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SUBJECT:STRATEGIC MARKETING
CLASS: MBA (1.5)
TOPIC: MARKETING STRATEGIESOF PIA
GROUP MEMBERS:
 SAMREENA KANWAL
 FATIMA SHUJAT
 SAIMA PERVEEN
 SIDRA SHAKEEL
SUBMITTED TO: MS MARIAM USMAN
DATE OF SUBMISSION: 27TH APRIL, 2016

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ACKNOWLEDGEMENT
We would like to express our special thanks of gratitude to our teacher Ms. Mariam Usman. Who
gave us the golden opportunity to make this project report on the topic of “MARKETING
STRATEGIES OF PIA”
During the making of this report we have learned many things about strategies making ideas and
theme for Entrepreneurship which will be very faithful for our future. We are also thankful to her
for her dedication and sincerity to us as a teacher.
Secondly, we would also like to thank our parents and group members who helped us a lot in
finalizing this report within the limited time frame.

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TABLE OF CONTENT
PAGE NO#
Synopsis
 Topic
 Purpose
 Scope
 Method
 Source
 Facts and figures
Executive summary
Strategic Marketing
Introduction
Objectives
Defining the problems
Describe the problems
Solution of major problems
Comparison between PIA performance from 2013 – 2016
BCG matrix
SWOT analysis
Strategies of PIA
Conclusion
Recommendation

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SYNOPSIS
TOPIC:
The topic of our research report is the marketing strategies of Pakistan international airlines
(PIA).
SCOPE:
PIA is the national flag carrier of Pakistan and the national airlines operating passenger and
cargo services around the world. It is now suffering losses but it has the capacity to earn profit
and contribute towards the GDP of country.
METHOD:
We get the information from net by using several search engines such as Google, yahoo etc.
SOURCE:
We get the data from secondary sources. In secondary sources we get most of the data from
internet and newspapers also providing sufficient information about current situation of the
organization.
FACTS AND FIGURES:
Major facts and figures that causing loss to PIA are over staffing and political involvement, de
motivate employees, lack of management, lack of advanced technology as compared to others
competitors, poor image and maintenance problems.

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EXECUTIVE SUMMARY
Pakistan international airline (PIA) is the national flag carrier and was established in 1955. It’s
not only provides transportation services, but its operations extend to providing cargo service and
courier service also. PIA serves two markets domestic and international. In the domestic sector,
it has outperformed itself by stretching its networks to areas where other airlines do not fly to. In
the international market it faces serve competition, especially due to the fact that these
international organizations are providing fares much lower than PIA. Internationally also, PIA is
encountered with a serve and strong challenge with many renowned international names. PIA
faces competition with not only international airlines but also with local airlines on the various
routes to the Middle East and the gulf. Due to fierce competition and various others problems
PIA facing a deep financial crisis. It is losing its market share both in international market and
domestic circuit. The present report is written about the current situation of PIA and the future
plans for PIA.

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STRATEGIC MARKETING
Identification of one or more sustainable competitive advantages a firm
has in the markets it serves (or intends to serve), and allocation of
resources to exploit them.
HOW STRATEGIC MARKETING WOULD BE
BENEFICIALFOR AN ORGANIZATION:
SM would be beneficial for an organization in this way:
Streamlines Product Development:
A marketing strategy helps you create products and services with the best chances for making a
profit.
Help Determine Optimal Prices:
Part of a marketing strategy is setting the right price for your product or service based on what
you learned in your market research.
Establish Effective Distribution:
Once you know what product features you’ll offer, who your target customer is and what your
price points will be, you can select where you want to sell to maximize your marketing
effectiveness.
Organizational Impact:
When you have a marketing strategy, your departments can better work with each other, because
they are all working from the same plan.

