Malaysia Airline started on 12 October 1937. On 2nd April 1947, Malaysia Airlines took its first commercial flight as national airline. Malaysia Airlines changed it name to Malaysian Airlines Limited after the formation of Malaysia in 1963.
After that, Borneo Airways had incorporated into Malaysia Airlines Limited, within 20 years Malaysia Airlines Limited grew from single aircraft operator into a company with many employees.
A new logo was introduces and the airline grew exponentially with new services to Perth, Taipei, Rome, and London. However, in 1973, the partners went separate ways. Then Malaysia Airlines Limited was subsequently renamed Malaysian Airline System or in short, Malaysia Airlines. Now, Malaysia Airline flies around 37000 passengers daily to some 80 destinations worldwide.
Malaysia Airline holds a lengthy record of service and best practices excellence in the last 10 years.
The competitor’s background I. Air Asia’s Air Asia was establish since 2001, Air Asia has broken travel norms around the globe and has leading airline with the dream of making flying possible for everyone. Air Asia is for low-cost aviation through their innovation solutions, efficient processes, and passionate approach to business. Air Asia X was establishing in 2007 to provide point-to-point networks to the long-haul business.
Air Asia X committed to offer X-citing low fares, X-emplary levels of safety and care, an X-traordinary in-flight destinations in Australia, China, India, Middle East, and Europe.
II. Berjaya Air Berjaya Air formerly known as Pacific Air Charter was incorporate on 15 August 1989. A team of experienced, able, and highly skilled pilots, some with Air Force training, forms Berjaya Air. Other than that, Berjaya Air is fast gaining recognition as one of Malaysia’s premier domestic airline, with a growing reputation for versatility, efficiency, and impeccable professionalism.
Berjaya Air all united with one aim; to provide our valued passengers with reliable and dependable flight service.
Target audience analysis Malaysia Airline is 5-star airline Company, it more target on those customers that look for good quality of services rather than the price. For destination of Mas airline, they are more focus on Asia area, and other places seem like China, Mas airline only target on Beijing, Guangzhou Hong Kong city shanghai and Taipei. And also target on few of the place in Oceania and Europe.
Basically, Malaysia airline can different into three different levels of classes, they are first-class, business class and economic class. The First-class slogan is “Any more personal, it’d feel like your personal jet”, which is more targets on the customer that cares about the quality of services. The business-class slogan is “Where the journey is as rewarding as the destination” the price and services of this package is cheaper than the first-class but higher and better than the economic-class, this class is design for businessman they have enough places to process their business on the plane.
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And the economic-class is more suitable for those customers with family, it is cheaper than other package but still with comfortable services level. From this three packages, Malaysia airline already target on high-income level, middle-income level and lower-income level customers. On the other hand, Malaysia airline provide many type package on the website for example, Flight + Hotel, suitable for those businessman that go different state for doing their business and with this package Mas airline also solve the problem of Hotel for them.
Flight + Tour, this package is design for those people who like to travel to the interesting places and other packages. Other than target on human services, Mas airline also target on business field, it provides airline transportation services in worldwide. In this service, Mas airline cover more than 100 destinations across the world but more focus on transportation among Asia. Competitive analysis One of the largest competitive company for Mas airline is AirAsia. AirAsia was established in 1983 and began operations on 18 November 1996.
The mission of AirAsia is “To attain the lowest cost so that everyone can flywith AirAsia” and“Maintain the highest quality product, embracing technology to reduce cost and enhance service levels. ”AirAsia unit selling point is offer the cheaper price ticket, to fight with its competitor. AirAsia offer many low price tickets for customer to bid online, some even free ticket for them, to achieve that everyone can fly. Besides, the cheapest price of Mas airline ticket is more than RM200. Furthermore, AirAsia provide many packages and promotion to attract customer to choose their product.
