PEST and SWOT analysis of AirAsias international business operations

1.1Background

AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia.

The leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our philosophy of 'Now Everyone Can Fly', AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As AirAsia continuously strives to promote air travel, we also seek to create excitement amongst our guests with our range of innovative and personalized service.

The aim of the investigation

The aim of this analysis is to conduct a PEST and SWOT analysis in the context of AirAsia's international business operations, identifying the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia .Besides that, The purpose of this report is to identify its stakeholders and core competencies, carry out a investigation of its external environment, review a strategic analysis of Airasia to identify opportunities and threats it might face, and to isolate key strengths and any weaknesses that need dealing with. Moreover a SWOT analysis will be carried out to assess the extent to which its strategies are suitable to what is happening in its present environment. Finally, after identifying competitive strategy a Strategic plan will be made to gain competitive advantage.

Chapter 2

DISCUSSION

2.1 Company Overview

AirAsia is currently one of the leading low cost airlines in South East Asia which has expanded rapidly and it's still the second largest air carrier in Malaysia. It dynamic nature of business is based on domestic and international flights, holiday and business arrangements for its customers domestically and internationally around the region with the low fare, safe and convenience means of transportation. (www.airasia.com).

AirAsia's vision

To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.

AirAsia's mission

To be the best company to work for whereby employees are treated as part of a big family

Create a globally recognized ASEAN brand

To attain the lowest cost so that everyone can fly with AirAsia

Maintain the highest quality product, embracing technology to reduce cost and enhance service levels

AirAsia's values

AirAsia make the low fare model possible through the implementation of the following key strategies:

SafetyFirst:

Partnering with the world's most renowned maintenance providers and complying with the with world airline operations.

High Aircraft Utilisation:

Implementing the regions fastest turnaround time at only 25 minutes, assuring lower costs and higher productivity.

Low Fare, No Frills:

Providing guests with the choice of customizing services without compromising on quality and services.

Streamline Operations:

Making sure that processes are as simple as possible.

Lean Distribution System:

Offering a wide and innovative range of distribution channels to make booking and travelling easier.

Point to Point Network:

Applying the point-to-point network keeps operations simple and costs, low.

Products and Services offered By Air Asia

In-flight services:

• Air Asia offer food and drinks on board programme .

• In-flight services customise meals and merchandise package upon request e.g. caps, T-shirts, and pants.

Online services:

• Online booking makes it more convenient for its customers to book online anywhere anytime.

• Flight information is available to help customers make enquiries on flight schedules arrival and departure time and date.

• Chatter -flight: Created for a group of people, business travellers for purposes like meetings, conventions, leisure or even exhibition.

Channels of distribution

A number of alternate 'channels' of distribution may be available:

Selling direct:

• Outbound sales forcer

• Via mail order, Internet

• Telephone sales

Selling indirect:

• Agent, who typically sells direct on behalf of the producer

• Distributor (also called wholesaler), who sells to retailers

• Retailer (also called dealer or reseller), who sells to end customers

Sales and Marketing

AirAsia is an international company, and going global invites a lot of competition. AirAsia has to deal with the competition of local companies in the same field- Airline services. Competition for AirAsia would also be encountered in the virtual world-the internet. As they entered into the use of modern technology such as the public domain would invite competition on the global scale. Different localities and countries have different technological standards, and quality control policies, which AirAsia would have to adhere to, by adherence to these policies; certain intended developments may be possible in certain communities but not acceptable in others.

According to CEO's of the company, Mr. Fernandez, there are a lot workers or low pay salaries earners who would like to travel often to meet their families especially during special occasions but due to how expensive it was that time, their desire are not fulfilled. By introducing a low fare will give all those people opportunity to travel if not more than once in a year. This enables them to identify their target

market. Reduced price sales is one of the basics of securing a target market for AirAsia. They reduce their price to suit their class of customers

Branding

AirAsia went into intensive General advertisements and other high profile activities, which contributed to the high offering of their company's image. They came with a brand " Now every one can fly" These points of contact with their target customer help them to build their image, which in turn created loyalty from their customers.

