2. Presentation Outlines
Overview of Internet properties
Benefit, cost and value creation
Customer Characteristics and Branding strategy
Website analysis
Business model
E-Marketing metrics
Recommendations
3. Overview of Internet Properties
Website analysis
Web content
Website properties
Global reach
Time moderator
Information equalizer
Task automation
Website design and Usability
5. Benefit, Cost and Value Creation
Customer Experience
Creating a Positive Customer Experience
- An interaction between an organization and a customer as perceiver through a
customer’s conscious and subconscious mind
setting low air travel price by Air Asia
- offered low fares without compromise the quality of air travel services
created their first loyalty program
-biggest ever loyalty program, simply called BIG
-earn points for every transaction
-enjoy the priorities of booking, special offers and has the chance to redeem free
flights
come out with mobile phone app
-can access to Air Asia website by using their mobile phone
- consumers can self check-in by using their mobile phone after downloaded the
apps for free
7. Benefit, Cost and Value Creation
Give lowest price of air flight service to customers
-compared to other airline company such as Malaysia Airlines (MAS), they offered at higher
air flight rate
Air Asia Insure Travel Protection
-protection includes flight cancellation or curtailed or delays, loss of luggage, personal
accident, accidental medical reimbursement, and evacuation expenses
Creating airasiago.com
-customer book for 5 star hotels at 3-star rate which is guarantee as lowest price compared
to elsewhere online
-will refund the price difference if customers are able to find lower rate at the same period
for the same hotel booking
Collaborated with other banks
-DBS bank in Singapore to launch a new MasterCard credit card
-Citibank in Malaysia
-Benefit of discount
8. Benefit, Cost and Value Creation
Internet Marketing Mix
Products
- internet helped Air Asia to increase customer benefits
- world’s first airline SMS booking
- Air Asia also provides ticketless service (cost-reduction)
- cost-reduction as the company allows Internet booking
Prices
- Air Asia is a well-known low cost airline in Asia
-target customers from various income levels
Promotions
- Promotions act as marketing communication
- Sponsorships ( e.g : QPR and Australian Moto Grand Prix)
- Online promotion is way how Air Asia reduces costs
Places (Distribution)
- Place or distribution is about delivers the services or goods to the customers
- connecting people and places across 132 routes and covered 65 destinations in 18
countries
9. Benefit, Cost and Value Creation
Customer Relationship Management
•The process of targeting, acquiring, transacting, servicing, retaining
and building relationship with customers
• Allows the company to predict customer purchase behavior with
the support of information technology and customer database.
•Ensuring that the customer has an opportunity to speak with the
company
-Self-service software in social media network
- Facebook, Blog and Twitter
•Social Customer Relationship Management
-to create direct route of contact with their customers
10. Consumer Characteristics and Branding Strategy
Branding consistency: Online & Offline strategy
ONLINE OFFLINE
• sponsorship of global brands • uses online facilities for
- e.g : QPR and the Williams reservations and payment of fares
Formula 1 racing team
• advertising in the print media • introduce Short Messaging System
- e.g : newspaper to advertise (SMS) to book seats
their new promotions or travel
packages
partnership with Citibank to
introduce Air Asia-Citibank Credit
Card
11. Consumer Characteristics and Branding Strategy
Environmental, Situational & Personal factors
• Condition of the country
- e.g : earthquake,H1N1
• Political environment
- perception of the environment in the country
- obtained from any approach like newspaper, television, radio and internet
• Personal factors
- peer influence
Air Asia has to maintain its good brand image, supply good quality services at
affordable prices
- Income level
think of budget travel plan
e.g : those with high level income can purchase premium class air flight tickets
12. Consumer Characteristics and Branding Strategy
Market Segmentation
MARKET SEGMENT DESCRIPTIONS
Price-conscious This segment of customers prefers low air fares
business passenger because their main concern is to obtain as lowest
price as possible
Quality-conscious This segment of customers prefers full services airlines
business passenger such as on-board services
Long- haul Air Asia X is created in order to serve this group. Air
Asia X Premium Flatbeds designed for those looking
for comfort seat.
Short-haul Short-haul customers prefer efficient and effective
booking, check-in service and short boarding time.
13. Consumer Characteristics and Branding Strategy
Brand Positioning
• Using a tagline “Now Everyone Can Fly”
- the customer will always easy remember about the low cost of the Air
Asia provide
• Targeting individuals who looking for air travel services at affordable price
- offering lowest airfare and widest network of destinations in Asia.
