Posted at 10.05.2018
We are tackling the largest immediate profitability challenge for MAS: low produce. MAS has award-winning products and services, a competitive cost foundation and a load factor that is only slightly below average, but we remain losing profits because our produces are less than those of our opponents. Our plan will focus on bettering efficiency and capabilities. We are also will give attention to new development opportunities. We focus on the creation of any company which will be a way to obtain delight and admiration because of its employees and even all its stakeholders. The MAS of tomorrow will maintain steadily its five-star product, have a competitive cost composition in your community, be renowned to be one of the best places to work in Malaysia, have finished a lot of the earnings performance gap to your peers and can return to success in the foreseeable future.
2. 0 Situation Analysis
2. 1 Company Analysis
Malaysia Airlines is the government-owned flag carrier of Malaysia. Malaysia Airlines operates plane tickets from its home bottom part, Kuala Lumpur International Airport, and its secondary hub in Kota Kinabalu. Despite a financial restructuring exercise in 2006, Malaysia Airlines sustains a strong occurrence in Shoutheast Asia, East Asia, South Asia, Midsection East and on the Kangaroo Course between European countries and Australasia.
MAS's non-aeronautical income sources include maintenance, repair and overhaul (MRO), and aircraft handling. MAS has two airline subsidiaries: Firefly and MASwings. It is one of only six airlines to be given a 5-legend status airline by Skytrax. The other services offered by MAS include engineering, hotel operations, wedding caterers, computerized reservation services, coach travel, trucking and warehousing services, retailing of goods, and tour and travel related activities.
MAS have been suffered high losses over the years due to fuel price increases and poor management. Malaysia's government overhauled the functions of the air travel. Under Idris Jala who was appointed as the new CEO in 1 Dec 2005 management.
One of its aims is to make a strategic, timely creative campaign focusing on TIME's readership of international travelers for Malaysian Airlines. MAS has a quest to provide safe, useful, low-cost consumer flights service. Our service will point out basic safety as its highest concern. We will operate the newest and best taken care of plane available. We will strive to operate our flights promptly.
2. 2 Customer Analysis
We have made a survey about customer satisfaction of MAS of test size of 50 people which is 25 people from face-to-face survey and 25 folks from paid survey.
According to the results, almost all of the folks overall satisfaction with the cosmetic promotion package, reasonable price, option of the product, comprehends customer's specific needs; rate of service provided and services are provided without blunder.
Buying a solution of MAS is said to be high-involvement purchase decisions. Consumers may be highly included when the merchandise is expensive and purchased infrequently. Typically, the consumer has much to find out about the product category. Customers of MAS will evaluate the amount they pay with the service them getting.
2. 3 Competition Analysis
The direct opponents are Air Asia and Singapore Airlines. The indirect rival is Celebrity Cruises.
2. 3. 1 Focus on Market
Malaysia Airlines: MAS will provide local and international trip services, majority of the clients of MAS are international flight customers. It really is show that MAS have a certain target market with high income. There simply a few groups of individuals in Malaysia who are able to effort to cover the cost to fly as a result of high rate of airlines tickets. (-) Target market also included business traveller. (+)
AirAsia: Individuals who salaries are show up in the middle or lower income in Malaysia. That's the reason why the AirAsia always use the reduced price strategic to put it is always cheaper than their competitors. (+) The folks who are hypersensitive to price. They will easily draw in and impact by the promotion doing by the AirAsia. This kind of marketplace will easily switch to other rivals who also provide least expensive price or performing a sales advertising. They are likely to purchase the service which is overall economy, valuable and affordable. (-)
Singapore Airlines: The prospective market is local and international customers. (+)
Star Cruises: Aim for market segments are local and international people, households, singles and more mature individuals (+), and income levels completely up to the rich clientele. (-)
2. 3. 2 Product