Group Discounts and Offers

Discounts or other offers can help exposure business to new customers, resulting in a sales increase . AirAsia is a ticketless Airline that allows customers to purchase their ticket online with at a discounted rate. They also have a scheme of group discount and this help to get more target market, especially internet based customers.

2.2Core competencies:

Computer Reservation System (CRS)

AirAsia's CRS (Open Skies by Navitaire) has helped it to grow at a dramatic pace in the past couple of years. Tony Fernandes, CEO AirAsia described that Navitaire's Open Skies technology has truly enabled Airasia's growth from 2 million passengers to 7.7 million passengers in less than two years. Open Skies scaled easily to accommodate our growth.

It is an integrated web-based reservation and inventory system. It includes Internet, call center, airport departure control and more. It is a direct sales engine that effectively eliminates the middleman (travel agents) and the sales commissions that need to be paid to them.

Enterprise Resource Planning System (ERP)

AirAsia has recently (May 2005) opted for a full fledged ERP system implemented by Avanade consultants. By implementing this package AirAsia is looking to successfully maintain process integrity, reduce financial month-end closing processing times, and speed up reporting and data retrieval processes.

Self Check In

With the use of the new self check in service a quicker and more convenient way to check in using mobile phones, laptops etc, connecting to the internet. This system is easier and faster for customers and their family to check in at or before they get to the airport without having to queue up at the counter to check in.

Air Asia credit card

Air Asia offers a choice of credit card facilities to fit in their customers travel life style be it business, leisure, training or holidays. With an Air Asia credit card a customer can purchase any goods or services while travelling anywhere in the world online.

Go Holiday services

Air Asia has a product called Go Holiday, with the help of E-commerce Air Asia is able to display their coverage maps, holiday resorts, first and average class hotels, car rental services, and activities in different countries with their different rates and prices on Air Asia's web page.. Using E-commerce, customers are able to select and make a holiday and travel arrangement with a hotel of their choice and class, a pick up car and even medical services. And payments for all this can be done on the internet using credit cards or other online E-payment methods ahead of travel time.

Foreign workers and Contractors strategy

AirAsia also target most foreign workers from Indonesia, Singapore, Thailand, China, Macau who may not afford the expensive flight home and offer them the cheap fare which attracted most of them as would go home very often without paying much.

2.3 The Competitors

Companies in all industries have direct as well as indirect competitors. Direct competitors in the aviation industry are companies that offer flights to similar destinations on comparable terms of travel. Direct competitors include:

Malaysia Airlines: offering flights in same routes .

Singapore Airlines: offering flights on same routes between London and Kuala Lumpur.

Thai Air : operating flights between Bangkok an Kuala Lumpur.

Air Srilanka: operating flights between Colombo and Bangkok.

AirAsia are facing strong competition with major international and national airlines on the market shares In contrast to other airlines ,AirAsia offers better value for money

2.4Analysis of Environmental Factors

In analyzing the macro-environment, it is important to identify the factors that might affect a number of vital variables that are likely to influence the organization's supply and demand levels and its costs (Kotter and Schlesinger 1991).

The external environment of any organization can be analyzed by conducting a PEST analysis. The acronym PEST is used to describe a framework for the analysis of a range of macro environmental factors including the Political, Economical Social and Technological environment.

PEST Analysis for AirAsia:

Political

Flying outside Malaysia is difficult. Bilateral agreement is one of the main obstacles in the way of low cost carriers. Landing charges is also another big influencing factor on costing of low fare airlines. The low- cost airline industry in south-east Asia has been underdeveloped because the aviation market is tightly regulated by bilateral air rights agreements.

Threat of terrorism, people is afraid to fly after the September 11 terrorist attacks incident.

Economic

In spite of strong competition from Malaysian Airline (MAS), AirAsia's low-cost carriers offering cheap tickets and few in-flight services are gaining attraction in the region.

Current recession hit the aviation business. But with this economy slowing down, more people will want to enjoy its cheap tickets.

Oil prices is another regulatory factor for this type of airlines. If oil prices go high, it is very difficult to control cost of operation.

Social

Passengers are reluctant to board a no-frills airline for a long-haul flight.

