Create awareness of differentiation in a brand and Communicate the image of the product effectively.

2. VASP
head office: Paulo Airport in São Paulo,
Brazil. main bases: Congonhas Airport
and Guarulhos International Airport (GRU),
São Paulo.
COMPANY Introduction

3. Established on 4 November 1933
First airline to serve the interior of the
state of São Paulo.
At the start of the 1930s, it was the only
carrier to operate with land planes.
In 1939: license to operate flights to the
states of Paraná and Santa Catarina.
 In 1962: license to operate nationwide.
1959: VASP initiated air shuttle services.
Introduction (Continued)

4.  Mismanagement
financial losses
increasing debt and bad credit
in 2002: cancelled all of its international
operations.
VASP had plummeted from the second to
the fourth position in the Brazilian airline
market.
1980: VASP was being plagued by
inefficiency
 losses covered by state capital injections
bloated payroll for political reasons.
 Expanded operations in the country
 International routes
Start of Decline

5.  The company faced its worst crisis in 2004
 domestic market share reduced to 10%.
 2005: grounded the airline from operating
scheduled services
 financial investigation
 charter services until April 2005
2008: it declared bankruptcy
In August 2011, nine of the company's
planes sold for scrap at auction
Decline

6. Economy
Politics
Aviation industry
Re-launching the Company

7.  Seventh largest economy by
nominal GDP in the world
and by purchasing power parity.
 From 2000 up to 2012: fastest-
growing major economies in the world
 Economy growth has decelerated in 2013
 No liquid growth throughout 2014
 Economy has shrunk by 2.5% in 2015
Brazilian Economy

8.  Democratic government.
 More than 60% of the revenue of the
government is from tax payments.
 taxes on corporation income
 financial operations
Brazilian Politics

9.  The São Paulo International Airport. is known as
one of the busiest airports in Brazil
 About 32,177,594 passengers travel through it
daily
 The commercial airlines are regulated by the DAC
- Department of Civil Aviation.
 Brazilian airports are built and maintained
by Infraero
 International fares are regulated by international
competition
 Varig is the company which operates more routes.
Brazilian Aviation Industry

10. “to provide better experience to our customers and
strive to grow business with honesty and integrity.”

11. DIFFERENCIATION STATEGY:
 Only offering business class
 Corporate meeting room on fleet
 Customized food “chef’s special menu

12. Airlines have two main services:
 On Ground Services
 In Flight Services
Product attributes:
 VASP Airlines is providing World Class,
Luxurious, and hospitable services.
 VASP Airlines Provide with the best in
Quality and experience.
Product Mix

13. Pricing strategy:
Premium Pricing
VASP Airlines is going for Premium
pricing, the practice of keeping the price of
product or service artificially high in order
encourage favorable perceptions among
buyers, based solely on the price.
Price

14. Distribution Channel:
 Global Destination Systems:
 Direct Sales:
 Web Portal
Place:

15. Promotion Objective:
 Create awareness of differentiation in our
brand.
 To capture the market through
advertisement and customer sale service.
Advertising Objectives
 Communicate the image of product
effectively.
Promotion Mix:
 Advertising
 Sponsorships
 publicity
Promotion:

16. Promotion Mediums:
 Media Coverage (TV, Radio, Print and
online)
 Advertising (TV, Radio, Print and online)
 Travel Agents
 Tour Operators
 Sponsorships and Exhibitions
 Government
Promotion medium:

17. Conclusion