Malaysia Airlines: Malaysian offers three travel classes on its international air travel services including Overall economy Class, Business Class and First Class. Local services within Malaysia typically only feature two classes (Overall economy and Business). MAS' high quality cabins and Current economic climate Class have won numerous honours for brilliance in product and service delivery. (+)
AirAsia: AirAsia happens to be the largest single customer of the Airbus A320. AirAsia offers only current economic climate class, with free seats and boarding time. (-) Friends can make bookings by having a mixture of ways. AirAsia became the first flight on the planet to introduce SMS booking. (+) The flight practices a quick turnaround of 25 minutes, which is the most effective in your community, resulting in high aircraft usage, lower costs and greater airline and staff output. Ticketless service complements AirAsia's Internet scheduling and call centre service by giving an inexpensive alternative to issuing printed seat tickets. (+)
Singapore Airlines: Singapore Airlines Suites is a school available only on the Airbus A380. A couple of high grade cabin, business course cabin, and market class cabin. They have a strong brand and is also a trendsetter in the aviation industry, especially in conditions of innovation, safeness and service excellence, coupled with constant profitability. (+)
Star Cruises: Current fleet are SuperStar Virgo, SuperStar Aquarius, SuperStar Libra and Celebrity Pisces. They offer a lot more than first class eating out and entertainment and are made to meet up with the changing needs of today's individuals, challenging the conventional style of cruising by providing a more tranquil, resort-style cruise, complete with flexibility and non-intrusive services of the best standard. (+)
2. 3. 3 Prices
Malaysia Airlines: If we compared with other flight companies, the price made available from MAS is more expensive than others. Like a 5 stars flight company, the costs needed for the maintenance and convenience by MAS are very high. Thus, it will effects the real cost that will be purchased by the clients. (-)
AirAsia: Low fares, no frills. AirAsia's fares are significantly less than those of other operators. No complimentary drinks or meals are offered. Instead, AirAsia lately introduce 'Snack Attack', a variety of delicious treats and drinks available on board at very affordable prices and well prepared only for AirAsia's friends. (+)
Singapore Airlines: It needed high fare for specific path. Price offered for First Class and Business Course are incredibly expensive and reasonable priced for Economy School. (-)
Star Cruises: It offered different prices for different routes and more costly than planes. (-)
2. 3. 4 Place
Malaysia Airlines: MAS functions plane tickets from its home base, Kuala Lumpur International Airport and its secondary hub in Kota Kinabalu. MAS run 118 local routes within Malaysia and 114 international routes across six continents. MAS now flies to 88 places. MAS also employed the online scheduling and purchasing. (+)
AirAsia: AirAsia flies to 12 destinations in Malaysia. One criterion for a competent low-cost airline is direct reservation via the Internet. Tickets also may be booked through AirAsia's call middle, or at its walk-in airport sales stations, sales offices or preferred travel companies. (+)
Singapore Airlines: Singapore Airlines flies to 61 vacation spots in 35 countries on five continents. Singapore Airlines supplies the most flights to international locations than every other Southeast Asian air travel. (+)
Star Cruises: Celebrity Cruises is the third-largest luxury cruise line on the planet behind Carnival Company and Royal Caribbean Cruises and dominates the Asia-Pacific market and older markets in North America and Europe. (+)
2. 3. 5 Promotion
Malaysia Airlines: MAS launched the regular flyer program called as "Enrich Frequent Flyer Program" as a part of customer retention strategy. Additionally it is promote through formal website. The brand new branding strategy slogan is MH is Malaysian Hospitality to stress the hospitality of its cabin crew instead of the airline's extensive network and its own high grade cabin and market class cabin products. (+)
AirAsia: AirAsia struck an advertising offer with Time, that will have the local cellular phone operator's logo decorated using one of AirAsia's planes. In early 2005, AirAsia released that it could give away 10, 000 free seating on its plane tickets to choose Southeast Asian locations. AirAsia also has advertisement through tv set and newspaper. (+)
Singapore Airlines: It promote itself by recognized website and through Youtube. In addition, it offers F1 tour package. (+)
Star Cruises: Celebrity Cruises promote through standard website. It really is seldom make ad through tv set and paper. (-)
2. 3. 6 Likely Future Strategies
Malaysia Airlines: MAS start Firefly. It also expanding traveler traffic in Asia Pacific and increasing cargo traffic. (+)
