Askari Aviation Services Marketing Report
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Transcript of Askari Aviation Services Marketing Report
ASKARI AVIATION
Askari Aviation, a subsidiary of Pakistan's Army Welfare Trust, was
established to provide quality services in the field of aviation to
private and public sector. It is manned and
operated by retired Aviators from Pakistan
Army Aviation, who have operated in
Northern Areas of Pakistan throughout their careers and provided
evacuation services to mountaineers.
This Rawalpindi-based operation, established in 1995, is dedicated to
maintaining and operating aircraft/helicopter consistent with
international standards. Askari Aviation offers to co-ordinate and
generates necessary financial resources or enters into joint venture
satisfying specific requirements of its
client. It is backed by Pakistan Army
Aviation, which has over thirty years of
operational experience in the northern areas with routine landings.
The bases are situated in Lahore, Peshawar, Chaklala and Chitral. Its
Head Office is located in Chaklala, Rawalpindi.
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OBJECTIVES
Askari Aviation has three main objectives:
Providing Job Placements to Retired Aviation Officers
The prime reason of the Aviation’s existence is to provide job
opportunities to those particular retired army aviators who are
jobless after they leave the army. As the area of expertise of the
retired army officers’ was flying helicopters and planes, it
became nearly impossible for them to find jobs after they had
been relieved of their military duties. Therefore, Askari Aviation
employs these retired aviators as they finish their tenure.
Earn Revenue for the Army Welfare Trust
Askari Aviation operates with a motive of earning as much
revenue as possible and handing it over to the Army Welfare
Trust after deducting 5% service charges.
Promotion of Adventure Tourism in Pakistan
Askari Aviation is engaged in boosting helicopter-based
adventure tourism in Pakistan. The
Army has given the Aviation the right
2
to use its helicopters and aircrafts for transportation of
tourists.
TYPE OF SERVICE OFFER
The service can only be evaluated through experience as the
production and consumption cannot be separated. The description of
the service is as follows:
Askari Travel and Tours
Helicopter Safaris
At present, Askari Aviation is
primarily engaged in providing
quality aviation services of
helicopter for adventure, safaris,
rescue, crop dusting and cargo
3
transportation. Askari Aviation provides Helicopter Safaris
to the most magnificent ranges in the world: the Karakorams,
the Himalayans, the Hindukush and the Pamirs for vacation and
adventure. The Safaris include the following:
o Fly
o Fly and Hike
o Fly, Drive and Trek
In addition to this, the safaris can be customized to suit the
needs of the customers. For instance,
on a safari from Skardu to K-2, the
customer may choose if he wishes to
undertake part of the journey by foot or travel in a car or fly the
whole way.
Rescue Services
Askari Aviation provides rescue
facilities, especially to mountaineers
and trekkors in the northern areas
while ensuring minimum response time
with optimum effectiveness. Since the
pilots (retired aviators) have flown in
4
these areas, they know the place and have had adequate
training to render these services.
To provide the rescue operations, Askari aviation is backed by a
fleet of Pakistan Army Aircraft. Helicopters required for rescue
are positioned by Army/Aviation in general area of
mountaineering expedition area of activity, to achieve desired
response time. Their core elements include as follows:
The knowledge of all pertinent information of
mountaineering expedition of Pakistan along with the
activities going on in the respective areas.
The strength of the rescue teams, experience and the
physical conditions the teams are actually carrying with.
Whether the rescue teams are carrying with them the
relevant equipment that is, markers. Windsocks, smoke
grenades, communication sets, and information for the
rescue operation.
There are some rescue conditions that have to be met. Firstly, the
teams visiting Pakistan as per government policy will be required to
deposit of US$6000/= or provide guarantee of respective embassies to
Askari Aviation to clear the dues within 7 days. This is regard to the
5
presence of foreign teams in Pakistan if they want to avail
Askari Aviation helicopters for rescue purposes.
Askari Aviation will give detailed
briefing to all the teams on arrival on
rescue services and issue a kit, holding
minimum essential equipment for
guidance and reception of helicopter in emergency. Intimation on all
the teams covered for the rescue services with their areas of
operation and peak days of activity, will be intimated to rescue
centers in Gilgat and Skardu by Askari Aviation.
Say in the case of any emergency, teams must quickly intimate
through quickest means to any of the person with much detail:
Deputy commission Skardu
Deputy Commission Gilgat
Deputy Commission Chitral
Army aviation Squadron, Skardu.
In addition to that, the teams must clear their bills before leaving
Pakistan and return the security kits back to the Askari aviation. In
addition to this there are certain constraints that if the rescue heights
are above 4000m, and then they are mandatory to carry helicopters in
pairs due to the lack of communication facilities in the Areas.
6
7
Askari Charter Services
Askari Aviation have also started flying international charter both
passengers and cargo, particularly to Afghanistan. For security
operations, their teams keep hovering to different regions of North
Pakistan to get familiarized with all regions so that in the case of
emergency, it would take less time to locate the place for the security
operations.
Askari Airport Services
Ground-handling services are also being provided by Askari Aviation.
Such services include the coordination and organization of various
Commercial Airlines like Shaheen Airways, and PIA. Ground-handling
includes the maintenance of aircrafts, repairs and cleaning etc.
Although it is being provided on a limited scale and only in Chaklala
base but there is a potential for Askari Aviation to cash on the niche in
the market with this regard and to expand its services to major
international airports like Lahore(AIIP) and Karachi (Jinnah terminal).
TARGET MARKET
Askari Aviation’s target market comprises of the adventurous:
foreigners of various countries and Pakistani nationals living abroad.