Besides AirAsia, Berjaya air flight also a strong competitor for Mas Airline, Berjaya Air is more recognized on Malaysian regional, Berjaya Air Company more focus on services and security but obviously Mas airline is better than Berjaya Air. From advertisement, Berjaya Air is lack promote their product, and the good will is lower than Mas airline, but the price is cheaper than Mas airline. On the other hand, Berjaya Air offers very less package and destination for customer. SWOT ANALYSIS Strength Malaysia Airlines is one of the companies that established for more than 70 years and its brand image has been highly recognized.
Malaysia Airlines had put their full effort on their branding and publicity and it have revolved their flight crew which different with most other airlines that tend to emphasize aircraft. Malaysia Airlines have their own branding strategy that attract attention to promote their airline which is try to portray cabin crew of Malaysia Airlines as representative of Malaysian friendliness and hospitality. For example, the slogan of “ MH is Malaysian Hospitality ” is to promote Malaysian culture and hospitality. It emphasizes the hospitality of its cabin crew instead of the airlines.
Besides, the slogan for Malaysia Airlines “ Going Beyond Expectation ” on 2007 is to brand itself internationally by promoting its service excellence and quality as their own objective. Other than that, Malaysia Airlines runs a training program for cabin and flight crew to ensure the customers are having the best service experience. This results airline holds a lengthy record of service and best practices of having more than 100 awards. Weakness Although Malaysia Airline provide excellence services, but if compare with other airline company, the cost offered by Malaysia Airline is more expensive than other.
This is due to the costs needed for the maintenance is high because Malaysia Airline is a 5 stars company. From the price segment, Malaysia Airline is hard to compete with other airline in Malaysia. It also shows that Malaysia Airline is target on high income group that have can effort the high rate of airline tickets. In addition, Malaysia Airline is providing services that need a big capital to run business effectively. So, the risk that might be happened in future is high. Opportunity Malaysia airline has won several awards in recent years.
This make Malaysia Airline reputation more well know by other people. Malaysia Airline can make more effort and innovative services in crew. For example, they can create a luxury class at the airplane which has individual bed and a television. This will make customer feel more comfortable especially long distance flight. Customer will enjoy luxury services in the airplane. Threats Changes in economy will directly affect every business positively and negatively in many aspects. If the economy are having crisis, it will affect the whole business globally.
Malaysia Airline has many connections throughout the world and it will give a big impact to company. High oil prices also a threats that facing for Malaysia Airline. If the price of oil is high, then the cost of the airline will also increases, thus will affect the price of the ticket. In addition, any resurgence of a pandemic such as bird flu would affect all tourism in Malaysia. If there is terrorism happen in the area of certain country, Malaysia Airline need to stop their flight destination to that country for certain time.
It is because it will be dangerous to all people and the whole crew as well. Marketing Analysis Branding Strategy According to The American Marketing Association ( AMA ) defines a brand as a “ name, term, sign, symbol or design or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. ” Branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.
There are few objectives that a good brand has to achieve as what Laura Lake said “ To delivers the message clearly, to confirms your credibility, to connects your target prospects emotionally, to motivates the buyer and to concretes user loyalty. For current market position, Malaysia Airlines has delivers the message clearly to target market as what they have enhanced in their corporate slogan which is “ MH is for Malaysia Hospitality. ” An excellence service is provided by Malaysia Airlines that try to portray cabin crew of Malaysia Airlines as representative of Malaysian friendliness and hospitality.
Malaysia Airlines try to emphasize the hospitality of its cabin crew instead of the airlines. Besides, Malaysia Airlines runs a training program for cabin and flight crew to ensure that the Malaysia Airlines brand experience is delivered correctly. Malaysia Airlines is a full service airline, so all staff training and marketing strategies are geared towards customer service. To maintain the staff standards in other areas apart from pay, communication manager helps to maintain these standards by constantly communicating with all employee at the airlines.
This can help to maintain the idea of “ Malaysia Hospitality” and quality service throughout the company. Besides, to promote the idea of Malaysia Hospitality, Malaysia Airlines offer unique products that have their roots to the Malaysia textiles, carving that portray Malaysian unique identity. The female cabin crew uniform was designed using batik which depicts the kelarai motif which is a bamboo weave pattern. Superimposed on the kelarai motif is a mixture of Malaysian flora, such as the cempaka, jasmine and the leaves of the hibiscus.