AirAsia: AirAsia will venture in to the cargo business. In addition, it improve its influence in the Western. AirAsia also increase its brand awareness by increase campaign and advertising campaign. (+)
Singapore Airlines: It will grow Asia-Pacific market and upsurge in trans-pacific cargo. It will expand global airlines market. (+)
Star Cruises: Journey sail program will be intensified to capture the medium to long haul markets and offer wider marketing opportunities. (+)
2. 4 PESTEL Analysis
2. 4. 1 Demographic Environment
Population of Malaysia in 2009 2009 was 25, 715, 819 and predicted population development rate was 1. 72%. By the population growth in 2010 2010, it is around 28. 3 million populations in Malaysia. It shows an enormous market in conditions of potential. It is obviously positive signal with a positive population development rate. (+)
2. 4. 2 Economic Environment
GDP expansion of Malaysia in 2010 2010 is 8. 9% in 2nd 1 / 4 and unemployment rate is 3. 7% in 1st. As one of the company airlines, Malaysia Airlines has many cable connections throughout the world the world and it will give a big impact to the business if there are any changes in market level. (-)
2. 4. 3 Social-cultural Environment
As a growing country, Malaysia has increase the number of specialists who earn much more and travel a lot more frequently international. Thus, they want the assistance that can provide them time efficiency and good services. MAS has taken care of immediately them by offering business category ticket that offer the 5-celebrities services. (+)
2. 4. 4 Technological Environment
MAS also used the online reservation and buying to make their purchasing way easier for passenger. With this online purchasing, the individuals need to fulfill their details like the destination they would like to go and the departure place they need. The repayment will be settling via the online banking. (+)
2. 4. 5 Ecological Environment
The world has been stunned with the influx of Influenza A (H1N1 trojan) global pandemic and SARS. These situational factors have somewhat changed the notion of air travel travelers to some extent by claiming that it is no more safe to visit by air. (-)
2. 4. 6 Political-legal Environment
If there may be terrorism happen in the area of Southeast Asia, MAS need to avoid their flight destination for a certain time. (-) MAS characterized by government involvement and control. Because of this, fares priced in Malaysia were the lowest in the region. Foreign airlines were unable to contend at such a minimal fare which adversely afflicted the overall industry as well as the profits of MAS. (-)
3. 0 SWOT Analysis
3. 1 Strength
Strong brand recognition
MAS comes with an set up brand image in the local as well as the international market. The group has joined up with the most exclusive group of world airlines, being positioned as a 5-Legend airline by the aviation ranking group, Skytrax, with just four other airlines on the planet.
3. 2 Weakness
If we compared with other air travel companies, the cost offered by MAS is more costly than others. Thus, it will affect the real cost that'll be purchased by the customers. There simply a few groups of individuals in Malaysia who can effort to pay for the price to fly as a result of higher rate of airlines seat tickets.
3. 3 Opportunities
Launch of Firefly
Firefly is Malaysia's first community airline. MAS setup Firefly as a test-bed in controlling low cost procedure.
Expanding passenger traffic in Asia Pacific
MAS airlines addresses several places in Asia, like China, Japan, India and the Middle East, where in fact the demand for travel is high.
Increasing cargo traffic
There has been a rise in cargo traffic in South East Parts of asia. This is due to the expansion of export related companies. Therefore, MAS airlines advantages from the increase in demand for air cargo services.
3. 4 Threats
Increasing jet gasoline prices
The dramatic increase of fuel costs affects most airlines. It is one of the working expenses for MAS airlines.
MAS faces powerful competition from other airlines. The airline encountered major competition internationally from founded airlines and new start-up procedures.
Terrorism is resulting in decrease tourism and self-confidence in the airlines. It could happen in many ways of terrorism either using countries or it could happen in the plane itself. As example, we realize that Malaysia Airlines flies to 88 areas. In cooperation with code-share spouse airlines, the flight serves more than one hundred places worldwide. When there is terrorism happen in the area of Southeast Asia, Malaysia Airlines need to avoid their flight vacation spot to the Southeast Asia for a certain time. It is because it will be too dangerous to the people and the whole team as well as the aircraft. At exactly the same time it will reduce the assurance in the airlines.