Since the cost of maintaining and flying helicopters is very high, the
charges are passed onto the customers. Thus, a tourist is compelled to
8
pay a lot of extra charges for availing this luxury transport.
These extra value charges can only be afforded by a limited number of
customers. This clearly indicates that the organization can only cater
to a niche market.
The market within Pakistan is extremely narrow due to psychographic
factors. Askari Aviation knows that helicopter services are mostly
availed by foreigners who are passionate about mountaineering, and
are willing to do so under any
circumstances. A similar passion
for this activity is very rare in
Pakistani citizens and hence they
feel it is futile to try to cater to a
local market where demand for it
does not exist.
Even if a demand of it did exist, the company prices are so high that
are unaffordable for a local. So affordability is another issue amongst
Pakistanis. This is because the prices charged for various safari
expeditions are so high (almost $10,000 per expedition) that
Pakistanis (even if belonging to the upper middle class) cannot afford
their services. The company is well aware of this fact, so they target
9
only a foreign market or Pakistani nationals who live abroad as
only those individuals can afford their services.
BENEFITS TO TARGET MARKET
Time Effectiveness
One of the major benefits of their service is the efficiency they
provide with minimal time wastage for a tourist who has to
reach a certain destination. If a
similar mountaineering expedition
is to be carried out by road, it
would take many more days to
reach the destination. In addition to this, the discomfort of
carrying heavy luggage and the need for porters and guides to
lead the expedition only causes more frustration and exhaustion
of mountaineers who wear out even before they reach their
destination. A walk on the glaciers to Skardu will take 20 days
along with 100 porters to carry the necessities (tents, supplies
and belongings).
Quality and Comparative Cost Advantage over Road Travel
10
Road transportation ends up being more expensive than
their service. The cost turns out to be greater as porters and
vehicles are needed for travel.
Tourists prefer to choose this service as a means for their expedition
transport as it is not only reliable but also greatly reduces their time
and physical effort wastage. The benefits provided by the service are
attractive as all other alternative modes of transportation lead to a lot
of time wastage and tourists who are normally short on time, prefer to
choose this service as they are aware of its efficiency and
effectiveness.
Although Askari Aviation offers no specific loyalty to programs to
repeat customers and charge fixed rates to everyone. Albeit this, the
organization get repeat customers who are always willing to avail this
organization’s services. This shows that the target customers do find
the benefits being provided to them as attractive and worthwhile.
11
POSITIONING
Askari Aviation has been positioned as a premium and high quality
service. It provides a unique service in Pakistan through its helicopter
safaris. It faces no competition in the country so it enjoys a monopoly
position. There is flexibility in consumption but not in production.
LIFE CYCLE
The service offer is at the growth stage because the demand for the
service is still increasing. The company is recognized as a quality
provider of helicopter safaris. Though it faces no competition at the
moment, the company has a repeat purchase behavior from
customers.
12
BASIS OF PRICING
The pricing has been done keeping in view the very high costs of
flying and maintaining helicopters and aircrafts. Therefore, Askari
Aviation adopts cost-based pricing. According to customer perception,
Askari Aviation offers high quality service. Customers are interested
in the prestigious services the company offers and price is not a
primary concern of customers. So the company adopts prestige
pricing.
PRICING STRATEGY
Type Engine
s
Seats Cargo(Kgs) Altitude US$ per
hour
at US$
per Hour
Limitation (Sling
Ops)
Mi-17 Two 22 3,000 5,000 M 3,036.00 3,174.00
Puma Two 18 1,500 4,000 M 3,036.00 -
Bell-412 Two 10 - 3,000 M 2,139.00 -
Ecureuil One 3 1,500 6,000 M 1,697.00 -
Alt-III One 4 - 4,500 M 1,697.00 -
Lama One 3 - 5,500 M 1,697.00 1,835.00
13
UH1H/AB-
205
One 8 - 1,500 M 1,697.00 -
Jet
Ranger
One 3 - 2,500 M 1,697.00 -
Schweizer One 1 - 1,000 M 511 -
JPC Two 6 - Runway 2,498.00 -
G.E 421 Two 4 - Runway 1,160.00 -
Y-12 Two 14 1,000 Runway 1,794.00 -
MFI-17 One 1 - Runway 345 -
The above mentioned prices have been set in accordance with the
rules and regulations laid by the Ministry of Defence itself. Although,
the pricing is unsuitable for local or national customer; but with
regards to International adventurers and tourists, it is nominal and
compete able to international service providers.
14
DISTRIBUTION NETWORK
Askari has its bases in Lahore,
Islamabad, Peshawar, Chitral
and Skardu. Its marketing and
sales office is located in
Rawalpindi and so is its
corporate office in AWT plaza
Rawalpindi. It monitors and
controls its business through
these offices respectively and
there are no regional
distribution channels as such,
which means that the prospective customer can only avail their
services through registration and booking in its Rawalpindi based
office only.
COMPONENTS OF SUPPLY CHAIN
In Askari Aviation, the major component of supply chain is the
availability of required helicopters and planes at its disposal. Since
these planes and helicopters are leased out by Ministry of Defence, so
pre requisites must be fulfilled in due course to obtain the required
planes and helicopters.
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Secondly is the availability of spare parts and necessary equipment
needed in case of emergency and general repairs is also involved in
the supply chain for Askari aviation. And last but not the least is the
Aviators themselves. Since no plane can fly without a pilot, and the
current turnover of pilots due to commercial planes has made this
availability considerably difficult job for Askari Aviation.
