Market Segmentation and Target Market Analysis for Malaysian Airlines

This marketing plan demonstrates the Market Segmentation and Target market analysis for Malaysian Airlines. It discusses target consumers, consumer behavior, and marketing strategies.

Running Head: MARKETING MANAGEMENT
MARKETING MANAGEMENT

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Table of Contents
Introduction................................................................................................................................2
Company background (Malaysian Airlines)..............................................................................2
Market Segmentation and Target market analysis for your chosen organization......................2
Critical discussion of the Consumer Behaviour of the organization`s targeted customers........5
Product....................................................................................................................................8
Price........................................................................................................................................9
Place.......................................................................................................................................9
Promotion.............................................................................................................................10
Marketing objectives (3 years).................................................................................................10
Marketing Mix action plans over this 3 year planning period.................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
This marketing plan demonstrates the Market Segmentation and Target market analysis for
Malaysian Airlines. This report will discuss target consumers in favor of Malaysian Airlines.
Moreover, it also critically evaluate the Consumer Behaviour of Malaysian Airlines targeted
customers. Further, it discusses marketing objectives for Malaysian Airlines that will be
accomplished in the upcoming 3 years. At last, it also discusses the marketing mix actin plan
for 3 years with respect to Malaysian Airlines.
Company background (Malaysian Airlines)
MAG (Malaysia Aviation Group) is a national aviation company with equity investments and
subsidiaries. It classified their business in different groups like Ground Services, Aircraft
Leasing, Talent Development, and Transportation Services. In addition, it is examined that
this group structure was developed to drive effective transparency and concentrated top
management across a particular operating firm, developing profit subsidiaries of the firm’s
separate trades. It ensures loss and profit responsibility and solves the different aspects by
lashing new levels of operational effectiveness (Malaysia Airlines, 2019). In addition, it is
examined that the profit and loss account of the firm relies on a different value of assets. It
also facilitates to perform many activates related to the accomplishment of their task.
Furthermore, it is found that Air Transportation offer the largest services to the specified
consumers and leads to get huge amount of competitive benefits. An organization provides
many services to their consumers that will be effective to meet the aim and objectives of the
research matter.
Market Segmentation and Target market analysis for your chosen organization
The segmentation of market is an imperative tool for classifying market, customers, and
products on behalf of different factors for increasing the sale of organization and reach the
valid conclusion. There are many factors that might be considered by the firm at the time of

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classifying their products like demographic factor, psychological factor, psychographic
factor, behaviors, and geographic factors (Zutshi, et al., 2016). Moreover, it will lead to the
firm to simply sell their goods and make its diverse image in the marketplace (Suki, 2014).
Segmentation variables
The market targeting is the tool that is practiced for focusing on the small unit on people on
the whole market. Malaysian Airlines will focus on these factors like demographic,
psychographic, geographical, and behavioral factor and operate their business at the global
level.
Demographic factor
As per the demographic factor, the organization has mainly targeted the people who come in
the age group of more than 14. It is evaluated that more than 25 years of people are more
used this Airlines. Hence, the organization could mainly focus on those consumers who are
high income. It could offer many attractive offers to their loyal consumers on a specific
occasion. It could mainly focus on the consumer who comes in the age group of 14 to more
than 35. In addition, the quality of services is standard hence the organization determined a
higher price for their consumers to reach the valid conclusion. Another component is the
social inspiration of behavioral classification and expectation, which can be practiced by
Malaysian Airlines to classify by Malaysian Airlines to classify the market. Consequently, it
could contribute to increasing the profit and revenues of the research outcome (Stadtler,
2015).
Psychographic Segmentation
In this classification, the organization will segment the market on the basis of consumer
attitudes and lifestyles of the consumer. Through this, the organization could set their price
for influencing the behavior of consumers and lead to get a favorable decision. As a result, it
could also contribute to maximizing the revenue of the firm.