•Clear logo
- clear written in big red cursive letterings against a white background
- Located at the bottom of the logo is the tagline ‘Now Everyone Can Fly”
14. Consumer Characteristics and Branding Strategy
Online & Offline customers
• classical type of customer • save the cost
- just clicking in the Air Asia website
• difficulty to make a booking date of
the flight • enjoy using the online
- ask about the schedule of air
• take a lot of cost traveling through online, make a
- cost of traveling to airport payment through online, and also
print out the ticket through online
• easiest way to get the information
15. Website Analysis
Currency
1.Credit card
Visa All currencies
MasterCard All currencies
Amex MYR, THB, USD, AUD, SGD,
BND and HKD
JCB JPY
16. Website Analysis
Currency
2. Direct debit
Malaysia Ringgit Maybank2u, CIMB Clicks Hong Leong
Online etc
Thailand Baht Siam Commercial Bank
Indonesia Rupiah CIMB Niaga
Singapore Dollar eNETS
Philippine Peso Dragonpay Corporation
Renminbi 99 Bill, AliPay
India Rupee CC Avenue, Axis Bank
Australia Dollar PayPal
US Dollar AliPay International, Smartlink,
17. Website Analysis
CONTENT & USER ENGAGEMENT
CONTENT USER ENGAGEMENT
Air Asia website contain Air Asia engaging with their
variety type of links customers using social media
e.g : Facebook
Providing different languages
for different countries
Flash graphics
18. Website Analysis
USABILITY, NAVIGATIONS & ACCESSIBILITY
Navigation
- Interactivity design
- Company logo is linked to homepage
Access
- AirAsia has reasonable site-load time
- Ideal font size
19. Website Analysis
OTHER COMPANY OWNED SITES
• AirAsiaRedTix.com
• AirAsiaBlog.com
• AirAsiaCourier.com
• AirAsiaMegastore.com
21. Business Model
SPECIFIC E-BUSINESS MODEL USED
• Air Asia has been classified into the Enterprise Level E-
Business Model
1.) E-commerce : online ticket booking and reservation
2.) Social networking : Facebook
22. Business Model
CUSTOMER VALUE
• Attributes : online reservation system
• Branding : apply existing brand name for new
products (e.g: AirAsiaMegastore.com)
23. Business Model
REVENUE STREAM SOURCES
• Sales model : selling online air travel tickets
•Transaction fee model : all BSP payment transactions for
AirAsia bookings will be charged a fixed BSP Transaction fee
24. E-Marketing Metrics
SITES OBJECTIVES
• Air Asia website can be categorized into two major type of website which are commerce where
the website is tasked for selling the company products and services online and also
support/service site where it provides visitor with quick answer such as FAQ.
Two main objective of the web site which are :
i.To achieve the sales and generate revenues
Almost all of the sales of the company are generated from the web site or using online
transaction.
ii. To facilitate the company marketing activities
A large portion of the website or center part of the website is used to displays the latest
promotional of the company
iii. To provide customer support
Air asia had automated a lot of process in the company for instance, travelers are able
to check in to the flight online by using the web check-in option in airasia.com.
25. E-Marketing Metrics
Metric Used
The balance scorecard is
• Astrategic planning and management system to measure and
improve the strategies of the company.
• The balance scorecard measures the company strategies from four
perspectives which are customer perspective, internal business
perspective, learning and growth perspective and financial
perspective.
30. Conclusions & Recommendations
In order to compete their competitors, Air Asia has design their business
strategy which is mainly focused on low-cost philosophy which required
simplicity and efficient operations method
Air Asia creates positive customer experience using internet marketing
mix.
Moreover, discovered that Air Asia is very good in promoting their brand
to all around the world.
The successful of Air Asia in ASEAN significantly show the importance of
e-Commerce & m-Commerce assisting Air Asia to simplify their operation,
efficiency, productivity and high utilization of assets to offer low fares.
Air Asia should be ready to challenge their competitors by implementing
technology to enable it to position themselves as leader in technology,
industry-leading accuracy , and 5-star quality in the airline industry
31. Conclusions & Recommendations
(i) Punctuality
A reader Ken Miles wrote: “our recent Air Asia flight from Gold Coast to Kuala Lumpur was
delayed for 45 minutes because of computer failure.”
Air flights delay is the main concern of many customers especially business traveler, it
could affect the schedule of business traveler, thus will trigger inconvenience to them
( ii) Customer relationship Management
Air Asia needs to train their employees and empowered them by giving them guidelines
on how to provide good quality of services to customers.
Employees should be trained to be familiar about the whole operations of Air Asia to
increase effectiveness and efficiency of customer services, thus build up relationship with
customers.
(iii) Airport Terminal of Air Asia
Due to the status as low cost carrier, Air Asia chooses for low cost and remote area for
their airport terminal. Traveler needs minimum 45 minutes to reach to the terminals which
are very time-consuming and inconvenient.
Therefore, Air Asia should consider locating their airport near cities.
32. References
Balance Scorecard Institute (2012). What is Balance Scorecard?
Retrieved from http://www.balancedscorecard.org/Home/tabid/36/Default.aspx
Press Release: Air Asia Leading Effort to Reduce Cost of Travelling. (2011, December 21).
Retrieved May 10, 2012, from Air Asia: http://www.airasia.com/my/en/corporate/pressrelease.page
Air Asia Strategy. (n.d.). Retrieved May 10, 2012, from Air Asia:
http://www.airasia.com/my/en/corporate/irstrategy.page
AvantiKumar. (2011, March 17). AirAsia adopts social CRM solution. Retrieved May 19, 2012, from
ComputerWorld Malaysia: http://computerworld.com.my/resource/applications/crm/airasia-adopts-
social-crm-solution/
Strauss, Judy and Frost, Raymond (2012) E-Marketing 6th Edition, New Jersey, Prentice Hall Publising.
Khor Yoke Lim, R. M. (2009). Branding an Airline: A Case Study Of Air Asia. Malaysian Journal of Media
Studies, 35-48.
Evaluating Strategy For E-Commerce in Airline Industry :A Case of Air Asia. (n.d.). Retrieved May 19,
2012, from http://etd.uum.edu.my/1433/1/SAPINA_BT._DUSAMO.pdf