16
PROMOTIONAL BUDGET
There is no promotional strategy that is being followed by Askari
Aviation as they feel that since they target foreign customers they do
not need to advertise. Thus, no specific budget is allocated for
promotions. But the group has devised certain strategies that will help
Askari to promote its services. Such strategies are discussed in the
recommendation part of our report.
OBJECT OF PROMOTION
The objective of promotion is to stimulate demand and generate sales.
Sales are the lifeblood of a business, without sales there would be no
business in the first place; therefore it is very important that if a
business wants to succeed, it should have a sales promotion strategy
in mind. The primary objective of a sales promotion is to improve a
company's sales by predicting and modifying your target customer's
purchasing behavior and patterns. This should be realized by Askari
Aviation.
17
TOOLS OF PROMOTION
As Askari Aviation has no clear promotional strategies, the tools that
they rely on are:
Word-of-Mouth
Askari Aviation believes that positive word of mouth advertises
their company. Satisfied customers spread the word around and
gain more customers.
Behaviour of Employees
The employees who interact with the customers advertise the
company’s culture and make it differentiated so that the
company retains customers. According to the company
management, Askari Aviation receives repeat customers.
Web Advertising
Askari Aviation has a website which not only advertises the
company’s name but also has options for making online
reservations.
18
19
BLUEPRINT
20
21
FLOWCHART
SERVICESCAPE
Since the service is largely intangible, physical evidence is often a
criterion to evaluate the service and predetermine satisfaction with
the service during and after consumption. As the service of Askari
Aviation operates in an interpersonal environment, a cleverly
designed servicescape can lead to the satisfaction of both customers
and employees. The servicescape of Askari Aviation largely plays the
role of a facilitator and socializer. Following are the elements
encompassing the servicescape of the organization:
Servicescape Other Tangibles
Askari Aviation
Marketing Office
Exterior and
Interior
Base Layout
Aircraft Exterior
Aircraft Interior
(Space, Seats, Air
Quality)
Tickets/Receipts
Meals
Uniforms
Website
Marketing Office Exterior and Interior
The Marketing Office of Askari Aviation is located in Chaklala,
Rawalpindi. The Office is near the airport and placed somewhat
22
between the twin cities. So, the location is conveniently
accessible for tourists landing at the Islamabad Airport. The
appearance of the Office is not very professional as it is gives a casual
impression and can be easily mistaken for another residence in the
area. There is a small board at the entrance indicating that this place
is their Office. The exterior can be worked upon by making it more
visible and differentiated. As far as the interior is concerned, it has a
reception in the front where assistance can be easily obtained. There
are pictures and boards showing the quality of service and
instructions for the process. However, the arrangement is again
mediocre and should be revamped by keeping a specific colour
combination, uniform furniture and orderly arrangement of pictorial
display.
Base Layout
The bases are owned and operated by
the Civil Aviation Authority and
situated in various areas of Pakistan to
facilitate movement of customers. The
planes present are scheduled
beforehand as per the request of the customers.
Aircraft Exterior
23
The Aircrafts/Helicopters are of top-quality and impressive
looking. The exterior differs from plane to plane but it gives the
customer a fair judgement
of the level of quality of
the airplanes. The
aircrafts are in fine
condition and models which are five or six years old are being used.
Aircraft Interior
The interior is not plush as airplanes are but is made to suit the rough
and tough. The seats are comfortable with exceptional air quality
maintained. The space differs from aircraft to aircraft.
Other Tangibles: Tickets/Receipts
The ticket/receipt is obtained from the Marketing Office on payment.
Meals
Askari Aviation provides on-board services which includes a tangible
component of meals. The meals are of adequate quality.
Uniform
The pilots are required to dress in a proper
uniform. This shows the level of indulgence
24
the organization shows in making itself look like a uniform unit
and thus is taken seriously by the customers.
Website
Internet sites are a part of the servicescape as they give a virtual
experience to the service because it is actually consumed and thus
gives a platform to evaluate the service. The service description,
service offers and instructions for application and payments can be
explicitly displayed.
SERVICE GAP
Gaps tend to come about for a variety of reasons, including:
25
Legal restrictions that may preclude a particular service--
e.g., in some countries, only certain stores are allowed to sell
specific kinds of merchandise, and, having a monopoly.
Existing firms have not provided as high level of service as
desired, and consumers either demand more service to buy the
product or would pay more to have the improved service or
would like the firm to reduce its current prices as per the
respective demographics.
Askari aviation faces a major service gap mainly because of its
monopoly with regards to its existence as the only service provider of
helicopter safaris and secondly due to its high fare rates that tend to
fend off local tourist or adventurers.
We found that company driven service gaps are more affecting the
overall service segment rather then the customer driven gaps.
Although there is a larger customer base in Pakistan that would like
to avail such service facilities but the potential bottle neck arises on
the very first step of service i.e. service charges. Keeping in mind the
service charges it is difficult for even the most influential Pakistanis to
avail such facility for leisure and adventure. Second bottle neck that
we found and tends to create a service gap in itself is the lack of
Askari Aviation to promote itself internationally as a major and only
service provider in Pakistan and various other international
26
destinations for UN based purposes. Focus based marketing is
necessary to promote Askari abroad so that to attract foreign tourist
and adventurer to Pakistan. This will help to promote a softer image
of Pakistan and will help to boost the tourism industry of Pakistan as
well.
OPERATIONAL PROCEDURES
The operational procedures of Askari Aviation have been elaborated
earlier in the service blueprint. The service is characterized as a high
contact service where moments of truth evaluate the quality of
service.