Increasing world's population, tourists and number of educated people helpful for the growth of aviation industry.

Outbreak of the Severe Acute Respiratory Syndrome (SARS) has scare people to fly. AirAsia commit to "Safety First"; comply with all regulatory agencies, set and maintain consistently high standards; ensure the security of staff and guests.

Technology

AirAsia provides online service that combines air ticketing with hotel bookings, car hire and travel insurance. To help keep costs in check, Air Asia has pushed internet booking services.

AirAsia also recently introduced GO Holiday, the airline's online programme where guests can book holiday packages online in real time

AirAsia has bought in A320 to replace Boeing 737. The Airbus A320's improved fuel efficiency and extra capacity which leads to better performance and reliability.

SWOT analysis for AirAsia

Strengths

Low operational and maintenance cost by having a single aircraft type fleet i.e. from Boeing 737 to Airbus A-320. Economy of scales benefits.

Low operating cost due to being No Frill, online reservations system, quick check in etc.

There is huge untapped market in the region, especially for business travellers and "for-the-first-time-flying" segment.

As it is low cost airlines, it can target customers who are currently using non-aircraft modes like, Bus, Trains, car to travel to distances.

Weakness

Huge investment to purchase air planes and implementing latest technologies there is high amount of operational cost.

Rising fuel price. Increased the operational cost.

The flight times are more or less limited to 2.5 hours. So they cannot operate flights of longer duration without any Frill, so No-Frill becomes impossible to implement for passengers.

Opportunity

Low fares offer by AirAsia has encourage people from all walks of life style to fly. Especially, during economy down turn.

Airbus A320 would encourage greater passenger capacity and offer comfortable service to customers.

Introduction of SMS booking allows customer to book their seat at anytime and anywhere.

With the commitment in ensuring the security of staff and customers, customer will have more confident to fly via AirAsia.

Threats

There are more no-frills airlines may take off in Asia to meet increasing consumer demand following the success story of Malaysia's budget carrier AirAsia.

Singapore Airlines plans to launch a budget carrier, they see the success of AirAsia. They know how big the market is and how good the opportunity is in Asia.

Travelers may not choose AirAsia if they are to travel long distance flight. They will prefer airlines such as MAS or SIA which provide better services.

Demand to fly decreased via terrorism and outbreak of the SARS.

2.5 Marketing Plan

Cost advantages activities:

AirAsia already introduced cost advantages activities. Some of them describe below:

Utilising one type of aircraft (Boeing 737-300 which will be fully replaced with Airbus A320) results in reduction of maintenance cost (one of the major expenses in airline industry), scheduling cost, administrative cost, and inventory of parts.

Creative and low-cost advertising significantly reduces marketing cost. On the other hand, AirAsia direct sales through internet, call centres, walk-in airport sales, and sales offices significantly reduce the commission fee to travel agents as AirAsia only assigned its sales to

limited travel agents

AirAsia assigned multi-skilled cabin crews (2-3crews/flight), cost-effective training, performance based reward and incentives systems

Target Market:

Low- income Customers and tourism segment

Malaysia emergence as a regional business and tourism hub has provided AirAsia plenty of room for growth and has fuelled regional air passenger traffic.

Transit passengers

Kuala Lumpur is the operational hub for AirAsia, which is the best connection point between Europe and Asia/Australia has supported the growth of their business. AirAsia has been using this "connection point" to promote their business.

2.6 Proposed Strategy for further expansion of AirAsia

Extending New Routes:

Extending current services into new markets may be helpful to further growth of this company. It is possible to achieve this strategy by launching existing services into new geographical area or new market segments.

Adding new routes and destinations are possible; especially there is growth Malaysia and East Asia tourism.

Activities related to this strategy:

Marketing research

Feasibility Study

Contract with hotels and tourist agency at new destinations

Finding out strategic partner

Marketing new routes and destination

Time frame and cost:

It will take 1 to 2 years to start a new route and estimated cost around $200 million to new aircraft and for marketing cost.

Organizational change:

Recruiting new employees

Arranging training for new employees

Opening new office in new destination

Evaluation criteria:

New destinations are implemented to achieve new market development. Flight number in new destination is the best way to measure result of this strategy.

