Marketing and Management Case Study 2022

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MARKETING & MANAGEMENT
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7/28/2019
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MARKETING & MANAGEMENT 1
Contents
Introduction......................................................................................................................................2
Air Asia SWOT analysis.................................................................................................................3
Air Asia marketing mix strategy lead to the market leader.............................................................4
Product strategy...........................................................................................................................5
Pricing strategy............................................................................................................................6
Placing strategy............................................................................................................................7
Promotional strategy....................................................................................................................7
Latest developments........................................................................................................................8
Transformation to travel Technology Company..........................................................................8
Premium flex...............................................................................................................................8
Premium flatbed...........................................................................................................................8
Recommended competitive advantage strategy...............................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

MARKETING & MANAGEMENT 2
Introduction
Marketing goods and services are the critical decision-making process that will lead to reaching
out the manufactured goods and services to final users. There are various factors responsible for
the success of an organization in an industry, which would be discussed in report considering
various strategic tools like SWOT analysis, and marketing mix (Kotler & Keller, 2015). The
purpose of the report is to analyse an organizational case that is of Air Asia to understand the key
factors responsible for the company being the market leader. The case study includes the
historical background that rapidly directed towards the market leading company as Air Asia
(airasia, gb, 2019).
Air Asia was originally Malaysia airline, which was transformed into Air Asia after taken over
by a private company. The unique selling proposition of the brand is low cost carrier with a
vision to provide a reasonable cost for air travel and enhancing the customer’s lifestyle and way
to travel across whole Asia (airasia, payment-channels, 2019). It has been identified that Air Asia
has transformed its marketing mix strategy in order to gain the position of marketing leader in
the industry that will be discussed in the report further.

MARKETING & MANAGEMENT 3
Air Asia SWOT analysis
The major strengths that are responsible for the journey of the company to reach out to the
market leader and the hurdles that the company has faced during the journey would be assessed
through the SWOT analysis tool (Greg, 2014).
Strengths of Air Asia
 Low cost, no frills – As per the case, it was researched that the company in mid 1990’s
search for the opportunity in no frills LLC that led the company to work upon low cost
carrier to encourage middle income group to travel through the air in a reasonable price.
 Value added services – The company not only provide the basic product facility, but also
included value added services like online ticket booking, and online check in, which has
made the company gain major attraction from the customers.
 Strong leadership –leadership is another key element found to be the cause for the
company to gain success in the industry. From the case, it can be said that the company
CEO, Fernandes was advertising the brand himself, which reflect the additional efforts by
leaders of the company. Moreover, innovative decision making it more feasible
(Johnston, 2015).
Weakness of Air Asia
 Price war – one of the weakness for the company is a price war with Malaysian airlines,
that have decreased the profit margin for the company.

MARKETING & MANAGEMENT 4
 Flight delays complaints – There have been found various complaints by the customers,
which was the majorly flight delays. This reflected the image of the company reading the
service quality (Schlegelmilch B. , 2016).
Opportunity
 Service innovation – One of the opportunities that the company may found would be an
innovative service provided by the company and service improvement in order to retain
the customers. This may include technological innovation, due to advancement in
technology rapidly in developing nations in Asia like India, Singapore.
 Premium airline as new product development – The company may include new product
development strategy as the company is limited to cost saving carrier airline, which it
may expand the business with new premium product and pricing strategy (Schlegelmilch
B. , 2016).
Threats
 Rate change – Change in rate of the service at airports that may increase the cost to the
company, which would result into increase in the price paid by the customer, which
would reflect over the cost leadership strategy. Or the company’s profit margin would b
reduced
 Increase in cost of maintenance – the maintenance cost could increase for Air Asia in
near future, which may also lead to decrease in a profit margin of the company (Russell,
J.D & Hull, 2017).

MARKETING & MANAGEMENT 5
Air Asia marketing mix strategy lead to the market leader
The marketing mix strategy of the company is the major cause for the success factor and leading
Air Asia to be the market leader in the Asian airlines industry.
Product strategy
Figure 1: (Source: (Adam & Kotler, 2014)
From the above, the product strategy matrix, there is four alternative strategies, where the
strategy adopted by Air Asia was the product development strategy. The reason being the
company was stick to the Asian market to target, but the company kept improving the product
and services, and introducing new products were the key elements of the strategy that led to
market leadership by the company. Thus, it can be said that the product strategy of the company
as responsible for company success (Safari, Safari, & Montazer, 2016).

MARKETING & MANAGEMENT 6
Pricing strategy
Figure 2: (Source: (mindtools, 2018)
According to the pricing alternative strategy available as per the above presented matrix, the
pricing strategy that the company adopted penetration pricing strategy, it has been identified
from the case study, that the company served real five start service in low cost and lower pricing
strategy. Therefore it can be said that the cost leadership strategy of the company as lead to the
market leadership strategy. In addition to this the first mover advantage is another cause that has
led to increased brand recognition, and increase in the sale of the company. As already discussed,
the major unique selling proposition for the company is the lower cost for air travel, which is the
main element reflecting the position of the company as a leader in the market (Muller & Nagle,
2017).

MARKETING & MANAGEMENT 7
Placing strategy
The placing strategy includes the channel for the company to reach out to the end users of the
company. The placing strategy of the company includes services like ticket booking and check in
services, that is placed through two modes that are an offline mode that included getting into
queue at airport physically in order to book the tickets, which seems to be very outdating mode,
and is not used by most of the customers. Another mode included an online mode that would
include online ticket booking, checking the schedule, online check in facility, which is the major
attraction by the customers that save their time and process speed. Thus, it can be said that the
customer online services are another factor leading AirAsia towards market leadership (Balmer
& Abratt, 2016).
Promotional strategy
The promotional strategy is also one of the responsible causes for the market leadership success
of the company. The major promotional tool use by the company is sales discount, the reason
being the company focus is to provide cheap airfare, for which providing discount offers are a
more attractive way to attract customers. Another way to promote is a printed advertisement that
is the hoardings at the highway, especially near airports. The big loyalty program was found to
be one of the main promotional programs to increase customer loyalty and has a major
contribution in perceiving the brand to be the market leader (Tuten & Ashley, 2015).