In order to confirm the credibility of branding, The Malaysia Airline Academy was set up in October 1994 as the Human Resources Development Division of Malaysia Airlines. It is the starting point of every person’s career in Malaysia Airlines. It was established due to the need to centralize training and provide integrated services that would meet the growing demands and importance of training. Beside that it set the standards that build the Malaysia Airlines world standing. As a result, it can be built up the image of credibility and trusted brand in Malaysia.
To connect target prospects emotionally, Malaysia Airlines has convey the advertising message for example “ What is MH? ” It convey the message by saying that it not just a flight code, it’s our code of behavior, our reminder, to treat everyone as a guest. It try to playing people emotional by saying that Malaysia Airlines not only tend to emphasize the aircraft and extensive route network, but it provide nonstop conveniences, nonstop comfort, nonstop MH. People will have a luxury services at Malaysia Airlines.
So, with the advertising messages conveyed by Malaysia Airlines by enhancing the services, it is strong enough to target the prospects emotionally. The only way to motivate buyer to purchase a product is using sale promotion tools. For the long term of customer relationship between the brand, Malaysia Airline has been launching campaign for the customer. In order to inform customer the latest promotion activities, the official website of Malaysia Airlines will keep updating their promotion message. With these, it can be convey the message efficiently to target market and motivate the buyer.
Product Strategy Malaysia Airlines are providing flight services. Malaysia Airlines more competitive with the rapid increase of the low cost carrier (LCC) segment, continued growth of the Middle Eastern full service carriers and revival in the fortunes of Asian full service carriers. Malaysia Airline’s competitors are now selling low-cost air ticket but the seats they provided are not as comfortable as Malaysia Airlines. Malaysia Airline’s target audiences are more to business people because the time of the flights is more convenient and suitable for them.
Business people like the comfortable seats so that they can do their work along the way, peaceful environment so that they can relax or have a nap meanwhile reaching their destination. Malaysia Airlines promotes their flight tickets to their customers more than random buyers do, they will eventually send emails to their customers about the promotion / price specifically to the place where the customers are more registered. Malaysia Airlines also have Kid’s corner, so that the parents can have no worries on their children and let them have their independent travel.
If child is travelling alone, there will be special assistance crew is on hand to provide friendly reassurance and guidance. If there is long wait before boarding, children will be inviting to relax and enjoy some light refreshment at the Malaysia Airlines special lounge. Malaysia Airlines also provided select-in-flight entertainment system offer high quality entertainment onboard. Other than that, Malaysia Airlines also provide temptations eShop. It is to enrich members to redeem their products.
There are many items for customers/ members to get it on the spot when they are onboard or before boarding. For example, apparel, beauty product, electronic, fragrances, stationeries, timepieces and many more. Members / customer can choose to mail order or self-collection at any time after purchasing it. Product-life cycle During the introduction stage of product life cycle, MAS airline was the best airline in Malaysia and it was the only airline in Malaysia. They promotes the destinations to as many countries as possible, airline grew exponentially with new services to Perth, Taipei, Rome and London.
Growth and Maturity stage for MAS airlines was improving the services although they have won the best “Economy Class Onboard Service Excellence 2006” and add more services for example Kid’s corner. It provides full service on your kids travelling independently until a destination. Latest services they provide was “Select-in Entertainment” were the customer on board could enjoy their movie while waiting to reach a destination. Other than that, they had almost reached to the decline stage because of the competitors were too strong and during 2008 they came up with a new “Business Turnaround Plan” to boost their business up.
They even have airbus and also new aircraft with better service.
According to Nach M Maravilla, pricing is more than just about numbers; it is a play on perception. In many cases, the psychology of pricing is more important than the actual price itself. So, Malaysia Airlines use psychological pricing approach for the tickets. This approach is used when the marketer wants the consumers to respond on an emotional, rather than rational basis. For instance, RM 99 will appear a lot cheaper than it really is compare to RM100.