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Geographic Segmentation
Malaysian Airlines could segment their market by considering different elements like
national, international, and regional to capture the attention of a huge number of consumers
and reach a valid conclusion (Varley, 2014). In addition, it is evaluated that occupation and
income are considered by Malaysian Airlines to reach a reliable conclusion. It will facilitate
the organization for getting higher profit (Schaltegger, Burritt, and Petersen, 2017).
Behavioral Segmentation
The behavioral approach could be effective in the accomplishment of the company’s task.
Malaysian Airlines could lead to an individual in the attainment of the organizational task. It
could be effective in the influencing huge number of consumers about Airlines service.
Moreover, Malaysian Airlines could concentrate on the classification with the loyal class but
it should offer a special discount to their potential consumers and make a positive relationship
with them. It could also lead to retain them for the long-term. It can also provide different
services like a comfortable atmosphere and quality services to their consumers. It will be
imperative in the attainment of the organizational task in limited time and cost (Sengpoh,
2015).
Malaysian Airlines could target to their customers on behalf of certain elements such as
behavioral, demographic, and geographical elements. An organization has mainly focused on
the urban area of people to deliver their services due to the higher prices. A higher price
cannot be affordable by the people who are living in a rural area. In addition, it is examined
that the organization could focus on both males as well as female to offer their services. In
addition, it is evaluated that Airlines services are consumed by both genders (Parveen, Jaafar,
and Ainin, 2015). This Airlines also offers delicious and healthy food to their consumers that
could also retain their consumers for long-term. It would also be imperative in the process of
decision making. Moreover, these Airlines should need to use a cost-effective strategy and

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offer their services at a lower cost due to the increasing sale of the firm. As per the
psychographic elements, Malaysian Airlines could target to consumers who offer their
preference to the quality and comfort rather than pricing.
Positioning statement
Malaysian Airline will concentrate on those consumers who give more value to their time as
it saves the time of consumers. It could also facilitate to comprehend the people who wish to
have quality services rather than normals services. Prices of Malaysian Australian is quite
costly as compared to other Airlines. In addition, it is evaluated that there are certain
elements that might be considered by the firm to attract a huge number of consumers like
modern technology, comfortable atmosphere, and prompt services (Parsons, Maclaran, and
Chatzidakis, 2017). In addition, a fim could imply innovative technics to meet tgeir targetd
goal. In addition, it is also evaluated that employee training and development method is vital
in retaining employees in the long-term. It could also help to create a favorable picture among
consumers by enhancing the level of service and will provide the added value to the
consumers. In addition, it could also be imperative in leading consumers to pay hike rate for
offering a comfortable atmosphere. It is explained that there are certain factors that might be
considered as a research tool that could be effective in the attainment of the company’s goal
(Noor and Kumar, 2014).
Critical discussion of the Consumer Behaviour of the organization`s targeted customers
Consumer buying behavior
The behavior of a consumer is determined as a selection of certain process like selection,
purchase, use, and dispose of ideas towards products and services for gratifying their needs
and requirements. Moreover, it is evaluated that there are certain activities that activities of
consumers in the market and fundamental inspire for inspiring needs of consumers (Mosbah
and Al Khuja, 2014).

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Maslow’s Hierarchy of Needs theories
(Sources: Mosbah and Al Khuja, 2014).
PhysiologicalNeeds
Psychology needs could facilitate to the firm for comprehending different factors that could
affect the behavior of consumers towards the specific matter. In addition, it is evaluated that
organization could consider different sources such as hygienic environment, superior quality
of food, and comfortable atmosphere. It could also lead to comprehending such factors in
depth and support to make a favorable decision. Moreover, it is examined that the Airlines
industry is imperative in getting a favorable outcome.
Protection and Security
This need could demonstrate the second step of the pyramid wherein Malaysian Airlines
focus on providing the security and safety assurance to their consumers. In this component,
Malaysian Airlines could show quality as well as comfort in flying of plans. Consequently, it
would be effective for accomplishing the desired goal of the firm. It will increase the revenue
of the research outcome (Leong, et al., 2015).
Love and Belongingness
This step could consider the certain elements named family, intimacy, and friendship. It
would need the facility to the organization for making the liaison between the firm and
customers. Hence, Malaysian Airlines could generate the opportunity to the firm for making
higher productivity in the least time and cost.