MARKETING & MANAGEMENT 8
Latest developments
Transformation to travel Technology Company
According to the news in October 2018 of Air Asia, the company has strategies to integrate
artificial intelligence and Google cloud machine technologies into their business element and
activities that lead the company to transform into a travel technology company (thestar, 2018).
Through this strategy, the company would be able to make optimum use of data collection that
would let the company search for new opportunities and grasp in order to gain a competitive
advantage.
Premium flex
Premium flex is the latest flexibility services offered to the customers that are designed to
provide convenience and better journey for the customer without any fuss. This service included
heavier package allowed, selection of the favourite seat is available, and flexi flight service that
is providing the flexibility to the customer to change their flights. Moreover, premium flex
counter at the airport is available, xpress boarding fallibility is also available that is boarding
prior to other members, and other facilities like a complimentary meal in flight (airasia, Premium
Flex, 2019).
Premium flatbed
This is a seat that seems like recliners that consist of comfortable space, with foot and head rest.
Moreover, personal screen, pillow, and higher comfort level seat that is for an additional charge,
but the premium service and comfort are worth paying for the premium customers (airasia,
inflight-comforts/premium-flatbed, 2019). Therefore, it can be said that the key features included

MARKETING & MANAGEMENT 9
in premium flatbed products introduced by the companies are Free Baggage Allowance, Pillow
and Duvet, Premium Red Lounge, Sony noise-canceling earphones, and Travel Insurance.
Recommended competitive advantage strategy
After analysing the latest development that was found to be an effective strategy of AirAsia it
can be said that AirAsia can soar higher. One of the recommended competitive advantage
strategies for AirAsia will be analysed through a generic competitive advantage strategy matrix.
Figure 3: (Source: (Aksoy, 2018)
According to this matrix that four strategies could be a solution for a company based on a source
of competitive advantage and the market that the company wants to compete. The four

MARKETING & MANAGEMENT 10
alternative solutions to competitive advantage include cost leadership strategy, differentiation
focus strategy, cost focus strategy, and differentiation leadership strategy. Since the company is
to target a broad market and not narrow market because of the nature of the airline industry, the
leadership strategy would be only suitable (Chari & Feng, 2018). The recommended generic
strategy for AirAsia included a combination of differentiation leadership and cost leadership. It
has been identified in the report previously, that the cost leadership strategy is one of the implied
strategies for the company that has led to gain AirAsia a position of the market leader. Along
with the cost leadership, strategy the differentiation leadership strategy is also recommended to
company so as to increase the service innovation and lead to new product development in order
to attract more customers that are from higher income group as well. It was identified that one of
the issues that the company faced was delay in flights and similar service quality issues which
must be improved through innovative services. For example, introducing a range of flights for
premium customers that will only include business class seats that will be more comfort table,
integrated with advanced technology that is private screens, special seats for kids as the family
will be targeted. Moreover, in order to attract business persons and working me and women, it
could include seats with laptop spaces (Doole & Lowe, 2008).

MARKETING & MANAGEMENT 11
Conclusion
From Air Asia marketing report, it can be concluded that Air Asia was originally Malaysia
airline, which was transformed into Air Asia after taken over by a private company. The unique
selling proposition of the brand is low cost carrier. The product strategy adopted by Air Asia was
the product development strategy. The company served a real five start service at low cost and
lower pricing strategy, therefore it can be said that the cost leadership strategy of the company as
lead to the market leadership strategy. The placing strategy of the company includes two modes
that are offline mode and online mode. The major promotional tool use by the company is a sales
discount. As per the case, it was researched that the company in mid 1990’s search for the
opportunity in no frills LLC that led the company to work upon low cost carrier to encourage
middle income group to travel through air in a reasonable price, which turns out to be one of the
major strength for the company.
Latest developments of Air Asia include Transformation to travel Technology Company,
Premium flex, and Premium flatbed. After analysing the latest development that was found to be
effective strategy of AirAsia it can be said that AirAsia can soar higher. The recommended
generic strategy for AirAsia included a combination of differentiation leadership and cost
leadership strategy for gaining competitive advantage and soar higher.

MARKETING & MANAGEMENT 12
References
Adam, S., & Kotler, P. (2014). Principles of marketing. Australia: Pearson Australia.
airasia. (2019). gb. Retrieved from https://www.airasia.com/en/gb
airasia. (2019). inflight-comforts/premium-flatbed. Retrieved from airasia:
https://www.airasia.com/in/en/inflight-comforts/premium-flatbed.page?
gclid=CjwKCAjw7O_pBRA3EiwA_lmtfuvFJf7qG3S6wS12pHCY5V0FfBAFyIhQra1jh
3tzn_s3eeknIaukrBoC9CwQAvD_BwE&gclsrc=aw.ds
airasia. (2019). payment-channels. Retrieved from https://www.airasia.com/my/en/book-with-
us/payment-channels.page
airasia. (2019). Premium Flex. Retrieved from airasia: https://www.airasia.com/in/en/premium-
flex.page?
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Chari, S., & Feng, H. (2018). Research in marketing strategy. Journal of the Academy of
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Doole, L., & Lowe, R. (2008). International marketing strategy: analysis, development and
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Kotler, P., & Keller, K. (2015). Marketing Management (15th edition),. New Jersey: Prentice-
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mindtools. (2018). pricing-strategy-matrix. Retrieved from
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