Private Suite for business customer:

Introducing new services into existing markets implies product development. This strategy involves the development of fresh competencies and requires business to expand customized services which can apply to current markets. That's why Emirate Airlines introduce high quality first class private lounges to attract business travelers.

Activities related to this strategy:

Technical and feasibility Study

Allocated budget

Contract with a company to install new facility.

Installation and modification of aircraft's onboard facilities

Time frame and cost:

It will take 6 months to 1 year to complete installation new facilities in a single aircraft and estimated cost around $0.2 million to new aircraft and for marketing cost.

Organizational change:

Recruiting new employees to serve business customer

Contract with new or existing company for catering service for business customer.

Evaluation criteria:

Quantitative measurement of this product would be number of booking or occupancy.

Chapter 3

CONCLUSION

3.1 Conclusion

By studying PEST, SWOT and marketing analysis, it could be said that AirAsia is situated in standard cycle markets where it get competitive advantage for its business policy and strategy. Providing customers with superior products and services with low fare is synonymous to the AirAsia brand. However, it is necessary that Airasia should re-evaluate its strategies and focus on core values and competencies. For this why, AirAsia should reconsider their market and specific routes to obtain value other than price and survive the competition. From this study, it is possible to say that still there is some other option to expand this company. Adding new route and introducing business class suite may be suitable option for AirAsia for further growth.

3.2 Recommendations

To remain leader in the market in serving customers, AirAsia has to re-evaluate their current strategy. Recommendation for improvement can be outlined as follows:

AirAsia should make any major changes to their strategy after proper technical and feasibility study to avoid unnecessary risks.

Oil price is a big factor to low fare airlines. So this company should make longer contracts with fuel suppliers for more stability

As Airasia operates their fight very frequently, so they should have a spare aircraft at each location to avoid delays.

AirAsia should consider environmentally friendly operation system as such as carbon offsetting to save environment.

REFFERENCE

Daniels, J. D. & Radebaugh, L. H. (1998), International Business 'Environments and Operations, 8th edition, Addison-Wesley, USA.

Peng Mike W, 2006, Global Strategy, Thompson, United States

Porter Michael E, 1998, Competitive Advantage, The Free Press, United States.

Websites:

www.airasia.com

www.navitaire.com/res

A Marketing Analysis Of Air Asia Marketing Essay

In order to make sure that the slogan of "Now Everyone Can Fly", Airasia had launched Low Fare Campaign in order to attract the customers to fly with a low fare. The objectives of this campaign are to offer low fares to customer to travel and offer discounts to the public in order to encourage more people to fly with Airasia. Moreover, this will lead to new market entry of first-time user. (Thestar, 2007)

2.0 Airasia Market analysis

2.1 PESTEL analysis

Political Factor

Airasia airline had planned to build a new single-runway airport in Labu, Negeri Sembilan with the Sime Darby in 2009 and been approved by the government. However, the plan has been cancelled due to the Stated-owned Malaysia Airports had tried to stop to build the new terminal and disagreement with former Prime Minister, Tun Mahathir. (Flightglobal, 2009)

Economic Factor

In 2010, Malaysia Government had introduced one government policy which is "10 Malaysia Plan" to the public in order to unleash the growth of economic. The Airport development is one of the plans as Malaysia Government expects the passenger's amount will increase to 62 million in 2015. A new low cost terminal will be built by the in Kuala Lumpur International Airport for Airasia and has larger terminal. (Midfresearch, 2010)

Social Cultural Factor

Malaysia is the country which has 3 ethnics and the cultures are unique. Airasia believes that the communities are expecting that the airline can treat every ethnic equally. In order to do that, Airasia is practicing the meritocracy culture whereby the employees hired not based on the age and ethnic. (Airasia, 2009)

Technological Factor

Airasia has implemented information technology in running the operations of the airline to save the costs. The information technologies that implemented are yield management system and computer reservation system. The systems can help the airline to save the costs by recording on revenue and transactions in daily operations. (Management of Technology, 2009)