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Esteem
In this step, consumer needs are associated with appreciation and recognition feelings.
Moreover, there are two different factors that might be considered as the esteem like needs of
consumers are high as well as lower (Kotler, Keller, Ancarani, & Costabile, 2014). Through
this way, the lower need of consumer could concentrate on recognition as well as appreciated
by different consumers. In addition, it is evaluated that there are certain elements, which are
considered as the esteem named self-esteem, independence, freedom, and achievement.
Hence, the organization should concentrate on such elements to fill the self-esteem needs of
consumers, which will impact on the productivity of the organization.
Self-actualization
Self-actualization could need to determine the individual growth and accomplishment of a
consumer’s need. Moreover, this component has relied on self-need and individual drive of a
consumer at a strong point in a strong point. Malaysian Airline could include such a need in
its approach to sustaining its consumers (Kim and Mauborgne, 2014).
Other factors that influence consumer behavior
Social factor
There are certain elements like the reference group and social classes that might influence the
behavior of the consumer. Therefore, Malaysian Airlines could facilitate to offer certain sort
of amenities such as festive season, discount on weekends, and attractive ticket return policy.
Moreover, it could be imperative for providing luxury services to their consumers for a
healthy atmosphere at the working place. Following have certain social elements that might
attract a huge number of consumers to purchase goods and services of a firm (Gummesson,
2017).
Reference groups

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The reference group is effective for spreading reliable information towards the organizational
goal. The perception of reference could be different as per products and services. For
illustration, if goods and services could be perceptible such as flight facilitates then it attracts
the reference group in the least time and cost. It could be informal as well as formal. Through
this method, friends, schools, and peers are informal references for the group (Guercini, et al.,
2014). In this, it is found that association, religious, and clubs are could be effective in the
accomplishment of the organizational task. In addition, clubs, association, and religious is
determined as a formal reference group. It is evaluated that a consumer could also be known
as an informal reference group while celebrities could be determined as the formal reference
group. Malaysian Airlines select the celebrity to attract a huge number of the consumer for
using services of Malaysian Airline. Celebrity could directly influence an individual towards
any products and services.
Social Classes
Each society considers different social class which is required in the marketing of a
company’s products and services. The consumer buying behavior fully relies on the social
class. Therefore, the company should consider the social class to perform marketing
practices. In addition, it is examined that social class could have a favorable impact on the
buying behavior of consumers. Apart from this, the disposal income could directly impact on
all class of society (Ghaderi, Mat Som, and Wang, 2014). In addition, it is examined that
high-income people give more preference to have Airline services as compared to lower
income level people. Moreover, low-class people have less capacity to the consumer the
services of Airlines. Hence, it is examined that the social class could affect the decision
making of consumers towards any goods and services.
Marketing strategies to influence the consumer purchase decision towards Malaysian
services

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4 Ps
The marketing mix is effective for promoting goods and services and facilitates to make a
positive image in the marketplace. It could contain four factors like the product, price, place,
and promotion. These are discussed below:
Product
Malaysian Airlines is leading by the Airlines industry that facilitates different kinds of
service as it could be associated with intercontinental, domestic, regional, international, and
schedule services. Moreover, product strategy leads to an organization for offering unique
features in their services and differentiate goods and compared to the market player. This
organization delivers a wide category of services to their consumer, which could be vital in
improving the satisfaction level of consumers (Carlsson-Wall, Kraus, and Lind, 2015).
Price
Price strategy will lead to the organization to select a unique method of price and influence a
huge number of consumers towards products and services of the firm. Malaysian Airline has
use price premium strategy wherein it will decide to deliver their services at a higher price as
compared to other Airlines industry (Calisir, Basak, and Calisir, 2016). It is examined that
Malaysian Airline delivers premium products and services to their potential consumers for
increasing the sale of goods and services. Moreover, it is evaluated that Malaysian Airline
could more prefer the higher class people as compared low-class people to deliver their
services. The organization should use offer the vouchers facility to its potential consumers
like $30 vouchers for collecting 2500 points. It could offer shopping card to their consumers,
which will be effective for mechanically recording purchasing decision. In addition, it is
examined that this organization could offer a suitable discount to its consumers and make a
favorable decision (Bharti, Agrawal, and Sharma, 2015).
Place