Askari Aviation
provides a service
which is flexible in
consumption as
customized
27
packages can be availed but there is no flexibility in production
as a customer has to visit their office and base to experience the
service.
The operational procedures are structured with respect to timing
schedules. These schedules are follows:
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TimeChart
Places Y-12 Lama Alt-III J/R & Mi-
17
UH-IH GE JPC
Abbottabad - 0:30 0:30 0:28 0:34 - -
Bannu 1:00 1:25 1:25 1:22 1:30 0:55 0:35
Bahawalpur 2:15 2:50 2:50 2:40 3:00 1:50 1:10
Cherat - 0:40 0:40 0:40 0:45 - -
Chitral 1:15 2:15 2:15 1:50 - 1:10 1:00
Changa
Manga
- 2:20 2:20 1:35 2:20 - -
D.G. Khan 2:20 3:10 3:10 1:32 3:10 1:06 0:42
Faisalabad 1:00 1:25 1:25 1:20 1:30 0:55 0:35
Gilgit 1:45 3:00 3:00 2:30 - 1:30 1:00
Hunza - 3:45 3:45 2:45 - - -
Jhelum - 0:35 0:35 0:32 0:38 - -
Kharian 0:25 0:40 0:40 0:38 0:43 - -
Kamra 0:10 0:25 0:25 0:24 0:28 0:17 0:12
Kohat 0:40 0:55 0:55 0:53 1:00 0:33 0:32
Khairpur - 5:20 5:20 2:25 5:20 - -
Karachi 15-May 7:15 7:15 6:45 7:15 3:30 2:45
Khunjerab - 5:00 5:00 3:45 - - -
Lahore 1:00 1:28 1:28 1:25 1:37 1:00 0:38
Mangla 0:20 0:30 0:30 0:29 0:34 0:18 0:14
Muzaffaraba
d
0:45 0:40 0:40 0:38 0:45 - -
Miawali 0:45 1:00 1:00 0:56 1:05 0:40 0:26
Multan 1:30 2:30 2:30 2:10 2:30 1:32 1:00
Okara 1:15 1:45 1:45 1:42 1:58 1:12 0:48
Pasrur - 1:15 1:15 1:10 1:20 - -
Peshawar 0:45 1:00 1:00 0:58 1:05 0:37 0:25
Parachinar 1:15 1:40 1:40 1:35 1:50 1:08 0:45
Qetta 3:00 5:00 5:00 4:30 5:00 2:45 2:00
R.Y. Khan 0:40 0:50 0:50 0:48 0:55 0:34 0:25
Risalpur 2:57 3:00 3:00 3:20 4:00 - -
Rahwali 0:45 1:00 1:00 1:00 5:00 0:42 0:28
Sargodha - 1:10 - 0:56 1:05 0:04 0:26
Shorkot 1:15 1:45 1:45 1:42 1:58 1:12 0:46
Sialkot 1:15 1:05 1:05 1:03 1:10 - -
Sakardu 2:10 3:30 3:30 3:00 - 2:00 1:10
Sulimanki - 3:00 3:00 1:56 2:50 1:25 -
Sakhar 3:35 5:00 5:00 4:15 5:00 2:30 1:45
Swat 0:45 1:15 1:15 1:00 1:15 0:50 0:35
Terbela - 0:25 0:25 0:23 0:26 - -
Taxila - 0:15 0:15 0:14 0:15 - -
Wah - 0:20 0:20 0:18 0:22 - -
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All these service deliveries are made with respect to the above
mentioned schedules and are complimented to weather conditions as
well as availability of aircrafts or helicopters.
SERVICE RECOVERY
The goal of service recovery1 is to identify customers with issues and
then to address those issues to the customer satisfaction to promote
customer retention. However, service recovery doesn't just happen.
It is a systematic business process that must be designed properly and
implemented in an organization. Perhaps more importantly, the
organizational culture must be supportive of idea that customers are
important and their voice has value.
Research has shown that customers who have had a service failure
resolved quickly and properly are more loyal to a company than are
customers who have never had a service failure -- significantly more
loyal. Service Recovery practices are a critical element in a Customer
Loyalty Program.
1 http://www.greatbrook.com/service_recovery.htm
30
One way to think about service recovery is that it is a positive
approach to complaint handling. Complaint handling has serious
negative connotations; whereas, service recovery has positive
connotations. Complaint handling is placating people, minimizing a
negative. Service recovery practices are a means to achieve the
potential, latent value a customer holds for a company by fostering an
ongoing positive relationship.
Service recovery has a secondary value. It creates positive word-of-
mouth about your company and minimizes the bad spin that lack of
service recovery practices can create.
Askari Aviation provides a full recovery to its customers if they cancel
their reservation 48hours before scheduled service. They also provide
completely free rescue services to its clients in case of an emergency
as is covered under the respective insurance plan. This helps to
improve the customer relation of Askari and tends to improve its
international market image.
SERVICE DESIGN
The service has a high intangibility aspect in it; it is a high contact
service. The indirect interaction takes place between a customer and
31
Askari Aviation through the internet, then direct interactions
with the employees at the Marketing Office and Bases and on
Aircrafts. The factors affecting the design are:
Performance of Employees
The helicopter service is heterogeneous since it involves
production and consumption simultaneously. No two
experiences by customers are alike as there is a substantial
input from the employees (pilots) and their levels of
performance can vary.
Weather Conditions
The weather can affect the helicopter’s movement and thus the
optimum service experience it can provide. Weather conditions
are an uncontrollable factor affecting the service design.