Environmental Factor

Airasia has invested in the latest technology and full utilization of the aircraft in protecting the environment and A320 airbus which is more efficient to operate and more save fuel is used. Airasia ticketless system and near paperless office are the strategies to cut down the waste of paper. (Airasia, 2009)

Legal Factor

In order to operate in Malaysia, Airasia must apply the Air Service License from the Malaysia Civil Aviation. The regulations such as Civil Aviation Act 1969 and Aviation Offences Act 1984 must be followed. (Airasia, 2004)

2.2 SWOT analysis

Strength Analysis

Low Cost Carrier business model is one of the strength of Airasia in order to compete in the airline industry. The second is Airasia has a very strong relationship with the government and the airline industry leaders. The third is well established of brand name in Asia Pacific. (Management of Technology, 2009)

Weakness Analysis

The Airasia main weakness is the airline more reliable on the out sourcing workforce. The other weaknesses are the service resource is limited and the airline is receiving many complaints on the no-refundable of the ticket canceled and the delay of flight. (Management of Technology, 2009)

Opportunity Analysis

The first opportunity is the ever-increasing oil price which enables Airasia to compete with other low cost airline. (Management of Technology, 2009). "ASEAN Open Skies" agreement that achieved which is allows Airasia to run unlimited flights among ASEAN'S regional is also an opportunity. (Wong, 2009)

Threat Analysis

The first threat is the services rates (airport departure, security charges) are controlled by the airline. The other threats are other entrance of low cost airline and the operation cost is increase due to the services that added. (Wong, 2009)

2.3Trend and Current Position

2.3.1 Airasia Trend

In 2009, the low-cost carrier airline that established well had proved that has sufficient power to operate across the region in different market and economic. Airasia airline is the fast-growing and profit earning steadily airline which had increased the profit for the past. Airasia is also able to grow the market share in the Southeast Asia and had introduced the low-cost long-haul carrier whereby can offering the passenger cheaper fare. Airasia has started to have partnership with other low cost airline to reduce the airline operation costs such as ground-handling services. (Flightglobal, 2010)

2.3.2 Airasia and Competitors Current Position

In Malaysia, the main competitor of Airasia is the Malaysia Airline System (MAS) which is Malaysia's National Airline. In order to compete with Airasia, MAS had launched the first low cost airline which is Firefly. The airline is the test-bed in running low-cost operation. In March 2007, Malaysia Airline System had launched the first community and low cost airline which is Firefly to compete with other low cost airline. The Firefly airline is the test-bed of Malaysia Airline System in running the low-cost operation instead to test for new market segmentation and the Malaysia Airline System will adapt and expand it into national carrier if the operation of Firefly is proven success and gain stability. (Datamonitor, 2008).

Due to the existing of new competitor, Airasia Malaysia has two competitors in Malaysia. However, the prices of airline ticket in Airasia is the main advantage and able to maintain current position as low-cost carrier.

Particular

Malaysia Airline

Airasia

Firefly

Airfare

Non

RM15

RM130

Service Charge

RM9

Non

Non

Surcharge

RM76

RM47.50

RM51

Total

RM85

RM62.50

RM181

Â

Â

Â

Â

(Prices Comparison for one person one way ticket to Pulau Langkawi during promotion)

(Reference: Amdtaufik, 2008)

3.0 Objective

3.1 Corporate Objective

The first objective of Airasia is to become the largest low cost airline organization in Asia by provide services to 3 billion people.

Second objective is to attain with the lowest cost and lead to everyone can fly.

The third objective is to maintain the product quality and reduce the costs.

3.2 Communication and Marketing Objectives

The first communication objective of Airasia is to promote the organization, services and products through the effective communication program to the customers.

The second objective is to make sure that there is a communication relationship between the Airasia and the customers and the relationship can be strengthen through the campaign awareness and brand reputation.

The third objective is to expand the communication and media strategy in order to create brand or product awareness to the customers in order to achieve the organization goal.

The last communication objective is to maintain the good relationship with the customers and keep updating customers with organization information's.

