Evaluation of Marketing Strategy for Air New Zealand Limited

Marketing Strategy

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Table of Contents
Introduction...........................................................................................................................................2
Target Market........................................................................................................................................3
Marketing Mix.......................................................................................................................................5
Product strategy................................................................................................................................5
Place strategy....................................................................................................................................5
Pricing strategy..................................................................................................................................6
Promotion strategy............................................................................................................................6
Advertising program......................................................................................................................6
Personal selling..............................................................................................................................6
Sales promotion.............................................................................................................................7
Organisation and Control......................................................................................................................7
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

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Introduction
In this report, the marketing strategy for Air New Zealand Limited will be evaluated to understand
the key factors which the company should consider while expanding its operations in new market.
Malaysia is selected as the potential target market for Air New Zealand in this report. Various factors
relating to the target market will be identified in this report such as characteristics based on
demographics, values, psychographics and geography, basic needs, preference and requirements of
customers, buying habits and consumption and disposition characteristics. A marketing mix will be
conducted in this report in which product, pricing, distribution, and promotion strategy will be given
for Air New Zealand. Lastly, organisation and control policies will be given in which the approach to
implementing marketing strategy will be identified along with recognition of any changes in
organisational structure, internal marketing strategies and implementation of schedule and timeline.

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Target Market
Malaysia is identified as the target market for Air New Zealand because the company has not
established its operations in the country which has many potential growth opportunities. This
segmentation report will evaluate key information regarding Malaysia such as similar needs, product
offerings, characteristics, and behaviour of customers in order to evaluate and understand the
market and potential growth opportunities available in the country for Air New Zealand.
Geographic traits
Malaysia is a country situated in Southeast Asia, and it is a federal constitutional monarchy which
consists of 13 states and three federal territories which separated into two similar-sized regions,
Peninsular Malaysia and East Malaysia by the South China Sea (Andaya & Andaya, 2016). Although
the size of these two regions is similar, however, there is substantial difference in their population
size. Almost 80 percent of the Malaysian population resides in West Malaysia, and the rest of the 20
percent resides in East Malaysia. Currently, the total population of Malaysia is 32.21 million from
which 1.73 million reside in Kuala Lumpur which is the capital of the country (Worldometers, 2018).
Due to a large number of populations, it is a significant market for airline corporations that wanted
to expand their operations in the country. Currently, Malaysian Airline has exploited the population
in the country; however, there is still opportunity available for new companies to expand their
operations in the country.
Demographic traits
The primary target market for airline companies in Malaysia resides in major cities which include
adults and families who travel for business and vacation purposes. Malaysia is an upper-income
economy which has a GDP per capita of 11762.10 USD, and it is expected to grow around 12227.40
USD in 2020 (Trading Economics, 2018). The corporation has a growth rate of 5.9 percent which is
higher than many other Asian countries such as Singapore (3.6 percent), Indonesia (5.1 percent) and
Thailand (3.9 percent). Most customers earn a decent living, and they prefer to travel abroad during
holidays. The number of businesses operating in the country is also high; therefore, there are many
business persons who choose flight option while travelling. The population is relatively young as the
median age is around 27.7 years in the country (Statista, 2018). The top key concerns of citizens are
job security and nation’s fiscal status. Although saving intentions are high among Malaysian citizens,
however, they also prefer to spend their money on new technologies and holidays which makes it a
lucrative market for airline corporations.