Intangibility
Since the helicopter is primarily an intangible experience, it can
not be guaranteed that the same level of service is provided
every time. Although the perceived service should meet the
expected service, however there can be variability in the service
provision due to the intangibility aspect.
32
RECRUITMENT POLICY
Since Askari aviation is managed and operated by retired aviators
from Pakistan Army Aviation who have served all along the major
tenure of their careers working in the northern areas of Pakistan, so
the total working force of Askari aviation is just a meager
number i.e. 700 people approximately. The reason being the fact
that in case of the pilots, they mostly take people from Army Aviation
and segment further to those who have either spent most of their time
in northern areas owing to the special handling expertise of the
helicopters and planes that they owe for their services. Apart from
that they, also take people from commercial flying clubs but their
selection criteria are fixed i.e. they require a completion of specific
no. of hours and then they take test flight for certain hours and after
strong and rigorous process of inculcation, they are selected on the
efficiency and effectives of the pilot’s complete handling of the plane.
This is due to the nature of service that they provide, rescue and
recreational, they cannot afford to have inefficient people for their
plane operations.
HIERARCHY OF MANAGEMENT
In case of their lower level
management, that includes the
33
ground staff handling people, the technicians required for the
planes, data analyst, they are kept on the contract and the permanent
basis. In regard to keep their performance level up to the standard,
they are given quarterly and annually training programs that ensure
co inculcate them with the latest information of plane handling
especially for the technicians and senior plane managers. For the
people who work in control room, they are given special training for
helicopter takeoff and landing positions, especially in the case of some
emergency. Apart from that, the total working population of Askari
Aviation including their all employees is reviewed by AWT annually to
ensure the numbers of people are proportionate with the number of
tasks in Askari Aviation.
The top management enjoys perks of house allowance, car, insurance,
medical and utility facilities given by the ministry of defense. Apart
from this, they also get 5% share from the total profit that they
generate from their services before giving the amount to the ministry
of defense. Manager takes 35000-40000/= salary and along with some
additional benefits. The
salary figures change with respect to the difference in the location of
their offices. In general, since it’s a subsidiary of AWT, the salary
structure of their employees is chalked out by them.
34
However, they keep on revising their salary level owing to
different economic conditions say inflation etc.
AGES OF EMPLOYEES
With regard to the ages of employees, the top level management is
average aged between 45-60 years of age (the figure can vary owing
to the experience owned by the people), In regard to their lower level
management, they don’t have any fixed criteria as far as the ages are
concerned, its just that the people they take have to be competent
enough, come up to their selection criteria and other pre-requisites.
Age level varies with respect to the different in the tasks that they
owe.
CAREER PROGRESSION
In Askari Aviation, the major portion of employee is formed by retired
army personals. These personals are already trained and most of them
have significant job and technical experience attained from their
previous job in army already. This helps such employees to attain
higher and immediate progression in Askari Aviation and various
related branches of Askari Trust. Besides that, civilian employees are
provided the opportunity to progress themselves through various
training and skill development programs. Major one is the FOO and
35
FCO tests for licensing of an Aviator and ATC for air traffic
controller exams.
Such career progression not only helps to motivate employees but
also helps them to further their career in commercial aviation as well.
EMPLOYEE RETENTION
In case of employee turnover and retention ratio, the employees of
AWT are employed on both contracts and permanent basis. The rules
and regulations governing the employee job concern are held by AWC
itself. The turnover of employees in the Askari aviation is low because
firstly, few numbers of people get themselves employed with Askari
aviation though the selection is still competitive; secondly, all
measures are taken to ensure the employee satisfaction. Many
incentives are given in this regard that includes Umrah, allowances of
education, medical insurance etc. The job contract signed by the
employees clearly demonstrates the rules and regulations of the
company. The company employees have to be well educated in field of
aviation and aeronautics. This whole process is carried out by the
selective recruitment by the selection committee of AWC.
36
The flying and maintenance crew is based on highly qualified,
experienced professionals from the Armed Forces of Pakistan. This
offers highest quality of service and safety standards, ensuring
commitment to professional excellence. As a disciplined organization,
they perfectly understand essence of responsibility and importance of
time. Their personal experience, therefore, will be of immense value
to coordinate between mountaineering expeditions and Army Aviation,
to achieve the objective with desired results.
According to the service profit chain, satisfied employees are capable
of delivering top-quality service which leads to profitability for the
organization.
37
S.W.O.T.
STRENGTHS
Monopoly Power
One of the major strengths that this organization is banking on is the
fact that currently it faces no competition and is one-of-the-kind in the
country. There is no other organization in Pakistan that provides
customers with a similar service so Askari Aviation enjoys a complete
monopoly.
38
Financial Backing
Another factor that is strength for them is the fact that they are being
financially backed by the army and all their
day to day operational costs are being paid
for by the Pakistani army. This backing is a
reassurance for the organization as they
know that at the end of the day all they will be reimbursed for all their
expenses. The helicopters being used for the service also belong to
the army so their maintenance and running costs are a burden for the
army, instead of this organization.
No Training Costs
Askari Aviation enjoys the fact that they do not have to spend any
money to train pilots, which is a very expensive training, as their
employees consist of retired aviators that are already trained by the
army to fly helicopters
WEAKNESSES
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High Fare
The fact that Askari Aviation is forced to charge extremely high prices
from its customers is a weakness for the organization as it limits their
target market to only a few individuals in the country. This limits them
to target their services to only a niche segment in the country who
can afford to pay the high prices they charge. The niche that they do
target is through the means of internet or placement of brochures in
luxury hotels. The organization does not indulge in mass
advertisement as they know that the niche they target can be easily
catered through these means and till now a need has not arisen for
them to indulge in any sort of large scale promotional activities.
