Introduction Of Air Asia Marketing Essay

1391 words (6 pages) Essay

1st Jan 1970 Marketing Reference this


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Air Asia is an airline which was established in 1993 and started its operations on 18 November 1996. On 2 December 2001, the heavily indebted airline was purchased by former Time Warner executive, Tony Fernandes’s company, Tune Air Sdn Bhd for the token sum of one ringgit. Fernandes then proceeded the engineer a remarkable turnaround, turning a profit in 2002. Fernandes then proceeded the engineer a remarkable turnaround, turning a profit in 2002. Air Asia is set to take low-cost flying to an all new high through their philosophy of ‘Now Everyone Can Fly’. Their vision is 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. Beside that, their mission is to create a globally recognized ASEAN brand, to attain the lowest cost so that everyone can fly with Air Asia, to be best company to work, and maintain the highest quality products by embracing technology to reduce cost and enhance service levels. They make the low fare model possible through the implementation the six strategies: safety, high aircraft utilization, low fare & no frills, streamline operations, lean distribution system and point to point network. As Air Asia continuously strives to promote air travel, they also seek to create excitement among their guests with their range of innovative and personalized service. their guests with their range of innovative and personalized service. their guests with their range of innovative and personal ss 2. b. Discussion on the Performance Measurement System Air Asia use

Air Asia is using Customer Relationship Management (CRM) as their performance measurement system. This performance measurement system is putting customer at the heart of the business. It satisfies the customer needs and wants. It is strategy and process of acquiring, retaining, and partnering with selective customer to create superior value for company and the customer. This will then increase the shareholders wealth and company value in the long term. According to the Chairman of Air Asia, Dato Abdul Aziz, the core of the company is to provide excellent service and all the staff in the company is trained to put customers as their priority. This has shown the company concern of customers’ relationship. Thus, Air Asia has started to implement CRM as their performance measurement system on March 2009. is strategy and process of acquiring, retaining, and partnering with selective customer to CRM in Air Asia helps the company to target market, increase merchandise and launch various promotions by analyzing knowledge about customers. Air Asia official website includes the necessary information such as destination, hospitality, transportation, climate information as well as recommendation. This could convenient the customers in gather information for their decision making. Other than that, Air Asia has an effective CRM system to address the route that has proven to be lucrative and delivered sustained profit which is Malaysia – Singapore route. Therefore, Air Asia has increased the flight from Malaysia to Singapore on 2009. In the effort of customer retention, CRM helps the company to identify loyal customers and implement loyalty programs to treat them better. In addition, CRM recognized and analyzed the buying pattern of the customers. From here, Air Asia can increase flights, number of seats and at the same time provide packages, hotels and number of staying days in tourist locations. In addition, customers will receive information such as travel guide and suggested destination by SMS. These efforts could help the company to acquire more potential customers in align with CRM. Hence, Air Asia managed to secure the first cycle of the CRM which has tremendous effects on the entire chain cycle.Lastly, according to Skytrax Airline Ranking, it was clearly define theLastly, according to Skytrax Airline Ranking, it was clearly define the satisfaction Lastly, according to Skytrax Airl 2. c. Advantages of Customer Relationship Management (CRM)

i) Cost reduction. With the implementation of CRM, it would help to reduce the operational cost in the company. CRM is the performance measurement system that implement under cross functional integration of the processes, workers, marketing data and operation in the company. With the integration of the components in the company, it could enhance the efficiency and effective in the daily operation in the company and therefore, cost of operating can be reduced significantly. Other than that, CRM detects and alerts to the management the poor operational processes in the company. With this, management can perform corrective action and step and thus, it could lower the unnecessary cost incurred in the operation.

ii) Increase customer satisfaction. The main objective of CRM is dealing with long term and sustainable customer relationship by satisfy every customer. CRM provides company the systematic data regard to customer value and information which are useful to allow company to execute the steps and attempts in customer relationship. In addition, CRM supply the complete and crucial information about every customer which help company to identify the profitable and potential customers. The information and data can be obtained from CRM are such as personal details of the customers, buying patterns and demands of the customers. The management in the company could then launch the comprehensive efforts to satisfy the customers in accordance with their needs, demands, preferences, and requirements. Customers are considered satisfied not only they obtain what they want but also their perceived value of the particular product and service is exceeds their expected value. Hence, satisfaction of the customers can be increased when the company is able to constantly provide products and services that above customers’ expectation.

iii) Growth in number of customers. CRM upholds two major principles which are customer retention and customer acquire. Customer retention is dealing with retain the existing customers to avoid loss of customers while customer acquire is to attract new customers and therefore increase the portion of the customers. With CRM, company manages to commence various loyalty programs to reward the identified loyal customers. This is one of the efforts in performing customer retention. Other than that, the company could acquire new customers by execute some promotions to attract potential customers through communication medium such as telephone, emails, internet and sales visit. When the company is successful in retain and acquire customers, the numbers of customers is will certainly grow.

iv) Improved marketing strategies and competitors information. CRM ensures the company to focus to external components such as customers, markets and competitors as well. By implementing CRM, the company can improve their products marketing strategies and plans. With the help of CRM, the company could measure their marketing efforts such as marketing campaign, marketing promotion and figure of sales, so that, corrective action can be taken for improvement. In addition, CRM too facilitates the company in optimizing and controlling the marketing, sales and processes. Other than that, CRM enables company to access to competitors information in the sense of using market intelligence to track competitors information as well as analysis of customers’ trend.

v) Provide long term profitability and sustainability. CRM is a tactical approach that enables company to generate long term profit from the sustainable customer relationship. CRM integrates the marketing strategies and information technology to create long term profitability that derived from relationship with customers. Cost reduction from CRM could avoid the company to operate at low cost. Customer satisfaction and high customer numbers is the core of company earnings. Lastly, effective marketing strategies and competitors’ information allow the company to success. These factors contribute to company long term profitability. When the profit is high and maintained so as the shareholders’ wealth.

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