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INTRODUCTION OF PIA
Pakistan International Airlines (also referred to as PIA), is the national flag carrier of Pakistan and
the national airline operating passenger and cargo services around the world. Its main hubs are
Jinnah International Airport, Karachi, the Allama Iqbal International Airport, Lahore and the
Islamabad International Airport, Islamabad/Rawalpindi. It also serves regional airports, including
Peshawar International Airport, Peshawar, Faisalabad International Airport, Faisalabad and
Multan International Airport, Multan that connect to the main hubs and have flights to the Middle
East. Pakistan International Airlines PIA can trace its beginnings to the days when Pakistan still
was not a nation. In 1946, Muhammad Ali Jinnah, also known as Quaid-e-Azam, realized the need
for an airline network for the forming country. He called upon the help of an experienced
industrialist Mirza Ahmad Isfahan. Orient Airways, registered in Calcutta, was formed on October
23 1946, In February 1947, three DC-3 airplanes were bought from a company in Texas, and in
May of that year, the airline was granted a license to fly. Services were started in June from
Calcutta to Akyab and Rangoon. This was the first post war airline flight by a South Asian
registered airline company. Two months after this service began, Pakistan as a nation was formed.
Orient Airways began relief flights to the new nation, and soon after, it moved operations to
Karachi, where it began the important route from Karachi to Dhaka. In addition, their initial
domestic route in Pakistan was established, from Karachi to Lahore to Peshawar, and from
Karachi to Quetta to Lahore. The government of Pakistan, realizing the operation was failing
economically, asked the airline to merge into a new national airline that the government was
planning. On March 11 of 1955, Orient Airways merged with the Government's proposed airline,
becoming Pakistan International Airlines Corporation. During the same year the airline opened its
first international service, under the PIA name, from Karachi to London Heathrow Airport in
London, United Kingdom, via Cairo International Airport in Cairo, Egypt and Leonardo Da Vinci
International Airport in Fiumicino, Italy using Lockheed Constellations. The DC-3s continued
operating the domestic services in Pakistan.

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VISION STATEMENT
PIA's vision is to be a world class airline exceeding customer expectations through dedicated
employees, committed to excellence.
MISSION STATEMENT
Employee teams will contribute towards making PIA a global airline of choice:
Offering quality customer services and innovative products
Participating in global alliances
Using state-of-the-art technologies
Ensuring cost-effective measures in procurement and operations

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OBJECTIVES
Focus on customer defined quality attributes and endeavor to shape processes and operations
to achieve quality objectives without compromising safety and legal requirements.
Prevent or minimize all aspects that can lead to unacceptable impacts on environment
Ensure adequate management of occupational health and safety of our employees and others
involved in our areas of activity.
Abide by all applicable national & international legislation, adopt best industry practices,
and conform to the requirement of the subscribed standards for self and for outsourced
services.
Continually improve the effectiveness of PIA’s Quality & HSE Management Systems and to
regularly review its components for their suitability.
Provide for all necessary resources to achieve the defined Quality & HSE objectives; to
bring all risks to an acceptable level or as low as reasonably practicable.
Ensure that all required audits are conducted and reviewed regularly. All employees shall
cooperate fully with internal and external auditors to achieve our goal of continuous
improvement keeping in view the challenges of changing environments.
Ensure active participation of representatives from relevant areas in all Quality & HSE
related decision making and shall ensure that good performance is recognized and rewarded.

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DEFINING THE PROBLEMS
PIA faces serious problems which are as:
Over staffing and political involvement.
De motivated employees.
Lack of management.
Lack of advanced technology as compared to other competitors.
Poor image and maintenance problems.

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DESCRIBING THE PROBLEMS
 Over Staffing And Political Involvement:
PIA is a large organization with 18.043 employees. Its fleet comprises of 43 planes. Its operating
planes are just 33. It means round about 525 employees per plane. The industry average is
between 150 250 people. This describes the position of the company clearly. This drives the cost
of the company further.
 De Motivated Employees:
PIA is a company which is constantly going in loss and they don’t give the salaries and wages to
their employees so employees of PIA are uncomfortable and are switching to other job.
 Lack Of Management:
In PIA the management has failed to boost up the organization, the main reasons of poor
management are:
No proper planning.
They don’t know the right path.
They don’t want to change themselves.
The have the destination but they don’t want to do the journey.

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 Lack Of Advanced TechnologyAs ComparedTo Their Competitors:
PIA is competing with the airlines all over the country especially with the Middle East which are
coming in the heavy investment and the competitors of PIA such as Qatar airways and Emirates
have great capital. PIA being already in a financial crunch faces tough tasks and has less capital
to buy advanced technology.
 PoorImage And Maintainance Problem;
PIA is not working on the maintenance of their planes and services. The image of PIA in the
customer’s mind has been going downward. Due the dissatisfaction of customers has decreased
the image of PIA in the Stock market.