(JobDB, 2011)

4.0 Marketing Communication Tool - Low Fare Campaign

4.1Advertising

In order to communicate with the target audience, Airasia is using advertising as a tool in introducing the products and services. One of the important advertising media that frequently used is the social

media. The advantages of using social media are the internet enable the interactive capabilities, high selectivity by the users and the cost is low.

In Airasia, the organization strongly agrees that social media is playing an important role in order for the organization to do advertising and build a consumer group that contributing trust to brand and value. Nowadays, the internet had made the people able to connect with the whole world people easily and more time is spending for online. By using social media, the messages of the products and services can be reaching out and able to share out the content of message effectively. Besides that, the social media is able to provide a channel of communication for the organization to run the activity such as low fare promotions, new product launching and news announcement. Moreover, the social media able to create a communication platform for the Airasia to connect with the people and enable the people to have more understanding on the organization. (Airasia,2009)

Airasia had started the corporate blog (www.blog.airasia.com) in 2008 and Facebook (www.facebook.com/AirAsia) in 2009. The effectiveness and efficiencies of the social media enable Airasia to reach the number of fans and creating a strong relation community. For the community, they are able to get the latest information about the campaign that launched by Airasia through the social media. (Airasia, 2011)

Another method of Airasia to run the advertising is using the Airspace advertising whereby the unique and effective way of advertising can be done to reach all the customers who take the flight. With the new approach of advertising and more cost saving, the messages can be reaching to large coverage of passengers. This allows the messages of the campaign directly communicate with the passenger and can across effectively whether on the ground or in the sky. The advertisements of the campaign can be placed in the auto boarding pass, the information counter, sales office and on the passenger's seats. (Airasia, 2010)

Besides that, Airasia use newspaper as advertising media. By using the newspaper, the messages of the campaign can be more flexible to access to the different coverage of markets and the target audiences are different. The newspaper medias that used by Airasia in Malaysia are Star, Sin Chew Daily, China Press, Berita Harian and others.

(Lee and Johnson, 2005)

4.2 Direct marketing

Direct marketing is an interactive system that can helps the organization to personalized communications between them and the customers. With the help of computer and internet development nowadays, the organization is able to run two way communications for their products and services. (Lee and Johnson, 2005)

In order to increase the awareness of the organization to the customers, Airasia is using direct marketing in order to encourage the interactions between organizations and allow users to be more understanding

on the brand. One of the direct marketing tool that used by Airasia is the Yahoo Mobile. Airasia is promoting and sending the messages to the customers by using other website.

Airasia has corporate with Yahoo Mobile whereby the organization allows Airasia mobile website to put the banner advertisement on the Yahoo mobile homepage, yahoo mail and yahoo search. The mobile users just need to access to the Yahoo Mobile and click to the Airasia banner, the link will automatically connect to the Airasia Website.

By this, the customers can book the flight tickets, checking the ticket booking status and access to the promoting campaign. These services and information assessment through mobile technology has lead to the increasing in awareness of the organization and campaign promotion.

Moreover, this direct marketing method had lead to the good responses from the users whereby the total click to the website is 108,405 clicks and the rate is 1.78 percent after 28days launching. (Mobilemarketer, 2009)

4.3 Public Relation

There are many activities that can be carried by the public relation in order to communicate to the related party. In Airasia, one of the activities that carried out by the Public Relation is the Corporate Social Responsibility. The features in this concept are the organization shares the values and joyfulness in with the related parties. Airasia is celebrating the times of joy with the communities, practicing the communities' value and traditions and delivering cares to them. There are few area that focused by the Airasia in caring out this activity. The first area is the organization work place. Airasia is practicing the meritocracy culture and the employees are hired due to their performance and ability. The elements like gender, creed, age and ethic are not considered in the hiring process. By practicing the meritocracy culture, Airasia believe that they can strive to exceed the community's high expectation and provides equally treatment to all the communities.

The second area that focused is helping the communities to pass the hard time. There was an earthquake happened in 2009 and had shocked many communities in Indonesia. At that moment, the Airasia decided to lend a hand and running the "charity flight" to help the victims to go out from that place. Moreover, the Airasia in Malaysia is also helping out in providing the cargo space to deliver the goods for the victims. Airasia always help the victims of disaster and providing joyfulness and hope to them.