On the other hand, Malaysia Airline also uses promotional pricing strategy to attract more people to buy the tickets. Malaysia Airline will have a special offer in certain period to attract people. Other than that, Malaysia Airlines offers MHcoupon which enables people to enjoy exclusive saving on Malaysia Airlines flight tickets instantly. In addition, the method of redeem MHcoupon is easy; people just need to enter MHcoupon code, select preferred departure date and proceed with payment. Furthermore, Malaysia Airlines offers quality service at an affordable price.
A great air carrier for holiday makers seeking great deals on holiday packages or irresistibly cheap ticket for business class flights, Malaysia Airlines has flights to suit any budget. Distribution Strategies MAS airline have distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organization is to meet its overall marketing objectives. If an organization underestimate demand and customers cannot purchase products because of it, profitability will affected.
MAS airline using direct distribution involves distributing direct from a manufacturer to consumer. For example, MAS send direct message from their advertisement to the consumers. If customers have order any items from MAS “Temptations in-flight shopping”, MAS will mail order to the customers who have make an order or directly or you choose to pick up at any location you wish to. MAS Airline also used exclusive distribution because they might mail order to you whenever you have order from them. Furthermore, it will be easier to or everyone to receive his or her goods. MAS airline will use their own courier services to deliver the items. Promotional Effort Malaysia Airlines has used advertising as the main media channel to deliver the message to public. Advertising is the most common media channel used by an organization to advertise products and services because of wide reach of audience and low cost per expose. Malaysia airlines have created a short video to advertise the slogan “MH is Malaysia Hospitality”. The message is clear and directly reaches to customer.
Besides, Malaysia Airline also used promotional tool such as contest had been apply to increase the awareness and to stimulate the sales. For example, Malaysia Airlines organized The Big flight contest to attract people. Through this contest, people will know about the new Malaysia Airlines A380. Malaysia Airlines The Big Flight contest offers a chance to people to eight winners to fly the historical Malaysia Airlines A380 Joyride. Each winner receives one ticket for themselves plus three other tickets so that they can bring guests.
Those promotional approaches can help to generate publicity to discuss on it during a time when they are not introducing new products. Generally, a successful selling begins and ends with the customer. So Malaysia Airlines is a successful company. Summary of Problem and selling opportunity Malaysia Airline facing some problem in the market firstly is the problem of price. Mas Airline facing loses is because of the competitive lowest price offered by Air Asia always making offer and promotion throughout the festive and seasons.
Therefore, Mas Airline making loses for those people who seek for economical and lower price range air flight. In order to overcome this problem, Mas Airline has some advantages to against. Since from the beginning Malaysia Airline always providing the service and hospitality to every single class of the people To keep the customer who seek for lower price, Malaysia Airline should provide more incentives for people who uses master card and visa card where they can have more rebates after purchase.
For those existing credit card holders, they will receive an offer letter from Malaysia Airline with their Credit Card monthly bills. Insert a customized postcard and envelope with the flight pricing during the promotional period for the certain destination. Promotional Campaign Theme: Experience the unforgettable flight experience Description: Enables the customer enjoy the 5 star airline service even with economical class. Target audience: People who are Visa credit card holder and seek for affordable price.
Promotional mix efforts First of all, the one will be going to involved in is through television broadcast, where the exposure of the period will be 2 months and a month before festive seasons of celebration of Hari Raya Aidilfitri. The purpose of this campaign is for whom wanted to travel during festive seasons especially peak holiday like such as in Malaysia may not favorable period to travel where the traffic will be congested. This campaign wills an ideal suggestion for the people who wanted to travel at the same time.
Secondly, the medium that will be used is print ads for newspaper, some of the travel magazine in Malaysia and as well as direct mail to the respective credit card holder. It will be ideal suggestion for them as well as family members who do not celebrate the Hari Raya Aidilfitri during the month. Last but not least, the campaign purpose is to targets the people who are Visa Credit Card holder who seek for affordable price. A direct mail will send to the respective targeted audience to promote the incentives for the credit card holders where they can enjoy the rebates and incentives from their credit card banks respectively.