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COMPARISON BETWEEN PIA PERFORMANCE FROM
(2013-2016)
The report for the first quarter of 2012 does not show any improvement in PIA. The after tax
losses reported for the first quarter of 2013 are PKR 7.81 billion as compared to PKR 4.24 of
2011. Revenue is also pretty much stagnant at PKR 26.44 billion for the first quarter of 2013
compared with PKR 26.18 billion for the first quarter of 2011.
After hovering around the five and a half million mark for around 5 years, the passenger
traffic rose to just under six million in 2011 while the passenger load factor went down from
74% in 2013
In 2007 employee sector not over loaded or in 2013 employee sector are much over loded.so
day by day PIA face more loses

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STRATEGIES OF PIA
1. PIA’S POSITIONING STRATEGY:
Positioning By Attributes:
In this strategy PIA positions itself in the mind of the consumers as the reliable air transport
service provider.
Positioning by Price and Quality
In this positioning strategy, PIA paints the image of being the less price taker and providing
high quality to the customers as compare to the competitors. PIA should set its prices as per
their services which they are offering in order to get highest rate of customer satisfaction and
retention.
Positioning by Product User:
PIA positions itself as an ambassador of Pakistan in the world. Pakistani expatriates residing
outside the country feels proud when they see an airline of their own home-country carrying
the national flag.
2. TARGETING STRATEGYOF PIA:
PIA’s Existing Target Audience
 The Demographic Segmentation, PIA is targeting the income and occupation oriented
people.
 The Geographic Segmentation of PIA. All the audience from the domestic and
international regions is included. In domestic people within the country are included and
people residing outside Pakistan.
 The Behavioral Segmentation PIA‘s target audience is categories as follow. In the occasion
based market segmentation of PIA. Hajj’s Occasion, Eid’s Occasion, New Years’
Occasion, Loyalty Status.

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 The Psychographic Segmentation of PIA, the target audience of PIA will be the following
are Social Class, Tourists, Religious Travels,
3. COMPETITOR ATTACK STRATEGY OF PIA :
The attack strategy of PIA against its competitor Air Blue is Flanking Attack Strategy
Domestic Competitor:
Within the country PIA has Air blue as a competitor.Airblue is a private airline based in Karachi,
Pakistan. First airline in Pakistan and only the third carrier in the region behind Emirates Airline
and Royal Jordanian to introduce the latest self-service check-in facilities at Jinnah International
Airport, Karachi.
International Competitors of PIA:
These are international competitors of pia.
 Thai Airline
 Ethad Airways
 Qatar Airways
 Singapore Airline
4. NEW STRATEGY OF PIA:
This new strategy of PIA according to dawn new paper , they has to be evolve a marketing
strategy aimed to enhancing revenue generate for the nation carrier and to facilitate ticketing and
reservation procedures with the induction of Boeing.

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BCG MATRIX
Pakistan air lines have been classified as a cash cows because it does have a high market share
which is 67 percent in the airline industry domestically and 30 percent internationally and low
business growth opportunity.

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SWOT ANALYSIS
Strengths
Point to point frequency (Lahore to London)
High quality services
People oriented Organization (No language problem)
Govt. sponsored organization
Perfect timings
Abroad Pakistanis prefer PIA (patriotism)
Healthy internal environment
Weaknesses
Less international traffic
Liquor is not served so less traffic
Weak rewards & appraisal
Less effort in the field of marketing
High Fares
Over staffing (overburdened employees)
Lack of professionalism
Low salary of engineers

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Opportunities
Traffic ethnic
Better recruitment policy
Big markets available that are un served
Speed ex, courier service domestically can be internationally
Low cost carriers
Better training programs
Have an opportunity to grow and expand throughout the country
Threats
All domestic and international carrier
Fluctuating petrol prices
Government changing
Barriers to investment for abroad due to country conditions
Time taken by embassy to accept visa
Terrorism
Busy flight schedule
Open sky policy
High amount of loan

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CONCLUSION
Pakistan international airlines (PIA) discourage their loyal customers by degrading with
their attitude.
PIA condition is very bad and economical level is also very low as compared to others.
The people of Pakistan want to travel through PIA but they say they feel complicated to
travel from PIA.
PIA did not coordinate with the departments of organization.
Security of PIA performance and train to address privacy issues.

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RECOMMENDATION
After analyzed the situation we recommend to PIA is that:
Management is needed to perform its responsibility in ethical way.
Condition of airlines should be improved.
Need the perfect leader for need of better advancement.
Employees should perform their duties with honesty.
Teamwork is necessary.
Employee’s coordination is necessary.
Customer’s satisfaction is also very necessary.
PIA should have all the information about their competitor’s activities.
Providing good services to customers.
REFRENCE
www.google.com
www.yahoo.com
www.msn.com