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Lack of Promotional Activities
As the organization does not promote itself on a large scale, not many
people are aware of is existence. Although the organization’s
employees assert that they do not promote themselves as the prices
they charge are too high for most of the people to pay, it is believed
that it is still a weakness that the organization is not promoting itself.
We feel that the organization should promote it self in any case as it
might attract some more potential customers who have enough
resources to avail this service but due
to lack of awareness are unable to do
so.
Expensive Spare Parts
Besides that the high maintenance and flying costs of the helicopter
are, although not being paid by the organization, are still a weakness
for the organization as these extremely high prices hinder the
availability of any spare parts and the continuity of various processes.
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OPPORTUNITIES
Increasing Expeditions
An opportunity for the company is to offer more safaris and travel
packages to unexplored parts of the country. It could offer these
travel packages to different areas in the country as well as to its
neighboring countries. These packages should be offered to visit the
exotic locations within the country which are still unexplored and
might interest the target customers.
Collaboration with Pakistan Tourism Board
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Askari aviation has a major opportunity to collaborate its
services with Pakistan Tourism Board. Such collaboration would be
based on mutual interests with respect to promotion of tourism in
Pakistan. Since Askari Aviation is focusing primarily on Hiking and
Safari trips and due to the financial aspect of the offering, its target
market is outside Pakistan. Hence collaboration with Pakistan
Tourism Board will help to promote its services abroad and into a
wider market segment.
In return their services will help to bring more tourists for PTDC and
hence improve our overall tourism industry.
Provision of Infrastructural Services to other Organizations
Besides that this service could be hired by large multi national
companies who indulge in various mining activities in the dry and
isolated areas of Balochistan or Sindh. As access to these areas is
almost non existent and the infrastructure is in a very deplorable
condition, the organization can use these factors to its advantage and
provide the engineers and employees of these firms, an easy and
efficient access to these sights.
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THREATS
New Competitors
Although the organization’s employees say that the chances of a
competitive firm emerging in the near future are minor, this
possibility should not be completely ignored. It should be kept in mind
that they might have to face competition from another firm in the near
future who has a cost or technological advantage over them.
Loss of Customers
Another threat to this origination’s services could be loss of customers
from its competitive firms in Nepal. Although the firm does not face
competition from any firm within the county, it is facing a competition
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from similar services being provided by Nepalese aviation. We
were told by Mr. Ilyas that Pakistan has 4 high peaks whereas Nepal
has 10, which mostly attract the tourists to these countries. If Nepal is
able to improve its services and provide better services and travel
packages to its customers, they might switch to those services and
Askari aviation might loose its appeal to the tourists.
Political Situation in the Country
Besides this the political situation within the country is very fragile
and there is a lot of unrest which is prevalent. This could also deter
the tourists from visiting Pakistan as they are concerned about their
safety.
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P.E.S.T.
The macro-environment includes all factors influencing a company
that are not within its control. These include political social, economic
and technological factors. These are known as PEST factors. A
technique of analysis of the macro environment is PEST analysis.
Since the tourism and aviation industry is very much influenced by
changes taking place in the environment and has undergone rapid and
dramatic changes during the last decade, this analysis is especially
important for Askari Aviation.
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POLITICAL FACTORS
Political factors always have a great influence on the way businesses
operate in the aviation industry and the spending power of customers.
Governments intervene in the tourism and aviation industry for
various reasons, including:
It is a major employer and provider of livelihoods.
Transport systems are subject to legislation and regulation.
Political
1. Increased Competition
(Deregulation of aviation
industry)
2. Political Stability
3. Increased Investment
opportunity
Economical
1. Improved Purchasing
Power
2. Demand Value-for-Money
3. Soaring Oil Prices
4. Reduced Ticket Prices
Social
1. Greater Customer
Awareness
2. Increased Entertainment
spending.
3. Technology averse
Customers
Technological
Flight Control System
Fuel efficient helicopters
and planes
Promotion through Internet
and digital media.
PEST ANALYSIS
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International tourism flows mean that governments
benefit directly from incoming tourists.
However, in recent years it has been observed that government
played an active role in increasing competition in the tourism and
aviation industry. A number of new airlines such as JS Air have been
awarded licenses to enter the domestic market. Despite increasing
competition, Askari Aviation has maintained a monopoly on national
tourism routes. Aviation industry is significantly affected by political
stability. Pakistan has achieved some political stability in recent years.
If the management of Askari Aviation believes that the present
government will perform well (consistently), then there will be more
investment in the form of purchase of new airplanes and latest
technology. The over all industry will grow resulting in more luxurious
and comfortable flights. With the military takeover government
policies have become more liberal. In the past, Pakistan’s Civil
Aviation Authority (CAA) played a major role in discouraging new
Aviation safari providers to enter the industry. CAA had a restriction
that companies could not operate as safari and charter providers
unless they own their aircrafts. This means that new firms will need
humongous investment even to enter the market.
ECONOMIC FACTORS
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Currently Aviation industry has one local player i.e. Askari
Avaiation. Their target market includes foreign travelers and
adventurers who tend to visit the extreme northern areas of Pakistan
e.g Japan, Germany, Sweden, Korea, USA, UK and lots more.