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The place is another imperative concept for an organization to effectively operate the
business and leads to get a reliable outcome. This organization has mainly focused on the
region to deliver their service. It also focuses to entail feature on behalf of the culture of the
region and make a long-term relationship with their consumer. It could lead to attract new
consumers and retain the existing consumers, which will lead to getting higher competitive
benefits. Furthermore, it could be effective to change the behavior of consumers towards
specific products and services (Amann, et al., 2014). Moreover, it is evaluated that this
organization will deliver their services with high quality that could be extended from the
expectation of consumers as it would lead to getting a favorable result.
Promotion
Promotion is also an effective approach that positively impacts on the behavior of consumers
towards buying any goods and services. Malaysian Airlines could use the innovative tool to
endorse their Airline services and retain their consumers (Al-Jader and Sentosa, 2015). In
addition, it is evaluated that Malaysian Airlines could also offer the scheme of loyalty to their
consumers like ticket discount. Furthermore, it is evaluated that Malaysian Airlines could
also use social media to attract a huge number of consumers by directly meeting with them.
The organization could consider different sources to directly meet with the consumers and
comprehend their experience and needs towards Malaysian Airlines and other Airlines such
as Facebook, YouTube, Google, Instagram, and Twitter. This organization has also practice
newsletter and magazines to spread the awareness of goods and services (AlBattat, and
MatSom, 2014). Consequently, it could be effective for attracting a huge number of
consumers towards the purchasing decision. It offers simple accessibility and obtainability to
consume that develop loyalty among a huge number of consumers. Malaysian Airlines could
offer extensive discounts for their potential consumers. It could also provide gifts and
conduct different promotion method by considering the online media tool. This organization

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could also use the occasional discount to its consumers and make a favorable decision
towards the organizational task. In addition, it is also examined that a wide promotional tool
could assist the organization to reach the specified target and make higher competitive
benefits in the marketplace (Acar and Puntoni, 2016).
Marketing objectives (3 years)
 To increase the revenue by entailing innovative tool by 40% in the upcoming 12
months
 To enhance market share by implying a premium pricing strategy by 30% in the next
18 months
 To increase consumer demand by using online modes by 20% in the next 6 months
Marketing Mix action plans over this 3 year planning period
The marketing plan could lead to activities that will be accomplished in the marketing as it is
shown by the following table:
Marketing
Activities
Time period (in weeks) (3 years)
1-
18
19
-
37
38-
55
56-
73
74-
91
92-
109
110-
117
118-
145
146-155
Identification of
Problem
Market research and
development
Product
development

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Creating a pricing
strategy
Addressing placing
strategy
Develop sale
promotion by
considering
different channels
Follow up
With respect to the above table, it can be illustrated that there are many activities that will be
considered as marketing activities such as identification of the problem, market research and
development, and product development. Others are creating pricing strategy, addressing
placing strategy, develop sale promotion by considering different channels, and follow up. It
is also addressed that Market research and development activity takes more time as compared
to other marketing activities.
Conclusion
As per the above discussion, it can be summarized that marketing segmentation is an
imperative tool for classifying their market on behalf of different factors like demographics,
geographical, behavioral, and psychological factors. The main cause of selecting these causes
is that organization desire to classify their goods and make higher competitive benefits. It can
also be illustrated that target market analysis could be imperative to evaluate the market and
identify the people to which organization will deliver their products and services. It can be
summarized that the organization could evaluate the factors that might affect the Consumer
Behaviour for increasing the sale of the organization in the least time. It can also be

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illustrated that organization makes marketing goal as well as a marketing plan that will be
accomplished in the upcoming 3 years and get higher competitive benefits.

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