’s to solve their problems. They also believes
that customers are their main key to their success.

In conclusion, Air Asia’s vision is to keep on providing low cost flights and to be largest
low airlines in the world. By implementing key strategy it is possible for Air Asia to
create customer values and low fare model. Customer’s have the chance to choose and
customize their service without compromising with the service or quality. Air Asia’s
main targeted customers are Asian community. Air Asia has a very strong customer
loyalty and trust but it need to keep up with its service because competition are getting
tougher day by day.

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 ATTACHMENT

REFERENCES

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