These countries have strong economies coupled with high purchasing
power. Customers’ purchase behavior depends very much on prices of
the competing airlines as well as services offered. As inflation rate is
stable in Pakistan, spending power of consumers is not effected in the
long term. In fact growth in Pakistani economy has resulted in an
increase in spending power and has positively impacted the aviation
industry.
Economically, the new millennium has been highly volatile; the
September 11 attacks revolutionized the whole world. Consequently,
there was a global depression in the North America, South America,
Australia and Europe. However, in Asia especially Pakistan the effect
in the short term was otherwise. The economy began to boom because
of greater remittances from abroad and whole-sum immigration by
expatriates. As a result, demand for air travel in South Asia rose.
Askari Aviation because of its monopoly in the market had been
dictating policies and prices which are set after consideration by the
Ministry of Defence. Economic conditions of Pakistan are however
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improving. An increase in interest rates has negatively impacted
the aviation industry. Due to the devaluation of rupee, attractiveness
of the Pakistani market has been reduced for foreign investors. Cost is
a barrier to entry for new firms since it would
take a huge investment on part of new entrant to establish its bases in
Pakistan and buy or lease planes and helicopters.
SOCIAL FACTORS
The social and cultural influences on business vary from country to
country. The social structure of Pakistan is closely tied. The trend is
now changing as the general public is educated and is pursuing
professional goals. Customers are more aware of market conditions
and available options and want to get best value for their money. They
spend considerable time and money on entertainment hence
increasing the need flexible rates for its helicopter based safaris.
The social environment of Pakistan is turning liberal with the new
regime. However, Askari Aviation has untapped market potential both
abroad as well as in Pakistan, as consumers are unaware of its
services because of ineffective and meager marketing efforts.
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TECHNOLOGICAL FACTORS
Technology is vital for competitive advantage and is a major driver of
the airlines industry. Major technological changes are taking place in
the aviation industry with innovations in the helicopters flight control
system as well as newer and better planes which are more fuel
efficient. A key issue will be the extent, to which technological
advancements (such as Internet) impact distribution and cost
synergies from industry consolidation, can offset upward pressures on
costs. Askari Aviation has led the path of technological innovations by
introducing new technologies ahead of its international competitors
such as its newly leased helicopters and planes which have helped it
gain international market share.
MARKET NEED
There is a market need for the services offered by Askari Aviation
since rescue operations in far flung regions cannot be carried out by
regular means of transport due to the two main reasons: time and
route constraint. So, Askari Aviation provides the quick means of
security services say in the case of land slide that takes place or any
other casualty.
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It is worthy to mention that Askari Aviation rendered extremely
valuable services during the October 8th earthquake, to take the
affected people to safer areas.
COMPETITION
Currently the company faces no competition by any organization. The
reason why this organization remains a monopoly is because the cost
of maintenance and flying of the helicopters is a very expensive
activity. Even if a helicopter is not in the air and not being utilized for
any activity, it still costs money and is being depreciated. This implies
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that the assets upon which the company depends are so
expensive to buy and maintain that it becomes unfeasible for any
private organization to actually afford them. Furthermore, the
company has the backing of the Ministry of Defense which provides
helicopters and aircrafts. This shows that a similar service will require
a huge amount of investment, which is near to impossible for a private
organization in Pakistan. Due to all these circumstances, the
organization enjoys monopoly and faces no competition.
If a competitive organization does enter the market, besides buying
expensive helicopters, they would also need to train employees to fly a
helicopter, which has a very special and expensive training, currently
only being given to army aviators. Askari Aviation has a competitive
edge in this case as their employees are already trained in flying and
rescuing services while saving a considerable amount of training
costs.
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STRATEGIES FOR GROWTH AND EXPANSION
One of the common business strategy frameworks used in
understanding growth strategies is the Ansoff’s Growth Matrix,
developed by H. Igor Ansoff – a strategic management guru. The
matrix serves as a basic handy tool to set a firm thinking about the
direction it wants to take in its search for growth
Market Penetration
In this strategy, it would mean that the firm aims to sell more of its
existing products in the markets that they are already in. This would
translate into allocating more resources and efforts to build up sales
and marketing activities to attain revenue growth. Indirectly, the firm
is also trying to increase its market share. Generally, this may seem
less risky to a certain extent because the firm is already dealing in the
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same markets and products, however there may be limitations
as to how much growth one can derive in this strategy.
Market Development
For this strategy – existing products/new
markets, this happens when a firm decides to
sell its existing products into new
geographical markets or new market
segments (another defined target market).
For example, it could mean selling an
existing Safari package to a new market
overseas or alternatively, selling it to a new market segment (e.g.
second-hand
Market).The firm would also need to spend on sales and marketing to
persuade consumers in new markets to purchase the product/services.
Product Development
This strategy on the other hand, necessitates developing new
products to be sold in existing markets. This can be seen as a quite
common process because for a company to sustain its presence and
growth, it cannot rely on a single product range. For instance, Askari
Aviation can develop new and cheaper packages or it can collaborate
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with tourism development authority to formulate newer and
better projects that are more appealing to perspective customers.
Companies are competitively refreshing their product lines to keep in
touch with consumers as well as to keep up with certain trends,
market needs/tastes and etc. One would need some good grasp of
market knowledge and skills to come with new product introductions
that suits consumer’s needs.
Diversification
Often seen as a high risk strategy, diversification is where the firm
sells entirely new products to new customers in new markets. The
reasons for such a business strategy could be due to a rise in
opportunity that the firm has identified, or feel the need to tap and
rely on new sources of growth and so on.
There are two types of diversification: related and unrelated
diversification.