4. 0 Market Segmentation
A complete market examination and segmentation will require a specific passenger and destination review.
Business - 20%
Government and International Organizations - 10%
Regional Resident Personal and Leisure Travelers - 15%
Diaspora Personal and Leisure Travelers - 10%
European Personal and Leisure Travelers - 5%
Seasonal Holiday break Travelers- 10%
The business travelers have an increased tendency to visit via full-fare MAS since the airline provides additional services such as wheel-chair assistance and in-flight telephone calls.
5. 0 Selected Marketing Strategy
MAS existence will be achieved by counting on the strategy of discovering and portion a market market well.
Media executions will utilize local marketing, which is highly targeted and affordable over a cost-per-impression basis.
Air procedures will be centralized and affordable.
Reservations will be centralized and affordable.
Marketing will be multimedia generated to the leisure market and combined press/direct sales made to commercial accounts.
5. 1 Product Strategy
MAS provides exceptional in-flight service from the friendly and helpful staff to the comfort provided by all classes of flights to the good quality of the airline cuisine. Extra services are given for those with additional needs, including wheel-chair assistance and individual meals for those with special diets. Malaysia Airlines have recently come out with the new branding strategy slogan which is "MH is Malaysian Hospitality". It is to highlight the hospitality of its cabin staff rather than the airline's intensive network and its own high grade cabin and current economic climate course cabin products. To guarantee the customers are experiencing the best service experience by all the staff and personnel, Malaysia Airlines operates a training program for cabin and flight crew.
5. 2 Price Strategy
MAS offers flights throughout the world, including direct flights from Brisbane, Melbourne, Adelaide, Perth, and Sydney to Kuala Lumpur. Malaysian Airlines offer cheap and discount plane tickets to destinations across the world, including London, Paris, NY and Los Angeles. Book your Korean Airlines plane tickets right here. The overall game plan is simple enough, offer customers good service to places they need (or need) to visit, and at a fair and predictable price. Essentially, we will continue to work from only two units of fares (existing for market segmentation purposes) for our service:
Weekday fares, in both Value and Prime (aimed primarily at business travelers who are prepared to pay a higher price to have the ability to go and keep coming back through the week).
Stay-over weekend fares, in both Value and Top quality (aimed more at the personal or leisure traveller for whom price is more important than traveling mid-week).
The only variations on those fares (not new fare bases) will be these:
Set, publicized discounts for early on reservations and purchasing seat tickets beforehand.
Set, publicized discount rates for reserving and ticketing online, electronically.
Seasonal and certain peak-period adjustments to the basic fares or adjustments scheduled to spikes in fuel prices and the like.
Infant and child special discounts based on the original fare (up to free in the case of newborns).
And possibly a stand-by fare for people who are prepared to take what's offered by the last second (helps us complete car seats, helps them get on a almost full journey, and it does not need to be radically low priced from the standard fare - probably no more than 5 percent discount - because the normal fare will be that, a normal fare, rather than some outrageously priced gouger).
5. 3 Syndication (Place) Strategy
Sales of flight tickets have historically been either direct from the flight itself or through various travel companies. Modern computer technology and communications functionality are changing the blend dramatically. Travel agents once accounted for 80% of ticket sales. This route of distribution has been one of very high cost to the airlines. Travel agent commissions at onetime became the highest specific cost item to a airline. Malaysia Airlines also used the online booking and buying to make their purchasing way easier for passenger. With this online purchasing, the passengers need to satisfy their details like the destination they want to go and the departure place they need. The payment will be settling via the web banking. In addition to other marketing programs defined the company will also market via the World Wide Web. We will establish our own website with reservation, purchase, and repayment capability.
5. 4 Promotion Strategy
Marketing is targeted locally. The benefit of a local and highly identifiable market is that press options can be limited in scope. The most effective media is likely to be outdoor billboards. Other marketing will be local spot TV on highly obvious programs such as local news and sports and also local radio. Newspapers and other print will not be used. In addition the business will hire a public relations company for both consumer and financial purposes.