The last area that focused is minimizing the environment impact in creating greener environment. The first thing Airasia do is promoting the recycle concept to the work place environment and encourage paperless system office to be run. Moreover, self service check-in options is encouraged by the organization in order to helps in reduce the need for expensive airport infrastructure. The efficient and simple ground environment is the main policy in protecting the environment. (Airasia, 2009)

5.0 Airasia Marketing Strategies

5.1 Pull and Profile Strategy

Airasia is using the Pull Strategy to deliver the low fare campaign information directly to the end-user customers. The purposes of the messages delivered are to increase the campaign awareness, encourage the customer's involvement and to influence the customer perception. By these, the customer behavior and perception may be changed and lead to the purchasing of the products. Moreover, Airasia use this strategy to encourage and attract the customers to purchase airline through the website channel. For Airasia to complete and deliver the pull strategy, the method that use can be deliver the message through the social media or website by offering the low fare promotion to the customers. (Fill , 2006)

Airasia is using the Profile Strategy which is using different messages in target all the stakeholders that related. The stakeholders of Airasia are customers, employees, regulators and the local communities. This strategy is including the pull selling which is requires high promoting to attract the customers and push strategy which is forces from the organization to increase the customer demand. By using this strategy through different marketing communication tools to deliver different message, Airasia is able to build up the awareness of the low fare campaign and the perception of communities toward the campaign. (Fill , 2006)

5.2 Unique Selling Propositions

In order to be unique selling proposition, the strategy that used by Airasia is low cost carrier and has come out the vision of in becoming the largest low cost airline in Asia and makes the dream of average income people to fly happens. The slogan that implement for the strategy is "Now Everyone Can Fly" whereby the tickets prices are lower. To become differently from others airline, Airasia has implementing few strategies in order to make sure that the low fare model is possible to run.

The first strategy that Airasia apply is the Safety First strategy on the maintenance of the airplane. The organization is follow the others world airline operation safety strategy and partnering with the world's recognize repairing and maintenance manufacturer.

The second strategy is the High Aircraft Utilization where the Airasia implementing the fastest turnover time in make sure the cost can be lower and productivity is high.Â

The third strategy is low fare and no frill whereby providing the services without promises on the quality.

The last strategy is providing more different distribution channels such as Airasia Mobile and booking website for the customers to check the booking and the flight schedule information's.

(Airasia, 2010)

6.0 Airasia Communication Campaign Cost Outline

Cost

2008

2009

Revenue

RM 2,81,526,000

RM3,072,049,000

Marketing Communication Campaign Cost (Avdertising, Direct Maketing and Public Relation)

RM 5,630,520

RM 61440980

(Reference: Airasia, 2009)

Airasia is using 2% of the yearly avenue to invest in the marketing communication campaign in order to create awareness of products and services among the communities. (Low, 2010) The costs that spend for 2008 are RM 5,630,520 and RM 61440980 for 2009.

7.0 Methods of measuring the effectiveness of the marketing communication

There are few methods that Airasia can use to measure the effectiveness of the marketing communication in the "Zero Fare" Campaign. The first method is the Pre-Testing whereby the marketing communication concept, targeting group and behaviour are pre-test before the launching of campaign. This test can be done by the qualitative and quantitative method which is giving out survey forms and collect opinions.

The second method is Post-Testing whereby the effectiveness of marketing communication is evaluated after the campaign launching. Airasia can use the behavioural test to measures the responses and perception of consumer on the marketing communication after "Zero Fare" campaign was launched. Moreover, Airasia can also use the sales test which is the measures on the sales and then will get result on the marketing communication effectiveness.

The third method is Tracking Studies which is the study is involves the collection data of the consumer perception toward the campaign. Airasia can use the interview method to collect the data of consumer perception on the marketing communication of the campaign and what message that gets from the campaign. By this, the organization is able to more understand on the consumer perception and a good record for future marketing communication plan.

The fourth method is Likeability test which is testing the level of consumer enjoyment on the marketing communication of the campaign. The result will lead to the sales result and the consumer satisfaction result.

(Fill, 2006)

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