Related diversification means that the firm remains in a particular
industry, but diversify into another type of product to be sold to new
markets. For example, Askari Aviation starts to provide tourism
related services like opening of hotel and initiation of bus services for
tourism related areas. This way, with some knowledge and skill in a
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particular area (tourism and hotel services), a firm is going into
a new product line to serve new markets.
Unrelated diversification refers to a situation where the firm
completely ventures into a new business area to serve new markets
with its new product development. New capital investments are also
needed. In this scenario, it would mean that the firm is entering into
an industry that it has little experience with limited or no knowledge
of the industry. For example if Askari Aviation moves into other
diverse areas such as in media and telecommunications, shopping and
etc.
Whichever growth options you decide, a few critical things to bear in
mind would be the suitability of your brand in other areas/sectors;
time, human and labor resources as well as market and consumer
expectations. At the end of the day, the reward or benefit of
embarking into a particular strategy should outweigh its costs.
INCREASE PROMOTIONS
In our analysis, it is recommended that Askari Aviation should
promote its services and collaborate with Pakistan Tourism Board to
broaden its market base. Keeping in mind the potential and upcoming
competitors, there won’t be any monopoly left for Askari Aviation.
Since the management is unwilling to implement a comprehensive
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marketing campaign, it is suggested that they follow consistent
and modest marketing activities. There is no need for mass
advertising because Askari Aviation does not target the masses.
According to the target market, the company should advertise in the
following ways:
Web Advertising
Askari Aviation should improve the layout of their website and
make it simpler for the customers. They should be present on
the site of PTDC so that the customers are aware that such a
service exists.
Brochures
The brochures of Askari Aviation should be placed at counters of
the airports in Pakistan and should be given out to the business
class customers and foreigners.
Festivals
Askari Aviation should promote its name in the festivals where
Pakistan Tourism Development Corporation participates like
Summer Festival in Dubai and Festivals in Malaysia.
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Maintaining Records of Customers
In this way Askari Aviation can contact their at the start of the
season for helicopter safaris and can send them any latest
packages so that they feel valued.
ENHANCE MOTIVATION OF EMPLOYEES
Askari Aviation needs to motivate their employees so that satisfied
employees can provide a better service as chances for service
recovery is less: they have to give a superior service the first time. Job
Rotation should be present which increases their motivation levels
and enhance the skills of employees. The employees should be sent for
foreign training so that they feel loyal to the company. Skill
Enhancement Programs should be given to employees.
FORECAST MARKET
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Askari Aviation needs to forecast the market to maintain its
dominance.
Forecasting involves methods that derive from judgmental sources
and from statistical sources. These methods and the relationships
between them are shown in the flowchart in Figure. Going down the
flowchart, there is an increasing amount of integration between
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judgmental and statistical data and procedures. This
integration, which has been studied by researchers2 in the last
decade, can improve forecast accuracy.
Judgmental forecasting is made based on factors such as intentions,
role-playing, expert opinion etc. In intentional based forecasting
people are asked how would they behave in various situations.
Intentions surveys are widely used when sales data are not available,
such as for new product forecasts. Similarly role playing forecasting
involves the domination of a person in some situations, such as in
predicting how some one in firm would behave in negotiations. Role-
playing is useful for making forecasts of the behavior of individuals
who are interacting with others and especially when the situation
involves conflict. The key principle is to provide a realistic simulation
of the interactions. It is method that has considerable potential for
forecasting. Where as, Expert opinion studies differ substantially from
intentions surveys. When an expert is asked to predict the behavior of
a market, there is no need to claim that this is a representative
expert. Quite the contrary, the expert may be exceptional. The
preferred procedure is to weight each expert's forecast equally.
FORECASTING MARKET SIZE
2 (Armstrong and Collopy, 1998).
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Market size is influenced by environmental factors such as
economic conditions, population, and ability to purchase, social
trends, technological change, or government legislation. For example,
demographic factors such as the size and age distribution of the
population, distribution of disposable income, culture, and religious
factors influence the market for Askari Aviation.
Askari Aviation believes that since they do not have any current
competitors in the market and their target market with respect to
demographics and income parity are foreign adventurers, so they
don’t face any immediate threats with respect to competition and
reaction. Hence forecasting a market strategy is currently not being
implemented by them.
However, Askari Aviation should consider potential competition. A
likely scenario can be the introduction of helicopter safaris by airlines
in Pakistan. Thus, the company has to realize that this is serious
business which must have a market forecast and growth strategies.
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REFERENCES
PRIMARY SOURCEInterview with Col(r) Ilyaas Mohammad(Sr. Manager Askari Aviation)
SECONDARY SOURCESBooksMarketing a Service for Profit: a Practical Guide to Key Service Marketing Concepts - Page 117by Greg Clarke
Guerrilla Marketing Excellence: The 50 Golden Rules for Small-Business Success - Page 114by Jay Conrad Levinson
Marketing Without Advertisingby Salli Rasberry, Michael Phillips
Successful Direct Marketing Methods - Page 17by Ron Jacobs, Bob Stone
Marketing a Service for Profit: : a Practical Guide to Key Service Marketing Concepts - Page 1by Greg Clarke
Websiteswww.askariavaition.com
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www.en.wikipedia.org/wiki/ Positioning _( marketing )
www.morningstarmultimedia.com/html/blog.asp
www.itsolutions.forbes.com/.../Financial%20Service%20 Marketing %20Position
www.megapublic.com/branding/ positioning .html
www.ephiz.com/ services _ Blueprint s.php
http://www.google.com/search?hl=en&q=services+marketing%2Bservice+design
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